Consolidated Financial Results for the Fiscal Year Ended March 31, 2020(J-GAAP)May 18, 2020
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 the Ordinary General Meeting of Shareholders: June 25, 2020
Scheduled date of filing of securities report:
June 25, 2020
Scheduled date of start of dividend payments:
June 26, 2020
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 Fiscal Year Ended March 31, 2020
(April 1, 2019 to March 31, 2020)(1) Consolidated operating performance(Percentage figures indicate year-on-year change)
Net sales

Operating income

Millions of yen% Millions of yen

Fiscal year ended
130,524-4.1
2,843
March 31, 2020
Fiscal year ended
136,125
9.4
5,092
March 31, 2019
Note: Comprehensive income
Fiscal year ended March 31, 2020: ¥910 million
Fiscal year ended March 31, 2019: ¥ -8 million
Net income per
share

Ordinary income% Millions of yen

Profit attributable toowners of parent% Millions of yen
%

-44.2

2,883

-48.3

1,435

-17.3

-12.1

5,572

-13.6

1,735

-53.0

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

Yen

Yen

Fiscal year ended
194.28―March 31, 2020
Fiscal year ended
218.01―March 31, 2019
Reference: Equity earnings (losses) of affiliates
Fiscal year ended March 31, 2020: ¥ -52 million
Fiscal year ended March 31, 2019: ¥196 million(2) Consolidated financial position
Total assets
Millions of yen

Net assets

%

%

%

3.3

3.2

2.2

3.9

6.0

3.7

Equity ratio

Net assets per share

Millions of yen%

Yen

44,84648.1

5,916.09

46,17047.4

5,537.37(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

3,093(1,778)(1,357)

13,724

8,558(6,387)71

13,826

Fiscal year ended
88,493
March 31, 2020
Fiscal year ended
92,929March 31, 2019
Reference: Shareholders’ equity
As of March 31, 2020: ¥43,048 million
As of March 31, 2019: ¥44,072 million

Fiscal year ended
March 31, 2020
Fiscal year ended
March 31, 20191

2. Dividends
1Q
Yen

Dividends per Share
Year2Q
3Q
End
Yen

Yen

Total

Total Dividends
Paid (Annual)(Consolidated)

Yen

Millions of yen%

Yen

Payout Ratio

Dividends per
Net Assets(Consolidated)%

Fiscal year ended
―
―
40.00
50.00 90.00
716
41.3
1.6
March 31, 2019
Fiscal year ended
―
―
40.00
50.00 90.00
648
45.2
1.6
March 31, 2020
Fiscal year ending
―
―
―
―
―
―
March 31, 2021
(Forecast)
Note: We set the term-end date as the dividend reference date on the Articles of Incorporation. However, at the present
moment, the expected dividend on the reference date (Fiscal year ending March 31, 2021) has not been decided.

3. Forecast of Consolidated Financial Performance for the Fiscal Year Ending March 31, 2021
(April 1, 2020 to March 31, 2021)(Percentage figures indicate changes from the same period of the previous year)
Net
Profit attributable to
Net sales
Operating income
Ordinary income
incomeperowners of parent
shareMillions ofMillions ofMillions ofMillions of
%
%
%
%
Yen
yen
yen
yen
yen
nd
2 Quarter ending
48,600-26.5(1,200) -172.0(1,200) -173.5(1,800) -205.8(250.03)
September 30, 2020
Fiscal year ending
108,300-17.0
300 -89.4
100-96.5(1,400) -197.6(194.47)
March 31, 2021
4. Other(1) Changes in significant subsidiaries during the period (changes in specific subsidiaries resulting in changes inthe scope of consolidation): None
(2) Changes in accounting principles, procedures, 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.19 “4. Consolidated Financial Statements and main notes (5) Notes concerning
consolidated financial statement (Changes of accounting policy)”(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, 2020: 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 March 31, 2020: 1,145,320 shares
As of March 31, 2019: 384,960 shares
3) Average number of shares outstanding during the period
Fiscal year ended March 31, 2020: 7,390,393 sharesFiscal year ended March 31, 2019: 7,959,670 shares

2

(Reference) Summary of Non-consolidated Financial Performance
1. Non-consolidated Financial Performance for Fiscal Year Ended March 31, 2020
(April 1, 2019 to March 31, 2020)(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, 2020
Fiscal year ended
March 31, 2019

Millions of yen%

63,484
66,794

Millions of yen%

Millions of yen%

Millions of yen

%

-5.0

(602) -191.5

2,847

-19.1

2,735

388.2

5.2

658

3,522

-12.5

560

-79.3

Net income per share
Fiscal year ended
March 31, 2020
Fiscal year ended
March 31, 2019

8.8

Diluted net
income per share

Yen

Yen

370.12

―

70.39

―

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

Net assets

Equity ratio

Net assets per share

Millions of yen%

Yen

31,32855.6

4,351.70

31,09852.5

3,907.09

Fiscal year ended
56,332
March 31, 2020
Fiscal year ended
59,280March 31, 2019
Reference: Shareholders’ equity
As of March 31, 2020: ¥31,328 million
As of March 31, 2019: ¥31,098 million

2. Forecast of Non-Consolidated Financial Performance for the Fiscal Year Ending March 31, 2021
(April 1, 2020 to March 31, 2021)(Percentage figures indicate changes from the same period of the previous year)Net
Net sales
Operating income
Ordinary income
Net income
income pershare
Millions ofMillions ofMillions ofMillions of
%
%
%
%
Yen
yen
yen
yen
yen
2nd Quarter ending
23,000-29.5(1,200) -313.8
0 -100.0(1,600) -172.7(222.25)
September 30, 2020
Fiscal year ending
52,800-16.8(1,000) -66.1
1,400
-50.8
(700) -125.6(97.23)
March 31, 2021
* 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.

3

Table of Contents
1. Business Results and Qualitative Information for the Fiscal Year Ended March 31, 2020 ························ 5(1) General overview of financial performance ······································································· 5(2) General overview of Consolidated financial position····························································· 6
2. Overview of the T.RAD Group ·························································································· 7
3. Basic Concept Behind the Selection of Accounting Standards ······················································· 9
4. Consolidated Financial Statements ···················································································· 10(1) Consolidated balance sheets ······················································································· 10(2) Consolidated statements of income and consolidated statement of comprehensive income ················ 12(Consolidated statements of income) ··········································································· 12(Consolidated statement of comprehensive income) ·························································· 14(3) Consolidated statements of changes in net assets ······························································· 15(4) Consolidated statements of cash flows ··········································································· 17(5) Notes concerning consolidated financial statement ····························································· 19(Going concern assumptions) ····················································································· 19(Notes in the event of significant changes in shareholders’ equity) ··········································· 19(Changes of accounting policy) ··················································································· 19(Basis for preparation of consolidated financial statements) ··················································· 20(Consolidated balance sheets) ····················································································· 23(Consolidated statements of income) ············································································· 24(Consolidated statement of changes in net assets) ······························································ 27(Notes to consolidated statement of cash flows) ································································ 29(Additional information) ··························································································· 29(Segment information) ····························································································· 29(Supplementary information) ······················································································ 32(Per share information)····························································································· 33(Omitted disclosure) ································································································ 33
5. Non-Consolidated Financial Statements and main notes ···························································· 34(1) Non-consolidated balance sheets·················································································· 34(2) Non-consolidated statements of income ········································································· 37(3) Non-consolidated statements of changes in net assets ·························································· 39(4) Notes concerning non-consolidated financial statement························································ 41(Going concern assumptions) ····················································································· 41(Notes in the event of significant changes in shareholders’ equity) ··········································· 41(Additional information) ··························································································· 41

41. Business Results and Qualitative Information for the Fiscal Year Ended March 31, 2020
(1) General overview of financial performance
General overview
In the economic environment of the consolidated fiscal year under review, exports were sluggish due to the gradualslowdown of the world economy. On the other hand, domestic demand remained firm and steady. However, there isconcern that the spread of novel coronavirus infection will significantly worsen the global economy.
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. Operating income decreased except Europe and China. The
profit attributable to owner of parent decreased from the same period of the previous year due to the decrease of net sales
etc.
As a result, net sales during the consolidated fiscal year under review decreased by 5,600 million yen from the previous
fiscal year, amounting to 130,524 million yen (down 4.1% year on year), operating income decreased by 2,248 million yen,amounting to 2,843 million yen (down 44.2% year on year), ordinary income decreased by 2,688 million yen, amounting to2,883 million yen (down 48.3% year on year) and profit attributable to owners of parent decreased by 299 million yen,amounting to 1,435 million yen (down 17.3% year on year).
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 datewere used. With respect to important transactions conducted during the period between this date and the book-closing
date for consolidated accounting, we have made adjustments as necessary for consolidated accounting. The segments
relevant to such adjustments are the United States, Europe, Asia and China.
Three of domestic subsidiaries have the same settlement date that coincides with the last day of the consolidated fiscal
year. The corresponding segment is Other.
Net Sales
Fiscal year
ended March
31, 2019

