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, 2021
(Based on Japanese GAAP)
November 11, 2021
Company name:TOYO KANETSU K.K.
Stock exchange listing: Tokyo
Stock code:
6369
URL https://www.toyokanetsu.co.jp
Representative:
President and Representative Director
Toru Yanagawa
Inquiries:
Managing OfficerTakeshi Yonehara
Scheduled date to file Quarterly Securities Report:
November 12, 2021
Scheduled date to commence dividend payments:–Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results meeting:
NoTEL

03-5857-3333(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2021 (from April 1, 2021 to September 30, 2021)(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%Six months ended September 30, 2021
30,657–
1,613–
1,904–
1,142–
Six months ended September 30, 2020
20,178
(1.6)
1,056
43.2
1,164
21.9
736
7.9
Earnings per share

Diluted earnings per share

Yen
Yen
Six months ended September 30, 2021
139.68–Six months ended September 30, 2020
87.14–
(Note)From the beginning of the 1st quarter of the current fiscal year ending March 31, 2022, the Company has applied “Accounting Standard
for Revenue Recognition” (ASBJ Statement No. 29). The figures for the 2nd quarter of the current fiscal year above include the effectsof the said standards. Accordingly, percentages of changes from the same period of the previous fiscal year are not indicated.
(2) Consolidated financial position
Total assets
Net assets
Equity ratio
Net assets per share
Millions of yen
Millions of yen%
Yen
As of September 30, 2021
59,60536,61961.4
4,477.66
As of March 31, 2021
58,76436,48462.1
4,461.06(Note) From the beginning of the 1st quarter of the current fiscal year ending March 31, 2022, the Company has applied “Accounting Standard
for Revenue Recognition” (ASBJ Statement No. 29). The figures for the 2nd quarter of the current fiscal year above include the effectsof the said standards.
2. Cash dividends
Annual dividends per share

Year ended March 31, 2021
Year ending March 31, 2022

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen–
–

Yen
0.00
0.00

Yen–

Yen
115.00Yen
115.00–105.00105.00Year ending March 31, 2022 (Forecast)

Total3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
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
54,70025.4
2,370(9.7)
2,670 (12.5)
1,750(1.6)
209.1214. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2021
(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:
Yes
Changes in accounting policies due to other reasons:No
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, 2021

9,323,074 shares As of March 31, 2021

9,323,074 shares

1,145,368 shares As of March 31, 2021

1,144,747 shares

Number of treasury shares at the end of the period
As of September 30, 2021

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2021

8,178,051 shares Six months ended September 30, 2020

28,448,831 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2021

As of September 30, 2021

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

7,413
13,4898,042
19,457

550
57

376
52

6,732
2,523

860
2,169

863
(13)

791
(16)

31,616

31,733

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

4,142
716

4,168
765

Tools, furniture and fixtures, net
Land

284
10,122368
10,372

356
18500
37

15,641

16,213

Intangible assets
Investments and other assets

481

598

Investment securities
Deferred tax assets

9,909
42

9,792
188

Retirement benefit asset
Other452
847

447
858

Allowance for doubtful accounts

(227)

(226)

Total investments and other assets

11,024

11,06027,147

27,871

58,76459,605Investments 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

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

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2021

As of September 30, 2021

Liabilities
Current liabilities
Notes and accounts payable - trade

1,091

1,101

Short-term borrowings
Current portion of long-term borrowings

3,620
8

4,620
2

Accrued expenses
Income taxes payable

3,778
914

3,910
657

Contract liabilities
Provision for bonuses

2,354
259

1,430
408

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

30
348

–297

Other681

883

13,086

13,311

Bonds payable
Long-term borrowings

1,000
4,580

1,000
4,580

Deferred tax liabilities
Deferred tax liabilities for land revaluation

2,138
1,095

2,199
1,095

Retirement benefit liability
Asset retirement obligations

107230390
310

Other4198

Total current liabilities
Non-current liabilities

Total non-current liabilities

9,193

9,674

22,28022,986

Share capital
Capital surplus

18,5801,273

18,580
1,273

Retained earnings
Treasury shares

16,148(2,933)

