Financial Results for the Fiscal Year ended March 31, 2022
(Japan GAAP)May 13, 2022
Company name:

HANWA Co.,Ltd.

Listed stock exchange: Tokyo

Stock exchange code:

8078(URL https://www.hanwa.co.jp)

Representative:
Yoichi Nakagawa President
Enquiries:
Hisashi Honda
Executive Officer
Scheduled date of Shareholders' Meeting:Jun 24, 2022
Scheduled date of issue of audited financial statements: Jun 27, 2022
Scheduled date of payout of dividend:
Jun 27, 2022

Phone +81-3-3544-2000(Amounts less than one million yen are rounded down)

１．Consolidated financial results for the Fiscal Year ended March 31, 2022 (April 1, 2021 to March 31, 2022)(1) Consolidated operating results（Percentage indicate a change from the previous year）

Net sales
Fiscal Year
ended March 31, 2022
ended March 31, 2021

(Millions of yen)(％)

Operating income

Ordinary income(Millions of yen)

(Millions of yen)(％)

2,164,049－
62,367113.3
1,745,501(8.5)
29,2327.0
Note: Comprehensive income
For the Fiscal Year ended March 31, 2022
For the Fiscal Year ended March 31, 2021
Net income
per share

Fiscal Year
ended March 31, 2022
ended March 31, 2021

Profit attributable toowners of the Company(％)(Millions of yen)(％)

62,718117.6
43,617122.3
28,821－
19,617－50,288 million yen
84.1 %
27,311 million yen－%

Net income
Ratio of net income to
Ratio of ordinary
Ratio of operating
per share(diluted) shareholders' equity income to total assets income to net sales

(yen)

(yen)

1,073.34
482.74

(％)

－
－

(％)

20.5
11.1

(％)

4.9
3.6

2.9
1.7

From the beginning of the fiscal year ending March 31, 2022, the Company applies the Accounting Standard for Revenue Recognition (AccountingStandards Board of Japan Statement No. 29). For this reason, rates of increase/decrease YoY are not shown for net sales.

(2) Consolidated financial position
Total assets(Millions of yen)
As of March 31, 2022
As of March 31, 2021

Note: Shareholders' equity

Shareholders'equity ratio

Net assets(Millions of yen)

1,715,394
824,590
As of March 31, 2022
As of March 31, 2021

Net assets
per share(％)

240,497
191,857
237,117 million yen
189,214 million yen

(yen)

13.8
22.9

5,834.98
4,656.17(3) Consolidated cash flows situation
Cash flows fromOperating activities
Fiscal Year
ended March 31, 2022
ended March 31, 2021

Cash flows from
Investing activities(Millions of yen)

(Millions of yen)

(280,752)
19,004(14,993)(4,190)Cash flows from
Financing activities

Cash and cash
equivalents at end of year
(Millions of yen)
(Millions of yen)

406,820(34,223)

165,083
50,892

２．Cash dividends
Total
amount ofdividend(Annual)Cash dividends per share
1st Quarter 2nd Quarter 3rd Quarter

Year ended March 31, 2021
Year ended March 31, 2022
Year ending March 31, 2023
（estimated）

Year-end

Annual

(yen)

(yen)

(yen)

(yen)

－
－

30.00
50.00

－
－

30.00
50.00

60.00
100.00

－

50.00

－

50.00

100.00

Dividend
Dividend on
payout ratio shareholders'equity(Consolidated(Consolidated))(yen) (Millions of yen)

2,438
4,063

(％)

(％)

12.4
9.3

1.4
1.9

11.1

３．Forecast of consolidated financial results for fiscal year ending March 31, 2023 (April 1, 2022 to March 31, 2023)（Percentage indicate a change from the previous year）

Net sales(Millions of yen) (％)

Annual2,400,000

10.9

Operating income

Ordinary income(Millions of yen) (％)(Millions of yen) (％)

55,000(11.8)

50,000－1－(20.3)

Profit attributable toowners of the Company(Millions of yen) (％)

36,500(16.3)Net income
per share(yen)

