Yodogawa Steel Works, Ltd.

Yodogawa Steel Group
Financial Results Briefing Material
for the Third Quarter of the Fiscal Year Ending March 31, 2024

February 6, 2024

Yodogawa Steel Group Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2024

2Copyright (C) 2024 Yodogawa Steel Works, Ltd. All Rights Reserved

Overview of Consolidated Results of Operations

Yodogawa Steel Works, Ltd.

(Billions of yen, rounded down to the nearest 10 million yen)

3Q FY3/24

3Q FY3/23

ChangeNet sales

153.46171.56(18.09)(Gross profit)

24.10

26.23

(2.12)(Selling, general and administrativeexpenses)

15.16

15.46

(0.29)

Operating profit

8.93

10.77

(1.83)(Non-operating income)

3.26

4.05

(0.78)(Non-operating expenses)

0.25

0.26

(0.0)

11.94

14.56

(2.61)(Extraordinary income)

0.95

0.18

0.76

(Extraordinary losses)

0.48

0.96

(0.47)

12.41

13.78

(1.37)

Ordinary profit

Profit before income taxes(Income taxes)

3.60

4.12

(0.51)(Profit attributable to non-controllinginterests)

1.05

1.18

(0.13)

Profit attributable to ownersof parent

7.75

8.47

(0.72)

268.39 yen293.84 yen(25.4) yen

16.72

13.33

3.39

EPS (Yen/Share)

Comprehensive income

Yodogawa Steel Group Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2024

Change (%)

Remarks(10.5)%Net sales
Japan: Decreased due to lower sales volumeof steel sheets
Overseas: Decreased because of declines insales volume and selling prices at SYSCO inTaiwan(17.0)%

Operating profit
Decreased because price revisions were offset
by lower sales volume
Non-operating income
Gain on sale of investment securities andother items(18.0)%

Extraordinary income
Gain on sale of non-current assets
Extraordinary losses
Loss on retirement of non-current assets(9.9)%(8.6)%

Comprehensive income
3Q FY3/24䠖 Profit of 8.8 billion yen, valuationdifference on available-for-sale securities of
4.1 billion yen, foreign currency translation
adjustment of 3.7 billion yen

Copyright (C) 2024 Yodogawa Steel Works, Ltd. All Rights Reserved2

3

Consolidated Net Sales

Yodogawa Steel Works, Ltd.
(Billions of yen, rounded down to the nearest 10 million yen)

220.31205.00201.65
171.56145.96145.62

Full year

3Q

153.46104.64

3Q

Full year

FY3/21

3Q

Full year

FY3/22

3Q

FY3/23Full year forecast

FY3/24* Accounting Standard for Revenue Recognition has been applied starting withthe beginning of FY3/22. FY3/21 information in this material have beenadjusted retroactively to conform with this accounting standard.

Breakdown of the 18.09 billion yen decrease in net sales:•Yodogawa Steel Works: (13.23) billion yen (112.56→99.32)
Sales volume declined for both specific high-demand customers and general distribution due to flat construction
demand. For building material products, the sales volume of roofing materials decreased, and for exterior products,
the sales volume of storage sheds decreased.
•Taiwan subsidiary Sheng Yu Steel Co., Ltd. (SYSCO): (5.88) billion yen (43.83→37.95)
Export volume declined due to the impact of China’s steel supply-demand gap and other factors, especially in Asianmarkets.
•Chinese subsidiary Yodogawa Shengyu (Hefei) High-Tech Steel Co., Ltd. (YSS): +0.19 billion yen (8.54→8.74)
Sales volume for home appliance and exports decreased, while sales volume for building materials increased•Thai subsidiary PCM Processing (Thailand) Ltd. (PPT): (0.26) billion yen (4.00→3.74)
Sales volume for AC outdoor units decreased due to inventory adjustment
Yodogawa Steel Group Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2024

4

Copyright (C) 2024 Yodogawa Steel Works, Ltd. All Rights Reserved

Consolidated Profit and Loss

3

Yodogawa Steel Works, Ltd.
(Billions of yen, rounded down to the nearest 10 million yen)

