Slide 1: Outline of Financial Results for the Second Quarter ended September 30, 2024
Outline of Financial Results for the Second Quarter ended September 30, 2024 November 2024 HANWA CO., LTD. Copyright© 2024 Hanwa Co., Ltd. All Rights Reserved
Slide 2: Agenda
1. Summary of Financial Results for the 2 nd Quarter FY2024 2. Progress on Medium-Term Business Plan 2025 3. Details by Business Segment Copyright© 2024 Hanwa Co., Ltd. All Rights Reserved 1
Slide 3: 1. Summary of Financial Results for the 2nd Quarter FY2024
1. Summary of Financial Results for the 2nd Quarter FY2024 Copyright© 2024 Hanwa Co., Ltd. All Rights Reserved 2
Slide 4: Summary of Consolidated Financial Results
Summary of Consolidated Financial Results ◼ Ordinary income for the first half of FY2024 was 28.1 bil. yen, 47% of the full-year forecast of 60 bil. yen. ◼ Full-year forecast remains unchanged. FY2023 FY2024 Y on Y FY2024 (billions of yen) Progress H1 H1 change (Rate) Forecast +57.3 Net Sales 1,201.
Slide 5: Segment Information (Consolidated)
Segment Information (Consolidated) （billions of yen） FY2023 FY2024 Y on Y Change Ordinary Income by Segment Business Segment Main Factors H1 H1 (Y on Y Rate) 28.1 +1.1 Despite a decrease in transaction volume of flat products and wire 27.4 Steel 13.0 14.1 rods, profits increased due to the steady pe
Slide 6: Quarterly Ordinary Income by Segment
Quarterly Ordinary Income by Segment （billions of yen） FY2023 FY2024 Business Segment 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Steel 8.2 4.7 9.0 2.3 24.5 7.7 6.4 14.1 Primary Metal 4.0 2.6 -0.2 2.0 8.4 1.1 2.2 3.4 Metal Recycling 1.1 0.1 0.3 0.4 2.1 0.7 0.7 1.4 Foods 0.4 -0.6 1.2 0.2 1.3 0.3 0.4 0.8 Ener
Slide 7: Segment Ordinary Income compared to Forecast
Segment Ordinary Income compared to Forecast （billions of yen） Business FY2024 Forecast FY2024 Progress on Progress on Main Factors Segment H1 H2 Full year H1 Results H1 Full Year While steel prices remained stable, performance remained strong due to robust demand for logistics Steel 12.0 15.0 27.0
Slide 8: Impacts of Market Value Accounting & One-Time Factors On Profits/Losses
Impacts of Market Value Accounting & One-Time Factors On Profits/Losses ◼ Actual ordinary income was 26.3 bil. yen (down 3.3 bil. yen year on year), while accounting ordinary income was 28.1 bil. yen. （In H1 FY2023, actual ordinary income was 29.6 bil. yen, while accounting ordinary income was 27.4
Slide 9: Financial Position (Consolidated)
Financial Position (Consolidated) （billions of yen） Change Mar. 2024 Sep. 2024 Main Factors （Rate） -1.0 Decreased due to factors such as a decrease in Total Assets 1,166.9 1,165.8 accounts receivable and cash and deposits. (-0%) +14.4 Shareholder's Equity 304.2 318.6 (+5%) Increased due to factors s
Slide 10: 2. Progress on Medium-Term Business Plan 2025
2. Progress on Medium-Term Business Plan 2025 Copyright© 2024 Hanwa Co., Ltd. All Rights Reserved 9
Slide 11: Reducing Strategic Shareholdings
Reducing Strategic Shareholdings ◼ Sold shares in 9 companies for a total of 2.17 billion yen in H1 FY2024. ◼ Continues to sell shares in FY2024 to achieve further reduction, improve capital efficiency, and promote asset restructuring. Mar. 2024 Sep. 2024 Ratio of Strategic Shareholdings to the net
Slide 12: Investments Updates H1 FY2024
Investments Updates H1 FY2024 Segments Amount Major Projects Mid-Term Business Plan 2025 H1 FY2024 （Target: Total of 80bil. Yen) Steel 3.3bil. yen Establishment of new factories at overseas coil center subsidiaries 13.8bil. yen Primary Metal 1.9bil. yen Investment in PMB TECHNOLOGY BERHAD (Details o
Slide 13: Major Investment Projects in H1 FY2024 1/2
Major Investment Projects in H1 FY2024 1/2 Investment in an EF Steelmaker in Indonesia Investment in GREEN ESTEEL PTE. LTD. (PT GARUDA YAMATO STEEL) Hanwa Singapore has subscribed for new shares issued by GREEN ESTEEL PTE (ESTEEL). ESTEEL has announced the construction of a PT Hanwa Indonesia has ac
Slide 14: Major Investment Projects in H1 FY2024 2/2
Major Investment Projects in H1 FY2024 2/2 Investment in Incorporation of Acquisition of 100% of Shares in PMB TECHNOLOGY BERHAD Marugo Fukuyama Suisan Co., Ltd. SHINX Corporation into the Group Hanwa acquired 24 million shares in PMB Technology Berhad (PMB), listed on the Main Market of Bursa Hanwa
Slide 15: 3. Details by Business Segment
3. Details by Business Segment Copyright© 2024 Hanwa Co., Ltd. All Rights Reserved 14
Slide 16: Steel Business Segment
Steel Business Segment ・ The decrease in handling volumes of steel products such as flat products and wire rods negatively impacted sales ・ Profits were increased mainly due to the steady performance of the highly profitable domestic construction sector FY2023 FY2024 (billions of yen) 1Q 2Q 3Q 4Q To
Slide 17: Steel Business Segment: Transaction Volume
Steel Business Segment （thousand tons） Trend of Transaction Volume* (Consolidated) Quarterly Changes H1 Total 4,624 2,318 2,306 2,337 2,257 2,181 4,228 307 280 283 2,047 587 244 44 51 38 279 45 212 90 492 46 94 47 1,045 1,068 1,019 952 960 2,113 959 1,919 919 912 983 1,021 1,832 894 828 1,722 1Q 2Q
Slide 18: Primary Metal Business Segment
Primary Metal Business Segment ・ Despite the expansion of overseas transactions, profits declined due to market price declines in various commodities and lower equity method income from SAMANCOR. FY2023 FY2024 (billions of yen) 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Net Sales 53.8 43.3 43.9 46.3 187.4
Slide 19: Primary Metal Business Segment: Transaction Volume
Primary Metal Business Segment （thousand tons） Trend of Transaction Volume (Unconsolidated) H1 Total 1,045 Quarterly Changes 1,778 1,747 943 219 797 804 424 732 723 Others(*) 776 427 117 Iron scrap 285 401 205 349 Manganese 766 Sillicone 401 Chromium 364 321 335 641 168 Stainless 306 10 209 Nickel 5
Slide 20: Metal Recycling Business Segment
Metal Recycling Business Segment ・ Sales increased due to higher volumes of precious metal bullion and aluminum scrap. ・ Profits increased as copper and aluminum market prices remained stable. FY2023 FY2024 (billions of yen) 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Net Sales 45.6 41.6 42.9 50.5 180.8 54.
