TERAOKA SEISAKUSHO CO., LTD.

INTERIM REPORTThe six-month period ended September 30, 2020

Teraoka Seisakusho Co., Ltd. and Consolidated Subsidiaries

Consolidated Balance Sheets
September 30, 2020 and March 31, 2020

Thousands ofU.S. dollars
September 30

Millions of yen
September 30

March 31ASSETS
Current Assets:
Cash and time deposits¥8,959¥9,807$84,670

Notes and accounts receivable - trade

4,753

5,708

44,924

937

1,035

8,852

(8)

(8)

(74)

Merchandise and finished goods

1,878

1,813

17,746Work in process

1,102

1,121

10,411Raw materials and supplies

854

912

8,069

Other388

458

3,674

18,863

20,846

178,272

Buildings and structures

12,018

11,940113,585

Machinery, equipment and vehicle

20,343

22,335

192,258

Land

4,024

4,034

38,030

Leased assets

269

269

2,547

Construction in progress

954

893

9,019

2,233

2,248

21,09939,841

41,719376,538

Less: Accumulated depreciation(28,499)(30,396)(269,342)

Property, plant and equipment, net

11,342

11,323

107,196

89

111

840

Investments in securities

2,778

2,600

26,256

Deferred income taxes

131

97

1,242

Other145

166

1,363

(3)(3)

(28)

3,051

2,860

28,833¥33,345¥35,140$315,141

Electronically recorded monetary claims - operating
Less: Allowance for doubtful accounts

Total current assets
Property, Plant and Equipment:

OtherIntangible Assets
Investments and Other Assets:

Less: Allowance for doubtful accounts
Total investments and other assets
Total assets

The accompanying notes to consolidated financial statements are an integral part of these statements.

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Thousands ofU.S. dollars

Millions of yen

September 30

March 31

September 30LIABILITIES AND STOCKHOLDERS' EQUITYCurrent Liabilities:
Notes and accounts payable - trade¥1,353¥1,298$12,791

Electronically recorded obligations - operating

1,894

2,583

17,896

Lease obligations

1919183

Accrued income taxes

43

53

406

Accrued expenses

430

508

4,068

1,047

1,659

9,889

4,786

6,120

45,233

Lease obligations

200

211

1,895

Deferred liabilities taxes

34

38

322

Provision for environmental measures

316

316

2,982

Net defined benefit liability

88104

832

Asset retirement obligations

304

304

2,875

Long-term accounts payable - other57

57

536

Other

59

51

553

Total long-term liabilities

1,058

1,081

9,995

Total liabilities

5,844

7,201

55,228

5,057

5,057

47,794

Additional paid-in capital

4,644

4,644

43,890Retained earnings

17,424

17,935

164,677

Less: Treasury stock, at cost

(463)

(462)

(4,373)

Total stockholders' equity

26,662

27,174

251,988

Unrealized gains on securities

895

764

8,458

Foreign currency translation adjustments

55

137

520

Remeasurements of defined benefit plans

(111)

(136)

(1,053)839

7657,925

27,501¥33,345

27,939¥35,140

259,913$315,141

Other
Total current liabilities
Long-term Liabilities:

NET ASSETSStockholders' Equity:
Common stock:
Authorized: 80,000,000 shares
Issued: 26,687,955 shares as of September 30, 2020 and
26,687,955 shares as of March 31, 2020, respectively

Accumulated other comprehensive income

Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

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Teraoka Seisakusho Co., Ltd. and Consolidated Subsidiaries

Consolidated Statements of Income
For the six-month period ended September 30, 2020 and 2019
Thousands ofU.S. dollars

Millions of yen

2020¥9,672
7,709
1,963
2,375
(412)

2019
¥11,299
8,574
2,725
2,648
77

2020
$91,40972,856
18,55322,450(3,897)648(109)(21)－
19(57)

651
(157)
(0)
248
15
163

60
451
(1,034)(198)－
185(536)

(469)

240

(4,433)

Income taxes
Net income(84)(¥385)

128
¥112

(798)
($3,635)

Profit attributable to non-controlling interests
Profit attributable to owners of parent－(385)－112－(3,635)Yen(¥15.18)
3.00

Yen¥4.41
5.00

US Dollars($0.14)
0.03

Net Sales
Cost of Sales
Gross profit
Selling, General and Administrative Expenses
Operating income
Other Income and Expenses:
Interest income
Dividend income
Foreign exchange gains (losses), net
Loss on retirement of non-current assets
Gain on sales of investment securities
Other, net

Income before income taxes

Per Share of Common Stock:
Net income
Cash dividends

The accompanying notes to consolidated financial statements are an integral part of these statements.

