ACTION

FOR THE FUTURETKK Report 2022
Financial Section(Fiscal year ended March 31, 2022)

This material is the Financial Section of the TKK Report 2022, theintegrated report published by Toyo Kanetsu K.K. that summarizes
the financial information for the Company’s fiscal year 2021 (Apr.
2021 to Mar. 2022).

CONTENTS
1

Analysis of Operating Environment and Results

2

Business Risks

10

Consolidated Balance Sheet

12

Consolidated Statement of Income and Comprehensive Income

13

Consolidated Statement of Changes in Equity

15

Consolidated Statement of Cash Flows17

Notes to Consolidated Financial Statements

51

Independent Auditor’s Report

56

Corporate Data

56

Directory

Analysis of Operating Environment and Results

During the fiscal year under review, as vaccination

Logistics Solutions Businessprograms were rolled out in developed countries, theThe Logistics Solutions Business posted net sales ofJapanese economy showed some signs of recovery after¥32,987 million, up 21.1% year on year. This increase mainly

rapidly worsening due to the impact of the COVID-19

reflected sales of automated warehouse equipment, which

pandemic.

incorporate the Company’s Multishuttle pallet automatedstorage and retrieval system (ASRS), to e-commerce

The economic outlook remained uncertain, however, duebusinesses, retailers, co-ops, and manufacturers. Operating

to Russia’s invasion of Ukraine in February 2022 andprofit edged up by 0.3% to ¥3,149 million, as project

global supply chain bottlenecks, made worse by

expenses increased in line with larger projects. Orders

COVID-19 lockdowns in China.

received came to ¥31,955 million, an increase of 4.4% year
on year.

Against this backdrop, the Logistics Solutions Business
continued to benefit from strong demand for automatedPlant & Machinery Businessand labor-saving equipment used in logistics facilities as

Due to higher sales for the maintenance of oil refineries

companies worked to overcome labor shortages andin Japan, the Plant & Machinery Business posted net

handle larger volumes of e-commerce goods, in highsales of ¥15,006 million, an increase of 53.1% year on

demand from consumers staying home during theyear. Due to a change in accounting methods applied

pandemic. On the other hand, in this business segment

during the fiscal year under review, however, sales costs

there was slow demand for baggage handling systemsof ¥3,290 million were added to net sales. If this amountfor airports, reflecting the drop in air travel during thewas excluded using the previous accounting method,

pandemic.

net sales would have been ¥11,716 million, an increaseof 19.5%. Operating profit came to ¥108 million,

At the same time, the Plant & Machinery Businesscompared with an operating loss of ¥602 million in thecontinued to receive numerous orders for maintenanceprevious fiscal year. Orders received amounted toservices at oil refineries in Japan. With the end of the¥13,846 million, up 49.5% year on year.

pandemic in sight, enquiries about new facility projects
have increased, but challenging conditions arecontinuing.

Other Businesses
Net sales grew 70.0% year on year to ¥11,183 million,
reflecting the Group’s focus on increasing business forGiven these circumstances, the Company posted higher

industrial machinery, general construction, andyear-on-year consolidated net sales and profits. Net

environment-related businesses by leveraging thesales rose by 35.7% to ¥59,177 million. Operating profit

specializations of our subsidiaries. Despite this result,increased 7.0% to ¥2,808 million, mainly due tooperating profit decreased by 27.5% to ¥572 million andcontributions from the Logistics Solutions Business,orders received declined by 43.7% to ¥1,282 million.

which continued to perform strongly. Ordinary profit
grew 13.8% to ¥3,474 million, and profit attributable toowners of parent jumped 31.3% to ¥2,334 million. In
addition, orders received came to ¥47,085 million, up
11.7% year on year.

TKK Report 2022 Financial Section

1

Business Risks

Toyo Kanetsu’s risk management system includes a risk

economy, including the development of products andmanagement officer—appointed from among theservices that save energy and the adoption of renewabledirectors who oversee the risk management of theenergy, especially by installing solar panels. In May 2022,

Company and the Group—as well as a Group-wide risk

the Group declared the goal of becoming carbon neutral

management department, under the command of theby 2050 by reducing greenhouse gas emissions (Scopes

risk management officer who identifies risks and

1 and 2). We also began disclosing information about

monitors evaluations and results. Important risks are

climate-related risks and opportunities, starting from

regularly reviewed after considering changes in thefiscal 2022, based on the recommendations of the Task

business environment and the status of risk responses,

Force on Climate-Related Financial Disclosures (TCFD).

and we strive to ensure that effective risk

Recognizing our response to climate change as ancountermeasures are being quickly implemented.

excellent opportunity for considering ways of dealing
with long-term climate-related risks and opportunities,

Of all the risks that could affect our business activities,

the Group’s management intends to disclose informationsome risks with a possible significant impact are shownand to dialogue with investors and other stakeholders.

below. However, this is not an exhaustive list of risks
related to the Group and there are risks that are difficult

In addition, the Group recognizes that public trust could

to foresee.

be lost if we or one of our subsidiaries causes anenvironmental accident or disaster. To mitigate this risk,

Forward-looking statements in the text are based on

we have acquired and periodically renew our ISO 14001

assessments as of March 31, 2021, the date of the fiscal

certification, and we have established and actively

year ended.

implement a compliant environmental management
system in accordance with our environmental policies.

(1) Impact of climate change
The TKK Group places great importance on the(2) Risks related to the execution of projects

promotion of ESG management and the international

In the Logistics Solutions Business, project management

goals set out in the SDGs and Paris Agreement.

and the ability to execute operations are becoming

Especially, we recognize that “responding to changes inincreasingly important. This is because the role ofthe business environment caused by climate change” isdistribution centers in the supply chain is growing with

one of our most important material issues for management.

the expansion of the e-commerce market and more

Growing awareness of global environmental issues andoutsourcing of logistics operations, and because there is

the transition to a low-carbon or decarbonized society

a tendency for distribution centers to grow larger in line

are accelerating the shift to using clean energy.

with the streamlining of logistics operations and theAccordingly, the Company’s operating environment is

consolidation of bases.

inevitable unfavorable due to declining demand for tanks
used to store LNG, crude oil, and other fossil fuels.

For these reasons, we carefully manage delivery

Recognizing these trends, and with the goal of helping

deadlines—from sales proposals through toachieve a low-carbon society, the Group is applying ourconstruction—and strive to reduce costs and workloads

technologies to develop large-scale storage containers

by standardizing processes and improving productivity.

for liquid hydrogen, and drawing on our strengths to

We also established a system for executing sustainableproactively build and supply increasingly needed

projects and increased the number of companies using

equipment and infrastructure for storing and using

this system. However, unexpected costs could behydrogen and ammonia as fuel.

incurred due to various factors, such as shortened
construction periods due to unexpected changes in

2

The TKK Group as a whole has been promoting

construction plans under pressure to reduce delivery

initiatives for decarbonization and realizing a low-carbon

times and delivery deadline adjustments due to carrying

TKK Report 2022 Financial Section

out multiple large projects simultaneously within a certain

the TKK Grouptime period.

(5) Social disorder due to terrorism, war, epidemics,
disasters, or other factors.

Moreover, some of the core products provided by thisbusiness segment include products purchased from

Furthermore, the TKK Group’s business results andspecific overseas business partners. The execution offinancial position could be adversely affected by steeply

projects could be affected if these products cannot berising prices and shortages of parts resulting from thepurchased consistently due to changes in the businessmaterialization of geopolitical risks and the impact of thepolicies and environment of our business partners,

COVID-19 pandemic.

demand and supply fluctuations, or due to natural
disasters, accidents, and so on.

In addition, when working on a project, we take out
product liability insurance for that project, and to ensure

The Plant & Machinery Business repairs storage tanks,

quality, the Group has established internal regulations

mainly at oil refineries in Japan. Our ability to executeand put in place a quality management system tothese projects could be negatively affected by a shortage

strengthen quality control. We have also established aof construction workers, a sharp rise in the costs ofsystem that enables a quick response to quality

materials and equipment, or when the skills of site

problems by placing the department responsible formanagers and foremen are passed down too slowly.

quality control directly under the president. However, in

Therefore, we have taken steps to improve ties withthe unlikely event of serious quality complaints or

subcontractors and suppliers, have set up a stableproblems with a product, not only would profits from theconstruction organization, and have established TKK

project deteriorate due to repair costs andPlant Engineering K.K. to hire and train workers forindemnification, this could also lead to a decline in theconstruction sites. Furthermore, we have set up aGroup’s social reputation, which could adversely affectcentralized organization led by a team of experts toour business results and financial position.

collect information and manage all stages of new tankinstallation projects, from receiving orders through to(3)Impact on securing and developing humanconstruction work, in order to execute projects moreresources

quickly and efficiently.

The TKK Group recognizes that securing and developing
human resources are two of our most important issues,

The TKK Group conducts some operations overseas,

and that any drain of human resources and increasing

primarily by the Plant & Machinery Business. Further, ourrecruitment costs could affect our business activities.

consolidated subsidiary in Indonesia works on local
construction projects and processes steel materials,

Therefore, through several initiatives, we have broadened

including steel used for storage tanks. Our local

our hiring practices to recruit a more diverse range ofsubsidiary in Malaysia maintains baggage handling

employees and have worked hard to improve employee

equipment at local airports and maintains equipment at

retention by creating a more comfortable workplace

local petrochemical plants. These overseas operations

environment and by being more flexible. For example, we

carry inherent risks, as stated below, and the TKK

have created an action plan to promote women’sGroup’s business results and financial position could beparticipation and advancement in the workplace, and weadversely affected by these risks.

have implemented programs to train and promote female
employees to management positions. We also allow(1) Unexpected changes in laws and regulations

employees to choose staggered work hours, and are(2) Political and economic instability

striving to improve the rate of taking paid leave as well(3) Difficulties in securing human resources

as male employees taking childcare leave. As a result of(4) Tax system revisions that could be unfavorable tothese initiatives, the Company was certified as a Health

TKK Report 2022 Financial Section

3

Management® Excellent Corporation 2022 (Large

technologies and leadership.

Corporation Category).
However, as the lifecycle of products and technologies
In addition, the Company opened an education center atbecomes shorter and shorter, any delays in meeting

the Chiba Plant to improve employees’ skills and provide

market requests could result in a decline in the Group’s

safety training for our Logistics Solutions Businesscompetitiveness, adversely affecting our business results

operations.

and financial position over the medium to long term.

(4) Impact of intensifying competition for orders

On a consolidated basis, the Group owns both tangible

The TKK Group’s main businesses are order based,

and intangible fixed assets, and continually monitors

exposing us to severe competition for orders, so

financial performance as a means to forecast when it

unreasonable downward pressure on profitability could

may be difficult to secure returns on investments in theseadversely affect our business results and financial

assets. If we determine that these assets are lessposition. Further, customer policies and plans, changes

profitable or cannot generate sufficient cash flow due toin the business environment of the industry, and industry

significant changes in the operating environment or

restructuring could affect our ability to obtain orders.

business situation, we might record an impairment loss
on the assets, which could negatively affect our

In response to these risks, in the Logistics Solutions

consolidated financial results and financial condition.

Business we are expanding our customer areas in Japanand overseas, and providing optimal solutions by flexibly(5) Risks related to the launch of new businesses

introducing outside technologies, while at the same time

For a long time, the TKK Group has been developing two

promoting in-house production and standardized

main business segments: Logistics Solutions and Plant &products to strengthen price competitiveness. We are

Machinery. So far, these two businesses havetaking on other initiatives, such as revamping our internal

underpinned the Group’s earnings in a complementary

systems, to further improve the efficiency of ourway, but we recognize that fluctuations in theoperations.

environmental surrounding these businesses are large
and the volatility of earnings is high.

In the Plant & Machinery Business, as the severebusiness environment drags on, we are improving andTo mitigate this risk, we are pursuing opportunities todeveloping our core technology for tank EPC

establish a third main business segment through all(engineering, procurement, construction) contracts, andavailable means, including mergers, acquisitions, setting

are working to obtain orders by taking advantage of ourup corporate venture capital, and collaborations withsuperior quality, as well as expanding our businessstartups. If, however, a lengthy amount of time is taken

domains through overseas subsidiaries.

to launch a third mainstay business segment, theGroup’s business results and financial position could be

Furthermore, with intense competition for orders, thenegatively affected.

TKK Group develops a wide range of technologies by

4collaborating with domestic and overseas companies(6) Impact on occupational health and safetythat have leading technologies, by partnering withThe TKK Group considers safety to be our highest

startups using corporate venture capital, and throughpriority. Under our Occupational Safety and Healthjoint research with universities and research institutes.

Policy, we strive to ensure and improve the health andWith these initiatives, the Group intends to continuallysafety of our employees by acquiring and renewing

increase our value and contribute to the prosperity of

OHSAS 18001 and ISO 45001 certifications, establishingsociety based on our management vision, which focusesa supervisory department directly under the president,

on providing innovative solutions through cutting-edgeholding group safety meetings, conducting on-site

TKK Report 2022 Financial Section

patrols, and maintaining and improving safety systems,

than-expected disaster could have a significant impact

including at partner companies.

not only on the health of employees but also on theoperation of our plants, and although appropriate

However, in the event of problems or an accident, evencoverage is taken out through non-life insurance, thethough countermeasures have been taken, they could

direct and indirect damage and recovery costs could be

not only interfere with plant operations and customer

larger than anticipated, which would adversely affect ourservice, but could also lead to compensation forbusiness results and financial position.

damages, criminal penalties, administrative punishment,
and the loss of social trust, which could affect our

In right of the recognition that the impact of the global

business activities and financial position.

spread of COVID-19, which began in 2020, poses risks
at many levels, the TKK Group has issued infection(7) Compliance risks

prevention guidelines, compiled a manual for dealing

The TKK Group operates in the field of social

with practical situations, and put measures in place toinfrastructure, a field that cannot exist without the trust

prevent the spread of infection. Human resourceof society. We recognize that compliance with laws andsystems were updated to allow remote working andregulations is one of the most important fundamentals of

encourage paid days off, and improvements were madetrusted business operations.

to IT systems, such as electronic application systems
and cloud storage, to facilitate the changes in workplace

Therefore, in addition to putting in place anconditions.

organizational structure, such as of setting up theCompliance Committee and appointing supervisors, the(9) Impact of information security and maintaining

Company has established regulations, including TKK

the information infrastructureGroup Charter of Corporate Behavior and we are

The TKK Group handles, while doing business, a range

promoting initiatives to maintain compliance, such asof confidential information, including customer andensuring all Group directors and employees are fully

technical information. To strengthen the management of

informed of their social responsibility and public mission.

this information, we have organized the Information
Security Committee to thoroughly communicate the

However, in the unlikely event that laws and regulations

importance of information security, for instance throughin Japan or overseas are violated, large surcharges andemployee education, and to implement security

damages could occur, which would not only adversely

measures for information systems.

affect the Group’s business results and financial position
but would also reduce the public’s trust in the Group

However, cyberattacks, including via computer viruses,

and affect our business continuity.

could interfere with the functioning of these information
systems, and if confidential information were lost or(8) Risks related to natural disasters, epidemics, etc.

leaked, it could damage the Group’s reputation for

To prepare for fires, earthquakes, large-scale naturalreliability and affect business activities.

disasters, and epidemics, the TKK Group has written abusiness continuity plan (BCP) manual, and we have

The Group uses the Box file-sharing service andtaken all necessary steps for business continuity, suchpassword protection (to block email file attachments) toas establishing a contact system, building up stockpiles

guard against cyberattacks, effectively manageof emergency supplies, conducting seismic

intellectual property, and to safeguard the privacy ofreinforcement work, and setting up shelters at major

customers and business partners.

manufacturing and development bases in Japan.
Moreover, while the Group aims to transform the
However, serious physical injury caused by a greater-business model through IT, including by automating and

TKK Report 2022 Financial Section

5

streamlining operations through robotic process

foreign currency-denominated transactions and theautomation (RPA), and by introducing businessamount of assets held in foreign currencies are relatively

standardization systems, if we lag behind in these digital

small, but the unexpected fluctuation could adverselytransformation (DX) initiatives, we will not be able toaffect the Group’s business results and financial position

establish a competitive advantage and could lose out onin the future.

business opportunities.
b) Fluctuations in interest rates(10) Risks related to market trends

To establish credit for trade receivables and to acquire

In the Logistics Solutions Business, we supply products

fixed assets, the TKK Group secures funding fromand systems mainly for the retail, wholesale, and co-op

financial institutions that consider the balance of short-industries. We also provide baggage handling systems,

and long-term purchasing ratios. Although low interest

primarily to airports in Japan. Consequently, thisrates have continued due to large-scale monetarybusiness segment could be affected if investments ineasing, etc., funding costs could increase if interest rates

logistics facilities slow due to a lower volume in logistics

rise, which could adversely affect the Group’s

as a result of a recession or declining birthrate and aging

performance and financial position.

population or trends in demand for air travel. We are
therefore intensifying our business operations using AIc) Valuations of held securities

and IoT technologies.

