Resonac Holdings Corporation · TSE:4004
Resonac — Showa Denko K.K. — Q3 2013 Earnings Presentation
26 slides from Resonac's earnings presentation, Oct 31, 2013
Slide 1: Third Quarter, 2013 Financial Results - Consolidated
Evolving unique chemical company Third Quarter, 2013 Financial Results - Consolidated - SHOWA DENKO K.K. October 31, 2013 Yoshikazu Sakai, CFO Performance forecast and other statements pertaining to the future as contained in this presentation are based on the information available as of today and a
Slide 2: Consolidated Companies
Consolidated Companies Consolidated subsidiaries: 42 (No changes from the end of June, 2013) 4 companies newly consolidated, compared with the end of 2012. (Korea Showa Chemicals Co., Showa Denko Sichuan Carbon Inc., Nagoya Kenmazai Kogyo K.K., SHOKO (Shanghai) Co., Ltd.) Equity method applied:
Slide 3: Summary Jan.-Sept. 2012 vs. 2013
Summary Jan. 1 – Sept. 30, 2012 vs. Jan. 1 – Sept. 30, 2013 (Unit: Billions of Yen) Jan.-Sept.2012 Jan.-Sept.2013 Increase/decrease Net Sales 546.9 617.5 70.6 Operating Income 23.8 15.8 -8.0 Non-operating income and expense -4.1 -3.5 0.6 Interest/Dividend income less expenses -2.7 -2.1 0.6 Foreign e
Slide 4: Extraordinary Profit/Loss
Extraordinary Profit/Loss (Unit: Billions of Yen) Jan.-Sept. Jan.-Sept. Increase/decrease 2012 2013 Extraordinary Profit 0.5 1.9 1.4 Gain on sale of investment securities 0.1 1.0 0.9 Compensation for contract cancellation － 0.8 0.8 Other 0.4 0.1 -0.2 Extraordinary Loss -7.7 -3.7 4.0 Loss on sa
Slide 5: Consolidated Sales by Segment
Consolidated Sales by Segment (Unit: Billions of Yen) Jan.-Sept. Jan.-Sept. Increase/ 2012 2013 decrease Olefins: sales increased (shipment volumes up due to the settlement of the problem with ethylene equipment in CQ1, 2012, Petrochemicals 131.4 207.6 76.1 price up) Organic chemicals: sales increas
Slide 6: Consolidated Operating Income by Segment
Consolidated Operating Income by Segment (Unit: Billions of Yen) Jan.-Sept. Jan.-Sept. Increase/ 2012 2013 decrease Olefins: profit increased (shipment volumes up) Petrochemicals -2.2 2.0 4.1 Organics chemicals: profit increased (shipment volumes up) Basic chemicals: profit increased (profit of AN m
Slide 7: Summary CQ3 2012 vs. CQ3 2013
Summary CQ3 (Jul.1 – Sept.30), 2012 vs. CQ3 (Jul.1 – Sept.30), 2013 (Unit: Billions of Yen) CQ3, 2012 CQ3, 2013 Increase/decrease Net Sales 194.6 216.1 21.5 Operating Income 7.8 9.1 1.3 Non-operating income and expense -2.5 -2.2 0.3 Interest/Dividend income less expenses -0.9 -0.9 0.1 Equity in earn
Slide 8: Consolidated Sales by Segment
Consolidated Sales by Segment CQ3 (Jul.1 – Sept.30), 2012 v s. CQ3 (Jul.1 – Sept.30), 2013 (Unit: Billions of Yen) CQ3, CQ3, Increase/ 2012 2013 decrease Olefins: sales increased (price up reflecting the rise in price of raw material Petrochemicals 58.8 72.2 13.3 naphtha) Organic chemicals: sales in
Slide 9: Consolidated Operating Income by Segment
