FY2023 Financial Results Report
Marubeni-Itochu Steel Inc.
May 8, 2024

FY2023 Financial Results Summary
 Sluggish demand for steel, reflecting the global rise in commodity prices and interest rates, as well as the delayed
recovery of the Chinese economy.
 The MISI North American construction materials business and other sectors performed relatively well despite
continued weakness in the energy-use steel pipe market, with the decline in profits limited to 16 percent.

Consolidated net
incomePL rate ¥/US$Total assets

Overpreviousfiscal year

FY2022

FY2023¥95.5 billion¥80.3 billion- ¥15.2 billion

135.47144.62+9.15¥ 1.77 trillion¥ 1.88 trillion+ ¥0.11 trillion

ROA

5.8%

4.4%

-1.4ptRatio ofshareholders’ equity

27.2%

30.0%

+2.8ptNet debt equity ratio(DER)

1.28 times

1.14 times-0.14 times

133.53151.41+17.88BS rate ¥/US$Factors affecting
financial results

ImpactFirm demand for the U.S.
construction materials business
Decline in OCTG and Linepipe
marketDownward pressure on demand
due to monetary tightening
Worsened steel market priceconditions accompanying China’seconomic slowdown
Automobile production recovery
Copyright © 2024 Marubeni-Itochu Steel Inc.

2Profit and Loss Statement(Unaudited, IFRS basis)

Operating Results(Unit: Millions of yen)
FY2023 Results FY2022 Results

ChangeRevenue
An approximately 1 percent increase resulting from the effects of theyen’s depreciation and other factors.
Operating income
An approximately 7 percent decline caused by higher labor expenses
and rising miscellaneous costs related to inflation.

Revenue

3,742,360

3,693,927+48,433

Gross profit

267,726

259,780+7,946

Selling, general and administrative expenses

Provision for doubtful accounts(128,973)(1,332)(112,373)
327-16,600-1,659Operating income (*1)

137,421

147,734-10,313

Net interest expenses
Dividend income
Gain (loss) on investments(27,279)
2,321
148
589
2,057

(17,719)
2,161
(947)
(146)
(3,636)-9,560+160+1,095+735+5,693

5,451

12,771-7,320Comprehensive Income

Profit before tax

120,708

140,218-19,510

Income taxes(28,472)(32,228)+3,75692,236

107,990-15,754

80,276
11,96095,522
12,468-15,246-508

ProfitNet unrealized gain (loss) on FVTOCI
Exchange differences on translating
foreign operations
Other
Comprehensive income

Gain (loss) on property, plant and equipment

Other non-operating income (loss)
Share of profits (losses) of associates andjoint ventures

ProfitProfit attributable to owners of the parent
Profit attributable to non-controlling interests*1

Operating income is presented in accordance with Japanese accounting practices for the convenience of investors andis not required by the IFRS. Ordinary income reflecting the Japanese GAAP standard has been provisionally calculatedat ¥118.8 billion.

Net interest expenses
These worsened due to rising interest rates on the dollar.
Share of profits (losses) of associates and joint ventures
A decline of approximately 57 percent linked to lower profitability in theNorth American steel pipe business, the conversion of the Canadiansteel pipe sales company to subsidiary status, and other factors.

Comprehensive income attributable toowners of the parent
Comprehensive income attributable tonon-controlling interests

FY2023Results(Unit: Millions of yen)

FY2022
Results

Change92,236
13,904

107,9903,770-15,754+10,134

35,706

19,971+15,735

2,468
144,3143,141
134,872-673+9,442

131,535

122,126+9,40912,77912,746+33

Copyright © 2024 Marubeni-Itochu Steel Inc.

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Balance Sheet(Unaudited, IFRS basis)(Unit: Millions of yen)
End of FY2023
Results

End of FY2022
Results

Current assets
Cash and cash equivalents
Trade receivables
Inventories
OtherNon-current assets
Property, plant and equipment
Intangible assets
Investments and other assets

1,545,313
60,973880,061
533,633
70,646
333,990
114,565
34,362
185,063

1,464,550
55,949828,371
511,88468,346
300,823
108,373
29,981
162,469+80,763+5,024+51,690+21,749+2,300+33,167+6,192+4,381+22,594

Total assets

1,879,303

1,765,373+113,930

Current liabilities
Trade payables
Short-term debts
Other
Non-current liabilities
Long-term debts
Other

1,094,469
440,578
558,894
94,997
186,985
142,304
44,681

1,061,432
454,160
519,571
87,701
187,562
149,623
37,939+33,037-13,582+39,323+7,296-577-7,319+6,742

Total liabilities

1,281,454

1,248,994+32,460

Non-controlling interests

563,227
50,078376,744
136,405
34,622479,529
50,154
343,723
85,65236,850+83,698-76+33,021+50,753-2,228

Total equity

597,849

516,379

1,879,303

1,765,373

Financial position

Equity attributable to owners of the parent

Capital/Capital surplus
Retained earnings
Accumulated other comprehensive income

Total liabilities and equity

ChangeFY2023Results

Management Indicators

FY2022
Results

ChangeRatio of shareholders’ equity (*2)

30.0%

27.2%

+2.8ptNet debt equity ratio (DER) (*3)

1.14 times

1.28 times-0.14 times

4.4%

5.8%

-1.4ptReturn on Assets (ROA)*2: Ratio of shareholders’ equity = equity attributable to owners of the parent/totalassets*3: Net DER = net interest-bearing liabilities/equity attributable to owners of the parent

Total assets¥1,879.3 billion (+¥113.9 billion from the end of FY2022)→ Increase in trade receivables and inventories, and a rise in investments
and other assets reflecting the yen’s depreciation and strong stock prices.
Summary of Group Companies
No. of Companies
End ofFY2023

Breakdown by Companies in the Blackand in the Red

Number of
Number of Percentage ofChangeGroupGroupGroup
from end ofcompanies in companies in companies inFY2022
the black
the redthe black

Domestic

20-2

19195.0%

Overseas50-1

47394.0%

70-3

66

494.3%

Domestic

14-1

13

192.9%

Overseas19-2

16384.2%+81,470

No. of associates andjoint ventures

33-3

29

487.9%+113,930

Total

103-6

95

892.2%

No. of subsidiaries

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