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 Nine Months Ended December 31, 2022
(Based on Japanese GAAP)
February 10, 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

Shigeru Takaragi
Atsushi Tomokawa

Department
Scheduled date to file Quarterly Securities Report:

February 13, 2023

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:–No

Holding of quarterly financial results meeting:

NoTEL +81-82-577-0055(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the nine months ended December 31, 2022 (from April 1, 2022 to December 31, 2022)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Nine months ended December 31,
27,49111.4
1,203 (27.0)
2,746
(0.4)
2,677
27.2
2022
Nine months ended December 31,
24,676
–
1,649
–
2,757
–
2,105
–
2021
Note: Comprehensive income
Nine months ended December 31, 2022:¥4,036 million[38.6%]
Nine months ended December 31, 2021:¥2,911 million[–%]
Earnings per share
Nine months ended December 31,2022
Nine months ended December 31,2021

Diluted earnings per share

YenYen464.11

460.84365.23362.97

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 first quarter of the fiscal year ended March 31, 2022, and eachfigure for the nine months ended December 31, 2021, is the figure after applying the accounting standard and relevant ASBJ regulations.
The percentage of year-on-year change 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 December 31, 2022
As of March 31, 2022
Reference:

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

Net assets

Millions of yen
52,776
51,292Equity ratio

Millions of yen
16,648
13,958

%
29.9
24.2

¥15,786 million¥12,427 million

2. Cash dividends
Annual dividends per share
1st quarter-end
Year ended March 31, 2022
Year ending March 31, 2023

2nd quarter-end

3rd quarter-end

Yen

Yen

Yen

Yen

Yen––

0.00
0.00––0.00

0.00

0.00

0.00

Year ending March 31, 2023 (Forecast)
Note: Revisions to the forecasts of cash dividends most recently announced: No

Fiscal year-endTotal

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

Full year
Notes:

Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Yen
35,000 (0.9)
1,600 (36.5)
3,400 (18.7)
3,000 (3.7)
519.97

1. Revisions to the consolidated financial results forecasts most recently announced: Yes
2. Please refer to “Notification of Recording of Non-operating Income and Extraordinary Income and Revisions to Forecast of Full Year
Consolidated Financial Results” (in Japanese only) released today (February 10, 2023) for information on revisions to forecast offinancial results.

* Notes(1) Changes in significant subsidiaries during the nine months ended December 31, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

NoNo(3) 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(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2022

6,099,192 shares

As of March 31, 2022

6,099,192 shares

326,379 shares

As of March 31, 2022

334,712 shares

Number of treasury shares at the end of the period
As of December 31, 2022

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2022

5,769,582 shares

Nine months ended December 31, 2021

5,764,206 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
* Proper use of earnings forecasts, and other special matters
The forecast of financial results is based on information available at the current time and include many uncertain factors. Actual financial
results and other items may differ from the above forecast for any of various reasons, including changes in business conditions. Please refer to“(3) Explanation of Forecast of Financial Results and Other Forward-looking Statements” of “1. Qualitative Information on Quarterly
Financial Results” on page 1 of the attached materials for the items related to the above forecasts.

Attached MaterialIndex
1. Qualitative Information on Quarterly Financial Results ................................................................................ 1(1) Explanation of Business Results ..................................................................................................................... 1(2) Explanation of Financial Position .................................................................................................................. 1(3) Explanation of Forecast of Financial Results and Other Forward-looking Statements............................ 1
2. Quarterly Consolidated Financial Statements and Significant Notes Thereto .............................................. 2(1) Consolidated Balance Sheets........................................................................................................................... 2(2) Consolidated Statements of Income (Cumulative) and Consolidated Statements of Comprehensive
Income (Cumulative) ....................................................................................................................................... 4Consolidated Statements of Income (Cumulative)........................................................................................ 4
Consolidated Statements of Comprehensive Income (Cumulative) ............................................................ 5(3) Notes to Quarterly Consolidated Financial Statements ............................................................................... 6(Notes on Assumption of Going Concern) ..................................................................................................... 6(Notes When There Are Significant Changes in Amounts of Shareholders’ Equity) ................................ 6(Change in Scope of Application of Equity Method and Scope of Consolidation)..................................... 6(Changes in Accounting Policies) ................................................................................................................... 6

