Financial Results for the Second Quarter ended September 30, 2013
(Consolidated financial results have been prepared in accordance with accounting principles generally accepted in Japan)

November 7, 2013
Company name:

HANWA Co.,Ltd.

Listed stock exchange: Tokyo

Stock exchange code:

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

Representative:
Enquiries:

Hironari Furukawa
Atsuhiro Moriguchi

The date of issue of audited financial statements:

President
Director, Managing Executive Officer
TEL 81 - 3 - 3544 - 2197
November 14, 2013 The date of payout of dividend: December 4, 2013
(Rounded down to millions of yen)

１．Consolidated financial results for the second quarter ended September 30, 2013
(1) Consolidated operating results（％ of change from the same period of previous year）
Net sales
For the second quarter
ended September 30, 2013
ended September 30, 2012

(Millions of yen)(％)

Operating income

Ordinary income(Millions of yen)

(Millions of yen)(％)

Net income(％)(Millions of yen)(％)

790,724
7.5
7,023
39.6
6,751
60.5
3,792
735,573(3.6)
5,032(50.2)
4,206(58.4)(87)
Note: Comprehensive income
For the second quarter ended September 30, 2013 12,771 million yen- ％For the second quarter ended September 30, 2012
(1,833) million yen- ％Net income
per share

For the first quarter
ended September 30, 2013
ended September 30, 2012

Net income
per share(diluted)

(yen)

(yen)

18.30
(0.42)－－(2) Consolidated financial position
Total assets(Millions of yen)

576,438
552,908

September 30, 2013
March 31, 2013

Note: Shareholders' equity

Shareholders'equity ratio

Net assets(Millions of yen)

130,308
120,674
As of September 30, 2013
As of March 31, 2013

Shareholders' equity
per share

(％)

22.1
21.4
127,758 million yen
118,232 million yen(yen)616.51570.50２．Cash dividends
Cash dividends per shareFirst quarter
Second quarter
Third quarter
Year-end(yen)
(yen)
(yen)
(yen)

（effective date）
Year ended March 31, 2013
Year ending March 31, 2014
（estimated）

－－

4.00
6.00

Annual(yen)

－

8.00

12.00

－

6.00

12.00

３．Forecast of consolidated financial results for fiscal year ending March 31, 2014 （％ of change from previous year）
Net sales

Operating income

Ordinary incomeNet income(Millions of yen) (％)(Millions of yen) (％)(Millions of yen) (％)(Millions of yen) (％)

Net income
per share(yen)Annual
1,660,000
9.8
15,80026.5
14,000
57.8
8,200
73.7
39.57
* 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 Second Quarter ended September 30, 2013

《Consolidated Balance Sheets》(Rounded down to millions of yen)Millions of yen
March 31, 2013

September 30, 2013 Increase(Decrease)

AssetsCurrent assets;
Cash and deposits
Trade notes and accounts receivable
Inventories
OthersAllowance for doubtful receivables
Total current assets

23,285
293,752
96,60922,505(852)
435,301

27,185
290,850
105,544
21,281(808)
444,052

3,900(2,902)
8,935(1,224)44
8,751

29,582
25,48555,067736

30,23828,61258,850
1,365

656
3,127
3,783
629

39,31725,565(3,080)61,802
117,607552,908

51,852
23,710(3,393)72,169132,385
576,438

12,535(1,855)(313)
10,367
14,77823,530Current liabilities;
Trade notes and accounts payable
Short-term loans payable
Commercial paper
Current portion of bonds payable
Income taxes payable
Accrued bonuses
OthersTotal current liabilities

164,301
113,500
11,00010,0502,971
1,891
18,247321,962

163,115140,336
9,000
10,060432
1,944
20,732
345,622(1,186)
26,836(2,000)10(2,539)
53
2,485
23,660Long-term liabilities;
Bonds payable
Long-term loans payable
Employees' retirement benefits
OthersTotal long-term liabilities
Total liabilities

20,00080,625220
9,425
110,270
432,233

20,00066,486250
13,770100,507446,129―(14,139)30
4,345(9,763)
13,89645,651
4
72,867(1,434)
117,088

45,651
4
73,567(1,439)117,783

―
―
700
(5)
695

2,667
120
116
(1,761)
1,143
2,442
120,674
552,908

10,163
59
116
(364)
9,974
2,549
130,308
576,438

7,496
(61)
―
1,397
8,831
107
9,634
23,530

Fixed assets;
Property and equipment;
Land
OthersTotal property and equipment
Intangible assetsInvestments and other assets;
Investment securities
OthersAllowance for doubtful receivables
Total investments and other assets
Total fixed assets
Total assets

Liabilities;

Net assets;
Shareholders' equity;
Common stock
Capital surplus
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
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets－２－HANWA co.,ltd.

