July 11, 2019

Summary of Consolidated Business Results for Fiscal 2018
Company name
Stock Code:
Representative:
Inquiries:

Toyo Denki Seizo K. K.
Stock Exchange: 1st Section of the Tokyo Stock Exchange
6505
URL https://www.toyodenki.co.jp
Kenzo Terashima, President
Takatoshi Otsuka, General Manager, Management Planning Division
TEL +81-3-5202-8122
Scheduled date of convention of ordinary general meeting of shareholders: August 28, 2019
Scheduled date of commencement of dividend payments: August 29, 2019
Scheduled date of submission of financial report: August 29, 2019
Preparation of financial report’s supplemental explanatory materials: Yes
Holding of financial results briefing: Yes (for institutional
investors and analysts)(Fractions of ¥1 million are rounded off)1.

Consolidated Performance for Fiscal 2018 (June 1, 2018 to May 31, 2019)(1) Consolidated Operating Results(In millions of yen, except where noted; percentage figures show year-on-year increase or decrease.)
Net Income
Attributable to
Net Sales
Operating Income
Ordinary Income
Owners of the
ParentFiscal 2018
41,172(3.2)%
557
52.0%
495
(3.8)%
690(0.3)%
Fiscal 2017
42,5274.6%366 (76.7)%
515 (69.0)%
692 (41.0)%(Note) Comprehensive income: Fiscal 2018:(251) million yen (-%)
Fiscal 2017:
2,009 million yen (32.8%)
Net Income per
Share (Yen)Net Income to
Ordinary
Shareholders’
Income to Total
Equity Ratio
Assets Ratio
(%)
(%)
—
2.7
0.8
—
2.7
0.9
Fiscal 2018:
10 million yen
Fiscal 2017: 116 million yen

Diluted Net
Income per
Share (Yen)

Fiscal 2018
75.27
Fiscal 2017
73.33
Equity method investment gain or loss for:

Operating
Income to Net
Sales Ratio (%)1.40.9(2) Consolidated Financial Position(In millions of yen, except where noted)
Shareholders’
Net Assets per ShareTotal Assets
Net Assets
Equity Ratio (%)(Yen)
Fiscal 2018
58,00124,80442.8
2,773.87
Fiscal 201763,291
26,32741.6
2,788.01(Reference) Shareholders’ equity
Fiscal 2018: 24,804 million yen
Fiscal 2017: 26,327 million yen-1-(3) Consolidated Cash Flows

Fiscal 2018
Fiscal 20172.

Cash Flow fromOperating
Activities
3,720(1,572)

Cash Flow from
Investing Activities(1,019)(3,087)

Dividend Information
Annual Dividend (Yen)

Fiscal 2017
Fiscal 2018
Fiscal 2019
(Forecast)3.

(In millions of yen, except where noted)
Cash Flow from
Cash and Cash
FinancingEquivalents at the End
Activitiesof the Fiscal Year
(2,012)
2,240
4,140
1,555

Total Annual
Dividends

Dividend
Payout Ratio

Dividend on
Equity Ratio

1Q

Interim

3Q

Fiscal

—
—

0.00
0.00

—
—

50.00
30.00

Total (Millions of yen) (consolidated, %) (consolidated, %)
50.00
472
68.2
1.9
30.00
268
39.9
1.1

—

0.00

—

30.00

30.00

29.8

Consolidated Performance Forecast for Fiscal 2019 (June 1, 2019 to May 31, 2020)(In millions of yen, except where noted; percentage figures show year-on-year increase or decrease.)
Net Income
Net Income
Attributable toOperating
Ordinary
Net Sales
per Share
IncomeIncomeOwners of the(Yen)
ParentFirst 6 months 20,100
2.4%
300
—
400
—
400 173.2%
44.73
Full year
42,0002.0%
900 61.4% 1,100 121.8%
900
30.4%
100.65* Notes:(1) Transfers of major subsidiaries during the period (transfers of specified subsidiaries accompanied bychanges in the scope of consolidation): No(2) 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(3) Shares outstanding (common stock)(a) Number of shares outstanding as of the end of the period (including treasury stock):
Fiscal 2018: 9,735,000 sharesFiscal 2017: 9,735,000 shares(b) Number of shares of treasury stock as of the end of the period:
Fiscal 2018: 792,966 sharesFiscal 2017: 291,907 shares(c) Average number of shares for the period (fiscal year-to-date):
Fiscal 2018: 9,173,463 sharesFiscal 2017: 9,443,696 shares-2-

(Reference) Non-Consolidated Financial Statements

1.

