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, 2016
(Based on Japanese GAAP)May 16, 2016
Company name:

The Japan Steel Works, Ltd.

Stock exchange listing: Tokyo, Nagoya
Stock code:
5631
URL
Representative:
Inquiries:

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

Representative Director & President
General Manager

General Affairs Department
Scheduled date of ordinary general meeting of shareholders:

Ikuo Sato
Hiroki Kikuchi

TEL03-5745-2001

June 24, 2016

Scheduled date to file Securities Report:
Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:
Holding of financial results meeting:June 24, 2016
June 27, 2016
Yes
Yes

(for analysts and institutional investors)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2016 (from April 1, 2015 to March 31, 2016)(1) Consolidated operating results
Net salesYear ended March 31, 2016
Year ended March 31, 2015

Percentages indicate year-on-year changes
Profit attributable toOperating income
Ordinary income
owners of parent
Millions of yen% Millions of yen% Millions of yen%
14,42391.9
14,125
53.2(16,600)–
7,517 (15.2)
9,221
(5.0)
(5,327)–

Millions of yen
223,301
194,674

%
14.7
3.2

Earnings per share

Diluted earnings pershare

Profit attributable toOrdinary
owners ofincome/total assets
parent/equity
Yen%%–(13.5)
4.6–
(3.9)
3.0Yen(45.32)(14.39)Year ended March 31, 2016
Year ended March 31, 2015

Operatingincome/net sales
%
6.5
3.9

(2) Consolidated financial position
Total assets
As of March 31, 2016
As of March 31, 2015

Net assets

Equity ratio

Millions of yen
293,138
319,667

Millions of yen
111,340
138,234

Cash flows fromoperating activities
Millions of yen
19,721
11,580Cash flows frominvesting activities
Millions of yen(12,135)(2,675)

Net assets per share%
37.5
42.7

Yen
299.41368.81(3) Consolidated cash flows

Year ended March 31, 2016
Year ended March 31, 2015

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
4,788
61,458(2,964)
49,152

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

Year ended March 31, 2015
Year ended March 31, 2016
Year ending March 31, 2017
(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%%

––

2.00
2.50

––

2.00
2.50

4.00
5.00

1,481
1,831

––

1.1
1.5–

2.50

–

2.50

5.00

122.9

3. Forecast of consolidated financial results for the year ending March 31, 2017 (from April 1, 2016 to March 31, 2017)
Net sales
Millions of yen
Six months ending
September 30, 2016
Full year

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

110,000

16.2

5,000(0.3)

5,000(6.0)

3,000(5.2)

8.19

220,000(1.5)

12,000(16.8)

12,000(15.0)

8,000–

21.84

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2016(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:
Yes
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, 2016

371,463,036 shares As of March 31, 2015

371,463,036 shares

Number of treasury shares at the end of the period
As of March 31, 2016

3,995,515 shares As of March 31, 2015

1,192,297 shares

366,272,697 shares Year ended March 31, 2015

370,272,269 shares

Average number of shares during the period
Year ended March 31, 20162

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2015

As of March 31, 2016

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade49,17656,67862,01852,738Merchandise and finished goods
Work in process

2,103
60,988

1,987
58,878Raw materials and supplies
Deferred tax assets

5,234
9,235

6,328
7,120

Other
Allowance for doubtful accounts

7,716
(157)

6,750(248)

190,976

195,574

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

45,086
21,852

23,1809,719

Tools, furniture and fixtures, net
Land

1,391
10,897915
10,334

Leased assets, net
Construction in progress1,344
1,404

1,034
3,530

Total property, plant and equipment

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

81,97848,715Intangible assets
Goodwill

0912

Leased assets
Other

194
515

179
584

Total intangible assets

710

1,676

Investments and other assets
Investment securities

39,13130,33874

63

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

410

405

3,063

1,872

Deferred tax assets
Other

1,002
2,907

12,157
2,906

Allowance for doubtful accounts

(588)

(573)

Total investments and other assets
Total non-current assets
Total assets

346,00247,171

128,691

97,563319,667

293,138(Millions of yen)
As of March 31, 2015

As of March 31, 2016

Liabilities
Current liabilities
Notes and accounts payable - trade42,41853,835

Short-term loans payable
Current portion of long-term loans payable

12,255
11,105

12,569320

Current portion of bonds
Lease obligations

10,000663–620

Income taxes payable
Advances received

1,171
34,697

1,456
18,984

Provision for directors' bonuses
Provision for warranties for completed construction

