Financial Results for the Second Quarter Ended April 30, 2024
[Japan GAAP] (Consolidated)
Date:

June 12, 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 & Corporate Planning Dept.
Tel: (03) 3442-5127

Date to report Quarterly Consolidated Financial Statement: June 14, 2024
Date for Dividend Payment:

July 8, 2024

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 Second Quarter Ended April 30, 2024
(1) Results of Operation (Consolidated)

Quarter Ended April 30, 2024
Quarter Ended April 30, 2023

Quarter Ended April 30, 2024
Quarter Ended April 30, 2023
(Note) Comprehensive income(Percent: Change from the same quarter of the previous year)
Net Sales
Operating Income
Ordinary Income
Millions ofMillions ofMillions of
Yen
Percent
Yen
Percent
Yen
Percent
26,580
10.0
2,958
43.4
3,007
44.9
24,155
9.9
2,062
14.5
2,075
10.4

Net Income Attributable to
Owners of the Parent
Millions of
Yen
Percent
2,138
51.0
1,416
-11.3

Net Income per Share

Fully Diluted Quarterly
Net Income per ShareYen
214.31141.91

Yen-

Second Quarter ended April 30, 2024: 2,306 million yen (85.9%) Second Quarter ended April 30, 2023: 1,240 million yen (-29.6%)(2) Financial Condition (Consolidated)

Quarter Ended April 30, 2024
Year Ended October 31, 2023

Total Assets (A)(Millions of Yen)
50,90549,007

Net Assets (B)(Millions of Yen)
38,44036,832

Net Assets Ratio(B) / (A) (Percent)
75.5
75.2

(Reference) Net assets
Second Quarter ended April 30, 2024: 38,440 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)First
Quarter-

Annual Dividend (Yen)InterimThird
End ofTerm
Quarter
Fiscal Year
40.00
70.00
00
63.
63.00

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

Annual110.00126.00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 Year52,780
6.3
4,540
12.2
4,600
11.8
Net Income Attributable to Net Income per ShareOwners of the Parent(Millions of Yen) (Percent)
Yen
Full Business Year
3,130
14.5
313.68(Note) Revisions since the most recently released earnings forecast: None
Notes(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) Change 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 April 30, 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 April 30, 2024: 554,940 shares

At October 31, 2023: 554,940 shares

3) Number of average shares (accumulated quarterly total)
At April 30, 2024: 9,978,260 shares

At April 30, 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 4, (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 ..............................................................................................................................4(3) Analysis of Future Forecast on Quarterly Consolidated Earnings Forecast .......................................................4
2. Quarterly Consolidated Financial Statements and Notes ...............................................................................................5(1) Quarterly Consolidated Balance Sheet ....................................................................................................5(2) Quarterly Consolidated Statement of Income & Quarterly Consolidated Statement of Comprehensive
Income ......................................................................................................................................7
Quarterly Consolidated Statement of Income ..............................................................................................7
Quarterly Consolidated Statement of Comprehensive Income .....................................................................8(3) Quarterly Consolidated Statement of Cash Flows ..............................................................................................9(4) Notes on Quarterly Consolidated Financial Statements ...................................................................................11(Note for premise of going concern) ....................................................................................................11(Notes for significant changes in shareholder’s equity) ......................................................................................11(Changes in presentation method) .................................................................................................11(Segment information) ............................................................................................................................................121

1. Qualitative Information on Quarterly Consolidated Operating Results(1) Analysis of Operating Results
During the second quarter of the current consolidated fiscal year, Japan’s economy showed negative growth at the
beginning of this period against the backdrop of stagnant personal consumption, and depressed capital investment
and exports. On the other hand, overseas, the U.S. economy remained strong despite its lower growth rate, while theChinese economy showed the slow pace of recovery, and the European economy continued to show deceleration in
growth rate.
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 second quarter were 26,580 million yen, up 10.0%
from the same period of a year earlier, reflecting an increase in net sales for both the Machinery & Equipment Businessand the Chemical Products Business. With respect to earnings, operating income was 2,958 million yen, up 43.4%
from the same period of a year earlier because of higher profits in both Businesses, while ordinary income increased
44.9% year on year to 3,007 million yen. Net income attributable to owners of the parent increased 51.0% year on
year to 2,138 million yen.
Operating results by segment were as follows.
(Machinery & Equipment Business)
In the Machinery & Equipment Business, net sales for the consolidated second quarter under review were 7,302 million
yen, up 25.9% from the same period of a year earlier, reflecting growth in net sales of equipment and construction works
and components and repair services, despite sluggish growth in net sales of machinery for domestic public sector
demand, and in addition, substantial growth in net sales for domestic private sector demand as a whole, and in net salesof components and repair services for overseas markets which carried over from the previous fiscal year.
(Millions of Yen)
Product classification

