Yodogawa Steel Works, Ltd.

Securities identification code: 5451

YODOKOREPORT2017
118th Term Report

April 1, 2016-March 31, 2017

SAKURA 100
As we approach our 90th anniversary in 2025 and look ahead tothe next 100 years of corporate growth, we are committed toembodying the qualities of the cherry tree, as displayed inour corporate symbol, and to sustainably grow with momentum
and adaptability to branch out into new domains.

To Our Stakeholders・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 1
What is Yodoko?
● Our Position in the Iron and Steel Industry ・
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● Production and Sales Frameworks Providing Our Momentum ・・ 5● Process of Value Creation・
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● Financial and Non-financial Highlights ・
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Interview with Top Management・・・・・・・・・・・・・・・・・・・・・・・・ 11
Medium-Term Management Plan・・・・・・・・・・・・・・・・・・・・・・・ 17
Overview by Segment ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 19
Status of Overseas Business・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 23
The Foundation that Supports Value Creation● Product Development Initiatives ・
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● Human Resources Development / Social Contribution Activities・・ 27● Environmental Preservation Initiatives ・
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● Corporate Governance・
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Financial Information● Overview of Consolidated Operational Results ・
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● Consolidated Financial Statements ・
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Company Outline and Stock Information・・・・・・・・・・・・・・・ 37

To Our Stakeholders
Since our founding in 1935, we have beensustainable growth under this environment and to

an independent iron and steel manufacturer

act on our belief that sharing a future vision withfocusing on surface-treated steel sheet and its

stakeholders will be effective for increasing the vitality

downstream building materials business, in addition toof the Group.

steel roll and steel grating business derived fromthe electric furnace business, to which we have

Furthermore, we decided to publish a new

added engineering and real estate businesses as well.

Yodoko Report in order to deepen stakeholders’With these segments, we have grown as a corporate

understanding of our Long-Term Vision,group that enjoys a unique presence.

Medium-Term Management Plan, and the current
status of the Group.

As the business environment surrounding the Group
Yoshitsugu Kokubo

Takaaki Kawamoto

Chairman and
Representative Director

Yodogawa Steel Group Business Philosophy

Yodoko’s History of Challenging Itself
to Pursue Value Creation

Basic Philosophy

1935

Create Value with New Originality.
The Yodogawa Steel Group declares its basic philosophy tobe, “Create Value with New Originality,” centered on
surface-treated steel sheets with the goal of being a valued,
needed company that has earned the trust of society.
Business Philosophy

Win the trust of customers and shareholders, and create
the functional capabilities expected by them.
Aim to be the best manufacturer to meet the broad needsof society. Grow by taking up the challenge to innovate andby expanding based on the individual creativity of each
employee.Work in harmonious coexistence with society andthe natural environment.
1

President andRepresentative Director

Founded the Company (at thesite of the existing Osaka Plant)
in 0saka city, Japan on January
30 for the purpose of production
and sales of steel sheets andother products

1940

Started manufacture ofgalvanized steel sheet

1948

Started manufacture of cast ironand steel rolls

1951

Constructed Izumiotsu Plant for
manufacture of various steel
products

1954

Constructed Kure Plant for
manufacture of cold rolled steel
sheets and other products

changes with increasing volatility, we formulated

We would like to sincerely ask for your continued

a Long-Term Vision and three-year Medium-Term

support and encouragement going forward.

Management Plan from FY 2017 in order to achieve

1963

Started manufacture of(continuous) galvanized steel
sheet

1964

Started manufacture of
pre-painted steel sheet

1965

Started manufacture and salesof building materials

1970

Started manufacture and salesof exterior products

1972

Constructed Ichikawa Plant for
manufacture of cold rolled steel
sheets and other products

1986

Started manufacture ofgalvalume steel sheets

June 2017

1994

Made Sheng Yu Steel Co., Ltd.
(Taiwan) a subsidiary

1999

Established PCM Processing(Thailand) Ltd. in Thailand

2007

Started sales of chromate-free
pre-painted steel sheet for roofing
and siding (first in this industry)

2011

Established Yodogawa-Shengyu(Hefei) High-Tech Steel Co., Ltd.
in China

2What is Yodoko?
Our Position in the Iron and Steel Industry

We develop and deliver distinctive products addressing
safety, security, the environment, and esthetics ina variety of business areas.
Blast furnace steelmaker business

Steel Sheet-related Business

Steel Sheet Segment

Steel material

Steelmaking
and casting

Blast furnace

Raw materialContinuous
Picking

Cold rolling

Continuous
galvanizing

Steel Sheet Segment

Continuouscolor coating
Pre-painted steel sheets

Cold rolled steel sheets,
steel strips

Limestone

Galvanized steel sheets

Hot rolled
steel sheets

Coal

Delivering Products that
Perfectly Match Customer Needs
Example of product use
in electric appliances

Iron ore

Cold rolling

Continuous galvanizing

Continuous color coating

Example of product use
in interior building
materials

High-quality steel sheets originating fromyears of accumulated technologies areused for a variety of industrial purposes,
such as in construction and in
the manufacture of electric appliancesand housing equipment. Throughthe development of highly functional,
value-added, and environmentallyfriendly products, our Company
meets the demands of customers
and the modern age.

Net sales by business
Building Material Segment
Grating

Building Material &Exterior Products Segment

Real Estate & Other

2.4%

2.8%

Rolls

Molding / processing
and assembly

Building material products

Construction

Building Materials and Exteriors:
Part of our Society and Daily Lives

Exterior Products Segment

2.2%

154,221

Molding / processing
and assembly

Exterior products

YODO fire-proof panel
Grand Wall installation
examplemillion yen

Steel Sheet-related

92.6%
3

Molding / processing(Building materials)

Molding / processing(exterior products)

Construction(Building materials)

Yodo-Garage Emerge II

From molding and processing technology
gained through our integrated steel
sheet manufacturing, to our nationwide
sales and service network, we makethe most of years of experience toproduce a variety of pioneering
products that include steel-sheetbuilding materials and exterior products.

Roll Business

World-Renowned Rolls Built
on Sound Technology and Quality
With products that range from rolls forthe steel industry created with one of
the world's largest centrifugal casting
facilities, to equipment for the paperindustry including rolls and peripheral
equipment, Yodogawa is one ofJapan’s leading roll manufacturers.
Grating Business

Yodogawa Gratings Support Safe andComfortable Environments
Gratings are an integral part of the roads,
parks, and different infrastructure that
supports safe and secure lifestyles.
With these lifestyles in mind, we provide
a range of products that areenvironmentally friendly, people-friendly,and safe.
Real Estate & Other Businesses
The Real Estate business operates
buildings and parking lots for rent andalso manages and skillfully utilizes
the Company’s real estate holdings.
4

What is Yodoko?

Production and Sales Frameworks Providing Our Momentum

・Production bases located evenly throughout Japan and a network of 21 sales bases that achieve close
regional ties with customers and communities.
・Overseas production and sales bases rolled out in Asia ahead of other companies in our industry.
・Sheng Yu Steel Co., Ltd. (SYSCO Taiwan) has successfully promoted locally rooted business, including
being listed on the Taiwan Stock Exchange and having strong brand recognition within Taiwan.
・Working from a network of bases evenly balanced throughout Asia, we supply high-quality
surface-treated steel sheets around the world, including North / Central / South America, Southeast Asia,
Oceania, Africa, and elsewhere.

Net sales by country and region

3.6%

Japan

127
Japan

Other Asian
countries
China &
Hong Kong

Thailand

2.1%

6.6%
4.9%

No. of employees by region

Other

North / Central /South America

64.9%
million yen

Thailand

1,431

Japan

TaiwanChina

279

154,221

2,402

Taiwan565

TaiwanSales bases
Production bases

18%(Year ended March 31, 2017)(Year ended March 31, 2017)

Japan
Yodogawa Steel Works, Ltd.

TaiwanNet sales by country
and region
Southeast Asia

Sheng Yu Steel Co., Ltd.

Other

0.7%

Taiwan,domestic

7.0%

million yen

North /
Central /South
America(Year ended March 31, 2017)

Other

China,
domestic

PCM Processing(Thailand) Ltd.

Net sales by country
and region
Other

Southeast Asia

0.3%

93.3%

99.7%

Southeast
Asia

3.4%

41,804

5,673

4,114

million yen

million yen

million yen

19.2%

2.1%
Head Office

ThailandNet sales by country
and region
3.3%

8.5%

97,043
North /
Central /South
America

Yodogawa-Shengyu (Hefei)
High-Tech Steel Co., Ltd.

65.3%

Southeast
Asia

96.1%

China

Net sales by country
and region
Other

1.1%
Japan,
domestic

5

China

SYSCO Taiwan(Year ended March 31, 2017)

YSS China(Year ended March 31, 2017)

PPT Thailand(Year ended March 31, 2017)

6

What is Yodoko?
Process of Value Creation

We aim to contribute to the sustainable development of society and to grow as a corporation
through value creation addressing safety, security, the environment, and esthetics.
Business Environment &Business Philosophy

Strengths of
the Yodogawa Steel Group

Business Activities

Yodogawa Steel Group
Medium-Term Management Plan 2019

p.3-6

Social challenges● A declining and aging

population with a low birth rate
● Depletion of natural resources● Disaster mitigation andpreparedness● Achieving a sustainable society(1) Sales
A domestic and international sales
framework closely tied toregional customers

Create Value withNew Originality

Basic Policy

Dynamic
Mobility● Building Material &Exterior Products Segment

customer needs

Flexible procurement due to ouradvantage of being independent● Corporate integration andrestructuring (iron and steel
industry)● Emergence of protectionist

tendencies(4) Production
Well-balanced sales bases deployed
domestically and internationally

Maximallyleveragethe dynamic
mobility andGroupcapabilities thatare our strength
Focus onbuilding afoundation for
our Long-Term
Vision(3) Procurement● More diverse and complex

Record stable consolidated
ordinary income of 10 billion yen.

