Consolidated Financial Results for the 2nd Quarter of Fiscal Year Ending March 31, 2019
(J-GAAP)
November 5, 2018
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
Norio Kanai, Managing Executive Officer,
Contact:
Tel:+81-3-3373-1101
Finance & Accounting Dept.
Scheduled date of filing of 2nd quarter securities report:
November 6, 2018
Scheduled date of start of dividend payments:
December 1, 2018
Supplemental materials prepared for consolidated financial results: None
Briefing on consolidated financial results: Yes(for institutional investors, and analysts)(Amounts less than one million yen have been truncated)

1. Consolidated Financial Performance for the 2nd Quarter of Fiscal Year Ending March 31, 2019
(April 1, 2018 to September 30, 2018)(1) Consolidated operating performance(Percentage figures indicate year-on-year change)
Net sales
Millions of yen

Operating income% Millions of yen

Ordinary income% Millions of yen

Six months ended
67,580
14.7
3,073
14.5
3,298
September30, 2018
Six months ended
58,91618.7
2,684 112.8
3,060
September30, 2017
Note: Comprehensive income
Six months ended September 30, 2018: ¥772 million -43.6%
Six months ended September 30, 2017: ¥1,368 million ―%Net income per share
Diluted net income per share
Six months ended
September 30, 2018
Six months ended
September 30, 2017

Yen

Yen

193.57―184.36―

Profit attributable toowners of parent% Millions of yen
%

7.8

1,540

5.0

152.6

1,467

75.3

Note: We consolidated each unit of 10 common shares into a unit of one share on October 1, 2017. Net income per share is calculated on theassumption that the consolidation of shares was conducted at beginning of the previous consolidated fiscal year.

(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Equity ratio

Net assets per share

Millions of yen%

Yen

47,34348.6

5,680.54

46,63948.1

5,635.91

Six months ended
93,004September30, 2018
Fiscal year ended
93,320March 31, 2018
Reference: Shareholders’ equity
As of September 30, 2018: ¥45,215 million
As of March 31, 2018 : ¥44,861 million

2. Dividends
1Q

2Q
Yen

Dividends per Share
3Q
Yen
Yen

Fiscal year ended
3.00――
March 31, 2018
Fiscal year ending
40.00―
March 31, 2019
Fiscal year ending
March 31, 2019―
(Forecast)
Note: Revisions to the forecast of dividends since the latest official announcement: No

1

Year-end
Yen

Total
Yen

60.00

―

50.00

90.00

We consolidated each unit of 10 common shares into a unit of one share on October 1, 2017. The amount of theyear-end dividends per share for the fiscal year ended March 31, 2018, is described taken consolidation of shares into
consideration, and annual dividends per share is described as “―.” The annual dividends per share which is converted
by the basis after consolidation of shares for the fiscal year ended March 31, 2018, are 90 yen.

3. Forecast of Consolidated Financial Performance for the Fiscal Year Ending March 31, 2019
(April 1, 2018 to March 31, 2019)(Percentage figures indicate changes from the same period of the previous year)
Net sales
Millions ofyen%Operating income

Ordinary income

Millions ofyenMillions of
yen

%

%

Profit attributable toowners of parent
Millions of
yen

%

Net
incomeper share
Yen

Fiscal year ending
138,000
10.9
5,200 -10.2
5,600
-13.1
1,600
-56.7
201.01March 31, 2019
Note: Revisions to the forecast of consolidated financial performance since the latest official announcement: Yes
For details, please refer to“Revisions to the Forecasts of Financial Performance for the Year Ending March 31, 2019” released on
November 5, 2018.

4. Other(1) Changes in significant subsidiaries during the current quarter(changes in specific subsidiaries resulting in changes in the scope of consolidation): None
(2) Adoption of specific accounting policies for quarterly consolidated financial statements: None
(3) Changes in accounting principles, estimation procedures or 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
(4) Number of shares issued and outstanding (common stock)1) Number of shares issued and outstanding at end of period (including treasury stock)
As of September 30, 2018: 8,344,405 shares
As of March 31, 2018 : 8,344,405 shares
2) Number of shares of treasury stock at end of period
As of September 30, 2018: 384,746 shares
As of March 31, 2018 : 384,514 shares
3) Average number of shares outstanding during the period
Six months ended September 30, 2018: 7,959,812 shares
Six months ended September 30, 2017: 7,961,645 shares
Note: We consolidated each unit of 10 common shares into a unit of one share on October 1, 2017. Number of shares issued andoutstanding at end of year, Number of shares of treasury stock at end of period and Average number of shares outstanding during
the period are calculated on the assumption that the consolidation of shares was conducted at beginning of the previous consolidated
fiscal year.

