Dowa Holdings Co., Ltd. · TSE:5714
Dowa — FY2016 Earnings Presentation
22 slides from Dowa's earnings presentation, May 17, 2017
Slide 1: Fiscal 2016 Business Results
Fiscal 2016 Business Results May 17, 2017
Slide 2: Overview of Operating Results
Overview of Operating Results ■Consolidated Income Statements Billion yen FY2015 Results FY2016 Results Changes H1 H2 Full Year H1 H2 Full Year H1 H2 Full Year Net Sales 208.2 198.3 406.5 184.7 225.7 410.5 (23.5) △ 11% 27.4 14% 3.9 1% Operating Income 20.2 14.8 35.0 13.3 20.6 33.9 (6.9) △ 34% 5.8 39
Slide 3: Forecast for Fiscal 2017
Forecast for Fiscal 2017 Billion yen FY2016 FY2017 Change results forecast Net Sales 410.5 434.0 23.4 Operating Income 33.9 34.0 － Ordinary Income 36.5 36.5 － Net Income 26.1 26.0 (0.1) Despite some factors reducing profit, including higher depreciation expenses incurred for investment in growth,
Slide 4: Capital Investment and Depreciation Expenses
Capital Investment and Depreciation Expenses （billion yen） 29.4 30 27.9 24.9 21.8 20 18.6 15.5 15.1 15.7 10 0 2014 2015 2016 2017 forecast Captial Investment Depreciation Expenses Growth-oriented investments set forth in the Mid-Term Plan were steadily implemented and will continue in FY2017. 4
Slide 5: Return on Assets (ROA) and Return on Equity (ROE)
Return on Assets(ROA) and Return on Equity(ROE) With both total assets and net assets increasing, ROA and ROE will be maintained at high levels. *Formula ROA：Ordinary income x 100 / (Total Assets at Beginning of Period + Total Assets at End of Period) ÷ 2 ROE：Profit Attributable to Owners of Paren
Slide 6: FY2017 Outline for Each Segment and Progress of Key Measures
FY2017 Outline for Each Segment and Progress of Key Measures 6
Slide 7: Environmental Management and Recycling (1) FY2017 Outline
Environmental Management and Recycling (1) FY2017 Outline ◆Market Trends Major Product Trends （FY2015＝100） - Domestic waste emission remains flat 2015 2016 2017 - Infrastructure-related investment in soil Intermediated Waste Processing Volume in Japan 100 98 100 remediation has increased slightly -
Slide 8: Environmental Management and Recycling (2) Progress of Key Measures
Environmental Management and Recycling (2) Progress of Key Measures ◆ Expansion of Waste Treatment Business in Southeast Asia Final Disposal Intermediate Treatment Indonesia Singapore - Existing disposal facilities - New furnace scheduled to commence Steady expansion of waste collection volume opera
Slide 9: Environmental Management and Recycling (3) Progress of Key Measures
Environmental Management and Recycling (3) Progress of Key Measures ◆Promote commercialization of naturally contaminated soil remediation Features of Dry Magnetic Extraction Method Establish a track record in Treatment does not use water Treatment at contamination site treatment through small- Compa
Slide 10: Nonferrous Metals (1) FY2017 Outline
Nonferrous Metals (1) FY2017 Outline ◆Market Trends Major Product Trends （FY2015＝100） - Metal prices have remained mostly strong. 2015 2016 2017 Exchange rates are unpredictable. Copper Production - Domestic demand for base metals is flat 100 80 65 (Kosaka・Onahama) - Generation of platinum group raw
Slide 11: Nonferrous Metals (2) Progress of Key Measures
Nonferrous Metals (2) Progress of Key Measures ◆Promotion of Mining Projects: Raise percentage of zinc from Dowa’s proprietary mines to 50% Los Gatos Zinc-Silver-Lead Project: Chihuahua, Mexico December 2014: Participation in project, launched feasibility study - Added reserves and improved accuracy
Slide 12: Nonferrous Metals (3) Progress of Key Measures
Nonferrous Metals (3) Progress of Key Measures ◆Expand recycling of platinum group metals from vehicle exhaust catalyst Vehicle exhaust catalyst Collection of Raw Materials processing volume (FY2015=100) North America: Acquire collection companies and expand collection network Europe: Increase colle
Slide 13: Electronic Materials (1) FY2017 Outline
Electronic Materials (1) FY2017 Outline ◆Market Trends Major Product Trends （FY2015＝100） - Demand for sensor LEDs and smartphone 2015 2016 2017 materials is flat, applications in healthcare equipment is expanding LED Sales Volume 100 59 62 - Silver powder for solar panels increasing steadily Silver
Slide 14: Electronic Materials (2) Progress of Key Measures
Electronic Materials (2) Progress of Key Measures ◆Silver Powder: Maintain high market share on strength of supply capabilities and quality Worldwide Solar Panel Installation and Expanded Supply Capabilities 100 Predicted Adoption Volume The market will continue to expand in the current fiscal year
Slide 15: Electronic Materials (3) Progress of Key Measures
Electronic Materials (3) Progress of Key Measures ◆Development of New Products Ultraviolet LED - Expanded used in medical devices Optimize output of deep UV LEDs Expand number of Improve reliability through longer sample workpieces service life Expected to service as a replacement light source for m
Slide 16: Metal Processing (1) FY2017 Outline
Metal Processing (1) FY2017 Outline ◆Market Trends Major Product Trends （FY2015＝100） - Copper rolled products: Strong demand for 2015 2016 2017 automotive and information communication devices such as smartphones Copper Alloy Sales Volume (For Automobile) 100 105 108 - Electroplating: Increased dema
Slide 17: Metal Processing (2) Progress of Key Measures
Metal Processing (2) Progress of Key Measures ◆Expanded Sales for Vehicles Increase in electric vehicles heightened demand for high thermal resistance and high conductivity - Develop and expand sales of high-performance copper alloys and new plating for high-voltage terminals - Invest in increased
Slide 18: Metal Processing (3) Progress of Key Measures
Metal Processing (3) Progress of Key Measures ◆Expanding Business in Asia Expanding local processing and supply capabilities capture growing demand in Asia Shanghai Site Expand sales for vehicles and smartphones by leveraging strengths in cutting and plating to handle various product specification
Slide 19: Heat Treatment (1) FY2017 Outline
Heat Treatment (1) FY2017 Outline ◆Market Trends Major Product Trends （FY2015＝100） - Automotive production: Slight increase 2015 2016 2017 domestically, expanded demand overseas Heat Treatment Sales primarily in China, India and Indonesia 100 109 129 Amount - Construction machinery: Domestic and exp
Slide 20: Heat Treatment (2) Progress of Key Measures
Heat Treatment (2) Progress of Key Measures ◆Expanding Overseas Business India Healthy domestic and export demand for automotive production Ahmadabad New heat treatment plants under construction New Plant Gurgaon Plant - Ahmadabad: Start of operation in Q2 2017 - Bidadi: Start of operation in FY2018
Slide 21: Ordinary Income and Net Income
Ordinary Income and Net Income 21
Slide 22: 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. 22