Financial Results for the Fiscal Year Ended October 31, 2019
[Japan GAAP] (Consolidated)
Date:

December 6, 2019

Company Name and Code: 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:

Hitoshi Yamamoto

Investor Relations Contacts: Toshiaki Yakura, Director, General Manager of Accounting Division, Tel: (03) 3442-5127
Date of Annual Shareholders Meeting: January 30, 2020
Date of Dividend Payment:

January 31, 2020

Date of Financial Statement: January 30, 2020
Preparation of Supplementary Explanatory Materials for Annual Operating Results: Yes
Briefing Session for Annual Operating Results: Yes (for analysts and institutional investors)* Any fractional sums less than one million (or one thousand) yen are disregarded
1. Consolidated Financial Results for the Year Ended October 31, 2019(1) Results of Operation (Consolidated)(Percent: change from the previous year)
Operating Income
Ordinary Income

Net Sales(Millions of Yen)

(Percent)(Millions of Yen)

Year Ended
October 31, 2019
41,355-2.4
2,376
Year Ended
October 31, 2018
42,3583.1
2,377(Note) Comprehensive income
Fiscal year ended October 31, 2019: 1,464 million yen (11.2%)
Fiscal year ended October 31, 2018: 1,316 million yen (-42.3%)
Net Income Attributableto Owners of the Parent(Millions of Yen)

(Percent)(Percent)(Millions of Yen)

(Percent)

-0.1

2,384

2.1

8.2

2,335

5.2

Net
Income per
Share

Fully Diluted Net
Income per
Share

Return on
EquityReturn on
AssetsReturn on
Sales

(Yen)

(Yen)

(Percent)(Percent)(Percent)

5.5

6.2

5.7

5.5

6.3

5.6

Year Ended
October 31, 2019
1,569
3.7
157.25
Year Ended
October 31, 2018
1,513
0.7
151.64(Reference) Equity in earnings (loss) of unconsolidated subsidiaries and affiliates
Fiscal year ended October 31, 2019: None
Fiscal year ended October 31, 2018: None
(2) Financial Condition (Consolidated)
Total Assets (A)Net Assets (B)Net Assets Ratio (B / A)

Net Assets per Share(Millions of Yen)

(Millions of Yen)

(Percent)

(Yen)

73.9

2,892.41

74.7

2,793.69

Year Ended
October 31, 2019
39,07028,861
Year Ended
October 31, 201837,331
27,876(Reference) Net assets
Fiscal year ended October 31, 2019: 28,861 million yen
Fiscal year ended October 31, 2018: 27,876 million yen

(3) Cash Flows (Consolidated)
Net Cash Provided(Used) by Operating
Activities
Year Ended
October 31, 2019
3,868
Year Ended
October 31, 2018
2,191

Net Cash Provided(Used) by Investing
Activities

Net Cash Provided(Used) by Financing
Activities(Millions of Yen)
Consolidated Cashand Cash Equivalent
as of Year-end

(544)

(478)

12,147

(281)

(449)

9,354

2. Dividend Status
Dividend per Share (Yen)
SecondEnd ofThird Quarter
Quarter
Fiscal Year
22.50
24.50
23.50
23.50
23.50
23.50

First Quarter
Year Ending October 31, 2018Year Ending October 31, 2019Year Ending October 31, 2020 (Prospect)

-

Total
47.00
47.00
47.00

Total Dividend

Dividend Payout Ratio(Consolidated)

Dividend on Equity Ratio(Consolidated)(Millions of Yen)

(Percent)(Percent)

468
468

31.0
29.9
31.3

1.7
1.7

Year Ending October 31, 2018Year Ending October 31, 2019Year Ending October 31, 2019 (Prospect)

3. Forecast for the Year Ending October 31, 2020 (Consolidated)(Percent: Change from the previous year for the full business year and 6-month period)
Sales
Full BusinessYear

Operating Income(Millions of Yen)

(Percent)(Millions of Yen)

(Percent)(Millions of Yen)

(Percent)

44,700

8.1

2,250

-5.3

2,250

-5.6

Net Income Attributable to
Owners of the Parent
Full Business Year

Ordinary Income

Net Income per Share(Millions of Yen)

(Percent)

(Yen)

1,500

-4.4

150.33

Notes(1) Significant changes in subsidiaries during this period (changes in specific subsidiaries involving changes in thescope of consolidation): Yes
Addition: One (name of subsidiary) TOMOE ENGINEERING（TAICANG）CO.,LTD.
Deletion: None
(Note) For details, refer to (5) [Notes for Consolidated Financial Statements (Significant changes to subsidiaries
during the period)] of 3. [Consolidated Financial Statements and Main Notes] on page 17.
(2) Changes in accounting principles, changes in accounting estimates, and retrospective restatements
1) Change due to revision of accounting standard: None
2) Other changes than the above 1): None
3) Change in accounting estimates: None
4) Retrospective restatements: None
(3) Number of outstanding shares (Common stock)1) Number of outstanding shares at year-end (including treasury stocks)
At October 31, 2019: 10,533,200 shares

