Summary of Consolidated Business Results for the First Quarter of Fiscal 2018
October 12, 2018
Company Name:
Toyo Denki Seizo K. K.
Stock Exchange: 1st Section of the Tokyo Stock Exchange
Stock Code:6505
URL
http://www.toyodenki.co.jp
Representative：
Kenzo Terashima, President
Inquiries:
Takatoshi Ohtsuka, General Manager, Management Planning Division
TEL: +81-3-5202-8122
Scheduled date of submission of quarterly financial report: October 12, Scheduled date of commencement of dividend payments: 2018
Preparation of quarterly financial report supplemental explanatory materials:Yes
Holding of quarterly financial results briefing:Yes (for institutional investors and analysts)(Note: Amounts less than one million yen in financial statements and the supplementary data are rounded down.)

1.

Consolidated Business Results for the First Quarter of Fiscal 2018 (June 1, 2018 to August 31, 2018)(1) Consolidated Operating Results(In millions of yen, except where noted; percentage figures show year-on-year increase or decrease.)
Net Sales

Operating Income

Ordinary Income

Millions of yen%

Millions of yen%

Millions of yen%

8,689
6,958

24.9(10.4)

(584)
(826)

-(548)(701)-1Q Fiscal 2018
1Q Fiscal 2017
(Note) Comprehensive
income:1Q Fiscal 2018
1Q Fiscal 2017
Net Income perShare

1Q Fiscal 2018
1Q Fiscal 2017(908) million yen(286) million yen[[Net Income Attributable to
Owners of the Parent
Millions of yen
%

(348)
(400)

-- %]
- %]

Diluted Net Incomeper ShareYenYen(36.89)(42.44)-(2) Consolidated Financial Position
Total Assets

Net Assets

Millions of yen

1Q Fiscal 2018
As of May 31, 2018
(Reference) Shareholders’ equity:

2.

Shareholders’ Equity
Ratio (%)

Millions of yen61,746
63,291
1Q Fiscal 2018
As of May 31, 2018%

24,94626,327
24,946 million yen
26,327 million yen

40.4
41.6

Dividend Information
1Q

Annual Dividend (Yen)
3Q
Fiscal Year-End

Interim
Yen

Total

Yen

Yen

Yen

Yen

0.00

－

50.00

50.00

－
0.00
30.00
(Note) Revisions to the most recently announced dividend forecasts: No(Note) Year-end dividends for Fiscal 2017: Ordinary dividend: 30.00 yen; Commemorative dividend: 20.00 yen

30.00

As of May 31, 2018
Fiscal 2018－－

Fiscal 2018 (Forecast)3.

Consolidated Performance Forecast for Fiscal 2018 (June 1, 2018 to May 31, 2019)(In millions of yen, except where noted; percentage figures show year-on-year increase or decrease.)
Net Income
Attributable toNet Income perOwners of the Parent
Share (Yen)Net Sales
Operating Income
Ordinary Income
Millions of yen%

Millions of yen%

YenFirst half－
19,0001.8(270)(150)
Full year
42,500
(0.1)
500
36.3
700(Note) Revisions to the most recently announced performance forecast: No

Millions of yen%

Millions of yen%

－35.8(150)500－(27.8)(15.88)52.95

*Notes:(1) Transfers of major subsidiaries during the period:

No(transfers of specified subsidiaries accompanied by changes in the scope of consolidation)
Newly included:- companies (name of the company)
Excluded:- companies (name of the company)(2) Application of Special Accounting Practices for the Preparation of Quarterly Consolidated Financial Statement: :No(3) Changes in accounting policies, changes in accounting estimates, and restatement:
(a):

No

Changes in accounting policies in accordance with revisions to accounting standards and related practices :No(b) Any changes other than (a) above:

No(c)

:

No:

No

Changes in accounting estimates(d) Restatement(4) Shares outstanding (common stock)(a)

