Summary of Consolidated Business Results for the First Three Quarters of Fiscal 2020
April 12, 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: April 13, 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 Three Quarters of Fiscal 2020 (June 1, 2020 to February 28,2021)(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%

24,108(15.8)

33(93.0)326(52.5)

416(40.0)

28,621(3.2)

472—687—693294.2

First Three
Quarters of Fiscal
2020
First Three
Quarters of Fiscal
2019(Note) Comprehensive income:First Three Quarters of Fiscal 2020
First Three Quarters of Fiscal 2019

Net Income per ShareFirst Three
Quarters of Fiscal
2020
First Three
Quarters of Fiscal
2019
(2)

265 million yen [-%]
(1,250) million yen [-%]

Diluted Net Income
per Share

Yen

Yen

46.54

—

77.54

—

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

Net Assets

Shareholders’ Equity
Ratio

Millions of yen

Millions of yen%

55,02555,16524,18024,18343.9
43.8

First Three Quarters of Fiscal 2020
Fiscal 201924,183 million yen

24,180 million yen

As of February 28, 2021
As of May 31, 20202.

Net income attributable toowners of the parent

Ordinary income

Dividend Information
Annual Dividend (Yen)
1Q

Fiscal 2019
Fiscal 2020

Interim

3Q

Fiscal Year-End

Total

Yen

Yen

Yen

Yen

Yen

——

0.00
0.00

—
—

30.00

30.00

30.00

30.00

Fiscal 2020 (Forecast)(Note) Revisions to the most recently announced dividend forecast: No3.

Consolidated Performance Forecast for Fiscal 2020 (June 1, 2020 to May 31, 2021)(Percentage figures show year-on-year increase or decrease.)
Net sales
Millions of yen

Operating income%Millions of yen%

Net Income Attributableto Owners of the Parent

Ordinary income

Net Income perShare

Millions of yen%

Millions of yen%

Yen

Full year
34,000 (13.0)
250 (76.6)500(Note) Revisions to the most recently announced performance forecast: No(58.6)

700(35.3)

78.28* 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 company)
Excluded: - companies (name of 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: No(b) Any changes other than (1) 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 ofthe period (including treasury stock):

3Q Fiscal 20209,735,000 sharesFiscal 2019

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

3Q Fiscal 2020

793,888 sharesFiscal 2019

793,403 shares(c) Average number of shares for the period(fiscal year-to-date):

3Q Fiscal 2020

8,941,372 shares

3Q Fiscal 2019

8,941,867 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 of consolidated business results, which has been prepared inaccordance with accounting principles generally accepted in Japan, for reference purpose only.

Summary of Consolidated Business Results for the First Three Quarters of Fiscal 2020
Toyo Denki Seizo K.K. (6505)

2.

Consolidated Financial Statements(1)

Consolidated Balance Sheets(Millions of yen)
Fiscal 2019
(As of May 31, 2020)

AssetsCurrent assets
Cash and cash equivalents
Trade notes and accounts receivable
Electronically recorded monetary claims - operating
Products and finished goods
Work in process
Raw materials and stored goods
Advances
Other accounts receivableOther
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 equipment
Intangible assets
Software
Software in progress
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

3Q Fiscal 2020
(As of February 28, 2021)

3,293
14,135
1,538
756
3,424
2,996
13
39
86(0)
26,2843,720
14,0631,251555
3,985
3,166
28
94
292
(2)
27,156

12,269(5,515)
6,753
8,179(7,120)
1,059
1,301
86
4,654
(3,929)724
9,925

12,330(5,826)
6,504
8,316(7,374)
942
1,301
28
4,815
(4,166)
648
9,424

462
14
14
490

327
33
14
374

15,434
170
2,865
(6)
18,46328,88055,165

14,834
171
3,069
(6)
18,06927,86855,025

Summary of Consolidated Business Results for the First Three Quarters of Fiscal 2020
Toyo Denki Seizo K.K. (6505)(Millions of yen)
Fiscal 2019
(As of May 31, 2020)
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
Deposits received
Reserve for directors’ bonuses
Reserve for employees’ bonuses
Reserve for order losses
OtherTotal 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