● Steel Sheet Segment

Technical capabilities to precisely meetcustomers’ needs

Basic Philosophy

Objective

Steel Sheet-related Business(2) Technology

RollBusiness

Grating
BusinessReal
Estate &OtherBusinesses

p.17-18

Basic Strategy

Long-Term Vision
The SAKURA 100

The Group will continue to achievesustainable growth by pursuingbusiness that leverages our dynamic
mobility supported by our Business
Philosophy, while putting thecomprehensive strengths of theGroup into practice.

Basic Strategy

Challenge ourselves to enter new
business areas
Stimulate new business stemming from existing businessEnter downstream business areas outside Japan

Basic Strategy

Build a robust business foundation
Simultaneously target a strong financial standing while
proactively investing in growth
Foster human resources and improve organizational
strength
Coexist with all of our stakeholders

A prolific company thatchallenges itself in new
business areas

Safetyachieving sustainable growth● Provide stable, continuous

returns to shareholders

Customers andbusiness partners

products and services that
address the needs ofcustomers and society● Use our more than 80 yearsof history to build trusting
relationships with business
partners

Ideal Corporate Image
A nimble company
adaptable to manychanging environments● Maximize corporate value by● Deliver safe and reliable

Security

Environment
Employees
Esthetics● Provide a safe and secureenvironment conducive to
productive work

A lasting company thatis admired globally● Accelerated globalization andintensifying competition

As the business environment surrounding the Group changes
with increasing volatility, we formulated a Long-Term Visionand three-year Medium-Term Management Plan from FY 2017
in order to achieve sustainable growth and to act on our belief
that having a future vision and sharing it with stakeholders is
effective for increasing the vitality of the Group.
7

Creating Value through Business

Establish a resilient profit structure
Increase the depth of our business model
Dedicate effort to niche markets, product differentiation,and development of product applications
Strengthen collaboration and ties within the Group

Shareholders andinvestors● Foster human resources

We engage in the various activities of
product development,
manufacturing, and sales while
addressing safety, security,
the environment, and esthetics, anddelivering diverse value to all of our
stakeholders.

eager to engage in innovationand develop personal
character oriented toward
growthSociety and nature● Contribute to lower

environmental burdens bysupplying environmentallyconscious products● Contribute to social
infrastructure by supplying
aesthetically pleasing
products

8What is Yodoko?
Financial and Non-financial Highlights
Net sales, overseas net sales (consolidated)■■Net sales ■■Overseas net sales(Millions of yen)

Cash flow from operating activities, cash flow frominvesting activities, free cash flow (consolidated)

Total assets, net assets (consolidated)

200,000■■Total assets ■■Net assets(Millions of yen)

250,000
157,551

141,084

175,889

159,214

154,221

187,804
147,049

100,000

207,775
156,533

220,071
164,899

205,859
153,399

125,000
54,75647,55369,191

58,999(Millions of yen) ■■Cash flow from operating activities ■■Cash flow from investing activities(People)20,0002,500

10,0000

2014/3(114th term)(115th term)

2015/3(116th term)

2016/3(117th term)(Year ended(118th term) March 31)

Operating income, ordinary income, profit (loss)
attributable to owners of parent (consolidated)■■Operating income ■■Ordinary income■■Profit (loss) attributable to owners of parent(Millions of yen)

15,00013,168
7,500
4,946
3,629
0

7,590
6,122
3,270

2,516

7,173
3,428 2,617(114th term)

2013/3

2014/3(115th term)

2015/3(116th term)

6,734
6,734

7,302

2016/3(117th term)

37

50

2,740 1,852

140,313147,212137,149

2013/3(114th term)-1,355-9,052

2014/3(115th term)(116th term)

10,00083
50

2016/3(117th term)

2013/3(Year ended(118th term) March 31)■■Capital investment ■■Depreciation and amortization(114th term)

5,000
3,914

4,286

5,076
3,851

5,774
4,230

4,067

(114th term)(115th term)

2015/3(116th term)

50

70(114th term)

2014/3(115th term)

2015/3(116th term)

2016/3(117th term)

2017/3

2013/3(Year ended(118th term) March 31)

7.6

8.1

8.1

7

6

6

7

6

2012

2013

2014

2015

2016

6.9

6

5

(114th term)

2014/3(115th term)

2015/3(116th term)

2016/3(117th term)0

2017/3(Year ended(118th term) March 31)

2016/3(117th term)

2017/3(Year ended(118th term) March 31)(Year)*Regular employees only

Net assets per share (consolidated)

Total dividends, amount of treasury stock acquired(non-consolidated)(Yen)(Millions of yen)

5,000

2,500

4,449

4,757

4,500

4,805

■■Total dividends ■■Amount of treasury stock acquired

Environmental preservation costs, CO2 emissions(reduction vs. FY 1990 emissions*) (non-consolidated)(Millions of yen)

800

41

39

2,110

2,500

1,250

0

*Data before the 117th Term have been adjusted to account for shareconsolidation.

9

2017/3 (Year ended(118th term) March 31)002013/3

4,227-90

2014/3

2016/3(117th term)■■No. of employees using the child care leave system (Hours)■■ Average monthly overtime
10(People)

1,195

1,582
1,319

1,568
1,193

742

400

1,222

2013/3(114th term)

2014/3(115th term)

2015/3(116th term)

2016/3(117th term)*Data before the 117th Term have been adjusted to account for shareconsolidation.

2013/3(114th term)

2014/3(115th term)

2015/3(116th term)

2016/3(117th term)

2017/3(Year ended(118th term) March 31)

735

720

760

644
326

180

200

2014/3

2015/338

002017/3 (Year ended(118th term) March 31)■Investment amount ■Preservation costs (%)■ CO2 reduction rate
40
37
36
34

1,802
1,544

499

2013/3

2015/3(116th term)

No. of employees using the child care leave system,
average monthly overtime* (non-consolidated)
12

9,307

2014/3(115th term)

8,062

75,000

1,156
1,156

1,157

0

2017/3

262

-125

1,197

-1,559-10,278

2015/3

1,223

1,247

1,250

Capital investment, depreciation and amortization(consolidated)
143,241■■Consolidated ■■Non-consolidated
2,452
2,402

8,658

2,827 1,472-7,200-7,448(Millions of yen)

133,4132017/3 (Year ended(118th term) March 31)

224
103

(Year ended(118th term) March 31)

0■■Profit per share ■■Dividends per share

79(117th term)

2017/3

2,496

2,729

250

125

(116th term)

2016/3

2,491

6.4

Profit per share, dividends per share (consolidated)(Yen)(115th term)

2015/3(Millions of yen)

150,000-2,771(114th term)

2014/3

Shareholders’ equity (consolidated)

13,7638,444-3,0000

2013/32017/3

2,290

10,2189,125

54,2440

19,404

10,1890-10,000

2013/3■■Free cash flow

209,977
161,374

No. of employees (consolidated, non-consolidated)

2012/3(113th term)

2013/3(114th term)

20

0(115th term)(116th term)

2016/3(Year ended(117th term) March 31)*Under the Japan Iron and Steel Federation’s Voluntary Action Program(formulated in 1996), the commitment was made to save energy in iron- andsteel-making processes, setting a 10% reduction in energy consumption as
its goal for the fiscal year 2010 compared to fiscal 1990 levels.

10Interview with Top Manage ment
Under our Long-Term Vision, we will achieve sustainablecorporate growth as we head to our 100th year of operation.
In the current fiscal year ended March 31, 2017, the Japanese
economy still showed weak consumer spending, although
the employment environment trended positively andthe moderate recovery continued. In the overseas economy,
the impact of protectionist measures was a concern;
however, the U.S. economy recorded solid performance,
China showed signs of recovery from government-led
support measures, and continued overall improvement
could be seen in ASEAN countries.
In the iron and steel industry, demand was somewhat
sluggish in the first half of the year, though construction
demand increased in the latter half due to the automobile
industry and facilities related to the Tokyo Olympics.
Meanwhile, steel-making material price increases throughout
the year presented the Company with a challenge in terms of
responding to higher costs. Furthermore, there were frequentinstances of protectionist tendencies, such as anti-dumping
measures in various parts of the world.
Given this environment, Group operational results forthe consolidated fiscal year amounted to net sales of
154,221 million yen (down 4,992 million yen, year on year),
operating income of 13,168 million yen (up 5,866 million
yen, year on year), ordinary income of 13,763 million yen (up5,319 million yen, year on year), and profit attributable toowners of parent of 6,734 million yen (versus a 2,771
million yen loss attributable to owners of parent in theprevious fiscal year).
Formulating our Long-Term Vision, SAKURA 100,and the Yodogawa Steel Group Medium-Term
Management Plan 2019 in March 2017, the Company
embarked on a new start as we look ahead towardachieving the next 100 years of sustainable corporate
growth. We would like to sincerely ask for your continued
support and trust going forward.

