Resonac Holdings Corporation · TSE:4004
Resonac — Showa Denko K.K. — Q1 2020 Earnings Presentation
21 slides from Resonac's earnings presentation, May 15, 2020
Slide 1: First Quarter, 2020 Financial Results - Consolidated
We “Act” to touch the heart and make society better First Quarter, 2020 Financial Results - Consolidated - SHOWA DENKO K.K. May 15, 2020 Motohiro Takeuchi, CFO Representative Director & Managing Corporate Officer Performance forecast and other statements pertaining to the future as contained in this
Slide 2: Consolidated Companies and Selected Data
Consolidated Companies Consolidated subsidiaries: 61 Newly consolidated or excluded: none Equity method applied: 11 Newly applied or excluded: none Selected Data (Average figure) Jan.- Mar. Jan.- Mar. Increase/ 2019 2020 decrease Exchange rates: 110.2 108.9 Yen appreciated ¥/US$ by ¥1.3/$ ¥/€ 1
Slide 3: Summary
Summary (Unit: Billions of Yen) Increase/ CQ1, 2019 CQ1, 2020 decrease Net Sales 234.7 171.7 -63.0 Operating Income 45.4 2.5 -42.9 Non-operating income and -1.2 0.8 1.9 expenses, net Interest/Dividends income and expenses 0 0.1 0 Equity in earnings of affiliates -0.5 0.4 0.9 Foreign exchange gains o
Slide 4: Extraordinary Profit/Loss
Extraordinary Profit/Loss (Unit: Billions of Yen) Increase/ CQ1, 2019 CQ1, 2020 decrease Extraordinary Profit 0.3 1.7 1.4 Gain on sales of investment securities 0 1.5 1.5 Other 0.3 0.2 -0.1 Extraordinary Loss -0.7 -1.5 -0.8 Loss on sales and retirement of noncurrent -0.5 -0.8 -0.4 assets Other
Slide 5: Consolidated Sales and Operating Income by Segment (1)
Consolidated Sales and Operating Income by Segment (1) (Unit: Billions of Yen) CQ1, CQ1, Increase/ decrease Item 2019 2020 Olefins: sales decreased (shipment volumes down, market prices down) Organic chemicals: sales decreased Sales 62.7 55.0 -7.7 (vinyl acetate, ethyl acetate: shipment volumes down
Slide 6: Consolidated Sales and Operating Income by Segment (2)
Consolidated Sales and Operating Income by Segment (2) (Unit: Billions of Yen) CQ1, CQ1, Increase/ decrease Item 2019 2020 Ceramics: sales decreased (shipment volumes of abrasives, fine ceramics for 72.4 21.4 -51.0 electronics down) Sales Graphite electrodes: sales significantly decreased (shipment
Slide 7: Consolidated Balance Sheet
Consolidated Balance Sheet (Unit: Billions of Yen) Assets Dec. 31, Mar. 31, Increase/ Liabilities and net assets Dec. 31, Mar. 31, Increase/ 2019 2020 decrease 2019 2020 decrease Cash and deposits 122.1 115.5 -6.6 Notes and accounts payable 117.5 103.0 -14.5 Notes and accounts receivable 170.3 152.8
Slide 8: Total Assets, Interest-bearing Debt and D/E ratio
Total Assets Interest-bearing Debt and D/E ratio (Unit: Billions of Yen) Increase/ Dec. 31, 2019 Mar. 31, 2020 decrease Total assets 1,076.4 1,051.6 -24.8 Interest-bearing debt 298.5 325.1 26.6 Debt/Equity ratio 0.60 times 0.69 times 0.09p Stockholders’ Equity ratio 46.4% 45.1% -1.3p Showa D
Slide 9: (Reference) Quarterly Operating Income
(Reference) Quarterly Operating Income 2020 (Unit: Billions of Yen) 2019 70.0 60.0 50.0 45.4 40.1 40.0 30.0 23.8 20.0 11.5 10.0 2.5 0.0 CQ1 CQ2 CQ3 CQ4 Showa Denko 1st Quarter, 2020 Consolidated Financial Results 9
Slide 10: (Reference) Quarterly Operating Income by Segment
(Reference) Quarterly Operating Income by Segment 《Petrochemicals》 《Chemicals》 (Unit: Billions of Yen) (Unit: Billions of Yen) 8.0 2020 9.0 2020 2019 2019 6.0 5.0 4.5 4.8 4.0 3.9 4.0 4.1 3.1 3.0 2.4 2.3 2.0 0.0 CQ1 CQ2 CQ3 CQ4 CQ1 CQ2 CQ3 CQ4 -0.2 -1.0 Showa Denko 1st Quarter, 2020 Consolidated Fina
Slide 11: (Reference) Quarterly Operating Income by Segment
