Financial Results for the Fiscal Year ended March 31, 2009
(Consolidated financial results have been prepared in accordance with accounting principles generally accepted in Japan)

May 14, 2009
Company name:

HANWA Co.,Ltd.

Listed stock exchange:
Stock exchange code:

Tokyo, Osaka
8078

Representative:
Enquiries:

Shuji Kita
Tetsuro Akimoto

The date of Shareholders' Meeting:
The date of issue of audited financial statements:(URL http://www.hanwa.co.jp)
President
Senior Managing Director of Accounting Dept.
TEL 81 - 3 - 3544 - 2190
June 26, 2009
June 29, 2009

The date of payout of dividend: June 29, 2009
(Rounded down to millions of yen)

１．Consolidated financial results for the fiscal year ended March 31, 2009
(1) Consolidated operating results（％ 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)(％)

1,539,281
1,507,509

2.1
14.2

17,451
23,704(26.4)
13.6

15,007
21,267(29.4)
10.9

5,997
13,117(54.3)
14.8

Year ended March 31, 2009
Year ended March 31, 2008

Ratio of net income to
Ratio of ordinary
Ratio of operating
Net income
per share(diluted) shareholders' equity income to total assets income to net sales

Net income
per share
(yen)

(yen)

(％)

28.47
－
62.07
－
Note: Equity in earnings of unconsolidated subsidiaries and affiliates
Year ended March 31, 2009
Year ended March 31, 2008

(％)

(％)

6.2
3.1
4.4
13.3
Year ended March 31, 2009
Year ended March 31, 2008

1.1
1.6
－ million yen－ million yen

Shareholders'equity ratio

Shareholders' equity
per share(2) Consolidated financial position
Net assets

Total assets(Millions of yen)

479,379
482,014

March 31, 2009
March 31, 2008

Note: Shareholders' equity(Millions of yen)

94,912
100,926
As of March 31, 2009
As of March 31, 2008

(％)

(yen)

19.7
20.7
94,197 million yen
100,111 million yen

450.05473.70(3) Consolidated cash flows situation
Cash flows fromOperating activities
Year ended March 31, 2009
Year ended March 31, 2008

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)

(5,742)
21,430(19,535)(8,443)

46,591(9,144)35,046
14,178

２．Cash dividends
Cash dividends per shareFirst
quarter（effective date）(yen)
Year ended March 31, 2008
Year ended March 31, 2009
Year ending March 31, 2010
（estimated）

Secondquarter

Third
quarter(yen)

Year-end(yen)

Annual(yen)

Dividend on
Total amount Dividend
shareholders'of dividend payout ratio
equity（Annual） （Consolidated） （Consolidated）(yen) (Millions of yen) (％)

―
―

6.00
6.00

―
―

6.00
6.00

12.00
12.00

―

6.00

―

6.00

12.00

2,536
2,523

(％)

19.3
42.1

2.6
2.6

34.9

３．Forecast of consolidated financial results for fiscal year ending March 31, 2010 （％ 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)(70.2)(73.6)(76.7)
4,500
2,700Interim537,000(41.1)
5,900
12.90
14,800(15.2)(20.0)
20.1
12,0007,200
Annual
1,106,000(28.1)
34.40* 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, 2009

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

Millions of yen
March 31, 2008

March 31, 2009

Increase(Decrease)

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

14,191
263,192
92,982
1,823
19,474(891)
390,772

35,200233,282
90,765
1,560
25,524(781)
385,552

21,009(29,910)(2,217)
(263)
6,050
110
(5,220)

11,63524,453
6,652
42,741808

12,331
27,966
6,109
46,407
733

696
3,513
(543)
3,666
(75)

31,443262
69
16,673(756)
47,692
91,242
482,01428,022219
883
20,746(3,186)
46,686
93,826479,379(3,421)
(43)
814
4,073
(2,430)(1,006)
2,584(2,635)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

168,287
49,73817,00010,0004,813
1,763
29,416
281,019

130,720
89,362
―
―
189
1,789
30,426
252,487(37,567)
39,624(17,000)(10,000)(4,624)26
1,010(28,532)

Long-term liabilities;
Bonds payable
Long-term loans payable
Deferred tax liabilities
Deferred tax liabilities by land revaluation
OthersTotal long-term liabilities
Total liabilities

