November 4, 2021

Summary of the Consolidated Financial Results for the Second Quarterof the Fiscal Year Ending March 31, 2022 (FY3/22)(Six Months Ended September 30, 2021)[Japanese GAAP]
Company name:

Yodogawa Steel Works, Ltd.
Stock exchange listed: Tokyo, 1st Section
5451
URL: https://www.yodoko.co.jp/
Satoshi Nitta, President and Representative Director
Takayuki Deguchi, General Manager of IR Department
Tel: +(81)6-6245-1113
Scheduled date of filing of Quarterly Report:
November 10, 2021
Scheduled date of payment of dividend:
December 1, 2021
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results meeting:Yes (for analysts and institutional investors)
Stock code:
Representative:
Inquiries:(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Second Quarter (April 1, 2021 to September 30, 2021) of FY3/22(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales

Operating profit

Millions of yen

Six months ended Sep. 30, 2021
Six months ended Sep. 30, 2020

% Millions of yen

93,87367,468

Note: Comprehensive income (millions of yen):

39.1
-

85.3
-

7,136
4,209

Six months ended Sep. 30, 2021:
Six months ended Sep. 30, 2020:% Millions of yen

69.5
-

4,110
2,914

%

41.1
-

6,633 (down 22.5%)
8,561 (-%)

Diluted net income
per share

Net income per share
Six months ended Sep. 30, 2021
Six months ended Sep. 30, 2020

% Millions of yen

5,658
3,054

Profit attributable toowners of parent

Ordinary profit

Yen

Yen

142.7499.75

142.1499.31(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Shareholders’ equity ratio

Millions of yen%

As of Sep. 30, 2021
228,463
185,422226,004
180,296
As of Mar. 31, 2021
Reference: Shareholders’ equity (millions of yen): As of Sep. 30, 2021:
165,850

72.6
71.9
As of Mar. 31, 2021: 162,472

2. Dividends
1Q-endDividend per share
3Q-end2Q-endYear-end

Total

Yen

Yen

Yen

Yen

Yen

-

35.00
35.00

-

40.00

75.00

-

-

-

Fiscal year ended Mar. 31, 2021
Fiscal year ending Mar. 31, 2022
Fiscal year ending Mar. 31, 2022
(Forecast)

Note: Revisions to the most recently announced dividend forecast: None
There is currently no dividend forecast for the fiscal year ending March 31, 2022.

3. Consolidated Forecasts for FY3/22 (April 1, 2021 to March 31, 2022)
Net sales
Full year(Percentages represent year-on-year changes)
Profit attributable to
Net income
Ordinary profit
owners of parent
per share

Operating profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

%

Yen

-

-

-

-

-

-

-

-

-

Note: Revisions to the most recently announced consolidated earnings forecast: None
No full year forecast for the fiscal year ending March 31, 2022 is shown because of the difficulty of determining a reliable forecast for
the Yodogawa Steel Group’s results of operations. For further details, please refer to “1. Qualitative Information on Quarterly
Consolidated Financial Performance, (3) Explanation of Consolidated Forecast and Other Forward-looking Statements” on page 4.

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): None
(2) Application of special accounting methods for presenting quarterly consolidated financial statements: None
(3) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others: Yes
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: None
4) Restatements: None
Please refer to “2. Quarterly Consolidated Financial Statements and Notes, (3) Notes to Quarterly Consolidated Financial
Statements, Changes in Accounting Policies” on page 9 for further information.

(4) Number of outstanding shares (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
As of Sep. 30, 2021:

34,837,230 shares

As of Mar. 31, 2021:

34,837,230 shares

As of Mar. 31, 2021:

6,051,658 shares

Six months ended Sep. 30, 2020:

29,214,454 shares

2) Number of treasury shares at the end of the period
As of Sep. 30, 2021:

6,024,536 shares

3) Average number of shares outstanding during the period
Six months ended Sep. 30, 2021:

28,798,281 shares* The current quarterly financial report is not subject to quarterly review by certified public accountants or auditing firms.
* Cautionary statement with respect to forward-looking statements and other special items
Forecasts of future performance in these materials are based on assumptions judged to be valid and information available to t he
management of Yodogawa Steel Works at the time the materials were prepared. These materials are not promises by Yodogawa
Steel Works regarding future performance. Actual results may differ significantly from these forecasts for a number of reasons.
For a discussion of the assumptions for forecasts, precautions concerning usage and other informatio n, please refer to “1.
Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated Forecast and Other
Forward-looking Statements” on page 4.

