August 2, 2018

Summary of the Consolidated Financial Results for the First Quarterof the Fiscal Year Ending March 31, 2019 (FY3/19)(Three Months Ended June 30, 2018)[Japanese GAAP]
Company name:

Yodogawa Steel Works, Ltd.
Stock exchange listed: Tokyo, 1st Section
Stock code:
5451
URL: http://www.yodoko.co.jp/
Representative:
Satoshi Nitta, President and Representative Director
Inquiries:
Yasunori Osumi, Executive Officer, General Manager of IR Department
Tel: +(81)6-6245-1113
Scheduled date of filing of Quarterly Report:
August 10, 2018
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results: None
Holding of quarterly financial results meeting:None(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Quarter (April 1, 2018 to June 30, 2018) of FY3/19(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales

Operating profit

Millions of yen

Three months ended Jun. 30, 2018
Three months ended Jun. 30, 2017

% Millions of yen

41,70642,955

Note: Comprehensive income (millions of yen):

(2.9)
19.3

2,286
4,131

% Millions of yen(44.7)
23.8

3,333
4,621

Three months ended Jun. 30, 2018:
Three months ended Jun. 30, 2017:% Millions of yen(27.9)
35.9

2,270
2,715

%

(16.4)
54.1

639 (down 87.1%)
4,942 (-%)

Diluted net income
per share

Net income per share
Three months ended Jun. 30, 2018
Three months ended Jun. 30, 2017

Profit attributable toowners of parent

Ordinary profit

Yen

Yen

76.56
91.29

76.24
90.92

(2) Consolidated financial position
Total assets

Shareholders’ equity ratio

Net assets

Millions of yen

Millions of yen%

212,948
215,638

170,005
170,574

71.2
70.3

As of Jun. 30, 2018
As of Mar. 31, 2018

Reference: Shareholders’ equity (millions of yen):
As of Jun. 30, 2018:
151,674
As of Mar. 31, 2018: 151,586
Starting with the beginning of the first quarter of the current fiscal year, Yodogawa Steel Works is applying “Partial Amendm ents to
Accounting Standard for Tax Effect Accounting” (Accounting Standards Board of Japan (ASBJ) Statement No. 28, February 16, 201 8).
Prior-year figures have been adjusted retroactively to conform with this accounting standard.

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

Total

Yen

Yen

Yen

Yen

Yen

-

35.00

-

40.00

75.00

30.00

-

-

-

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

Note: Revisions to the most recently announced dividend forecast: Yes
There is currently no forecast for year-end dividends for the fiscal year ending March 31, 2019. For further details, please refer to thepress release dated today (August 2, 2018) about earnings forecast and dividend forecast (Japanese version only).

3. Consolidated Forecasts for FY3/19 (April 1, 2018 to March 31, 2019)
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

84,000
-

(1.0)
-

3,400
-

(49.6)-

4,900-(34.9)-

3,000-(32.6)-

101.17-

Note: Revisions to the most recently announced consolidated earnings forecast: Yes
No full year forecasts are presented because of the difficulty of determining a reliable forecast for the Yodogawa Steel Group ’s results ofoperations in the fiscal year ending March 31, 2019. For further details, please refer to “1. Qualitative Information on Quarterly
Consolidated Financial Performance, (3) Explanation of Consolidated Forecast and Other Forward-looking Statements” on page 4 and thepress release dated today (August 2, 2018) 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 sta tements: None
(3) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: None
4) Restatements: None

(4) Number of outstanding shares (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
As of Jun. 30, 2018:35,837,230 shares

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

As of Mar. 31, 2018:

6,185,228 shares

Three months ended Jun. 30, 2017:

29,748,163 shares

2) Number of treasury shares at the end of the period
As of Jun. 30, 2018:

6,184,158 shares

3) Average number of shares outstanding during the period
Three months ended Jun. 30, 2018:

29,652,187 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 t heCompany’s management at the time the materials were prepared. These materials are not promises by the Compan y regarding
future performance. Actual results may differ significantly from these forecasts for a number of reasons. For a discussion of theassumptions for forecasts, precautions concerning usage and other information, please refer to “1. Qualitative Information on
Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated Forecast and Other Forward -looking
Statements” on page 4.

