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, 2022
(Based on Japanese GAAP)May 13, 2022
Company name:

TODA KOGYO CORP.

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

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

President and 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, 2022

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

June 29, 2022–

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

Yes
Yes

(Via video streaming - scheduled)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)(1) Consolidated operating results
Net sales
Millions of yen
35,332
29,024

Year ended March 31, 2022
Year ended March 31, 2021
Note: Comprehensive income

Operating profit% Millions of yen–
2,519(12.4)
11

Year ended March 31, 2022:
Year ended March 31, 2021:
Earnings per share

Year ended March 31, 2022
Year ended March 31, 2021%––

¥4,810 million¥ (3,195) million

Percentages indicate year-on-year changes
Profit attributable toOrdinary profit
owners of parent
Millions of yen% Millions of yen
%
4,184
–
3,116
–
(600)
–
(4,142)
–
[–%]
[–%]

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen
%
%
%
537.04
30.3
9.0
7.1
–
(42.2)(1.4)
0.0

Diluted earnings per
share

Yen
540.59(718.76)

Reference:

Share of profit (loss) of entities accounted for using equity method
Year ended March 31, 2022:¥1,520 million
Year ended March 31, 2021:¥ (831) 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 current 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, 2022
As of March 31, 2021
Reference:

Millions of yen
51,292
41,783

Net assets
Millions of yen
13,9589,375

Equity ratio

Net assets per share
%
24.2
19.5

Yen
2,155.82
1,411.60

EquityAs of March 31, 2022:¥12,427 million
As of March 31, 2021:¥8,135 million
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 current 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.

(3) Consolidated cash flows

Year ended March 31, 2022
Year ended March 31, 2021

Cash flows fromoperating activities
Millions of yen
903
612

Cash flows frominvesting activities
Millions of yen(1,138)(1,219)Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen
913
7,527
1,416
6,492

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

Year ended March 31, 2021
Year ended March 31, 2022
Year ending March 31, 2023
(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, 2023 (from April 1, 2022 to March 31, 2023)
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
19,00018.9
800 (36.5)
1,200 (35.7)700 (54.9)
121.44September 30, 2022
Full year
40,00013.2
1,600 (36.5)
2,500 (40.3)
1,500 (51.9)
260.22* Notes(1) Changes in significant subsidiaries during the year ended March 31, 2022
(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, 2022

6,099,192 shares As of March 31, 2021

6,099,192 shares

334,712 shares As of March 31, 2021

335,871 shares

Number of treasury shares at the end of the period
As of March 31, 2022
Average number of shares during the period
Year ended March 31, 2022

5,764,281 shares Year ended March 31, 2021

5,763,677 shares[Reference] Overview of non-consolidated financial results
1. Non-consolidated financial results for the year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)(1) Non-consolidated operating results
Percentages indicate year-on-year changes
Net salesYear ended March 31, 2022
Year ended March 31, 2021

Millions of yen
17,033
17,284

Operating profit% Millions of yen–
833(17.5)(760)

Earnings per share
Year ended March 31, 2022
Year ended March 31, 2021

Ordinary profit%––

Millions of yen
1,231
(650)

Profit%––Millions of yen
1,598(3,541)%––

Diluted earnings per shareYen
277.35(614.51)

Yen
275.53–

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 current 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, 2022
As of March 31, 2021

Millions of yen
38,64735,299Net assets
Millions of yen
9,022
7,556

Equity ratio

Net assets per share
%
23.1
21.2

Yen
1,549.88
1,299.63

Reference:

EquityAs of March 31, 2022:¥8,934 million
As of March 31, 2021:¥7,490 million
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 current 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.

* 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 4 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 and contents of financial results meeting)
Supplementary material on financial results will be posted on the Company’s website on June 7, 2022.
In order to prevent the spread of the novel coronavirus disease (COVID-19), instead of holding the usual financial results meeting, theCompany plans to post a video of the financial results on its website on or after June 7, as soon as such material is ready.