Machinery

Equipment andconstruction
works

Components
and repair
services

TOTAL

April, 2023

343

422

1,791

2,556

April, 2024

231

748

2,104

3,085

Difference

-111

326

313

528

April, 2023

219

2

975

1,197

April, 2024

432

300

1,017

1,750

Difference

213

297

41

552

April, 2023

915

87

1,041

2,043

Overseas

April, 2024

967

0

1,499

2,466

markets

Difference

52

-86

458

423

April, 2023

1,478

512

3,807

5,798

April, 2024

1,632

1,049

4,620

7,302

Difference

154

537

813

1,504

Public sector

Private sector

TOTAL

With respect to earnings, operating income was 1,179 million yen, up 259.6% from the same period of a year earlier,mainly reflecting growth in net sales of highly profitable components and repair services.
2

(Chemical Products Business)
In the Chemical Products Business, net sales for the consolidated second quarter under review were 19,277 million
yen, up 5.0% 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 building and fireproof in industrial materials
sector, materials mainly for building and motor vehicles in mineral products sector, and materials for coating applications
in chemical products sector, whereas net sales of synthetic resin related products in general and materials forsemiconductor assembling devices in electronic materials sector were sluggish.
(Millions of Yen)
April, 2023

April, 2024

Difference

Synthetic resin sector

2,582

2,401

-180

Industrial materials sector

2,983

3,225

242

Mineral products sector

2,897

3,178

281

Chemical products sector

4,224

4,494

270

Advanced materials sector

3,016

3,421

404

Electronic materials sector

2,518

2,427

-91

134

128

-5

18,357

19,277920

Other products (foreign liquor)
Total

With respect to earnings during the period, operating income was 1,779 million yen, up 2.5% from the same period ofa year earlier, reflecting strong sales.

3(2) Analysis of Financial Condition[1] Assets, Liabilities, and Net Assets
Assets at the end of the consolidated second quarter under review were 50,905 million yen, increased by 1,898 million
yen from the end of the previous consolidated fiscal year. This reflected an increase in cash and deposits, andmerchandise and finished goods, despite a decrease in notes, accounts receivable-trade and contract assets, andraw materials and supplies.
Liabilities were 12,464 million yen, increased by 290 million yen from the end of the previous consolidated fiscal year,
because of an increase in notes, accounts payable-trade and electronically recorded monetary debt, despite adecrease in provision for bonuses and accounts payable-others.
Net assets stood at 38,440 million yen, increased by 1,607 million from the end of the previous consolidated fiscal year.
This mainly reflected an increase in retained earnings recorded under quarterly net income attributable to owners of
the parent.
As a result of the above changes, the equity ratio at the end of the consolidated second quarter under review
increased 0.3 point to 75.5, from the end of the previous consolidated fiscal year.
[2] Cash Flow Status
Cash and cash equivalents (“cash”) at the end of the consolidated second quarter under review decreased by 2,738
million yen from the end of the previous consolidated fiscal year to 10,780 million yen, reflecting cash flow used byinvestment activities and financing activities respectively, despite cash flow provided by operating activities. The
status of each consolidated cash flow and their factors during the second quarter are as follows:(Net Cash Provided by (Used in) Operating Activities)
Net cash provided by operating activities during the consolidated second quarter under review totaled 1,912 million
yen. This reflected an increase in income before income taxes and minority interests of 3,092 million yen, and notes
and accounts payable-trade of 623 million yen, despite an increase in inventory of 537 million yen, and a decreasein provision for bonuses of 453 million yen. Net cash provided by operating activities came to 1,620 million yen
compared to 292 million yen provided during the consolidated second quarter of the previous fiscal year.
(Net Cash Provided by (Used in) Investing Activities)
Net cash used in investing activities during the consolidated second quarter under review came to 4,014 million yen.
This reflected purchase of time deposits of 4,000 million yen, despite proceeds from sales of investment securities of
89 million yen. Net cash used in investing activities increased to 3,723 million yen compared to 291 million yen usedduring the consolidated second quarter of the previous fiscal year.
(Net Cash Provided by (Used in) Financing Activities)
Net cash used in financing activities during the consolidated second quarter under review came to 698 million yen.
This reflected the payment of cash dividends of 698 million yen. Net cash used in financing activities increased to 419
million yen compared to 279 million yen used during the consolidated second quarter of the previous fiscal year.
(3) Analysis of Future Forecast on Consolidated Earnings Forecast
There are no revisions to the consolidated earnings forecast figures for the fiscal year ending October 31, 2024 thatwere announced in the “Notice of Revision of Earnings Forecast” released on June 7, 2024.

