May 9, 2019

Summary of the Consolidated Financial Results
for the Fiscal Year Ended March 31, 2019 (FY3/19)[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 Annual General Meeting of Shareholders:June 21, 2019
Scheduled date of payment of dividend:
June 24, 2019
Scheduled date of filing of Annual Securities Report:
June 21, 2019
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 FY3/19 (April 1, 2018 to March 31, 2019)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales

Operating profit

Millions of yen

Fiscal year ended Mar. 31, 2019
Fiscal year ended Mar. 31, 2018

% Millions of yen

167,419
173,805

Note: Comprehensive income (millions of yen):

(3.7)
12.7

% Millions of yen(45.8)(17.6)

9,829
12,284

Fiscal year ended Mar. 31, 2019
Fiscal year ended Mar. 31, 2018

Net income per
share
Fiscal year ended Mar. 31, 2019
Fiscal year ended Mar. 31, 2018

5,879
10,856

Diluted net
income per share

Profit attributable toowners of parent

Ordinary profit% Millions of yen(20.0)(10.7)

6,254
7,360

%

(15.0)
9.3

593 (down 95.5%)
13,314 (up 11.7%)

Return on
equityOrdinary profit
on total assets

Operating profit to
net sales

Yen

Yen

%

%

%

211.08247.98210.20246.93

4.1
5.0

4.6
5.8

3.5
6.2

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

Fiscal year ended Mar. 31, 2019
Fiscal year ended Mar. 31, 2018

394
332

(2) Consolidated financial position
Total assets
As of Mar. 31, 2019
As of Mar. 31, 2018

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

209,465
215,638

167,671
170,574

71.7
70.3

5,096.96
5,112.17

Reference: Shareholders’ equity (millions of yen):
As of Mar. 31, 2019:
150,236
As of Mar. 31, 2018: 151,586
Starting with the beginning of the current fiscal year, Yodogawa Steel Works has applied “Partial Amendments to Accounting Standard forTax Effect Accounting” (Accounting Standards Board of Japan (ASBJ) Statement No. 28, February 16, 2018). Prior -year figures have beenadjusted retroactively to conform with this accounting standard.

(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

8,273
1,933

1,232
(9,026)(3,979)(5,288)32,31627,277

Fiscal year ended Mar. 31, 2019
Fiscal year ended Mar. 31, 2018

2. Dividends
Dividend per share

Fiscal year ended Mar. 31, 2018
Fiscal year ended Mar. 31, 2019
Fiscal year ending Mar. 31, 2020
(Forecast)

3Q-end Year-end

Total
dividends

1Q-end2Q-end

Yen

Yen

Yen

Yen

Total

-

35.00
30.00

-

40.00
40.00

75.00
70.00

-

25.00

-

-

-

Payout ratio(consolidated)

Yen Millions of yen

2,245
2,088

Dividend on
equity(consolidated)

%

%

30.2
33.2

1.5
1.4

-

As stated in in a press release announced today concerning the difference between the forecast and actual performance and div idends fromsurplus, a resolution to revise year-end dividend for the fiscal year ended March 31, 2019 was approved by the Board of Directors.
There is currently no forecast for a year-end dividend for the fiscal year ending March 31, 2020.

3. Consolidated Forecasts for FY3/20 (April 1, 2019 to March 31, 2020)
Net salesFirst half
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

81,000
-

(3.2)
-

2,500
-

(18.1)-

3,200-(29.8)-

2,100-(26.0)-

71.25-

No full fiscal year forecast is shown because of the difficulty of determining a reliable forecast at this time.
For further details, please refer to “1. Overview of Results of Operations, (2) Outlook” on page 4.

* 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: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: None
4) Restatements: None

(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, 2019:35,837,230 shares

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

As of Mar. 31, 2018:

6,185,228 sharesFiscal year ended Mar. 31, 2018:

29,680,824 shares

2) Number of treasury shares at the end of the period
As of Mar. 31, 2019:

6,361,610 shares

3) Average number of shares outstanding during the period
Fiscal year ended Mar. 31, 2019:

29,631,713 shares

Reference: Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for FY3/19 (April 1, 2018 to March 31, 2019)(1) Non-consolidated results of operations
Net sales
Millions of yen

Fiscal year ended Mar. 31, 2019
Fiscal year ended Mar. 31, 2018

% Millions of yen

110,332
106,357

3.7
9.6

6,331
7,801

Net income per share
Fiscal year ended Mar. 31, 2019
Fiscal year ended Mar. 31, 2018

(Percentages represent year-on-year changes)
Ordinary profit
ProfitOperating profit% Millions of yen(18.8)(2.3)% Millions of yen

10,55810,352

2.0
17.7

5,891
7,541

%

(21.9)
27.0

Diluted net income per share

Yen

Yen

196.94251.69196.12250.64(2) Non-consolidated financial position
Total assets

Net assets

Millions of yen

Equity ratio

Millions of yen

As of Mar. 31, 2019
173,580
139,856
As of Mar. 31, 2018
175,403
140,526
Reference: Shareholders’ equity (millions of yen): As of Mar. 31, 2019: 139,646

Net assets per share
%

Yen

80.5
80.0
As of Mar. 31, 2018: 140,302

4,692.35
4,686.83

Starting with the beginning of the current fiscal year, Yodogawa Steel Works has applied “Partial Amendments to Accounting Standard forTax Effect Accounting” (ASBJ Statement No. 28, February 16, 2018). Prior-year figures have been adjusted retroactively to conform withthis accounting standard.

