Financial Results for the Fiscal Year ended March 31, 2020
(Japan GAAP)May 13, 2020
Company name:

HANWA Co.,Ltd.

Listed stock exchange: Tokyo

Stock exchange code:

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

Representative:
Hironari Furukawa President
Enquiries:
Yoichi Nakagawa Director, Senior Managing Executive Officer
Scheduled date of Shareholders' Meeting:Jun 24 2020
Scheduled date of issue of audited financial statements: Jun 25, 2020
Scheduled date of payout of dividend:
Jun 25, 2020

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, 2020 (April 1, 2019 to March 31, 2020)(1) Consolidated operating results（Percentage indicate a change from the previous year）
Net sales
Fiscal Year
ended March 31, 2020
ended March 31, 2019

Operating income(Millions of yen)(％)

(Millions of yen)(％)

1,907,493(8.1)
27,330(5.4)
2,074,600
15.8
28,90410.2
Note: Comprehensive income
For the Fiscal Year ended March 31, 2020
For the Fiscal Year ended March 31, 2019
Net income
per share

Fiscal Year
ended March 31, 2020
ended March 31, 2019

Profit attributable toowners of the Company

Ordinary income(Millions of yen)(％)

(Millions of yen)(％)

(12,598)－(13,674)－
23,395(8.3)
13,914(19.8)(29,972) million yen－%
3,444 million yen(84.7) %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)

(336.51)342.41

(％)

－
－

(％)

(7.8)
7.4

(％)

(1.5)
2.6

1.4
1.4

(2) Consolidated financial position
Total assets(Millions of yen)
As of March 31, 2020
As of March 31, 2019

Note: Shareholders' equity

Shareholders'equity ratio

Net assets(Millions of yen)

798,442933,307
As of March 31, 2020
As of March 31, 2019

Net assets
per share(％)

166,097
202,459
163,648 million yen
188,245 million yen

(yen)

20.5
20.2

4,027.01
4,632.55(3) Consolidated cash flows situation
Cash flows fromOperating activities
Fiscal Year
ended March 31, 2020
ended March 31, 2019

Cash flows from
Investing activities

Cash flows from
Financing activities(Millions of yen)

(Millions of yen)

74,261
15,417(24,159)(20,623)

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

(42,314)
28,132

67,24358,384

２．Cash dividends
Total
amount ofdividend(Annual)Cash dividends per share
1st Quarter 2nd Quarter 3rd Quarter
Year ended March 31, 2019Year ended March 31, 2020
Year ending March 31, 2021
（estimated）

Year-end

Annual

(yen)

(yen)

(yen)

(yen)

－
－

75.00
75.00

－
－

75.00
25.00

150.00100.00(yen) (Millions of yen)

－

－

－

－

－

6,095
4,063

Dividend on
Dividend
shareholders'payout ratio
equity(Consolidated) (Consolidated)

(％)

(％)

43.8
－

3.2
2.3

－

The dividend forecasts for the fiscal year ending March 31, 2021 are currently undetermined due to difficulty calculating
the forecasts of consolidated financial results for the fiscal year. The forecasts will be promptly announced when it
becomes available.

３．Forecast of consolidated financial results for fiscal year ending March 31, 2021 (April 1, 2020 to March 31, 2021)
The forecasts of consolidated financial results for the fiscal year ending March 31, 2021 are currently undeterminedbecause it is difficult to reasonably calculate the impact of the spread of novel coronavirus on our group businessactivities and financial results. The forecasts will be promptly announced when it becomes available.

－1－

HANWA Co., Ltd.