Non-Consolidated Business Results for Fiscal 2018 (June 1, 2018 to May 31, 2019)(1) Non-Consolidated Operating Results(In millions of yen, except where noted; percentage figures show year-on-year increase or decrease.)
Net Sales
Operating Income
Ordinary Income
Net Income
Fiscal 201833,804(3.5)%(145)—
341
165.1%
707
5.5%
Fiscal 201735,0293.9%(443)—
128 (89.1)%
670 (14.5)%
Net Income per
Share (Yen)
Fiscal 2018
Fiscal 2017

77.07
71.00

Diluted Net
Income per Share
(Yen)
—
—

(2) Non-Consolidated Financial Position
Total Assets
Fiscal 2018
Fiscal 2017
(Reference) Shareholders’ equity

53,88958,772
Fiscal 2018:
Fiscal 2017:

Shareholders’Equity Ratio (%)
20,67538.4
22,06837.5
20,675 million yen
22,068 million yen

Net Assets

Net Assets per
Share (Yen)
2,312.22
2,337.01* The Summary of Consolidated Business Results is not subject to auditing by a certified public
accountant or audit firm.
* 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 andbeliefs in light 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. Pleaserefer to “1. Overview of business results, etc.” in Accompanying Materials on page 2 for details relating toforecasts of operating results.

*This report is an abridged translation of the Japanese summary of consolidated business results, which has
been prepared in accordance with accounting principles generally accepted Japan, for reference purpose
only.

-3-

3.

Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of May 31, 2018
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
Other
Allowance 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
Software in progress
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-4-

As of May 31, 2019

1,555
16,960
1,152
1,006
3,506
3,319
30
547
534
(1)
28,611

2,240
14,192
1,443
991
3,504
3,074
47
461
64
(1)
26,01911,981(4,707)
7,274
7,742(6,310)
1,432
1,301
320
3,953
(3,116)837
11,166

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

885
3
15
904

677
—
14
692

19,681
95
2,845
(12)
22,60934,68063,291

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

(Millions of yen)
As of May 31, 2018
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 gain on available-for-salesecurities
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets-5-

As of May 31, 2019

4,057
6,295
7,241
841
180
38
188
229
25
814
689
1,716
22,320

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

8,930
35
1,756
3,862
58
14,64436,964

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

4,998
3,177
10,579(480)
18,274

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

8,111
188
(247)
8,052
26,327
63,291

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

(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statements of Income)(Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Equity in profit of unconsolidated subsidiaries andaffiliates
Gain on foreign currency exchange
Reversal of expenses for environmental countermeasures
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expense
Loss on foreign currency exchange
Commission fee
Loss on disposal of fixed assets
Miscellaneous loss
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Other
Total extraordinary income
Extraordinary loss
Expenses for plant integration
Expenses for commemorative events of the 100th
anniversary
Loss on sales of non-current assets
Total extraordinary losses
Income before income taxes
Current
Deferred
Total income taxes
Net income
Net income attributable to owners of the parent-6-

For the fiscal year ended
May 31, 2018
(June 1, 2017 to
May 31, 2018)
42,52734,454
8,072
7,705
366

For the fiscal year ended
May 31, 2019
(June 1, 2018 to
May 31, 2019)41,17233,333
7,839
7,281
557

2
233

1
242

116
6
40
61
459

10
—
—
47
301

148
—
93
1
67
310
515

143
82
76
4
55
363
495

4
806
2
814

—
804
—
804

339

—

18
7
365
964
332
(60)
272
692
692

53
—
53
1,246
448
107
556
690
690

(Consolidated Statements of Comprehensive Income)(Millions of yen)

Net income
Other comprehensive income
Unrealized holding gain on available-for-sale securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income of affiliates towhich the equity method is applied
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of the parent
Non-controlling interests-7-

For the fiscal year ended
May 31, 2018
(June 1, 2017 to
May 31, 2018)692

For the fiscal year ended
May 31, 2019
(June 1, 2018 to
May 31, 2019)
690

1,231
(4)
53

(934)
19
54

36
1,317
2,009

(81)
(941)
(251)

