Slide 1: Results Presentation of FY2020
Results Presentation of FY2020 （Fiscal year ended March 2021） Securities code：4061 Denka Co. ,Ltd May 12, 2021
Slide 2: Contents
Contents 1 FY2020 Results a) Key Points of FY2020 Results 03 b) Definition of Specialty Businesses 04 c) Summary （ Year-on-Year Comparison ） 05 d) Change Factors（ Year-on-Year Comparison ） 06 e) Operating Income Change Factors（ Year-on-Year Comparison ） 07 f) By Segment （ Year-on-Year Comparison ） 0
Slide 3: FY2020 Financial Summary
FY2020 Financial Summary （ Fiscal year ended March 2021） 2
Slide 4: Key Points of FY2020 Results
FY 2020 Results a) Key Points of FY2020 Results FY2017 Actual FY2018 Actual FY2019 Actual FY2020 Actual 33.7 B 34.2 B 31.6 B 34.7 B Operating Operating Operating Operating Income Income Income Income Operating Margin 8.5 % Operating Margin 8.3 % Operating Margin 8.3 % Operating Margin 9.8 % Specialt
Slide 5: Definition of Specialty Businesses
FY2020 Results b) Definition of Specialty Businesses Definition of a A business that meets or has the potential to meet the following conditions in the Specialty Business： near future: 1) being consistent with the Company’s commitment to addressing ESG issues; 2) boasting distinctive strengths and p
Slide 6: Summary (Year-on-Year Comparison)
FY 2020 Results c) Summary（ Year-on-Year Comparison ） FY2019 FY2020 Incr. Main factors (¥ billions） Actual Actual Decr. of Incr.Decr Sales 380.8 354.4 - 26.4 Elastomer & Performance Plastics - 6.5 Infrastructure & Social Solutions - 0.8 Electronics & Innovative Products + 1.6 Operating Income 31.6 3
Slide 7: Change Factors (Year-on-Year Comparison)
FY 2020 Results ｄ）Change Factors（ Year-on-Year Comparison ） YoY (¥ billions) Sales 354.4 billion - 26.4 1. Volume : Difference due to the impact of COVID-19 -37.5 Others（Rapid Antigen Test COVID-19, xEV-related, semiconductor-related, etc.) +33.5 - 4.0 2. Pricing ：Difference due to styrene-based pro
Slide 8: Operating Income Change Factors (Year-on-Year Comparison)
FY 2020 Results e) Operating Income Change Factors( Year-on-Year Comparison ) (¥ billions) + 21.0 + 3.1 + 0.3 34.7 31.6 - 6.0 - 0.8 - 14.5 Other Rapid Antigen administrative Test COVID-19, expenses xEV-related Sales prices -19.3 Sales prices -3.1 and Impact of Semiconductor- Materials Materials manu
Slide 9: By Segment (Year-on-Year Comparison)
FY 2020 Results ｆ） By Segment( Year-on-Year Comparison ) Sales FY2019 FY2020 Incr. (¥ billions) Decr. Pricing Volume Elastomer &Performance Plastics 149.3 124.3 - 25.0 - 19.0 - 6.0 Infrastructure & Social Solutions 54.8 50.5 - 4.3 + 0.4 - 4.6 Electronics & Innovative Products 68.0 71.2 + 3.2 - 2.1 +
Slide 10: By Segment (Versus November Earnings Forecast)
FY2020 Results ｇ）by Segment ( Versus November Earnings Forecast ) Sales FY2020 FY2020 Incr. (¥ billions) Forecast Actual Decr. Pricing Volume Elastomer & Performance Plastics 115.0 124.3 + 9.3 + 4.2 + 5.1 Infrastructure & Social Solutions 52.0 50.5 - 1.5 - 0.0 - 1.4 Electronics & Innovative Products
Slide 11: FY2021 Earnings Forecast
FY2021 Earnings Forecast (Fiscal year ending March 2022) 10
Slide 12: Summary (Year-on-Year Comparison)
