June 10, 2022
Metal One Corporation

Consolidated Financial Results for the Year Ended March 31, 2022 (FY2021)
Consolidated Statement of Income(¥ billion)
Revenue
Gross profit(Gross profit ratio)
Selling, general and administrative expenses
Provision for doubtful receivables
Operating income*¹
Gains (losses) on investments
Gains (losses) on property, plant and equipment
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 parent

Overview of Consolidated Results for FY2021(IFRS Results)
FY2020ChangeFY2021Business environment

1,417.5
83.1(5.9%)
-71.1
-1.3
10.7
0.6

2,007.8
119.0(5.9%)
-76.4
-0.7
41.9
-5.1

590.3
35.9
(0.0%)
-5.3
0.6
31.2
-5.7

In the fiscal year under review, the global economy recovered from the economic slowdown that accompanied
the spread of COVID-19, but the pace of recovery was slowed by significant inflation over a broad range ofcategories. This was spurred mainly by pandemic-related restrictions on movement in numerous countries, risingenergy prices, and supply chain disruptions.
In Japan, although there were signs of recovery in economic activities, which had slumped because of thepandemic, the recovery remained partial. Production activities faced limitations related to the effects oflockdowns imposed by emergency declaration, the global semiconductor shortage, rising raw material prices,and supply chain disruptions.

2.4

-1.3

-3.7

0.8
-1.5

1.0
-2.7

0.2
-1.2

2.9

10.4

7.5

15.7
-6.6
9.1

44.3
-11.9
32.4

28.6
-5.3
23.3

Regarding the business environment, global steel demand increased year on year due to a restart of economicactivities. Demand also rose in Japan with the relative return to normal, after the huge drop in the previous fiscal
year, but the recovery remained modest overall. Steel prices increased due to rising raw material prices.
In this business environment, the Metal One Group focused on various strategies aimed at developing personnel,
shifting management resources, and optimizing our portfolio, including withdrawing from unprofitable businesses,
in line with its medium-term management plan Management Strategy 2021.
Amid the aforementioned efforts and rising steel market, the Metal One Group’s consolidated performanceincreased from that of the previous fiscal year, with revenue growing to ¥2,007.8 billion, a year-on-year increaseof 41.6%. Profit for the year attributable to owners of the parent rose to ¥28.1 billion, a 325.8% increase.

6.6

28.1

21.5

Non-controlling interests
2.5
4.3
1.8
*1 Operating income has been disclosed in accordance with Japanese standards for presentation

AssetsLiabilities and equityHighlights
1. Revenue and gross profit
Due mainly to a rising steel market, revenue increased ¥590.3 billion, compared to the previous fiscal year,
totaling ¥2,007.8 billion (Japan-related: ¥766.2 billion; Overseas-related: ¥1,241.6 billion). Gross profit rose
¥35.9 billion, totaling ¥119.0 billion.
2. Selling, general and administrative expenses
Due to economic activities returning to normal, costs increased ¥5.3 billion year on year, totaling ¥76.4billion.

Consolidated Statement of Financial(¥ 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

Business performance

As of March 31, As of March 31,
2021
2022
666.4
884.8
17.6
13.5
431.3514.2
188.9
322.0
28.6
35.0
242.0
227.0
97.8
96.9
11.4
10.9
132.8
119.1
908.4
1,111.8
418.0
599.2
146.4
278.5
246.6
294.6
24.9
26.1
81.5
74.1
57.8
53.0
23.7
21.0
499.5
673.3
372.5
400.3
151.0
151.2
199.9
220.1
21.6
29.0
36.5
38.2
408.9
438.5
908.4
1,111.8

Change
218.4
-4.1
82.9
133.1
6.4
-15.0
-0.9
-0.5
-13.7
203.4
181.2
132.1
48.0
1.2
-7.4
-4.8
-2.7
173.8
27.8
0.2
20.2
7.4
1.7
29.6
203.4

3. Gains (losses) on investments and gains (losses) on property, plant and equipment
Due to revising our portfolio, including withdrawing from unprofitable businesses, gains on investments
decreased ¥5.7 billion over the previous fiscal year to a loss of ¥5.1 billion, and gains on property, plant andequipment decreased ¥3.7 billion to a loss of ¥1.3 billion.
4. Share of profit of investments accounted for using the equity method
Due to a rising steel market, equity-method investments in Japan and overseas both performed well, andour share of profit increased ¥7.5 billion year on year to ¥10.4 billion.
5. Total assets
Total assets increased ¥203.4 billion, compared to the previous fiscal year end, totaling ¥1,111.8 billion due
to an increase in trade and other receivables as well as inventories coinciding with a rise in steel prices anda depreciation of the Japanese yen.
6. Interest-bearing debt
Due to an increase in working capital, the balance of borrowings was ¥331.5 billion, a ¥127.3 billion
increase.
7. Total equity
Total equity rose ¥29.6 billion year on year to ¥438.5 billion due mainly to the increase in net income and inother components of equity accompanying the depreciation of the Japanese yen.

Number of Consolidated Subsidiaries and Affiliates

Invested businesses
Companies in Japan and overseas

Total

Subsidiaries
69 (-4)18 (―)
87 (-4)Affiliates Total (Consolidated)
29 (-5)98 (-9)―18 (―)
29 (-5)116 (-9)Note: Figures in parentheses () show changes from the previous year.

Consolidated Financial Indicators
March 31, 2021 March 31, 2022
Shareholders’ equity ratio
Net D/E ratio

41.0%
0.5

36.0%
0.8

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