Consolidated Basis Results of the Fiscal 2021
(April 1, 2021 – March 31, 2022)
May 11, 2022
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 23, 2022
June 2，2022
Scheduled date for dividend payment:
Scheduled date for submission of securities report:
June 23, 2022
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 2021 (April 1, 2021 - March 31, 2022)(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%

20.5(1,706)–(1,401)–386(33.2)(14.5)(2,943)
–
(575)
–
578
–
Fiscal 2021
¥6,024 million 23.3%
Fiscal 2020
¥4,885 million–%
Profit per share
Ordinary profit
Operating profit
Profit per share
Return on equity
after full dilution
to total assets
to net sales

Fiscal 2021
271,178
Fiscal 2020
225,121(Note) Comprehensive income:

Yen

Yen

%

%

Fiscal 2021
16.61
–
0.4
Fiscal 2020
24.70
–
0.6
(For reference) Share of profit or loss of entities accounted for using equity method:

%

(0.5)
(0.2)
Fiscal 2021-¥1,071 million
Fiscal 2020
¥1,315 million

(0.6)
(1.3)

(2) Consolidated Financial Position
Total assets
Million yen

Fiscal 2021
282,195
Fiscal 2020
264,672(For reference) Shareholders’ equity:
Fiscal 2021
(3) Consolidated Cash Flows
Cash flow fromoperating activities
Fiscal 2021
Fiscal 2020

Ratio of shareholders’equity to total assets

Net assets

Net assets per share

Million yen%

Yen

113,703108,385¥112,657 million

39.9
40.6
Fiscal 2020

4,902.25
4,611.46¥107,428 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(5,528)5,730(2,609)(8,931)

3,527
3,668

19,85023,3192. Dividends
End of firstquarter
Fiscal 2020
Fiscal 2021
Fiscal 2022 (Forecasts)

End of second
quarter

Dividends per share
End of third
End of fiscal
quarteryear

Full fiscal year

Total dividends(annual)Payout ratio(consolidated)

Dividends/
net assets(consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

–
–
–

0.00
0.00
0.00

–
–
–

20.00
20.00
70.00

20.00
20.00
70.00

466
460

81.0
120.4
32.2

0.4
0.4

3. Consolidated Financial Forecasts for Fiscal 2022 (April 1, 2022- March 31, 2023)(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

352,000

29.8

6,600

－

7,500

－

5,000

－

217.57

* 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: Yes(b) Changes other than those in (a) above: None(c) Changes in accounting estimates: None(d) Retrospective restatements: None
(Note) For details, please refer to 3. Consolidated Financial Statements and Important Notes, (5) Notes Regarding the Consolidated Financial
Statements (Changes in Accounting Principles) on page 13 of the supplementary explanatory materials.

(3) Number of Shares Issued (Common shares)(a) Number of shares issued at the end of the period (including treasury shares)
Fiscal 2021
24,077,510 sharesFiscal 2020(b) Number of treasury shares at the end of the period
Fiscal 2021
1,096,640 sharesFiscal 2020(c) Average number of shares issued during the period
Fiscal 2021
23,274,460 sharesFiscal 2020

24,077,510 shares
781,625 shares
23,434,264 shares(For reference) Non-Consolidated Results
Non-Consolidated Operating Results and Financial Position of the Fiscal 2021 (April 1, 2021 - March 31, 2022)(1) Non-Consolidated Operating Results(Percentage figures are changes from the previous fiscal year)
Net sales
Operating profit
Ordinary profit
ProfitFiscal 2021
Fiscal 2020

Million yen%

Million yen

167,502124,31334.7(11.6)(2,973)(4,270)%142(1,672)%Million yen

–
–

%

–
–

3,370
(402)

Profit per shareafter full dilution

Profit per share
Yen

Fiscal 2021
Fiscal 2020

Million yen

–
–

Yen

–
–

144.77(17.16)(2) Non-Consolidated Financial Position
Total assets

Ratio of shareholders’equity to total assets

Net assets

Million yen

Fiscal 2021
212,562
Fiscal 2020
202,575(For reference) Shareholders’ equity:
Fiscal 2021

