Financial Results for the Fiscal Year ended March 31, 2023
(Japan GAAP)May 12 2023
Company name:

HANWA Co.,Ltd.

Listed stock exchange: Tokyo

Stock exchange code:

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

Representative:
Yoichi Nakagawa President
Enquiries:
Hisashi Honda
Executive Officer
Scheduled date of Shareholders' Meeting:Jun 23, 2023
Scheduled date of issue of audited financial statements: Jun 26, 2023
Scheduled date of payout of dividend:
Jun 26, 2023

Phone +81-3-3544-2000(Amounts less than one million yen are rounded down)

１．Consolidated financial results for the Fiscal Year ended March 31, 2023 (April 1, 2022 to March 31, 2023)(1) Consolidated operating results（Percentage indicate a change from the previous year）
Net sales
Fiscal Year
ended March 31, 2023
ended March 31, 2022

(Millions of yen)(％)

Operating income

Ordinary income(Millions of yen)

(Millions of yen)(％)

2,668,228
23.3
64,1052.8
2,164,049－
62,367113.3
Note: Comprehensive income
For the Fiscal Year ended March 31, 2023
For the Fiscal Year ended March 31, 2022
Net income
per share

Fiscal Year
ended March 31, 2023
ended March 31, 2022

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

(％)

64,2722.5
51,50518.1
62,718117.6
43,617122.3
71,336 million yen
41.9 %
50,288 million yen
84.1 %Net income
Ratio of net income to
Ratio of ordinary
Ratio of operating
per share(diluted) shareholders' equity income to total assets income to net sales

(yen)

(yen)

1,267.44
1,073.34

(％)

－
－

(％)

19.1
20.5

(％)

4.5
4.9

2.4
2.9

* From the beginning of the fiscal year ending March 31, 2022, the Company applies the Accounting Standard for Revenue Recognition (AccountingStandards Board of Japan Statement No. 29). As a result, the figures for the fiscal year ended March 31, 2022 in the above consolidated operating
results constitute the figures after application of said accounting standard. For this reason, rates of increase/decrease YoY are not shown for net
sales ended March 31 2022.

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

(Millions of yen)

1,157,747
1,715,394
As of March 31, 2023
As of March 31, 2022

As of March 31, 2023
As of March 31, 2022

Note: Shareholders' equity

Shareholders'equity ratio

Net assets

Net assets
per share(％)

308,807240,497
303,127 million yen
237,117 million yen

(yen)

26.2
13.8

7,459.39
5,834.98(3) Consolidated cash flows situation
Cash flows fromOperating activities
Fiscal Year
ended March 31, 2023
ended March 31, 2022

Cash flows from
Investing activities(Millions of yen)

(Millions of yen)

284,226(280,752)(6,539)(14,993)

Cash flows from
Financing activities

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

(351,835)
406,820

84,121
165,083

２．Cash dividends
Cash dividends per share
1st Quarter 2nd Quarter 3rd Quarter(yen)Year ended March 31, 2022
Year ended March 31, 2023
Year ending March 31, 2024

（estimated）(yen)

Year-end

(yen)

(yen)

Total
Dividend on
Dividend
amount ofshareholders'payout ratio
equitydividend
Annual(Consolidated) (Consolidated)(Annual)(yen) (Millions of yen)
(％)
(％)

－
－

50.00
50.00

－
－

50.00
80.00

100.00130.00

－

85.00

－

85.00

170.00

4,063
5,282

9.3
10.3

1.9
2.0

19.2

* For details, please refer to the news release titled "Notice Concerning Dividends of Surplus (Increased)" announced today (May 12, 2023).
３．Forecast of consolidated financial results for fiscal year ending March 31, 2024 (April 1, 2023 to March 31, 2024)（Percentage indicate a change from the previous year）

Net sales(Millions of yen) (％)

Annual

2,700,000

1.2

Operating income

Ordinary income(Millions of yen) (％)(Millions of yen) (％)

60,000(6.4)

50,000－1－(22.2)

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

36,000(30.1)Net income
per share(yen)

885.89HANWA Co.,Ltd.

