Dowa Holdings Co., Ltd. · TSE:5714
Dowa — FY2014 Earnings Presentation
31 slides from Dowa's earnings presentation, May 12, 2015
Slide 1: May 12, 2015
May 12, 2015 * 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: Overview of Fiscal 2014 Operating Results and Forecasts for Fiscal 2015
1. Overview of Fiscal 2014 Operating Results and Forecasts for Fiscal 2015 2
Slide 3: Highlights of Income Statements
Highlights of Income Statements ■Consolidated Income Statements Billion yen FY2013 Results FY2014 Results Change H1 H2 Full Year H1 H2 Full Year H1 H2 Full Year Net Sales 211.8 232.0 443.9 223.6 240.5 464.2 11.7 6% 8.4 4% 20.2 5% Operating Income 16.3 15.4 31.7 16.8 22.2 39.0 0.4 3% 6.8 44% 7.2 23%
Slide 4: Business Environment
Business Environment ■ Market situation Environmental Management & Recycling-related market: Industrial waste emissions remained flat in Japan while they grew overseas, mainly in Asia. Meanwhile, the circumstances surrounding collection competition are intensifying. Automotive-related market: Do
Slide 5: Trends in Major Products
Trends in Major Products Indexes (100 for Q1 of FY2012) FY2013 FY2014 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Intermediate waste processing 100 96 104 91 101 86 101 97 volume in Japan Environmental Recycling materials collection Management & 100 102 108 109 118 106 101 76 volume (Kosaka) Recycling Waste processing
Slide 6: Year-on-Year Comparison by Segment
Year-on-Year Comparison by Segment Billion yen FY2013 Results FY2014 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 - Income declined due to the decrease in the vol
Slide 7: Factor Analysis of Ordinary Income
Factor Analysis of Ordinary Income Billion yen Environmental FY2013 – FY2014 Nonferrous Electronic Metal Heat Management Other Total Metals Materials Processing Treatment & Recycling Effect of various measures, increase/ decrease in sales, etc. (2.4) 2.2 2.0 0.3 0.2 0.4 2.7 Of the above, free metal
Slide 8: Financial Highlights (1)
Financial Highlights (1) ■ Consolidated Balance Sheets Billion yen March 31, March 31, March 31, March 31, Change Change 2014 2015 2014 2015 Current Liabilities 131.8 118.8 (12.9) Current Assets 173.9 180.2 6.2 Noncurrent 59.9 64.7 4.7 Liabilities Equity 158.2 187.1 28.8 Noncurrent Assets 184.7 198.
Slide 9: Financial Highlights (2)
Financial Highlights (2) ■Consolidated Statements of Cash Flows Billion yen FY2013 FY2014 Change Cash Flows from Operating Activities 30.1 38.3 8.1 Income before income taxes and minority interest 32.9 41.8 8.8 Depreciation 16.7 16.0 (0.6) Income taxes paid (9.1) (13.8) (4.7) Other, net (10.3) (5.6)
Slide 10: (Ref.) Consolidated Income Statements
(Ref.) Consolidated Income Statements Million yen FY2013 FY2014 Change H1 H2 Full Year H1 H2 Full Year H1 H2 Full Year Net Sales 211,885 232,099 443,985 223,640 240,579 464,219 11,754 8,479 20,234 Cost of Sales 180,698 201,381 382,079 190,844 200,664 391,509 10,146 △ 716 9,429 Gross Profit 31,187 30
Slide 11: (Ref.) Consolidated Balance Sheet
(Ref.) Consolidated Balance Sheet March 31, March 31, March 31, March 31, Million yen Accounts Change Accounts Change 2014 2015 2014 2015 Assets Liabilities Current Assets 173,998 180,215 6,216 Current Liabilities 131,803 118,817 (12,985) Cash and deposits 5,857 8,517 2,659 Notes and accounts payabl
Slide 12: (Ref.) Consolidated Statements of Cash Flows
(Ref.) Consolidated Statements of Cash Flows Million yen FY2013 FY2014 Change FY2013 FY2014 Change I. Cash Flows from Operating Activities II. Cash Flows from Investing Activities Income before income taxes and minority interests 32,989 41,816 8,826 Acquisition of property, plant and equipment (16,3
Slide 13: (Ref.) Quarterly Business Results by Segment
(Ref.) Quarterly Business Results by Segment Billion yen FY2014 Results 1Q 2Q 3Q 4Q Net Operating Ordinary Net Operating Ordinary Net Operating Ordinary Net Operating Ordinary Sales Income Income Sales Income Income Sales Income Income Sales Income Income Environmental Management & 23.8 1.5 1.6 25.6
Slide 14: Forecasts for Fiscal 2015 (1)
Forecasts for Fiscal 2015 (1) Billion yen FY2014 FY2015 Change Results Forecasts Net Sales 464.2 445.0 (19.2) Operating Income 39.0 42.5 3.4 Ordinary Income 42.0 42.5 0.4 Net Income 26.5 27.0 0.4 * The Electronic Materials segment, particularly silver powder, will be chiefly responsible for the sale
Slide 15: Forecasts for Fiscal 2015 (2)
Forecasts for Fiscal 2015 (2) ■ Market Outlook Environmental Management & Recycling-related market: There will be no major changes in the domestic business environment. In overseas, the market is expected to grow in line with the economic growth and environmental regulations of each countries. A
