June 6, 2018
Metal One Corporation

Metal One Corporation and Subsidiaries Consolidated Financial Results for FY2017
Income Statements(In ¥100 million)

Sales*
Gross profit(Gross profit ratio)
Selling, general, and administrative expenses
Provision for doubtful receivables
Operating income*Interest expence-net
Dividend income
Securities gains and losses
Fixed asset gains and losses
Other gains and losses
Equity in earnings (losses) of affiliated companies

Income before income taxes
Income taxes
Net income
Net income attributable to owners of the parent
Net income attributable to noncontrolling interests(Non-audit, international accounting standards)

Outline of Consolidated Results for FY2017

Performance in
FY2017

Performance in
FY201621,1801,168

18,556
1,068

2,624
100(5.5%)(5.8%)-(0.3%)-855-5308-40
144-4
1559356-83
273
234
39-818-23
227-23147
1
1447
288-76
212
182
30-37
1881-170-3-511268-761
52
9

Business environment

Variance*Sales and Operating income have been disclosed according to Japanese standards for presentation methods.

Consolidated Statement of Financial Position

Liabilities and equityAssets(In ¥100 million)

Current assets
Cash and deposits
Accounts receivable
Inventories
Other current assets
Non-current assets
Tangible non-current assets
Intangible non-current assets
Investments and other assets
Total assets
Current liabilities
Accounts payable
Short-term debt
Other current liabilities
Non-current liabilities
Long-term debt
Other
Total liabilities
Equity attributable to owners of the parent
Common stock and additional paid-in capital

Retained earnings, etc.
Other comprehensive cumulative gains or losses

Noncontrolling interests
Total equity
Total liabilities and equity

Performance in
FY2017

Performance in
FY2016

8,254
240
5,497
2,201
316
2,627
1,043
129
1,455
10,881
6,224
2,919
2,940
365
640
418
223
6,864
3,669
1,505
1,810
354
348
4,017
10,881

7,146
255
4,635
1,954
302
2,473
1,021
119
1,333
9,619
5,170
2,641
2,218
312
619
427
192
5,789
3,496
1,508
1,690
298
334
3,830
9,619

The world economy continued to grow slowly during the fiscal year as a result of continued expansion in the U.S. economy, underpinned by improvements in
employment and incomes as well as continuing stability in Europe’s economy coupled with signs of a recovery in China. Japan’s economy also continued to grow slowly
overall, sustained by steady internal and external demand.

Business performance
The environment the Metal One Group faced displayed continuing robust world steel demand, including an increase compared to the year before, and was underpinned
by favorable economic conditions in both advanced and emerging countries. It also remained stable in Japan, as construction demand leading up to the Olympics pickedup steam and other factors such as satisfactory car sales provided support. Steel market conditions trended upward throughout the fiscal year due to stable demand andthe rise of raw materials prices at the start of the year, as well as the impact of China putting a halt to production of ditiaogang (low-quality steel products).
The Metal One Group pursued various strategies in the midst of these business conditions on the basis of the three core concepts of Growth Strategy 2018, our midterm
management plan: business model reforms that differentiate Metal One; growth-driven injections of management resources; and the enhanced consolidated management
platform.
These led to better consolidated Metal One Group performance compared to the previous consolidated fiscal year, with ¥2.118 trillion in sales up 14.1 percent over theprevious year, and ¥23.4 billion in net income attributable to our parent company owners, an increase of 28.4 percent.

Situation with main items
1. Sales and gross profit
Although business volume was nearly flat, sales increased to ¥2.118 trillion—¥262.4 billion more than the previous consolidated fiscal year—thanks to increases inaverage unit prices.
Additionally, although the gross profit ratio declined slightly, gross profits came to ¥116.8 billion, increasing by ¥10 billion compared to the year before due to thesignificant impact of the growth in sales.

2. Selling, general and administrative expenses
Expenses came to ¥85.5 billion, up ¥3.7 billion compared to the previous consolidated fiscal year because of factors such as surges in outsourcing expenses connectedwith corporate mergers and business efficiency improvement at the parent company, newly consolidated affiliates, and increases in operating costs at subsidiaries as aresult of the weaker yen.

3. Securities gains and losses, fixed asset gains and losses
Regarding fixed asset gains and losses, fixed asset impairments at domestic subsidiaries led to a loss of ¥500 million compared to the previous consolidated fiscal year,
producing a decline to minus ¥400 million.
Regarding securities gains and losses, losses on the value of investment securities led to a drop of ¥300 million compared to the previous consolidated fiscal year, to¥400 million.

4. Business results by transaction typeVariance

1,108-15862
247
141542210122
1,262
1,054
278
722
53
21-9
31
1,075
173-3
120
56
14187
1,262

Looking at sales by transaction type, the ¥1.124 trillion in domestic sales was 53 percent of the whole—up ¥117.8 billion compared to the previous consolidated fiscalyear—and the ¥994.1 billion in overseas sales accounted for 47 percent, an increase of ¥144.6 billion over the year before.

5. Total assets and shareholders’ equity
Increases in accounts receivable and payable in connection with higher sales were the main reason that total assets came to ¥1.088 trillion, up ¥126.2 billion compared tothe close of the previous consolidated fiscal year.
Additionally, total net assets excluding noncontrolling interests came to ¥366.9 billion, up ¥17.3 billion compared to the close of the previous consolidated fiscal year,
thanks to factors such as an increase in net income.
As a result, our shareholders’ equity ratio came to 33.7 percent, falling 2.6 percent compared to the close of the previous consolidated fiscal year, but our financial status
remains as sound as ever.

6. Interest-bearing debt
Our loan balance came to ¥335.8 billion, increasing ¥71.3 billion compared to the close of the previous consolidated fiscal year, due to increasing demand for capital inconnection with increases in sales.

Comprehensive Income (Loss) Status
Net income
Net unrealized gains on securities
Foreign currency translation adjustment

Other
Net comprehensive income
Net comprehensive income attributable to owners of the parent
Net comprehensive income attributable to non-controlling interests

Number of Group Companies
Subsidiaries
98（-2）

Total (consolidated)
Affiliates40（-2）
138（-4）

Note: Figures in parentheses ( ) show changes from the previous year.

Performance Performancein FY2017
in FY2016

27377-33
231928930

21284-8
1289
260
30

Variance

61-7-25130290Consolidated Financial Indicators
March 31, 2018 March 31, 2017
Shareholders’ equity ratio

Net D/E ratio

33.7%
0.8

36.3%
0.7

Shareholders’ equity ratio =Total net assets excluding noncontrolling interests ÷ Total assets
Net D/E ratio =(Short-term and long-term debt − Cash and deposit) ÷ Total net assets(excluding noncontrolling interests)