Resonac Holdings Corporation · TSE:4004
Resonac — Showa Denko K.K. — Q3 2020 Earnings Presentation
30 slides from Resonac's earnings presentation, Nov 5, 2020
Slide 1: Third Quarter, 2020 Financial Results - Consolidated
We “Act” to touch the heart and make society better Third Quarter, 2020 Financial Results - Consolidated - SHOWA DENKO K.K. November 5, 2020 Motohiro Takeuchi, CFO Representative Director & Managing Corporate Officer Performance forecast and other statements pertaining to the future as contained in
Slide 2: Consolidated Companies and Selected Data
Consolidated Companies Consolidated subsidiaries: 152 (newly consolidated: 91 companies related to former Hitachi Chemical, Showa Denko Materials segment) -Major companies Hitachi Chemical Co., Ltd. SD Electronic Materials (Guangzhou) Co., Ltd. Showa Denko Materials (Johor) Sdn. Bhd. SD (Shanghai)
Slide 3: Summary
Summary Jan. 1 – Sept. 30, 2019 vs. Jan. 1 – Sept. 30, 2020 (Unit: Billions of Yen) Jan.-Sept. Jan.-Sept. Increase/ Full year 2019 2020 decrease forecast 2020* Net sales 695.6 636.0 -59.6 960.0 Operating income 109.3 -15.4 -124.7 -30.0 Non-operating income and expenses, net -1.7 -21.4 -19.6 -25.0 In
Slide 4: Special factors (impact on Jan.-Sept., 2020 results)
Special factors (impact on Jan.-Sept., 2020 results) (Unit: Billions of Yen) Major item Breakdown Jan.-Sept. Jul.- Sept. Negative influence of the difference between the receipts and disbursements of raw Petrochemical materials, reflecting the sharp decline in naphtha prices, time-lag factor -6.5 +2
Slide 5: Extraordinary Profit/Loss
Extraordinary Profit/Loss (Unit: Billions of Yen) Jan.-Sept. Jan.-Sept. Increase/ Jul.-Sept. 2019 2020 decrease 2020 Extraordinary Profit 2.2 2.5 0.3 0.4 Gain on sales of non-current assets 0.7 1.7 1.0 0.1 Other 1.5 0.8 -0.7 0.3 Extraordinary Loss -4.3 -12.1 -7.9 -3.7 Loss on sales and retireme
Slide 6: Quarterly forecast for amortization of goodwill and inventory step-up expenses
Quarterly forecast for amortization of goodwill, etc. and expenses for step-up of inventories belonging to the Showa Denko Materials segment (Unit: Billions of Yen) Jul. – Sept., Oct.- Dec., Second half, 2020 2020 2020 (actual) (difference) (forecast) Goodwill, depreciation on intangible fixed asse
Slide 7: Consolidated Sales and Operating Income by Segment (1)
Consolidated Sales and Operating Income by Segment (1) (Unit: Billions of Yen) Jan.-Sept. Jan.-Sept. Increase/ 2019 2020 decrease Olefins: sales decreased (market prices down, shipment volumes down) Organic chemicals: sales decreased Sales 189.6 142.5 -47.0 (vinyl acetate, ethyl acetate: shipment vo
Slide 8: Consolidated Sales and Operating Income by Segment (2)
Consolidated Sales and Operating Income by Segment (2) (Unit: Billions of Yen) Jan.-Sept. Jan.-Sept. Increase/ 2019 2020 decrease High-purity foil for capacitors: sales decreased (shipment volumes down) Sales 73.7 58.4 -15.3 Aluminum specialty components: sales decreased (shipment volumes for auto a
Slide 9: Operating Income Breakdown by Factor (Jan.-Sept. 2019 vs 2020)
Operating Income Breakdown by Factor (Jan. – Sept. 2019 vs. Jan. – Sept. 2020) Showa Denko 3rd Quarter, 2020 Consolidated Financial Results 9
Slide 10: Summary CQ2 vs CQ3, 2020
Summary CQ2 (Apr.1 – Jun.30), 2020 vs. CQ3 (Jul.1 – Sept.30), 2020 (Unit: Billions of Yen) Increase/ CQ2, 2020 CQ3, 2020 decrease Net sales 154.9 309.4 154.5 Operating income -28.3 10.4 38.6 Non-operating income and expenses, net -18.2 -3.9 14.2 Interest/Dividends income and expenses -1.0 -1.8 -0.7
