Consolidated Basis Results of the Fiscal 2022
(April 1, 2022 – March 31, 2023)
May 10, 2023
TOPY INDUSTRIES, LIMITED
Stock listing: Tokyo, Nagoya stock exchanges
7231
URL: http://www.topy.co.jp/en/index.html
Nobuhiko Takamatsu, Representative Director, President and CEO
Tetsuya Sakai, Managing Executive Officer and 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 23, 2023
Scheduled date for dividend payment:
June 6, 2023
Scheduled date for submission of securities report:
June 23, 2023
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 2022 (April 1, 2022 - March 31, 2023)(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

Million yen％

Million yen％

Fiscal 2022
334,496
23.3
7,175
－
Fiscal 2021
271,178
20.5(1,706)－
Note: Comprehensive income:Fiscal 2022 ¥8,932 million (48.3%)
Profit per share
Profit per shareafter full dilution
Yen

Yen

％

Fiscal 2022
276.51－
Fiscal 2021
16.61－
(For reference) Share of profit or loss of entities accounted for using equity method:(2) Consolidated Financial Position
Total assets

Net assets

Million yen(3) Consolidated Cash Flows
Cash flow fromoperating activities

Million yen

％

％

5.4
0.4
Fiscal 2022
Fiscal 2021

％

2.8
(0.5)
¥452 million¥ (1,071) million

Equity ratio

Yen％

121,425
113,703¥120,265 million

41.1
39.9
Fiscal 2021
¥112,657 million

Cash flow frominvesting activities

2.1
(0.6)

Net assets per share

Million yen

Fiscal 2022
292,322
Fiscal 2021
282,195(For reference) Shareholders’ equity:
Fiscal 2022

Fiscal 2022
Fiscal 2021

％

8,043
6,321
－
－
(1,401)386(33.2)－
Fiscal 2021 ¥6,024 million (23.3%)
Ordinary profit Operating profit
Return on equity
to total assets
to net sales

Cash flow fromfinancing activities

5,268.92
4,902.25

Cash and cash equivalents
at end of period

Million yen

Million yen

Million yen

Million yen

15,058(5,528)(8,360)(2,609)(4,677)
3,527

22,58819,8502. Dividends
Dividends per share
1Q-endFiscal 2021
Fiscal 2022
Fiscal 2023 (Forecasts)

2Q-end3Q-endEnd of FY

Full fiscal year

Total dividends Payout ratio(annual)(consolidated)

Dividends/
net assets(consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen

％

％

－
－
－

0.00
20.00
－

－
－
－

20.00
68.00
－

20.00
88.00
88.00

460
2,012

120.4
31.8
30.9

0.4
1.7

Note: The Company's basic policy is to pay dividends of surplus twice a year, comprising interim and year-end dividends. Since theexpected amount of interim dividends has not been determined at this time, the total dividend is displayed.
3. Consolidated Financial Forecasts for Fiscal 2023 (April 1, 2023- March 31, 2024)(Percentage figures are changes from the previous fiscal year)
Profit attributable to
Net sales
Operating profit
Ordinary profit
Profit per shareowners of parent
Full year

Million yen％

Million yen％

Million yen％

Million yen％

Yen

342,000

2.2

9,500

32.4

9,600

19.4

6,500

2.8

284.77

* NOTE(1) Changes in the State of Material Subsidiaries during the Period: None
Newly included: – (Name) – Excluded: – (Name) –(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 shares)
Fiscal 2022
24,077,510 sharesFiscal 2021(b) Number of treasury shares at the end of the period
Fiscal 2022
1,252,026 sharesFiscal 2021(c) Average number of shares issued during the period
Fiscal 2022
22,860,777 sharesFiscal 2021

24,077,510 shares
1,096,640 shares
23,274,460 shares(For reference) Non-Consolidated Results
1. Non-Consolidated Operating Results and Financial Position of the Fiscal 2022 (April 1, 2022 - March 31, 2023)(1) Non-Consolidated Operating Results(Percentage figures are changes from the previous fiscal year)
Net sales
Fiscal 2022
Fiscal 2021

