1

Overview of Consolidated Results of Operations(YoY Change)

Yodogawa Steel Works, Ltd.

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

1H FY3/23

1H FY3/22

ChangeNet sales

118.52

93.87

24.65

(Gross profit)

18.86

14.96

3.89

(Selling, general and administrativeexpenses)

10.62

9.30

1.31

Operating profit

8.23

5.65

2.57

(Non‐operating income)

2.88

1.62

1.25

(Non‐operating expenses)

0.15

0.14

0.01

10.96

7.13

3.82

(Extraordinary income)

0.00

0.01

(0.01)(Extraordinary losses)

0.71

0.08

0.62

10.247.07

3.17

Ordinary profit

Profit before income taxes(Income taxes)

2.91

1.74

1.17

(Profit attributable to non‐controllinginterests)

1.47

1.22

0.25

Profit attributable to ownersof parent

5.85

4.11

1.74

203.08 yen

142.74 yen

60.3 yen

9.99

6.63

(EPS (Yen/Share)

Comprehensive income

Yodogawa Steel Group Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2023

Remarks

Change (%)

26.3%
Net sales
Increased due in part to revisions of prices ofsteel sheets in Japan and other countries

45.5%

Operating profit
Japan: Higher because of price revisions
Overseas: Lower due to China’s zero‐COVID
policy and other reasons
Non‐operating expenses (income):
Increases in dividend income and other items

53.6%

44.9%

42.5%

3.36

Comprehensive income
1H FY3/23： Profit of 7.3 billion yen, valuationdifference on available‐for‐sale securities of(2.8) billion yen, foreign currency translation
adjustment of 5.5 billion yen

Copyright (C) 2022 Yodogawa Steel Works, Ltd. All Rights Reserved

12

Overview of Consolidated Results of Operations(vs. Forecasts)

Yodogawa Steel Works, Ltd.

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

1H FY3/23

ResultsForecasts(Announced in August2022)

DifferencesNet sales

118.52115.003.52

Operating profit

8.23

9.00

(0.77)

Ordinary profit

10.96

11.00

(0.04)

Profit attributable toowners of parent

5.85

6.00

(0.15)

Remarks• Operating profit: Lower than forecast because of increases in thecost of energy and other expense categories
Yodogawa Steel Group Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2023

Copyright (C) 2022 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)

201.65154.06145.96118.52
93.87

78.26

67.46

Not
disclosed.

0.0
1H

Full year

1H

FY3/20

Full year

1H

FY3/21

Full year

1H

Full year
forecasts

FY3/22

FY3/23

Breakdown of the 24.6 billion yen increase in net sales:•Yodogawa Steel Works: +18 billion yen (58.4 → 76.4)
Higher sales of steel sheets as the sales volume remained the same and prices were revised. Higher sales of exterior
products due to strong sales of garages and large storage sheds.
•Taiwan subsidiary Sheng Yu Steel Co., Ltd. (SYSCO): +7.6 billion yen (25.4 → 33.1)
Declines in sales volumes in Taiwan and for export but sales increased because of price revisions and emphasis on export
sales, mainly to North America•
Chinese subsidiary Yodogawa Shengyu (Hefei) High‐Tech Steel Co., Ltd. (YSS): (1.7) billion yen (6.7 → 5.0)
Sales volumes decreased to building materials and home appliance companies because of lockdowns in Shanghai and otherlarge cities.
•Thai subsidiary PCM Processing (Thailand) Ltd. (PPT): +0.4 billion yen (2.0 → 2.5)
Sales increased due to steady sales of value‐added products and price revisions.
Yodogawa Steel Group Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2023

Copyright (C) 2022 Yodogawa Steel Works, Ltd. All Rights Reserved

34

Consolidated Profit and Loss

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

Consolidated operating profit

Consolidated ordinary profit

17.91

Profit attributable to owners of parent

2.90 3.31
1.99

7.42
5.48
3.86

14.34
9.79
7.88
6.25

4.20
3.05 2.91

9.78

10.96
8.23

7.13
5.65
4.11

5.85

Not
disclosed.

