January 12, 2023

Consolidated Financial Results for the Six Months Ended November 30, 2022
(Under Japanese GAAP)
Company name:Toyo Denki Seizo K.K.
Listing:
Tokyo Stock Exchange
Securities code:6505
URL
https://www.toyodenki.co.jp
Representative:
Akira Watanabe, Representative Director, President
Inquiries:
Jun Nukina, Operating Officer, General Manager, Management Planning Division
Telephone:+81-3-5202-8122
Scheduled date to file quarterly securities report:
January 13, 2023
Scheduled date to commence dividend payments:―
Preparation of supplementary material on quarterly financial results:: Yes
Holding of quarterly financial results briefing:: Yes(Yen amounts are rounded down to millions, unless otherwise noted.)1.

Consolidated financial results for the six months ended November 30, 2022 (from June 1,
2022 to November 30, 2022)(1) Consolidated operating results (cumulative)
Net sales(Percentages indicate year-on-year changes.)
Profit attributable toOrdinary profit
owners of parent

Operating profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Six months ended
November 30, 2022

13,821

(6.6)

(80)

-

197

-

26

(85.7)

November 30, 2021

14,803(11.5)

(362)

-

(83)

-

186

(58.8)

Note: Comprehensive income

For the six months ended November 30, 2022: ¥841 million [-%]For the six months ended November 30, 2021: ¥(695) million [-%]

Basic earnings per share

Diluted earnings per
share

Yen

Yen

Six months ended
November 30, 2022

2.98

-

November 30, 2021

20.82

-

(2) Consolidated financial position
Total assets

As ofNovember 30, 2022
May 31, 2022
Reference: Equity

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen%

48,314

22,585

46.7

46,91622,01246.9

As of November 30, 2022: ¥22,585 million
As of May 31, 2022: ¥22,012 million

2.

Cash dividends
Annual dividends per shareFirst quarter-end

Fiscal year ended
May 31, 2022
Fiscal year ending
May 31, 2023

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Yen

Yen

-

0.00

-

30.00

30.00

-

0.00
-

30.00

30.00

Fiscal year ending
May 31, 2023
(Forecast)

Note:

3.

Fiscal year-end

Total

Revisions to the forecast of cash dividends most recently announced: None

Consolidated financial results forecast for the fiscal year ending May 31, 2023 (from June
1, 2022 to May 31, 2023)
Net sales

Fiscal year ending
May 31, 2023

(Percentages indicate year-on-year changes.)
Profit attributable to Basic earnings per
Ordinary profit
share
owners of parent

Operating profit

Millionsof yen%Millionsof yen%Millionsof yen%Millionsof yen%Yen

34,000

12.7

450

161.8

700

(8.6)

800

-

89.48

Note: Revisions to the financial results forecast most recently announced: None

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change inscope of consolidation):
None
Newly included: -- companies (Company name)
Excluded:-- companies (Company name)(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements
None:(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(4) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of November 30, 2022
As of May 31, 2022

(ii)

9,735,000
9,735,000

Number of treasury shares at the end of the period
As of November 30, 2022
As of May 31, 2022

794,988794,608(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Six months ended November 30, 2022
Six months ended November 30, 2021

8,940,204
8,940,722* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an
audit corporation.
* Proper use of earnings forecasts, and other special matters(Notes on forward-looking statements)
The above forecasts are based on information available as of the date of publication of this document, and actual
results may differ from the forecasts due to variable factors in the future. Please refer to “Explanation ofConsolidated Financial Results Forecast and Other Forward-looking Information” on page 3 of the Attachment for
details of the financial results forecast (available in Japanese only).
* This document has been translated from a part of the Japanese original for reference purposes only. In the event ofany discrepancy between this translated document and the Japanese original, the original shall prevail.

Toyo Denki Seizo K.K. (6505) Financial Results for the Six Months Ended November 30, 2022

2.

