Dowa Holdings Co., Ltd. · TSE:5714
Dowa — Investor Presentation (November 2024)
29 slides from Dowa's investor presentation, Nov 18, 2024
Slide 1: Corporate Strategy Briefing
Corporate Strategy Briefing Strengthening sustainability Management November 18, 2024
Slide 2: Direction of the Dowa Group
Direction of the Dowa Group promotion of resource provision of excellent Realization of a sustainable world recycling materials and technologies Sustainable Growth Non-ferrous metals, with their diverse functions, play an important role as key materials supporting the realization of innovation, in p
Slide 3: Basic Strategy Under the Midterm Plan 2024
Basic Strategy Under the Midterm Plan 2024 - The DOWA Group defines “Strengthening sustainability management” as a basic strategy in addition to the business growth through “Evolution of recycling-oriented business model,” and will achieve improvement in both its economic value and social value by f
Slide 4: Strengthening Sustainability Management
Strengthening Sustainability Management - We will unite as a Group to steadily implement initiatives, aiming to substantively execute strategies. Development sustainability- Establishment Vision (our goal in 2030) related policy structure Integration Into Materiality identification Review of Materia
Slide 5: Establishment of Sustainability Promotion Framework
Establishment of Sustainability Promotion Framework - Improve the ability to implement and drive measures for each materiality by sharing information across the Group and consider countermeasures. Sustainability Promotion Framework Sustainability Committee DOWA HOLDINGS Members President and represe
Slide 6: Initiatives for Materiality
• Creating a resource-recycling society Initiatives for • Enhancing products and services which Materiality reduce social and environmental risks Introducing 3 themes we have focused • Responding to climate change on in the Midterm Plan 2024. • Protecting the environment • Ensuring occupational safe
Slide 7: Responding to climate change | Initiatives
Responding to climate change | Initiatives - Developing the framework to promote group-wide initiatives for responding to climate change. - Steadily making progress with the publication of our Climate Change Policy and long-term/mid-term targets, TCFD report and roadmap. - An action plan to achieve
Slide 8: Achieving Both Decarbonization and Resource Recycling
Responding to climate change | Achieving Both Decarbonization and Resource Recycling - Resource recycling needs to be accelerated for the stable supply of non-ferrous metals, which are essential for a decarbonized society. - The DOWA Group contributes to the decarbonization of society as a whole by
Slide 9: Role of Waste Treatment in Society
Responding to climate change | Role of Waste Treatment in Society - The DOWA Group is putting effort into the waste treatment business as well as the metal recycling business. - Incineration of waste is essential not only for public health and safety, but also as social infrastructure for recycling.
Slide 10: For the Formation of a Recycling-Oriented Society and the Realization of a Decarbonized Society
Responding to climate change | For the Formation of a Recycling-Oriented Society and the Realization of a Decarbonized Society - The DOWA Group is addressing to climate change by driving through both the “reduction of its own GHG emissions” and the “creation and expansion of products and services th
Slide 11: Contribution Through DOWA Green Action
Responding to climate change | Contribution Through DOWA Green Action - In May 2023, we established DOWA Green Action (DGA) and set a sales target for DGA products and services (FY2030 sales targets), in addition to its own GHG reduction target, to demonstrate internally and externally the Group’s r
Slide 12: New Business Model to Achieve Both Resource Recycling and Decarbonization
Responding to climate change | The New Business Model to Achieve Both Resource Recycling and Decarbonization Raw materials Energy - In the Environmental Management & Recycling Business, we have established an integrated system for the development and production ・We will also pursue reduction in CO2
Slide 13: Responding to climate change | Recycling and Solid Electrolytes
Responding to climate change | Role of Waste Treatment in Society Resource Decarbo recycling Solid electrolytes for all-solid-state Recycling of new kinds of metals nization lithium-ion batteries • Enhancing the recycling of nonferrous metals, which are indispensable • Developed garnet-type solid el
Slide 14: Increasing organizational power
Increasing organizational power - Securing human resources is a matter of urgency as labor force shrinks in Japan. Rural areas are experiencing more rapid population decline. => securing a labor force and create organizations in which diverse human resources play an active part in enhancing our corp
Slide 15: Initiatives within the Group (AKITA ZINC CO., LTD.)
