Slide 1: Results Presentation of FY2020 2Q
Results Presentation of FY2020 2Q Denka Co.,Ltd November 2020
Slide 2: Table Of Contents
Table Of Contents 1 FY2020 Forecast Revision ① Summery (vs Forecast at the beginning) 02 ② Growth of Specialty Businesses 03 2 FY2020 1st Half Results ① Summery (year on year) 04 ② Variance Analysis ( year on year) 05 ③ By Segments ( year on year) 07 ④ Summery（vs Forecast as of August） 08 ⑤ By Segme
Slide 3: FY2020 Forecast Revision: Summary (vs Forecast at the beginning)
FY2020 Forecast Revision ① Summery (vs Forecast at the beginning) Revised Previous Incr. in billion Yen Forecast Forecast △Decr. Sales 350.0 360.0 △ 10.0 Elastomer & Performance Plastics △ 4.5 Infrastructure & Social Solutions △ 1.5 Electronics & Innovative Products △ 0.5 Operating Income 33.0 31.0
Slide 4: FY2020 Forecast Revision: Growth of Specialty Businesses
FY2020 Forecast Revision ②Growth of Specialty Businesses FY2017 Actual FY2018 Actual FY2019 Actual FY2020 Forecast 33.7 billion 34.2 billion 31.6 billion 33.0 billion Operating Operating Operating Operating Income Income Income Income Operating Operating Operating Operating Margin 8.5 % Margin 8.3 %
Slide 5: 1st Half Results: Summary (year on year)
FY2020 1st Half Results ① Summery (year on year) FY 2020 FY 2019 Incr. in billion Yen 1st Half Act 1st Half Act △Decr. Sales 160.3 192.0 △ 31.7 Elastomer & Performance Plastics △ 4.8 Infrastructure & Social Solutions △ 0.1 Electronics & Innovative Products + 0.8 Operating Income 12.1 15.3 △ 3.3 Livi
Slide 6: 1st Half Results: Variance Analysis (year on year)
FY2020 1st Half Results ② Variance Analysis ( year on year) year on year （in billion Yen） Sales 160.3billion △31.7 1. Decrease in sales volume ：Impact of the novel coronavirus pandemic, etc. △ 18.8 2. Differences in sales prices：impact of downward revisions of sales prices of styrene-based products
Slide 7: 1st Half Results: Variance Analysis, Operating Income Variation Factors
FY2020 1st Half Results ② Variance Analysis ( year on year) Operating Income Variation factors in billion Yen 15.3 △ 9.1 △ 0.2 12.1 + 2.3 + 3.9 + 0.1 △ 0.4 Other Electronic & administrative Impact of Innovative Products, and the novel Cost +11.8 Price △1.1 manufacturing Influenza R&D coronavirus Vac
Slide 8: 1st Half Results: By Segments (year on year)
FY2020 1st Half Results ③ By Segments ( year on year) Sales FY 2020 FY 2019 Incr. in billion yen 1st Half Act 1st Half Act △Decr. Price Volume Elastomers & Performance Plastics 54.6 78.7 △ 24.1 △ 11.9 △ 12.2 Infrastructure & Social Solutions 24.5 26.9 △ 2.5 + 0.2 △ 2.7 Electronic & Innovative Produc
Slide 9: 1st Half Results: Summary (vs Forecast as of August)
FY2020 1st Half Results ④ Summery （vs Forecast as of August） Forecast FY 2020 as of Incr. in billion Yen 1st Half Act August △Decr. Sales 160.3 160.0 + 0.3 Elastomer & Performance Plastics △ 0.9 Infrastructure & Social Solutions △ 0.8 Electronics & Innovative Products + 0.1 Operating Income 12.1 12.