* 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.

2

Table of Contents
1. Qualitative Information for the Second Quarter of Fiscal Year Ending March 31, 2019 ··························· 4(1) Consolidated financial performance ··················································································· 4(2) Consolidated financial position ························································································ 5(3) Future projections including forecasts of consolidated financial performance ··········································· 5
2. Quarterly Consolidated Financial Statements and main notes ·························································· 6(1) Quarterly consolidated balance sheets ················································································ 6(2) Quarterly consolidated statements of income andquarterly consolidated statement of comprehensive income ·········································· 8(Quarterly consolidated statements of income) ···································································· 8(Quarterly consolidated statement of comprehensive income) ················································ 10(3) Quarterly consolidated statements of cash flows ·································································· 11(4) Notes to quarterly consolidated financial statements ····························································· 13(Going concern assumptions)························································································· 13(Notes in the event of significant changes in shareholders’ equity)············································· 13(Additional information) ······························································································ 13(Segment information)································································································· 14
3. Supplementary information
Sales states (consolidated) ···························································································· 16

31. Qualitative Information for the Second Quarter of Fiscal Year Ending March 31, 2019(1) Consolidated financial performance
The economic environment during the current second quarter consolidated accumulative period remained strong, aided
by the increase of exports and the favorable transition of domestic demand. However, there are concerns that the economy
downward pressure risk which will be caused by the protectionist trade policy of the U.S. administration.
Under the circumstances, the net sales of the T.RAD Group (on a foreign currency basis) in domestic and overseas
increased from the same period of the previous year. Although the operating income decreased in Japan and Europe, it
increased in the United States, Asia and China. Although income taxes increased, the profit attributable to owner of parent
increased from the same period of the previous year due to the decrease of payment of settlement related to antitrust laws
etc.
As a result, net sales during the consolidated cumulative second quarter increased by 8,664 million yen from theprevious fiscal year, amounting to 67,580 million yen (up 14.7% year on year), operating income increased by 389 million
yen, amounting to 3,073 million yen (up 14.5% year on year), ordinary income increased by 237 million yen, amounting to
3,298 million yen (up 7.8% year on year) and profit attributable to owners of parent increased by 73 million yen, amounting
to 1,540 million yen (up 5.0% year on year).
The segment results are as follows.
The book-closing date for the consolidated subsidiaries for the first six months of the fiscal year under review is June 30.
In preparing the consolidated financial statements, the financial statements as of, and for the six-month period ended on
this date were used. With respect to material transactions conducted during the period between this date and thebook-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.
Three of domestic subsidiaries have the same settlement date that coincides with the last day of the consolidated fiscal
year. The segment impacted by such adjustments is Other.
From the previous third quarterly consolidated accounting period, Qingdao Toyo Heat Exchanger Co., Ltd. is included
in China segment. In addition, T.RAD CONNECT Co., Ltd. in which we newly established during the second quarterly
consolidated accounting period, is included in Other segment.
Net Sales
Six months
Six months
ended
ended
September 30, September 30,
2017
2018

Japan
United States

Europe
Asia
China
Other
(including
eliminations)Operating Income (Loss)

Increase/
Decrease

Percentage change(on a foreign
currency basis)*Six months
ended
September
30, 2017(%)

Six months
ended
September 30,
2018

Increase/
Decrease

Percentage change(on a foreign
currency basis)*(%)(Millions of yen)

(Millions of yen)

(Millions of yen)

(Millions of yen)

(Millions of yen)

(Millions of yen)

27,346
15,450
1,971
7,851
5,770

29,73815,882
2,268
8,690
10,512

2,392
431
297
838
4,741

8.7
4.2
15.1
11.5
81.5

813
190
(166)
904
1,038

365
247
(478)
1,167
1,469

- 448
57
-312
263
431

-55.1
31.9
-190.0
30.0
40.0

526

489

-36

-7.0

(95)

