Supplementary Financial Results Materials for Fiscal 2025 | DOWA HOLDINGS CO.,LTD. (5714) timely disclosure

Worth reading

70In focus

0–100. This measures how worthwhile something is to read, not how good or bad the company is.

Direction

Improvement

Direction inferred from the company’s description.

Scale

624

Hundreds of millions of yen

Wording

Conditional

How definitive the wording is.

Contents of this document

Supplementary materials to the earnings reportFY2025 (fiscal year ending March 2026)10 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales7,454 Hundreds of millions of yen+9.8%

Operating profit341 Hundreds of millions of yen+6.1%

Ordinary income543 Hundreds of millions of yen+24.6%

Net income624 Hundreds of millions of yen+130.2%

Results for the three months of the current quarter

Net Sales

2,466 Hundreds of millions of yen

Operating profit

214 Hundreds of millions of yen

Ordinary income

323 Hundreds of millions of yen

Profit attributable to owners of the parent

438 Hundreds of millions of yen

Full-year earnings forecast

Target fiscal yearFiscal 2026

Net Sales

9,410 Hundreds of millions of yen

Operating profit

530 Hundreds of millions of yen

Ordinary income

800 Hundreds of millions of yen

Profit attributable to owners of the parent

570 Hundreds of millions of yen

What the company explained in this material

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Change in ordinary profit

Impact of initiatives, changes in sales volume and other factors-3

Difference in actual yield (volume difference)-16

Difference in actual yield (metal price per-unit difference)90

Foreign-currency-denominated income: foreign exchange differences-3

Metal price and foreign exchange variances (excluding the Smelting segment)54

Raw material costs (differences in raw material purchase terms)-39

Electricity costs16

Inventory valuation gains and losses-20

Hedging transactions-5

Manufacturing costs, SG&A expenses and R&D expenses-76

Change in operating profit19

Non-Operating Income and Expenses87

Change in ordinary profit107

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

Foreign exchange¥155.0/US$

CopperUS$12,000/t

ZincUS$3,100/t

IndiumUS$600/kg

Variable assumptionsAssumes higher electricity and material prices than in the previous fiscal year

New initiatives

Expansion of final disposal facilities
Expansion of pretreatment facilities for recycled raw materials
Expansion of waste treatment facilities in Singapore
Renewal of smelting facilities
Renewal of copper products production facilities
Increase sales of fuel-cell materials (composite oxide powder)

Key KPIsA metric the company considers important as a management benchmark.

Domestic waste intermediate-processing volumeFY2025 4Q 87
Number of household appliances processed for recyclingFY2025 4Q 95
Southeast Asia waste-treatment revenueFY2025 4Q 116
Recycled raw materials handled (Kosaka Smelting)FY2025 4Q 89
Zinc production volumeFY2025 4Q 91
LED sales volumeFY2025 4Q 86
Silver powder sales volumeFY2025 4Q 17
Copper products sales volumeFY2025 4Q 109
Heat-treatment processing revenueFY2025 4Q 111
Industrial furnace revenueFY2025 4Q 231