Fiscal year
ended March
31, 2020(Millions of yen)

(Millions of yen)

Operating Income (Loss)

Increase/
Decrease

Percentagechange(on a foreign
currency basis)*

Fiscal year
ended March
31, 2019

Fiscal year
ended March
31, 2020

Increase/
Decrease

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

(Millions of yen)

(Millions of yen)

(Millions of yen)

(%)

Japan
60,901
56,639-4,261
-7.0
660
(603)
-1,263-191.4
United31,39431,040
-353
0.1
(325)
(892)
-566
-177.3
StatesEurope
3,707
2,928
-778
-20.9
(1,298)(1,017)
280
20.4
Asia
18,547
17,739
-807
-8.8
2,682
2,176
-505
-22.7
China
20,633
21,211
577
5.7
2,807
2,769
-38
1.5
Other
(including
941
964
23
2.4
566
411
-155
-27.4
elimination)
Total
136,125
130,524-5,600
-4.1
5,092
2,843
-2,248-45.0*The percentage changes (on a foreign currency basis) in the chart are the percentage changes after correcting fordifferences arising from fluctuations in the foreign exchange rates applicable to overseas net sales.

(i) Japan
Net sales of products for automobile industry decreased from the same period of the previous year due to the decrease of thesales of major customers etc. The net sales of products for construction and industrial machines largely decreased from thesame period of the previous year due to the decrease of demand for China and Mining market. As a result, the net sales in
the Japan segment decreased by 4,261 million yen, resulting in 56,639 million yen.
Operating loss of 603 million yen was posted, worsening by 1,263 million yen from the same period of the previous
year, due to decreased of net sales etc.
(ii) United States
The net sales of products for the automobile industry increased from the same period of the previous year due to theincrease of the sales of major customers etc. The net sales of products for construction and industrial machines decreased
from the same period of the previous year due to the decrease of the sales of major customers. As a result, the net sales in
the United States segment decreased by 353 million yen from the same period of the previous year, resulting in 31,040
million yen due partly to foreign exchange factors. However, on a foreign currency basis, it remained level year on year.
Operating loss of 892 million yen was posted, worsening by 566 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 177.3%.
5

(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 778 million yen from the same period of the previous year, resulting in 2,928 million yen. On
a foreign currency basis, it decreased by 20.9%.
Operating loss of 1,017 million yen was posted, improved by 280 million yen from the same period of the previous year,
due to the decrease of scrap cost etc. On a foreign currency basis, it increased by 20.4%.
(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 807 million yen from the same period of the previous year, resulting in 17,739
million yen. On a foreign currency basis, it decreased by 8.8%.
Operating income decreased by 505 million yen from the same period of the previous year, resulting in 2,176 million
yen. On a foreign currency basis, it decreased by 22.7%.
(v) China
The net sales of products for the automobile industry increased from the same period of the previous year due to theincrease of sales for Japanese customers despite the decrease of sales of local customers. Net sales of products forconstruction and industrial machines decreased 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 increased by 577 million yen from the same period of
the previous year, resulting in 21,211 million yen. On a foreign currency basis, it increased by 5.7%.
The operating income decreased by 38 million yen from the same period of the previous year due to foreign exchange
factors, resulting in 2,769 million yen. On a foreign currency basis, it increased by 1.5%.
Outlook for the fiscal year ending March 31, 2021
Regarding the outlook for the fiscal year ending March 31, 2021 of the T.RAD group, as the net sales are decreasing due tothe COVID-19 pandemic, it is difficult to predict the future recovery time. However, in forecasting business performance,
we assume that it will gradually recover from July 2020 through March 2021.
Therefore, we forecasts the following consolidated financial performance for the fiscal year ending March 31, 2021:
net sales of 108,300 million yen (down 17.0% year on year), operating income of 300 million yen (down 89.4% year onyear), ordinary income of 100 million yen (down 96.5% year on year), and loss attributable to owners of parent of 1,400
million yen (down 197.6% year on year).
As for the profit distribution for the fiscal year ending March 31 2021, neither the interim dividend nor the year-end
dividend has been decided due to the uncertain outlook.
(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 88,493 million yen (down 4,436 million
yen from the end of the previous fiscal year) due to the sales of investment securities etc.
Liabilities resulted in 43,646 million yen (down 3,112 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 44,846 million yen (down 1,323 million yen) due to the purchase of treasury stock etc. despite
increases of retained earnings etc.
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 3,093 million yen, a decrease of 5,465 million yen year on year due to thedecrease of accounts payable-trade etc. Net cash used by investing activities was 1,778 million yen, a decrease of 4,608
million yen year on year due to the sales of investment securities etc. Net cash used in financing activities was 1,357
million yen, a decrease of 1,429 million yen year on year due to the purchase of treasury stock etc. despite increase of loans
payable.
As a result, cash and cash equivalents at the end of the fiscal year under review totaled 13,724 million yen, a decrease of
101 million yen from the end of the previous fiscal year.

62. Overview of the T.RAD Group(1) Contents of Businesses
The T.RAD Group, which consists of T.RAD Co., Ltd. (the “Company”), its 18 subsidiaries and two affiliates,
mainly manufactures and sells various types of heat exchangers and provides related services.
Each reportable segment is composed as below, and these reportable segments are the same as theclassification of the segment information listed in 4. Consolidated Financial Statements (5) Notes concerning
Consolidated Financial Statements.
Reportable Segments
Main company
Japan
T.RAD Co., Ltd. (the Company)
United States
T.RAD North America, Inc.
Tripac International Inc.
EuropeT.RAD Czech s.r.o.
TRM Corporation B.V.
TRM LLC
T.RAD Sales Europe GmbH
Asia
T.RAD (THAILAND) Co., Ltd.
PT. T.RAD INDONESIA
T.RAD (VIETNAM) Co., Ltd.
TORC Co., Ltd. *1
TATA TOYO RADIATOR, Ltd. *1
China
T.RAD (Zhongshan) Co., Ltd.
T.RAD (Jining) Co., Ltd.
T.RAD (Changshu) Co., Ltd.
T.RAD (Changshu) R&D Center Co., Ltd.
Qingdao Toyo Heat Exchanger Co, Ltd.
Other (Japan)
Asuni Co., Ltd.
Towa Unyu Co., Ltd.
Towa Kosan Co., Ltd.
T.RAD CONNECT Co., Ltd.
*1 Equity-method affiliates are included in the reportable segment where they are located.
*2 As of April 1, 2020, Asuni Co., Ltd. and Towa Kosan Co., Ltd. were merged into T.RAD Co., Ltd.
*3 As of April 1, 2020, Towa Unyu Co., Ltd. changed its company name to T.RAD Logistics Co., Ltd.
[Business Flow Chart]
The flow chart for the businesses of the T.RAD Group is as follows.
Customers
Products

Products

T.RAD North America, Inc. (U.S.A)*1

Asuni Co., Ltd.*1
1

T.RAD (THAILAND) Co., Ltd. (Thailand)*
T.RAD (Zhongshan) Co., Ltd. (China)*1
T.RAD Czech s.r.o. (Czech Republic)*1

Products

Products

PT. T.RAD INDONESIA (Indonesia)*1

T.RAD Sales Europe GmbH*1

TRM Corporation B.V. (Netherlands)*1

Sales related Services

TRM LLC (Russia)*1
T.RAD (Jining) Co., Ltd. (China)*1
T.RAD CONNECT Co., Ltd.*1

T.RAD (Changshu) Co., Ltd. (China)*1
T.RAD (VIETNAM) Co., Ltd. (Vietnam)*1

Development and Sales ofSoftwareTripac International Inc.(U.S.A) *1
Qingdao Toyo Heat Exchanger Co, Ltd. (China) *1
TORC Co., Ltd. (Thailand)*2

Logistics, Services

TATA TOYO RADIATOR, Ltd. (India)*2
2

Towa Unyu Co., Ltd.*1

Products, Semi finished goods, Parts
T.RAD Co., Ltd. (the Company)
R&D

Services

Towa Kosan Co., Ltd.*1*1Consolidated subsidiary *2Equity-method affiliate

T.RAD (Changshu) R&D Center Co., Ltd. (China) *1

7

(2). Subsidiaries and Affiliates
Name

Location

Capital(Thousand)Descriptionof business

Voting rights
ratio (%)

Relations with theCompany
Business relationship
Concurrent positionof director
Obligation Guarantee
Business relationship

Consolidated subsidiaries
T.RAD North
Hopkinsville,
America, Inc. *2,4 Kentucky, U.S.A

USD
80,000

Manufacture andsales of heatexchangers

100.0

Tripac International
Inc.