302

397

417.6

Total
58,916
67,580
8,664
15.2
2,684
3,073
389
14.3
*The percentage changes (on a foreign currency basis) in the chart are the percentage changes after correcting for differences
arising from fluctuations in the foreign exchange rates applicable to overseas net sales.
(i) Japan
Net sales of products for automobile industry increased from the same period of the previous year thanks to the favorable
transition of the orders received for our products of models. The net sales of products for construction and industrial
machines increased from the same period of the previous year due to the favorable China and Mining market. As a result,the net sales in the Japan segment increased by 2,392 million yen, resulting in 29,738 million yen.
Operating income decreased by 448 million yen from the same period of the previous year due to rising raw material
price and increase of R&D expenses and etc., resulting in 365 million yen.
(ii) United States
The net sales of products for the automobile industry increased due to the commencement of mass production of models forwhich orders were newly received etc.
4The net sales of products for construction and industrial machines increased from the same period of the previous year due
to the increase of demands by the major customers.
As a result, the net sales in the United States segment increased by 431 million yen from the same period of theprevious year, resulting in 15,882 million yen. On a foreign currency basis, it increased by 4.2%.
Operating income increased by 57 million yen from the same period of the previous year, resulting in 247 million yen.
On a foreign currency basis, it increased by 31.9%.
(iii) Europe
The net sales of products for the automobile industry increased from the same period of the previous year, contributed by
the increase of orders received from major customers in Czech Republic. As a result, the net sales in the Europe segment
increased by 297 million yen from the same period of the previous year, resulting in 2,268 million yen. On a foreign
currency basis, it increased by 15.1%.
Operating loss of 478 million yen was posted, worsening by 312 million yen from the same period of the previous year
by increased cost associated with launch of a new order model in Czech Republic. On a foreign currency basis, it decreasedby 190.0%.
(iv) Asia
The net sales of products for the automobile industry increased from the same period of the previous year by the favorable
sales of the orders received for our models in ASEAN subsidiaries. As a result, the net sales in the Asia segment increased
by 838 million yen from the same period of the previous year, resulting in 8,690 million yen. On a foreign currency basis, it
increased by 11.5%.
Operating income increased by 263 million yen from the same period of the previous year, resulting in 1,167 million
yen. On a foreign currency basis, it increased by 30.0%.
(v) China
The net sales of products for the automobile industry largely increased from the same period of the previous year due to a
new addition of net sales 3,821 million yen of Qingdao Toyo Heat Exchanger Co., Ltd. We acquired its shares additionallyand making it a subsidiary from the previous third quarterly consolidated accounting period. Net sales of products forconstruction and industrial machines increased from the same period of the previous year due to increase in orders
influenced by the favorable Chinese market. As a result, the net sale in the China segment increased by 4,741 million yen
from the same period of the previous year, resulting in 10,512 million yen. On a foreign currency basis, it increased by
81.5%.
The operating income increased by 431 million yen from the same period of the previous year, resulting in 1,469
million yen. On a foreign currency basis, it increased by 40.0%.
(2) Consolidated financial position
1) Assets, liabilities and net assets
Total assets at the end of current second quarter of the fiscal year under review resulted in 93,004 million yen (down 316
million yen from the end of the previous fiscal year) due to the decrease of tangible fixed assets etc.
Total liabilities resulted in 45,660 million yen (down 1,020 million yen) due to the payment of long-term loans payable
and payment of settlement etc.
Net assets resulted in 47,343 million yen (up 704 million yen) due to retained earnings increased.
2) Cash flows
Cash and cash equivalents at the end of the current second quarter of the fiscal year under review totaled 10,946 million yen,increase of 1,679 million yen from the same period of the previous year.
The factors for increase or decrease of each cash flow in the current second quarter consolidated accumulative period
are as follows.
Net cash provided by operating activities was 3,818 million yen, decrease of 1,448 million yen year on year due to theincrease of working capital accompanying with the increase of net sales and the payment of settlement etc. Net cash used ininvesting activities was 3,959 million yen, due to capital investment increase of 1,574 million yen year on year. Net cashused in financing activities was 585 million yen, a decrease of 737 million yen year on year due to decrease loans payableetc.
(3) Future projections including forecasts of consolidated financial performance
We revised the forecast of consolidated financial performance released on May 14, 2018. For details, please refer to“Revisions to the Forecasts of Financial Performance for the Year Ending March 31, 2019” that we announced today(November 5, 2018).

