Translation
Notice: This document is a translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy
between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended March 31, 2024
(Based on Japanese GAAP)May 15, 2024
Company name:

TODA KOGYO CORP.

Stock exchange listing: Tokyo
Stock code:
4100
Representative:
Inquiries:

URL https://www.todakogyo.co.jp

Representative Director
Department Manager of Corporate Planning

Department
Scheduled date of ordinary general meeting of shareholders:

Shigeru Takaragi
Atsushi Tomokawa

TEL +81-82-577-0055

June 26, 2024

Scheduled date to file Securities Report:
Scheduled date to commence dividend payments:

June 27, 2024–

Preparation of supplementary material on financial results:
Holding of financial results meeting:

Yes
Yes

(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2024 (from April 1, 2023 to March 31, 2024)(1) Consolidated operating results
Net sales
Millions of yen
26,23434,934

Year ended March 31, 2024
Year ended March 31, 2023
Note: Comprehensive income

Operating profit%(24.9)(1.1)

Year ended March 31, 2024:
Year ended March 31, 2023:
Earnings per share

Year ended March 31, 2024
Year ended March 31, 2023
Reference:

Millions of yen
117
1,367

%
(91.4)(45.7)¥(1,866) million¥4,089 million

Percentages indicate year-on-year changes
Profit attributable toOrdinary profit
owners of parent
Millions of yen% Millions of yen%
1,168 (65.1)(3,581)–
3,349 (20.0)
3,268
4.9
[–%]
[(15.0)%]

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen
%
%
%
–
(24.1)
2.2
0.4
562.48
23.1
6.5
3.9

Diluted earnings per
share

Yen
(620.00)
566.50Share of profit of entities accounted for using equity method
Year ended March 31, 2024:¥673 million
Year ended March 31, 2023:¥1,704 million(2) Consolidated financial position
Total assets
As of March 31, 2024
As of March 31, 2023
Reference:

EquityAs of March 31, 2024:
As of March 31, 2023:

Millions of yen
53,71452,016¥13,860 million¥15,842 million

Net assets
Millions of yen
14,525
16,559Equity ratio

Net assets per share
%
25.8
30.5

Yen
2,399.20
2,744.37

(3) Consolidated cash flows

Year ended March 31, 2024
Year ended March 31, 2023

Cash flows fromoperating activities
Millions of yen
(634)
833

Cash flows frominvesting activities
Millions of yen
(663)
(375)

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
407
7,943
187
8,476

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2023
Year ended March 31, 2024
Year ending March 31, 2025
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

–
–

0.00
0.00

–
–

0.00
0.00

0.00
0.00

–
–

–
–

–
–

–

0.00

–

0.00

0.00

–

3. Forecast of consolidated financial results for the year ending March 31, 2025 (from April 1, 2024 to March 31, 2025)
Percentages indicate year-on-year changes
Profit attributable to
Net sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Six months ending
15,40021.5
100–350 (64.0)
100 (87.5)
17.31
September 30, 2024
Full year
32,00022.0
700 497.2
1,100 (5.8)
600–
103.88* Notes(1) Changes in significant subsidiaries during the year ended March 31, 2024
(changes in specified subsidiaries resulting in the change in scope of consolidation):

Yes

Newly included: 1 company (TODA ISU CORPORATION)(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2024

6,099,192 shares As of March 31, 2023

6,099,192 shares

321,945 shares As of March 31, 2023

326,475 shares

Number of treasury shares at the end of the period
As of March 31, 2024
Average number of shares during the period
Year ended March 31, 2024

5,775,881 shares Year ended March 31, 2023

5,770,311 shares[Reference] Overview of non-consolidated financial results
1. Non-consolidated financial results for the year ended March 31, 2024 (from April 1, 2023 to March 31, 2024)(1) Non-consolidated operating results
Percentages indicate year-on-year changes
Net salesYear ended March 31, 2024
Year ended March 31, 2023

Millions of yen
15,431
16,636

Operating profit% Millions of yen(7.2)(1,552)
(2.3)
(168)

