[Delayed]Summary of Consolidated Financial Results for the Six Months Ended September 30,2021(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 Six Months Ended September 30, 2021 (Based on Japanese GAAP)

November 11, 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 to file Quarterly Securities Report:

November 12, 2021

Scheduled date to commence dividend payments:

-

Preparation of supplementary material on quarterly financial results:

Yes

Holding of quarterly financial results meeting:

No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended September 30, 2021 (from April 1, 2021 to September 30, 2021)

(1) Consolidated operating results (cumulative)

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

%

Six months ended September 30, 2021

30,657

-

1,613

-

1,904

-

1,142

-

Six months ended September 30, 2020

20,178

(1.6)

1,056

43.2

1,164

21.9

736

7.9

Earnings per share

Diluted earnings per share

Yen

Yen

Six months ended September 30, 2021

139.68

-

Six months ended September 30, 2020

87.14

-

(Note)From the beginning of the 1st quarter of the current fiscal year ending March 31, 2022, the Company has applied "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29). The figures for the 2nd quarter of the current fiscal year above include the effects of the said standards. Accordingly, percentages of changes from the same period of the previous fiscal year are not indicated.

(2) Consolidated financial position

	Total assets	Net assets	Equity ratio	Net assets per share
	Millions of yen	Millions of yen	%	Yen
As of September 30, 2021	59,605	36,619	61.4	4,477.66
As of March 31, 2021	58,764	36,484	62.1	4,461.06

(Note) From the beginning of the 1st quarter of the current fiscal year ending March 31, 2022, the Company has applied "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29). The figures for the 2nd quarter of the current fiscal year above include the effects

of the said standards. 2. Cash dividends

		Annual dividends per share
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
	Yen	Yen	Yen	Yen	Yen
Year ended March 31, 2021	-	0.00	-	115.00	115.00
Year ending March 31, 2022	-	0.00
Year ending March 31, 2022 (Forecast)			-	105.00	105.00

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

1

4. Notes

1. Changes in significant subsidiaries during the six months ended September 30, 2021 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

No

(3) 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:	Yes
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

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

	As of September 30, 2021	9,323,074	shares	As of March 31, 2021	9,323,074	shares
Number of treasury shares at the end of the period
	As of September 30, 2021	1,145,368	shares	As of March 31, 2021	1,144,747	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended September 30, 2021	8,178,051	shares	Six months ended September 30, 2020	8,448,831	shares

2

Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2021	As of September 30, 2021
Assets
Current assets
Cash and deposits	7,413	8,042
Notes and accounts receivable - trade, and contract assets	13,489	19,457
Investments in leases	550	376
Merchandise and finished goods	57	52
Work in process	6,732	860
Raw materials and supplies	2,523	2,169
Other	863	791
Allowance for doubtful accounts	(13)	(16)
Total current assets	31,616	31,733
Non-current assets
Property, plant and equipment
Buildings and structures, net	4,142	4,168
Machinery, equipment and vehicles, net	716	765
Tools, furniture and fixtures, net	284	368
Land	10,122	10,372
Construction in progress	356	500
Other, net	18	37
Total property, plant and equipment	15,641	16,213
Intangible assets	481	598
Investments and other assets
Investment securities	9,909	9,792
Deferred tax assets	42	188
Retirement benefit asset	452	447
Other	847	858
Allowance for doubtful accounts	(227)	(226)
Total investments and other assets	11,024	11,060
Total non-current assets	27,147	27,871
Total assets		58,764	59,605

3

			(Millions of yen)
		As of March 31, 2021	As of September 30, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	1,091	1,101
Short-term borrowings	3,620	4,620
Current portion of long-term borrowings	8	2
Accrued expenses	3,778	3,910
Income taxes payable	914	657
Contract liabilities	2,354	1,430
Provision for bonuses	259	408
Provision for loss on order received	30	-
Provision for warranties for completed construction	348	297
Other	681	883
Total current liabilities	13,086	13,311
Non-current liabilities
Bonds payable	1,000	1,000
Long-term borrowings	4,580	4,580
Deferred tax liabilities	2,138	2,199
Deferred tax liabilities for land revaluation	1,095	1,095
Retirement benefit liability	107	390
Asset retirement obligations	230	310
Other	41	98
Total non-current liabilities	9,193	9,674
Total liabilities	22,280	22,986
Net assets
Shareholders' equity
Share capital	18,580	18,580
Capital surplus	1,273	1,273
Retained earnings	16,148	16,341
Treasury shares	(2,933)	(2,935)
Total shareholders' equity	33,068	33,259
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	3,937	3,872
Deferred gains or losses on hedges	9	3
Revaluation reserve for land	106	106
Foreign currency translation adjustment	(833)	(819)
Remeasurements of defined benefit plans	195	194
Total accumulated other comprehensive income	3,415	3,357
Non-controlling interests	0	2
Total net assets	36,484	36,619
Total liabilities and net assets		58,764	59,605

4

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

		(Millions of yen)
	Six months ended	Six months ended
	September 30, 2020	September 30, 2021
Net sales	20,178	30,657
Cost of sales	15,863	25,461
Gross profit	4,315	5,195
Selling, general and administrative expenses	3,258	3,582
Operating profit	1,056	1,613
Non-operating income
Interest income	8	3
Dividend income	183	194
Foreign exchange gains	-	37
Gain on sale of scraps	6	33
Other	33	54
Total non-operating income	232	323
Non-operating expenses
Interest expenses	33	29
Foreign exchange losses	70	-
Other	21	2
Total non-operating expenses	125	32
Ordinary profit	1,164	1,904
Extraordinary income
Gain on sale of membership	-	9
Other	0	0
Total extraordinary income	0	9
Extraordinary losses
Loss on valuation of investment securities	21	90
Loss on disaster	9	-
Other	2	0
Total extraordinary losses	33	91
Profit before income taxes	1,130	1,822
Income taxes - current	373	607
Income taxes - deferred	21	73
Total income taxes	394	681
Profit	736	1,141
Profit attributable to
Profit attributable to owners of parent	736	1,142
Loss attributable to non-controlling interests	(0)	(0)
Other comprehensive income
Valuation difference on available-for-sale securities	1,395	(65)
Deferred gains or losses on hedges	8	(5)
Foreign currency translation adjustment	(52)	14
Remeasurements of defined benefit plans, net of tax	51	(0)
Total other comprehensive income	1,403	(57)
Comprehensive income	2,139	1,083
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	2,139	1,084
Comprehensive income attributable to non-controlling interests	(0)	(0)

5