Quarterly Consolidated Financial Statements and Significant Notes Thereto(1)

Quarterly Consolidated Balance Sheet(Millions of yen)
As of May 31, 2022

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract assets
Electronically recorded monetary claims - operating
Merchandise and finished goods
Work in process
Raw materials and supplies
Advance payments to suppliers
Accounts receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

As of November 30, 2022

4,449
12,091
1,136
501
3,077
2,688
8
25
212
(1)
24,1894,061
13,523
906
519
3,834
2,566
33
21
353
(1)
25,816

10,326(6,341)
3,985
8,185(7,605)
579
1,270
7
4,977
(4,497)
479
6,322

9,949
(6,203)
3,745
8,193(7,735)
458
1,269
13
5,046
(4,590)
455
5,943

87
14
101

79
13
93

12,471
883
2,953
(6)
16,302
22,726
46,916

13,184
534
2,749
(7)
16,46022,49748,314

Toyo Denki Seizo K.K. (6505) Financial Results for the Six Months Ended November 30, 2022
(Millions of yen)
As of May 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Accrued expenses
Income taxes payable
Accrued consumption taxes
Contract liabilities
Deposits received
Provision for bonuses for directors (and other officers)
Provision for bonuses
Provision for loss on orders received
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Long-term accounts payable - other
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

As of November 30, 2022

1,610
4,205
585
688
306
82
47
190
6
699
970
176
9,569

1,954
3,903
1,785
794
189
43
78
194
3
685
883
136
10,652

11,17338
4,113
6
15,33324,903

10,88130
4,158
515,07625,728

4,998
3,177
11,122(1,282)18,016

4,998
3,177
10,880(1,282)
17,774

3,913
144
(61)
3,996
22,012
46,916

4,556
304
(49)
4,811
22,58548,314

Toyo Denki Seizo K.K. (6505) Financial Results for the Six Months Ended November 30, 2022
(2)

Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income
Quarterly Consolidated Statement of Income
Six months ended November 30, 2022
(Millions of yen)Six months ended
November 30, 2021

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating loss
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using the equity method
Foreign exchange gains
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Loss on abandonment of non-current assets
Miscellaneous losses
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sale of investment securities
Gain on reversal of foreign currency translation adjustment
Gain on sale of non-current assets
Total extraordinary income
Extraordinary loss
Loss on valuation of investment securities
Business structural reform expenses
Total extraordinary loss
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to owners of parent

Six months ended
November 30, 2022

14,803
11,754
3,048
3,411
(362)

13,821
10,613
3,208
3,288
(80)

0
105
121
63
26
316

0
123
89
77
18
310

30
0
7
38
(83)

26
0
5
32
197

366
94
—
460

405
—
150
556

59
—
59
317
127
4
131
186
186

—
478
478
275
185
63
249
26
26

Toyo Denki Seizo K.K. (6505) Financial Results for the Six Months Ended November 30, 2022
Quarterly Consolidated Statement of Comprehensive Income
Six months ended November 30, 2022
(Millions of yen)Six months ended
November 30, 2021
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted
for using the equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of parent
Non-controlling interests

Six months ended
November 30, 2022
186

26

(888)
2
12

642
—
12

(8)

160

(881)
(695)

815
841

(695)
—

841
—

Toyo Denki Seizo K.K. (6505) Financial Results for the Six Months Ended November 30, 2022
(3)

Quarterly Consolidated Statement of Cash Flows(Millions of yen)Six months ended
November 30, 2021

Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for loss on orders received
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using the equity
methodLoss (gain) on sale of property, plant and equipment
Loss (gain) on sale of investment securities
Gain on reversal of foreign currency translation adjustment
Loss (gain) on valuation of investment securities
Business structural reform expenses
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in contract liabilities
Increase (decrease) in accrued expenses
Increase (decrease) in accrued consumption taxes
Other
SubtotalInterest and dividends received
Interest paid
Income taxes refund (paid)
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of short-term and long-term investment securities
Proceeds from sale of short-term and long-term investment
securities
Proceeds from liquidation of subsidiaries and associates
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Other
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

Six months ended
November 30, 2022

317
613
(0)
21
27
50
(105)
30

275
396
0
(14)
44
(87)
(124)
26

(121)

(89)

—
(366)
(94)
59
—
(887)
583
(585)
18
54
(173)
(38)
(597)
105
(31)
(101)
(624)

(150)
(405)
—
—
478
(1,201)
(652)
41
17
105
(39)
(133)
(1,511)
124
(26)
(297)
(1,711)

(239)
0
(16)
(6)

(137)
266
(13)
(7)

466

622

283
(17)
470

—
(50)
680

700
(292)
(0)
(268)
(0)
137
23
7
3,964
3,971

1,200
(292)
(0)
(267)
(1)
637
4
(388)
4,449
4,061

Toyo Denki Seizo K.K. (6505) Financial Results for the Six Months Ended November 30, 2022

(4)

Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption)
Not applicable(Notes on Significant Changes in Shareholders’ Equity)
Not applicableToyo Denki Seizo K.K. (6505) Financial Results for the Six Months Ended November 30, 2022
(Segment Information, etc.)[Segment Information]
Six months ended November 30, 2021
Information regarding net sales and profit (loss) by reporting segment(Millions of yen)
Reporting segments

Transportation
Business

Net sales
Net sales to externalcustomers
Intersegment sales andtransfers
Total
Segment profit (loss)
Notes:

1.
2.

