Financial Results for the First Quarter ended June 30, 2016
(Consolidated financial results have been prepared in accordance with accounting principles generally accepted in Japan)

August 10, 2016
Company name:

HANWA Co., Ltd.

Listed stock exchange: Tokyo

Stock exchange code:

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

Representative:
Enquiries:

Hironari Furukawa
Yoichi Nakagawa

The date of issue of audited financial statements:

President
Director, Managing Executive Officer
TEL 81 - 3 - 3544 - 2000
August 12, 2016
(Rounded down to millions of yen)

１．Consolidated financial results for the first quarter ended June 30, 2016
(1) Consolidated operating results（％ of change from the same period of previous year）
Net sales
For the first quarter
ended June 30, 2016
ended June 30, 2015

(Millions of yen)(％)

Operating income

Ordinary income(Millions of yen)

(Millions of yen)(％)

350,562(11.9)
4,951
4.0
398,045
(6.0)
4,759
17.9
Note: Comprehensive income
For the first quarter ended June 30, 2016
For the first quarter ended June 30, 2015
Net income
per share

For the first quarter
ended June 30, 2016
ended June 30, 2015

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

(％)

2,805
2,948
-%
17.9%

(4.9)
45.4

4,791
23.0
3,894
3.0(541) million yen
3,589 million yen

Net income
per share(diluted)

(yen)

(yen)

13.57
14.23

－－

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

600,751599,694

June 30, 2016
March 31, 2016

Note: Shareholders' equity

Shareholders'equity ratio

Net assets(Millions of yen)

152,155
156,139
As of June 30, 2016
As of March 31, 2016

Shareholders' equity
per share(％)

25.1
25.8
150,954 million yen
154,866 million yen(yen)742.86747.40２．Cash dividends
Cash dividends per shareFirst quarter
Second quarter
Third quarter
Year-end(yen)
(yen)
(yen)
(yen)

（effective date）
Year ended March 31, 2016
Year ending March 31, 2017
（estimated）－－

Annual
(yen)

8.00

－

10.00

18.00

9.00

－

9.00

18.00

３．Forecast of consolidated financial results for fiscal year ending March 31, 2017 （％ of change from previous year）
Net sales

Operating income(Millions of yen) (％)(Millions of yen) (％)

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

Ordinary income

Net income
per share(yen)Annual
1,600,000
5.8
21,00015.5
19,00023.2
13,000(49.0)
62.74* 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 First Quarter ended June 30, 2016

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

Millions of yen
March 31, 2016

June 30, 2016

Increase(Decrease)

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

27,115
260,151
16,141106,050
42,081(287)
451,253

36,463
261,372
19,591
98,623
43,683(265)
459,469

9,348
1,221
3,450
(7,427)
1,602
22
8,216

30,144
31,41861,563
1,955

30,13330,52360,656
2,043

(11)
(895)
(907)
88

58,671
26,735(485)
84,921
148,440
599,694

56,052
23,008(478)
78,582
141,282
600,751(2,619)(3,727)
7(6,339)(7,158)
1,057

Current liabilities;
Trade notes and accounts payable
Short-term loans payable
Current portion of bonds payable
Income taxes payable
Accrued bonuses
Provision for loss on business of subsidiaries and affiliates
OthersTotal current liabilities

149,857
66,734
10,039
326
2,192
512
39,742
269,405

150,901
72,74910,021
453
1,229
512
40,086
275,953

1,044
6,015
(18)
127(963)
―344
6,548

Long-term liabilities;
Bonds payable
Long-term loans payable
Retirement benefits liabilities
OthersTotal long-term liabilities
Total liabilities

30,097
129,420
4,075
10,555
174,149
443,555

30,097
128,948
4,047
9,548
172,642448,596

―
(472)
(28)
(1,007)(1,507)
5,041

45,651
4
104,600(1,449)148,80745,651
4
106,258(3,714)
148,200――
1,658(2,265)
(607)

8,024
(376)
2,966
1,842
(6,397)
6,059
1,272
156,139599,694

5,153
(417)
2,966
1,256
(6,203)2,754
1,200
152,155
600,751(2,871)
(41)
―
(586)
194
(3,305)(72)(3,984)
1,057

Fixed assets;
Property and equipment;
LandOthers
Total 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 adjustmentsRemeasurements 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 First Quarter ended June 30, 2016

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

Millions of yen

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Other income;Interest income
Dividend income
Revenue from investment in affiliates
OthersTotal other income
Other expenses;
Interest expenses
Loss on investment in affiliates
Foreign exchange loss
OthersTotal other expenses
Ordinary income

First quarter
ended
June 30, 2015

First quarter
ended
June 30, 2016

Increase(Decrease)398,045
383,811
14,233

350,562
335,588
14,974(47,483)(48,223)
741

9,474
4,759

10,023
4,951

549
192

205
419
―
880
1,505

268
473
18
374
1,135

63
54
18(506)
(370)

696
1,245
124
303
2,370
3,894

652
―
374
268
1,295
4,791

(44)
(1,245)250(35)(1,075)897

Extraordinary income
Gain on sale of property and equipment
Total extraordinary income
Extraordinary loss;
Loss on devaluation of investments securities
Total extraordinary loss
Income before income taxes and minority interest

350
350

―
―

(350)
(350)

150
150
4,094

―
―
4,791

(150)
(150)
697

Income taxes
Net income

1,155
2,939

1,966
2,824

811
(115)

Net income attributable to
Net income attributable to owners of the Company
Net income(loss) attributable to minority interests

2,948
(9)

2,805
18(143)
27

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 affiliates
Total other comprehensive Income
Comprehensive Income983
(896)
263
164
135
650
3,589

(2,871)
(40)
(579)
194
(68)
(3,365)(541)(3,854)
856
(842)
30
(203)
(4,015)(4,130)Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests

3,566
22(499)(42)(4,065)(64)－３－HANWA co., ltd.

Financial Results for the First Quarter ended June 30, 2016

《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
Overseas sales subsidiaries： Wholesale trade, general merchandise
Segment information by business category for the first quarter ended June 30, 2015 and 2016, is as follows:(Rounded down to millions of yen)First quarter ended June 30, 2015

Millions of yen

Reportable segment

Net sales
Customers
Inter-segment
TotalSegment income(loss)

SteelMetals Non-ferrous
Foods& alloys metals

195,1425,024
200,166
2,859

36,756
1,006
37,763684

23,681
268
23,950395

Petroleum Overseas

sales& chemicals subsidiarie

24,825104
24,93070

78,433
1,484
79,917382

Subtotal

25,388 384,227
24,365 32,254
49,753 416,482
23
4,416

OtherTotal

13,817 398,045
347 32,602
14,165 430,647
480
4,897

Adjustment― 398,045(32,602)―(32,602) 398,045(1,002)
3,894First quarter ended June 30, 2016

Millions of yen

Reportable segment

Net sales
Customers
Inter-segment
TotalSegment income(loss)

Consolidated

SteelMetals Non-ferrous
Foods& alloys metals

175,599
4,171
179,771
4,300

30,242816
31,059158

18,434364
18,798422

Petroleum Overseas

sales& chemicals subsidiarie

21,849112
21,962439

57,312
1,644
58,956379

Subtotal

25,645 329,083
16,385 23,496
42,031 352,579
163
5,864

Other

Total

21,478 350,562
541 24,038
22,020 374,600
432
6,296

Adjustment

Consolidated― 350,562(24,038)―(24,038) 350,562(1,505)
4,791

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 intersegment elimination and Group costs that have not been distributed to reportablesegments. 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－