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................................................................................................................................................. 3
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(Changes in Accounting Policies).................................................................................................................. 13(Changes in Presentation) ............................................................................................................................. 14(Segment Information, Etc.) ......................................................................................................................... 14(Per-Share Information)................................................................................................................................ 17(Significant Subsequent Events) ................................................................................................................... 18

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, 2022 (the “fiscal year under review”), restrictions on behavior were relaxed due largely to
global developments in vaccinations for the novel coronavirus (COVID-19), and there was a visible recovery
in economic conditions. However, due to the appearance of new virus variants and the resulting resurgence in
COVID-19, the situation surrounding the future continues to be unclear.
Additionally, due to the situation in Ukraine, the stagnation of economic activity globally, including further
rises in the prices of raw materials and energy, is a worry.
Under such conditions, during the fiscal year under review, demand recovered both domestically and overseas
against the backdrop of the recovery of the global economy, and sales were strong.
In terms of profit, while it is being impacted by the rise in marine transport expenses due to the container
shortages as well as in the price of raw materials and energy, the Group experienced an increase in marginal
profit in line with an increase in net sales and growth in sales of products with high profit margins. In addition,
during the previous fiscal year, as demand for finished goods by the Group was sluggish due to the COVID-19
pandemic, the Group was forced to make groupwide production adjustments. During the fiscal year underreview, however, productivity increased due to stable operation.
As a result of the above, net sales came to ¥35,332 million and operating profit came to ¥2,519 million(operating profit of ¥11 million in the previous fiscal year).
For non-operating income and expenses, revenues from affiliates accounted for using the equity method
progressed on a favorable note. As a result, the Group posted ¥1,520 million in the share of profit of entities
accounted for using the equity method. And the exchange rate veering toward depreciation of the yen, theGroup posted foreign exchange gains of ¥151 million. Largely due to this, ordinary profit came to ¥4,184
million (ordinary loss of ¥600 million in the previous fiscal year) and profit attributable to owners of parent
came to ¥3,116 million (loss attributable to owners of parent of ¥4,142 million in the previous fiscal year).
Notes: 1 The Group has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No.
29, March 31, 2020) and relevant ASBJ regulations from the beginning of the fiscal year underreview. In line with this, while the Group had originally recognized the total amount ofconsideration that it receives from customers as revenues for some transactions, it has changed tothe method of recognizing revenues based on the net amount. As a result, compared to the original
posting method (total amount of consideration), net sales for the fiscal year under review decreasedby ¥4,643 million. Accordingly, the Group has not indicated year-on-year comparisons (%) for net
sales.
2 In the fiscal year under review, the Company has included Jiangmen & Partner’s Magnetic ProductCo., Ltd. in its scope of consolidation due to converting it into a subsidiary after acquiring a stake init. Note that the closing date for Jiangmen & Partner’s Magnetic Product Co., Ltd.’s settlement ofaccounts is December 31, differing by three months from the closing date of the Group’s
consolidated settlement of accounts. Because the Group has established July 1, 2021 as the deemed
acquisition date, operating results for the period from July 1, 2021 to December 31, 2021 have been
included in the consolidated statement of income for the fiscal year under review.
The status of each segment is as follows.
Functional pigments
Net sales in general progressed favorably relative to the previous fiscal year. In particular, materials for copiersand printers slumped in the previous fiscal year due to the impact of suppression of economic and social
activity largely as a result of government orders prohibiting people from venturing outdoors and businesses
suspending their operation, but recovered considerably in the fiscal year under review. Additionally, materials
for coatings and catalysts that performed favorably due to the recovery in demand. As a result of the above, net
sales came to ¥13,568 million and segment profit came to ¥2,124 million, an increase of 68.9% year on year.
Note that in line with the application of the “Accounting Standard for Revenue Recognition” and relevant
ASBJ regulations, the amount of net sales posted for certain transactions has been changed from the total