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/19

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

2(2) Explanation of Financial Position

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

4

2. Quarterly Consolidated Financial Statements and Notes

5(1) Quarterly Consolidated Balance Sheet

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

7

Quarterly Consolidated Statement of Income
For the Three-month Period

7

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

8(3) Notes to Quarterly Consolidated Financial Statements

9

Going-concern Assumption

9

Significant Changes in Shareholders’ Equity

9

Segment and Other Information

9

1

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/19

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first quarter of the fiscal year ending March 31, 2019, the Japanese economy continued to recover slowly.
One reason was a rebound in exports due to the strength of the global economy. In addition, capital expenditures
are moving up slowly as machinery orders, which are a leading economic indicator, increase.
In the United States, corporate earnings are strong due to the support of recoveries in internal and external
demand and the benefits of the recent tax cut. Consumer spending is also fi rm because of strength in the labormarket and personal income. In Europe, although economic growth is slowing, the European Central Bank has
decided to end quantitative easing by the end of the year in order to return to a more normal monetary policy. The
pace of economic growth is slowing in China too, but exports and consumer spending are still healthy.
In the Japanese steel industry, shipments of ordinary steel products in Japan were higher than one year earlier as
production continued to grow in the automobile, industrial machinery and other industries that use steel. Although
imports of steel increased, prices of steel products stayed high because the balance between supply and demandremained stable.
In the global steel market, international prices of steel products were stable as steel consumption in China
continues to be high. However, worries are increasing rapidly about the effects of U.S. trade protectionism on the
global steel market.
The Yodogawa Steel Group’s net sales in the first quarter decreased 1,249 million yen to 41,706 million yen.
Operating profit decreased 1,844 million yen to 2,286 million yen, ordinary profit decreased 1,287 million yen to
3,333 million yen, and profit attributable to owners of parent decreased 445 million yen to 2,270 million yen.
In Japan, sales of steel sheet products decreased because of sales activities that placed priority on profitability.
But total sales in Japan were higher because of progress with price revisions. Overseas sales declined. At Sheng
Yu Steel Co., Ltd. (SYSCO), a subsidiary in Taiwan, sales were down due to sluggish construction expendituresin Taiwan caused by tighter building regulations and to the significant negative impact of U.S. tradeprotectionism. The decline in earnings was attributable primarily to a decrease in earnings at SYSCO and lower
earnings at Yodogawa-Shengyu (Hefei) High-Tech Steel Co., Ltd. (YSS), a subsidiary in China, and PCM
Processing (Thailand) Ltd. (PPT), a subsidiary in Thailand.
Results by business segment are as follows.
1) Steel Sheet-related BusinessNet sales totaled 38,758 million yen and operating profit was 2,254 million yen.
Steel Sheet Segment
In Japan, the volume of steel sold to specific high-demand customers decreased mainly because of the retentionof the policy of placing priority on profitability for orders of galvanized sheets. The sales volume of pre -painted
sheets increased mainly because of strong sales of large home appliances in Japan. Retail sales of steel for general
distribution decreased because of a more selective stance for accepting orders, mostly for galvanized sheets.
In Taiwan, there was a big decline in sales volume primarily for two reasons. First is the lack of growth inconstruction expenditures following the enactment of tighter building regulations. Second is a downturn inprospective orders caused by concerns about the possibility of U.S. steel import restrictions. There were also
sales volume declines at YSS and PPT as sales activities at these companies placed emphasis on profit ability.
Building Material & Exterior Products Segment
In the building materials category, there was no change from one year earlier in the sales volume of roofing
products, the result of a selective stance regarding orders, but an increase in sales of Y ODO fire-proof panel
Grand Wall (Grand Wall). In the exterior products category, sales of storage sheds were strong along with therecovery in consumer spending. Construction sales decreased because the first quarter of the previous fiscal year
included sales from large projects for the installation of Grand Wall.

