Consolidated Basis Results of the Fiscal 2019
(April 1, 2019 – March 31, 2020)
May 26, 2020
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
Shuichi Tachibana, Operating Officer, General Manager, General Affairs Department
Telephone: 03-3493-0777 / (Overseas) 81-3-3493-0777
Scheduled date for holding of ordinary general meeting of shareholders: June 24, 2020
Scheduled date for dividend payment:–
Scheduled date for submission of securities report:
June 24, 2020
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 2019 (April 1, 2019 - March 31, 2020)(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

%

(8.0)
2,851
(62.0)
3,597(61.6)(4,497)
–
24.2
7,505
(6.2)
9,357
16.5
7,114
29.3
Fiscal 2019-¥5,898 million–%
Fiscal 2018
¥4,234 million-41.2%
Profit per share
Ordinary profit
Operating profit
Profit per share
Return on equity
after full dilution
to total assets
to net sales

Fiscal 2019
263,305
Fiscal 2018286,227(Note) Comprehensive income:

%

%

%

Fiscal 2019
(191.42)–(4.2)
Fiscal 2018302.85–
6.5(For reference) Share of profit or loss of entities accounted for using equity method:

Yen

Yen

1.3
3.5

1.1
2.6

Fiscal 2019
Fiscal 2018

¥1,727 million¥583 million(2) Consolidated Financial Position
Total assets
Million yen

Fiscal 2019
254,659
Fiscal 2018284,198(For reference) Shareholders’ equity:
Fiscal 2019(3) Consolidated Cash Flows
Cash flow fromoperating activities
Fiscal 2019
Fiscal 2018

Ratio of shareholders’equity to total assets

Net assets

Net assets per share

Million yen%

Yen103,800
112,362¥102,732 million

40.3
39.2
Fiscal 2018

4,372.66
4,737.26¥111,304 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

16,206
11,725(16,048)(20,835)(6,461)
15,936

23,07529,5602. Dividends
End of firstquarter
Fiscal 2018
Fiscal 2019
Fiscal 2020 (Forecasts)

End of second
quarter

Dividends per share
End of third
End of fiscal
quarteryear

Full fiscal year

Total dividends(annual)Payout ratio(consolidated)

Dividends/
net assets(consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

–
–
–

20.00
40.00
–

–
–
–

70.00
0.00
–

90.00
40.00
–

2,119
942

29.7
–
–

1.9
0.9

(Note) The Company withholds its dividend forecasts for fiscal 2020.
3. Consolidated Financial Forecasts for Fiscal 2020 (April 1, 2020 - March 31, 2021)
The consolidated financial forecasts for fiscal 2020 has been withheld because it is currently difficult to rationally estimate suchforecast. For details, refer to “1. Overview of Operating Results” on page 4.

–1–

* 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 201924,077,510 sharesFiscal 2018(b) Number of treasury shares at the end of the period
Fiscal 2019
583,315 sharesFiscal 2018(c) Average number of shares issued during the period
Fiscal 201923,494,830 sharesFiscal 201824,077,510 shares
582,007 shares
23,490,559 shares(For reference) Non-Consolidated Results
Non-Consolidated Operating Results and Financial Position of the Fiscal 2019 (April 1, 2019 - March 31, 2020)(1) Non-Consolidated Operating Results(Percentage figures are changes from the previous fiscal year)
Net sales
Operating profit
Ordinary profit
ProfitFiscal 2019
Fiscal 2018

Million yen%

Million yen%

Million yen%

Million yen%

140,646
150,768(6.7)
8.6(1,241)
1,048–(62.2)

369
5,566(93.4)
32.5(5,580)1,245–(44.9)

Profit per shareafter full dilution

Profit per share
Yen

Fiscal 2019
Fiscal 2018

Yen

–
–

(237.50)53.00(2) Non-Consolidated Financial Position
Total assets
Million yen

Fiscal 2019
196,671
Fiscal 2018
215,608(For reference) Shareholders’ equity:
Fiscal 2019

Net assets

Ratio of shareholders’equity to total assets

Net assets per share

Million yen%

Yen

68,464
77,198¥68,464 million

34.8
35.8
Fiscal 2018

2,913.68
3,285.17¥77,198 million* 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 4. 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.

