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, 2023
(Based on Japanese GAAP)May 15, 2023
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 28, 2023

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

June 29, 2023–

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, 2023 (from April 1, 2022 to March 31, 2023)(1) Consolidated operating results
Net sales
Millions of yen
34,93435,332

Year ended March 31, 2023
Year ended March 31, 2022
Note: Comprehensive income

Operating profit
%
(1.1)
–

Millions of yen
1,367
2,519

Year ended March 31, 2023:
Year ended March 31, 2022:
Earnings per share

Year ended March 31, 2023
Year ended March 31, 2022%
(45.7)–¥4,089 million¥4,810 million

Percentages indicate year-on-year changes
Profit attributable toOrdinary profit
owners of parent
Millions of yen% Millions of yen%
3,349 (20.0)
3,268
4.9
4,184
–
3,116
–
[(15.0)%][–%]

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen
%
%
%
562.4823.1
6.5
3.9
537.04
30.3
9.0
7.1

Diluted earnings per
share

Yen
566.50540.59Reference:

Share of profit of entities accounted for using equity method
Year ended March 31, 2023:¥1,704 million
Year ended March 31, 2022:¥1,520 million
Note: TODA KOGYO CORP. (the “Company”) has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29,
March 31, 2020) and relevant ASBJ regulations from the beginning of the previous fiscal year, and each figure for the fiscal year ended
March 31, 2022, is the figure after applying the accounting standard and relevant ASBJ regulations. The percentage change from theprevious fiscal year is not shown for net sales that are significantly impacted by the application of the accounting standard.
(2) Consolidated financial position
Total assets
As of March 31, 2023
As of March 31, 2022
Reference:

EquityAs of March 31, 2023:
As of March 31, 2022:

Millions of yen
52,016
51,292¥15,842 million¥12,427 million

Net assets
Millions of yen
16,55913,958Equity ratio

Net assets per share
%
30.5
24.2

Yen
2,744.37
2,155.82

(3) Consolidated cash flows

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

Cash flows fromoperating activities
Millions of yen
833
903

Cash flows frominvesting activities
Millions of yen(375)(1,138)Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
187
8,476
913
7,527

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

–
–

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, 2024 (from April 1, 2023 to March 31, 2024)
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
15,500 (17.4)
100 (91.4)
800 (65.0)500 (67.8)
86.65
September 30, 2023
Full year
32,000 (8.4)
900 (34.2)
2,000 (40.3)
1,400 (57.2)
242.62* 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:
Changes in accounting policies due to other reasons:

Yes
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(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

6,099,192 shares As of March 31, 2022

6,099,192 shares

326,475 shares As of March 31, 2022

334,712 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

5,770,311 shares Year ended March 31, 2022

5,764,281 shares[Reference] Overview of non-consolidated financial results
1. Non-consolidated financial results for the year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(1) Non-consolidated operating results
Percentages indicate year-on-year changes
Net salesYear ended March 31, 2023
Year ended March 31, 2022

Operating profit

Millions of yen
16,636
17,033% Millions of yen
(2.3)
(168)
–
833

Earnings per share
Year ended March 31, 2023
Year ended March 31, 2022

Ordinary profit%––

Millions of yen
194
1,231

Profit% Millions of yen(84.2)
1,319
–
1,598

%
(17.5)–

Diluted earnings per share

Yen
228.70277.35

Yen
227.07275.53

Note: The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and relevant
ASBJ regulations from the beginning of the previous fiscal year, and each figure for the fiscal year ended March 31, 2022, is the figure
after applying the accounting standard and relevant ASBJ regulations. The percentage change from the previous fiscal year is not shownfor net sales that are significantly impacted by the application of the accounting standard.
(2) Non-consolidated financial position
Total assets
As of March 31, 2023
As of March 31, 2022
Reference:

EquityAs of March 31, 2023:
As of March 31, 2022:

Millions of yen
41,446
38,647

Net assets
Millions of yen
10,4169,022

Equity ratio

Net assets per share
%
24.9
23.1

Yen
1,789.47
1,549.88¥10,330 million¥8,934 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 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, 2023.