Fort Worth, Texas,
U.S.A

USD
4,166

95.3
*1 (95.3)

T.RAD Czech s.r.o.
*2

Unhost, Czech

CZK
1,120,000

Manufacture andsales of heatexchangers
Manufacture andsales of heatexchangers

TRM Corporation
B.V.*2Amsterdam,
Netherlands

EUR
31,654

TRM LLC*2
T.RAD (THAILAND)
Co., Ltd.*2

Nizhniy
Novgorod,
RussiaChachoengsao,
ThailandPT. T.RAD
INDONESIA

Bekasi, Java,
Indonesia

USD
7,300

T.RAD (VIETNAM)
Co., Ltd.

Hanoi,
Vietnam

USD
6,300

T.RAD (Zhongshan)Co., Ltd.*2

Zhongshen,
Guangdong, China

CNY107,601

T.RAD (Jining) Co.,Ltd.

Jining,Shandong, China

CNY
3,000

T.RAD (Changshu)
Co., Ltd.*2

Changshu,
Jiangsu, China

USD
17,000T.RAD (Changshu)
R&D Center Co., Ltd.
T.RAD Sales Europe
GmbH
Qingdao Toyo Heat
Exchanger Co., Ltd.

Changshu,
Jiangsu, China
Stuttgart,
Germany
Qingdao,
Shandong, China

USD
2,700
EUR
25,000CNY
61,339Asuni Co., Ltd.

Hadano,Kanagawa, Japan
Higashiura, Chita,
Aichi, Japan

JPY
15,325
JPY
48,900Towa Kosan Co., Ltd.

Minami-ku,Nagoya,
Aichi, Japan

T.RAD CONNECT
Co., Ltd.

Shibuya-ku,
Tokyo, Japan

JPY
334,720JPY
50,000Management ofproperties, etc.
Planning,
development,
production and saleof software etc.

100.0
*1 (7.3)
51.0

Equity-method affiliates
TORC Co., Ltd.
Chachoengsao,
Thailand

THB
60,00045.0

Business relationship

TATA TOYORADIATOR, Ltd.

INR
320,000

Manufacture andsales of heatexchangers
Manufacture andsales of heatexchangers

40.2

Business relationshipTowa Unyu Co., Ltd.

Pune, India

RUB
1,422,188

THB
390,500

Manufacture andsales of heatexchangers
Manufacture andsales of heatexchangers
Manufacture andsales of heatexchangers
Manufacture andsales of heatexchangers
Manufacture andsales of heatexchangers
Manufacture andsales of heatexchangers
Manufacture andsales of heatexchangers
Manufacture andsales of heatexchangers
Development of heatexchangers
Sales services ofT.RAD in Europe
Manufacture andsales of heatexchangers
Sales of heatexchangers
Cargo transportation

97.7

79.0
79.0
*1 (79.0)
100.0
90.0
*1 (26.3)
100.0
90.0
90.0
*1 (90.0)
90.0
100.0
100.0
51.0
100.0
*1 (50.0)
100.0*1 (13.0)

Business relationship
Concurrent positionof director
Obligation Guarantee
Loan of funds
Holding Company of
TRM LLCBusiness relationshipObligation Guarantee
Loan of funds
Business relationship
Concurrent positionof director
Business relationship
Concurrent positionof director
Business relationship
Concurrent positionof director
Business relationship
Concurrent positionof director
Business relationship
Business relationship
Concurrent positionof director
Business relationship
R&D Center
Business relationship
Business relationship
Concurrent positionof director
Business relationship
Business relationshipTransportation of
Products etc.
Business relationship
Business relationship
Concurrent positionof director

Notes:*1. The figures in parentheses are the ratios that the Company indirectly holds.
*2. T.RAD North America, Inc., T.RAD Czech s.r.o., TRM Corporation B.V., TRM LLC., TRAD (THAILAND) Co.,
Ltd., T.RAD (Zhongshan) Co., Ltd., and T.RAD (Changshu) Co., Ltd are specific subsidiaries of the Company.
8*3. Eighteen consolidated subsidiaries and two affiliates mentioned above have not submitted any securities registration
statements or securities reports.
*4. Net sales(except internal sales among consolidated companies) accounted for over 10% of consolidated net sales.
However, the principal income summary is omitted, as net sales of the subsidiary accounted for over 90% of net sales
in United States area of the segment information.

3. Basic Concept Behind the Selection of Accounting Standards
In order to ensure comparability between companies and over time, the T.RAD Group prepares the Company’s
consolidated financial statements based on the “Ordinance on Terminology, Forms, and Preparation Methods ofConsolidated Financial Statements (except Chapters 7 and 8)” (Ordinance of the Ministry of 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.

9

4．Consolidated Financial Statements(1) Consolidated balance sheets(Millions of yen)
FY2018FY2019As of March 31, 2019

As of March 31, 2020

AmountAmount(Assets)
Current assets
Cash and deposits*213,894*2

13,419Notes and accounts receivable-trade*3

24,742*3

22,274

Electronically recorded monetary claims-operating

*3

2,589

*3

3,873

Short-term investment securities

399

499

Merchandise and finished goods

2,714

3,864

Work in process

734

741

Raw materials and supplies

5,370

5,725

Others

2,792

2,603

Allowance for doubtful accounts

(85)

(73)

53,152

52,927

Total current assets
Noncurrent assets
Tangible fixed assets
Buildings and structures

20,50021,254

Accumulated depreciation(14,111)(14,753)

Building and structures, net

6,389

6,501

Machinery, equipment and vehicles

50,26452,014

Accumulated depreciation(35,025)(36,326)

Machinery, equipment and vehicles, net

15,23915,687

Land

2,335

2,374

Lease assets

250

757

Accumulated depreciation

(147)

(230)

Lease assets, net

102

526

Construction in progress

3,457

4,104

Other tangible fixed assets

28,58529,905

Accumulated depreciation(26,467)(27,774)

Other tangible fixed assets, net

2,117

2,131

Total tangible fixed assets

29,641

31,326

Goodwill

228

111

Other intangible assets

1,255

1,173

Total intangible assets

1,484

1,284

Intangible assets

Investments and other assets*1

Investment securities

7,668

*1

2,206

Net defined benefit asset

233－

Deferred tax assets

63

78

Others704

681

Allowance for doubtful accounts

(19)

(13)

Total investments and other assets

8,650

2,953

Total noncurrent assets

39,77635,56592,92988,493

Total assets

10

(Millions of yen)
FY2019FY2018
As of March 31, 2019

As of March 31, 2020

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

14,280Electronically recorded obligations - operating

*3

5,340

12,149*3

3,414

Short-term loans payable

8,061

6,205

Lease obligations

414

611

Income taxes payable

658

791

Accrued expenses

2,797

2,779

Provision for bonuses

1,390

1,282

Provision for directors’ bonuses

84

43

Provision for product warranties

235

181

Provision for shareholders benefit program

48

39

Provision for loss on order received－

Electronically recorded obligations - non-operating

*3

729

92
*3

384

Asset retirement obligations

116

200

Others

1,895

1,495

Total current liabilities

36,05329,671Long-term loans payable

8,368

10,039Lease obligations

777

2,350

Deferred tax liabilities

Noncurrent liabilities

1,324

940

Provision for directors' retirement benefits

5

4

Net defined benefit liability

95

410

Asset retirement obligations

90

91

Others43

138

10,705

13,97446,75943,646

8,545

8,545

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

7,551

7,496

Retained earnings

28,31529,065

Treasury stock(901)(2,257)

Total shareholders’ equity

43,51242,850

Valuation difference on available-for-sale securities

456

(6)

Foreign currency translation adjustment

(381)

(405)

Remeasurements of defined benefit plans

485

152

Total valuation and translation adjustments

559

(259)

