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Financial results presentation5707Toho Zinc Co.,Ltd.Iron and Steel, Nonferrous Metals

Financial Results Presentation for the Second Quarter of the Fiscal Year Ending March 2027 (FY2026)

In the second quarter, revenue and profit increased year on year, and operating profit, ordinary profit and net profit returned to the black. Meanwhile, the company lowered its full-year earnings forecast due to a worsening raw-material procurement environment, an increase in work in progress and falling metal prices.

Worth reading
63In focus
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Direction
Mixed performance
Direction inferred from the company’s description.
Scale
34
¥100 million (amount of downward revision to the full-year EBITDA outlook)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationSecond quarter of the fiscal year ending March 2027 (FY2026)7 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥664.5 100 million
Operating profit¥9.1 100 million
Ordinary income¥4.3 100 million
Net income¥5.2 100 million
Results for the three months of the current quarter
Net Sales
¥353.4 100 million
Operating profit
¥11.6 100 million
EBITDA
¥15.9 100 million
Ordinary income
¥10.1 100 million
Net income for the current fiscal year
¥2.6 100 million
Full-year earnings forecast
Net Sales
¥1,310 100 million
EBITDA
¥46 100 million
Ordinary income
¥16 100 million
Net income for the current fiscal year
¥8 100 million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Decline in precious-metal production and sales, etc.¥-13 100 million
  • TC/RC, spent batteries, etc.¥-12 100 million
  • Impact of higher selling prices¥5 100 million
  • Impact of metal prices and foreign exchange¥4 100 million
  • Benefits from measures involving the sale of held assets, including silver¥10 100 million
  • Reversal of costs related to residual work following the previous year's restructuring of the zinc business, and other factors¥7 100 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Lead prices
    FY2026 outlook1,900
    FY2026 Revision1,903
  • Silver prices
    FY2026 outlook80
    FY2026 Revision62
  • Foreign Exchange
    FY2026 outlook160
    FY2026 Revision160
New initiatives
  • Reducing work in progress and shortening manufacturing lead times through collaboration among smelters
  • Strengthening precious-metal production and sales
  • Expansion of the spent-battery processing line
  • Recovery of valuable metals through effective utilization of the Annaka facilities
  • Participation in The University of Tokyo's Rare Earth Mud and Manganese Nodule Development Promotion Consortium
  • Stable supply of zinc oxide using recycled feedstock
Key KPIsA metric the company considers important as a management benchmark.
  • EBITDA¥16.7 100 million
    Year on year against the same period last year+16.5%
  • Lead product production volume40.5 thousand tonnes
    Year on year against the same period last year+0.1%
  • Electrolytic silver production volume93.9 t
    Year on year against the same period last year-15.5%
  • Equity ratio17.9 %
  • Stock acquisition rights exercise ratio63.03 %
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Lead prices1,905.9 US$/t
    Year on year against the same period last year-3.0%
  • Silver price68.1 US$/oz
    Year on year against the same period last year+86.0%
  • ¥/US$¥159.5 /US$
    Year on year against the same period last year+9.0%
  • Lead product production volume40.5 thousand tonnes
    Year on year against the same period last year0.0%
  • Electrolytic silver production volume93.9 t
    Year on year against the same period last year-14.0%
Segment results
  • Smelting
    Profit¥-18.6 100 million
    Change from the same period of the previous year¥-16.8 100 million
  • Environment and Recycling
    Profit¥14.5 100 million
    Change from the same period of the previous year¥11.1 100 million
  • Electronic Materials and Functional Materials
    Profit¥0.7 100 million
    Change from the same period of the previous year¥-1.2 100 million
  • Metal Recycling
    Profit¥9.3 100 million
    Change from the same period of the previous year¥17.4 100 million
  • Resources
    Profit¥0 100 million
    Change from the same period of the previous year¥0 100 million
  • Other
    Profit¥1.8 100 million
    Change from the same period of the previous year¥0.9 100 million
  • Adjustments
    Profit¥-3.4 100 million
    Change from the same period of the previous year¥4.8 100 million
Financial targets
Equity ratio
Actual results17.9 %
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending March 2027 (FY2026)
Net Sales¥664.5 100 million
Operating profit¥9.1 100 million
Ordinary income¥4.3 100 million
Net income¥5.2 100 million
