Resonac Holdings Corporation · TSE:4004
Resonac — Showa Denko K.K. — Q1 2021 Earnings Presentation
22 slides from Resonac's earnings presentation, May 13, 2021
Slide 1: Consolidated Financial Results First Quarter, 2021
Consolidated Financial Results First Quarter, 2021 (May 13, 2021) SHOWA DENKO K.K. Motohiro Takeuchi, CFO Representative Director & Managing Corporate Officer
Slide 2: Overview of CQ1, 2021 Financial Results
Overview of CQ1, 2021 Financial Results Net Sales, Operating Income Net Sales：¥339.7 bn (vs. CQ4, 2020 up ¥2.0 bn, vs. CQ1, 2020 up ¥167.9 bn) Sales of petrochemicals increased due to a rise in market prices, and sales figures of Showa Denko Materials increased due to strong demand for semiconductor
Slide 3: Consolidated Companies, Selected Data
Consolidated Companies, Selected Data Consolidated Companies Consolidated subsidiaries: 151 (±0 from Dec. 31, 2020) Equity method applied: 14 (+1 from Dec. 31, 2020) +1: Change in classification of an affiliate to be an equity-method affiliate Selected Data (Average) Jan.- Mar. Oct.- Dec. Jan.- Mar.
Slide 4: Summary (CQ4 2020 vs. CQ1 2021)
Summary (CQ4 (Oct.-Dec.), 2020 vs. CQ1 (Jan.-Mar.), 2021) (Unit: Billions of Yen) Increase/ CQ4, 2020 CQ1, 2021 decrease Net sales 337.7 339.7 2.0 Operating income -4.0 20.8 24.9 Non-operating income and -3.2 4.3 7.4 expenses, net Ordinary income -7.2 25.1 32.3 Extraordinary profit/loss -14.6 -11.7
Slide 5: Operating Income Breakdown by Factor
Operating Income Breakdown by Factor (CQ4, 2020 vs. CQ1, 2021) (Unit: Billions of Yen) 20.8 factors related to naphtha devaluation amortization of of inventory goodwill,etc.* in accordance with the “lower of cost or market” accounting method *Oct.-Dec. 2020:Includes inventory step-up costs of 10.9 b
Slide 6: Summary of Consolidated Sales and Operating Income by Segment (CQ4, 2020 vs. CQ1, 2021)
Summary of Consolidated Sales and Operating Income by Segment (CQ4, 2020 vs. CQ1, 2021) (Unit: Billions of Yen) CQ4, 2020 CQ1, 2021 Increase/decrease Sales 50.8 57.8 6.9 13.6% Petrochemicals O.I.* 3.6 5.5 1.9 51.9% Sales 42.8 41.3 -1.5 -3.4% Chemicals O.I. 4.2 4.9 0.7 16.7% Sales 28.7 21.7 -7.0 -24.
Slide 7: Sales and Operating Income by Segment (1) (CQ4, 2020 vs. CQ1, 2021)
Consolidated Sales and Operating Income by Segment (1) (CQ4, 2020 vs. CQ1, 2021) Petrochemicals (Unit: Billions of Yen) Chemicals (Unit: Billions of Yen) CQ4, CQ1, Increase/ CQ4, CQ1, Increase/ 2020 2021 decrease 2020 2021 Decrease Sales 50.8 57.8 6.9 Sales 42.8 41.3 -1.5 Operating Operating 3.6 5.5
Slide 8: Sales and Operating Income by Segment (2) (CQ4, 2020 vs. CQ1, 2021)
Consolidated Sales and Operating Income by Segment (2) (CQ4, 2020 vs. CQ1, 2021) Electronics (Unit: Billions of Yen) Inorganics (Unit: Billions of Yen) CQ4, CQ1, Increase/ CQ4, CQ1, Increase/ 2020 2021 decrease 2020 2021 decrease Sales 28.7 21.7 -7.0 Sales 21.6 21.2 -0.4 Operating Operating Income 4
Slide 9: Sales and Operating Income by Segment (3) (CQ4, 2020 vs. CQ1, 2021)
Consolidated Sales and Operating Income by Segment (3) (CQ4, 2020 vs. CQ1, 2021) Aluminum Showa Denko Materials (Unit: Billions of Yen) (Unit: Billions of Yen) CQ4, CQ1, Increase/ CQ4, CQ1, Increase/ 2020 2021 decrease 2020 2021 decrease Sales 21.7 22.5 0.7 Sales 157.9 159.6 1.7 Operating Income 0.7
Slide 10: Summary (CQ1, 2020 vs. CQ1, 2021)
Summary (CQ1, 2020 vs. CQ1, 2021) (Unit: Billions of Yen) Increase/ CQ1, 2020 CQ1, 2021 decrease Net sales 171.7 339.7 167.9 Operating income 2.5 20.8 18.3 Non-operating income and 0.8 4.3 3.5 expenses, net Ordinary income 3.2 25.1 21.9 Extraordinary profit/loss 0.2 -11.7 -11.9 Income before income
Slide 11: Operating Income Breakdown by Factor
