Hanwa Co., Ltd. · TSE:8078
Hanwa — H1 FY2011 Earnings Presentation
25 slides from Hanwa's earnings presentation, Nov 15, 2011
Slide 1: Interim Results for the Year Ending March 2012
INTERIM RESULTS for the Year Ending March 2012 November 15, 2011 HANWA CO., LTD. Copyright 2011 Hanwa Co., Ltd. All Rights Reserved 1
Slide 2: Overview of Interim Results
Overview of Interim Results • Compared with the same period of last year, our interim net sales has increased by 17.8% and reached 762.6 billion yen, thanks to steady business result from steel and petroleum/chemical segments, as well as contributions from newly consolidated subsidiaries. Although o
Slide 3: Operating Results (consolidated)
Operating Results ( consolidated ) （Millions of yen） Rate of 2011/9 2010/9 ・Increased sales amount by 17.8%: changes Our business in steel and Net sales 762,648 647,172 +17.8% petroleum/chemical segments showed steady progress after Gross profit 25,837 21,519 +20.1% economic stagnation caused by the
Slide 4: Changes in Business Results (consolidated)
Changes in Business results （ consolidated ） Net sales （billions of yen） 2,000.0 Despite foreseen downturn of Year ended 1,539.2 Interim period improving demand from FY2009 due 1,485.0 1,500.0 1,396.1 to the Great East Japan Earthquake, 1,116.6 manufacturing industry sector （forecast） 1,000.0 recove
Slide 5: Financial Position (consolidated)
Financial Position ( consolidated ) （Millions of yen） Rate of ・Total assets increased by 2011/9 2011/3 3.5% from end of the previous change year, due to increase in trade Total assets 551,663 532,797 +3.5% receivables and inventories. Current assets 441,832 423,204 +4.4% ・Interest-bearing debt sligh
Slide 6: Cash Flows Situation (consolidated)
Cash Flows Situation ( consolidated ) （Millions of yen） Net cash provided by operation was 3.7 billion 2011/9 2010/9 change yen due to increase in operating revenue.. Cash flows from Net cash used in 3,736 (30,532) +34,268 Operating activities investment was 6.1 billion yen due to Cash flows from pa
Slide 7: Segment Information (consolidated)
Segment Information ( consolidated ) Net sales Segment income （Millions of yen） Rate of Rate of 2011/9 2010/9 2011/9 2010/9 change change Steel 366,600 336,859 +8.8% Steel 4,366 4,567 -4.4% Metal & alloys 68,349 59,980 +14.0% Metal & alloys 2,305 1,784 +29.2% Non-ferrous Non-ferrous metals 33,553 27
Slide 8: Steel Business Segment
Steel Business Segment （Millions of yen） Net sales Segment income Profit ratio 2011/9 366,600 4,366 1.2% 2010/9 336,859 4,567 1.4% After economic stagnation by the Great East Japan Earthquake, Operational level mainly in manufacturing industries has rapidly recovered. In addition, demands for constr
Slide 9: Transaction Volume in Steel Segment (unconsolidated)
Transaction volume in Steel Segment (unconsolidated) We were concerned the decreased volume of our transaction would be brought by the Great East Japan Earthquake, but volume increased due to rapid recovery of manufacturing sector and strong demand for long products for construction and engineering.
