August 2, 2017

Summary of the Consolidated Financial Results for the First Quarterof the Fiscal Year Ending March 31, 2018 (FY3/18)(Three Months Ended June 30, 2017)[Japanese GAAP]
Company name:

Yodogawa Steel Works, Ltd.
Stock exchange listed: Tokyo, 1st Section
Stock code:
5451
URL: http://www.yodoko.co.jp/
Representative:
Takaaki Kawamoto, 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, 2017
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, 2017 to June 30, 2017) of FY3/18(1) Consolidated results of operations
Net sales(Percentages represent year-on-year changes)
Profit attributable toOrdinary profit
owners of parent

Operating profit

Millions of yen% Millions of yen% Millions of yen

Three months ended Jun. 30, 2017
42,955
19.3
4,131
23.8
Three months ended Jun. 30, 2016
36,003 (14.6)
3,337 135.0
Note: Comprehensive income (millions of yen): Three months ended Jun. 30, 2017:
Three months ended Jun. 30, 2016:

2,715
1,762

%

54.1
209.3

Diluted net income
per share

Net income per share
Three months ended Jun. 30, 2017
Three months ended Jun. 30, 2016

% Millions of yen

4,621
35.9
3,400
71.6
4,942 (-%)
(252) (-%)

Yen

Yen

91.29
58.19

90.92
57.98

(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Shareholders’ equity ratio

Millions of yen

As of Jun. 30, 2017
211,325
As of Mar. 31, 2017
209,977
Reference: Shareholders’ equity (millions of yen): As of Jun. 30, 2017:%

164,614161,374
145,607

68.9
68.2
As of Mar. 31, 2017:

143,241

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

Year-end

Total

Yen

Yen

Yen

Yen

Fiscal year ended Mar. 31, 2017
30.00
Fiscal year ending Mar. 31, 2018
Fiscal year ending Mar. 31, 2018
35.00
(Forecast)
Note: Revisions to the most recently announced dividend forecast: Yes

-

40.00

70.00

-

35.00

70.00

3. Consolidated Forecasts for FY3/18 (April 1, 2017 to March 31, 2018)
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%

Millions of yen%

Yen

First half
85,000
15.9
6,500
3.9
7,000
14.9
3,900
20.7
131.29Full year
173,000
12.2
9,300 (29.4)
10,300 (25.2)
5,900 (12.4)
198.79Note: 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) Explanationof Consolidated Forecasts and Other Forward-looking Statements” on page 4.

* 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 Jun. 30, 2017:35,837,230 shares

As of Mar. 31, 2017:35,837,230 shares

As of Mar. 31, 2017:

6,028,845 shares

Three months ended Jun. 30, 2016:

30,284,110 shares

2) Number of treasury shares at the end of the period
As of Jun. 30, 2017:

6,187,251 shares

3) Average number of shares outstanding during the period
Three months ended Jun. 30, 2017:

29,748,163 shares* The current quarterly financial report is not subject to quarterly review procedures.
* 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 Company 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 Forecasts and Other Forward -looking
Statements” on page 4.

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/18

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 FY3/18

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, 2018, the gradual recovery of the Japanese economy
continued. An improvement in corporate earnings as recovering overseas economies raise Japan’s exports and arebound in consumer spending backed by an improvement in job market are two major reasons for this recovery.
In the United States, the economy is staging a steady recovery as the nu mber of jobs increases and companies
report higher earnings. Due to this recovery, the Federal Open Market Committee approved another interest rate
hike in June. In Europe, consumer spending and capital expenditures both indicate that the economy is recove ring.
In China, the economy continues to come back with the support of government policies.
In the 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 key industries.
The global steel market began to weaken in the spring of 2017, starting in China. However, prices of steel
products stopped falling in part because of restrictions imposed on low-quality steel made from ferrous scrap,with the Chinese government taking the lead. Since then, prices have been moving up steadily.
The Yodogawa Steel Group’s net sales in the first quarter increased 6,952 million yen to 42,955 million yen.
Operating profit increased 794 million yen to 4,131 million yen, ordinary profit increased 1,221 million yen to
4,621 million yen, and profit attributable to owners of parent increased 953 million yen to 2,715 million yen.
Sales activities that prioritized profitability, cost cutting measures and revisions to prices of steel sheet products
were mainly responsible for the growth in sales and earnings.
Results by business segment are as follows.
1) Steel Sheet-related BusinessNet sales totaled 40,009 million yen and operating profit was 4,018 million yen.
Steel Sheet Segment
The volume of steel sold in Japan to specific high-demand customers was the same as one year earlier because ofsales activities that placed emphasis on profitability. Monetary sales in this category increased due to priceincreases. Retail sales of steel for general distribution increased as steel demand in non -residential sectors
increased and price revisions were mostly accepted by customers.
A subsidiary in Taiwan, Sheng Yu Steel Co., Ltd. (SYSCO) posted higher sales despite a decline in the overall
volume of exports. There was a recovery in the volume of sales to North America and sales within Taiwan werehigher. In China, earnings improved at Yodogawa-Shengyu (Hefei) High-Tech Steel Co., Ltd. (YSS) as there wasprogress regarding sales. In Thailand, PCM Processing (Thailand) Ltd. (PPT) posted growth in sales volume butmonetary sales decreased because a change in the product mix.
Building Material & Exterior Products Segment
Sales of building materials were lower mainly because of the decision to be more selective regarding orders forroofing products. Sales of exterior products increased. The main reasons were higher sales of Erumo mediumand large-scale storage sheds and of products for garages and large structures such as warehou ses. Construction
sales increased due to progress at large projects for the installation of YODO fire -proof panel Grand Wall.
As a result, total sales in the steel sheet-related business were higher than one year earlier.
2) Roll Business
Sales decreased mainly because of a decline in the volume of iron and steel industry roll sales. As a result, net
sales totaled 976 million yen and operating profit was 97 million yen.

