SDK Revises 2020 Consolidated Performance Forecast and Dividend Payment Forecast

TOKYO, May 15, 2020 – (ACN Newswire) – Showa Denko (SDK; TSE:4004) announces its decision to withdraw its forecast of consolidated financial results for the first half of 2020 and full-year 2020 published on February 13, 2020. This is because SDK considers that it is very difficult to calculate the degree of influence of the coronavirus disease 2019 (COVID-19), and the sharp decline in crude oil prices, on SDK's financial results. SDK also decided to withdraw its forecast of dividend payment for 2020. Thus, SDK's consolidated performance forecast and dividend payment forecast are left undecided for the time being. We sincerely apologize for the inconvenience caused to our shareholders, investors and other parties.

1. Revised forecast of consolidated business results

(1) For the first half of 2020 (Jan. 1 – June 30, 2020)
Table 1: http://acnnewswire.com/topimg/SDK_20201Q_1.jpg

(2) For full-year 2020 (Jan. 1 – Dec. 31, 2020)
Table 1: http://acnnewswire.com/topimg/SDK_20201Q_2.jpg

(3) Reasons for the revision
In the latter part of the first quarter, we started to feel the impact of the outbreak of COVID-19 on our business results through production cuts by our customers, mainly in China. In the second quarter, we are now seeing a serious economic slowdown due to the pandemic in major markets, including Europe and the United States. Customers in many countries are cutting production as a result of restrictions on outings. These factors are expected to have a significant impact on SDK's business results. Furthermore, the sharp decline in crude oil prices will affect SDK's petrochemical business, as a sharp decline in naphtha price will generate a negative influence of the difference between the receipts and disbursements of raw materials. However, the situation is extremely uncertain at present, and we cannot accurately predict the real impact of COVID-19 on the global economy, the time when the pandemic ends, and how crude oil prices fluctuate. In view of the extreme difficulty in making a reasonable estimate, we have decided to withdraw our performance forecast announced on February 13, 2020. As soon as it becomes possible to make a reasonable estimate, we will announce a new performance forecast.

2. Revised forecast of dividend payment

(1) Revised forecast
Table 1: http://acnnewswire.com/topimg/SDK_20201Q_3.jpg

(2) Reasons for the revision
As it is now difficult to estimate the influence of the COVID-19 pandemic and the sharp decline in crude oil prices on SDK's financial results, we have decided to withdraw our dividend payment forecast announced on February 13, 2020. We will announce a new dividend payment forecast as soon as it becomes possible to make a reasonable estimate of our business results.

About Showa Denko K.K.

Showa Denko K.K. (SDK; TSE:4004, ADR:SHWDY) is a major manufacturer of chemical products serving from heavy industry to computers and electronics. The Petrochemicals Sector provides cracker products such as ethylene and propylene, the Chemicals Sector provides industrial, high-performance and high-purity gases and chemicals for semicon and other industries, the Inorganics Sector provides ceramic products, such as alumina, abrasives, refractory/ graphite electrodes and fine carbon products. The Aluminum Sector provides aluminum materials and high-value-added fabricated aluminum, the Electronics Sector provides HD media, compound semiconductors such as ultra high bright LEDs, and rare earth magnetic alloys, and the Advanced Battery Materials Department (ABM) provides lithium-ion battery components. For more information, please visit http://www.sdk.co.jp/english/.

Contact:
IR Office, Finance & Accounting Department, Tel: 81-3-5470-3323

Showa Denko Announces 2020 First Quarter Financial Results

TOKYO, May 15, 2020 – (ACN Newswire) – Showa Denko K.K. (SDK; TSE:4004) today announced its 2020 first quarter financial results.

– 2020 First Quarter Consolidated Financial Statements and summary
https://www.sdk.co.jp/assets/files/english/ir/library/fss2020-1q.pdf

The Company also issued the following supporting release:

– SDK Revises 2020 Consolidated Performance Forecast and Dividend Payment Forecast
www.sdk.co.jp/assets/files/english/news/2020/20200515_sdknewsrelease_e.pdf

About Showa Denko K.K.

