Summary of Consolidated Business Results for the First Half of Fiscal 2018
January 10, 2019
Company Name:
Toyo Denki Seizo K. K.
Stock Exchange: 1st Section of the Tokyo Stock Exchange
Stock Code:6505
URL
https://www.toyodenki.co.jp
Representative:
Kenzo Terashima, President
Inquiries:
Takatoshi Ohtsuka, General Manager, Management Planning Division
TEL: +81-3-5202-8122
Scheduled date of submission of quarterly financial report: January 11, Scheduled date of commencement of dividend payments: 2019
Preparation of quarterly financial report’s supplemental explanatory materials:
Yes
Holding of quarterly financial results briefing:
Yes (for institutional investors and analysts)(Note: Amounts less than one million yen in financial statements and the supplementary data are rounded down.)

1.

Consolidated Business Results for the First Half of Fiscal 2018 (June 1, 2018 to November 30, 2018)(1) Consolidated Operating Results(In millions of yen, except where noted; percentage figures show year-on-year increase or decrease.)
Net Sales

Operating Income%

Millions of yen

1H Fiscal 2018
19,6355.3
1H Fiscal 2017
18,6552.8(Note) Comprehensive income: 1H Fiscal 2018
1H Fiscal 2017

Millions of yen

(124)
(232)

Net Income per
Share
1H Fiscal 2018
1H Fiscal 2017

Ordinary Income%

Millions of yen(21)47(640) million yen
1,374 million yen%

Net Income Attributable to
Owners of the Parent
Millions of yen%(85.8)[- %][653.3%]146
256(42.8)
7.1

Diluted Net Income
per Share

Yen

Yen

15.62
27.12

-

(2) Consolidated Financial Position
Total Assets
Millions of yen

1H Fiscal 2018
As of May 31, 2018
(Reference) Shareholders’ equity:

2.

Shareholders’ Equity
Ratio (%)

Net Assets
Millions of yen

61,722
63,291
1H Fiscal 2018
As of May 31, 2018%24,41526,327
24,415 million yen
26,327 million yen

39.6
41.6

Dividend Information
1Q

Annual Dividend (Yen)
3Q
Fiscal Year-End

Interim
Yen

Yen

Total

Yen

Yen

As of May 31, 2018
0.00
50.00
Fiscal 2018
0.00
Fiscal 2018 (Forecast)
30.00(Note) Revisions to the most recently announced dividend forecasts: No(Note) Year-end dividends for Fiscal 2017: Ordinary dividend: 30.00 yen; commemorative dividend: 20.00 yen

50.00

3.

Yen

30.00

Consolidated Performance Forecast for Fiscal 2018 (June 1, 2018 to May 31, 2019)(In millions of yen, except where noted; percentage figures show year-on-year increase or decrease.)
Net Income
Attributable to
Net Income per
Net Sales
Operating Income
Ordinary Income
Owners of the Parent
Share (Yen)Millions of yen%

Millions of yen%

Yen

Full year
42,500
(0.1)
600
63.5
650
(Note) Revisions to the most recently announced performance forecast: Yes

Millions of yen%

Millions of yen

%

26.1

700

1.1

74.69

- 1 -

*Notes:(1) Transfers of major subsidiaries during the period:No(transfers of specified subsidiaries accompanied by changes in the scope of consolidation)
Newly included:- companies (name of the company)
Excluded:- companies (name of the company)(2) Application of Special Accounting Practices for the Preparation of Quarterly Consolidated Financial Statement :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 :No(b) Any changes other than (a) above

:

No

(c)

:

No

:

No

Changes in accounting estimates(d) Restatement(4) Shares outstanding (common stock)(a) Number of shares outstanding as of the endof the period (including treasury stock)(b) Number of shares of treasury stock as of theend of the period(c) Average number of shares for the period(fiscal year-to-date)November30, 2018

9,735,000
shares

As of May31, 2018

9,735,000
sharesNovember30, 2018

792,288 shares

As of May31, 2018

291,907 shares

November30, 2018

9,371,547
shares1H Fiscal
20179,444,009
shares* Quarterly financial reports are not subject to quarterly review procedures by a certified public
accountant or audit firm.
* Disclaimer concerning the Proper Use of Business Forecasts and Other Relevant Specific Items (Noteon Forward-looking Statements)
The forecasts of business results presented in this document are based on management’s assumptions
and beliefs in light 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 of Consolidated Performance Forecast and Other Forward-looking
Information” in the Accompanying Materials on page 3 for details relating to forecasts of operating
results (available in Japanese only).
*This report is an abridged translation of the Japanese summary consolidated business results, which has been preparedin accordance with accounting principles generally accepted Japan, for reference purpose only.

