TKK Report 2020
Financial Section(Fiscal year ended March 31, 2020)

This material is the Financial Section of the TKK Report 2020,
the integrated report published by Toyo Kanetsu K.K. thatsummarizes the financial information for the Company’s fiscal
year 2019 (Apr. 2019 to Mar. 2020).

CONTENTS
1

Analysis of Operating Environment and Results

2

Business Risks

8

Consolidated Balance Sheet

10

Consolidated Statement of Income and Comprehensive Income

11

Consolidated Statement of Changes in Equity

13

Consolidated Statement of Cash Flows

15

Notes to Consolidated Financial Statements

45

Independent Auditor’s Report

48

Corporate Data

48

Directory

Analysis of Operating Environment and Results

Although Japan’s economy continued on a moderate

Logistics Solutions Businessrecovery in the fiscal year under review, helped by

Sales were recorded mainly for airport equipment

improvements in employment and income, the outlook

projects and warehouse automated equipment projects

for the economy remained uncertain due to such factors

incorporating our Multishuttle warehouse system foras trade friction between the US and China and the

e-commerce, co-ops, and retail. Operating profit greweffects of a consumption tax hike. In addition, since themainly due to improved profitability from large-scale

beginning of 2020, the global spread of COVID-19 has

projects strengthened by project management, more

had a marked impact on economies, sparking concerns

maintenance operations, and decreases in expenses.

about an economic downturn.
As a result, consolidated net sales in this businessIn the Logistics Solutions Business, demand for

decreased 1.3% year on year to ¥28,887 million, whileautomated equipment remained strong, backed by anoperating profit increased 47.4% to ¥2,812 million, andincrease in the volume of goods for e-commerce andorders received grew 19.0% to ¥36,283 million.

co-ops as well as labor shortages. However, uncertainty
has grown due to the spread of COVID-19. On the other

Plant & Machinery Business

hand, for baggage handling systems for airports,

While the demanding business environment hasaggressive capital investment ahead of the 2020 Tokyo

prevented us from receiving orders for new, large-scale

Olympics and Paralympics has run its course andtank projects, maintenance projects for refineries indemand for capital investment is expected to make aJapan contributed to stable sales, and we worked tosudden turn and decline in the future.

increase sales by contracting for processing of steel
products other than tanks at overseas subsidiaries. In

In the Plant & Machinery Business, the business

addition to higher sales, operating losses were reduced

environment is becoming increasingly tough, due in partby a reversal of the allowance for construction projects

to a recent decline in crude oil prices (to abnormal levels)

recorded in the past fiscal years, as well as the effects ofdue to the influence of COVID-19, leading to significant

in-depth cost reduction and other actions.

restraints in capital investment in oil- and gas-related
markets that have lost their remaining strength. ThisAs a result, consolidated net sales in this businesshappened just as negotiations to adjust production inincreased 18.1% year on year to ¥9,950 million, and an

oil-producing countries had stalled, despite some

operating loss of ¥305 million was posted (compared

countries moving to resume investment in oil- and gas-with ¥12,21 million in the previous fiscal year), while

related equipment in anticipation of increased energy

orders received decreased 13.4% to ¥9,903 million.

demand expected from the economic and population
growth of emerging nations.

Other Businesses(including Life & Work Environmental Business)

Given this business environment, net sales for the

Efforts were focused mainly on leveraging thecurrent fiscal year were ¥46,518 million (up 2.9% year on

specializations of each subsidiary to develop sales foryear). Due to improvements of profitability in theindustrial machinery, general construction andLogistics Solutions Business, the Company’senvironmental surveys, etc. Consolidated net sales

consolidated operating profit was ¥2,591 million (upincreased 2.5% year on year to ¥7,680 million. Operating

84.3%) while ordinary profit was ¥2,970 million (upprofit decreased 20.6% to ¥880 million, and orders

67.7%). Profit attributable to owners of parent came toreceived decreased 22.7% to ¥1,053 million.

¥1,717 million (up 67.5%). In addition, orders receivedrose 9.1% to ¥47,241 million.

TKK Report 2020 Financial Section

1

Business Risks

Toyo Kanetsu’s risk management system includes a risk

For this reason, we have begun to develop systems andmanagement officer—appointed from among theenvironments that enable diverse workstyles—while

directors who oversees the risk management of the

improving productivity—as we promote digital

Company and the Group—as well as a Group-wide risk

management with a view to preventing infection. On the

management department, under the command of thefinancial side, we will prepare for contingencies, while

risk management officer who identifies risks andmaking careful investment decisions and ensuring thatmonitors evaluations and results. Important risks are

we have enough capital on hand for our needs.

regularly reviewed after considering changes in thebusiness environment and the status of risk responses,

Forward-looking statements in the text are based on

and we strive to ensure that effective risk

assessments as of June 26, 2020, the date of submission

countermeasures are being quickly implemented.

of the Company’s Annual Securities Report (Japanese).

Out of all the risks that could affect our business(1) Risks related to global economic and energy

activities, some that would have a significant impact aremarket trends, etc.

shown below. However, this is not an exhaustive list of

The TKK Group’s core businesses could be affected byrisks related to the Group and there are risks that aremarket trends, such as the following:difficult to foresee.
In the Logistics Solutions Business, we supply products
We recognize that the effects of the spread ofand systems mainly for the retail, wholesale, and co-op

COVID-19, which emerged in 2020, pose a significant

industries. We also provide baggage handling systems,

risk to our company on many fronts. For our businessprimarily to airports in Japan. Consequently, thisresults, the impact in the fiscal year ended March 31,

business segment could be affected if investments in2020 was limited. In the fiscal year ending March 31,

logistics facilities slow due to a lower volume in logistics

2021, however, there is a downside risk to businessas a result of a recession or declining birthrate and aging

performance due to the cancellation or delay of some

population or trends in demand for air travel. We areprojects that were ordered as well as delays in thetherefore intensifying our maintenance operations using

supply of parts purchased overseas. In addition,

AI and IoT technologies as well as expanding overseas,

constraints on oil- and gas-related capital investments,

mainly in Southeast Asia.

based on an observed decrease in energy demand, and2lower demand for airport-related equipment due to a

In the Plant & Machinery Business, we supply tanks for

sharp drop in the number of air travelers could adversely

LNG plants and refineries, as well as perform

affect the Group’s business results over the medium tomaintenance on existing crude oil tanks, etc. This

long term. In the Logistics Solutions Business, on thesegment’s results could be adversely affected due to aother hand, we believe that there are opportunities forplant owner discontinuing, postponing, or making major

business expansion, including from the growth andrevisions to investment plans due to global economicstrong adoption of online shopping after the end oftrends. Other factors that could affect business results

COVID-19 as well as the progress of mechanization andare the economic and social conditions of oil and gas

automation to avoid crowds within logistics operations.

producing and consuming countries; trends in energy

Therefore, in response to new social patterns, we will

and environmental policies in each country; trends in crude

provide next-generation solutions that are effective foroil and LNG prices; and other factors. We are therefore

ensuring social distancing as a countermeasure against

strengthening initiatives that improve the profitability of

infection. Moreover, while the Group has thoroughly

maintenance projects, in this way establishing aadopted ways to curb the spread of infection, ourbusiness structure that is resistant to fluctuations inhighest priority will be to continue to put the safety of ourorders and that secures a stable source of income.

employees and their families and other stakeholders first.

In addition, risks such as the following are possible due

TKK Report 2020 Financial Section

to a deterioration of the economic environment:

However, unexpected costs could be incurred due tovarious factors, such as shortened construction periodsa) Fluctuations in foreign exchange rates

due to unexpected changes in construction plans under

The TKK Group’s business activities include thepressure to reduce delivery times and delivery deadline

overseas manufacture of products, sales of materials,

adjustments due to carrying out multiple large projects

and construction work, and transactions that are mainly

simultaneously within a certain time period. Moreover,conducted in U.S. dollars. Currently, we view the risk ofsome of the core products provided by this businessfluctuations in foreign exchange rates as low because

segment include products purchased from specificforeign currency-denominated transactions and theoverseas business partners.

amount of assets held in foreign currencies are relatively

The execution of projects could be affected if thesesmall, but the unexpected appreciation of the yen could

products cannot be purchased consistently due toadversely affect the Group’s business results andchanges in the business policies and environment of our

financial position in the future.

business partners or due to natural disasters, accidents,and so on.

b) Fluctuations in interest rates
To establish credit for trade receivables and to acquire

In the Plant & Machinery Business, we repair storage

fixed assets, the TKK Group secures funding fromtanks, mainly at refineries in Japan. We have establishedfinancial institutions that consider the balance of short-a stable construction system while strengthening

and long-term purchasing ratios. Although low interest

cooperation with partner companies, but if there were arates have continued due to large-scale monetary

shortage of construction workers or if the purchase priceeasing, etc., funding costs could increase if interest rates

of materials and equipment were to jump, this could

rise, which could adversely affect the Group’s

affect business results of this business segment.

performance and financial position.
The TKK Group conducts some operations in overseasc) Valuation of securities held

markets, primarily in the Plant & Machinery Business.

The TKK Group holds market value securities. We revalue

Further, our consolidated subsidiary in Indonesia works

stock prices on the last day of the fiscal year, and if theon local construction projects and processes steel

stock prices were to fall significantly, this could adverselymaterials, including steel used for storage tanks. Our

affect the Group’s performance and financial position.

local subsidiary in Malaysia maintains baggage handlingequipment at local airports and maintains equipment at(2) Risks related to the execution of projects

local petrochemical plants. These overseas operations

In the Logistics Solutions Business, project management

carry inherent risks, as stated below, and the TKK

and the ability to execute operations are becomingGroup’s business results and financial position could be

increasingly important. This is because the role ofadversely affected by these risks.

distribution centers in the supply chain is growing withthe expansion of the e-commerce market and more

(1) Unexpected changes in laws and regulations

outsourcing of logistics operations, and because there is(2) Political and economic instability

a tendency for distribution centers to grow larger in line

(3) Difficulties in securing human resources

with the streamlining of logistics operations and the(4) Tax system revisions that could be unfavorable to theconsolidation of bases.

TKK Group(5) Social disorder due to terrorism, war, epidemics,

For these reasons, we carefully manage delivery

disasters, or other factors.

deadlines from sales proposals through to construction
and strive to reduce costs and workloads by

In addition, when working on a project, we take out

standardizing processes and improving productivity.

product liability insurance for that project, and to ensure

TKK Report 2020 Financial Section

3

quality, the Group has established internal regulations

domestic and overseas companies that have state-of-and put in place a quality management system tothe-art technology as well as collaborations with startups

strengthen quality control. We have also established aleveraging our corporate venture capital (CVC).

system that enables a quick response to quality
problems by placing the department responsible for

However, as the lifecycle of products and technologies

quality control directly under the president. However, inbecomes shorter and shorter, any delays in meetingthe unlikely event of serious quality complaints ormarket requests could result in a decline in the Group’s

problems with a product, not only would profits from thecompetitiveness, adversely affecting our business results

project deteriorate due to repair costs andand financial position over the medium to long term.

indemnification, this could also lead to a decline in theGroup’s social reputation, which could adversely affect(4) Risks related to the launch of new businesses

our business results and financial position.

For a long time, the TKK Group has been developing two
main business segments: Logistics Solutions and Plant &(3) Impact of intensifying competition for orders

Machinery. So far, these two businesses have

The TKK Group’s main businesses are order based,

underpinned the Group’s earnings in a complementary

exposing us to severe competition for orders, soway, but we recognize that fluctuations in the

unreasonable downward pressure on profitability could

environmental surrounding these businesses are large

adversely affect our business results and financial

and the volatility of earnings is high.

position. Further, customer policies and plans, changes
in the business environment of the industry, and industry

That is why we are pursuing the possibility of creating a

restructuring could affect our ability to obtain orders.

third mainstay business segment to add to Logistics
Solutions and Plant & Machinery by taking all

In response to these risks, in the Logistics Solutions

conceivable steps, such as M&As, setting up corporate

Business we are expanding our customer areas in Japanventure capital (CVC), and collaboration with startups.

and overseas, and providing optimal solutions by flexibly

4

introducing outside technologies, while at the same time

However, if these strategic investments do not achieve

promoting in-house production and standardized

our initial expectations or develop the expected

products to strengthen price competitiveness. We aresynergies or do not lead to the launch of new

taking on other initiatives, such as revamping our internalbusinesses, the Group’s business results and financial

systems, to further improve the efficiency of our operations.

position could be affected over the medium to long term.

