Consolidated Financial Results for the 2nd Quarter of Fiscal Year Ending March 31, 2020
(J-GAAP)
November 5, 2019
Company name: T.RAD Co., Ltd.
Listing: Tokyo Stock Exchange, First Section
Code No.:
7236
URL: http://www.trad.co.jp
Representative: Tomio Miyazaki, President & COO
Norio Kanai, Managing Executive Officer,
Contact:
Tel:+81-3-3373-1101
Finance & Accounting Dept.
Scheduled date of filing of 2nd quarter securities report:
November 6, 2019
Scheduled date of start of dividend payments:
November 29, 2019
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 2nd Quarter of Fiscal Year Ending March 31, 2020
(April 1, 2019 to September 30, 2019)(1) Consolidated operating performance(Percentage figures indicate year-on-year change)
Net sales
Millions of yen

Operating income% Millions of yen

Ordinary income% Millions of yen

Six months ended
66,100-2.2
1,666 -45.8
1,633
September30, 2019
Six months ended
67,580
14.7
3,073
14.5
3,298
September30, 2018
Note: Comprehensive income
Six months ended September 30, 2019: ¥1,046 million 35.5%
Six months ended September 30, 2018: ¥772 million -43.6%
Net income per share
Diluted net income per share
Six months ended
September30, 2019
Six months ended
September30, 2018

Yen

Yen

224.46―193.57―(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Profit attributable toowners of parent% Millions of yen
%

-50.5

1,701

10.5

7.8

1,540

5.0

Equity ratio

Net assets per share

Millions of yen%

Yen

45,38948.0

6,004.05

46,17047.4

5,537.07

Six months ended
90,070
September30, 2019
Fiscal year ended
92,929March 31, 2019
Reference: Shareholders’ equity
As of September 30, 2019: ¥43,225 million
As of March 31, 2019 : ¥44,072 million

2. Dividends
1Q

2Q
Yen

Dividends per Share
3Q
Yen
Yen

Fiscal year ended
40.00
―
―
March 31, 2019
Fiscal year ending
40.00―
March 31, 2020
Fiscal year ending
March 31, 2020―
(Forecast)
Note: Revisions to the forecast of dividends since the latest official announcement: No

1

Year-end
Yen

Total
Yen

50.00

90.00

50.00

90.00

3. Forecast of Consolidated Financial Performance for the Fiscal Year Ending March 31, 2020
(April 1, 2019 to March 31, 2020)(Percentage figures indicate changes from the same period of the previous year)

Net sales
Millions ofyen%Operating income

Ordinary income

Millions ofyenMillions of
yen

%

%

Profit attributable toowners of parent
Millions of
yen

%

Net
incomeper share
Yen

Fiscal year ending
130,500-4.1
2,200 -56.8
2,300
-58.7
900
-48.1
125.01March 31, 2020
Note: Revisions to the forecast of consolidated financial performance since the latest official announcement: Yes
For details, please refer to“Notice of Revisions to the Forecasts of Financial Performance for the Year Ending March 31, 2020”
released on November 5, 2019.

4. Other(1) Changes in significant subsidiaries during the current quarter consolidated accumulative period(changes in specific subsidiaries resulting in changes in the scope of consolidation): None
(2) Adoption of specific accounting policies for quarterly consolidated financial statements: None
(3) Changes in accounting principles, estimation procedures or presentation methods
1) Changes associated with revision of accounting standards: Yes
2) Changes other than 1): None
3) Changes accounting estimation procedures: None
4) Changes in presentation methods: None
For details, please refer to P.13 “2. Quarterly Consolidated Financial Statements and main notes(4) Notes to quarterly consolidated financial statements(Changes of accounting policy)”.
(4) Number of shares issued and outstanding (common stock)1) Number of shares issued and outstanding at end of period (including treasury stock)
As of September 30, 2019: 8,344,405 shares
As of March 31, 2019 : 8,344,405 shares
2) Number of shares of treasury stock at end of period
As of September 30, 2019: 1,144,944 shares
As of March 31, 2019 : 384,960 shares
3) Average number of shares outstanding during the period
Six months ended September 30, 2019: 7,581,576 shares
Six months ended September 30, 2018: 7,959,812 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 basedon information currently available and certain assumptions judged to be reasonable. Actual performance
may differ significantly from these projections due to various factors.
(Changes in presentation method of date)
We changed presentation method of date to Western calendar style from Japanese calendar style since“Consolidated Financial Results for the 1st Quarter of Fiscal Year Ending March 31, 2020”2

