Summary of Consolidated Business Results for the First Half of Fiscal 2019
January 14, 2020
Company Name:
Toyo Denki Seizo K.K.
Stock Exchange: 1st Section of the Tokyo Stock Exchange
Stock Code:6505
URL
https://www.toyodenki.co.jp
Representative:
Kenzo Terashima, President
Inquiries:
Takatoshi Ohtsuka, General Manager, Management Planning Division
TEL: +81-3-5202-8122
Scheduled date of submission of quarterly financial report: January 14, 2020
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 and analysts)(Note: Amounts less than one million yen in financial statements and supplementary data are rounded down.)

1.

Consolidated Business Results for the First Half of Fiscal 2019 (June 1, 2019 to November 30, 2019)(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%

19,392
19,635

(1.2)
5.3

302
(124)

——380(21)

——470
146

221.4
(42.8)

1H Fiscal 2019
1H Fiscal 2018

(Note) Comprehensive income:

1H Fiscal 2019
1H Fiscal 2018

Net Income
per Share
1H Fiscal 2019
1H Fiscal 2018(2)

1,054 million yen [-%]
(640) million yen [-%]

Diluted Net Income
per Share
Yen

Yen

52.63
15.62

——

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

Shareholders’ Equity
Ratio (%)

Net Assets

Millions of yen

Millions of yen%

58,09858,001

25,58924,80444.0
42.8

As of November 30, 2019
As of May 31, 20192.

Net Income Attributable toOwners of the Parent

Ordinary Income

As of November 30, 2019
As of May 31, 201925,589 million yen
24,804 million yen

Dividend Information
Annual Dividend (Yen)
1Q

Fiscal 2018
Fiscal 2019

Interim

3Q

Fiscal Year-End

Yen

Yen

Yen

Yen

Yen——

0.00
0.00

—

30.00

30.00

—

30.00

30.00

Fiscal 2019 (Forecast)(Note) Revisions to the most recently announced dividend forecasts: No

3.

Total

Consolidated Performance Forecast for Fiscal 2019 (June 1, 2019 to May 31, 2020)(Percentage figures show year-on-year increase or decrease.)
Net Sales
Millions of yen

Operating Income%Millions of yen%Ordinary Income
Millions of yen

Net Income
Attributable to Ownersof the Parent

Net Income per
Share (Yen)%

Millions of yen%

Yen

Full year
42,0002.0
900
61.4
1,100 121.8(Note) Revisions to the most recently announced performance forecast: No900

30.4

100.65

* 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 : 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 endof the period (including treasury stock):

1H Fiscal 2019

9,735,000 sharesFiscal 2018

9,735,000 shares(b)

Number of shares of treasury stock as of theend of the period:

1H Fiscal 2019793,283 sharesFiscal 2018792,966 shares(c)Average number of shares for the period(fiscal year-to-date):

1H Fiscal 2019

8,941,949 shares

1H Fiscal 2018

9,371,547 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 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 readers that due to a variety of factors actualresults may differ materially from forecasts. Please refer to “Explanation of Consolidated Performance Forecast and Other Forwardlooking Information” in the Accompanying Materials on page 3 for details relating to forecasts of operating results (available inJapanese 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 Half of Fiscal 2019
Toyo Denki Seizo K.K. (6505)

2.

Consolidated Financial Statements(1)

Consolidated Balance Sheets(Millions of yen)
Fiscal 2018
(As of May 31, 2019)

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 receivable
OtherAllowance 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
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

1H Fiscal 2019
(As of November 30, 2019)2,24014,192
1,443
991
3,504
3,074
47
461
64(1)
26,0191,577
15,359
1,026
845
3,825
2,855
25
49
150
(0)
25,717

12,210(5,119)7,090
8,174(6,732)
1,441
1,301
31
4,410
(3,592)818
10,683

12,272(5,316)
6,956
8,199(6,921)
1,277
1,301
50
4,515
(3,752)763
10,349

677
14
692

568
14
583

17,856
164
2,598
(12)
20,60631,98258,001

18,419
136
2,904
(12)
21,44832,38158,098

Summary of Consolidated Business Results for the First Half of Fiscal 2019
Toyo Denki Seizo K.K. (6505)(Millions of yen)
Fiscal 2018
(As of May 31, 2019)
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
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

