July 12, 2016

Summary of Consolidated Business Results for Fiscal 2015
For the fiscal year ended May 31, 2016
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
Akira Watanabe, Operating Officer and General Manager, Management Planning
Division
TEL +81-3-5202-8122
Scheduled date of convention of ordinary general meeting of shareholders: August 26, 2016
Scheduled date of commencement of dividend payments:
August 29, 2016
Scheduled date of submission of financial report:
August 29, 2016
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 2015
(June 1, 2015 to May 31, 2016)(1) Consolidated Operating Results(In millions of yen, except where noted; percentage figures show year-on-year increase or decrease.)

Net Sales
Fiscal 2015
Fiscal 2014

39,746
39,617

Operating Income

0.3%
13.3%

Net Income
Attributable to
Owners of the Parent(27.4%)
889(19.5%)
98.5%
1,105
71.6%

Ordinary Income

2.7%
1,492
48.3%
2,056
(Note) Comprehensive income: Fiscal 2015: (925) million yen [－%]
Fiscal 2014: 5,468 million yen [284.6%]
Diluted Net
Income per
Share (Yen)－－Net Income per
Share (Yen)
18.47
22.94

Fiscal 2015
Fiscal 2014

1,638
1,596

(Reference) Equity method investment gain or loss for:Net Income to
Shareholders’Equity Ratio(%) 3.7
5.0

Ordinary
Income to Total
Assets Ratio(%) 2.9
4.2

Operating
Income to Net
Sales Ratio(%) 4.1
4.0

Fiscal 2015: 76 million yen
Fiscal 2014: 50 million yen(2) Consolidated Financial Position(In millions of yen, except where noted)

Total Assets
As of May 31, 2016
As of May 31, 2015

50,23353,041Net Assets
23,67624,895

Shareholders’ Equity
Ratio (%)
47.1
46.9

Net Assets per Share(Yen)
491.41516.61(Reference) Shareholders’ equity: As of May 31, 2016: 23,676 million yen
As of May 31, 2015: 24,895 million yen(3) Consolidated Cash Flows(In millions of yen, except where noted)

Fiscal 2015
Fiscal 2014

Cash Flow fromOperating Activities

Cash Flow from
Investing Activities

Cash Flow from
Financing Activities

1,135
1,514

(937)
(988)

(1,341)
18

Cash and Cash
Equivalents
at the End of
the Fiscal Year
2,401
3,570

2. Dividend Information

Fiscal 2014
Fiscal 2015
Fiscal 2016
(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

26.2
32.5

Dividend on
Equity Ratio
1.3
1.2

－

6.00

3. Consolidated Performance Forecast for Fiscal 2016 (June 1, 2016 to May 31, 2017)(In millions of yen, except where noted; percentage figures show year-on-year increase or decrease.)

Net SalesFirst half
Full year

20,00043,000

6.7%
8.2%

Operating Income

Ordinary Income

500
1,900

400
1,800

(18.3)%
15.9%(43.6)%
20.6%

Net Income
Attributable to
Owners of the
Parent270 (42.9)%
1,200
34.9%

Net Income
per Share
(Yen)
5.60
24.90

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, 2016: 48,675,000 shares
May 31, 2015: 48,675,000 shares(b) Number of shares of treasury stock as of the end of the period:
May 31, 2016: 493,478 shares
May 31, 2015: 484,737 shares(c) Average number of shares for the period (fiscal year-to-date):
Fiscal 2015: 48,184,987 sharesFiscal 2014: 48,194,735 shares

(Reference) Summary of Non-Consolidated Business Results

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

Fiscal 2015
Fiscal 2014

Net Sales
33,231(3.9)%
34,594
12.9%

Operating Income
972(8.1)%
1,057
62.7%

Fiscal 2015
Fiscal 2014

Net Income per Share
(Yen)
10.69
17.15

Diluted Net Income
per Share (Yen)－－

Ordinary Income
1,070 (36.8)%
1,692
102.1%Net Income
515 (37.7)%
826
66.8%

(2) Non-Consolidated Financial Position(In millions of yen, except where noted)