At October 31, 2018: 10,533,200 shares

2) Number of treasury stocks at year-end
At October 31, 2019: 554,861 shares

At October 31, 2018: 554,861 shares

3) Number of average shares
At October 31, 2019: 9,978,339 shares

At October 31, 2018: 9,978,368 shares*This financial report is exempt from the review by certified public accountant or audit firm.
*Explanations for appropriate use of the earnings forecast and other special instructions(Notes on the forward-looking statements, etc.)
The forward-looking statements such as a forecast of our financial results described herein are based on the information
currently available to us and the assumptions that we believe are reasonable. Actual results could differ materially due tovarious factors.
For the operating results forecast, refer to (4) [Outlook for the Next Fiscal Year] of 1. [Overview of Operating Results, etc.]
on page 4.

Table of Contents of Accompanying Documents
1. Overview of Operating Result, etc.……………………………………………………………………………………..2(1) Overview Concerning Current Operating Results………………………………………………………………....2(2) Overview Concerning Current Financial Condition………………………………………………..…………………2(3) Overview Concerning Current Cash Flow………………………………………………………..……………………3(4) Outlook for the Next Fiscal Year…………………………………………………………………..……………………4(5) Basic Policy for Profit Sharing and Dividends for Fiscal 2019 and 2020………………………………….......5
2. Basic Approach to the Selection of Accounting Standards…………………………..………………………………5
3. Consolidated Financial Statements and Main Notes………………………………………………………………....6(1) Balance Sheets…………………………………………………………………………………………………...6(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income…………….8
Consolidated Statements of Income………………………………………………………………………………....8
Consolidated Statements of Comprehensive Income……………………………………………………………....9(3) Consolidated Statements of Changes in Shareholders' Equity……………………………………………………...10(4) Consolidated Statements of Cash Flows………………………………………………………………………...12(5) Notes for Consolidated Financial Statements…………………………………………………………………..14(Notes for premise of going concern)…………………………………………………………………………... 14(Change in presentation method)……………………………………………………………………………………... 14(Segment information)……………………………………………………………………………………………... 14(Significant changes to subsidiaries during the period)……………………………………………………... 17(Per Share information)………………………………………………………….…………………………………17(Significant subsequent events)………………………………………………………………………………….17
4 Other Notes…………………………………………………………….………………………………………………....18(1) Changes of Officers (effective January 30, 2020)………………………………………………………………...18

1

1. Overview of Operating Results, etc.
(1) Overview Concerning Current Operating Results
During the current consolidated fiscal year, Japan’s economy was strongly supported by personal consumption,
capital investment, and public works investments and maintained its gradual recovery trend, despite weakness inexports that resulted from factors such as the overseas economic slowdown. Overseas, however, despite thesteady growth of the U.S. economy, Europe’s economy continued to be sluggish and the growth rate of China’s
economy remained slack. Furthermore, the semiconductor market continued to be aggravated by heightened
trade friction between the U.S. and China and sluggish smartphone sales.
Given these circumstances, full-year net sales for the Tomoe Engineering Group decreased 2.4% from theprevious consolidated fiscal year to 41,355 million yen, reflecting decrease of net sales in the Chemical ProductBusiness despite higher net sales in the Machinery & Equipment Business. With respect to earnings during theperiod, operating income was 2,376 million yen, 0.1% down from the previous consolidated fiscal year despite higher
earnings from growth in the Machinery & Equipment Business, as efforts to boost income were hampered by lower
sales in the Chemical Products Business. On the other hand, ordinary income came to 2,384 million yen, 2.1% up
from the previous consolidated fiscal year because of lower non-operating expenses, and net income attributable toowners of the parent was 1,569 million yen, 3.7% up from the previous consolidated fiscal year.
Operating results by segment were as follows.
(Machinery & Equipment Business)
In the Machinery & Equipment Business, net sales of components and repair services for overseas demand andfor domestic private demand increased, but on the other hand net sales of machinery and works in all fields, andcomponents and repair services for domestic public sector demand decreased. As a result, net sales for thecurrent consolidated fiscal year were 11,250 million yen, 0.7% up compared with the previous fiscal year.
With respect to earnings, operating income was 971 million yen, 63.7% up from the previous fiscal year, mainly
because of increased profits in the field of components and repair services for overseas which had high margins.
(Chemical Products Business)
In the Chemical Products Business, net sales of raw materials in domestic and overseas synthetic resin sector,
transport materials for semiconductor manufacturing applications in the electronics materials sector, and ceramics
products for semiconductor fabrication equipment in the advanced materials sector decreased, but on the other
hand net sales of materials for housing and construction applications in the domestic industrial materials sector
increased. As a result, consolidated net sales for the fiscal year were 30,105 million yen, 3.5% down from theprevious consolidated fiscal year.
With respect to earnings, operating income was 1,404 million yen, 21.3% down from the previous fiscal year
because of decreased income and declined gross-profit margin.
(2) Overview Concerning Current Financial Condition
Current assets at the end of the consolidated fiscal year were 30,260 million yen, up 1,436 million from the balanceat the end of the previous consolidated fiscal year, reflecting a decrease in notes and accounts receivable-trade, andmerchandise and finished goods, and an increase in cash and deposits, and raw materials and supplies.
Noncurrent assets were 8,810 million yen, up 302 million yen from the balance at the end of the previous
consolidated fiscal year, reflecting an increase in construction in progress and in machinery, equipment and vehicles.
Liabilities were 10,209 million yen, increased by 753 million yen from the end of the previous consolidated fiscal year,
mainly because of a decrease in income taxes payable, and an increase in advances received, and accounts
payable-others.

