Consolidated Financial Results for the Fiscal Year Ended March 31, 2023(J-GAAP)May 15, 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
Yasushi Hotta, Managing Executive Officer,
Contact:
Tel:+81-3-3373-1101
Finance & Accounting Dept.
Scheduled date of the Ordinary General Meeting of Shareholders: June 27, 2023
Scheduled date of filing of securities report:
June 27, 2023
Scheduled date of start of dividend payments:―
Supplemental materials prepared for consolidated financial results: None
Briefing on consolidated financial results: Yes(Amounts less than one million yen have been truncated)

1. Consolidated Financial Performance for the Fiscal Year Ended March 31, 2023
(April 1, 2022 to March 31, 2023)(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

Fiscal year ended
149,41311.9
1,050 -79.2
March 31, 2023
Fiscal year ended
133,58118.2
5,041 298.7
March 31, 2022
Note: Comprehensive income
Fiscal year ended March 31, 2023: ¥ －1,165 million (―%)
Fiscal year ended March 31, 2022: ¥ 6,163 million (―%)
Net income per
share

Profit attributable toowners of parent% Millions of yen
%

2,083

-65.3

(3,595)

―

5,997

289.4

3,600

―

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

Yen

Yen

Fiscal year ended(550.88)―
March 31, 2023
Fiscal year ended
515.97―
March 31, 2022
Reference: Equity earnings (losses) of affiliates
Fiscal year ended March 31, 2023: ¥ 443 million
Fiscal year ended March 31, 2022: ¥ 435 million(2) Consolidated financial position
Total assets
Millions of yen

Net assets

%

%

%

-8.3

2.2

0.7

8.4

6.6

3.8

Equity ratio

Net assets per share

Millions of yen%

Yen

43,85144.9

6,479.13

46,73247.5

6,810.22(3) Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvestment activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

4,376(6,702)(1,058)10,361

7,262(5,839)(3,391)

13,404

Fiscal year ended
94,098March 31, 2023
Fiscal year ended
93,756
March 31, 2022
Reference: Shareholders’ equity
As of March 31, 2023: ¥42,261 million
As of March 31, 2022: ¥44,504 million

Fiscal year ended
March 31, 2023
Fiscal year ended
March 31, 2022

1

2. Dividends
Dividends per Share
Year2Q
3Q
End

1Q

Fiscal year ended
March 31, 2022
Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024
(Forecast)

Dividends per
Net Assets

Total

Total Dividends
Paid (Annual)(Consolidated)

Yen

Millions of yen%%

120.00 160.00

1,065

31.0

2.4

523

―

1.2

Yen

Yen

Yen

Yen

―

40.00

―

―

80.00

―

0.00

80.00

―

0.00

―

10.00

10.00

Payout Ratio(Consolidated)

32.6

3. Forecast of Consolidated Financial Performance for the Fiscal Year Ending March 31, 2024
(April 1, 2023 to March 31, 2024)(Percentage figures indicate changes from the same period of the previous year)
Profit attributable to Net income
Net sales
Operating income
Ordinary income
owners of parent
per share
Millions ofMillions ofMillions ofMillions of
%
%
%
%
Yen
yen
yen
yen
yen
nd
2 Quarter ending―
73,000
-1.4
200
-75.7
300
-84.4
(400)
(61.32)September 30, 2023
Fiscal year ending
150,000
0.4
1,800
71.4
1,800
-13.6
200 105.6
30.66
March 31, 2024
4. Other(1) Changes in significant subsidiaries during the period(changes in specific subsidiaries resulting in changes in the scope of consolidation): Yes(Note)Excluded:2, TRM LLC, TRM Corporation B.V.
(2) Changes in accounting principles, procedures, presentation methods
1) Changes associated with revision of accounting standards: None
2) Changes other than 1): None
3) Changes accounting estimation procedures: None
4) Changes in presentation methods: None
(3) Number of shares issued and outstanding (common stock)1) Number of shares issued and outstanding at end of year (including treasury stock)
As of March 31, 2023: 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 March 31, 2023: 189,621 shares
As of March 31, 2022: 177,519 shares
3) Average number of shares outstanding during the period
Fiscal year ended March 31, 2023: 6,527,520 sharesFiscal year ended March 31, 2022: 6,978,068 shares

2

(Reference) Summary of Non-consolidated Financial Performance
1. Non-consolidated Financial Performance for Fiscal Year Ended March 31, 2023
(April 1, 2022 to March 31, 2023)(1) Non-consolidated operating performance(Percentage figures indicate year-on-year change)
Net sales
Operating income
Ordinary income
Net income
Fiscal year ended
March 31, 2023
Fiscal year ended
March 31, 2022

Millions of yen%

72,78368,308Millions of yen%

Millions of yen%

Millions of yen%

6.6

1,136 -22.9

6,220

13.2

(1,731)

―

21.4

1,473

―

5,496

87.3

3,901

―

Net income per share
Fiscal year ended
March 31, 2023
Fiscal year ended
March 31, 2022

Diluted net
income per share

Yen

Yen

(265.23)―559.11―(2) Non-consolidated Financial Position
Total assets
Millions of yen

Fiscal year ended
56,790March 31, 2023
Fiscal year ended
58,587
March 31, 2022
Reference: Shareholders’ equity
As of March 31, 2023: ¥28,797 million
As of March 31, 2022: ¥31,854 million

Net assets

Equity ratio

Net assets per share

Millions of yen%

Yen

28,79750.7

4,414.83

31,85454.4

4,874.54

2. Forecast of Non-Consolidated Financial Performance for the Fiscal Year Ending March 31, 2024
(April 1, 2023 to March 31, 2024)(Percentage figures indicate changes from the same period of the previous year)
Net income
Net sales
Operating income
Ordinary income
Net income
per share
Millions ofMillions ofMillions ofMillions of
%
%
%
%
Yen
yen
yen
yen
yen
nd
2 Quarter ending
35,000
-1.4
(700)
1,300
-58.7
(500)
(76.65)――September 30, 2023
Fiscal year ending
74,000
1.7
(200)
4,000
-35.7
400 -123.1
61.32―
March 31, 2024
* 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.

