Financial Results for the Fiscal Year ended March 31, 2019
(Japan GAAP)May 13, 2019
Company name:

HANWA Co.,Ltd.

Listed stock exchange: Tokyo

Stock exchange code:

8078(URL http://www.hanwa.co.jp)

Representative:
Hironari Furukawa President
Enquiries:
Yoichi Nakagawa Director, Senior Managing Executive Officer
Scheduled date of Shareholders' Meeting:Jun 21 2019
Scheduled date of issue of audited financial statements: Jun 24, 2019
Scheduled date of payout of dividend:
Jun 24, 2019

Phone +81-3-3544-2000(Amounts less than one million yen are rounded down)

１．Consolidated financial results for the Fiscal Year ended March 31, 2019 (April 1, 2018 to March 31, 2019)(1) Consolidated operating results（Percentage indicate a change from the previous year）
Net sales
Fiscal Year
ended March 31, 2019
ended March 31, 2018

(Millions of yen)(％)

Operating income

Ordinary income(Millions of yen)

(Millions of yen)(％)

2,074,600
15.8
28,90410.2
1,791,118
18.3
26,217
11.9
Note: Comprehensive income
For the Fiscal Year ended March 31, 2019
For the Fiscal Year ended March 31, 2018
Net income
per share

Fiscal Year
ended March 31, 2019
ended March 31, 2018

Profit attributable toowners of the Company(％)(Millions of yen)(％)

23,395(8.3)
13,914(19.8)
25,502
11.3
17,354
6.1
3,444 million yen(84.7) %22,532 million yen
7.3 %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)

(％)

(％)

(％)

342.41
－
7.4
2.6
1.4
427.04
－
9.7
3.3
1.5
* Effective October 1, 2017, HANWA consolidated its common shares at the ratio of 5 shares to 1 share. Accordingly, net
income per share has been calculated as if the said share consolidation was conducted at the beginning of the previous
fiscal year.
* From the beginning of the 1st Quarter of the fiscal year ended March 31, 2019, HANWA adopted the “Partial
Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No.28, February 16, 2018) and its
relevant Guidance. The results for the fiscal year ended March 31, 2018 are those after retrospective application.

(2) Consolidated financial position
Total assets

Shareholders'equity ratio

Net assets(Millions of yen)

(Millions of yen)

Net assets
per share
(％)

(yen)

933,307
202,459
20.2
4,632.27
860,344
203,700
21.8
4,621.96
Note: Shareholders' equity
As of March 31, 2019
188,245 million yen
As of March 31, 2018
187,828 million yen* Effective October 1, 2017, HANWA consolidated its common shares at the ratio of 5 shares to 1 share. Accordingly, net
assets per share has been calculated as if the said share consolidation was conducted at the beginning of the previous
fiscal year.
* From the beginning of the 1st Quarter of the fiscal year ended March 31, 2019, HANWA adopted the “Partial
Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No.28, February 16, 2018) and its
relevant Guidance. The results for the fiscal year ended March 31, 2018 are those after retrospective application.
As of March 31, 2019
As of March 31, 2018

(3) Consolidated cash flows situation
Cash flows fromOperating activities
Fiscal Year
ended March 31, 2019
ended March 31, 2018

Cash flows from
Investing activities(Millions of yen)

(Millions of yen)

15,417(19,755)(20,623)(39,971)

Cash flows from
Financing activities

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

28,132
66,43558,38434,855

２．Cash dividends
Cash dividends per share
1st Quarter 2nd Quarter 3rd Quarter
Year ended March 31, 2018Year ended March 31, 2019Year ending March 31, 2020
（estimated）

Year-end

Total
Dividend on
Dividend
amount ofshareholders'payout ratio
equitydividend
Annual(Consolidated) (Consolidated)(Annual)(yen) (Millions of yen)
(％)
(％)

(yen)

(yen)

(yen)

(yen)