Financial Results for the Fiscal Year ended March 31, 2020

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

Millions of yen
March 31, 2019

March 31, 2020

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

59,307416,394
36,637
1,190
140,633
71,328(504)
724,987

67,256
341,559
21,281
1,167
127,460
69,949(1,046)627,629

22,17633,864
7,624
5,196
68,862
5,031

26,252
34,1658,624
6,119
75,162
6,331

101,900
21,162385
12,304(1,327)
134,426
208,319
933,307

56,892
19,141600
13,754(1,070)89,318170,812
798,442

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

280,858
4,964
92,851
10,021
3,486
2,647
253
59,833454,916

202,671
19,146
67,177
10,021
2,466
2,774
481
59,913364,653

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

50,034208,936
3,173
1,591
5,950
6,245
275,931730,847

40,013
212,372
1,308
1,562
6,162
6,271
267,691
632,344

45,651
139,036(3,737)
180,949

45,651
119,475(3,728)161,398

10,80061
3,343(1,435)(5,473)
7,295
14,214202,459
933,307

6,042
745
3,277
(2,434)(5,380)2,250
2,448
166,097
798,442

Fixed assets;
Property and equipment;
Buildings and structures
Land
Machinery, equipment and vehicles
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
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, 2020

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

Millions of yen
Year ended
March 31, 2019
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Other income;Interest income
Dividend income
OthersTotal other income
Other expenses;
Interest expenses
Equity in losses of affiliate
Foreign exchange loss
OthersTotal other expenses
Ordinary income

Year ended
March 31, 2020

2,074,600
1,995,378
79,222

1,907,493
1,827,666
79,82650,31828,90452,49627,330

4,195
1,383
1,387
6,965

2,142
1,868
1,316
5,327

5,052
75
3,331
4,014
12,474
23,3955,494
35,4392,515
1,805
45,255(12,598)

Extraordinary income
Gain on sale of property and equipment
Gain on sale of investment securities
Total extraordinary income
Extraordinary loss;
Loss on sale of property and equipment
Loss on retirement of property and equipment
Loss on impairment of property and equipment
Loss on natural disaster
Loss on devaluation of investments securities
Provision of allowance for doubtful accounts of affiliates
Provision for product warranties
Loss on disposal of property and equipment
Total extraordinary loss
Income before income taxes and minority interest

416
―
416

229
976
1,206

202
236
251
32
1,820
203
―
109
2,856
20,955

―
―
1,003
―
6,589
615
394
―
8,603
(19,995)

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

7,396
(266)
7,130
13,825

5,962
(406)
5,555
(25,548)

Net income attributable to
Net income attributable to owners of the Company
Net income(loss) attributable to non-controlling interests

13,914(88)(13,674)(11,876)(3,549)
230
(799)
(79)

(4,755)684
287
92(6,183)(730)(10,381)3,444(4,421)(29,972)

5,964(17,974)(2,520)(11,997)

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
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income(loss) attributable to non-controllinginterests－3－

HANWA co.,ltd.

Financial Results for the Fiscal Year ended March 31, 2020

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

Millions of yen
Shareholders' equity
Common Capitalstock
surplus
Balance at March 31, 2018

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
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, 2019

Accumulated other comprehensive income

Net
Total
RetaineTreasury sharehol unrealized
holding
d
stock
ders'
gains onearnings
equity securities(3,726) 172,969(6,095)(6,095)(6,095)

569

569

569

(17)

(17)

(17)

(379)

(379)

(379)

13,914

13,914

13,914

(1)

(1)

－

－

－

－

－

－

(9)

(9)

－

－

－
45,651－ 7,991－ 139,036(9)(11) 7,979(3,737) 180,949

(169)

2,963

3,110

(5,388) 14,858

Total
net
assets－ 131,045(1)

14,342

Total
DeferredForeign
Remeasure
MinorityLand
valuation
hedge
currency
ments ofandrevaluation translationinterests
definedprofit anddifference adjustments benefit plans translation
loss
adjustments(3,542)230

379(4,545)(85)(3,542)
10,800

230
61

379
3,343

(4,545)(1,435)(85)(5,473)(7,562)

