July 10, 2015

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

Stock Exchange: 1st Section of the Tokyo Stock Exchange
URL https://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 convention of ordinary general meeting of shareholders: August 27, 2015
Scheduled date of commencement of dividend payments:
August 28, 2015
Scheduled date of submission of financial report:
August 28, 2015
Preparation of financial report supplemental explanatory materials:
Yes
Holding of 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 Fiscal 2014
(June 1, 2014 to May 31, 2015)(1) Consolidated Operating Results(In millions of yen, except where noted; percentage figures show year-on-year increase or decrease.)

Operating Income
Ordinary Income
1,596
48.3%
2,056
98.5%
1,076
114.7%
1,035(10.0)%(Note) Comprehensive income: Fiscal 2014: 5,478 million yen [285.3%]
Fiscal 2013: 1,421 million yen [(62.2)%]
Fiscal 2014
Fiscal 2013

Net Sales
39,617
13.3%
34,957
14.3%

Diluted Net
Income per
Share (Yen)－－Net Income per
Share (Yen)
23.15
13.37

Fiscal 2014
Fiscal 2013

(Reference) Equity method investment gain or loss for:Net Income to
Shareholders’Equity Ratio(%) 5.0
3.4

Net Income
1,115
73.1%
644
(10.8)%

Ordinary
Income to Total
Assets Ratio(%) 4.2
2.4

Operating
Income to Net
Sales Ratio(%) 4.0
3.1

Fiscal 2014: 50 million yen
Fiscal 2013: (14) million yen(2) Consolidated Financial Position(In millions of yen, except where noted)

Total Assets
As of May 31, 2015
As of May 31, 2014

53,04144,752

Net Assets
24,905
19,350Shareholders’ Equity
Ratio (%)
47.0
43.2

Net Assets per Share(Yen)
516.82401.45(Reference) Shareholders’ equity: As of May 31, 2015: 24,905 million yen
As of May 31, 2014: 19,350 million yen(3) Consolidated Cash Flows(In millions of yen, except where noted)

Fiscal 2014
Fiscal 2013

Cash Flow fromOperating Activities

Cash Flow from
Investing Activities

Cash Flow from
Financing Activities

1,514
3,621

(988)
(753)

18
(1,199)Cash and Cash
Equivalents
at the End of
the Fiscal Year
3,570
2,997

2. Dividend Information

Fiscal 2013
Fiscal 2014
Fiscal 2015
(Forecast)

Annual Dividend (Yen)
Fiscal1Q Interim 3Q
Year-End
－
0.00
－
6.00
－
0.00
－
6.00
－

0.00

－

6.00

Total

Total Annual
Dividends

Dividend
Payout Ratio(Millions of yen)(consolidated, %) (consolidated, %)

6.00
6.00

289
289

6.00

44.9
25.9

Dividend on
Equity Ratio
1.5
1.3

20.7

3. Consolidated Performance Forecast for Fiscal 2015 (June 1, 2015 to May 31, 2016)(In millions of yen, except where noted; percentage figures show year-on-year increase or decrease.)

Net SalesFirst half
Full year

18,00044,000(5.6)%
11.1%

Operating Income

Ordinary Income

300
2,100

350
2,200

(48.7)%
31.6%(59.9)%
7.0%

Net Income
Attributable to
Owners of the
Parent200 (61.2)%
1,400
25.5%

Net Income
per Share
(Yen)
4.15
29.05

Notes:(1) Transfers of major subsidiaries during the period (transfers of specified subsidiaries accompanied by changes
in the scope of consolidation): No(2) Changes in accounting policies, changes in accounting estimates, and restatement(a) Changes in accounting policies in accordance with revisions to accounting standards and related practices: Yes(b) Any changes other than (a) above: No(c) Changes in accounting estimates: No(d) Restatement: No(3) Shares outstanding (common stock)(a) Number of shares outstanding as of the end of the period (including treasury stock):
May 31, 2015: 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:
May 31, 2015: 484,737 shares
May 31, 2014: 474,527 shares(c) Average number of shares for the period (fiscal year-to-date):
Fiscal 2014: 48,194,735 sharesFiscal 2013: 48,205,535 shares

