February 4, 2020

Summary of the Consolidated Financial Results for the Third Quarterof the Fiscal Year Ending March 31, 2020 (FY3/20)(Nine Months Ended December 31, 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:
February 10, 2020
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results: None
Holding of quarterly financial results meeting:
None
Stock code:
Representative:
Inquiries:(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Third Quarter (April 1, 2019 to December 31, 2019) of FY3/20(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales

Operating profit

Millions of yen

Nine months ended Dec. 31, 2019
Nine months ended Dec. 31, 2018

% Millions of yen

117,076
127,088

Note: Comprehensive income (millions of yen):

(7.9)
(2.0)

4,230
4,910

% Millions of yen(13.9)(44.2)

5,193
6,979

Nine months ended Dec. 31, 2019:
Nine months ended Dec. 31, 2018:% Millions of yen(25.6)(30.6)

3,342
4,199

%

(20.4)(30.6)

3,995 (-%)
(632) (-%)

Diluted net income
per share

Net income per share
Nine months ended Dec. 31, 2019
Nine months ended Dec. 31, 2018

Profit attributable toowners of parent

Ordinary profit

Yen

Yen

113.41141.60112.95141.00(2) Consolidated financial position
Total assets

Shareholders’ equity ratio

Net assets

Millions of yen

Millions of yen%

As of Dec. 31, 2019
As of Mar. 31, 2019

205,623
209,465

169,466
167,67174.3
71.7

Reference: Shareholders’ equity (millions of yen):

As of Dec. 31, 2019:

152,721

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

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
For further details, please refer to the press release dated today (February 4, 2020) about earnings forecast and dividend forecast(Japanese version only).

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

155,000

(7.4)

5,200

(11.6)

6,900(29.8)

4,400(29.7)

149.28

Note: Revisions to the most recently announced consolidated earnings forecast: Yes
For further details, please refer to “1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explana tion ofConsolidated Forecast and Other Forward-looking Statements” on page 3 and the press release dated today (February 4, 2020) about
earnings forecast and dividend forecast (Japanese version only).

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): None
(2) Application of special accounting methods for presenting quarterly consolidated financial statements: None
(3) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others: 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 7.

(4) Number of outstanding shares (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
As of Dec. 31, 2019:35,837,230 shares

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

As of Mar. 31, 2019:

6,361,610 shares

Nine months ended Dec. 31, 2018:

29,658,698 shares

2) Number of treasury shares at the end of the period
As of Dec. 31, 2019:

6,362,134 shares

3) Average number of shares outstanding during the period
Nine months ended Dec. 31, 2019:29,475,755 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 3Q 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

4(1) Quarterly Consolidated Balance Sheet

4(2) Quarterly Consolidated Statements of Income and Comprehensive Income

5

Quarterly Consolidated Statement of Income
For the Nine-month Period

5

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

6(3) Notes to Quarterly Consolidated Financial Statements

7

Going-concern Assumption

7

Significant Changes in Shareholders’ Equity

7

Changes in Accounting Policies

7

Segment and Other Information

8

1

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 3Q of FY3/20

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
During the first nine months of the fiscal year ending March 31, 2020, the Japanese economy showed signs ofslowdown due to reasons such as weakness in exports and production, and deterioration of corporate earnings.
In the global economy, consumer spending in the United States remains strong, while corporate activities such as
capital investment are showing signs of slowing down. Economic growth is also slowing in Asia and Europe, in
addition to China.
In the steel market in Japan, demand was generally weak due to factors such as a decrease in non-residential
housing starts, based on floor area, a decrease in automobile pr oduction and exports, a consumption tax hike, andthe effects of natural disasters.
In the overseas steel market, although the global crude steel production volume has decreased along with thedecrease in crude steel production in China, the level is still extremely high. The steel market has been sluggish,
mainly in Asia.
The Yodogawa Steel Group’s net sales in the first nine months decreased 10,011 million yen to 117,076 million
yen. Operating profit decreased 680 million yen to 4,230 million yen, ordinary profit decreased 1,786 million yen
to 5,193 million yen, and profit attributable to owners of parent decreased 856 million yen to 3,342 million yen.
In Japan, sales and earnings were lower than one year earlier due to a decrease in sales of steel sheets to specifichigh-demand customers.
Overseas, sales and earnings decreased at Taiwan subsidiary Sheng Yu Steel Co., 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 108,193 million yen and operating profit was 4,384 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, but the sales volume of these sheets was higher in the building materials category. Retail sales of steel
sheets for general distribution decreased in Japan while sales volumes of plated steel sheets and pre-painted steel
sheets increased.
At Taiwan subsidiary SYSCO, sales decreased mainly because of U.S. trade protectionism. In addition, sales werelower 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 2,133 million yen and operating loss was 220 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.
3) Grating BusinessNet sales totaled 2,623 million yen and operating profit was 68 million yen.
Sales and earnings increased because of steady progress with price revisions and the large volume of sales.