(Reference) Quarterly Operating Income by Segment 《Electronics》 《Inorganics》 (Unit: Billions of Yen) (Unit: Billions of Yen) 9.0 2020 50.0 2020 2019 2019 8.0 39.5 7.0 40.0 6.0 32.3 30.0 5.0 4.0 20.0 3.0 13.1 2.0 1.9 2.0 10.0 1.0 1.2 1.0 4.4 0.8 0.0 0.0 CQ1 CQ2 CQ3 CQ4 CQ1 CQ2 CQ3 CQ4 -1.0 -0.3 Showa
Slide 12: (Reference) Quarterly Operating Income by Segment
(Reference) Quarterly Operating Income by Segment 《Aluminum》 《Others》 (Unit: Billions of Yen) (Unit: Billions of Yen) 3.0 2020 3.0 2020 2019 2019 2.5 2.5 2.0 2.0 1.5 1.5 1.0 0.9 1.0 0.9 0.5 0.3 0.3 0.5 0.3 0.3 0.3 0.2 0.2 0 0.0 0.0 CQ1 CQ2 CQ3 CQ4 CQ1 CQ2 CQ3 CQ4 Showa Denko 1st Quarter, 2020 Consol
Slide 13: Topics [General]
Topics [General] ● Announcement regarding results of tender offer for shares in Hitachi Chemical Company, Ltd. and change in subsidiary ● Announcement regarding fundraising, capital reduction of the consolidated subsidiary and change in the specified subsidiary company For details, please refer to o
Slide 14: Topics [General]
Topics [General] ● Introduced AI system to examine capital investment SDK introduced an artificial-intelligence-based search system to look efficiently for information useful for capital investment evaluation from the company’s knowledge databases. This new search engine uses an AI system named “KIB
Slide 15: Topics [General]
Topics [General] ● Developed AI-based image analysis system to improve spherical alumina production SDK developed an artificial-intelligence-based image analysis system for spherical alumina production in cooperation with BLUE TAG. SDK will start using the system at its production line in the first
Slide 16: Topics [General]
Topics [General] ● Cooperatively proved that AI speeds up development of flexible transparent film SDK, National Institute of Advanced Industrial Science and Technology (AIST), New Energy and Industrial Technology Development Organization (NEDO) and Research Association of High-Throughput Design and
Slide 17: Topics [Chemicals segment]
Topics [Chemicals segment] ● Decided to establish second factory in Shanghai to produce electronic high-purity gases In January 2020, SDK decided to establish its subsidiary’s second factory in Shanghai to produce high-purity gases for electronics. Shanghai Showa Electronics Materials Co., Ltd. (SSE
Slide 18: Topics [Chemicals segment]
Topics [Chemicals segment] ● Decided to streamline domestic production of unsaturated polyester resin and vinyl ester resin SDK decided to terminate operation of its production lines to synthesize unsaturated polyester resin (UP) and vinyl ester resin (VE) at Isesaki Plant by the end of June 2021, a
Slide 19: Topics [Electronics segment]
Topics [Electronics segment] ● Developed HAMR-technology-based HD media SDK developed the technology of manufacturing media for next-generation hard disk drives (HDDs) based on the Heat Assisted Magnetic Recording (HAMR*) technology. Due to the rapid expansion of cloud service, video content, and im
Slide 20: Topics [Electronics segment]
Topics [Electronics segment] ● Decided to install equipment to mass-produce SPALFTM packaging material for large onboard LIBs Showa Denko Packaging Co., Ltd. (SPA), a consolidated subsidiary of SDK, has developed a new product to be added to the lineup of SPALFTM aluminum laminate film which is used
Slide 21: Topics [Inorganics segment]
Topics [Inorganics segment] ● Started labor-management consultations about realignment of graphite electrode production sites in Europe Labor-management consultations have started concerning planned closure of a production site in Meitingen, Germany, under the jurisdiction of consolidated subsidiari