10,00079,325
4,001
2,798
3,943
100,068
381,088

10,000115,150
―
2,686
4,142
131,978
384,466―
35,825(4,001)(112)
199
31,9103,378

45,651
4
51,028(130)
96,55445,651
4
54,650(755)
99,550

―
―
3,622
(625)
2,996

5,397
143
(16)
(1,966)
3,557
814
100,926
482,014(3,213)(248)(180)(1,710)(5,353)715
94,912
479,379(8,610)
(391)
(164)
256
(8,910)(99)(6,014)(2,635)

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
Valuation and translation adjustments;
Net unrealized holding gains on securities
Deferred hedge profit and loss
Land revaluation difference
Foreign currency translation adjustments
Total valuation and translation adjustments
Minority interests
Total net assets
Total liabilities and net assets－２－

HANWA co.,ltd.

Financial Results for the Fiscal Year ended March 31, 2009

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

Millions of yen
Year ended
March 31, 2008

Year ended
March 31, 2009

Increase(Decrease)

1,507,509
1,456,627
50,881

1,539,281
1,491,569
47,712

31,772
34,942(3,169)27,176
23,70430,26017,451

3,084(6,253)

1,920
507
508
2,936

1,990
1,747
526
4,264

70
1,240
18
1,328

4,163
1,209
5,373
21,267

4,336
2,371
6,707
15,007

173
1,162
1,334
(6,260)

527
527

―
―

(527)
(527)

Total extraordinary loss
Income before income taxes and minority interest――――
21,795

211
2,506
908
3,626
11,381

211
2,506
908
3,626
(10,414)

Income, inhabitant & business tax - current
Income tax expense-deferred
Minority interest in net income
Net income

8,633
5
39
13,117

3,998
1,356
28
5,997

(4,635)
1,351(11)(7,120)Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Other income;Interest and dividend income
Foreign exchange gain
OthersTotal other income
Other expenses;
Interest expenses
OthersTotal other expenses
Ordinary income
Extraordinary income;Gain on sales of investment securities
Total extraordinary income
Extraordinary loss;
Loss on sale of property and equipment
Loss on devaluation of investments securities
Foreign exchange loss on common stock reduction of consolidated subsidiary－３－

HANWA co.,ltd.

Financial Results for the Fiscal Year ended March 31, 2009
《Consolidated Statements of Changes in Net Assets》(Rounded down to millions of yen)

Millions of yen
Shareholders' equity
Commonstock
Balance at March 31, 2007

45,651

Increase (decrease) during the term:
Cash dividends paid
Staff and workers' bonuses andwelfare fundNet income
Purchase of treasury stocks
Deposition of treasury stocks
Net increase (decrease) during
the term, except for items undershareholders' equity
Total increase (decrease)
Balance at March 31, 20083(109) 86,205(2,747)(2,747)(2,747)

(2)

(2)

(2)

13,117(26)
713,117
(26)
7

(26)
5

1

1
4

10,36751,028(21) 10,348(130) 96,554

11,405838(16)(947) 11,280

768

Total
net
assets40,66013,117－45,651

Valuation and translation adjustments

Net
Total
Total
DeferredForeign
MinorityLand
valuation
Capital Retained Treasury sharehol unrealized
hedge
currency
andrevaluation translation
holding
interests
profit andsurplus earnings stockders'
difference adjustments translation
gains onloss
adjustments
equity securities

98,254(6,008)(694)－(1,019)(7,722)

46(7,676)(6,008)
5,397

(694)
143

－
(16)

(1,019)(1,966)(7,722)
3,557

46
2,671
814 100,926

Millions of yen
Shareholders' equity

Valuation and translation adjustments

Net
Total
Common Capital Retained Treasury sharehol unrealized
holding
stock surplus earnings stockders'
gains onequity securities

Balance at March 31, 2008

45,651

Increase (decrease) during the term:
Cash dividends paid
Staff and workers' bonuses andwelfare fundReversal of land revaluationdifference
Net income
Purchase of treasury stocks
Deposition of treasury stocks
Effect from change in scope of
consolidated subsidiaries
Net increase (decrease) during
the term, except for items undershareholders' equity
Total increase (decrease)
Balance at March 31, 20094(130) 96,554(2,535)(2,535)(2,535)

(3)

(3)

(3)

163

163

163

5,997
(632)
6

5,997
(632)
6

(632)
6

(0)

－
45,651

(0)
4

3,622
54,650(625) 2,996(755) 99,550

－４－

143

(16)

(1,966)

3,557

Total
net
assets51,028

5,997

5,397

Total
DeferredForeign
MinorityLand
valuation
hedge
currency
andrevaluation translationinterests
profit andtranslationdifference adjustments
loss
adjustments

814 100,926(8,610)

(392)

(163)

255

(8,910)(99)(9,009)(8,610)(3,213)

(392)
(248)

(163)
(180)

255
(1,710)(8,910)(5,353)(99) (6,013)
715 94,912

HANWA co.,ltd.

