Hanwa Co., Ltd. · TSE:8078
Hanwa — H1 FY2013 Earnings Presentation
27 slides from Hanwa's earnings presentation, Nov 19, 2013
Slide 1: Interim Results for the Year Ending March 2014
INTERIM RESULTS for the Year Ending March 2014 November 19, 2013 HANWA CO., LTD. Copyright 2013 Hanwa Co., Ltd. All Rights Reserved 1
Slide 2: Overview of Interim Results
Overview of Interim Results • As for the interim result for this fiscal year, net sales has reached to 790.7 billion yen, increased by 7.5%, due to increase in petroleum/chemicals and steel businesses, as well as increased number of newly joined consolidated subsidiaries. • On profit side, the inter
Slide 3: Operating Results (consolidated)
Operating Results ( consolidated ) （Millions of yen） Rate of ・Net sales has increased by 7.5% 2013/9 2012/9 changes for the same period of previous year, due to revenue growth in Net sales 790,724 735,573 +7.5% petroleum/chemicals and steel Gross profit 24,345 20,665 +17.8% businesses. In addition,
Slide 4: Changes in Business Results (consolidated)
Changes in Business results （ consolidated ） Net sales （billions of yen） The U.S. economy was healthy, there 2,000.0 Year ended Interim period was no economic turmoil in Europe, 1,564.2 1,660.0 1,511.3 but economic growth was flat in China 1,500.0 1,396.1 and emerging countries. （forecast） 1,000.0 I
Slide 5: Financial Position (consolidated)
Financial Position ( consolidated ) （Millions of yen） Rate of ・Total assets increased by 4.3% 2013/9 2013/3 change from end of the previous year, due to the rise in listed Total assets 576,438 552,908 +4.3% investment securities price and increase in inventories which Current assets 444,052 435,301
Slide 6: Cash Flows Situation (consolidated)
Cash Flows Situation ( consolidated ) （Millions of yen） Net cash provided by operation was 3.4 billion 2013/9 2012/9 change yen as cash provided by business operations more than offset a small Cash flows from increase in demand for 3,423 13,834 (10,411) Operating activities working capital. Cash flo
Slide 7: Segment Information (consolidated)
Segment Information ( consolidated ) Net sales Segment income （Millions of yen） Rate of Rate of 2013/9 2012/9 2013/9 2012/9 change change Steel 379,153 355,618 +6.6% Steel 6,061 3,941 +53.8% Metal & alloys 46,969 50,622 -7.2% Metal & alloys 1,140 1,248 -8.7% Non-ferrous Non-ferrous metals 37,330 32,
Slide 8: Steel Business Segment
Steel Business Segment （Millions of yen） Net sales Segment income Profit ratio 2013/9 379,153 6,061 1.6% 2012/9 355,618 3,941 1.1% There was strong demand for steel among manufacturers. Construction demand was higher as well because of private-sector logistics and retail projects, earthquake reconst
Slide 9: Transaction volume in Steel Segment (unconsolidated)
Transaction volume in Steel Segment (unconsolidated) Transaction volume for export was decreased 28% due to soft overseas market prices and the decision by Japanese steelmakers to focus on domestic sales. But transaction volume in Japan increased 10% mainly because of increases for long as well as f
Slide 10: Market Trend of Long Products
Market Trend of Long Products Prices of steel products rose early in 2013 but this was caused by increased costs of raw materials and electricity. Since this upturn was not backed by higher demand, prices retreated in the fiscal year’s first quarter. But prices started rebounding in the second quart
Slide 11: Market Trend of Flat Products
Market Trend of Flat Products Factory utilization rates were high but this had no effect on the spot market. As a result, the upturn in open market prices was weaker than for long products. Currently, prices have finally risen because of an upward revision in first half conditional prices and the ti
Slide 12: Market Trend of Steel Raw Materials
Market Trend of Steel Raw Materials The price of iron ore imported from China fell from the previous fiscal year. Although the price started rising in the summer of 2013 due to expectations for an economic upturn, the rebound did not last long. Inventories at ports are low and market participants ar
Slide 13: Metallurgical coal price and contract prices
The price of coking coal has been falling 【Metallurgical coal price】 along with a downturn in demand but then started climbing because of 200 Metallurgical coal (US$：/FOB Australia) expectations for an economic stimulus measures. The price started moving down again as there were no significant 150 s
Slide 14: Markets Trend of Steel Scrap
