February 6, 2023

Summary of the Consolidated Financial Results for the Third Quarterof the Fiscal Year Ending March 31, 2023 (FY3/23)(Nine Months Ended December 31, 2022)[Japanese GAAP]

Company name:

Yodogawa Steel Works, Ltd.
Listing: Tokyo Stock Exchange
5451
URL: https://www.yodoko.co.jp/
Satoshi Nitta, President and Representative Director
Takayuki Deguchi, General Manager of IR Department
Tel: +(81)6-6245-1113
Scheduled date of filing of Quarterly Report:
February 10, 2023
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results: None
Holding of quarterly financial results meeting:
None
Stock code:
Representative:
Inquiries:(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Third Quarter (April 1, 2022 to December 31, 2022) of FY3/23(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales

Operating profit

Millions of yen% Millions of yen

Profit attributable toowners of parent

Ordinary profit% Millions of yen% Millions of yen

171,562
17.8
10,771
5.1
14,565
9.2
Nine months ended Dec. 31, 2022
Nine months ended Dec. 31, 2021
145,628
39.2
10,25086.4
13,34292.1
Note: Comprehensive income (millions of yen): Nine months ended Dec. 31, 2022: 13,337 (up 31.1%)
Nine months ended Dec. 31, 2021: 10,171 (down 23.1%)
Diluted net income
Net income per shareper share
Yen

Nine months ended Dec. 31, 2022
Nine months ended Dec. 31, 2021

(2) Consolidated financial position

292.90265.10Total assets

Net assets

Millions of yen

Millions of yen

Shareholders’ equity ratio%

As of Dec. 31, 2022
249,266
200,329
244,671
191,937
As of Mar. 31, 2022
Reference: Shareholders’ equity (millions of yen): As of Dec. 31, 2022: 177,389

2. Dividends
Yen

10.6
66.0

Yen

293.84266.19

1Q-end

%

8,477
7,667

2Q-end

Yen

71.2
69.6
As of Mar. 31, 2022: 170,296

Dividend per share
3Q-endYen

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

Year-end

Total

Yen

Yen

67.00

102.0062.00

102.00For further details, please refer to the press release dated today (February 6, 2023) about earnings forecast and dividend forecast(Japanese version only).

3. Consolidated Forecasts for FY3/23 (April 1, 2022 to March 31, 2023)
Net sales
Millions of yen

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
220,000
9.1
12,700 (11.5)
16,500(7.9)
Note: Revisions to the most recently announced consolidated earnings forecast: Yes

Millions of yen

9,300

%

(5.0)

Yen

322.31

For further details, please refer to “1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanationof Consolidated Forecast and Other Forward-looking Statements” on page 3 and the press release dated today (February 6, 2023)
about earnings forecast and dividend forecast (Japanese version only).

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

(4) Number of outstanding shares (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
As of Dec. 31, 2022:

34,837,230 shares

As of Mar. 31, 2022:

34,837,230 shares

As of Mar. 31, 2022:

6,008,176 shares

Nine months ended Dec. 31, 2021:

28,805,827 shares

2) Number of treasury shares at the end of the period
As of Dec. 31, 2022:

5,971,797 shares

3) Average number of shares outstanding during the period
Nine months ended Dec. 31, 2022:

28,851,376 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 Nine-month Period

7

Quarterly Consolidated Statement of Comprehensive Income
For the Nine-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 nine months of the fiscal year ending March 31, 2023, there was a slow recovery of the Japanese
economy as economic activity began returning to normal due to the progress of With Corona policy. Despite thisimprovement, there is an increasing downward pressure on the economy from the rising cost of resources andenergy caused by the Ukraine crisis, higher prices of imported goods because of the yen’s decline and otherreasons.
In the United States, concerns about slowing economic growth are increasing because of inflation and monetary
tightening. In China, the zero-COVID policy, real estate market downturn and other factors are holding down
demand and economic growth. In Europe, economic growth is slowing because of accelerated inflation, which israising the cost of energy and other items, and rising interest rates.
In Japan, while automobile production seems to be picking up as semiconductor supply shortages have eased andby other factors, residential construction and machinery orders are weak. Under the circumstances, orders andproduction have been declining in the steel industry.
In overseas steel markets, economic recovery was anticipated in China after its zero-COVID policy was reversed.
Although the economy did show signs of improvement, the overall economy remains weak because of economic
slowdowns in several regions.
The Yodogawa Steel Group’s net sales in the first nine months increased 25,934 million yen to 171,562 million
yen. Operating profit increased 521 million yen to 10,771 million yen, ordinary profit increased 1,222 million yen
to 14,565 million yen, and profit attributable to owners of parent increased 809 million yen to 8,477 million yen.
In Japan, sales and earnings increased mainly due to higher sales of steel sheets resulting from an improvement inselling prices.
Overseas, sales increased on the yen basis at Taiwan subsidiary Sheng Yu Steel Co., Ltd. (SYSCO) as foreignexchange rate changes had a positive effect. However, earnings were down mainly because overseas markets
weakened.
Business segment performance was as follows.
1) Steel Sheet-related BusinessNet sales totaled 164,768 million yen and operating profit was 11,199 million yen. Sales and earnings increased.
Steel Sheets
In Japan, there were sales volume declines of galvanized steel sheets for specific high-demand customers
primarily because of the lack of growth in demand in the building construction sector. However, sales andearnings increased mainly due to revisions of selling prices of all types of steel sheets.
Sales on a yen basis increased at SYSCO because foreign exchange rate changes had a positive effect, butearnings were lower as total sales volume declined since it was significantly affected by market conditions
overseas. At Yodogawa Shengyu (Hefei) High-Tech Steel Co., Ltd. (YSS), a subsidiary in China, sales andearnings were down because of the negative impact of lockdowns of Shanghai and other major cities due to thezero-COVID policy. Sales and earnings of PCM Processing (Thailand) Ltd. (PPT), our Thai subsidiary, increased
because of the steady sales of high value-added products and revisions of selling prices.
Building Material & Exterior Products
Despite lower sales volume, sales increased mainly because of product price revisions and other reasons.
Construction sales also increased as a large project was completed, and construction progressed at other major
projects.
2) Roll BusinessNet sales totaled 2,059 million yen and operating loss was 233 million yen.
Sales increased because export volume of rolls used in the steel industry increased but there was an operating loss

