April 4, 2013

Summary of Consolidated Financial Results for the First Three Quarters of Fiscal 2012(English translation from the original Japanese document)
For the fiscal year ending May 31, 2013
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
Hiroshi Tsuchida, President
Yoshifumi Otsubo, Operating Officer and General Manager, Management Planning
Division
TEL +81-3-5202-8122
Scheduled date of submission of quarterly securities report:
April 11, 2013
Scheduled date of commencement of dividend payments:—
Preparation of quarterly financial results supplemental explanatory materials: Yes
Holding of quarterly financial results briefing:
Yes (For analysts)
Note: Amounts in financial statements and the supplementary data are rounded down.

1. Consolidated Business Results for the First Three Quarters of Fiscal 2012
(June 1, 2012 to February 28, 2013)(1) Consolidated Operating Results(In millions of yen, except where noted; percentage figures show year-on-year increase or decrease.)

First Three Quarters, FY2012First Three Quarters, FY2011(Note) Comprehensive income:First Three Quarters, FY2012First Three Quarters, FY2011

Net Sales
20,553 (23.8)%
26,957 (3.2)%

Operating Income(521)－
653 (33.4)%

Ordinary Income(19)－
790 (17.5)%

Net Income(319)－
232 (45.3)%

3Q FY2012: 1,749 million yen (85.8%)
3Q FY2011: 941 million yen (61.0%)

Net Income per Share (Yen)(6.63)
4.83

Diluted Net Income per Share (Yen)－－(2) Consolidated Financial Position(In millions of yen, except where noted)

As of February 28, 2013
As of May 31, 2012
(Reference) Shareholders’ equity:

Total Assets
41,75838,086

Net Assets
16,50815,049

Shareholders’ Equity Ratio (%)
39.5
39.5

As of February 28, 2013: 16,508 million yen
As of May 31, 2012: 15,049 million yen

2. Dividend Information
Annual Dividend (Yen)
Fiscal Year1Q
Interim
3Q
End
FY2011
－
0.00
－
6.00
FY2012－0.00－
FY2012 (Forecast)
6.00(Note) Revisions to the most recently announced dividend forecasts: No

Total
6.00
6.00

3. Consolidated Performance Forecast for Fiscal 2012 (June 1, 2012 to May 31, 2013)(In millions of yen, except where noted; percentage figures show year-on-year increase or decrease.)

Net Sales

Operating Income

Ordinary Income

Full fiscal year 33,000 (14.4)%700 (58.8)%750 (58.1)%(Note) Revisions to the most recently announced performance forecast: No

Net Income
350(55.5)%Net Income
per Share
(Yen)
7.26

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: Yes(d) Restatement: No(4) Shares outstanding (common stock)(a) Number of shares outstanding as of the end of the period (including treasury stock):February 28, 2013: 48,675,000 shares
May 31, 2012: 48,675,000 shares(b) Number of shares of treasury stock as of the end of the period:
February 28, 2013: 462,065 shares
May 31, 2012: 458,570 shares(c) Average number of shares for the period (fiscal year-to-date):
First Three Quarters, FY2012: 48,215,061 shares First Three Quarters, FY2011: 48,219,749 shares
Statements Regarding the Implementation Status of Quarterly Review Procedure
This 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 financial report
review procedures pursuant to the aforementioned Act had not been 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. cautions readers that due to a variety of factors
actual results may differ materially from forecasts. Please refer to “Qualitative Information regarding Consolidated
Performance Forecast” in Accompanying Materials on page 3 for details relating to operating results forecasts.

Accompanying Materials Contents
1.