3Q Fiscal 2020
(As of February 28, 2021)

2,224
5,877
2,207606
334
310
4519836876
732
218
13,669

1,735
5,026
4,685
663
58
32
84
202
27
413
842
270
14,043

12,344
25
930
4,010
3
17,31230,981

11,847
17
869
4,064
2
16,80030,844

4,998
3,177
11,610(1,280)18,505

4,998
3,177
11,758(1,281)
18,653

5,727
79
(129)
5,677
24,18355,165

5,502
121
(96)
5,527
24,18055,025

Summary of Consolidated Business Results for the First Three Quarters of Fiscal 2020
Toyo Denki Seizo K.K. (6505)(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income for the First Three Quarters
First Three Quarters of Fiscal 2020
(Millions of yen)First Three Quarters ofFirst Three Quarters ofFiscal 2019
Fiscal 2020
(June 1, 2019 to February(June 1, 2020 to February
29, 2020)
28, 2021)
Net sales
28,621
24,108
Cost of sales
22,78818,929Gross profit
5,833
5,179
Selling, general and administrative expenses
5,361
5,145
Operating income
472
33
Non-operating income
Interest income
10Dividend income
223
208
Equity in profit of unconsolidated subsidiaries and affiliates
4083
Foreign exchange gains—6Insurance claim income related to disaster
92
34
Miscellaneous income
3537
Total non-operating income
393
370
Non-operating expenses
Interest expenses
6750
Loss on disposal of fixed assets
00
Foreign exchange losses
30—
Disaster recovery expenses
68—
Miscellaneous loss
1025
Total non-operating expenses
177
76
Ordinary income
687
326
Extraordinary income
Gain on sales of investment securities
447
407
Total extraordinary income
447
407
Income before income taxes
1,135
734
Income taxes: Current
301
294
Income taxes: Deferred
140
23
Total income taxes
442
318
Net income
693
416
Net income attributable to owners of the parent
693416

Summary of Consolidated Business Results for the First Three Quarters of Fiscal 2020
Toyo Denki Seizo K.K. (6505)
Consolidated Statements of Comprehensive Income for the First Three Quarters
First Three Quarters of Fiscal 2020
(Millions of yen)First Three Quarters ofFirst Three Quarters ofFiscal 2019
Fiscal 2020
(June 1, 2019 to February(June 1, 2020 to February29, 2020)
28, 2021)
Net income
693
416
Other comprehensive income
Unrealized holding gains on available-for-sale securities(1,891)(225)
Foreign currency translation adjustments(11)50Adjusted amounts of defined benefit plans
35
33
Share of other comprehensive income of affiliates to which(76)(8)
the equity method is applied
Total other comprehensive income(1,943)(150)
Comprehensive income(1,250)265
Comprehensive income attributable to:
Owners of the parent(1,250)265
Non-controlling interests——

(3)Summary of Consolidated Business Results for the First Three Quarters of Fiscal 2020
Toyo Denki Seizo K.K. (6505)
Notes on Consolidated Financial Statements(Notes on Going Concern Assumption)
Not applicable(Notes on Significant Changes in the Amount of Shareholders’ Equity)
Not applicable(Segment Information)[Segment Information]
First Three Quarters of Fiscal 2019 (June 1, 2019 to February 29, 2020)
Information regarding Net Sales and Income (Loss) by Reporting Segment(Millions of yen)Transportation
Systems

Industrial
Systems

Information
Equipment
Systems

Other(Note 1)

Total

Adjustment
Amount(Note 2)

AmountRecorded on
Consolidated
Statementsof Income(Note 3)

17,610

9,667

1,339

4

28,621—

28,62140—391

396(396)—

17,615

9,667

1,339

395

29,018(396)28,621

1,459

772

388

52,627(2,154)

472

Reporting Segment

Net sales
Sales to third parties
Inter-segment salesand transfers
TotalSegment profit(Notes)1.
2.