Non-controlling interests

2,098

2,256

Total net assets

46,17044,846

Total liabilities and net assets

92,92988,493

Valuation and translation adjustments11(2) Consolidated statements of income and consolidated statement of comprehensive income(Consolidated statements of income)(Millions of yen)
FY2019FY2018(Apr. 1, 2018–Mar. 31, 2019)(Apr. 1, 2019–Mar. 31, 2020)

AmountAmountNet sales

136,125#1, #7

Cost of sales
Gross profit

120,302130,524#1, #7

117,051

15,822

13,472

Packing and delivery expenses

1,749

1,550

Provision for product warranties

162

164

Selling, general and administrative expenses

Directors' compensations

212

225

Salaries and allowances

2,153

2,377

Provision for bonuses

302

331

Provision for directors’ bonuses

84

43

Provision for directors’ retirement benefits

1

2

Provision for retirement benefits

65

96

Welfare expenses

1,080

1,259

Depreciation

356

441

Rent expenses

448

395

612

Transportation and communication expenses#1

Research and development expenses

1,417

617
#1

1,247

Entertainment expenses

109

90

Provision for shareholders benefit program22

29

Provision of allowance for doubtful accounts

20Provision for loss on order received－

92

Commission Fee

463

423

Miscellaneous expenses

1,326

1,240

158

－

Total selling, general and administrative expenses

10,73010,629Operating income (loss)

5,092

2,843

Interest income

153

172

Dividends income

185

103

Equity in earnings of affiliates

196－

Others331

295

Total non-operating income

865

571

Interest expenses

248

300

Foreign exchange losses

105

145

Equity in losses of affiliates－

52

Amortization of goodwill

Non-operating income

Non-operating expenses

Others31

33

Total non-operating expenses

386

532

Ordinary income

5,572

2,883

12

(Millions of yen)
FY2019FY2018(Apr. 1, 2018–Mar. 31, 2019)(Apr. 1, 2019–Mar. 31, 2020)

AmountAmountExtraordinary income#2

Gain on sales of noncurrent assets

171

#2

－

1,498

Gain on sales of investment securities

74

Gain on transfer of business－

64

Total extraordinary income

171

1,637

Extraordinary loss
Loss on retirement of noncurrent assets#3

90

Loss on sales of noncurrent assets

#4

99

#3

#5

Impairment loss

1,418

#5

102

11

Loss on sales of golf club memberships

292

12

382

－

Loss on sales of investment securities

251

#4

0

Total extraordinary loss

1,912

773

Income (loss) before income taxes

3,830

3,747

Income taxes-current

1,690

2,025

Income taxes-deferred

195

(55)

Total income taxes

1,885

1,969

Profit (loss)

1,945

1,777

Profit (loss) attributable to non-controlling interests

209

341

Profit (loss) attributable to owners of parent

1,735

1,435

13

#6

24

Surcharges#6

(Consolidated statement of comprehensive income)(Millions of yen）
FY2018FY2019(Apr. 1, 2018–Mar. 31, 2019)(Apr. 1, 2019–Mar. 31, 2020)

AmountAmount
1,945

1,777

Valuation difference on available-for-sale securities

(591)

(462)

Foreign currency translation adjustment(1,138)(55)

Remeasurements of defined benefit plans, net of tax

(190)

(333)

Profit (loss)
Other comprehensive income

(32)

(14)

(1,953)

(866)

(8)

910

Comprehensive income attributable to owners of parent

(108)

615

Comprehensive income attributable to non-controlling interests

100

294

Share of other comprehensive income of associates accounted for using equity method

Total other comprehensive income
Comprehensive income(Breakdown)

14(3) Consolidated statements of changes in net assets
Fiscal year ended March 31, 2019(April 1, 2018 to March 31, 2019)(Millions of yen)
Shareholders’ Equity
Capital stock
As of April 1, 2018

Capital surplus

8,545

Retained earnings

7,434

Total
shareholders’ equity

Treasury stock

27,376(899)

42,457

Changes of items during the period
Dividends from surplus

(795)

(795)

Profit attributable toowners of parent

1,735

1,735

Purchase of treasury stock(1)

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(1)116

As of March 31, 2019

116

－

116

939

(1)

1,054

8,545

7,551

28,315(901)

43,512(Millions of yen)
Valuation and translation adjustments
Valuation difference
on available-for-salesecurities
As of April 1, 2018

1,047

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total valuationand translation
adjustments

Non-controllinginterests

Total net assets

677

2,404

1,777

46,639679

Changes of items during theperiodDividends from surplus(795)

Profit attributable toowners of parent

1,735

Purchase of treasury stock
Change in ownership interestof parent due to transactions
with non-controlling interests
Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
As of March 31, 2019

(1)
116
(591)

(1,061)(191)(1,844)320(1,524)(591)(1,061)(191)(1,844)

320

(469)

456

(381)

485

559

2,098

46,17015

Fiscal year ended March 31, 2020 (April 1, 2019 to March 31, 2020)(Millions of yen)
Shareholders’ Equity
Capital stock
As of April 1, 2019

Capital surplus

8,545

Retained earnings

7,551

Total
shareholders’ equity

Treasury stock

28,315(901)

43,512

Changes of items during the period
Dividends from surplus

(685)

(685)

Profit attributable toowners of parent

1,435

1,435

Purchase of treasury stock(1,356)

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(1,356)(54)

As of March 31, 2020

(54)

－

(54)

749

(1,356)

(661)

8,545

7,496

29,065(2,257)42,850(Millions of yen)
Valuation and translation adjustments
Valuation difference
on available-for-salesecurities
As of April 1, 2019

456

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total valuationand translation
adjustments

Non-controllinginterests

Total net assets

485

559

2,098

46,170(381)

Changes of items during theperiodDividends from surplus(685)

Profit attributable toowners of parent

1,435

Purchase of treasury stock
Change in ownership interestof parent due to transactions
with non-controlling interests
Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
As of March 31, 2020

(1,356)
(54)
(462)

(24)

(333)

(819)

158

(662)

(462)

(24)

(333)

(819)

158

(1,323)

(6)

(405)

152

(259)

2,256

44,84616

(4) Consolidated statements of cash flows(Millions of yen)
FY2019FY2018(Apr. 1, 2018–Mar. 31, 2019)(Apr. 1, 2019–Mar. 31, 2020)

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

3,830

3,747

Depreciation and amortization

6,339

6,240

Impairment loss

1,418

102

Retirement benefit expenses

(103)

(37)

67

101

Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for directors' retirement benefits

1(1)Increase (decrease) in allowance for doubtful accounts

14

(16)

Increase (decrease) in provision for bonuses

(76)

(108)

Increase (decrease) in provision for directors' bonuses

(12)

(40)

Increase (decrease) in provision for product warranties

41

(50)

Increase (decrease) in provision for shareholders benefit program

(14)

(9)

Loss on retirement of noncurrent assets

90

251

Loss (gain) on sales of tangible fixed assets

(71)

(62)

Loss (gain) on sales of investment securities－(1,116)

Surcharges

292

24

Interests and dividends income

(338)

(276)

Interests expenses

248

300

Foreign exchange losses (gains)46

31

Equity in (earnings) losses of affiliates

(196)

52

Decrease (increase) in notes and accounts receivable-trade

(408)

1,188

Decrease (increase) in inventories(791)(1,552)

Increase (decrease) in notes and accounts payable-trade

1,333(3,973)

Loss (gain) on investments in partnership－(5)

Decrease (increase) in other current assets

(494)

(188)

Increase (decrease) in other current liabilities

(511)

330

Other, net

3781

Subtotal

10,743

5,012

432

445

Interest and dividends income received
Interest expenses paid

(248)

(299)

Income taxes paid

(1,622)(1,805)

Surcharges

(746)

(260)

Net cash provided by (used in) operating activities

8,558

3,093

17

(Millions of yen)
FY2019FY2018(Apr. 1, 2018–Mar. 31, 2019)(Apr. 1, 2019–Mar. 31, 2020)

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

169

294

Payments into time deposits

(95)

(30)

Purchase of tangible fixed assets(6,774)(7,696)

Proceeds from sales of tangible fixed assets

717

80

Purchase of intangible assets

(428)

(304)

Purchase of investment securities－(0)

Proceeds from sales of investment securities

－

5,835

Other, net

2541(6,387)(1,778)

759

(375)

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

2,233

2,661

Repayment of long-term loans payable(2,533)(2,395)51－

Proceeds from share issuance to non-controlling shareholders
Purchase of treasury stock(1)(1,356)

Cash dividends paid

(795)

(685)

Cash dividends paid to non-controlling shareholders

(102)

(385)

411

－

(33)

－

Others82

1,180

Net cash provided by (used in) financing activities

71(1,357)

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

(382)

(58)

Net increase (decrease) in cash and cash equivalents

1,860

(101)

Cash and cash equivalents at beginning of period

11,965*1

Cash and cash equivalents at end of period

18

13,826

13,826*1

13,724

(5) Notes concerning 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, as of the end of consolidated fiscal year under review, treasury shares
increased by 1,356 million yen and as of the end of the consolidated fiscal year under review, 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 theconsolidated fiscal year under review.
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 consolidated fiscal year under review, lease assets increased by 471 million yen, leaseobligations of current liabilities increased by 109 million yen, and lease obligations of noncurrent liabilities
increased by 371 million yen. The effect on profit and loss in the consolidated fiscal year under review isnegligible.

