Financial Report

Financial Review

Reference Data for Management Indices

Consolidated Operating Results, Consolidated Financial Position, and Consolidated Cash Flow for FYE May
2023 (from June 1, 2022 to May 31, 2023) are as follows:

Capital investment

Depreciation and amortization

Research and development costs

FYE May 2019 2020

2022

2023

Cash flows from operating activitiesFYE May 2019 2020

2021

2022

2023

815 million yen

Net cash provided by operating activities
amounted to 815 million yen (net cash of
2,504 million yen provided in the previous
fiscal year), principally due to the recordingof profit before income taxes and an increase in trade notes and accounts payable.

43 Toyo Denki Seizo Report 2023

635 million yen

Net cash provided by investing activities
totaled 635 million yen (net cash of 289
million yen provided in the previous fiscal
year), principally due to proceeds fromsales of investment securities.

2022

2023

712

819
2021

(2,356)(390)

FYE May 2019 2020

2022

Cash flow from financing activities
Net cash used in financing activities

390 million yen

Net cash used in financing activities was
390 million yen (net cash of 2,356 million
yen used in the previous fiscal year), primarily owing to repayment of debt.

2019

2020

2021

2022

2023

Japan

31,74530,997

27,87625,77924,915

China

3,663

4,282

3,628

3,015

4,536

Others

5,763

3,791

1,638

1,363

1,574

41,172

39,07133,14330,15831,025

22.9%

20.7%

15.9%

14.5%

19.7%

Total
Overseas net sales ratio
FYE May 2019 2020

2021

2023

(Unit: Million yen)Japan China
OthersOverseas net sales ratio

Cash flow from investing activities
Net cash provided by investing activities

2023

289
2021

Net sales by region

Cash Flows
Cash flow from operating activities
Net cash provided by operating activitiesFYE May 2019 2020

(971)

Net assets as of May 31, 2023 stood at
24,582 million yen, an increase of 2,569
million yen compared with the end of theprevious fiscal year. This increase waslargely attributable to an increase of 1,456
million yen in unrealized holding gain on
available-for-sale securities.

(2,012)

24,582 million yen

2022(Unit: Million yen)

(155)

Total net assets

2021

Cash flows from financing activities(1,019)Total liabilities as of May 31, 2023 stood at
25,099 million yen, an increase of 195 million yen compared with the end of the previous fiscal year. This increase was largely
attributable to an increase of 1,012 million
yen in trade notes and accounts payable
and an increase of 63 million yen in provision for product warranties, partially offset
by a decrease of 585 million yen in debt.

Net assets

815

25,099 million yen

FYE May 2019 2020

(Unit: Million yen)

2,504

Total liabilities

2023

1,776

Total assets as of May 31, 2023 stood at
49,682 million yen, an increase of 2,765
million yen compared with the end of theprevious fiscal year. The increase in total assets was largely attributable to an increaseof 1,817 million yen in investment securities
and an increase of 1,145 million yen in tradenotes, accounts receivable and contract assets, partially offset by a decrease of 621
million yen in property, plant and equipment.

Liabilities

2,148

Assets49,682 million yen

2022

Cash flows from investing activities(Unit: Million yen)

41

Financial Position

Total assets

731

2021

1,257

FYE May 2019 2020

840
2021

(1,126)

From a profit perspective, operating income increased by 345 million yen to 517 million yen compared with the previous fiscal year.
Ordinary income increased by 220 million yen to 987 million yen
compared with the previous fiscal year. Net income attributable toowners of the parent improved by 1,754 million yen to 824 million
yen, due to factors such as the end of the impact of the impairment
loss on business assets related to the Industry Business segmentthat was recorded in the previous fiscal year.

635

Net sales increased 2.9%
compared with the previous
fiscal year to 31,025 million
yen, driven by increases in theTransportation Business, Industry Business, and ICT Solution
Business segments.

545(Loss of 930 million yen in the previous fiscal year)

1,413

Orders received increased 9.2%
compared with the previous fiscal year to 33,246 million yen,buoyed by increases in theTransportation Business, Industry Business, and ICT Solution
Business segments.

824 million yen(YoY +2.9%)

3,720(YoY +9.2%)

1,487

31,025 million yen

310

33,246 million yen

Profit/Loss
Net income attributable to owners of the parent

315

Net sales

632

Orders received

1,774

1,090

Results of Operation(Unit: Million yen)792

(Unit: Million yen)

755

(Unit: Million yen)

( For the Years Ended May 31 or As of May 31)

2022

2023

Toyo Denki Seizo Report 2023

44

Financial Report
TOYO DENKI SEIZO K.K.
Consolidated Balance Sheets

As of

May 31,
2023

May 31,
2022

May 31,
2023(Millions of yen)

As of(Thousands of
U.S. dollars)(Note 1)

LIABILITIES AND NET ASSETS

Current assets:

Current liabilities:
Trade notes and accounts payable (Note 16)
Electronically recorded payables
Short-term borrowings and current portion of long-term debt
(Notes 6 and 16)
Income taxes payable (Note 11)
Contract liabilities (Note 20)
Accrued expenses
Accrued directors’ bonuses
Accrued employees’ bonuses
Reserve for losses on order acknowledgements (Note 3)
Provision for product warranties
Other
Total current liabilities¥ 5,520¥ 4,449$ 39,493

Trade notes, accounts receivable and contract assets (Notes 2, 16 and 20)

13,236

12,091

94,702

Electronically recorded receivables (Note 16)

1,116

1,136

7,991

Inventories (Note 3)

6,319

6,267

45,212Other current assets

555

246

3,976

Allowance for doubtful accounts

(10)

(1)

(72)

26,73824,189191,304

Total current assets

Property, plant and equipment (Notes 4 and 6):
Buildings and structures

3,611

3,985

25,841

Machinery and vehicles

348

579

2,491

Land

1,269

1,270

9,086

Construction in progress

11

7

81

Other

459

479

3,290

5,701

6,322

40,790Total property, plant and equipment

Investments and other assets:
Investment securities (Notes 16 and 17)

14,28812,471

102,231

Deferred tax assets (Note 11)

108

883

776

Intangible assets

77

101

552

Other (Note 5)

2,775

2,953

19,856

Allowance for doubtful accounts

(7)

(6)

(56)

Total investments and other assets

17,242

16,403

123,361

May 31,
2022(Millions of yen)

AssetsCash on hand and in banks (Notes 16 and 18)

May 31,
2023

May 31,
2023(Thousands of
U.S. dollars)(Note 1)

¥ 2,060
4,768¥ 1,6104,205$ 14,740
34,115

885

585

6,333

128
84
589
39
673
989
70
411
10,699

306
47
688
6
699
963
6
449
9,569

915
606
4,218
279
4,816
7,076
504
2,944
76,552

10,2884,075
30
414,399

11,1734,113
38
615,33373,61029,160221
31103,023

Net assets (Notes 8 and 15):
Shareholders’ equity:
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity¥ 4,998
3,177
11,347(486)
19,036¥ 4,998
3,177
11,122(1,282)18,016$ 35,761
22,733
81,186(3,482)
136,199

Accumulated other comprehensive income:Unrealized holding gain on securities
Translation adjustments
Retirement benefits liability adjustments (Note 7)
Total accumulated other comprehensive income
Total net assets

5,370
202
(26)
5,546
24,582

3,913
144
(61)
3,996
22,012

38,422
1,445(187)
39,680175,879

Total liabilities and net assets¥49,682¥46,916$355,456

Long-term liabilities:
Long-term debt (Notes 6 and 16)
Liability for retirement benefits (Note 7)Long-term payables
Other
Total long-term liabilities
Commitments and contingencies (Note 14)

See notes to consolidated financial statements.

Total assets (Note 21)

45 Toyo Denki Seizo Report 2023

¥49,682¥46,916$355,456

Toyo Denki Seizo Report 2023

46

Financial Report
TOYO DENKI SEIZO K.K.
Consolidated Statements of Income

For the Years Ended

Net sales (Notes 20 and 21)
Cost of sales (Note 3)
Gross profit

TOYO DENKI SEIZO K.K.
Consolidated Statements of Changes in Net Assets
May 31,
2023(Millions of yen)

May 31,
2023¥30,158
23,3436,815$221,974
170,481
51,492

6,679
517

6,643
171

47,789
3,703

191
(52)
221
104
—
4
469
987
167
1,155

154
(58)
242
227
20
8
594
766
(1,996)(1,230)

1,370
(377)
1,581
750
—
34
3,359
7,062
1,201
8,264

Non-operating income (expenses):
Interest and dividend income
Interest expense
Equity in earnings of affiliates accounted for by the equity method
Foreign exchange gain
Subsidy income
Other income, net
Ordinary income
Special gains (losses), net (Note 10)
Income (loss) before income taxes
Income taxes (Note 11):
Current
Deferred

¥

205
124
330
824
824

(Millions of yen)
Shareholders’ equity(Thousands of
U.S. dollars)(Note 1)

¥31,025
23,828
7,197

Selling, general and administrative expenses (Note 9)
Operating income (Note 21)

Net income (loss)
Net income (loss) attributable to owners of the parent

May 31,
2022

403
(703)
(299)
(930)
¥ (930)

1,472
892
2,364
5,899
$ 5,899

Commonstock

Translation
adjustments

Total net
assets¥12,320¥(1,281)¥19,214¥4,803

¥ 88

¥(97)

¥4,793¥24,008

—

—

(268)

—

(268)

—

—

—

—

(268)

—
—

—
—

(0)

