October 11, 2012

Summary of Consolidated Business Results for the First Quarter of Fiscal 2012
For the fiscal year ending May 31, 2013
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
Hiroshi Tsuchida, President
Yoshifumi Otsubo, Operating Officer and General Manager, Management Planning
Division
TEL +81-3-5202-8122
Scheduled date of submission of quarterly financial report:
October 12, 2012
Scheduled date of commencement of dividend payments:—
Preparation of quarterly financial report supplemental explanatory materials: Yes
Holding of quarterly financial results briefing:No
Note: Amounts in financial statements and the supplementary data are rounded down.

1. Consolidated Business Results for the First Quarter of Fiscal 2012
(June 1, 2012 to August 31, 2012)(1) Consolidated Operating Results(In millions of yen, except where noted; percentage figures show year-on-year increase or decrease.)

1Q FY2012
1Q FY2011

Net Sales
6,120 (30.7)%
8,833(8.6)%

Operating Income(505)－
7 (97.0)%(Note) Comprehensive income: 1Q FY2012: (131) million yen (－%)
1Q FY2011: (289) million yen (－%)

1Q FY2012
1Q FY2011

Net Income
per Share (Yen)(13.09)(4.68)

Ordinary Income
(448)
－
(25)
－

Net Income
(631)
－
(225)
－

Diluted Net Income
per Share (Yen)－－(2) Consolidated Financial Position(In millions of yen, except where noted)

Total Assets
As of August 31, 2012
As of May 31, 2012

36,74338,086(Reference) Shareholders’ equity:

Net Assets
14,62815,049

Shareholders’Equity Ratio (%)
39.8
39.5

As of August 31, 2012: 14,628 million yen
As of May 31, 2012: 15,049 million yen

2. Dividend Information
1Q

Annual Dividend (Yen)
Fiscal YearInterim
3Q
End
0.00
－
6.00

FY2011－FY2012－FY2012 (Forecast)
0.00－(Note) Revisions to the most recently announced dividend forecasts: No

6.00

Total
6.00
6.00

3. Consolidated Performance Forecast for Fiscal 2012 (June 1, 2012 to May 31, 2013)(In millions of yen, except where noted; Percentage figures show year-on-year increase or decrease for the full fiscal year andincrease or decrease compared with the corresponding period of the previous fiscal year.)

Net Sales

Operating
IncomeOrdinary Income

Net Income

Net Income
per Share(Yen)(12.44)
16.59

First half
14,000 (25.7)%
(500)
－
(500)
－
(600)
－
Full year
38,500(0.2)%
1,700 (0.1)%
1,700 (5.0)%800
1.8%(Note) Revisions to the most recently announced performance forecast: Yes
We have revised the “Performance Forecast for Fiscal 2012” annouced on July 11, 2012. For details, please refer tothe “Toyo Denki Seizo Announces Details regarding Revisions to Performance Forecasts for the First Half (June 1,2012 to November 30, 2012) of FY2012.” disclosed today.

Notes:(1) Transfers of major subsidiaries during the period (transfers of specified subsidiaries accompanied by changes
in the scope of consolidation): No(2) Application of Special Accounting Practices for the Preparation of Quarterly Consolidated Financial
Statements: No(3) 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: Yes(d) Restatement: No(4) Shares outstanding (common stock)(a) Number of shares outstanding as of the end of the period (including treasury stock):
August 31, 2012: 48,675,000 shares
May 31, 2012: 48,675,000 shares(b) Number of shares of treasury stock as of the end of the period:
August 31, 2012: 459,020 shares
May 31, 2012: 458,570 shares(c) Average number of shares for the period (fiscal year-to-date):
1Q FY2012: 48,216,205 shares
1Q FY2011: 48,221,489 shares
Statements Regarding the Implementation Status of Quarterly Review Procedure
This quarterly financial report is not subject to quarterly review procedures as prescribed under the Financial
Instruments and Exchange Act. As of the date of quarterly financial report disclosure, however, a report on thereview of this quarterly financial report has been received.
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. cautions readers that due to a variety of factors
actual results may differ materially from forecasts. Please refer to “Qualitative Information regarding Consolidated
Performance Forecast” in Accompanying Materials on page 3 for details relating to operating results forecasts.

