financial statement for fy 2003 - sekisui chemical · spiritual climate of an enterprise cs quality...

1

Financial Statement for FY 2003Financial Statement for FY 2003

Sekisui Chemical Co., Ltd.Naotake Okubo

27 April 2004

2

5793150Net Income

167Dividend

107168275Recurring Income

91140231Operating Income

1527,9978,149Sales

ChangesFY2002 ActualFY2003 Actual

(yen)

(100 Mil. Yen)Sales and Operating Income for FY2003

Our prominent businesses bringing us stronger competitive power

2

3

Summary of FY 2003Housing

Establishing Predominant Competitivenessby Environmental Activities & LCC & Housing with no heating and lighting expenses

Infrastructure & EnvironmentSecuring Predominant Competitivenessin the core business of water supply & drainage system

High Performance PlasticsSmooth expansion of IT & Automotive related business

Our prominent businesses bringing us stronger competitive power

4

70150220Net Income

3710Dividend



3518,1498,500Sales

ChangesFY2003 ActualFY2004 Plan

(yen)

(100 Mil. Yen)Sales and Operating Income for FY2004

Accomplishing Operating Income of 35 billion yen

3

5

231

140

0

100

200

300

400

500

600

2002 2003 2004 Plan

Trend of Operating Income

350350350

Brushing up: Our Prominent Businesses

Environmental ManagementEnvironmental Management

CS Quality ManagementCS Quality Management

Accomplishing Operating Income of 35 billion yen

Distinguishing Sekisui Brand

((100 100 Mil. yen)Mil. yen)

Brushing up:

6

1000

1500

2000

2500

3000

2002 2003 2005

Progress Rate Progress Rate against the Planagainst the Plan

54%54%

Growing with “Environment”Sales expansion of the utility-cost-free housesExpanding the pipeline-restoring business

Renovating management with “Environment”Promoting cost reduction by reducing the load onto the environment

Achieving Zero Emission in all of the factories(in FY 2002)

Achieving Zero Emission in the houseconstruction sites (in FY 2003)　

Establishing a prominent position with environmental solutions

(100 Mil.yen)Sales of EnvironmentSales of Environment--

conscious Productsconscious Products

2005 Plan 250 b. yen2005 Plan 250 b. yen　　（（100 b.yen increase100 b.yen increase

from FY2002from FY2002））

20402040

15001500

25002500

24

32

46

20

25

30

35

40

45

50

55

60

FY2001 FY2002 FY2003

Ratio of Solar GeneratorRatio of Solar Generatormounted housemounted house

30

46

70

0

50

100

FY2002 FY2003 FY2004Plan

(%) (100 mil yen)

Plan

Sales of Environ.&Civil Eng. Div.Sales of Environ.&Civil Eng. Div.＜＜Restoration PipeRestoration Pipe＞＞

4

7

Spiritual Climate of an EnterpriseSpiritual Climate of an Enterprise

CS Quality Management Dept. newly established （2004.4.1)Slogan：Sekisui Chemical has done it amazingly !

Establishing a prominent position with “CS Quality”C

ustomers

Custom

ers

HousingHousing

Infra. & Infra. & EnvironEnviron..

HPPHPP

Creating the System to trace customersCreating the System to trace customers’’ voicevoiceback to the sourceback to the source

Qualityof

Products

Qualityof

Persons

Qualityof

System

○: Emphasized area ofCS Quality

CustomersCustomers

○○○

○○○○○○

○○○○○○

○○○

Reformation of Corporate CultureReformation of Corporate Culture

Customer-ContactsCore

TechnologyProduct Creation Sales After

8

Advancing into the growing markets with our prominent technology

Promoting globalization

Positive Investment Positive Investment in IT, Automotive & in IT, Automotive &

Piping Related Piping Related BusinessBusiness

Making the System for Making the System for further Expansion & further Expansion &

DevelopmentDevelopment

Start-up of Thai Plant （Interlayer Film）Construction of China Plant （Int. Film）Obtained the management right of Shanghai Sekisui Holy Plastics （Functional Materials）Obtained the management right of Korean Young Bo Chemical　　　　　　　　　　　　　　　　（Functional Materials）Establishment of Sekisui （Qingdao）Plastics Co. (Functional Materials）Establishment of Wuxi SSS-Diamond Plastics Co., Ltd. （ＥＦ fittings）　　　　　　　　　　　　　　　　　　　　etc.

Positive Development in Positive Development in AutomotiveAutomotive--related related

Business etc.Business etc.

Expansion of NL Plant （Interlayer Film）

Construction of PVB Resin PlantCapital participation in Zotefoams 　　　　　(Functional Materials)

Establishment of a Holding Company （SEKISUI EUROPE BV)　　 etc.　　　　　　　　　　　　　　　　　　　　　　　　　　　　

