Summary of Consolidated Business Results for the First Three Quarters of Fiscal 2019
April 10, 2020
Company Name:
Toyo Denki Seizo K.K.
Stock Exchange: 1st Section of the Tokyo Stock Exchange
Stock Code:6505
URL
https://www.toyodenki.co.jp
Representative:
Kenzo Terashima, President
Inquiries:
Takatoshi Ohtsuka, General Manager, Management Planning Division
TEL: +81-3-5202-8122
Scheduled date of submission of quarterly financial report: April 13, 2020
Scheduled date of commencement of dividend payments: —Preparation of quarterly financial report supplemental explanatory materials: YesHolding of quarterly financial results briefing: No(Note: Amounts less than one million yen in financial statements and supplementary data are rounded down.)

1.

Consolidated Business Results for the First Three Quarters of Fiscal 2019 (June 1, 2019 to February 29,2020)(1)

Consolidated Operating Results(Percentage figures show year-on-year increase or decrease.)
Net Sales

Operating Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

28,621
29,553

(3.2)
5.7

472
(133)

——687
(54)

——693
175

294.2
513.1

3Q Fiscal 2019
3Q Fiscal 2018

(Note) Comprehensive income:

3Q Fiscal 2019
3Q Fiscal 2018

Net Income per Share
3Q Fiscal 2019
3Q Fiscal 2018(2)

(1,250) million yen [-%]
(428) million yen [-%]

Diluted Net Incomeper ShareYenYen

77.54
19.03

—
—

Consolidated Financial Position
Total Assets(Reference) Shareholders’ equity

Shareholders’ Equity
Ratio (%)

Net Assets

Millions of yen

Millions of yen%

54,49258,001

23,28524,80442.7
42.8

As of February 29, 2020
As of May 31, 20192.

Net Income Attributable toOwners of the Parent

Ordinary Income

As of February 29, 2020
As of May 31, 201923,285 million yen
24,804 million yen

Dividend Information
Annual Dividend (Yen)
1Q

Fiscal 2018
Fiscal 2019

Interim

3Q

Fiscal Year-End

YenYenYenYen

——

0.00
0.00

——

30.00

30.00

30.00

30.00

Fiscal 2019 (Forecast)(Note) Revisions to the most recently announced dividend forecasts: No

3.

TotalYen

Consolidated Performance Forecast for Fiscal 2019 (June 1, 2019 to May 31, 2020)(Percentage figures show year-on-year increase or decrease.)
Net Sales
Millions of yen

Operating Income%Millions of yen%

Ordinary Income
Millions of yen

Net Income
Attributable to Ownersof the Parent

Net Income perShare (Yen)%Millions of yen%

Yen

Full year
42,0002.0
900
61.4
1,100 121.8(Note) Revisions to the most recently announced performance forecast: No900

30.4

100.65

* 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 endof the period (including treasury stock):

3Q Fiscal 2019

9,735,000 sharesFiscal 2018

9,735,000 shares(b)

Number of shares of treasury stock as of theend of the period:

3Q Fiscal 2019793,343 sharesFiscal 2018792,966 shares(c)Average number of shares for the period(fiscal year-to-date):

3Q Fiscal 2019

8,941,867 shares

3Q Fiscal 2018

9,242,854 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 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” in the Accompanying 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 consolidated business results, which has been prepared in accordancewith accounting principles generally accepted in Japan, for reference purpose only.

Summary of Consolidated Business Results for the First Three Quarters of Fiscal 2019
Toyo Denki Seizo K.K. (6505)

2.

Consolidated Financial Statements(1)

Consolidated Balance Sheets(Millions of yen)
Fiscal 2018
(As of May 31, 2019)

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
OtherAllowance 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

3Q Fiscal 2019
(As of February 29, 2020)

2,240
14,192
1,443
991
3,504
3,074
47
461
64
(1)
26,0191,806
14,878
1,085
766
4,052
2,958
26
119
280
(0)
25,973

12,210(5,119)7,090
8,174(6,732)
1,441
1,301
31
4,410
(3,592)818
10,683

12,265(5,410)6,854
8,193(7,023)
1,170
1,301
50
4,576
(3,838)738
10,115

677
—
14
692

515
14
14
544

17,856
164
2,598
(12)
20,60631,98258,00114,805
149
2,916
(12)
17,85828,51854,492

Summary of Consolidated Business Results for the First Three Quarters of Fiscal 2019
Toyo Denki Seizo K.K. (6505)(Millions of yen)
Fiscal 2018
(As of May 31, 2019)
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 payables
Deferred tax liabilities
Net defined benefit liability
OtherTotal 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

3Q Fiscal 2019
(As of February 29, 2020)

2,670
5,944
2,462
678
320
579
59
216
38
819
570
402
14,763

2,747
5,660
2,977805
172
74
50
200
35
421
582
154
13,882

12,961
20
1,554
3,893
4
18,43333,197

12,433
20
857
4,009
3
17,324
31,207

4,998
3,177
10,797(1,280)17,693

4,998
3,177
11,222(1,280)18,117

7,176
126
(192)
7,110
24,80458,001

5,285
39
(156)
5,167
23,28554,492(2)Summary of Consolidated Business Results for the First Three Quarters of Fiscal 2019
Toyo Denki Seizo K.K. (6505)
Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income for the First Three Quarters

