Financial Results for the First Quarter ended June 30, 2015

(Consolidated financial results have been prepared in accordance with accounting principles generally accepted in Japan)

August 7, 2015
Company name:

HANWA Co., Ltd. Listed stock exchange: Tokyo

Stock exchange code: Representative:
8078
Hironari Furukawa President
(URL http://www.hanwa.co.jp)
Enquiries:
Atsuhiro Moriguchi Director, Senior Managing Executive Officer
TEL 81 - 3 - 3544 - 2000
The date of issue of audited financial statements: August 14, 2015

1.Consolidated financial results for the first quarter ended June 30, 2015

(Rounded down to millions of yen)

(1) Consolidated operating results (% of change from the same period of previous year)


Note: Comprehensive income For the first quarter ended June 30, 2015

For the first quarter ended June 30, 2014

Net income per share

Net income

per share(diluted)

For the first quarter

ended June 30, 2015 ended June 30, 2014

(yen)

14.23

9.79

(yen)

(2) Consolidated financial position

3,589
3,045
million yen million yen
17.9% (30.8%)

Total assets

Net assets

Shareholders'

equity ratio

Shareholders' equity

per share

June 30, 2015

March 31, 2015

(Millions of yen)

643,451

651,456

(Millions of yen)

144,844

142,749

(%)

22.3

21.7

(yen)

692.57

682.46

Note: Shareholders' equity As of June 30, 2015
As of March 31, 2015
143,507 million yen
141,415 million yen

2.Cash dividends

Cash dividends per share

(effective date)

First quarter

Second quarter

Third quarter

Year-end

Annual

Year ended March 31, 2015

(yen)

(yen)

7.50

(yen)

(yen)

7.50

(yen)

15.00

Year ending March 31, 2016

(estimated)

Year ending March 31, 2016

(estimated)

8.00

8.00

16.00

3.Forecast of consolidated financial results for fiscal year ending March 31, 2016 (% of change from previous year)

* The above forecasts reflect assumptions and prospects based on the information currently available.They are subject to a number of risks and uncertainties that could cause actual results to differ materially from this information.

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HANWA co., ltd.

Financial Results for the First Quarter ended June 30, 2015

《Consolidated Balance Sheets》 (Rounded down to millions of yen)

Assets

Current assets;
Cash and deposits
Trade notes and accounts receivable

Millions of yen

March 31, 2015 June 30, 2015 Increase(Decrease)
24,542 25,487 945
321,642 309,849 (11,793)
Securities 2,610 2,655 45
Inventories
Others

Allowance for doubtful receivables
Total current assets
133,055 125,260 (7,795)
29,442 38,740 9,298 (915) (345) 570

510,377 501,647 (8,730)
Fixed assets;
Property and equipment;
Land 31,676 32,737 1,061

Others 29,270 29,982 712

Total property and equipment 60,946 62,719 1,773
Intangible assets 2,019 2,202 183
Investments and other assets;

Investment securities 58,293 57,608 (685) Others 20,114 19,570 (544) Allowance for doubtful receivables (295) (296) (1) Total investments and other assets 78,112 76,881 (1,231)

Total fixed assets 141,078 141,804 726

Total assets 651,456 643,451 (8,005)

Liabilities;

Current liabilities;
Trade notes and accounts payable 180,155 171,236 (8,919) Short-term loans payable 82,155 83,823 1,668
Commercial paper 27,000 20,000 (7,000)

Current portion of bonds payable 10,000 57 (9,943) Income taxes payable 1,231 491 (740) Accrued bonuses 2,051 1,176 (875) Others 39,602 48,530 8,928

Total current liabilities 342,196 325,316 (16,880)
Long-term liabilities;
Bonds payable 30,000 30,118 118
Long-term loans payable 122,352 128,472 6,120
Retirement benefits liabilities 412 461 49

Others 13,745 14,237 492

Total long-term liabilities 166,510 173,290 6,780

Total liabilities 508,706 498,606 (10,100)

Net assets;

Shareholders' equity;
Common stock 45,651 45,651
Capital surplus 4 4
Retained earnings 82,110 83,586 1,476

Treasury stock (1,445) (1,447) (2) Total shareholders' equity 126,320 127,794 1,474
Accumulated other comprehensive income
Net unrealized holding gains on securities 11,621 12,605 984
Deferred hedge profit and loss 1,526 629 (897) Land revaluation difference 3,250 3,250
Foreign currency translation adjustments 2,356 2,723 367

Remeasurements of defined benefit plans (3,660) (3,495) 165

Total accumulated other comprehensive incom 15,094 15,713 619

Minority interests 1,334 1,336 2

Total net assets 142,749 144,844 2,095

Total liabilities and net assets 651,456 643,451 (8,005)

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HANWA co., ltd.

