January 13, 2016

Summary of Consolidated Business Results for the First Half of Fiscal 2015
For the fiscal year ending May 31, 2016
Toyo Denki Seizo K.K.
Stock Code: 6505
Representative:
Inquiries:

Stock Exchange: 1st Section of the Tokyo Stock Exchange
URL https://www.toyodenki.co.jp
Kenzo Terashima, President
Akira Watanabe, Operating Officer and General Manager, Management Planning
Division
TEL +81-3-5202-8122
Scheduled date of submission of quarterly financial report:
January 14, 2016
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 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 2015
(June 1, 2015 to November 30, 2015)(1) Consolidated Operating Results(In millions of yen, except where noted; percentage figures show year-on-year increase or decrease.)

Net Sales
1H Fiscal 2015
1H Fiscal 2014

18,74919,065(Note) Comprehensive income:(1.7)%
20.5%

Operating Income
611
584

Net Income
Attributable to
Owners of the Parent
473(8.2)%
515
790.7%

Ordinary Income

4.7%
174.0%

709
873(18.8)%
223.4%

1H Fiscal 2015: 206 million yen [(92.7)%]
1H Fiscal 2014: 2,841 million yen [288.7%]

Net Income
per Share (Yen)

Diluted Net Income
per Share (Yen)

9.82
10.69

－
－

1H Fiscal 2015
1H Fiscal 2014

(2) Consolidated Financial Position(In millions of yen, except where noted)

Total Assets
As of November 30, 2015
As of May 31, 2015

54,29253,041Net Assets
24,80924,895

Shareholders’ Equity
Ratio (%)
45.7
46.9

(Reference) Shareholders’ equity: As of November 30, 2015: 24,809 million yen
As of May 31, 2015: 24,895 million yen

2. Dividend Information
Annual Dividend (Yen)Interim
3Q
Fiscal Year-End
0.00
－
6.00
0.00

1Q
Fiscal 2014－
Fiscal 2015－
Fiscal 2015－
(Forecast)(Note) Revisions to the most recently announced dividend forecasts: No

6.00

Total
6.00
6.00

3. Consolidated Performance Forecast for Fiscal 2015 (June 1, 2015 to May 31, 2016)(In millions of yen, except where noted; percentage figures show year-on-year increase or decrease.)

Net Sales

Operating Income

Ordinary Income

Full year
44,000 11.1%
2,100
31.6%
2,200
7.0%
(Note) Revisions to the most recently announced performance forecast: No

Net Income
Attributable to
Owners of the
Parent1,400
26.6%

Net Income
per Share
(Yen)
29.05

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: 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, 2015: 48,675,000 shares
May 31, 2015: 48,675,000 shares(b) Number of shares of treasury stock as of the end of the period:
November 30, 2015: 491,381 shares
May 31, 2015: 484,737 shares(c) Average number of shares for the period (fiscal year-to-date):
1H Fiscal 2015: 48,187,423 shares
1H Fiscal 2014: 48,197,225 shares
Statements Regarding the Implementation Status of Quarterly Review ProceduresThis 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, quarterly review proceduresfor the quarterly financial statements pursuant to the aforementioned Act were not yet completed.
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 Business Results ..................................................................................................................... 2(2) Explanation of Financial Position ................................................................................................................... 3(3) Explanation of Consolidated Performance Forecast and Other Forward-looking Information ...................... 3
2.
Items regarding Summary Information (Notes) .............................................................................................. 4(1) Transfer of Major Subsidiaries during the Period ........................................................................................... 4(2) Application of Special Accounting Practices for the Preparation of
Quarterly Consolidated Financial Statements ................................................................................................. 4(3) Changes in Accounting Principles, Changes in Accounting Estimates, and Retrospective Restatements...... 4
3.
Consolidated Financial Statements ................................................................................................................. 5(1) Consolidated Balance Sheets .......................................................................................................................... 5(2) Consolidated Statements of Income and Comprehensive Income .................................................................. 7(3) Consolidated Statements of Cash Flows ......................................................................................................... 9(4) Notes to Quarterly Consolidated Financial Statements................................................................................. 10(Notes on Going Concern Assumptions) ................................................................................................. 10(Notes on Significant Fluctuations in Shareholders’ Equity) .................................................................. 10(Segment Information) ............................................................................................................................ 10
4.
Supporting Materials for the Financial Results ............................................................................................. 12(1) The Status of Production, Orders, and Sales.................................................................................................. 12-1-