EuropeEurope U.S.A.U.S.A.AsiaAsia

Establishment of a Holding Company(SEKISUI AMERICA CORPORATION)

5

9

Investment and FinancingAreas：China & EuropeApplication Fields:IT & Automotive-related Materials

Preceding studies on Technologies

Growing seeds for the future

Studies on the technology for comfortable living

Studies on the restoring & recycling technology of Piping lines

Studies on the FPD & Semi-conductor Materials

10

6

11

General ManagerCorporate Finance, Accounting and Planning Department

Naofumi Negishi

Financial Statement for FY2003Financial Statement for FY2003

12

■ Number of Consolidated Companies

9

142

End Mar.2003

9Companies in

Equity Method

+3 Newly consolidated, -7 Combined-3 Liquidated, -1 Separated134Consolidated

companies

ChangesEnd Mar.2004

■ Amount influenced by the change of consolidated companies

+29

+3

-3Shanghai Sekisui Holy Plastic 4Korea Yong Bo Chemical 48Sekisui Koki -52Environment General Consultant -2

Total Assets

Operating Income

Sales

(100Mil.yen)

Financial Statement for FY2003

7

13

Financial Statement for FY2003 　　　　Summary of Income & Loss

93

73

166

142

140

168

-38

66

140

2,119

28.2%

2,259

7,997

FY2002

55221Income before tax

1985Investment Income/Loss under equity method

-8854Extraordinary Expense

-1400Extraordinary Income

57150Net Income

-370Corporate income tax etc.


-3-41Other non-ope. Income/Loss


82,126Sales & Gen. Admin. Expenses

0.7%28.9%Rate of Gross Income

982,357Gross Income of Sales

1528,149Sales

ChangesFY2003

(100Mil.yen)

14

-81059-4100-305Eliminated orNot Attributed

911521407,9972318,149Total

4-184-32788-28604Others

19951041,7231231,818HPP

262661,897331,923UIEP

50110533,9991034,109Housing

Ope. Inc.SalesOpe. Inc.SalesOpe. Inc.Sales

ChangesFY2002 ActualFY2003 ActualYear

Sales and Operating Income per Company


(100Mil.yen)

8

15

Analysis on Operating Income(with P.Y.)

91

327

61

-100

-50

0

50

100

Total Increase in Sales Fixed Cost ＣＲ etc.


(100Mil.yen)

16

Analysis on Operating Income（with P.Y.）

110

66(55)

44

SalesChanges from P.Y.2002 ActualFY2003 Actual

53

-5(-5)

58

Ope. Income

10(9)

661(442)

5(4)

727(497)

Living EnvironmentBusiness

(Fami S included)

403,338983,382House Business

503,9991034,109Total

HousingOpe. IncomeSalesOpe. IncomeSales

Financial Statement per Company for FY2003

14178

15

50

-4

-25

0

25

50

Total Increase in no. ofstructures

Fixed Cost CR etc.

Increase in Sales

Housing

Living EnvironmentLiving

Environment

(100Mil.yen)

(100Mil.yen)

9

17

0

26

1511

-25

0

25

50

Total Sales Amount Fixed Cost CR etc.


61,897

FY2002

UIEP2633Ope. Income

261,923Sales

Changes (P.Y.)FY2003


(100Mil.yen)

(100Mil.yen)

18

29

19

1-22

11

-25

0

25

50

Total Increase in Sales Forex Fixed Cost ＣＲ etc.


1041,723

FY2002

HPP19123Ope. Income

951,818Sales

Changes (P.Y.)FY2003


(100Mil.yen)

(100Mil.yen)

10

19

Sales and Operating Income per region

62977109186Asia

3912-5194189U.S.A.

911402311527,9978,149Total

-54-1-28-202-230Eliminated or Not attributed

02202122Others

0202017234251Europe

86103189907,6407,730Japan

ChangesFY2002FY2003ChangesFY2002FY2003

Operating IncomeSales


(100Mil.yen)

20

Non-operating Income/Loss

Sekisui House (+16)196685Income under Equity Method

28

-20

-18

FY2002

Misc. Income (-5)Misc. Expense (+1)-7-27Miscellaneous

Income & Expense

16

4

Changes

44Total

Received (-2), Paid (-6)-14Financial Income

Main Breakdowns FY2003

Financial Statement for FY2003 　

(100Mil.yen)

11

21

Extraordinary Income/Expense


-124124-<Extraordinary Income>Income from the released assignment on the employees’pension fund management

-1616-Income on selling fixed assets

-83223Loss on sales & removal of fixed assets-2828-Revaluation Loss on Securities in Investment

<Extraordinary Loss>

-77-Transfer from Allowance for bad debt

127Increased amount paid for early retirement6324Loss on the disposal of fixed assets due to

reorganization of business

-467731Structural Improvement Expenses

-52

Changes

-2

FY2002

-54Income or Loss

FY2003(100Mil.yen)

22

Total Assets

1.03 times

7,997

7,512

Mar. 2003

1528,149Sales

-1.09 times Turnover Rate of

Total Assets

-247,488Total Assets

ChangesMar. 2004


(100Mil.yen)

12

23

Inventories


ChangesMar. 2003Mar. 2004

4 (1)293297ProductsOthers

15 (18)135150Other Inventories

48 (48)761809Total

Housing

41(41)

-12(-12)

233274Other Inventories

10088Land for sale

* The figures in “( )” show the amount excluding the newly-consolidated increments.

