Hanwa Co., Ltd. · TSE:8078
Hanwa — H1 FY2016 Earnings Presentation
33 slides from Hanwa's earnings presentation, Nov 24, 2016
Slide 1: Interim Results for the Year Ending March 2017
With Users INTERIM RESULTS for the Year Ending March 2017 November 24, 2016 HANWA CO., LTD. Copyright© 2016 Hanwa Co., Ltd. All Rights Reserved 1
Slide 2: Operating Results (consolidated)
Operating Results ( consolidated ) With Users ・Net sales decreased by 9% in the same period of the previous year, due to decline in petroleum and steel product prices . ・SG & A expenses increased by 3% compared with the same period of previous year. 3% out of 3% was accounted for newly consolidated
Slide 3: Changes in Business Results (consolidated)
Changes in Business results （ consolidated ） With Users Sales decreased because of low prices of crude oil and other commodities but the transaction volume remained steady. Net income remained strong after eliminating the one-time contribution to earnings from the sale of a logistics center land in
Slide 4: Ordinary income excluding valuation gains and losses
時価会計・一過性損益の影響 With Users ¥9.9 billion ordinary income can be regarded as ¥10.4 billion before excluding valuation gains and losses for inventories, derivatives and other items, a one-time loss at subsidiaries, and other one-time gains and losses. Ordinary income on the same basis was ¥7.6 billion on
Slide 5: Segment Information (consolidated)
Segment Information ( consolidated ) With Users Lower commodity prices caused sales decrease in all segments. Earnings increased mainly because of higher steel earnings and an improvement in the profitability of the food product segment. Net sales Segment income （billions of yen） 1,000.0 15.0 788.2
Slide 6: Financial Position (consolidated)
Financial Position ( consolidated ) With Users ・Total assets remained on the same level from the end of the previous year. While inventories decreased, cash and deposits increased. ・Interest-bearing debt decreased slightly from the end of the previous year, due to the decrease in long-term loans pay
Slide 7: Cash Flows Situation (consolidated)
Cash Flows Situation ( consolidated ) With Users ・Cash flows from operating activities was 22.0 billion yen, due to decrease in inventories and increase in operating revenue. ・Cash flows from investing activities was -1.3 billion yen, due to purchase of investment securities and execution of long-te
Slide 8: Business Forecast FY2016 (year ending March 31, 2017)
Business Forecast FY2016 ( year ending March 31, 2017) With Users ・Net sales forecast The fiscal year sales forecast has been reduced by ¥100 billion because first half sales were lower than planned due to declines in prices of commodities. ・Profit forecast No revision to the forecast because first
Slide 9: Forecast of Segment Information
Forecast of Segment Information With Users Forecast higher sales in the metals and alloys and food product segments and lower sales in all other segments. Steel earnings were higher in the first half and are expected to remain at this level in the second half. Net sales Segment income （billions of y
Slide 10: Dividend Policy
Dividend Policy With Users 【Dividend Policy】 Our policy is to pay a stable dividend to shareholders while retaining sufficient earnings to strengthen our operations and make investments in growing fields. In addition, our goal is to increase the dividend while taking into consideration our earnings,
Slide 11: Steel Business Segment
Steel Business Segment With Users （billions of yen） ・Net sales Rate of The transaction volume remained steady FY2015/1H FY2016/1H despite no growth in movements of steel change products, but sales were down because of a Net sales 406.3 371.0 －9% decrease in prices. Segment income 6.3 8.5 ＋35% ・Segme
Slide 12: Metals & Alloys Business Segment
Metals & Alloys Business Segment With Users （billions of yen） ・Net sales Rate of Sales decreased because of lower prices of FY2015/1H FY2016/1H change metals and a decline in sales of stainless steel scrap. Net sales 73.9 61.7 －17% ・Segment income Segment income 1.3 (0.1) －% The first half loss was
Slide 13: Non-ferrous Metals Business Segment
Non-ferrous Metals Business Segment With Users （billions of yen） ・Net sales Rate of Sales were down because of the low prices of FY2015/1H FY2016/1H non-ferrous metals and declines in sales of change aluminum and copper scrap. Net sales 45.2 37.1 －18% ・Segment income Segment income 0.5 0.5 ＋0% No ch
Slide 14: Foods Business Segment
Foods Business Segment With Users ・Net sales （billions of yen） Rate of Sales were lower as the volume of sales FY2015/1H FY2016/1H declined due to a continuation of sluggish change sales in Japan and weak demand for shrimp Net sales 47.7 44.7 －6% in the United States. Segment income (0.1) 1.0 ー% ・Se
Slide 15: Petroleum & Chemicals Business Segment
Petroleum & Chemicals Business Segment With Users （billions of yen・ ）Net sales Rate of Prices of petroleum products continued to decline FY2015/1H FY2016/1H and were lower than one year earlier. Sales were change further impacted by lower demand for bunker fuel Net sales 150.0 125.0 －17% caused by t
Slide 16: Overseas Sales Subsidiaries Segment
Overseas Sales Subsidiaries Segment With Users （billions of yen・ ）Net sales Rate of Lower bunker fuel sales in Singapore and the FY2015/1H FY2016/1H negative impact of U.S. anti-dumping change measures on the steel business caused sales to Net sales 100.0 82.6 －17% decrease. Segment income (0.0) 0.0
Slide 17: Other Segment
