June 6, 2019
Metal One Corporation

Consolidated Financial Results for FY2018
Consolidated Statement of Income(In ¥100 million)

Sales*1
Gross profit(Gross profit ratio)
Selling, general and administrative expenses

Provision for doubtful receivables
Operating income*1
Interest expense-net
Dividend income
Gains on investments
Gains (Losses) on property, plant and equipment and others

Other income (expense)
Share of profit of investments accounted for using the equity method

Profit before tax
Income taxes
Profit for the year
Profit for the year attributable to owners of the parenetProfit for the year attributable to non-controlling interests

For reference: Revenue(Non-audit, based on IFRS)FY2018Outline of Consolidated Results for FY2018

FY2017

Variance

23,087
1,239

21,180
1,168

1,907
71

(5.4%)(5.5%)-(0.1%)-872-7360-611415
3556
392-100
292-855-5
308-40144-4
1559356-83273-17-252-21
0
11
7-10-3
36-17
19254
38

234
39

20-1

19,867 *2*1 Sales and Operating income have been disclosed according to Japanese standards for presentation methods.

Consolidated Statement of Financial PositionLiabilities and equityAssets(In ¥100 million)

Current assets
Cash and deposits
Trade receivables
Inventories
Other current assets
Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Total assets
Current liabilities
Trade payables
Short-term borrowings
Other current liabilities
Non-current liabilities
Long-term borrowings
Other non-current liabilities
Total liabilities
Equity attributable to owners of the parent
Common stock and additional paid-in capital

Retained earnings
Accumulated other comprehensive income

Non-controlling interestsTotal equity
Total liabilities and equity

8,810
179
5,391
2,503
737
2,517
1,026
102
1,389
11,327
6,423
2,889
2,968
566
778
576
202
7,200
3,761
1,504
1,948
309
365
4,127
11,327FY2017

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
10,881Business performance
Regarding the environment our corporate group encountered, global steel demand rose compared to the previous year, underpinned by the robust U.S.
economy and the expansion of emerging economies. The tone remained positive in Japan as well due to construction demand leading up to the Olympics
and robust car sales. Although there were concerns regarding the impact that U.S.–China trade friction would have on steel prices, they rose graduallyin tandem with rising raw material prices.
In this business environment, the Metal One Group focused on various strategies based on our Growth Strategy 2018 midterm management plan’s threecore concepts, business model reforms that differentiate Metal One from our rivals, the growth-driven injection of management resources, and enhancing
our consolidated management platform.
As a result, Metal One’s consolidated group performance this fiscal year exceeded that of last year. Comparing to previous fiscal year, we reached¥2,308.7 billion in sales, a 9.0 % increase, and profit for the year attributable to owners of the parent was ¥25.4 billion, a 8.5% increase.
Situation with main items
1. Sales and gross profit
Increase in business volume along with higher average unit costs, led sales to increase by ¥190.7 billion compared to previous fiscal year, reaching¥2,308.7 billion.
Despite a slight decline in our gross profit ratio, the significant impact of the rise in sales led gross profit to increase by ¥7.1 billion compared toprevious fiscal year, reaching ¥123.9 billion.
2. Selling, general and administrative expenses
Due to a consolidation of an U.S. subsidiary in the second half of the previous fiscal year and an increase in freight rates owing to soaring transportation
costs in North and Central America, costs increased by ¥1.7 billion compared to previous fiscal year, reaching ¥87.2 billion.
3. Gains on investments, Gains (Losses) on property, plant and equipment and others
Due to gain on negative goodwill, gains on investments increased by ¥1.1 billion compared to previous fiscal year, reaching ¥1.5 billion.
Due to gains from sales of fixed assets among domestic subsidiaries, fixed asset gains increased by ¥0.7 billion compared to the previous fiscal year,reaching ¥0.3 billion.

*2 Subject to disclosure from this fiscal year in connection with the application of IFRS 15, Revenue from contracts with customers

FY2018Business environment
U.S. domestic demand remained robust during this fiscal year in an environment featuring improvements in employment and income. However, Europeexperienced a loss of momentum, primarily in the automotive sector as a result of Germany’s adoption of exhaust emissions regulations. China’s growthrate also declined as a result of concerns about the future in connection with U.S.–China trade friction. Overall, the expansion in the global economy isslowing down.
Meanwhile, although Japan’s economy experienced temporary negative repercussions as a result of natural disasters such as typhoons and earthquakes,
sentiment remained upbeat due to outlays related to the Olympics and Paralympics and increased capital expenditures focused on saving labor.

Variance

556-61-106
302
421-110-17-27-66
446
199-3028
201138
158-21
336
92-1
138-4517110
446

4. Business results by transaction typeAssessing by type of transaction, consolidated domestic sales of ¥1,171.4 billion (51% of the total, increased by ¥47.5 billion compared to previous fiscalyear), while overseas sales of ¥1,137.3 billion (49% of the total, increased by ¥143.2 billion compared to previous fiscal year).
5. Total assets and total equity
Increment in inventories due to growth in business transactions was the main reason for total assets to increase by ¥44.6 billion compared to previous
fiscal year end , reaching ¥1,132.7 billion.
Additionally, an increase in profit of the year led total equity to increase by ¥11.0 billion compared to previous fiscal year end, reaching ¥412.7 billion.
As a result, our shareholders’ equity ratio fell by 0.5% to 33.2% compared to previous fiscal year end. Despite these factors, a stable financial status ismaintained.
6. Interest-bearing debt
Due to increases in demand for working capital in connection with more robust business, borrowings balance reached ¥354.4 billion, increased by ¥18.6
billion compared to previous fiscal year end on a consolidated basis.

Comprehensive Income (Loss) Status

FY2018
Owners of theparent（In ¥100 million）

Profit for the year

FY2017

Npn-controlinginterests

Total(A)

Owners of theparent

Npn-controlinginterests

Total(B)

Variance(A-B)

254

38292

234

39273

19

Gains(Losses) on other investments designated as FVTOCI-31-1-32

76

177-109

Exchange differences on translating foreign operations-103-7-22-10-33

26

Other

Comprehensive income

Number of Group Companies
Subsidiaries

94（-4）

Affiliates Total (consolidated)
36（-4）
130（-8）

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

000

102-2

213

40253

289

30319-66

Consolidated Financial Indicators
March 31, 2019 March 31, 2018
Shareholders’ equity ratio

Net D/E ratio

33.2%
0.9

33.7%
0.8

Shareholders’ equity ratio =Equity attributable to owners of the parent ÷ Total assets
Net D/E ratio =(Short-term and long-term borrowings − Cash and deposits) ÷Equity attributable to owners of the parent