–2–

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

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

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

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

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

6

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

6

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

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

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

9

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

9

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

Note: This document has been translated from the original Japanese version for reference purposes only. In the event of any
discrepancy between this translated document and the original Japanese version, the original shall prevail.
The original disclosure in Japanese was released on May 26th, 2020 at 15:00 (GMT+9).
The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from thetranslation.

–3–

1. Overview of Operating Results(1) Overview of Operating Results for the Fiscal Year under Review
Operating Results for the Consolidated Fiscal Year under Review
During the fiscal year under review, a sense of stagnation in the global economy increased amid continued slowdown in the
Chinese economy, chiefly due to the impact of the U.S.-China trade tensions. Additionally, toward the end of the fiscal year, the
COVID-19 pandemic led to severe restrictions on economic activity and had a sudden chilling effect on the global economy. The
Japanese economy was also hit by the COVID-19 pandemic at a time when business sentiment especially among manufacturers
was deteriorating due to slowing exports and production, causing a sharp downturn.
Under these circumstances, the Group launched a medium-term management plan titled Growth & Change 2021 from FY2019. In
the Automotive & Industrial Machinery Components Business, the Group diligently worked to increase earning power byimplementing structural reforms through optimization of production systems across the Group and other initiatives. In the SteelBusiness, the Group sought sustainable growth by focusing on the development of new products to meet the needs of customers
and society such as deformed steel sections utilizing the Group’s proprietary technologies.
The financial results for the fiscal year under review include consolidated net sales of ¥263,305 million (down 8.0% year on year)
due to substantially lower sales volume in the Automotive & Industrial Machinery Components Business, operating profit of¥2,851 million (down 62.0% year on year), and ordinary profit of ¥3,597 million (down 61.6% year on year). Loss attributable toowners of parent was ¥4,497 million (compared to profit attributable to owners of parent of ¥7,114 million the previous fiscal
year) mainly as a result of the recording of a loss on the valuation of investment securities and the reversal of deferred tax assets.
Performance by Segment(Steel Business)
In the electric furnace industry, demand for steel materials of both construction and manufacturing companies remained low andfelled further in the final stages of the fiscal year. Meanwhile, the price of steel scrap, a key raw material, declined considerablyfrom the beginning of the fiscal year.
Given these circumstances, the Group’s net sales declined to ¥73,404 million (down 8.7% year on year) due to a decrease in
selling prices of steel materials. However, operating profit increased to ¥4,142 million (up 84.3% year on year) thanks to anincrease in the difference between selling prices and the steel scrap purchase price and efforts to ensure sales volume andcontinuously improve costs.
(Automotive & Industrial Machinery Components Business)
In the automotive industry, production volumes in Japan, North America and China decreased year on year. In the construction
machinery industry, Japanese manufacturers’ production of hydraulic shovels dropped significantly mainly due to decreased sales
and inventory adjustment in China, Southeast Asia, and other countries, and the impact of damage caused by typhoons in Japan.
Demand for mining machinery declined primarily in Southeast Asia, reflecting lower resource prices. In the final stages of the
fiscal year, the COVID-19 pandemic which began in China also affected production of automobiles and hydraulic shovels.
Given these challenging conditions, the sales volume of parts for the undercarriages of construction machinery, mining
machinery wheels and other components decreased substantially, despite efforts to reduce fixed costs through continuous cost
improvements and a review of production systems. As a result, net sales totaled ¥174,015 million (down 7.5% year on year) andoperating profit stood at ¥1,657 million (down 78.8% year on year).
(Power Business)
The Group worked on the stable supply of electricity in line with its business plan. Net sales came to ¥9,326 million (down 11.7%
year on year) and operating profit amounted to ¥852 million (down 30.6% year on year), given the challenging businessenvironment amid lower demand and intensifying price competition.
(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¥6,558 million (down 6.9% year on year), due in part to the sluggish civil engineering and construction business, and operating
profit was ¥893 million (down 42.4% year on year), primarily reflecting a rise in upfront expenses to increase production ofsynthetic mica used in cosmetics in addition to decreased sales.