Earnings per share
Year ended March 31, 2024
Year ended March 31, 2023

Ordinary profit%––

Millions of yen
(75)
194

Profit% Millions of yen–(5,228)(84.2)
1,319%–(17.5)

Diluted earnings per shareYen(905.30)228.70Yen–
227.07(2) Non-consolidated financial position
Total assets
As of March 31, 2024
As of March 31, 2023
Reference:

EquityAs of March 31, 2024:
As of March 31, 2023:

Millions of yen
37,35041,446

Net assets
Millions of yen
5,910
10,416Equity ratio

Net assets per share
%
15.6
24.9

Yen
1,006.11
1,789.47¥5,812 million¥10,330 million* Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
* Proper use of earnings forecasts, and other special matters(Caution regarding forward-looking statements and others)
The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to theCompany and on certain assumptions deemed to be reasonable. Consequently, any statements herein do not constitute assurances regarding
actual results by the Company. Actual business and other results may differ substantially due to various factors. Please refer to the section of“(4) Future Outlook” of “1. Summary of Operating Results, Etc.” on page 2-3 of Attached Material for the suppositions that form theassumptions for earnings forecasts and cautions concerning the use thereof.
(Method of accessing supplementary material on financial results)
Supplementary material on financial results will be posted on the Company’s website on June 6, 2024.

Attached Material
Index
1. Summary of Operating Results, Etc. ................................................................................................................. 1(1) Summary of Operating Results for Fiscal Year Under Review................................................................... 1(2) Summary of Financial Position for Fiscal Year Under Review ................................................................... 2(3) Summary of Cash Flow for Fiscal Year Under Review ............................................................................... 2(4) Future Outlook ................................................................................................................................................ 2
2. Basic Approach to Selection of Accounting Standards.................................................................................... 3
3. Consolidated Financial Statements and Significant Notes Thereto................................................................ 4(1) Consolidated Balance Sheets........................................................................................................................... 4(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ............... 6
Consolidated Statements of Income ............................................................................................................... 6
Consolidated Statements of Comprehensive Income.................................................................................... 8(3) Consolidated Statements of Changes in Equity ............................................................................................ 9(4) Consolidated Statements of Cash Flows ...................................................................................................... 11(5) Notes on Consolidated Financial Statements .............................................................................................. 13(Notes on Assumptions of Going Concern).................................................................................................. 13(Change in Scope of Application of Equity Method and Scope of Consolidation)................................... 13(Segment Information, Etc.) ......................................................................................................................... 13(Per-Share Information) ............................................................................................................................... 16(Significant Subsequent Events) ................................................................................................................... 17