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Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/18

3) Grating Business
There were sales activities to capture more private-sector orders, but sales in this business were lower because of
decline in public-sector sales. As a result, net sales totaled 786 million yen and operating profit was 19 million
yen.
4) Real Estate Business
Sales increased because of the acquisition of a tenant-occupied building and a higher occupancy rate at theproperties in this business. As a result, net sales totaled 250 million yen and operating profit was 165 million yen.
5) Other Businesses
Higher sales in transport and warehouse operations raised sales in other businesses. As a result, net sales totaled
933 million yen and operating profit was 111 million yen.
(2) Explanation of Financial Position
AssetsCurrent assets decreased by 151 million yen from the end of the previous fiscal year to 114,037 million yen. This
was attributable mainly to a decrease of 4,321 million yen in cash and deposits and increases of 2,210 million yen
in merchandises and finished goods and 2,366 million yen in raw materials and supplies.
Non-current assets increased by 1,498 million yen from the end of the previous fiscal year to 97,287 million yen.
This was mainly attributable to an increase of 2,057 million yen in investment securities and a decrease of 476
million yen in property, plant and equipment.
Total assets increased by 1,347 million yen from the end of the previous fiscal year to 211,325 million yen.
Liabilities
Current liabilities decreased by 991 million yen from the end of the previous fiscal year to 29,456 million yen.
This was attributable mainly to an increase of 1,623 million yen in notes and accounts payable-trade anddecreases of 669 million yen in short-term loans payable, 921 million yen in income taxes payable and 505
million yen in provision for bonuses.
Non-current liabilities decreased by 900 million yen from the end of the previous fiscal year to 17,254 million
yen. This was attributable mainly to a decrease of 580 million yen in net defined benefit liability.
Total liabilities decreased by 1,892 million yen from the end of the previous fiscal year to 46,710 million yen.
Net assets
Net assets increased by 3,240 million yen from the end of the previous fiscal year to 164,614 million yen. This
was attributable mainly to increases of 1,523 million yen in retained earnings and 1,071 million yen in valuationdifference on available-for-sale securities.

3

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/18(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
The U.S. economy appears to be in the midst of a self-sustaining recovery supported by growth in consumer
spending and investments as the number of jobs climbs. A slow economic recovery is expected in Europe, too. In
China, the outlook is for a continuation of the economic upturn backed by infrastructure investments and otheractivities. But there are many sources of uncertainty, notably t he trade protectionism in the United States,
Britain’s departure from the European Union, and rising geopolitical risk in the Middle East and North Korea.
Consequently, the outlook remains unclear.
In Japan, the outlook is for economic growth fueled by increasing exports associated with the global recovery in
IT demand and capital expenditures. A rebound in public-works expenditures is also expected to contribute toeconomic growth. Although Japan’s economy will probably continue to recover gradually, there are doubts about
whether or not this upturn will lead to sustained economic growth.
The overseas steel market will probably remain healthy as China takes meaningful steps to reduce its excess steel
output capacity and the U.S. and European economies remain strong. In Japan, there are expectations for arecovery in the demand for steel as industrial output recovers and construction expenditures climb. But increasing
upward pressure on the price of hot-rolled steel sheets, the main raw material for the Yodogawa Steel Group’s
products, the persistently high cost of zinc and other negative factors pose challenges. For these reasons, theoperating environment is likely to remain uncertain.
The Yodogawa Steel Group will continue to focus on increasing sales of s trategic products, such as YODO Hyper
GL Color and YODO fire-proof panel Grand Wall, in accordance with the medium-term management plan.
The forecast for consolidated performance in the current fiscal year is based on this outlook for the economy andsteel market.