Operating profit

Ordinary profit

ProfitMillion yen％

Million yen％

Million yen％

Million yen％

204,103
167,502

21.9
34.7

3,896
(2,973)

－
－

6,453
142

－
－

6,089
3,370

80.7
－

Profit per shareafter full dilution

Profit per share
Yen

Yen

Fiscal 2022

266.35－

Fiscal 2021

144.77－(2) Non-Consolidated Financial Position
Total assets

Net assets

Million yen

Equity ratio

Million yen

Fiscal 2022
221,596
Fiscal 2021
212,562(For reference) Shareholders’ equity: Fiscal 2022

79,42074,790¥79,420 million

Net assets per share
Yen％

Fiscal 2021

35.8
35.2
¥74,790 million

3,478.92
3,253.98

2. Non-Consolidated Financial Forecasts for Fiscal 2023 (April 1, 2023 - March 31, 2024)(Percentage figures are changes from the previous fiscal year)
Profit per share
Net sales
Operating profit
Ordinary profit
ProfitFull year

Million yen％

Million yen％

Million yen％

Million yen％

Yen

226,000

10.7

4,300

10.4

5,900

(8.6)

4,100

(32.7)

179.31* 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.)
All future descriptions in this disclosure has been compiled based on information currently available. For assumed conditions
underlying the earnings forecast, please refer to “1. Overview of Operating Results” on page 2. These descriptions may differ
from actual results and effects on earnings is not limited to this.
(Obtaining supplementary documents of financial results)
Supplementary documents will be posted on the Company’s website.

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

2(1) Overview of Operating Results for the Fiscal Year under Review ....................................................................................

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

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

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

4

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

5

3. Consolidated Financial Statements and Important Notes ........................................................................................................

6(1) Consolidated Balance Sheets .............................................................................................................................................

6(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income .........................................

8

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

8

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

9(3) Consolidated Statements of Changes in Net Assets ...........................................................................................................

10(4) Consolidated Cash Flow Statements ....................................................................................... ...........................................

12(5) Notes Regarding the Consolidated Financial Statements ...................................................................................................

14(Note related to going-concern assumption) ....................................................................................................................

14(Segment information) ....................................................................................................................................................

14(Information per share) ........................................................................................................................... ..........................

15(Important events after the reporting period) ...................................................................................................................

15

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 10, 2023 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.

