Abalance Corp · TSE:3856

Abalance — FY06/24 Earnings Presentation

34 slides from Abalance's earnings presentation, Aug 14, 2024

Slide 2: Contents
Contents １．Overview of FY06/24 Consolidated Financial Results ２．Recognition of Business Environment ３．Performance Forecast for FY06/25 ４．Withdrawal of Numerical Targets of the Medium-Term Management Plan (2024-2026) ５．Business Division Action Plans ６．Appendix Copyright © 2024 Abalance Corporation 1
Slide 4: FY06/24 Consolidated Financial Results (Year-on-Year Comparison)
FY06/24 Consolidated Financial Results (Year-on-Year Comparison) ■Net sales: Net sales down mainly due to a fall in unit prices of solar panels (6.3 billion yen decrease) ■Operating profit: Profits up due to the start of a new solar cell plant and more efficient production of VSUN resulting in lower
Slide 5: FY06/24 Consolidated Financial Results (By Segment)
FY06/24 Consolidated Financial Results (By Segment) FY06/23 FY06/24 YoY change (Unit: billion yen) 1H 2H Full Year 1H 2H Full Year Net sales 111.6 103.7 215.3 108.5 100.4 209.0 (6.3) Solar Panel Manufacturing Business 107.3 99.3 206.6 104.3 95.6 199.9 (6.7) Green Energy Business 3.9 4.1 8.0 3.9 4.4
Slide 6: Quarterly Sales and Operating Profit
Quarterly Sales and Operating Profit (Unit: billion yen) 60 600 Net sales 40 400 200 20 0 22/1Q 2Q 3Q 4Q 23/1Q 2Q 3Q 4Q 24/1Q 2Q 3Q 4Q In-house manufacturing of solar cells progressed, with the operating profit margin on an improving trend. 100 10 17.6% 20% Operating profit / Operating profit margin
Slide 7: Solar Panel Manufacturing Business (Panels / Cells)
Solar Panel Manufacturing Business (Panels / Cells) ■Net sales: Sales decreased due to a decline in sales prices caused by the softening of global supply and demand for solar panels and cells ■Profit: Overall optimization of the supply chain from production to sales led to a major increase year on y
Slide 8: Green Energy Business
Green Energy Business ■Steady development of the recurring revenue business model of solar power plant ownership, which is a priority business. ■Actively pursuing non-FIT projects as a PPA operator FY06/23 FY06/24 YoY (％) Full Full (Unit: billion yen） 1Q 2Q IH 3Q 4Q 2H 1Q 2Q 1H 3Q 4Q 2H Year Year Ne
Slide 9: Equity Ratio
Equity Ratio ■Equity ratio (FY06/24): 15.8% *The rate has shown signs of improvement since 6.9% in FY06/22. ■We will continue to ensure financial soundness by increasing our equity capital through the accumulation of retained earnings mainly from the Solar Panel Manufacturing Business and the Green
Slide 10: Shareholder Returns (Dividends)
Shareholder Returns (Dividends) ■Policy: We will provide stable and continuous dividends while expanding and effectively utilizing retained earnings, thus improving corporate competitiveness and shareholder value. ■FY06/25: Annual dividends have not yet been determined, but we will make appropriate
Slide 12: Recognition of Business Environment
Recognition of Business Environment 2030 Group Vision Global Solar Module Production Capacity A global core renewable energy company Production concentrated on top 5 countries China: 80% (500GW) Group 2: 13% The renewable energy market is expected to grow (Vietnam, India, Malaysia, Thailand) over th
Slide 13: Changes in Environment Surrounding Solar Products
Changes in Environment Surrounding Solar Products The following three main changes in the environment have been affecting the business management of the Group. The end of US import tariff exemption for solar panel products from four Southeast Asian countries (June 2024) ↓ The US government is consid
Slide 15: FY06/25 Consolidated Financial Result Forecasts
FY06/25 Consolidated Financial Result Forecasts ■Net sales: Sales to the US will decrease due to a decline in sales prices in the solar power market and US import tariff policies Sales of solar panel products will be strengthened in Europe and Asia, including India Domestic sales for FY06/25 are exp
Slide 16: Assumptions for FY06/25 Financial Result Forecasts
Assumptions for FY06/25 Financial Result Forecasts The softening of supply and demand for solar products brings down prices and plant operating rates, Changes in the resulting in a deterioration in profitability. solar power The end of US import tariff exemption for products from four Southeast Asia
Slide 17: Withdrawal of Numerical Targets of the Medium-Term Management Plan
4． Withdrawal of Numerical Targets of the Medium-Term Management Plan (2024-2026) Model: VSUN270-60P (Mersin, Turkey) Copyright © 2024 Abalance Corporation 16
Slide 18: Withdrawal of Numerical Targets of the Medium-Term Management Plan (2024-2026)
Withdrawal of Numerical Targets of the Medium-Term Management Plan (2024-2026) Withdrawal of As stated in the “Notice concerning Withdrawal of Numerical Targets of the Medium-Term Medium-Term Management Plan (2024-2026)” announced on August 14, 2024, we have withdrawn the Management Plan Medium-Term
Slide 20: Growth Strategy Pipeline for Solar Panel Manufacturing Business
Growth Strategy Pipeline for Solar Panel Manufacturing Business  Strengthen the global supply chain by establishing integrated production systems  Strengthen the business development and foundation in the United States, where market growth Strategy is expected Directions  The specific production
Slide 21: Listing of subsidiary TOYO Co., Ltd. on NASDAQ
Listing of subsidiary TOYO Co., Ltd. on NASDAQ ■Growth in demand for renewable energy with the progression of global warming ■Increasing demand for solar panels and cells in the European and US markets Recognition of *The US Inflation Reduction Act (IRA) has stimulated domestic production (domestic
Slide 22: Strengthening of Supply Chain in Vietnam
Strengthening of Supply Chain in Vietnam ■ Strengthen competitiveness by building a global supply chain ■ Switch from external purchasing to in-house production of cells, the key component of solar panels ■ Build a manufacturing plant for ingots and wafers (Start of operations in April 2024) Strateg
Slide 23: Strengthening of Global Supply Chain
Strengthening of Global Supply Chain ■Medium- to long-term strengthening of competitiveness Switch from external purchasing to in-house production of key components of solar panels (cells, wafers, ingots) Aim to improve profitability by stabilizing parts procurement and reducing costs through in-hou
Slide 24: Gradual Expansion of Domestic Solar Power Market in Medium to Long Term
Gradual Expansion of Domestic Solar Power Market in Medium to Long Term ■The market as a whole will expand gradually until 2030 Recognition of ■Due to government policy, the number of FIT (Feed-in Tariff) projects in Japan has gradually decreased Environment since 2021. ■Non-FIT PPA and self-consump
Slide 25: Green Energy Business Priority Initiatives
Green Energy Business Priority Initiatives Promote one-stop solutions mainly by subsidiaries, WWB Corporation and VALORS Corporation Promotion of recurring revenue business: company ownership of solar power plants Stable earnings Promotion of company ownership of solar power plants as a PPA operator
Slide 26: Promotion of Green Energy Business
Promotion of Green Energy Business ■ Expansion of recurring revenue business through company ownership of solar power plants Promotion of Company-held power plants: Approx. 110 power plants (Japan and overseas) Company-owned power generation capacity: Over 140MW (including projects recurring under d
Slide 28: Market Environment in the US
Market Environment in the US ■A market where stable growth is expected with a shift in progress to domestic production The solar power market will maintain a steady expansion trend in the medium to long term (Factor) Increasing demand for heating and cooling due to economic growth, population growth
Slide 29: Imports of Vietnamese Products Face Tougher Conditions as US Import Tariffs Tighten
Imports of Vietnamese Products Face Tougher Conditions as US Import Tariffs Tighten The United States moves to strengthen import tariffs on solar products (announced in April and May 2024) Company NO. Policy Type Target product Target country Tariff level Remarks target Cambodia To be decided AD/CVD
Slide 30: Europe: Germany Drives Growth of Solar Power Market
Europe: Germany Drives Growth of Solar Power Market Top 10 EU27 countries with the most solar In Europe, there is a move away from fossil power installed (2024-2027) fuels, and the solar power market is Recognition of expected to continue to grow in the medium No.1: Germany, No.2: Spain, No.3: Italy
Slide 31: India: Demand for Solar Cell Imports from Overseas Expected to Continue
India: Demand for Solar Cell Imports from Overseas Expected to Continue The average annual growth of the Indian solar power market in 2024-2029 is expected to be 19.8% Recognition of There will be a shift to domestic production, and domestic demand for panels will be met in 2026, Environment but imp
Slide 32: Abalance Group Summary
Abalance Group Summary Trade Name Abalance Corporation Tennozu First Tower 16F 2-2-4 Higashishinagawa, Shinagawa-ku, Address Tokyo Establishment April 17, 2000 Capital 2,518 million yen President & Representative Yasuaki Mitsuyuki Director Stock Listing Tokyo Stock Exchange (Standard Market: 3856) C
Slide 33: Disclaimer
Disclaimer  The future outlook and estimated figures presented in this material are based on information available to our company at the time of its creation, as well as facts we recognized and results from our subsequent analyses, evaluations and calculations.  While we have considered past confi

