May 12, 2020

Summary of the Consolidated Financial Results
for the Fiscal Year Ended March 31, 2020 (FY3/20)[Japanese GAAP]
Company name:

Yodogawa Steel Works, Ltd.
Stock exchange listed: Tokyo, 1st Section
Stock code:
5451
URL: https://www.yodoko.co.jp/
Representative:
Satoshi Nitta, President and Representative Director
Inquiries:
Yasunori Osumi, Senior Executive Officer, General Manager of IR Department
Tel: +(81)6-6245-1113
Scheduled date of Annual General Meeting of Shareholders:June 23, 2020
Scheduled date of payment of dividend:
June 24, 2020
Scheduled date of filing of Annual Securities Report:
June 23, 2020
Preparation of supplementary materials for financial results:
Yes
Holding of financial results meeting:Yes (for analysts and institutional investors)(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for FY3/20 (April 1, 2019 to March 31, 2020)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales

Operating profit

Millions of yen

Fiscal year ended Mar. 31, 2020
Fiscal year ended Mar. 31, 2019

% Millions of yen

154,066
167,419

Note: Comprehensive income (millions of yen):

(8.0)
(3.7)

% Millions of yen(6.6)(45.8)

7,425
9,829

Fiscal year ended Mar. 31, 2020
Fiscal year ended Mar. 31, 2019

Net income per
share
Fiscal year ended Mar. 31, 2020
Fiscal year ended Mar. 31, 2019

5,489
5,879

Diluted net
income per share

Profit attributable toowners of parent

Ordinary profit% Millions of yen(24.5)(20.0)

3,862
6,254

%

(38.2)(15.0)

2,117 (up 256.6%)
593 (down 95.5%)

Return on
equityOrdinary profit
on total assets

Operating profit to
net sales

Yen

Yen

%

%

%

131.14211.08130.60210.20

2.6
4.1

3.6
4.6

3.6
3.5

Reference: Equity in earnings of affiliates (millions of yen):

Fiscal year ended Mar. 31, 2020
Fiscal year ended Mar. 31, 2019

475
394

(2) Consolidated financial position
Shareholders’ equity
ratio

Total assets

Net assets

Millions of yen

Millions of yen%

Yen

201,125
209,465

167,291
167,67174.6
71.7

5,115.92
5,096.96

As of Mar. 31, 2020
As of Mar. 31, 2019

Reference: Shareholders’ equity (millions of yen):

As of Mar. 31, 2020:

150,037

Net assets per share

As of Mar. 31, 2019:

150,236(3) Cash flow position
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

5,927
8,273

(1,407)
1,232(2,265)(3,979)34,65832,316

Fiscal year ended Mar. 31, 2020
Fiscal year ended Mar. 31, 2019

2. Dividends
Dividend per share
1Q-endFiscal year ended Mar. 31, 2019
Fiscal year ended Mar. 31, 2020
Fiscal year ending Mar. 31, 2021
(Forecast)

2Q-end3Q-end Year-end

Total
dividends

Total

Yen

Yen

Yen

Yen

-

30.00
30.00

-

40.00
40.00

70.00
70.00

Yen Millions of yen

-

-

-

-

-

2,088
2,077

Payout ratio(consolidated)

Dividend on
equity(consolidated)

%

%

33.2
53.4

1.4
1.4

-

There is currently no dividend forecast for the fiscal year ending March 31, 2021.

3. Consolidated Forecasts for FY3/21 (April 1, 2020 to March 31, 2021)
No consolidated forecast for the fiscal year ending March 31, 2021 is shown because of the difficulty of determining a reliable
forecast.
For further details, please refer to “1. Overview of Results of Operations, (2) Outlook” on page 5.
.

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): None
(2) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others: Yes
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: None
4) Restatements: None
Note: For further details, please refer to “3. Consolidated Financial Statements and Notes, (5) Notes to Consolidated Financial
Statements (Changes in Accounting Policies)” on page 16.

(3) Number of outstanding shares (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
As of Mar. 31, 2020:

35,837,230 shares

As of Mar. 31, 2019:35,837,230 shares

As of Mar. 31, 2019:

6,361,610 sharesFiscal year ended Mar. 31, 2019:

29,631,713 shares

2) Number of treasury shares at the end of the period
As of Mar. 31, 2020:

6,509,597 shares

3) Average number of shares outstanding during the period
Fiscal year ended Mar. 31, 2020:

29,453,161 shares

Reference: Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for FY3/20 (April 1, 2019 to March 31, 2020)(1) Non-consolidated results of operations
Net sales
Millions of yen

Fiscal year ended Mar. 31, 2020
Fiscal year ended Mar. 31, 2019

102,602110,332% Millions of yen

(7.0)
3.7

Net income per share
Fiscal year ended Mar. 31, 2020
Fiscal year ended Mar. 31, 2019

(Percentages represent year-on-year changes)
Ordinary profit
ProfitOperating profit
5,940
6,331

% Millions of yen(6.2)(18.8)

7,763
10,558% Millions of yen(26.5)
2.0

4,524
5,891

%

(23.2)(21.9)

Diluted net income per share

Yen

Yen

152.13196.94151.51
196.12(2) Non-consolidated financial position
Total assets
Millions of yen

Net assets

Equity ratio

Millions of yen

As of Mar. 31, 2020
166,540
140,367
As of Mar. 31, 2019
173,580
139,856
Reference: Shareholders’ equity (millions of yen): As of Mar. 31, 2020: 140,143

Net assets per share
%

Yen

84.1
4,732.34
80.5
4,692.35
As of Mar. 31, 2019: 139,646* The current financial report is not subject to audit by certified public accountants or auditing firms.
* Cautionary statement with respect to forward-looking statements and other special items
Forecasts of future performance in these materials are based on assumptions judged to be valid and information available to the
management of Yodogawa Steel Works at the time the materials were prepared. These materials are not promises by Yodogawa
Steel Works regarding future performance. Actual results may differ significantly from these forecasts for a number of reasons.
For a discussion of the assumptions for forecasts, precautions concerning usage and other information, please refer to “ 1.
Overview of Results of Operations, (2) Outlook” on page 5.

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/20

Contents of Attachments
1. Overview of Results of Operations

2(1) Results of Operations and Financial Position

2(2) Outlook

5(3) Basic Policy for Profit Distribution and Dividends in the Current and Next Fiscal Years5

2. Basic Approach to the Selection of Accounting Standards

5

3. Consolidated Financial Statements and Notes

6(1) Consolidated Balance Sheet

6(2) Consolidated Statements of Income and Comprehensive Income

8

Consolidated Statement of Income

8

Consolidated Statement of Comprehensive Income

9(3) Consolidated Statement of Changes in Equity

10(4) Consolidated Statement of Cash Flows

12(5) Notes to Consolidated Financial Statements

14

Going-concern Assumption

14

Significant Accounting Policies in the Preparation of Consolidated Financial Statements

