Dowa Holdings Co., Ltd. · TSE:5714
Dowa — Investor Presentation (May 2024)
29 slides from Dowa's investor presentation, May 17, 2024
Slide 1: Corporate Strategy Briefing FY2023
Corporate Strategy Briefing FY2023 (FY Ended March 2024) May 17, 2024
Slide 2: FY2023 Results and FY2024 Forecasts
FY2023 Results and FY2024 Forecasts - In FY2023, sales and profits decreased year-on-year due to falling metal prices and rising energy costs and material costs. - In FY2024, operating income is expected to be on par with the previous fiscal year, but ordinary income is expected to decline, mainly d
Slide 3: Factor Analysis of Changes in Ordinary Income (FY2021-FY2024)
Factor Analysis of Changes in Ordinary Income (FY2021-FY2024) - In FY2022 and FY2023, the impact of changes in the business environment, including metal prices, electricity costs, and material costs, put downward pressure on profit. - In FY2024, changes in the business environment will be put to bed
Slide 4: Ref.) Factor Analysis of FY2024 Ordinary Income (Changes from Midterm Plan 2024)
Ref.) Factor Analysis of FY2024 Ordinary Income (Changes from Midterm Plan 2024) (billion yen) Segment Progress in responses to and measures against changes in the business environment - Revised the unit price of waste treatment in response to cost increases Environmental ●Changes in the business en
Slide 5: Capital Investment, R&D expenses
Capital Investment, R&D expenses ● Capital Investment ● R&D expenses （billion yen) （billion yen) 140 40 124.4 120.0 120 33.0 30 29.0 100 50.4 10.0 80 73.9 20 19.0 60 39.8 10.4 40 34.1 73.9 19.0 10 8.5 20 34.1 8.5 0 0 FY2022 FY2023 FY2024 Midterm Plan FY2022 FY2023 FY2024 Midterm Plan (Total for 2 ye
Slide 6: Dividends
Dividends - In FY2023, despite a year-on-year decline in sales and profits, we increased the amount of ordinary dividends to 130 yen per share, as announced in Notice of Revisions of Dividends Forecasts dated February 9, 2024. In FY2024, we plan to pay ordinary dividends of 130 yen per share. Ordina
Slide 7: Evolution of Recycling-oriented Business Model
Progress of Midterm Plan 2024 Evolution of Recycling-oriented Business Model © 2024 DOWA HOLDINGS CO., LTD. 7
Slide 8: Environmental Management & Recycling (1): Business Overview of FY2024
Environmental Management & Recycling (1) Business Overview of FY2024 ● Business Strategies ● Ordinary Income Billion yen (Amounts less than 100 million yen are rounded down.) - Orders for waste treatment and recycling in Japan were firm. Business 0.5 confidence in Southeast Asia is showing a modest
Slide 9: Environmental Management & Recycling (2): Progress of Key Measures
Environmental Management & Recycling (2) Preparatory Business Finished Progress of Key Measures in Midterm Plan stage contribution Expanding treatment of hazardous Expanding treatment of fluorocarbons and other hazardous waste treatment waste Waste Driving the business of treating Increasing the vol
Slide 10: Strengthening Internal and External Cooperation
Environmental Management & Recycling (3) Strengthening Internal and External Cooperation Market demand for waste treatment and resource recycling has diversified (resource recycling, carbon neutrality, and response to the 2024 problems in logistics). --> Strengthening internal/external cooperation i
Slide 11: Nonferrous Metals (1): Business Overview of FY2024
Nonferrous Metals (1) Business Overview of FY2024 ● Business Strategies ● Ordinary Income Billion yen (Amounts less than 100 million yen are rounded down.) - In the precious metals and copper smelting business, we will replace aging (0.9) equipment and infrastructures in a phased manner and reinforc
Slide 12: Nonferrous Metals (2): Progress of Key Measures
Nonferrous Metals (2) Preparatory Business Finished Progress of Key Measures in Midterm Plan stage contribution Treating more materials for recycling by Introduction Tests and development Start of operation Precious metals and handling impurities of test facilities copper smelting Increasing the pro
Slide 13: Building a Sustainable Business Model of Nonferrous Metals Business
Nonferrous Metals (3) Building a Sustainable Business Model of Nonferrous Metals Business Making smelting complex resilient while at the same time addressing social issues for the sustainable development of Nonferrous Metals business. ● Maximizing functions of the complex with quality improvement an
Slide 14: Electronic Materials (1): Business Overview of FY2024
Electronic Materials (1) Business Overview of FY2024 ● Business Strategies ● Ordinary Income Billion yen (Amounts less than 100 million yen are rounded down.) - For silver powder, we will focus our efforts on developing products for highly functional panels and will make sure to tap into demand. 4.0
Slide 15: Electronic Materials (2): Progress of Key Measures
