November 6, 2023

Summary of the Consolidated Financial Results for the Second Quarterof the Fiscal Year Ending March 31, 2024 (FY3/24)(Six Months Ended September 30, 2023)[Japanese GAAP]

Company name:

Yodogawa Steel Works, Ltd.
Listing: Tokyo Stock Exchange
5451
URL: https://www.yodoko.co.jp/english/
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:
November 10, 2023
Scheduled date of payment of dividend:
December 1, 2023
Preparation of supplementary materials for quarterly financial results:
Yes
Holding of quarterly financial results meeting:Yes (for analysts and institutional investors)
Stock code:
Representative:
Inquiries:(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Second Quarter (April 1, 2023 to September 30, 2023) of FY3/24(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales

Operating profit

Millions of yen% Millions of yen

Profit attributable toowners of parent

Ordinary profit% Millions of yen% Millions of yen

Six months ended Sep. 30, 2023
101,286 (14.5)
5,472 (33.6)
7,672(30.0)
Six months ended Sep. 30, 2022
118,525
26.3
8,235
45.5
10,96053.6
Note: Comprehensive income (millions of yen): Six months ended Sep. 30, 2023:
12,512 (up 25.2%)
Six months ended Sep. 30, 2022:
9,993 (up 50.7%)
Diluted net income
Net income per shareper share
Yen

Six months ended Sep. 30, 2023
Six months ended Sep. 30, 2022

179.06202.42

Total assets

Net assets

Millions of yen

Millions of yen

As of Sep. 30, 2023
259,621251,057
As of Mar. 31, 2023
Reference: Shareholders’ equity (millions of yen):
As of Sep. 30, 2023:
188,014
As of Mar. 31, 2023:

Yen

2Q-endShareholders’ equity ratio%

211,649
201,906

72.4
71.6

179,673

2. Dividends
1Q-end%(11.5)
42.5

Yen

179.56203.08(2) Consolidated financial position

5,185
5,858

Yen

Dividend per share
3Q-endYen

Year-end

Total

Yen

Yen

Fiscal year ended Mar. 31, 2023
–
40.00
–
71.00
111.00Fiscal year ending Mar. 31, 2024–
55.00
Fiscal year ending Mar. 31, 2024–
55.00
110.00(Forecast)
Note: Revisions to the most recently announced dividend forecast: Yes
For further details, please refer to the press release dated today (November 6, 2023) “Notice of Differences between Earnings Forecast
and Results for the First Half of FY3/24, Revision to Full-year Earnings Forecast, Dividends of Surplus (Interim Dividend), andRevision to Year-end Dividend Forecast” (Japanese version only).

3. Consolidated Forecasts for FY3/24 (April 1, 2023 to March 31, 2024)
Net sales
Millions of yen

Operating profit%

Millions of yen%(Percentages represent year-on-year changes)
Profit attributable to
Net income
Ordinary profit
owners of parent
per share

Millions of yen

Full year
205,000(7.0)
10,000 (21.0)
13,100Note: Revisions to the most recently announced consolidated earnings forecast: Yes%(25.9)

Millions of yen

8,200

%

(22.6)

Yen

283.92For further details, please refer to“1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation ofConsolidated Forecast and Other Forward-looking Statements” on page 3 and the press release dated today (November 6, 2023) “Noticeof Differences between Earnings Forecast and Results for the First Half of FY3/24, Revision to Full-year Earnings Forecast, Dividendsof Surplus (Interim Dividend), and Revision to Year-end 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 issued shares (common shares)
1) Number of shares issued at the end of the period (including treasury shares)
As of Sep. 30, 2023:

34,837,230 shares

As of Mar. 31, 2023:

34,837,230 shares

As of Mar. 31, 2023:

5,966,020 shares

Six months ended Sep. 30, 2022:

28,846,640 shares

2) Number of treasury shares at the end of the period
As of Sep. 30, 2023:

5,950,605 shares

3) Average number of shares outstanding during the period
Six months ended Sep. 30, 2023:

28,877,739 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 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.

