October 13, 2017

Summary of Consolidated Business Results for the First Quarter of Fiscal 2017
For the fiscal year ending May 31, 2018
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
Takatoshi Ohtsuka, General Manager, Management Planning Division
TEL +81-3-5202-8122
Scheduled date of submission of quarterly financial report:
October 13, 2017
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 Quarter of Fiscal 2017
(June 1, 2017 to August 31, 2017)(1) Consolidated Operating Results(In millions of yen, except where noted; percentage figures show year-on-year increase or decrease.)

Net Sales

Operating Income－(701)－(659)(Note) Comprehensive income: 1Q Fiscal 2017: (286) million yen [－%]1Q Fiscal 2016: (1,641) million yen [－%]
1Q Fiscal 2017
1Q Fiscal 2016

6,958
7,767

(10.4)%(12.1)%(826)(533)

Net Incomeper Share (Yen)

Diluted Net Incomeper Share (Yen)(42.44)(47.25)－－

1Q Fiscal 2017
1Q Fiscal 2016

Net Income
Attributable to
Owners of the Parent－(400)－－(452)－

Ordinary Income* The Company conducted a share consolidation of its common shares at the ratio of 5 shares to 1 share effective
December 1, 2016. Net income per share is calculated on the assumption that the share consolidation wasconducted at the beginning of the previous fiscal year.

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

Total Assets
As of August 31, 2017
As of May 31, 2017

53,42054,927(Reference) Shareholders’ equity:

Net Assets
24,03324,603

Shareholders’ Equity
Ratio (%)
45.0
44.8

As of August 31, 2017: 24,033 million yen
As of May 31, 2017: 24,603 million yen

2. Dividend Information
1Q

Annual Dividend (Yen)Interim
3Q
Fiscal Year-End
0.00
－
30.00

Fiscal 2016－
Fiscal 2017－
Fiscal 20170.00－
(Forecast)(Note) Revisions to the most recently announced dividend forecasts: No30.00

Total
30.00
30.00

3. 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 Sales

Operating Income

Ordinary Income

First half
19,500
7.5%
200
11.6%
300 (10.4)%
Full year
43,000
5.7%
1,700
8.2%
1,900
14.2%
(Note) Revisions to the most recently announced performance forecast: NoNet Income
Attributable toOwners of theParent300
25.5%
1,500
27.7%

Net Income
per Share(Yen)
31.65
158.24

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
Statement: NoNotes on Application of Special Accounting Practices for the Preparation of Quarterly Consolidated Financial
Statement(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: NoNotes on changes in accounting policies(4) Shares outstanding (common stock)(a) Number of shares outstanding as of the end of the period (including treasury stock):
August 31, 2017: 9,735,000 shares
May 31, 2017: 9,735,000 shares(b) Number of shares of treasury stock as of the end of the period:
August 31, 2017: 291,081 shares
May 31, 2017: 290,569 shares(c) Average number of shares for the period (fiscal year-to-date):
1Q Fiscal 2017: 9,444,230 shares
1Q Fiscal 2016: 9,580,329 shares* The Company conducted a share consolidation of its common shares at the ratio of 5 shares to 1 share effective
December 1, 2016. Number of shares outstanding (common stock) is calculated on the assumption that the shareconsolidation 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 readersthat 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 onpage 2 for details relating to operating results forecasts.

1. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
End of the First Quarter of Fiscal
2017 (August 31, 2017)

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

2,091

1,362

Trade notes and accounts receivable

15,83011,859

Electronically recorded monetary claims - operating

531

883

Products and finished goods

870

1,492

Work in process

3,373

4,140

Raw materials and stored goods

2,234

2,845

Advances

2646

Deferred tax assets

576

753

Other accounts receivable

165

151

Other

99

359

(1)

(1)

25,79923,892

7,415

7,454

Accumulated depreciation(4,710)(4,764)

Buildings and structures, net

2,704

2,690

Allowance for doubtful accounts
Total current assetsFixed assets
Property, plant and equipment
Buildings and structures