2Net assets were 28,861 million yen, up 985 million yen from the end of the previous consolidated fiscal year.
This mainly reflected an increase of net income attributable to owners of the parent reported at the current
consolidated net income.
As a result of the above changes, the equity ratio at the end of the consolidated fiscal year decreased by 0.8
point from 74.7% to 73.9% at the end of the previous consolidated fiscal year.
(3) Overview Concerning Current Cash Flow
Balance of cash and cash equivalent (hereinafter “net cash”) as of the end of the current consolidated fiscal year
increased by 2,793 million yen to 12,147 million yen from the previous consolidated fiscal year reflecting net cashused in investing and financing activities, and net cash provided by operating activities. Status of each cash flow
and their factors during the current consolidated fiscal year are as follows:(Net Cash Provided by (Used in) Operating Activities)
Net cash provided by operating activities was 3,868 million yen. This reflected an increase in income taxes payment
used in 943 million yen and inventory by 156 million yen, and a decrease in income before income taxes by 2,378
million yen, reservation for depreciation and amortization by 364 million yen, and notes and accounts receivabletrade by 1,656 million yen. Net cash provided was increased by 1,677 million yen from 2,191 million yen in theprevious consolidated fiscal year.
(Net Cash Provided by (Used in) Investing Activities)
Net cash used in investing activities was 544 million yen. This reflected purchase of property, plant and equipmentof 468 million yen, and purchase of intangible fixed assets of 60 million yen. Net cash used was increased by 263
million yen from 281 million yen in the previous consolidated fiscal year.
(Net Cash Provided by (Used in) Financing Activities)

Net cash used in financing activities was 478 million yen mainly for the payment of cash dividends in 478 million yen.
Net cash used was increased by 29 million yen from 449 million yen in the previous consolidated fiscal year.
Trends in cash flow indicesYear Ended
October 31,
2015

Year Ended
October 31,
2016

Year Ended
October 31,
2017

Year Ended
October 31,
2018

Year Ended
October 31,
2019

73.4

72.4

73.8

74.7

73.9

44.3

44.3

59.1

58.3

60.3

Debt-repayment to Cash
Flow Ratio (Years)

-

0.0

0.2

0.0

0.0

Interest Coverage Ratio(Percent)

-

735.6

28.3

68.9

114.8

Equity Ratio (Percent)
Equity Ratio Based on
Market Value (Percent)

Equity ratio: Net assets/ Total assets
Equity ratio based on market value: Market capitalization of shares / Total assets
Debt-repayment to cash flow ratio: Interest-bearing debt / Cash flow
Interest coverage ratio: Cash flow /Interest payment

3(Notes)1.

All indices are calculated on the basis of consolidated financial figures.

2.

Market capitalization is calculated based on the number of outstanding shares excluding treasury stock.

3.

Cash flow refers to net cash provided by (used in) operating activities.

4.

Interest-bearing debt refers to all debt reported on the consolidated balance sheet for which interest is
being paid.

5.

Beginning from the start of the current consolidated fiscal year, the Company has applied the Partial
Amendments to Accounting Standard for Tax Effect Accounting (Accounting Standards Board of Japan
Statement No. 28). Such Accounting Standard has been applied retroactively to the Financial Results
for the Fiscal Year ended October 31, 2018.

