July 10, 2014

Summary of Consolidated Business Results for Fiscal 2013
For the fiscal year ended May 31, 2014
Toyo Denki Seizo K.K.
Stock Code: 6505
Representative:
Inquiries:

Stock Exchange: 1st Section of the Tokyo Stock Exchange
URL http://www.toyodenki.co.jp
Kenzo Terashima, President
Yoshifumi Otsubo, Operating Officer and General Manager, Management Planning
Division
TEL +81-3-5202-8122
Scheduled date of convention of ordinary general meeting of shareholders: August 27, 2014
Scheduled date of commencement of dividend payments:
August 28, 2014
Scheduled date of submission of financial report:
August 28, 2014
Preparation of financial report supplemental explanatory materials:
Yes
Holding of quarterly financial results briefing:
Yes (for institutional investors andanalysts)
Note: Amounts less than one million yen in financial statements and the supplementary data are rounded down.

1. Consolidated Business Results for Fiscal 2013
(June 1, 2013 to May 31, 2014)(1) Consolidated Operating Results(In millions of yen, except where noted; percentage figures show year-on-year increase or decrease.)

Operating Income
Ordinary Income
1,076
114.7%
1,035(10.0)%
501(70.5)%
1,150(35.7)%(Note) Comprehensive income: Fiscal 2013: 1,421 million yen [(62.2)%]
Fiscal 2012: 3,761 million yen [250.9%]
Fiscal 2013
Fiscal 2012

Net Sales
34,957
14.3%
30,575(20.7)%

Diluted Net
Income per
Share (Yen)－－Net Income per
Share (Yen)
13.37
14.98

Fiscal 2013
Fiscal 2012

(Reference) Equity method investment gain or loss for:Net Income to
Shareholder’
Equity Ratio(%) 3.4
4.3

Net Income
644(10.8)%
722(8.1)%

Ordinary
Income to Total
Assets Ratio(%) 2.4
2.9

Operating
Income to Net
Sales Ratio(%) 3.1
1.6

Fiscal 2013: (14) million yen
Fiscal 2012: (16) million yen(2) Consolidated Financial Position(In millions of yen, except where noted)

Total Assets
As of May 31, 2014
As of May 31, 2013

44,75242,364

Net Assets
19,35018,519

Shareholders’ Equity
Ratio (%)
43.2
43.7

Net Assets per Share(Yen)
401.45384.14(Reference) Shareholders’ equity: As of May 31, 2014: 19,350 million yen
As of May 31, 2013: 18,519 million yen(3) Consolidated Cash Flows(In millions of yen, except where noted)

Fiscal 2013
Fiscal 2012

Cash Flow fromOperating Activities

Cash Flow from
Investing Activities

Cash Flow from
Financing Activities

3,621
1,069

(753)
(1,457)(1,199)155

Cash and Cash
Equivalents
at the End of
the Fiscal Year
2,997
1,302

2. Dividend Information

Fiscal 2012
Fiscal 2013
Fiscal 2014
(Forecast)

Annual Dividend (Yen)
Fiscal1Q Interim 3Q
Year-End
－
0.00
－
6.00
－
0.00
－
6.00
－

0.00

－

6.00

Total

Total Annual
Dividends

Dividend
Payout Ratio(Millions of yen)(consolidated, %) (consolidated, %)

6.00
6.00

289
289

40.0
44.9

6.00

Dividend on
Equity Ratio
1.7
1.5

24.1

3. Consolidated Performance Forecast for Fiscal 2014 (June 1, 2014 to May 31, 2015)(In millions of yen, except where noted; percentage figures show year-on-year increase or decrease.)