Consolidated operating profit
Profit attributable to owners of parent

6.94
5.49
4.61

3Q

Full year
FY3/21

17.91

17.68
14.56

14.34

13.34
9.79
7.88
6.25

Consolidated ordinary profit

14.50
12.66

10.25

9.78

10.77

Full year
FY3/22

11.40

3Q

Full year
FY3/23

9.10

8.93

8.47

7.66

3Q

11.94
10.59

7.75

3Q

Full year forecast
FY3/24

Breakdown of the 1.83 billion yen decrease in operating profit:•Yodogawa Steel Works: (2.15) billion yen (9.17→7.02)
Although selling prices improved, earnings were down mainly because of a lower sales volume in the steel sheet business•SYSCO: +0.27 billion yen (1.89→2.16)
Although sales decreased because of a lower export sales volume and a decline in selling prices, there was a small
improvement in earnings due to a recovery in sales volume in Taiwan.
•YSS: (0.06) billion yen ((0.50)→(0.56))
Suffered a downturn in business performance due to factors such as the sluggish real estate market in China.
•PPT: +0.11 billion yen (0.27→0.38)
Earnings increased chiefly because of improved profitability, despite a decrease in sales.
Yodogawa Steel Group Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2024

Copyright (C) 2024 Yodogawa Steel Works, Ltd. All Rights Reserved

4Analysis of Changes in Operating Profit((1) Consolidated/YoY Change)

5

Yodogawa Steel Works, Ltd.
(Billions of yen, rounded down to the nearest 10 million yen)

0.32

10.77

0.04

8.93
(0.04)(2.15)

Copyright (C) 2024 Yodogawa Steel Works, Ltd. All Rights Reserved

Analysis of Changes in Operating Profit((2) Yodogawa Steel Works/YoY Change)

6

3Q FY3/24
Operating profit

Adjustment forconsolidation

Higher earnings at
subsidiaries in JapanHigher earnings atoverseas
subsidiaries

Lower earnings at
Yodogawa SteelWorks

3Q FY3/23
Operating profit

Yodogawa Steel Group Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2024

5Yodogawa Steel Works, Ltd.
(Billions of yen, rounded down to the nearest 10 million yen)

0.93

0.47
7.02

9.17

(0.24)(3.32)

Copyright (C) 2024 Yodogawa Steel Works, Ltd. All Rights Reserved

3Q FY3/24 Operating profit

Inventory valuation, etc.

Lower fixed and selling expenses

Lower energy costs

Changes in sales and unit prices

3Q FY3/23 Operating profit

Yodogawa Steel Group Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2024

67Segment Information

Yodogawa Steel Works, Ltd.
(Billions of yen, rounded down to the nearest 10 million yen)

Net sales
3Q FY3/24
Steel Sheetrelated

3Q FY3/23

Segment profit
Change (%)

3Q FY3/24

3Q FY3/23

Change (%)

145.85164.76(11.5)%

8.89

11.19(20.6)%

Roll

2.48

2.05

20.9%

0.04(0.23)-Grating

2.59

2.60(0.1)%

0.15

0.04

237.6%

Real Estate

0.96

0.92

4.2%

0.610.60

1.9%

151.90170.35(11.0)%

9.71

11.61(16.3)%

Others

1.55

1.20

28.9%

0.25

0.20

26.1%

Total

153.46171.56(10.5)%

9.97

11.82(15.6)%(1.03)(1.04)

8.93

10.77

Total reportablesegments

Adjustment
Amounts shownon theconsolidated
statement ofincome

153.46171.56

Yodogawa Steel Group Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 20248(10.5)%

Copyright (C) 2024 Yodogawa Steel Works, Ltd. All Rights Reserved

Segment Information (Steel Sheet-related Business (1))

Segment sales(17.0)%

7Yodogawa Steel Works, Ltd.

(Billions of yen, rounded down to the nearest 10 million yen)

250.0

192.42200.0

155.12150.0

142.41137.09FY3/20FY3/21210.95145.85100.0
50.00.0

FY3/19FY3/22

FY3/23

3Q FY3/24

Segment profit
16.0

14.21

14.0

13.31

12.0
10.0
8.0

8.89

8.25
6.05

5.89

FY3/19FY3/20

6.0
4.0
2.0
0.0

FY3/21

Yodogawa Steel Group Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2024

FY3/22

FY3/23Copyright (C) 2024 Yodogawa Steel Works, Ltd. All Rights Reserved

3Q FY3/2489Segment Information (Steel Sheet-related Business (2))

Yodogawa Steel Works, Ltd.

Steel Sheet (Japan)•For specific high-demand customers
Building materials: The sales volume of galvanized steel sheets decreased because delays
at construction projects and other reasons prevented a recovery of
demand and sales were held down by imports of inexpensive materials.
The sales volume of pre-painted steel sheets decreased because of thelow level of housing starts.
Electrical products: The sales volume was down because of a downturn following strong
demand for these products as people stayed home during thepandemic and a decline in consumer sentiment caused by inflation.
呌 Lower sales for specific high-demand customers although there were activities forraising selling prices and increasing market share.