(4) Outlook for the Next Fiscal Year (November 1, 2019 - October 31, 2020)
In the consolidated fiscal year ending October 31, 2020, Japan’s economy is expected to stay on its gradual
recovery track, as capital investment and public works investments appear to remain robust and exports also seemto be restored. Internationally, while the US economy are forecast to continue robust, the European and Chinese
economies continue to be in the deceleration tendency. Circumstances such as intensified US-China trade friction
causing concerns about a downturn in the world economy make close observation necessary.
Given these circumstances, in the Machinery & Equipment Business consolidated net sales are expected to reach
13,800 million yen, 22.7% up from the previous consolidated fiscal year, with net sales projected to be higher forboth machinery in all sectors, particularly overseas, and for equipment and construction for domestic public sector
demand. One the other hand, operating income is projected to come to 760 million yen, 21.8% down comparedwith the previous consolidated fiscal year, with profit margins expected to narrow because of low margins on themachinery that garnered higher sales and a decline in sales of overseas components and repair services, which
had increased in the previous consolidated fiscal year. In the Chemical Products Business, consolidated net sales
are expected to amount to 30,900 million yen, 2.6% up compared with the previous consolidated fiscal year, andoperating income is expected to be 1,490 million yen, 6.1% up from the previous consolidated fiscal year, reflecting
the growth in sales of UV curing resin in the fine chemicals sector and sales of materials for semiconductorfabrication equipment in the advanced materials sector and electronics materials sector.
As a result of these efforts, for the entire Tomoe Engineering Group in the consolidated fiscal year ending October 31,
2020, we project net sales to grow by 8.1% to 44,700 million yen, operating income to decrease by 5.3% to 2,250 million
yen, ordinary income to decrease by 5.6% to 2,250 million yen, and net income attributable to the shareholders of theparent company to decrease by 4.4% to 1,500 million yen.
The operating results forecasts for the next period described above are based on information available to theCompany at the time the forecasts were prepared and assumptions judged to be reasonable. Actual operating
results might differ from these forecasts depending upon changes in domestic and international financial andeconomic conditions, the supply and demand situation, various risk factors and other uncertainties.

4(5) Basic Policy for Profit Sharing and Dividends for Fiscal 2019 and 2020
As its basic policy, the Tomoe Engineering Group will “implement appropriate, stable dividends by seeking to increaseinternal reserves to reinforce our financial position and corporate strength, and by considering consolidated operating
results, the group’s medium-term business strategy and other factors in a comprehensive manner.”
Based on the above policy, we plan to pay a dividend of 23.5 yen per share at the end of the consolidated fiscal year
ending on October 31, 2019, down 1.0 yen per share from the previous consolidated fiscal year, considering ofoperating results for this fiscal year and the outlook in future.
For the dividend for the next consolidated fiscal year, we plan to pay 47 yen per share (including an interim dividend
per share of 23.5 yen), based on consideration of the outlook for consolidated operating results.

2. Basic Approach to the Selection of Accounting Standards
At the present time the Tomoe Engineering Group has adopted Japan GAAP, based on factors such as comparability
between firms, and the Group’s policy concerning the application of IFRS will be to respond while referring to outside
trends and other considerations.

53. Consolidated Financial Statements and Main Notes(1) Balance Sheets(Thousands of Yen)
Year Ended October 31, 2018Year Ended October 31, 2019

Cash and Deposits

9,354,256

12,147,981

Notes and Accounts Receivable-Trade

11,834,551

10,432,830

Electronically Recorded Monetary Claims

2,183,842

1,904,539

Merchandise and Finished Goods

3,685,115

3,242,217

Work in Process

981,660

1,200,360

Raw Materials and Supplies

667,846

1,014,166

Others183,711

381,860

Allowance for Doubtful Accounts
Total Current Assets-67,114-63,652

28,823,870

30,260,304

4,459,308

4,608,252

Accumulated Depreciation-1,831,356-1,954,347

Buildings and Structures, Net

2,627,951

2,653,904

Machinery, Equipment and Vehicles

3,697,837

3,771,107-3,304,595-3,284,685

393,242

486,422

1,931,089

1,930,720

10,606123,271

980,958

1,036,746-901,758-955,308

79,19981,437

5,042,089

5,275,756

109,792

129,094

Investment Securities

1,374,561

1,393,589

Guarantee Deposits

340,386

349,795

1,554,938

1,588,079

Deferred Tax Assets
Others16,436

16,44692,65480,562

Allowance for Doubtful Accounts-22,871-22,681

Total Investments and Other Assets

3,356,107

3,405,791

Total Noncurrent Assets

8,507,988

8,810,642

Total Assets

37,331,859

39,070,946

AssetsCurrent 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 Assets

6

(Thousands of Yen)
Year Ended October 31, 2018Year Ended October 31, 2019

Notes and Accounts Payable-Trade

4,193,451

4,165,190

Electronically Recorded Monetary Debt

1,857,112

1,822,509

Accounts Payable-Others

600,382

821,503

Income Taxes Payable

539,919

430,816

Advances Received

70,030577,512

Provision for Bonuses

1,081,025

1,160,657

Provision for Directors' Bonuses

70,00072,627

Allowance for Product Warranty

160,295

313,350

Others217,988

199,898

8,790,206

9,564,068

Liabilities and Net Assets
Liabilities
Current Liabilities

Total Current Liabilities
Noncurrent Liabilities
Provision for Directors' Retirement Benefits

