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 Year Ended March 31, 2023
[Japanese GAAP]May 9, 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,Managing Executive Officer
Phone: +81-6-6555-3035
Scheduled date of Annual General Meeting of Shareholders: June 28, 2023
Scheduled date of commencing dividend payments: June 29, 2023
Scheduled date of filing annual securities report: June 28, 2023
Availability of supplementary briefing material on annual financial results: No
Schedule of annual financial results briefing session: Yes(Amounts of less than one millions of yen are rounded down.)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Fiscal year ended
March 31, 2023
March 31, 2022
(Note) Comprehensive income:Millions ofyen%Millions ofyen%

188,51413.1
13,644
166,701
50.2
7,250
Fiscal year ended March 31, 2023:
Fiscal year ended March 31, 2022:

88.2
208.3
¥
¥

Millions ofyen

13,371
100.9
6,654
150.0
10,364 million
4,953 million

Basic earnings per Diluted earnings per Rate of return on
share
share
equityYen
Fiscal year ended
March 31, 2023
188.92
March 31, 2022
88.96
(Reference) Equity in earnings (losses) of affiliated companies:

Yen

Millions of
yen

%

[
[

Ordinary profit tototal assets ratio

%

11.0
5.6
Fiscal year ended March 31, 2023:
Fiscal year ended March 31, 2022:%

10,2274,815
109.2%]
60.1%]

112.4
104.4

Operating profit to
net sales ratio

%

%

9.1
5.0
¥
¥

7.2
4.3
169 million
135 million(2) Consolidated Financial Position
Total assets
As ofMarch 31, 2023
March 31, 2022
(Reference) Equity:

Net assets

Millions of yen

148,787
143,618
As of March 31, 2023:
As of March 31, 2022:

Capital adequacy ratio

Millions of yen¥¥

96,85988,931
96,859 million
88,931 million

Net assets per share

%

Yen

65.1
61.9

1,789.18
1,642.72(3) Consolidated Cash Flows
Cash flows fromoperating activities
Fiscal year ended
March 31, 2023
March 31, 2022

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at the endof period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

13,012(8,756)(3,460)(2,308)(8,541)
8,388

16,755
15,745

2. Dividends
Annual dividends
1st
2nd
3rd
quarter-end quarter-end quarter-end

Year-end

Total
dividends

Total

Fiscal year ended

Yen

Yen

Yen

Yen

March 31, 2022

-

4.00

-

12.00

16.00

March 31, 2023

-

33.00

-

22.00

55.00

-

19.00

-

19.00

38.00

Payoutratio(consolidated)

Yen Millions of yen

Dividends
to netassets(consolidated)

%

%

974

18.0

1.0

2,977

29.1

3.2

Fiscal year ending
March 31, 2024

30.3

(Forecast)(Note) Breakdown of the year-end dividend for the fiscal year ended March 31, 2023 :Commemorative dividend- yenSpecial dividend- yen
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 Basic earnings per
Net sales
Operating profit
Ordinary profit
to owners of parent
share
Six months ending
September 30, 2023
Full year

Millions ofyen%Millions ofyen%Millions ofyen%Millions of
yen

%

Yen

94,0000.86,100(21.6)

5,900(23.5)

3,400(43.1)

62.80

191,000

1.3

11,400(16.4)

11,000(17.7)

6,800(33.5)

125.61* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes inscope of consolidation): Yes
New(Company name:)
Exclusion:
１(Company name: Nakayama Mitsuboshi Steel Products, Ltd)(2) 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(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
March 31, 2023:
63,079,256 shares
March 31, 2022:
63,079,256 shares
2) Number of treasury shares at the end of the period:
March 31, 2023:
8,942,937 shares
March 31, 2022:
8,942,656 shares
3) Average number of shares outstanding during the period:
Fiscal Year ended March 31, 2023:
Fiscal Year ended March 31, 2022:

54,136,505 shares
54,136,692 shares

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Fiscal year ended
March 31, 2023
March 31, 2022

