Consolidated Financial Results for the Fiscal Year Ended March 31, 2022(J-GAAP)May 16, 2022
Company name: T.RAD Co., Ltd.
Listing: Tokyo Stock Exchange, Prime Market
Code No.:
7236
URL: http://www.trad.co.jp
Representative: Tomio Miyazaki, President & COO
Contact:
Norio Kanai, Managing Director & CFO
Tel:+81-3-3373-1101
Scheduled date of the Ordinary General Meeting of Shareholders: June 28, 2022
Scheduled date of filing of securities report:
June 28, 2022
Scheduled date of start of dividend payments:
June 29, 2022
Supplemental materials prepared for consolidated financial results: None
Briefing on consolidated financial results: Yes(Amounts less than one million yen have been truncated)

1. Consolidated Financial Performance for the Fiscal Year Ended March 31, 2022
(April 1, 2021 to March 31, 2022)(1) Consolidated operating performance(Percentage figures indicate year-on-year change)
Net sales

Operating income

Millions of yen% Millions of yen

Ordinary income% Millions of yen

Fiscal year ended
133,58118.2
5,041 298.7
March 31, 2022
Fiscal year ended
113,046 -13.4
1,264 -55.5
March 31, 2021
Note: Comprehensive income
Fiscal year ended March 31, 2022: ¥ 6,163 million (―%)
Fiscal year ended March 31, 2021: ¥ －954 million (―%)
Net income per
share

Profit attributable toowners of parent% Millions of yen
%

5,997

289.4

3,600

―

1,540

-46.6

(1,239)―Diluted net
Ordinary income Operating income
Return on
income per share shareholders’ equity
to total assets
to net sales

Yen

Yen

Fiscal year ended
515.97―
March 31, 2022
Fiscal year ended(171.62)―
March 31, 2021
Reference: Equity earnings (losses) of affiliates
Fiscal year ended March 31, 2022: ¥435 million
Fiscal year ended March 31, 2021: ¥ －142 million(2) Consolidated financial position
Total assets
Millions of yen

Net assets

%

%

%

8.4

6.6

3.8

-3.0

1.8

1.1

Equity ratio

Net assets per share

Millions of yen%

Yen

46,73247.5

6,810.22

43,21847.3

5,673.72(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

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

13,404

7,475(5,840)(588)

14,614

Fiscal year ended
93,756
March 31, 2022
Fiscal year ended
86,800March 31, 2021
Reference: Shareholders’ equity
As of March 31, 2022: ¥44,504 million
As of March 31, 2021: ¥41,048 million

Fiscal year ended
March 31, 2022
Fiscal year ended
March 31, 2021

1

2. Dividends
Dividends per Share
Year2Q
3Q
End

1Q

Fiscal year ended
March 31, 2021
Fiscal year ended
March 31, 2022
Fiscal year ending
March 31, 2023
(Forecast)

Total

Total Dividends
Paid (Annual)(Consolidated)

Dividends per
Net Assets

Payout Ratio(Consolidated)

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

―

0.00

―

0.00

0.00

―

―

―

―

40.00

―

120.00 160.00

1,065

31.0

2.4

―

80.00

―

80.00 160.00

69.7

3. Forecast of Consolidated Financial Performance for the Fiscal Year Ending March 31, 2023
(April 1, 2022 to March 31, 2023)(Percentage figures indicate changes from the same period of the previous year)
Net
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
75,00014.4
1,400 -59.0
1,700
-51.2
200 -89.3
30.60
September 30, 2022
Fiscal year ending
158,400
18.6
4,200 -16.7
4,600
-23.3
1,500 -58.3
229.54
March 31, 2023
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
(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, 2022: 6,712,411 shares
As of March 31, 2021: 8,380,711 shares
2) Number of shares of treasury stock at end of period
As of March 31, 2022: 177,519 shares
As of March 31, 2021: 1,145,779 shares
3) Average number of shares outstanding during the period
Fiscal year ended March 31, 2022: 6,978,068 sharesFiscal year ended March 31, 2021: 7,223,025 shares

2

(Reference) Summary of Non-consolidated Financial Performance
1. Non-consolidated Financial Performance for Fiscal Year Ended March 31, 2022
(April 1, 2021 to March 31, 2022)(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, 2022
Fiscal year ended
March 31, 2021

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

68,308

21.4

1,473

―

5,496

87.3

3,901

―

56,278-11.4(515) -14.5

2,934

3.0

(679) -124.8

Net income per share
Fiscal year ended
March 31, 2022
Fiscal year ended
March 31, 2021

Diluted net
income per share

Yen

Yen

559.11―(94.10)―(2) Non-consolidated Financial Position
Total assets
Millions of yen

Net assets

Equity ratio

Net assets per share

Millions of yen%

Yen

31,85454.4

4,874.54

30,34455.5

4,194.13

Fiscal year ended
58,587
March 31, 2022
Fiscal year ended
54,645
March 31, 2021
Reference: Shareholders’ equity
As of March 31, 2022: ¥31,854 million
As of March 31, 2021: ¥30,344 million

2. Forecast of Non-Consolidated Financial Performance for the Fiscal Year Ending March 31, 2023
(April 1, 2022 to March 31, 2023)(Percentage figures indicate changes from the same period of the previous year)Net
Net sales
Operating income
Ordinary income
Net income
income pershare
Millions ofMillions ofMillions ofMillions of
%
%
%
%
Yen
yen
yen
yen
yen
2nd Quarter ending
37,00015.4
900 520.7
2,500
29.7
1,800
-6.7
275.44September 30, 2022
Fiscal year ending
77,000
12.7
1,800
22.2
4,900
-10.8
3,800
-2.6
581.49March 31, 2023
* 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, 2022 ························· 5(1) General overview of financial performance ·········································································· 5(2) General overview of Consolidated financial position······························································· 6
2. Basic Concept Behind the Selection of Accounting Standards ························································· 7
3. Consolidated Financial Statements and main notes ······································································ 8(1) Consolidated balance sheets ···························································································· 8(2) Consolidated statements of income and consolidated statement of comprehensive income ················ 10(Consolidated statements of income) ·············································································· 10(Consolidated statement of comprehensive income) ···························································· 12(3) Consolidated statements of changes in net assets ································································· 13(4) Consolidated statements of cash flows ·············································································· 15(5) Notes concerning consolidated financial statement ······························································· 17(Going concern assumptions) ························································································ 17(Changes of accounting policy) ······················································································ 17(Consolidated statements of income)················································································ 18(Additional information) ······························································································ 19(Segment information) ································································································ 19(Supplementary information) ························································································· 22(Per share information) ································································································ 23(Omitted disclosure) ··································································································· 23(Significant subsequent events) ······················································································ 23
4. Non-Consolidated Financial Statements and main notes ······························································ 24(1) Non-consolidated balance sheets ···················································································· 24(2) Non-consolidated statements of income ············································································ 27(3) Non-consolidated statements of changes in net assets ···························································· 29(4) Notes concerning non-consolidated financial statement·························································· 31(Going concern assumptions) ························································································ 31(Changes of accounting policy) ······················································································ 31(Additional information) ······························································································ 31(Significant subsequent events) ······················································································ 31

