Resonac Holdings Corporation · TSE:4004
Resonac — Q2 2023 Earnings Presentation
28 slides from Resonac's earnings presentation, Aug 8, 2023
Slide 1: Consolidated Financial Results Second Quarter, 2023
Consolidated Financial Results Second Quarter, 2023 Hideki Somemiya, CFO Director & Managing Corporate Officer August 8, 2023
Slide 2: Key Takeaways
Key Takeaways - 2023 1H sales figures were 616.1 billion yen, a 39.9 billion yen decrease from 2022 1H - Semiconductor & Electronic Materials segment impacted from correction in semiconductor manufacturing and slowdown in data center demand - Chemicals segment, which had a scheduled shutdown of olef
Slide 3: Table of Contents
Table of Contents 1. Consolidated Financial Statements for 2023 1H 2. 2023 Full-year Performance Forecast ©Resonac Holdings Corporation All Rights Reserved.
Slide 4: Summary (2022 1H vs. 2023 1H)
Summary (2022 1H vs. 2023 1H) Based on ongoing businesses *2 (Unit: Billions of Yen) Reference (Unit: Billions of Yen) 2022 2023 Increase/ 2022 2023 Increase/ 1H*1 1H Decrease 1H 1H Decrease Net sales 656.0 616.1 (39.9) Net sales 649.4 616.1 (33.3) Operating Operating income 38.0 (13.2) (51.1) 38.0
Slide 5: Breakdown of Operating Income Changes (2022 1H vs. 2023 1H)
Breakdown of Operating Income Changes (2022 1H vs. 2023 1H) (Unit: Billions of Yen) ©Resonac Holdings Corporation All Rights Reserved. 5
Slide 6: Segment Breakdown (2022 1H vs. 2023 1H)
Sales, Operating Income and EBITDA: Segment Breakdown (2022 1H vs. 2023 1H) (Unit: Billions of Yen) 2022 2023 Increase/ Segment 1H 1H Decrease Sales 220.4 153.4 (67.0) (30%) Semiconductor and Operating Income 27.3 (13.1) (40.4) - Electronic Materials EBITDA 52.1 13.3 (38.9) (75%) Sales 86.7 85.6 (1.
Slide 7: Semiconductor and Electronic Materials
Segment Summary (2022 1H vs. 2023 1H) Semiconductor and Electronic Materials (Unit: Billions of Yen) 2022 2023 Increase/ Performance Overview 1H 1H Decrease Sales dropped significantly as weakened demand, Sales 220.4 153.4 (67.0) (30%) began 2nd half of the previous year, lingered on. Decreased sale
Slide 8: Mobility
Segment Summary (2022 1H vs. 2023 1H) Mobility (Unit: Billions of Yen) 2022 2023 Increase/ Performance Overview 1H* 1H Decrease Sales 86.7 85.6 (1.1) (1%) Automotive Products saw an increase in sales as products for new model vehicles have launched, Automotive Products 69.3 70.8 1.5 2% while sales o
Slide 9: Innovation Enabling Materials
Segment Summary (2022 1H vs. 2023 1H) Innovation Enabling Materials (Unit: Billions of Yen) 2022 2023 Increase/ Performance Overview 1H 1H Decrease Sales 70.0 61.9 (8.1) (12%) Operating Income 5.5 4.3 (1.2) (22%) Both sales and operating income decreased as sales volume went down, despite raised sal
Slide 10: Chemicals
Segment Summary (2022 1H vs. 2023 1H) Chemicals (Unit: Billions of Yen) 2022 2023 Increase/ Performance Overview 1H 1H Decrease Sales 224.5 254.9 30.4 14% - Olefins & Derivatives: Although sales increased Olefins & Derivatives significantly due to the absence of 4-year cycle 132.5 153.5 21.0 16% lar
Slide 11: Non-operating Income/Expenses, Extraordinary Profit/Loss
Non-operating Income/Expenses, Extraordinary Profit/Loss Non-operating Income/Expenses (Unit: Billions of Yen) Extraordinary Profit/Loss (Unit: Billions of Yen) 2022 2023 Increase/ 2022 2023 Increase/ 1H 1H Decrease 1H 1H Decrease Interest/Dividends Gains on sale of (3.3) (5.6) (2.3) 0.3 1.5 1.2 inc
Slide 12: Consolidated Balance Sheet
Consolidated Balance Sheet Consolidated Balance Sheet (Unit: Billions of Yen) Dec. 31, Jun. 30, Increase/ Dec. 31, Jun. 30, Increase/ Assets Decrease Liabilities and net assets Decrease 2022*1 2023 2022*1 2023 Cash and deposits 187.3 176.8 (10.5) Notes and accounts payable 194.1 171.4 (22.7) Notes a
Slide 13: Table of Contents
Table of Contents 1. Consolidated Financial Statements for 2023 1H 2. 2023 Full-year Performance Forecast ©Resonac Holdings Corporation All Rights Reserved.