Millions ofyen

149,677
125,098

Operating profit%

Millions of
yen

19.6
66.2

12,1262,233

Ordinary profit%

Millions of
yen

443.0
-

11,946
2,646

Basic earnings per share

Diluted earnings per share

Yen

Yen

460.6937.09-

Fiscal year ended
March 31, 2023
March 31, 2022

Net income%

Millions of
yen

%

351.4
-

25,507
2,329

994.9
292.8

(2) Non-consolidated Financial Position
Total assets
As ofMarch 31, 2023
March 31, 2022
(Reference) Equity:

Net assets

Millions of yen

131,137
112,857
As of March 31, 2023:
As of March 31, 2022:

Capital adequacy ratio

Millions of yen¥¥

85,68962,54885,689 million
62,548 million

Net assets per share

%

Yen

65.3
55.4

1,582.85
995.94

Consolidated Financial Statements
Consolidated Balance Sheets(Millions of yen)
As of March 31, 2022
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
Accumulated depreciation
Buildings and structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
VehiclesAccumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Deferred tax assets
Guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

As of March 31, 2023

15,765

16,77531,53835,908

7,386

9,472

17,3383,284
15,815
1,654(94)
92,68816,705
5,632
12,465680(57)
97,582

31,719(24,896)
6,823
88,445(75,453)
12,992
838
(772)
66
4,178
(3,686)491
23,033
640
(470)
169
520
44,09731,894(25,123)
6,770
89,083(75,609)13,474
827
(786)
41
4,131
(3,690)441
22,992
321
(176)
145
1,037
44,903

273
273

544
544

2,785
1,215
8
2,352
239
(41)
6,559
50,929143,618

3,150
1,072
10
1,364
200
(41)
5,756
51,204
148,787(Millions of yen)
As of March 31, 2022
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
Accrued consumption taxes
Provision for bonuses
Provision for environmental measures
Provision for decommissioning and removal
Other
Total current liabilities
Non-current liabilities
Bonds payable
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 March 31, 2023

21,750
1,356
7,674
42
2,040
1,444
1,565
54
853
9
584
37,375

20,577
1,631
2,620
27
1,726
1,876
3,270
1,975
1,135
237
41
722
35,842

27
8,249
3,472
1,001
415
404

7,629
2,985
1,001
233
362

42

119

2,577
1,121
17,311
54,6862,437
1,314
16,08551,92720,044
7,826
58,364(775)
85,45920,044
7,826
66,179(775)
93,274

1,043

1,213

(0)
2,444
(16)
3,471
88,931
143,618

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

Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Millions of yen)
For the fiscal year
ended March 31, 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
Amortization of negative goodwill
Share of profit of entities accounted for using equity
methodRental income from real estate
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on securitization of receivables
Rental expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of scraps
Insurance claim income
Gain on sale of non-current assets
Gain on extinguishment of tie-in shares
Reversal of provision for loss on business of
subsidiaries and associates
Reversal of provision for environmental measures
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Compensation for damage
Impairment losses
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 fiscal year
ended March 31, 2023

166,701
146,903
19,797

188,514
162,454
26,0606,204
6,342
12,547
7,250

5,319
7,097
12,416
13,644

54
65
3

55
81
-

135

169

67
113
439

68
106
481

113
132
147
641
1,034
6,654

207
128
148
268
754
13,371

29
220

959
152
9
-

39

-

27
316

50
1,171

181
10
11
203
6,767
1,776
176
1,952
4,815
4,815

580
152
21
135
889
13,653
3,972
(546)
3,426
10,227
10,227

Consolidated Statements of Comprehensive Income(Millions of yen)
For the fiscal year
ended March 31, 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 ofparentComprehensive income attributable to non-controllinginterests

For the fiscal year
ended March 31, 2023

4,815

10,227

62
(0)
75

169
0
(32)

(0)

0

137
4,953

137
10,364

4,953

10,364--

Consolidated Statements of Changes in Equity
For the fiscal year ended March 31, 2022
(Millions of yen)
Shareholders' equity

Balance at beginningof period
Changes during
periodDividends ofsurplus
Reversal ofrevaluation reserve
for landProfit attributable toowners of parent
Purchase of treasury
sharesNet changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
periodShare capital

