Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended March 31, 2018
(Based on Japanese GAAP)May 14, 2018
Company name:

The Japan Steel Works, Ltd.

Stock exchange listing: Tokyo
Stock code:
5631

URL

http://www.jsw.co.jp/

Representative:

Representative Director & President
Executive Officer

Naotaka Miyauchi

Inquiries:

General Manager, General AffairsDepartment

Hiroki Kikuchi

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 26, 2018
June 28, 2018

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

June 27, 2018
Yes

Holding of financial results meeting:

Yes

TEL

03-5745-2001(for analysts and institutional investors)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2018 (from April 1, 2017 to March 31, 2018)(1) Consolidated operating resultsPercentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended March 31, 2018
212,957
0.2
21,31872.8
22,117
82.6
10,712–
Year ended March 31, 2017
212,469(4.9)
12,340(14.4)
12,111(14.3)(4,968)–
Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%–
9.6
7.7
10.0–
(4.6)
4.3
5.8

Diluted earnings pershare

Earnings per shareYen
145.77(67.61)

Year ended March 31, 2018Year ended March 31, 2017(2) Consolidated financial position

Total assets
As of March 31, 2018
As of March 31, 2017

Net assets

Equity ratio

Millions of yen
297,433
275,315

Millions of yen
118,600
107,587

Cash flows fromoperating activities
Millions of yen
26,712
12,023

Cash flows frominvesting activities
Millions of yen(5,077)(13,580)

Net assets per share%
39.3
38.6

Yen
1,592.47
1,446.44(3) Consolidated cash flows

Year ended March 31, 2018Year ended March 31, 2017

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(2,457)
77,879(1,203)58,671

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2017
Year ended March 31, 2018Year ending March 31, 2019
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

––

2.50
17.50

––

12.50
20.00

–
37.501,837
2,755

–
25.7

1.7
2.5–

25.00

–

25.00

50.00

124.5

3. Forecast of consolidated financial results for the year ending March 31, 2019 (from April 1, 2018 to March 31, 2019)
Net sales
Millions of yen
Six months ending
September 30, 2018
Full year

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%Yen

110,000

4.7

10,000(4.5)

10,000(3.4)

8,000

5.4

108.86220,000

3.3

22,0003.2

22,000(0.5)

15,00040.0

204.11

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2018(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 201874,292,607 shares As of March 31, 201774,292,607 shares

Number of treasury shares at the end of the period
As of March 31, 2018

802,503 shares As of March 31, 2017

801,480 shares

73,490,674 shares Year ended March 31, 2017

73,492,317 shares

Average number of shares during the period
Year ended March 31, 20182

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2017

As of March 31, 2018

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

59,80149,42079,03254,542Merchandise and finished goods
Work in process

2,358
58,0372,305
54,663

Raw materials and supplies
Deferred tax assets

5,755
6,473

5,191
7,376

Other
Allowance for doubtful accounts

4,858
(140)

5,710
(142)

186,565

208,679

Buildings and structures, net
Machinery, equipment and vehicles, net

15,491
5,600

15,398
5,689

Tools, furniture and fixtures, net
Land

588
9,721

1,028
10,059

595
235

576
288

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

Leased assets, net
Construction in progress

32,23333,040Intangible assets
Goodwill

Total property, plant and equipment

657

509

Leased assets
Other

193
803

155
1,109

Total intangible assets

1,655

1,774

Investments and other assets
Investment securities

34,33934,67053

293Long-term loans receivable
Claims provable in bankruptcy, claims provable inrehabilitation and other
Net defined benefit asset

292

253

2,472

2,736

Deferred tax assets
Other

15,041
3,116

12,907
3,480

Allowance for doubtful accounts

(455)

(402)

Total investments and other assets

54,86053,93988,74988,754

275,315

297,433

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2017

As of March 31, 2018

Liabilities
Current liabilities
Notes and accounts payable - trade

47,74454,957

11,9084,215

12,004
132

574
866

493
2,296

Advances received
Provision for directors' bonuses

17,00437

18,863
93

Provision for warranties for completed construction
Provision for loss on construction contracts