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.................................................................... 1(3) Summary of Cash Flow for Fiscal Year Under Review ................................................................................ 2(4) Future Outlook................................................................................................................................................. 2
2. Basic Approach to Selection of Accounting Standards.................................................................................... 2
3. Consolidated Financial Statements and Significant Notes Thereto ................................................................ 3(1) Consolidated Balance Sheets........................................................................................................................... 3(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ............... 5
Consolidated Statements of Income ............................................................................................................... 5
Consolidated Statements of Comprehensive Income .................................................................................... 7(3) Consolidated Statements of Changes in Equity ............................................................................................ 8(4) Consolidated Statements of Cash Flows ...................................................................................................... 10(5) Notes on Consolidated Financial Statements .............................................................................................. 12(Notes on Assumptions of Going Concern) .................................................................................................. 12(Change in Scope of Application of Equity Method and Scope of Consolidation) ................................... 12(Changes in Accounting Policies).................................................................................................................. 12(Segment Information, Etc.) ......................................................................................................................... 12(Per-Share Information) ................................................................................................................................ 15(Significant Subsequent Events) ................................................................................................................... 15

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, 2023 (the “fiscal year under review”), there were signs of a gradual recovery in economic activity as
restrictions on movement due to the novel coronavirus (COVID-19) were relaxed and economic activity moved
toward normality. However, because of inflation stemming from increases in raw material and energy prices,supply constraints, the protracted war in Ukraine, and downturn in overseas economies as a result of tightermonetary policy throughout the world, the future continues to be unclear.
Under such conditions, sales fell year on year on account of a semiconductor shortage and weak demand for
ICT devices.
Turning to profit, operating profit and ordinary profit fell year on year as a result of the decline in sales and theimpact of surging prices for raw materials and energy as well as shipping costs. However, profit attributable toowners of parent for the fiscal year under review increased year on year from the transfer of shareholding in
Toda United Industrial (Zhejiang) Co., Ltd., a former consolidated subsidiary.
As a result of the above, net sales came to ¥34,934 million (down 1.1% year on year), operating profit came to¥1,367 million (down 45.7% year on year), ordinary profit came to ¥3,349 million (down 20.0% year on year),and profit attributable to owners of parent came to ¥3,268 million (up 4.9% year on year).
The status of each segment is as follows.
Functional pigments
During the third quarter, the Company transferred all of its shareholding in the consolidated subsidiary Toda
United Industrial (Zhejiang) Co., Ltd., but market demand remained firm as it was in the previous fiscal year,
which was particularly true for materials for copiers and printers, materials for coatings, and materials forcatalysts. As a result of the above, net sales came to ¥14,730 million, an increase of 8.6% year on year.
However, segment profit came to ¥2,001 million, a decrease of 5.8% year on year, as a result of high raw
material and energy prices and changes in the composition of sales.
Electronic materials
Net sales increased from the previous fiscal year for bonded rare earth magnet material, which possesses
world-class magnetic properties and are mainly for use in car motors. Jiangmen & Partner’s Magnetic ProductCo., Ltd., which became a subsidiary on August 13, 2021, contributed to earnings for the full fiscal year(included in the statement of income starting from the third quarter of the previous fiscal year). However, salesof such products as dielectric materials were flat, primarily because of inventory adjustments due to thesemiconductor shortage and weak demand for ICT devices. Because of this and high raw material and energy
prices, net sales were ¥20,653 million, a decline of 7.1% year on year, and segment profit was ¥2,389 million,a decline of 27.3% year on year.
(2) Summary of Financial Position for Fiscal Year Under Review
AssetsAssets at the end of the fiscal year under review came to ¥52,016 million, an increase of ¥724 million over theend of the previous fiscal year. This was mainly due to increases of ¥514 million in cash and deposits, ¥631
million in raw materials and supplies, ¥656 million in other current assets, ¥363 million in goodwill, and¥1,857 million in investments in capital of subsidiaries and associates, despite decreases of ¥2,917 million innotes and accounts receivable - trade and ¥1,022 million in long-term loans receivable.
Liabilities
Liabilities at the end of the fiscal year under review came to ¥35,456 million, a decrease of ¥1,877 million overthe end of the previous fiscal year. This was mainly due to decreases of ¥2,002 million in notes and accounts
payable - trade, ¥413 million in other current liabilities, and ¥471 million in long-term accounts payable other, despite an increase of ¥1,068 million in borrowings.