–4–(2) Overview of Financial Position for the Fiscal Year under Review
Asset, liabilities and net assets
Total assets at the end of the consolidated fiscal year under review decreased by ¥29,539 million from the end of the previous
consolidated fiscal year, to ¥254,659 million. Primary factors for the decrease included a ¥15,054 million decrease in notes andaccounts receivable-trade, a ¥5,860 million decrease in cash and deposits, and a ¥4,652 million decrease in inventories.
Liabilities were ¥150,858 million, a decrease of ¥20,978 million from the end of the previous consolidated fiscal year. This wascaused mainly by a decrease of ¥7,581 million in electronically recorded obligations - operating, a decrease of ¥7,318 million innotes and accounts payable-trade, and a ¥3,975 million decrease in long-term borrowings.
Net assets were ¥103,800 million, a decrease of ¥8,561 million from the end of the previous consolidated fiscal year. This was
mainly due to a decrease of ¥7,088 million in retained earnings and a decrease of ¥843 million in valuation difference on
available-for-sale securities. As a result, net assets per share stood at ¥4,372.66 and the net worth ratio was 40.3%.
Cash flows
Cash and cash equivalents (hereinafter referred to as “funds”) at the end of the consolidated fiscal year under review stood at¥23,075 million. This was due to the allocation of increased funds from operating activities to the purchase of property, plant andequipment in investment activities and the reduction of interest-bearing debt in financing activities.
(Cash flows from operating activities)
Funds achieved by operating activities were ¥16,206 million, an increase of ¥4,480 million from the previous consolidated fiscal
year. This mainly reflected profit before income taxes of ¥1,741 million, depreciation of ¥12,332 million, a decrease in tradereceivables of ¥14,938 million and a decrease in trade payables of ¥14,795 million.
(Cash flows from investment activities)
Funds used in investment activities stood at ¥16,048, a decrease of ¥4,786 million from the previous consolidated fiscal year.
This mainly reflected the purchase of property, plant and equipment of ¥16,334 million.
(Cash flows from financing activities)
Funds used in financing activities stood at ¥6,461 million (¥15,936 million in the previous consolidated fiscal year). This mainlyreflected a net decrease in borrowings of ¥7,872 million, proceeds from issuance of bonds of ¥9,929 million, redemption of bondsof ¥5,000 million and dividend payment o ¥2,587 million.
(Reference) Cash flow-related indicators
Fiscal 2015

Fiscal 2016

Fiscal 2017

Fiscal 2018

Fiscal 2019

Equity ratio (%)

42.7

46.6

43.9

39.2

40.3

Equity ratio based on market value (%)

22.7

31.1

29.3

18.3

12.7

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

3.6

5.5

5.7

6.8

4.7

Interest coverage ratio (times)

16.9

12.0

17.3

16.0

25.9

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.

–5–(3) Future Outlook
The sharp fall in automobile and construction machinery production across the world amid the continuing COVID-19 pandemic
is significantly affecting the Group’s Automotive & Industrial Machinery Components Business and it is feared that this businesswill be even more severely hit. Similarly in the Steel Business, the demand environment is extremely uncertain as a result of
delays with construction work and the suspension of plants in the manufacturing industry.
The consolidated financial forecasts for fiscal 2020 have yet to be determined due to the difficulty of appropriately andreasonably calculating the forecasts at the present time, given that the impact of the COVID-19 outbreak will differ significantly
depending on when the outbreak comes to an end. The Company will promptly announce the financial forecasts when the impact
of COVID-19 on its operating results can be reasonably estimated.
In face of the chilling effect of the dramatic global downturn on the demand environment, the Group will implement a range ofmeasures as shown below to minimize the impact on its revenue and to help increase its corporate strength and improve
profitability.
- Review production operations and systems in response to dramatic sharp fall in demand- Reduce fixed costs to rebuild strong revenue base
- Reduce directors’ compensation and management salaries- Apply for government subsidies for employment adjustment(4) Basic Profit Allocation Policy, and Dividends for the Current and New Fiscal Year
The Company’s basic policy for profit distribution is to return profits to its shareholders based on the consolidated businessresults, while at the same time increasing retained earnings for the development of future business and the strengthening ofcorporate structure. The Company will allocate retained earnings to investment in new business and the development of newtechnologies and products that will contribute to long-term, stable business development, thereby enabling it to strengthen its
corporate structure and global competitiveness. In terms of the index of profit return based on consolidated business earnings, itwill aim for an approximate range of 30% to 35%, a consolidated payout ratio that will be determined after carefully studying thepossibility of continuing to pay dividends consistently.
In accordance with the above policy, the Company regrets that, in light of consolidated business results for the fiscal year underreview and in response to the dramatic changes in the business environment due to COVID-19, it will be unable to pay the yearend dividend for the fiscal year under review. Given the interim dividend of ¥40 per share paid, the annual dividend for the fiscal
year under review will be ¥40 per share.
The dividends for the next fiscal year have yet to be determined due to the difficulty of reasonably calculating forecasts at thepresent time. The Company will promptly disclose its dividend forecast as soon as possible.