19

(Basis for preparation of consolidated financial statements)
1. Scope of consolidation(1) Number of consolidated subsidiaries: 18
Names of the main consolidated subsidiaries:
Names of the consolidated subsidiaries are omitted as they are listed in “2. Overview of the T.RAD
Group (2) Subsidiaries and Affiliates”
2. Application of equity method(1) Number of equity method affiliates: 2
Names of main companies:
TORC Co., Ltd.
Tata Toyo Radiator Ltd.
(2) Of the companies accounted for by the equity method, for those that have a closing date that differsfrom the consolidated closing date, the financial statements for each such company’s financial year areused.
3. Fiscal years of consolidated subsidiaries
The book-closing date of fourteen overseas companies out of the consolidated companies and T.RAD
CONNECT Co., Ltd. is December 31.
In preparing the consolidated financial statements, the financial statements as of the dates stated above
were used. With regard to important transactions that occurred between each company’s closing date andthe consolidated closing date, necessary adjustments for consolidation were made.
Three of our consolidated subsidiaries, i.e., Asuni Co., Ltd., Towa Unyu Co., Ltd., and Towa Kosan Co.,
Ltd., have the same settlement date that coincides with March 31 of the consolidated fiscal year.
4. Accounting standard(1) Valuation basis and method for important assets
i. Securities
Other securities
Securities with fair market values:
Stated at the market value as of the balance sheet date, based on quoted market prices, etc. (anyvaluation differences are included in net assets in full, and the cost of securities sold isdetermined by the gross average method.);
Securities without fair market values:
Stated at cost determined by the gross average method.
ii. Derivatives
Derivative is evaluated by quoted market prices.
iii. Inventories
Stated at cost by the gross average method, in principle (for figures shown on the balance sheet,values are written down to their book values based on their decreased profitability).
In addition, overseas consolidated subsidiaries mainly adopt the lower-of-cost-or-market method
based on the first-in first-out method.
(2) Depreciation method for important depreciable assets
i. Tangible fixed assets (excluding lease assets)
Depreciation of Tangible fixed assets is calculated mainly by the declining-balance method. The
approximate useful life of assets is as follows:
Buildings and structures:
3–60 years
Machinery, equipment and vehicles:
2–17 years
Assets with an acquisition cost from ¥100,000 to less than ¥200,000 are depreciated by thestraight-line method over three years based on the provisions of the Corporation Tax Act.
At overseas consolidated subsidiaries, depreciation is calculated principally by the straight-line
method.
ii. Intangible assets (excluding lease assets)
At the Company and consolidated subsidiaries, the amortization of intangible assets is computed by
the straight-line method. Software for internal use is amortized by the straight-line method over theestimated internal useful life (five years).
20

iii. Lease assets
Lease assets are amortized by the straight-line method, assuming the lease period as the useful lifeand no residual value.
(3) Recognition of important allowancesi. Allowance for doubtful accounts
The allowance for doubtful accounts is provided at an amount determined based on a reasonable
standard such as the historical experience of bad debt for ordinary accounts. For specific accounts
such as doubtful accounts receivable, the collectability is determined individually, and the estimateduncollectible amount is recorded.
ii. Provision for bonuses
To appropriate funds for the payment of bonuses to employees, Provision for bonuses is provided at
an estimated amount to be paid.
iii. Provision for directors’ bonuses
Provision for directors’ bonuses is provided at an estimated amount to accrue for the fiscal year
ended March 31, 2020.
iv. Provision for product warranty
To provide for potential expenses related to the after-the-sale service of products, the Company
allots an estimated amount based upon past performance.
v. Provision for shareholders benefit program
In order to prepare for the expenditure accompanying shareholders benefit program, we are posting
forecasted amount of occurrence based on the rate of past use results etc.
vi. Provision for directors’ retirement benefits
Some of the consolidated subsidiaries provide the provision for directors’ retirement benefits at an
amount deemed necessary to cover the total amount to be paid mainly pursuant to the internal
regulations thereof at the end of the fiscal year-end.
vii. Provision for loss on order received
To prepare for future loss related to contracts for orders received, we estimated the amount of loss
related to orders for contracts at the end of the consolidated fiscal year under review.
(4) Accounting method for defined benefit plansi. Method of attributing expected defined benefit plans
In calculating its defined benefit plans obligation, the Company applies the point basis as its methodof attributing the expected defined benefit plans to the periods until the end of the consolidated
fiscal year under review.
ii. Amortizing method for actuarial gains or losses and prior service costs
Prior service cost is amortized using the straight-line method over a certain length of period equal toor less than the average remaining service period for employees at the time such gains or losses are
realized (maximum 15 years).
The actuarial gains or losses realized in each accounting period for the said allowance is amortizedby the straight-line method over a certain length of period equal to or less than the averageremaining service period for employees at the time such gains or losses are realized (maximum 15
years).
iii. Treatment for unrecognized actuarial gains or losses and unrecognized prior service costs
Actuarial gains or losses and prior service costs that are yet to be recognized in profit or loss arerecognized within net assets as remeasurements of defined benefit plans under accumulated othercomprehensive income, after adjusting for tax effects.
(5) Significant hedge accounting methods
i. Hedge accounting methods
Deferred hedge accounting treatment is used. With regard to the parent company, designated hedge
accounting treatment is used for foreign currency-denominated monetary claims to which forward
foreign exchange contracts have been applied. Exceptional accounting is used for interest-rate swap
agreements which conform to the special regulated terms.
ii. Hedging method and scope
Hedging method : Forward foreign exchange
Scope of hedging : Foreign currency-denominated accounts receivable
Hedging method : Interest-rate swap agreement
Scope of hedging : loans payable21

iii. Hedging policy
Primarily, the parent company enters into forward foreign exchange transactions for the purpose of
reducing the risk from market price fluctuations on foreign currency-denominated transactions.
In addition, interest rate swap agreements are used to reduce the risk from interest rate fluctuationsof loans.
iv. Method for evaluating the effectiveness of hedges
For forward foreign exchange transactions, confirmations are made that the currencies, value dates,
and amounts are identical. Interest swap agreements conforming to the special regulated terms areomitted to evaluate their effectiveness.
(6) Amortization of goodwill
As for the amortization of goodwill, we reasonably estimated the period during which the effect isrealized and made equal amortization over the period.
(7) Scope of cash and cash equivalents in the consolidated statements of cash flows
Cash and cash equivalents consist of cash on hand, cash in banks that can be withdrawn at any time andshort-term investments with a maturity of three months or less from purchasing date that can be easily
converted to cash and are subject to little risk of change in value.
(8) Other important matters for the preparation of consolidated financial statements
i. Accounting treatment of consumption taxes, etc.
The tax excluded method is adopted in accounting treatment of consumption taxes, etc.
ii. Application of consolidated tax payment system
Company and consolidated domestic subsidiaries applying consolidated tax payment system.

