May 10, 2018

Summary of the Consolidated Financial Results
for the Fiscal Year Ended March 31, 2018 (FY3/18)[Japanese GAAP]
Company name:

Yodogawa Steel Works, Ltd.
Stock exchange listed: Tokyo, 1st Section
5451
URL: http://www.yodoko.co.jp/
Takaaki Kawamoto, President and Representative Director
Yasunori Osumi, Executive Officer, General Manager of IR Department
Tel: +(81)6-6245-1113
Scheduled date of Annual General Meeting of Shareholders: June 22, 2018
Scheduled date of payment of dividend:
June 25, 2018
Scheduled date of filing of Annual Securities Report:
June 22, 2018
Preparation of supplementary materials for financial results: Yes
Holding of financial results meeting:Yes (for analysts and institutional investors)
Stock code:
Representative:
Inquiries:(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for FY3/18 (April 1, 2017 to March 31, 2018)(1) Consolidated results of operations
Net sales

Operating profit

Millions of yen

Fiscal year ended Mar. 31, 2018
173,805
Fiscal year ended Mar. 31, 2017
154,221
Note: Comprehensive income (millions of yen)

(Percentages represent year-on-year changes)
Profit attributable toOrdinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen

%

12.7
(3.1)

Net income pershare

10,856 (17.6)
12,284 (10.7)
7,360
9.3
13,16880.3
13,763
63.0
6,734
Fiscal year ended Mar. 31, 201813,314(up 11.7%)
Fiscal year ended Mar. 31, 2017: 11,923(-%)
Diluted net
Return on
Ordinary profit
Operating profit toincome per shareequityon total assets
net sales

Yen

Yen

Fiscal year ended Mar. 31, 2018247.98
Fiscal year ended Mar. 31, 2017
224.27
Reference: Equity in earnings of affiliates (millions of yen)%

246.93
5.0
223.38
4.8
Fiscal year ended Mar. 31, 2018
Fiscal year ended Mar. 31, 2017

%

%

5.8
6.6
332
300

6.2
8.5

(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Equity ratio

Millions of yen

Net assets per share%

Yen

As of Mar. 31, 2018
216,142
170,574
70.1
As of Mar. 31, 2017
209,977
161,374
68.2
Reference: Shareholders’ equity (millions of yen) As of Mar. 31, 2018:
151,586 As of Mar. 31, 2017:

5,112.17
4,805.41
143,241(3) Cash flow position
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

1,933
10,218(9,026)(1,559)(5,288)(9,897)27,27739,047

Fiscal year ended Mar. 31, 2018
Fiscal year ended Mar. 31, 2017

2. Dividends
Dividend per share
1Q-end2Q-endYen

Yen

3Q-end Year-end
Yen

Yen

Total

Total
dividends

Yen Millions of yen

Payout ratio(consolidated)

Dividend on
equity(consolidated)%%

Fiscal year ended Mar. 31, 2017
30.00
40.00
70.00
2,110
31.2
1.5
Fiscal year ended Mar. 31, 2018
35.00
40.00
75.00
2,245
30.2
1.5
Fiscal year ending Mar. 31, 2019
(Forecast)
There is currently no forecast for 2Q-end and year-end dividends for the fiscal year ending March 31, 2019. An announcement
will be made promptly once it becomes possible to disclose a dividend forecast.

3. Consolidated Forecasts for FY3/19 (April 1, 2018 to March 31, 2019)
No forecasts are presented because of the difficulty of determining a reliable forecast for the Yodogawa Steel Group’s results ofoperations in the fiscal year ending March 31, 2019 at the present time due to the extremely uncertain outlook for the steel market.
For further details, please refer to “1. Overview of Results of Operations, (2) Outlook” on page 4.

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): None
(2) 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

(3) Number of outstanding shares (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
As of Mar. 31, 2018:35,837,230 shares

As of Mar. 31, 2017:35,837,230 shares

As of Mar. 31, 2017:

6,028,845 sharesFiscal year ended Mar. 31, 2017:

30,030,501 shares

2) Number of treasury shares at the end of the period
As of Mar. 31, 2018:

6,185,228 shares

3) Average number of shares outstanding during the period
Fiscal year ended Mar. 31, 2018:

29,680,824 shares

Reference: Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for FY3/18 (April 1, 2017 to March 31, 2018)(1) Non-consolidated results of operations
Net sales
Millions of yen

Fiscal year ended Mar. 31, 2018
Fiscal year ended Mar. 31, 2017

106,357
97,043% Millions of yen

9.6
(1.0)

Net income per share
Fiscal year ended Mar. 31, 2018
Fiscal year ended Mar. 31, 2017

(Percentages represent year-on-year changes)
Ordinary profit
ProfitOperating profit% Millions of yen

7,801
7,986

(2.3)
26.6

10,352
8,798% Millions of yen

17.7
9.0

7,541
5,938

%

27.0
-

Diluted net income per
share

Yen

Yen

251.69195.92250.64195.15(2) Non-consolidated financial position
Total assets
Millions of yen

Net assets

Equity ratio

Millions of yen

Net assets per share%

Yen

As of Mar. 31, 2018
175,907
140,526
79.8
As of Mar. 31, 2017
169,567
133,774
78.8
Reference: Shareholders’ equity (millions of yen) As of Mar. 31, 2018:
140,302 As of Mar. 31, 2017:

4,686.83
4,438.86
133,569* The current financial report is not subject to audit 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 t o be valid and information available to theCompany’s management at the time the materials were prepared. These materials are not promises by the Company regarding
future performance. Actual results may differ significantly from these forecasts for a number of reasons. For a discussion of theassumptions for forecasts, precautions concerning usage and other information, please refer to “1. Overview of Results ofOperations, (2) Outlook” on page 4.

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/18

Contents of Attachments
1. Overview of Results of Operations

2(1) Results of Operations and Financial Position

2(2) Outlook

4(3) Basic Policy for Profit Distribution and Dividends in the Current and Next Fiscal Years5

2. Basic Approach to the Selection of Accounting Standards

5

3. Consolidated Financial Statements and Notes

6(1) Consolidated Balance Sheet

6(2) Consolidated Statements of Income and Comprehensive Income

8

Consolidated Statement of Income

8

Consolidated Statement of Comprehensive Income

9(3) Consolidated Statement of Changes in Equity

10(4) Consolidated Statement of Cash Flows

12(5) Notes to Consolidated Financial Statements

14

Going-concern Assumption

14

Significant Accounting Policies in the Preparation of Consolidated Financial Statements

14

Notes to Consolidated Balance Sheet

17

Notes to Consolidated Statement of Income

19

Notes to Consolidated Statement of Comprehensive Income

21

Notes to Consolidated Statement of Changes in Equity

22

Notes to Consolidated Statement of Cash Flows23

Segment Information

24

Per-share Information

26

Subsequent Events

26

4. Non-consolidated Financial Statements

27(1) Non-consolidated Balance Sheet

27(2) Non-consolidated Statement of Income29(3) Non-consolidated Statement of Changes in Equity

