February 4, 2021

Summary of the Consolidated Financial Results for the Third Quarterof the Fiscal Year Ending March 31, 2021 (FY3/21)(Nine Months Ended December 31, 2020)[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:
February 10, 2021
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results: None
Holding of quarterly financial results meeting:
None
Stock code:
Representative:
Inquiries:(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Third Quarter (April 1, 2020 to December 31, 2020) of FY3/21(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales

Operating profit

Millions of yen

Nine months ended Dec. 31, 2020
Nine months ended Dec. 31, 2019

% Millions of yen

107,775
117,076

Note: Comprehensive income (millions of yen):

(7.9)
(7.9)

5,499
4,230

% Millions of yen

30.0(13.9)

6,944
5,193

Nine months ended Dec. 31, 2020:
Nine months ended Dec. 31, 2019:% Millions of yen

33.7(25.6)

4,618
3,342

%

38.2
(20.4)

13,225 (up 231.0%)
3,995 (-%)

Diluted net income
per share

Net income per share
Nine months ended Dec. 31, 2020
Nine months ended Dec. 31, 2019

Profit attributable toowners of parent

Ordinary profit

Yen

Yen

158.72113.41158.01112.95(2) Consolidated financial position
Total assets

Net assets

Shareholders’ equity ratio

Millions of yen

Millions of yen%

As of Dec. 31, 2020
As of Mar. 31, 2020

217,298
201,125

177,184
167,291

73.6
74.6

Reference: Shareholders’ equity (millions of yen):

As of Dec. 31, 2020:

159,957

As of Mar. 31, 2020:

150,037

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

Total

Yen

Yen

Yen

Yen

Yen

-

30.00
35.00

-

40.00

70.00

35.00

70.00

Fiscal year ended Mar. 31, 2020
Fiscal year ending Mar. 31, 2021
Fiscal year ending Mar. 31, 2021
(Forecast)

Note: Revisions to the most recently announced dividend forecast: None

3. Consolidated Forecasts for FY3/21 (April 1, 2020 to March 31, 2021)
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

150,000

(2.6)

7,200

31.2

8,700

17.2

5,600

45.0

192.93

Note: Revisions to the most recently announced consolidated earnings forecast: Yes
For further details, please refer to “1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explana tion ofConsolidated Forecast and Other Forward-looking Statements” on page 3.

* 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: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: None
4) Restatements: None

(4) Number of outstanding shares (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
As of Dec. 31, 2020:

35,837,230 shares

As of Mar. 31, 2020:

35,837,230 shares

As of Mar. 31, 2020:

6,509,597 shares

Nine months ended Dec. 31, 201929,475,755 shares

2) Number of treasury shares at the end of the period
As of Dec. 31, 2020:

7,056,994 shares

3) Average number of shares outstanding during the period
Nine months ended Dec. 31, 2020:

29,099,189 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 information, please refer to “1.
Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated Forecast and Other
Forward-looking Statements” on page 3.

