Financial Results for the First Quarter ended June 30, 2015
(Consolidated financial results have been prepared in accordance with accounting principles generally accepted in Japan)

August 7, 2015
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, Senior Managing Executive Officer
TEL 81 - 3 - 3544 - 2000
August 14, 2015
(Rounded down to millions of yen)

１．Consolidated financial results for the first quarter ended June 30, 2015
(1) Consolidated operating results（％ of change from the same period of previous year）
Net sales
For the first quarter
ended June 30, 2015
ended June 30, 2014

(Millions of yen)(％)

Operating income

Ordinary income(Millions of yen)

(Millions of yen)(％)

398,045
(6.0)
4,759
17.9
423,335
10.1
4,036
8.9
Note: Comprehensive income
For the first quarter ended June 30, 2015
For the first quarter ended June 30, 2014
Net incomeper share

For the first quarter
ended June 30, 2015
ended June 30, 2014

Profit attributable toowners of the Company(％)(Millions of yen)

(％)

2,948
2,028
17.9%
(30.8%)

45.4
0.4

3,894
3.0
3,779
6.7
3,589 million yen
3,045 million yen

Net income
per share(diluted)

(yen)

(yen)

14.23
9.79

－－

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

643,451
651,456

June 30, 2015
March 31, 2015

Note: Shareholders' equity

Shareholders'equity ratio

Net assets(Millions of yen)

144,844
142,749
As of June 30, 2015
As of March 31, 2015

Shareholders' equity
per share

(％)

22.3
21.7
143,507 million yen
141,415 million yen(yen)692.57682.46

２．Cash dividends
Cash dividends per shareFirst quarter
Second quarter
Third quarter
Year-end(yen)
(yen)
(yen)
(yen)

（effective date）
Year ended March 31, 2015
Year ending March 31, 2016
（estimated）－－

Annual(yen)

7.50

－

7.50

15.00

8.00

－

8.00

16.00

３．Forecast of consolidated financial results for fiscal year ending March 31, 2016 （％ of change from previous year）
Net sales

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

Profit attributable toowners of the Company(Millions of yen) (％) (Millions of yen) (％)

Ordinary income

Net income
per share(yen)Annual
1,800,000
3.6
22,30016.7
20,00040.2
12,00032.1
57.91* 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, 2015

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

Millions of yen
March 31, 2015

June 30, 2015

Increase(Decrease)

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

24,542
321,6422,610
133,055
29,442(915)
510,377

25,487309,849
2,655
125,260
38,740(345)
501,647945(11,793)45(7,795)
9,298
570(8,730)31,67629,27060,9462,019

32,73729,982
62,719
2,202

1,061
712
1,773
183

58,293
20,114(295)
78,112141,078
651,456

57,60819,570(296)
76,881
141,804
643,451(685)(544)(1)(1,231)726(8,005)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

180,155
82,15527,00010,0001,231
2,051
39,602
342,196

171,236
83,82320,00057
491
1,176
48,530325,316(8,919)1,668(7,000)(9,943)
(740)
(875)
8,928
(16,880)

Long-term liabilities;
Bonds payable
Long-term loans payable
Retirement benefits liabilities
OthersTotal long-term liabilities
Total liabilities

30,000122,352412
13,745
166,510508,706

30,118
128,472461
14,237173,290498,606

118
6,120
49
492
6,780
(10,100)

45,651
4
82,110(1,445)
126,32045,651
4
83,586(1,447)
127,794

―
―
1,476
(2)
1,474

11,621
1,526
3,250
2,356
(3,660)15,094
1,334
142,749
651,456

12,605
629
3,250
2,723
(3,495)
15,713
1,336
144,844643,451

984
(897)
―
367
165
619
2
2,095
(8,005)

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 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 incomeMinority interests
Total net assets
Total liabilities and net assets－２－HANWA co., ltd.

Financial Results for the First Quarter ended June 30, 2015

《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
Other income;Interest income
Dividend income
Reversal of allowance for doubtful account
OthersTotal other income
Other expenses;
Interest expenses
Loss on investment in affiliates
Foreign exchange lossOthers
Total other expensesOrdinary income

First quarter
ended
June 30, 2014

First quarter
ended
June 30, 2015

Increase(Decrease)423,335
410,114
13,220398,045
383,811
14,233(25,290)(26,303)
1,013

9,184
4,036

9,474
4,759

290
723

223
317
―
253
795

205
419
612
268
1,505

(18)
102
612
15
710

719
―
33
299
1,052
3,779

696
1,245
124
303
2,370
3,894

(23)
1,245
91
4
1,318
115

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

――350
350

350
350―
―
3,779

150
150
4,094

150150315

Income taxes
Net income

1,741
2,037

1,155
2,939(586)902

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

2,028
9

2,948(9)920(18)

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

951
160(309)
205
―
1,007
3,045

983(896)
263
164
135
650
3,589

32(1,056)
572(41)135(357)
544

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

3,082
(37)

3,566
22484
59－３－HANWA co., ltd.

Financial Results for the First Quarter ended June 30, 2015

《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 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 cement
Segment information by business category for the first quarter ended June 30, 2014 and 2015, is as follows:(Rounded down to millions of yen)First quarter ended June 30, 2014

Millions of yenReportable segment

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

Petroleum

Subtotal

Steel

Metals Non-ferrous& alloys metals

Foods

199,930
5,330
205,260
3,484

29,958
1,703
31,661815

21,358 118,159 387,613
216
1,580
9,161
21,575 119,739 396,774
511
636
5,624

18,206330
18,537176& chemicals

OtherTotal

35,722 423,335
18,565 27,727
54,288 451,062
(218)
5,405

First quarter ended June 30, 2015

Adjustment― 423,335(27,727)―(27,727) 423,335(1,626)
3,779

Millions of yen

Reportable segmentNet sales
Customers
Inter-segment
TotalSegment income(loss)

Consolidated

SteelMetals Non-ferrous& alloys metals

Foods

195,1425,024
200,166
2,859

36,756
1,006
37,763684

24,825104
24,93070

23,681
268
23,950395

Petroleum& chemicals

Subtotal

78,433 358,838
1,484
7,889
79,917 366,728
382
4,393

OtherTotal

39,206 398,045
24,712 32,602
63,918 430,647
504
4,897

Adjustment

Consolidated― 398,045(32,602)―(32,602) 398,045(1,002)
3,894

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

－４－