(Reference) Summary of Non-Consolidated Business Results

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

Fiscal 2014
Fiscal 2013

Net Sales
34,59412.9%
30,634
15.4%

Operating Income
1,057
62.7%
650 296.8%

Fiscal 2014
Fiscal 2013

Net Income per Share
(Yen)
17.15
10.28

Diluted Net Income
per Share (Yen)－－

Ordinary Income
1,692
102.1%
837 (18.1)%

Net Income
826
66.8%
495 (32.8)%(2) Non-Consolidated Financial Position(In millions of yen, except where noted)

Total Assets
As of May 31, 2015
As of May 31, 2014
(Reference) Shareholders’ equity:

49,01941,394

Net Assets
21,51916,399

Shareholders’ Equity
Ratio (%)
43.9
39.6

Net Assets per Share(Yen)
446.56340.23As of May 31, 2015: 21,519 million yen
As of May 31, 2014: 16,399 million yen

Statements Regarding the Implementation Status of Audit ProceduresThis summary of consolidated business result is not subject to audit procedures as prescribed under the Financial
Instruments and Exchange Act. As of the date of report disclosure, audit procedures pursuant to the aforementioned
Act were yet to be 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 “1. Analysis of Results ofOperations and Financial Position” in Accompanying Materials on page 2 for details relating to operating results
forecasts.

Accompanying Materials Contents
1.

Analysis of Results of Operations and Financial Position .............................................................................. 2(1) Analysis of Results of Operations ................................................................................................................... 2(2) Analysis of Financial Position ........................................................................................................................ 3(3) Fundamental Policy concerning Distribution of Surplus and Dividend
for the Fiscal Year under Review and the Next Fiscal Year ........................................................................... 42.
Overview of the Group ................................................................................................................................... 5
3.
Management Policies ...................................................................................................................................... 6(1) Basic Management Policies of the Company.................................................................................................. 6(2) Pending Issues................................................................................................................................................. 6
4.
Basic Concept behind the Choice of Accounting Standards ........................................................................... 7
5.
Consolidated Financial Statements ................................................................................................................. 8(1) Consolidated Balance Sheets .......................................................................................................................... 8(2) Consolidated Statements of Income and Comprehensive Income ................................................................ 10(3) Consolidated Statements of Changes in Net Assets ...................................................................................... 12(4) Consolidated Statements of Cash Flows ....................................................................................................... 14-1-

1. Analysis of Results of Operations and Financial Position(1) Analysis of Results of Operations(a) Results of Operations in the Fiscal Year under Review
In fiscal 2014, the fiscal year ended May 31, 2015, the economy in Japan saw declined personal consumption due
to effects of the increase in the consumption tax rate and subdued conditions persisted for corporate capital
expenditures during the first half of the fiscal year. However, the overall economy was on a mild recovery trend
due to the signs of effect of the economic policies and monetary easing policy implemented by the current
administration and growth in corporate and personal income followed by an improved demand during the second
half of the fiscal year. Meanwhile, with regard to overseas, the recovery trend of the economy in the United States
continued, and China secured growth amid a decelerating growth rate, leading to a high level of investment ininfrastructure.
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 during fiscal 2014.
The Toyo Denki Group’s performance in fiscal 2014, the first fiscal year of the plan, was as follows.
Orders received decreased 8.2% compared with the previous fiscal year to 39,070 million yen. This overall
result reflected a decrease in orders received in the Transportation Systems segment and the Information Equipment
Systems segment, despite a surge in orders in the Industrial Systems segment.
Net sales increased 13.3% year on year to 39,617 million yen. Despite a decrease in the Information Equipment
Systems segment, this result reflected a significant surge in the Transportation Systems segment outside Japan aswell as an increase in the Industrial Systems segment.
From a profit perspective, operating income increased 48.3% compared with the previous fiscal year to 1,596
million yen, mainly due to increased revenue in the Transportation Systems segment and the Industrial Systems
segment. Ordinary income grew by 98.5% to 2,056 million yen as a result of recording foreign exchange gains
from a progressively weaker yen, and net income increased 73.1% to 1,115 million yen.
Information by business segment is presented as follows.
Transportation Systems
While orders received were up in Japan, orders received outside Japan were down mainly due to the delays, etc. ina planned overseas project, leading to a decrease of 16.9% compared with the previous fiscal year to 24,759 million
yen.
Net sales in this segment showed a significant upturn outside Japan, totaling 26,869 million yen, a 21.0%
increase from the previous fiscal year.
Segment profit increased 31.3% compared with the previous fiscal year to 3,117 million yen, which was
attributable to increased revenue and improved profitability of factories.
Industrial Systems
Orders received were up mainly for testing equipment for automobile development, as well as for infrastructure
related and for outside Japan, leading to an increase of 20.0% compared with the previous fiscal year to 13,319
million yen.
Net sales increased 6.3% year on year to 11,613 million yen primarily as sales of testing equipment for
automotive development increased, despite a decrease in sales related to processing equipment.
Segment profit totaled 848 million yen, an increase of 58.1% compared with the previous fiscal year due toincreased revenue.
Information Equipment Systems
Orders received in this segment decreased 41.1% to 985 million yen, primarily due to declines in orders for railway
station operating equipment and remote monitoring systems.
Net sales in this segment decreased 38.3% year on year to 1,127 million yen, owing to the same reasons asabove.
Segment profit was 71 million yen, a decrease of 79.5% compared with the previous fiscal year, due todecreased revenue.

