Hanwa Co., Ltd. · TSE:8078
Hanwa — H1 FY2017 Earnings Presentation
35 slides from Hanwa's earnings presentation, Nov 21, 2017
Slide 1: Interim Results for the Year Ending March 2018
With Users INTERIM RESULTS for the Year Ending March 2018 November 21, 2017 HANWA CO., LTD. Copyright© 2017 Hanwa Co., Ltd. All Rights Reserved 1
Slide 2: Operating Results (consolidated)
Operating Results ( consolidated ) With Users ・Net sales increased by 17% in the same period of the previous year, due to rise in steel products and metal resources prices . ・SG & A expenses increased by 11% compared with the same period of previous year. 3% out of 11% was accounted for newly consol
Slide 3: Changes in Business Results (consolidated)
Changes in Business results （ consolidated ） With Users Net sales increased because of a recovery in prices of natural resources. Profit attributable to owners of parent remained strong, excluding the impact of lower taxes from real estate sales in the past two fiscal years. （billions of yen） Net sa
Slide 4: Effect of Profit/Loss from Market Value Accounting and Temporary Factors
Effect of Profit /Loss from Market Value Accounting and Temporary Factors With Users Reported ordinary income was 12.3 billion yen, but can be translated into about 11.5 billion yen (compared with 10.4 billion yen one year ago) after excluding one-time factors such as period-end valuation gains and
Slide 5: Segment Information (consolidated)
Segment Information ( consolidated ) With Users Sales increased in all segments except the petroleum & chemicals segment which saw a decline in the transaction volume. The steel segment and metals & alloys segment contributed to earnings growth. Net sales Segment income （billions of yen） 1,000.0 15.
Slide 6: Financial Position (consolidated)
Financial Position ( consolidated ) With Users ・Total assets increased by 10% from the end of the previous year, due to increase in investment securities and trade receivables. ・Interest bearing debt was 14% higher compared with the end of the previous fiscal year because of increased loans payable
Slide 7: Cash Flows Situation (consolidated)
Cash Flows Situation ( consolidated ) With Users ・Cash flows from operating activities was -7.2 billion yen, due to increase in capital requirement as a sales increase. ・Cash flows from investing activities was -33.5 billion yen, due to purchase of investment securities and execution of long-term lo
Slide 8: Business Forecast FY2017 (year ending March 31, 2018)
Business Forecast FY2017 ( year ending March 31, 2018) With Users ・Net sales forecast There are no changes to the fiscal year forecast because first half sales were 49% of the forecast. ・Profit forecast Progress of the first half operating income looks slower in relation to the fiscal year forecast,
Slide 9: Forecast of Segment Information
Forecast of Segment Information With Users No changes in the forecasts for total sales and earnings based on the outlook for declines in petroleum & chemicals segment and food products segment earnings and increase in steel segment and metals & alloys segment earnings. Net sales Segment income （bill
Slide 10: Dividend Policy
Dividend Policy With Users 【Dividend Policy】 Our policy is to pay a stable dividend to shareholders. In addition, our aim is to increase the dividend based on growth in basic earnings resulting from actions to improve profitability and to reflect the level of returns from strategic investments. 10 y
Slide 11: Steel Business Segment
Steel Business Segment With Users （billions of yen） ・Net sales Rate of Without significant upsurge of demand, sales FY2016/1H FY2017/1H increased thanks to higher the transaction change volume as well as steel prices. Net sales 371.0 437.2 ＋18% ・Segment income Segment income 8.5 10.4 ＋21% Higher pri
Slide 12: Metals & Alloys Business Segment
Metals & Alloys Business Segment With Users （billions of yen・ ） Net sales Rate of Sales increased due to climbing markets of FY2016/1H FY2017/1H ferroalloys and nickel as well as sales expansion change of chrome and manganese ferroalloys and hot- Net sales 61.7 88.9 ＋44% rolled coils of stainless st
Slide 13: Non-ferrous Metals Business Segment
Non-ferrous Metals Business Segment With Users ・Net sales （billions of yen） Rate of Sales increased mainly because of higher FY2016/1H FY2017/1H prices of aluminum, copper and other change metal scrap and growth in sales of copper Net sales 37.1 45.9 ＋24% scrap. Segment income 0.5 0.4 －8% ・Segment i
Slide 14: Foods Business Segment
Foods Business Segment With Users ・Net sales （billions of yen） Rate of Prices of shrimp, crabs, salmon and other FY2016/1H FY2017/1H change major products remained high because overseas catches and inventories were low. Net sales 44.7 50.9 ＋14% Transaction volume was high as well. The Segment income
Slide 15: Petroleum & Chemicals Business Segment
Petroleum & Chemicals Business Segment With Users （billions of yen・ ）Net sales Rate of Although petroleum product prices rose slowly, FY2016/1H FY2017/1H sales were down because of downturns in spot change sales and transactions for balancing supply and Net sales 125.0 106.3 －15% demand. ・Segment in
Slide 16: Overseas Sales Subsidiaries Segment
Overseas Sales Subsidiaries Segment With Users （billions of yen） ・Net sales Rate of Higher sales were attributable to growth in FY2016/1H FY2017/1H change sales of bunker fuel in Singapore and metal scrap in Thailand, Singapore and North Net sales 82.6 110.8 ＋34% America. Segment income 0.0 0.2 ー% ・
Slide 17: Other Segment
Other Segment With Users （billions of yen） Rate of Sales and earnings decreased. Sales of FY2016/1H FY2017/1H change lumber to homebuilders and other users were strong, but segment performance one Net sales 39.6 36.9 －7% year earlier was better because of the Segment income 0.9 0.4 －58% completion o
Slide 18: Progress of Medium-term Business Plan