Total Assets
As of May 31, 2016
As of May 31, 2015
(Reference) Shareholders’ equity:

45,78849,019Net Assets
19,97821,519

Shareholders’ Equity
Ratio (%)
43.6
43.9

Net Assets per Share(Yen)
414.65446.56

As of May 31, 2016: 19,978 million yen
As of May 31, 2015: 21,519 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 ........................................................................... 85.
Consolidated Financial Statements ................................................................................................................. 9(1) Consolidated Balance Sheets .......................................................................................................................... 9(2) Consolidated Statements of Income and Comprehensive Income ................................................................ 11(3) Consolidated Statements of Changes in Net Assets ...................................................................................... 13(4) Consolidated Statements of Cash Flows ....................................................................................................... 15-1-

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 2015, the fiscal year ended May 31, 2016, with regard to the economic environment surrounding the Toyo
Denki Group overseas, the economic growth slowed down in China, ASEAN countries and resource-rich nations,although the economy in the United States continued to recover. Economic growth also slumped in oil-producing
nations due to significant drops in crude oil prices. In Japan, corporations became cautious with capital
expenditures mainly as a result of growing uncertainty over the future following the advance in the appreciation ofyen. Even under such circumstances, investments in railway infrastructure in China, ASEAN countries, and Middle
Eastern countries remained at a high level.
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 which started in fiscal 2014.
The Toyo Denki Group’s performance in fiscal 2015, the second fiscal year of the plan, was as follows.
Orders received increased 2.1% compared with the previous fiscal year to 39,890 million yen. This overall
result reflected increases in orders received in the Transportation Systems segment and the Information Equipment
Systems segment, despite a decrease in orders in the Industrial Systems segment.
Net sales increased 0.3% year on year to 39,746 million yen mainly due to a surge in the Industrial Systems
segment.
From a profit perspective, operating income increased 2.7% compared with the previous fiscal year to 1,638
million yen, mainly due to increased profit in the Industrial Systems segment. Primarily due to the posting of loss
on foreign currency exchange of 418 million yen from a progressively stronger yen, ordinary income decreased
27.4%, to 1,492 million yen, and net income attributable to owners of the parent decreased 19.5% to 889 million
yen.
Information by business segment is presented as follows.
Transportation Systems
Orders received increased 9.4% compared with the previous fiscal year to 27,092 million yen, led by upturns bothin Japan and outside Japan.
Net sales in this segment totaled 26,757 million yen, a 0.4% decrease from the previous year, due to a decrease
outside Japan, despite an increase in Japan.
Segment profit decreased 4.9% compared with the previous fiscal year to 2,964 million yen.
Industrial Systems
Orders received decreased 14.2% compared with the previous fiscal year to 11,421 million yen due to decreasedorders for testing equipment for automotive development, processing equipment, and social infrastructures.
Net sales increased 3.6% year on year to 12,027 million yen due to increases in sales of testing equipment for
automotive development and outside Japan, despite a decrease in those for social infrastructure.
Segment profit totaled 1,019 million yen, a 20.2% increase compared with the previous fiscal year.
Information Equipment Systems
Orders received in this segment increased 39.0% to 1,369 million yen, due to an increase in railway station
operating equipment.
Net sales in this segment decreased 15.4% year on year to 954 million yen mainly due to a decrease in sales ofremote monitoring systems.
Segment profit increased 34.1% compared with the previous fiscal year to 95 million yen.
Note: Net sales data by business segment represents sales to third parties and is exclusive of inter-segment sales andtransfers.

