Hanwa Co., Ltd. · TSE:8078
Hanwa — FY2021 Earnings Presentation
31 slides from Hanwa's earnings presentation, May 20, 2022
Slide 1: Financial Results for the Fiscal Year ended March 31, 2022
Financial Results for the Fiscal Year ended March 31, 2022 May 2022 HANWA CO., LTD. Copyright© 2022 Hanwa Co., Ltd. All Rights Reserved
Slide 2: Operating Results (Consolidated)
Operating Results (Consolidated) Fiscal Year (ended March 31) FY2020 FY2021 Y on Y Y on Y (billions of yen) Change Rate Net Sales* 1,745.5 2,164.0 ー ー Gross Profit 79.9 119.0 +39.0 +49% SG&A 50.6 56.6 +5.9 +12% Operating income 29.2 62.3 +33.1 +113% Ordinary income 28.8 62.7 +33.8 +118% Net income a
Slide 3: Changes in Business results (Consolidated)
Changes in Business results (Consolidated) ▸Net sales Applying the Accounting Standard ‣Net income attributable H2 (billions of yen) H2 for Revenue Recognition to owners of the Company H1 H1 2,697.8 50.0 43.6 2,500.0 40.0 2,164.0 2,074.6 1,907.4 22.7 2,000.0 1,498.2 30.0 1,745.5 1,183.7 20.0 19.6 1,
Slide 4: Effect of Profit/Loss from Market value Accounting and Temporary factors
Effect of Profit/Loss from Market value Accounting and Temporary factors (billions of yen) (-) ▸Reported ordinary income was 62.7 billion yen, but can be translated into about 67.4 billion yen after excluding one-time factors such as period-end valuation gains and losses for inventories, derivatives
Slide 5: Segment Information (consolidated)
Segment Information (consolidated) ▸Net sales （ billions of yen ） FY2020 FY2021 [2,697.8] 2,800.0 *The figures in square brackets is before 2,164.0 adoption of the Accounting Standard for Revenue 2,200.0 [1,245.4] Recognition. 1,008.1 1,745.5 1,600.0 908.7 1,000.0 [478.9] [291.3] [393.9] [132.4] [11
Slide 6: Financial Position (consolidated)
Financial Position (consolidated) Fiscal Year (ended March 31) FY2020 FY2021 Y on Y Y on Y (billions of yen) Change Rate Total assets 824.5 1,715.3 +890.8 +108% Total liabilities 632.7 1,474.8 +842.1 +133% Interst-bearing debt 301.6 722.9 +421.2 +140% Net DER 133% 235% +102pt +85% * 105% * 203% - -
Slide 7: Cash Flow Situation (consolidated)
Cash Flow Situation (consolidated) Fiscal Year (ended March 31) FY2020 FY2021 Y on Y Y on Y (billions of yen) Change Rate CF from operating activities 19.0 (280.7) (299.7) - CF from investing activities (4.1) (14.9) 0.0 (10.8) +258% FCF 14.8 (295.7) 0.0 (310.5) - CF from financing activities (34.2)
Slide 8: Business Forecast FY2022
Business Forecast FY2022 Fiscal Year (ending March 31) FY2021 FY2022 Y on Y Y on Y (billions of yen) (Actual) (Forecast) Change Rate Net Sales 2,164.0 2,400.0 +236.0 +11% Operating income 62.3 55.0 (7.3) -12% Ordinary income 62.7 50.0 (12.7) -20% Net income attributable to owners of the Company 43.6
Slide 9: Forecast of Segment Information
Forecast of Segment Information ▸Net sales FY2021 FY2022(Forecast) （billions of yen） 2,800.0 2,400.0 2,164.0 2,200.0 1,600.0 1,036.0 1,008.1 1,000.0 201.9 310.0 333.8 511.0 130.0 400.0 216.0 131.5 127.0 116.6137.0 290.7 130.2 (200.0) (49.3) (67.0) ▸Segment income 80.0 62.7 60.0 50.0 35.9 40.0 29.0 2
Slide 10: Dividend Policy
Dividend Policy 【Trend in dividend】 Interim dividends Year-end dividends Dividend payout ratio 120 30 100 100 100 (estimated) Dividend payout ratio (%) 90 Dividends (yen) 25 20 50 50 60 60 30 (9) 10 75 (12) (11) 30 50 (Dividend in 50 the red) 30 0 0 FY2019 FY2020 FY2021 FY2022(estimated) While we at