5

2. Quarterly Consolidated Financial Statements and main notes(1) Quarterly consolidated balance sheets(Millions of yen)
FY2018_2Q

FY2017
As of March 31, 2018

As of September 30,
2018

AmountAmount(Assets)
Current assets
Cash and deposits

12,128

11,794

Notes and accounts receivable-trade24,92825,615

Electronically recorded monetary claims-operating

2,659

2,428

Short-term investment securities

399

399

Merchandise and finished goods

2,728

3,018

Work in process

594

591

Raw materials and supplies

5,097

5,055

Others

2,253

2,360

Allowance for doubtful accounts

(85)

(87)

50,704

51,177

Total current assets
Noncurrent assets
Tangible fixed assets
Building and structures, net

6,528

6,442

Machinery, equipment and vehicles, net

16,287

15,862

Land

2,602

2,562

Lease assets, net

122

111

Construction in progress

3,476

3,325

Other tangible fixed assets, net

2,236

2,323

Total tangible fixed assets

31,25430,627

Goodwill

583

286

Others

1,068

1,142

Total intangible assets

1,651

1,428

Investment securities

8,470

8,654

Net defined benefit asset

467

444

Deferred tax assets

59

76

Others741

635

Intangible assets

Investments and other assets

Allowance for doubtful accounts

(28)

(39)

Total investments and other assets

9,710

9,770

42,616

41,826

93,32093,004

Total noncurrent assets
Total assets

6

(Millions of yen)
FY2018_2Q

FY2017
As of March 31, 2018

As of September 30,
2018

AmountAmount(Liabilities)
Current liabilities
Notes and accounts payable-trade

14,086

14,415

Electronically recorded obligations – operating

4,703

5,190

Short-term loans payable

7,646

7,841

Lease obligations

378

294

Income taxes payable

563

525

Accrued expenses

3,289

2,873

Provision for bonuses

1,468

1,497

Provision for directors’ bonuses

96

46

Provision for product warranties

206

250

Provision for shareholders benefit program

62

37

Electronically recorded obligations - non-operating

757

556

Others

2,384

1,688

Total current liabilities

35,64235,218Long-term loans payable

8,582

7,846

Lease obligations

735

602

Deferred tax liabilities

Noncurrent liabilities

1,480

1,758

Provision for directors' retirement benefits

45

Net defined benefit liability

95

94

Asset retirement obligations

89

90

Others51

45

11,03910,442

46,68145,660Capital stock

8,545

8,545

Capital surplus

7,434

7,579

Retained earnings

27,37628,439Total noncurrent liabilities
Total liabilities(Net assets)
Shareholders’ equity

Treasury stock

(899)

(900)

Total shareholders’ equity

42,45743,663

Valuation difference on available-for-sale securities

1,047

1,194

Foreign currency translation adjustment

679

(285)

Remeasurements of defined benefit plans

677

641

Total accumulated other comprehensive income

2,404

1,551

Accumulated other comprehensive income

Non-controlling interests

1,777

2,128

Total net assets

46,63947,343

Total liabilities and net assets

93,32093,0047

(2) Quarterly consolidated statements of income and quarterly consolidated statement of comprehensive income(Quarterly consolidated statements of income)(Millions of yen)Six months ended
September 30, 2018

Six months ended
September 30, 2017
(Apr. 1, 2017–September 30, 2017)(Apr. 1, 2018–September 30, 2018)

AmountAmountNet sales

58,916

67,580

Cost of sales

51,68959,136Gross profit

7,227

8,444

Packing and delivery expenses

644

867

Salaries and allowances

838

940

Provision for bonuses

279

322

Provision for directors’ bonuses

33

46

Selling, general and administrative expenses

Retirement benefit expenses

33

27

Welfare expenses

487

522

Provision for product warranties

1078

Research and development expenses

589

694

Others

1,626

1,870

Total selling, general and administrative expenses

4,542

5,370

Operating income (loss)

2,684

3,073

31

63

Dividends income

114

107

Equity in earnings of affiliates

186

114

Foreign exchange gains

29－

Others124

104

Total non-operating income

487

390

Interest expenses

104

131

Foreign exchange losses－

22

Others

6

12

111

165

3,060

3,298

Non-operating income
Interest income

Non-operating expenses

Total non-operating expenses
Ordinary income (loss)8

(Millions of yen)Six months ended
September 30, 2018

Six months ended
September 30, 2017
(Apr. 1, 2017–September 30, 2017)(Apr. 1, 2018–September 30, 2018)

