Dowa Holdings Co., Ltd. · TSE:5714
Dowa — H1 FY2016 Earnings Presentation
22 slides from Dowa's earnings presentation, Nov 9, 2016
Slide 1: Fiscal 2016 First Half Business Results
Fiscal 2016 First Half Business Results November 9, 2016
Slide 2: Overview of Operating Results
Overview of Operating Results ■Consolidated Income Statements Billion yen FY2015 FY2016 H1 Year on year H1 results forecast on results changes changes (A) May 10 (B) (C) （C－B） （C－A） Net Sales 208.2 185.0 184.7 (0.2) (0%) (23.5) (11%) Operating Income 20.2 11.5 13.3 1.8 16% (6.9) (34%) Ordinary Incom
Slide 3: FY2016 Forecast Comparison (H1)
FY2016 Forecast Comparison (H1) Billion yen FY2016 H1 Forecast FY2016 H1 results Change (May 10, 2016) Operating Ordinary Operating Ordinary Operating Ordinary Net Sales Net Sales Net Sales Income Income Income Income Income Income Environmental Management & 45.0 2.4 2.3 45.4 2.6 2.4 0.4 0.2 0.1 Rec
Slide 4: Forecast for Fiscal 2016
Forecast for Fiscal 2016 Billion yen FY2015 FY2016 Change results forecast Net Sales 406.5 385.0 (21.5) Operating Income 35.0 29.0 (6.0) Ordinary Income 35.0 29.0 (6.0) Net Income 21.8 20.0 (1.8) Ordinary income in the first half of FY2016 exceeded the initial forecast and also remains higher than
Slide 5: FY2016 Forecast Comparison (full year)
FY2016 Forecast Comparison (full year) Billion yen Previous Forecast Reviced Forecast Change (May 10, 2016) (Nov 7, 2016) Operating Ordinary Operating Ordinary Operating Ordinary Net Sales Net Sales Net Sales Income Income Income Income Income Income Environmental Management & 97.0 6.8 6.8 94.0 5.9
Slide 6: FY2016 Assumptions and Sensitivities (H2)
FY2016 Assumptions and Sensitivities(H2) Sensitivity (Operating Income / H2) Million yen Assumptions Fluctuation Sensitivity Exchange rate 105.0 ¥/$ ±１\/＄ 220 Copper 4,600 ＄／t ±100＄/t 20 Zinc 2,300 ＄／t ±100＄/t 200 Indium 200 ＄／kg ±100＄/kg 300 * Exchange rate sensitivity; Nonferrous Metals 180 millio
Slide 7: Ref.1 Year-on-Year Comparison (H1)
Ref.1 Year-on-Year Comparison (H1) Billion yen FY2015 H1 results FY2016 H1 results Change Operating Ordinary Operating Ordinary Operating Ordinary Net Sales Net Sales Net Sales Income Income Income Income Income Income Environmental Management & 49.7 3.2 3.0 45.4 2.6 2.4 (4.2) (0.6) (0.5) Recycling
Slide 8: Ref.2 Year-on-Year Comparison (full year)
Ref.2 Year-on-Year Comparison (full year) Billion yen FY2015 Results FY2016 Forecast Change Operating Ordinary Operating Ordinary Operating Ordinary Net Sales Net Sales Net Sales Income Income Income Income Income Income Environmental Management & 98.3 6.3 6.1 94.0 5.9 6.1 (4.3) (0.4) (0.0) Recyclin
Slide 9: Ref.3 Cost Outlook for Prospecting Projects
Ref.3 Cost Outlook for Prospecting Projects Billion Yen FY2016 On and after FY2013 FY2014 FY2015 H2 FY2017 FY2018 H1 total FY2019 assumption Prospeting (incurred a total amount of $22M, (F/S) → Alaska （Palmer） acqired a 49% share interest) (Development/certification and licensing) Operating expenses
Slide 10: Challenges in Our Business and Focus for the Future
Challenges in Our Business and Focus for the Futures 10
Slide 11: Environmental Management & Recycling
Environmental Management & Recycling Net Sales and Ordinary Income Situation in FY2016 ordinary income in H2 Billion yen 14.0 ordinary income in H1 120 • Waste treatment: Waste emissions decreased Net sales 12.0 slightly. Price competition in low-contaminated 100 PCB waste intensified. 10.0 80 Net S
Slide 12: Activities in Domestic Waste Treatment Business
Activities in Domestic Waste Treatment Business Low-contaminated PCB Waste Number of operators of waste electric appliances & treated volume 16 40 The number of treatment business operators of waste Number of operators Kilo compa electric appliances is increasing. nies Treated volume tons Growth of
Slide 13: Nonferrous Metals
Nonferrous Metals Net Sales and Ordinary Income Situation in FY2016 ordinary income in H2 Billion yen 250 ordinary income in H1 • The prices of zinc and precious metals Net sales remained stable. The yen remains strong on 15.0 the exchange market. 200 • Domestic demand for metal for construction Net
Slide 14: Improving Platinum Group Recycling
Improving Platinum Group Recycling Used automotive catalysts The global volume continues to increase due to tighter environmental regulations. ■Increasing Nippon PGMʼs capacity ・ 1Q FY2016: Installed a new melting furnace. Used automotive catalysts ・ Will improve each process from now on. Volume of
Slide 15: Electronics Materials
Electronics Materials Net Sales and Ordinary Income Situation in FY2016 100 ordinary income in H2 Billion yen 14 ordinary income in H1 • Production adjustment of Sensor LEDs Net sales 12 continues. 80 • Silver powder for new forms of energy 10 remains strong, particularly in the North Net Sales Ordi
Slide 16: Development of New Products for Sensors and Electronic Circuits
Development of New Products for Sensors and Electronic Circuits For sensors ・ Increase in sensors per unit of smartphone or wearable device. Heart rate Developing new LED products appropriate for measuring vital sensor data. (back side) ・ New sensing methods are emerging in the field of optical se
Slide 17: Metal Processing
Metal Processing Net Sales and Ordinary Income Situation in FY2016 Billion yen 100 ordinary income in H2 10.0 • Copper rolled products: Sales of products for ordinary income in H1 automobiles and semiconductors remained Net sales 80 8.0 stable, and those for smartphones increased. Ordinary Income •
Slide 18: Development and Sales Expansion of New Products for Automobiles
Development and Sales Expansion of New Products for Automobiles Increase in the use of electric power and electric components in automobiles Increase in the production of hybrid vehicles, use of connectors and switches Use of electric power Use of electrical parts Relay box Wire harness connector Hi
Slide 19: Heat Treatment
Heat Treatment Net Sales and Ordinary Income Situation in FY2016 Billion yen ordinary income in H2 30 ordinary income in H1 • Industrial furnace: Capital investment Net sales 3 25 made towards the end of the fiscal year. Projects and demand for maintenance 20 are increasing. Net Sales Ordinary Incom
Slide 20: Improving and Expanding Heat Treatment Business
Improving and Expanding Heat Treatment Business ■Heat treatment Mexico ・ Complete the construction of a heat treatment processing plant (October 2016). ・ Increase the range of treatment depending on the entry of customers into the local market. Mexico plant (San Luis Potosí) Japan ・ Construct a new
Slide 21: Ordinary Income and Net Income
Ordinary Income and Net Income 21
Slide 22: 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. 22