41. Business Results and Qualitative Information for the Fiscal Year Ended March 31, 2022
(1) General overview of financial performance
General overview
The economic environment in the consolidated fiscal year showed signs of recovery from last year’s COVID-19
pandemic. However, it has remained tough due to semiconductor shortages, soaring raw material prices, and the escalating
tension in Ukraine. There is concern that uncertainty will continue.
Under the circumstances, the net sales of the T.RAD Group (on a foreign currency basis) largely increased from thesame period of the previous year except China and Other(including elimination). Operating income increased except China.
The profit attributable to owner of parent increased from the same period of the previous year due to the net sales largely
increased etc.
As a result, net sales during the consolidated fiscal year under review increased by 20,534 million yen from the previous
fiscal year, amounting to 133,581 million yen (up 18.2% year on year), operating income increased by 3,776 million yen,amounting to 5,041 million yen (up 298.7% year on year), ordinary income increased by 4,457 million yen, amounting to5,997 million yen (up 289.4% year on year) and profit attributable to owners of parent increased by 4,840 million yen,amounting to 3,600 million yen.
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.
Domestic subsidiaries have the same settlement date that coincides with the last day of the consolidated fiscal year. The
corresponding segment is Other.
Net SalesJapan
UnitedStatesEuropeOperating Income (Loss)

Increase/
Decrease

Percentagechange(on a foreign
currency basis)*

Fiscal year
ended March
31, 2021

Fiscal year
ended March
31, 2022

Increase/
Decrease

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

(Millions of yen)(%)

(Millions of yen)

(Millions of yen)

(Millions of yen)(%)

50,17760,56010,383

20.7

(506)

1,484

1,990

―

23,567

29,104

5,537

11.1

(1,938)(1,374)

563

36.2

2,982
11,774
23,465

4,432
15,32523,888

1,449
3,550
423

36.3
22.2
-9.3

(335)
1,166
2,956

(101)
2,308
2,738

234
1,142
-217

72.1
92.0
-18.5

Fiscal year
ended March
31, 2021

Fiscal year
ended March
31, 2022(Millions of yen)

Asia
China
Other
(including
1,078
270
-808
-73.9
(78)
(14)
63
81.1
elimination)
Total
113,046
133,581
20,534
11.6
1,264
5,041
3,776
298.7
*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 were also affected by production cutbacks due to semiconductor shortages
at major customers. However, the net sales remained at the same level as in the same period of the previous year. Net salesof products for construction industrial machines significantly increased from the same period of the previous year due to anincrease in orders etc. As a result, the net sales in the Japan segment increased by 10,383 million yen, resulting in 60,560
million yen.
Operating income increased by 1,990 million yen from the same period of the previous year due to the net sales largely
increased etc., resulting in 1,484 million yen.
(ii) United States
Net sales of products for automobile industry significantly increased from the same period of the previous year due to thecommencement of mass production of models for which orders were newly received etc. Net sales of constructionindustrial machines decreased from the same period of the previous year due to the suspension of production of older
models. As a result, the net sales in the United States segment increased by 5,537 million yen from the same period of theprevious year, resulting in 29,104 million yen. On a foreign currency basis, it increased by 11.1%.
Operating loss of 1,374 million yen was posted, improved by 563 million yen from the same period of the previous year
due to the net sales largely increased etc. On a foreign currency basis, it increased by 36.2%.
5

(iii) Europe
In the Czech Republic and Russia, the net sales of products for automotive industry significantly increased from the same
period of the previous year due to an increase in orders etc. As a result, the net sales in the Europe segment increased by
1,449 million yen from the same period of the previous year, resulting in 4,432 million yen. On a foreign currency basis, it
increased by 36.3%.
Operating loss of 101 million yen was posted, improved by 234 million yen from the same period of the previous year
due to the net sales largely increased etc. On a foreign currency basis, it increased by 72.1%.
(iv) Asia
In in Thailand, Indonesia and Vietnam, the net sales of products for automotive industry significantly increased from thesame period of the previous year due to an increase in orders etc. As a result, the net sales in the Asia segment increased by
3,550 million yen from the same period of the previous year, resulting in 15,325 million yen. On a foreign currency basis, it
increased by 22.2%.
Operating income increased by 1,142 million yen from the same period of the previous year due to the net sales largely
increased etc., resulting in 2,308 million yen. On a foreign currency basis, it increased by 92.0%.
(v) China
Net sales of products for automobile industry decreased from the same period of the previous year due to lower sales ofcommercial vehicles and decreasing orders from Japanese customers. Net sales of products for construction industrial
machines decreased from the same period of the previous year, due to a decrease in orders etc. As a result, the net sales inthis segment increased by 423 million yen from the same period of the previous year, to 23,888 million yen, partly due tothe impact of foreign exchange rates, despite a 9.3% decrease on a foreign currency basis.
Operating income decreased by 217 million yen from the same period of the previous year, to 2,738 million yen. On a
foreign currency basis, it decreased by 18.5%.
Outlook for the fiscal year ending March 31, 2023
Regarding the outlook for the fiscal year, we expect an increase in net sales in all regions, except for some subsidiaries in
China. However, the operating income and ordinary income are expected to decrease due to significant increases in raw
material prices and distribution costs. Furthermore, we forecast extraordinary loss due to the deconsolidation of the Russian
subsidiary in addition to the withdrawal from the Russian business. The profit attributable to owners of parent is also
expected to decrease.
Therefore, we forecasts the following consolidated financial performance for the fiscal year ending March 31, 2023:
net sales of 158,400 million yen (up 19% year on year), operating income of 4,200 million yen (down 17% year on year),ordinary income of 4,600 million yen (down 23% year on year), and profit attributable to owners of parent of 1,500 million
yen (down 58% year on year).
As for the profit distribution for the fiscal year, we plan to pay out the same amount of dividend as in the previous fiscal
year (an interim dividend of 80 yen, a year-end dividend of 80 yen, and an annual dividend of 160 yen).
(2) General overview of consolidated financial position
1) Assets, liabilities and net assets
Total assets at the end of the consolidated fiscal year under review resulted in 93,756 million yen (up 6,955 million yen
from the end of the previous fiscal year) due to the increase of inventories and tangible fixed assets etc.
Liabilities resulted in 47,024 million yen (up 3,441 million yen) due to the increase of accounts payable-trade andlong-term loans payable etc.
Net assets resulted in 46,732 million yen (up 3,514 million yen) due to the increase of foreign currency translation
adjustment 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 7,262 million yen, a decrease of 213 million yen year on year due to theincrease of inventories etc. despite increase of profit before income taxes.
Net cash used by investing activities was 5,839 million yen, an increase of 1 million yen year on year.
As a result, the free cash flow, which is the sum of the net cash provided by operating activities and used in investing
activities, amounted to 1,422 million yen (a decrease of 212 million yen year-on-year).
Furthermore, net cash used in financing activities was 3,391 million yen, an increase of 2,802 million yen year on year
due to the repayment of long-term loans payable and purchase of treasury stock etc.

