Dowa Holdings Co., Ltd. · TSE:5714
Dowa — FY2019 Earnings Presentation
30 slides from Dowa's earnings presentation, May 27, 2020
Slide 1: Business Results and Progress of Key Measures
Business Results and Progress of Key Measures FY2019 (FY Ended March 2020) May 27, 2020
Slide 2: Results for FY2019 (1) Overview of Results
Results for FY2019 (1) Overview of Results Billion yen (Amounts less than 100 million yen are omitted.) FY2018 FY2019 Changes Latest Results Results Year-on-Year From Latest Forecasts Forecasts A C （C - A） （C - B） B Net Sales 452.9 480.0 485.1 32.2 7% 5.1 1% Operating Income 18.6 24.5 25.9 7.2 39% 1
Slide 3: Results for FY2019 (2) Factor Analysis of Ordinary Income
Results for FY2019 (2) Factor Analysis of Ordinary Income Billion yen FY2018 24.3 Main factors for change Equity method - Profit slide recorded by equity-method affiliates in the Nonferrous income or loss (1.8 ) Metals segment, including those running overseas mines Depreciation in - Investment for
Slide 4: Outlook for FY2020 (1) Results Forecast and Dividend Forecast
Outlook for FY2020 (1) Results Forecast and Dividend Forecast The spread of the Novel coronavirus (COVID-19) has started to affect the Group’s business performance, and uncertainty is growing at the present in regard to demand. In this situation, it is difficult to reasonably calculate financial res
Slide 5: Outlook for FY2020 (2) Current State of Operation
Outlook for FY2020 (2) Current State of Operation as of May 26, 2020 The Group’s sites: ● Environmental Management & Recycling ● Nonferrous Metals ● Metal Processing ● Heat Treatment ● Corporate [Germany, Czech Republic] [U.S.A., Canada] Operation continued with infection Operation continued with in
Slide 6: Outlook for FY2020 (3) Demands Trends
Outlook for FY2020 (3) Demands Trends ❚ Environmental Management & Recycling - The amount of industrial/hazardous waste and recycling materials collected may gradually decrease if the stagnation of economic and production activities lasts long in Japan and Southeast Asia. ❚ Nonferrous Metals - Metal
Slide 7: Outlook for FY2020 (4) Demands Trends
Outlook for FY2020 (4) Demands Trends ❚ Metal Processing - Demand for copper rolled products and electroplating will slide year on year as automobile manufacturers reduce production or suspend operations. - Demand will not be severely affected for copper rolled products for smartphones and for metal
Slide 8: Progress in Financial Performance
Review of Midterm Plan 2020 Progress in Financial Performance 8
Slide 9: Financial Review (1) Ordinary Income, ROA/ROE
Financial Review (1) Ordinary Income, ROA/ROE Ordinary Income ROA/ROE Billion yen (%) 60 Environmental Nonferrous Metals Electronics 13 Management & Materials ROA ROE 12 or more Recycling 50.0 12 50 Metal Processing Heat Other/ Treatment Elimination 10.8 10.0 11 10 or more 40 36.3 10 5.7 28.9 15.0 9
Slide 10: Financial Review (2) Investment, R&D Expenses
Financial Review (2) Investment, R&D Expenses Investment R&D Expenses Billion yen Billion yen 120 110.0 20.0 20 100 91.9 80 15 12.6 42.6 60 49.3 10 6.3 40 6.3 5 20 0 0 FY2018 FY2019 Midterm plan FY2018 FY2019 Midterm plan (2 years) 2020 (2 years) 2020 (3 years) (3 years) Investment and R&D expenses
Slide 11: Progress in Each Segment
Review of Midterm Plan 2020 Progress in Each Segment 11
Slide 12: Environmental Management & Recycling (1) Business Overview
Environmental Management & Recycling (1) Business Overview (review of FY2019) Changes in business environment (from the Midterm Plan) - Domestic Waste [Incineration] While treatment volume decreased slightly, the treatment unit price rose mildly. [Melting and recycling] The treatment volume was in l
Slide 13: Environmental Management & Recycling (2) Progress of Key Measures
Environmental Management & Recycling (2) Progress of Key Measures in Midterm Plan Acquire permission to increase capacity at a site in Tochigi Expand melting/recycling Launch a site in Fukushima waste business Construct material pretreatment facilities Construct a new landfill site at Hanaoka Constr
Slide 14: Environmental Management & Recycling (3) Business Development in Japan
Environmental Management & Recycling (3) Business Development in Japan ❚ Waste treatment, automobile recycling and Trends in the Group’s treatment volumes home electrical appliance recycling (FY2017 = 100) FY2017 FY2018 FY2019 The amount of waste recycling in Japan is on the rise after China toughen
Slide 15: Environmental Management & Recycling (4) Indonesia, New Business
Environmental Management & Recycling (4) Business Expansion in Indonesia, New Business Development ❚ Business expansion in Indonesia - Incinerator: Construction commenced towards the start of operation in FY2021 - Second landfill facility: Environmental impact assessment finished, and construction w
Slide 16: Nonferrous Metals (1) Business Overview
Nonferrous Metals (1) 環境・リサイクル① Business Overview (review of FY2019) Changes of Business Environment (against Midterm plan) - Demand for metals: Demand for copper was as predicted in the Midterm plan 2020 while that for zinc declined. - Metal prices: Decreasing for base metals, and soaring for preci
