Outline of Financial Results

for the Fiscal Year ended March 31, 2024

May 2024

HANWA CO., LTD.

Copyright© 2024 Hanwa Co., Ltd. All Rights Reserved

  1. Summary of Financial Results
  2. Progress on Medium-Term Business Plan 2025
  3. Action to Implement Management that is Conscious of Cost of Capital and Stock Price
  4. Details by Business Segment

Copyright© 2024 Hanwa Co., Ltd. All Rights Reserved

1

1. Summary of Financial Results

Copyright© 2024 Hanwa Co., Ltd. All Rights Reserved

2

Summary of Consolidated Financial Results

  • Ordinary income for FY2023 was 48.2 bil. yen, 96% of the forecast of 50 bil. Yen.
  • For FY2024, we forecast net sales of 2,800 bil. yen (up 15% from FY2023) and ordinary income of 60 bil. yen (up 24% from FY2023).

(billions of yen)

FY2022

FY2023

Y on Y

FY2023

Rate

Results

Results

change (Rate)

Forecast

Net Sales

2,668.2

2,431.9

-236.2

2,700

90%

(-9%)

Gross Profit

128.5

119.8

-8.6

－

－

(-7%)

FY2024 Forecast

2,800

－

Operating Income

64.1

49.7

-14.3

(-22%)

Ordinary Income

64.2

48.2

-15.9

(-25%)

Net Income Attributable to

51.5

38.4

-13.0

Owners of the Company

(-25%)

Consolidated Steel Transaction

14.59

13.48

-1.11

Volume (million metric tons) *1

(-8%)

*1 Consolidated Trading volume is the simple sum of the weight of steel handled by the Company and its consolidated subsidiaries.

60 83%

  1. 96%
  1. 107%
  • －

61

60

43

－

Copyright© 2024 Hanwa Co., Ltd. All Rights Reserved

3

Segment Information (Consolidated)

（billions of yen）

Ordinary Income by Segment

64.2

3.0

7.2

48.2

11.5 3.6

Business Segments

FY2022

FY2023

Y on Y Change

(Y on Y Rate)

Steel

28.4

25.6

-2.8

(-10%)

Primary Metal

13.9

8.6

-5.2

(-38%)

Metal Recycling

6.1

1.1

-5.0

(-82%)

Main Factors

The volume handled decreased mainly due to a decline in the number of new housing starts.

The profitability of some construction projects deteriorated.

The transaction volume of stainless-steel products decreased and the prices of various products are being adjusted.

Decrease in dividend income from strategic investments.

International prices of base metals remained low.

The transaction volume decreased due to the weak demand, mainly for stainless steel scrap.

6.1

7.8

6.5

Foods

-0.9

1.3

+2.2

ー

Crab market prices have been on a gradual recovery trend, and the increase in the cost of salmon, prawns and chicken started to be sufficiently reflected in the selling prices.

1.3

13.9 1.1

8.6

28.4 25.6

-0.9

-5.2-6.4

FY2022 FY2023

Energy & Living

11.5

6.5

-5.0

Materials

(-43%)

Overseas Sales

7.2

7.8

+0.5

Subsidiaries

(+7%)

Other

3.0

3.6

+0.5

(+17%)

Adjustment

-5.2

-6.4

-1.2

(+23%)

Total

64.2

48.2

-15.9

(-25%)

Transaction volume of the products such as palm kernel shells (PKS) and wood pellet increased.

The petroleum product prices remained low.

The volume handled decreased and market prices declined in steel products and non-ferrous metal products.

Higher financial income from strategic investments.

Wood: Increase in high-margin products.

Machinery: Major projects completed.