Consolidated Operating Income by Segment CQ3 (Jul.1 – Sept.30), 2012 v s. CQ3 (Jul.1 – Sept.30), 2013 (Unit: Billions of Yen) CQ3, CQ3, Increase/ 2012 2013 decrease Olefins: profit increased (improvement of the difference between procurement and consumption prices for Petrochemicals 0.0 2.0 2.0 raw
Slide 10: 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 2012 2013 /decrease 2012 2013 /decrease Cash and deposits 51.6 47.8 -3.8 Notes and accounts payable 107.2 103.0 -4.3 Notes and accounts receivable 138.2 144.1 6.0
Slide 11: Total Assets, Interest-bearing Debt, D/E ratio and Stockholders' Equity ratio
Total Assets, Interest-bearing Debt, D/E ratio and Stockholders’ Equity ratio (Unit: Billions of Yen, times, %) Increase/ Dec.31, 2012 Sept.30, 2013 Decrease Total assets 933.2 953.8 20.7 Interest-bearing debt 342.3 365.1 22.8 Debt/Equity ratio 1.09 times 1.08 times 0.01p Stockholders’ Equit
Slide 12: Interest-bearing Debt
Interest-bearing Debt （Unit: Billions of Yen) 450.0 D/E Ratio 1.48 1.30 1.23 1.17 1.09 1.10 1.08 400.0 392.9 373.9 365.3 365.1 351.0 347.3 350.0 342.3 300.0 2008 2009 2010 2011 2012 2013 2013 Jun.30 Sept.30 Equity ratio 25.0% 25.5% 26.1% 26.8% 29.2% 29.6% 30.6% Showa Denko 3rd Quarter, 2013 Consolid
Slide 13: (Reference) Summary
(Reference) Summary CQ2 (Apr.1 – Jun.30), 2013 v s. CQ3 (Jul.1 – Sept.30), 2013 (Unit: Billions of Yen) Increase/ CQ2, 2013 CQ3, 2013 decrease Net Sales 208.9 216.1 7.2 Operating Income 3.3 9.1 5.8 Non-operating income and expense -1.8 -2.2 -0.3 Interest/Dividend income less expenses -0.5 -0.9 -0.3
Slide 14: Consolidated Sales by Segment
Consolidated Sales by Segment CQ2 (Apr.1 – Jun.30), 2013 v s. CQ3 (Jul.1 – Sept.30), 2013 (Unit: Billions of Yen) CQ2, CQ3, Increase/ 2013 2013 Decrease Olefins: sales increased (shipment volumes up) Petrochemicals 69.5 72.2 2.7 Organic chemicals: sales maintained at the CQ2, 2013 level Basic chemic
Slide 15: Consolidated Operating Income by Segment
Consolidated Operating Income by Segment CQ2 (Apr.1 – Jun.30), 2013 v s. CQ3 (Jul.1 – Sept.30), 2013 (Unit: Billions of Yen) CQ2, CQ3, Increase/ 2013 2013 Decrease Olefins: profit increased (shipment volumes up, price up) Petrochemicals -1.0 2.0 3.0 Organic chemicals: profit maintained at the CQ2, 2
Slide 16: (Reference) Quarterly Summary 2013
(Reference) Quarterly Summary 2013 (Unit: Billions of Yen) Jan.‐Sept. 2013 CQ1, 2013 CQ2, 2013 CQ3, 2013 2013 Forecast * Net Sales 192.5 208.9 216.1 617.5 850.0 Operating Income 3.4 3.3 9.1 15.8 26.0 Net Income 4.1 -1.9 4.6 6.7 10.0 Forecast was revised on Jul. 29, 2013 Showa Denko 3rd Quarter, 2013
Slide 17: (Reference) Quarterly Sales and Operating Income by Segment
(Reference) Quarterly Sales and Operating Income by Segment (Unit: Billions of Yen) Jan.‐Sept. 2013 CQ1, 2013 CQ2, 2013 CQ3, 2013 2013 Forecast ** Sales * 65.9 69.5 72.2 207.6 270.0 Petrochemicals O.I. 0.9 -1.0 2.0 2.0 1.5 Sales 29.7 32.2 33.6 95.5 136.0 Chemicals O.I. 0.8 -0.2 0.7 1.3 4.0 Sales 32.
