DENKA COMPANY LIMITED May 10th 2018
Summary of Consolidated Financial Results
Denka company Limited
1. Summary
1.1 Overview of FY2017
In FY 2017, operating income was 33.7 billion yen, and ordinary income was 31.5 billion yen, net income attributable owners of parent was 23.0 billion yen, all of them were record high profit because shipment of chloroprene rubber, electronics & innovative products increased, in addition, sales price revisions corresponding to rising raw material cost and the skip of shutdown maintenance of styrene monomer plant, although R&D expenses increased mainly in the healthcare field.
1.2 The result of FY2017 by segment
Elastomers & Performance Plastics : Earnings were much higher YOY because of price revision of chloroprene rubber and no shutdown maintenance of styrene monomer plant.
The Infrastructure & Social Solutions : However shipment of alumina fiber, underground drainpipes for agriculture and civil engineering were increased, earnings were lower YOY due to rise in the price of row material.
Electronics & Innovative Products : Earnings were higher YOY because shipment of electronic packing materials, fused silica filler for semiconductor sealants and spherical alumina were increased in addition to increased shipment of high conductive acetylene black "Denka Black" for Lithium-ion battery and High-voltage transmission cable.
Living & Environmental Products : Although sales price revisions corresponding to rising raw material cost of food packing, earning were lower YOY due to intensified price competition of PVDF based alloyed film "DX film" for photovoltaic modules backsheet.
Life Innovation : However sales volume of reagent increased, earnings were lower YOY because production and sales of influenza vaccines declined YOY owing to the delay in the selection of vaccine production strains, and R&D expenses increased.
Note; On 1st April 2018 Denka has shifted its segment of "Denka Black" from Elastomers & Performance Plastics to Electronics & Innovative Products and the products belongs to the segment in this summary.
1.3 Forecast of FY2018
We estimate our operating income of this year 36.0 billion yen, ordinaly income of 34.0 billion yen and net profit attributable to oweners of parent of 25.0 billion yen, they are highest for the second consecutive year.
We expect that growing demand for Electronics & Innovative Products and sales price revision of chloroprene rubber and styrene derivatives will contribute to increase in profit although there are negative impacts such as hike of raw material prices, yen appreciation, shutdown maintenance of styrene monomer plant and growing burden of R&D expenses and labor cost .
FY2017 Apr to Mar | FY2016 Apr to Mar | Incr. △Decr. | |
Net Sales | 395.6 | 362.6 | 33.0 |
Operating Income | 33.7 | 25.8 | 7.8 |
Ordinary Income | 31.5 | 23.2 | 8.3 |
Net Income | 23.0 | 18.1 | 4.9 |
FY2017 Apr to Mar | FY2016 Apr to Mar | Incr. △Decr. | ||
Elastomers ＆ Performance Plastics materials | Sales | 170.1 | 144.9 | 25.2 |
Operating Income | 15.4 | 6.5 | 8.9 | |
Infrastructure ＆ Social Solutions | Sales | 53.1 | 51.8 | 1.3 |
Operating Income | 0.2 | 0.9 | ᇞ 0.7 | |
Electronics ＆ Innovative Products | Sales | 62.6 | 53.1 | 9.6 |
Operating Income | 10.9 | 8.4 | 2.5 | |
Living ＆ Environment Products | Sales | 41.0 | 41.2 | ᇞ 0.2 |
Operating Income | 0.8 | 1.5 | ᇞ 0.7 | |
Life innovation | Sales | 32.3 | 34.0 | ᇞ 1.7 |
Operating Income | 5.5 | 7.9 | ᇞ 2.4 | |