Slide 11: Consolidated Sales and Operating Income by Segment (1)
Consolidated Sales and Operating Income by Segment (1) (Unit: Billions of Yen) CQ2, CQ3, Increase/ 2020 2020 decrease Olefins: sales increased (shipment volumes up, market prices up) Sales 40.7 46.8 6.1 Organic chemicals: sales decreased SunAllomer Ltd.: sales increased Petrochemicals Olefins: profi
Slide 12: Consolidated Sales and Operating Income by Segment (2)
Consolidated Sales and Operating Income by Segment (2) (Unit: Billions of Yen) CQ2, CQ3, Increase/ 2020 2020 decrease High-purity foil for capacitors: sales decreased (shipment volumes down) Sales 19.7 19.6 -0.1 Aluminum specialty components: sales increased (shipment volumes for auto application pa
Slide 13: Operating Income Breakdown by Factor
Operating Income Breakdown by Factor CQ2 (Apr.1 – Jun.30), 2020 vs. CQ3 (Jul.1 – Sept.30), 2020 Showa Denko 3rd Quarter, 2020 Consolidated Financial Results 13
Slide 14: Consolidated Balance Sheet
Consolidated Balance Sheet (Unit: Billions of Yen) Assets Dec. 31, Sep. 30, Increase/ Liabilities and net assets Dec. 31, Sep. 30, Increase/ 2019 2020 decrease 2019 2020 decrease Cash and deposits 122.1 184.8 62.8 Notes and accounts payable 117.5 145.2 27.7 Notes and accounts receivable 170.3 266.0
Slide 15: Total Assets, Interest-bearing Debt and D/E ratio
Total Assets Interest-bearing Debt and D/E ratio (Unit: Billions of Yen) Dec. 31, Jun. 30, Sept. 30, 2019 2020 2020 Total assets 1,076.4 2,106.3 2,072.0 Interest-bearing debt 303.2 1,022.3 997.7 Adjusted net D/E ratio 0.36 times 1.72 times 1.71 times Stockholders’ Equity ratio 46.4% 20.0% 20
Slide 16: Interest-bearing Debt and D/E ratio
Interest-bearing Debt and D/E ratio (Unit: Billions of Yen) D/E ratio 1,022.3 Adjusted net D/E ratio 997.7 1,000.0 2.42 800.0 1.72 1.71 1.20 1.16 600.0 0.94 0.62 0.61 400.0 368.8 359.9 346.7 288.0 303.2 0.36 200.0 2015 2016 2017 2018 2019 2020 2020 Jun. 30 Sept. 30 Equity ratio 31.5% 31.8% 34.3% 41.
Slide 17: (Reference) Summary CQ3 2019 vs CQ3 2020
(Reference) Summary CQ3 (Jul.1 – Sept.30), 2019 vs. CQ3 (Jul.1 – Sept.30), 2020 (Unit: Billions of Yen) Increase/ CQ3, 2019 CQ3, 2020 decrease Net sales 220.1 309.4 89.3 Operating income 23.8 10.4 -13.5 Non-operating income and expenses, net -1.1 -3.9 -2.9 Interest/Dividends income and expenses -0.1
Slide 18: Consolidated Sales and Operating Income by Segment (1)
Consolidated Sales and Operating Income by Segment (1) (Unit: Billions of Yen) CQ3, CQ3, Increase/ 2019 2020 decrease Olefins: sales decreased (market prices down) Sales 62.1 46.8 -15.3 Organic chemicals: sales decreased (shipment volumes of vinyl acetate down) SunAllomer Ltd.: sales decreased Petro
Slide 19: Consolidated Sales and Operating Income by Segment (2)
Consolidated Sales and Operating Income by Segment (2) (Unit: Billions of Yen) CQ3, CQ3, Increase/ 2019 2020 decrease High-purity foil for capacitors: sales decreased (shipment volumes down) Sales 24.7 19.6 -5.1 Aluminum specialty components: sales decreased (shipment volumes for auto application do
Slide 20: (Reference) Quarterly Summary 2020
(Reference) Quarterly Summary 2020 (Unit: Billions of Yen) Jan.－Sept. 2020 CQ1, 2020 CQ2, 2020 CQ3, 2020 2020 Forecast* Net sales 171.7 154.9 309.4 636.0 960.0 Operating income 2.5 -28.3 10.4 -15.4 -30.0 Net income attributable to owners of the parent 2.7 -57.3 -3.1 -57.7 -90.0 EBITDA 12.2 -18.4 36.
