February 1, 2019

Summary of the Consolidated Financial Results for the Third Quarterof the Fiscal Year Ending March 31, 2019 (FY3/19)(Nine Months Ended December 31, 2018)[Japanese GAAP]
Company name:

Yodogawa Steel Works, Ltd.
Stock exchange listed: Tokyo, 1st Section
Stock code:
5451
URL: http://www.yodoko.co.jp/
Representative:
Satoshi Nitta, President and Representative Director
Inquiries:
Yasunori Osumi, Executive Officer, General Manager of IR Department
Tel: +(81)6-6245-1113
Scheduled date of filing of Quarterly Report:
February 8, 2019
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results: None
Holding of quarterly financial results meeting:None(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Third Quarter (April 1, 2018 to December 31, 2018) of FY3/19(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales

Operating profit

Millions of yen

Nine months ended Dec. 31, 2018
Nine months ended Dec. 31, 2017

% Millions of yen

127,088
129,690

Note: Comprehensive income (millions of yen):

(2.0)
16.0

4,910
8,795

% Millions of yen(44.2)(9.4)

6,979
10,057

Nine months ended Dec. 31, 2018:
Nine months ended Dec. 31, 2017:% Millions of yen(30.6)
(0.5)

4,199
6,052

%

(30.6)
26.3(632) (-%)
12,377 (up 204.4%)

Diluted net income
per share

Net income per share
Nine months ended Dec. 31, 2018
Nine months ended Dec. 31, 2017

Profit attributable toowners of parent

Ordinary profit

Yen

Yen

141.60203.87141.00203.02(2) Consolidated financial position
Total assets

Shareholders’ equity ratio

Net assets

Millions of yen

Millions of yen%

208,213215,638

166,885
170,574

71.6
70.3

As of Dec. 31, 2018
As of Mar. 31, 2018

Reference: Shareholders’ equity (millions of yen):
As of Dec. 31, 2018: 149,116
As of Mar. 31, 2018: 151,586
Starting with the beginning of the first quarter of the current fiscal year, Yodogawa Steel Works is applying “Partial Amendments to
Accounting Standard for Tax Effect Accounting” (Accounting Standards Board of Japan (ASBJ) Statement No. 28, February 16, 201 8).
Prior-year figures have been adjusted retroactively to conform with this accounting standard.

2. Dividends
1Q-endDividend per share
3Q-end2Q-endYear-end

Total

Yen

Yen

Yen

Yen

Yen

-

35.00
30.00

-

40.00

75.00

35.00

65.00

Fiscal year ended Mar. 31, 2018
Fiscal year ending Mar. 31, 2019
Fiscal year ending Mar. 31, 2019
(Forecast)

Note: Revisions to the most recently announced dividend forecast: Yes
For further details, please refer to the press release dated today (February 1, 2019) about earnings forecast and dividend fo recast(Japanese version only).

3. Consolidated Forecasts for FY3/19 (April 1, 2018 to March 31, 2019)
Net sales
Full year(Percentages represent year-on-year changes)
Profit attributable to
Net income
Ordinary profit
owners of parent
per share

Operating profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

167,000

(3.9)

6,000

(44.7)

8,200(33.3)

4,800(34.8)

161.83

Note: Revisions to the most recently announced consolidated earnings forecast: Yes
For further details, please refer to “1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation ofConsolidated Forecast and Other Forward-looking Statements” on page 4 and the press release dated today (February 1, 2019) about
earnings forecast and dividend forecast (Japanese version only).

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): None
(2) Application of special accounting methods for presenting quarterly consolidated financial statements: None
(3) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: None
4) Restatements: None

(4) Number of outstanding shares (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
As of Dec. 31, 2018:35,837,230 shares

As of Mar. 31, 2018:35,837,230 shares

As of Mar. 31, 2018:

6,185,228 shares

Nine months ended Dec. 31, 2017:

29,689,665 shares

2) Number of treasury shares at the end of the period
As of Dec. 31, 2018:

6,171,735 shares

3) Average number of shares outstanding during the period
Nine months ended Dec. 31, 2018:

29,658,698 shares* The current quarterly financial report is not subject to quarterly review 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 theCompany’s management at the time the materials were prepared. These materials are not promises by the Company regarding
future performance. Actual results may differ significantly from these forecasts for a number of reasons. For a discussion of theassumptions for forecasts, precautions concerning usage and other information, please refer to “1. Qualitative Information on
Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated Forecast and Other Forward -looking
Statements” on page 4.