Others/ Companywide | Sales | 36.4 | 37.7 | ᇞ 1.2 |
Operating Income | 0.8 | 0.7 | 0.1 | |
Total | Sales | 395.6 | 362.6 | 33.0 |
Operating Income | 33.7 | 25.8 | 7.8 |
1.4 Consolidated Financial Results and Forecast | Billions of Yen | |||
395.6 | 362.6 | 33.0 | 195.0 | 410.0 |
33.7 | 25.8 | 7.8 | 14.0 | 36.0 |
31.5 | 23.2 | 8.3 | 13.0 | 34.0 |
23.0 | 18.1 | 4.9 | 10.0 | 25.0 |
2. Net Sales and Operating Income by segments | Billions of Yen | |||
170.1 | 144.9 | 25.2 | 88.5 | 178.5 |
15.4 | 6.5 | 8.9 | 6.0 | 13.0 |
53.1 | 51.8 | 1.3 | 27.5 | 55.5 |
0.7 | 1.0 | 2.0 | ||
62.6 | 53.1 | 9.6 | 33.5 | 68.5 |
10.9 | 8.4 | 2.5 | 5.5 | 12.5 |
0.2 | 20.5 | 41.5 | ||
0.7 | 0.5 | 1.5 | ||
1.7 | 12.0 | 34.5 | ||
2.4 | 0.5 | 6.0 | ||
1.2 | 13.0 | 31.5 | ||
0.8 | 0.7 | 0.1 | 0.5 | 1.0 |
395.6 | 362.6 | 33.0 | 195.0 | 410.0 |
33.7 | 25.8 | 7.8 | 14.0 | 36.0 |
FY2018 Forecast Apr to Sep | FY2018 Forecast Apr to Mar |
195.0 | 410.0 |
14.0 | 36.0 |
13.0 | 34.0 |
10.0 | 25.0 |
FY2018 Forecast Apr to Sep | FY2018 Forecast Apr to Mar |
88.5 | 178.5 |
6.0 | 13.0 |
27.5 | 55.5 |
1.0 | 2.0 |
33.5 | 68.5 |
5.5 | 12.5 |
20.5 | 41.5 |
0.5 | 1.5 |
12.0 | 34.5 |
0.5 | 6.0 |
13.0 | 31.5 |
0.5 | 1.0 |
195.0 | 410.0 |
14.0 | 36.0 |
3. Key operating factors
FY2017 Apr to Mar | FY2016 Apr to Mar | Incr. △Decr. | |
Investment Capital expenditure M&A etc. | 22.7 4.3 | 25.7 1.2 | ᇞ 3.0 3.1 |
27.0 | 26.9 | 0.1 | |
Depreciation | 24.6 | 24.4 | 0.3 |
Research and Development | 13.9 | 13.0 | 0.8 |
Interest-bearing debt | 108.3 | 113.7 | ᇞ 5.5 |
3.0
27.0 24.6 13.9
26.9 24.4 13.0
0.1 0.3 0.8 5.5
FY2017 Apr to Mar | FY2016 Apr to Mar | |
Yen/USD exchange rate | 111.3 | 108.8 |
Naphtha price (yen/Kl) | 42,200 | 34,600 |
111.3 42,200
108.8 34,600
Billions of Yen
FY2018 Forecast Apr to Sep | FY2018 Forecast Apr to Mar |
15.0 TBD | 31.0 TBD |
15.0 | 31.0 |
11.5 | 23.5 |
7.5 | 15.0 |
112.0 | 108.0 |
15.0
31.0
15.0 11.5 7.5 112.0
31.0 23.5 15.0 108.0
FY2017 Forecast Apr to Mar | FY2016 Actual Apr to Mar |
106.0 | 106.0 |
46,000 | 46,000 |
106.0 46,000
106.0 46,000
4. Sales by segments
Billions of Yen
Sales | |||||
FY2017 Apr to Mar | FY2016 Apr to Mar | Incr. △Decr. Sales priceSales volume | |||
Elastomers ＆ Performance Plastics | 170.1 | 144.9 | 25.2 | 25.7 | ᇞ 0.5 |
Infrastructure ＆ Social Solutions | 53.1 | 51.8 | 1.3 | 0.0 | 1.3 |
Electronics ＆ Innovative Products | 62.6 | 53.1 | 9.6 | ᇞ 0.4 | 9.9 |
Living ＆ Environment Products | 41.0 | 41.2 | ᇞ 0.2 | 0.4 | ᇞ 0.6 |
Life innovation | 32.3 | 34.0 | ᇞ 1.7 | ᇞ 0.6 | ᇞ 1.0 |
Others | 36.4 | 37.7 | ᇞ 1.2 | - | ᇞ 1.2 |
Total | 395.6 | 362.6 | 33.0 | 25.1 | 7.9 |
4. Operating income by segments
Operating income | ||||||
FY2017 Apr to Mar | FY2016 Apr to Mar | Incr. △Decr. Sales priceSales volumeOperating cost and others | ||||
Elastomers ＆ Performance Plastics | 15.4 | 6.5 | 8.9 | 25.7 | 1.9 | ᇞ 18.6 |
Infrastructure ＆ Social Solutions | 0.2 | 0.9 | ᇞ 0.7 | 0.0 | 0.3 | ᇞ 1.0 |
Electronics ＆ Innovative Products | 10.9 | 8.4 | 2.5 | ᇞ 0.4 | 5.2 | ᇞ 2.3 |
Living ＆ Environment Products | 0.8 | 1.5 | ᇞ 0.7 | 0.4 | ᇞ 0.2 | ᇞ 0.9 |
Others | 5.5 | 7.9 | ᇞ 2.4 | ᇞ 0.6 | ᇞ 0.6 | ᇞ 1.1 |
Others/Companywide | 0.8 | 0.7 | 0.1 | - | 0.0 | 0.1 |
Total | 33.7 | 25.8 | 7.8 | 25.1 | 6.6 | ᇞ 23.8 |
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Disclaimer
Denka Co. Ltd. published this content on 10 May 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 10 May 2018 02:27:04 UTC