In the Plant & Machinery Business, as the severe(5) Impact of climate change

business environment drags on, we are improving and

The TKK Group places great importance on thedeveloping our core technology for tank EPC (engineering,promotion of ESG management and the international

procurement, construction) contracts, and are working

goals set out in the SDGs and Paris Agreement.

to obtain orders by taking advantage of our superior

Especially, we recognize that “respond[ing] to changes inquality, as well as expanding our business domains

the business environment caused by climate change” isthrough overseas subsidiaries.

one of our most material management issues.

Further, given the tough competition for orders, the TKK

We are identifying business opportunities amidGroup has established a management vision, Innovative

increasing worldwide environmental awareness and the

Solutions for Logistics & Energy, with the aims oftransition to a low-carbon and decarbonized society. We

sustainably improving corporate value and contributing

are also using our technologies to develop large liquid

to social development. For this reason, we are working

hydrogen tanks and we are participating in biomasson technological developments in collaboration withpower generation. In these ways, we are promoting

TKK Report 2020 Financial Section

environmental initiatives. Also, based on our

Therefore, we strive to retain employees by creating aenvironmental policy, we have acquired and updated ISO

comfortable workplace environment after revamping our

14001 certification, and we actively operate and maintainpersonnel system to improve and revitalize ouran environmental management system.

employees. We have also formulated an action plan topromote women’s participation and advancement in the

However, if the impact of climate change becomes more

workplace, and we take on initiatives to foster andserious in the future, the decrease in demand for LNG

appoint female managerial candidates, as well as toand crude oil tanks due to a shifting energy mix could

promote staggered work hours and to improve the rate

adversely affect the Company’s business environment.

of taking paid leave.

Environmental issues, such as soil, air, water, and marine
pollution caused by the Group, could lead to a decrease(8) Impact on occupational health and safety

in social trust.

The TKK Group considers safety to be our highest
priority. Under our Occupational Safety and Health(6) Impact of information security and maintaining
the information infrastructure

Policy, we strive to ensure and improve the health andsafety of our employees by acquiring and renewing

The TKK Group handles, while doing business, a range

OHSAS 18001 and ISO 45001 certification, establishingof confidential information, including customer anda supervisory department directly under the president,

technical information. To strengthen the management ofholding group safety meetings, conducting on-site

this information, we have organized the Information

patrols, and maintaining and improving safety systems,

Security Committee to thoroughly communicate theincluding at partner companies.

importance of information security, for instance throughemployee education, and to implement security

However, in the event of problems or an accident, evenmeasures for information systems. However,though countermeasures have been taken, they could

cyberattacks, including via computer viruses, could

not only interfere with plant operations and customer

interfere with the functioning of these information

service, but could also lead to compensation forsystems, and if confidential information were lost or

damages, criminal penalties, administrative punishment,

leaked, it could damage the Group’s reputation forand the loss of social trust, which could affect ourreliability and affect business activities.

business activities and financial position.

Moreover, while the Group aims to transform the(9) Risks related to natural disasters, epidemics,

business model through IT, including by automating andetc.

streamlining operations through robotic process

To prepare for fires, earthquakes, large-scale natural

automation (RPA), and by introducing businessdisasters, and epidemics, the TKK Group has written astandardization systems, if we lag behind in these digitalbusiness continuity plan (BCP) manual, and we havetransformation (DX) initiatives, we will not be able totaken all necessary steps for business continuity, such

establish a competitive advantage and could lose out on

as establishing a contact system, building up emergency

business opportunities.

stockpiles, conducting seismic reinforcement work, andsetting up shelters at major manufacturing and(7) Impact on securing and developing humandevelopment bases in Japan.

resources
The TKK Group recognizes that securing and developing

However, serious physical injury caused by a greater-human resources are two of our most important issues,

than-expected disaster could have a significant impact

and that any drain of human resources and increasing

not only on the health of employees but also on the

recruitment costs could affect our business activities.

operation of our plants, and although appropriate
coverage is taken out through non-life insurance, theTKK Report 2020 Financial Section

5direct and indirect damage and recovery costs could belarger than anticipated, which would adversely affect ourbusiness results and financial position.

(10) Compliance risks
The TKK Group operates in the field of social
infrastructure, a field that cannot exist without the trustof society. We recognize that compliance with laws andregulations is one of the most important fundamentals oftrusted business operations.
Therefore, in addition to putting in place anorganizational structure, such as of setting up theCompliance Committee and appointing supervisors, theCompany has established regulations, including TKKGroup Charter of Corporate Behavior and we arepromoting initiatives to maintain compliance, such as
ensuring all Group directors and employees are fully
informed of their social responsibility and public mission.
However, in the unlikely event that laws and regulationsin Japan or overseas are violated, large surcharges anddamages could occur, which would not only adversely
affect the Group’s business results and financial position
but would also reduce the public’s trust in the Groupand affect our business continuity.

6

TKK Report 2020 Financial Section

TKK Report 2020 Financial Section

7

Consolidated financial statements, etc.
(1) Consolidated financial statements(i) Consolidated balance sheet(Millions of yen)Previous fiscal period(As of March 31, 2019)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
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 equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Tools, furniture and fixtures, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

8

TKK Report 2020 Financial Section

*1

*3
*3
*3
*3, *4*2

7,666
23,267
1,499
38
4,252
1,670
534
(22)
38,906

3,321
1,021
310
10,556622
1215,845
357
8,671
63
332
868
(289)
9,646
25,85064,756

Current fiscal period(As of March 31, 2020)

*1

*3
*3
*3
*3, *4*2

11,507
15,413
937
27
5,179
1,977
435
(16)
35,461

4,218
1,016
364
10,568253
20
16,442
381
8,013
45
38
889
(286)
8,699
25,52360,985

(Millions of yen)Previous fiscal period(As of March 31, 2019)
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Accrued expenses
Income taxes payable
Advances received
Provision for bonuses
Provision for loss on order received
Provision for warranties for completed
construction
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

*5
*3
*3

*3

*4

*4

1,570
7,849
514
7,534
659
2,020
227
121

Current fiscal period(As of March 31, 2020)

*5
*3
*3

919
7,849
619
4,763
553
2,790
267
241

555

389

870
21,922455
18,848

4,627
1,267
1,095
358
224
27
7,599
29,522

*3

*4

4,488
1,520
1,095
152
235
40
7,534
26,382

18,5801,273
14,549(1,077)33,324

18,5801,273
15,224(2,355)32,722

2,621

2,666

–
106
(759)
(61)
1,907
1
35,23464,756

*4

0
106
(729)
(165)
1,878
1
34,60260,985TKK Report 2020 Financial Section

9

(ii)

Consolidated statement of income and comprehensive income(Millions of yen)Previous fiscal year
(From April 1, 2018
to March 31, 2019)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on bargain purchase
Disaster donations
Other
Total extraordinary income
Extraordinary losses
Loss on valuation of investment securities
Loss on disaster
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable toProfit attributable to owners of parent
Loss attributable to non-controlling interests
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

10

TKK Report 2020 Financial Section*1*2, *3*4

45,18838,194
6,994
5,588
1,406

Current fiscal year
(From April 1, 2019
to March 31, 2020)*1*2, *346,51837,355
9,162
6,570
2,591

12
302
–
136
452

9
277
5
160
452

49
19
17
87
1,771

59
–
14
74
2,970

36
74
87
46
1
246

0
578
–
–
–
579

237
159
20
418
1,599
748
(173)
574
1,025

673
39
48
761
2,788
759
311
1,070
1,717

1,025
(0)

1,717
(0)

(374)
–
(83)
(66)
(523)
501

44
0
30
(104)
(29)
1,688

*4

501

1,688

(0)

(0)

(iii) Consolidated statement of changes in equity
Previous fiscal year (From April 1, 2018 to March 31, 2019)(Millions of yen)
Shareholders’ equity
Share capital
Balance at beginning of
period18,580Capital surplus

Retained earnings

1,273

15,750Treasury shares

Total shareholders’equity(1,397)

34,207

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Reversal of revaluation
reserve for land
Purchase of treasury
sharesCancellation of treasury
sharesNet changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period

(930)

(930)

1,025

1,025

26

26
(1,004)(1,004)(1,323)

1,323

–

–

–

(1,201)

319

(882)

18,5801,273

14,549(1,077)33,324

Accumulated other comprehensive income
Valuation
Deferred gains Revaluationdifference onor losses onreserve foravailable-forhedges
landsale securities
Balance at beginning of
period

2,995

–

133

Foreigncurrencytranslation
adjustment(676)

NonTotal
Remeasureaccumulated controllingments ofinterests
otherdefined benefit
comprehensive
plansincome52,4580Total net
assets36,666

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Reversal of revaluation
reserve for land
Purchase of treasury
sharesCancellation of treasury
sharesNet changes in items otherthan shareholders’ equity

(930)
1,025
26
(1,004)
–
(374)

–

(26)

(83)

(66)

(550)

0

(550)

Total changes during period

(374)

–

(26)

(83)

(66)

(550)

0

(1,432)

Balance at end of period

2,621

–

106

(759)

(61)

1,907

1

35,234TKK Report 2020 Financial Section

11

Current fiscal year (From April 1, 2019 to March 31, 2020)(Millions of yen)
Shareholders’ equity
Share capital
Balance at beginning of
period18,580Capital surplus

Retained earnings

1,273

14,549Treasury shares

Total shareholders’equity(1,077)33,324

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period

(903)

(903)

1,717

1,717
(1,416)(1,416)

(138)

138

–

–

–

675

(1,277)(602)

18,5801,273

15,224(2,355)32,722

Accumulated other comprehensive income
Valuation
Deferred gains Revaluationdifference onor losses onreserve foravailable-forhedges
landsale securities
Balance at beginning of period

2,621

–

106

Foreigncurrencytranslation
adjustment(759)

NonTotal
Remeasureaccumulated controllingments ofinterests
otherdefined benefit
comprehensive
plansincome
(61)

1,907

1

Total net
assets35,234

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items otherthan shareholders’ equity

12

(903)
1,717
(1,416)
–
44

0

–

30

(104)

(29)

(0)

(29)

Total changes during period

44

0

–

30

(104)

(29)

(0)

(631)

Balance at end of period

2,666

0

106

(729)

(165)

1,878

1

34,602TKK Report 2020 Financial Section

(iv) Consolidated statement of cash flows(Millions of yen)Previous fiscal year
(From April 1, 2018
to March 31, 2019)
Cash flows from operating activities
Profit before income taxes
Depreciation
Gain on bargain purchase
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Increase (decrease) in provision for loss on order
received
Increase (decrease) in provision for warranties forcompleted construction
Interest and dividend income
Interest expenses
Disaster donations
Loss on disaster
Foreign exchange losses (gains)
Loss (gain) on valuation of investment securities
Loss (gain) on sales of investment securities
Loss (gain) on sales of non-current assets
Loss on retirement of non-current assets
Decrease (increase) in trade receivables
Decrease (increase) in investments in leases
Decrease (increase) in inventories
Decrease (increase) in advance payments - trade
Increase (decrease) in trade payables
Increase (decrease) in advances received
Other, net
SubtotalInterest and dividends received
Interest paid
Disaster donations received
Payments associated with disaster loss
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Proceeds from sales and redemption of securities
Purchase of non-current assets
Proceeds from sales of non-current assets
Purchase of investment securities
Proceeds from sales and redemption of investment
securities
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Other, net
Net cash provided by (used in) investing activities

Current fiscal year
(From April 1, 2019
to March 31, 2020)