- 1 -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 experienced a moderate recovery overall, despite
geopolitical risks from the protraction of the situation in Ukraine and unstable market conditions caused by monetary tighteningaround the world. There were signs of a gradual recovery in the Japanese economy as well, as the employment situation improvedand capital investment was on an increasing trend amid the normalization of economic activities. On the other hand, the businessenvironment surrounding TOPY INDUSTRIES, LIMITED (the “Group”) remained uncertain due to the impacts from reduced
production of automakers caused by semiconductor and other parts shortages and weaker economic activities in China, in addition
to cost increases continued for coal, electricity, other raw materials, and logistics, etc.
Under these circumstances, the Group launched its new Medium-term Management Plan, TOPY Active & Challenge 2025, which
will cover the period from FY2022 to 2025. We have set the four areas of promote segment management, strengthen overseas
profitability, strengthen domestic business base, and contribute to decarbonization as the Group Basic Strategy, and we are steadily
implementing measures to strengthen profitability utilizing the business foundation established in the previous Medium-termManagement Plan. Moreover, we are working to promote sustainability management that leverages the Group’s strengths to create
new value and solve social issues, through TOPY Sustainable Green Vision 2050, which seeks to achieve an enriching andsustainable society in 2050. As part of these efforts, we have promoted health and productivity management initiatives to improvethe vitality of our employees, and we were recognized as a Certified Health & Productivity Management Outstanding Organizationin 2023.
In the consolidated fiscal year under review, net sales reached a record high of ¥334,496 million (up 23.3% from the previous
fiscal year) thanks to the optimization of sales prices in response to rising costs of raw materials, energy such as electric power,
etc., and other raw materials, along with our efforts to win strong demand for ultra-large wheels for mining equipment. Profit also
recovered significantly from the previous fiscal year amid efforts to optimize the product mix of steel products and improve costs
through structural reforms, etc. Operating income totaled ¥7,175 million (compared to an operating loss of ¥1,706 million in theprevious fiscal year), ordinary income reached ¥8,043 million (ordinary loss of ¥1,401 million in the previous fiscal year), andprofit attributable to owners of parent came to ¥6,321 million (up 1,535.1% compared to the previous fiscal year). As a result, weachieved a positive free cash flow, and our return on equity (ROE) was 5.4% (0.4% in the previous fiscal year), rising above 5.0%
for the first time in four years.
Performance by Segment(Steel Business)
In the steel industry, domestic crude steel production volume decreased year on year due to a decline in demand for steel materials
for construction and manufacturing, which are the main markets. The price of steel scrap, the main raw material, trended at elevatedlevels, while the prices of other raw materials also remained high.
Given these circumstances, the Group worked to optimize steel sales prices in response to the costs of steel scrap, energy,
including electricity, etc., and other raw materials and also optimized the product mix based on market needs. As a result, net sales
increased to ¥107,971 million (up 21.4% year on year), and operating profit increased to ¥8,038 million (compared to an operating
loss of ¥625 million in the same period of the previous year).
(Automotive & Industrial Machinery Components Business)
In the automotive industry, the production volume in Japan moderately recovered from the level in the previous year due toshortages of semiconductors and other parts resulting in a slower than anticipated recovery in automobile production. In theconstruction machinery industry, demand was strong in the United States and Southeast Asia, but sales volume of hydraulicexcavators declined in Japan. Demand for mining machinery remained strong amid robust demand for resources.
Given these conditions, the Group worked to optimize sales prices in response to the rises in the costs of raw materials in addition
to steadily winning demand for ultra-large wheels for mining equipment. At the same time, the Group strived to reduced fixed costsby revamping its production system, etc., through structural reforms. However, net sales came to 198,147 million (up 19.0% year
on year) and operating profit totaled ¥4,016 million (down 16.5% year on year), impacted significantly by the decrease in sales
volume of models using our wheels for passenger vehicles and substantially higher costs for marine transport and energy, etc.

- 2 -(Power Business)
The business environment remained more challenging than expected in the power business due to coal prices, a fuel for power
generation, remaining at unprecedented historical highs and delayed improvement in electricity selling prices, owing to higher costs
caused by yen weakness. Given these circumstances, the Group worked to optimize electricity selling prices. As a result, net sales
stood at ¥21,957 million (up 125.9% year on year) and the operating loss improved to ¥566 million (compared to an operating lossof ¥1,957 million in the previous year).
(Business Development Business)
The Group manufactures and sells synthetic mica used in cosmetics and other products. In the synthetic mica business, the Group
steadily captured the recovery in demand for cosmetics domestically and internationally. Reflecting this situation, net sales rose
9.1% year on year, to ¥1,043 million with an operating profit amounting to ¥155 million (compared to an operating loss of ¥161
million in the previous fiscal year).
(Leasing Business)
In the leasing business, operating profit was ¥712 million (up 1.9% year on year).
(Others)
The Group operates a civil engineering and construction business, sports club OSSO, and other businesses. Net sales came to¥5,375 million (up 6.5% year on year) and operating profit was ¥492 million (up 1.2% year on year).
(2) Overview of Financial Position for the Fiscal Year under Review
Asset, liabilities and net assets
Total assets at the end of the fiscal year under review stood at ¥292,322 million, an increase of ¥10,126 million from the end of
the previous consolidated fiscal year. This was mainly due to increases of ¥11,125 million in notes and accounts receivable tradeand contract assets and ¥2,703 million in cash and deposits, compared to a decrease of ¥2,675 million in property, plant andequipment.
Total liabilities were ¥170,897 million, an increase of ¥2,404 million compared with the end of the previous consolidated fiscal
year. This was caused mainly by increases of ¥3,053 million in long-term borrowings and ¥2,819 million in electronically recorded
obligations - operating , compared to a decrease of ¥5,501 million in short-term borrowings.
Total net assets came to ¥121,425 million, an increase of ¥7,721 million from the end of the previous consolidated fiscal year.
This was mainly due to increases of ¥5,403 million in retained earnings and ¥3,371 million in foreign currency translation
adjustments. As a result, net assets per share stood at ¥5,268.92, resulting in an equity ratio of 41.1%.
Cash flows
Cash and cash equivalents (hereinafter “funds”) in the fiscal year under review increased by ¥2,737 million from the end of theprevious consolidated fiscal year to ¥22,588 million at the end of the consolidated fiscal year under review.
(Cash flows from operating activities)
Funds gained from operating activities stood at ¥15,058 million (compared to funds used of ¥5,528 million in the previous
consolidated fiscal year). This was mainly attributable to profit before income taxes of ¥7,421 million, depreciation of ¥13,295
million, and an increase in trade accounts receivable of ¥10,351 million.
(Cash flows from investment activities)
Funds used in investment activities stood at ¥5,751 million, an increased of ¥8,360 million from the previous consolidated fiscal
year. This mainly reflected the purchase of property, plant and equipment of ¥8,130 million.
(Cash flows from financing activities)
Funds used in financing activities stood at ¥4,677 million (compared to funds gained of ¥3,527 million in the previous
consolidated fiscal year). This was caused mainly by a decrease of ¥9,900 million in proceeds from long-term borrowings, ¥7,067
million in repayments of long-term debt, and a decrease of ¥6,079 million in short-term borrowings.