Operating Income Breakdown by Factor (CQ1, 2020 vs. CQ1, 2021) (Unit: Billions of Yen) 20.8 -4.6 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 Sales and Operating Income by Segment (CQ1, 2020 vs. CQ1, 2021)
Summary of Consolidated Sales and Operating Income by Segment (CQ1, 2020 vs. CQ1, 2021) (Unit: Billions of Yen) CQ1, 2020 CQ1, 2021 Increase/decrease Sales 55.0 57.8 2.7 5.0% Petrochemicals O.I.* -0.2 5.5 5.7 - Sales 36.3 41.3 5.0 13.7% Chemicals O.I. 2.3 4.9 2.6 112.1% Sales 23.6 21.7 -1.9 -8.1% El
Slide 13: Sales and Operating Income by Segment (1) (CQ1, 2020 vs. CQ1, 2021)
Consolidated Sales and Operating Income by Segment (1) (CQ1, 2020 vs. CQ1, 2021) Petrochemicals (Unit: Billions of Yen) Chemicals (Unit: Billions of Yen) CQ1, CQ1, Increase/ CQ1, CQ1, Increase/ 2020 2021 decrease 2020 2021 decrease Sales 55.0 57.8 2.7 Sales 36.3 41.3 5.0 Operating Operating Income -
Slide 14: Sales and Operating Income by Segment (2) (CQ1, 2020 vs. CQ1, 2021)
Consolidated Sales and Operating Income by Segment (2) (CQ1, 2020 vs. CQ1, 2021) Electronics (Unit: Billions of Yen) Inorganics (Unit: Billions of Yen) CQ1, CQ1, Increase/ CQ1, CQ1, Increase/ 2020 2021 decrease 2020 2021 decrease Sales 23.6 21.7 -1.9 Sales 21.4 21.2 -0.2 Operating Operating Income 1
Slide 15: Sales and Operating Income by Segment (3) (CQ1, 2020 vs. CQ1, 2021)
Consolidated Sales and Operating Income by Segment (3) (CQ1, 2020 vs. CQ1, 2021) Aluminum Showa Denko Materials (Unit: Billions of Yen) (Unit: Billions of Yen) CQ1, CQ1, Increase/ CQ1, CQ1, Increase/ 2020 2021 decrease 2020*1 2021 decrease Sales 19.2 22.5 3.3 Sales 151.7 159.6 7.9 Operating Operatin
Slide 16: Non-operating income/expenses, Extraordinary profit/loss
Non-operating income/expenses, Extraordinary profit/loss Non-operating income/expenses (Unit: Billions of Yen) Increase/ CQ1, 2020 CQ1, 2021 decrease Main factors Interest/Dividends income Interest expenses and expenses 0.1 -2.1 -2.2 increased Equity method newly Equity in earnings of affiliates 0.4
Slide 17: Consolidated Balance Sheet
Consolidated Balance Sheet Consolidated Balance Sheet (Unit: Billions of Yen) Dec. 31, Mar. 31, Increase/ Dec. 31, Mar. 31, Increase/ Assets Liabilities and net assets 2020 2021 decrease 2020 2021 decrease Cash and deposits 199.0 182.3 -16.7 Notes and accounts payable 164.4 181.3 16.9 Notes and acco
Slide 18: 2021 1st Half Forecast
2021 1st Half Forecast (Unit: Billions of Yen) Earlier Revised forecast forecast Increase/ Full-year 2nd Half (Announced on (Announced on decrease 2021* Feb. 17, 2021) May 10, 2021) Net sales 630.0 695.0 65.0 650.0 1,345.0 Operating income 11.0 34.0 23.0 34.0 68.0 Non-operating income -5.0 1.0 6.0 -
Slide 19: Summary of Sales and Operating Income by Segment, 2021 1st Half Forecast
Summary of Sales and Operating Income by Segment, 2021 1st Half Forecast (Unit: Billions of Yen) Earlier Revised forecast forecast Increase/ Full-year 2nd Half (Announced on (Announced on decrease 2021*1 Feb. 17,2021) May 10, 2021) Petro- Sales 96.0 125.0 29.0 100.0 225.0 chemicals O.I. 4.5 9.0 4.5
Slide 20: (Reference) PPA Results and Amortization of Assets Pertaining to Showa Denko Materials
(Reference) PPA Results and Amortization of Assets Pertaining to Showa Denko Materials Co., Ltd. (Unit: Billions of Yen) Amortization amount Recognized Amortization amount Period 2020 2021 Results Forecast Intangible Fixed Assets 215.9 8.1 16.1 Customer related assets 154.9 20 years 3.9 7.7 Technolo
Slide 21: Topics
Topics Segment Topics Electronics Decided to increase capacity to produce aluminum platter for hard disks Inorganics Invested in AMI Automation 〔Graphite electrodes〕 Aluminum Announcement of execution of master agreement regarding series of transactions to effect, among other matters, the succession
Slide 22: 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