15,872 203,700(1,657)(9,220)(7,562) (1,657) (1,240)
7,295 14,214 202,459

Millions of yen
Shareholders' equity
Common Capitalstock
surplus
Balance at March 31, 201945,651

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
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, 2020

Accumulated other comprehensive income

Net
Total
RetaineTreasury sharehol unrealized
holding
d
stock
ders'
gains onearnings
equity securities(3,737) 180,949(6,095)(6,095)(6,095)

(906)

(906)

(906)

1,141

1,141

1,141

66

66

66

(13,674)(13,674)(13,674)

(0)

(0)

(0)

0

0

0

(91)

(91)

9

9

0

－
45,651－ (19,560)－ 119,475

99 (19,551)(3,728) 161,398

－4－

61

3,343

(1,435)(5,473)

7,295

Total
net
assets－ 139,036(91)

10,800

Total
DeferredForeign
Remeasure
MinorityLand
valuation
hedge
currency
ments ofandrevaluation translationinterests
definedprofit anddifference adjustments benefit plans translation
loss
adjustments

14,214 202,459(4,758)

684

(66)

(998)

93

(5,045) (11,765) (16,811)(4,758)
6,042

684
745

(66)
3,277

(998)
(2,432)93(5,380)(5,045) (11,765) (36,362)
2,250
2,448 166,097

HANWA co.,ltd.

Financial Results for the Fiscal Year ended March 31, 2020

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

Millions of yen
Year ended
March 31, 2019Year ended
March 31, 2020

Cash flows from operating activities;
Income before income taxes
Depreciation and amortization
Loss on impairment of property and equipment
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 sale of investment securities of unconsolidated subsidiaries
Loss on sale of property and equipment
Loss on retirement of property and equipment
Loss on natural disaster
Loss on devaluation of investments securities
Provision of allowance for doubtful accounts of affiliates
Provision for product warranties
Loss on disposal of property and equipment(Increase)decrease in trade receivables(Increase)decrease in inventories
Increase(decrease) in trade notes and accounts payable(Increase)decrease in deposits received
Increase(decrease) in advanced payment
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

20,955
4,513
251
671
422
(5,578)
5,052
75
(416)
―
202
236
32
1,820
203
―
109
(24,019)(4,357)
17,181
21,097(29,789)
1,009
13,731
23,404
5,858(4,919)(8,926)
15,417(19,995)
5,245
1,003
514
(358)
(4,010)5,494
35,439
(229)
(976)
―
―
―
6,589
615
394
―
95,20921,897(69,814)(10,004)
12,212321
2,421
81,9694,931(5,594)(7,044)74,261

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(Increase)decrease in short - term loans receivable, net
Increase in long - term loans receivableCollection of long-term loans receivable
Other, net
Net cash provided by (used in) investing activities(2,030)2,446(7,718)1,261(8,325)
1,156(4,435)(5,049)4,224(2,153)(20,623)

(679)
1,598
(7,500)575(10,614)
1,546(3,516)(7,091)
5,188(3,665)(24,159)

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 minority interest 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(19,091)(10,000)
91,161(37,272)
19,892(10,121)(6,089)
(48)
―
(298)
28,132(23,470)―
30,854(32,958)―(10,021)(6,092)
(143)
(187)
(295)
(42,314)(0)
22,92634,855576
25
58,384(1,389)6,398
58,3842,460―
67,243

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, 2020

《Segment information》
Segment information by business category for the fiscal year 2018 and 2019, is as follows:(Amounts less than one million yen are rounded down)

Fiscal Year ended March 31, 2019

Millions of yen

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

Primary
Metal
Metal Recycling

1,037,297 296,437

10,676

7,421
1,047,974 303,858
17,393
5,817

Foods

Petroleum Overseas& chemicals

sales

subsidiaries

Subtotal

73,847 100,093 233,664 253,495 1,994,837
6,056
1,296 10,585 61,259 97,295
79,903 101,389 244,250 314,754 2,092,132
1,520
1,543
2,165
1,024 29,464

