Summary of Consolidated Business Results for the First Quarter of Fiscal 2021
October 13, 2021
Toyo Denki Seizo K.K.
Stock Exchange: 1st Section of the Tokyo Stock Exchange6505
URL
https://www.toyodenki.co.jp
Akira Watanabe, President
Toshihito Nakanishi, Operating Officer, General Manager, Management Planning Department
TEL: +81-3-5202-8122
Scheduled date of submission of quarterly financial report: October 14, 2021
Scheduled date of commencement of dividend payments: —Preparation of quarterly financial report supplemental explanatory materials: Yes
Holding of quarterly financial results briefing: Yes

Company Name:
Stock Code:
Representative
Inquiries:(Note: Amounts less than one million yen in financial statements and supplementary data are rounded down.)

1.

Consolidated Business Results for the First Quarter of Fiscal 2021 (June 1, 2021 to August 31, 2021)(1)

Consolidated Operating Results(Percentage figures show year-on-year increase or decrease.)
Net sales

Operating Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

6,752
7,848

(14.0)(11.2)

(339)
169

——

(145)
265

——

114
315

(63.8)
245.91Q Fiscal 2021
1Q Fiscal 2020

(Note) Comprehensive income:

1Q Fiscal 2021
1Q Fiscal 2020

Net Income per Share
1Q Fiscal 2021
1Q Fiscal 2020(2)(75) million yen [-%]
(815) million yen [-%]

Diluted Net Incomeper ShareYenYen

12.76
35.24

—
—

Consolidated Financial Position
Total Assets(Reference) Shareholders’ equity:

Shareholders’ Equity
Ratio

Net Assets

Millions of yen

Millions of yen%

51,80051,967

23,66424,00845.7
46.2

As of August 31, 2021
As of May 31, 2021

2.

Net Income Attributable toOwners of the Parent

Ordinary IncomeAs of August 31, 2021 23,664 million yen
As of May 31, 2021
24,008 million yen

Dividend Information
Annual Dividend
1Q

Fiscal 2020
Fiscal 2021

Interim

3Q

Fiscal Year-End

Total

Yen

Yen

Yen

Yen

Yen

——

0.00

—

30.00

30.00

—

30.00

30.00

Fiscal 2021 (Forecast)—(Note) 1. Revisions to the most recently announced dividend forecast: No3.

Consolidated Performance Forecast for Fiscal 2021 (June 1, 2021 to May 31, 2022)(Percentage figures show year-on-year increase or decrease.)
Net SalesFirst 6 months
Full year

Operating Income

Net IncomeAttributable toOwners of theParent

Ordinary Income

Net Incomeper Share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

15,00034,000(10.3)
2.6(100)
450

—
6.2

50700(85.9)
(7.6)

150
800

(66.8)(18.2)

16.78
89.48

(Note) Revisions to the most recently announced performance forecast:No* 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) 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(Note) For details, please refer to “(3) Notes on Consolidated Financial Statements (Changes in accounting policies)” in “2.
Consolidated Financial Statements,” on page 7.

(4)

Shares outstanding (common stock)(a) Number of shares outstanding as of the end of
the period (including treasury stock):

1Q Fiscal 2021

9,735,000 sharesFiscal 2020

9,735,000 shares(b) Number of shares of treasury stock as of theend of the period:

1Q Fiscal 2021

794,248 sharesFiscal 2020

794,128 shares(c) Average number of shares for the period(fiscal year-to-date):

1Q Fiscal 2021

8,940,797 shares

1Q Fiscal 2020

8,941,537 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 for business results presented in this document are based on management’s assumptions and beliefs in light ofcurrently available information. Toyo Denki cautions readers that due to a variety of factors actual results may differ materiallyfrom forecasts. Please refer to “Explanation of Consolidated Performance Forecast and Other Forward-looking Information” in theAccompanying 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 accordancewith accounting principles generally accepted Japan, for reference purpose only.

Summary of Consolidated Business Results for the First Quarter of Fiscal 2021
Toyo Denki Seizo K.K. (6505)

2.