2,009
—

(251)
—

(3) Consolidated Statements of Changes in Net Assets
For the fiscal year ended May 31, 2018 (June 1, 2017 to May 31, 2018)(Millions of yen)
Shareholders’ equity
Treasury stock

Total
shareholders’equity10,170(477)

17,868

—

(283)

—

(283)

—

—

692

—

692

Acquisition of treasury stock

—

—

—

(2)

(2)

Net changes of items otherthan shareholders’ equity

—

—

—

—

—

Total change during fiscal period
under review

—

—

409

(2)

406

Balance as of the end of fiscal
period under review

4,998

3,177

10,579(480)

18,274

Capital stock

Capital surplus

4,998

3,177

Distribution of retained
earnings—

Net income attributable toowners of the parent

Balance as of the beginning of
the fiscal period under review

Retainedearnings

Change during fiscal period
under review

Accumulated other comprehensive income
Unrealized
holding gain
on availableforsale securities
Balance as of the beginning of
the fiscal period under review

Foreigncurrencytranslation
adjustments

Remeasurements ofdefined benefit
plans

Total
accumulated
othercomprehensive
incomeTotal net assets

6,879

156

(300)

6,735

24,603Distribution of retained
earnings

—

—

—

—

(283)

Net income attributable toowners of the parent

—

—

—

—

692

Acquisition of treasury stock

—

—

—

—

(2)

Net changes of items otherthan shareholders’ equity

1,231

31

53

1,317

1,317

Total change during fiscal period
under review

1,231

31

53

1,317

1,723

Balance as of the end of fiscal
period under review

8,111

188

(247)

8,052

26,327

Change during fiscal period
under review-8-For the fiscal year ended May 31, 2019 (June 1, 2018 to May 31, 2019)(Millions of yen)
Shareholders’ equity
Treasury stock

Total
shareholders’equity10,579(480)

18,274

—

(472)

—

(472)

—

—

690

—

690

Acquisition of treasury stock

—

—

—

(800)

(800)

Net changes of items otherthan shareholders’ equity

—

—

—

—

—

Total change during fiscal period
under review

—

—

218

(800)

(581)

Balance as of the end of fiscal
period under review

4,998

3,177

10,797(1,280)17,693

Capital stock

Capital surplus

4,998

3,177

Distribution of retained
earnings—

Net income attributable toowners of the parent

Balance as of the beginning of
the fiscal period under review

Retainedearnings

Change during fiscal period
under review

Accumulated other comprehensive income
Unrealized
holding gain
on availableforsale securities
Balance as of the beginning of
the fiscal period under review

Foreigncurrencytranslation
adjustments

Remeasurements ofdefined benefit
plans

Total
accumulated
othercomprehensive
incomeTotal net assets

8,111

188

(247)

8,052

26,327

Distribution of retained
earnings

—

—

—

—

(472)

Net income attributable toowners of the parent

—

—

—

—

690

Acquisition of treasury stock

—

—

—

—

(800)

Net changes of items otherthan shareholders’ equity

(934)

(61)

54

(941)

(941)

Total change during fiscal period
under review

(934)

(61)

54

(941)

(1,523)

Balance as of the end of fiscal
period under review

7,176

126

(192)

7,110

24,804

Change during fiscal period
under review-9-(4) Consolidated Statements of Cash Flows(Millions of yen)
For the fiscal year ended
May 31, 2018
(June 1, 2017 to
May 31, 2018)
Cash flow from operating activities
Income before income taxes
Depreciation and amortization
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in reserve for employees’ bonuses
Increase (decrease) in net defined benefit liability
Interest and dividends income
Interest expense
Loss (gain) on sales of investment securities
Loss (gain) on sales of non-current assets
Expenses for plant integration
Decrease (increase) in notes and accounts receivable- trade
Decrease (increase) in inventories
Increase (decrease) in trade notes
Increase (decrease) in reserve for order losses
Increase (decrease) in advances received
Increase (decrease) in accrued expenses
Decrease (increase) in consumption and other taxes receivable
Increase (decrease) in consumption and other taxes payable
Other
SubtotalInterest and dividends income received
Interest expenses paid
Refund of (Payments for) corporate and other taxes
Cash Flow from Operating Activities
Cash flow from investing activities
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchases of intangible assets
Purchases of investment securities
Proceeds from sales of investment securities
Payments of loans receivableCollection of loans receivable
Payments for investments in capital of subsidiaries
Other
Cash Flow from Investing Activities
Cash flow from financing activities
Increase (decrease) in short-term loans payable, net
Proceeds from long-term debt
Repayment of long-term debt
Purchase of treasury stock
Cash dividends paid
Other
Cash Flow 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 theperiodBalance of cash and cash equivalents at the end of the period- 10 -For the fiscal year ended
May 31, 2019
(June 1, 2018 to
May 31, 2019)

