Fiscal 2026 First-Half Financial Results Presentation Materials (Second Quarter of the Fiscal Year Ending March 2027) | HANWA CO.,LTD. (8078) timely disclosure

Worth reading

61In 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

¥100 million (increase in full-year ordinary profit forecast)

Wording

Conditional

How definitive the wording is.

Contents of this document

Earnings presentationSecond quarter of the fiscal year ending March 20268 items taken from the company’s own explanation

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

Net Sales¥14,769 100 million+15.0%

Operating profit¥368 100 million+33.0%

Ordinary income¥357 100 million+50.0%

Net income¥230 100 million+37.0%

Results for the three months of the current quarter

Ordinary profit by segment

Iron and steel81

Primary Metals21

Recycled Metals19

Food8

Energy and Daily Materials30

Overseas Sales Subsidiaries14

Other2

Adjustments-11

Total167

Full-year earnings forecast

Net Sales

¥30,000 100 million

Operating profit

¥700 100 million

Ordinary income

¥650 100 million

Profit attributable to owners of the parent

¥450 100 million

Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。

Net Sales49%

Operating profit53%

Ordinary income55%

Profit attributable to owners of the parent51%

Underlying Ordinary Profit53%

By segment

Iron and steel49%

Primary Metals54%

Recycled Metals77%

Food52%

Energy and Daily Materials64%

Overseas Sales Subsidiaries45%

Other36%

What the company explained in this material

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

From Ordinary Profit to Underlying Ordinary ProfitInventory valuation: -¥400 million; foreign exchange valuation: -¥100 million; derivative valuation: -¥700 million; one-off factors: -¥100 million

Iron and steelDecline in the progress of construction projects and other factors: -¥900 million

Primary MetalsShare of profit (loss) of SAMANCOR under the equity method turned profitable: +¥3.1 billion

Recycled MetalsSecuring stable transaction volumes, expanding margins and other factors: +¥4.3 billion

FoodDecline in salmon transaction volumes and other factors: -¥0 million

Energy and Daily MaterialsSecuring transaction volumes and margins and other factors: +¥4.6 billion

Overseas Sales SubsidiariesHigher sales volumes in Southeast Asia: +¥400 million

OtherDeteriorating profitability of European steel products, a decline in completed machinery projects and other factors: -¥100 million

New initiatives

¥5 billion share repurchase
Investment in Associated Steel Group, LLC
Capital and business alliance with 中山製鋼所 and subscription for a third-party allotment of shares
Integration of ダイサン, ダイサン物流 and 三栄金属
Construction of a new warehouse for the HSD Steel Center (provisional name) in Sakai, Osaka

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

Global steel handling volume706 10,000 tonnes
Year on year against the same period last year-10,000 t (-0%)
Consolidated steel business handling volume429 10,000 tonnes
Standalone Primary Metals handling volume855 thousand tonnes
Standalone Recycled Metals handling volume127 thousand tonnes
Standalone Food handling volume45 thousand tonnes

Segment results

Iron and steel

Net Sales

¥5,521 100 million

Ordinary income

¥165 100 million

Ordinary Profit_yoy_pct-6

Primary Metals

Net Sales

¥1,222 100 million

Ordinary income

¥18 100 million

Recycled Metals

Net Sales

¥1,768 100 million

Ordinary income

¥46 100 million

Food

Net Sales

¥801 100 million

Ordinary income

¥18 100 million

Ordinary Profit_yoy_pct-2

Energy and Daily Materials

Net Sales

¥1,800 100 million

Ordinary income

¥86 100 million

Ordinary Profit_yoy_pct118

Overseas Sales Subsidiaries

Ordinary income

¥31 100 million

Ordinary Profit_yoy_pct15

Other

Ordinary income

¥8 100 million

Ordinary Profit_yoy_pct-16

Medium-term management plan targets

DOE floor3.5%

Total shareholder return ratio targetApproximately 40%

Capital expenditures

¥132 100 million other growth investments and group optimisation investments, including capital expenditures

