Summary of Consolidated Business Results for the First Three Quarters of Fiscal 2017
For the fiscal year ending May 31, 2018
April 13, 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: April 13, 2018 Scheduled date of commencement of dividend payments: 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 Three Quarters of Fiscal 2017 (June 1, 2017 to February 28, 2018)(1) Consolidated Operating Results(In millions of yen, except where noted; percentage figures show year-on-year increase or decrease.)
Net Income Attributable
Net Sales
Operating Income
Ordinary Incometo Owners of the Parent
Millions of yen%3Q Fiscal 201727,947
3Q Fiscal 2016
27,060(Note) Comprehensive income:Net Income perShare
3Q Fiscal 2017
3Q Fiscal 2016

Millions of yen

3.3
(5.5)
3Q Fiscal 2017:
3Q Fiscal 2016

%

(602)
241(70.5)904 million yen
227 million yen

Millions of yen%

Millions of yen%(306)
434(40.1)[297.5%]
[- %]

28229

(87.5)(30.4)

Diluted Net Incomeper Share

Yen

Yen

3.04
24.22

-(2) Consolidated Financial Position
Total Assets
Millions of yen

As of February 28, 2018
As of May 31, 2017
(Reference) Shareholders’ equity:2.

Shareholders’ Equity
Ratio (%)

Net Assets
Millions of yen

62,64754,927
As of February 28, 2018
As of May 31, 2017

40.3
44.8

Dividend Information
1Q

Annual Dividend (Yen)
3Q
Fiscal Year-End

InterimYen

Yen

Fiscal 2016
0.00
Fiscal 2017
0.00
Fiscal 2017 (Forecast)(Note) Revisions to the most recently announced dividend forecasts: No

3.

%

25,222
24,60325,222 million yen
24,603 million yen

Total

Yen

Yen

Yen-30.00

30.00

30.00

30.00

Consolidated Performance Forecast for Fiscal 2017 (June 1, 2017 to May 31, 2018)(In millions of yen, except where noted; percentage figures show year-on-year increase or decrease.)
Net Income
Attributable toNet Income perNet Sales
Operating Income
Ordinary Income
Owners of the Parent
Share (Yen)Millions of yen%

Millions of yen%

Millions of yen

Full year
41,0000.8
1,300 (17.3)(Note) Revisions to the most recently announced performance forecast:-1-1,450No%

Millions of yen%

Yen(12.8)

1,500

27.7

158.24

* Notes:(1) Transfers of major subsidiaries during the period:No(2) Application of Special Accounting Practices for the Preparation of QuarterlyConsolidated Financial Statement:

No(3) Changes in accounting policies, changes in accounting estimates, and restatement

:

No:

No

(b) Any changes other than (a) above

:

No

(c)

:

No:

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)(a)

Changes in accounting policies in accordance with revisions toaccounting standards and related practices

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)February 28,
2018:9,735,000
sharesMay 31,
2017

9,735,000
sharesFebruary 28,
2018:291,549
sharesMay 31,
2017

290,569
shares3Q Fiscal
2017:9,443,860
shares3Q Fiscal
2016:

9,491,196 shares* The Company conducted a share consolidation of its common shares at a ratio of 5 shares to 1 effective
December 1, 2016. Number of shares outstanding (common stock) is calculated on the assumption thatthe share consolidation was conducted at the beginning of the previous fiscal year.
* Quarterly financial reports are not subject to quarterly review procedures.
* 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 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-lookingInformation” in the Accompanying Materials on page 3 for details relating to forecasts of operating
results (available in Japanese only).

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

-2-

Toyo Denki Seizo K. K. (6505) Summary of Consolidated Business Results for the First Three Quarters of Fiscal 20172.

Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
End of the First Three
Quarters of Fiscal 2017
(February 28, 2018)

As of May 31, 2017
AssetsCurrent assets
Cash and cash equivalents

2,091

1,469

Trade notes and accounts receivable

15,83015,061

531

565

Electronically recorded monetary claims - operating
Products and finished goods

870

2,357

Work in process

3,373

4,814

Raw materials and stored goods

2,234

3,041

Advances

26

48

Deferred tax assets

576

678

Other accounts receivable

165

34

Other99

1,047

Allowance for doubtful accounts

(1)

(1)

25,79929,116

Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures

7,415

12,083

Accumulated depreciation(4,710)(4,787)

Buildings and structures, net

2,704

7,296

Machinery and equipment

7,030

7,391

(6,239)(6,472)

