July 12, 2018
To Whom It May Concern
Company name
RepresentativeInquiries

Toyo Denki Seizo K.K.
Kenzo Terashima, President,
Representative Director(Code No. 6505 1st Section of the Tokyo
Stock Exchange)
Takatoshi Otsuka, General Manager,
Management Planning Division(TEL 03-5202-8122)

Toyo Denki Describes Differences between Consolidated Earnings Forecasts and Actual Results for the Fiscal Year
Ended May 31, 2018 and Extraordinary Income and Extraordinary Loss RecognizedToyo Denki Seizo K.K. (hereinafter “Toyo Denki”) today announced details describing differences between itsconsolidated earnings forecasts for the fiscal year ended May 31, 2018 disclosed on January 11, 2018 and its actual results
for the same period made public today. Tokyo Denki also announced that it recognized extraordinary income andextraordinary loss as follows.

1.

Differences between Consolidated Earnings Forecasts and Actual Results for the Fiscal Year Ended May 31, 2018 (FromJune 1, 2017 to May 31, 2018)
Consolidated
Net Sales

Consolidated
Operating
IncomeConsolidated

Net Income Attributable toNet Income perOrdinary IncomeOwners of the Parent

Share (Yen)Million yen

Million yen

Million yenMillion yen

Yen

41,000

1,300

1,450

1,500

158.24

Actual results (B)42,527

366

515

692

73.33

Change (B-A)

1,527(934)

(935)

(808)

3.7

-71.8

-64.4

-53.9

40,668

1,571

1,663

1,174

Previous forecast (A)Percent change (%)(Reference) Business results
for the previous year (thefiscal year ended May 31,123.87

2017)

2.

Reasons for Difference
Consolidated net sales for the fiscal year ended May 31, 2018 were higher than those for the previous fiscal year andclose to the forecast made public on January 11, 2018 due to the actualized results of the change of the businesspromotion system made on December 1, 2017 in the industrial systems business and strong incoming orders in theinformation equipment systems business. Meanwhile, consolidated operating income, ordinary income and net income

attributable to owners of the parent were lower than the consolidated earnings forecasts due to increase in cost morethan forecasted in the fourth quarter term in which sales concentrate attributing to overseas projects of the transportation
systems business and multiple projects of developmental nature for automobile development testing equipment focusedwith a view to the expansion of the market of the industrial systems business; and a temporary decrease in production
capacity in the process of integration of production into the Shiga Ryuo Plant commenced in February 2018 in theindustrial systems business.
3.

Details of Extraordinary Income (Gain on Sales of Investment Securities)
Toyo Denki recognized gain on sales of investment securities of 806 million yen in extraordinary income due to partial
sale of securities held by Toyo Denki.

4.

Details of Extraordinary Loss
(1) Expenses for integrating plants
Toyo Denki recognized expenses of 339 million yen for integrating its industry systems business and TD Drive
Manufacturing Co., Ltd. into the Shiga Ryuo Plant in extraordinary loss.
(2) Expenses for projects commemorating the 100th anniversary of the founding of Toyo Denki
Toyo Denki recognized expenses of 18 million yen for projects commemorating the 100th anniversary of its founding inextraordinary loss.