November 4, 2022

Summary of the Consolidated Financial Results for the Second Quarterof the Fiscal Year Ending March 31, 2023 (FY3/23)(Six Months Ended September 30, 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:
November 10, 2022
Scheduled date of payment of dividend:
December 1, 2022
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results meeting:Yes (for analysts and institutional investors)
Stock code:
Representative:
Inquiries:(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Second Quarter (April 1, 2022 to September 30, 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% Millions of yen

118,525
26.3
8,235
45.5
Six months ended Sep. 30, 2022
Six months ended Sep. 30, 2021
93,873
39.1
5,658
85.3
Note: Comprehensive income (millions of yen): Six months ended Sep. 30, 2022:
Six months ended Sep. 30, 2021:
Diluted net income
Net income per shareper share
Six months ended Sep. 30, 2022
Six months ended Sep. 30, 2021

Profit attributable toowners of parent

Ordinary profit

Yen

Yen

203.08142.74202.42
142.14% Millions of yen

10,960
53.6
7,136
69.5
9,993 (up 50.7%)
6,633 (down 22.5%)

%

5,858
4,110

42.5
41.1

(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Shareholders’ equity ratio

Millions of yen%

As of Sep. 30, 2022
251,857
198,141
244,671
191,937
As of Mar. 31, 2022
Reference: Shareholders’ equity (millions of yen): As of Sep. 30, 2022:
174,772

69.4
69.6
As of Mar. 31, 2022: 170,296

2. Dividends
1Q-endDividend per share
3Q-end2Q-endYen

Year-end

Total

Yen

Yen

Yen

Yen

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: None

-

67.00

102.00---

There is currently no dividend forecast for the fiscal year ending March 31, 2023.

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

Yen

Full year
Note: Revisions to the most recently announced consolidated earnings forecast: None%

Millions of yen

-

-

-

No consolidated forecast for the fiscal year ending March 31, 2023 is shown because of the difficulty of determining a reliab leforecast. 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 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: 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 Sep. 30, 2022:

34,837,230 shares

As of Mar. 31, 2022:

34,837,230 shares

As of Mar. 31, 2022:

6,008,176 shares

Six months ended Sep. 30, 2021:

28,798,281 shares

2) Number of treasury shares at the end of the period
As of Sep. 30, 2022:

5,976,132 shares

3) Average number of shares outstanding during the period
Six months ended Sep. 30, 2022:

28,846,640 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 reason s.
For a discussion of the assumptions for forecasts, precautions concerning usage and other information, please refer to “1.
Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated Forecast and Other
Forward-looking Statements” on page 3.

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

2(2) Explanation of Financial Position

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

3

2. Quarterly Consolidated Financial Statements and Notes

5(1) Quarterly Consolidated Balance Sheet

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

7

Quarterly Consolidated Statement of Income
For the Six-month Period

7

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

8
9

Going-concern Assumption

9

Significant Changes in Shareholders’ Equity

9

Notes to Quarterly Consolidated Balance Sheet

9

Segment and Other Information

10

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
During the first half of the fiscal year ending March 31, 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 inflation, which is raising thecost of energy and other items, and rising interest rates.
In the Japanese steel industry, orders and production have started to decline. Although non -residential
construction starts, machinery production and some other sectors are performing well, demand is held down by
declining automobile production due to the semiconductor shortage and by other reasons.
In overseas steel markets, the business climate is weakening as economic growth rates worldwide decline.
The Yodogawa Steel Group’s net sales in the first half increased 24,652 million yen to 118,525 million yen.
Operating profit increased 2,576 million yen to 8,235 million yen, ordinary profit increased 3,823 million yen to
10,960 million yen, and profit attributable to owners of parent increased 1,747 million yen to 5,858 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 mainly because of higher sales at Taiwan subsidiary Sheng Yu Steel Co., Ltd. (SYSCO).
However, earnings were down at Chinese subsidiary Yodogawa Shengyu (Hefei) High -Tech Steel Co., Ltd. (YSS)
mainly because of the lack of growth in markets for this company’s products.
Business segment performance was as follows.
1) Steel Sheet-related BusinessNet sales totaled 114,042 million yen and operating profit was 8,525 million yen. Sales and earnings increased.
Steel Sheets
In Japan, there were sales volume declines for specific high -demand customers primarily because of the lack ofgrowth in demand in the building construction sector. However, sales and earnings increased mainly due to higher
sales in the general distribution category and revisions of selling prices of all types of steel sheets.
Overseas, sales and earnings increased at SYSCO in Taiwan. Although the total sales volume declined, the sales
volume of exported pre-painted steel sheets increased, prices of products were revised, and foreign exchange ratechanges had a positive effect. At YSS, a subsidiary in China, sales and earnings were dow n because of thenegative impact of lockdowns of Shanghai and other major cities due to the zero -COVID policy. Sales andearnings of PCM Processing (Thailand) Ltd. (PPT), our Thai subsidiary, increased because of the steady sales ofhigh value-added products and revisions of selling prices.
Building Material & Exterior Products
Sales of exterior products increased mainly because of strong sales of storage sheds , garages and large storage
sheds, and sales of exterior building materials were higher due to revisions of YODO Roof prices and otherreasons. Construction sales decreased from one year earlier when sales included the completion of a large project.
2) Roll BusinessNet sales totaled 1,323 million yen and operating loss was 210 million yen.
Sales increased because export volume of rolls used in the steel industry increased but there was an operating loss
due to higher expenses.

