Consolidated Financial Results for the 3rd Quarter of Fiscal Year Ending March 31, 2020
(J-GAAP)
February 3, 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 filing of 3rd quarter securities report:
February 4, 2020
Scheduled date of start of dividend payments:―
Supplemental materials prepared for consolidated financial results: None
Briefing on consolidated financial results: None
(Amounts less than one million yen have been truncated)

1. Consolidated Financial Performance for the 3rd Quarter of Fiscal Year Ending March 31, 2020
(April 1, 2019 to December 31, 2019)(1) Consolidated operating performance(Percentage figures indicate year-on-year change)
Net sales
Millions of yen

Operating income% Millions of yen

Ordinary income% Millions of yen

Nine months ended
97,034-5.7
1,857 -57.4
1,845
December31, 2019
Nine months ended
102,875
13.7
4,357
-1.7
4,647
December31, 2018
Note: Comprehensive income
Nine months ended December 31, 2019: ¥484 million -55.9%
Nine months ended December 31, 2018: ¥1,096 million -71.6%
Net income per share
Diluted net income per share
Nine months ended
December31, 2019
Nine months ended
December31, 2018

Yen

Yen

196.37―258.65―(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Profit attributable toowners of parent% Millions of yen
%

-60.3

1,463

-28.9

-8.1

2,058

-41.1

Equity ratio

Net assets per share

Millions of yen%

Yen

44,42047.2

5,881.61

46,17047.4

5,537.07

Nine months ended
89,656
December31, 2019
Fiscal year ended
92,929March 31, 2019
Reference: Shareholders’ equity
As of December 31, 2019: ¥42,343 million
As of March 31, 2019 : ¥44,072 million

2. Dividends
1Q

2Q
Yen

Dividends per Share
3Q
Yen
Yen

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

1

Year-end
Yen

Total
Yen

50.00

90.00

50.00

90.00

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

Net sales
Millions ofyen%Operating income

Ordinary income

Millions ofyenMillions of
yen

%

%

Profit attributable toowners of parent
Millions ofyenNetincomeper share%

Yen

Fiscal year ending
130,500-4.1
2,200 -56.8
2,300
-58.7
900
-48.1
125.01March 31, 2020
Note: Revisions to the forecast of consolidated financial performance since the latest official announcement: No

4. Other(1) Changes in significant subsidiaries during the current quarter consolidated accumulative period(changes in specific subsidiaries resulting in changes in the scope of consolidation): None
(2) Adoption of specific accounting policies for quarterly consolidated financial statements: None
(3) Changes in accounting principles, estimation procedures or presentation methods
1) Changes associated with revision of accounting standards: Yes
2) Changes other than 1): None
3) Changes accounting estimation procedures: None
4) Changes in presentation methods: None
For details, please refer to P.13 “2. Quarterly Consolidated Financial Statements and main notes (4) Notes toquarterly consolidated financial statements (Changes of accounting policy)(4) Number of shares issued and outstanding (common stock)1) Number of shares issued and outstanding at end of period (including treasury stock)
As of December 31, 2019: 8,344,405 shares
As of March 31, 2019 : 8,344,405 shares
2) Number of shares of treasury stock at end of period
As of December 31, 2019: 1,145,155 shares
As of March 31, 2019 : 384,960 shares
3) Average number of shares outstanding during the period
Nine months ended December 31, 2019: 7,454,154 shares
Nine months ended December 31, 2018: 7,959,731 shares* The consolidated financial results presented herein are not subject to the audit procedures by certified public
accountant or audit firm.
* Explanations for proper use of forecasts and other specific affairs
The forward-looking statement such as forecast of financial performance etc. described in this report based on
information currently available and certain assumptions judged to be reasonable. Actual performance may
differ significantly from these projections due to various factors.
(Changes in presentation method of date)
We changed presentation method of date to Western calendar style from Japanese calendar style since“Consolidated Financial Results for the 1st Quarter of Fiscal Year Ending March 31, 2020”2