898.19Financial Results for the Fiscal Year ended March 31, 2022

《Consolidated Balance Sheets》(Amounts less than one million yen are rounded down)

Millions of yen
March 31, 2021

March 31, 2022

AssetsCurrent assets;
Cash and deposits
Trade notes and accounts receivable
Trade notes, accounts receivable and contract assets
Electronically recorded monetary claims
Inventories
Accounts receivable-other
OthersAllowance for doubtful receivables
Total current assets

50,907356,059―
27,895
127,378
6,224
63,307(1,679)630,093

165,451―
542,444
33,012
243,603
222,549
66,569(1,580)1,272,049

24,81834,457
14,53073,806
7,893

25,534
34,677
17,67677,88910,556

72,472
17,9297,997
805
14,046(454)
112,796
194,497824,590

81,443
12,437
248,541
1,288
12,592(1,403)354,898
443,344
1,715,394

Current liabilities;
Trade notes and accounts payable
Electronically record obligations
Short-term loans payable
Commercial paper
Current portion of bonds payable
Income taxes payable
Accrued bonuses
Provision for product warranties
Commodity forwards contracts liabilities
OthersTotal current liabilities

213,436
21,77265,859―10,013
6,985
3,281
324
5,523
62,026389,222388,294
33,456458,984
40,00010,00016,098
4,223
66
186,766
100,725
1,238,615

Long-term liabilities;
Bonds payable
Long-term loans payable
Deferred tax liabilities
Deferred tax liabilities by land revaluation
Retirement benefits liabilities
OthersTotal long-term liabilities
Total liabilities

30,000193,999
5,611
1,524
5,326
7,048
243,510
632,733

20,000190,890
5,716
1,524
4,454
13,693
236,280
1,474,896

45,651―
137,825(3,729)179,747

45,651
26
180,119(3,729)222,066

15,193372
3,191(4,906)(4,384)
9,467
2,642
191,857
824,590

16,725(1,000)3,191(531)(3,334)
15,0503,379
240,497
1,715,394

Fixed assets;
Property and equipment;
Buildings and structures
Land
OthersTotal property and equipment
Intangible assets
Investments and other assets;
Investment securities
Long-term loans receivable
Long-term guarantee deposits
Deferred tax assets
OthersAllowance for doubtful receivables
Total investments and other assets
Total fixed assets
Total assets

Liabilities;

Net assets;
Shareholders' equity;
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income
Net unrealized holding gains on securities
Deferred hedge profit and loss
Land revaluation difference
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets－2－

Financial Results for the Fiscal Year ended March 31, 2022

《Consolidated Statements of Income and Comprehensive Income》(Amounts less than one million yen are rounded down)

Millions of yen
Year ended
March 31, 2021
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Other income;Interest income
Dividend income
Equity in earnings of affiliates
OthersTotal other income
Other expenses;
Interest expenses
Foreign exchange loss
OthersTotal other expenses
Ordinary income

Year ended
March 31, 2022

1,745,501
1,665,576
79,925

2,164,049
2,045,040
119,008

50,692
29,232

56,64162,367

1,850
1,644
858
1,501
5,855

1,731
1,563
3,321
1,806
8,422

3,764
1,053
1,449
6,267
28,821

4,073
1,848
2,149
8,071
62,718Extraordinary income
Gain on sale of property and equipment
Gain on sale of investment securities
Arbitration related income
Total extraordinary income
Extraordinary loss;
Loss on retirement of property and equipment
Loss on devaluation of investments securities
Provision of allowance for doubtful accounts of affiliates
Total extraordinary loss
Income before income taxes and minority interest

584
126
―
711

―
1,449
145
1,594

116
387
188
692
28,839

―
1,055
118
1,174
63,138

Income, inhabitant & business tax - current
Income tax expense-deferred
Total income taxes
Net income