30

1Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/18

1. Overview of Results of Operations(1) Results of Operations and Financial Position
1) Summary of results of operations
During the fiscal year ended March 31, 2018, the gradual recovery of the Japanese economy continued asconsumer spending continued its upturn because of the support of a further improvement in corporate earnings,
labor market and personal income.
In the United States, the Federal Reserve raised interest rates in June and December 2017 and March 2018 alongwith increasing exports fueled by global economic growth as well as strong consumer spending and capital
expenditures. Economies in Europe were generally healthy, too. In China, there were concerns that measures tostop real estate speculation and tighten financial controls may cause economic growth to slow. However, theeconomy remained sound with the support of strength in exports and consumer spending. Late in the fiscal year,
stock prices worldwide began to fall in response to rising long -term interest rates due to expectations for rising
inflation in the United States, where labor statistics were better than forecast. Financial markets have remained
unstable since then, partly because of additional worries created by U.S. trade protectionism.
In the steel industry, shipments of ordinary steel products in Japan were strong as production con tinued to grow in
the automobile, industrial machinery and other key industries.
The global steel market began to weaken in the spring of 2017, starting in China. But prices of steel products thenbegan to climb in response to China’s elimination of low-quality steel made from ferrous scrap, production
limitations caused by tighter environmental regulations and other events. In the fiscal year’s final months, steel
prices started declining in part because of worries about growing inventories and U.S. restri ctions on steel
imports.
The Yodogawa Steel Group’s net sales in the fiscal year increased 19,584 million yen to 173,805 million yen.
Operating profit decreased 2,311 million yen to 10,856 million yen, ordinary profit decreased 1,478 million yen
to 12,284 million yen, and profit attributable to owners of parent increased 625 million yen to 7,360 million yen.
Total assets at the end of the fiscal year increased 6,164 million yen to 216,142 million yen. This was attributable
mainly to increases in inventories in association with higher cost of raw materials and product prices andinvestment securities along with rising stock prices. Liabilities decreased 3,035 million yen to 45,567 million yen.
This was attributable mainly to decreases in accounts payable-equipment and net defined benefit liability. Net
assets increased 9,199 million yen to 170,574 million yen. This was attributable mainly to increases in retained
earnings and valuation difference on available-for-sale securities.
Results by business segment are as follows.
Steel Sheet-related BusinessNet sales totaled 161,674 million yen and operating profit was 10,818 million yen.
Roll BusinessNet sales totaled 3,759 million yen and operating profit was 57 million yen.
Grating BusinessNet sales totaled 3,547 million yen and operating profit was 114 million yen.
Real Estate BusinessNet sales totaled 1,067 million yen and operating profit was 736 million yen.
Other Businesses
Net sales totaled 3,756 million yen and operating profit was 361 million yen.

2

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/18

Cash and cash equivalents at the end of the fiscal year decreased 11,769 million yen from the end of the previous
fiscal year to 27,277 million yen mainly due to an increase in inventories in association with higher cost of raw
materials and product prices and a decrease in proceeds from withdrawal of time deposits.
Cash flows from operating activities
Net cash provided by operating activities decreased 8,284 million yen to 1,933 million yen. Main positive factors
include profit before income taxes. Major negative factors include an increase in inventories.
Cash flows from investing activities
Net cash used in investing activities was 9,026 million yen (compared with 1,559 million yen used in the previous
fiscal year) mainly due to purchase of property, plant and equipment and payments into time deposits.
Cash flows from financing activities
Net cash used in financing activities was 5,288 million yen (compared with 9,897 million yen used in theprevious fiscal year) mainly due to cash dividends paid.
2) Analysis and review of results of operations
Net sales increased primarily because of price revisions in the Steel Sheet -related Business. Higher sales at
Yodogawa-Shengyu (Hefei) High-Tech Steel Co., Ltd. (YSS), a subsidiary in China, also contributed to the sa les
growth.
Operating profit was lower in Japan as the higher cost of primary raw materials, secondary materials, energy andother items more than offset the positive effect of price revisions. Overseas, there was a sharp decline in operating
profit despite an improvement at YSS. The main reason was lower earnings at Taiwan subsidiary Sheng Yu SteelCo., Ltd. (SYSCO) caused by flat steel demand in Taiwan and a resumption in the downturn in exports to theUnited States, which had been recovering, because of U.S. trade protectionism.
Ordinary profit decreased less than operating profit primarily because of an increase in dividend income andgains on sales of investment securities.
Profit attributable to owners of parent increased. The main reason was the extr aordinary loss for the impairment
of non-current assets at YSS in the previous fiscal year that reduced profit attributable to owners of parent.
With respect to the Yodogawa Steel Group’s capital resources and fund liquidity, the primary goal is to maintainconsistent operating cash flows in order to make substantial investments for sustained growth, secure funds
necessary for the greatest possible shareholder distributions and maintain a robust financial position.
As of the end of March 2018, there were no significant capital expenditures planned that would require theprocurement of funds from external sources. For working capital and capital expenditures, the policy is to useinternal resources as the main source of funding and use loans from financial institutions as needed.
As an objective target for monitoring progress concerning management policies, strategic goals and businessgoals, the Yodogawa Steel Group Medium-Term Management Plan 2019, which was announced in March 2017,
has the following goal: consolidated ordinary profit of at least 10 billion yen every year regardless of theperformance of existing businesses and changes in the business climate, including foreign exchange rate
movements.
In the fiscal year that ended in March 2018, the operating environment was challenging. One reason was thehigher cost of raw materials, energy and other items. Trade protectionism in all regions of the world also mademarket conditions difficult. Despite these challenges, the Yodogawa Steel Group exceeded the consolidated
ordinary profit target by operating with the speed and flexibility that has always been one of the Group’s key
strengths.
The financial position and recognition, analysis and review of results of operations by business segment are as
follows.

3

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/18

Steel Sheet-related Business
In Japan, the volume of steel sold to specific high-demand customers decreased mainly for use in exported
products. But monetary sales increased as the demand for steel within Japan remained firm and there was certain
progress with price revisions. Monetary retail sales of steel for general distribution increased as customers havebeen accepting most price revisions. The sales volume was higher in non -residential sectors as capital
expenditures increased, but total retail sales volume decreased because of a downturn in steel demand in theresidential market. In Taiwan, sales at SYSCO increased as price increases more than offset a decrease in sales
volume due to flat demand for steel in Taiwan. In China, earnings at YSS improved along with growth in sales
volume. Sales volume was lower at PCM PROCESSING (THAILAND) LTD., a subsidiary in Thailand, due toprice revisions and the higher cost of raw materials caused earnings to decline.
There was a small decrease in sales of building materials despite price revisions for roofing products. A policy of
becoming more selective when accepting orders reduced the sales volume and the sales volume of YODO Fine
Panel insulated siding decreased. For exterior products, sales of storage sheds recovered along with a recovery inconsumer spending and there were also strong sales of garages and large warehouses. Construction sales
increased significantly mainly due to the completion of large projects and an increase in the number of projects
that use insulation and fireproof panels, which are added-value products.
As a result, total sales in this segment were higher than in the previous fiscal year.
Roll BusinessAlthough the sales volume of rolls for the iron and steel industry decreased, moneta ry sales increased because ofdeliveries of papermaking equipment, new orders in the film sector and other reasons.
Grating Business
Sales benefited from a steady volume of private-sector orders and efforts to increase sales of value-added
products. But total sales were down due to sluggish public-sector sales.
Real Estate Business
Sales increased because of a higher occupancy rate at tenant-occupied buildings.
Other Businesses
Higher sales in material sales operations raised sales in other businesses.
(2) Outlook
The outlook for the global economy is generally positive despite a number of risk factors. There are concerns
about trade friction associated with the emergence of trade protectionism that began in the United States andtension involving the Middle East and North Korea.
In Japan, the outlook is for a continuation of a slow economic recovery. The Japanese economy will probably
benefit from the growth of expenditures related to Tokyo Olympics in 2020 and private-sector capital
expenditures and from steady consumer spending.
The overseas steel market is expected to continue to grow because of the strength of the global economy. But
there are concerns about the effects of widespread trade protectionist policies worldwide, including the U.S.
import tariff hike for steel products (U.S. Trade Expansion Act, Section 232). In Japan, the demand for steel isstrong because of the high level of private-sector capital expenditures and start of many construction projects for
the Tokyo Olympics in 2020. But the Yodogawa Steel Group expects that higher prices of hot-rolled steel sheets
and zinc, the primary raw materials for the Group’s steel products, and other factors will create a challenging
business climate.
Based on this outlook, uncertainty about the Yodogawa Steel Group’s operating environment is increasing,particularly regarding overseas steel markets. Due to this uncertainty, it is not possible to determine a reliable
4