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

31. Qualitative Information for the Third Quarter of Fiscal Year Ending March 31, 2020
(1) Consolidated financial performance
The economic environment during the current third quarter consolidated accumulative period, remained strong aided by
the favorable transition of domestic demand although decrease of exports behind the gradual slowdown in global economy.
However, there are risks which exert downward pressure on the economy due to the slowdown in Chinese and Indian
economy, U.S-China trade conflict and the withdrawal of UK from the EU etc.
Under the circumstances, the net sales of the T.RAD Group (on a foreign currency basis) decreased from the same periodof the previous year except United States and China etc. Operating income decreased except Europe. The profit attributableto 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 cumulative third quarter decreased by 5,840 million yen from the previous
fiscal year, amounting to 97,034 million yen (down 5.7% year on year), operating income decreased by 2,499 million yen,amounting to 1,857 million yen (down 57.4% year on year), ordinary income decreased by 2,802 million yen, amounting to
1,845 million yen (down 60.3% year on year) and profit attributable to owners of parent decreased by 595 million yen,amounting to 1,463 million yen (down 28.9% year on year).
The segment results are as follows.
The book-closing date for the consolidated subsidiaries for the first nine months of the fiscal year under review isSeptember 30. In preparing the consolidated financial statements, the financial statements as of, and for the nine-month
period ended on this date were used. With respect to material transactions conducted during the period between this date
and the book-closing date for consolidated accounting, we have made adjustments as necessary for consolidated accounting.
The segments relevant to such adjustments include the United States, Europe, Asia and China.
Three of domestic subsidiaries have the same settlement date that coincides with the last day of the consolidated fiscal
year. The segment impacted by such adjustments is Other.
Net Sales
Operating Income (Loss)
Nine months Nine months
ended
ended
December 31, December 31,
2018
2019

Japan
United States

Europe
Asia
China
Other
(including
eliminations)

Increase/
Decrease

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

(Millions of yen)

(Millions of yen)

45,661
24,073
3,228
13,714
15,47842,76024,0071,970
13,071
14,416-2,900-66-1,257-643-1,062

719

809

89

Nine months Nine months
ended
ended
December 31, December 31,
2018
2019

Increase/
Decrease

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

(Millions of yen)

(Millions of yen)

-6.4
4.9
-32.1
-4.7
1.3

682
(28)
(927)
1,981
2,229

(614)
(635)
(810)
1,609
1,917

-1,297
-606
117
-372
-311

-190.1
―
2.1
-18.9
-6.2

12.4

*1 420*2 391

-28

-6.8

Total
102,875
97,034-5,840
-3.1
4,357
1,857
-2,499-56.6*The percentage changes (on a foreign currency basis) in the chart are the percentage changes after correcting for differences
arising from fluctuations in the foreign exchange rates applicable to overseas net sales.
*1 Breakdown of Other (including eliminations) is other segment income 142 millions of yen, eliminations of intersegment
transaction 277 millions of yen.
*2 Breakdown of Other (including eliminations) is other segment income 116 millions of yen, eliminations of intersegment
transaction 275 millions of yen.
(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 theJapan segment decreased by 2,900 million yen, resulting in 42,760 million yen.
Operating loss of 614 million yen was posted, worsening by 1,297 million yen from the same period of the previous year,
due to decreased of net sales etc.

