Financial Results for the Third Quarter Ended July 31, 2023
[Japan GAAP] (Consolidated)
Date:
Company Name and Code:

September 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: September 14, 2023
Date for Dividend Payment:
Not applicable to this financial quarter
Preparation of Supplementary Explanatory Materials for Quarterly Operating Results: Not prepared
Briefing Session for Quarterly Operating Results: Not planned* Any fractional sums less than one million (or one thousand) yen are disregarded
1. Consolidated Financial Data for the Third Quarter Ended July 31, 2023
(1) Results of Operation (Consolidated)(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
Quarter Ended July 31, 2023
35,823
9.4
2,888
29.5
2,920
24.8
Quarter Ended July 31, 2022
32,746
－
2,230
1.9
2,340
4.7

Quarter Ended July 31, 2023
Quarter Ended July 31, 2022

Net Income Attributable to
Owners of the Parent
Millions of
Yen
Percent
1,986
3.8
1,913
14.5

(Note) Comprehensive income
Third Quarter ended July 31, 2023: 2,129 million yen (-5.3%)(2) Financial Condition (Consolidated)Year Ended October 31, 2022
Year Ending October 31, 2023
Year Ending October 31, 2023 (Prospect)First
Quarter－－Yen
199.11
191.79Yen－－

Net Assets (B)(Millions of Yen)
35,83834,387

Net Assets Ratio(B) / (A) (Percent)
75.0
75.2

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

2. Dividend Status(Record Date)

Fully Diluted Quarterly
Net Income per Share

Third Quarter ended July 31, 2022: 2,247 million yen (19.5%)

Total Assets (A)(Millions of Yen)
47,80145,742

Quarter Ended July 31, 2023
Year Ended October 31, 2022
(Reference) Net assets
Third Quarter ended July 31, 2023: 35,838 million yen

Net Income per Share

Interim
Term
25.00
40.00

Annual Dividend (Yen)Third
End ofQuarter
Fiscal Year
－
28.00
－
40.00

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

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 July 31, 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 July 31, 2023: 554,940 shares
At October 31, 2022: 554,940 shares
3) Number of average shares (accumulated quarterly total)
At July 31, 2023: 9,978,260 shares
At July 31, 2022: 9,978,272 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 3, (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..............................................................................................................................3(3) Analysis of Future Forecast on Consolidated Earnings Forecast.......................................................3
2. Quarterly Consolidated Financial Statement and Notes.................................................................................................4(1) Quarterly Consolidated Balance Sheet. ................................................................................................4(2) Quarterly Consolidated Statements of Income & Quarterly Consolidated Statements of Comprehensive
Income......................................................................................................................................6
Quarterly Consolidated Statements of Income.....................................................................................................6
Quarterly Consolidated Statements of Comprehensive Income.........................................................................7(3) Notes on Quarterly Consolidated Financial Statements………………………………………………………8(Note for premise of going concern) .................................................................................................8(Notes for significant changes in shareholder’s equity) .......................................................................................8(Changes in accounting policies) .................................................................................................8(Segment information).........................................................................................................................91

1. Qualitative Information on Quarterly Consolidated Operating Results(1) Analysis of Operating Results
During the third quarter of the current consolidated fiscal year, Japan’s economy showed sluggish growth at the
beginning of the period, despite negative growth in personal consumption, the economy recovered afterward andrecorded positive growth against a backdrop of growth in exports. On the other hand, overseas, the U.S. economy
remained strong, but the Chinese economic recovery decelerated, and the European economy continued to be on adeclining trend.
Given these circumstances, net sales of the Tomoe Engineering Group for the consolidated third quarter were
35,823 million yen, 9.4% up from the same period of the previous year, reflecting increases in net sales for both
the Machinery & Equipment Business and the Chemical Product Business. With respect to earnings during theperiod, operating income was 2,888 million yen, 29.5% up from the same period of the previous year, because ofincreased profits in the Chemical Products Business, while ordinary income came to 2,920 million yen, 24.8% up
from the same period of the previous year. Net income attributable to owners of the parent was 1,986 million
yen, 3.8% up from the same period of the previous year.
Operating results by segment were as follows.
(Machinery & Equipment Business)
In the Machinery & Equipment Business, consolidated net sales for the third quarter were 7,965 million yen, 5.6% up
from the same period of a year earlier. Despite sluggish growth in net sales for domestic public sector demand as awhole, net sales of machinery, equipment and construction works, and components and repair services all rose foroverseas markets, and furthermore, net sales of machinery for domestic private sector demand remained strong.
(Millions of Yen)
Equipment andComponents
TOTAL
Product classification
Machinery
construction
and repair
works
services
July, 2022
562
755
2,134
3,452
Public sector

Private sector

Overseas
markets
TOTAL

July, 2023

369

547

2,000

2,917

Difference
July, 2022

-193
183

-207
88

-133
1,449

-534
1,720

July, 2023

282

7

1,452

1,742

July, 2022

99
820

-80
0

3
1,550

22
2,371

July, 2023

1,365

160

1,779

3,305

July, 2022

545
1,566

160
843

228
5,134

934
7,544

July, 2023

2,017

715

5,233

7,965

451

-128

98

421

Difference

Difference

DifferenceWith respect to earnings, operating income was 235 million yen, 42.5% down from the same period of the previous
year, reflecting an increase in selling expenses despite increased net sales.