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

–6–3. Consolidated Financial Statements and Important Notes(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2019
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–7–

As of March 31, 2020

29,671
59,81822,327
7,413
15,1697,417△66
141,751

23,811
44,76420,7085,529
14,0186,271△28115,074

93,166△62,636
30,530204,197△157,286
46,911
15,287
5,089△3,2901,799
3,696
42,392△40,630
1,761
99,98692,392△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

5,160
5,160

4,637
4,637

27,093
478
2,340
345
7,100
△58
37,300142,447
284,198

24,774
479
1,360
295
7,642
△50
34,500139,584
254,659(Millions of yen)
As of March 31, 2019
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-based remuneration for
directors (and other 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–8–

As of March 31, 2020

31,88020,26819,414
5,000
878
2,170
18,29397,907

24,562
12,687
15,495
5,500
433
502
14,872
74,05322,80032,461888
1,093

27,30028,486
572
4,649

162

175

21

39

41

46

371
12,617373
3,096
73,929171,836290
12,285355
2,602
76,805150,858

20,98318,606
68,532△1,708106,413

20,98318,60661,444△1,711
99,323

6,284

5,440

△5
△1,023
△365
4,890
1,057
112,362
284,198△5△1,401
△625
3,409
1,068
103,800
254,659(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
Fiscal year ended
March 31, 2019
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodInsurance claim income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Loss on valuation of investment securities
Impairment loss
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Profit attributable to non-controlling interests
Profit (loss) attributable to owners of parent–9–

Fiscal year ended
March 31, 2020

286,227
244,108
42,11834,613
7,505

263,305
227,245
36,05933,208
2,851

105
712

93
695

583

1,727

1,661
368
3,431

53
395
2,964

669
252
656
1,578
9,357

609
422
1,186
2,218
3,597

3,222
0
3,222

453
17
471

681
268
－
1,188
97
2,234
10,345
3,737
△546
3,191
7,154
40
7,114

50
256
1,860
－
159
2,327
1,741
1,475
4,706
6,181
△4,44056△4,497

(Consolidated Statements of Comprehensive Income)(Millions of yen)
Fiscal year ended
March 31, 2019
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– 10 –

Fiscal year ended
March 31, 2020
7,154

△4,440△1,608
4
△921
△129

△785
0
△227
△261

△264

△183

△2,9204,234△1,457△5,898

4,248△5,978△1480

(3) Consolidated Statements of Changes in Net Assets
Previous consolidated fiscal year (April 1, 2018 - March 31, 2019)(Million yen)
Shareholders’ equity
Share capital
Balance at the beginning of year

Capital surplus

20,983Retained earnings

18,652

Total shareholders’equityTreasury shares

63,302(1,734)

101,203

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

Profit attributable to owners ofparent

7,114

7,114

Purchase of treasury shares

(5)

(5)

Disposal of treasury shares

31

31

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

(45)

(45)

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

–

(45)

5,229

25

5,209

20,98318,606

68,532(1,708)106,413

Accumulated other comprehensive income

Balance at the beginning of year

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedgesForeigncurrencytranslation
adjustment

7,970

(9)

31

Total
Remeasurements accumulatedof definedotherbenefit planscomprehensive
income
(235)

7,756

Noncontrollinginterests

Total net assets

899

109,859

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

Profit attributable to owners ofparent7,114

Purchase of treasury shares(5)

Disposal of treasury shares

31

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

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

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

Total changes of items during
period

(1,685)

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

157

2,502

Balance at the end of year

6,284

(5)

(1,023)

(365)

4,890

1,057

112,362– 11 –

Consolidated fiscal year under review (April 1, 2019 - March 31, 2020)(Million yen)
Shareholders’ equity
Share capital
Balance at the beginning of year