Net assets per share

Million yen%

Yen74,79071,613¥74,790 million

35.2
35.4
Fiscal 2020

3,253.98
3,073.60¥71,613 million

2. Non-Consolidated Financial Forecasts for Fiscal 2022 (April 1, 2022 - March 31, 2023)(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

217,000%

29.6

Million yen%

Million yen%

Million yen

%

Yen

1,800

－

3,700

－

3,000

(11.0)

130.52* 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 .................................................................................... 2(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 ......................................................................................................... 4
3. Consolidated Financial Statements and Important Notes ........................................................................................................ 5(1) Consolidated Balance Sheets ............................................................................................................................................. 5(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ......................................... 7
Consolidated Statements of Income ................................................................................................................................. 7
Consolidated Statements of Comprehensive Income ....................................................................................................... 8(3) Consolidated Statements of Changes in Net Assets ........................................................................................................... 9(4) Consolidated Cash Flow Statements .................................................................................................................................. 11(5) Notes Regarding the Consolidated Financial Statements ................................................................................................... 13(Note related to going-concern assumption) .................................................................................................................... 13(Changes in accounting principles) .................................................................................................................................. 13(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, 2022 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 continued to face a challenging situation chiefly due to theimpact of COVID-19 variants. Even so, there were signs of a recovery overall with progress of vaccinations, particularly indeveloped countries. The Japanese economy also saw signs of improvement in business overall, although they did not result in afull recovery from the downturn caused by the COVID-19 pandemic. The business environment surrounding the Group, meanwhile,remained severe and difficult to forecast mainly because of rises in the price of steel scrap and other raw materials, coal, a fuel for
power generation, energy, secondary materials, logistics, etc., a decrease in auto production due to supply shortages ofsemiconductors, among other factors.
Under these circumstances, the Group has steadily implemented various measures in line with our medium-term business plan,“Growth & Change 2021.” As part of the plan, the Group decided to consolidate its domestic production facilities of steel wheels
for passenger cars, with a view toward the establishment of an optimal production system. Structural reforms were implemented in
our Wheel Division including the establishment of a new Aluminum Business Integration Center to consolidate development andoperational functions for passenger aluminum wheels and promoting further integrated operations. Also, the Sales Headquarters
were newly established directly under management to strengthen sales capabilities, and the Business Development Strategy Centerhas been established to centrally and consistently manage basic research into new strategic products and new technologies and tocreate new businesses. In addition, the company strengthened its sustainable management base by introducing an advanced metalsorting facility to reinforce its steel recycling business.
The financial results for the fiscal year under review include consolidated net sales of ¥271,178 million (up 20.5% year on year),mainly due to the transfer of raw material and energy price increases to product prices and increased sales volumes of undercarriage
components for construction machinery and ultra-large wheels for mining trucks. Meanwhile, the impact of increased costs due tohigher prices for steel scrap and coal, a fuel for power generation, resulted in an operating loss of ¥1,706 million (compared to an
operating loss of ¥2,943 million in the previous fiscal year) and an ordinary loss of ¥1,401 million (compared to an ordinary lossof ¥575 million in the previous fiscal year). Net income attributable to owners of parent amounted to ¥386 million (down 33.2%
year on year).
The Group has applied Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement
No. 29 issued on March 31, 2020) and other standards since the beginning of the first quarter of the consolidated fiscal year underreview. For details, please refer to 3. Consolidated Financial Statements and Important Notes, (5) Notes Regarding the Consolidated
Financial Statements (Changes in Accounting Principles).
Performance by Segment(Steel Business)
In the steel industry, demand for steel for the construction and manufacturing sectors remained firm and crude steel production
showed signs of improvement over the previous year. However, conditions remained challenging because prices for steel scrap, aprincipal raw material, and energy prices continued to rise.
Given these circumstances, the Group worked to improve steel sales, among other initiatives, resulting in net sales increase to¥88,915 million (up 17.5% year on year), mainly as a result of the Group's efforts to improve the selling price of steel products.
However, the Group was unable to pass on increased costs attributable to rises in prices for steel scrap, energy and secondary
materials to steel sales prices, resulting in operating loss of ¥625 million (compared to operating profit of ¥1,293 million in theprevious fiscal year).
(Automotive & Industrial Machinery Components Business)
In the construction machinery industry, demand for hydraulic shovels expanded in the United States, Europe and Southeast Asia.
Demand for mining machinery remained strong worldwide due to rising resource prices. In the automobile industry, production
volume decreased from the level in the previous fiscal year in Japan due to the impact of the supply shortage of semiconductors,
etc.
Given these conditions, the sales volume increased mainly for undercarriages of construction machinery and ultra-large wheels
for mining trucks. As a result, net sales totaled ¥166,542 million (up 22.4% year on year) and operating profit of ¥4,813 million(compared to operating loss of ¥221 million in the previous fiscal year).
(Power Business)
A challenging business environment continued due to the rising price of coal, a fuel used for power generation. Given thesecircumstances, the Group worked on the stable supply of electricity in line with its business plan. However, the impact of increased
costs resulted in net sales of ¥9,718 million (up 28.2% year on year) and operating loss of ¥1,957 million (compared to operating
income of ¥165 million in the previous fiscal year).
(Science Business)
The Group manufactures and sells synthetic mica and crawler robots. Synthetic mica was affected chiefly by sluggish demandfor cosmetics in Japan, offsetting a recovery in demand overseas. Reflecting this situation, net sales rose 11.8% year on year, to¥956 million with operating loss amounting to ¥161 million (compared to an operating loss of ¥1,162 million in the previous fiscal
year).
(Leasing Business)
In the leasing business, operating profit was ¥699 million (up 0.0% year on year).