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/18

forecast for the Yodogawa Steel Group’s results of operations in the fiscal year ending in March 2019 at thepresent time. An announcement will be made promptly once it becomes possible to determine a reliable forecast.
The fiscal year ending in March 2019 is the second year of the Yodogawa Steel Group Medium -Term
Management Plan 2019. All companies are taking full advantage of the speed and flexibility that has always beena key strength of the entire group in order to achieve the goals of this plan. To become more profitable, groupcompanies are continuing to revise selling prices, establish positions in new markets and increase sales ofvalue-added products. Establishing a sound foundation for the operations of YSS is currently the highest priorityof the Yodogawa Steel Group. There will be more initiatives to accomplish this goal that i nclude the cooperationof two subsidiaries in China: Shanghai Yodoko Trading Co., Ltd., (SYT), which was established in November
2017 to sell products in the home appliance and electronics market, and Yodoko Building Material (Hangzhou)Co., Ltd. (YBMH), a non-consolidated subsidiary that sells products in the building materials market.
(3) Basic Policy for Profit Distribution and Dividends in the Current and Next Fiscal Years
Distributing earnings to shareholders is one of the highest priorities of Yodoga wa Steel. Earnings are distributedby paying dividends that reflect results of operations, repurchasing stock and in other ways. The basic policy for
dividends that are in line with our results of operations is to make payments that are stable and continuo us.
Dividends also take into consideration the need for funds for investments and other actions for increasing
corporate value, the outlook for sales and earnings, the need to maintain financial soundness, and other items. To
pay dividends that reflect results of operations, the target consolidated payout ratio is between about 30% and50%. In addition, there is a goal of paying an annual dividend of at least 50 yen per share for each of the threefiscal years ended in March 2017 and 2018 and ending in March 2019.
The basic policy is to pay interim and year-end dividends. In accordance with Article 459, Paragraph 1 of theCompanies Act, the Yodogawa Steel Articles of Incorporation state that dividends can be paid based on a
resolution of the Board of Directors, except in cases where stipulated otherwise by laws and regulations.
The year-end dividend for the fiscal year that ended March 31, 2018 is to be 40 yen per share. With the interim
dividend of 35 yen, this will result in a dividend of 75 yen per share for this fiscal year.
There is currently no forecast for 2Q-end and year-end dividends for the fiscal year ending March 31, 2019. An
announcement will be made promptly once it becomes possible to disclose a dividend forecast.
2. Basic Approach to the Selection of Accounting Standards
The Yodogawa Steel Group will continue to prepare consolidated financial statements using generally accepted
accounting principles in Japan for the time being to permit comparisons with prior years and with the financial
data of other companies.
We will take suitable actions with regard to the application of the International Financial Reporting Standards(IFRS) by taking into account associated factors in Japan and other countries.

5

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/18

3. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheet
FY3/17(as of Mar. 31, 2017)(Millions of yen)
FY3/18(as of Mar. 31, 2018)*1*1

AssetsCurrent assets
Cash and deposits

40,761

Notes and accounts receivable-trade

30,716

41,103

Securities
Merchandise and finished goods

43,938-2,888

11,40416,081Work in process

3,457

4,684

Raw materials and supplies

10,646

13,122

Deferred tax assets
Other
Allowance for doubtful accounts

528

446

6,400

5,376

(113)

(149)

114,188

117,104

59,86960,924

Accumulated depreciation(43,213)(44,632)

Buildings and structures, net

16,656

16,291

Machinery, equipment and vehicles

130,699

133,033(117,628)(120,453)

13,071

12,579Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

Accumulated depreciation
Machinery, equipment and vehicles, net
Land

*4

18,685

Leased assets
Accumulated depreciation*4

18,848

1,408

1,504

(529)

(717)

Leased assets, net

879

787

Construction in progress

765

1,135

Other
Accumulated depreciation

11,99312,084(11,163)(11,217)829

867

50,88850,509Other, net
Total property, plant and equipment
Intangible assets
Goodwill

10

7

Other

1,416

1,475

Total intangible assets

1,427

1,482

Investments and other assets
Investment securities*1,*2

42,574Long-term loans receivable
Deferred tax assets
Other

*1

*1,*2

46,338

3

0

403

278

492

*1

427

Allowance for doubtful accounts(0)-

Total investments and other assets

43,47447,045

Total non-current assets
Total assets

6

95,78999,037

209,977

216,142

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/18(Millions of yen)
FY3/18(as of Mar. 31, 2018)

FY3/17(as of Mar. 31, 2017)
Liabilities
Current liabilities
Notes and accounts payable-trade

17,80018,154

Short-term loans payable

669-

Lease obligations

177

772

Income taxes payable

2,770

2,165

Provision for bonuses

1,052

1,056

Other

*1

7,978

Total current liabilities

*1

6,098

30,44828,247

Non-current liabilities
Lease obligations
Deferred tax liabilities
Deferred tax liabilities for land revaluation*4

Provision for directors’ retirement benefits
Net defined benefit liability

743

19

3,942

4,564

856

*4

856

94

66

8,278

7,569

Other

4,240

4,244

Total non-current liabilities

18,154

17,32048,60345,567

Capital stock

23,22023,220Capital surplus

20,38820,393

Total liabilities
Net assets
Shareholders’ equity

Retained earnings

95,664

100,775

Treasury shares(12,199)(12,679)

Total shareholders’ equity

127,074

131,710

14,477

16,420

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

*4

1,626

*4

1,646

Foreign currency translation adjustment

1,580

Remeasurements of defined benefit plans(1,516)(990)

Total accumulated other comprehensive income

16,167

19,875

205

223

Share acquisition rights

2,798

Non-controlling interests

17,927

18,764

Total net assets

161,374

170,574

209,977

216,142

Total liabilities and net assets

7

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/18(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statement of Income)
FY3/17(Apr. 1, 2016 to Mar. 31, 2017)(Millions of yen)
FY3/18(Apr. 1, 2017 to Mar. 31, 2018)

154,221

173,805

Net sales
Cost of sales*1

123,884*2,*3

17,168Gross profit*130,336

Selling, general and administrative expenses
Operating profit

144,973
28,831*2,*3

17,974

13,16810,856

Interest income

294

415

Dividend income

629

771

Insurance income

104

88

-

226

300

332

250

278

1,579

2,113

Interest expenses

157

107

Foreign exchange losses

199

152

Commitment fee
Cost for employees transferred temporarily tooverseas subsidiaries
Loss on disposal of PCB

27

27

261

246

Non-operating income

Gain on sales of investment securities
Share of profit of entities accounted for using
equity method
Other
Total non-operating income
Non-operating expenses

Arbitration settlement cost

231

-

-

120

Other

107

31

Total non-operating expenses

984

685

13,763

12,284*4*4Ordinary profit
Extraordinary income
Gain on sales of non-current assets

2

1

Gain on sales of investment securities-

23

Total extraordinary income

224Extraordinary losses
Loss on sales and retirement of non-current
assetsImpairment loss

*5

93

*5

*6

737

*6

99
3

Loss on valuation of investment securities
Loss on liquidation of subsidiaries andassociates
Other

134

86

-

33

0

-

Total extraordinary losses

965

222

Profit before income taxes

12,80012,087

Income taxes-current

4,126

3,537

Income taxes-deferred

73

(145)

Total income taxes

4,199

3,391

Profit

8,600

8,695

Profit attributable to non-controlling interests

1,866

1,335

Profit attributable to owners of parent

6,734

7,360

8

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/18(Consolidated Statement of Comprehensive Income)
FY3/17(Apr. 1, 2016 to Mar. 31, 2017)(Millions of yen)
FY3/18(Apr. 1, 2017 to Mar. 31, 2018)

8,600

8,695

3,725

1,873

(734)

2,065

309

636

22

43

ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, netof taxShare of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income*

Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to ownersof parent
Comprehensive income attributable tonon-controlling interests

9

3,322

*

4,618

11,923

13,314

10,597

11,049

1,326

2,264

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/18(3) Consolidated Statements of Changes in Equity
FY3/17 (Apr. 1, 2016 to Mar. 31, 2017)(Millions of yen)
Shareholders’ equity
Retained
Total shareholders’Capital surplus
Treasury sharesearnings
equityCapital stock
Balance at beginning of current
periodChanges of items during period

23,22021,432

90,589Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Capital increase of consolidated
subsidiaries
Purchase of shares of
consolidated subsidiaries
Reversal of revaluation reserve
for landNet changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at end of current period(10,399)

124,844(1,660)(1,660)

6,734

6,734
(1,810)(1,810)9

8(1)(1,048)(1,048)

6

6
0

0

-

(1,044)

5,075(1,800)2,230

23,22020,38895,664(12,199)

