Financial Results for the Third Quarter ended December 31, 2010
(Consolidated financial results have been prepared in accordance with accounting principles generally accepted in Japan)

February 9, 2011
Company name:

HANWA Co.,Ltd.

Listed stock exchange: Tokyo, Osaka

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

Representative:
Enquiries:

Shuji Kita
Tetsuro Akimoto

The date of issue of audited financial statements:

President
Senior Managing Director of Accounting Dept.
TEL 81 - 3 - 3544 - 2190
February 14, 2011
The date of payout of dividend: December 3, 2010１．Consolidated financial results for the third quarter ended December 31, 2010
(Rounded down to millions of yen)（％ of change from the same period of previous year）(1) Consolidated operating results
Net sales
For the third quarter
ended December 31, 2010
ended December 31, 2009

(Millions of yen)(％)

1,012,477
825,94622.6(35.1)Net income
per share
For the third quarter
ended December 31, 2010
ended December 31, 2009

Operating income

Ordinary income(Millions of yen)

(Millions of yen)

9,213
8,194

(％)

12.4
(63.1)

9,941
6,510

Net income(％)(Millions of yen)

(％)

52.7
(71.5)

5,392
10,707(49.6)
160.1

Net income
per share(diluted)

(yen)

(yen)

26.01
51.16

－－(2) Consolidated financial position
Net assets

Shareholders'equity ratio

106,706
106,855
As of December 31, 2010
As of March 31, 2010

20.1
24.0
106,019 million yen
106,168 million yen

Total assets
527,347
443,444

December 31, 2010
March 31, 2010

Note: Shareholders' equity

Shareholders' equity
per share
511.48512.16

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

（effective date）
Year ended March 31, 2010
Year ending March 31, 2011
（estimated）

－－

6.00
6.00

Annual
(yen)

－

6.00

12.00

－

6.00

12.00

３．Forecast of consolidated financial results for fiscal year ending March 31, 2011 （％ 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)Annual1,333,000
19.4
13,00013.8
12,00027.5
6,800(41.3)
32.80* 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 Third Quarter ended December 31, 2010

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

Millions of yen
March 31, 2010

December 31, 2010 Increase(Decrease)

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

24,669214,416
72,352
22,620(892)
333,166

23,692276,218
91,49630,870(1,146)421,131(977)
61,802
19,1448,250(254)
87,96528,29318,00546,299753

29,252
17,19346,445
646

959
(812)
146
(107)

40,401
25,798(2,974)
63,225110,278
443,444

38,43323,255(2,565)59,123106,215
527,347(1,968)(2,543)409(4,102)(4,063)
83,903Current 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

134,800
49,7251,000
10,000233
1,855
17,475215,089

172,276
70,572
15,000460
512982
21,129280,933

37,476
20,847
14,000(9,540)
279
(873)
3,654
65,844Long-term liabilities;
Bonds payable
Long-term loans payable
Employees' retirement benefits
Directors' retirement benefits
OthersTotal long-term liabilities
Total liabilities―
114,355
18―
7,125
121,499
336,589

10,000121,641
119
41
7,904
139,707420,640

10,000
7,286
101
41
779
18,20884,05145,651
4
64,301(1,415)
108,54245,651
467,206(1,420)111,442

――
2,905
(5)
2,900

889
(771)
(183)
(2,308)(2,373)686
106,855
443,444(2,372)(120)(183)(2,747)(5,423)687
106,706
527,347(3,261)651―(439)(3,050)1(149)
83,903Fixed 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
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 Third Quarter ended December 31, 2010

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

Millions of yen
Third quarter endedDecember 31, 2009

Third quarter
ended
Increase(Decrease)
December 31, 2010

Net sales
Cost of sales
Gross profit

825,946795,987
29,9591,012,477
981,022
31,454

186,531
185,035
1,495

Selling, general and administrative expenses
Operating income

21,764
8,194

22,241
9,213

477
1,019

390
442
1,077
434
2,344

502
327
1,878
1,256
3,964

112
(115)
801
822
1,620

2,493
1,536
4,029
6,510

2,089
1,146
3,236
9,941

(404)
(390)
(793)
3,431

3,055
―
3,055
3,454

429
337
767
9,174

(2,626)337(2,288)5,720△ 7,211―△ 42
10,707

3,724
5,449
56
5,392

10,935―98(5,315)

