東洋エンジニアリング（6330） – Summary of Financial Results 2022

The document is an English-language translation of the consolidated financial summary of the financial results for the fiscal year ended March 31, 2022. This summarywas prepared originally in Japanese in accordance with generally accepted accounting principles in Japan. If there are discrepancies between this summary and the originaldocument in Japanese, the Japanese version will take precedence.Consolidated Financial Results for the Fiscal Year Ended March 31, 2022May 12, 2022TOYO ENGINEERING CORPORATION (URL : https://www.toyo-eng.com/jp/)Representative: Haruo Nagamatsu, President and Chief Executive Officer, Contact: Takeshi Yamato, General Manager of Accounting Dept.TEL +81-47-454-15211. Business results for the fiscal year ended March 31, 2022 (April 1, 2021 – March 31, 2022)(1) Consolidated operating resultsNote: Amounts are rounded down to the nearest million yen.(% of changes from the corresponding period of the previous fiscal year)Net salesOperating income Ordinary income Profit attributable toowners of parentFY2021FY2020Millions of yenMillions of yenMillions of yenMillions of yen202,986184,000%10.3(16.0)2,9631,615%83.4(14.6)3,1262,781%12.412.71,620814%98.9(51.0)(Reference) Comprehensive income (millions of yen):FY2021 : 4,4859.5%FY2020:4,097－%Net incomeper shareNet income per share(diluted)Return on equityOrdinary incometo total assetsOperating incometo net salesFY2021FY202027.6513.91－－3.82.21.41.31.50.9YenYen%%%(Reference) Equity in earnings of affiliates (millions of yen):FY2021 : (240)FY2020 : 632(Note) 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 positionTotal assetsTotal net assetsEquity ratioBook value per shareMillions of yenMillions of yen%YenFY2021FY2020240,853218,25544,56240,07718.418.3766.81650.52(Reference) Equity at the end of period (millions of yen):FY2021 : 44,393FY2020 : 39,935(Note) Upon calculation of “Book value per share”, Residual assets attributable to class A preferred stocks is deducted from total net assets.(3) Consolidated cash flowsFY2021FY20202. DividendsFY2020FY2021FY2022(Forecast)Cash flows from operatingactivitiesCash flows from investingactivitiesCash flows from financingactivitiesCash and cash equivalents, end ofthe yearMillions of yenMillions of yenMillions of yenMillions of yen(6,790)17,753(7,851)(2,712)7,608(451)89,80094,483YenYenYenYenYenMillions of yen%%Cash dividends per shareQ20.000.000.00Q3－－－Q4Annual0.000.000.000.000.000.00Total Cashdividends(Annual)Payout ratio(Consolidated)Cash dividendsas a percentageof net assets(Consolidated)－－－－－－－Q1－－－3. Forecast of consolidated operating results for the fiscal year ended March 31, 2023 (April 1, 2022 – March 31, 2023)Net salesOperating incomeOrdinary incomeNet income per share(% of changes from the corresponding periods of the previous year)Full yearMillions of yen210,000%3.5Millions of yen2,000% Millions of yen2,500(32.5)%(20.0)Yen25.60(Note) Upon calculation of “Net income per share”, the number of class A preferred stocks which were issued in March 2019 is included.Profit attributable toowners of parentMillions of yen1,500%(7.4)-1-4. 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)FY2021 : 38,558,507 Number of treasury stocks at end of termFY2021 : 227,058 Average number of stock outstanding during the period: FY2021 and FY2020FY2021 : 38,331,972(Note)The number of class A preferred stocks is not included in the number of shares issued.(Reference) Non-consolidated business resultsFY2020 : 38,558,507FY2020 : 226,161FY2020 : 38,332,7721. Business results for the fiscal year ended March 31, 2022 (April 1, 2021 – March 31, 2022)(1) Non-consolidated operating resultsNotes: Amounts are rounded down to the nearest million yen.