Financial Results for the Fiscal Year ended March 31, 2024
(Japan GAAP)May 10, 2024
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
Director, Managing Executive Officer
Scheduled date of Shareholders' Meeting:Jun 26, 2024
Scheduled date of issue of audited financial statements: Jun 27, 2024
Scheduled date of payout of dividend:
Jun 27, 2024

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, 2024 (April 1, 2023 to March 31, 2024)(1) Consolidated operating results（Percentage indicate a change from the previous year）
Net sales
Fiscal Year
ended March 31, 2024
ended March 31, 2023

(Millions of yen)(％)

Operating income

Ordinary income(Millions of yen)

(Millions of yen)(％)

2,431,980(8.9)
49,722(22.4)
2,668,228
23.3
64,1052.8
Note: Comprehensive income
For the Fiscal Year ended March 31, 2024
For the Fiscal Year ended March 31, 2023
Net income
per share

Fiscal Year
ended March 31, 2024
ended March 31, 2023

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

48,276(24.9)
38,417(25.4)
64,2722.5
51,50518.1
54,198 million yen(24.0) %71,336 million yen
41.9 %Net income
Ratio of operating
Ratio of net income to
Ratio of ordinary
per share(diluted) shareholders' equity income to total assets income to net sales

(yen)

(yen)

944.901,267.44

(％)

－
－

(％)

11.7
19.1

(％)

4.2
4.5

2.0
2.4

(2) Consolidated financial position
Total assets(Millions of yen)
As of March 31, 2024
As of March 31, 2023

Note: Shareholders' equity

Shareholders'equity ratio

Net assets(Millions of yen)

1,166,986
1,157,747
As of March 31, 2024
As of March 31, 2023

Net assets
per share(％)

356,765
308,807351,212 million yen
303,127 million yen

(yen)

30.1
26.2

8,636.03
7,459.39(3) Consolidated cash flows situation
Cash flows fromOperating activities
Fiscal Year
ended March 31, 2024
ended March 31, 2023

Cash flows from
Investing activities

Cash flows from
Financing activities

Cash and cash
equivalents at end of year

(Millions of yen)

(Millions of yen)

(Millions of yen)

(Millions of yen)

18,187284,226

1,014(6,539)(26,319)(351,835)

76,462
84,121

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

Year ended March 31, 2023
Year ended March 31, 2024
Year ending March 31, 2025

（estimated）

Year-end

Annual

(yen)

(yen)

(yen)

(yen)

－
－

50.00
85.00

－
－

80.00
100.00130.00185.00－105.00－105.00210.00

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

5,282
7,523

(％)

(％)

10.3
19.6

2.0
2.3

19.9

* For details, please refer to the news release titled "Notice Concerning Dividends of Surplus (Increased)" announced today (May 10, 2024).
３．Forecast of consolidated financial results for fiscal year ending March 31, 2025 (April 1, 2024 to March 31, 2025)（Percentage indicate a change from the previous year）

Net sales(Millions of yen) (％)

Annual2,800,000

15.1

Operating income

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

61,00022.7

60,000－1－

24.3

Profit attributable toowners of the Parent

Net income
per share(Millions of yen) (％)

43,000

11.9

(yen)

1,057.34

HANWA Co.,Ltd.
Financial Results for the Fiscal Year ended March 31, 2024

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

Millions of yen
March 31, 2023

March 31, 2024

Assets;Current assets;
Cash and deposits
Trade notes, accounts receivable and contract assets
Electronically recorded monetary claims
Inventories
OthersAllowance for doubtful receivables
Total current assets

84,187448,980
55,570253,964
87,333(1,295)
928,741

76,525445,825
95,615
249,490
51,406(1,694)
917,168

57,917(31,360)
26,55736,78658,315(34,542)
23,773
87,117
10,80760,574(33,155)
27,41937,401
62,147(38,022)
24,12588,945
10,006

99,60813,813－
1,261
19,012(2,613)131,082
229,006
1,157,747

106,062
20,031
3,840
3,128
20,238(2,436)150,865
249,818
1,166,986

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
OthersTotal current liabilities

278,823
36,701
83,12730,00010,00014,822
4,355
56
101,103558,990

303,848
46,87972,080
－
－
2,602
3,730
95
57,318486,555

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

30,000224,843
10,017871
4,285
19,932289,949
848,940

50,000239,957
15,913867
1,353
15,573
323,665
810,22045,651
26
228,920(3,730)270,866