3

Table of Contents
1. Business Results and Qualitative Information for the Fiscal Year Ended March 31, 2023 ······················· 5(1) General overview of financial performance ······································································· 5(2) General overview of Consolidated financial position ···························································· 6
2. Basic Concept Behind the Selection of Accounting Standards······················································· 7
3. Consolidated Financial Statements and main notes ··································································· 8(1) Consolidated balance sheets ························································································ 8(2) Consolidated statements of income and consolidated statement of comprehensive income ················ 10(Consolidated statements of income) ··········································································· 10(Consolidated statement of comprehensive income) ·························································· 12(3) Consolidated statements of changes in net assets································································ 13(4) Consolidated statements of cash flows ··········································································· 15(5) Notes concerning consolidated financial statement ····························································· 17(Going concern assumptions) ······················································································ 17(Consolidated statements of income) ············································································· 17(Additional information) ··························································································· 18(Segment information) ····························································································· 18(Supplementary information) ······················································································ 21(Per share information) ····························································································· 22(Omitted disclosure) ································································································ 22(Significant subsequent events) ··················································································· 22
4. Non-Consolidated Financial Statements and main notes ···························································· 23(1) Non-consolidated balance sheets ·················································································· 23(2) Non-consolidated statements of income ·········································································· 26(3) Non-consolidated statements of changes in net assets ·························································· 28(4) Notes concerning non-consolidated financial statement ························································ 30(Going concern assumptions) ······················································································ 30(Additional information) ··························································································· 30(Significant subsequent events) ··················································································· 30

41. Business Results and Qualitative Information for the Fiscal Year Ended March 31, 2023
(1) General overview of financial performance
General overview
The economic environment in the consolidated fiscal year showed signs of recovery from the COVID-19 disaster. However,conditions remained challenging due to the prolonged invasion of Ukraine and the impact of COVID-19 infection, whichcaused raw material and parts costs, logistics costs, and energy prices to soar.
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 Europe and China. However, operating income declined sharply except Asia.
As a result, net sales during the consolidated fiscal year under review increased by 15,832 million yen from the previous
fiscal year, amounting to 149,413 million yen (up 11.9% year on year), operating income decreased by 3,991 million yen,amounting to 1,050 million yen (down 79.2% year on year), ordinary income decreased by 3,914 million yen, amounting to
2,083 million yen (down 65.3% year on year). Loss attributable to owners of parent of 3,595 million yen was posted, worsening
by 7,196 million yen. This was due to an impairment loss on noncurrent assets of 3,467 million yen in the U.S. and an
extraordinary loss of 401 million yen from the deconsolidation of Russian subsidiaries.
The segment results are as follows.
The book-closing date for the consolidated subsidiaries for the consolidated fiscal year under review is December 31. In
preparing the consolidated financial statements, the financial statements as of, and for one year period ended on this date wereused. With respect to important transactions conducted during the period between this date and the book-closing date forconsolidated accounting, we have made adjustments as necessary for consolidated accounting. The segments relevant to suchadjustments are the United States, Europe, Asia and China.
Domestic subsidiaries have the same settlement date that coincides with the last day of the consolidated fiscal year. The
corresponding segment is Other.
Net SalesJapan
UnitedStatesEuropeAsia
China
Other(including
elimination)

Operating Income (Loss)

Fiscal year
ended March
31, 2022

Fiscal year
ended March
31, 2023

Increase/
Decrease

Percentagechange(on a foreign
currency basis)*

Fiscal year
ended March
31, 2022

Fiscal year
ended March
31, 2023

Increase/
Decrease

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

(Millions of yen)

(Millions of yen)(%)

(Millions of yen)

(Millions of yen)

(Millions of yen)

60,561

65,885

5,324

8.8

1,485

1,184

-300

(%)

-20.2

29,10437,540

8,436

11.8

(1,374)(3,665)-2,291－

4,432
15,32523,889270

5,487
19,26920,998
234

1,055
3,944
-2,891
-36

-1.3
13.1
-15.2
-13.5

(101)
2,309
2,739
(15)

(540)
2,948
1,104
20

-440
639
-1,634
35

－
15.3
-61.7
－

Total
133,581
149,413
15,832
－
5,041
1,050
-3,991－*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 year on year despite the impact of semiconductor shortages. The net
sales of products for construction industrial machines were generally strong through the third quarter. However, the sales
decreased from the same period of the previous year due to inventory adjustments in the fourth quarter. As a result, the net sales
in the Japan segment increased by 5,324 million yen, resulting in 65,885 million yen.
Operating income decreased by 300 million yen from the same period of the previous year to 1,184 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 8,436 million yen from the same period of the previous year, resulting in 37,540 million yen. On a foreign
currency basis, it increased by 11.8%.
The operating income decreased by 2,291 million yen year-on-year, resulting in operating loss of 3,665 million yen due to thesoaring costs of materials and parts and distribution expenses and an increase in labor 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.
5

(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 etc. The net sales in this segment increased by 1,055 million yen from the same period of theprevious year, to 5,487 million yen. On a foreign currency basis, it decreased by 1.3% due to the effect of withdrawal from
Russian business etc.
Operating income decreased by 440 million yen year-on-year, resulting in operating loss of 540 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 twelve months ending March 31,
2023. 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. (YoY impact: net sales -294 million yen; operating income -40 million yen)(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 3,944 million yen from the same period of the previous year, resulting
in 19,269 million yen. On a foreign currency basis, it increased by 13.1%.
Operating income increased by 639 million yen from the same period of the previous year, resulting in 2,948 million yen. On
a foreign currency basis, it increased by 15.3%.
(v) China
The net sales of products for automobile industry and construction industrial machines decreased from the same period of theprevious year, due to a drop in demand caused by the expansion of COVID-19 infection following the lifting of thezero-COVID policy and the shortage of semiconductors. As a result, the net sales in this segment decreased by 2,891 million
yen from the same period of the previous year, to 20,998 million yen. On a foreign currency basis, it decreased by 15.2%.
Operating income was 1,104 million yen. It decreased by 1,634 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 61.7%.
Outlook for the fiscal year ending March 31, 2024
Regarding the outlook for the fiscal year, the consolidated sales in all regions are expected to remain at the same level as in
the previous fiscal year due to concerns about the economic slowdown in the U.S., China, and other countries in the second
half of the year. Our profit will increase in the U.S. due to improved productivity but will decrease in Japan due to higher labor,
electricity, and depreciation expenses. Therefore, the operating income is expected to increase only slightly. The profit
attributable to owners of parent is expected to improve due to the absence of the impairment loss on the U.S. subsidiary and theextraordinary loss associated with the withdrawal from the Russian business recorded in the previous period.
Therefore, we forecasts the following consolidated financial performance for the fiscal year ending March 31, 2024: net
sales of 150,000 million yen (up 0.4% year on year), operating income of 1,800 million yen (up 71.4% year on year), ordinary
income of 1,800 million yen (down 13.6% year on year), and profit attributable to owners of parent of 200 million yen(improvement of 3,795 million yen year on year).
As for the profit distribution for the fiscal year, we plan to pay out a year-end dividend of 10 yen.
(2) General overview of consolidated financial position
1) Assets, liabilities and net assets
Total assets at the end of the consolidated fiscal year under review resulted in 94,098 million yen (up 341 million yen fromthe end of the previous fiscal year) due to the increase of inventories etc.
Liabilities resulted in 50,246 million yen (up 3,222 million yen) due to the increase of long-term loans payable etc.
Net assets resulted in 43,851 million yen (down 2,880 million yen) due to the decrease of retained earnings etc.