Capital surplus

20,044

7,826

Retainedearnings
53,850Treasury shares

Total
shareholders'equity(775)

80,945

(378)

(378)

77

77

4,815

4,815
(0)

(0)

-

-

4,514

(0)

4,514

20,044

7,826

58,364(775)

85,459

Accumulated other comprehensive income
Total
Valuation
Remeasurements accumulated Total net assets
difference on Deferred gains or Revaluationof defined
otheravailable-for-sale losses on hedges reserve for land
benefit plans comprehensive
securities
incomeBalance at beginningof period
Changes during
periodDividends ofsurplus
Reversal ofrevaluation reserve
for landProfit attributable toowners of parent
Purchase of treasury
sharesNet changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period

981

0

2,522

(92)

3,411

84,356

(378)
77
4,815
(0)
61

(0)

(77)

75

60

60

61

(0)

(77)

75

60

4,574

1,043

(0)

2,444

(16)

3,471

88,931

For the fiscal year ended March 31, 2023
(Millions of yen)
Shareholders' equity

Balance at beginningof period
Changes during
periodDividends ofsurplus
Reversal ofrevaluation reserve
for landProfit attributable toowners of parent
Purchase of treasury
sharesNet changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
periodShare capital

Capital surplus

20,044

7,826

Retainedearnings
58,364

Treasury shares

Total
shareholders'equity(775)

85,459(2,436)(2,436)23

23

10,227

10,227
(0)

(0)

-

-

7,814

(0)

7,814

20,044

7,826

66,179(775)

93,274

Accumulated other comprehensive income
Total
Valuation
Remeasurements accumulated Total net assets
difference on Deferred gains or Revaluationof defined
otheravailable-for-sale losses on hedges reserve for land
benefit plans comprehensive
securities
incomeBalance at beginningof period
Changes during
periodDividends ofsurplus
Reversal ofrevaluation reserve
for landProfit attributable toowners of parent
Purchase of treasury
sharesNet changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period

1,043

(0)

2,444

(16)

3,471

88,931(2,436)23
10,227
(0)
169

0

(23)

(32)

113

113

169

0

(23)

(32)

113

7,928

1,213

0

2,421

(49)

3,585

96,859

Consolidated Statements of Cash Flows(Millions of yen)
For the fiscal year
ended March 31, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Increase (decrease) in provision for environmental
measures
Increase (decrease) in provision for loss on business of
subsidiaries and associates
Interest and dividend income
Interest expenses
Loss (gain) on sales of scraps
Insurance claim income
Compensation for damage
Loss (gain) on extinguishment of tie-in shares
Loss on retirement of non-current assets
Loss (gain) on sale of property, plant and equipment
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Decrease (Increase) In operating guarantee deposit
Other, net
Subtotal
Income taxes refund
Income taxes paid
Proceeds from insurance
Compensation paid for damage
Payments associated with disaster loss
Gain on sales of scraps
Payment of demolition and removal costs
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Interest and dividends received
Loan advances to subsidiaries and associates
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Redemption of bonds
Dividends paid
Interest paid
Other, net

For the fiscal year
ended March 31, 2023

6,767
2,308
10
65
55
119
(75)

13,653
2,751
21
(37)
282
20
(63)

(51)

46

(39)

77

(119)
113
(220)
181
(28)
(5,424)(15,806)
4,989
(954)
(151)
(8,260)
123
(605)
(13)
(8,756)

(137)
207
(959)
(152)
152
580
(9)
(6,452)
1,635
(977)
2,893
1,000
415
14,948(2,349)
152
(152)
902
(488)
13,012(2,534)
117
157
(3)
(45)
(2,308)(3,734)
241
177
(145)
(3,460)

5,000
8,650
(4,366)
(42)
(379)
(113)
(359)

(5,000)(674)(42)(2,431)
(207)
(186)

Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting frommergerCash and cash equivalents at end of period

8,388(2,676)18,308(8,541)
1,010
15,745113-

15,745

16,755