Consolidated Financial Results for the Year Ended March 31, 2023 (FY2022)
Consolidated Statement of Income

Revenue
Gross profit(Gross profit ratio)
Selling, general and administrative expenses
Provision for doubtful receivables
Operating income*¹
Losses on investments

Gains (losses) on property, plant and equipment andothers

Other income (expense)
Finance expense
Share of profit of investments accounted forusing the equity method
Profit before tax
Income taxes
Profit for the year
Owners of the parent

Non-controlling interests

Overview of Consolidated Results for FY2022(Unaudited IFRS Results)

FY2021(¥ billion)

ChangeFY2022Business environment

2,007.8
119.0(5.9%)
-76.4
-0.7
41.9
-5.1

2,396.2
139.7(5.8%)
-84.2
-0.7
54.8
-0.2

388.4
20.7
(▲0.1%)
-7.8
0.0
12.9
4.9

-1.3

0.8

2.1

1.0
-2.7

0.3
-8.3

-0.7
-5.6

10.4

8.7

-1.7

44.3
-11.9
32.4
28.1
4.3

56.1
-10.9
45.2
41.5
3.7

11.8
1.0
12.8
13.4
-0.6

*1 Operating income has been disclosed in accordance with Japanese standards for presentation

AssetsLiabilities and equity

Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other current assets
Non-current assets
Property, plant and equipment
Intangible assets and goodwill
Other non-current assets
Total assets
Current liabilities
Borrowings
Trade and other payables
Other current liabilities
Non-current liabilities
Borrowings
Other non-current liabilities
Total liabilities
Equity attributable to owners of the parent
Common stock and additional paid-in capital

Retained earnings
Other components of equity
Non-controlling interests
Total equity
Total liabilities and equity

In the fiscal year under review, the pace of recovery in the global economy was slowed by rising inflation
around the world and increasing interest rates in various countries to counter it. The rise in inflation wasspurred by such complex factors as the prolonged Russia-Ukraine conflict and supply chain disruptions
caused by another spike in COVID-19 cases in China.
In Japan, despite feeling the effects of rising inflation, the economy gradually recovered as capital
investment remained firm against a backdrop of improving business performance and gradually
recovering personal consumption on the back of easing restrictions.

Business performance

Regarding the business environment, global steel demand decreased year on year due in part to rising
raw material and fuel prices and slowing construction investment amid financial tightening. Demand
increased slightly overall in Japan due to a year-on-year increase in the construction, automotive, andindustrial machinery sectors despite a decrease in the civil engineering and ship building sectors.
Conditions strengthened in the steel market, reflecting soaring raw material prices in product prices anda tightening supply-demand balance as blast furnace manufacturers consolidated facilities.
In this business environment, after establishing the themes of transformation and growth in the Mediumterm Management Plan 2024, the Metal One Group worked to transform itself by enhancing its efficiency
and differentiation using digital technology as well as to consider and carry out growth strategies inregions with high growth potential based on geopolitical risks.
Amid the aforementioned efforts and rising steel market, the Metal One Group’s consolidated
performance increased from that of the previous fiscal year, with revenue growing to ¥2,396.2 billion, ayear-on-year increase of 19.3%. Profit for the year attributable to owners of the parent rose to ¥41.5billion, a 47.9% increase.

Highlights

1. Revenue and gross profit

Due mainly to a rising steel market, revenue increased ¥388.4 billion, compared to the previous
fiscal year, totaling ¥2,396.2 billion (Japan-related: ¥951.9 billion; Overseas-related: ¥1,444.3billion). Gross profit rose ¥20.7 billion, totaling ¥139.7 billion.

2. Selling, general and administrative expenses

Due in part to foreign exchange effects from yen depreciation, costs increased ¥7.8 billion year onyear, totaling ¥84.2 billion.

Consolidated Statement of Financial(¥ billion)

June 12, 2023
Metal OneAs of March 31, As of March 31,
2022
2023
884.8
925.7
13.5
15.6
514.2
543.8
322.0
318.5
35.0
47.8
227.0
222.8
96.9
97.1
10.9
11.3
119.1
114.4
1,111.8
1,148.5
599.2
635.8
278.5
280.7
294.6
318.4
26.1
36.7
74.1
53.5
53.0
35.1
21.0
18.3
673.3
689.3
400.3
420.3
151.2
151.2
220.1
232.8
29.0
36.4
38.2
38.9
438.5459.2
1,111.8
1,148.5

Change
40.9
2.1
29.6
-3.5
12.8
-4.2
0.2
0.4
-4.7
36.7
36.6
2.2
23.8
10.6
-20.6
-17.9
-2.7
16.0
20.0
0.0
12.7
7.4
0.7
20.7
36.7

3. Gains (losses) on investments and gains on property, plant and equipment(losses) Due to a rebound from the previous fiscal year, losses on investments amounted to ¥0.2billion (narrowing ¥4.9 billion year on year) while a ¥0.8 billion gain was recorded on property,
plant and equipment, marking a ¥2.1 billion reversal from losses in the previous fiscal year.

4. Share of profit of investments accounted for using the equity method

Due to a decrease in profit of investments using the equity method overseas, the overall share fell
¥1.7 billion year on year to ¥8.7 billion.

5. Total assets

Total assets increased ¥36.7 billion, compared to the previous fiscal year end, totaling ¥1,148.5
billion due mainly to an increase in trade and other receivables attributable to such factors as risingsteel prices and the depreciating yen.

6. Interest-bearing debt

Due to the creation of capital as we built up net income, the balance of borrowings was ¥315.8billion, a ¥15.7 billion increase.

7. Total equity

Total equity rose ¥20.7 billion year on year to ¥459.2 billion due mainly to the increase in net

Number of Consolidated
Subsidiaries and Affiliates

Consolidated Financial Indicators

Subsidiaries Affiliates Total (Consolidated)
Invested businesses
Companies in Japanand overseas

Total

65 (-4)17 (-1)82 (-5)22 (-7) 87 (-11)― 17 (-1)
22 (-7) 104 (-12)

Note: Figures in parentheses () show changes from the previous year.

March 31, 2022 March 31, 2023

Shareholders’ equity ratio
Net D/E ratio

36.0%
0.8

36.6%
0.7

Shareholders’ equity ratio = Equity attributable to owners ofthe parent ÷ Total assets
Net D/E ratio = (Borrowings − Cash and cash equivalents) ÷Equity attributable to owners of parent