Annual Dividend

Annual dividend per share¥66

Interim¥33

End of period¥33

Acquisition of treasury shares

¥50 100 million

Contents of this document
Item	Details
Document type	Earnings presentation
Fiscal Period Covered	Second quarter of the fiscal year ending March 2026
Net Sales	¥14,769 100 million (YoY +15.0%)
Operating profit	¥368 100 million (YoY +33.0%)
Ordinary income	¥357 100 million (YoY +50.0%)
Net income	¥230 100 million (YoY +37.0%)
Results for the three months of the current quarter	Ordinary profit by segment Iron and steel 81 / Primary Metals 21 / Recycled Metals 19 / Food 8 / Energy and Daily Materials 30 / Overseas Sales Subsidiaries 14 / Other 2 / Adjustments -11 / Total 167
Full-year earnings forecast	Net Sales ¥30,000 100 million / Operating profit ¥700 100 million / Ordinary income ¥650 100 million / Profit attributable to owners of the parent ¥450 100 million
Progress against full-year forecast	Net Sales 49% / Operating profit 53% / Ordinary income 55% / Profit attributable to owners of the parent 51% / Underlying Ordinary Profit 53% / By segment Iron and steel 49% / Primary Metals 54% / Recycled Metals 77% / Food 52% / Energy and Daily Materials 64% / Overseas Sales Subsidiaries 45% / Other 36%
Segment results	Iron and steel Net Sales ¥5,521 100 million / Ordinary income ¥165 100 million / Ordinary Profit_yoy_pct -6 / Primary Metals Net Sales ¥1,222 100 million / Ordinary income ¥18 100 million / Ordinary Profit_yoy_pct Not disclosed / Recycled Metals Net Sales ¥1,768 100 million / Ordinary income ¥46 100 million / Ordinary Profit_yoy_pct Not disclosed / Food Net Sales ¥801 100 million / Ordinary income ¥18 100 million / Ordinary Profit_yoy_pct -2 / Energy and Daily Materials Net Sales ¥1,800 100 million / Ordinary income ¥86 100 million / Ordinary Profit_yoy_pct 118 / Overseas Sales Subsidiaries Net Sales Not disclosed / Ordinary income ¥31 100 million / Ordinary Profit_yoy_pct 15 / Other Net Sales Not disclosed / Ordinary income ¥8 100 million / Ordinary Profit_yoy_pct -16
Breakdown of Factors Affecting the Change	From Ordinary Profit to Underlying Ordinary Profit Inventory valuation: -¥400 million; foreign exchange valuation: -¥100 million; derivative valuation: -¥700 million; one-off factors: -¥100 million / Iron and steel Decline in the progress of construction projects and other factors: -¥900 million / Primary Metals Share of profit (loss) of SAMANCOR under the equity method turned profitable: +¥3.1 billion / Recycled Metals Securing stable transaction volumes, expanding margins and other factors: +¥4.3 billion / Food Decline in salmon transaction volumes and other factors: -¥0 million / Energy and Daily Materials Securing transaction volumes and margins and other factors: +¥4.6 billion / Overseas Sales Subsidiaries Higher sales volumes in Southeast Asia: +¥400 million / Other Deteriorating profitability of European steel products, a decline in completed machinery projects and other factors: -¥100 million
Key KPIs	Indicator name Global steel handling volume / Value 706 10,000 tonnes / Year on year against the same period last year -10,000 t (-0%), Indicator name Consolidated steel business handling volume / Value 429 10,000 tonnes / Year on year against the same period last year Not disclosed, Indicator name Standalone Primary Metals handling volume / Value 855 thousand tonnes / Year on year against the same period last year Not disclosed, Indicator name Standalone Recycled Metals handling volume / Value 127 thousand tonnes / Year on year against the same period last year Not disclosed, Indicator name Standalone Food handling volume / Value 45 thousand tonnes / Year on year against the same period last year Not disclosed
Medium-term management plan targets	DOE floor 3.5% / Total shareholder return ratio target Approximately 40%
Annual Dividend	Annual dividend per share ¥66 / Interim ¥33 / End of period ¥33
Acquisition of treasury shares	Amount ¥50 100 million / Period Not disclosed
Capital expenditures	¥132 100 million (other growth investments and group optimisation investments, including capital expenditures)
New initiatives	¥5 billion share repurchase, Investment in Associated Steel Group, LLC, Capital and business alliance with 中山製鋼所 and subscription for a third-party allotment of shares, Integration of ダイサン, ダイサン物流 and 三栄金属, Construction of a new warehouse for the HSD Steel Center (provisional name) in Sakai, Osaka

Items this document does not state (14)

Gross Profit MarginOperating profit marginSelling, general and administrative expensesSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookFinancial targetsPayout ratioOrders 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.

Profit increased in the recycled metals business due to improved margins resulting from concerns over aluminium supply and tight supply and demand for minor metals; in the energy and lifestyle materials business, due to securing transaction volumes and margins; and at overseas sales subsidiaries, due in part to higher sales volumes in Southeast Asia. Meanwhile, forecasts for primary metals and Other were revised downward because of challenging business conditions and a decline in completed projects.

How to read this page

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