14

Changes in Accounting Policies

16

Notes to Consolidated Balance Sheet

17

Notes to Consolidated Statement of Income

18

Notes to Consolidated Statement of Comprehensive Income

20

Notes to Consolidated Statement of Changes in Equity

21

Notes to Consolidated Statement of Cash Flows22

Segment Information

23

Per-share Information

25

Subsequent Events25

4. Non-consolidated Financial Statements

26(1) Non-consolidated Balance Sheet

26(2) Non-consolidated Statement of Income

28(3) Non-consolidated Statement of Changes in Equity

29

1

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/20

1. Overview of Results of Operations(1) Results of Operations and Financial Position
1) Summary of results of operations
In the fiscal year ended March 31, 2020, the second half brought a rapidly strengthening sense of economic
stagnation in Japan due to a downturn in consumer spending following the October 2019 consumption tax hikeand slowing capital investment and housing starts.
The global economy saw a dramatic slowdown due to sluggish economic activity as the effects of U .S.-China
trade friction continued to be felt throughout 2019 in every region. Another major factor was the global spread of
the novel coronavirus infections (COVID-19 pandemic) from the beginning of 2020.
In the steel market in Japan, demand was generally weak due to factors such as decreases in c onstruction demand,
automobile production, and exports. In the overseas steel market, the sentiment, particularly in Asia, remained
weak due to high levels of production in China. The outlook has been extremely uncertain due to the impact of
the COVID-19 pandemic on the global economy from the beginning of 2020.
The Yodogawa Steel Group’s net sales in the fiscal year decreased 13,352 million yen to 154,066 million yen.
Operating profit decreased 390 million yen to 5,489 million yen, ordinary profit decreased 2,403 million yen to
7,425 million yen, and profit attributable to owners of parent decreased 2,392 million yen to 3,862 million yen.
Total assets at the end of the fiscal year decreased 8,339 million yen to 201,125 million yen. This was attributable
mainly to a decrease in trade receivables due to lower sales and a decline in valuation of investment securities
which resulted from the deterioration in the financial instruments markets. Liabilities decreased 7,959 million yen
to 33,834 million yen. This was attributable mainly to a decrease in notes and accounts payable-trade. Net assets
decreased 380 million yen to 167,291 million yen. This was attributable mainly to an increase in retained earnings
and other items and a decrease in valuation difference on available-for-sale securities.
In addition, the COVID-19 pandemic which originated in Wuhan, China at the beginning of 2020, subsequently
spread worldwide. The prevention measures in the major affected countries including Japan, triggered a huge
slowdown in the global macroeconomy. As all overseas consolidated subsidiaries of the Yodogawa Steel Group
have fiscal years ending in December, there was no impact of the COVID -19 pandemic on the business results forthe fiscal year ended March 31, 2020. As our group companies in Japan, including Yodogawa Steel, have fiscal
years ending in March, it is likely that our business activities were affected to a certain extent from February
through March due to the spread of the COVID-19 pandemic in Japan. But the impact seems to have been
insignificant. On the other hand, concerns about the future of the global economy have spread rapidly and thefinancial instruments markets have plunged, affecting the valuation of the financial instruments that we hold.
Results by business segment are as follows.
Steel Sheet-related BusinessNet sales totaled 142,418 million yen and operating profit was 5,898 million yen.
Roll BusinessNet sales totaled 2,833 million yen and operating loss was 311 million yen.
Grating BusinessNet sales totaled 3,481 million yen and operating profit was 80 million yen.
Real Estate BusinessNet sales totaled 1,205 million yen and operating profit was 847 million yen.
Other Businesses
Net sales totaled 4,127 million yen and operating profit was 186 million yen.
Cash and cash equivalents at the end of the fiscal year increased 2,341 million yen from the end of the previous
fiscal year to 34,658 million yen mainly due to an increase in operating cash flows.

2

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/20

Cash flows from operating activities
Net cash provided by operating activities decreased 2,345 million yen to 5,927 million yen. Operating profit of
5,489 million yen was the primary sources of cash.
Cash flows from investing activities
Net cash used in investing activities was 1,407 million yen (compared with 1,232 million yen provided in theprevious fiscal year) mainly due to the net sale of investment securities and purchase of non -current assets.
Cash flows from financing activities
Net cash used in financing activities was 2,265 million yen (compared with 3,979 million yen used in theprevious fiscal year) mainly due to cash dividends paid.
2) Analysis and review of results of operations
Net sales
In Japan, although efforts were made to raise or maintain the selling prices in each business, overall sales volume
decreased, especially in the second half. In addition, Taiwan subsidiary Sheng Yu Steel Co., Ltd. (SYSCO) saw asignificant decrease in export particularly to North America, due to U .S. trade protectionism. As a result,consolidated sales decreased.
Operating profit
Operating profit was lower in Japan primarily because of a decrease in sales volume and a smaller contribution toearnings growth from inventory valuations than in the previous fiscal year. All overseas subsidiaries experienced
challenging market conditions, but the combined operating profit of the three overseas companies improved
slightly. Consequently, consolidated operating profit was lower.
Ordinary profit
In addition to a decrease in the gains on sales of investment securities included under non-operating income,losses were recorded on financial products under non-operating expenses. As a result, ordinary profit declined
more than operating profit.
Profit attributable to owners of parent
The decline in consolidated net income was greater than the decrease in ordinary profit due to valuation losses on
financial instruments caused by the deterioration in the financial instruments markets. The lower earnings at
Keiyo Tekko Futo Co., Ltd., and SYSCO, both of which have a high percentage of non-controlling interest
ownership was another major reason for the decline in consolidated net income. As a result, the decrease in profit
attributable to owners of parent is smaller than the decrease in consolidated net income.
The Yodogawa Steel Group’s basic strategy for capital policy is to maintain consistent operating cash flows inorder to secure funds needed for substantial investments for sustained growth as well as the greatest possible
shareholder distributions while maintaining financial soundness.
As of the end of March 2020, there were no significant capital expenditures planned that would require theprocurement of funds from external sources. For working capital and capital expenditures, the policy is to useinternal resources as the main source of funding and use loans from financial institutions as needed for the time
being.
As an objective target for monitoring progress concerning management policies, strategic goals and businessgoals, the Yodogawa Steel Group Medium-Term Management Plan 2019, which was announced in March 2017,
has the following goal: consolidated ordinary profit of at least 10 billion yen every year regardless of theperformance of existing businesses and changes in the business climate, including foreign exchan ge rate
movements.
In the fiscal year that ended on March 31, 2020, the operating environment was challenging due to the higher costof raw materials, energy and other items. Trade protectionism in all regions of the world also made market
conditions difficult. Although there were many activities using the speed and flexibility that has always been one

3Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/20

of the Yodogawa Steel Group’s key strengths, the Group was unable to achieve the consolidated ordinary profit
goal of at least 10 billion yen.
Recognition, analysis and review of financial position and results of operations by business segment are as
follows.
Steel Sheet-related Business
Steel Sheet Segment
In Japan, we focused on price revisions and on expansion of sales of pre-painted steel sheets, a product withsignificant added value, to specific high-demand customers. But sales were lower as the sales volume of plated
steel sheets for building materials declined mainly in the second half due to the impact of low -priced imported
materials and market stagnation.
The sales volume of steel sheets for general distribution decreased in the second half, but sales volume was upslightly for the full year, resulting in a small increase in sales.
Overseas, SYSCO’s sales fell mainly because of a big downturn in exports to North America. Sales were lower at
Yodogawa-Shengyu (Hefei) High-Tech Steel Co., Ltd. (YSS), a Chinese subsidiary, because of a decrease in sales
volume as the company shifted sales activities that focused to profitability. Nevertheless, profits improved due toan increase in the sales volume of high-margin pre-painted steel sheets. PCM Processing (Thailand) LTD. (PPT),a Thai subsidiary, continues to face a difficult business environment. While sales were at about the same level,
profitability improved due to an increase in sales volume of value-added products.
Building Material & Exterior Products Segment
In the building materials category, sales decreased mainly because of the lower sales volume of Yodoroof
products caused by the policy of placing priority on profitability when accepting orders. Sales of exterior
products increased. This was the result of a small decrease in the sales volume of storage sheds, strong garage
sales and revisions of product prices. Construction sales were higher because of an increase in completions oflarge projects.
As a result, sales and earnings in this segment decreased.
Roll Business
Sales and earnings decreased because of the decrease of shipments caused by problems created by improper
activities involving the quality of roll products in 2018.
Grating Business
Sales and earnings slightly decreased mainly because of a decline in orders in the public-works sector despite
firm demand in the private sector.
Real Estate Business
Sales and earnings increased mainly because of higher rents at tenant-occupied buildings.
Other Businesses
Sales increased but earnings decreased due to lower profitability along with a decline in the volume of cargohandled in the transportation and warehouse businesses despite higher sales in the engineering business.

