Resonac (4004) Q4 2024 earnings summary

Executive summary

• Achieved significant year-on-year growth in sales and profit, led by the Semiconductor and Electronic Materials segment, with a focus on AI-related demand and aggressive investment in semiconductor materials.

• Financial indicators and capital structure improved over the past three years, supported by portfolio reform, co-creative innovation, and corporate culture transformation.

• Sustainability efforts target carbon neutrality and a recycling-oriented society through technological development and industry collaboration.

• All segments except Mobility saw operating income growth; Mobility faced sluggish demand in Thailand but benefited from EV-related sales.

• Dividend per share maintained at ¥65.00, with net assets per share increasing to ¥3,494.12.

Financial highlights

• Net sales reached ¥1,389.3 billion in 2024, up 7.8% year-on-year; operating income was ¥78.7 billion, reversing a prior-year loss.

• Net income attributable to owners was ¥55.4 billion, up ¥74.4 billion year-on-year; EBITDA margin rose to 13.7%.

• EPS improved from ¥(104.65) to ¥306.59; cash dividend planned at ¥65 per share.

• Free cash flow more than doubled to ¥113.7 billion, and cash and cash equivalents at year-end rose to ¥295.4 billion.

• Extraordinary profit and loss improved by ¥8.4 billion, with gains from asset and business sales.

Outlook and guidance

• 2025 forecast: sales revenue of ¥1,422.0 billion, core operating income of ¥98.0 billion (IFRS basis), and net income attributable to owners of ¥26.0 billion.

• EBITDA margin expected at 13.6%–14%; ROIC targeted at 5.7%; basic EPS forecast at ¥144; dividend maintained at ¥65.

• Segment classification will change in 2025, with Mobility segment divested and new reporting for Crasus Chemical.

• Capital expenditures planned at ¥131.4 billion and R&D at ¥47.8 billion for 2025.

• Long-term targets include an EV/EBITDA multiple of 15x, share price of ¥10,000, and market capitalization of ¥2 trillion.