The TKK Group holds securities other than unlisted
shares and redetermines their value based on share

In the Plant & Machinery Business, we supply tanks forprices as of the final day of each fiscal quarter. If share

LNG plants and refineries, as well as perform

prices fall significantly, the Group’s business results andmaintenance on existing crude oil tanks, etc. Thisfinancial position could be adversely affected.

segment’s results could be adversely affected due to aplant owner discontinuing, postponing, or making major

Disclosing Information on Climate-related Risks andrevisions to investment plans due to global economic

Opportunities Based on TCFD Recommendations

trends. Other factors that could affect business results

In fiscal 2018, the TKK Group declared that the mostare the economic and social conditions of oil and gas

important material issue for increasing our value

producing and consuming countries; trends in energy

sustainably was to respond to changes in the businessand environmental policies in each country; trends inenvironment caused by climate change. Recognizing

crude oil and LNG prices; and other factors. We arethat initiatives for combatting climate change pose boththerefore strengthening initiatives that improve theoperational risks and business opportunities, the Group

profitability of maintenance projects, in this way

began disclosing information about these measures andestablishing a business structure that is resistant totheir progress. Specifically, we have been disclosing thefluctuations in orders and that secures a stable source offollowing two types of climate-related information andincome.

data:

In addition, risks such as the following are possible due

1. Disclosure of targets for reducing greenhouse gases

to a deterioration of the economic environment:(GHGs) with the goal of achieving carbon neutrality
The TKK Group publicly disclosed targets for reducinga) Fluctuations in foreign exchange rates

GHGs through business activities.

The TKK Group’s business activities include theoverseas manufacture of products, sales of materials,

GHGs to be reduced

and construction work, and transactions that are mainly

Scope 1 and 2 GHG emissions from Toyo Kanetsu andconducted in U.S. dollars. Currently, we view the risk ofour consolidated subsidiaries worldwide

fluctuations in foreign exchange rates as low because

6

TKK Report 2022 Financial Section

Scope 1 emissions: Direct emissions of GHGs from		

when drafting and implementing business plans.

inhouse fuel consumption

Strategy
Scope 2 emissions: Indirect emissions of GHGs fromThe TKK Group’s management has determined climate-		related risks and opportunities that could have apurchased electricity and heatsignificant impact on operations and has analyzed
GHG reduction targets

several climate scenarios.

Achieve carbon neutrality by 2050
50% reduction of GHGs by 2030 compared with

With a comprehensive scope, analyses are based on two

amounts in fiscal 2019

climate change scenarios (average temperature
increases of less than 2oC and 4oC by the end of this

The TKK Group intends to become carbon neutral bycentury compared with preindustrial levels). We have2050 by reducing GHG emissions, including energy

also included scenarios published by the International

conservation and employing renewable energy sources.

Energy Agency, the Intergovernmental Panel on Climate

We will also work to reduce Scope 3 emissions across

Change, and other organizations. These scenarios

the value chain in partnership with suppliers andcovered up to 2050 and were divided into three periods:

customers.

short term (over the next three years), medium term (until2030), and long term (until 2050).

Scope 3 emissions: Indirect emissions of GHGs (aside		

from Scopes 1 and 2) from

Risks to and opportunities for the TKK Group’s		

operations within the supply chain

operations and financial performance were examinedbased on the two earlier mentioned scenarios (above).

2. Disclosure of information based on the

By 2050, opportunities are expected to have a larger

recommendations of the Task Force on Climate-overall financial impact than risks on the Group’s three

Related Financial Disclosures (TCFD)

main businesses (Logistics Solutions, Next-Generation

The Company has endorsed the TCFD recommendations

Energy Development, and Plant & Machinery), which

and. with the assistance of a team of outside experts.

accounted for about 85% of consolidated net sales in

has disclosed information based on the framework of the

fiscal 2020.

recommendations.
In the Logistics Solutions Business segment,

Governanceopportunities are expected to significantly outweigh risks

Business risks that could affect the TKK Group, including

as demand for labor- and energy-saving systems at

climate-related risks, are overseen by the Company’slogistics facilities is projected to continue growing due to

Risk Management Committee that is chaired by athe environmental impact on logistics facilities caused bydirector designated by the Board of Directors. This

climate change, as well as the impact of the aging ofcommittee formulates and executes all necessary plans.

Japan’s population.

The Company’s Risk Management Office serves as thecommittee’s executive office.

For the Plant & Machinery Business segment, althoughdemand for maintaining oil and gas storage tanks is

Members of the Risk Management Committee areforecast to gradually decline, these tanks are expected

appointed from among executive officers (not currently

to be replaced with others for storing methylcyclohexane

serving as directors) who manage the operations of each(MCH) and ammonia, expected to be next-generation

business division. This framework enables the committee

energy sources, driving up demand for upgrading andmembers to share information about measures taken by

maintenance.

business divisions and to consider climate-related issues

TKK Report 2022 Financial Section

7

For the Next-Generation Energy Development Business

Scope 3 emissions for the entire TKK Group worldwide

segment, while demand for upgrading oil and gas(tonnes of CO2 equivalent)storage tanks is on the decline due to fossil fuel348,949* in FY2020

restrictions, the decline is expected to be offset bydemand for new tanks that store hydrogen and ammonia* Of the total, 198,684 fell under Category 11, “use offuel, considered alternative energy sources for the next

sold products,” and 128,769 fell under Category 1,

generation, as well as for liquid carbon dioxide.

“purchase of goods and services.” Combined, the results
for these two categories accounted for 94% of Scope 3

Based on the 4o C temperature increase scenario,

emissions.

among the most acute physical risks is a high probabilityof water damage from swollen rivers, typhoons, andAdding up all the fiscal 2020 results (above), total GHG

floods impacting the operation of facilities in the supply

emissions across the supply chain came to 353,942

chain. Rising sea levels, among the most impactful

tonnes of CO2 equivalent, of these Scope 1 and 2

physical risks, could by the end of the century affect ouremissions (4,993) made up 1.4% and Scope 3 emissions

business sites. However, an analysis up to 2050

(348,949) accounted for 98.6%.

concluded that the financial impact would be minor. The
TKK Group will take steps to mitigate the impact of theseIn fiscal 2021, electricity consumption accounted forphysical risks on operations and manufacturing plants.

57% of Scope 1 and 2 emissions, while gasoline anddiesel oil consumption accounted for 33%. Accordingly,

Risk Management

the Group recognizes the need for the following

As the operating environment becomes increasingly

measures to reduce GHG emissions:complex and diverse, the TKK Group is placing more
importance on effectively managing risks that could havea substantial impact on our businesses, and has
specified advances in risk management as a material
issue for management.

・Installing solar panels onsite for producing energy
・Procuring electricity from zero-emission andrenewable-energy sources
・Switching over company vehicles to EVs
・Introducing energy-saving equipment

The Risk Management Committee meets at least twice ayear and periodically reports to the Board of Directors

The TKK Group has examined initiatives for eachand management councils. The councils handle

category of Scope 3 emissions, such as reducing

important discussions and make decisions based on theelectricity consumption over the product lifecycle. We

reports and findings of the committee. The Board of

are also working with suppliers and customers to

Directors reviews reports on the committee’s anddevelop and implement measures for reducing GHG

councils’ discussions and decisions, then oversees theemissions.

execution and progress of the Group’s policies as well
as plans for responding to climate change.

With the goal of accelerating new capital investment toincrease the effectiveness of our initiatives for reducing

Metrics and Targets

GHG emissions, the Group introduced an internal carbon

The TKK Group’s GHG emissions across the supply

pricing system in fiscal 2022. By using specified internal

chain have been calculated based on the standards ofcarbon prices for calculations of reference costs when

the Greenhouse Gas Protocol:

considering capital investment plans, the Group is
integrating this system into investment decisions, while

Combined Scope 1 and 2 emissions for the entire TKKGroup worldwide (tonnes of CO2 equivalent)
5,276 in FY2019, 4,993 in FY2020, and 5,142 in FY2021

8

TKK Report 2022 Financial Section

promoting investments in decarbonization.

TKK Report 2022 Financial Section

9

Consolidated financial statements, etc.
(1) Consolidated financial statements(i) Consolidated balance sheet(Millions of yen)Previous fiscal period(As of March 31, 2021)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsInvestments 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
Buildings and structures, net
Machinery, equipment and vehicles, net
Tools, furniture and fixtures, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

10

TKK Report 2022 Financial Section*1

Current fiscal period(As of March 31, 2022)

7,413

*1

8,759

13,489*2

25,327

550
57
6,732
2,523
863
(13)
31,616*4*4*4*4, *5

*3

4,142
716
284
10,122356
18
15,641
481
9,909
42
452
847
(227)
11,024
27,14758,764

220
32
795
2,550
670
(24)
38,332*4*4*4*4, *5

*3

4,157
773
376
10,374608
31
16,321
667
7,663
234
449
847
(224)
8,970
25,95864,290(Millions of yen)Previous fiscal period(As of March 31, 2021)
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Accrued expenses
Income taxes payable
Contract liabilities
Provision for bonuses
Provision for loss on order received
Provision for warranties for completed construction
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

*4
*4

*4

*5

*5

1,091
3,620
8
3,778
914
2,354
259
30
348
681
13,086
1,000
4,580
2,138
1,095
107
230
41
9,193
22,280Current fiscal period(As of March 31, 2022)

*4

*4

*5

1,761
8,120
–
4,887
774
655
434
–
299
1,269
18,202
1,000
4,580
1,644
1,095
392
799
98
9,610
27,813

18,5801,273
16,148(2,933)33,06818,5801,273
17,533(2,936)34,450

3,937
9
106
(833)
195
3,415
0
36,48458,764

2,632
3
106
(878)
160
2,024
2
36,47764,290*5

TKK Report 2022 Financial Section

11

(ii)

Consolidated statement of income and comprehensive income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Gain on sale of scraps
Subsidy income
Reversal of allowance for doubtful accounts
Other
Total non-operating income
Non-operating expenses
Interest expenses
Bond issuance costs
Commission for purchase of treasury shares
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Other
Total extraordinary income
Extraordinary losses
Loss on valuation of investment securities
Loss on revision of retirement benefit plan
Impairment losses
Loss on disaster
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable toProfit attributable to owners of parent
Profit (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
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

12

TKK Report 2022 Financial Section

Previous fiscal year
(From April 1, 2020
to March 31, 2021)
43,617*2
34,369
9,247*3, *4
6,623
2,623

*5

*6

(Millions of yen)
Current fiscal year
(From April 1, 2021
to March 31, 2022)*1
59,177*2
49,016
10,161*3, *4
7,352
2,808

14
259
–
33
104
84
79
576

6
273
163
77
107
0
109
737

59
23
17
37
11
147
3,053

62
–
–
–
8
71
3,474

9
913
65
989

50
333
14
398

73
–
1,047
13
15
1,149
2,892
1,199
(83)
1,115
1,777

96
59
–
–
0
157
3,716
1,331
50
1,382
2,334

1,777
(0)

2,334
0

1,271
9
(104)
360
1,536
3,313

(1,305)
(6)
(44)
(34)
(1,390)
943

*6

3,314

943

(0)

0

(iii) Consolidated statement of changes in equity
Previous fiscal year (From April 1, 2020 to March 31, 2021)(Millions of yen)
Shareholders’ equity
Total shareholders’equityShare capital

Capital surplus

Retained earnings

Treasury shares

18,5801,273

15,224(2,355)

Balance at beginning of period

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 shares

55

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 Deferred gains Revaluation
availableor losses onreserve forfor-salehedgeslandsecurities
Balance at beginning of period

2,666

0

106

Foreigncurrencytranslation
adjustment
(729)

Total
Remeasureaccumulated
ments ofother
definedcomprehensive
benefit plansincome(165)

Noncontrolling Total net assetsinterests

1,878

1

34,602

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)

1,882

Balance at end of period

3,937

9

106

(833)

195

3,415

0

36,484TKK Report 2022 Financial Section

13

Current fiscal year (From April 1, 2021 to March 31, 2022)(Millions of yen)
Shareholders’ equity
Share capital
Balance at beginning of
periodCapital surplus

18,580Retained earnings

Treasury shares

Total shareholders’equity16,148(2,933)33,068

1,273

Changes during period
Dividends of surplus

(949)

(949)

Profit attributable toowners of parent

2,334

2,334

Purchase of treasury
shares(3)(3)

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

–

–

1,384

(3)

1,381

18,5801,273

17,533(2,936)34,450

Accumulated other comprehensive income
Valuationdifference on Deferred gains Revaluation
availableor losses onreserve forfor-salehedgeslandsecurities
Balance at beginning of period

3,937

9

106

Foreigncurrencytranslation
adjustment
(833)

Total
Remeasureaccumulated
ments ofother
definedcomprehensive
benefit plansincome195

