Dowa Holdings Co., Ltd. · TSE:5714
Dowa — FY2020 Earnings Presentation
33 slides from Dowa's earnings presentation, May 19, 2021
Slide 1: Business Results and Progress of Key Measures
Business Results and Progress of Key Measures FY2020 (FY Ended March 2021) May 19, 2021
Slide 2: Results for FY2020 (1) Overview of Results
Results for FY2020 (1) Overview of Results Billion yen (Amounts less than 100 million yen are omitted.) FY2019 FY2020 Changes Forecasts From Forecasts on Results Results Year-on-Year on Mar 22 Mar. 22 A C （C - A） B （C - B） Net Sales 485.1 582.8 588.0 102.8 21% 5.2 1% Operating Income 25.9 37.1 37.4
Slide 3: Results for FY2020 (2) Factor Analysis of Ordinary Income
Results for FY2020 (2) Factor Analysis of Ordinary Income Billion yen (Amounts less than 100 million yen are omitted.) FY2019 28.9 Major factors for change Equity method income or loss (5.4) - Profit decline recorded by Fujita Kanko, an equity-method affiliate (2.0) Year-end - Loss on valuation at t
Slide 4: Results for FY2020 (3) Results by Segment
Results for FY2020 (3) Results by Segment Billion yen (Amounts less than 100 million yen are omitted.) FY2019 Results FY2020 Results Changes Operating Ordinary Operating Ordinary Operating Ordinary Net Sales Net Sales Net Sales Income Income Income Income Income Income Environmental Management & 112
Slide 5: FY2021 Full-year (1) Forecasts
FY2021 Full-year (1) Forecasts Billion yen (Amounts less than 100 million yen are omitted.) FY2020 FY2021 Changes Results Forecasts Net Sales 588.0 640.0 51.9 9% Operating Income 37.4 44.0 6.5 17% Ordinary Income 37.2 50.0 12.8 34% Profit attributable to owners of parent 21.8 30.0 8.1 37% * The fore
Slide 6: FY2021 Full-year (2) Factor Analysis of Ordinary Income
FY2021 Full-year (2) Factor Analysis of Ordinary Income Billion yen (Amounts less than 100 million yen are omitted.) FY2020 37.2 Major factors for change Depreciation expenses (4.8) - Investments in growth will be continued. (2.4) Purchase conditions - Purchase conditions (T/C) for zinc raw material
Slide 7: FY2021 Full-year (3) Forecasts by Segment
FY2021 Full-year (3) Forecasts by Segment Billion yen (Amounts less than 100 million yen are omitted.) FY2020 Results FY2021 Forecasts Changes Operating Ordinary Operating Ordinary Operating Ordinary Net Sales Net Sales Net Sales Income Income Income Income Income Income Environmental Management & 1
Slide 8: Shareholder returns
Shareholder returns DOWA sets out a policy of increasing dividends as performance allows, while ensuring sufficient internal reserves for bolstering the corporate structure and expanding business in the future in line with the basic principle of maintaining stable dividends. During the Midterm Plan
Slide 9: Ref. FY2021 Forecasts (Assumptions and Sensitivities)
Ref. FY2021 Forecasts (Assumptions and Sensitivities) Sensitivity (Operating Income / FY2021) Million yen Assumptions Fluctuation Sensitivity Exchange rate 108.0 ¥／ $ ±1 ¥／$ 600 Copper 8,500 ＄／ｔ ±100 ＄／t 40 Zinc 2,500 ＄／ｔ ±100 ＄／t 420 Indium 180 ＄／kg ±10 ＄／kg 60 * Exchange rate sensitivity; Nonferro
Slide 10: Progress in Financial Aspects
Review of Midterm Plan 2020 Progress in Financial Aspects 10
Slide 11: Ordinary Income, ROA/ROE
Ordinary Income, ROA/ROE Ordinary Income ROA/ROE Billion yen (%) 70 Environmental Nonferrous Metals Electronic 13 Management & Materials ROA ROE 12 or more Recycling 60 Metal Processing Heat Other/ 12 Treatment Elimination 50.0 10.8 50 11 37.2 10 or more 10.0 10 40 36.3 8.6 9 8.4 8.5 5.7 28.9 15.0 3
Slide 12: Investment, R&D Expenses
Investment, R&D Expenses Investment R&D Expenses Billion yen Billion yen 150 25 131.1 125 20.0 110.0 20 18.9 39.2 100 91.9 15 6.3 12.6 75 42.6 10 6.3 50 49.3 5 6.3 25 0 0 FY2018 FY2019 FY2020 Midterm plan FY2018 FY2019 FY2020 Midterm plan (2 years) (3 years) 2020 (2 years) (3 years) 2020 (3 years) (
Slide 13: Progress of Key Measures in Each Segment
Progress of Key Measures in Each Segment 13
Slide 14: Environmental Management & Recycling (1) Business Overview
Environmental Management & Recycling (1) Business Overview Business Environment (FY2021) 《Major Product Trends》 （FY2020/H1＝100） FY2020 FY2021 - Waste will be generated in large quantities in Japan H1 H2 H1 H2 and in Southeast Asia. Intermediated Waste - Automobile shredder dust and waste home Treatm
Slide 15: Environmental Management & Recycling (2) Progress of Key Measures in Midterm Plan
Environmental Management & Recycling (2) Progress of Key Measures in Midterm Plan Expand melting and recycling Construct a pretreatment facility Start operation business Increase competitiveness of low-concentration PCB Increase low-contaminated PCB waste (0.5%-10%) treatment waste treatment busines
Slide 16: Strengthening of Business Response Capabilities in Japanese Market
Environmental Management & Recycling (3) Strengthening of Business Response Capabilities in Japanese Market ❚ Expand melting and recycling business Trends in melting/recycling treatment volume - Amid growing needs for recycling, the Company is (Midterm plan 2020 = 100) increasingly being commissione
Slide 17: Strengthening of Business Response Capabilities in Southeast Asia Markets
Environmental Management & Recycling (4) Strengthening of Business Response Capabilities in Southeast Asia Markets - Pharmaceutical, chemical and many other manufacturers now operate in Southeast Asia and an increasing amount of hazardous waste is generated. - Only a limited number of operators are
