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

Summary of Consolidated Financial Results
for the Six Months Ended September 30, 2017
(Based on Japanese GAAP)
November 10, 2017
Company name:TOYO KANETSU K.K.
Stock exchange listing: Tokyo
Stock code:
Representative:

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

Inquiries:

Executive Officer, General Manager ofFinancial Planning Department, Corporate

Takeshi Yonehara

Management Division
Scheduled date to file Quarterly Securities Report:

November 13, 2017

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

Holding of quarterly financial results meeting:

NoTEL

03-5857-3333(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2017 (from April 1, 2017 to September 30, 2017)
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%
22,10011.5
1,634 (21.9)
1,910 (14.2)
1,482(2.6)
19,828 (14.9)
2,092 135.6
2,225 103.7
1,522 181.3(1) Consolidated operating results (cumulative)

Six months ended September 30, 2017
Six months ended September 30, 2016

Earnings per share

Diluted earnings per share

Yen
Yen
Six months ended September 30, 2017156.57–Six months ended September 30, 2016147.85–(Note) The Company conducted a share consolidation at a ratio of 10 shares of common shares to 1 share, effective on October 1,
2017. Accordingly, the earnings per share is calculated based on the assumption that the share consolidation had been conducted at thebeginning of the previous fiscal year.
(2) Consolidated financial position
Total assets
As of September 30, 2017
As of March 31, 2017

Net assets

Millions of yen
56,05053,228Equity ratio

Millions of yen
35,99135,481

Net assets per share%
64.2
66.7

Yen
3,819.21
3,702.00

2. Cash dividends
Annual dividends per shareYear ended March 31, 2017
Year ending March 31, 2018

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
0.00
0.00

Yen–

Yen
12.00

Total
Yen
12.00

Year ending March 31, 2018 (Forecast)–
100.00100.00(Note) The Company conducted a share consolidation at a ratio of 10 shares of common shares to 1 share, effective on October 1,
2017. Accordingly, the forecast for annual dividends per share for the year ending March 31, 2018 takes the share consolidation intoaccount.

13. Forecast of consolidated financial results for the year ending March 31, 2018 (from April 1, 2017 to March 31, 2018)
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
44,9007.1
2,570 (16.6)
2,890 (16.0)
2,200 (41.3)
232.32(Note) The forecast for earnings per share for the year ending March 31, 2018 takes the share consolidation into account.

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2017(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

NoNo(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

No
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2017

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

10,303,074 shares

279,362 shares As of March 31, 2017718,748 shares

Number of treasury shares at the end of the period
As of September 30, 2017

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2017
9,469,870 shares Six months ended September 30, 2016
10,294,738 shares(Note) The Company conducted a share consolidation at a ratio of 10 shares of common shares to 1 share, effective on October 1,
2017. Accordingly, (i) the total number of issued shares at the end of the period, (ii) the number of treasury shares at the end of the period,and (iii) the average number of shares during the period, are calculated based on the assumption that the share consolidation had been
conducted at the beginning of the previous fiscal year.

2Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2017

As of September 30, 2017

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

6,811
12,824

10,49011,567

Lease investment assets
Securities

1,526
100

1,781
599

Merchandise and finished goods
Work in process

54
4,140

47
3,780

Raw materials and supplies
Deferred tax assets

1,649
582

1,713
334

872
(83)

290
(63)

28,47930,541

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

3,578
1,132

3,538
1,052

Tools, furniture and fixtures, net
Land

288
10,965305
10,7801190710

16,084

15,748Intangible assets
Investments and other assets

418

377

Investment securities
Deferred tax assets

7,325
41

8,469
34

Net defined benefit asset
Other358
788

305
865

Allowance for doubtful accounts

(267)

(292)

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 investments and other assets
Total non-current assets
Total assets

3

8,245

9,382

24,74825,50853,22856,050(Millions of yen)
As of March 31, 2017

As of September 30, 2017

Liabilities
Current liabilities
Notes and accounts payable - trade

2,347

1,742

Short-term loans payable
Current portion of long-term loans payable

2,397
60

6,642
45

Accrued expenses
Income taxes payable

4,324
647

3,846
414

Advances received
Provision for bonuses

1,173
258

722
267

674
512

218
555

Provision for loss on order received
Provision for warranties for completed construction
Other709