Markets Trend of Steel Scrap Although prices rose late in the prior fiscal year, prices were flat for both rebar and scrap because of a lull in sales to general contractors. Overseas demand for steel scrap is also soft as there was no significant buying by Turkey, Korea and China. Prices are current
Slide 15: Steel Market Trend in China
Steel Market Trend in China Prices rose for a while in response to expectations about government economic stimulus measures and increasing demand in the year’s second half. But steel prices are lackluster again due to the lack of any substantial increase in demand. Crude steel output remains high an
Slide 16: Metals & Alloys Business Segment
Metals & Alloys Business Segment （Millions of yen） Net sales Segment income Profit ratio 2013/9 46,969 1,140 2.4% 2012/9 50,622 1,248 2.5% Production of stainless steel continues to decline because of soft demand worldwide. Market prices are declining along with demand and earnings are down, too. A
Slide 17: Market Trend of Metals & Alloys
Market Trend of Metals & Alloys Soft stainless steel demand lowered demand for raw materials, resulting in a downturn in prices of nickel, stainless steel scrap and other stainless steel raw materials. Nickel prices will probably remain soft for a long time because of an oversupply. 3,000 160 2,500
Slide 18: Non-ferrous Metals Business Segment
Non-ferrous Metals Business Segment （Millions of yen） Net sales Segment income Profit ratio 2013/9 37,330 682 1.8% 2012/9 32,779 389 1.2% Although LME prices were weak, the yen’s decline raised yen-converted prices. Pressure on earnings continued as the smaller volume of scrap pushed up the cost of
Slide 19: Markets Trend of Non-ferrous Metals
Markets Trend of Non-ferrous Metals LME prices were up and down in response to economic news but were generally soft. Currently, prices are moving back and forth as market participants focus on the U.S. debt ceiling problem, the timing of a tapering of quantitative easing, the direction of the Chine
Slide 20: Foods Business Segment
Foods Business Segment （Millions of yen） Net sales Segment income Profit ratio 2013/9 39,361 793 2.0% 2012/9 46,109 401 0.9% Demand in Japan was sluggish. But the yen’s decline raised the price of farmed salmon, which had been falling rapidly, and the price of shrimp, which was low. Higher prices im
Slide 21: Market Trend of Frozen Marine Products
Market Trend of Frozen Marine Products The price of farmed salmon rose sharply as the yen’s decline pushed up the price of this salmon and there was a shortage of farmed salmon, too. The price has finally peaked because shipments of new produced salmon are starting to come in. Shrimp prices, which h
Slide 22: Petroleum & Chemicals Business Segment
Petroleum & Chemicals Business Segment （Millions of yen） Net sales Segment income Profit ratio 2013/9 230,911 811 0.4% 2012/9 204,236 319 0.2% Earning profits is difficult because of intense competition among sellers to end users as demand for industrial fuel remains sluggish. Delays in passing alon
Slide 23: Market Trend of Crude Oil & Petroleum Products
Market Trend of Crude Oil & Petroleum Products The price of crude oil rose slowly while responding to events in the Middle East, notably in Syria and Libya, the U.S. debt problem, and other factors. Currently, the price is declining somewhat as easing Middle East tension and the delay in the end of
Slide 24: Other Segment
Other Segment （Millions of yen） Net sales Segment income Profit ratio 2013/9 98,826 (188) (0.2%) 2012/9 82,676 673 0.8% Sales in this segment increased as lumber prices rose in response to growing shipments to meet very strong housing demand. The weaker yen further raised lumber prices. However, ear
Slide 25: Progress of QSP Business Strategy
Progress of QSP Business Strategy To reinforce the “So-Ko-Ka” Strategy, that targets fast deliveries, small transactions and processing activities, Hanwa is acquiring small and midsize steel wholesalers and processors that have valuable functions. Taiyo kozai (Apr-2010) Wholesale steel distributor D
Slide 26: Business Forecast FY2013 (year ending March 31, 2014)
Business Forecast FY2013 ( year ending March 31, 2014) The fiscal year forecast has been revised upwards because of good progress in the first half and the outlook for an increase in domestic demands in the second half. We pay 6 yen as interim dividend and plan to pay additional 6 yen as the end of
Slide 27: A Cautionary Note on Forward-looking Statement
A Cautionary Note on Forward-looking Statement 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 st