AmountAmountExtraordinary income
Gain on sales of noncurrent assets

14

22

Gain on sales of investment securities

507－

Total extraordinary income

521

22

Loss on sales of noncurrent assets

038

Loss on retirement of noncurrent assets

26

33

Impairment loss－

192

Provision of allowance for doubtful accounts of golf club membership－

11

Surcharges

1,256

274

Total extraordinary loss

1,284

549

Income (loss) before income taxes

2,298

2,770

Income taxes-current

747

859

Income taxes-deferred

0222

Total income taxes

747

1,081

Profit (loss)

1,551

1,688

83

147

1,467

1,540

Extraordinary loss

Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent

9

(Quarterly consolidated statement of comprehensive income)(Millions of yen）
Six months ended
September 30, 2018

Six months ended
September 30, 2017

Profit (loss)(Apr. 1, 2017–September 30, 2017)(Apr. 1, 2018–September 30, 2018)

AmountAmount
1,551

1,688

Valuation difference on available-for-sale securities

154

147

Foreign currency translation adjustment

(313)

(946)

Remeasurements of defined benefit plans, net of tax

(14)

(35)

(8)

(81)

Total other comprehensive income

(182)

(916)

Comprehensive income

1,368

772

Comprehensive income attributable to owners of the parent

1,298

687

Comprehensive income attributable to non-controlling interests

70

84

Other comprehensive income

Share of other comprehensive income of associates accounted for using equity
method(Breakdown)

10(3) Quarterly consolidated statements of cash flows(Millions of yen)Six months ended
September 30, 2018

Six months ended
September 30, 2017
(Apr. 1, 2017–September 30, 2017)(Apr. 1, 2018–September 30, 2018)

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

2,298

2,770

Depreciation and amortization

2,596

2,906

Retirement benefit expenses

(22)

(51)

Increase(decrease) in net defined benefit liability

27

27

Increase (decrease) in provision for directors' retirement benefits

1

1

(33)

15

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses

39

30

Increase (decrease) in provision for directors' bonuses

(19)

(49)

Increase (decrease) in provision for product warranties

(20)

52

Loss on retirement of noncurrent assets

26

33

Loss(gain) on sales of tangible fixed assets

(13)

16

Loss (gain) on sales of investment securities

(507)

－

Surcharges

1,256

274

Interest and dividends income

(146)

(171)

Interest expenses

104

131

Equity in (earnings) losses of affiliates

(186)

(114)

－

192

Impairment loss
Decrease(increase) in notes and accounts receivable-trade(2,079)(935)

Decrease(increase) in inventories

(20)

(492)

Increase(decrease) in notes and accounts payable-trade

2,384

1,144

Decrease(increase) in other current assets

(19)

(136)

Increase (decrease) in other current liabilities

430

(511)

Other, net

(62)

116

Subtotal

6,036

5,249

Interest and dividends income received

221

231

Interest expenses paid

(104)

(131)

Income taxes paid

(683)

(812)

Surcharges paid

(202)

(718)

Net cash provided by (used in) operating activities

5,267

3,818

11

(Millions of yen)Six months ended
September 30, 2018

Six months ended
September 30, 2017
(Apr. 1, 2017–September 30, 2017)(Apr. 1, 2018–September 30, 2018)

AmountAmountNet cash provided by (used in) investing activities
Purchase of tangible fixed assets(2,701)(3,220)

Proceeds from sales of tangible fixed assets

40

127

Proceeds from sales of investment securities

530－

Payments into time deposits

(186)

(736)

Proceeds from withdrawal of time deposits

18

30

Others

(86)

(159)

(2,385)(3,959)Net increase (decrease) in short-term loans payable

(46)

38

Proceeds from long-term loans payable

1,600

730

Repayment of long-term loans payable(758)(1,073)1

50

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

Proceeds from share insurance to non-controlling shareholders
Purchase of treasury stock

(2)

(0)

Cash dividends paid

(238)

(477)

Cash dividends paid to non-controlling shareholders

(52)

(51)

－

411

Others

(349)

(212)

Net cash provided by (used in) financing activities

152

(585)

15

(294)

Net increase (decrease) in cash and cash equivalents

3,050(1,019)Cash and cash equivalents at beginning of period

6,216

11,965

Cash and cash equivalents at end of period

9,266

10,946

Proceeds from changes in ownership interests in subsidiaries that do not
result in change in scope of consolidation

Effect of exchange rate change on cash and cash equivalents12(4) Notes to quarterly consolidated financial statements(Going concern assumptions)Not applicable(Notes in the event of significant changes in shareholders’ equity)
Not applicable(Additional information)(Application of Partial Amendments to Accounting Standard for Tax Effect Accounting, etc.)
We have been applying the “ Partial Amendments to Accounting Standard for Tax Effect Accounting, etc.” (ASBJ
Statement No.28, February 16, 2018) from beginning of the first quarterly consolidated accounting period.
This has led to Deferred tax assets has been presented to Investments and other assets and Deferred tax liabilities
has been presented to Noncurrent liabilities.