Copyright© 2024 Hanwa Co., Ltd. All Rights Reserved

4

Quarterly Ordinary Income by Segment

Business Segments

Steel

Primary Metal

Metal Recycling

Foods

Energy & Living Materials

Overseas Sales Subsidiaries

Other

（billions of yen）

FY2022

FY2023

Y on Y

1Q

2Q

3Q

4Q

Total

1Q

2Q

3Q

4Q

Total

Change

10.1

7.7

7.6

2.8

28.4

8.4

4.9

9.6

2.6

25.6

-2.8

6.7

5.8

3.5

-2.2

13.9

4.3

2.7

-0.5

2.1

8.6

-5.2

4.9

0.4

-0.3

1.0

6.1

0.8

-0.0

0.2

0.0

1.1

-5.0

0.3

-0.5

-0.6

-0.0

-0.9

0.4

-0.6

1.2

0.2

1.3

2.2

2.8

3.8

3.7

1.1

11.5

1.3

0.1

3.6

1.4

6.5

-5.0

2.6

2.7

1.9

-0.0

7.2

2.0

2.4

2.0

1.2

7.8

0.5

1.7

0.5

0.3

0.4

3.0

1.5

0.3

0.5

1.2

3.6

0.5

Adjustment

3.8

-0.9

-5.5

-2.5

-5.2

-2.9

1.4

-1.2

-3.6

-6.4

-1.2

Total

33.3

19.6

10.7

0.5

64.2

16.0

11.4

15.4

5.3

48.2

-15.9

Copyright© 2024 Hanwa Co., Ltd. All Rights Reserved

5

Segment Ordinary Income compared to Forecast

（billions of yen）

Business

FY2023

FY2023

Rate

Main Factors

Segments

Forecast

Results

Steel

29.0

25.6

88%

The volume handled decreased.

The profitability of some construction projects deteriorated.

Primary Metal

5.7

8.6

151%

SAMANCOR's performance exceeded forecasts at the beginning of the fiscal year.

Chromium and manganese transaction volumes increased.

Metal Recycling

2.7

1.1

41%

International prices of base metals remained low.

The transaction volume decreased due to the weak demand, mainly for stainless steel scrap.

Foods

1.5

1.3

87%

Crab market prices have been on a gradual recovery trend, and the increase in the cost of salmon, prawns

and chicken started to be sufficiently reflected in the selling prices.

Energy & Living

6.8

6.5

96%

Transaction volume of the products such as palm kernel shells (PKS) and wood pellet increased.

Materials

The petroleum product prices reamined low.

Overseas Sales

The volume handled decreased and market prices declined in steel products and non-ferrous metal

9.0

7.8

87%

products.

Subsidiaries

Higher financial income from strategic investments.

Other

2.2

3.6

164%

Wood: Increase in high-margin products.

Machinery: Major projects completed.

Adjustment

-6.9

-6.4

－

Total

50.0

48.2

96%

Copyright© 2024 Hanwa Co., Ltd. All Rights Reserved

6

Impacts of Profits/Losses from

Market Value Accounting and Temporary Factors

  • Actual ordinary income was 56.2 bil. yen (down 5.1 bil. yen year on year), while accounting ordinary income was 48.2 bil. yen.
  • In FY2022, actual ordinary income was 61.3 bil. yen, while accounting ordinary income was 64.2 bil. yen.

（billions of yen）

56.2

Other

One-time

Inventory

Derivative

Foreign

Factors

Valuation

Valuation

Exchange

Valuation

Accounting

Actual

Ordinary Income

Ordinary Income

Copyright© 2024 Hanwa Co., Ltd. All Rights Reserved

7

Financial Position (Consolidated)

Mar. 2023

Mar. 2024

Change

（Rate）

Total Assets

1,157.7

1,166.9

+9.2

(+1%)

Shareholder's Equity

270.8

304.2

+33.3

(+12%)

Owner's Equity

303.1

351.2

+48.0

(+16%)

Owner's equity ratio

26.2%

30.1%

+3.9pt

(taking account of hybrid loan)

(28.3%)

(32.2%)

Interest-bearing Debt

380.9

365.4

-15.5

(-4%)

Net Interest-bearing Debt

296.7

288.9

-7.8

(-3%)

N e t D E R

98%

82%

-16pt

(taking account of hybrid loan)

(83%)

(70%)

（billions of yen）

Main Factors

Increase in electronically recorded monetary claims and investment securites

Accumulation of retained earnings Fluctuation in foreign currency translation adjustments

Redemption of commercial paper

Decrease in income taxes payable

Copyright© 2024 Hanwa Co., Ltd. All Rights Reserved

8

2. Progress on

Medium-Term Business Plan 2025

Copyright© 2024 Hanwa Co., Ltd. All Rights Reserved

9

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Hanwa Co. Ltd. published this content on 10 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 May 2024 07:24:09 UTC.