1. Summary of Operating Results, Etc.
(1) Summary of Operating Results for Fiscal Year Under Review
In the business environment surrounding the TODA KOGYO Group (the “Group”) during the fiscal year
ended March 31, 2024 (the “fiscal year under review”), there was a moderate recovery trend in the economy
due to a pickup in personal consumption and improved employment conditions against the backdrop of
normalization of socioeconomic activity as a result of the recovery from the COVID-19 pandemic. On theother hand, the economic outlook remains uncertain mainly due to the protracted situation in Ukraine,heightened geopolitical risks surrounding the Middle East, monetary tightening in response to soaring prices invarious countries, and the slowdown of the Chinese economy.
Under these circumstances, the Group has been striving to grow and expand each of its businesses to achieve
the goals of its medium-term business plan Vision 2023. The Company has also concentrated on measures suchas product pricing correction activities, continuous cost reduction activities, and expense reduction as
initiatives to improve profitability.
However, net sales and operating profit for the fiscal year under review fell year on year mainly due tofluctuations in demand in the functional pigments segment and electronic materials segment and the transfer of
equity in Toda United Industrial (Zhejiang) Co., Ltd. in the previous fiscal year. Toda United Industrial(Zhejiang) Co., Ltd.’s net sales recorded in the consolidated statement of income for the previous fiscal year
were ¥5,352 million and its operating profit was ¥470 million.
For non-operating income and expenses, despite the Company having encountered factors with a positiveeffect on earnings such as a shift in exchange rates to a weakening yen, revenues from associates accounted forusing the equity method declined. Moreover, in extraordinary income and losses, in the previous fiscal year theCompany recorded gain on sale of investments in capital of subsidiaries and associates of ¥933 million due tothe transfer of its shareholding in Toda United Industrial (Zhejiang) Co., Ltd., while in the fiscal year underreview, it recorded impairment losses of ¥4,869 million due to impairment of business assets and assets forcommon use, etc. held by the Company.
As a result of the above, net sales came to ¥26,234 million (down 24.9% year on year), operating profit cameto ¥117 million (down 91.4% year on year), ordinary profit came to ¥1,168 million (down 65.1% year on year),and loss attributable to owners of parent came to ¥3,581 million (compared to profit attributable to owners ofparent of ¥3,268 million in the previous fiscal year).
The status of each segment is as follows.
Functional pigments
Sales of materials for copiers and printers and materials for catalysts were affected by a delayed recovery indemand in the market. As a result of having transferred equity in Toda United Industrial (Zhejiang) Co., Ltd. in
the previous fiscal year and other factors, net sales were ¥8,124 million, a decline of 44.8% year on year, andsegment profit was ¥838 million, a decline of 58.1% year on year.
Electronic materials
Demand for both magnet materials and dielectric materials is gradually recovering from the second half of the
fiscal year, despite the impact of inventory adjustments in the first half of the fiscal year due to delayed market
recovery and other factors. In particular, net sales increased from the previous fiscal year for bonded rare earthmagnet material, which possesses world-class magnetic properties, mainly for automotive applications.
However, net sales for the segment came to ¥18,569 million, a decrease of 10.1% year on year, mainly affectedby fluctuations in demand at the Company’s consolidated subsidiary that manufactures lithium ion battery(LIB) materials. On the other hand, segment profit came to ¥2,560 million, an increase of 7.2% year on year,
mainly due to the effects of product pricing correction activities.

1(2) Summary of Financial Position for Fiscal Year Under Review
AssetsAssets at the end of the fiscal year under review came to ¥53,714 million, an increase of ¥1,698 million overthe end of the previous fiscal year. This was mainly due to increases of ¥1,105 million in notes and accounts
receivable - trade, ¥1,064 million in raw materials and supplies, and ¥1,716 million in investments in capital ofsubsidiaries and associates, despite a decrease of ¥2,655 million in property, plant and equipment.
Liabilities
Liabilities at the end of the fiscal year under review came to ¥39,189 million, an increase of ¥3,733 million
over the end of the previous fiscal year. This was mainly due to increases of ¥1,586 million in borrowings and¥2,216 million in other current assets.
Net assets
Net assets at the end of the fiscal year under review came to ¥14,525 million, a decrease of ¥2,034 million overthe end of the previous fiscal year. This was mainly due to recording a loss attributable to owners of parent of¥3,581 million, despite increases of ¥701 million in valuation difference on available-for-sale securities and¥648 million in foreign currency translation adjustment.
As a result of the above, net assets per share decreased by ¥345.17 year on year to ¥2,399.20 and the equity
ratio decreased by 4.7 points year on year to 25.8%.
(3) Summary of Cash Flow for Fiscal Year Under Review
Cash and cash equivalents (“cash”) at the end of the fiscal year under review came to ¥7,943 million, adecrease of ¥533 million over the end of the previous fiscal year.
The status of each cash flow in the fiscal year under review is as follows.
Cash flows from operating activities
Net cash used in operating activities totaled ¥634 million (compared to ¥833 million provided in the previous
fiscal year). This was mainly due to a decrease of ¥819 million in trade payables and income taxes paid of¥423 million.
Cash flows from investing activities
Net cash used in investing activities came to ¥663 million (compared to ¥375 million used in the previous
fiscal year). This was mainly due to a decrease in cash resulting primarily from ¥249 million in payments forinvestments in shares of subsidiaries and associates and ¥1,381 million in purchase of property, plant andequipment, which exceeded the increase in cash largely resulting from ¥1,020 million in proceeds fromcollection of loans receivable.
Cash flows from financing activities
Net cash provided by financing activities came to ¥407 million (¥187 million in the previous fiscal year). Thiswas mainly due to an increase in cash largely resulting from ¥4,560 million in proceeds from long-termborrowings and ¥1,852 million in proceeds from other financial liabilities, which exceeded a decrease in cash
largely resulting from ¥4,402 million in repayments of long-term loans payable and others and ¥1,542 million
in the purchase of shares of subsidiaries not resulting in change in scope of consolidation.
(4) Future Outlook
Regarding the future economic outlook, the uncertain situation is expected to continue for the time being
mainly due to the rising geopolitical risks surrounding the situation in Ukraine and the Middle East, the risk ofa downturn in overseas economies due to continued monetary tightening in various countries, and theslowdown of the Chinese economy.
To achieve the vision the Group for the fiscal year ending March 31, 2031 (fiscal 2030), set out in its
materiality, the Group has formulated a medium-term management plan, Vision2026, covering the period fromthe fiscal year ending March 31, 2025 (fiscal 2024) to the fiscal year ending March 31, 2027 (fiscal 2026).
During this period, the company will strengthen its business portfolio management. It will promote (1)business strategies, (2) financial strategies, and (3) human resource strategies for accelerating selection andconcentration aimed at achieving the plan.