1H Fiscal 2019
(As of November 30, 2019)

2,670
5,944
2,462
678
320
579
59
216
38
819
570
402
14,763

2,788
5,525
2,810
708
2686670237
23
828
483
229
14,041

12,961
20
1,554
3,893
4
18,43333,197

12,637
20
1,838
3,967
3
18,46732,508

4,998
3,177
10,797(1,280)17,693

4,998
3,177
10,999(1,280)17,894

7,176
126
(192)
7,110
24,80458,001

7,779
83
(168)
7,694
25,58958,098

Summary of Consolidated Business Results for the First Half of Fiscal 2019
Toyo Denki Seizo K.K. (6505)(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income for the First Half
(Millions of yen)
1H Fiscal 2018
1H Fiscal 2019
(June 1, 2018 to(June 1, 2019 toNovember 30, 2018)
November 30, 2019)
Net sales
19,635
19,392
Cost of sales
16,030
15,485Gross profit
3,605
3,907
Selling, general and administrative expenses
3,729
3,605
Operating income (loss)
(124)
302
Non-operating income
Interest income
00
Dividend income
181
164
Foreign exchange gains
13—
Miscellaneous income
31
26
Total non-operating income
227192
Non-operating expenses
Interest expenses
72
46
Equity in loss of unconsolidated subsidiaries and affiliates
410
Loss on disposal of fixed assets
40
Foreign exchange losses—
31
Miscellaneous loss
44
24
Total non-operating expenses
125
114
Ordinary income (loss)(21)
380
Extraordinary income
Gain on sales of investment securities
347
412
Total extraordinary income
347
412
Extraordinary loss
Expenses for commemorative events of the 100th anniversary
20—
Total extraordinary losses
20—
Income before income taxes
305
793
Income taxes: Current
173
283
Income taxes: Deferred(14)
38
Total income taxes
158
322
Net income
146
470
Net income attributable to owners of the parent146
470

Summary of Consolidated Business Results for the First Half of Fiscal 2019
Toyo Denki Seizo K.K. (6505)
Consolidated Statements of Comprehensive Income for the First Half
(Millions of yen)
1H Fiscal 2018
1H Fiscal 2019
(June 1, 2018 to(June 1, 2019 toNovember 30, 2018)
November 30, 2019)
Net income
146
470
Other comprehensive income
Unrealized holding gains on available-for-sale securities
(758)
603
Foreign currency translation adjustments(9)(9)
Adjusted amounts of defined benefit plans
24
23
Share of other comprehensive income of affiliates to which
(44)
(33)
the equity method is applied
Total other comprehensive income
(787)
583
Comprehensive income
(640)
1,054
Comprehensive income attributable to:
Owners of the parent
(640)
1,054
Non-controlling interests——

Summary of Consolidated Business Results for the First Half of Fiscal 2019
Toyo Denki Seizo K.K. (6505)(3)

Consolidated Statements of Cash Flows
1H Fiscal 2018
(June 1, 2018 toNovember 30, 2018)

Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Decrease in allowance for doubtful accounts
Increase in reserve for employees’ bonuses
Increase (decrease) in net defined benefit liability
Decrease in reserve for order losses
Interest and dividend income
Interest expenses
Gain on sales of investment securities
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Decrease in trade notes and accounts payable
Increase (decrease) in advances received
Increase in accrued expenses
Decrease (increase) in consumption taxes refund receivable
Increase (decrease) in accrued consumption taxes
Other
SubtotalInterest and dividend income received
Interest expenses paid
Payments for corporate and other taxes
Cash flows from operating activities
Cash flows from investing activities
Purchases of property, plant and equipment
Purchases of intangible assets
Purchases of investment securities
Proceeds from sales of investment securities
Payments of loans receivable
Payments for investments in capital of subsidiaries
Other
Cash flows from investing activities
Cash flows from financing activities
Increase in short-term loans payable, net
Repayment of long-term debt
Purchases of treasury stock
Cash dividends paid
Other
Cash flows from financing activities
Effect of exchange rate change on cash and cash equivalents
Increase (decrease) in cash and cash equivalents
Balance of cash and cash equivalents at the beginning of theperiod
Balance of cash and cash equivalents at the end of the period(Millions of yen)
1H Fiscal 2019
(June 1, 2019 toNovember 30, 2019)

