August 4, 2023

Summary of the Consolidated Financial Results for the First Quarterof the Fiscal Year Ending March 31, 2024 (FY3/24)(Three Months Ended June 30, 2023)[Japanese GAAP]

Company name:

Yodogawa Steel Works, Ltd.
Listing: Tokyo Stock Exchange
5451
URL: https://www.yodoko.co.jp/english/
Satoshi Nitta, President and Representative Director
Takayuki Deguchi, General Manager of IR Department
Tel: +(81)6-6245-1113
Scheduled date of filing of Quarterly Report:
August 10, 2023
Scheduled date of payment of dividend:–
Preparation of supplementary materials for quarterly financial results:
None
Holding of quarterly financial results meeting:
None
Stock code:
Representative:
Inquiries:(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Quarter (April 1, 2023 to June 30, 2023) of FY3/24(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales

Operating profit

Millions of yen% Millions of yen% Millions of yen

Three months ended Jun. 30, 2023
51,062(11.4)
2,893(28.2)
Three months ended Jun. 30, 2022
57,632
30.8
4,027
30.4
Note: Comprehensive income (millions of yen): Three months ended Jun. 30, 2023:
Three months ended Jun. 30, 2022:
Diluted net income
Net income per shareper share
Yen

Three months ended Jun. 30, 2023
Three months ended Jun. 30, 2022

Total assets

Net assets

Millions of yen

252,250251,057

Reference: Shareholders’ equity (millions of yen):
As of Jun. 30, 2023:
182,686

As of Mar. 31, 2023:

Yen%(39.7)
35.9

Shareholders’ equity ratio%

205,510
201,906

2Q-end72.4
71.6

179,673

2. Dividends
1Q-end

2,017
3,343

69.68
115.57

Millions of yen

As of Jun. 30, 2023
As of Mar. 31, 2023

% Millions of yen

3,734(37.5)
5,978
43.9
5,727 (up 80.6%)
3,172 (down 25.0%)

Yen

69.87
115.95(2) Consolidated financial position

Profit attributable toowners of parent

Ordinary profit

Yen

Dividend per share
3Q-endYen

Year-end

Total

Yen

Yen

Fiscal year ended Mar. 31, 2023
–
40.00
–
71.00
111.00Fiscal year ending Mar. 31, 2024–
Fiscal year ending Mar. 31, 2024
40.00
–
–
–
(Forecast)
Note: Revisions to the most recently announced dividend forecast: Yes
There is currently no dividend forecast for the fiscal year ending March 31, 2024. For further details, please refer to the press release
dated today (August 4, 2023) about earnings forecast and dividend forecast (Japanese version only).

3. Consolidated Forecasts for FY3/24 (April 1, 2023 to March 31, 2024)
Net sales
Millions of yen

Operating profit%

Millions of yen%(Percentages represent year-on-year changes)
Profit attributable to
Net income
Ordinary profit
owners of parent
per share

Millions of yen

First half
102,000 (13.9)
4,500 (45.4)
5,600
Full year–––––
Note: Revisions to the most recently announced consolidated earnings forecast: Yes%(48.9)–

Millions of yen

3,000
–

%

(48.8)–

Yen

103.91–

No consolidated forecast for the fiscal year ending March 31, 2024 is shown because of the difficulty of determining reliable forecast. For
further details, please refer to“1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated
Forecast and Other Forward-looking Statements” on page 3 and the press release dated today (August 4, 2023) about earnings forecast anddividend forecast (Japanese version only).