4

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/18

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Millions of yen)First quarter of FY3/18(as of Jun. 30, 2017)

FY3/17(as of Mar. 31, 2017)
AssetsCurrent assets
Cash and deposits

40,76136,440Notes and accounts receivable-trade41,10342,093

Securities
Merchandise and finished goods-

9

11,404

13,614Work in process

3,457

4,049

Raw materials and supplies

10,646

13,012

Other

6,928

4,931

Allowance for doubtful accounts

(113)

(114)

114,188

114,037

50,88850,411

10

9

Other

1,416

1,416

Total intangible assets

1,427

1,426

42,574

44,632899

817

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

Investments and other assets
Investment securities
Other
Allowance for doubtful accounts

(0)

(0)

Total investments and other assets

43,47445,45095,78997,287

209,977

211,325

17,80019,423

669-

Income taxes payable

2,770

1,849

Provision for bonuses

1,052

546

Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable

Other

8,155

7,636

Total current liabilities

30,44829,456

Non-current liabilities
Provision for directors’ retirement benefits
Net defined benefit liability

94

62

8,278

7,697

Other

9,781

9,493

Total non-current liabilities

18,154

17,254

48,60346,710Total liabilities

5

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/18

FY3/17(as of Mar. 31, 2017)(Millions of yen)First quarter of FY3/18(as of Jun. 30, 2017)

Net assets
Shareholders’ equity
Capital stock

23,22023,220Capital surplus

20,38820,386

Retained earnings

95,664

97,188Treasury shares(12,199)(12,682)

Total shareholders’ equity

127,074

128,112Valuation difference on available-for-sale securities

14,477

15,548

Revaluation reserve for land

1,626

1,626

Accumulated other comprehensive income

Foreign currency translation adjustment

1,580

1,723

Remeasurements of defined benefit plans(1,516)(1,403)

Total accumulated other comprehensive income

16,167

17,494

Subscription rights to shares

205

201

Non-controlling interests

17,92718,805

Total net assets

161,374

164,614

209,977

211,325

Total liabilities and net assets

6

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/18(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 FY3/18(Apr. 1, 2017 to Jun. 30, 2017)

First three months of FY3/17(Apr. 1, 2016 to Jun. 30, 2016)
Net sales

36,00342,955

Cost of sales

28,50634,296Gross profit

7,497

8,659

Selling, general and administrative expenses

4,160

4,528

Operating profit

3,337

4,131

Non-operating income
Interest income

8093

Dividend income
Share of profit of entities accounted for using
equity method
Other

321

356

64

99

160

162

Total non-operating income

626

711

Non-operating expenses
Interest expenses

52

30

Foreign exchange losses
Cost for employees transferred temporarily tooverseas subsidiaries
Other

353

102

82

74

74

12

Total non-operating expenses

562

220

3,400

4,621

Gain on sales of non-current assets

00

Total extraordinary income

00Extraordinary losses
Loss on sales and retirement of non-current
assetsImpairment loss

14

7

23

3

Loss on valuation of investment securities

213-

Ordinary profit
Extraordinary income

Total extraordinary losses

250

11

3,150

4,610

Income taxes-current

593

953

Income taxes-deferred

468

386

Total income taxes

1,061

1,339

Profit

2,088

3,271

326

555

1,762

2,715

Profit before income taxes

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

7

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/18(Quarterly Consolidated Statement of Comprehensive Income)(For the Three-month Period)First three months of FY3/17(Apr. 1, 2016 to Jun. 30, 2016)
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 FY3/18(Apr. 1, 2017 to Jun. 30, 2017)

2,088

3,271

(1,129)1,051(1,378)

456

183

139

(16)

23

(2,340)

1,670

(252)

4,942

319

4,043

(572)

898

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/18(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 FY3/17 (Apr. 1, 2016 to Jun. 30, 2016)
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

33,096

1,038

807

219

35,162841

36,003-36,003

-

-

-

110

110

641

752

(752)

-

33,096

1,038

807

330

35,272

1,483

36,755(752)

36,003

Segment profit
3,198
147
41
160
3,547
92
3,640
(303)
3,337
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 (303) 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 FY3/18 (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.
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 ofreaders who prefer an English translation.

9