due to cost increases caused by rising material prices.
3) Grating BusinessNet sales totaled 2,602 million yen and operating profit was 46 million yen.
Sales were almost the same as one year earlier, but earnings decreased as the higher cost.
4) Real Estate BusinessNet sales totaled 925 million yen and operating profit was 604 million yen.
Sales and earnings were slightly lower because of a lower occupancy rate at tenant-occupied buildings, anincrease in depreciation due to facility repairs and renewals, and other factors.
5) Other Businesses
Net sales totaled 1,206 million yen and operating profit was 203 million yen.
Sales increased due to higher sales in the materials sales business but earnings declined because of lower sales in
the warehousing and golf facilities businesses.
(2) Explanation of Financial Position
AssetsCurrent assets increased by 5,514 million yen from the end of the previous fiscal year to 150,038 million yen.
This was attributable mainly to increases of 2,848 million yen in cash and deposits, 1,129 million yen in notes
and accounts receivable-trade, and contract assets, 1,697 million yen in electronically recorded monetaryclaims-operating, a decrease of 2,110 million yen in securities, and an increase of 5,643 million yen in
inventories.
Non-current assets decreased by 919 million yen from the end of the previous fiscal year to 99,227 million yen.
This was mainly attributable to an increase of 1,129 million yen in property, plant and equipment, and a decreaseof 2,340 million yen in investment securities.
Total assets increased by 4,595 million yen from the end of the previous fiscal year to 249,266 million yen.
Liabilities
Current liabilities decreased by 3,038 million yen from the end of the previous fiscal year to 34,519 million yen.
This was attributable mainly to decreases of 1,375 million yen in notes and accounts payable-trade, 1,605 million
yen in income taxes payable, 798 million yen in provision for bonuses and an increase in 757 million yen inelectronically recorded obligations-operating.
Non-current liabilities decreased by 758 million yen from the end of the previous fiscal year to 14,416 million
yen. This was attributable mainly to a decrease of 541 million yen in deferred tax liabilities included in othernon-current liabilities.
Total liabilities decreased by 3,796 million yen from the end of the previous fiscal year to 48,936 million yen.
Net assets
Net assets increased by 8,391 million yen from the end of the previous fiscal year to 200,329 million yen. This
was attributable mainly to increases of 5,475 million yen in retained earnings and 3,122 million yen in foreign
currency translation adjustment.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
The outlook for the global economy is expected to remain unclear because of a combination of factors. Even
though the Chinese economy is anticipated to recover following the reversal of its zero-COVID policy, concerns
remain over an economic downturn caused by the effects of a prolonged Ukraine-Russia conflict and monetary
tightening in the United States and Europe.

In the steel market, there are concerns that the Japanese market will be affected by continued weakness inoverseas markets. Due to this situation, the steel market, including the balance between supply and demand, islikely to remain unstable for the time being.
The Yodogawa Steel Group as well is likely to continue to operate in a challenging business climate due to theunpredictability and instability of demand and expenses in all regions.
To succeed in this uncertain business climate, all group companies are focusing on speed and agility concerning
both sales and production activities to respond to rapidly changing market conditions. The fiscal year ending inMarch 2023 is the final year of the Medium-term Management Plan 2022. We will continue to establish positions
in new markets and increase sales of high value-added products in the plan’s final year in order to become evenmore profitable.
The forecast for consolidated performance in 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(Millions of yen)
Third quarter of FY3/23(as of Dec. 31, 2022)

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

31,872

34,720Notes and accounts receivable-trade, and contract assets

53,67154,800Electronically recorded monetary claims-operating

3,412

5,110

Securities

2,120

9

Merchandise and finished goods

22,027

22,338Work in process

6,801

6,525

Raw materials and supplies

17,49923,106

Other

7,229

3,537

Allowance for doubtful accounts

(110)