Showa Denko K.K. (SDK; TSE:4004, ADR:SHWDY) is a major manufacturer of chemical products serving from heavy industry to computers and electronics. The Petrochemicals Sector provides cracker products such as ethylene and propylene, the Chemicals Sector provides industrial, high-performance and high-purity gases and chemicals for semicon and other industries, the Inorganics Sector provides ceramic products, such as alumina, abrasives, refractory/ graphite electrodes and fine carbon products. The Aluminum Sector provides aluminum materials and high-value-added fabricated aluminum, the Electronics Sector provides HD media, compound semiconductors such as ultra high bright LEDs, and rare earth magnetic alloys, and the Advanced Battery Materials Department (ABM) provides lithium-ion battery components. For more information, please visit http://www.sdk.co.jp/english/.

Contact:
Showa Denko K.K., IR Office, Finance & Accounting Department, Tel: 81-3-5470-3323

The Executive Talk: Global Green Chemicals PCL (SET:GGC)

BANGKOK, Apr 14, 2020 – (ACN Newswire) – Global Green Chemicals PCL (SET:GGC) Managing Director, Mr. Witoon Suewatanakul discusses the company's strategy and outlook in The Executive Talk (TET) by ShareInvestor.com.

TET: Please explain GGC's business model.

GGC's aspiration is to become a leading Green Chemical Company. Being a listed company on the Stock Exchange of Thailand since 2017, GGC has embarked on investing in our products and capacity. Currently our two main businesses are biofuels and biochemicals which include Methyl Esther (ME), Fatty Alcohols (FA) and Glycerine. These products are commonly used in the automotive industry, personal care, home care, and pharmaceuticals. With our current investment projects, GGC will be expanding into bioplastics which is an exciting industry and we will be able to provide higher value-added products to the global marketplace and ultimately achieve our company's aspiration.

TET: What is the status and impact of the investment's projects that GGC?

There are two key projects, the first project is the Refined Glycerine Plant #2, an investment of 363 million baht which is on target to COD by the fourth quarter of 2020. It is an integrated project to enhance the value of by-products from Crude Glycerine from our ME production and allow us to capture the market growth of high-volume industries.

The second project is Nakhonsawan Biocomplex (NBC) Phase1, an investment of 7.5 billion baht which is expected to be completed by the first quarter of 2021. It is a joint venture between GGC and Kaset Thai International Sugar Corporation Plc (KTIS). NBC is an integrated complex to produce biofuels, biochemicals, and bioplastics from sugarcane. We will start Phase1 which consists of 1) crushing mill with a nameplate capacity 2.4 million tonnes per year 2) ethanol plant with a nameplate capacity of 185 million litres per year and 3) biomass power plant to generate electricity and steam with a nameplate capacity 85 MW and 475 tonnes per hour, respectively.

TET: What impact does the government policies have upon the industry in Thailand?

The agricultural sector is a crucial industry for Thailand. An example of how GGC works with the Ministry's is on the implementation of B10 and B20. We are a biodiesel expert in Thailand and understand the end-use of our products. The Ministry of Agriculture is responsible for the supply side while on the demand side we support the Ministry of Energy the possibilities of the high blending ratio, including the impact and the consequences of using it.

Also, the automotive industry is reluctant to implement the high bio content and we have to cooperate with the Ministry to convince the associations to make adjustments to allow the use of bio-fuels in their engines, further climbing up blending rate close to Indonesia and Malaysia.

Thailand has sufficient raw materials such as cassava, sugar cane and oil palm. The first two are raw materials for ethanol. Brazil today very well adjusts the blending rate as they are at E100 today when sugar prices are low, and when sugar prices increase, they will reduce to E50. This helps balance the demand and supply in their domestic markets. For Thailand we are implementing the same ideas to ensure that agricultural prices can remain relatively stable for the population.

TET: How does GGC manage the volatility of commodity prices?

