Consolidated Financial Results for the 3rd Quarter of Fiscal Year Ending March 31, 2023
(J-GAAP)
February 6, 2023
Company name: T.RAD Co., Ltd.
Listing: Tokyo Stock Exchange, Prime Market
Code No.:
7236
URL: http://www.trad.co.jp
Representative: Tomio Miyazaki, President & CEO & COO
Contact:
Norio Kanai, Managing Director & CFO
Tel:+81-3-3373-1101
Scheduled date of filing of 3rd quarter securities report:
February 7, 2023
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, 2023
(April 1, 2022 to December 31, 2022)(1) Consolidated operating performance(Percentage figures indicate year-on-year change)
Net sales

Operating income

Millions of yen% Millions of yen

Ordinary income% Millions of yen

Nine months ended
116,365
18.8
675
-85.0
1,484
December31, 2022
Nine months ended
97,917
23.1
4,502
5,017
―
December31, 2021
Note: Comprehensive income
Nine months ended December 31, 2022: ¥ 4,109 million (-10.3%)
Nine months ended December 31, 2021: ¥ 4,579 million (―%)
Net income per share
Diluted net income per share
Nine months ended
December31, 2022
Nine months ended
December31, 2021

Yen

Yen

(58.06)―435.70―(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Profit attributable toowners of parent% Millions of yen
%

-70.4

(379)

―

―

3,088

―

Equity ratio

Net assets per share

Millions of yen%

Yen

49,22445.3

7,271.27

46,73247.5

6,810.22

Nine months ended
104,718
December31, 2022
Fiscal year ended
93,756
March 31, 2022
Reference: Shareholders’ equity
As of December 31, 2022: ¥47,430 million
As of March 31, 2022 : ¥44,504 million

2. Dividends
1Q

2Q
Yen

Dividends per Share
3Q
Yen
Yen

Year-end

Total
Yen

Yen

Fiscal year ended
40.00
120.00160.00――March 31, 2022
Fiscal year ending
80.00
―
―
March 31, 2023
Fiscal year ending
March 31, 2023
0.00
80.00
(Forecast)
Note: Revisions to dividend forecasts since the latest official announcement: Yes
For revisions to dividend forecasts, please refer to “Notice of Revisions to Forecasts of Financial Performance and Dividend
Forecasts” that we announced today (February 6, 2023).

1

3. Forecast of Consolidated Financial Performance for the Fiscal Year Ending March 31, 2023
(April 1, 2022 to March 31, 2023
(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
income per
share
Yen

Fiscal year ending
150,200
12.4
1,100 -78.2
2,100
-65.0
(3,700)(567.23)―
March 31, 2023
Note: Revisions to the forecast of consolidated financial performance since the latest official announcement: Yes
For revisions to forecasts of consolidated and non-consolidated financial performance, please refer to “Notice of Revisions
to Forecasts of Financial Performance and Dividend Forecasts” that we announced today (February 6, 2023).

4. Other(1) Changes in significant subsidiaries during the current quarter(changes in specific subsidiaries resulting in changes in the scope of consolidation): Yes(Note)Excluded:2, TRM LLC, TRM Corporation B.V.
(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 December 31, 2022: 6,712,411 shares
As of March 31, 2022: 6,712,411 shares
2) Number of shares of treasury stock at end of period
As of December 31, 2022: 189,455 shares
As of March 31, 2022: 177,519 shares
3) Average number of shares outstanding during the period
Nine months ended December 31, 2022: 6,528,920 shares
Nine months ended December 31, 2021: 7,087,843 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
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, 2023 ···························· 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 Third Quarter of Fiscal Year Ending March 31, 2023
(1) Consolidated financial performance
The economic environment showed signs of picking up during the third quarter of the current consolidated cumulative
period. However, there are concerns that the difficult situation will continue due to the prolonged invasion of Ukraine,
deteriorating Chinese demand associated with the impact of novel coronavirus, a shortage of semiconductors, and soaring raw
material prices etc.
Under the circumstances, the net sales of the T.RAD Group (on a foreign currency basis) increased from the same period of
the previous year except China. Operating income decreased from the same period of the previous year except Asia due tosoaring costs of materials and parts etc. In addition, the deconsolidation of Russian subsidiaries resulted in extraordinary loss of
401 million yen. The profit attributable to owners of parent also decreased year-on-year.
As a result, net sales during the consolidated cumulative third quarter increased by 18,448 million yen from the previous
fiscal year, amounting to 116,365 million yen (up 18.8% year on year), operating income decreased by 3,827 million yen,amounting to 675 million yen (down 85.0% year on year) and ordinary income decreased by 3,533 million yen, amounting to
1,484 million yen (down 70.4% year on year). Loss attributable to owners of parent of 379 million yen was posted, worsening
by 3,467 million yen year on year.
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 is September
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,
2021
2022

