Financial Results for the Second Quarter ended September 30, 2012
(Consolidated financial results have been prepared in accordance with accounting principles generally accepted in Japan)

November 7, 2012
Company name:

HANWA Co.,Ltd.

Listed stock exchange: Tokyo, Osaka

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, Managing Executive Officer
TEL 81 - 3 - 3544 - 2197
November 14, 2012 The date of payout of dividend: December 5, 2012
(Rounded down to millions of yen)

１．Consolidated financial results for the second quarter ended September 30, 2012（％ of change from the same period of previous year）(1) Consolidated operating results
Net sales
For the second quarter
ended September 30, 2012
ended September 30, 2011

(Millions of yen)(％)

Operating income

Ordinary income(Millions of yen)

(Millions of yen)(％)

Net income(％)(Millions of yen)

4,206
735,573(3.6)
5,032(50.2)(58.4)
49.8
10,10937.4
17.8
762,648
10,109Note: Comprehensive income
For the second quarter ended September 30, 2012 (1,833) million yen
For the second quarter ended September 30, 2011 3,556 million yen
Net income
per share

For the first quarter
ended September 30, 2012
ended September 30, 2011

(％)

(87)
3,822

(2.8)
- ％
329.0 ％Net income
per share(diluted)

(yen)

(yen)

－－(0.42)18.44(2) Consolidated financial position
Total assets(Millions of yen)

538,217582,404

September 30, 2012
March 31, 2012

Note: Shareholders' equity

Shareholders'equity ratio

Net assets(Millions of yen)

113,077
115,956
As of September 30, 2012
As of March 31, 2012

Shareholders' equity
per share(％)

20.6
19.5
110,793 million yen
113,629 million yen(yen)534.55548.22

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

（effective date）
Year ended March 31, 2012
Year ending March 31, 2013
（estimated）

－－

6.00
4.00

Annual
(yen)

－

6.00

12.00

－

6.00

10.00

３．Forecast of consolidated financial results for fiscal year ending March 31, 2013 （％ of change from previous year）
Net sales

Operating incomeOrdinary income

Net income(Millions of yen) (％)(Millions of yen) (％)(Millions of yen) (％)(Millions of yen) (％)

Net income
per share(yen)(15.8)
18.82
Annual
1,486,000(5.0)
12,300(17.9)
10,600(19.2)
3,900* 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 Second Quarter ended September 30, 2012

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

Millions of yen
March 31, 2012

September 30, 2012 Increase(Decrease)

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

23,548301,035
110,908
33,423(934)
467,982

19,456
289,071
91,41929,690(855)
428,782(4,092)(11,964)(19,489)(3,733)
79(39,200)

30,48325,90356,387629

30,49025,70956,200628

7(194)(187)(1)

36,76522,987(2,347)57,405
114,422582,404

32,10822,925(2,427)52,605
109,434
538,217(4,657)(62)(80)(4,800)(4,988)(44,187)

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

186,81090,412
15,000
35
1,666
1,916
23,896
319,735

156,379
70,951
11,00010,000424
1,575
24,689275,020(30,431)(19,461)(4,000)9,965(1,242)(341)
793(44,715)

Long-term liabilities;
Bonds payable
Long-term loans payable
Employees' retirement benefits
OthersTotal long-term liabilities
Total liabilities

20,050116,738
191
9,732
146,712466,448

20,050120,267201
9,601
150,120
425,140―
3,529
10(131)
3,408(41,308)

45,651
4
69,978(1,425)
114,20945,651
4
68,887(1,425)
113,117――(1,091)―(1,092)

2,084
353
149
(3,168)(580)
2,326
115,956
582,404

1,189
(404)
149
(3,259)(2,324)2,283
113,077
538,217

(895)
(757)
―
(91)
(1,744)(43)(2,879)(44,187)

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
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets－２－HANWA co.,ltd.