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): None
(2) Application of special accounting methods for presenting quarterly consolidated financial statements: None
(3) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: None
4) Restatements: None

(4) Number of issued shares (common shares)
1) Number of shares issued at the end of the period (including treasury shares)
As of Jun. 30, 2023:

34,837,230 shares

As of Mar. 31, 2023:

34,837,230 shares

As of Mar. 31, 2023:

5,966,020 shares

Three months ended Jun. 30, 2022:

28,835,661 shares

2) Number of treasury shares at the end of the period
As of Jun. 30, 2023:

5,966,589 shares

3) Average number of shares outstanding during the period
Three months ended Jun. 30, 2023: 28,870,934 shares* The current quarterly financial report is not subject to quarterly review by certified public accountants or auditing firms.
* Cautionary statement with respect to forward-looking statements and other special items
Forecasts of future performance in these materials are based on assumptions judged to be valid and information available to the
management of Yodogawa Steel Works at the time the materials were prepared. These materials are not promises by Yodogawa
Steel Works regarding future performance. Actual results may differ significantly from these forecasts for a number of reasons.
For a discussion of the assumptions for forecasts, precautions concerning usage and other information, please refer to “1.
Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated Forecast and Other
Forward-looking Statements” on page 3.

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/24

Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Performance2(1) Explanation of Results of Operations

2(2) Explanation of Financial Position

3(3) Explanation of Consolidated Forecast and Other Forward-looking Statements

3

2. Quarterly Consolidated Financial Statements and Notes

5(1) Quarterly Consolidated Balance Sheet

5(2) Quarterly Consolidated Statements of Income and Comprehensive Income

7

Quarterly Consolidated Statement of Income
For the Three-month Period

7

Quarterly Consolidated Statement of Comprehensive Income
For the Three-month Period

8(3) Notes to Quarterly Consolidated Financial Statements

9

Going-concern Assumption

9

Significant Changes in Shareholders’ Equity

9

Notes to Quarterly Consolidated Balance Sheet

9

Segment and Other Information

10

1

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/24

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
During the first quarter of the fiscal year ending March 31, 2024, there was a broad-based slow economic recovery
in Japan as economic activity began returning to normal due to the progress of With Corona policy, such asreclassifying COVID-19’s category from Class 2 to Class 5, categorized as a common infectious disease. Despite
this improvement, housing and non-housing starts remained weak partly due to soaring construction material prices.
In the United States, consumer spending remained strong while inflation was protracted. In China, the economy isstagnating, due to worsening employment conditions and the sluggish real estate market. In addition, uncertainty
is increasing due to the prolonged Ukraine crisis.
In Japan, while automobile production increased as semiconductor supply shortages have eased and by other factors,
housing starts and machinery production declined. Under the circumstances, orders and production show declining
trends in the steel industry.
In overseas steel markets, the business climate is weakening, mainly in Asian markets, due to the impact of thesteel supply-demand gap in China and other factors.
The Yodogawa Steel Group’s net sales for the first quarter decreased 6,570 million yen from the same period of
the previous fiscal year to 51,062 million yen. Operating profit decreased 1,133 million yen to 2,893 million yen,ordinary profit decreased 2,244 million yen to 3,734 million yen, and profit attributable to owners of parent
decreased 1,326 million yen to 2,017 million yen.
In Japan, sales and earnings decreased mainly due to lower sales of steel sheets resulting from a decline in sales
volume.
Overseas, sales and earnings decreased mainly due to lower sales at Taiwan subsidiary Sheng Yu Steel Co., Ltd.
(SYSCO).
Business segment performance was as follows.
1) Steel Sheet-related BusinessNet sales totaled 48,470 million yen and operating profit was 2,896 million yen. Sales and earnings decreased.
Steel Sheet
In Japan, both sales and earnings decreased because of sales volume declines for both specific high-demandcustomers and general distribution as a result of stagnant demand in the building construction sector, which werepartly offset by revisions of selling prices of all types of steel sheets.
Overseas, sales and earnings of SYSCO in Taiwan decreased mainly because of declines in sales volume of exports
and selling prices. At Yodogawa Shengyu (Hefei) High-Tech Steel Co., Ltd. (YSS), a subsidiary in China, the sales
volume continues to recover thanks to economic normalization following the lifting of China’s zero-COVID policy.
Despite this improvement, the momentum of recovery was slow and improvement in performance was modest
mainly because of the real estate market adjustment. Sales and earnings of PCM Processing (Thailand) Ltd. (PPT),a Thai subsidiary, increased because of foreign exchange effects while remaining at roughly the same level as one
year earlier.
Building Material
Sales of exterior products decreased mainly due to lower sales volume of storage sheds and sales of exterior
construction material products decreased mainly due to lower sales volume of YODO Roof.
2) Roll BusinessNet sales totaled 888 million yen and operating profit was 53 million yen. Sales increased mainly due toincreased sales volumes in Japan and revisions of selling prices, thus returning to profitability.