Slide 11: Steel Business Segment
Steel Business Segment Fiscal Year (ended March 31) ▸Segment income increased, because FY2020 FY2021 Y on Y transaction volume increased thanks to (billions of yen) Rate increased demand for steel, and earnings margins extended as steel prices were on a Net Sales 908.7 1,008.1 ― rising trend. Segmen
Slide 12: Primary Metal Business Segment
Primary Metal Business Segment Fiscal Year (ended March 31) Segment income increased, because transaction FY2020 FY2021 Y on Y volume of stainless steel and alloys remained (billions of yen) Rate strong as steel and non-ferrous-metal manufacturers resumed operation, and profit Net Sales 238.5 201.9
Slide 13: Metal Recycling Business Segment
Metal Recycling Business Segment Fiscal Year (ended March 31) Segment income increased, because profit FY2020 FY2021 Y on Y margin was secured by sales expansion of (billions of yen) Rate aluminum and copper as base metal prices rose globally, and transaction volume also increased Net Sales 79.5 131
Slide 14: Foods Business Segment
Foods Business Segment Fiscal Year (ended March 31) Profit margin extended, because transaction FY2020 FY2021 Y on Y volume for mass merchandise outlets increased (billions of yen) Rate and the product prices were on the rising trend. In addition, improvement of profitability in Net Sales 100.8 116.
Slide 15: Energy & Living Materials Business Segment
Energy & Living Materials Business Segment Fiscal Year (ended March 31) As market prices of crude oil and petroleum FY2020 FY2021 Y on Y products were on upward trends, revenues were Rate secured in a stable manner and transaction (billions of yen) volume of daily necessaries and household goods Net
Slide 16: Overseas Sales Subsidiaries Segment
Overseas Sales Subsidiaries Segment Fiscal Year (ended March 31) Segment income increased, because transaction FY2020 FY2021 Y on Y volume of steel increased in some countries (billions of yen) Rate including Indonesia and Singapore, and improvement in profitability of the Food Net Sales 181.4 333.8
Slide 17: Other Segment
Other Segment Fiscal Year (ended March 31) In the Lumber business, segment income FY2020 FY2021 Y on Y increased, because sales volume and products (billions of yen) Rate line mainly targeting housing manufacturers increased, and revenue of the imported lumber Net Sales 87.8 130.2 ― products increas
Slide 18: Transition of Quantitative Indicators
Transition of Quantitative Indicators Transition of Quantitative Indicators FY2020 FY2021 FY2022 \ (Forecast) Net Sales (billions of yen)* 1,745.5 2,164.0 2,400.0 Ordinary Income (billions of yen) 28.8 62.7 50.0 133% 235% Net DER* - * 105% * 203% Investment Amount (billions of yen) 15.0 (in Total)36
Slide 19: Profits of Group Companies
Profits of Group Companies 【Ordinary income trend of subsidiaries by business segment】 Fiscal Year (ended March 31) FY2020 FY2021 Y on Y Change Consolidated/ Consolidated/ Consolidated/ (billions of yen) Equity method Unconsolidated Equity method Unconsolidated Equity method Unconsolidated Steel 2.5
Slide 20: Investments in business
Investments in business 【Current investment records】 Amounts Major investments (billions of yen) ・Enhancement of processing facilities at domestic Steel 5.4 and overseas subsidiaries ・Invested in field of compound, production for Primary Metal 2.2 rechargeable batteries ・Business investment mainly t
Slide 21: Monetization of Investment