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Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 3Q of FY3/20

4) Real Estate BusinessNet sales totaled 903 million yen and operating profit was 639 million yen.
Sales and earnings increased because of a higher occupancy rate at tenant-occupied buildings.
5) Other Businesses
Net sales totaled 3,223 million yen and operating profit was 228 million yen.
Sales increased because of higher sales in the engineering business, but earnings decreased mainly due to a
decline in the volume of cargo handled in the warehouse cargo handling business.
(2) Explanation of Financial Position
AssetsCurrent assets decreased by 5,943 million yen from the end of the previous fiscal year to 114,811 million yen.
This was attributable mainly to a decrease of 5,259 million yen in cash and deposits, a decrease of 2,089 million
yen in notes and accounts receivable-trade, and an increase of 629 million yen in securities.
Non-current assets increased by 2,102 million yen from the end of the previous fiscal year to 90,811 million yen.
This was mainly attributable to an increase of 3,540 million yen in investment securities and a decrease of 1,488
million yen in property, plant and equipment.
Total assets decreased by 3,841 million yen from the end of the previous fiscal year to 205,623 million yen.
Liabilities
Current liabilities decreased by 7,004 million yen from the end of the previous fiscal year to 20,164 million yen.
This was attributable mainly to a decrease of 3,796 million yen in notes and accounts payable-trade.
Non-current liabilities increased by 1,368 million yen from the end of the previous fiscal year to 15,993 million
yen. This was attributable mainly to an increase of 1,456 million yen in deferred tax liabilities included in othernon-current liabilities. Total liabilities decreased by 5,636 million yen from the end of the previous fiscal year to
36,157 million yen.
Net assets
Net assets increased by 1,794 million yen from the end of the previous fiscal year to 169,466 million yen. This
was attributable mainly to an increase of 1,282 million yen in retained earnings, an increase of 2,051 million yen
in valuation difference on available-for-sale securities, a decrease of 939 million yen in foreign currencytranslation adjustment, and a decrease of 708 million yen in non-controlling interests.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
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.
The forecast for consolidated performance in the current fiscal year is based on this outlook for the economy andsteel market.

3

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 3Q of FY3/20

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Millions of yen)
Third quarter of FY3/20(as of Dec. 31, 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

436,84344,0183,494
15,5194,397
12,733
3,881(132)
120,755

31,584
41,928
4,123
15,945
4,368
12,203
4,788(132)
114,811

48,126
1,472

46,6381,601

38,292817
39,10988,709209,465

41,832738
42,57190,811
205,623

17,858
327
1,736
971
6,274
27,16814,061
520
49
619
4,912
20,164

66

76

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

7,076
8,840
15,99336,15723,22020,385
104,961(13,061)
135,505

23,22020,384106,243(13,062)
136,786

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

14,264
1,636
439
(405)
15,934228
16,516
169,466
205,623

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 3Q of FY3/20(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statement of Income)(For the Nine-month Period)First nine months of FY3/19(Apr. 1, 2018 to Dec. 31, 2018)(Millions of yen)First nine months of FY3/20(Apr. 1, 2019 to Dec. 31, 2019)

Net sales

127,088

117,076

Cost of sales

109,163

99,983Gross profit

17,92417,092

Selling, general and administrative expenses

13,013

12,862

Operating profit

4,910

4,230

Interest income

428

379

Dividend income

815

747

Foreign exchange gains

123

22

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

466

0

270

348

243

226

2,347

1,723

Non-operating income

Total non-operating income
Non-operating expenses
Interest expenses
Cost for employees transferred temporarily tooverseas subsidiaries
Loss on valuation of derivatives

60

64

160

133

-

513

Other

57

48

Total non-operating expenses

278

760

6,979

5,193

Gain on sales of non-current assets-

0

Insurance claim income

47-

Total extraordinary income

47

0

31

86

2

0

Ordinary profit
Extraordinary income

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

585

13

Loss on valuation of investment securities

42

273

Other

0

-

661

375

Profit before income taxes

Total extraordinary losses

6,365

4,818

Income taxes-current

2,011

1,198

Income taxes-deferred

(119)

389

Total income taxes

1,892

1,588

Profit

4,473

3,230

273

(112)

4,199

3,342

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

5

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 3Q of FY3/20(Quarterly Consolidated Statement of Comprehensive Income)(For the Nine-month Period)First nine months of FY3/19(Apr. 1, 2018 to Dec. 31, 2018)(Millions of yen)First nine months of FY3/20(Apr. 1, 2019 to Dec. 31, 2019)

4,473

3,230

(4,135)2,132(1,156)(1,487)

252

133

(65)

(13)

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

6(5,105)

765

(632)

3,995

(416)

4,550

(215)

(554)

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 3Q 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, 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 i ncome 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 nine months.

7

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 3Q of FY3/20

Segment and Other Information
Segment information
I. First nine months of FY3/19 (Apr. 1, 2018 to Dec. 31, 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
117,9172,544
2,583
884 123,930
3,158 127,088
127,088
Inter-segment
331
331
1,841
2,172
(2,172)
sales and transfers
Total
117,9172,544
2,583
1,216 124,261
4,999 129,261(2,172)
127,088
Segment profit
4,922
(27)
47
608
5,550
273
5,824
(913)
4,910
(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 (914) million yen and an elimination forinter-segment transactions of 1 million yen.
3. Segment profit (loss) is adjusted to be consistent with the operating profit on the quarterly consolidated statementof income.

II. First nine months of FY3/20 (Apr. 1, 2019 to Dec. 31, 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
108,1932,133
2,623
903 113,853
3,223 117,076
117,076
Inter-segment
331
331
1,820
2,151
(2,151)sales and transfers
Total
108,193
2,133
2,623
1,234 114,185
5,043 119,228(2,151)
117,076
Segment profit
4,384
(220)
68
639
4,871
228
5,099
(869)
4,230
(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 (sal e of solar power) and other businesses.
2. The adjustment to segment profit (loss) includes unallocated expenses of ( 870) 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.

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