October 13, 2023

Consolidated Financial Results for the Three Months Ended August 31, 2023
(Under Japanese GAAP)
Company name:Toyo Denki Seizo K.K.
Listing:
Tokyo Stock Exchange
Securities code:
6505
URL:
https://www.toyodenki.co.jp
Representative:
Akira Watanabe, President, Representative Director
Inquiries:
Jun Nukina, Operating Officer, General Manager, Management Planning DivisionTel.:+81-3-5202-8122
Scheduled date to file quarterly securities report:
October 13, 2023
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:
YesHolding of quarterly financial results briefing:
Yes(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the three months ended August 31, 2023 (from June 1, 2023, to August
31, 2023)(1) Consolidated operating results (cumulative)(Percentages indicate year-on-year changes.)

Net sales

Operating profit

Profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%Three months ended
August 31, 2023

6,658

5.6(62)-176-148(24.6)

August 31, 2022

6,305

(6.6)

(266)

-(3)

-

196

72.2

Note: Comprehensive income

For the three months ended August 31, 2023: ¥906 million [0.7%]
For the three months ended August 31, 2022: ¥900 million [-%]

Basic earnings per share

Diluted earnings pershare

Ye n

Ye n

Three months ended
August 31, 2023

15.70

-

August 31, 2022

21.98-(2) Consolidated financial position
Total assets

As ofAugust 31, 2023
May 31, 2023
Reference: Equity

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen%

49,71425,20550.749,682

24,58249.5

As of August 31, 2023: ¥25,205 million
As of May 31, 2023: ¥24,582 million

2. Cash dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Ye n

Ye n

Ye n

Ye n

Ye n

Fiscal year ended
May 31, 2023

-0.00

-30.0030.00

Fiscal year ending
May 31, 2024

0.00

-30.0030.00

Fiscal year ending
May 31, 2024
(Forecast)Fiscal year-end

Total

Note: 1. Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated financial results forecast for the fiscal year ending May 31, 2024 (from June 1,2023, to May 31, 2024)(Percentages indicate year-on-year changes.)
Net sales

Operating profit

Profit attributable toowners of parent

Ordinary profit

Basic earnings pershare

Millionsof yen%

Millions ofyen%Millions ofyen%Millions ofyen%

Ye n

Six months ending
November 30, 2023

15,90015.0(120)-50(74.7)

180

575.2

19.08

Fiscal year ending
May 31, 2024

34,500

11.2

600

15.9

950(3.8)800(3.0)

84.81

Note: Revisions to the financial results forecast most recently announced: None

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scopeof consolidation):
None
Newly included: - companies (Company name)
Excluded:- companies (Company name)(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements
None(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates : None(iv) Restatement : None:: None

(4) Number of issued shares (common shares)(i) Total number of issued shares at the end of the period (including treasury shares)
As of August 31, 2023

9,735,000 shares

As of May 31, 2023

9,735,000 shares(ii) Number of treasury shares at the end of the period
As of August 31, 2023

301,943 shares

As of May 31, 2023

301,843 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Three months ended August 31, 2023

9,433,129 shares

Three months ended August 31, 2022

8,940,317 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or anaudit corporation.
* Proper use of earnings forecasts, and other special matters(Note on forward-looking statements)
The above forecasts are based on information available as of the date of publication of this document, and actual results
may differ from the forecasts due to various factors in the future. Please refer to “Explanation of Consolidated Financial
Results Forecast and Other Forward-looking Information” on page 3 of the Attachment for details of the financial
results forecast (available in Japanese only).
* This document has been translated from a part of the Japanese original for reference purposes only. In the event ofany discrepancy between this translated document and the Japanese original, the original shall prevail.