—
—

—
—

—
—

—
—

Balance as of May 31, 2022——
¥4,998

Balance as of June 1, 2022

Cash dividends paid
Net loss attributable toowners of the parent

(930)

(930)

(930)

—

—
(0)

—
—
¥3,177—(1,198)¥11,122—(0)¥(1,282)—(1,198)¥18,016

(889)
(889)
¥3,913

56
56
¥144

35
35
¥(61)

(797)
(797)
¥3,996(797)(1,996)¥22,012¥4,998¥3,177¥11,122¥(1,282)¥18,016¥3,913

¥144

¥(61)

¥3,996¥22,012

—

—

(268)

—

(268)

—

—

—

—

(268)

Disposal of treasury stock

—
—
—

—
—
(331)

824
—
—

—
(0)
796

824
(0)
464

—
—
—

—
—
—

—
—
—

—
—
—

824
(0)
464

Transfer of loss on disposalof treasury stock

—

331

(331)

—

—

—

—

—

—

—

—
—
¥4,998——¥3,177—225¥11,347—795¥(486)—
1,020¥19,036

1,456
1,456
¥5,370

57
57
¥202

35
35
¥(26)

1,549
1,549
¥5,546

1,549
2,569¥24,582

Purchases of treasury stock
Net changes in items
other than those inshareholders’ equity
Total changes during the year

(0)

Changes during the year
Cash dividends paid
Net income attributable toowners of the parent
Purchases of treasury stock

TOYO DENKI SEIZO K.K.
Consolidated Statements of Comprehensive Income(Thousands of U.S. dollars) (Note 1)
Shareholders’ equity

May 31,
2023

May 31,
2022(Millions of yen)

¥ 824

May 31,
2023(Thousands of
U.S. dollars)(Note 1)¥ (930)$ 5,899

Other comprehensive income (loss) (Note 12):
Unrealized holding gain (loss) on securities
Translation adjustments
Retirement benefits liability adjustments
Share of other comprehensive income of affiliates accounted for by the equity method
Total other comprehensive income (loss)

1,456
—
35
57
1,549

(889)
2
35
53
(797)

10,420—252
412
11,085Comprehensive income¥2,373¥(1,727)$16,984

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

Total
shareholders’equity¥3,177

Balance as of May 31, 2023

Net income (loss)

Treasury
stock

Total
Retirement
accumulated
benefitsotherliability
comprehensive
adjustments
incomeChanges during the year

Total changes during the year

For the Years Ended

Retainedearnings

Unrealized
holding
gain onsecurities¥4,998

Balance as of June 1, 2021

Net changes in items
other than those inshareholders' equity

See notes to consolidated financial statements.

Capitalsurplus

Accumulated other comprehensive income¥(1,727)—$16,984—

Total
Retirement
accumulated
benefitsotherliability
comprehensive
adjustments
incomeCommonstock

CapitalsurplusRetainedearnings

Treasury
stock

Total
shareholders’equityUnrealized
holding
gain onsecurities$35,761$22,733$79,576$(9,173) $128,897$28,001$1,033$(440)$28,594$157,492——(1,918)—(1,918)

—

—

—

—

(1,918)

Disposal of treasury stock

—
—
—

—
—
(2,370)

5,899
—
—

—
(4)
5,696

5,899
(4)
3,326

—
—
—

—
—
—

—
—
—

—
—
—

5,899
(4)
3,326

Transfer of loss on disposalof treasury stock

—

2,370

(2,370)

—

—

—

—

—

—

—

—
—
$35,761——$22,733—
1,610$81,186

—
—
5,691
7,301
$(3,482) $136,199

10,42010,420$38,422412
412$1,445252
252$(187)

11,085
11,085$39,680

11,085
18,387$175,879

Balance as of June 1, 2022

Translation
adjustments

Total net
assetsChanges during the year
Cash dividends paid
Net income attributable toowners of the parent
Purchases of treasury stock

Net changes in items
other than those inshareholders’ equity
Total changes during the year

¥2,373—

Accumulated other comprehensive income

Balance as of May 31, 2023

See notes to consolidated financial statements.

See notes to consolidated financial statements.

47 Toyo Denki Seizo Report 2023

Toyo Denki Seizo Report 2023

48

Financial Report
TOYO DENKI SEIZO K.K.
Consolidated Statements of Cash Flows
For the Years Ended

TOYO DENKI SEIZO K.K.
Notes to Consolidated Financial Statements
May 31,
2023

May 31,
2022(Millions of yen)

Operating activities
Income (loss) before income taxes
Depreciation and amortization
Impairment loss
Reversal of allowance for doubtful accounts
Provision for accrued employees' bonuses(Decrease) increase in liability for retirement benefits
Interest and dividend income
Interest expense
Equity in earnings of affiliates accounted for by the equity method
Subsidy income
Gain on sales of property, plant and equipment
Gain on sales of investment securities
Loss on valuation of investment securities
Gain on reversal of foreign translation adjustment
Business restructuring expenses
Loss on valuation of investments in capital of subsidiaries and affiliates
Changes in operating assets and liabilities:
Trade notes and accounts receivable
Inventories
Trade notes and accounts payable
Reserve for losses on order acknowledgements
Provision for product warranties
Contract liabilities
Accrued expenses
Other, net
SubtotalInterest and dividend income received
Interest expense paid
Subsidies received
Income taxes paid
Net cash provided by operating activities
Investing activities
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchases of intangible assets
Purchases of investment securities
Proceeds from sales of investment securities
Proceeds from liquidation of an affiliate
Payments of loans receivableCollection of loans receivable
Other, net
Net cash provided by investing activities
Financing activities
Decrease in short-term loans payable
Repayment of long-term debt
Purchases of treasury stock
Proceeds from disposal of treasury stock
Cash dividends paid
Other, net
Net cash used in financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period (Note 18)

May 31,
2023(Thousands of
U.S. dollars)(Note 1)

¥ 1,155
840
—
9
(26)
(22)
(191)
52
(221)
—
(150)
(530)
—
—
513
—

¥(1,230)
1,257
2,256
(0)
(128)
5
(154)
58
(242)
(20)
—
(366)
45
(94)
—
155

$ 8,264
6,010
—
67
(188)
(158)
(1,370)377(1,581)—(1,079)(3,797)
—
—
3,674
—

(1,125)
(51)
1,012
25
63
36
(98)
(193)
1,097
201
(53)
—
(429)
815

891
633
(557)
99
(0)
13
97
(156)
2,562
162
(60)
20
(180)
2,504

(8,053)
(370)
7,244
181
455
263
(701)
(1,387)
7,850
1,439
(381)
—
(3,076)
5,832

(324)
266
(17)
(14)
818
—
(50)
—
(42)
635

(351)
14
(18)
(73)
466
283
—
15
(45)
289

(2,319)
1,903
(127)
(101)
5,858
—
(357)
—
(306)
4,549

—
(585)
(0)
464
(267)
(2)
(390)
10
1,070
4,449
¥ 5,520(1,500)
(585)
(0)
—
(269)
(1)
(2,356)
48
485
3,964
¥ 4,449—(4,187)(4)
3,326(1,911)(17)(2,795)72
7,658
31,835$39,493

1. Summary of Significant Accounting Policies(a) Basis of presentation
The accompanying consolidated financial statements of TOYO DENKI SEIZO K.K. (the “Company”) and consolidated subsidiaries(collectively the “Group”) are prepared on the basis of accounting principles generally accepted in Japan, which are different in certain
respects as to the application and disclosure requirements of International Financial Reporting Standards (IFRS), and are compiled
from the consolidated financial statements prepared by the Company as required by the Financial Instruments and Exchange Act ofJapan.
Certain amounts in the prior year’s financial statements have been reclassified to conform to the current year’s presentation.
Amounts of less than one million yen and one thousand U.S. dollars have been rounded down to the nearest million yen andthousand U.S. dollars, respectively, in the presentation of the accompanying consolidated financial statements. As a result, the totals
in yen and U.S. dollars do not necessarily agree with the sum of the individual amounts.
(b) Principles of consolidation and accounting for investments in unconsolidated subsidiaries and affiliates
The accompanying consolidated financial statements included the accounts of the Company and any significant companies controlled
directly or indirectly by the Company.
Companies over which the Company exercises significant influence in terms of their operating and financial policies have beenaccounted for by the equity method. The Company applies the “Practical Solution of Unification of Accounting Policies Applied toForeign Subsidiaries for Consolidated Financial Statements” (Accounting Standards Board of Japan (ASBJ) Practical Issues Task
Force (PITF) No. 18) and “Practical Solution on Unification of Accounting Policies Applied to Associates Accounted for using Equity
Method” (PITF No. 24). In accordance with these PITF, the accompanying consolidated financial statements have been prepared byusing the accounts of foreign consolidated subsidiaries and affiliates prepared in accordance with either IFRS or accounting principles
generally accepted in the United States as adjusted for certain items including goodwill, actuarial gain (loss) and capitalized
development costs.
As of May 31, 2023, the numbers of consolidated subsidiaries and affiliates accounted for by the equity method were 5 and 2 (5and 2 in 2022), respectively. All significant intercompany balances and transactions have been eliminated in consolidation. The
closing date of all consolidated subsidiaries is consistent with that of the Company.
Investments in subsidiaries and affiliates which are neither consolidated nor accounted for by the equity method are carried at costor less. Where there has been a permanent decline in the value of such investments, the Company has written down the investments.
(c) Foreign currency translation
Receivables and payables denominated in foreign currencies are translated into yen at the rates of exchange in effect at the balance
sheet date, and differences arising from the translation are included in the consolidated statements of income.
The balance sheet accounts of the foreign consolidated subsidiaries are translated into yen at the rates of exchange in effect at thebalance sheet date, except for the components of net assets excluding non-controlling interests which are translated at their historicalexchange rates. Revenue and expense accounts are translated at the average rate of exchange in effect during the year. Differences
arising from the translation are presented as translation adjustments in the consolidated financial statements.
(d) Cash and Cash equivalents
Cash and cash equivalents consist of cash on hand, cash in banks which can be withdrawn at any time and short-term investmentswith a maturity of three months or less from the date of purchase, which can easily be converted to cash and are subject to little riskof change in value.
(e) Inventories
Inventories are stated principally at the lower of cost or net realizable value, cost being determined principally by the specificidentification method for finished products and work in process and by the moving average cost method for raw material andsupplies.

