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, 2021
(Based on Japanese GAAP)May 10, 2021
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, 2021

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

June 21, 2021
June 22, 2021

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, 2021 (from April 1, 2020 to March 31, 2021)(1) Consolidated operating resultsPercentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
(9.0)
10,226(45.3)
10,724(46.1)
6,893(26.0)(1.2)
18,709(23.0)
19,907(28.7)
9,310(53.4)Net salesYear ended March 31, 2021
Year ended March 31, 2020

Millions of yen
198,041
217,527

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%–5.1
3.5
5.2
–
7.2
6.6
8.6

Diluted earnings pershare

Earnings per share
Yen
93.76
126.66

Year ended March 31, 2021
Year ended March 31, 2020
(2) Consolidated financial position

Total assets
As of March 31, 2021
As of March 31, 2020

Net assets

Equity ratio

Millions of yen
316,249
297,173

Millions of yen
141,985
132,492

Cash flows fromoperating activities
Millions of yen
14,712
18,959Cash flows frominvesting activities
Millions of yen(3,243)(13,172)

Net assets per share
%
44.4
44.0

Yen
1,908.76
1,778.94(3) Consolidated cash flows

Year ended March 31, 2021
Year ended March 31, 2020

Cash flows fromCash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
2,767
88,759(6,164)74,477

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

Year ended March 31, 2020
Year ended March 31, 2021
Year ending March 31, 2022
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

TotalYen

Yen

Yen

Yen

Yen

Millions of yen%%––

27.50
17.50

––17.50
17.50

45.00
35.00

3,308
2,574

35.5
37.3

2.6
1.9

–

22.50

–

22.50

45.00

130.1

3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
Percentages indicate year-on-year changes
Net sales% Millions of yen
14.1
16,000Ordinary profit

Profit% Millions of yen
56.5
16,000% Millions of yen
49.2
11,000(1) Changes in significant subsidiaries during the year ended March 31, 2021
(changes in specified subsidiaries resulting in the change in scope of consolidation):

Yes

Full year

Millions of yen
226,000

Operating profit

Earnings per share%
59.6

Yen
149.604. Notes(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, 2021

74,359,182 shares As of March 31, 2020

74,332,356 shares

Number of treasury shares at the end of the period
As of March 31, 2021

803,655 shares As of March 31, 2020

803,339 shares

73,528,887 shares Year ended March 31, 2020

73,505,949 shares

Average number of shares during the period
Year ended March 31, 20212

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

As of March 31, 2021

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade75,52551,297

89,44156,806Merchandise and finished goods
Work in process

3,792
62,9272,550
57,019Raw materials and supplies
Other

5,643
11,485

6,126
10,889Allowance for doubtful accounts
Total current assets

(156)

(190)

210,515

222,643

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

18,90923,045

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

7,556
1,531

9,167
1,463

Land
Leased assets, net

7,984
766

7,987
886

Construction in progress

2,397

3,652

Total property, plant and equipment

39,146

46,201

782
180

573
119

Other

2,005

1,683

Total intangible assets

2,968

2,376

Investment securities
Long-term loans receivable

21,295323

24,950313

Distressed receivables
Retirement benefit asset

304
1,588

209
2,807

Deferred tax assets
Other

18,2903,178

13,685
3,395

Intangible assets
Goodwill
Leased assets

Investments and other assets

Allowance for doubtful accounts

(438)

(333)

Total investments and other assets

44,54245,027

Total non-current assets
Total assets

386,657

93,606297,173

316,249

(Millions of yen)As of March 31, 2020

As of March 31, 2021

Liabilities
Current liabilities
Notes and accounts payable - trade

48,40950,524

Short-term borrowings
Current portion of long-term borrowings

10,048
5,155

10,147
1,950

Lease obligations
Income taxes payable

434
1,143

386
2,484

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

19,012
77

17,928
67

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

193557153479Provision for loss on wind power generator business
Provision for business restructuring1,421
5,596

1,421
2,482

Other

13,425

17,522

Total current liabilities

105,475

105,548

35,691734

44,781
775

371

362

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

57

46

11,172

12,404Long-term guarantee deposits
Asset retirement obligations

9,255
1,329

8,442
1,352

Other

593

549

59,20568,715

164,680

174,263

Share capital
Capital surplus

19,737
5,383

19,7585,490

Retained earningsTreasury shares

108,454(2,312)

112,784(2,313)

Total shareholders' equity

131,262

135,719

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

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

1,017

4,962

Deferred gains or losses on hedges
Foreign currency translation adjustment

(69)
(356)

(286)
(458)

Remeasurements of defined benefit plans(1,049)461

Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

4(458)