(% of changes from the corresponding period of the previous year)Net salesOperating income Ordinary income Net incomeMillions of yenMillions of yenMillions of yenMillions of yen996(615)%－－1,014(512)%－－FY2021FY2020FY2021FY2020%(1.3)(24.3)Yen100,109101,416Net incomeper share17.30(8.75)%－－YenNet income per share(diluted)260(1,045)－－(2) Non-consolidated financial positionTotal assetsNet assetsEquity ratioBook value per shareMillions of yenMillions of yen%YenFY2021FY2020164,518148,37112,40410,7717.57.3(67.71)(110.32)(Reference) Equity at the end of term (millions of yen):FY2021 : 12,404FY2020 : 10,771(Note)Upon calculation of “Book value per share”, Residual assets attributable to class A preferred stocks is deducted from total net assets.* Reference: This document is not reviewed by certified public accountants nor auditors.* Reference: The forecast given above are based on information available at the time of compilation and are inherently subjectto 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.-2-Consolidated Balance SheetsMarch 31, 2021March 31, 2022Millions of yenMillions of yen[Assets]ICurrent assets1Cash and depositsNotes receivable, accounts receivable from completed constructioncontracts and other2Accounts receivable – other3 Costs on uncompleted construction contracts45 Deposits paid67 Other 8Allowance for doubtful accountsForward exchange contractsTotal current assetsIINon-current assets(1)Property, plant and equipment1 Buildings and structures2 Machinery, vehicles, tools, furniture and fixtures3 Land4 Leased assets5 Construction in progress6 Accumulated depreciation and impairment lossTotal property, plant and equipment(2)Intangible assets1 Other(3)Total intangible assetsInvestments and other assets1 Investment securities2 Long-term loans receivable3 Net defined benefit asset4 Deferred income taxes5 Other 6 Allowance for doubtful accountsTotal investments and other assetsTotal non-current assetsTotal assets[Liabilities]Current liabilities12345678910Notes payable, accounts payable for construction contracts and otherShort-term loans payableIncome taxes payableAdvances received on uncompleted construction contractsProvision for bonusesProvision for warranties for completed constructionProvision for loss on construction contractsProvision for loss on guaranteesForward exchange contractsOther Provision for losses on business of subsidiaries and affiliatesOtherTotal current liabilitiesNon-current liabilitiesLong-term loans payable1Lease obligations23 Deferred income taxes4 Net defined benefit liability56Total non-current liabilitiesTotal liabilities[Net Assets]Shareholders’ equity1 Capital stock2 Capital surplus3 Retained earnings4Treasury stock, at costIIIIIITotal shareholders’ equityAccumulated other comprehensive income1 Valuation difference on available-for-sale securities2 Deferred gains on hedges3Foreign currency translation adjustments4 Remeasurements of defined benefit plansTotal accumulated other comprehensive incomeIII Non-controlling interestsTotal net assets Total liabilities and net assets97,60951,06918,4754,2185,0052,39316,715(1,114)194,37314,4285,1906,2091,91327(16,131)11,6381,7921,7922,6584,6023,3915263,829(4,557)10,45023,881218,25572,55510,61369361,13853318359451567,078153,19316,4197184,3091,2133891,93424,984178,17718,1984,56714,677(446)36,997(128)1,495(525)2,0962,93814240,077218,25592,15369,71619,7584,9857,1502,81311,447(1,221)206,80514,6375,3796,3282,336148(16,969)11,8613,4883,4882,6954,5984,65955210,710(4,516)18,69934,048240,85372,5917,49932260,92558826133-29316,888159,26828,0885804,9168763962,16437,022196,29018,1984,56716,297(446)38,617(5)1,9971,3322,4515,77516944,562240,853-3-Consolidated Statements of Income IIINet salesCost of salesIIISelling, general and administrative expensesGross profitOperating incomeIVNon-operating income1 Interest income2 Dividends income3 Foreign exchange gains, net4 Equity in earnings of affiliates 6 Miscellaneous incomeVNon-operating expenses1 Interest expenses2 Equity in losses of affiliates5 Subisidies for employment adjustment and other3 Loss on valuation of investments securities4 Miscellaneous expensesVIIncome taxes1 Income taxes2 Income taxes-deferredOrdinary incomeProfit before income taxesNet