Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended March 31, 2023
(Based on Japanese GAAP)May 12, 2023
Company name:TOYO KANETSU K.K.
Stock exchange listing: Tokyo
Stock code:
6369
URL https://www.toyokanetsu.co.jp
Representative:
President and Representative Director
Takashi Owada
Senior Executive Officer
Inquiries:
Division ManagerTakeshi Yonehara
TEL 03-5857-3333
Corporate Division
Scheduled date of ordinary general meeting of shareholders:June 28, 2023
Scheduled date to file Securities Report:
June 28, 2023
Scheduled date to commence dividend payments:
June 29, 2023
Preparation of supplementary material on financial results:
Yes
Holding of financial results meeting:Yes(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended March 31, 2023
47,351(20.0)
2,497(11.1)
2,896(16.6)
2,378
1.9
Year ended March 31, 2022
59,177–2,808–
3,474–
2,334–(Note) From the beginning of the previous consolidated fiscal year the Company has applied “Accounting Standard for Revenue Recognition”(ASBJ Statement No. 29). The figures for fiscal year ended March 31, 2022 of the current fiscal year above include the effects of the said
standards. Accordingly, percentages of changes from the previous fiscal year are not indicated.
Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
–
6.4
4.5
5.3
–
6.4
5.6
4.7

Diluted earnings pershareYen
293.63285.43

Year ended March 31, 2023
Year ended March 31, 2022
(2) Consolidated financial position

Total assets
As of March 31, 2023
As of March 31, 2022

Net assets

Equity ratio

Millions of yen
64,00164,290Millions of yen
38,08736,477

Cash flows fromoperating activities
Millions of yen
1,105(1,097)

Cash flows frominvesting activities
Millions of yen
826
(830)

Net assets per share
%
59.5
56.7

Yen
4,708.95
4,460.55(3) Consolidated cash flows

Year ended March 31, 2023
Year ended March 31, 2022

Cash and cash equivalents
Cash flows fromfinancing activities
at end of period
Millions of yen
Millions of yen(3,719)
6,921
3,208
8,654

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2022
Year ended March 31, 2023
Year ending March 31, 2024(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%%

––

0.00
0.00

–
–

145.00147.00145.00147.00

1,197
1,197

50.8
50.1

3.3
3.2

–

0.00

–

150.00150.00150.5

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
54,000
14.0
3,300
32.2
3,500
20.8
2,400
0.9
296.76
4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:No
Changes in accounting policies due to other reasons:No
Changes in accounting estimates:
No
Restatement of prior period financial statements:
No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2023

9,323,074 shares As of March 31, 2022

9,323,074 shares

1,235,672 shares As of March 31, 2022

1,145,933 shares

8,099,101 shares Year ended March 31, 2022

8,177,689 shares

Number of treasury shares at the end of the period
As of March 31, 2023
Average number of shares during the period
Year ended March 31, 2023

2

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2022

As of March 31, 2023

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract assets

8,759
25,327

6,989
23,649

220
32

35
19

795
2,550

1,117
4,787

670
(24)

1,156(20)38,332

37,734

Buildings and structures, net
Machinery, equipment and vehicles, net

4,157
773

4,206
568

Tools, furniture and fixtures, net
Land

376
10,374434
10,092

608
31

543
58

16,321

15,903

Intangible assets
Investments and other assets

667

877

Investment securities
Deferred tax assets

7,663
234

8,059
240

Retirement benefit asset
Other

449
847

514
894

Allowance for doubtful accounts

(224)

(221)

Investments in leases
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipmentConstruction in progress
Other, net
Total property, plant and equipment

Total investments and other assets
Total non-current assets
Total assets

3

8,970

9,486

25,95826,26764,29064,001

(Millions of yen)
As of March 31, 2022

As of March 31, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade

1,761

1,243

Short-term borrowings
Current portion of long-term borrowings

8,120–

5,357
1,700

Accrued expenses
Income taxes payable

4,887
774

4,715
908

Contract liabilities
Provision for bonuses

655
434

2,138423Provision for loss on orders received
Provision for warranties for completed construction

–299

45
202

Other

1,269

696

Total current liabilities

18,202

17,430Bonds payable
Long-term borrowings

1,000
4,580

1,000
3,380

Deferred tax liabilities
Deferred tax liabilities for land revaluation

1,644
1,095

1,730
1,095

Retirement benefit liability
Asset retirement obligations

392
799

392
800

Other

98

84

Non-current liabilities

Total non-current liabilities

9,610

8,483

27,81325,914

Share capital
Capital surplus

18,5801,273

18,580
1,273

Retained earnings
Treasury shares

17,533(2,936)18,135(3,200)Total shareholders' equity

34,45034,789Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

2,632

3,374

Deferred gains or losses on hedges
Revaluation reserve for land

3106

(6)
684

Foreign currency translation adjustment
Remeasurements of defined benefit plans

(878)
160

(899)
140

Total accumulated other comprehensive income

2,024

3,293

Non-controlling interests
Total net assets
Total liabilities and net assets

424

36,47738,08764,29064,001

Consolidated statements of income and consolidated statements of comprehensive income(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023

Net sales
Cost of sales

59,17749,01647,35136,543Gross profit

10,161

10,807

Selling, general and administrative expenses

7,352

8,310

Operating profit

2,808

2,497

Interest income
Dividend income

6273

6252

Foreign exchange gains
Gain on sale of scraps

16377

10038

Subsidy income
Reversal of allowance for doubtful accounts1070330

Other

109

68

Total non-operating income

737

499

Interest expenses
Other62882
17

Total non-operating expenses

71

100

3,474

2,896

Gain on sale of non-current assets
Gain on sale of investment securities

50333

149880

Other

140

Total extraordinary income

398

1,030

Non-operating income

Non-operating expenses

Ordinary profit
Extraordinary income5(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023