Other

Total

Adjustment

79,763 2,074,600― 2,074,600
2,751 100,046 (100,046)―
82,514 2,174,646 (100,046) 2,074,600
966 30,431(7,036) 23,395

Fiscal Year ended March 31, 2020

Millions of yen

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

Consolidated

Primary
Metal
Metal Recycling

994,269 255,660
11,134
4,195
1,005,403 259,855
14,628 (30,506)

Foods

Petroleum Overseas& chemicals

sales

subsidiaries

Subtotal

77,609 100,615 201,763 195,325 1,825,244
1,209
1,139
8,693 45,686 72,057
78,818 101,754 210,457 241,011 1,897,301
2,302
(144)
4,177
466
(9,076)

Other

Total

Adjustment

Consolidated

82,248 1,907,493― 1,907,493
2,755 74,812 (74,812)―
85,004 1,982,305 (74,812) 1,907,493
1,400(7,676) (4,921) (12,598)

Notes:
1. “Other” comprises businesses that are not included in reportable segments, such as lumber section and machinery section.
2. Adjustments for segment income include inter-segment elimination and Group costs that have not been distributed to reportable segments. 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 and comprehensive income.
4. Since the 1st Quarter of the fiscal year 2019, following the organizational change on April 1, 2019, Company reviewed the classification
method for business segments and changed the reportable segments from "Metals & alloys" and "Non-ferrous metals" to "Primary Metal"and "Metal Recycling".
Segment information of the previous fiscal year has been recomposed by the new classification method.

－6－

May 13, 2020

Highlights of Consolidated Financial Results for the FY2019(Japan GAAP)HANWA Co., Ltd.

Outline of Financial Results for the FY2019(Unit: billion yen, rounded down to 0.1 billions yen)・As for the fiscal year, net sales have decreased by 8% compared with the previous year, hence reached to 1,907.4billion yen, due to decrease of transaction
volume under weak demands in steel business and decline in commodity prices including non-ferrous metal, ferroalloy products and petroleum. Operating
profit declined 5% year on year, to 27.3 billion yen chiefly because profits decreased in the Primary Metal business, Steel business and Food business, andordinary income was a loss of 12.5 billion yen, due to impairment loss on investment in SAMANCOR which was recorded in non-operating expenses as
equity in losses of affiliates.Net income was a loss of 13.6 billion yen, due to impairment accounting on securities, including available-for-sale securities.
・We paid 75 yen as the interim dividend and plan to pay additional 25 yen as the year-end dividend.

Operating Results
Net sales

Year-on-year

FY2019FY2018

1,907.4

2,074.6

Gross profit
SG&A expenses

Change(167.1)Main Factors

rate

79.8

79.2

0.6

1%

52.4

50.3

2.1

4%

Net sales have decreased by 8% from the previous year. This was
mainly due to decrease of transaction volume under weak demands
in steel business and decline in commodity prices including nonferrous metal, ferroalloy products and petroleum.

Operating income

27.3

28.9

(1.5)

-5% (SG&A expenses)

Non-operating income

5.3

6.9

(1.6)

-24%

Non-operating expenses

45.2

12.4

32.7

263%

Ordinary income(12.5)

23.3(35.9)―

Extraordinary gain

1.2

0.4

0.7

189%

Extraordinary loss
Income before income
taxes and others

8.6

2.8

5.7

201%

(19.9)

20.9(40.9)―

Income taxes

5.5

Non-controlling interests(loss)

EPS (yen)

-22%

13.8

(39.3)―(13.6)(11.8)(336.51)

13.9
(0.8)
342.41(27.5)(11.7)(678.92)―――(33.4)―

Comprehensive
incomeSegment
Information(1.5)(25.5)Net income
Owners of the Company(loss)

7.1(29.9)

3.4

Net sales
FY2019FY2018FY2019FY2018

798.4

933.3

(134.8)-14%(Total Assets)

627.6
170.8

724.9
208.3

(97.3)(37.5)

-13%
-18%

632.3

730.8

(98.5)-13%

Total assets decreased by 14% from the end of the previous year,
due to decrease in trade receivables and investment securities.
Trade notes and accounts receivables 341.5 billion yen (-18% fromthe end of the previous period).Investment securities 56.8 billion yen(-44% from the end of the previous period).

