Resonac Holdings Corporation · TSE:4004
Resonac — Showa Denko K.K. — Q3 2018 Earnings Presentation
28 slides from Resonac's earnings presentation, Nov 8, 2018
Slide 1: Third Quarter, 2018 Financial Results - Consolidated
Evolving unique chemical company Third Quarter, 2018 Financial Results - Consolidated - SHOWA DENKO K.K. November 8, 2018 Toshiharu Kato, CFO Director & Corporate Officer Performance forecast and other statements pertaining to the future as contained in this presentation are based on the information
Slide 2: Consolidated Companies and Selected Data
Consolidated Companies Consolidated subsidiaries: 60 2 companies excluded compared with the end of 2017 Baotou Showa Rare Earth Hi-tech New Material Co., Ltd. (Electronics, liquidated) Be International Co. (Others, Merged by Shoko Co., Ltd.) 1 company excluded after the end of June Be Internationa
Slide 3: Summary (Jan.-Sept.)
Summary Jan. 1 – Sept. 30, 2017 vs. Jan. 1 – Sept. 30, 2018 (Unit: Billions of Yen) Jan.-Sept. Jan.-Sept. Increase/ 2017 2018 decrease Net Sales 563.8 724.9 161.1 Operating Income 55.9 134.5 78.6 Non-operating income and expenses, net -13.6 -0.3 13.3 Interest/Dividends income and expenses -1.0 -0.7
Slide 4: Extraordinary Profit/Loss
Extraordinary Profit/Loss (Unit: Billions of Yen) Jan.-Sept. Jan.-Sept. Increase/ 2017 2018 decrease Extraordinary Profit 0.4 0.5 0.2 Gain on sales of investment securities, net 0.2 0.3 0 Gain on liquidation of subsidiaries － 0.2 0.2 Other 0.1 0.1 -0 Extraordinary Loss -9.8 -3.1 6.8 Loss on sa
Slide 5: Consolidated Sales by Segment
Consolidated Sales by Segment (Unit: Billions of Yen) Jan.-Sept. Jan.-Sept. Increase/ 2017 2018 decrease 【Olefins】 sales maintained at the year-earlier level 183.2 191.6 8.5 (shipment volumes down due to shutdown maintenance, market prices up) Petrochemicals 【Organic chemicals】 sales increased (viny
Slide 6: Consolidated Operating Income by Segment
Consolidated Operating Income by Segment (Unit: Billions of Yen) Jan.-Sept. Jan.-Sept. Increase/ 2017 2018 decrease 【Olefins】 profit decreased (shipment volumes down due to shutdown maintenance, C4 fraction) Petrochemicals 24.1 15.5 -8.6 【Organic chemicals】 profit slightly decreased 【SunAllomer Ltd.
Slide 7: Operating Income Breakdown by Factor
Operating Income Breakdown by Factor 180.0 (Unit: Billions of Yen) 160.0 5.8 88.3 140.0 134.5 -14.9 120.0 100.0 80.0 60.0 55.9 -0.7 40.0 20.0 0.0 Jan.-Sept.'17 Volumes Price changes, Cost reductions Others Jan.-Sept.'18 net Showa Denko 3rd Quarter, 2018 Consolidated Financial Results 7
Slide 8: Summary (CQ3)
Summary CQ3 (Jul.1 – Sept.30), 2017 vs. CQ3 (Jul.1 – Sept.30), 2018 (Unit: Billions of Yen) Increase/ CQ3, 2017 CQ3, 2018 decrease Net Sales 191.6 269.1 77.5 Operating Income 20.9 56.6 35.7 Non-operating income and expenses, net -0.8 -0 0.8 Interest/Dividends income and expenses -0.4 -0.3 0.1 Equity
Slide 9: Consolidated Sales by Segment (CQ3)
Consolidated Sales by Segment CQ3 (Jul.1 – Sept.30), 2017 v s. CQ3 (Jul.1 – Sept.30), 2018 (Unit: Billions of Yen) CQ3, CQ3, Increase/ 2017 2018 decrease 【Olefins】 sales increased (market prices up due to naphtha prices up) 59.2 76.2 17.0 【Organic chemicals】 sales increased Petrochemicals (vinyl ace