Segment results

Environment and Recycling

Net Sales

2,271 Hundreds of millions of yen

Operating profit

160 Hundreds of millions of yen

Ordinary income

165 Hundreds of millions of yen

Year-on-year change in revenue

470 Hundreds of millions of yen

Year-on-year change in operating income

21 Hundreds of millions of yen

Year-on-year change in ordinary income

15 Hundreds of millions of yen

Smelting

Net Sales

3,647 Hundreds of millions of yen

Operating profit

69 Hundreds of millions of yen

Ordinary income

196 Hundreds of millions of yen

Year-on-year change in revenue

984 Hundreds of millions of yen

Year-on-year change in operating income

-36 Hundreds of millions of yen

Year-on-year change in ordinary income

25 Hundreds of millions of yen

Electronic Materials

Net Sales

1,045 Hundreds of millions of yen

Operating profit

-26 Hundreds of millions of yen

Ordinary income

11 Hundreds of millions of yen

Year-on-year change in revenue

-602 Hundreds of millions of yen

Year-on-year change in operating income

-20 Hundreds of millions of yen

Year-on-year change in ordinary income

8 Hundreds of millions of yen

Metal Processing

Net Sales

1,473 Hundreds of millions of yen

Operating profit

93 Hundreds of millions of yen

Ordinary income

97 Hundreds of millions of yen

Year-on-year change in revenue

185 Hundreds of millions of yen

Year-on-year change in operating income

40 Hundreds of millions of yen

Year-on-year change in ordinary income

38 Hundreds of millions of yen

Heat Treatment

Net Sales

339 Hundreds of millions of yen

Operating profit

19 Hundreds of millions of yen

Ordinary income

27 Hundreds of millions of yen

Year-on-year change in revenue

2 Hundreds of millions of yen

Year-on-year change in operating income

-1 Hundreds of millions of yen

Year-on-year change in ordinary income

5 Hundreds of millions of yen

Financial targets

Equity ratio

End of March 202559.2 %

End of March 202657.3 %

ROA

End of March 20256.7 %

End of March 20267.4 %

ROE

End of March 20257 %

End of March 202614.6 %

Capital expenditures

358 Hundreds of millions of yen

Annual Dividend

FY2025

Annual¥368 per share

Regular dividend¥268 per share

Special dividend¥100 per share

Fiscal 2026 Plan

Annual¥338 per share

Regular dividend¥338 per share

Special dividend¥0 per share

Payout ratio

FY202535.1 %

Fiscal 2026 Plan35.1 %

Acquisition of treasury shares

100 Hundreds of millions of yen

PeriodTo be conducted in conjunction with the sale of securities in February 2026