1. Qualitative Information regarding Quarterly Financial Results(1) Explanation of Business Results
During the first half (June 1, 2015 to November 30, 2015) of fiscal 2015, the fiscal year ending May 31, 2016, theeconomy in Japan maintained a mild recovery trend in general despite some weak activities. Meanwhile, withregard to overseas, a recovery trend of the economy in the United States continued, such as improvement in theemployment environment. In China and the emerging countries, although their economic growth is slowing down,
investments in railway infrastructure remained at a high level in these areas.
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 “Next 100: Beyond 100 years,”
the medium-term management plan which will be completed in the fiscal year ending May 31, 2017.
The Toyo Denki Group’s performance in the first half of fiscal 2015, the second fiscal year of the plan, was asfollows.
Orders received decreased 2.4% compared with the corresponding period of the previous fiscal year to 19,133
million yen. This overall result reflected a slight decrease in the Industrial Systems segment.
Net sales decreased 1.7% year on year to 18,749 million yen, reflecting a slight decrease in the Transportation
Systems segment despite a slight increase in the Industrial Systems segment.
From a profit perspective, operating income rose 4.7% compared with the corresponding period of the previous
fiscal year, and recorded 611 million yen, mainly due to increased profit in the Industrial Systems segment.
However, primarily due to the posting of loss on foreign currency exchange, ordinary income decreased 18.8%,
recording 709 million yen, and net income attributable to owners of the parent decreased 8.2% to record 473
million yen.
Information by business segment is presented as follows.
Transportation Systems
Orders received increased 2.4% compared with the corresponding period of the previous fiscal year to 12,862
million yen, led by an upturn outside Japan.
Net sales in this segment totaled 12,735 million yen, a 2.3% decrease from the corresponding period of theprevious year, due to a decrease outside Japan, despite a slight increase in Japan.
Segment profit decreased 1.2% compared with the corresponding period of the previous fiscal year to 1,335
million yen.
Industrial Systems
While orders received for testing equipment for automotive development increased, those for social infrastructure
declined. In overall terms, orders received decreased 9.2% compared with the corresponding period of the previous
fiscal year to 5,866 million yen.
Net sales increased 0.3% year on year to 5,683 million yen as sales of testing equipment for automotive
development increased, despite a decrease in those for social infrastructure.
Segment profit totaled 506 million yen, a 22.0% increase compared with the corresponding period of theprevious fiscal year.
Information Equipment Systems
Orders received in this segment decreased 31.9% to 401 million yen, primarily due to significant decreases both inrailway station operating equipment and remote monitoring systems.
Net sales in this segment decreased 10.0% year on year to 328 million yen due to a decrease in sales of remotemonitoring systems, despite an increase in sales of railway station operating equipment.
Segment profit was a 21 million yen loss, a decrease of 40 million yen compared with the corresponding periodof the previous fiscal year, primarily due to an increase in development expenses.
Note: Net sales data by business segment represents sales to third parties and is exclusive of inter-segment sales andtransfers.

