Financial Results for the Fiscal Year ended March 31, 2017
(Consolidated financial results have been prepared in accordance with accounting principles generally accepted in Japan)

May 12, 2017
Company name:

HANWA Co.,Ltd.

Listed stock exchange:
Stock exchange code:

Tokyo8078

Representative:
Enquiries:

Hironari Furukawa
Yoichi Nakagawa(URL http://www.hanwa.co.jp)

The date of Shareholders' Meeting:
The date of issue of audited financial statements:

President
Director, Senior Managing Executive Officer
TEL 81 - 3 - 3544 - 2000
June 29, 2017
June 30, 2017

The date of payout of dividend: June 30, 2017
(Rounded down to millions of yen)

１．Consolidated financial results for the fiscal year ended March 31, 2017
(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 attributableto owners of the parent(％)(Millions of yen)(％)

1,514,037
1,511,800
Note: Comprehensive income

0.1
23,42628.9
22,90748.5
16,363(35.8)(13.0)
18,178(4.9)
15,424
8.1
25,469180.3
Year ended March 31, 2017
20,991 million yen
25.1%
Year ended March 31, 2016
16,778 million yen-13.7%Net income
Net income
Ratio of net income toRatio of ordinary
Ratio of operating
per shareper share(diluted) shareholders' equity income to total assets income to net sales

Year ended March 31, 2017
Year ended March 31, 2016

(yen)

(yen)

(％)

80.18
－
122.92－Note: Equity in earnings of unconsolidated subsidiaries and affiliates
Year ended March 31, 2017
Year ended March 31, 2016

(％)

(％)

10.1
3.5
17.2
2.5
Year ended March 31, 2017
Year ended March 31, 2016

1.5
1.2(88) million yen(1,304) million yen(2) Consolidated financial position
Total assets(Millions of yen)694,232
599,694

March 31, 2017
March 31, 2016

Note: Shareholders' equity

Shareholders'equity ratio

Net assets(Millions of yen)

171,637
156,139
As of March 31, 2017
As of March 31, 2016

Shareholders' equity
per share(％)

(yen)

24.5
25.8
170,422 million yen
154,866 million yen

838.70747.40(3) Consolidated cash flows situation
Cash flows fromOperating activities
Year ended March 31, 2017
Year ended March 31, 2016

Cash flows from
Investing activities

Cash flows from
Financing activities(Millions of yen)

(Millions of yen)

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

3,959
53,098(18,427)(10,446)

15,447(41,751)

27,20625,804

２．Cash dividends
Cash dividends per shareFirstquarter（effective date）(yen)
Year ended March 31, 2016
Year ended March 31, 2017
Year ending March 31, 2018
（estimated）

Secondquarter(yen)

Thirdquarter

Year-end(yen)Annual(yen)Totalamount ofdividend（Annual）

Dividend on

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

―
―

8.00
9.00

―
―

10.00
10.00

18.00
19.00

―

10.00

―

10.00

20.00

3,729
3,860

（Consolidated）

(％)

14.6
23.7

2.5
2.4

25.5

３．Forecast of consolidated financial results for fiscal year ending March 31, 2018 （％ 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)Annual1,700,000
12.3
25,5008.9
24,0004.8
16,000(2.2)
78.40* 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, 2017

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

Millions of yen
March 31, 2016

March 31, 2017

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

27,115
260,151
16,141―106,050
2,085
39,996(287)
451,253

28,465
307,853
30,742486
111,039
1,919
57,599(334)
537,773

20,31930,144
11,09861,563
1,955

18,596
29,640
11,25559,492
2,034

58,671
12,383244
14,107(485)
84,921
148,440
599,694

72,524
10,842283
11,787(504)
94,932
156,458
694,232

Current liabilities;
Trade notes and accounts payable
Short-term loans payable
Commercial paper
Current portion of bonds payable
Income taxes payable
Accrued bonuses
Provision for product warranties
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

191,989
107,262
5,000
21
6,752
2,306
146
512
45,068359,058

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

30,097129,420
3,359
1,634
4,075
5,561
174,149
443,555

40,076106,232
5,366
1,634
4,518
5,709
163,536
522,595

45,651
4
104,600(1,449)148,80745,651―
117,778(3,720)159,709

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

12,580
142
2,966
1,062
(6,037)
10,713
1,214
171,637
694,232

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
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 Fiscal Year ended March 31, 2017

