Financial Results for the First Quarter Ended January 31, 2024
[Japan GAAP] (Consolidated)
Date:

March 14, 2024

Company Name and Code:

Tomoe Engineering Co., Ltd. and Subsidiaries - 6309
(URL: http://www.tomo-e.co.jp/index_e.html)

Stock exchange listing:Prime Market, Tokyo Stock Exchange

Head Office:5-15, Kitashinagawa 5-chome, Shinagawa-ku, Tokyo, Japan

President:

Akitomo Tamai

Investor Relations Contacts:

Kazuyuki Kitta, Director & Executive Officer, Accounting & Cooperate Planning Dept.
Tel: (03) 3442-5127

Date to report Quarterly Consolidated Financial Statement: March 15, 2024
Date for Dividend Payment:

Not applicable to this financial quarter

Preparation of Supplementary Explanatory Materials for Quarterly Operating Results: Prepared
Briefing Session for Quarterly Operating Results: Yes (for analysts and institutional investors)* Any fractional sums less than one million (or one thousand) yen are disregarded
1. Consolidated Financial Data for the First Quarter Ended January 31, 2024
(1) Results of Operation (Consolidated)

Quarter Ended January 31, 2024
Quarter Ended January 31, 2023

(Percent: Change from the same quarter of the previous year)
Net Sales
Operating Income
Ordinary Income
Millions ofMillions ofMillions ofYen
Percent
Yen
Percent
Yen
Percent
12,138
9.1
1,120
100.5
1,163
111.3
11,128
11.7
558
5.7
550
-1.6

Quarter Ended January 31, 2024
Quarter Ended January 31, 2023

Net Income Attributable toOwners of the Parent
Millions ofYen
Percent
807
106.8
390-43.4

Net Income per Share

Fully Diluted Quarterly
Net Income per Share

Yen
80.94
39.15

Yen-(Note) Comprehensive income
First Quarter ended January 31, 2024: 790 million yen (660.4%)

First Quarter ended January 31, 2023: 103 million yen (-85.3%)(2) Financial Condition (Consolidated)

Quarter Ended January 31, 2024
Year Ended October 31, 2023

Total Assets (A)(Millions of Yen)
47,74349,007

Net Assets (B)(Millions of Yen)
36,92436,832

Net Assets Ratio(B) / (A) (Percent)
77.3
75.2

(Reference) Net assets
First Quarter ended January 31, 2024: 36,924 million yen

Year Ended October 31, 2023: 36,832 million yen

2. Dividend Status(Record Date)
Year Ended October 31, 2023
Year Ending October 31, 2024
Year Ending October 31, 2024 (Prospect)FirstQuarter-InterimTerm
40.00

Annual Dividend (Yen)Third
End ofQuarter
Fiscal Year
70.00

60.00

(Note) Revisions since the most recently released dividend projection: None-60.00

Annual110.00
120.003. Forecast for Earnings for the Year Ending October 31, 2024 (Consolidated)(Percent change from the previous Full Business Year)Net Sales
Operating Income
Ordinary Income(Millions of Yen) (Percent) (Millions of Yen) (Percent) (Millions of Yen) (Percent)
Full Business Year51,800
4.4
4,180
3.3
4,200
2.1
Net Income Attributable to Net Income per ShareOwners of the Parent(Millions of Yen) (Percent)
Yen
Full Business Year
2,930
7.2
293.64(Note) Revisions since the most recently released earnings forecast: NoneNotes(1) Significant changes in subsidiaries during this period (changes in specific subsidiaries involving changes in thescope of consolidation): None
Number of new subsidiaries: __(Company names):
Number of eliminated subsidiaries: __(Company names):(2) Adoption of the specific accounting method to create quarterly consolidated financial statements: None
(3) Changes in accounting policies, accounting estimates, and retrospective restatements.
1) Changes in accounting policies due to revision of accounting standard: None
2) Other changes than the above 1): None
3) Change in accounting estimates: None
4) Retrospective restatements: None
(4) Number of outstanding shares (Common stock)1) Number of outstanding shares as of quarter-end and year-end (including treasury stocks)
At January 31, 2024: 10,533,200 shares

At October 31, 2023: 10,533,200 shares

2) Number of treasury stocks as of quarter-end and year-end
At January 31, 2024: 554,940 shares

At October 31, 2023: 554,940 shares3) Number of average shares (accumulated quarterly total)
At January 31, 2024: 9,978,260 shares

At January 31, 2023: 9,978,260 shares*The quarterly earnings report is exempt from the quarterly review by certified public accountant or audit firm.
*Explanations for appropriate use of the earnings forecast and other special instructions
The forward-looking statements such as a forecast of our financial results described herein are based on theinformation currently available to us and certain assumptions that we believe are reasonable. Actual results could
differ materially due to various factors.
Please refer to the Attachments on page 3, (3) [Analysis of Future Forecast on Quarterly Consolidated Earnings
Forecast] of 1. [Qualitative Information on Quarterly Consolidated Operating Results] for the operating results
forecast.