•For general distribution
The sales volume and monetary sales decreased because of a low levelof shipments for residential and small/midsize non-residential
construction projects caused by the high cost of building materials andshortage of construction workers.
呌 In Japan, sales and earnings decreased despite the rise of selling prices of all types ofsteel sheets.

Yodogawa Steel Group Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2024

10Copyright (C) 2024 Yodogawa Steel Works, Ltd. All Rights Reserved

Segment Information (Steel Sheet-related Business (2))

9Yodogawa Steel Works, Ltd.

Steel Sheet (Overseas)• Overseas
SYSCO (Taiwan): The sales volume decreased as an unfavorable climate for exports
offset a recovery in the volume of shipments in Taiwan ofgalvanized steel sheets and pre-painted steel sheets.
呌 SYSCO sales were lower but earnings increased slightly mainly due to improvedprofitability.
YSS (China):Performance was held down by a lower sales volume ofgalvanized steel sheets and intense price-based competition in
the pre-painted steel sheet sector, although the sales volume ofthese sheets increased.

PPT (Thailand): Earnings were higher due to improved profitability despite alower sales volume caused by the reduced production atcustomers in the AC market.

Yodogawa Steel Group Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2024

Copyright (C) 2024 Yodogawa Steel Works, Ltd. All Rights Reserved

1011 References (1)Yodogawa Steel Works, Ltd.

Yodogawa Steel Group Primary Sales Volume of Steel Sheet Products(3Q; before eliminations for consolidation)(10,000 tons)

8475

747166PPTYSSSYSCO
YSWTotal

3Q FY3/20
24254475

3Q FY3/21
26233971

Yodogawa Steel Group Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2024

3Q FY3/22
28274684

3Q FY3/23
26234474

3Q FY3/24
26233566

Copyright (C) 2024 Yodogawa Steel Works, Ltd. All Rights Reserved

12 References (1)11Yodogawa Steel Works, Ltd.

Yodogawa Steel Group Primary Sales Volume of Steel Sheet Products(Full year; before eliminations for consolidation)(10,000 tons)(Figures in parenthesis are estimates)

111
98

101
95

PPTYSS
SYSCO
YSW
Total

FY3/20
3
7
33
56
98

FY3/21
31032
56
101

Yodogawa Steel Group Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2024

FY3/22
3
1136
62
111

FY3/2328295595

Copyright (C) 2024 Yodogawa Steel Works, Ltd. All Rights Reserved(88 )FY3/24 forecast
293245881213Segment Information (Steel Sheet-related Business (3))

Yodogawa Steel Works, Ltd.

Building Material (Exterior construction material products/Construction)• Sales of exterior construction material products decreased as thesales volume of siding materials was firm but the sales volume ofroofing materials declined.
• Construction sales increased due to large construction projects.

Building Material (Exterior products)• Sales remained strong for garages and large storage sheds.
• The sales volume of storage sheds declined mainly because consumers are
reluctant to make purchases due to inflation.

• Overall sales of exterior products decreased.

Yodogawa Steel Group Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2024

Copyright (C) 2024 Yodogawa Steel Works, Ltd. All Rights Reserved

14 Segment Information (Roll Business)
Segment sales

13

Yodogawa Steel Works, Ltd.

(Billions of yen, rounded down to the nearest 10 million yen)

4.00

3.50
3.50

2.83

3.00

2.92

2.68

2.48

2.34

2.50

2.00
1.50
1.00
0.50
0.00

FY3/19FY3/20FY3/21

FY3/22

FY3/23

3Q FY3/24

Segment profit
0.04

0.10

0.00
0.00
(0.10)(0.07)(0.20)(0.30)(0.26)(0.31)(0.40)(0.41)(0.50)

FY3/19FY3/20FY3/21

Yodogawa Steel Group Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2024

FY3/22

FY3/23Copyright (C) 2024 Yodogawa Steel Works, Ltd. All Rights Reserved

3Q FY3/24
14

15 Segment Information (Grating Business)
Segment sales
4.00

3.55

Yodogawa Steel Works, Ltd.

(Billions of yen, rounded down to the nearest 10 million yen)

3.48

3.52

3.50

3.44

3.50

3.00

2.592.50

2.00
1.50
1.00
0.50
0.00

FY3/19FY3/20FY3/21

FY3/22

FY3/23

3Q FY3/24

Segment profit
0.17

0.18

0.15

0.16
0.14

0.10

0.12
0.10

0.08

0.08

0.08

0.05

0.06
0.04
0.02
0.00

FY3/19FY3/20FY3/21

Yodogawa Steel Group Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2024

16

FY3/22

6.00

5.24

3Q FY3/24

Copyright (C) 2024 Yodogawa Steel Works, Ltd. All Rights Reserved

Segment Information(Real Estate Business and Other Businesses)

Segment sales

FY3/2315

Yodogawa Steel Works, Ltd.

