Financial Results for the Second Quarter Ended April 30, 2023
[Japan GAAP] (Consolidated)
Date:
Company Name and Code:June 12, 2023
Tomoe Engineering Co., Ltd. and Subsidiaries - 6309
(URL: http://www.tomo-e.co.jp/index_e.html)
Stock exchange listing:
1st Section, Tokyo Stock Exchange
Head Office:5-15, Kitashinagawa 5-chome, Shinagawa-ku, Tokyo, Japan
President:
Akitomo Tamai
Investor Relations Contacts:
Kazuyuki Kitta, Director & Executive Officer, Accounting & Cooperate Planning Dept.
Tel: (03) 3442-5127
Date to report Quarterly Consolidated Financial Statement: June 14, 2023
Date for Dividend Payment:
July 10, 2023
Preparation of Supplementary Explanatory Materials for Quarterly Operating Results: Yes
Briefing Session for Quarterly Operating Results: Yes (For analysts and institutional investors)* Any fractional sums less than one million (or one thousand) yen are disregarded
1. Consolidated Financial Data for the Second Quarter Ended April 30, 2023
(1) Results of Operation (Consolidated)

Quarter Ended April 30, 2023
Quarter Ended April 30, 2022

(Percent: Change from the same quarter of the previous year)
Net Sales
Operating Income
Ordinary Income
Millions ofMillions ofMillions of
Yen
Percent
Yen
Percent
Yen
Percent
24,155
9.9
2,062
14.5
2,075
10.4
21,972
1,802
-6.8
1,879
-4.1

Net Income Attributable to
Owners of the Parent
Millions of
Yen
Percent
1,416
-11.3
1,595
9.4

Net Income per Share

Fully Diluted Quarterly
Net Income per ShareYen
141.91
159.94

Yen-

Total Assets (A)(Millions of Yen)
47,00545,742

Net Assets (B)(Millions of Yen)
35,34934,387

Net Assets Ratio(B) / (A) (Percent)
75.2
75.2

Quarter Ended April 30, 2023
Quarter Ended April 30, 2022
(Note) Comprehensive income
Second Quarter ended April 30, 2023: 1,240 million yen (-29.8%) Second Quarter ended April 30, 2022: 1,763 million yen (6.1%)(Note) We have applied Accounting Standard for Revenue Recognition (ASBJ Statement No. 29) from the beginningof the consolidated first quarter of the previous fiscal year ending October 31, 2022. Because a significant impact on
net sales arises, the year-on-year percentage change in net sales is not shown.
(2) Financial Condition (Consolidated)
Quarter Ended April 30, 2023
Year Ended October 31, 2022

(Reference) Net assets
Second Quarter ended April 30, 2023: 35,349 million yen

Year Ended October 31, 2022: 34,387 million yen

2. Dividend Status(Record Date)
Year Ended October 31, 2022
Year Ending October 31, 2023
Year Ending October 31, 2023 (Prospect)First
Quarter-Interim
Term
25.00
40.00

Annual Dividend (Yen)Third
End ofQuarter
Fiscal Year
28.00

(Note) Revisions since the most recently released dividend projection: None

-

40.00

Annual53.00
80.00

3. Forecast for Earnings for the Year Ending October 31, 2023 (Consolidated)(Percent change from the previous Full Business Year)Net Sales
Operating Income
Ordinary Income(Millions of Yen) (Percent) (Millions of Yen) (Percent) (Millions of Yen) (Percent)
Full Business Year48,460
6.3
3,590
8.8
3,600
5.2
Net Income Attributable to Net Income per ShareOwners of the Parent(Millions of Yen) (Percent)
Yen
Full Business Year
2,430
-8.6
243.53(Note) Revisions since the most recently released earnings forecast: None
Notes(1) Significant changes in subsidiaries during this period (changes in specific subsidiaries involving changes in thescope of consolidation): None
Number of new subsidiaries: __(Company names):
Number of eliminated subsidiaries: __(Company names):(2) Adoption of the specific accounting method to create quarterly consolidated financial statements: None
(3) Changes in accounting policies, accounting estimates, and retrospective restatements.
1) Change in accounting policies due to revision of accounting standard: Yes
2) Other changes than the above 1): None
3) Change in accounting estimates: None
4) Retrospective restatements: None
(4) Number of outstanding shares (Common stock)1) Number of outstanding shares as of quarter-end and year-end (including treasury stocks)
At April 30, 2023: 10,533,200 shares

