January 14, 2014

Summary of Consolidated Financial Results for the First Half of Fiscal 2013
For the fiscal year ending 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 submission of quarterly securities report:
January 14, 2014
Scheduled date of commencement of dividend payments:—
Preparation of quarterly financial results 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 the First Half of Fiscal 2013
(June 1, 2013 to November 30, 2013)(1) Consolidated Operating Results(In millions of yen, except where noted; percentage figures show year-on-year increase or decrease.)

First half, FY2013
First half, FY2012

Net Sales
15,826
16.7%
13,566(28.0)%

Operating Income
213
－
(515)
－
(Note) Comprehensive income: 1H FY2013: 731 million yen [369.6%]
1H FY2012: 155 million yen [(55.4)%]

First half, FY2013
First half, FY2012

Net Income
per Share (Yen)
1.20(8.32)

Ordinary Income
270
－
(283)
－

Net Income
57
－
(401)
－

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

Total Assets
As of November 30, 2013
As of May 31, 2013
(Reference) Shareholders’ equity:

46,03042,364

Net Assets
18,95918,519

Shareholders’Equity Ratio (%)
41.2
43.7

As of November 30, 2013: 18,959 million yen
As of May 31, 2013: 18,519 million yen

2. Dividend Information
Annual Dividend (Yen)
Fiscal Year1Q
Interim
3Q
End
FY2012
－
0.00
－
6.00
FY2013－0.00
FY2013 (Forecast)－
6.00(Note) Revisions to the most recently announced dividend forecasts: No

Total
6.00
6.00

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

Net Sales

Operating Income

Ordinary Income

Full fiscal year 36,000
17.7%
1,500 199.3%
1,500
30.4%
(Note) Revisions to the most recently announced performance forecast: No

Net Income
750

3.8%

Net Income
per Share
(Yen)
15.40

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: No(b) Any changes other than (a) above: No(c) Changes in accounting estimates: No(d) Restatement: No(4) Shares outstanding (common stock)(a) Number of shares outstanding as of the end of the period (including treasury stock):
November 30, 2013: 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:
November 30, 2013: 469,553 shares
May 31, 2013: 463,566 shares(c) Average number of shares for the period (fiscal year-to-date):
First half, FY2013: 48,208,868 sharesFirst half, FY2012: 48,215,544 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. (hereinafter Toyo Denki) cautions readers that due
to a variety of factors actual results may differ materially from forecasts. Please refer to “Explanation ofConsolidated Performance Forecast and Other Forward-looking Information” in Accompanying Materials on page
3 for details relating to operating results forecasts.

Accompanying Materials Contents
1.

Qualitative Information regarding Quarterly Financial Results ...................................................................... 2(1) Explanation of Consolidated Business Results ............................................................................................... 2(2) Explanation of Consolidated Financial Position ............................................................................................. 3(3) Explanation of Consolidated Performance Forecast and Other Forward-looking Information ...................... 3
2.
Items regarding Summary Information (Notes) .............................................................................................. 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) Quarterly Consolidated Balance Sheets .......................................................................................................... 4(2) Quarterly Consolidated Statements of Income and Comprehensive Income .................................................. 6
Quarterly Consolidated Statements of Income for the First Half of Fiscal 2013
Quarterly Consolidated Statements of Comprehensive Income for the First Half of Fiscal 2013
(3) Quarterly Consolidated Statements of Cash Flows ......................................................................................... 8(4) Notes to Quarterly Consolidated Financial Statements................................................................................... 9(Notes on Going Concern Assumptions) ................................................................................................... 9(Notes on Significant Fluctuations in Shareholders’ Equity) .................................................................... 9(Segment Information) .............................................................................................................................. 94.
Supporting Materials ..................................................................................................................................... 11(1) The Status of Production, Orders, and Sales ................................................................................................. 11-1-