- 2 -(Others)
The Group operates a civil engineering and construction business, sports club, OSSO, and other businesses. Net sales were
¥5,045 million (up 2.7% year on year) and operating income was ¥486 million (up 74.9% 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 consolidated fiscal year under review stood at ¥282,195 million, an increase of ¥17,523 million
from the end of the previous consolidated fiscal year. This was mainly due to increases of ¥9,436 million in notes and accounts
receivable - trade and contract assets (notes and accounts receivable - trade at the end of the previous consolidated fiscal year), andof ¥6,807 million in merchandise and finished goods.
Liabilities were ¥168,492 million, an increase of ¥12,205 million compared with the end of the previous consolidated fiscal year.
This was caused mainly by increases of ¥6,722 million in notes and accounts payable - trade, ¥4,700 million in straight bonds
payable including the current portion of bonds payable, and of ¥2,337 million in electronically recorded monetary obligations operating.
Net assets were ¥113,703 million, an increase of ¥5,317 million from the end of the previous consolidated fiscal year. Major
factors included an increase of ¥3,958 million in foreign currency translation adjustments and ¥969 million in accumulated
retirement benefit adjustments. As a result, net assets per share stood at ¥4,902.25 and the net worth ratio was 39.9%.
Cash flows
Cash and cash equivalents (hereinafter referred to as "funds") at the end of the consolidated fiscal year under review stood at¥19,850 million, a decrease of ¥3,468 million year on year.
(Cash flows from operating activities)
Funds used in operating activities were ¥5,528 million (¥5,730 million achieved in the previous consolidated fiscal year). This
mainly reflected increases of ¥13,809 million in inventories and of ¥8,504 million in trade receivables, and depreciation of ¥12,775
million.
(Cash flows from investment activities)
Funds used in investment activities stood at ¥2,609 million, a decreased of ¥6,322 million from the previous consolidated fiscal
year. This mainly reflected the purchase of property, plant and equipment of ¥8,122 million and gain on sales of investment
securities of ¥5,549 million.
(Cash flows from financing activities)
Funds achieved by financing activities were ¥3,527 million (down ¥140 million from the previous consolidated fiscal year). This
mainly reflected proceeds from issuance of bonds of ¥9,929 million and payments for redemption of bonds of ¥5,300 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 2017

Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021

43.9

39.2

40.3

40.6

39.9

29.3

18.3

12.7

12.3

8.6

5.7

6.8

4.7

14.1

(15.6)

17.3

16.0

25.9

11.1

(11.0)

Equity ratio: Shareholders’ equity / Total assets
Equity ratio based on market value: Market capitalization / Total assets
The ratio of interest-bearing debt to operating cash flow: Interest-bearing debt / Cash flows
Interest coverage ratio: Cash flows / Interest payments(Note 1) All amounts are on a consolidated basis.
(Note 2) Total market value for 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 -(3) Future Outlook
While the global economy is expected to begin to improve from the downturn in economic activities, the outlook for the world
economy is likely to remain uncertain due to concerns including the resurgence of COVID-19 infections, a rise in geopolitical risks
such as tensions in Ukraine, and sharp fluctuations in exchange rates. In addition, the business environment surrounding the Groupis likely to remain difficult going forward, including the increases in prices of energy and raw materials, the impact of supply
shortage of semiconductors and other parts on automobile production among others, and the globally tight supply of marine
container transportation services.
In this environment, the Group will continue to closely monitor demand trends in each business segment and engage in ongoingcost reduction efforts, as well as form selling prices that are appropriate for soaring costs, including raw material and transportation
costs. In addition, the Group will improve profitability by leveraging the business platform strengthened through structural reforms
in our medium-term management plan "Growth & Change 2021," and further enhance corporate value by promoting initiatives that
contribute to the sustainability of the Group and society.
The consolidated forecasts for fiscal 2022 include consolidated net sales of ¥352,000 million, operating profit of ¥6,600 million,
ordinary profit of ¥7,500 million, and profit attributable to owners of parent of ¥5,000 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 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.
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 ¥70 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.

- 4 -3. Consolidated Financial Statements and Important Notes(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
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- 5 -As of March 31, 2022

24,477
51,10921,037－－60,54520,926
4,902
14,574
6,427(58)
122,360

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

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

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
95,338

3,890
3,890

3,440
3,440

29,257
206
1,634
386
8,892
(47)
40,329142,311
264,672

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

(Millions of yen)
As of March 31, 2021
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-sale securities
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- 6 -As of March 31, 2022

27,00913,21523,982
5,300
232
923
13,53984,20133,731
15,55222,807－158
891
14,05587,19627,00024,793
367
5,736
211

37,00026,228
235
6,190
163

36

23

60

25

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

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

20,98318,60662,023(1,943)
99,66920,98318,606
62,114(2,287)
99,4179,443
12(2,266)
568
7,758
957
108,385
264,672

9,990
19
1,692
1,537
13,240
1,045
113,703
282,195

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
Fiscal year ended
March 31, 2021
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating loss
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Share of profit of entities accounted for using equity
methodSubsidies for employment adjustment
Insurance claim income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodInsurance expenses
Other
Total non-operating expenses
Ordinary 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- 7 -Fiscal year ended
March 31, 2022
225,121
198,318
26,80329,746(2,943)271,178
240,12231,05532,762(1,706)

135
659
201

135
721
753

1,315

－

562
142
395
3,413

102
328
366
2,407

520

500

－

1,071

117
408
1,045
(575)

118
411
2,101
(1,401)

57
1,594

37
3,413

－

791

1,651

4,242

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

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

(Consolidated Statements of Comprehensive Income)(Millions of yen)
Fiscal year ended
March 31, 2021
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- 8 -Fiscal year ended
March 31, 2022
587

453

3,972
17
(986)
1,196

481
7
3,169
968

97

944

4,297
4,885

5,571
6,024

4,928

5,868

(42)

156

(3) Consolidated Statements of Changes in Net Assets
Previous consolidated fiscal year (April 1, 2020 - March 31, 2021)(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

20,983Retained earnings

18,606

Total shareholders'equityTreasury shares

61,444(1,711)