FY2021 Earnings Forecast a) Summary ( Year-on-Year Comparison ) FY2020 FY2021 Incr. Actual Forecast FY2021 FY2021 Decr (¥ billion) （Apr.-Sep.) （Oct.-Mar.) Sales 354.4 365.0 ＋ 10.6 175.0 190.0 Operating Income 34.7 42.0 ＋ 7.3 19.0 23.0 Operating Margin 9.8% 11.5% ＋ 1.7% 1.09% 12.1% Ordinary Income 32
Slide 13: Change Factors: Year-on-Year Comparison
FY2021 Earnings Forecast b)Change Factors: Year-on-Year Comparison YoY (¥ billions) Sales 365.0 billion + 10.6 1. Volume : Recovery of demand from COVID-19 impact + 14.2 Other (xEV-related, semiconductor-related demand growth, etc.) 2. Pricing : Difference due to styrene-based product price revision
Slide 14: Operating Income Change Factors (Year-on-Year Comparison)
FY2021 Earnings Forecast c) Operating Income Change Factors( Year-on-Year Comparison ) (¥ billions) + 1.7 +0.6 + 11.0 + 2.5 42.0 34.7 △ 7.1 △ 1.4 Other xEV-related, administrative Recovery of semiconduct expenses demand from or-related Sales prices＋22.0 Sales prices +0.8 and COVID-19 demand Material
Slide 15: Business Segment Changes (From April 2021)
FY2021 Earnings Forecast d) Business Segment Changes (From April 2021) Consolidation into four business division structure results in changes in reported segments Business Categories Carbide chain (Old) (New) Limestone Electronics & Innovative Electronics & Innovative Products Calcium Oxide Integrat
Slide 16: By Segment (Year-on-Year Comparison)
FY2021 Earnings Forecast e) By Segment( Year-on-Year Comparison ) Sales FY2020 FY2021 Incr. (¥ billions) Actual Forecast Decr. Pricing Volume Other* Electronics & Innovative Products 77.7 85.0 + 7.3 + 2.5 + 4.8 - Life Innovation 42.9 40.0 - 2.9 - 3.4 + 0.4 - Elastomer & Infrastructure Solutions 91.9
Slide 17: Comments on Earnings Forecast
FY2021 Earnings Forecast f) Comments on Earnings Forecast Segments Elements of Earnings Forecast: Year-on-Year Change • Accelerated growth of demand for xEV-related products (spherical alumina, acetylene black) Electronics & • Increased demand for semiconductor and 5G communications-related products
Slide 18: Key Performance Indicators
FY2021 Earnings Forecast g) Key Performance Indicators （¥ billions） FY2020 Apr-Sep Oct-Mar FY2021 Apr-Sep Oct-Mar Actual Actual Actual Planned Planned Planned Investment 42.3 17.1 25.3 43.0 22.0 21.0 Depreciation 22.9 11.5 11.4 23.5 11.5 12.0 R&D 14.7 7.4 7.3 16.0 8.0 8.0 Interest- 137.0 138.0 137.0
Slide 19: Shareholder Returns
FY2021 Earnings Forecast h) Shareholder Returns FY2017 FY2018 FY2019 FY2020 FY2021 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 Shareholders R
Slide 20: Reference Material
Den ka Possibility of chemistry Reference Material it Denka Co, Lid. All Rights Reserved. | 19
Slide 21: Relationship Between Specialty Businesses and New Segments
Relationship Between Specialty Businesses and New Segments Specialty New Segments Business Activities Business Topics The Environment Electronics & Innovative 【Semiconductor-related】 and Energy Products Carrier Tape (Cover Tape/Bottom Sheet), Dicing Tape, Fused Silica 【xEV-related】 Spherical Alumina
Slide 22: 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 23: Denka Co., Ltd.
Inquiries regarding this material Corporate Communications Dept, Denka Co., Ltd. TEL 03-5290-5511 ＵＲＬ https://www.denka.co.jp