4,679

1,688

1,586

132,492

141,985

297,173

316,249

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Net sales

217,527

198,041

Cost of sales

167,251

155,758

Gross profit

50,27542,283

Direct selling expenses
Indirect selling, general and administrative expenses

9,332
22,234

9,345
22,710Total selling, general and administrative expenses

31,56632,056

18,70910,226

Interest income
Dividend income

71775

28511

Gain on adjustment of insurance
Gain on non-current assets rent

409
757

178
501

Miscellaneous income

552

437

2,565

1,657

Interest expenses
Expenses for delayed delivery

249
178

275
471

Share of loss of entities accounted for using equity method
Miscellaneous losses

3935

27
386

1,367

1,160

Ordinary profit

19,907

10,724Extraordinary income
Gain on sale of non-current assets

1,296

7379
361

233
–

Selling, general and administrative expenses

Operating profit
Non-operating income

Total non-operating income
Non-operating expenses

Total non-operating expenses

Gain on sale of investment securities
Gain on bargain purchase
Gain on transfer from business divestitures

–

2,540

2,036

2,780

0483

1474

Provision for business restructuring provision
Loss on step acquisitions

2,244
95

–
–

Loss on sale of investment securities
Loss on valuation of investment securities

1,369
3,58969–

Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current assets

Other5–

7,789

545

Profit before income taxes

14,154

12,960

Income taxes - current
Income taxes - deferred

2,646
1,974

3,620
2,297

Total income taxes

4,620

5,917

Profit

9,534

7,042

223

148

9,310

6,893

Total extraordinary losses

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, 2020

March 31, 2021
9,534

7,042

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

3,945(216)Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

(122)
(927)

(115)
1,511

(3,166)

5,124

6,368

12,166

6,126

12,032

241

134

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, 2020
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

Retained earnings

19,716

5,362

2020Total 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 ofconsolidation

0(0)

454

455

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

20

21

5,538

(0)

5,579

19,737

5,383

108,454(2,312)

131,262

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference onavailable-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

(133)

(933)

(3,184)269(2,914)

Total changes during period(2,273)157(133)(933)(3,184)

269

2,665

Balance at end of period

1,017(69)(356)(1,049)

(458)

1,688

132,492

7

Fiscal year ended March 31, 2021
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

Retained earnings

19,737

5,383

21

21

Total shareholders'equity

Treasury shares

108,454(2,312)

131,262

Changes during period
Issuance of new shares

42

Dividends of surplus(2,573)(2,573)

Profit attributable to owners ofparent6,893

6,893

Purchase of shares ofconsolidated subsidiaries

8585

Purchase of treasury shares(0)Change in scope ofconsolidation

(0)

1010

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

21106

4,330

(0)

4,457

19,758

5,490

112,784(2,313)

135,719

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedges

1,017

(69)

Foreigncurrencytranslation
adjustment(356)

Remeasurementsof definedbenefit plans(1,049)Total accumulated
othercomprehensive
incomeNoncontrollinginterests

(458)

1,688

Total net
assets132,492

Changes during period
Issuance of new shares

42

Dividends of surplus(2,573)

Profit attributable to owners ofparent

6,893

Purchase of shares ofconsolidated subsidiaries

85

Purchase of treasury shares(0)Change in scope ofconsolidation

10

Net changes in items otherthan shareholders' equity

3,945

(216)

(101)

1,511

5,138

(102)

5,035

Total changes during period

3,945

(216)

(101)

1,511

5,138

(102)

9,493

Balance at end of period

4,962(286)

(458)

461

4,679

1,586

141,9858

Consolidated statements of cash flows(Millions of yen)

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

Fiscal year endedFiscal year ended

March 31, 2020

March 31, 2021
14,1545,733
283(846)249

12,9606,040
207(540)275

327990

(163)

3,589

–

483
(1,295)(361)
95–
15,059(10,436)(1,865)
(484)
110

474
(6)
–
–
(2,540)(7,132)
2,014
6,570
(612)
(149)

(255)

(77)

(465)

–

300
131
(681)

(3,114)
2,239
(852)

Subtotal

24,493

15,618Interest and dividends received
Interest paid
Income taxes refund (paid)

843
(275)
(6,102)556(313)(1,149)Net cash provided by (used in) operating activities

18,95914,712(339)(12,824)1,650(2,016)1,763
10420(8,276)
11(14)
2,144
9240–(896)–(384)––(375)2,652(190)(13,172)(3,243)

Cash flows from investing activities
Decrease (increase) in time deposits
Purchase of non-current assets
Proceeds from sale of non-current assets
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from collection of long-term loans receivable
Proceeds from purchase of shares of subsidiaries resulting inchange in scope of consolidation
Purchase of shares of subsidiaries resulting in change in scopeof consolidation
Payments for investments in capital of subsidiaries andassociates
Proceeds from sale of businesses
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
Repayments of finance lease obligations
Proceeds from non-controlling shareholders with aconsolidated subsidiary establishment
Purchase of shares of subsidiaries not resulting in change inscope of consolidation
Other, net

Fiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021
(2,140)1,200(315)(4,227)(737)

99
11,040(5,155)(2,573)(490)

49––(28)

6(123)Net cash provided by (used in) financing activities(6,164)2,767

Effect of exchange rate change on cash and cash equivalents

(65)

(46)

Net increase (decrease) in cash and cash equivalents(443)

14,189Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from inclusion ofsubsidiaries in consolidation

73,82074,477

1,100

92

Cash and cash equivalents at end of period

74,47788,75910