Consolidated Financial Results for the 2nd Quarter of Fiscal Year Ending March 31, 2023
(J-GAAP)
November 7, 2022
Company name: T.RAD Co., Ltd.
Listing: Tokyo Stock Exchange, Prime Market
Code No.:
7236
URL: http://www.trad.co.jp
Representative: Tomio Miyazaki, President & CEO & COO
Contact:
Norio Kanai, Managing Director & CFO
Tel:+81-3-3373-1101
Scheduled date of filing of 2nd quarter securities report:
November 8, 2022
Scheduled date of start of dividend payments:
November 30, 2022
Supplemental materials prepared for consolidated financial results: None
Briefing on consolidated financial results: Yes(Amounts less than one million yen have been truncated)

1. Consolidated Financial Performance for the 2nd Quarter of Fiscal Year Ending March 31, 2023
(April 1, 2022 to September 30, 2022)(1) Consolidated operating performance(Percentage figures indicate year-on-year change)
Net sales
Millions of yen

Operating income% Millions of yen

Six months ended
74,015
12.9
September30, 2022
Six months ended
65,57434.5
September30, 2021
Note: Comprehensive income
Six months ended September 30, 2022: ¥Six months ended September 30, 2021: ¥Net income per share
Six months ended
September30, 2022
Six months ended
September30, 2021

Ordinary income% Millions of yen

822

-75.9

1,929

-44.6

306

-83.6

3,417

―

3,483

―

1,864

―

4,800 million (40.6%)
3,414 million (―%)
Diluted net income per share

Yen

Yen

46.88

―

259.32―(2) Consolidated financial position
Total assets

Profit attributable toowners of parent% Millions of yen%

Net assets

Millions of yen

Equity ratio

Net assets per share

Millions of yen%

Yen

50,56247.1

7,385.20

46,73247.5

6,810.22

Year-end
Yen

Total

Six months ended
102,257
September30, 2022
Fiscal year ended
93,756
March 31, 2022
Reference: Shareholders’ equity
As of September 30, 2022: ¥48,173 million
As of March 31, 2022 : ¥44,504 million

2. Dividends
1Q

2Q
Yen

Dividends per Share
3Q
Yen
Yen

Fiscal year ended
40.00
―
―
March 31, 2022
Fiscal year ending
80.00―
March 31, 2023
Fiscal year ending
March 31, 2023―
(Forecast)
Note: Revisions to the forecast of dividends since the latest official announcement: No

1

Yen

120.00160.0080.00

160.003. Forecast of Consolidated Financial Performance for the Fiscal Year Ending March 31, 2023
(April 1, 2022 to March 31, 2023)(Percentage figures indicate changes from the same period of the previous year)

Net sales
Millions ofyen%Operating income

Ordinary income

Millions ofyenMillions of
yen

%

%

Profit attributable toowners of parent
Millions ofyenNetincome per
share

%

Fiscal year ending
158,400
18.6
4,200 -16.7
4,600
-23.3
1,500
-58.3
March 31, 2023
Note: Revisions to the forecast of consolidated financial performance since the latest official announcement: No

Yen
229.54

4. Other(1) Changes in significant subsidiaries during the current quarter(changes in specific subsidiaries resulting in changes in the scope of consolidation): Yes(Note)Excluded:2, TRM LLC, TRM Corporation B.V.
(2) Adoption of specific accounting policies for quarterly consolidated financial statements: None
(3) Changes in accounting principles, estimation procedures or presentation methods
1) Changes associated with revision of accounting standards: None
2) Changes other than 1): None
3) Changes accounting estimation procedures: None
4) Changes in presentation methods: None
(4) Number of shares issued and outstanding (common stock)1) Number of shares issued and outstanding at end of period (including treasury stock)
As of September 30, 2022: 6,712,411 shares
As of March 31, 2022: 6,712,411 shares
2) Number of shares of treasury stock at end of period
As of September 30, 2022: 189,372 shares
As of March 31, 2022: 177,519 shares
3) Average number of shares outstanding during the period
Six months ended September 30, 2022: 6,531,458 shares
Six months ended September 30, 2021: 7,190,968 shares* The consolidated financial results presented herein are not subject to the audit procedures by certified public
accountant or audit firm.
* Explanations for proper use of forecasts and other specific affairs
The forward-looking statement such as forecast of financial performance etc. described in this report based on
information currently available and certain assumptions judged to be reasonable. Actual performance may
differ significantly from these projections due to various factors.

