Hanwa Co., Ltd. · TSE:8078
Hanwa — FY2010 Earnings Presentation
27 slides from Hanwa's earnings presentation, May 19, 2011
Slide 1: Financial Results for the Fiscal Year ended March 31, 2011
FINANCIAL RESULTS for the Fiscal Year ended March 31, 2011 May 19, 2011 HANWA CO., LTD. Copyright 2011 Hanwa Co., Ltd. All Rights Reserved 1
Slide 2: Overviews of Financial Results
Overviews of Financial Results • Net sales Net sales amounted 1,396.1 billion yen, increased by 25% due to economic recovery. • Net income Operating and ordinary income increased with increase in revenue. Net income was 5.7 billion yen, decreased by 50% for the previous year, due to extraordinary lo
Slide 3: Operating Results (consolidated)
Operating Results ( consolidated ) （Millions of yen） Rate of ・Transaction volume FY2010 FY2009 changes increased, because the Net sales 1,396,103 1,116,628 +25.0% operational status of users had improved. Net sales Gross profit 43,744 40,589 +7.8% increased by 25% for the SG&A expenses 29,890 29,169
Slide 4: Changes in Business results (consolidated)
Changes in Business results （ consolidated ） Net sales （100 millions of yen） 20,000 Demand is improving from Year ended 15,392 Interim period FY2009. Net sales increased 14,850 15,000 13,961 compared with the previous year. 11,166 （forecast） 10,000 Although net income decreased 9,112 due to temporal
Slide 5: Financial Position (consolidated)
Financial Position ( consolidated ) （Millions of yen） Rate of ・Total assets increased by 2011/3 2010/3 change 20.1% from end of the previous fiscal year, due to Total assets 532,797 443,444 +20.1% increase in trade receivables and inventories. Current assets 423,204 333,166 +27.0% ・Interest-bearing
Slide 6: Cash Flows Situation (consolidated)
Cash Flows Situation ( consolidated ) （Millions of yen） Net cash used in operation was 46.9 FY2010 FY2009 change billion yen due to increase in trade receivables and Cash flows from inventories. (46,948) 46,250 -93,198 Operating activities Net cash used in Cash flows from investment was 7.6 (7,610)
Slide 7: Segment Information (consolidated)
Segment Information ( consolidated ) （Millions of yen） Net sales Segment income Profit ratio Steel 693,048 9,422 1.4% Metal & alloys 124,036 2,265 1.8% Non-ferrous metals 60,026 715 1.2% Foods 80,067 1,777 2.2% Petroleum & 370,036 2,197 0.6% chemicals Total for reportable 1,327,214 16,378 1.2% segme
Slide 8: Steel Business Segment
Steel Business Segment （Millions of yen） Net sales Segment income Profit ratio 693,048 9,422 1.4% Since manufacturers' demand was healthy, steel demand increased. However, market price was vulnerable. So it was not easy in spot trade to make a profit. The future of steel demand is uncertain, relatin
Slide 9: Transaction volume in Steel Segment (unconsolidated)
Transaction volume in Steel Segment (unconsolidated) Manufacturers' operation was healthy due to economic recovery. Therefore, our transaction volume of flat products increased. Long products transaction volume was gradually increasing in spite of weak construction demand. 1,000 （million ton） Long p
Slide 10: Market Trend of Long Products
Market Trend of Long Products Construction demand was weak. At the beginning of last year, the market price of H- beams turned upward in expectation of rising raw materials prices. However, the price turned downward with increase in market inventories. In 2011, market price turned upward. But recent
Slide 11: Market Trend of Flat Products
Market Trend of Flat Products Manufacturers' operation was strong due to mainly healthy overseas demand. From this fiscal year, the long contract price were revised by half or quarter in conjunction with pricing of steel raw materials. The spot price of steel sheets turned upward at the beginning in
Slide 12: Market Trend of Steel Raw Materials
Market Trend of Steel Raw Materials The price of iron ore was vulnerable in response to demand situation, market inventories volume and future of demand in China market. Recently, the price is peaking due to excessive inventories and flagging steel products price. 【Iron Ore Market in China】 Inbentor
Slide 13: Coking coal price and contract price
From this fiscal year, the price of 【Coking coal price】 steel raw materials between mining 350 companies and steelmakers are Coking coal (US$：/FOB Australia) revised on the basis of spot price in 300 China. Thus spot price became an 250 important factor for steel pricing in the following quarter. 20
Slide 14: Markets Trend of Steel Scrap