99,323

Changes during period－

Dividends of surplus
Profit attributable to owners ofparent578

578

Purchase of treasury shares

(240)

(240)

Disposal of treasury shares

88

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

－

－

578

(232)

346

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

99,669Total
Remeasurements accumulatedof definedotherbenefit planscomprehensive
incomeNoncontrollinginterests

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedges5,440(5)Foreigncurrencytranslation
adjustment(1,401)

(625)

3,409

Total net assets

1,068

103,800

Changes during period
Dividends of surplus－

Profit attributable to owners ofparent

578

Purchase of treasury shares(240)

Disposal of treasury shares

8

Net changes in items other thanshareholders' 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- 9 -Consolidated fiscal year under review (April 1, 2021 - March 31, 2022)(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

20,983Retained earnings

18,60662,023Cumulative effects of changes inaccounting policies

Total shareholders'equityTreasury shares(1,943)

99,669171

Restated balance

20,98318,606

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

Total
Remeasurements accumulatedof definedotherbenefit planscomprehensive
incomeNoncontrollinginterests

Accumulated other comprehensive income
Valuation
Deferred gains
difference onor losses onavailable-forhedges
sale securities
Balance at beginning of period

9,443

12

Foreigncurrencytranslation
adjustment(2,266)

568

7,758

Total net assets

957

Cumulative effects of changes inaccounting policies
Restated balance

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 -

(4) Consolidated Cash Flow Statements(Millions of yen)
Fiscal year ended
March 31, 2021
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
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- 11 -

Fiscal year ended
March 31, 2022
856
12,515
－
124
(142)

1,790
12,775
108
124
(328)

－

(791)

－
26

648
67

36

(48)

107
(53)
(795)
520

(73)
(263)
(857)
500

(1,315)

1,071(1,594)(3,408)162

249(6,498)
(482)
3,051
(695)
5,823
904
(514)
142
(625)
5,730

(8,504)(13,809)
8,752(2,524)(4,520)
868
(504)
121
(1,492)△5,528(413)(11,495)
117
(15)
2,725
(14)
297
(137)
4
(8,931)

126(8,122)
213
(30)
5,549
(11)
18
(364)
11
(2,609)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

