Consolidated Basis Results of the Fiscal 2020
(April 1, 2020 – March 31, 2021)
May 11, 2021
TOPY INDUSTRIES, LIMITED
Stock listing: Tokyo, Nagoya stock exchanges
7231
URL: http://www.topy.co.jp/english/index.html
Nobuhiko Takamatsu, Representative Director, President and CEO
Tetsuya Sakai, 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 24, 2021
June 3，2021
Scheduled date for dividend payment:
Scheduled date for submission of securities report:
June 24, 2021
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 2020 (April 1, 2020 - March 31, 2021)(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%

Million yen%(14.5)(2,943)
–
(575)
–
578
–
(8.0)
2,851
(62.0)
3,597(61.6)(4,497)–
Fiscal 2020
¥4,885 million–%
Fiscal 2019-¥5,898 million–%
Profit per share
Ordinary profit
Operating profit
Profit per share
Return on equity
after full dilution
to total assets
to net sales

Fiscal 2020
225,121
Fiscal 2019
263,305(Note) Comprehensive income:

%

%

%

Fiscal 2020
24.70
–
0.6
Fiscal 2019
(191.42)–(4.2)(For reference) Share of profit or loss of entities accounted for using equity method:

Yen

Yen

(0.2)
1.3

(1.3)
1.1

Fiscal 2020
Fiscal 2019

¥1,315 million¥1,727 million(2) Consolidated Financial Position
Total assets
Million yen

Fiscal 2020
264,672
Fiscal 2019
254,659(For reference) Shareholders’ equity:
Fiscal 2020
(3) Consolidated Cash Flows
Cash flow fromoperating activities
Fiscal 2020
Fiscal 2019

Ratio of shareholders’equity to total assets

Net assets

Net assets per share

Million yen%

Yen108,385
103,800¥107,428 million

40.6
40.3
Fiscal 2019

4,611.46
4,372.66¥102,732 million

Cash flow frominvesting activities

Cash flow fromfinancing activities

Cash and cash equivalents
at end of period

Million yen

Million yen

Million yen

Million yen

5,730
16,206(8,931)(16,048)

3,668(6,461)

23,31923,075

2. Dividends
End of firstquarter
Fiscal 2019
Fiscal 2020
Fiscal 2021 (Forecasts)

End of second
quarter

Dividends per share
End of third
End of fiscal
quarteryear

Total dividends(annual)
Full fiscal year

Payout ratio(consolidated)

Dividends/
net assets(consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

–
–
–

40.00
0.00
0.00

–
–
–

0.00
20.00
40.00

40.00
20.00
40.00

942
466

–
81.0
31.1

0.9
0.4

3. Consolidated Financial Forecasts for Fiscal 2021 (April 1, 2021- March 31, 2022)(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

235,000

4.4

3,500

－

4,000

－

3,000

418.2

128.78

* 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 2020
24,077,510 sharesFiscal 2019(b) Number of treasury shares at the end of the period
Fiscal 2020
781,625 sharesFiscal 2019(c) Average number of shares issued during the period
Fiscal 2020
23,434,264 sharesFiscal 201924,077,510 shares
583,315 shares
23,494,830 shares(For reference) Non-Consolidated Results
Non-Consolidated Operating Results and Financial Position of the Fiscal 2020 (April 1, 2020 - March 31, 2021)(1) Non-Consolidated Operating Results(Percentage figures are changes from the previous fiscal year)
Net sales
Operating profit
Ordinary profit
ProfitFiscal 2020
Fiscal 2019

Million yen%

Million yen

124,313140,646(11.6)(6.7)(4,270)(1,241)%––%Million yen(1,672)369–(93.4)(402)(5,580)%––

Profit per shareafter full dilution

Profit per share
Yen

Fiscal 2020
Fiscal 2019

Million yen

Yen

–
–

(17.16)(237.50)(2) Non-Consolidated Financial Position
Total assets

Ratio of shareholders’equity to total assets

Net assets

Million yen

Fiscal 2020
202,575
Fiscal 2019
196,671(For reference) Shareholders’ equity:
Fiscal 2020