791

918

Land

1,345

1,305

Construction in progress

2,336

461

Accumulated depreciation
Machinery and equipment, net

Other

3,363

3,703

(2,920)(3,056)

443

646

7,622

10,629Software163

920

Software in progress

906

10

Other

11

15

1,081

946

18,15419,099

66

42

2,215

2,826

Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets

Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
OtherAllowance for doubtful accounts

(12)

(12)

Total investments and other assets

20,424

21,954

29,12833,53054,92762,647

Total fixed assets
Total assets-3-Toyo Denki Seizo K. K. (6505) Summary of Consolidated Business Results for the First Three Quarters of Fiscal 2017
(Millions of yen)
End of the First Three
Quarters of Fiscal 2017
(February 28, 2018)

As of May 31, 2017
Liabilities
Current liabilities
Trade notes and accounts payable

3,346

4,161

Electronically recorded obligations - operating

5,489

6,516

Short-term debt

4,969

9,280

Income taxes payable

437

0Consumption and other taxes payable

134

19

Accrued expenses

1,069

865

Advances received

119

148

Deposits received

235

271

Reserve for directors’ bonuses

33

33

Reserve for employees’ bonuses

952

477

Reserve for order losses

365

566

Other389

799

17,54323,140

6,786

8,149

Total current liabilities
Long-term liabilities
Long-term debt
Long-term payables

157

35

Net defined benefit liability

3,913

3,842

Deferred tax liabilities

1,792

2,181

131

74

12,78014,28330,32437,424

4,998

4,998

Capital surplus

3,177

3,177

Retained earnings

10,1709,915

Treasury stock

(477)

(479)

17,86817,611

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

Total shareholders’ equity
Accumulated other comprehensive income
Unrealized holding gain on available-for-sale securities

6,879

7,658

Foreign currency translation adjustments156214

Adjustments of defined benefit plans

(300)

(262)

Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets-4-6,735

7,610

24,60325,222

54,92762,647

Toyo Denki Seizo K. K. (6505) Summary of Consolidated Business Results for the First Three Quarters of Fiscal 2017(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income for the First Three Quarters
3Q FY2016(June 1, 2016 to February
28, 2017)(Millions of yen)
3Q FY2017(June 1, 2017 to February
28, 2018)

Net Sales

27,06027,947

Cost of sales

21,07522,708Gross profit

5,985

5,238

Selling, general and administrative expenses

5,744

5,840

241(602)

Operating income (loss)
Non-operating income
Interest income

00

Dividend income

214

222

Equity in profit of unconsolidated subsidiaries and affiliates

41

95

Foreign exchange gains-

29

Gain on reversal of environmental expenses-

40

Miscellaneous income

54

48

Total non-operating income

311

437

Interest expense

85

110

Loss on disposal of fixed assets

30

Foreign exchange losses

4-

Commission fee-

14

Miscellaneous loss

2415

Total non-operating expenses

118

141

434(306)

Gain on sales of investment securities-443

Other-

2

Total extraordinary income-446

Loss on sales of fixed assets

23

7

Total extraordinary losses

23

7

Income before income taxes

411

132

Income taxes: Current

228

147

Income taxes: Deferred(47)(43)

Total income taxes

181

104

Net income

229

28

Net Income Attributable to Owners of the Parent

229

28

Non-operating expenses

Ordinary income (loss)
Extraordinary income

Extraordinary loss-5-

Toyo Denki Seizo K. K. (6505) Summary of Consolidated Business Results for the First Three Quarters of Fiscal 2017

Consolidated Statements of Comprehensive Income for the First Three Quarters
3Q FY2016(June 1, 2016 to February
28, 2017)(Millions of yen)
3Q FY2017(June 1, 2017 to February
28, 2018)

229

28

Unrealized holding gain on available-for-sale securities

188

779

Foreign currency translation adjustments

(13)

46

Adjusted amounts of defined benefit plans
Share of other comprehensive income of affiliates to which theequity method is applied

3838

(215)

11

Total other comprehensive income

(2)

875

Comprehensive income227904227904--Net income
Other comprehensive income

Comprehensive income attributable to:
Owners of the parent
Non-controlling interests-6-Toyo Denki Seizo K. K. (6505) Summary of Consolidated Business Results for the First Three Quarters of Fiscal 2017(3) Segment Information(Notes on going concern assumption)
Not applicable(Notes on significant changes in the amount of shareholders’ equity)
Not applicable(Segment Information)
Segment Information:
The First Three Quarters of Fiscal 2016 (June 1, 2016 to February 28, 2017)
Information regarding Net Sales and Income (Loss) by Reporting SegmentReporting Segment