Consolidated Financial Statements(1)

Consolidated Balance Sheets(Millions of yen)
Fiscal 2020
(As of May 31, 2021)

AssetsCurrent assets
Cash and cash equivalents
Trade notes and accounts receivable
Trade notes, accounts receivable, and contract assets
Electronically recorded monetary claims - operating
Products and finished goods
Work in process
Raw materials and stored goods
Advances
Other accounts receivable
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipmentIntangible assets
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets

1Q Fiscal 2021
(As of August 31, 2021)

3,964
13,218
—
901
514
3,565
2,821
7114
196
(2)
25,3004,387—
13,222
869
631
3,540
2,706
19
120
253
(1)
25,74812,338(5,928)6,410
8,397(7,430)
966
1,301
24
4,857
(4,234)622
9,325

12,342(6,031)
6,311
8,390(7,488)
902
1,301
19
4,879
(4,297)
581
9,115

289
14
303

241
14
256

13,832
223
2,988
(6)
17,037
26,666
51,967

13,584
204
2,898
(6)
16,68026,05251,800Summary of Consolidated Business Results for the First Quarter of Fiscal 2021
Toyo Denki Seizo K.K. (6505)(Millions of yen)
Fiscal 2020
(As of May 31, 2021)
Liabilities
Current liabilities
Trade notes and accounts payable
Electronically recorded obligations - operating
Short-term debt
Accrued expenses
Income taxes payable
Consumption and other taxes payable
Advances received
Contract liabilitiesDeposits received
Reserve for directors’ bonuses
Reserve for employees’ bonuses
Reserve for order losses
Other
Total current liabilities
Long-term liabilities
Long-term debt
Long-term payables
Deferred tax liabilities
Net defined benefit liability
Other
Total long-term liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Unrealized holding gains on available-for-sale securities
Foreign currency translation adjustments
Adjustments of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

1Q Fiscal 2021
(As of August 31, 2021)

1,668
4,705
2,085
611
161
207
34
—
193
36
827
871
224
11,628

1,609
4,104
3,685
608
44
140
—
85
288
9
423
874
224
12,10011,759
17
427
4,124
1
16,33027,958

11,555
17
315
4,146
1
16,03528,136

4,998
3,177
12,320(1,281)
19,214

4,998
3,177
12,166(1,281)
19,0604,803
88(97)
4,793
24,00851,967

4,628
66
(91)
4,604
23,66451,800(2)Summary of Consolidated Business Results for the First Quarter of Fiscal 2021
Toyo Denki Seizo K.K. (6505)
Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income for the First Quarter

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividend income
Equity in profit of unconsolidated subsidiaries and affiliates
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Equity in loss of unconsolidated subsidiaries and affiliates
Loss on disposal of fixed assets
Foreign exchange losses
Miscellaneous loss
Total non-operating expenses
Ordinary income (loss)
Extraordinary income
Gain on sales of investment securities
Gain on the reversal of foreign currency translation
adjustments
Total extraordinary income
Income before income taxes
Income taxes: Current
Income taxes: DeferredTotal income taxes
Net income
Net income attributable to owners of the parent

1Q Fiscal 2020
(June 1, 2020, to August 31,2020)
7,848
5,974
1,873
1,703
169

(Millions of yen)
1Q Fiscal 2021
(June 1, 2021, to August 31,2021)
6,752
5,415
1,337
1,676(339)

0132
—6139

083
118
12214

178051344
265

15
—02
120(145)206

162－206
471
136
20156
315
315

94
256
110
15(19)(3)
114114

Summary of Consolidated Business Results for the First Quarter of Fiscal 2021
Toyo Denki Seizo K.K. (6505)
Consolidated Statements of Comprehensive Income for the First Quarter

Net income
Other comprehensive income
Unrealized holding gains on available-for-sale securities
Foreign currency translation adjustments
Adjusted amounts of defined benefit plans
Share of other comprehensive income of affiliates to which
the equity method is applied
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of the parent
Non-controlling interests

