Dowa Holdings Co., Ltd. · TSE:5714
Dowa — H1 FY2023 Earnings Presentation
28 slides from Dowa's earnings presentation, Nov 16, 2023
Slide 1: Corporate Strategy Briefing
Corporate Strategy Briefing First Half of FY2023 (FY Ending March 2024) November 16, 2023
Slide 2: FY2023 Forecasts
FY2023 Forecasts In H1 FY2023, sales and profits decreased year-on-year due to the impact of falling metal prices and rising electricity costs. In H2, although sales of automobile-related products and services are expected to increase, sales and profits are expected to decrease year-on-year due to t
Slide 3: Factor Analysis of FY2023 Ordinary Income (Changes from Previous Forecasts)
Factor Analysis of FY2023 Ordinary Income (Changes from Previous Forecasts) （billion yen) Previous forecasts Major factors for change (FY2023 H1 ) (FY2023) 30.0 - 8.1 billion yen increase due to sales expansion of silver powder, lower unit price of electricity, decrease in loss from lower of cost or
Slide 4: Major Market Trends (1) (Compared to Q1 of FY2021)
Major Market Trends (1) (Compared to Q1 of FY2021) Volume of treated waste (Japan) Volume of collected recycling materials Volume of zinc produced 120 120 120 106 100 102 99 100 101 99 107 101 103 95 110 105 100 100 100 105 97 102 100 93 94 100 101 101 100 91 88 86 74 100 83 80 71 94 94 92 80 55 90
Slide 5: Major Market Trends (2) (Compared to Q1 of FY2021)
Major Market Trends (2) (Compared to Q1 of FY2021) Volume of sales of LEDs Volume of sales of copper rolled products Volume of carburizing treatment (for automobiles) 260 120 140 240 223 127 220 102 100 120 100 99 99 96 96 200 100 94 93 93 120 114 115 171 110 111 180 166 109 156 152 85 104 103 149 1
Slide 6: Midterm Plan 2024 Strategies in Each Business
Midterm Plan 2024 Strategies in Each Business © 2023 DOWA HOLDINGS CO., LTD. 6
Slide 7: Environmental Management & Recycling (1) Business Overview
Environmental Management & Recycling (1) Business Overview 《Major Product Trends》 ❚ Overview of FY2023/H2 (comparison with H1) （FY2022/H1＝100） FY2022 FY2023 FY2024 - Orders for waste treatment business, melting and recycling business, Midterm and the recycling business in Japan and overseas are firm
Slide 8: Environmental Management & Recycling (2) Progress of Key Measures
Environmental Management & Recycling (2) Preparatory Business update Finished Progress of Key Measures in Midterm Plan stage contribution Expanding treatment of hazardous Waste treatment Expanding treatment of fluorocarbons and other hazardous waste waste Expanding recycling Increasing the volume of
Slide 9: Strengthening Business Operations in the Kyushu Region
Environmental Management & Recycling (3) Strengthening Business Operations in the Kyushu Region ❚ Launching new recycling business base - Kyushu region: Japan's leading semiconductor and automobile production base, and a leading region for solar power generation. Industrial production is expected to
Slide 10: Nonferrous Metals (1) Business Overview
Nonferrous Metals (1) Business Overview 《Major Product Trends》 （FY2022/H1＝100） ❚ Overview of FY2023/H2 (comparison with H1) FY2022 FY2023 FY2024 Midterm - Due to falling PGM prices, the amount of spent catalysts in H1 H2 H1 H2 Plan circulation will decrease. Volume of gold produced (Kosaka) 100 94 7
Slide 11: Nonferrous Metals (2) Progress of Key Measures
Nonferrous Metals (2) Preparatory Business update Finished Progress of Key Measures in Midterm Plan stage contribution Precious metals and copper Treating more materials for recycling Introduction Tests and development Start of operation by handling impurities of test facilities smelting Increasing
Slide 12: Initiatives to Strengthen Metal Recycling at Kosaka Smelting & Refining
Nonferrous Metals (3) Initiatives to Strengthen Metal Recycling at Kosaka Smelting & Refining ❚ Changes in business environment - The amount of recycling materials generated is growing, especially in emerging countries, while content of precious metals is declining. - Demand for metals derived from
Slide 13: Electronic Materials (1) Business Overview
Electronic Materials (1) Business Overview 《Major Product Trends》 （FY2022/H1＝100） ❚ Overview of FY2023/H2 (comparison with H1) FY2022 FY2023 FY2024 - Demand for silver powder is recovering due to the expansion of the Midterm H1 H2 H1 H2 Plan solar panel market and adoption of newly developed product
Slide 14: Electronic Materials (2) Progress of Key Measures
Electronic Materials (2) Preparatory Business update Finished Progress of Key Measures in Midterm Plan stage contribution Increase production in response to Semiconductors Start mass production Construction work for increasing production Increasing production capacity of expanded demand short-wavele