Table of Contents (Supporting Data)
1. Qualitative Information on Quarterly Consolidated Operating Results...................................................................2(1) Analysis of Operating Results................................................................................................................................2(2) Analysis of Financial Condition..............................................................................................................................3(3) Analysis of Future Forecast on Quarterly Consolidated Earnings Forecast.......................................................3
2. Quarterly Consolidated Financial Statements and Notes................................................................................................4(1) Quarterly Consolidated Balance Sheet................................................................................................4(2) Quarterly Consolidated Statement of Income & Quarterly Consolidated Statement of Comprehensive
Income.......................................................................................................................................................................6Quarterly Consolidated Statement of Income.....................................................................................................6Quarterly Consolidated Statement of Comprehensive Income.........................................................................7(3) Notes on Quarterly Consolidated Financial Statements.......................................................................................8(Note for premise of going concern) .................................................................................................8(Notes for significant changes in shareholder’s equity) .......................................................................................8(Changes in presentation method) .................................................................................................8(Segment information) ......................................................................................................................... 81

1. Qualitative Information on Quarterly Consolidated Operating Results(1) Analysis of Operating Results
During the first quarter of the current consolidated fiscal year, the growth rate of Japan’s economy leveled off on
sluggish personal consumption, despite growth in capital investment and exports. On the other hand, overseas,
the Chinese economy remained weak, and the European economy continued to stagnate, whereas the U.S.
economy remained brisk.
Given these circumstances, the Tomoe Engineering Group leverages its global business base and network, versatileknowledge and diversity to create value and achieve sustainable growth. At the end of last year, the Group has
revised the target upward for the fiscal year ending October 31, 2025, the final year of the current Mid-term Business
Plan "For Sustainable Future (November 2022 - October 2025), and is undertaking activities to further enhance its
corporate value.
Net sales for the Tomoe Engineering Group for the consolidated first quarter were 12,138 million yen, up 9.1% fromthe same period of a year earlier, reflecting increase in net sales for both the Machinery & Equipment Business andthe Chemical Products Business. With respect to earnings, operating income was 1,120 million yen, up 100.5%
from the same period of a year earlier because of higher profits in both Businesses, while ordinary income increased
111.3% year on year to 1,163 million yen. Net income attributable to owners of the parent increased 106.8% year
on year to 807 million yen.
Operating results by respective segment were as follows.
(Machinery & Equipment Business)
In the Machinery & Equipment Business, net sales for the consolidated first quarter under review were 2,467 million yen,
up 35.9% from the same period of a year earlier, reflecting growth in net sales of components and repair services, andnet sales for domestic public sector demand as a whole, and in addition, net sales of machinery, components and repair
services for domestic private sector demand remained steady, despite a decrease in net sales of machinery for overseas
markets.
(Millions of Yen)
Product classification

January, 2023

19

Equipment
andconstruction
work
150

January, 2024

53

284

497

836

Difference

34

134

79

247

January, 2023

132

0362

494

January, 2024

231

0403

635

Difference

99

041

141

January, 2023

285

0446

732

Overseas

January, 2024

184

0810

995

markets

Difference

-100

0363

262

January, 2023

436

150

1,227

1,815

January, 2024

470

284

1,712

2,467

Difference

33

134

484

651

Public sector

Private sector

TOTAL

MachineryComponents
and repair
services
418

588

TOTAL

With respect to earnings, operating income turned to a profit of 224 million yen from a loss of 301 million yen in thesame period of a year earlier, reflecting highly profitable components and repair services mainly for overseas markets.
2

(Chemical Products Business)
In the Chemical Products Business, net sales for the consolidated first quarter under review were 9,671 million yen,up 3.9% from the same period of a year earlier. This reflected growth in net sales of materials for semiconductor
manufacturing devices in advanced materials sector, materials mainly for motor vehicles and building in the mineralproducts sector, and materials for coating applications in the chemical products sector, whereas net sales of thesynthetic resin related products in general and materials for semiconductor assembling devices in the electronicmaterials sector were sluggish.
(Millions of Yen)
January, 2023