1. Qualitative Information on Quarterly Financial Results(1) Explanation of Business Results
In the business environment surrounding the TODA KOGYO Group (the “Group”) during the nine months
ended December 31, 2022, restrictions on movement imposed because of COVID-19 were relaxed, economic
activities gradually returned to normal, and there were signs of a gradual economic recovery. However, due tofactors such as price increases caused by surging prices of raw materials and energy, heightened US-Chinatensions and prolonged situation in the Ukraine, as well as downside pressure on overseas economies from theglobal monetary tightening, the future outlook remained uncertain.
Amid these conditions, sales at the Group were strong, centered on our core business of coloring materials, andnet sales rose year on year.
The following is a summary for each segment.
For the functional pigments segment, net sales rose year on year as market demand has remained firm since theprevious fiscal year, and sales of materials for copiers and printers, materials for coatings, and materials forcatalysts were firm.
In the electronic materials segment, we faced a decline in the demand for certain products such as dielectricmaterials due to factors including inventory adjustments owing to the global semiconductor shortage as well as
weaker demand for smartphones and PCs. Meanwhile, net sales increased from the previous year for bonded
rare earth magnet material, which possesses world-class magnetic properties, mainly for use in car motors.
Additionally, Jiangmen & Partner’s Magnetic Product Co., Ltd., which became a subsidiary on August 13,
2021, was added to the scope of consolidation (included in the statement of income starting from the third
quarter of the previous fiscal year). For this reason, net sales were higher than that of the previous year.
Turning to profit, operating profit and ordinary profit declined year on year due to the impact of surging prices
for raw materials and energy as well as shipping costs. However, profit attributable to owners of parent for thequarter increased year on year due to factors including extraordinary income from the transfer of shareholdingin Toda United Industrial (Zhejiang) Co., Ltd., a former consolidated subsidiary.
As a result of the above, net sales came to ¥27,491 million (up 11.4% year on year), operating profit, ¥1,203
million (down 27.0% year on year), ordinary profit, ¥2,746 million (down 0.4% year on year), and profit
attributable to owners of parent, ¥2,677 million (up 27.2% year on year).
(2) Explanation of Financial Position
AssetsAssets as of December 31, 2022, came to ¥52,776 million, an increase of ¥1,484 million over the end of theprevious fiscal year. This was mainly due to increases of ¥1,208 million in cash and deposits, ¥473 million inraw materials and supplies, ¥711 million in other current assets, ¥606 million in goodwill and ¥1,531 million in
investments in capital of subsidiaries and associates, despite decreases of ¥2,481 million in notes and accounts
receivable - trade and ¥1,008 million in investments and other assets.
Liabilities
Liabilities as of December 31, 2022, came to ¥36,128 million, a decrease of ¥1,205 million over the end of theprevious fiscal year. This was mainly due to decreases of ¥2,503 million in notes and accounts payable - trade,¥200 million in provision for bonuses, and ¥348 million in long-term accounts payable - other, despite anincrease of ¥2,282 million in borrowings.
Net assets
Net assets as of December 31, 2022, came to ¥16,648 million, an increase of ¥2,690 million over the end of theprevious fiscal year. This was mainly due to increases of ¥2,677 million in profit attributable to owners ofparent, and ¥742 million in foreign currency translation adjustment, despite a decrease of ¥663 million in noncontrolling interests.
(3) Explanation of Forecast of Financial Results and Other Forward-looking Statements
Please refer to “Notification on the Recording of Non-operating Income and Extraordinary Income, andRevisions to Our Full-year Forecast of Consolidated Financial Results” (in Japanese only) released today(February 10, 2023) for information on revisions to forecast of consolidated financial results.

1

2. Quarterly Consolidated Financial Statements and Significant Notes Thereto(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2022

As of December 31, 2022

AssetsCurrent assets
Cash and deposits

7,962

9,170

Notes and accounts receivable - trade
Merchandise and finished goods

10,524
4,423

8,043
4,620

Work in process
Raw materials and supplies

1,973
3,023

1,965
3,496

Other
Allowance for doubtful accounts

1,480
(6)

2,191
(10)

Total current assets

29,381

29,477

Buildings and structures, net
Machinery, equipment and vehicles, net

2,324
1,707

2,012
1,646

Land
Construction in progress

6,320
224

6,323
1,027

Non-current assets
Property, plant and equipment

Other, net

783

531

11,361

11,542

Goodwill
Other

1,992
154

2,598130

Total intangible assets

2,147

2,728

Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities
Investments in capital of subsidiaries and associates
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