Table of Contents
1. Qualitative Information for the Second Quarter of Fiscal Year Ending March 31, 2020 ·························· 4(1) Consolidated financial performance ················································································ 4(2) Consolidated financial position ····················································································· 5(3) Future projections including forecasts of consolidated financial performance ········································· 5
2. Quarterly Consolidated Financial Statements and main notes ························································ 6(1) Quarterly consolidated balance sheets ·············································································· 6(2) Quarterly consolidated statements of income andquarterly consolidated statement of comprehensive income ········································· 8(Quarterly consolidated statements of income) ·································································· 8(Quarterly consolidated statement of comprehensive income) ··············································· 10(3) Quarterly consolidated statements of cash flows ································································ 11(4) Notes to quarterly consolidated financial statements ··························································· 13(Going concern assumptions) ······················································································ 13(Notes in the event of significant changes in shareholders’ equity) ··········································· 13(Changes of accounting policy) ··················································································· 13(Segment information) ····························································································· 14
3. Supplementary information
Sales states (consolidated) ························································································· 16

31. Qualitative Information for the Second Quarter of Fiscal Year Ending March 31, 2020
(1) Consolidated financial performance
The economic environment during the current second quarter consolidated accumulative period, remained strong aided
by the favorable transition of domestic demand although decrease of exports behind the gradual slowdown in global
economy. However, there are risks which exert downward pressure on the economy due to the slowdown in Chinese andIndian economy, U.S-China trade conflict and the withdrawal of UK from the EU etc.
Under the circumstances, the net sales of the T.RAD Group (on a foreign currency basis) decreased from the same
period of the previous year except United States and China etc. Operating income decreased in domestic and overseas. The
profit attributable to owner of parent increased from the same period of the previous year due to the gain on sales ofinvestment securities etc.
As a result, net sales during the consolidated cumulative second quarter decreased by 1,480 million yen from theprevious fiscal year, amounting to 66,100 million yen (down 2.2% year on year), operating income decreased by 1,407
million yen, amounting to 1,666 million yen (down 45.8% year on year), ordinary income decreased by 1,664 million yen,amounting to 1,633 million yen (down 50.5% year on year) and profit attributable to owners of parent increased by 160
million yen, amounting to 1,701 million yen (up 10.5% year on year).
The segment results are as follows.
The book-closing date for the consolidated subsidiaries for the first six months of the fiscal year under review is June 30.
In preparing the consolidated financial statements, the financial statements as of, and for the six-month period ended on
this date were used. With respect to material transactions conducted during the period between this date and thebook-closing date for consolidated accounting, we have made adjustments as necessary for consolidated accounting. The
segments relevant to such adjustments include the United States, Europe, Asia and China.
Three of domestic subsidiaries have the same settlement date that coincides with the last day of the consolidated fiscal
year. The segment impacted by such adjustments is Other.
Net Sales
Operating Income (Loss)
Six months
Six months
ended
ended
September 30, September 30,
2018
2019

Japan
United States

Europe
Asia
China
Other
(including
eliminations)

Increase/
Decrease

Percentage change(on a foreign
currency basis)*Six months
ended
September
30, 2018

Six months
ended
September 30,
2019

Increase/
Decrease

Percentage change(on a foreign
currency basis)*

(%)

