中山製鋼所（5408） – Consolidated Financial Results for the Year Ended March 31, 2022 [Japanese GAAP]

Note:ThisdocumentisatranslationofapartoftheoriginalJapaneseversionandprovidedforreferencepurposesonly.IntheeventofanydiscrepancybetweentheJapaneseoriginalandthisEnglishtranslation,theJapaneseoriginalshallprevail.Consolidated Financial Resultsfor the Year Ended March 31, 2022[Japanese GAAP]May 10, 2022Company name: Nakayama Steel Works, Ltd.Stock exchange listing: TokyoCode number: 5408URL: https://www.nakayama-steel.co.jp/Representative: Kazuaki HakomoriContact: Mitsuaki SakaguchiPhone: 06-6555-3035Scheduled date of Annual General Meeting of Shareholders: June 28, 2022Scheduled date of commencing dividend payments: June 29, 2022Scheduled date of filing annual securities report: June 28, 2022Availability of supplementary briefing material on annual financial results: NoSchedule of annual financial results briefing session: Yes,President,Managing Executive Officer(Amounts of less than one million yen are rounded down)1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 01, 2021 to March 31, 2022)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)Net salesOperating profitOrdinary profitFiscal year endedMarch 31, 2022March 31, 2021(Note) Comprehensive income:Million yen166,701110,954% Million yen7,2502,35150.2-Fiscal year ended March 31, 2022:Fiscal year ended March 31, 2021:208.3-¥¥% Million yen6,6542,661150.0-4,953 million3,094 millionProfit attributable toowners of parent% Million yen4,8152,355%104.4-[[60.1%]-%]Basic earnings pershareDiluted earnings pershareRate of return onequityOrdinary profit tototal assets ratioOperating profit tonet sales ratioFiscal year endedMarch 31, 2022March 31, 2021(Reference) Equity in earnings (losses) of affiliated companies:Yen88.9643.52Yen–%5.62.8Fiscal year ended March 31, 2022:Fiscal year ended March 31, 2021:%5.02.2¥¥%4.32.1135 million126 million(2) Consolidated Financial PositionTotal assetsNet assetsCapital adequacy ratioNet assets per shareAs ofMarch 31, 2022March 31, 2021(Reference) Equity: As of March 31, 2022:As of March 31, 2021:Million yen143,618122,982Million yen88,93184,356¥¥88,931 million84,356 million%61.968.6Yen1,642.721,558.22(3) Consolidated Cash FlowsFiscal year endedMarch 31, 2022March 31, 2021Cash flows fromoperating activitiesCash flows frominvesting activitiesCash flows fromfinancing activitiesCash and cashequivalents at the endof periodMillion yen(8,756)4,127Million yen(2,308)(2,652)Million yen8,388(1,682)Million yen15,74518,308　2. DividendsFiscal year endedMarch 31, 2021March 31, 2022Fiscal year endingMarch 31, 2023(Forecast)Annual dividends1stquarter-endYen2ndquarter-endYen3rdquarter-endYen—3.004.006.00Year-endTotalYen3.00Yen6.0012.0016.0014.0020.00—TotaldividendsMillion yen376974Payoutratio(consolidated)Dividendsto netassets(consolidated)%0.41.0%13.818.029.3(Note) Breakdown of the year-end dividend for the fiscal year ended March 31, 2022 :Commemorative dividendSpecial dividend- yen- yen3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 01, 2022 to March 31, 2023)Net salesOperating profitMillion yen% Million yen(% indicates changes from the previous corresponding period.)Basic earnings perProfit attributableto owners of parentshare%Ordinary profit% Million yen% Million yenYen96,000200,00030.920.02,2006,500(5.2)2,000(10.3)6,000(3.4)(9.8)1,1003,700(13.4)(23.2)20.3268.35Six months endedSeptember 30, 2022Full year* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes inscope of consolidation): NoNewExclusion:–(Company name:(Company name:))(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement1) Changes in accounting policies due to the revision of accounting standards: Yes2) Changes in accounting policies other than 1) above: No3) Changes in accounting estimates: No4) Retrospective