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 2Q of FY3/22

Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Performance2(1) Explanation of Results of Operations

2(2) Explanation of Financial Position

3(3) Explanation of Consolidated Forecast and Other Forward-looking Statements

4

2. Quarterly Consolidated Financial Statements and Notes

5(1) Quarterly Consolidated Balance Sheet

5(2) Quarterly Consolidated Statements of Income and Comprehensive Income

7

Quarterly Consolidated Statement of Income
For the Six-month Period

7

Quarterly Consolidated Statement of Comprehensive Income
For the Six-month Period

8(3) Notes to Quarterly Consolidated Financial Statements

9

Going-concern Assumption

9

Significant Changes in Shareholders’ Equity

9

Notes to Quarterly Consolidated Balance Sheet

9

Changes in Accounting Policies

9

Segment and Other Information

10

1

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 2Q of FY3/22

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
During the first half of the fiscal year ending March 31, 2022, some sectors of the Japanese economy showedsigns of a recovery. However, Japan’s economy remained weak as the prospects for ending the pandemic(COVID-19) were uncertain.
In the global economy, the economies of some countries and regions are staging a recovery. The U.S . economy isrecovering on the back of a massive economic stimulus package while progress with vaccinations is supporting
the European economy. On the other hand, uncertainty about the future is increasing due to concerns about
resurgence of infections worldwide, including in the United States.
In the steel industry, there are signs of upturn in Japan. While construction starts are on the rise and machinery
exports are up, automobile production is sluggish due to shortages of semiconductors. As a result, the recovery is
still slow.
The overseas steel market has been unstable because of the prolonged U.S.-China trade friction, the adjustment of
crude steel production in China which have tightened the supply -demand balance, the global semiconductor
shortage and other factors.
The Yodogawa Steel Group’s net sales in the first half increased 26,404 million yen from the same period of theprevious fiscal year to 93,873 million yen. Operating profit increased 2,604 million yen to 5,658 million yen,ordinary profit increased 2,926 million yen to 7,136 million yen, and profit attributable to owners of parent
increased 1,196 million yen to 4,110 million yen.
In Japan, sales increased due to the recovery in sales of steel sheets, but earnings decreased because many
categories of expenses were higher.
Overseas, sales and earnings increased mainly because of improvements at Taiwan subsidiary Sheng Yu Steel Co.,
Ltd. (SYSCO), and the return to profitability of China subsidiary Yodogawa Shengyu (Hefei) High-Tech Steel Co.,
Ltd. (YSS) and Thai subsidiary PCM Processing (Thailand) Ltd. (PPT).
Business segment performance was as follows.
1) Steel Sheet-related BusinessNet sales totaled 89,809 million yen and operating profit was 5,530 million yen. Sales and earnings increased.
Steel Sheet
In Japan, monetary sales increased as sales volumes improved in all steel sheet categories because of solid
demand for building construction and other sources of strength. There were increases for both specifichigh-demand customers and general distribution. Although sales increased, earnings were down because many
categories of expenses were higher.
Overseas, SYSCO in Taiwan achieved a big improvement in earnings because of the growth of sales volumes in
Taiwan and of exports as well as improvements in selling prices. YSS , a subsidiary in China, became profitableprimarily due to the larger volume of sales of pre-painted and plated steel sheets in China. PPT, our Thai
subsidiary, reported a small operating profit although it continued to experience progress and setbacks .
Building Material & Exterior Products
In the building materials category, sales of exterior products were higher because of a high volume of sales ofstorage sheds, storage warehouses and garages. Sales of materials for building exteriors decreased because of achange in the method used to sell YODO Roof and other reasons. Construction sales were lower than one year
earlier partly because of the high number of the completion of large projects in the previous fiscal year.
2) Roll BusinessNet sales totaled 1,168 million yen and operating profit was 40 million yen.

