Financial Results for the Fiscal Year Ended October 31, 2020
[Japan GAAP] (Consolidated)
Date:

December 14, 2020

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 28, 2021
Date of Dividend Payment:

January 29, 2021

Date of Financial Statement: January 28, 2021
Preparation of Supplementary Explanatory Materials for Annual Operating Results: Yes
Briefing Session for Annual Operating Results: No* Any fractional sums less than one million (or one thousand) yen are disregarded
1. Consolidated Financial Results for the Year Ended October 31, 2020
(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, 2020
39,218-5.2
2,260Year Ended
October 31, 2019
41,355-2.4
2,376(Note) Comprehensive income
Fiscal year ended October 31, 2020: 1,276 million yen (-12.8%)
Fiscal year ended October 31, 2019: 1,464 million yen (11.2%)
Net Income Attributableto Owners of the Parent(Millions of Yen)

(Percent)

Net
Income per
Share
(Yen)

(Percent)(Millions of Yen)

(Percent)

-4.9

2,294

-3.8

-0.1

2,384

2.1

Fully Diluted Net
Income per
Share
(Yen)

Return on
EquityReturn on
AssetsReturn on
Sales(Percent)(Percent)(Percent)

5.2

5.9

5.8

5.5

6.2

5.7

Year Ended
October 31, 2020
1,532
-2.3
153.56
Year Ended
October 31, 2019
1,569
3.7
157.25(Reference) Equity in earnings (loss) of unconsolidated subsidiaries and affiliates
Fiscal year ended October 31, 2020: None
Fiscal year ended October 31, 2019: 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)

77.2

2,973.31

73.9

2,892.41

Year Ended
October 31, 2020
38,43829,668Year Ended
October 31, 2019
39,07028,861(Reference) Net assets
Fiscal year ended October 31, 2020: 29,668 million yen
Fiscal year ended October 31, 2019: 28,861 million yen

(3) Cash Flows (Consolidated)
Net Cash Provided(Used) by Operating
Activities
Year Ended
October 31, 2020
661
Year Ended
October 31, 2019
3,868

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

(485)

(468)

11,857

(544)

(478)

12,147

2. Dividend Status
Dividend per Share (Yen)
SecondEnd ofThird Quarter
Quarter
Fiscal Year
23.50
23.50
23.50
24.50
25.00
25.00

First Quarter
Year Ending October 31, 2019Year Ending October 31, 2020
Year Ending October 31, 2021(Prospect)

-

Total
47.00
48.00
50.00

Total Dividend

Dividend Payout Ratio(Consolidated)

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

(Percent)(Percent)

468
478

29.9
31.3
35.1

1.7
1.6

Year Ending October 31, 2019Year Ending October 31, 2020
Year Ending October 31, 2021(Prospect)

3. Forecast for the Year Ending October 31, 2021 (Consolidated)(Percent: Change from the previous year for the full business year and 6-month period)
Sales
Full Business Year

Operating Income(Millions of Yen)

(Percent)(Millions of Yen)

(Percent)(Millions of Yen)

(Percent)

41,500

5.8

2,080

-8.0

2,080

-9.4

Net Income Attributable to
Owners of the Parent
Full Business Year

Ordinary Income

Net Income per Share(Millions of Yen)

(Percent)

(Yen)

1,420

-7.3

142.31

Notes(1) Significant changes in subsidiaries during this period (changes in specific subsidiaries involving changes in thescope of consolidation): None
Addition: None
Deletion: None
(2) Changes in accounting principles, changes in accounting estimates, and retrospective restatements
1) Changes in accounting principles due to revision of accounting standard: None
2) Other changes in accounting principles 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, 2020: 10,533,200 shares

At October 31, 2019: 10,533,200 shares

2) Number of treasury stocks at year-end
At October 31, 2020: 554,861 shares

At October 31, 2019: 554,861 shares

3) Number of average shares
At October 31, 2020: 9,978,339 shares

At October 31, 2019: 9,978,339 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
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 5.

Table of Contents of Accompanying Documents
1. Overview of Operating Results………………………………………………………………………………………..2(1) Overview Concerning Current Operating Results………………………………………………………………....2(2) Overview Concerning Current Financial Condition………………………………………………..…………………3(3) Overview Concerning Current Cash Flow………………………………………………………..……………………3(4) Outlook for the Next Fiscal Year…………………………………………………………………..……………………5(5) Basic Policy for Profit Sharing and Dividends for Fiscal 2020 and 2020………………………………….......5
2. Basic Approach to the Selection of Accounting Standards…………………………..………………………………6
3. Consolidated Financial Statements and Main Notes………………………………………………………………....7(1) Balance Sheets…………………………………………………………………………………………………...7(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income…………….9
Consolidated Statements of Income………………………………………………………………………………....9
Consolidated Statements of Comprehensive Income……………………………………………………………... 10(3) Consolidated Statements of Changes in Shareholders' Equity……………………………………………………...11(4) Consolidated Statements of Cash Flows………………………………………………………………………...13(5) Notes for Consolidated Financial Statements…………………………………………………………………..15(Notes for premise of going concern)…………………………………………………………………………... 15(Change in presentation method)……………………………………………………………………………………... 15(Additional information)……………………………………………………………………………………………... 15(Segment information)……………………………………………………………………………………………... 15(Per Share information)………………………………………………………….…………………………………18(Significant subsequent events)………………………………………………………………………………….18
4 Other Notes…………………………………………………………….………………………………………………....19(1) Changes of Officers (effective January 28, 2021)………………………………………………………………...19