- 2 -Summary of Consolidated Business Results for the First Half of Fiscal 2018
Toyo Denki Seizo K. K. (6505)

2.

Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
End of the First Half of
Fiscal 2018
(November 30, 2018)

As of May 31, 2018
AssetsCurrent assets
Cash and cash equivalents

1,555

1,734

Trade notes and accounts receivable

16,96016,884

Electronically recorded monetary claims - operating

1,152

1,025

Products and finished goods

1,006

1,311

Work in process

3,506

3,725

Raw materials and stored goods

3,319

3,439

Advances

30

66

Other accounts receivable

547

382

Other

534

208

Allowance for doubtful accounts

(1)

(1)

28,611

28,777

11,981

12,132

Accumulated depreciation(4,707)(4,907)

Buildings and structures, net

7,274

7,224

7,742

7,927

Accumulated depreciation(6,310)(6,501)

Machinery and equipment, net

1,432

1,426

1,301

1,301

Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures

Machinery and equipment

Land
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment

320

235

3,953

4,221

(3,116)(3,300)837

920

11,166

11,108885

792

Intangible assets
Software
Software in progress

3

-

Other

15

15

Total intangible assets

904

807

19,681

18,309Investments and other assets
Investment securities
Deferred tax assets

95

151

2,845

2,580

Allowance for doubtful accounts

(12)

(12)

Total investments and other assets

22,60921,02934,68032,94563,291

61,722

Other

Total fixed assets
Total assets- 3 -Summary of Consolidated Business Results for the First Half of Fiscal 2018
Toyo Denki Seizo K. K. (6505)(Millions of yen)
End of the First Half of
As of May 31, 2018
Fiscal 2018
(November 30, 2018)
Liabilities
Current liabilities
Trade notes and accounts payable4,057Electronically recorded obligations - operating

6,295

5,781

Short-term debt

7,241

10,739

Income taxes payable

180

239

Consumption and other taxes payable

38

101

Accrued expenses

841

886

Advances received

188

73

Deposits received

229

220

2,925

Reserve for directors’ bonuses

25

12

Reserve for employees’ bonuses

814

815

Reserve for order losses

689

539

Other

1,716

876

Total current liabilities

22,32023,212

8,930

8,720

Long-term liabilities
Long-term debt
Long-term payables

35

43

Net defined benefit liability

3,862

3,855

Deferred tax liabilities

1,756

1,475

58

-

14,644

14,09436,96437,306

Capital stock

4,998

4,998

Capital surplus

3,177

3,177

Retained earnings

10,57910,253

Treasury stock(480)(1,279)18,274

17,149

8,111

7,352

Other
Total long-term liabilities
Total liabilities
Net assets
Shareholders’ equity

Total shareholders’ equity
Accumulated other comprehensive income
Unrealized holding gain on available-for-sale securities
Foreign currency translation adjustments

188

135

Adjustments of defined benefit plans

(247)

(222)

Total accumulated other comprehensive income

8,052

7,265

26,327

24,41563,291

61,722

Total net assets
Total liabilities and net assets- 4 -Summary of Consolidated Business Results for the First Half of Fiscal 2018
Toyo Denki Seizo K. K. (6505)(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income for the First Half

1H FY2017(June 1, 2017 to November
30, 2017)(Millions of yen)
1H FY2018(June 1, 2018 to November
30, 2018)

Net Sales

18,655

19,635

Cost of sales

14,887

16,030Gross profit

3,768

3,605

Selling, general and administrative expenses

4,000

3,729

Operating loss

(232)

(124)

Interest income

00Dividend income

171

181

Equity in profit of unconsolidated subsidiaries and affiliates

71-

Foreign exchange gains

50

13

Gain on reversal of environmental expenses

40-

Non-operating income

Miscellaneous income

41

31

Total non-operating income

374

227

Interest expenses

72

72

Equity in loss of unconsolidated subsidiaries and affiliates-

4

Loss on disposal of fixed assets

04Commission fee

10-

Miscellaneous loss

12

44

Total non-operating expenses

95

125

47

(21)

