Hanwa Co., Ltd. · TSE:8078
Hanwa — H1 FY2012 Earnings Presentation
26 slides from Hanwa's earnings presentation, Nov 19, 2012
Slide 1: Interim Results for the Year Ending March 2013
INTERIM RESULTS for the Year Ending March 2013 November 19, 2012 HANWA CO., LTD. Copyright 2012 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 decreased by 3.6% and reached 735.5 billion yen, due to decline in steel and metal prices. • our interim net income was 87 million yen, mainly due to contraction of profit margins and extraordinary lo
Slide 3: Operating Results (consolidated)
Operating Results ( consolidated ) （Millions of yen） Rate of 2012/9 2011/9 changes ・Net sales amount has decreased by 3.6% for the same period of Net sales 735,573 762,648 -3.6% previous year. In Steel, metals/alloys and non-ferrous Gross profit 20,665 25,837 -20.0% metals businesses, sales prices S
Slide 4: Changes in Business Results (consolidated)
Changes in Business results （ consolidated ） Net sales （billions of yen） 2,000.0 Year ended Although demand had been Interim period recovering, as this fiscal year began, 1,564.2 1,486.0 1,500.0 1,396.1 exports from China slowed because 1,116.6 of the prolonged economic slump in （forecast） 1,000.0 E
Slide 5: Financial Position (consolidated)
Financial Position ( consolidated ) （Millions of yen） Rate of ・Total assets decreased by 2012/9 2012/3 7.6% from end of the previous change year, due to decrease in trade Total assets 538,217 582,404 -7.6% receivables and inventories. Current assets 428,782 467,982 -8.4% ・Interest-bearing debt decre
Slide 6: Cash Flows Situation (consolidated)
Cash Flows Situation ( consolidated ) （Millions of yen） Net cash provided by operation was 13.8 2012/9 2011/9 change billion yen due to decrease in trade receivables and Cash flows from inventories. 13,834 3,736 +10.098 Operating activities Net cash used in Cash flows from investment was 2.5 (2,557)
Slide 7: Segment Information (consolidated)
Segment Information ( consolidated ) Net sales Segment income （Millions of yen） Rate of Rate of 2012/9 2011/9 2012/9 2011/9 change change Steel 355,618 366,600 -3.0% Steel 3,941 4,366 -9.7% Metal & alloys 50,622 68,349 -25.9% Metal & alloys 1,248 2,305 -45.9% Non-ferrous Non-ferrous metals 32,779 33
Slide 8: Steel Business Segment
Steel Business Segment （Millions of yen） Net sales Segment income Profit ratio 2012/9 355,618 3,941 1.1% 2011/9 366,600 4,366 1.2% Although significant earthquake recovery demand has not yet emerged, there were substantial orders mainly for civil engineering and small to midsize buildings, which are
Slide 9: Transaction volume in Steel Segment (unconsolidated)
Transaction volume in Steel Segment (unconsolidated) Market conditions were difficult due to a sluggish spot market and a lackluster overseas steel market, but our sales volumes of both long and flat products were higher than one year earlier. Our handling volume of steel scrap, which is included in
Slide 10: Market Trend of Long Products
Market Trend of Long Products In 2012, inventories for spot markets increased as output climbed due to expectations for earthquake reconstruction demand. However, since there was no significant increase in spot market demand, market prices decreased with almost no interruption. As inventories has gr
Slide 11: Market Trend of Flat Products
Market Trend of Flat Products Inventories decreased at a moderate pace but spot market prices were soft because of lackluster demand. In the second half, there are concerns about weakening market conditions due to expectations for lower automobile production and a decline in operating rates at manuf
Slide 12: Market Trend of Steel Raw Materials
Market Trend of Steel Raw Materials China’s measures to restrain the economy along with flat demand for Chinese products in Europe caused the price of iron ore imported by China to fall about US$50 in the first half. Although there was initially little reduction in inventories, market prices have be
Slide 13: Metallurgical coal price and contract prices
Following the end of the strike in 【Metallurgical coal price】 Australia, the price of coking coal has plunged because of weak demand in 300 China. Metallurgical coal (US$：/FOB Australia) 250 Quarterly prices with term commitments 200 with mining companies have declined again following the small incr