0.0 0.0 0.0
1H

Full year

FY3/20

1H

Full year

FY3/21

1H

Full year

1H

FY3/22

Full year
forecasts
FY3/23

Breakdown of the 2.5 billion yen increase in operating profit:•Yodogawa Steel Works: +3.1 billion yen (2.5 → 5.7)
Higher earnings mainly because of price revisions in the steel sheet business•SYSCO: +0.18 billion yen (2.8 → 2.99)
No change in earnings as benefits of higher sales of pre‐painted sheets, mainly in North America, and price revisions wereoffset by higher expenses•
YSS: (0.47) billion yen (0.09 → (0.38))
Weak sales and lower earnings mainly because of sluggish demand caused by China’s zero‐COVID policy•
PPT: +0.18 billion yen (0.01 → 0.2)
PPT was profitable as prices were revised to reflect the higher cost of raw materials
Yodogawa Steel Group Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2023

Copyright (C) 2022 Yodogawa Steel Works, Ltd. All Rights Reserved

45Segment Information

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

Net sales
1H FY3/23

1H FY3/22

Segment profit
Change (%)

1H FY3/23

1H FY3/22

Change (%)

114.04

89.80

27.0%

8.52

5.53

54.2%

Roll

1.32

1.16

13.2%

(0.21)

0.04‐Grating

1.68

1.66

1.2%

0.02

0.05

(48.3)%

Real Estate

0.61

0.62

(1.3)%

0.40

0.41(3.1)%

117.66

93.26

26.2%

8.74

6.04

44.8%

Others

0.86

0.60

41.5%0.19

0.19

1.7%

Total

118.52

93.87

26.3%

8.94

6.23

43.4%

(0.71)(0.57)

8.23

5.65

Steel Sheet‐related

Total reportablesegments

Adjustment
Amounts shown on
the consolidated
statement of income

118.52

93.87

Yodogawa Steel Group Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2023

26.3%

45.5%

Copyright (C) 2022 Yodogawa Steel Works, Ltd. All Rights Reserved

56Consolidated Financial Position

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

As of Sep. 30,2022

As of Mar. 31,
2022

Total assets

251.85244.677.18

2.9%

Current assets

154.51144.52

9.98

6.9%

Non‐current assets

97.34

100.14(2.80)(2.8)%

Liabilities

53.71

52.73

0.98

1.9%

Current liabilities

40.15

37.55

2.59

6.9%

Non‐current liabilities

13.56

15.17

(1.61)(10.6)%Net assets

198.14191.93

6.20

3.2%

Shareholders’ equity

152.05147.97

4.08

2.8%

Accumulated othercomprehensive income

22.71

22.31

0.39

1.8%

Non‐controlling interests

23.20

21.45

1.75

8.2%

BPS (Yen/Share)

6,055.7 yen

ChangeChange (%)

5,907.1 yen 148.5 yen

Shareholders’ equity

174.77170.294.47

Equity ratio

69.4%

69.6%

(0.2)pt

Yodogawa Steel Group Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2023

Remarks
Assets(Current) Increase in trade receivables,
inventories, etc.
(Non‐current) Increase in property,
plant and equipment, decrease invaluation of investment securities, etc.
Liabilities(Current) Increase in trade payables,etc.
(Non‐current) Decrease in long‐term
deferred tax liabilities, etc.
Shareholders’ equity
1H FY3/23：Profit attributable toowners of parent of 5.85 billion yen,dividends of (1.93) billion yen, etc.
Accumulated other comprehensive
incomeDecrease in valuation difference on
available‐for‐sale securities, increasein foreign currency translation
adjustment, etc.

2.6%

Copyright (C) 2022 Yodogawa Steel Works, Ltd. All Rights Reserved

6

7

Consolidated Cash Flows

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

1H
FY3/23

YoY

1H
FY3/22

ChangeChange (%)

Remarks(Amount shown is approximate)

Cash flows fromoperating activities

4.68(7.13)

11.82‐

Increase in profit before income taxes,
decrease in increase of inventories, etc.

Cash flows frominvesting activities(1.05)(3.07)

2.02‐

Increase in proceeds from sale ofinvestment securities, etc.

Cash flows fromfinancing activities(3.94)(1.52)(2.42)‐

1H FY3/23: Dividends paid of (1.95)
billion yen, etc.

Cash and cash
equivalents

32.52

32.37

0.15

0.5%

(Billions of yen)

Cash and cash equivalents at end of period
43.11

32.31

34.65

FY3/19FY3/2027.27

FY3/18

FY3/21

Yodogawa Steel Group Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2023

30.96

32.52

FY3/22

1H FY3/23

Copyright (C) 2022 Yodogawa Steel Works, Ltd. All Rights Reserved

78

Capital Expenditures and Depreciation

Yodogawa Steel Works, Ltd.