3,415

Noncontrolling Total net assetsinterests

0

36,484

Changes during period
Dividends of surplus(949)

Profit attributable to owners ofparent2,334

Purchase of treasury shares
Net changes in items otherthan shareholders’ equity

14(3)(1,305)

(6)

–

(44)

(34)

(1,390)2(1,388)

Total changes during period(1,305)

(6)

–

(44)

(34)

(1,390)2(7)Balance at end of period

2,632

3

106

(878)

160

2,024

2

36,477TKK Report 2022 Financial Section

(iv) Consolidated statement of cash flows(Millions of yen)Previous fiscal year
(From April 1, 2020
to March 31, 2021)
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Impairment losses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Increase (decrease) in provision for loss on order
received
Increase (decrease) in provision for warranties forcompleted construction
Interest and dividend income
Interest expenses
Loss on disaster
Foreign exchange losses (gains)
Loss (gain) on valuation of investment securities
Loss (gain) on sale of investment securities
Loss (gain) on sale of non-current assets
Loss on retirement of non-current assets
Decrease (increase) in trade receivables and contract
assetsDecrease (increase) in investments in leases
Decrease (increase) in inventories
Decrease (increase) in advance payments to suppliers
Increase (decrease) in trade payables
Increase (decrease) in contract liabilities
Other, net
SubtotalInterest and dividends received
Interest paid
Payments associated with disaster loss
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of non-current assets
Proceeds from sale of non-current assets
Purchase of investment securities
Proceeds from sale and redemption of investment
securities
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Other, net
Net cash provided by (used in) investing activities

Current fiscal year
(From April 1, 2021
to March 31, 2022)

2,892
776
–
1,047
(61)
(39)
94

3,716
745
1
–
7
40
(66)

(211)

(30)

(41)

(48)

(273)
59
13
97
73
(913)
(9)
4

(279)
62
–
(166)
96
(333)
(50)
0

1,865

(10,362)370(2,134)
(228)
(785)
(436)
(54)
2,104
273
(62)
(28)
(804)
1,482

330
5,953
231
1,243
(1,782)
916
225
279
(63)
–
(1,539)(1,097)

*2

(102)
102
(1,131)
11
(470)

(102)
102
(1,013)
0
(43)

1,238

644

–

(619)

12
(338)

200
(830)

TKK Report 2022 Financial Section

15

(Millions of yen)Previous fiscal year
(From April 1, 2020
to March 31, 2021)
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-controllingshareholders
Dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

16

TKK Report 2022 Financial Section*1

Current fiscal year
(From April 1, 2021
to March 31, 2022)(4,229)
100
(619)
1,000
(583)
5

4,164
–
(8)
–
(3)
–

–

2

(850)
(5,176)

(945)
3,208

(59)

64

(4,093)
11,402
7,309

1,345
7,309
8,654

*1

NotesBasis of presenting the consolidated financial statements
The accompanying consolidated financial statements of the Company and its domestic consolidated subsidiaries
are prepared on the basis of accounting principles generally accepted in Japan, which are different in certain
respects as to application and disclosure requirements of International Financial Reporting Standards, and arecompiled from the consolidated financial statements prepared by the Company as required by the Financial
Instruments and Exchange Act of Japan. The accounts of overseas consolidated subsidiaries are based on theirfinancial statements prepared in conformity with generally accepted accounting principles and practices prevailingin the respective countries in which the subsidiaries are incorporated.
Significant accounting policies for preparation of the consolidated financial statements
1. Disclosure of scope of consolidation
Number of consolidated subsidiaries: 12 companies
Names of major consolidated subsidiaries are omitted since those names are described in “TKK Group Companies.”
Having acquired shares of Eco Analysis Corporation and newly established TKK Plant Engineering K.K., theCompany has accordingly included them in the scope of consolidation effective from the current fiscal year.
2. Disclosure about application of the equity method
Not applicable
3. Disclosure about fiscal years, etc. of consolidated subsidiaries
Of the Company’s consolidated subsidiaries, Kankyo Research Institute Inc., Toyo Kanetsu Corporate Venture
Investment Partnership, Toyo Kanetsu Corporate Venture Fund Ⅱ, PT Toyo Kanetsu Indonesia, Toyo Kanetsu
Singapore Pte. Ltd. and Toyo Kanetsu (Malaysia) Sdn. Bhd. have a closing date of December 31. In preparation of
the consolidated financial statements, their financial statements as of December 31 are used. However, for majortransactions that occurred between that date and the consolidated balance sheet date, the necessary adjustments are
made in the consolidated financial statements.
4. Disclosure of accounting policies(1) Accounting policy for measuring significant assets(i) Securitiesa) Held-to-maturity bonds: Stated at amortized cost (straight-line method)b) Available-for-sale securities
Securities other than shares that do not have a market value are stated at fair value (valuation differences
are directly charged or credited to net assets, and cost of securities sold is determined by the movingaverage method).
Shares that do not have a market value are valued at cost determined by the moving-average method.
(ii)

Derivatives
Derivatives are valued at fair value.

(iii) Inventoriesa) Finished goods: Primarily, at cost using the first-in first-out method(The value on the balance sheet is written down to reflect a decline in profitability.)b) Work in process: Primarily, at cost using the specific identification method(The value on the balance sheet is written down to reflect a decline in profitability.)c) Raw materials: Primarily, at cost using the weighted-average method(The value on the balance sheet is written down to reflect a decline in profitability.)

TKK Report 2022 Financial Section17

(2) Accounting policy for depreciation of significant assets(i) Property, plant and equipment
The Company and its domestic consolidated subsidiaries use the declining-balance method, and overseas
consolidated subsidiaries use the straight-line method in accordance with provisions of accounting standards intheir respective countries.
However, the Company and its domestic consolidated subsidiaries use the straight-line method to depreciatebuildings (excluding facilities attached to buildings) acquired on or after April 1, 1998, and facilities attached
to buildings and structures acquired on or after April 1, 2016.
The estimated useful lives of major items are as follows:
Buildings and structures
3 to 57 years
Machinery and equipment
2 to 13 years(ii) Intangible assets
Intangible assets are amortized using the straight-line method.
Software for internal use is amortized using the straight-line method over the estimated useful life as internallydetermined (5 years).
(3) Accounting policy for significant provisions(i) Allowance for doubtful accounts
To cover losses from bad debts for trade receivables, loans receivable and others, an allowance for doubtful
accounts is provided based on historical experience of bad debts for general receivables. For specific receivables
such as highly doubtful receivables, the collectability is individually considered and the estimated amount of
uncollectible accounts is provided as the allowance.
(ii) Provision for bonuses
To pay bonuses to employees, out of the estimated amount to be paid in the following fiscal year, an amountattributable to the current fiscal year is recorded.
(iii) Provision for loss on order received
To make provision for losses on orders received, as for existing construction, for which an amount of loss canbe reasonably estimated at the end of the current fiscal year, an expected amount of loss in future is recorded as
the provision.
(iv) Provision for warranties for completed construction
To cover costs of warranty against defects and after-sales service for completed construction, an amount isrecorded based on the historical loss rate as well as consideration of an amount for individual construction thatis expected to incur in future at the end of the current fiscal year.
(4) Method of accounting for retirement benefits(i) Method of attributing estimated retirement benefits to periods
For the purpose of attributing estimated retirement benefits over the period up to the end of the current fiscal
year in the calculation of retirement benefit obligations, the benefit formula method is applied.
(ii) Method of amortizing actuarial gain or loss and past service cost
Past service costs are recorded as an expense in the year they are incurred.
With regard to actuarial gain or loss, the amount is amortized by the straight-line method over a certain term
within the average remaining service period of the eligible employees (5 years) for each applicable fiscal year,
and expensed from the year following the year in which the gain or loss is recognized.
(5) Accounting policies for significant revenues and expenses
The Group enters into long-term construction contracts mainly in the Logistics Solutions Business and the Plant &Machinery Business, such that entail assuming obligations to deliver merchandise and finished goods such as
logistics facilities and storage tanks pursuant to such construction contracts. Given that costs with respect to any
such construction contract are deemed to arise in proportion to appreciation of customer-controlled assets, revenue
in relation to a construction contract is recognized according to the degree of progress thereof. The degree ofprogress is calculated as the proportion of construction cost incurred to date relative to total estimated cost under
the construction contract.
Revenue is recognized using the cost recovery method in cases where recovery of incurred costs is likely but
reasonable estimation regarding the degree of progress is not possible.
In addition, no adjustments are made to significant financing components because consideration for business
transactions is mainly received within 180 days of having satisfied a performance obligation.

18

TKK Report 2022 Financial Section

(6) Accounting policy for hedging(i) Method of hedge accounting
In principle, the deferral accounting is applied. The allocation method is applied to forward foreign exchange
contracts that meet requirements thereof, and the exceptional treatment is applied to interest rate swaps that meetrequirements thereof.
(ii) Hedging instruments and hedged items
Hedging instruments: ......... Forward foreign exchange contracts, Interest rate swaps
Hedged items: ..................... Forecast transactions denominated in foreign currencies and borrowings(iii) Hedging policy
In accordance with the “Rules on Handling of Derivative Transactions” established by the Company, theCompany and its consolidated subsidiaries (collectively, the “Group”) do not enter into any derivativetransaction for speculative purposes but use derivative transactions only to hedge exchange rate fluctuation risk
and interest rate fluctuation risk.
(iv) Method of assessing the hedging effectiveness
The Group confirms effectiveness by comparing and examining cash flows of hedging instruments and hedged
items in advance. However, the Group omits assessment of effectiveness on interest rate swaps to which the
exceptional treatment is applied.
(7) Scope of cash and cash equivalents in consolidated statement of cash flows
Cash and cash equivalents include cash in hand, readily available deposits and short-term investments withmaturities of three months or less from the purchase date whose value is not subject to significant fluctuation risk.
Notes - Significant accounting estimates(Construction contracts for which revenue is recognized based on degree of progress)(1) Amount recognized in the consolidated financial statements for the current fiscal year
(Millions of yen)Previous fiscal year
Net sales

8,445

Current fiscal year
20,556(2) Information on the content of significant accounting estimates related to identified items
With respect to construction contracts for which revenue is recognized based on degree of progress, the Group
records net sales based on the progress rate calculated as the proportion of construction cost incurred corresponding
to value of work done at the end of the current fiscal year, relative to the total amount of estimated cost of
construction work.
The estimated amount of total cost of construction work has been determined on the basis of management’s best
estimate and judgments based on past experience and available information collected as well as individual work
specifications. However, changes to original estimates may occur due to price fluctuations in the market, changes
to specifications, natural disasters and others, and such changes may have a significant effect on the amountrecognized in the consolidated statement of income for the next fiscal year.
Notes - Changes in accounting policies
1.

Application of the Accounting Standard for Revenue Recognition
The Group has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, issued on
March 31, 2020) and related guidance, effective from the beginning of the current fiscal year. As such, revenue has
been recognized at the point in time when control of promised goods or services is transferred to its customers, atthe amount expected to be received in exchange for such goods or services. This has resulted in changes withrespect to revenue recognition, primarily as follows:(1) Revenue recognition associated with construction contracts
Previously, the percentage-of-completion method was applied to construction showing certainty of performanceon progress made, and the completed-contract method was applied to other construction. However, the methodof revenue recognition for performance obligations satisfied over time has been changed to one whereby theGroup estimates the degree of progress toward satisfying a performance obligation and accordingly recognizes
revenue over time based on such degree of progress. Meanwhile, revenue is recognized using the cost recovery

TKK Report 2022 Financial Section19method in cases where recovery of incurred costs is likely but reasonable estimation regarding the degree ofprogress is not possible.
(2) Transactions involving sale and repurchase
With respect to transactions involving sale and repurchase, the Group previously derecognized items suppled
for value, but has changed to a method whereby such supplied items are not derecognized in cases where theCompany has assumed an obligation to repurchase such supplied items.
The Group has applied the Accounting Standard for Revenue Recognition and related guidance in accordancewith the transitional treatment stipulated in the proviso to paragraph (84) of the Accounting Standard for
Revenue Recognition. This has involved accordingly applying the new accounting policies effective from the
beginning balance of the current fiscal year, thereby adjusting retained earnings at the beginning of the current
fiscal year to reflect the cumulative effect of retroactively applying the new accounting policies to periods prior
to the beginning of the current fiscal year.
As a result, net sales increased by ¥3,290 million and cost of sales increased by ¥3,290 million in the current
fiscal year. There was no effect on the beginning balance of retained earnings.
In applying the Accounting Standard for Revenue Recognition and related guidance, “notes and accounts
receivable - trade,” which had been presented under “current assets” on the consolidated balance sheet of theprevious fiscal year, has been included in “notes and accounts receivable - trade, and contract assets” effectivefrom the current fiscal year. In addition, “advances received,” which had been presented under “current
liabilities,” has been included in “contract liabilities” effective from the current fiscal year. Moreover, notes withrespect to “Notes - Revenue recognition” in Notes pertaining to the previous fiscal year have not been presented
in accordance with the transitional treatment stipulated in paragraph (89)-3 of the Accounting Standard for
Revenue Recognition.
2.

Application of the Accounting Standard for Fair Value Measurement and related guidance
The Group has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, issued
on July 4, 2019) and related guidance, effective from the beginning of the current fiscal year. This has involved
prospectively applying the new accounting policies stipulated in the Accounting Standard for Fair Value
Measurement and related guidance in accordance with the transitional treatment stipulated in paragraph (19) of the
Accounting Standard for Fair Value Measurement and paragraph (44)-2 of the “Accounting Standard for Financial
Instruments” (ASBJ Statement No. 10, issued on July 4, 2019). This has no effect on the consolidated financial
statements.
In addition, the “Notes - Financial instruments” in Notes state matters regarding the breakdown of financial
instruments by each fair value level. Among those notes, however, matters pertaining to the previous fiscal year
have not been presented in accordance with the transitional treatment stipulated in paragraph (7)-4 of the“Implementation Guidance on Disclosures about Fair Value of Financial Instruments” (ASBJ Guidance No. 19,
issued on July 4, 2019).

Notes - Changes in presentation(Consolidated statement of income and comprehensive income)“Gain on sale of scraps,” which was included in “other” under non-operating income until the previous fiscal year,
has been presented separately from the current fiscal year since the significance of the amount has increased.
In the previous fiscal year, “gain on sale of scraps” was ¥33 million.
Notes - Changes in accounting estimates(Changes in accounting estimates related to asset retirement obligations)With respect to asset retirement obligations pertaining to costs of removing asbestos from commercial buildings, theGroup has changed its estimate of asbestos removal costs in the current fiscal year upon having gained new
information such as that involving an increase in construction costs pertaining to asbestos removal.
Due to this change in estimate, the balance of asset retirement obligations has been increased by ¥427 million relative
to the amount prior to the change.
Meanwhile, operating profit, ordinary profit, and profit before income taxes have each decreased by ¥427 million due
to the change in estimate.