Net SalesFirst half
Full year

18,50040,000

16.9%
14.4%

Operating Income

Ordinary Income

600
2,100

600
2,100

181.2%
95.1%

122.1%
102.7%Net Income
350
1,200

505.0%
86.2%

Net Income
per Share
(Yen)
7.26
24.89

Notes:(1) Transfers of major subsidiaries during the period (transfers of specified subsidiaries accompanied by changes
in the scope of consolidation): No(2) Changes in accounting policies, changes in accounting estimates, and restatement(a) Changes in accounting policies in accordance with revisions to accounting standards and related practices: Yes(b) Any changes other than (a) above: No(c) Changes in accounting estimates: No(d) Restatement: No(3) Shares outstanding (common stock)(a) Number of shares outstanding as of the end of the period (including treasury stock):
May 31, 2014: 48,675,000 shares
May 31, 2013: 48,675,000 shares(b) Number of shares of treasury stock as of the end of the period:
May 31, 2014: 474,527 shares
May 31, 2013: 463,566 shares(c) Average number of shares for the period (fiscal year-to-date):
Fiscal 2013: 48,205,535 sharesFiscal 2012: 48,214,325 shares

(Reference) Summary of Non-Consolidated Business Results

1. Non-Consolidated Business Results for Fiscal 2013 (June 1, 2013 to May 31, 2014)(1) Non-Consolidated Operating Results(In millions of yen, except where noted; percentage figures show year-on-year increase or decrease.)

Fiscal 2013
Fiscal 2012

Net Sales
30,63415.4%
26,556 (22.0)%

Operating Income
650 296.8%
163 (86.9)%

Fiscal 2013
Fiscal 2012

Net Income per Share
(Yen)
10.28
15.30

Diluted Net Income
per Share (Yen)－－

Ordinary Income
837 (18.1)%
1,022 (29.6)%

Net Income
495 (32.8)%
737
33.0%

(2) Non-Consolidated Financial Position(In millions of yen, except where noted)

Total Assets
As of May 31, 2014
As of May 31, 2013
(Reference) Shareholders’ equity:

41,39439,326

Net Assets
16,39915,620Shareholders’ Equity
Ratio (%)
39.6
39.7

Net Assets per Share(Yen)
340.23324.01

As of May 31, 2014: 16,399 million yen
As of May 31, 2013: 15,620 million yen

Statements Regarding the Implementation Status of Audit ProceduresThis summary of consolidated business result is not subject to audit procedures as prescribed under the Financial
Instruments and Exchange Act. As of the date of report disclosure, audit procedures pursuant to the aforementioned
Act were yet to be completed.
Disclaimer concerning the Proper Use of Business Results Forecasts and Other Relevant Specific Items
The forecasts of business results presented in this document are based on management’s assumptions and beliefs inlight of currently available information. Toyo Denki Seizo K.K. (hereinafter Toyo Denki) cautions readers that due
to a variety of factors actual results may differ materially from forecasts. Please refer to “1. Analysis of Results ofOperations and Financial Position” in Accompanying Materials on page 2 for details relating to operating results
forecasts.

Accompanying Materials Contents
1.

Analysis of Results of Operations and Financial Position .............................................................................. 2(1) Analysis of Results of Operations ................................................................................................................... 2(2) Analysis of Financial Position ........................................................................................................................ 3(3) Fundamental Policy concerning Distribution of Surplus and Dividend
for the Fiscal Year under Review and the Next Fiscal Year ........................................................................... 42.
Overview of the Group ................................................................................................................................... 5
3.
Management Policies ...................................................................................................................................... 6(1) Basic Management Policies of the Company.................................................................................................. 6(2) Pending Issues................................................................................................................................................. 6
4.
Consolidated Financial Statements ................................................................................................................. 7(1) Consolidated Balance Sheets .......................................................................................................................... 7(2) Consolidated Statements of Income and Comprehensive Income .................................................................. 9(3) Consolidated Statements of Changes in Net Assets ...................................................................................... 11(4) Consolidated Statements of Cash Flows ....................................................................................................... 13-1-