2

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 2Q of FY3/22

Sales were down because of declines in the sales volume of rolls used in the steel and paper industries but
earnings improved.
3) Grating BusinessNet sales totaled 1,660 million yen and operating profit was 52 million yen.
Sales increased mainly because of a larger number of orders involving road projects and earnings were about thesame as one year earlier.
4) Real Estate BusinessNet sales totaled 625 million yen and operating profit was 419 million yen.
Sales were almost the same as one year earlier but earnings decreased because of a lower occupancy rate at
tenant-occupied buildings.
5) Other Businesses
Net sales totaled 608 million yen and operating profit was 195 million yen.
Earnings increased due to higher sales in the materials sales operations and the warehousing and transportation
businesses.
(2) Explanation of Financial Position
AssetsCurrent assets increased by 1,805 million yen from the end of the previous fiscal year to 125,624 million yen.
This was attributable mainly to a decrease of 9,002 million yen in cash and deposits, an increase of 6,381 million
yen in notes and accounts receivable-trade, and contract assets, a decrease of 4,190 million yen in securities andan increase of 8,255 million yen in inventories.
Non-current assets increased by 653 million yen from the end of the previous fiscal year to 102,839 million yen.
This was mainly attributable to an increase of 2,372 million yen in property, plant and equipment and a decreaseof 1,880 million yen in investment securities.
Total assets increased by 2,459 million yen from the end of the previous fiscal year to 228,463 million yen.
Liabilities
Current liabilities decreased by 1,023 million yen from the end of the previous fiscal year to 27,349 million yen.
This was attributable mainly to an increase of 2,802 million yen in notes and accounts payable-trade, a decreaseof 824 million yen in income taxes payable, and decreases of 852 million yen in accounts payable-equipment,
1,045 million yen in accrued consumption taxes and 1,340 million yen in electronically recorded
obligations-non-operating included in other current liabilities.
Non-current liabilities decreased by 1,642 million yen from the end of the previous fiscal year to 15,691 million
yen. This was attributable mainly to decreases of 986 million yen in retirement benefit liability and 611 million
yen in deferred tax liabilities included in other non-current liabilities.
Total liabilities decreased by 2,665 million yen from the end of the previous fiscal year to 43,041 million yen.
Net assets
Net assets increased by 5,125 million yen from the end of the previous fiscal year to 185,422 million yen. This
was attributable mainly to increases of 2,966 million yen in retained earnings, 1,767 million yen in foreign
currency translation adjustment, 1,760 million yen in non-controlling interests, and a decrease of 1,617 million
yen in valuation difference on available-for-sale securities.

3

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 2Q of FY3/22(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
Although the global economy is expected to recover slowly, concerns about another resurgence of COVID -19
infections remain unresolved. The worldwide semiconductor shortage and rising cost of natural resources andenergy are also sources of uncertainty. As a result, Yodogawa Steel Works assumes that the outlook for the global
economy will remain unclear for the time being.
In the steel markets both in Japan and other countries, prices of raw materials used for steelmaking and of steel
products of all types continue to surge. Due to this situation, the steel market, including the balance between
supply and demand, is likely to remain unstable for the time being.
The Yodogawa Steel Group as well is likely to continue to operate in a challenging business climate due to theunpredictability and instability of demand and expenses in all regions.
To succeed in this uncertain business climate, all group companies are focusing on speed and agility concerning
both sales and production activities to respond to rapidly changing market conditions. To become even more
profitable, group companies are also establishing positions in new markets and increasing sales of value -added
products.
There is no forecast for the fiscal year ending on March 31, 2022 at this time because of the increasing
uncertainty about the business climate in Japan and other countries. An announcement will be made promptly
once it becomes possible to determine a reliable forecast.

4

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 2Q of FY3/22

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Millions of yen)
Second quarter of FY3/22(as of Sep. 30, 2021)

FY3/21(as of Mar. 31, 2021)
AssetsCurrent assets
Cash and deposits

42,03533,032

Notes and accounts receivable-trade, and contract assets

41,22947,611

Electronically recorded monetary claims-operating

3,005

3,060

Securities

6,821

2,630

Merchandise and finished goods

12,672

15,720Work in process

4,158

5,162

Raw materials and supplies

9,258

13,463

Other

4,783

5,090

Allowance for doubtful accounts

(147)

(147)

123,818

125,624

Property, plant and equipment

52,59954,971Intangible assets

1,752

1,839

Investment securities

46,86544,984Retirement benefit asset

285

307

Other

683

736

Total current assets
Non-current assets

Investments and other assets

Total investments and other assets

47,83446,028102,185

102,839

226,004

228,463

Notes and accounts payable-trade

13,744

16,546

Electronically recorded obligations-operating

2,247

2,388

Income taxes payable

2,717

1,892

Provision for bonuses

1,365

1,174

Total non-current assets
Total assets
Liabilities
Current liabilities

Provision for product warranties

336

506

Other

7,962

4,840

Total current liabilities

28,37327,349

52

31

6,907

5,921

Non-current liabilities
Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability
Other

10,373

9,738

Total non-current liabilities

17,333

15,69145,70743,041

Total liabilities

5

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 2Q of FY3/22(Millions of yen)
Second quarter of FY3/22(as of Sep. 30, 2021)

FY3/21(as of Mar. 31, 2021)
Net assets
Shareholders’ equity
Share capital

23,22023,220Capital surplus

18,10818,285Retained earnings

110,822

113,788

Treasury shares(12,091)(12,029)

