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 Nine Months Ended December 31, 2018
(Based on Japanese GAAP)
February 13, 2019
Company name:TOYO KANETSU K.K.

Stock exchange listing: Tokyo
Stock code:
6369

URL

https://www.toyokanetsu.co.jp

Representative:

President and Representative Director
Executive Officer, General Manager ofToru YanagawaInquiries:

Financial Planning Department, Corporate
Management Division

Takeshi Yonehara

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

February 14, 2019–

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:

Yes
NoTEL

03-5857-3333(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the nine months ended December 31, 2018 (from April 1, 2018 to December 31, 2018)(1) Consolidated operating results (cumulative)
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%
Nine months ended December 31, 2018
26,963 (14.5)(240)–
85 (96.5)(68)–
Nine months ended December 31, 2017
31,5469.3
2,035(9.6)
2,428(8.0)
2,127 (28.7)
Earnings per share

Diluted earnings per share

Yen
Yen
Nine months ended December 31, 2018
(7.54)–
Nine months ended December 31, 2017
225.61–(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 the beginningof the previous fiscal year.
(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen
Millions of yen%
Yen
As of December 31, 2018
55,56633,20759.8
3,673.34
As of March 31, 2018
55,81836,66665.7
3,941.68(Note) “Partial revision of Tax Effect Accounting” (Corporate Accounting Standard No.28, February 16, 2018) had been reflected from the year
ending March 31, 2019, the consolidated financial position of previous fiscal year is shown as revision reflected amount.
2. Cash dividends
Annual dividends per share

Year ended March 31, 2018Year ending March 31, 2019

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
0.00
0.00

Yen––

Yen
100.00Total

Year ending March 31, 2019 (Forecast)
100.00(Note) The Company conducted a share consolidation at a ratio of 10 shares of common shares to 1 share, effective on October 1,2017.

Yen
100.00100.003. Forecast of consolidated financial results for the year ending March 31, 2019 (from April 1, 2018 to March 31, 2019)
Net sales
Full year

Millions of yen
47,900Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%Yen
14.7
2,270
0.2
2,620(1.0)
1,700 (28.0)
184.5414. Notes(1) Changes in significant subsidiaries during the nine months ended December 31, 2018(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:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements:

No(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2018

9,323,074 shares As of March 31, 2018

9,703,074 shares

283,511 shares As of March 31, 2018

401,043 shares

Number of treasury shares at the end of the period
As of December 31, 2018

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2018
9,108,896 shares Nine months ended December 31, 2017
9,431,914 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, the average number of shares during the period is 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, 2018

As of December 31, 2018

AssetsCurrent assets
Cash and deposits

12,421

7,829

9,387
1,781

14,011
1,566

500
40–32

3,819
1,640

5,682
1,667

494(21)767(15)30,064

31,539Buildings and structures, net
Machinery, equipment and vehicles, net

3,457
1,152

3,454
1,082

Tools, furniture and fixtures, net
Land

282
10,707314
10,556

110
0366
14

Notes and accounts receivable - trade
Lease investment assets
Securities
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

15,71015,789Intangible assets
Investments and other assets

Total property, plant and equipment

368368Investment securities
Deferred tax assets

8,730
58

6,912
47

398
778

326
871

Net defined benefit asset
Other
Allowance for doubtful accounts

(292)

(290)

Total investments and other assets

9,674

7,869

25,75324,02655,81855,566

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2018

As of December 31, 2018

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

2,033
4,604

1,692
7,649

Current portion of long-term loans payable
Accrued expenses

15
3,380

–
3,658

Income taxes payable
Advances received

316
417

105
2,313

Provision for bonuses
Provision for loss on order received

242
183

16169

Provision for warranties for completed construction
Other

580
924

435
643

Total current liabilities

12,698

16,684Non-current liabilities
Long-term loans payable

3,080

3,153

1,591
1,107

820
1,095

Net defined benefit liability
Asset retirement obligations

325
321

351
225

Other

27

27

Deferred tax liabilities
Deferred tax liabilities for land revaluation

Total non-current liabilities

6,453

5,674

19,151

22,359

Capital stock
Capital surplus

18,5801,273

18,580
1,273

Retained earnings
Treasury shares

15,750(1,397)

13,454(1,077)

Total shareholders' equity

34,20732,231

Total liabilities
Net assets
Shareholders' equity

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

2,995

1,594

Deferred gains or losses on hedges
Revaluation reserve for land–133

(0)
106

Foreign currency translation adjustment
Remeasurements of defined benefit plans(676)
5(717)(8)

Total accumulated other comprehensive income

2,458

974

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

40

136,666

33,20755,81855,566

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)(Millions of yen)
Nine months ended

Nine months ended

December 31, 2017

December 31, 2018

Net sales
Cost of sales

31,54625,57026,96323,043Gross profit

5,976

3,919

Selling, general and administrative expenses

3,940

4,159

Operating profit (loss)

2,035(240)Interest income
Dividend income

8280

9296

Foreign exchange gains
Other

4698–
120

Total non-operating income

435

426

Non-operating income

Non-operating expenses
Interest expenses

2737

Foreign exchange losses
Other–
1534
28

Total non-operating expenses

42100

2,428

85

Gain on sales of investment securities
Gain on bargain purchase

320–7487

Other

95

23

Total extraordinary income

415

185

Loss on valuation of investment securities
Loss on disaster––190
88

Other

610

Total extraordinary losses

6289

Ordinary profit
Extraordinary income

Extraordinary losses

Profit (loss) before income taxes

2,837

(18)

Income taxes - current

462

194

Income taxes - deferred

247

(143)

Total income taxes

709

50

Profit (loss)

2,127

(69)

Profit attributable toProfit (loss) attributable to owners of parent

2,127

(68)

–(0)

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

1,497
14(1,401)(0)Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

(62)
(41)

(40)
(13)

Loss attributable to non-controlling interests
Other comprehensive income

1,407(1,457)

Comprehensive income

Total other comprehensive income

3,535(1,526)Comprehensive income attributable toComprehensive income attributable to owners of parent

3,535(1,525)–(0)Comprehensive income attributable to non-controlling interests5