2. Non-consolidated Forecasts for FY3/20 (April 1, 2019 to March 31, 2020)
Net salesFirst half
Full year(Percentages represent year-on-year changes)
Net income
Ordinary profit
Profitper share

Operating profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

56,000
-

5.5
-

2,500
-

(22.6)-

3,300-(39.6)-

2,300-(40.4)-

77.28-

No full fiscal year forecast is shown because of the difficulty of determining a reliable forecast at this time.

* 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 t he
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 4.

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

Contents of Attachments
1. Overview of Results of Operations

2(1) Results of Operations and Financial Position

2(2) Outlook

4(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

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 FY3/19

1. Overview of Results of Operations(1) Results of Operations and Financial Position
1) Summary of results of operations
During the fiscal year ended March 31, 2019, the gradual recovery of the Japanese economy continued, but therecovery was somewhat lackluster due to a decline in exports caused by slowing growth of overseas economies andto other reasons.
The U.S. economy continued to recover with the support of firm consumer spending and other areas of strength. In
China, the economic growth rate decreased because of trade friction and slower growth of domestic demand.
In the Japanese steel industry, the business environment was generally favorable because of solid demand for steel
for building construction, automobiles, home appliances and other uses. The outlook for the global steel market isunclear because of the resumption of growth of crude steel production despite slower economic growth in China andfor other reasons.
The Yodogawa Steel Group’s net sales in the fiscal year decreased 6,385 million yen to 167,419 million yen.
Operating profit decreased 4,977 million yen to 5,879 million yen, ordinary profit decreased 2,455 million yen to9,829 million yen, and profit attributable to owners of parent decreased 1,105 million yen to 6,254 million yen.
Earnings were impacted by a loss on disaster of 651 million yen under the extraordinary losses due to damage
caused by a typhoon No.21 in September 2018.
Improper activities involving the quality of roll products were discovered in September 2018. Yodogawa Steelextends its sincere apology to customers, shareholders and others for the trouble created by this problem. This
incident did not have a significant effect on results of operations in the fiscal year ended March 31, 2019.
Total assets at the end of the fiscal year decreased 6,173 million yen to 209,465 million yen. This was attributable
mainly to a decrease in investment securities along with a decline in stock prices. Liabilities decreased 3,270 million
yen to 41,793 million yen. This was attributable mainly to a decrease in deferred tax liabilities. Net assets decreased
2,902 million yen to 167,671 million yen. This was attributable mainly to decreases in valuation difference on
available-for-sale securities and foreign currency translation adjustment.
Results by business segment are as follows.
Steel Sheet-related BusinessNet sales totaled 155,123 million yen and operating profit was 6,052 million yen.
Roll BusinessNet sales totaled 3,500 million yen and operating loss was 77 million yen.
Grating BusinessNet sales totaled 3,554 million yen and operating profit was 84 million yen.
Real Estate BusinessNet sales totaled 1,183 million yen and operating profit was 830 million yen.
Other Businesses
Net sales totaled 4,057 million yen and operating profit was 245 million yen.
Cash and cash equivalents at the end of the fiscal year increased 5,039 million yen from the end of the previous
fiscal year to 32,316 million yen mainly due to an increase in operating cash flows.
Cash flows from operating activities
Net cash provided by operating activities increased 6,339 million yen to 8,273 million yen. Operating profit of 5,879
million yen and depreciation of 4,056 million yen were the primary sources of cash.

2

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

Cash flows from investing activities
Net cash provided by investing activities was 1,232 million yen (compared with 9,026 million yen used 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 3,979 million yen (compared with 5,288 million yen used in the previous
fiscal year) mainly due to cash dividends paid.
2) Analysis and review of results of operations
Consolidated sales decreased even though sales increased in Japan because of price revisions. The main reason wasa large decline in the sales of Taiwan subsidiary Sheng Yu Steel Co., Ltd. (SYSCO) caused by U.S. tradeprotectionism.
Operating profit was lower in Japan primarily because of a smaller contribution to earnings from inventory
valuations than in the previous fiscal year. Overseas, there was a sharp decline in operating profit because ofchallenging market conditions for SYSCO and all other overseas subsidiaries.
Ordinary profit decreased less than operating profit primarily because of gains on sales of investment securities.
Lower earnings at SYSCO, which has a high percentage of non-controlling interest ownership, was a major reason
for the decline in profit. As a result, the decrease in profit attributable to owners of parent is smaller than t hedecrease in ordinary profit.
The Yodogawa Steel Group’s basic strategy for capital policy is to maintain consistent operating cash flows in order
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 2019, 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 business goals,
the Yodogawa Steel Group Medium-Term Management Plan 2019, which was announced in March 2017, has thefollowing goal: consolidated ordinary profit of at least 10 billion yen every year regardless of the performance ofexisting businesses and changes in the business climate, including foreign exchange rate movements.
In the fiscal year that ended on March 31, 2019, the operating environment was challenging due to the higher cost of
raw materials, energy and other items. Trade protectionism in all regions of the world also made market conditionsdifficult. Although there were many activities using the speed and flexibility that has always been one of the
Yodogawa Steel Group’s key strengths, the Group was unable to achieve the consolidated ordinary profit goal of atleast 10 billion yen.
The financial position and recognition, analysis and review of results of operations by business segment are as
follows.
Steel Sheet-related Business
Sales of steel sheets to specific high-demand customers in Japan increased because of price revisions and the focus
of sales activities on pre-painted sheets, a product with significant added value. There was a small increase in retailsales of steel sheets for general distribution. Sales activities that placed emphasis on prices caused the sales volumeof plated steel sheets to decline, but sales benefited from progress with price revisions. At Taiwan subsidiary
SYSCO, sales fell mainly because of a big downturn in exports to North America. At Yodogawa -Shengyu (Hefei)
High-Tech Steel Co., Ltd. (YSS) in China, sales were down mostly because of lower orders caused by slower
economic growth in China. In Thailand, PCM Processing (Thailand) Ltd. (PPT) recorded lower sales because of3

