Denka Co., Ltd. · TSE:4061
Denka — Q1 FY2021 Earnings Presentation
24 slides from Denka's earnings presentation, Aug 6, 2021
Slide 1: Results Presentation of FY2021 1Q
Results Presentation of FY2021 1Q (the 1st 3months of the Fiscal year ending March 2022) Securities code：4061 Denka Co. ,Ltd August 6, 2021
Slide 2: Contents
Contents 1 FY2021 1Q Results a) Summary （Year-on-Year） 03 b) Change Factors （ “ ） 04 c) Graph of Operating Income Change Factors （ “ ） 05 d) By Segment （ “ ） 06 e) Change Factors By Segment （ “ ） 07-08 2 FY2021 Earnings Forecast a) Summary （vs Forecast at the beginning, Year-on-Year） 10 b) 1H：Change
Slide 3: FY2021 1Q Results
Denka Possibility of chemistry FY2021 1Q Results
Slide 4: 1Q Results: Summary (Year-on-Year)
FY2021 1Q Results a) Summary（Year-on-Year） FY2020 FY2021 Incr. Main factors 1Q Actual 1Q Actual (¥ billions） Decr. of Incr.Decr Sales 76.2 86.7 + 10.5 (Detailed below) Operating Income 4.4 7.7 + 3.3 (Detailed below) Operating Margin 5.8% 8.9% + 3.2% Interest rates, - 0.8 Ordinary Income 5.0 7.5 + 2.
Slide 5: 1Q Results: Change Factors (Year-on-Year)
FY2021 1Q Results b) Change Factors （Year-on-Year） YoY (¥ billions) Sales 86.7 billion + 10.5 1. Volume ：Recovery of demand from COVID-19 impact Other (xEV-related, semiconductor-related demand growth, etc.) + 13.0 2. Pricing ：Styrene-based products sales price revision due to raw material price inc
Slide 6: Graph of Operating Income Change Factors (Year-on-Year)
FY2021 1Q Results c) Graph of Operating Income Change Factors（Year-on-Year） (¥ billions) + 5.7 + 6.3 7.7 + 0.0 - 8.0 - 0.7 4.4 Recovery of demand Styrene-based from COVID-19 impact products sales price xEV-related, revision due to raw Other administrative material price raw material expenses and R＆D
Slide 7: 1Q Results: By Segment (Year-on-Year)
FY2021 1Q Results d) By Segment （Year-on-Year） Sales FY2020 FY2021 Incr. (¥ billions) 1Q Actual 1Q Actual Decr. Pricing Volume Other* Electronics & Innovative Products 17.1 21.0 + 3.9 + 0.4 + 4.9 - 1.3 Life Innovation 5.3 6.0 + 0.7 - 0.2 + 0.9 - 0.0 Elastomer & Infrastructure Solutions 19.8 24.6 + 4
Slide 8: Change Factors By Segment: Electronics and Life Innovation
FY2021 1Q Results e) Change Factors By Segment（Year-on-Year） Electronics & Innovative Products Operating income main change factors FY2020 FY2021 Incr. 1Q Actual 1Q Actual Decr. Spherical : xEV-related applications and 5G communications-related (¥ billions) Alumina demand growth Increased shipments
Slide 9: Change Factors By Segment: Elastomer and Polymer Solutions
FY2021 1Q Results e) Change Factors By Segment（Year-on-Year） Elastomer & Infrastructure Solutions Operating income main change factors FY2020 FY2021 Incr. (¥ billions) 1Q Actual 1Q Actual Decr. Chloroprene : Sales volumes increased due to recovery of demand from Rubber the impact of COVID-19. Howeve
Slide 10: FY2021 Earnings Forecast
Denka Possibility of chemistry FY2021 Earnings Forecast
Slide 11: Earnings Forecast Summary (vs beginning, Year-on-Year)
FY2021 Earnings Forecast a) Summary（vs Forecast at the beginning, Year-on-Year） FY2021 1Ｈ FY2021 Full year Initial Revised FY2020 Initial Revised FY2020 Year- Forecast Forecast Vs. initial 1ＨActual Forecast Forecast Vs. initial Actual Year- (¥ billions） Forecast on-year Forecast on-year Sales 175.0
Slide 12: 1H: Change Factors (vs beginning)
FY2021 Earnings Forecast b) 1H：Change Factors（vs Forecast at the beginning） Vs. forecast (¥ billions) Sales 185.0 billion +10.0 1. Volume: Positive factors (Upwards trend in semiconductor-related products and chloroprene rubber) ＋ 0.5 Negative factors (Anticipating downward trend in influenza vaccin
Slide 13: 1H: Graph of Operating Income Change Factors
FY2021 Earnings Forecast c) 1H：Graph of Operating Income Change Factor (vs Forecast at the beginning） (¥ billions) + 9.5 22.0 + 0.2 + 0.0 19.0 - 6.3 - 0.4 Positive (semiconductor- related, chloroprene Other Upward revision of the administrative rubber, other) estimated sale price of Negative (influe
Slide 14: 1H: By Segment (vs beginning)
FY2021 Earnings Forecast d) 1H：By Segment （vs Forecast at the beginning） FY2021 1H Sales FY2021 1H Revised Incr. (¥ billions) Initial Forecast Forecast Decr. Pricing Volume Electronics & Innovative Products 42.0 43.0 + 1.0 + 0.1 + 0.9 Life Innovation 18.0 24.0 + 6.0 + 5.8 + 0.2 Elastomer & Infrastru
Slide 15: 1H: Electronics & Innovative Products
FY2021 Earnings Forecast e) 1H：Electronics & Innovative Products (vs Forecast at the beginning） FY2021 1H FY2021 1H FY2020 Initial Revised Incr. Cost& 1Ｈ (¥ billions) Forecast Forecast Decr. Pricing Volume Others Actual Sales 42.0 43.0 + 1.0 + 0.1 + 0.9 36.7 Operating Income 8.0 8.0 ± 0.0 + 0.1 + 0.