127,074

Accumulated other comprehensive income
RemeasureTotal
Share
NonValuation
Foreign
Revaluation
ments ofaccumulated acquisition controlling Total net
difference on
currency
assetsreserve fordefinedotherrightsinterests
available-fortranslation
land
benefit comprehensive
sale securities
adjustment
plansincomeBalance at beginningof current period
Changes of items
during period
Dividends ofsurplusProfit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesCapital increase of
consolidated
subsidiaries
Purchase of sharesof consolidated
subsidiaries
Reversal ofrevaluation reserve
for landNet changes of
items other thanshareholders’ equity
Total changes of
items during period
Balance at end ofcurrent period

10,755

1,626

1,860

(1,937)

12,305

177

16,071

153,399(1,660)6,734(1,810)8(1,048)

6

0

3,721

(0)

(279)

420

3,861

27

1,855

5,744

3,721

(0)

(279)

420

3,861

27

1,855

7,975

14,477

1,626

1,580

(1,516)

16,167205

17,927

161,37410

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/18

FY3/18 (Apr. 1, 2017 to Mar. 31, 2018)(Millions of yen)
Shareholders’ equity
Retained
Total shareholders’Capital surplus
Treasury sharesearnings
equityCapital stock
Balance at beginning of current
periodChanges of items during period

23,22020,38895,664

Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Purchase of shares of
consolidated subsidiaries
Reversal of revaluation reserve
for landNet changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at end of current period(12,199)

127,074(2,230)(2,230)

7,360

7,360
(495)

(495)

15

9

(5)
11

11
(19)

(19)

-

5

5,110

(480)

4,635

23,22020,393

100,775(12,679)

131,710

Accumulated other comprehensive income
RemeasureTotal
Share
NonValuation
Foreign
Revaluation
ments ofaccumulated acquisition controlling Total net
difference on
currency
assetsreserve fordefinedotherrightsinterests
available-fortranslation
land
benefit comprehensive
sale securities
adjustment
plansincomeBalance at beginningof current period
Changes of items
during period
Dividends ofsurplusProfit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesPurchase of sharesof consolidated
subsidiaries
Reversal ofrevaluation reserve
for landNet changes of
items other thanshareholders’ equity
Total changes of
items during period
Balance at end ofcurrent period

14,477

1,626

1,580

(1,516)

16,167205

17,927

161,374(2,230)
7,360
(495)
9
11

(19)

1,943

20

1,218

526

3,708

18

836

4,564

1,943

20

1,218

526

3,708

18

836

9,199

16,420

1,646

2,798

(990)

19,875223

18,764

170,57411

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/18(4) Consolidated Statement of Cash Flows
FY3/17(Apr. 1, 2016 to Mar. 31, 2017)(Millions of yen)
FY3/18(Apr. 1, 2017 to Mar. 31, 2018)

Profit before income taxes

12,80012,087

Depreciation

4,169

4,318

3

3

(300)

(332)

(1,630)

78

(17)

(28)

113

4

2

35

(923)

(1,187)

Cash flows from operating activities

Amortization of goodwill
Share of loss (profit) of entities accounted forusing equity method
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for directors'
retirement benefits
Increase (decrease) in provision for bonuses
Increase (decrease) in allowance for doubtful
accounts
Interest and dividend income
Interest expenses

157

107

Insurance income

(104)

(88)

Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Loss (gain) on sales and retirement of non-current
assetsImpairment loss
Decrease (increase) in notes and accounts
receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts
payable-trade
Increase (decrease) in accrued consumption taxes

6

(226)

134

86

90

97

737

3

(3,398)(2,681)(483)(7,937)

1,459

245

(936)

177

Other, net

780

49

Subtotal

12,659

4,811

Proceeds from insurance income

104

88

Interest and dividend income received

957

1,236

Interest expenses paid

(162)

(109)

Income taxes paid

(3,341)(4,094)

Net cash provided by (used in) operating activities

10,218

1,933(1,261)(3,808)

6,816

1,984

100

-

Purchase of property, plant and equipment
Proceeds from sales of property, plant andequipment
Purchase of intangible assets(4,768)(4,563)

10

1

(298)

(162)

Purchase of investment securities
Proceeds from sales and redemption of investment
securities
Payments of loans receivable(3,307)(3,605)

1,359

1,445

(424)

(484)

215

165

(1,559)(9,026)

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Proceeds from sales and redemption of securities

Collection of loans receivable
Net cash provided by (used in) investing activities

12

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/18

FY3/17(Apr. 1, 2016 to Mar. 31, 2017)(Millions of yen)
FY3/18(Apr. 1, 2017 to Mar. 31, 2018)(5,737)

(664)

(164)

(180)

0

0

Cash flows from financing activities
Net increase (decrease) in short-term loans
payableRepayments of lease obligations
Proceeds from sales of treasury shares
Purchase of treasury shares(1,807)(492)

Cash dividends paid

(1,675)(2,251)Dividends paid to non-controlling interests
Payments from changes in ownership interests in
subsidiaries that do not result in change in scopeof consolidation(511)(1,407)

(1)

(291)

Net cash provided by (used in) financing activities(9,897)(5,288)

(503)

611

Net increase (decrease) in cash and cash equivalents(1,742)(11,769)

Cash and cash equivalents at beginning of period

40,79039,047

Effect of exchange rate change on cash and cash
equivalents

Cash and cash equivalents at end of period*

13

39,047*27,277

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/18(5) Notes to Consolidated Financial Statements
Going-concern Assumption
Not applicable.
Significant Accounting Policies in the Preparation of Consolidated Fina ncial Statements
1. Scope of consolidation(1) Number of consolidated subsidiaries: 7
Takada Kozai Kogyo Co., Ltd.
Sheng Yu Steel Co., Ltd. (SYSCO)
Yodoko Shoji Co., Ltd.
Keiyo Tekko Futo Co., Ltd.
Yodoko Kohatsu Co., Ltd.
Yodogawa-Shengyu (Hefei) High-Tech Steel Co., Ltd. (YSS)
PCM Processing (Thailand) Ltd. (PPT)(2) Names of major non-consolidated subsidiaries
Yodoko Kosan Co., Ltd., Yodogawa-Fuyo Co.,Ltd., Yodoko International Ltd. (YIL), Yodoko Building Materials(Hangzhou) Co.,Ltd. (YBMH)
The sum of total assets, sales, net income or loss (equity-method amount), retained earnings (equity-method amount) andother financial items of non-consolidated subsidiaries is small in relation to all of the corresponding consolidated figures.
Consequently, these subsidiaries are excluded from consolidation because they would not have a material impact on the
consolidated financial statements.
2. Application of equity method(1) Number of non-consolidated subsidiaries and affiliates accounted for using the equity me thod and names of major
companies
Non-consolidated subsidiaries: None
Affiliates: 1
SADOSHIMA CORPORATION(2) Names of major non-consolidated subsidiaries and affiliates not accounted for using the equity method and reason for
exclusion
Non-consolidated subsidiaries: Yodoko Kosan Co., Ltd., Yodogawa-Fuyo Co.,Ltd., Yodoko International Ltd. (YIL),
Yodoko Building Materials (Hangzhou) Co.,Ltd. (YBMH)
Affiliates: FUJIDEN INTERNATIONAL CORP., Shanghai Yodoko Trading Co., Ltd. (SYT)
The net income or loss (equity-method amount), retained earnings (equity-method amount) and other financial items ofthe non-consolidated subsidiaries and affiliates not accounted for using the equity method are negligible and the sum ofthese items for all of these subsidiaries and affiliates is immaterial in relation to the consolidated financial statements.
Consequently, the cost method is used for the valuation of investments in these companies and the equity method is not
used.
3. Fiscal year-end of consolidated subsidiaries
For consolidated subsidiaries, the fiscal year-end of SYSCO, YSS and PPT is the end of December. For the preparation of
the consolidated financial statements, the financial statements as of the end of December are used for SYSCO, YSS and PPT.
Consolidation adjustments are then made as needed for any significant transactions that occurred between January 1 andMarch 31, the end of the consolidated fiscal year.
4. Significant accounting policies(1) Valuation standards and methods for significant assets
1) Securities
i. Held-to-maturity debt securities
Stated at amortized cost (the straight-line method)
ii. Available-for-sale securities
With market quotations
Stated at fair value based on the market price at the end of the fiscal year (Unrealized gain or loss, net of applicable