Qualitative Information regarding Quarterly Consolidated Financial Results ................................................ 2(1) Qualitative Information regarding Consolidated Business Results ................................................................. 2(2) Qualitative Information regarding Consolidated Financial Position ............................................................... 2(3) Qualitative Information regarding Consolidated Performance Forecast ......................................................... 3
2.
Items regarding Summary Information (Notes) .............................................................................................. 3(1) Outline of the Transfer of Major Subsidiaries during the Period .................................................................... 3(2) Application of Special Accounting Practices for the Preparation of
Quarterly Consolidated Financial Statements ................................................................................................. 3(3) Changes in Accounting Principles, Changes in Accounting Estimates, and Retrospective Restatements...... 3
3.
Quarterly Consolidated Financial Statements ................................................................................................. 4(1) Quarterly Consolidated Balance Sheets .......................................................................................................... 4(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Comprehensive Income ............ 6(Quarterly Consolidated Statements of Income for the First Three Quarters of Fiscal 2012) ...................... 6(Quarterly Consolidated Statements of Comprehensive Income for the First Three Quarters of Fiscal 2012) .... 7(3) Notes on Going Concern Assumptions ........................................................................................................... 8(4) Segment Information ...................................................................................................................................... 8(5) Notes on Significant Fluctuations in Shareholders' Equity ............................................................................. 94.
Supporting Materials ..................................................................................................................................... 10(1) The Status of Production, Orders, and Sales ................................................................................................. 10-1-

1. Qualitative Information regarding Quarterly Consolidated Financial Results(1) Qualitative Information regarding Consolidated Business Results
During the first three quarters (June 1, 2012 to February 28, 2013) of fiscal 2012, the fiscal year ending May 31,
2013, economic conditions in Japan showed signs of gradual recovery. Demand for earthquake recovery andrestoration steadily increased, and the downward turnaround of the yen and climbing stock prices spurred byhopeful expectations of the economic policies of the new administration have held steady since the end of theprevious year. Uncertainty over the future still prevails, however, mainly as a consequence of the debt crisis in
Europe, weaker rates of economic growth in developing countries, and the cooling relationship between China andJapan.
Under these circumstances, the Toyo Denki Group has been working in unison to thoroughly strengthen its
management foundation and drastically improve its corporate value in the first year of “Dash 2015,” the Group’s
medium-term management plan launched in June 2012, in accordance with the plan.
The Toyo Denki Group's performance in the first three quarters of fiscal 2012, the first fiscal year of themedium-term management plan, was as follows.
Orders received increased 7.7% compared with the corresponding period of the previous fiscal year to 24,870
million yen. While orders received in the Information Equipment Systems segment dropped significantly from thesurging levels of the previous year, orders received in the Transportation Systems segment were pushed upward by
the recovery in overseas demand, and orders received in the Industrial Systems segment turned to a slight increase,
as well.
Net sales decreased 23.8% year on year to 20,553 million yen. Net sales in the Transportation Systems segment
decreased significantly, particularly overseas, and net sales in the Industrial Systems segment also decreased due toinactivity in production equipment and lagging overseas sales.
From a profit perspective, Toyo Denki incurred an operating loss of 521 million yen. This represented anegative year-on-year turnaround of 1,174 million mainly attributable to the decrease in net sales. The Company
also incurred an ordinary loss of 19 million yen partly attributable to the posting of foreign exchange gains derived
from the correction of the yen appreciation. This represented a negative year-on-year turnaround of 810 million
yen. The Company reports a net loss of 319 million yen. This represented a negative year-on-year turnaround of
552 million yen.
Looking at the overall nature of the Group's business activities, sales are generally concentrated in the fourth
quarter of each fiscal year. As a result, consolidated operating results are impacted by seasonal factors.
Information by business segment is presented as follows.
(a) Transportation Systems
Orders received increased 15.5% compared with the corresponding period of the previous fiscal year to 15,261
million yen, mainly due to orders received for electrical products and equipment for the LRV (Light Rail
Vehicle) in Los Angeles, USA, though domestic orders received remained almost unchanged. Besides a decreasein domestic net sales due to muted demand for renewal, net sales for high-speed railroads and subways in China
decreased significantly. In overall terms, net sales in this segment decreased 33.9% year on year to 11,289
million yen. Segment profit dropped 55.7% year on year to 839 million yen.
(b) Industrial Systems
Orders received for testing equipment for automotive development and infrastructure increased, outweighing
the slump of overseas orders received. In overall terms, orders received in this segment increased 4.5% year on
year to 8,256 million yen. While net sales for testing equipment for automotive development and infrastructure
progressed favorably, net sales for production equipment and overseas significantly declined. In overall terms,
net sales decreased 8.5% compared with the corresponding period of the previous fiscal year to 8,152 million
yen. Segment profit increased by 131 million yen year on year to 103 million yen, buoyed by improved
profitability.
(c) Information Equipment Systems
Orders received in this segment decreased 31.4% compared with the corresponding period of the previous fiscal
year to 1,347 million yen, retreating from the high levels generated by surging orders for mobile terminals for
conductors in the previous year. Net sales in this segment, however, increased 14.9% year on year to 1,107
million yen due to an upswing in sales of equipment relating particularly to railway station operations. In thefirst three quarters of fiscal 2012, segment profit decreased 52.3% year on year to 94 million yen due todecreased profitability and an increase in development costs.

