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

August 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
August 14, 2013
(Rounded down to millions of yen)

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

(Millions of yen)(％)

Operating income

Ordinary income(Millions of yen)

(Millions of yen)(％)

384,486
3.0
3,705
16.3
373,322(2.7)
3,185(30.9)
Note: Comprehensive income
For the first quarter ended June 30, 2013
For the first quarter ended June 30, 2012
Net income
per share

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

Net income(％)(Millions of yen)

(％)

2,019
(135)
-%
-%

-

3,541
22.5
2,891
(35.8)
4,400 million yen(221) million yen

Net income
per share(diluted)

(yen)

(yen)

9.75
(0.65)－－(2) Consolidated financial position
Total assets(Millions of yen)

571,384
552,908

June 30, 2013
March 31, 2013

Note: Shareholders' equity

Shareholders'equity ratio

Net assets(Millions of yen)

121,939
120,674
As of June 30, 2013
As of March 31, 2013

Shareholders' equity
per share(％)

20.9
21.4
119,449 million yen
118,232 million yen(yen)

576.40570.50２．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）－－

Annual
(yen)

4.00

－

8.00

12.00

6.00

－

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 income

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

Net income
per share(yen)Annual
1,600,000
5.9
14,70017.7
12,500
40.9
7,500
58.9
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 First Quarter ended June 30, 2013

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

Millions of yen
March 31, 2013

June 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

28,218298,340
100,325
24,607(866)
450,625

4,933
4,588
3,716
2,102
(14)
15,32429,582
25,48555,067736

30,241
28,74058,981
1,356

659
3,255
3,914
620

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

39,61524,246(3,440)60,420120,759
571,384298(1,319)(360)(1,382)
3,152
18,476

Current liabilities;
Trade notes and accounts payable
Short-term loans payableCommercial 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

165,951
116,914
11,00010,060309
1,034
22,444
327,713

1,650
3,414
―
10(2,662)
(857)
4,197
5,751

Long-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

30,00081,305245
10,180121,731449,445

10,000680
25
755
11,461
17,21245,651
4
72,867(1,434)
117,088

45,651
4
71,795(1,437)116,013――(1,072)(3)(1,075)

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

3,565
329
116
(575)
3,436
2,489
121,939
571,384

898
209
―
1,186
2,293
47
1,265
18,476

Fixed assets;
Property and equipment;
Land
OthersTotal property and equipment
Intangible assets
Investments and other assets;
Investment securities
OthersAllowance for doubtful receivables
Total investments and other assets
Total fixed assetsTotal 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 First Quarter ended June 30, 2013

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

Millions of yen

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income

First quarter
ended
June 30, 2012

First quarter
ended
June 30, 2013

Increase(Decrease)373,322362,253
11,068384,486
371,962
12,523

11,164
9,709
1,455

7,883
3,185

8,817
3,705

934
520

Other income;Interest income
Dividend income
Foreign exchange gain
OthersTotal other income
Other expenses;
Interest expenses
Foreign exchange loss
OthersTotal other expenses
Ordinary income

201
256―323781

185256171
264877(16)
―
171
(59)
96

757
5
312
1,075
2,891

731
―
310
1,042
3,541

(26)
(5)
(2)
(33)
650

Extraordinary loss;
Loss on devaluation of investments securities
Total extraordinary loss
Income before income taxes and minority interest

3,174
3,174
(283)

―
―
3,541

(3,174)(3,174)
3,824

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

(139)
(143)
(8)
(135)

1,512
2,029
9
2,019

1,651
2,172
17
2,154

Minority interest in net income
Income before minority interest

(8)
(143)

9
2,029

17
2,172

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

(154)
(116)
193
(77)
(221)

900
208
1,261
2,370
4,400

1,054
324
1,068
2,447
4,621

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

(253)
32

4,312
87

4,565
55－３－HANWA co., ltd.

Financial Results for the First Quarter ended June 30, 2013

《Segment information》
Business segment informationThe 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 cementSegment information by business category for the first quarter ended June 30, 2012 and 2013, is as follows:(Rounded down to millions of yen)First quarter ended June 30, 2012

Millions of yen

Reportable segment

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

Subtotal

SteelMetals Non-ferrous& alloys metals

Foods

174,151
4,001
178,152
1,764

27,891556
28,448983

22,145 100,835 341,023
115
1,569
6,706
22,260 102,404 347,730
157
570
3,966

15,999464
16,463490

Petroleum& chemicals

OtherTotal

32,298 373,322
11,357 18,063
43,655 391,386
698
4,665

First quarter ended June 30, 2013Adjustment― 373,322(18,063)―(18,063) 373,322(1,773)
2,891

Millions of yen

Reportable segment

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

Consolidated

Subtotal

Steel

Metals Non-ferrous& alloys metals

Foods

178,571
5,018
183,589
2,751

21,6091,131
22,740542

20,459 107,344 347,311
213
1,680
8,522
20,673 109,025 355,833
511
522
4,806

19,325478
19,804
478

Petroleum& chemicals

OtherTotal

37,174 384,486
13,255 21,778
50,430 406,264
241
5,407

Adjustment

Consolidated― 384,486(21,778)―(21,778) 384,486(1,505)
3,541

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.

－４－