62) Cash flows
The increasing and decreasing factors of each cash flow in the consolidated fiscal year under review are as follows.
Net cash provided by operating activities was 4,376 million yen, a decrease of 2,885 million yen year on year due to thedecrease of profit before income taxes and increase of income taxes etc.
Net cash used by investing activities was 6,702 million yen, a decrease of 862 million yen year on year due to the increase ofcapital investment etc.
As a result, free cash flow, the sum of net cash provided by operating activities and net cash used in investing activities,
decreased by 3,748 million yen year-on-year. The result was a cash outflow of 2,325 million yen.
Furthermore, net cash used in financing activities was 1,058 million yen, improved by 2,332 million yen year on year due tothe 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 consolidated fiscal year under review totaled 10,361 million
yen, decrease of 3,042 million yen from the end of the previous fiscal year.
2. Basic Concept Behind the Selection of Accounting Standards
In order to ensure comparability between companies and over time, the T.RAD Group, which consists of T.RAD Co., Ltd.
(the “Company”), prepares the Company’s consolidated financial statements based on the “Ordinance on Terminology,
Forms, and Preparation Methods of Consolidated Financial Statements (except Chapters 7 and 8)” (Ordinance of the Ministryof Finance No. 28 of 1976).
Please note that, in view of domestic and overseas circumstances, the Company intends to respond appropriately to theapplication of international accounting standards.

7

3．Consolidated Financial Statements and main notes(1) Consolidated balance sheets(Millions of yen)
FY2021

FY2022As of March 31, 2022

As of March 31, 2023

AmountAmount(Assets)
Current assets
Cash and deposits

13,264

10,225

Notes receivable-trade

2,004

772

Electronically recorded monetary claims-operating

3,012

2,760

Accounts receivable-trade23,832

25,527

Short-term investment securities

489

489

Merchandise and finished goods

3,805

4,356

Work in process

902

795

Raw materials and supplies

8,152

10,718Others

2,542

2,738

Allowance for doubtful accounts

(172)

(246)

Total current assets

57,835

58,138

Buildings and structures

21,76323,789

Accumulated depreciation(16,048)(17,127)

Building and structures, net

5,715

6,662

Machinery, equipment and vehicles

56,90260,375

Accumulated depreciation(41,824)(46,592)

Machinery, equipment and vehicles, net

15,077

13,783

Land

2,384

2,444

Lease assets

826

2,233

Accumulated depreciation

(462)

(582)

Noncurrent assets
Tangible fixed assets

Lease assets, net

364

1,650

Construction in progress

4,904

2,729

Other tangible fixed assets

31,592

32,717

Accumulated depreciation(29,838)(30,807)

Other tangible fixed assets, net

1,754

1,909

Total tangible fixed assets

30,20029,179Other intangible assets

1,613

2,153

Total intangible assets

1,613

2,153

Investment securities

2,392

2,967

Net defined benefit asset

1,020

895

Deferred tax assets

149

203

Others549

565

Allowance for doubtful accounts

(5)

(5)

Total investments and other assets

4,106

4,626

Total noncurrent assets

35,92135,95993,756

94,098Intangible assets

Investments and other assets

Total assets

8

(Millions of yen)
FY2022

FY2021
As of March 31, 2022

As of March 31, 2023

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

13,994

13,886

Electronically recorded obligations - operating

4,249

4,613

Short-term loans payable

10,39011,045

Lease obligations

495

410

Income taxes payable

948

544

Accrued expenses

3,081

3,528

Provision for bonuses

1,421

1,355

Provision for directors’ bonuses

72

25

Provision for product warranties

272

661

Provision for loss on order received

187

209

Electronically recorded obligations - non-operating

474

715

Others

1,788

961

Total current liabilities

37,377

37,958Long-term loans payable

6,720

8,159

Lease obligations

1,576

2,831

Deferred tax liabilities

867

793

Net defined benefit liability

287

292

Provision for share awards－

29

Asset retirement obligations

92

92

Noncurrent liabilities

Others102

88

Total noncurrent liabilities

9,646

12,28847,02450,246

Capital stock

8,570

8,570

Capital surplus

7,352

7,353

Retained earnings

27,004

22,100Treasury stock

(421)

(452)

Total shareholders’ equity

42,50537,571

Valuation difference on available-for-sale securities－

11

Foreign currency translation adjustment

948

3,700

Remeasurements of defined benefit plans

1,049

977

Total accumulated other comprehensive income

1,998

4,690

Non-controlling interests

2,228

1,589

Total net assets

46,73243,851

Total liabilities and net assets

93,756

94,098

Total liabilities(Net assets)
Shareholders’ equity

Valuation and translation adjustments9(2) Consolidated statements of income and consolidated statement of comprehensive income(Consolidated statements of income)(Millions of yen)
FY2022

FY2021(Apr. 1, 2021–Mar. 31, 2022)(Apr. 1, 2022–Mar. 31, 2023)

AmountAmountNet sales

133,581

149,413

Cost of sales

118,478

137,558

Gross profit

15,103

11,855

Packing and delivery expenses

1,780

1,614

Provision for product warranties

273

709

Selling, general and administrative expenses

Directors' compensations

244

207

Salaries and allowances

2,308

2,302

Provision for bonuses

399

429

Provision for directors’ bonuses

72

25

Provision for directors’ retirement benefits

98

44

－

29

Welfare expenses

1,213

1,457

Depreciation

356

349

Rent expenses

443

479

Transportation and communication expenses

337

396

Research and development expenses

1,127

1,104

Entertainment expenses

19

22

Provision of allowance for doubtful accounts

459Commission Fee

295

344

Amortization of goodwill

13－

Miscellaneous expenses

1,073

1,229

Total selling, general and administrative expenses

10,061

10,805

Operating income (loss)