6

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

7

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

FY2020
As of March 31, 2021

As of March 31, 2022

AmountAmount(Assets)
Current assets
Cash and deposits

14,403

13,264

Notes and accounts receivable-trade

2,403

2,004

Electronically recorded monetary claims-operating

3,025

3,012

Accounts receivable-trade

21,742

23,832

Short-term investment securities

489

489

Merchandise and finished goods

2,962

3,805

Work in process

523

902

Raw materials and supplies

5,290

8,152

Others

2,650

2,542

Allowance for doubtful accounts

(165)

(172)

Total current assets

53,326

57,835

Buildings and structures

21,001

21,763

Accumulated depreciation(15,156)(16,048)

Noncurrent assets
Tangible fixed assets

Building and structures, net

5,844

5,715

Machinery, equipment and vehicles

52,15556,902

Accumulated depreciation(37,618)(41,824)

Machinery, equipment and vehicles, net

14,537

15,077

Land

2,344

2,384

Lease assets

746

826

Accumulated depreciation

(321)

(462)

Lease assets, net

424

364

Construction in progress

3,642

4,904

Other tangible fixed assets

30,47531,592

Accumulated depreciation(28,591)(29,838)

Other tangible fixed assets, net

1,883

1,754

Total tangible fixed assets

28,67630,200Intangible assets
11－

Other intangible assets

1,222

1,613

Total intangible assets

1,234

1,613

Investment securities

2,009

2,392

Net defined benefit asset

848

1,020

Goodwill

Investments and other assets

Long-term loans receivable from employees

0－Deferred tax assets

89

149

Others628

549

Allowance for doubtful accounts

(13)

(5)

Total investments and other assets

3,563

4,106

Total noncurrent assets

33,47435,92186,80093,756

Total assets

8

(Millions of yen)
FY2021

FY2020
As of March 31, 2021

As of March 31, 2022

AmountAmount(Liabilities)
Current liabilities
13,074

Notes and accounts payable-trade

13,994

Electronically recorded obligations - operating

3,295

4,249

Short-term loans payable

10,675

10,390

Lease obligations

444

495

Income taxes payable

484

948

Accrued expenses

2,628

3,081

Provision for bonuses

1,116

1,421

Provision for directors’ bonuses－

72

Provision for product warranties

578

272

Provision for loss on order received

148

187

Electronically recorded obligations - non-operating

461

474

Others

1,774

1,788

Total current liabilities

34,68137,377Long-term loans payable

5,910

6,720

Lease obligations

1,856

1,576

Deferred tax liabilities

694

867

Net defined benefit liability

230

287

Noncurrent liabilities

Asset retirement obligations

91

92

Others117

102

Total noncurrent liabilities

8,900

9,646

43,58247,024

Capital stock

8,570

8,570

Capital surplus

7,521

7,352

Retained earnings

27,46627,004

Treasury stock(2,258)(421)

Total shareholders’ equity

41,29942,505(1,171)948

Remeasurements of defined benefit plans

920

1,049

Total accumulated other comprehensive income

(250)

1,998

Non-controlling interests

2,169

2,228

Total net assets

43,21846,732

Total liabilities and net assets

86,80093,756

Total liabilities(Net assets)
Shareholders’ equity

Valuation and translation adjustments
Foreign currency translation adjustment

9(2) Consolidated statements of income and consolidated statement of comprehensive income(Consolidated statements of income)(Millions of yen)
FY2021

FY2020(Apr. 1, 2020–Mar. 31, 2021)(Apr. 1, 2021–Mar. 31, 2022)

AmountAmountNet sales

113,046

133,581

Cost of sales

102,205

118,478

Gross profit

10,841

15,103

Packing and delivery expenses

1,369

1,780

Provision for product warranties

594

273

Selling, general and administrative expenses

Directors' compensations

229

244

Salaries and allowances

2,112

2,308

Provision for bonuses

308

399

Provision for directors’ bonuses－

72

Provision for directors’ retirement benefits

0－Retirement benefit expenses

101

98

Welfare expenses

1,054

1,213

Depreciation

419

356

Rent expenses

395

443

Transportation and communication expenses

283

337

Research and development expenses

1,108

1,127

Entertainment expenses

21

19

Provision of allowance for doubtful accounts

94

4Commission Fee

333

295

Amortization of goodwill

99－

Miscellaneous expenses

1,049

1,086

Total selling, general and administrative expenses

9,576

10,061

Operating income (loss)

1,264

5,041

Interest income

131

156

Dividends income

Non-operating income32

Equity in earnings of affiliates－

435

Foreign exchange gains

169

315

Subsidy income

118

104

Others273

189

Total non-operating income

696

1,204

Interest expenses

263

235

Equity in losses of affiliates

142－

Others1412Non-operating expenses

Total non-operating expenses

420

248

Ordinary income

1,540

5,997

10

(Millions of yen)
FY2021

FY2020(Apr. 1, 2020–Mar. 31, 2021)(Apr. 1, 2021–Mar. 31, 2022)

AmountAmountExtraordinary income
Gain on sales of noncurrent assets

46

36

Gain on sales of golf memberships－

16

Total extraordinary income

46

52

Loss on retirement of noncurrent assets

210

128

Loss on sales of noncurrent assets

33

7

Loss on sales of investment securities

3－#¹ 1,274#¹ 15

Loss on liquidation of subsidiaries and associates

11－

Surcharges

3

－

1,535

151

51

5,899

Income taxes-current

1,605

2,187

Income taxes-deferred

(593)