Financial Results for the Fiscal Year ended March 31, 2023

《Consolidated Balance Sheets》(Amounts less than one million yen are rounded down)

Millions of yen
March 31, 2022

March 31, 2023

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

165,451
542,444
33,012
243,603289,119(1,580)1,272,049

84,187448,980
55,570253,964
87,333(1,295)
928,741

54,519(28,984)
25,534
34,67747,875(30,198)
17,67677,88910,556

57,917(31,360)
26,55736,78658,315(34,542)
23,773
87,117
10,80781,443
12,4371,288
261,133(1,403)354,898
443,344
1,715,394

99,60813,813
1,261
19,012(2,613)131,082
229,006
1,157,747

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

388,294
33,456458,984
40,00010,00016,0984,223
66
287,492
1,238,615

278,823
36,701
83,12730,00010,00014,822
4,355
56
101,103558,990

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

20,000190,890
5,716
1,524
4,454
13,693
236,280
1,474,896

30,000224,843
10,017871
4,285
19,932289,949
848,940

45,651
26
180,119(3,729)222,066

45,651
26
228,920(3,730)270,866

16,725(1,000)3,191(531)(3,334)
15,0503,379
240,497
1,715,394

23,972
673
1,975
8,360
(2,720)32,2605,680
308,807
1,157,747

Fixed assets;
Property and equipment;
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Land
Others
Accumulated depreciation
Others, net
Total 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
Non-controlling interests
Total net assets
Total liabilities and net assets－2－

HANWA Co., Ltd.

Financial Results for the Fiscal Year ended March 31, 2023

《Consolidated Statements of Income and Comprehensive Income》(Amounts less than one million yen are rounded down)

Millions of yen
Year ended
March 31, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Other income;Interest income
Dividend income
Equity in earnings of affiliates
OthersTotal other income
Other expenses;
Interest expenses
Foreign exchange loss
Commission fee
OthersTotal other expenses
Ordinary income

Year ended
March 31, 2023

2,164,049
2,045,040
119,008

2,668,228
2,539,686
128,541

56,64162,36764,43564,105

1,731
1,563
3,321
1,806
8,422

3,676
7,467
4,194
2,033
17,372

4,073
1,848
644
1,504
8,071
62,718

9,969
681
3,432
3,121
17,20564,272Extraordinary income;Gain on sale of property and equipment
Gain on sale of investment securities
Gain on bargain purchase
Arbitration related income
Total extraordinary income
Extraordinary loss;
Loss on devaluation of investments securities
Provision of allowance for doubtful accounts of affiliates
Value added taxes for prior periods
Total extraordinary loss
Income before income taxes and non-controlling interests

―
1,449
―
145
1,594

14,417655
722
268
16,063

1,055
118
―
1,174
63,138

―
―
4,375
4,375
75,961

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

20,160(1,426)
18,73344,40524,364(1,145)23,21852,742

Net income attributable to
Owners of the parent
Non-controlling interests

43,617787

51,505
1,237

1,532(1,373)
4,109
1,037

7,246
1,674
8,077
625

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 associates accounted
for using equity method
Total other comprehensive Income
Comprehensive Income

577

970

5,883
50,28818,594
71,336Comprehensive income attributable to
Owners of the parent
Non-controlling interests

49,201
1,087

69,8781,457－3－

HANWA Co.,Ltd.

Financial Results for the Fiscal Year ended March 31, 2023

《Consolidated Statements of Changes in Net Assets》(Amounts less than one million yen are rounded down)

Millions of yen
Shareholders' equity
Common Capital Retained
stock
surplus earnings
Balance at March 31, 2021
Cumulative effects of changes inaccounting policies
Restated balance

45,651Net
Total
NonDeferred
Foreign
Remeasurem
Total
unrealizedLand
valuation controlling
Treasuryhedge
currency
ents ofandshareholders' holding
revaluation translation
definedinterests
profit andstock
equitygains ondifference adjustments benefit plans translation
loss
adjustments
securities(3,729)1,402
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
Others
Net increase (decrease) during
the term, except for items undershareholders' equity
Total increase (decrease)
Balance at March 31, 2022

－ 137,825

Accumulated other comprehensive income－ 139,228(3,729)

