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 August 31, 2021
(Based on Japanese GAAP)
October 13, 2021
Company name:

TOUMEI CO., LTD.

Stock exchange listing: Tokyo, Nagoya
Stock code:
4439
URL
Representative:
Inquiries:

https://www.toumei.co.jp/CEODirector

Fumihiko Yamamoto

Makoto Sekiyama
General Manager of Administrative DivisionScheduled date of ordinary general meeting of shareholders:November 25, 2021
Scheduled date to file Securities Report:
Scheduled date to commence dividend payments:

November 26, 2021
November 26, 2021

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

Yes
Yes

TEL

059(330)2151(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended August 31, 2021 (from September 1, 2020 to August 31, 2021)(1) Consolidated operating resultsNet sales
Year ended August 31, 2021
Year ended August 31, 2020

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen%
392(53.0)452 (51.0)
277(54.7)
835
37.4
923
41.1
611
19.9

Millions of yen
13,027
11,517%
13.1
6.1

Earnings per share

Diluted earnings pershare

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
36.85
5.8
5.9
3.0
82.64
14.3
12.5
7.3Yen37.76
84.85

Year ended August 31, 2021
Year ended August 31, 2020
(2) Consolidated financial position

Total assets
As of August 31, 2021
As of August 31, 2020

Net assets

Equity ratio

Millions of yen
7,790
7,647

Millions of yen
4,882
4,669

Cash flows fromoperating activities
Millions of yen
(446)
396

Cash flows frominvesting activities
Millions of yen(36)
8

Net assets per share%
62.7
61.1

Yen
665.03637.25(3) Consolidated cash flows

Year ended August 31, 2021
Year ended August 31, 2020

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(368)
2,665
42
3,516

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

Year ended August 31, 2020
Year ended August 31, 2021
Year ending August 31, 2022
(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

––

10.00
11.00

10.00
11.00

7380

11.8
29.1

1.7
1.7–0.00–12.00

12.00

119.9

3. Forecast of consolidated financial results for the year ending August 31, 2022 (from September 1, 2021 to August 31, 2022)
Net sales
Millions of yen
Six months ending
February 28, 2022
Full year

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

7,578

26.4

139(37.2)

166(32.1)

79(49.9)

10.80

15,719

20.7

626

59.7

682

50.9

443

60.1

60.41

4. Notes(1) Changes in significant subsidiaries during the year ended August 31, 2021
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of August 31, 2021

7,341,900 shares As of August 31, 2020

7,327,500 shares

377 shares As of August 31, 2020

300 shares

Number of treasury shares at the end of the period
As of August 31, 2021
Average number of shares during the period
Year ended August 31, 2021

7,336,752 shares Year ended August 31, 2020

2

7,211,590 shares

Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of August 31, 2020

As of August 31, 2021

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

3,836,419
3,081,234

2,985,268
3,746,212

Merchandise and finished goods
Raw materials and supplies

5,620
30,864

4,769
118,849

Other
Allowance for doubtful accounts

91,738(32,684)

169,688(22,167)

7,013,194

7,002,620

209,701(94,741)

225,418(104,950)

Buildings and structures, net

114,960

120,468

Machinery, equipment and vehicles
Accumulated depreciation

25,654(18,219)

28,149(20,740)

7,435

7,409

79,062(52,987)

79,879(57,251)

26,07522,628Land

179,081

179,081

Total property, plant and equipment

327,552

329,587

Intangible assets

11,161

16,221

Investments and other assets
Investment securities

17,58623,766

Deferred tax assets
Other

55,198260,059

52,367
403,421

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net

Allowance for doubtful accounts(37,136)(37,136)

Total investments and other assets

295,707442,418

Total non-current assets
Total assets

3634,421

788,226

7,647,615

7,790,846

(Thousands of yen)
As of August 31, 2020

As of August 31, 2021

Liabilities
Current liabilities
Notes and accounts payable - trade

1,125,427

1,438,503

Short-term borrowings
Current portion of bonds payable

100,000
800,000

100,000–

Accounts payable - other
Income taxes payable

264,227
140,439

313,120
66,542

Provision for bonuses
Provision for sales promotion expenses

46,3992,649

56,7791,148

Other
Total current liabilities

145,046

76,1752,624,189

2,052,269

300,000
48,154800,000
50,754Non-current liabilities
Long-term borrowings
Asset retirement obligations
Other

6,015

5,520

354,169

856,275

2,978,359

2,908,544

Share capital
Capital surplus

605,155
595,155

607,690597,690

Retained earnings
Treasury shares

3,457,339(331)

3,661,087(415)

Total shareholders' equity

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

4,657,319

4,866,051

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

11,93716,251

Total accumulated other comprehensive income

11,937

16,251

4,669,256

4,882,302

7,647,615

7,790,846

Total net assets
Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended
August 31, 2020