- 3 -(Reference) Cash flow-related indicators
Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021

Fiscal 2022

Equity ratio (%)

39.2

40.3

40.6

39.9

41.1

Equity ratio based on market
value (%)

18.3

12.7

12.3

8.6

15.4

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

6.8

4.7

14.1

(15.6)

5.6

Interest coverage ratio (times)

16.0

25.9

11.1

(11.0)

19.6

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 shares is calculated on the basis of the number of outstanding shares, excluding treasury shares.
(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.
(3) Future Outlook
Despite expectations for the moderate recovery to continue, the outlook for the global economy is forecast to remain uncertain,
a rise in geopolitical risks, including the prolonged situation in Ukraine, inflation, and fluctuations in financial and capital markets
amid monetary tightening among other factors. In addition, the business environment surrounding the Group is expected to remain
uncertain. This includes elevated prices of raw materials, energy such as electricity, etc., and other raw materials, the impact ofshortages of semiconductors and other parts on automobile and construction machinery production, and the “2024 problem” inJapan’s logistics industry.
In this environment, the Group will closely monitor demand trends in each business segment and continue to establish sales
prices in response to costs such as raw materials, energy including electricity, etc., other raw materials, and transportation. In
addition, in order to increase profitability in line with the new Medium-term Management Plan “TOPY Active & Challenge 2025,”
we will steadily promote further cost improvements, expansion of high value-added products, strengthening alliances through the
newly established Overseas Business Strategy Department, expanding sales to local companies and steadily promoting the planningand implementation of overseas business strategies aimed at tapping into new markets.
The consolidated forecasts for fiscal 2023 include consolidated net sales of ¥342,000 million, operating profit of ¥9,500 million,
ordinary profit of ¥9,600 million, and profit attributable to owners of parent of ¥6,500 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 shareholders based on the consolidated business results,
while at the same time increasing retained earnings for the development of future business and the strengthening of corporate
structure. The Company will allocate retained earnings to investment in new business and the development of new technologies
and products that will contribute to long-term, stable business development, thereby enabling it to strengthen its corporate structureand global competitiveness. In terms of the index of profit return based on consolidated business earnings, it will aim for an
approximate range of 30% to 35%, a consolidated payout ratio that will be determined after carefully studying the possibility ofcontinuing to pay dividends consistently. Regarding the number of dividends, the Company's basic policy is to pay dividends ofsurplus twice a year, comprising an interim dividend and a year-end dividend. From the next fiscal year's dividends, the target
dividend payout ratio will be changed to 30 to 35% of profit attributable to owners of parent, excluding one-off gains and losses
that do not involve an increase or decrease in cash and deposits.
The Company plans to pay ¥68 per share as the year-end dividend for the fiscal year under review. The interim dividend was ¥20
per share, resulting in an annual dividend of ¥88 per share.
Regarding the dividends for the next fiscal year, we plan to pay an annual dividend of ¥88 yen share, but the forecast amount of
the interim dividend has not been decided.