372

3,191

(4,906)(4,384)9,467

2,642 191,857

181,150

1,402
15,193372

3,191(4,906)(4,384)9,467

2,642 193,259(3,250)(3,250)(3,250)

223

223

223

133

133

133

－

－

－

43,61743,61743,617

(0)

(0)

26

26

167

167

26
167

26
26

15,193

1,402

(0)

－
45,651

179,747

Total
net
assets40,890180,119(0)(3,729)40,916
222,066

1,531(1,373)

－

4,375

1,049

5,583

1,531
16,725(1,373)(1,000)

－
3,191

4,375
(531)

1,049
5,583
(3,334) 15,050

737

6,321

737 47,237
3,379 240,497

Millions of yen
Shareholders' equity
Common Capital Retained
stock
surplus earnings
Balance at March 31, 2022
Cumulative effects of changes inaccounting policies
Restated balance

45,651

180,119

Net
Total
NonDeferred
Foreign
Remeasurem
Total
unrealizedLand
valuation controlling
Treasuryhedge
currency
ents ofandshareholders' holding
revaluation translation
definedinterests
profit andstock
equitygains ondifference adjustments benefit plans translation
loss
adjustments
securities(3,729)－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
Others
Net increase (decrease) during
the term, except for items undershareholders' equity
Total increase (decrease)
Balance at March 31, 2023

26

Accumulated other comprehensive income

26

180,119

16,725(1,000)

3,191

(531)

(3,334) 15,050

3,379 240,497－(3,729)222,066－
16,725(1,000)

3,191

(531)

(3,334) 15,050

3,379 240,497(4,063)(4,063)(4,063)

246

246

246

(103)

(103)

(103)

1,216

1,216

1,216

51,50551,50551,505

(1)

(1)

－

－

－

－

(1)
－
－

－
45,651

222,066

Total
net
assets－ 48,800
26 228,920(1)(3,730)48,799270,866

7,247

1,674

(1,216)

8,891

7,247
23,972

1,674
673(1,216)
1,975

8,891
8,360

－4－

613

17,209613 17,209(2,720) 32,260

2,300

19,5102,300 68,310
5,680 308,807

HANWA Co.,Ltd.

Financial Results for the Fiscal Year ended March 31, 2023

《Consolidated Statements of Cash Flows》(Amounts less than one million yen are rounded down)

Millions of yen
Year ended
March 31, 2022

Year ended
March 31, 2023

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
Equity in earnings of affiliated companies (gain)
Gain on sale of property and equipment
Gain on bargain purchase
Gain on sale of investment securities of unconsolidated subsidiaries
Loss on devaluation of investments securities
Provision of allowance for doubtful accounts of affiliates
Arbitration related income
Value added taxes for prior periods(Increase)decrease in trade receivables and contract assets(Increase)decrease in inventories(Increase)decrease in accounts receivable-other(Increase)decrease in advanced payment
Increase(decrease) in trade payable
Increase(decrease) in accounts payable-other
Increase(decrease) in deposits received
Increase(decrease) in ｆorward exchange contracts(dept)
Increase(decrease) in commodity forwards contracts liabilities(Increase)decrease in long-term guarantee deposits
Increase(decrease) in retirement benefits
Other, net
Sub totalInterest and dividends received
Interest paid
Income taxes paid
Arbitration related income
Net cash provided by (used in) operating activities

63,138
6,123
392
690
(3,294)
4,073(3,321)――(1,449)
1,055
118
(145)
―
(173,734)(111,643)(216,220)(12,261)
175,780
14,56627,238
11,989181,201(240,054)
552
6,620(268,582)
3,129(4,155)(11,290)145(280,752)

75,961
7,368
193
805
(11,144)
9,969(4,194)(14,417)
(722)
(655)
―
―
(268)
4,375
88,701
6,714
198,852
8,903(116,530)
33,282(22,774)(16,141)(185,918)
243,464706
2,876
309,407
10,773(9,790)(26,431)268
284,226