-2-

Note: Net sales data by business segment represents sales to third parties and is exclusive of inter-segment sales andtransfers.
(b) Outlook for the Next Fiscal YearAs for the business environment surrounding the Company for the time being, capital expenditures are expected torecover backed by the favorable corporate earnings in Japan. With regard to overseas, the recovery trend of the U.S.
economy is expected to continue and infrastructure-related investment is forecast to expand in China and other
ASEAN countries.
Based on this recognition, the Group plans to exceed the performance of fiscal 2014 in all segments, namely,
Transportation Systems, Industrial Systems and Information Equipment Systems, by building on the measures
implemented during the first fiscal year of the medium-term management plan “NEXT 100: Beyond 100 Years.”
For this reason, we anticipate net sales of 44.0 billion yen, operating income of 2.1 billion yen, ordinary income of
2.2 billion yen and net income of 1.4 billion yen for the next fiscal year.
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 materially fromforecasts due to a variety of factors.
(2) Analysis of Financial Position(a) Status of Assets, Liabilities and Net Assets(Assets)
Total assets as of May 31, 2015 stood at 53,041 million yen, an increase of 8,288 million yen compared with theend of the previous fiscal year. Despite a decrease in work in process of 496 million yen, the increase in total assets
was largely attributable to increases in investment securities of 6,063 million yen, which was the result of anincrease in the market price of held listed securities, and trade notes and accounts receivable of 2,033 million yen.
(Liabilities)
Total liabilities amounted to 28,135 million yen, an increase of 2,733 million yen compared with the previous fiscal
year end. Despite a 2,799 million yen decrease in accrued expenses, the increase in total liabilities was largely
attributable to increases in electronically recorded obligations – operating of 3,022 million yen, deferred tax
liabilities of 1,965 million yen, and long-term debt of 706 million yen.
(Net Assets)
Net assets as of May 31, 2015 stood at 24,905 million yen, an increase of 5,555 million yen compared with theprevious fiscal year. This increase was largely attributable to a 4,327 million yen increase in unrealized holding
gain on available-for-sale securities and a 93 million yen increase in foreign currency translation adjustments
despite a decrease of 84 million yen from remeasurements of defined benefit plans.
(b) Status of cash flows
The balance of consolidated cash and cash equivalents as of May 31, 2015 stood at 3,570 million yen, an increaseof 573 million yen compared with the previous fiscal year-end.
Principal movements in operating, investing and financing cash flows for the fiscal year under review arepresented briefly as follows.
Cash flows from operating activities
Net cash provided by operating activities amounted to 1,514 million yen. Major cash outflows were an increase of
2,765 million yen in trade notes and accounts payable and a decrease of 2,802 million yen in accrued expenses.
Principal cash inflow was income before income taxes and minority interests at 2,014 million yen.
Cash flows from investing activities
Net cash used in investing activities totaled 988 million yen for the fiscal year under review and mainly comprised
funds used for the purchases of property, plant and equipment at 830 million yen, which included 111 million yen
as a deposit for the acquisition of land for the new Shiga Factory.