2

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/19

As a result, total sales in the steel sheet-related business were lower than one year earlier.
2) Roll BusinessNet sales totaled 800 million yen and operating loss was 26 million yen.
Sales decreased mainly because of a decline in the sales volume of rolls to companies in the Japanese steel
industry.
3) Grating BusinessNet sales totaled 792 million yen and operating profit was 1 million yen.
First quarter performance was about the same as one year earlier as sound private-sector demand offset a drop in
public-sector projects.
4) Real Estate BusinessNet sales totaled 282 million yen and operating profit was 200 million yen.
Sales increased because of a higher occupancy rate at tenant -occupied buildings and higher sales at other leased
properties.
5) Other Businesses
Net sales totaled 1,072 million yen and operating profit was 132 million yen.
Higher sales in material sales operations raised sales in this segment.
(2) Explanation of Financial Position
AssetsCurrent assets decreased by 1,133 million yen from the end of the previous fiscal year to 115,525 million yen.
This was attributable mainly to decreases of 1,013 million yen in notes and accounts receivable-trade, 682 million
yen in cash and deposits, and an increase of 497 million yen in securities.
Non-current assets decreased by 1,557 million yen from the end of the previous fiscal year to 97,422 million yen.
This was mainly attributable to decreases of 769 million yen in leased assets included in property, plant andequipment and 690 million yen in investment securities.
Total assets decreased by 2,690 million yen from the end of the previous fiscal year to 212,948 million yen.
Liabilities
Current liabilities decreased by 2,127 million yen from the end of the previous fiscal year to 26,119 million yen.
This was attributable mainly to decreases of 767 million yen in income taxes payable, 750 million yen in leaseobligations included in other, and 538 million yen in provision for bonuses.
Non-current liabilities increased by 6 million yen from the end of the previous fiscal year to 16,823 million yen.
This was attributable mainly to an increase of 188 million yen in long-term deferred tax liabilities and a decreaseof 110 million yen in provision for waste disposal expenses included in other non-current liabilities.
Total liabilities decreased by 2,121 million yen from the end of the previous fiscal year to 42,943 million yen.
Net assets
Net assets decreased by 569 million yen from the end of the previous fiscal year to 170,005 million yen. This was
attributable mainly to an increase of 1,084 million yen in retained earnings, and decreases of 915 million yen inforeign currency translation adjustment and 655 million yen in non-controlling interests.

3

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/19(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
Although the global economy is generally healthy, the uncertainty of the economic outlook is increasing rapidly.
Major causes are worries about an increasingly heated trade war involving China and Europe triggered by U.S.
trade protectionism, the risk of an economic slowdown due to rising U.S. interest rates, and geopolitical risk
associated with tension in the Middle East and North Korea.
In Japan, the short-term outlook for the economy is positive. There are reasons for concern about the economy,notably the effects of U.S. trade protectionism and the rising cost of crude oil caused by rising geopolitical risk.
But the Japanese economy will probably be supported by growi ng exports backed by overseas economic
recoveries and increasing capital expenditures for the 2020 Tokyo Olympics and projects to improve productivity.
In the steel industry, no change is anticipated in the current situation with a positive short -term outlook forJapan’s steel market and extreme uncertainty about the overseas market for steel products. The overseas
subsidiaries of the Yodogawa Steel Group are highly vulnerable to shifts in the overseas steel market. In addition,
prices of hot-rolled steel sheets, zinc and other raw materials are expected to remain high. As a result, we expect
significant negative pressure on earnings to continue.
The fiscal year ending in March 2019 is the second year of the Yodogawa Steel Group Medium -Term
Management Plan 2019. To achieve the goals of this plan, all companies are working on becoming more
profitable by establishing positions in new markets and increasing sales of value -added products while taking fulladvantage of the speed and flexibility that are key strengths of the group.
The forecast for consolidated performance in the first half of the current fiscal year is based on this outlook forthe economy and steel market. No fiscal year forecast is presented because of the difficulty of determining a
reliable forecast for the Yodogawa Steel Group’s results of operations in the fiscal year ending March 31, 2019 at
this time due to the extremely uncertain outlook for the steel market. An announcement will be made promptly
once it becomes possible to determine a reliable forecast.

4

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/19

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Millions of yen)First quarter of FY3/19(as of Jun. 30, 2018)

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

30,71630,033

Notes and accounts receivable-trade43,93842,925

Securities

2,888

3,386

Merchandise and finished goods

16,081

16,293Work in process

4,684

4,400

Raw materials and supplies

13,122

13,175

Other

5,376

5,460

Allowance for doubtful accounts

(149)

(148)

116,658

115,525

50,50949,628

7

6

Other

1,475

1,462

Total intangible assets

1,482

1,469

46,33845,647649

677

46,987

46,324

98,98097,422

215,638

212,948

18,15418,041-

304

Income taxes payable

2,165

1,397

Provision for bonuses

1,056

518

Other

6,870

5,857

Total current liabilities

28,247

26,119Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Goodwill

Investments and other assets
Investment securities
Other
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payableNon-current liabilities
Provision for directors’ retirement benefits

