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, 2018
(Based on Japanese GAAP)May 11, 2018
Company name:TOYO KANETSU K.K.
Stock exchange listing: Tokyo
Stock code:
Representative:

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

Inquiries:

Executive Officer, General Manager ofFinancial Planning Department, Corporate

Takeshi Yonehara

Management Division
Scheduled date of ordinary general meeting of shareholders:June 28, 2018

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

June 28, 2018
June 29, 2018

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, 2018 (from April 1, 2017 to March 31, 2018)(1) Consolidated operating results
Net salesYear ended March 31, 2018Year ended March 31, 2017

Millions of yen
41,75841,932

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
(0.4)
2,265 (26.5)
2,646(23.1)
2,362(36.9)(10.0)
3,080
1.9
3,441
6.6
3,746
96.5

Profit attributable toOrdinary profit/total Operating profit/net
owners ofsales
assetsparent/equity
YenYen%%%Year ended March 31, 2018251.26–
6.5
4.8
5.4
Year ended March 31, 2017373.78
–
10.7
6.6
7.3
(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.
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, 201856,29836,66665.1
3,941.68
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.
(3) Consolidated cash flows

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

Cash flows fromoperating activities
Millions of yen
3,726(2,131)

Cash flows frominvesting activities
Millions of yen(85)(1,714)

1

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen
2,032
12,420(2,820)6,810

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

Yen

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

Total

Yen

Yen

Millions of yen%

Year ended March 31, 2017
–0.00
–
12.00
12.00
1,150
32.1Year ended March 31, 2018–
0.00–
100.00100.00930
39.8Year ending March 31, 2019
–0.00–
100.00100.0042.5(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. Accordingly, the annual dividends per share for the year ending March 31, 2018 takes the share consolidation into account.

%

3.4
2.6

3. Forecast of consolidated financial results for the year ending March 31, 2019 (from April 1, 2018 to March 31, 2019)
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
52,500
25.7
3,020
33.3
3,340
26.2
2,210
(6.4)
235.06
4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2018(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:

NoNo

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, 2018

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

10,303,074 shares

401,043 shares As of March 31, 2017718,748 shares

Number of treasury shares at the end of the period
As of March 31, 2018
Average number of shares during the period
Year ended March 31, 2018
9,401,990 shares Year ended March 31, 2017
10,023,034 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Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2017

As of March 31, 2018

AssetsCurrent assets
Cash and deposits

6,811

12,421

12,824
1,526

9,387
1,781

100
54500
40

4,140
1,649

3,819
1,640

Deferred tax assets
Other582
872

506
494

Allowance for doubtful accounts

(83)

(21)

28,47930,570Notes and accounts receivable - trade
Lease investment assets
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies

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

3,578

3,457

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

1,132288

1,152282

Land
Construction in progress

10,965119

10,707
110

Other, net
Total property, plant and equipment
Intangible assets

00

16,084

15,710418

368

Investments and other assets
Investment securities

7,325

8,730

Deferred tax assets
Net defined benefit asset

41358

33398

Other
Allowance for doubtful accounts

788(267)778(292)

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

38,245

9,649

24,74825,72753,22856,298(Millions of yen)
As of March 31, 2017

As of March 31, 2018

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

2,347
2,397

2,033
4,604

Current portion of long-term loans payable
Accrued expenses

60
4,324

15
3,380

Income taxes payable
Advances received

647
1,173

316
417

Provision for bonuses
Provision for loss on order received

258
674

242
183

Provision for warranties for completed construction
Other512
709

580
924

Total current liabilities

13,104

12,698Non-current liabilities
Long-term loans payable

1,095

3,080

1,692
1,121

2,071
1,107

Net defined benefit liability
Asset retirement obligations

364
332

325
321

Other3727

Deferred tax liabilities
Deferred tax liabilities for land revaluation

Total non-current liabilities

4,642

6,933

17,747

19,632

Capital stock
Capital surplus

18,5801,273

18,580
1,273

Retained earnings
Treasury shares

16,447(2,323)15,750(1,397)

Total shareholders' equity

33,97834,207

Total liabilities
Net assets
Shareholders' equity

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

1,992

2,995

Deferred gains or losses on hedges
Revaluation reserve for land

(14)
163

–
133

Foreign currency translation adjustment
Remeasurements of defined benefit plans(652)
14(676)
5

Total accumulated other comprehensive income

1,503

2,458

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

4–035,481

36,66653,22856,298

Consolidated statements of income and consolidated statements of comprehensive income(Millions of yen)
Fiscal year ended
March 31, 2017