-3-

Cash flows from financing activities
Net cash provided by financing activities was 18 million yen. The principal cash inflow was an increase in longterm debt at 1,500 million yen, while major cash outflows were repayment of long-term debt at 1,073 million yen
and cash dividends paid at 287 million yen.

Trends in cash flow indices are as follows.
Fiscal
2010
38.7
49.8
2.6
18.1

Fiscal
2011
39.5
31.4
－
－

Fiscal
2012
43.7
34.0
9.2
5.1

Fiscal
2013
43.2
40.3
2.5
21.5

Fiscal
2014
47.0
42.3
6.2
10.8

Shareholders’ equity ratio (%)
Shareholders’ equity ratio based on market capitalization (%)
Ratio of interest-bearing liabilities to cash flows (Times)
Interest coverage ratio (Times)
Notes:- Shareholders’ Equity Ratio (%): Shareholders’ equity/Total assets- Shareholders’ equity ratio based on market capitalization (%): Market capitalization/Total assets- Ratio of interest-bearing liabilities to cash flows: Interest-bearing liabilities/Cash flows- Interest coverage ratio: Cash flows/Interest payments
1. Indices are calculated based on consolidated financial data.
2. Market capitalization is calculated by multiplying the period-end closing share price with the number of sharesissued and outstanding as of the period-end (after deducting treasury stock).
3. Interest-bearing liabilities include interest-bearing liabilities under liabilities on the consolidated balance sheet.
4. In each period where cash flows from operating activities are negative, ratio of interest-bearing liabilities to cash
flows and interest coverage ratio data is not recorded.

(3) Fundamental Policy concerning Distribution of Surplus and Dividend for the Fiscal Year under Review and the
Next Fiscal Year
The maintenance of stable dividends forms the basis of Toyo Denki’s distribution of profit. The Company applies
internal reserves to strengthen its financial position in addition to making strategic allocations to such areas asresearch and development, capital expenditure and outside of Japan expansion, with the aims of growing its
business and strengthening its management foundation in the future.
Dividends for the fiscal year under review will be six yen per share, unchanged from the previous term. The
Company intends to maintain dividends at six yen per share or more from the fiscal year ending May 31, 2016
onward.
Toyo Denki will continue seeking to expand its operations and strengthen its management foundation as it strives toachieve a stable dividend.

-4-

2. Overview of the GroupThe Toyo Denki Group is composed of Toyo Denki, six consolidated subsidiaries, two non-consolidated
subsidiaries, two equity-method affiliated companies and one non-equity-method affiliated company. The Group is
engaged in the manufacture and sale of electrical equipment for transportation, industrial, and informationequipment systems as well as incidental projects.
The organization and position of companies within the Toyo Denki Group together with business flows arepresented as follows.
Customer

TOYO DENKI SEIZO K.K.
Industrial Systems

Japan◎Toyosangyo K.K.
◎TD Drive
Manufacturing Co.,Ltd.

◎Toyo Kouki Co., Ltd.
◎Taihei Electric Co.,Ltd.

Outside of Japan

Transportation
Systems◎TOYO DENKI USA,
INC. (US)○Hunan Xiangyang
Electric Co., Ltd.
(China)○Changzhou Ruiyang
Transmission
Technology Co., Ltd.
(China)□Taiping Zhanyun
Automatic Door
(Changzhou) Co., Ltd.
(China)△Beijing Jingche
Shuangyang Traction
System Co., Ltd.
(China)□TOYO DENKI (BEIJING) CO., LTD.

Information
Equipment System

Other◎Toyo Shoji K.K.

◎Consolidated subsidiaries○Affiliates to which the equity method is applied□Non-consolidated subsidiaries△Affiliates to which the equity method is notapplied-5-

