Summary of Consolidated Financial Results

1. Summary

1.1 Progress toward forecasts

Operating Income of 10.8 billion yen in three months ended December 31st 2017 was higher YOY.

In nine months ended December 31st 2017, the cost of R & D increased mainly in the healthcare field, on the other hand shipment of chloroprene rubber and electronics & innovative products increased in addition sales price revisions corresponding to rising raw material prices. Therefore operating income was 25.1 billion yen, and ordinary income was 25.6 billion yen, net income was 18.9 billion yen, all of them are higher YOY and highest ever the 3rd quarter.

We expect to continue strong shipment of chloroprene rubber and electronic and advanced products. Therefore the full-year forecast operating profit, upward to 33.0 billion yen.

1.2 The result of 3rd quarter ( Apr to Dec) and the forecast of fiscal year by segment

Elastomers & Performance Plastics : Earnings of 3rd quarter 11.7 billion yen were higher YOY, because of non-shutdown maintenance year and price revision of chloroprene rubber. We estimate 15.5 billion yen of earnings, 2.0 billion higher than last estimation, due to continuance of those trends .

The Infrastructure & Social Solutions : Earnings of 3rd quarter were 0.7 billion yen same level as previous year. Although sales of special cement additives were lower YOY, shipments of alumina fiber, corrugated tubes for both agriculture and civil engineering and exported cement were increased. We estimate 1.0 billion yen of earnings 0.5 billion yen lower than last estimation.

Electronics & Innovative Products : Earnings of 3rd quarter 7.0 billion yen were higher YOY. Because shipment of fused silica filler and spherical alumina for semiconductor sealants, ALONBIGHT(SiAlON Phosphor), electronic packing materials, thermally conductive aluminum substrates and highly-reliable thermally conductive plates were increased.

We expect earnings of 4th quarter will be higher YOY since the sales of these products will continue to gain. As a result in fiscal year, we estimate earnings will be 9.5 yen billion yen, same as last estimation.

Living & Environmental Products : Earnings of 3rd quarter 1.0 billion yen and lower YOY. Because shipments of synthetic fiber decreased YOY. We estimate earnings will be 1.0 billion yen, 0.5 billion yen lower than last estimation.

Life Innovation : Although sales volume of reagent increased, due to the fact that production and sales of influenza vaccines accompanying delays in the selection of vaccine production strains declined YOY and the burden of R & D expenses, etc., earnings of 3rd quarter were 4.3 billion yen, lower YOY. We estimate earnings will be 5.5 billion yen, same last estimation.

FY2017 3rd Quarter Apr to Dec

FY2016 3rd Quarter Apr to Dec

Incr.Decr.

Net Sales

293.1

266.7

26.4

Operating Income

25.1

18.8

6.4

Ordinary Income

25.6

17.5

8.1

Net Income

18.9

13.6

5.4

FY2017 3rd Quarter Apr to Dec

FY2016 3rd Quarter Apr to Dec

Incr.Decr.