restatement: No(3) Total number of issued shares (common shares)1) Total number of issued shares at the end of the period (including treasury shares):March 31, 2022:March 31, 2021:March 31, 2022:March 31, 2021:63,079,256 shares63,079,256 shares8,942,656 shares8,942,447 shares2) Total number of treasury shares at the end of the period:3) Average number of shares during the period:Fiscal Year ended March 31, 2022:Fiscal Year ended March 31, 2021:54,136,692 shares54,136,999 shares　(Reference) Summary of Non-consolidated Financial Results1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 01, 2021 to March 31, 2022)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)Net salesOperating profitOrdinary profitNet incomeFiscal year endedMarch 31, 2022March 31, 2021Million yen125,09875,272% Million yen2,233(1,174)66.2-% Million yen2,646-(235)-% Million yen2,329-593-%292.8-Basic earnings per share Diluted earnings per shareFiscal year endedMarch 31, 2022March 31, 2021Yen37.099.44Yen–(2) Non-consolidated Financial PositionTotal assetsNet assetsCapital adequacy ratioNet assets per shareAs ofMarch 31, 2022March 31, 2021(Reference) Equity: As of March 31, 2022:As of March 31, 2021:Million yen112,85794,919Million yen62,54860,631¥¥62,548 million60,631 million%55.463.9Yen995.94965.42　Consolidated Financial StatementsConsolidated Balance SheetsAs of March 31,2021As of March 31,2022(Million yen)AssetsCurrent assetsCash and depositsNotes and accounts receivable – tradeElectronically recorded monetary claims -operatingMerchandise and finished goodsWork in processRaw materials and suppliesOtherAllowance for doubtful accountsTotal current assetsNon-current assetsProperty, plant and equipmentBuildings and structuresAccumulated depreciationBuildings and structures, netMachinery and equipmentAccumulated depreciationMachinery and equipment, netVehiclesAccumulated depreciationVehicles, netTools, furniture and fixturesAccumulated depreciationTools, furniture and fixtures, netLandLeased assetsAccumulated depreciationLeased assets, netConstruction in progressTotal property, plant and equipmentIntangible assetsOtherTotal intangible assetsInvestments and other assetsInvestment securitiesRetirement benefit assetDeferred tax assetsGuarantee depositsOtherAllowance for doubtful accountsTotal investments and other assetsTotal non-current assetsTotal assets　18,32828,7464,7549,9622,5478,1222,730(31)75,16031,076(24,379)6,69781,288(70,356)10,931883(767)1164,011(3,509)50223,128631(489)14225541,7732812812,5921,13441,873201(39)5,76747,822122,98215,76531,5387,38617,3383,28415,8151,654(94)92,68831,719(24,896)6,82388,445(75,453)12,992838(772)664,178(3,686)49123,033640(470)16952044,0972732732,7851,21582,352239(41)6,55950,929143,618LiabilitiesCurrent liabilitiesNotes and accounts payable – tradeElectronically recorded obligations – operatingShort-term borrowingsCurrent portion of bonds payableAccounts payable – otherAccrued expensesIncome taxes payableProvision for bonusesProvision for environmental measuresProvision for loss on disasterOtherTotal current liabilitiesNon-current liabilitiesBonds payableLong-term borrowingsDeferred tax liabilitiesDeferred tax liabilities for land revaluationProvision for environmental measuresProvision for decommissioning and removalProvision for loss on business of subsidiaries andassociatesRetirement benefit liabilityNegative goodwillOtherTotal non-current liabilitiesTotal liabilitiesNet assetsShareholders’ equityShare capitalCapital surplusRetained earningsTreasury sharesTotal shareholders’ equityAccumulated other comprehensive incomeValuation difference on available-for-salesecuritiesDeferred gains or losses on hedgesRevaluation reserve for landRemeasurements of defined benefit plansTotal accumulated other comprehensive incomeTotal net assetsTotal