Consolidated Financial Results for the 3rd Quarter of Fiscal Year Ending March 31, 2022
(J-GAAP)
February 7, 2022
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 filing of 3rd quarter securities report:
February 8, 2022
Scheduled date of start of dividend payments:―
Supplemental materials prepared for consolidated financial results: None
Briefing on consolidated financial results: None
(Amounts less than one million yen have been truncated)

1. Consolidated Financial Performance for the 3rd Quarter of Fiscal Year Ending March 31, 2022
(April 1, 2021 to December 31, 2021)(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

Nine months ended
97,917
23.1
4,502
5,017
―
December31, 2021
Nine months ended
79,569 -18.0
(299)
(217)
―
December31, 2020
Note: Comprehensive income
Nine months ended December 31, 2021: ¥ 4,579 million ―%Nine months ended December 31, 2020: ¥ —2,588 million ―%Net income per share
Diluted net income per share
Nine months ended
December31, 2021
Nine months ended
December31, 2020

Yen

Yen

435.70―(236.41)―(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Profit attributable toowners of parent% Millions of yen
%

―

3,088

―

―

(1,706)―Equity ratio

Net assets per share

Millions of yen%

Yen

45,84947.4

6,445.76

43,21847.3

5,673.72

Nine months ended
92,105
December31, 2021
Fiscal year ended
86,800March 31, 2021
Reference: Shareholders’ equity
As of December 31, 2021: ¥43,616 million
As of March 31, 2021 : ¥41,048 million

2. Dividends
1Q

2Q
Yen

Dividends per Share
3Q
Yen
Yen

Fiscal year ended
0.00――
March 31, 2021
Fiscal year ending
40.00
―
―
March 31, 2022
Fiscal year ending
March 31, 2022
(Forecast)
Note: Revisions to dividend forecasts since the latest official announcement: None1Year-end
Yen

Total
Yen

0.00

0.00

50.00

90.00

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 sales
Millions ofyen%Operating income

Ordinary income

Millions ofyenMillions of
yen

%

%

Profit attributable toowners of parent
Millions ofyenNetincomeper share%

Yen

Fiscal year ending
134,900
19.3
5,200 311.5
5,000
224.5
2,700
317.8
373.19March 31, 2022
Note: Revisions to the forecast of consolidated financial performance since the latest official announcement: No

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: Yes
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 December 31, 2021: 8,380,711 shares
As of March 31, 2021: 8,380,711 shares
2) Number of shares of treasury stock at end of period
As of December 31, 2021: 1,613,946 shares
As of March 31, 2021: 1,145,779 shares
3) Average number of shares outstanding during the period
Nine months ended December 31, 2021: 7,087,843 shares
Nine months ended December 31, 2020: 7,219,049 shares* 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
We revised the forecast of non-consolidated financial performance released on May 17, 2021.
･Revisions to the forecast of non-consolidated financial performance for the Year Ending March 31, 2022
(From April 1, 2021 to March 31, 2022)
Revised forecast Net sales 69,300 million yen, Operating income 800 million yen,
Ordinary income 4,500 million yen, Net income 3,300 million yen, Net income per share 487.68 yen
Regarding the forecast of consolidated financial performance, we did not revise the forecast released on May
17, 2021, as it is expected that the profit will decrease compared to the forecast. This decrement is due to theimpact of reduced production by customers owing to semiconductor shortages at our subsidiaries, including
U.S. and Chinese subsidiaries.
For details, please refer to “Notice of Revisions to Forecast of Non-Consolidated Financial Performance” that
we announced today (February 7, 2022).
The forward-looking statement such as forecast of financial performance etc. described in this report based on
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 Third Quarter of Fiscal Year Ending March 31, 2022 ···························· 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(Changes of accounting policy) ··················································································· 13(Additional information) ··························································································· 13(Segment information) ····························································································· 14
3. Supplementary information
Sales states (consolidated) ························································································· 16

