February 6, 2024

Summary of the Consolidated Financial Results for the Third Quarterof the Fiscal Year Ending March 31, 2024 (FY3/24)(Nine Months Ended December 31, 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:
February 13, 2024
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 Third Quarter (April 1, 2023 to December 31, 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

Profit attributable toowners of parent

Ordinary profit% Millions of yen% Millions of yen

Nine months ended Dec. 31, 2023
153,465(10.5)
8,939(17.0)
11,948(18.0)
Nine months ended Dec. 31, 2022
171,562
17.8
10,771
5.1
14,5659.2
Note: Comprehensive income (millions of yen): Nine months ended Dec. 31, 2023: 16,728 (up 25.4%)
Nine months ended Dec. 31, 2022: 13,337 (up 31.1%)
Diluted net income
Net income per shareper share
Nine months ended Dec. 31, 2023
Nine months ended Dec. 31, 2022

Yen

Yen

268.39293.84267.65292.90

%

7,751
8,477

(8.6)
10.6

(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Shareholders’ equity ratio

Millions of yen

As of Dec. 31, 2023
260,679
251,057
As of Mar. 31, 2023
Reference: Shareholders’ equity (millions of yen):
As of Dec. 31, 2023:
190,156
As of Mar. 31, 2023:%

214,275
201,906

72.9
71.6

179,673

2. Dividends
1Q-endDividend per share
3Q-end2Q-endYen

Year-end

Total

Yen

Yen

Yen

Yen

Fiscal year ended Mar. 31, 2023–
40.00
Fiscal year ending Mar. 31, 2024–
55.00
Fiscal year ending Mar. 31, 2024
(Forecast)
Note: Revisions to the most recently announced dividend forecast: None

–
–

71.00

111.0055.00

110.003. Consolidated Forecasts for FY3/24 (April 1, 2023 to March 31, 2024)
Net sales
Millions of yen(Percentages represent year-on-year changes)
Profit attributable to
Net income
Ordinary profit
owners of parent
per share

Operating profit%

Millions of yen

Millions of yen%

Millions of yen%

Yen

Full year
205,000(7.0)
11,400 (10.0)
14,500Note: Revisions to the most recently announced consolidated earnings forecast: Yes%(18.0)

9,100(14.1)

315.06

For further details, please refer to“1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanat ion ofConsolidated Forecast and Other Forward-looking Statements” on page 3.

* 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 Dec. 31, 2023:

34,837,230 shares

As of Mar. 31, 2023:

34,837,230 shares

As of Mar. 31, 2023:

5,966,020 shares

Nine months ended Dec. 31, 2022:

28,851,376 shares

2) Number of treasury shares at the end of the period
As of Dec. 31, 2023:

5,946,059 shares

3) Average number of shares outstanding during the period
Nine months ended Dec. 31, 2023: 28,880,814 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 t he
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 3Q 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 Nine-month Period

7

Quarterly Consolidated Statement of Comprehensive Income
For the Nine-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 3Q of FY3/24

1. Qualitative information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
During the first nine months of the fiscal year ending March 31, 2024, there was a broad -based slow economic
recovery in Japan as the economic activities began returning to normal due to the progress of the “With Corona”
policy, such as reclassifying COVID-19’s category from Class 2 to Class 5, a common infectious disease. Despite
this improvement, some weakness was seen in housing and non-housing starts partly due to soaring construction
material prices.
Looking at the world economy, in the United States, consumer spending remained strong. While at the same time,in China, the economy is stagnating 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 been resolved and byother factors, housing construction starts and machinery production declined. Under the circumstances, order andproduction 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.
In such an environment, the Yodogawa Steel Group’s net sales for the first nine months decreased 18,096 million
yen from the same period of the previous fiscal year to 153,465 million yen. Operating profit decreased 1,832
million yen to 8,939 million yen, ordinary profit decreased 2,617 million yen to 11,948 million yen, and profit
attributable to owners of parent decreased 726 million yen to 7,751 million yen.
In Japan, sales and earnings decreased year on year mainly due to lower sales of steel sheets resulting from adecline in sales volume.
Overseas, sales decreased year on year mainly due to lower sales at Taiwan subsidiary Sheng Yu Steel Co., Ltd.
(SYSCO), but earnings improved.
Business segment performance was as follows.
1) Steel Sheet-related Business
Sales and earnings decreased year on year with net sales of 145,857 million yen and operating profit of 8,896
million yen.
Steel Sheets
In Japan, both sales and earnings decreased because of a decline in sales volume of both specific high -demandcustomers and general distribution as a result of stagnant demand in the building construction sector, despite therise of selling prices of all types of steel sheets.
As for overseas markets, SYSCO in Taiwan posted a year-on-year decline in sales mainly due to a decrease in sales
volume for exports and a drop in selling prices, but a slight increase in earnings mainly due to a recovery in sales
volume for the domestic market in Taiwan. Yodogawa Shengyu (Hefei) High-Tech Steel Co., Ltd. (YSS), a
subsidiary in China, suffered a downturn in business performance due to factors such as the sluggish real estatemarket. Earnings of PCM Processing (Thailand) Ltd. (PPT), a Thai subsidiary, increased chiefly because of
improved profitability, despite a decrease in sales.
Building Materials
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 2,489 million yen and operating profit was 49 million yen.
Sales increased year on year and earnings improved mainly due to improved selling prices.

