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, 2019
(Based on Japanese GAAP)May 13, 2019
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

Department
Scheduled date of ordinary general meeting of shareholders:Naotaka Miyauchi
Atsuya Hodota

TEL03-5745-2001

June 21, 2019

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

June 25, 2019
June 24, 2019

Preparation of supplementary material on financial results:
Holding of financial results meeting:NoYes(for analysts and institutional investors)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2019 (from April 1, 2018 to March 31, 2019)(1) Consolidated operating results
Net salesYear ended March 31, 2019Year ended March 31, 2018

Operating profit

Millions of yen
220,153
211,700%
4.00.3

Millions of yen
24,29020,578

Earnings per share

Diluted earnings pershare

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen
%
%%
–
16.3
9.3
11.0
–
9.6
7.7
9.7

Yen
271.69145.77

Year ended March 31, 2019Year ended March 31, 2018

%
18.0
79.3

Percentages indicate year-on-year changes
Profit attributable toOrdinary profit
owners of parent
Millions of yen% Millions of yen%27,925
26.3
19,966
86.4
22,117
82.6
10,712–(2) Consolidated financial position
Total assets
As of March 31, 2019
As of March 31, 2018

Net assets

Equity ratio

Millions of yen
305,471
297,365

Millions of yen
129,827
118,600

Cash flows fromoperating activities
Millions of yen
1,092
26,712

Cash flows frominvesting activities
Millions of yen(1,334)(5,077)

Net assets per share%
42.0
39.4

Yen
1,746.91
1,592.47(3) Consolidated cash flows

Year ended March 31, 2019Year ended March 31, 2018

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(3,758)73,820(2,457)
77,8792. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2018Year ended March 31, 2019Year ending March 31, 2020
(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%%

––

17.50
25.00

––

20.00
30.00

37.50
55.00

2,755
4,042

25.720.2

2.5
3.3

–

27.50

–

27.50

55.00

128.9

3. Forecast of consolidated financial results for the year ending March 31, 2020 (from April 1, 2019 to March 31, 2020)
Net sales
Millions of yen
Six months ending
September 30, 2019
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

112,500

2.6

9,500

(23.2)

10,500(23.3)

7,500(37.2)

102.05225,000

2.2

19,000(21.8)

20,000(28.4)

14,000(29.9)

190.504. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2019(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, 201974,309,108 shares As of March 31, 201874,292,607 shares

Number of treasury shares at the end of the period
As of March 31, 2019

803,082 shares As of March 31, 2018

802,503 shares

73,489,812 shares Year ended March 31, 2018

73,492,317 shares

Average number of shares during the period
Year ended March 31, 20192

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2018

As of March 31, 2019

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

79,03254,54274,30464,921

Merchandise and finished goods
Work in process

2,027
54,6632,767
61,004

Raw materials and supplies
Other

5,191
5,710

5,675
6,544

Allowance for doubtful accounts
Total current assets

(142)

(137)

201,024

215,080

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

15,40015,212

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

5,689
1,028

7,273
1,302

Land
Leased assets, net10,335
576

8,250
710

Construction in progress

288

1,764

33,31734,514

509
155

268
245

Other

1,109

1,712

Total intangible assets

1,774

2,226

34,670293

29,078
333

253

254

Retirement benefit asset
Deferred tax assets

2,736
20,2162,374
18,566

Other
Allowance for doubtful accounts

3,480(402)

3,439(397)

Total investments and other assets

61,24953,65096,341

90,391

297,365

305,471

Total property, plant and equipment
Intangible assets
Goodwill
Leased assets

Investments and other assets
Investment securities
Long-term loans receivableClaims provable in bankruptcy, claims provable inrehabilitation and otherTotal non-current assets
Total assets

3(Millions of yen)
As of March 31, 2018

As of March 31, 2019

Liabilities
Current liabilities
Notes and accounts payable - trade54,95755,579

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

12,004132

12,088
199

Lease obligations
Income taxes payable

493
2,296

496
3,326

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

18,86393

16,61993

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

1,729
784

441
301

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

3,365
6,389

1,887
5,295

Other

14,30816,140Total current liabilities

115,418

112,469

39,268748

39,208
796

100

90

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

7573

10,046

10,494Long-term guarantee deposited
Asset retirement obligations

11,504
1,364

10,721
1,308

Other

237

481

63,346

63,174

178,765

175,643

Capital stock
Capital surplus

19,694
5,467

19,716
5,362

Retained earnings
Treasury shares

86,256(2,310)102,915(2,312)

Total shareholders' equity

109,107

125,682

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

Accumulated other comprehensive incomeValuation difference on available-for-sale securities

7,269

3,290

Deferred gains or losses on hedges
Foreign currency translation adjustment

305
(21)

(226)
(222)

Remeasurements of defined benefit plans370

(115)

7,923

2,725

1,569

1,419

118,600

129,827

297,365

305,471

Total accumulated other comprehensive income
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, 2018

