April 14, 2023

Consolidated Financial Results for the Nine Months Ended February 28, 2023
(Under Japanese GAAP)
Company name:Toyo Denki Seizo K.K.
Listing:
Tokyo Stock Exchange
Securities code:6505
URL
https://www.toyodenki.co.jp
Representative:
Akira Watanabe, Representative Director, President
Inquiries:
Jun Nukina, Operating Officer, General Manager, Management Planning Division
Telephone:+81-3-5202-8122
Scheduled date to file quarterly securities report:
April 14, 2023
Scheduled date to commence dividend payments:―Preparation of supplementary material on quarterly financial results:
YesHolding of quarterly financial results briefing:
Yes(Yen amounts are rounded down to millions, unless otherwise noted.)1.

Consolidated financial results for the nine months ended February 28, 2023 (from June 1,2022 to February 28, 2023)(1) Consolidated operating results (cumulative)(Percentages indicate year-on-year changes.)
Net sales

Operating profit

Millions of yen

Profit attributable toowners of parent

Ordinary profit% Millions of yen% Millions of yen% Millions of yen%

Nine months ended
February 28, 2023

20,744(4.6)

89－488791.7432

47.5

February 28, 2022

21,744

(9.8)

(349)

－54(83.2)

293(29.5)

Note: Comprehensive income

For the nine months ended February 28, 2023: ¥908 million [-%]For the nine months ended February 28, 2022:¥(559) million [-%]

Basic earnings per share

Diluted earnings per share

Yen

Yen

Nine months ended
February 28, 2023

48.40

－February 28, 2022

32.80－(2) Consolidated financial position
Total assets

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen%

As ofFebruary 28, 2023

47,92522,65247.3

May 31, 2022

46,91622,012

46.9

Reference: Equity

As of February 28, 2023:¥22,652 million
As of May 31, 2022:¥22,012 million

2.

Cash dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Yen

Yen

Fiscal year ended
May 31, 2022

－0.00

－

30.00

30.00

Fiscal year ending
May 31, 2023

－0.00
－

30.00

30.00

Fiscal year ending
May 31, 2023
(Forecast)Fiscal year-end

Total

Note: Revisions to the forecast of cash dividends most recently announced: None3.

Consolidated financial results forecast for the fiscal year ending May 31, 2023 (from June
1, 2022 to May 31, 2023)(Percentages indicate year-on-year changes.)
Net sales

Fiscal year ending
May 31, 2023

Operating profit

Profit attributable toowners of parent

Ordinary profit

Basic earnings pershare

Millionsof yen%Millionsof yen%Millionsof yen%Millionsof yen%Yen

34,00012.7

450161.8700(8.6)

800－89.48

Note: Revisions to the financial results forecast most recently announced: None

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scopeof consolidation):
None
Newly included: - companies (Company name)
Excluded:- companies (Company name)Notes on changes in significant subsidiaries during the period(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements
None:

Notes on adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates : None(iv) Restatement : None: NoneNotes on changes in accounting policies(4) Number of issued shares (common shares)(i) Total number of issued shares at the end of the period (including treasury shares)
As of February 28, 2023
As of May 31, 2022

9,735,000
9,735,000(ii) Number of treasury shares at the end of the period
As of February 28, 2023
As of May 31, 2022

795,188794,608(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Nine months ended February 28, 2023
8,940,105
Nine months ended February 28, 2022
8,940,650
Notes on number of issued shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or anaudit corporation.
* Proper use of earnings forecasts, and other special matters
The above forecasts are based on information available as of the date of publication of this document, and actual results
may differ from the forecasts due to various factors in the future. Please refer to “Explanation of Consolidated Financial
Results Forecast and Other Forward-looking Information” on page 3 of the Attachment for details of the financial
results forecast (available in Japanese only).
* This document has been translated from a part of the Japanese original for reference purposes only. In the event ofany discrepancy between this translated document and the Japanese original, the original shall prevail.