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Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 3Q of FY3/24

3) Grating BusinessNet sales totaled 2,598 million yen and operating profit was 156 million yen.
Earnings rose primarily owing to improved selling prices.
4) Real Estate BusinessNet sales totaled 964 million yen and operating profit was 616 million yen.
Both sales and earnings were almost on par with the same period of the previous year.
5) Other Businesses
Net sales totaled 1,555 million yen and operating profit was 256 million yen.
Both sales and earnings were almost on par with the same period of the previous year.
(2) Explanation of Financial Position
AssetsCurrent assets increased by 3,521 million yen from the end of the previous fiscal year to 154,389 million yen. This
was attributable mainly to increases of 7,196 million yen in cash and deposits and 3,645 million yen in notes andaccounts receivable-trade, which were partially offset by decreases of 1,990 million yen in securities, 1,477 million
yen in merchandise and finished goods, 526 million yen in work in process, and 3,381 million yen in raw materials
and supplies.
Non-current assets increased by 6,100 million yen from the end of the previous fiscal year to 106,289 million yen.
This was attributable mainly to an increase of 6,014 million yen in investment securities.
Total assets increased by 9,622 million yen from the end of the previous fiscal year to 260,679 million yen.
Liabilities
Current liabilities decreased by 4,834 million yen from the end of the previous fiscal year to 30,257 million yen.
This was attributable mainly to decreases of 2,392 million yen in notes and accounts payable -trade and 2,238
million yen in income taxes payable.
Non-current liabilities increased by 2,088 million yen from the end of the previous fiscal year to 16,147 million
yen. This was attributable mainly to an increase of 1,896 million yen in deferred tax liabilities included in othernon-current liabilities.
Total liabilities decreased by 2,746 million yen from the end of the previous fiscal year to 46,404 million yen.
Net assets
Net assets increased by 12,368 million yen from the end of the previous fiscal year to 214,275 million yen. This
was attributable mainly to increases of 4,136 million yen in retained earnings, 4,130 million yen valuationdifference on available-for-sale securities, 2,193 million yen foreign currency translation adjustment, and 1,891
million yen in non-controlling interests.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
The Japanese economy is expected to recover moderately during the fiscal year 2023 mainly because of the returnof foot traffic following the downgrading of COVID-19 and easing of supply restrictions. However, there are somerisk factors such as the recent Noto Peninsula Earthquake and concerns about its impact on the economy. The
outlook for the global economy is expected to remain extremely opaque because of the Chinese economy
continuing to stall due to the sluggish real estate market, concerns about rec ession due to monetary tightening in
the Unites States and Europe, the prolonged situation in Ukraine, and new conflicts and turmoil over the Palestinian
territories in the Middle East.
In the steel markets in Japan and overseas, while increases in raw material prices used for steelmaking as well as
3

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 3Q of FY3/24

the cost of resources and energy are coming to a pause, there is an impact of the Chinese steel market on the backof the country’s stagnant economy, combined with concerns about rising geopolitical risks. Due to this situation,
the steel market, including the supply-demand balance, 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 costs 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 of the current fiscal year is based on this outlook for the economy andsteel market.

4

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 3Q 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)
Third quarter of FY3/24(as of Dec. 31, 2023)

AssetsCurrent assets
Cash and deposits

40,18947,385

Notes and accounts receivable-trade, and contract assets

49,521

53,166

Electronically recorded monetary claims-operating

4,454

5,083

Securities

4,207

2,217

Merchandise and finished goods

23,28521,807Work in process

6,476

5,949

Raw materials and supplies

19,924

16,542

Other

2,961

2,389

Allowance for doubtful accounts

(152)

(152)