9,012
(33)
8,978
19,86020,160(1,426)
18,73344,405

Net income attributable to
Owners of the parent
Non-controlling interests

19,617242

43,617
787

9,146
(373)
(2,211)
1,011

1,532
(1,373)
4,109
1,037

Other Comprehensive Income
Net unrealized holding gains on securities
Deferred hedge profit and loss
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive Income
Comprehensive Income

(121)

577

7,451
27,311

5,883
50,288Comprehensive income attributable to
Owners of the parent
Non-controlling interests

27,188122

49,201
1,087－3－

Financial Results for the Fiscal Year ended March 31, 2022

《Consolidated Statements of Changes in Net Assets》(Amounts less than one million yen are rounded down)

Millions of yen
Shareholders' equity

Accumulated other comprehensive income
Net

Remeasure
Total
DeferredForeign
MinorityLand
ments ofvaluation
hedge
currency
definedandrevaluation translationinterests
profit andbenefittranslationdifference adjustments
loss
plans
adjustments
securities

Total
unrealized
Common Capital Retained Treasury shareholders'holding
stock
surplus earnings stock
equitygains onBalance at March 31, 2020
Cumulative effects of changes inaccounting policies
Restated balance

45,651(3,728)－45,651

Increase (decrease) during the term:
Cash dividends paid
Change of scope of consolidated
subsidiaries
Change of scope of equity method
Reversal of land revaluationdifference
Net income attributable toowners of the parent
Purchase of treasury stocks
Capital increase from purchase ofstock of consolidated subsidiaries
Others
Net increase (decrease) during
the term, except for items undershareholders' equity
Total increase (decrease)
Balance at March 31, 2021

－ 119,475－ 119,475(3,728)

745

3,277

(2,434)(5,380)2,250

2,448 166,097

6,042

745

3,277

(2,434)(5,380)2,250

2,448 166,097－

161,398(2,235)(2,235)

88

88

88

911

911

911

85

85

85

19,617

19,617

(0)
(117)
－

(0)
(117)
－

(0)

－
45,651

6,042－

19,617－

161,398

Total
net
assets(117)－－ 18,350－ 137,825(0)(3,729)18,349179,747(2,235)

9,151

(373)

(85)

(2,472)

996

7,216

193

7,410

9,151
15,193

(373)
372

(85)
3,191

(2,472)(4,906)996(4,384)

7,216
9,467

193 25,759
2,642 191,857

Millions of yen
Shareholders' equity
Common Capital Retained
stock
surplus earnings
Balance at March 31, 2021
Cumulative effects of changes inaccounting policies
Restated balance

45,651(3,729)1,402
45,651

Increase (decrease) during the term:
Cash dividends paid
Change of scope of consolidated
subsidiaries
Change of scope of equity method
Reversal of land revaluationdifference
Net income attributable toowners of the parent
Purchase of treasury stocks
Capital increase from purchase ofstock of consolidated subsidiaries
Others
Net increase (decrease) during
the term, except for items undershareholders' equity
Total increase (decrease)
Balance at March 31, 2022

－ 137,825

Accumulated other comprehensive income

Net
Remeasure
Total
DeferredForeign
Minority
Total
unrealizedLand
ments ofvaluation
Treasuryhedge
currency
definedandshareholders' holding
revaluation translationinterests
profit andstockbenefittranslation
equitygains ondifference adjustments
loss
plans
adjustments
securities－ 139,228(3,729)

26
26

372

3,191

(4,906)(4,384)9,467

2,642 191,857

181,150

15,193372

3,191(4,906)(4,384)9,467

2,642 193,259

1,402(3,250)(3,250)(3,250)

223

223

223

133

133

133

－

－

－

43,61743,617(0)－45,651

15,193

1,402

43,617

26

179,747

Total
net
assets

(0)

(0)

－

26

26

167

167

167

40,890180,119(0)(3,729)40,916
222,066

1,531(1,373)

－

4,375

1,049

1,531
16,725(1,373)(1,000)

－
3,191

4,375
(531)

1,049
5,583
(3,334) 15,050

－4－

5,583

737

6,321

737 47,237
3,379 240,497

Financial Results for the Fiscal Year ended March 31, 2022

《Consolidated Statements of Cash Flows》(Amounts less than one million yen are rounded down)

