August 2, 2019

Summary of the Consolidated Financial Results for the First Quarterof the Fiscal Year Ending March 31, 2020 (FY3/20)(Three Months Ended June 30, 2019)[Japanese GAAP]
Company name:

Yodogawa Steel Works, Ltd.
Stock exchange listed: Tokyo, 1st Section
5451
URL: http://www.yodoko.co.jp/
Satoshi Nitta, President and Representative Director
Yasunori Osumi, Senior Executive Officer, General Manager of IR Department
Tel: +(81)6-6245-1113
Scheduled date of filing of Quarterly Report:
August 9, 2019
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results: None
Holding of quarterly financial results meeting:
None
Stock code:
Representative:
Inquiries:(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Quarter (April 1, 2019 to June 30, 2019) of FY3/20(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales

Operating profit

Millions of yen

Three months ended Jun. 30, 2019
Three months ended Jun. 30, 2018

% Millions of yen

38,761
41,706

Note: Comprehensive income (millions of yen):

(7.1)
(2.9)

1,730
2,286

% Millions of yen(24.3)(44.7)

1,934
3,333

Three months ended Jun. 30, 2019:
Three months ended Jun. 30, 2018:% Millions of yen(42.0)(27.9)

1,416
2,270

%

(37.6)(16.4)

1,152 (up 80.3%)
639 (down 87.1%)

Diluted net income
per share

Net income per share
Three months ended Jun. 30, 2019
Three months ended Jun. 30, 2018

Profit attributable toowners of parent

Ordinary profit

Yen

Yen

48.04
76.56

47.86
76.24

(2) Consolidated financial position
Total assets

Shareholders’ equity ratio

Net assets

Millions of yen

Millions of yen%

As of Jun. 30, 2019
As of Mar. 31, 2019

207,282
209,465

167,622
167,67172.5
71.7

Reference: Shareholders’ equity (millions of yen):

As of Jun. 30, 2019:

150,267

As of Mar. 31, 2019:

150,236

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

Total

Yen

Yen

Yen

Yen

Yen

-

30.00

-

40.00

70.00

25.00

-

-

-

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

Note: Revisions to the most recently announced dividend forecast: None
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

79,000
-

(5.6)
-

2,900
-

(5.0)
-

3,400
-

(25.4)-

1,900-(33.1)-

64.46-

Note: Revisions to the most recently announced consolidated earnings forecast: Yes
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. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation ofConsolidated Forecast and Other Forward-looking Statements” on page 3.

* 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: Yes
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: None
4) Restatements: None
Note: For further details, please refer to “2. Quarterly Consolidated Financial Statements and Notes, (3) Notes to Qua rterly
Consolidated Financial Statements (Changes in Accounting Policies)” on page 8.

(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, 2019:35,837,230 shares

As of Mar. 31, 2019:35,837,230 shares

As of Mar. 31, 2019:

6,361,610 shares

Three months ended Jun. 30, 2018:

29,652,187 shares

2) Number of treasury shares at the end of the period
As of Jun. 30, 2019:

6,360,975 shares

3) Average number of shares outstanding during the period
Three months ended Jun. 30, 201929,475,949 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 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.
Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated Forecast and Other
Forward-looking Statements” on page 3.

