About the DOWA Group｜DOWA HOLDINGS CO., LTD. Site of CSR

Towards the Realization of Our Vision

　Under the “Midterm Plan 2020”, which started in April 2018, we are working for further growth by strengthening our basic business base and actively investing in management resources.

●State of progress for the “Midterm Plan 2020”

　In FY 2018, the first year of the Midterm Plan 2020, profits declined year-on-year due to a worsening in purchase conditions for smelting raw materials, and a decrease in demand for electronic materials. Despite not reaching the planned goals, under the basic policies of “expanding business in growth markets” and “strengthening the competitiveness of existing businesses” in order to achieve growth from a medium-term perspective, we have steadily implemented various measures, such as opening overseas locations and increasing the processing capacity of production bases.

	Midterm Plan 2020	2018 Results	2019 Forecast
Operating profit (100 mln yen)	(FY 2020) 450	186	245
Ordinary profit (100 mln yen)	(FY 2020) 500	243	300
ROE（%）	(End of FY 2020) Over 12	6.3	8.0
ROA（%）	(End of FY 2020) Over 10	5.1	6.0
Operating CF (100 mln yen)	(3-year total) 1,200	(2-year total) 725
Investment and lending (100 mln yen)	(3-year total) 1,100	(2-year total) 830
Research & development (100 mln yen)	(3-year total) 200	(2-year total) 131

Change in the Business Environment

Positive Factors

Increase in metal prices
(midterm plan assumption - copper 5,500$/t and zinc 2,700$/t)
Increased collection of automobile shredder dust and discarded home appliances against a background of stronger environmental regulations in Japan and overseas

Negative Factors

Stronger yen (midterm plan assumption - 115 yen / $)
Rising costs such as electricity costs and the unit price of materials
Decreased profit for low-concentration PCB waste treatmentv
Change in the business environment for LEDs and silver powder
Delay in the launch of new product markets by the electronic materials department