Millions of yen
Year ended
March 31, 2021

Year ended
March 31, 2022

Cash flows from operating activities;
Income before income taxes
Depreciation and amortization
Amortization of goodwill
Increase(decrease) in allowance for doubtful receivables
Interest and dividend income
Interest expense
Equity in earnings of affiliated companies (gain)
Gain on sale of property and equipment
Gain on sale of investment securities of unconsolidated subsidiaries
Loss on retirement of property and equipment
Loss on devaluation of investments securities
Provision of allowance for doubtful accounts of affiliates
Arbitration related income(Increase)decrease in trade receivables(Increase)decrease in trade receivables and contract assets(Increase)decrease in inventories(Increase)decrease in advanced payment
Increase(decrease) in trade notes and accounts payable
Increase(decrease) in deposits received(Increase)decrease in long-term guarantee deposits
Increase(decrease) in retirement benefits
Other, net
Sub totalInterest and dividends received
Interest paid
Income taxes paid
Arbitration related income
Net cash provided by (used in) operating activities

28,839
5,479
468
(167)
(3,494)
3,764
(858)
(584)
(126)
116
387
188
―
(21,603)―282(2,766)
13,576(2,472)(6,385)583
8,663
23,8903,567(3,797)(4,656)―19,004

63,138
6,123
392
690
(3,294)
4,073(3,321)―(1,449)
―
1,055
118
(145)
―
(173,734)(111,643)(12,261)
175,780
27,238(240,054)
552(1,842)(268,582)
3,129(4,155)(11,290)145(280,752)

Cash flows from investing activities;
Payment for time deposits
Proceeds from refund of time deposits
Payment for purchase of property and equipment
Proceeds from sale of property and equipment
Payment for acquisition of investment securities
Proceeds from sale and redemption of investment securities(Increase)decrease in short - term loans receivable, net
Increase in long - term loans receivableCollection of long-term loans receivable
Other, net
Net cash used in investing activities(14)
73(6,332)
1,318(2,788)1,228
1,171(4,701)
7,715(1,860)(4,190)(50)
89(6,287)43(6,054)
2,368(11,730)(239)
10,135(3,266)(14,993)

Cash flows from financing activities;
Increase(decrease) in short-term loans, net
Increase(decrease) in commercial paper, net
Proceeds from long-term debt
Repayments of long-term debt
Payment for redemption of bonds
Payment for cash dividends
Cash dividends paid to minority interest in consolidated subsidiaries
Purchase of investments in subsidiaries resulting in no change in scope of consolidation
Other, net
Net cash provided by (used in) financing activities(10,497)―
12,098(22,802)(10,021)(2,242)
(134)
(134)
(490)
(34,223)

371,11240,00041,005(30,834)(10,013)(3,255)
(133)
(100)
(961)
406,820

2,402(17,006)
67,243632
2250,892

1,265
112,339
50,8921,842
9165,083

Effect of exchange rate changes on cash and cash equivalents
Net increase(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase in cash and cash equivalents from newly consolidated subsidiaries
Increase in cash and cash equivalents resulting from mergers with unconsolidated subsidiaries

Cash and cash equivalents at end of period－5－Financial Results for the Fiscal Year ended March 31, 2022

《Segment information》
Segment information by business category for the fiscal year 2020 and 2021, is as follows:(Amounts less than one million yen are rounded down)

Fiscal Year ended March 31, 2021

Millions of yen

Reportable segment
Steel
Net sales
Customers
Inter-segment
Total
Segment income
Segment assets
Other
Depreciation
Depreciation of Goodwill
Interest income
Interest expenses
Equity in earnings (losses) ofaffiliates
Investment in affiliates
Property, plant and equipment
and Intangible assets increase
Fiscal Year ended March 31, 2022

Primary
Metal
Metal Recycling

896,732 235,347
12,002
3,210
908,734 238,558
19,2393,837
398,212 150,656
4,119
390
268
2,512