7,173
4,585
(6,925)
4,964(5,500)
180
(493)
(240)
(7)
(68)
3,668
(223)
243
23,07523,319- 12 -(99)8,243(8,154)
9,929(5,300)
60
(256)
(356)
(469)
(68)
3,527
1,141
(3,468)23,31919,850(5) Notes Regarding the Consolidated Financial Statements(Note related to going-concern assumption)
Not applicable.
(Changes in accounting principles)(Application of Accounting Standard for Revenue Recognition, etc.)
The Group has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc. since
the beginning of the fiscal year under review and recognizes revenue from goods or services which the Group promised to provide
at an amount expected to be received in exchange for the goods or services at the time when control over the promised goods orservices is transferred to a customer.
Major changes as a result of the foregoing are as follows.
For transactions in which the Group's role in the sale of a product to a customer constitutes that of an agent, the Group previously
recognized as revenue the gross proceeds received from customers. However, this has been changed to the method that recognizes
revenue at the net amount after deducting the amount paid to the third party from the gross amount received from customers.
Regarding for-fee supply transactions that constitute repurchase agreements, the Group continues to recognize as financialtransactions the inventory of supplies remaining at the for-fee recipient. Also, the Group recognizes the amount equivalent to theinventory of supplies remaining at the end of the fiscal year under review at the for-fee recipient (liability relating to for-fee
transactions) and includes it in "Other" under “Current liabilities.”
Moreover, regarding certain product sales from which revenue was recognized over the sales price (consideration) collection
period, the Group changed to recognizing revenue at the point when control of the product is transferred to the customer.
In accordance with the transitional treatment prescribed in the proviso of Paragraph 84 of the Accounting Standard for Revenue
Recognition, the cumulative effect of retrospective application of the new accounting policy prior to the beginning of the fiscal
year under review is added to or deducted from retained earnings at the beginning of the fiscal year under review, and the new
accounting principles were applied from such beginning balance. However, the new accounting principles were not applied
retrospectively to contracts for which almost all revenue amounts were recognized in accordance with the previous treatment prior
to the beginning of the fiscal year under review by applying the method prescribed in Paragraph 86 of the Accounting Standard for
Revenue Recognition.
In addition, the Group has applied the method prescribed in paragraph 86 and note (1) of the Accounting Standard for Revenue
Recognition to account for contract modifications made prior to the beginning of the fiscal year under review based on the contract
terms after reflecting all contract modifications, and the cumulative effect of such modifications has been added to or deductedfrom retained earnings at the beginning of the fiscal year under review. In the consolidated balance sheets for the previous
consolidated fiscal year, "Notes and accounts receivable - trade," which were presented in "Current assets" in the previous fiscal
year, are included in "Notes and accounts receivable - trade and contract assets" in the fiscal year under review. However, in
accordance with the transitional treatment prescribed in Paragraph 89-2 of the Accounting Standard for Revenue Recognition, no
reclassification has been made for the previous consolidated fiscal year using the new presentation.
As a result, accounts receivable increased by ¥489 million, raw materials and supplies increased by ¥258 million, and tools,
furniture and fixtures (property, plant and equipment “Other, net”) decreased by ¥151 million in the consolidated balance sheets
for the fiscal year under review, compared with those before the adoption of the revenue recognition accounting standard. In the
consolidated statements of income for the fiscal year under review, net sales and cost of sales decreased by ¥22,744 million and¥22,828 million, respectively, operating loss and ordinary loss decreased by ¥83 million, respectively, and profit before income
taxes increased by ¥83 million.
In consolidated cash flows for the fiscal year under review, profit before income taxes increased by ¥83 million, while
increase/decrease in notes and accounts receivable - trade and inventories increased by ¥489 million and ¥258 million, respectively.
The beginning balance of retained earnings in the consolidated statements of changes in net assets increased by ¥171 million due
to the cumulative effect reflected in net assets at the beginning of the fiscal year under review.
Net assets per share and net income per share increased by ¥14.42 and ¥6.87, respectively, during the fiscal year under review.
(Application of accounting standard for fair value measurement, etc.)
The Group has applied "Accounting Standard for Fair Value Measurement" (ASBJ Statement No. 30, July 4, 2019), etc. fromthe beginning of the consolidated fiscal year under review. In accordance with the transitional treatment set forth in Article 19 of
Accounting Standard for Fair Value Measurement and Article 44-2 of "Accounting Standard for Financial Instruments" (ASBJ
Statement No.10, July 4, 2019), the Group has applied prospectively a new accounting policy prescribed by Accounting Standard
for Fair Value Measurement, etc. This has no effect on the quarterly consolidated financial statements.

- 13 -

(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 the business divisions. There are fivereportable segments: the Steel Business, the Automotive & Industrial Machinery Components Business, the Power Business,
Science Business, and Leasing Business.
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. The Science Business 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
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.

(Application of accounting standard for revenue recognition, etc.)
As described in Changes in Accounting Principles, the Accounting Standard for Revenue Recognition and other standards
were applied from the beginning of the fiscal year under review, and the accounting method for revenue recognition waschanged, therefore, the measurement method for business segments was changed in the same manner.
As a result of this change, compared with the previous method, net sales for the fiscal year under review decreased by¥16,370 million in the Steel Business, ¥6,253 million in the Automotive and Industrial Machinery Components Business, and¥121 million in “Others.” Segment profit increased by ¥83 million in the Automobile & Industrial Machinery Components
Business.