Capital surplus

20,983Retained earnings

18,606

Total shareholders’equityTreasury shares

68,532(1,708)106,413

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

Profit attributable to owners ofparent(4,497)(4,497)Purchase of treasury shares
Disposal of treasury shares

(0)

(3)

(3)

0

0

Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at the end of year–

(0)

(7,088)(2)(7,090)20,98318,60661,444(1,711)

99,323

Accumulated other comprehensive income

Balance at the beginning of year

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedgesForeigncurrencytranslation
adjustment

6,284

(5)

(1,023)Total
Remeasurements accumulatedof definedotherbenefit planscomprehensive
income
(365)

4,890

Noncontrollinginterests

Total net assets

1,057

112,362

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

Profit attributable to owners ofparent(4,497)Purchase of treasury shares(3)

Disposal of treasury shares

0Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes of items other thanshareholders’ equity

(843)

0

(377)

(260)

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

(843)

0

(377)

(260)

(1,481)

10(8,561)

Balance at the end of year

5,440

(5)

(1,401)

(625)

3,409

1,068

103,800– 12 –

(4) Consolidated Cash Flow Statements(Millions of yen)
Fiscal year ended
March 31, 2019
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
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
Insurance claim income
Share of loss (profit) of entities accounted for using
equity method
Loss (gain) on sales of short-term and long-term
investment securities
Loss (gain) on valuation of short-term and 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
Increase/decrease in other assets/liabilities
SubtotalInterest and dividends received
Interest paid
Proceeds from insurance income
Income taxes paid
Net cash provided by (used in) operating activities– 13 –

Fiscal year ended
March 31, 2020

10,345
11,110
1,188
93

1,741
12,332
－
124

△28

△44

△8

13

123

△81

598
△817
669
△1,661

△361
△788
609
△53

△583

△1,727

0

△16

－

1,860

△2,273△146△3,303△4,6172,557
75
13,469
842
△730
1,661
△3,516
11,725

14,938
4,499△14,795
1,633
19,737825△626
53△3,784
16,206

(Millions of yen)
Fiscal year ended
March 31, 2019
Cash flows from investing activities
Net decrease (increase) in time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant andequipment
Purchase of investment securities
Proceeds from sales of investment securities
Loan advances
Collection of loans receivable
Purchase of intangible assets
Purchase of shares of subsidiaries resulting inchange in scope of consolidation
Other, net
Net cash provided by (used in) investing activities
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– 14 –

Fiscal year ended
March 31, 2020

110
△15,181△627△16,334

5,834

1,208

△35
0
△29
19
△440

△33
82
△29
26
△330

△11,043－△70△20,835△11△16,048

2,847
18,700△4,846
6,958△5,0000△765△50△1,882△69
15,936△6,5432,800△4,1289,929△5,0000△858△3
0△2,587△69△6,461

△303

△181

6,523
23,03629,560△6,48529,56023,075(5) Notes Regarding the Consolidated Financial Statements(Note related to going-concern assumption)
None(Segment information)
1. Summary of the reportable segments
The reportable segments of the Company are units constituting the Company that are to be regularly examined by the Board of
Directors to determine the allocation of management resources and evaluate the business results, as their financial information
is available separately from that of others.
The Company has business divisions by product and service, and each business division develops a comprehensive domestic
and overseas strategy for the products and services it offers in conducting its business activities.
Accordingly, the Company consists of segments by product and service based on the business divisions. There are threereportable segments: the Steel Business, the Automotive & Industrial Machinery Components Business and the PowerBusiness.
The Steel Business produces general section steel, deformed section steel, deformed bar steel and other steel products. The
Automotive & Industrial Machinery Component Business produces various wheels for automobiles, industrial vehicles andconstruction machinery, pressing products, components for construction machinery, industrial fasteners, etc. The PowerBusiness engages in the wholesale of electricity.
2. Method of calculating amounts of net sales, profits or losses, assets and other items by reportable segment
The accounting method for the business segments reported is the same as that stated in “Important basic matters for
preparation of the consolidated financial statements.” In addition, the profits of the reportable segments show operating profits.
The internal revenue and transfer between segments are based on the actual market price.