5,460

5,460

Net Defined Benefit Liabilities

57,90563,208Deferred Tax Liabilities

601,913576,715

Total Noncurrent Liabilities

665,279

645,384

Total Liabilities

9,455,485

10,209,452

Capital Stock

1,061,210

1,061,210

Capital Surplus

1,483,410

1,483,410

Retained Earnings

24,953,779

26,043,930

Treasury Stock-363,977-363,977

Total Shareholders’ Equity

27,134,422

28,224,573

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

433,098439,359

130

1,954

Foreign Currency Translation Adjustment

186,221

83,282

Total Adjustment on Net Defined Benefit

122,501

112,324

Total Accumulated Other Comprehensive Income

741,950

636,920

Total Net Assets

27,876,373

28,861,494

Total Liabilities and Net Assets

37,331,859

39,070,946

Net Assets
Shareholders’ Equity7(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive
IncomeConsolidated Statements of Income(Thousands of Yen)
Year Ended October 31, 2018Year Ended October 31, 2019

Net Sales

42,358,294

41,355,790

Cost of Sales

33,122,636

32,006,364

Gross Profit

9,235,657

9,349,425

Selling, General and Administrative Expenses

6,858,047

6,973,166

Operating Income

2,377,610

2,376,258

Interest income

3,217

1,667

Dividends Income

31,48732,075

Rent Income

7,306

7,171

Insurance Return

2,214
36,49813,382
27,63580,724

81,932

Interest Expenses

31,80433,688Commission Paid

9,000

8,999

Sales Discount

5,806

7,432

Provision of Allowance for Bad Debts

38,983-Foreign Exchange Losses

34,05018,090

Others

3,198

5,486

Total Non-Operating Expenses

122,843

73,697

Ordinary Income

2,335,490

2,384,493

24,037

-

-

5,621

24,037

5,621

2,311,453

2,378,871

Income Taxes-Current

905,746

839,902

Income Taxes-Deferred-107,453-30,141

Total Income Taxes

798,292

809,760

Net Income
Net Income Attributable to
Owners of the Parent

1,513,160

1,569,110

1,513,160

1,569,110

Non-Operating Income

OthersTotal Non-Operating Income
Non-Operating Expenses

Extraordinary Losses
Loss on Impairment
Loss on Sales of Investment Securities
Total Extraordinary Losses
Income before Income Taxes

8

Consolidated Statements of Comprehensive Income(Thousands of Yen)
Year Ended October 31,

Year Ended October 31,

2018

2019
1,513,160

1,569,110-117,940

6,261

Deferred Gains or Losses on Hedges-2,3771,824

Foreign Currency Translation Adjustment-28,343-102,938

Adjustment on Net Defined Benefit-47,715-10,177

Total Other Comprehensive Income-196,377-105,030

1,316,783

1,464,080

1,316,783

1,464,080

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

Comprehensive Income(Breakdown)Comprehensive Income Attributable to Owners of the
Parent9

(3) Consolidated Statements of Changes in Shareholders' Equity
Previous Consolidated Fiscal Year (Year Ended October 31, 2018)(Thousands of Yen)
Shareholders' Equity

Surplus during Previous
Fiscal Year
Changes during This
Fiscal Year
Cash Dividend Paid
Net Income Attributable to
Owners of the Parent
Acquisition of Treasury
Stock
Total (Net) Amount
Changed (Except
Shareholders' Equity)
Total Amount Changed
Surplus during This Fiscal
Year

CommonStockCapitalSurplusRetained
Earnings

1,061,210

1,483,410

23,889,646

Issued Shares
Reacquired-363,876

Total Net
Assets
26,070,389-449,027-449,027

1,513,160

1,513,160
-100

-100

-

-

1,064,133-100

1,064,033

1,061,210

1,483,410

24,953,779-363,977

27,134,422

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

Surplus during Previous
Fiscal Year
Changes during This
Fiscal Year
Cash Dividend Paid
Net Income Attributableto Owners of the Parent
Acquisition of Treasury
Stock
Total (Net) Amount
Changed (Except
Shareholders' Equity)
Total Amount Changed
Surplus during This
Fiscal Year551,039

Deferred
Gains or
Losses on
Hedges2,508Foreign
Currency
Translation
Adjustment

214,564

Total Net
DefinedBenefit

170,216

Total Other
Comprehensiv
e Income

938,328

Total Net
Assets27,008,718-449,027
1,513,160-100-117,940-2,377-28,343-47,715-196,377-196,377-117,940-2,377-28,343-47,715-196,377

