Resonac Holdings Corporation · TSE:4004
Resonac — Showa Denko K.K. — Q3 2019 Earnings Presentation
27 slides from Resonac's earnings presentation, Nov 6, 2019
Slide 1: Third Quarter, 2019 Financial Results - Consolidated
We “Act” to touch the heart and make society better Third Quarter, 2019 Financial Results - Consolidated - SHOWA DENKO K.K. November 6, 2019 Motohiro Takeuchi, CFO Director & Corporate Officer Performance forecast and other statements pertaining to the future as contained in this presentation are ba
Slide 2: Consolidated Companies / Selected Data
Consolidated Companies Consolidated subsidiaries: 63 〔Compared with the end of 2018: +5 (newly consolidated 9, excluded 4), Compared with the end of June: +7* (newly consolidated 8, excluded 1)〕 【Newly consolidated】 【Excluded】 (Electronics) SHOKO Electronics K.K. PT. Showa Esterindo Indonesia (Pet
Slide 3: Summary
Summary Jan. 1 – Sept. 30, 2018 vs. Jan. 1 – Sept. 30, 2019 (Unit: Billions of Yen) Jan.-Sept. Jan.-Sept. Increase/ 2018 2019 decrease Net sales 724.9 695.6 -29.4 Operating income 134.5 109.3 -25.2 Non-operating income and expenses, net -0.3 -1.7 -1.4 Interest/Dividends income and expenses -0.7 0.1
Slide 4: Extraordinary Profit/Loss
Extraordinary Profit/Loss (Unit: Billions of Yen) Jan.-Sept. Jan.-Sept. Increase/ 2018 2019 decrease Extraordinary Profit 0.5 2.2 1.6 Gain on sales of non-current assets 0.1 0.7 0.6 Gain on sales of investment securities, net 0.3 1.3 1.1 Gain on liquidation of subsidiaries 0.2 － -0.2 Other 0 0.
Slide 5: Consolidated Sales by Segment
Consolidated Sales by Segment (Unit: Billions of Yen) Jan.-Sept. Jan.-Sept. Increase/ 2018 2019 decrease 【Olefins】 sales decreased (shipment volumes up after the 2018 large-scale shutdown maintenance, market prices down) Petrochemicals 191.6 189.6 -2.0 【Organic chemicals】 sales decreased (vinyl acet
Slide 6: Consolidated Operating Income by Segment
Consolidated Operating Income by Segment (Unit: Billions of Yen) Jan.-Sept. Jan.-Sept. Increase/ 2018 2019 decrease 【Olefins】 profit decreased (profit up after the 2018 shutdown maintenance, depreciation of naphtha inventory due to a fall in market price, Petrochemicals 15.5 13.3 -2.2 spread squeeze
Slide 7: Operating Income Breakdown by Factor
Operating Income Breakdown by Factor (Unit: Billions of Yen) Showa Denko 3rd Quarter, 2019 Consolidated Financial Results 7
Slide 8: Summary (CQ3 2018 vs CQ3 2019)
Summary CQ3 (Jul.1 – Sept.30), 2018 vs. CQ3 (Jul.1 – Sept.30), 2019 (Unit: Billions of Yen) Increase/ CQ3, 2018 CQ3, 2019 decrease Net sales 269.1 220.1 -49.0 Operating income 56.6 23.8 -32.8 Non-operating income and expenses, net -0 -1.1 -1.1 Interest/Dividends income and expenses -0.3 -0.1 0.1 Equ
Slide 9: Consolidated Sales by Segment
Consolidated Sales by Segment CQ3 (Jul.1 – Sept.30), 2018 v s. CQ3 (Jul.1 – Sept.30), 2019 (Unit: Billions of Yen) CQ3, CQ3, Increase/ 2018 2019 decrease 【Olefins】 sales decreased (market prices down) Petrochemicals 76.2 62.1 -14.1 【Organic chemicals】 sales decreased (vinyl acetate, ethyl acetate: m
Slide 10: Consolidated Operating Income by Segment
Consolidated Operating Income by Segment CQ3 (Jul.1 – Sept.30), 2018 v s. CQ3 (Jul.1 – Sept.30), 2019 (Unit: Billions of Yen) CQ3, CQ3, Increase/ 2018 2019 decrease 【Olefins】 profit decreased (market prices down) 【Organic chemicals】 profit decreased Petrochemicals 8.1 4.8 -3.3 (vinyl acetate, ethyl
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/ 2018 2019 decrease 2018 2019 decrease Cash and deposits 113.2 119.7 6.5 Notes and accounts payable 139.4 107.6 -31.9 Notes and accounts receivable 203.7 162.