1. Analysis of Results of Operations and Financial Position(1) Analysis of Results of Operations(a) Results of Operations in the Fiscal Year under Review
In fiscal 2013, the fiscal year ended May 31, 2014, the trend of economic recovery in Japan continued with an
expansion in personal spending due to improvement in consumer sentiment and a revival in corporate earnings
witnessed on the back of depreciation of the yen and rising stock prices due to the economic policies and monetaryeasing policy of the current administration in addition to last-minute demand accompanying the increase in the rateof consumption tax in the second half of the fiscal year.
On the other hand, overseas economies remained uncertain overall. While the recovery trend of the UnitedStates economy continued due to an improvement in employment, the pace of recovery in the European economy
was slow due to factors that included prolonged fiscal problems, slowdown of economic growth in India, andpolitical instability in Thailand.
Under these circumstances, the Toyo Denki Group has been working in unison to thoroughly strengthen its
management foundation and drastically improve its corporate value according to “DASH 2015,” the Group’s
medium-term management plan launched in June 2012.
The Toyo Denki Group’s performance in fiscal 2013, the second fiscal year of the medium-term management
plan, was as follows.
Orders received increased 25.4% compared with the previous fiscal year to 42,568 million yen. This overall
result reflected a surge in orders received in the Transportation Systems segment both in and outside Japan.
Net sales increased 14.3% year on year to 34,957 million yen. Despite a slight decrease in the Industrial
Systems segment, this overall result reflected a significant surge in the Transportation Systems segment both in andoutside Japan, and a slight increase in the Information Equipment Systems segment.
From a profit perspective, operating income increased 575 million yen compared with the previous fiscal year to
1,076 million yen, mainly due to the increase in net sales and reductions in expenses. Ordinary income decreased
115 million yen to 1,035 million yen, which was partly attributable to foreign exchange losses, albeit small. Net
income declined 78 million yen to 644 million yen.
Information by business segment is presented as follows.
Transportation Systems
Orders received recorded an increase in Japan in addition to a sharp upturn overseas, primarily in Asia and theUnited States. In overall terms, orders received increased 42.3% compared with the previous fiscal year to 29,790
million yen.
Net sales increased sharply as a result of a recovery in vehicle demand in Japan, as well as increased momentum
outside Japan, and totaled 22,198 million yen representing 28.1% year-on-year increase.
Due to mainly to increased revenue, segment profit totaled 2,374 million yen representing 24.1% year-on-yearincrease.
Industrial Systems
While orders received for testing equipment for automobile development and those related to capital investment
were robust, infrastructure related orders declined slightly. In overall terms, orders received decreased 3.1%
compared with the previous fiscal year to 11,097 million yen.
Net sales in this segment decreased 5.4% year on year to 10,924 million yen, mainly for the same reasons
underlying the decrease in orders received.
Segment profit increased 23.8% to 536 million yen, assisted by improved profitability of factories.
Information Equipment Systems
Orders received in this segment increased 8.4% compared with the previous fiscal year to 1,673 million yen, as
orders for both railway station operating equipment and remote monitoring systems increased.
Net sales in this segment increased 7.5% year on year to 1,828 million yen, mainly due to program upgrading
for railway station operating equipment accompanying the increase in the rate of the consumption tax.
Segment profit was 348 million yen representing 31.3% year-on-year increase.

-2-Note: Net sales data by business segment represents sales to third parties and is exclusive of inter-segment sales andtransfers.
(b) Outlook for the Next Fiscal YearNet sales are expected to increase in both the Transportations Systems segment, on the back of an abundant orderbacklog, and the Industrial Systems segment due to an increase in capital investment related demand. As a result,operating income is also anticipated to rise.
Note: The aforementioned forecasts of business results are based on management assumptions and beliefs in lightof currently available information. Toyo Denki cautions readers that actual results could differ materially fromforecasts due to a variety of factors.
(2) Analysis of Financial Position(a) Status of Assets, Liabilities and Net Assets(Assets)
Total assets as of May 31, 2014 stood at 44,752 million yen, an increase of 2,388 million yen compared with theend of the previous fiscal year. Despite a decrease in trade notes and accounts receivable of 578 million yen, theincrease in total assets was largely attributable to increases in cash and cash equivalents of 1,695 million yen,inventories of 436 million yen, and investment securities of 944 million yen.
(Liabilities)
Total liabilities amounted to 25,402 million yen, an increase of 1,558 million yen compared with the previous fiscal
year end. While short-term debt contracted 2,308 million yen, this upswing in total liabilities reflected a 1,521
million yen increase in long-term debt and a 909 million yen increase in accrued expenses as well as an increase of
755 million yen in net defined benefit liability (deduction of decrease in the provision for employees’ retirement
benefits) as a result of application of the revised retirement benefits accounting standards.
(Net Assets)
Net assets as of May 31, 2014 stood at 19,350 million yen, an increase of 830 million yen compared with theprevious fiscal year. This increase was largely attributable to a 355 million yen increase in retained earnings and a
622 million yen increase in unrealized holding gain on available-for-sale securities despite a decrease of 298
million yen from remeasurements of defined benefit plans.
(b) Status of cash flows
The balance of consolidated cash and cash equivalents as of May 31, 2014 stood at 2,997 million yen, an increaseof 1,695 million yen compared with the previous fiscal year-end.
Principal movements in operating, investing and financing cash flows for the fiscal year under review arepresented briefly as follows.
Cash flows from operating activities
Net cash provided by operating activities amounted to 3,621 million yen. Apart from accrued expenses, major cash
outflows were an increase of 1,541 million yen in accrued expenses and trade notes and accounts payable. Principal
cash inflows were income before income taxes and minority interests at 1,030 million yen and depreciation andamortization at 1,000 million yen.
Cash flows from investing activities
Net cash used in investing activities totaled 753 million yen for the fiscal year under review and mainly comprised
funds used for the purchases of property, plant and equipment at 635 million yen.
Cash flows from financing activities
Net cash used in financing activities was 1,199 million yen. The principal cash inflow was an increase in long-term
debt at 2,650 million yen, while major cash outflows were a decrease in short-term loans payable at 2,265 million
yen and repayment of long-term debt at 1,172 million yen.

