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Copyright 2025 Fuji Seal Group FY2024 Q3 Financial Results Supplementary Explanatory Materials Fuji Seal International, Inc. February 12, 2025 (9 months)
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Copyright 2025 Fuji Seal Group 2 Table of Contents 1．Financial Results for the Q3 of FY2024 2. Revision of Earnings Forecast 3. Revision of Dividend Forecast 4．Initiatives to Achieve FSG.30
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Copyright 2025 Fuji Seal Group 3 1. FY2024 Q3 Financial Results (1) Summary Consolidated net sales increased 9.5% YoY due to growth in existing businesses and the foreign exchange effects at overseas subsidiaries. Consolidated operating profits increased 53.8% YoY due to measures to improve profitability in each region. Consolidated net sales and operating profits both reached record high levels. The regional business results up to Q3 are as follows. Operating profits Sales Segment YoY All businesses continued to implement price revisions in response to soaring raw material prices. Double-digit profit growth (+14.9% YoY) due to streamlining and efficiency improvement in production activities. Focus on expanding value-added products by expanding sales of products with added functionality for SSL and PSL. Promoting proposals to replace from rigid containers to Soft Pouch. We are taking action to further raise the level of profitability. Accelerating expansion of pharmaceutical business and ongoing expansion of product market and target area as Japan Region. Sales increased in 4 existing businesses. In particular, double-digit growth in Soft Pouch, the focus of FSG.30. Shrink(SSL) and PS label(PSL) were supported in the first half by strong sales for beverages due to the hot summer. Soft Pouch performed well in beverages and HPC (+11.5% YoY). Continue to increase business presence as a primary package. Machinery sales increased, driven by change parts and after-services (+9.4% YoY). Japan Increased in Sales and Profit Significant increase in operating profit due to increase in top line (+138.0% YoY). SSL has been highly effective in optimizing the supply balance at the three factory, and customer demand continue to increase. PSL’s improved profitability will raise the profitability of Americas and further solidify its earnings base. Soft Pouch is in the process of narrowing down its target market and restructuring its sales strategy. Sales increased in SSL, PSL, and Machinery. Sales increase 8.2% in Americas. SSL sales in Americas exceeded sales of SSL in Japan, driving overall sales in Americas (+8.9% YoY). PSL significant increases in sales due to continued growth in orders from major HPC customers, which are strategic customers for us (+50.4% YoY). PSL labeler for the pharmaceutical market, parts, and service exceeded expectations in Machinery business. Americas Increased in Sales and Profit* Profitability of SSL and PSL improved due to structural reforms. In addition, sales of PSL labeler to the highly profitable pharmaceutical market drove high profitability (+137.4% YoY). In PSL labeler for the pharmaceutical market, we expect to shift to a further growth path by increasing production capacity with the operation of a new factory in Italy in FY2025. SSL and PSL sales decreased on a local currency basis due to the continued decline in demand caused by the economic slowdown. Machinery sales increased (+42.6% YoY) due to continued strong sales of PSL labeler for the pharmaceutical market (for autoinjector). We continue the strategy to further expand sales channels to Europe, Americas, and India as well. Europe Increased in Sales and Profit* Significant increase in operating profit (+175.6% YoY) due to improved profitability of SSL and product portfolio review. Soft Pouch is rebuilding its earnings base. Aiming to secure stable profitability by promoting structural reform of manufacturing. SSL sales increased (+8.3% YoY) due to demand recovery in Thailand and Vietnam. Soft Pouch’s sales declined ( ▲3.2% YoY) due to a review of the business portfolio in Vietnam and a decrease in shipments to a large customer in Thailand. However, we continue to implement measures to expand sales channels to local customers. ASEAN Increased in Sales and Profit* *Local Currency Base
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Copyright 2025 Fuji Seal Group 4 1. FY2024 Q3 Financial Results (2) Net sales and Profit (Amount) (%) Progress rate 144,730 158,472 +13,742 +9.5% 203,000 78.1% 9,190 14,130 +53.8% 15,400 91.8% (6.3%) (8.9%) (+2.6pt) (7.6%) (+1.3pt) 10,222 14,093 +37.9% 15,600 90.3% (7.1%) (8.9%) (+1.8pt) (7.7%) (+1.2pt) 7,602 9,381 +23.4% 10,600 88.5% (5.3%) (5.9%) (+0.6pt) (5.2%) (+0.7pt) USD 138.24 151.46 +9.6% 140.00 +8.2% EUR 149.77 164.56 +9.9% 150.00 +9.7% Ordinary profits (Ordinary Profit Margin) +3,871 Net profits (Net Profit Margin) +1,778 Foreign Currency Translation Rate (average) Operating profits (Operating Profit Margin) +4,940 Vs. Announced in May Net sales (Millions of yen) FY2023 3rd quarter FY2024 3rd quarter Increase/Decrease FY2024 Announced in May 【Note 】 Regarding Q3, the results for the Japan and Fuji Seal Packaging (Thailand)Co., Ltd. （FSPT) are for the period from April to December, Figures for the Americas, Europe, and ASEAN (excluding FSPT) are January-September results.