867,655

433,098130

186,221122,501

741,950

27,876,373

10

Current Consolidated Fiscal Year (Year Ended October 31, 2019)(Thousands of Yen)
Shareholders' Equity

Surplus during Previous
Fiscal Year
Changes during This
Fiscal Year
Cash Dividend Paid
Net Income Attributable to
Owners of the Parent
Acquisition of Treasury
Stock
Total (Net) Amount
Changed (Except
Shareholders' Equity)
Total Amount Changed
Surplus during This Fiscal
Year

CommonStockCapitalSurplusRetained
Earnings

1,061,210

1,483,410

24,953,779

Issued Shares
Reacquired-363,977

Total Net
Assets27,134,422-478,960-478,960

1,569,110

1,569,110---

1,090,150-

1,090,150

1,061,210

1,483,410

26,043,930-363,977

28,224,573

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

Surplus during Previous
Fiscal Year
Changes during This
Fiscal Year
Cash Dividend Paid
Net Income Attributableto Owners of the Parent
Acquisition of Treasury
Stock
Total (Net) Amount
Changed (Except
Shareholders' Equity)
Total Amount Changed
Surplus during This
Fiscal Year

433,098

Deferred
Gains or
Losses on
Hedges130

Foreign
Currency
Translation
Adjustment

186,221

Total Net
DefinedBenefit122,501

Total Other
Comprehensiv
e Income

741,950

Total Net
Assets27,876,373-478,960
1,569,110
-

6,261

1,824

-102,938-10,177-105,030-105,030

6,261

1,824

-102,938-10,177-105,030

985,120439,359

1,954

83,282

112,324

636,920

28,861,494

11

(4) Consolidated Statements of Cash Flows(Thousands of Yen)
Year EndedYear Ended

October 31, 2018

October 31, 2019

Net Cash Provided by (Used in) Operating Activities
Income before Income Taxes and Minority Interests

2,311,453
400,068

2,378,871
364,194

Increase (Decrease) in Provision for Bonuses

98,17680,226

Increase (Decrease) in Provision for Directors' Bonuses

5,321

2,627

Increase (Decrease) in Allowance for Product Warranty
Increase (Decrease) in Net Defined Benefit Liability(24,963)

153,055

407

5,302

Decrease (Increase ) in Net Defined Benefit Asset(28,492)(17,531)

Increase (Decrease) in Allowance for Doubtful Accounts

57,895(315)

Interests and Dividends Income(34,705)(33,743)

Interest Expenses

31,80433,688Foreign Exchange Losses (Gains)(7,050)11,664-

5,621

24,037-

228,685

1,656,813

Decrease (Increase) in Inventories(539,626)(156,401)

Increase (Decrease) in Notes and Accounts Payable-Trade

292,057(48,440)

Increase (Decrease) in Accounts Payable-Others

65,975102,583

Increase (Decrease) in Advances Received

12,458509,626

Others, Net

87,378(235,545)

2,980,881

4,812,299

Interests and Dividends Income Received

34,69833,660Interest Expenses Paid

(31,804)(33,688)

Income Taxes Paid

(792,568)(943,64)

2,191,206

3,868,623

Depreciation and Amortization

Loss (Gain) on Sales of Investment Securities
Loss on Impairment
Decrease (Increase) in Notes and Accounts ReceivableTrade

Sub total

Net Cash Provided by (Used in) Operating Activities

12(Thousands of Yen)
Year EndedYear Ended

October 31, 2018

October 31, 2019

Net Cash Provided by (Used in) Investment Activities
Disbursement to Time Deposits(4,000,000)(6,000,000)

Proceeds from Withdrawal of Time Deposits

4,000,000

6,000,000

Purchase of Property, Plant and Equipment(171,856)(468,183)

3,450

935

Purchase of Intangible Fixed Assets(41,586)(60,981)

Purchase of Investment Securities(21,340)(22,151)-

5,659

Payments of Loans Receivable(3,930)(2,580)

Collection of Loans Receivable

3,440

3,815

Guarantee Deposits (Increase)(47,005)(11,351)

Others, Net(2,427)

10,197(281,257)(544,640)

(100)

-

(449,027)(478,960)(449,127)(478,960)

97(51,297)

1,460,919

2,793,724

7,893,336

9,354,256

9,354,256

12,147,981

Proceeds from Sales of Property, Plant and Equipment

Proceeds from Sales of Investment Securities

Net Cash Provided by (Used in) Investment Activities
Net Cash Provided by (Used in) Financing Activities
Acquisition of Treasury Stock
Cash Dividends Paid
Net Cash Provided by (Used in) Financing Activities
Cash and Cash Equivalents
Effect of Exchange Rate Change on Cash and Cash
Equivalents
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Period
Cash and Cash Equivalents at End of This Fiscal Year13

