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, 2019
(Based on Japanese GAAP)May 14, 2019
Company name:TOYO KANETSU K.K.
Stock exchange listing: Tokyo
Stock code:
Representative:

6369
URL https://www.toyokanetsu.co.jp
President and Representative Director
Toru Yanagawa

Inquiries:
Executive Officer
Scheduled date of ordinary general meeting of shareholders:Takeshi Yonehara
June 27, 2019

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

June 27, 2019
June 28, 2019

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

Yes
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, 2019 (from April 1, 2018 to March 31, 2019)(1) Consolidated operating results
Net salesYear ended March 31, 2019Year ended March 31, 2018

Millions of yen
45,18841,758Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
8.2
1,406(37.9)
1,771 (33.1)
1,025(56.6)(0.4)
2,265(26.5)
2,646 (23.1)
2,362(36.9)

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen
Yen%%%
Year ended March 31, 2019112.80–2.9
2.9
3.1
Year ended March 31, 2018251.26
–
6.5
4.8
5.4
(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.
Earnings per share

Diluted earnings pershare(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen
Millions of yen%
Yen
As of March 31, 2019
64,75635,23454.4
3,897.68
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.
(3) Consolidated cash flows

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

Cash flows fromoperating activities
Millions of yen(6,698)
3,726

Cash flows frominvesting activities
Millions of yen(1,315)(85)

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen
3,249
7,609
2,032
12,4202. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end
Yen

Yen

Yen

Yenof dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total
Yen

Millions of yen%

Year ended March 31, 2018–
0.00–
100.00100.00930
39.8Year ended March 31, 2019–
0.00–
100.00100.00903
88.7
Year ending March 31, 2020
–0.00–
100.00100.00
68.9(Forecast)(Note) The Company conducted a share consolidation at a ratio of 10 shares of common shares to 1 share, effective on October 1,2017.
1%

2.6
2.6

3. Forecast of consolidated financial results for the year ending March 31, 2020 (from April 1, 2019 to March 31, 2020)
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
44,700(1.1)
1,780
26.6
2,08017.4
1,320
28.7
145.17
4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2019(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:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

Restatement of prior period financial statements:

No(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, 2019

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

9,703,074 shares

283,723 shares As of March 31, 2018

401,043 shares

Number of treasury shares at the end of the period
As of March 31, 2019
Average number of shares during the period
Year ended March 31, 2019
9,092,866 shares Year ended March 31, 2018
9,401,990 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Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2018

As of March 31, 2019

AssetsCurrent assets
Cash and deposits

12,421

7,666

9,387
1,781

23,267
1,499

500
40–
38

3,819
1,640

4,252
1,670

494
(21)

534(22)30,06438,906

Buildings and structures, net
Machinery, equipment and vehicles, net3,457
1,152

3,321
1,021

Tools, furniture and fixtures, net
Land

282
10,707310
10,556

110
0622
12

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

15,71015,845Intangible assets
Investments and other assets

Total property, plant and equipment

368357

Investment securities
Deferred tax assets

8,730
58

8,671
63

Retirement benefit asset
Other398
778

332
868

Allowance for doubtful accounts

(292)

(289)

Total investments and other assets

9,674

9,646

25,75325,85055,81864,756

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2018

As of March 31, 2019

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

2,033
4,604

1,570
7,849

Current portion of long-term loans payable
Accrued expenses

15
3,380

514
7,534

Income taxes payable
Advances received

316
417

659
2,020Provision for bonuses
Provision for loss on order received

242
183

227
121

Provision for warranties for completed construction
Other

580
924

555
870

Total current liabilities

12,69821,922

Non-current liabilities
Long-term loans payable

3,080

4,627

1,591
1,107

1,267
1,095

Retirement benefit liability
Asset retirement obligations

325
321

358
224

Other

27

27

Deferred tax liabilities
Deferred tax liabilities for land revaluation

Total non-current liabilities

6,453

7,599

19,151

29,522

Capital stock
Capital surplus

18,5801,273

18,580
1,273

Retained earnings
Treasury shares

15,750(1,397)

14,549(1,077)

Total shareholders' equity

34,20733,324

Total liabilities
Net assets
Shareholders' equity

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

2,995

2,621

Revaluation reserve for land
Foreign currency translation adjustment

133(676)

106(759)

Remeasurements of defined benefit plans

5(61)

2,458

1,907

0

1

36,66635,23455,81864,756

Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income(Millions of yen)
Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Net sales

41,75845,188

Cost of sales

34,172

38,194Gross profit

7,585

6,994

Selling, general and administrative expenses

5,319

5,588

Operating profit

2,265

1,406

Non-operating income
Interest income

1112

Dividend income
Foreign exchange gains

283
5302–

Miscellaneous income

134

136

Total non-operating income

434

452

Interest expenses
Foreign exchange losses

33–

4919Miscellaneous loss

1917

Non-operating expenses

Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on bargain purchase
Disaster donations
Other
Total extraordinary income
Extraordinary losses
Loss on valuation of investment securities
Loss on disaster
Other
Total extraordinary losses

