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

May 13, 2016
Company name:

HANWA Co.,Ltd.

Listed stock exchange:
Stock exchange code:

Tokyo
8078

Representative:
Enquiries:

Hironari Furukawa
Yoichi Nakagawa(URL http://www.hanwa.co.jp)
President
Director, Managing Executive Officer
TEL 81 - 3 - 3544 - 2000

The date of Shareholders' Meeting:June 29, 2016
The date of issue of audited financial statements: June 30, 2016

The date of payout of dividend: June 30, 2016
(Rounded down to millions of yen)

１．Consolidated financial results for the fiscal year ended March 31, 2016
(1) Consolidated operating results
Net sales(Millions of yen)(％)

1,511,800
1,737,397
Note: Comprehensive income
Year ended March 31, 2016
Year ended March 31, 2015（％ of change from previous year）

Operating income

Ordinary income(Millions of yen)

(Millions of yen)

(％)

(％)

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

(13.0)(4.9)
15,424
8.1
25,469 180.3
18,178
19,107
17.6
14,264
9,086
15.1
3.3
(3.0)
Year ended March 31, 2016
16,778 million yen-13.7%
32.8%
Year ended March 31, 2015
19,450 million yen
Ratio of net income to Ratio of ordinary Ratio of operating
Net income
Net income
income to net sales
per shareper share(diluted) shareholders' equity
income to total assets

(yen)

(yen)

122.92－43.85－
Note: Equity in earnings of unconsolidated subsidiaries and affiliates
Year ended March 31, 2016
Year ended March 31, 2015

(2) Consolidated financial position
Total assets

Note: Shareholders' equity(3) Consolidated cash flows situation(％)

Shareholders'equity ratio(Millions of yen)

156,139
142,749
As of March 31, 2016
As of March 31, 2015(％)

Cash flows from
Investing activities

Cash flows from
Financing activities

53,098
1,790(10,446)(13,692)(41,751)
19,339Year ended March 31, 2016
Year ended March 31, 2015

２．Cash dividends(Millions of yen)

Year ended March 31, 2015
Year ended March 31, 2016
Year ending March 31, 2017
（estimated）

First
quarter

Secondquarter

Third
quarterYear-end

AnnualTotalamount ofdividend（Annual）

―
―

7.50
8.00

―
―

7.50
10.00

15.00
18.00

3,108
3,729

―

9.00

―

9.00

18.00

(yen)

(yen)

(yen)

Shareholders' equity
per share
(yen)

(yen)

747.40682.46

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

Cash dividends per share（effective date）

1.2
1.1(1,304) million yen
207 million yen

25.8
21.7
154,866 million yen
141,415 million yen

Cash flows fromOperating activities(Millions of yen)

(％)

17.2
2.5
6.9
2.3
Year ended March 31, 2016
Year ended March 31, 2015

Net assets(Millions of yen)599,694
651,456

March 31, 2016
March 31, 2015(％)

25,80424,515

Dividend on

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

34.2
14.6

（Consolidated）

(％)

2.4
2.5

28.7

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) (％)

Ordinary income

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

Net income
per share(yen)

1,600,000
21,00015.5
19,00023.2(49.0)
62.74
5.8
Annual
13,000* 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, 2016

《Consolidated Balance Sheets》(Rounded down to millions of yen)March 31, 2015

AssetsCurrent assets;

Cash and deposits
Trade notes and accounts receivable
Securities
Inventories
Deferred tax asset
OthersAllowance for doubtful receivables
Total current assets

Fixed assets;
Property and equipment;

Buildings and structures
Machinery,equipment & delivery equipment
Land
OthersTotal property and equipment

Intangible assets
Investments and other assets;

Investment securities
Long-term loans receivable
Retirement benefits assets
Deferred tax asset
OthersAllowance for doubtful receivables
Total investments and other assets
Total fixed assets

Total assets

Millions of yen

March 31, 2016

Increase(Decrease)24,542
321,6422,610
133,055
1,116
28,326(915)
510,377

27,115276,293―
106,050
2,085
39,996(287)
451,2532,573(45,349)(2,610)(27,005)969
11,670628(59,124)

18,2306,240
31,676
4,799
60,946
2,019
58,293
3,003
1,011
106
15,993(295)
78,112141,078
651,456

20,3196,585
30,144
4,513
61,563
1,955
58,671
12,383―244
14,107(485)
84,921
148,440
599,694

