August 4, 2022

Summary of the Consolidated Financial Results for the First Quarterof the Fiscal Year Ending March 31, 2023 (FY3/23)(Three Months Ended June 30, 2022)[Japanese GAAP]
Company name:

Yodogawa Steel Works, Ltd.
Listing: Tokyo Stock Exchange
5451
URL: https://www.yodoko.co.jp/
Satoshi Nitta, President and Representative Director
Takayuki Deguchi, General Manager of IR Department
Tel: +(81)6-6245-1113
Scheduled date of filing of Quarterly Report:
August 10, 2022
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results: None
Holding of quarterly financial results meeting:
None
Stock code:
Representative:
Inquiries:(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Quarter (April 1, 2022 to June 30, 2022) of FY3/23(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales

Operating profit

Millions of yen% Millions of yen

57,63244,048Three months ended Jun. 30, 2022
Three months ended Jun. 30, 2021

Note: Comprehensive income (millions of yen):

30.8
28.2

30.4
66.1

% Millions of yen

5,978
4,155

Three months ended Jun. 30, 2022:
Three months ended Jun. 30, 2021:

43.9
50.1

%

3,343
2,460

35.9
34.6

3,172 (down 25.0%)
4,228 (up 16.1%)

Diluted net income
per share

Net income per share
Three months ended Jun. 30, 2022
Three months ended Jun. 30, 2021

% Millions of yen

4,027
3,087

Profit attributable toowners of parent

Ordinary profit

Yen

Yen

115.9585.46

115.5785.09(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Shareholders’ equity ratio

Millions of yen

As of Jun. 30, 2022
241,580
244,671
As of Mar. 31, 2022
Reference: Shareholders’ equity (millions of yen): As of Jun. 30, 2022:%

193,074
191,937
170,32270.5
69.6
As of Mar. 31, 2022: 170,296

2. Dividends
1Q-endDividend per share
3Q-end2Q-endYen

Year-end

Total

Yen

Yen

Yen

Yen

Fiscal year ended Mar. 31, 2022
35.00
Fiscal year ending Mar. 31, 2023
Fiscal year ending Mar. 31, 2023
40.00
(Forecast)
Note: Revisions to the most recently announced dividend forecast: Yes

-

67.00

102.00---

There is currently no dividend forecast for the fiscal year ending March 31, 2023. For further details, please refer to the press release

dated today (August 4, 2022) about earnings forecast and dividend forecast (Japanese version only).

3. Consolidated Forecasts for FY3/23 (April 1, 2022 to March 31, 2023)
Net sales
Millions of yen(Percentages represent year-on-year changes)
Profit attributable to
Net income
Ordinary profit
owners of parent
per share

Operating profit%

Millions of yen%

Yen

First half
115,000
22.5
9,000
59.0
11,000
54.1
Full year
Note: Revisions to the most recently announced consolidated earnings forecast: Yes%

Millions of yen%

Millions of yen

6,000
-

46.0
-

208.06-

No consolidated forecast for the fiscal year ending March 31, 2023 is shown because of the difficulty of determining a reliable
forecast. For further details, please refer to “1. Qualitative Information on Quarterly Consolidated Financial Performance, (3)Explanation of Consolidated Forecast and Other Forward-looking Statements” on page 3 and the press release dated today(August 4, 2022) 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 Jun. 30, 2022:

34,837,230 shares

As of Mar. 31, 2022:

34,837,230 shares

As of Mar. 31, 2022:

6,008,176 shares

Three months ended Jun. 30, 2021:

28,787,581 shares

2) Number of treasury shares at the end of the period
As of Jun. 30, 2022:

5,997,389 shares

3) Average number of shares outstanding during the period
Three months ended Jun. 30, 2022:

28,835,661 shares* The current quarterly financial report is not subject to quarterly review by certified public ac countants 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.
Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated Forecast and Other
Forward-looking Statements” on page 3.