20

TKK Report 2022 Financial Section

Notes - Additional information
1. Accounting estimates in association of the spread of COVID-19
With regard to the impact of COVID-19, although under the current situation, it is difficult to predict how it will
spread in the future and when the spread will end, the Group thinks at present that impact on accounting estimatesfor recoverability of deferred tax assets and others will be limited.
However, if the timing of when the spread of COVID-19 will come to an end and its impact on economic
environment change, the financial position and operating results may be affected.
2. Transaction of granting the Company’s own shares to Directors, etc. through a trust
The Company has introduced a performance-linked share-based compensation using a trust for Directors(excluding Directors who are Audit and Supervisory Committee Members and outside Directors), and Managing
Officers who are not Directors and other Executive Officers in a higher rank (hereinafter collectively referred to as“Directors, etc.”) from the fiscal year ended March 31, 2020, for the purpose of increasing the incentive to improve
the Company’s medium- to long-term performance and enhance the corporate value more than ever by clarifying
the linkage between remuneration of Directors, etc., and the Company’s medium- to long-term performance andstock value, and sharing profits and risks resulting from the linkage with stock price between Directors, etc. andshareholders.
To the accounting treatment for this trust agreement, “Practical Solution on Transactions of Delivering theCompany’s Own Stock to Employees etc. through Trusts” (ASBJ PITF No. 30, issued on March 26, 2015) isapplied correspondingly.
(1) Outline of transaction
Money is entrusted to a trust designated by the Company (hereinafter referred to as the “Trust”), which acquires
shares of the Company. Points are given to each Director, etc. at the end of each fiscal year of the medium-termbusiness plan in accordance with the Share Delivery Regulations established by the Company’s Board of Directors,
and shares of the Company are delivered through the Trust in a certain period during the tenure of the Director, etc.
specified in the Regulations for the Provision of Shares for the Performance-linked Share-based Remuneration
Plan for officers, or at the time of retirement of the Director, etc. in the number corresponding to the number ofpoints accumulated by then.
(2) The Company’s shares remaining in the Trust
Shares of the Company remaining in the Trust have been recorded at the book value in the Trust (excluding theamount of incidental costs) as treasury shares in net assets. The book value and number of these treasury shares forthe previous fiscal year were ¥144 million and 81,200 shares, respectively, and for the current fiscal year were¥144 million and 81,200 shares, respectively.
Notes - Consolidated balance sheet*1.

The following amounts have been restricted by a bank in return for its issuing a bank guarantee, which wasprovided by the Company:
Previous fiscal year
(As of March 31, 2021)

Cash and deposits*2.

¥1 million

Current fiscal year
(As of March 31, 2022)¥1 million

Of the amount stated for notes and accounts receivable - trade, and contract assets, amounts of receivables fromcontracts with customers are as follows:
Current fiscal year
(As of March 31, 2022)

Notes receivable - trade
Accounts receivable - trade
Contract assets¥673 million
9,011
15,642TKK Report 2022 Financial Section

21

*3.

Accumulated depreciation of property, plant and equipment are as follows:
Previous fiscal year
(As of March 31, 2021)

Current fiscal year
(As of March 31, 2022)¥11,774 million*4.

¥12,556 million

Assets pledged and liabilities secured

Assets pledged and liabilities secured as collateral are as follows:
Assets pledged
Previous fiscal year
(As of March 31, 2021)
Buildings and structures
Machinery, equipment and vehicles
Tools, furniture and fixtures
Land
Total

Current fiscal year
(As of March 31, 2022)¥267 million
0
0
5,458

[¥267 million][0][0][5,458]¥235 million
0
0
5,458

[¥235 million][0][0][5,458]5,726[5,726]

5,694[5,694]

Liabilities secured as collateralPrevious fiscal year
(As of March 31, 2021)
Short-term borrowings
Long-term borrowings(including current portion of long-termborrowings)
Total

Current fiscal year
(As of March 31, 2022)¥939 million[¥939 million]¥1,670 million[¥1,670 million]

1,980[1,980]1,980[1,980]2,919[2,919]3,650[3,650]In the above table, figures in brackets present mortgages on factory foundation and the relevant debts. The amountsof land are after revaluation.
*5.

In accordance with the “Act on Revaluation of Land” (Act No. 34 promulgated on March 31, 1998), theCompany revalues its land for business use and, as for the valuation difference, records an amount equivalent
to tax relating to the valuation difference as “deferred tax liabilities for land revaluation” in the liabilities section
and an amount after deducting said amount as “revaluation reserve for land” in the net assets section.
- Method of revaluation – The Company revalues the land by the calculation method where a value based on theassessed value of fixed asset tax set forth in Article 2, Item 3 and road rating set forth in Article 2, Item 4 of the“Order for Enforcement of the Act on Revaluation of Land” (Cabinet Order No. 119 promulgated on March 31,
1998) is reasonably adjusted.
- Date of revaluation – March 31, 2002
Previous fiscal year
(As of March 31, 2021)

Difference between the year-end value ofrevaluated land and the book value after therevaluation¥(2,479) million

Current fiscal year
(As of March 31, 2022)¥(2,479) million

Notes - Consolidated statement of income and comprehensive income*1.

Revenue from contracts with customers

Revenue from contracts with customers and revenue other than that from contracts with customers are not statedseparately with respect to net sales. Amounts of revenue from contracts with customers have been presented in “Notes- Revenue recognition, 1. Information on disaggregation of revenue from contracts with customers” of theconsolidated financial statements.
*2.

Provision for loss on order received included in cost of sales
Previous fiscal year
(From April 1, 2020
to March 31, 2021)¥(211) million

22

TKK Report 2022 Financial Section

Current fiscal year
(From April 1, 2021
to March 31, 2022)¥(30) million

*3.

Major components of selling, general and administrative expenses are as follows:
Previous fiscal year
(From April 1, 2020
to March 31, 2021)

Salaries and allowances
Bonuses
Provision for bonuses
Retirement benefit expenses
Provision of allowance for doubtful accounts*4.

Current fiscal year
(From April 1, 2021
to March 31, 2022)¥1,975 million
458
133
215
(5)

¥2,274 million
632
93
101
7

Total of research and development expenses included in general and administrative expenses and manufacturingcosts for the period
Previous fiscal year
(From April 1, 2020
to March 31, 2021)

Current fiscal year
(From April 1, 2021
to March 31, 2022)¥597 million*5.

¥602 million

Impairment losses

Previous fiscal year (From April 1, 2020 to March 31, 2021)
The Company recorded impairment losses on the following asset groups.
(1)

Outline of asset groups on which impairment losses were recognized
Location

Use

Type

Chiba Plant (Kisarazu, Chiba)

Assets for Plant & Machinery
Business

Machinery and other assets

Head Office (Koto-ku, Tokyo)

Same as above

Software and other assets

PT Toyo Kanetsu Indonesia(Batam, Indonesia)

Same as above

Land, machinery, buildings andother assets

Toyo Kanetsu (Malaysia) Sdn. Bhd.
(Bintulu, Malaysia)

Same as above

Land, machinery, buildings andother assets(2) Circumstances leading to recognition of impairment losses
For asset groups of which cash flows arising from operating activities continued, or were expected to continue, tobe negative, the carrying amount was reduced to the recoverable amount, and the reduced amount was recorded as
impairment losses in extraordinary losses.
(3)

Amount of impairment losses and breakdown of the amount by type of major non-current assets
Type

Amount (Millions of yen)

Land

620

Machinery, equipment and vehicles

292

Buildings and structures

100

Tools, furniture and fixtures

18

Intangible assets
Total

(4)

14
1,047

Method of grouping assets

In principle, the Group’s assets for business use are grouped on the basis of the business, and the Group’s idle
assets are grouped by each asset. In addition, as for Head Office and Chiba Plant, the assets are grouped ascommonly used assets.

TKK Report 2022 Financial Section

23

(5)

Method of calculating the recoverable amountThe recoverable amount of this asset group is measured at value in use, and the amount calculated by discounting
future cash flows at weighted average cost of capital of 5.32% is applied.
Current fiscal year (From April 1, 2021 to March 31, 2022)
Not applicable*6.

Reclassification adjustments and tax effects relating to other comprehensive income
Previous fiscal year
(From April 1, 2020
to March 31, 2021)

Valuation difference on available-for-salesecurities:
Amount recorded during the period
Reclassified amountCurrent fiscal year
(From April 1, 2021
to March 31, 2022)¥1,832 million–¥(1,881) million–

Pre-adjustment of tax effectTax effect amount

1,832
(561)

(1,881)
575

Valuation difference on available-forsale securities

1,271(1,305)

Amount recorded during the period

13

(8)

Reclassified amount

–

–

(8)
2
(6)

Deferred gains or losses on hedges:

Pre-adjustment of tax effect13

Tax effect amount(4)

Deferred gains or losses on hedges

9

Foreign currency translation adjustment:
Amount recorded during the period
Reclassified amountPre-adjustment of tax effectTax effect amount

–
(104)
–

Foreign currency translation adjustment(104)

Remeasurements of defined benefit plans, netof tax:Amount recorded during the period

417

(44)
–
(44)
–
(44)

Pre-adjustment of tax effect518

Tax effect amount

(158)

23
(73)
(49)
15

Remeasurements of defined benefit
plans, net of tax

360

(34)

1,536

(1,390)Reclassified amount

Total other comprehensive income

24

(104)

TKK Report 2022 Financial Section

101

Notes - Consolidated statement of changes in equity
Previous fiscal year (From April 1, 2020 to March 31, 2021)
1.
Matters concerning class and total number of issued shares, and class and number of treasury shares
Number of shares at
beginning of period

Number of shares
increased in period

Number of shares
decreased in period(Thousands of shares)
Number of shares at
end of period

Issued shares
Common shares

9,323

–

–

9,323

Total

9,323

–

–

9,323

Common shares (Notes 1, 2, and
3)

874

273

3

1,144

Treasury shares(Notes) 1.
2.
3.

2.

Total
874
273
3
1,144
The number of treasury shares of common shares includes shares of the Company held by the benefit trust for officers(84 thousand shares at beginning of period, 81 thousand shares at end of period).
Total number of treasury shares of common shares increased by 273 thousand shares because of an increase due toacquisition of treasury shares based on a resolution by the Board of Directors of 269 thousand shares and an increase
due to purchase of shares less than one unit of 4 thousand shares.
Total number of treasury shares of common shares decreased by 3 thousand shares due to a disposal of treasury
shares to the benefit trust for officers based on a resolution by the Board of Directors.

Matters concerning dividends(1) Dividends paid
Resolution

Total
dividends

Class of shares

Dividends per
share

Record date

Effective dateOrdinary General Meeting of
Shareholders on June 26,
Common shares¥853 million¥100
March 31, 2020
June 29, 2020
2020
(Note) The total amount of dividends based on a resolution at the Ordinary General Meeting of Shareholders on June 26, 2020
includes dividends on shares of the Company held by the benefit trust for officers of ¥8 million.

(2)

Dividends whose record dates are in the current fiscal year but whose effective dates fall in the next fiscal
year

Resolution

Class ofsharesTotal
dividends

Source ofdividends

Dividends per
share

Record date

Effective dateOrdinary General
Meeting ofCommonRetained¥949 million¥115
March 31, 2021
June 30, 2021
Shareholders on Junesharesearnings
29, 2021(Note) The total amount of dividends based on a resolution at the Ordinary General Meeting of Shareholders on June 29, 2021
includes dividends on shares of the Company held by the benefit trust for officers of ¥9 million.

Current fiscal year (From April 1, 2021 to March 31, 2022)
1.
Matters concerning class and total number of issued shares, and class and number of treasury shares
Number of shares at
beginning of period

Number of shares
increased in period

Number of shares
decreased in period(Thousands of shares)
Number of shares at
end of period

Issued shares
Common shares

9,323

–

–

9,323

Total

9,323

–

–

9,323

Common shares (Notes 1 and 2)

1,144

1

–

1,145

Treasury shares(Notes) 1.
2.

Total
1,144
1
–
1,145
The number of treasury shares of common shares includes shares of the Company held by the benefit trust for officers(81 thousand shares at beginning of period, 81 thousand shares at end of period).
The total number of treasury shares of common shares increased by one thousand shares because of an increase due
to purchase of shares less than one unit.

TKK Report 2022 Financial Section

25

2.

Matters concerning dividends(1) Dividends paid
Resolution

Class of shares

Total
dividends

Dividends per
share

Record date

Effective dateOrdinary General Meeting of
Shareholders on June 29,
Common shares¥949 million¥115
March 31, 2021
June 30, 2021
2021
(Note) The total amount of dividends based on a resolution at the Ordinary General Meeting of Shareholders on June 29, 2021
includes dividends on shares of the Company held by the benefit trust for officers of ¥9 million.

(2)

Dividends whose record dates are in the current fiscal year but whose effective dates fall in the next fiscal
yearClass ofsharesResolution

Total
dividends

Source ofdividends

Dividends per
share

Record date

Effective dateOrdinary General
Meeting ofCommonRetained¥1,197 million¥145
March 31, 2022
June 29, 2022
Shareholders on Junesharesearnings
28, 2022(Note) The total amount of dividends based on a resolution at the Ordinary General Meeting of Shareholders on June 28, 2022
includes dividends on shares of the Company held by the benefit trust for officers of ¥11 million.