January, 2024

Difference

Synthetic resin sector

1,373

1,185-188

Industrial materials sector

1,437

1,528

91

Mineral products sector

1,462

1,690

228

Chemical products sector

2,123

2,251

127

Advanced materials sector1,407

1,674

267

Electronic materials sector

1,415

1,246-168

9394

19,312

9,671

358

Other products (foreign liquor)
Total

With respect to earnings during the period, operating income increased 4.1% up from the same period of a year
earlier to 895 million yen because of favorable growth in net sales.
(2) Analysis of Financial Condition
Current assets at the end of the consolidated first quarter under review were 47,743 million yen, down 2.6% or 1,263
million yen from the balance at the end of the previous consolidated fiscal year. This mainly reflected a decrease in
cash and deposits, whereas work in process and electronically recorded monetary claims increased.
Liabilities were 10,818 million yen, down 11.1% or 1,355 million yen from the balance at the end of the previous
consolidated fiscal year, reflecting a decrease in provision for bonuses and income taxes payable, despite higher
contract liabilities.
Net assets stood at 36,924 million yen, down 0.2% or 91 million yen from the balance at the end of the previous
consolidated fiscal year. This mainly reflected an increase in valuation difference on available-for-sale securities, despitea decrease in foreign currency translation adjustment.
As a result of the above changes, the equity ratio at the end of the consolidated first quarter under review
increased by 2.1 from the balance at the end of the previous consolidated fiscal year to 77.3%.
(3) Analysis of Future Forecast on Quarterly Consolidated Earnings Forecast
There are no revisions to the consolidated earnings forecast figures for the fiscal year ending in October 31, 2024
that were announced in the “Financial Results for the Fiscal Year Ended October 31, 2023 [Japan GAAP](Consolidated)” released on December 14, 2023.

3

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet (First Quarter)(Thousands of Yen)
End of Previous YearEnd of First Quarter(October. 31, 2023)(January 31, 2024)

AssetsCurrent Assets

13,519,519

11,505,139

13,053,566

12,690,501

Electronically Recorded Monetary Claims

4,534,946

4,863,047

Merchandise and Finished Goods

5,023,516

5,121,168

Work in Process

1,413,836

1,870,405

Raw Materials and Supplies

1,118,239

1,252,721

Others442,065

423,334

Allowance for Doubtful Accounts
Total Current Assets-75,966-72,109

39,029,723

37,654,209

5,142,178

5,073,775

Accumulated Depreciation-2,361,073-2,331,303

Buildings and Structures, Net

2,781,104

2,742,471

Machinery, Equipment and Vehicles

4,276,421

4,372,674-3,947,522-4,068,047

328,898

304,626Land

2,304,322

2,303,816

Others1,173,898

1,195,643-1,093,060-1,099,391

80,837

96,251

5,495,162

5,447,166

135,706

125,532

Investment Securities

1,461,804

1,628,124

Guarantee Deposits

555,604

553,783

2,235,326

2,249,408

Deferred Tax Assets

11,981

7,026

Others103,258

100,025

Allowance for Doubtful Accounts-21,551-21,550

Total Investments and Other Assets

4,346,423

4,516,817

Total Noncurrent Assets

9,977,293

10,089,517

Total Assets

49,007,016

47,743,726

Cash and Deposits
Notes, Accounts Receivable-Trade and Contract
AssetsNoncurrent Assets
Property, Plant and Equipment
Buildings and Structures

Accumulated Depreciation
Machinery, Equipment and Vehicles, Net

Accumulated Depreciation
Others, NetTotal Property, Plant and Equipment
Intangible Assets
Investments and Other Assets

Net Defined Benefit Assets4

(Thousands of Yen)
End of Previous YearEnd of First Quarter(October. 31, 2023)(January 31, 2024)

Liabilities and Net Assets
Liabilities
Current Liabilities
Notes and Accounts Payable-Trade

4,348,081

4,205,359

Electronically Recorded Monetary Debt

2,286,828

2,377,441

Accounts Payable-Others

808,811

768,999

Income Taxes Payable

731,645

60,572Contract Liabilities

483,376

933,843

1,791,344

658,390

Provision for Directors' Bonuses

110,816

30,900Allowance for Product Warranty

190,085

160,886

Others608,366

426,512

11,359,356

9,622,906

86,23987,538728,469

1,108,361

Total Noncurrent Liabilities

814,709

1,195,900

Total Liabilities

12,174,065

10,818,807

Capital Stock

1,061,210

1,061,210

Capital Surplus

1,483,410

1,483,410

Retained Earnings

32,937,306

33,046,505-364,148-364,148

Total Shareholders’ Equity

35,117,778

35,226,976

Accumulated Other Comprehensive Income
Valuation Difference on Available-for-Sale
Securities
Deferred Gains or Losses on Hedges

