Dowa Holdings Co., Ltd. · TSE:5714
Dowa — FY2013 Earnings Presentation
29 slides from Dowa's earnings presentation, May 12, 2014
Slide 1: May 12, 2014
May 12, 2014 * Forward-looking statements made in this document, such as business forecasts, 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
Slide 2: 1. Overview of Fiscal 2013 Operating Results and Forecasts for Fiscal 2014
1. Overview of Fiscal 2013 Operating Results and Forecasts for Fiscal 2014 2
Slide 3: Highlights of Income Statements
Highlights of Income Statements ■Consolidated Income Statements Billion yen FY2012 Results FY2013 Results Change H1 H2 Full Year H1 H2 Full Year H1 H2 Full Year Net Sales 193.2 226.1 419.3 211.8 232.0 443.9 18.6 10% 5.9 3% 24.5 6% Operating Income 11.3 13.2 24.5 16.3 15.4 31.7 5.0 45% 2.1 17% 7.2 29
Slide 4: Business Environment
Business Environment ■Market situation Environmental Management & Recycling-related market: Waste volume remained at the same level in Japan, but expanded overseas, especially in Asia. Automotive-related market: Domestic production, including production for export, was firm and, at the end of th
Slide 5: Trends in Major Products
Trends in Major Products Indexes (100 for Q1 of FY2012) FY2012 FY2013 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Intermediate waste 100 106 110 109 115 110 119 104 processing volume in Japan Environmental Recycling materials collection Management & 100 117 130 101 110 112 119 120 volume (Kosaka) Recycling Waste proces
Slide 6: Year-on-Year Comparison by Segment
Year-on-Year Comparison by Segment Billion yen FY2012 Results FY2013 Results Change Operating Ordinary Operating Ordinary Operating Ordinary Details of Changes to Operating Income Net Sales Net Sales Net Sales Income Income Income Income Income Income - Expansion of waste treatment business, includi
Slide 7: Factor Analysis of Ordinary Income
Factor Analysis of Ordinary Income Billion yen Environmental FY2012 – FY2013 Management Nonferrous Electronic Metal Heat Other Total Metals Materials Processing Treatment & Recycling Effect of various measures, increase/ decrease in sales, etc. 2.9 (0.6) 1.0 0.5 0.6 (0.3) 4.1 Of the above, free meta
Slide 8: Financial Highlights (1)
Financial Highlights (1) ■ Consolidated Balance Sheets Billion yen March 31, March 31, March 31, March 31, Change Change 2013 2014 2013 2014 Current 133.1 131.8 (1.3) Liabilities Current Assets 171.2 173.9 2.7 Noncurrent 74.2 59.9 (14.3) Liabilities Equity 133.5 158.3 24.7 Noncurrent 178.5 184.8 6.3
Slide 9: Financial Highlights (2)
Financial Highlights (2) ■Consolidated Statements of Cash Flows Billion yen FY2012 FY2013 Change Cash Flows from Operating Activities 34.9 30.1 (4.7) Income before income taxes and minority interest 23.8 32.9 9.1 Depreciation 17.5 16.7 (0.7) Income taxes paid (3.4) (9.1) (5.7) Other, net (2.9) (10.3
Slide 10: (Ref.) Consolidated Income Statements
(Ref.) Consolidated Income Statements Million yen Previous Term (FY2012) Current Term (FY2013) Change H1 H2 Full Year H1 H2 Full Year H1 H2 Full Year Net Sales 193,242 226,147 419,390 211,885 232,099 443,985 18,642 5,951 24,594 Cost of Sales 167,652 198,311 365,963 180,698 201,381 382,079 13,045 3,0
Slide 11: (Ref.) Consolidated Balance Sheet
(Ref.) Consolidated Balance Sheet Million yen March 31, March 31, March 31, March 31, Accounts Change Accounts Change 2013 2014 2013 2014 Assets Liabilities Current Assets 171,287 173,998 2,711 Current Liabilities 133,125 131,803 (1,322) Cash and deposits 6,163 5,857 (305) Notes and accounts payable
Slide 12: (Ref.) Consolidated Statements of Cash Flows
(Ref.) Consolidated Statements of Cash Flows Million yen FY2012 FY2013 Change FY2012 FY2013 Change I. Cash Flows from Operating Activities II. Cash Flows from Investing Activities Income before income taxes and minority 23,850 32,989 9,139 Acquisition of property, plant and equipment (17,871) (16,33
Slide 13: Forecasts for Fiscal 2014
Forecasts for Fiscal 2014 Billion yen FY2013 FY2014 Change Results Forecasts Net Sales 443.9 470.0 26.0 Operating Income 31.7 36.5 4.7 Ordinary Income 35.0 38.0 2.9 Net Income 23.3 25.0 1.6 Market outlook Environmental management & recycling-related market The domestic market is expected to rema
Slide 14: Fiscal 2014 Assumptions and Sensitivities (full year)
Fiscal 2014 Assumptions and Sensitivities (full year) Sensitivity (Operating Income/Year) Million yen Assumptions Fluctuation Sensitivity ¥/$ 100.0 ¥/$ ±¥1 /$ 380 Copper 6,500 $/t ±100 $/t 30 Zinc 2,000 $/t ±100 $/t 400 Indium 600 $/kg ±100 $/kg 600 *Sensitivity is based on assumptions that the Comp