(%)

(Millions of yen)

(Millions of yen)

(Millions of yen)

(Millions of yen)

(Millions of yen)

(Millions of yen)

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

29,147
16,568
1,308
8,626
9,929

-590
686
-959
-63
-582

-2.0
7.0
-40.8
-3.3
0.2

365
247
(478)
1,167
1,469

(289)
(150)
(566)
1,037
1,289

-654
-398
-88
-129
-180

-179.4-162.4
-21.5
-14.0
-6.8

489

519

29

6.0

302

346

43

14.4

Total
67,58066,100-1,480
-1.0
3,073
1,666
-1,407-45.1*The percentage changes (on a foreign currency basis) in the chart are the percentage changes after correcting for differences
arising from fluctuations in the foreign exchange rates applicable to overseas net sales.
(i) Japan
Net sales of products for automobile industry increased from the same period of the previous year thanks to the favorable
transition of the orders received for our products. The net sales of products for construction and industrial machinesdecreased from the same period of the previous year due to the decrease of demand for China and Mining market. As aresult, the net sales in the Japan segment decreased by 590 million yen, resulting in 29,147 million yen.
Operating loss of 289 million yen was posted, worsening by 654 million yen from the same period of the previous year,
due to increased personnel costs and operational costs etc.
(ii) United States
The net sales of products for the automobile industry increased due to the commencement of mass production of models forwhich orders were newly received. The net sales of products for construction and industrial machines increased from thesame period of the previous year by increase of major customer demands for agricultural industrial machines.
As a result, the net sales in the United States segment increased by 686 million yen from the same period of the previous
year, resulting in 16,568 million yen. On a foreign currency basis, it increased by 7.0%.

4

Operating loss of 150 million yen was posted, worsening by 398 million yen from the same period of the previous year,
due to increase of costs influenced by increase in custom duties and increase of scrap costs etc. On a foreign currency basis,
it decreased by 162.4%.
(iii) Europe
The net sales of products for the automobile industry increased due to the commencement of mass production of models forwhich orders were newly received in Czech Republic. The net sales of products for air conditioners largely decreased fromthe same period of the previous year due to the ending of transaction with major customers. As a result, the net sales in theEurope segment decreased by 959 million yen from the same period of the previous year, resulting in 1,308 million yen. On
a foreign currency basis, it decreased by 40.8%.
Operating loss of 566 million yen was posted, worsening by 88 million yen from the same period of the previous year,
due to the end of transaction with major customers for sales of products for air conditioners etc. On a foreign currency basis,
it decreased by 21.5%.
(iv) Asia
The net sales of products for the automobile industry decreased from the same period of the previous year due to thedecrease of orders received in Thailand despite favorable sales of orders received models in Indonesia. As a result, the net
sales in the Asia segment decreased by 63 million yen from the same period of the previous year, resulting in 8,626 million
yen. On a foreign currency basis, it decreased by 3.3%.
Operating income decreased by 129 million yen from the same period of the previous year, resulting in 1,037 million
yen. On a foreign currency basis, it decreased by 14.0%.
(v) China
The net sales of products for the automobile industry slightly increased from the same period of the previous year due to thedecrease of sales of local automobile manufacturer. Net sales of products for construction and industrial machinesdecreased from the same period of the previous year due to the decrease in orders from major customers. As a result, the net
sale in the China segment decreased by 582 million yen from the same period of the previous year, resulting in 9,929
million yen. On a foreign currency basis, it increased by 0.2% due partly to foreign exchange factors.
The operating income decreased by 180 million yen from the same period of the previous year, resulting in 1,289
million yen. On a foreign currency basis, it decreased by 6.8%.