1

Net assets
Net assets at the end of the fiscal year under review came to ¥16,559 million, an increase of ¥2,601 million
over the end of the previous fiscal year. This was mainly due to ¥3,268 million in profit attributable to ownersof parent, despite a decrease of ¥813 million in non-controlling interests.
As a result of the above, net assets per share increased by ¥588.55 year on year to ¥2,744.37 and the equity
ratio increased by 6.3 points year on year to 30.5%.
(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 ¥8,476 million, an
increase of ¥949 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 provided by operating activities totaled ¥833 million (compared to ¥903 million provided in theprevious fiscal year). This was mainly due to an increase in cash largely resulting from ¥4,347 million in profit
before income taxes, which exceeded the decline in cash largely resulting from an increase in inventories of¥1,547 million and income taxes paid of ¥597 million.
Cash flows from investing activities
Net cash used in investing activities came to ¥375 million (compared to ¥1,138 million used in the previous
fiscal year). This was mainly due to a decrease in cash resulting primarily from ¥1,738 million in purchase ofproperty, plant and equipment, which exceeded the increase in cash largely resulting from ¥731 million inproceeds from sale of investment in capital of subsidiaries and associates resulting in change in scope of
consolidation and ¥681 million in proceeds from collection of loans receivable.
Cash flows from financing activities
Net cash provided by financing activities came to ¥187 million (¥913 million in the previous fiscal year). Thiswas mainly due to an increase in cash largely resulting from ¥5,730 million in proceeds from long-termborrowings, which exceeded a decrease in cash largely resulting from ¥664 million in a net decrease in shortterm borrowings, ¥3,746 million in repayments of long-term loans payable and others, ¥265 million in interest
paid, and ¥814 million in the purchase of shares of subsidiaries not resulting in change in scope of
consolidation(4) Future Outlook
Regarding the future economic outlook, it is expected that continuing high raw material and energy prices andconcerns about the risk of a deterioration in overseas economies as monetary policy is tightened throughout theworld will cause the situation to remain unclear for the time being.
In the business environment surrounding the Group, it is expected that market demand related to the functional
pigments business will remain firm and demand for the electronic materials business will gradually recover.
However, consolidated operating results for the fiscal year ending March 31, 2024, are forecast to fall short ofthose for the fiscal year ended March 31, 2023, because of not only concerns about continuing high raw
material and energy prices but also the transfer of the Company’s shareholding in the former consolidated
subsidiary Toda United Industrial (Zhejiang) Co., Ltd.
Based on such conditions, for its consolidated operating results forecast for the fiscal year ending March 31,
2024, the Group is forecasting net sales of ¥32,000 million, operating profit of ¥900 million, ordinary profit of¥2,000 million, and profit attributable to owners of parent of ¥1,400 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.

2

3. Consolidated Financial Statements and Significant Notes Thereto(1) 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 - trade

7,962
10,524

8,476
7,607

Merchandise and finished goods
Work in process

4,423
1,973

4,581
2,018

Raw materials and supplies
Other

3,023
1,480

3,654
2,136

(6)

(9)

29,381

28,465

2,324

1,975

1,707
6,320

1,687
6,326

224
783

1,019
508

11,361

11,515

1,992

2,355

154

133

2,147

2,489

Investment securities
Investments in capital of subsidiaries and associates

2,607
4,443

2,709
6,300

Long-term loans receivable
Retirement benefit asset

1,027
161

5
369

Other
Allowance for doubtful accounts

165
(3)

164
(3)

Total investments and other assets

8,401

9,545

21,91023,55051,29252,016

Allowance for doubtful accounts
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
Goodwill
Other
Total 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

5,714

3,712

8,601
3,278

7,686
4,012

Income taxes payable
Provision for bonuses

278
295

230
345

Provision for environmental measures
Provision for loss on factory closings

67
11

–
–

Other

2,029

1,616

Total current liabilities

20,276

17,604Long-term borrowings
Long-term accounts payable - other12,782940

14,031
469

Retirement benefit liability
Deferred tax liabilities

1,912
974

1,896
985

446

468

17,056

17,85237,33335,456

Share capital
Capital surplus

7,477
4,358

7,477
4,288

Retained earnings
Treasury shares(112)(1,507)3,155(1,468)

Total shareholders’ equity

10,215

13,453633

688

Foreign currency translation adjustment
Remeasurements of defined benefit plans

1,320
258

1,368
332

Total accumulated other comprehensive income

Short-term borrowings
Current portion of long-term borrowings

Non-current liabilities

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

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

2,211

2,389

Share acquisition rights
Non-controlling interests

88
1,443

86
630

Total net assets

13,95816,55951,29252,016

Total liabilities and net assets4(2) 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
Cost of sales

