Dowa Holdings Co., Ltd. · TSE:5714
Dowa — H1 FY2019 Earnings Presentation
26 slides from Dowa's earnings presentation, Nov 15, 2019
Slide 1: Business Results and Progress of Key Measures
Business Results and Progress of Key Measures First Half of FY2019 (FY Ending March 2020) November 15, 2019
Slide 2: Overview of Results for the First Half of FY2019
Overview of Results for the First Half of FY2019 Billion yen FY2018 H1 FY2019 H1 Change Previous Results Results Year-on-Year From Previous Forecasts Forecasts ① ③ （③ - ①） （③ - ②） ② Net Sales 221.8 217.0 230.7 8.9 4% 13.7 6% Operating Income 9.3 8.5 11.0 1.7 18% 2.5 30% Ordinary Income 12.8 10.8 12.
Slide 3: Main Factor Analysis of Ordinary Income for the First Half of FY2019
Main Factor Analysis of Ordinary Income for the First Half of FY2019 (comparison with previous forecasts) ❚ Impact of market fluctuation ・ Revenue in foreign currency decreased because the yen continued to +0.04 appreciate during the period. billion yen ・Prices of base metals dropped, while prices o
Slide 4: Business Environment in the Second Half of FY2019 (Summary)
Business Environment in the Second Half of FY2019 (Summary) Changes Items Related Business Segments Business Environments from Initial Forecasts Foreign Nonferrous Metals, The exchange rate is expected to remain mostly the same as the Exchange ↓ Electronics Materials average in the first half of the
Slide 5: FY2019 Full-year Forecasts
FY2019 Full-year Forecasts Billion yen FY2018 FY2019 Forecasts Change Revised on Results Previous Year-on-Year From Previous Forecasts Nov. 6 ① ② （③ - ①） （③ - ②） ③ Net Sales 452.9 455.0 480.0 27.0 6% 25.0 5% Operating Income 18.6 24.5 24.5 5.8 31% - 0% Ordinary Income 24.3 30.0 30.0 5.6 23% - 0% Pro
Slide 6: FY2019 Full-year Forecasts Comparison by Segment
FY2019 Full-year Forecasts Comparison by Segment Billion yen FY2019 Forecasts on May 13 FY2019 Forecasts on Nov. 6 Changes Operating Ordinary Operating Ordinary Operating Ordinary Net Sales Net Sales Net Sales Income Income Income Income Income Income Environmental Management & 106.7 6.6 6.7 112.3 6
Slide 7: Ref.: FY2019 Full-year Forecasts (Assumptions and Sensitivities)
Ref.: FY2019 Full-year Forecasts (Assumptions and Sensitivities) Sensitivity (Operating Income / H2) Million yen Assumptions Fluctuation Sensitivity Exchange rate 108.0 ¥／$ ±1 ¥／$ 230 Copper 5,700 ＄／ｔ ±100 ＄／t 30 Zinc 2,500 ＄／ｔ ±100 ＄／t 210 Indium 150 ＄／kg ±10 ＄／kg 30 * Exchange rate sensitivity; No
Slide 8: Progress of Key Measures in Each Segment
Progress of Key Measures in Each Segment 8
Slide 9: Environmental Management & Recycling (1): Overview of FY2019
Environmental Management & Recycling (1) Overview of FY2019 Business Environment 《Major Product Trends》 （FY2018 H1＝100） FY2018 FY2019 • Waste: The volume of waste generated in Japan H1 H2 H1 H2 remains unchanged. In Southeast Asia, competition Intermediated Waste for waste collection is intensifying
Slide 10: Expansion of Waste Treatment Business in Southeast Asia
Environmental Management & Recycling (2) Expansion of Waste Treatment Business in Southeast Asia ❚ Thailand Incineration Plant in Thailand Midterm Plan 2020: The business domain is extended to hazardous waste treatment. Progress in FY2019 • July: Obtained approval to increase the volume of hazardous
Slide 11: Progress of Key Measures in Japan
Environmental Management & Recycling (3) Progress of Key Measures in Japan Amount of waste treatment in terms of ❚ Expansion of the melting / recycling business melting and recycling (2020＝100) Ash from incinerated municipal waste is recycled into 100 construction materials, and some metals containe
Slide 12: Nonferrous Metals (1): Overview of FY2019
Nonferrous Metals (1) 環境・リサイクル① Overview of FY2019 Business Environment 《Major Product Trends》 （FY2018 H1＝100） • Metal prices are affected by the global trade friction. FY2018 FY2019 The prices of base metals are weak, and those of H1 H2 H1 H2 precious metals including platinum-group metals Copper P
Slide 13: Deepening of the Recycling and Smelting Complex Function