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

intensified competition and foreign exchange rate movements.
In the building materials category, sales of building products increased chiefly because of the growth in the sales
volumes of YODO fire-proof panel Grand Wall (a fire-proof wall material) and YODO Fine Panel (insulated siding).
Sales of exterior products increased due to higher sales of storage sheds backed by firm consumer spending and tostrong sales of a new garage product. Construction sales decreased because the previous fiscal year’s sales included
the completion of large projects. However, this category performed well as orders were generally strong at large
distribution warehouses, factories and other facilities.
As a result, total sales in the steel sheet-related business were lower than one year earlier.
Roll Business
Sales decreased because of damage at some production facilities caused by Typhoon No.21 in September 2018 andthe suspension of shipments caused by problems created by improper activities involving the quality of roll
products.
Grating Business
Sales were about the same as in the previous fiscal year as firm demand in the private sector in conjunction withlogistics and capital expenditures offset weakness in the public-works sector.
Real Estate Business
Sales increased mainly because of higher leasing income resulting from an increase in the number of leased
properties.
Other Businesses
Higher sales in material sales operations raised sales in this segment.
(2) Outlook
There is an increasing risk of a decline in the growth rate of the global economy because of lackluster growth inChina and Europe, trade problems caused by U.S. protectionism, problems involving Brexit, and other reasons.
The economic outlook in Japan is becoming increasingly uncertain due to sluggish exports caused by the weaknessof the global economy and to the upcoming consumption tax hike.
In the steel industry, the increasing risk of slower global economic growth is creating uncertainty in overseas steelmarkets. In Japan, although steel demand in the construction sector is remaining firm, there is a growing risk of adownturn in demand because of sluggish exports caused by slow global economic growth and other sources ofconcern. We expect that the rising cost of hot-rolled steel sheets and zinc, the primary raw materials for our products,
and other factors will make our business climate very challenging.
To achieve the goals of the Yodogawa Steel Group Medium-Term Management Plan 2019, all group companies aretaking full advantage of the speed and flexibility that is a key strength of the Group for measures aimed at becoming
more profitable by establishing positions in new markets and increasing sales of value-added products.
Based on this outlook, a forecast for the first half of the fiscal year ending on March 31, 2020 has been established.
Determining a reliable forecast for the fiscal year is not possible at this time because of the increasing uncertainty
about the business climate in Japan and overseas for the Yodogawa Steel Group. An announcement will be madepromptly once it becomes possible to determine a reliable forecast.

4

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/19(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 distributed bypaying 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 actio ns 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 between about 30% and 50%. In
addition, there is a goal of paying an annual dividend of at least 50 yen per share for each o f the three fiscal years
ended on March 31, 2017, 2018 and 2019.
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 resolutionof 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, 2019 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.
Based on the outlook for operating results, the interim dividend for the fiscal year ending March 31, 2020 is
expected to be 25 yen. There is currently no forecast for year-end dividends for the fiscal year ending March 31,
2020. An announcement will be made promptly 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 f inancial dataof other companies.
We will take suitable actions with regard to the application of the International Financial Reporting Standards(IFRS) by taking into account associated factors in Japan and other countries.

5

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

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

FY3/18(as of Mar. 31, 2018)
AssetsCurrent assets
Cash and deposits*1

30,716*1

36,843

Notes and accounts receivable-trade*5

43,938*544,018

Securities

2,888

3,494

Merchandise and finished goods

16,081

15,519Work in process

4,684

4,397

Raw materials and supplies

13,122

12,733

Other

5,376

3,881

Allowance for doubtful accounts

(149)

(132)

116,658

120,755

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

60,92460,458(44,632)(45,269)

Buildings and structures, net

16,291

15,189Machinery, equipment and vehicles

133,033

134,337(120,453)(121,482)

Accumulated depreciation
Machinery, equipment and vehicles, net

12,579Land*418,848

Leased assets

12,855*4

18,687

1,504

47

Accumulated depreciation

(717)

(35)

Leased assets, net

787

12

Construction in progress

1,135

554

Other

12,08412,004(11,217)(11,175)

867

828

50,50948,126

7

-

Other

1,475

1,472

Total intangible assets

1,482

1,472

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

Investments and other assets
Investment securities*1,*2

46,338Long-term loans receivable*1,*2

38,2920

Deferred tax assets

-

221

Other

*1

Total investments and other assets

427
46,987

Total non-current assets
Total assets

6

369
*1

448
39,10998,98088,709215,638

209,465

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/19(Millions of yen)
FY3/19(as of Mar. 31, 2019)

FY3/18(as of Mar. 31, 2018)
Liabilities
Current liabilities
Notes and accounts payable-trade*5

18,154

Short-term loans payable*5

17,858

-

327

772

9

Income taxes payable

2,165

1,736

Provision for bonuses

1,056

971

Lease obligations

Other

*1,*5

6,098

Total current liabilities

*1,*5

6,265

28,247

27,168Non-current liabilities
Lease obligations
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability

*4

19

10

4,060

2,502

856

*4

856

66

66

7,569

7,154

Other

4,244

4,034

Total non-current liabilities

16,817

14,62445,064

41,79323,22023,220Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus

20,393

20,385Retained earnings

100,775

104,961

Treasury shares(12,679)(13,061)

