Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy
between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results
for the Year Ended March 31, 2022
[Japanese GAAP]May 10, 2022
Company name: Nakayama Steel Works, Ltd.
Stock exchange listing: Tokyo
Code number: 5408
URL: https://www.nakayama-steel.co.jp/
Representative: Kazuaki Hakomori,President
Contact: Mitsuaki Sakaguchi,Managing Executive OfficerPhone: 06-6555-3035
Scheduled date of Annual General Meeting of Shareholders: June 28, 2022
Scheduled date of commencing dividend payments: June 29, 2022
Scheduled date of filing annual securities report: June 28, 2022
Availability of supplementary briefing material on annual financial results: No
Schedule of annual financial results briefing session: Yes(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 01, 2021 to March 31, 2022)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
Million yen%
Fiscal year ended
March 31, 2022
166,701
50.2
7,250
208.3
6,654
150.0
4,815
104.4
March 31, 2021
110,954
2,351
2,661
2,355
(Note) Comprehensive income:Fiscal year ended March 31, 2022:¥
4,953 million [60.1%]
Fiscal year ended March 31, 2021:¥
3,094 million [-%]
Basic earnings per Diluted earnings per Rate of return onshareshareequityYen
Fiscal year ended
March 31, 2022
88.96
March 31, 2021
43.52
(Reference) Equity in earnings (losses) of affiliated companies:

Yen

Ordinary profit tototal assets ratio

%

5.6
2.8
Fiscal year ended March 31, 2022:
Fiscal year ended March 31, 2021:

Operating profit tonet sales ratio

%%

5.0
2.2
¥
¥

4.3
2.1
135 million
126 million(2) Consolidated Financial Position
Total assets
As ofMarch 31, 2022
March 31, 2021
(Reference) Equity:

Net assets

Million yen

143,618
122,982
As of March 31, 2022:
As of March 31, 2021:

Capital adequacy ratio

Million yen¥¥

88,931
84,35688,931 million
84,356 million

Net assets per share%

Yen

61.9
68.6

1,642.72
1,558.22(3) Consolidated Cash Flows
Cash flows fromoperating activities
Fiscal year ended
March 31, 2022
March 31, 2021

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at the endof period

Million yen

Million yen

Million yen

Million yen(8,756)
4,127(2,308)(2,652)

8,388(1,682)

15,74518,308

2. Dividends
Annual dividends
1st2nd3rdquarter-end quarter-end quarter-end

Year-end

Total

Total
dividends

Payoutratio(consolidated)

Dividends
to netassets(consolidated)

Fiscal year ended

YenYenYenYen

Yen

Million yen%%March 31, 2021

-

3.00

-

3.00

6.00

376

13.8

0.4

March 31, 2022

-

4.00

-

12.00

16.00

974

18.0

1.0

-

6.00

-

14.00

20.00

Fiscal year ending
March 31, 2023

29.3

(Forecast)(Note) Breakdown of the year-end dividend for the fiscal year ended March 31, 2022 :Commemorative dividend- yenSpecial dividend- yen
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 01, 2022 to March 31, 2023)(% indicates changes from the previous corresponding period.)
Profit attributable Basic earnings perNet sales
Operating profit
Ordinary profit
to owners of parent
shareMillion yen

Six months ended
September 30, 2022
Full year% Million yen% Million yen% Million yen%Yen

96,00030.9

2,200(5.2)

2,000(3.4)

1,100(13.4)

20.32

200,000

20.0

6,500(10.3)

6,000(9.8)

3,700(23.2)

68.35* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes inscope of consolidation): NoNew(Company name:)
Exclusion:(Company name:)(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
March 31, 2022:
63,079,256 shares
March 31, 2021:
63,079,256 shares2) Total number of treasury shares at the end of the period:
March 31, 2022:
8,942,656 shares
March 31, 2021:
8,942,447 shares
3) Average number of shares during the period:
Fiscal Year ended March 31, 2022:
Fiscal Year ended March 31, 2021:

54,136,692 shares
54,136,999 shares

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 01, 2021 to March 31, 2022)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Fiscal year ended
March 31, 2022
March 31, 2021

Operating profit

Ordinary profit

Net income

Million yen%

Million yen%

Million yen%

Million yen%

125,098
75,272

66.2
-

2,233
(1,174)

-

2,646
(235)