1,599
728
(87)

2,788
718
–

(3)

(9)

(13)
4

(195)
139

(62)

120

(25)

(165)

(315)
49
(46)
159
72
237
(74)
(31)
8
(13,749)
272
(419)
95
3,714
1,621
(134)
(6,400)
314
(50)
46
(159)
(449)
(6,698)

(287)
59
–
39
(17)
673
(578)
6
(18)
7,865
562
(1,221)
1(3,428)
769
(287)
7,533
287
(67)
–
(24)
(772)
6,955

–
–
500
(1,080)
375
(717)

(166)
118
–
(1,424)
4
(250)

74

878

(427)

–

(40)
(1,315)27(812)

TKK Report 2020 Financial Section

13

(Millions of yen)Previous fiscal year
(From April 1, 2018
to March 31, 2019)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Proceeds from disposal of treasury shares
Proceeds from share issuance to non-controllingshareholders
Dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

14

TKK Report 2020 Financial Section*1

Current fiscal year
(From April 1, 2019
to March 31, 2020)

3,217
2,000
(38)
(1,004)
–

–
480
(514)
(1,566)
149

1

0

(926)
3,249

(901)
(2,351)(45)

1(4,810)12,420
7,609

3,793
7,609
11,402*1

NotesBasis of presenting the consolidated financial statements
The accompanying consolidated financial statements of the Company and its domestic consolidated subsidiaries
are prepared on the basis of accounting principles generally accepted in Japan, which are different in certain
respects as to application and disclosure requirements of International Financial Reporting Standards, and arecompiled from the consolidated financial statements prepared by the Company as required by the Financial
Instruments and Exchange Act of Japan. The accounts of overseas-consolidated subsidiaries are based on theirfinancial statements prepared in conformity with generally accepted accounting principles and practices prevailingin the respective countries in which the subsidiaries are incorporated.
Significant accounting policies for preparation of the consolidated financial statements
1. Disclosure of scope of consolidation
Number of consolidated subsidiaries: 10 companies
Names of major consolidated subsidiaries are omitted since those names are described in “TKK Group Companies.”
2. Disclosure about application of the equity method
Not applicable
3. Disclosure about fiscal years, etc. of consolidated subsidiaries
Of the Company’s consolidated subsidiaries, Kankyo Research Institute Inc., Toyo Kanetsu Corporate Venture
Investment Partnership, Toyo Kanetsu Corporate Venture Fund Ⅱ, PT Toyo Kanetsu Indonesia, Toyo Kanetsu
Singapore Pte. Ltd. and Toyo Kanetsu (Malaysia) Sdn. Bhd. have a closing date of December 31. In preparation of
the consolidated financial statements, their financial statements as of December 31 are used. However, for majortransactions that occurred between that date and the consolidated balance sheet date, the necessary adjustments are
made in the consolidated financial statements.
4. Disclosure of accounting policies(1) Accounting policy for measuring significant assets(i) Securitiesa) Held-to-maturity bonds: Stated at amortized cost (straight-line method)b) Available-for-sale securities
Available-for-sale securities with available fair market values are stated at fair value based on the market
price or the like on the consolidated balance sheet date (valuation differences are directly charged or
credited to net assets, and cost of securities sold is determined by the moving-average method).
Available-for-sale securities without available fair market value are valued at cost determined by themoving-average method.
(ii)

Derivatives
Derivatives are valued at fair value.

(iii) Inventoriesa) Finished goods: Primarily, at cost using the first-in first-out method(The value on the balance sheet is written down to reflect a decline in profitability.)b) Work in process: Primarily, at cost using the specific identification method(The value on the balance sheet is written down to reflect a decline in profitability.)c) Raw materials: Primarily, at cost using the weighted-average method(The value on the balance sheet is written down to reflect a decline in profitability.)

TKK Report 2020 Financial Section15

(2) Accounting policy for depreciation of significant assets(i) Property, plant and equipment
The Company and its domestic consolidated subsidiaries use the declining-balance method, and overseas
consolidated subsidiaries use the straight-line method in accordance with provisions of accounting standards intheir respective countries.
However, the Company and its domestic consolidated subsidiaries use the straight-line method to depreciatebuildings (excluding facilities attached to buildings) acquired on or after April 1, 1998, and facilities attached
to buildings and structures acquired on or after April 1, 2016.
The estimated useful lives of major items are as follows:
Buildings and structures
2 to 57 years
Machinery and equipment
2 to 17 years(ii) Intangible assets
Intangible assets are amortized using the straight-line method.
Software for internal use is amortized using the straight-line method over the estimated useful life as internallydetermined (5 years).
(3) Accounting policy for significant provisions(i) Allowance for doubtful accounts
To cover losses from bad debts for notes and accounts receivable - trade, loans receivable and others, anallowance for doubtful accounts is provided based on historical experience of bad debts for general receivables.
For specific receivables such as highly doubtful receivables, the collectibility is individually considered and theestimated amount of uncollectible accounts is provided as the allowance.
(ii) Provision for bonuses
To pay bonuses to employees, out of the estimated amount to be paid in the following fiscal year, an amountattributable to the current fiscal year is recorded.
(iii) Provision for loss on order received
To make provision for losses on orders received, as for existing construction, for which an amount of loss canbe reasonably estimated at the end of the current fiscal year, an expected amount of loss in future is recorded as
the provision.
(iv) Provision for warranties for completed construction
To cover costs of warranty against defects and after-sales service for completed construction, an amount isrecorded based on the historical loss rate as well as consideration of an amount for individual construction thatis expected to incur in future at the end of the current fiscal year.
(4) Method of accounting for retirement benefits(i) Method of attributing estimated retirement benefits to periods
For the purpose of attributing estimated retirement benefits over the period up to the end of the current fiscal
year in the calculation of retirement benefit obligations, the benefit formula method is applied.
(ii) Method of amortizing actuarial gain or loss and past service cost
Past service costs are recorded as an expense in the year they are incurred.
With regard to actuarial gain or loss, the amount is amortized by the straight-line method over a certain term
within the average remaining service period of the eligible employees (5 years) for each applicable fiscal year,
and expensed from the year following the year in which the gain or loss is recognized.
(5) Accounting policies for significant revenues and expenses(i) Recognition of revenues and costs of completed construction contracts
The percentage-of-completion method is applied to construction showing certainty of performance on the
progress made up until the end of the current fiscal year (the cost-to-cost method is applied to estimate the extent
of progress toward completion), and the completed-contract method is applied to other construction.
(ii) Standards for recognition of revenues and expenses related to finance lease transactions
Sales and costs are recognized at the time of receiving lease payments.
(6) Accounting policy for hedging(i) Method of hedge accounting
In principle, the deferral accounting is applied. The allocation method is applied to forward foreign exchange
contracts that meet requirements thereof, and the exceptional treatment is applied to interest rate swaps that meetrequirements thereof.

16

TKK Report 2020 Financial Section

(ii) Hedging instruments and hedged items
Hedging instruments: ......... Forward foreign exchange contracts, Interest rate swaps
Hedged items: ..................... Forecast transactions denominated in foreign currencies and borrowings(iii) Hedging policy
In accordance with the “Rules on Handling of Derivative Transactions” established by the Company, theCompany and its consolidated subsidiaries (collectively, the “Group”) do not enter into any derivativetransaction for speculative purposes but use derivative transactions only to hedge exchange rate fluctuation risk
and interest rate fluctuation risk.
(iv) Method of assessing the hedging effectiveness
The Group confirms effectiveness by comparing and examining cash flows of hedging instruments and hedged
items in advance. However, the Group omits assessment of effectiveness on interest rate swaps to which the
exceptional treatment is applied.
(7) Scope of cash and cash equivalents in consolidated statement of cash flows
Cash and cash equivalents include cash in hand, readily available deposits and short-term investments withmaturities of three months or less from the purchase date whose value is not subject to significant fluctuation risk.
(8) Other significant information for preparation of the consolidated financial statements
Accounting policy for consumption taxes
Transactions subject to consumption taxes are recorded at amounts exclusive of taxes.
Notes - Changes in accounting policies
Not applicable
Notes - New accounting standards to be applied“Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, issued by the Accounting Standards
Board of Japan on March 31, 2020)• “Implementation Guidance on Accounting Standard for Revenue Recognition” (ASBJ Guidance No. 30, issued
by the Accounting Standards Board of Japan on March 31, 2020)• “Implementation Guidance on Disclosures about Fair Value of Financial Instruments” (ASBJ Guidance No. 19,
issued by the Accounting Standards Board of Japan on March 31, 2020)(1) Overview
The International Accounting Standards Board (IASB) and US Financial Accounting Standards Board (FASB)
jointly developed comprehensive revenue recognition standards and issued “Revenue from Contracts with
Customers” in May 2014 (IASB’s IFRS 15 and FASB’s Topic 606). Considering that IFRS 15 shall apply to fiscal
years beginning on or after January 1, 2018, and Topic 606 shall apply to fiscal years beginning after December
15, 2017, the ASBJ developed a comprehensive accounting standard on revenue recognition and thus issued theaccounting standard together with the implementation guidance.
•

The ASBJ established the accounting standard on revenue recognition by following the basic policies in developing
it. The basic policies were: firstly, incorporating the core principle of IFRS 15 as the starting point from theperspective of facilitating comparability among financial statements, which is one of the benefits of ensuringconsistency with IFRS 15; secondly, adding alternative treatments, but to the extent not impairing comparability,
where consideration should be given to the practice having been used in Japan.
(2) Scheduled date of application
These ASBJ statement and guidance will be applied at the start of the fiscal year beginning on April 1, 2021.
(3) Effects of application of the accounting standard, etc.
The impact of the application of the Accounting Standard for Revenue Recognition on the consolidated financial
statements is currently under evaluation.
“Accounting Standard for Disclosure of Accounting Estimates” (ASBJ Statement No. 31, issued by AccountingStandards Board of Japan on March 31, 2020)(1) Overview
With regard to “sources of estimation uncertainty,” which is required to be disclosed in paragraph 125 ofInternational Accounting Standard (IAS) 1 “Presentation of Financial Statements” (hereinafter referred to as “IASTKK Report 2020 Financial Section171”) issued by the International Accounting Standards Board (IASB) in 2003, in order to oblige requests to consider
requiring that those sources of estimation uncertainty to be treated as information that is highly useful to users offinancial statements and disclosed in the form of note information in the Japanese GAAP as well, the ASBJ
developed and issued the Accounting Standard for Disclosure of Accounting Estimates (hereinafter referred to as
the “Accounting Standard”).
The ASBJ’s basic policy for the development of the Accounting Standard is to present the principle (disclosure
purpose) instead of enhancing individual notes, and place the onus on entities to determine the specific information
to be disclosed according to the disclosure purpose, while referring to the provision of paragraph 125 of IAS 1 in
the development.
(2) Scheduled date of application
This ASBJ statement will be applied at the end of the fiscal year ending March 31, 2021.
Notes - Additional information(Transaction of granting the Company’s own shares to Directors, etc. through a trust)
The Company has introduced a performance-linked share-based compensation using a trust for Directors (excluding
Directors who are Audit and Supervisory Committee Members and outside Directors), and Managing Officers who
are not Directors and other Executive Officers in a higher rank (hereinafter collectively referred to as “Directors, etc.”)from the second quarter, for the purpose of increasing the incentive to improve the Company’s medium- to long-term
performance and enhance the corporate value more than ever by clarifying the linkage between remuneration of
Directors, etc., and the Company’s medium- to long-term performance and stock value, and sharing profits and risks
resulting from the linkage with stock price between Directors, etc. and shareholders.
To the accounting treatment for this trust agreement, “Practical Solution on Transactions of Delivering the Company’s
Own Stock to Employees etc. through Trusts” (ASBJ PITF No. 30, issued on March 26, 2015) is appliedcorrespondingly.
(1) Outline of transaction
Money is entrusted to a trust designated by the Company (hereinafter referred to as the “Trust”), which acquires
shares of the Company. Points are given to each Director, etc. at the end of each fiscal year of the medium-termbusiness plan in accordance with the Share Delivery Regulations established by the Company’s Board of Directors,
and shares of the Company are delivered through the Trust in a certain period during the tenure of the Director, etc.
specified in the Regulations for the Provision of Shares for the Performance-linked Share-based Remuneration
Plan for officers, or at the time of retirement of the Director, etc. in the number corresponding to the number ofpoints accumulated by then.
(2) The Company’s shares remaining in the trust
Shares of the Company remaining in the trust have been recorded at the book value in the trust (excluding theamount of incidental costs) as treasury shares in net assets. The book value and number of these treasury shares atthe end of the current fiscal year were ¥149 million and 84,400 shares, respectively.
Notes - Consolidated balance sheet*1.

