April 12, 2017

Summary of Consolidated Business Results for the First Three Quarters of Fiscal 2016
For the fiscal year ending May 31, 2017
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
Takatoshi Ohtsuka, General Manager, Management Planning Division
TEL +81-3-5202-8122
Scheduled date of submission of quarterly financial report:
April 13, 2017
Scheduled date of commencement of dividend payments:－Preparation of quarterly financial report supplemental explanatory materials: Yes
Holding of quarterly 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 the First Three Quarters of Fiscal 2016
(June 1, 2016 to February 28, 2017)(1) Consolidated Operating Results(In millions of yen, except where noted; percentage figures show year-on-year increase or decrease.)

Net Sales
3Q Fiscal 2016
3Q Fiscal 2015

27,06028,648(5.5)%(0.7)%

Operating Income241817(70.5)%434(10.5)%725(Note) Comprehensive income: 3Q Fiscal 2016: 227 million yen [－%]
3Q Fiscal 2015: (1,625) million yen [－%]Net Income
per Share (Yen)

Diluted Net Incomeper Share (Yen)

24.22
34.27

－－

3Q Fiscal 2016
3Q Fiscal 2015

Net Income
Attributable toOwners of the Parent(40.1)%
229(30.4)%(42.2)%
330(54.6)%

Ordinary Income* The Company conducted a share consolidation of its common shares at the ratio of 5 shares to 1 share effective
December 1, 2016. Net income per share is calculated on the assumption that the share consolidation wasconducted at the beginning of the previous fiscal year.

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

Total Assets
As of February 28, 2017
As of May 31, 2016

53,201
50,233(Reference) Shareholders’ equity:

Net Assets
23,31823,676

Shareholders’ Equity
Ratio (%)
43.8
47.1

As of February 28, 2017: 23,318 million yen
As of May 31, 2016: 23,676 million yen

2. Dividend Information
1Q

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

Fiscal 2015－
Fiscal 2016－Fiscal 2016
(Forecast)(Note) Revisions to the most recently announced dividend forecasts: No

30.00

Total
6.00
30.00

* The Company conducted a share consolidation of its common shares at the ratio of 5 shares to 1 share effective
December 1, 2016. Dividend information for fiscal 2015 is the actual amount paid before the shareconsolidation. For further details, please refer to “Disclaimer concerning the Proper Use of Business Results
Forecasts and Other Relevant Specific Items 2.”

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 Sales

Operating Income

Ordinary Income

Full year
41,0003.2%
1,600(2.4)%
1,700
13.9%
(Note) Revisions to the most recently announced performance forecast: NoNet Income
Attributable toOwners of theParent
1,100
23.6%

Net Incomeper Share(Yen)
115.62* Net income per share reflects the effect of share consolidation. For further details, please refer to “Disclaimer
concerning the Proper Use of Business Results Forecasts and Other Relevant Specific Items 2.”

Notes:(1) Transfers of major subsidiaries during the period (transfers of specified subsidiaries accompanied by changes
in the scope of consolidation): No(2) Application of Special Accounting Practices for the Preparation of Quarterly Consolidated FinancialStatement: 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: Yes(b) Any changes other than (a) above: No(c) Changes in accounting estimates: No(d) Restatement: No(4) Shares outstanding (common stock)(a) Number of shares outstanding as of the end of the period (including treasury stock):February 28, 2017: 9,735,000 shares
May 31, 2016: 9,735,000 shares(b) Number of shares of treasury stock as of the end of the period:
February 28, 2017: 290,073 shares
May 31, 2016: 98,695 shares(c) Average number of shares for the period (fiscal year-to-date):
3Q Fiscal 2016: 9,491,196 shares
3Q Fiscal 2015: 9,637,199 shares* The Company conducted a share consolidation of its common shares at the ratio of 5 shares to 1 share effectiveDecember 1, 2016. Number of shares outstanding (common stock) is calculated on the assumption that the shareconsolidation was conducted at the beginning of the previous fiscal year.
Statements Regarding the Implementation Status of Quarterly Review ProceduresThis quarterly financial report is not subject to quarterly review procedures as prescribed under the Financial
Instruments and Exchange Act. As of the date of quarterly financial report disclosure, quarterly review proceduresfor the quarterly financial statements pursuant to the aforementioned Act were not yet completed.
Disclaimer concerning the Proper Use of Business Results Forecasts and Other Relevant Specific Items
1. The forecasts of business results presented in this document are based on management’s assumptions andbeliefs 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” inAccompanying Materials on page 3 for details relating to operating results forecasts (available in Japaneseonly).
2. The Company conducted a share consolidation of its common shares at the ratio of 5 shares to 1 share effective
December 1, 2016. If the share consolidation were not taken into account, the dividend forecast andconsolidated performance forecast for fiscal 2016 would be as follows:(1) Dividend forecast for fiscal 2016
Year-end:
6 yen(2) Consolidated performance forecast for fiscal 2016
Net income per share
Full year:
23.12 yen

1. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
End of the First Three Quarters ofFiscal 2016 (February 28, 2017)

As of May 31, 2016
AssetsCurrent assets
Cash and cash equivalents

2,401

2,485

Trade notes and accounts receivable

13,79014,036965

999

Products and finished goods

1,490

2,130

Work in process

3,172

3,888

Raw materials and stored goods

2,657

2,513

Electronically recorded monetary claims - operating

Advances

2644

Deferred tax assets

517

511

Other accounts receivable

273

35

Other229

396

(2)

(2)

25,52027,040

7,171

7,339

Accumulated depreciation(4,536)(4,659)Buildings and structures, net

2,634

2,680

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

6,728

6,779

(6,013)(6,010)

715

769

Land

289

1,345

Construction in progress

269

131

Machinery and equipment
Accumulated depreciation
Machinery and equipment, net

Other
Accumulated depreciation

3,281

3,384

(2,828)(2,913)

452

471

4,361

5,399

Software

199

181

Software in progress

333

714

Other, net
Total property, plant and equipment
Intangible assets

Other1111

Total intangible assets

544

907

17,396

17,656

Investments and other assets
Investment securitiesDeferred tax assets
Other55

59

2,368

2,150

Allowance for doubtful accounts

(12)

(12)

Total investments and other assets

19,807

19,854

24,712

26,161

50,23353,201

Total fixed assets
Total assets-1-(Millions of yen)
End of the First Three Quarters ofFiscal 2016 (February 28, 2017)

As of May 31, 2016
Liabilities
Current liabilities
Trade notes and accounts payable

3,742

3,817

Electronically recorded obligations - operating

5,277

4,961

Short-term debt

1,017

4,809

Income taxes payable

253

121

Consumption and other taxes payable

8748

Accrued expenses

1,250

1,145

Advances received

82

390

Deposits received

221

236

Reserve for directors’ bonuses

3734

Reserve for employees’ bonuses

928

485

Reserve for order losses

294

473

Other
Total current liabilities

389

363

13,583

16,887

7,288

7,141

Long-term liabilities
Long-term debt

157

276

Net defined benefit liability

3,852

3,874

Deferred tax liabilities

1,636

1,665

37

38

12,972

12,996

26,55629,883

Capital stock

4,998

4,998

Capital surplus

3,177

3,177

Retained earnings

9,298

9,225

Long-term payables

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

Treasury stock(175)(476)

Total shareholders’ equity

17,29916,924

6,469

6,657

260

49

Accumulated other comprehensive income
Unrealized holding gain on available-for-sale securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans

(351)

(313)

Total accumulated other comprehensive income

6,377

6,393

23,67623,31850,23353,201

Total net assets
Total liabilities and net assets-2-(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statements of Income for the First Three Quarters of Fiscal 2016)(Millions of yen)
3Q FY2015
3Q FY2016(June 1, 2015 to February 29, 2016) (June 1, 2016 to February 28, 2017)
Net sales

28,64827,060

Cost of sales

22,272

21,075Gross profit

6,375

5,985

Selling, general and administrative expenses

5,558

5,744817

241

Operating income
Non-operating income

00

Dividend income
Equity in profit of unconsolidated subsidiaries
and affiliates
Miscellaneous income

22121465417754

Total non-operating income364

311

Interest income

Non-operating expenses

95

85

Loss on disposal of fixed assets

53

Loss on foreign currency exchange

3404Interest expense

Miscellaneous loss

16

24

Total non-operating expenses

456

118

725

434

Ordinary income
Extraordinary loss
Fixed assets removal expenses

72－

Loss on sales of fixed assets－23

Loss on sales of investment securities

11－

Total extraordinary losses

83

23

Income before income taxes

641

411

Current

176

228

Income taxes:

Deferred

134

(47)

Total income taxes

311

181

Net income

330

229

Net income attributable to owners of the parent330229-3-

(Consolidated Statements of Comprehensive Income)(Millions of yen)
3Q FY2015(June 1, 2015 to February 29, 2016)

