Dowa Holdings Co., Ltd. · TSE:5714
Dowa — H1 FY2020 Earnings Presentation
31 slides from Dowa's earnings presentation, Nov 13, 2020
Slide 1: Business Results and Progress of Key Measures
Business Results and Progress of Key Measures First Half of FY2020 (FY Ending March 2021) November 13, 2020
Slide 2: Results for FY2020/H1 (1) Overview of Results
Results for FY2020/H1 (1) Overview of Results Billion yen (Amounts less than 100 million yen are omitted.) FY2019 H1 FY2020 H1 Changes Forecasts Results Results Year-on-Year From Forecasts on Aug 7 A C （C - A） （C - B） B Net Sales 230.7 227.5 252.4 21.6 9% 24.9 11% Operating Income 11.0 6.6 12.6 1.5
Slide 3: Results for FY2020/H1 (2) Factor Analysis of Ordinary Income
Results for FY2020/H1 (2) Factor Analysis of Ordinary Income Billion yen (Amounts less than 100 million yen are omitted.) FY2019/H1 12.4 Main factors for change (5.1) Equity method ・Equity method affiliates’ profits decreased year on year. income or loss ・Sales of automobile-related products and ser
Slide 4: FY2020 Full-year (1) Forecasts
FY2020 Full-year (1) Forecasts Billion yen (Amounts less than 100 million yen are omitted.) FY2019 FY2020 Changes Results Forecasts Net Sales 485.1 563.6 78.4 16% Operating Income 25.9 31.3 5.3 21% Ordinary Income 28.9 29.0 0.0 0% Profit attributable to owners of parent 17.3 12.0 (5.3) -31% Net sa
Slide 5: FY2020 Full-year (2) Forecasts by Segment
FY2020 Full-year (2) Forecasts by Segment Billion yen (Amounts less than 100 million yen are omitted.) FY2019 Results FY2020 Forecasts Changes Operating Ordinary Operating Ordinary Operating Ordinary Net Sales Net Sales Net Sales Income Income Income Income Income Income Environmental Management & 1
Slide 6: FY2020 Full-year (3) Forecasts (Assumptions and Sensitivities)
FY2020 Full-year (3) Forecasts (Assumptions and Sensitivities) Sensitivity (Operating Income / H2) Million yen Assumptions Fluctuation Sensitivity Exchange rate 105.0 ¥／$ ±1 ¥／$ 260 Copper 6,500 ＄／ｔ ±100 ＄／t 20 Zinc 2,400 ＄／ｔ ±100 ＄／t 240 Indium 160 ＄／kg ±10 ＄／kg 30 * Exchange rate sensitivity; Nonf
Slide 7: Impact of COVID-19 by segment
Impact of COVID-19 by segment 7
Slide 8: Impact of COVID-19 (1) Environmental Management & Recycling (Waste Treatment)
Impact of COVID-19 (1) Environmental Management & Recycling (Waste Treatment) Volume of treated waste (Japan) * FY2020 Ordinary Income （April 2019=100) 130 H1 H2 120 96 92 90 89 110 100 1.8 1.8 100 billion yen billion yen 90 Year on Year: -13% Year on Year: 34% 80 70 * Total of the waste treatment b
Slide 9: Impact of COVID-19 (2) Environmental Management & Recycling (Recycling)
Impact of COVID-19 (2) Environmental Management & Recycling (Recycling) Volume of recycled used home electronics appliances * FY2020 Ordinary Income （April 2019=100) 150 99 99 119 120 H1 H2 140 130 1.2 1.2 120 billion yen billion yen 110 Year on Year: 16% Year on Year: -9% 100 90 100 *For the recycl
Slide 10: Impact of COVID-19 (3) Nonferrous Metals
Impact of COVID-19 (3) Nonferrous Metals Volume of zinc produced FY2020 Ordinary Income （April 2019=100) 140 86 93 78 95 H1 H2 120 100 8.6 12.2 80 100 billion yen billion yen 60 Year on Year: 84% Year on Year: 62% 40 20 0 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 H2 下期 予想 ❚ Sales 2019 2020 ・Zinc demand
Slide 11: Impact of COVID-19 (4) Electronics Materials
Impact of COVID-19 (4) Electronics Materials Volume of silver powder sold FY2020 Ordinary Income （April 2019=100) H1 H2 140 96 106 102 111 120 1.6 1.5 100 100 billion yen billion yen Year on Year: 33% Year on Year: 27% 80 60 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 H2 下期 予想 ❚ Sales 2019 2020 ・Demand f
Slide 12: Impact of COVID-19 (5) Metal Processing
Impact of COVID-19 (5) Metal Processing Volume of sales of copper rolled products FY2020 Ordinary Income (for automobiles) （April 2019=100) 140 H1 H2 101 97 72 102 120 100 0.6 billion yen 2.9 billion yen 80 100 Year on Year: -72% Year on Year: 8% 60 40 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 下期 H2 予想
Slide 13: Impact of COVID-19 (6) Heat Treatment
Impact of COVID-19 (6) Heat Treatment Volume of carburizing treatment (Japan) FY2020 Ordinary Income （April 2019=100) 140 96 98 67 89 H1 H2 120 100 (0.7) billion yen 1.3 billion yen 80 60 100 Year on Year: (1.3) billion yen Year on Year: 87% 40 20 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 H2 下期 予想 ❚ Sa
Slide 14: Impact of COVID-19 (7) Summary
Impact of COVID-19 (7) Summary 1. Summary • Environmental management & recycling and Electronics materials showed strong performances in H1 and will remain solid in H2. • Nonferrous metals recorded a significant year-on-year increase in profit thanks to a rise in metal prices. • Demand for the Metal
Slide 15: Progress of Key Measures in Each Segment
Progress of Key Measures in Each Segment 15
Slide 16: Environmental Management & Recycling (1) Business Overview
Environmental Management & Recycling (1) Business Overview Business Environment (FY2020/H2) 《Major Product Trends》 （FY2019/H1＝100） FY2019 FY2020 ・Waste: The volume of waste generated will remain unchanged in Japan. It will decrease in Thailand, H1 H2 H1 H2 Indonesia and Singapore. Intermediated Wast
