Hanwa Co., Ltd. · TSE:8078
Hanwa — Q3 FY2023 Earnings Presentation
18 slides from Hanwa's earnings presentation, February 2024
Slide 1: Outline of Financial Results for the 3rd Quarter of FY2023
Outline of Financial Results for the 3 rd Quarter of FY2023 February 2024 HANWA CO., LTD. Copyright© 2024 Hanwa Co., Ltd. All Rights Reserved
Slide 2: Summary of Financial Results
Summary of Financial Results Copyright© 2024 Hanwa Co., Ltd. All Rights Reserved 1
Slide 3: Summary of Financial Results for the 3rd Quarter of FY2023
Summary of Financial Results for the 3 rd Quarter of FY2023 ◼ Ordinary income for the 3 rd quarter of FY2023 was 42.9 billion yen, making 86% progress toward the full-year forecasts of 50 billion yen. The Full-year Forecasts remain unchanged. FY2022 FY2023 Y on Y FY2023 (billions of yen) Progress Q1
Slide 4: Segment Information (Consolidated)
Segment Information（Consolidated） (billions of yen) FY2022 FY2023 Y on Y Business Segments Main Factors Income by Segment Q1-3 Q1-3 Change(Rate) -2.6 Margins shrunk mainly at overseas steel service center 63.6 Steel 25.5 22.9 (-10%) subsidiaries due to falling steel product prices. -9.6 Due to falli
Slide 5: Segment Income Progress
Segment Income Progress (billions of yen) Business FY2023 FY2023 Progress Main Factors Segment Forecast Q1-3 Despite falling market prices for steel products, income increased due to Steel 29.0 22.9 79% the impact of exchange rates. SAMANCOR's performance exceeded forecasts as of the biginning of th
Slide 6: Impacts of Profits/Losses from Market Value Accounting and Temporary Factors
Impacts of Profits/Losses from Market Value Accounting and Temporary Factors ◼ The reported ordinary income was 42.9 billion yen but can be translated into about 47.0 billion yen after excluding one-time factors such as period-end valuation gains and losses. (billions of yen) Inventory Derivative Ot
Slide 7: Financial Position (Consolidated)
Financial Position (Consolidated) (billions of yen) Change Mar. 2023 Dec. 2023 Main Factors （Rate） -5.0 Total Assets 1,157.7 1,152.6 Decrease in cash and deposits and inventories. (-0%) +25.7 Shareholder's Equity 270.8 296.5 (+10%) +34.6 Owner's Equity 303.1 337.7 Accumulation of retained earnings,
Slide 8: Reducing Strategic Shareholdings
Reducing Strategic Shareholdings We achieved our target of having strategic shareholdings represent less than 20% of net assets ahead of schedule, as of the end of December. The sale of them has progressed as planned, although the remaining balance of the strategic shareholdings has increased due to
Slide 9: Details by Segment
Details by Segment Copyright© 2024 Hanwa Co., Ltd. All Rights Reserved 8
Slide 10: Steel Business Segment
Steel Business Segment Segment income decreased as profit margins shrunk at some overseas steel service center subsidiaries due to declining steel product prices. （thousand tons） FY2022 FY2023 Y on Y Change Transaction Volume（Consolidated） Long Flat Ferrous raw materials Others (billions of yen) Q1-
Slide 11: Primary Metal Business Segment
Primary Metal Business Segment Segment income decreased due to falls in dividend income from strategic investments and equity in earnings of affiliates from SAMANCOR CHROME HOLDINGS PROPRIETARY LTD. （thousand tons） FY2022 FY2023 Y on Y Change Transaction Volume（Unconsolidated） Nickel Stainless base
Slide 12: Metal Recycling Business Segment
Metal Recycling Business Segment International prices of base metals have declined year-on-year. The demand and transaction volume, especially for stainless scrap, has also decreased. Additionally, a decrease in appraisal gain from commodity forward contracts in hedge transactions has depressed segm
Slide 13: Foods Business Segment
Foods Business Segment Crab market prices have been on a gradual recovery trend, and the increase in the cost of salmon, prawns and chicken started to be sufficiently reflected in the selling prices. （thousand tons） Transaction Volume（Unconsolidated） FY2022 FY2023 Y on Y Change Prawns & Shrimp Crab
Slide 14: Energy & Living Materials Business Segment
Energy & Living Materials Business Segment Although the transaction volume of the products such as palm kernel shells (PKS) and wood pellets has increased, the impact of lower petroleum product prices was significant, pushing down the segment income. （thousand tons） FY2022 FY2023 Y on Y Change Trans
Slide 15: Overseas Sales Subsidiaries Segment
Overseas Sales Subsidiaries Segment Transaction volumes of sales subsidiaries, mainly in Indonesia and the U.S. decreased due to sluggish demand for steels in overseas markets. In addition, the decreases in market prices of steel products and non-ferrous metal products put pressure on the profit mar
Slide 16: Other Segments
Other Segments Wood：Product prices remain sluggish due to the rebound from the wood shock. Machinery ：Several large-scale projects have been completed. （billions of yen） FY2022 FY2023 Y on Y Change Breakdown of Other Segment Income (billions of yen) Q1-3 Q1-3 （Y on Y Rate） Wood Machinery Others -23.
Slide 17: Actual Ordinary Income by Segment
Actual Ordinary Income by Segment (billions of yen) Accounting Valuation and Temporary Items Actual Segments Net Sales Ordinary Foreign Ordinary Income Inventory Derivetive Other One-time Income Exchange Valuation Valuation Factors Valuation Steel 939.9 22.9 0.0 ー 1.6 0.4 20.8 Primary Metal 159.8 6.
Slide 18: HANWA CO., LTD.
HANWA CO., LTD. This presentation contains forward-looking statements concerning future results, performance and achievements that are subject to risk and uncertainties and reflect management’s views and assumptions formed by available information. Consequently, due to a range of possible factors, a