Net Sales
Cost of sales
Gross profitSelling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividend income
Equity in profit of unconsolidated subsidiaries and affiliates
Insurance claim income related to disaster
Miscellaneous 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
Disaster recover expenses
Miscellaneous loss
Total non-operating expenses
Ordinary income (loss)
Extraordinary income
Gain on sales of investment securitiesTotal extraordinary income
Extraordinary loss
Expenses for commemorative events of the 100th anniversary
Total extraordinary losses
Income before income taxes
Income taxes: Current
Income taxes: Deferred
Total income taxes
Net income
Net Income Attributable to Owners of the Parent

3Q Fiscal 2018
(June 1, 2018 toFebruary 28, 2019)29,55324,252
5,301
5,434
(133)

(Millions of yen)
3Q Fiscal 2019
(June 1, 2019 toFebruary 29, 2020)
28,621
22,788
5,833
5,361
472

1233
——
36271

1223
40
92
35393

110
11321—
45192
(54)

67—
030
68
10177687

571
571

447
447

53
53
463
195
91
287
175
175

——1,135
301
140
442
693
693

Summary of Consolidated Business Results for the First Three Quarters of Fiscal 2019
Toyo Denki Seizo K.K. (6505)
Consolidated Statements of Comprehensive Income for the First Three Quarters(Millions of yen)
3Q Fiscal 2018
(June 1, 2018 toFebruary 28, 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 whichthe equity method is applied
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of the parent
Non-controlling interests

3Q Fiscal 2019
(June 1, 2019 toFebruary 29, 2020)
175693(590)
537(1,891)
(11)
35

(56)

(76)

(604)
(428)

(1,943)(1,250)(428)—(1,250)—(3)Summary of Consolidated Business Results for the First Three Quarters of Fiscal 2019
Toyo Denki Seizo K.K. (6505)
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]
First Three Quarters of Fiscal 2018 (June 1, 2018 to February 28, 2019)
Information regarding Net Sales and Income (Loss) by Reporting Segment(Millions of yen)

Other(Note 1)

Total

Adjustment
Amount(Note 2)

AmountRecorded on
Quarterly
Consolidated
Statementsof Income(Note 3)

Reporting Segment

Net sales
Sales to third parties
Inter-segment salesand transfers
Total
Segment profit
Notes:

1.
2.

3.

Transportation
Systems

IndustrialSystems

Information
Equipment
Systems

19,804

8,638

1,098

1129,553—29,553

370—

433

472(472)—

19,841

8,639

1,098

445

30,025(472)29,553

1,457

269

213

25

1,965(2,099)(133)

The “Other” segment includes operations not included in reporting segments such as the dispatch of temporary staff.
The segment profit adjustment amount is a loss of 2,099 million yen. This is comprised of an elimination of intersegment sales and transfer amount of a loss of 1 million yen and corporate expenditure (a loss of 2,097 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 has been adjusted with operating loss recorded under the quarterly consolidated statements of income.

First Three Quarters of Fiscal 2019 (June 1, 2019 to February 29, 2020)
Information regarding Net Sales and Income (Loss) by Reporting Segment(Millions of yen)
Reporting Segment

Net sales
Sales to third parties
Inter-segment sales
and transfers
TotalSegment profit
Notes:

1.
2.

3.

TransportationSystems

IndustrialSystems

Information
Equipment
SystemsOther(Note 1)

Total

Adjustment
Amount(Note 2)

AmountRecorded on
Quarterly
Consolidated
Statementsof Income(Note 3)

17,610

9,667

1,339

4

28,621—

28,62140—391

396(396)—

17,615

9,667

1,339

395

29,018(396)

28,621

1,459

772

388

5

2,627(2,154)472

The “Other” segment includes operations not included in reporting segments such as the dispatch of temporary staff.
The segment profit adjustment amount is a loss of 2,154 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 2,154 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 has been adjusted with operating income recorded under the quarterly consolidated statements ofincome.

Summary of Consolidated Business Results for the First Three Quarters of Fiscal 2019
Toyo Denki Seizo K.K. (6505)

3.

Supporting Materials for the Financial Results(1)

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

Business segment

3Q Fiscal 2018
(June 1, 2018 to February, 28 2019)
Amount(Millions of yen)

3Q Fiscal 2019
(June 1, 2019 to February 29, 2020)

Share
(%)

Amount(Millions of yen)

Share
(%)

Transportation Systems

19,232

67.6

17,54061.8

Industrial Systems

8,343

29.3

9,740

34.3

Information Equipment Systems

859

3.0

1,115

3.9

Other————

Total

28,435100.0

28,397100.0

Notes:

1.
2.

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

(b) Status of Orders Received

Business segment

3Q Fiscal 2018
(June 1, 2018 to February 28, 2019)
Orders Received(Millions of yen)

3Q Fiscal 2019
(June 1, 2019 to February 29, 2020)

Balance(Millions of yen)Orders Received(Millions of yen)

Balance(Millions of yen)Transportation Systems

16,997

20,947

20,53325,522

Industrial Systems

9,953

8,004

8,274

5,790

Information Equipment Systems

914

343

1,355

716

Other11—

4—

Total

27,87729,29630,16732,029Notes:

1.
2.

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

(c) Sales Status

Business segment

3Q Fiscal 2018
(June 1, 2018 to February, 28 2019)
Amount(Millions of yen)

3Q Fiscal 2019
(June 1, 2019 to February 29, 2020)

Share(%)

Amount(Millions of yen)

Share(%)

Transportation Systems

19,80467.0

17,61061.5

Industrial Systems

8,638

29.2

9,667

33.8

Information Equipment Systems

1,098

3.7

1,339

4.7

Other

110.0

40.0

Total

29,553100.0

28,621100.0

Notes:

1.
2.

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