Takaaki Kawamoto President and Representative Director
11

is your assessment of operating
Q. Whatresults for the year ended March 31, 2017?
efforts emphasizing profitability yielded
A. Ourhigher profits over the previous year.
We are expanding our business by taking delivery of hotrolled steel sheets from blast furnace steelmakers and othersuppliers, then processing them, adding value at our own
facilities, and selling those products. As we faced risingcosts from raw materials, etc. during the year, we had tofind flexible approaches to procurement and sales. This
allowed us to secure profits, which was no doubt due toour nimbleness from being an independent company.
As for our overseas subsidiaries, Sheng Yu Steel Co.,
Ltd. in Taiwan saw a pronounced decrease in U.S.-boundexports due to anti-dumping measures, but was able tosignificantly grow profits thanks to strong brand awarenessand domestic sales within Taiwan. Additionally, oursubsidiaries in Thailand and China grew income as a resultof finding new sales channels, etc.
Efforts such as these emphasizing profit inside andoutside Japan produced an 8.5% operating margin, withsteady growth in performance.
Looking back on our core businesses inside Japan, we
continued to bring to market and enhance our production
framework for products anticipated in the coming years as
follows: we launched YODO Hyper GL Color, which
achieves high durability without using the environmentally
harmful substance hexavalent chromium; for building
materials, we started operating a new production base(the Himeji Plant) to meet demand for YODO fire-proof
panel Grand Wall, which is a fire-resistant exterior panel
replacing ALC panel (autoclaved lightweight aerated
concrete panel); and, for exterior products, we expanded
sales of products for disaster preparedness.
At our overseas sites, the continuous color coating line at
Thailand subsidiary, PCM Processing (Thailand) Ltd. started
getting on track, while early results have been emerging

New chromate-free pre-painted steel sheet for roofing and siding,launched January 2017

Himeji Plant production site for YODO fire-proof panel Grand Wall

12

Interview with Top Manage mentfrom finding new sales channels for building materials at
companies including our subsidiary Yodogawa-Shengyu(Hefei) High-Tech Steel Co., Ltd. in China and we expect
further positive developments going forward.

Q.

What kind of ideas are in the SAKURA 100
Long-Term Vision?

A.

We want to strive to be a company withsustainable growth no matter how
the business environment changes.

In recent years, the business environment surrounding
the iron and steel industry has been undergoing majorchanges. Inside Japan, demand for iron and steel as well as
construction-related products is on a downward trend due tothe shrinking population, aging demographics, and declining
birthrate, while customers are demanding more diversified
and advanced products. Outside Japan, long-term demand
growth is expected; however, uncertainty is increasing as
growth slows in emerging economies and protectionist
measures arise. Furthermore, we expect accelerating
globalization and further intensifying competition.

As we are part of the iron and steel industry, ouroperating results are more susceptible to impacts frommarket fluctuations, which is why we had not previously
announced medium- to long-term business plans. However,in order to achieve sustainable growth for the Group amidst
this volatile business environment, we formulated ourLong-Term Vision out to 2025, which we call SAKURA 100,and the three-year Yodogawa Steel Group Medium-Term
Management Plan 2019 (both announced in March 2017).
As a distinctive and independent company in the iron andsteel industry, we enjoy a business foundation that includes
trusting relationships built up over many years with customers
and suppliers, in addition to a robust financial standing, dynamic
mobility, and strength from our network of overseas bases.
At the core of our Long-Term Vision is leveraging
the strength of this business foundation to achievesustainable growth no matter how the businessenvironment changes. In other words, this meansemphasizing substance over scale and striving for a
resilient corporate structure able to post stable profits.
We have proposed a plan for achieving our two-tiered
objective (ordinary income and operating income) of 10
billion yen in stable, consistent income.
Although our performance this fiscal year exceeded our

profit target, we do not feel that it represents true strength
due to certain aspects of the market environment that werein our favor.

are the key points of your first
Q. WhatMedium-Term Management Plan?

A.

A major theme is recording stableconsolidated ordinary income of
10 billion yen.

Our Long-Term Vision SAKURA 100 was named in reference
to the registered trademark of our steel sheet products andsets forth the ideal image for the Group—one that adapts tochanging environments, challenges itself in new businessareas, and is active in the global market, Asia in particular.
Our Medium-Term Management Plan 2019 is positioned
in order to lay the early foundation for achieving this visionand includes the three specific strategies of establishing aresilient profit structure, challenging ourselves to enter new
business areas, and building a robust business foundation.
The Group’s existing business areas are in mature
sectors where it is difficult to significantly differentiate our

products. The key points of the plan are: through further
advancing our business model, providing comprehensive
added value that includes fine-tuned proposals to customers,
providing quick delivery services and technical support,
while also increasing revenue through synergistic effects
between steel sheets and building materials.
One example of this is our organic progress in the steel
sheet and building material business domains. Inside Japan,
ties between our steel sheet and building material businesses
have shown significant results through collaborative productdevelopment, sales, and technical support for customers.
Another major theme is the overseas roll out of thesesynergies and regionally focused sales approaches.
In China and Taiwan, we are expanding sales ofbuilding materials to meet demand growth, while also
working to make future gains in downstream areas bystrengthening collaboration and ties with subsidiaries
carrying out construction work.
Furthermore, we put together two production bases,
one in the east and one in the west, for our YODO
fire-proof panel Grand Wall in the fiscal year under review.
This product will replace the ALC panel, which is
the mainstay siding material for mid- and low-rise buildings.
We plan to continue building new demand for this andMedium-Term Management Plan Objectives
In striving to realize our long-term vision SAKURA
100, the objectives of the Yodogawa Steel Group
Medium-Term Management Plan 2019 include
recording stable consolidated ordinary income of 10
billion yen, while not being buffeted by environmental
factors such as market conditions of our current
businesses and exchange rates, etc.
For details, see p. 17-18.

13

Building Materials Performance Test Lab, Osaka Plant

Installation example at Yodoko Building Materials (Hangzhou), China
66H roofing and 806 siding
Building name: Hitachi Transport System (Tianjin) New No. 2 Warehouse14

Interview with Top Manage ment
other paneling and composite materials by developing
applications and identifying niche markets.
In the exterior products domain, we aim to berecognized as the top brand so that the words “storageshed” makes consumers think of Yodoko. Leveraging ourstrength as a manufacturer able to integrate business frommaterials to development, we will achieve this recognition
by delivering diverse color variations, offering excellent
durability, and developing distinctive products with disaster
preparedness and other features. We also have our sights
set on rolling this business out in other Asian regions.
Regarding new businesses, which is another major
theme, we are using our basis in existing businesses as afoothold for identifying new
fields. One example of this is
our YODO Cloud Monooki
business, which we arebroadening into the storage
services field. Although results
will not be immediate, we aretaking a medium- to long-term
YODO Cloud Monooki
perspective on persistentdevelopment in this area.

are your key ESG (environmental,
Q. Whatsocial, and governance) initiatives?

A.

is your policy for returns to
Q. Whatshareholders?

We are working on continuous andsubstantial efforts to coexist with all of
our stakeholders.

greatest focus is on implementing
A. Ourstable, continuous returns to shareholders.

Along with making an early commitment to expanding andenhancing our governance structure, we announced ourgoal to “coexist with all of our stakeholders” in ourLong-Term Vision.
Additionally, we are pursuing business expansion while
addressing safety, security, the environment, and esthetics.
Our diverse initiatives include developing steel sheets that
do not use environmentally harmful substances, exteriorbuilding materials that improve building insulation,
emergency supply warehouses with auto-lock releasemechanisms during earthquakes, and floor-space partition
options for sheds, which are useful when they are used at
evacuation center during disasters.
Going forward, we plan to pursue ever more substantial
ESG initiatives.

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We recognize returns to shareholders as one of our highest
business priorities and feel that it is important to pay stable,
continuous dividends in line with operating results. Thisrequires sustainable growth, rather than temporary boosts
to business performance, which is why maintaining arobust financial position is a pillar of our basic policy forcapital management.
Our goal for the next three years is to maintain annual
dividends per share of 50 yen or more, while aiming for a
consolidated annual payout ratio of approximately 30-50%.
In the fiscal year under review, we paid a 70-yen dividend(a 30-yen interim dividend and a 40-yen year-end dividend),
with a consolidated annual payout ratio of 31.2%.

Dividends per share■■Dividends per share

(Yen)

100

トップ 〉ヨドクラウド物置とは

ヨドクラウド物置とは「ヨドクラウド物置」は、

75

70

あふれるモノをボックスで預かり、収納に困らない、快適な生活をお助けします。
「ヨドクラウド物置」は「ヨド物置」でおなじみのヨドコウ、株式会社淀川製鋼所が提供する収納・保管サービスです。

50

50

50

50

50

2014/3

2015/3

2016/337「ヨドクラウド物置」では、屋外の物置では湿度や温度差が気になる衣類
や写真、お子様の工作などのメモリアルグッズといったモノを専用ダンボール一個単位から、安全・安心にお預かり致します。
預けたモノはパソコン・スマートフォンからネット上で確認、取り出しも
簡単です。

25

子供がもうすぐ小学校。机を置くスペースを作る必要が！という方、ホテルの様なスッキリした空間で快適に過ごしたい！という方、とにかく家の中はモノがいっぱい！という方などにおすすめしたいサービスです。

収納できるものをもっとみる

YODO fire-proof panel Grand Wall installation example
Building name: Nankai Wakayamashi Station Office
Building

YODO Emergency Supply Warehouse with
Auto-Lock Release Mechanism during
Earthquakes
Product name: YODO Kura MD

YODO Cloud Monooki
A safe and secure service使い方は簡単！
offering storage of important
clothing, photographs, etc. in an outdoor humidity andtemperature controlled shed. Even single boxes are
accepted (special cardboard boxes required).
「ヨドクラウド物置」は、専用ボックス（ゴルフ、スキー、スノーボードはカバー） を購入いただき後日、届いたボックスに預けたいモノを入れて、ご送付頂くだけの簡単なサービスです。

2012/3

2013/32017/3(113th term) (114th term) (115th term) (116th term) (117th term) (118th term)(Year ended
March 31)

what is your message to
Q. Last,stakeholders?
We believe that we have an obligation toto sustain our businessA. everyonefor 100 or even 200 years.