Slide 17: Environmental Management & Recycling (2) Progress of Key Measures in Midterm Plan
Environmental Management & Recycling (2) Progress of Key Measures in Midterm Plan Acquire permission to increase capacity at a site in Tochigi Expand melting/recycling Launch a site in Fukushima waste business Construct and launch Start a material pretreatment facility operation Construct a new land
Slide 18: Environmental Management & Recycling (3) Topics
Environmental Management & Recycling (3) Topics ❚ New business development in Japan Waste treatment facilities ・Expansion of the melting/recycling waste business operated by local governments A pre-treatment facility will be opened in Kanagawa in H2 of FY2021. Incinerated ash → The operating rate an
Slide 19: Nonferrous Metals (1) Business Overview
Nonferrous Metals (1) 環境・リサイクル① Business Overview Business Environment (FY2020/H2) 《Major Product Trends》 （FY2019/H1＝100） ・Metal prices, including those of precious metals FY2019 FY20 and base metals, are assumed to be higher than H1 H2 H1 H2 average in H1. Copper Production (Kosaka・Onahama) 100 103
Slide 20: Nonferrous Metals (2) Progress of Major Actions on Midterm Plan
Nonferrous Metals (2) The Progress of Major Actions on Midterm plan Increase Reduce slag loss of tin and increase the recovery production of tin by Kosaka Smelting & Capital investment for Refining high purity tin Start mass production Increase Increase collection Increase the collection volume from
Slide 21: Nonferrous Metals (3) Topics
Nonferrous Metals (3) Topics ❚ Advantages of the recycling and smelting complex Recycling raw DOWA ・Collaboration of multiple smelting processes materials → Recovery of approximately 20 types of metals. AKITA ZINC Spent catalysts High-level capacity of recovering precious metals. Concentrates ・Stabl
Slide 22: Electronics Materials (1) Business Overview
Electronics Materials (1) Business Overview Business Environment (FY2020/H2) 《Major Product Trends》 （FY2019/H1＝100） ・Solar panel installations will increase globally. FY2019 FY2020 ・Total smartphone shipments will decline. H1 H2 H1 H2 ・The number of wearable devices is increasing, LED Sales Volume 1
Slide 23: Electronics Materials (2) Progress of Key Measures in Midterm Plan
Electronics Materials (2) Progress of Key Measures in Midterm Plan Nano-Silver Powder Develop applications and build facilities for mass production launch Increase line of conductive materials Conductive Atomized Powder Develop applications and build facilities for mass production Start mass product
Slide 24: Electronics Materials (3) Topics
Electronics Materials (3) Topics ❚ Silver powder Global solar panel installations ・Demand for solar panels will be strong because new energy policies （FY2019＝100） are implemented in a range of countries. 123 ・Installations are increasing in Brazil and India in addition to China and 104 100 the Unite
Slide 25: Metal Processing (1) Business Overview
Metal Processing (1) Business Overview Business Environment (FY2020/H2) 《Major Product Trends》 （FY2019/H1＝100） ・Automobile production that remained sluggish due to FY2019 FY2020 the COVID-19 pandemic will recover sharply. H1 H2 H1 H2 ・Progress will be made in electrification and the incorporation of
Slide 26: Metal Processing (2) Progress of Key Measures in Midterm Plan
Metal Processing (2) Progress of Key Measures in Midterm Plan Copper rolled products: Enhance Invest in melting/casting and rolling facilities for increasing production production capacity of copper alloy. Consider constructing Develop new Develop new plating technologies production lines surface tr
Slide 27: Heat Treatment (1) Business Overview
Heat Treatment (1) Business Overview Business Environment (FY2020/H2) 《Major Product Trends》 （FY2019/H1＝100） ・Demand will recover rapidly in main automobile FY2019 FY2020 production areas, such as Japan, China, the H1 H2 H1 H2 United States and India, and the operating rate of the customers’ plants
Slide 28: Heat Treatment (2) Progress of Key Measures in Midterm Plan
Heat Treatment (2) Progress of Key Measures in Midterm Plan Strengthen U.S.A. the heat Acquire Start mass treatment certification production process Strengthen treatment capacity in Make investment appropriate to overseas which China Strengthen the heat treatment process demand increasing demand Exp
Slide 29: Dividend Forecasts
Dividend Forecasts The Company aims to increase dividends according to profit levels while simultaneously maintaining the stable payment of an annual dividend of 90 yen per share for the period of the Midterm Plan 2020 (FY2018 – FY2021). For FY2020, although profit attributable to owners of parent i
Slide 30: Revision of Mission, Vision, Values and Code of Conduct of the DOWA Group
Revision of Mission, Vision, Values and Code of Conduct of the DOWA Group The Group has revised its mission, vision, values and code of conduct from medium- to long-term perspectives. The vision of the DOWA Group (its goal in 2030) has been established as a guideline under which it will continuously
Slide 31: 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. 31