October 9, 2015

Summary of Consolidated Business Results for the First Quarter 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:
October 13, 2015
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 2015
(June 1, 2015 to August 31, 2015)(1) Consolidated Operating Results(In millions of yen, except where noted; percentage figures show year-on-year increase or decrease.)

Net Sales
1Q Fiscal 2015
1Q Fiscal 2014

8,837
7,197

(Note) Comprehensive income:

22.8%
6.9%

Operating Income
－
－

166
(192)

121
(109)

1Q Fiscal 2015: (1,244) million yen [－%]
1Q Fiscal 2014: 573 million yen [－%]Net Income
per Share (Yen)

Diluted Net Income
per Share (Yen)(0.85)(4.99)－－

1Q Fiscal 2015
1Q Fiscal 2014

Net Income
Attributable to
Owners of the Parent
－
(40)
－
－
(240)
－

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

Total Assets
As of August 31, 2015
As of May 31, 2015

50,83453,041Net Assets
23,361
24,895

Shareholders’ Equity
Ratio (%)
46.0
46.9

(Reference) Shareholders’ equity: As of August 31, 2015: 23,361 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

1Q
Fiscal 2014－
Fiscal 2015－
Fiscal 2015
0.00－
(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

First half
18,000 (5.6)%
300 (48.7)%350 (59.9)%
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
Parent200 (61.2)%
1,400
26.6%

Net Income
per Share
(Yen)
4.15
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):
August 31, 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:
August 31, 2015: 486,462 shares
May 31, 2015: 484,737 shares(c) Average number of shares for the period (fiscal year-to-date):
1Q Fiscal 2015: 48,189,394 shares
1Q Fiscal 2014: 48,199,309 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 Consolidated Business Results ............................................................................................... 2(2) Explanation of Consolidated 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) Notes to Quarterly Consolidated Financial Statements ................................................................................... 9(Notes on Going Concern Assumptions) ................................................................................................... 9(Notes on Significant Fluctuations in Shareholders’ Equity) .................................................................... 9(Segment Information) .............................................................................................................................. 94.
Supporting Materials for the Financial Results ............................................................................................. 11(1) The Status of Production, Orders, and Sales.................................................................................................. 11-1-

1. Qualitative Information regarding Quarterly Financial Results(1) Explanation of Consolidated Business Results
During the first quarter (June 1, 2015 to August 31, 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 slowdown in their economic growth has
begun to manifest itself, 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 quarter of fiscal 2015, the second fiscal year of the plan, was
as follows.
Orders received increased 14.2% compared with the corresponding period of the previous fiscal year to 10,166
million yen. This overall result reflected a significant surge in orders received in the Transportation Systems
segment despite a slight decrease in the Industrial Systems segment.
Net sales increased 22.8% year on year to 8,837 million yen, reflecting a significant surge in the Transportation
Systems segment.
From a profit perspective, operating income rose by 358 million yen compared with the corresponding period of
the previous fiscal year, and recorded 166 million yen, which was the first surplus in four fiscal years for the firstquarter, mainly due to an increased profit in the Transportation Systems segment. Ordinary income increased 230
million yen, recording 121 million yen, and net income attributable to owners of the parent increased 199 million
yen to record a 40 million yen loss.
Information by business segment is presented as follows.
Transportation Systems
Orders received increased 33.2% compared with the corresponding period of the previous fiscal year to 7,657
million yen, led by a sharp upturn outside Japan.
Net sales in this segment totaled 6,020 million yen, a 27.4% increase from the corresponding period of theprevious year, due to increases both in and outside Japan.
Segment profit increased 90.5% compared with the corresponding period of the previous fiscal year to 604
million yen.
Industrial Systems
While orders received for testing equipment for automotive development increased, those for social infrastructure
significantly declined. In overall terms, orders received decreased 18.5% compared with the corresponding periodof the previous fiscal year to 2,383 million yen.
Net sales increased 12.3% year on year to 2,637 million yen as sales of testing equipment for automotive
development were robust.
Segment profit totaled 137 million yen, a 163.0% increase compared with the corresponding period of theprevious fiscal year.
Information Equipment Systems
Orders received in this segment decreased 44.7% to 124 million yen, primarily due to significant decreases both inrailway station operating equipment and remote monitoring systems.
Net sales in this segment increased 46.9 % year on year to 178 million yen with a rise in sales of railway station
operating equipment.
Segment profit was a 1 million yen loss, a decrease of 15 million yen compared with the corresponding periodof the previous fiscal year 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 Consolidated Financial Position
Total assets as of August 31, 2015 stood at 50,834 million yen, a decrease of 2,206 million yen compared with theend of the previous fiscal year. Despite an increase in inventories of 578 million yen, the decrease in total assets
was largely attributable to decreases in cash and cash equivalents of 994 million yen, and investment securities of
1,817 million yen, respectively.
Total liabilities amounted to 27,473 million yen, a decrease of 672 million yen compared with the previous
fiscal year end. Despite a 1,087 million yen increase in borrowings, the decrease in total liabilities was largely
attributable to declines in income taxes payable of 583 million yen, and reserve for employees’ bonuses of 453
million yen, and deferred tax liabilities of 559 million yen, respectively.
Net assets stood at 23,361 million yen, 1,534 million yen less than the balance as of the previous fiscal year end.
Major movements were a 330 million yen decrease in retained earnings and a 1,243 million yen decrease inunrealized holding gain on available-for-sale securities.
(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 quarter 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 Quarter of Fiscal
2015 (August 31, 2015)