－
－

10.00
75.00

－
－

75.00
75.00

－
150.00

－

75.00

－

75.00

150.00

5,079
6,095

29.3
43.8

2.8
3.2

31.7

* Effective October 1, 2017, HANWA consolidated its common shares at the ratio of 5 shares to 1 share. Accordingly, theamount for the total annual dividends per share for the year ended March 31, 2018 is omitted and shown as a dash.
In case the share consolidation was taken into consideration, the 2nd Quarter dividend and annual dividend for the fiscal
year ended March 31, 2018 would be 50.00 yen and 125.00 yen, respectively.
－1－３．Forecast of consolidated financial results for fiscal year ending March 31, 2020 (April 1, 2019 to March 31, 2020)
Net sales

Operating income(Millions of yen) (％)(Millions of yen) (％)（Percentage indicate a change from the previous year）
Profit attributable to
Net income
Ordinary income
owners of theper share
Company(Millions of yen) (％) (Millionsof yen) (％)(yen)

Annual2,200,000
6.0
35,50022.8
28,00019.7
19,20038.0472.50* The above forecasts reflect assumptions and prospects based on the information currently available. They are subject
to a various risks and uncertainties that could cause actual results to differ materially from this information.

－2－

HANWA Co., Ltd.

Financial Results for the Fiscal Year ended March 31, 2019

《Consolidated Balance Sheets》(Amounts less than one million yen are rounded down)

Millions of yen
March 31, 2018

March 31, 2019

AssetsCurrent assets;
Cash and deposits
Trade notes and accounts receivable
Electronically recorded monetary claims
Securities
Inventories
Advance payments
OthersAllowance for doubtful receivables
Total current assets

36,198400,317
25,416683
134,877
19,05428,074(481)
644,140

59,307416,394
36,637
1,190
140,633
49,361
21,967(504)
724,987

20,72432,402
11,34164,4693,426

22,17633,864
12,821
68,862
5,031

109,781
20,366374
18,688(902)
148,308
216,204
860,344

101,900
21,162385
12,304(1,327)
134,426
208,319
933,307

Current liabilities;
Trade notes and accounts payable
Short-term loans payable
Commercial paper
Current portion of bonds payable
Income taxes payable
Accrued bonuses
Provision for product warranties
OthersTotal current liabilities

266,595
116,245
10,00010,121
5,050
2,474
391
40,851
451,730

285,82292,851
10,021
3,486
2,647
253
59,833454,916Long-term liabilities;
Bonds payable
Long-term loans payable
Deferred tax liabilities
Deferred tax liabilities by land revaluation
Retirement benefits liabilities
OthersTotal long-term liabilities
Total liabilities

40,055
147,601
4,522
1,633
4,943
6,157
204,913656,643

50,034208,936
3,173
1,591
5,950
6,245
275,931730,847

45,651
131,045(3,726)
172,969

45,651
139,036(3,737)
180,949

14,342
(169)
2,963
3,110
(5,388)14,85815,872
203,700
860,344

10,80061
3,343(1,435)(5,473)
7,295
14,214202,459
933,307

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

Liabilities;

Net assets;
Shareholders' equity;
Common stock
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income
Net unrealized holding gains on securities
Deferred hedge profit and loss
Land revaluation difference
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets－３－

HANWA Co., Ltd.

Financial Results for the Fiscal Year ended March 31, 2019

《Consolidated Statements of Income and Comprehensive Income》(Amounts less than one million yen are rounded down)

Millions of yen
Year ended
March 31, 2018
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Other income;Interest income
Dividend income
Foreign exchange gain
OthersTotal other income
Other expenses;
Interest expenses
Loss on investment in affiliates
Foreign exchange loss
Commission fee
OthersTotal other expenses
Ordinary income