Total shareholders’ equity

140,060

143,265

19,207

17,590

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges-(0)

Revaluation reserve for land

1,636

1,629

Foreign currency translation adjustment

1,458

3,226

Remeasurements of defined benefit plans

109

139

22,412

22,584

Total accumulated other comprehensive income
Share acquisition rights

227

214

Non-controlling interests

17,596

19,357

Total net assets

180,296

185,422226,004

228,463

Total liabilities and net assets

6

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 2Q of FY3/22(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statement of Income)(For the Six-month Period)First six months of FY3/21(Apr. 1, 2020 to Sep. 30, 2020)(Millions of yen)First six months of FY3/22(Apr. 1, 2021 to Sep. 30, 2021)

Net sales

67,46893,873

Cost of sales

56,09878,904Gross profit

11,37014,968Selling, general and administrative expenses

8,316

9,309

Operating profit

3,054

5,658

Interest income

138

139

Dividend income

344

461

Foreign exchange gains

11

19

Gain on valuation of derivatives

11-

Gain on sale of investment securities
Share of profit of entities accounted for using
equity method
Other

462

275

123

219

Non-operating income

Total non-operating income

205

509

1,298

1,625

33

32

78

85

31

30

Non-operating expenses
Interest expenses
Cost for employees transferred temporarily tooverseas subsidiaries
Other
Total non-operating expenses

143

147

4,209

7,136

Gain on sale of non-current assets

019Insurance claim income

13-

Total extraordinary income

13

19

47

81

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on sale and retirement of non-current
assetsLoss on valuation of investment securities-

1

Impairment losses

01

Total extraordinary losses

48

84

Profit before income taxes

4,175

7,071

Income taxes-current

1,585

1,761

Income taxes-deferred

(274)

(21)

Total income taxes

1,310

1,740

Profit

2,865

5,331

Profit (loss) attributable to non-controllinginterests

(48)

1,220

Profit attributable to owners of parent

2,914

4,110

7

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 2Q of FY3/22(Quarterly Consolidated Statement of Comprehensive Income)(For the Six-month Period)First six months of FY3/21(Apr. 1, 2020 to Sep. 30, 2020)(Millions of yen)First six months of FY3/22(Apr. 1, 2021 to Sep. 30, 2021)

Profit

2,865

5,331

Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges

5,824(1,729)-(0)Foreign currency translation adjustment
Remeasurements of defined benefit plans, netof taxShare of other comprehensive income ofentities accounted for using equity method

(246)

2,978

79

34

38

18

Total other comprehensive income

5,696

1,302

8,561

6,633

8,588

4,290

(27)

2,343

Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to ownersof parent
Comprehensive income attributable tonon-controlling interests

8Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 2Q of FY3/22(3) Notes to Quarterly Consolidated Financial Statements
Going-concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Not applicable.
Notes to Quarterly Consolidated Balance Sheet
Contingent liabilities
Yodogawa Steel Works has determined that, depending on the location, conditions and other aspects of their use,
there have been problems involving the appearance and durability of some building exterior pre-painted steel
sheets manufactured between 2007 and 2016 that have occurred prior to the end of the expected lifetime of thesesheets. Yodogawa Steel Works has explained this problem to companies that se ll these sheets and is covering
repair and other expenses.
Repair and other expenses, including expenses for problems that have occurred but where repairs and otheractivities have not been completed, are recorded as period costs. The costs of the problems involving these sheets
have not been expensed because it is not possible to determine a reliable forecast of how many problems will
occur.
There may be significant repair and other expenses involving these sheets in the coming years depending on
number of problems that occur.
Changes in Accounting Policies
Application of the Accounting Standard for Revenue Recognition
Yodogawa Steel Works started to apply the Accounting Standard for Revenue Recognition (ASBJ Statement No.
29, March 31, 2020) at the beginning of the first quarter of the fiscal year ending on March 31, 2022. Based on
this standard, revenue expected to be received in exchange for the provision of goods and services is recognizedwhen the control of the promised goods and services is transferred to customers. The main change is that of thetransactions that were previously recognized as revenue based on the total amount of consideration received fromthe customer, those that fall under the category of agency transactions are now recognized as revenue on a net
basis. In addition, sales incentives, which were previously included in selling, general and administrative
expenses, are now treated as a decrease in sales.
This change in accounting policy has been applied retrospectively in principle, a nd the quarterly consolidated
financial statements and consolidated financial statements for the previous quarter and the previous fiscal year
have been adjusted retrospectively. However, Yodogawa Steel Works has applied the following method as
stipulated in Paragraph 85 of the Accounting Standard for Revenue Recognition.
(1) No retroactive adjustment to the comparative information for contracts for which almost all the revenue
amounts have been recognized in accordance with the previous treatment prior to the beginning of theprevious fiscal year.
(2) To retrospectively adjust the comparative information for the amount of variable consideration included incontracts for which almost all of the revenue amounts have been recognized in accordance with the previous
treatment prior to the beginning of the current fiscal year, using the amount at the time when the uncertainty
about the amount of the variable consideration is resolved.
(3) No retroactive adjustment to the quarterly consolidated financial statement s for the previous fiscal year forcontracts that began and ended during the previous fiscal year.
As a result, net sales decreased by 1,925 million yen, cost of sales decreased by 1,693 million yen, selling,
general and administrative expenses decreased by 232 million yen, and operating profit, ordinary profit and profit
before income taxes each decreased by 0 million yen, respectively, compared with the results before theretrospective application. In addition, as the cumulative effect was reflected in ne t assets at the beginning of theprevious fiscal year, the balance of retained earnings at the beginning of the previous fiscal year decreased by 12
million yen.
Due to the application of the Accounting Standard for Revenue Recognition, “Notes and accounts
receivable-trade,” which was presented in “Current assets” in the consolidated balance sheet for the previous
fiscal year, is included in “Notes and accounts receivable-trade, and contract assets“ from the first quarter of thecurrent fiscal year.
9Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 2Q of FY3/22