2,089
345(1,532)
(286)
617
(64)
378
9,380
(1,011)138(1,886)
(190)
6,809
7,362
(51,762)

180,155
82,15527,00010,0001,231
22,6202,051―
16,982
342,196

149,857
66,734―
10,039326
31,054
2,192
512
8,688
269,405(30,298)(15,421)(27,000)
39
(905)
8,434
141
512
(8,294)(72,791)

30,000122,352
6,218
1,921
412
5,604
166,510508,706

30,097
129,420
3,359
1,634
4,075
5,561
174,149
443,555

97
7,068(2,859)
(287)
3,663
(43)
7,639
(65,151)

45,651
4
82,110(1,445)
126,320
11,621
1,526
3,250
2,356
(3,660)15,094
1,334
142,749
651,456

45,651
4
104,600(1,449)148,807――
22,490(4)
22,487(3,597)(1,902)(284)(514)(2,737)(9,035)(62)
13,390(51,762)

Liabilities;

Current liabilities;

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

Long-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

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－

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

HANWA co.,ltd.
Financial Results for the Fiscal Year ended March 31, 2016

《Consolidated Statements of Income and Comprehensive Income》

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Other income;Interest income
Dividend income
Revenue from investment in affiliates
Reversal of allowance for doubtful account
OthersTotal other income
Other expenses;
Interest expenses
Loss on investment in affiliates
Foreign exchange loss
Guarantee commission
OthersTotal other expenses
Ordinary income
Extraordinary income;Gain on sales of long-lived assets
Amortization of consolidation negative goodwill
Gain on sales of investment securities
Total extraordinary income
Extraordinary loss;
Loss on sale of property and equipment
Loss on disposal of property and equipment
Loss on devaluation of investments securities
Loss on devaluation of investment in capitalBusiness loss of affiliates
Loss on revision of retirement benefit plan
Total extraordinary loss
Income before income taxes
Income, inhabitant & business tax - current
Income tax expense-deferred
Total income taxes
Net income
Net income attributable to
Net income attributable to owners of the parent
Net income(loss) attributable to minority interests
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
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 attributable to minority interests－３－(Rounded down to millions of yen)

Millions of yen

Year ended
March 31, 2015

Year ended
March 31, 2016

Increase(Decrease)

1,737,397
1,681,667
55,72936,622
19,107

1,511,800
1,455,240
56,55938,381
18,178(225,597)(226,427)
830
1,759
(929)

864
531
207
―
794
2,398

1,038
1,041
―
591
1,102
3,773

174
510
(207)
591
308
1,375

2,868
―
2,882
680
810
7,241
14,264

2,684
1,304
1,039
713
785
6,526
15,424(184)
1,304(1,843)
33
(25)
(715)
1,160

128
―
―
128

13,074
1,101
742
14,91812,946
1,101
742
14,790

―
213
477
227
456
―
1,374
13,018
3,809
67
3,876
9,141

261
―
2,384
888
―
64
3,599
26,743
1,120
144
1,264
25,479

261
(213)
1,907
661
(456)
64
2,225
13,725(2,689)77(2,612)
16,3389,086
55

25,469916,383
(46)

4,137
1,887
184
2,175
1,924
―
10,30819,450(3,597)(1,902)102(675)(2,737)109(8,700)16,778(7,734)(3,789)(82)(2,850)(4,661)
109(19,008)(2,672)

19,271
178

16,821(42)(2,450)(220)

HANWA co.,ltd.

Financial Results for the Fiscal Year ended March 31, 2016
《Consolidated Statements of Changes in Net Assets》(Rounded down to millions of yen)

Millions of yen

Accumulated other comprehensive income

Shareholders' equity

Net
Total
Total
Total
DeferredForeign
Remeasure
Commo Capital Retaine Treasury shareholLand
unrealized
valuation Minority
net
hedge
currency
ments ofandholding
revaluation translationinterestsnddefinedders' gains on profit and difference adjustments benefit
assetstranslationplans
stock surplus earnings stock equity
loss
adjustments
securities

45,651
Balance at March 31, 2014
Cumulative effects of changes inaccounting policies
Restated balance
45,651
Increase (decrease) during the term:
Cash dividends paid
Change of scope of consolidated
subsidiaries
Reversal of land revaluationdifference
Net income attributable toowners of the parent
Purchase of treasury stocks
Net increase (decrease) during
the term, except for items undershareholders' equity－
Total increase (decrease)45,651
Balance at March 31, 2015