1amount of consideration to the net amount. Due to the impact of this, relative to the original posting method(total amount of consideration), net sales for the fiscal year under review decreased by ¥1,702 million.
Electronic materials
Due to progress in CASE trends in the automobile market and the increased popularization of Information andCommunication Technologies in the market, sales of electronic materials, particularly those of magnetic anddielectric materials (barium titanate), grew over the previous fiscal year. Up to now, magnet materials havebeen mainly used in motors for automobiles and household appliances. However, in line with the electrificationof automobiles in particular, demand for those materials has grown. Additionally, the acquisition of Jiangmen& Partner’s Magnetic Product Co., Ltd. into a subsidiary also contributed to increases in revenue and profit.
For dielectric materials as well, there was healthy demand for their use in multilayer ceramic capacitors, which
are often contained in ICT devices and EVs. As a result of the above, net sales came to ¥22,226 million andsegment profit came to ¥3,285 million, an increase of 118.2% year on year.
Note that in line with the application of the “Accounting Standard for Revenue Recognition” and relevant
ASBJ regulations, the amount of net sales posted for certain transactions has been changed from the total
amount of consideration to the net amount. Due to the impact of this, relative to the original posting method(total amount of consideration), net sales for the fiscal year under review decreased by ¥2,941 million.
(2) Summary of Financial Position for Fiscal Year Under Review
AssetsAssets at the end of the fiscal year under review came to ¥51,292 million, an increase of ¥9,509 million overthe end of the previous fiscal year. This was mainly due to an increase of ¥1,333 million in cash and deposits,
an increase of ¥2,344 million in notes and accounts receivable - trade, an increase of ¥1,061 million inmerchandise and finished goods, an increase of ¥877 million in raw materials and supplies, an increase of¥1,992 million in goodwill, and an increase of ¥1,702 million in investments in capital of subsidiaries andassociates.
Liabilities
Liabilities at the end of the fiscal year under review came to ¥37,333 million, an increase of ¥4,925 million
over the end of the previous fiscal year. This was mainly due to an increase of ¥1,719 million in notes andaccounts payable - trade, an increase of ¥1,463 million in borrowings, and an increase of ¥940 million in longterm accounts payable - other.
Net assets
Net assets at the end of the fiscal year under review came to ¥13,958 million, an increase of ¥4,583 million
over the end of the previous fiscal year. This was mainly due to an increase of ¥3,116 million in profit
attributable to owners of parent and an increase of ¥1,039 million in foreign currency translation adjustments.
As a result of the above, net assets per share increased by ¥744.22 year-on-year to ¥2,155.82 and the equity
ratio increased by 4.7 points year-on-year to 24.2%.
(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 ¥7,527 million, an
increase of ¥1,034 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 ¥903 million (compared to ¥612 million provided in theprevious fiscal year). This was mainly due to an increase in cash largely resulting from ¥4,031 million in profit
before income taxes, ¥687 million in depreciation and ¥881 million in an increase (decrease) in trade payables,
which exceeded a decrease in cash largely resulting from ¥1,520 million in share of loss (profit) of entities
accounted for using equity method, ¥1,285 million in a decrease (increase) in trade receivables, and ¥1,837
million in a decrease (increase) in inventories.