Accompanying Materials Contents
1.

Qualitative Information regarding Quarterly Consolidated Financial Report................................................. 2(1) Qualitative Information regarding Consolidated Business Results ................................................................. 2(2) Qualitative Information regarding Consolidated Financial Position ............................................................... 2(3) Qualitative Information regarding Consolidated Performance Forecast ......................................................... 3
2.
Items regarding Summary Information (Other) .............................................................................................. 3(1) Transfer of Major Subsidiaries during the Period ........................................................................................... 3(2) Application of Special Accounting Practices for the Preparation of
Quarterly Consolidated Financial Statements ................................................................................................. 3(3) Changes in Accounting Principles, Changes in Accounting Estimates, and Retrospective Restatements...... 3
3.
Quarterly Consolidated Financial Statements ................................................................................................. 4(1) Consolidated Balance Sheets .......................................................................................................................... 4(2) Consolidated Statements of Income and Comprehensive Income .................................................................. 6(Consolidated Statements of Income for the First Quarter of Fiscal 2012) .................................................. 6(Consolidated Statements of Comprehensive Income for the First Quarter of Fiscal 2012) ........................ 7(3) Notes on Going Concern Assumptions ........................................................................................................... 8(4) Segment Information ...................................................................................................................................... 8(5) Notes on Significant Fluctuations in Shareholders' Equity ............................................................................. 94.
Supporting Materials ..................................................................................................................................... 10(1) The Status of Production, Orders, and Sales ................................................................................................. 10-1-

1. Qualitative Information regarding Quarterly Consolidated Financial Report(1) Qualitative Information regarding Consolidated Business Results
During the first quarter (June 1, 2012 to August 31, 2012) of fiscal 2012, the fiscal year ending May 31, 2013,
economic conditions in Japan remained shrouded in uncertainty. Despite continued modest recovery on the back ofdemand for earthquake restoration and other factors, this uncertainty was largely attributable to the impacts of the
prolonged high value of the yen, a slowdown in overseas economies in connection with the debt crisis in Europe,and a decrease in exports to Asian countries.
Under these circumstances, the Toyo Denki Group has been working in unison to thoroughly strengthen its
management foundation and drastically improve its corporate value in the first year of “Dash 2015,” the Group’s
medium-term management plan launched in June 2012, in accordance with the plan.
The Toyo Denki Group's performance in the first quarter of fiscal 2012, the first fiscal year of the medium-term
management plan, was as follows.
Order received decreased 20.2% compared with the corresponding period of the previous fiscal year to 6,825
million yen. Despite an upswing in orders received for the period in the Industrial Systems segment, this overall
result reflected a significant decrease in orders received in the Transportation Systems segment.
Net sales decreased 30.7% year on year to 6,120 million yen. Despite an increase in the Information Equipment
Systems segment, this overall result reflected significant decreases in the Transportation Systems segment andIndustrial Systems segment.
From a profit perspective, Toyo Denki incurred an operating loss of 505 million yen. This represented anegative year-on-year turnaround of 513 million mainly attributable to the decrease in net sales. The Company also
incurred an ordinary loss of 448 million yen. This represented a negative year-on-year turnaround of 423 million
yen. The Company reports a net loss of 631 million yen for the period under review.
Looking at the overall nature and structure of the Group's business activities, sales are generally concentrated in
the fourth quarter of each fiscal year. As a result, consolidated operating results are impacted by seasonal factors.
Information by business segment is presented as follows.
(a) Transportation Systems
Orders received decreased both in and outside Japan. In overall terms, orders received decreased 47.7%
compared with the corresponding period of the previous fiscal year to 3,061 million yen. Net sales decreased
both in and outside Japan. In overall terms, net sales in this segment decreased 38.4% year on year to 3,699
million yen. Segment profit totaled 138 million yen.
(b) Industrial Systems
Orders received increased in Japan, largely thanks to growth in capital investment. In overall terms, orders
received increased 45.4% compared with the corresponding period of the previous fiscal year to 3,440 million
yen. Net sales, on the other hand, decreased 22.1% year on year to 2,119 million yen. In the period underreview, Toyo Denki recorded a loss of 184 million yen in this segment.
(c) Information Equipment Systems
Order received in the Information Equipment Systems segment contracted 1.9% compared with thecorresponding period of the previous fiscal year to 321 million yen. Net sales in this segment, however, surged
199.6% year on year to 3 million yen. This was largely attributable to the upswing in orders for IC-cardcompatible equipment relating particularly to railway station operations. In the first quarter of fiscal 2012, thissegment recorded an income of 58 million yen.
Note 1: Effective from the first quarter of fiscal 2012 in the reporting of reportable segments, the “Information
Systems” segment was renamed the “Information Equipment Systems” segment.
Note 2: Net sales data by business segment represents sales to third parties and is exclusive of inter-segment sales
and transfers.