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/23

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

7

Quarterly Consolidated Statement of Income
For the Three-month Period

7

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

8(3) Notes to Quarterly Consolidated Financial Statements

9

Going-concern Assumption

9

Significant Changes in Shareholders’ Equity

9

Notes to Quarterly Consolidated Balance Sheet

9

Segment and Other Information

10

1

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/23

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
During the first quarter of the fiscal year ending March 31, 2023, there was a broad-based economic recovery inJapan as the severity of the pandemic decreased. Despite this improvement, industrial output remains flat andthere are other signs that the economy is stalling because of the rising cost of resources and energy, caused in partby the Ukraine crisis, and restrictions on supplies of many types of materials.
In the United States, consumer spending and capital expenditures are increasing but prices are climbing steadily.
In China, there is no economic growth as the zero-COVID policy limits economic activity. In Europe, the Ukraine
crisis is disrupting supply chains and raising the cost of resources and energy. As a result, the outlook for the
global economy is becoming increasingly unclear.
In the steel industry, market conditions were sluggish in Japan despite strength in housing starts, machinery
production and other sectors because of declining automobile production caused by shortages of semiconductors
and other reasons.
In overseas steel markets, the business climate has weakened, mainly in Asia. One major cause is restrictions on
economic activity due to China’s zero-COVID policy.
The Yodogawa Steel Group’s net sales in the first quarter increased 13,584 million yen to 57,632 million yen.
Operating profit increased 939 million yen to 4,027 million yen, ordinary profit increased 1,823 million yen to5,978 million yen, and profit attributable to owners of parent increased 883 million yen to 3,343 million yen.
In Japan, sales and earnings increased mainly due to higher sales of steel sheets along wit h an improvement inselling prices.
Overseas, sales increased mainly because of higher sales at Taiwan subsidiary Sheng Yu Steel Co., Ltd. (SYSCO).
However, earnings were down at Chinese subsidiary Yodogawa Shengyu (Hefei) High -Tech Steel Co., Ltd. (YSS)
mainly because of the lack of growth in markets for this company’s products.
Business segment performance was as follows.
1) Steel Sheet-related BusinessNet sales totaled 55,372 million yen and operating profit was 4,118 million yen. Sales and earnings increased.
Steel Sheets
In Japan, there were small sales volume declines for both specific high-demand customers and general
distribution primarily because of the lack of growth in demand in the buildin g construction sector. Although thesales volume decreased, sales and earnings increased due to revision of prices of all types of steel sheets.
Overseas, SYSCO in Taiwan the sales volume of exported pre-painted sheets increased and there were
improvements in selling prices. However, operating profit was about the same as one year earlier because ofincreases in many categories of expenses. The profitability of YSS, a subsidiary in China, decreased as
lockdowns of Shanghai and other major cities based on the zero-COVID policy brought down this company’ssales volume. The first quarter performance of PCM Processing (Thailand) Ltd. (PPT), our Thai subsidiary, wasstrong because of a large sales volume of value-added products and improvements in selling prices.
Building Material & Exterior Products
Sales of exterior products increased mainly because of strong sales of storage sheds and garages and sales ofexterior building materials were higher due to revisions of YODO Roof prices and other reasons. Construction
sales decreased from one year earlier when sales included the completion of a large project.
2) Roll BusinessNet sales totaled 639 million yen and operating loss was 60 million yen.
Sales increased because sales volume of rolls used in the steel industry increased but there was an operating loss

2

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/23

due to higher expenses.
3) Grating BusinessNet sales totaled 830 million yen and operating profit was 17 million yen.
Although sales increased, primarily due to revisions of grating prices, earnings were about the same as one year
earlier.
4) Real Estate BusinessNet sales totaled 307 million yen and operating profit was 205 million yen.
Sales were almost the same as one year earlier but earnings decreased mainly because of a lower occupancy rate
at tenant-occupied buildings and an increase in depreciation.
5) Other Businesses
Net sales totaled 483 million yen and operating profit was 94 million yen.
Sales and earnings increased due to higher sales in the materials sales business and the warehousing andtransportation businesses.
(2) Explanation of Financial Position
AssetsCurrent assets increased by 625 million yen from the end of the previous fiscal year to 145,149 million yen. This
was attributable mainly to an increase of 2,605 million yen in notes and accounts receivable-trade, and contract
assets, and a decrease of 1,010 million yen in securities.
Non-current assets decreased by 3,716 million yen from the end of the previous fiscal year to 96,431 million yen.
This was mainly attributable to an increase of 648 million yen in property, plant and equipment and a decrease of
4,326 million yen in investment securities.
Total assets decreased by 3,090 million yen from the end of the previous fiscal year to 241,580 million yen.
Liabilities
Current liabilities decreased by 3,165 million yen from the end of the previous fiscal year to 34,392 million yen.
This was attributable mainly to decreases of 1,587 million yen in notes and accounts payable-trade, 684 million
yen in income taxes payable and 1,111 million yen in provision for bonuses.
Non-current liabilities decreased by 1,061 million yen from the end of the previous fiscal year to 14,113 million
yen. This was attributable mainly to a decrease of 924 million yen in deferred tax liabilities included in othernon-current liabilities.
Total liabilities decreased by 4,226 million yen from the end of the previous fiscal year to 48,506 million yen.
Net assets
Net assets increased by 1,136 million yen from the end of the previous fiscal year to 193,074 million yen. This
was attributable mainly to increases of 1,411 million yen in retained earnings, 1,207 million yen in foreign
currency translation adjustment, 1,133 million yen in non-controlling interests, and a decrease of 2,622 million
yen in valuation difference on available-for-sale securities.