-2-(b) Outlook for the Next Fiscal YearAs for the business environment surrounding the Company for the time being, while corporate intention for capital
expenditures is expected to further decline mainly due to the results of the referendum in the United Kingdom, theimpact of slowdown in the economic growth in China, ASEAN countries and resource-rich nations and concerns
about further appreciation of the yen resulting from such slowdown, investments in railway infrastructure areprojected to remain at a high level outside Japan and replacement demand is expected to become active in Japan.
Based on this recognition, the Group anticipates net sales of 43.0 billion yen, operating income of 1.9 billion yen,ordinary income of 1.8 billion yen and net income attributable to owners of the parent of 1.2 billion yen for the next
fiscal year by promoting the principal measures in line with the fundamental policies of the medium-term
management plan.
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, 2016 stood at 50,233 million yen, a decrease of 2,807 million yen compared with the endof the previous fiscal year. Despite an increase in inventories of 924 million yen, the decrease in total assets waslargely attributable to decreases in investment securities of 2,930 million yen, attributable to factors such as thedecrease in the market price of held listed securities, and cash and cash equivalent of 1,169 million yen.
(Liabilities)
Total liabilities amounted to 26,556 million yen, a decrease of 1,589 million yen compared with the previous fiscal
year end. Despite an 881 million yen increase in trade notes and accounts payable and a 257 million yen increase inaccrued expenses, the decrease in total liabilities was largely attributable to decreases in borrowings of 1,118
million yen, deferred tax liabilities of 982 million yen, and income taxes payable of 398 million yen.
(Net Assets)
Net assets as of May 31, 2016 stood at 23,676 million yen, a decrease of 1,218 million yen compared with the endof the previous fiscal year. This decrease was largely attributable to a 1,847 million yen decrease in unrealized
holding loss on available-for-sale securities, despite a 600 million yen increase in retained earnings.
(b) Status of cash flows
The balance of consolidated cash and cash equivalents as of May 31, 2016 stood at 2,401 million yen, a decrease of
1,169 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 1,135 million yen. Major cash outflows were an increase of
972 million yen in trade notes and accounts payable and an increase of 274 million yen in accrued expenses.
Principal cash inflow was income before income taxes at 1,404 million yen.
Cash flows from investing activities
Net cash used in investing activities totaled 937 million yen for the fiscal year under review and mainly comprised
funds used for the purchases of property, plant and equipment at 451 million yen and the purchases of intangible
assets at 336 million yen.
Cash flows from financing activities
Net cash used in financing activities was 1,341 million yen. Major cash outflows were repayment of long-term debt
at 794 million yen and cash dividends paid at 295 million yen.

-3-

Trends in cash flow indices are as follows.
Fiscal
2011
39.5
31.4
－
－

Fiscal
2012
43.7
34.0
9.2
5.0

Fiscal
2013
43.2
40.3
2.5
21.5

Fiscal
2014
46.9
42.3
6.2
10.8

Fiscal
2015
47.1
31.3
7.3
8.6

Shareholders’ equity ratio
Shareholders’ equity ratio based on market capitalization
Ratio of interest-bearing liabilities to cash flows
Interest coverage ratio
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, 2017
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 has reviewed “NEXT 100: Beyond 100 years,” the medium-term management plan
publicly announced on July 10, 2014, and formulated “NEXT 100: Beyond 100 years, Ver.2,” the medium-term
management plan set to conclude at the end of fiscal 2017 (on May 31, 2018), by taking into account changing
business conditions, hurdles that need to be addressed since the previous announcement and other factors. The
Group is proactively working to promote measures under the fundamental policies described below for further
growth towards the achievement of its long-term vision.
For more information, please refer to “Toyo Denki Seizo Announces Revision to Medium-Term Management Plan
‘NEXT 100: Beyond 100 years,’” which was released today.
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 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, Ver. 2,” its medium-term
management plan, and is formulating and promoting the principal measures as follows in line with the fundamental
policies.
The specific measures are presented as follows. The measures with “(added)” stated at their end indicate
principal measures added under “NEXT 100: Beyond 100 Years, Ver. 2.”(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- Increase earnings potential by strengthening promotion of productivity reform in Transportation Systems
segment (added)- Stabilize earnings potential by establishing medium- to long-term vision of business structure in Industrial
Systems segment (added)- 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 production capacity based on productivity reform in Transportation Systems segment (added)- Integrate production system based on vision of business structure in Industrial Systems segment (added)- 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-6-- 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-7-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 willappropriately respond to the application of the International Financial Reporting Standards (IFRS) consideringvarious circumstances in Japan and overseas.