At October 31, 2022: 10,533,200 shares

2) Number of treasury stocks as of quarter-end and year-end
At April 30, 2023: 554,940 shares

At October 31, 2022: 554,940 shares

3) Number of average shares (accumulated quarterly total)
At April 30, 2023: 9,978,260 shares

At April 30, 2022: 9,978,278 shares*The quarterly earnings report is exempt from the quarterly review by certified public accountant or audit firm.
*Explanations for appropriate use of the earnings forecast and other special instructions
The forward-looking statements such as a forecast of our financial results described herein are based on theinformation currently available to us and certain assumptions that we believe are reasonable. Actual results could differ
materially due to various factors.
Please refer to the Attachments on page 4, (3) [Analysis of Future Forecast on Quarterly Consolidated Earnings
Forecast] of 1. [Qualitative Information on Quarterly Consolidated Operating Results] for the operating results forecast.

Table of Contents (Supporting Data)
1. Qualitative Information on Quarterly Consolidated Operating Results ....................................................2(1) Analysis of Operating Results ................................................................................................................................2(2) Analysis of Financial Condition ..............................................................................................................................4(3) Analysis of Future Forecast on Quarterly Consolidated Earnings Forecast .......................................................4
2. Quarterly Consolidated Financial Statements and Notes ...............................................................................................5(1) Quarterly Consolidated Balance Sheet ....................................................................................................5(2) Quarterly Consolidated Statement of Income & Quarterly Consolidated Statement of Comprehensive
Income ......................................................................................................................................7
Quarterly Consolidated Statement of Income ..............................................................................................7
Quarterly Consolidated Statement of Comprehensive Income .....................................................................8(3) Quarterly Consolidated Statement of Cash Flows ..............................................................................................9(4) Notes on Quarterly Consolidated Financial Statements ...................................................................................11(Note for premise of going concern) ....................................................................................................11(Notes for significant changes in shareholder’s equity) ......................................................................................11(Changes in accounting policies) ...................................................................................................11(Changes in presentation method) .................................................................................................11(Segment information) ............................................................................................................................................121

1. Qualitative Information on Quarterly Consolidated Operating Results(1) Analysis of Operating Results
During the second quarter of the current consolidated fiscal year, Japan’s economy struggled to grow at the beginningof the period, reflecting negative growth in exports, but the economy recorded positive growth against a backdrop of
growth in personal consumption and capital investment. On the other hand, overseas, the U.S. economy remained
strong despite its lower growth rate, the Chinese economy entered a recovery trend, and the European economy
showed deceleration in growth rate.
Given these circumstances, net sales for the Tomoe Engineering Group for the consolidated second quarter were24,155 million yen, increased by 9.9% over the same period of the previous year, mainly reflecting increased net sales
in the Chemical Products Business. From an earnings aspect, operating income was 2,062 million yen, 14.5% up
from the same period of the previous year because of higher income in the Chemical Products Business, while ordinary
income came to 2,075 million yen, 10.4% up over the same period of a year earlier. However, net income attributableto owners of the parent was 1,416 million yen, 11.3% down from the same period of a year earlier reflecting noappropriation of profit on sales of noncurrent assets that was appropriated in the previous fiscal year.
Operating results by segment were as follows.
(Machinery & Equipment Business)
In the Machinery & Equipment Business, consolidated year-to-date net sales for the second quarter were 5,798 million
yen, 3.8% up from the same period of a year earlier. Despite sluggish growth in net sales for domestic public sector
demand as a whole, net sales of machinery rose drastically, and net sales of equipment and construction works, andcomponents and repair services also rose for overseas markets, and furthermore, net sales of machinery for domestic
private sector demand remained strong.
Product classification
April, 2022
Public sector

April, 2023
Difference
April, 2022

Private sector

April, 2023
Difference
April, 2022

Overseas
markets

April, 2023
Difference
April, 2022

TOTAL

April, 2023
Difference

Machinery(Millions of Yen)

Equipment andconstruction
works

Components
and repair
services

473

550

1,932

2,956

343

422

1,791

2,556

-130

-127

-141

-399

141

59

971

1,171

219

2

975

1,197

78

-56

4

26

465

34

955

1,454

915

87

1,041

2,043

450

52

85

588

1,079

643

3,859

5,583

1,478

512

3,807

5,798

398

-131

-51

214

TOTAL

With respect to earnings, operating income was 327 million yen, 42.9% down from the same period of a year earlier,mainly reflecting sluggish net sales for domestic public sector demand.

