Consolidated Financial Results for the Fiscal Year Ended March 31, 2021(J-GAAP)May 17, 2021
Company name: T.RAD Co., Ltd.
Listing: Tokyo Stock Exchange, First Section
Code No.:
7236
URL: http://www.trad.co.jp
Representative: Tomio Miyazaki, President & COO
Contact:
Norio Kanai, Managing Director & CFO
Tel:+81-3-3373-1101
Scheduled date of the Ordinary General Meeting of Shareholders: June 29, 2021
Scheduled date of filing of securities report:
June 29, 2021
Scheduled date of start of dividend payments:―
Supplemental materials prepared for consolidated financial results: None
Briefing on consolidated financial results: Yes(Amounts less than one million yen have been truncated)

1. Consolidated Financial Performance for the Fiscal Year Ended March 31, 2021
(April 1, 2020 to March 31, 2021)(1) Consolidated operating performance(Percentage figures indicate year-on-year change)
Net sales

Operating income

Millions of yen% Millions of yen

Fiscal year ended
113,046 -13.4
1,264
March 31, 2021
Fiscal year ended
130,524-4.1
2,843
March 31, 2020
Note: Comprehensive income
Fiscal year ended March 31, 2021: ¥ －954 million
Fiscal year ended March 31, 2020: ¥ 910 million
Net income per
share

Ordinary income% Millions of yen

Profit attributable toowners of parent% Millions of yen
%

-55.5

1,540

-46.6

(1,239)

―

-44.2

2,883

-48.3

1,435

-17.3

(―%)
(―%)

Diluted net
Ordinary income Operating income
Return on
income per share shareholders’ equity
to total assets
to net sales

Yen

Yen

Fiscal year ended(171.62)―
March 31, 2021
Fiscal year ended
194.28―March 31, 2020
Reference: Equity earnings (losses) of affiliates
Fiscal year ended March 31, 2021: ¥ －142 million
Fiscal year ended March 31, 2020: ¥ －52 million

%

%

%

-3.0

1.8

1.1

3.3

3.2

2.2

(2) Consolidated financial position
Total assets
Millions of yen

Net assets

Equity ratio

Net assets per share

Millions of yen%

Yen

43,21847.3

5,673.72

44,84648.1

5,916.09

Cash flows fromoperating activities

Cash flows frominvestment activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

7,475(5,840)(588)

14,614

3,093(1,778)(1,357)

13,724

Fiscal year ended
86,800March 31, 2021
Fiscal year ended
88,493
March 31, 2020
Reference: Shareholders’ equity
As of March 31, 2021: ¥41,048 million
As of March 31, 2020: ¥42,590 million(3) Consolidated cash flows

Fiscal year ended
March 31, 2021
Fiscal year ended
March 31, 2020

1

2. Dividends
Dividends per Share
Year2Q
3Q
End

1Q

Fiscal year ended
March 31, 2020
Fiscal year ended
March 31, 2021
Fiscal year ending
March 31, 2022
(Forecast)

Total

Total Dividends
Paid (Annual)(Consolidated)

Payout Ratio

Dividends per
Net Assets(Consolidated)

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

―

40.00

―

50.00

90.00

648

45.2

1.6

―

0.00

―

0.00

0.00

―

―

―

―

40.00

―

50.00

90.00

24.1

3. Forecast of Consolidated Financial Performance for the Fiscal Year Ending March 31, 2022
(April 1, 2021 to March 31, 2022)(Percentage figures indicate changes from the same period of the previous year)Net

Net sales

Operating income

Ordinary income

Profit attributable toincome perowners of parent%

Millions ofyen%Millions of
yen

%

Yen

share

Millions ofyen%Millions ofyen

66,200

35.7

2,700

265.2

2,700

263.9

1,600

164.8

221.15

134,900

19.3

5,200

311.5

5,000

224.5

2,700

317.8

373.19nd

2 Quarter ending
September 30, 2021
Fiscal year ending
March 31, 2022

4. Other(1) Changes in significant subsidiaries during the period (changes in specific subsidiaries resulting in changes inthe scope of consolidation): None
(2) Changes in accounting principles, procedures, presentation methods
1) Changes associated with revision of accounting standards: None
2) Changes other than 1): None
3) Changes accounting estimation procedures: None
4) Changes in presentation methods: None
(3) Number of shares issued and outstanding (common stock)1) Number of shares issued and outstanding at end of year (including treasury stock)
As of March 31, 2021: 8,380,711 shares
As of March 31, 2020: 8,344,405 shares
2) Number of shares of treasury stock at end of period
As of March 31, 2021: 1,145,779 shares
As of March 31, 2020: 1,145,320 shares
3) Average number of shares outstanding during the period
Fiscal year ended March 31, 2021: 7,223,025 sharesFiscal year ended March 31, 2020: 7,390,393 shares

2

(Reference) Summary of Non-consolidated Financial Performance
1. Non-consolidated Financial Performance for Fiscal Year Ended March 31, 2021
(April 1, 2020 to March 31, 2021)(1) Non-consolidated operating performance(Percentage figures indicate year-on-year change)
Net sales

Operating income

Millions of yen%

56,27863,484

Fiscal year ended
March 31, 2021
Fiscal year ended
March 31, 2020

Millions of yen

Net income

Millions of yen%

Millions of yen

%

-11.4

(515) -14.5

2,934

3.0

(679)

―

-5.0

(602) -191.5

2,847

-19.1

2,735

388.2

Diluted net
income per share

Net income per share
Fiscal year ended
March 31, 2021
Fiscal year ended
March 31, 2020

Ordinary income
%

Yen

Yen

(94.10)―370.12―(2) Non-consolidated Financial Position
Total assets

Net assets

Millions of yen

Equity ratio

Net assets per share

Millions of yen%

Yen

30,34455.5

4,194.13

31,32855.6

4,351.70

Fiscal year ended
54,645
March 31, 2021
Fiscal year ended
56,332
March 31, 2020
Reference: Shareholders’ equity
As of March 31, 2021: ¥30,344 million
As of March 31, 2020: ¥31,328 million

2. Forecast of Non-Consolidated Financial Performance for the Fiscal Year Ending March 31, 2022
(April 1, 2021 to March 31, 2022)(Percentage figures indicate changes from the same period of the previous year)
Net sales

2nd Quarter ending
September 30, 2021
Fiscal year ending
March 31, 2022

Operating income

Ordinary income

Net
income pershare

Net income

Millions ofyen%Millions ofyen%Millions ofyen%Millions of
yen

%

Yen

32,900

37.4

0

100.0

1,500

426.1

1,000

170.9

137.8467,300

19.6

100

119.4

3,200

9.1

2,200

424.0

304.08* The consolidated financial results presented herein are not subject to the audit procedures by certified public
accountant or audit firm.
* Explanations for proper use of forecasts and other specific affairs
The forward-looking statement such as forecast of financial performance etc. described in this report basedon information currently available and certain assumptions judged to be reasonable. Actual performance
may differ significantly from these projections due to various factors.