(100Mil.yen)

24

Interest Bearing Liabilities

1,938863253

1250571

Mar. 2003

-4071,531Total

ChangesMar. 2004

-35827Long-term Loan-2251Bond-01Bond redeemable in one year

-20050C P-169401Short-term Loan


(100Mil.yen)

13

25

Consolidated Cash Flow

1,938

227185

-112-370

-211471

FY2002

=Sales Activity CF+Investment Activity CF-Dividend paid

1,531Balance of Interest bearing Liability

415Free Cash Flow

225Term-end Balance of Cash & Cash Equivalent

40Increment in Cash & Cash Equivalent

-405Cash Flow from Financial Activities

-131Cash Flow from Investment Activities

579Cash Flow from Sales Activities

FY2003


(100Mil.yen)

26


-85547-127361UIEP

-9251242-18284266Total-528234610Eliminated or

Not attributed

-31612-72922Others20106125998107HPP

-134734-117867Housing

ChangesFY2002FY2003ChangesFY2002FY2003Capital ExpenditureDepreciation

Depreciation & Capital Expenditure(100Mil.yen)

14

27

17,329

2,858

End Mar. 2003

-342*16,987Consolidated

-3052,553Non-consolidated

ChangesEnd Mar. 2004

* Assuming that number of subsidiaries are on the basis of FY2002, the employees would be 16,855 persons, which means the reduction of 474 persons in real terms.

(No. of persons)

Situation of Employees for FY2003

28

Profit Plan for FY2004

114221335Income before Tax4570115Corporate Income Tax etc.

08585Investment Income/Loss under Equity Method

70150220Net Income

9-54-45Extraordinary Income105275380Recurring Income-14-41-55Other Non-operating Income/Loss

119231350Operating Income242,1262,150Sales and Gen. Admin. Exp.

0.5%28.9%29.4%Rate of Gross Income1432,3572,500Gross Income of Sales3518,1498,500Sales

ChangesFY2003FY2004(100Mil.yen)

15

29

Sales & Operating Income per Company


0550-3050-250Eliminated or Not attributed

1193512318,1493508,500Total

-2-104-28604-30500Others

271321231,8181501,950HPP

3777331,923702,000UIEP

571911034,1091604,300Housing

Open.Inc.SalesOpen.Inc.SalesOpen. Inc.SalesChangesFY2003 ActualFY2004 PlanYear

(100Mil.yen)

30


119

-30

24

125

-50

0

50

100

150

Total Increase in Sales Fixed Cost ＣＲ etc.


(100Mil.yen)

16

31

Profit Plan for FY2004 per Company

4557

-22

24

-8

18

-50

0

50

100

Total Increase in no. ofstructures

Fixed Cost CR etc.

Housing

Analysis on Operating Income(with P.Y.) （100Mil. yen）

191

73(53)

118Sales

Changes (from P.Y.)FY2003 ActualFY2004 Plan

103

5(4)

98Open. Inc.

10(6)

727(497)

15(10)

800(550)

Living Environment Business

(Fame S business included)

473,3821453,500House Business

574,1091604,300Total

HousingOpen. Inc.SalesOpen. Inc.Sales

(100Mil.yen)

Living Environment

LivingEnvironment

Increase in Sales

32

18

37

145

-25

0

25

50

Total Sales Amount Fixed Cost CR etc.


Analysis on Operating Income(with P.Y.)（100Mil. yen）

373370Open. Inc.UIEP 771,9232,000Sales

Changes (from P.Y.)FY2003FY2004

(100Mil.yen)

17

33

4427

-14 -14

11

-25

0

25

50

Total Increase inSales

Forex Fixed Cost CR etc.


Analysis on Operating Income(with P.Y.)（100Mil. yen）

27123150Ope. Inc.HPP 1321,8181,950Sales

Changes (from P.Y.)FY2003FY2004

(100Mil.yen)

34

Plan for FY2004

3237240Research &

Development Expenses

10266276Depreciation

58242300Capital Expenditure

-23115311300Balance of Interest Bearing Liability at

term-end

ChangesFY2003FY2004

(100Mil.yen)

18

35

Company PresidentTomohiko Yasuda

Housing CompanyHousing Company

“Prominence in Environment-friendliness”

