Hanwa Co., Ltd. · TSE:8078

Hanwa — H1 FY2023 Earnings Presentation

28 slides from Hanwa's earnings presentation, Nov 14, 2023

  1. Slide 1: Financial Results for the First Half of FY2023

    )LQDQFLDO5HVXOWV IRUWKH)LUVW+DOIRI)< 1RYHPEHU +$1:$ &2 /7' &RS\ULJKWš+DQZD&R/WG$OO5LJKWV5HVHUYHG

  2. Slide 2: Summary of Financial Results

    6XPPDU\RI)LQDQFLDO5HVXOWV &RS\ULJKWš+DQZD&R/WG$OO5LJKWV5HVHUYHG

  3. Slide 3: Summary of Financial Results for the First Half

    6XPPDU\RI)LQDQFLDO5HVXOWV IRUWKH)LUVW+DOIRI)< 2UGLQDU\LQFRPHIRUWKHILUVWKDOIRI)<ZDVELOOLRQ\HQPDNLQJSURJUHVVWRZDUGWKHIXOO\HDU IRUHFDVWVRIELOOLRQ\HQ7KH)XOO\HDU)RUHFDVWVUHPDLQXQFKDQJHG < RQ < )< )< )< FKDQJH 3URJUHVV + + )RUHFDVW ELOOLRQVRI\HQ < RQ < 5DWH 1HW 6DOHV 2UGLQDU\ ,QFRPH 1HW,QFRPH$WWULEXWDEOHW

  4. Slide 4: Segment Information (Consolidated)

    6HJPHQW ,QIRUPDWLRQ‫&ق‬RQVROLGDWHG‫ك‬ ELOOLRQV RI <HQ )< )< <RQ< ,QFRPHE\6HJPHQW %XVLQHVV6HJPHQWV 0DLQ)DFWRUV + + &KDQJH 5DWH 0DUJLQVVKUXQNPDLQO\DWRYHUVHDVFRLOFHQWHUVXEVLGLDULHV 6WHHO GXHWRIDOOLQJVWHHOSURGXFWSULFHV 'XHWRIDOOVLQGLYLGHQGLQFRPHIURPVWUDWHJLFLQYHVWPHQWV 3ULPDU\0HWDO DQGHTXLW\LQHDUQLQJVRI

  5. Slide 5: Segment Income Forecast

    6HJPHQW,QFRPH)RUHFDVW ELOOLRQV RI <HQ %XVLQHVV )< )< 3URJUHVV 0DLQ)DFWRUV 6HJPHQW )RUHFDVW +5HVXOWV 6WHHO )DOOLQJVWHHOSURGXFWPDUNHWSULFHV 6$0$1&25 VSHUIRUPDQFHH[FHHGHGH[SHFWDWLRQV 3ULPDU\0HWDO 7UDQVDFWLRQYROXPHRIFKURPLXPDQGPDQJDQHVHLQFUHDVHG ,QWHUQDWLRQDOSULFHVRIEDVHPHWDOVUHPDLQORZ 0HWDO5HF\FOLQJ 7K

  6. Slide 6: Impacts of Profits/Losses from Market Value Accounting and Temporary Factors

    ,PSDFWVRI3URILWV/RVVHVIURP 0DUNHW9DOXH$FFRXQWLQJDQG7HPSRUDU\)DFWRUV 7KHUHSRUWHGRUGLQDU\LQFRPHZDVELOOLRQ\HQEXWFDQEHWUDQVODWHGLQWRDERXWELOOLRQ\HQDIWHU H[FOXGLQJRQHWLPHIDFWRUVVXFKDVSHULRGHQGYDOXDWLRQJDLQVDQGORVVHV ELOOLRQV RI <HQ 2WKHU 2QHWLPH ,QYHQWRU\ 'HULYDWLYH 9DOXDWLRQ 9DOXDWLRQ )DFWRUV )RUHLJQ ([

  7. Slide 7: Financial Position (Consolidated)

    )LQDQFLDO3RVLWLRQ &RQVROLGDWHG ELOOLRQV RI <HQ &KDQJH 0DU 6HS 0DLQ)DFWRUV ‫ق‬5DWH‫ك‬ ,QFUHDVHLQWUDGHUHFHLYDEOHVDQGLQYHVWPHQW 7RWDO$VVHWV VHFXULWLHV 6KDUHKROGHU V(TXLW\ 2ZQHU V(TXLW\ $FFXPXODWLRQRIUHWDLQHGHDUQLQJVHWF 2ZQHU VHTXLW\UDWLR‫ق‬٫‫ك‬ SW WDNLQJDFFRXQWRIK\EULGORDQ ,QWHUHVWEHDULQJ'HEW 0DLQWDLQH

