November 10, 2023
DOWA HOLDINGS CO., LTD.
DOWA HOLDINGS CO., LTD. (“the Company”) hereby announces the differences between the first half consolidated financial forecasts for the fiscal year ending March 31, 2024 (April 1, 2023 to September 30, 2023) announced on May 12, 2023 and the actual results announced today.
Moreover, the Company has revised its full year consolidated forecasts for fiscal year ending March 31, 2024 (April 1, 2023 to March 31, 2024), which were announced on May 12, 2023, in light of the recent performance. Details are as follows:
1. Differences Between First Half Consolidated Financial Forecasts and Actual Results
(1) Differences Between First Half Consolidated Financial Forecasts for the Fiscal Year Ending March 31, 2024 and Actual Results
(April 1, 2023 to September 30, 2023)
| Net Sales | Operating Income | Ordinary Income | Profit attributable to owners of parent |
Net Income |
|
|---|---|---|---|---|---|
| (Millions of Yen) | (Millions of Yen) | (Millions of Yen) | (Millions of Yen) | (Yen) | |
| Previous Forecasts (A) (Announced on May 12, 2023) |
335,000 | 10,600 | 13,700 | 8,800 | 147.85 |
| Actual Results (B) | 370,759 | 14,263 | 21,827 | 13,185 | 221.52 |
| Change (B-A) | 35,759 | 3,663 | 8,127 | 4,385 | |
| Percentage Change (%) | 10.7 | 34.6 | 59.3 | 49.8 | |
| (Ref.) Previous Fiscal Year H1 Results (H1 of Year Ended March 31, 2023) |
401,826 | 30,044 | 36,939 | 22,736 | 382.06 |
(2) Reasons for the Differences
In the first half of the current fiscal year, although orders for certain automobile-related products and services, and sales of information and communication-related products were lower than the previous forecasts announced on May 12, 2023, sales of new forms of energy-related products increased, and orders for waste treatment- and recycling-related services remained firm. In the foreign exchange market and metal prices, the average exchange rate of the yen weakened against the U.S. dollar than the previous forecasts, but the average price of copper, silver and PGMs (platinum group metals) decreased. Regarding the cost, electricity cost was lower than the previous forecast. In addition, equity method income increased due to strong performance of overseas zinc mine operating companies and Fujita Kanko Inc.
As these results, both sales and profit increased compared to the previous forecasts.
2. Revisions of Full Year Consolidated Financial Forecasts
(1) Full Year Consolidated Financial Forecasts for the Fiscal Year Ending March 31, 2024
(April 1, 2023 to March 31, 2024)
| Net Sales | Operating Income | Ordinary Income | Profit attributable to owners of parent |
Net Income |
|
|---|---|---|---|---|---|
| (Millions of Yen) | (Millions of Yen) | (Millions of Yen) | (Millions of Yen) | (Yen) | |
| Previous Forecasts (A) (Announced on May 12, 2023) |
680,000 | 23,000 | 30,000 | 20,000 | 336.02 |
| Revised Forecasts (B) | 705,000 | 23,000 | 35,000 | 23,000 | 386.04 |
| Change (B-A) | 25,000 | 0 | 5,000 | 3,000 | |
| Percentage Change (%) | 3.7 | 0.0 | 16.7 | 15.0 | |
| (Ref.) Previous Fiscal Year Results (Year Ended March 31, 2023) |
780,060 | 44,610 | 55,501 | 25,041 | 420.76 |
(2) Reasons for the Revisions
In the business environment in the third quarter and beyond, although orders for automobile-related products and services, and sales of new forms of energy-related products will continue to be firm, sales of information and communication-related products and orders for waste treatment- and recycling-related services are expected to be lower than the previous forecasts. In the foreign exchange market and metal prices, both will remain at the same level as at the end of the second quarter of the current fiscal year. In addition, electricity cost is expected to be lower than the previous forecasts.
Taking into accounts the first half results of the current fiscal year and above-mentioned business environments, the Company's consolidated earnings forecasts for the fiscal year ending March 31, 2024 are expected to be at the same level as previous forecasts for operating income, while ordinary income and profit attributable to owners of parent are expected to exceed the previous forecasts.
(3) Consolidated Financial Forecasts by Segment
Full Year Consolidated Financial Forecasts for the Fiscal Year Ending March 31, 2024
(April 1, 2023 to March 31, 2024)
(Billions of Yen)
| Previous Forecasts | Revised Forecasts | Changes | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Net Sales | Operating Income | Ordinary Income | Net Sales | Operating Income | Ordinary Income | Net Sales | Operating Income | Ordinary Income | |
| Environmental Management & Recycling | 143.4 | 9.9 | 10.0 | 147.0 | 9.8 | 10.5 | 3.6 | (0.1) | 0.5 |
| Nonferrous Metals | 342.5 | 4.5 | 10.0 | 317.0 | 4.9 | 11.8 | (25.5) | 0.4 | 1.8 |
| Electronic Materials | 120.9 | 0.8 | 2.3 | 170.0 | 0.6 | 2.7 | 49.1 | (0.2) | 0.4 |
| Metal Processing | 114.8 | 4.4 | 4.5 | 116.0 | 4.5 | 4.9 | 1.2 | 0.1 | 0.4 |
| Heat Treatment | 33.2 | 2.8 | 3.0 | 33.0 | 2.3 | 2.9 | (0.2) | (0.5) | (0.1) |
| Other / Elimination | (74.8) | 0.6 | 0.2 | (78.0) | 0.9 | 2.2 | (3.2) | 0.3 | 2.0 |
| Total | 680.0 | 23.0 | 30.0 | 705.0 | 23.0 | 35.0 | 25.0 | 0.0 | 5.0 |
(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.