4

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

Current Assets
13,519,519

14,780,810

13,053,566

12,814,856

Electronically Recorded Monetary Claims

4,534,946

4,739,232

Merchandise and Finished Goods

5,023,516

5,619,922

Work in Process

1,413,836

1,447,612

Raw Materials and Supplies

1,118,239

1,057,097

Others442,065

449,185

Allowance for Doubtful Accounts
Total Current Assets-75,966-76,841

39,029,723

40,831,876

5,142,178

5,151,957

Accumulated Depreciation-2,361,073-2,433,639

Buildings and Structures, Net

2,781,104

2,718,318

Machinery, Equipment and Vehicles

4,276,421

4,313,485-3,947,522-4,007,277

328,898

306,208Land

2,304,322

2,304,436

Others1,173,898

1,204,724-1,093,060-1,110,683

80,837

94,0405,495,162

5,423,004

135,706

120,420

Investment Securities

1,461,804

1,618,635

Guarantee Deposits

555,604

557,596

2,235,326

2,263,950

Deferred Tax Assets

11,981

10,449Others103,258

101,118

Allowance for Doubtful Accounts-21,551-21,650

Total Investments and Other Assets

4,346,423

4,530,101

Total Noncurrent Assets

9,977,293

10,073,526

Total Assets

49,007,016

50,905,402

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, Net
Total Property, Plant and Equipment
Intangible Assets
Investments and Other Assets

Net Defined Benefit Assets5

(Thousands of Yen)
End of Previous YearEnd of Second Quarter(October. 31, 2023)(April 31, 2024)

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

4,348,081

4,711,602

Electronically Recorded Monetary Debt

2,286,828

2,570,063

Accounts Payable-Others

808,811

737,928

Income Taxes Payable

731,645879,433

Contract Liabilities

483,376

578,532

1,791,344

1,338,549

Provision for Directors' Bonuses

110,816

65,109Allowance for Product Warranty

190,085

192,806

Others608,366

378,120

11,359,356

11,452,146

86,23990,522

728,469

921,826

Total Noncurrent Liabilities

814,709

1,012,349

Total Liabilities

12,174,065

12,464,495

Capital Stock

1,061,210

1,061,210

Capital Surplus

1,483,410

1,483,410

Retained Earnings

32,937,306

34,377,234

Treasury Stock-364,148-364,148

Total Shareholders’ Equity

35,117,778

36,557,705

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

505,132

637,415

3,928

20,677

Foreign Currency Translation Adjustment

904,168

944,426

Total Adjustment on Net Defined Benefit

301,944

280,681

Total Accumulated Other Comprehensive Income

1,715,173

1,883,200

Total Net Assets

36,832,951

38,440,906

Total Liabilities and Net Assets

49,007,016

50,905,402

Provision for Bonuses

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

Net Assets
Shareholders’ Equity6(2) Quarterly Consolidated Statement of Income & Quarterly Consolidated Statement of Comprehensive
IncomeQuarterly Consolidated Statement of Income (Second Quarter)(Thousands of Yen)
Second Quarter Ended
April 30, 2023

Second Quarter Ended

Net Sales

24,155.024

April 30, 2024
26,580,326

Cost of Sales

17,960,161

19,228,655

6,194,863

7,351,670

4,131,874

4,393,460

2,062,988

2,958,210

Interest Income

7,105

10,355

Dividends Income

20,83823,071

Rent Income

4,015

4,015

－

11,48424,850

10,58556,80959,510Interest Expenses

360

368

Commission Paid

7,487

7,495

Guarantee Commission

480

1,272

Foreign Exchange Loss

35,068

－

903

941

Total Non-Operating Expenses

44,30010,078

Ordinary Income

2,075,497

3,007,642

11,90757,706－27,506

Total Extraordinary Profits

11,907

85,213

Income before Income Taxes and Minority Interests

2,087,405

3,092,855

Income Taxes-Current

489,039

817,762

Income Taxes-Deferred

182,310

136,687

Total Income Taxes

671,350

954,449

Net Income

1,416,054

2,138,405

Net Income Attributable to Owners of the Parent

1,416,054

2,138,405

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
Gain on Sales of Shares of Affiliated Companies

7

Quarterly Consolidated Statement of Comprehensive Income (Second Quarter)(Thousands of Yen)
Second Quarter Ended

Second Quarter Ended

April 30, 2023

April 30, 2024

1,416,054

2,138,405

Valuation Difference on Available-for-sale Securities

74,020132,283

Deferred Gains or Losses (-) on Hedges-4,563

16,749Foreign Currency Translation Adjustment-227,420

40,258Net Defined Benefit-17,315-21,263

Total Other Comprehensive Income-175,278

168,027

1,240,776

2,306,433

1,240,776

2,306,433

Net Income
Other Comprehensive Income

Comprehensive Income(Breakdown)Comprehensive Income Attributable to Owners of the
Parent8