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Note 1: Effective from the first quarter of fiscal 2012 in the reporting of reportable segments, the “Information
Systems” segment was renamed the “Information Equipment Systems” segment.
Note 2: Net sales data by business segment represents sales to third parties and is exclusive of inter-segment sales
and transfers.

(2) Qualitative Information regarding Consolidated Financial Position
Total assets as of February 28, 2013 stood at 41,758 million yen, an increase of 3,672 million yen compared withthe end of the previous fiscal year. Despite a decrease in trade notes and accounts receivable of 794 million yen,
this increase was largely attributable to increases in investment securities of 3,079 million yen and inventories of
1,614 million yen.
Total liabilities amounted to 25,250 million yen, an increase of 2,213 million yen compared with the previous
fiscal year end. While long-term borrowings contracted 811 million yen, this upswing in total liabilities reflected a
4,719 million yen increase in short-term borrowings.
Net assets stood at 16,508 million yen, 1,459 million yen higher than the balance as of the previous fiscal yearend. Major movements were a 608 million yen decrease in retained earnings and a 2,060 million yen increase inunrealized holding gain on securities.
(3) Qualitative Information regarding Consolidated Performance Forecast
Toyo Denki has yet to revise its earnings forecast for the fiscal year ending March 31, 2013 released on December
12, 2012.
Note: The aforementioned forecasts of business results are based on management assumptions and beliefs in lightof currently available information. Toyo Denki cautions readers that actual results could differ from forecasts due
to a variety of factors.

2. Items regarding Summary Information (Notes)(1) Outline of the 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 principles difficult to distinguish from changes in accounting estimates)
Effective from the first quarter of fiscal 2012, Toyo Denki and its domestic consolidated subsidiaries have changed
the depreciation method for property, plant and equipment acquired on or after June 1, 2012 under the revised
Corporation Tax Act, in connection with the revision of the Act.
As a result, operating loss, ordinary loss, and loss before income taxes and minority interests for the first threequarters of fiscal 2012 each decreased 31 million yen compared with the amount calculated by the previous
method.

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3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of May 31, 2012

End of the First Three Quarters of
Fiscal 2012 (February 28, 2012)

AssetsCurrent assets
Cash and cash equivalents

1,489

1,757

Trade notes and accounts receivable

13,72812,934

Products and finished goods

1,598

1,728

Work in process

2,242

3,289

Raw materials and stored goods

1,690

2,127

694

755

Other
Allowance for doubtful accounts
Total current assets

(28)

－

21,415

22,593Fixed assets
Property, plant and equipment

6,279

6,916

Accumulated depreciation(3,905)(3,936)

Buildings and structures, net

2,373

2,980

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

6,404

6,749

(5,174)(5,514)

1,229

1,234

289

289

495

24

2,714

2,983

(2,242)(2,410)

472

572

4,861

5,101

279

267

Intangible assets
Software
Other

66

53

Total intangible assets

346

321

Investment securities

8,929

12,009

Other

2,550

1,771

Allowance for doubtful accounts

(16)

(38)