See notes to consolidated financial statements.

49 Toyo Denki Seizo Report 2023

Toyo Denki Seizo Report 2023

50

Financial Report(f) Short-term investments and investment securities
Securities other than equity securities issued by subsidiaries and affiliates are classified into three categories: trading, held-tomaturity or other securities (available-for-sale securities). Trading securities are carried at fair value and held-to-maturity securities
are carried at amortized cost. Available-for-sale securities with market quotation are carried at fair value with changes in unrealized
holding gain or loss, net of the applicable income taxes, included directly in net assets. Available-for-sale securities without market
quotations are carried at cost. Cost of securities sold is determined by the moving average method.
(g) Property, plant and equipment (except for leased assets) and depreciation
Depreciation of property, plant and equipment of the Company and its consolidated subsidiaries is calculated principally by the
declining-balance method based on the estimated useful lives and the residual value, while buildings except for facilities attached tobuildings acquired on or after April 1, 1998, and facilities attached to buildings and structures acquired on or after June 1, 2016, aredepreciated by the straight-line method. The estimated useful lives of these assets are as follows:
Buildings and structures:
8 to 60 years
Machinery and vehicles:
3 to 12 years
Significant renewals and additions are capitalized at cost. Maintenance and repairs are charged to income.
(h) Intangible assets (except for leased assets)
Intangible assets are amortized using the straight-line method. Software for internal use is amortized over the internal available period(5 years) using the straight-line method.
(i) Leases
Leased assets capitalized under the finance lease arrangements which do not transfer ownership to the lessee are depreciated overthe lease period without any residual value using the straight-line method.
All other lease transactions are accounted for as operating leases and related payments are charged to income as incurred.
(j) Allowance for doubtful accounts
Allowance for doubtful accounts is provided based on past experience for normal receivables and on an estimate of the collectabilityof receivables from companies in financial difficulty.
(k) Accrued directors’ bonuses
Accrued directors’ bonuses are provided to cover the current fiscal year’s portion of the estimated amounts to be paid in future for the
performance incentive bonuses.

(p) Income taxes
Deferred tax assets and liabilities have been recognized in the consolidated financial statements with respect to the temporary
differences between the financial reporting and tax bases of the assets and liabilities, and were measured using the enacted tax rates
and laws which will be in effect when the differences are expected to reverse.
(q) Accounting for significant revenue and costs
The Group engages primarily in the manufacturing and sale of electronic equipment, and in installation works.
Revenue from sales of products is recognized when the product is accepted by a customer, as control of the products istransferred to the customer and performance obligations are satisfied upon the customer’s acceptance of the products.
However, in the case of domestic sales of products, revenue is recognized upon shipment if the period between the shipment of
the product and the transfer of control of the product to the customer is a normal time period.
In addition, with respect to construction contracts for which performance obligations are satisfied over time, revenue is recognizedbased on progress toward complete satisfaction of a performance obligation.
The percentage of completion is based on the costs incurred relative to the estimated total cost (input method).
(r) Research and development expenses
Research and development expenses are charged to income when incurred.
(s) Derivative financial instruments
The Company and certain consolidated subsidiaries conduct various derivative transactions in order to manage certain risks arisingfrom adverse fluctuations in interest rates. Derivative financial instruments are carried at fair value with changes in unrealized gain orloss charged or credited to operations, except for these which meet the criteria for deferred hedge accounting under which unrealized
gain or loss is deferred as a component of net assets.
Deferred hedge accounting is adopted for derivatives which qualify as hedges, under which unrealized gain or loss is deferred.
Hedging instruments are derivative transactions and hedged items are primarily interest on debts. Hedge effectiveness is notassessed if the substantial terms and conditions of the hedging instruments and the hedged items are the same.
(t) Significant accounting estimates(Impairment of fixed assets in the Industrial Systems segment)(1) The amount recorded in the consolidated financial statements for the years ended May 31, 2023 and 2022
Property, plant and equipment, intangible assets and long-term prepaid expenses belonging to certain groups of assets in the
Industrial Systems segment:(l) Accrued employees’ bonuses
Accrued employees’ bonuses are provided to cover the current fiscal year’s portion of the estimated amounts to be paid in future.

As of(m) Reserve for losses on order acknowledgements
Reserve for losses on order acknowledgements is provided at the amount estimated to cover future losses on orderacknowledgements for which losses are projected and reasonably estimable at the end of the current fiscal year. Provision of reserve
for losses on order acknowledgements in the amounts of ¥78 million ($559 thousand) and ¥99 million is included in cost of sales forthe years ended May 31, 2023 and 2022, respectively.

Impairment loss(n) Provision for product warranties
Provision for product warranties is provided at the amount estimated to cover the Company’s stand-ready obligation for repair under
product warranties for which future costs are projected and reasonably estimable at the end of the current fiscal year.
(o) Retirement benefits
Retirement benefit obligation is attributed to each period by the benefit formula method over the estimated years of service of theeligible employees.
Prior service cost is amortized as incurred by the straight-line method over a fixed period (10 years) within the average remaining
years of service of the employees.
Actuarial gain (loss) is amortized by the straight-line method over a fixed period (10 years) within the average remaining years ofservice of the employees from the following year when incurred.

51 Toyo Denki Seizo Report 2023

May 31,
2023

May 31,
2022(Millions of yen)

Property, plant and equipment, intangible assets and long-term prepaid
expenses¥

May 31,
2023(Thousands of
U.S. dollars)—¥ 2,256

3,055

3,325

$

—
21,859(2) Other information that is useful for the reader of the consolidated financial statements to understand the contents of accounting
estimates
a. Calculation method for the amounts recorded in the consolidated financial statements for the year ended May 31, 2023
In preparing the consolidated financial statements, the Group groups its assets so that the estimates on impairment of fixed
assets appropriately reflect the Group’s actual management condition, and assesses indication of impairment. Assessment of
indication of impairment is carried out based on the information available to the Group on the status of profit or loss generated
from operating activities using the assets, etc. and whether the business environment has deteriorated significantly inconnection with the business using the groups of assets. In the current fiscal year, the Group identified an indication of
impairment for some asset groups related to the Industrial Systems segment. The asset groups had recorded an operating loss
mainly due to the impact on production processes caused by the prolonged difficulty in purchasing parts and materials, as wellas the rapid electrification of testing machines for automobile development. However, the Group did not recognize an
impairment loss as the aggregated amount of undiscounted future cash flows exceeded the carrying amount of the asset
groups. The future cash flows are estimated based on the business plan approved by the management.
Toyo Denki Seizo Report 2023

52

Financial Reportb. Main assumptions used for computing the amount recorded in the consolidated financial statements for the year ended May
31, 2023
In the computation of undiscounted future cash flows, the main assumption is future net sales. Future net sales arecomputed based on historical performance and projections of order acknowledgements made mainly considering industry
trends.
c. Effects on the consolidated financial statements for the following fiscal year
Estimates on undiscounted future cash flows involve uncertainties, since they are subject to changes in demand trends ofsome customers and unforeseeable events such as natural disasters. Accordingly, when the undiscounted future cash flows
significantly differ from the assumption by the Group, the consolidated financial statements for the following year may besignificantly affected.