2

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/24

3) Grating BusinessNet sales totaled 855 million yen and operating profit was 16 million yen. Sales increased, mainly due to revisionsof selling prices, but earnings were about the same as one year earlier.
4) Real Estate BusinessNet sales totaled 312 million yen and operating profit was 198 million yen. Both sales and earnings were about thesame as one year earlier.
5) Other Businesses
Net sales totaled 535 million yen and operating profit was 65 million yen. Earnings decreased because of lower
sales in the warehousing and transportation businesses, and other factors.
(2) Explanation of Financial Position
AssetsCurrent assets decreased by 2,338 million yen from the end of the previous fiscal year to 148,529 million yen. This
was attributable mainly to decreases of 1,489 million yen in securities, 607 million yen in merchandise and finishedgoods, and 1,686 million yen in raw materials and supplies, which were partially offset by an increase of 1,598
million yen in cash and deposits.
Non-current assets increased by 3,531 million yen from the end of the previous fiscal year to 103,720 million yen.
This was attributable mainly to an increase of 3,756 million yen in investment securities, which was partially offset
by a decrease of 280 million yen in property, plant and equipment.
Total assets increased by 1,192 million yen from the end of the previous fiscal year to 252,250 million yen.
Liabilities
Current liabilities decreased by 3,737 million yen from the end of the previous fiscal year to 31,354 million yen.
This was attributable mainly to decreases of 871 million yen in notes and accounts payable-trade and 2,281 million
yen in income taxes payable.
Non-current liabilities increased by 1,326 million yen from the end of the previous fiscal year to 15,385 million
yen. This was attributable mainly to an increase of 1,297 million yen in deferred tax liabilities included in othernon-current liabilities.
Total liabilities decreased by 2,411 million yen from the end of the previous fiscal year to 46,739 million yen.
Net assets
Net assets increased by 3,604 million yen from the end of the previous fiscal year to 205,510 million yen. This was
attributable mainly to increases of 2,017 million yen in retained earnings owing to the recording of profit
attributable to owners of parent, 2,643 million yen in valuation difference on available-for-sale securities, 448
million yen in foreign currency translation adjustment, and 590 million yen in non-controlling interests, whichwere partially offset by a decrease of 2,089 million yen in retained earnings resulted from the payment of dividends.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
The Japanese economy is expected to recover moderately in the fiscal year 2023 mainly because of the return oftraffic following the reclassification of COVID-19 and easing of supply shortages. The outlook for the global
economy is expected to remain unclear because of a combination of factors. Even though the Chinese economy isanticipated to recover following the lifting of its zero-COVID policy, concerns remain over an economic downturncaused by the effects of the prolonged Ukraine crisis and monetary tightening in the United States and Europe.
Furthermore, signs of financial instability are suspected.
In the steel markets in Japan and other countries, while increases in raw material prices used for steelmaking aswell as the cost of resources and energy are coming to a pause, there are additional geopolitical risks such as theprolonged situation in Ukraine, combined with concerns about the stagnant Chinese economy. Due to this situation,3

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/24

the steel market, including the balance between supply and demand, is likely to remain unstable for the time being.
The Yodogawa Steel Group as well is likely to continue to operate in a challenging business climate due to theunpredictability and instability of demand and expenses in all regions.
To succeed in this uncertain business climate, all group companies are focusing on speed and agility concerning
both sales and production activities to respond to rapidly changing market conditions. At the same time, by steadily
implementing the “Yodogawa Steel Group Medium-Term Management Plan 2025,” we will work to strengthen ourearning power.
The forecast for consolidated performance in the first half of the current fiscal year is based on this outlook for the
economy and steel market.
There is no forecast for the fiscal year ending in March 2024 at this time because of the difficulty of determining
a reliable forecast due to the increasing uncertainty about the business climate in Japan and other countries. An
announcement will be made promptly once it becomes possible to determine a reliable forecast.