964
1,237
0

1,246
1,774
(0)

(138)
(46)
(235)
148
(806)
2
66
(1,812)(1,370)
1,567
340
68
(233)
(410)
(95)
(163)
(917)
244
(148)
(751)
(1,572)

5
37
(244)
143
(804)
—
—
2,527
290
(1,790)
(134)
(129)
(170)
415
540
120
3,828
259
(146)
(221)
3,720

(3,448)
79
(132)
(170)
1,100
(70)
35
(491)
11
(3,087)(2,277)
—
(49)
(260)
1,441
—
35
—
92
(1,019)

2,929
5,500
(4,002)
(2)
(283)
(0)
4,140
(16)
(535)

(1,990)4,600(3,355)
(800)
(471)
4
(2,012)
(4)
685

2,091
1,555

1,555
2,240

(5) Notes on Consolidated Financial Statements(Notes regarding assumption of a going concern)
Not applicable.

[Segment Information]
1. Outline of reportable segments
The reportable segments of the Group are components for which discrete financial information is available
and whose operating results are regularly reviewed by the Board of Directors to make decisions about
resource allocation and to assess performance.
The Group establishes business units by product and each business unit designs domestic and overseas
comprehensive strategies for its products and is developing business activities. Accordingly, the Groupconsists of the three reportable segments by product based on the business units, which are Transportation
Systems, Industrial Systems and Information Equipment Systems.
[Details of each segment]•
Transportation Systems
Manufacturing, sales and related construction for electrical equipment used in rail vehicles, alternative
rail vehicles and special purpose vehicles, as well as electric storage systems for railway applications,etc.
•

Industrial Systems
Manufacturing, sales and related construction for systems for industrial production and processing
facilities, automobile testing systems, power generation and source systems, water supply and sanitationequipment systems, electrical equipment used in automobiles, etc.

•

Information Equipment Systems
Manufacturing, sales and related construction services for station operating equipment systems, remotemonitoring systems and information systems equipment, etc.

2.

Basis for calculating sales, profits or losses, assets and liabilities, and other items by reportablesegments
The method of accounting process of reportable segments is equivalent to the method described in “Notes onimportant matters for the preparation of consolidated financial statements.”
Segment profit is evaluated based on operating income. Inter-segment sales and transfers are recorded at thesame prices used in transactions with third parties.

- 11 -

3.

Information on amounts of sales, profits or losses, assets and liabilities, and other items byreportable segments

For the fiscal year ended May 31, 2018 (June 1, 2017 to May 31, 2018)(Millions of yen)
Reportable segments

Net sales
Sales to third parties
Inter-segment sales ortransfers
Total

Other
(Note)

Adjustments

Consolidated

42,527—42,527

711

726

(726)

—

Transportation
Systems

Industrial
Systems

Information
Equipment
Systems

27,94911,769

2,801

6

13

1

—

Total

27,963

11,771

2,801

717

43,253(726)

42,527

Segment profit

2,578

276

314

41

3,210

(2,844)366

Segment assets

22,234

15,0762,237

596

40,14523,146

63,291

648

290

23

1

963

273

1,237

747

3,843

23

—

4,614

158

4,772

Other items
Depreciation andamortization
Increase in property,
plant and equipment andintangible assets(Note)“Other” represents business units which are not included in reportable segments and consists ofworker dispatching service related activities, etc.

For the fiscal year ended May 31, 2019 (June 1, 2018 to May 31, 2019)(Millions of yen)
Reportable segments

Net sales
Sales to third parties
Inter-segment sales ortransfers
Total

Other
(Note)

Adjustments

Consolidated

41,172—

41,172

591

642

(642)

—

605

41,814(642)

41,172

Transportation
Systems

Industrial
Systems

Information
Equipment
Systems

27,235

12,339

1,583

13

50

0

—

27,285

12,340

1,583

Total

Segment profit

2,427

650

290

34

3,401

(2,843)557

Segment assets

20,216

14,3101,199

572

36,30021,70158,001

718

691

92

1

1,503

270

1,774

595

366

109

13

1,085

5

1,090

Other items
Depreciation andamortization
Increase in property,
plant and equipment andintangible assets(Note)“Other” represents business units which are not included in reportable segments and consists ofworker dispatching service related activities, etc.