(2) Consolidated financial position
1) Assets, liabilities and net assets
Total assets at the end of current second quarter of the fiscal year under review resulted in 90,070 million yen (down2,859 million yen from the end of the previous fiscal year) due to the decrease of net sales etc.
Assets resulted in 90,070 million yen (down 2,859 million yen) due to the decrease of accounts receivable -trade etc.
Liabilities resulted in 44,680 million yen (down 2,079 million yen) due to the decrease of accounts payable-tradeinfluenced by bank holiday at the end of the previous fiscal year etc.
Net assets resulted in 45,389 million yen (down 780 million yen) due to the purchase of treasury stock etc. despite
increases of retained earnings etc.
2) Cash flows
Cash and cash equivalents at the end of the current second quarter of the fiscal year under review totaled 14,907 million yen,increase of 3,960 million yen from the end of the previous fiscal year.
The factors for increase or decrease of each cash flow in the current second quarter consolidated accumulative period
are as follows.
Net cash provided by operating activities was 240 million yen, a decrease of 3,577 million yen year on year due to thedecrease of operating income etc. Net cash provided by investing activities was 1,212 million yen, an increase of 5,171
million yen year on year due to the sales of investment securities etc. Net cash used in financing activities was 220 million
yen, an increase of 364 million yen year on year due to the increase of loans payable etc.
(3) Future projections including forecasts of consolidated financial performance
We revised the forecast of consolidated financial performance released on May 16, 2019. For details, please refer to“Notice of Revisions to the Forecasts of Financial Performance for the Year Ending March 31, 2020” that we announced
today (November 5, 2019).

5

2. Quarterly Consolidated Financial Statements and main notes(1) Quarterly consolidated balance sheets(Millions of yen)
FY2019_2Q

FY2018
As of March 31, 2019

As of September 30,
2019

AmountAmount(Assets)
Current assets
Cash and deposits

13,894

14,881

Notes and accounts receivable-trade

24,742

23,705

Electronically recorded monetary claims-operating

2,589

3,061

Short-term investment securities

399

399

Merchandise and finished goods

2,714

3,131

Work in process

734

933

Raw materials and supplies

5,370

5,652

Others

2,792

2,486

Allowance for doubtful accounts

(85)

(88)

53,152

54,164

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

6,389

6,453

Machinery, equipment and vehicles, net

15,23915,442

Land

2,335

2,359

Lease assets, net

102

502

Construction in progress

3,457

3,642

Other tangible fixed assets, net

2,117

2,201

Total tangible fixed assets

29,64130,602

Goodwill

228

167

Others

1,255

1,389

Total intangible assets

1,484

1,557

Investment securities

7,668

2,813

Net defined benefit asset

233

216

Deferred tax assets

63

72

Others704

656

Intangible assets

Investments and other assets

Allowance for doubtful accounts

(19)

(13)

Total investments and other assets

8,650

3,745

39,77635,90592,92990,070Total noncurrent assets
Total assets

6

(Millions of yen)
FY2019_2Q

FY2018
As of March 31, 2019

As of September 30,
2019

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

14,28013,213

Electronically recorded obligations – operating

5,340

3,842

Short-term loans payable

8,061

7,912

Lease obligations

414

480

Income taxes payable

658

787

Accrued expenses

2,797

2,813

Provision for bonuses

1,390

1,435

Provision for directors’ bonuses

84

34

Provision for product warranties

235

209

Provision for shareholders benefit program

48

21

Electronically recorded obligations - non-operating

729

550

Asset retirement obligations

116－

Others

1,895

1,245

Total current liabilities

36,05332,547

8,368

10,175

Lease obligations

777

980

Deferred tax liabilities

1,324

707

Provision for directors' retirement benefits

5

6

Net defined benefit liability

95

130

Asset retirement obligations

90

90

Others43

42

10,705

12,132

46,75944,680Capital stock

8,545

8,545

Capital surplus

7,551

7,526

Retained earnings

28,31529,619Treasury stock(901)(2,257)