2

2,607

2,712

4,443
1,353

5,974
345

(3)

(3)

8,401

9,027

21,91023,29951,292

52,776

(Millions of yen)
As of March 31, 2022

As of December 31, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade

5,7143,211

8,601
3,278

7,979
4,031

Income taxes payable
Provision for bonuses

278
295

265
95

Provision for environmental measures
Provision for loss on factory closings

67
1172
–

Short-term borrowings
Current portion of long-term borrowings

Other

2,029

1,695

Total current liabilities

20,276

17,351Long-term borrowings
Long-term accounts payable - other12,782940

14,933592

Retirement benefit liability
Other

1,912
1,421

1,842
1,407

Non-current liabilities

Total non-current liabilities

17,056

18,77637,33336,128

Share capitalCapital surplus

7,477
4,358

7,477
4,288

Retained earnings
Treasury shares(112)(1,507)2,564(1,468)

Total shareholders’ equity

10,215

12,862633622Foreign currency translation adjustment
Remeasurements of defined benefit plans

1,320
258

2,062
238

Total accumulated other comprehensive income

Total liabilities
Net assets
Shareholders’ equity

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

2,211

2,923

Share acquisition rights
Non-controlling interests

88
1,443

81780

Total net assets

13,958

16,64851,292

52,776

Total liabilities and net assets3(2) Consolidated Statements of Income (Cumulative) and Consolidated Statements of Comprehensive Income(Cumulative)
Consolidated Statements of Income (Cumulative)(Millions of yen)
Nine months ended

Nine months ended

December 31, 2021

December 31, 2022

Net sales

24,67627,491

Cost of sales

19,04921,623Gross profit

5,627

5,867

861
892

922
985

Other

2,224

2,756

Total selling, general and administrative expenses

3,977

4,663

1,649

1,203

314032
58

11
1,069

11
1,349

Subsidies for employment adjustment
Foreign exchange gains

2033–
140

Other

138

173

1,346

1,765

Interest expenses
Other

151
86

200
21

Total non-operating expenses

237

222

2,757

2,746

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

3–

460

Gain on sale of investments in capital of subsidiaries andassociates–

933

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

–
4052–

National subsidies
Compensation income

20–

136

Total extraordinary income

63

1,088

Selling, general and administrative expenses
Employees’ salaries
Research and development expenses

Operating profit
Non-operating income
Interest income
Dividend income
Outsourcing service income
Share of profit of entities accounted for using equity method

Total non-operating income
Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on disposal of non-current assets

4555

Loss on tax purpose reduction entry of non-current assets
Compensation expenses

16––
76

Total extraordinary losses

61131

Profit before income taxes

2,760

3,703

Income taxes - current
Income taxes - deferred263
13149091Total income taxes

394

582

2,365

3,121

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

4260

443

2,105

2,677

Consolidated Statements of Comprehensive Income (Cumulative)(Millions of yen)
Nine months ended
December 31, 2021

Nine months ended
December 31, 2022

Profit2,365

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

(121)

(11)

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

478
(4)

671
(19)

Share of other comprehensive income of entities accounted forusing equity method

193273

Total other comprehensive income

545

914

2,911

4,036

2,554
357

3,389646

Comprehensive income

3,121

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests5(3) Notes to Quarterly Consolidated Financial Statements(Notes on Assumption of Going Concern)
Not applicable(Notes When There Are Significant Changes in Amounts of Shareholders’ Equity)
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 former consolidated subsidiary, has been excluded from thescope of consolidation in the quarter under review as the Company has completed the transfer of all of its
shareholding in the former subsidiary.
Similarly, TODA MAGNET (SHENZHEN) CO., LTD., a former consolidated subsidiary, has been excluded
from the scope of consolidation in the quarter under review as the liquidation of the former subsidiary has
been completed.
These changes in the scope of consolidation are expected to cause material effects to the consolidated
financial statements of the fiscal year to which the quarter under review belongs. Contemplated effects
include a decrease of total assets in the consolidated balance sheet, and a decrease of net sales in theconsolidated 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 first quarter of the current fiscal year, anddecided 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 inparagraph 27-2 of the Fair Value Measurement Accounting Standard Implementation Guidance. This does nothave any impact on the quarterly consolidated financial statements.

6