36
2,035

35
2,039

Provision for loss on construction contracts
Provision for loss on wind power generator business

1,485
13,203

1,269
8,687

Other

16,447

18,656

Total current liabilities

145,520

118,475

Long-term loans payable
Lease obligations

6,227
1,094

36,807
1,023

Deferred tax liabilities
Provision for directors' retirement benefits

3,064
109

230
108

Net defined benefit liability
Long-term guarantee deposited

10,857
12,924

11,315
12,405

Asset retirement obligations
Other

1,295
3391,307
123

Total non-current liabilities

35,912

63,322

181,432

181,797

Shareholders' equity
Capital stock

19,694

19,694

Capital surplus
Retained earnings

5,425
103,330

5,467
84,554(731)(2,302)

127,718

107,413

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

9,195
(194)

3,830
337

Foreign currency translation adjustment
Remeasurements of defined benefit plans

239
(399)

51
(1,609)Total accumulated other comprehensive income

8,839

2,609

Non-current liabilities

Total liabilities
Net assetsTreasury shares
Total shareholders' equity
Accumulated other comprehensive income

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

41,676

1,318

138,234

111,340

319,667

293,138

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2015

Fiscal year ended
March 31, 2016

Net sales

194,674

223,301

Cost of sales

159,188

179,197

Gross profit

35,48644,103

Direct selling expenses
Indirect selling, general and administrative expenses

9,273
18,69510,218
19,461

Total selling, general and administrative expenses

27,96929,6807,517

14,423

56
661

76695

Miscellaneous income

2,130718

Total non-operating income

2,848

1,490

264
0345
0

Selling, general and administrative expenses

Operating income
Non-operating income
Interest income
Dividend income

Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Miscellaneous loss

880

1,443

1,144

1,788

9,221

14,125

–
2,214

117
126

Gain on bargain purchase
Other

218
6–0

Total extraordinary income

2,439

244Extraordinary losses
Loss on retirement of non-current assets

343

892

Impairment loss
Loss on sales of investment securities

805–

35,447
72

Loss on valuation of shares of subsidiaries and associates
Loss on business of subsidiaries and associates

55
6–
–

Provision for loss on wind power generator business
Other

15,967
6–
6

Total extraordinary losses

17,18436,419Loss before income taxes(5,523)(22,049)

Income taxes - current

3,534

3,357

Income taxes - deferred(3,945)(8,996)(411)(5,639)(5,112)(16,409)215

191(5,327)(16,600)

Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities

Total income taxes
Loss
Profit attributable to non-controlling interests
Loss attributable to owners of parent

5Consolidated statements of comprehensive income(Millions of yen)

Loss
Other comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2015

March 31, 2016
(5,112)(16,409)

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

4,902
(64)

(5,364)531

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

358
617

(229)
(1,231)

5,814(6,294)

701(22,703)487(22,831)213

127

Total other comprehensive income
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, 2015
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

19,694Retained earnings

5,425

110,635

Cumulative effects of changes
in accounting policies

Total shareholders'equityTreasury shares(730)

135,026(555)

Restated balance

19,694

5,425

(555)

110,080(730)

134,471

Changes of items during period
Dividends of surplus(1,666)(1,666)

Loss attributable to owners ofparent(5,327)(5,327)Purchase of shares of
consolidated subsidiaries–

Purchase of treasury shares
Disposal of treasury shares

(0)

(1)

(1)

00

Transfer of loss on disposal oftreasury shares–

Change of scope ofconsolidation

242

242

Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current period–(0)(6,750)(1)(6,752)

19,694

5,425

103,330(731)

127,718

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-forsale securities

Deferred gains
or losses onhedges

4,293

(130)

Foreigncurrencytranslation
adjustment(96)

Remeasurementsof defined
benefit plans(1,042)

Total accumulated
othercomprehensive
incomeNoncontrollinginterests

3,0241,218

Cumulative effects of changes
in accounting policies
Restated balance

Total net
assets139,268
(555)

4,293

(130)

(96)

(1,042)

3,024

1,218

138,713

Changes of items during period
Dividends of surplus(1,666)

Loss attributable to owners ofparent(5,327)Purchase of shares of
consolidated subsidiaries–

Purchase of treasury shares(1)

Disposal of treasury shares

0

Transfer of loss on disposal oftreasury shares–

Change of scope of
consolidation

242

Net changes of items otherthan shareholders' equity

4,902

(64)

3356425,815

457

6,273

Total changes of items during
period

4,902

(64)