2

Cash flows from investing activities
Net cash used in investing activities came to ¥1,138 million (compared to ¥1,219 million used in the previous
fiscal year). This was mainly due to a decrease in cash largely resulting from ¥1,893 million in payments forinvestments in capital of subsidiaries and associates and ¥719 million in the purchase of property, plant andequipment, which exceeded an increase in cash largely resulting from ¥859 million in proceeds from sale ofinvestment securities and ¥753 million in proceeds from refund of leasehold and guarantee deposits.
Cash flows from financing activities
Net cash provided by financing activities came to ¥913 million (down from ¥1,416 million in the previous
fiscal year). This was mainly due to an increase in cash largely resulting from ¥6,333 million in proceeds fromlong-term borrowings, which exceeded a decrease in cash largely resulting from ¥889 million in a net decreasein short-term borrowings, ¥4,145 million in repayments of long-term loans payable and others, and ¥206
million in interest paid.
(4) Future Outlook
Regarding the future economic outlook, it is expected that turmoil in supply chains due to the spreading ofnovel coronavirus (COVID-19) variants, rising raw material and energy prices due to the situation in Ukraine,concern surrounding further inflation and other factors will cause the situation to remain unclear for the time
being despite progress in the steady normalization of economic activity in certain regions due to vaccinations
for COVID-19 and government policy in each country.
In the business environment surrounding the Group, while there is worry of elements such as the impact thatthe global semiconductor shortage will have on the automobile market and the stagnation of economic activity
that city lockdowns in China will cause, it is anticipated that progress in CASE trends in the automobile market
and the increased popularization of Information and Communication Technologies in the market will result infurther growth in the size of those markets, causing heightened demand for the Group’s products. In particular,
the electronic materials business is expected to experience growth centered on magnetic and dielectricmaterials. At the same time, in terms of profit, there are concerns largely surrounding the rise in raw material
and energy prices and exchange rate fluctuations, which require a cautious outlook.
Based on such conditions, for its consolidated operating results forecast for the fiscal year ending March 31,
2023, the Group is forecasting net sales of ¥40,000 million, operating profit of ¥1,600 million yen, ordinary
profit of ¥2,500 million, and profit attributable to owners of parent of ¥1,500 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, 2021

As of March 31, 2022

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

6,629
8,180

7,962
10,524Merchandise and finished goods
Work in process

3,362
1,409

4,423
1,973

Raw materials and supplies
Other

2,146
1,342

3,023
1,480

(6)

(6)

23,06529,381

2,340

2,324

1,294
6,317

1,707
6,320

177
578

224
783

10,70911,361

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

–

1,992

Other

200

154

Total intangible assets

200

2,147

3,526
2,741

2,607
4,443

Long-term loans receivable
Retirement benefit asset

689
–

1,027
161

Other
Allowance for doubtful accounts

853
(3)

165
(3)

Total investments and other assets

7,807

8,401

18,71821,91041,78351,292

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, 2021

As of March 31, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade

3,995

5,714

9,372
3,756

8,601
3,278

Income taxes payable
Provision for bonuses

165
259

278
295

Provision for environmental measures
Provision for loss on factory closings

60
80

67
11

Other

1,359

2,029

Total current liabilities

19,051

20,276Long-term borrowings
Long-term accounts payable - other

10,070–12,782940

Retirement benefit liability
Deferred tax liabilities

2,080
878

1,912
974

327

446

13,356

17,05632,40837,333

Share capital
Capital surplus

7,477
4,344

7,477
4,358

Retained earnings
Treasury shares(3,224)(1,513)(112)(1,507)

Total shareholders’ equity

7,083

10,215

779

633

281
(9)

1,320
258

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
Foreign currency translation adjustment
Remeasurements of defined benefit plans

1,052

2,211

Share acquisition rights
Non-controlling interests

Total accumulated other comprehensive income

66
1,173

88
1,443

Total net assets

9,375

13,95841,78351,292

Total liabilities and net assets5(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Net sales
Cost of sales

29,02424,24635,332
27,328Gross profit

4,778

8,003

Selling, general and administrative expenses
Freight-out

529

756

Employees’ salaries and allowances
Provision for bonuses

1,018
56

1,349
72

94
160

87
177

Research and development expenses
Other

1,274
1,632

1,258
1,783

Total selling, general and administrative expenses

Retirement benefit expenses
Depreciation

4,766

5,484

Operating profit

11

2,519

Non-operating income
Interest income

38

42

Dividend income
Rental income

52
41

40
38

Foreign exchange gains
Share of profit of entities accounted for using equity method

34
–

151
1,520

Subsidies for employment adjustment
Miscellaneous income

181
115

20
155

Total non-operating income

464

1,969

214

206

831
30

–
97

1,076

304

(600)

4,184

Gain on disposal of non-current assets
Gain on sale of investment securities

8
1

13
40

National subsidies
Compensation income

–
–

20
90

Total extraordinary income

10

165

Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Miscellaneous losses
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income6

(Millions of yen)

