Kureha Corporation · TSE:4023
Kureha — FY2020 3Q Earnings Presentation
24 slides from Kureha's earnings presentation, Feb 5, 2021
Slide 1: FY2020 3Q Results
FY2020 3Q Results February 5, 2021
Slide 2: Contents
1 Contents I. Highlights 3 II. FY2020 3Q Results • FY2020 3Q overview 5-7 • Segment results 8-12 • Financial position 13 III.FY2020 Full-Year Outlook • FY2020 forecast 15-19 IV.Supplementary • PGA business updates 21 • PGA business updates 22
Slide 3: I. Highlights
2 KUREHA CORPORATION Il. Highlights KUREHA a
Slide 4: Highlights
3 Highlights FY2020 3Q results (year-on-year analysis) • Delivered core operating profit of ¥14.6bn (+12.1%, ¥1.6bn) driven by PVDF (LiB binder applications), agrochemicals, home products, fishing lines and environmental businesses; lower fuel and raw materials cost; and fewer SG&A expenses • Oper
Slide 5: II. FY2020 3Q Results
4 II. FY2020 3Q Results (Period April 1, 2020 – December 31, 2020)
Slide 6: FY2020 3Q Overview
5 FY2020 3Q Overview (in billions of yen except per-share values) FY2019 FY2020 Change YOY Vs. FY2019 3Q 3Q 3Q • Revenue improved primarily due to higher Revenue 105.4 105.7 0.2 sales volumes in Other Operations, partially (0.2%) offset by Specialty Plastics Core operating profit 13.0 14.6 1.6 • Cor
Slide 7: FY2020 3Q Overview
6 FY2020 3Q Overview (in billions of yen) Segment results FY19 3Q FY19 3Q Revenue Operating profit FY20 3Q FY20 3Q 34.0 32.7 6.5 31.4 31.2 5.7 17.3 17.6 3.6 13.2 14.9 3.3 9.5 9.3 1.9 1.9 2.0 1.5 0.6 0.7 機能製品 Specialty Advanced 化学製品 Specialty 樹脂製品 Construction 建設関連 その他関連 Other 機能製品 Advanced 化学製品 Spec
Slide 8: FY2020 3Q Overview
7 FY2020 3Q Overview (in billions of yen) FY2019 3Q AM SC SP CO OO Total Revenue 31.4 17.3 34.0 9.5 13.2 105.4 (Notes) Segment operating profit 3.3 1.5 5.7 0.6 2.0 13.0 Intersegment adjustment -0.0 (FY2019 3Q) - Other income includes gains from Other income 13.1 sales of non-current assets (¥10.2bn)
Slide 9: Segment Results: Advanced Materials
8 Segment Results: Advanced Materials Vs. FY2019 3Q (billions of yen) FY2019 FY2020 Change Revenue Operating Profit 3Q 3Q % Advanced Materials Advanced plastics PPS: Profit declined on lower sales volumes Advanced plastics 20.4 20.1 -2% for automobile applications and lower equity income in affiliat
Slide 10: Segment Results: Specialty Chemicals
9 Segment Results: Specialty Chemicals (billions of yen) Vs. FY2019 3Q FY2019 FY2020 Change Revenue Operating Profit 3Q 3Q % Specialty Chemicals Agrochemicals Agrochemicals 3.6 5.6 +53% Higher profit driven by fungicides volume growth Pharmaceuticals 3.6 3.1 -15% Pharmaceuticals Industrial chemicals
Slide 11: Segment Results: Specialty Plastics
10 Segment Results: Specialty Plastics (billions of yen) Vs. FY2019 3Q FY2019 FY2020 Change Revenue Operating Profit 3Q 3Q % Specialty Plastics Home products / Fiber products Profit growth driven by higher home Home products 16.9 17.5 +3% products and ‘Seaguar’ fishing lines volumes Fiber products 2
Slide 12: Segment Results: Construction
11 Segment Results: Construction Vs. FY2019 3Q (billions of yen) FY2019 FY2020 Change Revenue Operating Profit 3Q 3Q % Construction Construction Revenue declined and profit remained on Construction 15.3 14.5 -5% par with prior year as higher civil Elimination engineering sales volumes offset the -5.