-3-

Trends in cash flow indices are as follows.
Fiscal
2009
36.6
62.6
10.7
5.1

Fiscal
2010
38.7
49.8
2.6
18.1

Fiscal
2011
39.5
31.4
－
－

Fiscal
2012
43.7
34.0
9.2
5.1

Fiscal
2013
43.2
40.3
2.5
21.5

Shareholders’ equity ratio (%)
Shareholders’ equity ratio based on market capitalization (%)
Ratio of interest-bearing liabilities to cash flows (Times)
Interest coverage ratio (Times)
Notes:- Shareholders’ Equity Ratio (%): Shareholders’ equity/Total assets- Shareholders’ equity ratio based on market capitalization (%): Market capitalization/Total assets- Ratio of interest-bearing liabilities to cash flows: Interest-bearing liabilities/Cash flows- Interest coverage ratio: Cash flows/Interest payments
1. Indices are calculated based on consolidated financial data.
2. Market capitalization is calculated by multiplying the period-end closing share price with the number of sharesissued and outstanding as of the period-end (after deducting treasury stock).
3. Cash flows from operating activities are used in calculations that use cash flows.
4. Interest-bearing liabilities include all interest-bearing liabilities under liabilities recorded on the consolidatedbalance sheet.
5. In each period where cash flows from operating activities are negative, ratio of interest-bearing liabilities to cash
flows and interest coverage ratio data is not recorded.

(3) Fundamental Policy concerning Distribution of Surplus and Dividend for the Fiscal Year under Review and the
Next Fiscal Year
The maintenance of stable dividends forms the basis of Toyo Denki’s distribution of profit. The Company applies
internal reserves to strengthen its financial position in addition to making strategic allocations to such areas asresearch and development, capital expenditure and outside of Japan expansion, with the aims of growing its
business and strengthening its management foundation in the future.
Dividends for the fiscal year under review remained at six yen per share, unchanged from the previous term. The
Company intends to maintain dividends at six yen per share or more from the fiscal year ending May 31, 2015
onward.
Toyo Denki will continue seeking to expand its operations and strengthen its management foundation as it strives toachieve a stable dividend.

-4-

2. Overview of the GroupThe Toyo Denki Group is composed of Toyo Denki, nine consolidated and non-consolidated subsidiaries and twoequity-method affiliated companies. The Group is engaged in the manufacture and sale of electrical equipment fortransportation, industrial, and information equipment systems as well as incidental projects.
The organization and position of companies within the Toyo Denki Group together with business flows arepresented as follows.
Customer

Outside of JapanJapan

Toyo Denki Seizo K.K.
Transportation
Systems◎Toyo Kouki Co., Ltd.
◎Taihei Electric Co.,Ltd.

Industrial Systems◎Toyosangyo K.K.
◎TD Drive
Manufacturing Co.,Ltd.