Extraordinary losses
Loss on disposal of non-current assets
Loss on tax purpose reduction entry of non-current assets
Loss on sale of investment securities
Loss on valuation of investment securities
Impairment losses
Loss on liquidation of subsidiaries
Provision for loss on factory closings

Fiscal year ended

Fiscal year ended

March 31, 2021

March 31, 2022
63

72

–
–

16
4

739
2,223

–
178

–
77

46
–

Total extraordinary losses

3,104

318

Profit (loss) before income taxes(3,694)

4,031

Income taxes - current

240

385

Income taxes - deferred

42

153

Total income taxes
Profit (loss)

283

538

(3,977)

3,492

Profit attributable to non-controlling interests

165

376

Profit (loss) attributable to owners of parent(4,142)

3,116

7

Consolidated Statements of Comprehensive Income(Millions of yen)
Fiscal year ended
March 31, 2021
Profit (loss)

Fiscal year ended
March 31, 2022
(3,977)

3,492

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

578

(146)

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

127
49

906
267

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

26

290

Total other comprehensive income

781

1,318

(3,195)

4,810(3,375)

4,275

179

534

Comprehensive 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, 2021
(Millions of yen)
Shareholders’ equity
Share capital
Balance at beginning of
periodCapital surplus

7,477

Retained earnings

8,886

Total shareholders’equityTreasury shares(3,624)(1,512)

11,227

Cumulative effects ofchanges in accounting
policies–

Restated balance

7,477(3,624)

8,886(1,512)

11,227

Changes during period
Profit (loss) attributable toowners of parent(4,142)(4,142)

Purchase of treasury shares

(1)

(1)

Disposal of treasury shares–

Deficit disposition(4,542)

4,542–

Change in ownershipinterest of parent due totransactions with noncontrolling interests–

Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period–(4,542)399(1)(4,143)

7,477

4,344

(3,224)(1,513)

7,083

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of
period201

Foreigncurrencytranslation
adjustment

Total
accumulated
otherof defined benefit
comprehensive
plansincomeRemeasurements

142

(58)

284

Share
acquisitionrights49

Non-controllinginterests

Total net assets

1,029

12,590

Cumulative effects ofchanges in accounting
policies
Restated balance

–
201

(58)

142

284

49

1,029

12,590Changes during period
Profit (loss) attributable toowners of parent(4,142)

Purchase of treasury shares(1)

Disposal of treasury shares–

Deficit disposition–

Change in ownershipinterest of parent due totransactions with noncontrolling interests–

Net changes in items otherthan shareholders’ equity

578

139

49

767

17

143

928

Total changes during period

578

139

49

767

17

143

(3,215)

Balance at end of period

779

281

(9)

1,052

66

1,173

9,375

9

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)

(3,228)4,344(1,513)

7,079

Changes during period
Profit (loss) attributable toowners of parent

3,116

3,116

Purchase of treasury shares
Disposal of treasury shares

(4)

(2)

(2)

8

4

Deficit disposition–

Change in ownershipinterest of parent due totransactions with noncontrolling interests

17

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
accumulated
otherof defined benefit
comprehensive
plansincomeRemeasurements

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

(9)

281

1,052

66

1,173

9,371

Changes during period
Profit (loss) attributable toowners of parent

3,116

Purchase of treasury shares(2)

Disposal of treasury shares

4

Deficit disposition–

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

13,95810

(4) Consolidated Statements of Cash Flows(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Cash flows from operating activities
Profit (loss) before income taxes
Depreciation(3,694)
1,043

4,031
687

Impairment losses
Amortization of goodwill

2,223
32

178
98

Increase (decrease) in provision for environmental measures
Increase (decrease) in provision for loss on factory closings(1,008)
77–(70)

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

(29)
–

35
(166)

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

(71)
(91)

96
(83)

Interest expenses
Loss (gain) on valuation of investment securities

214
739

206
–

5

(159)

831

(1,520)55

59Decrease (increase) in trade receivables
Decrease (increase) in inventories

159
191

(1,285)(1,837)

Increase (decrease) in trade payables
Subsidy income

254
–

881
(20)

Other, net

(106)

103

Subtotal

825

1,236

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

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

(2)