5,041

1,050

156

165

Retirement benefit expenses

Non-operating income
Interest income25Equity in earnings of affiliates

435

443

Foreign exchange gains

315

538

Dividends income

Others294

262

Total non-operating income

1,204

1,415

Interest expenses

235

363

Others12

18

Total non-operating expenses

248

382

Ordinary income

5,997

2,083

Non-operating expenses

10

(Millions of yen)
FY2022

FY2021(Apr. 1, 2021–Mar. 31, 2022)(Apr. 1, 2022–Mar. 31, 2023)

AmountAmountExtraordinary income
Gain on sales of noncurrent assets

36

15

Gain on sales of golf memberships

16－

Total extraordinary income

52

15

128

140

7

20

#¹ 15

#¹ 3,507－

401

Extraordinary loss
Loss on retirement of noncurrent assets
Loss on sales of noncurrent assets
Impairment loss
Loss on reversal of foreign currency translation adjustment
Total extraordinary loss

151

4,069

Income (loss) before income taxes

5,899(1,970)

Income taxes-current

2,187

2,140

Income taxes-deferred

71

(102)

Total income taxes

2,258

2,038

Profit (loss)

3,640(4,009)

39

(413)

3,600

(3,595)

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

11

(Consolidated statement of comprehensive income)(Millions of yen）
FY2021

FY2022(Apr. 1, 2021–Mar. 31, 2022)(Apr. 1, 2022–Mar. 31, 2023)

AmountAmount3,640

Profit (loss)(4,009)Other comprehensive income
Valuation difference on available-for-sale securities－

11

Foreign currency translation adjustment

2,353

2,741

Remeasurements of defined benefit plans, net of tax

128

(70)

41

161

Total other comprehensive income

2,523

2,844

Comprehensive income

6,163(1,165)Comprehensive income attributable to owners of parent

5,849

(904)

Comprehensive income attributable to non-controlling interests

314

(260)

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

12(3) Consolidated statements of changes in net assets
Fiscal year ended March 31, 2022(April 1, 2021 to March 31, 2022)(Millions of yen)
Shareholders’ Equity
Capital stock
As of April 1, 2021

Capital surplus

8,570

Cumulative effects of changes inaccounting policies
As of April 1, 2021 reflecting changes
in accounting policies

Retained earnings

7,521

Total
shareholders’ equity

Treasury stock

27,466(2,258)41,299

(1)
8,570

7,521

(1)

27,464(2,258)41,298Changes of items during the period
Dividends from surplus

(281)

(281)

Profit attributable toowners of parent

3,600

3,600

Purchase of treasury stock
Disposal of treasury stock

12

Retirement of treasury stock(179)

Change in ownership interestof parent due to transactions with
non-controlling interests
Net changes of items other thanshareholders’ equity
Total changes of items during theperiod(3,779)(2,159)(2,159)

36

49

3,959

－

(1)

As of March 31, 2022

(1)

－

(169)

(460)

1,837

1,207

8,570

7,352

27,004(421)

42,505

Valuation and translation adjustments

As of April 1, 2021
Cumulative effects of changes inaccounting policies
As of April 1, 2021 reflectingchanges in accounting policies
Changes of items during theperiodValuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total valuationand translation
adjustments

Non-controllinginterests

Total net assets－(1,171)

920

(250)

2,169

43,218(1)－(1,171)

920

(250)

2,169

43,216

Dividends from surplus(281)

Profit attributable toowners of parent

3,600

Purchase of treasury stock(2,159)

Disposal of treasury stock

49

Retirement of treasury stock－

Change in ownership interestof parent due to transactions
with non-controlling interests
Net changes of items other thanshareholders’ equity
Total changes of items during theperiodAs of March 31, 2022

(1)
－

2,120

128

2,249

58

2,308

－

2,120

128

2,249

58

3,515

－

948

1,049

1,998

2,228

46,73213

Fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023)(Millions of yen)
Shareholders’ Equity
Capital stock
As of April 1, 2022
Cumulative effects of changes inaccounting policies
As of April 1, 2022 reflecting changes
in accounting policies

Capital surplus

Retained earnings

Total
shareholders’ equity

Treasury stock

8,570

7,352

27,004(421)

42,505

8,570

7,352

27,004(421)

42,505

Changes of items during the period
Dividends from surplus(1,307)(1,307)

Profit(Loss) attributable toowners of parent(3,595)(3,595)Purchase of treasury stock
Disposal of treasury stock

1

(116)

(116)

85

86

Retirement of treasury stock
Change in ownership interestof parent due to transactions with
non-controlling interests
Net changes of items other thanshareholders’ equity
Total changes of items during theperiodAs of March 31, 2023－

1

(4,903)(31)(4,933)

8,570

7,353

22,100(452)

37,571

Valuation and translation adjustments
Valuationdifference on
available-for-salesecurities
As of April 1, 2022
Cumulative effects of changes inaccounting policies
As of April 1, 2022 reflectingchanges in accounting policies
Changes of items during theperiod－Foreigncurrencytranslation
adjustment
948

Remeasurementsof defined benefit
plans

Total valuationand translation
adjustments

Non-controllinginterests

Total net assets

1,049

1,998

2,228

46,732
－

－

948

1,049

1,998

2,228

46,732

Dividends from surplus(1,307)

Profit(Loss) attributable toowners of parent(3,595)Purchase of treasury stock(116)

Disposal of treasury stock86

Retirement of treasury stock－

Change in ownership interestof parent due to transactions
with non-controlling interests
Net changes of items other thanshareholders’ equity
Total changes of items during theperiodAs of March 31, 2023

－
11

2,751

(71)

2,691

(638)

2,052

11

2,751

(71)

2,691

(638)

(2,880)

11

3,700

977

4,690

1,589

43,85114

(4) Consolidated statements of cash flows(Millions of yen)
FY2022

FY2021(Apr. 1, 2021–Mar. 31, 2022)(Apr. 1, 2022–Mar. 31, 2023)

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

5,899(1,970)Depreciation and amortization

5,836

6,349

Impairment loss

15

3,507

Retirement benefit expenses

(1)