Total shareholders’ equity

43,51243,435

Valuation difference on available-for-sale securities

456

86

Foreign currency translation adjustment

(381)

(768)

Remeasurements of defined benefit plans

485

472

Total accumulated other comprehensive income

559

(209)

Non-controlling interests

2,098

2,164

Total net assets

46,17045,389Total liabilities and net assets

92,92990,070Noncurrent liabilities
Long-term loans payable

Total noncurrent liabilities
Total liabilities(Net assets)
Shareholders’ equity

Accumulated other comprehensive income7(2) Quarterly consolidated statements of income and quarterly consolidated statement of comprehensive income(Quarterly consolidated statements of income)(Millions of yen)Six months ended
September 30, 2019

Six months ended
September 30, 2018
(Apr. 1, 2018–September 30, 2018)(Apr. 1, 2019–September 30, 2019)

AmountAmountNet sales

67,58066,100

Cost of sales

59,13659,142Gross profit

8,444

6,958

Packing and delivery expenses

867

765

Salaries and allowances

940

1,069

Provision for bonuses

322

310

Provision for directors’ bonuses

46

34

Selling, general and administrative expenses

Retirement benefit expenses

27

42

Welfare expenses

522

686

Provision for product warranties

78

108

Research and development expenses

694

589

Others

1,870

1,684

Total selling, general and administrative expenses

5,370

5,292

Operating income (loss)

3,073

1,666

Interest income

63

62

Dividends income

107

93

Equity in earnings of affiliates

114

38

Others104

55

Total non-operating income

390

250

Interest expenses

131

147

Foreign exchange losses

22

120

Non-operating income

Non-operating expenses

Others12

14

Total non-operating expenses

165

282

Ordinary income (loss)

3,298

1,633

8

(Millions of yen)Six months ended
September 30, 2019

Six months ended
September 30, 2018
(Apr. 1, 2018–September 30, 2018)(Apr. 1, 2019–September 30, 2019)

AmountAmountExtraordinary income
Gain on sales of noncurrent assets

22

36

Gain on sales of investment securities

－

1,350

Total extraordinary income

22

1,387

Extraordinary loss
Loss on sales of noncurrent assets

38

2

Loss on retirement of noncurrent assets

33

52

Impairment loss

192－

Loss on sales of investment securities－

382

Provision of allowance for doubtful accounts of golf club membership

11

0Surcharges

274

11

Total extraordinary loss

549

449

Income (loss) before income taxes

2,770

2,571

Income taxes-current

859

1,162

Income taxes-deferred

222

(457)

Total income taxes

1,081

704

Profit (loss)

1,688

1,867

Profit (loss) attributable to non-controlling interests

147

165

Profit (loss) attributable to owners of parent

1,540

1,701

9

(Quarterly consolidated statement of comprehensive income)(Millions of yen）
Six months ended
September 30, 2019

Six months ended
September 30, 2018

Profit (loss)(Apr. 1, 2018–September 30, 2018)(Apr. 1, 2019–September 30, 2019)

AmountAmount
1,688

1,867

Valuation difference on available-for-sale securities

147

(369)

Foreign currency translation adjustment

(946)

(426)

Remeasurements of defined benefit plans, net of tax

(35)

(13)

(81)

(11)

Total other comprehensive income

(916)

(820)

Comprehensive income

772

1,046

Comprehensive income attributable to owners of the parent

687

932

Comprehensive income attributable to non-controlling interests

84

113

Other comprehensive income

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

10(3) Quarterly consolidated statements of cash flows(Millions of yen)Six months ended
September 30, 2019

Six months ended
September 30, 2018
(Apr. 1, 2018–September 30, 2018)(Apr. 1, 2019–September 30, 2019)

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

2,770

2,571

Depreciation and amortization

2,906

2,917

Retirement benefit expenses

(51)

(18)

Increase(decrease) in net defined benefit liability

27

51

Increase (decrease) in provision for directors' retirement benefits

11Increase (decrease) in allowance for doubtful accounts

15

(1)

