Hanwa Co., Ltd. · TSE:8078
Hanwa — FY2011 Earnings Presentation
27 slides from Hanwa's earnings presentation, May 17, 2012
Slide 1: Financial Results for the Fiscal Year ended March 31, 2012
FINANCIAL RESULTS for the Fiscal Year ended March 31, 2012 May 17, 2012 HANWA CO., LTD. Copyright 2012 Hanwa Co., Ltd. All Rights Reserved 1
Slide 2: Overviews of Financial Results
Overviews of Financial Results • Net sales Net sales amounted 1,564.2 billion yen, increased by 12%, thanks to steady business result from steel and petroleum/chemical segments. • Net income Although operating income have increased, thanks to increase profit in petroleum/chemical and machinery busin
Slide 3: Operating Results (consolidated)
Operating Results ( consolidated ) （Millions of yen） Rate of ・Increased sales amount by FY2011 FY2010 changes 12.0%: Our business in steel and petroleum/chemical Net sales 1,564,250 1,396,103 +12.0% segments showed steady progress after economic Gross profit 46,346 43,744 +5.9% stagnation caused by
Slide 4: Changes in Business results (consolidated)
Changes in Business results （ consolidated ） Net sales （100 millions of yen） Despite expectations for sluggish 20,000 Year ended demand because of catastrophes like the Interim period 15,642 16,000 15,000 13,961 Great East Japan Earthquake and 11,166 flooding in Thailand, there was no （forecast） 10,
Slide 5: Financial Position (consolidated)
Financial Position ( consolidated ) （Millions of yen） Rate of ・Total assets increased by FY2011 FY2010 change 9.3% from end of the previous fiscal year, due to increase in Total assets 582,404 532,797 +9.3% trade receivables and inventories. Current assets 467,982 423,204 +10.6% ・Interest-bearing de
Slide 6: Cash Flows Situation (consolidated)
Cash Flows Situation ( consolidated ) （Millions of yen） Net cash provided in operation was 11.9 FY2011 FY2010 change billion yen due to slowed down in needs of working capital. Cash flows from 11,970 (46,948) +58,918 Operating activities Net cash used in investment was 12.0 Cash flows from billion y
Slide 7: Segment Information (consolidated)
Segment Information ( consolidated ) Net sales Segment income （Millions of yen） Rate of Rate of FY2011 FY2010 FY2011 FY2010 change change Steel 745,031 693,048 +7.5% Steel 9,349 9,422 -0.8% Metal & alloys 126,279 124,036 +1.8% Metal & alloys 1,286 2,265 -43.2% Non-ferrous Non-ferrous metals 62,054 6
Slide 8: Steel Business Segment
Steel Business Segment （Millions of yen） Net sales Segment income Profit ratio FY2011 745,031 9,349 1.3% FY2010 693,048 9,422 1.4% Demand has rebounded, mainly in the manufacturing sector, from the devastation of the earthquake in Japan and flooding in Thailand. Furthermore, construction demand for
Slide 9: Transaction volume in Steel Segment (unconsolidated)
Transaction volume in Steel Segment (unconsolidated) There were concerns about a downturn in transaction volume caused by the economic impact of the earthquake in Japan and by flooding in Thailand. But there was a 7% increase in volume over the previous year as manufacturing activity quickly rebound
Slide 10: Market Trend of Long Products
Market Trend of Long Products Lackluster demand caused by the effects of the earthquake caused an increase in inventories along with a decrease in prices. There were several signs of a rebound as the price of steel scrap increased. However, a rebound could not be sustained because of weak volume in
Slide 11: Market Trend of Flat Products
Market Trend of Flat Products Inventories increased as capacity utilization rates fell at manufacturers because of the earthquake. Inventories remained high even after the recovery in factory operations due to the slow pace of reductions. Open market prices were also soft because of slumping demand
Slide 12: Market Trend of Steel Raw Materials
Market Trend of Steel Raw Materials The price of iron ore imported by China was high at first. But the price fell sharply starting in September mainly because of monetary tightening and a weakening prices of steel products in China. Although the price is currently recovering, the rebound is weak bec
Slide 13: Coking coal price
The price of coking coal surged following 【Coking coal price】 floods in Australia in the spring of 2011 but subsequently declined because of weak 350 Coking coal (US$：/FOB Australia) demand and financial restrictions. 300 Contractual prices with mining companies 250 are decreasing slowly in the curr
Slide 14: Markets Trend of Steel Scrap
