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, 2023
(Based on Japanese GAAP)
August 8, 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 TomokawaDepartment
Scheduled date to file Quarterly Securities Report:

August 10, 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 three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023)(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, 2023
6,183 (36.3)(77)–711 (39.2)
666 (21.8)
Three months ended June 30, 2022
9,708
18.8
853
33.2
1,170
11.7
852
(9.8)
Note: Comprehensive income

Three months ended June 30, 2023:
Three months ended June 30, 2022:
Earnings per share

Three months ended June 30, 2023
Three months ended June 30, 2022

¥1,226 million¥1,703 million[(28.0)%][33.8%]

Diluted earnings per share

Yen
115.45147.92

Yen
114.66146.89(2) Consolidated financial position
Total assets
As of June 30, 2023
As of March 31, 2023
Reference:

EquityAs of June 30, 2023:
As of March 31, 2023:

Net assets

Millions of yen
52,24652,016Equity ratio

Millions of yen
17,79016,559

%
32.6
30.5

¥17,015 million¥15,842 million

2. Cash dividends
Annual dividends per share

Year ended March 31, 2023
Year ending March 31, 2024

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, 2024 (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, 2024 (from April 1, 2023 to March 31, 2024)
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

Net sales
Millions of yen
Six months ending
September 30, 2023
Full yearNotes:

12,500(33.4)(500)–400(82.5)

300(80.7)

51.97

29,000(17.0)

800(41.5)

1,500(55.2)

1,000(69.4)

173.23

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, 2023) for
information on revisions to forecast of consolidated financial results.

* Notes(1) Changes in significant subsidiaries during the three months ended June 30, 2023
(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:

No
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, 2023

6,099,192 shares

As of March 31, 2023

6,099,192 shares

326,556 shares

As of March 31, 2023

326,475 shares

Number of treasury shares at the end of the period
As of June 30, 2023

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended June 30, 2023

5,772,671 shares

Three months ended June 30, 2022

5,764,363 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 2 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 ............................ 2
2. Quarterly Consolidated Financial Statements and Significant Notes Thereto.............................................. 3(1) Consolidated Balance Sheets........................................................................................................................... 3(2) Consolidated Statements of Income (Cumulative) and Consolidated Statements of Comprehensive
Income (Cumulative) ....................................................................................................................................... 5
Consolidated Statements of Income (Cumulative)........................................................................................ 5
Consolidated Statements of Comprehensive Income (Cumulative) ............................................................ 6(3) Notes to Quarterly Consolidated Financial Statements ............................................................................... 7(Notes on Assumption of Going Concern) ..................................................................................................... 7(Notes When There Are Significant Changes in Amounts of Shareholders’ Equity) ................................. 7