Net assets per share

Million yen%

Yen

71,613
68,464¥71,613 million

35.4
34.8
Fiscal 2019

3,073.60
2,913.68¥68,464 million

2. Non-Consolidated Financial Forecasts for Fiscal 2021 (April 1, 2021 - March 31, 2022)(Percentage figures are changes from the same period of the previous fiscal year)
Net sales
Operating profit
Ordinary profit
ProfitProfit per share
Million yen

Full year

161,000%

29.5

Million yen%

Million yen%

Million yen

%

Yen

200

－

1,700

－

1,200

－

51.50

* 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 .................................................................................... 4(3) Future Outlook ................................................................................................................................................................... 5(4) Basic Profit Allocation Policy, and Dividends for the Current and New Fiscal Year ........................................................ 5
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) .................................................................................................................................................... 17(Important events after the reporting period) ................................................................................................................... 17(Additional Information) ............................................................................................................................................... 17

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 11, 2021 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 suffered a severe downturn caused by restrictions on
economic and other activities imposed in countries around the world in response to the COVID-19 pandemic. Although there weresigns of recovery in the second half of the fiscal year, the United States, Europe, Southeast Asia, and other regions did not see arecovery to the level before the pandemic and continued to face difficult conditions. The Japanese economy saw improvements inexports and industrial production, mainly reflecting a restart of domestic and overseas economic activities and the effects ofvarious policies. The economy, however, did not achieve a full-scale recovery from the downturn due to COVID-19 and was
sluggish overall.
Under these circumstances, the Group took preventive measures against COVID-19 and focused on ensuring a stable supply tocustomers. The Group has established a company-wide management reform committee and has been implementing emergency
measures to bolster its earnings strength. They include modification of its production systems to promptly respond to a sharp
decrease in demand and reduction of fixed costs primarily through reductions in the amount of compensation and salaries, as well
as receiving employment adjustment subsidy for suspension of operations. In addition, the Group has implemented thedevelopment, sale, etc. of its original products in the Steel Business and worked to optimize its production system in the Automotive& Industrial Machinery Components Business, in accordance with the medium-term business plan, the Growth & Change 2021.
Also, efforts have also been made to strengthen the sustainable ESG management base. For example, the Company was selected as
one of the 2021 Certified Health & Productivity Management Outstanding Organizations as a result of initiatives to improve
employees' health and vitality.
The financial results for the fiscal year under review include consolidated net sales of ¥225,121 million (down 14.5% year onyear), an operating loss of ¥2,943 million (compared to operating profit of ¥2,851 million in the previous fiscal year), and an
ordinary loss of ¥575 million yen (compared to ordinary profit of ¥3,597 million in the previous fiscal year). This partly reflects asignificant decline in demand in the Automotive & Industrial Machinery Components Business and a surge in the price of steel
scrap in the second half, which occurred in the tough business environment. Profit attributable to owners of parent was ¥578 million(compared to loss attributable to owners of parent of ¥4,497 million in the previous fiscal year) due in part to the posting of a gainon sales of investment securities.
Performance by Segment(Steel Business)
In the steel industry, demand for steel materials of manufacturing companies fell substantially and the production of crude steel
dropped sharply. However, signs of recovery were seen in the second half of the fiscal year. The electric furnace industry continued
to face a challenging situation as the price of steel scrap, the main raw material of steel, rose sharply in the second half of the fiscal
year, reflecting a sharp increase in demand for steel in China, which had recovered from the COVID-19 pandemic.
Given these circumstances, the Group focused on exports and sales to the construction industry. As a result, the sales amountrose year on year and the Group's net sales increased to ¥75,657 million (up 3.1% year on year). Although the Group implemented
cost reductions through emergency measures to raise earnings, operating profit fell to ¥1,293 million (down 68.8% year on year)
because improvement in selling prices did not catch up with the steep rise in steel scrap prices.
(Automotive & Industrial Machinery Components Business)
In the automotive industry, production decreased worldwide primarily due to sluggish demand and the suspension of factory
operations in Japan and overseas in the first half of the fiscal year, although there were signs of recovery in the second half. The
construction machinery industry was on a recovery trend as economic activity resumed in China and other regions, and the
production of hydraulic shovels remained strong. On the other hand, mining machinery recovered towards the end of the fiscal year
but not sufficiently to make up for the poor performance in the first half of the fiscal year.
Given these conditions, the Group cut costs through emergency measures to raise earnings and considered structural reform plans
for achieving greater profitability of its businesses that will enable sustainable growth. However, due to a significant fall in sales
volume in the first half of the fiscal year, net sales decreased to ¥136,113 million (down 21.8% year on year), and the operating
loss stood at ¥221 million (compared to operating profit of ¥1,657 million in the previous fiscal year).