The following amounts have been restricted by a bank in return for its issuing a bank guarantee, which wasprovided by the Company:
Previous fiscal year
(As of March 31, 2019)
Cash and deposits*2.

¥2 million¥2 million

Accumulated depreciation of property, plant and equipment are as follows:
Previous fiscal year
(As of March 31, 2019)¥11,094 million

18

Current fiscal year
(As of March 31, 2020)

TKK Report 2020 Financial Section

Current fiscal year
(As of March 31, 2020)¥11,542 million

*3.

Assets pledged and liabilities secured

Assets pledged and liabilities secured as collateral are as follows:
Assets pledged
Previous fiscal year
(As of March 31, 2019)
Buildings and structures
Machinery, equipment and vehicles
Tools, furniture and fixtures
Land
Total

Current fiscal year
(As of March 31, 2020)¥336 million
0
0
5,458

[¥336 million][0][0][5,458]¥300 million
0
0
5,458

[¥300 million][0][0][5,458]

5,795[5,795]5,759[5,759]Liabilities secured
Previous fiscal year
(As of March 31, 2019)
Short-term borrowings
Long-term borrowings(including current portion of long-termborrowings)
Total

Current fiscal year
(As of March 31, 2020)¥1,670 million[¥1,670 million]¥1,670 million[¥1,670 million]

1,980[1,980]1,980[1,980]3,650[3,650]3,650[3,650]In the above table, figures in brackets present mortgages on factory foundation and the relevant debts. The amountsof land are after revaluation.
*4.

In accordance with the “Act on Revaluation of Land” (Act No. 34 promulgated on March 31, 1998), theCompany revalues its land for business use and, as for the valuation difference, records an amount equivalent
to tax relating to the valuation difference as “deferred tax liabilities for land revaluation” in the liabilities section
and an amount after deducting said amount as “revaluation reserve for land” in the net assets section.

Method of revaluation – The Company revalues the land by the calculation method where a value based on theassessed value of fixed asset tax set forth in Article 2, Item 3 and road rating set forth in Article 2, Item 4 of the “Orderfor Enforcement of the Act on Revaluation of Land” (Cabinet Order No. 119 promulgated on March 31, 1998) isreasonably adjusted.
Date of revaluation – March 31, 2002
Previous fiscal year
(As of March 31, 2019)
Difference between the year-end value ofrevaluated land and the book value after therevaluation¥(2,537) million

Current fiscal year
(As of March 31, 2020)¥(2,511) million

Notes - Consolidated statement of income and consolidated statement of comprehensive income*1.

Provision for loss on order received included in cost of sales
Previous fiscal year
(From April 1, 2018
to March 31, 2019)¥(56) million*2.

Current fiscal year
(From April 1, 2019
to March 31, 2020)¥133 million

Major components of selling, general and administrative expenses are as follows:
Previous fiscal year
(From April 1, 2018
to March 31, 2019)

Salaries and allowances
Bonuses
Provision for bonuses
Retirement benefit expenses
Provision of allowance for doubtful accounts¥1,702 million
289
147
147
(1)

Current fiscal year
(From April 1, 2019
to March 31, 2020)¥1,913 million
395
137
171
(9)

TKK Report 2020 Financial Section

19

*3.

Total of research and development expenses included in general and administrative expenses and manufacturingcosts for the current period
Previous fiscal year
(From April 1, 2018
to March 31, 2019)

Current fiscal year
(From April 1, 2019
to March 31, 2020)¥543 million*4.

Reclassification adjustments and tax effects relating to other comprehensive income
Previous fiscal year
(From April 1, 2018
to March 31, 2019)

Valuation difference on available-for-sale securities:
Amount recorded during the period
Reclassified amountCurrent fiscal year
(From April 1, 2019
to March 31, 2020)¥(555) million–¥64 million–

Pre-adjustment of tax effectTax effect amount

(555)
181

64
(19)

Valuation difference on available-for-salesecurities

(374)

44

Deferred gains or losses on hedges:
Amount recorded during the period
Reclassified amount

–
–

0
–

Pre-adjustment of tax effectTax effect amount

–
–

0
(0)

Deferred gains or losses on hedges–

0

Foreign currency translation adjustment:
Amount recorded during the period
Reclassified amount

(83)
–

30
–

Pre-adjustment of tax effectTax effect amount

(83)
–

30
–

Foreign currency translation adjustment

(83)

30

(90)
(30)

(164)
14

Pre-adjustment of tax effectTax effect amount

(120)
54

(149)
45

Remeasurements of defined benefit plans,
net of tax

(66)

(104)

Total other comprehensive income

(523)

(29)

Remeasurements of defined benefit plans, net oftax:
Amount recorded during the period
Reclassified amount20¥541 million

TKK Report 2020 Financial Section

Notes - Consolidated statement of changes in equity
Previous fiscal year (From April 1, 2018 to March 31, 2019)1.
Matters concerning class and total number of issued shares, and class and number of treasury shares
Number of shares at
beginning of period

Number of shares
increased in period

Number of shares
decreased in period(Thousands of shares)
Number of shares at
end of period

Issued shares
Common shares (Note 2)

9,703

–

380

9,323

Total

9,703

–

380

9,323

Common shares (Notes 1 and 2)

401

262

380

283

Treasury shares(Notes) 1.
2.

2.

Total
401
262
380
283
Total number of treasury shares of common shares increased by 262 thousand shares due to purchase of treasury
shares based on a resolution by the Board of Directors of 261 thousand shares and purchase of shares less than one
unit of 1 thousand shares.
Total number of issued shares decreased by 380 thousand shares and the number of treasury shares of commonshares decreased by 380 thousand shares due to cancellation of treasury shares based on a resolution by the Boardof Directors.

Matters concerning dividends(1) Dividends paid
Resolution

Class of shares

Total
dividends

Dividends per
share

Record date

Effective dateOrdinary General Meeting of
Shareholders on June 28,
2018

Common shares¥930 million¥100

March 31, 2018

June 29, 2018(2)

Dividends whose record dates are in the current fiscal year but whose effective dates fall in the next fiscal
year

Resolution

Class ofsharesTotal
dividends

Source ofdividends

Dividends per
share

Record date

Effective dateOrdinary General
Meeting of
Shareholders on June27, 2019

Commonshares¥903 million

Retainedearnings¥100

March 31, 2019

June 28, 2019

Current fiscal year (From April 1, 2019 to March 31, 2020)
1.
Matters concerning class and total number of issued shares, and class and number of treasury shares
Number of shares at
beginning of period

Number of shares
increased in period

Number of shares
decreased in period(Thousands of shares)
Number of shares at
end of period

Issued shares
Common shares

9,323

–

–

9,323

Total

9,323

–

–

9,323

Common shares (Notes 1, 2, and
3)

283

675

84

874

Treasury shares(Notes) 1.
2.

3.

Total
283
675
84
874
The number of treasury shares of common shares includes shares of the Company held by the benefit trust for officers(– thousand shares at beginning of period, 84 thousand shares at end of period).
Total number of treasury shares of common shares increased by 675 thousand shares because of an increase due toacquisition of treasury shares based on a resolution by the Board of Directors of 589 thousand shares, an increase
due to acquisition of shares of the Company by the trust of 84 thousand shares, and an increase due to purchase ofshares less than one unit of 1 thousand shares.
Total number of treasury shares of common shares decreased by 84 thousand shares due to a disposal of treasury
shares to the benefit trust for officers based on a resolution by the Board of Directors.

TKK Report 2020 Financial Section

21

2.

Matters concerning dividends(1) Dividends paid
Resolution

Class of shares

Total
dividends

Dividends per
share

Record date

Effective dateOrdinary General Meeting of
Shareholders on June 27,
2019

Common shares¥903 million¥100

March 31, 2019

June 28, 2019(2)

Dividends whose record dates are in the current fiscal year but whose effective dates fall in the next fiscal
yearClass ofsharesResolution

Total
dividends

Source ofdividends

Dividends per
share

Record date

Effective dateOrdinary General
Meeting ofCommonRetained¥853 million¥100
March 31, 2020
June 29, 2020
Shareholders on Junesharesearnings
26, 2020(Note) The total amount of dividends based on a resolution at the Ordinary General Meeting of Shareholders on June 26, 2020
includes dividends on shares of the Company held by the benefit trust for officers of ¥8 million.

Notes - Consolidated statement of cash flows*1.

Reconciliation of ending balance of cash and cash equivalents with account balances per balance sheet
Previous fiscal year
(From April 1, 2018
to March 31, 2019)

Current fiscal year
(From April 1, 2019
to March 31, 2020)

Cash and deposits
Time deposits with maturity over 3 months
Restricted deposits¥7,666 million
(54)
(2)

¥11,507 million
(102)
(2)

Cash and cash equivalents

7,609

11,402

Notes - Leases(Borrower)
Operating lease transactions
Future lease payments under non-cancelable operating leases
Within 1 year
Over 1 year
Total

Previous fiscal year
(As of March 31, 2019)

Current fiscal year
(As of March 31, 2020)¥20 million¥27 million

57

65

77

93

Previous fiscal year
(As of March 31, 2019)

Current fiscal year
(As of March 31, 2020)¥1,526 million¥925 million(Lender)
Finance lease transactions(1) The components of investments in leases
Current assets

Lease payments receivable
Estimated residual value

22

86

65

Amount equivalent to interest income

(113)

(53)

Investments in leases

1,499

937

TKK Report 2020 Financial Section

(2)Amounts expected to be collected on lease payments receivable of investments in leases after consolidatedbalance sheet dateCurrent assets(Millions of yen)Previous fiscal year (As of March 31, 2019)
Within 1 year
Investments in leases

600

Over 1 year
to 2 years

Over 2 years
to 3 years

Over 3 years
to 4 years

Over 4 years
to 5 years

Over 5 years

401

332

160

31

–
(Millions of yen)