Total shareholders’ equity

131,710

135,505

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

16,420

Revaluation reserve for land

*4

1,646

12,213*4

1,639

Foreign currency translation adjustment

2,798

1,378

Remeasurements of defined benefit plans

(990)

(500)

Total accumulated other comprehensive income

19,875

14,730Share acquisition rights

223

210

Non-controlling interests

18,764

17,225

Total net assets

170,574

167,671

215,638

209,465

Total liabilities and net assets

7

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/19(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statement of Income)
FY3/18(Apr. 1, 2017 to Mar. 31, 2018)(Millions of yen)
FY3/19(Apr. 1, 2018 to Mar. 31, 2019)

173,805

167,419

Net sales
Cost of sales*1

Gross profit

144,973*1

144,180

28,831

Selling, general and administrative expenses*2,*3

Operating profit

17,97423,238*2,*3

17,35810,856

5,879Interest income

415

579

Dividend income

771

841

Insurance income

8889Gain on sales of investment securities

226

2,017

-

168

332

394

Non-operating income

Foreign exchange gains
Share of profit of entities accounted for using
equity method
Other

278

200

2,113

4,292

Interest expenses

107

80

Foreign exchange losses

152-

Commitment fee
Cost for employees transferred temporarily tooverseas subsidiaries
Arbitration settlement cost

27

24

246

194

120

-

Total non-operating income
Non-operating expenses

Other

31

42

Total non-operating expenses

685

342

12,284

9,829

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

*4

1

-

Gain on sales of investment securities

23-

Insurance income-

88

Total extraordinary income

2488Extraordinary losses
Loss on sales and retirement of non-current
assetsImpairment loss

*5

99

*5

53

*6

3

*6

6

Loss on disaster-

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

86

44

33

-

-

0

Total extraordinary losses

*7

651

222

755

Profit before income taxes

12,087

9,162

Income taxes-current

3,537

3,174

Income taxes-deferred

(145)

(509)

Total income taxes

3,391

2,664

Profit

8,695

6,497

Profit attributable to non-controlling interests

1,335

243

Profit attributable to owners of parent

7,360

6,254

8

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/19(Consolidated Statement of Comprehensive Income)
FY3/18(Apr. 1, 2017 to Mar. 31, 2018)(Millions of yen)
FY3/19(Apr. 1, 2018 to Mar. 31, 2019)

8,695

6,497

1,873

(4,210)2,065(2,303)

636

669

43

(58)

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

4,618

*

(5,903)

13,314593

11,049

1,116

2,264

(522)

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/19(3) Consolidated Statement of Changes in Equity
FY3/18 (Apr. 1, 2017 to Mar. 31, 2018)(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of current
periodChanges of items during period

Capital surplus Retained earnings Treasury shares

23,22020,38895,664

Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Purchase of shares of
consolidated subsidiaries
Reversal of revaluation reserve
for landNet changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at end of current period

Total shareholders’equity(12,199)

127,074(2,230)(2,230)

7,360

7,360
(495)

(495)

15

9

(5)
11

11
(19)

(19)

-

5

5,110

(480)

4,635

23,22020,393

100,775(12,679)

131,710

Accumulated other comprehensive income
Total
Share
NonValuation
Foreign
RemeasureRevaluation
accumulated acquisition controlling Total net
difference on
currency
ments ofassetsreserve forotherrightsinterests
available-fortranslation
definedlandcomprehensive
sale securities
adjustment benefit plansincomeBalance at beginningof current period
Changes of items
during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesPurchase of sharesof consolidated
subsidiaries
Reversal ofrevaluation reserve
for landNet changes of items
other thanshareholders’ equity
Total changes of items
during period
Balance at end ofcurrent period

14,477

1,626

1,580

(1,516)

16,167205

17,927

161,374(2,230)
7,360
(495)
9
11

(19)

1,943

20

1,218

526

3,708

18

836

4,564

1,943

20

1,218

526

3,708

18

836

9,199

16,420

1,646

2,798

(990)

19,875223

18,764

170,57410

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

FY3/19 (Apr. 1, 2018 to Mar. 31, 2019)(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of current
periodChanges of items during period

Capital surplus Retained earnings Treasury shares

23,22020,393

100,775

Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Purchase of shares of
consolidated subsidiaries
Reversal of revaluation reserve
for landNet changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at end of current period

Total shareholders’equity(12,679)

131,710(2,076)(2,076)

6,254

6,254
(443)

(443)

61

43

(17)
8

8
7

7

-

(8)

4,185

(382)

3,795

23,22020,385

104,961(13,061)

135,505

Accumulated other comprehensive income
Total
Share
NonValuation
Foreign
RemeasureRevaluation
accumulated acquisition controlling Total net
difference on
currency
ments ofassetsreserve forotherrightsinterests
available-fortranslation
definedlandcomprehensive
sale securities
adjustment benefit plansincomeBalance at beginningof current period
Changes of items
during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesPurchase of sharesof consolidated
subsidiaries
Reversal ofrevaluation reserve
for landNet changes of items
other thanshareholders’ equity
Total changes of items
during period
Balance at end ofcurrent period

16,420

1,646

2,798

(990)

19,875223

18,764

170,574(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

167,67111

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

FY3/18(Apr. 1, 2017 to Mar. 31, 2018)
Cash flows from operating activities
Profit before income taxes

12,087

9,162

Depreciation

4,318

4,056

3

3

(332)

(394)

78

399

(28)

0

4

(85)

35

(16)

(1,187)(1,421)

107

80

Amortization of goodwill
Share of loss (profit) of entities accounted for using
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 income

(88)

(177)

Loss (gain) on sales of investment securities(226)(2,017)