AssetsCurrent assets
Cash and cash equivalents

3,570

2,576

Trade notes and accounts receivable

14,838

14,680

Products and finished goods

1,283

1,215

Work in process

2,962

3,389

Raw materials and stored goods

2,149

2,368

828

805

Other
Allowance for doubtful accounts
Total current assets

(40)

(0)

25,59325,036

Fixed assets
Property, plant and equipment

7,058

7,074

Accumulated depreciation(4,320)(4,376)

Buildings and structures, net

2,737

2,697

Buildings and structures

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

6,792

6,838

(5,930)(6,001)

862

836

289

289

227

217

3,272

3,302

(2,786)(2,828)

486

473

4,603

4,514

Software

204

201

Other

144

174

Total intangible assets

348

376

Investment securities

20,326

18,509

Other

2,180

2,410

Other, net
Total property, plant and equipment
Intangible assets

Investments and other assets

Allowance for doubtful accounts

(12)

(12)

Total investments and other assets

22,49520,90727,447

25,79853,041

50,834

Total fixed assets
Total assets-5-

(Millions of yen)
As of May 31, 2015

End of the First Quarter of Fiscal
2015 (August 31, 2015)

Trade notes and accounts payable

5,116

3,856

Electronically recorded obligations - operating

3,022

4,398

Short-term debt

1,783

2,987

Income taxes payable

652

68

Consumption and other taxes payable

249

59

Accrued expenses

992

1,049

Advances received

288

160

Deposits received

230

328

Reserve for directors’ bonuses

41

10

Reserve for employees’ bonuses

927

474

Reserve for order losses

301

345

Liabilities
Current liabilities

Allowance for environmental development

65

64

Other

307

151

13,97913,955

7,640

7,524

141

141

Net defined benefit liability

3,725

3,755

Deferred tax liabilities

2,618

2,059

40

38

14,166

13,51828,14527,473

Capital stock

4,998

4,998

Capital surplus

3,177

3,177

Retained earnings

8,698

8,368

Treasury stock

(171)

(172)

Total shareholders’ equity

16,702

16,371

8,317

7,073

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)

(371)

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

-6-

8,193

6,989

24,89523,36153,041

50,834

(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statements of Income for the First Quarter of Fiscal 2015)(Millions of yen)
1Q FY2014
1Q FY2015(June 1, 2014 to August 31, 2014) (June 1, 2015 to August 31, 2015)
Net sales

7,197

8,837

Cost of sales

5,571

6,852

Gross profit

1,625

1,985

Selling, general and administrative expenses

1,817

1,818

Operating income (loss)

(192)

166

Interest income

00Dividend income

104

110

Foreign exchange gains

25-

Non-operating income

Miscellaneous income
Total non-operating income

5

10

135

120

35

29

7

7

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

00Loss on foreign currency exchange-

124

Miscellaneous loss

9

3

52

164

(109)

121

Gain on sales of fixed assets

12-

Total extraordinary income

12-

Income (loss) before income taxes

(96)

121

Total non-operating expenses
Ordinary income (loss)
Extraordinary income

Income taxes:
Current

3

44

Deferred

140

118

144

162

Net loss

(240)

(40)

Net loss attributable to owners of the parent

(240)

(40)

Total income taxes-7-

(Consolidated Statements of Comprehensive Income)(Millions of yen)
1Q FY2014
1Q FY2015(June 1, 2014 to August 31, 2014) (June 1, 2015 to August 31, 2015)
Net loss
Other comprehensive income
Unrealized holding gain (loss) on available-for-salesecurities
Deferred gains or losses on hedges