Slide 17: Nonferrous Metals (2) Progress of Major Actions
Nonferrous Metals (2) The Progress of Major Actions on Midterm plan Increase Reduce loss of tin slag and increase the recovery production of tin by Kosaka Smelting Capital investment for & Refining high purity tin Increase collection Increase the collection volume from outside Japan of PGMs material
Slide 18: Nonferrous Metals (3) Business Development
Nonferrous Metals (3) Business Development ❚ Advantage of the recycling and smelting complex The recycling and smelting complex Combining multiple processes to recover around 20 Recycling concentrates used catalysts material different valuable metals, including precious metals at high efficiency KOS
Slide 19: Nonferrous Metals (4) Circumstances Surrounding the Zinc Business
Nonferrous Metals (4) Changes in Circumstances Surrounding the Zinc Business ❚ Changes in zinc market Percentage of procurement from own mines in zinc smelting ore ratio Demand for zinc metal contracted and the metal (ore raw materials) price dropped. 100 Purchase conditions for raw materials are ex
Slide 20: Electronics Materials (1) Business Overview
Electronics Materials (1) Business Overview (review of FY2019) Changes in business environment (from the Midterm Plan) - LED [Smartphones] The product life cycle of LEDs for proximity sensors ended and the development of the market for LEDs for freshness sensors is delayed. [Wearable devices] Mounti
Slide 21: Electronics Materials (2) Progress of Key Measures
Electronics Materials (2) Progress of Key Measures in Midterm Plan Nano-Silver Powder Develop applications and build facilities for mass production Increase line of conductive materials Conductive Atomized Powder Develop applications and build facilities for mass production Complete Develop and mass
Slide 22: Electronics Materials (3) Progress of New Products (1)
Electronics Materials (3) Progress of New Products (1) ❚ Fuel Cell Materials Demand for fuel cells for emergency power supplies is expected to grow due to overseas policies encouraging the introduction of new energy. -> Continue the sales expansion of materials for positive electrode. ❚ Nano-Silver
Slide 23: Electronics Materials (4) Progress of New Products (2)
Electronics Materials (4) Progress of New Products (2) Wavelength 400 750 1,000 ❚ Short-Wavelength-Infrared LEDs (nm) Classification Visible Light NIR SWIR - In the healthcare market, demand is rising for optical of light Wavelength of existing products sensors for measuring moisture, glucose and ot
Slide 24: Metal Processing (1) Business Overview
Metal Processing (1) Business Overview (review of FY2019) Changes in business environment (from the Midterm Plan) - Automotive components: The U.S.-China trade dispute triggered a global slowdown in automobile sales. Following the expansion of the environmental vehicle market, demand for power modul
Slide 25: Metal Processing (2) Progress of Key Measures
Metal Processing (2) Progress of Key Measures in Midterm Plan Copper alloys; Increase Invest in melting/casting and rolling facilities for increasing production production capacity and develop new surface treatment Develop new plating technologies methods Bring new slitter facilities into operation
Slide 26: Metal Processing (3) Actions for Medium- and Long-Term Market Growth
Metal Processing (3) Actions in View of Medium- and Long-Term Market Growth ❚ Copper alloy strips Japan: Continue to invest for increasing production of high-performance copper alloy to boost production capacity by 20% from the FY2017 level. China: Expand local processing and delivery sites to captu
Slide 27: Heat Treatment (1) Business Overview
Heat Treatment (1) Business Overview (review of FY2019) Changes in business environment (from the Midterm Plan) - Automobile production has been declining since the late of 2018. Customers’ overseas production and local procurement are delayed. - Slowdown is remarkable in overseas regions where busi
Slide 28: Heat Treatment (2) Progress of Key Measures
Heat Treatment (2) Progress of Key Measures in Midterm Plan U.S.A. Strengthen the heat treatment process China Strengthen treatment capacity in overseas which Strengthen the heat treatment process Make investment appropriate increasing demand to demand India Gain orders for next- Bring two new facto
Slide 29: Heat Treatment (3) Actions for Boosting Business Competitiveness
Heat Treatment (3) Actions for Boosting Business Competitiveness ❚ Response to overseas demand for local procurement - Automotive component manufacturers maintain plans to increase production in China and in U.S.A. -> Support facilities at overseas sites in line with the pace of expansion of demand
Slide 30: Forward-looking statements
* Forward-looking statements made in this document, such as business forecast, are based on the information available at this time and on certain premises that the Company assumes to be reasonable. Actual performance may differ materially from such forecasts due to a variety of factors. 30