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, 2021
(Based on Japanese GAAP)May 14, 2021
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
Managing Officer

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

June 29, 2021
June 29, 2021

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

June 30, 2021
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, 2021 (from April 1, 2020 to March 31, 2021)(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, 2021
43,617
(6.2)
2,623
1.2
3,053
2.8
1,777
3.5
Year ended March 31, 2020
46,518
2.9
2,591
84.3
2,970
67.7
1,717
67.5

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%–
5.0
5.1
6.0–
4.9
4.7
5.6

Diluted earnings pershareYen212.41
195.87

Year ended March 31, 2021
Year ended March 31, 2020
(2) Consolidated financial position

Total assets
As of March 31, 2021
As of March 31, 2020

Net assets

Equity ratio

Millions of yen
58,76460,985

Millions of yen
36,48434,602

Cash flows fromoperating activities
Millions of yen
1,482
6,955

Cash flows frominvesting activities
Millions of yen
(338)
(812)

Net assets per share%
62.1
56.7

Yen
4,461.06
4,095.51(3) Consolidated cash flows

Year ended March 31, 2021
Year ended March 31, 2020

Cash flows from
Cash and cash equivalentsat end of period
financing activities
Millions of yen
Millions of yen(5,176)
7,309(2,351)
11,402

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

Year ended March 31, 2020
Year ended March 31, 2021
Year ending March 31, 2022
(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

––

100.00115.00100.00115.00853
94951.1
54.1

2.5
2.7

–

0.00

–

105.00105.00150.2

3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
Net sales
Full year

Millions of yen
54,700Percentages 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
25.4
2,370(9.7)
2,670 (12.5)
1,750(1.6)
209.12

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2021
(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:

No
No

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, 2021

9,323,074 shares As of March 31, 2020

9,323,074 shares

1,144,747 shares As of March 31, 2020

874,440 shares

Number of treasury shares at the end of the period
As of March 31, 2021
Average number of shares during the period
Year ended March 31, 2021

8,368,557 shares Year ended March 31, 2020

2

8,770,801 shares

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2020

As of March 31, 2021

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

11,507
15,413

7,413
13,489

937
27

550
57

5,179
1,977

6,732
2,523

435
(16)

863
(13)

35,461

31,616

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

4,218
1,016

4,142
716

Tools, furniture and fixtures, net
Land

364
10,568284
10,122

253
20

356
18

Investments 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

16,442

15,641Intangible assets
Investments and other assets

Total property, plant and equipment

381

481

Investment securities
Deferred tax assets

8,013
45

9,909
42

Retirement benefit asset
Other

38
889

452
847

Allowance for doubtful accounts

(286)

(227)

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

3

8,699

11,02425,52327,14760,98558,764

(Millions of yen)
As of March 31, 2020

As of March 31, 2021

Liabilities
Current liabilities
Notes and accounts payable - trade

919

1,091

Short-term borrowings
Current portion of long-term borrowings

7,849
6193,620
8

Accrued expenses
Income taxes payable

4,763
553

3,778
914

Advances received
Provision for bonuses

2,790
267

2,354
259

241
389

30
348

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

455

681

18,84813,086

Bonds payable
Long-term borrowings

–
4,488

1,000
4,580

Deferred tax liabilities
Deferred tax liabilities for land revaluation

1,520
1,095

2,138
1,095

Retirement benefit liability
Asset retirement obligations

152
235

107
230

Other

40

41

Total current liabilities
Non-current liabilities

Total non-current liabilities

7,534

9,193

26,382

22,280Share capital
Capital surplus

18,5801,273

18,580
1,273

Retained earnings
Treasury shares

15,224(2,355)

16,148(2,933)

Total shareholders' equity

32,72233,068

2,666

3,937

Deferred gains or losses on hedges
Revaluation reserve for land

0106

9106

Foreign currency translation adjustment
Remeasurements of defined benefit plans

(729)
(165)