1Q Fiscal 2020
(June 1, 2020, to August 31,2020)
315(Millions of yen)
1Q Fiscal 2021
(June 1, 2021, to August 31,2021)
114(1,133)17
11(174)
2
6(25)

(24)

(1,130)
(815)

(189)
(75)

(815)
—

(75)
—

Summary of Consolidated Business Results for the First Quarter of Fiscal 2021
Toyo Denki Seizo K.K. (6505)(3)

Notes on Consolidated Financial Statements(Notes on Going Concern Assumption)
Not applicable(Notes on Significant Changes in the Amount of Shareholders’ Equity)
Not applicable(Changes in accounting policies)(Application of Accounting Standard for Revenue Recognition, Etc.)
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) andrelevant ASBJ regulations effective from the beginning of the fiscal period under review, and it has recognized revenue at the time
the control of promised goods or services is transferred to the customer in the amount expected to be received upon exchange of said
goods or services.
In addition, the Company applies the alternative practice provided in Paragraph 98 of the Guidance on Accounting Standard for
Revenue Recognition and recognizes revenue upon shipment of goods or products sold in Japan, if the period from shipment totransfer of control of the goods or products to the customer is of normal length.
As for construction contracts, the Company has conventionally applied the percentage-of-completion method to the portion of ongoing construction with a certainty of delivery, and the completion contract method to others. However, as for contracts whereperformance obligations are fulfilled through a certain period from the fiscal period under review, the Company has shifted to amethod in which it estimates the percentage of completion concerning the fulfillment of performance obligations and recognizes
revenue based on the completion status for a certain period. As for contracts where performance obligations are fulfilled at a certain
point of time, the Company has shifted to a method in which it recognizes revenue at the completion of construction, etc. The
percentage of completion concerning the fulfillment of performance obligations is estimated based on the ratio of incurred cost togross estimated cost (input method).
Application of the Accounting Standard for Revenue Recognition, etc. is subject to the transitional treatment provided for in theproviso to Paragraph 84 of the Accounting Standard for Revenue Recognition. The cumulative effect of retrospective application,
assuming the new accounting policy had been applied to periods prior to the beginning of the fiscal period under review, was added
to or deducted from the opening balance of retained earnings of the fiscal period under review, and thus the new accounting policy
was applied from such opening balance.
There is no impact on the profit and loss of the quarter under review as a result of this change. There is also no impact on thebeginning balance of retained earnings.
Due to the application of the Accounting Standard for Revenue Recognition, “Trade notes and accounts receivable,” which werepresented under “Current assets” in the consolidated balance sheet for the previous fiscal year, are included in “Trade notes, accounts
receivable, and contract assets” from the fiscal period under review, and “Advances received,” which were presented under “Currentliabilities,” are included in “Contract liabilities” from the fiscal period under review. In accordance with the transitional treatment
provided for in Paragraph 89-2 of the Accounting Standard for Revenue Recognition, figures for the previous fiscal year have notbeen restated in accordance with the new approach to presentation.
(Application of Accounting Standard for Fair Value Measurement, Etc.)
The “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019 ) and relevant ASBJ regulations havebeen applied from the beginning of the fiscal period under review, and in accordance with the transitional treatment provided for inParagraph 19 of the Accounting Standard for Fair Value Measurement and Paragraph 44-2 of the “Accounting Standard for Financial
Instruments” (ASBJ Statement No. 10, July 4, 2019), the new accounting policy set forth by the Accounting Standard for Fair Value
Measurement, etc. is applied prospectively. There was no impact on the quarterly consolidated financial statements.

Summary of Consolidated Business Results for the First Quarter of Fiscal 2021
Toyo Denki Seizo K.K. (6505)(Segment Information)[Segment Information]
1Q Fiscal 2020 (June 1, 2020 to August 31, 2020)
Information regarding Net Sales and Income (Loss) by Reporting Segment(Millions of yen)
Reporting Segment

Net sales
Sales to third parties
Inter-segment sales
and transfers
Total
Segment profit (loss)(Notes)1.
2.

3.