Nonferrous Metals (2) Deepening of the Recycling and Smelting Complex Function ❚ Features of the recycling and smelting complex the recycling and smelting complex Approx. 20 types of valuable metals are collected Recycling by combining multiple smelting processes. concentrates used catalysts materia
Slide 14: Zinc Mine Development
Nonferrous Metals (3) Zinc Mine Development ❚ Start of operation at Los Gatos Mine • Planning to increase the operation rate and commence full production at the beginning of 2020. • Concentrate production: zinc: approx. 50,000 tons/year, lead: approx. 30,000 tons/year • Expected to start to contribu
Slide 15: Electronics Materials (1): Overview of FY2019
Electronics Materials (1) Overview of FY2019 Business Environment 《Major Product Trends》 （FY2018 H1＝100） FY2018 FY2019 • The number of solar panels installed is increasing. H1 H2 H1 H2 The ratio of new panels with higher power generation efficiency is rising. LED Sales Volume 100 63 64 61 • The semi
Slide 16: Sales Growth of Complex Oxide Powder for Fuel Cells
Electronics Materials (2) Sales Growth of Complex Oxide Powder for Fuel Cells ❚ Product Overview • Materials for fuel cell cathodes. • Takes oxygen from the air and ionizes it. ❚ Business Environment ion ion • In recent years, demand for fuel cells for business and industrial use such as emergency p
Slide 17: Expansion of Use of Silver Nano Powder
Electronics Materials (3) Expansion of Use of Silver Nano Powder Electromagnetic ❚ Use of Silver Nano Powder waves reflection • Joint material for precision electronic components such as semiconductor devices. absorption Electronic components • Shielding material that prevents the malfunction of Gro
Slide 18: Progress in Status of New Products
Electronics Materials (4) Progress in Status of New Products • The progress of fuel cell materials, nano-silver powder, and conductive atomized powder is generally in line with the targets in Midterm Plan 2020. • Market formation and the start of the Company’s products for short-wavelength Infrared
Slide 19: Metal Processing (1): Overview of FY2019
Metal Processing (1) Overview of FY2019 Business Environment 《Major Product Trends》 （FY2018 H1＝100） • Global automobile production is sluggish. FY2018 FY2019 • The adjustment phase in the semiconductor market H1 H2 H1 H2 continues. Copper Alloy Sales Volume (For Automobile) 100 106 97 103 • The deve
Slide 20: Progress of Expansion of Capacity and Sites
Metal Processing (2) Progress of Expansion of Capacity and Sites ❚ Copper rolled products ・ Increase of production and sales expansion in view of the medium- to long-term growth in demand Each of the two sites in Japan is investing heavily to expand the production capacity of high-performance copper
Slide 21: Expansion of Metal-ceramics Substrate Business
Metal Processing (3) Expansion of Metal-ceramics Substrate Business ❚ Market Trends What is a cooling fin integrated substrate? • Demand for the in-vehicle power module, a key A new metal-ceramics substrate integrated with a cooling fin. A substrate and an aluminum cooling fin are joined component
Slide 22: Heat Treatment (1): Overview of FY2019
Heat Treatment (1) Overview of FY2019 Business Environment 《Major Product Trends》 （FY2018 H1＝100） • Global automobile production is sluggish. Poor FY2018 FY2019 sales are prolonged, particularly in China and H1 H2 H1 H2 India. Heat Treatment Sales Amount 100 99 94 105 • The automobile production vol
Slide 23: Taking Measures in View of Medium- to Long-Term Trends
Heat Treatment (2) Taking Measures in View of Medium- to Long-Term Trends ❚ Medium- to Long-term Trends in Automobile Production Increase in overseas automobile production and further acceleration of local procurement of components => The need for customers to increase facilities will increase (expa
Slide 24: Transition of Ordinary Income
Transition of Ordinary Income 24
Slide 25: Returns to Shareholders
Returns to Shareholders DOWA regards the payment of dividends to shareholders as one of its top management priorities. The Company sets out a policy of increasing dividends as performance allows, while ensuring sufficient internal reserves for bolstering the corporate structure and expanding busines
Slide 26: 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. 26