Japan
United States

EuropeAsia
China

Increase/
Decrease

Percentage change(on a foreign
currency basis)*

Nine months
ended
December 31,
2021

Nine months
ended
December 31,
2022

Increase/
Decrease

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

(Millions of yen)

(Millions of yen)

(%)

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

1,000
(3,011)
(442)
2,098
846

-45
-2,613-324
364-1,335(Millions of yen)

(Millions of yen)

(Millions of yen)

44,556
21,677
3,203
10,74817,551

48,98831,0194,241
14,455
17,490

4,431
9,342
1,037
3,706
-61

9.9
10.6
4.2
11.6
-14.8

-4.3
－
－
1.3
-67.1

Others(including
eliminations)

179
170
-8
-4.7
56
184
127
225.3
Total
97,917116,365
18,448
5.4
4,502
675
-3,827-86.8*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
The net sales of products for automobile industry remained steady, despite the impact of a semiconductor shortage and otherfactors. The net sales of products for construction industrial machines were generally favorable, both increasing from the same
period of the previous year. As a result, the net sales in the Japan segment increased by 4,431 million yen, resulting in 48,988
million yen.
Operating income decreased by 45 million yen from the same period of the previous year to 1,000 million yen due to thesoaring costs of materials, parts, and electricity etc.
(ii) United States
Net sales of products for automotive industry increased from the same period of the previous year due to the commencementof mass production of models for which orders were newly received. As a result, the net sales in the United States segment
increased by 9,342 million yen from the same period of the previous year, resulting in 31,019 million yen. On a foreign
currency basis, it increased by 10.6%.
The operating income decreased by 2,613 million yen year-on-year, resulting in operating loss of 3,011 million yen due to thesoaring costs of materials and parts and an increase in labor and distribution expenses etc. The costs of materials, parts, anddistribution increased significantly. This increase was due in part to market price rises. In addition, there was a lockdown due tothe COVID-19 pandemic in the countries from which parts are procured. The supply instability caused by the lockdown
increased these costs due to temporary changes in suppliers and transportation methods. The labor costs increased, partly due towage increases to resolve personnel shortages. In addition, the cost increase was not passed on to customers as planned,
resulting in a significant decrease in profit.
4