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 acquisition of investment securities
Proceeds from sale and redemption of investment securities
Purchase of shares of subsidiaries resulting in change in scope of consolidation(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(50)
89(6,287)43(6,054)
2,368―(11,730)(239)
10,135(3,266)(14,993)(49)
401(12,858)
17,566(3,413)
1,331(7,400)2,318(3,529)125(1,031)(6,539)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
Payment for redemption of bonds
Payment for cash dividends
Cash dividends paid to non-controlling interests in consolidated subsidiaries
Purchase of investments in subsidiaries resulting in no change in scope of consolidation
Other, net
Net cash provided by (used in) financing activities

371,11240,00041,005(30,834)―(10,013)(3,255)
(133)
(100)
(961)
406,820(357,803)(10,000)
50,630(39,186)
19,911(10,000)(4,067)(309)―(1,010)(351,835)

1,265
112,339
50,8921,842
9165,083(7,279)(81,427)
165,083464―
84,121

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
Increase in cash and cash equivalents resulting from mergers with unconsolidated subsidiaries

Cash and cash equivalents at end of period－5－

HANWA Co.,Ltd.
Financial Results for the Fiscal Year ended March 31, 2023

《Segment information》
Segment information by business category for the fiscal year 2021 and 2022, is as follows:(Amounts less than one million yen are rounded down)

Fiscal Year ended March 31, 2022

Millions of yen

Reportable segment
Steel
Net sales
Customers
Inter-segment
Total
Segment income
Segment assets
Other
Depreciation
Depreciation of Goodwill
Interest income
Interest expenses
Equity in earnings of affiliates
Investment in affiliates
Property, plant and equipment
and Intangible assets increase

Primary
Metal
Metal Recycling

Foods

Energy& Living
Materials

983,651 195,597 127,573 116,167 280,397
24,512
6,373
4,015
531 10,371
1,008,164 201,970 131,588 116,699 290,769
35,958
7,247
2,883
3,024
6,784
563,951 701,699 41,650 52,480 55,050

Overseas
sales
subsidiaries

Subtotal

Other

Total

Adjustment

333,558 2,036,946 127,103 2,164,049― 2,164,049
339
46,144
3,186
49,330 (49,330)―
333,898 2,083,090 130,289 2,213,379 (49,330) 2,164,049
6,722
62,6203,726
66,346(3,628)62,718140,510 1,555,341 51,476 1,606,818 108,575 1,715,394

4,676
392
345
3,343
1,737
8,029

21
－
549
2,509
1,070
1,019

361
－
0
364
60
263

74
－
2
424
－
－

213
－
30
259
88
674

286
－
774
575
364
1,980

5,633
392
1,702
7,476
3,321
11,967

381
－
0
258
－
－

6,014
392
1,703
7,735
3,321
11,967108－
28(3,661)
－
－

6,123
392
1,731
4,073
3,321
11,967

9,512

107

288

181

298

150

10,540857

11,397163

11,561

Fiscal Year ended March 31, 2023

Millions of yen

Reportable segment
Steel
Net sales
Customers
Inter-segment
Total
Segment income (loss)
Segment assets
Other
Depreciation
Depreciation of Goodwill
Interest income
Interest expenses
Equity in earnings (losses) ofaffiliates
Investment in affiliates
Property, plant and equipment
and Intangible assets increase

Consolidated

Primary
Metal
Metal Recycling

1,232,686 267,389

29,444

6,647

1,262,130 274,037

28,477 13,934
589,143 156,421

Foods

Energy& Living
Materials

144,406 127,392 349,216
2,784
1,186 11,759
147,191 128,578 360,976
6,135(960) 11,574
45,586 66,113 57,355

Overseas
sales
subsidiaries

Subtotal

Other

Total

Adjustment

Consolidated

404,976 2,526,068 142,160 2,668,228― 2,668,228
44,23396,056
3,880
99,937 (99,937)―
449,210 2,622,125 146,040 2,768,165 (99,937) 2,668,228
7,278
66,4393,083
69,522(5,249)64,27287,403 1,002,025 43,615 1,045,640 112,107 1,157,747

5,523
193
914
5,711

25
－
1,448
10,052

285
－
0
831

108
－
3
699

234
－
43
547

577
－
1,389
1,351

6,754
193
3,798
19,193

499
－
0
317

7,253
193
3,799
19,510114－(122)(9,540)

7,368
193
3,676
9,969

(419)

3,246

96

－

128

1,142

4,194

－

4,194

－

4,194

8,007

4,229

484

－

942

3,514

17,177－

17,177－

17,177

15,327

233

476

401

363

809

17,612

4,136

21,748430

22,179Notes:
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 mainly ofcash 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.
3. Segment income or loss is adjusted between ordinary income on the consolidated statements of income and comprehensive income.