-8-

5. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of May 31, 2015

As of May 31, 2016

AssetsCurrent assets
Cash and cash equivalents

3,570

2,401

Trade notes and accounts receivable

14,233

13,790605

965

Products and finished goods

1,283

1,490

Work in process

2,962

3,172

Raw materials and stored goods

2,149

2,657

23

26

Other accounts receivable

13

273

Deferred tax assets

660

517

Other

132

229

Allowance for doubtful accounts

(40)

(2)

25,59325,520Electronically recorded monetary claims - operating

Advances

Total current assets
Fixed assets
Property, plant and equipment

7,058

7,171

Accumulated depreciation(4,320)(4,536)

Buildings and structures, net

2,737

2,634

6,792

6,728

(5,930)(6,013)

862

715

289

289

Buildings and structures

Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
Land

227

269

3,272

3,281

(2,786)(2,828)

486

452

4,603

4,361

Software

204

199

Other

144

344

Total intangible assets

348

544

20,326

17,396

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

Investments and other assets
Investment securities
Deferred tax assets
Other

7

55

2,173

2,368

Allowance for doubtful accounts

(12)

(12)

Total investments and other assets

22,49519,80727,447

24,71253,041

50,233

Total fixed assets
Total assets-9-

(Millions of yen)
As of May 31, 2015

As of May 31, 2016

Trade notes and accounts payable

5,116

3,742

Electronically recorded obligations - operating

3,022

5,277

Short-term debt

1,783

1,017

Income taxes payable

652

253

Consumption and other taxes payable

249

87

Accrued expenses

992

1,250

Advances received

288

82

Deposits received

230

221

Reserve for directors’ bonuses

41

37

Reserve for employees’ bonuses

927

928

Reserve for order losses

301

294

Liabilities
Current liabilities

Allowance for environmental development

65

-

Other

307

389

13,97913,583

Total current liabilities
Long-term liabilities

7,640

7,288

Long-term payables

141

157

Deferred tax liabilities

2,618

1,636

Net defined benefit liability

3,725

3,852

40

37

14,166

12,97228,14526,556

Capital stock

4,998

4,998

Capital surplus

3,177

3,177

Retained earnings

8,698

9,298

Treasury stock

(171)

(175)

Total shareholders’ equity

16,702

17,299

8,317

6,469

Long-term debt

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

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

259

260

Remeasurements of defined benefit plans

(383)

(351)

Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets- 10 -

8,193

6,377

24,89523,67653,041

50,233

(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
For the fiscal year
ended May 31, 2015

For the fiscal year
ended May 31, 2016

Net sales

39,61739,746

Cost of sales

30,33430,626Gross profit

9,282

9,119

Selling, general and administrative expenses

7,686

7,480

Operating income

1,596

1,638

0

0

203

233

50

76

363

-

Life insurance dividend income

7

69

Miscellaneous income

26

67

Total non-operating income

652

447

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

Non-operating expenses

138

127

Loss on foreign currency exchange-

418

Loss on disposal of fixed assets

4

19Delinquent charge for delay in delivery

25-

Miscellaneous loss

24

28

Interest expense

192

593

2,056

1,492

Gain on sales of fixed assets

12-

Total extraordinary income

12

-

-

72

Total non-operating expenses
Ordinary income
Extraordinary income

Extraordinary loss
Fixed assets removal expenses
Impairment loss
Loss on sales of investment securities
Provision of allowance for environmental development
Other

30

-

-

11

24

-

-

4

Total extraordinary losses

54

88

Income before income taxes

2,014

1,404

Current

954

368

Deferred

(45)

145

Income taxes:

908

514

Net income

1,105

889

Net income attributable to owners of the parent

1,105

889

Total income taxes- 11 -

(Consolidated Statements of Comprehensive Income)(Millions of yen)
For the fiscal year
ended May 31, 2015

For the fiscal year
ended May 31, 2016

Net income

1,105

889

Other comprehensive income
Unrealized holding gain (loss) on available-for-salesecurities
Deferred gains or losses on hedges

4,327(1,847)26-

Foreign currency translation adjustments

(11)