3) Grating BusinessNet sales totaled 1,680 million yen and operating profit was 27 million yen.
Sales were almost the same as one year earlier, but earnings decreased as the higher cost.
4) Real Estate BusinessNet sales totaled 617 million yen and operating profit was 406 million yen.
Sales were almost the same as one year earlier, but earnings decreased mainly because of a lower occupancy rate
at tenant-occupied buildings and an increase in depreciation.
5) Other Businesses
Net sales totaled 861 million yen and operating profit was 198 million yen.
Sales increased due to higher sales in the materials sales business and the warehousing and transportation
businesses.
(2) Explanation of Financial Position
AssetsCurrent assets increased by 9,989 million yen from the end of the previous fiscal year to 154,512 million yen.
This was attributable mainly to increases of 5,531 million yen in notes and accounts receivable-trade, andcontract assets, and 5,606 million yen in raw materials and supplies.
Non-current assets decreased by 2,802 million yen from the end of the previous fiscal year to 97,344 million yen.
This was mainly attributable to an increase of 1,561 million yen in property, plant and equipment, and a decreaseof 4,694 million yen in investment securities.
Total assets increased by 7,186 million yen from the end of the previous fiscal year to 251,857 million yen.
Liabilities
Current liabilities increased by 2,593 million yen from the end of the previous fiscal year to 40,151 million yen.
This was attributable mainly to increases of 926 million yen in notes and accounts payable-trade, and 1,775
million yen in accrued expenses included in other current liabilities.
Non-current liabilities decreased by 1,610 million yen from the end of the previous fiscal year to 13,564 million
yen. This was attributable mainly to a decrease of 1,432 million yen in deferred tax liabilities included in othernon-current liabilities.
Total liabilities increased by 982 million yen from the end of the previous fiscal year to 53,716 million yen.
Net assets
Net assets increased by 6,203 million yen from the end of the previous fiscal year to 198,141 million yen. This
was attributable mainly to increases of 4,010 million yen in retained earnings and 3,311 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. The prolonged conflict in Ukraine isdisrupting supply chains and raising the cost of resources and energy worldwide. Furthermore, there is risk of an
economic downturn because of monetary tightening in the United States and Europe. In China, the economic
growth rate is declining.
In the steel markets of Japan and other countries, there is no growth outside Japan and the steel market is
beginning to show signs of weakness in Japan too. Due to this situation, the steel market, including the balance
between supply and demand, is likely to remain unstable for the time being.
The Yodogawa Steel Group as well is likely to continue to operate in a challenging business climate due to theunpredictability and instability of demand and 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.
There is no forecast for the fiscal year ending in March 202 3 at this time because of the difficulty of determining
a reliable forecast due to the increasing uncertainty about the business climate in Japan and other countries. An
announcement will be made promptly once it becomes possible to determine a reliable forecast .

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Millions of yen)
Second quarter of FY3/23(as of Sep. 30, 2022)

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

31,872

32,050Notes and accounts receivable-trade, and contract assets

53,671

59,203

Electronically recorded monetary claims-operating

3,412

4,848

Securities

2,120

2,609

Merchandise and finished goods

22,027

23,034Work in process

6,801

6,448

Raw materials and supplies

17,49923,105

Other

7,229

3,322

Allowance for doubtful accounts

(110)

(111)

144,523

154,512

Property, plant and equipment

56,45958,020Intangible assets

1,966

2,051

Investment securities

40,67835,983Retirement benefit asset

441

463

Other

601

825

Total current assets
Non-current assets

Investments and other assets

Total investments and other assets

41,721

37,272

100,147

97,344

244,671

251,857

Notes and accounts payable-trade

20,676

21,602

Electronically recorded obligations-operating

2,329

2,675

Short-term borrowings

1,320

1,424

Income taxes payable

3,590

3,590

Provision for bonuses

1,658

1,564

671

882

Total non-current assets
Total assets
Liabilities
Current liabilities

Provision for product warranties
Other

7,309

8,412

Total current liabilities

37,55740,151

39

26

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

6,285

6,152

Other

8,851

7,386

Total non-current liabilities

15,175

13,56452,73353,716

Total liabilities

FY3/22(as of Mar. 31, 2022)(Millions of yen)
Second quarter of FY3/23(as of Sep. 30, 2022)