Markets Trend of Steel Scrap The price of steel scrap was in the upward trend until the beginning of this fiscal year. Then, the price fell due to decrease in buying intention of oversea traders. In 2nd half the price turned upward due to tight supply. Electric furnace steel makers and trading compa
Slide 15: Steel Market Trend in China
Steel Market Trend in China Production level of crude steel was high. From 2nd half in FY2010, market inventories volume and market price turned upwards. After Chinese New Year, price peaked due to excessive inventories volume. Recently, although inventory adjustment advanced, future price is uncert
Slide 16: Metals & Alloys Business Segment
Metals & Alloys Business Segment （Millions of yen） Net sales Segment income Profit ratio 124,036 2,265 1.8% Although stainless steel production was reduced at one time, demand of raw materials was strong due to recovery of steel production.. （Millions of yen） 《Net sales 》 250,000 2nd half 202,019 1s
Slide 17: Market Trend of Metals & Alloys
Market Trend of Metals & Alloys The price of nickel and ferroalloys turned turbulent in response to steel and stainless steel production situation, supply and demand in China market and influx of speculative money. Stainless scrap was tight due to reduction of supply. 3,000 150 FeSi($/t) Nickel($10/
Slide 18: Non-ferrous Metals Business Segment
Non-ferrous Metals Business Segment （Millions of yen） Net sales Segment income Profit ratio 60,026 715 1.2% Although earning from recycling business decreased due to rising scrap prices, demand of copper and aluminum remained strongly. 《 Net sales》 （Millions of yen） 80,000 2nd half 65,344 1st half 6
Slide 19: Markets Trend of Non-ferrous Metals
Markets Trend of Non-ferrous Metals The price of non-ferrous metals in the LME market was on an upward trend due to recovery of demand in China and influx of speculative funds in expectation of a future rise. However, the price went down because of rekindled financial turmoil. After then, the price
Slide 20: Foods Business Segment
Foods Business Segment （Millions of yen） Net sales Segment income Profit ratio 80,067 1,777 2.2% For a long time, price and sales volume of food stayed on a low level. In FY2010, poor catches of some kinds of fish and small inventories achieved balance in supply and demand. Thus we achieved solid re
Slide 21: Market Trend of Frozen Marine Products
Market Trend of Frozen Marine Products Although demand of marine products was weak, the price remained firm due to poor catches of some kinds of fish overseas. Especially, shrimp price remained powerful , because shrimp farming was in a slump and demand in the U.S. was strong. 2,400 700 Black-Tiger
Slide 22: Petroleum & Chemicals Business Segment
Petroleum & Chemicals Business Segment （Millions of yen） Net sales Segment income Profit ratio 370,036 2,197 0.6% Crude oil price varied enormously, it was difficult to pass higher cost. Oil manufacturers' price policy caused a downturn in profitability. However, our sales in banker oil, kerosene an
Slide 23: Market Trend of Crude Oil & Petroleum Products
Market Trend of Crude Oil & Petroleum Products Although the crude oil price was on an upward trend, at the beginning of FY2010, the price went down because of rekindled of financial turmoil. After then, price market turned turbulent in response to the Middle-east situation and economic indicator. 13
Slide 24: Our Basic Policy: Resonance
Our Basic Policy “Resonance” We always see from the perspective of customers as “customer-oriented trading company” . Hereafter, with this stance, we will develop the interdepartmental cooperation and enhance the partnership with customers with a sense of togetherness. We call this policy “Resonance
Slide 25: Progress of Business Strategy
Progress of Business Strategy 【Strengthening of Domestic Business】 Expansion of domestic bases Establishment of Okinawa branch (Apr-2010) Establishment of Atsugi branch, Mito branch and Hachinohe office (Apr-2011) M&A for strengthening of function Acquisition a controlling interest of Showa Metal (A
Slide 26: Business Forecast FY2011
Business Forecast FY2011 ( year ending March 31, 2012) The future is uncertain due to depressed production activities from the Great East Japan Earthquake, decreasing demand from end of incentive package for consumption and uncertain overseas demand. We estimate domestic demand is sluggish in 1st ha
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