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 3Q of FY3/19

Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Performance2(1) Explanation of Results of Operations

2(2) Explanation of Financial Position

3(3) Explanation of Consolidated Forecast and Other Forward-looking Statements

4

2. Quarterly Consolidated Financial Statements and Notes

5(1) Quarterly Consolidated Balance Sheet

5(2) Quarterly Consolidated Statements of Income and Comprehensive Income

6

Quarterly Consolidated Statement of Income
For the Nine-month Period

6

Quarterly Consolidated Statement of Comprehensive Income
For the Nine-month Period

7(3) Notes to Quarterly Consolidated Financial Statements

8

Going-concern Assumption

8

Significant Changes in Shareholders’ Equity

8

Segment and Other Information

8

1

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 3Q of FY3/19

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first nine months of the fiscal year ending March 31, 2019, although natural disasters briefly caused economic
activity to decline, the Japanese economy continued to recover slowly with the support of strong domestic demand.
The U.S. economy remained healthy in 2018 in part because of the benefits of tax reductions. In Europe and China,
economic growth rates are decreasing because of trade friction and other reasons.
In the Japanese steel industry, the business environment has been favorable because of the growth of automobile
production, higher demand for steel for building materials associated with projects for the 2020 Tokyo Olympics, thehigh volume of industrial machinery production and other reasons.
In the global steel market, a downturn has started due to U.S. restrictions on steel imports and other developments.
The Yodogawa Steel Group’s net sales in the first nine months decreased 2,602 million yen to 127,088 million yen.
Operating profit decreased 3,884 million yen to 4,910 million yen, ordinary profit decreased 3,078 million yen to6,979 million yen, and profit attributable to owners of parent decreased 1,853 million yen to 4,199 million yen.
In Japan, sales volume of plated steel sheets for building materials decreased because of sales activities that placed
priority on profitability. But total sales in Japan were higher because of progress with price revisions. Earnings
decreased mainly because of the higher cost of primary raw materials and the smaller benefit from valuation gains
on inventories than in the first nine months of the previous fiscal year.
Overseas sales and earnings declined. This was caused primarily by the challenging business climate for sales within
Taiwan and exports of Sheng Yu Steel Co., Ltd. (SYSCO), a subsidiary in Taiwan.
Results by business segment are as follows.
1) Steel Sheet-related BusinessNet sales totaled 117,917 million yen and operating profit was 4,922 million yen.
Steel Sheet Segment
In Japan, the sales volume of pre-painted sheets increased mainly because of strong sales of home appliances and thehigh level of demand for building materials for typhoon recovery and reconstruction activities and for construction
projects for the 2020 Tokyo Olympics. However, the sales volume was down for plated steel sheets sold to specifichigh-demand customers and for retail sales for general distribution. The main reason was the policy of conducting
sales activities with emphasis on profitability.
At Taiwan subsidiary SYSCO, sales and earnings declined because of a decrease in the sales volume caused mainly
by U.S. trade protectionism. In addition, sales were down at subsidiaries Yodogawa-Shengyu (Hefei) High-Tech
Steel Co., Ltd. (YSS) in China and PCM Processing (Thailand) Ltd. (PPT) in Thailand as price revisions did not
keep up with the upturn in the cost of primary raw materials.
Building Material & Exterior Products Segment
In the building materials category, the sales volume of core roofing products decreased because of sales activities
that placed priority on profitability. But total sales in this category were higher mainly because of the increasing useof YODO fire-proof panel Grand Wall at factories and warehouses. In the exterior products category, a series ofnatural disasters in September kept sales flat but total sales increased because of strong consumer spending. Since
sales in the first nine months of the previous fiscal year benefited from large projects for the installation of Grand
Wall, construction sales were down even though orders were generally strong for logistics, manufact uring and otherfacilities.
As a result, total sales in the steel sheet-related business were lower than one year earlier.