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Copyright 2025 Fuji Seal Group 5 1. FY2024 Q3 Financial Results (3) Net sales by Segment by region Change Rate of change Excluding forex impact Rate of change Japan 73,958 77,212 3,254 +4.4% - Shrink label 35,750 36,821 1,070 +3.0% - PS label 6,225 6,565 340 +5.5% - Soft pouch 15,406 17,178 1,771 +11.5% - Machinery 4,113 4,499 386 +9.4% - Others 12,461 12,148 △313 △2.5% - Americas 40,706 48,250 7,543 +18.5% +8.2% Shrink label 34,288 40,898 6,609 +19.3% +8.9% PS label 1,347 2,220 872 +64.7% +50.4% Soft pouch 207 52 △154 △74.6% △76.8% Machinery 4,270 5,078 807 +18.9% +8.5% Others 591 - △591 - - Europe 22,961 26,794 3,832 +16.7% +6.2% Shrink label 13,168 13,938 770 +5.8% △3.7% PS label 4,273 4,209 △64 △1.5% △10.4% Machinery 5,519 8,646 3,127 +56.7% +42.6% ASEAN 13,287 14,970 1,682 +12.7% +2.8% Shrink label 6,386 7,574 1,188 +18.6% +8.3% PS label 141 76 △64 △46.0% △50.7% Soft pouch 6,281 6,664 382 +6.1% △3.2% Machinery 420 622 201 +48.0% +35.1% Others 58 33 △25 △43.1% △48.1% △6,184 △8,756 △2,571 +41.6% 144,730 158,472 13,742 +9.5% FY2024 3rd quarter Year-on-year change Eliminations Consolidated net (Millions of yen) FY2023 3rd quarter ※ ※ ※The previous year's figures have been revised due to a change in sales categories. Japan （millions of yen ） Sales before revision Shrink label 38,322 Others 9,890
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Copyright 2025 Fuji Seal Group 6 Inside of （） is Operating profit ratio Net sales Operating profits 1. FY2024 Q3 Financial Results (4) Net sales and Operating Profit by region 144,730 158,472 +13,742 +5,817 +4.0% 9,190 14,130 +4,940 +4,296 +46.7% (6.3%) (8.9%) (+2.6pt) 73,958 77,212 +3,254 +3,254 +4.4% 6,665 7,655 +990 +990 +14.9% (9.0%) (9.9%) (+0.9pt) 40,706 48,250 +7,543 +3,333 +8.2% 1,882 4,908 +3,026 +2,598 +138.0% (4.6%) (10.2%) (+5.6pt) 22,961 26,794 +3,832 +1,425 +6.2% 661 1,725 +1,064 +909 +137.4% (2.9%) (6.4%) (+3.5pt) 13,287 14,970 +1,682 +376 +2.8% 231 699 +468 +407 +175.6% (1.7%) (4.7%) (+3.0pt) △6,184 △8,756 △2,571 △2,571 +41.6% △251 △859 △608 △608 +242.2% Europe ASEAN Eliminations FY2024 3rd quarter Year-on-year change Excluding forex impact Consolidation Japan Americas (Millions of yen) FY2023 3rd quarter FY2024 3rd quarter Year-on-year change Excluding forex impact FY2023 3rd quarter
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Copyright 2025 Fuji Seal Group Net sales Operating profits 7 1. FY2024 Q3 Financial Results (5) Performance Analysis *Excluding Foreign Currency Impact
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Copyright 2025 Fuji Seal Group 【Non-operating income/expenses 】 ●The main reason for the increase/decrease is the effect of foreign exchange conversion of foreign currency-denominated assets held for future investment purposes. 【Extraordinary losses 】 ●The main reason in the increase was 222-million-yen loss on disposal of equipment in Japan and other regions. 【Corporate tax 】 ●Due to the exchange rate impact on subsidiaries in the Americas, there was a reversal of deferred tax assets, and the effective tax rate increased. 8 1. FY2024 Q3 Financial Results (6) Non-operating Income （Expenses ）, Ordinary Income and Net income
