Dowa Holdings Co., Ltd. · TSE:5714
Dowa — Investor Presentation (May 2025)
43 slides from Dowa's investor presentation, May 20, 2025
Slide 1: Pursue quality in circularity: Medium-term Plan 2027
Pursue quality in circularity Medium-term Plan 2027 May 20, 2025 © 2025 DOWA HOLDINGS CO., LTD.
Slide 2: For the Sustainable Future: Pursue quality in circularity
For the Sustainable Future Pursue quality in circularity The word "recycling" has been in use for decades in Japan, and the era of pursuing only partial circularity has come to an end. From now on, it is essential to protect the environment, effectively utilize limited resources, and simultaneously
Slide 3: DOWA's Strength: Collect, Separate, Manufacture
DOWA’s Strength Collect, Separate, Manufacture DOWA's businesses leading the circularity. The DOWA Group has established a unique recycling-oriented business model by combining five businesses. We possess a global network to collect waste and recyclable resources and recycle a wide variety of metals
Slide 4: Japan's Vision for the Circular Economy
Japan's Vision for the Circular Economy Resource-scarce Japan cannot achieve sustainable growth unless it transitions to the Circular economy. Linear economy Circular economy An economic system in which added value is maximized by A one-way economic system characterized by mass ensuring the efficien
Slide 5: DOWA's Aim is True Circularity
DOWA's Aim is True Circularity Circularity has entered an era in which quality matters. Today, with "recycling" becoming increasingly widespread, we aim to achieve a more integrated, long-term true circularity. By employing new ideas and more advanced technology while coordinating with industry and
Slide 6: The Aims of Medium-term Plan 2027 (FY2025-FY2027)
The Aims of Medium-term Plan 2027 (FY2025-FY2027) Pursue quality in circularity to better meet the needs of Japan with its limited resources. Expanding circulation Enhancing the quality of capital - Strengthening the five core businesses - Human Capital : Building a company where all employees can w
Slide 7: Review of Medium-term Plan 2024
Review of Medium-term Plan 2024 Achievements and Challenges © 2025 DOWA HOLDINGS CO., LTD. 7
Slide 8: Review of Medium-term Plan 2024: Changes in the Management Environment
Review of Medium-term Plan 2024 | Changes in the Management Environment Since FY2022, a series of new changes have significantly impacted the management environment and earnings. Announcement of Medium-term Plan 2024 Company forecasts New changes Intensifying competition in the collection of recycli
Slide 9: Financial Target Achievement Status
Review of Medium-term Plan 2024 | Financial Target Achievement Status In response to these new changes, we failed to meet any of the financial targets set forth in Medium-term Plan 2024. Despite strong performance in the Environmental Management & Recycling business, the Electronic Materials busines
Slide 10: Progress of Key Initiatives (Achievements and Challenges)
Review of Medium-term Plan 2024 | Progress of Key Initiatives (Achievements and Challenges) In our recycling-oriented business model, we made progress towards the commercialization of new products and technologies. Themes of focus Achievements Challenges ・ Establishment of a recycling business base
Slide 11: Progress of Key Initiatives (Sustainability)
Review of Medium-term Plan 2024 | Progress of Key Initiatives (Achievements and Challenges) Improvements to sustainability management are entering a phase where activities are streamlined and directly connected with business contributions. Themes of focus Achievements Challenges Building a sustainab
Slide 12: Benefitting from the Effects of Investments
Review of Medium-term Plan 2024 | Benefitting from the Effects of Investments Business investment was implemented as planned, and some initiatives realized contributions to earnings. Investment in FY2022 through FY2024 Key measures Achievements Evalu- ation Plan 140.0 billion yen 118.6 billion yen I
Slide 13: Revisions to the Business Portfolio
Review of Medium-term Plan 2024 | Revisions to the Business Portfolio To improve profitability and management efficiency, we revised our business portfolio over the course of Medium-term Plan 2024. Going forward, we will continue to regularly verify each business to make effective use of our limited
Slide 14: Medium-term Plan 2027
Medium-term Plan 2027 Pursue quality in circularity © 2025 DOWA HOLDINGS CO., LTD. 14
Slide 15: Management Environment
Medium-term Plan 2027 | Management Environment In addition to addressing challenges unique to Japan, including population decline and the depopulation of rural areas, it is also necessary to deal with policy shifts implemented by various countries. The Japanese government is promoting the shift to t