3

Table of Contents
1. Business Results and Qualitative Information for the Fiscal Year Ended March 31, 2021 ························· 5(1) General overview of financial performance ·········································································· 5(2) General overview of Consolidated financial position ······························································· 6
2. Basic Concept Behind the Selection of Accounting Standards ························································· 7
3. Consolidated Financial Statements and main notes ······································································ 8(1) Consolidated balance sheets ···························································································· 8(2) Consolidated statements of income and consolidated statement of comprehensive income ················ 10(Consolidated statements of income) ·············································································· 10(Consolidated statement of comprehensive income) ···························································· 12(3) Consolidated statements of changes in net assets ································································· 13(4) Consolidated statements of cash flows ·············································································· 15(5) Notes concerning consolidated financial statement ······························································· 17(Going concern assumptions) ························································································ 17(Notes in the event of significant changes in shareholders’ equity)············································· 17(Consolidated statements of income)················································································ 18(Additional information) ······························································································ 19(Segment information) ································································································ 20(Supplementary information) ························································································· 23(Per share information) ································································································ 24(Omitted disclosure) ··································································································· 24(Significant subsequent events) ······················································································ 24
4. Non-Consolidated Financial Statements and main notes ······························································ 25(1) Non-consolidated balance sheets ···················································································· 25(2) Non-consolidated statements of income ············································································ 28(3) Non-consolidated statements of changes in net assets ···························································· 30(4) Notes concerning non-consolidated financial statement·························································· 32(Going concern assumptions) ························································································ 32(Notes in the event of significant changes in shareholders’ equity)············································· 32(Additional information) ······························································································ 32(Significant subsequent events) ······················································································ 32

41. Business Results and Qualitative Information for the Fiscal Year Ended March 31, 2021
(1) General overview of financial performance
General overview
In the economic environment of the consolidated fiscal year under review, the global economy deteriorated significantly
due to the spread of novel coronavirus infections. The future business condition depends on the prevalence of the infectious
disease. Therefore, there is concern that uncertainty about the future will continue.
Under the circumstances, the net sales of the T.RAD Group (on a foreign currency basis) decreased from the same
period of the previous year except Europe, China and Other(including elimination). The profit attributable to owner of parent
decreased from the same period of the previous year due to impairment loss on tangible fixed assets due to a decline inprofitability of the U.S. subsidiary.
As a result, net sales during the consolidated fiscal year under review decreased by 17,478 million yen from theprevious fiscal year, amounting to 113,046 million yen (down 13.4% year on year), operating income decreased by 1,579
million yen, amounting to 1,264 million yen (down 55.5% year on year) and ordinary income decreased by 1,343 million
yen, amounting to 1,540 million yen (down 46.6% year on year). Loss attributable to owners of parent of 1,239 million yen
was posted, worsening by 2,675 million yen year on year.
The segment results are as follows.
The book-closing date for the consolidated subsidiaries for the consolidated fiscal year under review is December 31. In
preparing the consolidated financial statements, the financial statements as of, and for one year period ended on this datewere used. With respect to important transactions conducted during the period between this date and the book-closing
date for consolidated accounting, we have made adjustments as necessary for consolidated accounting. The segments
relevant to such adjustments are the United States, Europe, Asia and China.
Domestic subsidiaries have the same settlement date that coincides with the last day of the consolidated fiscal year. The
corresponding segment is Other.
Net SalesJapan
UnitedStatesEurope
Asia
China
Other
(including
elimination)
Total

Operating Income (Loss)

Increase/
Decrease

Percentagechange(on a foreign
currency basis)*

Fiscal year
ended March
31, 2020

Fiscal year
ended March
31, 2021

Increase/
Decrease

Percentagechange(on a foreign
currency basis)*(Millions of yen)

(Millions of yen)(%)

(Millions of yen)

(Millions of yen)

(Millions of yen)(%)

56,63950,177-6,462

-11.4

(603)

(506)

96

16.1

31,04023,567-7,473

-19.7

(892)

(1,938)-1,045-129.82,928
17,73921,211

2,982
11,774
23,46554-5,965
2,254

6.8
-28.3
8.2

(1,017)
2,176
2,769

(335)
1,166
2,956

682
-1,009
186

66.8
-43.2
5.3

964

1,078

114

13.0

411

(78)

-489

-119.1

Fiscal year
ended March
31, 2020

Fiscal year
ended March
31, 2021(Millions of yen)

130,524
113,046-17,478
-11.6
2,843
1,264
-15,799-55.1*The percentage changes (on a foreign currency basis) in the chart are the percentage changes after correcting fordifferences arising from fluctuations in the foreign exchange rates applicable to overseas net sales.
(i) Japan
Net sales of products for automobile industry and construction industrial machines declined sharply from the previous fiscal
year due to a decrease in sales by major customers in line with the spread of novel coronavirus infections. As a result, thenet sales in the Japan segment decreased by 6,462 million yen, resulting in 50,177 million yen.
Operating loss of 506 million yen was posted, improved by 96 million yen from the same period of the previous year,
covering decrease of net sales by reducing fixed costs, such as personnel expenses and transportation expenses etc.
(ii) United States
Net sales of products for automobile industry and construction industrial machines declined sharply from the previous fiscal
year due to a decrease in sales by major customers as the novel coronavirus infection spread. As a result, the net sales in the
United States segment decreased by 7,473 million yen from the same period of the previous year, resulting in 23,567
million yen. On a foreign currency basis, it decreased by 19.7%.
Operating loss of 1,938 million yen was posted, worsening by 1,045 million yen from the same period of the previous
year, due to the effect of net sales declined sharply etc. On a foreign currency basis, it decreased by 129.8%.