2

(Chemical Products Business)
In the Chemical Products Business, consolidated year-to-date net sales for the second quarter were 18,357 million yen,
12.0% up from the same period of a year earlier. Net sales of materials for semiconductor manufacturing devices inadvanced materials sector rose drastically, and net sales of materials mainly for building and motor vehicles in themineral products sector, materials mainly for paint and ink applications in the chemical products sector, and materials
for resin and products in the synthetic resin sector expanded.
(Millions of Yen)
April, 2022

April, 2023

Difference

Synthetic resin sector

2,382

2,582

199

Industrial materials sector

3,122

2,983

-139

Mineral products sector

2,362

2,897

535

Chemical products sector

3,976

4,224

248

Advanced materials sector

1,931

3,016

1,085

Electronic materials sector

2,491

2,518

26

122

134

11

16,38918,357

1,967

Other products (foreign liquor)
Total

With respect to earnings during the period, operating income was 1,735 million yen, 41.3% up from the same periodof a year earlier, reflecting strong sales.

3(2) Analysis of Financial Condition[1] Assets, Liabilities, and Net Assets
Total assets as of the end of the consolidated second quarter under review were 47,005 million yen, increased by
1,263 million yen from the end of the previous consolidated fiscal year. This reflected increases in electronicallyrecorded monetary claims, and raw materials and supplies, despite decreases in cash and deposits, and merchandiseand finished goods.
Liabilities were 11,656 million yen, increased by 301 million yen from the end of the previous consolidated fiscal year,
because of increases in contract liabilities, and electronically recorded monetary debt, despite decreases in notes andaccounts payable-trade, and provision for bonuses.
Net assets stood at 35,349 million yen, increased by 961 million from the end of the previous consolidated fiscal year.
This mainly reflected an increase in retained earnings recorded under quarterly net income attributable to owners of
the parent.
As a result of the above changes, the equity ratio at the end of the consolidated second quarter under review
stood at 75.2%, the same rate at the end of the previous consolidated fiscal year.
[2] Cash Flow Status
Cash and cash equivalents (“cash”) as of the end of the consolidated second quarter under review decreased by 403
million yen from the end of the previous consolidated fiscal year to 10,329 million yen, reflecting cash flow used byinvestment activities and financing activities respectively, despite cash flow provided by operating activities. The
status of each consolidated cash flow and their factors during the second quarter are as follows:(Net Cash Provided by (Used in) Operating Activities)
Net cash provided by operating activities during the consolidated second quarter under review totaled 292 million
yen. This mainly reflected increases in notes, accounts receivable-trade and contract assets by 1,052 million yen,inventory by 563 million yen, income before income taxes by 2,087 million yen, and contract liabilities by 601 million
yen, despite payment of income taxes by 729 million yen. Net cash provided by operating activities came to 292 million
yen compared to 1,507 million yen used for the same consolidated quarter year-to-date period of the previous year.
(Net Cash Provided by (Used in) Investing Activities)
Net cash used by investing activities during the consolidated second quarter under review came to 291 million yen.
This reflected a difference of 200 million yen between deposits and disbursements to time deposits, despite purchaseof property, plant and equipment used by 71 million yen. Net cash used by investing activities decreased by 3,503
million yen compared to 3,794 million yen used for the same consolidated quarter year-to-date period of last year.
(Net Cash Provided by (Used in) Financing Activities)
Net cash used by financing activities during the consolidated second quarter under review came to 279 million yen.
This reflected the payment of cash dividends of 279 million yen. Net cash used in investing activities increased by 29
million yen compared to 249 million yen used for the same consolidated quarter year-to-date period of the previous year.
(3) Analysis of Future Forecast on Quarterly Consolidated Earnings Forecast
There are no revisions to the consolidated earnings forecast figures for the fiscal year ending October 31, 2023 thatwere announced in the “Notice on changes to earning forecast]” released on June 7, 2023.