Notes - Consolidated statement of cash flows*1

Reconciliation of ending balance of cash and cash equivalents with account balances on the consolidated balance
sheet
Previous fiscal year
(From April 1, 2020
to March 31, 2021)

Current fiscal year
(From April 1, 2021
to March 31, 2022)

Cash and deposits
Time deposits with maturity over 3 months
Restricted deposits¥7,413 million
(102)
(1)

¥8,759 million
(102)
(1)

Cash and cash equivalents

7,309

8,654

*2

Significant non-cash transactions
Newly recorded asset retirement obligations
Previous fiscal year
(From April 1, 2020
to March 31, 2021)

Asset retirement obligations

Current fiscal year
(From April 1, 2021
to March 31, 2022)–

572

Notes - Leases(Borrower)
Operating lease transactions
Future lease payments under non-cancelable operating leases

Within 1 year
Over 1 year
Total

26

TKK Report 2022 Financial Section

Previous fiscal year
(As of March 31, 2021)

Current fiscal year
(As of March 31, 2022)¥65 million¥74 million

213

176

279

251

(Lender)Finance lease transactions(1) The components of investments in leases
Current assets

Lease payments receivable

Previous fiscal year
(As of March 31, 2021)

Current fiscal year
(As of March 31, 2022)¥524 million¥191 million

Estimated residual value

48

38

Amount equivalent to interest income

(21)

(10)

Investments in leases

550

220

(2)

Amounts expected to be collected on lease payments receivable of investments in leases after consolidatedbalance sheet dateCurrent assets(Millions of yen)Previous fiscal year (As of March 31, 2021)
Within 1 year
Investments in leases

332Over 1 year
to 2 years

Over 2 years
to 3 years

Over 3 years
to 4 years

Over 4 years
to 5 years

Over 5 years

159

31

–

–

–
(Millions of yen)

Current fiscal year (As of March 31, 2022)
Within 1 year
Investments in leases

159

Over 1 year
to 2 years

Over 2 years
to 3 years

Over 3 years
to 4 years

Over 4 years
to 5 years

Over 5 years

31

–

–

–

–

TKK Report 2022 Financial Section

27

Notes - Financial instruments
1.
Status of financial instruments(1) Policy on treatment of financial instruments
The Group raises funds necessary to run its business smoothly by bonds payable and borrowing from banks. In thecase where the Group has temporary surplus funds, it invests them only in safe financial instruments.
The Group uses derivative transactions to hedge various risks described in (2) in accordance with the “Rules on
Handling of Derivative Transactions” established by the Company and has a policy not to enter into any speculativetransaction.
(2) Content and risks of financial instruments and risk management system therefor
The Group’s notes and accounts receivable - trade are subject to credit risk of its customers, and its certain
receivables denominated in foreign currencies are subject to exchange rate fluctuation risk. The Group mitigatesthe credit risk of its customers by periodically confirming whether there is any overdue receivable using an aging
schedule and other documents and the exchange rate fluctuation risk such as by borrowing in foreign currencies asneeded.
The Company’s securities are subject to credit risk of its investees, but the Company invests surplus funds in safe
financial instruments with high ratings through prescribed internal procedures.
The Group’s investment securities are subject to credit risk of its investees and market price fluctuation risk. They
are equity securities of listed companies with which the Group has business relationships, most of which are
categorized as available-for-sale securities, and the Group periodically ascertains the fair value thereof.
The Group’s notes and accounts payable - trade and accrued expenses are subject to liquidity risk, and its certain
payables denominated in foreign currencies are subject to exchange rate fluctuation risk. The Group mitigates theliquidity risk by periodically preparing a schedule of cash receipts and disbursements and other documents and theexchange rate fluctuation risk by forward exchange contracts and other means as needed.
Of bonds payable and borrowings, short-term borrowings are primarily for daily business transactions, and longterm borrowings and bonds payable are primarily for temporary advances on large-scale projects. Variable-rateborrowings are subject to interest rate fluctuation risk, and the Group uses interest rate swaps as hedging
instruments for respective contracts for most of the long-term borrowings in order to hedge the fluctuation risk of
the interest rates to be paid and fix interest expenses. The Group limits interest rate swaps to those to which the
exceptional treatment can be applied and omits assessment of hedge effectiveness thereon. The Group mitigates
the liquidity risk by periodically preparing a schedule of cash receipts and disbursements and other documents.
The Group executes and manages derivative transactions in accordance with the Company’s Rules on Handling of
Derivative Transactions and, when using derivatives, enters into transactions with financial institutions with highratings to mitigate credit risk. Please see “Accounting policy for hedging” of “Disclosure of accounting policies”
in “Significant accounting policies for preparation of the consolidated financial statements” described previously
for the hedging instruments, hedging policy, method of assessing the hedging effectiveness and other information
on hedge accounting.
(3) Supplementary explanation concerning fair values of financial instruments
As several variable factors are incorporated in measuring fair value of financial instruments, the resulting amount
may vary depending on the different preconditions employed. In addition, the contract amounts of derivativetransactions, mentioned in “Notes - Derivatives” in Notes, should not be considered indicative of the sizes of themarket risks involved in the derivative transactions.

28

TKK Report 2022 Financial Section

2.
Fair values of financial instruments
Carrying amounts on the consolidated balance sheet, fair values and differences therebetween of the financial
instruments are as shown below.
Previous fiscal year (As of March 31, 2021)(Millions of yen)
Carrying amount on
the consolidatedbalance sheet
8,425(1) Investment securities (*2)
Total assets(1) Bonds payable(2) Long-term borrowings(including within 1 year)
Total liabilities
Derivatives (*3)
(1) Those not qualifying for hedge accounting(2) Those qualifying for hedge accounting

Fair value

Difference

8,425

–

8,425

8,425

–

1,000

1,009

9

4,588

4,677

89

5,588

5,687

99

–
–

–
–

–
–

Total derivatives–––(*1) This information has been omitted with respect to “cash and deposits,” “notes and accounts receivable - trade,” “notes andaccounts payable - trade,” “short-term borrowings,” and “accrued expenses” because they are cash or their fair values approachthe carrying amounts given that they are settled on a short-term basis.
(*2) The following financial instruments have not been included in “(1) Investment securities” because they have no market value
and it is extremely difficult to ascertain their fair values. The carrying amount of such financial instruments on the consolidatedbalance sheet is as follows:(Millions of yen)Classification

Previous fiscal year

Unlisted equity securities, etc.
1,483(*3) Net receivables and payables arising from derivative transactions are presented in their net amounts.

Current fiscal year (As of March 31, 2022)(Millions of yen)
Carrying amount on
the consolidatedbalance sheet
6,209(1) Investment securities (*2)
Total assets(1) Bonds payable(2) Long-term borrowings(including within 1 year)
Total liabilities
Derivatives (*3)
(1) Those not qualifying for hedge accounting(2) Those qualifying for hedge accounting

Fair value

Difference

6,209

–

6,209
1,000

6,209
1,008

–
8

4,580

4,644

64

5,580

5,653

73

–
0

–
0

–
–

Total derivatives00–(*1) This information has been omitted with respect to “cash and deposits,” “notes receivable - trade,” “accounts receivable –trade,” “notes and accounts payable - trade,” “short-term borrowings,” and “accrued expenses” because they are cash or theirfair values approach the carrying amounts given that they are settled on a short-term basis.
(*2) Shares that do not have a market value have not been included in “(1) Investment securities.” The carrying amount of suchfinancial instruments on the consolidated balance sheet is as follows:(Millions of yen)Classification

Current fiscal year

Unlisted equity securities, etc.
1,453(*3) Net receivables and payables arising from derivative transactions are presented in their net amounts.

TKK Report 2022 Financial Section

29

(Notes) 1. Projected redemption amounts for monetary claims and securities with maturities after the consolidated balance sheet
date
Previous fiscal year (As of March 31, 2021)(Millions of yen)Over 1 year
Over 5 years
Within 1 year
Over 10 years
to 5 years
to 10 years
Cash
Notes and accounts receivable - trade
Securities
Investment securities
Held-to-maturity bonds
Available-for-sale securities

7,386
13,489
–

–
–
–

–
–
–

–
–
–

–
–

–
–

–
–

–
–

Total

20,875–––

Within 1 year

Over 1 year
to 5 years

Over 5 years
to 10 years

Over 10 years

8,724
673
9,011
–

–
–
–
–

–
–
–
–

–
–
–
–

–
–

–
–

–
–

–
–

18,410–––Current fiscal year (As of March 31, 2022)(Millions of yen)CashNotes receivable - trade
Accounts receivable - trade
Securities
Investment securities
Held-to-maturity bonds
Available-for-sale securities
Total

30

TKK Report 2022 Financial Section

2. Scheduled repayment amounts of bonds payable, long-term borrowings and other interest-bearing liabilities after the
consolidated balance sheet datePrevious fiscal year (As of March 31, 2021)(Millions of yen)Over 1 year
Over 2 years
Over 3 years
Over 4 years
Over 5 years
to 2 years
to 3 years
to 4 years
to 5 years
Bonds payable
Long-term borrowings
Total

–
–

–
1,700

–
2,480

–
400

1,000
–

–

1,700

2,480

400

1,000

Over 1 year
to 2 years

Over 2 years
to 3 years

Over 3 years
to 4 years

Over 4 years
to 5 years

Over 5 years

–
1,700

–
2,480

–
400

–
–

1,000
–

1,700

2,480

400

–

1,000

Current fiscal year (As of March 31, 2022)

Bonds payable
Long-term borrowings
Total

3.

(Millions of yen)

Matters regarding the breakdown of financial instruments by each fair value level
The fair values of financial instruments are categorized into the following three levels, in accordance with theobservability and significance of the inputs used in the measurement of fair value.
Level 1 fair value:
Level 2 fair value:
Level 3 fair value:

Fair value is measured using the market price related to the asset or liability subject tomeasurement of fair value formed in an active market, from among the observable inputs
used in fair value measurement.
Fair value is measured enlisting the inputs used in the measurement of fair value, otherthan the Level 1 inputs, from among the observable inputs used in fair value measurement.
Fair value is measured enlisting the unobservable inputs used in fair value measurement.

In cases where multiple inputs which have a material effect on the measurement of fair value are used, the fairvalue is categorized at the level with the lowest priority in the fair value measurement among the levels to which
the respective inputs belong.
(1) Financial instruments recorded on the consolidated balance sheet at fair value
Current fiscal year (As of March 31, 2022)
Classification(Millions of yen)

Fair value
Level 1

Level 2

Level 3

Total

Investment securities
Available-for-sale securities
Stocks

6,209

–

–

6,209

–

0

–

0

6,209

0

–

6,209

Derivative transactions
Currencies
Total assets(2) Financial instruments other than those recorded on the consolidated balance sheet at fair value
Current fiscal year (As of March 31, 2022)
Classification(Millions of yen)

Fair value
Level 1

Level 2

Level 3

Total

Bonds payable
–
1,008
–
Long-term borrowings (including within 1
–
4,644
–
year)
Total liabilities
–
5,653
–
(Note) Explanation of valuation methods used to measure fair value and inputs relating to fair value measurement
Investment securities
Listed stocks are valued using quoted market prices. The fair value of listed stocks is classified as level 1 fair value given

1,008
4,644
5,653

TKK Report 2022 Financial Section31

that listed stocks are traded in active markets.
Derivative transactions(1) Derivative transactions to which hedge accounting is not applied
Not applicable.
(2) Derivative transactions to which hedge accounting is applied
The fair value of interest rate swaps that are accounted for using exceptional treatment is included in fair value of “Liabilities(2) Long-term borrowings (including within 1 year),” as those interest rate swaps are treated together with the long-termborrowings that are subject to hedging (refer to “Long-term borrowings,” below). The fair value of forward exchange
contracts is measured enlisting the discounted cash flow method using observable inputs such as exchange rates, and iscategorized as Level 2 fair value.
Bonds payable
The fair value of bonds payable issued by the Company is measured enlisting the discounted cash flow method based oninterest rates considering the sum of principal and interest, and the interest rates considering the remaining duration andcredit risk of the bonds payable, and is categorized as Level 2 fair value.
Long-term borrowings
The fair value of long-term borrowings is measured enlisting the discounted cash flow method based on interest rates
considering the sum of principal and interest, and the interest rates considering the remaining duration and credit risk of theobligation, and is categorized as Level 2 fair value. Long-term borrowings with variable interest rates are subject to
exceptional treatment of interest rate swaps (refer to “Derivative transactions,” above), and their fair values are measured
using the sum of principal and interest accounted for with the relevant interest rate swaps.

32

TKK Report 2022 Financial Section

Notes - Securities
1.

Held-to-maturity bonds
Previous fiscal year (As of March 31, 2021)
Not applicable
Current fiscal year (As of March 31, 2022)
Not applicable

2.

Available-for-sale securities (securities classified as other securities under Japanese GAAP)
Previous fiscal year (As of March 31, 2021)
Type(1) Stocks(Millions of yen)
Carrying amount on
the consolidatedbalance sheet

Acquisition cost

Difference

8,425

2,943

5,482

(i) Government
bonds andmunicipal bonds,
etc.

–

–

–

(ii) Corporate
bonds

–

–

–

(iii) Other

–

–

–

(3) Other

–

–

–

8,425

2,943

5,482

–

–

–

(i) Government
bonds andmunicipal bonds,
etc.

–

–

–

(ii) Corporate
bonds

–

–

–

(iii) Other

–

–

–

(3) Other

–

–

–

–

–

–

(2) Bonds

Securities for which the carrying
amount on the consolidated balance
sheet exceeds the acquisition cost

Subtotal(1) Stocks(2) Bonds
Securities for which the carrying
amount on the consolidated balance
sheet does not exceed the acquisition
cost

Subtotal(Note)

Total
8,425
2,943
5,482
“Available-for-sale securities” in the above table do not include unlisted equity securities (carrying amount on the
consolidated balance sheet of ¥1,483 million) because there is no market value and accordingly it is extremely difficult
to ascertain their fair values.

TKK Report 2022 Financial Section

33

Current fiscal year (As of March 31, 2022)(Millions of yen)
Carrying amount on
the consolidatedbalance sheet

Type(1) Stocks

Acquisition cost

Difference

6,209

2,631

3,578

(i) Government
bonds andmunicipal bonds,
etc.

–

–

–

(ii) Corporate
bonds

–

–

–

(2) Bonds

Securities for which the carrying
amount on the consolidated balance
sheet exceeds the acquisition cost(iii) Other

–

–

–

(3) Other

–

–

–

6,209

2,631

3,578

–

–

–

(i) Government
bonds andmunicipal bonds,
etc.

–

–

–

(ii) Corporate
bonds

–

–

–

(iii) Other

–

–

–

(3) Other

–

–

–

–

–

–

Subtotal(1) Stocks(2) Bonds
Securities for which the carrying
amount on the consolidated balance
sheet does not exceed the acquisition
cost

Subtotal(Note)

3.

Total
6,209
2,631
3,578
“Available-for-sale securities” in the above table do not include shares that do not have a market value (unlisted equity
securities; carrying amount on the consolidated balance sheet of ¥1,453 million).

Available-for-sale securities that were sold
Previous fiscal year (From April 1, 2020 to March 31, 2021)
Type(1) Shares(2) Bonds(i) Government bonds and municipal bonds,
etc.
(ii) Corporate bonds(iii) Other(3) Other
Total

Sales amount
1,238

Total gain on sales
913(Millions of yen)
Total loss on sales
–

–

–

–

–
–
–

–
–
–

–
–
–

1,238

913

–

Current fiscal year (From April 1, 2021 to March 31, 2022)
Type(1) Shares(2) Bonds(i) Government bonds and municipal bonds,
etc.
(ii) Corporate bonds(iii) Other(3) Other
Total

34

TKK Report 2022 Financial Section

Sales amount644

Total gain on sales
331(Millions of yen)
Total loss on sales
–

–

–

–

–
–
21

–
–
2

–
–
–

665

333

–

4. Securities subject to the recognition of impairment loss
In the previous fiscal year, impairment loss of ¥73 million (shares in available-for-sale securities: ¥73 million)
was recognized on securities. In the current fiscal year, impairment loss of ¥96 million (shares in available-forsale securities: ¥96 million) was recognized on securities.
In the treatment for impairment loss, impairment loss is recognized in principle when the fair market value atthe period-end decreased by 50% or more compared with the acquisition cost, and impairment loss is recognized
to the extent of the amount considered necessary in light of materiality of the amount, recoverability and otherfactors when the fair market value at the period-end decreased by approximately 30% to 50%.