Net Sales
Sales to third parties
Inter-segment sales andtransfers
Total
Segment profit(Millions of yen)AmountRecorded on
Adjustment
Quarterly
AmountConsolidated
Statements of(Notes2)
Income(Notes3)

Transportation
Systems

Industrial
Systems

Information
Equipment
Systems

Other(Notes1)

18,583

7,322

1,150

4

27,060-27,060192-

496

518(518)-

18,602
1,740

7,324
223

1,150
243

501
37

27,5792,245(518)(2,003)27,060241

Total

Notes: 1 The “Other” segment includes operations not included in reporting segments such as the dispatch oftemporary staff.
2 The segment profit adjustment amount is a loss of 2,003 million yen. This is comprised of an elimination ofinter-segment sales and transfer amount at a loss of 0 million yen and corporate expenditure (a loss of 2,003
million yen) that is not allocated to each reporting segment. Corporate expenditure is primarily comprisedof selling, general and administrative expenses as well as research and development costs that are notallocated to each reporting segment.
3 Segment profit has been adjusted with operating income recorded under the quarterly consolidated
statements of income.

The First Three Quarters of Fiscal 2017 (June 1, 2017 to February 28, 2018)
Information regarding Net Sales and Income (Loss) by Reporting Segment
Reporting Segment

Net Sales
Sales to third parties
Inter-segment sales andtransfers
TotalSegment profit (loss)(Millions of yen)AmountRecorded on
Adjustment
Quarterly
AmountConsolidated
Statements of(Notes2)
Income(Notes3)

Transportation
Systems

Industrial
Systems

Information
Equipment
Systems

Other(Notes1)

18,409

8,026

1,506

4

27,947-

27,947131-

542

557(557)-

18,422
1,372

8,027
(21)

1,506
156

547
29

28,5041,535(557)(2,137)

27,947
(602)

Total

Notes: 1 The “Other” segment includes operations not included in reporting segments such as the dispatch oftemporary staff.

-7-Toyo Denki Seizo K. K. (6505) Summary of Consolidated Business Results for the First Three Quarters of Fiscal 2017

2 The segment profit (loss) adjustment amount is a loss of 2,137 million yen. This is comprised of anelimination of inter- segment sales and transfer amount at a loss of 1 million yen and corporate expenditure(a loss of 2,136 million yen) that is not allocated to each reporting segment. Corporate expenditure isprimarily 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.
3.

Other

(1) The Status of Production, Orders, and Sales(a)

Production Status

3Q FY2016(June 1, 2016 to February 28, 2017)
Business segment
AmountShare(Millions of yen)(%)
Transportation Systems
19,411
71.9
Industrial Systems
7,159
26.5
Information Equipment Systems
425
1.6OtherTotal
26,996100.0
Notes: 1 Amounts are based on sales prices.
2 Amounts are exclusive of consumption and other taxes.

3Q FY2017(June 1, 2017 to February 28, 2018)
AmountShare(Millions of yen)(%)
19,424
67.8
8,696
30.3
536
1.9
28,657100.0(b) Status of Orders Received
3Q FY2016(June 1, 2016 to February 28, 2017)
Business segment
Orders ReceivedBalance(Millions of yen)
(Millions of yen)Transportation Systems
20,48826,806
Industrial Systems
8,070
6,778
Information Equipment Systems
1,491
853
Other4
Total
30,05534,437Notes: 1 Amounts are based on sales prices.
2 Amounts are exclusive of consumption and other taxes.
(c)

3Q FY2017(June 1, 2017 to February 28, 2018)
Orders ReceivedBalance(Millions of yen)
(Millions of yen)
19,92427,489
8,208
7,331
2,034
1,440
4
30,171
36,262

Sales Status

3Q FY2016(June 1, 2016 to February 28, 2017)
Business segment
AmountShare(Millions of yen)(%)
Transportation Systems
18,583
68.7
Industrial Systems
7,322
27.1
Information Equipment Systems
1,150
4.3
Other40.0
Total
27,060100.0
Notes: 1 Amounts are based on sales prices.
2 Amounts are exclusive of consumption and other taxes.

-8-

3Q FY2017(June 1, 2017 to February 28, 2018)
AmountShare(Millions of yen)(%)
18,409
65.9
8,026
28.7
1,506
5.4
40.0
27,947100.0