35,332
27,32834,93427,477Gross profit

8,003

7,457

Selling, general and administrative expenses
Freight-out

756

813

Employees’ salaries and allowances
Provision for bonuses

1,349
72

1,403
104

87
177

95
150

Research and development expenses
Other

1,258
1,783

1,315
2,207

Total selling, general and administrative expenses

5,484

6,090

2,519

1,367

Non-operating income
Interest income

4245

Dividend income
Rental income

40
38

58
39

151
1,520

224
1,704

20
155

–
200

1,969

2,273

Non-operating expenses
Interest expenses

206

265

Miscellaneous losses

97

25

Retirement benefit expenses
Depreciation

Operating profit

Foreign exchange gains
Share of profit of entities accounted for using equity method
Subsidies for employment adjustment
Miscellaneous income
Total non-operating income

Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on disposal of non-current assets
Gain on change in equity
Gain on sale of investments in capital of subsidiaries andassociates
Gain on liquidation of subsidiaries and associates

304

291

4,184

3,349

13

4

–

60

–

933

–

52

Gain on sale of investment securities
National subsidies

40
20

–
32

Compensation income
Reversal of provision for environmental measures

90
–

54
74

Total extraordinary income

165

1,212

5

(Millions of yen)

Extraordinary losses
Loss on disposal of non-current assets

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023
72

95

Loss on tax purpose reduction entry of non-current assets
Loss on sale of investment securities

16
4

7
–

Impairment losses
Loss on liquidation of subsidiaries

178
46

35
–

Compensation expenses–

76

Total extraordinary losses

318

214

Profit before income taxes

4,031

4,347

Income taxes - current
Income taxes - deferred

385
153

546
36

Total income taxes

538

582

3,492

3,765

376

496

3,116

3,268

ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

6

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

Fiscal year ended
March 31, 2023

Profit3,492

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

(146)

55

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

906
267

122
73

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

290

72

1,318

324

4,810

4,089

4,275

3,445

534

643

Total other comprehensive income
Comprehensive income

3,765

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests7

(3) Consolidated Statements of Changes in Equity
Fiscal year ended March 31, 2022
(Millions of yen)
Shareholders’ equity
Share capital
Balance at beginning of
periodCapital surplus

7,477

Retained earnings

4,344(3,224)

Cumulative effects ofchanges in accounting
policies

Total shareholders’equityTreasury shares(1,513)

7,083

(4)

Restated balance

7,477

4,344

(4)

(3,228)(1,513)

7,079

Changes during period
Profit attributable toowners of parent

3,116

3,116

Purchase of treasury shares
Disposal of treasury shares(4)

Change in ownershipinterest of parent due totransactions with noncontrolling interests

17

(2)

(2)

8

4

17

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

–

13

3,116

6

3,135

7,477

4,358

(112)

(1,507)

10,215

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of
period779

Foreigncurrencytranslation
adjustment

Total
accumulatedof defined benefit
other
plans
comprehensive
incomeRemeasurements

281

(9)

1,052

Share
acquisitionrights66

Non-controllinginterests

Total net assets

1,173

9,375

Cumulative effects ofchanges in accounting
policies
Restated balance

(4)
779

281

(9)

1,052

66

1,173

9,371

Changes during period
Profit attributable toowners of parent

3,116

Purchase of treasury shares(2)

Disposal of treasury shares

4

Change in ownershipinterest of parent due totransactions with noncontrolling interests

17

Net changes in items otherthan shareholders’ equity

(146)

1,038

267

1,159

22

269

1,451

Total changes during period

(146)

1,038

267

1,159

22

269

4,587

Balance at end of period

633

1,320

258

2,211

88

1,443

13,9588

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 attributable toowners of parent

3,268

3,268

Purchase of treasury shares(2)

Disposal of treasury shares

(17)

Other

(51)

(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 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

(4) Consolidated Statements of Cash Flows(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Cash flows from operating activities
Profit before income taxes
Depreciation

4,031
687

4,347
685

Impairment losses
Amortization of goodwill

178
98

35
315

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

–
(70)

(74)
(12)

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

35
(166)

52
(11)

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

96
(83)

(119)
(103)

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

206

265

–

(933)

(159)

(112)

(1,520)(1,704)

–
59

(60)
90

Decrease (increase) in trade receivables
Decrease (increase) in inventories(1,285)(1,837)

1,375(1,547)

Increase (decrease) in trade payables
Subsidy income

881
(20)

(164)
(32)

–
–

76
(52)

and associates
Foreign exchange losses (gains)Share of loss (profit) of entities accounted for using equity
methodLoss (gain) on change in equity
Loss (gain) on disposal of non-current assets

Compensation expenses
Gain on liquidation of subsidiaries and associates
Other, net

103

(876)

Subtotal

1,236

1,438

Payments of retirement benefits for directors (and otherofficers)
Income taxes refund (paid)

