Resonac Holdings Corporation · TSE:4004
Resonac — Showa Denko K.K. — Q2 2021 Earnings Presentation
26 slides from Resonac's earnings presentation, Aug 10, 2021
Slide 1: Consolidated Financial Results Second Quarter, 2021
Consolidated Financial Results Second Quarter, 2021 (August 10, 2021) SHOWA DENKO K.K. Motohiro Takeuchi, CFO Representative Director & Managing Corporate Officer
Slide 2: Overview of CQ2, 2021 Financial Results
Overview of CQ2, 2021 Financial Results Consolidated Financial Results CQ2, 2021 Net Sales: ¥353.7 bn (vs. CQ1, 2021 up ¥14.0 bn) Sales in the Petrochemicals segment increased due to a rise in product prices, and in the Electronics segment, sales of HD media for near-line servers and PCs increased.
Slide 3: Consolidated Companies, Selected Data
Consolidated Companies, Selected Data Consolidated Companies Consolidated subsidiaries: 145 (-6 from Dec. 31, 2020) -9: Related to transfer of SHOKO, and aluminum rolled products and aluminum can businesses (7) Liquidation of affiliated companies engaged in energy storage devices and systems busines
Slide 4: Summary (CQ1, 2021 vs. CQ2, 2021)
Summary (CQ1 (Jan.-Mar.), 2021 vs. CQ2 (Apr.-Jun.), 2021) (Unit: Billions of Yen) Increase/ CQ1, 2021 CQ2, 2021 decrease Net sales 339.7 353.7 14.0 Operating income 20.8 26.8 5.9 Non-operating income and 4.3 -1.6 -5.9 expenses, net Ordinary income 25.1 25.1 0.0 Extraordinary profit/loss -11.7 -38.7
Slide 5: Summary of Consolidated Sales and Operating Income by Segment (CQ1 vs. CQ2)
Summary of Consolidated Sales and Operating Income by Segment (CQ1, 2021 vs. CQ2, 2021) (Unit: Billions of Yen) CQ1, 2021 CQ2, 2021 Increase/decrease Sales 57.8 69.5 11.7 20% Petrochemicals O.I.* 5.5 6.2 0.6 11% Sales 41.3 45.4 4.1 10% Chemicals O.I. 4.9 5.8 0.9 19% Sales 21.7 27.7 6.0 28% Electroni
Slide 6: Consolidated Sales and Operating Income by Segment (1) (CQ1 vs. CQ2)
Consolidated Sales and Operating Income by Segment (1) (CQ1, 2021 vs. CQ2, 2021) Petrochemicals (Unit: Billions of Yen) Chemicals (Unit: Billions of Yen) CQ1, CQ2, Increase/ CQ1, CQ2, Increase/ 2021 2021 decrease 2021 2021 Decrease Sales 57.8 69.5 11.7 Sales 41.3 45.4 4.1 Operating Operating Income
Slide 7: Consolidated Sales and Operating Income by Segment (2) (CQ1 vs. CQ2)
Consolidated Sales and Operating Income by Segment (2) (CQ1, 2021 vs. CQ2, 2021) Electronics (Unit: Billions of Yen) Inorganics (Unit: Billions of Yen) CQ1, CQ2, Increase/ CQ1, CQ2, Increase/ 2021 2021 decrease 2021 2021 decrease Sales 21.7 27.7 6.0 Sales 21.2 25.2 4.0 Operating Operating Income 1.4
Slide 8: Consolidated Sales and Operating Income by Segment (3) (CQ1 vs. CQ2)
Consolidated Sales and Operating Income by Segment (3) (CQ1, 2021 vs. CQ2, 2021) Aluminum Showa Denko Materials (Unit: Billions of Yen) (Unit: Billions of Yen) CQ1, CQ2, Increase/ CQ1, CQ2, Increase/ 2021 2021 decrease 2021 2021 decrease Sales 22.5 25.2 2.7 Sales 159.6 160.6 1.0 Operating Operating
Slide 9: Summary (1H 2020 vs. 1H 2021)