Slide 16: The Aims of Medium-term Plan 2027 (FY2025-FY2027)
The Aims of Medium-term Plan 2027 (FY2025-FY2027) <repost> Pursue quality in circularity to better meet the needs of Japan with its limited resources. Expanding circulation Enhancing the quality of capital - Strengthening the five core businesses - Human Capital : Building a company where all employ
Slide 17: Basic strategies
Medium-term Plan 2027 | Basic strategies In Medium-term Plan 2027, we aim to improve corporate value through the basic strategies of creation of value, controlling variability and cultivating expectations. Basic Targets Key measures strategies Strengthening growth ・ Strengthening the recycling-orien
Slide 18: Creation of value
Basic Targets Key measures strategies Strengthening growth businesses Invest Net sales Costs ments Creation of Developing new businesses Basic strategies value and products Creation of value ROE R&D Partnerships Strengthening growth business Developing new businesses and products © 2025 DOWA HOLDING
Slide 19: Strengthening the Recycling-oriented Business Model (1)
Medium-term Plan 2027 | Strengthening the Recycling-oriented Business Model (1) We will promote measures to strengthen global resource recycling. We aim to expand the scope of our waste treatment and recycling business in Japan and Asia through acquisitions. Resource recycling Environmental Manageme
Slide 20: Strengthening the Recycling-oriented Business Model (2)
Medium-term Plan 2027 | Strengthening the Recycling-oriented Business Model (2) We will enhance profitability by consistently providing products and services offering high competitiveness to constantly growing markets. We will focus on the commercialization of previous investment projects as well as
Slide 21: Creating New Circular Systems Through Internal and External Partnerships
Medium-term Plan 2027 | Creating New Circular Systems Through Internal and External Partnerships We will create new circular systems by creating synergies that link the information and technologies of the DOWA Group. Coordination between the Environmental Management & Coordination between the Enviro
Slide 22: Developing New Technologies and Businesses through Industry-Academia Collaboration
Medium-term Plan 2027 | Developing New Technologies and Businesses that Increase Circularity through Industry-Academia Collaboration Through industry-academia collaboration, we will focus on developing new technologies and businesses that create inter-business coordination (enhancing circularity), s
Slide 23: Controlling variability / Cultivating expectations
Basic Targets Key measures strategies Basic strategies Creation of Controlling variability value Cultivating expectations Mitigating risks Controlling Mitigating risks variability Sustainability BCP Cultivating expectations PER © 2025 DOWA HOLDINGS CO., LTD. 23
Slide 24: Responding to Climate Change
Medium-term Plan 2027 | Responding to Climate Change The action policy, target setting and formulation of a plan are complete. During Medium-term Plan 2027 we will transition to the implementation phase. Approach ・ We will take response to climate change with a two-pronged strategy of reducing green
Slide 25: Enhancement of Human Capital
Medium-term Plan 2027 | Enhancement of Human Capital To achieve our vision, we are driving initiatives to build a culture where employees take pride in both their work and the company, while contributing with energy and vitality. Vision (Our Goal in 2030) Creating an organization that continues to g
Slide 26: Driving DX
Medium-term Plan 2027 | Driving DX Over the course of Medium-term Plan 2027, we will use a Groupwide cloud platform and DX-oriented human resources to transform the organization and workstyles through the use of big data and digital technologies. Medium-term Plan 2024 （FY2022–FY2024） Medium-term Pla
Slide 27: Implementing Major Investments to Maintain Business Continuity
Medium-term Plan 2027 | Implementing Major Investments to Maintain Business Continuity We will launch measures to fundamentally address the challenges faced by smelting and recycling complex. We will build a sustainable business infrastructure and link the shift to the Circular economy with enhanced
Slide 28: Numerical Targets
Medium-term Plan 2027 Numerical Targets © 2025 DOWA HOLDINGS CO., LTD. 28
Slide 29: Numerical Targets
Medium-term Plan 2027 | Numerical Targets We aim to achieve ordinary income of 60.0 billion yen and an ROE of 10% in FY2027, the final year of the plan. Medium-term Plan （billion yen) Ordinary income ー Medium-term Plan 2024 2027 (Targets) 80 76.0 2021 2022 2023 2024 2025 2027 70 13.6 Operating incom
