Consolidated Financial Results for the Year Ended March 31, 2020 (FY 2019)
Consolidated Statement of Income(Unaudited IFRS Results)

FY2018(¥ billion)

Overview of Consolidated Results for FY2019

ChangeFY20192,308.7
123.9

2,045.8
104.5-262.9-19.4(5.4%)(5.1%)-(0.3%)

-87.2
-0.7
36.0
1.5
0.6

-81.9
0.3
22.9
4.8
0.4

5.3
1.0
-13.1
3.3
-0.2

-0.2

0.0

0.2

0.4
-4.7

0.4
-3.9

0.0
0.8

5.6

4.7

-0.9

39.2
-10.0
29.2

29.3
-7.3
22.0

-9.9
2.7
-7.2

Owners of the parent

25.4

19.5

-5.9

Non-controlling interests

3.8

2.5

-1.3

For reference: Revenue

1,986.7

1,786.2

Sales*¹
Gross profit(Gross profit ratio)
Selling, general and administrative expenses
Provision for doubtful receivables
Operating income*¹
Gains on investments
Gains (losses) on disposal and sale ofproperty, plant and equipment and others
Impairment losses on property, plant andequipment and others
Other income (expense)
Finance expense
Share of profit of investments accounted forusing the equity method
Profit before tax
Income taxes
Profit for the year

Consolidated Statement of Financial Position

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

As of March 31,
2019

As of March 31,
2020

881.0
17.9
547.5
250.3
65.3
251.7
102.6
10.2
138.9
1,132.7
642.3
296.8
307.2
38.3
77.8
57.6
20.2
720.0
376.1
150.4
194.8
30.9
36.5
412.7
1,132.7

746.7
31.4
468.3
224.3
22.7
266.5
116.4
11.7
138.4
1,013.2
513.3
254.3
234.3
24.7
90.9
65.9
25.0
604.2
374.0
151.1
201.6
21.3
35.0
409.0
1,013.2

Business environment
Although U.S. domestic demand remained robust in an environment featuring improving employment and wages, the economy somewhat
decelerated. In Europe, the outlook remained unclear due to BREXIT. China’s economic growth slowed due mainly to the effects fromU.S.-China trade friction and the novel coronavirus pandemic. Overall, the global economy continues to slow.
Although Japan’s economy saw an expansion in public investment and recovered from the impact of the previous year’s heavy rainfall,
typhoons, earthquakes and other natural disasters, the economy continued to stall due to the effects of another series of natural disasters,including typhoons and heavy rains, following an increase in the consumption tax.
Business performance
Regarding the business environment, global steel demand declined year on year amid the aforementioned global economic slowdown.
Demand in Japan also fell due in part to declining capital investment and stagnating automotive demand. Steel prices were weak due to thissuppressed demand.
In this business environment, the Metal One Group focused on various strategies based on our Growth Strategy 2018 midterm
management plan, which we decided to maintain for another year as our Management Policy 2019. The policy outlines three core
concepts: reviewing optimal corporate structure for the Group’s trade and businesses, overhauling unprofitable trade and businesses, andstrengthening inter-Group alliances overseas.
As a result, the Metal One Group’s consolidated performance declined from that of the previous fiscal year, falling to ¥2,045.8 billion insales, a year-on-year decrease of 11.4%. Profit for the year attributable to owners of the parent dropped to ¥19.5 billion, a 23.3% decrease.
Highlights
1. Sales and gross profit
Sales decreased ¥262.9 billion, compared to the previous fiscal year, totaling ¥2,045.8 billion due to a decline in business volume, lower
average unit costs, and the impact of making Metal One Sumisho Tubular Products Co., Ltd. an equity-method associate in the fiscal year
under review.
As a result of lower sales and the weaker gross profit ratio, gross profit fell ¥19.4 billion, totaling ¥104.5 billion.
2. Selling, general and administrative expenses
Due mainly to the effects of making Metal One Sumisho Tubular Products an equity-method associate in the fiscal year under review,
costs decreased ¥5.3 billion year on year, totaling ¥81.9 billion.
3. Gains on investments and Gains (Losses) on property, plant and equipment
Due primarily to the recording of the integrated profit of Metal One Sumisho Tubular Products in the fiscal year under review as well as
higher gains on sales of equity in affiliates and subsidiaries compared with the contraction in the previous fiscal year, gains on investments
increased ¥3.3 billion over the previous fiscal year, reaching ¥4.8 billion.

*1 Sales and Operating income have been disclosed in accordance with Japanese standards for presentation(¥ billion)

June 10, 2020
Metal One Corporation

Change-134.3
13.5
-79.2
-26.0
-42.6
14.8
13.8
1.5
-0.5
-119.5-129.0
-42.5
-72.9
-13.6
13.1
8.3
4.8
-115.8
-2.1
0.7
6.8
-9.6
-1.5
-3.7
-119.5

4. Business results by transaction type
The Group’s domestic sales reached ¥1,021.4 billion (50% of total sales), a year-on-year decrease of ¥150.0 billion. Overseas sales reached¥1,024.4 billion (50% of total sales), a year-on-year decrease of ¥112.9 billion.
5. Total assets and total equity
Total assets decreased ¥119.5 billion, compared to the previous fiscal year end, totaling ¥1,013.2 billion due to a decline in trade and otherreceivables and inventories coinciding with a drop in business transactions.
Additionally, total equity fell ¥3.7 billion to ¥409.0 billion due mainly to a decrease in other components of equity accompanying anappreciation of the Japanese yen and a fall in market prices.
6. Interest-bearing debt
Due to decreased demand for working capital in connection with less business, the balance of borrowings was ¥320.2 billion, a ¥34.2
billion decrease from the previous fiscal year end.

Comprehensive Income
FY2018( ¥ billion)
Profit for the year
Gains (Losses) on other investments designated as FVTOCI
Exchange differences on translating foreign operations
Other

Comprehensive income

Number of Consolidated
Subsidiaries and Affiliates

Subsidiaries
91 (−3)Affiliates
37 (+1)

Owners of theparent

Non-controllinginterests

25.4
-3.1
-10
21.3

3.8
-0.1
0.3
04

FY2019Total(A)

29.2
-3.2
-0.7
025.3

Owners of theparent

Non-controllinginterests

19.5
-3.8
-5.5
0
10.2

2.5-0.3
-1.4
00.8

Total
(B)

Change(B−A)

22-4.1-6.9
011-7.2-0.9-6.2
0-14.3

Consolidated Financial Indicators
March 31, 2019 March 31, 2020

Total(Consolidated)

128 (−2)

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

Shareholders’ equity ratio

33.2%

36.9%

Net D/E ratio

0.9

0.8

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