(118)

Increase (decrease) in net defined benefit liability

60

123

Increase (decrease) in allowance for doubtful accounts

(22)

59

Increase (decrease) in provision for bonuses

302

(67)

Increase (decrease) in provision for directors' bonuses

72

(46)

Increase (decrease) in provision for product warranties

(330)

370

Loss on retirement of noncurrent assets

128

140

Loss (gain) on sales of tangible fixed assets

(29)

4

Interests and dividends income

(158)

(171)

Interests expenses

235

363

Foreign exchange losses (gains)

(85)

(57)

Equity in (earnings) losses of affiliates

(435)

(443)

Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade

(66)

1,050

(3,322)(2,500)

780

(570)

Loss on reversal of foreign currency translation adjustment－

401

Decrease (increase) in other current assets

147

(152)

Increase (decrease) in other current liabilities

(42)

772

Other, net

(7)

32

Subtotal

8,975

7,077

Interest and dividends income received

252

200

Interest expenses paid

(228)

(368)

Income taxes paid

(1,737)(2,533)

Net cash provided by (used in) operating activities

7,262

4,376

15

(Millions of yen)
FY2022

FY2021(Apr. 1, 2021–Mar. 31, 2022)(Apr. 1, 2022–Mar. 31, 2023)

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

1,314

1,550

Payments into time deposits(1,356)(1,522)

Purchase of tangible fixed assets(5,231)(6,093)

88

98

(581)

(753)

7

－

(100)

－

Proceeds from sales of tangible fixed assets
Purchase of intangible assets
Proceeds from sales of investment securities
Payments for asset retirement obligations
Other, net
Net cash provided by (used in) investing activities

19

18(5,839)(6,702)

Net cash provided by (used in) financing activities
65

228

Proceeds from long-term loans payable

3,820

3,900

Repayment of long-term loans payable(4,138)(3,031)

Purchase of treasury stock(2,159)(116)

Cash dividends paid

(281)

(1,307)

Cash dividends paid to non-controlling shareholders

(211)

(224)

(42)

－

Others

(444)

(506)

Net cash provided by (used in) financing activities(3,391)(1,058)758

522

Net increase (decrease) in cash and cash equivalents(1,210)(2,861)

Cash and cash equivalents at beginning of period

14,614

13,404－(180)

13,404

10,361

Net increase (decrease) in short-term loans payable

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

Effect of exchange rate change on cash and cash equivalents

Decrease in cash and cash equivalents resulting from exclusion of subsidiaries
from consolidation
Cash and cash equivalents at end of period16(5) Notes concerning Consolidated Financial Statements(Going concern assumptions)Not applicable(Consolidated statements of income)#1 Impairment Loss:
Impairment losses were recorded in the following asset groups of the Group:
FY2021 (April 1, 2021–March 31, 2022)
Place
T.RAD Czech s.r.o
Unhost, Czech

Purpose of use

Type

Impairment loss
(Millions of yen)

Machinery, equipment and vehicles
15
Subtotal
15
Total
15
The asset groups are classified on the base of managerial accounting in consideration of company category and business category.
As a result of accounting for the impairment of assets based on the aforementioned grouping, as to manufacture and sales of heatexchangers in the Czech Republic, regarding aforementioned tangible fixed assets were no longer expected to recover theinvestment amount due to the decrease in profitability. Accordingly, their book values were written down to recoverable values,
and the Company posted those losses as an impairment loss under extraordinary loss.
The amount listed as recoverable value by each asset group was calculated in accordance with the asset’s value inusage. T.RAD Czech s.r.o. has no value in use based on future cash flows. Therefore, the recoverable amount isevaluated as zero, and no discount rate is applied.
Manufacture and sales ofheat exchangers

FY2022 (April 1, 2022–March 31, 2023)
Place

Purpose of use

Type

Impairment loss
(Millions of yen)

Machinery, equipment and vehicles
9
The Company,
Head Quarter etc.
Idle assets
Construction in progress
29
Shibuya-ku, Tokyo, Japan
Subtotal
38
Machinery, equipment and vehicles
3,079
T.RAD North America, Inc.
Tools, furniture and fixtures
308
Manufacture and sales of
Hopkinsville, Kentucky,
heat exchangers
Construction
inprogress
79
U.S.A
Subtotal
3,467
Total
3,507
The asset groups are classified on the base of managerial accounting in consideration of company category and business category.
As a result of accounting for the impairment of assets based on the aforementioned grouping, regarding idle assets with noexpected future use, its book value was written down to recoverable values, and the Company posted this loss as an impairment
loss under extraordinary loss. The amount listed as recoverable value by each asset group have been appraised based on residual
value.
As to manufacture and sales of heat exchangers in the United States, regarding aforementioned tangible fixed assets were nolonger expected to recover the investment amount due to the decrease in profitability. Accordingly, their book values were written
down to recoverable values, and the Company posted those losses as an impairment loss under extraordinary loss. The amountlisted as recoverable value by each asset group was calculated in accordance with the asset’s value in usage. This business has novalue in use based on future cash flows. Therefore, the recoverable amount is evaluated as zero, and no discount rate is applied.
In addition, an impairment loss of less than one million yen was recorded for a portion of the Czech subsidiary’s
facilities.

