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, 2022
(Based on Japanese GAAP)May 11, 2022
Company name:
The Japan Steel Works, Ltd.
Stock exchange listing: Tokyo
Stock code:5631
URL https://www.jsw.co.jp/
Representative:
Representative Director & President
General Manager, General Affairs
Inquiries:
Department
Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:
Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:
Holding of financial results meeting:toshio matsuo
hideo nakanishi

TEL

03-5745-2001

June 24, 2022
June 24, 2022
June 27, 2022
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, 2022 (from April 1, 2021 to March 31, 2022)(1) Consolidated operating resultsPercentages 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%
Year ended March 31, 2022
213,790
8.0
15,46051.2
16,772
56.4
13,948 102.3
Year ended March 31, 2021
198,041(9.0)
10,226(45.3)
10,724(46.1)
6,893(26.0)
Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
–
9.6
5.1
7.2
–
5.1
3.5
5.2

Diluted earnings pershare

Earnings per share
Yen
189.63
93.76

Year ended March 31, 2022
Year ended March 31, 2021
(2) Consolidated financial position

Total assets
As of March 31, 2022
As of March 31, 2021

Net assets

Equity ratio

Millions of yen
339,729
316,249

Millions of yen
151,083
141,985

Cash flows fromoperating activities
Millions of yen
22,325
14,712

Cash flows frominvesting activities
Millions of yen(2,976)(3,243)

Net assets per share
%
44.0
44.4

Yen
2,031.29
1,908.76(3) Consolidated cash flows

Year ended March 31, 2022
Year ended March 31, 2021Cash and cash equivalents
Cash flows fromfinancing activities
at end of period
Millions of yen
Millions of yen(2,860)105,799
2,767
88,7592. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2021
Year ended March 31, 2022
Year ending March 31, 2023
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

TotalYen

Yen

Yen

Yen

Yen

Millions of yen%%

––

17.50
22.50

––17.50
34.50

35.00
57.00

2,574
4,193

37.3
30.1

1.9
2.9

–

––––

1–

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Yen
Full year
266,000
24.4
21,50039.1
22,00031.2–––
4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2022
(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:
Yes
Changes in accounting policies due to other reasons:No
Changes in accounting estimates:
No
Restatement of prior period financial statements:
No(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, 2022

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 March 31, 2022

804,074 shares As of March 31, 2021

803,655 shares

73,555,306 shares Year ended March 31, 2021

73,528,887 shares

Average number of shares during the period
Year ended March 31, 20222

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

As of March 31, 2022

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade89,441
54,389106,239
55,840Electronically recorded monetary claims - operating
Merchandise and finished goods

2,416
2,550

3,723
4,735

Work in process
Raw materials and supplies

57,0196,126

62,863
6,985

Other
Allowance for doubtful accounts

10,889(190)

12,036(333)

Total current assets

222,643

252,091

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

23,0459,167

22,004
10,635Tools, furniture and fixtures, net
Land

1,463
7,987

1,436
7,989

Leased assets, net
Construction in progress

886
3,652

764
1,679

Total property, plant and equipment

46,20144,509Intangible assets
Goodwill

573

407

Leased assets
Other119
1,683

82
1,460

Total intangible assets

2,376

1,951

Investments and other assets
Investment securities

24,95019,602Long-term loans receivable
Distressed receivables

313
209

303
209

Retirement benefit asset
Deferred tax assets

2,807
13,685

3,302
14,543

Other
Allowance for doubtful accounts

3,395
(333)

3,536
(319)

Total investments and other assets

45,027

41,177

Non-current assets
Property, plant and equipment

Total non-current assets
Total assets

393,606

87,638316,249

339,729

(Millions of yen)
As of March 31, 2021

As of March 31, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade

50,52431,500Electronically recorded obligations - operating
Short-term borrowings–
10,147

24,407
10,412Current portion of long-term borrowings
Lease liabilities

1,950
386

15,939340

Income taxes payable
Advances received

2,484
17,9283,136–

Contract liabilities
Provision for bonuses for directors (and other officers)–
67

31,08359

Provision for warranties for completed construction
Provision for loss on construction contracts

153
479

528
702

Provision for loss on wind power generator business
Provision for business restructuring

1,421
2,482

734
1,617

Other

17,522

13,950Total current liabilities

105,548

134,41344,781775

31,142
608

362

351

Non-current liabilities
Long-term borrowings
Lease liabilities
Deferred tax liabilities
Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability

46

41

12,404

12,341Long-term guarantee deposits
Asset retirement obligations

8,4421,352

7,551
1,377

549

819

Other
Total non-current liabilities

68,71554,232

174,263

188,646

Share capital
Capital surplus

19,7585,490

19,7785,510

Retained earnings
Treasury shares

112,784(2,313)

123,790(2,314)

Total shareholders' equity

135,719

146,765

4,962

2,217

Deferred gains or losses on hedges
Foreign currency translation adjustment

(286)
(458)

(453)
250

Remeasurements of defined benefit plans

461

661

4,679

2,674

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive incomeValuation difference on available-for-sale securities

Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

4

1,586

1,643

141,985

151,083

316,249

339,729

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Net sales

198,041

213,790

Cost of sales

155,758

165,974

Gross profit

42,28347,816

Direct selling expenses
Indirect selling, general and administrative expenses

9,345
22,710

10,666
21,689Total selling, general and administrative expenses

32,05632,355

10,226

15,460Interest income
Dividend income

28511

43704

Foreign exchange gains
Gain on non-current assets rent

–
501

201
461

Share of profit of entities accounted for using equity method
Miscellaneous income

–
616

29
424

1,657

1,864

275

281

–
27

104
–

Selling, general and administrative expenses

Operating profit
Non-operating income

Total non-operating income
Non-operating expenses
Interest expenses
Compensation expenses
Share of loss of entities accounted for using equity method
Miscellaneous losses
Total non-operating expenses
Ordinary profit

858

167

1,160

553

10,724

16,772

7233

1,268
2,235

Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on transfer from business divestitures

2,540

–

Total extraordinary income

2,780

3,503

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

1474

1369

Loss on sale of investment securities
Loss on valuation of investment securities

69–

9473

Extraordinary losses

545

539

Profit before income taxes

Total extraordinary losses

12,96019,736

Income taxes - current

3,620

5,342

Income taxes - deferred

2,297

270

Total income taxes

5,917

5,613

Profit7,042

14,123

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

5148

174

6,893

13,948

Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2021

March 31, 2022
7,042

14,123

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

3,945(216)(2,745)(167)

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

(115)
1,511

709
200

Total other comprehensive income

5,124(2,003)

12,166

12,11912,032

11,943134

176

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, 2021
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

Retained earnings

19,737

5,383

21

21

Total shareholders'equity

Treasury shares

108,454(2,312)

131,262

Changes during period
Issuance of new shares

42

Dividends of surplus(2,573)(2,573)

Profit attributable to owners ofparent

6,893

6,893

Purchase of shares ofconsolidated subsidiaries

85

85

Purchase of treasury shares(0)Change in scope ofconsolidation

(0)

1010

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

21

106

4,330(0)4,457

19,758

5,490

112,784(2,313)

135,719

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedges

1,017

(69)

Foreigncurrencytranslation
adjustment(356)

Remeasurementsof defined
benefit plans(1,049)Total accumulated
othercomprehensive
incomeNoncontrollinginterests

(458)

1,688

Total net
assets132,492

Changes during period
Issuance of new shares

42

Dividends of surplus(2,573)

Profit attributable to owners ofparent

6,893

Purchase of shares of
consolidated subsidiaries

85Purchase of treasury shares(0)Change in scope ofconsolidation

10

Net changes in items otherthan shareholders' equity

3,945

(216)

(101)

1,511

5,138

(102)

5,035

Total changes during period

3,945

(216)

(101)

1,511

5,138(102)9,493Balance at end of period

4,962(286)

(458)

461

4,679

1,586

141,985

7

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

20

20

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)

708

200

(2,005)57(1,947)

Total changes during period(2,745)

(167)

708

200

(2,005)57

9,097

Balance at end of period2,217(453)

250

661

2,674

1,643

151,0838

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, 2021

March 31, 2022
12,96019,736

Depreciation
Amortization of goodwill

6,040
207

6,183
165

Interest and dividend income
Interest expenses(540)
275(747)281

27(29)

Loss (gain) on sale of investment securities
Loss (gain) on valuation of investment securities(163)–(2,140)
73

Loss (gain) on sale of non-current assets
Loss on retirement of non-current assets

(6)
474

(1,266)369

Loss (gain) on sale of businesses
Decrease (increase) in trade receivables(2,540)(7,132)–
9,899

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

2,014
6,570

3,629
(8,458)

Increase/decrease in consumption taxes payable/consumption
taxes refund receivable

(612)

(299)

Increase (decrease) in provision for loss on construction
contracts

(77)

222

Increase (decrease) in provision for loss on wind power
generator business–(686)

Increase (decrease) in business restructuring reserve
Other, net(3,114)
1,237(864)456

Subtotal

15,61826,524

556
(313)

747
(280)

Income taxes refund (paid)(1,149)(4,664)

Net cash provided by (used in) operating activities

14,712

22,325420(8,276)357(8,805)11(14)

1,968(14)

Proceeds from sale of investment securities
Proceeds from collection of long-term loans receivable

2,144
9

3,501
9

Proceeds from sale of businesses
Other, net

2,652
(190)

–
6Net cash provided by (used in) investing activities(3,243)(2,976)

Share of loss (profit) of entities accounted for using equity
methodInterest and dividends received
Interest paid

Cash flows from investing activities
Decrease (increase) in time deposits
Purchase of non-current assets
Proceeds from sale of non-current assets
Purchase of investment securities

9(Millions of yen)

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

Fiscal year ended

Fiscal year ended

March 31, 2021

March 31, 2022
99265

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

11,040(5,155)

2,300(1,950)

Dividends paid
Dividends paid to non-controlling interests(2,573)(123)(2,942)
(118)

(28)

–

Purchase of shares of subsidiaries not resulting in change inscope of consolidation
Repayments of finance lease liabilities

(490)

(413)

Net cash provided by (used in) financing activities

2,767(2,860)Effect of exchange rate change on cash and cash equivalents

(46)

551

Net increase (decrease) in cash and cash equivalents

14,18917,040Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from inclusion of74,477

88,75992–

88,759105,799

subsidiaries in consolidation
Cash and cash equivalents at end of period10