Financial Results for the Fiscal Year ended March 31, 2007
(Consolidated financial results have been prepared in accordance with accounting principles generally accepted in Japan)

May 16,2007
Company name:

HANWA Co.,Ltd.

Listed stock exchange:
Stock exchange code:

Tokyo, Osaka
8078

Representative:
Enquiries:

Shuji Kita
Tetsuro Akimoto(URL http://www.hanwa.co.jp)
President
Managing Director of Accounting Dept.
TEL 81 - 3 - 3544 - 2190

The date of Shareholders' Meeting:
The date of issue of audited financial statements:

June 28, 2007
June 29, 2007

The date of payout of dividend: June 29, 2007
(Rounded down to millions of yen)

１．Consolidated financial results for the fiscal year ended March 31, 2007
(1) Consolidated operating results（％ of change from previous year）

Net sales

Operating income

Ordinary income

Net income(Millions of yen)(％)

(Millions of yen)(％)

(Millions of yen)(％)

(Millions of yen)(％)

1,320,021
1,097,706

20.3
17.5

20,864
19,690

6.0(10.9)

19,17018,271

4.9(15.1)

11,423
10,5038.8(23.4)

Year ended March 31, 2007
Year ended March 31, 2006

Net income
per share

Net income
Ratio of net income to
Ratio of ordinary
Ratio of operating
per share(diluted) shareholders' equity income to total assets income to net sales

(yen)

(yen)

(％)

－
－

54.03
48.96

Year ended March 31, 2007
Year ended March 31, 2006

(％)

12.4
13.2

Note: Equity in earnings of unconsolidated subsidiaries and affiliates

4.3
4.6

(％)

1.6
1.8

Year ended March 31, 2007
Year ended March 31, 2006

－ million yen－ million yen

Shareholders'equity ratio

Shareholders' equity
per share(2) Consolidated financial position
Total assets

Net assets(Millions of yen)

(Millions of yen)

476,178
413,020

March 31, 2007
March 31, 2006

Note: Shareholders' equity(％)

98,254
86,145
As of March 31, 2007
As of March 31, 2006

20.5
20.9

(yen)

461.21406.6897,485 million yen－ million yen(3) Consolidated cash flows situation
Cash flows fromOperating activities

Cash flows from
Investing activities(Millions of yen)

(Millions of yen)

(36,192)
22,299Year ended March 31, 2007
Year ended March 31, 2006

Cash flows from
Financing activities(5,955)(14,079)

Cash and cash
equivalents at end of year
(Millions of yen)
(Millions of yen)

34,325(7,497)

10,22818,985

２．Cash dividends
Dividend payout ratio Dividend on shareholders'
Total amount ofdividend（Annual）
equity（Consolidated）（Consolidated）(Millions of yen)(％)(％)

Cash dividends per share
Interim Year-end Annual（effective date）(yen)
Year ended March 31, 2006
Year ended March 31, 2007
Year ending March 31, 2008
（estimated）

(yen)

(yen)

5.00
5.00

5.00
7.00

10.00
12.00

6.00

6.00

12.00

2,114
2,536

20.4
22.2

2.7
2.8

21.1

Note: Breakdown of the year-end dividend of the year ended March 31, 2007

the ordinary dividend of 5 yen
the commemorative dividend of 2 yen

３．Forecast of consolidated financial results for fiscal year ending March 31, 2008 （％ of change from previous year）
Net sales

Operating income

Ordinary income

Net income(Millions of yen) (％)(Millions of yen) (％)(Millions of yen) (％)(Millions of yen) (％)

Net income
per share(yen)

10,000
4.8
6,000
28.39
Interim674,000
8.3
10,8006.7
5.0
Annual
1,376,000
20,000
4.3
12,000
5.1
4.2
22,400
7.4
56.77* The above forecasts reflect assumptions and prospects based on the information currently available.They are subject
to a number of risks and uncertainties that could cause actual results to differ materially from this information.
－１－

HANWA co.,ltd.

Financial Results for the Fiscal Year ended March 31, 2007

《Consolidated Balance Sheets》(Rounded down to millions of yen)

Millions of yen
March 31, 2006

March 31, 2007

Increase(Decrease)

AssetsCurrent assets;
Cash and deposits
Trade notes and accounts receivable
Inventories
Deferred tax asset
OthersAllowance for doubtful receivables
Total current assets
Fixed assets;
Property and equipment;
Buildings and Structures
Land
OthersTotal property and equipment
Intangible assets
Investments and other assets;
Investment securities
Long-term loans receivable
Deferred tax asset
OthersAllowance for doubtful receivables
Total investments and other assets
Total fixed assets
Total assets

16,979208,225
76,053
1,355
25,467(736)
327,346

10,245259,372
88,2201,096
24,247(911)
382,271(6,734)
51,147
12,167(259)(1,220)(175)
54,925

