Hanwa Co., Ltd. · TSE:8078

Hanwa — Q1 FY2025 Earnings Presentation

29 slides from Hanwa's earnings presentation, August 2025

  1. Slide 1: Outline of Financial Results for the First Quarter ended June 30, 2025

    Outline of Financial Results for the First Quarter ended June 30, 2025 August 2025 HANWA CO., LTD. Copyright© 2025 Hanwa Co., Ltd. All Rights Reserved

  2. Slide 2: Agenda

    1. Summary of FY2025 Q1 Financial Results and Progress 2. Progress on Medium-Term Business Plan 2025 3. Details by Business Segment Copyright© 2025 Hanwa Co., Ltd. All Rights Reserved 1

  3. Slide 3: 1. Summary of FY2025 Q1 Financial Results and Progress

    1. Summary of FY2025 Q1 Financial Results and Progress Copyright© 2025 Hanwa Co., Ltd. All Rights Reserved 2

  4. Slide 4: Summary of Consolidated Financial Results

    Summary of Consolidated Financial Results ◼ Ordinary income for FY2025 Q1 was 14.0 bil. yen, making 25% progress toward the full-year forecast of 55 bil. yen. The full-year forecast remained unchanged. FY2024 FY2025 Y on Y FY2025 (billions of yen) Progress Q1 Results Q1 Results change (Rate) Forecas

  5. Slide 5: Segment Information (Consolidated)

    Segment Information (Consolidated) （billions of yen） Ordinary Income Business Segment FY2024 FY2025 Y on Y Change Main Factors Q1 Q1 (Y on Y Rate) by Segment 14.0 +2.0 Profits increased due to steady sales of construction materials, solid Steel 7.7 9.7 performance in the domestic construction sector

  6. Slide 6: Segment Ordinary Income compared to Forecast

    Segment Ordinary Income compared to Forecast （billions of yen） FY2025 Forecast FY2025 Q1 Rate against Rate against Business 1st Half Full year Main Factors Segments 1st Half 2nd Half Full year Results Forecast Forecast Despite sluggish demand for steel products and a decline in transaction volumes—p

  7. Slide 7: Quarterly Ordinary Income by Segment

    Quarterly Ordinary Income by Segment （billions of yen） FY2024 FY2025 Y on Y Business Segment Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 YTD Change Steel 7.7 6.4 9.4 9.4 33.1 9.7 9.7 +2.0 Primary Metal 1.1 2.2 -0.4 3.0 6.0 -0.5 -0.5 -1.7 Metal Recycling 0.7 0.7 1.4 0.1 3.0 -0.0 -0.0 -0.8 Foods 0.3 0.4 1.4 0.0 2.3

  8. Slide 8: Impacts of Profits/Losses from Market Value Accounting and Temporary Factors

    Impacts of Profits/Losses from Market Value Accounting and Temporary Factors ◼ Actual ordinary income was 14.0 bil. yen while accounting ordinary income was 14.0 bil. yen. （billions of yen） Foreign Other Inventory Derivative Exchange One-time Valuation Valuation Valuation Factors 14.0 14.0 +0.1 -0.3

  9. Slide 9: Financial Position (Consolidated)

    Financial Position (Consolidated) （billions of yen） Change Mar. 2025 Jun. 2025 Main Factors （Rate） -24.0 Decreased due to a reduction in inventories and Total Assets 1,165.8 1,141.7 accounts receivable. (-2%) +4.4 Shareholder's Equity 339.6 344.1 (+1%) Despite the acquisition of the company’s own sh

  10. Slide 10: 2. Progress on Medium-Term Business Plan 2025

    2. Progress on Medium-Term Business Plan 2025 Copyright© 2025 Hanwa Co., Ltd. All Rights Reserved 9

  11. Slide 11: Reducing Strategic Shareholdings

    Reducing Strategic Shareholdings ◼ Sold shares of 7 companies for a total of 0.27 bil. yen through FY2025 Q1. ◼ Continue divestments to achieve a further reduction in terms of capital efficiency and asset replacement. Mar. 2025 Jun. 2025 Ratio of strategic shareholdings to net assets 15.6% 15.2% Amo

  12. Slide 12: Investments Updates FY2025 Q1

    Investments Updates FY2025 Q1 Segments Amounts Major Projects Mid-Term Business Plan 2025 FY2025 Q1 (during Mid-Term Business Plan 2025) （Target: Total of 80bil. Yen) Establishment of new factories at overseas coil center subsidiaries. Steel 4.5 bil. yen Acquisition of Shares in Kanematsu Trading Co

  13. Slide 13: Major Disclosed Investments and Asset Replacements

    Major Disclosed Investments and Asset Replacements Investment in Tire Pyrolysis Recycling Business in Kanematsu Trading Corporation, which had been incorporated Thailand into our group of companies, has officially changed its corporate name. HANWA THAILAND CO., LTD. (“HANWA THAILAND”), a subsidiary

  14. Slide 14: 3. Details by Business Segment

    3. Details by Business Segment Copyright© 2025 Hanwa Co., Ltd. All Rights Reserved 13

  15. Slide 15: Steel Business Segment

    Steel Business Segment ◼ The decrease in transaction volume and falling prices of various steel products exerted downward pressure on sales. ◼ Profits increased due to steady sales of construction materials, solid performance in the domestic construction sector. sales at some overseas subsidiaries i