36

3338 3382 3500

661 727800

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

FY2002 FY2003 FY2004 Plan

Fami S (included)Living Environment BusinessHousing Business

Trend of Sales and Operating Income

39993999 41094109

442

The Houses with “No Utility Charges” pulling Our Business in FY2003

43004300

497 550

145

98

58

15

5

-5-20

0

20

40

60

80

100

120

140

160

180

FY2002 FY2003 FY2004 Plan

Fami S (included)Living Environment BusinessHousing Business

5353

103103

160160

SalesSales Operating IncomeOperating Income

-5

4

10

(100Mil.yen)(100Mil.yen)

19

37

41343948

36833785

4035

2933

48

7774

65

24

32

5046

1000

1500

2000

2500

3000

3500

4000

4500

FY2001 FY2002 FY2003 FY2004 Plan0102030405060708090

Total Orders Tiled House RatioAll Electrification Ratio Solar Generator Mounted Ratio

Trend of Housing Order-TakingThe houses with no utility chargesThe houses with no utility chargesare smoothly put on the market.are smoothly put on the market.

Housing Starts Bottomed OutHousing Starts Bottomed Outin FY2003in FY2003

(%)

The Houses with “No Utility Charges” pulling Our Business in FY2003

(100Mil.yen)

38

Differentiation by thorough appeal of “Environment”

Start tackling the issue of “Zero Emission” activities in Fami S business.

Investment in Human ResourcesIncrease in Sales PersonnelReinforcing Education & Training

Enhancing Profitability by Standardized Production and Enhancing Profitability by Standardized Production and InstallationInstallation

Securing High QualityPromotion of CR

Intensive challenge toward the improvement in CS and Compliance

Establishing the Momentum of Increasing Sales and Profitability for FY2004

Aiming at Aiming at ““3,000 persons3,000 persons”” structure in FY2005structure in FY2005

No Utility ChargesNo Utility ChargesEnvironmentEnvironment LCC(LCC(Life Cycle Cost)Life Cycle Cost)

20

39

c.1975~c.1985 c.1975~c.1985 The period of getting own houseThe period of getting own house

c.1896~c.2000c.1896~c.2000The period of expanding floor spaceThe period of expanding floor space

All-out Differentiation under “Prominence”

ConstructionConstruction SystemSystemPhysics &Physics &ChemistryChemistry

Machinery & Machinery & ElectricityElectricity

LeadingLeading--edge Technologyedge Technology　　““Unit SystemUnit System””

Prominence

Seeking for AmenitySeeking for AmenityReducing the Load to EnvironmentReducing the Load to Environment EconomyEconomy

A New Model with No Utility Charges「Parfait AE」

Apr. 2004 on the market

circa 2000 ~ The period of seeking for “Comfortable Living”

-- Changes in Housing Market Changes in Housing Market --

The First Step: Warmed Surroundings (All Heated Rooms)

40

Strengthening Competitiveness in the Detached Housing SalesReinforcing Sales Power

Reinforcement in Product LinesIncrease in Sales PersonnelPerfection of the internal qualification system for sales personnelSales to be supported by ECO Heim Promotion Dept.

Expansion of Object Markets

Reinforcing Business in Apartment & Rental Housing

Continuing our concern in the customers without land.

Aiming at “3,000 persons” structure in FY2005

Orders to be received in FY2004=115% of FY2003

Housing Business

Solar GeneratorSolar Generator Tiled WallTiled Wall All ElectrificationAll Electrification Heat Insulation EfficiencyHeat Insulation EfficiencyZero EmissionZero Emission ReRe--use Systemuse System Loan for the models of Loan for the models of ““No Utility ChargesNo Utility Charges””

Appealing Appealing ““EnvironmentEnvironment””, , ““LCCLCC”” & & ““No Utility ChargesNo Utility Charges””

Putting on the market a new model with “No Utility Charges”

On my thinking about ECOLOGY, I have become ECONOMY

I'm

Eco Heim

21

41

Further Enhancement of Profitability and Continued Expansion

Housing Renovation BusinessImproving CS by Thorough Long-term Support System (60years)

Improvement in the quality and frequency of the periodical check on customers’ houses.Improving the function of communication with customers

Increase in Sales per CapitaPerfection of Environment-conscious Menu (Solar Electric Generator etc.)Enhancing Education and Training

Start tackling the issue of Zero EmissionReal Estate Business

Enhancing the business supporting the change of houses (Used-house Circulation)

Living Environment Business Operating Income for FY2003 500 mil.yen Planned Operating Income for FY 2004　

1,500 mil.yen

Planned sales for FY2004=110% of FY2003

42

Heat insulation effect available only by the Unit Construction Method

The Effect brought by High-performance appliances and the Total Electrification.

“Energy Creation” effect realized by Solar Generation

Amount of selling electricity in daytime

> Amount of purchasing electricity

The roofing specifications accommodating the high-performance Solar Electric Generator.

High-performance water-heaterTotal electrification specifications with economical off-peak electricity.

Our standard specifications have cleared the energy saving requirements for the next generation.The structure of superb heat-insulation and air-tightnessDesign performance has been surely attained owing to the house making in a factory.