Slide 14: Markets Trend of Steel Scrap
Markets Trend of Steel Scrap For steel scrap, overseas prices were weak as buyers in Turkey, Korea, China and other countries were reluctant to purchase scrap. Steel scrap prices were low in Japan too as weak exports made it easier for EAF steelmakers to buy scrap. The price briefly rose in August d
Slide 15: Steel Market Trend in China
Steel Market Trend in China Crude steel output has remained high even after the decline in steel prices and there is still no correction in output. There are also signs of excessive inventories. Market prices have been climbing since October, but the outlook is unclear because the winter season of w
Slide 16: Metals & Alloys Business Segment
Metals & Alloys Business Segment （Millions of yen） Net sales Segment income Profit ratio 2012/9 50,622 1,248 2.5% 2011/9 68,349 2,305 3.4% Stainless steel manufacturers have slashed output in response to weak global demand. Prices for raw materials have dropped as demand declined. With sales volumes
Slide 17: Market Trend of Metals & Alloys
Market Trend of Metals & Alloys Due to weak stainless steel demand, demand for raw materials decreased and resulted in price declines for nickel, ferroalloys and all other raw materials. The price of nickel rebounded in September but is currently retreating. 3,000 160 (Ni, FeSi, MeSi, Stainless scra
Slide 18: Non-ferrous Metals Business Segment
Non-ferrous Metals Business Segment （Millions of yen） Net sales Segment income Profit ratio 2012/9 32,779 389 1.2% 2011/9 33,553 1,587 4.7% Demand was relatively strong, mainly for automobiles, and the scrap sales volume was higher, too. But the higher cost of procurement caused by the falling amoun
Slide 19: Markets Trend of Non-ferrous Metals
Markets Trend of Non-ferrous Metals LME prices fluctuated with declining trend due to speculative trading associated with shifts in the financial climate. In September, expectations fueled by U.S. monetary easing and China’s approval of infrastructure investments sparked a rebound in prices. But LME
Slide 20: Foods Business Segment
Foods Business Segment （Millions of yen） Net sales Segment income Profit ratio 2012/9 46,109 401 0.9% 2011/9 46,231 949 2.1% Demand in Japan is sluggish. Prices of farmed salmon plummeted in the previous fiscal year and continued to fall in the first half. This caused sales prices and volumes of oth
Slide 21: Market Trend of Frozen Marine Products
Market Trend of Frozen Marine Products Prices of farmed salmon continued to fall in the current fiscal year but the downturn has finally stopped. The international price for shrimp was low because of global economic weakness but is currently rebounding due to tightening supplies caused by the chemic
Slide 22: Petroleum & Chemicals Business Segment
Petroleum & Chemicals Business Segment （Millions of yen） Net sales Segment income Profit ratio 2012/9 204,236 319 0.2% 2011/9 203,348 1,328 0.7% Demand was weak overall but collaboration with subsidiaries supported higher sales of diesel oil. Last year, there was a temporary contribution to earnings
Slide 23: Market Trend of Crude Oil & Petroleum Products
Market Trend of Crude Oil & Petroleum Products The price of crude oil was declining because of financial instability in Europe, but situation in the Middle East and national disasters like the U.S. hurricane led the price rebounded in the second quarter. Although wholesale prices of petroleum produc
Slide 24: Progress of Business Strategy
Progress of Business Strategy 【Strengthening of Domestic Business】 Expansion of domestic bases Establishment of Okayama branch (Apr-2012) Opening of Hanwa Logistics Sakai and Hanwa Logistics Kyushu (Apr-2012) M&A for strengthening of function Acquisition ownership of Kaneki Co., Ltd. (Aug-2012) Acqu
Slide 25: Business Forecast FY2012 (year ending March 31, 2013)
Business Forecast FY2012 ( year ending March 31, 2013) First half performance fell below the initial outlook mainly because of falling markets. In the second half, the operating environment is extremely unclear. Major causes include the situation in Europe, operating rates in Japan in the automobile
Slide 26: 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