Year ended
March 31, 2019

1,791,118
1,718,922
72,1952,074,600
1,995,378
79,22245,977
26,21750,31828,904

1,747
1,127
316
1,339
4,531

4,195
1,383
―
1,387
6,965

3,245
127
―
648
1,225
5,246
25,502

5,052
75
3,331
2,616
1,397
12,474
23,395Extraordinary income
Gain on sale of property and equipment
Gain on sales of investment securities
Reversal of allowance for business loss of affiliates
Total extraordinary income
Extraordinary loss;
Loss on sale of property and equipment
Loss on retirement of property and equipment
Loss on impairment of property and equipment
Loss on natural disaster
Loss on devaluation of investments securities
Loss on devaluation of investments in capital
Provision of allowance for doubtful accounts of affiliates
Provision for product warranties
Loss on disposal of property and equipment
Total extraordinary loss
Income before income taxes and minority interest

―
165
512
678

416
―
―
416

―
―
―
―
181
217
―
345
―
744
25,435

202
236
251
32
1,820
―
203
―
109
2,856
20,955

Income, inhabitant & business tax - current
Income tax expense-deferred
Total income taxes
Net income

8,410
(95)
8,315
17,120

7,396
(266)
7,130
13,825

Net income attributable to
Net income attributable to owners of the Company
Net income(loss) attributable to non-controlling interests

17,354(233)

13,914
(88)

1,762
(311)
316
587

(3,549)
230
(799)
(79)

3,057

(6,183)

5,411
22,532(10,381)3,444

21,501

5,964

1,031

(2,520)

Other Comprehensive Income
Net unrealized holding gains on securities
Deferred hedge profit and loss
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income of associates accounted
for using equity method
Total other comprehensive Income
Comprehensive Income
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income(loss) attributable to non-controllinginterests－４－

HANWA co.,ltd.

Financial Results for the Fiscal Year ended March 31, 2019

《Consolidated Statements of Changes in Net Assets》(Amounts less than one million yen are rounded down)

Millions of yen
Shareholders' equity
Common Capitalstock
surplus
Balance at March 31, 2017

45,651

Increase (decrease) during the term:
Cash dividends paid
Change of scope of consolidated
subsidiaries
Change of scope of equity method
Reversal of land revaluationdifference
Net income attributable toowners of the parent
Purchase of treasury stocks
Capital increase from purchase ofstock of consolidated subsidiaries
Capital increase from sales ofstock of consolidated subsidiaries
Others
Net increase (decrease) during
the term, except for items undershareholders' equity
Total increase (decrease)
Balance at March 31, 2018

Accumulated other comprehensive income

Net
Total
RetaineTreasury sharehol unrealized
holding
d
stock
ders'
gains onearnings
equity securities(3,720) 159,709(4,063)(4,063)(4,063)

(25)

(25)

(25)

－

－

－

2

2

2

17,354

17,354

17,354

(6)

(6)

－

－

－

－

－

－

－

－

－

－

－
45,651－ 13,266－ 131,045(6) 13,260(3,726) 172,969

142

2,966

1,062

1,762

(311)

(2)

2,047

1,762
14,342

(311)
(169)

(2)
2,963

2,047
3,110

(6,037) 10,713

Total
net
assets－ 117,778(6)

12,580

Total
DeferredForeign
Remeasure
MinorityLand
valuation
hedge
currency
ments ofandrevaluation translationinterests
definedprofit anddifference adjustments benefit plans translation
loss
adjustments

648

4,144

648
4,144
(5,388) 14,858

1,214 171,637

14,65818,803

14,658 32,063
15,872 203,700

Millions of yen
Shareholders' equity
Common Capitalstock
surplus
Balance at March 31, 2018

45,651

Increase (decrease) during the term:
Cash dividends paid
Change of scope of consolidated
subsidiaries
Change of scope of equity method
Reversal of land revaluationdifference
Net income attributable toowners of the parent
Purchase of treasury stocks
Capital increase from purchase ofstock of consolidated subsidiaries
Capital increase from sales ofstock of consolidated subsidiaries
Others
Net increase (decrease) during
the term, except for items undershareholders' equity
Total increase (decrease)
Balance at March 31, 2019

