Consolidated Basis Results of the Fiscal 2018
(April 1, 2018 – March 31, 2019)
May 10, 2019
TOPY INDUSTRIES, LIMITED
Stock listing: Tokyo, Nagoya stock exchanges
7231
URL: http://www.topy.co.jp/english/index.html
Nobuhiko Takamatsu, President and CEO
Shuichi Tachibana, Operating Officer, General Manager, General Affairs Department
Telephone: 03-3493-0777 / (Overseas) 81-3-3493-0777
Scheduled date for holding of ordinary general meeting of shareholders: June 25, 2019
Scheduled date for dividend payment:
June 4, 2019
Scheduled date for submission of securities report:
June 25, 2019
Preparation of supplementary explanatory materials: Yes
Holding of financial results meeting:Yes (for analysts and institutional investors)
Registered Company name:
Code number:
Representative:
Contact:(Figures of less than ¥1 million have been omitted)
1. Consolidated Operating Results and Financial Position of the Fiscal 2018 (April 1, 2018 - March 31, 2019)(1) Consolidated Operating Results(Percentage figures are changes from the previous fiscal year)
Profit attributable
Net sales
Operating profit
Ordinary profit
to owners of parent
Million yen%

Fiscal 2018286,227
Fiscal 2017
230,462(Note) Comprehensive income:

24.2
10.7

Profit per share

Million yen%

Million yen%

Million yen

%

7,505
(6.2)
9,357
16.5
7,114
29.3
7,997
11.4
8,034
31.4
5,500
(23.5)
Fiscal 2018 ¥4,234 million -41.2%
Fiscal 2017
¥7,199 million -6.5%
Profit per share
Ordinary profit Operating profit
Return on equity
after full dilution
to total assets
to net sales

Yen

Yen

%

Fiscal 2018302.85–
Fiscal 2017234.25–(For reference) Share of profit or loss of entities accounted for using equity method:

%

6.5
5.2
Fiscal 2018
Fiscal 2017

%

3.5
3.4
¥583 million¥144 million

2.6
3.5

(2) Consolidated Financial Position
Total assets
Million yen

Million yen

Fiscal 2018284,198
Fiscal 2017248,102(For reference) Shareholders’ equity:
Fiscal 2018
(3) Consolidated Cash Flows
Cash flow fromoperating activities

112,362
109,859¥111,304 million

Cash flow frominvesting activities

Million yen

Fiscal 2018
Fiscal 2017

Ratio of shareholders’equity to total assets

Net assets

%

Yen

39.2
43.9
Fiscal 2017

4,737.26
4,640.13¥108,959 million

Cash flow fromfinancing activities

Million yen

11,725
10,780Net assets per share(20,835)(5,861)

Cash and cash equivalents
at end of period

Million yen

Million yen

15,936
1,834

29,56023,036

2. Dividends
End of firstquarter
Fiscal 2017
Fiscal 2018
Fiscal 2019 (Forecasts)

End of second
quarter

Dividends per share
End of third
End of fiscal
quarteryear

Full fiscal year

Total dividends(annual)Payout ratio(consolidated)

Dividends/
net assets(consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

–
–
–

20.00
20.00
40.00

–
–
–

60.00
70.00
50.00

80.00
90.00
90.00

1,884
2,119

34.2
29.7
26.4

1.8
1.9

3. Consolidated Financial Forecasts for Fiscal 2019 (April 1, 2019 - March 31, 2020)(Percentage figures are changes from the same period of the previous fiscal year)
Profit attributable to
Net sales
Operating profit
Ordinary profit
Profit per shareowners of parent
First half
Full year

Million yen%

Million yen%

Million yen%

Million yen%

Yen

149,000
307,000

10.2
7.3

4,200
11,000

25.9
46.6

4,400
11,400

30.6
21.8

3,100
8,000

39.2
12.5

131.94340.49–1–

* NOTE(1) Changes in the State of Material Subsidiaries during the Period: Yes
Newly included: 1 (Asahi Tec Aluminium (Thailand) Co., Ltd.)
Excluded: –(2) Changes in Accounting Principles, Changes in Accounting Estimates, and Retrospective Restatements(a) Changes in accounting principles accompanying the amendment of accounting standards: None(b) Changes other than those in (a) above: None(c) Changes in accounting estimates: None(d) Retrospective restatements: None
(3) Number of Shares Issued (Common shares)(a) Number of shares issued at the end of the period (including treasury stock)
Fiscal 201824,077,510 sharesFiscal 2017(b) Number of treasury stock at the end of the period
Fiscal 2018
582,007 sharesFiscal 2017(c) Average number of shares issued during the period
Fiscal 201823,490,559 sharesFiscal 2017

