Q4 2023 Financial Results
(April 2023 to March 2024)
APRIL 30, 2024
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Agenda
1 | Overall Summary | • | Key Takeaways |
• | Summary:FY23 Result | ||
2 | Results | • | Results - YoY, QoQ |
• | Digital Solutions Business | ||
3 | Segment Data | ・Revenue Growth Rate | |
• | Life Sciences Business | ||
• | Plastics Business | ||
4 | Outlook | • | Market Outlook |
• Act vs FY23 Consolidated Earnings Forecast | |||
5 | Appendix | • Overall Statement of P/L | |
• | Statement of Financial Position | ||
• Statement of Cash Flows | |||
• | Quarterly Trends by Segments |
*Note
DS | :Digital Solutions business |
SEMI | :Semiconductor materials |
DISP | :Display materials |
EC | :Edge Computing |
LS | :Life Sciences business |
PLA | :Plastic business |
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1. Key Takeaways
- TOB completed. Accelerate flexible strategic investments, structural reforms, and industry restructuring.
- JSR's vision remains unchanged. Strive for sustainable value creation as a world-leading technology company.
FY23 Results | • | Profit decreased significantly due to SEMI's downcycle (YoY sales -6%), continued strategic investments, and |
restructuring of LS. | ||
YoY Decrease in Revenue /Profit | • | Special factors were accounted for LS in Q1 and Q4. |
• | DS: SEMI was definitely on a recovery trend after bottoming out in Q4, FY22 (YoY of Q4 sales improved by more than | |
double digits). Our market share of EUV is expanding in advanced logic and memory markets. MOR business is also | ||
progressing. We expect significant contributions in the full-scale semiconductor growth cycle in FY25 and beyond. | ||
Outlook | • | LS: As we expect a strong mid- to long-term growth of LS, we continue to see double-digit growth with CDMO despite |
the current weak biotech market environment. Results of structural reforms, including business restructuring and | ||
operational strengthening, will contribute after FY24. | ||
• | Although we view FY24 as a conservative business environment while riding the recovery trend, we will promote | |
strategic actions in flexible manner. | ||
• | On April 17, 2024, we announced the completion of the TOB by aiming for the strategic partnership with JICC. We will | |
Strategic Partnership | go through a squeeze-out process and make a new start as a private company. | |
• | We will accelerate strategic actions of each business through the strategic partnership with JICC. At the same time, we | |
with JICC | will aim to reorganize the semiconductor materials industry, strengthen the international competitiveness of our | |
Announced on | domestic industry, and acquire a foundation for sustainable contribution to the global semiconductor industry. | |
• | We plan to relist in the future. Our policy of fulfilling corporate responsibilities, such as creating value for all | |
June 26,2023 | ||
stakeholders and contributing to a sustainable society, will remain unchanged and will make its governance even more | ||
robust. | ||
We will disclose the status of business performance by any channels, such as corporate website and briefings. Thank you for your continued support.
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1. Summary:FY23 Result
Core OP YoY (Bn JPY)
FY23 Act: Revenue 404.6bn, Core OP 8.3bn
Special Factors (-15)・Accounting Factors ・Major Repairs
・Allowance for inventories and write-offs
・Allowance for bad debts etc.
FY22 | DS | LS | PLA OTH FY23 |
YoY
Digital Solutions Business
• | Decrease in sales due to lower demand caused by the semiconductor cycle. | |
SEMI | • | Conducted initiatives such as EUV/MOR investment and business |
augmentation in Asia. |
- For DISP, increased in revenue and OP due to a recovery in panel
DISP/ manufacturer utilization.
EC | • EC performance was impacted by a decline in smartphone demand, resulting |
in revenue decrease from the previous year. |
Life Sciences Business
- Revenue increased due to CDMO's sales expansion while OP declined due to special factors.
Plastics Business
- Automobile demand is trending towards recovery while demand for other applications is slowing down, which led to a decline in sales.