– 2 –(Power Business)
A challenging business environment continued in the power business due to suppression of coal fueled power generation backed
by global warming issues and intensifying price competition. Given these circumstances, the Group worked on the stable supply ofelectricity in line with its business plan. However, net sales stood at ¥7,583 million (down 18.7% year on year) and operating profit
fell to ¥165 million (down 80.6% year on year).
(Others)
The Group operated civil engineering and construction business, real estate leasing including Topy-rec Plaza (Minami-suna,
Koto-ku, Tokyo) and a sports club, OSSO, and manufactured and sold synthetic mica and crawler robots. Net sales came to ¥5,767
million (down 12.1% year on year) and the operating loss was ¥185 million (compared to operating profit of ¥893 million in theprevious fiscal year) due to a fall in sales from sports club operations and sales of mica in cosmetics, which were caused by COVID19.

– 3 –(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 ¥10,012 million from the end of the previous
consolidated fiscal year, to ¥264,672 million. This was mainly due to increases of ¥6,345 million and ¥4,482 million in notes andaccounts receivable - trade and investment securities, respectively.
Liabilities were ¥156,286 million, an increase of ¥5,428 million compared with the end of the previous consolidated fiscal year.
This was mainly due to an increase of ¥8,486 million in short-term borrowings and a decrease of ¥3,693 million in long-termborrowings.
Net assets were ¥108,385 million, an increase of ¥4,584 million from the end of the previous consolidated fiscal year. Major
factors included an increase in valuation difference on available-for-sale securities of ¥4,002 million. As a result, net assets per
share stood at ¥4,611.46 and the net worth ratio was 40.6%.
Cash flows
Cash and cash equivalents (hereinafter referred to as “funds”) at the end of the consolidated fiscal year under review stood at¥23,319 million. This was due to the allocation of increased funds from operating and financing activities mainly to the purchaseof property, plant and equipment in investment activities.

(Cash flows from operating activities)
Funds achieved by operating activities were ¥5,730 million, a decrease of ¥10,475 million from the previous consolidated fiscal
year. This mainly reflected depreciation of ¥12,515 million and an increase in trade receivables of ¥6,498 million.

(Cash flows from investment activities)
Funds used in investment activities stood at ¥8,931, a decrease of ¥7,117 million from the previous consolidated fiscal year. This
mainly reflected the purchase of property, plant and equipment of ¥11,495 million and gain on sales of investment securities of¥2,725 million.

(Cash flows from financing activities)
Funds achieved by financing activities were ¥3,668 million (¥6,461 million was used in the previous consolidated fiscal year).
This mainly reflected a net increase in borrowings of ¥4,833 million.

(Reference) Cash flow-related indicators

Equity ratio (%)
Equity ratio based on market
value (%)
The ratio of interest-bearing
debt to operating cash flow
(years)Interest coverage ratio (times)

Fiscal 2016

Fiscal 2017

Fiscal 2018

Fiscal 2019

Fiscal 2020

46.6

43.9

39.2

40.3

40.6

31.1

29.3

18.3

12.7

12.3

5.5

5.7

6.8

4.7

14.1

12.0

17.3

16.0

25.9

11.1

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.

– 4 –(3) Future Outlook
While the global economy is expected to begin to improve significantly from the downturn in economic activities, the Group's
operating environment is likely to remain uncertain due to concerns including the impact of the U.S.-China conflict and thesemiconductor shortage on automotive production and the globally tight supply of marine container transportation services, inaddition to restrictions and voluntary restraints on social and economic activities reflecting the resurgence of COVID-19 infections.
In this environment, the Group will work to form selling prices that are appropriate for costs, including raw material andtransportation costs. The Group will also tackle structural reforms through further cost improvement, optimization of the Group's
production systems, and other initiatives, enhancement of strategic products, and other measures, aiming to increase earning power
and make other achievements in accordance with the medium-term business plan, the Growth & Change 2021.
The consolidated forecasts for fiscal 2021 include consolidated net sales of ¥235,000 million, operating profit of ¥3,500 million,
ordinary profit of ¥4,000 million, and profit attributable to owners of parent of ¥3,000 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 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.
The Company plans to pay ¥20 per share as the year-end dividend for the fiscal year under review. Because the Company was
unable to pay the interim dividend, the annual dividend for the fiscal year under review will be ¥20 per share.
The Company plans to pay the annual dividend of ¥40 for the next fiscal 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.