- 4 -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.

- 5 -3. Consolidated Financial Statements and Important Notes(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2022
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsMerchandise 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
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets- 6 -As of March 31, 2023

21,037

23,74060,54571,671

27,734
6,336
21,3687,483(86)
144,420

27,2297,849
22,156
5,966(41)
158,573

95,234(66,774)
28,460220,159(174,205)
45,953
15,3392,175(1,315)859
2,729
41,682(39,686)
1,995
95,33896,988(69,639)
27,349226,532(182,494)
44,037
15,538
1,314
(767)
547
3,114
43,084(41,008)
2,076
92,662

3,440
3,440

3,014
3,014

27,506
204
1,834
397
9,143
(89)
38,996
137,775
282,195

27,263
201
643
382
9,661
(81)
38,071
133,748
292,322

(Millions of yen)
As of March 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of bonds payable
Lease liabilities
Income taxes payable
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Lease liabilities
Deferred tax liabilities
Provision for corporate officers' retirement benefits
Provision for share awards for directors (and otherofficers)
Provision for retirement benefits for directors (andother officers)
Reserve for repairs
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-salesecurities
Deferred gains or losses on hedges
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- 7 -As of March 31, 2023

33,731
15,55222,807－158
891
14,05587,19636,097
18,372
17,305
7,000
122
871
15,52595,29537,00026,228
235
6,190
163

30,00029,282
213
3,890
150

23

11

25

11

324
9,155
346
1,603
81,296
168,492

441
9,894
267
1,438
75,602
170,897

20,98318,606
62,114(2,287)
99,417

20,98318,606
67,518(2,503)
104,604

9,990

9,693

19
1,692
1,537
13,240
1,045
113,703
282,195

(4)
5,064
908
15,661
1,159
121,425
292,322

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
Fiscal year ended
March 31, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Share of profit of entities accounted for using equity
methodInsurance claim income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodOther
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on reversal of provision incurred from businesscombination
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current assets
Impairment losses
Business structural reform expenses
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent- 8 -Fiscal year ended
March 31, 2023
271,178
240,12231,05532,762(1,706)334,496
289,880
44,61637,440
7,175

135
721
753

134
701
215

－

452

328
468
2,407

79
573
2,155

500

768

1,071

－

530
2,101
(1,401)

519
1,288
8,043

37
3,413

13
72

791

－

4,242

85

7
279
108
648
6
1,050
1,790
1,763
(425)
1,337
453
66
386

4
330
280
75
15
707
7,421
1,759
(775)
983
6,437
116
6,321

(Consolidated Statements of Comprehensive Income)(Millions of yen)
Fiscal year ended
March 31, 2022
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 entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests- 9 -Fiscal year ended
March 31, 2023
453

6,437

481
7
3,169
968

(343)
(24)
3,101
(636)

944

396

5,571
6,024

2,494
8,932

5,868

8,741

156

190

(3) Consolidated Statements of Changes in Net Assets
Previous consolidated fiscal year (April 1, 2021 - March 31, 2022)(Millions of yen)
Shareholders' equity
Share capital

Capital surplus

20,983

Balance at beginning of period

Retained earnings

18,60662,023Cumulative effects of changes
in accounting policies

Total shareholders’equityTreasury shares(1,943)

99,669171
20,983

Restated balance

18,606

171

62,195(1,943)

99,841

Changes during period
Dividends of surplus

(466)

(466)

Profit attributable to owners ofparent386

386

Purchase of treasury shares

(356)

(356)

Disposal of treasury shares

13

13

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

－

－

(80)

(343)

(423)

20,98318,606

62,114(2,287)

99,417

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedgesForeigncurrencytranslation
adjustment

9,443

12

(2,266)

Total
Remeasurements accumulatedof definedotherbenefit planscomprehensive
income568

7,758

Noncontrollinginterests

957

Cumulative effects of changes
in accounting policies
Restated balance

Total net assets

108,385
171

9,443

12

(2,266)