4

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet (Second Quarter)(Thousands of Yen)
AssetsCurrent Assets

End of Previous YearEnd of Second Quarter(October. 31, 2022)(April 30, 2023)

10,732,583

10,529,501

13,297,252

13,184,181

Electronically Recorded Monetary Claims

3,466,717

4,471,466

Merchandise and Finished Goods

5,839,927

5,577,931

Work in Process

1,282,752

1,487,582

1,120,659

1,612,249

323,406

437,736-83,122-68,002

35,980,178

37,232,646

5,144,878

5,120,631

Accumulated Depreciation-2,209,570-2,267,121

Buildings and Structures, Net

2,935,308

2,853,509

Machinery, Equipment and Vehicles

4,298,347

4,259,396-3,820,079-3,803,717

478,268

455,6792,304,010

2,303,274

17,3473,863

1,139,081

1,159,154-1,049,820-1,072,291

89,26186,863

5,824,196

5,703,190

86,83593,510Investment Securities

1,306,889

1,406,363

Guarantee Deposits

563,224

558,435

1,908,244

1,935,802

Deferred Tax Assets

6,291

5,182

Others

88,304

92,347

Allowance for Doubtful Accounts-21,892-21,892

Total Investments and Other Assets

3,851,061

3,976,237

Total Noncurrent Assets

9,762,093

9,772,939

Total Assets

45,742,272

47,005,585

Cash and Deposits
Notes, Accounts Receivable-Trade and Contract
AssetsRaw Materials and Supplies
OthersAllowance for Doubtful Accounts
Total Current Assets
Noncurrent Assets
Property, Plant and Equipment
Buildings and Structures

Accumulated Depreciation
Machinery, Equipment and Vehicles, Net
Land
Construction in progress
Others
Accumulated Depreciation
Others, Net
Total Property, Plant and Equipment
Intangible Assets
Investments and Other Assets

Net Defined Benefit Assets5

(Thousands of Yen)
End of Previous YearEnd of Second Quarter(October. 31, 2022)(April 30, 2023)

Liabilities and Net Assets
Liabilities
Current Liabilities
Notes and Accounts Payable-Trade

4,582,839

4,186,526

Electronically Recorded Monetary Debt

2,238,380

2,589,200

Accounts Payable-Others

744,644781,796

Income Taxes Payable

769,585522,668

Contract Liabilities

291,848

890,463

1,507,631

1,146,775

Provision for Directors' Bonuses

103,889

52,665

Allowance for Product Warranty

200,287

145,414

Others236,306

459,232

10,675,412

10,774,743

5,460

－

Net Defined Benefit Liabilities

74,12076,676

Deferred Tax Liabilities

599,474

804,976

Total Noncurrent Liabilities

679,055

881,653

Total Liabilities

11,354,468

11,656,396

Capital Stock

1,061,210

1,061,210

Capital Surplus

1,483,410

1,483,410

Retained Earnings

30,882,276

32,018,940

Treasury Stock-364,148-364,148

Total Shareholders’ Equity

33,062,747

34,199,411

Accumulated Other Comprehensive Income
Valuation Difference on Available-for-Sale
Securities
Deferred Gains or Losses on Hedges

362,745436,765

11,637

7,074

Foreign Currency Translation Adjustment

801,149

573,729

Total Adjustment on Net Defined Benefit
Total Accumulated Other Comprehensive
IncomeTotal Net Assets

149,523

132,208

1,325,056

1,149,777

34,387,804

35,349,189

Total Liabilities and Net Assets

45,742,272

47,005,585

Provision for Bonuses

Total Current Liabilities
Noncurrent Liabilities
Provision for Directors' Retirement Benefits

Net Assets
Shareholders’ Equity6(2) Quarterly Consolidated Statement of Income & Quarterly Consolidated Statement of Comprehensive
IncomeQuarterly Consolidated Statement of Income (Second Quarter)(Thousands of Yen)
Second Quarter Ended
April 30, 2022

