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 Three Months Ended June 30, 2022
(Based on Japanese GAAP)
August 8, 2022
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 TomokawaDepartment
Scheduled date to file Quarterly Securities Report:

TEL +81-82-577-0055

August 10, 2022

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

Holding of quarterly financial results meeting:No(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the three months ended June 30, 2022 (from April 1, 2022 to June 30, 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%Three months ended June 30, 2022
9,708
18.8
853
33.2
1,170
11.7852(9.8)
Three months ended June 30, 2021
8,172
–
640
–
1,047
–
945
–
Note: Comprehensive income

Three months ended June 30, 2022:
Three months ended June 30, 2021:
Earnings per share

Three months ended June 30, 2022
Three months ended June 30, 2021

¥1,703 million¥1,273 million[33.8%][–%]

Diluted earnings per shareYen
147.92164.10

Yen146.89
163.21

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 three months ended June 30, 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 June 30, 2022
As of March 31, 2022
Reference:

EquityAs of June 30, 2022:
As of March 31, 2022:

Net assets

Millions of yen
53,63751,292Equity ratio

Millions of yen
15,665
13,958

%
25.9
24.2

¥13,892 million¥12,427 million

2. Cash dividends
Annual dividends per share

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

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-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: NoTotal

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)
Net sales
Millions of yen
Six months ending
September 30, 2022
Full year
Notes:

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

18,50015.7

1,100 (12.7)

1,600 (14.3)

1,000 (35.5)

173.4840,00013.2

1,600 (36.5)

2,500 (40.3)

1,500 (51.9)

260.22

1. Revisions to the consolidated financial results forecasts most recently announced: Yes
2. Please refer to “Notification of Revisions to Forecast of Financial Results” (in Japanese only) released today (August 8, 2022) for
information on revisions to forecast of consolidated financial results.

* Notes(1) Changes in significant subsidiaries during the three months ended June 30, 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 June 30, 2022

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

6,099,192 shares

334,983 shares As of March 31, 2022

334,712 shares

Number of treasury shares at the end of the period
As of June 30, 2022
Average number of shares during the period
Three months ended June 30, 2022

5,764,363 shares Three months ended June 30, 2021

5,763,291 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 are 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(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 three months
ended June 30, 2022, restrictions on movement imposed because of COVID-19 continued to loosen, and there
were signs that economic activity was normalizing. However, due to the risk of flareups in infections becauseof the appearance of new virus variants, the continuing war in Ukraine, hikes in the price of raw materials andenergy, sudden changes in exchange rates, and similar items, the future outlook is even more uncertain.
Under such conditions, during the three months under review, demand for various products were generally
firm, and sales were strong. Furthermore, net sales rose year on year for various reasons, including theweakening of the yen.
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, sales were strong, especially those of magnetic materials, a core business,despite delays in orders for some products as a result of the global shortage of semiconductors and otherdevelopments. In particular, there was an increase in demand for bonded rare earth magnet material, which
possesses world-class magnetic properties, because it is mainly used in car motors. Additionally, Jiangmen &Partner’s Magnetic Product Co., Ltd., which was turned into a subsidiary on July 1, 2021, was added to thescope of consolidation (included in statement of income starting from the third quarter of the previous fiscal
year). For these reasons, net sales rose year on year.
Turning to profit, despite the impact of increases in the cost of raw materials and energy and transport
expenses, marginal profit rose as net sales increased.
Turning to non-operating income and expenses, foreign exchange gains of ¥167 million were recorded as aresult of the sudden weakening of the yen, but revenues from affiliates accounted for using the equity methodfell year on year.
As a result of the above, net sales came to ¥9,708 million (up 18.8% year on year), operating profit, ¥853
million (up 33.2% year on year), ordinary profit, ¥1,170 million (up 11.7% year on year), and profit
attributable to owners of parent, ¥852 million (down 9.8% year on year).
(2) Explanation of Financial Position
AssetsAssets as of June 30, 2022, came to ¥53,637 million, an increase of ¥2,345 million over the end of the previous
fiscal year. This was mainly due to an increase of ¥673 million in cash and deposits, an increase of ¥1,378
million in raw materials and supplies, an increase of ¥347 million in property, plant and equipment, and anincrease of ¥285 million in other under investments and other assets despite a decrease of ¥436 million in notes
and accounts receivable - trade.
Liabilities
Liabilities as of June 30, 2022, came to ¥37,971 million, an increase of ¥638 million over the end of theprevious fiscal year. This was mainly due to an increase of ¥794 million in borrowings despite a decrease of¥184 in provision for bonuses.
Net assets
Net assets as of June 30, 2022, came to ¥15,665 million, an increase of ¥1,707 million over the end of theprevious fiscal year. This was mainly due to ¥852 million in profit attributable to owners of parent, an increaseof ¥656 million in foreign currency translation adjustment, and an increase of ¥234 million in non-controllinginterests.
(3) Explanation of Forecast of Financial Results and Other Forward-looking Statements
Please refer to “Notification of Revisions to Forecast of Financial Results” (in Japanese only) released today(August 8, 2022) 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 June 30, 2022