Slide 14: 2023 Consolidated Forecast
2023 Consolidated Forecast (Unit: Billions of Yen except Cash dividends per Share and Net income per Share) 2022 2023 Increase/ 2023 2023 Full-year Full-year Earlier Results*1 Forecast*2 Decrease 1H Results 2H Forecast*2 Forecast*3 Net sales 1,392.6 1,270.0 (122.6) 616.1 653.9 1,340.0 Operating inco
Slide 15: Segment Breakdown (Consolidated)
Sales and Operating Income 2023: Segment Breakdown (Consolidated) (Unit: Billions of Yen) 2023 Forecast* 2022 Results Segment 1Q 2Q 1H 2H Full-year 2H Increase/ Full-year Increase/ Results Results Results Forecast Forecast Results Decrease Results Decrease Semiconductor and Sales 69.4 84.0 153.4 171
Slide 16: Segment Breakdown (Consolidated)
Sales and Operating Income 2023: Segment Breakdown (Consolidated) (Unit: Billions of Yen) 2023 Forecast*1 2023 Earlier Forecast*2 Segment 1H 2H Full-year 1H Increase/ 2H Increase/ Full-year Increase/ Results Forecast Forecast Forecast Decrease Forecast Decrease Forecast Decrease Semiconductor and Sa
Slide 17: Update on Structural Reforms: Mobility
Update on Structural Reforms For Mobility business, overall plan and timeframe strategized 1. Business portfolio assessed by the designated team Clarified its portfolio position for each products, Mobility ▶ defining where to focus to improve profitability 2. Base/Plant consolidation ▶ Close & integ
Slide 18: Update on Structural Reforms
Update on Structural Reforms Structural reforms underway to drastically improve profitability - Production capacity/workforce optimization ▶ In addition to the 20% cut in production capacity by the end of the year, HD Media additional measures in case of further demand decrease under consideration -
Slide 19: Appendix
Appendix ©Resonac Holdings Corporation All Rights Reserved.
Slide 20: Consolidated Companies, Key Outside Factors
Reference Consolidated Companies, Key Outside Factors Consolidated Companies Consolidated subsidiaries: 104 (-4 from Dec. 31, 2022) -3: Integration of regional HQs -1: Absorption and merger of HC Holdings K.K., an SPC to acquire former Hitachi Chemical Equity method applied: 12 (-1 from Dec. 31, 202
Slide 21: Consolidated Cash Flows
Reference Consolidated Cash Flows (Unit: Billions of Yen) 2022 2023 2022 1H 2023 1H Increase/ Increase/ Results* Results Decrease Full-year Full-year Decrease Results* Forecast CF from operating activities 21.6 48.1 26.5 99.8 93.0 (6.8) CF from investing activities (36.6) (45.1) (8.5) (54.7) (101.0)
Slide 22: Capital Expenditures: Segment Breakdown
Reference Capital Expenditures: Segment Breakdown (Unit: Billions of Yen) 2022 2023 2022 1H 2023 1H Increase/ Increase/ Segment Results* Results Decrease Full-year Full-year Decrease Results* Forecast Semiconductor and 23.1 18.9 (4.2) 44.3 50.1 5.8 Electronic Materials Mobility 4.1 4.2 0.0 8.9 12.1
Slide 23: Capital Expenditures, Depreciation, R&D expenditures, Financial costs and Preferred stock dividends
Capital Expenditures, Depreciation, R&D expenditures, Financial costs and Reference Preferred stock dividends, Adjusted net D/E ratio (Consolidated) (Unit: Billions of Yen) 2022 2023 2022 1H 2023 1H Increase/ Increase/ Full-year Full-year Results*1 Results Decrease Decrease Results*1 Forecast Capita
Slide 24: Depreciation: Segment Breakdown
Reference Depreciation: Segment Breakdown 2022 2023 (Unit: Billions of Yen) 2022 1H 2023 1H Increase/ Increase/ Segment Full-year Full-year Results*1 Results Decrease Results*1 Forecast Decrease Depreciation (excl. PPA) 12.0 13.5 1.6 24.9 27.8 2.9 Semiconductor and PPA depreciation 6.2 6.2 - 12.4 12
Slide 25: Summary (2023 1Q vs. 2023 2Q)
Reference Summary (2023 1Q vs. 2023 2Q) (Unit: Billions of Yen) Increase/ 2023 1Q 2023 2Q Decrease Net sales 298.9 317.2 18.3 Operating income (9.2) (4.0) 5.2 Non-operating income and (1.7) 3.5 5.2 expenses, net Ordinary income (10.9) (0.4) 10.5 Extraordinary profit/loss (3.8) 0.2 4.0 Income before
Slide 26: Segment Breakdown (Consolidated) 2022
Reference Sales and Operating Income 2022: Segment Breakdown (Consolidated) (Unit: Billions of Yen) 2022*1 Segment 1Q 2Q 3Q 4Q Full Year Semiconductor and Sales 107.3 113.0 112.0 94.8 427.2 Electronic Materials Operating Income 13.2 14.1 13.2 5.0 45.5 Sales 41.2 38.9 45.0 45.7 170.8 Mobility Operati
Slide 27: Topics
Reference Topics Segment Topics General Resonac Group to Integrate and Relocate Head Offices Resonac Increases Production Capacity for Adhesive Film for Semiconductor Packaging by 60% Semiconductor and Electronic “JOINT2” Consortium Enhances Its Proposal Capability for the Development of Next- Mater
Slide 28: Note
Note Performance forecast and other statements pertaining to the future as contained in this presentation are based on the information available as of today and assumptions as of today regarding risk factors that could affect our future performance. Actual results may differ materially from the fore