– 5 –3. Consolidated Financial Statements and Important Notes(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2020
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
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, 2021

23,811
44,76420,7085,529
14,0186,271(28)115,074

24,477
51,10920,926
4,902
14,574
6,427(58)
122,360

92,392(62,551)
29,841
209,235(162,259)
46,976
15,256
5,141(3,625)
1,515
4,778
43,460(41,383)
2,076
100,445

93,281(64,517)
28,763
213,046(168,097)
44,94915,2792,584(1,461)
1,122
6,051
44,073(42,148)
1,924
98,091

4,637
4,637

3,890
3,890

24,774
479
1,360
295
7,642
(50)
34,500139,584
254,659

29,257
206
1,634
386
8,892
(47)
40,329142,311
264,672(Millions of yen)
As of March 31, 2020
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of bonds payable
Lease obligations
Income taxes payable
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Lease obligations
Deferred tax liabilities
Provision for corporate officers' retirement
benefits
Provision for share awards for directors (andother officers)
Provision for retirement benefits for directors(and other 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, 2021

24,562
12,687
15,495
5,500
433
502
14,872
74,05327,00913,21523,982
5,300
232
923
13,53984,201

27,30028,486572
4,649

27,00024,793
367
5,736

175

211

39

36

46

60

290
12,285355
2,602
76,805150,858

398
10,782358
2,339
72,084
156,286

20,98318,60661,444(1,711)

20,98318,60662,023(1,943)99,323

99,669

5,440

9,443

(5)
(1,401)
(625)
3,409
1,068
103,800
254,65912(2,266)
568
7,758
957
108,385
264,672

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
Fiscal year ended
March 31, 2020
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodSubsidies for employment adjustment
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Insurance expenses
Other
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current assets
Loss on valuation of investment securities
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent

Fiscal year ended
March 31, 2021

263,305
227,245
36,05933,2082,851

225,121
198,318
26,80329,746(2,943)

93
695

135
659

1,727

1,315

－
448
2,964

562
739
3,413

609
422
116
1,070
2,218
3,597

520
－
117
408
1,045
(575)

453
17
471

57
1,594
1,651

50
256
1,860
159
2,327
1,741
1,475
4,706
6,181
(4,440)

4
215
－
－
220
856
1,396
(1,127)
268
587
8
578

56
(4,497)– 8 –(Consolidated Statements of Comprehensive Income)(Millions of yen)
Fiscal year ended
March 31, 2020
Profit (loss)
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, 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 noncontrolling interests– 9 –Fiscal year ended
March 31, 2021

(4,440)

587

(785)
0
(227)
(261)

3,972
17
(986)
1,196

(183)

97

(1,457)(5,898)

4,297
4,885

(5,978)

4,928

80

(42)

(3) Consolidated Statements of Changes in Net Assets
Previous consolidated fiscal year (April 1, 2019 - March 31, 2020)(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

20,98318,606

Retained earnings

Treasury shares

Total shareholders'equity68,532(1,708)106,413

Changes during period
Dividends of surplus(2,590)(2,590)

Profit (loss) attributable toowners of parent(4,497)(4,497)Purchase of treasury shares
Disposal of treasury shares

(0)

(3)

(3)

0

0

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period－(0)(7,088)(2)(7,090)20,98318,60661,444(1,711)

99,323

Accumulated other comprehensive income
Valuationdifferenceonavailablefor-salesecurities
Balance at beginning of period

6,284

Deferred
gains orlosses onhedges(5)

Foreigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated othercomprehensive income

Noncontrollinginterests

Total net
assets(1,023)

(365)

