November 4, 2020

Summary of the Consolidated Financial Results for the Second Quarterof the Fiscal Year Ending March 31, 2021 (FY3/21)(Six Months Ended September 30, 2020)[Japanese GAAP]
Company name:

Yodogawa Steel Works, Ltd.
Stock exchange listed: Tokyo, 1st Section
5451
URL: https://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 9, 2020
Scheduled date of payment of dividend:
December 1, 2020
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, 2020 to September 30, 2020) of FY3/21(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales

Operating profit

Millions of yen

Six months ended Sep. 30, 2020
Six months ended Sep. 30, 2019

% Millions of yen

69,39478,261

Note: Comprehensive income (millions of yen):(11.3)(6.5)% Millions of yen

3,054
2,906

5.1
(4.8)

4,209
3,312

Six months ended Sep. 30, 2020:
Six months ended Sep. 30, 2019:% Millions of yen

27.1(27.3)

2,914
1,998

%

45.8
(29.6)

8,561 (up 487.9%)
1,456 (down 21.4%)

Diluted net income
per share

Net income per share
Six months ended Sep. 30, 2020
Six months ended Sep. 30, 2019

Profit attributable toowners of parent

Ordinary profit

Yen

Yen

99.75
67.80

99.31
67.53

(2) Consolidated financial position
Total assets

Net assets

Shareholders’ equity ratio

Millions of yen

Millions of yen%

As of Sep. 30, 2020
As of Mar. 31, 2020

211,169
201,125

173,838
167,29174.2
74.6

Reference: Shareholders’ equity (millions of yen):

As of Sep. 30, 2020:

156,716

As of Mar. 31, 2020:

150,037

2. Dividends
1Q-endDividend per share
3Q-end2Q-endYear-end

Total

Yen

Yen

Yen

Yen

Yen

-

30.00
35.00

-

40.00

70.00

-

35.00

70.00

Fiscal year ended Mar. 31, 2020
Fiscal year ending Mar. 31, 2021
Fiscal year ending Mar. 31, 2021
(Forecast)

Note: Revisions to the most recently announced dividend forecast: Yes
For further details, please refer to the press release dated today (November 4, 2020) about earnings forecast, year-end dividend forecast
and dividends of surplus (interim dividend) (Japanese version only).

3. Consolidated Forecasts for FY3/21 (April 1, 2020 to March 31, 2021)
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

144,000

(6.5)

5,800

5.7

7,200

(3.0)

4,900

26.9

168.48

Note: Revisions to the most recently announced consolidated earnings forecast: Yes
For further details, please refer to “1. Qualitative Information on Quarterly Consolidated Financial Pe rformance, (3) Explanation ofConsolidated Forecast and Other Forward-looking Statements” on page 3 and the press release dated today (November 4, 2020) about
earnings forecast, year-end dividend forecast and dividends of surplus (interim dividend) (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: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: None
4) Restatements: None

(4) Number of outstanding shares (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
As of Sep. 30, 2020:

35,837,230 shares

As of Mar. 31, 2020:

35,837,230 shares

As of Mar. 31, 2020:

6,509,597 shares

Six months ended Sep. 30, 201929,475,946 shares

2) Number of treasury shares at the end of the period
As of Sep. 30, 2020:

6,906,952 shares

3) Average number of shares outstanding during the period
Six months ended Sep. 30, 2020:

29,214,454 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 2Q of FY3/21

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

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

Notes to Quarterly Consolidated Balance Sheet

8

Segment and Other Information

9

1

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 2Q of FY3/21

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, 2021, the environment facing the Japanese economy
remained extremely challenging due to the worldwide spread of the new coronavirus infection (the COVID-19
pandemic). On the other hand, improvement was seen in some sectors following the lifting state of emergency
and the effects of the government’s economic measures.
In the global economy, there was a significant slowdown due to the spread of the COVID-19 pandemic. However,there is gradual improvement as lockdowns in major countries and restraints on economic activity are graduallyeased.
In the steel market in Japan, domestic demand was generally weak due to fac tors including decreases inconstruction starts and machinery orders. But there was some improvement, as automobile and other production
plants resumed operations.
The overseas steel market continued to be affected by the COVID-19 pandemic but there are also indications thatstringent restrictions on movement of people are being relaxed in the United States, EU, and other countries.
Nevertheless, market remains stagnant due to the impact of other factors such as U.S. import restrictions andprolonged U.S.-China trade friction.
The Yodogawa Steel Group’s net sales in the first half decreased 8,867 million yen to 69,394 million yen.
Operating profit increased 147 million yen to 3,054 million yen, ordinary profit increased 896 million yen to
4,209 million yen, and profit attributable to owners of parent increased 915 million yen to 2,914 million yen.
In Japan, sales decreased due to lower sales of steel sheets, but earnings were higher because of cost reduction.
Overseas, sales and earnings decreased overall mainly because of lower sales at our Taiwan subsidiary Sheng Yu
Steel Co., Ltd. (SYSCO).
Results by business segment are as follows.
1) Steel Sheet-related BusinessNet sales totaled 64,062 million yen and operating profit was 3,259 million yen. Sales declined and earnings
increased.
Steel Sheet Segment
In Japan, sales decreased because of lower sales volume of plated steel sheets to specific high -demand customers
as well as a decrease in sales volume of steel sheets for general distribution due to sluggish construction demandbecause of COVID-19 pandemic. However, earnings increased due to cost reduction.
Overseas, SYSCO in Taiwan posted an operating loss due mainly to a significant decrease in the sales volume of
pre-painted steel sheets in the domestic market in Taiwan. Although performance improved in the second quarter,
Yodogawa Shengyu (Hefei) High-Tech Steel Co., Ltd. (YSS), a Chinese subsidiary, was hard-hit, particularlyaround the time of the Chinese New Year ’s holiday, by the impact of the urban blockade measures implemented toprotect against the COVID-19 pandemic. Earnings were lower as a result. PCM Processing (Thailand) Ltd. (PPT),a Thai subsidiary, continues to face a difficult business environment. While sales were at about the same level,
profitability improved due to an increase in sales volume of value-added products.
Building Material & Exterior Products Segment
In the building materials category, sales volumes for fire-proof panel wall materials (Yodo Grand Wall) andstorage sheds remained firm, but sales were lower mainly because sales of Yodo Print and YODO Monooki
Storage Sheds decreased. Construction sales were about the same levels as in the same period of the previous
fiscal year.

2

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 2Q of FY3/21

2) Roll BusinessNet sales totaled 1,406 million yen and operating loss was 133 million yen.
Although sales decreased due to lower sales to the iron and steel industry, earnings improved as sales to thenon-ferrous industry were steady in the first quarter.
3) Grating BusinessNet sales totaled 1,597 million yen and operating profit was 47 million yen.
Sales decreased due to a reduction in road projects and other factors but earnings increased because of sales
activities that placed priority on profitability.
4) Real Estate BusinessNet sales totaled 617 million yen and operating profit was 438 million yen.
Sales and earnings increased because of a higher occupancy rate at tenant -occupied buildings.
5) Other Businesses
Net sales totaled 1,709 million yen and operating profit was 55 million yen.
Sales and earnings decreased due to lower sales in the materials sales operations and the warehousing andtransportation businesses.
(2) Explanation of Financial Position
AssetsCurrent assets decreased by 189 million yen from the end of the previous fiscal year to 116,363 million yen. This
was attributable mainly to an increase of 6,642 million yen in cash and deposits, a decrease of 3,152 million yen
in securities and a decrease of 2,405 million yen in raw materials and supplies.
Non-current assets increased by 10,234 million yen from the end of the previous fiscal year to 94,806 million yen.
This was mainly attributable to increases of 8,294 million yen in investment securities and 1,849 million yen inproperty, plant and equipment.
Total assets increased by 10,044 million yen from the end of the previous fiscal year to 211,169 million yen.
Liabilities
Current liabilities increased by 1,245 million yen from the end of the previous fiscal year to 20,755 million yen.
This was attributable mainly to an increase of 1,445 million yen in income taxes payable.
Non-current liabilities increased by 2,251 million yen from the end of the previous fiscal year to 16,576 million
yen. This was attributable mainly to an increase of 2,338 million yen in deferred tax liabilities included in othernon-current liabilities.
Total liabilities increased by 3,497 million yen from the end of the previous fiscal year to 37,331 million yen.
Net assets
Net assets increased by 6,546 million yen from the end of the previous fiscal year to 173,838 million yen. This
was attributable mainly to increases of 1,741 million yen in retained earnings and 5,845 million yen in valuationdifference on available-for-sale securities.

3

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 2Q of FY3/21(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
The outlook for global economy is becoming increasingly uncertain due to a concern about the second wave of
COVID-19 pandemic and prolonged U.S.-China trade friction.
In Japan, the situation is likely to remain severe for the time being although vari ous measures are being
considered and implemented to sustain economic activity amid the COVID -19 pandemic.
In the steel market, although some signs of bottoming out and recovery are now emerging in both the domestic
and overseas markets, the situation is expected to remain both severe and uncertain.
The Yodogawa Steel Group anticipates that the business environment will be challenging. In all regions, ouroverseas subsidiaries continue to be affected by protectionist measures amid unpredictable and unstable demandand cost environment.
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.