Financial Results for the Second Quarter ended September 30, 2012

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

Millions of yen
Second quarter
ended
September 30,
2011

Second quarter
ended
September 30,
2012

Increase(Decrease)

Net sales
Cost of sales
Gross profit

762,648736,81125,837735,573
714,907
20,665(27,075)(21,904)(5,172)

Selling, general and administrative expensesOperating income

15,727
10,10915,633
5,032(94)(5,077)

Other income;Interest income
Dividend income
Foreign exchange gain
OthersTotal other income
Other expenses;
Interest expenses
OthersTotal other expenses
Ordinary income

401
263
850
619
2,134

402
286
125
481
1,296

123(725)
(138)
(838)

1,468
666
2,134
10,109

1,468
653
2,121
4,206

―(13)
(13)
(5,903)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―
3,307
3,307
6,802

255
4,102
4,358(151)

255
795
1,051
(6,953)

Income taxes
Income before minority interest
Minority interest in net income
Net income

2,859
3,942
120
3,822(54)
(97)
(10)
(87)

(2,913)(4,039)(130)(3,909)Minority interest in net income
Income before minority interest

120
3,942

(10)
(97)

(130)
(4,039)Other Comprehensive Income
Net unrealized holding gains on securities
Deferred hedge profit and loss
Foreign currency translation adjustments
Total other comprehensive Income
Comprehensive Income

(672)
630
(344)
(386)
3,556

(895)
(757)
(83)
(1,736)(1,833)(223)(1,387)261(1,350)(5,389)Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests

3,427
129

(1,831)(2)(5,258)(131)－３－

HANWA co.,ltd.

Financial Results for the Second Quarter ended September 30, 2012

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

Millions of yen
SecondSecondquarter ended quarter endedSeptember 30, September
2011
30, 2012

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

6,802
1,313―(289)(664)
1,4683,307(5,264)(5,396)
4,599(1,170)4,705
655(1,421)
(202)
3,736

(151)
1,575
255
(148)
(688)
1,468
4,102
16,011
21,296(32,150)
4,495
16,066646(1,488)(1,389)13,834(6,953)
262
255
141
(24)
―
―
21,275
26,692(36,749)
5,665
11,361(9)(67)(1,187)
10,098Cash 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(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

(86)
204
(3,873)141(2,175)20(433)(0)―24(6,178)

(267)
265
(2,765)26(1,041)
2,507(893)(1)
19(408)(2,557)(181)
61
1,108(115)
1,134
2,487(460)(1)
19(432)
3,621

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
Other, net
Net cash provided by (used in) financing activities(10,701)
―
2,500
(97)
9,955
(283)
(1,244)
(47)
(190)
(110)

(24,279)(4,000)
11,100(6,831)
9,955(35)(1,244)(40)(182)(15,557)(13,578)(4,000)8,600(6,734)―248―
78(15,447)(506)(3,058)20,586
1,440―
18,968(261)(4,541)
23,411420
28
19,317245(1,483)
2,825(1,020)28
349

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

Cash and cash equivalents at end of period－４－HANWA co.,ltd.

Financial Results for the Second Quarter ended September 30, 2012

《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 cementSegment information by business category for the second quarter ended September 30, 2011 and 2012, is as follows:(Rounded down to millions of yen)

Second quarter ended September 30, 2011

Millions of yen

Reportable segment

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

Subtotal

Steel

Metals Non-ferrous& alloys metals

Foods

356,387
10,212366,600
4,366

67,736612
68,3492,305

45,848 203,170 705,563
382
177 12,519
46,231 203,348 718,082
949
1,328 10,537

32,4191,134
33,553
1,587

Petroleum& chemicals

OtherTotal

57,085 762,648
19,959 32,479
77,044 795,127
1,422 11,960

Second quarter ended September 30, 2012

Adjustment― 762,648(32,479)―(32,479) 762,648(1,850) 10,109

Millions of yen

Reportable segment

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

Consolidated

Subtotal

Steel

Metals Non-ferrous& alloys metals

Foods

346,305
9,313
355,618
3,941

49,4081,213
50,622
1,248

45,782 201,368 674,746
326
2,868 14,619
46,109 204,236 689,366
401
319
6,300

31,882897
32,779389－５－Petroleum& chemicals

OtherTotal

60,827 735,573
21,849 36,469
82,676 772,043
673
6,974

Adjustment

Consolidated― 735,573(36,469)―(36,469) 735,573(2,767)
4,206