24,077,510 shares
595,417 shares
23,482,598 shares(For reference) Non-Consolidated Results
Non-Consolidated Operating Results and Financial Position of the Fiscal 2018 (April 1, 2018 - March 31, 2019)(1) Non-Consolidated Operating Results(Percentage figures are changes from the previous fiscal year)
Net sales
Operating profit
Ordinary profit
ProfitMillion yen

Fiscal 2018
Fiscal 2017%

150,768
138,872

Million yen

8.6
13.4

Million yen(62.2)
11.2

5,566
4,199

%

32.5
(12.9)

Million yen

1,245
2,259

%

(44.9)(66.2)

Profit per shareafter full dilution

Profit per share
Fiscal 2018
Fiscal 2017

%

1,048
2,771

Yen

Yen

53.00
96.21

–
–

(2) Non-Consolidated Financial Position
Total assets

Ratio of shareholders’equity to total assets

Net assets

Million yen

Fiscal 2018
215,608
Fiscal 2017
191,128(For reference) Shareholders’ equity:
Fiscal 2018
Fiscal 2017

Million yen

77,19879,297¥77,198 million¥79,297 million

Net assets per share
%

Yen

35.8
41.5

3,285.17
3,376.40*These Consolidated Basic Results are not included in the scope of audits by certified public accountants or audit corporations.
* Explanation of the Appropriate Use of Performance Forecasts and Other Related Items(Caution concerning future descriptions etc.)
The above estimate has been compiled based on information available at the time this disclosure was made. The actual earnings
are subject to change from the estimated values due to various factors. For assumed conditions underlying the earnings forecast
and cautionary statements in using the earnings forecast, please refer to “1. Overview of Operating Results” on page 4.
(Obtaining supplementary documents of financial results)
Supplementary documents will be posted on the Company’s website.

–2–

Index of Attached Documents
1. Overview of Operating Results ................................................................................................................................................

4(1) Overview of Operating Results for the Fiscal Year under Review......................................................................................

4(2) Overview of Financial Position for the Fiscal Year under Review......................................................................................

5(3) Future Outlook....................................................................................................................................................................

6(4) Basic Profit Allocation Policy, and Dividends for the Current and New Fiscal Year ..........................................................

6

2. Basic Policy for the Selection of Accounting Standards...........................................................................................................

6

3. Consolidated Financial Statements and Key Notes ..................................................................................................................

7(1) Consolidated Balance Sheets ..............................................................................................................................................

7(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ..........................................

9

Consolidated Statements of Income..................................................................................................................................

9

Consolidated Statements of Comprehensive Income ........................................................................................................ 10(3) Consolidated Statements of Changes in Net Assets ............................................................................................................ 11(4) Consolidated Cash Flow Statements................................................................................................................................... 13(5) Notes Regarding the Consolidated Financial Statements.................................................................................................... 15(Note related to going-concern assumption) ..................................................................................................................... 15(Segment information)...................................................................................................................................................... 15(Information per share) ..................................................................................................................................................... 18(Important events after the reporting period) .................................................................................................................... 18

Note: This document has been translated from the original Japanese version for reference purposes only. In the event of any
discrepancy between this translated document and the original Japanese version, the original shall prevail.
The original disclosure in Japanese was released on May 10th, 2019 at 13:30 (GMT+9).
The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from thetranslation.