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

86

44

97

53

-

651

Impairment loss
Decrease (increase) in notes and accounts
receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts
payable-trade
Increase (decrease) in accrued consumption taxes

3

6(2,681)(238)(7,937)

529

245

(199)

177

300

Other, net

49

(370)

Subtotal

4,811

10,36788

163

Interest and dividend income received

1,236

1,508

Interest expenses paid

(109)

(80)

-

(102)

Income taxes paid

(4,094)(3,582)

Net cash provided by (used in) operating activities

1,933

8,273

(3,808)(4,385)

1,984

3,727

Proceeds from insurance income

Payments for loss on disaster

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

Purchase of property, plant and equipment
Proceeds from sales of property, plant andequipment
Purchase of intangible assets(4,563)(2,281)

1

0

(162)

(182)

Purchase of investment securities
Proceeds from sales and redemption of investment
securities
Payments of loans receivable(3,605)(3,027)

1,445

5,500

(484)

(19)

165

300

(9,026)

1,232

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

12

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

FY3/18(Apr. 1, 2017 to Mar. 31, 2018)
Cash flows from financing activities
Net increase (decrease) in short-term loans payable

(664)

327

Repayments of lease obligations

(180)

(763)

Proceeds from sales of treasury shares

0

0

(492)

(440)

Cash dividends paid

(2,251)(2,095)

Dividends paid to non-controlling interests
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation(1,407)(1,005)

(291)

(2)

Net cash provided by (used in) financing activities(5,288)(3,979)

611

(485)

(11,769)

5,039

Purchase of treasury shares

Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period

39,047

Cash and cash equivalents at end of period*

1327,27727,277*32,316

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/19(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., Shanghai Yodoko Trading Co., Ltd. (SYT)
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 equity 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 u sed.
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 theconsolidated 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 and March
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.
Without market quotations
Stated at cost determined by the moving-average method

14

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

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 toreflect 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 of buildings
acquired on or after April 1, 1998 (excluding facilities attached to buildings) and facilities attached to buildings and structuresacquired 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 estimated amount of
uncollectible receivables is provided for general receivables based on the historical write-off ratio, and bad receivables basedon 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 fi scal
year-end in accordance with the internal rules on directors’ retirement benefits at domestic consolidated subs idiaries.
(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 in whichsuch 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
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.

15

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/19(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 and liabiliti es ofoverseas subsidiaries are translated into Japanese yen at the spot exchange rate of their balance sheet dates, and income andexpenses are translated into Japanese yen at the average exchange rates for the period. The resulting exchange gains or losse s
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 exchange contracts that meetcertain hedge accounting criteria.
2) Hedging instruments and hedged items
Hedging instruments:
Forward exchange contracts

Hedged items:
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 forhedging 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 pres ent insignificant risk of change in value.
(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.

16

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

Notes to Consolidated Balance Sheet*1. Assets pledged as collateral and liabilities with collateral
Assets pledged as collateral are as follows:
FY3/18(as of Mar. 31, 2018)
Cash and deposits

60(Millions of yen)
FY3/19(as of Mar. 31, 2019)60

Investment securities

6

6

Other (Investment and other assets)

40

37

107

104

51

(Millions of yen)
FY3/19(as of Mar. 31, 2019)50

FY3/18(as of Mar. 31, 2018)
5,536(Millions of yen)
FY3/19(as of Mar. 31, 2019)
5,796

Total
Liabilities with collateral are as follows:
FY3/18(as of Mar. 31, 2018)
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)
FY3/18
FY3/19(as of Mar. 31, 2018)(as of Mar. 31, 2019)
YBMH
127
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)
FY3/19(as of Mar. 31, 2019)

FY3/18(as of Mar. 31, 2018)
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:

(330)

(326)

(12)

(12)

March 31, 2002
FY3/18(as of Mar. 31, 2018)

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

(572)

(455)

(285)

(278)

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/19*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 current fiscal year -end fell on a holiday
for financial institutions, they were treated as though they were settled on the maturity date. The amount s of notes matured at
the end of the fiscal year are as follows.
(Millions of yen)
FY3/18
FY3/19(as of Mar. 31, 2018)(as of Mar. 31, 2019)
Notes receivable-trade
858 Notes receivable-trade
1,195
Notes payable-trade

400

Notes payable-trade

Current liabilities (other)66

Current liabilities (other)(Notes payable-facilities)

414
7(Notes payable-facilities)

6. Yodogawa Steel has committed line agreements with a number of financial institutions in order to procure funds for working
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)
FY3/18
FY3/19(as of Mar. 31, 2018)(as of Mar. 31, 2019)
Total commitment line of credit
17,01016,610Credit used
Unused balance--

17,01016,610Notes to Consolidated Statement of Income*1. The ending inventory is the amount written down to reflect decline in profitability. The following loss on valuation of
inventories is included in cost of sales.
(Millions of yen)
FY3/18
FY3/19(Apr. 1, 2017 to Mar. 31, 2018)(Apr. 1, 2018 to Mar. 31, 2019)
77

325*2. Major items and amounts of selling, general and administrative expenses are as follows:(Millions of yen)
FY3/18
FY3/19(Apr. 1, 2017 to Mar. 31, 2018) (Apr. 1, 2018 to Mar. 31, 2019)
372
347

Provision for bonuses
Retirement benefit expenses

394

238

Freightage expenses

5,427

5,013

Salaries and allowances

4,291

4,398

*3. Total amount of research and development expenses included in general and administrative expenses(Millions of yen)
FY3/18(Apr. 1, 2017 to Mar. 31, 2018)

FY3/19(Apr. 1, 2018 to Mar. 31, 2019)
549

462

*4. Breakdown of gain on sales of non-current assets is as follows:

Machinery, equipment and vehicles(Millions of yen)
FY3/18
FY3/19(Apr. 1, 2017 to Mar. 31, 2018) (Apr. 1, 2018 to Mar. 31, 2019)
1-

Other (property, plant and equipment)
Total

18

0

-

1

-

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/19*5. Breakdown of loss on sales and retirement of non-current assets is as follows:(Millions of yen)
FY3/18
FY3/19(Apr. 1, 2017 to Mar. 31, 2018) (Apr. 1, 2018 to Mar. 31, 2019)64
3

Buildings and structures
Machinery, equipment and vehicles

24

45

Other (property, plant and equipment)

9

4

Other (intangible assets)
Total

0

0

99

53

*6. The Yodogawa Steel Group recognized an impairment loss on the following asset groups.
FY3/18 (Apr. 1, 2017 to Mar. 31, 2018)
Use(Millions of yen)AmountType

Miyazaki City, Miyazaki

Idle assets

Land

3

Suzaka City, Nagano

Idle assets

Land

0

Yodogawa Steel and its consolidated subsidiaries group assets based on asset classifications used for managerial accounting f ormonitoring the performance of businesses on a regular basis. In the fiscal year ended March 31, 2018, for idle assets with noprospects for use in the future where the market value has decreased, the book value was written down to the recoverable amou nt
and this impairment loss of 3 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.
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 f ormonitoring 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 reco verable 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.
*7. Loss on disaster of 651 million yen in the fiscal year ended March 31, 2019 is caused by Typhoon No. 21.

19

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

Notes to Consolidated Statement of Comprehensive Income* Reclassification adjustments and tax effect with respect to other comprehensive income(Millions of yen)
FY3/18
FY3/19(Apr. 1, 2017 to Mar. 31, 2018) (Apr. 1, 2018 to Mar. 31, 2019)
Valuation difference on available-for-sale securities:
Amount incurred during the year
Reclassification adjustments

2,851(3,626)(226)(1,971)

Before tax effect adjustments

2,624(5,598)Tax effect

(750)

1,387

Valuation difference on available-for-sale securities

1,873(4,210)2,065(2,303)

-

-

2,065

(2,303)Foreign currency translation adjustment:
Amount incurred during the year
Reclassification adjustments
Before tax effect adjustments
Tax effect

-

-

2,065

(2,303)

Amount incurred during the year

319

468

Reclassification adjustments

543

389

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax:

Before tax effect adjustments

862

857

Tax effect

(226)

(188)

Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted forusing equity method:Amount incurred during the year

636

669

43

(58)

Reclassification adjustments
Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income

-

-

43

(58)

4,618

(5,903)20

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

Notes to Consolidated Statement of Changes in Equity
FY3/18 (Apr. 1, 2017 to Mar. 31, 2018)
1. Type and number of outstanding shares and treasury shares
Number of shares
as of Apr. 1, 2017

Increase(Thousands of shares)
Number of shares
as of Mar. 31, 2018

Decrease

Outstanding shares
35,837--35,837

Total

35,837--35,837

Common stock (Notes 1 and 2)

6,028

162

6

6,185

Common stock
Treasury shares

Total
6,028
162
6
6,185
Notes: 1. An increase of 162 thousand shares in the number of treasury shares is due to an increase of 160 thousand shares fromthe acquisition of treasury shares based on a resolution by the Board of Directors, an increase of 1 thousand sharesfrom the purchase of shares less than one unit, and the return of 0 thousand shares of treasury shares (Yodogawa SteelWorks shares) that an equity-method affiliate had acquired.
2. The decrease of 6 thousand shares in the number of treasury shares is due to a decrease of 6 thousand shares to provide
stock to individuals who exercised stock options and a decrease of 0 thousand shares due to the transfer of shares lessthan 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, 201731, 2018
FilingShare acquisition
company
rights as stock options(Parent)
Total-

Balance as ofMar. 31, 2018
(Millions of
yen)
223
223

3. Dividends(1) Dividend payment
Resolution
Board of Directors’ meetingon May 10, 2017
Board of Directors’ meetingon Nov. 2, 2017

Type of share

Total dividends(Millions of yen)

Dividend pershare (Yen)Record date

Effective dateCommon stock

1,203

40

Mar. 31, 2017

Jun. 23, 2017

Common stock

1,047

35

Sep. 30, 2017

Dec. 1, 2017

(2) Dividends with a record date in FY3/18 but an effective date in FY3/19
Type of
Total dividends
Source of
Resolution
share(Millions of yen)funds
Board of Directors’ meeting
CommonRetained
1,197
on May 10, 2018stock
earnings

21

Dividend pershare (Yen)Record date

Effective date

40

Mar. 31, 2018

Jun. 25, 2018

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

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
35,837--35,837

Total

35,837--35,837

Common stock (Notes 1 and 2)

6,185

202

26

6,361

Common stock
Treasury shares

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 shares fromthe acquisition of treasury shares based on a resolution by the Board of Directors, an increase of 1 thousand sharesfrom the purchase of shares less than one unit, and the return of 1 thousand shares of treasury shares (Yodogawa SteelWorks 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
Board of Directors’ meetingon May 10, 2018
Board of Directors’ meetingon Nov. 2, 2018

Type of share

Total dividends(Millions of yen)