71

Total income taxes

1,012

2,258

Profit (loss)

(960)

3,640

Profit (loss) attributable to non-controlling interests

278

39

(1,239)3,600

Extraordinary loss

Impairment loss

Total extraordinary loss
Income (loss) before income taxes

Profit (loss) attributable to owners of parent

11

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

FY2020(Apr. 1, 2020–Mar. 31, 2021)(Apr. 1, 2021–Mar. 31, 2022)

AmountAmount(960)

Profit (loss)

3,640

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

6－

Foreign currency translation adjustment

(727)

2,353

Remeasurements of defined benefit plans, net of tax

767

128

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

(41)

41

6

2,523

(954)

6,163

(1,230)

5,849

275

314

Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests12(3) Consolidated statements of changes in net assets
Fiscal year ended March 31, 2021(April 1, 2020 to March 31, 2021)(Millions of yen)
Shareholders’ Equity
Capital stock
As of April 1, 2020
Cumulative effects of changes inaccounting policies
As of April 1, 2020 reflectingchanges in accounting policies

Capital surplus

Retained earnings

Total
shareholders’ equity

Treasury stock

8,545

7,496

29,065(2,257)42,850

8,545

7,496

29,065(2,257)42,85024

24

Changes of items during the period
Issuance of new shares

49

Dividends from surplus

(359)

(359)

Profit(Loss) attributable toowners of parent(1,239)(1,239)Purchase of treasury stock

(0)

(0)

Disposal of treasury stock－

Retirement of treasury stock－

Change in ownership interestof parent due to transactions with
non-controlling interests
Net changes of items other thanshareholders’ equity
Total changes of items during theperiod－As of March 31, 2021

24

24(1,599)(0)(1,550)

8,570

7,521

27,466(2,258)41,299(Millions of yen)
Valuation and translation adjustments
Valuation difference
on available-for-salesecurities

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total valuationand translation
adjustments

Non-controllinginterests

Total net assets

As of April 1, 2020

(6)

(405)

152

(259)

2,256

44,846

Cumulative effects of changes
in accounting policies
As of April 1, 2020 reflectingchanges in accounting policies
Changes of items during theperiod

(6)

(405)

152

(259)

2,256

44,846

Issuance of new shares

49

Dividends from surplus(359)

Profit(Loss) attributable toowners of parent(1,239)Purchase of treasury stock(0)

Disposal of treasury stock－

Retirement 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, 2021

－
6

(766)

768

9

(86)

(77)

6

(766)

768

9

(86)

(1,628)－(1,171)

920

(250)

2,169

43,21813

Fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022)(Millions of yen)
Shareholders’ Equity
Capital stock
As of April 1, 2021

Capital surplus

8,570

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

Retained earnings

7,521

Total
shareholders’ equity

Treasury stock

27,466(2,258)

(1)
8,570

7,521

41,299(1)

27,464(2,258)41,298Changes of items during the period
Issuance of new shares－

Dividends from surplus

(281)

(281)

Profit attributable toowners of parent

3,600

3,600

Purchase of treasury stock
Disposal of treasury stock

12

Retirement of treasury stock(179)

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

3,959

－

(169)

(460)

1,837

1,207

8,570

7,352

27,004(421)

42,505(1,171)Remeasurementsof defined
benefit plans

Total valuationand translation
adjustments

Non-controllinginterests

Total net assets

920

(250)

2,169

43,218(1)(1,171)

920

(250)

2,169

43,216

Issuance of new shares－

Dividends from surplus(281)

Profit attributable toowners of parent

3,600

Purchase of treasury stock(2,159)

Disposal of treasury stock

49

Retirement of treasury stock－

As of March 31, 2022

49－

(Millions of yen)

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

36

(1)

Valuation and translation adjustments

Cumulative effects of changes
in accounting policies
As of April 1, 2021 reflectingchanges in accounting policies
Changes of items during theperiod(2,159)(1)

As of March 31, 2022

As of April 1, 2021

(2,159)

(1)
2,120

128

2,249

58

2,308

2,120

128

2,249

58

3,515

948

1,049

1,998

2,228

46,73214

(4) Consolidated statements of cash flows(Millions of yen)
FY2021

FY2020(Apr. 1, 2020–Mar. 31, 2021)(Apr. 1, 2021–Mar. 31, 2022)

AmountAmountNet cash provided by (used in) operating activities
51

5,899

Depreciation and amortization

6,420

5,836

Impairment loss

1,274

15

Retirement benefit expenses

(14)

(1)

Increase (decrease) in net defined benefit liability

103

60

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

Increase (decrease) in allowance for doubtful accounts

94

(22)

Increase (decrease) in provision for bonuses

(165)

302

Increase (decrease) in provision for directors' bonuses

(43)

72

Increase (decrease) in provision for product warranties

397

(330)

Increase (decrease) in provision for shareholders benefit program

(39)

－

Loss on retirement of noncurrent assets

210

128

Loss (gain) on sales of tangible fixed assets

(13)

(29)

Loss (gain) on sales of investment securities

3－

Surcharges

3－

Interests and dividends income

(135)

(158)

Interests expenses

263

235

Foreign exchange losses (gains)

(44)

(85)

Income (loss) before income taxes

Equity in (earnings) losses of affiliates

142

(435)

Decrease (increase) in notes and accounts receivable-trade(1,309)(66)

Decrease (increase) in inventories

1,272(3,322)

Increase (decrease) in notes and accounts payable-trade

788

780

Decrease (increase) in other current assets

(229)

147

Increase (decrease) in other current liabilities

159

(42)

Other, net

162

(7)

Subtotal

9,349

8,975

Interest and dividends income received

140

252

Interest expenses paid

(254)

(228)

Income taxes paid

(1,756)(1,737)

(3)

－

7,475

7,262

Surcharges
Net cash provided by (used in) operating activities

15

(Millions of yen)
FY2021

FY2020(Apr. 1, 2020–Mar. 31, 2021)(Apr. 1, 2021–Mar. 31, 2022)

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

853

1,314

Payments into time deposits(943)(1,356)

Purchase of tangible fixed assets(5,472)(5,231)

Proceeds from sales of tangible fixed assets

182

88

Purchase of intangible assets

(350)

(581)

Proceeds from sales of investment securities

12

7

Payments for asset retirement obligations

(100)

(100)

Other, net
Net cash provided by (used in) investing activities

(22)