16,341(2,935)

Total shareholders' equity

33,06833,259Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities3,937

3,872

Deferred gains or losses on hedges
Revaluation reserve for land

9106

3106

Foreign currency translation adjustment
Remeasurements of defined benefit plans

(833)
195

(819)
194

Total accumulated other comprehensive income

3,415

3,357

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

402

36,48436,61958,76459,605

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)(Millions of yen)Six months ended
September 30, 2020

Six months ended
September 30, 2021

Net sales

20,17830,657

Cost of sales

15,86325,461Gross profit

4,315

5,195

Selling, general and administrative expenses

3,258

3,582

Operating profit

1,056

1,613

Non-operating income
Interest income

83

Dividend income
Foreign exchange gains

183–

19437

Gain on sale of scraps
Other

633

33
54

Total non-operating income

232

323

Non-operating expenses
Interest expenses

33

29

Foreign exchange losses
Other

70
21–
2

Total non-operating expenses

125

32

1,164

1,904

Gain on sale of membership
Other–
090

Total extraordinary income092190

92–0

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on valuation of investment securities
Loss on disaster
Other33

91

Profit before income taxes

Total extraordinary losses

1,130

1,822

Income taxes - current
Income taxes - deferred

373
21607
73

Total income taxes

394

681

Profit736

1,141736(0)1,142(0)1,395(65)

8(52)

(5)
14

Profit attributable toProfit attributable to owners of parent
Loss attributable to non-controlling interests
Other comprehensive income
Valuation difference on available-for-sale securitiesDeferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income

51(0)1,403(57)

2,139

1,083

2,139(0)1,084(0)Comprehensive income attributable toComprehensive income attributable to owners of parent
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 ended

September 30, 2020

September 30, 2021

1,130

1,822

Depreciation
Amortization of goodwill

369–3700Increase (decrease) in allowance for doubtful accounts
Decrease (increase) in retirement benefit asset

(5)
44

113

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

49(203)2(30)Increase (decrease) in provision for warranties for completedconstruction

29(50)

Interest and dividend income
Interest expenses(192)
33(197)29

Loss on disaster
Foreign exchange losses (gains)973–(78)

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

210900Loss (gain) on sale of non-current assets
Decrease in trade receivables and contract assets

05,998(0)(4,447)

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

179(837)

166
6,243(320)(1,748)9(424)

Increase (decrease) in contract liabilities
Other, net(406)
49(1,009)
79

Subtotal

Decrease (increase) in advance payments to suppliers
Increase (decrease) in trade payables

4,276

2,593

Interest and dividends received
Interest paid192(35)

197
(29)

Income taxes paid
Payments associated with disaster loss

(481)
(23)

(931)
–

Net cash provided by (used in) operating activities

3,928

1,830

Cash flows from investing activities
Payments into time deposits

(51)

(51)

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

48(372)48(475)

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

1(212)

0(42)

–0–

(619)

Proceeds from sale 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

6(1)194(588)(945)

(Millions of yen)

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

Six months ended

Six months ended

September 30, 2020

September 30, 2021

(3,729)

664

(512)
500

(5)
––
52–(7)
(848)

(1)
(944)

Net cash provided by (used in) financing activities(4,591)(286)

Effect of exchange rate change on cash and cash equivalents

(39)

26

Repayments of long-term borrowings
Proceeds from issuance of bonds
Proceeds from share issuance to non-controlling shareholders
Proceeds from disposal of treasury shares
Purchase of treasury shares
Dividends paid

Net increase (decrease) in cash and cash equivalents(1,290)625

Cash and cash equivalents at beginning of period

11,402

7,309

Cash and cash equivalents at end of period

10,112

7,935

7