4

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/20(2) Outlook
Various regions of the world including Japan, have extensively implemented measures, such as citizens ’restrictions on going out and the shutdown of commercial facilities, to curb the spread of the COVID -19
pandemic. This has significantly affected personal consumption and corporate activities.
The above actions to curb the spread of the COVID-19 pandemic are bound to significantly affect the global
macro economy as well as the Yodogawa Steel Group’s operating environment. As the extent of the pandemic’s
impact is extremely uncertain at this point, determining a reliable forecast for the fiscal year ending in March
2021 is extremely difficult. An announcement will be made promptly once it becomes possible to de termine a
reliable forecast.
The Yodogawa Steel Group today announced the Yodogawa Steel Group Medium -Term Management Plan 2022.
The three-year plan starts in the fiscal year ending March 31, 2021 and follows the Yodogawa Steel Group
Medium-Term Management Plan 2019. While the current environment is extremely uncertain the Group iscommitted to strengthen its profitability by maximizing speed and flexibility that are key strengths of the
Yodogawa Steel Group and implementing measures in response to changes in the environment.
(3) Basic Policy for Profit Distribution and Dividends in the Current and Next Fiscal Years
Distributing earnings to shareholders is one of the highest priorities of Yodogawa Steel. Earnings are distributedby paying dividends that reflect results of operations, repurchasing stock and in other ways. The basic policy for
dividends that are in line with our results of operations is to make payments that are stable and continuous.
Dividends also take into consideration the need for funds for investments and other actions for increasing
corporate value, the outlook for sales and earnings, the need to maintain financial soundness, and other items. To
pay dividends that reflect results of operations, the target consolidated payout ratio is bet ween about 30% and50%. In addition, there is a goal of paying an annual dividend of at least 50 yen per share for each of the threefiscal years ended on March 31, 2018, 2019 and 2020.
The basic policy is to pay interim and year-end dividends. In accordance with Article 459, Paragraph 1 of theCompanies Act, the Yodogawa Steel Articles of Incorporation state that dividends can be paid based on a
resolution of the Board of Directors, except in cases where stipulated otherwise by laws and regulations.
The year-end dividend for the fiscal year that ended March 31, 2020 is to be 40 yen per share. With the interim
dividend of 30 yen, this will result in a dividend of 70 yen per share for this fiscal year.
There is currently no dividend forecast for the fiscal year ending March 31, 2021. An announcement will be madepromptly once it becomes possible to disclose a dividend forecast.
2. Basic Approach to the Selection of Accounting Standards
The Yodogawa Steel Group will continue to prepare consolidated financial statements using generally accepted
accounting principles in Japan for the time being to permit comparisons with prior years and with the financial
data of other companies.
We will take suitable actions with regard to the application of the International F inancial Reporting Standards(IFRS) by taking into account associated factors in Japan and other countries.

5

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/20

3. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheet
FY3/19(as of Mar. 31, 2019)(Millions of yen)
FY3/20(as of Mar. 31, 2020)

Cash and deposits*1

36,843*1

Notes and accounts receivable-trade*5

AssetsCurrent assets
32,65044,018

39,117

Securities

3,494

8,652

Merchandise and finished goods

15,51915,406Work in process

4,397

4,145

Raw materials and supplies

12,733

12,216

Other

3,881

4,496

Allowance for doubtful accounts

(132)

(131)

120,755

116,553

60,45860,663

Accumulated depreciation(45,269)(46,096)

Buildings and structures, net

15,18914,566

Machinery, equipment and vehicles

134,337

135,668

Accumulated depreciation(121,482)(123,356)

12,855

12,312

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

Machinery, equipment and vehicles, net
Land

*4

18,687

Leased assets
Accumulated depreciation*4

19,001

47

91

(35)

(50)

Leased assets, net

1241Construction in progress

554

802

Other

12,004

11,838(11,175)(11,069)828

769

48,12647,493

Other

1,472

1,641

Total intangible assets

1,472

1,641

Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities*1, *2

38,292

Deferred tax assets*1, *2

34,778

369

Other

*1

Total investments and other assets
Total non-current assets
Total assets

6

448

234
*1

424

39,10935,43788,70984,572

209,465

201,125

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/20(Millions of yen)
FY3/20(as of Mar. 31, 2020)

FY3/19(as of Mar. 31, 2019)
Liabilities
Current liabilities
Notes and accounts payable-trade*5

Electronically recorded obligations-operating
Short-term borrowings
Lease obligations
Income taxes payable
Provision for bonuses

17,858

10,582

-

2,340

327

640

9

23

1,736

250

971

Other

*1, *5

6,265

Total current liabilities

923
*1

4,748

27,16819,5091022

Non-current liabilities
Lease obligations
Deferred tax liabilities

2,502

Deferred tax liabilities for land revaluation
Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability

*4

856

2,044
*4

856

66

79

7,154

7,281

Other

4,034

4,041

Total non-current liabilities

14,624

14,324

41,793

33,834

Share capital

23,22023,220Capital surplus

20,385

20,381

Total liabilities
Net assets
Shareholders’ equity

Retained earnings

104,961

106,763

Treasury shares(13,061)(13,351)

Total shareholders’ equity

135,505

137,014

12,213

10,476

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land*4

Foreign currency translation adjustment

1,639
1,378

*4

1,636
1,489

Remeasurements of defined benefit plans

(500)

(578)

Total accumulated other comprehensive income

14,73013,023

210

224

Share acquisition rights
Non-controlling interests

17,22517,029Total net assets

167,671

167,291

209,465

201,125

Total liabilities and net assets

7

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/20(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statement of Income)
FY3/19(Apr. 1, 2018 to Mar. 31, 2019)(Millions of yen)
FY3/20(Apr. 1, 2019 to Mar. 31, 2020)

167,419

154,066

Net sales
Cost of sales*1

Gross profit

144,180*1

23,238Selling, general and administrative expenses*2, *3

17,358Operating profit

131,540
22,525*2, *3

17,036

5,879

5,489

Interest income

579

450

Dividend income

841

773

Non-operating income

Insurance claim income

89

76

2,017

1,028

168

-

394

475

200

230

4,292

3,035

Interest expenses

80

81

Foreign exchange losses-

121

Loss on valuation of derivatives-

653

Commitment fee
Cost for employees transferred temporarily tooverseas subsidiaries
Other

24

24

194

161

42

55

Total non-operating expenses

342

1,099

9,829

7,425

Gain on sales of investment securities
Foreign exchange gains
Share of profit of entities accounted for using
equity method
Other
Total non-operating income
Non-operating expenses

Ordinary profit
Extraordinary income
Gain on sales of non-current assets-

Insurance claim income

88

295

Total extraordinary income

88

295

Extraordinary losses
Loss on sales and retirement of non-current
assetsImpairment loss

*4

0

*5

53

*5

92

*6

6

*6

0

Loss on disaster

651

214

Loss on valuation of investment securities

44

1,905

Other

0

-

755

2,213

Profit before income taxes

Total extraordinary losses

9,162

5,507

Income taxes-current

3,174

1,782

Income taxes-deferred

(509)

236

Total income taxes

2,664

2,019

Profit

6,497

3,488

243

(373)

6,254

3,862

Profit (loss) attributable to non-controllinginterests
Profit attributable to owners of parent

8

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/20(Consolidated Statement of Comprehensive Income)
FY3/19(Apr. 1, 2018 to Mar. 31, 2019)(Millions of yen)
FY3/20(Apr. 1, 2019 to Mar. 31, 2020)

6,497

3,488

(4,210)(1,608)(2,303)

281

669

44

(58)

(88)

ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, netof taxShare of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income*

Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to ownersof parent
Comprehensive income attributable tonon-controlling interests

9(5,903)*(1,371)

593

2,117

1,116

2,158

(522)

(41)

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/20(3) Consolidated Statement of Changes in Equity
FY3/19 (Apr. 1, 2018 to Mar. 31, 2019)(Millions of yen)
Shareholders’ equity
Share capital
Balance at beginning of period

Retainedearnings

Capital surplus

23,22020,393

Treasury shares

Total shareholders’equity(12,679)

131,710

100,775

Changes during period
Dividends of surplus
Profit attributable to owners ofparent(2,076)(2,076)

6,254

6,254

Purchase of treasury shares
Disposal of treasury shares

(443)

(443)

61

43

(17)

Purchase of shares of
consolidated subsidiaries
Reversal of revaluation reserve
for landNet changes in items other thanshareholders’ equity

8

8
7

Total changes during period
Balance at end of period

7

-

(8)

4,185

(382)

3,795

23,22020,385

104,961(13,061)

135,505

Accumulated other comprehensive income
Valuation
Foreign
Revaluationdifference on
currency
reserve foravailable-fortranslation
landsale securities
adjustment
Balance at beginningof period

16,420

1,646

2,798

RemeasureTotal
Share
NonTotal net
ments ofaccumulatedacquisition controlling
assetsdefinedotherrightsinterests
benefit comprehensive
plansincome(990)

19,875223

18,764

170,574

Changes during period
Dividends ofsurplusProfit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesPurchase of sharesof consolidated
subsidiaries
Reversal ofrevaluation reserve
for landNet changes in
items other thanshareholders’ equity
Total changes during
periodBalance at end of
period(2,076)
6,254
(443)
43
8