45,651
1,301
260,959(3,662)
304,249

23,972
673
1,975
8,360
(2,720)32,2605,680
308,807
1,157,747

27,511630
1,966
14,4272,426
46,962
5,553
356,765
1,166,986

Fixed assets;
Property and equipment;
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Land
Others
Accumulated depreciation
Others, net
Total property and equipment
Intangible assets
Investments and other assets;
Investment securities
Long-term loans receivable
Retirement benefits assets
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
Non-controlling interests
Total net assets
Total liabilities and net assets－2－

HANWA Co.,Ltd.
Financial Results for the Fiscal Year ended March 31, 2024

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

Millions of yen
Year ended
March 31, 2023
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
Commission fee
OthersTotal other expenses
Ordinary income
Extraordinary income;Gain on sale of property and equipment
Gain on sale of investment securities
Gain on bargain purchase
Arbitration related income
Total extraordinary income
Extraordinary loss;
Loss on devaluation of investment securities
Value added taxes for prior periods
Total extraordinary loss
Income before income taxes and non-controlling interests
Income, inhabitant & business tax - current
Income tax expense-deferred
Total income taxes
Net income
Net income attributable to;
Owners of the parent
Non-controlling interests
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
Comprehensive income attributable to;
Owners of the parent
Non-controlling interests－3－

Year ended
March 31, 2024

2,668,228
2,539,686
128,541

2,431,980
2,312,135
119,845

64,43564,10570,122
49,722

3,676
7,467
4,194
2,033
17,372

4,775
3,473
3,532
1,728
13,511

9,969
681
3,432
3,121
17,20564,272

8,754
555
3,696
1,951
14,957
48,276

14,417655
722
268
16,063

1,204
5,492
－
－
6,697

－
4,375
4,375
75,961

1,085
－
1,085
53,88824,364(1,145)23,21852,742

14,136387
14,52439,36451,505
1,237

38,417
946

7,246
1,674
8,077
625

3,380
(43)
5,508
5,143

970

845

18,594
71,336

14,83454,19869,8781,457

53,1271,070

HANWA Co.,Ltd.

Financial Results for the Fiscal Year ended March 31, 2024

《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

Common Capital Retained Treasurystock
surplus earnings stock
Balance at March 31, 2022

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
Deposition of treasury stocks
Capital increase from purchaseof stock of consolidated
subsidiaries
Net increase (decrease) during
the term, except for items undershareholders' equity
Total increase (decrease)
Balance at March 31, 2023

(3,729) 222,066(4,063)(4,063)(4,063)

246

246

246

(103)

(103)

(103)

1,216

1,216

1,216

51,50551,50551,505

(1)
－

(1)
－

－

－

(1)
－

－

- 48,800
26 228,920(1) 48,799(3,730) 270,866

16,725

NonDeferred
Foreign
Remeasurem
Total
Total net
Land
hedge
currency
ents ofvaluation and controlling
revaluation translation
assetsinterests
definedtranslation
profit anddifference adjustments benefit plans adjustmentsloss

26 180,119－

45,651Net
Total
unrealized
shareholde
holdingrs'
gains onequitysecurities(1,000)

3,191

(531)

(3,334)

15,0503,379 240,497

7,247

1,674

(1,216)

8,891

613

17,2092,300

19,5107,247
23,972

1,674
673(1,216)
1,975

8,891
8,360

613
(2,720)17,20932,2602,300 68,310
5,680 308,807

Millions of yen
Shareholders' equity

Accumulated other comprehensive income

Common Capital Retained Treasurystock
surplus earnings stock
Balance at March 31, 2023

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
Deposition of treasury stocks
Capital increase from purchaseof stock of consolidated
subsidiaries
Net increase (decrease) during
the term, except for items undershareholders' equity
Total increase (decrease)
Balance at March 31, 2024

(3,730) 270,866(6,707)(6,707)(6,707)

262

262

262

58

58

58

8

8

8

38,41738,41738,417

(1)
147

(1)
147

1,196

1,196

1,196

1,275 32,039
1,301 260,959(1)
69

68 33,383(3,662) 304,249

23,972

NonDeferred
Foreign
Remeasurem
Total
Total net
Land
hedge
currency
ents ofvaluation and controlling
revaluation translation
assetsinterests
definedtranslation
profit anddifference adjustments benefit plans adjustmentsloss