Slide 21: (Reference) Quarterly Operating Income
(Reference) Quarterly Operating Income 《Total》 《Petrochemicals》 (Unit: Billions of Yen) (Unit: Billions of Yen) 60.0 2020 9.0 2020 50.0 2019 2019 45.4 40.1 40.0 6.0 5.0 4.5 4.8 30.0 23.8 4.0 3.9 20.0 3.0 10.4 11.5 10.0 2.5 0.0 0.0 CQ1 CQ2 CQ3 CQ4 CQ1-0.2 CQ2 CQ3 CQ4 -10.0 -20.0 -3.0 -30.0 -3.5 -28.3
Slide 22: (Reference) Quarterly Operating Income by Segment
(Reference) Quarterly Operating Income by Segment 《Electronics》 《Chemicals》 (Unit: Billions of Yen) (Unit: Billions of Yen) 9.0 2020 9.0 2020 2019 2019 8.0 7.0 6.0 6.0 5.0 4.3 4.0 4.1 4.0 3.1 3.0 3.0 2.4 2.7 3.0 2.3 2.0 1.9 2.0 1.0 1.2 0.8 1.0 0.0 0.0 CQ1 CQ2 CQ3 CQ4 CQ1 CQ2 CQ3 CQ4 -1.0 -0.3 Showa
Slide 23: (Reference) Quarterly Operating Income by Segment
(Reference) Quarterly Operating Income by Segment 《Inorganics》 《Aluminum》 (Unit: Billions of Yen) (Unit: Billions of Yen) 50.0 2020 3.0 2020 39.5 2019 2019 40.0 2.5 32.3 30.0 2.0 20.0 13.1 1.5 10.0 4.4 0.8 1.0 0.9 0.0 CQ1 CQ2 CQ3 CQ4 -3.3 0.5 0.3 -10.0 0.3 0.2 0.0 -20.0 0.0 CQ1 CQ2 CQ3 CQ4 -23.8 -0.
Slide 24: (Reference) Quarterly Operating Income by Segment
(Reference) Quarterly Operating Income by Segment 《Showa Denko Materials》 《Others》 (Unit: Billions of Yen) (Unit: Billions of Yen) 9.0 2020 3.0 2020 2019 2.5 6.0 2.0 1.5 3.0 2.8 1.0 0.9 0.5 0.3 0.3 0.3 0.3 0.2 0.1 0.0 CQ1 CQ2 CQ3 CQ4 0.0 CQ1 CQ2 CQ3 CQ4 Showa Denko K.K. made Showa Denko Materials Co
Slide 25: Topics [General]: Hitachi Chemical changed firm name
Topics [General] ● Hitachi Chemical changed firm name Hitachi Chemical Company, Ltd., a consolidated subsidiary of SDK, changed its firm name into Showa Denko Materials Co., Ltd. (SDMC) on October 1. 2020. We chose the new firm name because SDMC started its new history as a consolidated subsidiary o
Slide 26: Topics [General]: Joined The Valuable 500
Topics [General] ● Joined “The Valuable 500” In September 2020, SDK signed a document to declare joining “The Valuable 500,” an international initiative to promote inclusion of persons with disabilities, because the Company endorsed the aim and activities of the initiative. The Valuable 500 was laun
Slide 27: Topics: Subsidiary merger and Chemicals segment
Topics [General] ● Merger between consolidated subsidiaries and change of company name SDK decided at its Board of Directors meeting held on September 24, 2020 that its consolidated subsidiary Showa Denko Carbon Holding GmbH (SDCH) will merge with its consolidated subsidiary Showa Denko Europe GmbH
Slide 28: Topics [Inorganics segment]
Topics [Inorganics segment] ● Developed highly wet-resistant, highly heat-conductive aluminum nitride filler SDK developed highly wet-resistant, highly heat-conductive aluminum nitride filler to be used as heat- radiation filler for semiconductor devices, and started to offer samples of the aluminum
Slide 29: Topics [Aluminum segment]
Topics [Aluminum segment] ● Showa Aluminum Can had a ceremony to celebrate the compilation of the third production base in Vietnam In July 2020, Showa Aluminum Can Corporation (SAC), a consolidated subsidiary of SDK, started operation of its third base in Vietnam to produce aluminum cans. This new p
Slide 30: Topics [Showa Denko Materials segment]
Topics [Showa Denko Materials segment] ● Showa Denko Materials launched mass production of 5G-compatible printed wiring board material “MCL-HS200” with low transmission loss and low warpage properties Showa Denko Materials Co., Ltd. (SDMC) launched mass production of “MCL-HS200,” an advanced functio