  8. Slide 8: Cash Flows (Consolidated)

    &DVK)ORZV &RQVROLGDWHG ELOOLRQV RI <HQ )< )< <RQ<FKDQJH + + &DVK)ORZVIURP2SHUDWLQJ$FWLYLWLHV &RUH2SHUDWLQJ&DVK)ORZ &DVK)ORZVIURP2SHUDWLQJ$FWLYLWLHV ٕ,QFUHDVH'HFUHDVHLQ:RUNLQJ&DSLWDO &DVK)ORZVIURP,QYHVWLQJ$FWLYLWLHV )UHH&DVK)ORZV &DVK)ORZVIURP)LQDQFLQJ$FWLYLWLHV &DVKDQG&DVK(TXLYDOHQWV &RS\ULJKWš+DQZD

  9. Slide 9: Investments in Business

    ,QYHVWPHQWVLQEXVLQHVV 6HJPHQWV $PRXQW 0DMRU,QYHVWPHQWV &DSDFLW\H[SDQVLRQRI 6WHHO GRPHVWLFDQGRYHUVHDVVXEVLGLDULHV &DSDFLW\H[SDQVLRQRI 0HWDO5HF\FOLQJ GRPHVWLFPHWDOUHF\FOLQJVXEVLGLDU\ (QHUJ\ /LYLQJ0DWHULDOV 5HF\FOHG)XHO%XVLQHVV 2YHUVHDV 6XEVLGLDULHV &DSDFLW\H[SDQVLRQRI 2WKHUV GRPHVWLFVXEVLGLDULHV :KROH

  10. Slide 10: Shareholder Return Policy

    6KDUHKROGHU5HWXUQ3ROLF\ $QQRXQFHGLQ0D\ 1HZVKDUHKROGHUUHWXUQSROLF\ 6WULYHIRUVXVWDLQDEOHJURZWKRIFRUSRUDWHYDOXHZLWKDLPWRLQFUHDVHGLYLGHQGVRYHUWKHPHGLXPWRORQJWHUP • 'LYLGHQGVZLOOEHFRQGXFWHGZLWKGLYLGHQGRQHTXLW\UDWLR '2( RIRIEHJLQQLQJFRQVROLGDWHG VKDUHKROGHUVbHTXLW\ DVWKHPLQLPXPGLYLGHQGOHYHO • )OH[LEO\FRQV

  11. Slide 11: Our Stock Price, PBR and Credit Ratings

    2XU6WRFN3ULFH3%5DWLR &UHGLW5DWLQJV $VRIWKH(QGRI0DUb ਊ঺ઙ੼ Stock Price ਊ঺3%5 P/B ratio $VRIWKH(QGRI6HSb 6WRFN 3% 2XU6WRFN 3ULFH\HQ 2XU6WRFN 3ULFH\HQ 3ULFH UDWLR <HQ 2XU3%5DWLR 2XU3%5DWLR 7UHQGVLQ 2XU6WRFN 3ULFH 3%5DWLR 0DU 6HS 0DU 6HS 0DU 6HS 0DU 6HS 0DU 6HS $$ -&5 5‫٭‬, $$ -&5 6KDUHKROGHUVbHTXLW\DWWK

  12. Slide 12: Actions to Implement Management Conscious of Cost of Capital and Stock Prices

    $FWLRQVWR,PSOHPHQW0DQDJHPHQW WKDWLVFRQVFLRXVRIFRVWRIFDSLWDODQGVWRFNSULFHV 52(VLJQLILFDQWO\HQKDQFHGWKDQNVWRWKHRQJRLQJFRPSDQ\DFWLYLWLHVDVZHOODVWKHUHFRYHU\RIHFRQRPLFDFWLYLWLHVDIWHUWKH&29,'SDQGHPLF 2QWKHRWKHUKDQGGHVSLWHWKHLPSURYHPHQWLQ52(WKHUHLVXQFHUWDLQW\DERXWWKHVXVWDLQDELOLW\DQGJURZWKSRWHQWLDORIHDUQLQ

  13. Slide 13: Dialogue with Shareholders

    'LDORJXHZLWKVKDUHKROGHUV 5HVXOWV )< )HHGEDFN DQG $FWLRQ )HHGEDFNWR )UHT (YHQWV )UHTXHQF\ 'HWDLOV 'HWDLOV ([HFXWLYHV XHQF\ 7ZREULHILQJVRQWKHILQDQFLDOUHVXOWVZHUH 6LJQLILFDQWLQYHVWRULQWHUHVWVRSLQLRQVDQG %XVLQHVV5HVXOWV KHOGZLWKWKHDWWHQGDQFHRIWKH&KDLUPDQ UHTXHVWVLGHQWLILHGWKURXJK,5DFWLYLWLHVZHUH %ULHILQ