2

Table of Contents
1. Qualitative Information for the Second Quarter of Fiscal Year Ending March 31, 2023 ·························· 4(1) Consolidated financial performance ················································································ 4(2) Consolidated financial position ····················································································· 5(3) Future projections including forecasts of consolidated financial performance·········································· 5
2. Quarterly Consolidated Financial Statements and main notes ························································ 6(1) Quarterly consolidated balance sheets ·············································································· 6(2) Quarterly consolidated statements of income andquarterly consolidated statement of comprehensive income ········································· 8(Quarterly consolidated statements of income) ·································································· 8(Quarterly consolidated statement of comprehensive income) ··············································· 10(3) Quarterly consolidated statements of cash flows ································································ 11(4) Notes to quarterly consolidated financial statements ··························································· 13(Going concern assumptions) ······················································································ 13(Notes in the event of significant changes in shareholders’ equity) ··········································· 13(Additional information) ··························································································· 13(Segment information) ····························································································· 14
3. Supplementary information
Sales states (consolidated) ························································································· 16

3

1.

Qualitative Information for the Second Quarter of Fiscal Year Ending March 31, 2023

(1) Consolidated financial performance
The economic environment showed signs of picking up during the second quarter of the current consolidated cumulative
period. However, there are concerns that the difficult situation will continue due to the prolonged invasion of Ukraine,
deteriorating Chinese demand associated with the Shanghai lockdown, a shortage of semiconductors, and soaring raw
material prices.
Under the circumstances, the net sales of the T.RAD Group (on a foreign currency basis) increased from the same periodof the previous year except China. Operating income decreased from the same period of the previous year except Japan due tosoaring costs of materials and parts etc. In addition, the deconsolidation of Russian subsidiaries resulted in extraordinary lossof 401 million yen. The profit attributable to owners of parent also decreased year-on-year.
As a result, net sales during the consolidated cumulative second quarter increased by 8,441 million yen from the previous
fiscal year, amounting to 74,015 million yen (up 12.9% year on year), operating income decreased by 2,595 million yen,amounting to 822 million yen (down 75.9% year on year), ordinary income decreased by 1,553 million yen, amounting to
1,929 million yen (down 44.6% year on year) and profit attributable to owners of parent decreased by 1,558 million yen,amounting to 306 million yen (down 83.6% year on year).
The segment results are as follows.
The book-closing date for the consolidated subsidiaries for the first six months of the fiscal year under review is June 30.
In preparing the consolidated financial statements, the financial statements as of, and for the six-month period ended on thisdate were used. With respect to material transactions conducted during the period between this date and the book-closing
date for consolidated accounting, we have made adjustments as necessary for consolidated accounting. The segments
relevant to such adjustments include the United States, Europe, Asia and China.
Domestic subsidiaries have the same settlement date that coincides with the last day of the consolidated fiscal year. The
corresponding segment is Other.
Net Sales
Operating Income (Loss)
Six months
Six months
ended
ended
September 30, September 30,
2021
2022

Japan
United States

EuropeAsia
China
Others(including
eliminations)

Increase/
Decrease

Percentage change(on a foreign
currency basis)*Six months
ended
September 30,
2021

Six months
ended
September 30,
2022

Increase/
Decrease

Percentage change(on a foreign
currency basis)*(%)(Millions of yen)

(Millions of yen)

(Millions of yen)(%)

(Millions of yen)

(Millions of yen)

(Millions of yen)

