January 12, 2017

Summary of Consolidated Business Results for the First Half 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:
January 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 Half of Fiscal 2016
(June 1, 2016 to November 30, 2016)(1) Consolidated Operating Results(In millions of yen, except where noted; percentage figures show year-on-year increase or decrease.)

Net Sales
1H Fiscal 2016
1H Fiscal 2015

18,147
18,749(Note) Comprehensive income:(3.2)%(1.7)%

Operating Income179611

Net Income
Attributable toOwners of the Parent(52.8)%239(49.5)%(18.8)%
473(8.2)%

Ordinary Income(70.7)%
4.7%3347091H Fiscal 2016: 182 million yen [(11.5)%]
1H Fiscal 2015: 206 million yen [(92.7)%]

Net Income
per Share (Yen)

Diluted Net Income
per Share (Yen)

25.13
49.10－－

1H Fiscal 2016
1H Fiscal 2015

* 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 November 30, 2016
As of May 31, 2016

51,16950,233

Net Assets
23,26923,676

Shareholders’ Equity
Ratio (%)
45.5
47.1

(Reference) Shareholders’ equity: As of November 30, 2016: 23,269 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: No30.00

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: Yes

Net 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 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: 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):
November 30, 2016: 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:
November 30, 2016: 289,801 shares
May 31, 2016: 98,695 shares(c) Average number of shares for the period (fiscal year-to-date):
1H Fiscal 2016: 9,513,764 shares
1H Fiscal 2015: 9,637,484 shares* The Company conducted a share consolidation of its common shares at the ratio of 5 shares to 1 share effective
December 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)
As of May 31, 2016

End of the First Half of Fiscal 2016
(November 30, 2016)Assets
Current assets
Cash and cash equivalents

2,401

2,114

Trade notes and accounts receivable

13,79014,056965

1,130

Products and finished goods

1,490

1,819

Work in process

3,172

3,479

Raw materials and stored goods

2,657

2,533

Electronically recorded monetary claims - operating

Advances

26

50

Deferred tax assets

517

699

Other accounts receivable

273

22

Other229

349

Allowance for doubtful accounts

(2)

(2)

25,52026,252

7,171

7,287

Accumulated depreciation(4,536)(4,601)

Buildings and structures, net

2,634

2,686

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

6,728

6,903

(6,013)(6,112)

715

791

Land

289

289

Construction in progress

269

256

Machinery and equipment
Accumulated depreciation
Machinery and equipment, net

Other
Accumulated depreciation

3,281

3,343

(2,828)(2,863)

452

479

4,361

4,503

Software199

201

Software in progress

333

458

Other, net
Total property, plant and equipment
Intangible assets

Other

11

11

Total intangible assets

544

672

17,396

17,521

Investments and other assets
Investment securities
Deferred tax assets
Other5557

2,368

2,174

Allowance for doubtful accounts

(12)

(12)

Total investments and other assets

19,807

19,741

24,712

24,91650,23351,169Total fixed assets
Total assets-1-(Millions of yen)
As of May 31, 2016

End of the First Half of Fiscal 2016
(November 30, 2016)

Liabilities
Current liabilities
Trade notes and accounts payable

3,742

3,466

Electronically recorded obligations - operating

5,277

4,663

Short-term debt

1,017

2,446

Income taxes payable

253

354

Consumption and other taxes payable

8781

Accrued expenses

1,250

1,190

Advances received

82436

Deposits received

221

220

Reserve for directors’ bonuses

3722

Reserve for employees’ bonuses

928

1,052

Reserve for order losses

294

372

Other
Total current liabilities

389

575

13,583

14,883

7,288

7,187

Long-term liabilities
Long-term debt

157

254

Net defined benefit liability

3,852

3,893

Deferred tax liabilities

1,636

1,644

37

37

12,97213,016

26,55627,900Capital stock

4,998

4,998

Capital surplus

3,177

3,177

Retained earnings

9,298

9,248

Long-term payables

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

Treasury stock(175)(476)

Total shareholders’ equity

17,29916,948

6,469

6,560

260

86

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

(351)

(326)

Total accumulated other comprehensive income

6,377

6,321

23,67623,26950,23351,169Total net assets
Total liabilities and net assets-2-(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statements of Income for the First Half of Fiscal 2016)(Millions of yen)
1H FY2015
1H FY2016(June 1, 2015 to November 30, 2015) (June 1, 2016 to November 30, 2016)
Net sales

18,74918,147

Cost of sales

14,38814,078Gross profit

4,361

4,069

Selling, general and administrative expenses

3,749

3,890

611

179

00169

164

28

11-9

Operating income
Non-operating income
Interest income
Dividend income
Equity in profit of unconsolidated subsidiaries
and affiliates
Foreign exchange gains
Miscellaneous income

58

34

Total non-operating income

255

220

Interest expense

6155

Loss on disposal of fixed assets

02

Loss on foreign currency exchange

81-

Miscellaneous loss

146

Total non-operating expenses

157

64709

334

Loss on sales of fixed assets-23

Loss on sales of investment securities

2-

Non-operating expenses

Ordinary income
Extraordinary loss

Total extraordinary losses

223

Income before income taxes

707

311

Current

285

286

Income taxes:

Deferred(51)(214)

Total income taxes

234

72

Net income

473

239

Net income attributable to owners of the parent

473

239-3-

(Consolidated Statements of Comprehensive Income)(Millions of yen)
1H FY2015
1H FY2016(June 1, 2015 to November 30, 2015) (June 1, 2016 to November 30, 2016)
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

473

239(319)

91

3(10)

2325

26(162)

(267)

(56)

