Financial Results for the First Quarter Ended January 31, 2023
[Japan GAAP] (Consolidated)
Date:

March 14, 2023

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:
Investor Relations Contacts:

Akitomo Tamai
Kazuyuki Kitta, Director & Executive Officer, Accounting & Cooperate Planning Dept.
Tel: (03) 3442-5127

Date to report Quarterly Consolidated Financial Statement: March 16, 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: 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 First Quarter Ended January 31, 2023
(1) Results of Operation (Consolidated)

Quarter Ended January 31, 2023
Quarter Ended January 31, 2022

(Percent: Change from the same quarter of the previous year)
Net Sales
Operating Income
Ordinary Income
Millions ofMillions ofMillions ofYen
Percent
Yen
Percent
Yen
Percent
11,12811.7
558
5.7
550-1.6
9,960
528
-18.6
559
-17.1

Quarter Ended January 31, 2023
Quarter Ended January 31, 2022

Net Income Attributable toOwners of the Parent
Millions ofYen
Percent
390
-43.4
689
38.6

Net Income per Share

Fully Diluted Quarterly
Net Income per Share

Yen
39.15
69.14

Yen-(Note) Comprehensive income
First Quarter ended January 31, 2023: 103 million yen (-85.3%)

First Quarter ended January 31, 2022: 708 million yen (20.4%)(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 January 31, 2023
Year Ended October 31, 2022

Total Assets (A)(Millions of Yen)
44,63045,742(Reference) Net assets
First Quarter ended January 31, 2023: 34,212 million yen

Net Assets (B)(Millions of Yen)
34,212
34,387

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-

Net Assets Ratio(B) / (A) (Percent)
76.7
75.2

InterimTerm
25.00

Annual Dividend (Yen)Third
End ofQuarter
Fiscal Year
28.00

28.00

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

28.00

Annual53.00
56.00

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 Year47,380
3.9
2,940
-10.9
2,970-13.2
Net Income Attributable to Net Income per ShareOwners of the Parent(Millions of Yen) (Percent)
Yen
Full Business Year
2,040-23.3
204.44(Note) Revisions since the most recently released earnings forecast: NoneNotes(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) Changes 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
Please refer to the Attachments for the details on page 8, (3) [Notes on Quarterly Consolidated FinancialStatements] of 2. [Quarterly Consolidated Financial Statements and Notes.
(4) Number of outstanding shares (Common stock)1) Number of outstanding shares as of quarter-end and year-end (including treasury stocks)
At January 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 January 31, 2023: 554,940 shares

At October 31, 2022: 554,940 shares

3) Number of average shares (accumulated quarterly total)
At January 31, 2023: 9,978,260 shares

At January 31, 2022: 9,978,289 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 Quarterly Consolidated Earnings Forecast.......................................................3
2. Quarterly Consolidated Financial Statements and Notes................................................................................................4(1) Quarterly Consolidated Balance Sheet................................................................................................4(2) Quarterly Consolidated Statement of Income & Quarterly Consolidated Statement of Comprehensive
Income.......................................................................................................................................................................6Quarterly Consolidated Statement of Income.....................................................................................................6Quarterly Consolidated Statement 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) ......................................................................................................................... 81

1. Qualitative Information on Quarterly Consolidated Operating Results(1) Analysis of Operating Results
During the first quarter of the current consolidated fiscal year, although capital investment showed little growth,
Japan’s economy recorded positive growth against a backdrop of growth in personal consumption and exports.
On the other hand, overseas, although the U.S. economy remained strong, the growth rates in the Chinese andEuropean economies slowed.
Given these circumstances, net sales for the Tomoe Engineering Group for the consolidated first quarter were
11,128 million yen, increased by 11.7% over the same period of the previous year, reflecting increased net sales in
the Chemical Products Business, despite of lower net sales in the Machinery & Equipment Business. From anearnings aspect, operating income was 558 million yen, 5.7% up from the same period of the previous year becauseof higher income in the Chemical Products Business. Ordinary income came to 550 million yen, 1.6% down overthe same period of a year earlier because of increased non-operating expenses, and net income attributable toowners of the parent was 390 million yen, 43.4% 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 respective segment were as follows.
(Machinery & Equipment Business)
In the Machinery & Equipment Business, consolidated year-to-date net sales for the first quarter were 1,815 million yen,
5.6% down from the same period of a year earlier. This reflected slower growth in net sales of machinery, equipment
and construction works for domestic public sector demand, and components and repair services, despite growth in net
sales of machinery for domestic private sector demand and overseas markets.
Product classification