13

(Segment information)
I Six months ended September 30, 2017 (from April 1, 2017 to September 30, 2017)
1. Net sales and profit (loss) by reportable segments(Millions of yen)
Reportable segment

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

China

Total

Other
(Note 3)

7,851

5,770

58,390526

58,916

305

50

745

4,717

1,553

6,271

15,533

2,277

7,902

6,516

63,1072,080

65,187

190

(166)

904

1,038

2,780

135

2,915

Japan

UnitedStatesEurope27,346

15,450

1,971

3,530

83

30,877
813

Asia

Total

Note: 1. 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 fivereportable segments.
2. Major countries or regions belong to each reportable segment
Europe ·············· the Czech Republic, Russia, Germany
Asia ················· Thailand, Indonesia, Vietnam
3. “Other” comprises business operations that are not categorized as reportable segments and includes thebusiness activities of domestic subsidiaries, such as the transportation business.
2. Difference between total segment income (loss) for reportable segments and operating income on consolidated
statements of income, and details of the difference (reconciliation of the difference)(Millions of yen)
IncomeAmountTotal segment income
2,780
Income for “Other”
135
Intersegment eliminations(230)
Operating income on consolidated statements of income
2,684
3. Impairment loss on noncurrent assets and goodwill, etc., by reportable segment(Significant impairment loss on noncurrent assets)
Not applicable(Significant change in goodwill amount)Not applicable(Significant gain on bargain purchase)
Not applicable14

II Six months ended September 30, 2018 (from April 1, 2018 to September 30, 2018)
1. Net sales and profit (loss) by reportable segments(Millions of yen)
Reportable segment

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

Japan

UnitedStatesEurope29,73815,882

2,764

Other
(Note 3)

Total

Asia

China

Total

2,268

8,690

10,512

67,091

489

67,580

70

266

34

931

4,067

1,642

5,710

32,502

15,953

2,534

8,724

11,443

71,1592,132

73,291

365

247

(478)

1,167

1,469

2,771

101

2,872

Note: 1. 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 fivereportable segments.
2. Major countries or regions belong to each reportable segment
Europe ·············· the Czech Republic, Russia, Germany
Asia ················· Thailand, Indonesia, Vietnam
3. “Other” comprises business operations that are not categorized as reportable segments and includes thebusiness activities of domestic subsidiaries, such as the transportation business.
2. Difference between total segment income (loss) for reportable segments and operating income on consolidated
statements of income, and details of the difference (reconciliation of the difference)(Millions of yen)
IncomeAmountTotal segment income
2,771
Income for “Other”
101
Intersegment eliminations
201
Operating income on consolidated statements of income
3,073
3. Impairment loss on noncurrent assets and goodwill, etc., by reportable segment(Significant impairment loss on noncurrent assets)
In the segment of “China,” we posted impairment losses of goodwill 192 million yen as an extraordinary loss.
(Significant change in goodwill amount)Not applicable(Significant gain on bargain purchase)
Not applicable15

3. Supplementary information
Sales states (consolidated)(Millions of yen)Six months ended
September 30,2017

Six months ended
September 30, 2018

(Apr. 1, 2017–September. 30, 2017)

Amount%

FY2017

Increase/Decrease(Apr 1.2017-Mar 31,2018)

Amount%Amount(Apr. 1, 2018–September.30, 2018)

Amount%%For Automobile

41,414

70.3

47,940

70.9

6,526

15.8

88,18570.8

For Construction &Industrial machine

12,84321.8

15,108

22.4

2,264

17.6

26,957

21.7

For Air conditioner

2,830

4.8

2,811

4.2

-18

-0.7

5,721

4.6

Other

1,828

3.1

1,720

2.5

-108

-5.9

3,625

2.9

58,916
100.0
67,580Total
Notes: Amounts less than one million yen have been truncated.

100.0

8,664

14.7

124,490100.0

16