53

87

2,646

1,771

98

36

320
–

74
87

–
–

46
1

418

246

–

237

–
94

159
2094

418

Profit before income taxes

2,971

1,599

Income taxes - current
Income taxes - deferred

58226748(173)

Total income taxes

609

574

2,362

1,025

Profit attributable to owners of parent
Loss attributable to non-controlling interests

2,362
(0)

1,025
(0)

Other comprehensive income
Valuation difference on available-for-sale securities

1,003

(374)

Deferred gains or losses on hedges
Foreign currency translation adjustment

14(23)–(83)

Remeasurements of defined benefit plans, net of tax

(9)

(66)

Total other comprehensive income

985(523)

3,347

501

3,347(0)501(0)

ProfitProfit attributable toComprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

5Consolidated statements of changes in equity
Fiscal year ended March 31, 2018
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

18,580Retained earnings

1,273

Total shareholders'equityTreasury shares

16,447(2,323)33,978Changes of items during period
Dividends of surplus(1,150)(1,150)

Profit attributable to owners ofparent

2,362

2,3623030

Reversal of revaluation
reserve for land
Purchase of treasury shares
Retirement of treasury shares(1,013)(1,013)(1,939)1,939–

Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current period

––

(697)

926

229

18,5801,273

15,750(1,397)

34,207

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of current
period1,992

Deferred
gains orlosses onhedges(14)

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

163

(652)

Totalaccumulated
otherof defined benefit
comprehensiv
plans
e income
Remeasurements

14

1,503

Noncontrollinginterests–

Total net
assets35,481

Changes of items during period
Dividends of surplus(1,150)

Profit attributable to owners ofparent2,362

Reversal of revaluation
reserve for land

30

Purchase of treasury shares(1,013)Retirement of treasury shares–

Net changes of items otherthan shareholders' equity

1,003

14(30)

(23)

(9)

955

0956

Total changes of items during
period1,003

14(30)

(23)

(9)

955

0

1,185

Balance at end of current period

2,995–133(676)

5

2,458

036,666

6Fiscal year ended March 31, 2019
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

18,580Retained earnings

1,273

Treasury shares

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

34,207

Changes of items during period
Dividends of surplus

(930)

(930)

Profit attributable to owners ofparent

1,025

1,025

26

26

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

1,323–

Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current period––(1,201)319(882)

18,5801,273

14,549(1,077)33,324

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference 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
income2,458036,666

Changes of items 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)Retirement of treasury shares–

Net changes of items otherthan shareholders' equity

(374)

(26)

(83)

(66)

(550)

0(550)

Total changes of items during
period

(374)

(26)

(83)

(66)

(550)

0(1,432)

Balance at end of current period

2,621

106(759)

(61)

1,907

135,2347

Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Cash flows from operating activities
Profit before income taxes
Depreciation

2,971
737

1,599
728

Impairment loss
Gain on bargain purchase

72
––
(87)

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

(37)
(28)

(3)
(13)

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

(58)
(489)

4(62)

Increase (decrease) in provision for warranties for completedconstruction

68

(25)

(294)
33(315)49

Disaster donations
Loss on disaster––(46)
159

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

18–

72
237

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

(320)
(98)

(74)
(31)

Loss on retirement of non-current assets
Decrease (increase) in notes and accounts receivable - trade

19
3,375

8(13,749)

Decrease (increase) in lease investment assets
Decrease (increase) in inventories

(257)
342

272
(419)

252(1,272)

95
3,714

Increase (decrease) in advances received
Other, net(773)
74

1,621(134)

Subtotal

4,336(6,400)

Interest and dividend income received
Interest expenses paid294(32)314(50)Disaster donations received
Payments associated with disaster loss––

46
(159)

Income taxes paid

(872)

(449)

Net cash provided by (used in) operating activities

3,726(6,698)

Proceeds from sales and redemption of securities
Purchase of non-current assets

100(436)500(1,080)

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

295(634)375(717)Proceeds from sales and redemption of investment securities
Purchase of shares of subsidiaries resulting in change in scope

500

74

Interest and dividend income
Interest expenses

Decrease (increase) in advance payments
Increase (decrease) in notes and accounts payable - trade

Cash flows from investing activities

of consolidation
Other, net–(427)

91

(40)

Net cash provided by (used in) investing activities(85)(1,315)8

(Millions of yen)
Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable

2,250
2,000

3,217
2,000

Repayments of long-term loans payable
Purchase of treasury shares(60)(1,013)(38)(1,004)

Proceeds from share issuance to non-controlling shareholders
Cash dividends paid

1(1,145)1(926)Net cash provided by (used in) financing activities

2,032

3,249

Effect of exchange rate change on cash and cash equivalents

(64)

(45)

Net increase (decrease) in cash and cash equivalents

5,609(4,810)Cash and cash equivalents at beginning of period

6,810

12,420Cash and cash equivalents at end of period

12,4207,6099