Non-operating income;Interest income
Dividend income
Foreign exchange gain
OthersTotal non-operating income
Non-operating expenses;
Interest expenses
OthersTotal non-operating expenses
Ordinary income
Extraordinary loss;
Loss on impairment of long-lived assets
Loss on devaluation of investments securities
Total extraordinary loss
Income before income taxes and minority interest
Income taxes
Income before minority interest
Minority interest in net income
Net income－３－HANWA co.,ltd.

Financial Results for the Third Quarter ended December 31, 2010

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

Millions of yen
Third quarter Third quarter
ended
ended
December 31, December 31,2009
2010

Increase(Decrease)

Cash flows from operating activities:
Income before income taxes
Depreciation and amortization
Loss on impairment of long-lived assets
Increase(decrease) in allowance for doubtful receivables
Interest and dividend income
Interest expense
Loss on devaluation of investments securities(Increase)decrease in trade receivables(Increase)decrease in inventories
Increase(decrease) in trade notes and accounts payable
Other, net
Sub totalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities

3,454
1,881
3,055
349
(832)
2,493
―
8,708
25,5372,921(2,417)45,151789(2,395)(1,696)
41,849

9,174
1,991
429
(170)
(829)
2,089
337
(57,470)(18,933)
34,844(1,678)(30,215)792(1,952)
2,008(29,366)

5,720
110(2,626)(519)
3(404)
337(66,178)(44,470)
31,923739(75,366)
3443
3,704(71,215)

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 and redemption 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(292)292(2,498)54(6,121)
186―(1,062)(9)50(521)(9,922)(251)277(1,885)25(3,030)
145
1,283(1,024)―
81(1,170)(5,547)41(15)
613
(29)
3,091
(41)
1,283
38
9
31(649)4,375

Cash flows from financing activities:
Increase(decrease) in short-term loans, netIncrease(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(33,093)
1,000
573(6,200)――(2,493)(4)(749)(40,967)

41,74914,0006,120(24,288)
9,954(10,000)(2,476)(4)(175)
34,87974,842
13,0005,547(18,088)
9,954(10,000)
17―574
75,846

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 from newly consolidated subsidiaries
Cash and cash equivalents at end of period(284)(9,325)35,046142
25,864(902)(937)
24,514―
23,577(618)
8,388(10,532)(142)(2,287)－４－HANWA co.,ltd.

Financial Results for the Third Quarter ended December 31, 2010

《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 third quarter ended December 31, 2009 and 2010, is as follows:(Rounded down to millions of yen)

Third quarter ended December 31, 2009

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

SteelMetals Non-ferrous& alloys metals

OtherFoods& chemicals business

456,789―456,789
6,878

63,296―
63,296
1,668

56,623 181,142――
56,623 181,142
1,236
1,100

35,606―35,606309

PetroleumTotal

32,489 825,946――
32,489 825,946
1,250 12,444

Millions of yen
ConsoliCorporate
dated― 825,946(―)―― 825,946(4,249)
8,194

Third quarter ended December 31, 2010

Millions of yen

Reportable segment

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

Subtotal

Steel

Metals Non-ferrous& alloys metals

Foods

494,856
14,398509,255
6,536

89,358
1,658
91,017
2,264

63,517 252,232 942,150
432
405 17,963
63,949 252,638 960,114
1,618
1,164 11,897

42,185
1,067
43,253
313

Petroleum& chemicals

OtherTotal

70,326 1,012,477
23,080 41,043
93,406 1,053,520
672 12,569

Adjustment

Consolidated― 1,012,477(41,043)―(41,043) 1,012,477(2,628)9,941* From the FY2010, the Group applied the “Accounting Standard for Disclosures about Segments of an Enterprise andRelated Information” (ASBJ Statement No.17, March 27, 2009) . Thus segment information in FY2009 and FY2010 was
not connected.

－５－