TKK Report 2022 Financial Section

35

Notes - Derivatives
1. Derivative transactions to which hedge accounting is not applied
Not applicable
2. Derivative transactions to which hedge accounting is applied(1) Currencies
Previous fiscal year (As of March 31, 2021)
Not applicable
Current fiscal year (As of March 31, 2022)(Millions of yen)Type of derivativetransaction, etc.

Classification

Principal hedged
items

Portion ofcontract
amount over
1 yearContract
amountFair value

Fair value iscalculated
based on theprice provided
bycounterparty
financial
21 institutions orother prices.

Forward exchange
contract
Allocation method
for forward
exchange contract

Buy contract

Accounts
payable - trade

Euro
Total

21

–

21

–

Fair value
calculation
method21(2) Interest rates
Previous fiscal year (As of March 31, 2021)(Millions of yen)Classification

Type of derivativetransaction, etc.

Principal hedged
items

Exceptional
treatment ofinterest rate swaps

Interest rate swap
transactions
Receive variable,
pay fixed

Long-term
borrowings(Note)

Contract
amount2,700

Portion ofcontract
amount over
1 year2,700

Fair value

Fair value
calculation
method(Note)(Note)

The fair value of interest rate swaps that are accounted for using exceptional treatment is included in that of corresponding
long-term borrowings, as those interest rate swaps are treated as an adjustment to long-term borrowings as hedged items.

Current fiscal year (As of March 31, 2022)

Classification

Type of derivativetransaction, etc.

Principal hedged
items

Exceptional
treatment ofinterest rate swaps

Interest rate swap
transactions
Receive variable,
pay fixed

Long-term
borrowings(Note)

36(Millions of yen)Contract
amount2,700

Portion ofcontract
amount over
1 year2,700

Fair value

Fair value
calculation
method(Note)(Note)

The fair value of interest rate swaps that are accounted for using exceptional treatment is included in that of corresponding
long-term borrowings, as those interest rate swaps are treated as an adjustment to long-term borrowings as hedged items.

TKK Report 2022 Financial Section

Notes - Retirement benefits
1. Summary of retirement benefit plans adopted
The Company and certain consolidated subsidiaries have defined benefit corporate pension plans as defined benefit
plans, and certain consolidated subsidiaries have a small and medium sized enterprise retirement allowancecooperative plan and lump-sum retirement plans.
In addition, the Company and certain consolidated subsidiaries have defined contribution corporate pension plans.
The Company and certain consolidated subsidiaries participate in Nihon Sangyo Kikai Kougyo Kigyonenkin Kikin(pension fund of Japan industrial machinery manufacturers) or Zenkankyo Kigyonenkin Kikin (pension fund for
employees in the environmental measurement certification sector nationwide). For this fund, since the amount ofpension plan assets corresponding to contributions by the respective companies cannot be reasonably calculated, thefund is accounted for similar to defined contribution plans.
2. Defined benefit plans(1) Reconciliation between beginning balance and ending balance of retirement benefit obligations
Previous fiscal year
(From April 1, 2020
to March 31, 2021)
Beginning balance of retirement benefit
obligations
Service cost
Interest expenses
Unrecognized net actuarial gain or loss
Retirement benefits paid
Past service cost
Increase due to acquisition of new
consolidated subsidiary
Other
Ending balance of retirement benefit
obligations(2)

Current fiscal year
(From April 1, 2021
to March 31, 2022)¥3,350 million¥3,361 million

192
15
(20)
(156)
(13)

241
13
(16)
(225)
44

–

497

(6)

8

3,361

3,925

Reconciliation between beginning balance and ending balance of pension plan assets

Beginning balance of pension plan assets
Expected return on plan assets
Unrecognized net actuarial gain or loss
Amount of employer contribution
Retirement benefits paid
Increase due to acquisition of new
consolidated subsidiary
Other
Ending balance of pension plan assets

Previous fiscal year
(From April 1, 2020
to March 31, 2021)¥3,235 million
37
397
232
(187)
–

Current fiscal year
(From April 1, 2021
to March 31, 2022)¥3,707 million
38
31
206
(240)
230

(8)

7

3,707

3,982

TKK Report 2022 Financial Section

37

(3)

Retirement benefit obligations and pension plan assets at the end of the fiscal year and reconciliation ofretirement benefit liability and retirement benefit asset on consolidated balance sheet
Previous fiscal year
(From April 1, 2020
to March 31, 2021)
Retirement benefit obligations under
funded system
Pension plan assets
Retirement benefit obligations under
unfunded system
Net amount of assets and liabilities statedin the consolidated balance sheet
Retirement benefit liability
Retirement benefit asset
Net amount of assets and liabilities statedin the consolidated balance sheet(4)¥3,361 million¥3,925 million(3,707)(3,982)

345

57

–

–

345

57

107
(452)

392
(449)

345

57

Retirement benefit expenses and components thereofService cost
Interest expenses
Expected return on plan assets
Amortization of net actuarial gain or loss
Amortization of past service cost
Retirement benefit expenses pertaining todefined benefit plans(5)

Current fiscal year
(From April 1, 2021
to March 31, 2022)

Previous fiscal year
(From April 1, 2020
to March 31, 2021)¥192 million
15
(37)
101
(13)
258

Current fiscal year
(From April 1, 2021
to March 31, 2022)¥241 million
13
(38)
(74)
44
186

Remeasurements of defined benefit plans on consolidated statement of income and comprehensive income

The components of remeasurements of defined benefit plans (before tax effects deduction) are as follows:
Previous fiscal year
(From April 1, 2020
to March 31, 2021)
Past service cost
Actuarial gains and losses
Total

Current fiscal year
(From April 1, 2021
to March 31, 2022)¥– million
518¥– million
(49)

518

(49)

(6) Remeasurements of defined benefit plans on consolidated balance sheet
The components of remeasurements of defined benefit plans (before tax effects deduction) are as follows:
Previous fiscal year
(From April 1, 2020
to March 31, 2021)
Unrecognized past service cost
Unrecognized net actuarial gain or loss
Total

38

TKK Report 2022 Financial Section

Current fiscal year
(From April 1, 2021
to March 31, 2022)¥– million(280)¥– million
(230)

(280)

(230)

(7) Pension plan assets(i) Major components of pension plan assets
Ratio of major components for total pension plan assets is as follows:
Previous fiscal year
(From April 1, 2020
to March 31, 2021)

Current fiscal year
(From April 1, 2021
to March 31, 2022)

28%
33
30
9

24%
43
26
7

100

100

Bonds
SharesGeneral account
Other
Total

(ii) Method of establishing expected long-term rates of return on plan assets
In order to determine the expected long-term rates of return on plan assets, the current and forecast distributionof plan assets and the current and expected future long-term rates of return from the diverse assets that comprisethe plan assets are taken into consideration.
(8) Matters relating to the basis for actuarial calculations
Main basis for actuarial calculations
Discount rate
Expected long-term rates of return on pension
plan assets

Previous fiscal year
(As of March 31, 2021)

Current fiscal year
(As of March 31, 2022)

0.25%

0.25%

1.00%

1.00%

3. Defined contribution plans
The required contribution from the Company and its consolidated subsidiaries into the defined contribution pension
plans was ¥81 million in the previous fiscal year and ¥76 million in the current fiscal year.
4. Multi-employer plan
The required contribution amount to the corporate pension fund plan under the multi-employer plan, which isaccounted for in the same manner as a defined contribution plan, was ¥103 million in the previous fiscal year and ¥96
million in the current fiscal year.
(1) Nihon Sangyo Kikai Kougyo Kigyonenkin Kikin (pension fund of Japan industrial machinery manufacturers)(i) Funded status of multi-employer planPrevious fiscal year
(As of March 31, 2020)

Current fiscal year
(As of March 31, 2021)

Plan assets
Sum of actuarial obligations calculated forfinance status of pension plan and minimum
reserve¥11,573 million¥14,292 million

21,12920,854

Net amount(9,557)(6,562)(ii) Group’s proportion of total contributions to planPrevious fiscal year
7.69%
(From April 1, 2020 to March 31, 2021)
Current fiscal year
7.71%
(From April 1, 2021 to March 31, 2022)(iii) Supplementary explanation
Major factors for the net amount in (i) above are the balance of past service liabilities (¥9,946 million as of March
31, 2020 and ¥8,658 million as of March 31, 2021) and surplus amount (¥389 million as of March 31, 2020 and¥2,096 million as of March 31, 2021) for pension financing calculation.
The principal and interest of past service liabilities in this plan are amortized equally over 10 years and 6 months,
and the Group recorded special contributions applied to such amortization (¥73 million as of March 31, 2020 and¥68 million as of March 31, 2021) as expenses in the consolidated financial statements.

TKK Report 2022 Financial Section

39

The proportions in (ii) above are not consistent with the proportions actually funded by the Group.
(2)

Zenkankyo Kigyonenkin Kikin (pension fund for employees in the environmental measurement certification
sector nationwide)(i) Funded status of multi-employer plan

Plan assets
Sum of actuarial obligations calculated forfinance status of pension plan and minimum
reserve
Net amountPrevious fiscal year
(As of March 31, 2020)

Current fiscal year
(As of March 31, 2021)¥7,514 million¥8,839 million

6,694

6,848

820

1,990

(ii) Group’s proportion of total contributions to planPrevious fiscal year–%
(From April 1, 2020 to March 31, 2021)
Current fiscal year
1.21%
(From April 1, 2021 to March 31, 2022)(iii) Supplementary explanation
The proportions in (ii) above are not consistent with the proportions actually funded by the Group.
Notes - Share options, etc.
Not applicable40

TKK Report 2022 Financial Section

Notes - Tax effect accounting
1. Significant components of deferred tax assets and liabilities
Previous fiscal year
(As of March 31, 2021)
Deferred tax assets
Tax loss carry-forward (Note)
Accrued business tax
Retirement benefit liability
Provision for bonuses
Allowance for doubtful accounts
Provision for loss on order received
Loss on valuation of investment securities
Loss on valuation of investments in capital
Impairment loss
Depreciation
Asset retirement obligations
Other

Current fiscal year
(As of March 31, 2022)¥122 million
57
32
79
74
9
225
203
393
56
70
244

¥134 million
63
73
135
76
–
225
233
339
124
200
242

Deferred tax assets subtotal
Valuation reserve for tax loss carryforwards (Note)
Valuation reserve for the total of deductible
temporary differences, etc.

1,569

1,849

(122)

(134)

(940)

(1,114)

Valuation reserve subtotal(1,062)(1,249)

506

599

1,095

1,095

1,550

974

866

861

138
47

141
32

Total deferred tax assets
Deferred tax liabilities
Revaluation reserve for land
Valuation difference on available-for-salesecurities
Reserve for tax purpose reduction entry of
non-current assets
Retirement benefit asset
Other

Total deferred tax liabilities
3,698
3,105
(Note)
Amounts of tax loss carry-forwards and related deferred tax assets by carry-forward period

Previous fiscal year (As of March 31, 2021)(Millions of yen)
Within 1
year

Over 1 year
to 2 years

Over 2
years to 3
years

Over 3
years to 4
years

Over 4
years to 5
years

Over 5years

Tax loss carry-forwards
(*)

–

71

2

5

42

–

122

Valuation reserve

–

(71)

(2)

(5)

(42)

–

(122)

Deferred tax assets

–

–

–

–

–

–

–

Total

TKK Report 2022 Financial Section

41

Current fiscal year (As of March 31, 2022)(Millions of yen)
Within 1
year

Over 1 year
to 2 years

Over 2
years to 3
years

Over 3
years to 4
years

Over 4
years to 5
years

Over 5years

Tax loss carry-forwards
(*)

79

2

–

49

3

–

134

Valuation reserve

(79)

(2)

–

(49)

(3)

–

(134)

Deferred tax assets

–

–

–

–

–

–

–

(*)

Total

Tax loss carry-forwards represent the amount multiplied by the statutory effective tax rate.

2. Main components causing significant differences between the statutory effective tax rate and the actual effective
tax rate after application of tax effect accounting
Previous fiscal year
(As of March 31, 2021)

Current fiscal year
(As of March 31, 2022)

Statutory effective tax rate
Adjustments
Increase/decrease in valuation reserve
Expenses not deductible for income tax
purposes, such as entertainment expenses
Income not included for income tax purposes,
such as dividends received
Per capita levy of inhabitant taxes
Effect of differences in tax rates applicable tosubsidiaries from tax rate applicable to theCompany
Retained earnings of overseas subsidiaries
Tax credits
Other

30.62%

30.62%

6.30

5.07

0.73

0.85

(0.46)(0.37)

1.14

0.99

3.64

0.82

(1.03)(2.17)(0.20)(0.12)(0.62)(0.04)

Actual effective tax rate

38.56

37.19

Notes - Asset retirement obligations
Of asset retirement obligations, items recorded on the consolidated balance sheet
1. Outline of asset retirement obligations
The Group assumes obligations to restore the original state of certain facilities for rent, such that are associatedwith costs of removing asbestos from buildings containing asbestos and real estate lease agreements for
manufacturing facilities and other owned sites situated on leased land under the Ordinance on Prevention ofAsbestos Hazards and other such regulations.
2. Calculation method for determining asset retirement obligation amountWith respect to facilities containing asbestos, estimates regarding future costs of removing asbestos are recognized
as asset retirement obligations. This amount is not discounted because the estimated period of use has alreadyelapsed.
With respect to obligations to restore the original state of sites associated with real estate lease agreements, theamount of asset retirement obligations was calculated using a discount rate of 0.643% assuming an estimated periodof use of 28 years from acquisition.

42

TKK Report 2022 Financial Section

3. Increase (decrease) in total asset retirement obligations
Previous fiscal year
(From April 1, 2020
to March 31, 2021)

Current fiscal year
(From April 1, 2021
to March 31, 2022)

Beginning balance
Increase due to acquisition of property, plantand equipment
Increase due to change in estimates
Adjustments associated with passage of time
Decrease due to settlement of asset retirement
obligations¥235 million–¥230 million
144

Ending balance

–
–

427
0

(4)

(3)

230

799

Notes - Real estate for lease, etc.
The Company and certain subsidiaries rent out a space such as in their business places as well as land mainly forrental housing and buildings in the Tokyo metropolitan area and other areas. Rental profit related to the real estate forrent, etc. for the previous fiscal year was ¥286 million (rent income is recorded in net sales, and rent expenses arerecorded in cost of sales). Rental profit related to the real estate for rent, etc. for the current fiscal year was ¥255
million (rent income is recorded in net sales, and rent expenses are recorded in cost of sales).
Carrying amounts on the consolidated balance sheet, changes during period for the previous and current fiscal years
and fair values of the real estate for rent, etc. are as follows:(Millions of yen)
Current fiscal year
(From April 1, 2021
to March 31, 2022)

Previous fiscal year
(From April 1, 2020
to March 31, 2021)
Carrying amount on the consolidated balance
sheet
Balance at beginning of
period

4,818

4,746

Increase (decrease)during period

(71)

(257)

Balance at end of
period

4,746

4,489

Fair value at end of period
3,299
3,199
(Notes) 1. Carrying amount on the consolidated balance sheet is calculated by subtracting accumulated depreciation andimpairment loss from acquisition cost.
2. The increase (decrease) during period for the previous fiscal year primarily consist of a decrease in rentable space(¥62 million) and a decrease due to depreciation (¥9 million). The increase (decrease) during period for the current
fiscal year primarily consist of a decrease in rentable space (¥249 million) and a decrease due to depreciation (¥8
million).
3. Fair value of property whose amount has significance at the end of the period is an amount based on a value
investigation report by an external real property appraiser, and that of other property whose amount has little
significance is an amount based on an index which is believed to reflect a market value appropriately.