Commodities are volatile by nature as we cannot control the climate, but we ensure that we are effective with a strong team to manage the costs and revenues efficiently. Also, we employ good technology that provides flexibility of feedstock among Crude Palm Oil (CPO) and other alternatives feedstock.

For Biodiesel the pricing mechanism in Thailand is that the government has laid the foundation that it is a cost plus, and import of external feedstock is not allowed, so we only use the domestic feedstock. Our supply chain management minimise the risk exposure to ensure that the company has a certain margin as we do not want to speculate on the pricing.

Now the CPO price in Thailand is regulated and not 100% correlated to the global prices because of the Government's regulation. And, Thailand's CPO price is higher than the global price. This is the hurdle for biodiesel export as feedstock is the major cost of production.

For our second business, Fatty Alcohols, we refer global price, demand and supply, and our performance is based upon our technologies and efficiencies to produce high value-added products.

TET: What differentiates GGC from its peers?

Our technology and focus on operational excellence differentiate us from our peers. As GGC is part of the PTT Global Chemical Plc group, there is a strong focus on operational excellence, this is an important criteria for us and is demonstrated in our operational safety and reliability. With the ME plant #2 expansion and the Biocomplex, we are employing the latest technology resulting in having additional high value-added products and expanding into a new industry.

TET: What do you think investors may misunderstand about your business?

Investors understand our existing business quite well as the current businesses are stable and I believe that they are more interested in our future projects especially the bioplastics. The new technology will not only drive our growth but help the domestic economy as Thailand expands from being a pure agriculturally based economy to combined agricultural knowledge with modern technology.

This will help the farmers and uplift the industries in Thailand with research and development of technologies. This will lead to smart farming in the future. Currently the farming season can be volatile, and the Government's aim is for Thailand to become the bio-hub of ASEAN by 2027 and GGC is one of the key participants in this goal.

TET: What are the biggest challenges facing your business and industry?

During different periods there are different challenges that appear for the business and industry. In the past there were issues with the demand and supply of CPO, and this was then mitigated when the government changed the mandate from B7 to B10 which reduced the excess supply of CPO and solved a major issue for the country.

Currently Thailand is implementing the same regulations as Malaysia and Indonesia, both countries have faced critical problems as they export tremendous amounts to Europe and Europe has announced that Methyl Esther (ME) from both countries will be totally banned by EU community due to environmental concern by 2030.

CPO from Indonesia and Malaysia represent more than 80% of the world production of crude palm oil. Indonesia and Malaysia produce palm oil approximately 40 and 20 million tonnes per year, respectively, and Thailand only produces 3 million tonnes per year. In January 2020 these two countries changed their blending rates, Indonesia increased from B20 to B30 and Malaysia from B10 to B20. Every country will have to solve their own issues.

For Thailand the balance between demand and supply is appropriated and the country can ensure that there is a suitable portion of excess supply as inventory for the country usage. However, if the country shifts to B20 too quickly as a mandate, it will create significant problem as demand will exceed supply. Indonesia and Malaysia both are more efficient in their CPO production, with higher yields leading to low costs and a lower selling price than Thailand. Thus, Thailand has to develop farming process and technology to improve CPO yield.

TET: Where do you see GGC in five years from now?

Our aim is to be competitive and promote sustainable growth through bio-related industries. With the investments and initiatives taken today, GGC's business portfolio will cover biofuels, biochemicals and bioplastics. This support GGC to become globally competitive in five years as a modern leading Green Chemical Business.

About The Executive Q&A Series

The Executive Q&A Series is presented by ShareInvestor, Asia's leading financial internet media and technology company and the largest investor relations network in the region. The interview was conducted by Pon Van Compernolle. For more information, email admin.th@shareinvestor.com. Website: www.ShareInvestorThailand.com

Copyright 2020 ACN Newswire. All rights reserved. http://www.acnnewswire.com

SDK Group to produce SPALF Packaging Material for large-scale LIBs

TOKYO, Mar 23, 2020 – (ACN Newswire) – Showa Denko Packaging Co., Ltd. (SPA), a consolidated subsidiary of Showa Denko K.K. (SDK; TSE: 4004), has developed a new product for its SPALF(TM) line of aluminum laminate films for packaging small-scale pouch type lithium-ion batteries (LIBs), and will install equipment to mass produce the new product, for large-scale LIBs and use in electric vehicles (EVs). The new production facility is scheduled for operation in March 2021.