3. Management Policies(1) Basic Management Policies of the Company
The Toyo Denki Group is promoting “NEXT 100: Beyond 100 Years,” a medium-term management plan set toconclude at the end of fiscal 2016 (on May 31, 2017). The Group is working to promote measures under the basic
policies described below for further growth towards the achievement of its long-term vision.
Long-Term Vision
The Toyo Denki Group will contribute to the realization of an environmental-compatibility-based society throughglobal business development by fusing advanced breakthrough technologies together with the excellent motor drive
technologies it has cultivated since its foundation.
Fundamental Policy
The Toyo Denki Group is committed to drastically improving its corporate value while thoroughly strengthening its
management foundation, in order to become a Group well adapted to the new era in view of 2018, the 100th
anniversary of its foundation, and beyond.
Aiming to strengthen the management foundation as a 50 billion yen company in three years under the slogan:“Beyond the 100-Year Mark”(a) Strengthen international competitiveness(b) Build a stable business earnings structure(c) Restructure production system(d) Promote development of technology(e) Establish new businesses(f) Train human resources to support global development(2) Pending Issues
The Toyo Denki Group is now implementing “NEXT 100: Beyond 100 Years,” its medium-term management planand is formulating and promoting the principal measures as follows in line with the fundamental policies.
The specific measures are presented as follows.
(a)Strengthen international competitiveness- Promote business centered on the Group’s bases in overseas markets in China, the U.S., South Korea, India, andTaiwan- Build up the brand and expand business through bases in Southeast Asia
- Utilize alliances to cultivate new markets(b) Build a stable business earnings structure- Expand its share in Japan’s Mothers market- Stabilize earnings potential in Industrial Systems segment(c) Restructure production system- Expand production capacity and establish global production system as Toyo Denki in view of its 100th year andbeyond- Strengthen global quality control systems, including supplier management- Reorganize backbone systems(d) Promote development of technology- Proactively utilize young human resources with an eye to achieving fresh ideas- Train advanced engineers through active secondment to research institutions such as universities(e) Establish new businesses- Promote businesses in distributed power sources and electrification- Establish system to expand overseas maintenance business(f) Train human resources to support global development- Procure next-generation human resources and capacity-development systems- Establish working and living environments that the promotion and development of global business(g) Promote CSR activities-6-4. Basic Concept behind the Choice of Accounting Standards
To sustain comparability of consolidated financial statements between periods as well as between companies, theGroup shall, for the time being, prepare consolidated financial statements under the Japanese GAAP.
We will appropriately respond to the application of the International Financial Reporting Standards (IFRS)
considering various circumstances in Japan and overseas.

-7-

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

As of May 31, 2015

AssetsCurrent assets
Cash and cash equivalents

2,997

3,570

Trade notes and accounts receivable

12,805

14,838

Products and finished goods

1,483

1,283

Work in process

3,459

2,962

Raw materials and stored goods

2,158

2,149

Advances

51

23

Other accounts receivable

25

13

Deferred tax assets

544

660

Other

63

132

(34)

(40)

23,55525,593

7,075

7,058

Accumulated depreciation(4,228)(4,320)

Buildings and structures, net

2,847

2,737

Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures

6,679

6,792

(5,770)(5,930)

908

862

Land

289

289

Construction in progress

63

227

Machinery and equipment
Accumulated depreciation
Machinery and equipment, net

Other
Accumulated depreciation

3,171

3,272

(2,624)(2,786)

547

486

4,656

4,603

Software

230

204

Other

37

144

Total intangible assets

268

348

14,262

20,326

35

7

Other

1,986

2,173

Allowance for doubtful accounts

(12)

(12)

Total investments and other assets

16,27322,49521,19727,44744,75253,041Other, net
Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities
Deferred tax assets

Total fixed assets
Total assets-8-

(Millions of yen)
As of May 31, 2014

As of May 31, 2015

5,285

5,116

Liabilities
Current liabilities
Trade notes and accounts payable

-

3,022

1,987

1,783

Income taxes payable

374

642

Consumption and other taxes payable

180

249

Accrued expenses

3,792

992

Advances received

292

288

Deposits received

228

230

Reserve for directors’ bonuses

28

41

Reserve for employees’ bonuses

915

927

Reserve for order losses

129

301

Electronically recorded obligations - operating
Short-term debt

Allowance for environmental development
Other
Total current liabilities

-

65

281

307

13,496

13,969Long-term liabilities

6,934

7,640

Long-term payables

145

141

Deferred tax liabilities

653

2,618

Allowance for environmental development

43

-

4,044

3,725

84

40

11,906

14,16625,402

28,135

Capital stock

4,998

4,998

Capital surplus

3,177

3,177

Retained earnings

7,510

8,708

Long-term debt

Net defined benefit liability
Other
Total long-term liabilities
Total liabilities
Net assets
Shareholders’ equity

Treasury stock

(167)

(171)