2

Under these conditions, in the fiscal year ending March 31, 2025, despite continued high prices for raw
materials and energy, the Company expects to see a gradual recovery in market demand for both the functional
pigments segment and the electronic materials segment. The Company also expects the conversion of TODA
ISU CORPORATION into a consolidated subsidiary to contribute to increases in net sales and operating profit.
Based on such conditions, for its consolidated operating results forecast for the fiscal year ending March 31,
2025, the Group is forecasting net sales of ¥32,000 million, operating profit of ¥700 million, ordinary profit of¥1,100 million, and profit attributable to owners of parent of ¥600 million.

2. Basic Approach to Selection of Accounting Standards
Considering the possibility of comparing financial periods and making company-to-company comparisons on
consolidated financial statements, the Group’s policy for the time being will be to prepare consolidated
financial statements based on Japanese standards. Note that the policy of the Group with respect to theapplication of International Financial Reporting Standards (IFRS) is to comply with them appropriately after
taking various domestic and overseas circumstances into consideration.

33. Consolidated Financial Statements and Significant Notes Thereto(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2023

As of March 31, 2024

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

8,476
7,607

8,164
8,712

Merchandise and finished goods
Work in process

4,581
2,018

4,662
2,476

Raw materials and supplies
Other

3,654
2,136

4,718
1,587

(9)

(11)

28,46530,309Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net

1,975

1,583

Machinery, equipment and vehicles, net
Land

1,687
6,326

1,686
4,887

Construction in progress
Other, net

1,019
508

210
492

Total property, plant and equipment

11,515

8,860

2,355

2,497

133

13

2,489

2,510

2,709
6,300

3,290
8,016

Long-term loans receivable
Retirement benefit asset

5
369

4
553

Other
Allowance for doubtful accounts

164
(3)

170
(3)

Total investments and other assets

9,545

12,03323,55023,40452,01653,714

Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Investments in capital of subsidiaries and associates

Total non-current assets
Total assets

4

(Millions of yen)
As of March 31, 2023

As of March 31, 2024

Liabilities
Current liabilities
Notes and accounts payable - trade

3,712

3,507

Short-term borrowings

7,686

9,113

Current portion of long-term borrowings

4,012

4,712

Income taxes payable

230

148

Provision for bonuses

345

314

Other

1,616

3,832

Total current liabilities

17,604

21,62914,031

13,490Non-current liabilities
Long-term borrowings
Long-term accounts payable - other

469

112

1,896

2,342

Deferred tax liabilities

985

1,427

Other

468

186

17,852

17,55935,45639,189

Share capital

7,477

7,477

Capital surplus

4,288

4,306

Retained earnings

3,155

(425)

Treasury shares(1,468)(1,447)