22

(Consolidated balance sheets)*1 Those for non-consolidated subsidiaries and affiliates are as follows:
FY2018(As of March 31, 2019)
Investment securities:

FY2019(As of March 31, 2020)¥2,240 million¥2,154 million

FY2018(As of March 31, 2019)

FY2019(As of March 31, 2020)*2 Pledged Assets and collateralized liabilities:
The following assets were pledged as collateral:

Cash and deposits:¥283 million¥179 million

The following liabilities were collateralized by the above assets:
FY2018(As of March 31, 2019)
Notes payable-trade:¥283 million

FY2019(As of March 31, 2020)¥179 million*3 Notes maturing at date of consolidated fiscal year-end, electronically recorded monetary claims and electronicallyrecorded obligations
Accounting method regarding notes maturing at date of consolidated fiscal year-end, electronically recorded monetaryclaims and electronically recorded obligations, these are settled on the date of clearance. As the closing date of previous
fiscal year was a bank holiday, notes maturing at date of consolidated fiscal year-end, electronically recorded monetaryclaims and electronically recorded obligations are included in the balance of previous consolidated fiscal year-end, as
follows:
FY2018(As of March 31, 2019)
Notes receivable-trade:
Electronically recorded monetary claims-operating
Electronically recorded obligations – operating
Electronically recorded obligations - non-operating¥27 million¥240 million¥1,295 million¥180 million

23

FY2019(As of March 31, 2020)――――

(Consolidated statements of income)#1 Research and development expenses included in general expenses and cost of sales:
FY2018FY2019(April 1, 2018–March 31, 2019)(April 1, 2019–March 31, 2020)¥3,049 million¥2,864 million#2 Gain on sales of noncurrent assets are as follows:
FY2018(April 1, 2018–March 31, 2019)
Buildings and structures:¥0 million
Machinery, equipment and vehicles:¥27 millionLand:¥122 million
Construction in progress:¥0 million
Other :
¥19 million
Total¥171 million#3 Loss on retirement of noncurrent assets are as follows:
FY2018(April 1, 2018–March 31, 2019)
Buildings and structures:¥27 million
Machinery, equipment and vehicles:¥43 million
Software¥5 million
Construction in progress:¥7 million
Intangible assets and other― million
Other:¥7 million
Total¥90 million

FY2019(April 1, 2019–March 31, 2020)―¥25 million¥13 million―¥35 million¥74 million
FY2019(April 1, 2019–March 31, 2020)¥28 million¥85 million¥127 million― million¥0 million¥8 million¥251 million#4 Loss on sales of noncurrent assets are as follows:

Machinery, equipment and vehicles:
Other:Total

FY2018(April 1, 2018–March 31, 2019)¥91 million¥8 million¥99 million

24

FY2019(April 1, 2019–March 31, 2020)¥12 million¥0 million¥12 million

#5 Impairment Loss:
Impairment losses were recorded in the following asset groups of the Group:
FY2018 (April 1, 2018–March 31, 2019)
Place
Type
Impairment loss
Purpose of use
T.RAD Czech s.r.o
Manufacture and sales of
Machinery, equipment and vehicles¥1,226 million
Unhost, Czech
heat exchangers
Qingdao Toyo Heat
Manufacture and sales ofGoodwill¥192 million
Exchanger Co., Ltd.
heat exchangers
Qingdao, Shandong, China
Total¥1,418 million
The asset groups are classified on the base of managerial accounting in consideration of company category and businesscategory.
As a result of accounting for the impairment of assets based on the aforementioned grouping, regarding aforementioned
tangible fixed assets were no longer 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 amount listed as recoverable value by each asset group was calculated in accordance with the asset’s value in usage.
In T.RAD Czech s.r.o, the calculation reflects a 10% discount in future cash flow.
As to goodwill, in our consolidated subsidiary Qingdao Toyo Heat Exchanger Co., Ltd., unamortized balance of goodwill 192
million yen is posted as an impairment loss since the part of our holding share was sold and estimated profits at the time ofacquiring its shares are no longer expected.
FY2019 (April 1, 2019–March 31, 2020)
Place
Purpose of use
The Company,
Technical Division
Idle assets
Nagoya, Aichi, Japan,

Type

Building and other

Impairment loss
¥1 million

Machinery, equipment and vehicles¥41 million
Tools, furniture and fixtures¥59 million
Subtotal¥101 million
Total¥102 million
The asset groups are classified on the base of managerial accounting in consideration of company category and businesscategory.
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, regarding aforementioned tangible fixed assets were no longer expected torecover the investment amount due to the decrease in profitability. Accordingly, their book values were written down torecoverable values, and the Company posted those losses as an impairment loss under extraordinary loss.
T.RAD Czech s.r.o
Unhost, Czech

Manufacture and sales ofheat exchangers

The amount listed as recoverable value by each asset group was calculated in accordance with the asset’s value in usage.
In T.RAD Czech s.r.o, the calculation reflects a 10% discount in future cash flow.
#6 Surcharges are as follows:

Research-related expenses :FY2018(April 1, 2018–March 31, 2019)¥292 million

FY2019(April 1, 2019–March 31, 2020)¥24 million

In connection with sales of automotive parts (radiators and other components), investigations related to antitrust laws by
judicial authorities and lawsuit etc. related to the same laws are underway, in the consolidated fiscal year under review
and previous consolidated fiscal year, we posted the costs related to the investigations and settlement to someclients as an extraordinary loss.

25

#7 Inventories at the close of the fiscal year-end, are the amounts after it write-down of the book value as a result of adecrease in profitability. The following loss (gain) on valuation of inventories is included in cost of sales:
FY2018FY2019(April 1, 2018–March 31, 2019)(April 1, 2019–March 31, 2020)¥115 million¥(29) million

26

(Consolidated statement of changes in net assets)
Fiscal year ended March 31, 2019 (April 1, 2018 to March 31, 2019)
1. Type and number of shares issued and treasury shares(Thousands of shares)
Number of shares at
Number of shares
Number of shares
Number of shares at
beginning of theincreased in thedecreased in theend of the current
current fiscal year
current fiscal year
current fiscal year
fiscal year
Shares issued
Common stock
8,344
8,344
―
―
Total
8,344
8,344
―
―
Treasury shares
Common stock *1
384
0
384
―
Total
384
0
384
―
Note: 1. The number of common stocks of treasury shares increased 0 thousand shares due to a repurchase of fractional
shares.
2. Subscription rights to shares and own subscription rights to shares
Not applicable
3. Cash dividends(1) Cash dividends paid
Resolution
June 27, 2018
Ordinary General
Meeting of Shareholders
November 5, 2018
Board of Directors

Type ofsharesCash dividends Cash dividends(Millions of yen) per share (Yen)Record date

Effective dateCommon
stock

477

60

March 31, 2018

June 28, 2018

Common
stock

318

40

September 30, 2018

December 1, 2018

(2) Cash dividends with record dates falling in the fiscal year ended March 31, 2019 and effective dates coming
after the end of the fiscal year
Cash
Cash
Type ofResource ofResolution
dividends per Record date Effective datedividends
sharesdividends(Millions of yen)share (Yen)
June 26, 2019
CommonRetained
March 31,
June 27,
Ordinary General
397
50
stock
earnings
2019
2019
Meeting of Shareholders

27

Fiscal year ended March 31, 2020 (April 1, 2019 to March 31, 2020)
1. Type and number of shares issued and treasury shares(Thousands of shares)
Number of shares at
Number of shares
Number of shares
Number of shares at
beginning of theincreased in thedecreased in theend of the current
current fiscal year
current fiscal year
current fiscal year
fiscal year
Shares issued
Common stock
8,344
8,344
―
―
Total
8,344
8,344
―
―
Treasury shares
Common stock *1
384
760
1,145
―
Total
384
760
1,145
―
Note: 1. The number of common stocks of treasury shares increased 760 thousand shares. 759 thousand shares
increased due to purchase of treasury stock by resolution of board of directors and 0 thousand shares increased
due to a repurchase of fractional shares.
We acquired 373,500 treasury shares based on a resolution at the meeting of the board of directors held on
June 18, 2019, we acquired 282,800 treasury shares based on a resolution at the meeting of the board of
directors held on August 2, 2019, and we acquired 103,500 treasury shares based on a resolution at the meetingof the board of directors held on August 22, 2019. As a result, as of the end of consolidated fiscal year underreview, treasury shares increased by 1,356 million yen and as of the end of the consolidated fiscal year underreview, treasury shares resulted in 2,257 million yen.
2. Subscription rights to shares and own subscription rights to shares
Not applicable
3. Cash dividends(1) Cash dividends paid
Resolution
June 26, 2019
Ordinary General
Meeting of Shareholders
November 5, 2019
Board of Directors

Type ofsharesCash dividends Cash dividends(Millions of yen) per share (Yen)Record date