4

(ii) United States
The net sales of products for the automobile industry increased contributed by the increase of sales of orders received for our
products of models 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 66 million yen from the same period of the previous year,
resulting in 24,007 million yen due partly to foreign exchange factors. On a foreign currency basis, it increased by 4.9%.
Operating loss of 635 million yen was posted, worsening by 606 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.
(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 1,257 million yen from the same period of the previous year, resulting in 1,970 million yen.
On a foreign currency basis, it decreased by 32.1%.
Operating loss of 810 million yen was posted, improved by 117 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 2.1%.
(iv) Asia
The net sales of products for the automobile industry decreased from the same period of the previous year due to the decreaseof 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 643 million yen from the same period of the previous year, resulting in 13,071 million yen. On a
foreign currency basis, it decreased by 4.7%.
Operating income decreased by 372 million yen from the same period of the previous year, resulting in 1,609 million yen.
On a foreign currency basis, it decreased by 18.9%.
(v) China
The net sales of products for the automobile industry increased from the same period of the previous year due to the increaseof sales for Japanese customers despite the decrease of sales of local customers. Net sales of products for construction andindustrial 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 decreased by 1,062 million yen from the same period of the previous year due
partly to foreign exchange factors, resulting in 14,416 million yen. On a foreign currency basis, it increased by 1.3%.
The operating income decreased by 311 million yen from the same period of the previous year, resulting in 1,917 million
yen. On a foreign currency basis, it decreased by 6.2%.
(2) Consolidated financial position
1) Assets, liabilities and net assets
Total assets at the end of current third quarter of the fiscal year under review resulted in 89,656 million yen (down 3,272
million yen from the end of the previous fiscal year) due to the sales of investment securities etc.
Liabilities resulted in 45,236 million yen (down 1,522 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 44,420 million yen (down 1,749 million yen) due to the purchase of treasury stock etc. despite
increases of retained earnings etc.
2) Cash flows
Cash and cash equivalents at the end of the current third quarter of the fiscal year under review totaled 14,494 million yen,increase of 1,901 million yen from the end of the previous fiscal year.
The factors for increase or decrease of each cash flow in the current third quarter consolidated accumulative period are as
follows.
Net cash provided by operating activities was 1,807 million yen, a decrease of 4,617 million yen year on year due to thedecrease of operating income and accounts payable-trade etc. Net cash provided by investing activities was 233 million yen,
an increase of 5,450 million yen year on year due to the sales of investment securities etc. Net cash used in financing activities
was 1,034 million yen, a decrease of 603 million yen year on year due to the purchase of treasury stock etc. despite increaseof loans payable.
(3) Future projections including forecasts of consolidated financial performance
We did not revise the forecast of consolidated financial performance released on November 5, 2019, as the financial results
for the first nine months of the fiscal year under review were within the expected range.

5

2. Quarterly Consolidated Financial Statements and main notes(1) Quarterly consolidated balance sheets(Millions of yen)
FY2019_3Q

FY2018
As of March 31, 2019

As of December 31,

AmountAmount2019(Assets)
Current assets
Cash and deposits

13,894

14,244

Notes and accounts receivable-trade

24,742

22,702

Electronically recorded monetary claims-operating

2,589

4,381

Short-term investment securities

399

399

Merchandise and finished goods

2,714

3,854

Work in process

734

921

Raw materials and supplies

5,370

5,547

Others

2,792

2,260

Allowance for doubtful accounts

(85)

(87)

53,15254,224

Building and structures, net

6,389

6,336

Machinery, equipment and vehicles, net

15,23915,309

Land

2,335

2,355

Lease assets, net

102

459

Construction in progress

3,457

4,117

Other tangible fixed assets, net

2,117

2,061

Total tangible fixed assets

29,64130,640Total current assets
Noncurrent assets
Tangible fixed assets

Intangible assets
Goodwill

228

139

Others

1,255

1,348

Total intangible assets

1,484

1,487

Investment securities

7,668

2,394

Net defined benefit asset

233

208

Investments and other assets

Deferred tax assets

63

65

Others704

650

Allowance for doubtful accounts

(19)

(13)

Total investments and other assets

8,650

3,304

39,77635,432

92,92989,656

Total noncurrent assets
Total assets

6

(Millions of yen)
FY2019_3Q

FY2018
As of March 31, 2019

As of December 31,
2019

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

14,28013,272

Electronically recorded obligations – operating

5,340

4,926

Short-term loans payable

8,061

7,750

Lease obligations

414

457

Income taxes payable

658

546

Accrued expenses

2,797

3,013

Provision for bonuses

1,390

792

Provision for directors’ bonuses

84

25

Provision for product warranties

235

225

Provision for shareholders benefit program

48

15

Electronically recorded obligations - non-operating

729

1,008

Asset retirement obligations

116－

Others

1,895

1,289

Total current liabilities

36,05333,323

8,368

9,979

Lease obligations

777

872

Deferred tax liabilities

1,324

795

Provision for directors' retirement benefits

5

7

Net defined benefit liability

95

125

Asset retirement obligations

90

90

Others4341Noncurrent liabilities
Long-term loans payable

Total noncurrent liabilities

10,705

11,912

46,75945,236

Capital stock

8,545

8,545

Capital surplus

7,551

7,496

Retained earnings

28,31529,093

Treasury stock(901)(2,257)

