Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Nine Months Ended December 31, 2021
(Based on Japanese GAAP)
February 7, 2022
Company name:
The Japan Steel Works, Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

5631
URL https://www.jsw.co.jp/
Representative Director & President

Inquiries:

General Manager, General Affairs
DepartmentNaotaka Miyauchi
Atsuya Hodota

TEL

Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

February 10, 2022–

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:NoNo

03-5745-2001(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the nine months ended December 31, 2021 (from April 1, 2021 to December 31, 2021)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Nine months ended December 31, 2021
147,041
5.2
10,13015.9
11,331
21.2
9,047
51.5
Nine months ended December 31, 2020
139,763 (11.4)
8,740 (41.4)
9,347 (42.3)
5,971 (18.5)
Earnings per share

Diluted earnings per share

Yen
123.0081.22

Nine months ended December 31, 2021
Nine months ended December 31, 2020

Yen––(2) Consolidated financial position
Total assets

Net assetsMillions of yen
332,418
316,249

As of December 31, 2021
As of March 31, 2021

Equity ratio

Millions of yen
145,684
141,985

%
43.4
44.4

2. Cash dividends
Annual dividends per share

Year ended March 31, 2021
Year ending March 31, 2022

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
17.50
22.50

Yen––

Yen
17.50

Yen
35.00

22.50

45.00

Year ending March 31, 2022 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
Percentages indicate year-on-year changes
Net sales
Full year

Millions of yen
226,000

Operating profit% Millions of yen
14.1
16,000Ordinary profit% Millions of yen
56.5
16,0001Profit% Millions of yen
49.2
11,000Earnings per share%
59.6

Yen
149.55

4. Notes(1) Changes in significant subsidiaries during the nine months ended December 31, 2021
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

Yes
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2021

74,373,265 shares As of March 31, 2021

74,359,182 shares

Number of treasury shares at the end of the period
As of December 31, 2021

804,057 shares As of March 31, 2021

803,655 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2021

73,555,368 shares Nine months ended December 31, 2020

273,528,937 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2021

As of December 31, 2021

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade89,441
54,38995,440
53,053

Electronically recorded monetary claims - operating
Merchandise and finished goods

2,416
2,550

3,698
4,665

Work in process
Raw materials and supplies

57,0196,126

69,1996,837

Other
Allowance for doubtful accounts

10,889(190)

12,426(208)

Total current assets

222,643

245,114

Buildings and structures, net
Machinery, equipment and vehicles, net

23,045
9,167

22,370
8,667

Other, net

13,98914,337

Total property, plant and equipment

46,20145,375

Goodwill
Other

573
1,803

449
1,495

Total intangible assets

2,376

1,944

Investments and other assets
Investment securities

Non-current assets
Property, plant and equipment

Intangible assets

24,95019,703

Other
Allowance for doubtful accounts

20,410(333)

20,601(321)

Total investments and other assets

45,02739,983

Total non-current assets
Total assets

3

93,60687,303

316,249

332,418

(Millions of yen)
As of March 31, 2021

As of December 31, 2021

Liabilities
Current liabilities
Notes and accounts payable - trade

50,52440,909

Electronically recorded obligations - operating
Short-term borrowings–
10,147

17,003
10,783Current portion of long-term borrowings
Income taxes payable

1,950
2,484

17,014
1,278

Advances received
Contract liabilities

17,928––29,172

Provision for loss on business of wind power
Provision for business restructure

1,421
2,482

750
1,647

Other provisions
Other

701
17,908

1,856
12,742

Total current liabilities

105,548

133,157

Non-current liabilities
Long-term borrowings

44,78130,124

Provisions
Retirement benefit liability

46
12,40456
12,723

Asset retirement obligations
Other

1,352
10,130

1,371
9,300

Total non-current liabilities

68,71553,576174,263

186,733

Total liabilities

4

(Millions of yen)
As of March 31, 2021

As of December 31, 2021

Net assets
Shareholders' equity
Share capital

19,758

19,778

Capital surplus
Retained earnings

5,490
112,784

5,510
118,888

Treasury shares(2,313)(2,314)

Total shareholders' equity

135,719

141,863

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

4,962
(286)

2,229
(261)

Foreign currency translation adjustment
Remeasurements of defined benefit plans

(458)
461

(66)341

Total accumulated other comprehensive income

4,679

2,243

Accumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets

5

1,586

1,577

141,985

145,684

316,249

332,418

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)
Nine months ended

Nine months ended

December 31, 2020

December 31, 2021

Net sales
Cost of sales

139,763
107,298

147,041
113,707

Gross profit

32,46533,334Selling, general and administrative expenses

23,72523,203Operating profit

8,740

10,130Interest income
Dividend income

17507

25700

Gain on non-current assets rent
Share of profit of entities accounted for using equity method

379–

380
10

Non-operating income

Miscellaneous income

460

425

1,365

1,543

Interest expenses
Share of loss of entities accounted for using equity method

197
37208
–

Miscellaneous losses

524

134

Total non-operating income
Non-operating expenses

Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets

758

342

9,347

11,331

7125

Gain on sale of investment securities
Gain on transfer from business divestitures

224
2,540

2,209
–

Total extraordinary income

2,771

2,335

11

Loss on retirement of non-current assets
Loss on sale of investment securities

194
–

143
94

Loss on valuation of investment securities

166–

Total extraordinary losses

362

239

Profit before income taxes

11,756

13,427

Income taxes - current

2,919

3,463

Income taxes - deferred

2,769

795

Total income taxes

5,688

4,259

Profit

6,067

9,168

95

121

5,971

9,047

Extraordinary losses
Loss on sale of non-current assets

Profit attributable to non-controlling interests
Profit attributable to owners of parent

6

Consolidated statements of comprehensive income (cumulative)(Millions of yen)

ProfitOther comprehensive income

Nine months ended

Nine months ended

December 31, 2020

December 31, 2021

6,067

9,168

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

2,233
144(2,733)
24

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

(235)
18378
(119)

Total other comprehensive income

2,160(2,450)

8,227

6,718

8,159

6,610

67107

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

7