Resonac Holdings Corporation · TSE:4004
Resonac — Showa Denko K.K. — Q3 2017 Earnings Presentation
30 slides from Resonac's earnings presentation, Nov 14, 2017
Slide 1: Third Quarter, 2017 Financial Results - Consolidated
Evolving unique chemical company Third Quarter, 2017 Financial Results - Consolidated - SHOWA DENKO K.K. November 14, 2017 Toshiharu Kato, CFO Director & Corporate Officer Performance forecast and other statements pertaining to the future as contained in this presentation are based on the informatio
Slide 2: Consolidated Companies and Selected Data
Consolidated Companies Consolidated subsidiaries: 51 3 companies newly consolidated after the end of 2016 Showa Denko New Material (Zhuhai) Co., Ltd. (Chemicals segment) Shanghai Showa Highpolymer Trading Co., Ltd. (Chemicals segment) Showa Chemicals of America Inc. (Chemicals segment) 1 company n
Slide 3: Summary (Jan.-Sept. 2016 vs 2017)
Summary Jan. 1 – Sept. 30, 2016 vs. Jan. 1 – Sept. 30, 2017 (Unit: Billions of Yen) Jan.-Sept. Jan.-Sept. Increase/ 2016 2017 decrease Net Sales 484.4 563.8 79.4 Operating Income 25.5 55.9 30.5 Non-operating income and expenses, net -4.8 -13.6 -8.7 Interest/Dividends income and expenses -1.3 -1.0 0.
Slide 4: Extraordinary Profit/Loss
Extraordinary Profit/Loss (Unit: Billions of Yen) Jan.-Sept. Jan.-Sept. Increase/ 2016 2017 decrease Extraordinary Profit 1.2 0.4 -0.8 Gain from sales of fixed assets 0.3 0.1 -0.2 Gain on sales of investment securities 0.1 0.2 0.2 Gain on bargain purchase 0.7 － -0.7 Other 0.1 0.0 -0.1 Extraord
Slide 5: Consolidated Sales by Segment
Consolidated Sales by Segment (Unit: Billions of Yen) Jan.-Sept. Jan.-Sept. Increase/ 2016 2017 decrease 【Olefins】 sales increased (price up due to naphtha price up) 【Organic chemicals】 sales increased Petrochemicals 130.1 183.2 53.0 (vinyl acetate, ethyl acetate: shipment volumes up, market price u
Slide 6: Consolidated Operating Income by Segment
Consolidated Operating Income by Segment (Unit: Billions of Yen) Jan.-Sept. Jan.-Sept. Increase/ 2016 2017 decrease 【Olefins】 profit significantly increased (continuation of high operation, 13.4 24.1 10.7 market price up) Petrochemicals 【Organic chemicals】 profit maintained at the year-earlier level
Slide 7: Operating Income Breakdown by Factor
Operating Income Breakdown by Factor (Unit: Billions of Yen) 60.0 7.4 55.9 50.0 9.3 14.2 40.0 -0.4 30.0 25.5 20.0 10.0 0.0 Jan.-Sept.'16 Volumes Price changes, net Cost reductions Others Jan.-Sept.'17 Showa Denko 3rd Quarter, 2017 Consolidated Financial Results 7
Slide 8: Summary (CQ3 2016 vs CQ3 2017)
Summary CQ3 (Jul.1 – Sept.30), 2016 vs. CQ3 (Jul.1 – Sept.30), 2017 (Unit: Billions of Yen) Increase/ CQ3, 2016 CQ3, 2017 decrease Net Sales 165.7 191.6 25.9 Operating Income 13.9 20.9 7.0 Non-operating income and expenses, net -1.0 -0.8 0.2 Interest/Dividends income and expenses -0.4 -0.4 0.0 Equit
Slide 9: Consolidated Sales by Segment (CQ3)
Consolidated Sales by Segment CQ3 (Jul.1 – Sept.30), 2016 v s. CQ3 (Jul.1 – Sept.30), 2017 (Unit: Billions of Yen) CQ3, CQ3, Increase/ 2016 2017 decrease 【Olefins】 sales increased (naphtha price up) 44.1 59.2 15.1 【Organic chemicals】 sales increased Petrochemicals (ethyl acetate, allyl alcohol: ship
Slide 10: Consolidated Operating Income by Segment (CQ3)
Consolidated Operating Income by Segment CQ3 (Jul.1 – Sept.30), 2016 v s. CQ3 (Jul.1 – Sept.30), 2017 (Unit: Billions of Yen) CQ3, CQ3, Increase/ 2016 2017 decrease 【Olefins】 profit increased (cracked fuel oil: market price up) Petrochemicals 6.0 7.9 1.9 【Organic chemicals】 profit decreased (vinyl a