26 228,920

78－
45,651Net
Total
unrealized
shareholde
holdingrs'
gains onequitysecurities

673

1,975

8,360

(2,720)32,2605,680 308,807

3,538

(43)

(8)

6,067

5,147

14,701

(126)

3,538
27,511

(43)
630

(8)
1,966

6,067
14,427

5,147
2,426

14,701
46,962(126) 47,958
5,553 356,765－4－

14,575

HANWA Co.,Ltd.
Financial Results for the Fiscal Year ended March 31, 2024

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

Millions of yen
Year ended
March 31, 2023

Year ended
March 31, 2024

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 bargain purchase
Gain on sale of investment securities
Loss on devaluation of investment securities
Arbitration related income
Value added taxes for prior periods(Increase)decrease in trade receivables and contract assets(Increase)decrease in inventories(Increase)decrease in accounts receivable-other(Increase)decrease in advance payment
Increase(decrease) in trade payable
Increase(decrease) in accounts payable-other
Increase(decrease) in deposits received
Increase(decrease) in advances received
Increase(decrease) in retirement benefit asset or liability
Other, net
Sub totalInterest and dividends received
Interest paid
Income taxes (paid) refund
Arbitration related income
Net cash provided by (used in) operating activities

75,961
7,368
193
805
(11,144)
9,969(4,194)(14,417)
(722)
(655)
－
(268)
4,375
88,701
6,714
198,852
8,903(116,530)
33,282(22,774)
1,730
706
42,550309,407
10,773(9,790)(26,431)268
284,226

53,8889,358
78
60(8,249)8,754(3,532)(1,204)－(5,492)
1,085－－(29,736)
11,516
21,6553,480
29,442(32,165)(14,045)(7,452)619
7,741
45,803
7,417(8,227)(26,806)－
18,187

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
Purchase of shares of subsidiaries resulting in change in scope of consolidation(Increase)decrease in short-term loans receivable, net
Increase in long-term loans receivableCollection of long-term loans receivable
Other, net
Net cash provided by (used in) investing activities

(49)
401
(12,858)
17,566(3,413)
1,331(7,400)2,318(3,529)125(1,031)(6,539)(13)
16(9,629)1,888(1,940)
8,997
－
(775)
(2,649)7,603(2,482)
1,014

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
Proceeds from issuance of bonds
Payment for redemption of bonds
Payment for cash dividends
Cash dividends paid to non-controlling interests 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(357,803)(10,000)
50,630(39,186)
19,911(10,000)(4,067)(309)－(1,010)(351,835)(18,498)(30,000)
92,000(72,131)
19,909(10,000)(6,696)
(93)
(46)
(763)
(26,319)

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
Cash and cash equivalents at end of period(7,279)(81,427)
165,083464
84,121(827)(7,944)
84,121
286
76,462－5－

HANWA Co.,Ltd.
Financial Results for the Fiscal Year ended March 31, 2024

《Segment information》
Segment information by business category for the fiscal year 2022 and 2023, is as follows:(Amounts less than one million yen are rounded down)

Fiscal Year ended March 31, 2023

Millions of yen

Reportable segment
Steel
Net sales
Customers
Inter-segment
Total
Segment income(loss)
Segment assets
Other
Depreciation
Depreciation of Goodwill
Interest income
Interest expenses
Equity in earnings (losses)of affiliates
Investment in affiliates
Property, plant andequipment and Intangible
assets increase

Primary
Metal

Metal
Recycling

Foods

Energy& Living
Materials

Overseas
sales
subsidiaries

Subtotal

267,389 144,406 127,392 349,216 404,976 2,526,068
6,647
2,784
1,186 11,759 44,233 96,056
1,262,130 274,037 147,191 128,578 360,976 449,210 2,622,125
28,477 13,934
6,135(960) 11,574
7,278 66,439
589,143 156,421 45,586 66,113 57,355 87,403 1,002,025
1,232,686

29,444

Other

Total

142,160
3,880
146,040
3,083
43,6152,668,228
99,9372,768,165
69,522
1,045,640

Adjustment－ 2,668,228(99,937)－(99,937) 2,668,228(5,249)64,272
112,107 1,157,747

5,523
193
914
5,711

25
－
1,448
10,052

285
－
0
831

108
－
3
699

234
－
43
547

577
－
1,389
1,351

6,754
193
3,798
19,193

499
－
0
317

7,253
193
3,799
19,510114－(122)(9,540)