31. Qualitative Information for the Third Quarter of Fiscal Year Ending March 31, 2022
(1) Consolidated financial performance
Although there were some signs of recovery, the economic environment has remained challenging due to a shortage ofsemiconductors, soaring prices of raw materials, and the influence of the COVID-19 pandemic, etc. in the third quarter ofthe current consolidated cumulative period. There are concerns that the economy will continue to face uncertainty in the
future. It will depend on the resolution of the semiconductor shortage and the recovery trend from the COVID-19
pandemic.
Under the circumstances, the net sales of the T.RAD Group (on a foreign currency basis) largely increased from thesame period of the previous year in domestic and overseas. Operating income increased in all regions. The profit
attributable to owner of parent increased from the same period of the previous year due to the net sales largely increased etc.
despite increase of income taxes.
As a result, net sales during the consolidated cumulative third quarter increased by 18,348 million yen from the previous
fiscal year, amounting to 97,917 million yen (up 23.1% year on year), operating income increased by 4,802 million yen,amounting to 4,502 million yen, ordinary income increased by 5,235 million yen, amounting to 5,017 million yen andprofit attributable to owners of parent increased by 4,794 million yen, amounting to 3,088 million yen.
The segment results are as follows.
The book-closing date for the consolidated subsidiaries for the first nine months of the fiscal year under review isSeptember 30. In preparing the consolidated financial statements, the financial statements as of, and for the nine-month
period ended on this date were used. With respect to material 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 include 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 Sales
Operating Income (Loss)
Nine months Nine months
ended
ended
December 31, December 31,
2020
2021

Japan
United States

EuropeAsia
China

Increase/
Decrease

Percentage change(on a foreign
currency basis)*

Nine months
ended
December 31,
2020

Nine months
ended
December 31,
2021

Increase/
Decrease

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

(Millions of yen)

(Millions of yen)(%)

(1,248)(1,563)
(317)
632
2,099

1,045
(397)
(117)
1,733
2,182

2,293
1,166
199
1,100
82

(Millions of yen)

(Millions of yen)

(Millions of yen)

35,566
17,152
1,875
8,119
16,05744,556
21,677
3,203
10,74817,551

8,989
4,524
1,328
2,629
1,494

25.3
19.4
51.9
25.4
-0.2

－
76.0
66.7
169.1
-6.6

Others(including
eliminations)

798
179
-618
-77.5
98
56
-41
-42.2
Total
79,56997,917
18,348
18.2
(299)
4,502
4,802
－
*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 and construction industrial machines significantly increased from the same
period of the previous year due to an increase in orders etc. As a result, the net sales in the Japan segment increased by
8,989 million yen, resulting in 44,556 million yen.
Operating income increased by 2,293 million yen from the same period of the previous year due to the net sales largely
increased etc., resulting in 1,045 million yen.
(ii) United States
Net sales of products for automobile industry significantly increased from the same period of the previous year due to thecommencement of mass production of models for which orders were newly received etc. Net sales of constructionindustrial machines decreased from the same period of the previous year due to the suspension of production of older
models. As a result, the net sales in the United States segment increased by 4,524 million yen from the same period of theprevious year, resulting in 21,677 million yen. On a foreign currency basis, it increased by 19.4%.
Operating loss of 397 million yen was posted, improved by 1,166 million yen from the same period of the previous year
due to the net sales largely increased etc. On a foreign currency basis, it increased by 76.0%.