Total shareholders’ equity

43,51242,878Valuation difference on available-for-sale securities

456

45

Foreign currency translation adjustment(381)(1,046)

Remeasurements of defined benefit plans

485

465

Total liabilities(Net assets)
Shareholders’ equity

Accumulated other comprehensive income

559

(535)

Non-controlling interests

2,098

2,077

Total net assets

46,17044,420Total liabilities and net assets

92,92989,656

Total accumulated other comprehensive income7(2) Quarterly consolidated statements of income and quarterly consolidated statement of comprehensive income(Quarterly consolidated statements of income)(Millions of yen)
Nine months ended
December 31, 2019

Nine months ended
December 31, 2018
(Apr. 1, 2018–December 31, 2018)(Apr. 1, 2019–December 31, 2019)

AmountAmountNet sales

102,875

97,034

Cost of sales

90,52187,443Gross profit

12,354

9,591

Packing and delivery expenses

1,319

1,137

Salaries and allowances

1,620

1,779

Provision for bonuses

216

186

Provision for directors’ bonuses

63

25

Selling, general and administrative expenses

Retirement benefit expenses

42

58

Welfare expenses

789

965

Provision for product warranties

119

151

Research and development expenses

990

913

Others

2,834

2,515

Total selling, general and administrative expenses

7,996

7,733

Operating income (loss)

4,357

1,857

Interest income

93

105

Dividends income

184

103

Non-operating income

Gain on investments in partnership－

5

Equity in earnings of affiliates

150－

Others149

75

Total non-operating income

578

289

Interest expenses

188

232

Foreign exchange losses

83

38

Equity in losses of affiliates－

12

Others15

18

Non-operating expenses

Total non-operating expenses

287

301

Ordinary income (loss)

4,647

1,845

8

(Millions of yen)
Nine months ended
December 31, 2019

Nine months ended
December 31, 2018
(Apr. 1, 2018–December 31, 2018)(Apr. 1, 2019–December 31, 2019)

AmountAmountExtraordinary income
Gain on sales of noncurrent assets

26

38

Gain on sales of investment securities

－

1,428

Total extraordinary income

26

1,467

Extraordinary loss
Loss on sales of noncurrent assets

42

13

Loss on retirement of noncurrent assets

71

112

Loss on sales of investment securities－

382

Impairment loss

192－

Provision of allowance for doubtful accounts of golf club membership

11

0Surcharges

282

23

Total extraordinary loss

601

532

Income (loss) before income taxes

4,072

2,780

Income taxes-current

1,333

1,436

Income taxes-deferred

422

(341)

Total income taxes

1,755

1,094

Profit (loss)

2,317

1,685

Profit (loss) attributable to non-controlling interests

258

221

Profit (loss) attributable to owners of parent

2,058

1,463

9

(Quarterly consolidated statement of comprehensive income)(Millions of yen）
Nine months ended
December 31, 2019

Nine months ended
December 31, 2018
(Apr. 1, 2018–December 31, 2018)(Apr. 1, 2019–December 31, 2019)

AmountAmount
2,317

1,685

Valuation difference on available-for-sale securities

(632)

(410)

Foreign currency translation adjustment

(520)

(773)

Remeasurements of defined benefit plans, net of tax

(53)

(19)

(13)

2

Total other comprehensive income(1,220)(1,201)

Comprehensive income

1,096

484

Comprehensive income attributable to owners of the parent

913

368

Comprehensive income attributable to non-controlling interests

183

115

Profit (loss)
Other comprehensive income

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

10(3) Quarterly consolidated statements of cash flows(Millions of yen)
Nine months ended
December 31, 2019

Nine months ended
December 31, 2018
(Apr. 1, 2018–December 31, 2018)(Apr. 1, 2019–December 31, 2019)

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

4,072

2,780

Depreciation and amortization

4,576

4,486

Retirement benefit expenses

(77)

(28)

Increase(decrease) in net defined benefit liability

44

53

Increase (decrease) in provision for directors' retirement benefits01Increase (decrease) in allowance for doubtful accounts