(Property, plant and equipment including construction in progress) (Billions of yen, rounded down to the nearest 10 million yen)

1H FY3/23
Capitalexpenditures(consolidated)
Depreciation(consolidated)
Capitalexpenditures(non‐consolidated)
Depreciation(non‐consolidated)(Billions of yen)

1H FY3/22

Remarks

YoY
ChangeChange (%)(Amounts shown areapproximate)

3.14

3.23(0.08)(2.8)%

No significant expenditures

2.35

1.73

0.6235.9%

A new plant at Fukui Yodoko
started operations

0.82

0.96

(0.14)(14.8)%

No significant expenditures

1.07

0.84

0.22

26.7%

Ichikawa: Depreciation ofpainting line electric
equipment and other items

Capital expenditures (consolidated)
8.74

Depreciation (consolidated)
6.91

3.66
0.95

1.80

2.22

1H

Full year
FY3/20

3.70

3.53

3.99

3.23
1.731.72
1H

6.25

Full year
FY3/21

Yodogawa Steel Group Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2023

1H

Full year

3.14

5.00

2.35

1H

FY3/22

Full year
forecasts
FY3/23Copyright (C) 2022 Yodogawa Steel Works, Ltd. All Rights Reserved

89Major Capital Expenditures

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

FY3/23After
FY3/23

Projects(incl. scheduled
completion date)Total
investments(based on bookvalue)

Yodogawa
Ichikawa Plant: Update of no. 2
Steel Works painting line electric equipment

August 2022

0.16

Update of vertical oven at the Osaka
Yodogawa
Plant for testing the performance ofSteel Works
exterior products

June 2022

0.15

September 2022

0.72

Fukui
YodokoConstruction of a new plant(Phase 2) (Total 2.83 billion yen)

SYSCO

Update of no. 2 plating line electricequipment

June 2023

Fukui
YodokoConstruction of a new plant(Phase 2) (Total 2.83 billion yen)

Spring 2023

Yodogawa Steel Group Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2023

131.5 millionNTD(About 0.55)
0.44

Copyright (C) 2022 Yodogawa Steel Works, Ltd. All Rights Reserved

910 Consolidated Forecasts

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

YoY

118.52

26.3%

Operating profit

8.23

45.5%

Ordinary profit

10.96

53.6%

5.85

42.5%

YoY

Net sales

Consolidated

Profitattributable toowners ofparent

Non‐consolidated•(Reference)

1H
results

FY3/23Full year
forecasts

Not disclosed.

2H
forecasts

YoY

Not disclosed.

Net sales

76.49

30.8%

Operating profit

5.74

124.6%

Ordinary profit

10.12

174.1%

Profit7.52

184.2%

Determining a reliable forecast at this time is not possible because of the extreme uncertainty ofthe outlook for steel prices in Japan and other countries and other aspects of the business climate.

Yodogawa Steel Group Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2023

Copyright (C) 2022 Yodogawa Steel Works, Ltd. All Rights Reserved1011 Dividends

Yodogawa Steel Works, Ltd.
Interim dividend(Yen/Shares)

Year‐end dividend
338.42

EPS (consolidated)

247.98215.60211.08203.08131.14102.00
75.00

70.00

70.00

75.00

40.00

40.00

40.00

40.00

35.00

30.00

30.00

35.00

35.00

40.00

FY3/18

FY3/19FY3/20FY3/21

FY3/22

1H FY3/23

67.00• The interim dividend will be 40 yen• No year‐end dividend forecast has been disclosed
Yodogawa Steel Group Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2023

Copyright (C) 2022 Yodogawa Steel Works, Ltd. All Rights Reserved

1112 Reference (1)Yodogawa Steel Works, Ltd.

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

122
111

109
98

10153

Not
disclosed.
0PPTYSS
SYSCO
YSW
Total

FY3/18

FY3/19FY3/20FY3/21

FY3/22

1H FY3/23

FY3/23
Forecasts

31047
62
122

3
736
63
109

3733
56
98

31032
56
101

31136
62
111

131731
5300
Not0
disclosed.
00• At SYSCO, the sales volume remained sluggish for exports and sales in Taiwan• Sales volumes down at YSS due to lockdowns of Shanghai and other large cities
Yodogawa Steel Group Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2023

Copyright (C) 2022 Yodogawa Steel Works, Ltd. All Rights Reserved1213 Reference (2)Yodogawa Steel Works, Ltd.

Yodogawa Steel Group Regional Primary Sales Volume (before eliminations for consolidation)(10,000 tons)

140

122

120

111

109
98

100

101

80
53

60
40
200
OtherOceania
North / Central / South America
Other Asia
Other Asia
(excluding Middle
Middle East)
East)(excludingChina / Hong Kong
TaiwanJapan
Total

FY3/18

FY3/19FY3/20FY3/21

FY3/22

1H FY3/23

331021601211412701587877292760
122

72561
109

62555
98

102455101102362111

3123153Yodogawa Steel Group Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2023

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