Financial Results for the Second Quarter ended September 30, 2013

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

Second quarter
ended
September 30,2012

Second quarter
ended
Increase(Decrease)
September 30,
2013

Millions of yen

Net sales
Cost of sales
Gross profit

735,573
714,907
20,665

790,724
766,379
24,34555,15151,472
3,680

Selling, general and administrative expenses
Operating income

15,633
5,032

17,321
7,023

1,688
1,991

402
286
125
481
1,296

388
345
474
443
1,651(14)
59349
(38)
355

1,468
653
2,121
4,206

1,446
476
1,923
6,751

(22)
(177)
(198)
2,545

255
4,102
4,358
(151)

―
283
283
6,467

(255)
(3,819)(4,075)
6,618

Income taxes
Income before minority interest
Minority interest in net income
Net income

(54)
(97)
(10)
(87)

2,658
3,809
17
3,792

2,712
3,906
27
3,879

Minority interest in net income
Income before minority interest

(10)
(97)

17
3,809

27
3,906

Other Comprehensive Income
Net unrealized holding gains on securities
Deferred hedge profit and lossForeign currency translation adjustments
Total other comprehensive Income
Comprehensive Income

(895)
(757)
(83)
(1,736)(1,833)

7,497
(61)
1,525
8,962
12,771

8,392
696
1,608
10,69814,604Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests(1,831)(2)

12,623147

14,454
149

Other income;Interest income
Dividend income
Foreign exchange gain
OthersTotal other income
Other expenses;
Interest expenses
OthersTotal other expenses
Ordinary income
Extraordinary loss;
Loss on impairment of long-lived assets
Loss on devaluation of investments securities
Total extraordinary loss
Income before income taxes and minority interest－３－HANWA co.,ltd.

Financial Results for the Second Quarter ended September 30, 2013

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

Millions of yen
SecondSecondquarter ended quarter ended
September
September
30, 2012
30, 2013

Increase(Decrease)

Cash flows from operating activities:
Income before income taxes
Depreciation and amortization
Loss on impairment of long-lived assets
Increase(decrease) in allowance for doubtful receivables
Interest and dividend income
Interest expense
Loss on devaluation of investments securities(Increase)decrease in trade receivables(Increase)decrease in inventories
Increase(decrease) 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

(151)
1,575
255
(148)
(688)
1,468
4,102
16,011
21,296(32,150)
4,495
16,066646(1,488)(1,389)13,8346,467
1,779―247(733)
1,446283
7,997(3,691)(6,010)
(869)
6,916
614
(1,409)(2,699)
3,423

6,618
204
(255)
395
(45)
(22)
(3,819)(8,014)(24,987)
26,140(5,364)(9,150)(32)
79(1,310)(10,411)

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 and redemption of investment securities(Increase)decrease in short - term loans receivable, net
Increase in long - term loans receivableCollection of long-term loans receivable
Other, net
Net cash used in investing activities(267)
265(2,765)
26(1,041)
2,507(893)(1)
19(408)(2,557)(66)
66(389)91(3,072)
7(799)(4)16
410(3,739)

201
(199)
2,376
65(2,031)(2,500)
94(3)
(3)
818
(1,182)

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
Payment for cash dividends
Cash dividends paid to minority interest in consolidated subsidiaries
Other, net
Net cash provided by (used in) financing activities(24,279)(4,000)
11,100(6,831)
9,955(35)(1,244)(40)(182)(15,557)

7,370(2,000)―(1,097)
9,948(10,010)(1,655)
(38)
(257)
2,261

31,6492,000(11,100)
5,734(7)(9,975)(411)
2(75)
17,818(261)(4,541)
23,411420
28
19,317891
2,835
23,1981,063―
27,0971,152
7,376(213)643(28)7,780

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

Cash and cash equivalents at end of period－４－HANWA co.,ltd.

Financial Results for the Second Quarter ended September 30, 2013

《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
Metals and alloys: Nickel, chromium, stainless scrap and solar cell-related materials and products
Non-ferrous metals: Copper, aluminium, lead, zinc, tin, antimony and other metals
Foods: Frozen seafoods and meat products
Petroleum and chemicals : Petroleum products, chemical products, and cement
Segment information by business category for the second quarter ended September 30, 2012 and 2013, is as follows:(Rounded down to millions of yen)

Second quarter ended September 30, 2012

Millions of yen

Reportable segment

Net sales
Customers
Inter-segment
TotalSegment income(loss)

Subtotal

Steel

Metals Non-ferrous& alloys metals

Foods

346,305
9,313
355,618
3,941

49,4081,213
50,622
1,248

45,782 201,368 674,746
326
2,868 14,619
46,109 204,236 689,366
401
319
6,300

31,882897
32,779389

Petroleum& chemicals

OtherTotal

60,827 735,573
21,849 36,469
82,676 772,043
673
6,974

Second quarter ended September 30, 2013Adjustment― 735,573(36,469)―(36,469) 735,573(2,767)
4,206

Millions of yen

Reportable segment

Net sales
Customers
Inter-segment
Total
Segment income(loss)

Consolidated

Subtotal

Steel

Metals Non-ferrous& alloys metals

Foods

369,135
10,017379,153
6,061

45,116
1,852
46,9691,140

38,946 226,666 716,381
414
4,244 17,345
39,361 230,911 733,726
793
811
9,490

36,515815
37,330682

Petroleum& chemicals

OtherTotal

74,343 790,724
24,482 41,827
98,826 832,552
(188)
9,301

Adjustment

Consolidated― 790,724(41,827)―(41,827) 790,724(2,549)
6,751

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

－５－