-

2,329
593

292.8
-

Basic earnings per share
Fiscal year ended
March 31, 2022
March 31, 2021

Diluted earnings per share

Yen

Yen

37.09
9.44

-

(2) Non-consolidated Financial Position
Total assets
As ofMarch 31, 2022March 31, 2021
(Reference) Equity:

Net assets

Million yen

112,857
94,919As of March 31, 2022:
As of March 31, 2021:

Capital adequacy ratio

Million yen¥¥

62,54860,63162,548 million
60,631 million

Net assets per share%

Yen

55.4
63.9

995.94965.42

Consolidated Financial Statements
Consolidated Balance Sheets(Million yen)
As of March 31,2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims operating
Merchandise and finished goods
Work in process
Raw materials and supplies
OtherAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
VehiclesAccumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
OtherTotal intangible assets
Investments and other assetsInvestment securities
Retirement benefit asset
Deferred tax assets
Guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

As of March 31,2022

18,32828,746

15,76531,538

4,754

7,386

9,962
2,547
8,122
2,730
(31)
75,16017,3383,284
15,815
1,654(94)92,68831,076(24,379)
6,697
81,288(70,356)
10,931
883
(767)
116
4,011
(3,509)502
23,128
631
(489)
142
255
41,77331,719(24,896)
6,823
88,445(75,453)
12,992838
(772)
66
4,178
(3,686)491
23,033
640
(470)
169
520
44,097

281
281

273
273

2,592
1,134
4
1,873
201
(39)
5,767
47,822
122,982

2,785
1,215
8
2,352
239
(41)
6,559
50,929143,618

(Million yen)
As of March 31,2021
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of bonds payable
Accounts payable - otherAccrued expenses
Income taxes payable
Provision for bonuses
Provision for environmental measures
Provision for loss on disaster
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Provision for environmental measures
Provision for decommissioning and removal
Provision for loss on business of subsidiaries andassociates
Retirement benefit liability
Negative goodwill
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-salesecurities
Deferred gains or losses on hedges
Revaluation reserve for landRemeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

As of March 31,2022

17,391
815
6,352
42
1,650
1,134
325
797
34
15
861
29,421

21,750
1,356
7,674
42
2,040
1,444
1,565
853
9
638
37,375

69
288
3,224
1,001
442
404

27
8,249
3,472
1,001
415
404

81

42

2,562
3
1,127
9,204
38,626

2,577
1,121
17,311
54,686

20,044
7,826
53,850(775)
80,94520,044
7,826
58,364(775)
85,459

981

1,043

0
2,522
(92)
3,411
84,356
122,982

(0)
2,444
(16)
3,471
88,931
143,618

Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Million yen)
For the fiscal year
ended March 31,2021
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Selling expenses
General and administrative expenses
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Amortization of negative goodwill
Share of profit of entities accounted for using equity
methodInsurance claim income
Rental income from real estate
Profit of conserving electricity
Other
Total non-operating income
Non-operating expenses
Interest expenses
Repair expenses
Commission for syndicated loans
Loss on securitization of receivables
Rental expenses
Factory accident related loss
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on extinguishment of tie-in shares
Reversal of provision for loss on business ofsubsidiaries and associates
Gain on sale of non-current assets
Reversal of provision for environmental measures
Reversal of provision for loss on disaster
Gain on sales of scraps
Subsidy income
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment losses
Cancellation penalty
Loss on tax purpose reduction entry of non-current
assets
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred

For the fiscal year
ended March 31,2022

110,954
97,108
13,846

166,701
146,903
19,797

5,518
5,976
11,494
2,351

6,204
6,342
12,547
7,250

46
49
185

54
65
3

126

135

98
66
150
101
826

65
67
48
439

87
23
3
3
148
99
150
516
2,661

113
223
276
132
147
142
1,034
6,654

-

220

68

39

205
69
95
85
70
594

29
27
316

183
138

181
10-

70-

33
426
2,829
555
(81)

11
203
6,767
1,776
176

Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

473
2,355
2,355

1,952
4,815
4,815

Consolidated Statements of Comprehensive Income(Million yen)
For the fiscal year
ended March 31,2021
Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable to non-controllinginterests

For the fiscal year
ended March 31,2022

2,355

4,815

417
0320

62(0)
750(0)

738
3,094

137
4,953

3,094

4,953--Consolidated Statements of Changes in Net Assets
For the fiscal year ended March 31,2021(Million yen)
Shareholders' equity