Slide 10: Market Trend of Long Products
Market Trend of Long Products At the beginning of this year, although rising prices of raw materials turned market price of H- beams upward, price peaked out as a result of increased market inventories caused by the sluggish demands after the Great East Japan Earthquake. In this September, market pr
Slide 11: Market Trend of Flat Products
Market Trend of Flat Products Just like H-beams, the price of steel sheets softened from upward trend before the Great East Japan Earthquake. Market inventories increased due to downturn of operating ratio in manufacturing industries. We expected rapid advancement of inventory adjustment, however, a
Slide 12: Market Trend of Steel Raw Materials
Market Trend of Steel Raw Materials The price of imported iron ore in China was at high levels until this September. After then, the price dropped sharply due to financial regulations and flagging steel products price. Recently it slightly improved. 【Iron Ore Market in China】 200 150 100 Iron ore sp
Slide 13: Metallurgical Coal Price and Contract Prices
Once floods in Australia pushed up price 【Metallurgical coal price】 of metallurgical coal, it has peaked out. In August, declined demand and 350 Metallurgical coal (US$：/FOB Australia) financial regulation has accelerated 300 downward trend further. 250 Prices of various crude steel raw materials fr
Slide 14: Markets Trend of Steel Scrap
Markets Trend of Steel Scrap The price of steel scrap was in the upward trend in the beginning of this fiscal year. Then, the price fell due to decreased demand in domestic and oversea traders. In 1st half, supply and demand balanced at low-level, thus the price moved in narrow ranges. In August, so
Slide 15: Steel Market Trend in China
Steel Market Trend in China Production level of crude steel was high and market inventories volume was in excess. Recently, steel market is weakening, due to concern about impact of EU economic stagnation on Chinese manufacturing industry and to decrease in demand of construction and engineering fro
Slide 16: Metals & Alloys Business Segment
Metals & Alloys Business Segment （Millions of yen） Net sales Segment income Profit ratio 2011/9 68,349 2,305 3.4% 2010/9 59,980 1,784 3.0% Stainless steel production was reduced due to supply-demand adjustment. However, raw materials demand was healthy because of rapid recovery of steel production b
Slide 17: Market Trend of Metals & Alloys
Market Trend of Metals & Alloys The price of ferroalloys was weakening, but remained stable on the high price level. The price of stainless scrap and nickel fell sharply in response to change of the financial environment and production adjustment due to reduction of stainless steel demand. 3,000 160
Slide 18: Non-ferrous Metals Business Segment
Non-ferrous Metals Business Segment （Millions of yen） Net sales Segment income Profit ratio 2011/9 33,553 1,587 4.7% 2010/9 27,256 705 2.6% After economic stagnation by the Great East Japan Earthquake, demand of non-ferrous metals for automotive production rapidly recovered. As a result, our transac
Slide 19: Markets Trend of Non-ferrous Metals
Markets Trend of Non-ferrous Metals Movement of speculative funds affected the price of non-ferrous metals in the LME market more than real demand trend. Metals traded in small market size was more vulnerable. Recently, the price went down because of financial instability in EU. 3,000 11,000 Al Zn 1
Slide 20: Foods Business Segment
Foods Business Segment （Millions of yen） Net sales Segment income Profit ratio 2011/9 46,231 949 2.1% 2010/9 40,885 1,018 2.5% Overseas seafood market remained strong. In domestic market, price of seafood stayed on a high level due to outlook for poor catches influenced by earthquake. Thus our sales
Slide 21: Market Trend of Frozen Marine Products
Market Trend of Frozen Marine Products The price remained firm except salmon. World seafood consumption was expanding. But large expansion of fish catches cannot be expected. As a result, seafood price remained at a high level. 2,400 800 Black-Tiger Salmon 2,200 House mackerel 700 Mackerel （Salmon、H
Slide 22: Petroleum & Chemicals Business Segment
Petroleum & Chemicals Business Segment （Millions of yen） Net sales Segment income Profit ratio 2011/9 203,348 1,328 0.7% 2010/9 149,401 712 0.5% After the confusion in the wake of earthquake, demand for petroleum product was low. However, Our sales in industrial and bunker fuel were steady. Demand f
Slide 23: Market Trend of Crude Oil & Petroleum Products
Market Trend of Crude Oil & Petroleum Products The crude oil price was up and down under the influence of change of financial environment and U.S. economic trend. The price of petroleum products rose after earthquake, but turned downward to pre-earthquake level due to supply recovery by increases in
Slide 24: Business Forecast FY2011 (year ending March 31, 2012)
Business Forecast FY2011 ( year ending March 31, 2012) In 1st half, operating revenue reached better than the expectation thanks to the early recovery of demand. The forecast is uncertain due to caused to decline in demand, such as uncertainty over the EU economy, financial regulation in China and f
Slide 25: A Cautionary Note on Forward-looking Statement
A Cautionary Note on Forward-looking Statement This material contains statements (including figures) regarding Hanwa Co.,Ltd.(“Hanwa”)’s corporate strategies, objectives, and views of future developments that are forward-looking in nature and are not simply reiterations of historical facts. These st