4,890

1,057

112,362

Changes during period
Dividends of surplus(2,590)

Profit (loss) attributable toowners of parent(4,497)Purchase of treasury shares(3)

Disposal of treasury shares0

Net changes in items otherthan shareholders' equity

(843)

0

(377)

(260)

(1,481)10(1,470)Total changes during period

(843)

0

(377)

(260)

(1,481)

10(8,561)

Balance at end of period

5,440

(5)

(1,401)

(625)

3,409

1,068

103,800– 10 –

Consolidated fiscal year under review (April 1, 2020 - March 31, 2021)(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

20,98318,606

Retained earnings

Treasury shares

Total shareholders'equity61,444(1,711)

99,323

Changes during period
Dividends of surplus
Profit (loss) attributable toowners of parent

578

578

Purchase of treasury shares

(240)

(240)

Disposal of treasury shares

88

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

－

－

578

(232)

346

20,98318,60662,023(1,943)

99,669

Accumulated other comprehensive income
Valuationdifferenceonavailablefor-salesecurities
Balance at beginning of period

5,440

Deferred
gains orlosses onhedges(5)

Foreigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated othercomprehensive income

Noncontrollinginterests

Total net
assets(1,401)

(625)

3,409

1,068

103,800

Changes during period
Dividends of surplus
Profit (loss) attributable toowners of parent

578

Purchase of treasury shares(240)

Disposal of treasury shares

8

Net changes in items otherthan shareholders' equity

4,002

17

(865)

1,194

4,349

(111)

4,238

Total changes during period

4,002

17

(865)

1,194

4,349

(111)

4,584

Balance at end of period

9,443

12

(2,266)

568

7,758

957

108,385– 11 –

(4) Consolidated Cash Flow Statements(Millions of yen)
Fiscal year ended
March 31, 2020
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
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
Loss (gain) on valuation of short-term and longterm investment securities
Gain(loss)on sales and disposal of property,plantand equipment,net
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net
SubtotalInterest and dividends received
Interest paid
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, 2021

1,741
12,332124856
12,515
124

(44)

26

13

36

(81)

107

(361)
(788)
609

(53)
(795)
520

(1,727)(1,315)(16)(1,594)

1,860

－

(146)

162

14,938
4,499(14,795)
1,633
19,790825(626)(3,784)(6,498)
(482)
3,051
(695)
5,965
904
(514)
(625)

16,206

5,730

(627)
(16,334)
1,208
(33)
82
(29)
26
(330)
(11)
(16,048)(413)(11,495)
117
(15)
2,725
(14)
297
(137)
4
(8,931)

(Millions of yen)
Fiscal year ended
March 31, 2020
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 obligations
Purchase of treasury shares
Proceeds from disposal 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 –

Fiscal year ended
March 31, 2021

(6,543)2,800(4,128)9,929(5,000)
0
(858)
(3)
0
(2,587)(69)(6,461)

7,173
4,585
(6,925)
4,964(5,500)
180
(493)
(240)
－
(7)
(68)

(181)

(223)

(6,485)29,56023,075

243
23,07523,3193,668

(5) Notes Regarding the Consolidated Financial Statements(Note Related to Going-Concern Assumption)
None(Segment information, etc.)
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 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 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.

– 14 –

3. Information regarding amounts of net sales, profits or losses, assets and other items by reportable segment
Previous consolidated fiscal year (from April 1, 2019 to March 31, 2020)(Million yen)
Reportable segment

Steel

Automotive &Industrial
MachineryComponents

Power73,404

174,015

9,326

16,773－90,177

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

Others(Note) 1

Total

256,746

6,558

263,305－

263,305－

16,773－

16,773(16,773)－

174,015

9,326

273,519

6,558

280,078(16,773)