Solar Electric Generating System

=

Total Electrification

High Air-tightness & Heat Insulation

For your Reference : The House of “No Utility Charges”

22

43

Company PresidentToyoo Manabe

Urban Infrastructure Urban Infrastructure & &

Environmental Products CompanyEnvironmental Products Company

Aiming at “ An Environmental Solution Company”

44

6

70

100

33

-30

1.7%

-5.6%-4.1%

7.0%

-0.1%

-50

0

50

100

150

2001 2002 2003 2004 2005

-5.0%

0.0%

5.0%

10.0%

15.0%

Aiming at Aiming at ““ An Environmental Solution CompanyAn Environmental Solution Company””

１）１）By the drastic reformation of the By the drastic reformation of the

Portfolio, we will achievePortfolio, we will achieve

　　　　ROA 7%ROA 7%　　

Operating Income 10 b. yenOperating Income 10 b. yen

２）２）By the early startBy the early start--up of the up of the

Environmental Solution Business, Environmental Solution Business,

we will establish the 40 billion yen we will establish the 40 billion yen

business in the three fields.business in the three fields.

３）３）With the key words With the key words ““SYSTEMSYSTEM””

and and ““GLOBALGLOBAL””, we will structure , we will structure

a new business model. a new business model.

　　　　

MediumMedium--Term PolicyTerm Policy MediumMedium--Term TargetsTerm Targets

Operating Income

（100Mil.yen）

ROA（Right scale）

23

45

Expansion of the Growth & New BusinessesSmooth Expansion of Restoration Pipe Business

Enhanced the profitability of the Core BusinessOperating Income improved by 1.5 b.yen from P.Y.

Drastic Improvement in unprofitable businessesAchieving profitability in all the businesses

Withdrawal from some businesses　

Restructuring of businesses　

　　　　　　　　

Sales for FY2003Sales for FY2003　　4.6 b.yen4.6 b.yen　　（　　（from P.Y.from P.Y.　　153153％）％）

The Results of FY2003

Operating income got into the black.Operating income got into the black.

Aqua-system　　　　→Growth business

The Earth Business

Home EnergyFFU

Operating IncomeOperating Income

＋2633Total

-8-22Strategic Investment

＋143

FFURoofing Materials

Aqua-systemHome-TechnoHome Energy

Earth

Unprofitable

＋513Plant Materials

Power & InformationReinforced PipeTouto Sekisui

Secured Profitability

＋1553Water supply & drainage sys.Building Materials

Core Business

＋2-13Environ. & Civil Eng.

New BusinessWood

Growth & New

Improvementfrom P.Y.FY2003Divisions

(100Mil.yen)

46

Results of FY2003Progress in the Portfolio Reformation　

　　　　　　　　

UnprofitableGroup Ⅲ

0～5％Group Ⅱ

more than 5％Group Ⅰ

Recurring Income Rate

189.7 189.7 b.yenb.yen 192.3 192.3 b.yenb.yen

FY2002 FY2003

Group Ⅰ

13％

Group Ⅱ

81％

Group Ⅲ

6％Group Ⅰ

9％

GroupⅡ

47％

Group Ⅲ

44％

24

47

Shifting to the growth phase with our enhanced prominence for tShifting to the growth phase with our enhanced prominence for t he realization of he realization of ““An Environmental Solution CompanyAn Environmental Solution Company””

Policy for FY2004

Main Items of Implementation for FY2004Further enhancement of business profitability

　　　　　　　　　　for the step-out toward a new growthReinforcing the profitability of the core business(Structuring No.1 profitability in the industry)Reinforcing the business basis for the stable profitability(Making a scenario for the core business)Expanding growth areas & new businesses

Promotion of CS Strategy linked with Business ActivitiesRealization of the Customer Contact Center

Implementation of Environment-conscious ManagementIncreasing the sales of environment conscious productsImproving the environmental performance(Reduction in CO2&waste materials)

48

With further enhanced business profitability　　　　　we are taking steps toward the Growth

Operating Income Plan　　　　　　　　　

+776+1669Water supply & drainage sys.Building Materials

Core Business

+628+722

Plant MaterialsPower & Information

Reinforced PipeFFU

Roofing MaterialsHome-Techno

Secured

Profitability

70-21

0

2004

+37　 +2

+11

Improvementfrom P.Y.

±0-21Strategic Investment

+30100Total

+1717Environ. & Civil Eng.

New BusinessWood

Growth&

New

Improvementfrom P.Y.2005Divisions

(100Mil.yen)

25

49

Enhancing Profitability of the Core Business　　　（Structuring No.1 profitability in the industry）

Main Items of ImplementationIncreasing selling prices of main PVC products（PVC pipe and Decks）

Implementing the reformation plan for distribution（Improvement in Sales Productivity and the New Distribution Strategy）

Implementing the Cost-down Strategy　　　　

Further Enhancement of Business Profitability

Operating Income　6.9 b.yen(+1.6 b.yen from P.Y.)