–3–

1. Overview of Operating Results(1) Overview of Operating Results for the Fiscal Year under Review
Operating Results for the Consolidated Fiscal Year under review
During the consolidated fiscal year under review, the global economy staged a moderate recovery overall, reflecting continued
expansion in the United States and a visible trend toward recovery in emerging economies. However, the slowdown in China
became more apparent, primarily due to the effects of trade tensions with the United States. The Japanese economy sustained a
gradual recovery as the employment environment picked up and capital spending remained on an expansion track, despite
weakness in certain economic indicators.
The Group instituted the Growth & Change 2018 initiative of the mid-term management plan to achieve sustainable growth andoffer great workplaces. In the Automotive & Industrial Machinery Components Business, the Group bolstered the operating basefor the passenger car wheel business and the expansion of overseas bases through the conversion of Ring Techs Co., Ltd., a steel
wheel manufacturer, and ASAHI Tec Corporation, an aluminum wheel manufacturer, into wholly owned subsidiaries. In addition,
in response to growing demand for construction machinery in Southeast Asia, the Group began operating steel belt assembly lines
at PT. Topy Undercarriage Indonesia. In the Steel Business, the Group sought to cultivate demand by starting to sell TACoil, a
new concrete reinforcing steel bar that improves processing work efficiency.
Looking at the Group’s financial results for the fiscal year under review, net sales came to ¥286,227 million (up 24.2% year onyear), mainly reflecting the sale of a greater number of components, including parts for the undercarriages of construction
machinery and the effects of new consolidation in the passenger car wheel business. Meanwhile, operating profit was ¥7,505
million (down 6.2% year on year) because of an opportunity loss arising from the trouble at the steelmaking facilities at
Toyohashi Works in October 2018. However, ordinary profit came to ¥9,357 million (up 16.5% year on year), mainly attributable
to the posting of insurance claim income. Profit attributable to owners of parent was ¥7,114 million (up 29.3% year on year).
Performance by Segment(Steel Business)
In the electric furnace industry, demand for steel materials remained firm, primarily among construction companies. Meanwhile,harsh conditions persisted in terms of costs given sustained high prices for steel scrap, a key raw material, and a surge in prices
for sub-materials such as electrode and alloy iron.
Given these circumstances, the Group continued to work to expand sales volume and improve costs and promoted an
improvement in sales prices. In addition, the Group accomplished the early restoration of the troubled steelmaking facilities andmade efforts to recover after the restoration. As a result, the segment achieved net sales of ¥80,442 million (up 12.5% year onyear) and operating profit of ¥2,248 million (up 16.7% year on year).
(Automotive & Industrial Machinery Components Business)
In the construction machinery industry, global demand for hydraulic shovels expanded, mainly in China and North America. Demand
for mining machinery also remained strong worldwide. In the automotive industry, the number of automobiles produced in Japanremained almost unchanged from the previous year.
Given these conditions, the Group made steady efforts to meet demand for parts for the undercarriages of construction machinery andvery large wheels for mining. In addition, thanks to the effects of new consolidation in the passenger car wheel business, net sales
came to ¥188,175 million (up 31.8% year on year). However, operating profit was ¥7,833 million (down 7.1% year on year) mainly
due to higher costs caused by rising material prices and the generation of temporary expenses for acquisitions.
(Power Business)
The Group worked on the stable supply of electricity in line with its business plan. Chiefly due to a rise in wholesale electricity
price, the segment achieved net sales of ¥10,567 million (up 10.1% year on year) and operating profit of ¥1,228 million (up41.0% year on year).
(Others)
The Group focused on the expansion of overseas and domestic sales of synthetic mica used in cosmetics and other products. It
also sought to improve sales organizations for crawler robots, while at the same time accelerating the development of a crawler
mechanism for back/forth and left/right movement to cater to the needs of a range of businesses such as those in the agriculture
and distribution industries. The Group also saw strong performance overall in other businesses, which included indoor andoutdoor sign systems, civil engineering and construction, the leasing of real estate such as Topy-Rec Plaza (Minami-Suna, Kotoku, Tokyo), and the operation of the sports club OSSO. As a result, net sales came to ¥7,041 million (up 7.5% year on year), with
operating profit of ¥1,550 million (up 5.8% year on year).
–4–(2) Overview of Financial Position for the Fiscal Year under Review
Asset, liabilities and net assets
Total assets at the end of the consolidated fiscal year under review increased by ¥36,096 million from the end of the previous
consolidated fiscal year, to ¥284,198 million. Primary factors for the increase included a ¥9,381 million increase in inventories, a¥7,779 million increase in property, plant and equipment, a ¥6,565 million increase in notes and accounts receivable-trade, a¥6,491 million increase in cash and deposits, a ¥4,366 million in investments and a ¥2,081 million increase in intangible assets.
Liabilities were ¥171,836 million, an increase of ¥33,593 million from the end of the previous consolidated fiscal year. This wascaused mainly by an increase of ¥14,521 million in long-term loans payable, an increase of ¥8,131 million in accounts payable
and an increase of ¥2,057 million in short-term loans payable.
Net assets were ¥112,362 million, an increase of ¥2,502 million from the end of the previous consolidated fiscal year. This was
mainly due to an increase of ¥5,229 million in retained earnings, a decrease of ¥1,685 million in valuation difference on
available-for-sale securities and a decrease of ¥1,054 million in foreign currency translation adjustment. As a result, net assets per
share stood at ¥4,737.26 and the net worth ratio was 39.2%.
Cash flows
Cash and cash equivalents (hereinafter referred to as “funds”) during this consolidated fiscal year stood at ¥29,560 million (anincrease of ¥6,523 million year on year). This was due to the allocation of increased funds from operating activities and financing
activities to the purchase of property, plant and equipment in investment activities.
(Cash flows from operating activities)
Funds provided by operating activities stood at ¥11,725 million (an increase of ¥945 million year on year). This mainly reflected
profit before income taxes of ¥10,345 million, depreciation of ¥11,110 million, inventories of ¥4,617 million, and an increase intrade receivables of ¥3,303 million.
(Cash flows from investment activities)
Funds used in investment activities stood at ¥20,835 million (an increase of ¥14,973 million year on year). This mainly reflected
the purchase of property, plant and equipment of ¥15,181 million, repayment for the purchase of shares of subsidiaries resulting
in a change in the scope of consolidation of ¥11,043 million and proceeds from the sale of property, plant and equipment of¥5,834 million.
(Cash flows from financing activities)
Funds provided by financing activities stood at ¥15,936 million (an increase of ¥14,102 million year on year). This mainlyreflected proceeds from long-term loans payable of ¥18,700 million and the repayment of long-term loans payable of ¥4,846
million.
(Reference) Cash flow-related indicators
Fiscal 2014