Slide 11: Consolidated Balance Sheet
Consolidated Balance Sheet (Unit: Billions of Yen) Assets Dec. 31, Sept.30, Increase/ Liabilities and Net Assets Dec. 31, Sept.30, Increase/ 2016 2017 decrease 2016 2017 decrease Cash and deposits 69.9 89.3 19.4 Notes and accounts payable 104.0 111.4 7.4 Notes and accounts receivable 143.8 151.1 7.3
Slide 12: Total Assets, Interest-bearing Debt and D/E ratio
Total Assets Interest-bearing Debt and D/E ratio (Unit: Billions of Yen) Dec. 31, Sept. 30, Increase/ 2016 2017 decrease Total assets 932.7 965.1 32.4 Interest-bearing debt 359.9 351.0 -8.9 Debt/Equity ratio 1.16 times 1.03 times -0.13p Stockholders’ Equity ratio 31.8% 33.6% 1.8p Showa Denko
Slide 13: Interest-bearing Debt
Interest-bearing Debt 500.0 D/E ratio （Unit: Billions of Yen) 1.20 1.20 1.16 1.10 1.09 1.03 400.0 1.02 383.1 368.8 359.9 353.7 348.5 351.0 342.3 300.0 200.0 2012 2013 2014 2015 2016 2017 2017 Jun.30 Sept.30 Equity ratio 29.2% 30.6% 29.7% 31.5% 31.8% 32.6% 33.6% Showa Denko 3rd Quarter, 2017 Consolid
Slide 14: (Reference) Summary CQ2 vs CQ3 2017
(Reference) Summary CQ2 (Apr.1 – Jun.30), 2017 vs. CQ3 (Jul.1 – Sept.30), 2017 (Unit: Billions of Yen) Increase/ CQ2, 2017 CQ3, 2017 decrease Net Sales 189.0 191.6 2.6 Operating Income 15.3 20.9 5.6 Non-operating income and expenses, net -10.8 -0.8 10.0 Interest/Dividends income and expenses -0.3 -0
Slide 15: (Reference) Consolidated Sales by Segment
(Reference) Consolidated Sales by Segment CQ2 (Apr.1 – Jun.30), 2017 vs. CQ3 (Jul.1 – Sept.30), 2017 (Unit: Billions of Yen) CQ2, CQ3, Increase/ 2017 2017 decrease 【Olefins】 sales slightly decreased 59.3 59.2 -0.1 【Organic chemicals】 sales increased (vinyl acetate, ethyl acetate: shipment volumes Pe
Slide 16: (Reference) Consolidated Operating Income by Segment
(Reference) Consolidated Operating Income by Segment CQ2 (Apr.1 – Jun.30), 2017 vs. CQ3 (Jul.1 – Sept.30), 2017 (Unit: Billions of Yen) CQ2, CQ3, Increase/ 2017 2017 decrease 【Olefins】 profit increased (market price steady) Petrochemicals 5.6 7.9 2.4 【Organic chemicals】 profit slightly decreased 【Su
Slide 17: (Reference) Quarterly Summary 2017
(Reference) Quarterly Summary 2017 (Unit: Billions of Yen) Jan.－Sept. 2017 CQ1, 2017 CQ2, 2017 CQ3, 2017 2017 Forecast* Net Sales 183.2 189.0 191.6 563.8 762.0 Operating Income 19.7 15.3 20.9 55.9 60.0 Net income attributable to owners of the parent 14.6 -6.7 15.6 23.4 21.0 *Forecast was revised on
Slide 18: (Reference) Quarterly Operating Income
(Reference) Quarterly Operating Income 2017 (Unit: Billions of Yen) 2016 25.0 20.9 19.7 20.0 16.6 15.3 15.0 13.9 10.0 8.7 5.0 2.9 0.0 CQ1 CQ2 CQ3 CQ4 Showa Denko 3rd Quarter, 2017 Consolidated Financial Results 18
Slide 19: (Reference) Quarterly Operating Income by Segment
(Reference) Quarterly Operating Income by Segment 《Petrochemicals》 《Chemicals》 (Unit: Billions of Yen) (Unit: Billions of Yen) 2017 5.0 2017 12.0 2016 2016 10.6 4.3 4.4 4.1 10.0 4.0 3.8 7.9 3.1 8.0 7.3 3.0 2.9 5.9 5.6 6.0 2.5 6.0 2.0 4.0 2.0 1.5 1.0 0.0 0.0 CQ1 CQ2 CQ3 CQ4 CQ1 CQ2 CQ3 CQ4 Showa Denk
Slide 20: (Reference) Quarterly Operating Income by Segment
(Reference) Quarterly Operating Income by Segment 《Electronics》 《Inorganics》 (Unit: Billions of Yen) (Unit: Billions of Yen) 2017 2017 3.0 2016 2016 8.0 2.3 2.0 6.1 6.3 6.0 5.8 1.0 4.4 0.2 4.0 0.0 2.8 CQ1-0.1 CQ2 CQ3 CQ4 1.9 -1.0 -0.7 -0.7 0.0 -2.0 -2.0 CQ1 CQ2 CQ3 CQ4 (note) From 2017 SDK changes t