(3) Quarterly Consolidated Statement of Cash Flows(Thousands of Yen)
Second Quarter Ended

Second Quarter Ended

April 30, 2023

April 30, 2024

Net Cash Provided by (Used in) Operating Activities
Income before Income Taxes

2,087,405

3,092,855

Depreciation and Amortization

187,919

169,766

Increase (Decrease) in Provision for Bonuses(359,308)(453,051)

Increase (Decrease) in Provision for Directors' Bonuses(51,223)(45,707)(54,872)

2,721

2,555

4,282

(27,558)(28,624)360

368

Foreign Exchange Loss (Gain)

101,572(60,177)

Loss on Sales of Investment Securities (Gain)(11,907)(57,706)－(27,506)(1,052,373)

66,569

Increase (Decrease) in Allowance for Product Warranty
Increase (Decrease) in Provision for Directors' Retirement Benefits
Increase (Decrease) in Net Defined Benefit Liability
Decrease (Increase) in Net Defined Benefit Asset
Increase (Decrease) in Allowance for Doubtful Accounts(5,460)(8,772)(27,944)

Interests and Dividends Income
Interest Expenses

Loss on Sales of Shares of Affiliated Companies (Gain)
Decrease (Increase) in Notes, Accounts Receivable-Tradeand Contract Assets－

105(33,426)(563,362)(537,122)

58,844

623,602

Increase (Decrease) in Accounts Payable-Others

49,638(18,240)

Increase (Decrease) in Contract Liabilities

601,189

93,426

Increase (Decrease) in Consumption Taxes Payable

344,430(223,902)

Others, Net(53,045)(31,762)

Decrease (Increase) in Inventories
Decrease (Increase) in Advance Payment
Increase (Decrease) in Notes and Accounts Payable-Trade

Sub TotalInterests and Dividends Income Received
Interest Expenses Paid
Income Taxes Returned (Paid)
Net Cash Provided by (Used in) Operating Activities

9(224,121)

18,211

993,964

2,554,683

28,12434,861

(367)

(376)
(676,281)

292,160

1,912,886(729,560)

(Thousands of Yen)
Second Quarter Ended

Second Quarter Ended

April 30, 2023

April 30, 2024

Net Cash Provided by (Used in) Investment Activities
Disbursement to Time Deposits
Withdrawal from Time Deposits
Purchase of Property, Plant and Equipment
Purchase of Intangible Fixed Assets(4,200,000)(4,000,000)(35,704)(35,213)4,000,000－(71,134)(98,609)21,21389,880－31,506(5,886)

(300)

(803)

Purchase of Investment Securities
Proceeds from Sales of Investment Securities
Proceeds from Sales of Share of Affiliated Companies
Payments of Loans Receivable

(528)

360

3,768

Guarantee Deposits (Increase)747(1,474)

Others, Net(5)(3,664)

Collection of Loans Receivable

Net Cash Provided by (Used in) Investment Activities
Net Cash Provided by (Used in) Financing Activities
Cash Dividends Paid
Net Cash Provided by (Used in) Financing Activities
Cash and Cash Equivalents
Effect of Exchange Rate Change on Cash and Cash
Equivalents(291,214)(4,014,634)(279,391)(698,478)(279,391)(698,478)(124,637)

61,516Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Period(403,081)(2,738,709)

10,732,583

13,519,519

Cash and Cash Equivalents at End of This Quarter

10,329,501

10,780,810

10

(4) 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)(Notes to Quarterly Consolidated Statements of Income)Since guarantee commission, which has been included in others under non-operating expenses in the second quarterof the 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 second quarter of the previous consolidated fiscal year, we havereclassified the 1,383,000 yen shown in others under non-operating expenses as 480,000 yen in guarantee commission
and 903, 000 yen in others.

11

(Segment information, etc.)[Segment information]
Second Quarter Ended April 30, 2023
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

5,798,007

Total

Grand Total

18,357,017

24,155,024

24,155,024

-

-

-

-

Total

5,798,007

18,357,017

24,155,024

24,155,024

Segment Profit

327,858

1,735,130

2,062,988

2,062,988

Net Sales
Net Sales to UnaffiliatedCustomers
Internal Net Sales among
Segments or AmountTransferred(Note) The total amount of segment profit is identical to the operating income reported on the Quarterly Consolidated Statements of Income.

Second Quarter Ended April 30, 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

7,302,491

Total

Grand Total

19,277,835

26,580,326

26,580,326

-

-

-

-

Total

7,302,491

19,277,835

26,580,326

26,580,326

Segment Profit

1,179,081

1,779,129

2,958,210

2,958,210

Net Sales
Net Sales to UnaffiliatedCustomers
Internal Net Sales among
Segments or AmountTransferred(Note) The total amount of segment profit is identical to the operating income reported on the Quarterly Consolidated Statements of Income.

12