19

(5,840)(5,839)1,548

65

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

－

3,820

Repayment of long-term loans payable(939)(4,138)(0)(2,159)Cash dividends paid

(359)

(281)

Cash dividends paid to non-controlling shareholders

(199)

(211)

(59)

(42)

Others

(576)

(444)

Net cash provided by (used in) financing activities(588)(3,391)

Purchase of treasury stock

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

(156)

758

Net increase (decrease) in cash and cash equivalents

889(1,210)Cash and cash equivalents at beginning of period

13,724

14,614

Cash and cash equivalents at end of period

14,614

13,40416

(5) Notes concerning Consolidated Financial Statements(Going concern assumptions)Not applicable(Changes of accounting policy)(Application of accounting standard for revenue recognition)
We have applied the Accounting Standard for Revenue Recognition (hereinafter referred to as the “ASRR”)
under Statement No. 29, March 31, 2020, of the Accounting Standards Board of Japan (ASBJ) since thebeginning of the current consolidated fiscal year. We recognize revenue as the amount receivable in exchange
for goods or services when the possession of the promised goods or services is transferred to the customer.
As a result of the adoption of the ASRR, We have changed from recognition of the cancellation of paid-for
supplies in paid-for transactions to non-recognition of the cancellation of such supplies if we are obligated torepurchase the supplies.
We have complied with the transitional treatment prescribed in the provision of Paragraph 84 of the ASRR to
apply ASRR, adjusted retained earnings per the cumulative effect of retroactively applying the new accounting
policy before the current fiscal year to at the beginning of the current fiscal year and applied the new accounting
policy to the balance at the beginning of this fiscal year. However, following the method specified in Paragraph
86 of the ASRR, we have not applied the new accounting policy retrospectively to contracts for which almost all
revenues were recognized per the previous treatment before the beginning of the current consolidated fiscal year.
Furthermore, we have applied the method prescribed in Paragraph 86 (1) of the ASRR, conducted accountprocessing for changes in contracts made before the current consolidated fiscal year based on the contract terms
after reflecting all contract changes and adjusted the retained earnings per the cumulative effect of the changes atthe beginning of the current consolidated fiscal year.
As a result, in the consolidated balance sheet for current consolidated fiscal year, raw materials increased by
227 million yen, current assets and others decreased by 200 million yen and retained earnings increased by 26
million yen. In the consolidated statements of income for current consolidated fiscal year, the cost of sales
decreased by 27 million yen. The operating income, ordinary income, and profit before income taxes eachincreased by 27 million yen. The balance of retained earnings at the beginning of the current fiscal year
decreased by 1 million yen. In addition, the effect on per share information is negligible.
(Application of accounting standard for the fair value measurement)
We have applied the Accounting Standard for Fair Value Measurement (hereinafter referred to as the “Fair
Value Measurement Standard”) under Statement No. 30, July 4, 2019, of the Accounting Standards Board ofJapan (ASBJ) since the beginning of the current consolidated fiscal year. Under the transitional treatmentprescribed in Paragraph 19 of the Fair Value Measurement Standard and Paragraph 44-2 of the AccountingStandards for Financial Instruments (ASBJ Statement No. 10, July 4, 2019), we will apply the new accounting
policy prescribed by the Fair Value Measurement Standard prospectively. This arrangement does not affect thecurrent consolidated fiscal year.

17

(Consolidated statements of income)#1 Impairment Loss:
Impairment losses were recorded in the following asset groups of the Group:
FY2020 (April 1, 2020–March 31, 2021)
Place

Purpose of use

Type

Impairment loss
(Millions of yen)

Machinery, equipment and vehicles
16
The Company,
Tools, furniture and fixtures
35
Head Quarter etc.
Idle assets
Software58
Shibuya-ku, Tokyo, Japan
Subtotal
111
Machinery, equipment and vehicles
823
T.RAD North America, Inc.
Tools,
furnitureandfixtures73
Manufacture and sales of
Hopkinsville, Kentucky,
heat exchangers
Construction in progress
199
U.S.A
Subtotal
1,095
Machinery, equipment and vehicles
62
T.RAD Czech s.r.o
Manufacture and sales ofTools, furniture and fixtures
5
Unhost, Czech
heat exchangers
Subtotal
67
Total
1,274
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 in the United States and Czech Republic, regarding aforementioned tangible
fixed assets were no longer expected to recover the investment amount due to the decrease in profitability. Accordingly, theirbook 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 North America, Inc. the calculation reflects 5.11% to 5.92% discount. T.RAD Czech s.r.o.
has no value in use based on future cash flows. Therefore, the recoverable amount is evaluated as zero, and no
discount rate is applied.
FY2021 (April 1, 2021–March 31, 2022)
Place
T.RAD Czech s.r.o
Unhost, Czech

Purpose of use

Type

Impairment loss
(Millions of yen)

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

18

(Additional information)(About the accounting estimate associated with the spread of novel coronavirus infections)
The spread of the COVID-19 pandemic is an event that has a widespread impact on the economy and corporate
activities. There is a possibility that the operation adjustments of customers will have a significant impact on the
T.RAD Group. However, in the current consolidated fiscal year (fiscal year ended in March 2022), the impact
almost disappeared. If we assume that this situation will continue in the next consolidated fiscal year (fiscal year
ending in March 2023), we have made accounting estimates for the current consolidated fiscal year (fiscal year
ended in March 2022).
(Application of tax effect accounting related to the transition from the consolidated tax payment system to theGroup Total System)
We and some of our consolidated domestic subsidiaries will shift from the consolidated tax payment system tothe group totalization system from the next consolidated fiscal year. However, some items in the non-consolidated
tax payment system were reviewed according to the shifting to the group aggregation system established by the
Act for Partial Revision of the Income Tax Acts and other Acts (Act No. 8 of 2020). For such items, theprovisions of paragraph 44 of the Guidance on Accounting Standard for Tax Effect Accounting (Guidance No. 28of the Accounting Standards Board of Japan (ASBJ), February 16, 2018) are not applied due to the treatment inparagraph 3 of the Practical Solution on the Treatment of Tax Effect Accounting for the Transition from theConsolidated Taxation System to the Group Tax Sharing System (Practical Issues Task Force No. 39, March 31,2020). The deferred tax assets and deferred tax liabilities are based on the tax law before the revision.
Effective from the beginning of the next fiscal year, we plan to apply the Treatment for Auditing of Reserve under Special
Taxation Measures Law and Reserve under Special Laws (Practical Issues Task Force No. 42, August 12, 2021). The said
treatment provides for the accounting treatment and disclosure of corporate tax, local tax, and tax effect accounting in the caseof applying the group totalization system.
(Segment information)
1. General information of reportable segments
Our reportable segments are its components for which separate financial information is available. Our
reportable segments are its components for which separate financial information is available. These components
are subject to periodic review by the Management Committee, composed of directors, corporate auditors, etc., toshare the status of business execution and important matters and issues.
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, airconditioners and others are manufactured and sold.
2. Calculation method for net sales, profit (loss), assets and other items by reportable segment
The accounting method for the Group’s reportable segments is comply with accounting policy adopted 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.