Fiscal 2015

Fiscal 2016

Fiscal 2017

Fiscal 2018

Equity ratio (%)

42.1

42.7

46.6

43.9

39.2

Equity ratio based on market value (%)

26.2

22.7

31.1

29.3

18.3

The ratio of interest-bearing debt tooperating cash flow (years)

4.0

3.6

5.5

5.7

6.8

Interest coverage ratio (times)

17.0

16.9

12.0

17.3

16.0

Equity ratio: Shareholders’ equity / Total assets
Equity ratio based on market value: Market capitalization / Total assets
The ratio of interest-bearing debt to operating cash flow: Interest-bearing debt / Cash flows
Interest coverage ratio: Cash flows / Interest payments(Note 1) All amounts are on a consolidated basis.
(Note 2) Total market value for stocks is calculated on the basis of the number of outstanding shares, excluding treasury stock.
(Note 3) Cash flows are cash flows from operating activities.
(Note 4) Interest-bearing debt is all the debt with interest on the consolidated balance sheet.

–5–(3) Future Outlook
Going forward, the Japanese economy is expected to continue to recover moderately thanks to improvements in employment/
income conditions and the government’s economic policy, among other factors. However, the global economy faces uncertain
factors, such as the exacerbation of trade issues mainly between the United States and China and the economic outlook for China.
Accordingly, the Group will need to keep a close eye on its operating environment.
In these circumstances, the Group will strive to continue reducing costs and to improve sales prices in response to sharp rises in
raw material prices, while focusing on demand trends in each business segment. The Group will also focus on developing new
products that will meet market needs.
With respect to the consolidated business performance for the next fiscal year, the Group forecasts net sales of ¥307,000 million,
operating profit of ¥11,000 million, ordinary profit of ¥11,400 million and profit attributable to owners of parent of ¥8,000
million.
(4) Basic Profit Allocation Policy, and Dividends for the Current and New Fiscal Year
The Company’s basic policy for profit distribution is to return profits to its shareholders based on the consolidated businessresults, while at the same time increasing retained earnings for the development of future business and the strengthening ofcorporate structure. The Company will allocate retained earnings to investment in new business and the development of newtechnologies and products that will contribute to long-term, stable business development, thereby enabling it to strengthen its
corporate structure and global competitiveness. In terms of the index of profit return based on consolidated business earnings, itwill aim for an approximate range of 30% to 35%, a consolidated payout ratio that will be determined after carefully studying thepossibility of continuing to pay dividends consistently.
For the year-end dividend for this consolidated fiscal year, the Company plans to pay ¥70 per share. Given the interim dividendof ¥20 per share paid, the annual dividend for the fiscal year under review will be ¥90 per share.
In terms of the dividends for the next fiscal year, the Company plans to pay ¥90 yen per year.

