Dowa Holdings Co., Ltd. · TSE:5714
Dowa — FY2022 Earnings Presentation
29 slides from Dowa's earnings presentation, May 19, 2023
Slide 1: Corporate Strategy Briefing
Corporate Strategy Briefing FY2022 (FY Ended March 31, 2023) May 19, 2023
Slide 2: FY2022 Results, FY2023 Forecasts
FY2022 Results, FY2023 Forecasts In FY2022, profits reached at a high level, although being impacted by falling metal prices and rising energy costs and material prices. In FY2023, sales and profits are expected to be decline, reflecting uncertainty over the future of the global economy, combined wi
Slide 3: FY2023 Forecasts Factor Analysis of Ordinary Income (Year-on-Year)
FY2023 Forecasts Factor Analysis of Ordinary Income (Year-on-Year) (billion yen) - Forex (2.3) - Metal Prices (13.2) - For Automobiles +3.2 - Fuel cell materials +0.5 - For Electronic components +1.3 - Deep-ultraviolet LEDs +0.3 - Electricity costs (8.9) - Conductive atomized powder +0.1 - Fuel cost
Slide 4: Responding to Changes in the Business Environment (1)
Responding to Changes in the Business Environment: Details of Measures and Their Monetary Impact (YoY) (1) The business environment in FY2023 is expected to be more tough, due to a weakening metals prices and further increases in energy costs, particularly electricity costs. In addition to advancing
Slide 5: Responding to Changes in the Business Environment (2)
Responding to Changes in the Business Environment: Details of Measures and Their Monetary Impact (YoY) (2) With the aim of having new products and services contribute to revenue at an early stage, accelerating various measures in R&D, manufacturing and sales, while steadily working on the investment
Slide 6: Dividends
Dividends Based on the Dividends policy under the Midterm Plan 2024, the Company has decided, taking into consideration future growth investments and our financial position at the end of fiscal year, to add special dividends of 25 yen per share in addition to the ordinary dividends of 105 yen per sh
Slide 7: Midterm Plan 2024 Strategies in Each Business
Midterm Plan 2024 Strategies in Each Business © 2023 DOWA HOLDINGS CO., LTD. 7
Slide 8: Environmental Management & Recycling (1)
Environmental Management & Recycling (1) Business Overview 《Major Product Trends》 ❚ Business Environment (FY2023) （FY2022/H1＝100） FY2022 FY2023 FY2024 - Waste processing business: Orders will be firm both in Japan and H1 H2 H1 H2 Southeast Asia. The treatment volume in melting and recycling Volume o
Slide 9: Environmental Management & Recycling (2)
Environmental Management & Recycling (2) Preparatory Business Finished Progress of Key Measures in Midterm Plan stage contribution Expanding treatment of hazardous Waste treatment Expanding treatment of fluorocarbons and other hazardous waste waste Expanding recycling Increasing the volume of recycl
Slide 10: Growth Strategy for the Indonesia Business
Environmental Management & Recycling (3) Growth Strategy for the Indonesia Business The waste treatment market in Indonesia is expected to expand further, due to the country having one of the world's largest populations and a high economic growth rate. (1) Expanding Scale of Operations Expansion of
Slide 11: Nonferrous Metals (1)
Nonferrous Metals (1) Business Overview 《Major Product Trends》 （FY2022/H1＝100） ❚ Business Environment (FY2023) FY2022 FY2023 FY2024 - Demand for zinc will be sluggish in the construction materials H1 H2 H1 H2 market, although is expected to gradually recover in the Volume of gold produced (Kosaka) 1
Slide 12: Nonferrous Metals (2)
Nonferrous Metals (2) Preparatory Business Finished Progress of Key Measures in Midterm Plan stage contribution Precious metals and copper Treating more materials for recycling Introduction Tests and development Start of operation by handling impurities of test facilities smelting Increasing the pro
Slide 13: Improved Profitability and Strengthening of the Zinc Business
Nonferrous Metals (3) Improved Profitability and Strengthening of the Zinc Business Although electricity costs will remain at a high level and the zinc business will be heavily impacted due to the large amount of electricity it consumes, we will strive to improve profitability and strengthen busines
Slide 14: Electronic Metals (1)
Electronic Metals (1) Business Overview 《Major Product Trends》 （FY2022/H1＝100） ❚ Business Environment (FY2023) FY2022 FY2023 FY2024 - The telecommunication equipment and semiconductor market is H1 H2 H1 H2 expected to recover from the second half of the year. Volume of sales of LEDs 100 64 80 88 113
Slide 15: Electronic Metals (2)