Abalance — FY06/24 Earnings Presentation on 6ix

Abalance — FY06/24 Earnings Presentation

Slide 1: Financial Results Presentation for FY06/24

Slide 2: Contents

Slide 3: Overview of FY06/24 Consolidated Financial Results

Slide 4: FY06/24 Consolidated Financial Results (Year-on-Year Comparison)

Slide 5: FY06/24 Consolidated Financial Results (By Segment)

Slide 6: Quarterly Sales and Operating Profit

Slide 7: Solar Panel Manufacturing Business (Panels / Cells)

Slide 8: Green Energy Business

Slide 9: Equity Ratio

Slide 10: Shareholder Returns (Dividends)

Slide 11: Recognition of Business Environment

Slide 12: Recognition of Business Environment

Slide 13: Changes in Environment Surrounding Solar Products

Slide 14: Performance Forecast for FY06/25

Slide 15: FY06/25 Consolidated Financial Result Forecasts

Slide 16: Assumptions for FY06/25 Financial Result Forecasts

Slide 17: Withdrawal of Numerical Targets of the Medium-Term Management Plan

Slide 18: Withdrawal of Numerical Targets of the Medium-Term Management Plan (2024-2026)

Slide 19: Business Division Action Plans

Slide 20: Growth Strategy Pipeline for Solar Panel Manufacturing Business

Slide 21: Listing of subsidiary TOYO Co., Ltd. on NASDAQ

Slide 22: Strengthening of Supply Chain in Vietnam

Slide 23: Strengthening of Global Supply Chain

Slide 24: Gradual Expansion of Domestic Solar Power Market in Medium to Long Term

Slide 25: Green Energy Business Priority Initiatives

Slide 26: Promotion of Green Energy Business

Slide 27: Appendix

Slide 28: Market Environment in the US

Slide 29: Imports of Vietnamese Products Face Tougher Conditions as US Import Tariffs Tighten

Slide 30: Europe: Germany Drives Growth of Solar Power Market

Slide 31: India: Demand for Solar Cell Imports from Overseas Expected to Continue

Slide 32: Abalance Group Summary

Slide 33: Disclaimer

Slide 34: Abalance Corporation