2. Basic Policy for the Selection of Accounting Standards
The Group adopts the Japanese accounting standards, taking into account the possibility of comparing terms of consolidated
financial statements and performances between the companies.
It will work to adopt the International Financial Reporting Standards as appropriate, considering the situation in both Japan andother countries.

–6–3. Consolidated Financial Statements and Key Notes(1) Consolidated Balance Sheets(Million yen)Previous Consolidated
Accounting Year
(March 31, 2018)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts

Current Consolidated
Accounting Year
(March 31, 2019)23,17953,253
17,572
5,503
12,4526,600(65)

29,671
59,81822,327
7,413
15,1697,417(66)

118,495

141,751

85,948(57,633)

93,166(62,636)

28,315
186,638(145,132)

30,530204,197(157,286)

Machinery, equipment and vehicles, net
Land
Leased assets
Accumulated depreciation

41,506
15,897
3,493(2,172)

46,911
15,287
5,089(3,290)

Leased assets, net
Construction in progress
Other
Accumulated depreciation

1,320
3,871
38,586(37,290)

1,799
3,696
42,392(40,630)

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation

1,295

1,761

Total property, plant and equipment
Intangible assets
Other

Other, net

92,20699,986

3,078

5,160

Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Net defined benefit asset
Other
Allowance for doubtful accounts

3,078

5,160

29,351
469
1,342
365
2,852
(60)

27,093
478
2,340
345
7,100
(58)

Total investments and other assets
Total non-current assets
Total assets–7–

34,32137,300129,606

142,447

248,102284,198

(Million yen)Previous Consolidated
Accounting Year
(March 31, 2018)
Liabilities
Current liabilities
Notes and accounts payable-trade
Electronically recorded obligations-operating
Short-term loans payable
Current portion of bonds
Lease obligations
Income taxes payable
Other

Current Consolidated
Accounting Year
(March 31, 2019)

26,324
17,694
17,356
5,000
582
1,715
14,21831,88020,26819,414
5,000
878
2,170
18,29382,891

97,90720,80017,940
875
494
158
28
42
248
11,249276
3,238

22,80032,461
888
1,093
162
21
41
371
12,617373
3,096

55,35173,929Total liabilities

138,242

171,836

Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares

20,98318,652
63,302(1,734)

20,98318,606
68,532(1,708)101,203

106,413

Accumulated 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

7,970
(9)
31
(235)

6,284
(5)
(1,023)(365)

Total accumulated other comprehensive income

7,756

4,890

Total current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for corporate officers’ retirement benefits
Provision for officers’ stock benefits
Provision for directors’ retirement benefits
Reserve for repairs
Net defined benefit liability
Asset retirement obligations
Other
Total non-current liabilities

Total shareholders’ equity

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

–8–

899

1,057

109,859

112,362

248,102284,198

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Million yen)

Net sales
Cost of sales

Previous Consolidated
Current Consolidated
Accounting Year
Accounting Year
(April 1, 2017 - March 31, 2018) (April 1, 2018 - March 31, 2019)230,462
286,227
192,741
244,108

Gross profit
Selling, general and administrative expenses

37,72029,723

42,11834,613Operating profit
Non-operating income
Interest income
Dividends income
Share of profit of entities accounted for using equity
methodInsurance income
Other

7,997

7,505

69
683

105
712

144

583

31
382

1,661
368

Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Premium paid
Other

1,311

3,431

608
–
135
530

669
252
131
524

Total non-operating expenses

1,274

1,578

8,034

9,357

266
520
3,066

3,222
0
–

3,853

3,222

303
496
1,089
2,007
55

681
268
–
1,188
97

Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on bargain purchaseTotal extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Loss on valuation of investment securities
Impairment loss
Other

3,953

2,234

Profit before income taxes

Total extraordinary losses

7,933

10,345

Income taxes - current
Income taxes - deferred

2,402
(70)

3,737
(546)

Total income taxes

2,331

3,191

Profit

5,602

7,154

Profit attributable to non-controlling interests
Profit attributable to owners of parent

–9–

101

40

5,500

7,114

(Consolidated Statements of Comprehensive Income)(Million yen)

ProfitOther 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
Share of other comprehensive income of associates
accounted for using equity method

Previous Consolidated
Current Consolidated
Accounting Year
Accounting Year
(April 1, 2017 - March 31, 2018) (April 1, 2018 - March 31, 2019)
5,602
7,154

Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests– 10 –

1,354
5
(310)
542

(1,608)
4
(921)
(129)

5

(264)

1,597

(2,920)

