January 12, 2021
To Whom It May Concern
Company Name

Toyo Denki Seizo K.K.

Representative

Akira Watanabe, President(Code: 6505, 1st Section of the Tokyo StockExchange)

Inquiries

Toshihito Nakanishi, Operating Officer, GeneralManager, Management Planning Division(Tel. 03-5202-8122)

Notice of Difference between Consolidated Business Forecast and Results for the First Half of Fiscal Year Ending May 2021
and Recording of Extraordinary Income as Well as Dividend Forecast
Toyo Denki Seizo K.K. (hereinafter “Toyo Denki”) today announces the consolidated business results for the first half of the fiscal year ending
May 2021 and the difference from the forecast for the same period, which was publicized on November 27, 2020, as well as the recording ofextraordinary income as follows.
Additionally, please be advised that the meeting of the Board of Directors, held today, decided on a dividend forecast for the fiscal year ending
May 2021.
1. Difference between Consolidated Business Forecast and Results for the First Half of Fiscal Year Ending May 2021
(1) Difference between consolidated business forecast and results for the first half of the current fiscal year (June 1, 2020 to November 30,2020)
Net income
Net sales

Operating

Ordinary income

incomeattributable toNet income perowners of theshareparent
Millions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

17,500

40

230

400

44.73

Results (B)16,720

177

355

451

50.49

Change (B−A)

(780)

137

125

51

Change (%)

(4.5)

342.5

54.3

12.7

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

19,392

302

380

470

52.63

Previous forecast (A)(Reference) Results for the first halfof the previous fiscal year
(First half of the fiscal year endedMay 2020)(2) Reason for the difference
Although net sales decreased as some projects were postponed at the end of the second quarter of the fiscal year ending May 2021,operating income was not affected considerably. During the same period, some projects that had been planned to register as sales in thethird quarter of the fiscal year ending May 2021 were moved up, and this increased net sales and operating income. As a whole, netsales were 16,720 million yen as opposed to the forecast of 17,500 million yen (down 4.5%), and operating income reached 177 million
yen against the forecast of 40 million yen (up 342.5%). For the same reason, ordinary income was 355 million yen while the forecastwas 230 million yen (up 54.3%).
Please be advised that the consolidated business full-year forecast for the fiscal year ending May 2021 remains unchanged. In case theneed arises for any revision including due to other factors, Toyo Denki will make an announcement without delay.
2. Recording of Extraordinary Income (Gain on Sales of Investment Securities)(1) Reason for sale of investment securities
Toyo Denki sold a portion of its investment securities to improve asset efficiency and strengthen its financial position.
(2) Sales period
From June 18, 2020 to November 12, 2020
(3) Details of the salei. Type of assets soldOne stock name of listed securities owned by Toyo Denki
ii. Gain on sales of investment securities
407 million yen(4) Outlook for the future
Toyo Denki will continue to strive to reduce its cross holdings.
The above gain on sales of investment securities was incorporated into the consolidated business forecast for the first half of the fiscal
year ending May 2021, publicized on November 27, 2020.
3. Dividend Forecast(1) Dividend forecast for the fiscal year ending May 2021
Annual dividend
End of the second quarter
Previous forecast
New forecast
Current year results

Fiscal year-end

Total

Undecided

Undecided

30.00 yen

30.00 yen

30.00 yen

30.00 yen

0.00 yenPrevious year results(Fiscal year ended May

0.00 yen

2020)(2) Reason
The dividend forecast for the fiscal year ending May 2021 has remained undecided. This is because it was difficult to reasonably calculate
the impact of the new coronavirus on the business performance of Tokyo Denki. However, taking its dividend policy, its financial
position and other factors into comprehensive consideration on the basis of the consolidated business forecast for the fiscal year ending
May 2021, announced on November 27, 2020, Toyo Denki today announces it has set the fiscal year-end dividend forecast per share at30 yen.