7

(4,207)(7)(1,419)489(5,145)(13)(1,539)(6,698)(4,207)(7)(1,419)489(5,145)(13)(1,539)(2,902)

12,213

1,639

1,378

(500)

14,730210

17,225

167,67110

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/20

FY3/20 (Apr. 1, 2019 to Mar. 31, 2020)(Millions of yen)
Shareholders’ equity
Share capital
Balance at beginning of period

Retainedearnings

Capital surplus

23,22020,385

Treasury shares

Total shareholders’equity(13,061)

135,505

104,961

Changes during period
Dividends of surplus
Profit attributable to owners ofparent(2,063)(2,063)

3,862

3,862

Purchase of treasury shares
Disposal of treasury shares

(300)

(300)

10

6

(3)

Reversal of revaluation reserve
for landNet changes in items other thanshareholders’ equity

2

Total changes during period
Balance at end of period

2

-

(3)

1,802

(290)

1,508

23,22020,381

106,763(13,351)

137,014

Accumulated other comprehensive income
Valuation
Foreign
Revaluationdifference on
currency
reserve foravailable-fortranslation
landsale securities
adjustment
Balance at beginningof period

12,213

1,639

1,378

RemeasureTotal
Share
NonTotal net
ments ofaccumulatedacquisition controlling
assetsdefinedotherrightsinterests
benefit comprehensive
plansincome(500)

14,730210

17,225

167,671

Changes during period
Dividends ofsurplusProfit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
shares
Reversal ofrevaluation reserve
for landNet changes in
items other thanshareholders’ equity
Total changes during
periodBalance at end of
period(2,063)
3,862
(300)
6
2

(1,736)

(2)

111

(78)

(1,706)13(195)(1,889)(1,736)

(2)

111

(78)

(1,706)

13

(195)

(380)

10,476

1,636

1,489

(578)

13,023224

17,029167,29111

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/20(4) Consolidated Statement of Cash Flows
FY3/19(Apr. 1, 2018 to Mar. 31, 2019)(Millions of yen)
FY3/20(Apr. 1, 2019 to Mar. 31, 2020)

Profit before income taxes

9,162

5,507

Depreciation

4,056

3,788

3

-

(394)

(475)

399

74

0

13

(85)

(47)

(16)

(1)

(1,421)(1,224)80

81

Cash flows from operating activities

Amortization of goodwill
Share of loss (profit) of entities accounted forusing equity method
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for retirement
benefits for directors (and other officers)
Increase (decrease) in provision for bonuses
Increase (decrease) in allowance for doubtful
accounts
Interest and dividend income
Interest expenses
Insurance claim income

(177)

(371)

(2,017)(1,028)Loss (gain) on valuation of investment securities

44

1,905

Loss (gain) on valuation of derivatives
Loss (gain) on sales and retirement of non-current
assetsLoss on disaster

-

653

53

92

651

214

Loss (gain) on sales of investment securities

Impairment loss
Decrease (increase) in trade receivables

6

0

(238)

4,915

Decrease (increase) in inventories

529

249

Increase (decrease) in trade payables(199)(4,955)

Increase (decrease) in accrued consumption taxes

300

(215)

Other, net(370)(1,034)

Subtotal

10,367

8,143

Proceeds from insurance income

163

371

Interest and dividends received

1,508

1,311

Interest paid

(80)

(81)

Payments associated with disaster loss

(102)

(609)

(3,582)(3,209)

8,273

5,927

Income taxes paid
Net cash provided by (used in) operating activities

12

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/20(Millions of yen)
FY3/19(Apr. 1, 2018 to Mar. 31, 2019)

FY3/20(Apr. 1, 2019 to Mar. 31, 2020)(4,385)(6,667)

3,727

5,896

Cash flows from investing activities
Investments in time deposits with a maturity ofmore than three months
Proceeds from time deposits with a maturity ofmore than three months
Proceeds from sales and redemption of securities

1,600

1,700

Purchase of property, plant and equipment
Proceeds from sales of property, plant andequipment
Purchase of intangible assets(2,281)(2,691)

0

0

(182)

(314)

Purchase of investment securities
Proceeds from sales and redemption of investment
securities
Loan advances(3,027)

(607)

5,500

1,421

(19)

(200)

300

52

Collection of loans receivable
Other, net
Net cash provided by (used in) investing activities

-

1

1,232

(1,407)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of lease obligations
Proceeds from sales of treasury shares

327

283

(763)

(14)

0

0

(440)

(297)

Dividends paid

(2,095)(2,083)

Dividends paid to non-controlling interests
Payments from changes in ownership interests in
subsidiaries that do not result in change in scopeof consolidation(1,005)

(154)

(2)

-

Net cash provided by (used in) financing activities(3,979)(2,265)(485)

87

Purchase of treasury shares

Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents

5,039

2,341

Cash and cash equivalents at beginning of period

27,27732,316

Cash and cash equivalents at end of period*

1332,316*34,658

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/20(5) Notes to Consolidated Financial Statements
Going-concern Assumption
Not applicable.
Significant Accounting Policies in the Preparation of Consolidated Financial Statements
1. Scope of consolidation(1) Number of consolidated subsidiaries: 7
Takada Kozai Kogyo Co., Ltd.
Sheng Yu Steel Co., Ltd. (SYSCO)
Yodoko Shoji Co., Ltd.
Keiyo Tekko Futo Co., Ltd.
Yodoko Kohatsu Co., Ltd.
Yodogawa-Shengyu (Hefei) High-Tech Steel Co., Ltd. (YSS)
PCM Processing (Thailand) Ltd. (PPT)(2) Names of major non-consolidated subsidiaries
Yodoko Kosan Co., Ltd., Yodogawa-Fuyo Co.,Ltd., Yodoko International Ltd. (YIL), Yodoko Building Materials(Hangzhou) Co.,Ltd. (YBMH)
The sum of total assets, sales, profit or loss (equity-method amount), retained earnings (equity-method amount) and otherfinancial items of non-consolidated subsidiaries is small in relation to all of the corresponding consolidated figures.
Consequently, these subsidiaries are excluded from consolidation because they would not have a material impact on the
consolidated financial statements.
2. Application of equity method(1) Number of non-consolidated subsidiaries and affiliates accounted for using the equity method and names of major
companies
Non-consolidated subsidiaries: None
Affiliates: 1
SADOSHIMA CORPORATION(2) Names of major non-consolidated subsidiaries and affiliates not accounted for using the equity method and reason for
exclusion
Non-consolidated subsidiaries: Yodoko Kosan Co., Ltd., Yodogawa-Fuyo Co.,Ltd., Yodoko International Ltd. (YIL),
Yodoko Building Materials (Hangzhou) Co.,Ltd. (YBMH)
Affiliates: FUJIDEN INTERNATIONAL CORP.
The profit or loss (equity-method amount), retained earnings (equity-method amount) and other financial items of the
non-consolidated subsidiaries and affiliates not accounted for using the equ ity method are negligible and the sum of these
items for all of these subsidiaries and affiliates is immaterial in relation to the consolidated financial statements.
Consequently, the cost method is used for the valuation of investments in these companies and the equity method is not
used.
3. Fiscal year-end of consolidated subsidiaries
For consolidated subsidiaries, the fiscal year-end of SYSCO, YSS and PPT is the end of December. For the preparation of
the consolidated financial statements, the financial statements as of the end of December are used for SYSCO, YSS and PPT.
Consolidation adjustments are then made as needed for any significant transactions that occurred between January 1 andMarch 31, the end of the consolidated fiscal year.
4. Significant accounting policies(1) Valuation standards and methods for significant assets
1) Securities
i. Held-to-maturity debt securities
Stated at amortized cost (the straight-line method)
ii. Available-for-sale securities
With market quotations
Stated at fair value based on the market price at the end of the fiscal year (Unrealized gain or loss, net of applicable
income taxes, are included directly in net assets, and cost of securities sold is determined by the moving -average method.

