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, 2020
(Based on Japanese GAAP)May 25, 2020
Company name:

The Japan Steel Works, Ltd.

Stock exchange listing: Tokyo
Stock code:
5631
Representative:
Inquiries:

URL

https://www.jsw.co.jp/

Representative Director & President
General Manager, General Affairs

Naotaka Miyauchi
Atsuya Hodota

Department
Scheduled date of ordinary general meeting of shareholders:

TEL03-5745-2001

June 24, 2020

Scheduled date to file Securities Report:
Scheduled date to commence dividend payments:

June 30, 2020
June 25, 2020

Preparation of supplementary material on financial results:
Holding of financial results meeting:

NoNo(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)(1) Consolidated operating results

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
(1.2)
18,709(23.0)
19,907(28.7)
9,310(53.4)
4.0
24,29018.0
27,925
26.3
19,966
86.4

Net salesYear ended March 31, 2020
Year ended March 31, 2019

Millions of yen
217,527
220,153

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
–
7.2
6.6
8.6
–
16.3
9.3
11.0

Diluted earnings pershare

Earnings per share
Yen
126.66271.69Year ended March 31, 2020
Year ended March 31, 2019(2) Consolidated financial position

Total assets
As of March 31, 2020
As of March 31, 2019

Net assets

Equity ratio

Millions of yen
297,173
305,471

Millions of yen
132,492
129,827

Cash flows fromoperating activities
Millions of yen
18,959
1,092

Cash flows frominvesting activities
Millions of yen(13,172)(1,334)

Net assets per share%
44.0
42.0

Yen
1,778.94
1,746.91(3) Consolidated cash flows

Year ended March 31, 2020
Year ended March 31, 2019

Cash flows from
Cash and cash equivalents
at end of periodfinancing activities
Millions of yen
Millions of yen(6,164)74,477(3,758)73,8202. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2019Year ended March 31, 2020
Year ending March 31, 2021
(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%

%

––

25.00
27.50

––

30.00
17.50

55.00
45.00

4,042
3,308

20.2
35.53.3
2.6–––––

1–

3. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2020(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:
Changes in accounting policies due to other reasons:

NoNo

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(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, 2020

74,332,356 shares As of March 31, 201974,309,108 shares

Number of treasury shares at the end of the period
As of March 31, 2020

803,339 shares As of March 31, 2019

803,082 shares

73,505,949 shares Year ended March 31, 201973,489,812 shares

Average number of shares during the period
Year ended March 31, 20202

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2019As of March 31, 2020

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade74,30464,921

75,52551,297

Merchandise and finished goods
Work in process

2,767
61,004

3,792
62,927

Raw materials and supplies
Other

5,675
6,544

5,643
11,485

Allowance for doubtful accounts
Total current assets

(137)

(156)

215,080

210,515

Non-current assets
Property, plant and equipment
Buildings and structures, net

15,212

18,909Machinery, equipment and vehicles, net
Tools, furniture and fixtures, net

7,273
1,302

7,556
1,531

Land
Leased assets, net

8,250
710

7,984
766

Construction in progress

1,764

2,397

Total property, plant and equipment

34,514

39,146

268
245

782
180

Other

1,712

2,005

Total intangible assets

2,226

2,968

Investment securities
Long-term loans receivable

29,078333

21,295323

Distressed receivables
Retirement benefit asset

254
2,374

304
1,588

Deferred tax assets
Other

18,566
3,439

18,2903,178Intangible assets
Goodwill
Leased assets

Investments and other assets

Allowance for doubtful accounts

(397)

(438)

Total investments and other assets

53,65044,542Total non-current assets
Total assets

390,391

86,657

305,471

297,173

(Millions of yen)
As of March 31, 2019

As of March 31, 2020

Liabilities
Current liabilities
Notes and accounts payable - trade55,57948,409

Short-term borrowings
Current portion of long-term borrowings

12,088199

10,0485,155

Lease obligations
Income taxes payable

496
3,326

434
1,143

Advances received
Provision for bonuses for directors (and other officers)

16,61993

19,012
77

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

441301

193
557

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

1,887
5,295

1,421
5,596

Other

16,14013,425

Total current liabilities

112,469

105,475

39,208796

35,691
734

90

371

Non-current liabilities
Long-term borrowings
Lease obligations
Deferred tax liabilities
Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability

73

57

10,494

11,172Long-term guarantee deposits
Asset retirement obligations

10,721
1,308

9,255
1,329

Other

481

593

63,17459,205

175,643164,680

Share capital
Capital surplus

19,716
5,362

19,737
5,383

Retained earnings
Treasury shares

102,915(2,312)

108,454(2,312)

Total shareholders' equity

125,682

131,262

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

3,290

1,017

Deferred gains or losses on hedges
Foreign currency translation adjustment

(226)
(222)

(69)
(356)

Remeasurements of defined benefit plans(115)(1,049)Total accumulated other comprehensive income

2,725(458)

1,419

1,688

129,827

132,492

305,471

297,173

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

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Net sales
Cost of sales

220,153
166,622217,527
167,251

Gross profit

53,53150,275

Selling, general and administrative expenses
Direct selling expenses
Indirect selling, general and administrative expenses

8,453
20,787

9,33222,234

Total selling, general and administrative expenses

29,24031,566

Operating profit

24,29018,709Non-operating income
Interest income
Dividend income
Gain on adjustment of insurance
Gain on non-current assets rent
Share of profit of entities accounted for using equity method
Miscellaneous income

52
851
109
786
89
2,310

71
775
409
757–
552

4,201

2,565

246–
172
28–
118

249
173
178
230
3532

Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Expenses for delayed delivery
Non-deductible consumption tax
Share of loss of entities accounted for using equity method
Miscellaneous loss