Second Quarter Ended
April 30, 2023

21,972,451

24,155.024

16,410,974

17,960,161

5,561,476

6,194,863

3,759,268

4,131,874

1,802,208

2,062,988

Interest Income

759

7,105

Dividends Income

17,633

20,838Rent Income

3,658

4,015

Foreign Exchange Gain

43,654－

Others21,291

24,85086,99756,809Interest Expenses

1,232

360

Commission Paid

7,487

7,487

－

35,068

1,236

1,383

9,956

44,3001,879,248

2,075,497

456,447－

Net Sales
Cost of Sales
Gross Profit
Selling, General and Administrative Expenses
Operating Income
Non-Operating Income

Total Non-Operating Income
Non-Operating Expenses

Foreign Exchange Loss
OthersTotal Non-Operating Expenses
Ordinary Income
Extraordinary Profits
Profit on Sales of Noncurrent Assets
Gain on Sale of Investment Securities－

11,907

Total Extraordinary Profits

456,447

11,907

Income before Income Taxes and Minority Interests

2,335,696

2,087,405

Income Taxes-Current

569,249

489,039

Income Taxes-Deferred

170,496

182,310

Total Income Taxes

739,746

671,350Net Income

1,595,950

1,416,054

Net Income Attributable to Owners of the Parent

1,595,950

1,416,054

7

Quarterly Consolidated Statement of Comprehensive Income (Second Quarter)(Thousands of Yen)
Second Quarter Ended

Second Quarter Ended

April 30, 2022

April 30, 2023

1,595,950

1,416,054-79,753

74,020

Deferred Gains or Losses (-) on Hedges

8,258-4,563Foreign Currency Translation Adjustment

261,621-227,420

Net Defined Benefit-22,377-17,315

Total Other Comprehensive Income

167,747-175,278

1,763,698

1,240,776

1,763,698

1,240,776

Net Income
Other Comprehensive Income
Valuation Difference on Available-for-sale Securities

Comprehensive Income(Breakdown)Comprehensive Income Attributable to Owners of the
Parent8

(3) Quarterly Consolidated Statement of Cash Flows(Thousands of Yen)

Net Cash Provided by (Used in) Operating Activities

Second Quarter Ended

Second Quarter Ended

April 30, 2022

April 30, 2023

Income before Income Taxes

2,335,696

2,087,405

Depreciation and Amortization

181,288

187,919

Increase (Decrease) in Provision for Bonuses(397,617)(359,308)

Increase (Decrease) in Provision for Directors' Bonuses(38,427)

Increase (Decrease) in Allowance for Product Warranty
Increase (Decrease) in Provision for Directors' Retirement Benefits(138,624)(51,223)－

Increase (Decrease) in Net Defined Benefit Liability

851

Decrease (Increase) in Net Defined Benefit Asset(27,537)

Increase (Decrease) in Allowance for Doubtful Accounts

287(18,393)

Interests and Dividends Income

1,232Interest Expenses(54,872)(5,460)2,555(27,558)(8,772)(27,944)360

Foreign Exchange Loss (Gain)(15,820)

Loss on Sale of Noncurrent Assets (Gain)(456,447)－－(11,907)

Loss on Sale of Investment Securities (Gain)
Decrease (Increase) in Notes, Accounts Receivable-Tradeand Contract Assets(1,666,043)(1,226,302)

Decrease (Increase) in Inventories

101,572(1,052,373)(563,362)

Decrease (Increase) in Advance Payment

27,267

Increase (Decrease) in Notes and Accounts Payable-Trade151,044

Increase (Decrease) in Accounts Payable-Others

57,17949,638

Increase (Decrease) in Contract Liabilities

664,626

601,189

Increase (Decrease) in Consumption Taxes Payable(166,407)

344,430

Others, Net(73,882)(53,045)(806,028)

Sub TotalInterests and Dividends Income Received

18,436

Interest Expenses Paid

(1,239)(719,015)

Income Taxes Returned (Paid)
Net Cash Provided by (Used in) Operating Activities

9(1,507,847)(224,121)

58,844

993,964
28,124(367)(729,560)

292,160

(Thousands of Yen)

Net Cash Provided by (Used in) Investment Activities

Second Quarter Ended

Second Quarter Ended

April 30, 2022

April 30, 2023

Disbursement to Time Deposits(8,000,000)