2

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 3Q of FY3/19

2) Roll BusinessNet sales totaled 2,544 million yen and operating loss was 27 million yen.
Sales decreased because of damage at some production facilities caused by Typhoon No. 21 and problems created by
improper activities involving the quality of roll products.
3) Grating BusinessNet sales totaled 2,583 million yen and operating profit was 47 million yen.
Although there was progress with price revisions, sales decreased because of the ongoing weakness in the highway
construction sector as natural disaster recovery activities receive priority in public -works expenditures.
4) Real Estate BusinessNet sales totaled 884 million yen and operating profit was 608 million yen.
Sales increased because of a higher occupancy rate at tenant-occupied buildings and higher sales at other leased
properties.
5) Other Businesses
Net sales totaled 3,158 million yen and operating profit was 273 million yen.
Higher sales in material sales operations raised sales in this segment.
(2) Explanation of Financial Position
AssetsCurrent assets decreased by 461 million yen from the end of the previous fiscal year to 116,197 million yen. This
was attributable mainly to a decrease of 1,922 million yen in cash and deposits, an increase of 2,348 million yen innotes and accounts receivable-trade, and a decrease of 810 million yen in inventories.
Non-current assets decreased by 6,963 million yen from the end of the previous fiscal year to 92,016 million yen.
This was mainly attributable to decreases of 5,669 million yen in investment securities and 1,440 million yen inproperty, plant and equipment.
Total assets decreased by 7,425 million yen from the end of the previous fiscal year to 208,213 million yen.
Liabilities
Current liabilities decreased by 2,195 million yen from the end of the previous fiscal year to 26,052 million yen.
This was attributable mainly to a decrease of 1,683 million yen in income taxes payable.
Non-current liabilities decreased by 1,541 million yen from the end of the previous fiscal year to 15,276 million yen.
This was attributable mainly to a decrease of 1,350 million yen in deferred tax liabilities included in othernon-current liabilities.
Total liabilities decreased by 3,736 million yen from the end of the previous fiscal year to 41,328 million yen.
Net assets
Net assets decreased by 3,688 million yen from the end of the previous fiscal year to 166,885 million yen. This was
attributable mainly to an increase of 2,130 million yen in retained earnings, and decreases of 4,080 million yen invaluation difference on available-for-sale securities and 1,222 million yen in non-controlling interests.

3

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 3Q of FY3/19(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
The U.S. economy is remaining healthy but economic growth rates are low in Europe and China. The economic
outlook is becoming increasingly uncertain due to U.S.-China trade friction and other global trade problems, worries
about slowing economic growth in emerging countries, and the effects of Britain’s departure from the European
Union.
In Japan, the economy is expected to remain healthy as the negative effects of natural disasters decline and the labormarket remains strong. But the pace of Japan’s economic recovery is likely to decrease in part due to a downturn inexports caused by slowing economic growth in China.
In the steel industry, market conditions are expected to remain firm in Japan. But the outlook for overseas steelmarkets is unclear due to U.S. restrictions on steel imports and other sources of concern. At the Yodogawa SteelGroup, capturing orders is difficult for overseas subsidiaries because of increasingly widespread trade protectionism.
Furthermore, prices of hot-rolled steel sheets, zinc and other raw materials are expected to remain high. As a result,
we expect significant negative pressure on earnings to continue.
To achieve the goals of the Yodogawa Steel Group Medium-Term Management Plan 2019, all companies areworking on becoming more profitable. Companies are establishing positions in new markets and increasing sales ofvalue-added products while taking full advantage of the speed and flexibility that are key strengths of the Yodogawa
Steel Group.
The forecast for consolidated performance in the current fiscal year is based on this outlook for the economy andsteel market.