Increase (decrease) in provision for bonuses

30

44

Increase (decrease) in provision for directors' bonuses

(49)

(49)

Increase (decrease) in provision for product warranties

52

(20)

Loss on retirement of noncurrent assets

33

52

Loss(gain) on sales of tangible fixed assets

16

(34)

Loss (gain) on sales of investment securities

－

(968)

Surcharges

274

11

Interest and dividends income

(171)

(156)

Interest expenses

131

147

Equity in (earnings) losses of affiliates

(114)

(38)

Impairment loss

192－

Decrease(increase) in notes and accounts receivable-trade

(935)

314

Decrease(increase) in inventories(492)(1,025)

Increase(decrease) in notes and accounts payable-trade

1,144(2,376)

Decrease(increase) in other current assets

(136)

169

Increase (decrease) in other current liabilities

(511)

(456)

Other, net

116

69

Subtotal

5,249

1,205

Interest and dividends income received

231

325

Interest expenses paid

(131)

(146)

Income taxes paid

(812)

(897)

Surcharges paid

(718)

(246)

Net cash provided by (used in) operating activities

3,818

240

11

(Millions of yen)Six months ended
September 30, 2019

Six months ended
September 30, 2018
(Apr. 1, 2018–September 30, 2018)(Apr. 1, 2019–September 30, 2019)

AmountAmountNet cash provided by (used in) investing activities
Purchase of tangible fixed assets(3,220)(3,975)

Proceeds from sales of tangible fixed assets

127

47

Purchase of intangible assets

－

(265)

Proceeds from sales of investment securities
Payments into time deposits
Proceeds from withdrawal of time deposits

－

5,299

(736)

(24)

30

99

Others(159)30

Net cash provided by (used in) investing activities(3,959)1,212

Net increase (decrease) in short-term loans payable

38

1,005

Proceeds from long-term loans payable

730

2,300

Repayment of long-term loans payable(1,073)(1,472)

Net cash provided by (used in) financing activities

Proceeds from share issuance to non-controlling shareholders

50－

Purchase of treasury stock(0)(1,355)

Cash dividends paid

(477)

(397)

Cash dividends paid to non-controlling shareholders

(51)

(72)

411

－

Others

(212)

(227)

Net cash provided by (used in) financing activities

(585)

(220)

Effect of exchange rate change on cash and cash equivalents

(294)

(152)

Net increase (decrease) in cash and cash equivalents(1,019)1,080

Cash and cash equivalents at beginning of period

11,965

13,826

Cash and cash equivalents at end of period

10,946

14,907

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

12

(4) Notes to quarterly consolidated financial statements(Going concern assumptions)Not applicable(Notes in the event of significant changes in shareholders’ equity)
We acquired 373,500 treasury shares based on a resolution at the meeting of the board of directors held on June18, 2019, we acquired 282,800 treasury shares based on a resolution at the meeting of the board of directors heldon August 2, 2019, and we acquired 103,500 treasury shares based on a resolution at the meeting of the board of
directors held on August 22, 2019. As a result, in the current second quarter consolidated accumulative period,
treasury shares increased by 1,355 million yen and as of the end of the current second quarter consolidated
accounting period, treasury shares resulted in 2,257 million yen.
(Changes of accounting policy)
The consolidated overseas subsidiaries that applying International Financial Reporting Standards(IFRS) have been
applying IFRS No.16 “Lease” (January 13, 2016. Hereinafter referred to as “IFRS No.16”) from beginning of thefirst quarterly consolidated accounting period.
This has led to lessees post all leases as assets and liabilities on balance sheet in principle. The application of
IFRS No.16 is subject to the transitional accounting treatment. The consolidated overseas subsidiaries applies themethod for recognizing the cumulative effect of adoption of this standards at applying start date.
As a result, the end of the current second quarter consolidated accounting period, lease assets increased by 440
million yen, lease obligations of current liabilities increased by 104 million yen, and lease obligations of
noncurrent liabilities increased by 340 million yen. The effect on profit and loss in the current second quarter
consolidated accumulative period is negligible.