–

(210)

(333)

Net cash provided by (used in) operating activities

612

903

137

142

29

859

Cash flows from investing activities
Interest and dividends received
Proceeds from sale of investment securities
Payments for investments in capital of subsidiaries andassociates
Purchase of property, plant and equipment–(1,893)

(945)

(719)

Proceeds from sale of property, plant and equipment
Purchase of intangible assets

9
(80)

16
(35)

Net decrease (increase) in time deposits
Loan advances

(64)
(300)

(262)
–

6
–

46
20

–
(11)

753
(66)

(1,219)(1,138)Proceeds from collection of loans receivable
Subsidies received
Proceeds from refund of leasehold and guarantee deposits
Other, net
Net cash provided by (used in) investing activities

11

(Millions of yen)

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

Fiscal year ended

Fiscal year ended

March 31, 2021

March 31, 2022
1,075

(889)

4,700
(4,096)

6,333(4,145)Interest paid
Proceeds from sale of treasury shares

(214)
–

(206)
0

Purchase of treasury shares
Dividends paid to non-controlling interests

(1)
(23)

(2)
(47)

–

(105)

(23)

(23)

Net cash provided by (used in) financing activities

1,416

913

Effect of exchange rate change on cash and cash equivalents

141

355

Net increase (decrease) in cash and cash equivalents

949

1,034

Cash and cash equivalents at beginning of period

5,542

6,492

Cash and cash equivalents at end of period

6,492

7,527

Proceeds from long-term borrowings
Repayments of long-term loans payable and others

Purchase of shares of subsidiaries not resulting in change inscope of consolidation
Other, net

12(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
After conducting an absorption-type merger with the Company as the surviving company and Toda Pigment
Corp. as the extinguished company, the Company has excluded Toda Pigment Corp., which had been a
consolidated subsidiary in the previous fiscal year, from its scope of consolidation in the fiscal year underreview.
Additionally, in the fiscal year under review, the Company has included Jiangmen & Partner’s Magnetic
Product Co., Ltd. and one of its subsidiaries in the scope of consolidation due to making them the Company’s
subsidiaries by acquiring a stake in them. Note that the Group has established July 1, 2021 as the deemed
acquisition date. Moreover, as the difference between that date and the closing date of the quarterly
consolidated settlement of accounts does not exceed three months, for the second quarter, the Group has only
consolidated the balance sheet of Jiangmen & Partner’s Magnetic Product Co., Ltd. as of June 30, 2021, andhas consolidated its statement of income starting from the third quarter.
(Changes in Accounting Policies)
Application of Accounting Standard for Revenue Recognition, etc.
The Group has elected to apply the “Accounting Standard for Revenue Recognition” (ASBJ Statement No.
29, March 31, 2020) and relevant ASBJ regulations from the beginning of the fiscal year under review andrecognize revenue at the time the control of promised goods or services is transferred to the customer for theamount expected to be received upon exchange of said goods or services.
Accordingly, while the Group had originally recognized revenues from the sale of merchandise and products
at the time of shipment, it has changed to the method of recognizing revenues at the point in time whencontrol of said products is transferred to the customer. Additionally, for transactions conducted with theGroup as an agent, while the Group had originally recognized revenues as the total amount of considerationthat it receives from customers, it has changed to the method of recognizing revenues based on the net
amount. Furthermore, for non-free materials supplied by a supplier in subcontracting transactions where thesupplier has an obligation to buy back said supplies, while the Group had originally posted net sales and thecost of sales for those supplies at the time that it sold them back to the supplier, it has changed to the methodof recognizing revenues in a net amount equivalent solely to the processing fee. In addition, for the fiscal
year-end inventory balance of non-free materials supplied by a supplier in subcontracting transactions where
the supplier has an obligation to buy back said supplies, while the Group had originally presented those
supplies as “merchandise and finished goods” and “work in process” under “current assets” and as “rawmaterials and supplies,” it now presents them as “other” under “current assets.”
The application of the Accounting Standard for Revenue Recognition, etc. is in accordance with thetransitional treatment provided for in the proviso to paragraph 84 of the Accounting Standard for Revenue
Recognition. The Group has factored the cumulative effect of applying the new accounting policy
retrospectively prior to the beginning of the fiscal year under review in the opening balance of retained
earnings of the fiscal year under review, and the new accounting policy was applied from the opening balanceof the fiscal year under review as a change in the accounting policy.
As a result, on the consolidated balance sheet for the fiscal year under review, merchandise and finishedgoods decreased by ¥12 million, work in process decreased by ¥32 million, raw materials and supplies
decreased by ¥43 million, and other under current assets increased by ¥88 million. On the consolidated
statement of income for the fiscal year under review, net sales decreased by ¥4,643 million, the cost of sales
decreased by ¥4,619 million, and operating profit, ordinary profit and profit before income taxes eachdecreased by ¥24 million. Additionally, the opening balance of retained earnings at the beginning of the fiscal
year under review decreased by ¥4 million.
The impact of this on the consolidated statement of cash flows and per-share data for the fiscal year underreview is minute.