  14. Slide 14: Target for Reducing Strategic Shareholdings

    7DUJHWIRUUHGXFLQJVWUDWHJLFVKDUHKROGLQJV 7KH&RPSDQ\HYDOXDWHVZKHWKHUWKHEHQHILWVRIKROGLQJVKDUHVMXVWLI\WKHFRVWRIFDSLWDO2XUFXUUHQW0HGLXPWHUP%XVLQHVV3ODQDLPVWRHQKDQFHFDSLWDO HIILFLHQF\E\WDUJHWLQJDQ52(RIRUKLJKHU7RUHDFKWKLVREMHFWLYHZHFRQGXFWHGDWKRURXJKH[DPLQDWLRQRIVWUDWHJLFVKDUHKROGLQJVDQGHVWDEOLVKD VSHFLIL

  15. Slide 15: Details by Segment

    'HWDLOVE\6HJPHQW &RS\ULJKWš+DQZD&R/WG$OO5LJKWV5HVHUYHG

  16. Slide 16: Steel Business Segment

    6WHHO%XVLQHVV6HJPHQW 6HJPHQWLQFRPHGHFUHDVHGDVSURILWPDUJLQVVKUXQNDWVRPHRYHUVHDVVDOHVVXEVLGLDULHVGXHWRGHFOLQLQJVWHHOSURGXFWSULFHV ‫ق‬7KRXVDQG WRQV‫ك‬ )< )< <RQ<&KDQJH 7UDQVDFWLRQ9ROXPH‫&ق‬RQVROLGDWHG‫ك‬ ELOOLRQVRI\HQ + + ‫<ق‬RQ<5DWH‫ك‬ /RQJ )ODW )HUURXVUDZPDWHULDOV 2WKHUV 1HW6DOHV 7KHFRQVROLGDWHGVWHHO

  17. Slide 17: Primary Metal Business Segment

    3ULPDU\0HWDO%XVLQHVV6HJPHQW 6HJPHQWLQFRPHGHFUHDVHGGXHWRIDOOVLQGLYLGHQGLQFRPHIURPVWUDWHJLFLQYHVWPHQWVDQGHTXLW\LQHDUQLQJVRIDIILOLDWHVIURP 6$0$1&25&+520(+2/',1*635235,(7$5</7' ‫ق‬7KRXVDQG WRQV‫ك‬ )< )< <RQ<&KDQJH 7UDQVDFWLRQ9ROXPH‫ق‬8QFRQVROLGDWHG‫ك‬ 1LFNHO 6WDLQOHVVEDVHPHWDO ELOOLRQVRI\HQ + + ‫<ق‬RQ<5

  18. Slide 18: Metal Recycling Business Segment

    0HWDO5HF\FOLQJ%XVLQHVV6HJPHQW ,QWHUQDWLRQDOSULFHVRIEDVHPHWDOVKDYHGHFOLQHG<R<GXHWRHFRQRPLFVORZGRZQFRQFHUQVLQYDULRXVFRXQWULHV7KHGHPDQGDQGWUDQVDFWLRQYROXPH HVSHFLDOO\IRUVWDLQOHVVVFUDSKDVDOVRGHFUHDVHG $GGLWLRQDOO\DGHFUHDVHLQDSSUDLVDOJDLQIURPFRPPRGLW\IRUZDUGFRQWUDFWVLQKHGJHWUDQVDFWLRQVKDVFRQWULEXWHGWRWKH

  19. Slide 19: Foods Business Segment

    )RRGV%XVLQHVV6HJPHQW :KLOHWKHFRPSDQ\VXFFHVVIXOO\SDVVHGRQLQFUHDVHGSURFXUHPHQWFRVWVVSHFLILFDOO\IRUVDOPRQSUDZQVDQGFKLFNHQLWZDV LPSDFWHGE\WKHGRZQWXUQLQWKHFUDEPDUNHW ‫ق‬7KRXVDQG WRQV‫ك‬ 7UDQVDFWLRQ9ROXPH‫ق‬8QFRQVROLGDWHG‫ك‬ )< )< <RQ<&KDQJH 3UDZQV 6KULPS &UDE ELOOLRQVRI\HQ + + ‫<ق‬RQ<5DWH‫ك‬ 6DOPRQ 7URXW

  20. Slide 20: Energy & Living Materials Business Segment

    (QHUJ\ /LYLQJ0DWHULDOV%XVLQHVV6HJPHQW $OWKRXJKWKHWUDQVDFWLRQYROXPHRIWKHSURGXFWVVXFKDVSDOPNHUQHOVKHOOV 3.6 DQGZRRGSHOOHWVKDVLQFUHDVHGWKHLPSDFWRI ORZHUSHWUROHXPSURGXFWSULFHVZDVVLJQLILFDQWSXVKLQJGRZQ WKHVHJPHQWLQFRPH ‫ق‬7KRXVDQG WRQV‫ك‬ )< )< <RQ<&KDQJH 7UDQVDFWLRQ9ROXPH‫ق‬8QFRQVROLGDWHG‫ك‬ +HDY\RLO /L