263,305

4,142

1,657

852

6,652

893

7,545

(4,693)2,851

87,510123,854

5,148

216,513

17,304

233,818

20,841

254,659

Depreciation

4,933

5,955

450

11,339385

11,725607

12,332

Increase inproperty, plantand equipment
and intangible
assets

4,987

7,844

47

12,87981

12,961436

13,397Total

Net sales
Net sales tooutsidecustomers
Internal sales
or transfer
betweensegments
Total
Profits ofsegment
Assets ofsegment
Other items(Notes) 1. The category “Others” includes the business segments not included in the reportable segments such assynthetic mica, crawler robots, indoor and outdoor sign systems, civil engineering and construction, theleasing of real estate and the operation 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 ¥4,693 million are common corporate expenses, etc. notallocated to the respective reportable segments. The common corporate expenses are mainly the expenses
related to the administrative divisions of the Company that are not attributable to the reportable segments.
(2) Assets of segment in an amount of ¥20,841 million include the corporate assets of ¥24,492 million notallocated to the respective reportable segments and the elimination of intra-company transactions between
segments in an amount of -¥3,651 million. The corporate assets are mainly the assets related to theadministrative divisions of the Company that are not attributable to the reportable segments.
(3) Of the Other items, depreciation of ¥607 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 ¥436 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.

– 15 –

Consolidated fiscal year under review (from April 1, 2020 to March 31, 2021)(Million yen)
Reportable segment

Steel

Automotive &Industrial
MachineryComponents

Power75,657

136,113

7,583

14,384－90,041

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

Others(Note) 1

Total

219,354

5,767

225,121－225,121－

14,384－

14,384(14,384)－

136,113

7,583

233,738

5,767

239,505(14,384)

225,121

1,293

(221)

165

1,236

(185)

1,051

(3,994)(2,943)

92,843

127,905

5,155

225,904

15,490241,394

23,277

264,672

Depreciation

4,883

5,999

516

11,400417

11,817698

12,515

Increase inproperty, plantand equipment
and intangible
assets

3,334

5,685

568

9,587

390

9,978

393

10,371Total

Net sales
Net sales tooutsidecustomers
Internal sales
or transfer
betweensegments
Total
Profits (losses) ofsegment
Assets ofsegment
Other items(Notes) 1. The category “Others” includes the business segments not included in the reportable segments such assynthetic mica, crawler robots, indoor and outdoor sign systems, civil engineering and construction, theleasing of real estate and the operation 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 ¥3,994 million are common corporate expenses, etc. notallocated to the respective reportable segments. The common corporate expenses are mainly the expenses
related to the administrative divisions of the Company that are not attributable to the reportable segments.
(2) Assets of segment in an amount of ¥23,277 million include the corporate assets of ¥27,624 million notallocated to the respective reportable segments and the elimination of intra-company transactions between
segments in an amount of -¥4,346 million. The corporate assets are mainly the assets related to theadministrative divisions of the Company that are not attributable to the reportable segments.
(3) Of the Other items, depreciation of ¥698 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 ¥393 million is mainly capital spending of the administrative divisions of the Company.
3. Profit (loss) of segment is adjusted with operating profit recorded under the consolidated financial statements.

– 16 –

(Information per share)Previous consolidated fiscal year (from Consolidated fiscal year under review
April 1, 2019 to March 31, 2020)(from April 1, 2020 to March 31, 2021)
Net assets per share

4,372.66 yen

4,611.46 yen

Profit (loss) per share(191.42 yen)

24.70 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 stock compensation
plan for directors, etc. are included in the treasury shares that are deducted from the total number of shares issued andoutstanding at the end of the fiscal year (52 thousand shares for the previous consolidated fiscal year and 48 thousand sharesfor 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 thatare deducted in the calculation of the average number of shares during the fiscal year (52 thousand shares for the previous
consolidated fiscal year and 50 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 (from Consolidated fiscal year under review
April 1, 2019 to March 31, 2020)(from April 1, 2020 to March 31, 2021)
Profit (loss) attributable to owners of parent(million yen)Amount not attributable to common shareholders(million yen)

(4,497)578－－(4,497)578

23,49423,434

Profit (loss) attributable to owners of parent inrelation to common shares (million yen)
Average number of shares during the fiscal year
(thousand shares)(Important events after the reporting period)
None(Additional information)(Effects of COVID-19)
The effect of COVID-19 to the economy and corporate activities is extensive, and it is challenging to predict the future spreador the time of containment. Based on external information available at the end of this consolidated fiscal year, the Group is
performing accounting estimations such as the collectability of deferred tax assets under the assumption that the effects of COVID19 will continue for a period of time from the next consolidated fiscal year onward, although a gradual recovery is expected.

– 17 –