7,199

4,234

7,107

4,248

91

(14)

(3) Consolidated Statements of Changes in Net Assets
Previous Consolidated Accounting Year (April 1, 2017 - March 31, 2018)(Million yen)
Shareholders’ equity
Capital stock
Balance at the beginning of year

Capital surplus

20,983Retained earnings

18,625

Total shareholders’equityTreasury shares

59,922(1,728)97,801

Changes of items during period
Dividends of surplus(2,120)(2,120)

Profit attributable to owners ofparent

5,500

5,500

Purchase of treasury shares

(13)

(13)

Disposal of treasury shares

7

7

Change in ownership interest ofparent due to transactions with
non-controlling interests

27

27

Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at the end of year

–

27

3,380

(5)

3,402

20,98318,652

63,302(1,734)

101,203

Accumulated other comprehensive income

Balance at the beginning of year

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedgesForeigncurrencytranslation
adjustment

6,610

(14)

332

Total
Remeasurements accumulatedof definedotherbenefit planscomprehensive
income
(778)

6,149

Noncontrollinginterests

Total net assets

902

104,853

Changes of items during period
Dividends of surplus(2,120)

Profit attributable to owners ofparent

5,500

Purchase of treasury shares(13)

Disposal of treasury shares

7

Change in ownership interest ofparent due to transactions with
non-controlling interests

27

Net changes of items other thanshareholders’ equity

1,359

4

(301)

543

1,606

(2)

1,603

Total changes of items during
period

1,359

4

(301)

543

1,606

(2)

5,005

Balance at the end of year

7,970

(9)

31

(235)

7,756

899

109,859– 11 –

Current Consolidated Accounting Year (April 1, 2018 - March 31, 2019)(Million yen)
Shareholders’ equity
Capital stock
Balance at the beginning of year

Capital surplus

20,983Retained earnings

18,652

Total shareholders’equityTreasury shares

63,302(1,734)

101,203

Changes of items during period
Dividends of surplus(1,884)(1,884)

Profit attributable to owners ofparent

7,114

7,114

Purchase of treasury shares
Disposal of treasury shares(0)Change in ownership interest ofparent due to transactions with
non-controlling interests

(45)

(5)

(5)

31

31
(45)

Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at the end of year

–

(45)

5,229

25

5,209

20,98318,606

68,532(1,708)106,413

Accumulated other comprehensive income

Balance at the beginning of year

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedgesForeigncurrencytranslation
adjustment

7,970

(9)

31

Total
Remeasurements accumulatedof definedotherbenefit planscomprehensive
income
(235)

7,756

Noncontrollinginterests

Total net assets

899

109,859

Changes of items during period
Dividends of surplus(1,884)

Profit attributable to owners ofparent7,114

Purchase of treasury shares(5)

Disposal of treasury shares

31

Change in ownership interest ofparent due to transactions with
non-controlling interests(45)

Net changes of items other thanshareholders’ equity(1,685)

4(1,054)(129)(2,865)157(2,707)

Total changes of items during
period

(1,685)

4(1,054)(129)(2,865)

157

2,502

Balance at the end of year

6,284

(5)

(1,023)

(365)

4,890

1,057

112,362– 12 –

(4) Consolidated Cash Flow Statements(Million yen)Previous Consolidated
Current Consolidated
Accounting Year
Accounting Year
(April 1, 2017 - March 31, 2018) (April 1, 2018 - March 31, 2019)
Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Gain on bargain purchase
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in allowance for executive
directors’ retirement benefits
Increase (decrease) in allowance for periodic repairs
Increase (decrease) in net defined benefit liability
Interest and dividend income
Interest expenses
Insurance income
Share of (profit) loss of entities accounted for using
equity method
Loss (gain) on sales of short-term and long-term
investment securities
Loss (gain) on valuation of short-term and long-term
investment securities
Loss (gain) on sales and retirement of property, plantand equipment
Decrease (increase) in notes and accounts receivable trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable trade
Increase/decrease in other assets/liabilities
SubtotalInterest and dividend income received
Interest expenses paid
Proceeds from insurance income
Income taxes paid
Net cash provided by (used in) operating activities– 13 –

7,933
10,599(3,066)2,007–
0

10,345
11,110
–
1,188
93
(28)

(37)

(8)

(57)
385
(752)
608
(31)

123
598
(817)
669
(1,661)

(144)

(583)

(520)

0

1,089

–

533

(2,273)(7,497)(3,303)(7,007)(4,617)