Summary (1H (Jan.-Jun.), 2020 vs. 1H (Jan.-Jun.), 2021) (Unit: Billions of Yen) Increase/ 1H, 2020 1H, 2021 decrease Net sales 326.6 693.4 366.7 Operating income -25.8 47.6 73.4 Non-operating income and -17.4 2.6 20.1 expenses, net Ordinary income -43.2 50.2 93.4 Extraordinary profit/loss -6.4 -50.4
Slide 10: Operating Income Breakdown by Factor
Operating Income Breakdown by Factor (1H, 2020 vs. 1H, 2021) (Unit: Billions of Yen) 1.8 47.6 14.0 factors related to naphtha devaluation of Subsidiary Showa inventory in Denko Materials accordance with Co., Ltd the “lower of cost or market” accounting method 10
Slide 11: Summary of Consolidated Sales and Operating Income by Segment (1H)
Summary of Consolidated Sales and Operating Income by Segment (1H, 2020 vs. 1H, 2021) (Unit: Billions of Yen) 1H, 2020 1H, 2021 Increase/decrease Sales 95.7 127.2 31.5 33% Petrochemicals O.I.* -3.7 11.7 15.4 － Sales 72.0 86.7 14.6 20% Chemicals O.I. 5.0 10.6 5.6 111% Sales 44.6 49.3 4.8 11% Electron
Slide 12: Consolidated Sales and Operating Income by Segment (1) (1H)
Consolidated Sales and Operating Income by Segment (1) (1H, 2020 vs. 1H, 2021) Petrochemicals (Unit: Billions of Yen) Chemicals (Unit: Billions of Yen) 1H, 1H, Increase/ 1H, 1H, Increase/ 2020 2021 Decrease 2020 2021 decrease Sales 95.7 127.2 31.5 Sales 72.0 86.7 14.6 Operating Operating Income -3.7
Slide 13: Consolidated Sales and Operating Income by Segment (2) (1H)
Consolidated Sales and Operating Income by Segment (2) (1H, 2020 vs. 1H, 2021) Electronics (Unit: Billions of Yen) Inorganics (Unit: Billions of Yen) 1H, 1H, Increase/ 1H, 1H, Increase/ 2020 2021 decrease 2020 2021 decrease Sales 44.6 49.3 4.8 Sales 43.0 46.4 3.4 Operating Operating 1.8 5.2 3.4 Inco
Slide 14: Consolidated Sales and Operating Income by Segment (3) (1H)
Consolidated Sales and Operating Income by Segment (3) (1H, 2020 vs. 1H, 2021) Aluminum Showa Denko Materials (Unit: Billions of Yen) (Unit: Billions of Yen) 1H, 1H, Increase/ 1H, 1H, Increase/ 2020 2021 decrease 2020*1 2021 decrease Sales 38.8 47.7 8.9 Sales 278.3 320.2 41.9 Operating Operating Inc
Slide 15: Non-operating income/expenses, Extraordinary profit/loss
Non-operating income/expenses, Extraordinary profit/loss Non-operating income/expenses (Unit: Billions of Yen) Increase/ 1H, 2020 1H, 2021 decrease Main factors Interest/Dividends income and expenses -0.9 -3.9 -3.0 Interest expenses increased Equity method newly applied to Equity in earnings of affi
Slide 16: Costs of the integration with Showa Denko Materials
Costs of the integration with Showa Denko Materials (Unit: Billions of Yen) 2021 Item 1H （CQ2) Full Year Forecast Post-merger integration (PMI) expenses* (Operating expenses) -3.1 (-2.3) -9.2 Interest on borrowing related to share acquisition, etc. (Non-operating expenses) -4.1 (-2.0) -8.1 (Net inco
Slide 17: Amortization of Goodwill and Intangible Fixed Assets Resulting from PPA
Amortization of Goodwill and Intangible Fixed Assets Resulting from PPA*1 at Showa Denko Materials Co., Ltd. (Unit: Billions of Yen) 2021 2021 2022 Amortization Amortization amount Forecast*2 Revised forecast*2 amount Initial 1H 2H Full Year Full Year forecast Intangible Fixed Assets 16.1 8.1 7.8 15