Slide 21: (Reference) Quarterly Operating Income by Segment
(Reference) Quarterly Operating Income by Segment 《Aluminum》 《Others》 (Unit: Billions of Yen) 2.0 2017 (Unit: Billions of Yen) 2017 1.0 2016 2016 1.7 1.6 1.6 1.5 1.5 1.3 1.2 0.5 0.4 1.0 0.2 0.2 0.2 0.1 0.1 0.0 CQ1 CQ2 CQ3 CQ4 0.5 -0.1 0.2 0.0 -0.5 CQ1 CQ2 CQ3 CQ4 (note) From 2017 SDK changes the seg
Slide 22: Topics: Incorporated into ESG indexes
Topics [General] ● Incorporated into ESG indexes for investment In July 2017, SDK was incorporated into three ESG indexes for investment: “FTSE Blossom Japan Index” provided by FTSE International Limited and Frank Russel Company (FTSE Russell, a member of London Stock Exchange Group); and “MSCI Japa
Slide 23: Topics: Chemicals segment
Topics [Chemicals segment] ● Established a subsidiary to sell high-purity gases for electronics in the U.S. In July 2017, SDK established a wholly-owned subsidiary, “Showa Chemicals of America Inc.” (SCA), in Austin, Texas, aiming to strengthen its sale of high-purity gases for electronics in the U.
Slide 24: Topics: Chemicals segment
Topics [Chemicals segment] ● Established fourth bulk molding compound plant in Asia In September 2017, Showa Denko New Material (Zhuhai) Co., Ltd. (SDNZ), a consolidated subsidiary of SDK, had a ceremony for the completion of its new plant to produce thermosetting bulk molding compound (BMC) in Zhuh
Slide 25: Topics: Electronics segment
Topics [Electronics segment] ● Started shipment of 2.5-inch 1 TB HD media, best in class In September 2017, SDK started shipment of 2.5-inch HD media with storage capacity of 1 terabyte (TB) per disk, which feature the world’s highest storage capacity for this size available on the market at that ti
Slide 26: Topics: Electronics segment
Topics [Electronics segment] ● Expanded lineup of infrared LEDs for high-output uses In August 2017, SDK expanded its product lineup of infrared LED chips (IR-LEDs), which are mainly used as parts of photo-couplers for gate divers in power semiconductor modules and parts of sensors for IoT-related d
Slide 27: Topics: Inorganics segment
Topics [Inorganics segment] ●Completed acquisition of all shares in SGL GE, a graphite electrode production company By late September 2017, SDK obtained approval from all required competition authorities for its acquisition of all shares in SGL GE Holding GmbH (SGL GE), a graphite electrode producti
Slide 28: Topics: Aluminum segment
Topics [Aluminum segment] ●New aluminum can JV has a foundation stone-laying ceremony in Thailand SDK, Showa Aluminum Can Corporation (SAC), which is a consolidated subsidiary of SDK, and Carabao Group Public Company Limited (CBG), which is a leading beverage maker headquartered in Bangkok, Thailand
Slide 29: Topics: Others segment
Topics [Others segment] ● Decided to expand capacity for producing high-grade SiC epitaxial wafers In September 2017, SDK decided to expand its capacity for producing high-quality-grade silicon carbide (SiC) epitaxial wafers for power devices, which had already been marketed under the trade name of
Slide 30: Topics: Others segment
Topics [Others segment] ● Decided to acquire assets concerning SiC for power devices from Nippon Steel & Sumitomo Metal Group SDK has decided to acquire assets concerning Sublimation-recrystallization Method to manufacture silicon carbide (SiC) wafers from Nippon Steel & Sumitomo Metal Corporation a