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, 2017
(Based on Japanese GAAP)May 15, 2017
Company name:

The Japan Steel Works, Ltd.

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

URL

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

Representative Director & President
General Manager

General Affairs Department
Scheduled date of ordinary general meeting of shareholders:Naotaka Miyauchi
Hiroki Kikuchi

TEL03-5745-2001

June 27, 2017

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

June 29, 2017
June 28, 2017

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

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, 2017 (from April 1, 2016 to March 31, 2017)(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%
(4.9)
12,340(14.4)
12,111(14.3)(4,968)–14.7
14,42391.9
14,125
53.2(16,600)–

Net salesYear ended March 31, 2017
Year ended March 31, 2016

Millions of yen
212,469
223,301

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%–(4.6)
4.3
5.8–(13.5)
4.6
6.5

Diluted earnings pershare

Earnings per shareYen(67.61)(226.62)

Year ended March 31, 2017
Year ended March 31, 2016
(2) Consolidated financial position

Total assets
As of March 31, 2017
As of March 31, 2016

Net assets

Equity ratio

Millions of yen
275,315
293,138

Millions of yen
107,587
111,340

Cash flows fromoperating activities
Millions of yen
12,023
19,721

Cash flows frominvesting activities
Millions of yen(13,580)(12,135)

Net assets per share%
38.6
37.5

Yen
1,446.44
1,497.04(3) Consolidated cash flows

Year ended March 31, 2017
Year ended March 31, 2016

Cash flows from
Cash and cash equivalentsat end of period
financing activities
Millions of yen
Millions of yen(1,203)58,671
4,788
61,458

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

Year ended March 31, 2016
Year ended March 31, 2017
Year ending March 31, 2018
(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
2.50

––

2.50
12.50

5.00
–

1,831
1,837––

1.5
1.7

–

12.50

–

12.50

25.00

123.0

3. Forecast of consolidated financial results for the year ending March 31, 2018 (from April 1, 2017 to March 31, 2018)
Net sales
Millions of yen
Six months ending
September 30, 2017
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

105,000(1.9)

6,500(11.5)

6,500(11.8)

4,000(21.7)

52.82

205,000(3.5)

12,5001.3

12,5003.28,000–

108.85

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2017(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, 201774,292,607 shares As of March 31, 2016

74,292,607 shares

Number of treasury shares at the end of the period
As of March 31, 2017

801,480 shares As of March 31, 2016

799,103 shares

73,492,317 shares Year ended March 31, 2016

73,254,540 shares

Average number of shares during the period
Year ended March 31, 20172

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2016

As of March 31, 2017

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

62,01852,73859,80149,420

Merchandise and finished goods
Work in process

1,987
58,8782,358
58,037

Raw materials and supplies
Deferred tax assets

6,328
7,120

5,755
6,473

Other
Allowance for doubtful accounts

6,750
(248)

4,858
(140)

195,574

186,565

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

23,1809,719

15,491
5,600

Tools, furniture and fixtures, net
Land

915
10,334588
9,721

Leased assets, net
Construction in progress

1,034
3,530

595
235Total property, plant and equipment

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

48,71532,233

Intangible assets
Goodwill

912

657

Leased assets
Other

179
584

193
803

Total intangible assets

1,676

1,655

Investments and other assets
Investment securities

30,33834,33963

53

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

405

292

1,872

2,472

Deferred tax assets
Other

12,1572,906

15,041
3,116

Allowance for doubtful accounts

(573)

(455)

Total investments and other assets

47,171

54,86097,56388,749293,138

275,315

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2016

As of March 31, 2017

Liabilities
Current liabilities
Notes and accounts payable - trade

53,83547,744

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

12,569320

11,9084,215

Lease obligations
Income taxes payable

620
1,456

574
866

Advances received
Provision for directors' bonuses

18,98435

17,004
37

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

2,039
1,269

2,757
2,969

Provision for loss on wind power generator business
Other

8,687
18,656

4,655
15,657

Total current liabilities

118,475

108,390

Non-current liabilities
Long-term loans payable

36,80734,901

Lease obligations
Deferred tax liabilities

1,023
230

854
175

Provision for directors' retirement benefits
Net defined benefit liability

108
11,315115
10,620Long-term guarantee deposited
Asset retirement obligations

12,405
1,307

11,0991,320123251

Other
Total non-current liabilities

63,322

59,337

181,797

167,727

Capital stock
Capital surplus

19,694
5,467

19,694
5,467

Retained earnings
Treasury shares

84,554(2,302)77,748(2,308)

