Denka Co., Ltd. · TSE:4061
Denka — H1 FY2021 Earnings Presentation
28 slides from Denka's earnings presentation, Nov 8, 2021
Slide 1: Results Presentation of FY2021 2Q
Results Presentation of FY2021 2Q (the 1st Half of the Fiscal year ending March 2022) Securities code：4061 Denka Co. ,Ltd November 8, 2021
Slide 2: Contents
Contents 1 FY2021 1st Half Results a) Summary （Year-on-Year, vs Forecast as of August） 03 b) Change Factors （Year-on-Year） 04 c) Graph of Operating Income Change Factors （ “ ） 05 d) By Segment （ “ ） 06 e) Change Factors By Segment （ “ ） 07-10 f) By Segment （vs Forecast as of August） 11 2 FY2021 Earn
Slide 3: FY2021 1st Half Results
Denka Possibility of chemistry FY2021 1st Half Results
Slide 4: Summary (Year-on-Year, vs Forecast as of August)
FY2021 1st Half Results a) Summary（Year-on-Year, vs Forecast as of August） FY 2021 FY 2020 FY 2021 1st Half 1st Half 1st Half Incr. Forecast as of Incr. Act Act (¥ billions） Decr. August Decr. Sales 160.3 191.1 + 30.8 185.0 + 6.1 Operating Income 12.1 25.2 + 13.2 22.0 + 3.2 Operating Margin 7.5% 13.
Slide 5: Change Factors (Year-on-Year)
FY2021 1st Half Results b) Change Factors （Year-on-Year） YoY (¥ billions) Sales 191.1 billion + 30.8 1. Volume：Expansion and growth of demand （COVID-19 rapid antigen test kit, xEV-related, semiconductor-related, etc） Recovery of demand from COVID-19 impact（Chloroprene Rubber, etc） + 31.2 2. Pricing
Slide 6: Graph of Operating Income Change Factors (Year-on-Year)
FY2021 1st Half Results c) Graph of Operating Income Change Factors（Year-on-Year） + 15.4 (¥ billions) + 20.1 - 17.8 25.2 - 4.5 - 0.0 12.1 Expansion and growth of demand(COVID-19 rapid Styrene-based Manufacturing antigen test kit, xEV-related, products sales price raw material costs and semiconductor
Slide 7: By Segment (Year-on-Year)
FY2021 1st Half Results d) By Segment （Year-on-Year） FY 2020 FY 2021 Sales 1st Half 1st Half Incr. (¥ billions) Act Act Decr. Pricing Volume Other* Electronics & Innovative Products 36.7 43.8 + 7.1 + 1.3 + 7.8 - 1.9 Life Innovation 16.2 25.3 + 9.1 - 0.4 + 9.6 - 0.1 Elastomer & Infrastructure Solutio
Slide 8: Electronics & Innovative Products (Year-on-Year)
FY2021 1st Half Results e) Electronics & Innovative Products（Year-on-Year） FY 2021 FY 2020 FY 2021 1st Half (¥ billions） 1st Half 1st Half Incr. Forecast as Act Act Decr. Pricing Volume Other of August Sales 36.7 43.8 + 7.1 + 1.3 + 7.8 - 1.9* 43.0 Operating Income 6.6 9.2 + 2.6 + 1.3 + 4.1 - 2.8 8.0
Slide 9: Life Innovation (Year-on-Year)
FY2021 1st Half Results e) Life Innovation （Year-on-Year） FY 2021 FY 2020 FY 2021 1st Half (¥ billions） 1st Half 1st Half Incr. Forecast as Act Act Decr. Pricing Volume Other of August Sales 16.2 25.3 + 9.1 - 0.4 + 9.6 - 0.1* 24.0 Operating Income 2.4 10.7 + 8.3 - 0.4 + 9.1 - 0.4 8.5 *Change in acco
Slide 10: Elastomer & Infrastructure Solutions (Year-on-Year)
FY2021 1st Half Results e) Elastomer & Infrastructure Solutions（Year-on-Year） FY 2021 FY 2020 FY 2021 1st Half (¥ billions） 1st Half 1st Half Incr. Forecast as Act Act Decr. Pricing Volume Other of August Sales 41.8 51.4 + 9.6 + 0.7 + 10.1 - 1.2* 51.0 Operating Income -0.1 0.0 + 0.2 + 0.7 + 5.2 - 5.
