Summary of Consolidated Business Results for the First Quarter of Fiscal 2020
October 12, 2020
Toyo Denki Seizo K.K.
Stock Exchange: 1st Section of the Tokyo Stock Exchange
6505
URL
https://www.toyodenki.co.jp
Akira Watanabe, President
Toshihito Nakanishi, Operating Officer, General Manager, Management Planning Department
TEL: +81-3-5202-8122
Scheduled date of submission of quarterly financial report: October 13, 2020
Scheduled date of commencement of dividend payments: —Preparation of quarterly financial report supplemental explanatory materials: Yes
Holding of quarterly financial results briefing: No
Company Name:
Stock Code:
Representative
Inquiries:(Note: Amounts less than one million yen in financial statements and supplementary data are rounded down.)

1.

Consolidated Business Results for the First Quarter of Fiscal 2020 (June 1, 2020 to August 31, 2020)(1)

Consolidated Operating Results
Net sales

Operating Income

Millions of yen%

1Q Fiscal 2020
7,848
1Q Fiscal 2019
8,841
(Note) Comprehensive income:Millions of yen(11.2)
1.7
1Q Fiscal 2020
1Q Fiscal 2019

Net Income per Share
1Q Fiscal 2020
1Q Fiscal 2019(2)

Millions of yen%

Millions of yen%169—
265
(51)
—
(39)
(815) million yen [-%]
(171) million yen [-%]

%

—
—

315
91

245.9
—

Diluted Net Incomeper ShareYenYen

35.24
10.19

—
—

Consolidated Financial Position
Total Assets

Shareholders’ Equity
Ratio

Net Assets

Millions of yen

As of August 31, 2020
As of May 31, 2020
(Reference) Shareholders’ equity:2.

(Percentage figures show year-on-year increase or decrease.)
Net Income Attributable toOrdinary Income
Owners of the Parent

Millions of yen%

54,06323,09955,16524,183As of August 31, 2020 23,099 million yen
As of May 31, 2020
24,183 million yen

42.7
43.8

Dividend Information
Annual Dividend
1QInterimYen

3Q
Yen

Fiscal 2019—
0.00
Fiscal 2020—
Fiscal 2020 (Forecast)—(Notes) 1. Revisions to the most recently announced dividend forecast: No
2. The dividend forecast for Fiscal 2020 is currently undecided.

Fiscal Year-End

Total

Yen

Yen

Yen

—

30.00

30.00

———

3. Consolidated Performance Forecast for Fiscal 2020 (June 1, 2020 to May 31, 2021)
Amid the novel coronavirus spreading globally, some orders received by the Company were also affected, which makesit difficult to reasonably quantify the degree of the impact on the Company's performance. Therefore, the consolidated
performance forecast for Fiscal 2020 is undecided at this moment. As soon as it becomes possible to reasonably make aperformance forecast going forward, the Company will announce such immediately.
(Note) Revisions to the most recently announced performance forecast: No

* Notes:(1) Transfers of major subsidiaries during the period: No(Transfers of specified subsidiaries accompanied by changes in the scope of consolidation)
Newly included: - companies (name of the company)
Excluded: - companies (name of the company)(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: No(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):

1Q Fiscal 2020

9,735,000 sharesFiscal 2019

9,735,000 shares(b) Number of shares of treasury stock as of theend of the period:

1Q Fiscal 2020

793,528 sharesFiscal 2019

793,403 shares(c) Average number of shares for the period(fiscal year-to-date):

1Q Fiscal 2020

8,941,537 shares

1Q Fiscal 2019

8,942,033 shares*

Quarterly financial reports are not subject to quarterly review procedures by a certified public accountant or audit firm.

*

Disclaimer concerning the proper use of business results forecasts and other relevant specific items(Note on forward-looking statements)
The forecasts for business results presented in this document are based on management’s assumptions and beliefs in light ofcurrently available information. Toyo Denki cautions readers that due to a variety of factors actual results may differ materiallyfrom forecasts. Please refer to “Explanation of Consolidated Performance Forecast and Other Forward-looking Information” in theAccompanying Materials on page 3 for details relating to forecasts of operating results (available in Japanese only).

*This report is an abridged translation of the Japanese summary of consolidated business results, which has been prepared inaccordance with accounting principles generally accepted in Japan, for reference purpose only.

Summary of Consolidated Business Results for the First Quarter of Fiscal 2020
Toyo Denki Seizo K.K. (6505)

2.