150,867

154,389

Property, plant and equipment

56,60256,403

Intangible assets

2,076

2,181

Investment securities

40,193

46,208Retirement benefit asset

724

865

Other

592

630

Total current assets
Non-current assets

Investments and other assets

Total investments and other assets

41,51047,704

100,189

106,289

251,057

260,679

Notes and accounts payable-trade

17,881

15,489

Electronically recorded obligations-operating

2,987

2,971

Short-term borrowings

1,328

1,019

Income taxes payable

3,159

921

Provision for bonuses

1,259

805

971

1,623

Other

7,503

7,427

Total current liabilities

35,09230,25732

27

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

5,659

Other

8,508

10,459Total non-current liabilities

14,05816,14749,15046,404

Total liabilities

5

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 3Q of FY3/24

FY3/23(as of Mar. 31, 2023)(Millions of yen)
Third quarter of FY3/24(as of Dec. 31, 2023)

Net assets
Shareholders’ equity
Share capital

23,22023,220Capital surplus

18,267

18,278Retained earnings

126,064

130,200

Treasury shares(11,895)(11,851)

Total shareholders’ equity

155,657

159,848

Valuation difference on available-for-sale securities

16,115

20,246

Revaluation reserve for land

1,529

1,505

Foreign currency translation adjustment

5,958

8,151

Accumulated other comprehensive income

Remeasurements of defined benefit plans
Total accumulated other comprehensive income

412

405

24,01630,308

Share acquisition rights

140

133

Non-controlling interests

22,092

23,984

Total net assets

201,906

214,275

251,057

260,679

Total liabilities and net assets

6

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 3Q of FY3/24(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statement of Income)(For the Nine-month Period)First nine months of FY3/23(Apr. 1, 2022 to Dec. 31, 2022)(Millions of yen)First nine months of FY3/24(Apr. 1, 2023 to Dec. 31, 2023)

Net sales

171,562

153,465

Cost of sales

145,329

129,358

Gross profit

26,232

24,106

Selling, general and administrative expenses

15,461

15,167

Operating profit

10,771

8,939

Interest income

290

413

Dividend income

1,125

999

Non-operating income

Foreign exchange gains

687

193

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

1,245

1,024

511

369

193

265

Total non-operating income

4,053

3,265

88

87

132

119

38

49

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

260

256

14,565

11,948

185

952

0

–

185

952

133

488

835

0

Extraordinary income
Gain on sale of non-current assets
Other
Total extraordinary income
Extraordinary losses
Loss on sale and retirement of non-current
assetsImpairment losses

968

488

Profit before income taxes

Total extraordinary losses

13,782

12,412

Income taxes-current

4,132

3,470

Income taxes-deferred

(12)

137

Total income taxes

4,120

3,607

Profit

9,662

8,804

Profit attributable to non-controlling interests

1,184

1,053

Profit attributable to owners of parent

8,477

7,751

7

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 3Q of FY3/24(Quarterly Consolidated Statement of Comprehensive Income)(For the Nine-month Period)First nine months of FY3/23(Apr. 1, 2022 to Dec. 31, 2022)(Millions of yen)First nine months of FY3/24(Apr. 1, 2023 to Dec. 31, 2023)

Profit

9,662

8,804

Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment(1,516)

4,108

5,159

3,743

0

–

29

10

0

61

Deferred gains or losses on hedges
Remeasurements of defined benefit plans, netof taxShare of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income

3,675

7,924

13,337

16,728

Owners of parent

10,10014,067

Non-controlling interests

3,237

2,661

Comprehensive income
Comprehensive income attributable to:8

Yodogawa Steel Works, Ltd. (5451) Consolidated Financial Results for 3Q 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 3Q of FY3/24

Segment and Other Information
Segment information
I. First nine months of FY3/23 (Apr. 1, 2022 to Dec. 31, 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
164,7682,059
2,602
925 170,355
1,206 171,562–
171,562Inter-segment
–
–
–
318
318
2,068
2,386
(2,386)–sales and transfers
Total
164,768
2,059
2,602
1,243 170,673
3,275 173,949(2,386)
171,562
Segment profit
11,199(233)
46604
11,617203 11,820(1,049)10,771(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 (1,042) million yen and an elimination
for inter-segment transactions of (6) 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 835 million yen in the first nine months of FY3/2 3.
II. First nine months of FY3/24 (Apr. 1, 2023 to Dec. 31, 2023)
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

145,857

2,489

2,598

964

151,909

–

–

–

309

309

145,857

2,489

2,598

1,274

152,218

1,555 153,465–

153,465

1,990(1,990)–3,237 155,456(1,990)

153,465

1,681

Segment profit
8,896
49
156
616
9,719
256
9,975
(1,035)
8,939
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 (1,024) million yen and an elimination forinter-segment transactions of (11) 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