(Billions of yen, rounded down to the nearest 10 million yen)

5.33

5.00
4.00

2.99

3.09

3.00

2.93
2.52

2.00
1.00
0.00

FY3/19FY3/20FY3/21

FY3/22

FY3/23

3Q FY3/24

Segment profit
1.30

1.40
1.20

1.07

1.03

1.06

1.02

1.00

0.87

0.80
0.60
0.40
0.20
0.00

FY3/19FY3/20FY3/21

Yodogawa Steel Group Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2024

FY3/22

FY3/23Copyright (C) 2024 Yodogawa Steel Works, Ltd. All Rights Reserved

3Q FY3/24
16

17

Segment Information(Roll, Grating, Real Estate and Other Businesses)

Yodogawa Steel Works, Ltd.

Roll Business• Sales increased year on year and earnings improved
mainly due to improved selling prices.
Grating Business• Earnings rose owing to improved selling prices despitea decline in sales volume.
Real Estate Business and Other Businesses• Both sales and earnings were almost on par with thesame period of the previous year.

Yodogawa Steel Group Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2024

Copyright (C) 2024 Yodogawa Steel Works, Ltd. All Rights Reserved

18 Consolidated Financial Position

17

Yodogawa Steel Works, Ltd.
(Billions of yen, rounded down to the nearest 10 million yen)

As of Dec. 31,
2023

As of Mar. 31,
2023

Total assets

260.67251.059.62

3.8%

Current assets

154.38150.863.52

2.3%

Non-current assets

106.28100.18

6.10

6.1%

Liabilities

46.40

49.15

(2.74)(5.6)%

Current liabilities

30.25

35.09(4.83)(13.8)%

Non-current liabilities

16.14

14.05

2.08

14.9%

Net assets

214.27201.90

12.36

6.1%

Shareholders’ equity

159.84155.65

4.19

2.7%

Accumulated othercomprehensive income

30.30

24.01

6.29

26.2%

Non-controlling interests

23.98

22.09

1.89

8.6%

BPS (Yen/Share)

6,581.8

6,223.2

358.5

Shareholders’ equity

190.15179.67

10.48

Equity ratio

72.9%

71.6%

1.3pt

Yodogawa Steel Group Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2024

ChangeChange (%)

Remarks
Assets(Current) Increase in cash anddeposits, decrease in securities, etc.
(Non-current) Increase in investment
securities, etc.
Liabilities(Current) Decrease in notes andaccounts payable-trade, etc.
(Non-current) Increase in deferred tax
liabilities, etc.
Shareholders’ equity
3Q FY3/24䠖Profit attributable toowners of parent of 7.75 billion yen,dividends of (3.63) billion yen, etc.
Accumulated other comprehensive
incomeIncrease in valuation difference on
available-for-sale securities, increasein foreign currency translation
adjustment, etc.

5.8%

Copyright (C) 2024 Yodogawa Steel Works, Ltd. All Rights Reserved18

19 Consolidated Forecasts

Yodogawa Steel Works, Ltd.
(Billions of yen, rounded down to the nearest 10 million yen)

Current
Forecast

FY3/24(As of February 6,2024)

YoY change

PreviousForecast

YoY change(%)(As of November 6,2023)

Amount%Consolidated

Net sales

205.0(7.0)%

205.0--

Operating profit

11.4(10.0)%

10.0

1.4

14.0%

Ordinary profit

14.5(18.0)%

13.1

1.4

10.7%

Profit attributable toowners of parent

9.1(14.1)%

8.2

0.9

11.0%

• Forecast lower sales and earnings due to the gap between thesupply and demand for steel caused by slow economic growth inChina and other reasons
Yodogawa Steel Group Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2024

Copyright (C) 2024 Yodogawa Steel Works, Ltd. All Rights Reserved

20 Dividends

19

Yodogawa Steel Works, Ltd.

(Yen/Shares)

Interim dividend

Year-end dividend

EPS (Consolidated)

367.13339.77(315.06)

215.58211.08131.14111.00(110.00)

67.00

71.00

(55.00)55.00

102.00
75.00

70.00

70.00

40.00

40.00

40.00

30.00

30.00

35.00

35.00

40.00

FY3/19FY3/20FY3/21

FY3/22

FY3/23

FY3/24(Figures in parenthesis are estimates)• We paid an interim dividend of 55 yen and plan to pay a dividend of 55
yen at the year’s end, making an annual dividend of 110 yen per shareYodogawa Steel Group Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2024

Copyright (C) 2024 Yodogawa Steel Works, Ltd. All Rights Reserved20