14

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/18

income taxes, are included directly in net assets, and cost of securities sold is determined by the moving-averagemethod.
Without market quotations
Stated at cost determined by the moving-average method
2) Derivatives
Stated at fair value
3) Inventories
Primarily stated at cost determined by the gross average method (The carrying value on the balance sheet is written down
to reflect declines in profitability.)
The overseas subsidiaries apply primarily the cost method based on the moving-average method.
(2) Depreciation and amortization methods for significant depreciable assets
1) Property, plant and equipment (excluding lease assets)
Yodogawa Steel and domestic consolidated subsidiaries apply the declining-balance method. The overseas consolidated
subsidiaries apply the straight-line method.
However, Yodogawa Steel applies the straight-line method for depreciation of buildings acquired on or after April 1, 1998
(excluding facilities attached to buildings) and facilities attached to buildings and structures acquired on or after April 1,
2016.
The major useful lives of property, plant and equipment are as follows:
Buildings and structures
3 to 60 years
Machinery, equipment and vehicles
3 to 36 years
2) Intangible assets (excluding lease assets)
Straight-line method is applied.
Software for internal use is amortized by the straight-line method over an estimated useful life of five years.
3) Lease assets
Lease assets associated with finance lease transactions that transfer ownership
The same method as the depreciation method used for non-current assets held by Yodogawa Steel is applied.
Lease assets associated with finance lease transactions that do not transfer ownership
The straight-line method is applied over the lease period used as the useful life of the assets with no residual value.
(3) Accounting for significant allowances
1) Allowance for doubtful accounts
To prepare for credit losses on accounts receivable-trade and loans receivables, an allowance equal to the estimatedamount of uncollectible receivables is provided for general receivables based on the historical write-off ratio, and bad
receivables based on a case-by-case determination of collectibility.
2) Provision for bonuses
To provide for accrued bonuses for employees, an allowance is provided at the amount based on the estimated bonus
obligations in the current fiscal year.
3) Provision for directors’ retirement benefits
To provide for directors’ retirement benefits obligation, an allowance is provided at an amount required to be paid at the
fiscal year-end in accordance with the internal rules on directors’ retirement benefits at domestic consolidated subsidiaries.
(4) Accounting method for retirement benefits
1) Method of attributing estimated retirement benefits to periods
In calculation of retirement benefit obligations, Yodogawa Steel uses the straight-line method for attributing estimatedretirement benefits to period up to the end of the current fiscal year.
2) Amortization of actuarial differences and past service cost
Past service cost is amortized and expensed by the straight-line method over a certain period (mainly 10 years) within the
average remaining years of service of the eligible employees when incurred.
Actuarial differences are amortized by the straight-line method over a certain period (mainly 10 years) within the averageremaining years of service of the eligible employees when incurred and expensed in the year following the fiscal year inwhich such differences are recognized.

15

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/18

3) Adoption of the simplified method in small-scale companies
Some consolidated subsidiaries calculate net defined benefit liability and retirement benefit expenses by using a simplified
method in which the retirement benefit obligations are equal to the amount that would be paid if all employees voluntarily
requested retirement benefits at the end of the fiscal year.
(5) Recognition of significant revenues and expenses
Recognition criteria for recording amount and cost of completed construction contracts
1) For contracted work of which the outcome by the end of the current fiscal year can be reliably estimated, thepercentage-of-completion method (with the percentage of completion estimated on the cost-to-cost basis) is applied.
2) The completed-contract method is applied to other contracted work.
(6) Translation of significant foreign currency-denominated assets and liabilities
Foreign currency-denominated receivables and payables are translated into Japanese yen at the spot exchange rate on the
consolidated balance sheet date and resulting exchange gains or losses are recognized in profit or loss. Assets andliabilities of overseas subsidiaries are translated into Japanese yen at the spot exchange rate of their balance sheet dates,
and income and expenses are translated into Japanese yen at the average exchange rates for the period. The resulting
exchange gains or losses are included in foreign currency translation adjustment and non -controlling interests under the net
assets section.
(7) Method of significant hedge accounting
1) Hedging method
The deferred hedge accounting is used. However, the allocation method is used for forward exchange contracts that meetcertain hedge accounting criteria.
2) Hedging instruments and hedged items
Hedging instruments:
Hedged items:
Forward exchange contracts
Receivables and payables denominated in foreign currencies
3) Hedging policy
Hedging is used to reduce risk exposure for hedged items.
4) Method for assessing hedge effectivenessFor foreign currency-denominated receivables and payables with forward exchange contracts, the assessment of hedge
effectiveness is omitted because hedges are assumed to completely offset changes in cash flows since the significant terms
for hedging instruments and hedged items are the same.
(8) Amortization method and period of goodwill
Goodwill is amortized using the straight-line method over a period of five years.
(9) Cash and cash equivalents in the consolidated statement of cash flows
Cash and cash equivalents consists of cash on hand, deposits that can be withdrawn on demand, and short-term investments,
with maturities of three months or less, that are readily convertible to cash and present insignificant risk of change invalue.
(10) Accounting for consumption taxes
All amounts stated are exclusive of national and local consumption taxes. Non-deductible national and local consumption
taxes are changed to expenses in the current fiscal year.

16

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/18

Notes to Consolidated Balance Sheet*1. Assets pledged as collateral and liabilities with collateral
Assets pledged as collateral are as follows:(Millions of yen)
FY3/18(as of Mar. 31, 2018)
60

FY3/17(as of Mar. 31, 2017)
Cash and deposits

60

Investment securities

16

6

Other (Investment and other assets)

83

40

159

107

52

(Millions of yen)
FY3/18(as of Mar. 31, 2018)
51

FY3/17(as of Mar. 31, 2017)
5,017(Millions of yen)
FY3/18(as of Mar. 31, 2018)
5,536

Total
Liabilities with collateral are as follows:
FY3/17(as of Mar. 31, 2017)
Other current liabilities*2. The following items are applicable to non-consolidated subsidiaries and affiliates.

Investment securities (stocks)
3. Contingent liabilities(1) Guaranteed debt

Debt guarantees are provided for loans from financial institutions and other lenders to companies other than consolidated
subsidiaries.
(Millions of yen)
FY3/17
FY3/18(as of Mar. 31, 2017)(as of Mar. 31, 2018)
YBMH
80
127
YODOKO (THAILAND) CO.,LTD.
48
PCM STEEL PROCESSING SDN.BHD.

2(2) Other contingent liabilities
FY3/17(as of Mar. 31, 2017)
Yodogawa Steel made repairs and provided other services formachinery that was delivered to a customer in Africa. The
machinery did not operate properly, was damaged during
shipment and had other problems.
Yodogawa Steel may be required to make additional
payments for the repair expenses of approximately 300
million yen, which should not be borne by Yodogawa Steel,depending on the outcome of negotiations with thesubcontractor for this transaction.

FY3/18(as of Mar. 31, 2018)-

Regarding contingent liabilities for the previous fiscal year, court arbitration resulted in the decision to finish
negotiation with the subcontractor during the current fiscal year. In conjunction with this decision, an arbitration
settlement cost of 120 million yen is included in non-operating expenses.

17

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/18*4. In accordance with the Law Concerning Revaluation of Land (Law No. 34, March 31, 1998), some consolidated
subsidiaries and equity-method affiliates reevaluated land used for business operations. The equity-method portion of theland revaluation difference resulting from this reevaluation is included in net assets as a revaluation reserve for land.
- Method of revaluation: Revaluation is conducted in accordance with Article 2, Paragraph 3 and 4 of the Ordinance
Implementing the Law Concerning Revaluation of Land (No. 119 of the 1998 Cabinet Order,
promulgated on March 31, 1998),.
- Date of revaluation:

March 31, 2000
(Millions of yen)
FY3/18(as of Mar. 31, 2018)

FY3/17(as of Mar. 31, 2017)
Difference between the market value of land for revaluation
and book value of the said land after revaluation
Portion of difference for leased land, etc.
- Date of revaluation:

(328)

(330)

(12)

(12)

March 31, 2002
(Millions of yen)
FY3/18(as of Mar. 31, 2018)

FY3/17(as of Mar. 31, 2017)
Difference between the market value of land for revaluation
and book value of the said land after revaluation
Portion of difference for leased land, etc.