Slide 21: Metal Recycling Business Segment: Transaction Volume
Metal Recycling Business Segment （thousand tons） Trend of Transaction Volume (Unconsolidated) 87 Quarterly Changes H1 Total 8 146 68 Others 66 15 133 64 61 59 8 11 18 37 7 7 7 50 15 12 26 14 13 15 5 9 4 5 3 9 4 1 15 7 7 7 7 8 15 8 24 25 26 52 24 21 24 46 4 4 5 4 5 5 9 10 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY20
Slide 22: Foods Business Segment
Foods Business Segment ・ While handling volumes were flat, profits increased as food prices, particularly for crab, remained high. FY2023 FY2024 (billions of yen) 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Net Sales 28.7 32.5 36.8 24.7 122.9 29.3 36.5 65.8 Ordinary income 0.4 -0.6 1.2 0.2 1.3 0.3 0.4 0.8 P
Slide 23: Foods Business Segment: Transaction Volume
Foods Business Segment （thousand tons） Trend of Transaction Volume (Unconsolidated) Quarterly Changes H1 Total 53 26 27 26 50 26 7 4 2 23 4 3 1 20 1 5 11 9 5 6 6 2 4 2 4 8 9 3 5 4 4 4 2 6 4 2 7 2 3 4 6 6 11 11 6 5 5 4 1 1 1 1 1 2 0 0 2 2 2 2 2 2 5 5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2023 FY2024 H1 H1 FY2023
Slide 24: Energy & Living Materials Business Segment
Energy & Living Materials Business Segment ・ Significantly higher marine oil-related transaction volumes increased sales. ・ An increase in both the handling volume and unit prices of chemical products also drove up revenue and profits FY2023 FY2024 (billions of yen) 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Tot
Slide 25: Energy & Living Materials Business Segment: Transaction Volume
Energy & Living Materials Business Segment （thousand tons） Trend of Transaction Volume (Unconsolidated) Quarterly Changes Others H1 Total （千t） 1,433 Wood pelet 1,309 2,304 1,298 165 PKS 1,185 161 2,071 111 167 55 Chemical products 106 1,005 282 487 273 218 196 374 50 886 Diesel fuel, Kerosene, Gasol
Slide 26: Overseas Sales Subsidiaries Segment
Overseas Sales Subsidiaries Segment ・ Sales increased due to the expansion of new business in China and the impact of newly consolidated subsidiaries. ・ Profits decreased due to sluggish market conditions for steel products in the Asian market. FY2023 FY2024 (billions of yen) 1Q 2Q 3Q 4Q Total 1Q 2Q
Slide 27: Overseas Sales Subsidiaries Segment: Steel Transaction Volume
Overseas Sales Subsidiaries Segment （thousand tons） Trend of Steel Transaction Volume (Sum of Overseas Sales Subsidiaries) Quarterly Changes H1 Total 779 1,431 30 132 1,261 662 651 598 598 603 211 136 41 101 74 56 348 575 196 394 165 221 227 228 270 343 522 602 295 259 227 265 70 62 95 63 132 120 54
Slide 28: Other Segment
Other Segment Housing Materials: Sales increased but profits decreased due to declining lumber prices, despite expanded transactions with house builders. Machinery: Profits decreased due to fewer large projects completed compared with the previous period. FY2023 FY2024 (billions of yen) 1Q 2Q 3Q 4Q
Slide 29: Actual Ordinary Income by Segment
Actual Ordinary Income by Segment Note: Our analysis of foreign exchange valuations has been improved due to upgrades of our core system. Consequently, we have adjusted the scope of foreign exchange valuations from the second quarter. （billions of yen） Progress against Valuation and Temporary Items
Slide 30: Actual Ordinary Income by Segment (Reference: Q1 FY2024)
Actual Ordinary Income by Segment (Reference: Actual Ordinary Profit for the First Quarter FY2024) Note: Our analysis of foreign exchange valuations has been improved due to upgrades of our core system. Consequently, we have adjusted the scope of foreign exchange valuations from the second quarter.
Slide 31: Run Up to HANWA 2030
Run Up to HANWA 2030 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 o