-2-(2) Explanation of Financial Position
1) Status of Assets, Liabilities and Net Assets(Assets)
Total assets as of November 30, 2015 stood at 54,292 million yen, an increase of 1,251 million yen comparedwith the end of the previous fiscal year. Despite a decrease in cash and cash equivalents of 1,159 million yen, theincrease in total assets was largely attributable to increases in trade notes and accounts receivable of 1.2 billion yen,
and inventories of 1,094 million yen, respectively.
(Liabilities)
Total liabilities as of November 30, 2015 amounted to 29,482 million yen, an increase of 1,336 million yen
compared with the previous fiscal year end. Despite decreases in income taxes payable of 321 million yen, andconsumption and other taxes payable of 201 million yen, the increase in total liabilities was largely attributable toincreases in payables of 664 million yen, and borrowings of 1,348 million yen.
(Net assets)
Net assets as of November 30, 2015 stood at 24,809 million yen, 85 million yen less than the balance as of theprevious fiscal year end. Despite an increase in retained earnings of 184 million yen, the decrease in net assets waslargely attributable to a decrease in unrealized holding gain on available-for-sale securities of 319 million yen.
2) Status of Cash Flows
Cash and cash equivalents as of November 30, 2015 stood at 2,411 million yen, a decrease of 1,159 million yen
compared with the end of the previous fiscal year.
(Cash flows from operating activities)
Net cash used in operating activities during the first half of fiscal 2015 amounted to 1,707 million yen. Despite
cash inflows such as income before income taxes of 707 million yen, depreciation and amortization of 398 million
yen, and an increase in trade notes and accounts payable of 654 million yen, this was largely attributable to cash
outflows such as an increase in trade notes and accounts receivable of 1,208 million yen, an increase in inventories
of 1,080 million yen, and payments for corporate and other taxes of 709 million yen.
(Cash flows from investing activities)
Net cash used in investing activities during the first half of fiscal 2015 amounted to 514 million yen. This waslargely attributable to purchases of property, plant and equipment of 170 million yen.
(Cash flows from financing activities)
Net cash provided by financing activities during the first half of fiscal 2015 amounted to 1,062 million yen. This
was largely attributable to an increase in short-term loans payable of 1,752 million yen, and repayment of long-term
debt of 399 million yen.
(3) Explanation of Consolidated Performance Forecast and Other Forward-looking Information
We have made no revision to the “Consolidated Performance Forecast for Fiscal 2015” announced on July 10,
2015.

-3-

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
Changes in Accounting Policies“Accounting Standard for Business Combinations (ASBJ Statement No. 21 of September 13, 2013) and“Accounting Standard for Consolidated Financial Statements (ASBJ Statement No. 22 of September 13, 2013), and“Accounting Standard for Business Divestitures (ASBJ Statement No. 7 of September 13, 2013) and others havebeen applied from the first quarter of fiscal 2015. Along with this application, presentation method regarding net
income and others has been revised, and minority interests has been revised to non-controlling interests as well. To
reflect these changes in presentation, consolidated financial statements for the first half of fiscal 2014 and for thefull year of fiscal 2014 ended May 31, 2015 have been reclassified.

-4-3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of May 31, 2015

End of the First Half of Fiscal 2015
(November 30, 2015)

AssetsCurrent assets
Cash and cash equivalents

3,570

2,411

Trade notes and accounts receivable

14,83816,039Products and finished goods

1,283

1,475

Work in process

2,962

3,501

Raw materials and stored goods

2,149

2,512

828

1,138

Other
Allowance for doubtful accounts
Total current assets

(40)

(2)

25,59327,076

Fixed assets
Property, plant and equipment

7,058

7,081

Accumulated depreciation(4,320)(4,431)

Buildings and structures, net

2,737

2,650

Buildings and structures

Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
LandConstruction in progress
Other
Accumulated depreciation

6,792

6,892

(5,930)(6,066)

862

826

289

289

227

267

3,272

3,315

(2,786)(2,836)

486

478

4,603

4,512

Software

204

202

Other

144

284

Total intangible assets

348

486

Investment securities

20,326

19,868

Other

2,180

2,361

Other, net
Total property, plant and equipment
Intangible assets

Investments and other assets

Allowance for doubtful accounts

(12)

(12)

Total investments and other assets

22,49522,21727,447

27,21653,04154,292

Total fixed assets
Total assets-5-

(Millions of yen)
As of May 31, 2015

End of the First Half of Fiscal 2015
(November 30, 2015)