TKK Report 2022 Financial Section

43Notes - Revenue recognition
1. Information on disaggregation of revenue from contracts with customers
Information on disaggregated revenue by timing of revenue recognition is as follows:
Current fiscal year (From April 1, 2021 to March 31, 2022)
Logistics
Solutions
Business

Reportable segments
Plant &
MachineryBusiness(Millions of yen)
Total

Other

Total

Goods and services transferred at a
7,035
76
7,112
8,371
15,484point in time
Goods and services transferred
25,951
14,93040,881
1,954
42,836over time
Revenue from contracts with
32,987
15,00647,993
10,32658,320
customers
Other revenue (Note)
–
–
–
857
857
Sales to external customers
32,987
15,00647,993
11,18359,177(Note)
Other revenue consists of lease revenue and other such amounts pursuant to the Accounting Standard for Lease
Transactions.

2. Information that serves as a basis for understanding revenue from contracts with customers
Information that serves as a basis for understanding revenue from contracts with customers has been presented in,“Notes - Significant accounting policies for preparation of the consolidated financial statements, 4. Disclosure ofaccounting policies, (5) Accounting policies for significant revenues and expenses.”
3. Information on the relationship between satisfying performance obligations pursuant to contracts with customers
and cash flows from such contracts, and the amount and timing of revenue expected to be recognized fromcontracts with customers that existed at the end of the current fiscal year and are expected to be recognized insubsequent fiscal years(1) Balance of contract assets and contract liabilities
Receivables from contracts withcustomers
Contract assets
Contract liabilities

As of March 31, 2021

(Millions of yen)
As of March 31, 2022

9,972

9,685

3,516
2,354

15,642655

Of the revenues recognized in the current fiscal year, ¥2,343 million is included in the balance of contract liabilities
as of the beginning of the fiscal year.

(2) Transaction price allocated to remaining performance obligations
Unsatisfied performance obligations are ¥38,977 million as of March 31, 2022. These performance obligations
mainly involve construction contracts in the Logistics Solutions Business and the Plant & Machinery Business,with respect to which approximately 90% is to be recognized as revenue within one year subsequent to the end of
the fiscal year and the remaining 10% is to be recognized as revenue within two to five years.

44

TKK Report 2022 Financial Section

Notes - Segment information, etc.
[Segment information]
1. Description of reportable segments
The reportable segments of the Company are components for which discrete financial information is available andwhose operating results are regularly reviewed by the Board of Directors of the Company to make decisions about
resource allocation and assess their performance.
The Group develops comprehensive business strategies and engages in business activities for respective products
and service of divisions by product and service in the Company.
Accordingly, the Company is comprised of segments by product and service, and its reportable segments consistof “Logistics Solutions Business” and “Plant & Machinery Business.”“Logistics Solutions Business” develops, designs, builds and executes construction works of, material handlingsystems focusing on sorting, picking and conveying systems and provides maintenance services and otheroperations for these systems. “Plant & Machinery Business” designs, builds, and executes construction works of,storage tanks for LNG, LPG, crude oil and other gas and liquid and provides maintenance services and otheroperations for these tanks.
2. Method of measurements of sales, profit (loss), asset, and other items for each reportable segment
The accounting procedures for the reporting operating segments are nearly the same as those stated in “Significant
accounting policies for preparation of the consolidated financial statements.” Profits of the reportable segments are
based on operating profit. Intersegment transactions are based on actual transaction amounts.
As stated in “Notes - Changes in accounting policies,” the Group has applied the “Accounting Standard for
Revenue Recognition” (ASBJ Statement No. 29, issued on March 31, 2020) and related guidance effective fromthe beginning of the current fiscal year, thereby resulting in change to its accounting method for revenue recognition
and accompanying change to the method for measuring profit or loss of business segments.
As a result of the change, net sales of the Plant & Machinery Business for the current fiscal year increased by¥3,290 million relative to net sales under the previous method.
3. Disclosure of sales, profit (loss), asset, and other items for each reportable segment
Previous fiscal year (From April 1, 2020 to March 31, 2021)
Reportable segments

Sales
Sales to externalcustomers
Transactions withother segments
Total

Other
(Note)(Millions of yen)

Logistics
Solutions
Business

Plant &
MachineryBusiness

27,2399,800

37,0396,577–

43,617

–

–

–

151

(151)

–
43,617

Total

Adjustment

Total

27,2399,800

37,039

6,729

(151)

Segment profit (loss)

3,140

(602)

2,538

789

(703)

2,623

Segment assets

25,742

11,19436,937

12,423

9,403

58,764

459

79

538

218

19

776

478

44

523

345

428

1,297

Other items
Depreciation
Increase in property,
plant and equipment,
and intangible assets(Note)“Other” includes the Life & Work Environmental Business (building construction business, manufacturing and sales ofindustrial facilities and equipment, inspection, measurement and analysis of asbestos), real estate rental operations,leasing operations, etc.

TKK Report 2022 Financial Section

45

Current fiscal year (From April 1, 2021 to March 31, 2022)(Millions of yen)

Reportable segments

Sales
Sales to externalcustomers
Transactions withother segments

Other(Note)

Logistics
Solutions
Business

Plant &
MachineryBusiness

32,987

15,00647,993

11,183–59,177

–

–

–

397

(397)

–
59,177

Total

Adjustment

Total

Total

32,987

15,00647,993

11,581(397)

Segment profit

3,149

108

3,258

572

(1,021)

2,808

Segment assets

33,196

8,192

41,38914,796

8,105

64,290

423

18

442

282

21

745

610

27

638

410

218

1,267

Other items
Depreciation
Increase in property,
plant and equipment,
and intangible assets(Note)“Other” includes the Life & Work Environmental Business (building construction business, manufacturing and sales ofindustrial facilities and equipment, inspection, measurement and analysis of asbestos, maintenance and management ofenvironmental measuring instruments, and environmental research), real estate rental operations, leasing operations, etc.

4. Differences between total amounts for reportable segments and amounts in the consolidated financial statements
and main details of these differences (matters relating to difference adjustments)
Profit(Millions of yen)
Current fiscal year

Previous fiscal year

Reportable segments total
Profit of “other”
Corporate expenses (Note)
Other adjustments

2,538
789
(700)
(3)

3,258
572
(1,021)(0)

Operating profit in the consolidated financial
2,623
2,808
statements(Note) Corporate expenses mainly represent expenses related to administrative divisions such as the general affairs division,
which are not attributable to the reportable segments.
(Millions of yen)
Asset

Previous fiscal year

Reportable segments total
Assets of “other”
Corporate assets (Note)
Other adjustments

Current fiscal year
36,937
12,4239,441(37)

41,38914,796
8,120(15)

Total assets in the consolidated financial
58,76464,290statements(Note) Corporate assets mainly represent assets related to divisions managing cash and deposits, investment securities and otherassets of the Company, which are not attributable to the reportable segments.

[Information associated with reportable segments]
Previous fiscal year (From April 1, 2020 to March 31, 2021)
1. Information for each product and service(Millions of yen)
Material handlingsystemStorage tank, etc.
equipment, etc.
Sales to external customers

46

TKK Report 2022 Financial Section

27,2391,085

Maintenanceservices ofstorage tanks
8,715

Other
6,577

Total
43,617

2. Information about geographical area
(1) Sales
Japan(Note)(Millions of yen)Southeast Asia

Total

Other

42,1591,416
40
Sales are classified by country or region on the basis of construction sites.

43,617(2) Property, plant and equipment
Japan(Millions of yen)Southeast Asia

15,593

Oceania

Total

7

40

15,641

3. Information for each of main customers
This information has been omitted since sales to a specific customer account for less than 10% of net sales in the
consolidated statement of income and comprehensive income.
Current fiscal year (From April 1, 2021 to March 31, 2022)
1. Information for each product and service(Millions of yen)
Material handlingsystemStorage tank, etc.
equipment, etc.
Sales to external customers

32,987

Maintenanceservices ofstorage tanks

1,108

Other

13,897

11,183

2. Information about geographical area
(1) Sales
Japan(Note)

Total(Millions of yen)Southeast Asia

Total

Other

58,124
1,044
8
Sales are classified by country or region on the basis of construction sites.

59,177(2) Property, plant and equipment
Japan59,177(Millions of yen)Southeast Asia

16,194

Oceania
87

Total
39

16,321

3. Information for each of main customers
Name of customer

Sales

Amazon Japan G.K.

Relevant segment¥9,663 million

Logistics Solutions Business[Disclosure of impairment loss on non-current assets for each reportable segment]
Previous fiscal year (From April 1, 2020 to March 31, 2021)(Millions of yen)
Reportable segments
Logistics
Solutions
Business
Impairment losses

Plant &
MachineryBusiness
–

1,047

Other

Adjustment

–

Total

–

1,047

Current fiscal year (From April 1, 2021 to March 31, 2022)
Not applicableTKK Report 2022 Financial Section

47

[Amortization and unamortized balance of goodwill for each reportable segment]
Previous fiscal year (From April 1, 2020 to March 31, 2021)
Not applicable
Current fiscal year (From April 1, 2021 to March 31, 2022)
In the “Other” segment, the Company has recognized goodwill associated with having made Eco Analysis Corporationa subsidiary. The increase in goodwill due to this event was ¥9 million in the first quarter of the current fiscal year.
[Gain on bargain purchase for each reportable segment]
Previous fiscal year (From April 1, 2020 to March 31, 2021)
Not applicable
Current fiscal year (From April 1, 2021 to March 31, 2022)
Not applicable[Information associated with related parties]
Subsidiaries and others
1. Related party transactions
Not applicable
2. Notes concerning the parent company or important affiliated companies
Not applicable
Notes - Per share information

Net assets per share
Basic earnings per share(Notes) 1.
2.

3.

Previous fiscal year
(From April 1, 2020
to March 31, 2021)

Current fiscal year
(From April 1, 2021
to March 31, 2022)¥4,461.06¥4,460.55¥212.41¥285.43

The amount of diluted earnings per share is not provided because there are no potential shares.
In the calculation of “net assets per share,” shares of the Company held by the benefit trust for officers are included
in treasury shares deducted from the total number of shares issued at the end of the fiscal year (81 thousand sharesin the previous fiscal year, 81 thousand shares in the current fiscal year).
In addition, in the calculation of “basic earnings per share,” such shares are included in treasury shares deducted in
the calculation of the average number of shares during the period (82 thousand shares in the previous fiscal year, 81
thousand shares in the current fiscal year).
The basis for calculation for basic earnings per share is as follows:
Previous fiscal year
Current fiscal year
(From April 1, 2020
(From April 1, 2021
to March 31, 2021)
to March 31, 2022)

Profit attributable to owners of parent
Profit not relating to common shareholders¥1,777 million–¥2,334 million–

Profit attributable to owners of parent
pertaining to common shares¥1,777 million¥2,334 million

Average number of shares during the period

8,368
thousand shares

8,177
thousand shares

Notes - Significant events after reporting period
Acquisition of treasury shares
At its meeting of the Board of Directors held on May 13, 2022, the Company resolved matters pertaining to theacquisition of treasury shares based on the provisions of Article 156 of the Companies Act as applied by replacing
certain terms under Article 165, Paragraph (3) of the Companies Act.
(1)

48

Reason for acquisition of treasury shares
The Company will acquire treasury shares in order to flexibly implement capital strategy.

TKK Report 2022 Financial Section

(2)

(v)

Matters pertaining to the transactions(i) Class of shares to be acquired
Common shares of the Company(ii) Total number of shares to be acquired 120,000 shares (maximum)(Equivalent to 1.5% of the total number of issued shares, excluding treasury shares)(iii) Total acquisition cost of shares¥300 million (maximum)(iv) Acquisition period
From May 19, 2022 to July 27, 2022(v) Acquisition method
Open market purchase via trust scheme

Annexed consolidated detailed schedules

Annexed consolidated detailed schedule of bonds payable
Type of bondDate ofissuance

Toyo Kanetsu
K.K.

1st Series ofUnsecured Bonds

Toyo Kanetsu
K.K.

2nd Series ofUnsecured Bonds

Company name

Total

–

(Note)

BeginningbalanceEndingbalance

Interest rate(%)

Collateral

Date ofmaturity

500

0.39

None

September
24, 2027

500

500

0.41

None

March 24,
2028

1,000

1,000

–

–

–

(Millions ofyen)(Millions ofyen)

September25, 2020

500

March 25,
2021–

Projected redemption amounts for five years after the consolidated balance sheet date are as follows:(Millions of yen)Over 1 year
to 2 years

Within 1 year–

Over 2 years
to 3 years–

Over 3 years
to 4 years–

Over 4 years
to 5 years––

Annexed consolidated detailed schedule of borrowings
Classification
Short-term borrowings

Beginning balance(Millions of yen)Ending balance(Millions of yen)

Average interest
rate (%)

Repayment due

3,620

8,120

0.379

–

8

–

–

–

Long-term borrowings (excluding
current portion)

4,580

4,580

0.793

Total

8,208

12,700–Current portion of long-termborrowings(Notes) 1.
2.

Between 2024 and 2026–

In calculating the average interest rate, the weighted average interest rate on the ending balance of borrowings, isshown.
Repayment of long-term borrowings (excluding the current portion) scheduled within five years after the
consolidated balance sheet date is as follows:(Millions of yen)Classification
Long-term
borrowings

Over 1 year
to 2 years
1,700

Over 2 years
to 3 years

Over 3 years
to 4 years

Over 4 years
to 5 years

2,480

400

–

Annexed consolidated detailed schedule of asset retirement obligations
A schedule of asset retirement obligations has been omitted since matters to be stated in the schedule are stated as
notes prescribed in Article 15-23 of the Regulation on Terminology, Forms, and Preparation Methods of Consolidated
Financial Statements.