Number of shares outstanding as of the endof the period (including treasury stock):(b) Number of shares of treasury stock as of theend of the period:(c) Average number of shares for the period(fiscal year-to-date)August 31,
2018

9,735,000
shares

As of May31, 2018

9,735,000
sharesAugust 31,
2018

291,937 shares

As of May31, 2018

291,907
sharesAugust 31,
2018

9,443,085
shares1Q Fiscal
20179,444,230
shares* Quarterly financial reports are not subject to quarterly review procedures by a certified public
accountant or audit firm.
* Disclaimer concerning the Proper Use of Business Results Forecasts and Other Relevant Specific Items(Note on forward-looking statements)
The forecasts of business results presented in this document are based on management’s assumptions
and beliefs in light 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 “Explanation of Consolidated Performance Forecast and Other Forward-looking
Information” in the Accompanying Materials on page 3 for details relating to forecasts of operating
results (available in Japanese only).
(Change in the representation of calendar dates)
From the Summary of Consolidated Business Results for the First Quarter of Fiscal 2018, the display
format of dates have been changed from the Japanese calendar to the Western calendar.

*This report is an abridged translation of the Japanese summary consolidated business results, which has been preparedin accordance with accounting principles generally accepted Japan, for reference purpose only.

Summary of Consolidated Business Results for the First Quarter of Fiscal 2018
Toyo Denki Seizo K. K. (6505)

2.

Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
End of the First Quarter ofFiscal 2018
(As of August 31, 2018)

As of May 31, 2018
AssetsCurrent assets
Cash and cash equivalents

1,555

2,221

Trade notes and accounts receivable

16,96014,542

Electronically recorded monetary claims - operating

1,152

1,715

Products and finished goods

1,006

944

Work in process

3,506

4,063

Raw materials and stored goods

3,319

3,587

Advances

3077

Other accounts receivable

547

546

Other534

195

Allowance for doubtful accounts
Total current assets

(1)

(1)

28,611

27,893Fixed assets
Property, plant and equipment
Buildings and structures

11,981

12,107

Accumulated depreciation(4,707)(4,811)

Buildings and structures, net

7,274

7,296

Machinery and equipment

7,742

7,932

Accumulated depreciation(6,310)(6,434)

Machinery and equipment, net

1,432

1,498

1,301

1,301

320

230

3,953

4,174

(3,116)(3,224)837

949

11,166

11,276Land
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Software

885

831

Software in progress

3－

Other

15

15

Total intangible assets

904

847

19,681

18,842

Investments and other assets
Investment securities
Deferred tax assets
Other

95

116

2,845

2,782

Allowance for doubtful accounts

(12)

(12)

Total investments and other assets

22,60921,72934,68033,85363,291

61,746

Total fixed assets
Total assets

Summary of Consolidated Business Results for the First Quarter of Fiscal 2018
Toyo Denki Seizo K. K. (6505)(Millions of yen)
End of the First Quarter ofFiscal 2018
As of May 31, 2018
(As of August 31, 2018)
Liabilities
Current liabilities
Trade notes and accounts payable

4,057

3,325

Electronically recorded obligations - operating

6,295

5,709

Short-term debt

7,241

9,571

180

55

Income taxes payable
Consumption and other taxes payable

38

47

Accrued expenses

841

822

Advances received

188

149

Deposits received

229

374

Reserve for directors’ bonuses

25

6

Reserve for employees’ bonuses

814

415

Reserve for order losses

689

582

Other1,716

1,661Total current liabilities

22,32022,721

8,930

8,779

Long-term liabilities
Long-term debt
Long-term payables

3543

Net defined benefit liability

3,862

3,853

Deferred tax liabilities

1,756
58

1,402
－

14,644

14,07836,96436,799

Capital stock

4,998

4,998

Capital surplus

3,177

3,177

Retained earnings

10,579

9,758

Treasury stock

(480)

(480)

Total shareholders’ equity

18,274

17,454

8,111

7,563

Other
Total long-term liabilities
Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive incomeUnrealized holding gain on available-for-sale securities
Foreign currency translation adjustments