5

(iii) Europe
The net sales of products for the automobile industry increased from the previous fiscal year due to an increase of net salesof models for which orders were newly received in Czech Republic and Russia. As a result, the net sales in the Europe
segment increased by 54 million yen from the same period of the previous year, resulting in 2,982 million yen. On a foreign
currency basis, it increased by 6.8%.
Operating loss of 335 million yen was posted, improved by 682 million yen from the same period of the previous year,
due to the stable production of newly ordered models in the Czech Republic etc. On a foreign currency basis, it increased
by 66.8%.
(iv) Asia
The net sales of products for the automobile industry declined sharply from the previous fiscal year due to a decrease insales by major customers as the novel coronavirus infection spread in Thailand, Indonesia and Vietnam. As a result, the net
sales in the Asia segment decreased by 5,965 million yen from the same period of the previous year, resulting in 11,774
million yen. On a foreign currency basis, it decreased by 28.3%.
Operating income decreased by 1,009 million yen from the same period of the previous year due to the effect of net
sales declined sharply etc., resulting in 1,166 million yen. On a foreign currency basis, it decreased by 43.2%.
(v) China
Net sales of products for automobile industry and construction industrial machines increased from the previous fiscal year
due to recovered from the impact of the spread of novel coronavirus ahead of other countries. As a result, the net sale in the
China segment increased by 2,254 million yen from the same period of the previous year, resulting in 23,465 million yen.
On a foreign currency basis, it increased by 8.2%.
The operating income increased by 186 million yen from the same period of the previous year, resulting in 2,956
million yen. On a foreign currency basis, it increased by 5.3%.
Outlook for the fiscal year ending March 31, 2022
Regarding the outlook for the fiscal year ending March 31, 2022 of the T.RAD group, by reflecting the recovery of theworld economy from the COVID-19 pandemic, our net sales are expected to increase in all regions, including the UnitedStates and Asia, which had been sluggish in the current consolidated fiscal year. Simultaneously, our profits are expected
to improve significantly due to the reaction to the impairment loss of the U.S. subsidiary.
Therefore, we forecasts the following consolidated financial performance for the fiscal year ending March 31, 2022:
net sales of 134,900 million yen (up 19% year on year), operating income of 5,200 million yen (up 311% year on year),ordinary income of 5,000 million yen (up 224% year on year), and profit attributable to owners of parent of 2,700 million
yen (up 317% year on year).
As for the profit distribution for the fiscal year ending March 31 2022, we anticipate a dividend resumption of 90 yen
per share, with an interim dividend of 40 yen and a year-end dividend of 50 yen, due to the above recovery in businessperformance.
(2) General overview of consolidated financial position
1) Assets, liabilities and net assets
Total assets at the end of the consolidated fiscal year under review resulted in 86,800 million yen (down 1,692 million
yen from the end of the previous fiscal year) due to the decrease of inventories and tangible fixed assets etc.
Liabilities resulted in 43,582 million yen (down 63 million yen).
Net assets resulted in 43,218 million yen (down 1,628 million yen) due to the decreases of retained earnings etc.
2) Cash flows
The increasing and decreasing factors of each cash flow in the consolidated fiscal year under review are as follows.
Net cash provided by operating activities was 7,475 million yen, a decrease of 4,382 million yen year on year due to theincrease of accounts payable-trade.
Net cash used by investing activities was 5,840 million yen, an increase of 4,061 million yen year on year due to thedecrease of sales of investment securities.
As a result, the free cash flow, which is the sum of the net cash provided by operating activities and used in investing
activities, amounted to 1,635 million yen (an increase of 320 million yen year-on-year).
Net cash used in financing activities was 588 million yen, an increase of 769 million yen year on year.

62. Basic Concept Behind the Selection of Accounting Standards
In order to ensure comparability between companies and over time, the T.RAD Group, which consists of T.RAD Co.,
Ltd. (the “Company”), prepares the Company’s consolidated financial statements based on the “Ordinance on
Terminology, Forms, and Preparation Methods of Consolidated Financial Statements (except Chapters 7 and 8)”(Ordinance of the Ministry of Finance No. 28 of 1976).
Please note that, in view of domestic and overseas circumstances, the Company intends to respond appropriately to theapplication of international accounting standards.

7

3．Consolidated Financial Statements and main notes(1) Consolidated balance sheets(Millions of yen)
FY2020FY2019As of March 31, 2020

As of March 31, 2021

AmountAmount(Assets)
Current assets
Cash and deposits

13,41914,403

Notes and accounts receivable-trade22,274

24,145

Electronically recorded monetary claims-operating

3,873

3,025

Short-term investment securities

499

489

Merchandise and finished goods

3,864

2,962

Work in process

741

523

Raw materials and supplies

5,725

5,290

Others

2,603

2,650

Allowance for doubtful accounts

(73)

(165)

52,92753,326

Total current assets
Noncurrent assets
Tangible fixed assets
Buildings and structures

21,25421,001

Accumulated depreciation(14,753)(15,156)

Building and structures, net

6,501

5,844

Machinery, equipment and vehicles

52,01452,155

Accumulated depreciation(36,326)(37,618)

Machinery, equipment and vehicles, net

15,687

14,537

Land

2,374

2,344

Lease assets

757

746

Accumulated depreciation

(230)

(321)

Lease assets, net

526

424

Construction in progress

4,104

3,642

Other tangible fixed assets

29,90530,475

Accumulated depreciation(27,774)(28,591)

Other tangible fixed assets, net

2,131

1,883

Total tangible fixed assets

31,326

28,676

111

11

Other intangible assets

1,173

1,222

Total intangible assets

1,284

1,234

Investment securities

2,206

2,009

Net defined benefit asset－

848

Long-term loans receivable from employees－

0Intangible assets
Goodwill

Investments and other assets

Deferred tax assets

78

89

Others681

628

Allowance for doubtful accounts

(13)

(13)

Total investments and other assets

2,953

3,563

Total noncurrent assets

35,56533,47488,49386,800Total assets

8

(Millions of yen)
FY2020FY2019As of March 31, 2020

As of March 31, 2021

AmountAmount(Liabilities)
Current liabilities
Notes and accounts payable-trade12,14913,074

Electronically recorded obligations - operating

3,414

3,295

Short-term loans payable

6,205

10,675

Lease obligations

611

444

Income taxes payable

791

484

Accrued expenses

2,779

2,628

Provision for bonuses

1,282

1,116

Provision for directors’ bonuses

43－

Provision for product warranties

181

578

Provision for shareholders benefit program

39－

Provision for loss on order received

92

148

Electronically recorded obligations - non-operating

384

461

Asset retirement obligations

200－

Others

1,495

1,774

Total current liabilities

29,671

34,681Long-term loans payable

10,0395,910

Lease obligations

2,350

1,856

Deferred tax liabilities

940

694

4

－

410

230

Noncurrent liabilities

Provision for directors' retirement benefits
Net defined benefit liability
Asset retirement obligations

91

91

Others138

117

13,9748,900

43,646

43,582

Capital stock

8,545

8,570

Capital surplus

7,496

7,521

Retained earnings

29,06527,466

Treasury stock(2,257)(2,258)

Total shareholders’ equity

42,85041,299Total noncurrent liabilities
Total liabilities(Net assets)
Shareholders’ equity

Valuation and translation adjustments
Valuation difference on available-for-sale securities(6)－

Foreign currency translation adjustment(405)(1,171)Remeasurements of defined benefit plans

152

920

Total valuation and translation adjustments

(259)

(250)

Non-controlling interests

2,256

2,169

Total net assets

44,846

43,218

Total liabilities and net assets

88,49386,8009(2) Consolidated statements of income and consolidated statement of comprehensive income(Consolidated statements of income)(Millions of yen)
FY2020FY2019(Apr. 1, 2019–Mar. 31, 2020)(Apr. 1, 2020–Mar. 31, 2021)