Results for the three months of the current quarterNet Sales ¥353.4 100 million / Operating profit ¥11.6 100 million / EBITDA ¥15.9 100 million / Ordinary income ¥10.1 100 million / Net income for the current fiscal year ¥2.6 100 million
Full-year earnings forecastNet Sales ¥1,310 100 million / EBITDA ¥46 100 million / Ordinary income ¥16 100 million / Net income for the current fiscal year ¥8 100 million
Segment resultsSegment Smelting / Profit ¥-18.6 100 million / Change from the same period of the previous year ¥-16.8 100 million, Segment Environment and Recycling / Profit ¥14.5 100 million / Change from the same period of the previous year ¥11.1 100 million, Segment Electronic Materials and Functional Materials / Profit ¥0.7 100 million / Change from the same period of the previous year ¥-1.2 100 million, Segment Metal Recycling / Profit ¥9.3 100 million / Change from the same period of the previous year ¥17.4 100 million, Segment Resources / Profit ¥0 100 million / Change from the same period of the previous year ¥0 100 million, Segment Other / Profit ¥1.8 100 million / Change from the same period of the previous year ¥0.9 100 million, Segment Adjustments / Profit ¥-3.4 100 million / Change from the same period of the previous year ¥4.8 100 million
Breakdown of Factors Affecting the ChangeFactors Decline in precious-metal production and sales, etc. / Amount ¥-13 100 million, Factors TC/RC, spent batteries, etc. / Amount ¥-12 100 million, Factors Impact of higher selling prices / Amount ¥5 100 million, Factors Impact of metal prices and foreign exchange / Amount ¥4 100 million, Factors Benefits from measures involving the sale of held assets, including silver / Amount ¥10 100 million, Factors Reversal of costs related to residual work following the previous year's restructuring of the zinc business, and other factors / Amount ¥7 100 million
Key KPIsIndicator name EBITDA / Value ¥16.7 100 million / Year on year against the same period last year ¥16.5 100 million, Indicator name Lead product production volume / Value 40.5 thousand tonnes / Year on year against the same period last year 0.1 thousand tonnes, Indicator name Electrolytic silver production volume / Value 93.9 t / Year on year against the same period last year -15.5 t, Indicator name Equity ratio / Value 17.9 % / Year on year against the same period last year Not disclosed, Indicator name Stock acquisition rights exercise ratio / Value 63.03 % / Year on year against the same period last year Not disclosed
Unit price and quantity metricsIndicator name Lead prices / Value 1,905.9 US$/t / Year on year against the same period last year -3 US$/t, Indicator name Silver price / Value 68.1 US$/oz / Year on year against the same period last year 86 US$/oz, Indicator name ¥/US$ / Value ¥159.5 /US$ / Year on year against the same period last year ¥9 /US$, Indicator name Lead product production volume / Value 40.5 thousand tonnes / Year on year against the same period last year 0 thousand tonnes, Indicator name Electrolytic silver production volume / Value 93.9 t / Year on year against the same period last year -14 t
Assumptions Underlying the Business OutlookItem Lead prices / FY2026 outlook 1,900 US$/tonne / FY2026 Revision 1,903 US$/tonne, Item Silver prices / FY2026 outlook 80 US$/troy ounce / FY2026 Revision 62 US$/troy ounce, Item Foreign Exchange / FY2026 outlook ¥160 /US$ / FY2026 Revision ¥160 /US$
Financial targetsEquity ratio Actual results 17.9 %
New initiativesReducing work in progress and shortening manufacturing lead times through collaboration among smelters, Strengthening precious-metal production and sales, Expansion of the spent-battery processing line, Recovery of valuable metals through effective utilization of the Annaka facilities, Participation in The University of Tokyo's Rare Earth Mud and Manganese Nodule Development Promotion Consortium, Stable supply of zinc oxide using recycled feedstock
Items this document does not state (16)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The company cited the worsening procurement environment for raw-material ores, less favorable TC/RC and spent-battery terms, longer processing times and an increase in work in progress due to raw-material conditions, lower production and sales of precious metals, and falling metal prices as the main reasons for lowering its full-year forecast. For the second-quarter profit increase, it cited rising silver prices, the effects of measures to sell held assets containing silver, the reversal of costs for follow-up work related to the previous year's restructuring of the zinc business, and the tax effect from recognizing deferred tax assets.

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Financial Results Presentation for the Second Quarter of the Fiscal Year Ending March 2027 (FY2026) | Toho Zinc Co.,Ltd. (5707) timely disclosure | Komori