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/20

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

6

Quarterly Consolidated Statement of Income
For the Three-month Period

6

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

7(3) Notes to Quarterly Consolidated Financial Statements

8

Going-concern Assumption

8

Significant Changes in Shareholders’ Equity

8

Changes in Accounting Policies

8

Segment and Other Information

9

1

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/20

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
During the first quarter of the fiscal year ending March 31, 2020, the gradual recovery of the Japanese economy
continued, but the economic outlook is becoming increasingly uncertain due to slowing growth of overseas
economies and to other reasons.
The outlook for the global economy also remains unclear. Consumer spending is recovering in the United States
and the European and ASEAN economies are recovering slowly, but there is uncertainty about the effects of the
U.S.-China trade friction on the Chinese economy.
In the Japanese steel industry, market conditions were generally favorable as production and sales of automobiles
and home appliances increased. However, construction starts were slow.
In the global steel market, there is an increasing risk of a downturn in prices of steel products because of U.S.
restrictions on steel imports and concerns about slowing economic growth in China and other areas of the world.
The Yodogawa Steel Group’s net sales in the first quarter decreased 2,944 million yen to 38,761 million yen.
Operating profit decreased 555 million yen to 1,730 million yen, ordinary profit decreased 1,399 million yen to
1,934 million yen, and profit attributable to owners of parent decreased 854 million yen to 1,416 million yen.
In Japan, sales were higher than one year earlier due to an increase in retail sales of steel sheets for general
distribution and sales growth in the construction sector. Earnings i n Japan declined mainly because of the higher
cost of major raw materials and a smaller contribution to earnings from inventory valuations than in the previous
fiscal year.
Overseas, sales and earnings decreased. The primary cause was the difficult busine ss climate at Taiwan subsidiary
Sheng Yu Steel Co., Ltd. (SYSCO) in both the domestic and export markets.
Results by business segment are as follows.
1) Steel Sheet-related BusinessNet sales totaled 35,957 million yen and operating profit was 1,767 mill ion yen. Sales and earnings declined.
Steel Sheet Segment
In Japan, there was a decrease in sales of plated steel sheets to specific high-demand customers caused in part by
an increase in Japan’s imports of these sheets. Exports were also weak because of s luggish conditions in overseas
markets. Despite these declines, total sales in Japan were higher than one year earlier mainly due to growth inretail sales of steel sheets for general distribution.
At Taiwan subsidiary SYSCO, the sales volume decreased and there was an operating loss mainly because of U.S.
trade protectionism. In addition, the operating environment remained challenging for subsidiary
Yodogawa-Shengyu (Hefei) High-Tech Steel Co., Ltd. (YSS) in China and subsidiary PCM Processing (Thailand)Ltd. (PPT) in Thailand.
Building Material & Exterior Products Segment
Sales decreased in the building materials category due to the low volume of sales in all sectors. Sales of exterior
products increased due to price revisions. Construction sales were hi gher because of an increase in completions oflarge projects.
2) Roll BusinessNet sales totaled 689 million yen and operating loss was 65 million yen.
Sales and earnings decreased because of the decrease of shipments caused by problems created by improper
activities involving the quality of roll products last year.

2

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/20

3) Grating BusinessNet sales totaled 842 million yen and operating profit was 12 million yen.
Sales and earnings increased because of steady progress with price revisions and the large volume of sales.
4) Real Estate BusinessNet sales totaled 297 million yen and operating profit was 212 million yen.
Sales and earnings increased because of a higher occupancy rate at tenant-occupied buildings.
5) Other Businesses
Net sales totaled 974 million yen and operating profit was 98 million yen.
Sales and earnings decreased because of lower sales in material sales operations.
(2) Explanation of Financial Position
AssetsCurrent assets decreased by 1,437 million yen from the end of the previous fiscal year to 119,318 million yen.
This was attributable mainly to an increase of 317 million yen in cash and deposits, a decrease of 2,251 million
yen in notes and accounts receivable-trade, and an increase of 998 million yen in inventories.
Non-current assets decreased by 745 million yen from the end of the previous fiscal year to 87,964 million yen.
This was mainly attributable to decreases of 685 million yen in investment securities and 144 million yen inproperty, plant and equipment.
Total assets decreased by 2,182 million yen from the end of the previous fiscal year to 207,282 million yen.
Liabilities
Current liabilities decreased by 2,315 million yen from the end of the previous fiscal year to 24,853 million yen.
This was attributable mainly to a decrease of 1,316 million yen in income taxes payable.
Non-current liabilities increased by 181 million yen from the end of the previous fiscal year to 14,806 million yen.
This was attributable mainly to an increase of 152 million yen in deferred tax liabilities included in othernon-current liabilities.
Total liabilities decreased by 2,133 million yen from the end of the previous fiscal year to 39,660 million yen.
Net assets
Net assets decreased by 49 million yen from the end of the previous fiscal year to 167,622 million yen. This was
attributable mainly to an increase of 237 million yen in retained earnings, a decrease of 420 million yen invaluation difference on available-for-sale securities, an increase of 172 million yen in foreign currency translation
adjustment, and a decrease of 78 million yen in non-controlling interests.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
Although the U.S. economy is healthy, the outlook for the global economy is becoming increasingly unc lear due
to slowing economic growth in China, the effects of U.S. -China trade friction and other trade problems, and otherreasons.
In Japan, the economy is expected to remain healthy with the support of improvements in the labor market andpersonal income and other sources of strength. However, there are concerns about the possibility of a slowdownof Japan’s economic recovery caused by decreasing exports linked to declining economic growth in China and by
a downturn in consumer spending following the upcoming consumption tax hike.

