Financial Results for the First Quarter ended June 30, 2009
(Consolidated financial results have been prepared in accordance with accounting principles generally accepted in Japan)

August 4, 2009
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
August 14, 2009
(Rounded down to millions of yen)

１．Consolidated financial results for the first quarter ended June 30, 2009
(1) Consolidated operating results（％ of change from the same period of previous year）
Net sales
For the first quarter
ended June 30, 2009
ended June 30, 2008

Operating income

Ordinary income

Net income(Millions of yen)(％)

(Millions of yen)(％)

(Millions of yen)(％)

252,435
438,664(42.5)
15.7

2,815
12,117(76.8)
71.5

1,974
11,227(82.4)
66.2

Net income
per share
For the first quarter
ended June 30, 2009
ended June 30, 2008

(Millions of yen)906
6,429(％)(85.9)
43.4

Net incomeper share(diluted)

(yen)

(yen)

4.33
30.42

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

450,146479,379

June 30, 2009
March 31, 2009

Note: Shareholders' equity

Shareholders'equity ratio

Net assets(Millions of yen)

100,545
94,912As of June 30, 2009
As of March 31, 2009

Shareholders' equity
per share(％)

22.1
19.7
99,792 million yen
94,197 million yen(yen)

476.79450.05

２．Cash dividends（effective date）
Year ended March 31, 2009
Year ending March 31, 2010
（estimated）

Cash dividends per share
Second quarter
Third quarter
First quarter
Year-end(yen)(yen)(yen)
(yen)
6.00
－
6.00
－－

6.00

－

6.00

Annual(yen)
12.00
12.00

３．Forecast of consolidated financial results for fiscal year ending March 31, 2010 （％ 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)Interim537,000(41.1)
5,900(70.2)
4,500(76.7)
2,700(73.6)
12.90
Annual
1,106,000(28.1)
14,800(15.2)
12,000(20.0)
7,200
20.1
34.40
* 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, 2009

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

Millions of yen
March 31, 2009

June 30, 2009

Increase(Decrease)

AssetsCurrent assets;
Cash and deposits
Trade notes and accounts receivable
InventoriesOthers
Allowance for doubtful receivablesTotal current assets

35,200233,282
90,76527,085(781)
385,552

31,126208,698
83,61625,002(623)
347,820(4,074)(24,584)(7,149)(2,083)
158(37,732)

27,966
18,44046,407733

28,176
19,77747,953
797

210
1,337
1,546
64

28,022
21,849(3,186)
46,686
93,826479,379

35,475
21,577(3,476)53,576102,326
450,146

7,453
(272)
(290)
6,890
8,500
(29,233)

Current liabilities;
Trade notes and accounts payable
Short-term loans payable
Commercial paper
Current portion of bonds payableIncome taxes payable
Accrued bonuses
OthersTotal current liabilities

130,720
89,362
―
―
189
1,789
30,426
252,487

122,196
54,184
1,000
―
1,214
912
35,175
214,682(8,524)(35,178)
1,000
―
1,025
(877)
4,749
(37,805)

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

10,000115,15025
6,802
131,978
384,466

10,000115,73928
9,150
134,918
349,601

―
589
3
2,348
2,940
(34,865)

45,651
4
54,650(755)
99,55045,651
4
54,884(756)
99,783

―
―234
(1)
233

(3,213)(248)(180)(1,710)(5,353)715
94,912
479,379

2,056
(52)
(180)
(1,814)9752
100,545
450,146

5,269
196
―
(104)
5,362
37
5,633
(29,233)

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 stockCapital 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 First Quarter ended June 30, 2009

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

Millions of yen
First quarter ended First quarter ended
Increase(Decrease)June 30, 2008
June 30, 2009
Net sales
Cost of sales
Gross profit

438,664
419,101
19,562

252,435
242,527
9,907(186,229)(176,574)(9,655)

Selling, general and administrative expenses
Operating income

7,445
12,117

7,091
2,815

(354)
(9,302)Other income;Interest income
Dividend income
OthersTotal other income
Other expenses;
Interest expenses
OthersTotal other expenses
Ordinary income

274
475
142
892

133
273
204
610

(141)
(202)
62
(282)

1,174
608
1,783
11,227

913
539
1,452
1,974

(261)
(69)
(331)
(9,253)

Income before income taxes and minority interest

11,227

1,974(9,253)

Income taxes
Minority interest in net income
Net income

4,823
△ 25
6,429

1,084
△ 16906(3,739)
9(5,523)－３－HANWA co.,ltd.

Financial Results for the First Quarter ended June 30, 2009

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

Millions of yen
First quarter First quarter
endedended
June 30, 2008 June 30, 2009

Increase(Decrease)

Cash flows from operating activities:
Income before income taxes
Depreciation and amortization
Increase(decrease) in allowance for doubtful receivables
Interest and dividend income
Interest expense(Increase)decrease in trade receivables(Increase)decrease in inventories
Increase(decrease) in trade notes and accounts payable
Increase(decrease) in deposits received
Other, net
Sub totalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities

11,227
527
66
(749)
1,174
(48,690)(8,044)
22,669(770)
2,415(20,176)707(882)(4,883)(25,235)

1,974
622
143(406)913
20,21912,251(8,700)3,703
2,175
32,896
419
(783)
(17)
32,514(9,253)
95
77
343
(261)
68,90920,295(31,369)
4,473
(240)
53,072
(288)
99
4,866
57,749Cash 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 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

(212)
―
(914)
308
(12,767)
2,060
96
(10)
28
221
(11,189)

(162)
143
(786)
26(1)
157
(149)
(3)
20(67)
(822)

50
143
128(282)
12,766(1,903)
(245)
7(8)
(288)
10,367

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
Payment for cash dividends
Other, net
Net cash provided by (used in) financing activities

27,43013,000―(3,012)(959)(9)36,448(36,661)
1,000
562―(976)(29)(36,104)(64,091)(12,000)
562
3,012
(17)
(20)
(72,552)

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

46
69
14,178―14,248176(4,236)35,046142
30,952130(4,305)
20,868142
16,704－４－HANWA co.,ltd.

Financial Results for the First Quarter ended June 30, 2009《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
Other business: Lumber, machinery, and others
Segment information by business category for the first quarter ended June 30, 2008 and 2009, is as follows:(Rounded down to millions of yen)

Millions of yen

First quarter ended June 30, 2008
Net sales
Operating income

Steel
237,808
8,103

Petroleum Other
Metals Non-ferrous& alloys metals Foods & chemicals business

53,7592,580

18,923476

91,716873

Total Corporate Consolidated
13,631 438,664― 438,664
785 13,545 (1,427) 12,117

Millions of yen

First quarter ended June 30, 2009
Net sales
Operating income

22,825724

Steel
145,910
2,542

Petroleum OtherMetals Non-ferrous& alloys metals Foods & chemicals business

19,692649

8,889
186－５－

17,683407

Total Corporate Consolidated
48,464 11,795 252,435― 252,435(405)858
4,239 (1,423) 2,815