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 Nine Months Ended December 31, 2017
(Based on Japanese GAAP)
February 13, 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 YanagawaInquiries:

Financial Planning Department, Corporate
Management Division

Takeshi Yonehara

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

February 14, 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 nine months ended December 31, 2017 (from April 1, 2017 to December 31, 2017)(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%
Nine months ended December 31, 2017
31,5469.3
2,035(9.6)
2,428(8.0)
2,127 (28.7)
Nine months ended December 31, 2016
28,849 (15.8)
2,252 (10.3)
2,639(8.3)
2,985
70.8
Earnings per share

Diluted earnings per share

Yen
Yen
Nine months ended December 31, 2017
225.61–
Nine months ended December 31, 2016
293.96–(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 thebeginning of 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 December 31, 2017
56,18136,85765.6
3,961.89
As of March 31, 2017
53,22835,481
66.7
3,702.00(Note) The Company conducted a share consolidation at a ratio of 10 shares of common shares to 1 share, effective on October 1,
2017. Accordingly, the net assets per share is calculated based on the assumption that the share consolidation had been conducted at thebeginning of the previous fiscal year.

2. Cash dividends
Annual dividends per share

Year ended March 31, 2017
Year ending March 31, 2018

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
––

Yen
0.00
0.00

Yen––

Yen
12.00

TotalYen
12.00

Year ending March 31, 2018 (Forecast)
100.00100.00(Note) The Company conducted a share consolidation at a ratio of 10 shares of common shares to 1 share, effective on October 1,
2017. Accordingly, the forecast for annual dividends per share for the year ending March 31, 2018 takes the share consolidation into
account.

1

3. Forecast of consolidated financial results for the year ending March 31, 2018 (from April 1, 2017 to March 31, 2018)
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
44,9007.1
2,570 (16.6)
2,890 (16.0)
2,200 (41.3)
232.32(Note) The forecast for earnings per share for the year ending March 31, 2018 takes the share consolidation into account.
4. Notes(1) Changes in significant subsidiaries during the nine months ended December 31, 2017(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: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 December 31, 2017

9,703,074 shares As of March 31, 2017

10,303,074 shares

400,289 shares As of March 31, 2017718,748 shares

Number of treasury shares at the end of the period
As of December 31, 2017

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2017
9,431,914 shares Nine months ended December 31, 2016
10,154,589 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, (i) the total number of issued shares at the end of the period, (ii) the number of treasury shares at the end of the period,and (iii) the average number of shares during the period, are 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, 2017

As of December 31, 2017

AssetsCurrent assets
Cash and deposits

6,811

7,563

12,824
1,526

12,876
1,867

100
54600
40

4,140
1,649

4,566
1,658

Deferred tax assets
Other582
872

201
435

Allowance for doubtful accounts

(83)

(24)

28,47929,785

Notes and accounts receivable - trade
Lease investment assets
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net

3,578

3,489

Machinery, equipment and vehicles, net
Tools, furniture and fixtures, net

1,132
288

1,041
313

Land
Construction in progress

10,965
119

10,78050

Other, net
Total property, plant and equipment
Intangible assets

00

16,084

15,674418

390

Investments and other assets
Investment securities

7,325

9,441

Deferred tax assets
Net defined benefit asset

41358

33287

OtherAllowance for doubtful accounts

788(267)862(293)

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

38,245

10,331

24,74826,39653,22856,181

(Millions of yen)
As of March 31, 2017

As of December 31, 2017

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

2,347
2,397

2,137
6,645

Current portion of long-term loans payable
Accrued expenses

60
4,324

30
2,739

Income taxes payable
Deferred tax liabilities

647
–

153
5

Advances received
Provision for bonuses

1,173
258

923
4

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

674
512

86
540

Other

709

915

13,104

14,181Long-term loans payable
Deferred tax liabilities

1,095
1,692

1,080
2,176

Deferred tax liabilities for land revaluation
Net defined benefit liability

1,121
364

1,121
400

332
37

327
37

Total current liabilities
Non-current liabilities

Asset retirement obligations
Other
Total non-current liabilities

4,642

5,142

17,747

19,324Shareholders' equity
Capital stock

18,58018,580Capital surplus
Retained earnings

1,273
16,447

1,273
15,486

Total liabilities
Net assets

Treasury shares(2,323)(1,394)

Total shareholders' equity

33,97833,945

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

1,992
(14)

3,489
–

Revaluation reserve for land
Foreign currency translation adjustment

163
(652)

163
(715)

Accumulated other comprehensive income

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

414(26)

1,503

2,911

–

135,481

36,85753,22856,181

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

Nine months ended

December 31, 2016

December 31, 2017

Net sales
Cost of sales

28,84922,64831,54625,570Gross profit

6,201

5,976

Selling, general and administrative expenses

3,949

3,940

Operating profit

2,252

2,035

Interest income
Dividend income

16246

8280

Foreign exchange gains
Other17133

4698

Total non-operating income

414

435

1427

1315

Non-operating income

Non-operating expenses
Interest expenses
Other

2842

Ordinary profit

Total non-operating expenses

2,639

2,428

Extraordinary income
Gain on sales of non-current assets

2,315

95

2
1320
–

2,319

415

Gain on sales of investment securities
Other
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets

179

2

Loss on retirement of non-current assets
Loss on valuation of golf club membership

377–12

Head office relocation expenses
Other

224
34–0816

6

Profit before income taxes

Total extraordinary losses

4,141

2,837

Income taxes - current
Income taxes - deferred

531
624

462
247

Total income taxes

1,156

709

Profit

2,985

2,127

2,985

2,127

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

303
(0)

1,497
14

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

(174)
(38)

(62)
(41)

Profit attributable toProfit attributable to owners of parent
Other comprehensive income

89

1,407Comprehensive income

Total other comprehensive income

3,074

3,535

Comprehensive income attributable toComprehensive income attributable to owners of parent

3,074

3,535

5