Current fiscal year (As of March 31, 2020)
Within 1 year
Investments in leases

401

Over 1 year
to 2 years

Over 2 years
to 3 years

Over 3 years
to 4 years

Over 4 years
to 5 years

Over 5 years

332

159

31

–

–

TKK Report 2020 Financial Section

23

Notes - Financial instruments
1.
Status of financial instruments(1) Policy on treatment of financial instruments
The Group raises funds necessary to run its business smoothly by borrowing from banks. In the case where theGroup has temporary surplus funds, it invests them only in safe financial instruments.
The Group uses derivative transactions to hedge various risks described in (2) in accordance with the “Rules on
Handling of Derivative Transactions” established by the Company and has a policy not to enter into any speculativetransaction.
(2) Content and risks of financial instruments and risk management system therefor
The Group’s notes and accounts receivable - trade are subject to credit risk of its customers, and its certain
receivables denominated in foreign currencies are subject to exchange rate fluctuation risk. The Group mitigatesthe credit risk of its customers by periodically confirming whether there is any overdue receivable using an aging
schedule and other documents and the exchange rate fluctuation risk such as by borrowing in foreign currencies asneeded.
The Company’s securities are subject to credit risk of its investees, but the Company invests surplus funds in safe
financial instruments with high ratings through prescribed internal procedures.
The Group’s investment securities are subject to credit risk of its investees and market price fluctuation risk. They
are equity securities of listed companies with which the Group has business relationships, most of which are
categorized as available-for-sale securities, and the Group periodically ascertains the fair value thereof.
The Group’s notes and accounts payable - trade and accrued expenses are subject to liquidity risk, and its certain
payables denominated in foreign currencies are subject to exchange rate fluctuation risk. The Group mitigates theliquidity risk by periodically preparing a schedule of cash receipts and disbursements and other documents and theexchange rate fluctuation risk by forward exchange contracts and other means as needed.
Of borrowings, short-term borrowings are primarily for daily business transactions, and long-term borrowings areprimarily for temporary advances on large-scale projects. Variable-rate borrowings are subject to interest rate
fluctuation risk, and the Group uses interest rate swaps as hedging instruments for respective contracts for most of
the long-term borrowings in order to hedge the fluctuation risk of the interest rates to be paid and fix interest
expenses. The Group limits interest rate swaps to those to which the exceptional treatment can be applied and omits
assessment of hedge effectiveness thereon. The Group mitigates the liquidity risk by periodically preparing aschedule of cash receipts and disbursements and other documents.
The Group executes and manages derivative transactions in accordance with the Company’s Rules on Handling of
Derivative Transactions and, when using derivatives, enters into transactions with financial institutions with highratings to mitigate credit risk. Please see “Accounting policy for hedging” of “Disclosure of accounting policies”
in “Significant accounting policies for preparation of the consolidated financial statements” described previously
for the hedging instruments, hedging policy, method of assessing the hedging effectiveness and other information
on hedge accounting.
(3) Supplementary explanation concerning fair values of financial instruments
Fair values of financial instruments comprise values based on market prices and reasonably measured values where
market prices are unavailable. As several variable factors are incorporated in calculating the relevant fair value,
the resulting amount may vary depending on the different preconditions employed. In addition, the contract
amounts of derivative transactions, mentioned in “Notes - Derivatives” in Notes, should not be considered
indicative of the sizes of the market risks involved in the derivative transactions.

24

TKK Report 2020 Financial Section

2.
Fair values of financial instruments
Carrying amounts on the consolidated balance sheet, fair values and differences therebetween of the financial
instruments as of March 31, 2019 and 2020, are as shown below. However, financial instruments whose fair values
are deemed to be extremely difficult to determine are not included therein (Note 2).
Previous fiscal year (As of March 31, 2019)(Millions of yen)
Carrying amount on
the consolidatedbalance sheet(1) Cash and deposits(2) Notes and accounts receivable - trade
Allowance for doubtful accounts (*)

Difference

7,666
23,267–

7,666–

23,26723,267

–

–
7,414

–
7,414

–
–

Total assets

38,34738,347–

Notes and accounts payable - trade
Short-term borrowings
Accrued expenses
Long-term borrowings(including within 1 year)

1,570
7,849
7,534

1,570
7,849
7,534

–
–
–

5,141

5,232

90

Total liabilities

22,09522,186

90

–
–

–
–

–
–

(3) Securities(4) Investment securities
(1)
(2)
(3)
(4)

Fair value

Derivatives(1)
Those not qualifying for hedge accounting(2)
Those qualifying for hedge accounting

Total derivatives–––(*) Amounts of allowance for doubtful accounts separately included in notes and accounts receivable - trade are excluded.

Current fiscal year (As of March 31, 2020)(Millions of yen)
Carrying amount on
the consolidatedbalance sheet(1) Cash and deposits(2) Notes and accounts receivable - trade
Allowance for doubtful accounts (*)

Difference

11,507
15,413(0)

11,507–

15,413

15,413

–

–
6,728

–
6,728

–
–

Total assets

33,64933,649–Notes and accounts payable - trade
Short-term borrowings
Accrued expenses
Long-term borrowings(including within 1 year)

919
7,849
4,763

919
7,849
4,763

–
–
–

5,107

5,197

90

Total liabilities

18,63818,729

90

–
0

–
0

–
–

(3) Securities(4) Investment securities
(1)
(2)
(3)
(4)

Fair value

Derivatives(1)
Those not qualifying for hedge accounting(2)
Those qualifying for hedge accounting

Total derivatives
00–(*) Amounts of allowance for doubtful accounts separately included in notes and accounts receivable - trade are excluded.

TKK Report 2020 Financial Section

25

(Notes) 1.

Calculation method of fair values of financial instruments and matters concerning securities and derivatives
Assets(1) Cash and deposits and (2) Notes and accounts receivable - trade
Because these accounts are settled in a short period, their fair values approximate their book values. Therefore,
the fair values are based on the book values.
(3) Securities
Because this account has a short-term maturity, its fair value approximates its book value. Therefore, the fairvalue is based on the book value.
(4) Investment securities
Fair value of this account is based on the price on exchanges, the price provided by counterparty financial
institutions or other prices. Please refer to “Notes - Securities” for the notes.
Liabilities(1) Notes and accounts payable - trade, (2) Short-term borrowings and (3) Accrued expenses
Because these accounts are settled in a short period, their fair values approximate their book values. Therefore,
the fair values are based on the book values.
(4) Long-term borrowings (including within 1 year)
Fair value of this account is determined by discounting the total amount of principal and interest at the interest
rate available for a similar borrowing. Fair values of long-term borrowings with variable rates, to which the
exceptional treatment for the interest rate swap is applied, are determined by discounting the total amount ofprincipal and interest accounted for with the relevant interest rate swaps at the reasonably estimated interest
rates applied to similar borrowings.
Derivatives
Please refer to “Notes - Derivatives” in Notes.

2.
3.

“Assets (4) Investment securities” do not include unlisted equity securities (carrying amount on the consolidatedbalance sheet of ¥1,284 million) because there is no market price and their future cash flows cannot be estimatedand accordingly it is extremely difficult to ascertain their fair values.
Projected redemption amounts for monetary claims and securities with maturities after the consolidated balance
sheet datePrevious fiscal year (As of March 31, 2019)(Millions of yen)

Within 1 year

Over 1 year
to 5 years

Over 5 years
to 10 years

Over 10 years

Cash
Notes and accounts receivable - trade
Securities
Investment securities
Held-to-maturity bonds
Available-for-sale securities

7,630
23,112
–

–
155
–

–
–
–

–
–
–

–
–

–
–

–
–

–
–

Total

30,742

155––

Within 1 year

Over 1 year
to 5 years

Over 5 years
to 10 years

Over 10 years

Cash
Notes and accounts receivable - trade
Securities
Investment securities
Held-to-maturity bonds
Available-for-sale securities

11,455
15,413
–

–
–
–

–
–
–

–
–
–

–
–

–
–

–
–

–
–

Total

26,868–––Current fiscal year (As of March 31, 2020)(Millions of yen)26

TKK Report 2020 Financial Section

4.

Scheduled repayment amounts of long-term borrowings and other interest-bearing liabilities
Previous fiscal year (As of March 31, 2019)
Over 1 year
to 2 years

Over 2 years
to 3 years

Over 3 years
to 4 years

619

8

–

Over 1 year
to 2 years

Over 2 years
to 3 years

Over 3 years
to 4 years

8

–

1,700

Long-term borrowings
Current fiscal year (As of March 31, 2020)

Long-term borrowings(Millions of yen)Over 4 years
to 5 years
1,700(Millions of yen)Over 4 years
to 5 years
2,480

Notes - Securities
1.

Held-to-maturity bonds
Previous fiscal year (As of March 31, 2019)
Not applicable
Current fiscal year (As of March 31, 2020)
Not applicableTKK Report 2020 Financial Section

27

2.

Available-for-sale securities (securities classified as other securities under Japanese GAAP)
Previous fiscal year (As of March 31, 2019)
Type(1) Stocks(Millions of yen)
Carrying amount on
the consolidatedbalance sheet

Acquisition cost

Difference

5,731

1,880

3,850

(i) Government
bonds andmunicipal bonds,
etc.

–

–

–

(ii) Corporate
bonds

–

–

–

(iii) Other

–

–

–

(3) Other

–

–

–

5,731

1,880

3,850

1,682

1,937

(254)

(i) Government
bonds andmunicipal bonds,
etc.

–

–

–

(ii) Corporate
bonds

–

–

–

(iii) Other

–

–

–

(3) Other

–

–

–

1,682

1,937

(254)

(2) Bonds

Securities for which the carrying
amount on the consolidated balance
sheet exceeds the acquisition cost

Subtotal(1) Stocks(2) Bonds
Securities for which the carrying
amount on the consolidated balance
sheet does not exceed the acquisition
cost

Subtotal(Note)

28

Total
7,414
3,818
3,595
“Available-for-sale securities” in the above table do not include unlisted equity securities (carrying amount on the
consolidated balance sheet of ¥1,257 million) because there is no market value and accordingly it is extremely difficult
to ascertain their fair values.

TKK Report 2020 Financial Section

Current fiscal year (As of March 31, 2020)(Millions of yen)
Carrying amount on
the consolidatedbalance sheet

Type(1) Stocks

Acquisition cost

Difference

5,828

2,000

3,828

(i) Government
bonds andmunicipal bonds,
etc.

–

–

–

(ii) Corporate
bonds

–

–

–

(iii) Other

–

–

–

(3) Other

–

–

–

5,828

2,000

3,828

899

1,067

(168)

(i) Government
bonds andmunicipal bonds,
etc.

–

–

–

(ii) Corporate
bonds

–

–

–

(iii) Other

–

–

–

(2) Bonds

Securities for which the carrying
amount on the consolidated balance
sheet exceeds the acquisition cost

Subtotal(1) Stocks(2) Bonds
Securities for which the carrying
amount on the consolidated balance
sheet does not exceed the acquisition
cost(3) Other
Subtotal(Note)

3.

–

–

–

899

1,067

(168)

Total
6,728
3,068
3,659
“Available-for-sale securities” in the above table do not include unlisted equity securities (carrying amount on the
consolidated balance sheet of ¥1,284 million) because there is no market value and accordingly it is extremely difficult
to ascertain their fair values.

Available-for-sale securities that were sold
Previous fiscal year (From April 1, 2018 to March 31, 2019)
Type(1) Shares(2) Bonds(i) Government bonds and municipal bonds,
etc.
(ii) Corporate bonds(iii) Other(3) Other
Total

Sales amount74

Total gain on sales
74(Millions of yen)
Total loss on sales
–

–

–

–

–
–
–

–
–
–

–
–
–

74

74

–

Current fiscal year (From April 1, 2019 to March 31, 2020)
Type(1) Shares(2) Bonds(i) Government bonds and municipal bonds,
etc.
(ii) Corporate bonds(iii) Other(3) Other
Total

Sales amount878

Total gain on sales
578(Millions of yen)
Total loss on sales
–

–

–

–

–
–
–

–
–
–

–
–
–

878

578

–

TKK Report 2020 Financial Section29

4. Securities subject to the recognition of impairment loss
In the current fiscal year, impairment loss of ¥451 million (shares in available-for-sale securities: ¥451 million)
was recognized on securities.
In the treatment for impairment loss, impairment loss is recognized in principle when the fair market value atthe period-end decreased by 50% or more compared with the acquisition cost, and impairment loss is recognized
to the extent of the amount considered necessary in light of materiality of the amount, recoverability and otherfactors when the fair market value at the period-end decreased by approximately 30 to 50%.
Notes - Derivatives
1. Derivative transactions to which hedge accounting is not applied
Not applicable
2. Derivative transactions to which hedge accounting is applied(1) Currencies
Previous fiscal year (As of March 31, 2019)
Not applicable
Current fiscal year (As of March 31, 2020)(Millions of yen)Type of derivativetransaction, etc.

Classification

Principal hedged
items

Contract
amountPortion ofcontract
amount over
1 yearForward exchange
contract
Allocation method
for forward
exchange contract

Buy contract
Euro

Accounts
payable - trade

Total

627

–

627

–

Fair value

Fair value
calculation
methodFair value iscalculated
based on theprice provided
bycounterparty
financial
628 institutions orother prices.
628(2) Interest rates
Previous fiscal year (As of March 31, 2019)(Millions of yen)Classification

Type of derivativetransaction, etc.