(110)

144,523

150,038

Property, plant and equipment

56,45957,589Intangible assets

1,966

2,061

Investment securities

40,67838,337Retirement benefit asset

441

473

Other

601

765

Total current assets
Non-current assets

Investments and other assets

Total investments and other assets

41,721

39,576100,147

99,227

244,671249,266

Notes and accounts payable-trade

20,676

19,301

Electronically recorded obligations-operating

2,329

3,086

Short-term borrowings

1,320

1,422

Income taxes payable

3,590

1,985

Provision for bonuses

1,658

860

671

825

Total non-current assets
Total assets
Liabilities
Current liabilities

Provision for product warranties
Other

7,309

7,038

Total current liabilities

37,55734,51939

31

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

6,285

6,118

Other

8,851

8,266

Total non-current liabilities

15,175

14,41652,73348,936

Total liabilities

FY3/22(as of Mar. 31, 2022)(Millions of yen)
Third quarter of FY3/23(as of Dec. 31, 2022)

Net assets
Shareholders’ equity
Share capital

23,22023,220Capital surplus

18,272

18,268Retained earnings

118,475

123,950

Treasury shares(11,992)(11,908)

Total shareholders’ equity

147,977

153,531

Valuation difference on available-for-sale securities

16,174

14,653

Revaluation reserve for land

1,609

1,526

Accumulated other comprehensive income

Deferred gains or losses on hedges(0)-

Foreign currency translation adjustment

4,433

7,556

Remeasurements of defined benefit plans

101

122

22,31923,858

187

155

Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests

21,45422,785

Total net assets

191,937

200,329

244,671249,266

Total liabilities and net assets

(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statement of Income)(For the Nine-month Period)First nine months of FY3/22(Apr. 1, 2021 to Dec. 31, 2021)(Millions of yen)First nine months of FY3/23(Apr. 1, 2022 to Dec. 31, 2022)

Net sales

145,628

171,562

Cost of sales

120,959

145,329

Gross profit

24,66826,232

Selling, general and administrative expenses

14,41815,461

Operating profit

10,25010,771Non-operating income
Interest income

219

290

Dividend income

1,076

1,125

Foreign exchange gains

182

687

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

785

1,245

534

511

Total non-operating income

562

193

3,360

4,053

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

49

88

138

132

80

38

Total non-operating expenses

268

260

13,342

14,565

148

185

-

0

148

185

268

133

1

-

Impairment losses

164

835

Total extraordinary losses

434

968

Profit before income taxes

13,056

13,782

Income taxes-current

3,330

4,132

Income taxes-deferred

192

(12)

3,522

4,120

Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Other
Total extraordinary income
Extraordinary losses
Loss on sale and retirement of non-current
assetsLoss on valuation of investment securities

Total income taxes
Profit

9,534

9,662

Profit attributable to non-controlling interests

1,866

1,184

Profit attributable to owners of parent

7,667

8,477

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

ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Deferred gains or losses on hedges
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 toComprehensive income attributable to ownersof parent
Comprehensive income attributable tonon-controlling interests

First nine months of FY3/22(Apr. 1, 2021 to Dec. 31, 2021)(Millions of yen)First nine months of FY3/23(Apr. 1, 2022 to Dec. 31, 2022)

9,534

9,662

(2,828)(1,516)

3,407

5,159

-

0

55

29

3

0

637

3,675

10,171

13,337

6,955

10,100

3,216

3,237

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

Segment and Other Information
Segment information
I. First nine months of FY3/22 (Apr. 1, 2021 to Dec. 31, 2021)
1. Information related to net sales and profit/loss for each reportable segment
Reportable segments
Steel
Real
Roll
Grating
Sheet-related
EstateBusiness 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
139,4231,921
2,562
956 144,863
764 145,628
145,628
Inter-segment
314
314
1,961
2,276
(2,276)sales and transfers
Total
139,423
1,921
2,562
1,271 145,178
2,726 147,904(2,276)145,628
Segment profit
10,0026584
643
10,796
325
11,121(871)
10,250Notes: 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 (865) million yen and an elimination forinter-segment transactions of (5) million yen.
3. Segment profit 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 amountof the impairment losses was 162 million yen in the first nine months of FY3/22.

II. First nine months of FY3/23 (Apr. 1, 2022 to Dec. 31, 2022)
1. Information related to net sales and profit/loss for each reportable segment
Reportable segments
Steel
Real
Roll
Grating
Sheet-related
EstateBusiness 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
164,7682,059
2,602
925 170,355
1,206 171,562
171,562Inter-segment
318
318
2,068
2,386
(2,386)sales and transfers
Total
164,768
2,059
2,602
1,243 170,673
3,275 173,949(2,386)
171,562
Segment profit
11,199(233)
46604
11,617203
11,820(1,049)10,771(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 (1,042) million yen and an elimination forinter-segment transactions of (6) 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 amountof the impairment losses was 835 million yen in the first nine months of FY3/23.
This summary report is solely a translation of “Kessan Tanshin” (in Japanese, including the attachments), which has been
prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers
who prefer an English translation.