28,534
14,7502,352
7,497
12,32831,705
19,453
2,964
9,080
10,713

3,170
4,702
612
1,583
-1,614

11.1
6.7
1.8
5.3
-27.6

138
(12)
27
1,281
1,864

542
(1,625)
(229)
1,238
870

403
-1,612
-257
-43
-993

291.4
－
－
-16.6
-60.8

112

99

-12

-11.6

117

25

-92

-78.4

Total
65,57474,015
8,441
1.2
3,417
822
-2,595-79.4*The percentage changes (on a foreign currency basis) in the chart are the percentage changes after correcting for differences
arising from fluctuations in the foreign exchange rates applicable to overseas net sales.
(i) Japan
The net sales of products for automobile industry were affected by a shortage of semiconductors. However, demand was
firm, and the net sales of products for construction industrial machines were generally favorable, both increasing from thesame period of the previous year. As a result, the net sales in the Japan segment increased by 3,170 million yen, resulting in
31,705 million yen.
Due to the soaring costs of materials, parts, and electricity, the operating income decreased. However, operating income
increased by 403 million yen from the same period of the previous year to 542 million yen, mainly due to increased sales.
(ii) United States
Net sales of products for automotive industry increased from the same period of the previous year due to thecommencement of mass production of models for which orders were newly received. As a result, the net sales in the UnitedStates segment increased by 4,702 million yen from the same period of the previous year, resulting in 19,453 million yen. On
a foreign currency basis, it increased by 6.7%.
The operating income decreased by 1,612 million yen year-on-year, resulting in operating loss of 1,625 million yen due tothe soaring costs of materials and parts and an increase in labor and distribution expenses.
4

(iii) Europe
The net sales of products for automobile industry increased year-on-year mainly due to an increase in orders for heavy-duty
trucks in the Czech Republic. The net sales in this segment increased by 612 million yen from the same period of the previous
year, to 2,964 million yen. On a foreign currency basis, it increased by 1.8%.
Operating income decreased by 257 million yen year-on-year, resulting in operating loss of 229 million yen due to soaring
costs of materials and parts.
<Withdrawal from Russian Business>
On April 5, 2022, we announced our intention to withdraw from the Russian market. In this connection, in September 2022,
the procedure to make the Company’s non-voting share conversion was completed. Therefore, we have excluded our Russian
subsidiary TRM LLC and Dutch holding company TRM Corporation B.V. from the scope of consolidation as of the end of
the second quarter of the current consolidated cumulative period. The second quarter income statement for both subsidiaries(for January 2022 through June 2022) is included in the consolidated income statement for the six months ending September
30, 2022. However, the income statements of those companies from the third quarter onward (after July 2022) will not be
included in the current fiscal year’s income statement. Furthermore, the balance sheets as of the end of June 2022 for bothsubsidiaries are not included in our balance sheet as of September 30, 2022.
(iv) Asia
The net sales of products for automobile industry decreased due to a shortage of semiconductors in Vietnam. However, thesales in Thailand increased from the same period of the previous year due to the start of the mass production of newly ordered
models and the recovery of orders in Indonesia. As a result, the net sales in the Asia segment increased by 1,583 million yen
from the same period of the previous year, resulting in 9,080 million yen. On a foreign currency basis, it increased by 5.3%.
Operating income decreased by 43 million yen from the same period of the previous year due to soaring costs of materials
and parts etc., resulting in 1,283 million yen. On a foreign currency basis, it decreased by 16.6%.
(v) China
The net sales of products for automobile industry and construction industrial machines decreased from the same period of
the previous year, mainly due to the Shanghai lockdown and a shortage of semiconductors. As a result, the net sales in thissegment decreased by 1,614 million yen from the same period of the previous year, to 10,713 million yen. On a foreign
currency basis, it decreased by 27.6%.
The operating income decreased by 993 million yen from the same period of the previous year due to soaring costs ofmaterials and parts etc., resulting in 870 million yen. On a foreign currency basis, it decreased by 60.8%.
(2) Consolidated financial position
1) Assets, liabilities and net assets
Total assets at the end of current second quarter of the fiscal year under review resulted in 102,257 million yen (up 8,500
million yen from the end of the previous fiscal year) due to the increase of cash and deposits, inventories and tangible fixed
assets etc.
Total liabilities resulted in 51,694 million yen (up 4,670 million yen) due to the increase of accounts payable-trade andloans payable etc.
Net assets resulted in 50,562 million yen (up 3,830 million yen) due to the increase of foreign currency translation
adjustment etc.
2) Cash flows
Cash and cash equivalents at the end of the current second quarter of the fiscal year under review totaled 14,262 million
yen, decrease of 1,826 million yen from the end of the previous fiscal year.
The factors for increase or decrease of each cash flow in the current second quarter consolidated accumulative period are
as follows.
Net cash provided by operating activities was 4,274 million yen, a decrease of 851 million yen year on year due to thedecrease of profit before income taxes and increase of income taxes paid etc.
Net cash used in investing activities was 3,759 million yen, an increase of 684 million yen year on year due to the increaseof capital investment etc.
As a result, the free cash flow, which is the sum of the net cash provided by operating activities and used in investing
activities, amounted to 514 million yen (a decrease of 1,535 million yen year-on-year).
Furthermore, net cash used in financing activities was 688 million yen, an increase of 311 million yen year on year due tothe decrease of purchase of treasury stock etc.
(3) Future projections including forecasts of consolidated financial performance
We did not revise the forecast of consolidated financial performance released on May 16, 2022, as the financial results for the
first six months of the fiscal year under review were within the expected range.