In the fiscal year ending March 31, 2018, we forecast our
profitability will face challenges since production costs will
likely rise, despite the demand environment inside andoutside Japan maintaining current levels.
We have a robust financial position and highshareholders’ equity ratio, which are the foundation for oursolid corporate culture. Looking back on our history, we
have corporate DNA for developing and delivering tosociety new products that meet the demands of each age.
We believe that building a business that can be sustainedfor 100 or even 200 years under a dependable corporate
culture, no matter how the ages change, is our greatest
obligation to all of our stakeholders.
We ask for your continued support and trust going
forward.

*Data before the 117th Term have been adjusted to account for share consolidation.

預けた後もネット上から確認と取り出しを簡単に行えます。

15

詳しいご利用の流れ

16Medium-Term Management Plan
Positioning of the Current Medium-Term Management Plan
FY
2018

FY
2019

FY
2020

Medium-Term
Management
Plan 2019

FY
2021

FY
2022

2nd Medium-Term
Management Plan

FY
2023

FY
2024

FY
2025

Policyreview/execution

Graceful cherry tree

Objective

Run-up period
Policy roll out

Finalization
periodSolidifying results

New policy
examination/roll out

Company adaptable tomany changing
environments

Record stable consolidated
operating income of 10 billion yen

Record stable consolidated
ordinary income of 10 billion yen

Structure building

Long-Term Vision
the SAKURA 100

3rd Medium-Term
Management Plan

Objective

Preparation
periodFY 2026 – FY 2035

Blossoming company
Company that challenges
itself in new business areas

SAKURA
Lasting company
that is admired globally

Develop into a 100-year corporation

FY
2017

Business Strategy
Steel Sheet Business

Building Material Business

Exterior Products BusinessRoll Business● Pursue high value-added● Expand sales of highly● Further strengthen sales● Further strengthen businessbusiness with pre-painted
steel sheets as our mainstay
product● Develop new productapplications and identify
niche markets that respondto specific needs● Pursue a product mix that
optimizes our production
structure and utilizes thestrengths of our production
lines● Deepen collaboration andties (for procurement,
technology, and distribution)
between Group companies

functional products● Highly functional exteriormaterials (YODO fire-proof
panel Grand wall, Fine
Panel, Barrier Rock)● Highly functional
pre-painted steel sheets(YODO Hyper GL Color)● Utilize integrated expertise in
raw materials, building
materials, and construction

Ordinary income(consolidated)

Building Material Business● Capture demand for surface-treated● Roll out exterior products overseas

Strengthen connections between each base’s
customers and suppliers● Identify new overseas markets, focusing on
Sheng Yu Steel Co.,Ltd

sheet and building material businesses

137● Foster global human

100
50

resources280

2009/3(110th term)

17

75

66
2010/3(111th term)

2011/3(112th term)

75
49

47
2012/3(113th term)

2013/3(114th term)

2014/3(115th term)

71

2015/3(116th term)

Build a collaborative structure with local
companies● Accelerate collaboration and ties between the steel(stable earnings capacity while not being swayed by environmental
factors such as market conditions, exchange rates, etc.)

150●

essentials by integratingproduction and sales● Strengthen sales closely tied
to regional customers● Develop highly functional
products● Identify new productapplications

Other Business

Objective: Stable consolidated
ordinary income of 10 billion yen(100 millions of yen)

● Further strengthen business

Steel Sheet Business●essentials by integratingproduction and sales● Utilize roll production
technology to stimulate
demand in unaddressed
fields● Differentiate products● Reduce lead times

Grating Business

Steel Sheet Business (overseas)steel sheets, primarily in Asia

Medium-Term Operating Objectives

closely tied to regionalcustomers● Develop products fusing
steel sheet and building
material technologies● Optimize production anddesign● Identify new business fields
utilizing our technologicalprowess and know-how

84

2016/3(117th term)

2017/3(118th term)

2018/3(119th term)

2019/3(120th term)● Localize operations atoverseas subsidiaries

Real Estate Business● Effectively leverage realestate assets
Engineering Business● Capture demand for steel
sheet processing equipment(Africa and Southeast Asia)

2020/3(121th term)

18

Overview by Segment
Steel Sheet-Related BusinessNet sales

118th term (actual)

YoY

142,811million yen-3.3%

Operatingincome12,969 million yen+80.6%Net sales(Millions of yen)

180,000
163,173
140,659

147,758

146,791

142,811130,549

120,000

Steel Sheet Segment
Looking back on the year ended March 31, 2017
● Tied sales in the Japan market (sales to specific high-demandcustomers) grew as sales volume increased accompanying
improved demand; however, profit declined as time was required
to adjust prices.
● Retail sales in Japan (for general distribution) showed increased
revenue from stronger sales proposals to customers and steadyprogress in price adjustments.
● Overseas income grew due to successful efforts to strengthen
sales in Taiwan by Sheng Yu Steel Co., Ltd., while PCM
Processing (Thailand) Ltd. moved into the black.
Yodogawa-Shengyu (Hefei) High-Tech Steel Co., Ltd. also
showed steady improvement.

Outlook for the year ending March 31, 2018
● We predict a difficult profitability environment amidst rising raw

60,0000

2012/3 2013/3 2014/3 2015/3 2016/3 2017/3 (Year ended(113th term) (114th term) (115th term) (116th term) (117th term) (118th term) March 31)

Initiatives for achieving the Medium-Term
Management Plan

Operating income(Millions of yen)

● As we move toward expanding sales

15,00012,96910,000
7,181

6,702

6,382
5,000

4,522
3,450

0

2012/3

2013/3

2014/3

2015/3

2016/3ended
2017/3 (YearMarch 31)(113th term) (114th term) (115th term) (116th term) (117th term) (118th term)

19material prices.
● We will dedicate effort toward galvanized steel sheets in
the residential construction-related field, while switching frompost-coated products to pre-painted steel sheets for colored products.
● We will continue to bring Yodogawa-Shengyu (Hefei) High-Tech
Steel Co., Ltd. on track.

of high-value added pre-painted steel
sheets, we will work to develop
Pre-painted steel sheets applications,enter niche markets, and strengthen
our ability to handle small lot
production.
● We will further boost internal Group
collaboration and competitiveness byhaving procurement and steel
sheet/building material divisions work
together.

Building Material &Exterior Products Segment
Looking back on the year ended March 31, 2017
● Although roofing products, a mainstay building material, did wellfor the year thanks to large orders for distribution warehouses,
etc., sales volume for building materials declined overall as we
faced stiff competition on small- and mid-sized buildings.
Additionally, we dedicated effort to generating new customers byoffering YODO fire-proof panel Grand Wall as a replacement for
ALC construction, in addition to other uses as exterior building
material.
● While the exterior products industry overall saw lower
year-on-year sales for storage sheds, we saw a slight increasein net sales for our storage sheds and garages.

Outlook for the year ending March 31, 2018

YODO fire-proof panel Grand Wallinstallation example

Reference

Building Material & Exterior Products
Segment (Yodogawa Steel Works, Ltd., non-consolidated)

Building material
products● With the Himeji Plant starting operations, we will strengthen our

production framework for YODO fire-proof panel Grand Wall anddedicate effort toward expanding sales of building materials.
● With regard to exterior products, we will dedicate effort toexpanding sales of new products, such as our newly updated
models of Esumo small-scale storage sheds.
● For construction, we will strive to attract steady orders forlarge-scale buildings.

Initiatives for achieving the Medium-Term
Management Plan

Exterior
products
Construction

Pre-painted steel sheets

Production facilities forpre-painted steel sheets

118th term (actual)

YoY

9,842 million yen-4.8%

14,342 million yen+0.0%

1,949 million yen-31.1%Net sales(Millions of yen)

30,000■■Building material products ■■Exterior products ■■Construction● In terms of building materials, we will dedicate effort toexpanding sales of highly functional products (insulated siding).
● For exterior products, we will implement regional sales strategies
and strive for the top domestic market share in sheds.
● For construction, we will strive to attract more orders throughproposals for streamlined construction that includes new
construction methods.
● In terms of development, we will strive to meet customer needs
related to our objectives of merging steel sheet and building
material technology, as well as further expanding streamlined
construction products.

Yodo-Monooki storage sheds

2,049

1,650

2,208

2,828

1,949

14,454

14,094

14,335

14,342

10,367

10,572

10,339

9,842

1,700
20,00012,391

14,083

10,000
9,438

9,752

0

2012/3 2013/3 2014/3 2015/3 2016/3 2017/3 (Year ended(113th term) (114th term) (115th term) (116th term) (117th term) (118th term) March 31)

20Overview by Segment
Roll Business

Real Estate & Other Businesses

118th term (actual)YoY

Net sales

3,385 million yen-2.6%

Operatingincome264 million yen-0.6%

Net sales(Millions of yen)

5,000

5,052
3,535

3,476

3,474

3,385

2,508

2,500

Looking back on the year ended March 31, 2017
high-valued added rolls with improved abrasion resistantproperties, which contributed to performance results.

Outlook for the year ending March 31, 2018
● We forecast steady progress in products for the iron and steel

industry.
● For products in the non-ferrous industry, we will strive to apply roll
technology for papermaking and expand sales in new domains.