AmountAmountNet sales

130,524

113,046

Cost of sales

117,051

102,205

Gross profit

13,472

10,841

Packing and delivery expenses

1,550

1,369

Provision for product warranties

164

594

Selling, general and administrative expenses

Directors' compensations

225

229

Salaries and allowances

2,377

2,112

Provision for bonuses

331

308

Provision for directors’ bonuses

43－

Provision for directors’ retirement benefits

20Provision for retirement benefits

96

101

Welfare expenses

1,259

1,054

Depreciation

441

419

Rent expenses

395

395

Transportation and communication expenses

617

283

Research and development expenses

1,247

1,108

Entertainment expenses

90

21

Provision for shareholders benefit program

29－

Provision of allowance for doubtful accounts

094Provision for loss on order received

92－

Commission Fee

423

333

Amortization of goodwill

115－

Miscellaneous expenses

1,124

1,148

Total selling, general and administrative expenses

10,6299,576

Operating income (loss)

2,843

1,264

Interest income

172

131

Dividends income

1033

Foreign exchange gains－

169

Subsidy income

123

104

Others171286

Total non-operating income

571

696

Interest expenses

300

263

Foreign exchange losses

145－

Equity in losses of affiliates

52

142

Others33

14

Total non-operating expenses

532

420

Ordinary income

2,883

1,540

Non-operating income

Non-operating expenses

10

(Millions of yen)
FY2020FY2019(Apr. 1, 2019–Mar. 31, 2020)(Apr. 1, 2020–Mar. 31, 2021)

AmountAmountExtraordinary income
Gain on sales of noncurrent assets

74

46

Gain on sales of investment securities

1,498

－

Gain on transfer of business

64－

Total extraordinary income

1,637

46

Loss on retirement of noncurrent assets

251

210

Loss on sales of noncurrent assets

12

33

Loss on sales of investment securities

382

3

Impairment loss

Extraordinary loss

102

1,274

Loss on sales of golf club memberships

0－

Loss on liquidation of subsidiaries and associates－

11

Surcharges

24

3

Total extraordinary loss

773

1,535

Income (loss) before income taxes

3,747

51

Income taxes-current

2,025

1,605

Income taxes-deferred

(55)

(593)

Total income taxes

1,969

1,012

Profit (loss)

1,777

(960)

Profit (loss) attributable to non-controlling interests

341

278

Profit (loss) attributable to owners of parent

1,435(1,239)11

(Consolidated statement of comprehensive income)(Millions of yen）
FY2019FY2020(Apr. 1, 2019–Mar. 31, 2020)(Apr. 1, 2020–Mar. 31, 2021)

AmountAmount1,777

Profit (loss)(960)

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

(462)

6

Foreign currency translation adjustment

(55)

(727)

Remeasurements of defined benefit plans, net of tax

(333)

767

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

(14)

(41)

Total other comprehensive income

(866)

6

Comprehensive income

910

(954)

Comprehensive income attributable to owners of parent

615(1,230)Comprehensive income attributable to non-controlling interests

294

275

(Breakdown)

12(3) Consolidated statements of changes in net assets
Fiscal year ended March 31, 2020(April 1, 2019 to March 31, 2020)(Millions of yen)
Shareholders’ Equity
Capital stock
As of April 1, 2019

Capital surplus

8,545

Retained earnings

7,551

Total
shareholders’ equity

Treasury stock

28,315(901)

43,512

Changes of items during the period
Issuance of new shares
Dividends from surplus

(685)

(685)

Profit(Loss) attributable toowners of parent

1,435

1,435

Purchase of treasury stock(1,356)

Change in ownership interestof parent due to transactions with
non-controlling interests
Net changes of items other thanshareholders’ equity
Total changes of items during theperiod(1,356)(54)

As of March 31, 2020

(54)

－

(54)

749

(1,356)

(661)

8,545

7,496

29,065(2,257)42,850(Millions of yen)
Valuation and translation adjustments
Valuation difference
on available-for-salesecurities
As of April 1, 2019

456

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total valuationand translation
adjustments

Non-controllinginterests

Total net assets

485

559

2,098

46,170(381)

Changes of items during theperiodIssuance of new shares
Dividends from surplus(685)

Profit(Loss) attributable toowners of parent

1,435

Purchase of treasury stock(1,356)

Change in ownership interestof parent due to transactions
with non-controlling interests
Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
As of March 31, 2020

(54)
(462)

(24)

(333)

(819)

158

(662)

(462)

(24)

(333)

(819)

158

(1,323)

(6)

(405)

152

(259)

2,256

44,846

13

Fiscal year ended March 31, 2021 (April 1, 2020 to March 31, 2021)(Millions of yen)
Shareholders’ Equity
Capital stock
As of April 1, 2020

Capital surplus

Retained earnings

8,545

7,496

24

24

Total
shareholders’ equity

Treasury stock

29,065(2,257)42,850Changes of items during the period
Issuance of new shares

49

Dividends from surplus

(359)

(359)

Profit(Loss) attributable toowners of parent(1,239)(1,239)Purchase of treasury stock
Change in ownership interestof parent due to transactions with
non-controlling interests
Net changes of items other thanshareholders’ equity
Total changes of items during theperiodAs of March 31, 2021

(0)

(0)

24

24

(1,599)(0)(1,550)

8,570

7,521

27,466(2,258)41,299(Millions of yen)
Valuation and translation adjustments
Valuation difference
on available-for-salesecurities
As of April 1, 2020

(6)

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total valuationand translation
adjustments

Non-controllinginterests

Total net assets

152

(259)

2,256

44,846(405)

Changes of items during theperiodIssuance of new shares

49

Dividends from surplus(359)

Profit(Loss) attributable toowners of parent(1,239)Purchase of treasury stock(0)

Change in ownership interestof parent due to transactions
with non-controlling interests
Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
As of March 31, 2021

－
6

(766)

768

9

(86)

(77)

6

(766)

768

9

(86)

(1,628)－(1,171)

920

(250)

2,169

43,21814

(4) Consolidated statements of cash flows(Millions of yen)
FY2020FY2019(Apr. 1, 2019–Mar. 31, 2020)(Apr. 1, 2020–Mar. 31, 2021)

AmountAmountNet cash provided by (used in) operating activities
Income (loss) before income taxes

3,747

51

Depreciation and amortization

6,240

6,420

Impairment loss

102

1,274

Retirement benefit expenses

(37)

(14)

Increase (decrease) in net defined benefit liability

101

103

Increase (decrease) in provision for directors' retirement benefits

(1)

(4)

Increase (decrease) in allowance for doubtful accounts

(16)

94

Increase (decrease) in provision for bonuses

(108)

(165)

Increase (decrease) in provision for directors' bonuses

(40)

(43)