Fiscal year ended
March 31, 2019

Net sales

211,700

220,153

Cost of sales

162,995

166,622

Gross profit

48,70553,531

Direct selling expenses
Indirect selling, general and administrative expenses

7,807
20,318

8,453
20,787

Total selling, general and administrative expenses

28,12629,24020,57824,290Interest income
Dividend income

66761

52851

Cancellation fee received
Rent income on non-current assets

33851

1,186
786

Share of profit of entities accounted for using equity method
Miscellaneous income

–
1,418

89
1,234

Total non-operating income

3,130

4,201

Non-operating expenses
Interest expenses

258

246

Miscellaneous loss

1,333

319

Selling, general and administrative expenses

Operating profit
Non-operating income

Total non-operating expenses
Ordinary profit

1,592

565

22,11727,925

30
791

3,933
263

1113

824

4,309

29
273

32
228

1,352
6,389

1,623
711

5

322

Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Other
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
Other

8,049

2,918

Profit before income taxes

Total extraordinary losses

14,892

29,317

Income taxes - current
Income taxes - deferred

3,633
307

5,335
3,791

Total income taxes

3,940

9,127

Profit10,951

20,190

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

5238

223

10,712

19,966

Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2018

March 31, 2019
10,951

20,190

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

887
606

(3,978)(532)

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

203597

(232)
(478)

2,295

(5,221)

13,246

14,96812,937

14,768308

200

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, 2018
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

19,694Retained earnings

5,467

Total shareholders'equity

Treasury shares

77,748(2,308)100,601

Changes of items during periodDividends 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 securitiesDeferred gains
or losses onhedges

6,381

(301)

Foreigncurrencytranslation
adjustment(170)

Remeasurementsof defined
benefit plans(211)

Total accumulated
othercomprehensive
incomeNoncontrollinginterests

5,698

1,287

Total net
assets107,587

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

7

Fiscal year ended March 31, 2019
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

Retained earnings

19,694

5,467

22

22

Total shareholders'equityTreasury shares

86,256(2,310)109,107

Changes of items during period
Issuance of new shares

44

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

Profit attributable to owners ofparent

19,966

19,966Purchase of shares of
consolidated subsidiaries

(127)

(127)

Purchase of treasury shares

(1)

(1)

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

22

(104)

16,659(1)

16,575

19,716

5,362

102,915(2,312)

125,682

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference 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 of items during period
Issuance of new shares

44

Dividends of surplus(3,307)

Profit attributable to owners ofparent

19,966

Purchase of shares of
consolidated subsidiaries(127)

Purchase of treasury shares(1)

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

(532)

(200)

(486)

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

Total changes of items during
period(3,978)

(532)

(200)

(486)

(5,197)(150)

11,227

Balance at end of current period

3,290(226)

(222)

(115)

2,725

1,419

129,8278

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2018

March 31, 201914,892

29,317

Depreciation
Amortization of goodwill

4,097
211

4,424
215

Impairment loss
Interest and dividend income

1,352(827)

1,623(903)

258

246

0(89)

251

Interest expenses
Share of loss (profit) of entities accounted for using equity
methodLoss (gain) on valuation of short-term and long-terminvestment securities
Loss (gain) on sales of investment securities

(789)

(263)

Loss on retirement of property, plant and equipment andintangible assets

273

228

Loss (gain) on sales of property, plant and equipment
Decrease (increase) in operating receivables(1)(2,848)(3,900)(13,217)

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

6,101
3,994

(1,155)(7,618)

Increase (decrease) in provision for warranties for completed
construction(1,027)(1,409)

Increase (decrease) in provision for loss on construction
contracts(2,184)(553)

Increase (decrease) in provision for loss on wind power
generator business(1,289)(1,478)

Increase (decrease) in business restructuring reserve
Other, net

6,389
(252)

(1,093)376

Subtotal

28,351

4,797

827
(257)

893
(265)

Income taxes (paid) refund(2,207)(4,334)

Net cash provided by (used in) operating activities

26,712

1,092

(607)
657

(56)
544

Purchase of property, plant and equipment and intangible
assets(6,549)(7,347)

Proceeds from sales of property, plant and equipment andintangible assets

76

6,057

Purchase of investment securities
Proceeds from sales of investment securities

(12)
1,869

(43)
272

Repayments of long-term guarantee deposits
Payments of long-term loans receivable

(89)
(300)

(177)
(50)

Collection of long-term loans receivable
Purchase of shares of subsidiaries and associates

50
(147)

10(497)

Payments for asset retirement obligations
Other, net

(15)
(8)

(71)
25(5,077)(1,334)

Interest and dividend income received
Interest expenses paid

Cash flows from investing activities
Payments into time depositsProceeds from withdrawal of time deposits

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, 2018

March 31, 2019
96

83

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

4,500(4,215)250(242)

Cash dividends paid
Purchase of treasury shares(2,204)(2)(3,307)
(1)

(621)
(9)

(550)
9(2,457)(3,758)

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

30(58)Net increase (decrease) in cash and cash equivalents

19,208(4,059)Cash and cash equivalents at beginning of period

58,671

77,879Cash and cash equivalents at end of period

77,87973,82010