October 10, 2014

Summary of Consolidated Business Results for the First Quarter of Fiscal 2014
For the fiscal year ending May 31, 2015
Toyo Denki Seizo K.K.
Stock Code: 6505
Representative:
Inquiries:

Stock Exchange: 1st Section of the Tokyo Stock Exchange
URL http://www.toyodenki.co.jp
Kenzo Terashima, President
Yoshifumi Otsubo, Operating Officer and General Manager, Management Planning
Division
TEL +81-3-5202-8122
Scheduled date of submission of quarterly financial report:
October 14, 2014
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 2014
(June 1, 2014 to August 31, 2014)(1) Consolidated Operating Results(In millions of yen, except where noted; percentage figures show year-on-year increase or decrease.)

Net Sales
7,197
6.9%
6,734
10.0%

Operating Income
Ordinary Income
1Q Fiscal 2014
(192)
－
(109)
－
1Q Fiscal 2013
(56)
－
(80)
－
(Note) Comprehensive income: 1Q Fiscal 2014: 573 million yen [－%]
1Q Fiscal 2013: (394) million yen [－%]Net Income
per Share (Yen)

Diluted Net Income
per Share (Yen)(4.99)(4.90)－－

1Q Fiscal 2014
1Q Fiscal 2013

Net Income
(240)
－
(236)
－

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

Total Assets
As of August 31, 2014
As of May 31, 2014

45,91544,752

Net Assets
20,004
19,350Shareholders’ Equity
Ratio (%)
43.6
43.2

(Reference) Shareholders’ equity: As of August 31, 2014: 20,004 million yen
As of May 31, 2014: 19,350 million yen

2. Dividend Information
1Q

Annual Dividend (Yen)Interim
3Q
Fiscal Year-End
0.00
－
6.00

Fiscal 2013－
Fiscal 2014－
Fiscal 2014
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 2014 (June 1, 2014 to May 31, 2015)(In millions of yen, except where noted; percentage figures show year-on-year increase or decrease.)

Net Sales

Operating Income

Ordinary Income

First half
18,500 16.9%
600 181.2%
600 122.1%
Full year
40,000 14.4%
2,100
95.1%
2,100 102.7%(Note) Revisions to the most recently announced performance forecast: No

Net Income
350
1,200

505.0%
86.2%

Net Income
per Share
(Yen)
7.26
24.89

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, 2014: 48,675,000 shares
May 31, 2014: 48,675,000 shares(b) Number of shares of treasury stock as of the end of the period:
August 31, 2014: 476,930 shares
May 31, 2014: 474,527 shares(c) Average number of shares for the period (fiscal year-to-date):
1Q Fiscal 2014: 49,199,309 shares
1Q Fiscal 2013: 48,210,571 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.
Quarterly 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 ..................................................................................................................................... 10(1) The Status of Production, Orders, and Sales.................................................................................................. 10-1-