390

347

2

-

392

347

Expenses for commemorative events of the 100th anniversary-

20

Loss on sales of non-current assets

7-

Total extraordinary losses

7

20

Income before income taxes

432

305

Income taxes: Current

138

173

Income taxes: Deferred

38

(14)

Total income taxes

176

158

Net Income

256

146

Net Income Attributable to Owners of the Parent

256

146

Non-operating expenses

Ordinary income (loss)
Extraordinary income
Gain on sales of investment securities
Other
Total extraordinary income
Extraordinary loss

- 5 -Summary of Consolidated Business Results for the First Half of Fiscal 2018
Toyo Denki Seizo K. K. (6505)

Consolidated Statements of Comprehensive Income for the First Half

1H FY2017(June 1, 2017 to November
30, 2017)(Millions of yen)
1H FY2018(June 1, 2018 to November
30, 2018)

256

146

1,112

(758)

Foreign currency translation adjustments

(3)

(9)

Adjusted amounts of defined benefit plans
Share of other comprehensive income of affiliates to which theequity method is applied

25

24

(16)

(44)

Net Income
Other comprehensive income
Unrealized holding gain on available-for-sale securities

Total other comprehensive income
Comprehensive income

1,118

(787)

1,374

(640)

1,374

(640)

-

-

Comprehensive income attributable to:
Owners of the parent
Non-controlling interests- 6 -Summary of Consolidated Business Results for the First Half of Fiscal 2018
Toyo Denki Seizo K. K. (6505)(3) Consolidated Statements of Cash Flows
1H FY2017(June 1, 2017 to November
30, 2017)(Millions of yen)
1H FY2018(June 1, 2018 to November
30, 2018)

Income before income taxes

432

305

Depreciation and amortization

Cash flows from operating activities
487

821

Decrease in allowance for doubtful accounts

00Increase in reserve for employees’ bonuses

93

0

Increase (decrease) in net defined benefit liability

13

(6)

Increase (decrease) in reserve for order losses

93

(168)

(171)

(182)

Interest expenses

72

72

Loss on sales of property, plant and equipment

7

-

(390)

(347)

Interest and dividend income

Gain on sales of investment securities
Decrease (increase) in notes and accounts receivable-trade

(172)

280

Increase in inventories(2,434)(615)

Increase (decrease) in trade notes and accounts payable

1,267(1,708)

(12)

(114)

Decrease in advances received
Increase (decrease) in accrued expenses

(80)

42

Other

(585)

460

Subtotal(1,378)(1,162)

Interest and dividend income received

171

182

Interest expenses paid

(70)

(69)

Payments for corporate and other taxes

(483)

(54)

Cash flows from operating activities(1,761)(1,104)(939)(1,409)74-

Purchases of intangible assets

(64)

(41)

Purchases of investment securities

(163)

(7)

Proceeds from sales of investment securities

840

565

Payments of loans receivable

(70)

-

Payments for investments in capital of subsidiaries

(124)

-

Cash flows from investing activities
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment

Other

(3)

188

(451)

(704)

Increase in short-term loans payable, net

1,673

3,340

Repayment of long-term debt

(101)

(101)

(1)

(799)

(282)

(470)

Cash flows from investing activities
Cash flows from financing activities

Purchases of treasury stock
Cash dividends paid
Other
Cash flows from financing activities
Effect of exchange rate change on cash and cash equivalents

0

0

1,287

1,969

5

18

Increase (decrease) in cash and cash equivalents

(920)

178

Balance of cash and cash equivalents at the beginning of the period

2,091

1,555

Balance of cash and cash equivalents at the end of the period

1,170

1,734

- 7 -

Summary of Consolidated Business Results for the First Half of Fiscal 2018
Toyo Denki Seizo K. K. (6505)(4) Segment Information(Notes on going concern assumption)
Not applicable(Notes on significant changes in the amount of shareholders’ equity)
Not applicable(Segment Information)
Segment Information:
First Half of Fiscal 2017 (June 1, 2017 to November 30, 2017)
Information regarding Net Sales and Income (Loss) by Reporting Segment
Reporting Segment

Net Sales
Sales to third parties
Inter-segment sales andtransfers
Total
Segment profit (loss)

