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 Three Months Ended June 30, 2018
(Based on Japanese GAAP)
August 9, 2018
Company name:TOYO KANETSU K.K.

Stock exchange listing: Tokyo
Stock code:
6369

URL

http://www.toyokanetsu.co.jp

Representative:

President and Representative Director
Executive Officer, General Manager ofToru Yanagawa

Inquiries:

Financial Planning Department, Corporate
Management Division

Takeshi Yonehara

Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

August 10, 2018–

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:

Yes
NoTEL

03-5857-3333(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended June 30, 2018 (from April 1, 2018 to June 30, 2018)(1) Consolidated operating results (cumulative)
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%Three months ended June 30, 2018
7,603 (17.0)(417)–(148)–
78 (88.9)
Three months ended June 30, 2017
9,162
13.5
728 (38.9)
941 (23.4)
711(5.0)
Earnings per share

Diluted earnings per share

YenYenThree months ended June 30, 2018
8.55–
Three months ended June 30, 2017
74.82–(Note) The Company conducted a share consolidation at a ratio of 10 shares of common shares to 1 share, effective on October 1,2017.
Accordingly, the earnings per share is calculated based on the assumption that the share consolidation had been conducted at the beginningof the previous fiscal year.
(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen
Millions of yen%
Yen
As of June 30, 2018
53,56034,92365.2
3,853.99
As of March 31, 2018
55,81836,66665.7
3,941.68(Note) “Partial revision of Tax Effect Accounting” (Corporate Accounting Standard No.28, February 16, 2018) had been reflected from the year
ending March 31, 2019, the consolidated financial position of previous fiscal year is shown as revision reflected amount.
2. Cash dividends
Annual dividends per share

Year ended March 31, 2018Year ending March 31, 2019

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
0.00

Yen–

Yen
100.00Total

Year ending March 31, 2019 (Forecast)
0.00–
100.00(Note) The Company conducted a share consolidation at a ratio of 10 shares of common shares to 1 share, effective on October 1,2017.

Yen
100.00100.00

3. Forecast of consolidated financial results for the year ending March 31, 2019 (from April 1, 2018 to March 31, 2019)

Net sales

Full year

Millions of yen
52,500Percentages 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
25.7
3,020
33.3
3,340
26.2
2,210
(6.4)
235.061

4. Notes(1) Changes in significant subsidiaries during the three months ended June 30, 2018(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

NoNo(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:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements:

No(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2018

9,323,074 shares As of March 31, 2018

9,703,074 shares

261,658 shares As of March 31, 2018

401,043 shares

Number of treasury shares at the end of the period
As of June 30, 2018

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended June 30, 2018
9,212,286 shares Three months ended June 30, 2017
9,504,333 shares(Note) The Company conducted a share consolidation at a ratio of 10 shares of common shares to 1 share, effective on October 1,2017.
Accordingly, the average number of shares during the period is calculated based on the assumption that the share consolidation had been
conducted at the beginning of the previous fiscal year.

2Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2018

As of June 30, 2018

AssetsCurrent assets
Cash and deposits

12,421

9,701

9,387
1,781

8,659
1,787

500
40500
38

3,819
1,640

4,204
1,721

494
(21)

732
(7)

30,06427,337

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

3,457
1,152

3,479
1,100

Tools, furniture and fixtures, net
Land

282
10,707332
10,7641100261
1

Notes and accounts receivable - trade
Lease investment assets
Securities
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

Construction in progress
Other, net

15,71015,939Intangible assets
Investments and other assets

Total property, plant and equipment

368

414

Investment securities
Deferred tax assets

8,730588,888
68

398
778

367
837

Net defined benefit asset
OtherAllowance for doubtful accounts

(292)

(293)

Total investments and other assets

9,674

9,868

25,753

26,22355,81853,560Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2018

As of June 30, 2018

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable

2,033
4,604

1,876
4,629

Current portion of long-term loans payable
Accrued expenses

15
3,380

–3,192

Income taxes payable
Advances received

316
417130882

Provision for bonuses
Provision for loss on order received

242
183

–279

Provision for warranties for completed construction
Other

580
924

594
751

Total current liabilities

12,69812,336

Non-current liabilities
Long-term loans payable

3,080

3,165

1,591
1,107

1,425
1,107

Net defined benefit liability
Asset retirement obligations

325
321

329
244

Other

2727

Deferred tax liabilities
Deferred tax liabilities for land revaluation

Total non-current liabilities

6,453

6,300

19,151

18,637

Capital stock
Capital surplus

18,5801,27318,580
1,273

Retained earnings
Treasury shares

15,750(1,397)

13,575(991)

Total shareholders' equity

34,20732,436

Total liabilities
Net assets
Shareholders' equity

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

2,995

3,104

Revaluation reserve for land
Foreign currency translation adjustment

133(676)

133(753)

Remeasurements of defined benefit plans

50

2,458

2,485

00

36,66634,92355,81853,560Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)(Millions of yen)Three months ended

Three months ended

June 30, 2017

June 30, 2018

Net sales
Cost of sales

9,162
7,095

7,603
6,681

Gross profit

2,067

921

Selling, general and administrative expenses

1,338

1,339

728(417)

Interest income
Dividend income

2176

2205

Foreign exchange gains
Other744

2356

Total non-operating income

23128881197

Operating profit (loss)
Non-operating income

Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on bargain purchase1818941

(148)

–

87

Other

0–

Total extraordinary income

087

Loss on sales of non-current assets
Other–
1

10

Total extraordinary losses

1

1Profit (loss) before income taxes

940

(61)

Income taxes - current
Income taxes - deferred

239
(10)

84(224)

Total income taxes

229

(140)

Profit

711

78

711

78

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

378
19108–

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

(56)
(10)

(76)
(4)

Total other comprehensive income

330

27

Comprehensive income

1,041

105

Comprehensive income attributable toComprehensive income attributable to owners of parent

1,041

105

Extraordinary losses

Profit attributable toProfit attributable to owners of parent
Other comprehensive income5