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, 2024
(Based on Japanese GAAP)May 10, 2024
Company name:

The Japan Steel Works, Ltd.

Stock exchange listing: Tokyo
Stock code:
5631

URL

https://www.jsw.co.jp/

Representative:

Representative Director & President
Executive Officer

toshio matsuo

Inquiries:

General Manager, General Affairs
Department

hideo nakanishi

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 24, 2024
June 24, 2024

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

June 25, 2024
NoHolding of financial results meeting:

Yes

TEL

03-5745-2001(for analysts and institutional investors)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2024 (from April 1, 2023 to March 31, 2024)(1) Consolidated operating results
Percentages 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, 2024
252,501
5.8
18,01430.1
19,945
33.3
14,278
19.2
Year ended March 31, 2023
238,72111.7
13,846(10.4)
14,958 (10.8)
11,974(14.1)
Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%–
8.5
5.6
7.1
–
7.8
4.3
5.8

Diluted earnings pershare

Earnings per share
Yen
194.02
162.75

Year ended March 31, 2024
Year ended March 31, 2023
(2) Consolidated financial position

Total assets
As of March 31, 2024
As of March 31, 2023

Net assets

Equity ratio

Millions of yen
366,775
348,358

Millions of yen
178,613160,636

Cash flows fromoperating activities
Millions of yen
21,707(986)

Cash flows frominvesting activities
Millions of yen(6,841)947

Net assets per share
%48.3
45.7

Yen
2,404.83
2,162.18(3) Consolidated cash flows

Year ended March 31, 2024
Year ended March 31, 2023

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(4,899)96,902(20,112)
86,4002. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2023
Year ended March 31, 2024
Year ending March 31, 2025
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

––

29.00
29.00––

29.00
30.00

58.00
59.00

4,267
4,342

35.6
30.4

2.8
2.6

–

37.00

–

37.00

74.00

135.1

3. Forecast of consolidated financial results for the year ending March 31, 2025 (from April 1, 2024 to March 31, 2025)
Percentages indicate year-on-year changes
Net sales
Full year

Millions of yen
265,000

Operating profit% Millions of yen
4.9
20,000Ordinary profit% Millions of yen
11.0
20,500

Profit% Millions of yen
2.8
15,500Earnings per share%
8.6

Yen
210.61

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2024
(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:
Changes in accounting policies due to other reasons:

No
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(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, 2024

74,399,910 shares As of March 31, 2023

74,387,779 shares

Number of treasury shares at the end of the period
As of March 31, 2024

804,752 shares As of March 31, 2023

804,399 shares

73,591,835 shares Year ended March 31, 2023

73,579,295 shares

Average number of shares during the period
Year ended March 31, 20242

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2023

As of March 31, 2024

AssetsCurrent assets
Cash and deposits
Notes receivable - trade87,286
1,826

97,613
1,129

Electronically recorded monetary claims - operating
Accounts receivable - trade

3,672
66,697

4,143
59,718Merchandise and finished goods
Work in process

5,668
76,245

6,292
81,293

Raw materials and supplies
Other

8,839
13,988

9,988
14,228

(369)

(198)

263,856

274,209

21,19723,927

Machinery, equipment and vehicles, netTools, furniture and fixtures, net

11,084
1,915

12,0852,363

Land
Leased assets, net

7,502
761

6,628
931

Construction in progress

2,121

787

Total property, plant and equipment

44,58346,723

242
30

80
13

Other

1,264

1,564

Total intangible assets

1,537

1,658

Investment securities
Long-term loans receivable

19,388300

25,276300

Distressed receivables
Retirement benefit asset

151
3,394

225
5,787

Deferred tax assets
Other

11,873
3,525

9,384
3,529

Allowance for doubtful accounts

(251)

(322)

Total investments and other assets

38,381

44,18284,501

92,565348,358

366,775

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net

Intangible assets
GoodwillLeased assets

Investments and other assets

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2023

As of March 31, 2024

Liabilities
Current liabilities
Notes and accounts payable - trade

34,71530,357

Electronically recorded obligations - operating
Short-term borrowings

34,481
10,90535,48912,360Current portion of long-term borrowings
Lease liabilities