Increase (decrease) in provision for product warranties

(50)

397

Increase (decrease) in provision for shareholders benefit program(9)－

Loss on retirement of noncurrent assets

251

210

Loss (gain) on sales of tangible fixed assets

(62)

(13)

Loss (gain) on sales of investment securities(1,116)3

24

3

Interests and dividends income

(276)

(135)

Interests expenses

300

263

Foreign exchange losses (gains)

31

(44)

Surcharges

Equity in (earnings) losses of affiliates

52

142

Decrease (increase) in notes and accounts receivable-trade

1,188(1,309)Decrease (increase) in inventories(1,552)

1,272

Increase (decrease) in notes and accounts payable-trade(3,973)788

Loss (gain) on investments in partnership(5)－

Decrease (increase) in other current assets

(188)

(229)

Increase (decrease) in other current liabilities

330

159

Other, net

81

123

Subtotal

5,012

9,349

Interest and dividends income received

445

140

Interest expenses paid

(299)

(254)

Income taxes paid

(1,805)(1,756)

Surcharges

(260)

(3)

Net cash provided by (used in) operating activities

3,093

7,475

15

(Millions of yen)
FY2020FY2019(Apr. 1, 2019–Mar. 31, 2020)(Apr. 1, 2020–Mar. 31, 2021)

AmountAmountNet cash provided by (used in) investing activities
Proceeds from withdrawal of time deposits

294

853

Payments into time deposits

(30)

(943)

(7,696)(5,472)

80

182

(304)

(350)

(0)

－

Proceeds from sales of investment securities

5,835

12

Payments for asset retirement obligations

－

(100)

Other, net

41

(22)

(1,778)(5,840)Net increase (decrease) in short-term loans payable

(375)

1,548

Proceeds from long-term loans payable

2,661

－

Repayment of long-term loans payable(2,395)(939)

Purchase of treasury stock(1,356)(0)Cash dividends paid

(685)

(359)

Cash dividends paid to non-controlling shareholders

(385)

(199)

－

(59)

Others

1,180

(576)

Net cash provided by (used in) financing activities(1,357)(588)

Effect of exchange rate change on cash and cash equivalents

(58)

(156)

Net increase (decrease) in cash and cash equivalents

(101)

889

Cash and cash equivalents at beginning of period

13,826

13,724

Cash and cash equivalents at end of period

13,724

14,614Purchase of tangible fixed assets
Proceeds from sales of tangible fixed assets
Purchase of intangible assets
Purchase of investment securities

Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities

Payments from changes in ownership interests in subsidiaries that do not result inchange in scope of consolidation

16

(5) Notes concerning Consolidated Financial Statements(Going concern assumptions)Not applicable(Notes in the event of significant changes in shareholders’ equity)
According to the Board of Directors’ resolution on July 20, 2020, we issued new shares on August 20, 2020, as
restricted stock compensation (transfer-restricted share compensation) for directors and managing executive
officers. The capital stock increased by 24 million yen, and the capital surplus increased by 24 million yen at theend of the consolidated fiscal year under review.

17

(Consolidated statements of income)#1 Impairment Loss:
Impairment losses were recorded in the following asset groups of the Group:
FY2019 (April 1, 2019–March 31, 2020)
Place

Purpose of use

Type

Impairment loss
(Millions of yen)

The Company,

Technical Division
Nagoya, Aichi, Japan,

Idle assets

T.RAD Czech s.r.o
Unhost, Czech

Manufacture and sales ofheat exchangers

Building and other1

Machinery, equipment and vehicles
Tools, furniture and fixtures
Subtotal
Total

41
59
101
102

The asset groups are classified on the base of managerial accounting in consideration of company category and businesscategory.
As a result of accounting for the impairment of assets based on the aforementioned grouping, regarding idle assets with noexpected future use, its book value was written down to recoverable values, and the Company posted this loss as an
impairment loss under extraordinary loss. The amount listed as recoverable value by each asset group have been appraised
based on residual value.
As to manufacture and sales of heat exchangers, regarding aforementioned tangible fixed assets were no longer expected torecover the investment amount due to the decrease in profitability. Accordingly, their book values were written down torecoverable values, and the Company posted those losses as an impairment loss under extraordinary loss.
The amount listed as recoverable value by each asset group was calculated in accordance with the asset’s value inusage. In T.RAD Czech s.r.o, the calculation reflects a 10% discount in future cash flow.

FY2020 (April 1, 2020–March 31, 2021)
Place
The Company,
Head Quarter etc.

Purpose of use

Idle assets

Shibuya-ku, Tokyo, Japan
T.RAD North America, Inc.
Manufacture and sales of
Hopkinsville, Kentucky,
heat exchangers
U.S.A
T.RAD Czech s.r.o
Unhost, Czech

Manufacture and sales ofheat exchangers

Type

Machinery, equipment and vehicles
Tools, furniture and fixtures
SoftwareSubtotal
Machinery, equipment and vehicles
Tools, furniture and fixtures
Construction in progress
Subtotal
Machinery, equipment and vehicles
Tools, furniture and fixtures
Subtotal
Total

Impairment loss
(Millions of yen)

16
35
58
111
823
73
199
1,095
62
5
67
1,274

The asset groups are classified on the base of managerial accounting in consideration of company category and businesscategory.
As a result of accounting for the impairment of assets based on the aforementioned grouping, regarding idle assets with noexpected future use, its book value was written down to recoverable values, and the Company posted this loss as an
impairment loss under extraordinary loss. The amount listed as recoverable value by each asset group have been appraised
based on residual value.
As to manufacture and sales of heat exchangers in the United States and Czech Republic, regarding aforementioned tangible
fixed assets were no longer expected to recover the investment amount due to the decrease in profitability. Accordingly, theirbook values were written down to recoverable values, and the Company posted those losses as an impairment loss under
extraordinary loss.
The amount listed as recoverable value by each asset group was calculated in accordance with the asset’s value inusage. In T.RAD North America, Inc. the calculation reflects 5.11% to 5.92% discount. T.RAD Czech s.r.o. has novalue in use based on future cash flows. Therefore, the recoverable amount is evaluated as zero, and no discount rate isapplied.