(2) Qualitative Information regarding Consolidated Financial Position
Total assets as of August 31, 2012 stood at 36,743 million yen, a decrease of 1,342 million yen compared with theend of the previous fiscal year. Despite increases in investment securities of 717 million yen and inventories of 542
million yen, this decrease was largely attributable to a drop in trade notes and accounts receivable of 2,739 million
yen.
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Total liabilities amounted to 22,115 million yen, a decrease of 921 million yen compared with the previous
fiscal year end. This was largely attributable to a 615 million yen decrease in income taxes payable and a 441
million yen decrease in reserve for employees’ bonuses.
Net assets stood at 14,628 million yen, 420 million yen lower than the balance as of the previous fiscal yearend. Major movements were a 920 million yen decrease in retained earnings and a 469 million yen increase inunrealized holding gain on securities.
(3) Qualitative Information regarding Consolidated Performance Forecast
Toyo Denki revised its consolidated performance forecast for the first half of fiscal 2012 (June 1, 2012 toNovember 30, 2012) and announced the revised forecast today in a press release entitled, “Toyo Denki Seizo
Announces Details regarding Revisions to Performance Forecasts for the First Half (June 1, 2012 to November 30,2012) of FY2012.”
However, as of the compilation of this material, Toyo Denki has yet to revise the initially forecasted consolidated
performance for the full year, in light of uncertain factors in the future.

2. Items regarding Summary Information (Other)(1) Transfer of Major Subsidiaries during the Period
Not applicable.
(2) Application of Special Accounting Practices for the Preparation of Quarterly Consolidated Financial Statements
Not applicable.
(3) Changes in Accounting Principles, Changes in Accounting Estimates, and Retrospective Restatements(Changes in accounting principles difficult to distinguish from changes in accounting estimates)
Effective from the first quarter of fiscal 2012, Toyo Denki and its domestic consolidated subsidiaries have changed
the depreciation method for property, plant and equipment acquired on or after June 1, 2012 under the revised
Corporation Tax Act, in connection with the revision of the Act.
The change in this method had no significant impact on operating loss, ordinary loss, or loss before income taxes
and minority interests for the first quarter of fiscal 2012.

-3-

3. Quarterly Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of May 31, 2012

End of the First Quarter of Fiscal
2012 (August 31, 2012)

AssetsCurrent assets
Cash and cash equivalents

1,489

1,467

Trade notes and accounts receivable

13,728

10,989Products and finished goods

1,598

1,435

Work in process

2,242

2,734

Raw materials and stored goods

1,690

1,904

694

621

Other
Allowance for doubtful accounts
Total current assets

(28)

(28)

21,415

19,123Fixed assets
Property, plant and equipment

6,279

6,915

Accumulated depreciation(3,905)(3,967)

Buildings and structures, net

2,373

2,947

Buildings and structures

Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment

6,404

6,650

(5,174)(5,266)

1,229

1,384

289

289

495

29

2,714

2,827

(2,242)(2,295)

472

532

4,861

5,183

279

278

Intangible assets
Software
Other

66

53

Total intangible assets

346

332

Investment securities

8,929

9,646

Other

2,550

2,473

Allowance for doubtful accounts

(16)

(16)

Total investments and other assets

11,463

12,103

16,67017,61938,08636,743

Investments and other assets

Total fixed assets
Total assets-4-

(Millions of yen)
As of May 31, 2012

End of the First Quarter of Fiscal
2012 (August 31, 2012)

