Toyo Engineering : Summary of Financial Results for the first quarter 2022

The document is an English-language translation of the consolidated financial summary of the financial results for the first quarter ended June 30, 2021. This

summary was prepared originally in Japanese in accordance with generally accepted accounting principles in Japan. If there are discrepancies between this summary and the original document in Japanese, the Japanese version will take precedence.

Consolidated Financial Results for the First Quarter ended June 30, 2021

For the Fiscal Year Ending March 31, 2022August 12, 2021

TOYO ENGINEERING CORPORATION

(URL : https://www.toyo-eng.com/)
Representative: Haruo Nagamatsu, President and Chief Executive Officer,
Contact: Takeshi Yamato, General Manager of Accounting Dept.	TEL [phone]

1. Business results for the first quarter of fiscal year 2021 (April 1, 2021 - June 30, 2021)

							Note: Amounts are rounded down to the nearest million yen.
(1) Consolidated operating results					(% of changes from the corresponding period of the previous fiscal year)
	Net sales				Operating income	Ordinary income		Profit attributable to
					owners of parent
	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%
Apr. 1, 2021 - Jun. 30, 2021	53,993		22.6		1,823	224.3	1,834	－	947	－
Apr. 1, 2020 - Jun. 30, 2020	44,045	(24.6)		562	(71.7)	60	(96.0)	(246)	－
(Reference) Comprehensive income (millions of yen):			－%
	Apr. 1, 2021 - Jun. 30, 2021 : 1,233	Apr. 1, 2020 - Jun. 30, 2020: (2,468)	－%
	Net income		Net income per share
	per share			(diluted)
		Yen			Yen
Apr. 1, 2021 - Jun. 30, 2021	16.17				－
Apr. 1, 2020 - Jun. 30, 2020	(4.21)				－

(Note) 1. Since the rate of change in ordinary income for the first quarter of fiscal year ending March 31, 2022 is over 1000%, "-" is indicated.

1. 2. Upon calculation of "Net income per share", the number of class A preferred stocks which were issued in March 2019 is included.

2. Consolidated financial position

	Total assets		Total net assets	Equity ratio
	Millions of yen		Millions of yen	%
As of Jun. 30, 2021	221,745		41,311	18.6
As of Mar. 31, 2021	218,255		40,077	18.3
(Reference) Equity at the end of	period (millions of yen):
	Jun. 30, 2021: 41,169	Mar. 31, 2021: 39,935

2. Dividends

					Cash dividends per share
	Q1		Q2			Q3	Q4		Annual
FY2020	－	Yen	0.00	Yen	－	Yen	0.00	Yen	0.00	Yen
FY2021	－	Yen
FY2021			0.00	Yen	－	Yen	0.00	Yen	0.00	Yen
(Forecast)
(Note) Revision of forecast for this period: No

3. Forecast of consolidated operating results for the fiscal year ended March 31, 2022 (April 1, 2021 - March 31, 2022)

(% of changes from the corresponding periods of the previous year)

	Net sales		Operating income	Ordinary income	Profit attributable to	Net income per share
		owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	240,000	30.4	2,500	54.7	2,500	(10.1)	1,500	84.1	25.60

(Note) Revision of forecast for this period: No

(Note) Upon calculation of "Net income per share", the number of class A preferred stocks which were issued in March 2019 is included.

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4. Others
(1)	Significant changes in scope of consolidation	: No
(2)	Number of shares issued (common shares)
Number of shares issued at end of period (including treasury stocks)
	Jun. 30, 2021 :	38,558,507	Mar. 31, 2021 :	38,558,507
Number of treasury stocks at end of period
	Jun. 30, 2021 :	226,299	Mar. 31, 2021 :	226,161
Average number of stock outstanding during the period: First quarter of FY2021 and FY2020
	First quarter of FY2021 :	38,332,289	First quarter of FY2020 :	38,333,005

(Note) The number of class A preferred stocks is not included in the number of shares issued.

* Reference: The forecast given above are based on information available at the time of compilation and are inherently subject to variety of risks and uncertainties. Actual results may vary significantly from the forecast due to factors including, but not limited to, changes in the economic or business environment and exchange rate fluctuations.