741

13,104

15,197Long-term loans payable
Deferred tax liabilities

1,095
1,692

1,080
1,908

Deferred tax liabilities for land revaluation
Net defined benefit liability

1,121
364

1,121
387

332
37327
37

Total current liabilities
Non-current liabilities

Asset retirement obligations
Other
Total non-current liabilities

4,642

4,861

17,747

20,058

Shareholders' equity
Capital stock

18,58018,580Capital surplus
Retained earnings

1,273
16,447

1,273
14,840Total liabilities
Net assets

Treasury shares(2,323)(886)

Total shareholders' equity

33,97833,807

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

1,992
(14)

2,760
–

Revaluation reserve for land
Foreign currency translation adjustment

163(652)

163
(728)

Accumulated other comprehensive income

Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

414(12)

1,503

2,183

35,48135,99153,22856,050Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)(Millions of yen)Six months ended
September 30, 2016

Six months ended
September 30, 2017

Net sales

19,828

22,100

Cost of sales

15,318

17,837Gross profit

4,509

4,263

Selling, general and administrative expenses

2,417

2,628

Operating profit

2,092

1,634

126

Dividend income
Foreign exchange gains

184–

208
19

Other

110

70

Total non-operating income

307

305

7145

18–

Non-operating income
Interest income

Non-operating expenses
Interest expenses
Foreign exchange losses
Other

20

11

Total non-operating expenses

174

29

2,225

1,910

Ordinary profit
Extraordinary income
Gain on sales of non-current assets–94

Gain on sales of investment securities
Other

20––

Total extraordinary income

394

Extraordinary losses
Head office relocation expanses

155–

Loss on retirement of non-current assets
Other

035

11

Total extraordinary losses

191

2

Profit before income taxes

2,037

2,002

Income taxes - current
Income taxes - deferred

467
48363
155

Total income taxes

515

519

1,522

1,482

1,522

1,482

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

(90)
0768
14

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax(109)
(31)

(75)
(27)

Total other comprehensive income

(230)

680

Comprehensive income

1,291

2,163

Comprehensive income attributable toComprehensive income attributable to owners of parent

1,291

2,163

ProfitProfit attributable toProfit attributable to owners of parent
Other comprehensive income

5Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Decrease (increase) in net defined benefit asset
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for loss on order received
Increase (decrease) in provision for warranties for completed
construction
Interest and dividend income
Interest expenses
Head office relocation expenses
Foreign exchange losses (gains)
Loss (gain) on sales of investment securities
Loss on retirement of non-current assets
Loss (gain) on sales of non-current assets
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in lease investment assets
Decrease (increase) in inventories
Decrease (increase) in advance paymentsIncrease (decrease) in notes and accounts payable - trade
Increase (decrease) in advances received
Other, net

Six months ended

Six months ended

September 30, 2016

September 30, 2017

2,037
327
31
1284(45)
(95)

2,002
373
–
5
13
16(454)46

43(196)7155
129(2)
10(1,054)(1)(1,252)125(492)
(394)
(296)

(215)
18–
(24)
–
1(94)
1,172
(254)
302
441
(1,078)(452)
170

Subtotal

(871)

1,988

Interest and dividend income received
Interest expenses paid
Payments for head office relocation expenses
Income taxes paid

199
(7)
(157)
(576)

215
(16)
–(557)(1,413)

1,630

(202)
500
(4,333)
363
(0)
6152

–100
(238)
256
(634)
–
(0)

Net cash provided by (used in) investing activities(3,513)(516)

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Repayments of long-term loans payable
Purchase of treasury shares
Cash dividends paid

10(30)
(1)
(511)

4,241
(30)
(503)
(1,143)

Net cash provided by (used in) financing activities(531)

2,564Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from sales and redemption of securities
Purchase of non-current assets
Proceeds from sales of non-current assets
Purchase of investment securities
Proceeds from sales and redemption of investment securities
Other, net

Effect of exchange rate change on cash and cash equivalents

(322)

(0)

Net increase (decrease) in cash and cash equivalents(5,781)

3,678

Cash and cash equivalents at beginning of period

13,606

6,810

Cash and cash equivalents at end of period

7,825

10,488

6