liabilities and net assetsAs of March 31,2021As of March 31,2022(Million yen)17,3918156,352421,6501,134325797341586129,421692883,2241,001442404812,56231,1279,20438,62620,0447,82653,850(775)80,94598102,522(92)3,41184,356122,98221,7501,3567,674422,0401,4441,5658539-63837,375278,2493,4721,001415404422,577-1,12117,31154,68620,0447,82658,364(775)85,4591,043(0)2,444(16)3,47188,931143,618　Consolidated Statements of Income and Comprehensive IncomeConsolidated Statements of IncomeFor the fiscal yearended March 31,2021For the fiscal yearended March 31,2022(Million yen)Selling, general and administrative expensesSelling expensesGeneral and administrative expensesTotal selling, general and administrative expensesNet salesCost of salesGross profitOperating profitNon-operating incomeInterest incomeDividend incomeAmortization of negative goodwillShare of profit of entities accounted for using equitymethodInsurance claim incomeRental income from real estateProfit of conserving electricityOtherTotal non-operating incomeNon-operating expensesInterest expensesRepair expensesCommission for syndicated loansLoss on securitization of receivablesRental expensesFactory accident related lossOtherTotal non-operating expensesOrdinary profitExtraordinary incomeGain on extinguishment of tie-in sharesReversal of provision for loss on business ofsubsidiaries and associatesGain on sale of non-current assetsReversal of provision for environmental measuresReversal of provision for loss on disasterGain on sales of scrapsSubsidy incomeTotal extraordinary incomeExtraordinary lossesLoss on retirement of non-current assetsImpairment lossesCancellation penaltyLoss on tax purpose reduction entry of non-currentassetsOtherTotal extraordinary lossesProfit before income taxesIncome taxes – currentIncome taxes – deferred　110,95497,10813,8465,5185,97611,4942,3514649185126986615010182687233314899150516205-6869958570594183-13870332,6614262,829555(81)166,701146,90319,7976,2046,34212,5477,250135546536567-48439113223276132147-220392927—–316181101421,0346,654112036,7671,776176Total income taxesProfitProfit attributable to non-controlling interestsProfit attributable to owners of parent4732,355-2,3551,9524,815-4,815　Consolidated Statements of Comprehensive IncomeProfit (loss)Other comprehensive incomeValuation difference on available-for-sale securitiesDeferred gains or losses on hedgesRemeasurements of defined benefit plans, net of taxShare of other comprehensive income of entitiesaccounted for using equity methodOther comprehensive incomeComprehensive incomeComprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterestsFor the fiscal yearended March 31,2021For the fiscal yearended March 31,2022(Million yen)2,355417320007383,0943,094-4,81562(0)75(0)1374,9534,953-　Consolidated Statements of Changes in Net AssetsFor the fiscal year ended March 31,2021Share capitalCapital surplusTreasury sharesShareholders’ equityRetainedearnings(Million yen)Totalshareholders’equity20,0447,82651,453(775)78,548Balance at beginningof periodChanges duringperiodDividends ofsurplusReversal ofrevaluation reservefor landProfit attributable toowners of parentPurchase of treasurysharesNet changes initems other thanshareholders’ equityTotal changesduring periodBalance at end ofperiodBalance at beginningof periodChanges duringperiodDividends ofsurplusReversal ofrevaluation reservefor landProfit attributable toowners of parentPurchase of treasurysharesNet changes initems other thanshareholders’ equityTotal changesduring periodBalance at end ofperiod(487)5282,355(487)5282,355(0)2,39680,945(0)(0)(775)-20,0447,8262,39653,850Accumulated other comprehensive incomeValuationdifference onavailable-for-salesecuritiesDeferred gains orlosses on hedgesRevaluationreserve for landRemeasurementsof definedbenefit plansTotalaccumulatedothercomprehensiveincomeTotal