8,707

2,557

(1,292)75

11,457

13,469

808
(623)
31
(893)

842
(730)
1,661
(3,516)

10,78011,725

(Million yen)Previous Consolidated
Current Consolidated
Accounting Year
Accounting Year
(April 1, 2017 - March 31, 2018) (April 1, 2018 - March 31, 2019)
Cash flows from investing activities
Net decrease (increase) in time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of investment securities
Proceeds from sales of investment securities
Payments of loans receivableCollection of loans receivable
Purchase of intangible assets
Proceeds from purchase of shares of subsidiaries
resulting in change in scope of consolidation
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Other, net

86(8,330)916(1,474)
883
(16)
173
(1,449)110(15,181)
5,834
(35)
0
(29)
19
(440)

3,181

–

–

(11,043)

168

(70)

Net cash provided by (used in) investing activities(5,861)(20,835)

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of bonds
Redemption of bonds
Increase (decrease) in deposits received through CMS
Repayments of lease obligations
Purchase of treasury shares
Proceeds from disposal of treasury shares
Cash dividends paid
Dividends paid to non-controlling interests

1,741
7,565
(6,351)
4,954(3,300)
0
(578)
(13)
0
(2,117)(66)

2,847
18,700(4,846)
6,958(5,000)
0
(765)
(5)
0
(1,882)(69)

Net cash provided by (used in) financing activities

1,834

15,936

(65)

(303)

Net increase (decrease) in cash and cash equivalents

6,687

6,523

Cash and cash equivalents at the beginning of year

16,34923,036

Cash and cash equivalents at the end of year

23,03629,560Effect of exchange rate change on cash and cash
equivalents– 14 –

(5) Notes Regarding the Consolidated Financial Statements(Note related to going-concern assumption)
None(Segment information)
1. Summary of the reportable segments
The reportable segments of the Company are units constituting the Company that are to be regularly examined by the Board of
Directors to determine the allocation of management resources and evaluate the business results, as their financial information
is available separately from that of others.
The Company has business divisions by product and service, and each business division develops a comprehensive domestic
and overseas strategy for the products and services it offers in conducting its business activities.
Accordingly, the Company consists of segments by product and service based on the business divisions. There are threereportable segments: the Steel Business, the Automotive & Industrial Machinery Components Business and the PowerBusiness.
The Steel Business produces general section steel, deformed section steel, deformed bar steel and other steel products. The
Automotive & Industrial Machinery Component Business produces various wheels for automobiles, industrial vehicles andconstruction machinery, pressing products, components for construction machinery, industrial fasteners, etc. The PowerBusiness engages in the wholesale of electricity.
2. Method of calculating amounts of net sales, profits or losses, assets and other items by reportable segment
The accounting method for the business segments reported is the same as that stated in “Important basic matters for
preparation of the consolidated financial statements.” In addition, the profits of the reportable segments show operating profits.
The internal revenue and transfer between segments are based on the actual market price.

– 15 –

3. Information regarding amounts of net sales, profits or losses, assets and other items by reportable segment
Previous consolidated fiscal year (from April 1, 2017 to March 31, 2018)(Million yen)
Reportable segment

Steel

Automotive &Industrial
Machinery
Components

Power

Total

Others(Note) 1

Total

Amount ofadjustment(Note) 2

Amountrecorded intheconsolidated
financialstatements(Note) 3

Net sales
Net sales to outside
customers

71,525

142,790

9,596

223,913

6,548

230,462–

230,462Internal sales or transfer
between segments

19,782––

19,782–

19,782(19,782)–
230,462

Total

91,308142,790

9,596

243,695

6,548

250,244(19,782)

Profits of segment

1,925

8,433

871

11,230

1,465

12,695(4,698)