Markets Trend of Steel Scrap Although there was not a large derived volume of steel scrap, prices were held down by the low level of demand among traders in Japan and overseas. Prices fell even more late in 2011 along with a further downturn in demand but then increased slowly owing to expectations
Slide 15: Steel Market Trend in China
Steel Market Trend in China Following tighter financial regulations to control inflation, the price of steel products was weak due to a decline in housing demand and other factors. But crude steel output remains high and there are concerns that this steel will be sold on the export market. 【Transiti
Slide 16: Metals & Alloys Business Segment
Metals & Alloys Business Segment （Millions of yen） Net sales Segment income Profit ratio FY2011 126,279 1,286 1.0% FY2010 124,036 2,265 1.8% Demand for raw materials was sluggish because of the prolonged production decline at stainless steel makers and EAF steelmakers as well as the lower operating
Slide 17: Market Trend of Metals & Alloys
Market Trend of Metals & Alloys Prices of nickel, stainless steel scrap and other stainless steel raw materials fell sharply because of lower production caused by weak demand for stainless steel products and because of a change in the financial environment. Prices of ferroalloys were soft but nevert
Slide 18: Non-ferrous Metals Business Segment
Non-ferrous Metals Business Segment （Millions of yen） Net sales Segment income Profit ratio FY2011 62,054 851 1.4% FY2010 60,026 715 1.2% The earthquake and flooding in Thailand impacted demand for non-ferrous metals in Japan. However, the transaction volume was high because of a rapid recovery in d
Slide 19: Markets Trend of Non-ferrous Metals
Markets Trend of Non-ferrous Metals Growing financial instability in Europe brought down LME prices. Although prices have recovered as concerns about instability eased, prices are once again decreasing because the outlook is once again uncertain. 3,000 11,000 Al Zn 10,000 Pb 2,500 Cr 9,000 Al,An,Pb(
Slide 20: Foods Business Segment
Foods Business Segment （Millions of yen） Net sales Segment income Profit ratio FY2011 91,709 1,180 1.3% FY2010 80,067 1,777 2.2% Prices in Japan remained high mainly because of strong overseas markets, low inventories and the decline in fishery production in areas affected by the earthquake. But a c
Slide 21: Market Trend of Frozen Marine Products
Market Trend of Frozen Marine Products The price of farmed salmon increased rapidly but then plunged because of an over- supply. The price of shrimp is weak as well because of lackluster demand in the United States. A market adjustment from high prices has started in some categories. In other catego
Slide 22: Petroleum & Chemicals Business Segment
Petroleum & Chemicals Business Segment （Millions of yen） Net sales Segment income Profit ratio FY2011 457,578 2,671 0.6% FY2010 370,036 2,197 0.6% Although demand for petroleum products was sluggish overall because of the economic impact of the earthquake, our transaction volume was solid, mainly fo
Slide 23: Market Trend of Crude Oil & Petroleum Products
Market Trend of Crude Oil & Petroleum Products The price of crude oil has been volatile with changes in the financial environment and the U.S. economy but then slowly increased because of events in the Middle East. Prices of petroleum products rose rapidly after the earthquake and then settled down
Slide 24: Our Basic Management Policy
Our Basic Management Policy “Resonance with our business partners” Our goal is to manage operations for even greater solidarity with customers by being a “user-oriented trading company” that has deep ties with users while reinforcing alliances around us and beyond. “Quick deliveries - Small volume -
Slide 25: Progress of Business Strategy
Progress of Business Strategy 【Strengthening of Domestic Business】 Expansion of domestic bases Establishment of Atsugi branch, Mito branch and Hachinohe office (Apr-2011) Establishment of Shizuoka branch (Oct-2011) Establishment of Okayama branch (Apr-2012) Opening of Hanwa Logistics Sakai and Hanwa
Slide 26: Business Forecast FY2012 (year ending March 31, 2013)
Business Forecast FY2012 ( year ending March 31, 2013) The economic outlook is still uncertain in both Europe and China. In Japan, there are strong concerns like the shortage and high cost of electricity, the yen’s strength against the U.S. dollar and the slow emergence of earthquake reconstruction
Slide 27: A Cautionary Note on Forward-looking Statement
A Cautionary Note on Forward-looking Statement 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