18

(Additional information)(About the accounting estimate associated with the spread of novel coronavirus infections)
The spread of the COVID-19 pandemic is an event that has a widespread impact on the economy and corporate
activities. There is a possibility that the operation adjustments of customers will have a significant impact on the
T.RAD Group. However, in the latter half of the consolidated fiscal year (fiscal year ended in March 2021), theimpact almost disappeared. If we assume that this situation will continue in the next consolidated fiscal year
(fiscal year ending in March 2022), we have made accounting estimates for the current consolidated fiscal year
(fiscal year ended in March 2021).
(Application of tax effect accounting related to the transition from the consolidated tax payment system to theGroup Total System)
The Company and some consolidated domestic subsidiaries established a Group Total System under the Act on
Partial Revision of Income Tax Act, etc. (Act No. 8 of 2020). The non-consolidated tax payment system wasreviewed in line with the transition to this system. Regarding the review items, the provisions of Paragraph 44 of
the Application Guidelines for Accounting Standards for Tax Effect Accounting (Corporate Accounting Standards
Application Guideline No. 28, February 16, 2018) was not applied according to the interpretation of Paragraph 3of the Handling of Application of Tax Effect Accounting for Transition from Consolidated Tax Payment System
to Group Total System (by Practical Response Report No. 39, March 31, 2020). The amount of deferred tax assets
and deferred tax liabilities is based on the provisions of the Income Tax Act before the revision.

19

(Segment information)
1. General information of reportable segments
The reportable segments of the Group are components for which discrete financial information is available andwhose operating results are regularly reviewed at management meetings comprising directors and officers,
whereby decisions are made regarding the allocation of resources to the segments and assessments are madeconcerning the segments’ performance.
The Group’s business involves the manufacture and sales of heat exchangers for the automobile and otherindustries. The Company covers the business in Japan. Overseas companies cover the business of each region
such as the United States, Europe (the Czech Republic, Russia and Germany), Asia (Thailand, Indonesia andVietnam) and China. Each of these overseas corporations is an independent business unit whose operations
involve the manufacture of products that are marketed in each respective area.
Therefore, our Group consists of the Company and these overseas corporations which are based on a
manufacturing and sales structure. As such, “Japan,” “the United States,” “Europe,” “Asia” and “China” are our
five reportable segments.
In each reportable segment, heat exchangers for automobiles, construction, industrial machinery, airconditioners and others are manufactured and sold.
2. Calculation method for net sales, profit (loss), assets and other items by reportable segment
The accounting method for the Group’s reportable segments is comply with accounting policy adopted for
preparation of consolidated financial statements.
Net sales for reportable segments are for each production region.
Segment income is based on operating income.
Intersegment income and transfer amount are calculated based on arm's length price.
3. Net sales, profit (loss), assets and other items by reportable segments
Fiscal year ended March 31, 2020(from April 1, 2019 to March 31, 2020)(Millions of yen)

Reportable segment

Net Sales:
Sales to outside customers
Intersegment sales ortransfers
Total
Segment income (loss)

Japan

UnitedStatesEurope56,63931,040

6,844

Other

Total

Asia

China

Total

2,928

17,73921,211

129,559964

130,524

145

405

66

1,677

9,139

3,184

12,324

63,484

31,186

3,333

17,80622,888

138,699

4,149

142,848

(603)

(892)

(1,017)

2,176

2,769

2,432

117

2,550

57,77917,0162,969
9,785
18,352
105,903
2,371
108,275
Other items
Depreciation
3,220
1,210
144
971
677
6,225
112
6,338
Investment amount in
531
―
―
―
―
531
―
531
equity-method affiliate
Increase of tangible fixed
assets and intangible
3,693
1,377
588
893
830
7,382
81
7,463
assetsNote: “Other” comprises business operations that are not categorized as reportable segments and includes the businessactivities of domestic subsidiaries, such as the transportation business.
Segment assets

20

Fiscal year ended March 31, 2021(from April 1, 2020 to March 31, 2021)(Millions of yen)

Reportable segment

Net Sales:
Sales to outside customers
Intersegment sales ortransfers
Total
Segment income (loss)

Japan

UnitesStatesEurope50,17723,567

6,100

Other

Total

111,967

1,078

113,046

1,504

8,243

1,809

10,052

11,92324,969120,2102,888

123,098

1,165

2,956

1,343

(36)

1,306

Asia

China

Total

2,982

11,774

23,465

218

271

148

56,27823,785

3,254

(506)

(1,938)(335)

60,352
15,323
2,361
9,288
18,681106,007
1,060
107,067
Other items
Depreciation
3,545
1,244
112
835
690
6,429
88
6,517
Investment amount in
531
531
531
equity-method affiliate
Increase of tangible fixed
assets and intangible
2,844
1,746
118
897
502
6,110
37
6,148
assetsNote: “Other” comprises business operations that are not categorized as reportable segments and includes the businessactivities of domestic subsidiaries, such as the transportation business.
Segment assets21

4. Difference amount between the total amount of reportable segments and the posted amounts in the consolidated
financial statements and the main contents of the difference amount (the adjustment of difference)(Millions of yen)
FY2019Net sales
Total of reportable segments

FY2020138,699

120,210

Net sales of the classification “Others”

4,149

2,888

Elimination of trades among segments(12,324)(10,052)

Net sales in the consolidated financial statements

130,524

113,046(Millions of yen)

FY2019ProfitFY2020Total of reportable segments

2,432

1,343

Profit of the classification “Others”

117

(36)

Elimination of trades among segments

293

(42)

Operating income in the consolidated financial statements

2,843

1,264
(Millions of yen)

FY2019AssetsTotal of reportable segments

FY2020105,903

106,007

2,371

1,060

(19,781)(20,265)

88,49386,800Assets of the classification “Others”
Elimination of trades among segments
Total assets in the consolidated financial statements(Millions of yen)

Other items

Total of reportablesegments

Other

Adjustments(Note)

Posted amounts in the
consolidated financial
statements

FY2019FY2020FY2019FY2020FY2019FY2020FY2019FY2020Depreciation

6,225

6,429

112

88

(97)

(97)

6,240

6,420

Investment amount toequity-method affiliate

531

531

－

－

1,623

1,435

2,154

1,966

Increase of tangible fixed
7,382
6,110
81
37
7,481
5,935
17
(213)
assets and intangible assets
Note: Adjustments are as follows.
1. The adjustment of depreciation cost derives from the elimination of unrealized losses and gains related to non-current assets.
2. The adjustment of investment amount to the entities accounted for using equity method derives from investment profit onequity method.
3. The adjustment of increased amounts of tangible fixed assets and intangible assets are as follows.
Elimination of unrealized losses and gains related to non-current assets: (109) million yen
Other consolidated adjustment among segments: (104) million yen

22

(Supplementary information)
Sales states (consolidated)(Millions of yen)

FY2019FY2020(April 1, 2019 to March 31, 2020) (April 1, 2020 to March 31, 2021)

Amount%Amount%Increase/Decrease
Amount%For Automobile

98,37775.4

85,81775.9-12,559-12.8

For construction &industrial machine

26,14720.0

22,381

19.8-3,765-14.4

For Air conditioner

3,158

2.4

1,961

1.7

-1,197

-37.9

Other

2,841

2.2

2,885

2.6

43

1.5

130,524100.0
113,046
Total
Notes: Amounts less than one million yen have been truncated.