Total investments and other assets

11,463

13,742

16,67019,16538,086

41,758Investments and other assets

Total fixed assets
Total assets-4-

(Millions of yen)
As of May 31, 2012

End of the First Three Quarters of
Fiscal 2012 (February 28, 2012)

Liabilities
Current liabilities
Trade notes and accounts payable

4,544

4,259

Short-term borrowings

6,376

11,095Current portion of corporate bonds

160

120

Income taxes payable

473

41

Consumption and other taxes payable

185

16

Accrued expenses

2,909

2,793

Advances received

182

353

Deposits received

213

218

Reserve for employees’ bonuses

891

440

Reserve for directors’ bonuses

46

35

Reserve for order losses

197

108

540

206

16,72019,688120

60

Long-term borrowings

2,729

1,917

Reserve for employees’ retirement benefits

3,136

3,206

Other
Total current liabilities
Long-term liabilities
Corporate bonds

Allowance for environmental development

43

43

Long-term payables

251

187

Other

35

146

6,316

5,561

23,03625,250Common stock

4,998

4,998

Capital surplus

3,177

3,177

Retained earnings

6,722

6,113

Treasury stock

(162)

(163)

Total shareholders' equity

14,735

14,125415

2,476

Total long-term liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Unrealized holding gain on securities
Foreign currency translation adjustments
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

-5-

(102)

(93)

313

2,382

15,04916,50838,086

41,758

(2) Quarterly Consolidated Statements of Income and Quarterly Comprehensive Income(Quarterly Consolidated Statements of Income for the First Three Quarters of Fiscal 2012)(Millions of yen)First Three Quarters, FY2011First Three Quarters, FY2012(June 1, 2011 to February 29, 2012) (June 1, 2012 to February 28, 2013)
Net sales

26,957

20,553

Cost of sales

20,98915,810Gross profit

5,968

4,743

Selling, general and administrative expenses

5,315

5,264

653

(521)

Operating income (loss)
Non-operating income
Interest income

00Dividend income
Equity in earnings of unconsolidated subsidiaries andaffiliates
Life insurance dividend income

107

150

51

38

46

85

Foreign exchange gains

53

382

Miscellaneous income

2129

Total non-operating income

279

685

116

134

Non-operating expenses
Interest expense
Loss on disposal of property, plant and equipment

3

7

Miscellaneous loss

21

41

Total non-operating expenses

141

183

790

(19)

Ordinary income (loss)
Special losses
Office transfer expenses-

15

Loss on disaster7-

Total special losses

7

15

783

(34)

Income (loss) before income taxes and minority interests

Income taxes:
Current

154

89

Deferred

395

195

550

284

Income (loss) before minority interests

232

(319)

Net income (loss)

232

(319)

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(Quarterly Consolidated Statements of Comprehensive Income for the First Three Quarters of Fiscal 2012)(Millions of yen)First Three Quarters, FY2011First Three Quarters, FY2012(June 1, 2011 to February 29, 2012) (June 1, 2012 to February 28, 2013)
232

(319)

Unrealized holding gain (loss) on securities

727

2,060

Foreign currency translation adjustments
Share of other comprehensive income of affiliates
accounted for by the equity method
Total other comprehensive income

(8)

13

(9)

(4)

709

2,069

Comprehensive income

941

1,749

Owners of the parent

941

1,749

Minority interests－－

Income (loss) before minority interests
Other comprehensive income

Comprehensive income attributable to:-7-(3) Notes on Going Concern Assumptions
Not applicable.
(4) Segment Information(a) The First Three Quarters of Fiscal 2011 (June 1, 2011 to February 29, 2012)
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
Statement of
Income3

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

17,077

8,909

963

6

26,957—

26,957

28

0

—

623

652

(652)

—

Total
17,1068,909
963
629 27,610(652)
26,957
Segment profit (loss)
1,893
(27)
197
31
2,094
(1,441)
653
Notes:
1. The “Other” segment includes operations not included in reporting segments such as core corporate systemadministration and the dispatch of temporary staff.
2. The segment profit (loss) adjustment amount is a loss of 1,441 million yen. This is comprised of anelimination of inter-segment sales and transfer amount of 1 million yen and corporate expenditure (a loss of
1,439 million yen) that is not allocated to each reporting segment. Corporate expenditure is primarily
comprised of selling, general and administrative as well as research and development costs that are notallocated to each reporting segment.
3. Segment profit (loss) has been adjusted with operating income recorded under the quarterly consolidated
statement of income.