7,030

7,246

(6,239)(6,310)

791

936

Land

1,345

1,345

Construction in progress

2,336

2,471

Machinery and equipment
Accumulated depreciation
Machinery and equipment, net

Other
Accumulated depreciation

3,363

3,503

(2,920)(2,973)

443

530

7,622

7,974

Software163

957

Software in progress906

9

Other, net
Total property, plant and equipment
Intangible assets

Other
Total intangible assets

1111

1,081

978

18,154

18,370Investments and other assets
Investment securities
Deferred tax assets
Other66

51

2,215

2,165

Allowance for doubtful accounts

(12)

(12)

Total investments and other assets

20,424

20,57529,12829,52854,92753,420Total fixed assets
Total assets-1-(Millions of yen)
End of the First Quarter of Fiscal
2017 (August 31, 2017)

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

3,346

3,472

Electronically recorded obligations - operating

5,489

5,240

Short-term debt

4,969

4,885

Income taxes payable

437

55

Consumption and other taxes payable

134

51

Accrued expenses

1,069956

Advances received

119

253

Deposits received

235

387

Reserve for directors’ bonuses

33

11

Reserve for employees’ bonuses

952

516

Reserve for order losses

365

524

Other
Total current liabilities

389

277

17,543

16,631

6,786

6,740

Long-term liabilities
Long-term debt

157

38

Net defined benefit liability

3,913

3,947

Deferred tax liabilities

1,792

1,871

131

160

12,78012,75630,32429,387

4,998

4,998

Capital surplus

3,177

3,177

Retained earnings

10,1709,485

Long-term payables

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

Treasury stock(477)(478)

Total shareholders’ equity

17,86817,183

6,879

7,016

156

121

Accumulated other comprehensive income
Unrealized holding gain on available-for-sale securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans

(300)

(288)

Total accumulated other comprehensive income

6,735

6,850

24,60324,03354,92753,420Total net assets
Total liabilities and net assets-2-(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statements of Income for the First Quarter of Fiscal 2017)(Millions of yen)
1Q FY2016(June 1, 2016 to August 31, 2016)

1Q FY2017(June 1, 2017 to August 31, 2017)

Net sales

7,767

6,958

Cost of sales

6,368

5,827

Gross profit

1,398

1,131

Selling, general and administrative expenses

1,932

1,957

Operating loss

(533)

(826)

Non-operating income

00

Dividend income
Equity in profit of unconsolidated subsidiaries
and affiliates
Foreign exchange gains

105

108

5－－23

Gain on reversal of environmental expenses－40

Miscellaneous income

711118184

Interest expense
Equity in loss of unconsolidated subsidiaries
and affiliates
Loss on disposal of fixed assets

2735－

1500

Loss on foreign currency exchange

214－

Commission fee－

5

Miscellaneous loss

14244

60(659)(701)

Gain on sales of investment securities

－

168

Other

－

2

Total extraordinary income

－

170

23－

Interest income

Total non-operating income
Non-operating expenses

Total non-operating expenses
Ordinary loss
Extraordinary income

Extraordinary loss
Loss on sales of fixed assets

23－

(683)

(530)

Current

27

21

Total extraordinary losses
Loss before income taxes
Income taxes:Deferred(257)(151)

Total income taxes

(230)

(130)

Net loss

(452)

(400)

Net loss attributable to owners of the parent

(452)

(400)

-3-(Consolidated Statements of Comprehensive Income)(Millions of yen)
1Q FY2016(June 1, 2016 to August 31, 2016)

1Q FY2017(June 1, 2017 to August 31, 2017)

(452)

(400)

(1,143)136

Net loss
Other comprehensive income
Unrealized holding gain (loss) on available-forsale securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income ofaffiliates to which the equity method is applied
Total other comprehensive income
Comprehensive income431212(63)(38)(1,189)114(1,641)(286)(1,641)(286)－－