Total shareholders’ equity

13,453

9,910

688

1,389

Foreign currency translation adjustment

1,368

2,016

Remeasurements of defined benefit plans

332

543

2,389

3,950

86

97

Retirement benefit liability

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

5

630

567

16,55914,52552,01653,714

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Millions of yen)
Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024

Net sales
Cost of sales

34,93427,477

26,234
20,368Gross profit

7,457

5,865

Selling, general and administrative expenses
Freight-out

813

417

Employees’ salaries and allowances
Provision for bonuses

1,403
104

1,338
77

95
150

102
112

Research and development expenses
Other

1,315
2,207

1,514
2,185

Total selling, general and administrative expenses

6,090

5,748

1,367

117

Non-operating income
Interest income

4570Dividend income
Rental income

58
39

64
40

224
1,704

447
673

200

106

2,273

1,403

Interest expenses
Miscellaneous losses

265
25

321
30

Total non-operating expenses

291

352

3,349

1,168

Gain on disposal of non-current assets
Gain on change in equity

4
60

17
–

Gain on sale of investments in capital of subsidiaries andassociates

933–

Gain on liquidation of subsidiaries and associates
Gain on sale of investment securities

52
–

–
76

Gain on step acquisitions
National subsidies

–
32

475
23

Compensation income
Reversal of provision for environmental measures

54
74

187
–

1,212

780

Retirement benefit expenses
Depreciation

Operating profit

Foreign exchange gains
Share of profit of entities accounted for using equity method
Miscellaneous income
Total non-operating income
Non-operating expenses

Ordinary profit
Extraordinary income

Total extraordinary income6

(Millions of yen)

Extraordinary losses
Loss on disposal of non-current assets

Fiscal year ended

Fiscal year ended

March 31, 2023

March 31, 2024
95

64

Loss on tax purpose reduction entry of non-current assets
Impairment losses

7
35

–
4,869

Compensation expenses
Other

76
–

–
0

Total extraordinary losses

214

4,934

Profit (loss) before income taxes

4,347(2,985)

Income taxes - current

546

345

Income taxes - deferred

36

133

Total income taxes

582

479

3,765

(3,464)

Profit attributable to non-controlling interests

496

116

Profit (loss) attributable to owners of parent

3,268(3,581)

Profit (loss)

7

Consolidated Statements of Comprehensive Income(Millions of yen)
Fiscal year ended
March 31, 2023
Profit (loss)

Fiscal year ended
March 31, 2024
3,765

(3,464)

Other comprehensive income
Valuation difference on available-for-sale securities

55

701

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

122
73

505
211

Share of other comprehensive income of entities accounted
for using equity method

72

180

Total other comprehensive income

324

1,598

4,089

(1,866)3,445(2,020)643

153Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests8

(3) Consolidated Statements of Changes in Equity
Fiscal year ended March 31, 2023
(Millions of yen)
Shareholders’ equity
Share capital
Balance at beginning of
periodCapital surplus

7,477

Retained earnings

4,358

Total shareholders’equityTreasury shares(112)(1,507)

10,215

Changes during period
Profit (loss) attributable toowners of parent

3,268

3,268

Purchase of treasury shares
Disposal of treasury shares

(17)

Other

(51)

(2)

(2)

40

23
(51)

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

–

(69)

3,268

38

3,238

7,477

4,288

3,155

(1,468)13,453

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of
period633

Foreigncurrencytranslation
adjustment
1,320

Total
accumulatedof defined benefit
other
plans
comprehensive
incomeRemeasurements

258

2,211

Share
acquisitionrights88

Non-controllinginterests

Total net assets

1,443

13,958Changes during period
Profit (loss) attributable toowners of parent

3,268

Purchase of treasury shares(2)

Disposal of treasury shares

23

Other

(51)

Net changes in items otherthan shareholders’ equity

54

48

73

177

(1)

(812)

(637)

Total changes during period

54

48

73

177

(1)

(812)

2,600

Balance at end of period

688

1,368

332

2,389

86

630

16,5599

Fiscal year ended March 31, 2024
(Millions of yen)
Shareholders’ equity
Share capital
Balance at beginning of
periodCapital surplus