Progress of Medium-term Business Plan With Users The profitability of business operations is strong. There was a small increase in the debt-equity ratio as loans payable increased to meet the rising demand for working capital and funds for investments. The number of new customers in the first half w
Slide 19: Progress of Medium-term Business Plan
Progress of Medium-term Business Plan With Users Steady – First half performance was about 50% of the fiscal year forecast. Speedy – Most consolidated subsidiaries and equity-method companies are performing well. Strategic – Samancor Chrome has only a minor effect on earnings as equity-method income
Slide 20: Profits of Group Companies
Profits of Group Companies With Users First half earnings increased mainly because of the strong performances of many steel segment subsidiaries in Japan and overseas. In the metals & alloys segment, Showa Metal reported a profit following the prior fiscal year’s loss. Earnings at all subsidiaries i
Slide 21: Progress with Japan Value Chain Extension Strategy
Progress with Japan Value Chain Extension Strategy With Users Hanwa is adding small/midsize steel wholesale/processing companies to the group to implement the SOKOKA (fast delivery, small lot, processing) strategy, which encompasses the entire value chain. In this fiscal year, Kamei, Sanyo Kozai, Wi
Slide 22: "Create another Hanwa in Southeast Asia" Strategy
“Create another Hanwa in Southeast Asia” Strategy With Users Hanwa forms alliances with prominent local distribution companies and joint activities with Japanese companies to establish Hanwa’s business model in the ASEAN region. 【The major alliance partners】 Country Distributor Processer Manufacture
Slide 23: Outline of Strategic Investment
Outline of strategic investment With Users Hanwa makes natural resource investments in niche yet vital for various industries. AFARAK (Finland, South Africa, Turkey, Germany) FeCr & SiMn manufacturer(2017/1-3Q Sales Amount80 thousand ton) OM Holdings (Malaysia) FeSi & SiMn manufacturer (2017/1-3Q Sa
Slide 24: Investment in Business
Investment in Business With Users Hanwa is continuing to make business investments in this fiscal year to build a base for more earnings in the future. First half investments totaled about 20.5 billion yen, including an additional investment in Samancor Chrome and construction of the Kita-Kanto Stee
Slide 25: Appendix
With Users Appendix Copyright© 2017 Hanwa Co., Ltd. All Rights Reserved 25
Slide 26: Market Trend of Steel Raw Materials
Market Trend of Steel Raw Materials With Users Iron ore…Spot and futures prices of steel products in China has been strong along with firm iron ore prices Currently, the iron ore price is weakening due to the outlook for reduction of iron ore use because of restrictions on steel mills. Coking coal…T
Slide 27: Steel Market Trend in China
Steel Market Trend in China With Users Supply/Demand…The end of production of induction furnace steel, called ditiaogang has increased demand for legitimate products. Although steel mills are raising output, exports decreased because of firm demand for steel in China. Market price…Stopping induction
Slide 28: Markets Trend of Steel Scrap
Markets Trend of Steel Scrap With Users Supply/Demand…Steel output has increased followed by the end of the induction furnace production. China is no longer exporting billets, resulting in tight supplies of steel scrap in Asia. Market price…With supplies of scrap limited outside Japan, EAF steel mil
Slide 29: Market Trend of Long Products
Market Trend of Long Products With Users Supply/Demand…Demand is strong in the building construction and civil engineering sectors and inventories are declining gradually. In the fiscal year’s second half, demand is climbing slowly and orders to steel mills are increasing. Market price…Spot prices t
Slide 30: Market Trend of Flat Products
Market Trend of Flat Products With Users Supply/Demand…Flat product demand is firm along with a generally high level of output in the manufacturing sector. Supplies are becoming tight because furnace renovations and problems at steel mills make big production increases impossible. Market price…Price
Slide 31: Market Trend of Metals & Alloys
Market Trend of Metals & Alloys With Users Nickel…The price dropped briefly because of the resumption of nickel ore exports and flat demand in China. The price subsequently started recovering due to expectations for a recovery in demand in China and concerns about supply shortages. Ferroalloys…Risin
Slide 32: Markets Trend of Non-ferrous Metals
Markets Trend of Non-ferrous Metals With Users Aluminum…The LME price is climbing slowly and is currently gaining upward momentum. The primary reasons are plans by Chinese producers to close some plants and concerted efforts by Chinese provincial governments to cut aluminum refining capacity. Copper
Slide 33: Market Trend of Frozen Marine Products
Market Trend of Frozen Marine Products With Users Shrimp…Prices are rising in SE Asia because of the low volume of catch in this region. In Japan, prices are moving up due to low inventories. Salmon…The decline in salmon prices is slower despite the start of this season’s silver salmon imports from
Slide 34: Market Trend of Crude Oil & Petroleum Products
Market Trend of Crude Oil & Petroleum Products With Users Crude oil…The price is climbing gradually partly in response to OPEC’s production cut and hurricanes in the United States. Petroleum products…Oil companies want to raise prices to reflect the higher level of crude oil prices but demand is lac
Slide 35: For Users, With Users
With Users For Users, With Users HANWA CO., LTD. This material contains statements (including figures) regarding Hanwa Co., Ltd.(“Hanwa”)’s corporate strategies, objectives, and views of future developments that are forward-looking in nature and are not simply reiterations of historical facts. These