Abalance Corp · TSE:3856

Abalance — 2Q FY06/24 Earnings Presentation

27 slides from Abalance's earnings presentation, Mar 14, 2024

Slide 2: Contents
Contents ◆ Performance Highlights ◆ Impact of Correction of Prior Period Financial Statements ◆ Recognition of Business Environment ◆ Overview of Q2 Consolidated Financial Results ◆ Performance Forecast for FY06/24 ◆ Progress of Medium-Term Management Plan Copyright © 2024 Abalance Corporation 1
Slide 3: Financial Performance Highlights
Financial Performance Highlights 2Q FY06/24 Financial Summary ■ Net sales declined by 3.0 billion yen year on year to 108.5 billion yen ■ Due mainly to the improvement in revenue of the solar panel manufacturing business, operating profit increased by 5.1 billion yen to 10.1 billion yen Net sales 10
Slide 4: Impact of Correction of Prior Period Financial Statements
Impact of Correction of Prior Period Financial Statements Reasons Net sales and profit from buy-sell transactions for solar panels in connection with solar power plants of a domestic consolidated subsidiary (WWB Corporation) were not recorded appropriately. for Correction of financial statement figu
Slide 5: 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 6: US Market Environment
US Market Environment US Spot Price of C-Si PV Module ($/Wp) ■ Expectations of stable market growth 0.8 0.7 The solar power market has continued its strong expansion trend since 2023 0.6 Factors: Economic growth, population growth, increase in HACV demand 0.5 due to climate change 0.4 Global supply-
Slide 8: Q2 Consolidated Financial Results (Year-on-Year Comparison)
Q2 Consolidated Financial Results (Year-on-Year Comparison) ■Net sales: Net sales down due to a fall in unit prices of solar panels (3.0 billion yen decrease) ■Operating profit: Profits up due to the start of operation of the solar cell plant and cost reductions resulting from VSUN’s production effi
Slide 9: Q2 Consolidated Financial Results (By Segment)
Q2 Consolidated Financial Results (By Segment) FY06/23 FY06/24 Y/Y change (Unit: million yen) 1Q 2Q 1H 1Q 2Q 1H Net sales 55,546 56,007 111,553 57,740 50,801 108,541 (3,012) Solar Panel Manufacturing Business 53,250 54,054 107,304 55,495 48,764 104,259 (3,045) Green Energy Business 2,126 1,781 3,907
Slide 10: Quarterly Sales and Operating Profit
Quarterly Sales and Operating Profit (Unit: billion yen) 60 Net sales 40 20 0 21/2Q 3Q 4Q 22/1Q 2Q 3Q 4Q 23/1Q 2Q 3Q 4Q 24/1Q 2Q (Unit: %) 6.0 15 Operating profit / Operating profit margin 4.0 10 2.0 5 0.0 0 21/2Q 3Q 4Q 22/1Q 2Q 3Q 4Q 23/1Q 2Q 3Q 4Q 24/1Q 2Q Operating Profit Operating Profit Margin
Slide 11: Solar Panel Manufacturing Business (VSUN Group)
Solar Panel Manufacturing Business (VSUN Group) ■ Net sales: Sales to the US market were strong, but falling prices resulted in a year-on-year decrease ■ Profit: Overall optimization of the supply chain from production to sales led to a major increase year on year (Unit: billion yen) Copyright © 202
Slide 12: 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 Note: One-time revenue includes sales from the Green Energy Business's power plant sales and merchan
Slide 14: Consolidated Performance Forecast
Consolidated Performance Forecast ■ Net sales: No change in the forecast due to expectations of external sales of solar cells ■ Profit: We will monitor exchange rates and solar panel price trends to decide on the need to revise the forecast Operating Net sales 251.8 billion yen (up 36.5 billion yen
Slide 16: Quantitative Plan
Quantitative Plan ■FY06/2026 (Final Year of Medium-term Management Plan) Net sales 355.8 billion yen, operating profit 30.8 billion yen, ordinary profit 30.8 billion yen ■Major action plans (1) NASDAQ listing (2) Operation of cell plant (Vietnam) (3) Establishment of new cell plan (US), etc. FY06/23
Slide 17: Equity Ratio and Shareholder Returns
Equity Ratio and Shareholder Returns Improvement in Equity Ratio ■Equity ratio (end-2Q FY06/24): 10.6％ *Improving from 8.8% of end of FY06/2023. ■Equity ratio target: Above 10% to 12% To secure financial soundness, we aim to bolster our equity by increasing retained earnings, centering on the Solar
Slide 19: NASDAQ Listing
NASDAQ Listing ■ Growth in demand for renewable energy with the progression of global warming Recognition ■ Expansion of demand for solar panels in European and US markets (VSUN target markets) * US Inflation Reduction Act (IRA) of Business Response to climate change through CO2 emissions reductions
Slide 20: Strengthening of VSUN Supply Chain
Strengthening of VSUN Supply Chain ■ 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 (due to start operating around the summer of 2024
Slide 21: Strengthening of Global Supply Chain
Strengthening of Global Supply Chain * Latest version based on Abalance Group’s Medium-Term Management Plan (2024-2026) announced on September 22, 2023. ■ Medium- to long-term strengthening of competitiveness Switch from external purchasing to in-house production of key components of solar panels (c
Slide 22: 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-held solar power plants Stable earnings Entry into PPA business: Company ownership of solar power plants as a PPA oper
Slide 23: 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) recurring Company-owned power generation capacity: Over 140MW (including projects under d
Slide 24: Envisaged Risks to the Company’s Business
Envisaged Risks to the Company’s Business US import regulations ■ Response to circumventing exports (anti-dumping duties and countervailing duties) On August 18, 2023, the US Department of Commerce determined circumventing exports by five Chinese solar photovoltaic product manufacturers. The Departm
Slide 25: Abalance Group Summary
Abalance Group Summary Trade Name Abalance Corporation Tennozu First Tower 16F 2-2-4 Higashishinagawa, Address Shinagawa-ku, Tokyo Establishment April 17, 2000 Capital 2,059 million yen President & Yasuaki Mitsuyuki Representative Director Stock Listing Tokyo Stock Exchange (Standard Market: 3856) C
Slide 26: 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 — 2Q FY06/24 Earnings Presentation on 6ix