net assets5633,050(412)3,20181,750417417981(528)(528)2,522320320(92)2092093,411(487)5282,355(0)2092,60684,356–000　For the fiscal year ended March 31,2022Share capitalCapital surplusTreasury sharesShareholders’ equityRetainedearnings(Million yen)Totalshareholders’equity20,0447,82653,850(775)80,945Balance at beginningof periodChanges duringperiodDividends ofsurplusReversal ofrevaluation reservefor landProfit attributable toowners of parentPurchase of treasurysharesNet changes initems other thanshareholders’ equityTotal changesduring periodBalance at end ofperiodBalance at beginningof periodChanges duringperiodDividends ofsurplusReversal ofrevaluation reservefor landProfit attributable toowners of parentPurchase of treasurysharesNet changes initems other thanshareholders’ equityTotal changesduring periodBalance at end ofperiod(378)774,815(378)774,815(0)4,51485,459(0)(0)(775)-20,044-7,8264,51458,364Accumulated other comprehensive incomeValuationdifference onavailable-for-salesecuritiesDeferred gains orlosses on hedgesRevaluationreserve for landRemeasurementsof definedbenefit plansTotalaccumulatedothercomprehensiveincomeTotal net assets98102,522(92)3,41184,35661611,043(0)(0)(0)(77)(77)757560602,444(16)3,471(378)774,815(0)604,57488,931　Consolidated Statements of Cash FlowsFor the fiscal yearended March 31,2021For the fiscal yearended March 31,2022(Million yen)Cash flows from operating activitiesProfit before income taxesDepreciationImpairment lossesIncrease (decrease) in allowance for doubtful accountsIncrease (decrease) in provision for bonusesIncrease (decrease) in retirement benefit liabilityDecrease (increase) in retirement benefit assetIncrease (decrease) in provision for decommissioningand removalIncrease (decrease) in provision for environmentalmeasuresIncrease (decrease) in provision for loss on business ofsubsidiaries and associatesInterest and dividend incomeInterest expensesCommission for syndicate loanGain on reversal of provision for loss on disasterLoss (gain) on sales of scrapsSubsidy incomeLoss (gain) on extinguishment of tie-in sharesLoss on retirement of non-current assetsLoss on tax purpose reduction entry of non-currentassetsCancellation penaltyLoss (gain) on sale of property, plant and equipmentDecrease (increase) in trade receivablesDecrease (increase) in inventoriesIncrease (decrease) in trade payablesIncrease (decrease) in accrued consumption taxesOther, netSubtotalIncome taxes refundIncome taxes paidPayments associated with disaster lossGain on sales of scrapsCancellation penalty paidNet cash provided by (used in) operating activitiesCash flows from investing activitiesPurchase of property, plant and equipmentProceeds from sale of property, plant and equipmentSubsidies receivedInterest and dividends receivedLoan advances to subsidiaries and associatesOther, netNet cash provided by (used in) investing activitiesCash flows from financing activitiesNet increase (decrease) in short-term borrowingsProceeds from long-term borrowingsRepayments of long-term borrowingsRedemption of bonds　2,8292,175-(5)(10)86(85)(65)(114)(68)(96)873(95)(85)(70)-18370138(203)(3,071)1,3943,579(795)(867)4,91219(655)(96)85(138)4,127(3,345)85570128(200)(160)(2,652)-100(1,069)(42)6,7672,308106555119(75)-(51)(39)(119)113276(220)181——-(28)(5,424)(15,806)4,989(954)(427)(8,260)123(605)(13)(8,756)(2,534)117-157(3)(45)(2,308)5,0008,650(4,366)(42)Dividends paidInterest paidOther, netCommission for syndicate loan paidNet cash provided by (used in) financing activitiesNet increase (decrease) in cash and cash equivalentsCash and cash equivalents at beginning of periodIncrease in cash and cash equivalents resulting frommergerCash and cash equivalents at end of period(486)(87)(3)(92)(1,682)(206)18,514-18,308(379)(113)(274)(85)8,388(2,676)18,30811315,745