1. Qualitative Information regarding Quarterly Financial Results(1) Explanation of Consolidated Business Results
During the first quarter (June 1, 2014 to August 31, 2014) of fiscal 2014, the fiscal year ending May 31, 2015,
although a temporary slowdown in the economy in Japan was seen due to the decline in reaction to last-minutedemand accompanying the increase in the consumption tax rate, a recovery trend continued due to improvement in
the personal income environment and an upward trend in capital expenditure backed by the economic policies andmonetary easing policy of the current administration. Meanwhile, with regard to overseas, although the economy inEurope was sluggish, the recovery trend of the economy in the United States continued due to an improvement in
employment environment, and China also sustained stable growth amid decelerating growth rate, and therefore,
investment in infrastructure remained at a high level.
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 launched in July 2014.
The Toyo Denki Group’s performance in the first quarter of fiscal 2014, the first fiscal year of the plan, was asfollows.
Orders received increased 11.8% compared with the corresponding period of the previous fiscal year to 8,901
million yen. This overall result reflected a significant surge in orders received in the Transportation Systems
segment outside Japan despite a slight decrease in the Industrial Systems segment.
Net sales increased 6.9% year on year to 7,197 million yen. Despite a slight decrease in the Information
Equipment Systems segment, this result reflected a significant surge in the Transportation Systems segment outside
Japan as well as an increase in the Industrial Systems segment.
From a profit perspective, operating income fell by 135 million yen compared with the corresponding period of
the previous fiscal year and recorded a 192 million yen loss, mainly due to the prior recording of development
expenses and design expenses in the Transportation Systems segment. Ordinary income also fell by 28 million yen,recording a 109 million yen loss, and net income declined by 4 million yen to register a 240 million yen loss.
Looking at the overall nature and structure of the Group’s business activities, sales are generally concentrated in
the fourth quarter of each fiscal year. As a result, quarterly consolidated operating results are impacted by seasonal
factors.
Information by business segment is presented as follows.
Transportation Systems
While orders received were flat in Japan, there was a sharp upturn outside Japan. As a result, orders received
increased 25.3% compared with the corresponding period of the previous fiscal year to 5,749 million yen.
Although net sales in this segment decreased in Japan, there was a significant upturn outside Japan, totaling
4,725 million yen, a 7.2% increase from the corresponding period of the previous year. Segment profit declined by
41.1% compared with the corresponding period of the previous fiscal year to 317 million yen, which was primarily
attributable to the prior recording of development expenses and design expenses.
Industrial Systems
While orders received for infrastructure related were robust, those related to capital expenditure such as printing
equipment and processing equipment declined. In overall terms, orders received decreased 7.6% compared with thecorresponding period of the previous fiscal year to 2,924 million yen.
Net sales increased 7.0% year on year to 2,348 million yen as sales of testing equipment for automotive
development and processing equipment increased. Segment profit totaled 52 million yen, an increase of 120 million
yen compared with the corresponding period of the previous fiscal year due to effect of increased revenue andimproved profitability.
Information Equipment Systems
Orders received in this segment increased 8.4% to 225 million yen, primarily for railway station operating
equipment.
Net sales in this segment decreased 7.2% year on year to 121 million yen with a decline in sales of station
operating equipment. Segment profit was 13 million yen, an increase of 49 million yen compared with thecorresponding period of the previous fiscal year due to improved profitability.
-2-Note: Net sales data by business segment represents sales to third parties and is exclusive of inter-segment sales andtransfers.
(2) Explanation of Consolidated Financial Position
Total assets as of August 31, 2014 stood at 45,915 million yen, an increase of 1,162 million yen compared with theend of the previous fiscal year. Despite decreases in trade notes and accounts receivable of 1,977 million, theincrease in total assets was largely attributable to increases in cash and cash equivalents of 661 million yen,inventories of 1,452 million yen and investment securities of 1,214 million yen.
Total liabilities amounted to 25,910 million yen, an increase of 508 million yen compared with the previous
fiscal year end. Despite a 549 million yen decrease in net defined benefit liability, the increase in total liabilities
was largely attributable to an increase in borrowings of 1,135 million yen.
Net assets stood at 20,004 million yen, 654 million yen higher than the balance as of the previous fiscal year
end. Major movements were a 158 million yen decrease in retained earnings and a 782 million yen increase 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 2014” announced on July 10,
2014.

