Japan Steel Works : Summary of Consolidated Financial Results for the Three Months Ended June 30, 2021

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, 2021 (Based on Japanese GAAP)

				August 10, 2021
Company name:	The Japan Steel Works, Ltd.
Stock exchange listing:	Tokyo
Stock code:	5631	URL https://www.jsw.co.jp/
Representative:	Representative Director & President	Naotaka Miyauchi
Inquiries:	General Manager, General Affairs	Atsuya Hodota	TEL [phone]
Department
Scheduled date to file Quarterly Securities Report:	August 12, 2021
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, 2021 (from April 1, 2021 to June 30, 2021)
(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, 2021	46,000		10.6	3,704		269.1	4,105		245.8	3,035	236.3
Three months ended June 30, 2020	41,598		(22.9)	1,003		(85.6)	1,187		(84.6)	902	(85.6)
	Earnings per share		Diluted earnings per share
			Yen			Yen
Three months ended June 30, 2021			41.26				-
Three months ended June 30, 2020			12.27				-
(2) Consolidated financial position
	Total assets			Net assets		Equity ratio
	Millions of yen		Millions of yen				%
As of June 30, 2021	320,852	143,510				44.3
As of March 31, 2021	316,249	141,985				44.4

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, 2021	-	17.50	-	17.50	35.00
Year ending March 31, 2022	-
Year ending March 31, 2022 (Forecast)		22.50	-	22.50	45.00

3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)

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	226,000	14.1	16,000	56.5	16,000	49.2	11,000	59.6	149.60

1

4. Notes

1. Changes in significant subsidiaries during the three months ended June 30, 2021 (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:	Yes
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, 2021	74,359,182	shares	As of March 31, 2021	74,359,182	shares
Number of treasury shares at the end of the period
	As of June 30, 2021	803,684	shares	As of March 31, 2021	803,655	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended June 30, 2021	73,555,503	shares	Three months ended June 30, 2020	73,529,003	shares

2

Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2021	As of June 30, 2021
Assets
Current assets
Cash and deposits	89,441	88,761
Notes and accounts receivable - trade	56,806	55,753
Merchandise and finished goods	2,550	2,693
Work in process	57,019	61,241
Raw materials and supplies	6,126	6,462
Other	10,889	12,577
Allowance for doubtful accounts		(190)	(211)
Total current assets	222,643	227,278
Non-current assets
Property, plant and equipment
Buildings and structures, net	23,045	22,806
Machinery, equipment and vehicles, net	9,167	9,054
Other, net		13,989	14,202
Total property, plant and equipment	46,201	46,064
Intangible assets
Goodwill	573	532
Other		1,803	1,676
Total intangible assets	2,376	2,208
Investments and other assets
Investment securities	24,950	24,256
Other	20,410	21,376
Allowance for doubtful accounts		(333)	(331)
Total investments and other assets		45,027	45,301
Total non-current assets		93,606	93,573
Total assets	316,249	320,852
Liabilities
Current liabilities
Notes and accounts payable - trade	50,524	49,846
Short-term borrowings	10,147	11,130
Current portion of long-term borrowings	1,950	16,964
Income taxes payable	2,484	1,484
Advances received	17,928	-
Contract liabilities		-	21,156
Provision for loss on wind power generator business	1,421	1,421
Provision for business restructure	2,482	2,438
Other provisions	701	1,020
Other		17,908	18,167
Total current liabilities	105,548	123,628
Non-current liabilities
Long-term borrowings	44,781	29,744
Provisions	46	54
Retirement benefit liability	12,404	12,527
Asset retirement obligations	1,352	1,358
Other		10,130	10,027
Total non-current liabilities		68,715	53,712
Total liabilities	174,263	177,341
	3

			(Millions of yen)
		As of March 31, 2021	As of June 30, 2021
Net assets
Shareholders' equity
Share capital	19,758	19,758
Capital surplus	5,490	5,490
Retained earnings	112,784	114,532
Treasury shares	(2,313)	(2,313)
Total shareholders' equity	135,719	137,467
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	4,962	4,478
Deferred gains or losses on hedges	(286)	(283)
Foreign currency translation adjustment	(458)	(88)
Remeasurements of defined benefit plans	461	421
Total accumulated other comprehensive income	4,679	4,528
Non-controlling interests	1,586	1,514
Total net assets	141,985	143,510
Total liabilities and net assets		316,249	320,852

4

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, 2020	June 30, 2021
Net sales	41,598	46,000
Cost of sales	31,535	35,011
Gross profit	10,062	10,989
Selling, general and administrative expenses	9,059	7,284
Operating profit	1,003	3,704
Non-operating income
Interest income	7	4
Dividend income	285	271
Gain on non-current assets rent	118	127
Miscellaneous income	135	115
Total non-operating income	547	518
Non-operating expenses
Interest expenses	62	68
Provision for warranties for completed construction	152	-
Share of loss of entities accounted for using equity method	6	2
Miscellaneous losses	141	46
Total non-operating expenses	363	117
Ordinary profit	1,187	4,105
Extraordinary income
Gain on sale of non-current assets	0	120
Gain on transfer from business divestitures	2,537	-
Total extraordinary income	2,538	120
Extraordinary losses
Loss on sale of non-current assets	1	-
Loss on retirement of non-current assets	97	75
Total extraordinary losses	99	75
Profit before income taxes	3,626	4,150
Income taxes - current	2,008	1,837
Income taxes - deferred	663	(754)
Total income taxes	2,671	1,082
Profit	955	3,068
Profit attributable to non-controlling interests	53	32
Profit attributable to owners of parent		902	3,035

5