News release

Notice of Revisions of Financial Forecasts

October 29, 2018
DOWA HOLDINGS CO., LTD.

DOWA HOLDINGS CO., LTD. (“the Company”) has revised its first half consolidated forecasts for fiscal 2018 (April 1, 2018 to September 30, 2018) and full-year consolidated forecasts for fiscal 2018 (April 1, 2018 to March 31, 2019), which were announced on May 11, 2018, in light of the recent performance. Details are as follows:

1. Revisions of Consolidated Financial Forecasts

(1) First Half Consolidated Forecasts for Fiscal 2018 (April 1, 2018 to September 30, 2018)

(Millions of Yen)

  Net Sales Operating Income Ordinary Income Profit attributable to owners of parent

Net Income
per Share (Yen)

Previous Forecast (A)
(Announced on May 11, 2018)
229,000 14,500 17,500 12,500 211.20
Revised Forecast (B) 221,800 9,300 12,800 8,800 148.69
Change (B-A) (7,200) (5,200) (4,700) (3,700)  
Percentage Change (%) (3.1%) (35.9%) (26.9%) (29.6%)  

(Ref.) Previous Fiscal Year First Half Results
(First Half of Year Ended March 31, 2018)

219,302 14,672 17,258 11,733 198.24

(2) Full-year Consolidated Forecasts for Fiscal 2018 (April 1, 2018 to March 31, 2019)

(Millions of Yen)

  Net Sales Operating Income Ordinary Income Profit attributable to owners of parent

Net Income
per Share (Yen)

Previous Forecast (A)
(Announced on May 11, 2018)  
475,000 32,000 38,000 26,500 447.75
Revised Forecast (B) 455,000 24,500 30,000 21,000 354.82
Change (B-A) (20,000) (7,500) (8,000) (5,500)  
Percentage Change (%) (4.2%) (23.4%) (21.1%) (20.8%)  

(Ref.) Previous Fiscal Year Results
(Year Ended March 31, 2018)

454,754 30,948 36,355 24,693 417.21

2. Reasons for the Revisions

In the business environment of DOWA Group for the first half of fiscal 2018, the exchange rate was on par with the initial assumption, but the price of metals such as copper and zinc declined sharply. In addition, due to the impact of loss by lower of cost or market method on raw material inventories at the end of first half, the Company expects earnings lower than the previous forecast, mainly in Nonferrous metal segment.
The Company also revised the second half forecast on the premise that the current level of metal prices will continue.
Assumptions on the financial forecasts are as follows:

 

Previous Forecast
(Announced on May 11, 2018)

First Half Average

Revised Forecast
(Assumptions for the Second Half Average)

Exchange Rates
(Yen per US$)
110.0 110.3 110.0
Copper (US$ per ton) 7,000 6,487 6,200
Zinc (US$ per ton) 3,200 2,824 2,600
Indium (US$ per kg) 350 286 250

3. Consolidated Financial Forecasts by Segment

(1) First Half Consolidated Forecasts for Fiscal 2018 (April 1, 2018 to September 30, 2018)

(Billions of Yen)

  Previous Forecast Revised Forecast Changes
Net Sales Operating Income Ordinary Income Net Sales Operating Income Ordinary Income Net Sales Operating Income Ordinary Income
Environmental Management & Recycling 52.7 3.0 3.1 51.2 2.8 3.2 (1.5) (0.2) 0.1
Nonferrous Metals 109.9 4.5 6.8 109.3 0.1 2.7 (0.6) (4.4) (4.1)
Electronic Materials 36.2 2.0 2.7 33.3 1.6 2.1 (2.9) (0.4) (0.6)
Metal Processing 46.6 3.5 3.5 46.0 3.1 3.2 (0.6) (0.4) (0.3)
Heat Treatment 14.3 1.3 1.2 13.6 1.2 1.2 (0.7) (0.1) 0
Other / Elimination (30.7) 0.2 0.2 (31.6) 0.5 0.4 (0.9) 0.3 0.2
Total 229.0 14.5 17.5 221.8 9.3 12.8 (7.2) (5.2) (4.7)

(2) Consolidated Full-year Forecasts for Fiscal 2018 (April 1, 2018 to March 31, 2019)

(Billions of Yen)

  Previous Forecast Revised Forecast Changes
Net Sales Operating Income Ordinary Income Net Sales Operating Income Ordinary Income Net Sales Operating Income Ordinary Income
Environmental Management & Recycling 109.3 6.5 6.7 104.5 5.5 6.3 (4.8) (1.0) (0.4)
Nonferrous Metals 227.0 9.6 13.8 224.3 4.0 8.0 (2.7) (5.6) (5.8)
Electronic Materials 73.3 4.0 5.7 66.7 3.2 4.5 (6.6) (0.8) (1.2)
Metal Processing 95.5 7.6 7.7 93.5 7.2 7.4 (2.0) (0.4) (0.3)
Heat Treatment 30.7 3.3 3.2 29.9 3.2 3.2 (0.8) (0.1) 0
Other / Elimination (60.8) 1.0 0.9 (63.9) 1.4 0.6 (3.1) 0.4 (0.3)
Total 475.0 32.0 38.0 455.0 24.5 30.0 (20.0) (7.5) (8.0)

(Notes)
The above forecasts are made based on information available at the time of the announcement and certain assumptions that the Company considers reasonable. Actual performance and other results may differ significantly from the forecasts, due to a variety of factors.

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