7,477

Retained earnings

4,288

Total shareholders’equityTreasury shares

3,155(1,468)13,453

Changes during period
Profit (loss) attributable toowners of parent(3,581)

Change in ownershipinterest of parent due totransactions with noncontrolling interests(3,581)28

28

Purchase of treasury shares
Disposal of treasury shares

(11)

(0)

(0)

21

10

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

17(3,581)20(3,542)

7,477

4,306

(425)

(1,447)

9,910

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of
period688

Foreigncurrencytranslation
adjustment
1,368

Total
accumulatedof defined benefit
other
plans
comprehensive
incomeRemeasurements

332

2,389

Share
acquisitionrights86

Non-controllinginterests

Total net assets

630

16,559Changes during period
Profit (loss) attributable toowners of parent(3,581)

Change in ownershipinterest of parent due totransactions with noncontrolling interests

28

Purchase of treasury shares(0)

Disposal of treasury shares

10

Net changes in items otherthan shareholders’ equity

701

648

211

1,560

10

(63)

1,508

Total changes during period

701

648

211

1,560

10

(63)

(2,034)

Balance at end of period

1,389

2,016

543

3,950

97

567

14,52510

(4) Consolidated Statements of Cash Flows(Millions of yen)
Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024

Cash flows from operating activities
Profit (loss) before income taxes
Depreciation

4,347
685

(2,985)802

Impairment losses
Amortization of goodwill

35
315

4,869
383

Increase (decrease) in provision for environmental measures
Increase (decrease) in provision for loss on factory closings

(74)
(12)

–
–

Increase (decrease) in provision and allowance
Decrease (increase) in retirement benefit asset

52
(11)

(29)
10

Increase (decrease) in retirement benefit liability
Interest and dividend income

(119)
(103)

(147)
(135)

Interest expenses
Loss (gain) on sales of investment in capital of subsidiaries

265

321

(933)

–

(112)

(364)

(1,704)(673)

Loss (gain) on change in equity
Loss (gain) on step acquisitions

(60)
–

–
(475)

Loss (gain) on disposal of non-current assets
Decrease (increase) in trade receivables

90
1,375

47
(122)

Decrease (increase) in inventories
Increase (decrease) in trade payables(1,547)
(164)

(84)
(819)

Subsidy income
Compensation expenses

(32)
76

(23)
–

Gain on liquidation of subsidiaries and associates
Other, net

(52)
(876)

–
(783)

Subtotal

1,438

(210)

(7)

–

Income taxes refund (paid)

(597)

(423)

Net cash provided by (used in) operating activities

833

(634)

Interest and dividends received
Proceeds from the sale of investments in capital of

104

212

subsidiaries and associates resulting in change in scope of
consolidation

731

–

–

(249)

(1,738)4(1,381)
17

Purchase of intangible assets
Net decrease (increase) in time deposits

(32)
(62)

(88)
(219)

Proceeds from collection of loans receivable
Subsidies received

681
32

1,020
23

Proceeds from refund of leasehold and guarantee deposits
Other, net

2
(99)

–
2

Net cash provided by (used in) investing activities

(375)

(663)

and associates
Foreign exchange losses (gains)Share of loss (profit) of entities accounted for using equity
methodPayments of retirement benefits for directors (and otherofficers)

Cash flows from investing activities

Payments for investments in shares of subsidiaries andassociates
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment

11

(Millions of yen)
Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings

(664)
5,730

389
4,560

Repayments of long-term loans payable and others
Interest paid

(3,746)(265)(4,402)(321)

Proceeds from sale of treasury shares
Purchase of treasury shares

0
(2)

0
(0)

Dividends paid to non-controlling interests
Purchase of shares of subsidiaries not resulting in change in

(20)

–

(814)

(1,542)scope of consolidation
Proceeds from other financial liabilities

–

1,852

Repayments of other financial liabilities
Other, net

–
(29)

(80)
(44)

Net cash provided by (used in) financing activities

187

407

Effect of exchange rate change on cash and cash equivalents

303

285

Net increase (decrease) in cash and cash equivalents

949

(604)