2,523
292

4,844
387

Income taxes payable
Contract liabilities

1,605
33,3583,214
34,690

Provision for bonuses for directors (and other officers)
Provision for warranties for completed construction

46
310

44
52

Provision for loss on construction contracts
Provision for loss on wind power generator business

388
512

583
512

Provision for business restructure
Other

1,541
16,731

1,498
19,873

Total current liabilities

137,412143,909

Non-current liabilities
Long-term borrowings

29,11825,272

Lease liabilities
Deferred tax liabilities

581
352

771
318

Provision for retirement benefits for directors (and otherofficers)

44

44

Retirement benefit liability
Long-term guarantee deposits

11,174
7,056

9,168
6,716

Asset retirement obligations
Other

1,401
578

1,427
532

Total non-current liabilities

50,30844,251

187,721

188,161

Shareholders' equity
Share capital

19,79919,818

Capital surplus
Retained earnings

5,531
131,0935,550
141,103

Treasury shares(2,315)(2,316)

Total shareholders' equity

154,108

164,155

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

2,956
(359)

7,351
(644)

Foreign currency translation adjustment
Remeasurements of defined benefit plans

1,168
1,225

1,919
4,202

Total accumulated other comprehensive income

4,991

12,828

1,536

1,629

160,636

178,613348,358

366,775

Total liabilities
Net assets

Accumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024

Net sales
Cost of sales

238,721
189,340

252,501
195,688

Gross profit

49,38056,813

Selling, general and administrative expenses
Freight and packing costsSales commission
Other direct selling expenses
Personnel expenses
Retirement benefit expenses
Travel expenses
Research and development expenses
Other indirect selling, general and administrative expenses

7,583
3,641
1,207
9,999
323
807
4,219
7,750

8,174
4,403
931
11,042
277
994
4,643
8,331

35,53338,79913,84618,014

50
628
182
555
–
622

73
636
839
306
30
669

2,039

2,555

210
132
699

212
188
–
223

Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Gain on non-current assets rent
Share of profit of entities accounted for using equity method
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Compensation expenses
Share of loss of entities accounted for using equity method
Miscellaneous losses

927

624

Ordinary profit

Total non-operating expenses

14,95819,945Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on liquidation of subsidiaries and associates

5,273
415
151

1,092
644
–

5,840

1,737

227
325–
344
1,38313566
1,427–
473

2,280

2,480

Profit before income taxes

18,51819,201

Income taxes - current
Income taxes - deferred

4,388
2,190

5,118(365)

Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current assets
Impairment losses
Loss on valuation of investment securities
Loss on inappropriate conduct in quality inspections
Total extraordinary losses

Total income taxes

6,578

4,752

Profit11,94014,449Profit (loss) attributable to non-controlling interests
Profit attributable to owners of parent5(34)170

11,974

14,278

Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2023

March 31, 2024
11,94014,449Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

739
94

4,394(285)Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

965
564

794
2,976

2,363

7,880

14,30322,32914,291

22,115

12214

Total other comprehensive income
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, 2023
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

Retained earnings

19,778

5,510

2020

Total shareholders'equityTreasury shares

123,790(2,314)

146,765

Changes during period
Issuance of new shares

41

Dividends of surplus(4,672)(4,672)

Profit attributable to owners ofparent

11,974

11,974Purchase of treasury shares(1)(1)

Net changes in items otherthan shareholders' equity–

Total changes during period
Balance at end of period

2020

7,302

(1)

7,343

19,7995,531

131,093(2,315)

154,108

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedges

2,217

(453)

Foreigncurrencytranslation
adjustment
250

Remeasurementsof defined
benefit plans

661

Total accumulated
othercomprehensive
incomeNoncontrollinginterests

2,674

1,643

Total net
assets151,083

Changes during periodIssuance of new shares–

41

Dividends of surplus–(4,672)