Slide 18: New Business Development
Environmental Management & Recycling (5) New Business Development ❚ Biogas power generation from food waste - Needs for effectively using food waste are growing. - It is difficult to recycle food waste containing packages and containers. A biogas power generation facility commenced operation in Apri
Slide 19: Nonferrous Metals (1) Business Overview
Nonferrous Metals (1) 環境・リサイクル① Business Overview Business Environment (FY2021) 《Major Product Trends》 （FY2020/H1＝100） - Metal prices: FY2020 FY2021 On the rise for both base metals and precious metals H1 H2 H1 H2 - Demand for metals: Copper Production (Kosaka・Onahama) 100 99 94 104 Expected to be s
Slide 20: Nonferrous Metals (2) Progress of Major Actions on Midterm Plan
Nonferrous Metals (2) The Progress of Major Actions on Midterm plan Increase production of tin Capital Expand sales of high-purity tin and by Kosaka investment for Start mass production High-purity tin cultivate markets for it Smelting & Refining Increase the collection volume from Launch collection
Slide 21: Expansion of PGM Recovery Business
Nonferrous Metals (3) Expansion of PGM Recovery Business Trend in treatment volume in PGM recovery business In FY2020, the collection and treatment volume (Midterm Plan 2020 = 100) 120 surpassed 1,000 tons a month amid brisk demand. → Keep the collection and treatment volume at a 100 high level in t
Slide 22: Actions in Zinc Business
Nonferrous Metals (4) Actions in Zinc Business Institute measures for improving capabilities to deal with different zinc materials - Los Gatos Mine: Implement year-round full production of zinc concentrate for Akita Zinc with a view to stabilize earnings. - Akita Zinc: Embarking on further increase
Slide 23: Electronic Materials (1) Business Overview
Electronic Materials (1) Business Overview Business Environment (FY2021) 《Major Product Trends》 （FY2020/H1＝100） - As smartphone sales volume rallies and expands, FY2020 FY2021 the new type of proximity sensors is becoming H1 H2 H1 H2 the mainstream. LED Sales Volume 100 96 139 181 - Solar panel inst
Slide 24: Electronic Materials (2) Progress of Key Measures in Midterm Plan
Electronic Materials (2) Progress of Key Measures in Midterm Plan Conductive Atomized Powder Develop applications and Expand sales build facilities for mass Start mass production production for telecommunications equipment Fuel Cell Materials Increase line of Develop applications and prepare for Bui
Slide 25: Expansion to Automobiles, Telecommunications, Medical and Healthcare Markets
Electronic Materials (3) Expansion to Automobiles, Telecommunications, Medical and Healthcare Markets ❚ Conductive atomized powder Trends in Conductive atomized powder sales volume Mass production and sales were started in April 2019 (Midterm plan 2020 = 100) for MLCC applications. 120 The Company i
Slide 26: Expansion to New Energy Fields
Electronic Materials (4) Expansion to New Energy Fields Global solar panel installations ❚ Silver powder (2018 = 100) * Source: DOWA 180 Strong demand for solar panels due to new energy policies in 160 various countries 140 → Step up activities for developing silver powder answering 120 100 demand f
Slide 27: Metal Processing (1) Business Overview
Metal Processing (1) Business Overview Business Environment (FY2021) 《Major Product Trends》 （FY2020/H1＝100） - The shift of automobiles to electric power and FY2020 FY2021 intelligence advances. H1 H2 H1 H2 - Telecommunication devices support increasing functions and faster communication. Copper Allo
Slide 28: Metal Processing (2) Progress of Key Measures in Midterm Plan
Metal Processing (2) Progress of Key Measures in Midterm Plan Invest in melting and casting facilities Copper rolled for increasing production Start operation products: Enhance production capacity of copper Invest in rolling and other facilities for increasing production alloy China Construct a new
Slide 29: Actions in Anticipation of Medium- and Long-Term Market Growth
Metal Processing (3) Actions in Anticipation of Medium- and Long-Term Market Growth ❚ Copper rolled products Japan: Investments made in increasing production of high performance copper alloys - Melting and casting facilities started operation. - New rolling facilities under construction towards inau
Slide 30: Heat Treatment (1) Business Overview
Heat Treatment (1) Business Overview Business Environment (FY2021) 《Major Product Trends》 （FY2020/H1＝100） - Automobile production volume is turning around FY2020 FY2021 in Japan and overseas after slowing due to the H1 H2 H1 H2 COVID-19 pandemic. Heat Treatment Sales Amount 100 154 145 156 Industria
Slide 31: Heat Treatment (2) Progress of Key Measures in Midterm Plan
Heat Treatment (2) Progress of Key Measures in Midterm Plan Promote automation and Introduce automatic conveyor systems to labor-saving at key factories factories in Japan U.S.A. Strengthen the heat treatment Acquire certification Start mass production process China Strengthen treatment capacity Str
Slide 32: Demand Changes in a Shift towards Realization of Carbon-Free Society
Heat Treatment (3) Demand Changes in a Shift towards Realization of Carbon-Free Society ❚ Carmakers speed up CO2 emission cuts (1) The production ratio of EVs, HVs and PHVs rises. → An EV has a smaller number of parts. However, demand for heat treatment will grow in line with the increase in automob
Slide 33: 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. 33