3.

The “Other” segment includes operations not included in reporting segments such as the dispatch of temporary staff.
The amount of segment profit adjustment is a loss of 2,154 million yen. This is comprised of an elimination of intersegment sales and transfer amount of a loss of 0 million yen and corporate expenditure (a loss of 2,154 million yen)that is not allocated to each reporting segment. Corporate expenditure is primarily comprised of selling, general andadministrative expenses, as well as research and development costs that are not allocated to each reporting segment.
Segment profit has been adjusted with operating income recorded under the quarterly consolidated statements ofincome.

First Three Quarters of Fiscal 2020 (June 1, 2020 to February 28, 2021)
Information regarding Net Sales and Income (Loss) by Reporting Segment(Millions of yen)Transportation
Systems

Industrial
Systems

Information
Equipment
Systems

Other(Note 1)

Total

Adjustment
Amount(Note 2)

AmountRecorded on
Consolidated
Statementsof Income(Note 3)

15,8307,423851

3

24,108—

24,108

480

—

260

309(309)—15,878

7,423

851

263

24,417(309)

24,1081,449

435

244(34)

2,094(2,060)

33

Reporting Segment

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

3.

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 2,060 million yen. This is comprised of an elimination ofinter-segment sales and transfer amount of 1 million yen and corporate expenditure (a loss of 2,062 million yen) thatis not allocated to each reporting segment. Corporate expenditure is primarily comprised of selling, general andadministrative expenses, as well as research and development costs that are not allocated to each reporting segment.
Segment profit (loss) has been adjusted with operating income recorded under the quarterly consolidated statementsof income.

Summary of Consolidated Business Results for the First Three Quarters of Fiscal 2020
Toyo Denki Seizo K.K. (6505)

3.

Other(1)

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

Business segment

First Three Quarters of Fiscal 2019
(June 1, 2019 to February 29, 2020)
Amount(Millions of yen)First Three Quarters of Fiscal 2020
(June 1, 2020 to February 28, 2021)

Share
(%)

Amount(Millions of yen)

Share
(%)

Transportation Systems

17,54061.8

15,72968.4

Industrial Systems

9,740

34.3

6,933

30.2

Information Equipment Systems

1,115

3.9

327

1.4

Other————

Total

28,397100.0

22,991100.0(Notes)1.
2.

Amounts are based on sales prices.
Amounts are exclusive of consumption and other taxes.

(b) Status of Orders Received

Business segment

First Three Quarters of Fiscal 2019
(June 1, 2019 to February 29, 2020)
Orders Received(Millions of yen)First Three Quarters of Fiscal 2020
(June 1, 2020 to February 28, 2021)

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

Balance(Millions of yen)Transportation Systems

20,53325,522

14,61922,932

Industrial Systems

8,274

5,790

7,101

5,036

Information Equipment Systems

1,355

716

424

112

Other

4—3—

Total

30,16732,02922,14928,082(Notes)1.
2.

Amounts are based on sales prices.
Amounts are exclusive of consumption and other taxes.

(c) Sales Status

Business segment

First Three Quarters of Fiscal 2019
(June 1, 2019 to February 29, 2020)
Amount(Millions of yen)First Three Quarters of Fiscal 2020
(June 1, 2020 to February 28, 2021)

Share(%)

Amount(Millions of yen)

Share
(%)

Transportation Systems

17,61061.5

15,83065.7

Industrial Systems

9,667

33.8

7,423

30.8

Information Equipment Systems

1,339

4.7

851

3.5

Other

40.0

30.0

Total

28,621

100.0

24,108100.0(Notes)1.
2.

Amounts are based on sales prices.
Amounts are exclusive of consumption and other taxes.