-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(Application of Accounting Standard for Retirement Benefits)
Provisions stated in Section 35 of the “Accounting Standard for Retirement Benefits” (ASBJ Statement No. 26 of
May 17, 2012; hereinafter referred to as the “Retirement Benefits Accounting Standard”) and Section 67 of the“Guidance on the Accounting Standard for Retirement Benefits” (ASBJ Guidance No. 25 of May 17, 2012;
hereinafter referred to as the “Guidance on Retirement Benefits”) have been applied from the first quarter of fiscal
2014. Along with this application, calculation methods for retirement benefit obligations and service cost have beenrevised. Furthermore, the method for determining the portion of projected benefit obligation attributed to periods
was changed from the straight-line method to the benefit formula basis. In addition, the method of determining thediscount rates applied in the calculation of projected benefit obligation was changed from the method using thenumber of years approximate to the average remaining service period of employees to the method using the single
weighted average discount rate that reflects the estimated period and amount of benefit payment in each period.
In accordance with the transitional treatment prescribed in Section 37 of the Retirement Benefits AccountingStandard, the Company applied the Accounting Standard for Retirement Benefits at the beginning of the firstquarter of fiscal 2014, and the effect of the accounting change in retirement benefit obligations and service cost wasreflected in retained earnings.
As a result, net defined benefit liability decreased by ¥576 million, and retained earnings increased by ¥370
million at the beginning of the first quarter of fiscal 2014. The impact on the consolidated operating loss, ordinary
loss and loss before income taxes and minority interests recorded for the first quarter of the current fiscal year isimmaterial.

-4-3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of May 31, 2014

End of the First Quarter of Fiscal
2014 (August 31, 2014)

AssetsCurrent assets
Cash and cash equivalents

2,997

3,659

Trade notes and accounts receivable

12,805

10,828

Products and finished goods

1,483

2,244

Work in process

3,459

3,741

Raw materials and stored goods

2,158

2,567

684

673

Other
Allowance for doubtful accounts
Total current assets

(34)

(28)

23,55523,686

Fixed assets
Property, plant and equipment

7,075

7,083

Accumulated depreciation(4,228)(4,284)

Buildings and structures, net

2,847

2,799

Buildings and structures

Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment

6,679

6,715

(5,770)(5,843)

908

872

289

289

63

78

3,171

3,197

(2,624)(2,665)

547

532

4,656

4,571

230

219

Intangible assets
Software
Other

37

19

Total intangible assets

268

239

Investment securities

14,262

15,477

Other

2,022

1,952

Investments and other assets

Allowance for doubtful accounts

(12)

(12)

Total investments and other assets

16,273

17,417

21,19722,22844,75245,915

Total fixed assets
Total assets-5-

(Millions of yen)
As of May 31, 2014

End of the First Quarter of Fiscal
2014 (August 31, 2014)

Trade notes and accounts payable

5,285

4,974

Short-term debt

1,987

1,772

374

21

Liabilities
Current liabilities

Income taxes payable

180

53

Accrued expenses

3,792

4,198

Advances received

292

265

Deposits received

228

314

Consumption and other taxes payable

Reserve for directors’ bonuses

28

7

Reserve for employees’ bonuses

915

412

Reserve for order losses

129

209

Other

281

326

13,496

12,556

6,934

8,284

145

145

Total current liabilities
Long-term liabilities
Long-term debt
Long-term payables

43

43

4,044

3,495

737

1,385

11,906

13,35425,402

25,910Capital stock

4,998

4,998

Capital surplus

3,177

3,177

Retained earnings

7,510

7,352

Treasury stock

(167)

(168)

Total shareholders’ equity

15,51915,359Unrealized holding gain on available-for-sale securities

3,989

4,772

Deferred gains or losses on hedges

(26)

-

Foreign currency translation adjustments

165

129

Allowance for environmental development
Net defined benefit liability
Other
Total long-term liabilities
Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income

Remeasurements of defined benefit plans

(298)

(256)

Total accumulated other comprehensive income

3,830

4,645

19,35020,00444,75245,915

Total net assets
Total liabilities and net assets-6-

(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statements of Income for the First Quarter of Fiscal 2014)(Millions of yen)
1Q FY2013
1Q FY2014(June 1, 2013 to August 31, 2013) (June 1, 2014 to August 31, 2014)
Net sales

6,734

7,197

Cost of sales

5,178

5,571

Gross profit

1,555

1,625

Selling, general and administrative expenses

1,612

1,817

Operating loss

(56)

(192)

Interest income

00Dividend income
Equity in earnings of unconsolidated subsidiaries andaffiliates
Foreign exchange gains