Profit attributable to owners ofparent–

11,974Purchase of treasury shares–(1)

Net changes in items otherthan shareholders' equity

739

94

918

564

2,316(107)2,209

Total changes during period

739

94

918

564

2,316

(107)

9,553

2,956

(359)

1,168

1,225

4,991

1,536

160,636

Balance at end of period7

Fiscal year ended March 31, 2024
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

Retained earnings

19,7995,531

18

18

Total shareholders'equityTreasury shares

131,093(2,315)

154,108

Changes during period
Issuance of new shares

37

Dividends of surplus(4,268)(4,268)

Profit attributable to owners ofparent

14,278

14,278Purchase of treasury shares
Disposal of treasury shares(0)

Transfer of loss on disposal oftreasury shares

0(1)

(1)

00(0)

–

Net changes in items otherthan shareholders' equity–

Total changes during period
Balance at end of period

18

18

10,010(0)

10,046

19,8185,550

141,103(2,316)

164,155

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedges

2,956

(359)

Foreigncurrencytranslation
adjustment
1,168

Remeasurementsof defined
benefit plans

1,225

Total accumulated
othercomprehensive
incomeNoncontrollinginterests

4,991

1,536

Total net
assets160,636

Changes during period
Issuance of new shares–

37

Dividends of surplus–(4,268)

Profit attributable to owners ofparent–

14,278Purchase of treasury shares–(1)

Disposal of treasury shares–

0

Transfer of loss on disposal oftreasury shares––

Net changes in items otherthan shareholders' equity

4,394(285)

Total changes during period

4,394

Balance at end of period

7,351

750

2,976(285)

750

2,976

7,836

93

17,977

(644)

1,919

4,202

12,828

1,629

178,613

8

7,836

93

7,930

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, 2023

March 31, 2024
18,51819,201

6,572
164

7,743
161

–(8)

1,427
(192)

(679)
210

(709)
212

2(30)

(415)
344

(644)
–

Loss (gain) on sale of property, plant and equipment andintangible assets(5,045)(1,079)Loss on retirement of property, plant and equipment andintangible assets

325

566

Loss (gain) on liquidation of subsidiaries and associates
Decrease (increase) in trade receivables(151)(10,390)–
8,366

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

11,814(15,496)(2,982)(6,230)

Increase (decrease) in provision for warranties forcompleted construction

(218)

(257)

Increase (decrease) in provision for loss on wind power
generator business(222)–Depreciation
Amortization of goodwill
Impairment losses
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using equity
methodLoss (gain) on sale of investment securities
Loss (gain) on valuation of investment securities

Other, net(710)(756)

Subtotal

4,614

24,794

Interest and dividends received
Interest paid
Income taxes refund (paid)
Net cash provided by (used in) operating activities
Cash flows from investing activities
Net decrease (increase) in time deposits

672

708

(229)
(6,044)(212)(3,583)(986)

21,707(428)

207

Purchase of property, plant and equipment and intangible
assets(6,107)(9,864)

Proceeds from sale of property, plant and equipment andintangible assets

6,134

1,802

Payments for retirement of property, plant and equipment
Purchase of investment securities

(238)
(17)

(387)
(19)

Proceeds from sale of investment securities
Proceeds from liquidation of subsidiaries and associates

1,173150

1,320–

Proceeds from collection of long-term loans receivable
Other, net3277–
99

Net cash provided by (used in) investing activities

947(6,841)

9

(Millions of yen)

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

Fiscal year ended

Fiscal year ended

March 31, 2023

March 31, 2024
493

1,455

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

500(15,939)

1,000(2,525)

Dividends paid
Dividends paid to non-controlling interests(4,672)(119)(4,268)(120)

Repayments of finance lease liabilities
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

(375)

(439)

(20,112)(4,899)752

535

Net increase (decrease) in cash and cash equivalents(19,399)

10,502

Cash and cash equivalents at beginning of period

105,799

86,400Cash and cash equivalents at end of period

86,40096,90210