15

(1)

Increase (decrease) in provision for bonuses

(652)

(597)

Increase (decrease) in provision for directors' bonuses

(33)

(58)

Increase (decrease) in provision for product warranties

60

(0)

Loss on retirement of noncurrent assets

71

112

Loss(gain) on sales of tangible fixed assets

16

(24)

Surcharges

282

23

Interest and dividends income

(278)

(208)

Interest expenses

188

232

Equity in (earnings) losses of affiliates

(150)

12

Impairment loss

192－

Decrease(increase) in notes and accounts receivable-trade

(436)

(238)

Decrease(increase) in inventories(685)(1,732)

Increase(decrease) in notes and accounts payable-trade

1,179(1,062)

Loss (gain) on sales of investment securities－(1,046)

Decrease(increase) in other current assets

(329)

248

Increase (decrease) in other current liabilities

233

301

Other, net

108

34

Subtotal

8,401

3,287

Interest and dividends income received

339

378

Interest expenses paid

(188)

(231)

Income taxes paid

(1,389)(1,367)

Surcharges paid

(738)

(258)

Net cash provided by (used in) operating activities

6,424

1,807

11

(Millions of yen)
Nine months ended
December 31, 2019

Nine months ended
December 31, 2018
(Apr. 1, 2018–December 31, 2018)(Apr. 1, 2019–December 31, 2019)

AmountAmountNet cash provided by (used in) investing activities(5,228)Purchase of tangible fixed assets(5,568)Proceeds from sales of tangible fixed assets

230

48

Purchase of intangible assets

－

(296)

Proceeds from sales of investment securities

－

5,707

Payments into time deposits

(33)

(22)

Proceeds from withdrawal of time deposits

30

331

Others(216)

31

Net cash provided by (used in) investing activities(5,217)

233

16

867

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

1,180

2,338

Repayment of long-term loans payable(1,338)(1,685)

Proceeds from share issuance to non-controlling shareholders

52－

Purchase of treasury stock(1)(1,356)

Cash dividends paid

(795)

(685)

Cash dividends paid to non-controlling shareholders

(102)

(168)

411

－

(34)

－

Others181(343)

Net cash provided by (used in) financing activities

Proceeds from changes in ownership interests in subsidiaries that do not
result in change in scope of consolidation
Payments from changes in ownership interests in subsidiaries that do not
result in change in scope of consolidation(430)(1,034)

Effect of exchange rate change on cash and cash equivalents

(149)

(338)

Net increase (decrease) in cash and cash equivalents

626

667

Cash and cash equivalents at beginning of period

11,965

13,826

Cash and cash equivalents at end of period

12,592

14,49412

(4) Notes to quarterly consolidated financial statements(Going concern assumptions)Not applicable(Notes in the event of significant changes in shareholders’ equity)
We acquired 373,500 treasury shares based on a resolution at the meeting of the board of directors held on June18, 2019, we acquired 282,800 treasury shares based on a resolution at the meeting of the board of directors heldon August 2, 2019, and we acquired 103,500 treasury shares based on a resolution at the meeting of the board of
directors held on August 22, 2019. As a result, in the current third quarter consolidated accumulative period, treasury
shares increased by 1,356 million yen and as of the end of the current third quarter consolidated accounting period,
treasury shares resulted in 2,257 million yen.
(Changes of accounting policy)
The consolidated overseas subsidiaries that applying International Financial Reporting Standards(IFRS) have been
applying IFRS No.16 “Lease” (January 13, 2016. Hereinafter referred to as “IFRS No.16”) from beginning of thefirst quarterly consolidated accounting period.
This has led to lessees post all leases as assets and liabilities on balance sheet in principle. The application of IFRS
No.16 is subject to the transitional accounting treatment. The consolidated overseas subsidiaries applies the method
for recognizing the cumulative effect of adoption of this standards at applying start date.
As a result, the end of the current third quarter consolidated accounting period, lease assets increased by 401 million
yen, lease obligations of current liabilities increased by 101 million yen, and lease obligations of noncurrent
liabilities increased by 305 million yen. The effect on profit and loss in the current third quarter consolidated
accumulative period is negligible.