(iii) Europe
The net sales of products for automobile industry increased year-on-year mainly due to an increase in orders for heavy-duty
trucks in the Czech Republic. The net sales in this segment increased by 1,037 million yen from the same period of the previous
year, to 4,241 million yen. On a foreign currency basis, it increased by 4.2%.
Operating income decreased by 324 million yen year-on-year, resulting in operating loss of 442 million yen due to soaring
costs of materials, parts, and electricity etc.
<Withdrawal from Russian Business>
On April 5, 2022, we announced our intention to withdraw from the Russian market. In this connection, in September 2022,
the procedure to make the Company’s non-voting share conversion was completed. Therefore, we have excluded our Russian
subsidiary TRM LLC and Dutch holding company TRM Corporation B.V. from the scope of consolidation as of the end of thesecond quarter of the current consolidated cumulative period. The second quarter income statement for both subsidiaries (forJanuary 2022 through June 2022) is included in the consolidated income statement for the nine months ending December 31,
2022. However, the income statements of those companies from the third quarter onward (after July 2022) will not be includedin the current fiscal year’s income statement. Furthermore, the balance sheets as of the end of June 2022 for both subsidiaries
are not included in our balance sheet as of December 31, 2022.
(iv) Asia
The net sales of products for automobile industry increased from the same period of the previous year. This increase was dueto the start of the mass production of newly ordered models in Thailand and the recovery of orders in Indonesia and Vietnam.
As a result, the net sales in the Asia segment increased by 3,706 million yen from the same period of the previous year, resulting
in 14,455 million yen. On a foreign currency basis, it increased by 11.6%.
Operating income increased by 364 million yen from the same period of the previous year, resulting in 2,098 million yen. On
a foreign currency basis, it increased by 1.3%.
(v) China
The net sales of products for automobile industry and construction industrial machines decreased from the same period of theprevious year, mainly due to deteriorating Chinese demand associated with the impact of novel coronavirus and a shortage ofsemiconductors etc. As a result, the net sales in this segment decreased by 61 million yen from the same period of the previous
year, to 17,490 million yen. On a foreign currency basis, it decreased by 14.8%.
Operating income was 846 million yen. It decreased by 1,335 million yen from the same period of the previous year due toa significant decrease in sales of products for commercial vehicles to local customers at a subsidiary in Qingdao and theprovision for product warranties recorded (673 million yen). On a foreign currency basis, it decreased by 67.1%.
(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 104,718 million yen (up 10,962
million yen from the end of the previous fiscal year) due to the increase of accounts receivable-trade, inventories and tangible
fixed assets etc.
Total liabilities resulted in 55,494 million yen (up 8,469 million yen) due to the increase of accounts payable-trade and loans
payable etc.
Net assets resulted in 49,224 million yen (up 2,492 million yen) due to the increase of foreign currency translation
adjustment etc.
2) Cash flows
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 4,570 million yen, a decrease of 2,202 million yen year on year due to thedecrease of profit before income taxes and increase of income taxes paid etc.
Net cash used in investing activities was 5,324 million yen, a decrease of 922 million yen year on year due to the increase ofcapital investment etc.
Free cash flow, the sum of net cash provided by operating activities and net cash used in investing activities, decreased by
3,125 million yen year-on-year. The result was a cash outflow of 754 million yen.
Furthermore, net cash used in financing activities was 1,391 million yen, an increase of 1,737 million yen year on year due
to the increase of loans payable and decrease of purchase of treasury stock etc.
As an above result, cash and cash equivalents at the end of the current third quarter of the fiscal year under review totaled
12,296 million yen, decrease of 2,011 million yen from the end of the previous fiscal year.
(3) Future projections including forecasts of consolidated financial performance
We revised the forecasts of consolidated and non-consolidated financial performance released on May 16, 2022. For details,
please refer to “Notice of Revisions to Forecasts of Financial Performance and Dividend Forecasts” that we announced
today (February 6, 2023).
5

2. Quarterly Consolidated Financial Statements and main notes(1) Quarterly consolidated balance sheets(Millions of yen)
FY2022_3Q

FY2021
As of March 31, 2022

As of December 31,

AmountAmount2022(Assets)
Current assets
Cash and deposits

13,264

12,502

Notes receivable-trade

2,004

1,014

Electronically recorded monetary claims-operating

3,012

3,308

Accounts receivable-trade23,832

27,882

Short-term investment securities

489

489

Merchandise and finished goods

3,805

4,615

Work in process

902

852

Raw materials and supplies

8,152

10,567

Others

2,542

2,959

Allowance for doubtful accounts

(172)

(208)

Total current assets

57,83563,984

Building and structures, net

5,715

6,877

Machinery, equipment and vehicles, net

15,077

17,275

Land

2,384

2,482

Lease assets, net

364

1,419

Construction in progress

4,904

3,681

Other tangible fixed assets, net

1,754

2,248

Total tangible fixed assets

30,20033,984

Others

1,613

2,039

Total intangible assets

1,613

2,039

Investment securities

2,392

2,847

Net defined benefit asset

1,020

998

Deferred tax assets

149

241

Others549

627

Allowance for doubtful accounts

(5)