3.

ICT Solution
Business

Industry
Business

Other(Note 1)

Total

Adjustments(Note 2)

Amountrecorded onquarterly
consolidated
statement ofincome(Note 3)

10,110

4,379

309

4

14,803—14,803

10

0

—

171

182

(182)

—-

10,120

4,379

309

176

14,986(182)

14,803

1,034

(98)

49

(9)

976

(1,339)(362)“Other” is a business segment that is not included in reporting segments, and includes the worker dispatchingbusiness.
Adjustments to segment profit (loss) of ¥(1,339) million are the elimination of intersegment transactions of ¥(0)
million and corporate expenses of ¥(1,338) million that are not attributable to reporting segments. Corporate
expenses are primarily general and administrative expenses as well as research and development expenses that are
not attributable to reporting segments.
Segment profit (loss) has been adjusted with operating loss recorded on the quarterly consolidated statement ofincome.

Six months ended November 30, 2022
1.
Information regarding net sales and profit (loss) by reporting segment(Millions of yen)
Reporting segments

Transportation
Business

Net sales
Net sales to externalcustomers
Intersegment sales andtransfers
Total
Segment profit (loss)
Notes:

1.
2.

3.

2.

Industry
Business

ICT Solution
Business

Other(Note 1)

Total

Adjustments(Note 2)

Amountrecorded onquarterly
consolidated
statement ofincome(Note 3)

9,097

4,218

503

2

13,821—

13,821

16

0

—

153

170

(170)

—

9,113

4,219

503

155

13,991(170)

13,821

1,196

(77)

121

(5)

1,236

(1,316)(80)“Other” is a business segment that is not included in reporting segments, and includes the worker dispatchingbusiness.
Adjustments to segment profit (loss) of ¥(1,316) million are the elimination of intersegment transactions of ¥(0)
million and corporate expenses of ¥(1,316) million that are not attributable to reporting segments. Corporate
expenses are primarily general and administrative expenses as well as research and development expenses that are
not attributable to reporting segments.
Segment profit (loss) has been adjusted with operating loss recorded on the quarterly consolidated statement ofincome.

Matters regarding changes, etc. in reporting segments
The reporting segment originally named “Information Equipment Systems” has been renamed the “ICT Solution Business”
from the three months ended August 31, 2022. This name change has no impact on the segment information.
As a result of this change, the segment information for the six months ended November 30, 2021 is also presented under the
new name.

Toyo Denki Seizo K.K. (6505) Financial Results for the Six Months Ended November 30, 2022

3.

Other

(1) Status of Production, Orders, and Sales(i) Production status
Business segment

Six months ended November 30, 2021

Six months ended November 30, 2022

Amount(Millions of yen)Amount(Millions of yen)

Share
(%)

Share
(%)

Transportation Business

9,250

68.8

9,555

69.1

Industry Business

4,021

29.9

3,927

28.4

ICT Solution Business

172

1.3

337

2.4

Other

—

—

—

—

Total

13,443100.0

13,820100.0

Note: Amounts are based on sales prices.
(ii) Status of orders received
Business segment

Six months ended November 30, 2021

Six months ended November 30, 2022

Orders received(Millions of yen)Orders received(Millions of yen)Order backlog(Millions of yen)Order backlog(Millions of yen)Transportation Business

8,907

20,263

10,64022,353

Industry Business

4,952

5,988

5,757

7,739

ICT Solution Business

348

144

670

432

Other

4

—

2

—

Total

14,213

26,396

17,07030,524

Note: Amounts are based on sales prices.
(iii) Sales status
Business segment

Six months ended November 30, 2021

Six months ended November 30, 2022

Amount(Millions of yen)Amount(Millions of yen)

Share
(%)

Share
(%)

Transportation Business

10,110

68.3

9,097

65.8

Industry Business

4,379

29.6

4,218

30.5

ICT Solution Business

309

2.1

503

3.6

Other

4

0.0

2

0.0

Total

14,803100.0

13,821100.0

Note: Amounts are based on sales prices.