Comprehensive income attributable to:
Owners of the parent
Non-controlling interests-4-(3) Segment Information
The First Quarter of Fiscal 2016 (June 1, 2016 to August 31, 2016)
Information regarding Net Sales and Income (Loss) by Reporting Segment
Reporting Segment(Millions of yen)AmountRecorded on
Adjustment
Quarterly
Amount2
Consolidated
Statements ofIncome3

Transportation
SystemsIndustrialSystems

Information
Equipment
Systems

Other1

Total

Sales to third parties

5,711

1,897

157

1

7,767

－

7,767

Inter-segment sales
and transfers

10－161

163

(163)

－

5,713

1,897

157

163

7,930

(163)

7,767

Net sales

Total

308(148)
2
11173
(707)
(533)
Segment profit (loss)(Notes)1. The “Other” segment includes operations not included in reporting segments such as the dispatch oftemporary staff.
2. The segment profit (loss) adjustment amount is a loss of 707 million yen. This is comprised of anelimination of inter-segment sales and transfer amount at a loss of 0 million yen and corporate expenditure (aloss of 706 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
statements of income.

-5-

The First Quarter of Fiscal 2017 (June 1, 2017 to August 31, 2017)
Information regarding Net Sales and Income (Loss) by Reporting Segment
Reporting Segment(Millions of yen)AmountRecorded on
Adjustment
Quarterly
Amount2
Consolidated
Statements ofIncome3

Transportation
Systems

Industrial
Systems

Information
Equipment
Systems

Other1

Total

Sales to third parties

4,929

1,805

222

1

6,958

－

6,958

Inter-segment sales
and transfers

－0－

163

163

(163)

－

Total

4,929

1,805

222

164

7,121(163)6,958

Net sales

160
(257)
(35)
4(127)(698)(826)
Segment profit (loss)(Notes)1. The “Other” segment includes operations not included in reporting segments such as the dispatch oftemporary staff.
2. The segment profit (loss) adjustment amount is a loss of 698 million yen. This is comprised of anelimination of inter-segment sales and transfer amount of 2 million yen and corporate expenditure (a loss of700 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
statements of income.

-6-2. Supporting Materials for the Financial Results(1) The Status of Production, Orders, and Sales(a) Production Status
Business segment

1Q FY2016(June 1, 2016 to August 31, 2016)
Millions of yen
Share (%)

Transportation Systems
5,932
Industrial Systems
2,009
Information Equipment
102
Systems
Other－Total
8,044(Notes)
1. Amounts are based on sales prices.
2. Amounts are exclusive of consumption and other taxes.

1Q FY2017(June 1, 2017 to August 31, 2017)
Millions of yen
Share (%)

73.7
25.0

5,446
2,077

72.0
27.5

1.3

350.5

－
100.0－
7,560－
100.0(b) Status of Orders Received
Business segment

1Q FY2016(June 1, 2016 to August 31, 2016)
Orders Received
Balance(Millions of yen)
(Millions of yen)Transportation Systems
6,975
25,442
Industrial Systems
2,802
6,934
Information Equipment
1,067
1,423
Systems
Other1－
Total
10,84833,800(Notes)
1. Amounts are based on sales prices.
2. Amounts are exclusive of consumption and other taxes.

1Q FY2017(June 1, 2017 to August 31, 2017)
Orders Received
Balance(Millions of yen)
(Millions of yen)

6,992
2,553

27,849
8,187

936

1,627

110,484－
37,664(c) Sales Status
Business segment

1Q FY2016(June 1, 2016 to August 31, 2016)
Millions of yen
Share (%)

Transportation Systems
5,711
Industrial Systems
1,897
Information Equipment
157
Systems
Other1
Total
7,767(Notes)
1. Amounts are based on sales prices.
2. Amounts are exclusive of consumption and other taxes.

-7-

1Q FY2017(June 1, 2017 to August 31, 2017)
Millions of yen
Share (%)

73.5
24.4

4,929
1,805

70.8
25.9

2.0

222

3.2

0.0
100.0

1
6,958

0.0
100.0