Public sector

January, 2022

173

January, 2023

19150

418

588

-154

-67

-48

-270

1717421

457

132

0362

494

114

-17-58

37

150

0457

607

2850446

732

135

0-10

125

341

236

1,345

1,923

436

150

1,227

1,815

95

-85

-117

-107

January, 2022
Private sector

January, 2023
Difference
January, 2022

Overseas
markets

January, 2023
Difference
January, 2022

TOTAL

(Millions of Yen)

Equipment
andconstruction
works
218

Difference

January, 2023
Difference

Machinery

Components
and repair
services
466

859

TOTAL

With respect to earnings, operating income turned to a loss of 301 million yen. This mainly reflected slower growth innet sales of machinery, equipment and construction works for domestic public sector demand, and components andrepair services for all fields.

2

(Chemical Products Business)
In the Chemical Products Business, consolidated year-to-date net sales for the first quarter were 9,312 million yen,
15.0% up from the same period of a year earlier. This mainly reflected growth in net sales of materials for resin andproducts in the synthetic resin sector, materials mainly for building and motor vehicles in the mineral products sector,
materials mainly for paint and ink applications in the chemical products sector, and materials for semiconductor
manufacturing devices in advanced materials sector and in the electronic materials sector.
(Millions of Yen)
January, 2022

January, 2023

Difference

Synthetic resin sector

1,159

1,373

214

Industrial materials sector

1,494

1,437-57

Mineral products sector

1,193

1,462

269

Chemical products sector

1,938

2,123

184

Advanced materials sector

919

1,407

487

Electronic materials sector

1,246

1,415

168

Other products (foreign liquor)

85

93

88,037

9,312

1,275

Total

With respect to earnings during the period, operating income was 860 million yen, 52.1% up from the same period ofa year earlier, reflecting strong sales.
(2) Analysis of Financial Condition
Total assets as of the end of the consolidated first quarter under review were 44,630 million yen, down 2.4% or 1,111
million yen from the end of the previous consolidated fiscal year. This mainly reflected a decrease in cash anddeposits, despite increases in electronically recorded monetary claims and work in process.
Liabilities were 10,418 million yen, down 8.2% or 935 million yen from the end of the previous consolidated fiscal year,
mainly because of decreases in provision for bonuses and income tax payable, despite higher contract liabilities.
Net assets stood at 34,212 million yen, 175 million yen or 0.5% down from the end of the previous consolidated fiscal year.
This mainly reflected a decrease in foreign currency translation adjustment, despite an increase in retained earnings.
As a result of the above changes, the equity ratio at the end of the consolidated first quarter under review
increased by 1.5 point compared with the end of the previous consolidated fiscal year to 76.7%.
(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 in October 31, 2023
that were announced in the “Financial Results for the Fiscal Year Ended October 31, 2022 [Japan GAAP](Consolidated)” released on December 14, 2022.

3

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet (First Quarter)(Thousands of Yen)
End of Previous YearEnd of First Quarter(October. 31, 2022)(January 31, 2023)

AssetsCurrent Assets

10,732,583

8,413,445

13,297,25212,604,590

Electronically Recorded Monetary Claims

3,466,717

4,252,811

Merchandise and Finished Goods

5,839,927

6,036,677

Work in Process

1,282,752

1,868,829

Raw Materials and Supplies

1,120,659

1,422,307

Others323,406

363,767

Allowance for Doubtful Accounts
Total Current Assets-83,122-76,329

Cash and Deposits
Notes, Accounts Receivable-Trade and Contract
Assets35,980,178

34,886,099

5,144,878

5,111,273

Accumulated Depreciation-2,209,570

Buildings and Structures, Net

2,935,308

Machinery, Equipment and Vehicles

4,298,347-2,227,880

Noncurrent Assets
Property, Plant and Equipment
Buildings and Structures

Accumulated Depreciation-3,820,079

Machinery, Equipment and Vehicles, Net

478,268Land

2,304,010

Construction in progress
Others
Accumulated Depreciation-3,756,238
475,885

2,303,220－

1,139,081

1,149,501-1,049,820-1,057,234

5,824,196

Total Property, Plant and Equipment

4,232,124

17,34789,261Others, Net

2,883,393

92,266

5,754,765

86,83596,888Investment Securities

1,306,889

1,342,931

Guarantee Deposits

563,224

558,971

1,908,2441,921,827

Deferred Tax Assets

6,291

312

Others

88,30490,935

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

Total Investments and Other Assets

3,851,061

3,893,086

Total Noncurrent Assets

9,762,093

9,744,741

Total Assets

45,742,272

44,630,840

Intangible Assets
Investments and Other Assets

Net Defined Benefit Assets4

(Thousands of Yen)
End of Previous YearEnd of First Quarter(October. 31, 2022)(January 31, 2023)