Trade notes and accounts payable

5,116

3,983

Electronically recorded obligations - operating

3,022

4,819

Short-term debt

1,783

3,312

Income taxes payable

652

331

Consumption and other taxes payable

249

48

Accrued expenses

992

1,132

Advances received

288

119

Deposits received

230

212

Reserve for directors’ bonuses

41

21

Reserve for employees’ bonuses

927

960

Reserve for order losses

301

273

Liabilities
Current liabilities

Allowance for environmental development

65

64

Other

307

328

13,97915,609

7,640

7,459

141

156

Net defined benefit liability

3,725

3,737

Deferred tax liabilities

2,618

2,482

40

37

14,166

13,87328,14529,482

Capital stock

4,998

4,998

Capital surplus

3,177

3,177

Retained earnings

8,698

8,882

Treasury stock

(171)

(174)

Total shareholders’ equity

16,702

16,883

8,317

7,997

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

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

Accumulated other comprehensive income
Unrealized holding gain on available-for-sale securities
Foreign currency translation adjustments

259

288

Remeasurements of defined benefit plans

(383)

(359)

Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

-6-

8,193

7,926

24,89524,80953,04154,292

(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statements of Income for the First Half of Fiscal 2015)(Millions of yen)
1H FY2014
1H FY2015(June 1, 2014 to November 30, 2014) (June 1, 2015 to November 30, 2015)
Net sales

19,06518,749

Cost of sales

14,692

14,388Gross profit

4,373

4,361

Selling, general and administrative expenses

3,788

3,749

584

611

Operating income
Non-operating income

10Dividend income
Equity in profit of unconsolidated subsidiaries andaffiliates
Life insurance dividend income

141

169

-

28

6

39

Foreign exchange gains

250-

Miscellaneous income

1219

Total non-operating income

413

255

71

61

29

-

Interest income

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

1

0

-

81

Miscellaneous loss

21

14

Total non-operating expenses

124

157

873

709

Gain on sales of fixed assets

12-

Total extraordinary income

12

-

-

2

Ordinary income
Extraordinary income

Extraordinary loss
Loss on sales of investment securities
Total extraordinary loss-

2

Income before income taxes

886

707

Current

511

285

Income taxes:

Deferred

(140)

(51)

Total income taxes

371

234

Net income

515

473

Net income attributable to owners of the parent

515

473

-7-

(Consolidated Statements of Comprehensive Income for the First Half of Fiscal 2015)(Millions of yen)
1H FY2014
1H FY2015(June 1, 2014 to November 30, 2014) (June 1, 2015 to November 30, 2015)
Net income
Other comprehensive income
Unrealized holding gain (loss) on available-for-salesecurities
Deferred gains or losses on hedges

515

473

2,269

(319)

26

-

Foreign currency translation adjustments

(12)

3

Remeasurements of defined benefit plans
Share of other comprehensive income of affiliates towhich the equity method is applied
Total other comprehensive income

84

23

(41)

26

2,326

(267)

2,841

206

2,841

206

-

-

Comprehensive income
Comprehensive income attributable to:
Owners of the parent
Non-controlling interests-8-(3) Consolidated Statements of Cash Flows(Millions of yen)
1H FY2014
1H FY2015(June 1, 2014 to November 30, 2014) (June 1, 2015 to November 30, 2015)
Cash flows from operating activities
Income before income taxes

886

707

Depreciation and amortization(Reversal of) provision for allowance for doubtful
accounts
Provision for (reversal of) accrued employees’ bonuses

417

398

6

(37)

(116)

32

173

11

179

(27)

(143)

(169)

Increase in net defined benefit liability(Reversal of) reserve for losses on orderacknowledgements
Interest and dividends income

71

61(1,577)(1,208)Inventories(258)(1,080)Trade notes and accounts payable

(111)

654

Advances received

186

(169)

Accrued expenses

661

144

-

2

Interest expenses
Trade notes and accounts receivable

Loss (gain) on sales of investment securities
Increase (decrease) in allowance for environmental
development
Other

-

(0)

(52)

(421)

Subtotal

324(1,102)

Interest and dividends income received

159

169

Interest expenses paid

(68)

(64)

Payments for corporate and other taxes

(419)

(709)

Net cash used in operating activities(4)(1,707)

(252)

(170)

Purchases of investment securities

(6)

(6)

Proceeds from sales of investment securities

-

7

Other

(35)

(345)

Net cash used in investing activities

(294)