19

3. Net sales, profit (loss), assets and other items by reportable segments
Fiscal year ended March 31, 2021(from April 1, 2020 to March 31, 2021)(Millions of yen)
Reportable segment
Other
Total
UnitedJapan
Europe
Asia
China
Total
StatesNet Sales:
Sales to outside customers
50,17723,567
2,982
11,774
23,465111,967
1,078
113,046
Intersegment sales or
6,100
218
271
148
1,504
8,243
1,809
10,052transfers
Total
56,27823,785
3,254
11,92324,969120,2102,888
123,098
Segment income (loss)(506)(1,938)
(335)
1,165
2,956
1,343
(36)
1,306
Segment assets
60,352
15,323
2,361
9,288
18,681106,007
1,060
107,067
Other items
Depreciation
3,545
1,244
112
835
690
6,429
88
6,517
Investment amount in
531
531
531
equity-method affiliate
Increase of tangible fixed
assets and intangible
2,844
1,746
118
897
502
6,110
37
6,148
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, 2022(from April 1, 2021 to March 31, 2022)(Millions of yen)
Reportable segment
Other
Total
UnitesJapan
Europe
Asia
China
Total
StatesNet Sales:
Sales to outside customers
60,56029,104
4,432
15,32523,888133,311
270
133,581Intersegment sales or
7,747
120
336
206
2,001
10,412
1,915
12,328transfers
Total
68,30829,224
4,769
15,53125,890143,7232,186
145,909
Segment income (loss)
1,484(1,374)
(101)
2,308
2,738
5,056
64
5,120
Segment assets
65,174
19,317
3,132
10,10019,173116,898
928
117,826
Other items
Depreciation
2,844
1,265
105
745
804
5,765
69
5,835
Investment amount in
531
531
531
equity-method affiliate
Increase of tangible fixed
assets and intangible
2,940
1,427
231
512
1,132
6,244
26
6,271
assetsNote: “Other” comprises business operations that are not categorized as reportable segments and includes the businessactivities of domestic subsidiaries, such as the transportation business.

20

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)
FY2020Net sales
Total of reportable segments

FY2021
120,210

143,723

Net sales of the classification “Others”

2,888

2,186

Elimination of trades among segments(10,052)(12,328)

Net sales in the consolidated financial statements

113,046

133,581(Millions of yen)

FY2020

ProfitFY2021

Total of reportable segments

1,343

5,055

Profit of the classification “Others”

(36)

64

Elimination of trades among segments

(41)

(78)

Operating income in the consolidated financial statements

1,264

5,041
(Millions of yen)

FY2020AssetsTotal of reportable segments

FY2021106,007

116,898

1,060

928

(20,265)(24,069)

86,80093,756

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

Other items

Total of reportablesegments

Other

Adjustments(Note)

Posted amounts in the
consolidated financial
statements

FY2020

FY2021

FY2020

FY2021

FY2020

FY2021

FY2020

FY2021

Depreciation

6,429

5,765

88

69

(97)

0

6,420

5,836

Investment amount toequity-method affiliate

531

531

－

－

1,435

1,818

1,966

2,349

Increase of tangible fixed
6,110
6,244
37
26
5,935
6,173
(213)
(98)
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: (98) million yen

21

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

FY2020

FY2021(April 1, 2020 to March 31, 2021)(April 1, 2021 to March 31, 2022)

Amount%Amount%Increase/Decrease
Amount%For Automobile

85,81775.9

97,452

73.0

11,63413.6

For construction &industrial machine

22,38119.8

31,814

23.8

9,432

42.1

For Air conditioner

1,961

1.7

2,128

1.6

166

8.5

Other

2,885

2.6

2,186

1.6

-698

-24.2

113,046100.0
133,581
Total
Notes: Amounts less than one million yen have been truncated.

100.0

20,53418.2

22

(Per share information)
FY2020
FY2021(April 1, 2020–March 31, 2021)(April 1, 2021–March 31, 2022)
Net assets per share:¥5,673.72¥6,810.22
Net income(loss) per share:¥(171.62)¥515.97(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(loss) per share as follows.
FY2020(April 1, 2020–March 31, 2021)
Net income(loss) per share
Profit(Loss) attributable toowners of parent(Millions of yen)Amount that is not attributable toshares of common stock(Millions of yen)
Profit(Loss) attributable to owners ofparent related to shares of common
stock (Millions of yen)
Average number of shares ofcommon stock during the period(Thousands)

FY2021(April 1, 2021–March 31, 2022)(1,239)

3,600

—

—

(1,239)

3,600

7,223

6,978

(Omitted disclosure)
Disclosure of the statement of comprehensive income, lease transactions, information on related parties, financial
products, securities, derivative transactions, retirement benefits, stock options, tax-effect accounting, asset
retirement obligations, and notes related to the rental property are omitted because disclosure of such information
is deemed to be insignificant.
(Significant subsequent events)
Not applicable23

4. Non-Consolidated Financial Statements and main notes(1) Non-consolidated balance sheets(Millions of yen)
FY2021

FY2020
As of March 31, 2021

As of March 31, 2022

AmountAmount(Assets)
Current assets
5,957

Cash and deposits

3,860

Notes receivable-trade

126

308

Electronically recorded monetary claims-operating

3,025

3,012

Accounts receivable-trade13,12815,482

Short-term investment securities

489

489

Merchandise and finished goods

1,463

1,561

Work in process

975

937

Raw materials and supplies

600

671

Prepaid expenses

149

129

Accounts receivable-other

2,065

2,060

Other current assets

3

6

Allowance for doubtful accounts(0)－27,98428,520Total current assets
Noncurrent assets
Tangible Fixed Assets
Buildings

12,684

12,792

Accumulated depreciation(10,048)(10,332)

2,636

2,460

Buildings, net
Structures

1,542

1,566

Accumulated depreciation(1,296)(1,331)

246

235

Structures, net
Machinery and equipment

26,087

26,410

Accumulated depreciation(19,953)(20,625)