Accumulated other comprehensive income

Net
Total
RetaineTreasury sharehol unrealized
holding
d
stock
ders'
gains onearnings
equity securities(3,726) 172,969(6,095)(6,095)(6,095)

569

569

569

(17)

(17)

(17)

(379)

(379)

(379)

13,914

13,914

13,914

(1)

(1)

－

－

－

－

－

－

(9)

(9)

－

－

－
45,651－ 7,991－ 139,036(9)(11) 7,979(3,737) 180,948

－５－

(169)

2,963

3,110

(5,388) 14,858

Total
net
assets－ 131,045(1)

14,342

Total
DeferredForeign
Remeasure
MinorityLand
valuation
hedge
currency
ments ofandrevaluation translationinterests
definedprofit anddifference adjustments benefit plans translation
loss
adjustments(3,542)230

379(4,545)(85)(3,542)
10,800

230
61

379
3,343

(4,545)(1,435)(85)(5,473)(7,562)

15,872 203,700(1,657)(9,220)(7,562) (1,657) (1,240)
7,295 14,214 202,459

HANWA co.,ltd.

Financial Results for the Fiscal Year ended March 31, 2019

《Consolidated Statements of Cash Flows》(Amounts less than one million yen are rounded down)

Millions of yen
Year ended
March 31, 2018Year ended
March 31, 2019

Cash flows from operating activities;
Income before income taxes
Depreciation and amortization
Amortization of goodwill
Increase(decrease) in allowance for doubtful receivables
Interest and dividend income
Interest expense
Equity in earnings of affiliated companies (gain)
Gain on sale of property and equipment
Gain on sales of investment securities of unconsolidated subsidiaries
Reversal of allowance for business loss of affiliates
Loss on sale of property and equipment
Loss on retirement of property and equipment
Loss on impairment of property and equipment
Loss on natural disaster
Loss on devaluation of investments securities
Loss on devaluation of investments in capital
Provision of allowance for doubtful accounts of affiliates
Provision for product warranties
Loss on disposal of property and equipment(Increase)decrease in trade receivables(Increase)decrease in inventories
Increase(decrease) in trade notes and accounts payable(Increase)decrease in deposits received
Increase(decrease) in advanced payment
Increase(decrease) in retirement benefits
Other, net
Sub totalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities

25,435
4,240
532
(193)
(2,875)
3,245
127
―
(165)
(512)
―
―
―
―
181
217
―
345
―
(82,227)(21,619)
69,366(4,733)
3,957
992(6,298)(9,982)
3,681(3,257)(10,196)(19,755)

20,955
4,513
671
422
(5,578)
5,052
75
(416)
―
―
202
236
251
32
1,820
―
203
―
109
(24,019)(4,357)
17,181
21,097(29,789)
1,009
13,731
23,404
5,858(4,919)(8,926)
15,417

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 acquisition of investment securities
Proceeds from sale and redemption of investment securities
Net increase(decrease) from acquisition of consolidated subsidiaries(Increase)decrease in short - term loans receivable, net
Increase in long - term loans receivableCollection of long-term loans receivable
Other, net
Net cash provided by (used in) investing activities(3,039)3,553(4,650)144(35,461)
1,137
1,176
11,665(15,037)
978(436)(39,971)(2,030)2,446(7,718)1,261(8,325)
1,156―(4,435)(5,049)4,224(2,153)(20,623)

Cash flows from financing activities;
Increase(decrease) in short-term loans, net
Increase(decrease) in commercial paper, net
Proceeds from long-term debt
Repayments of long-term debt
Proceeds from issuance of bonds
Payment for redemption of bonds
Proceeds from stock issuance to minority shareholders
Payment for cash dividends
Cash dividends paid to minority interest in consolidated subsidiaries
Other, net
Net cash provided by (used in) financing activities

12,1855,000
84,237(53,860)
9,951
(503)
13,580(4,063)(28)(64)
66,435(19,091)(10,000)
91,161(37,272)
19,892(10,121)―(6,089)(48)(298)
28,132(203)
6,504
27,206
1,144―
34,855(0)
22,92634,855576
25
58,384

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
Increase in cash and cash equivalents from newly consolidated subsidiaries
Increase in cash and cash equivalents resulting from mergers with unconsolidated subsidiaries

Cash and cash equivalents at end of period－６－

HANWA co.,ltd.