Total shareholders' equity

107,413

100,601

3,830

6,381

Deferred gains or losses on hedges
Foreign currency translation adjustment

337
51(301)(170)

Remeasurements of defined benefit plans(1,609)(211)

Total accumulated other comprehensive income

2,609

5,698

1,318

1,287

111,340

107,587

293,138

275,315

Total liabilities
Net assets
Shareholders' equity

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

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, 2016

Fiscal year ended
March 31, 2017

Net sales

223,301

212,469

Cost of sales

179,197

170,695

Gross profit

44,103

41,773

Direct selling expenses
Indirect selling, general and administrative expenses

10,21819,461

9,645
19,787

Total selling, general and administrative expenses

29,68029,432

14,423

12,340Interest income
Dividend income

76695

49603

Miscellaneous income

718

656

1,490

1,309

345
0273
0

Miscellaneous loss

1,443

1,265

Total non-operating expenses

1,788

1,539

14,125

12,111

117
126

93
–0–

244

93

Loss on sales of non-current assets
Loss on retirement of non-current assets

4892

15150

Impairment loss
Loss on sales of investment securities

35,44772

17,874–2

5

Selling, general and administrative expenses

Operating profit
Non-operating income

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

Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Other
Total extraordinary income
Extraordinary losses

Other

36,41918,045

Loss before income taxes

Total extraordinary losses(22,049)(5,841)

Income taxes - current
Income taxes - deferred

3,357(8,996)

2,819(3,706)

Total income taxes(5,639)(887)

Loss(16,409)(4,954)191

14(16,600)(4,968)

Profit attributable to non-controlling interestsLoss 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, 2016

March 31, 2017(16,409)(4,954)

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges(5,364)
531

2,551
(638)

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax(229)(1,231)

(251)
1,398

Total other comprehensive income(6,294)

3,059(22,703)(1,894)(22,831)(1,879)127(14)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, 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

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

4545

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)

–

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

Total net
assets138,234

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

Loss attributable to owners ofparent(16,600)

Purchase of shares of
consolidated subsidiaries

45

Purchase of treasury shares(2,940)

Disposal of treasury shares

842

Transfer of loss on disposal oftreasury shares–

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)

2,609

1,318

111,340

7

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 periodDividends of surplus(1,837)(1,837)

Loss attributable to owners ofparent(4,968)(4,968)Purchase of shares of
consolidated subsidiaries–

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 gains
or losses onhedges3,830

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)

Loss attributable to owners ofparent(4,968)

Purchase of shares of
consolidated subsidiaries–

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
period

2,551

(638)

(222)

1,398

3,089

(31)

(3,753)

Balance at end of current period

6,381

(301)

(170)

(211)

5,698

1,287

107,5878

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, 2016

March 31, 2017(22,049)(5,841)

Depreciation
Amortization of goodwill

10,669
174

7,858
199

Impairment loss
Interest and dividend income

35,447(772)

17,874(653)

345

273

00(54)–

892

150(112)(78)

Interest expenses
Share of (profit) loss of entities accounted for using equity
methodLoss (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
Increase (decrease) in provision for loss on wind power
generator business
Decrease (increase) in operating receivables(4,515)(4,032)(11,637)(122)

Increase (decrease) in operating debt
Decrease (increase) in inventories

11,5572,363(2,987)
1,022

Other, net

122

1,393

Subtotal

22,431

15,056

Interest and dividend income received

771

660

Interest expenses paid
Income taxes (paid) refund(336)(3,144)(273)(3,420)Net cash provided by (used in) operating activities

19,721

12,023(964)(1,001)757

545(9,976)(13,348)

322

131

(11)

(345)

839
(378)

0(67)

0
14

0
10(2,293)–(531)
87–494(12,135)(13,580)

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
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
Payments for transfer of business
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 loans payable

Fiscal year ended

Fiscal year ended

March 31, 2016

March 31, 2017
313

(660)

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

30,900(11,105)

2,308
(320)

Redemption of bonds
Cash dividends paid

(10,000)(1,653)–(1,837)Purchase of treasury shares
Repayments of finance lease obligations(2,940)
(724)

(5)
(673)

Other, net

(1)

(16)

Net cash provided by (used in) financing activities

4,788(1,203)

Effect of exchange rate change on cash and cash equivalents

(68)

(26)

Net increase (decrease) in cash and cash equivalents

12,306(2,787)

Cash and cash equivalents at beginning of period

49,15261,458Cash and cash equivalents at end of period

61,45858,67110