Slide 30: Factors Behind Changes in Ordinary Income (Compared with FY2025)
Medium-term Plan 2027 | Factors Behind Changes in Ordinary Income (Compared with FY2025) From the cumulative efforts of measures including the recovery of volume for existing products, the sales expansion and market launch of new products, and the creation of new businesses, we aim to meet our ordin
Slide 31: Recovery of Profitability in the Electronic Materials Business
Medium-term Plan 2027 | Recovery of Profitability in the Electronic Materials Business We aim to enhance profitability through the cumulative efforts of cost reductions, including through the recovery of market share for core products after securing new projects, and the optimization of development
Slide 32: Capital policy and Capital Allocation
Medium-term Plan 2027 | Capital policy and Capital Allocation Our capital policy under Medium-term Plan 2027 is premised on maintaining a sound financial base with the basic approach of covering funding needs with the funds generated from business, while improving profit through business investment
Slide 33: Shareholder Returns
Medium-term Plan 2027 | Shareholder Returns Taking into consideration profit plan and financial condition under Medium-term Plan 2027, the shareholder return policy for FY2025 to FY2027 is as follows. Dividends Payout ratio of 35% or 150 yen per share, whichever is higher Shareholder return policy A
Slide 34: Actions to Enable Management with an Awareness of Capital Costs and Share Price
Medium-term Plan 2027 | Actions to Enable Management with an Awareness of Capital Costs and Share Price We aim to expand the equity spread by improving profitability and reducing the cost of capital. Analysis of the current situation and recognition of issues (%) Annual trends in ROE and cost of sha
Slide 35: Strategies in Each Business
Medium-term Plan 2027 Strategies in Each Business © 2025 DOWA HOLDINGS CO., LTD. 35
Slide 36: Environmental Management & Recycling
Medium-term Plan 2027 | Environmental Management & Recycling VISION As an innovating environmental leader in resource recycling, we will provide high-quality solutions globally, contributing to a safer and more secure future. Ordinary Income (billion yen) Key measures Capital investment (for 3 years
Slide 37: Nonferrous Metals
Medium-term Plan 2027 | Nonferrous Metals VISION We will drive enhancements to the qualitative strength of our integrated smelting and recycling complex functions to develop a sustainable smelting business model. Ordinary Income (billion yen) Key measures Capital investment (for 3 years) 30.0 ・ Proc
Slide 38: Electronic Materials
Medium-term Plan 2027 | Electronic Materials VISION We will become one of the world-leading material manufacturer, offering niche-leading products in highly profitable markets. Ordinary Income (billion yen) Key measures Capital investment (for 3 years) 8.0 ・ Securing next-generation projects involvi
Slide 39: Metal Processing
Medium-term Plan 2027 | Metal Processing VISION We will provide services and products that exceed expectations with a customer-centric approach, while continuing to take on the challenge of creating new value which is of significance to society. Ordinary Income (billion yen) Key measures Capital inv
Slide 40: Heat Treatment
Medium-term Plan 2027 | Heat Treatment VISION We will establish an indispensable presence in the area of heat treatment and survive in a globally changing market. We will leverage our strengths in both software and hardware to help shape a carbon neutral society. Ordinary Income(billion yen) Key mea
Slide 41: Supplementary Information: Assumptions and Sensitivities
Supplementary Information | Assumptions and Sensitivities Sensitivities Operation income FY2025 （million yen） Assumptions Fluctuations Sensitivities Exchange rate 142.0 ¥/$ ±1 yen 490 Copper 9,000 $/ton ±100 dollars 30 Zinc 2,600 $/ton ±100 dollars 530 Exchange rate sensitivity; Nonferrous Metals 42
Slide 42: Supplementary Information: Materiality in Medium-term Plan 2027
Supplementary Information | Materiality in Medium-term Plan 2027 The social issues (materiality) the DOWA Group aims to address during Medium-term Plan 2027 have been identified. Two themes have been added to sustainability activities planned through FY2024, based on the importance of each item. Mat
Slide 43: Forward-looking statements
Forward-looking statements made in this document, such as business forecast, are based on the information available at this time and on certain premises that the Company assumes to be reasonable. Actual performance may differ materially from such forecasts due to a variety of factors