505,132

622,739

3,928

10,010Foreign Currency Translation Adjustment

904,168

773,879

Total Adjustment on Net Defined Benefit

301,944

291,313

Total Accumulated Other Comprehensive Income

1,715,173

1,697,942

Total Net Assets

36,832,951

36,924,919

Total Liabilities and Net Assets

49,007,016

47,743,726

Provision for Bonuses

Total Current Liabilities
Noncurrent Liabilities
Net Defined Benefit Liabilities
Deferred Tax Liabilities

Net Assets
Shareholders’ Equity

Treasury Stock5(2) Quarterly Consolidated Statement of Income & Quarterly Consolidated Statement of Comprehensive
IncomeQuarterly Consolidated Statement of Income (First Quarter)(Thousands of Yen)First Quarter Ended

First Quarter Ended

January 31, 2023
11,128,301

January 31, 2024
12,138,823

8,552,576

8,850,144

2,575,724

3,288,678

2,017,012

2,168,345

558,7121,120,333

Interest Income

3,443

8,046

Dividends Income

16,983

19,075

Rent Income

2,007

2,007

－

12,721

7,800

3,479

30,23545,330Interest Expenses

213

186

Commission Paid756

756

Guarantee Commission

306

750

Foreign Exchange Loss

36,834－186

274

Total Non-Operating Expenses

38,297

1,966

Ordinary Income

550,650

1,163,696

242

3,334

242

3,334

550,893

1,167,031

Income Taxes-Current

9,628

24,170

Income Taxes-Deferred

150,649

335,183

Total Income Taxes

160,277

359,354

Net Income

390,615807,677

390,615807,677

Net Sales
Cost of Sales
Gross Profit
Selling, General and Administrative Expenses
Operating Income
Non-Operating Income

Foreign Exchange Gain
OthersTotal Non-Operating Income
Non-Operating Expenses

OthersExtraordinary Profits
Profit on Sales of Investment Securities
Total Extraordinary Profits
Income before Income Taxes and Minority Interests

Net Income Attributable toOwners of the Parent6Quarterly Consolidated Statement of Comprehensive Income (First Quarter)(Thousands of Yen)First Quarter Ended

First Quarter Ended

January 31, 2023
390,615January 31, 2024
807,677

Valuation Difference on Available-for-sale Securities

25,598

117,606

Deferred Gains or Losses (-) on Hedges-29,638

6,081

Foreign Currency Translation Adjustment-273,960-130,288-8,657-10,631-286,658-17,231103,957

790,445

103,957

790,445Net Income
Other Comprehensive Income

Net Defined Benefit
Total Other Comprehensive Income
Comprehensive Income(Breakdown)Comprehensive Income Attributable to Owners of theParent7

(3) Notes on Quarterly Consolidated Financial Statements(Note for premise of going concern)
There are no pertinent matters to report.
(Notes for significant changes in shareholder’s equity)
There are no pertinent matters to report.
(Changes in presentation method)(Quarterly consolidated statement of income)Since guarantee commission, which has been included in others under non-operating expenses in the first quarter ofthe previous consolidated fiscal year increased in quantitative materiality, we present it separately beginning from thefirst quarter of the current consolidated fiscal year under review. To reflect this change of presentation method, in the
Quarterly Consolidated Statements of Income for the first quarter of the previous consolidated fiscal year, we havereclassified the 493,000 yen shown in others under non-operating expenses as 306,000 yen in guarantee
commission and 186, 000 yen in others.
(Segment information, etc.)[Segment information]
First Quarter Ended January 31, 2023
Information Pertaining to the Amount of Net Sales, Profit or Loss of Each Reporting Segment(Thousands of Yen)
Reported Segment
Machinery & Equipment
BusinessChemical ProductsBusinessNet Sales
Net Sales to UnaffiliatedCustomers
Internal Net Sales among
Segments or AmountTransferred

1,815,614

9,312,686

11,128,301

11,128,301----Total

1,815,614

9,312,686

11,128,301

11,128,301

Segment Profit or Loss (-)-301,544

860,257

558,712558,712

Total

Grand Total(Note) The total amount of segment profit is identical to the operating income reported on the Quarterly Consolidated Statements of Income.

First Quarter Ended January 31, 2024
Information Pertaining to the Amount of Net Sales, Profit or Loss of Each Reporting Segment(Thousands of Yen)
Reported Segment
Machinery & Equipment
Business

Chemical Products
Business

2,467,431

9,671,391

12,138,823

12,138,823

----

Total

2,467,431

9,671,391

12,138,823

12,138,823

Segment Profit or Loss (-)

224,688895,644

1,120,333

1,120,333

Net Sales
Net Sales to UnaffiliatedCustomers
Internal Net Sales among
Segments or AmountTransferred

Total

Grand Total(Note) The total amount of segment profit is identical to the operating income reported on the Quarterly Consolidated Statements of Income.

8