3Q FY2016(June 1, 2016 to February 28, 2017)

330

229

(2,021)188

64(13)

35

38(33)(215)(1,955)(2)(1,625)227(1,625)227－－

Net income
Other comprehensive income
Unrealized holding gain (loss) on available-forsale securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income ofaffiliates to which the equity method is applied
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of the parent
Non-controlling interests-4-(3) Segment Information
The First Three Quarters of Fiscal 2015 (June 1, 2015 to February 29, 2016)
Information regarding Net Sales and Income (Loss) by Reporting Segment
Reporting Segment
Transportation
Systems

Industrial
Systems

Information
Equipment
Systems

Sales to third parties

19,2828,709

651

Inter-segment sales
and transfers

273－422

19,310

8,712

651

Other1

Total(Millions of yen)AmountRecorded on
Adjustment
Quarterly
Amount2
Consolidated
Statements ofIncome3

Net sales

Total－28,648453(453)－427 29,102(453)

28,648

4 28,648

1,789823
18
10 2,643(1,825)
817
Segment profit(Notes)
1. The “Other” segment includes operations not included in reporting segments such as the dispatch oftemporary staff.
2. The segment profit adjustment amount is a loss of 1,825 million yen. This is comprised of an elimination ofinter-segment sales and transfer amount of 0 million yen and corporate expenditure (a loss of 1,826 millionyen) 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 eachreporting segment.
3. Segment profit has been adjusted with operating income recorded under the quarterly consolidated
statements of income.

-5-The First Three Quarters of Fiscal 2016 (June 1, 2016 to February 28, 2017)
Information regarding Net Sales and Income (Loss) by Reporting Segment
Reporting Segment
Transportation
Systems

Industrial
Systems

Information
Equipment
Systems

Sales to third parties

18,583

7,322

1,150

Inter-segment salesand transfers

192－

18,602

7,324

1,150

Other1Total(Millions of yen)AmountRecorded onAdjustment
Quarterly
Amount2
Consolidated
Statements ofIncome3

Net sales

Total

－

27,060518(518)－

501 27,579(518)27,060

4 27,060

496

1,740
223
243
37 2,245(2,003)
241
Segment profit(Notes)1. The “Other” segment includes operations not included in reporting segments such as the dispatch oftemporary staff.
2. The segment profit adjustment amount is a loss of 2,003 million yen. This is comprised of an elimination ofinter-segment sales and transfer amount of 0 million yen and corporate expenditure (a loss of 2,003 millionyen) 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 eachreporting segment.
3. Segment profit has been adjusted with operating income recorded under the quarterly consolidated
statements of income.

-6-2. Supporting Materials for the Financial Results(1) The Status of Production, Orders, and Sales(a) Production Status
Business segment

3Q FY2015(June 1, 2015 to February 29, 2016)
Millions of yen
Share (%)

Transportation Systems
19,245
Industrial Systems
8,563
Information Equipment
428
Systems
Other－Total
28,237(Notes)
1. Amounts are based on sales prices.
2. Amounts are exclusive of consumption and other taxes.

3Q FY2016(June 1, 2016 to February 28, 2017)
Millions of yen
Share (%)

68.2
30.3

19,411
7,159

71.9
26.5

1.5

425

1.6

－
100.0－
26,996－100.0(b) Status of Orders Received
Business segment

3Q FY2015(June 1, 2015 to February 29, 2016)
Orders Received
Balance(Millions of yen)
(Millions of yen)Transportation Systems
19,85324,997Industrial Systems
7,632
5,557
Information Equipment
769
215
Systems
Other4－Total
28,26030,770(Notes)
1. Amounts are based on sales prices.
2. Amounts are exclusive of consumption and other taxes.

3Q FY2016(June 1, 2016 to February 28, 2017)
Orders ReceivedBalance(Millions of yen)
(Millions of yen)

20,4888,070

26,806
6,778

1,491

853

430,055－
34,437(c) Sales Status
Business segment

3Q FY2015(June 1, 2015 to February 29, 2016)
Millions of yen
Share (%)

Transportation Systems
19,282
Industrial Systems
8,709
Information Equipment
651Systems
Other4
Total
28,648(Notes)
1. Amounts are based on sales prices.
2. Amounts are exclusive of consumption and other taxes.

-7-

3Q FY2016(June 1, 2016 to February 28, 2017)
Millions of yen
Share (%)

67.3
30.4

18,583
7,322

68.7
27.1

2.3

1,150

4.3

0.0
100.0

4
27,0600.0
100.0