206

182

206

182--Comprehensive income attributable to:
Owners of the parentNon-controlling interests-4-(3) Consolidated Statements of Cash Flows(Millions of yen)
1H FY2015
1H FY2016(June 1, 2015 to November 30, 2015) (June 1, 2016 to November 30, 2016)
Cash flows from operating activities
Income before income taxes

707

311

Depreciation and amortization
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in reserve for employees’
bonuses
Increase (decrease) in net defined benefit
liability
Increase (decrease) in reserve for order losses

398

371(37)

(0)

32124

1140

Interest and dividends incomeInterest expenses
Loss (gain) on sales of property, plant andequipment
Decrease (increase) in notes and accounts
receivable-trade
Decrease (increase) in inventories
Increase (decrease) in trade notes and accounts
payableIncrease (decrease) in advances received

(27)

78

(169)

(164)

61

55

-

23

(1,208)(428)(1,080)

(521)

654

(885)

(169)

353

144

(51)

Other(419)29

Subtotal(1,102)(663)

Increase (decrease) in accrued expenses

Interest and dividends income received

169

172

Interest expenses paid
(Payments for) refund of corporate and othertaxes
Net cash provided by operating activities

(64)

(56)

(709)

14

(1,707)(533)

Purchases of property, plant and equipment

(170)

(366)

Purchases of intangible assets

(238)

(133)

(6)

(6)

Cash flows from investing activities

Purchases of investment securities
Other

(98)

26

Net cash used in investing activities

(514)

(480)

1,752

1,500

(399)

(181)

(2)

(300)

(287)

(289)

(0)

(0)

1,062

728

(0)

(1)

(1,159)

(287)

3,570

2,401

2,411

2,114

Cash flows from financing activities
Increase (decrease) in short-term loans payable,
net
Repayment of long-term debt
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 thebeginning of the period
Balance of cash and cash equivalents at the end ofthe period-5-

(Segment Information)
First Half of Fiscal 2015 (June 1, 2015 to November 30, 2015)
Information regarding Net Sales and Income (Loss) by Reporting Segment
Reporting SegmentTransportation Industrial Information
Systems
Systems Equipment
Systems

Other1

Total(Millions of yen)AmountRecorded on
Adjustment
Quarterly
Amount2
Consolidated
Statementsof Income3

Net sales－18,749

293

(293)

－

291 19,043(293)

18,749

Sales to third parties

12,735

5,683

328

Inter-segment sales
and transfers

22－

288

12,737

5,686

328

Total

2 18,749

1,335
506
(21)
8 1,828(1,216)611
Segment profit (loss)
Notes:
1. The “Other” segment includes operations not included in reporting segments such as the dispatch oftemporary staff.
2. The segment profit (loss) adjustment amount is a loss of 1,216 million yen. This is comprised of anelimination of inter-segment sales and transfer amount of 0 million yen and corporate expenditure (a loss of1,216 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 income recorded under the quarterly consolidated
statements of income.

-6-

First Half of Fiscal 2016 (June 1, 2016 to November 30, 2016)
Information regarding Net Sales and Income (Loss) by Reporting Segment
Reporting Segment
Transportation Industrial Information
Systems
Systems Equipment Other1
SystemsTotal(Millions of yen)AmountRecorded on
Adjustment
Quarterly
Amount2
Consolidated
Statementsof Income3

Net sales－

18,147

341

(341)

－

336 18,489(341)

18,147

Sales to third parties

12,7654,909

468

Inter-segment sales
and transfers

62－

333

12,772

4,912

468

Total

2 18,147

1,312
1534725 1,538(1,359)
179
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 1,359 million yen. This is comprised of an elimination ofinter-segment sales and transfer amount of 0 million yen and corporate expenditure (a loss of 1,359 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.

-7-2. Supporting Materials for the Financial Results(1) The Status of Production, Orders, and Sales(a) Production Status
1H FY2015(June 1, 2015 to November 30, 2015)
Business segment
Millions of yen
Share (%)
Transportation Systems
13,151
69.2
Industrial Systems
5,565
29.3
Information Equipment
294
1.5
Systems
Other－－Total
19,010100.0
Notes:
1. Amounts are based on sales prices.
2. Amounts are exclusive of consumption and other taxes.

1H FY2016(June 1, 2016 to November 30, 2016)
Millions of yen
Share (%)
12,901
73.4
4,434
25.2
250

1.4－
17,585－100.0(b) Status of Orders Received
Business segment

1H FY2015(June 1, 2015 to November 30, 2015)
Orders Received
Balance(Millions of yen)
(Millions of yen)
12,862
24,602
5,866
6,817Transportation Systems
Industrial Systems
Information Equipment
401
171
Systems
Other2－Total19,13331,590Notes:
1. Amounts are based on sales prices.
2. Amounts are exclusive of consumption and other taxes.

1H FY2016(June 1, 2016 to November 30, 2016)
Orders Received
Balance(Millions of yen)
(Millions of yen)
13,68625,080
5,923
7,042
1,309

1,353

2
20,922－33,477(c) Sales Status
Business segment

1H FY2015(June 1, 2015 to November 30, 2015)
Millions of yen
Share (%)
12,735
67.9
5,683
30.3

Transportation Systems
Industrial Systems
Information Equipment
328
Systems
Other2
Total
18,749Notes:
1. Amounts are based on sales prices.
2. Amounts are exclusive of consumption and other taxes.

-8-

1H FY2016(June 1, 2016 to November 30, 2016)
Millions of yen
Share (%)
12,765
70.3
4,909
27.1

1.8

468

2.6

0.0100.0

218,1470.0
100.0