Hanwa Co., Ltd.

Message from the Representatives

Yoichi Nakagawa

I was appointed as Representative Director and President in 2022, and begin my second term this fiscal year. Last fiscal year saw the protracted crisis in Ukraine, the stagnation of economic activity and disruption of logistics due to China's zero-coronavirus policy, rising global inflation, and trade friction between the United States and China, among other issues, and the supply chain, which is the lifeline for trading companies, was affected. Various risks have emerged that threaten the sustainability of society. I think this year also made us realize once again the weight of our responsibility as distribution professionals to ensure a stable supply.

The 10th Medium-term Management Plan, which starts in fiscal 2023, implement the basic policies laid out in the 9th Medium-term Plan, “Practice sustainability management”, “Strengthen the management foundation”, “Develop business strategies”, and “Return on investments”. Based on the various “challenges” we have faced so far, we aim to further “soaring”.

Regarding “strengthening the management foundation”, we were able to build a system that would allow us to generate a certain level of profit within the period of the 9th Medium-Term Management Plan. Going forward, we will focus on strengthening our balance sheet (BS) and improving our cash flow (CF) to become a strong company that will not be shaken by unprecedented circumstances. Regarding shareholder returns, our basic policy is to pay progressive dividends with a minimum DOE of 2.5%. Furthermore, our policy is to flexibly consider additional shareholder returns through the acquisition of treasury stock. In order to respond to the support of our shareholders, we will increase corporate value with the goal of achieving ROE of 12.0% or higher and achieve stable shareholder returns.

Regarding “development of business strategy”, we will expand the field by digging deeper into “SOKOKA”(Just-In-Time delivery, small lot, processing) strategies. We plan to shift to a high-value-added processed product sales business by increasing the sophistication of processing, and strengthen our solution capabilities through alliances and other means. Overseas as well, we see the expanding market for locally produced, locally consumed businesses as a powerful growth driver for our group. We aim to respond to increasing environmental awareness such as carbon neutrality and decarbonization, and to optimize and streamline maritime logistics between ASEAN countries and group companies in each country.

In addition, with regard to “monetizing investments”, the “unique resource investments” that we have been promoting are moving from seeding to flowering and harvesting phases. In particular, regarding the secondary battery materials business for EVs, which is expected to grow in the future, we have established the “Battery Global Group” in Singapore as a cross-sectional organization that covers everything from upstream to downstream of secondary batteries to recycling. As a result, we have created a system that allows us to catch up on global trends in the shift to EVs without any time lag, and to respond firmly to the intensifying competition for acquiring resources.

The basis of this business strategy is the practice of sustainability management. In January 2023, we identified our company's important issues (materiality), and one of them is the creation of a sustainable recycling-oriented society. As distribution professionals, it is our natural responsibility to fulfill our supply responsibilities, and from now on, taking on the role of building supply chains that are considerate of the environment and human rights will lead to increased corporate value. As a trading company that is widely involved in social sustainability, each and every employee will act with a strong awareness of the company's significance in society.

In 2030 and beyond, as a “user-oriented trading company” that is close to our customers, we will strive to improve our corporate value in order to gain the understanding and satisfaction of all our stakeholders. You look forward to our future growth and appreciate your continued guidance and support.

  • The Hanwa Scholarship Foundation Corporate Citizenship