(604)

(572)

(285)

(285)

*5. Yodogawa Steel has committed line agreements with a number of financial institutions in order to procure funds forworking capital whenever needed. The unused balance under the commitment lines of credit at the end of the fiscal year
is as follows.
(Millions of yen)
FY3/17
FY3/18(as of Mar. 31, 2017)(as of Mar. 31, 2018)
Total commitment line of credit
17,95017,010Credit used
Unused balance

18

-

-

17,95017,010Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/18

Notes to Consolidated Statement of Income*1. The ending inventory is the amount written down to reflect decline in profitability. The following loss on valuation of
inventories is included in cost of sales.
(Millions of yen)
FY3/17
FY3/18(Apr. 1, 2016 to Mar. 31, 2017)(Apr. 1, 2017 to Mar. 31, 2018)
(339)

77

*2. Major items and amounts of selling, general and administrative expenses are as follows:(Millions of yen)
FY3/17
FY3/18(Apr. 1, 2016 to Mar. 31, 2017) (Apr. 1, 2017 to Mar. 31, 2018)
360
372

Provision for bonuses
Retirement benefit expenses

594

394

Freightage expenses

5,106

5,427

Salaries and allowances

3,835

4,291

*3. Total amount of research and development expenses included in general and administrative expenses(Millions of yen)
FY3/18(Apr. 1, 2017 to Mar. 31, 2018)
549

FY3/17(Apr. 1, 2016 to Mar. 31, 2017)
525*4. Breakdown of gain on sales of non-current assets is as follows:(Millions of yen)

Machinery, equipment and vehicles

FY3/17
FY3/18(Apr. 1, 2016 to Mar. 31, 2017) (Apr. 1, 2017 to Mar. 31, 2018)
1
1

Land

1

-

Other (property, plant and equipment)

0

0

2

1

Total
*5. Breakdown of loss on sales and retirement of non-current assets is as follows:(Millions of yen)

Buildings and structures

FY3/17
FY3/18(Apr. 1, 2016 to Mar. 31, 2017) (Apr. 1, 2017 to Mar. 31, 2018)
55
64

Machinery, equipment and vehicles

21

24

Other (property, plant and equipment)

15

9

Other (intangible assets)

0

0

93

99

Total

19

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/18*6. The Yodogawa Steel Group recognized an impairment loss on the following asset groups.
FY3/17 (Apr. 1, 2016 to Mar. 31, 2017)
Location(Millions of yen)Use

Anhui, China

Production equipment

Miyazaki City, Miyazaki

Idle assets

Type
Machinery, equipment andbuildings
Land

AmountIkoma City, Nara

Idle assets

Land

0

Suzaka City, Nagano

Idle assets

Land

0

714
22

Yodogawa Steel and its consolidated subsidiaries group assets based on asset classifications used for managerial accounting
for monitoring the performance of businesses on a regular basis. In the fiscal year ended March 31, 201 7, the book value of
production equipment at YSS, where business operations have been consistently unprofitable, was written down to therecoverable amount and this impairment loss of 714 million yen (679 million yen for machinery and equipment and 34
million yen for buildings) was recognized as an extraordinary loss. In addition, for idle assets with no prospects for use in the
future where the market value has decreased, the book value was written down to the recoverable amount and this impairment
loss of 23 million yen (all for land) was recognized as an extraordinary loss. For the recoverable amount, net selling prices
are calculated based on the residual value for machinery and equipment, and real estate appraisals and property tax valuations
for land and buildings.
FY3/18 (Apr. 1, 2017 to Mar. 31, 2018)
Location(Millions of yen)
Use

Type

AmountMiyazaki City, Miyazaki

Idle assets

Land

3

Suzaka City, Nagano

Idle assets

Land

0

Yodogawa Steel and its consolidated subsidiaries group assets based on asset classifications used for managerial accounting
for monitoring the performance of businesses on a regular basis. In the fiscal year ended March 31, 2018, for idl e assets withno prospects for use in the future where the market value has decreased, the book value was written down to the recoverable
amount and this impairment loss of 3 million yen (all for land) was recognized as an extraordinary loss. For the recoverable
amount, net selling prices are calculated based on property tax valuations.

20

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/18

Notes to Consolidated Statement of Comprehensive Income* Reclassification adjustments and tax effect with respect to other comprehensive income(Millions of yen)
FY3/17
FY3/18(Apr. 1, 2016 to Mar. 31, 2017) (Apr. 1, 2017 to Mar. 31, 2018)
Valuation difference on available-for-sale securities:
Amount incurred during the year

5,089

Reclassification adjustments
Before tax effect adjustments
Tax effect

2,851

6

(226)

5,096

2,624

(1,371)

(750)

3,725

1,873

Amount incurred during the year--

Reclassification adjustments--

Before tax effect adjustments--

Tax effect--Revaluation reserve for land

-

-

(734)

2,065

Valuation difference on available-for-sale securities
Revaluation reserve for land:

Foreign currency translation adjustment:
Amount incurred during the year
Reclassification adjustments
Before tax effect adjustments
Tax effectForeign currency translation adjustment

-

-

(734)

2,065

-

-

(734)

2,065

Remeasurements of defined benefit plans, net of tax:
Amount incurred during the year

222

94

Reclassification adjustments

278

768

501

862

(191)

(226)

309

636

22

43

-

-

22

43

3,322

4,618

Before tax effect adjustments
Tax effectRemeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted
for using equity method:Amount incurred during the year
Reclassification adjustments
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income

21Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/18

Notes to Consolidated Statement of Changes in Equity
FY3/17 (Apr. 1, 2016 to Mar. 31, 2017)
1. Type and number of outstanding shares and treasury shares
Number of shares
as of Apr. 1, 2016
Outstanding shares
Common stock
Total

Increase(Thousands of shares)
Number of shares
as of Mar. 31, 2017

Decrease

35,837--35,83735,837--35,837

5,363

670

4

6,028

Treasury shares
Common stock (Notes 1 and 2)

Total
5,363
670
4
6,028
Notes: 1. An increase of 670 thousand shares in the number of treasury shares is due to an increase of 667 thousand sharesfrom the acquisition of treasury shares based on a resolution by the Board of Directors, an increase of 1 thousand
shares from the purchase of shares less than one unit, and the return of 1 thousand shares of treasury shares(Yodogawa Steel Works shares) that an equity-method affiliate had acquired.
2. The decrease of 4 thousand shares in the number of treasury shares is due to a decrease of 4 thousand shares toprovide stock to individuals who exercised stock options and a decrease of 0 thousand shares due to the transfer ofshares less than one unit in response to purchase requests.
2. Share acquisition rights and treasury share acquisition rights
Number of shares subject to share acquisition rights
Type of shares(Thousands of shares)
Details of share
Category
subject to shareacquisition rights
As of Apr.
As of Mar.
acquisition rights
Increase
Decrease
1, 201631, 2017
FilingShare acquisition
company
rights as stock options(Parent)
Total-

Balance as ofMar. 31, 2017
(Millions of
yen)
205
205

3. Dividends(1) Dividend payment
Resolution

Type of share

Board of Directors’ meetingon May 10, 2016
Board of Directors’ meetingon Nov. 2, 2016

Commonstock
Commonstock

Total dividends(Millions of yen)

Dividend pershare (Yen)Record date

Effective date

768

25

Mar. 31, 2016

Jun. 24, 2016

906

30

Sep. 30, 2016

Dec. 1, 2016

(2) Dividends with a record date in FY3/17 but an effective date in FY3/18
Type of
Total dividends
Source of
Resolution
share(Millions of yen)funds
Board of Directors’ meeting
CommonRetained
1,203
on May 10, 2017stock
earnings

22

Dividend pershare (Yen)Record date

Effective date

40

Mar. 31, 2017

Jun. 23, 2017

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/18

FY3/18 (Apr. 1, 2017 to Mar. 31, 2018)
1. Type of number of outstanding shares and treasury shares
Number of shares
as of Apr. 1, 2017

