November 1, 2019

Summary of the Consolidated Financial Results for the Second Quarterof the Fiscal Year Ending March 31, 2020 (FY3/20)(Six Months Ended September 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:
November 8, 2019
Scheduled date of payment of dividend:
December 2, 2019
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, 2019 to September 30, 2019) of FY3/20(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales

Operating profit

Millions of yen

Six months ended Sep. 30, 2019
Six months ended Sep. 30, 2018

% Millions of yen

78,261
83,678

Note: Comprehensive income (millions of yen):

(6.5)
(1.4)

2,906
3,052

% Millions of yen(4.8)(54.8)

3,312
4,555

Six months ended Sep. 30, 2019:
Six months ended Sep. 30, 2018:% Millions of yen(27.3)(39.5)

1,998
2,838

%

(29.6)(36.2)

1,456 (down 21.4%)
1,851 (down 77.5%)

Diluted net income
per share

Net income per share
Six months ended Sep. 30, 2019
Six months ended Sep. 30, 2018

Profit attributable toowners of parent

Ordinary profit

Yen

Yen

67.80
95.71

67.53
95.30

(2) Consolidated financial position
Total assets

Shareholders’ equity ratio

Net assets

Millions of yen

Millions of yen%

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

204,579
209,465

167,812167,67173.8
71.7

Reference: Shareholders’ equity (millions of yen):

As of Sep. 30, 2019:

151,056

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
30.00

-

40.00

70.00

-

-

-

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: Yes
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 sales
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

-

-

-

-

-

-

-

-

-

Note: Revisions to the most recently announced consolidated earnings forecast: None
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 Quarterly
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 Sep. 30, 2019:35,837,230 shares

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

As of Mar. 31, 2019:

6,361,610 shares

Six months ended Sep. 30, 2018:

29,655,892 shares

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

6,361,450 shares

3) Average number of shares outstanding during the period
Six months ended Sep. 30, 2019:29,475,946 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, p lease 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 2Q 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 Six-month Period

6

Quarterly Consolidated Statement of Comprehensive Income
For the Six-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 2Q of FY3/20

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, 2020, although exports were sluggish, the Japanese
economy generally continued to recover slowly with the support of consumer spending and capital expenditures.
The U.S. economy continued to recover because of growing consumer spending and other reasons. However,
economy is negative in Asia and Europe because of slowing economic growth in China and geopolitical risk
involving U.S.-China trade friction, tension concerning Iran and other events.
The steel market in Japan was generally strong during the fiscal year’s first half, although there was weakness insome categories of demand as residential and other building construction s tarts declined and sales of home
appliances decreased.
In the global steel market, steelmakers in China continued to raise output despite U.S. restrictions on steel
imports and slowing economic growth in China. As a result, prices of steel products have be en weak, mainly in
Asia.
The Yodogawa Steel Group’s net sales in the first half decreased 5,416 million yen to 78,261 million yen.
Operating profit decreased 145 million yen to 2,906 million yen, ordinary profit decreased 1,242 million yen to
3,312 million yen, and profit attributable to owners of parent decreased 839 million yen to 1,998 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 exterior products. Earnings in Japan declined mainly because of the higher cost ofmajor raw materials and a smaller contribution to earnings from inventory valuations than one year earlier.
Overseas, sales and earnings decreased at Taiwan subsidiary Sheng Yu Steel C o., Ltd. (SYSCO) as the businessclimate remained challenging. Sales were down but losses were smaller at subsidiaries Yodogawa Shengyu(Hefei) High-Tech Steel Co., Ltd. (YSS) in China and PCM Processing (Thailand) Ltd. (PPT) in Thailand.
Results by business segment are as follows.
1) Steel Sheet-related BusinessNet sales totaled 72,484 million yen and operating profit was 3,031 million 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. Sales of pre-painted sheets were slow in the home appliancecategory and export sector, where market conditions are sluggish, but the sales volume of these she ets was higher
in the building materials category. Sales of steel sheets for general distribution were about the same as one year
earlier as sales volumes of plated steel sheets and pre-painted steel sheets increased.
At Taiwan subsidiary SYSCO, the sales decreased mainly because of U.S. trade protectionism. In addition, sales
were lower at YSS in China and PPT in Thailand, but the profitability of these two companies improved.
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 a result of price revisions. Construction sales were higher because of an increase incompletions of large projects.
2) Roll BusinessNet sales totaled 1,435 million yen and operating loss was 160 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 2Q of FY3/20