Application of the Accounting Standard for Fair Value Measurement
Yodogawa Steel Works has applied the Accounting Standard for Fair Value Measurement (ASBJ Statement No.
30, July 4, 2019) and other standards from the beginning of the first quarter of the current fiscal year, and has
applied the new accounting policies prescribed in the Accounting Standard for Fair Value Measurement
prospectively in accordance with the transitional treatment prescribed in Paragraph 19 of the Accounting Standard
for Fair Value Measurement and Paragraph 44-2 of the Accounting Standard for Financial Instruments (ASBJ
Statement No. 10, July 4, 2019). There is no effect of this application on the quarterly consolidated financial
statements.
Segment and Other Information
Segment information
I. First six months of FY3/21 (Apr. 1, 2020 to Sep. 30, 2020)
Information related to net sales and profit/loss for each reportable segment
Reportable segments
Steel
Roll
Sheet-related
Business
Business

Grating
BusinessReal
EstateBusiness

Total

Others(Note 1)

Total

(Millions of yen)Amounts
shown on the
Adjustment consolidated(Note 2)statement ofincome(Note 3)

Net sales
External sales
63,285
1,405
1,594
617
66,902565
67,46867,468Inter-segment
219
219
1,012
1,232
(1,232)
sales and transfers
Total
63,285
1,405
1,594
837
67,122
1,578
68,700(1,232)
67,468Segment profit
3,259
(133)
47
438
3,612
55
3,667
(613)
3,054
(loss)
Notes: 1. Others represent businesses which are not included in any of the reportable segments and mainly consist oftransportation, warehouse, golf course, machinery plant, electric power (sale of solar power) and other businesses.
2. The adjustment to segment profit (loss) includes unallocated expenses of (613) million yen and an elimination forinter-segment transactions of 0 million yen.
3. Segment profit (loss) is adjusted to be consistent with the operating profit on the quarterly consolidated statementof income.

II. First six months of FY3/22 (Apr. 1, 2021 to Sep. 30, 2021)
Information related to net sales and profit/loss for each reportable segment
Reportable segments
Steel
Roll
Sheet-related
Business
Business

Grating
BusinessReal
EstateBusiness

Total

Others(Note 1)

Total

(Millions of yen)Amounts
shown on the
Adjustment consolidated(Note 2)statement ofincome(Note 3)

Net sales
External sales
89,809
1,168
1,660
625
93,264608
93,87393,873
Inter-segment
210
210
1,300
1,510
(1,510)sales and transfers
Total
89,809
1,168
1,660
835
93,474
1,909
95,384(1,510)93,873
Segment profit
5,530
40
52
419
6,042
195
6,237
(578)
5,658
Notes: 1. Others represent businesses which are not included in any of the reportable segments and mainly consist oftransportation, warehouse, golf course, machinery plant, electric power (sale of solar power) and other businesses.
2. The adjustment to segment profit includes unallocated expenses of (575) million yen and an elimination forinter-segment transactions of (3) million yen.
3. Segment profit is adjusted to be consistent with the operating profit on the quarterly consolidated statement of income.

This summary report is solely a translation of “Kessan Tanshin” (in Japanese, including the attachments), which has been
prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers
who prefer an English translation.

10