305
821
(0)
0
(6)
(168)
(182)
72(347)280(615)(1,708)
(114)
42
398
62(0)
(1,162)
182
(69)
(54)
(1,104)

793
717
(1)
8
74(81)(165)
46(412)(784)
22(261)11
38(30)
(512)
(86)
(625)
165
(52)
(238)
(749)

(1,409)
(41)
(7)
565
——188(704)

(363)
(8)
(7)
1,073
(26)
(338)
(13)
315

3,340
(101)
(799)
(470)
(0)
1,969
18178

268(239)
(0)
(267)
(0)
(239)
11(662)

1,555

2,240

1,734

1,577

Summary of Consolidated Business Results for the First Half of Fiscal 2019
Toyo Denki Seizo K.K. (6505)(4)

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 Half of Fiscal 2018 (June 1, 2018 to November 30, 2018)
Information regarding Net Sales and Income (Loss) by Reporting Segment(Millions of yen)Transportation
Systems

IndustrialSystems

Information
Equipment
Systems

Other(Note 1)

Total

Adjustment
Amount(Note 2)

AmountRecorded on
Quarterly
Consolidated
Statementsof Income(Note 3)

13,124

5,777

724

8

19,635—

19,635

180

—

295

314(314)—

13,143

5,778

724

304

19,950(314)19,635

1,058

123

124

16

1,322(1,446)(124)

Reporting Segment

Net sales
Sales to third parties
Inter-segment sales
and 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 segment profit adjustment amount is a loss of 1,446 million yen. This is comprised of an elimination of intersegment sales and transfer amount of a loss of 2 million yen and corporate expenditure (a loss of 1,443 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 loss recorded under the quarterly consolidated statements of income.

First Half of Fiscal 2019 (June 1, 2019 to November 30, 2019)
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
Quarterly
Consolidated
Statementsof Income(Note 3)

12,139

6,459

790

3

19,392—

19,39240—

272

277(277)—

12,144

6,460

790

275

19,670(277)

19,392

1,017

488

247

4

1,756

(1,454)302

Reporting Segment

Net sales
Sales to third parties
Inter-segment sales
and 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 segment profit adjustment amount is a loss of 1,454 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 1,454 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.

Summary of Consolidated Business Results for the First Half of Fiscal 2019
Toyo Denki Seizo K.K. (6505)

3.

Supporting Materials for the Financial Results(1)

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

Business segment

1H Fiscal 2018
(June 1, 2018 to November 30, 2018)
Amount(Millions of yen)

1H Fiscal 2019
(June 1, 2019 to November 30, 2019)

Share(%)

Amount(Millions of yen)

Share(%)

Transportation Systems

12,961

68.2

11,96063.2

Industrial Systems

5,333

28.1

6,172

32.6

Information Equipment Systems

699

3.7

803

4.2

Other————

Total

18,995100.0

18,935100.0

Notes:

1.
2.

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

(b) Status of Orders Received

Business segment

1H Fiscal 2018
(June 1, 2018 to November 30, 2018)
Orders Received(Millions of yen)

1H Fiscal 2019
(June 1, 2019 to November 30, 2019)

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

Balance(Millions of yen)Transportation Systems

11,192

21,821

12,85923,318Industrial Systems

7,392

8,305

6,711

7,435

Information Equipment Systems

621

425

767

678

Other8—3—

Total

19,21630,552

20,341

31,432

Notes:

1.
2.

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

(c) Sales Status

Business segment

1H Fiscal 2018
(June 1, 2018 to November 30, 2018)
Amount(Millions of yen)

1H Fiscal 2019
(June 1, 2019 to November 30, 2019)

Share(%)

Amount(Millions of yen)

Share(%)

Transportation Systems

13,12466.8

12,13962.6

Industrial Systems

5,777

29.4

6,459

33.3

Information Equipment Systems

724

3.7

790

4.1

Other

80.0

30.0

Total

19,635100.0

19,392100.0

Notes:

1.
2.

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