Fiscal year ended
August 31, 2021

Net sales

11,517,190

13,027,005

Cost of sales

7,320,919

9,010,445

Gross profit

4,196,271

4,016,559

Selling, general and administrative expenses

3,360,485

3,623,954

835,786392,605

Operating profit
Non-operating income
Interest income

2,878

3,353

Dividend income
Gain on settlement of liabilities

7280,747

48
54,726

Gain on sale of investment securities
Other

29,99911,753–
9,748

Total non-operating income

125,451

67,876

Non-operating expenses
Interest expenses

8,825

7,621

Market change expenses
Other27,193
1,636

–
723

Total non-operating expenses

37,655

8,344

923,581452,137

Loss on retirement of non-current assets
Impairment losses

0–

–
7,221

Loss on cancellation of rental contracts

–

1,675

Total extraordinary losses

08,896

Profit before income taxes

923,581443,241

Income taxes - current

229,774

165,256

Ordinary profit
Extraordinary losses

Income taxes - deferred

81,880964

Total income taxes

311,655

166,221

Profit

611,926

277,019

Profit attributable to owners of parent

611,926

277,0195

Consolidated statements of comprehensive income(Thousands of yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Total other comprehensive income

Fiscal year ended

Fiscal year ended

August 31, 2020

August 31, 2021611,926

277,019(8,673)

4,313(8,673)

4,313

Comprehensive income

603,253

281,333

Comprehensive income attributable toComprehensive income attributable to owners of parent

603,253

281,333

6

Consolidated statements of changes in equity
Fiscal year ended August 31, 2020
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

519,992

509,992

85,16385,163Retained earnings

Total shareholders'equity

Treasury shares

2,845,412–

3,875,396

Changes during period
Issuance of new shares

170,327

Profit attributable to owners of parent

611,926

611,926

Purchase of treasury shares

(331)

(331)

Net changes in items other thanshareholders' equity
Total changes during period

85,16385,163611,926(331)

781,922

Balance at end of period

605,155

595,155

3,457,339(331)

4,657,319

Accumulated other comprehensive income

Balance at beginning of period

Valuation difference on
available-for-sale securities

Total accumulated othercomprehensive income

20,61020,610Total net assets
3,896,007

Changes during period
Issuance of new shares

170,327

Profit attributable to owners of parent

611,926

Purchase of treasury shares
Net changes in items other thanshareholders' equity(331)(8,673)(8,673)(8,673)

Total changes during period(8,673)(8,673)

773,249

Balance at end of period

11,937

11,937

4,669,256

7

Fiscal year ended August 31, 2021
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

605,155

595,155

2,534

2,534

Retained earnings

Treasury shares

3,457,339(331)

Total shareholders'equity
4,657,319

Changes during period
Issuance of new shares5,068

Dividends of surplus(73,272)(73,272)

Profit attributable to owners of parent

277,019

277,019

Purchase of treasury shares

(84)

(84)

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

2,534

2,534

203,747(84)

208,732

607,690597,690

3,661,087(415)

4,866,051

Accumulated other comprehensive income

Balance at beginning of period

Valuation difference on
available-for-sale securities

Total accumulated othercomprehensive income

11,937

11,937

Total net assets
4,669,256Changes during period
Issuance of new shares

5,068

Dividends of surplus(73,272)

Profit attributable to owners of parent

277,019

Purchase of treasury shares
Net changes in items other thanshareholders' equity

(84)
4,313

4,313

4,313

Total changes during period

4,313

4,313

213,045

Balance at end of period

16,251

16,251

4,882,302

8

Consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

August 31, 2020

August 31, 2021

923,581443,241Depreciation
Increase (decrease) in provision for bonuses

23,207(2,658)24,885
10,380

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for sales promotion expenses(1,556)(2,295)(10,516)(1,501)

Interest and dividend income
Gain on settlement of liabilities(2,950)(80,747)(3,401)(54,726)

Gain on sales of investment securities
Interest expenses(29,999)
8,825

–
7,621

Market change expenses
Loss on cancellation of rental contracts

27,193––
1,675

Loss on retirement of non-current assets
Impairment losses

0––
7,221

Decrease (increase) in trade receivables
Decrease (increase) in inventories(226,744)
160,819(664,977)(32,406)

Decrease (increase) in other current assets
Increase (decrease) in trade payables(2,540)(14,077)(82,198)
313,075

Increase (decrease) in accounts payable - other
Increase (decrease) in accrued consumption taxes(43,787)
27,50848,899(76,828)

Increase (decrease) in income taxes payable - factor based tax
Increase (decrease) in other current liabilities(10,670)(26,419)(4,342)
1,402

Other, net(22,701)(135,623)

Subtotal

703,986(208,118)Interest and dividends received

2,761

3,483

Interest paid
Income taxes paid

(9,851)(300,615)(6,688)(234,811)

Net cash provided by (used in) operating activities

396,281(446,134)(68,021)(68,021)

Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment

68,000(5,267)68,000(24,044)

Purchase of intangible assets
Proceeds from sale of investment securities(10,970)
30,000(6,177)–

Payment for guarantee deposits
Proceeds from guarantee deposits(3,925)10(7,808)
3,211

Other, net(1,774)(1,947)

Net cash provided by (used in) investing activities

8,052(36,787)

Cash flows from investing activities
Payments into time deposits

9(Thousands of yen)
Fiscal year ended

Fiscal year ended

August 31, 2020

August 31, 2021

Cash flows from financing activities
Proceeds from long-term borrowings

300,000

500,000

Redemption of bonds
Proceeds from issuance of shares(400,000)
169,731(800,000)
4,978

Payments for market change expenses
Dividends paid(27,193)––(73,143)

Other, net
Net cash provided by (used in) financing activities

(332)

(85)

42,204(368,250)

Net increase (decrease) in cash and cash equivalents

446,538(851,173)

Cash and cash equivalents at beginning of period

3,070,271

3,516,810

Cash and cash equivalents at end of period

3,516,810

2,665,637

10