Financial Results for the Third Quarter ended December 31, 2016
(Consolidated financial results have been prepared in accordance with accounting principles generally accepted in Japan)

February 10, 2017
Company name:

HANWA Co.,Ltd.

Listed stock exchange: Tokyo

Stock exchange code:

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

Representative:
Enquiries:

Hironari Furukawa
Yoichi Nakagawa

The date of issue of audited financial statements:

President
Director, Managing Executive Officer
TEL 81 - 3 - 3544 - 2000
February 14, 2017
The date of payout of dividend:―(Rounded down to millions of yen)

１．Consolidated financial results for the third quarter ended December 31, 2016
(1) Consolidated operating results（％ of change from the same period of previous year）
Net sales
For the third quarter
ended December 31, 2016
ended December 31, 2015

(Millions of yen)(％)

Operating income

Ordinary income(Millions of yen)

(Millions of yen)(％)

Net income attributableto owners of the parent(％)(Millions of yen)

1,098,828(6.3)
16,327
20.8
15,05132.6
1,172,644(10.3)
13,521(1.1)
11,34818.7
Note: Comprehensive income
For the third quarter ended December 31, 2016
12,646 million yen
For the third quarter ended December 31, 2015
5,724 million yen
Net income
per share

For the third quarter
ended December 31, 2016
ended December 31, 2015

(％)

9,718
19.6
8,127
43.7
120.9 ％
(51.9) ％Net income
per share(diluted)

(yen)

(yen)

47.55
39.22

－－

(2) Consolidated financial position
Total assets(Millions of yen)

682,901
599,694

December 31, 2016
March 31, 2016

Note: Shareholders' equity

Shareholders'equity ratio

Net assets(Millions of yen)

163,293
156,139
As of December 31, 2016
As of March 31, 2016

Shareholders' equity
per share(％)

23.8
25.8
162,199 million yen
154,866 million yen(yen)798.22747.40２．Cash dividends
Cash dividends per shareFirst quarter
Second quarter
Third quarter
Year-end
(yen)
(yen)
(yen)
(yen)

（effective date）
Year ended March 31, 2016
Year ending March 31, 2017
（estimated）

－－

8.00
9.00

－－

Annual
(yen)

10.00

18.00

9.00

18.00

３．Forecast of consolidated financial results for fiscal year ending March 31, 2017 （％ of change from previous year）
Net sales

Operating income(Millions of yen) (％)(Millions of yen) (％)

Net income attributableto owners of the parent(Millions of yen) (％) (Millions of yen) (％)

Ordinary income

Net income
per share(yen)Annual
1,500,000(0.8)
21,00015.5
19,00023.2
13,000(49.0)
63.42* 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 Third Quarter ended December 31, 2016《Consolidated Balance Sheets》(Rounded down to millions of yen)

Millions of yen
March 31, 2016

December 31 2016 Increase(Decrease)

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

27,115
260,151
16,141―106,050
42,081(287)
451,253

34,299310,552
28,7772
99,06353,880(321)
526,254

7,183
50,40012,6362(6,987)
11,798(34)
75,00030,144
31,41861,563
1,955

30,11329,04259,1551,950(31)(2,376)(2,407)(5)

58,671
26,735(485)
84,921
148,440
599,694

69,52826,507(494)
95,541
156,647
682,901

10,857(228)(9)
10,6208,207
83,207

Current liabilities;
Trade notes and accounts payable
Short-term loans payable
Current portion of bonds payable
Income taxes payable
Accrued bonuses
Provision for loss on business of subsidiaries and affiliates
OthersTotal current liabilities

149,857
66,734
10,039
326
2,192
512
39,742
269,405

199,876
85,502
21
4,954
1,315
512
59,491
351,673

50,01818,767(10,018)
4,627
(877)
―
19,74882,267Long-term liabilities;
Bonds payable
Long-term loans payable
Retirement benefits liabilities
OthersTotal long-term liabilities
Total liabilities

30,097
129,420
4,075
10,555
174,149
443,555

40,087
111,466
3,946
12,435167,935
519,608

9,989(17,953)
(129)
1,879
(6,214)76,05345,651
4
104,600(1,449)148,80745,651―
111,132(3,718)153,065

―
(4)
6,531
(2,268)
4,258

8,024
(376)
2,966
1,842
(6,397)
6,059
1,272
156,139599,694

12,752147
2,966(917)(5,813)
9,134
1,093
163,293682,901

4,727
523―(2,760)583
3,074(179)7,154
83,207

Fixed assets;
Property and equipment;
LandOthers
Total property and equipment
Intangible assets
Investments 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
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets－２－

HANWA co.,ltd.