3

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/23(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
The outlook for the global economy is expected to remain unclear. The prolonged conflict in Ukraine isdisrupting supply chains and raising the cost of resources and energy worldwide. Furt hermore, there is risk of an
economic downturn because of rising interest rates in the United States and Europe.
In the steel markets of Japan and other countries, there is a gap between the relatively healthy steel market in
Japan and the more lackluster steel markets in other countries. Due to this situation, the steel market, including
the balance between supply and demand, is likely to remain unstable for the time being.
The Yodogawa Steel Group as well is likely to continue to operate in a challenging business climate due to theunpredictability and instability of demand and expenses in all regions.
To succeed in this uncertain business climate, all group companies a re focusing on speed and agility concerning
both sales and production activities to respond to rapidly changing market conditions. The fiscal year ending inMarch 2023 is the final year of the Medium-term Management Plan 2022. We will continue to establish positions
in new markets and increase sales of value-added products in the plan’s final year in order to become even more
profitable.
The forecast for consolidated performance in the first half of the current fiscal year is based on this outlook forthe economy and steel market.
There is no forecast for the fiscal year ending in March 202 3 at this time because of the increasing uncertainty
about the business climate in Japan and other countries. An announcement will be made promptly once it
becomes possible to determine a reliable forecast

4

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/23

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Millions of yen)First quarter of FY3/23(as of Jun. 30, 2022)

FY3/22(as of Mar. 31, 2022)
AssetsCurrent assets
Cash and deposits

31,872

32,249Notes and accounts receivable-trade, and contract assets

53,671

56,276

Electronically recorded monetary claims-operating

3,412

4,055

Securities

2,120

1,110

Merchandise and finished goods

22,027

20,544Work in process

6,801

6,771

Raw materials and supplies

17,49918,696

Other

7,229

5,554

Allowance for doubtful accounts

(110)

(110)

144,523

145,149

Property, plant and equipment

56,45957,108Intangible assets

1,966

1,999

Investment securities

40,67836,351Retirement benefit asset

441

452

Other

601

519

Total current assets
Non-current assets

Investments and other assets

Total investments and other assets

41,721

37,323

100,147

96,431

244,671

241,580

Notes and accounts payable-trade

20,676

19,089

Electronically recorded obligations-operating

2,329

2,529

Short-term borrowings

1,320

1,506

Income taxes payable

3,590

2,906

Provision for bonuses

1,658

547

671

807

Other

7,309

7,007

Total current liabilities

37,55734,392

39

25

Total non-current assets
Total assets
Liabilities
Current liabilities

Provision for product warranties

Non-current liabilities
Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability

6,285

6,147

Other

8,851

7,940

Total non-current liabilities

15,175

14,11352,73348,506

Total liabilities

5

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/23

FY3/22(as of Mar. 31, 2022)(Millions of yen)First quarter of FY3/23(as of Jun. 30, 2022)

Net assets
Shareholders’ equity
23,220Share capital

23,220Capital surplus

18,272

18,270Retained earnings

118,475

119,887

Treasury shares(11,992)(11,967)

Total shareholders’ equity

147,977

149,411

16,174

13,551(0)(0)

Revaluation reserve for land

1,609

1,609

Foreign currency translation adjustment

4,433

5,641

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

Remeasurements of defined benefit plans
Total accumulated other comprehensive income