(5)

Total investments and other assets

4,106

4,710

Noncurrent assets
Tangible fixed assets

Intangible assets

Investments and other assets

Total noncurrent assets
Total assets

6

35,92140,73493,756

104,718

(Millions of yen)
FY2022_3Q

FY2021
As of March 31, 2022

As of December 31,

AmountAmount2022(Liabilities)
Current liabilities
Notes and accounts payable-trade

13,994

16,320Electronically recorded obligations – operating

4,249

6,382

Short-term loans payable

10,39011,836

Lease obligations

495

493

Income taxes payable

948

492

Accrued expenses

3,081

3,629

Provision for bonuses

1,421

898

Provision for directors’ bonuses

72

41

Provision for product warranties

272

880

Provision for loss on order received

187

207

Electronically recorded obligations - non-operating

474

845

Others

1,788

1,342

Total current liabilities

37,37743,369Long-term loans payable

6,720

7,623

Lease obligations

1,576

2,755

Deferred tax liabilities

867

1,187

Net defined benefit liability

287

341

Provision for share awards－

25

Asset retirement obligations

92

92

Others102

99

Total noncurrent liabilities

9,646

12,12447,02455,494

8,570

8,570

Noncurrent liabilities

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

7,352

7,353

Retained earnings

27,00425,317

Treasury stock

(421)

(452)

Total shareholders’ equity

42,50540,789－9Foreign currency translation adjustment

948

5,594

Remeasurements of defined benefit plans

1,049

1,036

Total accumulated other comprehensive income

1,998

6,641

Non-controlling interests

2,228

1,794

Total net assets

46,732

49,224

Total liabilities and net assets

93,756

104,718

Accumulated other comprehensive income
Valuation difference on available-for-sale securities7(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, 2022

Nine months ended
December 31, 2021
(Apr. 1, 2021–December 31, 2021)(Apr. 1, 2022–December 31, 2022)

AmountAmountNet sales

97,917116,365

Cost of sales

85,859107,167

Gross profit

12,057

9,198

Packing and delivery expenses

1,336

1,253

Salaries and allowances

1,757

1,832

Provision for bonuses

215

230

Provision for directors’ bonuses

45

41

Selling, general and administrative expenses

Retirement benefit expenses

56

52

Welfare expenses

861

1,152

Provision for product warranties

394

1,041

Research and development expenses

914

856

Provision for share awards－

25

Others

1,973

2,037

Total selling, general and administrative expenses

7,555

8,522

Operating income (loss)

4,502

675

112

96

Non-operating income
Interest income25Equity in earnings of affiliates

303

315

Foreign exchange gains

105

421

8

－

Others170

216

Total non-operating income

703

1,056

Interest expenses

174

229

Others

14

18

Dividends income

Subsidy income

Non-operating expenses

Total non-operating expenses

188

247

Ordinary income (loss)

5,017

1,484

8

(Millions of yen)
Nine months ended
December 31, 2022

Nine months ended
December 31, 2021
(Apr. 1, 2021–December 31, 2021)(Apr. 1, 2022–December 31, 2022)

AmountAmountExtraordinary income
1012

Reversal of allowance for doubtful accounts

5－

Gain on sales of golf memberships

11－

Total extraordinary income

26

12Loss on sales of noncurrent assets

615

Loss on retirement of noncurrent assets

64

59

Loss on reversal of foreign currency translation adjustment－

401

Total extraordinary loss

71

477

Income (loss) before income taxes

4,972

1,019

Income taxes-current

1,502

1,638

Gain on sales of noncurrent assets

Extraordinary loss

Income taxes-deferred

293

229

Total income taxes

1,795

1,867

Profit (loss)

3,176

(847)

88

(468)

3,088

(379)

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, 2022

Nine months ended
December 31, 2021
(Apr. 1, 2021–December 31, 2021)(Apr. 1, 2022–December 31, 2022)

AmountAmount3,176

Profit (loss)(847)

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

－

9

1,451

4,791

(8)

(12)

(40)