Effective dateCommon
stock

397

50

March 31, 2019

June 27, 2019

Common
stock

287

40

September 30, 2019

November 29,
2019(2) Cash dividends with record dates falling in the fiscal year ended March 31, 2020 and effective dates coming
after the end of the fiscal year
Cash
Cash
Type ofResource ofResolution
dividends per Record date Effective datedividends
sharesdividends(Millions of yen)share (Yen)
June 25, 2020
CommonRetained
March 31,
June 26,
Ordinary General
359
50
stock
earnings
2020
2020
Meeting of Shareholders

28

(Notes to consolidated statement of cash flows)*1 The relationship between cash and cash equivalents at the fiscal year-end and the amount of account title stated on
the consolidated balance sheets:
FY2018FY2019(April 1, 2018–March 31, 2019)(April 1, 2019–March 31, 2020)
Cash and deposits:¥13,894 million¥13,419 million
Securities:¥399 million¥499 million
Time deposits with a maturity of¥(467) million¥(194) million
3 months or more at date of purchase:
Cash and cash equivalents:¥13,826 million¥13,724 million(Additional information)
The spread of novel coronavirus infection has a wide-ranging impact on the economy and corporate activities, andautomobile manufacturers, which are our main customers, are adjusting their operations. However, it is difficult at
this point to reasonably predict the impact they will have on the Group and the time when this infectious disease
will converge. Therefore, we have made an accounting estimate for the current consolidated fiscal year that ended
in March 31, 2020 on the assumption based on external sources that the impact of this infectious disease willcontinue for a certain period of the consolidated fiscal year ending in March 31, 2021.
(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 madeconcerning the segments’ 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, Russia and Germany), Asia (Thailand, Indonesia andVietnam) 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
five reportable segments.
In each reportable segment, heat exchangers for automobiles, construction, industrial machinery and air
conditioners 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.

29

3. Net sales, profit (loss), assets and other items by reportable segments
Fiscal year ended March 31, 2019(from April 1, 2018 to March 31, 2019)(Millions of yen)
Reportable segment
Other
Total
UnitedJapan
Europe
Asia
China
Total
StatesNet Sales:
Sales to outside customers
60,901
31,394
3,707
18,547
20,633
135,183
941
136,125
Intersegment sales or
5,893
177
479
74
1,851
8,476
3,347
11,824transfers
Total
66,794
31,571
4,186
18,621
22,484
143,660
4,289
147,949
Segment income (loss)
660
(325)
(1,298)
2,682
2,807
4,525
178
4,703
Segment assets
61,407
17,234
2,856
9,579
17,574
108,652
2,443
111,096
Other items
Depreciation
3,319
1,167
275
961
607
6,330
111
6,441
Investment amount in
―
―
―
―
531
531
―
531
equity-method affiliate
Increase of tangible fixed
assets and intangible
4,175
933
285
894
292
6,581
143
6,724
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, 2020(from April 1, 2019 to March 31, 2020)(Millions of yen)
Reportable segment
Other
Total
UnitesJapan
Europe
Asia
China
Total
StatesNet Sales:
Sales to outside customers
56,63931,0402,928
17,73921,211
129,559964
130,524
Intersegment sales or
6,844
145
405
66
1,677
9,139
3,184
12,324transfers
Total
63,484
31,186
3,333
17,80622,888
138,699
4,149
142,848
Segment income (loss)
(603)
(892)
(1,017)
2,176
2,769
2,432
117
2,550
Segment assets
57,77917,0162,969
9,785
18,352
105,903
2,371
108,275
Other items
Depreciation
3,220
1210
144
971
677
6,225
112
6,338
Investment amount in
531
―
―
―
―
531
―
531
equity-method affiliate
Increase of tangible fixed
assets and intangible
3,693
1,377
588
893
830
7,382
81
7,463
assetsNote: “Other” comprises business operations that are not categorized as reportable segments and includes the businessactivities of domestic subsidiaries, such as the transportation business.

30

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)
FY2018Net sales
Total of reportable segments

FY2019143,660

138,699

Net sales of the classification “Others”

4,289

4,149

Elimination of trades among segments(11,824)(12,324)

Net sales in the consolidated financial statements

136,125

130,524(Millions of yen)

FY2018

Profit

FY2019Total of reportable segments

4,525

2,432

Profit of the classification “Others”

178

117

Elimination of trades among segments

388

293

Operating income in the consolidated financial statements

5,092

2,843
(Millions of yen)

FY2018AssetsTotal of reportable segments

FY2019108,652

105,903

2,443

2,371

(18,167)(19,781)

92,92988,493

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

Other items

Depreciation

Total of reportablesegments

Other

Posted amounts in the
consolidated financial
statements

Adjustments

FY2018FY2019FY2018FY2019FY2018FY2019FY2018FY2019

6,330

6,225

111

112

(102)

(97)

6,339

6,240

Investment amount to
531
531
－
－
1,709
1,623
2,240
2,154
equity-method affiliate
Increase of tangible fixed
6,581
7,382
143
81
7,310
7,481
585
17
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 onequity 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: 21 million yen
Other consolidated adjustment among segments: (3) million yen

31

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

FY2018FY2019(April 1, 2018 to March 31, 2019) (April 1, 2019 to March 31, 2020)

Amount%Amount%Increase/Decrease
Amount%For Automobile

97,771

71.8

98,377

75.4

605

0.6

For construction &industrial machine

30,342

22.3

26,14720.0-4,195-13.8

For Air conditioner

4,602

3.4

3,158

2.4

-1,444

-31.4

Other

3,408

2.5

2,841

2.2

-567

-16.6

136,125100.0
130,524
Total
Notes: Amounts less than one million yen have been truncated.

100.0-5,600-4.1

32

(Per share information)
FY2018FY2019(April 1, 2018–March 31, 2019)(April 1, 2019–March 31, 2020)
Net assets per share:¥5,537.37¥5,916.09
Net income per share:¥218.01¥194.28(Note) 1. Diluted net income per share is not listed for the consolidated fiscal year under review, as there are no potential
shares that have dilutive effects on per-share net income.
2. Basis for calculation of net income per share as follows.
FY2018FY2019(April 1, 2018–March 31, 2019)(April 1, 2019–March 31, 2020)
Net income per share
Profit attributable toowners of parent
1,735
1,435
(Millions of yen)
Net income that is not attributable toshares of common stock——(Millions of yen)
Net income attributable to shares ofcommon stock
1,735
1,435
(Millions of yen)
Average number of shares ofcommon stock during the period
7,959
7,390
(Thousands)(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.

33

5. Non-Consolidated Financial Statements(1) Non-consolidated balance sheets(Millions of yen)
FY2019FY2018
As of March 31, 2019

As of March 31, 2020

AmountAmount(Assets)
Current assets
4,045

Cash and deposits

4,248

Notes receivable-trade

197

113

Electronically recorded monetary claims-operating

2,589

3,873

Accounts receivable-trade

13,903

11,873

Short-term investment securities

399

499

Merchandise and finished goods

1,369

1,729

Work in process

1,117

1,249

Raw materials and supplies

655

601

Prepaid expenses

105

125

Short-term loans receivable from subsidiaries and affiliates

200－

Accounts receivable-other

2,138

2,131

2

2

Other current assets
Allowance for doubtful accounts
Total current assets

(0)

(0)

26,72426,450Noncurrent assets
Tangible Fixed Assets
Buildings

11,876

12,314

Accumulated depreciation(9,305)(9,501)

Buildings, net

2,570

2,813

Structures

1,462

1,489

Accumulated depreciation(1,225)(1,257)237

232

Structures, net
Machinery and equipment

24,46825,813

Accumulated depreciation(18,233)(18,972)

Machinery and equipment, net

6,234

6,841

Vehicles121

128

Accumulated depreciation

(104)

(104)

16

24

Tools, furniture and fixtures

23,61924,518

Accumulated depreciation(22,552)(23,392)

Tools, furniture and fixtures, net

1,066

1,126

Land

1,228

1,251

Lease assets

63

48

Accumulated depreciation

(52)

(44)

Lease assets, net

103Construction in progress

1,370

895

2

0

12,737

13,189Software651

677

Other intangible assets

121

68

Total intangible assets

772

746

Vehicles, net

Other, net
Total Tangible Fixed Assets
Intangible assets

34

(Millions of yen)
FY2019FY2018
As of March 31, 2019

As of March 31, 2020

AmountAmountInvestments and other assets
Investment securities

5,408

31

Stocks of subsidiaries and affiliates

6,517

7,603

Investments in capital of subsidiaries and affiliates

6,121

7,636

Long-term prepaid expenses

18

15

Insurance funds

49

49

Deferred tax assets

247

406

Others929

217

Allowance for doubtful accounts

(19)