11,37624,4503,373
39,200649

11,22724,453
5,150
40,831
701

(149)
3
1,777
1,631
52

33,805438
4112,657(1,118)45,82485,673413,020

38,167327
914,618(749)
52,37393,906476,178

4,362
(111)
(32)
1,961
369
6,549
8,233
63,158140,078
51,045
－
3,708
1,666
30,825
227,323

160,429
43,141
17,5004,050
1,693
24,280251,095

20,351(7,904)17,500342
27(6,545)23,772

10,00074,900
6,979
2,798
4,064
98,742
326,066808

10,000101,950
8,179
2,798
3,901
126,828
377,924－－
27,050
1,200
－
(163)
28,08651,858
－

－
－
－
－
－
－
－
－
－
－
－
－
－
－

45,651
3
40,660(109)
86,205－－－－－

11,405
838
(16)
(947)
11,280768
98,254476,178

－
－
－
－
－
－
－
－

45,651
2
31,288(16)
10,445(1,159)(67)
86,145413,020

－
－
－
－
－
－
－
－
－

－
－
－
－
－
－
－
－
－

Liabilities;
Current liabilities;
Trade notes and accounts payable
Short-term loans payable
Commercial paper
Income taxes payable
Accrued bonuses
OthersTotal current liabilities
Long-term liabilities;
Bonds payable
Long-term loans payable
Deferred tax liabilities
Deferred tax liabilities by land revaluation
OthersTotal long-term liabilities
Total liabilities
Minority interests

Net assets;
Shareholders' equity;
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Valuation and translation adjustments;
Net unrealized holding gains on securities
Deferred hedge profit and loss
Land revaluation difference
Foreign currency translation adjustments
Total valuation and translation adjustments
Minority interests
Total net assets
Total liabilities and net assets
Shareholders' equity;
Common stock
Capital surplus
Retained earnings
Land revaluation difference
Net unrealized holding gains on securities
Foreign currency translation adjustments
Treasury stock
Total shareholders' equity;
Total liabilities ,minority interests and shareholders' equity－２－

HANWA co.,ltd.

Financial Results for the Fiscal Year ended March 31, 2007

《Consolidated Statements of Income》(Rounded down to millions of yen)

Millions of yen
Year ended
March 31, 2006

Year ended
March 31, 2007

Increase(Decrease)

1,097,706
1,053,919
43,787

1,320,021
1,272,532
47,489222,315
218,613
3,702

24,096
19,69026,624
20,864

2,528
1,174

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Other income;Interest and dividend income
OthersTotal other income
Other expenses;
Interest expenses
OthersTotal other expenses
Ordinary income

1,826
561
2,387

1,633
1,199
2,832

(193)
638
445

2,542
1,263
3,806
18,271

3,233
1,294
4,527
19,170

691
31
721
899

Extraordinary losses
Loss on impairment of long-lived assets
Total extraordinary losses
Income before income taxes and minority interest

450
450
17,821――
19,170

(450)
(450)
1,349

Income, inhabitant & business tax - current
Income tax expense-deferred
Minority interest in net income
Net income

6,530
736
50
10,503

7,398
270
77
11,423

868
(466)
27
920

－３－

HANWA co.,ltd.

Financial Results for the Fiscal Year ended March 31, 2007

《Consolidated Statements of Changes in Net Assets》(Rounded down to millions of yen)

Millions of yen
Shareholders' equity
Capitalsurplus

Commonstock
Balance at March 31, 2006

2

45,651

Increase (decrease) during the term:
Cash dividends paid
Bonuses to directors
Staff and workers' bonuses and welfare
fund
Net income
Purchase of treasury stocks
Deposition of treasury stocks
Effect from change in scope of
consolidated subsidiaries
Net increase (decrease) during theterm, except for items undershareholders' equity
Total increase (decrease)
Balance at March 31, 2007

Retainedearnings

Total
shareholders'equityTreasury
stock
(67)

31,288(2,114)(150)(2,114)
(150)

(1)

(1)

11,423
(43)
1

0
214

－
45,6510
376,874

9,372
40,66011,423
(43)
1
214

(42)
(109)

9,330
86,205

Minority
interests

Total net
assets808

86,954

Millions of yen
Valuation and translation adjustments
Net
Total
ForeignLand
Deferred
unrealized
valuation
currency
hedge profit revaluation
holdingandtranslationdifference
and lossgains ontranslation
adjustments
securities
adjustments

Balance at March 31, 2006
Increase (decrease) during the term:
Cash dividends paid
Bonuses to directors
Staff and workers' bonuses and welfare
fund
Net income
Purchase of treasury stocks
Deposition of treasury stocks
Effect from change in scope of
consolidated subsidiaries
Net increase (decrease) during theterm, except for items undershareholders' equity
Total increase (decrease)
Balance at March 31, 2007－

10,445(16)(1,159)9,270(2,114)(150)(1)
11,423
(43)
1
214
959

838

－

211

2,009

(40)

1,969

959
11,405

838
838

－
(16)

211
(947)

2,009
11,280(40)
768

11,30098,254－４－

HANWA co.,ltd.

