Financial Results for the Fiscal Year ended March 31, 2013
(Consolidated financial results have been prepared in accordance with accounting principles generally accepted in Japan)

May 13, 2013
Company name:

HANWA Co.,Ltd.

Listed stock exchange:
Stock exchange code:

Tokyo, Osaka8078

Representative:
Enquiries:

Hironari Furukawa
Atsuhiro Moriguchi

The date of Shareholders' Meeting:
The date of issue of audited financial statements:(URL http://www.hanwa.co.jp)
President
Director, Managing Executive Officer
TEL 81 - 3 - 3544 - 2197
June 27, 2013
June 28, 2013

The date of payout of dividend: June 28, 2013
(Rounded down to millions of yen)

１．Consolidated financial results for the fiscal year ended March 31, 2013
(1) Consolidated operating results
Net sales(Millions of yen)(％)（％ of change from previous year）

Operating income

Ordinary income(Millions of yen)

(Millions of yen)(％)

Net income(％)(Millions of yen)(％)

1,511,324
1,564,250
Note: Comprehensive income

12,491(16.6)
1.9
(3.4)
8,871
(32.4)
4,720
12.0
14,976
8.1
13,116(2.8)
4,632(20.0)
Year ended March 31, 2013
6,600 million yen
6.2%
Year ended March 31, 2012
6,214 million yen
1.8%
Net income
Net income
Ratio of operating
Ratio of net income toRatio of ordinary
per share(diluted) shareholders' equity income to total assets income to net sales
per share

Year ended March 31, 2013
Year ended March 31, 2012

(yen)

(yen)

(％)

－
22.78
22.35
－
Note: Equity in earnings of unconsolidated subsidiaries and affiliates
Year ended March 31, 2013
Year ended March 31, 2012

(％)

(％)

4.1
1.6
2.4
4.1
Year ended March 31, 2013
Year ended March 31, 20120.8
1.0－ million yen－ million yen

Shareholders'equity ratio

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

Net assets(Millions of yen)

552,908
582,404

March 31, 2013
March 31, 2012

Note: Shareholders' equity(Millions of yen)

(％)

(yen)

21.4
19.5
118,232 million yen
113,629 million yen

120,674
115,956
As of March 31, 2013
As of March 31, 2012

570.50548.22(3) Consolidated cash flows situation
Cash flows fromOperating activities
Year ended March 31, 2013
Year ended March 31, 2012

Cash flows from
Investing activitiesCash flows from
Financing activities(Millions of yen)

(Millions of yen)

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

19,38011,970(5,106)(12,009)(16,363)
1,596

23,19823,411

２．Cash dividends
Cash dividends per shareFirst
quarter（effective date）(yen)
Year ended March 31, 2012
Year ended March 31, 2013
Year ending March 31, 2014
（estimated）

Secondquarter
(yen)

Third
quarterYear-end(yen)

Annual(yen)Totalamount ofdividend（Annual）

Dividend on

Dividend shareholders'payout ratio
equity（Consolidated）(yen) (Millions of yen) (％)

――

6.00
4.00

―
―

6.00
8.00

12.00
12.00

―

6.00

―

6.00

12.00

2,487
2,486

（Consolidated）

(％)

53.7
52.7

2.2
2.1

33.2

３．Forecast of consolidated financial results for fiscal year ending March 31, 2014 （％ 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)

5.9Annual
1,600,000
40.9
58.9
14,70017.7
12,5007,500
36.19* 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, 2013

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

Millions of yen
March 31, 2012

March 31, 2013

Increase(Decrease)

AssetsCurrent assets;
Cash and deposits
Trade notes and accounts receivable
Inventories
Deferred tax asset
OthersAllowance for doubtful receivables
Total current assets23,548
301,035
110,908
1,196
32,227(934)
467,982

23,285
293,752
96,6092,164
20,340(852)
435,301(263)(7,283)(14,299)968(11,887)82(32,681)

18,66030,4837,243
56,387629

17,771
29,582
7,713
55,067
736

(889)
(901)
470
(1,320)107

36,765150
234
22,602(2,347)57,405
114,422582,404

39,317129300
25,135(3,080)61,802
117,607552,908

2,552
(21)
66
2,533
(733)
4,397
3,185
(29,496)

Current 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

186,81090,412
15,000
35
1,666
1,916
23,896
319,735

164,301
113,500
11,00010,0502,971
1,891
18,247321,962(22,509)
23,088(4,000)10,0151,305(25)(5,649)2,227Long-term liabilities;
Bonds payable
Long-term loans payable
Deferred tax liabilities
Deferred tax liabilities by land revaluation
Allowance for retirement benefits
OthersTotal long-term liabilities
Total liabilities

20,050116,738
2,634
2,351
191
4,745
146,712466,448

20,00080,625
2,178
2,384
220
4,862
110,270
432,233(50)(36,113)
(456)
33
29
117
(36,442)(34,215)45,651
4
69,978(1,425)
114,20945,651
4
72,867(1,434)
117,088