331.1
263.8
*
161%/127%

363.2
303.9
*
161%/131%(32.1)(40.0)
0.2pt

-9%
-13%
-0%

166.0

202.4

(36.3)-18%

Shareholders' equity ratio

161.3
2.2
2.4
4,027.01
163.6
20.5/23.6*%

180.9
7.2
14.2
4,632.55
188.2
20.2/22.8*%(19.5)(5.0)(11.7)(605.55)(24.5)
0.3pt

-11%
-69%
-83%
-13%
-13%
2%

Cash Flow

FY2019FY2018

74.2

15.4

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

Net DER
Total net assets(Equity capital)

SG & A expenses have increased 2.1 billion yen from the previous
year. 1.5 out of 2.1 billion yen was accounted for newly
consolidated subsidiaries.
Our personnel expenses have increased 1.0 billion yen, including
0.5 billion yen from newly consolidated subsidiaries.

(Non-operating income/expenses)
Non-operating income has decreased 1.6 billion yen and Nonoperating expenses have increased 32.7 billion yen. The
breakdown of the main causes is as follows.
Dividends: increase of 0.4 billion yen(YoY)
Interest income: decrease of 2.0 billion yen(YoY)
Equity in losses of affiliates: increase of 35.3 billion yen(YoY)(34.9 billion yen(YoY) from SAMANCOR,
including impairment losses 27.3 billion yen）

(Extraordinary gain/loss)
Gain on sales of investment securities 0.9 billion yen : due to salesof listed stocks
Loss on devaluation of investments securities 6.5billion yen :mainly due to decline in listed stocks
Impairment loss 1.0billion yen : mainly due to impairment losses
on land and buildings held by consolidated subsidiaries(Valuation & translation
adjustments)(Minority interests)
BPS (yen)
Shareholders' equity

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

Main Factors

Steel

1,005.4

1,047.9

-4%

14.6

17.3

-16%

Primary Metal

259.8

303.8

-14%

(30.5)

5.8―

Metal Recycling

78.8

79.9

-1%

2.3

1.5

51%

Petroleum & chemicals

101.7
210.4

101.3
244.2

0%
-14%

(0.1)
4.1

1.5
2.1

―
93%

Overseas sales
subsidiaries

241.0

314.7

-23%

0.4

1.0

-54%

Total for reportablesegments

1,897.3

2,092.1

-9%

(9.0)

29.4

―

85.0

82.5

3%

1.4

0.9

45%

Other
Total

1,982.3

2,174.6

-9%

(7.6)

30.4

―

Adjustment(74.8)(100.0)

-25%

(4.9)

(7.0)

-30%

Consolidated

1,907.4

2,074.6-8%(12.5)

23.3―

・ Aug.

Topics・ Mar.

(Steel business)
Both net sales and volumes declined due to sluggish demand, andsegment income decreased mainly due to declining profit margins atdomestic subsidiaries in sluggish domestic steel market.
(Primary metals business)
Segment income was a loss mainly due to expansion of equity in losses
of affiliates for impairment losses in SAMANCOR.
(Metal recycling business)
Segment income increased due to improved profitability by procuring
low price in the downward phase of copper scrap prices and the
additional income from the newly consolidated subsidiary PT.
HANWA ROYAL METALS.
(Foods business)
Segment income was a loss mainly due to decline in market prices of
salmon, increase in valuation losses on inventories, and decrease inforeign exchange gains.
(Petroleum & chemicals business)
Despite decreased volume by weak market of petroleum products,
segment income increased mainly due to the expansion of profit
margins of bunker fuel oil and biomass fuels such as palm kernel
shells(PKS).
(Overseas sales subsidiaries)
Segment income decreased mainly due to decline transaction volumes
in the US and ASEAN region and increase local currency procurement
costs due to increase in local transactions in Indonesia.