Slide 16: 1H: Life Innovation
FY2021 Earnings Forecast e) 1H：Life Innovation (vs Forecast at the beginning） FY2021 1H FY2021 1H FY2020 Initial Revised Incr. Cost& 1Ｈ (¥ billions) Forecast Forecast Decr. Pricing Volume Others Actual Sales 18.0 24.0 + 6.0 ＋ 5.8 + 0.2 16.2 Operating Income 5.0 8.5 + 3.5 ＋ 5.8 - 1.7 - 0.6 2.4 Main C
Slide 17: 1H: Elastomer & Infrastructure Solutions
FY2021 Earnings Forecast e) 1H：Elastomer & Infrastructure Solutions (vs Forecast at the beginning） FY2021 1H FY2021 1H FY2020 Initial Revised Incr. Cost& 1Ｈ (¥ billions) Forecast Forecast Decr. Pricing Volume Others Actual Sales 50.0 51.0 + 1.0 + 0.8 + 0.2 41.8 Operating Income 1.0 0.5 - 0.5 + 0.8 +
Slide 18: 1H: Polymer Solutions
FY2021 Earnings Forecast e) 1H：Polymer Solutions (vs Forecast at the beginning） FY2021 1H FY2021 1H FY2020 Initial Revised Incr. Cost& 1Ｈ (¥ billions) Forecast Forecast Decr. Pricing Volume Others Actual Sales 60.0 62.0 + 2.0 + 2.8 - 0.8 50.4 Operating Income 4.5 4.5 ± 0.0 + 2.8 - 0.3 - 2.5 2.9 Main
Slide 19: Full year: By Segment (vs beginning)
FY2021 Earnings Forecast f) Full year：By Segment （ vs Forecast at the beginning ） FY2021 1H FY2021 Full year FY2021 1H FY2021 1H FY2021 FY2021 Sales Initial Revised Incr. Initial Revised Incr. (¥ billions) Forecast Forecast Decr. Forecast Forecast Decr. Electronics & Innovative Products 42.0 43.0 +
Slide 20: Key Performance Indicators
FY2021 Earnings Forecast g) Key Performance Indicators FY2021 1H FY2021 Full-Year FY2020 1Q Actual FY2021 1Q Actual Revised Forecast Initial Forecast (¥ billions) (Apr-Jun) (Apr-Jun) (Apr-Sep) (Apr-Mar) Investment 71 76 220 430 Depreciation 57 57 115 235 R&D 38 38 80 160 Interest-Bearing Debt 1,422
Slide 21: Shareholder Returns
FY2021 Earnings Forecast h) Shareholder Returns FY2021 FY2017 FY2018 FY2019 FY2020 Initial Actual Actual Actual Actual Forecast Net Income (billion) 23.0 25.0 22.7 22.8 29.0 Dividend per share* （¥） 105.0 120.0 125.0 125.0 135.0 Mid-term 65.0 End 70.0 (billion) Dividend 9.2 10.5 10.8 10.8 11.6 Shareh
Slide 22: FY2022 Numerical Targets of Denka Value-Up
FY2022 Management Plan i) FY2022 Numerical Targets of Denka Value-Up Operating FY2021 FY2022 FY2020 Year-on- Income Actual Initial Management year (¥ billions) Forecast Plan Main measures Spherical alumina: Electronics & Increasing xEV and 5G communications-related demand, effect of expansion in Sin
Slide 23: 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 24: Denka Co., Ltd.
Inquiries regarding this material Corporate Communications Dept, Denka Co., Ltd. TEL 03-5290-5511 ＵＲＬ https://www.denka.co.jp/eng/