4

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/24

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
FY3/23(as of Mar. 31, 2023)(Millions of yen)First quarter of FY3/24(as of Jun. 30, 2023)

AssetsCurrent assets
Cash and deposits

40,18941,787

Notes and accounts receivable-trade, and contract assets

49,52150,177

Electronically recorded monetary claims-operating

4,454

4,144

Securities

4,207

2,717

Merchandise and finished goods

23,28522,677Work in process

6,476

6,120

Raw materials and supplies

19,924

18,237

Other

2,961

2,819

Allowance for doubtful accounts

(152)

(152)

150,867

148,529

Property, plant and equipment

56,60256,321Intangible assets

2,076

2,122

Investment securities

40,193

43,950Retirement benefit asset

724

745

Other

592

580

Total current assets
Non-current assets

Investments and other assets

Total investments and other assets

41,51045,276100,189

103,720251,057

252,250

Notes and accounts payable-trade

17,881

17,010Electronically recorded obligations-operating

2,987

3,180

Short-term borrowings

1,328

1,356

Income taxes payable

3,159

877

Provision for bonuses

1,259

585

971

1,634

Other

7,503

6,708

Total current liabilities

35,092

31,35432

24

Total non-current assets
Total assets
Liabilities
Current liabilities

Provision for product warranties

Non-current liabilities
Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability

5,517

5,593

Other

8,508

9,767

Total non-current liabilities

14,05815,385

49,15046,739Total liabilities

5

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/24

FY3/23(as of Mar. 31, 2023)(Millions of yen)First quarter of FY3/24(as of Jun. 30, 2023)

Net assets
Shareholders’ equity
Share capital

23,22023,220Capital surplus

18,267

18,267Retained earnings

126,064

126,015

Treasury shares(11,895)(11,897)

Total shareholders’ equity

155,657

155,606

16,11518,759

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land

1,529

1,505

Foreign currency translation adjustment

5,958

6,407

Remeasurements of defined benefit plans

412

408

24,01627,080140140Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests

22,092

22,683

Total net assets

201,906

205,510251,057

252,250

Total liabilities and net assets

6

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/24(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statement of Income)(For the Three-month Period)(Millions of yen)First three months of FY3/24(Apr. 1, 2023 to Jun. 30, 2023)

First three months of FY3/23(Apr. 1, 2022 to Jun. 30, 2022)
Net sales

57,63251,062

Cost of sales

48,17342,757Gross profit

9,459

8,304

Selling, general and administrative expenses

5,431

5,410

Operating profit

4,027

2,893

Interest income

111

128

Dividend income

538

437

Foreign exchange gains

244

2

Gain on sale of investment securities
Share of profit of entities accounted for using
equity method
Other

868

97

129

111

Non-operating income

Total non-operating income

139

151

2,032

927

23

34

47

43

10

9

Non-operating expenses
Interest expenses
Cost for employees transferred temporarily tooverseas subsidiaries
Other
Total non-operating expenses
Ordinary profit

80

86

5,978

3,734

Extraordinary income
Gain on sale of non-current assets

–

0

Other

0

–

Total extraordinary income

0

0

39

419

295

0

Extraordinary losses
Loss on sale and retirement of non-current
assetsImpairment losses

335

419

Profit before income taxes

Total extraordinary losses

5,643

3,315

Income taxes-current

1,457

733

Income taxes-deferred

233

208

Total income taxes

1,690

942

Profit

3,952

2,373

609

356

3,343

2,017

Profit attributable to non-controlling interests
Profit attributable to owners of parent

7

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/24(Quarterly Consolidated Statement of Comprehensive Income)(For the Three-month Period)First three months of FY3/23(Apr. 1, 2022 to Jun. 30, 2022)(Millions of yen)First three months of FY3/24(Apr. 1, 2023 to Jun. 30, 2023)

Profit

3,952

2,373

Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges(2,633)

2,604

0

–

Foreign currency translation adjustment
Remeasurements of defined benefit plans, netof taxShare of other comprehensive income ofentities accounted for using equity method

1,855

701

10

(0)

(13)

47

Total other comprehensive income

(780)

3,353

3,172

5,727

Owners of parent

1,935

5,105

Non-controlling interests

1,236

622

Comprehensive income
Comprehensive income attributable to8

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/24(3) Notes to Quarterly Consolidated Financial Statements
Going-concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Not applicable.