Electronic Metals (2) Preparatory Business Finished Progress of Key Measures in Midterm Plan stage contribution Increase production in response to Semiconductors Increasing production capacity of Start mass production Construction work for increasing production expanded demand short-wavelength-infra
Slide 16: Commercialization of Fuel Cell Materials
Electronic Metals (3) Commercialization of Fuel Cell Materials - The market for fuel cell batteries which react hydrogen (or ammonia) with oxygen to generate electricity will expand in an effort to achieve worldwide carbon neutrality. → In addition to practical utilization in cars, demand will also
Slide 17: Metal Processing (1)
Metal Processing (1) Business Overview 《Major Product Trends》 （FY2022/H1＝100） ❚ Business Environment (FY2023) FY2022 FY2023 FY2024 - With the shift to electrified and more intelligent automobiles, the H1 H2 H1 H2 number of automobiles production is expected to gradually Volume of sales of copper reb
Slide 18: Metal Processing (2)
Metal Processing (2) Preparatory Business Finished Progress of Key Measures in Midterm Plan stage contribution Development of new alloys and Development of new products and process optimization Sales expansion to high-voltage terminals for automotive use expanded sales tailored to customer Developme
Slide 19: Growth Strategy for the Metal Processing Business
Metal Processing (3) Growth Strategy for the Metal Processing Business ❚ Automotive Applications - The components are equipped in new cars due to model changes that occur every few years. → With the growth of electrification and the switch to EVs, demand has expanded for high-performance high voltag
Slide 20: Heat Treatment (1)
Heat Treatment (1) Business Overview 《Major Product Trends》 （FY2022/H1＝100） ❚ Business Environment (FY2023) FY2022 FY2023 FY2024 - The impact of reduced automotive production due to semiconductor H1 H2 H1 H2 and component shortages will ease into the second half of the year, Heat Treatment Sales and
Slide 21: Heat Treatment (2)
Heat Treatment (2) Preparatory Business Finished Progress of Key Measures in Midterm Plan stage contribution Facilities related to biomass power generation Developing and expanding sales of Development Demonstration testing Starting sales of mass-production furnaces Industrial furnaces new equipment
Slide 22: Utilization of Z-TKM to capture growing market
Heat Treatment (3) Utilization of Z-TKM to capture growing market Z-TKM Demonstration Unit ❚ Z-TKM Development and Market Launch Plan FY2022: Installation of demonstration unit, accumulation of operational data Start of heat treatment prototyping using customer products. FY2023: Further cost improve
Slide 23: Strengthening Sustainability Management
Progress of Midterm plan 2024 Strengthening Sustainability Management © 2023 DOWA HOLDINGS CO., LTD. 23
Slide 24: Initiatives to Strengthen Sustainability Management
Initiatives to Strengthen Sustainability Management We are steadily driving initiatives planned in the Midterm Plan 2024 in each area of sustainability to achieve our Mission and Vision. 2022 2023 目標 Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May. Sustainability Subcommittee Me
Slide 25: Responding to Climate Change
Materiality 3 Responding to Climate Change The following are scheduled for public release in May 2023 based on the two perspectives (risks and opportunities) of the TCFD recommendations. - Roadmap for achieving carbon neutrality in 2050 and meeting interim targets for greenhouse gas reductions in FY
Slide 26: Increasing organizational power: diversity, work-life balance
Materiality 6 Increasing organizational power (including promotion of diversity, work-life balance, and human resources development) Drive initiatives to enhance human capital with key initiatives of developing human resources who make changes happen and securing diverse human resources and workstyl
Slide 27: Driving Digital Transformation (DX)
Materiality 9 Driving Digital Transformation (DX) We will steadily implement initiatives that are key to the promotion of our DX business strategy, namely the development of IT infrastructure, strengthened digital security and the cultivation of DX-oriented human resources, and further promote DX on
Slide 28: (Appendix) Assumptions and Sensitivities
(Appendix) Assumptions and Sensitivities Sensitivity (Operating Income / FY2023) Million yen Assumptions Fluctuation Sensitivity Exchange rate 132.0 ¥/$ ±1 ¥/$ 610 Copper 8,500 $/ton ±100 $/ton 40 Zinc 2,800 $/ton ±100 $/ton 470 * Exchange rate sensitivity; Nonferrous Metals 500 million yen and Elec
Slide 29: 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. © 2023 DOWA HO