Securing a prominent position with Design, New Materials and Competitive Cost

Building Materials

Securing a prominent position with No.1 profitability in the industry.

Water supply & drainage system

““ProminenceProminence””DivisionsDivisions

50

“Prominence” in Engineering works technique and Evaluation SkillsHome-Techno

“Prominence” in Comfortable & Reliable product quality, Sales Quality and Installation Quality.Roofing Materials

“Prominence” in proposing to customersFFU

“Prominence” in the capability of technical proposals to customersReinforced Plastic Pipe

“Prominence” as a leader in the environment-conscious business （The project for the underground power lines)

Power & Information Infra.

Securing the “Prominence” in IT field in the worldPlant Materials

““ProminenceProminence””DivisionsDivisions

Reinforcing the business basis for the stable profitability　　　　　　　　　　　　　　　　　　　　　　((Making a scenario for the core business) 　　　　

Operating Income　2.2 b.yen(+ 700 mil.yen from P.Y.)

Further Enhancement of Business Profitability

26

51

WoodWood Water EnvironmentWater Environment

Pipe RestorationPipe Restoration

＜Environmental Solution Business＞Securing Securing ““ProminenceProminence”” in SPR Installation Technology and System Engineeringin SPR Installation Technology and System Engineering

　①Brushing-up the pipe restoration core technology （Automatization/Speed-up）　②Business Expansion with SPR （Korea & U.S.A.）

Securing Securing ““ProminenceProminence”” in Cascade Technology and Recycling Technologyin Cascade Technology and Recycling Technology

　①Starting-up of REW Business（Working on Business Plan and Investment）　②Enhancing competitiveness in the Wood-Resin Composite Technology （EX Bd）

Securing Securing ““ProminenceProminence”” in Water Environment Solution Businessin Water Environment Solution Business

　①Starting-up of new model（Restoring the water system in condominiums and Industrial

Effluent Operation）　②Expansion of Aqua Civil Engineering and Sinklear

7 7 b.yenb.yen

24 24 b.yenb.yen

Expanding Growth Area & New Businesses 1Expanding Sales of Environmental Solution Business

Stepping-out toward a New Growth

FY2003　26 b.yen　⇒　FY2004 31 b.yen

52

Wuxi

Qingdao

Stepping-out toward a New Growth

FY2004 Overseas Sales RateFY2004 Overseas Sales Rate　　55％％

FY2004 China SalesFY2004 China Sales　　2 b.yen2 b.yen

Specializing in the development Specializing in the development related to the Environmentalrelated to the Environmental

Solution BusinessSolution Business

Expanding Growth Area & New Businesses 2Speeding-up the Global Expansion

Proceeding businesses in China　　－Putting the determined businesses to a stable path（Sekisui Qingdao, Wuxi SSS-Diamond Plastics）

　　－Studying the new businesses（Piping System in Buildings & RCP）

Overseas Expansion of the Pipe Restoration Business

Expansion of New Business and New Products

CF, Z-FoamAcceleration of starting-up the business on SS ProjectExpansion of System Piping Businesses　　　　　　（PEX System, Drainage Header Parts）

Sales Expansion of High weather resistant rain gutter and Low Elongation rain gutters　　　　　　　　　　　　　　　　

27

53

Environment conservation :Circulation of penetrated water

Measures against flood:Controlling Outflow

Water utilization ；Measure for drought、water-saving

Securing water under emergency

Features of the SystemFeatures of the System

Piled pipe unit

Meeting plot size　・　Easy installation

Sprinkling & Car wash etc10% Toilet

24%

Bath24%

Washing24%

Cooking24%

Establishment of the law for counter-measuring floods in the specified cities （2003.6）Availability of Subsidy system in local governments

No. of days before recovery:　Electricity ：3days　Water：30daysAnxiety over possible Tokai and Nankai earthquakes

Water usage 250 L/D・capita

WaterWater--circulation Piping System in a housecirculation Piping System in a house

Saving in 7 years the water equivalent volume to the Lake Biwa

Overflow

Car Wash

Sprinkling

Penetration

Outflowcontrol

Bath

Toilet

Storage & purification

Rain water drain

Misc. waterPurified water

Outflow control, Penetration

Emergency water

Storage, Purification and Utilization of Rain water

Automatic discharge of waste

Clean water

Low Maintenance

Purifying function

Overflow

SterilizationPh Adj.