Financial Results for the Fiscal Year ended March 31, 2019

《Segment information》
Overview of the reportable segments
The Group’s reportable segments are determined on the basis that separate financial information for such segments is available andexamined periodically by the Board of Directors, which makes decisions regarding the allocation of management resources and assesses
the business performances of such segments.
The Group’s main business is buying and selling of various products with a focus on steel, and the business department, which is divided
according to products handled or service contents, mainly carries out business activities. For this reason, the Group consists of businesssegments with the business department as the basis. The 6 reportable segments are “steel business,” “metal and alloy business”, “nonferrous metal business”, “food business”, “petroleum and chemical business”, and “Overseas sales subsidiaries”.
The main products and services that fall under these reportable segments are listed below.
Steel： Steel bars and shapes, steel plates and sheets, special steels, wire products, steel pipes, and steelmaking raw materials
Metals and alloys： Nickel, chromium, silicon, manganese and ferroalloys
Non-ferrous metals： Aluminum, copper, and zinc (recycling business)
Foods：Sea foods and livestock products
Petroleum and chemicals： Petroleum products, industrial chemicals, chemicals, and recycled fuelOverseas sales subsidiaries： Wholesale trade, general merchandise
Sales, income/loss, assets, liability, and other amounts by reportable segment(Amounts less than one million yen are rounded down)

Fiscal Year ended March 31, 2018

Millions of yen

Reportable segment
Steel
Net sales
Customers
Inter-segment
Total
Segment income(loss)
Segment assets
Other
Depreciation
Depreciation of Goodwill
Interest income
Interest expenses
Revenue from investment inaffiliates
Investment in affiliates
Property, plant and equipment
and Intangible assets increase

Metals Non-ferrous& alloys metals

920,269 198,330
11,678
4,869
931,948 203,200
20,324
4,958
411,938 214,999

97,356
1,704
99,0602,038
23,528

Foods

Overseassales& chemicals
subsidiarie

Petroleum

Subtotal

98,876 233,926 167,388 1,716,148
601
6,768 54,289 79,912
99,477 240,695 221,678 1,796,060
1,057
2,164
950 31,494
41,945 47,896 35,956 776,264

Other

Total

74,970 1,791,118
1,628 81,541
76,598 1,872,659
691 32,185
29,978 806,243

Adjustment― 1,791,118(81,541)―(81,541) 1,791,118(6,683) 25,502
54,101 860,344

3,197
326
182
2,358

98
56
1,227
2,607

240
67
5
270

33
―
20
391

211
82
52
253

62
―
110
685

3,842
532
1,599
6,568

304
―
10
204

4,147
532
1,610
6,772

93
―
137
(3,527)

4,240
532
1,747
3,245

242

(513)

―

―

―

15

(255)

127

(127)

―

(127)

4,023

38,125

―

―

―

107

42,257905

43,162―

43,162

4,803

47

127

11

99

48

5,137

760

5,898

42

5,941

Fiscal Year ended March 31, 2019

Millions of yen

Reportable segment
Steel
Net sales
Customers
Inter-segment
Total
Segment income(loss)
Segment assets
Other
Depreciation
Depreciation of Goodwill
Interest income
Interest expenses
Revenue from (Loss on)
investment in affiliates
Investment in affiliates
Property, plant and equipment
and Intangible assets increase