Elastomers Performance Plastics materials

Sales

131.1

108.2

22.9

Operating Income

11.7

4.6

7.1

Infrastructure Social Solutions

Sales

40.0

38.6

1.4

Operating Income

0.7

0.9

0.2

Electronics Innovative Products

Sales

40.2

33.9

6.4

Operating Income

7.0

5.1

1.9

Living Environment Products

Sales

31.0

31.2

0.2

Operating Income

1.0

1.5

0.5

Life innovation

Sales

24.9

26.9

2.0

Operating Income

4.3

6.4

2.1

Others/ Companywide

Sales

26.0

28.0

2.1

Operating Income

0.5

0.3

0.2

Total

Sales

293.1

266.7

26.4

Operating Income

25.1

18.8

6.4

1.4 Consolidated Financial Results and Forecast

Billions of Yen

293.1

266.7

26.4

400.0

362.6

25.1

18.8

6.4

33.0

25.8

25.6

17.5

8.1

31.0

23.2

18.9

13.6

5.4

22.0

18.1

2. Net Sales and Operating Income by segments

Billions of Yen

131.1

108.2

22.9

179.0

151.7

11.7

4.6

7.1

15.5

7.8

40.0

38.6

1.4

54.0

51.8

0.2

1.0

0.9

40.2

33.9

6.4

56.0

46.3

7.0

5.1

1.9

9.5

7.1

0.2

42.0

41.2

0.5

1.0

1.5

2.0

34.0

34.0

2.1

5.5

7.9

2.1

35.0

37.7

0.5

0.3

0.2

0.5

0.7

293.1

266.7

26.4

400.0

362.6

25.1

18.8

6.4

33.0

25.8

FY2017

Forecast Apr to Mar

FY2016

Actual Apr to Mar

400.0

362.6

33.0

25.8

31.0

23.2

22.0

18.1

FY2017 Forecast Apr to Mar

FY2016

Actual Apr to Mar

179.0

151.7

15.5

7.8

54.0

51.8

1.0

0.9

56.0

46.3

9.5

7.1

42.0

41.2

1.0

1.5

34.0

34.0

5.5

7.9

35.0

37.7

0.5

0.7

400.0

362.6

33.0

25.8

3. Key operating factors

FY2017 3rd Quarter Apr to Dec

FY2016 3rd Quarter Apr to Dec

Incr.Decr.

Investment

Capital expenditu M&A etc.

16.5

18.1

1.6

4.2

0.8

3.4

20.7

18.9

1.8

Depreciation

18.6

18.2

0.3

Research and Development

10.2

9.6

0.6

Interest-bearing debt

123.5

122.6

0.9

1.6

4.2

0.8

3.4

20.7

18.9

1.8

18.6

18.2

0.3

10.2

9.6

0.6

123.5

122.6

0.9

FY2017 3rd Quarter Apr to Dec

FY2016 3rd Quarter Apr to Dec

Yen / USD exchange rate

111.8

106.9

Naphtha price (yen/ Kl)

40,000

32,800

111.8 40,000

106.9 32,800

Billions of Yen

FY2017 Forecast Apr to Mar

FY2016

Actual Apr to Mar

27.0

25.7

4.2

1.2

31.2

26.9

25.0

24.4

15.0

13.0

112.0

113.7

27.0

25.7

4.2

1.2

31.2

26.9

25.0

24.4

15.0

13.0

112.0

113.7

4. Sales by segments

FY2017 Forecast Apr to Mar

FY2016

Actual Apr to Mar

111.4

108.8

42,550

34,600

Billions of Yen

111.4 42,550

108.8 34,600

Sales

FY2017 3rd Quarter Apr to Dec

FY2016 3rd Quarter Apr to Dec

Incr.Decr.

Sales priceSales volume

Elastomers Performance Plastics

131.1

108.2

22.9

20.0

2.9

Infrastructure Social Solutions

40.0

38.6

1.4

0.0

1.4

Electronics Innovative Products

40.2

33.9

6.4

0.3

6.7

Living Environment

Products

31.0

31.2

0.2

0.5

0.7

Life innovation

24.9

26.9

2.0

0.4

1.6

Others

26.0

28.0

2.1

-

2.1

Total

293.1

266.7

26.4

19.8

6.6

4. Operating income by segments

Operating income

FY2017 3rd Quarter Apr to Dec

FY2016 3rd Quarter Apr to Dec

Incr.Decr.

Sales priceSales volumeOperating cost and others

Elastomers Performance Plastics

11.7

4.6

7.1

20.0

2.2

15.0

Infrastructure Social Solutions

0.7

0.9

0.2

0.0

0.3

0.5

Electronics Innovative Products

7.0

5.1

1.9

0.3

3.5

1.3

Living Environment

Products

1.0

1.5

0.5

0.5

0.3

0.7

Others

4.3

6.4

2.1

0.4

0.9

0.9

Others/Companywide

0.5

0.3

0.2

-

0.0

0.2

Total

25.1

18.8

6.4

19.8

4.8

18.2

Denka Co. Ltd. published this content on 07 February 2018 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 07 February 2018 02:24:06 UTC.

Original documenthttp://www.denka.co.jp/eng/news/pdf/20180207_fr.pdf

Public permalinkhttp://www.publicnow.com/view/DF45683E60329C500F6F24C9A460F8901C544E3F