(5) Notes for Consolidated Financial Statements(Notes for premise of going concern)
There are no pertinent matters to report.
(Change in presentation method)
Change in conjunction with application of the Partial Amendments to Accounting Standard for Tax Effect Accounting
Beginning from the start of the current consolidated fiscal year, the Company has applied the Partial Amendments to
Accounting Standard for Tax Effect Accounting (Accounting Standards Board of Japan Statement No. 28), andchanged its presentation method to classify deferred tax assets in Investments and Other Assets, and classify deferred
tax liabilities in Noncurrent Liabilities.
As a result of this change, in the consolidated balance sheet for the previous consolidated fiscal year “Deferred Tax
Assets” included in “Current Assets” decreased by 630,609,000 yen and “Deferred Tax Assets” included in “Investments
and Other Assets” increased by 16,436,000 yen. In addition, “Deferred Tax Liabilities” included in “Noncurrent Liabilities”
decreased by 614,172,000 yen.
Furthermore, Deferred Tax Assets and Deferred Tax Liabilities related to the same tax payments are presented after
being offset, and Total Assets decreased by 614,172,000 yen compared with what the amount otherwise would havebeen before the change.
(Consolidated Statements of Income)The item “Insurance Refunds” included in the “Others” category of Non-Operating Expenses in the previous
consolidated fiscal year has been stated as a separate item from the current consolidated fiscal year, because thematerial importance of the item has increased. To reflect this change in presentation method, 38,712,000 yen that was
included in the “Others” category of "Non-Operating Income” in the Consolidated Statement of Income for the previous
consolidated fiscal year has been restated as “Insurance Refunds” of 2,214,000 yen and “Others” of 36,498,000 yen.
(Segment information)
1. Summary of reporting segments
TOMOE Engineering Co., Ltd. has established two operational headquarters. These operational headquarters aredeveloping their business activities by planning comprehensive domestic and overseas strategies for the respective
manufactured and commercial products they handle.
We therefore have assumed these two businesses, referred to as the “Machinery & Equipment Business” and the“Chemical Products Business”, as our company reporting segments. The Machinery & Equipment Business mainly
manufactures and sells centrifuge decanters, and the Chemical Products Business mainly manufactures, stocks andsells chemical industry products.
The Company’s reporting segments are those units of the Company’s for which discrete financial information isavailable and for which the Board of Directors regularly conducts a review for the purpose of making decisions about
resources to be allocated to the segments and assess the segments' performance.
2. Method for calculating amounts of net sales, income or loss, assets, liabilities and other items for each reporting
segment
The accounting methods for reporting segments are identical to the accounting methods adopted for preparation of
the consolidated financial statements.

14

3. Information concerning the amount of net sales, income or loss, assets, liabilities and other items for each reporting
segment
Previous Consolidated Fiscal Year (Year Ended October 31, 2018)
Amount of
Adjustment
Note 1

Reporting segment
Machinery &Equipment
Business
Sales
Sales to Unaffiliated Customers
Internal Sales Among Segments
or Amount Transferred
Total
Segment Income
Segment Assets
Other Items
Depreciation & Amortization
Increase in Property, Plant &Equipment and Intangible Assets(Thousands of Yen)
Consolidated
Financial
Statements
Reported
AmountChemical
Products
Business

Total

11,172,075

31,186,218

42,358,294-

42,358,294

-

-

-

-

-

11,172,075
593,5999,545,062

31,186,218
1,784,011
17,056,979

42,358,294
2,377,610
26,602,041 10,729,818

42,358,294
2,377,610
37,331,859

298,179

101,888

400,068-

400,068

157,682

70,117

227,800-

227,800(Notes)1. The adjustment amount for segment assets is the assets of the entire company that cannot be allocated to eachreporting segment, and is mainly idle operating funds (cash on hand and in banks), long-term investments (investment
securities) and assets acquired in relation to a district redevelopment project.
2. The total amount for segment income agrees with the operating income reported on the Consolidated Statement of
Income.
Current Consolidated Fiscal Year (Year Ended October 31, 2019)
Amount of
Adjustment
Note 1

Reporting segment
Machinery &Equipment
Business
Sales
Sales to Unaffiliated Customers
Internal Sales Among Segments
or Amount Transferred
Total
Segment Income
Segment Assets
Other Items
Depreciation & Amortization
Increase in Property, Plant &Equipment and Intangible Assets(Thousands of Yen)
Consolidated
Financial
Statements
Reported
AmountChemical
Products
Business

Total

11,250,242

30,105,547

41,355,790-

41,355,790

-

-

-

-

-

11,250,242
971,674
9,479,554

30,105,547
1,404,583
16,048,821

41,355,790
2,376,258
25,528,376 13,542,570

41,355,790
2,376,258
39,070,946

266,620

97,574364,194-

364,194503,688

144,440

648,129-

648,129(Notes)1.The adjustment amount for segment assets is the assets of the entire company that cannot be allocated to eachreporting segment, and is mainly idle operating funds (cash on hand and in banks), long-term investments (investment
securities) and assets acquired in relation to a district redevelopment project.
2. The total amount for segment income agrees with the operating income reported on the Consolidated Statement of
Income.