2(Chemical Products Business)
In the Chemical Products Business, consolidated year-to-date net sales for the third quarter were 27,857 million yen,
10.5% 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, and materials mainly for paint and ink applications in the chemical products sector expanded.
(Millions of Yen)
July, 2022

July, 2023

Difference

Synthetic resin sector

3,887

3,957

70

Industrial materials sector

4,484

4,304

-180

Mineral products sector

3,599

4,290

690

Chemical products sector

6,135

6,498

363

Advanced materials sector

2,969

4,766

1,796

Electronic materials sector

3,931

3,845

-85

194

195

0

25,202

27,857

2,655

Other products (foreign liquor)
Total

With respect to earnings during the period, operating income was 2,653 million yen, 45.6% up from the same periodof the previous year, reflecting growth in gross profit which surpassed selling expenses.
(2) Analysis of Financial Condition
Total assets as of the end of the consolidated third quarter under review were 47,801 million yen, increased by 2,059
million yen from the end of the previous consolidated fiscal year. This reflected increases in cash and deposits, andwork in process, although notes, accounts receivable-trade and contract assets, and merchandise and finished goods
decreased.
Liabilities were 11,963 million yen, increased by 608 million yen from the end of the previous consolidated fiscal year,
mainly because of an increase in contract liabilities, despite decreases in notes and accounts payable-trade, andincome taxes payable.
Net assets stood at 35,838 million yen, increased by 1,450 million from the end of the previous consolidated fiscal
year. This mainly reflected an increase in retained earnings recorded under quarterly net income attributable toowners of the parent.
As a result of the above changes, the equity ratio at the end of the consolidated third quarter under review stoodat 75.0%, decreased by 0.2 point compared with the end of the previous consolidated fiscal year.
(3) Analysis of Future Forecast on 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.

3

2. Quarterly Consolidated Financial Statement and Notes(1) Quarterly Consolidated Balance Sheets (Third Quarter)(Thousands of Yen)
End of Previous YearEnd of Third Quarter(October. 31, 2022)(July 31, 2023)

AssetsCurrent Assets

10,732,583

11,649,544

13,297,252

12,776,106

Electronically Recorded Monetary Claims

3,466,717

4,097,486

Merchandise and Finished Goods

5,839,927

5,171,173

Work in Process

1,282,752

2,429,758

1,120,659

1,429,071

323,406

429,871-83,122-73,608

35,980,178

37,909,404

5,144,878

5,150,094

Accumulated Depreciation-2,209,570-2,317,176

Buildings and Structures, Net

2,935,308

2,832,917

Machinery, Equipment and Vehicles

4,298,347

4,342,384-3,820,079-3,892,148

478,268

450,235

2,304,010

2,304,022

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, NetLand

17,347－

1,139,081

1,175,698-1,049,820-1,092,661

89,261

83,037

5,824,196

5,670,213

86,835

112,870

Investment Securities

1,306,889

1,532,913

Guarantee Deposits

563,224

554,092

1,908,244

1,950,928

Deferred Tax Assets

6,291

137

Others

88,30493,290Allowance for Doubtful Accounts-21,892-21,892

Total Investments and Other Assets

3,851,061

4,109,469

Total Noncurrent Assets

9,762,093

9,892,554

Total Assets

45,742,272

47,801,958

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

Net Defined Benefit Assets4

(Thousands of Yen)
End of Previous YearEnd of Third Quarter(October. 31, 2022)(July 31, 2023)