3Teraoka Seisakusho Co., Ltd. and Consolidated Subsidiaries

Consolidated Statements of Comprehensive Income
For the six-month period ended September 30, 2020 and 2019
Thousands ofU.S. dollars

Millions of yen

Net income
Other Comprehensive Income
Unrealized gains on securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive Income
Total comprehensive income attributable to:Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

2020(¥385)

2019
¥112

2020
($3,635)

131
(83)
2573
(¥312)(295)(176)
1(470)(¥358)

1,238(781)238
695($2,940)(¥312)－(¥358)－($2,940)－The accompanying notes to consolidated financial statements are an integral part of these statements.

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Teraoka Seisakusho Co., Ltd. and Consolidated Subsidiaries

Consolidated Statements of Cash Flows
For the six-month period ended September 30, 2020 and 2019
Thousands ofU.S. dollars

Millions of yen

2020
Operating Activities:
Income before income taxes
Adjustments to reconcile net income to net cash provided byoperating activities:
Depreciation and amortization
Loss on retirement of non-current assets
Loss (gain) on sales of investment securities
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in net defined benefit liability
Interest and dividends income
Foreign exchange losses (gains)
Changes in assets and liabilities:(Increase) decrease in notes and accounts receivable(Increase) decrease in inventories
Increase (decrease) in notes and accounts payable
Other, net
SubtotalInterest and dividends income received
Income taxes (paid) refund
Net cash provided by operating activities

20192020(¥469)¥240($4,433)

409
21－－20(54)934780(248)
(0)
(3)
(57)
100

3,870
198－－
188
(511)
878

1,044
0(627)
(218)
219
54
(17)
256

343
223
80(111)
1,045
57
(155)
947

9,870
2(5,929)(2,060)
2,073
511
(164)
2,420

Investing Activities:
Purchase of property, plant and equipment
Payments for retirement of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Decrease (increase) in time deposits
Net cash used in investing activities

(916)
(10)
(2)
(1)
－(55)
(984)

(653)
－(24)
(2)
286
(111)
(504)

(8,658)
(99)
(15)
(13)
－(521)(9,306)

Financing Activities:
Dividends paid
Payment for acquisition of treasury stock
Other, net
Net cash used in financing activities

(127)
(0)
(10)
(137)

(127)
(0)
(9)
(136)

(1,197)(0)(92)(1,289)

(24)
(889)
9,192
¥8,303

(56)
251
8,960
¥9,211(229)(8,404)86,873$78,469

Effect of Exchange Rate Change on Cash and Cash Equivalents
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Period
Cash and Cash Equivalents at End of Period

The accompanying notes to consolidated financial statements are an integral part of these statements.

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Teraoka Seisakusho Co., Ltd. and Consolidated Subsidiaries

Notes to Consolidated Financial Statements
1. The translation of Yen amounts into U.S. dollars is included solely for the convenience of readers outside Japan,
using the prevailing exchange rate at September 30, 2020, which was ¥105.81 to U.S.$1.
2. Consolidated subsidiaries
Shin-ei Shoji Co., Ltd.
Teraoka Seisakusho (Hong Kong) Co., Ltd.
Teraoka Seisakusho (Shanghai) Co., Ltd.
Teraoka Seisakusho (Shenzhen) Co., Ltd.
PT. Teraoka Seisakusho Indonesia
3. Contingent liabilities in respect of trade notes and export bills discounted with banks with recourse in the ordinary
course of business at September 30, 2020 and 2019, amounted to ¥9million (US$ 84 thousand) and ¥4 million
respectively.

Corporate Information(as of September 30, 2020)

Head Office

4-22, Hiromachi 1-chome
Shinagawa-ku, Tokyo 140-8711, Japan
Tel: 81-3-3491-1141
Fax: 81-3-3491-1143

FoundedFebruary 11, 1921

Paid-in Capital¥5,057 millionStockholders

3,628

Stock Listing

Tokyo Stock Exchange, 2nd Section

Transfer Agency

Mitsubishi UFJ Trust and Banking Corporation
4-5, Marunouchi 1-chome
Chiyoda-ku, Tokyo 100-8212, Japan

Employees

540（Consolidated:730）

Branch Offices

Tokyo, Osaka, Nagoya, and Seoul

Representative Office

TaipeiR&D CenterTokyo

Factories

Ibaraki, Sano, Kannami

Websitehttps://www.teraokatape.co.jp

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