Financial Results for the Fiscal Year ended March 31, 2009

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

Millions of yen
Year ended
Year ended
March 31, 2008 March 31, 2009
Cash flows from operating activities:
Income before income taxes
Depreciation and amortization
Increase(decrease) in allowance for doubtful receivables
Interest and dividend income
Interest expense
Gain on sales of investment securities
Loss on sale of property and equipment
Loss on devaluation of investments securities

Increase(Decrease)(Increase)decrease in trade receivables(Increase)decrease in inventories
Increase(decrease) in trade notes and accounts payable
Increase(decrease) in deposits received
Other, net
Sub totalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities

21,7952,055(10)(1,920)
4,163
(527)
―
―
―
(4,642)(5,030)8,392
9,416(2,202)
31,489
1,915(4,106)(7,868)21,43011,381
2,358
2,322(1,990)
4,336
―
211
2,506
908
28,537
1,163(36,465)(8,360)(1,270)5,639
1,958(4,175)(9,164)(5,742)(10,414)
303
2,332
(70)
173
527
211
2,506
908
33,1796,193(44,857)(17,776)932(25,850)43(69)(1,296)(27,172)

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(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―
4(3,992)
33(5,118)
1,811
(247)
(14)
205
(1,125)(8,443)(353)
212(6,512)509(15,555)
2,131
117
(31)
79
(132)
(19,535)(353)
208(2,520)476(10,437)
320
364
(17)
(126)
993
(11,092)

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
Payment for cash dividends
Cash dividends paid to minority interest in consolidated subsidiaries
Other, net
Net cash provided by (used in) financing activities(15,760)
(500)
―
(50)
9,950
―
(2,747)(17)(19)(9,144)39,933(17,000)
60,675(23,800)―(10,000)(2,540)(4)(670)
46,591

55,693(16,500)
60,675(23,750)(9,950)(10,000)
207
13
(651)
55,735

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
Cash and cash equivalents at end of year

107
3,949
10,22814,178(446)
20,867
14,17835,046(553)
16,9183,950
20,867

Foreign exchange loss on common stock reduction of consolidated subsidiary－５－

HANWA co.,ltd.

Financial Results for the Fiscal Year ended March 31, 2009

《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
Other business : Lumber, machinery, and others
Segment information by business category for the years ended March 31, 2008 and 2009 is as follows:(Rounded down to millions of yen)

Year ended March 31, 2008

Millions of yen

Net sales
Costs and expenses
Operating income

Petroleum Other
Metals Non-ferrous
Steel & alloys metals Foods & chemicals business Total Corporate Consolidated
790,340 202,019 65,344 84,671 311,480 53,652 1,507,509― 1,507,509
774,465 195,399 63,329 83,894 308,935 52,227 1,478,252
5,552 1,483,804
15,874
6,619
2,014
776
2,545
1,424
29,256 (5,552)
23,704

AssetsDepreciation
Capital expenditure

274,802
1,408
3,795

Year ended March 31, 2009

47,86724
47

14,76250
44

31,16628
3135,38030
36

12,758431
375

416,737
1,974
4,329

65,27681
67482,014
2,055
4,396

Millions of yen

Net sales
Costs and expenses
Operating income

Petroleum Other
Metals Non-ferrous
Steel & alloys metals Foods & chemicals business Total Corporate Consolidated
877,755 155,841 51,859 82,218 320,816 50,789 1,539,281― 1,539,281
867,521 153,749 50,791 80,572 316,014 47,407 1,516,056
5,774 1,521,830
10,234
2,092
1,068
1,645
4,801
3,382
23,225 (5,774)
17,451

AssetsDepreciation
Capital expenditure289,944
1,648
4,739

34,628
30
110

6,093
72
354

28,04625
304

23,60036
242

15,277455
752

397,591
2,268
6,503

81,78889776

479,379
2,358
7,279

Notes:
Corporate costs and expenses mainly consist of expenses of administrative departments.
Corporate assets mainly consist of cash and equivalents, investment securities and assets of administrative departments.

－６－