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

Summary of Consolidated Financial Results
for the Year Ended March 31, 2020
(Based on Japanese GAAP)May 25, 2020
Company name:TOYO KANETSU K.K.

Stock exchange listing: Tokyo
Stock code:
6369
Representative:
Inquiries:

URL

https://www.toyokanetsu.co.jp

President and Representative Director
Executive Officer

Toru Yanagawa
Takeshi YoneharaScheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 26, 2020
June 26, 2020

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

June 29, 2020
Yes

Holding of 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 year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended March 31, 2020
46,518
2.9
2,591
84.3
2,970
67.7
1,717
67.5
Year ended March 31, 201945,1888.2
1,406(37.9)
1,771(33.1)
1,025(56.6)

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%–
4.9
4.7
5.6
–
2.9
2.9
3.1

Diluted earnings pershare

Yen195.87
112.80Year ended March 31, 2020
Year ended March 31, 2019(2) Consolidated financial position

Total assets
As of March 31, 2020
As of March 31, 2019

Net assets

Equity ratio

Millions of yen
60,98564,756

Millions of yen
34,60235,234

Cash flows fromoperating activities
Millions of yen
6,955(6,698)Cash flows frominvesting activities
Millions of yen(812)(1,315)

Net assets per share%
56.7
54.4

Yen
4,095.51
3,897.68(3) Consolidated cash flows

Year ended March 31, 2020
Year ended March 31, 2019

Cash flows from
Cash and cash equivalentsat end of period
financing activities
Millions of yen
Millions of yen(2,351)
11,4023,249
7,609

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

Year ended March 31, 2019Year ended March 31, 2020
Year ending March 31, 2021
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%%

––

0.00
0.00

––

100.00100.00100.00100.00903
853

88.751.1

2.6
2.5

–

0.00

–

100.00100.00153.8

3. Forecast of consolidated financial results for the year ending March 31, 2021 (from April 1, 2020 to March 31, 2021)
Net sales
Full year

Millions of yen
48,100Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%Yen
3.4
2,160 (16.7)
2,520 (15.2)
1,630(5.1)
185.84

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2020(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

NoNo

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

NoNo(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2020

9,323,074 shares As of March 31, 2019

9,323,074 shares

874,440 shares As of March 31, 2019283,723 shares

Number of treasury shares at the end of the period
As of March 31, 2020
Average number of shares during the period
Year ended March 31, 2020

8,770,801 shares Year ended March 31, 20192

9,092,866 shares

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2019

As of March 31, 2020

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

7,666
23,267

11,507
15,413

Investments in leases
Merchandise and finished goods

1,499
38937
27

Work in process
Raw materials and supplies

4,252
1,670

5,179
1,977

534
(22)

435
(16)

38,90635,461

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

3,321
1,021

4,218
1,016

Tools, furniture and fixtures, net
Land

310
10,556364
10,568

622
12253
20

Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

Construction in progress
Other, net

15,845

16,442Intangible assets
Investments and other assets

Total property, plant and equipment

357

381

Investment securities
Deferred tax assets

8,671
63

8,013
45

Retirement benefit asset
Other332
868

38889

Allowance for doubtful accounts

(289)

(286)

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

3

9,646

8,699

25,85025,52364,75660,985

(Millions of yen)
As of March 31, 2019

As of March 31, 2020

Liabilities
Current liabilities
Notes and accounts payable - trade

1,570

919

Short-term borrowings
Current portion of long-term borrowings

7,849
514

7,849619

Accrued expenses
Income taxes payable

7,534
659

4,763
553

Advances received
Provision for bonuses

2,020
227

2,790
267

121
555

241
389

Provision for loss on order received
Provision for warranties for completed construction
Other

870

455

21,922

18,848Long-term borrowings
Deferred tax liabilities

4,627
1,267

4,488
1,520

Deferred tax liabilities for land revaluation
Retirement benefit liability

1,095
358

1,095
152

224
27

235
40

Total current liabilities
Non-current liabilities

Asset retirement obligations
Other
Total non-current liabilities

7,599

7,534

29,522

26,382

Shareholders' equity
Share capital

18,58018,580Capital surplus
Retained earnings

1,273
14,5491,273
15,224

Total liabilities
Net assets

Treasury shares(1,077)(2,355)

Total shareholders' equity

33,32432,722

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

2,621
–

2,666
0

Revaluation reserve for land
Foreign currency translation adjustment

106(759)

106(729)

Accumulated other comprehensive income

Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

4(61)

(165)

1,907

1,878

1

135,234

34,60264,75660,985

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

Fiscal year ended

March 31, 2019

March 31, 2020

Net sales
Cost of sales

45,18838,19446,51837,355Gross profit

6,994

9,162

Selling, general and administrative expenses

5,588

6,570

Operating profit

1,406

2,591

Interest income
Dividend income

12302

9277Foreign exchange gains
Other–
136

5160

Total non-operating income

452

452

49

59

19
17–
14

Non-operating income

Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses

87

74

1,771

2,970

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

36
74

0578

Gain on bargain purchase
Disaster donations

87
46––

Ordinary profit
Extraordinary income

Other

1–

246579Loss on valuation of investment securities
Loss on disaster

237
159

673
39

Other

2048

Total extraordinary incomeExtraordinary losses

Total extraordinary losses

418

761

1,599

2,788

Income taxes - current

748

759

Income taxes - deferred(173)