－6－

May 12, 2023

Highlights of Consolidated Financial Results for the FY2022(Japan GAAP)HANWA Co., Ltd.

Outline of Financial Results for the FY2022(Unit： billion yen, rounded down to 0.1 billions yen)・ During the fiscal year, net sales increased by 23% YoY, to 2,668.2 billion yen, because as economic activities continued to be on the right track for recovery, price of the products represented
by steel, non-ferrous metal and crude oil remained at a high level. In addition, enhancement in business performance of the overseas sales subsidiaries contributed to the net sales increase.
Operating income increased by 3% YoY, to 64.1 billion yen, as segment income increased in Primary metals business and Energy & Living Materials business, while ordinary income increased
by 2% YoY, to 64.2 billion yen, as dividend income from strategic investments increased and equity in earnings of affiliates expanded mainly in the Primary metals business, and net income
attributable to owners of the parent increased by 18% to 51.5 billion yen, as recorded a gain on sale of property and equipment in extraordinary income.
・ We plan to pay 130 yen as the annual (50 yen as the interim and 80 yen as the year-end) dividend.

Operating Results
Net sales
Gross profit

FY2021

FY2022Year-on-year
Change2,164.0

2,668.2

504.1

23%

119.0

128.5

9.5

8%

SG&A expenses

56.6

64.4

7.7

14%

Operating income

62.3

64.1

1.7

3%

Non-operating income

8.4

17.3

8.9

106%

Non-operating expenses

8.0

17.2

9.1

113%

Ordinary income

62.7

64.2

1.5

2%

Extraordinary gain

1.5

16.0

14.4

907%

Extraordinary loss

1.1

4.3

3.2

273%

Income before income taxes
and others

63.1

75.9

12.8

20%

Income taxes

18.7

23.2

4.4

24%

Net income

44.4

52.7

8.3

19%

Owners of the parent(loss)

43.6
0.7

51.5
1.2

7.8
0.4

EPS (yen)

1,073.34

1,267.44

194.10

18%
57%
18%

Comprehensive
income

50.2

71.3

21.0

42%

Non-controlling interests(loss)

Segment
Information

Net sales
FY2021

FY2022Main Factors

rate(Net sales)
Net sales increased by 23% YoY, to 2,668.2 billion yen, because as economic
activities continued to be on the right track for recovery, price of the products
represented by steel, non-ferrous metal and crude oil remained at a high level. In
addition, enhancement in business performance of the overseas sales subsidiaries
contributed to the net sales increase.
(SG&A expenses)
SG & A expenses increased by 7.7 billion yen YoY, with 1.0 billion yen of thisfigure deriving from newly consolidated subsidiaries. Personnel expenses rose by
2.9 billion yen YoY, with 0.7 billion yen of this figure deriving from newly
consolidated subsidiaries.

FY2021

FY2022Non-operating income increased by 8.9 billion yen and non-operating expenses increased by
9.1 billion yen. The main impacts on ordinary income were as follows.
Interest income：increase of 1.9 billion yen(YoY)
Dividend income：increase of 5.9 billion yen(YoY)
Equity in earnings of affiliates：increase of 0.8 billion yen(YoY)
Interest expenses：increase of 5.8 billion yen(YoY)
Foreign exchange loss：decrease of 1.1 billion yen(YoY)
Commission fee：increase of 2.7 billion yen(YoY)(Extraordinary gain/loss)
Gain on sale of property and equipment：14.4 billion yen
Gain on sale of investment securities：decrease of 0.7 billion yen(YoY)
Gain on bargain purchase：0.7 billion yen
Arbitration related income：increase of 0.1 billion yen(YoY)
Value added taxes for prior periods：4.3 billion yen

1,157.7(557.6)(33%) (Overview)

1,272.0
443.3

928.7
229.0

(343.3)(214.3)