1. Qualitative Information regarding Quarterly Financial Report(1) Explanation of Consolidated Business Results
During the first half (June 1, 2013 to November 30, 2013) of fiscal 2013, the fiscal year ending May 31, 2014, theeconomic recovery continues as exports, personal spending, and capital investment increased after the previous
declines amidst a correction of the yen appreciation and rising stock prices on the back of the wide effects ofeconomic policies and monetary easing policy of the current administration. On the other hand, the pace ofrecovery in overseas economies continued at a moderate level. While recovery of the United States economy wasmoderate and European economies were on a recovery track, recovery of the Chinese and Indian economies were
delayed.
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 the first half of fiscal 2013, the second fiscal year of the medium-term
management plan, was as follows.
Orders received increased 19.5% compared with the corresponding period of the previous fiscal year to 18,251
million yen. This overall result reflected a significant surge in orders received in the Transportation Systems
segment both in and outside Japan, in addition to an increase in orders received in the Industrial Systems segment
and the Information Equipment Systems segment.
Net sales increased 16.7% year on year to 15,826 million yen. Despite a decrease in the Information Equipment
Systems segment, this overall result reflected a significant surge in the Transportation Systems segment both in andoutside Japan, and an increase in the Industrial Systems segment.
From a profit perspective, operating income of 213 million yen was posted for the period under review. This
represented a positive year-on-year turnaround of 728 million yen attributable to increased net sales and a reduction
in expenses. Ordinary income was 270 million yen and net income was 57 million yen. These figures represented
also positive year-on-year turnaround of 553 million yen for ordinary income and 459 million yen for net income,respectively.
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 recorded a slight increase in Japan and saw a sharp upturn outside Japan, primarily in China. In
overall terms, orders received increased 33.5% compared with the corresponding period of the previous fiscal year
to 10,622 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 9,860 million yen representing 28.8% year-on-year increase.
Due to mainly to increased revenue, segment profit totaled 1,064 million yen representing 88.2% year-on-yearincrease.
(b) Industrial Systems
Orders received increased 3.8% compared with the corresponding period of the previous fiscal year to 6,592
million yen, due to an increase in orders for testing equipment for automobile development amidst subdued capital
investment both in and outside Japan.
Net sales in this segment increased 1.8% year on year to 5,332 million yen, mainly for the same reasons
underlying the increase in orders received.
In the period under review, this segment recorded a profit of 172 million yen, mainly attributable to improved
profitability of factories as a result of increased operating efficiency.
(c) Information Equipment Systems
Orders received in this segment increased 6.9% compared with the corresponding period of the previous fiscal
year to 1,034 million yen, due to a large order placed for remote monitoring systems, despite low performance inorders for railway station operating equipment.
Net sales in this segment decreased 5.9% year on year to 630 million yen, mainly due to a winding down indeliveries for ticket issuing handy terminals. In the first half of fiscal 2013, segment profit for this segment was 17
million yen.
-2-

Note: Net sales data by business segment represents sales to third parties and is exclusive of inter-segment sales
and transfers.
(2) Explanation of Consolidated Financial Position
Total assets as of November 30, 2013 stood at 46,030 million yen, an increase of 3,666 million yen comparedwith the end of the previous fiscal year. The increase in total assets was largely attributable to increases in cash andcash equivalents of 1,249 million yen, trade notes and accounts receivable of 710 million yen, inventories of 871
million yen, and investment securities of 860 million yen.
Total liabilities amounted to 27,070 million yen, an increase of 3,226 million yen compared with the previous
fiscal year end. The increase in total liabilities was largely attributable to an increase in borrowings of 2,217 million
yen.
Net assets stood at 18,959 million yen, 440 million yen higher than the balance as of the previous fiscal year
end. Major movements were a 563 million yen increase in unrealized holding gain on available-for-sale securities
and a 231 million yen decrease in retained earnings.
(3) Explanation of Consolidated Performance Forecast and Other Forward-looking Information
We have made no revision to the “Consolidated Performance Forecast for Fiscal 2013” announced on July 10, 2013.

2. Items regarding Summary Information (Notes)(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
Not applicable.

-3-3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of May 31, 2013

End of the First Half of Fiscal 2013
(November 30, 2013)

Cash and cash equivalents

1,302

2,551

Trade notes and accounts receivable

13,384

14,094

Products and finished goods

1,464

1,650

Work in process

3,081

3,616

Raw materials and stored goods

2,118

2,269

Other

632

643

Allowance for doubtful accounts

(40)

(40)

21,94324,785

AssetsCurrent assets

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

6,973

7,056

Accumulated depreciation(3,988)(4,114)

Buildings and structures, net

2,985

2,941

6,757

6,789

Accumulated depreciation(5,648)(5,835)

Machinery and equipment, net

1,108

954

289

289

Machinery and equipment

Land
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment

80

109

3,024

3,126

(2,476)(2,568)

547

557

5,012

4,852

274

262

Intangible assets
Software
Other

47

42

Total intangible assets

321

305

Investment securities

13,31814,178

Other

1,932

1,947

Allowance for doubtful accounts

(162)

(38)

