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 Year Ended March 31, 2023
(Based on Japanese GAAP)May 12, 2023
Company name:

The Japan Steel Works, Ltd.

Stock exchange listing: Tokyo
Stock code:
5631
Representative:
Inquiries:

URL

https://www.jsw.co.jp/

Representative Director & President
General Manager, General Affairs

Department
Scheduled date of ordinary general meeting of shareholders:toshio matsuo
hideo nakanishi

TEL03-5745-2001

June 27, 2023

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

June 27, 2023
June 28, 2023

Preparation of supplementary material on financial results:
Holding of financial results meeting:NoYes(for analysts and institutional investors)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(1) Consolidated operating resultsNet sales
Year ended March 31, 2023
Year ended March 31, 2022

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen%
13,846(10.4)
14,958 (10.8)
11,974(14.1)
15,46051.2
16,772
56.4
13,948 102.3

Millions of yen
238,721
213,790

%
11.7
8.0

Earnings per share

Diluted earnings pershare

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%–
7.8
4.3
5.8–9.65.1
7.2

Yen
162.75
189.63

Year ended March 31, 2023
Year ended March 31, 2022
(2) Consolidated financial position

Total assets
As of March 31, 2023
As of March 31, 2022

Net assets

Equity ratio

Millions of yen
348,358
339,729

Millions of yen
160,636
151,083

Cash flows fromoperating activities
Millions of yen(986)
22,325

Cash flows frominvesting activities
Millions of yen
947(2,976)

Net assets per share%
45.7
44.0

Yen
2,162.18
2,031.29(3) Consolidated cash flows

Year ended March 31, 2023
Year ended March 31, 2022

Cash flows fromCash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(20,112)
86,400(2,860)105,799

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2022
Year ended March 31, 2023
Year ending March 31, 2024
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

––

22.50
29.00

––

34.50
29.0057.00
58.00

4,193
4,267

30.1
35.6

2.9
2.8

–

29.00

–

29.00

58.00

130.5

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)
Percentages indicate year-on-year changes
Net sales
Full year

Millions of yen
280,000

Operating profit% Millions of yen
17.3
18,500Ordinary profit% Millions of yen
33.6
19,000

Profit% Millions of yen
27.0
14,000Earnings per share%
16.9

Yen
190.26

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2023(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) 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:

No
No

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

NoNo(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2023

74,387,779 shares As of March 31, 2022

74,373,265 shares

Number of treasury shares at the end of the period
As of March 31, 2023

804,399 shares As of March 31, 2022

804,074 shares

73,579,295 shares Year ended March 31, 2022

73,555,306 shares

Average number of shares during the period
Year ended March 31, 2023

2

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2022

As of March 31, 2023

AssetsCurrent assets
Cash and deposits
Notes receivable - trade106,2392,080

87,2861,826Electronically recorded monetary claims - operating
Accounts receivable - trade

3,723
53,7603,672
66,697

Merchandise and finished goods
Work in process

4,735
62,863

5,668
76,245

Raw materials and supplies
Other

6,985
12,036

8,839
13,988

(333)

(369)

252,091

263,856

22,004

21,197

Machinery, equipment and vehicles, netTools, furniture and fixtures, net

10,635
1,436

11,084
1,915

Land
Leased assets, net

7,989
764

7,502
761

Construction in progress

1,679

2,121

Total property, plant and equipment

44,50944,58340782242
30

Other

1,460

1,264

Total intangible assets

1,951

1,537

Investment securities
Long-term loans receivable

19,602
303

19,388300

Distressed receivables
Retirement benefit asset

209
3,302

151
3,394

Deferred tax assets
Other

14,543
3,536

11,873
3,525

Allowance for doubtful accounts

(319)

(251)

Total investments and other assets

41,17738,381

87,63884,501

339,729

348,358

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net

Intangible assets
Goodwill
Leased assetsInvestments and other assets

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2022

As of March 31, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade

31,50034,715

Electronically recorded obligations - operating
Short-term borrowings

24,407
10,412

34,481
10,905Current portion of long-term borrowings
Lease liabilities

15,939
340

2,523
292

Income taxes payable
Contract liabilities

3,136
31,083

1,605
33,358Provision for bonuses for directors (and other officers)
Provision for warranties for completed construction

59
528

46
310

Provision for loss on construction contracts
Provision for loss on wind power generator business

702
734

388
512

Provision for business restructure
Other

1,617
13,9501,541
16,731

Total current liabilities

134,413

137,412

Non-current liabilities
Long-term borrowings

31,142

29,118

Lease liabilities
Deferred tax liabilities

608
351

581
352

Provision for retirement benefits for directors (and otherofficers)

41

44

Retirement benefit liability
Long-term guarantee deposits

12,341
7,551

11,174
7,056

Asset retirement obligations
Other1,377
819

1,401
578

Total non-current liabilities

54,23250,308

188,646

187,721

Shareholders' equity
Share capital

19,77819,799

Capital surplus
Retained earnings

5,510
123,790

5,531
131,093

Treasury shares(2,314)(2,315)

Total shareholders' equity

146,765

154,108

2,217
(453)

2,956
(359)

250
661

1,168
1,225

2,674

4,991

1,643

1,536

151,083

160,636

339,729

348,358

Total liabilities
Net assets

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Net sales

213,790

238,721

Cost of sales

165,974

189,340

Gross profit

47,81649,380

Direct selling costs
Indirect selling, general and administrative expenses

10,666
21,68912,432
23,101

Total selling, general and administrative expenses

32,35535,533

15,46013,846

Interest income
Dividend income

43704

50628

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

461
29555
–

Selling, general and administrative expenses

Operating profit
Non-operating income

Miscellaneous income

626

804

1,864

2,039

Interest expenses
Expenses for delayed delivery

281
18210
427

Share of loss of entities accounted for using equity method
Miscellaneous losses

–253

2285

Total non-operating income
Non-operating expenses

553

927

Ordinary profit

Total non-operating expenses

16,772

14,958Extraordinary income
Gain on sale of non-current assets

1,268

5,273

Gain on sale of investment securities
Gain on liquidation of subsidiaries and associates