Toyo Denki Seizo K.K. (6505) Financial Results for the Nine Months Ended February 28, 2023

2. Quarterly Consolidated Financial Statements and Significant Notes Thereto(1) Quarterly Consolidated Balance Sheet(Millions of yen)
As of May 31, 2022
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsElectronically recorded monetary claims - operating
Merchandise and finished goods
Work in process
Raw materials and supplies
Advance payments to suppliers
Accounts receivable
Other
Allowance for doubtful accounts

As of February 28, 2023

4,449
12,091

4,033
12,3181,136501
3,077
2,688
825212
(1)

986
636
4,487
2,769
23200534(1)24,18925,98910,326(6,341)

9,953(6,273)

Buildings and structures, net

3,985

3,680

Machinery, equipment and vehicles
Accumulated depreciation

8,185(7,605)

8,201(7,791)

579

410

1,270
7
4,977
(4,497)1,269
75,058(4,597)

479

460

6,322

5,828

87
1474
13

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

Machinery, equipment and vehicles, 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

10187

12,471
883
2,953
(6)

12,634587
2,804(7)Total investments and other assets

16,302

16,01822,726

21,935

46,91647,925

Total non-current assets
Total assets

Toyo Denki Seizo K.K. (6505) Financial Results for the Nine Months Ended February 28, 2023
(Millions of yen)
As of May 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Accrued expenses
Income taxes payable
Accrued consumption taxes
Contract liabilities
Deposits received
Provision for bonuses for directors (and other officers)
Provision for bonuses
Provision for loss on orders received
Other

As of February 28, 2023

1,610
4,205
585
688
306
82
47
190
6
699
970
176

2,103
4,299
1,585
865
24
32
105
190
4344
818
100

9,569

10,472

11,17338
4,113
6

10,67730
4,087
415,33314,800Total liabilities

24,90325,272

Net assetsShareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares

4,998
3,177
11,122(1,282)

4,998
3,177
11,286(1,282)

Total current liabilities
Non-current liabilities
Long-term borrowings
Long-term accounts payable - other
Retirement benefit liability
Other
Total non-current liabilities

18,01618,180

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans

Total shareholders’ equity

3,913
144(61)

4,210
304(43)Total accumulated other comprehensive income

3,996

4,472

22,012

22,652

46,91647,925

Total net assets
Total liabilities and net assets

Toyo Denki Seizo K.K. (6505) Financial Results for the Nine Months Ended February 28, 2023

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income
Quarterly Consolidated Statement of Income
Nine months ended February 28, 2023
(Millions of yen)
Nine months ended
February 28, 2022

Nine months endedFebruary 28, 2023

Net sales
Cost of sales

21,744
17,063

20,744
15,739Gross profit

4,680

5,005

Selling, general and administrative expenses

5,030

4,916

Operating profit (loss)(349)

8901501630198
156

9449

71
22459

449

4509400
955

49

Ordinary profit

54488

Extraordinary income
Gain on sale of investment securities
Gain on reversal of foreign currency translation adjustment

366
94

480

Gain on sale of non-current assets－150

Total extraordinary income

460

631

Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using the equity
methodForeign exchange gains
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Loss on abandonment of non-current assets
Miscellaneous losses
Total non-operating expenses－Extraordinary loss
Loss on valuation of investment securities

46－

Business structural reform expenses－490

Total extraordinary loss

46490

Profit before income taxes

468

630

Income taxes - current
Income taxes - deferred

8887

26
170

Total income taxes

175

197

Profit293

432

Profit attributable to owners of parent

293432

Toyo Denki Seizo K.K. (6505) Financial Results for the Nine Months Ended February 28, 2023
Quarterly Consolidated Statement of Comprehensive Income
Nine months ended February 28, 2023
(Millions of yen)
Nine months ended
February 28, 2022
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

Nine months ended
February 28, 2023
293432(877)2297

18318160(853)475Comprehensive income

(559)

908

Comprehensive income attributable to:
Owners of parent
Non-controlling interests

(559)

908

－－Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted forusing the equity method
Total other comprehensive income－Toyo Denki Seizo K.K. (6505) Financial Results for the Nine Months Ended February 28, 2023

(3) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption)
Not applicable(Notes on Significant Changes in Shareholders’ Equity)
Not applicableToyo Denki Seizo K.K. (6505) Financial Results for the Nine Months Ended February 28, 2023
(Segment Information, etc.)[Segment Information]
Nine months ended February 28, 2022Information regarding net sales and profit (loss) by reporting segment
Reporting segments