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2. Result - YoY, QoQ
FY22 | FY23 | YoY | |||
Revenue | 408.9 | 404.6 | -1% | ||
Consolidated | Core Operating Profit | 34.0 | 8.3 | -75% | |
Operating Profit | 29.4 | 3.6 | -88% | ||
Profit, attributable to owners of parent | 15.8 | -5.6 | - | ||
Revenue | 170.4 | 168.1 | -1% | ||
Semiconductor materials | 126.4 | 118.9 | -6% | ||
Digital Solutions | Display materials | 36.6 | 42.5 | +16% | |
Edge computing | 7.5 | 6.7 | -10% | ||
Core Operating Profit | 27.8 | 20.3 | -27% | ||
Life Sciences | Revenue | 126.5 | 129.7 | +3% | |
Core Operating Profit | 8.4 | -7.7 | - | ||
Plastics | Revenue | 95.8 | 92.8 | -3% | |
Core Operating Profit | 1.9 | 1.5 | -21% | ||
Others/Adjustment | Revenue | 16.2 | 14.0 | -13% | |
Core Operating Profit | -4.1 | -5.6 | - | ||
Exchange rate (USD/JPY) | 135 | 145 | +7% |
(Bn JPY) | ||||
23Q3 | 23Q4 | QoQ | ||
121.1 | 102.8 | -15% | ||
15.9 | -6.5 | - | ||
15.6 | -9.3 | - | ||
7.5 | -10.9 | - | ||
44.1 | 44.5 | +1% | ||
31.4 | 32.4 | +3% | ||
10.8 | 10.7 | -1% | ||
1.9 | 1.4 | -28% | ||
7.7 | 4.0 | -48% | ||
48.9 | 32.2 | -34% | ||
8.3 | -7.9 | - | ||
24.4 | 22.6 | -7% | ||
0.8 | 0.3 | -66% | ||
3.7 | 3.5 | -5% | ||
-0.9 | -2.9 | - | ||
148 | 149 | +0% |
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3. Segment Data: Digital Solutions Business
FY22 | FY23 | YoY | YoY | ||
(CER)* | |||||
Revenue | 170.4 | 168.1 | -1% | -4% | |
Semiconductor materials | 126.4 | 118.9 | -6% | -10% | |
Display materials | 36.6 | 42.5 | +16% | +15% | |
Edge computing | 7.5 | 6.7 | -10% | -10% | |
Core OP | 27.8 | 20.3 | -27% | -36% | |
Core OP margin | 16.3% | 12.1% | |||
Exchange rate(USD/JPY) | 135 | 145 | +7% | 0% |
(Bn JPY) | ||||
23Q3 | 23Q4 | QoQ | ||
44.1 | 44.5 | +1% | ||
31.4 | 32.4 | +3% | ||
10.8 | 10.7 | -1% | ||
1.9 | 1.4 | -28% | ||
7.7 | 4.0 | -48% | ||
17.5% | 9.0% | |||
148 | 149 | +0% |
Core OP analysis (Bn JPY) | QoQ |
YoY |
SEMI decreased (-)
DISP increased (+)
FX (+)
Raw material price (-)
Upfront Investment for EUV/MOR, etc. 4 (-) Consolidation of new subsidiary in Asia and site expansion 2 (-)
Control on existing investments 2(+), FX, etc.(-)
Accounting factor, etc. (+)
SEMI increased (+)
FC incurred difference (-)
Write-off(-)
Accounting factor, etc. (-)
*MOR: Metal Oxide Resist
*Reference data: CER (Constant Exchange Rate. Excluding FX impacts) | 6 |
3. Digital Solutions Business - Revenue Growth Rate
Semiconductor materials
Display materials
Edge computing
YoY ytd | QoQ | |
EUV | Slightly under +5% | Approx. +15% |
ArF | Approx. -5% | Approx. +5% |
Multilayer | Slightly under -10% | Slightly decreased |
Other Lithography | Approx. -5% | Slightly increased |
CMP | Approx. +5% | Slightly decreased |
Cleaner | Approx. -50% | Approx. +20% |
Packaging | Approx. +15% | Flat |
Alignment Films | Slightly over +5% | Slightly under +10% |
Passivation Coat | Approx. +45% | Slightly under +10% |
Color Pigmented Resists | Flat | Approx. +55% |
OLED Materials | Approx. +55% | Approx. -10% |
ARTON | Approx. -10% | Slightly under -30% |