AssetsCurrent assets
Cash and deposits

7,962

8,635

Notes and accounts receivable - trade

10,524

10,088Merchandise and finished goods

4,423

4,201

Work in process

1,973

2,117

Raw materials and supplies

3,023

4,401

Other

1,480

1,636

(6)

(6)

29,381

31,074

Buildings and structures, net

2,324

2,421

Machinery, equipment and vehicles, net

1,707

1,878

Land

6,320

6,324

224

287

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipmentConstruction in progress
Other, net
Total property, plant and equipment

783

797

11,361

11,708

1,992

2,069

Intangible assets
Goodwill
Other

154

149

2,147

2,218

Investment securities

2,607

2,555

Other

5,797

6,082

(3)

(3)

Total intangible assets
Investments and other assets

Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

2

8,401

8,635

21,91022,562

51,292

53,637

(Millions of yen)
As of March 31, 2022

As of June 30, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade

5,714

5,597

Short-term borrowings

8,601

8,639

Current portion of long-term borrowings

3,278

3,257

Income taxes payable

278

221

Provision for bonuses

295

111

Provision for environmental measures

67

74

Provision for loss on factory closings

11–

Other

2,029

2,073

Total current liabilities

20,276

19,976

12,782

13,559Non-current liabilities
Long-term borrowings
Long-term accounts payable - other

940

1,003

Retirement benefit liability

1,912

1,889

Other

1,421

1,543

Total non-current liabilities

17,05617,99537,333

37,971

Share capital

7,477

7,477

Capital surplus

4,358

4,358

Total liabilities
Net assets
Shareholders’ equity

Retained earnings

(112)

739

Treasury shares(1,507)(1,508)

Total shareholders’ equity

10,215

11,067

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income

633

573

1,320

1,976

258

275

2,211

2,825

Share acquisition rights

8895

Non-controlling interests

1,443

1,677

Total net assets

13,95815,66551,292

53,637

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)Three months ended
June 30, 2021

Three months ended
June 30, 2022

Net sales

8,172

9,708

Cost of sales

6,290

7,337

Gross profit

1,882

2,371

Employees’ salaries

292

310

Research and development expenses

269

309

Selling, general and administrative expenses

OtherTotal selling, general and administrative expenses
Operating profit

679

898

1,241

1,517

640

853

Non-operating income
Interest income

99

Dividend income

2132

Share of profit of entities accounted for using equity method

390

91

Subsidies for employment adjustment

19–

Foreign exchange gains

–

167

Other

54

78

Total non-operating income

497

379

Interest expenses

46

59

Foreign exchange losses

12–

Other

31

4

Non-operating expenses

Total non-operating expenses

90

63

1,047

1,170

Gain on disposal of non-current assets

0–Gain on sale of investment securities

39–

National subsidies

20

1Compensation income–7

Total extraordinary income

60

8Loss on disposal of non-current assets

93

Loss on tax purpose reduction entry of non-current assets

16–

Total extraordinary losses

25

3

1,082

1,174

62

108

Ordinary profit
Extraordinary income

Extraordinary losses

Profit before income taxes
Income taxes - current
Income taxes - deferred

4477

Total income taxes

106

186

Profit976

988

Profit attributable to non-controlling interests

30

136

Profit attributable to owners of parent

945

852

4Consolidated Statements of Comprehensive Income (Cumulative)(Millions of yen)Three months ended
June 30, 2021

Three months ended
June 30, 2022
976

Profit988

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

(163)

(59)

Foreign currency translation adjustment

339

620

316117137

Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted
for using equity method

296

714

1,273

1,703

Comprehensive income attributable to owners of parent

1,180

1,465

Comprehensive income attributable to non-controllinginterests

92237

Total other comprehensive income
Comprehensive incomeComprehensive income attributable to5

(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(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