Explanatory Materials
(For Fiscal Year Ended March 31, 2024)
May 14, 2024
Table of Contents
- Progress of FY2023-25Medium-term Management Plan
- Vision for 2035 (SOC Vision 2035)
- FY2023-25Medium-term Management Plan
- Numerical Progress
- Net Sales and Operating Income by Business and Initiatives to Achieve the Medium-term Management Plan ①②
- Capital Allocation
- FY2023 Financial Results/Outlook for 2024
- Domestic Cement Demand / Our Sales Volume
- FY2023 Financial Summary
- FY2024 Earnings Forecast
- Supplementary Material
2
Table of Contents
- Progress of FY2023-25Medium-term Management Plan
- Vision for 2035 (SOC Vision 2035)
- FY2023-25Medium-term Management Plan
- Numerical Progress
- Net Sales and Operating Income by Business and Initiatives to Achieve the Medium-term Management Plan ①②
- Capital Allocation
- FY2023 Financial Results/Outlook for 2024
- Domestic Cement Demand / Our Sales Volume
- FY2023 Financial Summary
- FY2024 Earnings Forecast
- Supplementary Material
3
(1) Vision for 2035 (SOC Vision 2035)
Aim: Company with a strong presence
- Presence as a challenger with thorough differentiation and
unique style
-
An environmental solution company that meets the needs of the times*
③ Tackle challenge of withdrawing from coal use
- What is an environmental solution company of SOC:
- A company that provides solutions (products and solutions) to environmental issues toward the realization of a recycling-oriented society and a decarbonized society
Target figures for 2035 | |
Sales | 400,000 million yen |
Operating | 40,000 million yen or more |
income | |
ROE | 10% or more |
ROIC | 6.5% or more |
100
Business Portfolio
Transformation
Cement business | 50% |
Non-cement50% business
4
(2) FY2023-25Medium-term Management Plan
Company-wide strategy
Improving profitability of existing businesses & building foundations for
growth
cement business
Improving
profitability of
existing businesses
- Recovery of profitability in cement business
- Improve profitability by gaining market share for next- generation optical communication components
Building foundations
for growth
- Expand scale and strengthen profitability by concentrating resources on the electronic materials business for semiconductor manufacturing equipment
- Overseas business expansion (Australian business)
- New business development in the decarbonization field
Strengthen management foundation
- Human resource strategy: Investment in people who support business growth and operation of new personnel measures
- R&D strategy: Strengthen R&D to create new businesses in high-performance products and decarbonization fields
- IP strategy: Develop human resources with intellectual property skills and promote utilization of intellectual property information analysis in management strategies (IP landscape)
- DX strategy: Develop infrastructure for solving issues in each business division
in the decarbonization field5
(3) Numerical Progress
Ratio to net sales
Changes in profits | Changes in indicators |
(%)
265,000
million yen
222,500 229,500
204,700 million yen million yen 35 million yen
28 28
31
69 72 72 65
FY22 | FY23 | FY24 | FY25 | ||
Results | Results | Forecast | Medium-term | ||
plan | |||||
Cement | Non-cement | ||||
(100 million yen)
214
200
153
150
111
103
100 73
50
0
- 50
- 57
- 100 ▲ 85
FY22 FY23 FY24 FY25
Results | Results | Forecast Medium-term | ||
plan | ||||
Operating income | Net income | |||
(%) | 8.0 or | ||
8.1 | |||
8.0 | more | ||
6.0 | 5.3 | 5.0 or | |
more | |||
4.0 | 2.8 | ||
1.8 | |||
2.0 | |||
0.0 | |||
▲ 2.1 | |||
▲ 2.0 | |||
▲ 3.0 | |||
▲ 4.0 | |||
FY22 | FY23 | FY24 | FY25 |
Results | Results | Forecast | Medium-term |
plan | |||
ROIC | ROE |
6
-
Net Sales and Operating Income by Business
and Initiatives to Achieve the Medium-term Management Plan ①
Cement
(100 million yen)Cement business
100 | 1,601 | 1,647 | 1,730 | 2,000 | |||||||
1,403 | |||||||||||
80 | 1,600 | ||||||||||
60 | 1,200 | ||||||||||
40 | 800 | ||||||||||
60 | |||||||||||
20 | 35 | 400 | |||||||||
0 | |||||||||||
▲ 18 | |||||||||||
▲195 | |||||||||||
FY22 | FY23 | FY24 | FY25 | ||||||||
Results | Results | Forecast | Medium-term | ||||||||
plan | |||||||||||
Operating income | Sales | ||||||||||
- Securing fair prices
- Responding to the 2024 Problem of Driver Shortages in Logistics
- Expanding use of fossil energy alternatives
- Developing Australian downstream business
Advanced materials
(100 million yen)Advanced materials
100 | 355 | 400 | ||||||||
217 | ||||||||||
80 | 300 | |||||||||