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(b) The First Three Quarters of Fiscal 2012 (June 1, 2012 to February 28, 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
Statement of
Income3

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

11,289

8,152

1,107

4

20,553—

20,553

30

1

—

398

430

(430)

—

Total
11,3198,153
1,107403 20,983(430)
20,553
Segment profit (loss)
839
103
94
26
1,063
(1,585)(521)
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 1,585 million yen. This is comprised of anelimination of inter-segment sales and transfer amount of 2 million yen and corporate expenditure (a loss of
1,582 million yen) that is not allocated to each reporting segment. Corporate expenditure is primarily
comprised of selling, general and administrative as well as research and development costs that are notallocated to each reporting segment.
3. Segment profit (loss) has been adjusted with operating loss recorded under the quarterly consolidated
statement of income.
4. Effective from the first quarter of fiscal 2012 in the reporting of reportable segments, the “Information
Systems” segment was renamed the “Information Equipment Systems” segment.
(5) Notes on Significant Fluctuations in Shareholders’ Equity
Not applicable.

-9-4. Supporting Materials(1) The Status of Production, Orders, and Sales(a) Production PerformanceFirst Three Quarters, FY2011First Three Quarters, FY2012(June 1, 2011 to February 29, 2012)(June 1, 2012 to February 28, 2013)
Business segment
Millions of yen
Share (%)
Millions of yen
Share (%)
Transportation Systems
16,86665.1
11,49359.0
Industrial Systems
8,406
32.4
7,235
37.1
Information Equipment
648
2.5
765
3.9
Systems
Other
—
—
—
—
Total
25,921
100.0
19,494100.0
Notes:
1. Amounts are based on sales prices.
2. Amounts are exclusive of consumption and other taxes.
3. Effective from the first quarter of fiscal 2012 in the reporting of reportable segments, the “Information
Systems” segment was renamed the “Information Equipment Systems” segment.
(b) Status of Orders Received
Business segment

First Three Quarters, FY2011(June 1, 2011 to February 29, 2012)
Orders Received
Balance(Millions of yen)
(Millions of yen)
13,215
17,064
7,899
3,656First Three Quarters, FY2012(June 1, 2012 to February 28, 2013)
Orders Received
Balance(Millions of yen)
(Millions of yen)
15,261
18,412
8,256
4,945First Three Quarters, FY2011(June 1, 2011 to February 29, 2012)
Millions of yen
Share (%)
17,077
63.4
8,909
33.0

First Three Quarters, FY2012(June 1, 2012 to February 28, 2013)
Millions of yen
Share (%)
11,289
54.9
8,152
39.7

Transportation Systems
Industrial Systems
Information Equipment
1,964
1,140
1,347
791
Systems
Other
6
—
4
—
Total
23,085
21,861
24,87024,149Notes:
1. Amounts are based on sales prices.
2. Amounts are exclusive of consumption and other taxes.
3. Effective from the first quarter of fiscal 2012 in the reporting of reportable segments, the “Information
Systems” segment was renamed the “Information Equipment Systems” segment.
(c) Sales Performance
Business segment

Transportation Systems
Industrial Systems
Information Equipment
963
3.6
1,107
5.4
Systems
Other
6
0.0
4
0.0
Total
26,957100.0
20,553100.0
Notes:
1. Amounts are exclusive of consumption and other taxes.
2. Looking at the overall nature of the Group business activities, sales are generally concentrated in the fourth
quarter of each fiscal year. As a result, consolidated operating results are impacted by seasonal factors.
3. Effective from the first quarter of fiscal 2012 in the reporting of reportable segments, the “Information
Systems” segment was renamed the “Information Equipment Systems” segment.

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