Liabilities
Current liabilities
Trade notes and accounts payable

4,544

4,109

Short-term borrowings

6,376

7,276

Current portion of corporate bonds

160

160

Income taxes payable

473

23

Consumption and other taxes payable

185

20

Accrued expenses

2,909

2,564

Advances received

182

175

Deposits received

213

283

Reserve for employees’ bonuses

891

450

Reserve for directors’ bonuses

46

11

Reserve for order losses

197

222

Other
Total current liabilities

540

799

16,72016,096Long-term liabilities

120

120

Long-term borrowings

2,729

2,475

Reserve for employees’ retirement benefits

3,136

3,158

Allowance for environmental development

43

43

Long-term payables

251

184

Other

35

35

Corporate bonds

6,316

6,018

23,036

22,115

Common stock

4,998

4,998

Capital surplus

3,177

3,177

Retained earnings

6,722

5,801

Total long-term liabilities
Total liabilities
Net assets
Shareholders' equity

Treasury stock

(162)

(162)

Total shareholders' equity

14,735

13,815

415

885

(102)

(72)

313

813

15,04914,62838,08636,743

Accumulated other comprehensive income
Unrealized holding gain on securities
Foreign currency translation adjustments
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets-5-(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statements of Income for the First Quarter of Fiscal 2012)(Millions of yen)
1Q FY2011(June 1, 2011 to August 31, 2011)

1Q FY2012(June 1, 2012 to August 31, 2012)

Net sales

8,833

6,120

Cost of sales

7,111

4,935

Gross profit

1,722

1,185

Selling, general and administrative expenses

1,714

1,691

7

(505)

Operating income (loss)
Non-operating income
Interest income

00Dividend income
Equity in earnings of unconsolidated subsidiaries andaffiliates
Miscellaneous income

66

78

3

36

15

18

Total non-operating income

85

132

32

43

Non-operating expenses
Interest expense
Loss on disposal of property, plant and equipment

13Foreign exchange loss

81

28

Miscellaneous loss

3

1

119

76

（25）

(448)

Loss on devaluation of investment securities－

1

Loss on disaster3－

Total special losses

3

1

(28)

(450)

Current

13

5

Deferred

183

174

196

180

Loss before minority interests

(225)

(631)

Net loss

(225)

(631)

Total non-operating expenses
Ordinary loss
Special losses

Loss before income taxes and minority interests
Income taxes:-6-

(Consolidated Statements of Comprehensive Income for the First Quarter of Fiscal 2012)(Millions of yen)
1Q FY2011(June 1, 2011 to August 31, 2011)

1Q FY2012(June 1, 2012 to August 31, 2012)

(225)

(631)

Unrealized holding gain (loss) on securities

(70)

469

Foreign currency translation adjustments
Share of other comprehensive income of affiliates
accounted for by the equity method
Total other comprehensive income

(4)

(1)

11

32

(63)

499

Comprehensive income

(289)

(131)

Owners of the parent

(289)

(131)

Minority interests－－

Loss before minority interests
Other comprehensive income

Comprehensive income attributable to:-7-(3) Notes on Going Concern Assumptions
Not applicable.
(4) Segment Information(a) The First Quarter of Fiscal 2011 (June 1, 2011 to August 31, 2011)
Information regarding Net Sales and Income (Loss) by Reporting Segment
Reporting Segment
Transportation Industrial Information
Systems
Systems
Equipment
Systems

Other1

Total(Millions of yen)AmountRecorded on
Adjustment Quarterly
Amount2
Consolidated
Statement of
Income3

Net sales
Sales to third parties
Inter-segment sales
and transfers

6,010

2,719

100

3

8,883

—

8,833

2

0

—

189

191

(191)

—

Total
6,012
2,719
100
192 9,025
(191)
8,833
Segment profit (loss)
582
(109)
(29)
8
451
(444)
7
Notes:
1. The “Other” segment includes operations not included in reporting segments such as core corporate systemadministration and the dispatch of temporary staff.
2. The segment profit (loss) adjustment amount is a loss of 444 million yen. This is comprised of anelimination of inter-segment sales and transfer amount of 2 million yen and corporate expenditure (a loss of
441 million yen) that is not allocated to each reporting segment. Corporate expenditure is primarily comprisedof selling, general and administrative as well as research and development costs that are not allocated toeach reporting segment.
3. Segment profit (loss) has been adjusted with operating income recorded under the quarterly consolidated
statement of income.

