TOTO : Summary of Consolidated Financial Results for the Six Months Ended September 30,2022

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, 2022 (Based on Japanese GAAP)

				October 28, 2022
Company name:	TOTO Ltd.
Stock exchange listing: Tokyo, Nagoya, Fukuoka
Stock code:	5332	URL https://jp.toto.com
Representative:	President & Representative Director	Noriaki Kiyota
Inquiries:	General Manager Management Planning	Yasuo Hirai	TEL [phone]
Dept.
Scheduled date to file Quarterly Securities Report:	November 7, 2022
Scheduled date to commence dividend payments:	December 1, 2022
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	Yes

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended September 30, 2022 (from April 1, 2022 to September 30, 2022)
(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, 2022	327,688		5.9		20,649		(22.4)	28,945		2.8	18,852	(5.1)
Six months ended September 30, 2021	309,506		20.7		26,613		173.1	28,145		180.2	19,868	351.8
	Earnings per share			Diluted earnings per share
				Yen			Yen
Six months ended September 30, 2022			111.19				111.09
Six months ended September 30, 2021			117.22				117.09
(2) Consolidated financial position
	Total assets				Net assets		Equity ratio
	Millions of yen			Millions of yen				%
As of September 30, 2022	723,778		449,149				60.9
As of March 31, 2022	641,025		413,372				63.2

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, 2022	-	45.00	-	50.00	95.00
Year ending March 31, 2023	-	50.00
Year ending March 31, 2023 (Forecast)			-	50.00	100.00

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

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	717,000	11.1	54,000		3.5	61,500		8.1	42,000		4.7	247.68

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4. Notes

1. Changes in significant subsidiaries during the six months ended September 30, 2022 (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, 2022	176,981,297	shares	As of March 31, 2022	176,981,297	shares
Number of treasury shares at the end of the period
	As of September 30, 2022	7,408,271	shares	As of March 31, 2022	7,434,187	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended September 30, 2022	169,560,020	shares	Six months ended September 30, 2021	169,495,623	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2022	As of September 30, 2022
Assets
Current assets
Cash and deposits	90,536	111,923
Notes and accounts receivable - trade, and contract assets	94,802	100,690
Merchandise and finished goods	73,440	92,788
Work in process	14,167	17,592
Raw materials and supplies	21,847	27,238
Other	13,043	14,271
Allowance for doubtful accounts	(213)	(248)
Total current assets	307,623	364,256
Non-current assets
Property, plant and equipment
Buildings and structures, net	90,759	95,914
Machinery, equipment and vehicles, net	79,727	83,451
Land	26,918	27,149
Other, net	34,412	41,220
Total property, plant and equipment	231,818	247,735
Intangible assets	24,043	28,002
Investments and other assets
Investment securities	54,384	56,813
Other	23,367	27,169
Allowance for doubtful accounts	(211)	(199)
Total investments and other assets	77,539	83,783
Total non-current assets	333,401	359,521
Total assets		641,025	723,778

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			(Millions of yen)
		As of March 31, 2022	As of September 30, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade	78,521	84,079
Short-term borrowings	23,714	23,277
Income taxes payable	5,533	5,555
Provision for bonuses for directors (and other officers)	290	105
Accrual for loss on inspection and repair of products	224	481
Provision for loss on business restructuring	189	189
Other	90,997	127,344
Total current liabilities	199,471	241,033
Non-current liabilities
Long-term borrowings	1,124	1,750
Retirement benefit liability	21,734	22,062
Other	5,322	9,783
Total non-current liabilities	28,181	33,595
Total liabilities	227,652	274,629
Net assets
Shareholders' equity
Share capital	35,579	35,579
Capital surplus	29,381	29,443
Retained earnings	322,980	333,356
Treasury shares	(13,793)	(13,747)
Total shareholders' equity	374,147	384,631
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	13,675	14,655
Foreign currency translation adjustment	15,735	39,201
Remeasurements of defined benefit plans	1,888	2,090
Total accumulated other comprehensive income	31,299	55,947
Share acquisition rights	287	286
Non-controlling interests	7,637	8,284
Total net assets	413,372	449,149
Total liabilities and net assets		641,025	723,778

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

Consolidated statements of income (cumulative)

			(Millions of yen)
		Six months ended	Six months ended
		September 30, 2021	September 30, 2022
Net sales	309,506	327,688
Cost of sales	197,559	212,811
Gross profit	111,947	114,877
Selling, general and administrative expenses	85,334	94,227
Operating profit	26,613	20,649
Non-operating income
Interest income	408	469
Dividend income	1,017	1,207
Share of profit of entities accounted for using equity method	-	279
Foreign exchange gains	446	6,801
Other	491	498
Total non-operating income	2,364	9,256
Non-operating expenses
Interest expenses	61	89
Loss on retirement of non-current assets	365	324
Share of loss of entities accounted for using equity method	74	-
Loss on inspection and repair of products	-	200
Other	331	346
Total non-operating expenses	832	961
Ordinary profit	28,145	28,945
Extraordinary income
Gain on sales of land and others	17	-
Gain on sale of investment securities	997	48
Gain on sale of membership	50	-
Total extraordinary income	1,065	48
Extraordinary losses
Loss on sales of land and others	0	-
Loss on valuation of investment securities	13	-
Restructuring expenses	-	75
Loss related to COVID-19	-	1,462
Total extraordinary losses	14	1,537
Profit before income taxes	29,196	27,456
Income taxes - current	8,093	7,190
Income taxes - deferred	869	1,423
Total income taxes	8,962	8,614
Profit	20,233	18,842
Profit (loss) attributable to non-controlling interests	365	(10)
Profit attributable to owners of parent		19,868	18,852

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