Consolidated

Metals Non-ferrous& alloys metals

1,037,297 274,839

10,676

8,085
1,047,974 282,924
17,393
6,386
494,499 197,548

Foods

Overseassales& chemicals
subsidiarie

Petroleum

Subtotal

95,445 100,093 233,664 253,495 1,994,837
1,640
1,296 10,585 61,259 93,543
97,085 101,389 244,250 314,755 2,088,380
950
1,543
2,165
1,024 29,464
21,966 45,120 40,319 57,045 856,500

Other

Total

79,763 2,074,600
2,751 96,294
82,514 2,170,895
966 30,431
31,445 887,945

Adjustment

Consolidated― 2,074,600(96,294)―(96,294) 2,074,600(7,035) 23,395
45,362 933,307

3,499
465
241
2,961

97
56
3,522
5,473

224
67
6
328

30
―
21
557

183
82
36
282

58
―
200
1,779

4,093
671
4,028
11,381

328
―
11
204

4,421
671
4,040
11,58691―
154(6,533)

4,513
671
4,195
5,052

(290)

74

―

―

―

(51)

(267)

192

(75)

―

(75)

3,670

35,493

―

―

―

246

39,410

1,095

40,505―40,505

8,034

163

228

60

144

41

8,671

458

9,130

76

9,207

Notes:
1. “Other” comprises businesses that are not included in reportable segments, such as lumber section and machinery section.
2. Adjustments are as follows:(1) Adjustments for segment income include intersegment elimination and Group costs that have not been distributed to reportable segments. These
group costs consist mainly of expenses of administrative departments.

(2) Adjustments for segment assets include Group assets that have not been distributed to reportable segments. These group assets consist mainlyof cash and cash equivalents, investment securities and assets of administrative departments.
(3) Adjustments for depreciation include mainly depreciation and amortization expenses of group assets.
(4) Adjustments for interest income and interest expenses include intersegment elimination, revenue and expense that have not been distributed toreportable segments.
(5) Adjustments for property, plant and equipment and intangible assets increase are increases in Group assets.

－７－

May 13, 2019

Highlights of Consolidated Financial Results for FY2018(Japan GAAP)HANWA Co., Ltd.

Outline of Financial Results for the FY2018
・As for the this fiscal year, net sales have increased by 16% in the same period of the previous year, hence reached to 2,074.6billion yen, due tobetter market of steel products and metal resources than the same period of previous year, as well as sales expansion of ferro-alloy and increasein net sales in overseas subsidiaries.Net profit was 13.9billion yen, decreased by 20%, due to increase in interest expenses, foreign exchange
loss as opposed to the gain in the same period of the previous year, and loss on devaluation of investments securities as extraordinary loss.We
・paid 75 yen as interim dividend and will pay additional 75 yen as the end of this fiscal year dividend. Our annual dividend payout for this fiscal
year will be 150 yen.

Operating Results
Net sales
Gross profit
SG&A expenses
Operating income

Year-on-year

FY2018FY20172,074.6

1,791.1

Change

283.4

72.1

7.0

10%

50.3

45.9

4.3

9%

26.2

2.6

Net sales have increased by 16% from the same period of theprevious year.This was due to bettetr market of steel products
than the same period of previous year, as well as sales expansionof ferro-alloy and increase in net sales in overseas subsidiaries.

6.9

4.5

2.4

54%

Non-operating expenses

12.4

5.2

7.2

138%

Ordinary income

23.3

25.5

(2.1)

-8% (Non-operating income/expenses)

Extraordinary gain

0.4

0.6

(0.2)

-39%

Income before income
taxes and others

2.8

0.7

2.1

284%

20.9

25.4

(4.4)

-18%

7.1

8.3

(1.1)

-14%

13.8

17.1

(3.2)

-19%

13.9
(0.0)
342.4117.3(0.2)
427.04(3.4)
0.1(84.63)