Fiscal year ended
March 31, 2018

Net sales
Cost of sales

41,932
33,66041,75834,172Gross profit

8,272

7,585

Selling, general and administrative expenses

5,191

5,319

Operating profit

3,080

2,265

20
248
–
60
136

11283
5–
134

466

434

20
69
15

33–
19105

53

Ordinary profit

3,441

2,646

Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Other

2,315
2
198
320
–

2,319

418

179
401–
226
2–
1972–
2809

94

Profit before income taxes

4,951

2,971

Income taxes - current
Income taxes - deferred

818
386

582
26

Total income taxes

1,205

609

Profit

3,746

2,362

3,746
–

2,362
(0)

203
(14)
(13)
2

1,003
14
(23)
(9)

177

985

Comprehensive income

3,923

3,347

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

3,923
–

3,347
(0)

Non-operating income
Interest income
Dividend income
Foreign exchange gains
Gain on investments in silent partnership
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Miscellaneous loss
Total non-operating expenses

Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Impairment loss
Head office relocation expenses
Other
Total extraordinary losses

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

5Consolidated statements of changes in equity
Fiscal year ended March 31, 2017
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

18,580Retained earnings

1,273

Treasury shares

15,170Total shareholders'equity(2,887)32,136

Changes of items during period
Dividends of surplus

(514)

(514)

Profit attributable to owners ofparent

3,746

3,746914914

Reversal of revaluation
reserve for land
Purchase of treasury shares
Retirement of treasury shares(2,304)(2,304)(2,868)2,868–

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

–

–

1,277

563

1,841

18,5801,273

16,447(2,323)33,978

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-forsale securities

Deferred gains
or losses onhedges

Revaluation
reserve for land

1,788

–

1,077

Foreigncurrencytranslation
adjustment(639)

Remeasurementsof definedbenefit plans

12

Total
accumulated
othercomprehensive
income2,239

Total net assets

34,376

Changes of items during period
Dividends of surplus(514)

Profit attributable to owners ofparent

3,746

Reversal of revaluation
reserve for land

914

Purchase of treasury shares(2,304)Retirement of treasury shares–

Net changes of items otherthan shareholders' equity

203

(14)

(914)

(13)

2(736)(736)

Total changes of items during
period

203

(14)

(914)

(13)

2(736)

1,104

Balance at end of current period

1,992

(14)

163(652)

141,50335,481

6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

2,362

3030

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 duringperiod
Balance 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

Revaluation
reserve forland

(14)

163

Foreigncurrencytranslation
adjustment(652)

TotalRemeasurements

accumulatedof defined benefit

otherplanscomprehensive

Noncontrollinginterests

Total net
assetsincome

14

1,503

–

35,481Changes of items during period
Dividends of surplus(1,150)

Profit attributable to owners ofparent

2,362

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)

52,458036,666

7Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
March 31, 2017

Fiscal year ended
March 31, 2018

Cash flows from operating activities
Profit before income taxes
Depreciation

4,951
691

2,971
737

Impairment loss
Amortization of goodwill

–62

72
–

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in net defined benefit liability

72
(86)

(37)
(28)

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

2165

(58)
(489)

Increase (decrease) in provision for warranties for completed
construction

330

68

Interest and dividend income
Interest expenses(269)
20(294)33

Head office transfer cost
Foreign exchange losses (gains)

226
34–
18

Loss (gain) on sales of investment securities
Loss (gain) on sales of non-current assets(2)(2,136)

(320)
(98)

Loss on retirement of non-current assets
Decrease (increase) in notes and accounts receivable - trade401(3,380)

19
3,375

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

0(1,833)

(257)
342

Decrease (increase) in advance payments
Increase (decrease) in notes and accounts payable - trade(286)99

252(1,272)

Increase (decrease) in advances received
Other, net

(303)
(119)

(773)
74

(1,357)4,336Interest and dividend income received
Interest expenses paid

272
(20)

294
(32)

Payments for Head office transfer
Income taxes paid

(233)
(791)

–
(872)

(2,131)

3,726

(202)

–

232
500

–
100

(5,160)3,647(436)295

Purchase of investment securities
Proceeds from sales and redemption of investment securities(887)
6(634)
500

Other, net

148

91

(1,714)(85)

Subtotal

Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Proceeds from sales and redemption of securities
Purchase of non-current assets
Proceeds from sales of non-current assets

Net cash provided by (used in) investing activities

8

(Millions of yen)
Fiscal year ended
March 31, 2017

Fiscal year ended
March 31, 2018

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

56
–

2,250
2,000(60)(2,304)(60)(1,013)–(512)

1(1,145)

Net cash provided by (used in) financing activities(2,820)2,032

Effect of exchange rate change on cash and cash equivalents

(130)

(64)

Net increase (decrease) in cash and cash equivalents(6,796)

5,609

Cash and cash equivalents at beginning of period

13,606

6,810

Cash and cash equivalents at end of period

6,810

12,420

Repayments of long-term loans payable
Purchase of treasury shares
Proceeds from share issuance to non-controlling shareholders
Cash dividends paid

9