66

68

Net defined benefit liability

7,569

7,519

Other

9,181

9,234

Total non-current liabilities

16,817

16,82345,06442,943

Total liabilities

5

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/19

FY3/18(as of Mar. 31, 2018)(Millions of yen)First quarter of FY3/19(as of Jun. 30, 2018)

Net assets
Shareholders’ equity
Capital stock

23,22023,220Capital surplus

20,393

20,392Retained earnings

100,775

101,859

Treasury shares(12,679)(12,677)

Total shareholders’ equity

131,710

132,795

Valuation difference on available-for-sale securities

16,42016,228

Revaluation reserve for land

1,646

1,646

Foreign currency translation adjustment

2,798

1,882

Remeasurements of defined benefit plans

(990)

(878)

Total accumulated other comprehensive income

19,87518,879

Accumulated other comprehensive income

Share acquisition rights

223

221

Non-controlling interests

18,764

18,108

Total net assets

170,574

170,005

215,638

212,948

Total liabilities and net assets

6

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/19(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statement of Income)(For the Three-month Period)(Millions of yen)First three months of FY3/19(Apr. 1, 2018 to Jun. 30, 2018)

First three months of FY3/18(Apr. 1, 2017 to Jun. 30, 2017)
Net sales

42,95541,706

Cost of sales

34,29635,127Gross profit

8,659

6,579

Selling, general and administrative expenses

4,528

4,292

Operating profit

4,131

2,286

Interest income

93

136

Dividend income

356

410

-

465

Non-operating income

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

99

116

162

139

Total non-operating income

711

1,269

Interest expenses

30

20

Foreign exchange losses
Cost for employees transferred temporarily tooverseas subsidiaries
Other

102

126

74

65

12

9

Total non-operating expenses

220

222

4,621

3,333

Gain on sales of non-current assets

0-

Total extraordinary income

0-

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

7

16

3

2

Loss on valuation of investment securities-

12

Non-operating expenses

Ordinary profit
Extraordinary income

Total extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred

11

30

4,610

3,302

953

854

386

161

Total income taxes

1,339

1,016

Profit

3,271

2,286

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

7

555

16

2,715

2,270

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/19(Quarterly Consolidated Statement of Comprehensive Income)(For the Three-month Period)First three months of FY3/18(Apr. 1, 2017 to Jun. 30, 2017)
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

8(Millions of yen)First three months of FY3/19(Apr. 1, 2018 to Jun. 30, 2018)

3,271

2,286

1,051

(188)

456

(1,606)

139

166

23

(18)

1,670

(1,647)

4,942

639

4,043

1,273

898

(634)

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/19(3) Notes to Quarterly Consolidated Financial Statements
Going-concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Not applicable.
Segment and Other Information
Segment information
I. First three months of FY3/18 (Apr. 1, 2017 to Jun. 30, 2017)
Information related to net sales and profit/loss for each reportable segment
Reportable segments
Steel
Roll
Sheet-related
Business
Business

Grating
BusinessReal
EstateBusiness

Total

Others(Note 1)

Total

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

Net sales
External sales
Inter-segment
sales and transfers
Total

40,009

976

786

250

42,022933

42,955-42,955

-

-

-

110

110

630

740

(740)

-

40,009

976

786

360

42,133

1,563

43,696(740)

42,955

Segment profit
4,018
97
19
165
4,299
111
4,411
(280)
4,131
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 (280) million yen and an elimination forinter-segment transactions of 0 million yen.
3. Segment profit is adjusted to be consistent with the operating profit on the quarterly consolidated statement ofincome.

II. First three months of FY3/19 (Apr. 1, 2018 to Jun. 30, 2018)
Information related to net sales and profit/loss for each reportable segment
Reportable segments
Steel
Roll
Sheet-related
Business
Business

Grating
BusinessReal
EstateBusiness

Total

Others(Note 1)

Total

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

Net sales
External sales
38,758800
792
282
40,633
1,072
41,706
41,706
Inter-segment
110
110
638
749
(749)
sales and transfers
Total
38,758800
792
393
40,744
1,711
42,455(749)
41,706
Segment profit
2,254
(26)
1
200
2,430
132
2,562
(276)
2,286
(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 (277) million yen and an elimination forinter-segment transactions of 0 million yen.
3. Segment profit (loss) is adjusted to be consistent with the operating profit on the quarterly consolidated statementof income.
This summary report is solely a translation of “Kessan Tanshin” (in Japanese, including the attachments), which has been
prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers
who prefer an English translation.

9