5

2. Quarterly Consolidated Financial Statements and main notes(1) Quarterly consolidated balance sheets(Millions of yen)
FY2022_2Q

FY2021
As of March 31, 2022

As of September 30,
2022

AmountAmount(Assets)
Current assets
Cash and deposits

13,264

14,299Notes receivable-trade

2,004

670

Electronically recorded monetary claims-operating

3,012

2,341

Accounts receivable-trade23,832

26,234

Short-term investment securities

489

489

Merchandise and finished goods

3,805

4,228

Work in process

902

722

Raw materials and supplies

8,152

10,413

Others

2,542

3,054

Allowance for doubtful accounts

(172)

(205)

Total current assets

57,83562,249Building and structures, net

5,715

6,913

Machinery, equipment and vehicles, net

15,077

17,053

Land

2,384

2,466

Lease assets, net

364

1,379

Construction in progress

4,904

3,429

Noncurrent assets
Tangible fixed assets

Other tangible fixed assets, net

1,754

2,035

Total tangible fixed assets

30,20033,277

Others

1,613

1,916

Total intangible assets

1,613

1,916

Investment securities

2,392

2,936

Net defined benefit asset

1,020

1,006

Deferred tax assets

149

215

Others549

660

Intangible assets

Investments and other assets

Allowance for doubtful accounts

(5)

(5)

Total investments and other assets

4,106

4,813

35,92140,00793,756102,257

Total noncurrent assets
Total assets

6

(Millions of yen)
FY2022_2Q

FY2021
As of March 31, 2022

As of September 30,
2022

AmountAmount(Liabilities)
Current liabilities
Notes and accounts payable-trade

13,994

16,260Electronically recorded obligations – operating

4,249

4,160

Short-term loans payable

10,39011,310

Lease obligations

495

571

Income taxes payable

948

717

Accrued expenses

3,081

3,474

Provision for bonuses

1,421

1,492

Provision for directors’ bonuses

72

27

Provision for product warranties

272

200

Provision for loss on order received

187

206

Electronically recorded obligations - non-operating

474

467

Others

1,788

961

Total current liabilities

37,37739,850Long-term loans payable

6,720

7,658

Lease obligations

1,576

2,616

Deferred tax liabilities

867

1,010

Net defined benefit liability

287

332

Provision for share awards－

20

Asset retirement obligations

92

92

Others102112

Noncurrent liabilities

Total noncurrent liabilities

9,646

11,84347,024

51,694

Capital stock

8,570

8,570

Capital surplus

7,352

7,353

Retained earnings

27,004

26,526

Treasury stock

(421)

(451)

Total shareholders’ equity

42,50541,998Valuation difference on available-for-sale securities－

10

Foreign currency translation adjustment

948

5,127

Remeasurements of defined benefit plans

1,049

1,037

Total accumulated other comprehensive income

1,998

6,175

Non-controlling interests

2,228

2,389

Total net assets

46,73250,562

Total liabilities and net assets

93,756102,257

Total liabilities(Net assets)
Shareholders’ equity

Accumulated other comprehensive income7(2) Quarterly consolidated statements of income and quarterly consolidated statement of comprehensive income(Quarterly consolidated statements of income)(Millions of yen)Six months ended
September 30, 2022

Six months ended
September 30, 2021
(Apr. 1, 2021–September 30, 2021)(Apr. 1, 2022–September 30, 2022)