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Copyright 2025 Fuji Seal Group Cash and deposits increased due to improved profitability. In addition, working capital increased due to the impact of foreign exchange and increased revenue . （Unit ：millions of yen ） Current assets 126,462 （＋ 9,398 compared to the end of the previous period ） Noncurrent assets 74,099 （△ 1,520 compared to the end of the previous period ） Liabilities 61,259 （＋ 717 compared to the end of the previous period ） Net assets 139,302 （＋ 7,160 compared to the end of the previous period ） Total assets 200,562 （＋ 7,877 compared to the end of the previous period ） Main Points of Increase/Decrease ・ Tangible fixed assets △610 ・ Deferred tax assets △1,188 Main Points of Increase/Decrease ・ Cash and time deposits ＋6,415 ・ Notes and accounts receivable ＋404 ・ Inventories ＋2,519 Main Points of Increase/Decrease ・ Trade payables △1,470 ・ Debts +2,029 ・ Other current liabilities ＋2,310 Main Points of Increase/Decrease ・ Retained earnings +5,380 ・ Foreign currency translation adjustment +1,671 9 1. FY2024 Q3 Financial Results (7) B/S End of FY2023 End of FY2024 3rd quarter Rate of Change 68.6% 69.5% +0.9pt 7,406 9,405 +27.0% +0.06pt +0.07pt 1.1 Equity retio Interest-bearing debt Ｄ/Ｅ retio(times)
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Copyright 2025 Fuji Seal Group 10 2. FY2024 Revision of earnings forecast (1) Net sales and Profits Net sales and Profits were all revised upward from the forecast as of May 2024. Operating income was revised upward by more than 20% from the May forecast. Ordinary profits secured double-digit growth rate despite the impact of foreign exchange rate on foreign currency denominated assets. Amount of Increase/Decrease (％) Amount of Increase/Decrease (％) 196,624 203,000 213,000 +16,376 +8.3% +10,000 4.9% 13,309 15,400 18,600 +39.7% 20.8% (6.8%) (7.6%) (8.7%) (+1.9pt) (+1.1pt) 14,732 15,600 18,000 +22.2% 15.4% (7.5%) (7.7%) (8.5%) (+1.0pt) (+0.8pt) 10,277 10,600 11,600 +12.9% 9.4% (5.2%) (5.2%) (5.4%) (+0.2pt) (+0.2pt) USD 140.67 140.00 151.69 +7.8% +8.3% EUR 152.11 150.00 164.05 +7.8% +9.4% Vs. Announcement in May (Millions of yen) FY2024 Result FY2024 Announced in May FY2024 (Revised in February) Year-on-year change Net sales Operating profits (Operating Profit Margin) +5,291 +3,200 Ordinary profits (Ordinary Profit Margin) +3,268 +2,400 Net profits (Net Profit Margin) +1,323 +1,000 Foreign Currency Translation Rate (average)
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Copyright 2025 Fuji Seal Group 11 2. FY2024 Revision of earnings forecast (2) Net sales and Profit 【Net sales 】 Sales are expected to increase 4.9% from the forecast in May 2024 due to growth in existing businesses in Japan and Americas, as well as foreign exchange effects at overseas subsidiaries. Japan was impacted by hot summer, while strong demand in the Americas supported the increase in sales. 