Slide 18: (Reference) Quarterly Operating Income
(Reference) Quarterly Operating Income (Unit: Billions of Yen) 《Corporate》 2013 2012 15.0 10.0 9.5 9.1 7.8 6.5 5.0 4.3 3.4 3.3 0.0 CQ1 CQ2 CQ3 CQ4 Showa Denko 3rd Quarter, 2013 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) 2.5 2013 2013 2.0 2012 2012 2.0 1.5 1.2 0.9 0.5 1.0 0.1 0.8 0.0 0.7 0.6 CQ1 CQ2 CQ3 CQ4 -0.5 0.0 -1.0 CQ1 CQ2 CQ3 CQ4 -1.5 -0.2 -0.1 -0.6 -2.5 -2.3 -1.0 -0.8 Showa Denko 3rd
Slide 20: (Reference) Quarterly Operating Income by Segment
(Reference) Quarterly Operating Income by Segment 《Electronics》 《Inorganics》 (Unit: Billions of Yen) 12.0 2013 4.0 (Unit: Billions of Yen) 2013 2012 2012 9.1 8.7 8.6 3.0 8.0 5.9 2.0 5.8 5.8 1.5 4.0 1.0 0.8 0.5 2.5 0.3 0.1 0.0 CQ1 CQ2 CQ3 CQ4 -0.1 0.0 -0.6 CQ1 CQ2 CQ3 CQ4 -1.0 Showa Denko 3rd Quarter
Slide 21: (Reference) Quarterly Operating Income by Segment
(Reference) Quarterly Operating Income by Segment 《Aluminum》 《Others》 (Unit: Billions of Yen) (Unit: Billions of Yen) 2.5 2013 2013 1.0 2012 2012 1.9 1.9 0.5 1.5 1.4 0.2 1.0 0.1 0.1 0.0 0.0 0.6 CQ1 CQ2 CQ3 CQ4 0.5 -0.1 -0.3 -0.5 -0.6 CQ1 CQ2 CQ3 CQ4 -0.2 -0.1 -0.5 -1.0 Showa Denko 3rd Quarter, 2013
Slide 22: Topics: Corporate
Topics Corporate ● Launch of six-inch SiC epitaxial wafers for power devices ◆In October, SDK began commercial shipments of silicon carbide (SiC) epitaxial wafers with a diameter of six inches ‐the largest size currently available on the world market‐ for use in power devices. As the commercial pr
Slide 23: Topics: Petrochemicals
Topics Petrochemicals ●Construction of new ethyl acetate plant based on new technology ◆SDK decided to build a 100,000t/y ethyl acetate plant at its Oita Complex using its proprietary process technology (direct addition of ethylene to acetic acid). The plant will start commercial production in Jun
Slide 24: Topics: Chemicals
Topics Chemicals ●Discovery of anti-glycation effect of methyl hesperidin ◆SDK discovered powerful anti-glycation effect of methyl hesperidin, which is a derivative of citrus- based hesperidin, and filed for patent. SDK started sample shipments of methyl hesperidin as raw material for anti-aging c
Slide 25: Topics: Chemicals
Topics Chemicals ●Construction of new high silica zeolite plant ◆Union Showa (USKK), a joint venture between SDK and UOP LLC, of the United States, decided to start producing high silica zeolite in Japan. Construction of a new production facility began within the premises of SDK’s Higashinagahara
Slide 26: Topics: Aluminum
Topics Aluminum ●Completion of high-purity aluminum foil plant in China ◆In October, SDK completed a new plant in Nantong City, Jiangsu Province, China, for producing high-purity aluminum foil for electrolytic capacitors. Showa Denko Aluminum (Nantong) Co., Ltd., SDK’s subsidiary established in No