Consolidated Financial Results for the Year Ended March 31, 2021 (FY2020)
Consolidated Statement of Income(Unaudited IFRS Results)

FY2019(¥ billion)

Overview of Consolidated Results for FY2020
Business environment

ChangeFY20202,045.8
104.5

1,666.5
83.1-379.3-21.4(5.1%)(5.0%)(-0.1%)

-81.9
0.3
22.9
4.8

-71.1
-1.3
10.7
0.6

10.8
-1.6
-12.2
-4.2

0.4

3.2

2.8

0.0

-0.9

-0.9

0.4
-3.9

0.8
-1.5

0.4
2.4

4.7

2.9

-1.8

29.3
-7.3
22.0

15.7
-6.6
9.1

Non-controlling interests

2.5

2.5

-13.6
0.7
-12.9
-12.9
0.0

For reference: Revenue

1,786.2

Sales*¹
Gross profit(Gross profit ratio)
Selling, general and administrative expenses
Provision for doubtful receivables
Operating income*¹
Gains on investments
Gains (losses) on disposal and sale ofproperty, plant and equipment and others
Impairment losses on property, plant andequipment and others
Other income (expense)
Finance expense
Share of profit of investments accounted forusing the equity method
Profit before tax
Income taxes
Profit for the year
Owners of the parent19.5

June 9, 2021
Metal One Corporation

6.6

In the fiscal year under review, the global economy deteriorated sharply due to restrictions on economic activities to control the spread of COVID-19 butlater began to recover once restrictions were eased. However, many countries are experiencing new waves of infections, and the global economy’s pace ofrecovery has slowed.
In Japan, consumption slumped because of the pandemic, then showed signs of recovery thanks to growing exports and economic measures; only for theeconomy to stall due to another wave of infections.

Business performance
Regarding the business environment, global steel demand declined year on year due to the aforementioned global economic slowdown caused by theCOVID-19 pandemic. Demand in Japan also fell due to stagnating economic activity. Steel prices were weak due to this suppressed demand.
In this business environment, the Metal One Group focused on various strategies aimed at developing personnel, shifting management resources, andrevising our portfolio, including withdrawing from unprofitable businesses, in line with its medium-term management plan Management Strategy 2021.
Despite our best efforts as describe above, due to the business environment worsening more than anticipated, the Metal One Group’s consolidated
performance declined from that of the previous fiscal year, falling to ¥1,666.5 billion in sales, a year-on-year decrease of 18.5%. Profit for the year
attributable to owners of the parent dropped to ¥6.6 billion, a 66.2% decrease.

Highlights
1. Sales and gross profit
Sales decreased ¥379.3 billion, compared to the previous fiscal year, totaling ¥1,666.5 billion due to a decline in business volume and lower averageunit costs.
As a result of lower sales and the weaker gross profit ratio, gross profit fell ¥21.4 billion, totaling ¥83.1 billion.

2. Selling, general and administrative expenses
Due mainly to efforts to cut business expenses while business transactions declined overall, costs decreased ¥10.8 billion year on year, totaling ¥71.1billion.

3. Gains on investments and Gains (Losses) on property, plant and equipment
Following a temporary surge in the previous fiscal year, integrated profit of Metal One Sumisho Tubular Products returned to normal levels. Dueprimarily to this decline, gains on investments decreased ¥4.2 billion over the previous fiscal year to ¥0.6 billion.

4. Gains (losses) on disposal and sale of property, plant and equipment and others

1,445.8

Due in part to the reduction and sale of assets mainly at Group companies, gains on disposal and sale of property, plant and equipment increased¥2.8 billion year on year to ¥3.2 billion.

*1 Sales and Operating income have been disclosed in accordance with Japanese standards for presentation

5. Business results by transaction type
The Group’s domestic sales reached ¥843.4 billion (51% of total sales), a year-on-year decrease of ¥178.0 billion. Overseas sales reached ¥823.1billion (49% of total sales), a year-on-year decrease of ¥201.3 billion.

Consolidated Statement of Financial Position

Liabilities and equityAssets(¥ billion)

Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other current assets
Non-current assets
Property, plant and equipment
Intangible assets and goodwill
Other non-current assets
Total assets
Current liabilities
Borrowings
Trade and other payables
Other current liabilities
Non-current liabilities
Borrowings
Other non-current liabilities
Total liabilities
Equity attributable to owners of the parent
Common stock and additional paid-in capital

Retained earnings
Other components of equity
Non-controlling interests
Total equity
Total liabilities and equity

As of March 31,
2020

As of March 31,
2021

746.7
31.4
468.3
224.3
22.7
266.5
116.4
11.7
138.4
1,013.2
513.3
254.3
234.3
24.7
90.9
65.9
25.0
604.2
374.0
151.1
201.6
21.3
35.0
409.0
1,013.2

666.4
17.7
431.5
190.326.9
242.0
109.8
11.4
120.8
908.4
418.0
146.4
246.6
25.0
81.5
57.8
23.7
499.5
372.5
151.0
201.0
20.5
36.5
408.9
908.4

Change

-80.3
-13.7
-36.8
-34.0
4.2
-24.5
-6.6
-0.3
-17.6
-104.8-95.3-107.9
12.3
0.3
-9.4
-8.1
-1.3
-104.7
-1.5
-0.1
-0.6
-0.8
1.5
-0.1
-104.8

6. Total assets and total equity
Total assets decreased ¥104.8 billion, compared to the previous fiscal year end, totaling ¥908.4 billion due to a decline in trade and other receivables,inventories, and matching borrowings coinciding with a drop in business transactions.
Additionally, total equity fell ¥0.1 billion to ¥408.9 billion due mainly to a decrease in other components of equity accompanying a depreciation of
the Japanese yen and sales of investment securities.

7. Interest-bearing debt
Due to a decrease in trade and other receivables in connection with lower sales, the balance of borrowings was ¥204.3 billion, a ¥115.9 billion

Comprehensive Income
FY2019Owners of theparent(¥ billion)

Profit for the year
Gains (Losses) on other investments designated as FVTOCI
Exchange differences on translating foreign operations
Other

Comprehensive income

Number of Consolidated
Subsidiaries and Affiliates

Subsidiaries
91 (―)

Affiliates
34 (-3)

Non-controllinginterests

FY2020Total(A)

Owners of theparent

Non-controllinginterests

Change(B− A)

Total(B)

19.5

2.5

22

6.6

2.5

9.1

-12.9

-3.8
-5.5
0
10.2

-0.3
-1.4
0
0.8

-4.1
-6.9
0
11

-1.1
3.4
0.3
9.2

-0.3
0.8
0.1
3.1

-1.4
4.2
0.4
12.3

2.7
11.1
0.4
1.3

Consolidated Financial Indicators
March 31, 2020 March 31, 2021

Total(Consolidated)

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

Shareholders’ equity ratio

36.9%

41.0%

Net D/E ratio

0.8

0.5

Shareholders’ equity ratio = Equity attributable to owners of the parent ÷ Total
assets Net
D/E ra o = (Borrowings − Cash and cash equivalents) ÷Equity attributable to owners of the parent