16
－
1,001
1,639

Foods

Energy& Living
Materials

77,699 100,507 176,043
1,874
330
7,002
79,573 100,837 183,045
766
2,116
5,548
28,464 41,667 43,034
347
22
0
272

89
－
2
417

205
54
24
195

Overseas
sales
subsidiaries

Subtotal

174,350 1,660,680
7,064
31,485
181,414 1,692,165
1,739
33,24890,501
752,536
216
－
496
387

4,995
468
1,795
5,425

Other

Total

84,821 1,745,501
3,038
34,52387,860 1,780,025
1,455
34,70433,187 785,724
379
－
3
169

Adjustment― 1,745,501(34,523)―(34,523) 1,745,501(5,883)
28,821
38,866 824,590

5,374
468
1,798
5,594

104
－
51
(1,830)

5,479
468
1,850
3,764

547

(32)

25

－

44

63

648

209

858

－

858

5,834

－

211

－

585

1,864

8,496

1,505

10,002－

10,002

6,012

89

249

142

293

158

6,945

638

7,583

199

7,782

Millions of yen

Reportable segment
Steel
Net sales
Customers
Inter-segment
Total
Segment income
Segment assets

Consolidated

Primary
Metal
Metal Recycling

Foods

Energy& Living
Materials

983,651 195,597 127,573 116,167 280,397
24,512
6,373
4,015
531 10,371
1,008,164 201,970 131,588 116,699 290,769
35,958
7,247
2,883
3,024
6,784
563,951 701,699 41,650 52,480 55,050

Overseas
sales
subsidiaries

Subtotal

Other

Total

Adjustment

Consolidated

333,558 2,036,946 127,103 2,164,049－ 2,164,049
339
46,144
3,186
49,330 (49,330)－
333,898 2,083,090 130,289 2,213,379 (49,330) 2,164,049
6,722
62,6203,726
66,346(3,628)62,718140,510 1,555,341 51,476 1,606,818 108,575 1,715,394

Other
Depreciation
4,676
21
361
74
213
286
5,633
381
6,014
108
6,123
Depreciation of Goodwill
392
－
－
－
－
－
392
－
392
－
392
Interest income
345
549
0
2
30
774
1,702
0
1,703
28
1,731
Interest expenses
3,343
2,509
364
424
259
575
7,476
258
7,735
(3,661)
4,073
Equity in earnings of affiliates
1,737
1,070
60
－
88
364
3,321
－
3,321
－
3,321
Investment in affiliates
8,029
1,019
263
－
674
1,980
11,967－
11,967－
11,967
Property, plant and equipment
9,512
107
288
181
298
150
10,540857
11,397163
11,561and Intangible assets increase
Notes:
1. “Other” comprises businesses that are not included in reportable segments, such as lumber section and machinery section.
2. Adjustments are as follows:(1) Adjustments for segment income include intersegment elimination and Group costs that have not been distributed to reportable segments. These
group costs consist mainly of expenses of administrative departments.
(2) Adjustments for segment assets include Group assets that have not been distributed to reportable segments. These group assets consist mainly ofcash and cash equivalents, investment securities and assets of administrative departments.
(3) Adjustments for depreciation include mainly depreciation and amortization expenses of group assets.
(4) Adjustments for interest income and interest expenses include intersegment elimination, revenue and expense that have not been distributed toreportable segments.
(5) Adjustments for property, plant and equipment and intangible assets increase are increases in Group assets.
3. Segment income or loss is adjusted between ordinary income on the consolidated statements of income and comprehensive income.
4. Since the 1st Quarter of the fiscal year 2021, the Company has changed its method of classification of business segments, integrating a part of theSteel business into the Primary Metal business. The classification change also applies to segment information for the previous fiscal year.
5. Since January 2022, the Company has changed its method of classification of business segments, integrating a part of the Overseas sales
subsidiaries business into the Foods business.The classification change also applies to segment information for the previous fiscal year.
6. From the beginning of the fiscal year ending March 31, 2022, the Company applies the Accounting Standard for Revenue Recognition (AccountingStandards Board of Japan Statement No. 29). For this reason, we change the method of calculating revenue for business segments as well.
As a result of this change, compared to the previous method, net sales for this fiscal year decreased by 237,244 million yen in the Steel segment,
276,974 million yen in the Primary metal segment, 853 million yen in the Metal recycling segment, 1,522 million yen in the Foods segment, 554 million yen
in the Energy & Living Materials segment, 60,041 million yen in overseas sales subsidiaries and decreased 1,959 million yen in the Other segment. In
addition, segment income in the Steel segment increased by 114 million yen, and segment assets in the Steel segment decreased 22,565 milliom yen.