Dividend pershare (Yen)Record date

Effective dateCommon stock

1,197

40

Mar. 31, 2018

Jun. 25, 2018

Common stock

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

Dividend pershare (Yen)Record date

Effective date

40

Mar. 31, 2019

Jun. 24, 2019

Notes to Consolidated Statement of Cash Flows* Reconciliation of cash and cash equivalents at the end of the fiscal year and amounts in the consolidated balance sheet(Millions of yen)
FY3/18
FY3/19(Apr. 1, 2017 to Mar. 31, 2018) (Apr. 1, 2018 to Mar. 31, 2019)
Cash and deposits
30,71636,843
Trust beneficiary rights included in current assets and

1,000

1,000

Time deposits with maturities over three months(4,438)(5,527)

Cash and cash equivalents

27,27732,316other items

22

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

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 purposes ofdetermining the allocation of resources and evaluating performance.
The Yodogawa Steel Group has business divisions based on the products and services of Yodogawa Steel and its
consolidated subsidiaries. Each division determines strategies and conducts business operati ons for its products andservices. Accordingly, the Yodogawa Steel Group is composed of segments classified by products or services basedon the business divisions and there are four reportable segments: Steel Sheet-related business, Roll business, 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 Roll business
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 and selling 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
FY3/18 (Apr. 1, 2017 to Mar. 31, 2018)
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

161,674

3,759

3,547

1,067

170,048

3,756

173,805-

173,805

-

-

-

442

442

2,664

3,107

(3,107)-

161,674

3,759

3,547

1,509

170,490

6,421

176,912Segment profit

10,818

57

114

736

11,727361

12,089173,805
Note 3
10,856

Segment assets

133,372

3,354

3,472

9,716

149,915

9,802

159,718(3,107)Note 2(1,232)
Note 455,920215,638

Other items
3,631
134
64
124
3,954
319
4,274
44
4,318
Depreciation
Investment in
4,380
407
3
4,791
4,791
4,791
equity-method
affiliates
Increases inproperty, plant
Note 5
2,588
42
32
225
2,888
238
3,126
3,186
and equipment
59
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 includes unallocated expenses of (1,236) million yen and an elimination forinter-segment transactions of 4 million yen.
3. Segment profit is adjusted to be consistent with the operating profit on the consolidated statement of income.
4. The adjustment to segment assets includes corporate assets of 56,196 million yen and an elimination for23

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

inter-segment transactions of (275) million yen. Starting with the beginning of FY3/19, Yodogawa Steel Works has
applied “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No. 28, February
16, 2018). Prior-year figures have been adjusted retroactively to conform with this accounting standard. Accordingly,
corporate assets decreased 503 million yen.
5. The adjustment of 59 million yen to increases in property, plant and equipment and intangible assets is capital
expenditures mainly for corporate software.
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

4,057

167,419-

167,419

-

-

-

442

442

2,508

2,950

(2,950)-155,123

3,500

3,554

1,625

163,803

6,566

170,370

6,052

(77)

84

830

6,888

245

7,134

167,419
Note 3
5,879

Segment assets

147,735

5,561

3,237

9,569

166,103

9,614

175,717(2,950)Note 2(1,254)Note 433,747

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 forinter-segment transactions of (1) million yen.
3. Segment profit is adjusted to be consistent with the operating profit on the consolidated statement of income.
4. The adjustment to segment assets includes corporate assets of 34,085 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.

24

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

Per-share Information(Yen)
FY3/18(Apr. 1, 2017 to Mar. 31, 2018)

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

Net assets per share

5,112.17

5,096.96

Net income per share

247.98211.08

Diluted net income per share
246.93
Note: Basis for calculation of net income per share and diluted net income per share is as follows.

210.20FY3/18(Apr. 1, 2017 to Mar. 31, 2018)

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

7,360

6,254

-

-

7,360

6,254

29,68029,631

-

-

125

123

[125]

[123]

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 wasno dilutive effect-

Subsequent Events
Not applicable.

25

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

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

FY3/18(as of Mar. 31, 2018)
AssetsCurrent assets
Cash and deposits

13,011

20,306

Notes receivable-trade

1,783

2,360

Accounts receivable-trade37,96637,010

Securities

2,589

2,075

Merchandise and finished goods

12,087

12,591Work in process

3,148

3,506

Raw materials and supplies

6,518

6,492

62

66

1,237

957

(4)

(3)

78,40085,364

Buildings

7,827

7,495

Structures

792

743

6,011

5,519

8

49

Prepaid expenses
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

Machinery and equipment
VehiclesTools, furniture and fixtures
Land
Construction in progress

429

396

13,58813,586269

183

28,927

27,973

Software

142

105

Other

422

512

Total intangible assets

564

618

Investment securities

37,962

31,127

Shares of subsidiaries and associates

29,29327,903-329

Total property, plant and equipment
Intangible assets

Investments and other assets

Long-term loans receivable
Other

255

263

Allowance for doubtful accounts-(0)

Total investments and other assets

67,511

59,624

Total non-current assets
Total assets

26

97,003

88,216

175,403

173,580

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/19(Millions of yen)
FY3/19(as of Mar. 31, 2019)

FY3/18(as of Mar. 31, 2018)
Liabilities
Current liabilities
Notes payable-trade

2,989

2,990

Accounts payable-trade

12,001

11,518

Short-term loans payable

1,940

1,940

Accounts payable-other

999

819

Accrued expenses

2,171

2,278

Income taxes payable

1,508

1,576

Advances received

98

131

Deposits received

174

173

Provision for bonuses

931

841

Other

704

1,505

23,51823,775

Provision for retirement benefits

5,106

5,504

Long-term guarantee deposited

1,270

1,280

Deferred tax liabilities

4,320

2,632

241

244

Total current liabilities
Non-current liabilities

Asset retirement obligations
Other
Total non-current liabilities
Total liabilities