Net assets
Shareholders’ equity
Share capital

23,22023,220Capital surplus

18,272

18,270Retained earnings

118,475

122,485

Treasury shares(11,992)(11,918)

Total shareholders’ equity

147,977

152,058

16,174

13,332(0)-

Revaluation reserve for land

1,609

1,526

Foreign currency translation adjustment

4,433

7,745

Remeasurements of defined benefit plans

101

109

22,31922,713

187

163

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

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

21,45423,205

Total net assets

191,937

198,141

244,671

251,857

Total liabilities and net assets

(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statement of Income)(For the Six-month Period)First six months of FY3/22(Apr. 1, 2021 to Sep. 30, 2021)(Millions of yen)First six months of FY3/23(Apr. 1, 2022 to Sep. 30, 2022)

Net sales

93,873

118,525

Cost of sales

78,904

99,662Gross profit

14,96818,863

Selling, general and administrative expenses

9,309

10,628Operating profit

5,658

8,235

Interest income

139

181

Dividend income

461

730

Non-operating income

Foreign exchange gains

19

431

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

275

1,245

219

113

509

181

1,625

2,884

Interest expenses
Cost for employees transferred temporarily tooverseas subsidiaries
Other

32

54

85

78

30

25

Total non-operating expenses

147

159

7,136

10,960Total non-operating income
Non-operating expenses

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

19

-

Other

-

0

Total extraordinary income

19

0

81

115

1

-

Impairment losses

1

598

Total extraordinary losses

84

714

Profit before income taxes

7,071

10,246

Income taxes-current

1,761

3,349

Income taxes-deferred

(21)

(437)

Total income taxes

1,740

2,911

Profit

5,331

7,334

Profit attributable to non-controlling interests

1,220

1,476

Profit attributable to owners of parent

4,110

5,858

Extraordinary losses
Loss on sale and retirement of non-current
assetsLoss on valuation of investment securities

(Quarterly Consolidated Statement of Comprehensive Income)(For the Six-month Period)First six months of FY3/22(Apr. 1, 2021 to Sep. 30, 2021)(Millions of yen)First six months of FY3/23(Apr. 1, 2022 to Sep. 30, 2022)

5,331

7,334

(1,729)(2,851)(0)0Foreign currency translation adjustment
Remeasurements of defined benefit plans, netof taxShare of other comprehensive income ofentities accounted for using equity method

2,978

5,518

34

7

18

(16)

Total other comprehensive income

1,302

2,659

6,633

9,993

4,290

6,336

2,343

3,657

ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to ownersof parent
Comprehensive income attributable tonon-controlling interests

(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 wher e 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 six months of FY3/22 (Apr. 1, 2021 to Sep. 30, 2021)
1. 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
89,809
1,168
1,660
625
93,264608
93,87393,873
Inter-segment
210
210
1,300
1,510
(1,510)sales and transfers
Total
89,809
1,168
1,660
835
93,474
1,909
95,384(1,510)93,873
Segment profit
5,530
40
52
419
6,042
195
6,237
(578)
5,658
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 (575) million yen and an elimination forinter-segment transactions of (3) million yen.
3. Segment profit is adjusted with the operating profit on the quarterly consolidated statement of income.

II. First six months of FY3/23 (Apr. 1, 2022 to Sep. 30, 2022)
1. Information related to net sales and profit/loss for each reportable segment
Reportable segments
Steel
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
114,0421,323
1,680
617 117,664
861 118,525
118,525
Inter-segment
213
213
1,446
1,660
(1,660)sales and transfers
Total
114,0421,323
1,680
831 117,878
2,308 120,186(1,660)118,525
Segment profit
8,525
(210)
27
406
8,748
198
8,946
(711)
8,235
(loss)
Notes: 1. Others represent businesses which are not included in any of the reportable segments and mainly consist oftransportation, warehouse, golf course, machinery plant, electric power (sale of solar power) and other businesses.
2. The adjustment to segment profit (loss) includes unallocated expenses of (709) million yen and an elimination forinter-segment transactions of (1) million yen.
3. Segment profit (loss) is adjusted with the operating profit on the quarterly consolidated statement of income.

2. Information related to impairment losses on non-current assets, or goodwill, etc. for each reportable segment
Material impairment losses related to non-current assets
In the Others (golf course business) segment, impairment losses on non-current assets were recorded.
The amount of the impairment losses was 598 million yen in the first six months of FY3/23.
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.