Balance at beginningof period
Changes duringperiod
Dividends ofsurplus
Reversal ofrevaluation reserve
for landProfit attributable toowners of parent
Purchase of treasury
sharesNet changes initems other thanshareholders' equity
Total changes
during period
Balance at end ofperiod

Share capital

Capital surplus

20,044

7,826

Retainedearnings
51,453

Treasury shares

Total
shareholders'equity(775)

78,548

(487)

(487)

528

528

2,355

2,355
(0)

(0)

--

2,396

(0)

2,396

20,044

7,826

53,850(775)

80,945

Accumulated other comprehensive income
TotalValuation
Remeasurements accumulated Total net assets
difference on Deferred gains or Revaluationof defined
otheravailable-for-sale losses on hedges reserve for land
benefit plans comprehensive
securities
incomeBalance at beginningof period
Changes during
periodDividends ofsurplus
Reversal ofrevaluation reserve
for landProfit attributable toowners of parent
Purchase of treasury
sharesNet changes in
items other thanshareholders' equity
Total changes
during period
Balance at end ofperiod563-

3,050(412)3,201

81,750(487)528
2,355(0)4170(528)

320

209

209

4170(528)

320

209

2,606

981

0

2,522(92)3,411

84,356

For the fiscal year ended March 31,2022(Million yen)
Shareholders' equity

Balance at beginningof period
Changes during
periodDividends ofsurplus
Reversal ofrevaluation reserve
for landProfit attributable toowners of parent
Purchase of treasury
sharesNet changes in
items other thanshareholders' equity
Total changes
during periodBalance at end ofperiod

Share capital

Capital surplus

20,044

7,826

Retainedearnings
53,850Treasury shares

Total
shareholders'equity(775)

80,945

(378)

(378)

77

77

4,815

4,815
(0)

(0)

--

4,514

(0)

4,514

20,044

7,826

58,364(775)

85,459

Accumulated other comprehensive income
Total
Valuation
Remeasurements accumulated Total net assets
difference on Deferred gains or Revaluationof defined
otheravailable-for-sale losses on hedges reserve for land
benefit plans comprehensive
securities
incomeBalance at beginningof periodChanges during
periodDividends ofsurplus
Reversal ofrevaluation reserve
for landProfit attributable toowners of parent
Purchase of treasury
sharesNet changes initems other thanshareholders' equity
Total changes
during period
Balance at end ofperiod981

02,522(92)3,411

84,356(378)77
4,815(0)
61(0)

(77)

75

60

60

61(0)

(77)

75

60

4,574

1,043(0)2,444(16)3,471

88,931

Consolidated Statements of Cash Flows(Million yen)
For the fiscal year
ended March 31,2021
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Increase (decrease) in provision for decommissioning
and removal
Increase (decrease) in provision for environmental
measures
Increase (decrease) in provision for loss on business of
subsidiaries and associates
Interest and dividend income
Interest expenses
Commission for syndicate loan
Gain on reversal of provision for loss on disaster
Loss (gain) on sales of scraps
Subsidy income
Loss (gain) on extinguishment of tie-in shares
Loss on retirement of non-current assets
Loss on tax purpose reduction entry of non-current
assetsCancellation penalty
Loss (gain) on sale of property, plant and equipment
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Other, net
Subtotal
Income taxes refund
Income taxes paid
Payments associated with disaster loss
Gain on sales of scraps
Cancellation penalty paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Subsidies received
Interest and dividends received
Loan advances to subsidiaries and associates
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Redemption of bonds

For the fiscal year
ended March 31,2022

2,829
2,175(5)
(10)
86
(85)

6,767
2,308
10
65
55
119
(75)

(65)

-(114)

(51)

(68)

(39)

(96)
87
3(95)
(85)
(70)
183

(119)
113
276
(220)
181

70

-

138
(203)
(3,071)
1,394
3,579
(795)
(867)
4,912
19
(655)
(96)
85
(138)
4,127

(28)
(5,424)(15,806)
4,989
(954)
(427)
(8,260)
123
(605)
(13)
(8,756)(3,345)
855
70
128
(200)
(160)
(2,652)(2,534)
117
157
(3)
(45)
(2,308)100(1,069)
(42)

5,000
8,650
(4,366)(42)

Dividends paid
Interest paidCommission for syndicate loan paid
Other, net
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting frommerger
Cash and cash equivalents at end of period

(486)
(87)
(3)
(92)
(1,682)(206)
18,514

(379)
(113)
(274)
(85)
8,388
(2,676)18,308-113

18,30815,745