Japan Steel Works : Summary of Consolidated Financial Results for the Three Months Ended June 30, 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 Three Months Ended June 30, 2022 (Based on Japanese GAAP)

				August 8, 2022
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:	August 10, 2022
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 three months ended June 30, 2022 (from April 1, 2022 to June 30, 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		%
Three months ended June 30, 2022	45,029		(2.1)		648		(82.5)		1,546		(62.3)		518		(82.9)
Three months ended June 30, 2021	46,000		10.6		3,704		269.1		4,105		245.8		3,035		236.3
	Earnings per share		Diluted earnings per share
			Yen						Yen
Three months ended June 30, 2022			7.05						-
Three months ended June 30, 2021			41.26						-
(2) Consolidated financial position
	Total assets				Net assets		Equity ratio
	Millions of yen			Millions of yen				%
As of June 30, 2022	330,578		149,371				44.7
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	Total
	Yen				Yen			Yen				Yen			Yen
Year ended March 31, 2022		-			22.50				-			34.50			57.00
Year ending March 31, 2023		-
Year ending March 31, 2023 (Forecast)						-			-				-			-

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 attributable to	Earnings per share
		owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen		%	Yen
Full year	266,000	24.4	21,500	39.1	22,000	31.2	-		-	-

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4. Notes

1. Changes in significant subsidiaries during the three months ended June 30, 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 June 30, 2022	74,373,265	shares	As of March 31, 2022	74,373,265	shares
Number of treasury shares at the end of the period
	As of June 30, 2022	804,171	shares	As of March 31, 2022	804,074	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended June 30, 2022	73,569,120	shares	Three months ended June 30, 2021	73,555,503	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2022	As of June 30, 2022
Assets
Current assets
Cash and deposits	106,239	91,777
Notes and accounts receivable - trade	55,840	45,115
Electronically recorded monetary claims - operating	3,723	4,814
Merchandise and finished goods	4,735	7,159
Work in process	62,863	69,581
Raw materials and supplies	6,985	8,784
Other	12,036	15,208
Allowance for doubtful accounts	(333)	(352)
Total current assets	252,091	242,089
Non-current assets
Property, plant and equipment
Buildings and structures, net	22,004	21,933
Machinery, equipment and vehicles, net	10,635	10,666
Other, net	11,869	11,882
Total property, plant and equipment	44,509	44,483
Intangible assets
Goodwill	407	366
Other	1,543	1,467
Total intangible assets	1,951	1,834
Investments and other assets
Investment securities	19,602	20,124
Other	21,894	22,362
Allowance for doubtful accounts	(319)	(317)
Total investments and other assets	41,177	42,170
Total non-current assets	87,638	88,488
Total assets		339,729	330,578

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			(Millions of yen)
		As of March 31, 2022	As of June 30, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade	31,500	31,522
Electronically recorded obligations - operating	24,407	28,172
Short-term borrowings	10,412	11,304
Current portion of long-term borrowings	15,939	2,173
Income taxes payable	3,136	898
Contract liabilities	31,083	33,906
Provision for loss wind power generator business	734	733
Provision for business restructure	1,617	1,617
Other provisions	1,290	885
Other	14,291	17,167
Total current liabilities	134,413	128,381
Non-current liabilities
Long-term borrowings	31,142	29,871
Provisions	41	42
Retirement benefit liability	12,341	12,482
Asset retirement obligations	1,377	1,383
Other	9,330	9,045
Total non-current liabilities	54,232	52,825
Total liabilities	188,646	181,207
Net assets
Shareholders' equity
Share capital	19,778	19,778
Capital surplus	5,510	5,510
Retained earnings	123,790	121,771
Treasury shares	(2,314)	(2,315)
Total shareholders' equity	146,765	144,745
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	2,217	2,567
Deferred gains or losses on hedges	(453)	(1,004)
Foreign currency translation adjustment	250	853
Remeasurements of defined benefit plans	661	621
Total accumulated other comprehensive income	2,674	3,038
Non-controlling interests	1,643	1,586
Total net assets	151,083	149,371
Total liabilities and net assets		339,729	330,578

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

Consolidated statements of income (cumulative)

			(Millions of yen)
		Three months ended	Three months ended
		June 30, 2021	June 30, 2022
Net sales	46,000	45,029
Cost of sales	35,011	36,379
Gross profit	10,989	8,649
Selling, general and administrative expenses	7,284	8,000
Operating profit	3,704	648
Non-operating income
Interest income	4	6
Dividend income	271	324
Foreign exchange gains	4	212
Gain on non-current assets rent	127	145
Miscellaneous income	111	312
Total non-operating income	518	1,001
Non-operating expenses
Interest expenses	68	52
Share of loss of entities accounted for using equity method	2	8
Miscellaneous losses	46	43
Total non-operating expenses	117	104
Ordinary profit	4,105	1,546
Extraordinary income
Gain on sale of non-current assets	120	1
Total extraordinary income	120	1
Extraordinary losses
Loss on sale of non-current assets	-	0
Loss on retirement of non-current assets	75	95
Loss on inappropriate conduct in quality inspections	-	177
Total extraordinary losses	75	273
Profit before income taxes	4,150	1,273
Income taxes - current	1,837	1,196
Income taxes - deferred	(754)	(471)
Total income taxes	1,082	724
Profit	3,068	549
Profit attributable to non-controlling interests	32	30
Profit attributable to owners of parent		3,035	518

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