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

Millions of yen
Year ended
March 31, 2016
Net sales
Cost of sales
Gross profit

Year ended
March 31, 2017

1,511,800
1,455,240
56,5591,514,037
1,449,522
64,51438,381
18,17841,08823,426

1,038
1,041
1,693
3,773

1,238
1,446
1,207
3,891

2,684
1,304
1,039
713
785
6,526
15,424

2,553
88284
734
750
4,411
22,907

13,074
1,101742
14,918

876
―
674
1,551

261
2,384
888
―
64
3,599
26,743

227
814
―
253
―
1,295
23,163

Income, inhabitant & business tax - current
Income tax expense-deferred
Total income taxes
Net income

1,120
144
1,264
25,479

7,354
(625)
6,728
16,434

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

25,469916,36371(3,597)(1,902)102(675)(2,737)

4,555
518
―
(723)
360

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
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 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

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

109

(154)

(8,700)16,778

4,557
20,991

Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests16,821(42)

21,017(26)－３－

HANWA co.,ltd.

Financial Results for the Fiscal Year ended March 31, 2017
《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
Remeasurem
MinorityLand
valuation
Common Capital Retained Treasury sharehol unrealized hedge
netcurrency
ents ofandholding
revaluation translationinterests
definedprofit andstock
surplus earnings stockders'assets
gains ondifference adjustments benefit plans translation
loss
adjustments
equity securities

Balance at March 31, 2015

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 to ownersof the parent
Purchase of treasury stocks
Capital increase from purchase ofstock of consolidated subsidiaries
Capital increase from sales ofstock of consolidated subsidiaries
Others
Net increase (decrease) during
the term, except for items undershareholders' equity
Total increase (decrease)
Balance at March 31, 2016

4

82,110(1,445) 126,320(3,211)(3,211)(3,211)

277

277

277

(432)

(432)

(432)

386

386

386

25,46925,46925,469(3)(3)－－－－－－－－－(3)－－
45,651－ 22,490
4 104,600(3) 22,486(1,449) 148,807

11,621

1,526

3,250

2,356

(3,660) 15,094(3,596)(1,902)

(284)

(513)

(2,737)(9,035)(3,596)
8,024(1,902)
(376)

(284)
2,966

(513)
1,842

(2,737)(6,397)(9,035)
6,059

1,334 142,749(62)(9,097)(62) 13,389
1,272 156,139

Millions of yen
Shareholders' equity

Accumulated other comprehensive income

Net
Total
Total
Total
DeferredForeign
Remeasurem
MinorityLand
valuation
Common Capital Retained Treasury sharehol unrealized hedge
netcurrency
ents ofandholding
revaluation translationinterests
definedprofit andstock
surplus earnings stockders'
assetstranslation
gains ondifference adjustments benefit plansloss
adjustments
equity securities

Balance at March 31, 2016

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 to ownersof the parent
Purchase of treasury stocks
Capital increase from purchase ofstock of consolidated subsidiaries
Capital increase from sales ofstock of consolidated subsidiaries
Others
Net increase (decrease) during
the term, except for items undershareholders' equity
Total increase (decrease)
Balance at March 31, 2017

4 104,600(1,449) 148,807(3,900)(3,900)(3,900)

219

219

219

700

700

700

－－－

16,363

16,363

16,363(2,270)(2,270)

(200)

(205)

(205)

(0)

(0)

(0)

(4)

(4)

(4)

(2,270)(4)－45,651(4) 13,177－ 117,778(2,270) 10,902(3,720) 159,709

－４－

8,024

(376)

2,966

1,842

4,555

518

－

(780)

4,555
12,580

518
142

－
2,966

(780)
1,062

(6,397)

360

6,059

4,654

360
4,654
(6,037) 10,713

1,272 156,139

(58)

4,596

(58) 15,498
1,214 171,637

HANWA co.,ltd.