Slide 15: Year-on-Year Comparison by Segment
Year-on-Year Comparison by Segment Billion yen FY2013 Results FY2014 Forecasts Change Operating Ordinary Operating Ordinary Operating Ordinary Net Sales Net Sales Net Sales Income Income Income Income Income Income Environmental Management & 101.4 9.4 9.8 107.0 10.0 10.0 5.5 0.5 0.1 Recycling Nonfer
Slide 16: Investment
Investment Billion yen FY2011 Results FY2012 Results FY2013 Results FY2014 Forecasts Capital and Capital and Capital and Capital and R&D R&D R&D R&D stock Total stock Total stock Total stock Total investment investment investment investment investment investment investment investment Environmental M
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Slide 18: 2. Challenges in Our Business and Focus for the Futures
2. Challenges in Our Business and Focus for the Futures 18
Slide 19: Environmental Management & Recycling
Environmental Management & Recycling Outlook for FY2014 (Year-on-Year Comparison) Net Sales and Ordinary Income Waste treatment 120 Billion yen 12 Ordinary Income Net sales: 85% for H1 and 110% for H2 (Ample waste volume as a result of modest 100 Net Sales 10 improvement in business conditions.) O
Slide 20: Expanding Waste Treatment Business
Expanding Waste Treatment Business Intermediate treatment volume Japan 120 total volume for all 3 plants) (H1 of FY2012 = 100) - Increased treatment at Eco-System Chiba by 20% year-on-year, as planned, in 110 FY2013. - Maintaining high operation rates at Eco- 100 System facilities, including those
Slide 21: Nonferrous Metals
Nonferrous Metals Outlook for FY2014 (Year-on-Year Comparison) Net Sales Copper and Ordinary Income Billion yen Sales volume: 95% for H1 and 105% for H2 250 Ordinary Income 12 (Same level of domestic demand in the construction and automobile sectors) Net Sales 10 200 PGM Ordinary Income Collecti
Slide 22: Strengthening of foundation for Smelting & Refining Business
Strengthening of foundation for Smelting & Refining Business Start-up of zinc processing plant in Thailand November 2013 Construction work completed Went into full-scale operation in March 2014, following trial operation and obtaining permits and licenses. Zinc alloy for galvanized steel plate:
Slide 23: Electronic Materials
Electronic Materials Outlook for FY2014 (Year-on-Year Comparison) Net Sales and Ordinary Income Billion yen Semiconductors 100 10 Ordinary Income Net sales: 100% for H1 and 115% for H2 (Firm demand for LEDs used in sensors) Net Sales Electronic materials 80 8 Ordinary Income Sales volume of silv
Slide 24: Stronger focus on conductive materials
Stronger focus on conductive materials Silver powder sales volume Silver powder for electrode materials (FY 2011 = 100) 250 - The market will continue growing by at least 10% annually, driven by applications related to new 200 forms of energy. - Working to further expand market share by 150 expand
Slide 25: Metal Processing
Metal Processing Outlook for FY2014 (Year-on-Year Comparison) Net Sales Copper strip products and Ordinary Income Billion yen Sales volume: 105% for H1 and 100% for H2 100 Ordinary Income 8 (Firm demand for use in automobiles, driven by Net Sales overseas production; firm demand for use in 80 smar
Slide 26: Actions in Copper Alloy Strip Products Business
Actions in Copper Alloy Strip Products Business Sales volume of DOWA Metal products Future Measures and Outlook for 115 (FY2011 = 100) FY2014 110 DOWA Metal Products 105 - Develop and expand sales of performance copper alloy for 100 automobiles, especially hybrid cars and electric vehicles. - Steadi
Slide 27: Heat Treatment
Heat Treatment Net Sales Outlook for FY2014 (Year-on-Year Comparison) and Ordinary Income Billion yen Industrial furnaces 30 Ordinary Income 4 Net sales: 145% for H1 and 125% for H2 Net Sales (Firm demand for new furnaces for 25 overseas production) 3 20 Ordinary Income Heat Treatment Net Sales
Slide 28: Overseas business expansion
Overseas business expansion DOWA Thermotech Indonesia Indonesia (Introduced furnaces built by Hightemp India) - Launched heat treatment, industrial furnace installation work and maintenance business at local subsidiary in second half of FY2013. - Plan to further expand plant and increase facilities
Slide 29: Changes in ordinary income and net income
Changes in ordinary income and net income Billion yen 45 40 38.0 Environmental Management & 35.0 Recycling 35 Nonferrous Metals 30 27.2 25.0 Electronic 23.3 23.3 Materials 25 20.9 Metal 20 Processing 15.2 13.8 Heat Treatment 15 10.6 8.5 10 Net Sales 4.3 5 0 2009 2010 2011 2012 2013 2014 forecast 29