Translation
Notice: This document is an excerpt 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, 2023
(Based on Japanese GAAP)May 15, 2023
Company name:Titan Kogyo,Ltd.

Stock exchange listing: Tokyo
Stock code:
4098
Representative:
Inquiries:

URL

http://www.titankogyo.co.jp

President
DirectorYasuo Inoue
Atsushi Nishida

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 29, 2023
June 29, 2023

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

June 30, 2023
Yes

Holding of financial results meeting:

NoTEL

0836-31-4155(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profitOrdinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended March 31, 2023
8,070
(1.0)
385
3.3
341
18.5
322
21.7
Year ended March 31, 2022
8,149
29.7
373
–
287
–
265
–

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%–
5.0
2.1
4.8
–
4.3
1.8
4.6

Diluted earnings pershare

Yen
109.05
88.14

Year ended March 31, 2023
Year ended March 31, 2022
(2) Consolidated financial positionTotal assets
As of March 31, 2023
As of March 31, 2022

Net assets

Equity ratio

Millions of yen
16,756
16,372Millions of yen
7,099
6,737

Cash flows fromoperating activities
Millions of yen
(204)
687

Cash flows frominvesting activities
Millions of yen(180)(3,453)

Net assets per share%
39.9
38.7

Yen
2,254.19
2,132.33(3) Consolidated cash flows

Year ended March 31, 2023
Year ended March 31, 2022

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen216
382
2,740
551

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

Year ended March 31, 2022
Year ended March 31, 2023
Year ending March 31, 2024
(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

–
–

18.00
20.00

18.00
20.00

53
59

20.4
18.3

0.9
0.9

–

0.00

–

20.00

20.00

139.5

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)
Net sales
Millions of yen
Six months ending
September 30, 2023
Full year

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%
Yen

4,300

10.4

50(76.9)40(78.4)

10(93.7)

3.38

9,800

21.4

300

(22.1)

270(20.8)150(53.6)

50.64

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(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, 2023

3,027,626 shares As of March 31, 2022

3,027,626 shares

65,272 shares As of March 31, 2022

56,793 shares

2,961,348 shares Year ended March 31, 2022

3,010,855 shares

Number of treasury shares at the end of the period
As of March 31, 2023
Average number of shares during the period
Year ended March 31, 2023

2

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2022

As of March 31, 2023

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade561
1,529402
1,463Electronically recorded monetary claims - operating
Merchandise and finished goods

798
2,631

439
3,277

873
577

1,158
1,106

Work in process
Raw materials and supplies
Other

23

28

6,996

7,875

3,604

3,426

4,349
231

3,851
231

10
141

9
111

8,338

7,630

18

12

Investment securities
Deferred tax assets

826
50

945
164

Other
Allowance for doubtful accounts

144
(1)

129
(1)

Total investments and other assets

1,020

1,237

9,376

8,881

16,372

16,756

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2022

As of March 31, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade

699

660

285
2,350

295
3,150

Current portion of long-term borrowings
Income taxes payable

506
67

552
31

Provision for bonuses
Provision for business restructuring

162–

162
35

Asset retirement obligations
Other–71014460

Total current liabilities

4,783

5,363

Non-current liabilities
Long-term borrowings

4,264

3,711

Retirement benefit liability
Asset retirement obligations

584
3578
4

Total non-current liabilities

4,852

4,293

9,635

9,656

Shareholders' equity
Share capital

3,443

3,443

Capital surplus
Retained earnings

402
2,287

402
2,556

Electronically recorded obligations - operating
Short-term borrowings

Total liabilities
Net assets

Treasury shares

(101)

(117)

Total shareholders' equity

6,031

6,284

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

251
99

333
102

Remeasurements of defined benefit plans

(48)

(43)

Total accumulated other comprehensive income

303

393

402

422

Accumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets

4

6,737

7,099

16,372

16,756

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Net sales

8,149

8,070

Cost of sales

6,6756,620

Gross profit

1,474

1,450

Selling, general and administrative expenses

1,101

1,064

373385

Operating profit
Non-operating income
Interest income

00

Dividend income
Share of profit of entities accounted for using equity method

16325–

Insurance claim income
Subsidies for employment adjustment

–
823
8

Other

119

Total non-operating income

4067

Interest expenses
Share of loss of entities accounted for using equity method

46–

43
1

Loss on suspension of production
Loss on disaster

10–

33
20

Non-operating expenses

Other70

12Total non-operating expenses

126

112

287

341

Gain on sale of non-current assets–

4Gain on sale of investment securities

2–

Total extraordinary income

24

Ordinary profit
Extraordinary incomeExtraordinary losses
Loss on retirement of non-current assets