Abalance — 2Q FY06/24 Earnings Presentation

Slide 1: Financial Results Presentation for 2Q FY06/24

Slide 2: Contents

Slide 3: Financial Performance Highlights

Slide 4: Impact of Correction of Prior Period Financial Statements

Slide 5: Recognition of Business Environment

Slide 6: US Market Environment

Slide 7: Overview of Q2 Consolidated Financial Results

Slide 8: Q2 Consolidated Financial Results (Year-on-Year Comparison)

Slide 9: Q2 Consolidated Financial Results (By Segment)

Slide 10: Quarterly Sales and Operating Profit

Slide 11: Solar Panel Manufacturing Business (VSUN Group)

Slide 12: Green Energy Business

Slide 13: Performance Forecast for FY06/24

Slide 14: Consolidated Performance Forecast

Slide 15: Progress of Medium-Term Management Plan

Slide 16: Quantitative Plan

Slide 17: Equity Ratio and Shareholder Returns

Slide 18: Business Division Action Plans

Slide 19: NASDAQ Listing

Slide 20: Strengthening of VSUN Supply Chain

Slide 21: Strengthening of Global Supply Chain

Slide 22: Green Energy Business Priority Initiatives

Slide 23: Promotion of Green Energy Business

Slide 24: Envisaged Risks to the Company’s Business

Slide 25: Abalance Group Summary

Slide 26: Disclaimer

Slide 27: Abalance Corporation