Dowa : Notice of Revisions of Financial Forecasts（144KB）

November 6, 2019

Dowa Holdings Co., Ltd.

Notice of Revisions of Financial Forecasts

Dowa Holdings Co., Ltd. ("the Company") has revised its first half consolidated forecasts for fiscal 2019 (April 1, 2019 to September 30, 2019) and full-year consolidated forecasts for fiscal 2019 (April 1, 2019 to March 31, 2020), which were announced on May 13, 2019, in light of the recent performance. Details are as follows:

1. Revisions of Consolidated Financial Forecasts

1. First Half Consolidated Forecasts for Fiscal 2019 (April 1, 2019 to September 30, 2019)

(Millions of Yen)

		Net Sales	Operating	Ordinary		Profit attributable to	Net Income
		Income	Income		owners of parent	per Share (Yen)
	Previous Forecasts (A)	217,000	8,500	10,800		7,500	126.72
	(Announced on May 13, 2019)
	Revised Forecasts (B)	230,700	11,070	12,450		7,900	133.48
	Change (B-A)	13,700	2,570	1,650		400
	Percentage Change (%)	6.3	30.2	15.3		5.3
	(Ref.) Previous Fiscal Year First Half Results	221,828	9,367	12,848		8,889	150.20
	(First Half of Year Ended March 31, 2019)
(2) Full-year Consolidated Forecasts for Fiscal 2019 (April 1, 2019 to March 31, 2020)	(Millions of Yen)
		Net Sales	Operating	Ordinary		Profit attributable to	Net Income
		Income	Income		owners of parent	per Share (Yen)
	Previous Forecasts (A)	455,000	24,500	30,000		20,000	337.92
	(Announced on May 13, 2019)
	Revised Forecasts (B)	480,000	24,500	30,000		20,000	337.92
	Change (B-A)	25,000	-	-		-
	Percentage Change (%)	5.5	-	-		-
	(Ref.) Previous Fiscal Year Results	452,928	18,671	24,309		14,986	253.22
	(Year Ended March 31, 2019)

2. Reasons for the Revisions

In the business environment of the Dowa Group during the first six months of the fiscal year ending March 31, 2020, demand for automotive and electronic components remained lower than the previous forecasts. Meanwhile, demand increased for products related to new energy in China. In the foreign exchange market, the yen remained strong. In terms of metal prices, those of gold and silver increased while those of zinc and copper were relatively low.

Given such background, net sales of waste treatment in the Environmental Management & Recycling segment are expected to exceed the previous forecasts. The Nonferrous Metals segment is expected to see an increase in precious metal prices and a decrease in loss due to the lowering the book value of zinc inventory. In addition, net sales in the Metal Processing and Heat Treatment segments are likely to fall from the previous forecasts.

As a result, the consolidated financial results of the Dowa Group are expected to exceed the previous forecasts. Assumptions on the financial forecasts are as follows:

	Previous Forecasts	First Half Average	Revised Forecasts
	(Announced on May		(Assumptions for the
	13, 2019)		Second Half Average)
Exchange Rates (Yen per US$)	110.0	108.6	108.0
Copper (US$ per ton)	6,400	5,956	5,700
Zinc (US$ per ton)	2,800	2,554	2,500
Indium (US$ per kg)	180	164	150

3. Consolidated Financial Forecasts by Segment

1. First Half Consolidated Forecasts for Fiscal 2019 (April 1, 2019 to September 30, 2019)

									(Billions	of Yen)
	Previous Forecasts	Revised Forecasts		Changes
	Net Sales	Operating	Ordinary	Net Sales	Operating	Ordinary	Net Sales		Operating		Ordinary
	Income	Income	Income	Income		Income		Income
Environmental	50.8	2.5	2.4	53.5	3.4	3.1	2.7		0.9		0.7
Management & Recycling
Nonferrous Metals	100.3	1.5	3.3	107.8	3.4	4.6	7.5		1.9		1.3
Electronic Materials	32.2	0.2	0.9	43.7	0.6	1.2	11.5		0.4		0.3
Metal Processing	44.3	2.8	2.9	41.5	2.4	2.5	2.7)		0.3)		0.3)
Heat Treatment	14.5	1.0	1.0	14.0	0.6	0.5	0.4)		0.3)		(0.4)
Other/ Elimination	25.1)	0.5	0.3	29.8)	0.4	0.2	4.7)		(0.0)		(0.0)
Total	217.0	8.5	10.8	230.7	11.0	12.4	13.7		2.5		1.6

(2) Consolidated Full-year Forecasts for Fiscal 2019 (April 1, 2019 to March 31, 2020)

									(Billions of Yen)
	Previous Forecasts	Revised Forecasts		Changes
	Net Sales	Operating	Ordinary	Net Sales	Operating	Ordinary	Net Sales		Operating	Ordinary
	Income	Income	Income	Income		Income	Income
Environmental	106.7	6.6	6.7	112.3	6.0	6.2	5.6		(0.6)	0.5)
Management & Recycling
Nonferrous Metals	209.3	5.9	9.5	218.9	8.6	12.4	9.6		2.7	2.9
Electronic Materials	65.6	0.7	2.6	90.8	1.0	2.3	25.2		0.3	0.3)
Metal Processing	91.7	6.6	6.8	87.2	5.1	5.3	4.5)		1.5)	1.5)
Heat Treatment	32.4	3.3	3.2	29.8	2.5	2.5	2.6)		0.8)	(0.7)
Other/ Elimination	50.7)	1.4	1.2	59.0)	1.3	1.3	8.3)		(0.1)	0
Total	455.0	24.5	30.0	480.0	24.5	30.0	25.0		0	0

(Notes)

The above values have been rounded down to the nearest second decimal place. Therefore, the total values of some segments may not be the same as the sum of the detailed values in each segment.

The forecasts included in this document are based on the information available to the Company at the time of the announcement and certain assumptions considered reasonable. Actual results may differ materially due to a range of factors.