【Operating Profits】 Net sales growth in the Americas and improved profitability through production optimization, and strong sales of PSL labeler for the highly profitable pharmaceutical market in Europe, are the major factors behind the expected 20.8% increase in profit from the forecast in May 2024. Both consolidated sales and consolidated operating profit are expected to reach record highs in FY2024 result Amount of Increase/Decrease （％） 203,000 213,000 +10,000 +4.9% +341 +0.2% 99,800 103,000 +3,200 +3.2% +3,200 +3.2% 58,300 66,500 +8,200 +14.1% +3,075 +5.3% 33,600 34,500 +900 +2.7% △2,055 △6.1% 20,800 20,500 △300 △1.4% △1,880 △9.0% △9,500 △11,500 △2,000 - △2,000 - 15,400 18,600 +3,200 20.8% +2,441 +15.9% 8,900 9,600 +700 7.9% +700 +7.9% 4,700 6,400 +1,700 36.2% +1,207 +25.7% 1,000 2,200 +1,200 120.0% +1,012 +101.2% 1,000 1,000 - - △77 △7.7% △200 △600 △400 - △400 - Consolidated operating profits Japan Americas Europe ASEAN Eliminations Europe ASEAN Eliminations Vs. Announcement in May Excluding forex impact Consolidated net sales Japan Americas (Millions of yen) FY2024 Announced in May FY2024 (Revised in February)
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Copyright 2025 Fuji Seal Group 155.5 150.9 111.7 125.4 187.8 213.6 32 32 35 35 60 65 20.6% 21.2% 31.3% 27.9% 32.0% 30.4% 15% 17% 19% 21% 23% 25% 27% 29% 31% 33% 35% 0 50 100 150 200 (Planned) (Year) 2019 2020 2021 2022 2023 ⇒ 2024 (¥) consolidated dividend payout ratio Per share profit(EPS) 【Trends in dividends per share, EPS and consolidated dividend payout Per share cash dividend 3. Revision of Dividend Forecast As a result of this revision to the earnings forecast, net profits for the current period is expected to be ¥11.6 billion, an increase of 9.4% compared to the figure announced in May 2024. In line with this, the dividend forecast has also been increased. The annual dividend forecast has been increased by ¥5, from ¥60 to ¥65. The total return ratio is expected to exceed last year's figure due to the share buybacks. ● Annual dividend ¥65 per share ● Total dividend payment: ¥3,530 million (％) 12 Basic Policy on Distribution of Profits Invest in continued growth (technology development, human capital development, capital expenditures, M&A). While targeting a consolidated dividend payout ratio of 30% in principle, referring to DOE ratio and variation of business environment comprehensibly, also increase the dividend per share in a stable and sustained manner. Build a stable financial base prepared for emergencies and flexibly acquire and dispose of treasury stock (increase capital efficiency).
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Copyright 2025 Fuji Seal Group We will disclose the progress to achieve FSG.30 in this year in our full-year financial results. 13 4. Initiatives to Achieve FSG.30 *2024 Q2 Financial Results Supplementary Explanatory Materials Reprinted
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Copyright 2025 Fuji Seal Group 14 Our Vision - To Be - Our Value to People and the Planet Sustainable and profitable growth in the packaging industry Generate "Waku-Waku" - No growth without "Waku-Waku" - Our proactive impact to realize the Regenerative Society
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Copyright 2025 Fuji Seal Group 15 Cautionary Statement This report is intended to provide a better understanding of the Fuji Seal Group and is not intended as a recommendation for investment. This report includes earnings forecasts and business plans, which are based on certain assumptions in the economic environment and business policies at the time of preparing these materials. Please be advised that actual results may differ from these forecasts.