◎Toyo Denki USA,
Inc. (US)○Hunan Xiangyang
Electric Co., Ltd.
(China)○Changzhou Ruiyang
Transmission
Technology Co., Ltd.
(China)□Taiping Zhanyun
Automatic Door
(Changzhou) Co., Ltd.
(China)□TOYO DENKI (BEIJING) CO., LTD.
◎Consolidated subsidiaries○Affiliates to which the equity method is applied□Non-consolidated subsidiaries-5-

Information
Equipment System

Other◎Toyo Shoji K.K.

3. Management Policies(1) Basic Management Policies of the Company
The Toyo Denki Group is reviewing “Dash 2015,” the medium-term management plan it announced on July 11,2012, based on subsequent changes in the business environment and pending issues and has commenced work on
formulating ”NEXT 100: Beyond 100 Years,” a new medium-term management plan set to conclude at the end of
fiscal 2016 (on May 31, 2017). The Group is proactively working to promote measures under the basic policies
described below for further growth towards the achievement of its long-term vision based on the foundations built
under the previous medium-term management plan “Dash 2015.”
Long-Term Vision
The Toyo Denki Group will contribute to the realization of an environmental-compatibility-based society throughglobal business development by fusing advanced breakthrough technologies together with the excellent motor drive
technologies it has cultivated since its foundation.
Fundamental Policy
The Toyo Denki Group is committed to drastically improving its corporate value while thoroughly strengthening its
management foundation, in order to become a Group well adapted to the new era in view of 2018, the 100th
anniversary of its foundation, and beyond.
Aiming to strengthen the management foundation as a 50 billion yen company in three years under the slogan:“Beyond the 100-Year Mark”(a) Strengthen international competitiveness(b) Build a stable business earnings structure(c) Restructure production system(d) Promote development of technology(e) Establish new businesses(f) Train human resources to support global development(2) Pending Issues
The Toyo Denki Group is now implementing “NEXT 100: Beyond 100 Years,” its new medium-term management
plan and is proactively working to settle issues remaining from the previous medium-term management plan as well
as new issues.
Principal measures under this plan are presented as follows.
(a)Strengthen international competitiveness- Promote business centered on the Group’s bases in overseas markets in China, the U.S., South Korea, India, andTaiwan- Build up the brand and expand business through bases in Southeast Asia
- Utilize alliances to cultivate new markets(b) Build a stable business earnings structure- Expand its share in Japan’s Mothers market- Stabilize earnings potential in Industrial Systems segment(c) Restructure production system- Expand production capacity and establish global production system as Toyo Denki in view of its 100th year andbeyond- Strengthen global quality control systems, including supplier management- Reorganize backbone systems(d) Promote development of technology- Proactively utilize young human resources with an eye to achieving fresh ideas- Train advanced engineers through active secondment to research institutions such as universities(e) Establish new businesses- Promote businesses in distributed power sources and electrification(f) Train human resources to support global development- Procure next-generation human resources and capacity-development systems- Establish working and living environments that the promotion and development of global business(g) Promote CSR activities-6-4. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of May 31, 2013

As of May 31, 2014

AssetsCurrent assets
Cash and cash equivalents

1,302

2,997

Trade notes and accounts receivable

13,384

12,805

Products and finished goods

1,464

1,483

Work in process

3,081

3,459

Raw materials and stored goods

2,118

2,158

Advances

77

51

Other accounts receivable

1225

Deferred tax assets

452

544

Other

90

63

(40)

(34)

21,94323,555

6,973

7,075

Accumulated depreciation(3,988)(4,228)

Buildings and structures, net

2,985

2,847

Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures

6,757

6,679

(5,648)(5,770)

1,108

908

Land

289

289

Construction in progress

80

63

Machinery and equipment
Accumulated depreciation
Machinery and equipment, net

Other
Accumulated depreciation

3,024

3,171

(2,476)(2,624)

547

547

5,012

4,656

Software

274

230

Other

47

37

Total intangible assets

321

268

13,31814,262

39

35

Other

1,893

1,986

Allowance for doubtful accounts

(162)

(12)

Total investments and other assets

15,087

16,273

20,421

21,19742,36444,752Other, net
Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities
Deferred tax assets