4

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 2Q of FY3/21

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Millions of yen)
Second quarter of FY3/21(as of Sep. 30, 2020)

FY3/20(as of Mar. 31, 2020)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Electronically recorded monetary claims-operating
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
Electronically recorded obligations-operating
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

532,65039,117
8,652
15,406
4,145
12,216
4,496(131)
116,553

39,292
36,7392,463
5,500
14,293
3,601
9,811
4,793
(131)
116,363

47,493
1,641

49,342
1,677

34,778658
35,437
84,572
201,125

43,072712
43,78594,806211,169

10,582
2,340
640
250
923
4,772
19,50910,042
2,309
245
1,695
1,188
5,273
20,755

79

46

7,281
6,963
14,32433,834

7,337
9,192
16,57637,331

23,22020,381
106,763(13,351)
137,014

23,22020,399108,504(14,106)
138,017

10,476
1,636
1,489
(578)
13,023224
17,029167,291
201,125

16,322
1,636
1,248
(508)
18,698241
16,880173,838
211,169

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 2Q of FY3/21(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statement of Income)(For the Six-month Period)First six months of FY3/20(Apr. 1, 2019 to Sep. 30, 2019)(Millions of yen)First six months of FY3/21(Apr. 1, 2020 to Sep. 30, 2020)

Net sales

78,261

69,394

Cost of sales

66,742

57,791Gross profit

11,51911,603

Selling, general and administrative expenses

8,612

8,548

Operating profit

2,906

3,054

Interest income

260

138

Dividend income

462

344

-

11

Non-operating income

Foreign exchange gains
Gain on valuation of derivatives-

11

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

0

462

257

123

166

205

1,146

1,298

Interest expenses

44

33

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

39

-

83

78

546

-

Other

26

31

Total non-operating income
Non-operating expenses

Total non-operating expenses
Ordinary profit

740

143

3,312

4,209

Extraordinary income
Gain on sales of non-current assets

00Insurance claim income-

13

Total extraordinary income

0

13

56

47

356

-

Impairment loss

00

Loss on disaster

20-

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

Total extraordinary losses

434

48

2,878

4,175

Income taxes-current

973

1,585

Income taxes-deferred

(14)

(274)

Total income taxes

958

1,310

1,920

2,865

Profit before income taxes

ProfitLoss attributable to non-controlling interests

(78)

(48)

Profit attributable to owners of parent

1,998

2,914

6

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 2Q of FY3/21(Quarterly Consolidated Statement of Comprehensive Income)(For the Six-month Period)First six months of FY3/20(Apr. 1, 2019 to Sep. 30, 2019)(Millions of yen)First six months of FY3/21(Apr. 1, 2020 to Sep. 30, 2020)

1,920

2,865

734

5,824

(0)

-

(1,270)

(246)

105

79

(32)

38

ProfitOther 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

(463)

5,696

1,456

8,561

1,999

8,588

(543)

(27)

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 2Q of FY3/21(3) Notes to Quarterly Consolidated Financial Statements
Going-concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Not applicable.
Notes to Quarterly Consolidated Balance Sheet
Contingent liabilities
Yodogawa Steel Works has determined that, depending on the location, conditions and other aspects of their use,
there have been problems involving the appearance and durability of some building exterior pre -painted steel
sheets manufactured between 2007 and 2016 that have occurred prior to the end of the expected lifetime of thesesheets. Yodogawa Steel Works has explained this problem to companies that sell these sheets and is covering
repair and other expenses.
Repair and other expenses, including expenses for problems that have occurred but where repairs and otheractivities have not been completed, are recorded as period costs. The costs of the problems involving these sheets
have not been expensed because it is not possible to determine a reliable forecast of how many problems will
occur.
There may be significant repair and other expenses involving these sheets in the coming years depending on
number of problems that occur.

8

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 2Q of FY3/21

Segment and Other Information
Segment information
I. 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 expenses 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.

II. First six months of FY3/21 (Apr. 1, 2020 to Sep. 30, 2020)
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
64,062
1,406
1,597
617
67,684
1,709
69,394
69,394
Inter-segment
219
219
1,012
1,232
(1,232)
sales and transfers
Total
64,062
1,406
1,597
837
67,904
2,722
70,626(1,232)
69,394
Segment profit
3,259
(133)
47
438
3,612
55
3,667
(613)
3,054
(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 (613) 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