618

Impairment losses
Business restructuring expenses

––

52
35

Total extraordinary losses

6106

Profit before income taxes

283

239

Income taxes - current
Income taxes - deferred

44(46)

33(137)

Total income taxes

(2)

(103)

Profit286

342

Profit attributable to non-controlling interests

20

19

Profit attributable to owners of parent

265

322

5

Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023
286

342

Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax

38
2282
4

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

46

3Total other comprehensive income

108

89

394

432

373

412

20

19

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of changes in equity
Fiscal year ended March 31, 2022
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning ofperiod

Capital surplus

3,443

Retained earnings
402

Total shareholders'equityTreasury shares

2,053

(32)

5,866

Changes during period
Dividends of surplus

(30)

(30)

Profit (loss) attributableto owners of parent

265

265

Purchase of treasury
shares

(76)

(76)

76

Disposal of treasury
shares(0)

Transfer of loss on
disposal of treasury
shares0(0)

––

234

(69)

165

3,443

402

2,287(101)

6,031

–

Net changes in items
other than shareholders'equityTotal changes during
periodBalance at end of period

Accumulated other comprehensive income

Balance at beginning of
periodValuation difference
on available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurements ofdefined benefit
plans

Total accumulated
othercomprehensive
income213

52(71)

194

Non-controllinginterests

381

Total net assets

6,442

Changes during period
Dividends of surplus(30)

Profit (loss) attributableto owners of parent265

Purchase of treasury
shares(76)

Disposal of treasury
shares6

Transfer of loss on
disposal of treasury
shares–Net changes in items
other than shareholders'equity

38

46

22

108

20

129

Total changes during
period

38

46

22108

20

294

Balance at end of period

25199(48)

303

402

6,737

7

Fiscal year ended March 31, 2023
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning ofperiod

Capital surplus

3,443

Retained earnings
402

Total shareholders'equity

Treasury shares

2,287

(101)

6,031

Changes during period
Dividends of surplus

(53)

(53)

Profit (loss) attributableto owners of parent

322

322

Purchase of treasury
shares
Disposal of treasury
shares(0)

Transfer of loss on
disposal of treasury
shares

0(23)

(23)

77(0)

–

Net changes in items
other than shareholders'equity–Total changes during
periodBalance at end of period

–

–

268

(15)

253

3,443

402

2,556

(117)

6,284

Accumulated other comprehensive income

Balance at beginning of
periodValuation difference
on available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurements ofdefined benefit
plans

Total accumulated
othercomprehensive
income251

99(48)

303

Non-controllinginterests

402

Total net assets

6,737

Changes during period
Dividends of surplus(53)

Profit (loss) attributableto owners of parent

322

Purchase of treasury
shares(23)

Disposal of treasury
shares7

Transfer of loss on
disposal of treasury
shares–Net changes in items
other than shareholders'equity

82

3489

19109

Total changes during
period

82

3489

19362

Balance at end of period

333

102(43)

393

422

7,099

8

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023
283

239

Depreciation
Impairment losses

853
–857
52

Increase (decrease) in retirement benefit liability
Retirement benefit expenses(35)
23(10)
(3)

0–

(0)
35

Interest and dividend income
Interest expenses

(16)
46

(26)
43

Share of loss (profit) of entities accounted for using equity
method(3)

1

Loss (gain) on sale of investment securities
Decrease (increase) in trade receivables

(2)
(612)

–426

Decrease (increase) in inventories
Increase (decrease) in trade payables

(719)
567

(1,459)(213)

Other, net

318

(65)

Subtotal

702

(122)

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for business restructuring

Interest and dividends received

35

26Interest paid
Income taxes paid

(42)
(8)

(44)
(64)

Net cash provided by (used in) operating activities

687

(204)

(10)

(20)

10(3,452)

10(185)

Proceeds from sale of property, plant and equipment
Purchase of investment securities

–(0)

13–

Proceeds from sale of investment securities
Proceeds from collection of loans receivable

51–
2

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment

Other, net(6)–(3,453)(180)

Proceeds from short-term borrowings
Repayments of short-term borrowings

–
(300)

800
–

Proceeds from long-term borrowings
Repayments of long-term borrowings

3,600(452)

–
(506)

(76)
(30)

(23)
(53)

2,740

216

(0)

(0)

Net increase (decrease) in cash and cash equivalents(25)(168)Cash and cash equivalents at beginning of period

576

551

Cash and cash equivalents at end of period

551

382

Net cash provided by (used in) investing activities
Cash flows from financing activities

Purchase of treasury shares
Dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

9