  21. Slide 21: Overseas Sales Subsidiaries Segment

    2YHUVHDV6DOHV6XEVLGLDULHV6HJPHQW 7UDQVDFWLRQYROXPHVRIVDOHVVXEVLGLDULHVPDLQO\LQ,QGRQHVLDDQGWKH86GHFUHDVHGGXHWRVOXJJLVKGHPDQGIRUVWHHOLQRYHUVHDV PDUNHWV,QDGGLWLRQGHFUHDVHVLQPDUNHWSULFHVRIVWHHOSURGXFWVDQGQRQIHUURXVPHWDOSURGXFWVSXWSUHVVXUHRQWKHSURILWPDUJLQV RIWKHRYHUVHDVVDOHVVXEVLGLDULHVDVDZKROH ‫ق‬%LOOL

  22. Slide 22: Other Segments

    2WKHU6HJPHQWV :RRG‫؟‬3URGXFWSULFHVUHPDLQVOXJJLVKGXHWRWKHUHERXQGIURPWKHZRRGVKRFN 0DFKLQHU\‫؟‬6HYHUDOODUJHVFDOHSURMHFWVDUHFRPSOHWHG ‫ق‬%LOOLRQVRI\HQ‫ك‬ %UHDNGRZQRI2WKHU6HJPHQWV,QFRPH )< )< <RQ<&KDQJH :RRG 0DFKLQHU\ 2WKHUV ELOOLRQVRI\HQ + + ‫<ق‬RQ<5DWH‫ك‬ 1HW6DOHV 2UGLQDU\LQFRPH 3DUHQWRQO\ 'RPHVWLFFRQV

  23. Slide 23: Actual Ordinary Income by Segment

    $FWXDO 2UGLQDU\,QFRPHE\6HJPHQW ELOOLRQV RI <HQ $FFRXQWLQJ 9DOXDWLRQDQG7HPSRUDU\,WHPV $FWXDO 6HJPHQWV 1HW6DOHV 2UGLQDU\ )RUHLJQ 2UGLQDU\ ,QFRPH ,QYHQWRU\ 'HULYHWLYH 2WKHU2QHWLPH ,QFRPH ([FKDQJH 9DOXDWLRQ 9DOXDWLRQ )DFWRUV 9DOXDWLRQ 6WHHO 3ULPDU\0HWDO 0HWDO5HF\FOLQJ )RRGV (QHUJ\ /LYLQJ0DWHULDOV 2YHUVH

  24. Slide 24: Appendix

    $SSHQGL[ &RS\ULJKWš+DQZD&R/WG$OO5LJKWV5HVHUYHG 23

  25. Slide 25: Market Trend of Steel Products

    Market Trend of Steel Products Long Products: Redevelopment projects and large construction projects remained strong in urban Chinese steel market: Although demand from construction industry was still sluggish and areas, while demand in non-urban areas was weak. Manufacture’s Prices remain unchanged

  26. Slide 26: Market Trend of Steel and Metal Raw Materials

    Market Trend of Steel and Metal Raw Materials Iron ore: Although steel demand was sluggish on a global basis, prices remained high because of Steel Scrap: While demand declined due to the decreases in real estate development projects in China’s support buying resulted from the economic stimulation p

  27. Slide 27: Market Trend of Imported Marine Products and Crude Oil & Petroleum Products

    Market Trend of Imported Marine Products and Crude Oil & Petroleum Products Salmon: Although prices remain strong due to the weakening yen and the season transitional Crude Oil: Prices have been at a standstill due to economic uncertainty in the U.S., Europe and period, there is a slight decline due

  28. Slide 28: Forward-looking statements notice

    +$1:$&2/7' 7KLVSUHVHQWDWLRQFRQWDLQVIRUZDUGORRNLQJVWDWHPHQWVFRQFHUQLQJIXWXUHUHVXOWVSHUIRUPDQFHDQGDFKLHYHPHQWV WKDWDUHVXEMHFWWRULVNDQGXQFHUWDLQWLHVDQGUHIOHFWPDQDJHPHQWbVYLHZVDQGDVVXPSWLRQVIRUPHGE\DYDLODEOH LQIRUPDWLRQ&RQVHTXHQWO\GXHWRDUDQJHRISRVVLEOHIDFWRUVDFWXDOUHVXOWVPD\PDWHULDOO\GLIIHUIURPWKH IRUHF

Hanwa — H1 FY2023 Earnings Presentation on 6ix