- 12 -

4.

Description of nature and amounts of differences between reportable segment total andconsolidated financial statements(Millions of yen)
For the fiscal year
For the fiscal year
Net sales
ended May 31, 2018
ended May 31, 2019

Reportable segment total

42,536

41,209

Sales under the Other category

717

605

Inter-segment elimination

(726)

(642)

Net sales in consolidated financial statements

42,527

41,172(Millions of yen)
For the fiscal year
ended May 31, 2019

For the fiscal year
ended May 31, 2018

ProfitReportable segment total

3,169

3,367

Profit under the Other category

41

34

Inter-segment elimination

1(0)Companywide expenses(2,845)(2,842)366

557

Operating income in consolidated financial
statements(Note)

Companywide expenses are primarily selling, general and administrative expenses not belonging
to any reportable segment.
(Millions of yen)
For the fiscal year
For the fiscal year
Assetsended May 31, 2018
ended May 31, 2019

Reportable segment total

39,54835,727

Assets under the Other category

596

572

Inter-segment elimination

(781)

(748)

Companywide assets

23,92822,450Total assets in consolidated financial statements

63,29158,001(Note)

Companywide assets are primarily assets managed by the head office and not belonging to any
reportable segment.
(Millions of yen)Amount inReportableconsolidated
Other
Adjustments
segment total
financialstatements
Other items
For the fiscal year For the fiscal year For the fiscal year For the fiscal year
ended May 31,
ended May 31,
ended May 31,
ended May 31,

Depreciation andamortization
Increase inproperty, plant andequipment andintangible assets

2018

2019

2018

2019

962

1,502

1

4,614

1,071

—

- 13 -

2018

2019

2018

2019

1

273

270

1,237

1,774

13

158

5

4,772

1,090

(Significant subsequent events)
Not applicable.

- 14 -4.

Other(1) Production, orders received and sales(a) Production

Segment by business type

For the fiscal year ended
May 31, 2018
(June 1, 2017 to May 31, 2018)
Amount(Millions of yen)

For the fiscal year ended
May 31, 2019
(June 1, 2018 to May 31, 2019)

Proportion(%)

Amount(Millions of yen)

Proportion(%)

Transportation Systems

27,59865.4

26,825

67.1

Industrial Systems

11,88328.2

11,685

29.2

Information Equipment
Systems

2,714

6.4

1,496

3.7

Other

—

—

—

—

Total

42,195100.0

40,008100.0(Note)

1.
2.

The amounts are based on sales price.
The above figures do not include consumption tax, etc.

(b) Orders received

Segment by business type

For the fiscal year ended
May 31, 2018
(June 1, 2017 to May 31, 2018)

For the fiscal year ended
May 31, 2019
(June 1, 2018 to May 31, 2019)

Order amount(Millions of yen)Backlog(Millions of yen)Order amount(Millions of yen)Backlog(Millions of yen)Transportation Systems

25,86623,75326,08022,599Industrial Systems

11,3096,690

12,833

7,184

Information Equipment
Systems

2,416

528

1,756

700

Other

6

—

13

—

Total

39,59930,972

40,68430,483(Note)

1.
2.

The amounts are based on sales price.
The above figures do not include consumption tax, etc.

- 15 -

(c) Sales

Segment by business type

For the fiscal year ended
May 31, 2018
(June 1, 2017 to May 31, 2018)
Amount(Millions of yen)

Proportion(%)

For the fiscal year ended
May 31, 2019
(June 1, 2018 to May 31, 2019)
Amount(Millions of yen)

Proportion(%)

Transportation Systems

27,94965.7

27,235

66.1

Industrial Systems

11,76927.7

12,33930.0

Information Equipment
Systems

2,801

6.6

1,583

3.8

Other

6

0.0

13

0.0

Total

42,527100.0

41,172100.0(Note)

1.
2.

The amounts are based on sales price.
The above figures do not include consumption tax, etc.

(2) Personnel changes of directors and audit & supervisory board members
Please refer to the “notice regarding personnel changes of directors and audit & supervisory board members.”- 16 -