Slide 15: Initiatives to Strengthen the Business Structure
Electronic Materials (3) initiatives to Strengthen the Business Structure ● Existing products Current profits image ● New products ❚ Expansion of sales of existing products Energy Healthcare Aim to increase profitability by expanding sales to existing markets and expanding Fuel cell materials Short-
Slide 16: Metal Processing (1) Business Overview
Metal Processing (1) Business Overview 《Major Product Trends》 （FY2022/H1＝100） ❚ Overview of FY2023/H2 (comparison with H1) FY2022 FY2023 FY2024 Midterm - For automobiles : Production of copper rolled products for H1 H2 H1 H2 Plan automobiles is continuing to operate at a high level due to an Volume
Slide 17: Metal Processing (2) Progress of Key Measures
Metal Processing (2) Preparatory Business Update Finished Progress of Key Measures in Midterm Plan stage contribution Development of new alloys and Development of new products and process optimization Sales expansion to high-voltage terminals for automotive use expanded sales tailored to customer De
Slide 18: Expansion of Business in Asia (Copper Rolled Products, Precious Metal Plating)
Metal Processing (3) Expansion of Business in Asia (Copper Rolled Products, Precious Metal Plating) ❚ Business expansion in Thailand Profits transition of Thailand business (FY2019=100) 200 Thailand : Export processing base in Southeast Asia for Japanese manufacturers. 150 - Expand business by stead
Slide 19: Heat Treatment (1) Business Overview
Heat Treatment (1) Business Overview 《Major Product Trends》 （FY2022/H1＝100） ❚ Overview of FY2023/H2 (comparison with H1) FY2022 FY2023 FY2024 Midterm - Orders for heat treatment processing are expected to continue in a H1 H2 H1 H2 Plan recovering due to the increase in automobile production. Heat Tr
Slide 20: Heat Treatment (2) Progress of Key Measures
Heat Treatment (2) Preparatory Business Update Finished Progress of Key Measures in Midterm Plan stage contribution Facilities related to biomass power generation Developing and expanding sales of Development Demonstration testing Starting sales of mass-production furnaces Industrial furnaces new eq
Slide 21: Enhancing Products and Services That Contribute to Achieve Carbon Neutrality
Heat Treatment (3) Enhancing Products and Services That Contribute to Achieve Carbon Neutrality ❚ Z-TKM - Next-generation heat treatment furnace that can reduce CO2 emissions Demonstrating testing and Launch of mass- design of mass-production production furnace within the heat treatment process by 6
Slide 22: Strengthening Sustainability Management
Progress of Midterm plan 2024 Strengthening Sustainability Management © 2023 DOWA HOLDINGS CO., LTD. 22
Slide 23: Initiatives for strengthening sustainability management
Initiatives for strengthening sustainability management Making steady progress towards strengthen sustainability management for resolving the DOWA Group’s Materiality. Materiality Main activities in FY2023/H1 - Announced FY2030 contribution target and a roadmap for responding to climate change towar
Slide 24: Responding to Climate Change
Responding to Climate Change May 2023 : Announced FY2030 contribution target and a roadmap for responding to climate change toward carbon neutrality. - Formulated intermediate targets and roadmaps for FY2030 to achieve carbon neutrality by 2050. - Defined DOWA products and services that contribute t
Slide 25: Achieving management that is conscious of the cost of capital and share prices
Achieving management that is conscious of the cost of capital and share prices - The company recognize the need to analyze profitability over a certain period due to the nature of our business, in which profits in a single fiscal year fluctuate greatly depending on external conditions such as exchan
Slide 26: Dividends
Dividends - Although we expect a year-on-year decline in sales and profits for FY2023, the dividend for this fiscal year will be 110 yen per share, a 5-yen increase in the ordinary dividend from the previous fiscal year based on the dividend policy. - Based on our capital management policy, we will
Slide 27: (Appendix) Assumptions and Sensitivities
(Appendix) Assumptions and Sensitivities Sensitivity (Operating Income / FY2023 H2) Million yen Assumptions Fluctuation Sensitivity Exchange rate 146.0 ¥/$ ±1 ¥/$ 210 Copper 7,900 $/ton ±100 $/ton 20 Zinc 2,400 $/ton ±100 $/ton 260 * Exchange rate sensitivity; Nonferrous Metals 160 million yen and E
Slide 28: 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. © 2023 DOWA HO