SEKISUI’s financial data of FY2016 has been published. Although not all the objectives of the previous Mid-Term Plan have been met, solid improvement in profitability was realised. A decisive growth factor was the expansion and reform of the High Performance Plastics Company.
General information
SEKISUI’s Fiscal Year (FY) lasts from 1 April to 31 March and therefore does not match with the regular calendar year. FY2016 describes the period from 1 April 2016 to 31 March 2017. The same principle applies for all other Fiscal Years.
SEKISUI CHEMICAL CO., LTD. discloses financial results in Japanese Yen (¥). However, for a better understanding the figures have been converted into Euro (€). Due to changing exchange rates this is just a rough calculation. The exchange rates used are as follows:
FY2015: 133 ¥ = 1 €
FY2016: 119 ¥ = 1 €
FY2017 (Plan): 121 ¥ = 1 €
Please note that it is prohibited to disclose the following figures, which are just rough estimates, outside SEKISUI. The numbers are for internal use only.
SEKISUI Chemical Group performance in 2016
Compared to FY2015, the Group recorded a sales development of 8243 mill. € to 8956 mill. € in FY2016. However, this development is not equivalent to an increase in sales due to the currency exchange. As a matter of fact, a decline can be observed for the entire SEKISUI Group when the official sales figures in ¥ are considered.
Thus, sales declined from 1096.3 bn ¥ to 1065.8 bn ¥ in the course of FY2015 to FY2016. The reasons for this decrease were the incomplete development of eight core businesses (called “Growing 8”), structural reforms of international businesses and a reduced demand due to the increase in consumption tax in Japan.
Nonetheless, a positive trend is reflected in the operating income (OPI), which rose from 675 mill. € (89.8 bn ¥) to 811 mill. € (96.5 bn ¥). In relative terms, this means an increase in the OPI ratio from 8% to 9%. In FY2017, it is planned to keep the OPI ratio at 9%, while raising the sales by 168 mill. € (38.2 bn ¥) to a total of 9124 mill. € (1104 bn ¥) at the same time.
Overall, the numbers cover all businesses of SEKISUI including domestic and international business units as well as HPP (High Performance Plastics), Housing and UIEP (Urban Infrastructure & Environmental Products).
The primary factor behind the growth was the expansion and reform of the HPP Company, which exceeded its goals by far and boosted other Group companies as well. The SEKISUI Group has eight operating entities in Europe. Apart from SEKISU Eslon and SEKISUI Pipe Renewal, they are all part of the HPP Company. In total, the European companies account for 6% of the overall Group sales worldwide.
Key contributions were also made by the Housing Company, which is mainly active in Japan. Lastly, the UIEP Company achieved record profits due to a structural reform of internal businesses as well as through an improved profitability in Japan.
All in all, the financial results were achieved by a workforce of 23,006 employees, who are currently working for SEKISUI Chemical Group. The majority of them are employed in Japan.
The Group’s ultimate goal
In addition to the plans for FY2017, an ultimate goal for the entire SEKISUI Group was announced. The target is 9657 mill. € (1.2 tn ¥) in sales with an operating income of 965 mill. € (120 bn ¥) and an OPI ratio of 10% worldwide.