－6－

May 13, 2022

Highlights of Consolidated Financial Results for the FY2021(Japan GAAP)HANWA Co., Ltd.

Outline of Financial Results for the FY2021(Unit: billion yen, rounded down to 0.1 billions yen)・ During the fiscal year, economic activity progressed on a recovery trend. Net sales increased to 2,164 billion yen, as transaction volume increased in Steel businesses, and prices of steel
and non-ferrous metals trended upward. Profits expanded in all business segments. Operating income increased by 113% YoY, to 62.3 billion yen, while ordinary income increased by
118% YoY, to 62.7 billion yen, as equity in earnings of affiliates expanded, mainly in the Steel business, and net income attributable to owners of the company increased by 122% to 43.6
billion yen.
・ We plan to pay 100 yen as the annual (50 yen as the interim and 50 yen as the year-end) dividend.

Operating Results
Net sales

FY2020Change1,745.5

2,164.0

―*

79.9

119.0

39.0

Gross profit
SG&A expenses

50.6

56.6

5.9

Main Factors

rate

49%

Net sales increased to 2,164 billion yen, as transaction volume swelled in Steelbusinesses, and prices of steel and nonferrous metals trended upward.

12%*(From the beginning of the fiscal year ending March 31, 2022, the Company applies the
Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan
Statement No. 29). For this reason, rates of increase/decrease YoY are not shown for net
sales.)

29.2

62.3

33.1

113%

Non-operating income

5.8

8.4

2.5

44%
(SG&A expenses)

Non-operating expenses

6.2

8.0

1.8

29%

Ordinary income

28.8

62.7

33.8

118%

0.7

1.5

0.8

124% (Non-operating income/expenses)
Non-operating income increased by 2.5 billion yen and non-operating expenses increasedby 1.8 billion yen.
The main impacts on ordinary income were as follows.
Interest income ：decrease of 0.1 billion yen(YoY)

0.6

1.1

0.4

69%

Income before income taxes
and others

28.8

63.1

34.2

119%

Income taxes

8.9

18.7

9.7

109%

Net income

19.8

44.4

24.5

124%

Owners of the parent(loss)
Non-controlling interests(loss)

19.6
0.2

43.6
0.7

24.0
0.5

EPS (yen)482.74

1,073.34

590.60122%224% (Extraordinary gain/loss)
Gain on sale of investment securities：1.4 billion yen
122%

Comprehensive
income

27.3

50.2

22.9

Steel

Equity in earnings of affiliates:：increase of 2.4 billion yen(YoY)
Interest expenses：increase of 0.3 billion yen(YoY)
Foreign exchange loss: increase of 0.7 billion yen (YoY)

Loss on devaluation of investments securities：1.0 billion yen

Net sales
FY2020

FY2021908.7

1,008.1

84%―

FY202019.2

FY2021

35.9

rate

87%

238.5

201.9

―

3.8

7.2

89%

Metal Recycling

79.5

131.5

―

0.7

2.8

276%

Energy&Living Materials
Overseas sales
subsidiaries
Total for reportablesegments

100.8
183.0

116.6
290.7

―
―

2.1
5.5

3.0
6.7

43%
22%

181.4

333.8

―

1.7

6.7

286%

1,692.1

2,083.0

―

33.2

62.6

88%

Other

87.8

130.2

―

1.4

3.7

156%

Total

1,780.0

2,213.3

―

34.7

66.3

91%

Adjustment(34.5)(49.3)