311

Profit before income taxes

Total income taxes

574

1,070

Profit

1,025

1,717

Profit attributable toProfit attributable to owners of parent

1,025

1,717

(0)

(0)

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

(374)
–440

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

(83)
(66)

30(104)

Total other comprehensive income(523)(29)

Comprehensive income

501

1,688

Comprehensive income attributable toComprehensive income attributable to owners of parent

501

1,688

Comprehensive income attributable to non-controlling interests

(0)

(0)

Loss attributable to non-controlling interests
Other comprehensive income

5Consolidated statements of changes in equity
Fiscal year ended March 31, 2019
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

18,580Retained earnings

1,273

Treasury shares

15,750Total shareholders'equity(1,397)

34,207

Changes during periodDividends of surplus

(930)

(930)

Profit attributable to owners ofparent

1,025

1,025

2626

Reversal of revaluation
reserve for land
Purchase of treasury shares
Cancellation of treasury shares(1,323)(1,004)(1,004)

1,323–

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period––(1,201)

319

(882)

18,5801,273

14,549(1,077)33,324

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Revaluation
reserve for land

2,995

133

Foreigncurrencytranslation
adjustment(676)

Remeasurementsof defined
benefit plans

5

Total
accumulated Non-controlling
Total net assetsinterests
othercomprehensive
income2,458

036,666

Changes during period
Dividends of surplus(930)

Profit attributable to owners ofparent

1,025

Reversal of revaluation
reserve for land

26

Purchase of treasury shares(1,004)

Cancellation of treasury shares
Net changes in items otherthan shareholders' equity–(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

135,234

6

Fiscal year ended March 31, 2020
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

18,580Retained earnings

1,273

Total shareholders'equity

Treasury shares

14,549(1,077)33,324

Changes during period
Dividends of surplus

(903)

(903)

Profit attributable to owners ofparent

1,717

1,717

Purchase of treasury shares
Disposal of treasury shares(1,416)(1,416)138–(138)Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

–

–

675

(1,277)(602)

18,5801,273

15,224(2,355)32,722

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

2,621

Deferred
gains orlosses onhedges–

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

106

(759)

Total
Remeasurements

accumulatedof defined benefit

otherplanscomprehensive

Noncontrollinginterests

Total net
assetsincome

(61)

1,907

135,234Changes during period
Dividends of surplus(903)

Profit attributable to owners ofparent

1,717

Purchase of treasury shares(1,416)

Disposal of treasury shares–Net changes in items otherthan shareholders' equity

440–

Total changes during period

440–

30

Balance at end of period

2,666

0106(729)

730

(104)

(29)(0)

(29)

(104)

(29)

(0)

(631)

(165)

1,878

134,602

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year endedMarch 31, 2019

March 31, 2020
1,599

2,788

Depreciation
Gain on bargain purchase728(87)

718–

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement benefit liability

(3)
(13)

(9)
(195)

Decrease (increase) in retirement benefit asset
Increase (decrease) in provision for loss on order received

4(62)

139
120

Increase (decrease) in provision for warranties for completedconstruction

(25)

(165)

Interest and dividend income
Interest expenses(315)
49(287)
59

Disaster donations
Loss on disaster

(46)
159

–
39

Foreign exchange losses (gains)
Loss (gain) on valuation of investment securities

72237

(17)
673

Loss (gain) on sales of investment securities
Loss (gain) on sales of non-current assets

(74)
(31)

(578)
68(13,749)

(18)
7,865

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

272(419)562(1,221)

Decrease (increase) in advance payments - trade
Increase (decrease) in trade payables

95
3,714

1(3,428)

Increase (decrease) in advances received
Other, net

1,621
(134)

769(287)

Subtotal

Loss on retirement of non-current assets
Decrease (increase) in trade receivables(6,400)7,533Interest and dividends received
Interest paid

314
(50)

287
(67)

Disaster donations received
Payments associated with disaster loss

46(159)–(24)

Income taxes paid
Net cash provided by (used in) operating activities

(449)

(772)

(6,698)

6,955

–
–

(166)
118

500
(1,080)–(1,424)375(717)

4(250)

74878(427)–

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 scopeof consolidation
Other, net
Net cash provided by (used in) investing activities

8(40)27(1,315)(812)

(Millions of yen)

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

Fiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020
3,217–

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

2,000(38)480(514)Purchase of treasury shares
Proceeds from disposal of treasury shares(1,004)–(1,566)
149

Proceeds from share issuance to non-controlling shareholders
Dividends paid

1(926)

0(901)Net cash provided by (used in) financing activities

3,249(2,351)

Effect of exchange rate change on cash and cash equivalents(45)

1Net increase (decrease) in cash and cash equivalents(4,810)3,793

Cash and cash equivalents at beginning of period

12,4207,609

Cash and cash equivalents at end of period

7,609

11,4029