Withdrawal from Time Deposits

4,000,000

Purchase of Property, Plant and Equipment(119,392)

Proceeds from Sale of Property, Plant and Equipment

491,734

Purchase of Intangible Fixed Assets(13,412)Purchase of Investment Securities(7,334)－

Proceeds from Sale of Investment Securities
Payments of Loans Receivable(540)

Collection of Loans Receivable

610

Guarantee Deposits (Increase)(145,021)(1,426)

Others, Net(4,200,000)

4,000,000(71,134)－(35,704)(803)

21,213(5,886)

360
747
(5)

(3,794,782)(291,214)(66)－

Cash Dividends Paid

(249,457)

Net Cash Provided by (Used in) Financing Activities(249,524)(279,391)

139,612(124,637)

Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Period(5,412,541)(403,081)

12,607,490

10,732,583

Cash and Cash Equivalents at End of This Quarter

7,194,949

10,329,501

Net Cash Provided by (Used in) Investment Activities
Net Cash Provided by (Used in) Financing Activities
Purchase of Treasury Stock

Cash and Cash Equivalents
Effect of Exchange Rate Change on Cash and Cash
Equivalents

10(279,391)

(4) Notes on Quarterly Consolidated Financial Statements(Note for premise of going concern)
There are no pertinent matters to report.
(Notes for significant changes in shareholder’s equity)
There are no pertinent matters to report.
(Changes in accounting policies)(Application of Accounting Standard Application Guidelines for Fair Value Measurement)
We have applied Accounting Standard Application Guidelines for Fair Value Measurement (ASBJ Statement No. 31;
hereinafter referred to as Accounting Standard Application Guidelines for Fair Value Measurement) from the beginningof the consolidated first quarter under review, and in compliance with the transitional treatment prescribed in Article27-2 of Accounting Standard Application Guidelines for Fair Value Measurement, we will in the future apply the new
accounting policy prescribed by Accounting Standard Application Guidelines for Fair Value Measurement.
Furthermore, there is no effect on the quarterly consolidated financial statements.
(Changes in presentation method)(Quarterly consolidated statement of cash flow)
Since increase (decrease) in advance payment, which was included in others, net under net cash provided by (used in)operating activities in the second quarter of the previous consolidated fiscal year, increased in quantitative materiality,
we present it separately beginning from the consolidated second quarter under review. To reflect the change in thispresentation method, we have performed a reclassification of the quarterly consolidated financial statements for thesecond quarter of the previous consolidated fiscal year.
As a result, we have reclassified the (46,615,000) yen shown in others, net under net cash provided by (used in)operating activities in the quarterly consolidated statement of cash flows for the second quarter of the previous
consolidated fiscal year as 27,267,000 yen in increase (decrease) in advance payment and (73,882,000) yen inothers, net.

11

(Segment information, etc.)[Segment information]
Second Quarter Ended April 30, 2022
Information Pertaining to the Amount of Net Sales, Profit or Loss of Each Reporting Segment(Thousands of Yen)

Reported Segment
Machinery & Equipment
Business

Chemical Products
Business

5,583,096

Total

Grand Total

16,389,354

21,972,451

21,972,451

-

-

-

-

Total

5,583,096

16,389,354

21,972,451

21,972,451

Segment Profit

574,586

1,227,622

1,802,208

1,802,208

Net Sales
Net Sales to UnaffiliatedCustomers
Internal Net Sales among
Segments or AmountTransferred(Note) The total amount of segment profit is identical to the operating income reported on the Quarterly Consolidated Statements of Income.

Second Quarter Ended April 30, 2023
Information Pertaining to the Amount of Net Sales, Profit or Loss of Each Reporting Segment(Thousands of Yen)

Reported Segment
Machinery & Equipment
Business

Chemical Products
Business

5,798,007

Total

Grand Total

18,357,017

24,155,024

24,155,024

-

-

-

-

Total

5,798,007

18,357,017

24,155,024

24,155,024

Segment Profit

327,858

1,735,130

2,062,988

2,062,988

Net Sales
Net Sales to UnaffiliatedCustomers
Internal Net Sales among
Segments or AmountTransferred(Note) The total amount of segment profit is identical to the operating income reported on the Quarterly Consolidated Statements of Income.

12