Toyo Denki Seizo K.K. (6505) Financial Results for the Three Months Ended August 31, 2023

2. Quarterly Consolidated Financial Statements and Significant Notes Thereto(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of May 31, 2023
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract assets
Electronically recorded monetary claims - operating
Merchandise and finished goods
Work in process
Raw materials and supplies
Advance payments to suppliers
Accounts receivable
Other
Allowance for doubtful accounts

As of August 31, 2023

5,520
13,236
1,116
376
3,106
2,836
22
162
370
(10)

4,494
12,444
1,464
511
3,359
3,010
23190
379
(40)

26,73825,838

9,952(6,340)

9,953(6,409)Buildings and structures, net

3,611

3,544

Machinery, equipment and vehicles
Accumulated depreciation

8,208(7,860)8,217(7,875)

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

Machinery, equipment and vehicles, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Software
Other

348

341

1,269
11
5,138
(4,678)1,269
144,989(4,538)

459

450

5,701

5,621

63
1362
13

Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
OtherAllowance for doubtful accounts

7775

14,288
108
2,775
(7)

15,2792,901(2)

Total investments and other assets

17,165

18,17822,94323,87549,682

49,714

Total non-current assets
Total assets

Toyo Denki Seizo K.K. (6505) Financial Results for the Three Months Ended August 31, 2023

(Millions of yen)
As of May 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Accrued expenses
Income taxes payable
Accrued consumption taxes
Contract liabilities
Deposits received
Provision for bonuses for directors (and other officers)
Provision for bonuses
Provision for loss on orders received
Provision for product warranties
Other

As of August 31, 2023

2,060
4,768
885
589
128
94
84
189
39
673
989
70
127

1,974
4,511
1,065
574
38
164
107
259
7
340
776
110
106

10,69910,037

10,28830
4,075
4

10,084
34
271
4,076
4

14,39914,471

Total liabilities

25,09924,508

Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares

4,998
3,177
11,347
(486)

4,998
3,177
11,212(486)19,036

18,901

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans

5,370
202
(26)

6,091
233
(20)

Total accumulated other comprehensive income

5,546

6,304

24,582

25,20549,682

49,714

Total current liabilities
Non-current liabilities
Long-term borrowings
Long-term accounts payable - otherDeferred tax liabilities
Retirement benefit liability
Other
Total non-current liabilities

Total shareholders’ equity

Total net assets
Total liabilities and net assets

Toyo Denki Seizo K.K. (6505) Financial Results for the Three Months Ended August 31, 2023

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income
Quarterly Consolidated Statement of Income
Three months ended August 31, 2023

(Millions of yen)Three months ended
August 31, 2022

Three months ended
August 31, 2023

Net sales
Cost of sales

6,305
4,937

6,658
4,962

Gross profit
Selling, general and administrative expenses

1,368
1,634

1,696
1,758

Operating profit (loss)

(266)

(62)

Non-operating income
Interest income

00116
48117
90

106
8280

368252Non-operating expenses
Interest expenses
Miscellaneous losses
Total non-operating expenses

133
1712
1
14

Ordinary profit (loss)

(3)

176

Gain on sale of investment securities
Gain on sale of non-current assets

138
150

109-

Total extraordinary income

289

109-

56
56

Profit before income taxes

286

228

Income taxes - current
Income taxes - deferred
Total income taxes

1672
89

126780Profit
Profit attributable to owners of parent

196
196

148
148

Dividend income
Share of profit of entities accounted for using the equity
methodForeign exchange gains
Miscellaneous income
Total non-operating income

Extraordinary income

Extraordinary loss
Business structural reform expenses
Total extraordinary loss

Toyo Denki Seizo K.K. (6505) Financial Results for the Three Months Ended August 31, 2023
Quarterly Consolidated Statement of Comprehensive Income
Three months ended August 31, 2023

(Millions of yen)Three months ended
August 31, 2022
ProfitOther comprehensive income

Three months ended
August 31, 2023
196

148

616

721

658131703

758

Comprehensive income

900

906

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

900-906-Valuation difference on available-for-salesecurities
Remeasurements of defined benefit plans, net oftax
Share of other comprehensive income of entities
accounted for using the equity method
Total other comprehensive income

Toyo Denki Seizo K.K. (6505) Financial Results for the Three Months Ended August 31, 2023