  16. Slide 16: Steel Business Segment: Transaction Volume

    Steel Business Segment （thousand tons） Trend of Transaction Volume* (Consolidated) Quarterly Changes Q1 Total 2,181 Others Ferrous raw materials Flat Long 2,052 279 2,181 2,154 2,152 46 271 2,047 2,052 39 279 240 243 212 45 28 271 46 47 39 960 869 960 949 961 959 869 894 872 894 828 919 919 872 Q1 Q

  17. Slide 17: Primary Metal Business Segment

    Primary Metal Business Segment ◼ Although the standalone results showed increased profits due to higher transaction volumes of stainless products and other items, consolidated profits declined due to equity in losses from SAMANCOR CHROME HOLDINGS PROPRIETARY LTD. FY2024 FY2025 Y on Y Change (billion

  18. Slide 18: Primary Metal Business Segment: Transaction Volume

    Primary Metal Business Segment （thousand tons） Trend of Transaction Volume (Unconsolidated) Quarterly Changes Q1 Total Quarterly Changes 943 Others(*) Iron scrap Manganese Sillicone Chromium Stainless Nickel 943 804 800 800 716 427 680 427 349 343 343 278 320 335 335 291 291 306 284 250 56 30 44 35

  19. Slide 19: Metal Recycling Business Segment

    Metal Recycling Business Segment ◼ The increase in transaction volumes of precious metal materials led to improved sales. ◼ Profits decreased due to a decline in market prices of aluminum and nickel. FY2024 FY2025 Y on Y Change (billions of yen) Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total (Y on Y Rate) +9.9

  20. Slide 20: Metal Recycling Business Segment: Transaction Volume

    Metal Recycling Business Segment （thousand tons） Trend of Transaction Volume (Unconsolidated) Quarterly Changes Q1 Total Others 72 74 72 precious metal materials 64 7 68 Lead 7 64 64 7 Copper 7 7 7 Aluminum 20 7 20 20 Stainless scrap 14 16 14 19 2 3 5 5 2 8 3 7 6 1 8 7 7 7 25 27 25 26 26 27 24 5 5 6

  21. Slide 21: Foods Business Segment

    Foods Business Segment ◼ Sales to the food service industry in U.S. subsidiaries remained strong, and a newly consolidated subsidiary performed well. FY2024 FY2025 Y on Y Change (billions of yen) Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total (Y on Y Rate) +6.3 Net Sales 29.3 36.5 42.1 32.4 140.4 35.6 － － － 35

  22. Slide 22: Foods Business Segment: Transaction Volume

    Foods Business Segment （thousand tons） Trend of Transaction Volume (Unconsolidated) Quarterly Changes Q1 Total 26 24 26 2 26 26 24 2 23 1 1 2 5 1 2 4 4 5 7 4 4 5 4 5 5 4 3 4 3 3 3 3 2 4 3 5 5 5 5 6 5 5 1 1 1 1 0 0 0 2 2 3 2 2 2 2 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2024 Q1 FY2025 Q1 FY2024 FY2025 Copyright© 2

  23. Slide 23: Energy & Living Materials Business Segment

    Energy & Living Materials Business Segment ◼ Sales of wood pellets remained firm, and profitability improved in some subsidiaries. FY2024 FY2025 Y on Y Change (billions of yen) Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total (Y on Y Rate) +0.0 Net Sales 93.6 90.9 99.8 107.3 391.6 93.6 － － － 93.6 (+0%) +1.0 Ordi

  24. Slide 24: Energy & Living Materials: Transaction Volume

    Energy & Living Materials Business Segment （thousand tons） Trend of Transaction Volume (Unconsolidated) Quarterly Changes Q1 Total （千t） Others Wood pelet PKS 1,298 Chemical products Diesel fuel, Kerosene, Gasoline Heavy oil 1,185 64 Bunker oil 55 1,348 1,298 323 1,225 53 196 1,185 64 55 58 330 323 1

  25. Slide 25: Overseas Sales Subsidiaries Segment

    Overseas Sales Subsidiaries Segment ◼ There was an increase in scrap transactions in Southeast Asia and newly consolidated companies contributed to overall performance. FY2024 FY2025 Y on Y Change (billions of yen) Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total (Y on Y Rate) +20.9 Net Sales 97.5 108.4 116.2 11

  26. Slide 26: Overseas Sales Subsidiaries: Steel Transaction Volume

    Overseas Sales Subsidiaries Segment （thousand tons） Trend of Steel Transaction Volume (Sum of Overseas Sales Subsidiaries) Quarterly Changes Q1 Total Others 1,154 1,156 1,156 Ferrous raw materials 107 Flat 169 947 169 Long 779 140 486 30 651 523 651 523 101 348 435 101 227 227 458 375 375 343 290 25

  27. Slide 27: Other Segment

    Other Segment ◼ Housing Materials: Market prices of European lumber were lower. ◼ Machineries: There was an increase in completed projects in industrial machinery. FY2024 FY2025 Y on Y Change (billions of yen) Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total (Y on Y Rate) -0.7 Net Sales 32.0 33.3 34.2 34.0 133.7

  28. Slide 28: Actual Ordinary Income by Segment

    Actual Ordinary Income by Segment （billions of yen） Rate against Valuation and Temporary Items Accounting Actual FY2025 Forecast Business Segments Net Sales Ordinary Foreign Ordinary Income Inventory Derivative One-time Income Valuation Valuation Exchange Factors 1st Half Full year Valuation Steel 2

  29. Slide 29: 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

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