(833)
195

Total accumulated other comprehensive income

1,878

3,415

10

34,602

36,48460,98558,764

Total liabilities
Net assets
Shareholders' equity

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

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

Fiscal year ended

March 31, 2020

March 31, 2021

Net sales
Cost of sales

46,51837,35543,61734,369Gross profit

9,162

9,247

Selling, general and administrative expenses

6,570

6,623

Operating profit

2,591

2,623

Interest income
Dividend income

9277

14259

Foreign exchange gains
Subsidy income

534–
104

Reversal of allowance for doubtful accounts
Other

0125

84
113

Total non-operating income

452

576

5959

Bond issuance costs
Commission for purchase of treasury shares

–
123
17

Foreign exchange losses
Other–
1337
11

Total non-operating expenses

74

147

2,970

3,053

0578

9913

Non-operating income

Non-operating expenses
Interest expenses

Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Other–

65579

989

Loss on valuation of investment securities
Impairment losses

673
–

73
1,047

Loss on disaster
Other39
48

13
15

Total extraordinary income
Extraordinary losses

761

1,149

Profit before income taxes

Total extraordinary losses

2,788

2,892

Income taxes - current
Income taxes - deferred

759
311

1,199(83)

1,070

1,115

Total income taxes

5

(Millions of yen)

ProfitFiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021
1,717

1,777

1,717(0)1,777(0)

44

1,271

030

9(104)(104)

360

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

(29)

1,536

1,688

3,313

1,688(0)3,314(0)Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

6Consolidated statements of changes in equity
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
accumulated
otherof defined benefit
comprehensiv
plans
e income
Remeasurements

(61)

1,907

Noncontrollinginterests

1

Total net
assets35,234

Changes 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

440–30(104)

(29)

(0)

(29)

Total changes during period

440–30(104)

(29)

(0)

(631)

Balance at end of period

2,666

0106(729)

(165)

1,878

134,602

7

Fiscal year ended March 31, 2021
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

18,580Retained earnings

1,273

Total shareholders'equityTreasury shares

15,224(2,355)32,722

Changes during period
Dividends of surplus(853)(853)

Profit attributable to owners ofparent

1,777

1,777

Purchase of treasury shares

(583)

(583)

Disposal of treasury shares55

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

––

924

(578)

345

18,5801,273

16,148(2,933)33,068

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

2,666

Deferred
gains orlosses onhedges0

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

106

(729)

Totalaccumulated
otherof defined benefit
comprehensiv
plans
e income
Remeasurements

(165)

1,878

Noncontrollinginterests

1

Total net
assets34,602

Changes during period
Dividends of surplus(853)

Profit attributable to owners ofparent

1,777

Purchase of treasury shares(583)

Disposal of treasury shares

5

Net changes in items otherthan shareholders' equity

1,271

9–

(104)

360

1,536(0)1,536

Total changes during period

1,271

9–

(104)

360

1,536(0)1,882Balance at end of period

3,937

9106(833)

195

3,415

0

36,4848Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021
2,788

2,892

Depreciation
Impairment losses

718
–

776
1,047

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

(9)
(195)

(61)
(39)

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

139
120

94(211)

Increase (decrease) in provision for warranties for completedconstruction

(165)

(41)

Interest and dividend income
Interest expenses(287)
59(273)59

Loss on disaster
Foreign exchange losses (gains)

39(17)

13
97

Loss (gain) on valuation of investment securities
Loss (gain) on sale of investment securities

673
(578)

73(913)

Loss (gain) on sale of non-current assets
Loss on retirement of non-current assets

6(18)

(9)
4

Decrease (increase) in trade receivables
Decrease (increase) in investments in leases

7,865
562

1,865370

Decrease (increase) in inventories
Decrease (increase) in advance payments to suppliers(1,221)1(2,134)(228)

Increase (decrease) in trade payables
Increase (decrease) in advances received(3,428)
769

(785)
(436)

Other, net

(287)

(54)

Subtotal

7,533

2,104

Interest and dividends received

287

273

Interest paid
Payments associated with disaster loss

(67)
(24)

(62)
(28)

Income taxes paid

(772)

(804)

Net cash provided by (used in) operating activities

6,955

1,482

Payments into time deposits
Proceeds from withdrawal of time deposits

(166)
118

(102)
102

Purchase of non-current assetsProceeds from sale of non-current assets(1,424)4(1,131)11(250)878(470)
1,238

Cash flows from investing activities

Purchase of investment securities
Proceeds from sale and redemption of investment securities
Other, net
Net cash provided by (used in) investing activities

927

12(812)(338)

(Millions of yen)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of bonds
Purchase of treasury shares
Proceeds from disposal of treasury shares
Proceeds from share issuance to non-controlling shareholders
Dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

Fiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021–(4,229)

480(514)100(619)–(1,566)1,000(583)149
0

5–(901)(850)(2,351)(5,176)1(59)Net increase (decrease) in cash and cash equivalents

3,793(4,093)

Cash and cash equivalents at beginning of period

7,609

11,402

Cash and cash equivalents at end of period

11,402

7,309

10