Resonac Holdings Corporation · TSE:4004
Resonac — Showa Denko K.K. — Q3 2021 Earnings Presentation
23 slides from Resonac's earnings presentation, Nov 10, 2021
Slide 1: Consolidated Financial Results Third Quarter, 2021
Consolidated Financial Results Third Quarter, 2021 (November 10, 2021) SHOWA DENKO K.K. Motohiro Takeuchi, CFO Representative Director & Managing Corporate Officer
Slide 2: Overview of CQ3, 2021 Financial Results
Overview of CQ3, 2021 Financial Results 1. Sales and operating income (excluding the aluminum segment affected by the business transfer) in the third quarter increased by 15.9 billion yen and 0.1 billion yen from the second quarter respectively. 2. While sales of semiconductor-related products conti
Slide 3: Summary (CQ2 2021 vs. CQ3 2021)
Summary (CQ2 (Apr.-Jun.), 2021 vs. CQ3 (Jul.-Sep.), 2021) (Unit: Billions of Yen) Increase/ CQ2, 2021 CQ3, 2021 decrease Net sales 353.7 358.3 4.7 Operating income 26.8 24.4 -2.4 Non-operating income and -1.6 -1.3 0.4 expenses, net Ordinary income 25.1 23.1 -2.0 Extraordinary profit/loss -38.7 -8.0
Slide 4: Summary of Consolidated Sales and Operating Income by Segment (CQ2 vs CQ3)
Summary of Consolidated Sales and Operating Income by Segment (CQ2, 2021 vs. CQ3, 2021) (Unit: Billions of Yen) CQ2, 2021 CQ3, 2021 Increase/decrease Sales 69.5 74.4 5.0 7% Petrochemicals O.I.* 6.2 5.5 -0.7 -11% Sales 45.4 48.9 3.5 8% Chemicals O.I. 5.8 5.8 0.1 1% Sales 27.7 33.9 6.2 22% Electronics
Slide 5: Consolidated Sales and Operating Income by Segment (1)
Consolidated Sales and Operating Income by Segment (1) (CQ2, 2021 vs. CQ3, 2021) Petrochemicals (Unit: Billions of Yen) Chemicals (Unit: Billions of Yen) CQ2, CQ3, Increase/ CQ2, CQ3, Increase/ 2021 2021 decrease 2021 2021 Decrease Sales 69.5 74.4 5.0 Sales 45.4 48.9 3.5 Operating Operating Income 6
Slide 6: Consolidated Sales and Operating Income by Segment (2)
Consolidated Sales and Operating Income by Segment (2) (CQ2, 2021 vs. CQ3, 2021) Electronics (Unit: Billions of Yen) Inorganics (Unit: Billions of Yen) CQ2, CQ3, Increase/ CQ2, CQ3, Increase/ 2021 2021 decrease 2021 2021 decrease Sales 27.7 33.9 6.2 Sales 25.2 25.8 0.6 Operating Operating Income 3.8
Slide 7: Consolidated Sales and Operating Income by Segment (3)
Consolidated Sales and Operating Income by Segment (3) (CQ2, 2021 vs. CQ3, 2021) Aluminum Showa Denko Materials (Unit: Billions of Yen) (Unit: Billions of Yen) CQ2, CQ3, Increase/ CQ2, CQ3, Increase/ 2021 2021 decrease 2021 2021 decrease Sales 25.2 13.9 -11.3 Sales 160.6 161.4 0.8 Operating Operatin
Slide 8: Non-operating income/expenses, Extraordinary profit/loss
Non-operating income/expenses, Extraordinary profit/loss Non-operating income/expenses (Unit: Billions of Yen) Jan.-Sep. Jan.-Sep. Increase/ Main factors 2020 2021 decrease Interest/Dividends income and expenses -2.7 -6.2 -3.5 Interest expenses increased Equity method newly applied to Equity in earn
Slide 9: Consolidated Balance Sheet
Consolidated Balance Sheet Consolidated Balance Sheet (Unit: Billions of Yen) Dec. 31, Sep. 30, Increase/ Dec. 31, Sep. 30, Increase/ Assets Liabilities and net assets 2020 2021 decrease 2020 2021 decrease Cash and deposits 199.0 247.3 48.3 Notes and accounts payable 164.4 182.4 18.0 Notes and accou
Slide 10: Summary (Jan.-Sep., 2020 vs. Jan.-Sep., 2021)
(Reference) Summary (Jan.-Sep., 2020 vs. Jan.-Sep., 2021) (Unit: Billions of Yen) Jan.-Sep. Jan.-Sep. Increase/ 2021 2020*1 2021 decrease Forecast*2 Net sales 636.0 1,051.7 415.7 1,400.0 Operating income -27.4 71.9 99.3 85.0 Non-operating income and -21.9 1.4 23.3 -3.0 expenses, net*3 Ordinary incom
Slide 11: Operating Income Breakdown by Factor
(Reference) Operating Income Breakdown by Factor (Jan.-Sep., 2020 vs. Jan.-Sep., 2021) (Unit: Billions of Yen) 71.9 -6.1 13.5 factors related to naphtha devaluation of Subsidiary Showa inventory in Denko Materials accordance with Co., Ltd the “lower of cost or market” accounting method 11
Slide 12: Summary of Consolidated Sales and Operating Income by Segment (Jan.-Sep.)