Note:(Millions of yen)AmountRecorded on
Adjustment
Quarterly
AmountConsolidated(Note 2)
Statements ofIncome (Note3)

Transportation
Systems

Industrial
Systems

Information
Equipment
Systems

Other(Note 1)

12,655

5,292

704

3

18,655-18,6550
12,655
1,140

1
5,293
(33)

704
34

372
375
22

373
19,029
1,163

(373)
(373)
(1,395)18,655
(232)

Total

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 1,395 million yen. This is comprised of anelimination of inter-segment sales and transfer amount at a loss of 4 million yen and corporate expenditure(a loss of 1,391 million yen) that is not allocated to each reporting segment. Corporate expenditure is
primarily comprised of selling, general and administrative expenses as well as research and development
costs that are not allocated to each reporting segment.
3. Segment profit (loss) has been adjusted with operating loss recorded under the quarterly consolidated
statements of income.

First Half of Fiscal 2018 (June 1, 2018 to November 30, 2018)
Information regarding Net Sales and Income (Loss) by Reporting Segment
Reporting Segment

Net Sales
Sales to third parties
Inter-segment sales andtransfers
Total
Segment profit (loss)(Millions of yen)AmountRecorded on
Quarterly
Adjustment
AmountConsolidated(Note 2)
Statements ofIncome (Note3)

Transportation
Systems

Industrial
Systems

Information
Equipment
Systems

Other(Note 1)

13,124

5,777

724

8

19,635-

19,63518
13,143
1,058

0
5,778
123

724
124

295
304
16

314
19,950
1,322

(314)
(314)
(1,446)

19,635
(124)

Total

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 1,446 million yen. This is comprised of anelimination of inter-segment sales and transfer amount at a loss of 2 million yen and corporate expenditure(a loss of 1,443 million yen) that is not allocated to each reporting segment. Corporate expenditure is- 8 -Summary of Consolidated Business Results for the First Half of Fiscal 2018
Toyo Denki Seizo K. K. (6505)

primarily comprised of selling, general and administrative expenses as well as research and development
costs that are not allocated to each reporting segment.
3. Segment profit (loss) has been adjusted with operating loss recorded under the quarterly consolidated
statements of income.

- 9 -Summary of Consolidated Business Results for the First Half of Fiscal 2018
Toyo Denki Seizo K. K. (6505)

3.

Supporting Materials for the Financial Results(1) Status of Production, Orders, and Sales(a)

Production Status

1H FY2017(June 1, 2017 to November 30, 2017)
Business segment
AmountShare(Millions of yen)(%)
Transportation Systems
12,811
69.8
Industrial Systems
5,357
29.2
Information Equipment Systems
186
1.0
Other
Total
18,356100.0
Notes: 1. Amounts are based on sales prices.
2. Amounts are exclusive of consumption and other taxes.

1H FY2018(June 1, 2018 to November 30, 2018)
AmountShare(Millions of yen)(%)
12,961
68.2
5,333
28.1
699
3.7
18,995100.0(b) Status of Orders Received
1H FY2017(June 1, 2017 to November 30, 2017)
Business segment
Orders Received
Balance(Millions of yen)
(Millions of yen)Transportation Systems
12,622
25,773
Industrial Systems
5,736
7,593
Information Equipment Systems
1,382
1,590
Other
3
Total
19,74534,958Notes: 1. Amounts are based on sales prices.
2. Amounts are exclusive of consumption and other taxes.
(c)

1H FY2018(June 1, 2018 to November 30, 2018)
Orders Received
Balance(Millions of yen)
(Millions of yen)
11,192
21,821
7,392
8,305
621
425
8
19,21630,552

Sales Status

1H FY2017(June 1, 2017 to November 30, 2017)
Business segment
AmountShare(Millions of yen)(%)
Transportation Systems
12,655
67.8
Industrial Systems
5,292
28.4
Information Equipment Systems
704
3.8
Other
3
0.0
Total
18,655100.0
Notes: 1. Amounts are based on sales prices.
2. Amounts are exclusive of consumption and other taxes.

- 10 -

1H FY2018(June 1, 2018 to November 30, 2018)
AmountShare(Millions of yen)(%)
13,124
66.8
5,777
29.4
724
3.7
8
0.0
19,635100.0