13

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

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

Asia

China

Total

Other
(Note 3)

2,268

8,690

10,512

67,091

489

67,580

70

266

34

931

4,067

1,642

5,710

15,953
247

2,534
(478)

8,724
1,167

11,443
1,469

71,159
2,771

2,132
101

73,291
2,872

Japan

UnitedStatesEurope29,73815,882

2,764
32,502365

Total

Note: 1. Our Group consists of the Company and these overseas corporations which are based on a manufacturing
and sales structure. As such, “Japan”, “the United States”, “Europe”, “Asia” and “China” are our fivereportable segments.
2. Major countries or regions belong to each reportable segment
Europe ··············· the Czech Republic, Russia, Germany
Asia ················· Thailand, Indonesia, Vietnam
3. “Other” comprises business operations that are not categorized as reportable segments and includes thebusiness activities of domestic subsidiaries, such as the transportation business.
2. Difference between total segment income (loss) for reportable segments and operating income on consolidated
statements of income, and details of the difference (reconciliation of the difference)(Millions of yen)
IncomeAmountTotal segment income
2,771
Income for “Other”
101
Intersegment eliminations
201
Operating income on consolidated statements of income
3,073
3. Impairment loss on noncurrent assets and goodwill, etc., by reportable segment(Significant impairment loss on noncurrent assets)
In the segment of “China,” we posted impairment losses of goodwill 192 million yen as an extraordinary loss.
(Significant change in goodwill amount)Not applicable(Significant gain on bargain purchase)
Not applicable14

II Six months ended September 30, 2019 (from April 1, 2019 to September 30, 2019)
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)

Other(Note 3)

Total

Japan

UnitedStatesEurope29,147

16,568

1,308

8,626

9,929

65,580519

66,100

3,456

76

240

32

826

4,632

1,638

6,271

32,604

16,645

1,549

8,658

10,75570,213

2,157

72,371

(289)

(150)

(566)

1,037

1,289

1,319

74

1,394

Asia

China

Total

Note: 1. Our Group consists of the Company and these overseas corporations which are based on a manufacturing
and sales structure. As such, “Japan”, “the United States”, “Europe”, “Asia” and “China” are our fivereportable segments.
2. Major countries or regions belong to each reportable segment
Europe ··············· the Czech Republic, Russia, Germany
Asia ················· Thailand, Indonesia, Vietnam
3. “Other” comprises business operations that are not categorized as reportable segments and includes thebusiness activities of domestic subsidiaries, such as the transportation business.
2. Difference between total segment income (loss) for reportable segments and operating income on consolidated
statements of income, and details of the difference (reconciliation of the difference)(Millions of yen)
IncomeAmountTotal segment income
1,319
Income for “Other”
74
Intersegment eliminations
271
Operating income on consolidated statements of income
1,666
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)Six months ended
September 30,2018

Six months ended
September 30, 2019

(Apr. 1, 2018–September. 30, 2018)

Amount%

FY2018

Increase/Decrease(Apr 1.2018-Mar 31,2019)

AmountAmount(Apr. 1, 2019–September.30, 2019)

Amount%%%For Automobile

47,94070.9

48,622

73.6

682

1.4

97,77171.8

For Construction &Industrial machine

15,10822.4

14,240

21.5

-867

-5.7

30,342

22.3

For Air conditioner

2,811

4.2

1,710

2.6

-1,100

-39.2

4,602

3.4

Other

1,720

2.5

1,526

2.3

-194

-11.9

3,408

2.5

67,580100.0
66,100Total
Notes: Amounts less than one million yen have been truncated.

100.0-1,480-2.2

136,125100.0

16