Domestic steel demand mainly in the construction, automotive and manufacturing industries remained stable during the first half of FY2018, with increases in capital expenditures noted. However, crude steel production ended up at about the same level it reached during the same period of the previous year due to heavy rains in western Japan, a major typhoon in the Kansai region, an earthquake in Hokkaido and other natural disasters affected production at some steel manufacturers.

Meanwhile, demand in overseas markets rose compared to the same period of the previous year as the U.S. economy remained robust, the economic picture also gradually brightened in Europe and emerging Asian and other nations, and China’s economy remained steady.

Thanks to the positive impact of the business environment as described above, the main consolidated profit and loss statement items for the first half of FY2018—under IFRS, unaudited—we outperformed the same period of the previous year.

Consolidated total assets at the end of the first half of FY2018 increased by ¥41 billion compared to the end of the previous consolidated accounting period, to ¥1.1291 trillion—a gain attributable to increases in inventories, other current assets and other factors—while consolidated interest-bearing debt rose by ¥34.8 billion, to ¥370.6 billion.

Total net assets excluding noncontrolling interests rose by ¥2.8 billion, to ¥369.8 billion compared to the end of the previous fiscal year, due to increases in net unrealized gains on securities, foreign currency adjustments and other factors.