Other Segment With Users （billions of yen） Higher earnings reflected the completion of Rate of amusement rides in the machinery business FY2015/1H FY2016/1H change and growth in sales of lumber imported Net sales 29.1 39.6 ＋36% from Europe. 《Transaction volume in lumber business》 Segment income 0.5
Slide 18: Progress of Medium-term Business Plan
Progress of Medium-term Business Plan With Users The net debt-equity ratio decreased as debt continued to decline along with the downturn in demand for working capital. Goal is 2,000 new corporate customers over three years; thus far, about 330 new customers have been acquired (1/6 of the goal). Pro
Slide 19: Progress of Medium-term Business Plan
Progress of Medium-term Business Plan With Users The “Three S” Commitment - Steady, Speedy, Strategic - build our sustainable growth. STRATEGIC (billions of yen) Current investment records Equity participation 1.7 (MM METAL, Stainless pipe Kogyo) Equipment investments 1.3 (mainly increase in capacit
Slide 20: Profits of Group Companies
Profits of Group Companies With Users Earnings of group companies are improving slowly. Collective ordinary income of non- consolidated subsidiaries has become positive. 【Ordinary income trend of subsidiaries by business segments】 (millions of yen) FY2015/1H FY2016/1H Increase - Decrease Consolidate
Slide 21: Progress of QSP Business Strategy
Progress of QSP Business Strategy With Users Hanwa continues to implement the fast delivery/small-lot/processing strategy aimed at targeting regional demand and small-volume demand. Acquisitions of small/midsize steel wholesalers and processors with key functions will continue. “SOKOKA” subsidiaries
Slide 22: Investment in Business
Investment in Business With Users Hanwa continues to make substantial business investments during this fiscal year in order to build a base for sustained earnings growth and aim quickly to contribute to earnings. 【Current investment records】 （billions of yen） Business segment Amounts Major investmen
Slide 23: Appendix
With Users Appendix Copyright© 2016 Hanwa Co., Ltd. All Rights Reserved 23
Slide 24: Market Trend of Steel Raw Materials
Market Trend of Steel Raw Materials With Users Iron ore…The long-term decline in the price of iron ore ended following the National People’s Congress in China in March. Futures trading is pushing the price up and the price is moving in tandem with prices of steel within China. Coking coal…Initially
Slide 25: Steel Market Trend in China
Steel Market Trend in China With Users Market price…The price surged after China’s announcement of measures to stimulate demand last March but then fell back because of restrictions on futures. Since then, futures have led prices back up in an environment of high expectations about the outlook. Supp
Slide 26: Markets Trend of Steel Scrap
Markets Trend of Steel Scrap With Users Supply/Demand…Supplies of scrap remained tight due to the small volume of supply and growth in demand for exports. Supply and demand was in balance because of soft demand for rebar. But the rising cost of steelmaking raw materials is increasing the use of stee
Slide 27: Market Trend of Long Products
Market Trend of Long Products With Users Supply/Demand…There was no growth in shipments because of the slow emergence of new construction projects and slow progress at existing projects. Inventories are about 200,000 tons but are currently declining because of lower production and higher demand for
Slide 28: Market Trend of Flat Products
Market Trend of Flat Products With Users Supply/Demand…Weak demand for flat products caused by sluggish demand in Japan and weak exports due to weak economy overseas. Market inventories were high at about 4 million tons. Market price…Steelmakers started raising prices early in the fiscal year in res
Slide 29: Market Trend of Metals & Alloys
Market Trend of Metals & Alloys With Users Nickel…No growth as demand declines and inventories remain high due to soft demand for stainless steel, but the price is moving up in response to mining restrictions in the Philippines. Ferroalloys…The market remained weak following the drop in prices durin
Slide 30: Markets Trend of Non-ferrous Metals
Markets Trend of Non-ferrous Metals With Users Aluminum…The LME price is slowly starting to recover from the previous fiscal year’s downturn. Little progress with production cuts in China, but prices have been supported by a big drop in LME inventories. Copper…Small change in price compared with oth
Slide 31: Market Trend of Frozen Marine Products
Market Trend of Frozen Marine Products With Users Shrimp…Prices are high in SE Asia because of the low shrimp production in this region. Low shrimp inventories are keeping prices firm in Japan. Salmon…Prices are moving up in response to limited inventories caused primarily by the farmed salmon seawe
Slide 32: Market Trend of Crude Oil & Petroleum Products
Market Trend of Crude Oil & Petroleum Products With Users Crude oil…The price of crude oil moved down throughout the previous fiscal year but has been slowly recovering since the start of this fiscal year. The price dropped briefly in response to Brexit, but resumed its recovery after the September
Slide 33: For Users, With Users
With Users For Users, With Users HANWA CO., LTD. This material contains statements (including figures) regarding Hanwa Co., Ltd.(“Hanwa”)’s corporate strategies, objectives, and views of future developments that are forward-looking in nature and are not simply reiterations of historical facts. These