Consolidated Financial Statements(1)

Consolidated Balance Sheets(Millions of yen)
Fiscal 2019
(As of May 31, 2020)

AssetsCurrent assets
Cash and cash equivalents
Trade notes and accounts receivable
Electronically recorded monetary claims - operating
Products and finished goods
Work in process
Raw materials and stored goods
Advances
Other accounts receivable
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Software
Software in progress
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets

1Q Fiscal 2020
(As of August 31, 2020)

3,293
14,135
1,538
756
3,424
2,996
13
39
86(0)
26,284

4,047
13,936
940
846
3,767
3,362
1794
95
(1)
27,106

12,269(5,515)
6,753
8,179(7,120)
1,059
1,301
86
4,654
(3,929)724
9,925

12,280(5,618)6,661
8,273(7,208)
1,064
1,301
90
4,716
(3,999)
716
9,834

462
14
14
490

411
14
14
440

15,434
170
2,865
(6)
18,46328,88055,165

13,647
192
2,848
(6)
16,681
26,95754,063Summary of Consolidated Business Results for the First Quarter of Fiscal 2020
Toyo Denki Seizo K.K. (6505)(Millions of yen)
Fiscal 2019
(As of May 31, 2020)
Liabilities
Current liabilities
Trade notes and accounts payable
Electronically recorded obligations - operating
Short-term debt
Accrued expenses
Income taxes payable
Consumption and other taxes payable
Advances received
Deposits received
Reserve for directors’ bonuses
Reserve for employees’ bonuses
Reserve for order losses
OtherTotal current liabilities
Long-term liabilities
Long-term debt
Long-term payablesDeferred tax liabilities
Net defined benefit liability
Other
Total long-term liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Unrealized holding gains on available-for-sale securities
Foreign currency translation adjustments
Adjustments of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

1Q Fiscal 2020
(As of August 31, 2020)

2,224
5,877
2,207606
334
3104519836876
732
218
13,669

1,930
5,766
3,885
590
81
62
74
339
9451
850
240
14,281

12,344
25
930
4,010
3
17,31230,981

12,140
17
475
4,044
3
16,68230,964

4,998
3,177
11,610(1,280)18,505

4,998
3,177
11,657(1,281)
18,552

5,727
79
(129)
5,677
24,18355,165

4,593
71
(118)
4,546
23,09954,063(2)Summary of Consolidated Business Results for the First Quarter of Fiscal 2020
Toyo Denki Seizo K.K. (6505)
Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income for the First Quarter

8,841
7,147
1,694
1,746(51)(Millions of yen)
1Q Fiscal 2020
(June 1, 2020 toAugust 31, 2020)
7,848
5,974
1,873
1,703
169

0120
203144

0132
—
6139

24
—0105
2132
(39)

1780
513
44
265

214
214
174
38
44
83
91
91

206
206
471
136
20156
315
315

1Q Fiscal 2019
(June 1, 2019 toAugust 31, 2019)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividend income
Equity in profit of unconsolidated subsidiaries and affiliatesMiscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Equity in loss of unconsolidated subsidiaries and affiliates
Loss on disposal of fixed assets
Foreign exchange losses
Miscellaneous loss
Total non-operating expenses
Ordinary income (loss)
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Income before income taxes
Income taxes: Current
Income taxes: Deferred
Total income taxes
Net income
Net income attributable to owners of the parent

Summary of Consolidated Business Results for the First Quarter of Fiscal 2020Toyo Denki Seizo K.K. (6505)
Consolidated Statements of Comprehensive Income for the First Quarter

91(Millions of yen)
1Q Fiscal 2020
(June 1, 2020 toAugust 31, 2020)
315

(311)
1411(1,133)
171122(25)

(262)
(171)

(1,130)
(815)

(171)
—

(815)
—

1Q Fiscal 2019
(June 1, 2019 toAugust 31, 2019)
Net income
Other comprehensive income
Unrealized holding gains on available-for-sale securities
Foreign currency translation adjustments
Adjusted amounts of defined benefit plans
Share of other comprehensive income of affiliates to which
the equity method is applied
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of the parent
Non-controlling interests

Summary of Consolidated Business Results for the First Quarter of Fiscal 2020
Toyo Denki Seizo K.K. (6505)(3)

Notes on Consolidated Financial Statements(Notes on Going Concern Assumption)
Not applicable(Notes on Significant Changes in the Amount of Shareholders’ Equity)
Not applicable(Segment Information)[Segment Information]
1Q Fiscal 2019 (June 1, 2019 to August 31, 2019)
Information regarding Net Sales and Income (Loss) by Reporting Segment
Reporting Segment

Net sales
Sales to third parties
Inter-segment sales
and transfers
Total
Segment profit (loss)(Notes)1.
2.

