Consolidated Financial Results for the Third Quarter of Fiscal Year 2016 (April 1, 2016 to December 31, 2016) January 27, 2017 Company name : Godo Steel, Ltd. Stock exchange listing : Tokyo Stock Exchange Code number : 5410 URL : http://www.godo-steel.co.jp/ Representative : Takayoshi Meiga, Chairman and CEO Contact : Hiroshi Uchida, Executive Officer, General Manager of Corporate Planning Department and General Manager of Accounting Department Phone : +81-6-6343-7600 Scheduled date of filing quarterly securities report : February 10, 2017 Scheduled date of commencing dividend payments : - Availability of supplementary briefing material on quarterly financial results : No Schedule of quarterly financial results briefing session : No (Amounts of less than one million yen are rounded down.) 1. Consolidated Financial Results for the Third Quarter of Fiscal Year 2016 (April 1, 2016 to December 31, 2016) (1) Consolidated Operating Results (Cumulative) (% indicates changes from the previous corresponding period.) Net sales Operating income Ordinary income Profit attributable to owners of parent Million yen % Million yen % Million yen % Million yen % Q3 FY 2016 72,225 (6.9) 2,058 (36.0) 2,498 (37.4) 1,840 (48.9) Q3 FY 2015 77,577 (20.3) 3,214 35.0 3,992 32.4 3,604 70.0 (Note) Comprehensive income: Q3 FY 2016: 4,404 million [11.2%] Q3 FY 2015: 3,959 million [29.9%] Basic earnings per share Diluted earnings per share Yen Yen Q3 FY 2016 122.14 Q3 FY 2015 230.53 * The Company has conducted a share consolidation at the ratio of 10 shares to 1 share effective October 1, 2016. Accordingly, the basic earnings per share have been calculated on the assumption that the said share consolidation was conducted at the beginning of FY 2016. (2) Consolidated Financial Position Total assets Net assets Equity ratio Million yen Million yen % Q3 FY 2016 163,055 85,339 52.0 FY 2015 153,988 83,763 54.0 (Reference) Equity: Q3 FY 2016: 84,759 million FY 2015: 83,215 million
2. Dividends 1st quarter-end 2nd quarter-end Annual dividends 3rd quarter-end Year-end Yen Yen Yen Yen Yen FY 2015 3.50 5.00 8.50 FY 2016 2.00 FY 2016 (Forecast) 20.00 (Note) Revision to the forecast for dividends announced most recently: No *The Company has conducted a share consolidation at the ratio of 10 shares to 1 share effective October 1, 2016. Accordingly, the total annual dividend for FY 2016 (Forecast) is presented as. (If the 2nd quarter-end dividend is converted taking the share consolidation into consideration, the total annual dividend for FY 2016 (Forecast) would be 40 per share.) 3. Consolidated Financial Results Forecast for the FY 2016 (April 1, 2016 to March 31, 2017) (% indicates changes from the previous corresponding period.) Net sales Operating Ordinary Profit attributable to Basic earnings income income owners of parent per share Million yen % Million yen % Million yen % Million yen % Yen FY 2016 99,000 (1.0) 2,100 (51.7) 2,500 (53.2) 1,900 (66.6) 126.93 (Note) Revision to the financial results forecast announced most recently: Yes * The Company has conducted a share consolidation at the ratio of 10 shares to 1 share effective October 1, 2016. Accordingly, the basic earnings per share have been calculated on the assumption that the said share consolidation was conducted at the beginning of FY 2016. Notes: (1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes in scope of consolidation): No (2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: No (3) Changes in accounting policies, changes in accounting estimates and retrospective restatement 1) Changes in accounting policies due to the revision of accounting standards: Yes 2) Changes in accounting policies other than 1) above: No 3) Changes in accounting estimates: No 4) Retrospective restatement: No (4) Total number of issued shares (common shares) 1) Total number of issued shares at the end of the period (including treasury shares): Q3 FY 2016: 17,145,211 shares FY 2015: 17,145,211 shares 2) Total number of treasury shares at the end of the period: Q3 FY 2016: 2,512,696 shares FY 2015: 1,520,003 shares 3) Average number of shares during the period (cumulative): Q3 FY 2016: 15,069,511 shares Q3 FY 2015: 15,636,169 shares Total
* The Company has conducted a share consolidation at the ratio of 10 shares to 1 share effective October 1, 2016. Accordingly, the total number of issued shares at the end of the period, the total number of treasury shares at the end of the period, and the average number of shares during the period have been calculated on the assumption that the said share consolidation was conducted at the beginning of FY 2015. * Presentation regarding the implementation status of the quarterly review procedures These quarterly financial results are outside the scope of review procedures under the Financial Instruments and Exchange Act. At the time of disclosure of these quarterly financial results, review procedures for the quarterly financial statements under the Financial Instruments and Exchange Act have not been completed. * Explanation of the proper use of financial results forecast and other notes (Explanation of the proper use of future forecast information) The future-related statements set forth in this document contain forecasts based on assumptions, prospects, as well as plans for future events as of the date of publication of this document. Actual results may differ significantly from these forecasts due to a wide range of factors. (Dividends forecast after the consolidation of shares) Following the approval of the share consolidation at the 110th annual shareholders meeting held on June 28, 2016, the Company has conducted a share consolidation at the ratio of 10 shares to 1 share effective October 1, 2016. Accordingly, the forecast for dividends for FY 2016 is as follows. Dividends forecast for FY 2016: 2nd quarter-end: 2.00* per share Year-end (Forecast): 20.00 per share * The 2nd quarter-end dividend was paid based on the number of shares before the share consolidation. If the 2nd quarter-end dividend is converted taking the share consolidation into consideration, the 2nd quarter-end dividend would be 20 per share and the total annual dividend including the year-end dividend for FY 2016 (Forecast) would be 40 per share.