SPALF is a laminated composite film consisting of resins and aluminum foil, mainly used as packaging material for small-scale pouch type LIBs. SPALF enjoys a large global market share due to its superb insulation qualities and plasticity. It is more flexible for molding, more lightweight, and with better heat radiation characteristics than metal, so used as casing for small LIBs in devices such as smartphones and tablets. Recognized for its high quality with safety evaluations progressing, it is increasingly used in large-scale LIB applications, such as EVs. As the EV market is developing in China, following Europe, the Showa Denko Group has decided to install facilities to mass produce SPALF for large-scale LIBs.

The Showa Denko Group's Vision is of becoming a KOSEIHA Company, a group of KOSEIHA Businesses that can maintain profitability and stability at high levels over a long period. The global demand for LIBs (in electrical applications) is expected to increase 30% a year until 2025. The Showa Denko Group produces and sells various LIB materials with distinguishing advantages, such as SPALF(TM), VGCF(TM) additives for anode/cathode materials, and POLYSOL(TM) aqueous binding resin. By increasing sales of these LIB materials, the Group aims to contribute to the growth of the LIB market and the improvement of LIB functionality, and make the Group's LIB materials business grow to become a KOSEIHA Business in the field of advanced battery materials.

About Showa Denko K.K.

Showa Denko K.K. (SDK; TSE:4004, ADR:SHWDY), a major manufacturer of chemical products serving heavy industry to electronics and computers. The Petrochemicals Sector provides cracker products such as ethylene and propylene, the Chemicals Sector provides industrial, high-performance and high-purity gases and chemicals for semicon and other industries, the Inorganics Sector provides ceramic products, such as alumina, abrasives, refractory/ graphite electrodes and fine carbon products. The Aluminum Sector provides aluminum materials and high-value-added fabricated aluminum, the Electronics Sector provides HD media, compound semiconductors such as ultra high-bright LEDs and rare earth magnetic alloys, the Advanced Battery Materials Department (ABM) provides lithium-ion battery components. For more information, please visit http://www.sdk.co.jp/english/.

Contact:
Showa Denko K.K., Public Relations Office, Tel: 81-3-5470-3235

Showa Denko Group to Mass-produce SPALF Packaging Materials for Large Onboard LIBs

TOKYO, Mar 18, 2020 – (ACN Newswire) – Showa Denko Packaging Co., Ltd. (SPA), a consolidated subsidiary of Showa Denko K.K. (SDK; TSE:4004), has developed a new product to be added to the lineup of SPALF(TM) aluminum laminate films which are used as packaging material for pouch-type lithium-ion batteries (LIBs), and will install equipment to mass-produce the new product. This new product is specialized for large-sized LIBs, which are mainly used for cars. Operation of the new production equipment is scheduled to be started in March, 2021.

SPALF is laminated composite film consisting of resin films and aluminum foil, and is mainly used as packaging material for pouch-type LIBs. SPALF has a large global market share due to its excellent insulation performance and superb plasticity. Pouch-type LIBs have outstanding flexibility in shaping, and are used in many kinds of small devices including smartphones and tablets. Moreover, they are widely used in large-sized equipment including EVs because pouch-type LIBs' high quality has been widely recognized and there has been considerable progress in verification of pouch-type LIBs' safety. Since development of EVs is in progress not only in China but also in Europe and the demand for pouch-type LIBs has been increasing, this time the Showa Denko Group has developed a new type of SPALF for large-sized LIBs and decided to install equipment to mass-produce the new product.