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Consolidated Balance Sheets

			March 31, 2021	June 30, 2021
			Millions of yen	Millions of yen
		[Assets]
I	Current assets
	1	Cash and deposits	97,609	93,521
	2	Notes receivable, accounts receivable from completed construction	51,069	58,821
	contracts and other
	3	Costs on uncompleted construction contracts	18,475	17,296
	4	Accounts receivable - other	4,218	5,984
	5	Deposits paid	5,005	3,862
	6	Forward exchange contracts	2,393	2,129
	7	Other	16,715	16,726
	8	Allowance for doubtful accounts	(1,114)	(1,116)
		Total current assets		194,373		197,227

1. Non-currentassets
2. 1. Property, plant and equipment

1	Buildings and structures	14,428	14,471
2	Machinery, vehicles, tools, furniture and fixtures	5,190	5,197
3	Land	6,209	6,244
4	Leased assets	1,913	1,922
5	Construction in progress	27	24
6	Accumulated depreciation and impairment loss	(16,131)	(16,349)
	Total property, plant and equipment	11,638		11,512
(2) Intangible assets
1 Other	1,792	2,243
	Total intangible assets	1,792		2,243

1. Investments and other assets

		1	Investment securities	2,658	2,603
		2	Long-term loans receivable	4,602	4,600
		3	Net defined benefit asset	3,391	3,471
		4 Deferred income taxes	526	537
		5	Other	3,829	4,087
		6	Allowance for doubtful accounts	(4,557)	(4,538)
			Total investments and other assets	10,450		10,761
			Total non-current assets	23,881		24,517
			Total assets	218,255		221,745
			[Liabilities]
I	Current liabilities
	1	Notes payable, accounts payable for construction contracts and other	72,555	71,373
	2	Short-term loans payable	10,613	9,658
	3	Income taxes payable	693	750
	4	Advances received on uncompleted construction contracts	61,138	59,797
	5	Provision for bonuses	533	370
	6	Provision for warranties for completed construction	18	19
	7	Provision for loss on construction contracts	359	125
	8	Provision for loss on guarantees	45	45
	9	Forward exchange contracts	156	73
	10	Other	7,078	13,305
			Total current liabilities	153,193		155,520
II	Non-current liabilities
	1	Long-term loans payable	16,419	16,228
	2	Lease obligations	718	644
	3	Deferred income taxes	4,309	4,267
	4	Net defined benefit liability	1,213	1,251
	5	Provision for losses on business of subsidiaries and affiliates	389	399
	6	Other	1,934	2,120
			Total non-current liabilities	24,984		24,913
			Total liabilities	178,177		180,433
			[Net Assets]
I	Shareholders' equity
	1	Capital stock	18,198	18,198
	2	Capital surplus	4,567	4,567
	3	Retained earnings	14,677	15,624
	4	Treasury stock, at cost	(446)	(446)
			Total shareholders' equity	36,997		37,944
II	Accumulated other comprehensive income
	1	Valuation difference on available-for-sale securities	(128)	(136)
	2	Deferred gains on hedges	1,495	1,327
	3	Foreign currency translation adjustments	(525)	14
	4	Remeasurements of defined benefit plans	2,096	2,019
			Total accumulated other comprehensive income	2,938		3,225
III	Non-controlling interests	142	141
			Total net assets	40,077		41,311
			Total liabilities and net assets	218,255		221,745

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Consolidated Statements of Operations

		April 1, 2020 -	April 1, 2021 -
		June 30, 2020	June 30, 2021
		Millions of yen	Millions of yen
I	Net sales		44,045		53,993
II	Cost of sales		39,625		47,904
	Gross profit		4,420		6,089
III	Selling, general and administrative expenses		3,857		4,266
	Operating income		562		1,823
IV	Non-operating income
1	Interest income	174		125
2	Dividends income	25		23
3	Equity in earnings of affiliates	225		-
4	Reversal of allowance for doubtful accounts	1		18
5	Miscellaneous income	75	502	91	259
V	Non-operating expenses
1	Interest expenses	117		88
2	Equity in losses of affiliates	-		63
3	Foreign exchange losses, net	817		68
4	Miscellaneous expenses	69	1,004	27	249
	Ordinary income		60		1,834
	Profit before income taxes		60		1,834
VI	Income taxes
1	Income taxes	306	306	885	885
	Net (loss) profit		(245)		948
	Net (loss) profit attributable to non-controlling interests		0		1
	Net (loss) profit attributable to owners of parent		(246)		947

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Consolidated Statements of Comprehensive Income (Loss)

		April 1, 2020 -	April 1, 2021 -
		June 30, 2020	June 30, 2021
		Millions of yen	Millions of yen
I	Net (loss) profit	(245)	948

• Other comprehensive (loss) income

1	Valuation difference on available-for-sale securities	58		(7)
2	Deferred gains (losses) on hedges	447		(168)
3	Foreign currency translation adjustments	(1,232)		717
4	Remeasurements of defined benefit plans	(12)		(77)
5	Share of other comprehensive loss of affiliates	(1,484)	(2,222)	(179)	285
	accounted for by the equity method
	Comprehensive (loss) income		(2,468)		1,233
	Comprehensive (loss) income attributable to :
	Owners of parent		(2,469)		1,234
	Non-controlling interests		0		(0)

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