7,997

Assets of segment

94,420110,225

5,495

210,141

14,847

224,988

23,114

248,102

Depreciation

4,296

5,224

541

10,061454

10,51682

10,599

Increase in property, plantand equipment andintangible assets

4,118

5,635

367

10,121

488

10,610

1,522

12,132Other items(Notes) 1. The category “Others” includes the business segments not included in the reportable segments such as synthetic mica,
crawler robots, indoor and outdoor sign systems, civil engineering and construction, the leasing of real estate and theoperation of the sports club.
2. The details of the adjustment are as explained below.
(1) Profits of segment in an amount of a loss of ¥4,698 million are common corporate expenses, etc. not allocated to
the respective reportable segments. The common corporate expenses are mainly the expenses related to theadministrative divisions of the Company that are not attributable to the reportable segments.
(2) Assets of segment in an amount of ¥23,114 million include the corporate assets of ¥29,172 million not allocated to
the respective reportable segments and the elimination of intra-company transactions between segments in an
amount of -¥6,058 million. The corporate assets are mainly the assets related to the administrative divisions of theCompany that are not attributable to the reportable segments.
(3) Of the Other items, depreciation of ¥82 million mainly relates to the equipment of the administrative divisions of
the Company. In addition, an increase in property, plant and equipment and intangible assets in an amount of¥1,522 million is mainly capital spending of the administrative divisions of the Company.
3. Profit of segment is adjusted with operating profit recorded under the consolidated financial statements.

– 16 –

Consolidated fiscal year under review (from April 1, 2018 to March 31, 2019)(Million yen)
Reportable segment

Steel

Automotive &Industrial
Machinery
Components

Power

Total

Others(Note) 1

Total

Amount ofadjustment(Note) 2

Amountrecorded intheconsolidated
financialstatements(Note) 3

Net sales
Net sales to outside
customers

80,442

188,175

10,567279,185

7,041

286,227–

286,227

Internal sales or transfer
between segments

23,838––23,838–23,838(23,838)–
286,227

Total

104,281

188,175

10,567303,024

7,041

310,065(23,838)

Profits of segment

2,248

7,833

1,228

11,3091,550

12,860(5,355)

7,505

Assets of segment

97,694

137,2445,902

240,841

16,122

256,963

27,235284,198

Depreciation

4,497

5,201

555

10,254312

10,567543

11,110

Increase in property, plantand equipment andintangible assets

6,505

16,251

745

23,503

1,208

24,711

389

25,100

Other items(Notes) 1. The category “Others” includes the business segments not included in the reportable segments such as synthetic mica,
crawler robots, indoor and outdoor sign systems, civil engineering and construction, the leasing of real estate and theoperation of the sports club.
2. The details of the adjustment are as explained below.
(1) Profits of segment in an amount of a loss of ¥5,355 million are common corporate expenses, etc. not allocated to
the respective reportable segments. The common corporate expenses are mainly the expenses related to theadministrative divisions of the Company that are not attributable to the reportable segments.
(2) Assets of segment in an amount of ¥27,235 million include the corporate assets of ¥33,229 million not allocated to
the respective reportable segments and the elimination of intra-company transactions between segments in an
amount of -¥5,994 million. The corporate assets are mainly the assets related to the administrative divisions of theCompany that are not attributable to the reportable segments.
(3) Of the Other items, depreciation of ¥543 million mainly relates to the equipment of the administrative divisions of
the Company. In addition, an increase in property, plant and equipment and intangible assets in an amount of ¥389
million is mainly capital spending of the administrative divisions of the Company.
3. Profit of segment is adjusted with operating profit recorded under the consolidated financial statements.

– 17 –

(Information per share)Previous consolidated fiscal year
Consolidated fiscal year under review(from April 1, 2017 to March 31, 2018) (from April 1, 2018 to March 31, 2019)
Net assets per share
Profit per share

4,640.13 yen

4,737.26 yen

234.25 yen

302.85 yen(Notes) 1. Profit per share after full dilution is not stated because there are no dilutive shares.
2. In the calculation of net assets per share, the shares of the Company that are held by the trust related to the stockcompensation plan for directors, etc. are included in the treasury shares that are deducted from the total number ofshares issued and outstanding at the end of the fiscal year (68 thousand shares for the previous consolidated fiscal
year and 52 thousand shares for the consolidated fiscal year under review).
In addition, also in the calculation of profit per share, the said shares above are included in the treasury shares thatare deducted in the calculation of the average number of shares during the fiscal year (69 thousand shares for theprevious consolidated fiscal year and 58 thousand shares for the consolidated fiscal year under review).
3. The bases for the calculation of profit per share are as shown below.
Previous consolidated fiscal year
Consolidated fiscal year under review(from April 1, 2017 to March 31, 2018) (from April 1, 2018 to March 31, 2019)
Profit attributable to owners of parent(million yen)

5,500

7,114

Amount not attributable to commonshareholders (million yen)––

Profit attributable to owners of parent inrelation to common shares (million yen)

5,500

7,114

Average number of shares during the
fiscal year (thousand shares)

23,482

23,490(Important events after the reporting period)
None– 18 –