Cash and cash equivalents at beginning of period

7,527

8,476

–

71

8,476

7,943

Increase (decrease) in cash and cash equivalents resulting fromchange in scope of consolidation
Cash and cash equivalents at end of period12(5) Notes on Consolidated Financial Statements(Notes on Assumptions of Going Concern)
Not applicable(Change in Scope of Application of Equity Method and Scope of Consolidation)
Significant changes in scope of consolidation
During the fiscal year ended March 31, 2024, the Company acquired a majority of the total voting rights of
TODA ISU CORPORATION, which had been an associate accounted for using the equity method, throughthe conversion of class shares held by the Company into common shares. As a result, the said company andone of its subsidiaries were included in the scope of consolidation. Since the Group has established December
31, 2023 as the deemed acquisition date, only the said company’s balance sheet as of December 31, 2023 is
consolidated for the fiscal year ended March 31, 2024, and the said company’s operating results are notincluded in the consolidated statement of income.
These changes in the scope of consolidation are expected to cause material effects to the consolidated
financial statements for the following fiscal year. Expected effects include an increase of total assets in the
consolidated balance sheet, and an increase of net sales in the consolidated statement of income.
(Segment Information, Etc.)[Segment information]
1. Summary of reportable segments
The reportable segments of the Group are constituent units of the Group for which separate financial
information can be obtained and are subject to examination on a regular basis by the Board of Directors inorder to decide on the allocation of management resources and evaluate operating results. The Group
categorizes its reportable segments based on product groupings after taking into consideration
manufacturing methods and process as well as similarities in the markets of sale. It has therefore categorized
its reportable segments into the two segments of “functional pigments” and “electronic materials.”
The main products under each reportable segment are as follows.
(1) Functional pigments: Magnetic powder materials and various coloring materials(2) Electronic materials: Ferrite materials, cathode materials for lithium ion batteries, PVC stabilizers,etc.
2. Computation methods for amounts of net sales, profit or losses, assets and other items for each reportablesegment
Accounting treatment for reportable segments is the same as that given in The Material Particulars That
Serve as the Basis for Preparation of Consolidated Financial Statements.
Figures for profit in reportable segments are on an operating profit basis.
Inter-segment revenues and transfers are based on prevailing market prices.

13

3. Information regarding amounts of net sales, profit or losses, assets and other items for each reportablesegment
Fiscal year ended March 31, 2023
Reportable segments

Net sales
Net sales to external customers
Inter-segment net sales ortransfers
Total
Segment profit
Segment assets
Other items
Depreciation
Changes in property, plant andequipment or intangible assets

Adjustments(Note 1)

Total

(Millions of yen)Amountposted on
consolidated
financialstatements(Note 2)Functional
pigments

Electronicmaterials

14,723

20,21034,934–34,934

6

442

448

(448)

–

14,7302,001
10,613

20,653
2,389
19,08935,383
4,391
29,703(448)(3,023)22,31334,934
1,367
52,016

244

284

528

156

685

414

670

1,084

718

1,802

Notes: 1

Adjustments are as follows.
(1) The adjustment of negative ¥3,023 million to segment profit includes corporate expenses of negative ¥3,023
million not allocated to either reportable segment. Corporate expenses mainly consist of general andadministrative expenses that do not belong to the reportable segments.
(2) The adjustment to segment assets consists of corporate assets. Corporate assets mainly consist of financial assetsof the Group (cash and deposits, investment securities, etc.) and assets pertaining to administrative departmentsthat do not belong to the reportable segments.
(3) The adjustment to depreciation consists of depreciation on assets that do not belong to the reportable segments.
(4) The adjustment increase in property, plant and equipment and intangible assets consists of increases to assetsthat do not belong to the reportable segments.
2 For segment profit, the Group has adjusted operating profit on its consolidated statement of income.

