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, 2020
(Based on Japanese GAAP)
November 12, 2020
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 OfficerScheduled date to file Quarterly Securities Report:

Takeshi Yonehara
November 13, 2020

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, 2020 (from April 1, 2020 to September 30, 2020)(1) Consolidated operating results (cumulative)
Net sales
Six months ended September 30, 2020
Six months ended September 30, 2019

Millions of yen
20,17820,501

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
(1.6)
1,056
43.2
1,164
21.9
736
7.9
19.9
737
–
955 290.2
682 460.7

Earnings per share

Diluted earnings per share

Yen
87.14
76.03

Six months ended September 30, 2020
Six months ended September 30, 2019

Yen––(2) Consolidated financial position
Total assets
As of September 30, 2020
As of March 31, 2020

Net assets

Millions of yen
56,84760,985Equity ratio

Millions of yen
35,886
34,602

Net assets per share
%
63.1
56.7

Yen
4,247.71
4,095.51

2. Cash dividends
Annual dividends per share

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

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
––

Yen
0.00
0.00

Yen–

Yen
100.00Yen
100.00–100.00100.00Year ending March 31, 2021 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2021 (from April 1, 2020 to March 31, 2021)
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
48,1003.4
2,160 (16.7)
2,520 (15.2)
1,630(5.1)
185.841

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2020(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:
Changes in accounting policies due to other reasons:

No
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, 2020

9,323,074 shares As of March 31, 20209,323,074 shares

874,752 shares As of March 31, 2020

874,440 shares

Number of treasury shares at the end of the period
As of September 30, 2020

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2020

8,448,831 shares Six months ended September 30, 20192

8,975,287 shares

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

As of September 30, 2020

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

11,507
15,413

10,220
9,366

937
27

734
38

5,179
1,977

5,816
2,162

435
(16)

814
(12)

35,461

29,141

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

4,218
1,016

4,311
924

Tools, furniture and fixtures, net
Land

364
10,568336
10,550

253
20

335
21

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

16,480Intangible assetsInvestments and other assets

Total property, plant and equipment

381

355

Investment securities
Deferred tax assets

8,013
45

10,21428

Retirement benefit asset
Other38889

23887

Allowance for doubtful accounts

(286)

(285)

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

3

8,699

10,86925,52327,70560,98556,847

(Millions of yen)
As of March 31, 2020

As of September 30, 2020

Liabilities
Current liabilities
Notes and accounts payable - trade

919

784

Short-term borrowings
Current portion of long-term borrowings7,849
619

4,120
100

Accrued expenses
Income taxes payable

4,763
553

3,119
396

Advances received
Provision for bonuses

2,790
267

2,384
298

241
389

38
419

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

455

607

18,84812,268

Bonds payable
Long-term borrowings

–
4,488

500
4,495

Deferred tax liabilities
Deferred tax liabilities for land revaluation

1,520
1,095

2,158
1,095

Retirement benefit liability
Asset retirement obligations

152
235

166
234

Other40

40

Total current liabilities
Non-current liabilities

Total non-current liabilities

7,534

8,691

26,382

20,960Share capital
Capital surplus

18,5801,273

18,580
1,273

Retained earnings
Treasury shares

15,224(2,355)

15,107(2,356)

Total shareholders' equity

32,72232,604

2,666

4,061

Deferred gains or losses on hedges
Revaluation reserve for land

0106

8106

Foreign currency translation adjustment
Remeasurements of defined benefit plans

(729)
(165)

(781)
(113)

Total accumulated other comprehensive income

1,878

3,281

10

34,60235,88660,98556,847

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 (cumulative) and consolidated statements of comprehensive income(cumulative)(Millions of yen)Six months ended
September 30, 2019

Six months ended
September 30, 2020

Net sales

20,501

20,178

Cost of sales

16,495

15,863Gross profit

4,006

4,315

Selling, general and administrative expenses

3,268

3,2587371,056

Non-operating income
Interest income

58Dividend income
Other

208
53183
40

Total non-operating income

267

232

2933

12870
21

Operating profit

Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses

50

125

955

1,164

Gain on sales of investment securities
Other

290
0–
0

Total extraordinary income

291

093

21

Merger expenses
Loss on disaster

22––
9

Other

72

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on valuation of investment securities

Total extraordinary losses

123

33

1,123

1,130Income taxes - current

278

373

Income taxes - deferred

163

21

Total income taxes

441

394

Profit682

736

Profit attributable toLoss attributable to non-controlling interests

(0)

(0)

682

736

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

340
–

1,395
8

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax(7)
10(52)
51

Total other comprehensive income

343

1,403

Comprehensive income

1,025

2,139

Comprehensive income attributable toComprehensive income attributable to owners of parent

1,025

2,139(0)(0)

Profit before income taxes

Profit attributable to owners of parent
Other comprehensive income

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, 2019

September 30, 2020

1,123

1,130

Depreciation
Increase (decrease) in allowance for doubtful accounts

367
(8)

369
(5)

Decrease (increase) in retirement benefit asset
Increase (decrease) in retirement benefit liability

220(153)4449

Increase (decrease) in provision for loss on order received
Increase (decrease) in provision for warranties for completed

(13)

(203)

(134)

29(213)(192)

Interest expenses
Merger expenses

2922

33
–

Loss on disaster
Foreign exchange losses (gains)

–
18

973

93(290)

21
–

0
600

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

10,104
293

5,998
179

Decrease (increase) in inventories
Decrease (increase) in advance payments - trade(1,759)125(837)(320)

Increase (decrease) in trade payablesIncrease (decrease) in advances received(3,516)
1,278(1,748)(406)

construction
Interest and dividend income

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

Other, net

(581)

49

Subtotal

7,012

4,276

Interest and dividends received

213

192

Interest paid
Income taxes paid

(33)
(539)

(35)
(481)

Payments for Merger expenses
Payments associated with disaster loss

(22)
––
(23)

6,630

3,928

Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits

(115)

(51)

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

76(769)48(372)

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

0(97)1(212)

Proceeds from sales and redemption of investment securities
Other, net

440
1–
(1)

Net cash provided by (used in) investing activities

(463)

(588)

6

(Millions of yen)

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

Six months ended

Six months ended

September 30, 2019

September 30, 2020

(3,500)(3,729)

Repayments of long-term borrowings
Proceeds from issuance of bonds(19)–(512)
500

Proceeds from disposal of treasury shares
Purchase of treasury shares

149
(350)

5(7)

Dividends paid

(900)

(848)

Net cash provided by (used in) financing activities(4,620)(4,591)

Effect of exchange rate change on cash and cash equivalents

(13)

(39)

Net increase (decrease) in cash and cash equivalents

1,533(1,290)Cash and cash equivalents at beginning of period

7,609

11,402

Cash and cash equivalents at end of period

9,143

10,1127