-20%
-62%
-20%

3.4

22.5

(19.0)-85%

Income taxes
Net income
Owners of the Company(loss)
Non-controlling interests(loss)

EPS (yen)Comprehensive
incomeSegment
Information

Net sales
FY2018FY2017

Non-operating income has increased 2.4 billion yen and Nonoperating expenses increased 7.2 billion yen. The breakdown of
the main causes is as follows.
interest income: increase of 2.4 billion yen(YoY)
foreign exchange gain/loss:
gain of 0.3 billion yen (last year)
loss of 3.3 billion yen (this year)
interest expenses: increase of 1.8 billion yen(YoY)
commission fee: increase of 1.9 billion yen(YoY)(Extraordinary gain/loss)
・Loss on devaluation of investments securities 1.8 billion yen ：mainly due to decline in listed stocks
・Loss (gain) on sales and disposals of fixed assets: due to sale ofcompany residence and dormitory
gain of 0.4 billion yen / loss of 0.7 billion yen

FY2018

860.3

72.9

9%

724.9
208.3

644.1
216.2

80.8
(7.8)

13%
-4%

730.8

656.6

74.2

11%

363.2
303.9
*
161%/131%

325.5
289.3
154%

37.6
14.6
7pt

12%
5%
―

202.4

203.7

(1.2)

-1%

Shareholders' equity ratio

180.9
7.2
14.2
4,632.55
188.2
20.2/22.8*%

172.9
14.8
15.8
4,621.96
187.8
21.8%

7.9
(7.5)
(1.6)
10.59
0.4
-1.6pt

5%
-51%
-10%
0%
0%
―

Cash Flow

FY2018FY2017(Current assets)(Fixed assets)
Total liabilities(Net interest-bearing debt)

Net DER
Total net assets

FY2017(Valuation & translation
adjustments)(Minority interests)
BPS (yen)
Shareholders' equity

Cash flows from operating
activities
Cash flows from investing
activities
Cash flows from financing
activities
Cash and cash equivalents
at end of periodrate

Main Factors

1st half

2,000

Steel

1,047.9

931.9

12%

17.3

20.3

-14%

Metals & alloys

282.9

203.2

39%

6.3

4.9

29%

Non-ferrous metals

97.0

99.0

-2%

0.9

2.0

-53%

Foods
Petroleum & chemicals

Overseas sales
subsidiaries
Total for reportablesegments
Other

101.3

99.4

2%

1.5

1.0

46%

244.2

240.6

2%

2.1

2.1

0%

314.7

221.6

42%

1.0

0.9

8%

2,088.3

1,796.0

16%

29.4

31.4

-6%

82.5

76.5

8%

0.9

0.6

40%

Total

2,170.8

1,872.6

16%

30.4

32.1

-5%

Adjustment(96.2)(81.5)

-18%

(7.0)

(6.6)

-5%

Consolidated

2,074.6

1,791.1

16%

23.3

25.5

-8%

Topics・ May. Acquired additional stocks of the coil center in Malaysia, Tatt Giap Steel Centre Sdn. Bhd. and became our subsidiary
・ Jul. Succeed to insulation construction business from Bridgestone Diversified Products Japan Co.,Ltd.
・ Mar. Acquired an interst in operating company Waterberg JV Resources from JOGMEC including all metal marketing rights

Main Factors

rate(Total Assets)

Total assets increased by 9% from the end of the previous year, due
to increase in Advanced payment and Cash and Deposits.
Advanced payment: 49.3 billion yen (+159% from the end of theprevious year)Cash and Deposits: 59.3 billion yen (+64% from theend of the previous year)(Liabilities)
Total liabilities increased by 11% from the end of the previous year,
due to the increase in trade payables and long term loans. As interestbearing debt increased by 12%, net debt-equity ratio was turned into
161%（*131%).

