Sanyo Special Steel : Financial Report for The Year Ended March 31, 2022

Thousands of U.S.

Millions of yen

dollars (Note 3)

ASSETS

2021

2022

2022

Current Assets:

Cash and bank deposits (Notes 6 and 23)

¥

10,924

¥

14,483

$

118,316

Notes and account receivable - trade (Notes 6 and 10)

47,198

－

－

Notes and accounts receivable - trade, and contract assets (Notes 6 and 10)

－

69,019

563,839

Electronically recorded monetary claims (Note 6)

5,132

8,707

71,130

Less: Allowance for doubtful accounts

(260)

(356)

(2,912)

Inventories (Notes 8 and 10)

73,123

113,512

927,306

Income taxes receivable

226

18

146

Deposits paid in parent company (Notes 6 and 23)

14,415

7,924

64,736

Other

7,151

7,196

58,791

Total current assets

157,909

220,503

1,801,352

Property, Plant and Equipment:

Land (Note 10)

12,826

13,259

108,315

Buildings and structures (Note 10)

73,153

75,042

613,037

Machinery and equipment (Note 10)

273,285

286,723

2,342,320

Construction in progress

9,554

3,408

27,840

Other (Note 10)

13,963

14,953

122,151

382,781

393,385

3,213,663

Less: Accumulated depreciation

(268,956)

(281,410)

(2,298,910)

Total property, plant and equipment

113,825

111,975

914,753

Intangibles

Goodwill

34,176

33,284

271,906

Other

4,046

4,102

33,514

Total intangible

38,222

37,386

305,420

Investments and Other Assets:

Investments in securities (Notes 6, 7 and 9)

5,991

4,996

40,813

Long-term loans receivable

2

2

18

Deferred tax assets (Note 13)

639

2,055

16,783

Net defined benefit assets (Note 12)

1,836

300

2,452

Other

1,140

902

7,364

Less: Allowance for doubtful accounts

(203)

(208)

(1,695)

Total investments and other assets

9,405

8,047

65,735

Total assets

¥

319,361

¥

377,911

$

3,087,260

Thousands of U.S.

Millions of yen

dollars (Note 3)

LIABILITIES AND NET ASSETS

2021

2022

2022

Current Liabilities:

Short-term loans (Notes 6, 10 and 11)

¥

34,146

¥

34,367

$

280,757

Current portion of long-term loans (Notes 6, 10 and 11)

13,727

3,306

27,010

Commercial papers (Note 6)

－

12,001

98,042

Notes and accounts payable - trade

27,846

49,426

403,771

Accounts payable - other

12,079

10,262

83,837

Accrued income taxes

650

5,475

44,730

Accrued expenses

7,984

12,685

103,624

Provision for environmental measures

160

4

32

Other (Note 11)

3,048

2,711

22,141

Total current liabilities

99,640

130,237

1,063,944

Long-term Liabilities:

Bonds payable (Notes 6 and 11)

10,000

10,000

81,693

Long-term loans (Notes 6, 10 and 11)

12,429

19,324

157,863

Accrued directors' and corporate auditors' retirement benefits

66

68

556

Deferred tax liabilities (Note 13)

2,729

4,743

38,749

Provision for loss on guarantees

3

1

11

Provision for environmental measures

310

207

1,684

Net defined benefit liabilities (Note 12)

12,852

12,165

99,381

Other (Note 11)

1,444

2,321

18,957

Total long-term liabilities

39,833

48,829

398,894

Total liabilities

139,473

179,066

1,462,838

Contingent Liabilities (Note 26)

Net Assets (Note 14)

Shareholders' Equity:

Common stock:

Authorized 94,878,400 shares in 2021 and 2022

Issued 54,507,307 shares in 2021 and 2022

¥

53,800

¥

53,800

$

439,508

Capital surplus

51,486

51,486

420,606

Retained earnings

72,924

85,733

700,375

Less: Treasury stock, at cost (16,774 shares in 2021 and 19,566 shares in 2022)

(23)

(28)

(231)

Total shareholders' equity

178,187

190,991

1,560,258

Accumulated Other Comprehensive Income:

Valuation difference on available-for-sale securities

1,661

1,383

11,297

Deferred gains on hedges

885

2,134

17,438

Foreign currency translation adjustments

(650)

4,120

33,657

Remeasurements of defined benefit plans

(1,690)

(1,634)

(13,349)

Total accumulated other comprehensive income

206

6,003

49,043

Non-controlling Interests

1,495

1,851

15,121

Total net assets

179,888

198,845

1,624,422

Total liabilities and net assets

¥

319,361

¥

377,911

$

3,087,260

2

Thousands of U.S.

Millions of yen

dollars (Note 3)

2021

2022

2022

Net Sales (Note 29)

¥

210,722

¥

363,278

$

2,967,719

Cost of Sales (Notes 8 and 15)

187,949

303,394

2,478,514

Gross profit

22,773

59,884

489,205

Selling, General and Administrative Expenses (Notes 15 and 17)

28,266

38,467

314,245

Operating income (loss)

(5,493)

21,417

174,960

Other Income:

Interest and dividends

196

263

2,147

Rent income

539

442

3,609

Income from deposit transfer following extinctive prescription

99

－

－

Exchange gains

539

164

1,340

Other

175

243

1,989

1,548

1,112

9,085

Other Expenses:

Interest

(641)

(615)

(5,025)

Other

(177)

(250)

(2,041)

(818)

(865)

(7,066)

Ordinary income (loss)

(4,763)

21,664

176,979

Extraordinary Gains and Losses:

Impairment loss (Note 21)

(3,929)

－

－

Loss on sale and disposition of property, plant and equipment (Note 19)

(625)

(193)

(1,576)

Loss on liquidation of subsidiaries (Note 20)

－

(414)

(3,388)

Extra retirement payments

(425)

－

－

Loss on evaluation of investments in securities

(30)

(219)

(1,791)

Gain on sale of property, plant and equipment (Note 18)

－

43

355

Gain on sales of land

169

－

－

Gain on sale of investment in securities

84

92

755

(4,756)

(691)

(5,645)

Income (loss) before income taxes

(9,519)

20,973

171,334

Income Taxes (Note 13):

Current

674

5,252

42,905

Deferred

(1,231)

224

1,827

(557)

5,476

44,732

Net income (loss)

(8,962)

15,497

126,602

Net Income (Loss) Attributable to Non-controlling Interests

(2,092)

230

1,880

Net Income (Loss) Attributable to Owners of the Parent

¥

(6,870)

¥

15,267

$

124,722

Yen

U.S. dollars (Note 3)

2021

2022

2022

Per Share:

Net income (loss) (Note 22)

¥

(126.07)

¥

280.19

$

2.29

Cash dividends

¥

－

¥

90.00

$

0.74

Net assets

¥

3,273.84

¥

3,615.39

$

29.54