4

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 3Q of FY3/19

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
FY3/18(as of Mar. 31, 2018)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Other
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Provision for directors’ retirement benefits
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

5(Millions of yen)
Third quarter of FY3/19(as of Dec. 31, 2018)

30,71643,9382,888
16,081
4,684
13,122
5,376(149)
116,658

28,79446,287
3,185
15,334
4,445
13,297
5,001(149)
116,197

50,50949,069

7
1,475
1,482

4
1,440
1,444

46,338649
46,98798,980215,638

40,669833
41,50392,016208,213

18,154
2,165
1,056
6,870
28,24718,003
306
481
709
6,551
26,052

66
7,569
9,181
16,81745,064

63
7,580
7,631
15,276
41,32823,22020,393
100,775(12,679)
131,710

23,22020,385102,906(12,648)
133,863

16,420
1,646
2,798
(990)
19,875223
18,764
170,574
215,638

12,340
1,639
2,056
(783)
15,252
226
17,542
166,885
208,213

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 3Q of FY3/19(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statement of Income)(For the Nine-month Period)(Millions of yen)First nine months of FY3/19(Apr. 1, 2018 to Dec. 31, 2018)

First nine months of FY3/18(Apr. 1, 2017 to Dec. 31, 2017)
Net sales

129,690127,088

Cost of sales

107,390

109,163

Gross profit

22,29917,924

Selling, general and administrative expenses

13,50413,013Operating profit

8,795

4,910

Interest income

306

428

Dividend income

746

815

-

123

146

466

280

270

297

243

1,777

2,347

Interest expenses

84

60

Foreign exchange losses
Cost for employees transferred temporarily tooverseas subsidiaries
Arbitration settlement cost

69

-

199

160

120

-

Non-operating income

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

Other

40

57

Total non-operating expenses

514

278

10,057

6,979

Gain on sales of non-current assets

1-

Gain on sales of investment securities

23-

Insurance income-

47

Total extraordinary income

24

47

86

31

3

2

Loss on disaster-

585

Loss on valuation of investment securities
Loss on liquidation of subsidiaries andassociates
Other

86

42

33

-

-

0

Total extraordinary losses

209

661

Profit before income taxes

9,872

6,365

Income taxes-current

2,445

2,011

Income taxes-deferred

227

(119)

Total income taxes

2,673

1,892

Profit

7,199

4,473

Profit attributable to non-controlling interests

1,146

273

Profit attributable to owners of parent

6,052

4,199

Ordinary profit
Extraordinary income

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

6

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 3Q of FY3/19(Quarterly Consolidated Statement of Comprehensive Income)(For the Nine-month Period)First nine months of FY3/18(Apr. 1, 2017 to Dec. 31, 2017)(Millions of yen)First nine months of FY3/19(Apr. 1, 2018 to Dec. 31, 2018)

Profit

7,199

4,473

Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges

3,824(4,135)

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

7

(0)

-

985

(1,156)

307

252

60

(65)

5,178

(5,105)

12,377(632)

10,782

(416)

1,595

(215)

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 3Q of FY3/19(3) Notes to Quarterly Consolidated Financial Statements
Going-concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Not applicable.
Segment and Other Information
Segment information
I. First nine months of FY3/18 (Apr. 1, 2017 to Dec. 31, 2017)
Information related to net sales and profit/loss for each reportable segment
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(Note 2)statement ofincome(Note 3)

Net sales
External sales
Inter-segment
sales and transfers
Total

120,848

2,645

2,593

787

126,874

2,816

129,690-

129,690

-

-

-

331

331

1,992

2,323

(2,323)-

120,848

2,645

2,593

1,118

127,206

4,808

132,014(2,323)

129,690

Segment profit
8,684
110
84
545
9,425
256
9,681
(886)
8,795
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 includes unallocated expenses of (888) million yen and an elimination forinter-segment transactions of 2 million yen.
3. Segment profit is adjusted to be consistent with the operating profit on the quarterly consolidated statement ofincome.

II. First nine months of FY3/19 (Apr. 1, 2018 to Dec. 31, 2018)
Information related to net sales and profit/loss for each reportable segment
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(Note 2)statement ofincome(Note 3)

Net sales
External sales
117,9172,544
2,583
884 123,930
3,158 127,088
127,088
Inter-segment
331
331
1,841
2,172
(2,172)
sales and transfers
Total
117,9172,544
2,583
1,216 124,261
4,999 129,261(2,172)
127,088
Segment profit
4,922
(27)
47
608
5,550
273
5,824
(913)
4,910
(loss)
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 (914) million yen and an elimination forinter-segment transactions of 1 million yen.
3. Segment profit (loss) is adjusted to be consistent with the operating profit on the quarterly consolidated statement ofincome.
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.
8