100.0-17,478-13.4

23

(Per share information)
FY2019(April 1, 2019–March 31, 2020)¥5,916.09¥194.28

FY2020(April 1, 2020–March 31, 2021)¥5,673.72¥(171.62)

Net assets per share:
Net income(loss) per share:(Note) 1. Diluted net income per share is not listed for the consolidated fiscal year under review, as there are no potential

shares that have dilutive effects on per-share net income.
2. Basis for calculation of net income per share as follows.
FY2019(April 1, 2019–March 31, 2020)
Net income(loss) per share
Profit(Loss) attributable toowners of parent
1,435(Millions of yen)Amount that is not attributable toshares of common stock—(Millions of yen)
Profit(Loss) attributable to owners ofparent related to shares of common
1,435
stock (Millions of yen)
Average number of shares ofcommon stock during the period
7,390(Thousands)

FY2020(April 1, 2020–March 31, 2021)(1,239)—(1,239)

7,223(Omitted disclosure)
Disclosure of the statement of comprehensive income, lease transactions, information on related parties, financial
products, securities, derivative transactions, retirement benefits, stock options, tax-effect accounting, asset
retirement obligations, and notes related to the rental property are omitted because disclosure of such information
is deemed to be insignificant.
(Significant subsequent events)
Not applicable245. Non-Consolidated Financial Statements and main notes(1) Non-consolidated balance sheets(Millions of yen)
FY2020FY2019As of March 31, 2020

As of March 31, 2021

AmountAmount(Assets)
Current assets
4,248

Cash and deposits

5,957

Notes receivable-trade

113

126

Electronically recorded monetary claims-operating

3,873

3,025

Accounts receivable-trade

11,873

13,128

Short-term investment securities

499

489

Merchandise and finished goods

1,729

1,463

Work in process

1,249

975

Raw materials and supplies

601

600

Prepaid expenses

125

149

Accounts receivable-other

2,131

2,065

Other current assets

2

3

Allowance for doubtful accounts

(0)

(0)

26,45027,984

Total current assets
Noncurrent assets
Tangible Fixed Assets
Buildings

12,314

12,684

Accumulated depreciation(9,501)(10,048)

Buildings, net

2,813

2,636

Structures

1,489

1,542

Accumulated depreciation(1,257)(1,296)232

246

Structures, net
Machinery and equipment

25,81326,087

Accumulated depreciation(18,972)(19,953)

Machinery and equipment, net

6,841

6,133

Vehicles128

128

Accumulated depreciation

(104)

(113)

24

14

Tools, furniture and fixtures

24,51825,296

Accumulated depreciation(23,392)(24,357)

Vehicles, net

Tools, furniture and fixtures, net

1,126

938

Land

1,251

1,771

Lease assets

48

21

Accumulated depreciation

(44)

(20)

3

0

895

1,223

Lease assets, net
Construction in progress
Other, net

0013,18912,966

Software677

428

Other intangible assets

68

381

Total intangible assets

746

809

Total Tangible Fixed Assets
Intangible assets

25

(Millions of yen)
FY2020FY2019As of March 31, 2020

As of March 31, 2021

AmountAmountInvestments and other assets
31

42

Stocks of subsidiaries and affiliates

7,603

8,066

Investments in capital of subsidiaries and affiliates

Investment securities

7,636

7,446

Long-term prepaid expenses

15

11Long-term loans receivable from employees－

0Insurance funds

49

49

Deferred tax assets

406

896

Others217

162

Allowance for doubtful accounts

(13)

(13)

Allowance for investment loss－

(3,778)

Total investments and other assets

15,946

12,884

Total noncurrent assets

29,882

26,660Total assets

56,33254,645

Electronically recorded obligations – operating

3,414

3,295

Accounts payable-trade

5,722

6,343

Short-term loans payable

217

3,992

Lease obligations

360

196

Accounts payable-other

409

533

Income taxes payable

354

61

Accrued consumption taxes

95

164

Accrued expenses

1,313

1,337

Advances received

384

173

Deposits received

67

63(Liabilities)
Current liabilities

1,250

1,072

Provision for directors’ bonuses

43－

Provision for product warranties

28

23

Provision for bonuses

Provision for shareholders benefit program

39－

Electronically recorded obligations - non-operating

384

461

Asset retirement obligations

200

－

4

7

14,292

17,726Long-term loans payable

9,745

5,752

Lease obligations

422

226

Provision for retirement benefits

460

493

Asset retirement obligations

63

63

Others20

38

10,712

6,574

25,00424,300

OthersTotal current liabilities
Noncurrent liabilities

Total noncurrent liabilities
Total liabilities

26

(Millions of yen)
FY2020FY2019As of March 31, 2020

As of March 31, 2021

AmountAmount(Net assets）
Shareholders’ equity
8,545

8,570

Legal capital surplus

7,306

7,331

Other capital surplus

167

167

Total capital surplus

7,473

7,498

1,097

1,097

Reserve for dividends

500

500

Reserve for special account for advanced depreciation of noncurrent assets

98

96

General reserve

8,130

8,130

Retained earnings brought forward

7,746

6,709

Capital stock
Capital surplus

Retained earnings
Legal retained earnings
Other retained earnings

Total retained earnings

17,573

16,533

Treasury stock(2,257)(2,258)

Total shareholders’ equity

31,33430,344

Valuation difference on available-for-sale securities(6)－

Total valuation and translation adjustments(6)－

Total net assets

31,32830,344

Total liabilities and net assets

56,33254,645

Valuation and translation adjustments27

(2) Non-consolidated statements of income(Millions of yen)
FY2020FY2019Net sales(Apr. 1, 2019–Mar. 31, 2020)(Apr. 1, 2020–Mar. 31, 2021)

AmountAmount63,48456,278

Beginning finished goods

1,248

1,616

Cost of products manufactured

Cost of sales
52,55845,767Purchase of finished goods

702

1,131

Transfer from other account

3,719

3,214

Total

58,22851,729Finished goods transfer to other account

166

164

Ending finished goods

1,616

1,362

Cost of finished goods sold

56,44550,203Gross profit

7,038

6,074

2,438

2,172

Advertising expenses

42

38

Provision for product warranties

1236

Selling, general and administrative expenses
Packing and delivery expenses

Directors' compensations

199

216

Salaries and allowances

1,128

1,022

Provision for bonuses

299

264

Provision for directors’ bonuses

42－

Provision for retirement benefits

73

81

Welfare expenses

489

435

Depreciation

232

229

Repair expenses

101

94

Taxes and dues

161

101

Rent expenses

253

265

Transportation and communication expenses

415

159

Research and development expenses

1,266

1,020

Insurance expenses

21

14

Provision of allowance for doubtful accounts(0)－

Stationery expenses

28

32Entertainment expenses

49

9Provision for shareholders benefit program

29－

Commission Fee

291

241

Miscellaneous expenses

64

151

Total selling, general and administrative expense

7,641

6,590

Operating income (loss)