14

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/20

Without market quotations
Stated at cost determined by the moving-average method
2) Derivatives
Stated at fair value
3) Inventories
Primarily stated at cost determined by the gross average method (The carrying value on the balance sheet is written down
to reflect declines in profitability.)
The overseas subsidiaries apply primarily the cost method based on the moving -average method.
(2) Depreciation and amortization methods for significant depreciable assets
1) Property, plant and equipment (excluding lease assets)
Yodogawa Steel and domestic consolidated subsidiaries apply the declining-balance method. The overseas consolidated
subsidiaries apply the straight-line method.
However, Yodogawa Steel and domestic consolidated subsidiaries apply the straight -line method for depreciation ofbuildings acquired on or after April 1, 1998 (excluding facilities attached to buildings) and facilities attached to building s
and structures acquired on or after April 1, 2016.
The major useful lives of property, plant and equipment are as follows:
Buildings and structures
3 to 60 years
Machinery, equipment and vehicles
3 to 36 years
2) Intangible assets (excluding lease assets)
Straight-line method is applied.
Software for internal use is amortized by the straight-line method over an estimated useful life of five years.
3) Lease assets
Lease assets associated with finance lease transactions that transfer ownership
The same method as the depreciation method used for non-current assets held by Yodogawa Steel is applied.
Lease assets associated with finance lease transactions that do not transfer ownership
The straight-line method is applied over the lease period used as the useful life of the assets with no residual value.
(3) Accounting for significant allowances
1) Allowance for doubtful accounts
To prepare for credit losses on accounts receivable-trade and loans receivables, an allowance equal to the estimatedamount of uncollectible receivables is provided for general receivables based on the historical write-off ratio, and bad
receivables based on a case-by-case determination of collectibility.
2) Provision for bonuses
To provide for accrued bonuses for employees, an allowance is provided at the amount based on the estimated bonus
obligations in the current fiscal year.
3) Provision for retirement benefits for directors (and other officers)
To provide for directors’ retirement benefits obligation, an allowance is provided at an amount required to be paid at the
fiscal year-end in accordance with the internal rules on directors’ retirement benefits at domestic consolidated subsidiaries.
(4) Accounting method for retirement benefits
1) Method of attributing estimated retirement benefits to periods
In calculation of retirement benefit obligations, Yodogawa Steel uses the straight -line method for attributing estimatedretirement benefits to period up to the end of the current fiscal year.
2) Amortization of actuarial differences and past service cost
Past service cost is amortized and expensed by the straight-line method over a certain period (mainly 10 years) within the
average remaining years of service of the eligible employees when incurred.
Actuarial differences are amortized by the straight-line method over a certain period (mainly 10 years) within the averageremaining years of service of the eligible employees when incurred and expensed in the year following the fiscal year inwhich such differences are recognized.
3) Adoption of the simplified method in small-scale companies
Some consolidated subsidiaries calculate retirement benefit liability and retirement benefit expenses by using a simplified
15

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/20

method in which the retirement benefit obligations are equal to the amount that would be paid if all employees voluntarily
requested retirement benefits at the end of the fiscal year.
(5) Recognition of significant revenues and expenses
Recognition criteria for recording amount and cost of completed construction contracts
1) For contracted work of which the outcome by the end of the current fiscal year can be reliably estimated, thepercentage-of-completion method (with the percentage of completion estimated on the cost-to-cost basis) is applied.
2) The completed-contract method is applied to other contracted work.
(6) Translation of significant foreign currency-denominated assets and liabilities
Foreign currency-denominated receivables and payables are translated into Japanese yen at the spot exchange rate on the
consolidated balance sheet date and resulting exchange gains or losses are recognized in profit or loss. Assets andliabilities of overseas subsidiaries are translated into Japanese yen at the spot exchange rate of their balance sheet dates,
and income and expenses are translated into Japanese yen at the average exchange rates for the period. The resulting
exchange gains or losses are included in foreign currency translation adjustment and non-controlling interests under the net
assets section.
(7) Method of significant hedge accounting
1) Hedging method
The deferred hedge accounting is used. However, the allocation method is used for forward e xchange contracts that meetcertain hedge accounting criteria.
2) Hedging instruments and hedged items
Hedging instruments:
Hedged items:
Forward exchange contracts
Receivables and payables denominated in foreign currencies
3) Hedging policy
Hedging is used to reduce risk exposure for hedged items.
4) Method for assessing hedge effectivenessFor foreign currency-denominated receivables and payables with forward exchange contracts, the assessment of hedge
effectiveness is omitted because hedges are assumed to completely offset changes in cash flows since the significant terms
for hedging instruments and hedged items are the same.
(8) Amortization method and period of goodwill
Goodwill is amortized using the straight-line method over a period of five years.
(9) Cash and cash equivalents in the consolidated statement of cash flows
Cash and cash equivalents consists of cash on hand, deposits that can be withdrawn on demand, and short -term investments,
with maturities of three months or less, that are readily convertible to cash and present insignificant risk of change invalue.
(10) Accounting for consumption taxes
All amounts stated are exclusive of national and local consumption taxes. Non -deductible national and local consumption
taxes are changed to expenses in the current fiscal year.

Changes in Accounting Policies
Beginning with the fiscal year ended March 31, 2020, Yodogawa Steel Works has applied the Practical Solution on Unification o f
Accounting Policies Applied to Foreign Subsidiaries, etc. for Consolidated Financial Statements (Practical Issues Task Force (PITF)
No. 18, June 28, 2019) and Practical Solution on Unification of Accounting Policies Applied to Associates Accounted for Using theEquity Method (PITF No. 24, September 14, 2018). When International Financial Reporting Standard No. 9 “Financial Instruments”
is used for foreign subsidiaries, etc. and the option of including in other comprehensive income subsequent revisions to the fairvalues of equity instruments has been selected, then for the preparation of the consolidated financial statements, the amounts ofgains or losses and of asset impairment charges concerning these equity instruments are included in the statement of income f or theapplicable fiscal year.
This change had no effect on the consolidated statement of income for the fiscal year ended March 31, 2020.

16

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/20

Notes to Consolidated Balance Sheet*1. Assets pledged as collateral and liabilities with collateral
Assets pledged as collateral are as follows:

Cash and deposits

60(Millions of yen)
FY3/20(as of Mar. 31, 2020)
60

Investment securities

6

6

Other (Investment and other assets)

37

38

104

105

50

(Millions of yen)
FY3/20(as of Mar. 31, 2020)
52

FY3/19(as of Mar. 31, 2019)
5,796(Millions of yen)
FY3/20(as of Mar. 31, 2020)
6,096

FY3/19(as of Mar. 31, 2019)

Total
Liabilities with collateral are as follows:
FY3/19(as of Mar. 31, 2019)
Other current liabilities*2. The following items are applicable to non-consolidated subsidiaries and affiliates.

Investment securities (stocks)
3. Contingent liabilities
Guaranteed debt

Debt guarantees are provided for loans from financial institutions and other lenders to companies other than consolidated
subsidiaries.
(Millions of yen)
FY3/19FY3/20(as of Mar. 31, 2019)(as of Mar. 31, 2020)
YBMH
121*4. In accordance with the Act on Revaluation of Land (Act No. 34, March 31, 1998), some consolidated subsidiaries andequity-method affiliates reevaluated land used for business operations. The equity -method portion of the land revaluationdifference resulting from this reevaluation is included in net assets as a revaluation reserve for land.
- Method of revaluation: Revaluation is conducted in accordance with Article 2, Paragraph 3 and 4 of the Order for
Enforcement of the Act on Revaluation of Land (Cabinet Order No. 119, promulgated on
March 31, 1998).
- Date of revaluation:

March 31, 2000
(Millions of yen)
FY3/20(as of Mar. 31, 2020)

FY3/19(as of Mar. 31, 2019)
Difference between the market value of land for revaluation
and book value of the said land after revaluation
Portion of difference for leased land, etc.
- Date of revaluation:

(326)

(320)

(12)

(10)

March 31, 2002
FY3/19(as of Mar. 31, 2019)

Difference between the market value of land for revaluation
and book value of the said land after revaluation
Portion of difference for leased land, etc.