Water

utilization

Filter

53

54

28

55

High Performance Plastics CompanyHigh Performance Plastics Company

“ Chemistry for your Win”

Company PresidentGen Endo

56

“Chemistry for your Win”Company Concepts

Intermediate Materials with business proposals--- The Gathering of Solution Businesses

　　1．Growth Strategy　　　　　～Bundles of Strong Businesses～　　2．Structural Reformation　　～Coping with the changing market～

Grp.ⅡGrp.Ⅱ

Grp.ⅣGrp.Ⅳ

Grp.ⅠGrp.Ⅰ

Grp.ⅢGrp.Ⅲ

（Enhancing Competitiveness）

（Business Expansion）

（Alliance &Company Separation)

（Shifting toGrowth Field）

Grow

th

↑High

High→Technology power

Business PortfolioBusiness Portfolio Portfolio CriteriaPortfolio Criteria

Within Income after Tax5％Grp.Ⅳ

　＊ROA　：Income before tax／Total assets

Within Ordinary Depreciation10％Grp.Ⅲ

Within Cash Flow10％Grp.Ⅱ

Strategic Management15％Grp.ⅠROA

Investment YardsticksTarget for ‘05

29

57

1835 17231818

1950 2000

0

500

1000

1500

2000

2500

'01 '02 '03 '04 '05

40

104123

150

200

12.0

-0.3

5.16.2

7.8

0

50

100

150

200

250

'01 '02 '03 '04 '05-5

0

5

10

　Operating Income

ROA

Trend of Consolidated Profit & LossChanged to a growth line from FY 2003

(100 Mil. Yen) (%)SalesSales Operating Income & ROAOperating Income & ROA

“Chemistry for your Win”

(100 Mil. Yen)

58

510 570 640 770

160 160

540 530590

600

540 390390

330

700

150190

160

620

400

0

500

1000

1500

2000

'01 '02 '03 '04 '05

Selection and Expansion of Business PortfolioTrend of ROATrend of ROA Trend of SalesTrend of Sales(%)

(100Mil.yen)

G.Ⅲ

G.Ⅱ

18351723 1818

20001950

G.Ⅳ

G.Ⅰ

“Chemistry for your Win”

<10%>

<10%>

<5%>

<’05Target　15%>

FilmPrecision-Ind.Life-tech.

Packaging TapeFunctional Materials

Sign SystemAdhesives

Fine ChemicalChemical Specialty

Industrial Tape

MedicalInterlayer Film

12.07.86.2Company Total

6.32.71.7

Grp. IV

　

13.17.06.3

Grp. III　

20.08.25.0

Grp. II　

25.822.623.8

Grp. I　

‘05‘04‘03BU

30

59

213160

246 251166

241

Asia Europe U.S.A.'03 '04

11．．Expansion of Overseas BusinessExpansion of Overseas Business

305 348444

132143

170230

470473

190

34%34%

29%

24%

35%

'01 '02 '03 '04 '05

Overseas SalesOverseas Sales

Export

Overseas Ratio

Overseas Business

Production LocationsProduction Locations

＜Sales per Region＞

491436

614700

663

Rate of Overseas Income 57%

Growth Strategy

18161312Total

6555U.S.A.

4333Europe

8(4)

8(4)

5(1)

4(1)

Asia & Oceania

（Incl. China）

‘05‘04‘03‘02

－Overseas Sales 70 b.yen, Overseas Ratio 35%

60

22．．Transformation of Business ContentsTransformation of Business Contents－Entering the leading-edge & growth Areas

173140 170303

673413101117202

43% 51%51% 55%52%

'01 '02 '03 '04 '05

A-type New ProductsA-type New Products

476303

237174130

Growth Strategy

Enhancement of Environmental functional materials & Reformation materials.230210180

Functional Bldg. Materials(BD250)

51%49%46%Sales Ratio (Total)

400

120

170

‘03

Global Expansion of Interlayer film & functional materials ; Industrial adhesive tapes420360Automotive (AT500)

Overseas Development & Alliance (Blood related prod.)130120Medicals (MD200)

Development of Liquid Crystal & Mounted Materials; Speed-up of Market Development220130

Electronics Information Materials (IT300)

Measures‘04‘02＜Four Main Areas＞

Super-A

31

61

Important Business Area

Liquid Crystal Display Materials

Semi-conductor related Materials

Present Main Products

Fine Particle Products（Spacer & Electro Conductive Fine Particles）

Binder for ceramicsSemi-conductor processing materials (Temporary adhesion)

Product Groups to be enhanced & expanded

Chemical Materials for Liquid crystal TVElectro Conductive Fine Particles (for ACF)Light sensitive resin(UV-sealing material & photo resist)Optical Film (Retardation Film & Brightness improving Film)

Very thin wafer processing materials & Semi-conductors binding materials (Permanent adhesion)　Selfa(Very thin material processing tape, Dicing tape)　Mount-binding materials(NCF,DAF, Resin core welding

ball)

Growth StrategyExpansion of IT FieldExpansion of IT Field

80 105140

1852530

40

60

2535

40

55

0

100

200

300

400

'02 '03 '04 '05

Sales

（hundred Mil..yen

）

＜Trend of Sales per field＞

300220

170130

Semi-conductor related Materials

Liquid Crystal Display Materials

62

Directing Film

　UV Sealing Agent　

Color Filter

Glass Substrate　Retardation Film

Polarization Board

Conductive Particles

　Spacer

Anisotropic Conductive Film（ＡＣＦ）

Driver LSI

　Conductive Particles（for ACF）

Printed Substrate

Controlling IC

　Wave Sheet　（High Luminance Film)