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 3Q of FY3/21

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

3

2. Quarterly Consolidated Financial Statements and Notes

5(1) Quarterly Consolidated Balance Sheet

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

6

Quarterly Consolidated Statement of Income
For the Nine-month Period

6

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

7(3) Notes to Quarterly Consolidated Financial Statements

8

Going-concern Assumption

8

Significant Changes in Shareholders’ Equity

8

Notes to Quarterly Consolidated Balance Sheet

8

Segment and Other Information

9

1

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 3Q of FY3/21

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
During the first nine months of the fiscal year ending March 31, 2021, the Japanese economy was severely
impacted by the worldwide spread of the new coronavirus infection (the COVID-19 pandemic). On the other hand,
there were improvements in some sectors due to government economic measures.
In the global economy, there was a significant slowdown due to the COV ID-19 pandemic. However, the global
economy has started to recover slowly with the support of upturns in consumer spending and jobs in the UnitedStates, production and capital expenditures in China, and other improvements.
In the steel market in Japan, manufacturers reduced output and inventories due to the slowdown in economic
activity. But this was followed by a rapid market recovery that included a big increase in automobile production.
In the overseas steel market, steel production in China is increasing again along with a recovery in economic
activity, and the market has been unstable because of speculation in raw materials and other reasons .
The Yodogawa Steel Group’s net sales in the first nine months decreased 9,301 million yen to 107,775 million
yen. Operating profit increased 1,269 million yen to 5,499 million yen, ordinary profit increased 1,751 million
yen to 6,944 million yen, and profit attributable to owners of parent increased 1,275 million yen to 4,618 million
yen.
In Japan, sales decreased due to lower sales of steel sheets, but earnings were higher because of cost reduction
measures.
Overseas, sales decreased mainly because of lower sales at the Taiwan subsidiary Sheng Yu Steel Co., Ltd.
(SYSCO). Although sales were lower, earnings increased mainly because of higher earnings at the Thai
subsidiary PCM Processing (Thailand) Ltd. (PPT).
Results by business segment are as follows.
1) Steel Sheet-related BusinessNet sales totaled 99,693 million yen and operating profit was 5,789 million yen. Sales declined and earnings
increased.
Steel Sheet
In Japan, sales decreased because of lower sales volume of steel sheets to specific high -demand customers as well
as a decrease in sales volume of steel sheets for general distribution due to sluggish const ruction demand causedby the COVID-19 pandemic. However, earnings increased due to cost reduction measures.
Overseas, operating profit increased at SYSCO in Taiwan despite a decline in sales volume in the domestic
market in Taiwan mainly because this company conducted sales activities that placed priority on profitability. At
Yodogawa Shengyu (Hefei) High-Tech Steel Co., Ltd. (YSS), a subsidiary in China, the sales volume increased
but earnings were about the same as one year earlier. The main reason was th e negative effect of urban blockademeasures implemented to protect against the COVID-19 pandemic around the time of the Chinese New Year’s
holiday. The business climate for PPT in Thailand continues to be difficult. Although sales were about the sameas one year earlier, profitability improved due to an increase in sales volume of value -added products.
Building Material & Exterior Products
In the building materials category, sales volumes for fire-proof panel wall materials (Yodo Grand Wall), storage
sheds and garages remained firm. However, sales were lower than one year earlier mainly because sales of YODO
Roof and Yodo Print decreased. Construction sales were about the same as one year earlier.
2) Roll BusinessNet sales totaled 1,886 million yen and operating loss was 291 million yen.
Sales and earnings decreased due to lower sales to the steel industry.

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Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 3Q of FY3/21

3) Grating BusinessNet sales totaled 2,587 million yen and operating profit was 117 million yen.
Sales decreased due to a reduction in road projects and other factors but earnings increased because of sales
activities that placed priority on profitability.
4) Real Estate BusinessNet sales totaled 929 million yen and operating profit was 659 million yen.
Sales and earnings increased because of a higher occupancy rate at tenant-occupied buildings.
5) Other Businesses
Net sales totaled 2,677 million yen and operating profit was 100 million yen.
Sales and earnings decreased due to lower sales in the materials sales operations and the warehousing andtransportation businesses.
(2) Explanation of Financial Position
AssetsCurrent assets increased by 1,181 million yen from the end of the previous fiscal year to 117,734 million yen.
This was attributable mainly to an increase of 6,258 million yen in cash and deposits, a decrease of 3,152 million
yen in securities and a decrease of 3,396 million yen in raw materials and supplies.
Non-current assets increased by 14,991 million yen from the end of the previous fiscal year to 99,563 million yen.
This was mainly attributable to increases of 12,224 million yen in investment securities and 2,636 million yen inproperty, plant and equipment.
Total assets increased by 16,172 million yen from the end of the previous fiscal year to 217,298 million yen.
Liabilities
Current liabilities increased by 2,598 million yen from the end of the previous fiscal year to 22,107 million yen.
This was attributable mainly to an increase of 1,297 million yen in income taxes payable.
Non-current liabilities increased by 3,681 million yen from the end of the previous fiscal year to 18,006 million
yen. This was attributable mainly to an increase of 3,676 million yen in deferred tax liabilities included in othernon-current liabilities. Total liabilities increased by 6,279 million yen from the end of the previous fiscal year to40,114 million yen.
Net assets
Net assets increased by 9,892 million yen from the end of the previous fiscal year to 177,184 million yen. This
was attributable mainly to increases of 2,432 million yen in retained earnings and 8,651 million yen in valuationdifference on available-for-sale securities.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
The outlook for global economy is becoming increasingly uncertain due to the second wave of COVID-19
pandemic and prolonged U.S.-China trade friction.
In Japan, although some sectors of the economy are recovering, the business climate is expected to remainchallenging for the foreseeable future because of the return of a state of emergency in resp onse to the current
COVID-19 pandemic and other events.
In the steel market, there are concerns about instability of the balance between the supply and demand for steel
for the time being in Japan and other countries. As a result, the steel market is likel y to remain difficult with anuncertain outlook.

3

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 3Q of FY3/21

The Yodogawa Steel Group anticipates a challenging business environment. In all regions, our overseas
subsidiaries continue to be affected by protectionist measures amid an unpredictable and unstable environment
for demand and expenses.
All group companies are working on becoming more profitable. Companies are establishing positions in newmarkets and increasing sales of value-added products while taking full advantage of the speed and flexibility thatare key strengths of the Yodogawa Steel Group.
The forecast for consolidated performance in the current fiscal year is based on this outlook for the economy andsteel market.