Acquired 65% of the stocks of the SMC HA NOI ONE MEMBER CO.,LTD.(and changed name to HANWA SMC STEEL SERVICE HA NOICO., LTD.) We have published our first integrated report to replace our Annual Report.
Acquired 10% of the stocks of PT Dexin Steel Indonesia, a steel blast furnace mill, a joint venture established by Delong Steel Group.

(Liabilities)
Total liabilities decreased by 13% from the end of the previous year,
due to the decrease in trade payables and short-term loans. Asinterest-bearing debt decreased by 13%, net debt-equity ratio wasturned into 161%（*127%).

(Net assets)
Total net assets decreased by 18% from the end of the previous year,
due to decrease in retained earnings caused by recording net income
loss attributable to owners of the company and net unrealized holding
gains on securities.
Meanwhile shareholders' equity ratio was 20.5%(*23.6%), which is
0.3 percentage points higher than the end of the previous year.
*Reflecting equity credit attributes of the subordinated loan

Year-on-year
ChangeMain Factors

rate

58.8

382%

(20.6)(3.5)

17%(42.3)

28.1(70.4)

―

67.2

58.3

8.8

15%

(Operating cash flows)
Due to decrease in trade receivables and inventories.

(Investment cash flows)
Due to purchase of investment securities and tangible fixed assets.

(Financial cash flows)
Due to repayment of short-term loans and redemption of corporate
bonds.

1s t half

2,500【Quarterly Operating Results】

2nd half

2,000

1,907.4

1,791.1
1,069.6

Operating income

10

7.5

6.9

6.7

6.6

6.9

600

1,514.0

400
4

553.3

715.6

836.9

1,004.9

946.0

FY2016FY2017FY2018FY2019

516.3

472.4

200

473.5

484.2

477.2

2

0

0

1s t half

20.0

16.3

15.0
10.1

10.0
5.0

6.2

4Q

500

2Q

3Q

Interes t-bearing debt

4Q

Net DER

3

Reflecting subordinated loan

13.9

400

363.2

8.8

1.6

331.1
1.6

2

1.3

1.3

1

FY2018FY2019

325.5

7.3

8.5

2019/1Q【Changes in Interest-bearing Debt】

2nd half
17.3

02018/3Q【Changes in Net Income】
25.0

8
6

961.4

798.4

1,000

Net sales

800
8.1

2,074.6

954.1

rate

Main Factors

rate【Changes in Net Sales】

500

Foods

Change(24.1)

1,500

Segment income
rateMar. 2019(Interest-bearing debt)-8% (Net sales)

Comparison with Mar. 2019

Mar. 2020

Financial Position

6.5

300

259.6

200

1.4

1.5

5.1

0.0
-5.0

(18.8)

-10.0

100

-15.0
-20.0

0

(13.6)FY2016

Forecast(Annual)

FY2017FY2018FY2020*(estimated)

FY20190
FY2016FY2019changeFY2017

Cash Dividends

FY2018FY2019FY2020*(estimated)

Net sales―

1,907.4―

Interim (yen)

75.00

75.00

―

Operating income

―

27.3

―

Year-end (yen)

75.00

25.00

―

Ordinary income―(12.5)―

Annual (yen)150.00100.00―Net income attributableto owners of parent―(13.6)―

Dividend payout ratio

44%

―

―

* Forecasts for the FY2020 have not yet been determined given that it is difficult to reasonably estimate the impact of the novel coronavirus outbreak.