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(b) The First Quarter of Fiscal 2012 (June 1, 2012 to August 31, 2012)
Information regarding Net Sales and Income (Loss) by Reporting Segment
Reporting Segment
Transportation Industrial Information
Systems
Systems
Equipment
Systems

Other1

Total(Millions of yen)AmountRecorded on
Adjustment Quarterly
Amount2
Consolidated
Statement of
Income3

Net sales
Sales to third parties
Inter-segment sales
and transfers

3,699

2,119

300

1

6,120

—

6,120

1

0

—

129

130

(130)

—

Total
3,700
2,120
300
131 6,251
(130)
6,120
Segment profit (loss)
138
(184)
58
7
19
(525)
(505)
Notes:
1. The “Other” segment includes operations not included in reporting segments such as core corporate systemadministration and the dispatch of temporary staff.
2. The segment profit (loss) adjustment amount is a loss of 525 million yen. This is comprised of anelimination of inter-segment sales and transfer amount of 0 million yen and corporate expenditure (a loss of
525 million yen) that is not allocated to each reporting segment. Corporate expenditure is primarily comprisedof selling, general and administrative as well as research and development costs that are not allocated toeach reporting segment.
3. Segment profit (loss) has been adjusted with operating loss recorded under the quarterly consolidated
statement of income.
4. Effective from the first quarter of fiscal 2012 in the reporting of reportable segments, the “Information
Systems” segment was renamed the “Information Equipment Systems” segment.
(5) Notes on Significant Fluctuations in Shareholders’ Equity
Not applicable.

-9-4. Supporting Materials(1) The Status of Production, Orders, and Sales(a) Production Performance
1Q FY2011
1Q FY2012(June 1, 2011 to August 31, 2011)(June 1, 2012 to August 31, 2012)
Business segment
Millions of yen
Share (%)
Millions of yen
Share (%)
Transportation Systems
6,017
70.4
3,302
61.1
Industrial Systems
2,452
28.7
1,812
33.5
Information Equipment
78
0.9
287
5.3
Systems
Other
—
—
—
—
Total
8,548
100.0
5,402
100.0
Notes:
1. Amounts are based on sales prices.
2. Amounts are exclusive of consumption and other taxes.
3. Effective from the first quarter of fiscal 2012 in the reporting of reportable segments, the “Information
Systems” segment was renamed the “Information Equipment Systems” segment.
(b) Status of Orders Received
Business segment

1Q FY2011(June 1, 2011 to August 31, 2011)
Orders Received
Balance(Millions of yen)
(Millions of yen)
5,854
20,7692,365
4,313

1Q FY2012(June 1, 2012 to August 31, 2012)
Orders Received
Balance(Millions of yen)
(Millions of yen)
3,061
13,801
3,440
6,162

1Q FY2011(June 1, 2011 to August 31, 2011)
Millions of yen
Share (%)
6,010
68.0
2,719
30.8

1Q FY2012(June 1, 2012 to August 31, 2012)
Millions of yen
Share (%)
3,699
60.4
2,119
34.6

Transportation Systems
Industrial Systems
Information Equipment
327
368
321
573
Systems
Other
—
—
1
—
Total
8,548
25,451
6,825
20,537
Notes:
1. Amounts are based on sales prices.
2. Amounts are exclusive of consumption and other taxes.
3. Effective from the first quarter of fiscal 2012 in the reporting of reportable segments, the “Information
Systems” segment was renamed the “Information Equipment Systems” segment.
(c) Sales Performance
Business segment

Transportation Systems
Industrial Systems
Information Equipment
100
1.1
300
4.9
Systems
Other
3
0.0
1
0.0
Total
8,833
100.0
6,120
100.0
Notes:
1. Amounts are exclusive of consumption and other taxes.
2. Looking at the overall nature and structure of the Group business activities, sales are generally concentrated in
the fourth quarter of each fiscal year. As a result, consolidated operating results are impacted by seasonal
factors.
3. Effective from the first quarter of fiscal 2012 in the reporting of reportable segments, the “Information
Systems” segment was renamed the “Information Equipment Systems” segment.

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