7,368
193
3,676
9,969

(419)

3,246

96

－

128

1,142

4,194

－

4,194

－

4,194

8,007

4,229

484

－

942

3,514

17,177－

17,177－

17,177

15,327

233

476

401

363

809

17,612

4,136

21,748430

22,179Fiscal Year ended March 31, 2024

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)of affiliates
Investment in affiliates
Property, plant andequipment and Intangible
assets increase

Consolidated

Primary
Metal

Metal
Recycling

Foods

Energy& Living
Materials

Overseas
sales
subsidiaries

Subtotal

216,332 113,954 122,113 338,607 312,437 2,319,622
6,720
2,748
828
7,894 26,479 68,628
1,240,134 223,052 116,702 122,941 346,502 338,917 2,388,251
25,694
8,670
1,134
1,331
6,563
7,820 51,214
627,492 115,035 40,371 70,901 69,605 76,006 999,412
1,216,177

23,957

Other

Total

112,358
6,929
119,287
3,609
38,602

2,431,980
75,5572,507,538
54,824
1,038,015

Adjustment

Consolidated－ 2,431,980(75,557)－(75,557) 2,431,980(6,548)48,276
128,971 1,166,986

6,395
78
730
5,646

100
－
1,096
1,519

382
－
2
571

186
－
20
753

376
－
99
450

667
－
2,668
1,857

8,109
78
4,619
10,797

658
－
13
220

8,768
78
4,632
11,018590－
143(2,263)

9,358
78
4,775
8,754

(675)

3,094

59

－

117

936

3,532

－

3,532

－

3,532

8,770

7,018

582

－

1,059

4,693

22,125－

22,125－

22,125

7,660

90

623

139

580

1,813

10,906976

11,882497

12,380Notes:
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 or loss on the consolidated statements of income and comprehensive income.

－6－

May 10, 2024

Highlights of Consolidated Financial Results for the FY2023(Japan GAAP)HANWA Co., Ltd.

Outline of Financial Results for the FY2023(Unit： billion yen, rounded down to 0.1 billions yen)・ During the fiscal year, net sales decreased by 9% YoY, to 2,431.9 billion yen and operating income decreased by 22% YoY, to 49.7 billion yen, because prices of the
products represented by steel, non-ferrous metal and crude oil were at lower levels on a year-on-year comparison and demand for steel and scrap decreased. Ordinary
income decreased by 25% YoY, to 48.2 billion yen, mainly because dividend income from strategic investments decreased. Net income attributable to owners of theparent decreased by 25% to 38.4 billion yen.

Mar. 2024

1,157.7

1,166.9

9.2

1%

928.7
229.0

917.1
249.8

(11.5)
20.8

(1%)
9%

Total liabilities

848.9

810.2

(38.7)(5%) (Liabilities)(Interest-bearing debt)

380.9
296.7

365.4
288.9

98%/83*%

82%/70*%(15.5)(7.8)(16pt)

(4%)
(3%)
(16%)

308.8

356.7

47.9

16%

Total assets

・ We plan to pay 185 yen as the annual (85 yen as the interim and 100 yen as the year-end) dividend.
Operating Results
Net sales

FY2022

FY2023

2,668.2

Gross profit

2,431.9

YoY
Change(236.2)(9%) (Net sales)
Net sales decreased by 9% YoY, to 2,431.9 billion yen, because prices of the
products represented by steel, non-ferrous metal and crude oil were at lower levels(7%)
on a year-on-year comparison and demand for steel and scrap decreased.
9% (SG&A expenses)
SG & A expenses increased by 5.6 billion yen YoY, with 0.2 billion yen of this(22%)
figure deriving from newly consolidated subsidiaries.