Total investments and other assets

15,087

16,087

20,421

21,24542,36446,030Investments and other assets

Total fixed assets
Total assets-4-

(Millions of yen)
As of May 31, 2013

End of the First Half of Fiscal 2013
(November 30, 2013)

Trade notes and accounts payable

4,646

5,120

Short-term borrowings

Liabilities
Current liabilities
4,296

6,368

Current portion of corporate bonds

120

60

Income taxes payable

319

302

Consumption and other taxes payable

6730

Accrued expenses

2,883

3,255

Advances received

413

454

Deposits received

212

215

Reserve for directors’ bonuses

16

8

Reserve for employees’ bonuses

772

781

Reserve for order losses

196

144

Other
Total current liabilities

335

239

14,28016,979

5,413

5,558

Long-term liabilities
Long-term borrowings
Long-term payables
Reserve for employees’ retirement benefits

164

147

3,289

3,454

Allowance for environmental development

43

43

Other

653

886

9,564

10,09023,84427,070Capital stock

4,998

4,998

Capital surplus

3,177

3,177

Retained earnings

7,155

6,924

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

Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Unrealized holding gain on available-for-salesecurities
Foreign currency translation adjustments
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

-5-

(163)

(165)

15,167

14,934

3,367

3,930

(14)

94

3,352

4,025

18,51918,95942,36446,030(2) Quarterly Consolidated Statements of Income and Quarterly Comprehensive Income(Quarterly Consolidated Statements of Income for the First Half of Fiscal 2013)(Millions of yen)
1H FY2012
1H FY2013(June 1, 2012 to November 30, 2012) (June 1, 2013 to November 30, 2013)
Net sales

13,566

15,826

Cost of sales

10,466

12,161Gross profit

3,100

3,664

Selling, general and administrative expenses

3,615

3,451

Operating income (loss)

(515)

213

0

0

Dividend income
Equity in earnings of unconsolidated subsidiaries
and affiliates
Life insurance dividend income

103

115

43

—

85

3

Foreign exchange gains

91

36

Miscellaneous income

23

10

Total non-operating income

347

167

86

87

—

13

7

5

Non-operating income
Interest income

Non-operating expenses
Interest expense
Equity in loss of unconsolidated subsidiaries andaffiliates
Loss on disposal of fixed assets
Miscellaneous loss

21

3

Total non-operating expenses

115

110

(283)

270

15

—

15

—

(299)

270

Current

86

273

Deferred15(61)

Total income taxes

102

212

Income (loss) before minority interests

(401)

57

Net income (loss)

(401)

57

Ordinary income (loss)
Extraordinary losses
Office transfer expenses
Total extraordinary losses
Income (loss) before income taxes and minority
interests
Income taxes-6-

(Quarterly Consolidated Statements of Comprehensive Income for the First Half of Fiscal 2013)(Millions of yen)
1H FY2012
1H FY2013(June 1, 2012 to November 30, 2012) (June 1, 2013 to November 30, 2013)
Income (loss) before minority interests

(401)

57

Unrealized holding gain (loss) on securities

549

563

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

(2)

6

9

102

556

673

155

731

Owners of the parent

155

731

Minority interests——

Other comprehensive income

Comprehensive income
Comprehensive income attributable to:-7-(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)
1H FY2012
1H FY2013(June 1, 2012 to November 30, 2012) (June 1, 2013 to November 30, 2013)
Cash flows from operating activities
Income (loss) before income taxes and minority
interests
Depreciation and amortization

(299)

270

537

478

(4)

(124)

34

8

(1)

165

(103)

(115)

86

87

Trade notes and accounts receivable

1,899

(707)

Inventories

(949)

(868)

Trade notes and accounts payable

(357)

473

(3)

(52)

Reversal of allowance for doubtful accounts(Reversal of) provision for accrued employees’
bonuses
Reversal of provision for accrued retirement benefits
Interest and dividends income
Interest expenses

Reserve for losses on order acknowledgements
Advances received

(68)

30

Accrued expenses

(176)

377

Other

(374)

158

Subtotal219

180Interest and dividends income received

114

115

Interest expenses paid

(94)

(92)

Payments for corporate and other taxes

(448)

(343)

Net cash provided by (used in) operating activities

(208)

(139)

(841)

(419)

(6)

(6)

(177)

(65)

(1,025)(492)

Cash flows from investing activities
Purchases of property, plant and equipment
Purchases of investment securities
Other
Net cash used in investing activities
Cash flows from financing activities
Increase (decrease) in short-term loans payable