Financial Results for the First Quarter ended June 30, 2015

《Consolidated Statements of Income and Comprehensive Income》 (Rounded down to millions of yen)

First quarter ended
June 30, 2014

Millions of yen First quarter ended

June 30, 2015
Increase(Decrease)

Net sales 423,335 398,045 (25,290) Cost of sales 410,114 383,811 (26,303) Gross profit 13,220 14,233 1,013
Selling, general and administrative expenses

9,184 9,474 290

Operating income 4,036 4,759 723
Other income;
Interest income 223 205 (18) Dividend income 317 419 102
Reversal of allowance for doubtful account 612 612

Others 253 268 15

Total other income 795 1,505 710
Other expenses;
Interest expenses 719 696 (23) Loss on investment in affiliates 1,245 1,245
Foreign exchange loss 33 124 91

Others 299 303 4

Total other expenses 1,052 2,370 1,318

Ordinary income 3,779 3,894 115
Extraordinary income

Gain on sale of property and equipment 350 350

Total extraordinary income 350 350
Extraordinary loss;

Loss on devaluation of investments securities 150 150

Total extraordinary loss 150 150

Income before income taxes and minority interest 3,779 4,094 315

Income taxes 1,741 1,155 (586) Net income 2,037 2,939 902
Net income attributable to
Net income attributable to owners of the Company 2,028 2,948 920
Net income(loss) attributable to minority interests 9 (9) (18)
Other Comprehensive Income

Comprehensive Income 3,045 3,589 544

Comprehensive income attributable to

Comprehensive income attributable to owners of the paren

3,082

3,566

484

Comprehensive income attributable to minority interests

(37)

22

59

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HANWA co., ltd.

Financial Results for the First Quarter ended June 30, 2015

《Segment information》

Business segment information
The Companies' operations are classified into five business segments as follows:
Steel: Steel bars and shapes, steel plates and sheets, special steels, wire products, steel pipes, and steelmaking raw materials
Metals and alloys: Nickel, chromium, stainless scrap and solar cell-related materials and products
Non-ferrous metals: Copper, aluminium, lead, zinc, tin, antimony and other metals
Foods: Frozen seafoods and meat products
Petroleum and chemicals : Petroleum products, chemical products, and cement
Segment information by business category for the first quarter ended June 30, 2014 and 2015, is as follows:

(Rounded down to millions of yen)

First quarter ended June 30, 2014 Millions of yen

Reportable segment

Other

Total

Adjustment

Consoli- dated

Steel

Metals

& alloys

Non-ferrous

metals

Foods

Petroleum

& chemicals

Sub-

total

Other

Total

Adjustment

Consoli- dated

Net sales

Customers

Inter-segment

199,930

5,330

29,958

1,703

18,206

330

21,358

216

118,159

1,580

387,613

9,161

35,722

18,565

423,335

27,727

(27,727)

423,335

Total

205,260

31,661

18,537

21,575

119,739

396,774

54,288

451,062

(27,727)

423,335

Segment income(loss)

3,484

815

176

511

636

5,624

(218)

5,405

(1,626)

3,779

First quarter ended June 30, 2015 Millions of yen

Reportable segment

Other

Total

Adjustment

Consoli- dated

Steel

Metals

& alloys

Non-ferrous

metals

Foods

Petroleum

& chemicals

Sub-

total

Other

Total

Adjustment

Consoli- dated

Net sales

Customers

Inter-segment

195,142

5,024

36,756

1,006

23,681

268

24,825

104

78,433

1,484

358,838

7,889

39,206

24,712

398,045

32,602

(32,602)

398,045

Total

200,166

37,763

23,950

24,930

79,917

366,728

63,918

430,647

(32,602)

398,045

Segment income(loss)

2,859

684

395

70

382

4,393

504

4,897

(1,002)

3,894

Notes:
1. "Other" comprises businesses that are not included in reportable segments, such as lumber section, machinery section and

overseas sales subsidiaries.

2. Adjustments for segment income include intersegment elimination and Group costs that have not been distributed to reportable segments. These group costs consist mainly of expenses of administrative departments.
3. Segment income or loss is adjusted between ordinary income on the consolidated statements of income and comprehensive income.

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