Monetization of Investment Generating steady earnings from strategic investments WATERBERG JV（Platinum group metals） ― Operations from 2024 BACANORA LITHIUM（Lithium carbonate) ― Operations from 2023/ production 18Kt/year QMB NEW ENERGY（JV with CATL, Tsingshan Holdings, etc.） （Ni and Co compoun
Slide 22: Appendix
Appendix Copyright© 2022 Hanwa Co., Ltd. All Rights Reserved 21
Slide 23: Market Trend of Steel Raw Materials
Market Trend of Steel Raw Materials 【Transaction of steel raw materials price】 (US$/t FOB) Iron ore spot price Coking coal spot price 700 iron ore benchmark price Coking coal benchmark price 600 500 400 300 200 100 0 ‣ Iron ore…The market price gradually rose from the beginning of the year, because
Slide 24: Steel Market Trend in China
Steel Market Trend in China 【Transition of steel market in China】 12,000 7,000 Production of crude steel Market inventories Market price of Rebar Market price of Hot coil Production of crude steel, market inventories 10,000 6,000 Market price (RMB/ton) 8,000 (Ten thousand ton) 5,000 6,000 4,000 4,00
Slide 25: Market Trend of Steel Scrap
Market Trend of Steel Scrap 【Steel scrap and D-bar Market Price】 Steel scrap (H2) Market price of D-bar Maker's price of D-bar Composite 140 900 Steel scrap, D-bar(thousand yen/t) 800 composite price (US$/t) 120 700 100 600 80 500 60 400 40 300 20 200 0 100 ‣ Supply/Demand… The supply-demand gap bec
Slide 26: Market Trend of Long Products
Market Trend of Long Products 【Transition of the H-Beams Markets in Japan】 130 280 Market invebtories Market price Maker's price 120 240 Price (thousand yen/ton) Volume (thousand ton) 200 110 160 100 120 90 80 80 40 0 70 ‣ Supply/Demand… Demand from the construction industry stably increased, thanks
Slide 27: Market Trend of Flat Products
Market Trend of Flat Products 【 Transition of Steel Sheets Markets in Japan 】 5,000 140 Market inventories Price of hot rolled sheet Price of hot rolled coil 130 Price (thousand yen/ton) Volume (thousand ton) 120 4,000 110 100 90 3,000 80 70 2,000 60 ‣Supply/Demand… Shipment did not increase and inv
Slide 28: Market Trend of Metals & Alloys
Market Trend of Metals & Alloys 260 7,300 FeSi($/t) 6,800 240 Nickel($10/t) 6,300 MeSi($/t) 220 (Ni, FeSi, MeSi, Stainless scrap) 5,800 5,300 Stainkess scrap($/t) 200 4,800 FeCr(￠/lb) 180 4,300 (FeCr) 3,800 160 3,300 140 2,800 2,300 120 1,800 100 1,300 800 80 ‣ Nickel…Due to concerns about a decreas
Slide 29: Market Trend of Non-ferrous Metals
Market Trend of Non-ferrous Metals 5,400 12,000 Al Zn Pb Cu 5,000 11,000 4,600 10,000 Al, Zn, Pb (（US$/t) 4,200 9,000 Cu （US$/t) 3,800 3,400 8,000 3,000 7,000 2,600 6,000 2,200 1,800 5,000 1,400 4,000 ‣Aluminum… In the aluminum market of which the biggest producer is Rusal that is located in Russia,
Slide 30: Market Trend of Frozen Marine Products
Market Trend of Frozen Marine Products 5,000 Black-Tiger Salmon Horse mackerel Mackerel 1,000 4,500 Black-Tiger （yen/1.8kg） Salmon, Hose mackerel, Mackerel 4,000 800 3,500 600 3,000 (yen/kg) 2,500 400 2,000 200 1,500 1,000 0 ‣Salmon…The market price soared thanks to the global demand increase. In ad
Slide 31: Market Trend of Crude Oil & Petroleum Products
Market Trend of Crude Oil & Petroleum Products WTI DUBAI LSA(RIM) Gasoline(RIM) Bunker oil 160 800 Gasoline (thousand yen/KL） 140 700 Crude oil ($/BL),LSA・ Bunker oil （$/t) 120 600 100 500 80 400 60 300 40 200 20 100 0 0 ‣Crude oil… The market price of petroleum rose sharply due to the intensified s