Electronic Materials (2) Preparatory Business Finished Progress of Key Measures in Midterm Plan Semiconductors stage contribution Increasing production capacity of Construction work for increasing production Sales expansion through expansion of applications short-wavelength-infrared LEDs and photo d
Slide 16: Business Strategy for Fuel Cell Materials
Electronic Materials (3) Business Strategy for Fuel Cell Materials Global market size for ● Market environment Fuel-Cell Battery(SOFC) / Hydrogen manufacturing devices(SOEC)* - While demand for green energy has been growing globally for decarbonization ■ Fuel-Cell Battery for industrial and househol
Slide 17: Metal Processing (1): Business Overview of FY2024
Metal Processing (1) Business Overview of FY2024 ● Business Strategies ● Ordinary Income Billion yen (Amounts less than 100 million yen are rounded down.) - In response to the strong demand for automotive production, we will drive (0.2) sales expansion of copper rolled products and precious metal el
Slide 18: Metal Processing (2): Progress of Key Measures
Metal Processing (2) Preparatory Business Finished Progress of Key Measures in Midterm Plan stage contribution Development of new Development of new products and alloys and process Sales expansion to high-voltage terminals for automotive use optimization expanded sales tailored to customer Developme
Slide 19: Business Strategy for Copper Rolled Products and Precious Metal Electroplating
Metal Processing (3) Business Strategy for Copper Rolled Products and Precious Metal Electroplating ● Technology trends in the markets where our products are used Technology trends in each field of application - Increasing power consumption by automobiles: bus bar Copper rolled products --> Increasi
Slide 20: Heat Treatment (1): Business Overview of FY2024
Heat Treatment (1) Business Overview of FY2024 ● Business Strategies ● Ordinary Income Billion yen (Amounts less than 100 million yen are rounded down.) - For heat treatment processing, we expect an increase in orders for processing for automobiles and industrial machinery, but electricity costs (0.
Slide 21: Heat Treatment (2): Progress of Key Measures
Heat Treatment (2) Preparatory Business Finished Progress of Key Measures in Midterm Plan stage contribution Facilities for manufacturing electronic materials Sales of test Designing a furnaces Designing a demonstration furnace mass-production Manufacturing of mass-production furnaces Developing and
Slide 22: Development and Sales Expansion of Z-TKM that Realizes Carbon-Neutral Heat Treatment
Heat Treatment (3) Development and Sales Expansion of Z-TKM that Realizes Carbon-Neutral Heat Treatment - CO2 emissions from industrial furnaces in Japan are 150 million tons/year (Equivalent to 13.5% of all emissions in Japan). - Decarbonization of heat processes in manufacturing is an urgent task.
Slide 23: Strengthening Sustainability Management
Progress of Midterm Plan 2024 Strengthening Sustainability Management © 2024 DOWA HOLDINGS CO., LTD. 23
Slide 24: Initiatives for strengthening sustainability management
Initiatives for strengthening sustainability management - Initiatives for contributing to solving social issues are making steady progress due to the driving of sustainability management that is directly linked to business management. - We plan to give explanations focused on sustainability manageme
Slide 25: Strengthen Corporate Branding
Strengthen Corporate Branding - We have begun to strengthen branding in response to changes in Japanese society, including a decline in the productive working population and a diversification of workstyles. - We will accelerate advertising using the tag line, “A Recycling-Oriented World,” to increas
Slide 26: (Appendix) Assumptions and Sensitivities
(Appendix) Assumptions and Sensitivities Sensitivity (Operating Income / FY2024) Million yen Assumptions Fluctuation Sensitivity Exchange rate 150.0 ¥/$ ±1 ¥/$ 490 Copper 9,000 $/ton ±100 $/ton 30 Zinc 2,500 $/ton ±100 $/ton 470 * Exchange rate sensitivity; Nonferrous Metals 380 million yen and Elec
Slide 27: (Appendix) Capital Investment
(Appendix) Capital Investment （billion yen) 140 Breakdown by segment (billion yen) 124.4 120.0 Midterm Plan 2024 FY2024 120 (Total for 3years) (Total for 3years) 100 50.4 6.0 10.6 6.0 4.9 36.0 33.2 80 73.9 18.0 17.3 120.0 124.4 billion yen billion yen 60 39.8 18.0 14.8 34.1 73.9 36.0 43.5 40 740 191
Slide 28: (Appendix) R&D expenses
(Appendix) R&D expenses （billion yen) 40 Breakdown by segment (billion yen) 33.0 Midterm Plan 2024 FY2024 (Total for 3years) (Total for 3years) 30 29.0 0.5 1.0 2.0 2.5 1.0 1.8 10.0 2.3 20 19.0 8.5 33.0 11.5 29.0 billion yen billion yen 10.4 16.0 14.7 19.0 10 8.5 191 191 191 8.5 Environmental Managem
Slide 29: 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. © 2024 DOWA HO