168

Total other comprehensive income

1,403

4,957

Comprehensive income

4,579

4,109

Comprehensive income attributable to owners of the parent

4,301

4,263

Comprehensive income attributable to non-controlling interests

278

(154)

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, 2022

Nine months ended
December 31, 2021
(Apr. 1, 2021–December 31, 2021)(Apr. 1, 2022–December 31, 2022)

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

4,972

1,019

Depreciation and amortization

4,232

4,740

Retirement benefit expenses

(13)

(17)

Increase(decrease) in net defined benefit liability

31

35

(2)

7

(305)

(527)

Increase (decrease) in provision for directors' bonuses

45

(30)

Increase (decrease) in provision for product warranties

(69)

569

Loss on retirement of noncurrent assets

64

59

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses(3)3Interest and dividends income

(115)

(102)

Interest expenses

174

229

Loss(gain) on sales of tangible fixed assets

Foreign exchange losses (gains)

(39)

(39)

Equity in (earnings) losses of affiliates

(303)

(315)

Decrease(increase) in notes and accounts receivable-trade(632)(1,069)Decrease(increase) in inventories(2,240)(1,877)

Increase(decrease) in notes and accounts payable-trade

2,473

2,912

－

401

Decrease(increase) in other current assets

(236)

(210)

Increase (decrease) in other current liabilities

(31)

958

Other, net

46

58

Subtotal

8,047

6,804

Interest and dividends income received

208

132

Interest expenses paid

(159)

(227)

Income taxes paid

(1,323)(2,139)Net cash provided by (used in) operating activities

6,772

4,570

Loss on reversal of foreign currency translation adjustment

11

(Millions of yen)
Nine months ended
December 31, 2022

Nine months ended
December 31, 2021
(Apr. 1, 2021–December 31, 2021)(Apr. 1, 2022–December 31, 2022)

AmountAmountNet cash provided by (used in) investing activities(3,727)Purchase of tangible assets
Proceeds from sales of tangible fixed assets
Purchase of intangible assets
Proceeds from sales of investment securities(4,580)

26

106

(406)

(565)

7

－

(1,036)(1,245)

Proceeds from withdrawal of time deposits

765

963

Payments for asset retirement obligations

(100)

－

69

(3)

(4,402)(5,324)

Payments into time deposit

OthersNet cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable

(647)

(333)

Proceeds from long-term loans payable

3,820

3,140

Repayment of long-term loans payable(4,096)(2,184)Purchase of treasury stock(1,501)(116)

Cash dividends paid

(281)

(1,307)

Cash dividends paid to non-controlling shareholders

(103)

(224)

Others

(319)

(365)

Net cash provided by (used in) financing activities(3,129)(1,391)

Effect of exchange rate change on cash and cash equivalents

452

1,219

Net increase (decrease) in cash and cash equivalents

(306)

(927)

Cash and cash equivalents at beginning of period

14,614

13,404－(180)

