Hanwa Co., Ltd. · TSE:8078
Hanwa — FY2012 Earnings Presentation
26 slides from Hanwa's earnings presentation, May 17, 2013
Slide 1: Financial Results for the Fiscal Year ended March 31, 2013
FINANCIAL RESULTS for the Fiscal Year ended March 31, 2013 May 17, 2013 HANWA CO., LTD. Copyright 2013 Hanwa Co., Ltd. All Rights Reserved 1
Slide 2: Overviews of Financial Results
Overviews of Financial Results • Net sales Compared with the last year, our net sales has decreased by 3.4% and reached 1.511.3 billion yen, due to decline in steel and metal prices. • Net income Ordinary income was down because of lower proceeds caused by a drop in sales prices and a foreign exchan
Slide 3: Operating Results (consolidated)
Operating Results ( consolidated ) （Millions of yen） Rate of FY2012 FY2011 changes ・Net sales amount has decreased by 3.4% from the previous year. Net sales 1,511,324 1,564,250 -3.4％ In Steel, metals/alloys and non- ferrous metals businesses, sales Gross profit 44,762 46,346 -3.4％ prices dropped. SG
Slide 4: Changes in Business results (consolidated)
Changes in Business results （ consolidated ） Net sales （100 millions of yen） The pace of the global economic 20,000 Year ended recovery slowed as the fiscal year began Interim period 15,642 16,000 15,113 15,000 13,961 because of recurring financial instability in Europe and lackluster growth in （for
Slide 5: Financial Position (consolidated)
Financial Position ( consolidated ) （Millions of yen） FY2012 FY2011 Rate of ・Total assets decreased by change 5.1% from end of the previous year, due to decrease in trade Total assets 552,908 582,404 -5.1％ receivables and inventories. Current assets 435,301 467,982 -7.0％ ・Interest-bearing debt decre
Slide 6: Cash Flows Situation (consolidated)
Cash Flows Situation ( consolidated ) （Millions of yen） Net cash provided by operation was 19.3 FY2012 FY2011 change billion yen due to decrease in trade receivables and Cash flows from inventories. 19,380 11,970 +7,410 Operating activities Net cash used in Cash flows from investment was 5.1 (5,106)
Slide 7: Segment Information (consolidated)
Segment Information ( consolidated ) Net sales Segment income （Millions of yen） Rate of Rate of FY2012 FY2011 FY2012 FY2011 change change Steel 718,170 745,031 -3.6% Steel 9,598 9,349 +2.7% Metal & alloys 94,766 126,279 -25.0% Metal & alloys 320 1,286 -75.1% Non-ferrous Non-ferrous metals 73,273 62,
Slide 8: Steel Business Segment
Steel Business Segment （Millions of yen） Net sales Segment income Profit ratio FY2012 718,170 9,598 1.3% FY2011 745,031 9,349 1.3% In the construction sector, full-scale demand associated with earthquake reconstruction projects did not emerge. But demand was underpinned by civil engineering and smal
Slide 9: Transaction volume in Steel Segment (unconsolidated)
Transaction volume in Steel Segment (unconsolidated) Although the operating environment was challenging because of weakness in the spot market and slumping prices overseas, volume increased for both long products and sheets and coils. Steel scrap, included in specialty steel and others, increased, t
Slide 10: Market Trend of Long Products
Market Trend of Long Products At first, inventories increased as output climbed on expectations of earthquake reconstruction demand. But there was no significant rise in demand in the spot market, thus market prices declined steadily until the third quarter. In 2013, business confidence improved due
Slide 11: Market Trend of Flat Products
Market Trend of Flat Products Factory utilization rates were strong, but sluggish spot demand resulted in weak open market prices. Prices stopped falling in the second half because of the higher cost of raw materials and expectations for an economic recovery. But real demand growth has been lacklust
Slide 12: Market Trend of Steel Raw Materials
Market Trend of Steel Raw Materials The price of iron ore imported by China generally declined in the first half because of flat demand for exports to Europe and lower steel prices in China. After the second half, the price increased due to hopes for economic stimulus measures and lower inventories
Slide 13: Coking coal price and contract prices
The price of coking coal decreased until the 【Coking coal price】 middle of the fiscal year as demand was weak in China. The price then increased on 250 hopes for rising demand after the Chinese Coking coal (US$：/FOB Australia) New Year but is now falling again. 200 Contractual prices with mining com