83

104

5

-

-

25

Non-operating income

Miscellaneous income

55Total non-operating income

94

135

Interest expense
Equity in loss of unconsolidated subsidiaries andaffiliates
Loss on disposal of fixed assets

42

35

-

7

5

0

Loss on foreign currency exchange

68-

Miscellaneous loss

0

9

117

52

(80)

(109)

Gain on sales of fixed assets-

12

Total extraordinary income

-

12

(80)

(96)

Current

28

3

Deferred127

140

Total income taxes

155

144

Loss before minority interests

(236)

(240)

Net loss

(236)

(240)

Non-operating expenses

Total non-operating expenses
Ordinary loss
Extraordinary income

Loss before income taxes and minority interests
Income taxes:-7-

(Consolidated Statements of Comprehensive Income)(Millions of yen)
1Q FY2013
1Q FY2014(June 1, 2013 to August 31, 2013) (June 1, 2014 to August 31, 2014)
Loss before minority interests

(236)

(240)

Other comprehensive income
Unrealized holding gain (loss) on available-for-salesecurities
Deferred gains or losses on hedges

(228)

782

-

26

Foreign currency translation adjustments

8(6)Remeasurements of defined benefit plans
Share of other comprehensive income of affiliates towhich the equity method is applied
Total other comprehensive income

-

42

61

(29)

(158)

814

(394)

573

(394)

573

-

-

Comprehensive income
Comprehensive income attributable to:
Owners of the parent
Minority 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)(a) The First Quarter of Fiscal 2013 (June 1, 2013 to August 31, 2013)
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

4,407

2,194

131

1

6,734

—

6,734

1

0

—

110

112

(112)

—

Total
4,409
2,194
131
112 6,846
(112)
6,734
Segment profit (loss)
538
(68)
(35)
8
442
(499)
(56)
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 499 million yen. This is comprised of anelimination of inter-segment sales and transfer amount of 3 million yen and corporate expenditure (a loss of
503 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-(b) The 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.

- 10 -

4. Supporting Materials for the Financial Results(1) The Status of Production, Orders, and Sales(a) Production Status
1Q FY2013(June 1, 2013 to August 31, 2013)
Business segment
Millions of yen
Share (%)
Transportation Systems
4,481
65.1
Industrial Systems
2,321
33.7
Information Equipment
84
1.2
Systems
Other
—
—
Total
6,888
100.0
Notes:
1. Amounts are based on sales prices.
2. Amounts are exclusive of consumption and other taxes.

1Q FY2014(June 1, 2014 to August 31, 2014)
Millions of yen
Share (%)
5,868
70.3
2,388
28.6
96

1.2

—
8,352

—
100.0

(b) Status of Orders Received
Business segment

1Q FY2013(June 1, 2013 to August 31, 2013)
Orders Received
Balance(Millions of yen)
(Millions of yen)
4,590
18,2383,164
5,726

Transportation Systems
Industrial Systems
Information Equipment
207
472
Systems
Other
1
—
Total
7,964
24,436
Notes:
1. Amounts are based on sales prices.
2. Amounts are exclusive of consumption and other taxes.

1Q FY2014(June 1, 2014 to August 31, 2014)
Orders Received
Balance(Millions of yen)
(Millions of yen)
5,749
26,672
2,924
5,504
225

343

1
8,901

—
32,521(c) Sales Status
Business segment

1Q FY2013(June 1, 2013 to August 31, 2013)
Millions of yen
Share (%)
4,407
65.4
2,194
32.6

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
131
1.9
121
1.7
Systems
Other
1
0.0
1
0.0
Total
6,734
100.0
7,197
100.0
Notes:
1. Amounts are exclusive of consumption and other taxes.
2. Looking at the overall nature and structure of the Group business activities, sales are generally concentrated in
the fourth quarter of each fiscal year. As a result, quarterly consolidated operating results are impacted byseasonal factors.

- 11 -