Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended March 31, 2022
(Based on Japanese GAAP)May 13, 2022
Company name:TOYO KANETSU K.K.
Stock exchange listing: Tokyo
Stock code:
6369
URL https://www.toyokanetsu.co.jp
Representative:
President and Representative Director
Takashi Owada
Senior Executive Officer
Inquiries:
Division ManagerTakeshi Yonehara
TEL 03-5857-3333
Corporate Division
Scheduled date of ordinary general meeting of shareholders:June 28, 2022
Scheduled date to file Securities Report:
June 28, 2022
Scheduled date to commence dividend payments:
June 29, 2022
Preparation of supplementary material on financial results:
Yes
Holding of financial results meeting:Yes(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended March 31, 2022
59,177–2,808–
3,474–
2,334–
Year ended March 31, 2021
43,617
(6.2)
2,623
1.2
3,053
2.8
1,777
3.5
Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen
Yen%%%
Year ended March 31, 2022
285.43
–
6.4
5.6
4.7
Year ended March 31, 2021
212.41
–
5.0
5.1
6.0
(Note)From the beginning of the current consolidated fiscal year the Company has applied “Accounting Standard for Revenue Recognition”(ASBJ Statement No. 29). The figures for fiscal year ended March 31, 2022 of the current fiscal year above include the effects of the said
standards. Accordingly, percentages of changes from the previous fiscal year are not indicated.
Earnings per share

Diluted earnings pershare(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yenMillions of yen%
Yen
As of March 31, 2022
64,29036,47756.7
4,460.55
As of March 31, 2021
58,76436,48462.1
4,461.06(Note) “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29) has been applied from the beginning of the fiscal year ended
March 31, 2022. The figures for the fiscal year ended March 31, 2022 are the figures after applying the relevant accounting standards.
(3) Consolidated cash flows

Year ended March 31, 2022
Year ended March 31, 2021

Cash flows fromoperating activities
Millions of yen(1,097)
1,482

Cash flows frominvesting activities
Millions of yen
(830)
(338)

1

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen
3,208
8,654
(5,176)7,309

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

Year ended March 31, 2021
Year ended March 31, 2022
Year ending March 31, 2023
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

TotalYen

Yen

YenYenYen

Millions of yen

%%

––

0.00
0.00

––

115.00145.00115.00145.00

949
1,197

54.1
50.8

2.7
3.3

–

0.00

–

135.00135.0051.6

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Yen
Full year
52,100 (12.0)
2,700(3.9)
2,900 (16.5)
2,140(8.3)
261.71
4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Yes
Changes in accounting policies due to other reasons:No
Changes in accounting estimates:
No
Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2022

9,323,074 shares As of March 31, 2021

9,323,074 shares

1,145,933 shares As of March 31, 2021

1,144,747 shares

8,177,689 shares Year ended March 31, 2021

8,368,557 shares

Number of treasury shares at the end of the period
As of March 31, 2022
Average number of shares during the period
Year ended March 31, 20222

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2021

As of March 31, 2022

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract assets

7,413
13,4898,759
25,327

550
57

220
32

6,732
2,523

795
2,550

863
(13)

670
(24)

31,61638,332

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

4,142
716

4,157
773

Tools, furniture and fixtures, net
Land

284
10,122376
10,374

356
18

608
31

15,641

16,321Intangible assets
Investments and other assets

481

667

Investment securities
Deferred tax assets

9,909
42

7,663
234

Retirement benefit assetOther

452
847

449
847

Allowance for doubtful accounts

(227)

(224)

Total investments and other assets

11,024

8,970

27,14725,95858,76464,290Investments in leases
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

Construction in progress
Other, net
Total property, plant and equipment

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2021

As of March 31, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade

1,091

1,761

Short-term borrowings
Current portion of long-term borrowings

3,620
8

8,120
–

Accrued expenses
Income taxes payable

3,778
914

4,887
774

Contract liabilities
Provision for bonuses

2,354
259

655
434

Provision for loss on orders received
Provision for warranties for completed construction

30
348

–
299

Other

681

1,269

13,08618,202

Bonds payable
Long-term borrowings

1,000
4,580

1,000
4,580

Deferred tax liabilities
Deferred tax liabilities for land revaluation

2,138
1,095

1,644
1,095

Retirement benefit liability
Asset retirement obligations

107
230

392
799

Other4198

Total current liabilities
Non-current liabilities

Total non-current liabilities

9,193

9,610

22,28027,813

Share capital
Capital surplus

18,5801,273

18,580
1,273

Retained earnings
Treasury shares

16,148(2,933)

17,533(2,936)

Total shareholders' equity

33,06834,450Total liabilities
Net assets
Shareholders' equity

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

3,937

2,632

Deferred gains or losses on hedges
Revaluation reserve for land

9106

3106

Foreign currency translation adjustment
Remeasurements of defined benefit plans(833)
195(878)160

Total accumulated other comprehensive income

3,415

2,024

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

40

2

36,48436,47758,76464,290Consolidated statements of income and consolidated statements of comprehensive income(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2021