AmountAmountNet sales

65,57474,015

Cost of sales

57,181

67,936Gross profit

8,392

6,079

Packing and delivery expenses

874

803

Salaries and allowances

900

998

Provision for bonuses

467

411

Provision for directors’ bonuses

30

27

Retirement benefit expenses

37

35

Welfare expenses

565

747

Provision for product warranties

106

272

Research and development expenses

620

585

Selling, general and administrative expenses－

20

Others

1,371

1,355

Total selling, general and administrative expenses

4,975

5,257

Operating income (loss)

3,417

822

Interest income

71

79

Dividends income25Equity in earnings of affiliates

13

269

Foreign exchange gains－

765

Others119

120

Total non-operating income

205

1,239

Interest expenses

114

115

Foreign exchange losses

16－

Others816

Total non-operating expenses

139

132

Ordinary income (loss)

3,483

1,929

Provision for share awards

Non-operating income

Non-operating expenses

8

(Millions of yen)Six months ended
September 30, 2022

Six months ended
September 30, 2021
(Apr. 1, 2021–September 30, 2021)(Apr. 1, 2022–September 30, 2022)

AmountAmountExtraordinary income
Gain on sales of noncurrent assets

514Gain on sales of golf memberships

11－

Total extraordinary income

16

14

Loss on sales of noncurrent assets

1

15

Loss on retirement of noncurrent assets

44

31

Loss on reversal of foreign currency translation adjustment－

401

Total extraordinary loss

46

448

Income (loss) before income taxes

3,453

1,495

Income taxes-current

1,033

1,210

Income taxes-deferred

372

76

Total income taxes

1,406

1,286

Profit (loss)

2,046

208

Profit (loss) attributable to non-controlling interests

181

(97)

Profit (loss) attributable to owners of parent

1,864

306

Extraordinary loss

9

(Quarterly consolidated statement of comprehensive income)(Millions of yen）
Six months ended
September 30, 2022

Six months ended
September 30, 2021
(Apr. 1, 2021–September 30, 2021)(Apr. 1, 2022–September 30, 2022)

AmountAmount
2,046

208

－

10

1,367

4,318

(7)

(12)

8

274

Total other comprehensive income

1,368

4,591

Comprehensive income

3,414

4,800

Comprehensive income attributable to owners of the parent

3,069

4,483

Comprehensive income attributable to non-controlling interests

345

316

Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of associates accounted for using equity
method(Breakdown)

10(3) Quarterly consolidated statements of cash flows(Millions of yen)Six months ended
September 30, 2022

Six months ended
September 30, 2021
(Apr. 1, 2021–September 30, 2021)(Apr. 1, 2022–September 30, 2022)

AmountAmountNet cash provided by (used in) operating activities
Profit (loss) before income taxes

3,453

1,495

Depreciation and amortization

2,788

3,018

Retirement benefit expenses

(9)

(11)

Increase(decrease) in net defined benefit liability

18

19

Increase (decrease) in allowance for doubtful accounts

4

7

Increase (decrease) in provision for bonuses

545

66

Increase (decrease) in provision for directors' bonuses

30

(44)

Increase (decrease) in provision for product warranties

(180)

(106)

Loss on retirement of noncurrent assets

44

31

Loss(gain) on sales of tangible fixed assets(3)1Interest and dividends income

(73)

(84)

Interest expenses

114

115

Foreign exchange losses (gains)

(5)

(139)

Equity in (earnings) losses of affiliates

(13)

(269)

Decrease(increase) in notes and accounts receivable-trade

363

1,601

(1,080)(1,525)

Increase(decrease) in notes and accounts payable-trade

334

835

Loss on reversal of foreign currency translation adjustment－

401

Decrease(increase) in other current assets

(170)

(455)

Increase (decrease) in other current liabilities

Decrease(increase) in inventories

(311)

737

Other, net

5660

Subtotal

5,905

5,755

Interest and dividends income received

166

84

Interest expenses paid

(97)

(108)

Income taxes paid

(849)

(1,457)

Net cash provided by (used in) operating activities

5,125

4,274

11

(Millions of yen)Six months ended
September 30, 2022

Six months ended
September 30, 2021
(Apr. 1, 2021–September 30, 2021)(Apr. 1, 2022–September 30, 2022)

AmountAmountNet cash provided by (used in) investing activities(2,749)(3,327)

12

103

(277)

(390)

7

－

(432)

(776)

