HANWA CO., LTD. With Users
FINANCIAL RESULTS
for the Fiscal Year ended March 31, 2017
May 22, 2017
HANWA CO., LTD.Copyright© 2017 Hanwa Co., Ltd. All Rights Reserved 1
Operating Results ( consolidated )With Users
・Net sales increased slightly as higher sales of ferroalloys and lumber offset the impact of low prices of petroleum and steel products.
・SG&A expenses increased by 7%, including a 2% increase resulting from newly consolidated
subsidiaries. Personnel expenses were up about 1 billion yen.
・Ordinary income increased by 49% due mainly to a decrease in equity in losses of affiliates.
・Net income attributable to owners of parent decreased by 36% because of a decline in extraordinary gains and the absence of items that can reduce corporate income taxes.
FY2015 | FY2016 | Rate of changes | |
Net sales | 1,511.8 | 1,514.0 | ＋0% |
Gross profit | 56.5 | 64.5 | ＋14％ |
SG&A | 38.3 | 41.0 | ＋7％ |
Operating income | 18.1 | 23.4 | ＋29％ |
Ordinary income | 15.4 | 22.9 | ＋49％ |
Net income attributable to owners of the parent | 25.4 | 16.3 | －36％ |
EPS | 122.92yen | 80.18yen | －35% |
Comprehensive income | 16.7 | 20.9 | ＋25％ |
（billions of yen）
Changes in Business Results （（（（ consolidated ））））
With Users
Although monetary sales decreased because of low prices of commodities, the transaction volume was generally steady.
Net income remained strong compared with prior years after excluding the one-time contribution to FY2015 net income from the gain on the sale of logistics center land.
Net sales Net income
（billions of yen）
2,000
1,682.51,737.3
Year ended 30
Interim period
25
Year ended Interim period
25.4
1,500
1,000
1,511.8
1,514.0
20
15
16.4
790.7
500
861.1
10
788.2 715.6
5
7.8
3.7
9.0
3.9
6.06.2
0
FY2013 FY2014 FY2015 FY2016
0
FY2013 FY2014 FY2015 FY2016
Copyright© 2017 Hanwa Co., Ltd. All Rights Reserved 3
Effect of Profit /Loss from Market Value Accounting and Temporary FactWoritsh Users
Reported ordinary income of 22.9 billion yen includes one-time factors such as fiscal year-end valuation gains and losses for inventories, derivatives and other items and a one-time loss at subsidiaries. After excluding these factors, ordinary income was 23.2 billion yen compared with 17.7 billion yen one year earlier.
25.0
22.5
22.9
0.8
0.2
0.5
1.3 0.1
(billions of yen)
23.2
20.0
17.5
0.0
Accounting
ordinary income
Ｉnventory valuation
Derivative valuation
Exchange conversion
Loss of subsidiaries
Others Real ordinary income
Segment Information ( consolidated )With Users
Lower commodity prices caused sales to decline in all segments except metals & alloys. Earnings increased mainly because of higher steel earnings and an improvement in the profitability of the food product segment.
Net sales Segment income
（billions of yen）
1,800
1,511.8
30
1,514.0
22.9
1.5
1,600
67.3 73.125
2.5
0. 2
1,400
177.6
174.3
15.4
20 1.4
2.0
2.9
0.1
1.1
1. 4
1,200
1,000
800
600
400
200
276.5 264.5
90.7 89.0
82.179.2
131.2 134.6
798.7786.9
0.8
15 2.2
10
14.8
5
0
18.1
0
-200
-112.2 -87.5
FY2015 FY2016
-5
-10
-0.7
-5.2-4.7
FY2015 FY2016
Steel | Metals & alloys | Non-ferrous metal | Foods |
Petroleum & chemicals | Overseas sales subsidiaries | Other | Adjustment |
Copyright© 2017 Hanwa Co., Ltd. All Rights Reserved 5
Financial Position ( consolidated )With Users
・Total assets increased by 16% from the end of the previous fiscal year primarily because of an increase in trade receivables from the gradual increase in sales.
・Interest-bearing debt increased by 9% in part due to the higher demand for funds in
association with the gradual increase in sales. The net debt-equity ratio was largely flat at 135.7%.
・Net assets increased by 10% primarily because of the fiscal year's net income and an
increase in valuation difference on available-for-sale securities.
FY2015 | FY2016 | Rate of changes | |
Total assets | 599.6 | 694.2 | ＋16％ |
Total liabilities | 443.5 | 522.5 | ＋18% |
Interest-bearing debt | 237.5 | 259.6 | － 1％ |
Net DER | 135.9% | 135.7% | － 0.2pt |
Net assets | 156.1 | 171.6 | ＋10％ |
Shareholders' equity | 154.8 | 170.4 | ＋10％ |
Shareholders' equity ratio | 25.8％ | 24.5％ | －1.3pt |
BPS | 747.40 yen | 838.70 yen | ＋12％ |
（billions of yen）
Cash Flows Situation ( consolidated )With Users
・Operating activities provided net cash of 3.9 billion yen because of an increase in
revenue from business operations..
・Investing activities used net cash of 18.4 billion yen because of cash used for short-
term loans receivable.
・Financing activities provided net cash of 15.4 billion yen mainly due to increases in
proceeds from short-term loans and commercial paper.
（billions of yen）
FY2015 | FY2016 | Change | |
Cash flows from operating activities | 53.0 | 3.9 | －49.1 |
Cash flows from investing activities | (10.4) | (18.4) | － 7.9 |
Cash flows from financing activities | (41.7) | 15.4 | ＋57.1 |
Cash and cash equivalents at end of the period | 25.8 | 27.2 | ＋1.4 |
Copyright© 2017 Hanwa Co., Ltd. All Rights Reserved 7
Business Forecast FY2017 ( year ending March 31, 2018)・Net sales forecast
With Users
Forecast a 12% increase in part because of the increase in commodity prices.
・Profit forecast
Expect an improvement in earnings at subsidiaries with weak performances in the prior fiscal year and higher steel prices to contribute to earnings growth. But forecast only a small increase because of narrower profit margins for construction work, which was highly profitable in prior fiscal years, and the downturn of amusement ride
projects.
（billions of yen）
FY2016 | FY2017 (forecast) | Rate of change | |
Net sales | 1,514.0 | 1,700.0 | ＋12％ |
Operating income | 23.4 | 25.5 | ＋9％ |
Ordinary income | 22.9 | 24.0 | ＋5％ |
Net income attributable to owners of the parent | 16.3 | 16.0 | －2％ |
Hanwa Co. Ltd. published this content on 22 May 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 05 June 2017 06:31:05 UTC.
Original documenthttp://www.hanwa.co.jp/ms/data/pdf/news/20170522en.pdf
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