17

(Additional information)(About the accounting estimate associated with the spread of novel coronavirus infections)
The spread of the COVID-19 pandemic is an event that has a widespread impact on the economy and corporate
activities. There is a possibility that the operation adjustments of customers will have a significant impact on the
T.RAD Group. However, in the current consolidated fiscal year (fiscal year ended in March 2023), the impact almost
disappeared. If we assume that this situation will continue in the next consolidated fiscal year (fiscal year ending inMarch 2024), we have made accounting estimates for the current consolidated fiscal year (fiscal year ended in March
2023).
(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 current consolidated cumulative period is 49 million
yen, and the number of shares is 22,100.
(Transfers between retirement benefit plans)
On April 1, 2023, the Company transferred a portion of its defined benefit corporate pension plan to a defined
contribution corporate pension plan. As a result, the Company adopted the Guidance on Accounting for Transfers
between Retirement Benefit Plans (the Accounting Standards Board of Japan’s Guidance No. 1, December 16, 2016)
and the Practical Solution on Accounting for Transfers between Retirement Benefit Plans (the Practical Issues Task
Force’s No. 2, February 7, 2007). The transferred portion to the defined contribution pension plan will be treated as apartial termination of the retirement benefit plan, and there will be no gain or loss arising from this transition.
(Segment information)
1. General information of reportable segments
The reportable segments of the Group are components for which discrete financial information is available andwhose operating results are regularly reviewed at management meetings comprising directors and officers, whereby
decisions are made regarding the allocation of resources to the segments and assessments are made concerning thesegments’ performance.
The Group’s business involves the manufacture and sales of heat exchangers for the automobile and otherindustries. The Company covers the business in Japan. Overseas companies cover the business of each region such as
the United States, Europe (the Czech Republic and Germany), Asia (Thailand, Indonesia and Vietnam) and China.
Each of these overseas corporations is an independent business unit whose operations involve the manufacture of
products that are marketed in each respective area.
Therefore, our Group consists of the Company and these overseas corporations which are based on a
manufacturing and sales structure. As such, “Japan,” “the United States,” “Europe,” “Asia” and “China” are our fivereportable segments.
In each reportable segment, heat exchangers for automobiles, construction, industrial machinery, air conditioners
and others are manufactured and sold.
2. Calculation method for net sales, profit (loss), assets and other items by reportable segment
The accounting method for the Group’s reportable segments is generally the same as described in “Basis for
preparation of consolidated financial statements.”
Net sales for reportable segments are for each production region.
Segment income is based on operating income.
Intersegment income and transfer amount are calculated based on arm's length price.
18

3. Net sales, profit (loss), assets and other items by reportable segments
Fiscal year ended March 31, 2022(from April 1, 2021 to March 31, 2022)(Millions of yen)
Reportable segment
Other
Total
UnitedJapan
Europe
Asia
China
Total
StatesNet Sales:
Sales to outside customers
60,56029,104
4,432
15,32523,888133,311
270
133,581Intersegment sales or
7,747
120
336
206
2,001
10,412
1,915
12,328transfers
Total
68,30829,224
4,769
15,53125,890143,7232,186
145,909
Segment income (loss)
1,484(1,374)
(101)
2,308
2,738
5,056
64
5,120
Segment assets
65,174
19,317
3,132
10,10019,173116,898
928
117,826
Other items
Depreciation
2,844
1,265
105
745
804
5,765
69
5,835
Investment amount in
531
531
531
equity-method affiliate
Increase of tangible fixed
assets and intangible
2,940
1,427
231
512
1,132
6,244
26
6,271
assetsNote: “Other” comprises business operations that are not categorized as reportable segments and includes the businessactivities of domestic subsidiaries, such as the transportation business.

Fiscal year ended March 31, 2023(from April 1, 2022 to March 31, 2023)(Millions of yen)
Reportable segment
Other
Total
UnitesJapan
Europe
Asia
China
Total
StatesNet Sales:
Sales to outside customers
65,88537,5405,487
19,26920,998149,180233
149,413Intersegment sales or
6,897
85
128
425
2,137
9,674
2,007
11,682transfers
Total
72,78337,626
5,615
19,694
23,135
158,855
2,241
161,096
Segment income (loss)
1,184(3,665)
(540)
2,948
1,104
1,030
52
1,082
Segment assets
57,19722,288
3,953
11,25017,541
112,230
918
113,149
Other items
Depreciation
2,776
1,653
109
783
914
6,236
62
6,298
Investment amount in
531
531
531
equity-method affiliate
Increase of tangible fixed
assets and intangible
3,489
559
382
540
631
5,604
33
5,638
assetsNote: “Other” comprises business operations that are not categorized as reportable segments and includes the businessactivities of domestic subsidiaries, such as the transportation business.

19

4. Difference amount between the total amount of reportable segments and the posted amounts in the consolidated
financial statements and the main contents of the difference amount (the adjustment of difference)(Millions of yen)
FY2021

Net sales
Total of reportable segments

FY2022
143,723

158,855

Net sales of the classification “Others”

2,186

2,241

Elimination of trades among segments(12,328)(11,682)

Net sales in the consolidated financial statements

133,581

149,413(Millions of yen)

FY2021

ProfitFY2022

Total of reportable segments

5,056

1,030

Profit of the classification “Others”

64

52

Elimination of trades among segments

(78)

(32)

Operating income in the consolidated financial statements

5,041

1,050
(Millions of yen)

FY2021

AssetsTotal of reportable segments

FY2022
116,898

112,230928

918(24,069)(19,050)

93,756

94,098Assets of the classification “Others”
Elimination of trades among segments
Total assets in the consolidated financial statements(Millions of yen)

Other items

Total of reportablesegments

Other

Adjustments(Note)

Posted amounts in the
consolidated financial
statements

FY2021

FY2022

FY2021

FY2022

FY2021

FY2022

FY2021

FY2022

Depreciation

5,765

6,236

69

62

0

51

5,836

6,349

Investment amount toequity-method affiliate

531

531

－

－

1,818

2,393

2,349

2,924

Increase of tangible fixed
6,244
5,604
26
33
6,173
6,361
(98)
723
assets and intangible assets
Note: Adjustments are as follows.
1. The adjustment of depreciation cost derives from the elimination of unrealized losses and gains related to non-current assets.
2. The adjustment of investment amount to the entities accounted for using equity method derives from investment profit on equity
method.
3. The adjustment of increased amounts of tangible fixed assets and intangible assets are as follows.
Elimination of unrealized losses and gains related to non-current assets: (262) million yen

20

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

FY2021

FY2022(April 1, 2021 to March 31, 2022) (April 1, 2022 to March 31, 2023)

Amount%Amount%Increase/Decrease
Amount%For Automobile

97,452

73.0

114,41776.5

16,96417.4

For construction &industrial machine

31,81423.8

30,283

20.3-1,531-4.8

For Air conditioner

2,128

1.6

2,090

1.4

-37

-1.8

Other

2,186

1.6

2,622

1.8

436

19.9

133,581100.0
149,413
Total
Notes: Amounts less than one million yen have been truncated.