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

4,582,839

4,132,574

Electronically Recorded Monetary Debt

2,238,380

2,348,342

Short-term Loans Payable－

113,680

Accounts Payable-Others

744,644726,404

Income Taxes Payable

769,585

169,970

Contract Liabilities

291,848

1,688,581

1,507,631

1,106,917

Provision for Directors' Bonuses

103,889

84,452

Allowance for Product Warranty

200,287

124,955

Others236,306

495,883

10,675,412

10,991,761

5,460

－

Net Defined Benefit Liabilities

74,12084,308Deferred Tax Liabilities

599,474

887,299

Total Noncurrent Liabilities

679,055

971,608

Total Liabilities

11,354,468

11,963,370

Capital Stock

1,061,210

1,061,210

Capital Surplus

1,483,410

1,483,410

Retained Earnings

30,882,276

32,190,549

Treasury Stock-364,148-364,148

Total Shareholders’ Equity

33,062,747

34,371,020

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

362,745534,613

11,6374,422

Foreign Currency Translation Adjustment

801,149

804,981

Total Adjustment on Net Defined Benefit

149,523

123,550

Total Accumulated Other Comprehensive Income

1,325,056

1,467,567

Total Net Assets

34,387,804

35,838,588

Total Liabilities and Net Assets

45,742,272

47,801,958

Provision for Bonuses

Total Current Liabilities
Noncurrent Liabilities
Provision for Directors' Retirement Benefits

Net Assets
Shareholders’ Equity5(2) Quarterly Consolidated Statements of Income & Quarterly Consolidated Statements of Comprehensive
IncomeQuarterly Consolidated Statements of Income (Third Quarter)(Thousands of Yen)
Third Quarter Ended

Third Quarter Ended

July 31, 2022

July 31, 2023

32,746,291

35,823,059

24,804,988

26,700,082

7,941,303

9,122,977

5,710,383

6,234,787

2,230,919

2,888,190

Interest Income

1,546

13,299Dividends Income

41,62845,923

Rent Income

5,650

6,022

Foreign Exchange Gain

43,963－

Others30,046

31,384

122,834

96,630Interest Expenses

2,914

1,300

Commission Paid

8,243

8,243

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

Total Non-Operating Income
Non-Operating Expenses－

52,776

2,058

2,140

Total Non-Operating Expenses

13,21664,461

Ordinary Income

2,340,537

2,920,359

460,722－

Profit on Sales of Investment Securities

1,254

54,394

Total Extraordinary Profits

461,976

54,3942,802,514

2,974,753

Income Taxes-Current

671,634

755,267

Income Taxes-Deferred

217,135

232,692

Total Income Taxes

888,769

987,959

Net Income
Net Income
Attributable to Owners of the Parent

1,913,744

1,986,794

1,913,744

1,986,794

Foreign Exchange Loss
OthersExtraordinary Profits
Profit on Sales of Noncurrent Assets

Income before Income Taxes

6

Quarterly Consolidated Statements of Comprehensive Income (Third Quarter)(Thousands of Yen)
Third Quarter Ended

Third Quarter Ended

July 31, 2022

July 31, 2023

1,913,744

1,986,794

Valuation Difference on Available-for-sale Securities-105,162

171,867

Deferred Gains or Losses (-) on Hedges-18,076-7,215

Foreign Currency Translation Adjustment

490,575

3,831

Adjustment on Net Defined Benefit-33,566-25,972

Total Other Comprehensive Income

333,770

142,5112,247,514

2,129,305

2,247,514

2,129,305

Net Income
Other Comprehensive Income

Comprehensive Income(Breakdown)Comprehensive Income Attributableto Owners of the Parent

7

(3) 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
beginning of the consolidated first quarter under review, and in compliance with the transitional treatment prescribedin Article 27-2 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.

8

(Segment Information, etc.)[Segment Information]
I
Third Quarter Ended July 31, 2022
Information Pertaining to the Amount of Net Sales or Net Loss of Each Reporting Segment(Thousands of Yen)

Reported Segment

Net Sales
Net Sales to UnaffiliatedCustomers
Internal Net Sales among
Segments or AmountTransferred
Total
Segment Profit

Machinery & Equipment
Business

Chemical Products
Business

7,544,189

Total

Grand Total

25,202,102

32,746,291

32,746,291

－

－

－

－

7,544,189

25,202,102

32,746,291

32,746,291

409,011

1,821,907

2,230,919

2,230,919(Note) The total amount of segment profit is identical to the operating income reported on the Quarterly Consolidated Statements of Income.

II Third Quarter Ended July 31, 2023
Information Pertaining to the Amount of Net Sales or Net Loss of Each Reporting Segment(Thousands of Yen)

Reported Segment

Net Sales
Net Sales to UnaffiliatedCustomers
Internal Net Sales among
Segments or AmountTransferred
Total
Segment Profit

Machinery & Equipment
Business

Chemical Products
Business

7,965,326

Total

Grand Total

27,857,733

35,823,059

35,823,059

－

－

－

－

7,965,326

27,857,733

35,823,059

35,823,059

235,0142,653,175

2,888,190

2,888,190(Note) The total amount of segment profit is identical to the operating income reported on the Quarterly Consolidated Statements of Income.

9