Total fixed assets
Total assets-7-

(Millions of yen)
As of May 31, 2013

As of May 31, 2014

Trade notes and accounts payable

4,646

5,285

Short-term debt

Liabilities
Current liabilities

4,296

1,987

Current portion of corporate bonds

120-

Income taxes payable

319

374

Consumption and other taxes payable

67

180

Accrued expenses

2,883

3,792

Advances received

413

292

Deposits received

212

228

Reserve for directors’ bonuses

16

28

Reserve for employees’ bonuses

772

915

Reserve for order losses

196

129

335

281

14,28013,496

5,413

6,934

Long-term payables

164

145

Deferred tax liabilities

614

653

Other
Total current liabilities
Long-term liabilities
Long-term debt

Reserve for employees’ retirement benefits

3,289

-

Allowance for environmental development

43

43

-

4,044

38

84

9,564

11,906

23,84425,402

Capital stock

4,998

4,998

Capital surplus

3,177

3,177

Retained earnings

7,155

7,510

Net defined benefit liability
Other
Total long-term liabilities
Total liabilities
Net assets
Shareholders’ equity

Treasury stock

(163)

(167)

Total shareholders’ equity

15,167

15,519

3,367

3,989

-

(26)

Accumulated other comprehensive income
Unrealized holding gain on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustments

(14)

165

Remeasurements of defined benefit plans

-

(298)

Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

-8-

3,352

3,830

18,51919,35042,36444,752

(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
For the fiscal year
ended May 31, 2013

For the fiscal year
ended May 31, 2014

Net sales

30,57534,957

Cost of sales

22,87826,859Gross profit

7,696

8,097

Selling, general and administrative expenses

7,194

7,021

501

1,076

Interest income

00Dividend income

159

168

Foreign exchange gains

629-Life insurance dividend income

90

5

Miscellaneous income

60

22

Total non-operating income

940

196

Interest expense
Equity in loss of unconsolidated subsidiaries andaffiliates
Loss on foreign currency exchange

215

181

16

14

-

14

Loss on disposal of fixed assets

15

13

Operating income
Non-operating income

Non-operating expenses

Miscellaneous loss

43

12

Total non-operating expenses

291

236

1,150

1,035

Gain on sales of investment securities

72-

Extraordinary repayment of special corporate taxes

64-

Total extraordinary income

137

-

-

5

Ordinary income
Extraordinary income

Extraordinary loss
Loss on liquidation of subsidiaries and affiliates
Office transfer expenses

15-

Total extraordinary losses

15

5

1,272

1,030

Income before income taxes and minority interests
Income taxes:

496

624

Deferred

54

(237)

Total income taxes

550

386

Income before minority interests

722

644

Net income

722

644

Current-9-

(Consolidated Statements of Comprehensive Income)(Millions of yen)
For the fiscal year
ended May 31, 2013
Income before minority interests

For the fiscal year
ended May 31, 2014
722

644

2,951

622

Other comprehensive income
Unrealized holding gain on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Share of other comprehensive income of affiliates towhich the equity method is applied
Total other comprehensive income
Comprehensive income

-

(26)

26

14

61

166

3,039

777

3,761

1,421

3,761

1,421

-

-

Comprehensive income attributable to:
Owners of the parent
Minority interests- 10 -

(3) Consolidated Statements of Changes in Net Assets
For the fiscal year ended May 31, 2013 (June 1, 2012 to May 31, 2013)(Millions of yen)
Shareholders’ equity
Capitalstock
Balance as of the beginning of
the fiscal period under review

CapitalsurplusRetainedearnings

Treasury
stock

Total
shareholders’equity

4,998

3,177

6,722

(162)

14,735Distribution ofretained earnings

-

-

(289)

-

(289)

Net income

-

-

722

-

722

Acquisition of treasury stock

-

-

-

(1)

(1)

Net changes of items otherthan shareholders’ equity

-

-

-

-

-

Total change during fiscal
period under review

-

433

(1)

431

7,155

(163)

15,167

Valuation difference
Foreign
Total accumulated
on available-forcurrency translation other comprehensive
sale securities
adjustment
incomeTotal net
assetsChange during fiscal period
under review

Balance as of the end of fiscal
period under review

4,998

3,177

Accumulated other comprehensive income

Balance as of the beginning of
the fiscal period under review

415

(102)

313

15,049Distribution ofretained earnings

-

-

-

(289)

Net income

-

-

-

722

Acquisition of treasury stock

-

-

-

(1)