100.0

15,832

11.9

21

(Per share information)
FY2021
FY2022(April 1, 2021–March 31, 2022)(April 1, 2022–March 31, 2023)
Net assets per share:¥6,810.22¥6,479.13
Net income(loss) per share:¥515.97¥(550.88)(Note) 1. Diluted net income per share is not listed for the consolidated fiscal year under review, as there are no potential sharesthat have dilutive effects on per-share net income.
2. The number of shares outstanding at the end of the consolidated fiscal year includes 22,100 shares of theCompany’s stock held by Custody Bank of Japan, Ltd. (Trust Account E) as trust assets of the Employee
Stock Ownership Plan (J-ESOP). These shares are excluded from calculating the increase or decrease in thenumber of shares.
3. Basis for calculation of net income(loss) per share as follows.
FY2021(April 1, 2021–March 31, 2022)
Net income(loss) per share
Profit(Loss) attributable toowners of parent(Millions of yen)Amount that is not attributable toshares of common stock(Millions of yen)
Profit(Loss) attributable to owners ofparent related to shares of common
stock (Millions of yen)
Average number of shares ofcommon stock during the period(Thousands)

FY2022(April 1, 2022–March 31, 2023)

3,600(3,595)

—

—

3,600

(3,595)

6,978

6,527

(Omitted disclosure)
Disclosure of the statement of comprehensive income, lease transactions, information on related parties, financial
products, securities, derivative transactions, retirement benefits, stock options, tax-effect accounting, asset retirement
obligations, and notes related to the rental property are omitted because disclosure of such information is deemed to be
insignificant.
(Significant subsequent events)
Not applicable224. Non-Consolidated Financial Statements and main notes(1) Non-consolidated balance sheets(Millions of yen)
FY2022

FY2021
As of March 31, 2022

As of March 31, 2023

AmountAmount(Assets)
Current assets
Cash and deposits

3,860

1,779

Notes receivable-trade

308

37

Electronically recorded monetary claims-operating

3,012

2,760

Accounts receivable-trade

15,482

16,857

Short-term investment securities

489

489

Merchandise and finished goods

1,561

1,570

Work in process

937

1,003

Raw materials and supplies

671

1,521

Prepaid expenses

129

127

Accounts receivable-other

2,060

2,438

Other current assets

6

8

Total current assets

28,52028,594

Buildings

12,792

13,995

Accumulated depreciation(10,332)(10,655)

2,460

3,339

Noncurrent assets
Tangible Fixed Assets

Buildings, net
Structures

1,566

1,654

Accumulated depreciation(1,331)(1,371)235

283

Structures, net
Machinery and equipment

26,41027,304

Accumulated depreciation(20,625)(21,386)

5,785

5,918

Machinery and equipment, net
Vehicles110

116

Accumulated depreciation

(100)

(106)

9

10

Vehicles, net
Tools, furniture and fixtures

25,49425,806

Accumulated depreciation(24,813)(24,833)

Tools, furniture and fixtures, net

681

973

Land

1,771

1,771

Lease assets

25

6

Accumulated depreciation

(19)

(2)

6

4

2,048

1,497

Lease assets, net
Construction in progress
Other, net
Total Tangible Fixed Assets

0012,997

13,798Intangible assets
Software262

325

Other intangible assets

878

1,377

Total intangible assets

1,140

1,703

23

(Millions of yen)
FY2022

FY2021
As of March 31, 2022

As of March 31, 2023

AmountAmountInvestments and other assets
42

42

Stocks of subsidiaries and affiliates

8,184

4,717

Investments in capital of subsidiaries and affiliates

7,873

6,738

9

6

Investment securities

Long-term prepaid expenses
Insurance funds

49

49

Deferred tax assets

916

950

Others139

195

Allowance for doubtful accounts

(5)

(5)

Allowance for investment loss

(1,280)－Total investments and other assets

15,928

12,693

Total noncurrent assets

30,06628,196

Total assets

58,58756,790Electronically recorded obligations – operating

4,249

4,613

Accounts payable-trade

7,039

7,567

Short-term loans payable

2,882

2,640

Lease obligations

228

1

Accounts payable-other

824

414

Income taxes payable

516

154

Accrued consumption taxes

58－

Accrued expenses

1,522

1,636

Advances received

104

21

Deposits received

53

62

Provision for bonuses

1,367

1,292

Provision for directors’ bonuses

72

25

Provision for product warranties

32

45

Electronically recorded obligations - non-operating

474

715

4

9

19,431

19,200

6,690

8,150

4

3

Provision for retirement benefits

507

515

Provision for share awards－

28

Asset retirement obligations

63

63

Others35

32(Liabilities)
Current liabilities

OthersTotal current liabilities
Noncurrent liabilities
Long-term loans payable
Lease obligations

Total noncurrent liabilities
Total liabilities

24

7,301

8,793

26,73327,993

(Millions of yen)
FY2022

FY2021
As of March 31, 2022

As of March 31, 2023

AmountAmount(Net assets）
Shareholders’ equity
8,570

8,570

Legal capital surplus

7,331

7,331

Other capital surplus－

1

Total capital surplus

7,331

7,332

1,097

1,097

Capital stock
Capital surplus

Retained earnings
Legal retained earnings
Other retained earnings
Reserve for dividends

500

500

Reserve for special account for advanced depreciation of noncurrent assets

110

110

General reserve

8,130

8,130

6,535

3,496

Total retained earnings

16,374

13,334

Treasury stock

(421)

(452)

Total shareholders’ equity

31,85428,785

Valuation difference on available-for-sale securities－

11

Total valuation and translation adjustments－

11

Total net assets

31,854

28,797

Total liabilities and net assets

58,58756,790Retained earnings brought forward

Valuation and translation adjustments25

(2) Non-consolidated statements of income(Millions of yen)
FY2022

FY2021

Net sales(Apr. 1, 2021–Mar. 31, 2022)(Apr. 1, 2022–Mar. 31, 2023)

AmountAmount68,30872,783

Cost of sales
Beginning finished goods

1,362

1,435

Cost of products manufactured

54,02359,202

Purchase of finished goods

2,046

1,394

Transfer from other account

3,636

4,040

Total

61,06866,072Finished goods transfer to other account

167

189

Ending finished goods

1,435

1,440

Cost of finished goods sold59,46564,443Gross profit

8,842

8,339

Selling, general and administrative expenses
Packing and delivery expenses

2,692

2,640

Advertising expenses

36

24

Provision for product warranties

32

45

Directors' compensations

220

179

Salaries and allowances

1,086

1,051

Provision for bonuses

345

310

Provision for directors’ bonuses

72

25

Provision for retirement benefits

73

68

Welfare expenses

433

439

Depreciation

176

183

Repair expenses

125

122

Taxes and dues

98

101

Rent expenses

336

340

Transportation and communication expenses

204

249

Provision for share awards

－

28

1,035

1,008

Insurance expenses

19

10

Stationery expenses

8133Entertainment expenses

5

8

196

216

Research and development expenses

Commission Fee
Miscellaneous expenses

97

113

Total selling, general and administrative expense

7,369

7,203

Operating income (loss)