Proceeds from withdrawal of time deposits

462

649

Payments for asset retirement obligations

(100)

－

1

(17)

(3,074)(3,759)

468

(561)

Purchase of tangible assets
Proceeds from sales of tangible fixed assets
Purchase of intangible assets
Proceeds from sales of investment securities
Payments into time deposit

OthersNet cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable

3,520

3,140

Repayment of long-term loans payable(3,980)(2,031)

Purchase of treasury stock

(687)

(115)

－

(784)

Cash dividends paid to non-controlling shareholders

(108)

(106)

Others

(211)

(229)

Net cash provided by (used in) financing activities

Cash dividends paid

(999)

(688)

Effect of exchange rate change on cash and cash equivalents

422

1,211

Net increase (decrease) in cash and cash equivalents

1,473

1,038

Cash and cash equivalents at beginning of period

14,614

13,404－(180)

16,08814,262

Decrease in cash and cash equivalents resulting from exclusion of subsidiaries
from consolidation
Cash and cash equivalents at end of period12(4) Notes to quarterly consolidated financial statements(Going concern assumptions)Not applicable(Notes in the event of significant changes in shareholders’ equity)
Based on the resolution of the Board of Directors’ meeting held on August 8, 2022, we purchased 25,100 sharesof treasury stock on August 9, 2022. Furthermore, based on the resolution of the Board of Directors’ meeting heldon July 19, 2022, we disposed of 13,599 shares of treasury stock on August 19, 2022, as restricted stockcompensation for Directors and Managing Executive Officers.
As a result, treasury stock increased by 30 million yen and capital surplus (gain on the disposal of treasury stock)
increased by 1 million yen in the second quarter of the current consolidated cumulative period. As of the end of
the second quarter of the current consolidated cumulative period, the treasury stock amounted to 451 million yen,and the capital surplus amounted to 7,353 million yen.
(Additional information)(About the accounting estimate associated with the spread of novel coronavirus infections)
There has been no notable change in the assumptions regarding the impact of the COVID 19 pandemic on theGroup’s business as described in the Additional Information section of the Annual Securities Report for theprevious fiscal year.
(Transactions in which the Company’s shares are issued to employees through a trust)(1) Outline of transaction
At a meeting of the Board of Directors held on May 16, 2022, the Company resolved details of a new incentive
plan called the Employee Stock Ownership Plan (J-ESOP, hereinafter referred to as the “Plan”) for employees.
The Plan is a system to provide the Company’s shares to its employees who satisfy certain requirements under
the Share Benefit Regulations to be established by the Company in advance.
The Company will grant points to its employees based on their position, performance, and other factors. The
Company’s shares equivalent to the points granted will be paid to the employees when they acquire the right ofentitlement under certain conditions stipulated in the Share Benefit Regulations. The shares to be provided to
employees shall be acquired following the amount set up in advance, including the future portion, and shall be
segregated and managed as trust assets.
The introduction of the Plan will enable employees to share the economic benefits with shareholders byreflecting the benefits in the Company’s stock price based on the Company’s performance. As “working
shareholders,” the Company will increase its employees’ sense of ownership and participation in management
even more than before. At the same time, the Plan is intended to share the Company’s vision and plans andcontribute to the Company’s sustainable growth through a high level of voluntary commitment and challenge.
(2) Shares of the Company remaining in the trust
The Company’s shares remaining in the trust are recorded as treasury stock under net assets at their book value.
The book value of the Company’s shares at the end of the second quarter of the current consolidated cumulative
period is 49 million yen, and the number of shares is 22,100.
(Transition from a consolidated tax payment system to a group totalization system)
Since the first quarter of the current consolidated cumulative period, the Company and its consolidated domestic
subsidiaries have shifted from a consolidated tax payment system to a group totalization system. Accordingly,
the accounting treatment and disclosure of corporate and local income taxes and tax-effect accounting have beenchanged following the Treatment for Auditing of Reserve under Special Taxation Measures Law and Reserve
under Special Laws (Practical Issues Task Force No. 42, August 12, 2021). Furthermore, in accordance with
Paragraph 32 (1) of the Practical Issues Task Force No. 42, the Company has assumed that there is no impact
from the change in accounting policy resulting from the adoption of the Practical Issues Task Force No. 42.

