Japan Steel Works : Summary of Consolidated Financial Results for the Nine Months Ended December 31, 2022

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results for the Nine Months Ended December 31, 2022 (Based on Japanese GAAP)

				February 13, 2023
Company name:	The Japan Steel Works, Ltd.
Stock exchange listing:	Tokyo
Stock code:	5631	URL https://www.jsw.co.jp/
Representative:	Representative Director & President	toshio matsuo
Inquiries:	General Manager, General Affairs	hideo nakanishi	TEL [phone]
Department
Scheduled date to file Quarterly Securities Report:	February 13, 2023
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	No
Holding of quarterly financial results meeting:	No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the nine months ended December 31, 2022 (from April 1, 2022 to December 31, 2022)

(1) Consolidated operating results (cumulative)				Percentages indicate year-on-year changes
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
Nine months ended December 31, 2022	162,196	10.3	6,041	(40.4)	7,444	(34.3)	3,319	(63.3)
Nine months ended December 31, 2021	147,041	5.2	10,130	15.9	11,331	21.2	9,047	51.5

	Earnings per share	Diluted earnings per share
	Yen		Yen
Nine months ended December 31, 2022	45.13		-
Nine months ended December 31, 2021	123.00		-
(2) Consolidated financial position
	Total assets		Net assets	Equity ratio
	Millions of yen		Millions of yen	%
As of December 31, 2022	341,237		151,520	43.9
As of March 31, 2022	339,729		151,083	44.0

2. Cash dividends
		Annual dividends per share
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end
	Yen	Yen	Yen	Yen
Year ended March 31, 2022	-	22.50	-	34.50
Year ending March 31, 2023	-	29.00	-
Year ending March 31, 2023 (Forecast)				29.00

Total

Yen 57.00

58.00

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit	Profit		Earnings per share
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	242,000	13.2	13,000	(15.9)	14,000	(16.5)	12,000	(14.0)	163.11

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4. Notes

1. Changes in significant subsidiaries during the nine months ended December 31, 2022 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

No

(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:	No
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of December 31, 2022	74,387,779	shares	As of March 31, 2022	74,373,265	shares
Number of treasury shares at the end of the period
	As of December 31, 2022	804,316	shares	As of March 31, 2022	804,074	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Nine months ended December 31, 2022	73,569,048	shares	Nine months ended December 31, 2021	73,555,368	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

		(Millions of yen)
	As of March 31, 2022	As of December 31, 2022
Assets
Current assets
Cash and deposits	106,239	84,527
Notes and accounts receivable - trade	55,840	54,995
Electronically recorded monetary claims - operating	3,723	4,821
Merchandise and finished goods	4,735	5,975
Work in process	62,863	80,541
Raw materials and supplies	6,985	8,977
Other	12,036	15,670
Allowance for doubtful accounts	(333)	(405)
Total current assets	252,091	255,103
Non-current assets
Property, plant and equipment
Buildings and structures, net	22,004	21,673
Machinery, equipment and vehicles, net	10,635	10,563
Other, net	11,869	12,154
Total property, plant and equipment	44,509	44,391
Intangible assets
Goodwill	407	284
Other	1,543	1,308
Total intangible assets	1,951	1,592
Investments and other assets
Investment securities	19,602	19,430
Other	21,894	20,990
Allowance for doubtful accounts	(319)	(272)
Total investments and other assets	41,177	40,149
Total non-current assets	87,638	86,133
Total assets	339,729	341,237
Liabilities
Current liabilities
Notes and accounts payable - trade	31,500	33,817
Electronically recorded obligations - operating	24,407	33,967
Short-term borrowings	10,412	10,708
Current portion of long-term borrowings	15,939	2,210
Income taxes payable	3,136	589
Contract liabilities	31,083	39,290
Provision for loss on wind power generator business	734	512
Provision for business restructure	1,617	1,617
Other provisions	1,290	1,032
Other	14,291	13,625
Total current liabilities	134,413	137,372
Non-current liabilities
Long-term borrowings	31,142	29,714
Provisions	41	43
Retirement benefit liability	12,341	12,446
Asset retirement obligations	1,377	1,395
Other	9,330	8,744
Total non-current liabilities	54,232	52,344
Total liabilities	188,646	189,716

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		(Millions of yen)
	As of March 31, 2022	As of December 31, 2022
Net assets
Shareholders' equity
Share capital	19,778	19,799
Capital surplus	5,510	5,531
Retained earnings	123,790	122,438
Treasury shares	(2,314)	(2,315)
Total shareholders' equity	146,765	145,453
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	2,217	2,336
Deferred gains or losses on hedges	(453)	(228)
Foreign currency translation adjustment	250	1,757
Remeasurements of defined benefit plans	661	540
Total accumulated other comprehensive income	2,674	4,406
Non-controlling interests	1,643	1,659
Total net assets	151,083	151,520
Total liabilities and net assets	339,729	341,237

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

		(Millions of yen)
	Nine months ended	Nine months ended
	December 31, 2021	December 31, 2022
Net sales	147,041	162,196
Cost of sales	113,707	130,771
Gross profit	33,334	31,425
Selling, general and administrative expenses	23,203	25,383
Operating profit	10,130	6,041
Non-operating income
Interest income	25	25
Dividend income	700	624
Foreign exchange gains	99	151
Gain on non-current assets rent	380	426
Share of profit of entities accounted for using equity method	10	-
Miscellaneous income	325	476
Total non-operating income	1,543	1,704
Non-operating expenses
Interest expenses	208	158
Share of loss of entities accounted for using equity method	-	26
Miscellaneous losses	134	116
Total non-operating expenses	342	301
Ordinary profit	11,331	7,444
Extraordinary income
Gain on sale of non-current assets	125	4
Gain on sale of investment securities	2,209	38
Total extraordinary income	2,335	43
Extraordinary losses
Loss on sale of non-current assets	1	-
Loss on retirement of non-current assets	143	194
Loss on sale of investment securities	94	-
Loss on valuation of investment securities	-	343
Loss on inappropriate conduct in quality inspections	-	745
Total extraordinary losses	239	1,282
Profit before income taxes	13,427	6,205
Income taxes - current	3,463	2,226
Income taxes - deferred	795	569
Total income taxes	4,259	2,795
Profit	9,168	3,409
Profit attributable to non-controlling interests	121	89
Profit attributable to owners of parent	9,047	3,319

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