565

1,367

Ordinary profit

Total non-operating expenses

27,925

19,907Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on bargain purchase
Other

3,933
263
–
113

1,296
379
361
–

4,309

2,036

32
228
1,623
711–
–
51
271

0483
–
2,244
95
1,369
3,589
5

Total 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
Loss on step acquisitions
Loss on sales of investment securities
Loss on valuation of investment securities
Other

2,918

7,789

Profit before income taxes

Total extraordinary losses

29,317

14,154

Income taxes - current
Income taxes - deferred

5,335
3,791

2,646
1,974

Total income taxes

9,127

4,620

Profit20,190

9,534

223

223

19,966

9,310

Profit attributable to non-controlling interests
Profit attributable to owners of parent

5Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020
20,1909,534

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges(3,978)(532)(2,273)157

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

(232)
(478)

(122)
(927)

(5,221)(3,166)

14,9686,368

14,768

6,126

200

241

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, 2019
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

Retained earnings

19,694

5,467

2222

Total shareholders'equity

Treasury shares

86,256(2,310)109,107

Changes during period
Issuance of new shares

44

Dividends of surplus(3,307)(3,307)

Profit attributable to owners ofparent

19,966

19,966

Purchase of shares of
consolidated subsidiaries

(127)

(127)

Purchase of treasury shares

(1)

(1)

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period22(104)

16,659(1)

16,575

19,716

5,362

102,915(2,312)

125,682

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedges7,269

305

Foreigncurrencytranslation
adjustment(21)

Remeasurementsof defined
benefit plans

370

Total accumulated
othercomprehensive
incomeNoncontrollinginterests

7,923

1,569

Total net
assets118,600

Changes during period
Issuance of new shares

44

Dividends of surplus(3,307)

Profit attributable to owners ofparent19,966

Purchase of shares of
consolidated subsidiaries(127)

Purchase of treasury shares(1)

Net changes in items otherthan shareholders' equity(3,978)

(532)

(200)

(486)

(5,197)(150)(5,348)

Total changes during period(3,978)

(532)

(200)

(486)

(5,197)(150)

11,227

Balance at end of period

3,290

(226)

(222)

(115)

2,725

1,419

129,827

7

Fiscal year ended March 31, 2020
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

Retained earnings

19,716

5,362

20

20

Total shareholders'equityTreasury shares

102,915(2,312)

125,682

Changes during period
Issuance of new shares

41

Dividends of surplus(4,227)(4,227)

Profit attributable to owners ofparent

9,310

9,310

Purchase of treasury shares(0)Change in scope of
consolidation

(0)

0454

455

20

21

5,538(0)5,579

19,737

5,383

108,454(2,312)

131,262

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedges

3,290

(226)

Foreigncurrencytranslation
adjustment(222)

Remeasurementsof defined
benefit plans(115)

Total accumulated
othercomprehensive
incomeNoncontrollinginterests

2,725

1,419

Total net
assets129,827

Changes during period
Issuance of new shares

41

Dividends of surplus(4,227)

Profit attributable to owners ofparent

9,310

Purchase of treasury shares(0)Change in scope of
consolidation

455

Net changes in items otherthan shareholders' equity(2,273)

157

Total changes during period(2,273)

157

Balance at end of period

1,017

(69)

(133)

8(933)(3,184)269(2,914)

(133)

(933)

(3,184)269

2,665(356)(1,049)

(458)

1,688

132,492

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Impairment loss
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using equity
methodLoss (gain) on valuation of short-term and long-term
investment securities
Loss (gain) on sales of investment securities
Loss on retirement of property, plant and equipment andintangible assets
Loss (gain) on sales of property, plant and equipment
Decrease (increase) in trade receivables
Increase (decrease) in trade payables
Decrease (increase) in inventories
Decrease/increase in consumption taxes receivable/payable
Gain on bargain purchase
Loss (gain) on step acquisitions
Increase (decrease) in provision for loss on wind power
generator business
Increase (decrease) in business restructuring reserve
Other, net
Subtotal

Fiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020
29,317
4,424
215
1,623
(903)
246

14,154
5,733
283
–
(846)
249

(89)

351

3,589

(263)

990

228

483

(3,900)(13,217)(1,155)(7,618)(443)––(1,295)
15,059(10,436)(1,865)
(484)
(361)
95

(1,478)(465)(1,093)(1,143)
4,797

300
(695)
24,493

Interest and dividends received
Interest paid
Income taxes (paid) refund

893
(265)
(4,334)843(275)(6,102)

Net cash provided by (used in) operating activities

1,09218,959

(56)
544

(533)
193

(7,347)(12,824)

6,057

1,650

(43)
272
(177)
10(2,016)
1,763
(628)
10–

(384)

–

240

–

(896)

(497)
(97)
(1,334)–
253(13,172)

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
Proceeds from sales of investment securities
Refund of long-term guarantee deposits
Collection of long-term loans receivable
Payments for investments in capital of subsidiaries andassociates
Proceeds from purchase of shares of subsidiaries resulting inchange in scope of consolidation
Purchase of shares of subsidiaries resulting in change in scopeof consolidation
Purchase of shares of subsidiaries and associates
Other, net
Net cash provided by (used in) investing activities

9

(Millions of yen)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Dividends paid
Purchase of treasury shares
Repayments of finance lease obligations
Proceeds from non-controlling shareholders with aconsolidated subsidiary establishment
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

Fiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020
83
250
(242)
(3,307)(1)(550)(2,140)1,200(315)(4,227)
(0)
(737)

–49

9(3,758)

7(6,164)

(58)

(65)

Net increase (decrease) in cash and cash equivalents(4,059)(443)

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from inclusion ofsubsidiaries in consolidation
Cash and cash equivalents at end of period

77,87973,820–1,100

73,82074,477

10