3) Grating BusinessNet sales totaled 1,719 million yen and operating profit was 31 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 602 million yen and operating profit was 424 million yen.
Sales and earnings increased because of a higher occupancy rate at tenant-occupied buildings.
5) Other Businesses
Net sales totaled 2,020 million yen and operating profit was 172 million yen.
Sales decreased because of lower sales in the engineering business, but earnings increased due to an improvementin the profitability of materials sales operations.
(2) Explanation of Financial Position
AssetsCurrent assets decreased by 5,093 million yen from the end of the previous fiscal year to 115,662 million yen.
This was attributable mainly to a decrease of 6,826 million yen in cash and deposits, a decrease of 1,605 million
yen in notes and accounts receivable-trade, and an increase of 2,985 million yen in securities.
Non-current assets increased by 207 million yen from the end of the previous fiscal year to 88,917 million yen.
This was mainly attributable to an increase of 1,161 million yen in investment securities and a decrease of 1,091
million yen in property, plant and equipment.
Total assets decreased by 4,885 million yen from the end of the previous fiscal year to 204,579 million yen.
Liabilities
Current liabilities decreased by 5,481 million yen from the end of the previous fiscal year to 21,687 million yen.
This was attributable mainly to a decrease of 3,771 million yen in notes and accounts payable-trade.
Non-current liabilities increased by 455 million yen from the end of the previous fiscal year to 15,080 million yen.
This was attributable mainly to an increase of 516 million yen in deferred tax liabilities included in othernon-current liabilities.
Total liabilities decreased by 5,026 million yen from the end of the previous fiscal year to 36,767 million yen.
Net assets
Net assets increased by 140 million yen from the end of the previous fiscal year to 167,812 million yen. This was
attributable mainly to an increase of 819 million yen in retained earnings, an increase of 638 million yen invaluation difference on available-for-sale securities, a decrease of 709 million yen in foreign currency translation
adjustment, and a decrease of 697 million yen in non-controlling interests.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
There is an increasing risk of slower global economic growth despite the continuation of the U.S. economic
recovery. The main reasons are the outlook for the gradual decline in China’s growth rate to continue, concerns
about U.S.-China trade friction and other trade problems, and the rising cost of crude oil.
In Japan, the economy is expected to continue recovering at a moderate pace mainly with the support of
improvements in the labor market and personal income. However, the outlook is becoming increasingly uncertain.
One reason is the rising level of risk associated with a downturn in consumer spending following the October
2019 consumption tax hike, slowing economic growth in China and the rising cost of crude oil. Damage caused

3

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 2Q of FY3/20

by a recent severe typhoon is also making the economic outlook unclear.
In the steel industry, the risk of a downturn is growing as the outlook for steel demand in Japan and overseas
becomes increasingly unclear. 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.
All companies are working on becoming more profitable. Companies are establishing positions in new markets
and increasing sales of value-added products while taking full advantage of the speed and flexibility that are key
strengths of the Yodogawa Steel Group.
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 2Q of FY3/20

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Millions of yen)
Second quarter of FY3/20(as of Sep. 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
Deferred gains or losses on hedges
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

30,01742,412
6,480
16,156
3,994
12,081
4,652(132)
115,662

48,126
1,472

47,035
1,613

38,292817
39,10988,709209,465

39,453813
40,267
88,917
204,579

17,858
327
1,736
971
6,274
27,16814,087
546
1,034
1,152
4,865
21,687

66

73

7,154
7,403
14,624
41,793

7,085
7,921
15,08036,76723,22020,385
104,961(13,061)
135,505

23,22020,384
105,780(13,061)
136,325

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

12,851
(0)
1,639
669
(428)
14,731
228
16,527
167,812204,579

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 2Q of FY3/20(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statement of Income)(For the Six-month Period)First six months of FY3/19(Apr. 1, 2018 to Sep. 30, 2018)
83,678(Millions of yen)First six months of FY3/20(Apr. 1, 2019 to Sep. 30, 2019)78,261

Cost of sales

71,917

66,742Gross profit

11,761

11,519Selling, general and administrative expenses

8,709

8,612

Operating profit

3,052

2,906

Interest income

260

260

Dividend income

472

462

Net sales

Non-operating income

Foreign exchange gains

112-

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

466

0

177

257

191

166

1,680

1,146

Interest expenses

39

44

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

-

39

101

83

-

546

Total non-operating income
Non-operating expenses

Other

35

26

Total non-operating expenses

177

740

4,555

3,312

Gain on sales of non-current assets-

0

Total extraordinary income

-

0

22

56

Ordinary profit
Extraordinary income

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

12

356

Impairment loss

20

Loss on disaster

231

20

269

434

Profit before income taxes

Total extraordinary losses

4,286

2,878

Income taxes-current

1,527

973

Income taxes-deferred

(316)

(14)

Total income taxes

1,210

958

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

3,075

1,920

236

(78)

2,838

1,998

6

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 2Q of FY3/20(Quarterly Consolidated Statement of Comprehensive Income)(For the Six-month Period)

ProfitFirst six months of FY3/19(Apr. 1, 2018 to Sep. 30, 2018)
3,075(Millions of yen)First six months of FY3/20(Apr. 1, 2019 to Sep. 30, 2019)
1,920

600

734

-

(0)

(2,027)(1,270)

221

105

(17)

(32)

Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
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(1,223)

(463)

1,851

1,456

2,385

1,999

(534)

(543)

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 2Q 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 Applie d to Foreign Subsidiaries, etc. for Consolidated
Financial Statements (Practical Issues Task Force (PITF) No. 18, June 28, 2019) 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 consolidated 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 half.

8Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 2Q of FY3/20

Segment and Other Information
Segment information
I. First six months of FY3/19 (Apr. 1, 2018 to Sep. 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
Inter-segment
sales and transfers
Total

77,533

1,860

1,640

584

81,6182,060

83,678-83,678

-

-

-

221

221

1,188

1,409

(1,409)-77,533

1,860

1,640

805

81,8393,248

85,088(1,409)83,678Segment profit
3,036
27
1
405
3,471
171
3,642
(590)
3,052
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) a nd other businesses.
2. The adjustment to segment profit includes unallocated expenses of (591) million yen and an elimination forinter-segment transactions of 1 million yen.
3. Segment profit is adjusted to be consistent with the operating profit on th e quarterly consolidated statement ofincome.

II. First six months of FY3/20 (Apr. 1, 2019 to Sep. 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
72,484
1,435
1,719
602
76,241
2,020
78,261
78,261
Inter-segment
221
221
1,259
1,480
(1,480)sales and transfers
Total
72,484
1,435
1,719
823
76,462
3,279
79,742(1,480)78,261
Segment profit
3,031
(160)
31
424
3,327
172
3,500
(593)
2,906
(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 expen ses of (593) 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