4

(iii) Europe
In the Czech Republic and Russia, the net sales of products for automotive industry significantly increased from the same
period of the previous year due to an increase in orders etc. As a result, the net sales in the Europe segment increased by
1,328 million yen from the same period of the previous year, resulting in 3,203 million yen. On a foreign currency basis, it
increased by 51.9%.
Operating loss of 117 million yen was posted, improved by 199 million yen from the same period of the previous year
due to the net sales largely increased etc. On a foreign currency basis, it increased by 66.7%.
(iv) Asia
In Thailand, Indonesia and Vietnam, the net sales of products for automotive industry significantly increased from thesame period of the previous year due to an increase in orders etc. As a result, the net sales in the Asia segment increased by
2,629 million yen from the same period of the previous year, resulting in 10,748 million yen. On a foreign currency basis, it
increased by 25.4%.
Operating income increased by 1,100 million yen from the same period of the previous year due to the net sales largely
increased etc., resulting in 1,733 million yen. On a foreign currency basis, it increased by 169.1%.
(v) China
Net sales of products for automobile industry decreased from the same period of the previous year, due to a decrease insales of commercial vehicles, despite an increase in orders from Japanese customers. Net sales of products for constructionindustrial machines increased from the same period of the previous year, due to an increase in orders etc. As a result, the net
sales in this segment increased by 1,494 million yen from the same period of the previous year, to 17,551 million yen, partly
due to the impact of foreign exchange rates, despite a 0.2% decrease on a foreign currency basis.
Operating income increased by 82 million yen from the same period of the previous year, to 2,182 million yen, partly due
to the impact of foreign exchange rates, although operating income decreased by 6.6% on a foreign currency basis.
(2) Consolidated financial position
1) Assets, liabilities and net assets
Total assets at the end of current third quarter of the fiscal year under review resulted in 92,105 million yen (up 5,304
million yen from the end of the previous fiscal year) due to the increase of accounts receivable-trade and inventories etc.
Total liabilities resulted in 46,255 million yen (up 2,672 million yen) due to the increase of accounts payable-trade etc.
Net assets resulted in 45,849 million yen (up 2,631 million yen) due to the increase of retained earnings and foreign
currency translation adjustment etc.
2) Cash flows
Cash and cash equivalents at the end of the current third quarter of the fiscal year under review totaled 14,308 million yen,decrease of 970 million yen from the end of the previous fiscal year.
The factors for increase or decrease of each cash flow in the current third quarter consolidated accumulative period are
as follows.
Net cash provided by operating activities was 6,772 million yen, an increase of 1,266 million yen year on year due tothe increase of profit before income taxes.
Net cash used in investing activities was 4,402 million yen, an increase of 861 million yen year on year.
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 2,370 million yen (an increase of 405 million yen year-on-year).
Furthermore, net cash used in financing activities was 3,129 million yen, an increase of 3,065 million yen year on year
due to the repayment of long-term loans payable and purchase of treasury stock etc.
(3) Future projections including forecasts of consolidated financial performance
We revised the forecast of non-consolidated financial performance released on May 17, 2021.
Regarding the forecast of consolidated financial performance, we did not revise the forecast released on May 17, 2021, as
it is expected that the profit will decrease compared to the forecast. This decrement is due to the impact of reduced
production by customers owing to semiconductor shortages at our subsidiaries, including U.S. and Chinese subsidiaries.
For details, please refer to “Notice of Revisions to Forecast of Non-Consolidated Financial Performance” that weannounced today (February 7, 2022).

5

2. Quarterly Consolidated Financial Statements and main notes(1) Quarterly consolidated balance sheets(Millions of yen)
FY2021_3Q

FY2020
As of March 31, 2021

As of December 31,

AmountAmount2021(Assets)
Current assets
Cash and deposits

14,403

14,388Notes and accounts receivable-trade24,14525,372

Electronically recorded monetary claims-operating

3,025

3,457

Short-term investment securities

489

489

Merchandise and finished goods

2,962

3,541

Work in process

523

730

Raw materials and supplies

5,290

7,248

Others

2,650

2,776

Allowance for doubtful accounts

(165)

(185)

Total current assets

53,32657,818

Building and structures, net

5,844

5,704

Machinery, equipment and vehicles, net

14,537

14,073

Land

2,344

2,363

Lease assets, net

424

386

Construction in progress

3,642

4,830

Other tangible fixed assets, net

1,883

1,695

Total tangible fixed assets

28,676

29,054

Noncurrent assets
Tangible fixed assets

Intangible assets
Goodwill

11－

Others

1,222

1,483

Total intangible assets

1,234

1,483

Investment securities

2,009

2,179

Net defined benefit asset

848

826

Deferred tax assets

89

134

Others628

614

Allowance for doubtful accounts

(13)

(5)

Total investments and other assets

3,563

3,748

33,47434,28786,80092,105Investments and other assets

Total noncurrent assets
Total assets

6

(Millions of yen)
FY2021_3Q

FY2020
As of March 31, 2021

As of December 31,
2021

AmountAmount(Liabilities)
Current liabilities
13,074

14,464

Electronically recorded obligations – operating

3,295

5,065

Short-term loans payable

10,675

8,649

444

542

Notes and accounts payable-trade

Lease obligations
Income taxes payable

484

603

Accrued expenses

2,628

2,843

Provision for bonuses

1,116

812

Provision for directors’ bonuses－

45

Provision for product warranties

578

524

Provision for loss on order received

148

156

Electronically recorded obligations - non-operating

461

419

Others

1,774

1,497

Total current liabilities

34,681

35,626Long-term loans payable

5,910

7,565

Lease obligations

1,856

1,594

Deferred tax liabilities

694

1,028

Net defined benefit liability

230

241

Asset retirement obligations

91

92

Noncurrent liabilities

Others117

106

Total noncurrent liabilities

8,900

10,62843,582

46,255

8,570

8,570

Total liabilities(Net assets)
Shareholders’ equity
Capital stock
Capital surplus

7,521

7,533

Retained earnings

27,46630,272

Treasury stock(2,258)(3,722)