Financial Results for the Fiscal Year ended March 31, 2017

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

Millions of yen
Year ended
March 31,2016

Year ended
March 31,2017

Cash flows from operating activities:
Income before income taxes
Depreciation and amortization
Amortization of goodwill
Increase(decrease) in allowance for doubtful receivables
Interest and dividend income
Interest expense
Revenue from investment in affiliated companies (gain)
Gain on sales of long-lived assets
Amortization of consolidation negative goodwill
Gain on sales of investment securities
Loss on sale 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(Increase)decrease in trade receivables(Increase)decrease in inventories
Increase(decrease) in trade notes and accounts payable
Increase(decrease) in retirement benefits
Other, net
Sub totalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities

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)
4,603(10,266)
58,3122,024(2,702)(4,535)53,09823,1633,971
217
67(2,684)
2,553
88(876)―(674)
227
814
―
253
―
(60,931)(3,991)
39,538
959
44
2,739
2,766
(2,562)
1,015
3,959

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
Net increase(decrease) from purchase of consolidated subsidiaries(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(1,547)700(6,359)20,682(13,392)
2,106(2,165)(430)(10,324)
23
259(10,446)(1,245)
1,261(3,656)
1,453(2,883)
1,161―(14,829)
(808)
28
1,090
(18,427)(14,065)(27,000)
16,075(13,103)
9,950(10,057)(3)(3,210)(34)

12,3435,000
15,340(10,460)
9,950(10,039)(2,270)(3,899)(29)―(220)(303)(41,751)(267)
15,447(495)405
24,515884
25,804(370)609
25,804791
27,206

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
Redemption of issuance of bonds
Purchase of treasury stock
Payment for cash dividends
Cash dividends paid to minority interest in consolidated subsidiaries
Purchase of investments in subsidiaries resulting in no change in scope ofconsolidation
Other, netNet 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－

HANWA co.,ltd.

Financial Results for the Fiscal Year ended March 31, 2017

《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 6 reportable segments are “steel business,” “metal and alloy business”, “nonferrous metal business”, “food business”, “petroleum and chemical business”, and “Overseas sales subsidiaries”.
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(Rounded down to millions of yen)

Year ended March 31, 2016

Millions of yen

Reportable segment
SteelNet sales
Customers
Inter-segment
TotalSegment 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

Metals Non-ferrous& alloys metals

778,737 127,759
19,953
3,428
798,691 131,188
14,8292,217
332,394 64,752

80,894
1,187
82,081
848
17,527

Foods

Overseassales& chemicals
subsidiaries

Petroleum

Subtotal

89,541 271,602 97,468 1,446,004
1,129
4,848 80,148 110,696
90,671 276,450 177,617 1,556,70175
1,974(708) 19,237
33,775 38,054 24,600 511,105

Other

Total

Adjustment

65,795 1,511,800― 1,511,800
1,459 112,155 (112,155)―
67,254 1,623,956 (112,155) 1,511,800
1,375 20,613(5,188) 15,424
32,102 543,207 56,486 599,694

3,247154
204
2,213

107
33
525765280
440
212

30―
0223

68―
52
283

62―
70
264

3,797
231
853
3,962

456
―
13
125

4,253
231
866
4,087

89
―
172
(1,403)

4,343
231
1,038
2,684

(1,031)

―

―

―

―

(273)

(1,304)―(1,304)―(1,304)

2,894

―

―

―

―

131

3,025

―

3,025

―

3,025

5,231

140

133

202

171

48

5,928

344

6,272

709

6,982

Year ended March 31, 2017

Millions of yen

Reportable segment
Steel
Net sales
Customers
Inter-segment
TotalSegment 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

Consolidated

Metals Non-ferrous& alloys metals

775,725 131,413
11,167
3,210
786,892 134,624
18,082
1,413
371,789 114,436

77,674
1,532
79,206
1,084
21,772

Foods

Overseassales& chemicals
subsidiaries

Petroleum

Subtotal

88,671 257,165 111,993 1,442,643
339
7,299 62,287 85,837
89,011 264,465 174,280 1,528,481
2,872
2,461
196 26,111
34,074 41,128 32,305 615,506

Other

Total

71,394 1,514,037
1,660 87,498
73,054 1,601,535
1,526 27,638
27,394 642,900

Adjustment

Consolidated― 1,514,037(87,498)―(87,498) 1,514,037(4,731) 22,907
51,332 694,232

2,970
140
190
2,008

121
33
790
1,171

267
44
0
180

41
―
32
324

42
―
50
276

50
―
73
298

3,494
217
1,138
4,260

362
―
10
167

3,857
217
1,148
4,427

114
―
90
(1,874)

3,971
217
1,238
2,553

(66)

―

―

―

―

(120)

(186)

97(88)

―

(88)

2,671

―

―

―

―

48

2,719

778

3,498

―

3,498

3,479

69310

583684

4,038

345

4,383

51

4,435

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－