(Net assets)
Total net assets decreased by 1% from the end of the previous year,
due to the carryover of retained earnings, decrease of foreign currencytranslation adjustments and net unrealized holding gains on securities.
Meanwhile shareholders' equity ratio was 20.2%(*22.8%), which is
1.6 percentage points lower than the end of the previous year.
*Reflecting equity credit attributes of the subordinated loan

Year-on-year
ChangeMain Factors

rate

15.4

(19.7)

35.1―(Operating cash flows)(20.6)(39.9)

19.3△48%(Investment cash flows)

28.1

66.4

(38.3)

△58%

58.3

34.8

23.5

68%

Due to increase in trade payables and advanced payments.

Due to purchase of investment securities and tangible fixed assets.

(Financial cash flows)
Due to increase in long-term loans and corporate bonds.

2nd half【Quarterly Operating Results】

2,074.6

2,200.0600

1,791.1
1,514.0

1,000

1,069.6

954.1

798.4

500
(Steel business)
While strong steel demands increased net sales, segment income
decreased due to the pace of the market rise being slowed down andtaking time to shift cost price onto selling price.
(Metals & alloys business)
Net sales and segment income increased due to strong price level ofnickel and sales expansion of stainless steel and ferro-alloy.
(Non-ferrous metals business)
While international commodity markets have remained on a level withthe same period of the previous year, copper and E-scrap sales andsegment income decreased due to slump in domestic demand for metal
scrap by China’s restriction of the import of miscellaneous metal scrap
and foreign exchange loss.
(Foods business)
Rising price of salmon and crab and strong sales of chicken increased
net sales and segment income.
(Petroleum & chemicals business)
Despite high market of petroleum products, net sales and segment
income became nearly flat, due to the merger of Oil refiners andslowdown in demand for heating oil in mild winter climate.
(Overseas sales subsidiaries)
Revenue increased due to sales expansion of steel products inIndonesia and bunker fuel and metal scrap in Singapore.

Change【Changes in Net Sales】

1,500

Segment income
rate

933.3

Total assets

10% (SG&A expenses)

Non-operating income

Extraordinary loss

Mar. 2018(Equity capital)

SG & A expenses have increased 4.3 billion yen from the same
period of previous year. 2.3 out of 4.3 billion yen was
accounted for newly consolidated subsidiaries.
Our personnel expenses have increased 2.4 billion yen,including 1.5 billion yen from newly consolidated subsidiaries.

Comparison with Mar. 2018

Mar. 2019

Financial Position(Interest-bearing debt)

16% (Net sales)

79.2

28.9

Main Factors

rate(Unit: billion yen, rounded down to 0.1 billions of yen)

715.6

836.9

1,004.9

FY2016FY2017FY2018400

Net sales
469.5

484.5

7.3

7.4

507.4

516.3
7.5

6.9

3

【Changes in Net Income】

20
10

2nd half

17.3

10.1

8.8

6.2

8.5

6.5

FY2016FY2017FY2018

13.9

200

7.3

100

Net sales

FY20192018/1Q

2Q

3Q

4Q

Interest-bearing debt

Net DER
363.2
325.5
1.6

(*Reflecting subordinated loan）

3

237.5

259.6

1.4

1.4

1.5

(1.3＊)FY2015FY2016FY2017FY20182100Forecast(Annual)

400
300

19.2

16.3

4Q

【Changes in Interest-bearing Debt】

1st half

30

1
2017/3Q(forecast)

5

6.1

0

FY2019

9
7

8.1

200

0

Operating income 553.3

497.4

FY2019(forecast)

FY2018change0Cash Dividends

FY2017FY2018FY2019(estimated)

2,200.0

2,074.6

6%

Interim (yen)

50.00

75.00

75.00

Operating income

35.5

28.9

23%

Year-end (yen)

75.00

75.00

75.00

Ordinary income

28.0

23.3

20%

Annual (yen)125.00150.00150.00Net income attributableto owners of parent

19.2

13.9

38%

Dividend payout ratio

29%

44%

32%