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

Summary of Consolidated Financial Results
for the Six Months Ended September 30, 2023
(Based on Japanese GAAP)
November 13, 2023
Company name:TOYO KANETSU K.K.
Stock exchange listing: Tokyo
Stock code:
Representative:

6369
URL https://www.toyokanetsu.co.jp
President and Representative Director
Takashi Owada

Inquiries:

Senior Executive Officer
Division Manager

Takeshi Yonehara

Corporate Division
Scheduled date to file Quarterly Securities Report:

November 14, 2023

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:–Yes

Holding of quarterly financial results meeting:

Yes

TEL

03-5857-3333(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2023 (from April 1, 2023 to September 30, 2023)(1) Consolidated operating results (cumulative)

Six months ended September 30, 2023
Six months ended September 30, 2022

Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
23,1406.8
551 (34.1)
877 (31.6)
402 (45.5)
21,665 (29.3)
837 (48.1)
1,282 (32.7)
738 (35.4)
Earnings per share

Diluted earnings per share

Yen
51.24
91.07

Six months ended September 30, 2023
Six months ended September 30, 2022

Yen––(2) Consolidated financial position
Total assets
As of September 30, 2023
As of March 31, 2023

Net assets

Millions of yen
65,55264,001Equity ratio

Millions of yen
36,08538,087

Net assets per share
%
55.0
59.5

Yen
4,665.34
4,708.95

2. Cash dividends
Annual dividends per share

Year ended March 31, 2023
Year ending March 31, 2024

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
––

Yen
0.00
0.00

Yen–

Yen
147.00Yen
147.00–150.00150.00Year ending March 31, 2024 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
54,000
14.0
3,300
32.2
3,500
20.8
2,400
0.9
296.761

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

NoNo

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2023

9,323,074 shares As of March 31, 2023

9,323,074 shares

1,589,241 shares As of March 31, 2023

1,235,672 shares

Number of treasury shares at the end of the period
As of September 30, 2023

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2023

7,860,820 shares Six months ended September 30, 2022

28,108,926 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)As of March 31, 2023

As of September 30, 2023

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

6,989
23,64910,275
21,20535
19935Work in process
Raw materials and supplies

1,117
4,787

1,249
5,087

Other
Allowance for doubtful accounts

1,156(20)

1,106
(19)

Total current assets

37,73438,950

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

4,206
568

4,429
617

Tools, furniture and fixtures, netLand

434
10,092504
10,092

543
58

759
46

15,903

16,449Intangible assets
Investments and other assets

877

634

Investment securities
Deferred tax assets

8,059
240

8,143
219

Retirement benefit asset
Other514
894

444
931

Allowance for doubtful accounts

(221)

(221)

Investments in leases
Merchandise and finished goods

Non-current assets
Property, plant and equipment

Construction in progress
Other, net
Total property, plant and equipment

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

3

9,486

9,517

26,267

26,60264,001

65,552

(Millions of yen)
As of March 31, 2023

As of September 30, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade

1,243

1,200

Short-term borrowings
Current portion of long-term borrowings

5,357
1,700

10,857
1,700

Accrued expenses
Income taxes payable

4,715
908

4,173
254

Contract liabilities
Provision for bonuses

2,138
423

1,361
390

Provision for loss on orders received
Provision for warranties for completed construction

45
202

39
122

Other

696

817

17,43020,916

Bonds payable
Long-term borrowings

1,000
3,380

1,000
3,458

Deferred tax liabilities
Deferred tax liabilities for land revaluation

1,730
1,095

1,679
1,095

Retirement benefit liability
Asset retirement obligations

392
800

409
801

Other84

104

Total current liabilities
Non-current liabilities

Total non-current liabilities

8,483

8,549

25,91429,466

Share capital
Capital surplus

18,5801,273

18,580
1,273

Retained earnings
Treasury shares

18,135(3,200)17,341(4,401)

Total shareholders' equity

34,78932,792

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities3,374

3,443

Deferred gains or losses on hedges
Revaluation reserve for land

(6)
684

6684

Foreign currency translation adjustment
Remeasurements of defined benefit plans(899)
140(964)
117

Total accumulated other comprehensive income

3,293

3,288

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

44

4

38,08736,08564,001

65,552

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)(Millions of yen)Six months ended
September 30, 2022

Six months ended
September 30, 2023

Net sales

21,66523,140

Cost of sales

16,81018,433Gross profit

4,855

4,706

Selling, general and administrative expenses

4,017

4,154

837

551

Operating profit
Non-operating income
Interest income

21

Dividend income
Foreign exchange gains

185
225

156
169

Gain on sale of scraps
Other

1956

1334

Total non-operating income

489

375

37

37

7

12

Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Other

4449

1,282877

27449–4327493Loss on sale of non-current assets
Loss on valuation of investment securities

3960–
7Impairment losses
Loss on disaster––

323
517

Total extraordinary incomeExtraordinary losses

Other
Total extraordinary losses
Profit before income taxes
Income taxes - current

03

101

851

1,208

518

389

180

Income taxes - deferred

80

(65)

Total income taxes

469

115

Profit739

403

Profit attributable toProfit attributable to owners of parent

738

402

00

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

1,126276813Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

(82)
(16)

(65)
(22)

Profit attributable to non-controlling interests
Other comprehensive income

1,055

(5)

Comprehensive income

Total other comprehensive income

1,794

397

Comprehensive income attributable toComprehensive income attributable to owners of parent

1,794

397

00

Comprehensive income attributable to non-controlling interests

5Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Six months ended

Six months endedSeptember 30, 2022

September 30, 2023

1,208518

Depreciation
Amortization of goodwill

363
0363
0

Increase (decrease) in allowance for doubtful accounts
Decrease (increase) in retirement benefit asset

(4)
38(1)
45

Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for loss on orders received

(9)
112
(6)

Increase (decrease) in provision for warranties for completed
construction

(57)

(80)

Interest and dividend income
Interest expenses(188)
37(157)37

Loss on disaster
Foreign exchange losses (gains)–(246)

517(165)Loss (gain) on valuation of investment securities
Loss (gain) on sale of investment securities

60–7(43)

Loss on retirement of non-current assets
Loss (gain) on sale of non-current assets

0122(449)

Impairment losses
Decrease in trade receivables and contract assets

–
748

323
2,522

Decrease (increase) in investments in leases
Decrease (increase) in inventories

118(1,589)

25(438)Decrease (increase) in advance payments to suppliers
Increase (decrease) in trade payables(220)(1,852)

(17)
(597)

962(961)

(776)
(4)

(1,568)1,629Interest and dividends received
Interest paid

188
(38)

157
(35)

Payments associated with disaster loss
Income taxes paid–(711)

(393)
(808)

(2,129)549

Increase (decrease) in contract liabilities
Other, net
Subtotal

Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits

(51)

(51)

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

48
(576)

48
(935)

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

216
(54)

449
(0)

Proceeds from sale and redemption of investment securities
Proceeds from purchase of shares of subsidiaries resulting in

2154–15change in scope of consolidation
Other, net
Net cash provided by (used in) investing activities

69(15)

(387)

(435)

(Millions of yen)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Proceeds from disposal of treasury shares
Purchase of treasury shares
Dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

Six months ended

Six months ended

September 30, 2022

September 30, 2023

2,000

5,500–38

18–(301)(1,191)(1,201)(1,192)546

3,124105

44

Net increase (decrease) in cash and cash equivalents(1,865)

3,282

Cash and cash equivalents at beginning of period

8,654

6,921

Cash and cash equivalents at end of period

6,789

10,2037