13

(Segment information)
I Nine months ended December 31, 2018 (from April 1, 2018 to December 31, 2018)
1. Net sales and profit (loss) by reportable segments(Millions of yen)
Reportable segment

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

Asia

China

Total

Other
(Note 3)

3,228

13,714

15,478102,156

719

102,875

128

363

54

1,450

6,190

2,513

8,704

24,202
(28)

3,591
(927)

13,7691,981

16,9292,229

108,346
3,936

3,233
142

111,580
4,079

Japan

UnitedStatesEurope45,661

24,073

4,193
49,854682

Total

Note: 1. Our Group consists of the Company and these overseas corporations which are based on a manufacturing
and sales structure. As such, “Japan”, “the United States”, “Europe”, “Asia” and “China” are our fivereportable segments.
2. Major countries or regions belong to each reportable segment
Europe ··············· the Czech Republic, Russia, Germany
Asia ················· Thailand, Indonesia, Vietnam
3. “Other” comprises business operations that are not categorized as reportable segments and includes thebusiness activities of domestic subsidiaries, such as the transportation business.
2. Difference between total segment income (loss) for reportable segments and operating income on consolidated
statements of income, and details of the difference (reconciliation of the difference)(Millions of yen)
IncomeAmountTotal segment income
3,936
Income for “Other”
142
Intersegment eliminations
277
Operating income on consolidated statements of income
4,357
3. Impairment loss on noncurrent assets and goodwill, etc., by reportable segment(Significant impairment loss on noncurrent assets)
In the segment of “China,” we posted impairment losses of goodwill 192 million yen as an extraordinary loss.
(Significant change in goodwill amount)Not applicable(Significant gain on bargain purchase)
Not applicable14

II Nine months ended December 31, 2019 (from April 1, 2019 to December 31, 2019)
1. Net sales and profit (loss) by reportable segments(Millions of yen)
Reportable segment

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

Japan

UnitedStatesEurope42,76024,007

5,011

Other
(Note 3)

Total

Asia

China

Total

1,970

13,071

14,41696,225809

97,034

115

346

48

1294

6,814

2,420

9,235

47,771

24,122

2,316

13,11915,710103,040

3,229

106,270

(614)

(635)

(810)

1609

1917

1,466

116

1,582

Note: 1. Our Group consists of the Company and these overseas corporations which are based on a manufacturing
and sales structure. As such, “Japan”, “the United States”, “Europe”, “Asia” and “China” are our fivereportable segments.
2. Major countries or regions belong to each reportable segment
Europe ··············· the Czech Republic, Russia, Germany
Asia ················· Thailand, Indonesia, Vietnam
3. “Other” comprises business operations that are not categorized as reportable segments and includes thebusiness activities of domestic subsidiaries, such as the transportation business.
2. Difference between total segment income (loss) for reportable segments and operating income on consolidated
statements of income, and details of the difference (reconciliation of the difference)(Millions of yen)
IncomeAmountTotal segment income
1,466
Income for “Other”
116
Intersegment eliminations
275
Operating income on consolidated statements of income
1,857
3. Impairment loss on noncurrent assets and goodwill, etc., by reportable segment(Significant impairment loss on noncurrent assets)
Not applicable(Significant change in goodwill amount)Not applicable(Significant gain on bargain purchase)
Not applicable15

3. Supplementary information
Sales states (consolidated)(Millions of yen)
Nine months ended
December 31,2018

Nine months ended
December 31, 2019

(Apr. 1, 2018–December. 31, 2018)(Apr. 1, 2019–December.31, 2019)

Amount%Amount%

FY2018

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

AmountAmount%%For Automobile

73,296

71.3

72,482

74.6

-813

-1.1

97,77171.8

For Construction &Industrial machine

23,09322.4

19,76920.4-3,324-14.4

30,342

22.3

For Air conditioner

3,881

3.8

2,477

2.6

-1,403

-36.2

4,602

3.4

Other

2,603

2.5

2,305

2.4

-298

-11.5

3,408

2.5

102,875
100.0
97,034
Total
Notes: Amounts less than one million yen have been truncated.

100.0-5,840-5.7

136,125100.0

16