188163Adjustments of defined benefit plans

(247)

(234)

Total accumulated other comprehensive income

8,052

7,492

26,327

24,946

63,291

61,746

Total net assets
Total liabilities and net assets

Summary of Consolidated Business Results for the First Quarter of Fiscal 2018
Toyo Denki Seizo K. K. (6505)(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income for the First Quarter of Fiscal 2018
1Q FY2017(June 1, 2017 to August 31,2017)(Millions of yen)
1Q FY2018(June 1, 2018 to August 31,2018)

Net Sales
Cost of sales

6,958

8,689

5,827

7,449

Gross profit

1,131

1,240

Selling, general and administrative expenses

1,957

1,824

Operating loss

(826)

(584)

Non-operating income
Interest income

00

Dividend income

108

120

Foreign exchange gains

23－

Gain on reversal of environmental expenses

40－

Miscellaneous income

1110

Total non-operating income

184

131

Interest expense

3529

Equity in loss of unconsolidated subsidiaries and affiliates

1521

Loss on disposal of fixed assets

01Foreign exchange losses－Commission fee

527－

Miscellaneous loss

415

Total non-operating expenses

6095(701)

(548)

168

Non-operating expenses

Ordinary loss
Extraordinary income
Gain on sales of investment securities

295－

170

95

Expenses for commemorative events of the 100th anniversary－

5

Total extraordinary losses－5(530)

(458)

Other
Total extraordinary income
Extraordinary loss

Loss before income taxes
Income taxes: Current

21

29

Income taxes: Deferred

(151)

(138)

Total income taxes

(130)

(109)

Net loss

(400)

(348)

Net Loss Attributable to Owners of the Parent

(400)

(348)

Summary of Consolidated Business Results for the First Quarter of Fiscal 2018
Toyo Denki Seizo K. K. (6505)

Consolidated Statements of Comprehensive Income

Net loss

1Q FY2017(June 1, 2017 to August 31,2017)(Millions of yen)
1Q FY2018(June 1, 2018 to August 31,2018)

(400)

(348)

Other comprehensive income
Unrealized holding gain on available-for-sale securities

136(547)

Foreign currency translation adjustments3(0)Adjusted amounts of defined benefit plans

1212

Share of other comprehensive income of affiliates to which theequity method is applied
Total other comprehensive income

(38)

(24)

114

(560)

Comprehensive income

(286)

(908)

(286)

(908)

－－

Comprehensive income attributable to:
Owners of the parent
Non-controlling interests

Summary of Consolidated Business Results for the First Quarter of Fiscal 2018
Toyo Denki Seizo K. K. (6505)(3) Segment Information(Notes on going concern assumption)
Not applicable(Notes on significant changes in the amount of shareholders’ equity)
Not applicable(Additional information)
The Company has applied the “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ
Statement No. 28, February 16, 2018), etc. from the beginning of the first quarter of fiscal 2018. Accordingly, deferredtax assets are presented under investments and other assets and deferred tax liabilities are presented under long-term
liabilities.

Summary of Consolidated Business Results for the First Quarter of Fiscal 2018
Toyo Denki Seizo K. K. (6505)(Segment Information)
Segment Information:
The First Quarter of Fiscal 2017 (June 1, 2017 to August 31, 2017)
Information regarding Net Sales and Income (Loss) by Reporting Segment
Reporting Segment
Informatio
IndustrialSystemsnTransportation
Equipmen
Systemst Systems
Net Sales
Sales to third parties
Inter-segment sales andtransfers
Total
Segment profit (loss)

Other(Note 1)

Total(Millions of yen)AmountRecorded on
Adjustmen
Quarterlyt Amount Consolidated
Statements of(Note 2)
Income (Note3)

4,929

1,805

222

1

6,958

－

6,958

－
4,929
160

0
1,805(257)

－
222
(35)

163
164
4

163
7,121
(127)

(163)
(163)
(698)

－
6,958(826)Notes: 1. The “Other” segment includes operations not included in reporting segments such as the dispatch of
temporary staff.
2. The segment profit (loss) adjustment amount is a loss of 698 million yen. This is comprised of anelimination of inter-segment sales and transfer amount at a loss of 2 million yen and corporate expenditure(a loss of 700 million yen) that is not allocated to each reporting segment. Corporate expenditure is
primarily comprised of selling, general and administrative expenses as well as research and development
costs that are not allocated to each reporting segment.
3. Segment profit (loss) has been adjusted with operating loss recorded under the quarterly consolidated
statements of income.