March 31, 2022

Net sales
Cost of sales

43,61734,36959,17749,016Gross profit

9,247

10,161

Selling, general and administrative expenses

6,623

7,352

Operating profit

2,623

2,808

Interest income
Dividend income

14259

6273

Foreign exchange gains
Gain on sale of scraps

–
33

163
77

Subsidy income
Reversal of allowance for doubtful accounts

104
84

107
0

Other

79

109

Total non-operating income

576

737

Interest expenses
Bond issuance costs

59
23

62
–

Commission for purchase of treasury shares
Foreign exchange losses

1737

–
–

Non-operating income

Non-operating expenses

Other

118

Total non-operating expenses

147

71

3,053

3,474

Ordinary profit
Extraordinary income
Gain on sale of non-current assets

950

Gain on sale of investment securities
Other913
65333
14

Total extraordinary income

989

398

Extraordinary losses
Loss on valuation of investment securities

7396

Loss on revision of retirement benefit plan
Impairment losses

–
1,047

59–

1315–
0

1,149

157

Profit before income taxes

2,892

3,716

Income taxes - current
Income taxes - deferred

1,199(83)

1,331
50

Total income taxes

1,115

1,382

Profit

1,777

2,334

1,777(0)2,3340Loss on disaster
OtherTotal extraordinary losses

Profit attributable toProfit attributable to owners of parent
Profit (loss) attributable to non-controlling interests

5

(Millions of yen)

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

Fiscal year ended

Fiscal year ended

March 31, 2021

March 31, 2022
1,271

(1,305)

Deferred gains or losses on hedges
Foreign currency translation adjustment9(104)(6)(44)

Remeasurements of defined benefit plans, net of tax

360

(34)

1,536

(1,390)Comprehensive income

Total other comprehensive income

3,313943

Comprehensive income attributable toComprehensive income attributable to owners of parent

3,314

943

(0)

0

Comprehensive income attributable to non-controlling interests

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

Capital surplus

18,580Retained earnings

1,273

Total shareholders'equity

Treasury shares

15,224(2,355)32,722

Changes during period
Dividends of surplus

(853)

(853)

Profit attributable to owners ofparent

1,777

1,777

Purchase of treasury shares

(583)

(583)

Disposal of treasury shares

55Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

––

924

(578)

345

18,5801,273

16,148(2,933)33,068

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

2,666

Deferred
gains orlosses onhedges

Revaluation
reserve for
land
0106

Foreigncurrencytranslation
adjustment(729)

TotalRemeasurements

accumulatedof defined benefit

otherplanscomprehensive

Noncontrollinginterests

Total netassets

income(165)

1,878

134,602

Changes during period
Dividends of surplus(853)

Profit attributable to owners ofparent

1,777

Purchase of treasury shares(583)

Disposal of treasury shares

5Net 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

9106(833)

195

3,415

0

36,484

7

Fiscal year ended March 31, 2022
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

18,580Retained earnings

1,273

Total shareholders'equityTreasury shares

16,148(2,933)33,068Changes during period
Dividends of surplus

(949)

(949)

Profit attributable to owners ofparent

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
available-forsale securities
Balance at beginning of period

3,937

Deferred
gains orlosses onhedges

Revaluation
reserve forland
9106

Foreigncurrencytranslation
adjustment(833)

TotalRemeasurements

accumulatedof defined benefit

otherplanscomprehensive

Noncontrollinginterests

Total net
assetsincome

195

3,415

0

36,484

Changes during period
Dividends of surplus(949)

Profit attributable to owners ofparent

2,334

Purchase of treasury shares(3)

Net changes in items otherthan shareholders' equity(1,305)(6)

Total changes during period(1,305)(6)–

Balance at end of period2,632

3106–

8(44)

(34)

(1,390)2(1,388)

(44)

(34)

(1,390)

2(7)

(878)

160

2,024

236,477

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2021

March 31, 2022
2,892

3,716

776
–745
1

1,047
(61)

–
7

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

(39)
94

40(66)

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

(211)

(30)

(41)

(48)

Depreciation
Amortization of goodwill
Impairment losses
Increase (decrease) in allowance for doubtful accounts

construction
Interest and dividend income

(273)

(279)

Interest expenses
Loss on disaster

59
1362
–

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

97
73

(166)
96

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

(913)
(9)

(333)
(50)

Loss on retirement of non-current assets
Decrease in trade receivables and contract assets

4
1,865

0(10,362)

Decrease (increase) in investments in leases
Decrease (increase) in inventories

370(2,134)330
5,953

Decrease (increase) in advance payments to suppliers
Increase (decrease) in trade payables

(228)
(785)

231
1,243

Increase (decrease) in contract liabilities
Other, net(436)(54)(1,782)916

Subtotal

2,104

225

Interest and dividends received
Interest paid

273
(62)

279
(63)

Payments associated with disaster loss
Income taxes paid

(28)
(804)

–(1,539)

Net cash provided by (used in) operating activities

1,482(1,097)

Cash flows from investing activities
Payments into time deposits

(102)

(102)

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

102(1,131)102(1,013)

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

11(470)0(43)Proceeds from sale and redemption of investment securities
Purchase of shares of subsidiaries resulting in change in scope

1,238644–(619)of consolidation
Other, net
Net cash provided by (used in) investing activities

912200(338)(830)

(Millions of yen)

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

Fiscal year ended

Fiscal year ended

March 31, 2021

March 31, 2022
(4,229)4,164

Proceeds from long-term borrowings
Repayments of long-term borrowings

100(619)–(8)

Proceeds from issuance of bonds
Purchase of treasury shares

1,000(583)

–(3)

5–

–
2

Proceeds from disposal of treasury shares
Proceeds from share issuance to non-controlling shareholders
Dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

(850)

(945)

(5,176)

3,208

(59)

64

Net increase (decrease) in cash and cash equivalents(4,093)

1,345

Cash and cash equivalents at beginning of period

11,402

7,309

Cash and cash equivalents at end of period

7,309

8,654

10