Principal hedged
items

Exceptional
treatment ofinterest rate swaps

Interest rate swap
transactions
Receive variable,
pay fixed

Long-term
borrowings(Note)

30

Contract
amount3,680

Portion ofcontract
amount over
1 year
3,200

Fair value(Note)

Fair value
calculation
method(Note)

The fair value of interest rate swaps that are accounted for using exceptional treatment is included in that of corresponding
long-term borrowings, as those interest rate swaps are treated as an adjustment to long-term borrowings as hedged items.

TKK Report 2020 Financial Section

Current fiscal year (As of March 31, 2020)

Classification

Type of derivativetransaction, etc.

Principal hedged
items

Exceptional
treatment ofinterest rate swaps

Interest rate swap
transactions
Receive variable,
pay fixed

Long-term
borrowings(Note)(Millions of yen)Contract
amount3,200

Portion ofcontract
amount over
1 year2,700

Fair value(Note)

Fair value
calculation
method(Note)

The fair value of interest rate swaps that are accounted for using exceptional treatment is included in that of corresponding
long-term borrowings, as those interest rate swaps are treated as an adjustment to long-term borrowings as hedged items.

TKK Report 2020 Financial Section31Notes - Retirement benefits
1. Summary of retirement benefit plans adopted
The Company and certain consolidated subsidiaries have defined benefit corporate pension plans as defined benefit
plans, and certain consolidated subsidiaries have a small and medium sized enterprise retirement allowancecooperative plan and lump-sum retirement plans.
In addition, the Company and certain consolidated subsidiaries have defined contribution corporate pension plans.
The Company and certain consolidated subsidiaries participate in Nihon Sangyo Kikai Kougyo Kigyonenkin Kikin(pension fund of Japan industrial machinery manufacturers). For this fund, since the amount of pension plan assets
corresponding to contributions by the respective companies cannot be reasonably calculated, the fund is accounted
for similar to defined contribution plans.
2. Defined benefit plans(1) Reconciliation between beginning balance and ending balance of retirement benefit obligations
Previous fiscal year
(From April 1, 2018
to March 31, 2019)
Beginning balance of retirement benefit
obligations
Service cost
Interest expenses
Unrecognized net actuarial gain or loss
Retirement benefits paid
Past service cost
Other
Ending balance of retirement benefit
obligations(2)¥3,493 million¥3,428 million

187
16
6
(301)
35
(9)

193
16
27
(318)
–
2

3,428

3,350

Reconciliation between beginning balance and ending balance of pension plan assets

Beginning balance of pension plan assets
Expected return on plan assets
Unrecognized net actuarial gain or loss
Amount of employer contribution
Retirement benefits paid
Other
Ending balance of pension plan assets

32

Current fiscal year
(From April 1, 2019
to March 31, 2020)

TKK Report 2020 Financial Section

Previous fiscal year
(From April 1, 2018
to March 31, 2019)¥3,567 million
42
(61)
178
(310)
(12)
3,403

Current fiscal year
(From April 1, 2019
to March 31, 2020)¥3,403 million
42
(136)
240
(317)
3
3,235

(3)

Retirement benefit obligations and pension plan assets at the end of the fiscal year and reconciliation ofretirement benefit liability and retirement benefit asset on consolidated balance sheet
Previous fiscal year
(From April 1, 2018
to March 31, 2019)
Retirement benefit obligations under
funded system
Pension plan assets
Retirement benefit obligations under
unfunded system
Net amount of assets and liabilities
stated in the consolidated balance sheet
Retirement benefit liability
Retirement benefit asset
Net amount of assets and liabilities
stated in the consolidated balance sheet(4)

Current fiscal year
(From April 1, 2019
to March 31, 2020)¥3,426 million¥3,350 million(3,403)(3,235)

23

114

2

–

25

114

358
(332)

152
(38)

25

114

Retirement benefit expenses and components thereofService cost
Interest expenses
Expected return on plan assets
Amortization of net actuarial gain or
loss
Amortization of past service cost
Retirement benefit expenses pertaining
to defined benefit plans

Previous fiscal year
(From April 1, 2018
to March 31, 2019)¥187 million
16(42)Current fiscal year
(From April 1, 2019
to March 31, 2020)¥193 million
16
(42)

(31)

15

35

–

165

183

(5)

Remeasurements of defined benefit plans, net of tax on consolidated statement of income and comprehensive
income
The components of remeasurements of defined benefit plans, net of tax (before tax effects deduction) are as follows:
Previous fiscal year
(From April 1, 2018
to March 31, 2019)
Past service cost
Actuarial gains and losses
Total

Current fiscal year
(From April 1, 2019
to March 31, 2020)¥– million(120)¥– million
(149)

(120)

(149)

(6) Remeasurements of defined benefit plans on consolidated balance sheet
The components of remeasurements of defined benefit plans (before tax effects deduction) are as follows:
Previous fiscal year
(From April 1, 2018
to March 31, 2019)
Unrecognized past service cost
Unrecognized net actuarial gain or loss
Total

Current fiscal year
(From April 1, 2019
to March 31, 2020)¥– million
94¥– million
232

94

232

TKK Report 2020 Financial Section33

(7) Pension plan assets(i) Major components of pension plan assets
Ratio of major components for total pension plan assets is as follows:
Previous fiscal year
(From April 1, 2018
to March 31, 2019)

Current fiscal year
(From April 1, 2019
to March 31, 2020)

28%
32
31
9

30%
27
33
11

100

100

Bonds
SharesGeneral account
Other
Total

(ii) Method of establishing expected long-term rates of return on plan assets
In order to determine the expected long-term rates of return on plan assets, the current and forecast distributionof plan assets and the current and expected long-term rates of return from the diverse assets that comprise theplan assets are taken into consideration.
(8) Matters relating to the basis for actuarial calculations
Main basis for actuarial calculations
Previous fiscal year
(As of March 31, 2019)

Current fiscal year
(As of March 31, 2020)

0.25%

0.25%

1.00%

1.00%

Discount rate
Expected long-term rates of return on pension plan
assets3. Defined contribution plans
The required contribution from the Company and its consolidated subsidiaries into the defined contribution pension
plans was ¥81 million in the previous fiscal year and ¥83 million in the current fiscal year.
4. Multi-employer plan
The required contribution amount to the corporate pension fund plan under the multi-employer plan, which isaccounted for in the same manner as a defined contribution plan, was ¥93 million in the previous fiscal year and ¥95
million in the current fiscal year.
(1)

Funded status of multi-employer planPrevious fiscal year
(As of March 31, 2018)

Current fiscal year
(As of March 31, 2019)

Plan assets
Sum of actuarial obligations calculated forfinance status of pension plan and minimum
reserve¥10,534 million¥11,138 million

21,965

21,406

Net amount(11,431)(10,268)(2) Group’s proportion of total contributions to planPrevious fiscal year 7.37%(From April 1, 2018 to March 31, 2019)
Current fiscal year 7.51%(From April 1, 2019 to March 31, 2020)(3) Supplementary explanation
Major factors for the net amount in (1) above are the balance of past service liabilities (¥11,851 million as of March
31, 2018 and ¥10,889 million as of March 31, 2019) and surplus amount (¥420 million as of March 31, 2018 and¥622 million as of March 31, 2019) for pension financing calculation.
The principal and interest of past service liabilities in this plan are amortized equally over 10 years and 6 months, and
the Group recorded special contributions applied to such amortization (¥66 million as of March 31, 2018 and ¥67
million as of March 31, 2019) as expenses in the consolidated financial statements.
The proportions in (2) above are not consistent with the proportions actually funded by the Group.

34

TKK Report 2020 Financial Section

Notes - Share options, etc.
Not applicable
Notes - Tax effect accounting
1. Significant components of deferred tax assets and liabilities

Deferred tax assets
Tax loss carry-forward (Note)
Accrued business tax
Retirement benefit liability
Provision for bonuses
Allowance for doubtful accounts
Provision for loss on order received
Loss on valuation of investment securities
Loss on valuation of investments in capital
Impairment loss
Depreciation
Asset retirement obligations
Other
Deferred tax assets subtotal
Valuation reserve for tax loss carry-forwards (Note)
Valuation reserve for the total of deductible temporary
differences, etc.

Previous fiscal year
(As of March 31, 2019)

Current fiscal year
(As of March 31, 2020)¥400 million
52
109
69
95
37
246
112
137
62
68
247

¥206 million
46
114
81
94
74
246
181
136
39
72
227

1,640
(121)

1,520
(206)

(715)

(784)

(837)

(991)

802

528

1,095
970

1,095
989

876

871

Valuation reserve subtotal
Total deferred tax assets
Deferred tax liabilities
Revaluation reserve for land
Valuation difference on available-for-sale securities
Reserve for tax purpose reduction entry of non-current
assets
Other

159

143

Total deferred tax liabilities
3,101(Note)
Amounts of tax loss carry-forwards and related deferred tax assets by carry-forward period

3,100Previous fiscal year (As of March 31, 2019)(Millions of yen)
Within 1
year

Over 1 year
to 2 years

Over 2
years to 3
years

Over 3
years to 4
years

Over 4
years to 5
years

Over 5years

Tax loss carry-forwards
(*)

–

–

–

90

31

278

400

Valuation reserve

–

–

–

(90)

(31)

–

(121)

Deferred tax assets

–

–

–

–

–

278

278

Total

TKK Report 2020 Financial Section

35

Current fiscal year (As of March 31, 2020)(Millions of yen)
Within 1
year

Over 1 year
to 2 years

Over 2
years to 3
years

Over 3
years to 4
years

Over 4
years to 5
years

Over 5years

Tax loss carry-forwards
(*)

–

–

84

30

91

–

206

Valuation reserve

–

–

(84)

(30)

(91)

–

(206)

Deferred tax assets

–

–

–

–

–

–

–

(*)

Total

Tax loss carry-forwards represent the amount multiplied by the statutory effective tax rate.

2. Main components causing significant differences between the statutory effective tax rate and the actual effective
tax rate after application of tax effect accounting
Previous fiscal year
(As of March 31, 2019)

Current fiscal year
(As of March 31, 2020)

Statutory effective tax rate
Adjustments
Increase/decrease in valuation reserve
Expenses not deductible for income tax purposes, such asentertainment expenses
Income not included for income tax purposes, such as dividends
received
Per capita levy of inhabitant taxes
Effect of differences in tax rates applicable to subsidiaries fromtax rate applicable to the Company
Retained earnings of overseas subsidiaries
Other

30.62%

30.62%

0.70

4.14

1.75

2.72

(0.91)(0.52)

2.57

1.18

2.39

1.10

(1.66)
0.47

0.22(1.07)

Actual effective tax rate

35.93

38.40

Notes - Business combinations, etc.
Transactions, etc. under common control
Absorption-type merger of a subsidiary
The Company merged Toyo Kanetsu Solutions K.K., a wholly owned subsidiary of the Company, by an absorptiontype merger as of April 1, 2019.
1. Outline of transaction(1) Name of parties to the business combination and their line of business
Surviving entity by absorption
Toyo Kanetsu K.K.
Line of business
Manufacturing and sales of various kind of storage
tanks
Absorbed entity by absorption
Line of businessToyo Kanetsu Solutions K.K.
Manufacturing, sales and maintenance of material
handling system equipment(2) Date of the business combination
April 1, 2019(3) Legal form of the business combination
Absorption-type merger, in which Toyo Kanetsu K.K. is the surviving company and Toyo Kanetsu Solutions
K.K. is the absorbed company.
(4) Name of the company after the business combination
Toyo Kanetsu K.K.
(5) Other matters concerning the outline of transaction
The Company decided to carry out an absorption-type merger of Toyo Kanetsu Solutions K.K. in order tostrive for further increases of the entire group’s corporate value by sharing intellectual property from theGroup’s primary businesses, the Plant & Machinery Business and the Logistics Solutions Business,