Slide 10: Consolidated Operating Income by Segment (CQ3)
Consolidated Operating Income by Segment CQ3 (Jul.1 – Sept.30), 2017 v s. CQ3 (Jul.1 – Sept.30), 2018 (Unit: Billions of Yen) CQ3, CQ3, Increase/ 2017 2018 decrease 【Olefins】 profit slightly increased 【Organic chemicals】 profit increased Petrochemicals 7.9 8.1 0.1 (vinyl acetate, ethyl acetate: mark
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/ 2017* 2018 decrease 2017* 2018 decrease Cash and deposits 77.2 138.2 61.0 Notes and accounts payable 120.8 148.1 27.3 Notes and accounts receivable 176.0 213
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/ 2017* 2018 decrease Total assets 1,027.0 1,149.0 122.0 Interest-bearing debt 346.7 330.9 -15.9 Debt/Equity ratio 0.94 times 0.69 times -0.25p Stockholders’ Equity ratio 34.3% 40.3% 6.0p * Th
Slide 13: Interest-bearing Debt
Interest-bearing Debt （Unit: Billions of Yen) 1.20 D/E ratio 500.0 1.20 1.16 450.0 1.02 0.94 400.0 383.1 368.8 0.73 359.9 0.69 353.7 346.7 350.0 330.9 321.1 300.0 250.0 200.0 2013 2014 2015 2016 2017 2018 2018 Jun.30 Sept. 30 Equity ratio 30.6% 29.7% 31.5% 31.8% 34.3% 39.9% 40.3% * The tentative acc
Slide 14: (Reference) Summary CQ2 vs CQ3
(Reference) Summary CQ2 (Apr.1 – Jun.30), 2018 vs. CQ3 (Jul.1 – Sept.30), 2018 (Unit: Billions of Yen) Increase/ CQ2, 2018 CQ3, 2018 decrease Net Sales 241.2 269.1 27.9 Operating Income 43.6 56.6 13.0 Non-operating income and expenses, net 1.3 -0 -1.3 Interest/Dividends income and expenses -0.2 -0.3
Slide 15: (Reference) Consolidated Sales by Segment
(Reference) Consolidated Sales by Segment CQ2 (Apr.1 – Jun.30), 2018 vs. CQ3 (Jul.1 – Sept.30), 2018 (Unit: Billions of Yen) CQ2, CQ3, Increase/ 2018 2018 decrease 【Olefins】 sales increased (shipment volumes up after shutdown maintenance) 61.6 76.2 14.6 【Organic chemicals】 sales increased (vinyl ace
Slide 16: (Reference) Consolidated Operating Income by Segment
(Reference) Consolidated Operating Income by Segment CQ2 (Apr.1 – Jun.30), 2018 vs. CQ3 (Jul.1 – Sept.30), 2018 (Unit: Billions of Yen) CQ2, CQ3, Increase/ 2018 2018 decrease 【Olefins】 profit increased (shipment volumes up after shutdown maintenance) 【Organic chemicals】 profit increased (vinyl aceta
Slide 17: (Reference) Quarterly Summary
(Reference) Quarterly Summary 2018 (Unit: Billions of Yen) Jan.－Sept. 2018 CQ1, 2018 CQ2, 2018 CQ3, 2018 2018 Forecast* Net Sales 214.7 241.2 269.1 724.9 985.0 Operating Income 34.3 43.6 56.6 134.5 170.0 Net income attributable to owners of the parent 24.7 33.3 41.3 99.3 115.0 *Forecast was revised
Slide 18: (Reference) Quarterly Operating Income
(Reference) Quarterly Operating Income 2018 (Unit: Billions of Yen) 2017 60.0 56.6 50.0 43.6 40.0 34.3 30.0 20.9 21.8 19.7 20.0 15.3 10.0 0.0 CQ1 CQ2 CQ3 CQ4 (note) The tentative accounting policy applied to calculation of 2017 financial results due to consolidation of former SGL GE Holding GmbH has
Slide 19: (Reference) Quarterly Operating Income by Segment