17(Millions of yen)
FY3/20(as of Mar. 31, 2020)

(455)

(455)

(278)

(278)

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/20*5. Notes matured at the end of the fiscal year
With respect to accounting for notes matured at the end of the fiscal year, though the previous fiscal year-end fell on aholiday for financial institutions, they were treated as though they were settled on the maturity date. The amounts of notes
matured at the end of the fiscal year are as follows.
(Millions of yen)
FY3/19FY3/20(as of Mar. 31, 2019)(as of Mar. 31, 2020)
Notes receivable-trade
1,195
Notes payable-trade

414

Current liabilities (other)

7(Notes payable-facilities)
6. Yodogawa Steel has committed line agreements with a number of financial institutions in order to procure funds forworking capital whenever needed. The unused balance under the commitment lines of credit at the end of the fiscal year
is as follows.
(Millions of yen)
FY3/19FY3/20(as of Mar. 31, 2019)(as of Mar. 31, 2020)
Total commitment line of credit
16,61015,750Credit used
Unused balance--

16,61015,750Notes to Consolidated Statement of Income*1. The ending inventory is the amount written down to reflect decline in profitability. The follow ing loss on valuation of
inventories is included in cost of sales.
(Millions of yen)
FY3/19FY3/20(Apr. 1, 2018 to Mar. 31, 2019)(Apr. 1, 2019 to Mar. 31, 2020)
325

8*2. Major items and amounts of selling, general and administrative expenses are as f ollows:(Millions of yen)
FY3/19FY3/20(Apr. 1, 2018 to Mar. 31, 2019) (Apr. 1, 2019 to Mar. 31, 2020)
5,013
4,804

Freightage expenses
Salaries and allowances

4,398

4,202

Provision for bonuses

347

327

Retirement benefit expenses

238

203

*3. Total amount of research and development expenses included in general and administrative expenses(Millions of yen)
FY3/20(Apr. 1, 2019 to Mar. 31, 2020)
440

FY3/19(Apr. 1, 2018 to Mar. 31, 2019)462*4. Breakdown of gain on sales of non-current assets is as follows:

Machinery, equipment and vehicles(Millions of yen)
FY3/19FY3/20(Apr. 1, 2018 to Mar. 31, 2019) (Apr. 1, 2019 to Mar. 31, 2020)
0

Other (property, plant and equipment)
Total

18

-

0

-

0

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/20*5. Breakdown of loss on sales and retirement of non-current assets is as follows:(Millions of yen)
FY3/19FY3/20(Apr. 1, 2018 to Mar. 31, 2019) (Apr. 1, 2019 to Mar. 31, 2020)
3
42

Buildings and structures
Machinery, equipment and vehicles

45

36

Other (property, plant and equipment)

4

8

Other (intangible assets)
Total

0

4

53

92

*6. The Yodogawa Steel Group recognized an impairment loss on the following asset groups.
FY3/19 (Apr. 1, 2018 to Mar. 31, 2019)
Location

Use

Type

(Millions of yen)AmountChonburi, Thailand-

Goodwill3

Miyazaki City, Miyazaki

Idle assets

Land

2

Suzaka City, Nagano

Idle assets

Land

0

Yodogawa Steel and its consolidated subsidiaries group assets based on asset classifications used for managerial accounting
for monitoring the performance of businesses on a regular basis. There was an impairment loss of 3 million yen on goodwill
associated with PPT. In the fiscal year ended March 31, 2019, for idle assets with no prospects for use in the future where themarket value has decreased, the book value was written down to the recoverable amount and this impairment loss of 2 million
yen (all for land) was recognized as an extraordinary loss. For the recoverable amount, net selling prices are calculated bas ed
on property tax valuations.
FY3/20 (Apr. 1, 2019 to Mar. 31, 2020)
Location

Use

Type

(Millions of yen)AmountMiyazaki City, Miyazaki

Idle assets

Land

0

Suzaka City, Nagano

Idle assets

Land

0

Yodogawa Steel and its consolidated subsidiaries group assets based on asset classifications used for managerial accounting
for monitoring the performance of businesses on a regular basis. In the fiscal year ended March 31, 20 20, for idle assets withno prospects for use in the future where the market value has decreased, the book value was written down to the recoverable
amount and this impairment loss of 0 million yen (all for land) was recognized as an extraordinary loss. For the recoverable
amount, net selling prices are calculated based on property tax valuations.

19

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/20

Notes to Consolidated Statement of Comprehensive Income* Reclassification adjustments and tax effect with respect to other comprehensive income(Millions of yen)
FY3/19FY3/20(Apr. 1, 2018 to Mar. 31, 2019) (Apr. 1, 2019 to Mar. 31, 2020)
Valuation difference on available-for-sale securities:
Amount incurred during the year

(3,626)

Reclassification adjustments(1,971)877(5,598)(2,119)

1,387

510

(4,210)(1,608)(2,303)281--(2,303)281--(2,303)281

Amount incurred during the year

468

(402)

Reclassification adjustments

389

417

Before tax effect adjustments
Tax effect
Valuation difference on available-for-sale securities(2,996)

Foreign currency translation adjustment:
Amount incurred during the year
Reclassification adjustments
Before tax effect adjustments
Tax effectForeign currency translation adjustment
Remeasurements of defined benefit plans, net of tax:

Before tax effect adjustments
Tax effectRemeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted
for using equity method:Amount incurred during the year
Reclassification adjustments
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income

20

857

14

(188)

29

669

44

(58)

(88)

-

-

(58)

(88)

(5,903)(1,371)

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/20

Notes to Consolidated Statement of Changes in Equity
FY3/19 (Apr. 1, 2018 to Mar. 31, 2019)
1. Type and number of outstanding shares and treasury shares
Number of shares
as of Apr. 1, 2018

Increase(Thousands of shares)
Number of shares
as of Mar. 31, 2019

Decrease

Outstanding shares
Common stockTotal

35,837--35,83735,837--35,837

6,185

202

26

6,361

Treasury shares
Common stock (Notes 1 and 2)

Total
6,185
202
26
6,361
Notes: 1. An increase of 202 thousand shares in the number of treasury shares is due to an increase of 200 thousand sharesfrom the acquisition of treasury shares based on a resolution by the Board of Directors, an increase of 1 thousand
shares from the purchase of shares less than one unit, and the return of 1 thousand shares of tr easury shares(Yodogawa Steel Works shares) that an equity-method affiliate had acquired.
2. The decrease of 26 thousand shares in the number of treasury shares is due to a decrease of 26 thousand shares toprovide stock to individuals who exercised stock options and a decrease of 0 thousand shares due to the transfer ofshares less than one unit in response to purchase requests.
2. Share acquisition rights and treasury share acquisition rights
Number of shares subject to share acquisition rights
Type of shares(Thousands of shares)
Details of share
Category
subject to shareacquisition rights
As of Apr.
As of Mar.
acquisition rights
Increase
Decrease
1, 201831, 2019
FilingShare acquisition
company
rights as stock options(Parent)
Total-

Balance as ofMar. 31, 2019
(Millions of
yen)
210
210

3. Dividends(1) Dividend payment
Resolution

Type of share

Board of Directors’ meetingon May 10, 2018
Board of Directors’ meetingon Nov. 2, 2018

Commonstock
Commonstock

Total dividends(Millions of yen)

Dividend pershare (Yen)Record date

Effective date

1,197

40

Mar. 31, 2018

Jun. 25, 2018

898

30

Sep. 30, 2018

Dec. 3, 2018

(2) Dividends with a record date in FY3/19 but an effective date in FY3/20
Type of
Total dividends
Source of
Resolution
share(Millions of yen)funds
Board of Directors’ meeting
CommonRetained
1,190
on May 9, 2019stock
earnings

21

Dividend pershare (Yen)Record date

Effective date

40

Mar. 31, 2019

Jun. 24, 2019

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/20

FY3/20 (Apr. 1, 2019 to Mar. 31, 2020)
1. Type and number of outstanding shares and treasury shares
Number of shares
as of Apr. 1, 2019

Increase(Thousands of shares)
Number of shares
as of Mar. 31, 2020

Decrease

Outstanding shares
Common stockTotal

35,837--35,83735,837--35,837

6,361

152

4

6,509

Treasury shares
Common stock (Notes 1 and 2)

Total
6,361
152
4
6,509
Notes: 1. An increase of 152 thousand shares in the number of treasury shares is due to an increase of 149 thousand sharesfrom the acquisition of treasury shares based on a resolution by the Board of Directors, an increase of 1 thousand
shares from the purchase of shares less than one unit, and the return of 1 thousand shares of treasury shares(Yodogawa Steel Works shares) that an equity-method affiliate had acquired.
2. The decrease of 4 thousand shares in the number of treasury shares is due to a decrease of 4 thousand shares toprovide stock to individuals who exercised stock options and a decrease of 0 thousand shares due to the transfer ofshares less than one unit in response to purchase requests.
2. Share acquisition rights and treasury share acquisition rights
Number of shares subject to share acquisition rights
Type of shares(Thousands of shares)
Details of share
Category
subject to shareacquisition rights
As of Apr.
As of Mar.
acquisition rights
Increase
Decrease
1, 201931, 2020
FilingShare acquisition
company
rights as stock options(Parent)
Total-