(Reference) Summary of Consolidated Sales and Operating Income by Segment (Jan.-Sep., 2020 vs. Jan.-Sep., 2021) (Unit: Billions of Yen) Jan.-Sep. Jan.-Sep. Increase/ 2021 2020 2021 decrease Forecast*1 Sales 142.5 201.7 59.1 42% 265.0 Petrochemicals O.I.*2 1.3 17.2 15.9 1,238% 17.0 Sales 113.0 135.6
Slide 13: Consolidated Sales and Operating Income by Segment (1) (Jan.-Sep.)
(Reference) Consolidated Sales and Operating Income by Segment (1) (Jan.-Sep., 2020 vs. Jan.-Sep., 2021) Petrochemicals (Unit: Billions of Yen) Chemicals (Unit: Billions of Yen) Jan.-Sep. Jan.-Sep. Increase/ Jan.-Sep. Jan.-Sep. Increase/ 2020 2021 Decrease 2020 2021 Decrease Sales 142.5 201.7 59.1 S
Slide 14: Consolidated Sales and Operating Income by Segment (2) (Jan.-Sep.)
(Reference) Consolidated Sales and Operating Income by Segment (2) (Jan.-Sep., 2020 vs. Jan.-Sep., 2021) Electronics Inorganics (Unit: Billions of Yen) (Unit: Billions of Yen) Jan.-Sep. Jan.-Sep. Increase/ Jan.-Sep. Jan.-Sep. Increase/ 2020 2021 decrease 2020 2021 decrease Sales 68.7 83.3 14.5 Sales
Slide 15: Consolidated Sales and Operating Income by Segment (3) (Jan.-Sep.)
(Reference) Consolidated Sales and Operating Income by Segment (3) (Jan.-Sep., 2020 vs. Jan.-Sep., 2021) Aluminum Showa Denko Materials (Unit: Billions of Yen) (Unit: Billions of Yen) Jan.-Sep. Jan.-Sep. Increase/ Jan.-Sep. Jan.-Sep. Increase/ 2020 2021 decrease 2020*1 2021 decrease Sales 58.4 61.7
Slide 16: Consolidated Companies, Selected Data
(Reference) Consolidated Companies, Selected Data Consolidated Companies Consolidated subsidiaries: 144 (-7 from Dec. 31, 2020) -11: Related to transfer of SHOKO, and aluminum rolled products and aluminum can businesses (-8) Liquidation of affiliated companies engaged in energy storage devices and s
Slide 17: Capital expenditures/ Depreciation by Segment
(Reference) Capital expenditures/ Depreciation by Segment (Unit: Billions of Yen) Capital expenditures Depreciation Jan.-Sep. Jan.-Sep. Increase/ Jan.-Sep. Jan.-Sep. Increase/ 2020 2021 decrease 2020 2021 decrease Petro- 3.7 1.6 -2.1 3.1 3.1 -0.0 chemicals Chemicals 9.1 8.0 -1.1 7.1 7.4 0.3 Electron
Slide 18: Costs of the integration with Showa Denko Materials Co., Ltd.
(Reference) Costs of the integration with Showa Denko Materials Co., Ltd. (Unit: Billions of Yen) 2021 Item Full Year Jan.-Sep. Jul.-Sep. Forecast*2 Post-merger integration (PMI) expenses*1 (Operating expenses) -5.0 -1.9 -9.2 Interest on borrowing (Non-operating related to share acquisition, expense
Slide 19: Amortization of Goodwill and Intangible Fixed Assets Resulting from PPA
(Reference) Amortization of Goodwill and Intangible Fixed Assets Resulting from PPA*1 at Showa Denko Materials Co., Ltd. (Unit: Billions of Yen) 2021 2021 2022 Amortization Amortization amount Forecast*2 Revised forecast*2 amount Initial 1H 2H Full Year Full Year forecast Intangible Fixed Assets 16.
Slide 20: Regarding Corporate bond issuance plan
(Reference) Regarding Corporate bond issuance plan １．Purpose of this transaction：Partial repayment of non-recourse loans procured at the time of the tender offer for shares in former Hitachi Chemical Company Since the purpose of the non-recourse loan, which is to control financial risk until the int
Slide 21: Regarding Issuance of New Shares and Secondary Offering of Shares
(Reference) Regarding Issuance of New Shares and Secondary Offering of Shares 1. Purpose of this transaction Capital raising to support and accelerate our strategic investments mainly in the following 3 areas: “Electronics,” “Mobility,” and “Life Science” 2. Financial impact of this transaction ・Net
Slide 22: Topics
Topics Segment Topics Showa Denko Group Challenges to Realize Carbon Neutrality by 2050 General Issuance of new shares and secondary offering of shares Concluded long-term contract to supply SiC epitaxial wafers for power Electronics semiconductors Aluminum Installed additional lines to produce alum
Slide 23: Note
Note Performance forecast and other statements pertaining to the future as contained in this presentation are based on the information available as of today and assumptions as of today regarding risk factors that could affect our future performance. Actual results may differ materially from the fore