2,757
2,969

1,729
784

Provision for loss on wind power generator business
Provision for business restructuring

4,655
–

3,365
6,389

Other

15,657

14,308

Total current liabilities

108,390

115,418

34,901
854

39,268
748

175
115

16875

Net defined benefit liability
Long-term guarantee deposited

10,62011,09910,046
11,504

Asset retirement obligations
Other

1,320
251

1,364
237

Total non-current liabilities

59,33763,414

167,727

178,833

Shareholders' equity
Capital stock

19,694

19,694

Capital surplus
Retained earnings

5,467
77,7485,467
86,256

Treasury shares(2,308)(2,310)Total shareholders' equity

100,601

109,107

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

6,381
(301)

7,269
305

Foreign currency translation adjustment
Remeasurements of defined benefit plans

(170)
(211)

(21)
370

Total accumulated other comprehensive income

5,698

7,923

Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Income taxes payableNon-current liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for directors' retirement benefitsTotal liabilities
Net assets

Accumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets

4

1,287

1,569

107,587

118,600

275,315

297,433

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2017

Fiscal year ended
March 31, 2018

Net sales

212,469

212,957

Cost of sales

170,695

163,455

Gross profit

41,77349,501

Direct selling expenses
Indirect selling, general and administrative expenses

9,645
19,787

7,80920,372

Total selling, general and administrative expenses

29,432

28,182

12,34021,318Interest income
Dividend income

49603

66
761

Miscellaneous income

656

1,563

1,309

2,390

273
0258
0

Miscellaneous loss

1,265

1,333

Total non-operating expenses

1,539

1,592

12,111

22,117

Gain on sales of non-current assets
Gain on sales of investment securities

93–

30791

Other–

1

Total extraordinary income

93

824

15
150

29
273

17,874
–

1,352
6,389

55

Selling, general and administrative expenses

Operating profit
Non-operating income

Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Impairment loss
Provision for business restructuring provision
Other
Total extraordinary losses

18,045

8,049

Profit (loss) before income taxes(5,841)

14,892

Income taxes - current
Income taxes - deferred

2,819(3,706)

3,633
307(887)

3,940

Total income taxes
Profit (loss)(4,954)

10,951Profit attributable to non-controlling interests

14238

Profit (loss) attributable to owners of parent(4,968)

10,712

5

Consolidated statements of comprehensive income(Millions of yen)

Profit (loss)
Other comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2017

March 31, 2018
(4,954)

10,951

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

2,551
(638)

887
606

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

(251)
1,398

203
581

Total other comprehensive income

3,059

2,278(1,894)

13,230(1,879)12,937(14)

292

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6Consolidated statements of changes in equity
Fiscal year ended March 31, 2017
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

19,694Retained earnings

5,467

Total shareholders'equity

Treasury shares

84,554(2,302)

107,413

Changes of items during period
Dividends of surplus(1,837)(1,837)

Profit attributable to owners ofparent(4,968)(4,968)Purchase of treasury shares
Disposal of treasury shares(0)

Transfer of loss on disposal oftreasury shares

0(5)

(5)

00(0)

–

Net changes of items otherthan shareholders' equity–

Total changes of items during
periodBalance at end of current period––(6,806)(5)(6,811)

19,694

5,467

77,748(2,308)100,601

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-forsale securities

Deferred gainsor losses onhedges

3,830

337

Foreigncurrencytranslation
adjustment
51

Remeasurementsof defined
benefit plans(1,609)Total accumulated
othercomprehensive
incomeNoncontrollinginterests

2,609

1,318

Total net
assets111,340

Changes of items during period
Dividends of surplus(1,837)

Profit attributable to owners ofparent(4,968)Purchase of treasury shares(5)

Disposal of treasury shares

0

Transfer of loss on disposal oftreasury shares–

Net changes of items otherthan shareholders' equity

2,551

(638)

(222)

1,398

3,089

(31)3,058

Total changes of items during
period2,551(638)

(222)

1,398

3,089

(31)

(3,753)