Initiatives for achieving the Medium-Term
Management Plan

Net sales
Operatingincome3,672million yen+3.5%

162million yen+113.6%● We will strengthen our corporate structure by unifying production

Net sales
4,000
3,146

3,349

3,598

3,510

3,550

3,672

2,000

2012/3 2013/3 2014/3 2015/3 2016/3 2017/3 (Year ended(113th term) (114th term) (115th term) (116th term) (117th term) (118th term) March 31)

21

Looking back on the year ended March 31, 2017
● Roadway-related business faced a severe environment as budgets

favored disaster recovery projects; however, we were able togrow sales year-on-year thanks to ahead-of-schedule
implementation of economic growth-oriented public works
projects and effort toward orders for private building projects.

Outlook for the year ending March 31, 2018
material prices, we will strive to further reduce
costs and adjust sales prices.

Initiatives for achieving the Medium-Term
Management Plan
● We will expand our share of the roadway sector

0

-1.8%

Operatingincome1,075 million yen +12.9%

YODO karugaru
grating

through careful community-based sales,development of highly functional products, and throughstrengthening our corporate structure by unifying production.
● We will strive to develop new product applications and strengthen
earnings capacity.

Looking back on the year ended March 31, 2017
● We improved our occupancy rate in rental buildings in the realestate business.

● Transportation and warehouse business also trended positively.

Outlook for the year ending March 31, 2018
● We will continue to effectively leverage assets in the real estatebusiness.

● We will closely communicate with customers in our engineering

Net salesbusiness and actively roll out sales activities, such as future facility
proposals, etc.

5,728
4,653
3,650

4,430

4,351

2,500

Initiatives for achieving
the Medium-Term Management Plan
● We will effectively leverage assets in the real0

2012/3 2013/3 2014/3 2015/3 2016/3 2017/3 (Year ended(113th term) (114th term) (115th term) (116th term) (117th term) (118th term) March 31)● In a challenging environment due to surging raw(Millions of yen)

4,351 million yen

3,918

Grating BusinessYoY

Net sales

5,000

2012/3 2013/3 2014/3 2015/3 2016/3 2017/3 (Year ended(113th term) (114th term) (115th term) (116th term) (117th term) (118th term) March 31)

118th term (actual)

YoY(Millions of yen)and sales; we will develop domains we have yet to enter; and wewill strengthen earnings capacity through product differentiationand cost reductions.

0118th term (actual)● Targeting the iron and steel industry, we strove to expand sales ofTopicsestate business in order to contribute toimproving the Group’s earnings capacity.
● We will leverage the engineering business tocapture demand primarily with steel sheet
processing equipment.

Head office building

Strengthening production framework for
YODO fire-proof panel Grand WallGiven expectations for YODO fire-proof panel Grand Wall (launched in October2014) to see demand growth going forward, we decided to strengthen our
production capacity. At the Himeji Plant, we completed a new production line,
which has been operating since March 2017.
While prior production capacity was 10,000 m2 per month, with the new line
being operational we expect a monthly production capacity of 25,000 m2 permonth. We will strengthen the plant’s quality control and delivery capabilities,
while also striving to further expand sales.

Full view of the Himeji Plant

Location: 1207 Hamada, Aboshi-ku, Himeji-city, Hyogo prefecture
Property size: 33,000 m2 Total floor space: 15,657 m2
Main facilities: YODO fire-proof panel Grand Wall production equipment,
YODO sandwich panel Fine Panel production equipment

22

Status of Overseas Business
PCM Thailand

SYSCO Taiwan
Location: Kaohsiung, Taiwan R.O.C
Chairman of the board: Makoto Omori
President: T.Y. Cheng
No. of employees: 565
Business activities: Steel sheet manufacturing and sales
Main facilities: 1 pickling line 2 cold rolling lines 2 galvanizing lines 2 color coating lines
Trade name: Sheng Yu Steel Co., Ltd.
Established: May 19, 1973
Paid-in capital: NT$ 3.2118 billion

Taiwan■Thailand■

Looking back on the year ended March 31, 2017

Outlook for the year ending March 31, 2018

Looking back on the year ended March 31, 2017

Outlook for the year ending March 31, 2018

● The Taiwanese economy continued its steady recovery in● Due to the issue of excess global steel supply, we forecast● Thailand’s economy posted 3.2% GDP growth in 2016 and● Thailand’s GDP is forecast to grow 3-4% in the first half of 2017,

FY2016, led by a recovery in exports and capital expenditures,
mainly in the semiconductor industry.
● In the iron and steel business, surplus production by Chinese
steelmakers set the context for increased protectionist measures,such as anti-dumping and other safeguards, in various parts of
the world.
● Lower net sales, but higher profit, year-on-year came amidst
a severe environment in which we diversified export targets in
response to a U.S. anti-dumping lawsuit, while striving tostrengthen domestic sales in Taiwan.

the challenging environment to continue, including rising costs
from the surge in raw material prices.
● We will strive to ensure profit by reflecting rising raw material
prices in product prices, continue reducing costs, andstrengthening domestic sales, which showed strong results lastyear.
● We will strive to further bolster quality, service, and costcompetitiveness, while stimulating new demand in order toachieve added growth.

Location: Anhui, China
Trade name: Yodogawa-Shengyu (Hefei)
Chairman of the Board: Toyomi Omori
High-Tech Steel Co., Ltd.
President: Satoshi Nitta
Established: October 28, 2011
No. of employees: 279
Paid-in capital: USD 220 million
Business activities: Steel sheet manufacturing and sales
Main facilities: 1 galvanizing line 2 color coating lines

China

■

Looking back on the year ended March 31, 2017

Outlook for the year ending March 31, 2018

● Although the Chinese economy met its growth targets in FY2016,● We will strive to increase brand recognition inside China andmuch of it was propped up by policy measures, with
self-sustaining recovery remaining weak.
● We dedicated effort to high-profit construction projects and to
expanding Prepainted steel sheet sales for Japanese home
appliances.
● We strove to expand sales of Al-Zn alloy-coated steel sheets for electric
home appliances and were able to increase net sales year on year.

showed a modest recovery. As tourism slightly slowed, exports
made a strong contribution to economic growth.
● We focused on finely tuned services to existing customers, inaddition to expanding sales and cutting costs. Operations were in
the black for the first time since the continuous color coating line
started running in 2013.

TopicsYSS China

23

Trade name: PCM Processing (Thailand) Ltd. Location: Amatanakorn Industrial Estate
Representative: Shohei Kozaki
Established: April 1999
No. of employees: 127
Paid-in capital: THB 1,377,259,000
Business activities: Pre-painted steel manufacturing, processing and sales
Main facilities: 1 continuous color coating line 2 large leveler lines 1 sheet slitter

expand sales channels to areas such as distribution and tiedsales (to the manufacturing industry) in order to secure stableorder volumes.
● We will strive to expand sales while aiming for increased
competitiveness and making cost reduction efforts. We will aim to
make the coming year one in which we gain a foothold for stable
operations.

posting moderate growth on par with last year.

● Going forward, we will follow our policy of taking a broad

perspective toward the Asian market and stimulate new growth tobring exports to this region up to 30% of total exports. We wantto spread our brand in the ASEAN market, where further growth isexpected.

YSS China topics
4th Annual Meeting of the China National Building
Waterproofing Association

In FY2016, YSS China and Yodoko Building Materials(Hangzhou) Co., Ltd. joined the China National Building
Waterproof Association with the aim to gather technologicalinformation in China andboost our brand recognition
among local customers.
In FY2017, the twocompanies agreed to hostthe Association’s annual
meeting. Yodogawa SteelWorks, Ltd. Senior Executive
Officer Yoshihiro Kawamoto,who is also
The General Meeting

Vice-Chairperson of the Japan Metal Roofing Association,
attended the meeting. Along with making a presentation
covering the current state and future developments ofJapanese metal roofing
technology, Director
Kawamoto attracted many
interested listeners whenintroducing and giving
examples of steel sheet
roofing in Japan. Throughactivities like this, we are
striving to raise the Group’s
brand awareness in the
Yodoko Building Materials (Hangzhou)Co., Ltd.’s exhibit booth
Chinese market.

24

The Foundation that Supports

Value Creation

Product Development Initiatives
Steel Sheet, Building Material &Exterior Product Segments

R&D Philosophy

Following our basic philosophy of “Create
value with new originality,” we engage in
research and development while constantly
considering whether projects do in fact haveoriginality and generate new value. In
the process, we ensure a company-wide
vigilance toward safety, security,
the environment, and esthetics.
▼Creating value through business

Steel sheets

SafetySecurity

Environment

Esthetics

Grating

Rolls

25

Building
materials &exterior
products

Roll and Grating Businesses

Roll BusinessWe pursue a basic policy of emphasizing
the customer’s ideas, developing differentiatedproducts, ensuring safety and security,
making products environmentally friendly anddurable, and trying to streamline construction.
Our steel sheet products can be separated into two broad
categories. The first category is steel sheets we provide as
material with specifications that meet manufacturers’
performance needs for electrical appliances and building
materials. The second category is steel sheets that we
process in-house and those that we sell throughintermediaries as material for general purpose building.
Sheets in the former category are made to fit eachcustomer’s exact needs and are produced by ourTechnology Development divisions at the Kure, Ichikawa,
and Osaka Plants. Sheets in the latter category are madein collaboration with each plant’s Technology Development
division after the head office Development divisionresearches market needs.
Our Head Office Development division also handles
the development of processed products that include exterior
products and building materials. By merging our steel
sheet, exterior, and building material development divisions,
we have been able to organically interconnect each group’s
technology and expertise from the product planning stage.
This has allowed us to develop steel sheets optimal forprocessed products, while engaging in development thatmakes the most of the properties of steel sheets.
This type of development framework has become
the source of Yodoko’s primary advantage of integrated
production from steel sheet to final product, in a processthat creates safe and secure products for users.