Total shareholders’ equity

41,29942,654Foreign currency translation adjustment(1,171)50

Remeasurements of defined benefit plans

920

912

Accumulated other comprehensive income

(250)

962

Non-controlling interests

2,169

2,233

Total net assets

43,21845,849Total liabilities and net assets

86,80092,105

Total accumulated other comprehensive income7(2) Quarterly consolidated statements of income and quarterly consolidated statement of comprehensive income(Quarterly consolidated statements of income)(Millions of yen)
Nine months ended
December 31, 2021

Nine months ended
December 31, 2020
(Apr. 1, 2020–December 31, 2020)(Apr. 1, 2021–December 31, 2021)

AmountAmountNet sales

79,56997,917

Cost of sales

73,17485,859Gross profit

6,394

12,057

Packing and delivery expenses

947

1,336

Salaries and allowances

1,576

1,757

Provision for bonuses

147

215

0

45

Selling, general and administrative expenses

Provision for directors’ bonuses
Retirement benefit expenses

63

56

Welfare expenses

836

861

Provision for product warranties

180

394

Research and development expenses

851

914

Others

2,091

1,973

Total selling, general and administrative expenses

6,693

7,555

Operating income (loss)

(299)

4,502

Interest income

95

112

Dividends income32

Equity in earnings of affiliates－

303

Foreign exchange gains

17

105

Non-operating income

Subsidy income

112

8

Others197

170

Total non-operating income

427

703

Interest expenses

210

174

Equity in losses of affiliates

122－

Others13

14

Non-operating expenses

Total non-operating expenses

345

188

Ordinary income (loss)

(217)

5,017

8

(Millions of yen)
Nine months ended
December 31, 2021

Nine months ended
December 31, 2020
(Apr. 1, 2020–December 31, 2020)(Apr. 1, 2021–December 31, 2021)

AmountAmountExtraordinary income
Gain on sales of noncurrent assets

43

10

Reversal of allowance for doubtful accounts－

5

Gain on sales of golf memberships－

11

Total extraordinary income

43

26

Loss on sales of noncurrent assets

33

6

Loss on retirement of noncurrent assets

156

64

Loss on liquidation of subsidiaries and associates

11－

Surcharges

3－

Total extraordinary loss

205

71

Income (loss) before income taxes

(379)

4,972

Income taxes-current

1,030

1,502

Income taxes-deferred

(17)

293

Total income taxes

1,013

1,795

Profit (loss)(1,393)

3,176

313

88

(1,706)

3,088

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）
Nine months ended
December 31, 2021

Nine months ended
December 31, 2020
(Apr. 1, 2020–December 31, 2020)(Apr. 1, 2021–December 31, 2021)

AmountAmount(1,393)

3,176

1

－

(1,057)

1,451

(5)

(8)

(134)

(40)

Total other comprehensive income(1,195)

1,403

Comprehensive income(2,588)4,579

Comprehensive income attributable to owners of the parent(2,855)

4,301

Comprehensive income attributable to non-controlling interests

267

278

Profit (loss)
Other 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 associates accounted for using equity
method(Breakdown)

10(3) Quarterly consolidated statements of cash flows(Millions of yen)
Nine months ended
December 31, 2021

Nine months ended
December 31, 2020
(Apr. 1, 2020–December 31, 2020)(Apr. 1, 2021–December 31, 2021)

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

(379)

4,972

Depreciation and amortization

4,679

4,232

Retirement benefit expenses

(9)

(13)

Increase(decrease) in net defined benefit liability

46

31

Increase (decrease) in provision for directors' retirement benefits(4)－

Increase (decrease) in allowance for doubtful accounts

90

(2)