2. Other Explanatory Information
Note 1. U.S. Dollar Amounts
The accompanying consolidated financial statements are expressed in yen, and solely for the convenience of the reader, have beentranslated into U.S. dollars at the rate of ¥139.77=U.S.$1, the approximate rate of exchange prevailing on May 31, 2023. Thistranslation should not be construed as a representation that all amounts shown could be converted into U.S. dollars at such rate.
Note 2. Receivables and Contract Assets Arising from Contracts with Customers
Trade notes, accounts receivable and contract assets from contracts with customers as of May 31, 2023 and 2022 were as follows:
As of

May 31,
2023

May 31,
2022(Millions of yen)(u) New accounting pronouncements• Accounting Standard for Current Income Taxes (ASBJ Statement No. 27, October 28, 2022)• Accounting Standard for Presentation of Comprehensive Income (ASBJ Statement No. 25, October 28, 2022)• Guidance on Accounting Standard for Tax Effect Accounting (ASBJ Guidance No. 28, October 28, 2022)(1) Overview
The standards prescribe the accounting category of income taxes when other comprehensive income is subject to taxation and thetreatment of tax effect accounting for sale of shares of subsidiaries when the group taxation regime is applied.
(2) Scheduled date of application
The Company expects to apply these standards from the beginning of the year ending May 31, 2025.
(3) Impact of the application
The Company is currently evaluating the impact of applying these standards on the consolidated financial statements.
(v) Changes in accounting estimates(Provision for product warranties)
After updating the core system, the Company has developed a method for accumulating and collecting the data necessary to
determine future costs to repair delivered products under stand-ready obligations. As this development enables more precise
estimates, the Company changed its accounting estimates for the year ended May 31, 2023.
As a result, compared to the previous method, operating income, ordinary income and income (loss) before income taxes
decreased by ¥55 million ($399 thousand), respectively.
The amount had been included in “Reserve for losses on order acknowledgements” under “Current liabilities” in the consolidated
financial statements as of May 31, 2022. However, due to increased materiality resulting from the change in estimates, it is presented
separately as “Provision for product warranties” as of May 31, 2023. In order to reflect this change in presentation, the consolidated
financial statements as of May 31, 2022, have been reclassified.
As a result, the ¥6 million formerly included in “Reserve for losses on order acknowledgements” under “Current liabilities” as of
May 31, 2022, has been reclassified into ¥6 million in “Provision for product warranties.” Further, the ¥(0) million formerly included
in “Reserve for losses on order acknowledgements” under “Changes in operating assets and liabilities” for the year ended May 31,
2022, has been reclassified into ¥(0) million in “Provision for product warranties” under “Changes in operating assets and liabilities.”(Thousands of
U.S. dollars)

Notes receivable

¥ 377

¥ 586

$ 2,702

Accounts receivable

7,598

7,088

54,360Contract assets

5,260

4,415

37,639May 31,
2023

May 31,
2022

May 31,
2023

Note 3. Inventories
Inventories as of May 31, 2023 and 2022 were as follows:
As of(Millions of yen)(Thousands of
U.S. dollars)

Goods and finished products

¥ 376

¥ 501

$ 2,695

Work in process

3,106

3,077

22,224

Raw materials and supplies

2,836

2,688

20,293¥6,319¥6,267$45,212Inventories were stated at the lower of cost or net realizable value, and the Company recognized losses on the write-down of
inventories held for the ordinary sales purpose due to a decline in profitability in the amounts of ¥28 million ($202 thousand) and¥134 million for the years ended May 31, 2023 and 2022, respectively. These amounts were included in “Cost of sales.”Inventories related to construction contracts that are estimated to result in losses were stated after deducting the corresponding
reserve for losses on order acknowledgements in the following amounts:

As of

May 31,
2023

May 31,
2022(Millions of yen)(w) Additional information(Accounting under the group tax sharing system)
The Company and its domestic consolidated subsidiaries are shifting from the single tax filing system to the group tax sharing systemfrom the year ending May 31, 2024. Accordingly, the Company has applied the “Practical Solution on the Accounting and Disclosure
Under the Group Tax Sharing System” (ASBJ Practical Solution No. 42, August 12, 2021) to account for and disclose tax effectaccounting for national and municipal income taxes effective May 31, 2023.

53 Toyo Denki Seizo Report 2023

May 31,
2023

May 31,
2023(Thousands of
U.S. dollars)

Goods and finished products

¥12

¥ 0

$ 88

Work in process

14

153

103

¥26

¥154

$191

Toyo Denki Seizo Report 2023

54

Financial Report

Note 4. Property, Plant and Equipment
The following table sets forth the acquisition costs and related accumulated depreciation:

As of
Buildings and structures
Machinery and vehicles
Other
Accumulated depreciation

The maturities of long-term debt are summarized as follows:

May 31,
2023

May 31,
2022(Millions of yen)

¥ 9,952
8,208
5,138
23,299(18,879)¥ 4,420

May 31,
2023(Thousands of
U.S. dollars)¥ 10,326
8,185
4,977
23,488(18,444)¥ 5,044$ 71,208
58,72736,763
166,699(135,075)$ 31,623

Depreciation and amortization

May 31,
2023

May 31,
2022(Millions of yen)

¥840

2024
2025
2026
2027
2028 and thereafter

May 31,
2023(Thousands of
U.S. dollars)¥1,257$6,010

Buildings and structures
Machinery and vehicles
Other property, plant and equipment
Land

Accumulated depreciation of property, plant and equipment amounted to ¥18,879 million ($135,075 thousand) and ¥18,444
million as of May 31, 2023 and 2022, respectively.
Note 5. Investments and Other Assets
Investments in unconsolidated subsidiaries and affiliates included in “Other” under “Investments and other assets” as of May 31,
2023 and 2022 were as follows:

As ofInvestments in capital

May 31,
2023

May 31,
2022(Millions of yen)

¥1,967

May 31,
2023(Thousands of
U.S. dollars)¥2,184$14,074

Note 6. Short-Term Borrowings and Long-Term Debt
As of May 31, 2023 and 2022, short-term borrowings and the current portion of long-term debt consisted of the following:

As ofLoans, principally from banks
Current portion of long-term debt

May 31,
2023

May 31,
2022(Millions of yen)

¥ —
885
¥885

May 31,
2023(Thousands of
U.S. dollars)

¥ —
585
¥585

$ —
6,333
$6,333

The annual weighted average interest rate applicable to current-portion of long-term debt as of May 31, 2023 was 0.580%.

As of

May 31,
2023

May 31,
2022(Millions of yen)

Long-term debt, excluding current portion, serially due from 2024 through 2032

¥10,288¥11,173

The annual weighted average interest rate applicable to long-term debt as of May 31, 2023 was 0.400%.

55 Toyo Denki Seizo Report 2023

May 31,
2023(Thousands of
U.S. dollars)$73,610(Thousands of
U.S. dollars)

¥

885
4,525
4,525
515
722
¥11,173$ 6,333
32,37632,376
3,688
5,168$79,944

May 31,
2023

May 31,
2022(Millions of yen)

¥2,961
255
121
1,201
¥4,538

May 31,
2023(Thousands of
U.S. dollars)¥3,170
368
146
1,201
¥4,886$21,186
1,825
866
8,596
$32,474

The following assets included in the above are set by factory foundation fixed collateral security for short-term borrowings as of
May 31, 2023 and 2022:

As of
Buildings and structures
Machinery and vehicles
Other property, plant and equipment

May 31,
2023

May 31,
2022(Millions of yen)

¥1,278255
121¥1,654

May 31,
2023(Thousands of
U.S. dollars)¥1,380368
146¥1,894$ 9,146
1,825
866$11,837

Note 7. Retirement Benefit Plans
The Company and its consolidated subsidiaries have retirement benefit plans combined by defined contribution plans and lump-sum
payment plans.
The Company and its consolidated subsidiaries introduced a points system in the lump-sum payment plans, under which
retirement benefit amounts are computed based on the total number of points granted according to job ranking and performance.
Under the lump-sum payment plans held by certain consolidated subsidiaries, the liability for retirement benefits and retirement
benefit expenses are calculated using a simplified method.
The changes in the retirement benefit obligation during the years ended May 31, 2023 and 2022 were as follows:

For the Years Ended

As of May 31, 2023 and 2022, long-term debt was as follows:(Millions of yen)

As of May 31, 2023 and 2022, the assets pledged as collateral for short-term borrowings and long-term debt were as follows:

As ofDepreciation of property, plant and equipment for the years ended May 31, 2023 and 2022 were as follows:

For the Years Ended

Years ended May 31

Retirement benefit obligation as of June 1
Service cost
Interest cost
Actuarial gain
Retirement benefits paid
Other
Retirement benefit obligation as of May 31

May 31,
2023

May 31,
2022(Millions of yen)

¥4,113
311
15
(15)
(349)
—
¥4,075

May 31,
2023(Thousands of
U.S. dollars)¥4,124
297
15
(16)
(287)
(19)
¥4,113$29,432
2,229
108
(113)
(2,497)—$29,160

Toyo Denki Seizo Report 2023

56

Financial Report

The following table sets forth the funded status of the plans and the amounts recognized in the consolidated balance sheets as of
May 31, 2023 and 2022 for the Company’s and the consolidated subsidiaries’ defined benefit plans:

As of

May 31,
2023

May 31,
2022(Millions of yen)

May 31,
2023(Thousands of
U.S. dollars)

Unfunded retirement benefit obligation
Net liability for retirement benefits on the consolidated balance sheets¥4,075
4,075¥4,113
4,113$29,160
29,160Liability for retirement benefits
Net liability for retirement benefits on the consolidated balance sheets¥4,075
4,075¥4,113
4,113$29,160
29,160Note: The plan adopting the simplified method is included.