–

(7)

(333)

(597)

Net cash provided by (used in) operating activities

903

833

142

104

859

–

–

731

Payments for investments in capital of subsidiaries andassociates resulting in change in scope of consolidation(1,893)–Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment

(719)
16

(1,738)4Purchase of intangible assets
Net decrease (increase) in time deposits

(35)
(262)

(32)
(62)

Proceeds from collection of loans receivable
Subsidies received

46
20

681
32

Proceeds from refund of leasehold and guarantee deposits
Other, net

753
(66)

2
(99)

(1,138)(375)

Cash flows from investing activities
Interest and dividends received
Proceeds from sale of investment securities
Proceeds from the sale of investments in capital ofsubsidiaries and associates resulting in change in scope of
consolidation

Net cash provided by (used in) investing activities

10

(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

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

(889)
6,333

(664)
5,730

Repayments of long-term loans payable and others
Interest paid

(4,145)(206)(3,746)(265)

Proceeds from sale of treasury shares
Purchase of treasury shares

0
(2)

0
(2)

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

(47)

(20)

(105)

(814)

(23)

(29)

913

187

scope of consolidation
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

355

303

Net increase (decrease) in cash and cash equivalents

1,034

949

Cash and cash equivalents at beginning of period

6,492

7,527

Cash and cash equivalents at end of period

7,527

8,476

11

(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
Toda United Industrial (Zhejiang) Co., Ltd., a consolidated subsidiary during the previous fiscal year, hasbeen excluded from the scope of consolidation as the Company completed the transfer of all of its
shareholding in the former subsidiary.
Similarly, TODA MAGNET (SHENZHEN) CO., LTD., a consolidated subsidiary during the previous fiscal
year, has been excluded from the scope of consolidation as the liquidation of the former subsidiary wascompleted.
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 a decrease of total assets in the
consolidated balance sheet, and a decrease of net sales in the consolidated statement of income.
(Changes in Accounting Policies)
Application of Implementation Guidance on Accounting Standard for Fair Value Measurement
The Company has applied the “Implementation Guidance on Accounting Standard for Fair Value
Measurement” (ASBJ Guidance No. 31, June 17, 2021) (hereinafter, “Fair Value Measurement AccountingStandard Implementation Guidance”) from the beginning of the current fiscal year, and decided to apply new
accounting policies set forth in the Fair Value Measurement Accounting Standard Implementation Guidance
prospectively in accordance with the transitional treatment provided for in paragraph 27-2 of the Fair Value
Measurement Accounting Standard Implementation Guidance. Note that this has no impact on the
consolidated financial statements.
Application of Financial Accounting Standards Board’s Accounting Standards Codification (ASC) No. 842“Leases”
Overseas consolidated subsidiaries that apply US accounting standards applied ASC 842 “Leases” starting in
the current fiscal year. Based on this, lessees generally record all leases as assets and liabilities on theirbalance sheets. Because this standard is applied retroactively, the cumulative effect of this change inaccounting policies is recognized on the day that it is applied. Note that this has a minor impact on the
consolidated financial statements for the fiscal year under review.
(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.

12

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.
3. Information regarding amounts of net sales, profit or losses, assets and other items for each reportablesegment
Fiscal year ended March 31, 2022
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

13,562

21,77035,332–35,332

5

456

461

(461)

–

13,5682,124
13,46922,226
3,285
18,35035,7945,410
31,820(461)(2,890)19,47235,332
2,519
51,292

270

245

515

172

687

219

334

553

216

770

Notes: 1

Adjustments are as follows.
(1) The adjustment of negative ¥2,890 million to segment profit includes corporate expenses of negative ¥2,890
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 assets that
do not belong to the reportable segments.
2 For segment profit, the Group has adjusted operating profit on its consolidated statement of income.

13

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 assets that
do not belong to the reportable segments.
2 For segment profit, the Group has adjusted operating profit on its consolidated statement of income.

14(Per-Share Information)
Fiscal year ended March 31,
2022

Fiscal year ended March 31,
2023

Net assets per share (Yen)

2,155.82

2,744.37

Earnings per share (Yen)

540.59566.50

Diluted earnings per share (Yen)

537.04562.48Notes: The basis of computation for earnings per share and diluted earnings per share is as follows.
Fiscal year ended March 31,
2022

Fiscal year ended March 31,
2023

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

3,116

3,268

–

–

3,116

3,268

5,764

5,770

–

–

38

41

(38)

(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(Significant Subsequent Events)
Not applicable.

15