Increase(Thousands of shares)
Number of shares
as of Mar. 31, 2018

Decrease

Outstanding shares
Common stockTotal

35,837--35,83735,837--35,837

6,028

162

6

6,185

Treasury shares
Common stock (Notes 1 and 2)

Total
6,028
162
6
6,185
Notes: 1. An increase of 162 thousand shares in the number of treasury shares is due to an increase of 160 thousand sharesfrom the acquisition of treasury shares based on a resolution by the Board of Directors, an increase of 1 thousand
shares from the purchase of shares less than one unit, and the return of 0 thousand shares of treasury shares(Yodogawa Steel Works shares) that an equity-method affiliate had acquired.
2. The decrease of 6 thousand shares in the number of treasury shares is due to a decrease of 6 thousand shares toprovide stock to individuals who exercised stock options and a decrease of 0 thousand shares due to the transfer ofshares less than one unit in response to purchase requests
2. Share acquisition rights and treasury share acquisition rights
Number of shares subject to s share acquisition rights
Type of shares(Thousands of shares)
Details of share
Category
subject to shareacquisition rights
As of Apr.
As of Mar.
acquisition rights
Increase
Decrease
1, 201731, 2018
FilingShare acquisition
company
rights as stock options(Parent)
Total-

Balance as ofMar. 31, 2018
(Millions of
yen)
223
223

3. Dividends(1) Dividend payment
Resolution

Type of share

Board of Directors’ meetingon May 10, 2017
Board of Directors’ meetingon Nov. 2, 2017

Commonstock
Commonstock

Total dividends(Millions of yen)

Dividend pershare (Yen)Record date

Effective date

1,203

40

Mar. 31, 2017

Jun. 23, 2017

1,047

35

Sep. 30, 2017

Dec. 1, 2017

(2) Dividends with a record date in FY3/18 but an effective date in FY3/19
Type of
Total dividends
Source of
Resolution
share(Millions of yen)funds
Board of Directors’ meeting
CommonRetained
1,197
on May 10, 2018stock
earnings

Dividend pershare (Yen)Record date

Effective date

40

Mar. 31, 2018

Jun. 25, 2018

Notes to Consolidated Statement of Cash Flows* Reconciliation of cash and cash equivalents at the end of the fiscal year and amounts in the consolidated balance sheet(Millions of yen)
FY3/17
FY3/18(Apr. 1, 2016 to Mar. 31, 2017) (Apr. 1, 2017 to Mar. 31, 2018)
Cash and deposits
40,76130,716
Trust beneficiary rights included in current assets and

-

1,000

Time deposits with maturities over three months(1,714)(4,438)Cash and cash equivalents

39,04727,277other items

23

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/18

Segment Information
1. Overview of reportable segments
Segments used for financial reporting are the Yodogawa Steel Group’s constituent units for which separate
financial information is available and for which the Board of Directors performs periodic studies for the purposesof determining the allocation of resources and evaluating performance.
The Yodogawa Steel Group has business divisions based on the products and services of Yodogawa Steel and its
consolidated subsidiaries. Each division determines strategies and conducts business operations for its products
and services. Accordingly, the Yodogawa Steel Group is composed of segments classified by products or services
based on the business divisions and there are four reportable segments: Steel Sheet -related business, Rollbusiness, Grating business and Real Estate business.
The Steel Sheet-related business manufactures and sells cold-rolled steel sheets, steel strips, plated steel sheets,galvanized steel sheets and other steel sheets, manufactures and sells building materials (roofing and printed
products, liner panels, siding and other products) and exterior products (storage sheds, garages, bicycle parking
units, trash receptacles and other products), and performs design and contracting for construction. The Rollbusiness manufactures and sells rolls for section steel, rolls for non -ferrous metals and other products. The
Grating business manufactures and sells gratings. The Real Estate business is engaged in leasing and buying andselling buildings, parking lots and other real estate.

2. Calculation method for net sales, profit/loss, assets, and other items for each reportable segment
The accounting methods for reportable segments are generally the same as those listed in “Significant Accounting
Policies in the Preparation of Consolidated Financial Statements.”
3. Information related to net sales, profit/loss, assets, and other items for each reportable segment
FY3/17 (Apr. 1, 2016 to Mar. 31, 2017)
Reportable segments
Steel
Roll
Grating
Sheet-related
Business BusinessBusinessReal
EstateBusiness

Total

Others(Note 1)

Total

(Millions of yen)Amounts
shown on the
Adjustment consolidated
financialstatements

Net sales
External sales
Inter-segment
sales and transfers
Total

142,811

3,385

3,672

995

150,864

-

-

-

442

442

142,811

3,385

3,672

1,438

151,307

Segment profit

12,969

264

162

758

14,154

Segment assets

127,861

3,161

3,507

9,381

143,9113,356 154,221-

154,2213,104(3,104)-

6,018 157,326(3,104)Note 2(1,302)
Note 456,097

154,221Note 3
13,1682,662

316

14,471

9,968 153,880

209,977

Other items
3,475
157
73
91
3,797
325
4,122
46
4,169
Depreciation
Investment in
4,089
384
2
4,477
4,477
4,477
equity-method
affiliates
Increases inproperty, plant
Note 5
4,475
62
19
1,074
5,631
171
5,803
5,828
and equipment
25
and intangible
assets
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 (1,310) million yen and an elimination forinter-segment transactions of 8 million yen.

24

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/18

3. Segment profit is adjusted to be consistent with the operating profit on the consolidated statement of income.
4. The adjustment to segment assets includes corporate assets of 56,401 million yen and an elimination forinter-segment transactions of (303) million yen.
5. The adjustment of 25 million yen to increases in property, plant and equipment and intangible assets is capital
expenditures mainly for corporate tools, furniture and fixtures.
FY3/18 (Apr. 1, 2017 to Mar. 31, 2018)
Reportable segments
Steel
Roll
Sheet-related
Business
Business

Grating
BusinessReal
EstateBusiness

Total

Others(Note 1)

Total

(Millions of yen)Amounts
shown on the
Adjustment consolidated
financialstatements

Net sales
External sales
Inter-segment
sales and transfers
Total

161,674

3,759

3,547

1,067

170,048

-

-

-

442

442

161,674

3,759

3,547

1,509

170,490

Segment profit

10,818

57

114

736

11,727

Segment assets

133,372

3,354

3,472

9,716

149,915

3,756 173,805-

173,805

3,107(3,107)-

6,421 176,912(3,107)Note 2(1,232)
Note 456,423

173,805
Note 3
10,8562,664

361

12,0899,802 159,718

216,142

Other items
3,631
134
64
124
3,954
319
4,274
44
4,318
Depreciation
Investment in
4,380
407
3
4,791
4,791
4,791
equity-method
affiliates
Increases inproperty, plant
Note 5
2,588
42
32
225
2,888
238
3,126
3,186
and equipment
59
and intangible
assets
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 (1,236) mill ion yen and an elimination forinter-segment transactions of 4 million yen.
3. Segment profit is adjusted to be consistent with the operating profit on the consolidated statement of income.
4. The adjustment to segment assets includes corporate assets of 56,699 million yen and an elimination forinter-segment transactions of (275) million yen.
5. The adjustment of 59 million yen to increases in property, plant and equipment and intangible assets is capital
expenditures mainly for corporate software.

25

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/18

Per-share Information(Yen)
FY3/17(Apr. 1, 2016 to Mar. 31, 2017)

FY3/18(Apr. 1, 2017 to Mar. 31, 2018)

4,805.41
224.27223.38

Net assets per share
Net income per share

Diluted net income per share
Note: Basis for calculation of net income per share and diluted net income per share is as follows.