Balance at end of current period

6,381

(301)

(170)

(211)

5,698

1,287

107,587

7Fiscal year ended March 31, 2018
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

19,694Retained earnings

5,467

Total shareholders'equityTreasury shares

77,748(2,308)100,601

Changes of items during period
Dividends of surplus(2,204)(2,204)

Profit attributable to owners ofparent

10,712

10,712

Purchase of treasury shares

(2)

(2)

00

Disposal of treasury shares(0)

Transfer of loss on disposal oftreasury shares

0(0)

–

–

8,508

(2)

8,505

19,694

5,467

86,256(2,310)109,107–

Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current period

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-forsale securities

Deferred gains
or losses onhedges

6,381

(301)

Foreigncurrencytranslation
adjustment(170)

Remeasurementsof defined
benefit plans(211)

Total accumulated
othercomprehensive
incomeNoncontrollinginterests

5,698

1,287

Total netassets

107,587

Changes of items during period
Dividends of surplus(2,204)

Profit attributable to owners ofparent

10,712

Purchase of treasury shares(2)

Disposal of treasury shares

0

Transfer of loss on disposal oftreasury shares–

Net changes of items otherthan shareholders' equity

887

606

149

581

2,225

282

2,507

Total changes of items during
period

887

606

149

581

2,225

282

11,013

Balance at end of current period

7,269

305(21)

370

7,923

1,569

118,600

8Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit (loss) before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2017

March 31, 2018
(5,841)

14,892

Depreciation
Amortization of goodwill

7,858
199

4,097
211

Impairment loss
Interest and dividend income

17,874(653)

1,352(827)

273

258

00–(789)

Loss on retirement of property, plant and equipment andintangible assets

150273

Loss (gain) on sales of property, plant and equipment
Decrease (increase) in operating receivables

(78)
(122)

(1)
(2,848)(2,987)
1,022

6,101
3,994

717

(1,027)

Increase (decrease) in provision for loss on construction
contracts

1,699(2,184)

Increase (decrease) in provision for loss on wind power
generator business(4,032)(1,289)

Increase (decrease) in business restructuring reserve
Other, net–
(1,023)

6,389
(250)

Subtotal

15,05628,351

660
(273)

827
(257)

Income taxes (paid) refund(3,420)(2,207)

Net cash provided by (used in) operating activities

12,023

26,712

Payments into time deposits
Proceeds from withdrawal of time deposits(1,001)
545

(607)
657

Purchase of property, plant and equipment and intangible
assets(13,348)(6,549)Proceeds from sales of property, plant and equipment andintangible assets

131

76

Purchase of investment securities
Proceeds from sales of investment securities

(345)
0(12)
1,869

Repayments of long-term guarantee deposits
Decrease (increase) in short-term loans receivable

(67)
0(89)
(1)

Payments of long-term loans receivableCollection of long-term loans receivable–
10(300)50

Purchase of shares of subsidiaries and associates
Other, net–494

(147)
(22)

Net cash provided by (used in) investing activities(13,580)(5,077)

Interest expenses
Share of loss (profit) of entities accounted for using equity
methodLoss (gain) on sales of investment securities

Increase (decrease) in operating debt
Decrease (increase) in inventories
Increase (decrease) in provision for warranties for completed
construction

Interest and dividend income received
Interest expenses paid

Cash flows from investing activities

9(Millions of yen)

Cash flows from financing activities
Net increase (decrease) in short-term loans payable

Fiscal year ended

Fiscal year ended

March 31, 2017

March 31, 2018
(660)

96

Proceeds from long-term loans payable
Repayments of long-term loans payable

2,308
(320)

4,500
(4,215)

Cash dividends paid
Purchase of treasury shares(1,837)(5)(2,204)
(2)

(673)
(16)

(621)
(9)

(1,203)(2,457)

Repayments of finance lease obligations
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

(26)

30

Net increase (decrease) in cash and cash equivalents(2,787)

19,208Cash and cash equivalents at beginning of period

61,45858,671

Cash and cash equivalents at end of period

58,671

77,87910