Slide 11: Polymer Solutions (Year-on-Year)
FY2021 1st Half Results e) Polymer Solutions （Year-on-Year） FY 2021 FY 2020 FY 2021 1st Half (¥ billions） 1st Half 1st Half Incr. Forecast as Act Act Decr. Pricing Volume Other of August Sales 50.4 63.2 + 12.8 +13.8 - 0.5 - 0.4* 62.0 Operating Income 2.9 4.3 + 1.5 +13.8 + 1.0 - 13.3 4.5 *Change in a
Slide 12: By Segment (vs Forecast as of August)
FY2021 1st Half Results f) By Segment （vs Forecast as of August） FY 2021 FY 2021 Sales 1st Half 1st Half (¥ billions) Forecast as of Incr. Act August Decr. Pricing Volume Electronics & Innovative Products 43.0 43.8 + 0.8 + 0.3 + 0.5 Life Innovation 24.0 25.3 + 1.3 + 0.2 + 1.0 Elastomer & Infrastruct
Slide 13: FY2021 Earnings Forecast
Den ka Possibility of chemistry FY2021 Earnings Forecast it Denka Co, Lid. All Rights Reserved. | 12
Slide 14: Summary (vs Forecast at the beginning, Year-on-Year)
FY2021 Earnings Forecast a) Summary（vs Forecast at the beginning, Year-on-Year） FY2021 FY2021 FY 2020 Initial Revised Incr. Incr. Act (¥ billions） Forecast Forecast Decr. Decr. Sales 365.0 395.0 + 30.0 354.4 + 40.6 Operating Income 42.0 44.0 + 2.0 34.7 + 9.3 Operating Margin 11.5% 11.1% △ 0.4% 9.8%
Slide 15: Change Factors (vs Forecast at the beginning)
FY2021 Earnings Forecast b) Change Factors （vs Forecast at the beginning） Vs. Initial forecast (¥ billions) Sales 395.0 billion +30.0 1. Volume ：Positive (upwards trend in semiconductor-related products) Negative (temporary factors such as Hurricane Ida at DPE USA and downward trend in influenza vac
Slide 16: Graph of Operating Income Change Factors (vs Forecast)
FY2021 Earnings Forecast c) Graph of Operating Income Change Factors(vs Forecast at the beginning) (¥ billions) + 27.0 44.0 42.0 + 1.5 - 20.4 - 3.3 - 2.8 Upwards trend in COVID-19 rapid semiconductor- antigen test kit Manufacturing related products Styrene-based costs and Reduced sales of products s
Slide 17: By Segment (vs Forecast at the beginning)
FY2021 Earnings Forecast d) By Segment （vs Forecast at the beginning） FY2021 FY2021 Sales Initial Revised Incr. (¥ billions) Forecast Forecast Decr. Pricing Volume Electronics & Innovative Products 85.0 90.0 + 5.0 + 2.2 + 2.8 Life Innovation 40.0 50.0 +10.0 + 8.8 + 1.2 Elastomer & Infrastructure Sol
Slide 18: Electronics & Innovative Products (vs Forecast)
FY2021 Earnings Forecast e) Electronics & Innovative Products（vs Forecast at the beginning） FY2021 FY2021 Sales trends Initial Revised Incr. • Increased xEV-related, 5G communications-related demand (¥ billions) Forecast Forecast Decr. is expected to be in line with the initial forecast. Spherical a
Slide 19: Life Innovation (vs Forecast)
FY2021 Earnings Forecast e) Life Innovation （vs Forecast at the beginning） FY2021 FY2021 Sales trends Initial Revised Incr. • Maintain sales pricing that exceeds initial forecasts (¥ billions) Forecast Forecast Decr. • Within the domestic market, supply to the Japanese government has achieved COVID-