13

Note that in accordance with the transitional treatment provided for in paragraph 89-2 of the AccountingStandard for Revenue Recognition, figures for the previous fiscal year have not been restated in accordancewith the new approach to presentation.
Application of Accounting Standard for Fair Value Measurement, etc.
The Group has elected to apply the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No.
30, July 4, 2019) and relevant ASBJ regulations from the beginning of the fiscal year under review and to
apply the new accounting policy provided for in Accounting Standard for Fair Value Measurement, etc.
prospectively in accordance with the transitional treatment provided for in paragraph 19 of the AccountingStandard for Fair Value Measurement and paragraph 44-2 of the “Accounting Standard for Financial
Instruments” (ASBJ Statement No. 10, July 4, 2019). Note that this has no impact on the consolidated
financial statements.
(Changes in Presentation)
Consolidated statements of cash flows
As the monetary significance of “proceeds from sale of investment securities” and “net decrease (increase) intime deposits,” which were included in “other, net” under “cash flows from investing activities” in theprevious fiscal year, has increased, the Group has elected to state them independently starting from the fiscal
year under review. To reflect this change in the approach to presentation, the Group has restated figures in its
consolidated financial statements for the previous fiscal year.
As a result, on the consolidated statement of cash flows for the previous fiscal year, the minus ¥46 million
presented in “other, net” under “cash flows from investing activities” has been restated as ¥29 million in“proceeds from sale of investment securities,” minus ¥64 million in “net decrease (increase) in time
deposits,” and minus ¥11 million in “other, net.”(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 “electronicmaterials.”
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
Figures for profit (loss) in reportable segments are on an operating profit (loss) basis.
Inter-segment revenues and transfers are based on prevailing market prices.
Application of Accounting Standard for Revenue Recognition, etc.
As described in “Application of Accounting Standard for Revenue Recognition, etc.” under “(Changes in
Accounting Policies),” the Group has applied the Accounting Standard for Revenue Recognition, etc. fromthe fiscal year under review and changed the accounting treatment method for revenue recognition
standards. Accordingly, the Group has changed the method of measuring profit or loss of businesssegments in a similar manner.

14Based on said changes, compared to the original method, net sales and segment profit in the functional
pigments segment decreased by ¥1,702 million and ¥2 million, respectively. Net sales and segment profit
in the electronic materials segment decreased by ¥2,941 million and ¥22 million, respectively.
3. Information regarding amounts of net sales, profit or losses, assets and other items for each reportablesegment
Fiscal year ended March 31, 2021
(Millions of yen)
Adjustments(Note 1)

Amount posted
onconsolidated
financialstatements(Note 2)

Reportable segments
Functional
pigments

Electronicmaterials

Total

Net sales
Net sales to externalcustomers

12,311

16,712

29,024–29,024

21

416

438

(438)

–

12,332

17,12929,462(438)

29,024

Segment profit

1,257

1,505

2,763

(2,751)