Contents of this document
Item	Details
Document type	Supplementary materials to the earnings report
Fiscal Period Covered	FY2025 (fiscal year ending March 2026)
Net Sales	7,454 Hundreds of millions of yen (YoY +9.8%)
Operating profit	341 Hundreds of millions of yen (YoY +6.1%)
Ordinary income	543 Hundreds of millions of yen (YoY +24.6%)
Net income	624 Hundreds of millions of yen (YoY +130.2%)
Results for the three months of the current quarter	Net Sales 2,466 Hundreds of millions of yen / Operating profit 214 Hundreds of millions of yen / Ordinary income 323 Hundreds of millions of yen / Profit attributable to owners of the parent 438 Hundreds of millions of yen
Full-year earnings forecast	Target fiscal year Fiscal 2026 / Net Sales 9,410 Hundreds of millions of yen / Operating profit 530 Hundreds of millions of yen / Ordinary income 800 Hundreds of millions of yen / Profit attributable to owners of the parent 570 Hundreds of millions of yen
Segment results	Environment and Recycling Net Sales 2,271 Hundreds of millions of yen / Operating profit 160 Hundreds of millions of yen / Ordinary income 165 Hundreds of millions of yen / Year-on-year change in revenue 470 Hundreds of millions of yen / Year-on-year change in operating income 21 Hundreds of millions of yen / Year-on-year change in ordinary income 15 Hundreds of millions of yen / Smelting Net Sales 3,647 Hundreds of millions of yen / Operating profit 69 Hundreds of millions of yen / Ordinary income 196 Hundreds of millions of yen / Year-on-year change in revenue 984 Hundreds of millions of yen / Year-on-year change in operating income -36 Hundreds of millions of yen / Year-on-year change in ordinary income 25 Hundreds of millions of yen / Electronic Materials Net Sales 1,045 Hundreds of millions of yen / Operating profit -26 Hundreds of millions of yen / Ordinary income 11 Hundreds of millions of yen / Year-on-year change in revenue -602 Hundreds of millions of yen / Year-on-year change in operating income -20 Hundreds of millions of yen / Year-on-year change in ordinary income 8 Hundreds of millions of yen / Metal Processing Net Sales 1,473 Hundreds of millions of yen / Operating profit 93 Hundreds of millions of yen / Ordinary income 97 Hundreds of millions of yen / Year-on-year change in revenue 185 Hundreds of millions of yen / Year-on-year change in operating income 40 Hundreds of millions of yen / Year-on-year change in ordinary income 38 Hundreds of millions of yen / Heat Treatment Net Sales 339 Hundreds of millions of yen / Operating profit 19 Hundreds of millions of yen / Ordinary income 27 Hundreds of millions of yen / Year-on-year change in revenue 2 Hundreds of millions of yen / Year-on-year change in operating income -1 Hundreds of millions of yen / Year-on-year change in ordinary income 5 Hundreds of millions of yen
Breakdown of Factors Affecting the Change	Change in ordinary profit Impact of initiatives, changes in sales volume and other factors -3 / Difference in actual yield (volume difference) -16 / Difference in actual yield (metal price per-unit difference) 90 / Foreign-currency-denominated income: foreign exchange differences -3 / Metal price and foreign exchange variances (excluding the Smelting segment) 54 / Raw material costs (differences in raw material purchase terms) -39 / Electricity costs 16 / Inventory valuation gains and losses -20 / Hedging transactions -5 / Manufacturing costs, SG&A expenses and R&D expenses -76 / Change in operating profit 19 / Non-Operating Income and Expenses 87 / Change in ordinary profit 107
Key KPIs	Indicator name Domestic waste intermediate-processing volume / Value FY2025 4Q 87 / Year on year against the same period last year Not disclosed, Indicator name Number of household appliances processed for recycling / Value FY2025 4Q 95 / Year on year against the same period last year Not disclosed, Indicator name Southeast Asia waste-treatment revenue / Value FY2025 4Q 116 / Year on year against the same period last year Not disclosed, Indicator name Recycled raw materials handled (Kosaka Smelting) / Value FY2025 4Q 89 / Year on year against the same period last year Not disclosed, Indicator name Zinc production volume / Value FY2025 4Q 91 / Year on year against the same period last year Not disclosed, Indicator name LED sales volume / Value FY2025 4Q 86 / Year on year against the same period last year Not disclosed, Indicator name Silver powder sales volume / Value FY2025 4Q 17 / Year on year against the same period last year Not disclosed, Indicator name Copper products sales volume / Value FY2025 4Q 109 / Year on year against the same period last year Not disclosed, Indicator name Heat-treatment processing revenue / Value FY2025 4Q 111 / Year on year against the same period last year Not disclosed, Indicator name Industrial furnace revenue / Value FY2025 4Q 231 / Year on year against the same period last year Not disclosed
Assumptions Underlying the Business Outlook	Foreign exchange ¥155.0/US$ / Copper US$12,000/t / Zinc US$3,100/t / Indium US$600/kg / Variable assumptions Assumes higher electricity and material prices than in the previous fiscal year
Financial targets	Equity ratio End of March 2025 59.2 % / End of March 2026 57.3 % / ROA End of March 2025 6.7 % / End of March 2026 7.4 % / ROE End of March 2025 7 % / End of March 2026 14.6 %
Annual Dividend	FY2025 Annual ¥368 per share / Regular dividend ¥268 per share / Special dividend ¥100 per share / Fiscal 2026 Plan Annual ¥338 per share / Regular dividend ¥338 per share / Special dividend ¥0 per share
Payout ratio	FY2025 35.1 % / Fiscal 2026 Plan 35.1 %
Acquisition of treasury shares	Amount 100 Hundreds of millions of yen / Period To be conducted in conjunction with the sale of securities in February 2026
Capital expenditures	358 Hundreds of millions of yen
New initiatives	Expansion of final disposal facilities, Expansion of pretreatment facilities for recycled raw materials, Expansion of waste treatment facilities in Singapore, Renewal of smelting facilities, Renewal of copper products production facilities, Increase sales of fuel-cell materials (composite oxide powder)

Items this document does not state (13)

Gross Profit MarginOperating profit marginSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsOrders 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.

In FY2025, higher metal prices, increased processing volumes in the melting and recycling business, increased sales of information and communications-related products, including products for AI servers, the start of mass production and sales of new near-infrared LED and PD products, and a recovery in automotive-related demand contributed to higher earnings. On the other hand, less favorable purchasing terms for smelting raw materials, lower sales of silver powder and higher costs, and increases in manufacturing costs, selling, general and administrative expenses, and research and development expenses weighed on profit. The substantial increase in net income was attributed in part to gains on the sale of securities.

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