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

3

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 Six-month Period

7

Quarterly Consolidated Statement of Comprehensive Income
For the Six-month Period(3) Notes to Quarterly Consolidated Financial Statements

8
9

Going-concern Assumption

9

Significant Changes in Shareholders’ Equity

9

Notes to Quarterly Consolidated Balance Sheet

9

Segment and Other Information

10

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
During the first half of the fiscal year ending March 31, 2024, there was a broad-based slow economic recovery inJapan as the economic activities began returning to normal due to the progress of the “With Corona” policy, suchas reclassifying COVID-19’s category from Class 2 to Class 5, categorized as a common infectious disease. Despite
this improvement, some weakness was seen in housing and non-housing starts partly due to soaring construction
material prices.
Looking at the world economy, in the United States, consumer spending remained strong while inflation was
protracted. In China, the economy is stagnating, due to worsening employment conditions and the sluggish realestate market. In addition, uncertainty is increasing due to the prolonged Ukraine crisis.
In Japan, while automobile production increased as semiconductor supply shortages have been resolved and byother factors, construction starts, including housing, and machinery production declined. Under the circumstances,order and production show declining trends in the steel industry.
In overseas steel markets, the business climate is weakening, mainly in Asian markets, due to the impact of thesteel supply-demand gap in China and other factors.
In such an environment, the Yodogawa Steel Group’s net sales for the first half decreased 17,239 million yen fromthe same period of the previous fiscal year to 101,286 million yen. Operating profit decreased 2,763 million yen
to 5,472 million yen, ordinary profit decreased 3,287 million yen to 7,672 million yen, and profit attributable toowners of parent decreased 672 million yen to 5,185 million yen.
In Japan, sales and earnings decreased year on year mainly due to lower sales of steel sheets resulting from adecline in sales volume.
Overseas, sales and earnings decreased year on year mainly due to lower sales at Taiwan subsidiary Sheng Yu SteelCo., Ltd. (SYSCO).
Business segment performance was as follows.
1) Steel Sheet-related Business
Sales and earnings decreased year on year with net sales of 96,170 million yen and operating profit of 5,382 million
yen.
Steel Sheets
In Japan, both sales and earnings decreased year on year because of sales volume declines for both specific highdemand customers and general distribution as a result of stagnant demand in the building construction sector,
despite the rise of selling prices of all types of steel sheets.
Overseas, both sales and earnings of SYSCO in Taiwan decreased year on year mainly because of declines in sales
volumes and selling prices in both export and domestic market. At Yodogawa Shengyu (Hefei) High-Tech SteelCo., Ltd. (YSS), a subsidiary in China, the sales volume increased thanks to economic normalization following thelifting of China’s zero-COVID policy. Despite this improvement, the momentum of recovery was slow andimprovement in business results was modest mainly because of the sluggish real estate market. Sales and earningsof PCM Processing (Thailand) Ltd. (PPT), a Thai subsidiary, increased chiefly because of improvement in selling
prices.
Building Materials
Sales of exterior products decreased mainly due to lower sales volume of storage sheds and sales of exterior
construction material products decreased mainly due to lower sales volume of YODO Roof.
2) Roll BusinessNet sales totaled 1,714 million yen and operating profit was 78 million yen.
Sales increased year on year and earnings improved mainly due to improved selling prices for exports.