11

Segment assets

12,08912,27524,364

17,41941,783

Depreciation

535

293

829

213

1,043

Changes in property, plantand equipment or
intangible assets

534

286

820

221

1,042

Inter-segment net sales ortransfers
Total

Other items

Notes: 1

Adjustments are as follows.
(1) The adjustment of negative ¥2,751 million to segment profit includes corporate expenses of negative ¥2,751
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
assets of the Group (cash and deposits, investment securities, etc.) and assets pertaining to administrative
departments that do not belong to the reportable segments.
(3) The adjustment to depreciation consists of depreciation on assets that do not belong to the reportablesegments.
(4) The adjustment increase in property, plant and equipment and intangible assets consists of increases toassets that do not belong to the reportable segments.
2 For segment profit, the Group has adjusted operating profit on its consolidated statement of income.

15

Fiscal year ended March 31, 2022
(Millions of yen)
Reportable segments
Functional
pigments

Electronicmaterials

Total

Adjustments(Note 1)

Amount posted
onconsolidated
financialstatements(Note 2)

Net sales
Net sales to externalcustomers

13,562

21,77035,332–35,332

5

456

461

(461)

–

13,56822,22635,794(461)

35,332

Segment profit

2,124

3,285

5,410

(2,890)2,519

Segment assets

13,46918,35031,82019,472

51,292

Depreciation

270

245

515

172

687

Changes in property, plantand equipment or
intangible assets

219

334

553

216

770

Inter-segment net sales ortransfers
Total

Other items

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
assets of the Group (cash and deposits, investment securities, etc.) and assets pertaining to administrative
departments that do not belong to the reportable segments.
(3) The adjustment to depreciation consists of depreciation on assets that do not belong to the reportablesegments.
(4) The adjustment increase in property, plant and equipment and intangible assets consists of increases toassets that do not belong to the reportable segments.
2 For segment profit, the Group has adjusted operating profit on its consolidated statement of income.

16(Per-Share Information)
Fiscal year ended

Fiscal year ended

March 31, 2021

March 31, 20212

Net assets per share (Yen)

1,411.60

2,155.82

Earnings (loss) per share (Yen)(718.76)

540.59Diluted earnings per share (Yen)–

537.04

Notes: 1. Diluted earnings per share for the previous fiscal year has not been stated due to constituting net losses per share despite
the presence of dilutive shares.
2. 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, 2021
Earnings (loss) per share
Profit (loss) attributable to owners ofparent (Millions of yen)Amount not attributable to commonshareholders (Millions of yen)
Profit (loss) attributable to owners ofparent pertaining to common shares(Millions of yen)
Average number of common shares during
the period (Thousands of shares)
Diluted profit per share
Adjustment to profit attributable to ownersof parent (Millions of yen)
Increased number of common shares(Thousands of shares)[Number of which are share acquisitionrights (Thousands of shares)]

Overview of dilutive shares not included in
the calculation of diluted earnings per share
due to not being potentially dilutive

Fiscal year ended
March 31, 20212(4,142)

3,116

–

–

(4,142)

3,116

5,763

5,764

–

–

–

38

[–]

[38]

2nd Share Acquisition Rights based on
resolution of Board of Directors held on
June 26, 2015
Number of share acquisition rights: 227(common shares: 2,270 shares)
3rd Share Acquisition Rights based on
resolution of Board of Directors held on
June 29, 2016
Number of share acquisition rights: 329(common shares: 3,290 shares)
4th Share Acquisition Rights based on
resolution of Board of Directors held on
June 28, 2017
Number of share acquisition rights: 354(common shares: 3,540 shares)
5th Share Acquisition Rights based on
resolution of Board of Directors held on
June 27, 2018
Number of share acquisition rights: 418(common shares: 4,180 shares)
6th Share Acquisition Rights based on
resolution of Board of Directors held on
June 25, 2019
Number of share acquisition rights: 711(common shares: 7,110 shares)
7th Share Acquisition Rights based on
resolution of Board of Directors held on
June 25, 2020
Number of share acquisition rights: 1,093(common shares: 10,930 shares)17–

(Significant Subsequent Events)
Not applicable18