(602)

(515)

Interest income

31Interest on securities

01

Dividends income

Non-operating income

3,528

3,084

Foreign exchange gains－

139

Subsidy income－

104

Others

72

160

3,605

3,492

Total non-operating income28

(Millions of yen)
FY2020FY2019(Apr. 1, 2019–Mar. 31, 2020)(Apr. 1, 2020–Mar. 31, 2021)

AmountAmountNon-operating expenses
Interest expenses

43

40

Foreign exchange losses

109

－

2

1

Total non-operating expenses

155

42

Ordinary income

2,847

2,934

Gain on sales of noncurrent assets

50

10Gain on sales of investment securities

1,498

－

Reversal of allowance for investment loss

227－

Gain on extinguishment of tie-in shares

－

590

1,775

601

241

191

1

111

OthersExtraordinary income

Total extraordinary income
Extraordinary Loss
Loss on retirement of noncurrent assets
Impairment loss
Loss on sales of investment securities

382

3

Provision of allowance for investment loss

－

3,778

Loss on valuation of investments in capital of subsidiaries and affiliates

481

59

Provision of allowance for doubtful accounts of golf club membership

0－

Loss on liquidation of subsidiaries－

38

Loss on sales of property

－

90

24

3

Total extraordinary loss

1,132

4,275

Income before income taxes

3,491

(740)

Income taxes-current

713

427

Income taxes-deferred

41

(488)

Total income taxes

755

(60)

Net income(loss)

2,735

(679)

Surcharges

29

(3) Non-consolidated statements of changes in net assets
Fiscal year ended March 31, 2020 (April 1, 2019 to March 31, 2020)(Millions of yen)
Shareholders’ Equity
Capital Surplus

Capital
stock

Legal
capitalsurplus

OthercapitalsurplusTotal
capitalsurplusLegalretainedearnings

8,545

7,306

167

7,473

1,097

Retained Earnings
Other retained earnings
Reserve foradvanced
Generaldepreciation ofreserve
non-current
assetsRetainedearnings
brought
forwardTotal
retainedearnings

5,694

15,523

2―

Dividends from surplus

(685)

(685)

Net income(loss)

2,735

2,735

As of April 1, 2019

Reservefordividends

500

101

8,130

Changes of items during
the period
Issuance of new shares
Reversal of reserve foradvanced depreciation of
non-current assets(2)

Purchase of treasury stock
Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
As of March 31, 2020

―

―

―

―

―

―

(2)

―

2,052

2,049

8,545

7,306

167

7,473

1,097

500

98

8,130

7,746

17,573(Millions of yen)
Shareholders’ Equity

As of April 1, 2019

Valuation and translation adjustments

Treasury
stock

Total
Shareholders’equityValuation difference on
available-for-sale securities(901)

30,642456

Total valuation andtranslation adjustments
456

Total net assets
31,098Changes of items during
the period
Issuance of new shares
Reversal of reserve foradvanced depreciation of
non-current assets――

Dividends from surplus

(685)

(685)

Net income(loss)

2,735

2,735

(1,356)(1,356)

Purchase of treasury stock
Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
As of March 31, 2020

(1,356)

(462)

(462)

(462)

(1,356)

692

(462)

(462)

230

(2,257)31,334(6)(6)

31,32830

Fiscal year ended March 31, 2021 (April 1, 2020 to March 31, 2021)(Millions of yen)
Shareholders’ Equity
Capital Surplus

Capital
stock

Legal
capitalsurplus

OthercapitalsurplusTotal
capitalsurplusLegalretainedearnings

8,545

7,306

167

7,473

1,097

24

24

Retained Earnings
Other retained earnings
Reserve foradvanced
Generaldepreciation ofreserve
non-current
assetsRetainedearnings
brought
forwardTotal
retainedearnings

7,746

17,573

2―

Dividends from surplus

(359)

(359)

Net income(loss)

(679)

(679)

As of April 1, 2020

Reservefordividends

500

98

8,130

Changes of items during
the period
Issuance of new shares

24

Reversal of reserve foradvanced depreciation of
non-current assets(2)

Purchase of treasury stock
Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
As of March 31, 2021

24

24

―

24

―

―

(2)

―

(1,036)(1,039)

8,570

7,331

167

7,498

1,097

500

96

8,130

6,709

16,533(Millions of yen)
Shareholders’ Equity

As of April 1, 2020

Valuation and translation adjustments

Treasury
stock

Total
Shareholders’equityValuation difference on
available-for-sale securities(2,257)31,334(6)

Total net assets

Total valuation andtranslation adjustments(6)

31,328Changes of items during
the period
Issuance of new shares

49

49

Reversal of reserve foradvanced depreciation of
non-current assets――

Dividends from surplus

(359)

(359)

(679)

(679)

(0)

(0)

Net income(loss)
Purchase of treasury stock
Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
As of March 31, 2021

(0)

6

6

6

(0)

(990)

6

6

(983)

(2,258)30,334――30,34431

(4) Notes concerning non-consolidated financial statement(Going concern assumptions)Not applicable(Notes in the event of significant changes in shareholders’ equity)
According to the Board of Directors’ resolution on July 20, 2020, we issued new shares on August 20, 2020, as
restricted stock compensation (transfer-restricted share compensation) for directors and managing executive
officers. The capital stock increased by 24 million yen, and the capital surplus increased by 24 million yen at theend of the consolidated fiscal year under review.
(Additional information)(About the accounting estimate associated with the spread of novel coronavirus infections)
The spread of the COVID-19 pandemic is an event that has a widespread impact on the economy and corporate
activities. There is a possibility that the operation adjustments of customers will have a significant impact on the
T.RAD Group. However, in the latter half of the consolidated fiscal year (fiscal year ended in March 2021), theimpact almost disappeared. If we assume that this situation will continue in the next consolidated fiscal year
(fiscal year ending in March 2022), we have made accounting estimates for the current consolidated fiscal year
(fiscal year ended in March 2021).
(Application of tax effect accounting related to the transition from the consolidated tax payment system to theGroup Total System)
The Company and some consolidated domestic subsidiaries established a Group Total System under the Act on
Partial Revision of Income Tax Act, etc. (Act No. 8 of 2020). The non-consolidated tax payment system wasreviewed in line with the transition to this system. Regarding the review items, the provisions of Paragraph 44 of
the Application Guidelines for Accounting Standards for Tax Effect Accounting (Corporate AccountingStandards Application Guideline No. 28, February 16, 2018) was not applied according to the interpretation of
Paragraph 3 of the Handling of Application of Tax Effect Accounting for Transition from Consolidated Tax
Payment System to Group Total System (by Practical Response Report No. 39, March 31, 2020). The amount ofdeferred tax assets and deferred tax liabilities is based on the provisions of the Income Tax Act before therevision.
(Significant subsequent events)
Not applicable32