2,235
–

415
151

Total extraordinary income

3,503

5,840

Extraordinary losses
Loss on sale of non-current assets

1227

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

369
94325
–

Loss on valuation of investment securities
Loss on inappropriate conduct in quality inspections

73–3441,383

539

2,280

Profit before income taxes

Total extraordinary losses

19,736

18,518

Income taxes - current

5,342

4,388

Income taxes - deferred

270

2,190

Total income taxes

5,613

6,578

Profit14,123

11,940

Profit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

5174

(34)

13,948

11,974

Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023
14,123

11,940

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges(2,745)
(167)

739
94

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

709
200965564(2,003)

2,363

12,11914,303

11,943

14,291176

12

Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of changes in equity
Fiscal year ended March 31, 2022
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

Retained earnings

19,758

5,490

20

20

Total shareholders'equity

Treasury shares

112,784(2,313)

135,719

Changes during period
Issuance of new shares

40

Dividends of surplus(2,942)(2,942)

Profit attributable to owners ofparent13,948

13,948Purchase of treasury shares

(1)

(1)

Net changes in items otherthan shareholders' equity–

Total changes during period
Balance at end of period

2020

11,005(1)

11,045

19,778

5,510

123,790(2,314)

146,765

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedges

4,962

(286)

Foreigncurrencytranslation
adjustment(458)

Remeasurementsof defined
benefit plans

461

Total accumulated
othercomprehensive
incomeNoncontrollinginterests

4,679

1,586

Total net
assets141,985

Changes during period
Issuance of new shares–

40

Dividends of surplus–(2,942)

Profit attributable to owners ofparent–

13,948Purchase of treasury shares–(1)

Net changes in items otherthan shareholders' equity(2,745)(167)

708200(2,005)

57(1,947)

Total changes during period(2,745)

(167)

708

200(2,005)

57

9,097

Balance at end of period

2,217(453)

250

661

2,674

1,643

151,083

7Fiscal year ended March 31, 2023
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

Retained earnings

19,778

5,510

20

20

Total shareholders'equityTreasury shares

123,790(2,314)

146,765

Changes during period
Issuance of new shares

41

Dividends of surplus(4,672)(4,672)

Profit attributable to owners ofparent11,974

11,974Purchase of treasury shares

(1)

(1)

Net changes in items otherthan shareholders' equity–

Total changes during period
Balance at end of period

20

20

7,302

(1)

7,343

19,7995,531

131,093(2,315)

154,108

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedges

2,217

(453)

Foreigncurrencytranslation
adjustment
250

Remeasurementsof defined
benefit plans

661

Total accumulated
othercomprehensive
incomeNoncontrollinginterests

2,6741,643

Total net
assets151,083

Changes during period
Issuance of new shares–

41

Dividends of surplus–(4,672)

Profit attributable to owners ofparent–

11,974Purchase of treasury shares–(1)

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

739

94

918

564

2,316

(107)

2,209

739

94

918

564

2,316

(107)

9,553

2,956

(359)

1,168

1,225

4,991

1,536

160,6368Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023
19,736

18,518Depreciation
Amortization of goodwill

6,183
165

6,572
164

Interest and dividend income
Interest expenses

(747)
281

(679)
210

Share of loss (profit) of entities accounted for using equity
method(29)

2

Loss (gain) on sale of investment securities
Loss (gain) on valuation of investment securities(2,140)73(415)344

Loss (gain) on sale of property, plant and equipment andintangible assets(1,266)(5,045)

Loss on retirement of property, plant and equipment andintangible assets

369

325

Loss (gain) on liquidation of subsidiaries and associates
Decrease (increase) in trade receivables

–
9,899

(151)
(10,390)

Increase (decrease) in trade payables
Decrease (increase) in inventories

3,629(8,458)

11,814(15,496)

Increase (decrease) in provision for warranties forcompleted construction

374(218)

Increase (decrease) in provision for loss on construction
contracts

222(314)

Increase (decrease) in provision for loss on wind power
generator business

(686)

(222)

Increase(decrease)in provision for loss on businessrestructure

(864)

(75)

Other, net(217)(328)

Subtotal

26,524

4,614

747

672

Interest paid
Income taxes refund (paid)(280)(4,664)(229)(6,044)

Net cash provided by (used in) operating activities

22,325(986)

Interest and dividends received

Cash flows from investing activities
Net decrease (increase) in time deposits

357

(428)

Purchase of property, plant and equipment and intangible
assets(8,805)(6,107)

Proceeds from sale of property, plant and equipment andintangible assets

1,968

6,134

Purchase of investment securitiesProceeds from sale of investment securities

(14)
3,501

(17)
1,173

Proceeds from liquidation of subsidiaries and associates
Proceeds from collection of long-term loans receivable–
9150
3Other, net

638(2,976)

947

Net cash provided by (used in) investing activities

9

(Millions of yen)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023
265

493

Proceeds from long-term borrowings
Repayments of long-term borrowings

2,300(1,950)

500(15,939)

Dividends paid
Dividends paid to non-controlling interests(2,942)(118)(4,672)(119)

Repayments of finance lease liabilities
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

(413)

(375)

(2,860)(20,112)551

752

Net increase (decrease) in cash and cash equivalents

17,040(19,399)

Cash and cash equivalents at beginning of period

88,759105,799

Cash and cash equivalents at end of period

105,799

86,40010