Balance as ofMar. 31, 2020
(Millions of
yen)
224
224

3. Dividends(1) Dividend payment
Resolution

Type of share

Board of Directors’ meetingon May 9, 2019
Board of Directors’ meetingon Nov. 1, 2019

Commonstock
Commonstock

Total dividends(Millions of yen)

Dividend pershare (Yen)Record date

Effective date

1,190

40

Mar. 31, 2019

Jun. 24, 2019

892

30

Sep. 30, 2019

Dec. 2, 2019(2) Dividends with a record date in FY3/20 but an effective date in FY3/21
Type of
Total dividends
Source of
Resolution
share(Millions of yen)funds
Board of Directors’ meeting
CommonRetained
1,184
on May 12, 2020
stock
earnings

Dividend pershare (Yen)Record date

Effective date

40

Mar. 31, 2020

Jun. 24, 2020

Notes to Consolidated Statement of Cash Flows* Reconciliation of cash and cash equivalents at the end of the fiscal year and amounts in the cons olidated balance sheet(Millions of yen)
FY3/19FY3/20(Apr. 1, 2018 to Mar. 31, 2019) (Apr. 1, 2019 to Mar. 31, 2020)
Cash and deposits
36,84332,650Trust beneficiary rights included in current assets and

1,000

8,500

Time deposits with maturities over three months(5,527)(6,491)

Cash and cash equivalents

32,31634,658other items

22

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/20

Segment Information
1. Overview of reportable segments
Segments used for financial reporting are the Yodogawa Steel Group’s constituent units for which separate
financial information is available and for which the Board of Directors performs periodic studies for the purposesof determining the allocation of resources and evaluating performance.
The Yodogawa Steel Group has business divisions based on the products and serv ices of Yodogawa Steel and its
consolidated subsidiaries. Each division determines strategies and conducts business operations for its products
and services. Accordingly, the Yodogawa Steel Group is composed of segments classified by products or services
based on the business divisions and there are four reportable segments: Steel Sheet -related business, Rollbusiness, Grating business and Real Estate business.
The Steel Sheet-related business manufactures and sells cold-rolled steel sheets, steel strips, plated steel sheets,galvanized steel sheets and other steel sheets, manufactures and sells building materials (roofing and printed
products, liner panels, siding and other products) and exterior products (storage sheds, garages, bicycle parking
units, trash receptacles and other products), and performs design and contracting for construction. The Rollbusiness manufactures and sells rolls for section steel, rolls for non -ferrous metals and other products. The
Grating business manufactures and sells gratings. The Real Estate business is engaged in leasing and buying andselling buildings, parking lots and other real estate.
2. Calculation method for net sales, profit/loss, assets, and other items for each reportable segment
The accounting methods for reportable segments are generally the same as those listed in “Significant Accounting
Policies in the Preparation of Consolidated Financial Statements.”
3. Information related to net sales, profit/loss, assets, and other items for each reportable segment
FY3/19 (Apr. 1, 2018 to Mar. 31, 2019)
Reportable segments
Steel
Roll
Sheet-related
Business
Business

Grating
BusinessReal
EstateBusiness

Total

Others(Note 1)

Total

(Millions of yen)Amounts
shown on the
Adjustment consolidated
financialstatements

Net sales
External sales
Inter-segment
sales and transfers
Total
Segment profit(loss)

155,123

3,500

3,554

1,183

163,361

-

-

-

442

442

155,123

3,500

3,554

1,625

163,803

6,052

(77)

84

830

6,888

Segment assets

146,795

5,424

3,237

9,569

165,026

4,057 167,419-

167,419

2,950(2,950)-6,566 170,370(2,950)Note 2(1,254)Note 434,823

167,419
Note 3
5,879

2,508

245

7,134

9,614 174,641

209,465

Other items
3,371
97
67
125
3,662
341
4,003
53
4,056
Depreciation
Investment in
4,629
403
3
5,036
5,036
5,036
equity-method
affiliates
Increases inproperty, plant
Note 5
1,984
26
32
141
2,184
168
2,353
2,424
and equipment
71
and intangible
assets
Notes: 1. Others represent businesses which are not included in any of the reportable segments and mainly consist oftransportation, warehouse, golf course, machinery plant, electric power (sale of solar power) and other businesses.
2. The adjustment to segment profit (loss) includes unallocated expenses of (1,253) million yen and an elimination
for inter-segment transactions of (1) million yen.
3. Segment profit (loss) is adjusted to be consistent with the operating profit on the consolidated statement ofincome.
4. The adjustment to segment assets includes corporate assets of 35,161 million yen and an elimination forinter-segment transactions of (337) million yen.
5. The adjustment of 71 million yen to increases in property, plant and equipment and intangible assets is capital
expenditures mainly for corporate tools, furniture and fixtures.

23

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/20

FY3/20 (Apr. 1, 2019 to Mar. 31, 2020)
Reportable segments
Steel
Roll
Sheet-related
Business
Business

Grating
BusinessReal
EstateBusiness

Total

Others(Note 1)

Total

(Millions of yen)Amounts
shown on the
Adjustment consolidated
financialstatements

Net sales
External sales
Inter-segment
sales and transfers
Total
Segment profit(loss)

142,418

2,833

3,481

1,205

149,939

-

-

-

442

442

142,418

2,833

3,481

1,647

150,381

5,898

(311)

80

847

6,515

Segment assets

142,409

4,345

3,278

9,279

159,312

4,127 154,066-

154,066

2,774(2,774)-6,460 156,841(2,774)Note 2(1,213)Note 432,707

154,066
Note 3
5,489

2,332

186

6,702

9,105 168,417

201,125

Other items
3,142
93
57
132
3,424
304
3,729
59
3,788
Depreciation
Investment in
4,911
406
3
5,321
5,321
5,321
equity-method
affiliates
Increases inproperty, plant
Note 5
1,889
130
2
101
2,123
184
2,308
2,538
and equipment
230
and intangible
assets
Notes: 1. Others represent businesses which are not included in any of the reportable se gments and mainly consist oftransportation, warehouse, golf course, machinery plant, electric power (sale of solar power) and other businesses.
2. The adjustment to segment profit (loss) includes unallocated expenses of (1,214) million yen and an elimination
for inter-segment transactions of 1 million yen.
3. Segment profit (loss) is adjusted to be consistent with the operating profit on the consolidated statement ofincome.
4. The adjustment to segment assets includes corporate assets of 32,976 million yen and an elimination forinter-segment transactions of (269) million yen.
5. The adjustment of 230 million yen to increases in property, plant and equipment and intangible assets is capital
expenditures mainly for corporate tools, furniture and fixtures.

24

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/20

Per-share Information(Yen)
FY3/19(Apr. 1, 2018 to Mar. 31, 2019)

FY3/20(Apr. 1, 2019 to Mar. 31, 2020)

Net assets per share

5,096.96

5,115.92

Net income per share

211.08131.14

Diluted net income per share210.20Note: Basis for calculation of net income per share and diluted net income per share is as follows.

130.60FY3/19(Apr. 1, 2018 to Mar. 31, 2019)

FY3/20(Apr. 1, 2019 to Mar. 31, 2020)

6,254

3,862

-

-

6,254

3,862

29,631

29,453

-

-

123

121

[123]

[121]

Net income per share
Profit attributable to owners of parent(Millions of yen)Amount not available to common shareholders(Millions of yen)
Profit attributable to common shareholders of parent(Millions of yen)
Average number of common shares outstanding
during period (Thousands of shares)
Diluted net income per share
Adjustment to profit attributable to owners of parent(Millions of yen)
Increase in the number of common shares (Thousandsof shares)[of which share acquisition rights (Thousands ofshares)]Summary of potential stock not included in thecalculation of diluted net income per share since there
was no dilutive effect-

Subsequent Events
Not applicable.