Total shareholders’ equity

15,51916,712

Unrealized holding gain on available-for-sale securities

3,989

8,317

Deferred gains or losses on hedges

(26)

-

Accumulated other comprehensive income

Foreign currency translation adjustments

165

259

Remeasurements of defined benefit plans

(298)

(383)

Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

-9-

3,830

8,193

19,35024,90544,75253,041

(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
For the fiscal year
ended May 31, 2014

For the fiscal year
ended May 31, 2015

Net sales

34,95739,617

Cost of sales

26,85930,334Gross profit

8,097

9,282

Selling, general and administrative expenses

7,021

7,686

Operating income

1,076

1,596

0

0

168

203

-

50

-

363

Non-operating income
Interest income
Dividend income
Equity in profit of unconsolidated subsidiaries andaffiliates
Foreign exchange gains
Life insurance dividend income

57

Miscellaneous income

2226

Total non-operating income

196

652

Interest expense
Equity in loss of unconsolidated subsidiaries andaffiliates
Loss on foreign currency exchange

181

138

14

-

14

-

Loss on disposal of fixed assets

13

4Delinquent charge for delay in delivery

1

25

Miscellaneous loss

10

24

Total non-operating expenses

236

192

1,035

2,056

Gain on sales of fixed assets-

12

Total extraordinary income-

12

Loss on liquidation of subsidiaries and affiliates

5-

Impairment loss-

30

Provision of allowance for environmental development-

24

Total extraordinary losses

5

54

1,030

2,014

Non-operating expenses

Ordinary income
Extraordinary income

Extraordinary loss

Income before income taxes and minority interests
Income taxes:
Current

624

944

Deferred

(237)

(45)

Total income taxes

386

898

Income before minority interests

644

1,115

Net income

644

1,115

- 10 -

(Consolidated Statements of Comprehensive Income)(Millions of yen)
For the fiscal year
ended May 31, 2014

For the fiscal year
ended May 31, 2015
644

1,115

Unrealized holding gain on available-for-sale securities

622

4,327

Deferred gains or losses on hedges

(26)

26

14

(11)

-

(84)

166

104

Income before minority interests
Other comprehensive income

Foreign currency translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income of affiliates towhich the equity method is applied
Total other comprehensive income
Comprehensive income

777

4,362

1,421

5,478

1,421

5,478

-

-

Comprehensive income attributable to:
Owners of the parent
Minority interests- 11 -

(3) Consolidated Statements of Changes in Net Assets
For the fiscal year ended May 31, 2014 (June 1, 2013 to May 31, 2014)(Millions of yen)
Shareholders’ equity
Capitalstock
Balance as of the beginning of
the fiscal period under review

CapitalsurplusRetainedearnings

Treasury
stock

Total
shareholders’equity

4,998

3,177

7,155

(163)

15,167

-

-

-

-

-

4,998

3,177

7,155

(163)

15,167

Distribution ofretained earnings

-

-

(289)

-

(289)

Net income

-

-

644

-

644

Acquisition of treasury stock

-

-

-

(3)

(3)

Net changes of items otherthan shareholders’ equity

-

-

-

-

-

Total change during fiscal
period under review

-

-

355

(3)

351

4,998

3,177

7,510

(167)

15,519Cumulative effects of changes inaccounting policies
Restated balance
Change during fiscal period
under review

Balance as of the end of fiscal
period under review

Accumulated other comprehensive income
Total
Remeasurements accumulatedof definedotherbenefit planscomprehensive
incomeValuationdifference on
available-forsale securities

Deferred
gains or losses
on hedges

Foreigncurrencytranslation
adjustment

3,367

-

(14)

-

3,352

18,519

-

-

-

-

-

-

3,367

-

(14)

-

3,352

18,519Distribution ofretained earnings

-

-

-

-

-

(289)

Net income

-

-

-

-

-

644

Acquisition of treasury stock

-

-

-

-

-

(3)

Net changes of items otherthan shareholders’ equity

622

(26)

180

(298)

478

478

Total change during fiscal
period under review

622

(26)

180

(298)

478

830

3,989

(26)

165

(298)

3,830

19,350

Balance as of the beginning of
the fiscal period under review
Cumulative effects of changes inaccounting policies
Restated balance