Extraordinary losses
Loss on valuation of investment securities

9674

Loss on revision of retirement benefit plan
Impairment losses

59––
304

Extra retirement payments
Other–
0111
27

Total extraordinary losses

157

518

Profit before income taxes

3,716

3,408

Income taxes - current

1,331

1,257

Income taxes - deferred

50

(228)

Total income taxes

1,382

1,028

Profit

2,334

2,379

Profit attributable to owners of parent
Profit attributable to non-controlling interests

2,334
0

2,378
1

Other comprehensive income
Valuation difference on available-for-sale securities(1,305)

742

(6)
(44)

(9)
(20)

Profit attributable toDeferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

(34)

(20)

(1,390)691

Comprehensive income

943

3,071

Comprehensive income attributable toComprehensive income attributable to owners of parent

943

3,069

01

Total other comprehensive income

Comprehensive income attributable to non-controlling interests

6Consolidated statements of changes in equity
Fiscal year ended March 31, 2022
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

18,580Retained earnings

1,273

Total shareholders'equityTreasury shares

16,148(2,933)33,068Changes during period
Dividends of surplus

(949)

(949)

Profit attributable to owners ofparent

2,334

2,334

Purchase of treasury shares

(3)

(3)

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

–

–

1,384

(3)

1,381

18,5801,273

17,533(2,936)34,450

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of period

3,937

Deferred
gains orlosses onhedges9Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

106(833)

TotalRemeasurements

accumulatedof defined benefit

otherplanscomprehensive

Noncontrollinginterests

Total net
assetsincome

195

3,415

0

36,484

Changes during period
Dividends of surplus(949)

Profit attributable to owners ofparent

2,334

Purchase of treasury shares(3)

Net changes in items otherthan shareholders' equity(1,305)(6)

Total changes during period(1,305)(6)–

Balance at end of period

2,632

3106–

7(44)

(34)

(1,390)2(1,388)(44)(34)(1,390)

2(7)

(878)

160

2,024

236,477

Fiscal year ended March 31, 2023
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

18,580Retained earnings

1,273

Total shareholders'equity

Treasury shares

17,533(2,936)34,450Changes during period
Dividends of surplus(1,197)(1,197)

Profit attributable to owners ofparent

2,378

2,378

Purchase of treasury shares

(302)

(302)

Disposal of treasury shares

3838

Reversal of revaluation
reserve for land

(577)

(577)

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

––

602

(263)

339

18,5801,273

18,135(3,200)34,789

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of period

2,632

Deferred
gains orlosses onhedges3

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

106(878)

Total
Remeasurements

accumulatedof defined benefit

otherplanscomprehensive

Noncontrollinginterests

Total net
assetsincome

160

2,024

2

36,477

Changes during periodDividends of surplus(1,197)

Profit attributable to owners ofparent

2,378

Purchase of treasury shares(302)

Disposal of treasury shares

38

Reversal of revaluation
reserve for land(577)

Net changes in items otherthan shareholders' equity

742

(9)

577

(20)

(20)

1,269

1

1,270

Total changes during period

742

(9)

577

(20)

(20)

1,269

1

1,610

3,374

(6)

684

(899)

140

3,293

4

38,087

Balance at end of period

8Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023
3,716

3,408

745
1783
1–7304(7)

Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset

40
(66)

(10)
(92)

Increase (decrease) in provision for loss on orders received
Increase (decrease) in provision for warranties for completed

(30)

45

Depreciation
Amortization of goodwill
Impairment losses
Increase (decrease) in allowance for doubtful accounts

construction
Interest and dividend income

(48)

(97)

(279)

(258)

Interest expensesForeign exchange losses (gains)

62(166)82(110)Loss (gain) on valuation of investment securities
Loss (gain) on sale of investment securities

96(333)74(880)Loss (gain) on sale of non-current assets
Loss on retirement of non-current assets(50)
0(129)
3(10,362)
330

1,689
185

Decrease (increase) in inventories
Decrease (increase) in advance payments to suppliers

5,953
231

(2,541)(164)

Increase (decrease) in trade payables
Increase (decrease) in contract liabilities

1,243(1,782)

(697)
1,478

Other, net916(1,054)

Subtotal

225

2,013

Interest and dividends received

Decrease in trade receivables and contract assets
Decrease (increase) in investments in leases

279

258

Interest paid
Income taxes paid

(63)
(1,539)(82)(1,083)

Net cash provided by (used in) operating activities(1,097)

1,105

Cash flows from investing activities
Payments into time deposits

(102)

(102)

Proceeds from withdrawal of time deposits
Purchase of non-current assets

102(1,013)138(1,187)

Proceeds from sale of non-current assets
Purchase of investment securities

0(43)507(55)

Proceeds from sale and redemption of investment securities
Purchase of shares of subsidiaries resulting in change in scope

644

1,565(619)–of consolidation
Other, net
Net cash provided by (used in) investing activities

9200(39)

(830)

826

(Millions of yen)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023
4,164

(2,763)

Proceeds from long-term borrowings
Repayments of long-term borrowings

–
(8)

500–

Purchase of treasury shares
Proceeds from disposal of treasury shares(3)–(302)
38

Proceeds from share issuance to non-controlling shareholders
Dividends paid

2(945)–(1,193)

Net cash provided by (used in) financing activities

3,208(3,719)Effect of exchange rate change on cash and cash equivalents

6453

Net increase (decrease) in cash and cash equivalents

1,345(1,733)

Cash and cash equivalents at beginning of period

7,309

8,654

Cash and cash equivalents at end of period

8,654

6,921

10