Machinery and equipment, net

6,133

5,785

Vehicles128

110

Accumulated depreciation

(113)

(100)

14

9

Tools, furniture and fixtures

25,29625,494

Accumulated depreciation(24,357)(24,813)

Vehicles, net

Tools, furniture and fixtures, net

938

681

Land

1,771

1,771

Lease assets

21

25

Accumulated depreciation

(20)

(19)

0

6

1,223

2,048

Lease assets, net
Construction in progress
Other, net

0012,966

12,997

Software428

262

Other intangible assets

381

878

Total intangible assets

809

1,140

Total Tangible Fixed Assets
Intangible assets

24

(Millions of yen)
FY2021

FY2020
As of March 31, 2021

As of March 31, 2022

AmountAmountInvestments and other assets
42

42

Stocks of subsidiaries and affiliates

8,066

8,184

Investments in capital of subsidiaries and affiliates

7,446

7,873

11

9

Long-term loans receivable from employees

0－Insurance funds

49

49

Deferred tax assets

896

916

Others162

139

Allowance for doubtful accounts

(13)

(5)

Allowance for investment loss

(3,778)(1,280)Total investments and other assets

12,884

15,928

Total noncurrent assets

26,66030,066

Total assets

54,64558,587

Electronically recorded obligations – operating

3,295

4,249

Accounts payable-trade

6,343

7,039

Short-term loans payable

3,992

2,882

Lease obligations

196

228

Accounts payable-other

533

824

Income taxes payable

61

516

Accrued consumption taxes

164

58

Accrued expenses

1,337

1,522

Advances received

173

104

Deposits received

63

53

Investment securities

Long-term prepaid expenses(Liabilities)
Current liabilities

1,072

1,367

Provision for directors’ bonuses－

72

Provision for product warranties

23

32

Electronically recorded obligations - non-operating

461

474

7

4

17,726

19,431Long-term loans payable

5,752

6,690

Lease obligations

226

4

Provision for retirement benefits

493

507

Asset retirement obligations

63

63

Others38

35

Provision for bonuses

OthersTotal current liabilities
Noncurrent liabilities

Total noncurrent liabilities
Total liabilities

25

6,574

7,301

24,30026,733

(Millions of yen)
FY2021

FY2020
As of March 31, 2021

As of March 31, 2022

AmountAmount(Net assets）
Shareholders’ equity
8,570

8,570

Legal capital surplus

7,331

7,331

Other capital surplus

167－

Total capital surplus

7,498

7,331

1,097

1,097

Reserve for dividends

500

500

Reserve for special account for advanced depreciation of noncurrent assets

96

110

General reserve

8,130

8,130

Retained earnings brought forward

6,709

6,535

Capital stock
Capital surplus

Retained earnings
Legal retained earnings
Other retained earnings

Total retained earnings

16,533

16,374

Treasury stock(2,258)(421)

Total shareholders’ equity

30,34431,854

Valuation difference on available-for-sale securities－－

Total valuation and translation adjustments－－

Total net assets

30,34431,854

Total liabilities and net assets

54,64558,587

Valuation and translation adjustments26

(2) Non-consolidated statements of income(Millions of yen)
FY2021

FY2020Net sales(Apr. 1, 2020–Mar. 31, 2021)(Apr. 1, 2021–Mar. 31, 2022)

AmountAmount56,27868,308

Beginning finished goods

1,616

1,362

Cost of products manufactured

45,76754,023Purchase of finished goods

1,131

2,046

Transfer from other account

3,214

3,636

Total

Cost of sales

51,72961,068Finished goods transfer to other account

164

167

Ending finished goods

1,362

1,435

Cost of finished goods sold

50,20359,465Gross profit

6,074

8,842

2,172

2,692

Advertising expenses

38

36

Provision for product warranties

36

43

Selling, general and administrative expenses
Packing and delivery expenses

Directors' compensations

216

220

Salaries and allowances

1,022

1,086

Provision for bonuses

264

345

Provision for directors’ bonuses－

72

Provision for retirement benefits

81

73

Welfare expenses

435

433

Depreciation

229

176

Repair expenses

94

125

Taxes and dues

101

98

Rent expenses

265

336

Transportation and communication expenses

159

204

Research and development expenses

1,020

1,035

Insurance expenses

14

19

Stationery expenses

32

81Entertainment expenses

95Commission Fee

241

196

Miscellaneous expenses

151

87

Total selling, general and administrative expense

6,590

7,369

Operating income (loss)

(515)

1,473

1

1

Non-operating income
Interest income
Interest on securities

1

1

Dividends income

3,084

3,616

Foreign exchange gains

139

283

Subsidy income

104

33

Others160

127

Total non-operating income

3,492

4,064

27

(Millions of yen)
FY2021

FY2020(Apr. 1, 2020–Mar. 31, 2021)(Apr. 1, 2021–Mar. 31, 2022)

AmountAmountNon-operating expenses
Interest expenses

40

39

Others1

2

Total non-operating expenses
Ordinary income

42

41

2,934

5,496

Extraordinary income
Gain on sales of noncurrent assets

100Gain on extinguishment of tie-in shares

590－

Gain on sales of golf memberships－

16

Total extraordinary income

601

16

Loss on sales of noncurrent assets－

5

Loss on retirement of noncurrent assets

191

114

Impairment loss

111

－

3

－

Extraordinary Loss

Loss on sales of investment securities

3,778

103

Loss on valuation of shares of subsidiaries and associates－

590

Loss on valuation of investment securities

59－

Loss on liquidation of subsidiaries

38－

Loss on sales of property

90－

Surcharges

3－

Total extraordinary loss

4,275

813

Income before income taxes

(740)

4,699

Income taxes-current

427

817

Income taxes-deferred

(488)

(20)

Provision of allowance for investment loss

Total income taxes

(60)

797

Net income(loss)

(679)

3,901

28

(3) Non-consolidated statements of changes in net assets
Fiscal year ended March 31, 2021 (April 1, 2020 to March 31, 2021)(Millions of yen)
Shareholders’ Equity
Capital Surplus

Capital
stock

Legal
capitalsurplus

OthercapitalsurplusTotal
capitalsurplusLegalretainedearnings

8,545

7,306

167

7,473

1,097

24

24

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

7,746

17,573

2―

Dividends from surplus

(359)

(359)

Net income(loss)

(679)

(679)

As of April 1, 2020

Reservefordividends

500

98

8,130

Changes of items during
the period
Issuance of new shares

24

Provision of reserve foradvanced depreciation of
non-current assets
Reversal of reserve foradvanced depreciation of
non-current assets(2)