(27%)
(48%)

1,474.8

848.9(625.9)

(42%)

722.9
557.4

380.9
296.7

235%/203*%

98%/83*%(341.9)(260.6)(137pt)

(47%)
(47%)
(58%)

240.4

308.8

68.3

28%

222.0
270.8
15.0
32.2
3.3
5.6
5,834.98
7,459.39
237.1
303.1
13.8/15.3*% 26.2/28.3*%

48.7
17.2
2.3
1,624.41
66.0
12.4pt

22%
114%
68%
28%
28%
89%

(Current assets)(Fixed assets)
Total liabilities(Interest-bearing debt)(Net interest-bearing debt)

Total net assets(Equity capital)(Valuation & translation
adjustments)(Non-controlling interests)

BPS (yen)
Shareholders' equity

Main Factors

FY2021

Cash Flow
Cash flows from operating
activities
Cash flows from investing
activities
Cash flows from financing
activities
Cash and cash equivalents
at end of period

Steel1,008.1

1,262.1

25%

35.9

28.4

(21%)

Primary Metal

201.9

274.0

36%

7.2

13.9

92%

Metal Recycling

131.5

147.1

12%

2.8

6.1

113%

Foods
Energy&Living Materials
Overseas sales
subsidiaries

116.6
290.7
333.8

128.5
360.9
449.2

10%
24%
35%

3.0
6.7
6.7

(0.9)
11.5
7.2

―
71%
8%

Total for reportablesegments

2,083.0

Other

130.2

146.0

12%

3.7

3.0

(17%)

Total

2,213.3

2,768.1

25%

66.3

69.5

5%

Adjustment(49.3)(99.9)

103%

(3.6)

(5.2)

45%

Consolidated

Topics2,164.0

2,622.1

2,668.2

26%

23%

62.6

62.7

66.4

64.2

6%

2%

・ Jun. Established Hanwa Daisun Co., Ltd. as a consolidated subsidiary of the Company.
・ Sep. Established Hanwa Italia S.R.L. as a subsidiary of the Company.
・ Dec. Acquired 90.2% of the shares of Tanaka Steel Trading Co., Ltd. and made it a consolidated subsidiary of the Company.
・ Mar. Acquired the shares in Misawa Trading Co., Ltd., a subsidiary of Sumitomo Electric Industries, Ltd.

Main Factors

rate

While we have conducted hedge transactions which involve valuation gains or losses attributable tocounter parties based on contracts, accounts receivable-other and long-term guarantee deposits decreased
due to decrease in the outstanding contract amount of the commodity forwards contracts, collection of
accounts receivable-other and a fall in futures prices on the London Metal Exchange.
In addition, the Company repaid part of short-term loan payable provided by financial institute.

(Total Assets)
Total assets decreased by 33% from the end of the previous fiscal year, mainly because of
decreases in long-term guarantee deposits and accounts receivable-other.

(Liabilities)
Liabilities decreased by 42% from the end of the previous fiscal year, mainly because of
decrease in short-term loans payable and commodity forwards contracts liabilities.
As interest-bearing debt decreased by 47%, net debt-equity ratio was turned into 98%（*83%).

(Net assets)
Total net assets increased 28% from the end of the previous fiscal year because of accumulation ofretained earnings from net income attributable to owners of parent as well as a fluctuation in foreign
currency translation adjustments.
Shareholders' equity ratio was 26.2% (*28.3%), which is 12.4 percentage points higher than at the endof the previous fiscal year.
*Reflecting equity credit attributes of the subordinated loan

YoY

FY2022

ChangeMain Factors

rate(280.7)

284.2

564.9

―

(14.9)

(6.5)

8.4

△56%

406.8

(351.8)(758.6)

―

165.0

84.1

(80.9)△49%

1st half

3,000.02,500.0(Operating cash flows)Due mainly to decrease in long-term guarantee deposits and accounts receivable-other.

(Investment cash flows)Due mainly to purchase of tangible fixed assets and shares of subsidiaries
resulting in change in scope of consolidation.
(Financial cash flows)Due mainly to repayment of loans payable with collection of long-term guarantee deposits.