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

4,582,839

Electronically Recorded Monetary Debt

2,238,380

Accounts Payable-Others

744,644

Income Taxes Payable

769,585

Contract Liabilities

291,848
1,507,631

Provision for Bonuses

4,567,743
2,355,864
748,990
30,874
793,987
543,893

Provision for Directors' Bonuses

103,889

Allowance for Product Warranty

200,287

224,610

Others236,306
10,675,412

313,7079,604,605

5,460

－

Net Defined Benefit Liabilities

74,120

Deferred Tax Liabilities

76,482599,474

737,382

Total Noncurrent Liabilities

679,055

Total Liabilities

813,864

11,354,468

10,418,470

Capital Stock

1,061,210

Capital Surplus

1,483,410

1,061,210

Retained Earnings

30,882,276

30,993,500-364,148-364,148

Total Shareholders’ Equity

33,062,747

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

33,173,972

362,745

Foreign Currency Translation Adjustment

801,149

Total Adjustment on Net Defined Benefit

149,523

Total Current Liabilities
Noncurrent Liabilities
Provision for Directors' Retirement Benefits

Net Assets

24,932

Shareholders’ Equity

Treasury Stock

11,637

1,483,410

388,344-18,000
527,189
140,865

Total Accumulated Other Comprehensive Income

1,325,056

1,038,398

Total Net Assets

34,387,804

Total Liabilities and Net Assets

34,212,370

45,742,272

44,630,840

5

(2) Quarterly Consolidated Statement of Income & Quarterly Consolidated Statement of Comprehensive
IncomeQuarterly Consolidated Statement of Income (First Quarter)(Thousands of Yen)First Quarter Ended
January 31, 2023

First Quarter Ended
January 31, 2022
Net Sales

9,960,706

11,128,301

Cost of Sales

7,553,873

8,552,576

2,406,832

2,575,724

1,878,013

2,017,012

528,819558,712Interest Income3833,443

Dividends Income

14,191

16,983

Rent Income

1,851

2,007

Foreign Exchange Gains

2,623－Others

13,4987,800

32,54930,235Interest Expenses

536

213

Commission Paid756

756

Gross Profit
Selling, General and Administrative Expenses
Operating Income
Non-Operating Income

Total Non-Operating Income
Non-Operating Expenses

Sales Discount－36,834

Others541

493

Total Non-Operating Expenses

1,834

38,297

Ordinary Income

559,534

550,650

456,447－

Extraordinary Profits
Profit on Sales of Noncurrent Assets－242

Total Extraordinary Profits

456,447

242

Income before Income Taxes and Minority Interests1,015,981

550,893

Income Taxes-Current

17,823

9,628

Income Taxes-Deferred

308,263

150,649

326,086

160,277

Net Income

689,895

390,615Net Income Attributable to689,895

390,615

Profit on Sales of Investment Securities

Total Income Taxes

Owners of the Parent

6

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

First Quarter Ended

January 31, 2022
689,895

January 31, 2023
390,615

Valuation Difference on Available-for-sale Securities-54,730

25,598Deferred Gains or Losses (-) on Hedges-5,086-29,638

Foreign Currency Translation Adjustment

89,916-273,960

Net Defined Benefit-11,188-8,657

Total Other Comprehensive Income

18,910-286,658

708,805

103,957

708,805

103,957

Net Income
Other Comprehensive Income

Comprehensive Income(Breakdown)Comprehensive Income Attributable to Owners of theParent7

(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.
(Segment information, etc.)[Segment information]
First Quarter Ended January 31, 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

1,923,534

8,037,171

9,960,706

9,960,706----Total

1,923,534

8,037,171

9,960,706

9,960,706

Segment Profit or Loss (-)-36,694565,514528,819

528,819

Net Sales
Net Sales to UnaffiliatedCustomers
Internal Net Sales amongSegments or AmountTransferred

Total

Grand Total(Note) The total amount of segment profit is identical to the operating income reported on the Quarterly Consolidated Statements of Income.

First Quarter Ended January 31, 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

1,815,614

9,312,686

11,128,301

11,128,301----Total

1,815,614

9,312,686

11,128,301

11,128,301

Segment Profit or Loss (-)-301,544

860,257

558,712558,712Net Sales
Net Sales to UnaffiliatedCustomers
Internal Net Sales among
Segments or AmountTransferredTotal

Grand Total(Note) The total amount of segment profit is identical to the operating income reported on the Quarterly Consolidated Statements of Income.

8