3) Grating BusinessNet sales totaled 1,719 million yen and operating profit was 89 million yen.
Both sales and earnings rose primarily owing to improved selling prices.
4) Real Estate BusinessNet sales totaled 625 million yen and operating profit was 392 million yen.
Both sales and earnings were almost on par with the same period of the previous year.
5) Other Businesses
Net sales totaled 1,055 million yen and operating profit was 186 million yen.
Despite the increase in sales, earnings remained almost unchanged from the same period of the previous year.
(2) Explanation of Financial Position
AssetsCurrent assets increased by 3,667 million yen from the end of the previous fiscal year to 154,534 million yen. This
was attributable mainly to increase of 7,724 million yen in cash and deposits, which was partially offset bydecreases of 1,990 million yen in securities, 531 million yen in work in process, and 782 million yen in raw
materials and supplies.
Non-current assets increased by 4,897 million yen from the end of the previous fiscal year to 105,086 million yen.
This was attributable mainly to an increase of 4,440 million yen in investment securities.
Total assets increased by 8,564 million yen from the end of the previous fiscal year to 259,621 million yen.
Liabilities
Current liabilities decreased by 2,440 million yen from the end of the previous fiscal year to 32,651 million yen.
This was attributable mainly to a decrease of 2,093 million yen in notes and accounts payable-trade.
Non-current liabilities increased by 1,261 million yen from the end of the previous fiscal year to 15,320 million
yen. This was attributable mainly to an increase of 1,148 million yen in deferred tax liabilities included in othernon-current liabilities.
Total liabilities decreased by 1,178 million yen from the end of the previous fiscal year to 47,971 million yen.
Net assets
Net assets increased by 9,743 million yen from the end of the previous fiscal year to 211,649 million yen. This was
attributable mainly to increases of 3,159 million yen in retained earnings, 3,087 million yen in valuation difference
on available-for-sale securities, 2,070 million yen in foreign currency translation adjustment, and 1,401 million
yen in non-controlling interests.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
The Japanese economy is expected to recover moderately during the fiscal year 2023 mainly because of the returnof foot traffic following the downgrading of COVID-19 and easing of supply restrictions. However, the outlook
for the global economy is expected to remain extremely opaque because of the Chinese economy continuing tostall due to the sluggish real estate market, concerns about recession due to monetary tightening in the US andEurope, the prolonged situation in Ukraine, and new conflicts and turmoil over the Palestinian territories in the
Middle East.
In the steel markets in Japan and overseas, while increases in raw material prices used for steelmaking as well as
the cost of resources and energy are coming to a pause, there is an impact of the Chinese steel market on the backof the country’s stagnant economy, combined with concerns about rising geopolitical risks. Due to this situation,
the steel market, including the supply-demand balance, 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 costs in all regions.

To succeed in this uncertain business climate, all group companies are focusing on speed and agility concerning
both sales and production activities to respond to rapidly changing market conditions. At the same time, by steadily
implementing the “Yodogawa Steel Group Medium-Term Management Plan 2025,” we will work to strengthen ourearning power.
The forecast for consolidated performance of the current fiscal year is based on this outlook for the economy andsteel market.

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
FY3/23(as of Mar. 31, 2023)(Millions of yen)
Second quarter of FY3/24(as of Sep. 30, 2023)

AssetsCurrent assets
Cash and deposits

40,18947,913

Notes and accounts receivable-trade, and contract assets

49,521

49,310Electronically recorded monetary claims-operating

4,454

4,499

Securities

4,207

2,217

Merchandise and finished goods

23,28523,061Work in process

6,476

5,945

Raw materials and supplies

19,924

19,141

Other

2,961

2,597

Allowance for doubtful accounts

(152)

(152)

150,867

154,534

Property, plant and equipment

56,602

56,835Intangible assets

2,076

2,164

Investment securities

40,193

44,634Retirement benefit asset

724

778

Other

592

673

Total current assets
Non-current assets

Investments and other assets

Total investments and other assets

41,51046,085100,189

105,086

251,057

259,621

Notes and accounts payable-trade

17,881

15,788

Electronically recorded obligations-operating

2,987

2,777

Short-term borrowings

1,328

994

Income taxes payable

3,159

2,720

Provision for bonuses

1,259

1,331

971

1,656

Other

7,503

7,381

Total current liabilities

35,09232,651

32

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

5,517

5,638

Other

8,508

9,656

Total non-current liabilities

14,05815,32049,15047,971

Total liabilities

FY3/23(as of Mar. 31, 2023)(Millions of yen)
Second quarter of FY3/24(as of Sep. 30, 2023)

Net assets
Shareholders’ equity
Share capital

23,22023,220Capital surplus

18,26718,283Retained earnings

126,064

129,223

Treasury shares(11,895)(11,861)

Total shareholders’ equity

155,657

158,866

Valuation difference on available-for-sale securities

16,115

19,202

Revaluation reserve for land

1,529

1,505

Foreign currency translation adjustment

5,958

8,028

Accumulated other comprehensive income

Remeasurements of defined benefit plans
Total accumulated other comprehensive income