AmountRecorded on
Consolidated
Statementsof Income(Note 3)

Transportation
Systems

Industrial
Systems

Information
Equipment
Systems

Other(Note 1)

Total

Adjustment
Amount(Note 2)

5,142

2,398

305

1

7,848

—

7,848

10—

8890(90)

—

5,143

2,399

305

90

7,938(90)

7,848

586

190

106(11)872(702)

169The “Other” segment includes operations not included in reporting segments such as the dispatch of temporary staff.
The segment profit (loss) adjustment amount is a loss of 702 million yen. This is comprised of an elimination ofintersegment sales and transfer amount of a loss of 1 million yen and corporate expenditure (a loss of 704 millionyen) that is not allocated to each reporting segment. Corporate expenditure is primarily comprised of selling, generaland administrative expenses, as well as research and development costs that are not allocated to each reportingsegment.
Segment profit (loss) has been adjusted with operating income recorded under the quarterly consolidated statements
of income.

1Q Fiscal 2021 (June 1, 2021 to August 31, 2021)
Information regarding Net Sales and Income (Loss) by Reporting Segment(Millions of yen)
Reporting Segment

Net sales
Sales to third parties
Inter-segment sales
and transfers
Total
Segment profit (loss)(Notes)1.
2.

3.

Transportation
Systems

IndustrialSystems

Information
Equipment
Systems

Other(Note 1)

Total

Adjustment
Amount(Note 2)

AmountRecorded onConsolidated
Statementsof Income(Note 3)

4,752

1,883114

2

6,752—6,75200—

8990(90)

—

4,753

1,883

114

91

6,843(90)

6,752

403

(65)

(5)

(4)

328

(668)

(339)

The “Other” segment includes operations not included in reporting segments such as the dispatch of temporary staff.
The segment profit (loss) adjustment amount is a loss of 668 million yen. This is comprised of an elimination ofintersegment sales and transfer amount of a loss of 0 million yen and corporate expenditure (a loss of 668 millionyen) that is not allocated to each reporting segment. Corporate expenditure is primarily comprised of selling, generaland administrative expenses, as well as research and development costs that are not allocated to each reporting
segment.
Segment profit (loss) has been adjusted with operating loss recorded under the quarterly consolidated statements ofincome.

Summary of Consolidated Business Results for the First Quarter of Fiscal 2021
Toyo Denki Seizo K.K. (6505)

3.

Other

(1)

Status of Production, Orders, and Sales(a) Production Status
Business segment

1Q Fiscal 2020
(June 1, 2020, to August 31, 2020)
Amount(Millions of yen)

1Q Fiscal 2021
(June 1, 2021, to August 31, 2021)

Share(%)

Amount(Millions of yen)

Share(%)

Transportation Systems

5,133

69.3

4,370

70.6

Industrial Systems

2,144

29.0

1,768

28.6

Information Equipment Systems

127

1.755

0.9

Other—

———

Total

7,406

100.0

6,194

100.0

Notes: Amounts are based on sales prices.
(b) Status of Orders Received
Business segment

1Q Fiscal 2020
(June 1, 2020, to August 31, 2020)
Orders Received(Millions of yen)

1Q Fiscal 2021
(June 1, 2021, to August 31, 2021)

Balance(Millions of yen)Orders Received(Millions of yen)

Balance(Millions of yen)Transportation Systems

4,49723,471

3,924

20,637

Industrial Systems

3,038

5,997

2,744

6,275

Information Equipment Systems

91

325

155

146

Other1—2—

Total

7,628

29,794

6,826

27,059Notes: Amounts are based on sales prices.
(c) Sales Status
Business segment

1Q Fiscal 2020
(June 1, 2020, to August 31, 2020)
Amount(Millions of yen)

1Q Fiscal 2021
(June 1, 2021, to August 31, 2021)

Share
(%)

Amount(Millions of yen)

Share
(%)

Transportation Systems

5,142

65.5

4,752

70.4

Industrial Systems

2,398

30.6

1,883

27.9

Information Equipment Systems

305

3.9

114

1.7

Other10.0

20.0

Total

7,848

100.0

6,752

100.0

Notes: Amounts are based on sales prices.