(2) Other information
Quarterly information for the current fiscal year

TKK Report 2022 Financial Section49

First quarter(Cumulative)(Cumulative period)
Net sales(From April 1, 2021
to June 30, 2021)

Third quarter(Cumulative)(From April 1, 2021
(From April 1, 2021
to September 30, 2021) to December 31, 2021)

Current fiscal year

(From April 1, 2021 toMarch 31, 2022)(Millions of yen)

18,01430,65743,18359,177

Profit before income taxes(Millions of yen)

928

1,822

2,318

3,716

Profit attributable to owners ofparent(Millions of yen)

590

1,142

1,473

2,334

Basic earnings per share

72.26

139.68180.17285.43First quarter

Second quarter

Third quarter

Fourth quarter

72.26

67.42

40.49

105.27(Yen)(Accounting period)
Basic earnings per share

50

Second quarter(Cumulative)

TKK Report 2022 Financial Section(Yen)

(TRANSLATION)
INDEPENDENT AUDITOR’S REPORT
June 28, 2022
To the Board of Directors of
Toyo Kanetsu K.K.
GYOSEI & CO.
Tokyo Office
Designated Partner
Engagement Partner
Certified Public Accountant

Tetsuo Noguchi

Designated Partner
Engagement Partner
Certified Public Accountant

Akira Mishima

Audit of Financial Statements
Audit Opinion
Pursuant to the first paragraph of Article 193-2 of the Financial Instruments and Exchange Act of Japan, we haveaudited the accompanying consolidated financial statements of Toyo Kanetsu K.K. (the “Company”), which comprisethe consolidated balance sheet as of March 31, 2022, and the consolidated statements of income and comprehensive
income, the consolidated statement of changes in equity, the consolidated statement of cash flows for the fiscal year
from April 1, 2021 to March 31, 2022, and significant accounting policies for preparation of the consolidated financial
statements, other notes, and annexed consolidated detailed schedules, all expressed in Japanese yen.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, theconsolidated financial position of the Company and its subsidiaries (the “Group”) as of March 31, 2022, and theconsolidated results of their operations and their cash flows for the year then ended in conformity with accounting
principles generally accepted in Japan.
Basis for Audit Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities underthose standards are further described in the “Auditor’s Responsibilities for the Audit of the Consolidated Financial
Statements” section of our report. We are independent of the Group in accordance with the ethical requirements thatare relevant to our audit in Japan, and we have fulfilled our other ethical responsibilities as auditors. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in the audit of theconsolidated financial statements of the current fiscal year. These matters were addressed in the context of our auditof the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide aseparate opinion on these matters.

TKK Report 2022 Financial Section

51

Consideration of the estimate of total cost of construction work involving contracts for which revenue is recognizedbased on degree of progress
Description of key audit matters and reason for
How we addressed the matter in our audit
determining the matter
As stated in the “Notes - Significant accounting In examining appropriateness of the estimate of total costestimates,” net sales under contracts for which revenue is of construction work involving contracts for which
recognized based on degree of progress recorded in the revenue is recognized based on degree of progress, weconsolidated statement of income and comprehensive mainly implemented the following audit procedures.
income for the current fiscal year by the consolidated(1) Assessment of internal control
group of Toyo Kanetsu K.K. (hereinafter referred to as
the “Company”) are ¥20,556 million. Most of the amount We assessed design of internal control related to
was recorded in the Company’s Logistics Solutions estimation of total cost of construction work, andBusiness. Therefore, for auditing purposes, there is effectiveness of the operational status.
significance of the amount in it.
(2) Assessment of reasonableness of the estimate of total
The Company records sales based on degree of progress, cost of construction work
which is calculated as the proportion of construction cost
incurred corresponding to value of work done at the end With regard to the estimate of total cost of constructionof the current fiscal year, relative to the total amount of work as at the end of the current fiscal year, we mainly
estimated cost of construction work. The estimated implemented the following audit procedures.
amount of total cost of construction work has been - We asked the person responsible for the managerial unit
determined on the basis of management’s best estimate of the division that estimates total cost of construction
and judgments based on past experience and available work questions to understand the overview of theinformation collected as well as individual work construction work, and examined consistency between
specifications, and changes to original estimates may the description of the work understood and major
occur due to price fluctuations in the market, changes to components of the total cost of construction work.
specifications, natural disasters and others. Therefore, forauditing purposes, there is qualitative significance in it. - We checked materials supporting estimation of cost of
construction work such as quotations received from
Due to the above factors, we have judged that the subcontractors and suppliers of products against
estimate of total cost of construction work that the components of the total cost of construction work, andCompany recognizes as revenue based on degree of examined appropriateness of the estimated amount of the
progress in the Logistics Solutions Business is a key audit total cost of construction work.
matter.
- With regard to total cost of construction work for which
the cost rate was estimated to be lower in light of pastrecords, we asked questions about reasons why the cost
rate was estimated to be lower in light of past results, andexamined reasonableness of the estimate.
- With regard to construction works that were completed
or delivered in the current fiscal year, we compared theestimated amount of total cost of construction work withthe actual amount, verified appropriateness of theestimate of total cost of construction work as at the endof the previous fiscal year ex post facto, and checked
whether there was any matter to be taken into account inexamining appropriateness of the estimated amount of
total cost of construction work as at the end of the current
fiscal year.
Other information
The other information comprises the information included in the Annual Securities Report aside from the consolidated
financial statements, the non-consolidated financial statements, and the auditor’s reports thereon. Management is
responsible for preparing and disclosing the other information. The Audit and Supervisory Committee is responsible
for overseeing Directors in executing their duties with respect to developing and administering the reporting process
for the other information.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.

52

TKK Report 2022 Financial Section

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial
statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information,
we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of Management and the Audit and Supervisory Committee for the Consolidated Financial
Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements inaccordance with accounting principles generally accepted in Japan, and for designing and operating such internal
control as management determines is necessary to enable the preparation and fair presentation of consolidated
financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing whether it is appropriate
to prepare the consolidated financial statements with the assumption of the Group’s ability to continue as a going
concern, and for disclosing matters related to going concern, as applicable in accordance with accounting principles
generally accepted in Japan.
The Audit and Supervisory Committee is responsible for overseeing the Directors’ execution of duties relating todesigning and operating the Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our responsibilities are to obtain reasonable assurance about whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes ouropinion on the consolidated financial statements based on our audit from an independent point of view. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
In accordance with auditing standards generally accepted in Japan, we exercise professional judgment and maintainprofessional skepticism throughout the audit. We also:•

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due tofraud or error, and design and perform audit procedures responsive to those risks. Selecting audit procedures to be
applied is at the discretion of the auditor. Obtain audit evidence that is sufficient and appropriate to provide a basis
for our opinion.

•

Consider, in making those risk assessments, internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, while the purpose of the audit of the consolidated financial
statements is not expressing an opinion on the effectiveness of the Group’s internal control.

•

Evaluate the appropriateness of accounting policies used by management and their method of application, as wellas the reasonableness of accounting estimates made by management and related notes thereto.

•

Conclude on the appropriateness of management’s use of the going concern basis for preparing the consolidated
financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related toevents or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If weconclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related
notes to the consolidated financial statements or, if such notes are inadequate, to express a qualified opinion withexceptions on the consolidated financial statements. Our conclusions are based on the audit evidence obtained up
to the date of our auditor’s report. However, future events or conditions may cause the Company to cease tocontinue as a going concern.

•

Evaluate whether the overall presentation of the consolidated financial statements and the notes thereto are inaccordance with accounting principles generally accepted in Japan, as well as the overall presentation, structure
and content of the consolidated financial statements, including the notes thereto, and whether the consolidated
financial statements represent the underlying transactions and accounting events in a manner that achieves fairpresentation.

TKK Report 2022 Financial Section

53

•Obtain sufficient appropriate audit evidence regarding the financial information of the Group to express an opinion
on the consolidated financial statements. We are responsible for the direction, supervision and performance of theaudit of the consolidated financial statements. We remain solely responsible for our audit opinion.

We communicate with the Audit and Supervisory Committee regarding the planned scope and timing of the audit,
significant audit findings, including any significant deficiencies in internal control that we identify during our audit,
and other matters required by auditing standards.
We also provide the Audit and Supervisory Committee with a statement that we have complied with relevant ethicalrequirements in Japan regarding independence, and communicate with it all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards in order to eliminate or
reduce obstruction factors.
We determine which of the matters discussed with the Audit and Supervisory Committee were of most significancein the audit of the consolidated financial statements of the current fiscal year and therefore are the key audit matters,
and describe the matters in the auditor’s report. However, we do not describe such a matter, if law or regulationprecludes public disclosure about the matter, or if in extremely rare circumstances, we determine that the matter should
not be communicated in the auditor’s report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
Audit of Internal Control
Audit Opinion
Pursuant to the second paragraph of Article 193-2 of the Financial Instruments and Exchange Act of Japan, we haveaudited management’s report on internal control of the Company as of March 31, 2022.
In our opinion, the management’s report on internal control referred to above, which represents that the internal
control over financial reporting of the Company as of March 31, 2022 was effective, presents fairly, in all material
respects, the results of the assessment of internal control over financial reporting in accordance with assessment
standards for internal control over financial reporting generally accepted in Japan.
Basis for Audit Opinion
We conducted our internal control audit in accordance with auditing standards for internal control over financial
reporting generally accepted in Japan. Our responsibilities under the auditing standards for internal control overfinancial reporting are further described in the “Auditor’s Responsibilities for the Audit of the Report on Internal
Control” section of our report. We are independent of the Group in accordance with the ethical requirements that are
relevant to our audit in Japan, and we have fulfilled our other ethical responsibilities as auditors. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management and the Audit and Supervisory Committee for the Report on Internal Control
Management is responsible for designing and operating effective internal control over financial reporting, and for the
preparation and fair presentation of the report on internal control in accordance with assessment standards for internal
control over financial reporting generally accepted in Japan.
The Audit and Supervisory Committee is responsible for overseeing and verifying the design and operation ofeffective internal control over financial reporting.
There is a possibility that misstatements may not be completely prevented or detected by internal control over financial
reporting.
Auditor’s Responsibilities for the Audit of the Report on Internal Control
Our responsibilities are to obtain reasonable assurance about whether the report on internal control is free frommaterial misstatement, and to issue a report on audit of internal control that includes our opinion on the report oninternal control based on our internal control audit from an independent point of view.
In accordance with auditing standards for internal control over financial reporting generally accepted in Japan, we
exercise professional judgment and maintain professional skepticism throughout the audit. We also:•

54

Perform audit procedures in order to obtain audit evidence regarding the evaluation results for internal control

TKK Report 2022 Financial Section

over financial reporting in the report on internal control. The audit procedures for internal control auditing selected
and applied depend on the auditor’s judgment, including the significance of effects on the reliability of financial
reporting.
•

Evaluate disclosures on the scope, procedures and results of the assessment of internal control over financial
reporting made by management, as well as evaluate the overall presentation of the report on internal control.

•

Obtain audit evidence that is sufficient and appropriate regarding the results of the assessment of internal control
over financial reporting in the report on internal control. We are responsible for the direction, supervision andperformance of the audit of the report on internal control. We remain solely responsible for our audit opinion.

We communicate with the Audit and Supervisory Committee regarding the planned scope and timing of the internal
control audit, results of the internal control audit, significant identified deficiencies in internal control that should be
disclosed, results of their correction, and other matters required by auditing standards for internal control.
We also provide the Audit and Supervisory Committee with a statement that we have complied with relevant ethicalrequirements in Japan regarding independence, and communicate with it all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards in order to eliminate or
reduce obstruction factors.
Conflicts of Interest
Our firm and its engagement partners do not have any interest in the Group which is required to be disclosed pursuant
to the provisions of the Certified Public Accountants Act of Japan.
The above represents a translation, for convenience only, of the original report issued in the Japanese language.
Please note that the other information contained in the TKK Report 2022 Financial Section differs from the otherinformation contained in the Annual Securities Report.

TKK Report 2022 Financial Section

55

Corporate Data
Date of Establishment

May 16, 1941

Common Stock¥18,580 million

Authorized Shares

297,000,000

Capital Stock Issued

9,323,074

Number of Shareholders

11,341

Security Traded

Tokyo Stock Exchange, Prime Market

Transfer Agent and Registrar

The Mitsubishi UFJ Trust and Banking Corporation
4-5, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8212, Japan

Annual Meeting

The annual meeting of shareholders is normally held in June in Tokyo, Japan

Directory
Head Office11-1, Minamisuna 2-chome, Koto-ku, Tokyo 136-8666, Japan
Tel: +81-3-5857-3333 Fax: +81-3-5857-1952
URL: https://www.toyokanetsu.co.jp/global/

Wakayama Plant
457, No, Arida, Wakayama 649-0314, Japan
Tel +81-737-85-3120

Chiba Plant
2 Tsukiji, Kisarazu, Chiba 292-0835, Japan
Tel: +81-438-36-7161 Fax: +81-438-36-8211

Domestic Subsidiaries

Overseas Subsidiaries

Toyo Kanetsu Builtec K.K.

PT Toyo Kanetsu Indonesia

11-1, Minamisuna 2-chome, Koto-ku, Tokyo 136-8666, Japan
Tel: +81-3-3640-5164 Fax: +81-3-6800-3156
URL: http://www.web-tkb.com(Jakarta Head Office)Midplaza Building 1, 8th Floor, Jl. Jend. Sudirman Kav. 10-11,
Jakarta 10220, Indonesia
Tel: +62-21-570-7805 / 7739 Fax: +62-21-570-3950
URL: http://www.pttki.com/

Toyo Service System K.K.
11-1, Minamisuna 2-chome, Koto-ku, Tokyo 136-8666, Japan
Tel: +81-3-5857-3200 Fax: +81-3-5857-3171
URL: https://www.toyoservice.co.jp

Toyo Koken K.K.
11-1, Minamisuna 2-chome, Koto-ku, Tokyo 136-8666, Japan
Tel: +81-3-5857-3161 Fax: +81-3-5857-3198
URL: https://www.toyokoken.co.jp/en

Kankyo Research Institute Inc.
6-22, Okadomachi, Hachioji-shi, Tokyo 192-0054, Japan
Tel: +81-42-627-2810 Fax: +81-42-627-2820
URL: http://www.kankyo-research.co.jp/

Eco Analysis Corporation
84, Takedakitamitsuguicho, Fushimi-ku, Kyoto-shi, Kyoto
612-8419, Japan
Tel: +81-75-643-0341 Fax: +81-75-644-0645
URL: http://www.kankyou-keisoku.co.jp/

56

TKK Report 2022 Financial Section

Toyo Kanetsu Singapore Pte. Ltd.
16 Ayer Rajah Crescent, #03-04 Tempco Technominium,
3rd Floor, Singapore 139965
Tel: +65-6776-2393 Fax: +65-6773-1703

Toyo Kanetsu (Malaysia) Sdn. Bhd.
Sublot 51, 1st Floor, Medan Jaya Commercial Centre,
97000 Bintulu, Sarawak, Malaysia
Tel: +60-86-338-122 Fax: +60-86-338-123

Contact

TOYO KANETSU K.K.
Corporate Planning Department
Corporate Division
TEL: +81-3-5857-3333 FAX: +81-3-5857-3170
E-MAIL: tkkreport@toyokanetsu.co.jp
URL: https://www.toyokanetsu.co.jp/global/