Note: This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy
between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results
for the Six Months Ended September 30, 2023
[Japanese GAAP]
November 7, 2023
Company name: Nakayama Steel Works, Ltd.
Stock exchange listing: Tokyo
Code number: 5408
URL: https://www.nakayama-steel.co.jp/
Representative: Kazuaki Hakomori,President
Contact: Mitsuaki Sakaguchi,Director
Phone: +81-6-6555-3035
Scheduled date of filing quarterly securities report: November 10, 2023
Scheduled date of commencing dividend payments: December 1, 2023
Availability of supplementary briefing material on quarterly financial results: Yes
Schedule of quarterly financial results briefing session: Yes(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Six Months Ended September 30, 2023 (April 1, 2023 to September 30, 2023)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable toNet salesOperating profit
Ordinary profit
owners of parent
Millions ofMillions ofMillions ofMillions of%%%%Six months ended
yenyenyenyen
September 30, 2023
September 30, 2022
(Note) Comprehensive income:

92,883(0.4)
6,558(15.7)
93,273
27.1
7,780
235.3
Six months ended September 30, 2023:¥
Six months ended September 30, 2022:¥
Basic earnings
per share

Six months ended
September 30, 2023
September 30, 2022

6,527
(15.3)
7,711
272.5
4,770 million [5,960 million [Diluted earnings pershare
Yen

Yen

81.18110.39-(2) Consolidated Financial Position
Total assets
Millions of yen
As ofSeptember 30, 2023
153,887
March 31, 2023
148,787(Reference) Equity: As of September 30, 2023:
As of March 31, 2023:

Net assets

Capital adequacy ratio

Millions of yen¥¥

100,456
96,859100,456 million
96,859 million

%

65.3
65.1

4,395
5,976(20.0) %]335.4%](26.4)
370.4

2. Dividends
Annual dividends
1stquarter-end

2ndquarter-end

3rdquarter-end

Yen

Yen

Yen

Yen

Yen

Fiscal year ended March 31, 2023

-33.00-22.00

55.00

Fiscal year ending March 31, 2024

-19.00-19.0038.00

Fiscal year ending March 31, 2024
(Forecast)(Note) Revision to the forecast for dividends announced most recently:
No(Note) Breakdown of the 2nd quarter dividend for the fiscal year ending March 31, 2024 :Commemorative dividend- yenSpecial dividend- yenYear-endTotal

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024(April 1, 2023 to March 31, 2024)(% indicates changes from the previous corresponding period.)
Profit attributable to Basic earnings perNet sales
Operating profit
Ordinary profit
owners of parent
shareMillions ofyen%Millions ofyen%Millions ofyen

Full year
180,000(4.5) 11,400(16.4) 11,000(Note) Revision to the financial results forecast announced most recently:
No%

Millions ofyen%

Yen(17.7)

6,800(33.5)

125.56* Notes:(1) Changes in significant subsidiaries during the six months ended September 30, 2023
(changes in specified subsidiaries resulting in changes in scope of consolidation):
New(Company name:
Exclusion:(Company name:No(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
September 30, 2023:
63,079,256 shares
March 31, 2023:
63,079,256 shares
2) Number of treasury shares at the end of the period:
September 30, 2023:
8,921,566 shares
March 31, 2023:
8,942,937 shares
3) Average number of shares outstanding during the period:
Six months ended September 30, 2023:
Six months ended September 30, 2022:

54,143,527 shares
54,136,565 shares))
YesQuarterly Consolidated Financial Statements
Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2023
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsElectronically recorded monetary claims operating
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery and equipment, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

As of September 30, 2023

16,775

16,60335,90836,6759,4728,838

16,705
5,632
12,465680(57)
97,582

15,378
5,726
16,560756(32)
100,507

6,770
13,47422,992
1,665
44,903544

7,116
13,714
22,616
2,292
45,739
490

3,150
1,364
1,283
(41)
5,756
51,204
148,787

3,626
2,380
1,182
(40)
7,149
53,379
153,887(Millions of yen)
As of March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of bonds payable
Accounts payable - otherAccrued expenses
Income taxes payable
Provision for bonuses
Provision for environmental measures
Provision for decommissioning and removal
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Provision for environmental measures
Provision for decommissioning and removal
Provision for loss on business of subsidiaries andassociates
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Revaluation reserve for landRemeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

As of September 30, 2023

20,577
1,631
2,620
27
1,726
1,876
3,270
1,135
237
41
2,697
35,842

24,130
2,106
2,590
3,042
1,839
2,160
1,072
11
41
575
37,571

7,629
2,985
1,001
233
362

7,343
3,119
1,001
233
362

1191652,437
1,314
16,08551,9272,379
1,255
15,85953,431

20,044
7,826
66,179(775)
93,27420,044
7,841
69,402(774)
96,514

1,213

1,586

0
2,421
(49)
3,585
96,859148,787

2,402
(47)
3,941
100,456
153,887

Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income (For the six months)(Millions of yen)
For the six months
ended September 30, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Selling expenses
General and administrative expenses
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodInsurance claim income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Rental expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sales of scraps
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

For the six months
ended September 30, 2023

93,27379,477
13,79692,883
79,981
12,902

2,612
3,403
6,016
7,780

2,687
3,655
6,343
6,558

28
45

27
51

94

83

8
78
256

66
57
285

123
74
127
325
7,711

71
69
175
316
6,527

3
539
164
707

551
189
106
847

478
190
669
7,748
2,548(775)
1,772
5,976
5,976

947
46
994
6,380
2,023
(38)
1,9854,395
4,395Quarterly Consolidated Statements of Comprehensive Income (For the six months)(Millions of yen)
For the six months
ended September 30, 2022
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable to non-controllinginterests

For the six months
ended September 30, 2023

5,976

4,395(22)06373(0)100(15)
5,960

374
4,770

5,960

4,770--