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3. Segment Data : Life Sciences Business
FY22 | FY23 | YoY | YoY | ||
(CER)* | |||||
Revenue | 126.5 | 129.7 | +3% | -2% | |
CDMO | 64.6 | ||||
24.3 | |||||
CRO | |||||
BPM | 1.9 | ||||
39.0 | |||||
IVD | |||||
Others/Adjustments | 0.1 | ||||
Core OP | 8.4 | -7.7 | - | - | |
Core OP margin | 6.7% | - | |||
Exchange rate(USD/JPY) | 135 | 145 | +7% | 0% |
(Bn JPY) | ||||
23Q3 | 23Q4 | QoQ | ||
48.9 | 32.2 | -34% | ||
17.7 | 18.8 | +6% | ||
6.9 | 5.9 | -15% | ||
0.5 | 0.5 | -11% | ||
23.9 | 7.2 | -70% | ||
-0.1 | -0.1 | - | ||
8.3 | -7.9 | - | ||
16.9% | - | |||
148 | 149 | +0% |
Core OP analysis
YoY
Revenue | Core Operating Profit | |
Total | +3% | - |
CDMO | Slightly over +25% | Decrease in OP |
CRO | Slightly under +5% | Decrease in OP |
BPM | Slightly over -60% | Decrease in OP |
IVD | Approx. -10% | Decrease in OP |
CDMO: Contract Development and Manufacturing Organization of biologics
CRO: Contract Research Organization of pharmaceutical products
BPM: Bioprocess Materials
IVD: In Vitro Diagnostics and Life Science Research
QoQ
Revenue | Core Operating Profit | ||
Total | -34% | - | |
CDMO | Approx. +5% | Decrease in OP | |
CRO | Approx. -15% | Decrease in OP | |
BPM | Approx. -10% | Decrease in OP | |
IVD | Approx. -70% | Decrease in OP |
*Reference data: CER (Constant Exchange Rate. Excluding FX impacts) | 8 |
3. Segment Data : Plastics Business
FY22 | FY23 | YoY | YoY | ||
(CER)* | |||||
Revenue | 95.8 | 92.8 | -3% | -5% | |
Core OP | 1.9 | 1.5 | -21% | -21% | |
Core OP margin | 1.9% | 1.6% | |||
Exchange rate(USD/JPY) | 135 | 145 | +7% | 0% |
(Bn JPY) | ||||
23Q3 | 23Q4 | QoQ | ||
24.4 | 22.6 | -7% | ||
0.8 | 0.3 | -66% | ||
3.4% | 1.3% | |||
148 | 149 | +0% |
Core OP analysis (Bn JPY)
YoY | QoQ |
Sales volume decreased due to sluggish demand(-)
Revised sales price (+)
Trading spread increased (+)
Inventory effect (-)
Sales volume decreased due to sluggish demand(-)
Revised sales price (+)
Trading spread decreased (-)
FC incurred difference (-)
Inventory effect (+)
*Reference data: CER (Constant Exchange Rate. Excluding FX impacts) | 9 |
4. Market Outlook
FY22 Act
FY23 Outlook | FY23 Act | FY24 | |
Outlook | |||
Apr. 27 | Nov. 6 | Apr.30 | Apr.30 |
FX(USD/JPY) | 135 | 135 | 143 | 145 | 140 |
Silicon Wafer Input | +/-0% | -5% | -10~-15% | -10~-15% | +5~+10% |
(YoY) | |||||
Panel Makers Utilization Rate | 71% | 78% | 77% | 78% | 79% |
Panel Production (YoY) | -19% | +12% | +10% | +3% | +6% |
Smartphone Shipments (YoY) | -9% | +3% | -5% | -4% | +3% |
Automobile Production (YoY) | +8% | +5% | +5% | +8% | +2% |
Global Makers | +4% | - | +6% | +5% | -1% |
Japanese Makers (Global) | |||||
Bio Pharmaceutical Market | +8% | +7% | +9% | +9% | +11% |
Biotech Industry Funding | -45% | - | - | -13% | - |
(YoY) |
*JSR estimates based on resources of outside research institutions. | 10 |
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JSR Corporation published this content on 30 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 April 2024 05:09:18 UTC.