January 12, 2022
To whom it may concern,
Company Name Toyo Denki Seizo K.K.
Representative
Akira Watanabe, President(Stock Code: 6505, 1st Section of theTokyo Stock Exchange)
Inquiries Toshihito Nakanishi, Operating Officer,General
Manager,ManagementPlanning
Department(TEL. 03-5202-8122)

Notice on Difference between Consolidated Business Forecast and Results for the First Half of Fiscal YearEnding May 2022, Recording of Extraordinary Income, as well as Revision of Consolidated Business Forecastfor the Fiscal Year Ending May 2022
Toyo Denki Seizo K.K. (hereinafter “Toyo Denki”) today announces its consolidated business results for the first half ofthe fiscal year ending May 2022 and the difference from the forecast for the same period, which was released on July 15,2021, as well as the recording of extraordinary income as follows.
In addition, based on the results, etc. for the same period, Toyo Denki has decided to revise its consolidated business
forecast for the fiscal year ending May 2022, which was released on July 15, 2021 as follows.

1. Difference between Consolidated Business Forecast and Results for the First Half of Fiscal Year Ending May 2022(June 1, 2021 to November 30, 2021)

Net sales

Operatingincome

Ordinary income

Net income
attributable toowners of theparent

Millions of yen
15,000Millions of yen(100)

Millions of yen
50

Millions of yen
150

Yen
16.78

Results (B)14,803

(362)

(83)

186

20.82

Change (B−A)

(196)

(262)

(133)

36

Change (%)

(1.3)

--

24.1

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

16,720

177

355

451

50.49

Previous forecast (A)(Reference) Results for the first

Net income persharehalf of the previous fiscal year
(First half of the fiscal year endedMay 2021)

2. Revision of Consolidated Business Forecast for the Fiscal Year Ending May 2022 (June 1, 2021 to May 31, 2022)

Net sales

Operating

Ordinary income

incomeNet income
attributable toowners of theparent

Net income pershare

Previous forecast (A)Millions of yen
34,000Millions of yen
450

Millions of yen
700

Millions of yen
800

Yen
89.48

Revised forecast (B)33,000

250

600

700

78.29

Change (B−A)(1,000)

(200)

(100)

(100)

Change (%)(2.9)(44.4)(14.3)(12.5)

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

33,143423

757

977109.38(Reference)

Resultsfor

theprevious fiscal year
(Fiscal year ended May 2021)

3. Reasons for Difference and Revision(1) Difference between consolidated business forecast and results for the first half of fiscal year ending May 2022
Although net sales were generally in line with the previous forecast, in terms of income, due to the impacts of thelonger than expected duration of COVID-19 in the industrial business and a shortfall in the order schedule, adeterioration of factory profit and loss due to the production shortage and a decline in gross margin ratio as a resultof efforts to secure orders resulted in operating income and ordinary income falling below the previous forecast. On
the other hand, net income attributable to owners of the parent exceeded the previous forecast due to the recordingof a gain on sale of investment securities.
(2) Revision of consolidated business forecast for the fiscal year ending May 2022
In the industrial business, it is assumed that the business environment will improve in the future, but it is expectedthat it will not be able to offset the shortfall in the results of the second quarter. As a result, the consolidated business
forecast for the full year will be revised with respect to net sales, operating income, ordinary income, and net income
attributable to owners of the parent.
(Note) The above business forecasts are based on information currently available to Toyo Denki and certain assumptions
deemed to be reasonable. Actual results may differ materially from these forecasts due to various factors.

4. Recording of Extraordinary Income (Gain on Sales of Investment Securities)(1) Reason for sale of investment securities
Toyo Denki sold a portion of its investment securities to improve asset efficiency and strengthen its financialposition(2) Sales period
From June 29, 2021 to November 9, 2021
(3) Details of salei. Type of asset soldOne stock name of listed securities and one stock name of unlisted securities owned by Toyo Denki
ii. Gain on sales of investment securities
366 million yen(4) Future outlook
Toyo Denki will continue to strive to reduce its cross holdings.