The components of retirement benefit expenses for the years ended May 31, 2023 and 2022 were as follows:

For the Years Ended
Service cost
Interest cost
Amortization of actuarial loss
Extraordinary payment of increased retirement benefits
Retirement benefit expenses

May 31,
2023

May 31,
2022(Millions of yen)

¥311
15
35
7
¥368

May 31,
2023(Thousands of
U.S. dollars)

¥297
15
35
11
¥359

$2,229108250
50$2,639Note 8. Net Assets
Information regarding changes in net assets for the years ended May 31, 2023 and 2022 was as follows:a. Shares issued and outstanding / treasury stock
For the year ended May 31, 2023

Number ofshares as ofJune 1, 2022

Type of shares

Increase

Decrease

Number ofshares as of
May 31, 2023

(Shares)

Shares issued:
Common stock
Treasury stock:
Common stock

9,735,000——

9,735,000

794,608

735

493,500

301,843

Decrease

Number ofshares as of
May 31, 2022

Details of the increase are as follows:
Increase due to purchase of shares of less than standard unit
Details of the decrease are as follows:
Decrease due to disposal of treasury stock through third-party allotment

735 shares
493,500 shares

For the year ended May 31, 2022

Number ofshares as ofJune 1, 2021

Type of shares

Increase(Shares)

Retirement benefits liability adjustments included in other comprehensive income (before tax effect) as of May 31, 2023 and 2022
were as follows:

As ofActuarial gain
Total

May 31,
2023

May 31,
2022(Millions of yen)

¥50
¥50

May 31,
2023(Thousands of
U.S. dollars)

¥51
¥51

$364
$364

Retirement benefits liability adjustments included in accumulated other comprehensive income (before tax effect) as of May 31,
2023 and 2022 were as follows:

As ofUnrecognized actuarial gain
Total

May 31,
2023

May 31,
2022(Millions of yen)

¥37
¥37

May 31,
2023(Thousands of
U.S. dollars)

¥88
¥88

$270
$270

Major actuarial assumptions (weighted average) used in accounting for the above plans as of May 31, 2023 and 2022 were as
follows:

For the Years Ended
Discount rate

May 31,2023
0.4%

May 31,2022
0.4%

Note: The Company does not use the expected rate of salary increase in computing retirement benefit obligation since the Company adopts the point system.

Shares issued:
Common stock
Treasury stock:
Common stock

9,735,000——

9,735,000

794,128480—

794,608

Cut-off date

Effective date

Details of the increase are as follows:
Increase due to purchase of shares of less than standard unit

480 sharesb. Dividends
1) Dividends paid
For the year ended May 31, 2023
Resolution
Annual general meetingof the shareholders on
August 25, 2022

Type of shares
Common stock

Total dividends Total dividends
Dividends per(Millions of (Thousands of Dividends per share (U.S.
yen)
U.S. dollars)
share (Yen)dollars)¥268$1,918¥30.00$0.21

Total dividends(Millions of Dividends per
yen)share (Yen)

Cut-off date

Effective date

May 31, 2022 August 26, 2022

For the year ended May 31, 2022
Resolution
Annual general meetingof the shareholders on
August 27, 2021

Type of shares
Common stock¥268¥30.00 May 31, 2021 August 30, 2021

The amounts of the required contribution to the defined contribution plans of the Company and its consolidated subsidiaries were¥113 million ($813 thousand) and ¥116 million for the years ended May 31, 2023 and 2022, respectively.

57 Toyo Denki Seizo Report 2023

Toyo Denki Seizo Report 2023

58

Financial Report2) Dividends with the cut-off date in the year ended May 31, 2023, and the effective date in the year ending May 31, 2024
Total
dividends Total dividends
Dividends per(Millions of (Thousands of Source of Dividends per share (U.S.
Type of shares
yen)
U.S. dollars) dividends
share (Yen)dollars)Cut-off date Effective date
Resolution
Annual general meetingof the shareholders on
CommonRetained
May 31,
August 30,
August 29, 2023
stock
2023
¥282
$2,024 earnings¥30.00$0.21 2023
Note 9. Selling, General and Administrative Expenses
The main components of “Selling, general and administrative expenses” for the years ended May 31, 2023 and 2022 were as follows:

For the Years Ended
Salaries and allowances
Provision for accrued directors’ bonuses
Provision for accrued employees’ bonuses
Retirement benefit expenses
Provision for allowance for doubtful accounts
Research and development expenses

May 31,
2023

May 31,
2022(Millions of yen)

¥1,811
39
292
199
0
755

May 31,
2023(Thousands of
U.S. dollars)¥1,868
6
315
202
(0)
712

$12,963
279
2,095
1,427
0
5,402

Note 10. Special Gains (Losses), Net
The components of “Special gains (losses), net” for the years ended May 31, 2023 and 2022 were as follows:

For the Years Ended
Special gains:
Gain on sales of investment securities
Gain on sales of property, plant and equipment
Gain on reversal of foreign translation adjustment
Special losses:
Business restructuring expenses
Impairment loss
Loss on valuation of investment securities
Loss on valuation of investments in capital of subsidiaries and affiliates
Total

May 31,
2023

May 31,
2022(Millions of yen)

May 31,
2023(Thousands of
U.S. dollars)

¥ 530
150
—

¥ 366
—
94

$ 3,797
1,079
—

(513)
—
—
—
¥ 167

—
(2,256)(45)(155)¥(1,996)(3,674)———$ 1,201

Gain on sales of property, plant and equipment
This item consists of a gain of ¥150 million ($1,079 thousand) on the sale of a condominium (buildings and structures, land andother assets) held by the Company.
Business restructuring expenses
Business restructuring expenses were incurred for a loss on valuation of investments in capital, attorneys’ fees and other items as
part of the Company’s restructuring of business development in China for Changzhou Yangdian Zhanyun Transport Equipment Co.,
Ltd., the Company’s unconsolidated subsidiary and Chalco-Toyo Permanent Magnet Motor Co., Ltd., the Company’s affiliate notaccounted for by the equity method.
Note 11. Income Taxes
Income taxes in Japan applicable to the Company and its domestic consolidated subsidiaries consist of corporation tax, inhabitants’taxes and enterprise tax, which, in the aggregate, resulted in a statutory rate of approximately 30.6% for the years ended May 31,
2023 and 2022. Income taxes of a foreign consolidated subsidiary are based generally on the tax rates applicable in the country ofincorporation.
The reconciliation between the effective tax rates reflected in the consolidated statements of income and the effective statutory tax
rate for the year ended May 31, 2023, was as follows:

For the Year Ended
Effective statutory tax rate
Effect of:
Non-deductible expenses for income tax purpose
Non-taxable income such as dividends income, etc.
Per capita inhabitant tax
Valuation allowance
Income from affiliates accounted for by the equity method
Difference arising from the rates used by subsidiaries
Retained profit of affiliates
Research and development tax credit
Other
Effective tax rate

May 31,
2023
30.6%
1.5
(1.4)
2.4
(2.8)
(5.9)
0.7
5.2
(1.2)
(0.6)
28.6%

The reconciliation between the effective tax rates reflected in the consolidated statements of income and the effective statutory tax
rate for the year ended May 31, 2022, is omitted since loss before income taxes was recorded for the year ended May 31, 2022.

Impairment loss
There was no applicable information for the year ended May 31, 2023.
The Group recognized an impairment loss on the following group of assets for the year ended May 31, 2022.
Loss on impairment(Millions of yen)
Location
Type of assets
Use
Manufacturing equipment of
Toyo Denki Seizo K.K. Shiga Ryuo plant
Buildings, etc.
¥2,256
Industrial Systems(Ryuo-cho, Shiga Pref.)In assessing impairment losses, the Group groups its business assets based on business classification for management
accounting purposes under which income and expenditure are managed on an ongoing basis.
Since the future cash flows were lower than the carrying value of the asset group due to a deterioration in the earnings
environment, the value of various fixed assets was reduced to their recoverable amount and the reduced amount was recorded as an
impairment loss under special losses. The recoverable amount is measured using the value in use and calculated by discounting thefuture cash flows at 4.8%.
The above assets consist of buildings and structures in the amount of ¥2,046 million, machinery, equipment and vehicles in theamount of ¥178 million and land in the amount of ¥30 million.

59 Toyo Denki Seizo Report 2023

Toyo Denki Seizo Report 2023

60

Financial Report

The significant components of deferred tax assets and liabilities as of May 31, 2023 and 2022 were as follows:

May 31,
2023

As of

May 31,
2022

May 31,
2023(Millions of yen)

Deferred tax assets:
Write-down of inventories
Impairment loss
Liability for retirement benefits
Accrued employees’ bonuses
Reserve for losses on order acknowledgements
Provision for product warranties
The carryforward of unused tax losses (Note 2)
Other
Total gross deferred tax assets
Valuation allowance for the carryforward of unused tax losses (Note 2)
Valuation allowance for deductible temporary differences
Total valuation allowance (Note 1)
Total deferred tax assets
Deferred tax liabilities:
Unrealized holding gain on securities
Other
Total deferred tax liabilities
Net deferred tax assets¥

Year ended May 31, 2022

(Thousands of
U.S. dollars)

353
661
1,255
243
123
21
121
387
3,168
(116)
(442)
(559)
2,608

¥ 307
691
1,266
252
131
2
129
496
3,278
(129)
(462)
(592)
2,686

$ 2,532
4,732
8,980
1,744
883
154
868
2,770
22,667(835)(3,168)(4,001)
18,666(2,371)(128)(2,500)¥ 108(1,736)(65)(1,802)¥ 883(16,968)(921)(17,889)$ 776(Note 1) Valuation allowance decreased by ¥32 million ($231 thousand) due primarily to a decrease for tax loss carryforwards as well
as a decrease due to an addition to deferred tax assets.
(Note 2) The breakdown of the carryforward of unused tax losses and valuation allowance by expiry date is as follows:Year ended May 31, 2023

(Millions of yen)
The carryforward of unused
tax losses (a)Valuation allowance
Deferred tax assets(Thousands of U.S.
dollars)
The carryforward of unused
tax losses (a)Valuation allowance
Deferred tax assets

Due after
One Yearthrough
Two Years

Due after
Two Years
throughThree Years

Due afterThree Years
through
Four Years

Due after
Four Years
throughFive Years

Due after
Five Years

¥—

¥—

¥—

¥ 5

¥ 47

¥ 68

¥ 121

—
—

—
—

—
—

(1)
4

(47)
—

(68)
—

(116)
4(b)

Due inOne Year or Less

Total

Due after
One Yearthrough
Two Years

Due after
Two Years
throughThree Years

Due afterThree Years
through
Four Years

Due after
Four Years
throughFive Years

Due after
Five Years

$—

$—

$—

$ 41

$ 336

$ 490

$ 868

—
—

—
—

—
—

(8)
33

(336)
—

(490)
—

(835)
33(b)

Due inOne Year or Less

Total(a) The amount is determined by multiplying the corresponding carryforward of unused tax losses by the effective statutory tax rate.
(b) Deferred tax assets of ¥4 million ($33 thousand) are recognized for the carryforward of unused tax losses of ¥121 million ($868
thousand) (amount multiplied by the effective statutory tax rate). The said deferred tax assets of ¥4 million ($33 thousand) arerecognized for the carryforward of unused tax losses of ¥96 million (690 thousand) (amount multiplied by the effective statutory
tax rate) of TD Drive Manufacturing Co., Ltd., which is a consolidated subsidiary of the Company.