Notes to Quarterly Consolidated Balance Sheet
Contingent liabilities
Yodogawa Steel Works has determined that, depending on the location, conditions, and other aspects of their use,
there have been problems involving the appearance and durability of some building exterior pre-painted steel sheets
manufactured between 2007 and 2016 that have occurred prior to the end of the expected lifetime of these sheets.
Yodogawa Steel Works has explained this problem to companies that sell these sheets and is covering repair andother expenses.
Repair and other expenses, including expenses for problems that have occurred but where repairs and otheractivities have not been completed, are recorded as period costs. The costs of the future problems involving thesesheets have not been expensed because it is not possible to determine a reliable forecast of how many problems
will occur.
There may be significant repair and other expenses involving these sheets in the coming years depending on numberof problems that occur.

9

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 1Q of FY3/24

Segment and Other Information
Segment information
I. First three months of FY3/23 (Apr. 1, 2022 to Jun. 30, 2022)
1. Information related to net sales and profit/loss for each reportable segment
Reportable segments
Steel SheetReal
Roll
Grating
relatedEstateBusiness BusinessBusiness
Business

Total

Others(Note 1)

Total

(Millions of yen)Amounts
shown on the
Adjustment consolidated(Note 2)statement ofincome(Note 3)

Net sales
External sales
55,372639
830
307
57,149483
57,632–
57,632
Inter-segment
–
–
–
104
104
716
821
(821)
–
sales and transfers
Total
55,372639
830
412
57,253
1,200
58,453(821)
57,632
Segment profit
4,118
(60)
17
205
4,280
94
4,375
(348)
4,027
(loss)
Notes: 1. Others represent businesses which are not included in any of the reportable segments and mainly consist oftransportation, warehouse, golf course, machinery plant, electric power (sale of solar power), and other businesses.
2. The adjustment to segment profit (loss) includes unallocated expenses of (346) million yen and an elimination forinter-segment transactions of (1) million yen.
3. Segment profit (loss) is adjusted with the operating profit on the quarterly consolidated statement of income.

2. Information related to impairment losses on non-current assets, or goodwill, etc., for each reportable segment
Material impairment losses related to non-current assets
In the Others (golf course business) segment, impairment losses on non-current assets were recorded. The amountof the impairment losses was 295 million yen in the first three months of FY3/23.
II. First three months of FY3/24 (Apr. 1, 2023 to Jun. 30, 2023)
1. Information related to net sales and profit/loss for each reportable segment
Reportable segments
Steel SheetReal
Roll
Grating
relatedEstateBusiness BusinessBusiness
Business

Total

Others(Note 1)

Total

(Millions of yen)Amounts
shown on the
Adjustment consolidated(Note 2)statement ofincome(Note 3)

Net sales
External sales
Inter-segment
sales and transfers
Total

48,470

888

855

312

50,526535

51,062–51,062

–

–

–

103

103

525

629

(629)

–

48,470

888

855

416

50,6301,060

51,691(629)

51,062

Segment profit
2,896
53
16
198
3,164
65
3,230
(336)
2,893
Notes: 1. Others represent businesses which are not included in any of the reportable segments and mainly consist oftransportation, warehouse, golf course, machinery plant, electric power (sale of solar power), and other businesses.
2. The adjustment to segment profit includes unallocated expenses of (338) million yen and an elimination for intersegment transactions of 1 million yen.
3. Segment profit is adjusted with the operating profit on the quarterly consolidated statement of income.

This summary report is solely a translation of “Kessan Tanshin” (in Japanese, including the attachments), which has been
prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers
who prefer an English translation.

10