Increasing organizational power | Initiatives within the Group (AKITA ZINC CO., LTD.) - We have been conducting activities for many years aimed at strengthening our business foundations by improving employee engagement, in pursuit of the sense of purpose advocated in our mission. - We encourage orga
Slide 16: Respect for Human Rights
Increasing organizational power | Respect for Human Rights - Respect for human rights is the foundation for creating a prosperous society and is one of the most indispensable and important initiatives to our business activities. - DOWA Group positions respect for human rights as one of its most impo
Slide 17: Driving DX (data utilization) | DOWA Transformation
Driving DX (data utilization) | DOWA Transformation - The three key measures for promoting our DX business strategy ; "Building IT infrastructure", "Strengthening information security" and "Developing DX-proficient human resources" are progressing according to plan. - We have developed more DX-profi
Slide 18: Driving DX | Initiatives and Achievements
Driving DX (data utilization) | Initiatives and Achievements - Established support centers for production technologies and information systems at key locations in Japan (Akita, Kanto, Chubu, Okayama), and provide support for the implementation of DX at the Group's key production locations. - In addi
Slide 19: Developing the Next Midterm Plan
Developing the Next Midterm Plan We are currently developing our Next Midterm Plan aimed at further strengthening integrated management based on sustainability and business strategies, for the realization of our vision. (The Next Midterm Plan will be announced in May 2025.) Aiming to be a leader in
Slide 20: Appendix
Appendix • Protecting the environment • Promoting risk management / Strengthening corporate governance • Initiatives to achieve management that is conscious of the cost of capital and share prices • FY2024 Forecasts © 2024 DOWA HOLDINGS CO., LTD. 20
Slide 21: Protecting the Environment | Biodiversity Initiatives
Protecting the Environment | Biodiversity Initiatives - We have identified key themes of particular relevance based on the Taskforce on Nature-related Financial Disclosures (TNFD) framework. - Going forward, we will conduct an evaluation of various risks based on these key themes. Examples of risks
Slide 22: Promoting Risk Management/ Strengthening Corporate Governance
Promoting Risk Management/ Strengthening Corporate Governance Promoting Risk Management Strengthening Corporate Governance - Seeking more sophisticated risk management through the risk - Continuously focus on developing and operating effective and efficient management system based on the Four Lines
Slide 23: Achieving Management Conscious of the Cost of Capital and Share Prices
Achieving Management That is Conscious of the Cost of Capital and Share Prices Analysis of current status and recognition of issues Annual trends in ROE and shareholders' equity costs % - 10 years ROE*：10.5% ⇔ Cost of equity 6%（determined using CAPM） Average over the Average over the ROE 20.0 past t
Slide 24: FY2024 Forecasts | By Segment
FY2024 Forecasts - In H1 FY2024, profits increased year-on-year due to favorable foreign exchange and metal price market conditions and firm orders for information/communication-related products and waste treatment. - Slowdown in the outlook of orders for products and services related to the automob
Slide 25: Factor Analysis of FY2024 Ordinary Income
FY2024 Forecasts | Factor Analysis of FY2024 Ordinary Income (Changes from Previous Forecasts) （billion yen） Major factors for change (FY2024 H1) Previous forecasts (FY2024) 40.0 - Under the circumstances of a weakening yen and rising prices for major metals, our profit increased by 4.9 billion yen
Slide 26: Major Market Trends (1)
FY2024 Forecasts | Major Market Trends (1) (Compared to H1 of FY2022) Environmental Management& Recycling Volume of treated waste in Japan) Volume of recycled used home electronics appliances Waste treatment orders received in Southeast Asia 140 140 160 131 120 105 107 120 108 140 116 116 100 99 101
Slide 27: Major Market Trends (2)
FY2024 Forecasts | Major Market Trends (2) (Compared to H1 of FY2022) Metal Processing Volume of sales of copper rolled products Volume of sales of copper rolled products Volume of sales of copper rolled products (for automobiles) (for information / communication equipment) from the Subsidiaries in
Slide 28: Assumptions and Sensitivities (FY2024 H2)
FY2024 Forecasts | Assumptions and Sensitivities (FY2024 H2) Sensitivity (Operating Income / FY2024 H2) Million yen Assumptions Fluctuation Sensitivity Exchange rate 145.0 ¥/$ ±1 ¥/$ 220 Copper 9,500 $/ton ±100 $/ton 10 Zinc 2,900 $/ton ±100 $/ton 300 * Exchange rate sensitivity; Nonferrous Metals B
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
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