5,112.17
247.98246.93

FY3/17(Apr. 1, 2016 to Mar. 31, 2017)

FY3/18(Apr. 1, 2017 to Mar. 31, 2018)

6,734

7,360

-

-

6,734

7,360

30,03029,680

-

-

119

125

[119]

[125]

Net income per share
Profit attributable to owners of parent(Millions of yen)Amount not available to common shareholders(Millions of yen)
Profit attributable to common shareholders of parent(Millions of yen)
Average number of common shares outstanding
during period (Thousands of shares)
Diluted net income per share
Adjustment to profit attributable to owners of parent(Millions of yen)
Increase in the number of common shares (Thousandsof shares)[of which share acquisition rights (Thousands ofshares)]Summary of potential stock not included in thecalculation of diluted net income per share since there
was no dilutive effect-

Subsequent Events
Not applicable.

26

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/18

4. Non-consolidated Financial Statements(1) Non-consolidated Balance Sheet
FY3/17(as of Mar. 31, 2017)
AssetsCurrent assets
Cash and deposits
Notes receivable-trade
Accounts receivable-trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Prepaid expenses
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Structures
Machinery and equipment
VehiclesTools, furniture and fixtures
Land
Construction in progress
Total property, plant and equipment
Intangible assets
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Long-term loans receivable
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

27(Millions of yen)
FY3/18(as of Mar. 31, 2018)

17,342
1,868
34,925
9,858
2,445
5,240
66
620
1,906
(3)
74,27013,011
1,783
37,966
2,589
12,087
3,148
6,518
62
503
1,237
(4)
78,903

8,039
762
6,953
15
375
13,58969
29,806

7,827
792
6,011
8
429
13,588269
28,927

104
360
465

142
422
564

35,31829,2120492(0)65,024
95,296
169,567

37,962
29,293255
67,51197,003
175,907

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/18

FY3/17(as of Mar. 31, 2017)
Liabilities
Current liabilities
Notes payable-trade
Accounts payable-trade
Short-term loans payable
Accounts payable - otherAccrued expenses
Income taxes payable
Advances received
Deposits received
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Provision for retirement benefits
Long-term guarantee deposited
Deferred tax liabilities
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Legal capital surplus
Other capital surplus
Total capital surpluses
Retained earnings
Other retained earnings
Reserve for advanced depreciation of non-current assets
Reserve for special depreciation
General reserve
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Total valuation and translation adjustments
Share acquisition rights
Total net assets
Total liabilities and net assets

28(Millions of yen)
FY3/18(as of Mar. 31, 2018)

2,917
11,860
1,940
2,018
2,149
1,843
83
102
926
1,023
24,865

2,989
12,001
1,940
999
2,171
1,508
98
174
931
704
23,518

4,691
1,105
4,381
239
509
10,92735,792

5,106
1,270
4,823
241
420
11,86235,38023,22023,2205,805
15,58821,393

5,805
15,582
21,387967
635
71,382
15,171
88,156(13,369)
119,402931
499
71,382
20,63393,447(13,846)
124,209

14,167
14,167
205
133,774
169,567

16,09316,093
223
140,526
175,907

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/18(2) Non-consolidated Statement of Income
FY3/17(Apr. 1, 2016 to Mar. 31, 2017)(Millions of yen)
FY3/18(Apr. 1, 2017 to Mar. 31, 2018)

Net sales

97,043

106,357

Cost of sales

75,37784,781Gross profit

21,666

21,575

Selling, general and administrative expenses

13,67913,774

Operating profit

7,986

7,801

Non-operating income
Interest income

194

238

Dividend income

1,261

2,378

-

200

Gain on sales of investment securities
Other
Total non-operating income

183

209

1,639

3,026

51

60

Non-operating expenses
Interest expenses

-

120

Other

776

294

Total non-operating expenses

827

475

8,798

10,352Gain on sales of shares of subsidiaries and associates-

23

Total extraordinary income-

23

Loss on sales and retirement of non-current assets

68

70

Impairment loss

22

3

Loss on valuation of shares of subsidiaries andassociates

134

86

Loss on liquidation of subsidiaries and associates

-

33

226

193

Profit before income taxes

8,572

10,182

Income taxes - current

2,939

2,850

Income taxes - deferred

(305)

(209)

Total income taxes

2,634

2,640

Profit

5,938

7,541

Arbitration settlement cost

Ordinary profit
Extraordinary income

Extraordinary losses

Total extraordinary losses

29

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/18(3) Non-consolidated Statement of Changes in Equity
FY3/17 (Apr. 1, 2016 to Mar. 31, 2017)(Millions of yen)
Shareholders’ equity
Capital surplus

Balance at
beginning ofcurrent period
Changes of items
during period
Reversal ofreserve foradvanceddepreciation of
non-current assets
Reversal ofreserve for special
depreciation
Dividends ofsurplusProfitPurchase oftreasury shares
Disposal oftreasury shares
Net changes of
items other thanshareholders’equityTotal changes of
items during period
Balance at end ofcurrent period

Capital
stock

Legal
capitalsurplus

Othercapitalsurplus23,2205,805

15,590Retained earnings

Total
capitalsurplus21,395

Other retained earnings
Reserve foradvanced
Reserve forGeneraldepreciation
specialreserveof non-current depreciation
assets
1,004

774

71,382Retainedearnings
brought
forwardTotal
retainedearnings

10,731

83,893

36

-

139

-

(1,675)(1,675)

5,938

5,938

(36)

(139)

(1)

(1)

-

-

(1)

(1)

(36)

(139)

-

4,439

4,263

23,2205,805

15,58821,393967

635

71,382

15,171

88,156

Shareholders’ equity
Valuation and translation adjustments
Total
Valuation difference Total valuation
Treasuryshareholders’ on available-for-sale and translation
sharesequitysecurities
adjustments
Balance at beginning ofcurrent period
Changes of items during
periodReversal of reserve foradvanced depreciation of
non-current assets
Reversal of reserve for
special depreciation
Dividends of surplus
ProfitPurchase of treasury
shares
Disposal of treasury
sharesNet changes of items otherthan shareholders’ equity
Total changes of items
during period
Balance at end of current
period(11,571)

116,938

10,542

10,542

Shareacquisitionrights177

Total net assets

127,658

-

-

-

-

(1,675)(1,675)

5,938

5,938

(1,807)(1,807)(1,807)

9

8

8
3,624

3,624

27

3,651

(1,797)

2,463

3,624

3,624

27

6,115

(13,369)

119,402

14,167

14,167

205

133,77430

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for FY3/18

FY3/18 (Apr. 1, 2017 to Mar. 31, 2018)(Millions of yen)
Shareholders’ equity
Capital surplus

Balance at
beginning ofcurrent period
Changes of items
during period
Reversal ofreserve foradvanceddepreciation of
non-current assets
Reversal ofreserve for special
depreciation
Dividends ofsurplusProfitPurchase oftreasury shares
Disposal oftreasury shares
Net changes of
items other thanshareholders’equityTotal changes of
items during period
Balance at end ofcurrent period

Capital
stock

Legal
capitalsurplus

Othercapitalsurplus23,2205,805

15,588Retained earnings

Total
capitalsurplus21,393

Other retained earnings
Reserve foradvanced
Reserve forGeneraldepreciation
specialreserveof non-current depreciation
assets967

635

71,382Retainedearnings
brought
forwardTotal
retainedearnings

15,171

88,156

35

-

136

-

(2,251)(2,251)

7,541

7,541

(35)

(136)

(5)

(5)

-

-

(5)

(5)

(35)

(136)

-

5,462

5,290

23,2205,805

15,582

21,387931

499

71,382

20,63393,447

Shareholders’ equity
Valuation and translation adjustments
Total
Valuation difference Total valuation
Treasuryshareholders’ on available-for-sale and translation
sharesequitysecurities
adjustments
Balance at beginning ofcurrent period
Changes of items during
periodReversal of reserve foradvanced depreciation of
non-current assets
Reversal of reserve for
special depreciation
Dividends of surplus
ProfitPurchase of treasury
shares
Disposal of treasury
sharesNet changes of items otherthan shareholders’ equity
Total changes of items
during period
Balance at end of current
period(13,369)

119,402

14,167

14,167

Shareacquisitionrights205

Total net assets

133,774

-

-

-

-

(2,251)(2,251)

7,541

7,541

(492)

(492)

(492)

15

9

9
1,926

1,926

18

1,944

(477)

4,807

1,926

1,926

18

6,751

(13,846)

124,209

16,09316,093

223

140,526

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 ofreaders who prefer an English translation.
31