2,499

2,075

Increase in long-term debt—

700

Repayment of long-term debt

(638)

(558)

Redemption of bonds payable

(100)

(60)

Purchase of treasury stock
Cash dividends paid
Other

(0)

(1)

(223)

(286)

(0)

(0)

Cash provided by financing activities
Effect of exchange rate change on cash and cash
equivalents
Increase (decrease) in cash and cash equivalents

1,538

1,867

(4)

13

299

1,249

Cash and cash equivalents at the beginning of the period

1,489

1,302

Cash and cash equivalents at the end of the period

1,789

2,551

-8-

(4) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumptions)Not applicable.
(Notes on Significant Fluctuations in Shareholders’ Equity)
Not applicable.
(Segment Information)(a) The First Half of Fiscal 2012 (June 1, 2012 to November 30, 2012)
Information regarding Net Sales and Income (Loss) by Reporting Segment
Reporting Segment(Millions of yen)AmountRecorded on
Adjustment
Quarterly
Amount2
Consolidated
Statement of
Income3

Transportation
Systems

Industrial
Systems

Information
Equipment
Systems

Other1

Total

7,657

5,236

669

3

13,566—

13,566

6

1

—

277

285

(285)

—

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

Total
7,664
5,237
669
281 13,852(285)
13,566
Segment profit (loss)
565
(45)
54
21
596
(1,111)(515)
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 1,111 million yen. This is comprised of anelimination of inter-segment sales and transfer amount of 1 million yen and corporate expenditure (a loss of
1,110 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
statement of income.

-9-(b) The First Half of Fiscal 2013 (June 1, 2013 to November 30, 2013)
Information regarding Net Sales and Income (Loss) by Reporting Segment
Reporting Segment(Millions of yen)AmountRecorded on
Adjustment
Quarterly
Amount2
Consolidated
Statement of
Income3

Transportation
Systems

Industrial
Systems

Information
Equipment
Systems

Other1

Total

9,860

5,332

630

2

15,826—

15,826

7

0

—

248

256

(256)

—

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

Total
9,868
5,333
630
250 16,082(256)
15,826
Segment profit
1,064
172
17
23
1,277
(1,064)
213
Notes:
1. The “Other” segment includes operations not included in reporting segments such as the dispatch of temporary
staff.
2. The segment profit adjustment amount is a loss of 1,064 million yen. This is comprised of an elimination ofinter-segment sales and transfer amount of 2 million yen and corporate expenditure (a loss of 1,067 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 eachreporting segment.
3. Segment profit has been adjusted with operating income recorded under the quarterly consolidated
statement of income.

- 10 -

4. Supporting Materials(1) The Status of Production, Orders, and Sales(a) Production Performance
1H FY2012(June 1, 2012 to November 30, 2012)
Business segment
Orders Received
Balance(Millions of yen)
Share (%)
Transportation Systems
8,023
60.8
Industrial Systems
4,630
35.1
Information Equipment
552
4.2
Systems
Other
—
—
Total
13,206100.0
Notes:
1. Amounts are based on sales prices.
2. Amounts are exclusive of consumption and other taxes.

1H FY2013(June 1, 2013 to November 30, 2013)
Orders Received
Balance(Millions of yen)
Share (%)
10,277
65.5
4,958
31.6
455

2.9

—
15,691—
100.0(b) Status of Orders Received
Business segment

1H FY2012(June 1, 2012 to November 30, 2012)
Orders Received
Balance(Millions of yen)
(Millions of yen)
7,958
14,7406,348
5,953Transportation Systems
Industrial Systems
Information Equipment
967
849
Systems
Other
3
—
Total
15,27821,544
Notes:
1. Amounts are based on sales prices.
2. Amounts are exclusive of consumption and other taxes.

1H FY2013(June 1, 2013 to November 30, 2013)
Orders Received
Balance(Millions of yen)
(Millions of yen)
10,622
18,817
6,592
6,015
1,034

799

2
18,251—
25,632(c) Sales Performance
Business segment

1H FY2012(June 1, 2012 to November 30, 2012)
Orders Received
Balance(Millions of yen)
Share (%)
7,657
56.4
5,236
38.6

1H FY2013(June 1, 2013 to November 30, 2013)
Orders Received
Balance(Millions of yen)
Share (%)
9,860
62.3
5,332
33.7

Transportation Systems
Industrial Systems
Information Equipment
669
4.9
630
4.0
Systems
Other
3
0.0
2
0.0
Total
13,566100.0
15,826100.0
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.

- 11 -