36

TKK Report 2020 Financial Section

appropriately allocating human resources, and effectively using shared assets.
2. Overview of accounting treatment conducted
The acquisition was accounted for as a transaction under common control based on “Accounting Standard forBusiness Combinations” (ASBJ Statement No. 21, issued on September 13, 2013), and “Guidance on AccountingStandard for Business Combinations and Accounting Standard for Business Divestitures” (ASBJ Guidance No.
10, issued on September 13, 2013).
Notes - Asset retirement obligations
Of asset retirement obligations, items recorded on the consolidated balance sheeta) Outline of asset retirement obligations
The asset retirement obligations of the Group are obligations in certain facilities for rent under the Ordinanceon Prevention of Asbestos Hazards.
b) Calculation method for determining asset retirement obligation amountThe amount of asset retirement obligations was calculated assuming an estimated period of use of 31 years fromacquisition, and using a discount rate from 2.2%.
c) Increase (decrease) in total asset retirement obligations
Previous fiscal year
(From April 1, 2018
to March 31, 2019)

Current fiscal year
(From April 1, 2019
to March 31, 2020)

Beginning balance
Increase due to change in estimates
Decrease due to settlement of asset retirement obligations¥321 million–(97)¥224 million
14(3)

Ending balance

224

235

TKK Report 2020 Financial Section

37

Notes - Real estate for lease, etc.
The Company and certain subsidiaries rent out a space such as in their business places as well as land mainly forrental housing and buildings in the Tokyo metropolitan area and other areas. Rental profit related to the real estate forrent, etc. for the previous fiscal year was ¥458 million (rent income is recorded in net sales, and rent expenses arerecorded in cost of sales). Rental profit related to the real estate for rent, etc. for the current fiscal year was ¥268
million (rent income is recorded in net sales, and rent expenses are recorded in cost of sales).
Carrying amounts on the consolidated balance sheet, changes during period for the previous and current fiscal years
and fair values of the real estate for rent, etc. are as follows:(Millions of yen)
Current fiscal year
(From April 1, 2019
to March 31, 2020)

Previous fiscal year
(From April 1, 2018
to March 31, 2019)
Carrying amount on the consolidatedbalance sheet
Balance at
beginning of period

5,424

4,615

Increase (decrease)during period

(809)

203

Balance at end of
period

4,615

4,818

Fair value at end of period
3,089
3,267
(Notes) 1. Carrying amount on the consolidated balance sheet is calculated by subtracting accumulated depreciation andimpairment loss from acquisition cost.
2. The increase (decrease) during period for the previous fiscal year primarily consist of a decrease in rentable space(¥439 million), a decrease due to sales of real estate (¥335 million) and a decrease due to depreciation (¥34 million).
The increase (decrease) during period for the current fiscal year primarily consist of an increase in rentable space(¥230 million) and a decrease due to depreciation (¥27 million).
3. Fair value of property whose amount has significance at the end of the period is an amount based on a value
investigation report by an external real property appraiser, and that of other property whose amount has little
significance is an amount based on an index which is believed to reflect a market value appropriately.

Notes - Segment information, etc.
[Segment information]
1. Description of reportable segments
The reportable segments of the Company are components for which discrete financial information is available andwhose operating results are regularly reviewed by the Board of Directors of the Company to make decisions about
resource allocation and assess their performance.
The Group develops comprehensive business strategies and engages in business activities for respective products
and service of divisions by product and service in the Company.
Accordingly, the Company is comprised of segments by product and service, and its reportable segments consistof “Logistics Solutions Business” and “Plant & Machinery Business.”“Logistics Solutions Business” develops, designs, builds and executes construction works of, material handlingsystems focusing on sorting, picking and conveying systems and provides maintenance services and otheroperations for these systems. “Plant & Machinery Business” designs, builds, and executes construction works of,storage tanks for LNG, LPG, crude oil and other gas and liquid and provides maintenance services and otheroperations for these tanks.
2. Method of measurements of sales, profit (loss), asset, liability, and other items for each reportable segment
The accounting procedures for the reporting operating segments are nearly the same as those stated in “Significant
accounting policies for preparation of the consolidated financial statements.” Profits of the reportable segments are
based on operating profit. Intersegment transactions are based on actual transaction amounts.

38

TKK Report 2020 Financial Section

3. Disclosure of sales, profit (loss), asset, and other items for each reportable segment
Previous fiscal year (From April 1, 2018 to March 31, 2019)
Reportable segments

Sales
Sales to externalcustomers
Transactions withother segments
Total

Other
(Note)(Millions of yen)

Logistics
Solutions
Business

Plant &
MachineryBusiness

29,274

8,421

37,696

7,492–

45,188

–

–

–

745

(745)

–
45,188Total

Adjustment

Total

29,274

8,421

37,696

8,237

(745)

Segment profit (loss)

1,907(1,221)

686

1,108

(389)

1,406

Segment assets

31,326

10,40541,732

13,1299,894

64,756

352

153

505

179

43

728

549

107

657

289

4

950

Other items
Depreciation
Increase in property,
plant and equipment,
and intangible assets(Note)“Other” includes the building construction business, manufacturing and sales of industrial facilities and equipment, realestate rental operations, leasing operations, inspection, measurement and analysis of asbestos, etc. and other operations.

Current fiscal year (From April 1, 2019 to March 31, 2020)(Millions of yen)

Reportable segments

Sales
Sales to externalcustomers
Transactions withother segments
Total

Other
(Note)

Logistics
Solutions
Business

Plant &
MachineryBusiness

28,8879,950

38,837

7,680–

46,518

–

–

–

133

(133)

–
46,518Total

Adjustment

Total

28,8879,950

38,837

7,813

(133)

Segment profit (loss)

2,812

(305)

2,506

880

(795)

2,591

Segment assets

28,005

12,26240,267

12,6898,028

60,985

411

90

502

198

17

718

796

101

898

459

27

1,385

Other items
Depreciation
Increase in property,
plant and equipment,
and intangible assets(Note)“Other” includes the building construction business, manufacturing and sales of industrial facilities and equipment, realestate rental operations, leasing operations, inspection, measurement and analysis of asbestos, etc. and other operations.

TKK Report 2020 Financial Section39

4. Differences between total amounts for reportable segments and amounts in the consolidated financial statements
and main details of these differences (matters relating to difference adjustments)
Profit(Millions of yen)
Current fiscal year

Previous fiscal year

Reportable segments total
Profit of “other”
Corporate expenses (Note)
Other adjustments

686
1,108
(389)
–

2,506
880
(795)
–

Operating profit in the consolidated
1,406
2,591
financial statements(Note) Corporate expenses mainly represent expenses related to administrative divisions such as the general affairs division,
which are not attributable to the reportable segments.
(Millions of yen)
Asset
Reportable segments total
Assets of “other”
Corporate assets (Note)
Other adjustments

Previous fiscal year

Current fiscal year
41,732
13,1299,955(60)

40,267
12,6898,052(23)

Total assets in the consolidated financial
64,75660,985statements(Note) Corporate assets mainly represent assets related to divisions managing cash and deposits, investment securities and otherassets of the Company, which are not attributable to the reportable segments.

40

TKK Report 2020 Financial Section

[Information associated with reportable segments]
Previous fiscal year (From April 1, 2018 to March 31, 2019)
1. Information for each product and service(Millions of yen)
Material handlingsystemStorage tank, etc.
equipment, etc.
Sales to external customers

29,274Maintenanceservices ofstorage tanks

2,168

Other

6,253

7,492

2. Information about geographical area
(1) Sales
Japan(Note)

Total(Millions of yen)Southeast Asia

Total

Other

42,312
2,700
176
Sales are classified by country or region on the basis of construction sites.

45,188(2) Property, plant and equipment
Japan45,188(Millions of yen)Southeast Asia

15,102

Oceania

698

Total
44

15,845

3. Information for each of main customers
This information has been omitted since sales to a specific customer account for less than 10% of net sales in the
consolidated statement of income and comprehensive income.
Current fiscal year (From April 1, 2019 to March 31, 2020)
1. Information for each product and service(Millions of yen)
Material handlingsystemStorage tank, etc.
equipment, etc.
Sales to external customers

28,887

Maintenanceservices ofstorage tanks

2,288

Other

7,661

2. Information about geographical area
(1) Sales
Japan(Note)

Total

7,680

(Millions of yen)Southeast Asia

Total

Other

44,1942,284
39
Sales are classified by country or region on the basis of construction sites.

(2) Property, plant and equipment
Japan

46,518(Millions of yen)Southeast Asia

15,69046,518709

Oceania

Total
42

16,442

3. Information for each of main customers
This information has been omitted since sales to a specific customer account for less than 10% of net sales in the
consolidated statement of income and comprehensive income.

TKK Report 2020 Financial Section

41

[Disclosure of impairment loss on non-current assets for each reportable segment]
Previous fiscal year (From April 1, 2018 to March 31, 2019)
Not applicable
Current fiscal year (From April 1, 2019 to March 31, 2020)
Not applicable[Amortization and unamortized balance of goodwill for each reportable segment]
Previous fiscal year (From April 1, 2018 to March 31, 2019)
Not applicable
Current fiscal year (From April 1, 2019 to March 31, 2020)
Not applicable[Gain on bargain purchase for each reportable segment]
Previous fiscal year (From April 1, 2018 to March 31, 2019)As a result of making Kankyo Research Institute Inc. a subsidiary, the Company recorded gain on negative goodwillof ¥87 million as extraordinary income.
This gain on negative goodwill is not related to any specific reportable segment, and is included in “other.”
Current fiscal year (From April 1, 2019 to March 31, 2020)
Not applicable[Information associated with related parties]
Subsidiaries and others
1.
Related party transactions
Not applicable2.

42Notes concerning the parent company or important affiliated companies
Not applicableTKK Report 2020 Financial Section

Notes - Per share information

Net assets per share
Basic earnings per share(Notes) 1.
2.

3.

Previous fiscal year
(From April 1, 2018
to March 31, 2019)

Current fiscal year
(From April 1, 2019
to March 31, 2020)¥3,897.68¥4,095.51¥112.80¥195.87

The amount of diluted earnings per share is not provided because there are no potential shares.
In the calculation of “net assets per share,” shares of the Company held by the benefit trust for officers are included
in treasury shares deducted from the total number of shares issued at the end of the fiscal year (– thousand shares in
the previous fiscal year, 84 thousand shares in the current fiscal year).
In addition, in the calculation of “basic earnings per share” and “diluted earnings per share,” such shares are included
in treasury shares deducted in the calculation of the average number of shares during the period (– thousand sharesin the previous fiscal year, 51 thousand shares in the current fiscal year).
The basis for calculation for basic earnings per share is as follows:
Previous fiscal year
Current fiscal year
(From April 1, 2018
(From April 1, 2019
to March 31, 2019)
to March 31, 2020)

Profit attributable to owners of parent
Profit not relating to common shareholders
Profit attributable to owners of parent pertaining tocommon shares
Average number of shares during the period¥1,025 million¥1,717 million

–

–

1,025

1,717

9,092
thousand shares

8,770
thousand shares

Notes - Significant events after reporting period
Not applicableTKK Report 2020 Financial Section

43

(v)

Annexed consolidated detailed schedules

Annexed consolidated detailed schedule of corporate bonds
Not applicable
Annexed consolidated detailed schedule of borrowings
Beginning balance

Classification(Millions of yen)

Short-term borrowings

Ending balance(Millions of yen)

Average interest
rate (%)

Repayment due¥7,849¥7,849

0.379

–

514

619

0.916

–

Long-term borrowings (excluding
current portion)

4,627

4,488

0.793

Between 2021 and 2026

Total

12,99012,956–

Current portion of long-termborrowings(Notes) 1.
2.

–

In calculating the average interest rate, the weighted average interest rate on the ending balance of borrowings, isshown.
Repayment of long-term borrowings (excluding the current portion) scheduled within five years after the balance
sheet date is as follows:
Over 1 year
to 2 years

Classification
Long-term borrowings

Over 2 years
to 3 years¥8 million

Over 3 years
to 4 years¥– million¥1,700 million

Over 4 years
to 5 years¥2,480 million

Annexed consolidated detailed schedule of asset retirement obligations
A schedule of asset retirement obligations has been omitted since matters to be stated in the schedule are stated as
notes prescribed in Article 15-23 of the Ordinance on Terminology, Forms, and Preparation Methods of Consolidated
Financial Statements.