Slide 18: Consolidated Balance Sheet
Consolidated Balance Sheet Consolidated Balance Sheet (Unit: Billions of Yen) Dec. 31, Jun. 30, Increase/ Dec. 31, Jun. 30, Increase/ Assets Liabilities and net assets 2020 2021 decrease 2020 2021 decrease Cash and deposits 199.0 179.6 -19.4 Notes and accounts payable 164.4 178.3 14.0 Notes and acco
Slide 19: 2021 Full year Forecast
2021 Full year Forecast (Unit: Billions of Yen except EBITDA margin, Net income attributable to owners of the parent per share, Cash dividends per Share) 2021 2021 Increase/ 2020 2H Forecast decrease * 1H Forecast Net sales 973.7 1,400 426.3 693.4 706.6 Operating income -19.4 85.0 104.4 47.6 37.4 No
Slide 20: Summary of Sales and Operating Income by Segment, 2021 Forecast
Summary of Sales and Operating Income by Segment, 2021 Forecast (Unit: Billions of Yen) 2021 Increase/ 2021 2020 Forecast*2 decrease 1H 2H Forecast Sales 193.4 265.0 71.6 127.2 137.8 Petrochemicals O.I.*1 4.9 17.0 12.1 11.7 5.3 Sales 155.8 180.0 24.2 86.7 93.3 Chemicals O.I. 13.5 19.5 6.0 10.6 8.9 S
Slide 21: (Reference) Consolidated Cash Flows, results and 2021 Forecast
(Reference) Consolidated Cash Flows, results and 2021 Forecast (Unit: Billions of Yen) 2021 Forecast 1H, 1H, Increase/ 2020 2021 decrease 2H Full Year CF from operating 5.2 55.3 50.1 64.7 120.0 activities CF from investing -792.6 -10.4 782.2 22.4 12.0 activities Free CF -787.4 44.9 832.3 87.1 132.0
Slide 22: (Reference) Selected Data (Consolidated)
(Reference) Selected Data (Consolidated) (Unit: Billions of Yen) Increase/ 2021 1H, 2020 1H, 2021 decrease 2020 Forecast Capital expenditures 24.8 35.4 10.6 69.1 93.8 Depreciation and 19.4 41.4 22.0 60.6 83.9 amortization*1 R&D expenditures 9.7 23.7 14.0 34.4 49.6 Interest/dividend income -0.9 -3.9
Slide 23: (Reference) Capital expenditures Forecast by Segment for 2021
(Reference) Capital expenditures Forecast by Segment for 2021 (Unit: Billions of Yen) 1H, 1H, Increase/ 2021 Increase/ 2020 2020 2021 decrease Forecast decrease Petro- 2.8 1.0 -1.8 5.1 3.2 -1.9 chemicals Chemicals 6.9 5.4 -1.5 11.4 10.7 -0.7 Electronics 4.2 5.1 0.9 8.3 18.2 9.9 Inorganics 4.1 4.0 -0
Slide 24: (Reference) Depreciation Forecast by Segment for 2021
(Reference) Depreciation Forecast by Segment for 2021 (Unit: Billions of Yen) 1H, 1H, Increase/ 2021 Increase/ 2020 2020 2021 decrease Forecast Decrease Petro- 2.1 2.1 -0.0 4.2 4.2 0.0 chemicals Chemicals 4.7 4.9 0.2 9.5 9.8 0.3 Electronics 4.8 4.7 -0.1 9.4 9.7 0.3 Inorganics 4.2 4.0 -0.2 8.3 8.0 -0
Slide 25: Topics
Topics Segment Topics General Showa Denko Develops WelQuick™ to Bond Dissimilar Materials Quickly Showa Denko Contracts with Seagate to Jointly Develop HAMR Technology- based HD Media Electronics Showa Denko and Infineon Technologies Conclude Supply Contract and Development Agreement Announcement of
Slide 26: 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