Quarterly Consolidated Financial Statements (1) Quarterly Consolidated Balance Sheets FY 2015 (As of March 31, 2016) (Million yen) Q3 FY 2016 (As of December 31, 2016) Assets Current assets Cash and deposits 9,571 4,696 Notes and accounts receivable - trade 27,654 37,533 Inventories 17,759 18,766 Other 1,362 956 Total current assets 56,348 61,953 Non-current assets Property, plant and equipment Buildings and structures, net 11,319 11,175 Machinery, equipment and vehicles, net 14,827 15,167 Land 50,825 50,809 Other, net 670 748 Total property, plant and equipment 77,642 77,901 Intangible assets 383 379 Investments and other assets Investment securities 16,566 19,789 Other 3,113 3,098 Allowance for doubtful accounts (66) 66) Total investments and other assets 19,613 22,821 Total non-current assets 97,639 101,102 Total assets 153,988 163,055 Liabilities Current liabilities Notes and accounts payable - trade 11,689 17,703 Short-term loans payable 18,018 20,440 Income taxes payable 420 201 Provision for bonuses 1,422 619 Provision for environmental measures - 83 Other 6,626 6,538 Total current liabilities 38,177 45,585 Non-current liabilities Long-term loans payable 18,087 17,742 Provision for directors retirement benefits 126 114 Provision for environmental measures 499 374 Net defined benefit liability 4,410 4,151 Other 8,921 9,746 Total non-current liabilities 32,046 32,129 Total liabilities 70,224 77,715 1
FY 2015 (As of March 31, 2016) Q3 FY 2016 (As of December 31, 2016) Net assets Shareholders equity Capital stock 34,896 34,896 Capital surplus 13,005 13,005 Retained earnings 34,599 35,283 Treasury shares (2,962) (4,706) Total shareholders equity 79,538 78,478 Accumulated other comprehensive income Valuation difference on available-for-sale securities 132 2,591 Deferred gains or losses on hedges (0) 0 Revaluation reserve for land 3,729 3,807 Remeasurements of defined benefit plans (184) (118) Total accumulated other comprehensive income 3,676 6,280 Non-controlling interests 548 580 Total net assets 83,763 85,339 Total liabilities and net assets 153,988 163,055 2
(2) Quarterly Consolidated Statements of Income Third Quarter Q3 FY 2015 (From April 1, 2015 to December 31, 2015) (Million yen) Q3 FY 2016 (From April 1, 2016 to December 31, 2016) Net sales 77,577 72,225 Cost of sales 67,079 62,219 Gross profit 10,497 10,005 Selling, general and administrative expenses 7,283 7,946 Operating income 3,214 2,058 Non-operating income Interest income 1 1 Dividend income 323 317 Rent income 214 235 Share of profit of entities accounted for using equity method 500 127 Other 55 62 Total non-operating income 1,095 744 Non-operating expenses Interest expenses 218 189 Other 98 113 Total non-operating expenses 317 303 Ordinary income 3,992 2,498 Extraordinary income Gain on sales of non-current assets - 27 Gain on sales of investment securities 7 14 Total extraordinary income 7 41 Extraordinary losses Loss on retirement of non-current assets 38 84 Employee s condolence money - 90 Total extraordinary losses 38 174 Profit before income taxes 3,961 2,366 Income taxes 286 487 Profit 3,674 1,878 Profit attributable to non-controlling interests 69 37 Profit attributable to owners of parent 3,604 1,840 3