Toyo Kanetsu K K : Summary of Consolidated Financial Results for the Year Ended March 31,2021(Based on Japanese GAAP)

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results

for the Year Ended March 31, 2021

(Based on Japanese GAAP)

																		May 14, 2021
Company name:	TOYO KANETSU K.K.
Stock exchange listing:	Tokyo
Stock code:	6369	URL https://www.toyokanetsu.co.jp
Representative:	President and Representative Director	Toru Yanagawa
Inquiries:	Managing Officer		Takeshi Yonehara	TEL [phone]
Scheduled date of ordinary general meeting of shareholders:	June 29, 2021
Scheduled date to file Securities Report:		June 29, 2021
Scheduled date to commence dividend payments:		June 30, 2021
Preparation of supplementary material on financial results:		Yes
Holding of financial results meeting:					Yes	(for institutional investors and analysts)
										(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)
(1) Consolidated operating results											Percentages indicate year-on-year changes
		Net sales		Operating profit	Ordinary profit	Profit attributable to
			owners of parent
		Millions of yen		%	Millions of yen		%	Millions of yen	%	Millions of yen		%
Year ended March 31, 2021	43,617		(6.2)	2,623		1.2		3,053	2.8	1,777		3.5
Year ended March 31, 2020	46,518		2.9	2,591		84.3		2,970	67.7	1,717		67.5
		Earnings per share	Diluted earnings per	Profit attributable to		Ordinary profit/total	Operating profit/net
			share			owners of				assets				sales
								parent/equity
			Yen		Yen				%					%					%
Year ended March 31, 2021	212.41			-				5.0					5.1					6.0
Year ended March 31, 2020	195.87			-				4.9					4.7					5.6
(2) Consolidated financial position
		Total assets		Net assets		Equity ratio	Net assets per share
		Millions of yen	Millions of yen					%						Yen
As of March 31, 2021		58,764					36,484					62.1				4,461.06
As of March 31, 2020		60,985					34,602					56.7				4,095.51
(3) Consolidated cash flows
		Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
		operating activities	investing activities	financing activities		at end of period
		Millions of yen	Millions of yen	Millions of yen		Millions of yen
Year ended March 31, 2021	1,482					(338)					(5,176)						7,309
Year ended March 31, 2020	6,955					(812)					(2,351)						11,402
2. Cash dividends
					Annual dividends per share					Total cash	Dividend payout		Ratio of dividends
															to net assets
		1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total			dividends (Total)	ratio (Consolidated)	(Consolidated)
		Yen		Yen	Yen				Yen	Yen	Millions of yen	%				%
Year ended March 31, 2020	-		0.00	-				100.00	100.00		853	51.1				2.5
Year ended March 31, 2021	-		0.00	-				115.00	115.00		949	54.1				2.7
Year ending March 31, 2022	-			0.00	-				105.00	105.00			50.2
(Forecast)

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3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit		Profit attributable to	Earnings per share
			owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	54,700	25.4	2,370	(9.7)	2,670	(12.5)		1,750	(1.6)	209.12
4. Notes
(1) Changes in significant subsidiaries during the year ended March 31, 2021			No
(changes in specified subsidiaries resulting in the change in scope of consolidation):
(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:	No
Changes in accounting policies due to other reasons:					No
Changes in accounting estimates:							No
Restatement of prior period financial statements:					No

(3) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of March 31, 2021	9,323,074	shares	As of March 31, 2020	9,323,074	shares
Number of treasury shares at the end of the period
	As of March 31, 2021	1,144,747	shares	As of March 31, 2020	874,440	shares
Average number of shares during the period
	Year ended March 31, 2021	8,368,557	shares	Year ended March 31, 2020	8,770,801	shares

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Consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2020	As of March 31, 2021
Assets
Current assets
Cash and deposits	11,507	7,413
Notes and accounts receivable - trade	15,413	13,489
Investments in leases	937	550
Merchandise and finished goods	27	57
Work in process	5,179	6,732
Raw materials and supplies	1,977	2,523
Other	435	863
Allowance for doubtful accounts	(16)	(13)
Total current assets	35,461	31,616
Non-current assets
Property, plant and equipment
Buildings and structures, net	4,218	4,142
Machinery, equipment and vehicles, net	1,016	716
Tools, furniture and fixtures, net	364	284
Land	10,568	10,122
Construction in progress	253	356
Other, net	20	18
Total property, plant and equipment	16,442	15,641
Intangible assets	381	481
Investments and other assets
Investment securities	8,013	9,909
Deferred tax assets	45	42
Retirement benefit asset	38	452
Other	889	847
Allowance for doubtful accounts	(286)	(227)
Total investments and other assets	8,699	11,024
Total non-current assets	25,523	27,147
Total assets		60,985	58,764

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			(Millions of yen)
		As of March 31, 2020	As of March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	919	1,091
Short-term borrowings	7,849	3,620
Current portion of long-term borrowings	619	8
Accrued expenses	4,763	3,778
Income taxes payable	553	914
Advances received	2,790	2,354
Provision for bonuses	267	259
Provision for loss on order received	241	30
Provision for warranties for completed construction	389	348
Other	455	681
Total current liabilities	18,848	13,086
Non-current liabilities
Bonds payable	-	1,000
Long-term borrowings	4,488	4,580
Deferred tax liabilities	1,520	2,138
Deferred tax liabilities for land revaluation	1,095	1,095
Retirement benefit liability	152	107
Asset retirement obligations	235	230
Other	40	41
Total non-current liabilities	7,534	9,193
Total liabilities	26,382	22,280
Net assets
Shareholders' equity
Share capital	18,580	18,580
Capital surplus	1,273	1,273
Retained earnings	15,224	16,148
Treasury shares	(2,355)	(2,933)
Total shareholders' equity	32,722	33,068
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	2,666	3,937
Deferred gains or losses on hedges	0	9
Revaluation reserve for land	106	106
Foreign currency translation adjustment	(729)	(833)
Remeasurements of defined benefit plans	(165)	195
Total accumulated other comprehensive income	1,878	3,415
Non-controlling interests	1	0
Total net assets	34,602	36,484
Total liabilities and net assets		60,985	58,764

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Consolidated statements of income and consolidated statements of comprehensive income

			(Millions of yen)
		Fiscal year ended	Fiscal year ended
		March 31, 2020	March 31, 2021
Net sales	46,518	43,617
Cost of sales	37,355	34,369
Gross profit	9,162	9,247
Selling, general and administrative expenses	6,570	6,623
Operating profit	2,591	2,623
Non-operating income
Interest income	9	14
Dividend income	277	259
Foreign exchange gains	5	-
Subsidy income	34	104
Reversal of allowance for doubtful accounts	0	84
Other	125	113
Total non-operating income	452	576
Non-operating expenses
Interest expenses	59	59
Bond issuance costs	-	23
Commission for purchase of treasury shares	1	17
Foreign exchange losses	-	37
Other	13	11
Total non-operating expenses	74	147
Ordinary profit	2,970	3,053
Extraordinary income
Gain on sale of non-current assets	0	9
Gain on sale of investment securities	578	913
Other	-	65
Total extraordinary income	579	989
Extraordinary losses
Loss on valuation of investment securities	673	73
Impairment losses	-	1,047
Loss on disaster	39	13
Other	48	15
Total extraordinary losses	761	1,149
Profit before income taxes	2,788	2,892
Income taxes - current	759	1,199
Income taxes - deferred	311	(83)
Total income taxes		1,070	1,115

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