420

287

11,3599,948

34,87733,724

23,22023,220Net assets
Shareholders’ equity
Capital stock
Capital surplus
Legal capital surplus

5,805

5,805

Other capital surplus

15,582

15,565

Total capital surpluses

21,387

21,370Reserve for advanced depreciation of non-current assets

931

897

Reserve for special depreciation

499

363

General reserve

71,382

71,382Retained earnings brought forward

20,63324,60093,447

97,242

Treasury shares(13,846)(14,225)

Total shareholders’ equity

124,209

127,608

Valuation difference on available-for-sale securities

16,093

12,037

Total valuation and translation adjustments

16,093

12,037Retained earnings
Other retained earnings

Total retained earnings

Valuation and translation adjustments

Share acquisition rights
Total net assets
Total liabilities and net assets

27

223

210

140,526

139,856

175,403

173,580

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/19(2) Non-consolidated Statement of Income
FY3/18(Apr. 1, 2017 to Mar. 31, 2018)(Millions of yen)
FY3/19(Apr. 1, 2018 to Mar. 31, 2019)

Net sales

106,357

110,332

Cost of sales

84,78190,095Gross profit

21,575

20,236

Selling, general and administrative expenses

13,774

13,904

Operating profit

7,801

6,331

Non-operating income
Interest income

238

311

Dividend income

2,378

2,017

200

2,046

Gain on sales of investment securities

209

178

3,026

4,553

Interest expenses

60

64

Arbitration settlement cost

120

-

Other

294

263

Total non-operating expenses

475

327

10,352

10,55823-

Insurance income-

43

Total extraordinary income

23

43

70

31

Loss on valuation of investment securities-

44

Impairment loss

3

2

Loss on disaster-

617

Loss on valuation of shares of subsidiaries andassociates

86

1,389

Loss on liquidation of subsidiaries and associates

33

-

Other
Total non-operating income
Non-operating expenses

Ordinary profit
Extraordinary income
Gain on sales of shares of subsidiaries and associates

Extraordinary losses
Loss on sales and retirement of non-current assets

193

2,086

Profit before income taxes

10,182

8,515

Income taxes-current

2,850

2,965

Total extraordinary losses

Income taxes-deferred

(209)

(341)

Total income taxes

2,640

2,623

Profit

7,541

5,891

28

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/19(3) Non-consolidated Statement of Changes in Equity
FY3/18 (Apr. 1, 2017 to Mar. 31, 2018)(Millions of yen)
Shareholders’ equity
Capital surplus

Retained earnings
Other retained earnings

Balance at
beginning of current
periodChanges of items
during period
Reversal ofreserve foradvanceddepreciation of
non-current assets
Reversal ofreserve for special
depreciation
Dividends ofsurplusProfitPurchase oftreasury shares
Disposal oftreasury shares
Net changes of
items other thanshareholders’equityTotal changes of
items during period
Balance at end ofcurrent period

Capital
stock

Legal
capitalsurplus

Othercapitalsurplus23,2205,805

15,588Total
capitalsurplus21,393

Reserve foradvanced
Reserve forGeneraldepreciation of
specialreserve
non-current depreciation
assets967

635

71,382Retainedearnings
brought
forwardTotal
retainedearnings

15,171

88,156

35

-

136

-

(2,251)(2,251)

7,541

7,541

(35)

(136)

(5)

(5)

-

-

(5)

(5)

(35)

(136)

-

5,462

5,290

23,2205,805

15,582

21,387931

499

71,382

20,63393,447

Shareholders’ equity
Total
Treasury shares shareholders’equityBalance at beginning ofcurrent period
Changes of items during
periodReversal of reserve foradvanced depreciation of
non-current assets
Reversal of reserve for
special depreciation
Dividends of surplus
ProfitPurchase of treasury
shares
Disposal of treasury
sharesNet changes of items otherthan shareholders’ equity
Total changes of items
during period
Balance at end of current
period(13,369)

Valuation and translation adjustments
Valuation difference Total valuation
on available-for-sale and translation
securities
adjustments

119,402

14,167

14,167

Shareacquisitionrights205

Total net assets

133,774

-

-

-

-

(2,251)(2,251)

7,541

7,541

(492)

(492)

(492)

15

9

9
1,926

1,926

18

1,944

(477)

4,807

1,926

1,926

18

6,751

(13,846)

124,209

16,09316,093

223

140,526

29

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

FY3/19 (Apr. 1, 2018 to Mar. 31, 2019)(Millions of yen)
Shareholders’ equity
Capital surplus

Retained earnings
Other retained earnings

Balance at
beginning of current
periodChanges of items
during period
Reversal ofreserve foradvanceddepreciation of
non-current assets
Reversal ofreserve for special
depreciation
Dividends ofsurplusProfitPurchase oftreasury shares
Disposal oftreasury shares
Net changes of
items other thanshareholders’equityTotal changes of
items during period
Balance at end ofcurrent period

Capital
stock

Legal
capitalsurplus

Othercapitalsurplus23,2205,805

15,582

Total
capitalsurplus21,387

Reserve foradvanced
Reserve forGeneraldepreciation of
specialreserve
non-current depreciation
assets931

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
Total
Treasury shares shareholders’equityBalance at beginning ofcurrent period
Changes of items during
periodReversal of reserve foradvanced depreciation of
non-current assets
Reversal of reserve for
special depreciation
Dividends of surplus
ProfitPurchase of treasury
shares
Disposal of treasury
sharesNet changes of items otherthan shareholders’ equity
Total changes of items
during period
Balance at end of current
period(13,846)

Valuation and translation adjustments
Valuation difference Total valuation
on available-for-sale and translation
securities
adjustments

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

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