128.5

119.8

(8.6)

SG&A expenses

64.4

70.1

5.6

Operating income

64.1

49.7

(14.3)

Non-operating income

17.3

13.5

(3.8)

(22%) (Non-operating income/expenses)

Non-operating expenses

17.2

14.9

(2.2)

(13%)

Ordinary income

64.2

48.2

(15.9)(25%)

Extraordinary gain

16.0

6.6

(9.3)

(58%)

Extraordinary loss
Income before income
taxes and others

Income taxes

4.3

1.0

75.9

53.8

(3.2)
(22.0)(Current assets)(Fixed assets)
Main Factors

rate

Equity in earnings of affiliates ： decrease of 0.6 billion yen(YoY)
Interest expenses ： decrease of 1.2 billion yen(YoY)
Foreign exchange loss ： decrease of 0.1 billion yen(YoY)
Commision fee ： increase of 0.2 billion yen(YoY)

(29%)

14.5

(8.6)

(37%)

Net income

52.7

39.3

(13.3)(25%)

Owners of the parent

51.5
1.2

38.4
0.9

(13.0)(0.2)

EPS (yen)

1,267.44

944.90(322.54)

(25%)
(24%)
(25%)

Comprehensive
income71.3

54.1(17.1)(24%)(Extraordinary gain/loss)

Non-controlling interests

Segment
Information

Net sales
FY2022

FY2023Gain on sales of property and equipment ： decrease of 13.2 billion yen(YoY)
Gain on sales of investment securities ： increase of 4.8 billion yen(YoY)
Gain on bargain purchase ： decrease of 0.7 billion yen(YoY)
Arbitration related income ： decrease of 0.2 billion yen(YoY)
Loss on devaluation of investment securities ： 1.0 billion yen
Value added taxes for prior periods ： decrease of 4.3 billion yen(YoY)

FY2022

FY2023

Total net assets(Equity capital)

Shareholders' equity ratio

Cash Flowrate

Main Factors

1,262.1

1,240.0

(2%)

28.4

25.6

(10%)

Primary Metal

274.0

223.0

(19%)

13.9

8.6

(38%)

Metal Recycling

147.1

116.7

(21%)

6.1

1.1

(82%)

Foods
Energy&Living Materials
Overseas sales
subsidiaries

128.5
360.9
449.2

122.9
346.5
338.9

(4%)
(4%)
(25%)

(0.9)
11.5
7.2

1.3
6.5
7.8

―
(43%)
7%

Total for reportablesegments

2,622.1

Other

146.0

119.2

(18%)

3.0

3.6

17%

Total

2,768.1

2,507.4

(9%)

69.5

54.7

(21%)

Adjustment(99.9)(75.4) (24%)

(5.2)

(6.4)

23%

Consolidated

Topics2,668.2

2,388.1

2,431.9

(9%)

(9%)

66.4

64.2

51.1

48.2

(23%)

(25%)

(Steel business)
Net sales decreased. Transaction volume of steel decreased due to a decline in thenumber of new housing starts. In addition, segment income decreased, because theprofitability of some construction projects deteriorated.
(Primary metals business)
Net sales decreased, because the transaction volume of stainless-steel products
decreased, as well as current adjustment phase of various merchandises. In addition,
segment income decreased due to falls in dividend income from strategic investments.
(Metal recycling business)
Net sales decreased, because prices of base metal were at a lower level on a global basis
compared to the previous fiscal year, and transaction volume decreased due to weak
demand for mainly stainless scrap. In addition, segment income decreased due toappraisal gain from commodity forwards contracts in hedge transactions shrunk.
(Foods business)
Net sales decreased, and segment income increased. Although the crab market prices
remained low compared to the previous fiscal year, which pushed down profits, they
have recently been on a gradual recovery trend. In addition, the purchase cost risings ofsalmon, prawns and chickens started to be sufficiently reflected in the selling prices.
(Energy & Living Materials business)
Net sales and segment income decreased. Although transaction volume of the products
such as palm kernel shells (PKS) and wood pellet increased, lower petroleum productprices compared to the previous fiscal year had affected greatly on the businessperformance.
(Overseas sales subsidiaries)
Net sales decreased. Transaction volume at sales subsidiaries, mainly in Indonesia andU.S., decreased due to sluggish demand for steel in overseas markets. In addition,
decreases in market prices of steel products and non-ferrous metal products. On the other
hand, segment income increased mainly due to financial income from strategic
investments.

・Apr Established HANWA AUSTRALIA PTY LTD. as a subsidiary of the Company.
Established HANWA PHILIPPINES CORPORATION as a subsidiary of the Company.
Acquired 80% of the shares of TOHO METAL Co., Ltd. and made it a subsidiary of the Company.

Change(Total Assets)
Total assets increased by 1% from the end of the previous fiscal year, mainly
because of an increase in electronically recorded monetary claims andinvestment securities.