profit attributable to non-controlling interestsNet profit attributable to owners of parentNet profitApril 1, 2020 -March 31, 2021April 1, 2021 -March 31, 2022Millions of yenMillions of yen184,000165,44318,55716,9411,615202,986182,14720,83817,8752,963613221285632110275421-15539665946271-125153476240-3762,1401,2561,6862651,2822059732,7812,7811,952829148141,0933,1263,1261,4881,638171,620-4-Consolidated Statements of Comprehensive Income Net profitIⅡOther comprehensive incomeApril 1, 2020 -March 31, 2021April 1, 2021 -March 31, 2022Millions of yenMillions of yen8291,6381 Valuation difference on available-for-sale securities2 Deferred gains on hedges3 Foreign currency translation adjustments4 Remeasurements of defined benefit plans2972,260(462)2,9171235011,7673545Share of other comprehensive (loss) income of affiliatesaccounted for by the equity method(1,744)3,2681002,847Comprehensive income4,0974,485Comprehensive income attributable to : Owners of parent Non-controlling interests4,076204,45727-5-From April 1, 2020 through March 31, 2021Consolidated Statement of Changes in Net AssetsShareholders’ equityAccumulated other comprehensive incomeCapitalstockCapital surplusRetainedearningsTreasurystockTotalshareholders’equityValuationdifference onavailable-for-salesecuritiesDeferred (losses)gains on hedgesForeigncurrencytranslationadjustmentsRemeasurementsof defined benefitplansTotal accumulatedothercomprehensiveincomeNon-controllinginterestTotal net assets18,1984,56713,862(445)36,182(425)(764)1,687(820)(323)12135,980814(0)－－814(0)18,1984,56714,677(446)36,997(128)1,495(525)14240,0772972972,260(2,212)2,260(2,212)2,9172,9172,096Shareholders’ equityAccumulated other comprehensive incomeCapitalstockCapital surplusRetainedearningsTreasurystockTotalshareholders’equityValuationdifference onavailable-for-salesecuritiesDeferred gainson hedgesForeigncurrencytranslationadjustmentsRemeasurementsof defined benefitplansTotal accumulatedothercomprehensiveincomeNon-controllinginterestTotal net assets18,1984,56714,677(446)36,997(128)1,495(525)2,0962,93814240,0771,6201,620(0)0(0)0(0)－－1,620(0)1,61918,1984,56716,297(446)38,617123123(5)5015011,9971,8571,8571,3323543542,451－－3,2623,2622,938－－－－2,8372,8375,775814(0)3,2834,09720201,620(0)0－2,8644,484272716944,562814(0)－814(0)0－－Balance at beginning of year (Millions of yen)Changes in the fiscal yearIncome attributable to owners ofparentPurchase of treasury stockNet changes of items other thanshareholders’ equityTotal changes in the fiscal year 　 (Millions of yen)Balance at end of year (Millions of yen)From April 1, 2021 through March 31, 2022Balance at beginning of year (Millions of yen)Changes in the fiscal yearIncome attributable to owners ofparentPurchase of treasury stockDisposal of treasury stockTransfer of loss on disposal oftreasury stockNet changes of items other thanshareholders’ equityTotal changes in the fiscal year 　　(Millions of yen)Balance at end of year (Millions of yen)-6-Consolidated Statements of Cash FlowsApril 1, 2020 – March 31, 2021April 1, 2021 – March 31, 2022Millions of yenMillions of yen6 Increase (decrease) in provision for loss on construction contractsICash flows from operating activities1 Profit before income taxes2 Depreciation and amortization3 Amortization of goodwill4 Increase in allowance for doubtful accounts5 Decrease in net defined benefit liability7 Interest and dividends income8 Interest expenses9 Foreign exchange gains10 Gain on sales of property, plant and equipment11 Equity in (earnings) losses of affiliates12 Gain on sales of investments in securities13 Loss on valuation of investment securities14Decrease (increase) in notes receivable, accounts receivable from completed construction contracts15 Decrease (increase) in costs on uncompleted construction contracts16 Decrease (increase) in accounts receivable – other17 Increase (decrease) in notes and accounts payable – trade18 Decrease in advances received on uncompleted construction contracts19 Decrease (increase) in deposits paid20 Other, net21 Interest and dividends income received22 Interest expenses paid23 Income taxes paidIICash flows from investing activities1 Net increase in time deposits2 Purchase of property, plant and equipment3 Proceeds from sales of property, plant and equipment4 Purchase of intangible assets5 Net decrease (increase) in short-term loans receivable6 Other, netIII Cash flows from financing activities1 Net decrease in short-term loans payable2 Proceeds from long-term loans payable3 Repayment of long-term loans payable4 Repayment of finance lease obligations5 Other, netSubtotal Net cash provided by (used in) operating activities Net cash used in investing activities Net cash (used in) provided by financing activities IV Effect of exchange rate change on cash and cash equivalentsVNet increase (decrease) in cash and cash equivalentsVI Cash and cash equivalents at beginning of periodVII Cash and cash equivalents at the end of period2,7811,508(10)416(292)14(834)421(609)(16)(632)(36)1554,3291,0222,2708,549(3,048)1,23171717,9371,195(356)(1,022)17,753(1,340)(388)59(890)2(155)(2,712)(4,401)14,682(10,236)(495)(0)(451)(318)14,27080,21394,4833,1261,678(10)59(1,095)(228)(705)476(311)(3)240(70)-(16,666)(844)(426)(1,597)(1,704)(2,145)14,842(5,385)877(429)(1,853)(6,790)(4,659)(766)21(2,037)(3)(407)(7,851)(2,247)19,685(9,278)(551)(0)7,6082,350(4,683)94,48389,800-7-The company’s reportable operating segment has a single segment, namely EPC Business.Segment InformationConsolidated New Orders, Net Sales and Backlog of ContractsNewOrdersMillions of yenTotalNetSalesApr. 1, 2020 -Mar. 31, 2021Apr. 1, 2021 -Mar. 31, 2022 OverseasDomesticOverseasDomesticPetrochemicalsOil & GasPower/Railways etc.Chemicals/FertilizersPharmaceutical/Environmental/Industrial FacilitiesOthersPetrochemicalsOil & GasPower/Railways etc.Pharmaceutical/Environmental/Industrial FacilitiesOthersPetrochemicalsOil & GasPower/Railways etc.Chemicals/FertilizersPharmaceutical/Environmental/Industrial FacilitiesOthersPetrochemicalsOil & GasPower/Railways etc.Pharmaceutical/Environmental/Industrial FacilitiesOthersBacklogBeginning of period104,521 49,553 24,644 55,375 682 1,717 236,495 3,056 11,622 132,247 5,764 50 152,741 *(5,646)389,236 69,984 41,413 29,910 36,054 2,339 1,130 180,833 9,365 5,526 109,018 5,726 221 129,857 *1,411 310,691 SubtotalSubtotalGrand totalSubtotalSubtotalGrand total17,482 12,025 13,534 12,756 3,999 691 60,491 9,636 7,953 37,531 5,276 2,005 62,404 122,895 13,311 18,994 138 62,881 4,413 1,924 101,663 37,676 5,442 117,139 10,345 2,198 172,803 122,003 61,579 38,179 68,132 4,682 2,409 296,986 12,693 19,576 169,779 11,041 2,055 215,145 512,132 83,296 60,408 30,049 98,935 6,752 3,055 282,497 47,041 10,969 226,157 16,071 2,420 302,661 44,128 20,654 3,415 27,143 2,302 1,050 98,695 3,327 14,049 60,778 5,315 1,834 85,305 184,000 28,319 31,261 9,767 39,277 4,440 1,833 114,899 7,002 7,768 63,554 7,544 2,216 88,086 Backlogthe End of period69,984 41,413 29,910 36,054 2,339 1,130 180,833 9,365 5,526 109,018 5,726 221 129,857 *1,411 310,691 49,600 32,483 20,791 61,782 2,619 1,252 168,529 40,038 3,200 161,461 8,522 201 213,424 *4,478 381,954 274,467 585,159 202,986 Notes : 1. Net sales include corresponding amounts of the effects of changes in exchange rates upon the orders in currencies other than Japanese Yen. The included amounts are (1,146) million yen for Apr. 1, 2020 – Mar. 31, 2021 and 7,523 million yen for Apr. 1, 2021 – Mar. 31, 2022.2. Adjustment of orders awarded in prior years are included in the “Backlog, the End of period”. The amounts are (16,293) million yen for Apr. 1, 2020 – Mar. 31, 2021 and (7,742) million yen for Apr. 1, 2021 – Mar. 31, 2022. 3. Asterisks (*) represent increase (decrease) due to changes in exchange rates.(Reference) New orders and Backlog, the End of period for the Company’s share of the affiliates accounted for by the equity method for Apr. 1, 2021 – Mar. 31, 2022 are 15,943 and 14,330 million yen, respectively.-8-