Financial Results for the Third Quarter ended December 31, 2016

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

Millions of yen
Third quarter ended Third quarter endedIncrease(Decrease)
December 31, 2015 December 31, 2016Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Other income;Interest income
Dividend income
OthersTotal other income
Other expenses;
Interest expenses
Loss on investment in affiliates
Foreign exchange loss
OthersTotal other expenses
Ordinary income

1,172,644
1,130,306
42,3381,098,828
1,052,513
46,315(73,816)(77,793)
3,977

28,816
13,521

29,987
16,327

1,171
2,805

725
1,008
1,486
3,219

883
689
1,012
2,586

158
(319)
(473)
(633)

2,049
1,260
1,036
1,046
5,393
11,348

1,941
154
702
1,063
3,862
15,051(107)(1,106)(333)
17(1,530)
3,703

Extraordinary income
Gain on sale of property and equipment
Amortization of consolidation negative goodwill
Gain on sales of investment securities
Total extraordinary income
Extraordinary loss;
Loss on devaluation of investments securities
Business loss of affiliates
Total extraordinary loss
Income before income taxes

532
1,101
500
2,133

―
―
522
522

(532)
(1,101)22(1,611)

1,042
―
1,042
12,439135
222
358
15,215(906)
222
(683)
2,775

Income taxes
Net income

4,329
8,110

5,443
9,772

1,114
1,661

Net income attributable to
Net income attributable to owners of the parent
Net income(loss) attributable to minority interests

8,127
(17)

9,718
54

1,590
71

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 affiliates
Total other comprehensive Income
Comprehensive Income(898)(1,685)
(374)
492
80
(2,385)
5,724

4,727
523
(2,616)
583
(344)
2,874
12,646

5,625
2,209(2,241)90(424)
5,259
6,921

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

5,729
(5)

12,792
(146)

7,062
(141)

－３－

HANWA co.,ltd.

Financial Results for the Third Quarter ended December 31, 2016

《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, silicon, manganese and steel alloys
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
Overseas sales subsidiaries： Wholesale trade, general merchandise
Segment information by business category for the third quarter ended December 31, 2014 and 2015, is as follows:(Rounded down to millions of yen)

Third quarter ended December 31, 2015Millions of yen

Reportable segment
Overseas
sales
subsidiarie& chemicals
sOther

Total

Petroleum

Subtotal

71,766 215,511

78,458 1,128,461

44,183 1,172,644

65,584

1,175

SteelMetals Non-ferrous
Foods& alloys metals

Customers

601,016

97,76563,942

Inter-segment

15,408

2,347

858

Total

616,425 100,113

64,800Adjustment

Consolidated

Net sales

Segment income(loss)

10,619

1,513

743

902

3,969

89,072

72,669 219,481 144,043 1,217,534
182

1,511

(123)

14,447

90,24845,358 1,262,892
702

15,150Third quarter ended December 31, 2016

― 1,172,644(90,248)―(90,248) 1,172,644(3,801)

11,348Millions of yen

Reportable segment
Overseas
sales
subsidiarie& chemicals
s

Other

TotalPetroleum

Subtotal

70,087 189,666

77,743 1,044,088

54,739 1,098,828

46,770

1,265

Steel

Metals Non-ferrous
Foods& alloys metals

557,697

92,96755,925

9,066

2,375

1,129

566,763

95,342

57,055

13,080(855)

184

Adjustment

Consolidated

Net sales
Customers
Inter-segment
TotalSegment income(loss)

292

5,070

64,70465,970― 1,098,828(65,970)―

70,379 194,737 124,513 1,108,793

56,005 1,164,798(65,970) 1,098,828

2,326

1,444(2,204)

1,855(779)

15,812

17,256

15,051

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

3. Segment income or loss is adjusted between ordinary income on the consolidated statements of income and comprehensive
income.

－４－