25

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/20

4. Non-consolidated Financial Statements(1) Non-consolidated Balance Sheet
FY3/19(as of Mar. 31, 2019)(Millions of yen)
FY3/20(as of Mar. 31, 2020)

AssetsCurrent assets
Cash and deposits

20,306

14,657

Notes receivable-trade

2,360

2,007

Accounts receivable-trade

37,01033,153

Securities

2,075

8,577

Merchandise and finished goods

12,591

12,652Work in process

3,506

3,041

Raw materials and supplies

6,492

6,188

Prepaid expenses

66

57

Other

957

1,235

Allowance for doubtful accounts
Total current assets

(3)

(3)

85,36481,567

7,495

7,335

Non-current assets
Property, plant and equipment
Buildings
Structures
Machinery and equipment

743

693

5,519

4,906

Vehicles49

34

Tools, furniture and fixtures

396

354

13,586

13,851

183

187

27,97327,363

Software

105

181

Other

512

597

Total intangible assets

618

778

Investment securities

31,12727,476

Shares of subsidiaries and associates

27,90327,896Long-term loans receivable

329

1,224

Other

263

231

Land
Construction in progress
Total property, plant and equipment
Intangible assets

Investments and other assets

Allowance for doubtful accounts

(0)

(0)

Total investments and other assets

59,62456,83088,216

84,972

173,580

166,540

Total non-current assets
Total assets

26

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/20(Millions of yen)
FY3/20(as of Mar. 31, 2020)

FY3/19(as of Mar. 31, 2019)
Liabilities
Current liabilities
Notes payable-trade
Electronically recorded obligations-operating

2,990

3

-

2,340

Accounts payable-trade

11,518

7,864

Short-term borrowings

1,940

1,940

Accounts payable-other

819

337

Accrued expenses

2,278

1,976

Income taxes payable

1,576

124

Advances received

131

108

Deposits received

173

96

Provision for bonuses

841

793

Other

1,505

798

Total current liabilities

23,775

16,383

Provision for retirement benefits

5,504

5,691

Long-term guarantee deposited

1,280

1,330

Deferred tax liabilities

2,632

2,237

244

246

Non-current liabilities

Asset retirement obligations
Other
Total non-current liabilities
Total liabilities

287

283

9,948

9,789

33,724

26,17323,22023,220Net assets
Shareholders’ equity
Share capital
Capital surplus
Legal capital surplus

5,805

5,805

Other capital surplus

15,565

15,562

Total capital surpluses

21,37021,367

Reserve for advanced depreciation of non-current assets

897

863

Reserve for special depreciation

363

232

General reserve

71,382

71,382Retained earnings brought forward

24,60027,20597,242

99,683

Treasury shares(14,225)(14,512)

Total shareholders’ equity

127,608

129,759

Valuation difference on available-for-sale securities

12,037

10,383

Total valuation and translation adjustments

12,037

10,383210

224

139,856

140,367

173,580

166,540

Retained earnings
Other retained earnings

Total retained earnings

Valuation and translation adjustments

Share acquisition rights
Total net assets
Total liabilities and net assets

27

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/20(2) Non-consolidated Statement of Income
FY3/19(Apr. 1, 2018 to Mar. 31, 2019)(Millions of yen)
FY3/20(Apr. 1, 2019 to Mar. 31, 2020)

Net sales

110,332

102,602

Cost of sales

90,09582,857Gross profit

20,236

19,745

Selling, general and administrative expenses

13,904

13,804

Operating profit

6,331

5,940

Non-operating income
Interest income

311

277

Dividend income

2,017

1,043

Gain on sales of investment securities

2,046

1,028

Other
Total non-operating income

178

156

4,553

2,505

64

64

Non-operating expenses
Interest expenses

-

302

Other

263

315

Total non-operating expenses

327

683

10,558

7,763

Gain on sales of non-current assets-

0

Insurance claim income

43

104

Total extraordinary income

43

104

Loss on sales and retirement of non-current assets

31

62

Loss on valuation of investment securities

44

1,581

Impairment loss

20

Loss on disaster

Loss on valuation of derivatives

Ordinary profit
Extraordinary income

Extraordinary losses

617

30

Loss on valuation of shares of subsidiaries andassociates

1,389

-

Total extraordinary losses

2,086

1,676

Profit before income taxes

8,515

6,191

Income taxes-current

2,965

1,513

Income taxes-deferred

(341)

154

Total income taxes

2,623

1,667

Profit

5,891

4,524

28

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/20(3) Non-consolidated Statement of Changes in Equity
FY3/19 (Apr. 1, 2018 to Mar. 31, 2019)(Millions of yen)
Shareholders’ equity
Capital surplus

Retained earnings
Other retained earnings

SharecapitalLegalcapitalsurplus

Othercapitalsurplus23,2205,805

15,582

Balance at
beginning of period
Changes during
periodReversal ofreserve for tax
purpose reduction
entry ofnon-current assets
Reversal ofreserve for special
depreciation
Dividends ofsurplusProfitPurchase oftreasury shares
Disposal oftreasury shares
Net changes in
items other thanshareholders’equityTotal changes
during period
Balance at end of
periodTotal
capitalsurplus21,387

Reserve fortax purpose
reduction
entry ofnon-current
assets931

Reserve forGeneralspecialreservedepreciation

499

71,382Retainedearnings
brought
forwardTotal
retainedearnings

20,63393,447

34

-

136

-

(2,095)(2,095)

5,891

5,891

(34)

(136)

(17)

(17)

-

-

(17)

(17)

(34)

(136)

-

3,966

3,795

23,2205,805

15,565

21,370897

363

71,382

24,60097,242

Shareholders’ equity
Valuation and translation adjustments
Total
Valuation difference Total valuation
Treasuryshareholders’ on available-for-sale and translation
sharesequitysecurities
adjustments
Balance at beginning of
periodChanges during period
Reversal of reserve fortax purpose reduction
entry of non-current
assets
Reversal of reserve for
special depreciation
Dividends of surplus
ProfitPurchase of treasury
shares
Disposal of treasury
sharesNet changes in items otherthan shareholders’ equity
Total changes during
periodBalance at end of period(13,846)

124,209

16,09316,093

Shareacquisitionrights223

Total net assets

140,526

-

-

-

-

(2,095)(2,095)

5,891

5,891

(440)

(440)

(440)

61

43

43
(4,055)(4,055)(13)(4,069)

(379)

3,399

(4,055)(4,055)

(13)

(669)

(14,225)

127,608

12,037

12,037

210

139,856

29

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/20

FY3/20 (Apr. 1, 2019 to Mar. 31, 2020)(Millions of yen)
Shareholders’ equity
Capital surplus

Retained earnings
Other retained earnings

Balance at beginningof period
Changes during
periodReversal of reserve
for tax purpose
reduction entry of
non-current assets
Reversal of reserve
for special
depreciation
Dividends ofsurplusProfitPurchase oftreasury shares
Disposal oftreasury shares
Net changes in
items other thanshareholders’equityTotal changes during
periodBalance at end ofcurrent period

SharecapitalLegalcapitalsurplus

Othercapitalsurplus23,2205,805

15,565

Total
capitalsurplus21,370Reserve fortax purpose
reduction
entry ofnon-current
assets897

Reserve forGeneralspecialreservedepreciation

363

71,382Retainedearnings
brought
forwardTotal
retainedearnings

24,60097,242

34

-

130

-

(2,083)(2,083)

4,524

4,524

(34)

(130)

(3)

(3)

-

-

(3)

(3)

(34)

(130)

-

2,605

2,440

23,2205,805

15,562

21,367863

232

71,382

27,205

99,683

Shareholders’ equity
Valuation and translation adjustments
Total
Valuation difference Total valuation
Treasuryshareholders’ on available-for-sale and translation
sharesequitysecurities
adjustments
Balance at beginning of
periodChanges during period
Reversal of reserve for tax
purpose reduction entry of
non-current assets
Reversal of reserve for
special depreciation
Dividends of surplus
ProfitPurchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other than shareholders’equityTotal changes during
periodBalance at end of period(14,225)

127,608

12,037

12,037

ShareacquisitionrightsTotal net assets

210

139,856

-

-

-

-

(2,083)(2,083)

4,524

4,524

(297)

(297)

(297)

10

6

6
(1,653)(1,653)13(1,639)

(287)

2,150

(1,653)(1,653)13

510(14,512)

129,759

10,383

10,383

224

140,367

This summary report is solely a translation of “Kessan Tanshin” (in Japanese, including the attachments), which has been
prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers
who prefer an English translation.

30