1,500.0
500.0【Quarterly Operating Results】

2nd half

1,907.4

1,745.5

961.4
946.0

801.0

FY2019

Applying the
AccountingStandard for
Revenue
Recognition

Applying the
AccountingStandard for
Revenue
Recognition

0.0
FY2020800.0

1,329.3

1,183.7944.4

1,000.0

2,668.2

2,164.0

1,000.0(Steel business)
Net sales increased. Transaction volume continued to be stable mainly in the domestic constructionindustry and steel prices remained at a high level due to the spread of increases in manufacturing
cost were reflected in steel prices. On the other hand, segment income decreased due to purchasecost rose, profit margins shrunk mainly at some overseas sales subsidiaries and equity in earnings ofaffiliates from overseas investment decreased.
(Primary metals business)
Segment income increased. Price of the products such as nickel remained at a relatively high level.
In addition, dividend income from strategic investments as well as equity in earnings of affiliatesfrom SAMANCOR CHROME HOLDINGS PROPRIETARY LTD. contributed to segment income
increased.
(Metal recycling business)
Segment income increased. Transaction volume of various merchandises continued to be stable andpurchase cost risings due to the depreciation of yen were reflected in the selling prices. In addition,
appraisal gain from commodity forwards contracts in hedge transactions contributed to segment
income increased.
(Foods business)
Segment income decreased. While demand for marine products expanded on a global scale,purchase cost risings due to the depreciation of yen were not sufficiently reflected in the selling
prices.
In addition, as import of crabs from Russia were banned in some countries including the U.S. anddecline in crab market prices due to shrink of stay-at-home demand mainly in Europe and theAmerica, appraisal loss on the products was reported by the Company and its consolidated
subsidiaries, and as the result the segment income decreased.
(Energy & Living Materials business)
Segment income increased. Market prices of crude oil and petroleum products remained at a highlevel due to the crisis in Ukraine, income from the products such as bunker fuel oil increased. In
addition, both transaction volume and unit prices of palm kernel shells (PKS) and wood pellet fuelrose due to a demand increase on a global scale contributed to segment income increased.
(Overseas sales subsidiaries)
Segment income increased. Transaction volume of steel increased in some countries, includingIndonesia and Singapore.

Change【Changes in Net Sales】

2,000.0
rate

1,715.3

Shareholders' equity ratio(Non-operating income/expenses)

Segment income
rateMar. 2023

Total assets

Net DER

Comparison with Mar. 2022

Mar. 2022

Financial Position

980.3

1,338.9

FY2021

FY2022

Net sales

600.0

560.7

400.0

18.8

1st half

4Q

30.0

17.2

14.7

8.1

FY2022/1Q

2Q

3Q

4Q

5.0
4.0

331.1

37.1

1 .6

20.9

300.0

6.8

3.0

2 .4

301.6

380.9

1 .3

1.0
1 .1

0 .8

0.0

FY2020

FY2021FY2019FY2022

2.0

1.0

2 .0
1 .3

-18.8
-13.6
FY201910.0

Interest-bearing debt

600.0

22.7
19.6

△20.0

20.0

Net DER Net DER
722.9
Reflecting
subordinatedloan
Reflecting
subordinated
loan

900.0

14.4

40.0

5.1

40.0

【Changes in Interest-bearing Debt】

43.6

0.0

50.0

0.0
FY2021/3Q

51.5

12.8

24.1
13.1

644.8

0.0

2nd half

20.0

623.0

684.5

673.4

665.5

200.0

【Changes in Net Income】
60.0

60.0

Operating income

Applyng the Accounting Standard for Revenue Recognition

FY2020

FY2021

0.0

FY2022

FY2023(estimated)change2,668.2

2,700.0

1%Interim (yen)

50.00

50.00

85.00

Operating income

64.1

60.0

△6%

Year-end (yen)

50.00

80.00

85.00

Ordinary income

64.2

50.0

△22%

Annual (yen)100.00130.00170.00Net income attributable toowners of parent

51.5

36.0

△30%

Dividend payout ratio

9%

10%

19%

Forecast(Annual)

Net sales

FY2022

Cash Dividends

FY2021

FY2022

FY2023(estimated)