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/ 2018 2019 decrease Total assets 1,075.0 1,069.2 -5.8 Interest-bearing debt 288.0 304.6 16.6 Debt/Equity ratio 0.62 times 0.61 times -0.01p Stockholders’ Equity ratio 41.5% 46.6% 5.1p Showa D
Slide 13: Interest-bearing Debt
Interest-bearing Debt （Unit: Billions of Yen) D/E ratio 500.0 1.20 1.20 1.16 450.0 0.94 400.0 383.1 368.8 359.9 346.7 0.62 350.0 0.58 0.61 304.6 300.0 288.0 286.2 250.0 200.0 2014 2015 2016 2017 2018 2019 2019 Jun.30 Sept. 30 Equity ratio 29.7% 31.5% 31.8% 34.3% 41.5% 45.6% 46.6% Showa Denko 3rd Qua
Slide 14: (Reference) Summary
(Reference) Summary CQ2 (Apr.1 – Jun.30), 2019 vs. CQ3 (Jul.1 – Sept.30), 2019 (Unit: Billions of Yen) Increase/ CQ2, 2019 CQ3, 2019 decrease Net sales 240.8 220.1 -20.7 Operating income 40.1 23.8 -16.3 Non-operating income and expenses, net 0.6 -1.1 -1.6 Interest/Dividends income and expenses 0.1 -
Slide 15: (Reference) Consolidated Sales by Segment
(Reference) Consolidated Sales by Segment CQ2 (Apr.1 – Jun.30), 2019 vs. CQ3 (Jul.1 – Sept.30), 2019 (Unit: Billions of Yen) CQ2, CQ3, Increase/ 2019 2019 decrease 【Olefins】 sales decreased (market prices down) 【Organic chemicals】 sales decreased (vinyl acetate, ethyl acetate: market prices Petroche
Slide 16: (Reference) Consolidated Operating Income by Segment
(Reference) Consolidated Operating Income by Segment CQ2 (Apr.1 – Jun.30), 2019 vs. CQ3 (Jul.1 – Sept.30), 2019 (Unit: Billions of Yen) CQ2, CQ3, Increase/ 2019 2019 decrease 【Olefins】 profit decreased (spread squeezed) 【Organic chemicals】 profit decreased (vinyl acetate, ethyl acetate: market price
Slide 17: (Reference) Quarterly Summary 2019
(Reference) Quarterly Summary 2019 (Unit: Billions of Yen) Jan.－Sept. 2019 CQ1, 2019 CQ2, 2019 CQ3, 2019 2019 Forecast* Net sales 234.7 240.8 220.1 695.6 980.0 Operating income 45.4 40.1 23.8 109.3 145.0 Net income attributable to owners of the parent 33.1 32.7 15.1 81.0 90.0 *Forecast was revised o
Slide 18: (Reference) Quarterly Operating Income
(Reference) Quarterly Operating Income 2019 (Unit: Billions of Yen) 2018 70.0 60.0 56.6 50.0 45.4 43.6 45.5 40.1 40.0 34.3 30.0 23.8 20.0 10.0 0.0 CQ1 CQ2 CQ3 CQ4 Showa Denko 3rd Quarter, 2019 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) 9.0 2019 9.0 2019 8.1 2018 2018 6.0 6.0 4.8 4.9 4.9 4.5 4.8 4.0 4.1 4.1 4.0 3.6 3.3 3.1 3.0 3.0 2.4 0.0 0.0 CQ1 CQ2 CQ3 CQ4 CQ1 CQ2 CQ3 CQ4 Showa Denko 3rd Quarter, 2019 Con
Slide 20: (Reference) Quarterly Operating Income by Segment
(Reference) Quarterly Operating Income by Segment 《Electronics》 《Inorganics》 (Unit: Billions of Yen) (Unit: Billions of Yen) 9.0 2019 50.0 2019 2018 2018 8.0 39.5 39.8 7.0 40.0 34.6 6.0 33.3 32.3 5.0 4.8 30.0 24.8 4.0 3.0 3.0 3.0 2.7 20.0 2.0 13.1 2.0 1.2 1.0 10.0 0.0 CQ1 CQ2 CQ3 CQ4 -0.3 -1.0 (note
Slide 21: (Reference) Quarterly Operating Income by Segment
(Reference) Quarterly Operating Income by Segment 《Aluminum》 《Others》 (Unit: Billions of Yen) (Unit: Billions of Yen) 3.0 2019 3.0 2019 2018 2018 2.5 2.5 2.0 2.0 1.5 1.3 1.4 1.4 1.5 1.0 0.9 0.9 1.0 0.7 0.5 0.5 0.4 0.4 0.3 0.3 0.3 0.3 0.3 0.2 0.0 0.0 CQ1 CQ2 CQ3 CQ4 CQ1 CQ2 CQ3 CQ4 (note) From 2019 S
Slide 22: Topics: 2030 GHG reduction target
Topics [General] ● Set 2030 GHG reduction target conforming to global standard In July 2019, SDK set a medium-term target figure to reduce emissions of greenhouse gases (GHGs) by 2030. In addition, recognizing importance of information disclosure to the global community, SDK has decided to announce
Slide 23: Topics: Acquired ILAG Group
Topics [General] ● Acquired ILAG Group, global non-stick coatings manufacturer In July 2019, SDK acquired all shares in ILAG Industrielack AG, which leads the ILAG Group (ILAG), a specialty non-stick coating materials manufacturing company. Non-stick coating materials (NSCs) are used on consumer goo
Slide 24: Topics: Aluminum alloy and polycarbonate joining technology
Topics [General] ● Established a technology to joint aluminum alloy and polycarbonate directly SDK developed a technology to joint aluminum alloy and polycarbonate resin directly. Mechanical joining with bolts and nuts and gluing is widely used to joint metal and plastics. Technologies to joint meta
Slide 25: Topics: Government approval for innovative use of data
Topics [General] ● Gained government approval for the Company’s plan for innovative use of data In July this year, SDK’s plan for establishing a new information platform was approved by the government as one of the “Plans for Innovative Use of Data for Industrial Activities.” In accordance with the
Slide 26: Topics: Petrochemicals - Commercialize 1,3-BG
Topics [Petrochemicals segment] ● Decided to commercialize 1,3-BG In October this year, SDK decided to commercialize 1,3-butylene glycol (1,3-BG), which is mainly used as raw material for cosmetics. SDK will finish installation of facilities to produce 1,3-BG in its Oita Complex by the end of 2019,
Slide 27: Topics: Electronics - Second generation SiC epitaxial wafers
Topics [Electronics segment] ● Developed second generation of high-grade SiC epitaxial wafers SDK has developed a second generation of high-grade silicon carbide (SiC) epitaxial wafers (HGE-2G) for power semiconductors. SDK has been mass-producing the first generation of high-grade epitaxial wafers