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, 2023, there were signs of a gradual recovery in economic activity as restrictions on movement
due to the novel coronavirus (COVID-19) were relaxed and socioeconomic activity moved toward normality
particularly in terms of increasing flows of people and resurging inbound travel. However, the future remains
unclear due to factors that include the protracted war in Ukraine, surging prices worldwide, and risk ofdownturn in overseas economies as a result of tighter monetary policy in respective nations undertaken toaddress that scenario.
Under such conditions, the Group encountered challenges due to slow recovery of markets for magnetic
materials and other products, and effects of weak demand for ICT devices. In addition, net sales fell year onyear as a result of having transferred equity in Toda United Industrial (Zhejiang) Co., Ltd., a former
consolidated subsidiary, in December 2022.
The following is a summary for each segment.
For the functional pigments segment, growth fell short of that of the previous fiscal year despite the segmenthaving maintained consistent net sales with respect to materials for copiers and printers as well as materials forcatalysts. In addition, net sales fell year on year as a result of having transferred equity in Toda UnitedIndustrial (Zhejiang) Co., Ltd.
In the electronic materials segment, net sales increased from the previous fiscal year for bonded rare earthmagnet material, which possesses world-class magnetic properties and are mainly for automotive applications.
However, inventory adjustments have been persisting with respect to bonded ferrite magnet materials,
dielectric materials and other such products. Meanwhile, net sales decreased year on year amid a scenario
where growth in sales was not on par with that of the previous fiscal year at the Company’s consolidated
subsidiary that manufactures battery-related materials.
Turning to profit, operating profit declined year on year due to high levels of prices for raw materials andenergy relative to the previous fiscal year, in addition to the downturn in net sales.
For non-operating income and expenses, despite the Company having encountered factors with a positiveeffect on earnings such as strong revenues from affiliates accounted for using the equity method and a shift in
exchange rates to a weakening yen, ordinary profit and profit attributable to owners of parent decreased year onyear due to a downturn in operating profit.
As a result of the above, net sales came to ¥6,183 million (down 36.3% year on year), operating loss came to¥77 million (compared with operating profit of ¥853 million in the same period of the previous fiscal year),ordinary profit came to ¥711 million (down 39.2% year on year), and profit attributable to owners of parent
came to ¥666 million (down 21.8% year on year).
(2) Explanation of Financial Position
AssetsAssets as of June 30, 2023, came to ¥52,246 million, an increase of ¥230 million over the end of the previous
fiscal year. This was mainly due to increases of ¥432 million in raw materials and supplies, ¥362 million inproperty, plant and equipment, and ¥457 million in investments in capital of subsidiaries and associates, despite
decreases of ¥1,103 million in cash and deposits and ¥527 million in notes and accounts receivable - trade.
Liabilities
Liabilities as of June 30, 2023, came to ¥34,455 million, a decrease of ¥1,001 million over the end of theprevious fiscal year. This was mainly due to decreases of ¥657 million in notes and accounts payable - trade,and ¥232 million in provision for bonuses.
Net assets
Net assets as of June 30, 2023, came to ¥17,790 million, an increase of ¥1,231 million over the end of theprevious fiscal year. This was mainly due to ¥666 million in profit attributable to owners of parent, increases of¥198 million in valuation difference on available-for-sale securities, and ¥268 million in foreign currencytranslation adjustment.

1(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, 2023) for information on revisions to forecast of consolidated financial results.

22. Quarterly Consolidated Financial Statements and Significant Notes Thereto(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2023
AssetsCurrent assets
Cash and depositsNotes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
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
Other
Total intangible assets
Investments and other assets
Investment securities
Investments in capital of subsidiaries and associates
Other
Allowance for doubtful accounts
Total investments and other assetsTotal non-current assets
Total assets

3

As of June 30, 2023

8,476
7,607
4,581
2,018
3,654
2,136(9)28,465

7,373
7,080
4,584
2,219
4,086
2,356
(10)
27,689

1,975
1,687
6,326
1,019
508
11,515

2,120
2,215
6,330
658
552
11,877

2,355
133
2,489

2,335
138
2,474

2,709
6,300
539
(3)
9,545
23,55052,016

2,875
6,757
576
(3)
10,20624,55752,246

As of March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Long-term accounts payable - other
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
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
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

4(Millions of yen)
As of June 30, 2023

3,712
7,686
4,012
230
345
1,616
17,604

3,055
7,518
4,302
116
113
1,641
16,747

14,031
469
1,896
1,454
17,85235,456

14,077
479
1,866
1,284
17,70834,455

7,477
4,288
3,155
(1,468)13,453

7,477
4,288
3,822
(1,468)
14,119

688
1,368
332
2,389
86
630
16,55952,016

886
1,636
373
2,895
91
684
17,79052,246

(2) Consolidated Statements of Income (Cumulative) and Consolidated Statements of Comprehensive Income(Cumulative)
Consolidated Statements of Income (Cumulative)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Employees’ salaries
Provision for bonuses
Retirement benefit expenses
Research and development expenses
Other
Total selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Foreign exchange gains
OtherTotal non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on disposal of non-current assets
Gain on sale of investment securities
National subsidies
Compensation income
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Loss on sale of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent5

Three months ended
June 30, 2022
9,708
7,337
2,371

(Millions of yen)Three months ended
June 30, 2023
6,183
4,901
1,281

310
50
21309
826
1,517
853

298
51
21
373
614
1,359(77)

932
91
167
78
379

11
35
401
364
42
855

59
4
63
1,170

62
3
66
711

–
–
1
7
8

776
–
892

3–
3
1,174
108
77
186
988
136
852

70
7795
68
22
91
704
38
666

Consolidated Statements of Comprehensive Income (Cumulative)(Millions of yen)Three months ended

Three months ended

June 30, 2022
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted forusing equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

6

June 30, 2023
988

704

(59)
620
16

197
224
41

137

58

714
1,703

522
1,226

1,465
237

1,172
54

(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

7