Transportation
Business

ICT Solution
BusinessIndustry
Business

Other(Note 1)

Total(Millions of yen)Amountrecorded onquarterly
Adjustments
consolidated(Note 2)statement ofincome(Note 3)

Net sales
Net sales to externalcustomers
Intersegment sales andtransfers

14,164

7,015

557

6

21,744－

21,744

100－

249

260

(260)

－

Total

14,175

7,015

557

256

22,004(260)

21,744

Segment profit (loss)
1,486
63111(16)1,644(1,994)(349)
Notes: 1.
“Other” is a business segment that is not included in reporting segments, and includes the worker dispatching business.
2.
Adjustments to segment profit (loss) of ¥(1,994) million are the elimination of intersegment transactions of ¥(0) million
and corporate expenses of ¥(1,994) million that are not attributable to reporting segments. Corporate expenses areprimarily general and administrative expenses as well as research and development expenses that are not attributableto reporting segments.
3.
Segment profit (loss) has been adjusted with operating loss recorded on the quarterly consolidated statement of income.

Nine months ended February 28, 2023
1.

Information regarding net sales and profit (loss) by reporting segment
Reporting segments

Transportation
BusinessIndustry
Business

ICT Solution
Business

Other(Note 1)

Total(Millions of yen)Amountrecorded onquarterly
Adjustments
consolidated(Note 2)statement ofincome(Note 3)

Net sales
Net sales to externalcustomers
Intersegment sales andtransfers

13,262

6,570

907

3

20,744－

20,744220－

225

248(248)－

Total

13,285

6,571

907

229

20,993(248)

20,744

Segment profit (loss)
1,731
24284(12)2,027(1,938)
89
Notes: 1.
“Other” is a business segment that is not included in reporting segments, and includes the worker dispatching business.
2.
Adjustments to segment profit (loss) of ¥(1,938) million are the elimination of intersegment transactions of ¥(0) million
and corporate expenses of ¥(1,938) million that are not attributable to reporting segments. Corporate expenses areprimarily general and administrative expenses as well as research and development expenses that are not attributableto reporting segments.
3.
Segment profit (loss) has been adjusted with operating profit recorded on the quarterly consolidated statement ofincome.
2.

Matters regarding changes, etc. in reporting segments
The reporting segment originally named “Information Equipment Systems” has been renamed the “ICT Solution Business”
from the three months ended August 31, 2022. This name change has no impact on the segment information.
As a result of this change, the segment information for the nine months ended February 28, 2022 is also presented under thenew name.

Toyo Denki Seizo K.K. (6505) Financial Results for the Nine Months Ended February 28, 2023

3. Other(1) Status of Production, Orders, and Sales(i) Production status

Business segment

Nine months ended February 28, 2022

Nine months ended February 28, 2023

Amount(Millions of yen)Amount(Millions of yen)

Share(%)

Share(%)

Transportation Business

13,19466.1

14,24167.0

Industry Business

6,476

32.4

6,591

31.0

ICT Solution Business

304

1.5

434

2.0

Other－－－－

Total

19,975100.0

21,268100.0

Note: Amounts are based on sales prices.
(ii) Status of orders received
Business segment

Nine months ended February 28, 2022

Nine months ended February 28, 2023

Orders received(Millions of yen)Orders received(Millions of yen)Order backlog(Millions of yen)Order backlog(Millions of yen)Transportation Business

13,64820,94916,34023,887

Industry Business

6,783

5,183

7,792

7,422

ICT Solution Business

712

260

1,147504

Other

6－

3－

Total

21,151

26,39325,28431,815

Note: Amounts are based on sales prices.
(iii) Sales status
Business segment

Nine months ended February 28, 2022

Nine months ended February 28, 2023

Amount(Millions of yen)Amount(Millions of yen)

Share(%)

Share(%)

Transportation Business

14,16465.1

13,26263.9

Industry Business

7,015

32.3

6,570

31.7

ICT Solution Business

557

2.6907

4.4

Other

60.0

30.0

Total

21,744100.0

20,744100.0

Note: Amounts are based on sales prices.