1,473

1,136

Interest income

1－Interest on securities

1

1

Dividends income

3,616

4,641

Foreign exchange gains

283

324

Others160

166

Total non-operating income

4,064

5,133

Non-operating income26

(Millions of yen)
FY2022

FY2021(Apr. 1, 2021–Mar. 31, 2022)(Apr. 1, 2022–Mar. 31, 2023)

AmountAmountNon-operating expenses
39

Interest expenses

45

Others2

4

Total non-operating expenses

41

49

5,496

6,220

Ordinary income
Extraordinary income
Gain on sales of noncurrent assets

00Gain on sales of golf memberships

16－

Total extraordinary income

16

0

5

2

114

119

Impairment loss－

38

Provision of allowance for investment loss

103－

Loss on valuation of shares of subsidiaries and associates

590

6,362

Extraordinary Loss
Loss on sales of noncurrent assets
Loss on retirement of noncurrent assets

Loss on valuation of investments in capital of subsidiaries and affiliates－

692

Total extraordinary loss

813

7,215

Income before income taxes

4,699

(994)

Income taxes-current

817

770

Income taxes-deferred

(20)

(33)

Total income taxes

797

737

Net income(loss)

3,901(1,731)27

(3) Non-consolidated statements of changes in net assets
Fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022)(Millions of yen)
Shareholders’ Equity
Capital Surplus

Capital
stock

Legal
capitalsurplus

OthercapitalsurplusTotal
capitalsurplusLegalretainedearnings

8,570

7,331

167

7,498

1,097

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

6,709

16,533

16

(16)

－

(2)

2

－

Dividends from surplus

(281)

(281)

Net income

3,901

3,901

(3,779)(3,779)As of April 1, 2021

Reservefordividends

500

Changes of items during
the period
Provision of reserve foradvanced depreciation of
non-current assets
Reversal of reserve foradvanced depreciation of
non-current assets

96

8,130

Purchase of treasury stock
Disposal of treasury stock

12

12Retirement of treasury stock

(179)

(179)

Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
As of March 31, 2022

－

－

(167)

(167)

－

－

14

－

(173)

(159)

8,570

7,331

－

7,331

1,097

500

110

8,130

6,535

16,374

Shareholders’ Equity

As of April 1, 2021

Valuation and translation adjustments

Treasury
stock

Total
Shareholders’equityValuation difference on
available-for-sale securities(2,258)30,344－

Changes of items during
the period
Provision of reserve foradvanced depreciation of
non-current assets
Reversal of reserve foradvanced depreciation of
non-current assets

Total valuation andtranslation adjustments－

Total net assets
30,344－－－－

Dividends from surplus

(281)

(281)

Net income

3,901

3,901

(2,159)(2,159)(2,159)

Disposal of treasury stock

36

49

49

Retirement of treasury stock

3,959

－

－

Purchase of treasury stock

Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
As of March 31, 2022

－

－

－

1,837

1,510

－

－

1,510

(421)

31,854－－31,85428

Fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023)(Millions of yen)
Shareholders’ Equity
Capital Surplus

As of April 1, 2022

Capital
stock

Legal
capitalsurplus

OthercapitalsurplusTotal
capitalsurplusLegalretainedearnings

8,570

7,331

－

7,331

1,097

Reservefordividends

Retained Earnings
Other retained earnings
Reserve foradvanced
Generaldepreciation ofreserve
non-current
assets

500

110

8,130

Retainedearnings
brought
forwardTotal
retainedearnings

6,535

16,374

Changes of items during
the period
Provision of reserve foradvanced depreciation of
non-current assets
Reversal of reserve foradvanced depreciation of
non-current assets－－

Dividends from surplus(1,307)(1,307)

Net income(loss)(1,731)(1,731)

Purchase of treasury stock
Disposal of treasury stock

1

1

Retirement of treasury stock
Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
As of March 31, 2023

－

－

1

1

－

－

－

－

(3,039)(3,039)

8,570

7,331

1

7,332

1,097

500

110

8,130

3,496

13,334

Shareholders’ Equity

As of April 1, 2022

Valuation and translation adjustments

Treasury
stock

Total
Shareholders’equityValuation difference on
available-for-sale securities(421)

31,854－

Changes of items during
the period
Provision of reserve foradvanced depreciation of
non-current assets
Reversal of reserve foradvanced depreciation of
non-current assets

Total valuation andtranslation adjustments－

Total net assets
31,854－－－－

Dividends from surplus(1,307)(1,307)

Net income(loss)(1,731)(1,731)

Purchase of treasury stock

(116)

(116)

(116)

Disposal of treasury stock

85

86

86

－

－

Retirement of treasury stock
Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
As of March 31, 2023

11

11

11

(31)

(3,069)11

11(3,057)(452)

28,78511

11

28,79729

(4) Notes concerning non-consolidated financial statement(Going concern assumptions)Not applicable(Additional information)(About the accounting estimate associated with the spread of novel coronavirus infections)
The spread of the COVID-19 pandemic is an event that has a widespread impact on the economy and corporate
activities. There is a possibility that the operation adjustments of customers will have a significant impact on the
T.RAD Group. However, in the current consolidated fiscal year (fiscal year ended in March 2023), the impact almost
disappeared. If we assume that this situation will continue in the next consolidated fiscal year (fiscal year ending inMarch 2024), we have made accounting estimates for the current consolidated fiscal year (fiscal year ended in March
2023).
(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 current consolidated fiscal year is 49 million yen, andthe number of shares is 22,100.
(Transfers between retirement benefit plans)
On April 1, 2023, the Company transferred a portion of its defined benefit corporate pension plan to a defined
contribution corporate pension plan. As a result, the Company adopted the Guidance on Accounting for Transfers
between Retirement Benefit Plans (the Accounting Standards Board of Japan’s Guidance No. 1, December 16, 2016)
and the Practical Solution on Accounting for Transfers between Retirement Benefit Plans (the Practical Issues Task
Force’s No. 2, February 7, 2007). The transferred portion to the defined contribution pension plan will be treated as apartial termination of the retirement benefit plan, and there will be no gain or loss arising from this transition.
(Significant subsequent events)
Not applicable30