568

7,758

957

108,557

Changes during period
Dividends of surplus(466)

Profit attributable to owners ofparent386

Purchase of treasury shares(356)

Disposal of treasury shares

13

Net changes in items other thanshareholders' equity

546

7

3,958

969

5,482

87

5,570

Total changes during period

546

7

3,958

969

5,482

87

5,146

Balance at end of period

9,990

19

1,692

1,537

13,240

1,045

113,703- 10 -

Consolidated fiscal year under review (April 1, 2022 - March 31, 2023)(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

Retained earnings

Total shareholders’equityTreasury shares

20,98318,606

62,114(2,287)

99,417

20,98318,606

62,114(2,287)

99,417

Cumulative effects of changes
in accounting policies
Restated balance
Changes during period
Dividends of surplus

(917)

(917)

Profit attributable to owners ofparent

6,321

6,321

Purchase of treasury shares

(228)

(228)

Disposal of treasury shares

11

11

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

－

－

5,403

(216)

5,187

20,98318,606

67,518(2,503)

104,604

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedgesForeigncurrencytranslation
adjustment

9,990

19

1,692

Total
Remeasurements accumulatedof definedotherbenefit planscomprehensive
income1,537

13,240Noncontrollinginterests

1,045

Cumulative effects of changes
in accounting policies
Restated balance

Total net assets

113,703
－

9,990

19

1,692

1,537

13,240

1,045

113,703

Changes during period
Dividends of surplus(917)

Profit attributable to owners ofparent

6,321

Purchase of treasury shares(228)

Disposal of treasury shares

11

Net changes in items other thanshareholders' equity

(296)

(24)

3,371

(629)

2,420

113

2,534

Total changes during period

(296)

(24)

3,371

(629)

2,420

113

7,721

Balance at end of period

9,693

(4)

5,064

908

15,661

1,159

121,425- 11 -

(4) Consolidated Cash Flow Statements(Millions of yen)
Fiscal year ended
March 31, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Amortization of goodwill
Insurance claim income
Gain on reversal of provision incurred from businesscombination
Business structural reform expenses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for corporate officers'
retirement benefits
Increase (decrease) in provision for scheduled repairs
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using
equity method
Loss (gain) on sale of short-term and long-term
investment securities
Gain(loss)on sales and disposal of property,plant andequipment,net
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
other
SubtotalInterest and dividends received
Interest paid
Proceeds from insurance income
Payments business structural reform expenses
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Net decrease (increase) in time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of investment securities
Proceeds from sale of investment securities
Loan advances
Proceeds from collection of loans receivable
Purchase of intangible assets
Other, net
Net cash provided by (used in) investing activities- 12 -

Fiscal year ended
March 31, 2023

1,790
12,775
108
124
(328)

7,421
13,295
280
124
(79)

(791)

－

648
67

75
(60)

(48)

(12)

(73)
(263)
(857)
500

116
(152)
(835)
768

1,071

(452)

(3,408)

(72)

249

321

(8,504)(13,809)
8,752(2,524)(4,520)
868
(504)
121
－
(1,492)(5,528)(10,351)
(240)
4,679
2,253
17,082
875
(767)
286
(489)
(1,928)15,058126(8,122)
213
(30)
5,549
(11)
18
(364)
11
(2,609)95(8,130)
9
(13)
208
(12)
13
(456)
(75)
(8,360)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
Redemption of bonds
Increase (decrease) in deposit payable in cash
Repayments of lease liabilities
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
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- 13 -(99)8,243(8,154)
9,929(5,300)
60
(256)
(356)
(469)
(68)
3,527

(6,079)9,900(7,067)
－
－
30
(235)
(228)
(920)
(76)
(4,677)

1,141

717

(3,468)23,31919,8502,737
19,85022,588(5) Notes Regarding the Consolidated Financial Statements(Note related to going-concern assumption)
Not applicable.
(Segment information)
1.
Summary of reportable segments
The reportable segments of the Company are units constituting the Company that are to be regularly examined by the Boardof 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 business divisions. These five reportablesegments are: Steel, Automotive & Industrial Machinery Components, Power, Business Development, and Leasing.
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 Power Businessengages in the wholesale of electricity. The Business Development produces synthetic mica and crawler robots. The Leasing
Business leases real estate.
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 preparationof 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.