The Showa Denko Group's Vision is to make itself a "KOSEIHA Company" (a group of KOSEIHA Businesses that can maintain profitability and stability at high levels over a long period). The global demand for LIBs (in electrical capacitance) is expected to increase 30% a year until 2025. The Showa Denko Group produces and sells various LIB materials with distinguishing advantages, such as SPALF(TM), VGCF(TM) additives for anode/cathode materials, and POLYSOL(TM) aqueous binding resin. By increasing sales of these LIB materials, the Group will aim to contribute to the growth of LIB market and improvement in functions of LIBs, and make the Group's LIB materials business grow to be established as a KOSEIHA Business in the field of advanced battery materials.

About Showa Denko K.K.

Showa Denko K.K. (SDK; TSE:4004, ADR:SHWDY), a major manufacturer of chemical products, serves a wide range of fields from heavy industry to electronics and computer industries. The Petrochemicals Sector provides cracker products such as ethylene and propylene, the Chemicals Sector provides industrial, high-performance and high-purity gases and chemicals for semicon and other industries, and the Inorganics Sector provides ceramic products, such as alumina, abrasives, refractory and graphite electrodes and fine carbon products. The Aluminum Sector provides aluminum materials and high-value-added fabricated aluminum, the Electronics Sector provides HD media, compound semiconductors such as ultra high-bright LEDs and rare earth magnetic alloys, and the Advanced Battery Materials Department (ABM) provides lithium-ion battery components. For more information, please visit http://www.sdk.co.jp/english/.

Contact:
Showa Denko K.K., Public Relations Office, Tel: 81-3-5470-3235

SDK Starts Labor-Management Consultations about Realignment of Graphite Electrode Production Sites in Europe

TOKYO, Feb 5, 2020 – (ACN Newswire) – Showa Denko (SDK; TSE:4004) announces that labor-management consultations have started concerning planned closure of a production site in Meitingen, Germany, under the jurisdiction of consolidated subsidiaries SHOWA DENKO CARBON Products Germany GmbH & Co. KG and SHOWA DENKO CARBON Germany GmbH.

The Meitingen site is currently producing connecting pins* for graphite electrodes. When the site is closed, the Showa Denko Group's connecting pin production will be concentrated at Omachi Plant in Japan. The Group has the leading share in the global ultrahigh power (UHP) graphite electrode market. However, electric steelmakers are continuing to adjust their inventory of graphite electrodes since the second half of 2019. Thus, our operating rates have fallen in the European market, where economic slowdown is noticeable. When production at Meitingen is stopped, the Showa Denko Group's global graphite electrode production capacity will decrease by 40,000 t/y, to 210,000 t/y.

In addition, labor-management consultations have started at SHOWA DENKO CARBON Austria GmbH's Steeg site concerning temporary idling for a limited period of time. These two actions will result in a rebalancing of capacity in Europe in line with projected graphite electrode demand.

The Showa Denko Group's Vision is to make itself a "KOSEIHA Company" (a group of KOSEIHA Businesses that can maintain profitability and stability at high levels over a long period). The graphite electrode business is one of such KOSEIHA Businesses. SDK will continue taking various measures to achieve "Value in Use No. 1" for customers and to further increase competitiveness and profitability.

Note: *A connecting pin is used for connecting rods of graphite electrodes.

About Showa Denko K.K.

Showa Denko K.K. (SDK; TSE:4004, ADR:SHWDY), a major manufacturer of chemical products, serves a wide range of fields from heavy industry to electronics and computer industries. The Petrochemicals Sector provides cracker products such as ethylene and propylene, the Chemicals Sector provides industrial, high-performance and high-purity gases and chemicals for semicon and other industries, and the Inorganics Sector provides ceramic products, such as alumina, abrasives, refractory and graphite electrodes and fine carbon products. The Aluminum Sector provides aluminum materials and high-value-added fabricated aluminum, the Electronics Sector provides HD media, compound semiconductors such as ultra high-bright LEDs and rare earth magnetic alloys, and the Advanced Battery Materials Department (ABM) provides lithium-ion battery components. For more information, please visit http://www.sdk.co.jp/english/.

Contact:
Showa Denko K.K., Public Relations Office, Tel: 81-3-5470-3235