335

642

5,815

457

(478)

Balance at end of current period

9,195

(194)

239(399)

8,839

1,676

138,234

7Fiscal year ended March 31, 2016
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

19,694Retained earnings

5,425

Treasury shares

103,330

Total shareholders'equity(731)

127,718

Cumulative effects of changes
in accounting policies–

Restated balance

19,694

5,425

103,330(731)

127,718

Changes of items during period
Dividends of surplus(1,653)(1,653)

Loss attributable to owners ofparent(16,600)(16,600)

Purchase of shares ofconsolidated subsidiaries

45

45

Purchase of treasury shares
Disposal of treasury shares(525)

Transfer of loss on disposal oftreasury shares

521(2,940)(2,940)

1,368

842

(521)

–

Change of scope ofconsolidation–

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

41(18,775)(1,571)(20,305)

19,694

5,467

84,554(2,302)

107,413

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-forsale securities

Deferred gains
or losses onhedges

9,195

(194)

Foreigncurrencytranslation
adjustment
239

Remeasurementsof defined
benefit plans(399)

Total accumulated
othercomprehensive
incomeNoncontrollinginterests

8,839

1,676

Cumulative effects of changes
in accounting policies
Restated balance

Total net
assets138,234
–

9,195

(194)

239

(399)

8,839

1,676

138,234

Changes of items during period
Dividends of surplus(1,653)

Loss attributable to owners ofparent(16,600)

Purchase of shares ofconsolidated subsidiaries

45

Purchase of treasury shares(2,940)

Disposal of treasury shares

842

Transfer of loss on disposal oftreasury shares–

Change of scope ofconsolidation–

Net changes of items otherthan shareholders' equity(5,364)

531

(187)

(1,210)(6,230)(358)(6,588)

Total changes of items during
period(5,364)

531

(187)

(1,210)(6,230)(358)(26,894)

Balance at end of current period

3,830

337

51

(1,609)2,6091,318

111,3408Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Loss before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2015

March 31, 2016
(5,523)(22,049)

11,008(71)

10,669174

Impairment loss
Interest and dividend income

805
(718)

35,447(772)

Interest expenses
Share of (profit) loss of entities accounted for using equity

264

345

00(2,214)

(54)

(218)

–343

892

Depreciation
Amortization of goodwill

methodLoss (gain) on sales of investment securities
Gain on bargain purchaseLoss on retirement of property, plant and equipment andintangible assets
Loss (gain) on sales of property, plant and equipment

(6)

(112)

55

–

13,203(4,515)

3,834(11,637)

Increase (decrease) in operating debt
Decrease (increase) in inventories(151)(2,714)

11,557
2,363

Other, net(2,569)122

Subtotal

15,32522,431712

771Interest expenses paid
Income taxes (paid) refund(255)(4,201)(336)(3,144)

Net cash provided by (used in) operating activities

11,58019,721

Loss on valuation of shares of subsidiaries and associates
Increase (decrease) in provision for loss on wind power
generator business
Decrease (increase) in operating receivables

Interest and dividend income received

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment and intangible
assetsProceeds from sales of property, plant and equipment andintangible assets
Purchase of investment securities

(6)

(964)

14757

(5,392)(9,976)

260

322

(11)

(11)

2,835
(192)

839
(378)

215
13

0
14–

(2,293)

Payments for transfer of business
Purchase of shares of subsidiaries and associates

(200)
(56)

(531)
–

Proceeds from sales of shares of subsidiaries and associates
Other, net

3
(159)

–
87

(2,675)(12,135)

Proceeds from sales of investment securities
Repayments of long-term guarantee deposits
Decrease (increase) in short-term loans receivableCollection of long-term loans receivable
Purchase of shares of subsidiaries resulting in change in scopeof consolidation

Net cash provided by (used in) investing activities

9(Millions of yen)

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

Fiscal year ended

Fiscal year ended

March 31, 2015

March 31, 2016
(37)

313

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

2,250(2,712)30,900(11,105)

Redemption of bonds
Cash dividends paid–
(1,668)(10,000)(1,653)(1)(803)(2,940)(724)

Purchase of treasury shares
Repayments of finance lease obligations
Other, net

8(1)Net cash provided by (used in) financing activities(2,964)4,788

Effect of exchange rate change on cash and cash equivalents

415(68)Net increase (decrease) in cash and cash equivalents

6,356

12,306

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents from newly consolidated

42,29749,152

498–49,152

61,458subsidiary
Cash and cash equivalents at end of period10