――
2,889
(9)
2,879

2,084
353
149
(3,168)(580)
2,326
115,956
582,404

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

583
(233)
(33)
1,407
1,723
116
4,718
(29,496)

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
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 Fiscal Year ended March 31, 2013

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

Millions of yen
Year ended
March 31, 2012

Year ended
March 31, 2013

1,564,250
1,517,904
46,346

1,511,324
1,466,562
44,762(52,926)(51,342)(1,584)31,36914,97632,271
12,491902(2,485)

787
389
725
1,099
3,002

777
564
―774
2,116(10)
175
(725)
(325)
(886)

3,043
―
1,819
4,862
13,116

2,908
1,239
1,587
5,736
8,871

(135)
1,239
(232)
874
(4,245)

Loss on disposal of property and equipment
Total extraordinary loss
Income before income taxes and minority interest

―
1,071
3,598
―
―
4,670
8,445

255
―
1,295
127
375
2,053
6,817

255
(1,071)(2,303)127375(2,617)(1,628)

Income, inhabitant & business tax - current
Income tax expense-deferred
Total extraordinary loss
Income before minority interest

1,893
1,816
3,710
4,735

3,683(1,649)
2,033
4,783

1,790(3,465)(1,677)48

Minority interest in net income
Net income

102
4,632

62
4,720(40)88

Minority interest in net income
Income before minority interest

102
4,735

62
4,783(40)48

Other Comprehensive Income
Net unrealized holding gains on securities
Deferred hedge profit and loss
Land revaluation difference
Foreign currency translation adjustments
Total other comprehensive Income
Comprehensive Income

1,132
246
333
(232)
1,479
6,214

582
(232)
(33)
1,500
1,816
6,600(550)
(478)
(366)
1,732
337
386

Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests

6,111
103

6,444
156

333
53

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
Foreign exchange loss
OthersTotal other expenses
Ordinary income
Extraordinary loss;
Loss on impairment of long-lived assets
Loss on sale of investments securities
Loss on devaluation of investments securitiesLoss on devaluation of investment in limited liability company and partnership－３－Increase(Decrease)

HANWA co.,ltd.

Financial Results for the Fiscal Year ended March 31, 2013
《Consolidated Statements of Changes in Net Assets》(Rounded down to millions of yen)

Millions of yen
Shareholders' equity

Accumulated other comprehensive income

Net
Total
Total
Total
DeferredForeign
Minority
Landvaluation
Common Capital Retained Treasury sharehol unrealized
net
hedge
currency
andrevaluation translation
holdinginterests
profit andstock surplus earnings stockders'assets
difference adjustments translation
gains onloss
adjustments
equity securities

Balance at March 31, 2011

45,651

Increase (decrease) during the term:
Cash dividends paid
Net income
Purchase of treasury stocks
Deposition of treasury stocks
Effect from change in scope of
consolidated subsidiaries
Net increase (decrease) during
the term, except for items undershareholders' equity
Total increase (decrease)
Balance at March 31, 2012

4

67,608(1,423) 111,840(2,487)
4,632(2,487)4,632(1)0(2,487)
4,632
(1)
0225

225

(1)
00225

－
45,651

042,370
69,978(1) 2,369(1,425) 114,209

952

106(183)(2,935)(2,058)677 110,458

1,132

246

333(233)

1,478

1,649

3,128

1,132
2,084

246
353

333
149(233)(3,168)

1,478
(580)

1,649
5,497
2,326 115,956

Millions of yen
Shareholders' equity

Accumulated other comprehensive income

Net
Total
Total
Total
DeferredForeign
MinorityLand
valuation
Common Capital Retained Treasury sharehol unrealized
net
hedge
currency
andholding
revaluation translationinterests
profit andders'stock surplus earnings stock
assetsgains ondifference adjustments translation
loss
adjustments
equity securities

Balance at March 31, 2012

45,651

Increase (decrease) during the term:
Cash dividends paid
Net income
Purchase of treasury stocks
Deposition of treasury stocks
Effect from change in scope of
consolidated subsidiaries
Net increase (decrease) during
the term, except for items undershareholders' equity
Total increase (decrease)
Balance at March 31, 2013

4

69,978(1,425) 114,209(2,072)4,720(2,072)4,720(10)0(2,072)
4,720
(10)
0241

241(10)00241－
45,6510
4

2,889
72,867(9) 2,879(1,434) 117,088

－４－

2,084

353

149

(3,168)

(580)

582

(232)

(33)

1,407

1,723

582
2,667

(232)
120

(33)
116

1,407
(1,761)

1,723
1,143

2,326 115,956

115

1,838

115
4,718
2,442 120,674

HANWA co.,ltd.