Total net
assetsChange during fiscal period
under review

Balance as of the end of fiscal
period under review- 12 -

For the fiscal year ended May 31, 2015 (June 1, 2014 to May 31, 2015)(Millions of yen)
Shareholders’ equity
Capitalstock
Balance as of the beginning of
the fiscal period under review

CapitalsurplusRetainedearnings

Treasury
stock

Total
shareholders’equity

4,998

3,177

7,510

(167)

15,519

-

-

370

-

370

4,998

3,177

7,881

(167)

15,890Distribution ofretained earnings

-

-

(289)

-

(289)

Net income

-

-

1,115

-

1,115

Acquisition of treasury stock

-

-

-

(4)

(4)

Net changes of items otherthan shareholders’ equity

-

-

-

-

-

Total change during fiscal
period under review

-

-

826

(4)

822

4,998

3,177

8,708

(171)

16,712

Cumulative effects of changes inaccounting policies
Restated balance
Change during fiscal period
under review

Balance as of the end of fiscal
period under review

Accumulated other comprehensive income
Total
Remeasurements accumulatedof definedotherbenefit planscomprehensive
incomeValuationdifference on
available-forsale securities

Deferred
gains or losses
on hedges

Foreigncurrencytranslation
adjustment

3,989

(26)

165

(298)

3,830

19,350

-

-

-

-

-

370

3,989

(26)

165

(298)

3,830

19,720Distribution ofretained earnings

-

-

-

-

-

(289)

Net income

-

-

-

-

-

1,115

Acquisition of treasury stock

-

-

-

-

-

(4)

Net changes of items otherthan shareholders’ equity

4,327

26

93

(84)

4,362

4,362

Total change during fiscal
period under review

4,327

26

93

(84)

4,362

5,184

Balance as of the end of fiscal
period under review

8,317

-

259

(383)

8,193

24,905

Balance as of the beginning of
the fiscal period under review
Cumulative effects of changes inaccounting policies
Restated balance

Total net
assetsChange during fiscal period
under review- 13 -

(4) Consolidated Statements of Cash Flows(Millions of yen)
For the fiscal year
ended May 31, 2014

For the fiscal year
ended May 31, 2015

Cash flows from operating activities
Income before income taxes and minority interests

1,030

2,014

Depreciation and amortization

1,000

881

Increase (decrease) in allowance for doubtful accounts

(156)

6

Increase (decrease) in reserve for employees’ bonuses
Increase (decrease) in allowance for environmental
development
Increase (decrease) in reserve for employees’ retirement
benefits
Increase (decrease) in net defined benefit liability

142

12

-

21

(3,289)

-

3,580

(106)

(168)

(203)

181

138

586

(1,925)

(430)

737

Increase (decrease) in trade notes and accounts payable

635

2,765

Increase (decrease) in reserve for order losses

(68)

171

Increase (decrease) in advances received

(142)

(14)

Increase (decrease) in accrued expenses

902(2,802)

Interest and dividends income
Interest expenses
Decrease (increase) in notes and accounts receivabletrade
Decrease (increase) in inventories

-

30

Other

384

391

Subtotal

4,188

2,116

168

219

Interest expenses paid

(168)

(139)

(Payments for) refund of corporate and other taxes

(567)

(681)

Net cash provided by operating activities

3,621

1,514

Purchases of property, plant and equipment

(635)

(830)

Purchases of investment securities

(13)

(13)

Other payments

(74)

(76)

Impairment loss

Interest and dividends income received

Cash flows from investing activities

4

6

Other

(34)

(74)

Net cash used in investing activities

(753)

(988)

Other receipts- 14 -

(Millions of yen)
For the fiscal year
ended May 31, 2014

For the fiscal year
ended May 31, 2015

Cash flows from financing activities(2,265)(114)

Increase in long-term debt

2,650

1,500

Repayment of long-term debt

(1,172)(1,073)

Redemption of bonds payable

(120)

-

Increase (decrease) in short-term loans payable, net

Proceeds from sales of treasury stock
Cash dividends paid
Other
Cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Increase (decrease) in cash and cash equivalents
Balance of cash and cash equivalents at the beginning of theperiodBalance of cash and cash equivalents at the end of theperiod- 15 -

(3)

(4)

(287)

(287)

(0)

(0)

(1,199)

18

26

28

1,695

573

1,302

2,997

2,997

3,570