14,30812,296

Decrease in cash and cash equivalents resulting from exclusion of subsidiaries
from consolidation
Cash and cash equivalents at end of period12(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 August 8, 2022, we purchased 25,100 shares oftreasury stock on August 9, 2022. Furthermore, based on the resolution of the Board of Directors’ meeting held on
July 19, 2022, we disposed of 13,599 shares of treasury stock on August 19, 2022, as restricted stock compensation
for Directors and Managing Executive Officers.
As a result, treasury stock increased by 30 million yen and capital surplus (gain on the disposal of treasury stock)
increased by 1 million yen in the third quarter of the current consolidated cumulative period. As of the end of thethird quarter of the current consolidated cumulative period, the treasury stock amounted to 452 million yen, and thecapital surplus amounted to 7,353 million yen.
(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 the COVID 19 pandemic on theGroup’s business as described in the Additional Information section of the Annual Securities Report for theprevious fiscal year.
(Transactions in which the Company’s shares are issued to employees through a trust)(1) Outline of transaction
At a meeting of the Board of Directors held on May 16, 2022, the Company resolved details of a new incentive
plan called the Employee Stock Ownership Plan (J-ESOP, hereinafter referred to as the “Plan”) for employees.
The Plan is a system to provide the Company’s shares to its employees who satisfy certain requirements under the
Share Benefit Regulations to be established by the Company in advance.
The Company will grant points to its employees based on their position, performance, and other factors. The
Company’s shares equivalent to the points granted will be paid to the employees when they acquire the right ofentitlement under certain conditions stipulated in the Share Benefit Regulations. The shares to be provided to
employees shall be acquired following the amount set up in advance, including the future portion, and shall be
segregated and managed as trust assets.
The introduction of the Plan will enable employees to share the economic benefits with shareholders byreflecting the benefits in the Company’s stock price based on the Company’s performance. As “working
shareholders,” the Company will increase its employees’ sense of ownership and participation in management
even more than before. At the same time, the Plan is intended to share the Company’s vision and plans andcontribute to the Company’s sustainable growth through a high level of voluntary commitment and challenge.
(2) Shares of the Company remaining in the trust
The Company’s shares remaining in the trust are recorded as treasury stock under net assets at their book value.
The book value of the Company’s shares at the end of the third quarter of the current consolidated cumulative
period is 49 million yen, and the number of shares is 22,100.
(Transition from a consolidated tax payment system to a group totalization system)
Since the first quarter of the current consolidated cumulative period, the Company and its consolidated domestic
subsidiaries have shifted from a consolidated tax payment system to a group totalization system. Accordingly, theaccounting treatment and disclosure of corporate and local income taxes and tax-effect accounting have beenchanged following the Treatment for Auditing of Reserve under Special Taxation Measures Law and Reserve
under Special Laws (Practical Issues Task Force No. 42, August 12, 2021). Furthermore, in accordance with
Paragraph 32 (1) of the Practical Issues Task Force No. 42, the Company has assumed that there is no impact fromthe change in accounting policy resulting from the adoption of the Practical Issues Task Force No. 42.

13

(Segment information)
I 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)

China

Total

Others(Note 3)

10,74817,55197,738179

97,917

201

138

1,423

7,504

1,436

8,940

21,767

3,405

10,886

18,975105,242

1,615

106,857

(397)

(117)

1,733

2,182

4,445

38

4,484

UnitedStatesEurope44,556

21,677

3,203

5,650

90

50,207
1,045

Japan

Asia

Total

Note: 1. Our Group consists of the Company and these overseas corporations which are based on a manufacturing andsales structure. As such, “Japan”, “the United States”, “Europe”, “Asia” and “China” are our five reportablesegments.
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 applicable14

II Nine months ended December 31, 2022 (from April 1, 2022 to December 31, 2022)
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

UnitedStatesEurope48,98831,0194,241

14,455

17,490116,195

170

116,365

5,531

77

90

309

1,794

7,802

1,510

9,312

54,52031,096

4,331

14,764

19,284

123,997

1,680

125,678

1,000(3,011)

(442)

2,098

846

490

37

528

Japan

Asia

China

Total

Note: 1. Our Group consists of the Company and these overseas corporations which are based on a manufacturing andsales structure. As such, “Japan”, “the United States”, “Europe”, “Asia” and “China” are our five reportablesegments.
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
490
Income for “Others”
37
Intersegment eliminations
147
Operating income on consolidated statements of income
675
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, 2021

Nine months ended
December 31, 2022

(Apr. 1, 2021–December.31, 2021)(Apr. 1, 2022–December.31, 2022)

AmountAmountAmount%FY2021

Increase/Decrease(Apr 1.2021-Mar 31,2022)

Amount%Amount%For Automobile

71,34372.9

89,71977.1

18,37525.8

97,45273.0

For Construction &Industrial machine

23,08023.6

22,881

19.7

-198

-0.9

31,814

23.8

For Air conditioner

1,621

1.6

1,629

1.4

7

0.5

2,128

1.6

Other

1,872

1.9

2,136

1.8

264

14.1

2,186

1.6

97,917100.0
116,365
Total
Notes: Amounts less than one million yen have been truncated.

100.0

18,44818.8

133,581100.0

16