4 76,520
1,924
4 78,444(1,442) 120,733
1,924(1,442) 122,657(2,797)411(2,797)411(2,797)411(3,033)(3,033)(3,033)

9,086
(3)

9,086
(3)

9,086
(3)

－ 3,666
4 82,110

7,484

(360)

32

304

(5,584)

1,875

7,484

(360)

32

304

(5,584)

1,875

2,752 125,361
1,924
2,752 127,285

4,137

1,887

3,218

2,052

1,924 13,219(1,417) 11,801(3) 3,662 4,137(1,445) 126,320 11,621

1,887
1,526

3,218
3,250

2,052
2,356

1,924 13,219(3,660) 15,094(1,417) 15,464
1,334 142,749

Millions of yen

Shareholders' equity

Accumulated other comprehensive income

Net
Total
Total
Total
DeferredForeign
Remeasure
Commo Capital Retaine Treasury sharehol
unrealizedLand
valuation Minority
net
hedge
currency
ments ofandholding
revaluation translationinterests assetsnddefinedprofit andders' gains
ondifference adjustments benefit plans translation
stock surplus earnings stock equity
loss
adjustments
securities

45,651
Balance at March 31, 2015
Cumulative effects of changes inaccounting policies
Restated balance
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
Net increase (decrease) during
the term, except for items undershareholders' equity－
Total increase (decrease)45,651
Balance at March 31, 2016

4 82,110－
4 82,110(1,445) 126,320 11,621－(1,445) 126,320 11,621

1,526

3,250

2,356

(3,660) 15,094

1,526

3,250

2,356

(3,660) 15,094

1,334 142,749－
1,334 142,749(3,211)
277
(432)
386

(3,211)
277
(432)
386

(3,211)
277
(432)
386

25,46925,469(3)(3)

25,469(3)－ 22,490
4 104,600(3) 22,486(1,449) 148,807－４－(3,596) (1,902)(284)(513) (2,737) (9,035)(62) (9,097)(3,596) (1,902)
8,024
(376)

(284)
2,966

(513) (2,737) (9,035)
1,842 (6,397) 6,059(62) 13,389
1,272 156,139

HANWA co.,ltd.

Financial Results for the Fiscal Year ended March 31, 2016

《Consolidated Statements of Cash Flows》(Rounded down to millions of yen)
Year ended
March
31,2015

Cash flows from operating activities:
Income before income taxes

13,018Depreciation and amortization

3,891

Amortization of goodwill

187

Increase(decrease) in allowance for doubtful receivables(1,049)Interest and dividend income(1,396)

Interest expense

2,868

Revenue from investment in affiliated companies (gain)(207)

Gain on sales of long-lived assets(128)

Amortization of consolidation negative goodwill―

Gain on sales of investment securities―

Loss on sale of property and equipment―

Loss on disposal of property and equipment

213

Loss on devaluation of investments securities

477

Loss on devaluation of investment in capital

227

Business loss of affiliates

456

Loss on revision of retirement benefit plan―

(Increase)decrease in trade receivables

1,824(Increase)decrease in inventories(11,490)

Increase(decrease) in trade notes and accounts payable(5,588)

Increase(decrease) in deposits received(65)

Increase(decrease) in advance received

13,261

Increase(decrease) in advanced payment(7,081)

Increase(decrease) in retirement benefits(5,108)Other, net

4,785

Sub total

9,094Interest and dividends received

1,415Interest paid

(2,857)

Income taxes paid

(5,861)

Net cash provided by (used in) operating activities

1,790

Cash flows from investing activities:
Payment for time deposits(30)

Proceeds from refund of time deposits

90

Proceeds from redemption of securities

2,000

Payment for purchase of property and equipment(3,807)

Proceeds from sale of property and equipment

1,646

Payment for purchase of investment securities(12,774)

Proceeds from sale of investment securities

3,068

Net increase(decrease) from purchase of consolidated subsidiaries(Increase)decrease in short - term loans receivable, net
Increase in long - term loans receivable―(411)(2,897)

Collection of long-term loans receivable

25

Other, net(602)

Net cash used in investing activities(13,692)

Cash flows from financing activities:
Increase(decrease) in short-term loans, net(7,876)

Increase(decrease) in commercial paper, net

22,000

Proceeds from long-term debt

35,065

Repayments of long-term debt

(26,649)

Proceeds from issuance of bonds

9,950

Redemption of issuance of bonds(10,000)