(514)

Cash flows from investing activities
Purchases of property, plant and equipment

Cash flows from financing activities

122

1,752

Increase in long-term debt

1,500

-

Repayment of long-term debt

(544)

(399)

Purchase of treasury stock

(2)

(2)

(286)

(287)

(0)

(0)

788

1,062

23

(0)

Increase (decrease) in short-term loans payable

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

512(1,159)Cash and cash equivalents at the beginning of the period

2,997

3,570

Cash and cash equivalents at the end of the period

3,510

2,411

-9-

(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)
First Half of Fiscal 2014 (June 1, 2014 to November 30, 2014)
Information regarding Net Sales and Income (Loss) by Reporting Segment
Reporting Segment(Millions of yen)AmountRecorded on
Adjustment
Quarterly
Amount2
Consolidated
Statementsof Income3

Transportation
Systems

Industrial
Systems

Information
Equipment
Systems

Other1

Total

13,031

5,666

364

2

19,065—

19,065

4

0

—

289

294

(294)

—

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

Total
13,0355,666
364
292 19,359(294)
19,065
Segment profit
1,351
414
18
30
1,815
(1,231)
584
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 1,231 million yen. This is comprised of an elimination ofinter-segment sales and transfer amount of 1 million yen and corporate expenditure (a loss of 1,229 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 statements
of income.

- 10 -

First Half of Fiscal 2015 (June 1, 2015 to November 30, 2015)
Information regarding Net Sales and Income (Loss) by Reporting Segment
Reporting Segment(Millions of yen)AmountRecorded on
Adjustment
Quarterly
Amount2
Consolidated
Statementsof Income3

Transportation
Systems

Industrial
Systems

Information
Equipment
Systems

Other1

Total

12,735

5,683

328

2

18,749—18,749

2

2

—

288

293

(293)

—

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

Total
12,7375,686
328
291 19,043(293)
18,749Segment profit (loss)
1,335
506
(21)
8
1,828
(1,216)
611
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 1,216 million yen. This is comprised of anelimination of inter-segment sales and transfer amount of 0 million yen and corporate expenditure (a loss of
1,216 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 income recorded under the quarterly consolidated
statements of income.

- 11 -

4. Supporting Materials for the Financial Results(1) The Status of Production, Orders, and Sales(a) Production Status
1H FY2014(June 1, 2014 to November 30, 2014)
Business segment
Millions of yen
Share (%)
Transportation Systems
13,36870.8Industrial Systems
5,250
27.8
Information Equipment
261
1.4
Systems
Other
―
―
Total
18,880100.0
Notes:
1. Amounts are based on sales prices.
2. Amounts are exclusive of consumption and other taxes.

1H FY2015(June 1, 2015 to November 30, 2015)
Millions of yen
Share (%)
13,151
69.2
5,565
29.3
294

1.5

—
19,010—100.0(b) Status of Orders Received
Business segment

1H FY2014(June 1, 2014 to November 30, 2014)
Orders Received
Balance(Millions of yen)
(Millions of yen)
12,55725,174
6,458
5,720

Transportation Systems
Industrial Systems
Information Equipment
589
465
Systems
Other
2
—
Total
19,60831,360Notes:
1. Amounts are based on sales prices.
2. Amounts are exclusive of consumption and other taxes.

1H FY2015(June 1, 2015 to November 30, 2015)
Orders Received
Balance(Millions of yen)
(Millions of yen)
12,862
24,602
5,866
6,817
401

171

2
19,133―31,590(c) Sales Status
Business segment

1H FY2014(June 1, 2014 to November 30, 2014)
Millions of yen
Share (%)
13,031
68.4
5,666
29.7

Transportation Systems
Industrial Systems
Information Equipment
364
1.9
Systems
Other
2
0.0
Total
19,065100.0
Notes:
1. Amounts are based on sales prices.
2. Amounts are exclusive of consumption and other taxes.

- 12 -

1H FY2015(June 1, 2015 to November 30, 2015)
Millions of yen
Share (%)
12,735
67.9
5,683
30.3
328

1.8

2
18,7490.0
100.0