Purchase of treasury stock
Disposal of treasury stock
Retirement of treasury stock
Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
As of March 31, 2021

24

24

―

24

―

―

(2)

―

(1,036)(1,039)

8,570

7,331

167

7,498

1,097

500

96

8,130

6,709

16,533(Millions of yen)
Shareholders’ Equity

As of April 1, 2020

Valuation and translation adjustments

Treasury
stock

Total
Shareholders’equityValuation difference on
available-for-sale securities(2,257)31,334(6)

Total net assets

Total valuation andtranslation adjustments(6)

31,328Changes of items during
the period
Issuance of new shares
Provision of reserve foradvanced depreciation of
non-current assets
Reversal of reserve foradvanced depreciation of
non-current assets
Dividends from surplus
Net income(loss)
Purchase of treasury stock

(0)

49

49

―

―

(359)

(359)

(679)

(679)

(0)

(0)

Disposal of treasury stock
Retirement of treasury stock
Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
As of March 31, 2021

6

6

6

(0)

(990)

6

6

(983)

(2,258)30,334――30,34429

Fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022)(Millions of yen)
Shareholders’ Equity
Capital Surplus

Capital
stock

Legal
capitalsurplus

OthercapitalsurplusTotal
capitalsurplusLegalretainedearnings

8,570

7,331

167

7,498

1,097

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

6,709

16,533

16

(16)

－

(2)

2

－

Dividends from surplus

(281)

(281)

Net income

3,901

3,901

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

Reservefordividends

500

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

96

8,130

Purchase of treasury stock
Disposal of treasury stock

12

12Retirement of treasury stock

(179)

(179)

Total changes of items during
the period
As of March 31, 2022

－

－

(167)

(167)

－

－

14

－

(173)

(159)

8,570

7,331

－

7,331

1,097

500

110

8,130

6,535

16,374(Millions of yen)
Shareholders’ Equity

As of April 1, 2021

Valuation and translation adjustments

Treasury
stock

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

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

Total valuation andtranslation adjustments－

Total net assets
30,344－－－－

Dividends from surplus

(281)

(281)

Net income

3,901

3,901

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

Disposal of treasury stock

36

49

49
－

Retirement of treasury stock

3,959

－

Total changes of items during
the period

1,837

1,510

－

－

1,510

As of March 31, 2022

(421)

31,854－－31,85430

(4) Notes concerning non-consolidated financial statement(Going concern assumptions)Not applicable(Changes of accounting policy)(Application of accounting standard for revenue recognition)
We have applied the Accounting Standard for Revenue Recognition (hereinafter referred to as the “ASRR”)
under Statement No. 29, March 31, 2020, of the Accounting Standards Board of Japan (ASBJ) since thebeginning of the current consolidated fiscal year. We recognize revenue as the amount receivable in exchange forgoods or services when the possession of the promised goods or services is transferred to the customer.
For certain paid-in transactions in which we are obligated to repurchase supplies, we apply the alternative
treatment and recognize the extinguishment of such supplies.
We have complied with the transitional treatment prescribed in the provision of Paragraph 84 of the ASRR to
apply ASRR, adjusted retained earnings per the cumulative effect of retroactively applying the new accounting
policy before the current fiscal year to at the beginning of the current fiscal year and applied the new accounting
policy to the balance at the beginning of this fiscal year. However, following the method specified in Paragraph
86 of the ASRR, we have not applied the new accounting policy retrospectively to contracts for which almost all
revenues were recognized per the previous treatment before the beginning of the current consolidated fiscal year.
Furthermore, we have applied the method prescribed in Paragraph 86 (1) of the ASRR, conducted accountprocessing for changes in contracts made before the current consolidated fiscal year based on the contract terms
after reflecting all contract changes and adjusted the retained earnings per the cumulative effect of the changes atthe beginning of the current consolidated fiscal year.
This Application of accounting standard does not affect the current consolidated fiscal year.
(Application of accounting standard for the fair value measurement)
We have applied the Accounting Standard for Fair Value Measurement (hereinafter referred to as the “Fair
Value Measurement Standard”) under Statement No. 30, July 4, 2019, of the Accounting Standards Board ofJapan (ASBJ) since the beginning of the current consolidated fiscal year. Under the transitional treatmentprescribed in Paragraph 19 of the Fair Value Measurement Standard and Paragraph 44-2 of the AccountingStandards for Financial Instruments (ASBJ Statement No. 10, July 4, 2019), we will apply the new accounting
policy prescribed by the Fair Value Measurement Standard prospectively. This arrangement does not affect thecurrent consolidated fiscal year.
(Additional information)(About the accounting estimate associated with the spread of novel coronavirus infections)
The spread of the COVID-19 pandemic is an event that has a widespread impact on the economy and corporate
activities. There is a possibility that the operation adjustments of customers will have a significant impact on the
T.RAD Group. However, in the current consolidated fiscal year (fiscal year ended in March 2022), the impact
almost disappeared. If we assume that this situation will continue in the next consolidated fiscal year (fiscal year
ending in March 2023), we have made accounting estimates for the current consolidated fiscal year (fiscal year
ended in March 2022).
(Application of tax effect accounting related to the transition from the consolidated tax payment system to theGroup Total System)
We will shift from the consolidated tax payment system to the group totalization system from the next
consolidated fiscal year. However, some items in the non-consolidated tax payment system were reviewed
according to the shifting to the group aggregation system established by the Act for Partial Revision of the
Income Tax Acts and other Acts (Act No. 8 of 2020). For such items, the provisions of paragraph 44 of the
Guidance on Accounting Standard for Tax Effect Accounting (Guidance No. 28 of the Accounting Standards
Board of Japan (ASBJ), February 16, 2018) are not applied due to the treatment in paragraph 3 of the Practical
Solution on the Treatment of Tax Effect Accounting for the Transition from the Consolidated Taxation System
to the Group Tax Sharing System (Practical Issues Task Force No. 39, March 31, 2020). The deferred tax assets
and deferred tax liabilities are based on the tax law before the revision.
Effective from the beginning of the next fiscal year, we plan to apply the Treatment for Auditing of Reserve
under Special Taxation Measures Law and Reserve under Special Laws (Practical Issues Task Force No. 42,
August 12, 2021). The said treatment provides for the accounting treatment and disclosure of corporate tax, local
tax, and tax effect accounting in the case of applying the group totalization system.
(Significant subsequent events)
Not applicable31