(Application of accounting standard for revenue recognition, etc.)
From the fiscal year under review, the Group has changed the name of the reportable segment previously referred to as Scienceto Business Development.
This is a change to the segment name, and there is no impact regarding segment information. Furthermore, segment information
for the previous fiscal year is presented using the new segment name.
3.

Information regarding amounts of net sales, profits or losses, assets and other items by reportable segment
Previous consolidated fiscal year (April 1, 2021 - March 31, 2022)(Millions of yen)
Reportable segment

Steel

Automotive& Industrial
Machinery
Components

Power

Business
Developme
nt

Leasing

Total

Other
(Note) 1

Full fiscal
year

Amountrecorded in
Amount oftheadjustment consolidated(Note) 2
financialstatements(Note) 3

Net sales
Net sales to

88,915

166,542

9,718

956

－

266,133

5,045

271,178－

271,178

Internal sales ortransfer between
segments

23,604

－

－

－

1,138

24,743－24,743(24,743)－

Total

112,519

166,542

9,718

956

1,138

290,876

5,045

295,921(24,743)

271,178

Profits of segment

(625)

4,813

(1,957)

(161)

699

2,768

486

3,255

(4,962)(1,706)

outside customers(Notes)1. The category “Others” includes the business segment not included in the reportable segments and includes indoor
and outdoor sign systems, civil engineering and construction, and operation of sports club.
2. Profits of segment in an amount of a loss of ¥4,962 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.
3. Profit of segment is adjusted with operating loss recorded under the consolidated financial statements.

- 14 -

Consolidated fiscal year under review (April 1, 2022 - March 31, 2023)(Millions of yen)
Reportable segment

Steel

Automotive& Industrial
Machinery
Components

Power

Business
Developme
nt

Leasing

Total

Other
(Note) 1

Full fiscal
year

Amountrecorded in
Amount oftheadjustment consolidated(Note) 2
financialstatements(Note) 3

Net sales
Net sales to107,971

198,147

21,957

1,043－

329,120

5,375

334,496－

334,496

Internal sales ortransfer between
segments

24,820

－

－

－

1,138

25,959－25,959(25,959)－

Total

132,792

198,147

21,957

1,043

1,138

355,080

5,375

360,455(25,959)

334,496

Profits of segment

8,038

4,016

(566)

155

712

12,357492

12,849(5,673)

7,175

outside customers(Notes)1. The category “Others” includes the business segment not included in the reportable segments and includes indoor
and outdoor sign systems, civil engineering and construction, and operation of sports club.
2. Profits of segment in an amount of a loss of ¥5,673 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.
3. Profit of segment is adjusted with operating profit recorded under the consolidated financial statements.
(Information per share)Previous consolidated fiscal year
Consolidated fiscal year under review(from April 1, 2021 to March 31, 2022) (from April 1, 2022 to March 31, 2023)
Net assets per share

4,902.25 yen

5,268.92 yen

16.61 yen276.51 yen

Profit per share(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 stock compensation planfor directors, etc. are included in the treasury shares that are deducted from the total number of shares issued and outstanding at theend of the fiscal year (42 thousand shares for the previous consolidated fiscal year and 36 thousand shares for the consolidated fiscal
year under review).
In addition, also in the calculation of profit (loss) per share, the said shares above are included in the treasury shares that are deductedin the calculation of the average number of shares during the fiscal year (44 thousand shares for the previous consolidated fiscal year
and 38 thousand shares for the consolidated fiscal year under review).
3. The bases for the calculation of profit (loss) per share are as shown below.
Previous consolidated fiscal year
Consolidated fiscal year under review(from April 1, 2021 to March 31, 2022) (from April 1, 2022 to March 31, 2023)
Profit attributable to owners of parent

386

6,321

－

－

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

386

6,321

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

23,274

22,860(million yen)Amount not attributable to common shareholders(million yen)

(Important events after the reporting period)
Not applicable.

- 15 -