Payment for cash dividends(2,797)

Cash dividends paid to minority interest in consolidated subsidiaries
Other, net

(46)
(306)

Net cash provided by (used in) financing activities

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
Cash and cash equivalents at end of year
－５－

19,339623
8,061
15,919533
24,515

Millions of yen
Year ended
March
31,2016

26,743
4,343
231
(633)
(2,079)2,684
1,304(13,074)(1,101)
(742)
261
―
2,384
888
―
64
49,176
31,640(38,116)(6,637)8,434(8,407)
4,603(3,655)58,3122,024(2,702)(4,535)53,098(1,547)700―(6,359)20,682(13,392)
2,106(2,165)(430)(10,324)
23
259(10,446)(14,065)(27,000)
16,075(13,103)
9,950(10,057)(3,210)(34)(307)(41,751)(495)
405
24,515884
25,804

Increase(Decrease)

13,725
452
44
416
(683)
(184)
1,511
(12,946)(1,101)
(742)
261
(213)
1,907
661
(456)
64
47,352
43,130(32,528)(6,572)(4,827)(1,326)
9,711(8,440)49,218
609
155
1,326
51,308(1,517)610(2,000)(2,552)
19,036(618)(962)(2,165)(19)(7,427)
(2)
861
3,246

(6,189)(49,000)(18,990)
13,546
―
(57)
(413)
12
(1)
(61,090)(1,118)(7,656)
8,596
351
1,289

HANWA co.,ltd.
Financial Results for the Fiscal Year ended March 31, 2016

《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 5 reportable segments are “steel business,” “metal and alloy business,” “nonferrous 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
Overseas sales subsidiaries： Wholesale trade, general merchandise

Sales, income/loss, assets, liability, and other amounts by reportable segment
Year ended March 31, 2014

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

Reportable segment
Metals Non-ferrous Foods Petroleum Overseas& chemicals sales& alloys metals

subsidiaries

Millions of yen

Subtotal

Other

Total

Adjustment Consoli-

dated

857,396 125,767 81,978 86,922 422,449 101,276 1,675,791 61,606 1,737,397― 1,737,397
21,319 5,403 1,386
723 7,470 78,287 114,590 1,220 115,810 (115,810)―
878,715 131,171 83,365 87,645 429,919 179,564 1,790,381 62,826 1,853,208 (115,810) 1,737,397
14,735343 1,146
583 2,481(59) 19,230
743 19,973 (5,709) 14,264
354,475 72,533 23,269 34,127 48,405 38,115 570,927 23,594 594,521 56,935 651,456
3,024
154
198
2,202
207
2,008
3,140

Year ended March 31, 2015

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(Rounded down to millions of yen)

105
33
170
651
―
―
78

37
―
―
159
―
―
33

16
―
0
258
―
―
39

65
―
137
375
―
―
64

51
―
91
372
―
―
115

Reportable segment
Metals Non-ferrous Foods Petroleum Overseas& chemicals sales& alloys metals

subsidiaries

3,302
187
597
4,019
207
2,008
3,472

542
―
15
162
―
―
354

3,844
187
612
4,181
207
2,008
3,827

46
―
251
(1,313)
―
―
106

3,891
187
864
2,868
207
2,008
3,933

Millions of yen

Subtotal

Other

Total

Adjustment Consoli-

dated

778,737 127,759 80,894 89,541 271,602 97,468 1,446,004 65,795 1,511,800― 1,511,800
19,953 3,428 1,187 1,129 4,848 80,148 110,696 1,459 112,155 (112,155)―
798,691 131,188 82,081 90,671 276,450 177,617 1,556,701 67,254 1,623,956 (112,155) 1,511,800
14,829 2,217
848
75 1,974(708) 19,237 1,375 20,613 (5,188) 15,424
332,394 64,752 17,527 33,775 38,054 24,600 511,105 32,102 543,207 56,486 599,694
3,247
154
204
2,213
(1,031)
2,894
5,231

107
33
525
765
―
―
140

280
44
0
212
―
―
133

30
―
0
223
―
―
202

68
―
52
283
―
―
171

62 3,797
―
231
70
853
264 3,962(273) (1,304)
131 3,025
48 5,928

456
―
13
125
―
―
344

4,253
89 4,343
231
―
231
866
172 1,038
4,087 (1,403) 2,684(1,304)― (1,304)
3,025― 3,025
6,272
709 6,982

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.
－６－