(2) Other information
Quarterly information for the current fiscal year
First quarter(Cumulative)(Cumulative period)
Net sales(From April 1, 2019
to June 30, 2019)

Third quarter(Cumulative)(From April 1, 2019
(From April 1, 2019
to September 30, 2019) to December 31, 2019)

Current fiscal year

(From April 1, 2019 toMarch 31, 2020)(Millions of yen)

7,882

20,501

32,39446,518

Profit before income taxes(Millions of yen)

328

1,123

2,043

2,788

Profit attributable to owners ofparent(Millions of yen)

205

682

1,258

1,717

Basic earnings per share

22.86

76.03

141.89195.87First quarter

Second quarter

Third quarter

Fourth quarter

22.86

53.27

66.19

54.42

(Yen)

(Accounting period)
Basic earnings per share

44

Second quarter(Cumulative)

TKK Report 2020 Financial Section(Yen)

(TRANSLATION)
INDEPENDENT AUDITOR’S REPORT
June 26, 2020
To the Board of Directors of
Toyo Kanetsu K.K.
GYOSEI & CO.
Tokyo Office
Designated Partner
Engagement Partner
Certified Public Accountant

Takayuki Nakagawa (seal)

Designated Partner
Engagement Partner
Certified Public Accountant

Akira Mishima(seal)

Audit of Financial Statements
Audit Opinion
Pursuant to the first paragraph of Article 193-2 of the Financial Instruments and Exchange Act of Japan, we haveaudited the accompanying consolidated financial statements of Toyo Kanetsu K.K. (the “Company”), which comprisethe consolidated balance sheet as of March 31, 2020, and the consolidated statements of income and comprehensive
income, the consolidated statement of changes in equity, the consolidated statement of cash flows for the fiscal year
from April 1, 2019 to March 31, 2020, and significant accounting policies for preparation of the consolidated financial
statements, other notes, and annexed consolidated detailed schedules, all expressed in Japanese yen.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, theconsolidated financial position of the Company and its subsidiaries (the “Group”) as of March 31, 2020, and theconsolidated results of their operations and their cash flows for the year then ended in conformity with accounting
principles generally accepted in Japan.
Basis for Audit Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities underthose standards are further described in the “Auditor’s Responsibilities for the Audit of the Consolidated Financial
Statements” section of our report. We are independent of the Group in accordance with the ethical requirements thatare relevant to our audit in Japan, and we have fulfilled our other ethical responsibilities as auditors. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management and the Audit and Supervisory Committee for the Consolidated Financial
Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements inaccordance with accounting principles generally accepted in Japan, and for designing and operating such internal
control as management determines is necessary to enable the preparation and fair presentation of consolidated
financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing whether it is appropriate
to prepare the consolidated financial statements with the assumption of the Group’s ability to continue as a going
concern, and for disclosing matters related to going concern, as applicable in accordance with accounting principles
generally accepted in Japan.
The Audit and Supervisory Committee is responsible for overseeing the Directors’ execution of duties relating todesigning and operating the Group’s financial reporting process.

TKK Report 2020 Financial Section

45

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our responsibilities are to obtain reasonable assurance about whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes ouropinion on the consolidated financial statements based on our audit from an independent point of view. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
In accordance with auditing standards generally accepted in Japan, we exercise professional judgment and maintainprofessional skepticism throughout the audit. We also:•

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due tofraud or error, and design and perform audit procedures responsive to those risks. Selecting audit procedures to be
applied is at the discretion of the auditor. Obtain audit evidence that is sufficient and appropriate to provide a basis
for our opinion.

•

Consider, in making those risk assessments, internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, while the purpose of the audit of the consolidated financial
statements is not expressing an opinion on the effectiveness of the Group’s internal control.

•

Evaluate the appropriateness of accounting policies used by management and their method of application, as wellas the reasonableness of accounting estimates made by management and related notes thereto.

•

Conclude on the appropriateness of management’s use of the going concern basis for preparing the consolidated
financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related toevents or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If weconclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related
notes to the consolidated financial statements or, if such notes are inadequate, to express a qualified opinion withexceptions on the consolidated financial statements. Our conclusions are based on the audit evidence obtained up
to the date of our auditor’s report. However, future events or conditions may cause the Company to cease tocontinue as a going concern.

•

Evaluate whether the overall presentation of the consolidated financial statements and the notes thereto are inaccordance with accounting principles generally accepted in Japan, as well as the overall presentation, structure
and content of the consolidated financial statements, including the notes thereto, and whether the consolidated
financial statements represent the underlying transactions and accounting events in a manner that achieves fairpresentation.

•

Obtain sufficient appropriate audit evidence regarding the financial information of the Group to express an opinion
on the consolidated financial statements. We are responsible for the direction, supervision and performance of theaudit of the consolidated financial statements. We remain solely responsible for our audit opinion.

We communicate with the Audit and Supervisory Committee regarding the planned scope and timing of the audit,
significant audit findings, including any significant deficiencies in internal control that we identify during our audit,
and other matters required by auditing standards.
We also provide the Audit and Supervisory Committee with a statement that we have complied with relevant ethicalrequirements in Japan regarding independence, and communicate with it all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards in order to eliminate or
reduce obstruction factors.
Audit of Internal Control
Audit Opinion
Pursuant to the second paragraph of Article 193-2 of the Financial Instruments and Exchange Act of Japan, we haveaudited management’s report on internal control over financial reporting of the Company as of March 31, 2020.
In our opinion, the management’s report on internal control referred to above, which represents that the internal
control over financial reporting of the Company as of March 31, 2020 was effective, presents fairly, in all material
respects, the results of the assessment of internal control over financial reporting in accordance with assessment
standards for internal control over financial reporting generally accepted in Japan.

46

TKK Report 2020 Financial Section

Basis for Audit Opinion
We conducted our internal control audit in accordance with auditing standards for internal control over financial
reporting generally accepted in Japan. Our responsibilities under the auditing standards for internal control overfinancial reporting are further described in the “Auditor’s Responsibilities for the Audit of the Report on Internal
Control” section of our report. We are independent of the Group in accordance with the ethical requirements that are
relevant to our audit in Japan, and we have fulfilled our other ethical responsibilities as auditors. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management and the Audit and Supervisory Committee for the Report on Internal Control
Management is responsible for designing and operating effective internal control over financial reporting, and for the
preparation and fair presentation of the report on internal control in accordance with assessment standards for internal
control over financial reporting generally accepted in Japan.
The Audit and Supervisory Committee is responsible for overseeing and verifying the design and operation ofeffective internal control over financial reporting.
There is a possibility that misstatements may not be completely prevented or detected by internal control over financial
reporting.
Auditor’s Responsibilities for the Audit of the Report on Internal Control
Our responsibilities are to obtain reasonable assurance about whether the report on internal control is free frommaterial misstatement, and to issue a report on audit of internal control that includes our opinion on the report oninternal control based on our internal control audit from an independent point of view.
In accordance with auditing standards for internal control over financial reporting generally accepted in Japan, we
exercise professional judgment and maintain professional skepticism throughout the audit. We also:•

Perform audit procedures in order to obtain audit evidence regarding the evaluation results for internal control
over financial reporting in the report on internal control. The audit procedures for internal control auditing selected
and applied depend on the auditor’s judgment, including the significance of effects on the reliability of financial
reporting.

•

Evaluate disclosures on the scope, procedures and results of the assessment of internal control over financial
reporting made by management, as well as evaluate the overall presentation of the report on internal control.

•

Obtain audit evidence that is sufficient and appropriate regarding the results of the assessment of internal control
over financial reporting in the report on internal control. We are responsible for the direction, supervision andperformance of the audit of the report on internal control. We remain solely responsible for our audit opinion.

We communicate with the Audit and Supervisory Committee regarding the planned scope and timing of the internal
control audit, results of the internal control audit, significant identified deficiencies in internal control that should be
disclosed, results of their correction, and other matters required by auditing standards for internal control.
We also provide the Audit and Supervisory Committee with a statement that we have complied with relevant ethicalrequirements in Japan regarding independence, and communicate with it all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards in order to eliminate or
reduce obstruction factors.
Conflicts of Interest
Our firm and its engagement partners do not have any interest in the Group which is required to be disclosed pursuant
to the provisions of the Certified Public Accountants Act of Japan.
The above represents a translation, for convenience only, of the original report issued in the Japanese language.

TKK Report 2020 Financial Section

47

Corporate Data
Date of Establishment

May 16, 1941

Common Stock¥18,580 million

Authorized Shares

297,000,000

Capital Stock Issued

9,323,074

Number of Shareholders

9,309

Security Traded

Tokyo Stock Exchange, First Section

Transfer Agent and Registrar

The Mitsubishi UFJ Trust and Banking Corporation
4-5, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8212, Japan

Annual Meeting

The annual meeting of shareholders is normally held in June in Tokyo, Japan

Directory
Head Office11-1, Minamisuna 2-chome, Koto-ku, Tokyo 136-8666, Japan
Tel: +81-3-5857-3333 Fax: +81-3-5857-1952
URL: https://www.toyokanetsu.co.jp/global/

Osaka Sales Office
1-9-2, Senrioka-Higashi, Settsu, Osaka 566-0011, Japan
Tel: +81-72-645-2520 Fax: +81-72-645-2532

Logistics Solutions Business
Tel: +81-3-5857-3126 Fax: +81-3-5857-3185

Plant & Machinery Business
Tel: +81-3-5857-3109 Fax: +81-3-5857-3173

2 Tsukiji, Kisarazu, Chiba 292-0835, Japan
Tel: +81-438-36-7161 Fax: +81-438-36-8211

Domestic Subsidiaries

Overseas Subsidiaries

Toyo Kanetsu Builtec K.K.

PT Toyo Kanetsu Indonesia

11-1, Minamisuna 2-chome, Koto-ku, Tokyo 136-8666, Japan
Tel: +81-3-3640-5164 Fax: +81-3-6800-3156
URL: http://www.web-tkb.com(Jakarta Head Office)Midplaza Building 1, 8th Floor, Jl. Jend. Sudirman Kav. 10-11,
Jakarta 10220, Indonesia
Tel: +62-21-570-7805 / 7739 Fax: +62-21-570-3950
URL: http://www.pttki.com/

Toyo Service System K.K.
11-1, Minamisuna 2-chome, Koto-ku, Tokyo 136-8666, Japan
Tel: +81-3-5857-3200 Fax: +81-3-5857-3171
URL: https://www.toyoservice.co.jp

Toyo Koken K.K.
11-1, Minamisuna 2-chome, Koto-ku, Tokyo 136-8666, Japan
Tel: +81-3-5857-3161 Fax: +81-3-5857-3198
URL: https://www.toyokoken.co.jp/en

Kankyo Research Institute Inc.
6-22, Okadomachi, Hachioji-shi, Tokyo 192-0054, Japan
Tel: +81-42-627-2810 Fax: +81-42-627-2820
URL: http://www.kankyo-research.co.jp/

48

Chiba Plant

TKK Report 2020 Financial Section

Toyo Kanetsu Singapore Pte. Ltd.
16 Ayer Rajah Crescent, #03-04 Tempco Technominium,
3rd Floor, Singapore 139965
Tel: +65-6776-2393 Fax: +65-6773-1703

Toyo Kanetsu (Malaysia) Sdn. Bhd.
Sublot 51, 1st Floor, Medan Jaya Commercial Centre,
97000 Bintulu, Sarawak, Malaysia
Tel: +60-86-338-122 Fax: +60-86-338-123

Contact

TOYO KANETSU K.K.
Corporate Planning Department
Corporate Division
TEL: +81-3-5857-3333 FAX: +81-3-5857-3170
E-MAIL: tkkreport@toyokanetsu.co.jp
URL: https://www.toyokanetsu.co.jp/global/