48

Remeasurements of defined benefit plans
Share of other comprehensive income of affiliates towhich the equity method is applied
Total other comprehensive income

(84)

31

104

(48)

4,362

(1,815)

5,468

(925)

5,468

(925)

-

-

Comprehensive income
Comprehensive income attributable to:
Owners of the parent
Non-controlling interests- 12 -

(3) Consolidated Statements of Changes in Net Assets
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 attributable toowners of the parent

-

-

1,105

-

1,105

Acquisition of treasury stock

-

-

-

(4)

(4)

Net changes of items otherthan shareholders’ equity

-

-

-

-

-

Total change during fiscal
period under review

-

-

816

(4)

812

4,998

3,177

8,698

(171)

16,702

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 attributable toowners of the parent

-

-

-

-

-

1,105

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

5,174

Balance as of the end of fiscal
period under review

8,317

-

259

(383)

8,193

24,895

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 -

For the fiscal year ended May 31, 2016 (June 1, 2015 to May 31, 2016)(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

8,698

(171)

16,702

-

-

-

-

-

4,998

3,177

8,698

(171)

16,702Distribution ofretained earnings

-

-

(289)

-

(289)

Net income attributable toowners of the parent

-

-

889

-

889

Acquisition of treasury stock

-

-

-

(3)

(3)

Net changes of items otherthan shareholders’ equity

-

-

-

-

-

Total change during fiscal
period under review

-

-

600

(3)

597

4,998

3,177

9,298

(175)

17,299Cumulative 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

8,317

-

259

(383)

8,193

24,895

-

-

-

-

-

-

8,317

-

259

(383)

8,193

24,895Distribution ofretained earnings

-

-

-

-

-

(289)

Net income attributable toowners of the parent

-

-

-

-

-

889

Acquisition of treasury stock

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

-

-

-

-

-

(3)

Net changes of items otherthan shareholders’ equity(1,847)-0

31(1,815)(1,815)

Total change during fiscal
period under review(1,847)-0

31(1,815)(1,218)

6,469

-

260

(351)

6,377

23,676

Balance as of the end of fiscal
period under review- 14 -

(4) Consolidated Statements of Cash Flows(Millions of yen)
For the fiscal year
ended May 31, 2015

For the fiscal year
ended May 31, 2016

Cash flows from operating activities
Income before income taxes

2,014

1,404

Depreciation and amortization

881

850

Increase (decrease) in allowance for doubtful accounts

6

(37)

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

12

0

21

(65)

(106)

116

Interest and dividends income

(203)

(233)

138

127

Interest expenses-

11

Impairment loss
Decrease (increase) in notes and accounts receivabletrade
Decrease (increase) in inventories

30-(1,925)

(3)

737

(957)

Increase (decrease) in trade notes and accounts payable

2,765

972

Loss (gain) on sales of investment securities

Increase (decrease) in reserve for order losses

171

1

Increase (decrease) in advances received

(14)

(205)

Increase (decrease) in accrued expenses(2,802)

274

Other

391

(87)

Subtotal

2,116

2,169

219

241

(139)

(131)

(Payments for) refund of corporate and other taxes(681)(1,144)

Net cash provided by operating activities

1,514

1,135

Purchases of property, plant and equipment

(830)

(451)

Purchases of intangible assets

(126)

(336)

Purchases of investment securities

(13)

(13)

-

19

-

(196)

Interest and dividends income received
Interest expenses paid

Cash flows from investing activities

Proceeds from sales of investment securities
Payments for investments in capital of subsidiaries andassociates
Other

(18)

41

Net cash used in investing activities

(988)

(937)

- 15 -

(Millions of yen)
For the fiscal year
ended May 31, 2015

For the fiscal year
ended May 31, 2016

Cash flows from financing activities
Increase (decrease) in short-term loans payable, net

(114)

(247)

Increase in long-term debt

1,500

-

Repayment of long-term debt

(1,073)

(794)

(4)

(3)

(287)

(295)

(0)

(0)

18

(1,341)

28

(26)

573

(1,169)

2,997

3,570

3,570

2,401

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- 16 -