Dowa Holdings Co., Ltd. · TSE:5714
Dowa — FY2018 Earnings Presentation
23 slides from Dowa's earnings presentation, May 16, 2019
Slide 1: Business Results and Progress of Key Measures
Business Results and Progress of Key Measures FY2018 (FY Ending March 2019) May 16, 2019
Slide 2: FY2018 Consolidated Business Results Highlights
FY2018 Consolidated Business Results Highlights ■Consolidated Income Statement Billion yen FY2017 FY2018 Change Results Results Net Sales 454.7 452.9 (1.8) (0%) Operating Income 30.9 18.6 (12.2) (40%) Ordinary Income 36.3 24.3 (12.0) (33%) Profit attributable to 24.6 14.9 (9.7) (39%) owners of paren
Slide 3: Forecast for FY2019 (1)
Forecast for FY2019 (1) ■Consolidated Income Statement Billion yen FY2018 FY2019 Changes Results Forecast Net Sales 452.9 455.0 2.0 0% Operating Income 18.6 24.5 5.8 31% Ordinary Income 24.3 30.0 5.6 23% Profit attributable to owners of parent 14.9 20.0 5.0 33% In FY2019, the cost for electric power
Slide 4: Forecast for FY2019 (2) Factor Analysis of Ordinary Income
Forecast for FY2019 (2) Factor Analysis of Ordinary Income Billion yen Factors of losses Factors of gains (4.2) 9.9 30.0 2.9 1.2 Elimination of transient 1.2 Cost factors reduction and others 1.2 Increase 24.3 (1.6 ) sales of Improvement new of purchasing products Increase in (1.4 ) 3.4 conditions f
Slide 5: Review of Midterm Plan 2020
Review of Midterm Plan 2020 Changes since the plan was established Midterm FY2018 FY2019 Progress Changes in Business Environment Plan 2020 Results Forecast rate Positive factors: Opetaring （FY2020） Income 45.0 18.6 24.5 54% - Increase in metal prices (assumed in Midterm Plan: （billion yen） copper 5
Slide 6: Progress of Key Measures in Each Segment
Progress of Key Measures in Each Segment 6
Slide 7: Environmental Management & Recycling (1): Business Overview
Environmental Management & Recycling (1): Business Overview Business Environment (FY2019) 《Major Product Trends》 （FY2018 H1＝100） - Waste: The volume of waste generated is solid in FY2018 FY2019 both Japan and Southeast Asia. Oil and natural gas H1 H2 H1 H2 projects are also expected to be on a par w
Slide 8: (2): Expansion of Waste Treatment Business in Southeast Asia
(2): Expansion of Waste Treatment Business in Southeast Asia Business expansion in Southeast Asia in Midterm Plan 2020 ❚ Thailand Expand waste treatment - Existing sites - Incineration business: - Expansion of existing businesses Expected to acquire authorization for hazardous waste - New sites duri
Slide 9: (3): Strengthen Readiness for Operations in the Domestic Market
(3): Strengthen Readiness for Operations in the Domestic Market ❚ Disassembly and sorting According to tightened regulations on the import of plastic waste and metal scrap in China and Southeast Asia, the recycling of waste disassemble home electrical appliances in Japan has increased. -> Disassembl
Slide 10: Nonferrous Metals (1) Business Overview
環境・リサイクル① Nonferrous Metals (1) Business Overview Business Environment (FY2019) 《Major Product Trends》 （FY2018 H1＝100） FY2018 FY2019 - Metal prices: Copper and zinc prices are resistant to H1 H2 H1 H2 increases due to the impact of the U.S.-China trade war, Copper Production and prices for precious
Slide 11: (2): Start of Operation at Los Gatos Mine
(2): Start of Operation at Los Gatos Mine ❚ Progress Processing plant - Construction is being facilitated as planned. - Scheduled to start operating in July of FY2019. - The mine will become fully operational and begin to Pit mouth contribute to profits in FY2020. Office ❚ Overview and Features of L
Slide 12: Electronics Materials (1) Business Overview
Electronics Materials (1) Business Overview Business Environment (FY2019) 《Major Product Trends》 （FY2018 H1＝100） FY2018 FY2019 - Sales of smartphone units grow slowly. H1 H2 H1 H2 New method proximity sensors become mainstream. LED Sales Volume 100 63 58 75 - The installation of solar panels shows f
Slide 13: (2): Changes from Midterm Plan 2020 and Future Plans
(2): Changes from Midterm Plan 2020 and Future Plans ❚ Ordinary income deviates from the Midterm Plan Ordinary Income & R&D Expenses (billion yen) 12 1. Changes in the operational environment for existing products Ordinaly Income 10.5 R&D expences LED: Lifecycle of products for proximity sensors end
Slide 14: (3): Develop Applications with the Wider Wavelength Range of Infrared LEDs
(3): Develop Applications with the Wider Wavelength Range of Infrared LEDs Demand for optical sensors, which are used to measure elements such as moisture content and glucose, increases in healthcare and other fields. -> Widen the wavelength range of infrared LEDs and capture the demand. FY2019: For
Slide 15: (4): Increase Sales of Silver Powder for New and Next-generation Solar Panels
(4): Increase Sales of Silver Powder for New and Next-generation Solar Panels Number of solar panels installed around ❚ Market trend 140 the world (2017 = 100) - The number of solar panels installed is in a period of 120 Next-generation stable growth. 100 - The ratio of installation of new and next-
Slide 16: (5): Expand applications of conductive atomized powder and silver nano powder
(5): Expand applications of conductive atomized powder and silver nano powder - Given advances in IoT and 5G, electronic components are being downsized and the number of electronic components used is increasing. -> Materials require less quantity, superior adhesion and high conductivity. - DOWA’s co
Slide 17: Metal Processing (1) Business Overview
Metal Processing (1) Business Overview Business Environment (FY2019) 《Major Product Trends》 （FY2018 H1＝100） - Demand for the main products will grow due to the FY2018 FY2019 development of electrified, intelligent automobiles H1 H2 H1 H2 and multi-functional, high-speed information and Copper Alloy
Slide 18: (2): Expansion of Businesses in Global Market
(2): Expansion of Businesses in Global Market ❚ Expand sites outside Japan Metal processing business sites Expand local processing and delivery sites to respond China, Nantong Copper rolled products to the trend of Japanese manufacturers’ overseas China, Shanghai Electroplating Metal–ceramics substr
Slide 19: Heat Treatment (1) Business Overview
Heat Treatment (1) Business Overview Business Environment (FY2019) 《Major Product Trends》 （FY2018 H1＝100） - Automobile production volume increases in the FY2018 FY2019 medium and long term. Demand for heat H1 H2 H1 H2 treatment in Japan shows flat growth, but demand Heat Treatment Sales outside Japa
Slide 20: (2): Expansion of Businesses Outside Japan
(2): Expansion of Businesses Outside Japan In FY2019, make new investments to prepare for increasing demand and recover from the effects of past investments. ❚ China Key customer decided to expand their production in China. -> To prepare for increasing demand from FY2020, install new heat treatment
Slide 21: Transition of Ordinary Income
Transition of Ordinary Income 21
Slide 22: Returns to Shareholders
Returns to Shareholders DOWA regards the payment of dividends to shareholders as one of its top management priorities. The Company sets out a policy of increasing dividends as performance allows, while ensuring sufficient internal reserves for bolstering the corporate structure and expanding busines
Slide 23: 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. 23