Financial Results for the First Quarter ended June 30, 2017
(Consolidated financial results have been prepared in accordance with accounting principles generally accepted in Japan)

August 10, 2017
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, Senior Managing Executive Officer
TEL 81 - 3 - 3544 - 2000
August 14, 2017
(Rounded down to millions of yen)

１．Consolidated financial results for the first quarter ended June 30, 2017
(1) Consolidated operating results（％ of change from the same period of previous year）
Net sales
For the first quarter
ended June 30, 2017
ended June 30, 2016

(Millions of yen)(％)

Operating income

Ordinary income(Millions of yen)

(Millions of yen)(％)

408,378
16.5
5,284
6.7
350,562(11.9)
4,951
4.0
Note: Comprehensive income
For the first quarter ended June 30, 2017
For the first quarter ended June 30, 2016
Net income
per share

For the first quarter
ended June 30, 2017
ended June 30, 2016

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

(％)

4,433
2,805
-%
-%

58.0
(4.9)

6,619
38.2
4,791
23.0
3,786 million yen(541) million yen

Net income
per share(diluted)

(yen)

(yen)

21.82
13.57

－－

(2) Consolidated financial position
Total assets(Millions of yen)752,567
694,232

June 30, 2017
March 31, 2017

Note: Shareholders' equity

Shareholders'equity ratio

Net assets(Millions of yen)

186,958
171,637
As of June 30, 2017
As of March 31, 2017

Shareholders' equity
per share(％)

(yen)

22.9
24.5
172,142 million yen
170,422 million yen

847.17838.70２．Cash dividends
First quarter（effective date）

Cash dividends per share
Second quarter
Third quarter(yen)Year ended March 31, 2017
Year ending March 31, 2018
（estimated）

－－

(yen)

Year-end(yen)

Annual(yen)

(yen)

9.00

－

10.00

19.00

10.00

－

50.00

－

* HANWA is scheduled to conduct a share consolidation in which every five common shares will be consolidated into one
share with October 1, 2017, as the effective date. Consequently, the impact of this share consolidation is taken intoconsideration in the amount presented for the fiscal year-end dividend per share for the year ending March 31, 2018(estimated), and the amount for the total annual dividends per share for the same fiscal year is omitted and shown as adash. In the case of not taking the share consolidation into consideration, the fiscal year-end dividend per share for theyear ending March 31, 2018 (estimated) would be 10.00 yen and the annual dividends per share for the same fiscal year
would be 20.00 yen.

３．Forecast of consolidated financial results for fiscal year ending March 31, 2018 （％ 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
1,700,000
12.3
25,5008.9
24,0004.8
16,000(2.2)
391.98The impact of a share consolidation is taken into consideration in the amount presented for earnings per share in theforecast of consolidated financial results for the year ending March 31, 2018. In the case of not taking the shareconsolidation into consideration, net income per share for the year ending March 31, 2018 (Forecast) would be 78.40
yen.

* 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, 2017

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

Millions of yen
March 31, 2017

June 30, 2017

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

28,465
307,853
30,742486
111,039
59,519(334)
537,773

38,925
308,449
33,615396
110,618
59,972(344)
551,633

29,64029,85259,492
2,034

31,97031,381
63,352
2,963

72,52422,912(504)
94,932
156,458
694,232

98,83736,279(499)
134,617200,933
752,567

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

191,989
107,262
5,000
21
6,752
2,306
146
512
45,068359,058

197,321110,677
20,00010,021
2,500
1,321
134
310
57,265399,553

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

40,076106,232
4,518
12,709163,536
522,595

40,176108,236
4,554
13,088166,056
565,60945,651
117,778(3,720)159,70945,651
120,142(3,721)
162,071

12,580
142
2,966
1,062
(6,037)
10,713
1,214
171,637
694,232

12,312
(10)
2,966
654
(5,851)
10,071
14,815
186,958
752,567

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
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 First Quarter ended June 30, 2017

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

Millions of yen
First quarter ended
June 30, 2016

First quarter ended
June 30, 2017

Net sales
Cost of sales
Gross profit

350,562
335,588
14,974

408,378
391,771
16,607

Selling, general and administrative expenses
Operating income

10,023
4,951

11,323
5,284

268
473
18
―
374
1,135

405
769
236
460
680
2,552

652
374
268
1,295
4,791

865
―
352
1,217
6,619

Extraordinary income
Reversal of allowance for business loss of affiliates
Total extraordinary income
Income before income taxes and minority interest

―
―
4,791

201
201
6,820

Income taxes
Net income

1,966
2,824

2,361
4,459

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

2,805
18

4,433
26

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 Income(2,871)
(40)
(579)
194
(68)
(3,365)
(541)

(267)
(152)
(426)
186
(11)
(672)
3,786

(499)
(42)

3,791
(4)

Other income;Interest incomeDividend income
Revenue from investment in affiliates
Foreign exchange gain
OthersTotal other income
Other expenses;
Interest expenses
Foreign exchange loss
OthersTotal other expenses
Ordinary income

Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests－３－

HANWA co., ltd.

Financial Results for the First Quarter ended June 30, 2017

《Segment information》
Segment information by business category for the first quarter ended June 30, 2016 and 2017, is as follows:(Rounded down to millions of yen)First quarter ended June 30, 2016

Millions of yen

Reportable segment

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

Steel

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

First quarter ended June 30, 2017

Millions of yen

Reportable segment

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

Consolidated

SteelMetals Non-ferrous
Foods& alloys metals

207,180
2,730
209,910
4,925

42,571980
43,551
1,114

23,318358
23,676466

Petroleum Overseas

sales& chemicals subsidiarie

25,542
84
25,627495

52,876
1,427
54,304
596

Subtotal

40,489 391,977
10,797 16,378
51,286 408,356
(10)
7,588

OtherTotal

16,400 408,378
270 16,649
16,671 425,027
51
7,639Adjustment

Consolidated― 408,378(16,649)―(16,649) 408,378(1,020)6,619

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 comprehensiveincome.

－４－