Slide 14: Markets Trend of Steel Scrap
Markets Trend of Steel Scrap Steel scrap prices were soft until the end of 2012 because of the small volume of purchases by Turkey, Korea, China and other countries. In 2013, prices improved as the weaker yen made the cost of Japanese scrap more competitive for exports. Japanese EAF steelmakers rais
Slide 15: Steel Market Trend in China
Steel Market Trend in China Crude steel production remains high even though weak demand is holding prices of steel products down. Prices increased briefly in the second half because of hopes for a recovery in demand following China’s National Day and Chinese New Year. But prices are currently fallin
Slide 16: Metals & Alloys Business Segment
Metals & Alloys Business Segment （Millions of yen） Net sales Segment income Profit ratio FY2012 94,766 320 0.3% FY2011 126,279 1,286 1.0% Production continues to decline because of soft stainless steel demand worldwide. Prices of raw materials are lower as demand falls. The cost of scrap rose as the
Slide 17: Market Trend of Metals & Alloys
Market Trend of Metals & Alloys Prices of nickel, ferroalloys and other stainless steel raw materials were weak as soft stainless steel demand brought down demand for raw materials. Prices rebounded slightly in the second half but are currently weak. 3,000 160 150 (Ni, FeSi, MeSi, Stainless scrap) 2
Slide 18: Non-ferrous Metals Business Segment
Non-ferrous Metals Business Segment （Millions of yen） Net sales Segment income Profit ratio FY2012 73,273 686 0.9% FY2011 62,054 851 1.4% Although the sales volume of base metal scrap increased, earnings were lower because of the drop in global market prices and increased procurement cost due to the
Slide 19: Markets Trend of Non-ferrous Metals
Markets Trend of Non-ferrous Metals Having experienced some volatility in the financial environment, LME prices were generally lower than in the previous fiscal year. Prices started moving up after September due to expectations created by U.S. monetary easing and China’s economic stimulus measures.
Slide 20: Foods Business Segment
Foods Business Segment （Millions of yen） Net sales Segment income Profit ratio FY2012 83,800 747 0.9% FY2011 91,709 1,180 1.3% Demand in Japan was sluggish. There was a sharp drop in the farmed salmon price during the past fiscal year and the decline was continuing in the current fiscal year. This d
Slide 21: Market Trend of Frozen Marine Products
Market Trend of Frozen Marine Products The price of farmed salmon is still declining in the current fiscal year. International shrimp prices were weak too because of the sluggish global economy. But yen’s downturn that started in 2013 has caused prices to increase. 2,500 800 Black-Tiger Salmon House
Slide 22: Petroleum & Chemicals Business Segment
Petroleum & Chemicals Business Segment （Millions of yen） Net sales Segment income Profit ratio FY2012 444,280 1,673 0.4% FY2011 457,578 2,671 0.6% Demand for petroleum products was weak for both industrial and bunker fuel because of economic weakness and a stagnant marine transport. Intense competit
Slide 23: Market Trend of Crude Oil & Petroleum Products
Market Trend of Crude Oil & Petroleum Products The price of crude oil was generally weak, although there was some volatility associated with financial instability in Europe, slowing economic growth in China, high U.S. inventories and other events. Real demand was lackluster too, but prices of petrol
Slide 24: Progress of Business Strategy
Progress of Business Strategy 【Strengthening of Domestic Business】 Expansion of domestic bases Establishment of Okayama branch (Apr-2012) Opening of Hanwa Logistics Sakai and Hanwa Logistics Kyushu (Apr-2012) M&A for strengthening of function Acquisition ownership of Kaneki Co., Ltd. (Aug-2012) Inve
Slide 25: Business Forecast FY2013 (year ending March 31, 2014)
Business Forecast FY2013 ( year ending March 31, 2014) The outlook for the business climate is still unclear because of numerous sources of uncertainty, including the health of the economies of Europe and China. But there are expectations for contributions to demand in Japan from the government’s ec
Slide 26: 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