Product Development Center (Osaka Plant)With the Development division located in the Osaka Plant, we
carry out development of rolls for section steel by having
engineers and sales staff work together to meet customer
demands and provide follow up support. We aredeveloping systems for paper manufacturing rolls
customized forJapanese clients
through ourbusiness alliancewith the German
company Küsters
GmbH, a global
manufacturer.

Test Calendar machine for Paper Making (gloss finish)

Grating Business
Fire-proof and Fire-resistance Test Equipment (Osaka Plant)

Water Spray and Air Blast Test Equipment (Osaka Plant)

At the Development division located in the Izumiotsu Plant,
we have created a database from diverse information on
customer needs
and many typesof informationfrom sales staff,
while carrying out
development ofinnovative new
products that aresafe, durable, andaestheticallypleasing.
Water Falls Overflow Test

26

The Foundation that Supports

Value Creation

Human Resources
Development
Promoting the Active Participation of Female
Employees
We believe that establishing a work environment conducive toenergetic participation will stimulate the growth of individual
employees with diverse talents and values, while also
contributing to greater corporate value. Among our employees,
we especially want to encourage the participation of female
professionals, which led us to formulate an action plan.
For details, please see:
http://www.yodoko.co.jp/eco/wplan/index.html (written in Japanese only)

Social Contribution Activities

Quality Improvement
Activities (JK Activities)(

J: jishu for voluntary,
K: kanri for management

Environmental Preservation Initiatives)

We carry out self-management
activities in small groups
addressing the themes of quality Yodogawa Steel Group JK Meeting
improvement, cost reduction, productivity improvement,
safety, and environmental preservation. Once a year, we also
have a large meeting that brings Group companies together
in Osaka, with our 50th meeting taking place in 2016.
Presentations are made at this Group-wide meeting toprovide opportunities to study effective examples that we
can leverage to improve business practices. We utilize
these types of activities in order to strive for growth andself-realization for each employee.

Displaying the Yodoko Guest House to the Public
Participating in the SAKURA+ PROJECT
The name of this project incorporates the sentiment of wanting
to increase the number of cherry trees, cherry tree sightseeing
spots, and human connections created through cherry trees.
From March 2012, we have donated a portion of
the sales of our Esumo and Erumo lines of Yodo storage
cabinets and sheds to sponsor the SAKURA + PROJECT
and in November 2012, the PROJECT carried out it firsttree planting festival in Otsuchi-cho (Iwate Prefecture).
Currently, trees are being planted in Fukushima Prefecture
along national highways.

SAKURA + PROJECT logo

27

Symbolic tree in Otsuchi-cho,
Iwate prefecture

The Yodoko Guest House was designed by Frank Lloyd
Wright, lauded as one of the preeminent architects of the 20th
century, and built as a vacation villa for the eighth-generation
sake brewer Yamamura Tazaemon of Nada, Kobe Prefecture.
We have owned it since 1947. This villa has been designateda National Important Cultural Property by the Japanese
government and, since 1989, we have made it open to
the public as part of our social contribution activities.
Currently, the building is temporarily closed for historicalpreservation work that started in November 2016 and isscheduled to take approximately two years.

Yodoko Guest House (former vacation Girls’ Festival doll display
villa of the Yamamura Family)(mid-February to early April)

Basic Environmental Principles
Contribute to the preservation of the Earth’s
environment.
Conduct business with respect for the naturalenvironment.

Basic Environmental Guidelines
1. Instill awareness of environmental preservation
Provide our employees and partner company employeeswith environmental education to promote awareness ofenvironmental preservation and instill an action-oriented
mindset.
2. Ensure consideration for the environment in ourbusiness activities
1) In all of our business activities, strive to minimize
environmental burdens while preventing harmful
pollution, conserving resources, reducing energy
usage, rationalizing logistics, and reducing andrecycling waste. (Preventing harmful pollution:
adhering to environmental laws and standards)
2) Strive to minimize environmental burdens fromwaste when developing products by improving
durability, reusing materials, and utilizing materials
that are easy to recycle.
3. Establish internal organizations
In order to pursue the objectives above, strengthen
environmental management organizations at the head
office and each business site, while also implementing
environmental preservation activities.

▼Purpose and objectives of environmental activities
Prevent global
warming

Reduce CO2 from production divisions
Reduce CO2 from transport
Reduce CO2 from business offices

Create arecycling-oriented
society
Reduceenvironmentally
harmful substances

Promote reduction of resource usage
Reduce VOC emissions
Fully eliminate toxic chemical substances
Strengthen management of chemical substances

Consideration for
the environment

Guarantee the avoidance of toxic
chemical substances in finished goods
Contribute to local societies
Contribute to society through environmentallyconscious products and technology development
Promote environmental activities andensure risk management

Environmental Preservation Activities
Head Office

Kure Plant

In order to help make our city more
beautiful, we participated in the
Osaka Marathon Clean Up Campaign
held by the city of Osaka and cleaned
up the area around our head officebuilding.

Twice a year, in spring and fall,
the plant holds cleanup campaigns
targeting the streets around the plantand parks along the shoreline.

28

The Foundation that Supports

Value Creation

Corporate Governance
Basic Philosophy
In order to achieve sustainable growth and increase
corporate value over the mid-to long-term, we havepursued a variety of initiatives taking into consideration
the standpoints of all stakeholders, including shareholders,customers, business partners, employees, and local
societies, while positioning transparency, fairness, andprompt and courageous decision making as the objectiveof our corporate governance.

Corporate Governance Structure
We emphasize nimble management suited to the scale of ourcompany and have elected to be organized as a company with
an Audit & Supervisory Board. Furthermore, we have adopted
an Executive Officer system that aims to keep a measure ofefficient distance between Directors’ oversight/decision making
and business execution, while still maintaining continuity, fromthe standpoint of sharing information, between management
decisions and business execution.
In order to build a Board of Directors with a dynamic

Directors
structure and one that is optimal with regard to clarifying
management responsibilities and responding to changes inthe business environment, we have Directors elected for
one-year terms and the Company’s Articles of Incorporation
stipulate no more than seven Directors. By appointing
diverse Directors with differing experiences and knowledge,
we aim to ensure an appropriate size and diverse
composition of the Board of Directors, while facilitating moreenergetic, constructive, and engaging discussions during
Board meetings. Additionally, in order to strengthen
the transparency of oversight and decision making processes,
we also appoint independent Outside Directors who meet
the Tokyo Stock Exchange’s criteria for independence. Asof March 31, 2017, the Company has a total of six
Directors, two of whom are Independent Outside Directors.
With regard to the structure of the Audit & Supervisory
Board, the Companies Act and our Articles of Incorporation
stipulate that we have no more than four Audit &Supervisory Board members, with at least half being
independent Outside Audit & Supervisory Board members.

▼History of corporate governance reforms

29

June 2003

The Company elected to have one-year terms for Directors, in order to build a dynamic structure for the Board of Directors, and one that is optimal forclarifying management responsibilities and responding to changes in the business environment.

June 2004

The Company adopted an Executive Officer system, reducing the number of Board of Directors members from no more than 18 to no more than 7, inorder to have a measure of distance between oversight/decision making functions and business execution functions, to increase the strength andefficiency of the oversight functions of the Board of Directors, and to increase the speed of business execution.
After abolishing the Directors’ retirement benefits program, the Company adopted a stock option (stock-based remuneration) program for Directors
and Executive Officers. This program utilizes stock options and is intended to further increase the correlation between Company performance andCompany stock price, while also raising commitment and motivation toward growing the stock price and improving business performance.

June 2006

The Company decided to include Outside Directors on the Board of Directors and appointed one Outside Director in order to facilitate more energetic,
constructive, and engaging discussions during Board meetings, while also strengthening the transparency of oversight and decision making processes.

June 2015

The Company decided to include multiple, independent Outside Directors on the Board of Directors and appointed two Outside Directors in order tofacilitate more energetic, constructive, and engaging discussions during Board meetings, while also strengthening the transparency of oversight anddecision making processes.

December 2015

Accompanying the adoption of a corporate governance code, the Company enacted the Yodogawa Steel Works, Ltd. Corporate Governance
Guidelines as the Company’s second highest regulations after the laws and regulations of Japan and our Articles of Incorporation.

Yoshitsugu Kokubo

Takaaki Kawamoto

Toyomi Omori

Satoshi Nitta

Toshikazu Saeki

Hiroshi Okamura

Chairman and
Representative Director

President andRepresentative Director

Director, Senior Managing
Executive Officer

Director,
Senior Executive Officer

Director (Independent
Outside Director)

Director (Independent
Outside Director)

Audit & Supervisory Board Members▼FY 2016
Meeting attendance by outside directors andoutside audit & supervisory board members
NameToshikazu Saeki

14 times present
at 14 meetings

times present
Hiroshi Okamura 14
at 14 meetings

Maomi Hayashi

Shiro Morioka

Osamu Utsuro

Tomotaka Iwata

Audit & Supervisory Board
Member (full-time)

Audit & Supervisory Board
Member (full-time)

Audit & Supervisory Board
Member (Independent
Outside Audit & Supervisory
Board Member)

Audit & Supervisory Board
Member (Independent
Outside Audit & Supervisory
Board Member)▼Diagram of governance structure

Attendance atAttendance at Board Audit & Supervisoryof Directors meetings
Board meetings——

Osamu Utsuro

14 times present
at 14 meetings

18 times present
at 18 meetings

Tomotaka Iwata

11 times present
at 11 meetings

11 times present
at 11 meetings

General Meeting of Shareholders(Report)(Appointment)

Audit & Supervisory
Board Members(Audit & Supervisory
Board)(Audit)Board of Directors(Directors)

Compliance & Risk Management Committee[Report]Yodoko Hot Line
(whistleblowing system)(Report)(Appointment)(Audit)Accounting auditors(Report)Working Group forCompliance & Risk
Management[Compliance promotion][Risk management promotion][Violation prevention & education]

Auditing Office
Executive Committee(Executive Officers)[Internal audits]
Company-wide
Committees

Arrows indicate appointments, reporting, auditing,
instructions, surveys, whistleblowing, training, etc.