412

411

24,01629,148

Share acquisition rights

140

140

Non-controlling interests

22,092

23,494

Total net assets

201,906

211,649

251,057

259,621

Total liabilities and net assets

(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statement of Income)(For the Six-month Period)First six months of FY3/23(Apr. 1, 2022 to Sep. 30, 2022)(Millions of yen)First six months of FY3/24(Apr. 1, 2023 to Sep. 30, 2023)

Net sales

118,525

101,286

Cost of sales

99,662

85,466Gross profit

18,863

15,819Selling, general and administrative expenses

10,628

10,347

Operating profit

8,235

5,472

Interest income

181

265

Dividend income

730

563

Non-operating income

Foreign exchange gains

431

77

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

1,245

969

113

254

181

222

Total non-operating income

2,884

2,353

54

60

78

71

25

20

Non-operating expenses
Interest expenses
Cost for employees transferred temporarily tooverseas subsidiaries
Other
Total non-operating expenses

159

152

10,9607,672

Gain on sale of non-current assets

–

951

Other

0

–

Total extraordinary income

0

951

115

473

598

0

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on sale and retirement of non-current
assetsImpairment losses

714

474

Profit before income taxes

Total extraordinary losses

10,246

8,150

Income taxes-current

3,349

2,589

Income taxes-deferred

(437)

(194)

Total income taxes

2,911

2,395

Profit

7,334

5,754

Profit attributable to non-controlling interests

1,476

569

Profit attributable to owners of parent

5,858

5,185

(Quarterly Consolidated Statement of Comprehensive Income)(For the Six-month Period)First six months of FY3/23(Apr. 1, 2022 to Sep. 30, 2022)(Millions of yen)First six months of FY3/24(Apr. 1, 2023 to Sep. 30, 2023)

Profit

7,334

5,754

Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges(2,851)

3,051

0

–

Foreign currency translation adjustment
Remeasurements of defined benefit plans, netof taxShare of other comprehensive income ofentities accounted for using equity method

5,518

3,632

7

14

(16)

58

Total other comprehensive income

2,659

6,757

9,993

12,512

Owners of parent

6,336

10,341

Non-controlling interests

3,657

2,171

Comprehensive income
Comprehensive income attributable to:(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 these sheets.
Yodogawa Steel Works has explained this problem to companies that sell these sheets and is covering repair andother 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 future problems involving thesesheets 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 numberof problems that occur.

Segment and Other Information
Segment information
I. First six months of FY3/23 (Apr. 1, 2022 to Sep. 30, 2022)
1. Information related to net sales and profit/loss for each reportable segment
Reportable segments
Steel SheetReal
Roll
Grating
relatedEstateBusiness BusinessBusiness
Business

Total

Others(Note 1)

Total

(Millions of yen)Amounts
shown on the
Adjustment consolidated
statement of(Note 2)income(Note 3)

Net sales
External sales
114,0421,323
1,680
617 117,664
861 118,525–
118,525
Inter-segment
–
–
–
213
213
1,446
1,660
(1,660)–sales and transfers
Total
114,0421,323
1,680
831 117,878
2,308 120,186(1,660)118,525
Segment profit
8,525
(210)
27
406
8,748
198
8,946
(711)
8,235
(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 (709) million yen and an elimination forinter-segment transactions of (1) million yen.
3. Segment profit (loss) is adjusted with the operating profit on the quarterly consolidated statement of income.

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 amount of the impairment losses was 598 million yen in the first six months of FY3/23.
II. First six months of FY3/24 (Apr. 1, 2023 to Sep. 30, 2023)
1. Information related to net sales and profit/loss for each reportable segment
Reportable segments
Steel SheetReal
Roll
Grating
relatedEstateBusiness BusinessBusiness
Business

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

96,170

1,714

1,719

625

100,230

–

–

–

208

208

96,170

1,714

1,719

833

100,438

1,055 101,286–

101,286

1,318(1,318)–2,166 102,604(1,318)101,286

1,110

Segment profit
5,382
78
89
392
5,943
186
6,130
(658)
5,472
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 (645) million yen and an elimination for intersegment transactions of (12) million yen.
3. Segment profit is adjusted with the operating profit on the quarterly consolidated statement of income.

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.