101

108

22,31920,911

Share acquisition rights

187

163

Non-controlling interests

21,454

22,587

Total net assets

191,937

193,074

244,671

241,580

Total liabilities and net assets

6

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/23(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statement of Income)(For the Three-month Period)(Millions of yen)First three months of FY3/23(Apr. 1, 2022 to Jun. 30, 2022)

First three months of FY3/22(Apr. 1, 2021 to Jun. 30, 2021)
Net sales

44,04857,632

Cost of sales

36,32048,173Gross profit

7,727

9,459

Selling, general and administrative expenses

4,639

5,431

Operating profit

3,087

4,027

Non-operating income
Interest income

73

111

Dividend income

360

538

Foreign exchange gains

55

244

Gain on sale of investment securities
Share of profit of entities accounted for using
equity method
Other

275

868

180

129

208

139

1,153

2,032

Interest expenses
Cost for employees transferred temporarily tooverseas subsidiaries
Other

15

23

54

47

15

10

Total non-operating expenses

85

80

4,155

5,978

Total non-operating income
Non-operating expenses

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

4

-

Other

-

0

Total extraordinary income

4

0

73

39

1

295

74

335

Extraordinary losses
Loss on sale and retirement of non-current
assetsImpairment losses
Total extraordinary losses
Profit before income taxes

4,085

5,643

Income taxes-current

694

1,457

Income taxes-deferred

343

233

Total income taxes

1,037

1,690

Profit

3,047

3,952

587

609

2,460

3,343

Profit attributable to non-controlling interests
Profit attributable to owners of parent

7

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/23(Quarterly Consolidated Statement of Comprehensive Income)(For the Three-month Period)First three months of FY3/22(Apr. 1, 2021 to Jun. 30, 2021)
Profit(Millions of yen)First three months of FY3/23(Apr. 1, 2022 to Jun. 30, 2022)

3,047

3,952

(1,032)(2,633)(0)0Foreign currency translation adjustment
Remeasurements of defined benefit plans, netof taxShare of other comprehensive income ofentities accounted for using equity method

2,210

1,855

15

10

(13)

(13)

Total other comprehensive income

1,180

(780)

4,228

3,172

2,887

1,935

1,340

1,236

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

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

8Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/23(3) Notes to Quarterly Consolidated Financial Statements
Going-concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Not applicable.
Notes to Quarterly Consolidated Balance Sheet
Contingent liabilities
Yodogawa Steel Works has determined that, depending on the location, conditions and other aspects of their use,
there have been problems involving the appearance and durability of some building exterior pre -painted steel
sheets manufactured between 2007 and 2016 that have occurred prior to the end of the expected lifetime of thesesheets. Yodogawa Steel Works has explained this problem to companies that sell these sheets and is covering
repair and other expenses.
Repair and other expenses, including expenses for problems that have occurred but where repairs and otheractivities have not been completed, are recorded as period costs. The costs of the problems involving these sheets
have not been expensed because it is not possible to determine a reliable forecast of how many problems will
occur.
There may be significant repair and other expenses involving these sheets in the coming years depending on
number of problems that occur.

9

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/23

Segment and Other Information
Segment information
I. First three months of FY3/22 (Apr. 1, 2021 to Jun. 30, 2021)
1. 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

42,108

523

809

307

43,749298

44,048-44,048

-

-

-

104

104

659

764

(764)

-

42,108

523

809

412

43,854957

44,812(764)

44,048Segment profit
3,065
4
20
214
3,304
68
3,372
(284)
3,087
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 (284) million yen and an elimination forinter-segment transactions of 0 million yen.
3. Segment profit is adjusted to be consistent with the operating profit on the quarterly consolidated statement ofincome.

II. First three months of FY3/23 (Apr. 1, 2022 to Jun. 30, 2022)
1. 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
55,372639
830
307
57,149483
57,632
57,632
Inter-segment
104
104
716
821
(821)
sales and transfers
Total
55,372639
830
412
57,253
1,200
58,453(821)
57,632
Segment profit
4,118
(60)
17
205
4,280
94
4,375
(348)
4,027
(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 bu sinesses.
2. The adjustment to segment profit (loss) includes unallocated expenses of (346) 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.

2. Information related to impairment losses on non-current assets, or goodwill, etc. for each reportable segment
Material impairment losses related to non-current assets
In the Others (golf course business) segment, impairment losses on non-current assets were recorded. The amountof the impairment losses was 295 million yen in the first three months of FY3/23.
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.

10