13

(Segment information)
I Six months ended September 30, 2021 (from April 1, 2021 to September 30, 2021)
1. Net sales and profit (loss) by reportable segments(Millions of yen)
Reportable segment

Net Sales:
Sales to outside customers
Intersegment sales orTransfers
Total
Segment income (loss)

Asia

China

Total

Others(Note 3)

2,352

7,497

12,32865,462

112

65,574

73

136

105

941

4,784

932

5,716

32,062

14,823

2,488

7,603

13,26970,246

1,044

71,291

138

(12)

27

1,281

1,864

3,299

13

3,313

Japan

UnitedStatesEurope28,534

14,750

3,528

Total

Note: 1. Our Group consists of the Company and these overseas corporations which are based on a manufacturing
and sales structure. As such, “Japan”, “the United States”, “Europe”, “Asia” and “China” are our fivereportable segments.
2. Major countries or regions belong to each reportable segment
Europe ··············· the Czech Republic, Russia, Germany
Asia ················· Thailand, Indonesia, Vietnam
3. “Others” comprises business operations that are not categorized as reportable segments and includes thebusiness activities of domestic subsidiaries, such as the transportation business.
2. Difference between total segment income (loss) for reportable segments and operating income on consolidated
statements of income, and details of the difference (reconciliation of the difference)(Millions of yen)
Income or loss
AmountTotal segment income
3,299
Income for “Others”
13
Intersegment eliminations
103
Operating income on consolidated statements of income
3,417
3. Impairment loss on noncurrent assets and goodwill, etc., by reportable segment(Significant impairment loss on noncurrent assets)
Not applicable(Significant change in goodwill amount)Not applicable(Significant gain on bargain purchase)
Not applicable14

II Six months ended September 30, 2022 (from April 1, 2022 to September 30, 2022)
1. Net sales and profit (loss) by reportable segments(Millions of yen)
Reportable segment

Net Sales:
Sales to outside customers
Intersegment sales ortransfers
Total
Segment income (loss)

Others(Note 3)

Total

UnitedStatesEurope31,705

19,453

2,964

9,080

10,71373,91699

74,015

3,802

60

86

168

1,142

5,260

969

6,230

35,507

19,513

3,050

9,249

11,855

79,177

1,068

80,245542(1,625)

(229)

1,238

870

796

15

812

Japan

Asia

China

Total

Note: 1. Our Group consists of the Company and these overseas corporations which are based on a manufacturing
and sales structure. As such, “Japan”, “the United States”, “Europe”, “Asia” and “China” are our fivereportable segments.
2. Major countries or regions belong to each reportable segment
Europe ··············· the Czech Republic, Russia, Germany
Asia ················· Thailand, Indonesia, Vietnam
3. “Others” comprises business operations that are not categorized as reportable segments and includes thebusiness activities of domestic subsidiaries, such as the transportation business.
2. Difference between total segment income (loss) for reportable segments and operating income on consolidated
statements of income, and details of the difference (reconciliation of the difference)(Millions of yen)
Income or loss
AmountTotal segment income
796
Income for “Others”
15
Intersegment eliminations
9
Operating income on consolidated statements of income
822
3. Impairment loss on noncurrent assets and goodwill, etc., by reportable segment(Significant impairment loss on noncurrent assets)
Not applicable(Significant change in goodwill amount)Not applicable(Significant gain on bargain purchase)
Not applicable15

3. Supplementary information
Sales states (consolidated)(Millions of yen)Six months ended
September 30, 2021

Six months ended
September 30, 2022

(Apr. 1, 2021–September.30, 2021)(Apr. 1, 2022–September.30, 2022)

Amount%Amount%FY2021

Increase/Decrease(Apr 1.2021-Mar 31,2022)

Amount%Amount%For Automobile

48,68374.2

56,754

76.7

8,070

16.6

97,45273.0

For Construction &Industrial machine

14,78022.6

14,766

20.0

-13

-0.1

31,814

23.8

For Air conditioner

997

1.5

1,114

1.5

116

11.7

2,128

1.6

Other

1,113

1.7

1,380

1.8

267

24.0

2,186

1.6

65,574100.0
74,015
Total
Notes: Amounts less than one million yen have been truncated.

100.0

8,441

12.9

133,581100.0

16