(240)

(40)

782

(1,243)26-

Foreign currency translation adjustments

(6)

26

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

42

11

(29)

1

814

(1,203)573(1,244)573(1,244)--Comprehensive income
Comprehensive income attributable to:
Owners of the parent
Non-controlling interests-8-(3) 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 Quarter of Fiscal 2014 (June 1, 2014 to August 31, 2014)
Information regarding Net Sales and Income (Loss) by Reporting Segment
Reporting Segment
Transportation Industrial Information
Systems
Systems
Equipment
Systems

Other1

Total(Millions of yen)AmountRecorded on
Adjustment Quarterly
Amount2
Consolidated
Statementsof Income3

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

4,725

2,348

121

1

7,197

—

7,197

2

0

—

120

123

(123)

—

Total
4,727
2,348
121
122 7,320
(123)
7,197
Segment profit (loss)
317
52
13
10
393
(586)
(192)
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 586 million yen. This is comprised of anelimination of inter-segment sales and transfer amount of 1 million yen and corporate expenditure (a loss of
585 million yen) that is not allocated to each reporting segment. Corporate expenditure is primarily comprisedof selling, general and administrative expenses as well as research and development costs that are not allocatedto each reporting segment.
3. Segment profit (loss) has been adjusted with operating loss recorded under the quarterly consolidated
statements of income.

-9-

First Quarter of Fiscal 2015 (June 1, 2015 to August 31, 2015)
Information regarding Net Sales and Income (Loss) by Reporting Segment
Reporting Segment
Transportation Industrial Information
Systems
Systems
Equipment
Systems

Other1

Total(Millions of yen)AmountRecorded on
Adjustment Quarterly
Amount2
Consolidated
Statementsof Income3

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

6,020

2,637

178

1

8,837

—

8,837

0

0

―

137

138

(138)

—

Total
6,020
2,637
178
139 8,976
(138)
8,837
Segment profit (loss)
604
137
(1)
5
745
(579)
166
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 579 million yen. This is comprised of anelimination of inter-segment sales and transfer amount of 1 million yen and corporate expenditure (a loss of
577 million yen) that is not allocated to each reporting segment. Corporate expenditure is primarily comprisedof selling, general and administrative expenses as well as research and development costs that are not allocatedto each reporting segment.
3. Segment profit (loss) has been adjusted with operating loss recorded under the quarterly consolidated
statements of income.

- 10 -

4. Supporting Materials for the Financial Results(1) The Status of Production, Orders, and Sales(a) Production Status
1Q FY2014(June 1, 2014 to August 31, 2014)
Business segment
Millions of yen
Share (%)
Transportation Systems
5,868
70.3
Industrial Systems
2,388
28.6
Information Equipment
96
1.2
Systems
Other
―
―
Total
8,352
100.0
Notes:
1. Amounts are based on sales prices.
2. Amounts are exclusive of consumption and other taxes.

1Q FY2015(June 1, 2015 to August 31, 2015)
Millions of yen
Share (%)
6,298
72.9
2,191
25.4
149

1.7

—
8,640

—
100.0

(b) Status of Orders Received
Business segment

1Q FY2014(June 1, 2014 to August 31, 2014)
Orders Received
Balance(Millions of yen)
(Millions of yen)
5,749
26,6722,924
5,504Transportation Systems
Industrial Systems
Information Equipment
225
343
Systems
Other
1
—
Total
8,901
32,521
Notes:
1. Amounts are based on sales prices.
2. Amounts are exclusive of consumption and other taxes.

1Q FY2015(June 1, 2015 to August 31, 2015)
Orders Received
Balance(Millions of yen)
(Millions of yen)
7,657
26,215
2,383
6,380
124

43

1
10,166―32,639(c) Sales Status
Business segment

1Q FY2014(June 1, 2014 to August 31, 2014)
Millions of yen
Share (%)
4,725
65.7
2,348
32.6

Transportation Systems
Industrial Systems
Information Equipment
121
1.7
Systems
Other
1
0.0
Total
7,197
100.0
Notes:
1. Amounts are based on sales prices.
2. Amounts are exclusive of consumption and other taxes.

- 11 -

1Q FY2015(June 1, 2015 to August 31, 2015)
Millions of yen
Share (%)
6,020
68.1
2,637
29.8
178

2.0

1
8,837

0.0
100.0