Increase (decrease) in provision for bonuses

(762)

(305)

Increase (decrease) in provision for directors' bonuses

(43)

45

Increase (decrease) in provision for product warranties

33

(69)

Loss on retirement of noncurrent assets

156

64

Loss(gain) on sales of tangible fixed assets

(9)

(3)

Surcharges

3－

Interest and dividends income

(99)

(115)

Interest expenses

210

174

Foreign exchange losses (gains)

(11)

(39)

Equity in (earnings) losses of affiliates

122

(303)

Decrease(increase) in notes and accounts receivable-trade

249

(632)

Decrease(increase) in inventories

765(2,240)

Increase(decrease) in notes and accounts payable-trade

1,741

2,473

Decrease(increase) in other current assets

(183)

(236)

Increase (decrease) in other current liabilities

261

(31)

Other, net

60

46

Subtotal

6,916

8,047

91

208

Interest expenses paid

(205)

(159)

Income taxes paid

(1,294)(1,323)

(3)

－

5,505

6,772

Interest and dividends income received

Surcharges paid
Net cash provided by (used in) operating activities

11

(Millions of yen)
Nine months ended
December 31, 2021

Nine months ended
December 31, 2020
(Apr. 1, 2020–December 31, 2020)(Apr. 1, 2021–December 31, 2021)

AmountAmountNet cash provided by (used in) investing activities(3,524)Purchase of tangible assets(3,727)

Proceeds from sales of tangible fixed assets

174

26

Purchase of intangible assets

(210)

(406)

1

7

Payments into time deposit(786)(1,036)

Proceeds from withdrawal of time deposits

761

765

Payments for asset retirement obligations

－

(100)

Others42

69(3,540)(4,402)

Proceeds from sales of investment securities

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

1,616

(647)

Proceeds from long-term loans payable

－

3,820

Repayment of long-term loans payable(760)(4,096)(0)(1,501)

Cash dividends paid

(359)

(281)

Cash dividends paid to non-controlling shareholders

(97)

(103)

(59)

－

Net increase (decrease) in short-term loans payable

Purchase of treasury stock

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

(402)

(319)

Net cash provided by (used in) financing activities(64)(3,129)Effect of exchange rate change on cash and cash equivalents

(346)

452

Net increase (decrease) in cash and cash equivalents

1,554

(306)