Liabilities decreased by 5% from the end of the previous fiscal year, mainly
because of redemption of commercial paper, as well as a decrease in income
taxes payable after payment of taxes including corporate tax in which thebusiness results of the previous fiscal year were reflected.
As interest-bearing debt decreased by 4%, net debt-equity ratio was turned
into 82%（*70%).

33.3
14.7
(0.1)
1,176.64
48.0

12%
46%
(2%)
16%
16%

26.2/28.3*% 30.1/32.2*%

3.9pt

15%

(Net assets)
Total net assets increased 16% from the end of the previous fiscal year
because of accumulation of retained earnings from net income attributable toowners of parent as well as a fluctuation in foreign currency translation
adjustments.
Shareholders' equity ratio was 30.1% (*32.2%), which is 3.9 percentage
points higher than at the end of the previous fiscal year.
*Reflecting equity credit attributes of the subordinated loan

YoY

FY2022

FY2023

284.2

18.1

(266.0)

(94%)

(6.5)

1.0

7.5

―

(351.8)(26.3)

325.5

93%

84.1

76.4

(7.6)

(9%)

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

304.2
46.9
5.5
8,636.03
351.2

BPS (yen)
Shareholders' equity

ChangeMain Factors

rate(Operating cash flows)Due mainly to increase in trade payables and decrease in accounts receivable-other.

(Investment cash flows)Due mainly to sale and redemption of investment securities and collection of
long-term loans receivable.
(Financial cash flows)Due mainly to repayment long-term debt and redemption of commercial paper.

【Changes in Net Sales】【Quarterly Operating Results】

3,500.0

1,000.0

3,000.0

2,668.2
1,745.5

2,000.0
1,500.0500.0

2,164.0

1,329.3

1,183.7

Applying the
AccountingStandard for
Revenue
Recognition

Applying the
AccountingStandard for
Revenue
Recognition

944.4

1,000.0

Steel

270.8
32.2
5.6
7,459.39
303.1(Valuation & translation
adjustments)

2,500.0

Segment income
rate

Net DER

Dividend income ： decrease of 3.9 billion yen(YoY)

(75%)

23.2

(Net interest-bearing debt)(Non-controlling interests)

Non-operating income decreased by 3.8 billion yen and non-operating expenses
decreased by 2.2 billion yen.
The main impacts on ordinary income were as follows.
Interest income ： increase of 1.0 billion yen(YoY)

Comparison with Mar. 2023

Mar. 2023

Financial Position

801.0

980.3

0.0

FY20202,431.9
1,230.7
Applying the
AccountingStandard for
Revenue
Recognition

1,338.9

1,201.2

FY2022

FY2023800.0

Operating income

60.0

Applyng the Accounting Standard for Revenue Recognition

50.0

Net sales

684.5

600.0

1st half

38.4

10.0
0.0

FY2022/3Q

4Q

FY2023/1Q

2Q

3Q

4Q

Interest-bearing debt
Net DER
DER
722.9 subordinatedNetloan
Reflecting

5.0

600.0

37.1
20.9

380.9

365.4

1 .0

0 .8

0 .8

0 .7

FY2022

FY2023

301.6
300.0

19.0

1 .3

2 .0

1 .1
0.0

FY2021

FY2022

FY2023

FY2023

FY2024(estimated)

FY2020Cash Dividends

4.0
3.0

2 .4
19.4

6.8

Net sales

20.0

7.3

Reflecting subordinated loan

14.4

19.6

Forecast(Annual)40.0【Changes in Interest-bearing Debt】

22.7

FY2020

605.3

16.1

10.1

8.1

200.0

51.5
43.6

0.0

16.2

14.7

900.0

2nd half

12.8

592.5

0.0

FY2021

40.0

20.0

608.7

625.4

30.0
400.0

【Changes in Net Income】
60.0

644.8

FY2021

FY2022

FY2023change

2.0
1.0
0.0

FY2024(estimated)

2,431.92,800.0

15%Interim (yen)

50.00

85.00

105.00Operating income

49.7

61.0

23%

Year-end (yen)80.00

100.00105.00Ordinary income

48.2

60.0

24%

Annual (yen)130.00185.00210.00Net income attributableto owners of parent

38.4

43.0

12%

DOE*

―

2.7%

2.8%

* DOE (Dividend on equity ratio) = Total dividend / Beginning total shareholders' equity