[Whistleblowing][Surveys]

Business and Management Divisions
Employees

30

Financial Information
Overview of Consolidated Operational Results

income of 13,168 million yen (up 5,866 million yen, year onyear), ordinary income of 13,763 million yen (up 5,319
million yen year on year), profit attributable to owners ofparent of 6,734 million yen (versus a 2,771 million yen loss
attributable to owners of parent in the previous fiscal year).
Although we dedicated effort toward emphasizing
profitable sales while adjusting prices, we were impacted in
the first half of the year by a softer market in Japan for steel
sheets and building materials. Overseas, we faced lower
sales to the U.S. by our Taiwanese subsidiary Sheng Yu
Steel Co., Ltd., in addition to the effects of currency
exchange rates, all of which contributed to decreased
sales. In terms of profit numbers, our results exceededguidance announced on November 2, 2016 due toimprovement by our Thai subsidiary PCM Processing(Thailand) Ltd. and our Chinese subsidiary
Yodogawa-Shengyu (Hefei) High-Tech Steel Co., Ltd.,
coupled with stronger domestic sales at our Taiwanesesubsidiary Sheng Yu Steel Co., Ltd., as well as efforts to
reduce energy costs and adjust steel sheet prices in Japan.

Market environment
The domestic Japanese steel market during the current
consolidated fiscal year lacked vitality in terms of
production demand from key industries in the first half,while movements to adjust product prices in response toincreases in the cost of steel-making materials also lacked
momentum. From autumn, however, there was steadyprogress in recovery for steel orders and corresponding
inventory adjustments, while government-led decreases incoal production in China stimulated a surge in prices formetallurgical coal, prompting higher product prices in thesecond half of the year.
In the overseas steel market, Chinese steelmakers
exported at high levels that prompted numerous protectionist
measures, such as anti-dumping and other safeguards, invarious parts of the world. However, in the second half ofthe year, strong domestic Chinese demand for steel,coupled with the impact of a surge in metallurgical coalprices, led to a solid steel market, particularly in Asia.
Despite this, a dip in steel-making materials prices andsoftening in the Chinese market towards the end of the year
were factors behind bearishness in the overseas market.

Future outlook
Led by strength in the U.S., the global economy isexpected to show moderate growth; however, this istempered by concern over whether the policies of the new
U.S. administration will become reality, as well as by the
Chinese economy’s signs of financial tightening in order toFinancial results
Given this environment, Group operational results for the
consolidated fiscal year amounted to net sales of 154,221
million yen (down 4,992 million yen, year on year), operating

Net sales

Operating income(Millions of yen)

(Millions of yen)

180,000

159,21490,000Down

14,000154,221

3.1％ YoY

0(Millions of yen)

13,168

3,500

7,302

Up

80.3 ％ YoY

3/2017(117th term) (118th term)(Year ended
March 31)3/2017(117th term) (118th term)(Year ended
March 31)

Up

–2,7713/2016(Millions of yen)

209,977

40,000(117th term) (118th term)(Year ended
March 31)Returns to shareholders
The Company sees returns to shareholders as one of ourhighest priorities and is committed to a policy of paying
dividends and buying back shares in line with operating
results. Our basic policy is to pay continuous and stabledividends that match our operating results, while considering
the outlook for future results, capital requirements necessary
for investments to boost corporate value, and resources
needed to maintain a robust financial standing. Our
objective to “pay dividends in line with operating results”
aims for a consolidated annual payout ratio of
approximately 30-50%. We are committed to maintaining a
50-yen or higher annual dividend per share for the three
years covering FY 2017-2019 (as per our Long-Term Vision
and Notice of our Medium-Term Management Planannounced on March 28, 2017).
The dividend per share for the fiscal year ending March
31, 2017 is set at 70 yen, which combines a 30-yen interim
dividend with a 40-yen year-end dividend.

2.0 ％ YoY

0

3/20163/2017(117th term) (118th term)

40,790(Year ended
March 31)

Dividends per share
(Yen)

80

39,04740

20,00003/2017

forecasts for the Group’s operating results for the year
ending March 31, 2018. When such forecasts for next
fiscal year’s results become possible, we will promptly
disclose them. Additionally, an update will be provided at
the time of our first quarter earnings release.

Cash and cash equivalents at
the end of the year

205,859

110,000

0-3,0003/2016

Total assets(Millions of yen)

220,000

6,734

7,000

0

3/201631

7,000

Profit attributable to ownersof parent

address overheated real estate investment. Added to this is
the outlook for the U.K.’s negotiations on leaving the E.U.
and rising geopolitical risks from Syria and N. Korea, all ofwhich are factors that increase uncertainty.
The Japanese economy is expected to continue its
modest recovery on the back of strong employment andincreasing signs of recovery in investment in the construction
sector ahead of the Olympic Games. There is still the risk,
however, of effects from the rising uncertainty in the global
economy.
The steel market is showing more frequent instances ofanti-dumping and other protectionist measures in overseas
markets, as well as considerable volatility in steel-making
materials prices, which supports predictions that changes
in the market environment will continue to be pronounced.
Inside Japan, despite an expected recovery in domestic
demand accompanying the upward trend in industrial
production and in construction spending, challenging
headwinds are forecast due to continually high zinc prices
and increasing upward pressure on the price of hot rolled
steel sheets, which are our main raw material.
From spring of this year, the overseas steel market
rapidly softened due to increased production in the Chinese
steel industry, while volatility returned to metallurgical coalprices after cyclone damage in Australia, which made theoutlook for steel market conditions extremely opaque.
Consequently, it is difficult at present to prepare reliable

Down

3/2016

4.3％ YoY
3/2017(117th term) (118th term)(Year ended
March 31)

70
50

0

3/20163/2017(117th term) (118th term)(Year ended
March 31)

32

Financial Information
Consolidated Financial Statements
Consolidated Balance Sheet(Millions of yen)

The year ended March 31, 2016
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable
Securities
Merchandises and finished goods
Work in process
Raw materials and supplies
Deferred income taxes
Other current assets
Allowance for doubtful receivables
Total current assets
Non-current assets
Property, plant and equipment:
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Other
Accumulated depreciation
Other, net
Property, plant and equipment, net
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred income taxes
Other
Allowance for doubtful receivables
Total investments and other assets
Total non-current assets
Total assets

33(Millions of yen)

The year ended March 31, 2017

The year ended March 31, 2016

The year ended March 31, 2017

Liabilities
46,502
37,680100
12,174
3,296
9,718
546
7,647
(111)
117,553

40,761
41,103−
11,404
3,457
10,646
528
6,400
(113)
114,188

58,636(42,332)
16,304
129,761(116,305)
13,456
18,385
1,499
(462)
1,037
658
12,036(11,240)
796
50,63759,869(43,213)
16,656130,699(117,628)
13,071
18,685
1,408
(529)
879
765
11,993(11,163)829
50,888

14
1,273
1,287

10
1,416
1,427

34,796
5
782
796
(0)
36,38088,306
205,859

42,574
3
403
492
(0)
43,474
95,789209,977

Current liabilities
Notes and accounts payable – trade16,37417,800

Short-term loans

7,153

669

Current portion of finance lease obligations
Income taxes payable
Provision for bonuses to employees

173

177

1,808

2,770

938

1,052

Other

6,648

7,978

Total current liabilities

33,09530,448Long-term liabilities
Finance lease obligations, less current portion

930

743

2,672

3,942

Deferred income taxes on land revaluation reserve

856

856

Provision for retirement benefits for directors and audit & supervisory board members

112

94

10,637

8,278

Deferred income taxes

Liability for retirement benefits
Other

4,155

4,240

Total long-term liabilities

19,364

18,15452,46048,603

Common stock

23,22023,220Capital surplus

21,432

20,388Retained earnings

90,58995,664

Treasury stock(10,399)(12,199)

Total shareholders’ equity

124,844

127,074

Unrealized holding gain on securities

10,755

14,477

Land revaluation reserve

1,626

1,626

Translation adjustments

1,860

1,580

Retirement benefit liability adjustments(1,937)(1,516)

Total accumulated other comprehensive income

12,305

16,167

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income

Stock acquisition rights

177

205

Non-controlling interests

16,071

17,927

Total net assets

153,399

161,374

205,859

209,977

Total liabilities and net assets

34

Financial Information
Consolidated Financial Statements

Consolidated Statement of Operations(Millions of yen)

The year ended March 31, 2016(

From April 1, 2015 toMarch 31, 2016）

Consolidated Statement of Changes in Net Assets (From April 1, 2016 to March 31, 2017)
Shareholders’ equity

The year ended March 31, 2017(

From April 1, 2016 to
March 31, 2017）

Commonstock

Unrealized
Total
shareholders’ holding gain (loss)
on securities
equityCapitalsurplusRetainedearnings

Treasurystock,
at cost21,432

90,589(10,399)Land
revaluation
reserve

Translation
adjustments

Retirement
benefit liability
adjustments

1,860(1,937)

Non-

Stock

Total accumulatedacquisition controlling Total net
otherinterests assets
rightscomprehensive
incomeNet sales

159,214

154,221

Balance at April 1, 2017

Cost of sales

134,977

123,884

Changes of items during period

Gross profit

24,23630,336

Cash dividends(1,660)(1,660)(1,660)