4

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 3Q of FY3/21

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Millions of yen)
Third quarter of FY3/21(as of Dec. 31, 2020)

FY3/20(as of Mar. 31, 2020)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Electronically recorded monetary claims-operating
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Other
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable-trade
Electronically recorded obligations-operating
Short-term borrowings
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

532,65039,117
8,652
15,406
4,145
12,216
4,496(131)
116,553

38,90839,6182,763
5,500
13,600
3,888
8,820
4,766
(132)
117,734

47,493
1,641

50,1301,729

34,778658
35,437
84,572
201,125

47,002700
47,70399,563
217,298

10,582
2,340
640
250
923
4,772
19,50911,129
2,354
235
1,547
632
6,208
22,107

79

49

7,281
6,963
14,32433,834

7,392
10,56418,006
40,114

23,22020,381
106,763(13,351)
137,014

23,22020,411109,196(14,402)138,426

10,476
1,636
1,489
(578)
13,023224
17,029167,291
201,125

19,128
1,636
1,239
(472)
21,531
235
16,990177,184
217,298

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 3Q of FY3/21(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statement of Income)(For the Nine-month Period)First nine months of FY3/20(Apr. 1, 2019 to Dec. 31, 2019)(Millions of yen)First nine months of FY3/21(Apr. 1, 2020 to Dec. 31, 2020)

Net sales

117,076

107,775

Cost of sales

99,98389,276Gross profit

17,092

18,499Selling, general and administrative expenses

12,862

13,000Operating profit

4,230

5,499

Interest income

379

212

Dividend income

747

571

Foreign exchange gains

2232

Non-operating income

Gain on valuation of derivatives-

11

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

0

462

348

214

226

245

1,723

1,751

64

51

133

132

513

-

Other

48

122

Total non-operating expenses

760

305

5,193

6,944

0

0

Insurance claim income-

13

Total extraordinary income

0

14

86

60

Total non-operating income
Non-operating expenses
Interest expenses
Cost for employees transferred temporarily tooverseas subsidiaries
Loss on valuation of derivatives

Ordinary profit
Extraordinary income
Gain on sales of non-current assets

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

273

1

Impairment loss

00

Loss on disaster
Loss on liquidation of subsidiaries andassociates
Other

13

-

-

12

-

0

375

75

Profit before income taxes

Total extraordinary losses

4,818

6,883

Income taxes-current

1,198

2,246

Income taxes-deferred

389

(33)

Total income taxes

1,588

2,213

Profit

3,230

4,670

Profit (loss) attributable to non-controllinginterests

(112)

51

Profit attributable to owners of parent

3,342

4,618

6

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 3Q of FY3/21(Quarterly Consolidated Statement of Comprehensive Income)(For the Nine-month Period)First nine months of FY3/20(Apr. 1, 2019 to Dec. 31, 2019)(Millions of yen)First nine months of FY3/21(Apr. 1, 2020 to Dec. 31, 2020)

3,230

4,670

2,132

8,683

(1,487)

(302)

133

119

(13)

54

765

8,555

3,995

13,2254,550

13,126(554)

99

ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, netof taxShare of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to ownersof parent
Comprehensive income attributable tonon-controlling interests

7

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 3Q of FY3/21(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 expect ed lifetime of thesesheets. Yodogawa Steel Works has explained this problem to companies that sell 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.

8

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 3Q of FY3/21

Segment and Other Information
Segment information
I. First nine months of FY3/20 (Apr. 1, 2019 to Dec. 31, 2019)
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
108,1932,133
2,623
903 113,853
3,223 117,076
117,076
Inter-segment
331
331
1,820
2,151
(2,151)sales and transfers
Total
108,193
2,133
2,623
1,234 114,185
5,043 119,228(2,151)
117,076
Segment profit
4,384
(220)
68
639
4,871
228
5,099
(869)
4,230
(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 ( 870) 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 nine months of FY3/21 (Apr. 1, 2020 to Dec. 31, 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
99,6931,886
2,587
929 105,097
2,677 107,775
107,775
Inter-segment
326
326
1,599
1,926
(1,926)sales and transfers
Total
99,6931,886
2,587
1,256 105,424
4,277 109,701(1,926)
107,775
Segment profit
5,789
(291)
117
659
6,275
100
6,375
(876)
5,499
(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 ( 877) 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 quarter ly consolidated statementof 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, fo r the convenience of readers
who prefer an English translation.

9