15

(Related information)
Previous Consolidated Fiscal Year (Year Ended October 31, 2018)
1. Information by product and service
The Company has omitted a description of information by product and service because this same information is disclosed
in segment information.
2. Regional Information
1. Net SalesJapan
33,871,323(Thousands of Yen)Asia
7,406,701

Others1,080,268

Total
42,358,294(Note)Net sales are classified by country or region based on the customer’s location.
2. Property, Plant and Equipment
Japan4,710,886

Asia
189,972(Thousands of Yen)
Others141,230

Total
5,042,089

3. Main Customer Information
The Company has omitted a description of sales to outside customers because there are no customers to which sales
account for more than 10% of the net sales reported in the Consolidated Statements of Income.
Current Consolidated Fiscal Year (Year Ended October 31, 2019)
1. Information by product and service
The Company has omitted a description of information by product and service because this same information is disclosed
in segment information.
2. Regional Information
1. Net SalesJapan
32,748,508(Thousands of Yen)Asia
7,462,392

Others1,144,889

Total
41,355,790(Note) Net sales are classified by country or region based on the customer’s location.
2. Property, Plant and Equipment
Japan

Asia

4,851,345

275,708(Thousands of Yen)
OthersTotal

148,701

5,275,756

3. Main Customer Information
The Company has omitted a description of sales to outside customers because there are no customers to which sales
account for more than 10% of the net sales reported in the Consolidated Statements of Income.

16

(Information concerning impairment losses on fixed assets by reporting segment)
Previous Consolidated Fiscal Year (Year Ended October 31, 2018)
Reported segments
Machinery &Equipment
Business
Impairment loss

Chemical
Products
Business

24,037(Thousands of Yen)

Subtotal-

Elimination at
the Company

24,037

Total-

24,037

Current Consolidated Fiscal Year (Year Ended October 31, 2019)
There are no pertinent matters to report.
[Information concerning amortization of goodwill and unamortized balances by reporting segment]
There are no pertinent matters to report.
[Information concerning gain on negative goodwill by reporting segment]
There are no pertinent matters to report.
(Significant changes to subsidiaries during the period)
During the current consolidated fiscal year the Company established TOMOE ENGINEERING（TAICANG）CO.,LTD. (aspecified subsidiary) as a Company subsidiary, and said company has been included in the scope of consolidation.
(Per Share Information)
Year Ended
October 31, 2018
Net Asset per Share¥2,793.69

Year Ended
October 31, 2019
¥2,892.41

Net Income per Share¥151.64¥157.25(Note 1) Income per share for this fiscal year after adjustment of the residual securities is not presented as there are noresidual securities.
(Note 2) Calculation basis for net income per share are as follows:Year Ended
October 31, 2018Year Ended
October 31, 2019

Net Income for this Fiscal Year (thousands of yen)

1,513,160

1,569,110

Net Income for Common Stock (thousands of yen)

1,513,160

1,569,110

Average number of Common Stock during the Fiscal Year9,978,368

9,978,339(Note3) Calculation basis for net asset per share are as follows:Year Ended
October 31, 2018
Total for Net Asset in Consolidated Balance Sheet(thousands of yen)
Net Asset for Common Stock (thousands of yen)
Number of Common Stock used for calculation of Net Assets
per Share (share)(Significant subsequent events)
None

17

Year Ended
October 31, 201927,876,373

28,861,494

27,876,373

28,861,494

9,978,339

9,978,339

4. Other Notes(1) Changes of Officers (effective January 30, 2020)
1) Candidate for Director to be newly appointed (excluding the directors serving as Audit & Supervisory Committee
Members)
Name
Osamu Fujii

New Position

Current Position

Director (General Affairs Div. and Operation Div.)

General Manager, General Affairs Div.

General Manager, General Affairs Div.

2) Candidate for Director serving as Audit & Supervisory Committee Member
Name

New Position

Current Position

Masayoshi Fukasawa

Director serving as Audit & Supervisory Committee

Managing Director (General Affairs Div. andMemberOperation Div.)

3) Director scheduled to retire
Name

Current Position

Masayoshi Fukasawa

Managing Director (General Affairs Div. and Operation
Div.)

Mitsuo Matsumoto

Director serving as Audit & Supervisory Committee
Member18