The First Quarter of Fiscal 2018 (June 1, 2018 to August 31, 2018)
Information regarding Net Sales and Income (Loss) by Reporting Segment
Reporting Segment

Net Sales
Sales to third parties
Inter-segment sales andtransfers
Total
Segment profit (loss)(Millions of yen)AmountRecorded on
Quarterly
Adjustment
AmountConsolidated
Statements of(Note 2)
Income(Note 3)

Transportation
Systems

IndustrialSystems

Information
Equipment
Systems

Other(Note 1)

5,458

2,776

448

6

8,689

－

8,689

5
5,464
46

0
2,776
(16)

－
448
104

152
158
6158
8,848
141(158)
(158)
(725)

－
8,689
(584)

TotalNotes: 1. The “Other” segment includes operations not included in reporting segments such as the dispatch oftemporary staff.
2. The segment profit (loss) adjustment amount is a loss of 725 million yen. This is comprised of anelimination of inter-segment sales and transfer amount at a loss of 0 million yen and corporate expenditure(a loss of 725 million yen) that is not allocated to each reporting segment. Corporate expenditure is
primarily comprised of selling, general and administrative expenses as well as research and development
costs that are not allocated to each reporting segment.
3. Segment profit (loss) has been adjusted with operating loss recorded under the quarterly consolidated
statements of income.

Summary of Consolidated Business Results for the First Quarter of Fiscal 2018
Toyo Denki Seizo K. K. (6505)

3.

Supporting Materials for the Financial Results(1) The Status of Production, Orders, and Sales(a)

Production Status

1Q FY2017(June 1, 2017 to August 31, 2017)
Business segment
AmountShare(Millions of yen)(%)
Transportation Systems
5,446
72.0
Industrial Systems
2,077
27.5
Information Equipment Systems
350.5
Other－－Total
7,560100.0
Notes: 1. Amounts are based on sales prices.
2. Amounts are exclusive of consumption and other taxes.

1Q FY2018(June 1, 2018 to August 31, 2018)
AmountShare(Millions of yen)
(%)
5,177
63.5
2,512
30.8
466
5.7
－
－
8,156
100.0

(b) Status of Orders Received
1Q FY2017(June 1, 2017 to August 31, 2017)
Business segment
Orders Received
Balance(Millions of yen)
(Millions of yen)Transportation Systems
6,992
27,849Industrial Systems
2,553
8,187
Information Equipment Systems
936
1,627
Other1－Total
10,484
37,664
Notes: 1. Amounts are based on sales prices.
2. Amounts are exclusive of consumption and other taxes.
(c)

1Q FY2018(June 1, 2018 to August 31, 2018)
Orders ReceivedBalance(Millions of yen)
(Millions of yen)
5,567
23,862
4,363
8,277
248
327
6－
10,18532,467

Sales Status

1Q FY2017(June 1, 2017 to August 31, 2017)
Business segment
AmountShare(Millions of yen)(%)
Transportation Systems
4,929
70.8
Industrial Systems
1,805
25.9
Information Equipment Systems
222
3.2
Other10.0
Total
6,958
100.0
Notes: 1. Amounts are based on sales prices.
2. Amounts are exclusive of consumption and other taxes.

1Q FY2018(June 1, 2018 to August 31, 2018)
AmountShare(Millions of yen)
(%)
5,458
62.8
2,776
32.0
448
5.2
60.1
8,689
100.0