- 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, 2020 to March 31, 2021)
Reportable segment

Steel

Automotive&Industrial
Power
Machinery
Components

Science Leasing

Total

Others(Note) 1

Total(Millions of yen)Amountrecorded intheAmount ofconsolidat
adjustment
ed(Note) 2
financialstatements(Note) 3

Net sales
Net sales tooutsidecustomers
Internal sales
or transfer
betweensegments
Total
Profits ofsegment
Assets ofsegment

75,657

136,113

7,583

855

－

220,209

4,911

225,121－225,121

14,384

－

－

－

1,137

15,521－

15,521(15,521)－90,041

136,113

7,583

855

1,137

235,7314,911

240,643(15,521)225,121

1,293

(221)

165

(1,162)

698

773

278

1,051

(3,994)(2,943)

92,843

127,905

5,155

2,286

4,962

233,153

8,685

241,838

22,833

264,672

4,883

5,999

516

217

163

11,78036

11,817698

12,515

Other items
Depreciation

Depreciation
Increase inproperty, plant
3,334
5,685
568
224
1
9,813
164
9,978
393
and equipment
and intangible
assets(Notes)1. The category "Others" includes the business segment not included in the reportable segments and includes indoor
2.

and outdoor sign systems, civil engineering and construction, and operation of sports club.
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. not allocatedto the respective reportable segments. The common corporate expenses are mainly the expenses related tothe administrative divisions of the Company that are not attributable to the reportable segments.
(2) Assets of segment in an amount of ¥22,833 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 -¥4,791 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 inan amount of ¥393 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 -

10,371

Consolidated fiscal year under review(from April 1, 2021 to March 31, 2022)
Reportable segment

Steel

Automotive&Industrial
Power
Machinery
Components

Science Leasing

Total

Others(Note) 1

Total(Millions of yen)Amountrecorded intheAmount ofconsolidat
adjustment
ed(Note) 2
financialstatements(Note) 3

Net sales
Net sales tooutsidecustomers
Internal sales
or transfer
betweensegments
Total
Profits ofsegment
Assets ofsegment

88,915

166,542

9,718

956

－

266,133

5,045

271,178－

271,178

23,604

－

－

－

1,138

24,743－24,743(24,743)－

112,519

166,542

9,718

956

1,138

290,876

5,045

295,921(24,743)

271,178

(625)

4,813

(1,957)

(161)

699

2,768

486

3,255

(4,962)(1,706)

101,544

142,245

5,296

2,157

4,952

256,196

8,356

264,553

17,642

282,195

4,879

6,266

490

217

165

12,019123

12,142633

12,775

Other items
Depreciation

Depreciation
Increase inproperty, plant
2,605
5,254
9
33
45
7,949
219
8,169
260
and equipment
and intangible
assets(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.

The details of the adjustment are as explained below.
(1) Profits of segment in an amount of a loss of ¥4,962 million are common corporate expenses, etc. not allocatedto the respective reportable segments. The common corporate expenses are mainly the expenses related tothe administrative divisions of the Company that are not attributable to the reportable segments.
(2) Assets of segment in an amount of ¥17,642 million include the corporate assets of ¥25,120 million notallocated to the respective reportable segments and the elimination of intra-company transactions between
segments in an amount of -¥7,477 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 ¥633 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 in3.

an amount of ¥260 million is mainly capital spending of the administrative divisions of the Company.
Profit of segment is adjusted with operating profit recorded under the consolidated financial statements.

- 16 -

8,429

(Information per share)Previous consolidated fiscal year (from Consolidated fiscal year under review
April 1, 2020 to March 31, 2021)(from April 1, 2021 to March 31, 2022)
Net assets per share
Profit per share

4,611.46 yen

4,902.25 yen

24.70 yen

16.61 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 (48 thousand shares for the previous consolidated fiscal year and 42 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 that are deducted in the calculation of the average number of shares during the fiscal
year (50 thousand shares for the previous consolidated fiscal year and 44 thousand shares for the consolidated fiscal year underreview).
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, 2020 to March 31, 2021)(from April 1, 2021 to March 31, 2022)

Profit attributable to owners of parent(million yen)Amount not attributable to common shareholders(million yen)

578

386

－

－

578

386

23,434

23,274

Profit attributable to owners of parent in relation
to common shares (million yen)
Average number of shares during the fiscal year
(thousand shares)(Important events after the reporting period)
Not applicable.
(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 -