Selling, general and administrative expenses

16,933

17,168

Profit attributable to ownersof parent for the year

6,734

6,734

6,734

Operating income

7,302

13,168Non-operating income

2,327

1,579

(1,810)(1,810)(1,810)Non-operating expenses

1,185

984

9

8

8

Ordinary profit

8,444

13,763(1,048)(1,048)(1,048)Extraordinary income

92

Extraordinary losses

8,558

965

6

6

6

Profit (loss) before income taxes(104)

12,8000

0Income taxes : current

2,941

4,126

Income taxes : deferred

(332)

73

Total income taxes

2,608

4,199

Profit (loss)(2,712)

8,600

58

1,866

(2,771)

6,734

Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent

23,220Acquisition of treasury stock(1)

Disposition of treasury stock
Increase due to change inownership interest resulting
from capital increase of aconsolidated subsidiary
Increase due to change inownership interest resulting
from acquisition of investments
in a consolidated subsidiary
Reversal of land revaluation
reserve

124,8440

Net changes of items otherthan shareholders’ equity
Total changes of items during period
Balance at March 31, 2017

10,755

1,626

Consolidated Statement of Operations
April 1, 2015 to( From）March 31, 2016

177

16,071

(279)

420

3,861

27

1,855

5,744

ー

(1,044)

5,075(1,800)

2,230

3,721

(0)

(279)

420

3,861

27

1,855

7,975

23,22020,38895,664(12,199)

127,074

14,477

1,626

1,580

(1,516)

16,167205

17,927

161,374(Millions of yen)

The year ended March 31, 2016

The year ended March 31, 2017
April 1, 2016 to( From）March 31, 2017

The year ended March 31, 2017
April 1, 2016 to( From）March 31, 2017

Cash flows from operating activities

19,404

10,218Cash flows from investing activities(10,278)(1,559)Cash flows from financing activities(3,265)(9,897)

Effect of exchange rate changes on cash and cash equivalents

(268)

(503)

Profit (loss)(2,712)8,600

Net increase in cash and cash equivalents

5,592(1,742)Other comprehensive income (loss)(5,307)

3,322

Cash and cash equivalents at the beginning of the year

35,19740,79011,923

Cash and cash equivalents at the end of the year

40,79039,047

Comprehensive income (loss)(8,020)

153,399(0)

Consolidated Statement of Cash Flows(Millions of yen)

The year ended March 31, 2016

12,305

3,721

April 1, 2015 to( From）March 31, 2016

35

(Millions of yen)

Accumulated other comprehensive income

36Corporate Profile

Stock Information(As of March 31, 2017)

Corporate Profile

Directors and Executive Officers (as of June 22, 2017)

Principal Shareholders
Name

Company name

Yodogawa Steel Works, Ltd.

Directors

Established

January 30, 1935

Yoshitsugu Kokubo

Capital23,220,815,228 yen

Chairman and
Representative Director

Employees

1,156

President andRepresentative Director

Takaaki Kawamoto

Major Offices & Plants
Head office

4-1-1, Minamihonmachi, Chuo-ku,
Osaka 541-0054, Japan
81-6-6245-1111

Tokyo branch

1-3-7, Shintomi, Chuo-ku, Tokyo 104-0041, Japan
81-3-3551-1171

Sales offices

Sapporo, Morioka, Sendai Regional, Niigata, Nagano,Takasaki, Tokyo Regional, Yokohama, Shizuoka,
Hokuriku, Nagoya Regional, Osaka Regional, Kobe,
Okayama, Hiroshima, Takamatsu Regional, Kochi,
Yahata, Fukuoka Regional, Kagoshima, Okinawa

PlantsOsaka (Osaka prefecture), Kure (Hiroshima prefecture),
Ichikawa (Chiba prefecture), Fukui (Fukui prefecture),
Izumiotsu (Osaka prefecture), Himeji (Hyogo prefecture)

Main Affiliated Companies

Takada Kozai Kogyo Co., Ltd.

Executive Officers

Director

Senior Managing
Executive Officer

Toyomi Omori

Director

Managing Executive
Officer

Satoshi Nitta

Steel sheet processing, sales, andwarehousing

1,094,000

3.63

Resona Bank, Limited.

1,068,400

3.55

Mizuho Bank, Ltd.

1,062,105

3.52

Yodoko Partners’ Shareholding Association

908,742

3.01

Japan Trustee Services Bank, Ltd. (Trust Account)875,900

2.91

The Master Trust Bank of Japan, Ltd. (Trust Account)721,400

2.39

Director

Hiroshi Okamura

Nippon Life Insurance Company

618,637

2.05

Managing Executive
Officer

Makoto Omori

POSCO

600,000

1.99

Senior Executive Officer

Takamasa Watanabe

JFE Steel Corporation

587,377

1.95

Sadoshima Corporation

564,800

1.87

8,101,361

26.92

Senior Executive Officer

Tadashi Hattori

Senior Executive Officer

Yoichiro Nakano

Senior Executive Officer

Yoshihiro Kawamoto

Senior Executive Officer

Toshio Kumamoto

Executive Officer

Nobusuke Kuzuo

Executive Officer

Yasunori Osumi*Toshikazu Saeki and Hiroshi Okamura are both Outside Directors inaccordance with the Companies Act.

Total

Share Ownership by Category

Audit & Supervisory Board Member (full-time)

Maomi Hayashi

Audit & Supervisory Board Member (full-time)

Shiro Morioka

Audit & Supervisory Board Member

Osamu Utsuro
Tomotaka Iwata

Steel sheet manufacturing and sales
Steel wholesaling and transportation

Audit & Supervisory Board Member

Keiyo Tekko Futo Co., Ltd.

Distribution and warehousing

Yodoko Kohatsu Co., Ltd.

Golf course and other management andreal estate leasing*Osamu Utsuro and Tomotaka Iwata are both Outside Audit and Supervisory
Board Members in accordance with the Companies Act.

Yodogawa-Shengyu (Hefei)
High-Tech Steel Co., Ltd.

Steel sheet manufacturing and sales

PCM Processing (Thailand) Ltd.

Prepainted steel sheet manufacturing,processing, and sales

Financial institutions

Securities corporations

0.84％

27.53％

Treasury stock

16.03％

Individuals
and others

35,837,230
shares

11.89％

Overseas
investors

Other companies
in Japan

18.83％

24.88％The Company holds 5,746,265 shares as treasury stock and is not included in the above list ofmajor shareholders. Treasury stock (5,746,265 shares) is deducted from calculations of theshareholding ratio.

Movements in Stock Price and Trading Volume■Trading volume(Thousand shares)

Yodoko Shoji Co., Ltd.

Sadoshima Corporation

Mizuho Trust & Banking Co., Ltd.

Toshikazu Saeki

Sheng Yu Steel Co., Ltd.

Equity-Method Affiliated Companies

Shares Owned Shareholding Ratio (%)

Director

Audit & Supervisory Board Members

Consolidated Subsidiaries

37(As of March 31, 2017)

Stock price

(Yen)

5,000

3,500

4,000

2,800

3,000

2,100

2,000

1,400

1,000

700
0

0

3/20119/20113/20129/20123/20139/20133/20149/20143/20159/20153/20169/20163/2017*Data before the 117th Term have been adjusted to account for share consolidation.

Steel wholesaling38

Shareholder Reminders
Account closing date

March 31

Ordinary general meeting ofshareholders

June

Record dateOrdinary general meeting of shareholders,
year-end dividend March 31
Interim dividend September 30
Other dates shall be in accord withpre-announced schedules.

Number of shares per trading unit 100 shares
Shareholder registryadministrator & special accountadministrator

Mizuho Trust & Banking Co., Ltd.

Address of shareholder
registry administrator's
office of operations

1-2-1, Yaesu, Chuo-ku, Tokyo 103-8670,
Japan
Mizuho Trust & Banking Co., Ltd.
Method of public notice

Stock transfer
agency department

Electronic notice
Please see our website
http://www.yodoko.co.jp/english/index.html

Mizuho Trust & Banking Co., Ltd.
Stock Transfer Agency Department Contact

Yodogawa Steel Works, Ltd.
4-1-1 Minami-honmachi, Chuo-ku, Osaka
541-0054, Japan
Tel. (06) 6245-1111 (main switchboard)

http://www.yodoko.co.jp/

Tel.
OnlinePostal address

0120-288-324 (toll free in Japan)
http://www.mizuho-tb.co.jp/daikou/
Stock Transfer Agency Department
Mizuho Trust & Banking Co., Ltd.
2-8-4 Izumi, Suginami-ku, Tokyo 168-8507, Japan

Procedures Regarding Stock
Stock handling procedures differ depending on whether shares are held in asecurities brokerage account or in a special account. Please see below forwhom to contact in each case.
Shares held in a securities brokerage accountProcedures and information

Contact• Selling or purchasing odd-lot shares• Change of name, address, etc.
• Changes to dividend receipt and payment

Securities brokerage managing
your account• Information on mail and returned mail• Information on unpaid dividends*• Information on other stock handlingprocedures

Shareholder
registryadministrator

Mizuho Trust &Banking Co., Ltd.
Stock Transfer Agency
Department

Shares held in a special accountProcedures and information

Contact• Selling or purchasing odd-lot shares• Change of name, address, etc.
• Changes to dividend receipt and payment

Specialaccount
managementadministrator

Mizuho Trust &Banking Co., Ltd.
Stock Transfer Agency
Department• Information on mail and returned mail• Information on unpaid dividends*• Information on other stock handlingprocedures

Shareholder
registryadministrator

Mizuho Trust &Banking Co., Ltd.
Stock Transfer Agency
Department*Payment of unpaid dividends can be handled at the Mizuho Bank, Ltd. Head Office or at
one of the branch offices.