– 15 –

3. Information regarding amounts of net sales, profits or losses, assets and other items by reportable segment
Previous consolidated fiscal year (from April 1, 2018 to March 31, 2019)(Million yen)
Reportable segment

Steel

Automotive &Industrial
Machinery
Components

Power

Total

Others(Note) 1

Total

Amount ofadjustment(Note) 2

Amountrecorded intheconsolidated
financialstatements(Note) 3

Net sales
Net sales to outside
customers

80,442

188,175

10,567279,185

7,041

286,227–

286,227

Internal sales or transfer
between segments

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

Total

104,281

188,175

10,567303,024

7,041

310,065(23,838)

Profits of segment

2,248

7,833

1,228

11,3091,550

12,860(5,355)

7,505

Assets of segment

97,694

137,2445,902

240,841

16,122

256,963

27,235284,198

Depreciation

4,497

5,201

555

10,254312

10,567543

11,110

Increase in property, plantand equipment andintangible assets

6,505

16,251

745

23,503

1,208

24,711

389

25,100

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

– 16 –

Consolidated fiscal year under review (from April 1, 2019 to March 31, 2020)(Million yen)
Reportable segment

Steel

Automotive &Industrial
Machinery
Components

Power

Total

Others(Note) 1

Total

Amount ofadjustment(Note) 2

Amountrecorded intheconsolidated
financialstatements(Note) 3

Net sales
Net sales to outside
customers

73,404

174,015

9,326

256,746

6,558

263,305–

263,305

Internal sales or transfer
between segments

16,773––

16,773–

16,773(16,773)–
263,305

Total

90,177174,015

9,326

273,519

6,558

280,078(16,773)

Profits of segment

4,142

1,657

852

6,652

893

7,545

(4,693)

2,851

Assets of segment

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 in property, plantand equipment andintangible assets

4,987

7,844

47

12,87981

12,961436

13,397

Other items(Notes) 1. The category “Others” includes the business segments not included in the reportable segments such as synthetic mica,
crawler robots, indoor and outdoor sign systems, civil engineering and construction, the leasing of real estate and theoperation of the sports club.
2. The details of the adjustment are as explained below.
(1) Profits of segment in an amount of a loss of ¥4,693 million are common corporate expenses, etc. not allocated to
the respective reportable segments. The common corporate expenses are mainly the expenses related to theadministrative divisions of the Company that are not attributable to the reportable segments.
(2) Assets of segment in an amount of ¥20,841 million include the corporate assets of ¥24,492 million not allocated 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 the administrative divisions of theCompany 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.

– 17 –

(Information per share)Previous consolidated fiscal year
Consolidated fiscal year under review(from April 1, 2018 to March 31, 2019) (from April 1, 2019 to March 31, 2020)
Net assets per share

4,737.26 yen

4,372.66 yen

Profit (loss) per share

302.85 yen(191.42 yen)

(Notes) 1. Profit per share after full dilution is not stated because there are no dilutive shares.
2. In the calculation of net assets per share, the shares of the Company that are held by the trust related to the stockcompensation plan for directors, etc. are included in the treasury shares that are deducted from the total number ofshares issued and outstanding at the end of the fiscal year (52 thousand shares for the previous consolidated fiscal
year and 52 thousand shares for the consolidated fiscal year under review).
In addition, also in the calculation of profit (loss) per share, the said shares above are included in the treasury sharesthat are deducted in the calculation of the average number of shares during the fiscal year (58 thousand shares for theprevious consolidated fiscal year and 52 thousand shares for the consolidated fiscal year under review).
3. The bases for the calculation of profit (loss) per share are as shown below.
Previous consolidated fiscal year
Consolidated fiscal year under review(from April 1, 2018 to March 31, 2019) (from April 1, 2019 to March 31, 2020)
Profit (loss) attributable to owners ofparent (million yen)

7,114

(4,497)

Amount not attributable to commonshareholders (million yen)––

Profit (loss) attributable to owners ofparent in relation to common shares(million yen)

7,114

(4,497)

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

23,49023,494(Important events after the reporting period)
None(Additional Information)
Regarding Accounting Estimates due to effects of COVID-19
The effect of COVID-19 to the economy and cooperate 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 his consolidated fiscal year, the Group is
performing accounting estimations such as the collectability of deferred tax assets etc. under the assumption that effects of
COVID-19 will continue for a period during the next consolidated fiscal year.

– 18 –