3

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/20

In the steel industry, market conditions are expected to remain firm in Japan. But the prolonged U.S.-China trade
friction, slowing economic growth in China and other countries, and other events are increasing the risk of adownturn in the demand for steel. At the Yodogawa Steel Group, capturing orders is difficult for overseas
subsidiaries because of increasingly widespread trade protectionism. Furthermore, 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.
To achieve the goals of the Yodogawa Steel Group Medium-Term Management Plan 2019, all companies areworking on becoming more profitable. Companies are establishing positions in new markets and increasing salesof value-added products while taking full advantage of the speed and flexibility that are key strengths of the
Yodogawa Steel Group.
The forecast for consolidated performance in the first half of the fiscal year ending March 31, 2020 is based on
this outlook for the economy and steel market.
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 1Q of FY3/20

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Millions of yen)First quarter of FY3/20(as of Jun. 30, 2019)

FY3/19(as of Mar. 31, 2019)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
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 borrowings
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

536,84344,0183,494
15,5194,397
12,733
3,881(132)
120,755

37,161
41,767
2,773
16,347
4,258
13,042
4,099(132)
119,318

48,126
1,472

47,982
1,558

38,292817
39,10988,709209,465

37,606817
38,42387,964
207,282

17,858
327
1,736
971
6,274
27,16817,902
431
420
471
5,627
24,853

66

70

7,154
7,403
14,624
41,7937,145
7,591
14,806
39,66023,22020,385
104,961(13,061)
135,505

23,22020,384105,198(13,060)
135,743

12,213
1,639
1,378
(500)
14,730210
17,225
167,671
209,465

11,792
1,639
1,551
(459)
14,523208
17,146167,622
207,282

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/20(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 FY3/20(Apr. 1, 2019 to Jun. 30, 2019)

First three months of FY3/19(Apr. 1, 2018 to Jun. 30, 2018)
Net sales

41,706

38,761

Cost of sales

35,12732,714Gross profit

6,579

6,047

Selling, general and administrative expenses

4,292

4,317

Operating profit

2,286

1,730

Interest income

136

137

Dividend income

410

387

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

465

-

116

100

Non-operating income

139

114

1,269

741

Interest expenses

20

21

Foreign exchange losses
Cost for employees transferred temporarily tooverseas subsidiaries
Loss on valuation of derivatives

126

44

65

56

-

403

9

11

Total non-operating income
Non-operating expenses

Other
Total non-operating expenses

222

537

3,333

1,934

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

16

24

2

0

Loss on valuation of investment securities

12-

Loss on disaster-29

Total extraordinary losses

30

55

3,302

1,879

Income taxes-current

854

400

Income taxes-deferred

161

154

Total income taxes

1,016

555

Profit

2,286

1,323

16

(92)

2,270

1,416

Ordinary profit

Profit before income taxes

Profit (loss) attributable to non-controllinginterests
Profit attributable to owners of parent

6

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/20(Quarterly Consolidated Statement of Comprehensive Income)(For the Three-month Period)First three months of FY3/19(Apr. 1, 2018 to Jun. 30, 2018)
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

7(Millions of yen)First three months of FY3/20(Apr. 1, 2019 to Jun. 30, 2019)

2,286

1,323

(188)

(391)

(1,606)

165

166

62

(18)

(7)

(1,647)

(171)

639

1,152

1,273

1,209

(634)

(57)

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/20(3) Notes to Quarterly Consolidated Financial Statements
Going-concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Not applicable.
Changes in Accounting Policies
Beginning with the first quarter of the fiscal year ending March 31, 2020, Yodogawa Steel Works is applying
Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries, etc. for Consolidated
Financial Statements (Practical Issues Task Force (PITF) No. 18, September 14, 2018) and Practical Solution on
Unification of Accounting Policies Applied to Associates Accounted for Using the Equity Method (PITF No. 24,
September 14, 2018). When International Financial Reporting Standard No. 9 “Financial Instruments” is used forforeign subsidiaries, etc. and the option of including in other comprehensive income subsequent revisions to thefair values of equity instruments has been selected, then for the preparation of the con solidated financial
statements, the amounts of gains or losses and of asset impairment charges concerning these equity instruments
are included in the statement of income for the applicable fiscal year.
This change had no effect on the consolidated statement of income for the first quarter.

8

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/20

Segment and Other Information
Segment information
I. 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.

II. First three months of FY3/20 (Apr. 1, 2019 to Jun. 30, 2019)
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
35,957689
842
297
37,787974
38,761
38,761
Inter-segment
110
110
663
774
(774)
sales and transfers
Total
35,957689
842
408
37,897
1,638
39,535(774)
38,761
Segment profit
1,767
(65)
12
212
1,927
98
2,025
(294)
1,730
(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 (2 94) 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 attachme nts), 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