Financial Results for the Fiscal Year ended March 31, 2007

《Consolidated Statements of Cash Flows》(Rounded down to millions of yen)

Millions of yen
Year ended
Year ended
March 31, 2006 March 31, 2007

Increase(Decrease)

Cash flows from operating activities:
Income before income taxes
Depreciation and amortization
Loss on impairment of long-lived assets
Decrease in allowance for doubtful receivables
Interest and dividend income
Interest expense
Increase in trade receivables
Increase in inventories
Increase in trade notes and accounts payable
Other, net
Sub totalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities

17,821
1,969
450
(297)
(1,826)
2,542(3,185)(11,778)
21,2394,953
31,8881,660(2,477)(8,772)
22,29919,170
1,991
―
(189)
(1,633)
3,233(50,718)(11,408)
20,211(8,304)(27,649)
1,795(3,236)(7,101)(36,192)

1,349
22
(450)
108
193
691
(47,533)370(1,028)(13,257)(59,537)
135
(759)
1,671
(58,491)

Cash flows from investing activities:
Payment for time deposits
Proceeds from refund of time deposits
Payment for purchase of property and equipment
Proceeds from sale of property and equipment
Payment for purchase of investment securities
Proceeds from sale of investment securities
Decrease in short - term loans receivable, net
Increase in long - term loans receivableCollection of long-term loans receivable
Increase in loans receivableCollection of loans receivable
Other, net
Net cash used in investing activities

(569)
260
(7,899)40(5,278)
89
―
―
―
(724)
1,554
(1,551)(14,079)(7)309(2,593)14(5,488)
2,778
194
(20)
138
―
―
(1,282)(5,955)

562
49
5,306
(26)
(210)
2,689
―
―
―
―
―
269
8,124

Cash flows from financing activities:
Increase(decrease) in short-term loans, net
Increase in commercial paper, net
Proceeds from long-term debt
Repayments of long-term debt
Proceeds from issuance of bonds
Payment for cash dividends
Cash dividends paid to minority interest in consolidated subsidiaries
Other, net
Net cash provided by (used in) financing activities(26,846)―
29,470(17,050)
9,950(2,955)(49)(16)(7,497)

18,35917,50027,100(26,450)―(2,116)(25)(42)
34,32545,20517,500(2,370)(9,400)(9,950)839
24(26)
41,822

Effect of exchange rate changes on cash and cash equivalents
Net increase(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents from newly consolidated subsidiaries
Cash and cash equivalents at end of year

604
1,327
17,658―18,985(943)(8,765)18,9858
10,228(1,547)(10,092)
1,327
8(8,757)－５－

HANWA co.,ltd.

Financial Results for the Fiscal Year ended March 31, 2007

《Segment information》
Business segment information
The Companies' operations are classified into five business segments as follows:
Steel: Steel bars and shapes, steel plates and sheets, special steels, wire products, steel pipes,
and steelmaking raw materials
Non-ferrous metals: Nickel, copper, aluminium, lead, zinc, tin, antimony, other metals, and solar cell-relatedmaterials and products
Foods: Frozen seafoods and meat products
Petroleum and chemicals : Petroleum products, chemical products, and cement
Other business: Lumber, machinery, and others
Segment information by business category for the years ended March 31, 2006 and 2007, is as follows:(Rounded down to millions of yen)

Millions of yen

Year ended March 31, 2006
Steel
614,045599,574
14,470metals139,108
133,750
5,358

Petroleum Other
Total Corporate Consolidated
Foods & chemicals business―
1,097,706
87,624 210,254
46,672 1,097,706
86,874 207,745
44,906 1,072,850
5,165
1,078,016
749
2,509
1,766
24,855(5,165)
19,690Assets217,013
Depreciation
1,334
433
Loss on impairment long-lived assets
Capital expenditure
3,131

39,47074
1058

37,44032―
31

Non-ferrous

Net sales
Costs and expenses
Operating income

36,041
19―
230

13,092420―587

343,058
1,881
443
4,039

69,96187
6
67413,020
1,969
450
4,107

Millions of yen

Year ended March 31, 2007
Net sales
Costs and expenses
Operating income

Steel
689,187
674,851
14,335

metals242,952
235,708
7,243

Other
Total Corporate Consolidated
Foods & chemicals business―
1,320,021
91,953 237,342
58,585 1,320,021
91,362 235,110
56,543 1,293,577
5,579
1,299,157
591
2,232
2,041
26,444(5,579)20,864

AssetsDepreciation
Capital expenditure

253,362
1,379
1,765

64,28267
190

37,83029
29

Non-ferrous

Petroleum

34,64728
36

18,903404
347

409,026
1,909
2,368

67,15282
44476,178
1,991
2,412

Notes:
Corporate costs and expenses mainly consist of expenses of administrative departments.
Corporate assets mainly consist of cash and equivalents, investment securities and assets of administrative departments.

－６－