(Reference) Quarterly Operating Income by Segment 《Petrochemicals》 《Chemicals》 (Unit: Billions of Yen) 2018 (Unit: Billions of Yen) 2018 12.0 6.0 2017 2017 10.6 5.2 10.0 4.9 9.3 5.0 4.4 8.1 4.1 7.9 3.8 8.0 4.0 3.6 3.1 6.0 5.6 3.0 4.1 4.0 3.3 2.0 2.0 1.0 0.0 0.0 CQ1 CQ2 CQ3 CQ4 CQ1 CQ2 CQ3 CQ4 Showa
Slide 20: (Reference) Quarterly Operating Income by Segment
(Reference) Quarterly Operating Income by Segment 《Electronics》 《Inorganics》 (Unit: Billions of Yen) (Unit: Billions of Yen) 10.0 44.0 2018 39.8 2018 2017 39.0 2017 8.0 33.3 34.0 6.1 6.3 29.0 6.0 6.0 24.8 24.0 4.5 19.0 4.0 3.5 2.9 2.8 14.0 2.0 9.0 4.6 4.0 2.3 0.2 0.0 CQ1 CQ2 CQ3 CQ4 -1.0 CQ1 CQ2 CQ3
Slide 21: (Reference) Quarterly Operating Income by Segment
(Reference) Quarterly Operating Income by Segment 《Aluminum》 《Others》 (Unit: Billions of Yen) 2018 (Unit: Billions of Yen) 2018 2017 1.5 2017 2.0 1.8 1.7 1.6 1.0 1.5 0.8 0.8 1.4 1.4 1.3 0.5 0.5 0.4 1.0 0.2 0.2 0.0 CQ1 CQ2 CQ3 CQ4 -0.1 0.0 CQ1 CQ2 CQ3 CQ4 -0.5 Showa Denko 3rd Quarter, 2018 Consolidat
Slide 22: Topics: ESG investment indexes
Topics [General] ● Incorporated into 3 ESG investment indexes for 2 straight years In July 2018, SDK was incorporated continuously for two straight years into three ESG indexes for investment: “FTSE Blossom Japan Index” provided by FTSE International Limited and Frank Russel Company (FTSE Russel, a
Slide 23: Topics: Early repayment of subordinated loan
Topics [General] ● Implemented early repayment of subordinated loan In October 2018, SDK made early repayment of ¥24 billion that it raised in a subordinated loan (the Subordinated Loan) in April 2014. The Subordinated Loan, with a 75% equity credit acknowledged by Japan Credit Rating Agency, Ltd. h
Slide 24: Topics: AI database system with Cinnamon
Topics [General] ● SDK and Cinnamon starts to develop database system equipped with AI to utilize technical documents SDK and Cinnamon Inc. (Cinnamon) decided to jointly develop a database system equipped with artificial intelligence (AI) to utilize technical documents. SDK and Cinnamon will promote
Slide 25: Topics: Naming rights to Oita Sports Park
Topics [General] ● Acquired naming rights to athletic facilities of Oita Sports Park In October 2018, SDK acquired the naming rights to athletic facilities of Oita Sports Park, located in Oita City, from Oita Prefecture. The naming rights are valid for five years, from March 1, 2019 to February 29,
Slide 26: Topics: Petrochemicals segment
Topics [Petrochemicals segment] ● JXTG Energy and SDK receive subsidy for project to strengthen bases of petroleum complexes in Oita Complex Area A joint project of SDK and JXTG Nippon Oil & Energy Corporation (JXTG Energy) to strengthen cooperation between oil refinery and petrochemical complex in
Slide 27: Topics: SiC epitaxial-wafer expansion
Topics [Others segment] ● Decided to start the third time expansion of high-grade SiC epitaxial-wafer production facilities in the last 2 years SDK decided to farther expand its capacity to produce high-quality-grade silicon carbide (SiC) epitaxial wafers for power semiconductors, which have already
Slide 28: Showa Denko 3rd Quarter, 2018 Consolidated Financial Results
Showa Denko 3rd Quarter, 2018 Consolidated Financial Results 28