Cash and cash equivalents at beginning of period

13,724

14,614

Cash and cash equivalents at end of period

15,27914,30812

(4) Notes to quarterly consolidated financial statements(Going concern assumptions)Not applicable(Notes in the event of significant changes in shareholders’ equity)
Based on the resolution of the Board of Directors’ meeting held on July 20, 2021, we disposed of 18,047
shares of treasury stock on August 20, 2021, as restricted stock compensation for Directors and Managing
Executive Officers. Furthermore, we purchased 485,700 shares of treasury stock based on the resolution of theBoard of Directors meeting held on August 2, 2021.
As a result, treasury stock increased by1,462 million yen and capital surplus (gain on the disposal of treasury
stock) increased by 12 million yen in the third quarter of the current consolidated cumulative period. As of theend of the third quarter of the current consolidated cumulative period, the treasury stock amounted to 3,722
million yen, and the capital surplus amounted to 7,533 million yen.
(Changes of accounting policy)(Application of accounting standard for revenue recognition)
We have applied the Accounting Standard for Revenue Recognition (hereinafter referred to as the “ASRR”)
under Statement No. 29, March 31, 2020, of the Accounting Standards Board of Japan (ASBJ) since thebeginning of the first quarter of the current consolidated account period. We recognize revenue as the amountreceivable in exchange for goods or services when the possession of the promised goods or services is transferredto the customer.
As a result of the adoption of the ASRR, We have changed from recognition of the cancellation of paid-for
supplies in paid-for transactions to non-recognition of the cancellation of such supplies if we are obligated torepurchase the supplies.
We have complied with the transitional treatment prescribed in the provision of Paragraph 84 of the ASRR to
apply ASRR, adjusted retained earnings per the cumulative effect of retroactively applying the new accounting
policy before the current first quarter to at the beginning of the current quarter and applied the new accounting
policy to the balance at the beginning of this quarter. However, following the method specified in Paragraph 86of the ASRR, we have not applied the new accounting policy retrospectively to contracts for which almost all
revenues were recognized per the previous treatment before the beginning of the first quarter of the current
consolidated cumulative period. Furthermore, we have applied the method prescribed in Paragraph 86 (1) of the
ASRR, conducted account processing for changes in contracts made before the first quarter of the current
consolidated cumulative period based on the contract terms after reflecting all contract changes and adjusted theretained earnings per the cumulative effect of the changes at the beginning of the first quarter of the current
consolidated cumulative period.
As a result, the cost of sales for the third cumulative quarterly consolidated accounting period decreased by 24
million yen. The operating income, ordinary income, and quarterly net profit before taxes each increased by 24
million yen. The balance of retained earnings at the beginning of the current quarter decreased by 1 million yen.
Following the transitional treatment prescribed in Paragraph 28-15 of the Accounting Standard for Quarterly
Financial Reporting (ASBJ Statement No. 12, March 31, 2020), we did not provide information which is broken
down by category on revenue from contracts with customers for the third quarter of the previous consolidated
cumulative period, broken down by category.
(Application of accounting standard for the fair value measurement)
We have applied the Accounting Standard for Fair Value Measurement (hereinafter referred to as the “Fair
Value Measurement Standard”) under Statement No. 30, July 4, 2019, of the Accounting Standards Board ofJapan (ASBJ) since the beginning of the first quarter of the consolidated cumulative period. Under thetransitional treatment prescribed in Paragraph 19 of the Fair Value Measurement Standard and Paragraph 44-2 ofthe Accounting Standards for Financial Instruments (ASBJ Statement No. 10, July 4, 2019), we will apply the
new accounting policy prescribed by the Fair Value Measurement Standard prospectively. This arrangement does
not affect the quarterly consolidated financial statements.
(Additional information)(About the accounting estimate associated with the spread of novel coronavirus infections)
There has been no notable change in the assumptions regarding the impact of novel coronavirus infections on
the Group’s business as described in the Additional Information section of the Annual Securities Report for theprevious fiscal year.

13

(Segment information)
I Nine months ended December 31, 2020 (from April 1, 2020 to December 31, 2020)
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)

Asia

China

Total

Others(Note 3)

1,875

8,119

16,057

78,771

798

79,569

188

177

82

1,059

5,380

1,322

6,703

39,43917,341

2,052

8,202

17,116

84,151

2,120

86,272(1,248)(1,563)

(317)

632

2,099

(397)

18

(379)

Japan

UnitedStatesEurope35,566

17,152

3,872

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. “Others” 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)
Income or loss
AmountTotal segment income(loss)(397)
Income(loss) for “Others”
18
Intersegment eliminations
79
Operating income on consolidated statements of income(loss)(299)
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 Nine months ended December 31, 2021 (from April 1, 2021 to December 31, 2021)
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)

Others(Note 3)

Total

UnitedStatesEurope44,556

21,677

3,203

10,74817,55197,738179

97,917

5,650

90

201

138

1,423

7,504

1,436

8,940

50,207

21,767

3,405

10,886

18,975105,242

1,615

106,857

1,045

(397)

(117)

1,733

2,182

4,445

38

4,484

Japan

Asia

China

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. “Others” 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)
Income or loss
AmountTotal segment income
4,445
Income for “Others”
38
Intersegment eliminations
18
Operating income on consolidated statements of income
4,502
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 applicable15

3. Supplementary information
Sales states (consolidated)(Millions of yen)
Nine months ended
December 31, 2020

Nine months ended
December 31, 2021

(Apr. 1, 2020–December.31, 2020)(Apr. 1, 2021–December.31, 2021)

Amount%Amount%FY2020

Increase/Decrease(Apr 1.2020-Mar 31,2021)

AmountAmount%%For Automobile

60,03675.5

71,34372.9

11,30718.8

85,81775.9

For Construction &Industrial machine

15,866

19.9

23,080

23.6

7,213

45.5

22,381

19.8

For Air conditioner

1,510

1.9

1,621

1.6

110

7.3

1,961

1.7

Other

2,155

2.7

1,872

1.9

-282

-13.1

2,885

2.6

79,569100.0
97,917
Total
Notes: Amounts less than one million yen have been truncated.

100.0

18,34823.1

113,046100.0

16