―

(5.8)

(3.6)

-38%

Consolidated

1,745.5

2,164.0―

28.8

1,715.3

890.8

108%

630.0
194.4

1,272.0
443.3

641.9
248.8

102%
128%

632.7

1,474.8

842.1

133%

301.6
722.9
250.7
557.4
133%/105*% 235%/203*%

421.2
306.7
102pt

140%
122%
85%

62.7

(Net interest-bearing debt)

Net DER
Total net assets

118%

Main Factors

48.6

25%

Shareholders' equity ratio

179.7
9.4
2.6
4,656.17
189.2
22.9/26.0*%

222.0
15.0
3.3
5,834.98
237.1
13.8/15.3*%

42.3
5.5
0.7
1,178.81
47.9-9.1pt

24%
59%
28%
25%
25%
-40%

Cash FlowFY2020

FY2021(Equity capital)(Valuation & translation
adjustments)(Minority interests)
BPS (yen)
Shareholders' equity

Cash flows from operating
activities
Cash flows from investing
activities
Cash flows from financing
activities
Cash and cash equivalents
at end of period

Main Factors

rate

240.4

(Overview)
Due to hedge transactions which involve valuation gains or losses attributable tocounter parties based on contracts, long-term guarantee deposits and short-term loans
payable increased. In addition, due to the market-value accounting treatment of thehedge transaction, accounts receivable-other and commodity forwards contracts
liabilities in which equivalent to valuation losses attributable to counter parties
increased.

(Total Assets)

Total assets increased by 108% from the end of the previous fiscal year, mainly becauseof an increase in long-term guarantee deposits and accounts receivable-other.

(Liabilities)
Liabilities increased by 133% from the end of the previous fiscal year, mainly as a result of
increases in short-term loans payable and commodity forwards contracts liabilities. As interestbearing debt increased by 140%, net debt-equity ratio was turned into 235%（*203%).

(Net assets)
Total net assets increased 25% from the end of the previous fiscal year because ofaccumulation of retained earnings from net income attributable to owners ofparent.Shareholders' equity ratio was 13.8% (*15.3%), which is 9.1 percentage points
lower than at the end of the previous fiscal year.
*Reflecting equity credit attributes of the subordinated loan

YoY
ChangeMain Factors

rate

19.0

(280.7)(299.7)―(4.1)(14.9)(10.8)

258%(34.2)

406.8

441.0

―

50.8

165.0

114.1

224%

(Operating cash flows)Due mainly to increase in long-term guarantee deposits.
(Investment cash flows)Due mainly to increase in execution of short-term loans receivable and purchaseof tangible fixed assets.
(Financial cash flows)Due mainly to increase in short-term loans payable for long-term guarantee deposits.

【Changes in Net Sales】
1st half

3,000.0

2,074.6

1,907.4

1,069.6

1,500.0
500.0【Quarterly Operating Results】

2,164.0

1,745.5

961.4

Net sales
Operating income

800.0

2nd half

600.0
443.9

1,183.7

1,004.9

946.0

801.0

FY2018FY2019FY2020

10.4
200.0

980.3

0.0

1st half

6.5

3Q

4Q FY2021/1Q 2Q

43.6

800.0

22.7

600.0

Forecast(Annual)
Net sales

3Q

4Q

Interest-bearing debt

Net DERNet DER Reflecting subordinated loan

363.2
400.0

20.9

6.8

200.0

-18.8
FY2018

Applying the
AccountingStandard for
Revenue

Applying the
AccountingStandard for
Revenue

Applying the
AccountingStandard for
Revenue

1 .6

722.9

4.0

2.4

3.0

Reflecting subordinated loan
331.1
301.6
1 .6

1 .3

1 .3

1 .3

1 .1

FY2018FY2019FY2020

2.0
2 .0
1.0

0.0

-13.6
FY2019FY2020

FY2021

20.0
18.0
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0

【Changes in Interest-bearing Debt】

19.6
12.8

5.1

560.7

527.7

7.6

623.0
13.1

0.0

FY2021

2nd half

13.9
7.3

13.5
452.6
Applying the
AccountingStandard for
Revenue【Changes in Net Income】
50.0
40.0
30.0
20.0
10.0
0.0
△10.0
△20.0