61 Toyo Denki Seizo Report 2023

(Millions of yen)
The carryforward of unused
tax losses (a)Valuation allowance
Deferred tax assets

Due after
One Yearthrough
Two Years

Due after
Two Years
throughThree Years

Due afterThree Years
through
Four Years

Due after
Four Years
throughFive Years

Due after
Five Years

¥ 5

¥—

¥—

¥—

¥ 12

¥ 111

¥ 129

¥ (5)
—

—
—

—
—

—
—

(12)
—

(111)
0

(129)
0(b)

Due inOne Year or Less

Total(a) The amount is determined by multiplying the corresponding carryforward of unused tax losses by the effective statutory tax rate.
(b) Deferred tax assets of ¥0 million are recognized for the carryforward of unused tax losses of ¥129 million (amount multiplied by
the effective statutory tax rate). The said deferred tax assets of ¥0 million are recognized for the carryforward of unused tax lossesof ¥20 million (amount multiplied by the effective statutory tax rate) of Toyo Shoji Co., Ltd., which is a consolidated subsidiary of
the Company.
(Accounting under the group tax sharing system)
The Company and its domestic consolidated subsidiaries are shifting from the single tax filing system to the group tax sharing systemfrom the year ending May 31, 2024. Accordingly, the Company has applied the “Practical Solution on the Accounting and Disclosure
Under the Group Tax Sharing System” (ASBJ Practical Solution No. 42, August 12, 2021) to account for and disclose tax effectaccounting for national and municipal income taxes effective May 31, 2023.
Note 12. Other Comprehensive Income (Loss)
The following table presents reclassification adjustments and tax effects allocated to each component of other comprehensive income(loss) for the years ended May 31, 2023 and 2022:

For the Years Ended

May 31,
2023

May 31,
2022(Millions of yen)

May 31,
2023(Thousands of
U.S. dollars)

Unrealized holding gain (loss) on securities:
Amount arising during the year
Reclassification adjustments for gains and losses included in net income
Amount before tax effectTax effectUnrealized holding gain (loss) on securities¥1,560
530
2,091
(635)
1,456

¥(1,655)366(1,289)399(889)$11,166
3,797
14,963(4,543)
10,420Translation adjustments
Amount arising during the year
Reclassification adjustments for gains and losses included in net income
Amount before tax effectTranslation adjustments

—
—
—
—

—
2
2
2

—
—
—
—

Retirement benefits liability adjustments
Amount arising during the year
Reclassification adjustments for gains and losses included in net income
Amount before tax effectTax effect
Retirement benefits liability adjustments

15
35
50
(15)
35

24
26
51
(15)
35

113
250
364
(111)
252

57

53

412

57
¥1,54953¥ (797)412$11,085

Share of other comprehensive income of affiliates accounted for by the equity
methodAmount arising during the year
Share of other comprehensive income of affiliates accounted for by theequity method
Total other comprehensive income (loss)

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Financial Report

Note 13. Lease Transactions
Information on finance leases that do not transfer ownership of the leased property to the lessee is omitted since there is nomateriality in terms of value.
Note 14. Contingent Liabilities
As of May 31, 2023 and 2022, the Company was committed to provide guarantees on bank borrowings of the following affiliates:

As of

May 31,
2023

May 31,
2022(Millions of yen)

May 31,
2023(Thousands of
U.S. dollars)

¥325
231

¥316
224

$2,327
1,654

For the Years Ended

May 31,
2023

May 31,
2022

May 31,2023

Net income (loss):
Basic¥91.85¥(104.02)

As of

May 31,
2023

May 31,2022

Net assets¥2,605.99

Changzhou Ruiyang Transmission Technology Co., Ltd.
Beijing Jingche Shuangyang Traction System Co., Ltd.
Note 15. Amounts Per Share(Yen)(U.S. dollars)

(Yen)

$0.66
May 31,
2023(U.S. dollars)¥2,462.17$18.64

Note: Diluted net income per share is omitted for the year ended May 31, 2023 since there is no dilution of equity. Diluted net income per share is omitted for the year ended
May 31, 2022 since there is no dilution of equity and the Company recorded net loss per share for the period.

The bases for calculation are as follows:
Basic net income (loss) per share

For the Years Ended

May 31,
2023

May 31,
2022(Millions of yen)

Net income (loss) attributable to owners of the parent
Net income (loss) not attributable to common shareholders
Net income (loss) attributable to owners of the parent related to common stock

¥824
—
824

Average number of shares of common stock during the year

8,977

May 31,
2023(Thousands of
U.S. dollars)¥(930)—(930)$5,899—5,899(3) Risk management for financial instruments(a) Monitoring of credit risk (the risk that customers or counterparties may default)
In accordance with the internal policies of the Group for managing credit risk arising from receivables, each related division monitors
credit worthiness of their main customers periodically, and monitors due dates and outstanding balances by individual customer. In
addition, the Group is making efforts to identify and mitigate risks of bad debts from customers who are having financial difficulties.
Investment securities are composed of mainly the shares of common stock of highly rated companies with which the Group hasbusiness relationships. Accordingly, the Group believes that the credit risk deriving from such investment securities is insignificant.
The Group also believes that the credit risk of derivatives is insignificant as it enters into derivative transactions only with financial
institutions that have sound credit profiles.
(b) Monitoring of market risks (the risk arising from fluctuations in foreign exchange rates, interest rates and others)
The Group utilizes interest rate swap transactions to reduce interest rate fluctuation risk on long-term debt.
For investment securities, the Group periodically reviews the fair values of such financial instruments and the financial positions of
the issuers.
In conducting derivative transactions, the division in charge of each derivative transaction follows the internal policies, which set
forth delegation of authority and position limits. Monthly reports including data on actual transactions are submitted to the Board of
Directors for review.
(c) Monitoring of liquidation risk (the risk that the Group may not be able to meet its obligations on scheduled due dates)
Based on the reports from each division, the Group prepares and updates its cash flow plans on a timely basis to manage liquidationrisk.
(4) Supplementary explanation of the estimated fair value of financial instruments
Since various assumptions and factors are reflected in estimating the fair value, different assumptions and factors could result indifferent fair values. In addition, the notional amounts of derivatives in Note 19, Derivative Transactions are not necessarily indicativeof the actual market risk involved in derivative transactions.
Fair value of financial instruments(Thousand shares)

8,940

Note 16. Financial Instruments
Overview(1) Policy for financial instruments
The Group raises the necessary funds for capital investment to reinforce and renew production facilities and working capital
principally through bank borrowings. The Group manages temporary cash surpluses through low-risk financial assets. The Group
uses derivatives in order to avoid the following risks, and does not enter into derivatives for speculative or trading purposes.
(2) Types of financial instruments and related risk
Trade receivables—trade notes and accounts receivable and electronically recorded receivables—are exposed to credit risk in relation
to customers. Trade receivables denominated in foreign currencies arising from international business are exposed to foreignexchange fluctuation risk, but the Group utilizes forward foreign exchange contracts as hedging instruments to reduce such risk.

63 Toyo Denki Seizo Report 2023

Investment securities are composed of mainly the shares of common stock of other companies with which the Group has business
relationships and exposed to market risk.
Certain long-term debt raised for the purpose of making capital investments with variable interest rates is exposed to interest rate
fluctuation risk. However, to reduce such risk and fix interest expense for long-term debt bearing interest at variable rates, the Grouputilizes interest rate swap transactions as a hedging instrument.
Regarding hedging instruments and hedged items in hedge accounting, hedging policy, and assessment of the effectiveness ofhedging activities, etc., please see “1. Summary of Significant Accounting Policies (s) Derivative financial instruments.”

The carrying value and fair value of financial instruments on the consolidated balance sheets as of May 31, 2023 and 2022, anddifferences between the two, are shown in the following table.

As of May 31, 2023

Carrying value

Fair value

Difference(Millions of yen)

AssetsInvestment securities*1
Total assets
Liabilities
Long-term debt*2
Total liabilities¥13,226¥13,226¥13,226¥13,226¥—¥—¥11,173¥11,173¥11,178¥11,178¥ 4¥ 4

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Financial Report

As of May 31, 2023

Carrying value

Fair value

Difference(Thousands of U.S. dollars)

As of May 31, 2023

AssetsInvestment securities*1
Total assets
Liabilities
Long-term debt*2
Total liabilities$94,629$94,629$94,629$94,629$—$—$79,944$79,944$79,978$79,978$ 34$ 34*1 Investment securities
The fair value of investment securities is determined based on quoted prices on the stock exchange.
Securities are held as available-for-sale securities. For notes on these securities, see Note 17 “Securities.”*2 Long-term debt
The fair value of long-term debt is based on the present value of the total of principal and interest discounted by the interest rate to be applied if similar new borrowings
were entered into. The fair value of long-term debt with variable interest rates, which is hedged by the interest rate swaps and to which hedge accounting is applied, isbased on the present value of the total of principal and interest discounted by the interest rate to be applied if similar new borrowings were entered into. The current
portion of long-term debt is included in the above table.