Financial Results for the Fiscal Year ended March 31, 2013

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

Millions of yen
Year ended
Year ended
March 31, 2012 March 31, 2013

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 sale of investments securities
Loss on devaluation of investments securities

Increase(Decrease)

Loss on disposal of property and equipment(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

8,445
2,717―(467)(1,176)
3,043
1,071
3,598
―
―
(24,719)(7,522)30,289(816)
14,465
1,155(2,996)(653)
11,970

6,817
3,304
255
471
(1,341)
2,908
―
1,295
127
375
14,38618,093(25,965)
2,354
23,0831,350(2,916)(2,137)
19,380(1,628)
587
255
938
(165)
(135)
(1,071)(2,303)
127375
39,10525,615(56,254)
3,170
8,618
195
80
(1,484)
7,410

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(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

(447)
588
(9,063)151(6,419)
4,346
(631)
(4)
56
(586)
(12,009)(396)
451(4,028)923(2,831)
2,516
(566)
(8)
36(1,204)(5,106)51(137)
5,035
772
3,588
(1,830)
65
(4)
(20)
(618)
6,903

Cash flows from financing activities:Increase(decrease) in short-term loans, netIncrease(decrease) in commercial paper, net
Proceeds from long-term debt
Repayments of long-term debt
Proceeds from issuance of bonds
Redemption of 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(2,515)(3,000)11,750(11,395)
9,955
(316)
(2,489)
(47)
(344)
1,596

(26,360)(4,000)35,500(28,896)
9,955(35)(2,075)(40)(411)(16,363)(23,845)(1,000)23,750(17,501)
―
281
414
7(67)
(17,959)

(172)
1,384
20,586
1,440―
23,411

1,428(661)
23,411420
28
23,1981,600(2,045)2,825(1,020)28(213)

Loss on devaluation of investment in limited liability company and partnership

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

Cash and cash equivalents at end of year－５－HANWA co.,ltd.

Financial Results for the Fiscal Year ended March 31, 2013

《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
and examined 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 Groupconsists of business segments with the business department as the basis. The 5 reportable segments are “steel business,”“metal and alloy business,” “non-ferrous metal business,” “food business,” and “petroleum and chemical business.”
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, steel alloys, and solar cellrelated materials and products
Non-ferrous metals： Aluminum, copper, and zinc (recycling business)
Foods：Sea foods
Petroleum and chemicals： Petroleum products, industrial chemicals, and chemicals
Sales, income/loss, assets, liability, and other amounts by reportable segment(Rounded down to millions of yen)

Millions of yen

Year ended March 31, 2012
Reportable segment
SteelNet sales
Customers
Inter-segment
TotalSegment income(loss)
Segment assets
Other
Depreciation
Interest income
Interest expenses
Property, plant and equipment
and Intangible assets increase

Metals Non-ferrous
Foods& alloys metals

728,845 124,134
16,1852,145
745,031 126,279
9,349
1,286
309,805 57,253

60,475
1,578
62,054851
18,286

Petroleum& chemicals

Subtotal

Other

Total

91,051 456,876 1,461,383 102,867 1,564,250
658
702 21,270 36,950 58,221
91,709 457,578 1,482,653 139,818 1,622,472
1,180
2,671 15,340
1,689 17,030
41,979 72,601 499,927 47,718 547,645

Adjustment― 1,564,250(58,221)―(58,221) 1,564,250(3,913) 13,116
34,758 582,404

1,725
220
1,689

128
82
702

38
1
175

29
0
118

95
121
465

2,018
426
3,151

627
72
481

2,645
498
3,633

72
289
(589)

2,717
787
3,043

10,018

338

27

17

118

10,519588

11,10871

11,179Millions of yen

Year ended March 31, 2013
Reportable segment

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

Consolidated

Subtotal

Other

Total

Consolidated

SteelMetals Non-ferrous
Foods& alloys metals

701,499
16,671
718,170
9,598
289,773

91,8982,867
94,766320
48,92071,516
1,757
73,273686
19,304

2,238
209
1,768

166
101
533

36
0
156

290
157

89
135
405

2,560
447
3,022

676
77
494

3,236
524
3,516

68
252
(608)

3,304
777
2,908

2,389

35

28

44

50

2,549

707

3,256

63

3,320

Other
Depreciation
Interest income
Interest expenses
Property, plant and equipment
and Intangible assets increase

Petroleum& chemicals

83,098 438,111 1,386,122 125,201 1,511,324
702
6,169 28,168 42,292 70,461
83,800 444,280 1,414,291 167,494 1,581,786
747
1,673 13,026
1,222 14,248
30,668 68,870 457,537 52,494 510,031

Adjustment― 1,511,324(70,461)―(70,461) 1,511,324(5,377)
8,871
42,876 552,908

Notes:
1. “Other” comprises businesses that are not included in reportable segments, such as lumber section, machinery section and overseas
sales subsidiaries.

2. Adjustments are as follows:(1) 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.

(2) Adjustments for segment assets include Group assets that have not been distributed to reportable segments. These group assets
consist mainly of 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 to reportable segments.

(5) Adjustments for property, plant and equipment and intangible assets increase are increases in Group assets.
－６－