Slide 10: 1st Half Results: By Segments (vs Forecast as of August)
FY2020 1st Half Results ⑤ By Segments （vs Forecast as of August） FY 2020 Forecast Sales 1st Half as of Incr. in billion yen Act August △Decr. Price Volume Elastomers & Performance Plastics 54.6 55.0 △ 0.4 △ 0.2 △ 0.3 Infrastructure & Social Solutions 24.5 25.0 △ 0.5 △ 0.1 △ 0.4 Electronic & Innovati
Slide 11: FY2020 Forecast: Summary (year on year)
FY2020 Forecast ① Summery (year on year) FY 2020 FY2020 FY 2019 Forecast Forecast Actual 1st Half 2nd Half At the beginning in billion Yen Actual Forecast Sales 350.0 160.3 189.7 360.0 380.8 Operating Income 33.0 12.1 20.9 31.0 31.6 Operating Margin 9.4% 7.5% 11.0% 8.6% 8.3% Ordinary Income 30.0 12.
Slide 12: Assumptions used to formulate forecast
FY2020 Forecast ② Assumptions used to formulate forecast Expected 31.0billion 1st Full Operating Income Half TBD Year Forecast at the Assumption of the novel coronavirus pandemic beginning ー The effect of the pandemic would gradually taper off from the second quarter onward and economic activity wou
Slide 13: Economic Precondition
FY2020 Forecast ③ Economic Precondition Economic FY2020 1st Half 2nd Half FY2019 1st Half 2nd Half Precondition Forecast Actual Forecast Actual Actual Actual Forex 106.4 106.8 106.0 109.1 109.2 109.1 [USD 1.0 = Yen] Naphtha price [Yen/Kl] 30,400 28,250 32,500 42,650 42,800 42,500 Reference FY2020 1s
Slide 14: FY2020 Forecast: Variance Analysis (year on year)
FY2020 Forecast ④ Variance Analysis ( year on year) year on year （in billion Yen） Sales 350.0billion △30.8 1. Decrease in sales volume ：Impact of the novel coronavirus pandemic △37.6 （The pandemic’s impact in FY2019: △1.4; FY2020: △39.0） Other +32.1 （Rapid Antigen Test for COVID-19, xEV-related prod
Slide 15: Variance Analysis: Operating Income Variation Factors
FY2020 Forecast ④ Variance Analysis ( year on year) Operating Income Variation factors in billion Yen + 20.1 △ 4.4 + 2.4 △ 1.0 33.0 △ 0.8 31.6 △ 15.0 Other administrative Impact of Diagnostic and Reagents , Price △22.9 Price △2.4 the novel manufacturing R&D xEV-related vs costs, coronavirus products
Slide 16: By Segments (year on year)
FY2020 Forecast ⑤ By Segments (year on year) Sales FY2020 FY2019 Incr. in billion yen Forecast Actual △Decr. Price Volume Elastomers & Performance Plastics 115.0 149.3 △34.3 △ 22.4 △ 11.9 Infrastructure & Social Solutions 52.0 54.8 △ 2.8 + 0.4 △ 3.2 Electronic & Innovative Products 70.0 68.0 + 2.0 △
Slide 17: By Segments (vs Forecast at the beginning)
FY2020 Forecast ⑥ By Segments （vs Forecast at the beginning） Forecast Sales FY2020 at the Incr. in billion yen Forecast beginning △Decr. Price Volume Elastomers & Performance Plastics 115.0 125.0 △ 10.0 △ 4.2 △ 5.8 Infrastructure & Social Solutions 52.0 55.0 △ 3.0 △ 0.4 △ 2.6 Electronic & Innovative
Slide 18: Shareholder Return
FY2020 Forecast ⑦ Shareholder Return FY2016 FY2017 FY2018 FY2019 FY2020 Actual Actual Actual Actual Forecast Net income （in billion Yen） 18.1 23.0 25.0 22.7 22.0 Dividend per share * （Yen） 70.0 105.0 120.0 125.0 125.0 Total Dividend （in billion Yen） 6.2 9.2 10.5 10.8 10.8 Payout Ratio 34% 40% 42% 48
Slide 19: 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 20: Possibility of chemistry
Possibility of chemistry Denka