As of May 31, 2022

Carrying value

Fair value

Difference(Millions of yen)

AssetsInvestment securities*1
Total assets
Liabilities
Long-term debt*2
Total liabilities¥11,408¥11,408¥11,408¥11,408¥—¥—¥11,759¥11,759¥11,770¥11,770¥ 10¥ 10*1 Investment securities
The fair value of investment securities is determined based on quoted prices on the stock exchange.
Securities are held as available-for-sale securities. For notes on these securities, see Note 17 “Securities.”*2 Long-term debt
The fair value of long-term debt is based on the present value of the total of principal and interest discounted by the interest rate to be applied if similar new borrowings
were entered into. The fair value of long-term debt with variable interest rates, which is hedged by the interest rate swaps and to which hedge accounting is applied, isbased on the present value of the total of principal and interest discounted by the interest rate to be applied if similar new borrowings were entered into. The current
portion of long-term debt is included in the above table.

Notes:
1. Cash on hand and in banks, trade notes and accounts receivable, electronically recorded receivables, trade notes and accounts
payable, electronically recorded payables, short-term borrowings, income taxes payable, etc. are omitted since these items aresettled in a short period of time and their carrying value approximates their fair value.
2. Equity securities without market quotation, etc. are not included in the above investment securities. The carrying value of suchfinancial instruments is as follows:

May 31,
2023

As of

May 31,
2022(Millions of yen)

¥1,062Unlisted equity securities

May 31,
2023(Thousands of
U.S. dollars)¥1,062$7,602

3. Redemption schedule for receivables and securities with maturities on May 31, 2023 and 2022 were as follows:

As of May 31, 2023

Due in One
Year or Less

Due after
One YearthroughFive Years

Due after
Five Years
throughTen Years

Due after
Ten Years(Millions of yen)

Cash on hand and in banks
Trade notes and accounts receivable
Electronically recorded receivables

65 Toyo Denki Seizo Report 2023

¥ 5,520
7,942
1,116¥14,579

¥—
33
—
¥ 33

¥—
—
—
¥—

¥—
—
—
¥—

Due in One
Year or Less

Due after
One YearthroughFive Years

Due after
Five Years
throughTen Years

Due after
Ten Years(Thousands of U.S. dollars)

Cash on hand and in banks
Trade notes and accounts receivable
Electronically recorded receivables

As of May 31, 2022

$ 39,493
56,825
7,991$104,311

$—
237
—
$237

$—
—
—
$—

$—
—
—
$—

Due in One
Year or Less

Due after
One YearthroughFive Years

Due after
Five Years
throughTen Years

Due after
Ten Years(Millions of yen)

Cash on hand and in banks
Trade notes and accounts receivable
Electronically recorded receivables¥ 4,449
7,643
1,136¥13,229

¥—
32
—
¥ 32

¥—
—
—
¥—

¥—
—
—
¥—

4. The redemption schedule for long-term debt is disclosed in Note 6.
Fair value information by level within the fair value hierarchy
The fair value of financial instruments is classified into the following three levels according to the observability and materiality of
inputs used to measure fair value.
Level 1 fair value: Fair value measured using (unadjusted) quoted prices in active markets for assets or liabilities that are thesubject of the measurement.
Level 2 fair value: Fair value measured using directly or indirectly observable inputs other than Level 1 inputs.
Level 3 fair value: Fair value measured using significant unobservable inputs.
If multiple inputs that are significant to the fair value measurement are used, the fair value measurement is categorized in its entirety
in the level of the lowest level input that is significant to the entire measurement.
(1) Financial assets and liabilities measured at fair value

As of May 31, 2023

Fair value
Level 1

Level 2

Level 3

Total

(Millions of yen)

Investment securities:
Available-for-sale securities:
Equity securities
Total financial assets
Not applicable to financial liabilities

As of May 31, 2023

¥13,226¥13,226

¥—
¥—

¥—
¥—

¥13,226¥13,226

Fair value
Level 1

Level 2

Level 3

Total

(Thousands of U.S. dollars)

Investment securities:
Available-for-sale securities:
Equity securities
Total financial assets
Not applicable to financial liabilities$94,629$94,629

$—
$—

$—
$—

$94,629$94,629

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66

Financial Report

As of May 31, 2022

Note 17. Securities

Fair value
Level 1

Level 2

Level 3

Total

(Millions of yen)

Investment securities:
Available-for-sale securities:
Equity securities
Total financial assets
Not applicable to financial liabilities

Available-for-sale securities¥11,408¥11,408

¥—
¥—

¥—
¥—

¥11,408¥11,408(2) Financial assets and liabilities other than those measured at fair value

As of May 31, 2023

Fair value
Level 1

Level 2

Level 3

Total

(Millions of yen)

Not applicable to financial assets
Long-term debt
Total financial liabilities

As of May 31, 2023¥—¥—

¥11,178¥11,178¥—¥—¥11,178¥11,178

Fair value
Level 1

Level 2

Level 3

Total

(Thousands of U.S. dollars)

Not applicable to financial assets
Long-term debt
Total financial liabilities

As of May 31, 2022$—$—

$79,978$79,978$—$—$79,978$79,978

Fair value
Level 1

Level 2

Level 3

Total

(Millions of yen)

Not applicable to financial assets
Long-term debt
Total financial liabilities

Information regarding securities classified as available-for-sale securities¥—¥—¥11,770¥11,770¥—¥—¥11,770¥11,770

As of May 31, 2023

Carrying value Acquisition cost

Unrealized
gain (loss)(Millions of yen)

Securities for which carrying value exceeds acquisition cost:
Stock
Subtotal
Securities for which acquisition cost exceeds carrying value:
Stock
Subtotal
Total

As of May 31, 2023

¥13,162¥13,162¥5,411¥5,411¥7,751¥7,751¥
63¥
63¥13,226¥ 72¥ 72¥5,484¥ (9)¥ (9)¥7,741

Carrying value Acquisition cost

Unrealized
gain (loss)(Thousands of U.S. dollars)

Securities for which carrying value exceeds acquisition cost:
Stock
Subtotal
Securities for which acquisition cost exceeds carrying value:
Stock
Subtotal
Total$94,175$94,175$38,717$38,717$55,458$55,458

$ 453
$ 453
$94,629

$ 521
$ 521
$39,238$ (68)$ (68)$55,390

Note: Acquisition cost in the above table represents carrying value reflecting impairment losses.
If the market value of the securities declines by 50% or more from the acquisition cost as of the end of the fiscal year, the Group recognizes the difference between themarket value and the acquisition cost as an impairment loss. If the decline ranges between about 30% and 50%, the Group recognizes an impairment loss for thenecessary amount considering its recoverability.

As of May 31, 2022

Carrying value Acquisition cost

Unrealized
gain (loss)(Millions of yen)

Note: A description of the valuation techniques and inputs used in the fair value measurements
Investment securities
The fair value of listed equity securities is based on quoted market prices. As listed equity securities are traded in active markets, theirfair value is classified as Level 1.
Long-term debt
The fair value of long-term debt is based on the present value of the total of principal and interest discounted by the interest rate to be
applied if similar new borrowings were entered into. The fair value of long-term debt with variable interest rates, which is hedged by
the interest rate swaps and to which hedge accounting is applied, is based on the present value of the total of principal and interest
discounted by the interest rate to be applied if similar new borrowings were entered into. The fair value of long-term debt is classified
as Level 2.
The fair value of long-term debt includes the current portion of long-term debt.

Securities for which carrying value exceeds acquisition cost:
Stock
Subtotal
Securities for which acquisition cost exceeds carrying value:
Stock
Subtotal
Total¥5,539¥5,539¥5,666¥5,666¥ 202¥ 202¥11,408

¥ 218
¥ 218
¥5,758¥ (15)¥ (15)¥5,650Note: Acquisition cost in the above table represents carrying value reflecting impairment losses. In the year ended May 31, 2022, the Company recognized loss on valuationof investment securities in the amount of ¥45 million.
If the market value of the securities declines by 50% or more from the acquisition cost as of the end of the fiscal year, the Group recognizes the difference between themarket value and the acquisition cost as an impairment loss. If the decline ranges between about 30% and 50%, the Group recognizes an impairment loss for thenecessary amount considering its recoverability.