Slide 16: Fiscal 2015 Assumptions and Sensitivities (full year)
Fiscal 2015 Assumptions and Sensitivities (full year) Sensitivity (Operating Income/Year) Million yen Assumptions Fluctuation Sensitivity ¥/$ 115.0 ¥/$ ±¥1 /$ 380 Copper 6,000 $/t ±100 $/t 40 Zinc 2,200 $/t ±100 $/t 500 Indium 500 $/kg ±100 $/kg 600 *Sensitivity is based on assumptions that the Comp
Slide 17: Year-on-Year Comparison by Segment
Year-on-Year Comparison by Segment Billion yen FY2014 Results FY2015 Forecasts Change Operating Ordinary Operating Ordinary Operating Ordinary Net Sales Net Sales Net Sales Income Income Income Income Income Income Environmental Management & 103.8 7.3 8.2 106.0 8.2 8.5 2.1 0.8 0.2 Recycling Nonferro
Slide 18: Investment
Investment Billion yen FY2012 Results FY2013 Results FY2014 Results FY2015 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
Slide 19: 19
19
Slide 20: Challenges in Our Business and Focus for the Future
2. Challenges in Our Business and Focus for the Futures 20
Slide 21: Environmental Management & Recycling
Environmental Management & Recycling Net Sales and Ordinary Income Outlook for FY2015 (YoY Comparison) Billion yen 120 Ordinary Income 12 Waste treatment Net Sales Net Sales: 110% for H1 and 100% for H2 100 10 (Waste emissions will remain steady as the economy will rally at a moderate pace.) 80 8
Slide 22: Enhancing Infrastructure for Domestic Business
Enhancing Infrastructure for Domestic Business Treatment volume of ■Increasing the treatment of low- low-contaminated PCB waste (H2 of FY2013 = 100) contaminated PCB waste 100 - Expanding the collection network to capture new 80 customer bases 60 - Advancing pre-treatment of equipment and taking mea
Slide 23: Nonferrous Metals
Nonferrous Metals Outlook for FY2015 (YoY Comparison) Net Sales and Ordinary Income Billion yen Copper 250 Ordinary Income 20 Sales volume: 100% for H1 and 100% for H2 Net Sales (A slightly fall in sales for domestic construction, etc.) 200 PGM 15 Collection volume of raw materials: Ordinary Inc
Slide 24: Strengthening the foundation for the Smelting & Refining Business
Strengthening the foundation for the Smelting & Refining Business ■ Participation in the Los Gatos project The Los Gatos - A feasibility study on progress Project (Zinc) (roadway construction, trial mining, etc.） => Investing USD50 million in surveys for 2014-2016 => Acquiring a 30% interest in Mine
Slide 25: Electronic Materials
Electronic Materials Net Sales and Ordinary Income Outlook for FY2015 (YoY Comparison) 100 Ordinary Income Billion yen 12 Semiconductors Net Sales Sales volume of LEDs: 100% for H1 and 100% for H2 80 10 (Demand for sensor LEDs will remain nearly flat) Electronic materials 8 60 Ordinary Income Ne
Slide 26: Enlarging the semiconductor business
Enlarging the semiconductor business Sales volume of LEDs ■Sensor LEDs (FY2012 = 100) 300 - Sensor LEDs are in brisk demand for medical equipment applications and smartphone applications. There is a 250 mounting need for sensors with lower power consumption 200 and smaller sizes. => Endeavoring to i
Slide 27: Metal Processing
Metal Processing Outlook for FY2015 (YoY Comparison) Net Sales and Ordinary Income Billion yen Copper rolled products 100 Ordinary Income 10 Sales volume: 100% for H1 and 105% for H2 Net Sales (Strong production chiefly outside Japan for automobiles 80 8 and healthy demand for computers and smartp
Slide 28: Business Expansion in Asia
Business Expansion in Asia Sales volume of copper rolled products in Asia - Steady demand for automotive and information and (H1 FY2014 = 100) communication devices 140 - Users continue to increase local production and material procurement in Asia 120 100 ■ Copper rolled products business - Launchin
Slide 29: Heat Treatment
Heat Treatment Net Sales and Ordinary Income Outlook for FY2014 (YoY Comparison) Billion yen 30 Ordinary Income 4 Industrial furnaces Net Sales Net Sales: 85% for H1 and 105% for H2 25 3 Heat Treatment 20 Ordinary Income Net Sales Net Sales: 105% for H1 and 110% for H2 15 2 (Buoyant demand for a
Slide 30: Business Expansion in Overseas Growth Areas
Business Expansion in Overseas Growth Areas India Reinforcement at locations in India - Bangalore: Building a new heat treatment plant and increasing the production capacity of the existing heat treatment facility Ahmedabad - Ahmedabad: Building a new heat treatment plant - Building a new Pune Gurga
Slide 31: Changes in Ordinary Income and Net Income
Changes in Ordinary Income and Net Income Billion yen 45 42.0 42.5 40 Ordinary Income 35.0 Environmental 35 Management & Recycling 30 27.0 Nonferrous Metals 27.2 26.5 25 23.3 20.9 Electronic Materials 20 23.3 15.2 Metal Processing 15 10.6 8.5 Heat Treatment 10 5 Net Income 0 2010 2011 2012 2013 2014