Net changes of items otherthan shareholders’ equity

2,951

87

3,039

3,039

Total change during fiscal
period under review

2,951

87

3,039

3,470

Balance as of the end of fiscal
period under review

3,367

(14)

3,352

18,519Change during fiscal period
under review- 11 -

For the fiscal year ended May 31, 2014 (June 1, 2013 to May 31, 2014)(Millions of yen)
Shareholders’ equity
Capitalstock
Balance as of the beginning of
the fiscal period under review

CapitalsurplusRetainedearnings

Treasury
stock

Total
shareholders’equity

4,998

3,177

7,155

(163)

15,167

Distribution ofretained earnings

-

-

(289)

-

(289)

Net income

-

-

644

-

Acquisition of treasury stock

-

-

-

(3)

644
(3)

Net changes of items otherthan shareholders’ equity

-

-

-

-

-

Total change during fiscal
period under review

-

-

355

(3)

351

4,998

3,177

7,510

(167)

15,519Change during fiscal period
under review

Balance as of the end of fiscal
period under review

Accumulated other comprehensive income
Total
Remeasurements accumulatedof definedotherbenefit planscomprehensive
incomeValuationdifference on
available-forsale securities

Deferred
gains or losses
on hedges

Foreigncurrencytranslation
adjustment

3,367

-

(14)

-

3,352

18,519Distribution ofretained earnings

-

-

-

-

-

(289)

Net income

-

-

-

-

-

Acquisition of treasury stock

Balance as of the beginning of
the fiscal period under review

Total net
assetsChange during fiscal period
under review

-

-

-

-

-

644
(3)

Net changes of items otherthan shareholders’ equity

622

(26)

180

(298)

478

478

Total change during fiscal
period under review

622

(26)

180

(298)

478

830

3,989

(26)

165

(298)

3,830

19,350

Balance as of the end of fiscal
period under review- 12 -

(4) Consolidated Statements of Cash Flows(Millions of yen)
For the fiscal year
ended May 31, 2013

For the fiscal year
ended May 31, 2014

Cash flows from operating activities
Income before income taxes and minority interests

1,272

1,030

Depreciation and amortization

1,144

1,000

Increase (decrease) in allowance for doubtful accounts

158

(156)

Increase (decrease) in reserve for employees’ bonuses
Increase (decrease) in reserve for employees’ retirement
benefits
Increase (decrease) in net defined benefit liability

(118)

142

152

(3,289)-3,580Interest and dividends income

(159)

(168)

Interest expenses

215

181

Loss (gain) on sales of investment securities
Decrease (increase) in notes and accounts receivabletrade
Decrease (increase) in inventories

(72)

-

230

586

(1,122)(430)

Increase (decrease) in trade notes and accounts payable

100

635

Increase (decrease) in reserve for order losses

(5)

(68)

Increase (decrease) in advances received

200

(142)

Increase (decrease) in accrued expenses

(28)

902

Other

(243)

384

Subtotal

1,723

4,188

171

168

Interest expenses paid

(210)

(168)

(Payments for) refund of corporate and other taxes

(615)

(567)

Net cash provided by operating activities

1,069

3,621

(1,425)

(635)

(13)

(13)

Interest and dividends income received

Cash flows from investing activities
Purchases of property, plant and equipment
Purchases of investment securities
Proceeds from sales of investment securities
Other payments

127

-

(178)

(74)

Other receipts

123

4

Other

(91)

(34)

(1,457)(753)

Net cash used in investing activities- 13 -

(Millions of yen)
For the fiscal year
ended May 31, 2013

For the fiscal year
ended May 31, 2014

Cash flows from financing activities(2,000)(2,265)

Increase in long-term debt

3,800

2,650

Repayment of long-term debt

(1,196)(1,172)

Redemption of bonds payable

(160)

(120)

Increase (decrease) in short-term loans payable, net

Proceeds from sales of treasury stock
Cash dividends paid
Other
Cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Increase (decrease) in cash and cash equivalents
Balance of cash and cash equivalents at the beginning of theperiodBalance of cash and cash equivalents at the end of theperiod- 14 -

(1)

(3)

(287)

(287)

(0)

(0)

155

(1,199)

45

26

(186)

1,695

1,489

1,302

1,302

2,997