Slide 20: Elastomer & Infrastructure Solutions (vs Forecast)
FY2021 Earnings Forecast e) Elastomer & Infrastructure Solutions （vs Forecast at the beginning） FY2021 FY2021 Sales trends Initial Revised Incr. • We have seen a temporary slowdown in medical (¥ billions) Forecast Forecast Decr. glove applications, but we expect a healthy recovery in demand in indus
Slide 21: Polymer Solutions (vs Forecast)
FY2021 Earnings Forecast e) Polymer Solutions（vs Forecast at the beginning） FY2021 FY2021 Sales trends Initial Revised Incr. • Demand for use in LGP applications in TVs has run its (¥ billions) Forecast Forecast Decr. course, and will fall below initial forecasts. Other applications MS resin includi
Slide 22: By Segment (Year-on-Year)
FY2021 Earnings Forecast f) By Segment （Year-on-Year） FY2021 Sales FY 2020 Revised Incr. (¥ billions) Act Forecast Decr. Pricing Volume Other* Electronics & Innovative Products 77.7 90.0 + 12.3 + 4.3 + 11.4 - 3.5 Life Innovation 42.9 50.0 + 7.1 - 0.5 + 7.7 - 0.1 Elastomer & Infrastructure Solutions
Slide 23: Key Performance Indicators
FY2021 Earnings Forecast g) Key Performance Indicators FY2020 FY2021 FY2021 FY2021 FY2020 1H 1H Initial Revised Actual Actual Actual Forecast Forecast (¥ billions) (Apr-Mar) (Apr-Sep) (Apr-Sep) (Apr-Mar) (Apr-Mar) Investment 17.1 15.4 42.3 43.0 43.0 Depreciation 11.5 11.5 22.9 23.5 23.5 R&D 7.4 7.4
Slide 24: Shareholder Returns
FY2021 Earnings Forecast h) Shareholder Returns FY2021 FY2017 FY2018 FY2019 FY2020 Revised Actual Actual Actual Actual Forecast Net Income (billion) 23.0 25.0 22.7 22.8 29.0 Dividend per share* （¥） 105.0 120.0 125.0 125.0 145.0 Mid-term 70.0 End 75.0 Dividend (billion) 9.2 10.5 10.8 10.8 12.5 Shareh
Slide 25: (Reference) Quarterly trends (by segment)
FY2021 Earnings Forecast i) (Reference) Quarterly trends (by segment) FY2019 FY2020 FY2021 Sales H2 (¥ billions) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Forecast (3Q, 4Q) Electronics & Innovative Products 17.3 20.0 18.3 20.0 17.1 19.6 20.0 21.1 21.0 22.8 46.2 Life Innovation 5.1 9.9 13.7 6.8 5.3 10.9 20.5 6.3
Slide 26: FY2022 Numerical Targets of Denka Value-Up
FY2022 Management Plan j) FY2022 Numerical Targets of Denka Value-Up Operating FY2021 FY2022 Year- FY2020 Income Actual Revised Management on- (¥ billions) Forecast Plan year Main measures Spherical alumina: Electronics & Increasing xEV and 5G communications-related demand, effect of expansion in Si
Slide 27: Cautionary statement regarding forward-looking information
Cautionary statement regarding forward-looking information Target figures in this material are not forecasts of business results. In addition, any description relating to the future in this material is subject to known or unknown risks and uncertainties, although it is base on management's current a
Slide 28: Denka Co., Ltd.
Inquiries regarding this material Corporate Communications Dept, Denka Co., Ltd. TEL 03-5290-5511 ＵＲＬ https://www.denka.co.jp/eng/