Information regarding available-for-sale securities soldFor the Years Ended
Stock:
Sales proceeds
Gain on sales
Loss on sales

67 Toyo Denki Seizo Report 2023

¥11,205¥11,205

May 31,
2023

May 31,
2022(Millions of yen)

¥818
530
—

May 31,
2023(Thousands of
U.S. dollars)

¥466
366
—

$5,856
3,797—

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68

Financial Report

Note 18. Supplementary Cash Flow Information
Cash and cash equivalents in the consolidated statements of cash flows for the years ended May 31, 2023 and 2022 were reconciled
to cash on hand and in banks in the consolidated balance sheets as follows:

As ofCash on hand and in banks
Cash and cash equivalents

May 31,
2023

May 31,
2022(Millions of yen)

¥5,520¥5,520¥4,449¥4,449May 31,
2023(Thousands of
U.S. dollars)$39,493$39,493

Note 20. Revenue Recognition
1. Disaggregation of revenue from contracts with customers
Information about disaggregation of revenue arising from contracts with customers is as follows:

Reportable segment:
Transportation Systems

Note 19. Derivative Transactions
Hedging policies
The Company utilizes forward foreign exchange contracts and interest rate swaps for the purpose of hedging its exposure tofluctuations in foreign exchange rates and interest rates, respectively. However, based on internal management rules on financial
market risk approved by the Company’s Board of Directors, Group companies do not enter into transactions involving derivatives for
speculative or trading purposes.
Types and purpose of derivative transactions
The Company primarily uses forward foreign exchange contracts to hedge against fluctuations in foreign currency exchange rates on
trade receivables denominated in foreign currencies, and interest rate swaps to hedge against the adverse impact of fluctuations ininterest rates on interest-bearing debt.
Derivative transactions to which hedge accounting is not applied:
As of May 31, 2023 and 2022, there were no currency-related derivatives.
Derivative transactions to which hedge accounting is applied:
As of May 31, 2023 and 2022, there were no interest-related derivatives.

May 31,2023

For the Years Ended

Industrial Systems

ICT Solution Systems

May 31,
2022(Millions of yen)Domestic railway
Overseas railway
Other
Subtotal
Processing machine
Testing machinePower generator/power source
Other
Subtotal
ICT solutions
Subtotal

Other (Note)
Total
Revenue arising from contracts withcustomers
Sales to third parties

May 31,
2023(Thousands of
U.S. dollars)¥13,333
4,492
2,031¥19,857¥ 3,321
2,341
1,561
2,680
¥ 9,905¥ 1,256¥ 1,256¥
6¥31,025¥14,705
2,831
1,919¥19,456¥ 2,719
2,173
2,187
2,822
¥ 9,902
¥ 790
¥ 790
¥
9
¥30,158$ 95,393
32,144
14,531$142,069$ 23,765
16,753
11,16919,180$ 70,868$ 8,991$ 8,991$
45$221,974¥31,025¥30,158$221,974¥31,025¥30,158$221,974

Note: “Other” represents business units which are not included in reportable segments and consists of worker dispatching services related activities, etc.
From the year ended May 31, 2023, the Group has renamed the Information Equipment Systems segment as the “ICT Solution Systems” segment. Accordingly, thesegment in the previous year is presented under the new name. This change does not have an impact on the information about disaggregation of revenue arising fromcontracts with customers by reportable segments.

2. Useful information in understanding revenue from contracts with customers
This information is as stated in (q) Accounting for significant revenue and costs under 1. Summary of Significant Accounting Policies.
Consideration for performance obligations is usually received within one year of satisfying the performance obligations and does
not include any significant financing component.
3. Balance of contract assets and liabilities and the transaction price allocated to the remaining performance obligations(1) Balance of contract assets and liabilities

As of
Receivables from contracts with customers (beginning balance)
Receivables from contracts with customers (ending balance)
Contract assets (beginning balance)
Contract assets (ending balance)
Contract liabilities (beginning balance)
Contract liabilities (ending balance)

May 31,
2023

May 31,
2022(Millions of yen)

¥8,812
9,092
4,415
5,260
47
84

May 31,
2023(Thousands of
U.S. dollars)¥10,280
8,812
3,838
4,415
34
47

$63,046
65,05531,594
37,639342
606

Contract assets relate to the right of the Group to consideration for contracts with customers which have been completed but an
invoice has not yet been issued as of the end of the fiscal period. Once the Group has an unconditional right to consideration, it
reclassifies contract assets to receivables from contracts with customers.
Contract liabilities primarily relate to advances received from customers based on the contracts with customers before theperformance obligation is satisfied. Contract liabilities are reversed as revenue is recognized.
Revenue recognized in the years ended May 31, 2023 and 2022 that was included in the contract liability balance at the beginningof the year was ¥45 million ($322 thousand) and ¥27 million, respectively.

69 Toyo Denki Seizo Report 2023

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Financial Report(2) Transaction price allocated to the remaining performance obligations
The total transaction prices allocated to the remaining performance obligations as of May 31, 2023 and 2022 were ¥29,496 million($211,034 thousand) and ¥27,275 million, respectively, and the Group expects to recognize revenue mainly within a period of one tothree years as such remaining performance obligations are satisfied.

For the year ended May 31, 2023
Reportable segments
Transportation
Industrial
ICT Solution
Other
Systems
Systems
Systems(Note)
Total

Adjustments

Consolidated(Thousands of U.S. dollars)Note 21. Segment Information
The reportable segments of the Group are components for which discrete financial information is available and whose operating
results are regularly reviewed by the Board of Directors to make decisions about resource allocation and assess performance.
The Group establishes business units by product, and each business unit designs domestic and overseas comprehensive
strategies for its products and develops business activities. Accordingly, the Group consists of the three reportable segments byproduct based on the business units, which are Transportation Systems, Industrial Systems and ICT Solution Systems.
From the year ended May 31, 2023, the Group has renamed the Information Equipment Systems segment as the “ICT Solution
Systems” segment. This change does not have an impact on segment information.
Accordingly, the segment in the previous year is presented under the new name.
The accounting policies of the segments are substantially the same as those described in the significant accounting policies in “1.
Summary of Significant Accounting Policies.” Segment profit is evaluated based on operating income.
Inter-segment sales are recorded at the same prices used in transactions with third parties.

For the year ended May 31, 2023
Reportable segments
Transportation
Industrial
ICT Solution
Other
Systems
Systems
Systems(Note)
Total

Sales, profits orlosses and asset byreportable segment
Net sales:
Sales to third parties
Inter-segment sales
and transfers$142,069$70,868$8,991$45$221,974$—$221,974

Segment profit (loss)
Segment assets

240
142,310$ 16,164$110,150

7
70,876$ 3,427$82,847—
8,991$2,960$5,9762,144
2,189$ (107)$3,055

2,392
224,367$ 22,445$202,030(2,392)(2,392)$ (18,742)$153,426—
221,974$ 3,703$355,456

Other items:
Depreciation
Capital expenditures$ 2,979$ 1,204$ 2,412
$ 489

$ 134
$ 28

$
$

$ 5,546$ 1,736$$$ 6,010$ 2,218

Segment profit (loss)
Segment assets
Other items:
Depreciation
Capital expenditures

464
482

Note: “Other” represents business units that are not included in reportable segments, and consists of worker dispatching services related activities, etc.

Adjustments

For the year ended May 31, 2022

Consolidated

Reportable segments
Transportation
Industrial
ICT Solution
Systems
Systems
Systems(Millions of yen)

Sales, profits orlosses and asset byreportable segment
Net sales:
Sales to third parties
Inter-segment sales
and transfers

19
14

Other
(Note)

Total

Adjustments

Consolidated(Millions of yen)

¥19,857¥ 9,905¥1,256¥ 6¥31,025¥—¥31,02533
19,890¥ 2,259¥15,395

1
9,906
¥ 479
¥11,579

—
1,256
¥ 413
¥ 835

299
306
¥ (14)¥427

334
31,359¥ 3,137¥28,237

(334)
(334)
¥ (2,619)¥21,444—
31,025¥ 517¥49,682

¥
¥

416
168

¥
¥

337
68

¥
¥

18
3

¥ 2
¥ 1

¥
¥

775
242

¥
¥

64
67

¥
¥

840
310

Sales, profits orlosses and asset byreportable segment
Net sales:
Sales to third parties
Inter-segment sales
and transfers¥19,456¥ 9,902¥790¥ 9¥30,158¥—¥30,158

Segment profit (loss)
Segment assets

10
19,467¥ 2,190¥16,276

0
9,903
¥ 477
¥10,068

—
790
¥142
¥691

329
338
¥ (19)¥434

340
30,499¥ 2,791¥27,471

(340)
(340)
¥ (2,619)¥19,444—
30,158¥ 171¥46,916

Other items:
Depreciation
Capital expenditures

¥
¥

¥
¥

¥ 21
¥ 4

¥ 3
¥—

¥ 1,008¥ 284¥¥¥ 1,257
¥ 315

513
164

470
115

248
31

Note: “Other” represents business units that are not included in reportable segments, and consists of worker dispatching services related activities, etc.

Geographical information
Net sales to third parties by countries or areas grouped according to geographical classification for the years ended May 31, 2023
and 2022 were summarized as follows:

For the Years Ended

May 31,
2023

Japan
China
Other
Consolidated¥24,915
4,536
1,574¥31,025

May 31,
2022(Millions of yen)

May 31,
2023(Thousands of
U.S. dollars)¥25,779
3,015
1,363¥30,158$178,257
32,455
11,262$221,974

Note: Net sales information above is based on customers’ location.

71 Toyo Denki Seizo Report 2023

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Major customer information
Major customer information for the years ended May 31, 2023 and 2022 was omitted since there was no customer to which sales
exceeded 10% of net sales recorded in the accompanying consolidated statements of income.
Information about impairment loss on property, plant and equipment
There was no applicable information for the year ended May 31, 2023.

For the year ended May 31, 2022
Reportable segments
Transportation
Industrial
ICT Solution
Other
Systems
Systems
Systems(Note)
Total

Adjustments

Consolidated(Millions of yen)

Impairment loss¥—

¥2,256Note 22. Significant Subsequent Events
There were no significant subsequent events to be noted.

73 Toyo Denki Seizo Report 2023¥—¥—

¥2,256¥—¥2,256