Light Guiding Board

Diffusion Board

Materials for Liquid Crystal Display

The Film for Liquid Crystal DisplayThe Film for Liquid Crystal Display Chemical Materials for LCDChemical Materials for LCD

32

63

Thin Film Processing Tape［Selfa　Back Grind］［Selfa Dicing］

DAF（Die Attach Film）

NCP, NCF(Non-Conductive Paste )( Non-Conductive Film）

Plastic cored solder ball [SOL]

Semi-conductor related materialsSilicon Chips

64

Some of the displayed data such as Prospects, Plans and Forecasts, that are not past results, have been worked out on the inference of our management with reference to currently available information. Therefore, please keep it in mind that the actual results of our business could become largely different from our plans and forecasts etc. depending on changes in various material factors.

1. Main data in Housing businessFinancial year 2003 Financial year 2002 2001

FH SH FH+SH FH SH FH+SH FH+SHSales (in 100 Million yen) 2,019 2,090 4,109 1,999 2,000 3,999 4,159 Housing 1,663 1,719 3,382 1,678 1,660 3,338 3,640 (Houses) (1,614) (1,657) (3,271) (1,624) (1,609) (3,233) (3,534) (Land) (49) (62) (111) (54) (51) (105) (106) Living environment 357 371 727 321 340 661 519 (Reforming) (245) (252) (497) (212) (230) (442) (336) (Interior-Exterior) (21) (25) (46) (18) (22) (40) (32) (Real estate) (91) (94) (184) (91) (88) (179) (151) 1. Number of houses sold (unit) 7,650 8,460 16,110 7,680 8,160 15,840 17,540 Detached houses 6,080 6,190 12,270 6,240 6,010 12,250 13,770 (Heim) (4,330) (4,420) (8,750) (4,460) (4,320) (8,780) (9,380) (Two-U Home) (1,750) (1,770) (3,520) (1,780) (1,690) (3,470) (4,390) Apartment 1,570 2,270 3,840 1,440 2,150 3,590 3,7702. Main data Price<Sales subsidiaries-Detached Ho.> 27.4 27.1 27.3 27.3 27.2 27.3 27.4 /unit (Mil.yen) Price<Sales subsidiaries-Detached Ho.> 65 66 65 63 64 64 63 /Tsubo(3.3m2)(10thou.yen) Floor space(m2) 140 137 138 143 140 142 143 Exhibition places (unit) 509 - 487 543 - 531 550 Sales staff (no. of persons) 2,588 - 2,490 2,662 - 2,565 2,654 Replacement ratio(%) 39 40 40 40 40 40 44 Introduction sales ratio(%) 30 29 30 31 30 30 32

2. Housing order intake (Unit : Mil. Yen)Financial year 2004 Financial year 2003 Financial year 2002

FH Plan SH Plan Plan2004 FH SH FH+SH FH SH FH+SHBacklogs at beginning 161,900 169,000 - 148,500 156,600 - 151,727 148,000 - Growth rate 9% 8% - -2% 6% - -7% 2% -New orders 203,600 209,800 413,400 196,118 198,692 394,810 181,677 186,649 368,326 Growth rate 4% 6% 5% 8% 6% 7% -3% -3% -3%Sales of houses 196,500 201,800 398,300 188,018 193,392 381,410 185,404 186,149 371,553 Growth rate 5% 4% 4% 1% 4% 3% -10% 1% -5%Backlogs at the end 169,000 177,000 - 156,600 161,900 - 148,000 148,500 - Growth rate 8% 9% - 6% 9% - 2% -2% -

3. Housing starts (1,000units)Financial year 2003 Financial year 2002 2001

FH SH FH+SH FH SH FH+SH FH+SHHousing starts 603 565 1,168 598 548 1,146 1,173Privately-owned houses(=A)(included in above) 207 164 371 199 167 366 377Sales by our company 8 8 16 8 8 16 18Detached house sales by our co. (=B) 6 6 12 6 6 12 14Our share in detached houses (=B/A) 2.9% 3.8% 3.3% 3.1% 3.6% 3.4% 3.7%

4. Order intake of houses with additional specificationsFinancial year 2003 Financial year 2002 2001

FH SH FH+SH FH SH FH+SH FH+SHSolar electric generators installed 47% 50% 46% 30% 34% 32% 24%Special walling tiles (Heim type JX) 33% 38% 35% 28% 31% 29% 33%Totally electrified model 73% 76% 74% 62% 68% 65% 48%

OTHERS

Housing Company Results

CONSOL

financial statement for fy 2003 - sekisui chemical · spiritual climate of an enterprise cs quality...

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