187 | 158 | |||||||||
60 | 200 | |||||||||
40 | ||||||||||
54 | 69 | 100 | ||||||||
20 | ||||||||||
29 | 16 | |||||||||
0 | ||||||||||
FY22 | FY23 | FY24 | FY25 | |||||||
Results | Results | Forecast | Medium-term | |||||||
plan | ||||||||||
Operating income | Sales | |||||||||
7
- Expanding production capacity with a new manufacturing building
- Implementing semi- automated and labour-saving manufacturing processes to strengthen competitiveness in quality and cost
- Developing next-generation electrostatic chuck (ESC)
-
Net Sales and Operating Income by Business
and Initiatives to Achieve the Medium-term Management Plan ②
Mineral resources |
Cement-related products
(100 million yen)
Mineral resources business
50 | 180 | 200 | |||||||||||
134 | 146 | 152 | |||||||||||
40 | |||||||||||||
30 | Operating | ||||||||||||
20 | 100 | income | |||||||||||
25 | 31 | 34 | 33 | ||||||||||
10 | Sales | ||||||||||||
0 | |||||||||||||
FY22 | FY23 | FY24 | FY25 | ||||||||||
Results | Results | Forecast | Medium-term | ||||||||||
plan | |||||||||||||
(100 million yen) | |||||||||||||
Cement-related products | |||||||||||||
50 | 250 | 271 | 300 | ||||||||||
221 | 217 | ||||||||||||
40 | |||||||||||||
Operating | |||||||||||||
30 | 200 | ||||||||||||
20 | income | ||||||||||||
23 | |||||||||||||
10 | 15 | 15 | 17 | 100 | Sales | ||||||||
0 | |||||||||||||
FY22 | FY23 | FY24 | FY25 | ||||||||||
Results | Results | Forecast | Medium-term | ||||||||||
plan | |||||||||||||
- Acquiring and retaining new customers
- Operating the shipping berth for Shuho Mine upon completion of its extension
- Advancing new development projects to secure mineral content
- Participating in large-scale projects
- Expanding orders received for urban construction and civil engineering work
-
Enhancing labor-saving and productivity through construction
ICT
Optoelectronics |
(100 million yen)
Optoelectronics business
50 | 79 | 100 | |||||||
40 | Operating | ||||||||
30 | |||||||||
income | |||||||||
20 | 50 | ||||||||
24 | 20 | 20 | 7 | Sales | |||||
10 | |||||||||
0 | |||||||||
▲ 1 | ▲ 7 | ▲ 5 | |||||||
FY22 | FY25 | ||||||||
FY23 | FY24 | ||||||||
Results | Results | Forecast | Medium-term | ||||||
plan | |||||||||
8 |
- Acquiring customer endorsement through sample evaluation
- Establishing a mass production system
(5) Capital Allocation
(%) | Cross-shareholdings/net assets |
26.4 | |
FY2023-25 Plan
30 | 22.6 | 19.6 | ||||
20 | ||||||
10 | ||||||
10% or less | ||||||
0 | ||||||
22/3 | 23/3 | 24/3 | 27/3 | |||
(FY21) | (FY22) | (FY23) | (FY26) |
- Cross-shareholdings= non-consolidated investment securities amount
*Strategic
shareholdings / net assets ratio Aim for
less than 20% in
FY2023and less
than 10% in FY2026
*Aim for a total
payout ratio of 50% or more on average over three years based on continued stable dividend payments
Shareholder
return
180
FY23 Results
- Amount: 4,100 million yen FY24 Forecast
- Amount: 9,000 million yen
FY23-24 Average total payout ratio: 51%
FY23 Results
- Amount: 43,700 million yen
FY24 Forecast
- Amount: 28,000 million yen
Supplementary comments
- Profitability improvement
- Decrease in coal inventories
Operating
CF
717
Operating
CF
1,110
Capital
investment/
Overseas
investment
Shareholder | ||
FY23 Results | ||
return | ||
131 | • Amount: 28,900 million yen | |
FY24 Forecast | ||
• Amount: 31,000 million yen | ||
Capital
investment/
Overseas
FY23 Results
- Amount: 13,900 million yen
FY24 Forecast
- Amount: 4,000 million yen
Sale of cross-shareholdings
- 17,800 million yen
Sale of
assets, etc.
179
Sale of
assets, etc.
200
1,080
Others
50
investment FY23 Results
-
Amount: 24,600 million yen
599 FY24 Forecast - Amount: -8,000 million yen
Supplementary comments
- Change in interest-bearing
Others | debt: 16,400 million yen |
166 | |
in (FY23-24
cumulative)
in out
9
out (FY23-24 | Unit: 100 million yen | |
cumulative) | ||
Table of Contents
- Progress of FY2023-25Medium-term Management Plan
- Vision for 2035 (SOC Vision 2035)
- FY2023-25Medium-term Management Plan
- Numerical Progress
- Net Sales and Operating Income by Business and Initiatives to Achieve the Medium-term Management Plan ①②
- Capital Allocation
- FY2023 Financial Results/2024 Earnings Forecast
- Domestic Cement Demand / Our Sales Volume
- FY2023 Financial Summary
- FY2024 Earnings Forecast
- Supplementary Material
10
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Sumitomo Osaka Cement Co. Ltd. published this content on 28 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 May 2024 07:00:06 UTC.