Slide 13: Segment Results: Other Operations
12 Segment Results: Other Operations (billions of yen) Vs. FY2019 3Q FY2019 FY2020 Change Revenue Operating Profit 3Q 3Q % Other Operations Environmental engineering Environmental Profit increased on higher volumes of low- 9.0 10.9 +21% level PCB wastes and 2019 typhoon- engineering related disaster
Slide 14: Financial Position
13 Financial Position (billions of yen) Assets Liabilities and Equity Mar. 31 Dec. 31 Mar. 31 Dec. 31 Change Change 2020 2020 2020 2020 Cash and cash equivalents 7.3 11.8 4.5 Trade and other payables 19.4 19.0 -0.5 Trade and other receivables 28.3 29.9 1.6 Interest-bearing debt 37.3 31.7 -5.6 Invent
Slide 15: III. FY2020 Full-Year Outlook
14 III. FY2020 Full-Year Outlook (Period April 1, 2020 – March 31, 2021)
Slide 16: FY2020 Forecast
15 FY2020 Forecast *FY2020 guidance was updated on February 5, 2021 Vs. FY2019 (in billions of yen except par-share values) FY2019 FY2020 Change • Revenue expected to decrease due to: Results Guidance YOY - Slower demand for PGA in the shale market - Effects of the bottle business divestment Revenue
Slide 17: FY2020 Forecast
16 FY2020 Forecast (in billions of yen) Segment performance forecast Revenue Core operating Core operating profit profit FY2019 FY2019 FY2020e 6.3 6.3 FY2020e 41.8 43.5 43.5 41.0 4.2 3.7 24.3 23.0 3.3 18.3 19.0 2.7 14.5 13.5 2.1 2.2 1.1 0.7 機能製品 化学製品 Advanced 樹脂製品 Construction Specialty Specialty 建設
Slide 18: FY2020 Forecast
17 FY2020 Forecast (in billions of yen) FY2019 AM SC SP CO OO Total Revenue 41.8 24.3 43.5 14.5 18.3 142.4 (Notes) Segment operating profit 3.7 2.1 6.3 1.1 2.7 16.0 Intersegment adjustment 0.0 (FY2019) - Other income for FY2019 includes Other income 13.4 gains from sales of non-current assets (¥10.2
Slide 19: FY2020 Forecast
18 FY2020 Forecast (in billions of yen) FY2020 Guidance: Previous vs. Current Revenue Previous Core operating profit Previous 43.5 42.0 Current 6.0 6.3 Current 4.2 3.3 3.5 19.0 2.6 18.5 機能製品 Advanced 化学製品 Specialty 樹脂製品 建設関連 その他関連 Specialty Construction Other 機能製品 Advanced 化学製品 Specialty 樹脂製品 Constr
Slide 20: FY2020 Forecast
19 FY2020 Forecast FY2020 guidance (in billions of yen) (previous) AM SC SP CO OO Total Revenue 42.0 23.0 41.0 13.5 18.5 138.0 Segment operating profit 2.6 2.2 6.0 0.7 3.5 15.0 Intersegment adjustment 0.0 Other income 0.5 Other expenses 1.0 Operating profit 14.5 Finance income 0.5 Finance costs 0.5
Slide 21: IV. Supplementary
20 KUREHA CORPORATION IV. Supplementary KUREHA a
Slide 22: PGA Business Updates
21 PGA Business Updates Quarterly business revenue PGA frac plugs sales 1.5 (¥ billion) (by Kureha Energy Solutions) (Number of frac plugs) 10,000 1.0 8,000 0.5 6,000 4,000 0 2,000 - FY2017 FY2018 FY2019 FY2020e PGA frac plugs PGA stock shapes - Recent monthly sales - (Number of frac plugs) • Shale
Slide 23: PVDF Business Updates
22 PVDF Business Updates Business revenue FY2016 – FY2020e (¥ billion) 200 20 • Kureha maintains a roughly 40% share in the automotive LiB cathode binder market; supplies to major South Korean and 15 150 Chinese lithium-ion battery (LiB) makers • After COVID-related disruption for LiB 10 production
Slide 24: Disclaimer
23 Disclaimer • These materials are supplied to provide a deeper understanding of our company, and are not intended to as a solicitation for investment or other actions. • These materials have been prepared by our company based on the information available at this point in time. However, actual perf