Denka Co., Ltd. · TSE:4061
Denka — FY2020 Q3 Earnings Presentation
16 slides from Denka's earnings presentation, February 2021
Slide 1: Results Presentation of FY2020 3Q
Results Presentation of FY2020 3Q Denka Co.,Ltd February 2021
Slide 2: Contents
Contents 1 FY2020 Q3 Results a) Summary （Year-on-Year Comparison ） 02 b) Change Factors （Year-on-Year Comparison ） 03 c) by Segment （Year-on-Year Comparison ） 05 2 FY2020 Earnings Forecast a) Summary （Year-on-Year Comparison） 06 b) Assumptions Used to Formulate Forecast 07 c) by Segment（Year-on-Year
Slide 3: FY2020 Q3 Results: Summary (Year-on-Year Comparison)
FY2020 Q3 Results a) Summary （Year-on-Year Comparison） FY2020 FY2019 Apr-Dec Apr-Dec Incr. (¥ billions) Actual Actual Decr. Sales 262.0 288.7 ‐ 26.7 Elastomer & Performance Plastics ‐5.9 Infrastructure & Social Solutions ‐0.2 Electronics & Innovative Products + 1.6 Operating Income 28.0 24.0 ＋ 4.0 L
Slide 4: Q3 Results: Change Factors (Year-on-Year Comparison)
FY2020 Q3 Results b) Change Factors （Year-on-Year Comparison） YoY (¥ billions) Sales 262.0 billion - 26.7 1. Volume: Difference due to the impact of the novel coronavirus pandemic - 7.0 2. Pricing: Difference due to styrene-based product price revisions in - 19.7 connection with the raw materials ma
Slide 5: Operating Income Change Factors
FY2020 Q3 Results b) Change Factors （Year-on-Year Comparison） Operating Income Change factors (¥ billions) + 17.4 28.0 + 3.5 24.0 - 3.9 - 0.5 - 12.4 Rapid Antigen Test for Other administrative Impact of COVID-19, expenses the novel xEV-related, Sales prices -17.8 Sales prices -1.8 and coronavirus Se
Slide 6: Q3 Results by Segment (Year-on-Year Comparison)
FY2020 Q3 Results c) by Segment （Year-on-Year Comparison） FY2020 FY2019 Sales Apr-Dec Apr-Dec Incr. (¥ billions) Actual Actual Decr. Pricing Volume Elastomers & Performance Plastics 86.4 112.1 - 25.7 - 17.6 - 8.1 Infrastructure & Social Solutions 38.4 41.3 - 2.9 + 0.3 - 3.2 Electronic & Innovative P
Slide 7: FY2020 Earnings Forecast: Summary (Year-on-Year Comparison)
FY2020 Earnings Forecast a) Summary （Year-on-Year Comparison） FY2020 FY2019 Forecast Actual Incr. (¥ billions) Decr. Sales 350.0 380.8 ‐ 30.8 Elastomer & Performance Plastics ‐ 7.9 Infrastructure & Social Solutions ‐ 0.3 Electronics & Innovative Products + 0.6 Operating Income 33.0 31.6 ＋ 1.4 Living
Slide 8: Assumptions Used to Formulate Forecast
FY2020 Earnings Forecast b) Assumptions Used to Formulate Forecast FY2020 Apr-Dec Jan-Mar FY2019 Apr-Dec Jan-Mar Assumptions Forecast Actual Forecast Actual Actual Actual Forex 106.1 106.1 106.0 109.1 109.1 109.3 (¥/$) Japan Naphtha 30,150 29,360 32,500 42,650 42,600 43,700 (¥/Kl) Reference FY2020 A
Slide 9: Earnings Forecast by Segment (Year-on-Year Comparison)
FY2020 Earnings Forecast c) by Segment （Year-on-Year Comparison） Sales FY2020 FY2019 Incr. (¥ billions) Forecast Actual Decr. Pricing 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 Produc
Slide 10: Comments on Earnings Forecast
FY2020 Earnings Forecast d) Comments on Earnings Forecast Initial Projected Full-Year Operating Income 31.0 billion Forecast COVID-19 Infection (assumption) ー Gradual subsidence beginning in Q2; normal conditions beginning in Q3 Projected Full-Year Operating Income 31.0 billion (unchanged) Lower Ups
Slide 11: Shareholder Returns and Investment-Related Data
FY2020 Earnings Forecast e) Shareholder Returns and Investment-Related Data FY2016 FY2017 FY2018 FY2019 FY2020 Full- Actual Actual Actual Actual Year Forecast Net income (¥ billions) 18.1 23.0 25.0 22.7 22.0 Dividends per share* (¥/share) 70.0 105.0 120.0 125.0 125.0 Total dividend (¥ billions) 6.2
Slide 12: Growth of Specialty Businesses
FY2020 Earnings Forecast f) Growth of Specialty Businesses FY2017 Actual FY2018 Actual FY2019 Actual FY2020 Forecast Operating Income 33.7B Operating Income 34.2B Operating Income 31.6B Operating Income 33.0B Operating Margin 8.5 % Operating Margin 8.3 % Operating Margin 8.3 % Operating Margin 9.4 %
Slide 13: Environmental Management (Carbon-Neutral Initiatives)
Environmental Management (Carbon-Neutral Initiatives) Medium- to long-range targets for greenhouse gas emission reductions Expand use of clean energy and adopt high-efficiency gas turbine 1 power generation (Scope 1 + Scope 2) (Unit: 10,000t-CO2 / year) ー Approximately 40% of total Denka electricity
Slide 14: Environmental Management at Denka Performance Elastomer (DPE)
(Reference) Environmental Management at Denka Performance Elastomer (DPE) News Release List（ Denka's website） June 19, 2019 “Statement regarding NATA’s Toxicity Assessments on the Areas Surrounding Denka’s U.S. Subsidiary and InitiativesBeing Undertaken to Reduce Environmental Burden” https://www.de
Slide 15: 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 16: Possibility of chemistry
Possibility of chemistry Denka