3.

(Millions of yen)AmountRecorded on
Adjustment
Consolidated
AmountStatements(Note 2)of Income(Note 3)

Transportation
Systems

Industrial
Systems

Information
Equipment
Systems

Other(Note 1)

Total

5,566

2,905

367

1

8,841

—

8,841

40—

141

146

(146)

—

5,570

2,906

367

143

8,988

(146)

8,841

354

195

893642(694)(51)

The “Other” segment includes operations not included in reporting segments such as the dispatch of temporary staff.
The segment profit (loss) adjustment amount is a loss of 694 million yen. This is comprised of an elimination of intersegment sales and transfer amount of a loss of 0 million yen and corporate expenditure (a loss of 695 million yen)that is not allocated to each reporting segment. Corporate expenditure is primarily comprised of selling, general andadministrative expenses, as well as research and development costs that are not allocated to each reporting segment.
Segment profit (loss) has been adjusted with operating loss recorded under the quarterly consolidated statements ofincome.

1Q Fiscal 2020 (June 1, 2020 to August 31, 2020)
Information regarding Net Sales and Income (Loss) by Reporting Segment(Millions of yen)Transportation
Systems

Industrial
Systems

Information
Equipment
Systems

Other(Note 1)

Total

Adjustment
Amount(Note 2)

AmountRecorded on
Consolidated
Statementsof Income(Note 3)

5,142

2,398

305

1

7,848

—

7,848

10—

8890(90)

—

5,143

2,399

305

90

7,938(90)

7,848

586

190

106(11)872(702)

169

Reporting Segment

Net sales
Sales to third parties
Inter-segment salesand transfers
Total
Segment profit (loss)(Notes)1.
2.

3.

The “Other” segment includes operations not included in reporting segments such as the dispatch of temporary staff.
The segment profit (loss) adjustment amount is a loss of 702 million yen. This is comprised of an elimination of intersegment sales and transfer amount of 1 million yen and corporate expenditure (a loss of 704 million yen) that is notallocated to each reporting segment. Corporate expenditure is primarily comprised of selling, general andadministrative expenses, as well as research and development costs that are not allocated to each reporting segment.
Segment profit (loss) has been adjusted with operating income recorded under the quarterly consolidated statementsof income.

Summary of Consolidated Business Results for the First Quarter of Fiscal 2020
Toyo Denki Seizo K.K. (6505)

3.

Other

(1)

Status of Production, Orders, and Sales(a) Production Status
Business segment

1Q Fiscal 2019
(June 1, 2019 to August 31, 2019)
AmountShare(Millions of yen)(%)

1Q Fiscal 2020
(June 1, 2020 to August 31, 2020)
AmountShare(Millions of yen)(%)

Transportation Systems

5,662

68.7

5,133

69.3

Industrial Systems

2,486

30.2

2,144

29.0

Information Equipment Systems951.2

127

1.7

Other————

Total

8,244

100.0

7,406

100.0

Notes:

1.
2.

Amounts are based on sales prices.
Amounts are exclusive of consumption and other taxes.

(b) Status of Orders Received
Business segment

1Q Fiscal 2019
(June 1, 2019 to August 31, 2019)
Orders Received
Balance(Millions of yen)
(Millions of yen)

1Q Fiscal 2020
(June 1, 2020 to August 31, 2020)
Orders Received
Balance(Millions of yen)
(Millions of yen)Transportation Systems

5,292

22,325

4,497

23,471

Industrial Systems

3,503

7,781

3,038

5,997

Information Equipment Systems559

892

91325

Other

1—1—Total

9,357

30,9997,628

29,794

Notes:

1.
2.

Amounts are based on sales prices.
Amounts are exclusive of consumption and other taxes.

(c) Sales Status
Business segment

1Q Fiscal 2019
(June 1, 2019 to August 31, 2019)
AmountShare(Millions of yen)(%)

1Q Fiscal 2020
(June 1, 2020 to August 31, 2020)
AmountShare(Millions of yen)(%)

Transportation Systems

5,566

63.0

5,142

65.5

Industrial Systems

2,905

32.9

2,398

30.6

Information Equipment Systems

367

4.2

305

3.9

Other

10.0

10.0

Total

8,841100.0

7,848

100.0

Notes:

1.
2.

Amounts are based on sales prices.
Amounts are exclusive of consumption and other taxes.