(13)

Allowance for investment loss

(227)

－

Total investments and other assets

19,045

15,946

Total noncurrent assets

32,55529,882

Total assets

59,28056,332

Electronically recorded obligations – operating

5,340

3,414

Accounts payable-trade

6,796

5,722

Short-term loans payable

1,642

217

Lease obligations

396

360

Accounts payable-other

801

409

Income taxes payable

145

354

(Liabilities)
Current liabilities

75

95

Accrued expenses

1,473

1,313

Advances received

93

384

Accrued consumption taxes

Deposits received

160

67

Provision for bonuses

1,358

1,250

Provision for directors’ bonuses

84

43

Provision for product warranties

29

28

Provision for shareholders benefit program

48

39

Electronically recorded obligations - non-operating

729

384

Asset retirement obligations

116

200

Others233

4

19,527

14,292Long-term loans payable

7,362

9,745

Lease obligations

743

422

Provision for retirement benefits

464

460

Asset retirement obligations

63

63

Total current liabilities
Noncurrent liabilities

OthersTotal noncurrent liabilities
Total liabilities

35

20

20

8,654

10,712

28,181

25,004

(Millions of yen)
FY2019FY2018
As of March 31, 2019

As of March 31, 2020

AmountAmount(Net assets）
Shareholders’ equity
8,545

8,545

Legal capital surplus

7,306

7,306

Other capital surplus

167

167

Total capital surplus

7,473

7,473

1,097

1,097

Reserve for dividends

500

500

Reserve for special account for advanced depreciation of noncurrent assets

101

98

General reserve

8,130

8,130

Retained earnings brought forward

5,694

7,746

Total retained earnings

15,523

17,573

Treasury stock(901)(2,257)

Total shareholders’ equity

30,642

31,334

Valuation difference on available-for-sale securities

456

(6)

Total valuation and translation adjustments

456

(6)

Total net assets

31,09831,328

Total liabilities and net assets

59,28056,332

Capital stock
Capital surplus

Retained earnings
Legal retained earnings
Other retained earnings

Valuation and translation adjustments36

(2) Non-consolidated statements of income(Millions of yen)
FY2019FY2018Net sales(Apr. 1, 2018–Mar. 31, 2019)(Apr. 1, 2019–Mar. 31, 2020)

AmountAmount
66,794

63,484

Beginning finished goods

1,047

1,248

Cost of products manufactured

Cost of sales
54,08752,558Purchase of finished goods

838

702

Transfer from other account

3,940

3,719

Total

59,91458,228Finished goods transfer to other account

234

166

Ending finished goods

1,248

1,616

Cost of finished goods sold58,431

56,445Gross profit

8,363

7,038

2,506

2,438

Advertising expenses

43

42

Provision for product warranties

23

12

Directors' compensations

186

199

Salaries and allowances

1,005

1,128

Provision for bonuses

301

299

Provision for directors’ bonuses

84

42

Provision for retirement benefits

53

73

Welfare expenses

421

489

Depreciation

185

232

Repair expenses

102

101

Taxes and dues

80

161

Rent expenses

210

253

Transportation and communication expenses

414

415

Research and development expenses

1,576

1,266

Selling, general and administrative expenses
Packing and delivery expenses

Insurance expenses

24

21

Provision of allowance for doubtful accounts

(0)

(0)

Stationery expenses

30

28Entertainment expenses

55

49

Provision for shareholders benefit program

22

29

Commission Fee

311

291

Miscellaneous expenses

65

64

Total selling, general and administrative expense

7,704

7,641

Operating income (loss)

658

(602)

Interest income

63Interest on securities

0

0

2,787

3,528

9

－

Others103

72

Total non-operating income

2,907

3,605

Non-operating income

Dividends income
Foreign exchange gains

37

(Millions of yen)
FY2019FY2018(Apr. 1, 2018–Mar. 31, 2019)(Apr. 1, 2019–Mar. 31, 2020)

AmountAmountNon-operating expenses
Interest expenses

39

43

Foreign exchange losses－

109

Others52

Total non-operating expenses

44

155

3,522

2,847

Ordinary income
Extraordinary income
Gain on sales of noncurrent assets

550Gain on sales of investment securities

234

1,498

Reversal of allowance for investment loss

112

227

Total extraordinary income

352

1,775

Loss on retirement of noncurrent assets

65

241

Impairment loss－

1

Loss on sales of investment securities

－

382

2,448

481

Extraordinary Loss

Loss on valuation of investments in capital of subsidiaries and affiliates
Provision of allowance for doubtful accounts of golf club membership

11

0Surcharges

292

24

Total extraordinary loss

2,817

1,132

Income before income taxes

1,056

3,491

Income taxes-current

290

713

Income taxes-deferred

205

41

Total income taxes

495

755

Net income(loss)

560

2,735

38

(3) Non-consolidated statements of changes in net assets
Fiscal year ended March 31, 2019 (April 1, 2018 to March 31, 2019)(Millions of yen)
Shareholders’ Equity
Capital Surplus

Capital
stock

Legal
capitalsurplus

OthercapitalsurplusTotal
capitalsurplusLegalretainedearnings

8,545

7,306

167

7,473

1,097

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

5,927

15,7593－

Dividends from surplus

(795)

(795)

Net income

560

560

As of April 1, 2018

Reservefordividends

500

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

104

8,130

(3)

Purchase of treasury stock
Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
As of March 31, 2019

―

―

―

―

―

―

(3)

―

(232)

(235)

8,545

7,306

167

7,473

1,097

500

101

8,130

5,694

15,523(Millions of yen)
Shareholders’ Equity

As of April 1, 2018

Treasury
stock

Total
Shareholders’equityValuation difference on
available-for-sale securities(899)

30,8791,047

Changes of items during
the period
Reversal of reserve foradvanced depreciation of
non-current assets
Dividends from surplus
Net income
Purchase of treasury stock
Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
As of March 31, 2019

Valuation and translation adjustments(1)

Total valuation andtranslation adjustments
1,047

Total net assets
31,926

―

―

(795)

(795)

560

560

(1)

(1)
(591)

(591)

(591)

(1)

(236)

(591)

(591)

(828)

(901)

30,642456

456

31,09839

Fiscal year ended March 31, 2020 (April 1, 2019 to March 31, 2020)(Millions of yen)
Shareholders’ Equity
Capital Surplus

As of April 1, 2019

Capital
stock

Legal
capitalsurplus

OthercapitalsurplusTotal
capitalsurplusLegalretainedearnings

8,545

7,306

167

7,473

1,097

Reservefordividends

Retained Earnings
Other retained earnings
Reserve foradvanced
Generaldepreciation ofreserve
non-current
assets500

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

101

8,130

Retainedearnings
brought
forwardTotal
retainedearnings

5,694

15,523(2)

2

Dividends from surplus

(685)

(685)

Net income

2,735

2,735

Purchase of treasury stock
Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
As of March 31, 2020

―

―

―

―

―

―

(2)

―

2,052

2,049

8,545

7,306

167

7,473

1,097

500

98

8,130

7,746

17,573(Millions of yen)
Shareholders’ Equity

As of April 1, 2019

Valuation and translation adjustments

Treasury
stock

Total
Shareholders’equityValuation difference on
available-for-sale securities(901)

30,642456

Total valuation andtranslation adjustments
456

Total net assets
31,098Changes of items during
the period
Reversal of reserve foradvanced depreciation of
non-current assets
Dividends from surplus(685)

Net income
Purchase of treasury stock
Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
As of March 31, 2020

(1,356)

(685)

2,735

2,735

(1,356)(1,356)
(462)

(462)

(462)

(1,356)

692

(462)

(462)

230

(2,257)31,334(6)(6)

31,32840

(4) Notes concerning non-consolidated financial statement(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, as of the end of consolidated fiscal year under review, treasury shares
increased by 1,356 million yen and as of the end of the consolidated fiscal year under review, treasury shares
resulted in 2,257 million yen.
(Additional information)
The spread of novel coronavirus infection has a wide-ranging impact on the economy and corporate activities, andautomobile manufacturers, which are our main customers, are adjusting their operations. However, it is difficult at
this point to reasonably predict the impact they will have on the Group and the time when this infectious disease
will converge. Therefore, we have made an accounting estimate for the current consolidated fiscal year that ended
in March 31, 2020 on the assumption based on external sources that the impact of this infectious disease willcontinue for a certain period of the consolidated fiscal year ending in March 31, 2021.

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