500.5

18.8

16.9

400.0

Applying the
AccountingStandard for
Revenue
Recognition

944.4

1,000.0(Steel business)
Segment income and profit margin grew. Transaction volume increased amid an upward
trend in demand for steel. Steel products prices continued to rise amid mounting raw-material
costs.
(Primary metals business)
Segment income increased as steel and non-ferrous metal manufacturers resumed operation,transaction volume in stainless-steel base metals and alloys remained strong and nickel pricesrose. As a result, profit margin expanded.
(Metal recycling business)
Segment income increased. With base metals trending at a high level, profit margin was
secured by expansion of aluminum and copper-scrap sales, while transaction volume instainless-scrap increased through utilization of the cargo-collection and inventory functionsof subsidiaries.
(Foods business)
Profit margin expanded as transaction volume with volume retailers increased and the
product prices followed a rising trend. Segment income also increased amid improved
profitability at consolidated subsidiaries in the U.S..
(Energy & Living Materials business)
Segment income increased. With prices for crude oil and petroleum products on a rising
trend, profit margin was secured as transaction volume in palm kernel shells (PKS) and woodpellets increased, while transaction volume in daily necessities and household goods
increased.
(Overseas sales subsidiaries)
Segment income increased. Transaction volume in steel increased in some countries,
including Indonesia and Singapore, while transaction volume in imported steel materials
increased amid mounting tightening supply in the U.S..

Change191.8

2,000.0

Segment income
rate

824.5

Total liabilities

2,500.0*Primary Metal

Foods

*

SG & A expenses increased by 5.9 billion yen YoY, with newly consolidated subsidiaries
contributing 0.7 billion yen to this figure. Personnel expenses rose by 3.1 billion yen
YoY, with 0.5 billion yen of this figure deriving from newly consolidated subsidiaries.

Extraordinary loss

Segment Information

Mar. 2022

Total assets(Interest-bearing debt)―* (Net sales)

Operating income

Extraordinary gain

Mar. 2021

Financial Position(Current assets)(Fixed assets)

Year-on-year

FY2021Comparison with Mar. 2021

FY2021

FY2022(estimated)change0.0

Cash Dividends

FY2020

FY2021

FY2021

FY2022(estimated)

2,164.02,400.0

11%

Interim (yen)

30.00

50.00

50.00

Operating income

62.3

55.0

△12%

Year-end (yen)

30.00

50.00

50.00

Ordinary income

62.7

50.0

△20%

Annual (yen)60.00

100.00100.00Net income attributable toowners of parent

43.6

36.5

△16%

Dividend payout ratio

12%

9%

11%

Since the 1st Quarter of the fiscal year 2021, the Company has changed its method of classification of business segments, integrating a part of the Steel business into the Primary Metal business. Since January 2022, the Company has changed its method ofclassification of business segments, integrating a part of the Overseas sales subsidiaries business into the Foods business. Please note that comparison on a YoY basis is made in accordance with the classification method after the changing.

・Apr.
・Sep.

Topics

・Oct.
・Feb.
・Mar.

Acquired the shares in Suzuki-Sumiden Wire Products Guangzhou Co., Ltd. (SWPG), a manufacturer of high-quality stainless wire in China.
Acquired the shares in Da Ming International Holdings Limited, a holding company of Daming Group which is one of China’s largest distributor of steel products and also
a comprehensive steel service center.
Hanwa Trading (Shanghai) Co., Ltd. , a consolidated subsidiary of the Company, acquired the shares in JiangYin XiaoDa Metal Products Manufacturing Co., Ltd..
The Board of Directors resolved that Yoichi Nakagawa will assume the post of Representative Director and President on April 1, 2022.
Obtained the Digital Transformation Certification