(3) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption)
Not applicable(Notes on Significant Changes in Shareholders’ Equity)
Not applicableToyo Denki Seizo K.K. (6505) Financial Results for the Three Months Ended August 31, 2023
(Segment Information, etc.)[Segment Information]
Three months ended August 31, 2022
Information regarding net sales and profit (loss) by reporting segment
Reporting segments

Transportation
Business

ICT Solution
Business

Industry
Business

Other(Note 1)

Total(Millions of yen)Amountrecorded onquarterly
Adjustment
consolidateds
statement ofincome(Note 2)(Note 3)

Net sales
Net sales to externalcustomers
Intersegment sales
and transfers
Total

4,017

1,983

302

16,305-

6,305

30-

72

76(76)

-

4,021

1,983

302

73

6,381(76)6,305

Segment profit (loss)
353(56)83(5)374(641)(266)
Notes: 1“Other” is a business segment that is not included in reporting segments, and includes the worker dispatching business.
2
Adjustments to segment profit (loss) of ¥(641) million are the elimination of intersegment transactions of ¥0 million
and corporate expenses of ¥(641) million that are not attributable to reporting segments. Corporate expenses areprimarily general and administrative expenses as well as research and development expenses that are not attributableto reporting segments.
3
Segment profit (loss) has been adjusted with operating loss recorded on the quarterly consolidated statement of income.
Three months ended August 31, 2023
1. Information regarding net sales and profit (loss) by reporting segment(Millions of yen)
Reporting segments

Transportation
Business

ICT Solution
BusinessIndustry
Business

Other(Note 1)

Total

Adjustments(Note 2)

Amountrecorded onquarterlyconsolidated
statement ofincome(Note 3)

Net sales
Net sales to externalcustomers
Intersegment sales
and transfers
TotalSegment profit (loss)

Notes: 1
2

3

4,300

2,120

234

26,658-

6,658

00-

80

80(80)

-

4,300

2,121

234

82

6,738(80)

6,658

495

51

60

(1)

606

(669)

(62)

“Other” is a business segment that is not included in reporting segments, and includes the worker dispatchingbusiness.
Adjustments to segment profit (loss) of ¥(669) million are the elimination of intersegment transactions of¥(0) million and corporate expenses of ¥(669) million that are not attributable to reporting segments.
Corporate expenses are primarily general and administrative expenses as well as research and development
expenses that are not attributable to reporting segments.
Segment profit (loss) has been adjusted with operating loss recorded on the quarterly consolidated statementof income.

Toyo Denki Seizo K.K. (6505) Financial Results for the Three Months Ended August 31, 2023

3. Other(1) Status of Production, Orders, and Sales(i) Production status
Business segment

Three months ended August 31, 2022
AmountShare(Millions of yen)(%)

Three months ended August 31, 2023
AmountShare(Millions of yen)(%)

Transportation Business

4,202

68.6

4,538

69.4

Industry Business

1,830

29.9

1,933

29.6

ICT Solution Business

91

1.5

65

1.0

Other----

Total

6,124

100.0

6,537

100.0

Note: Amounts are based on sales prices.
(ii) Status of orders received
Business segment

Three months ended August 31, 2022
OrdersOrder backlog
received(Millions of yen)
(Millions of yen)Three months ended August 31, 2023
OrdersOrder backlog
received(Millions of yen)
(Millions of yen)Transportation Business

5,334

22,126

6,097

23,712

Industry Business2,840

7,057

2,018

7,048

ICT Solution Business

277239270465

Other1-2-

Total

8,453

29,423

8,389

31,227

Note: Amounts are based on sales prices.
(iii) Sales status
Business segment

Three months ended August 31, 2022
AmountShare(Millions of yen)(%)

Three months ended August 31, 2023
AmountShare(Millions of yen)(%)

Transportation Business

4,017

63.7

4,300

64.6

Industry Business

1,983

31.5

2,120

31.9

ICT Solution Business

302

4.8

234

3.5

Other10.0

20.0

Total

6,305

100.0

6,658

100.0