14

Fiscal year ended March 31, 2024
Reportable segments

Net sales
Net sales to external customers
Inter-segment net sales ortransfers
Total
Segment profit
Segment assets
Other items
Depreciation
Changes in property, plant andequipment or intangible assets

Adjustments(Note 1)

Total

(Millions of yen)Amountposted on
consolidated
financialstatements(Note 2)Functional
pigments

Electronicmaterials

8,119

18,11526,234–

26,234

5

453

459

(459)

–

8,124
838
8,368

18,5692,560
22,57826,694
3,398
30,946(459)(3,281)
22,767

26,234
117
53,714

187

330

517

285

802

780

751

1,532

287

1,819

Notes: 1

Adjustments are as follows.
(1) The adjustment of negative ¥3,281 million to segment profit includes corporate expenses of negative ¥3,281
million not allocated to either reportable segment. Corporate expenses mainly consist of general andadministrative expenses that do not belong to the reportable segments.
(2) The adjustment to segment assets consists of corporate assets. Corporate assets mainly consist of financial assetsof the Group (cash and deposits, investment securities, etc.) and assets pertaining to administrative departmentsthat do not belong to the reportable segments.
(3) The adjustment to depreciation consists of depreciation on assets that do not belong to the reportable segments.
(4) The adjustment increase in property, plant and equipment and intangible assets consists of increases to assetsthat do not belong to the reportable segments.
2 For segment profit, the Group has adjusted operating profit on its consolidated statement of income.

15

(Per-Share Information)
Fiscal year ended March 31,
2023
Net assets per share (Yen)

Fiscal year ended March 31,
2024

2,744.37

2,399.20

Earnings (loss) per share (Yen)

566.50(620.00)

Diluted earnings per share (Yen)

562.48–Notes:

1.
2.

Diluted earnings per share for the fiscal year ended March 31, 2024 has not been stated due to constituting net losses
per share despite the presence of dilutive shares.
The basis of computation for earnings per share or net loss per share and diluted earnings per share is as follows.
Fiscal year ended March 31,
2023

Fiscal year ended March 31,
2024

Earnings (loss) per share
Profit (loss) attributable to owners of parent(Millions of yen)Amount not attributable to common shareholders(Millions of yen)
Profit (loss) attributable to owners of parent
pertaining to common shares (Millions of yen)
Average number of common shares during theperiod (Thousands of shares)

3,268(3,581)

–

–

3,268

(3,581)

5,770

5,775

–

–

41

–

(41)

(–)

Diluted earnings per share
Adjustment to profit attributable to owners of parent(Millions of yen)
Increased number of common shares (Thousands ofshares)[Number of which are share acquisition rights(Thousands of shares)]

Overview of dilutive shares not included in thecalculation of diluted earnings per share due to not
being potentially dilutive–

16

2nd Share Acquisition Rights
based on resolution of Boardof Directors held on June 26,
2015
Number of share acquisitionrights: 142(common shares: 1,420
shares)3rd Share Acquisition Rights
based on resolution of Boardof Directors held on June 29,
2016
Number of share acquisitionrights: 173(common shares: 1,730
shares)
4th Share Acquisition Rights
based on resolution of Boardof Directors held on June 28,
2017
Number of share acquisitionrights: 186(common shares: 1,860
shares)
5th Share Acquisition Rights
based on resolution of Boardof Directors held on June 27,
2018
Number of share acquisitionrights: 181(common shares: 1,810
shares)
6th Share Acquisition Rights
based on resolution of BoardFiscal year ended March 31,2023(Significant Subsequent Events)
Not applicable

17

Fiscal year ended March 31,
2024
of Directors held on June 25,
2019
Number of share acquisitionrights: 263(common shares: 2,630
shares)7th Share Acquisition Rights
based on resolution of Boardof Directors held on June 25,
2020
Number of share acquisitionrights: 895(common shares: 8,950
shares)8th Share Acquisition Rights
based on resolution of Boardof Directors held on June 25,
2021
Number of share acquisitionrights: 946(common shares: 9,460
shares)9th Share Acquisition Rights
based on resolution of Boardof Directors held on June 28,
2022
Number of share acquisitionrights: 720(common shares: 7,200
shares)10th Share Acquisition Rights
based on resolution of Boardof Directors held on June 28,
2023
Number of share acquisitionrights: 981(common shares: 9,810
shares)