1

1. Overview of Operating Results(1) Overview Concerning Current Operating Results
During the consolidated fiscal year under review, Japan’s economy was sluggish at the beginning of the period as
personal consumption in particular was hampered by factors such as the consumption tax increase, and theeconomy experienced a significant downturn during the second half of the year under the impact of the coronavirus
pandemic. Despite recovery activity that has begun to be noted recently, including a return to growth in personal
consumption and exports, the economy has not recovered to the level sustained before the spread of the virus.
Overseas, China’s economy has returned to moderate growth, and there are signs of recovery in the U.S. andEuropean economies, but virus are spreading again in both regions and conditions make it difficult to be optimistic.
Given these circumstances, full-year net sales for the Tomoe Engineering Group were 39,218 million yen, 5.2%
down compared with the previous fiscal year, reflecting declined net sales in the Chemical Product Business,and increased net sales in the Machinery & Equipment Business. With respect to earnings during the period,
operating income was 2,260 million yen, 4.9% down from the previous consolidated fiscal year because of lower
sales in the Chemical Products Business. Ordinary income came to 2,294 million yen, 3.8% down from theprevious consolidated fiscal year, and net income attributable to owners of the parent was 1,532 million yen, 2.3%
down from the previous consolidated fiscal year.
Operating results by segment were as follows.
(Machinery & Equipment Business)
In the Machinery and Equipment Business, net sales for the current consolidated fiscal year were 11,553 million
yen, 2.7% up compared with the previous fiscal year. Although net sales of component and repair services
declined, mainly because of sluggish growth overseas centered on Asia and weaker domestic public and private
sector demand, net sales of machinery remained steady on the strength of orders for large-scale projects for China
and the domestic public sector, as well as for domestic private sector demand, and net sales of equipment andconstruction also expanded against the backdrop of large projects to meet domestic private sector demand.
(Millions of Yen)
Productclassification

Machinery

Equipment andconstruction
works

Components
and repair
services

TOTAL

October, 2020

682

1,214

2,473

4,370

October, 2019

364

435

2,765

3,565

Difference

318

778

-291

804

October, 2020

745

120

2,022

2,888

October, 2019

633

293

2,075

3,002

Difference

111

-172

-52

-113

October, 2020

2,119

5

2,169

4,294

Overseas

October, 2019

1,693

58

2,929

4,682

markets

Difference

426

-53

-760

-387

October, 2020

3,547

1,340

6,665

11,553October, 2019

2,692

787

7,770

11,250Difference

855

552

-1,104303

Public sector

Private sector

TOTAL

With respect to earnings, operating income was 926 million yen, 4.7% down from the previous fiscal year, mainly
because of lower sales in the field of components and repair services for overseas which had high margins, andincreased selling costs.

2

(Chemical Products Business)
In the Chemical Products Business, net sales of materials for semiconductor manufacturing applications in theelectronic materials sector increased, but on the other hand net sales of materials for motor vehicles andconstruction applications in the industrial materials sector, resin and products for domestic and overseas markets
in the synthetic resin sector, and materials for ink and coating in the chemical products sector decreased, all ofwhich were affected by the rising number of coronavirus infections. As a result, consolidated net sales for the
fiscal year were 27,664 million yen, 8.1% down from the previous consolidated fiscal year.
(Millions of Yen)
October, 2019

October, 2020

Synthetic resin sector

7,424

6,425

-999

Industrial materials sector

9,314

7,969

-1,345Chemical products sector

6,194

5,981

-212

Advanced materials sector

3,285

3,284

-1

Electronic materials sector

3,573

3,730

156

312

274

-38

30,10527,664-2,440

Other products (foreign liquor)
Total

DifferenceWith respect to earnings, operating income was 1,334 million yen, 5.0% down from the previous fiscal year becauseof declined gross-profit margin.
(2) Overview Concerning Current Financial Condition
Current assets at the end of the consolidated fiscal year were 29,939 million yen, down 321 million from the balanceat the end of the previous consolidated fiscal year, reflecting a decrease in merchandise and finished goods, and incash and deposits, despite an increase in work in process, and in electronically recorded monetary claims.
Noncurrent assets were 8,499 million yen, down 311 million yen from the balance at the end of the previous
consolidated fiscal year, reflecting a decrease in investment securities, and in net defined benefit assets, despite anincrease in guarantee deposits.
Liabilities were 8,769 million yen, decreased by 1,439 million yen from the end of the previous consolidated fiscal
year, mainly because of a decrease in notes and accounts payable-trade, and in advances received, despite anincrease in electronically recorded monetary debt.
Net assets were 29,668 million yen, up 807 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, despite a decrease of valuation difference on available-for-sale securities, and in
total adjustment on net defined benefit.
As a result of the above changes, the equity ratio at the end of the consolidated fiscal year increased by 3.3
point to 77.2% from 73.9% at the end of the previous consolidated fiscal year.
(3) Overview Concerning Current Cash Flow
Cash and cash equivalents (“cash”) as of the end of the current consolidated fiscal year decreased by 290 million
yen from the end of the previous consolidated fiscal year to 11,857 million yen, reflecting expenditures for bothinvestment and financing activities, despite positive cash flow provided by operating activities. The status of eachconsolidated cash flow and their factors during the current consolidated fiscal year are as follows:3

(Net Cash Provided by (Used in) Operating Activities)
Net cash provided by operating activities was 661 million yen. This reflected a decrease in income taxes payment
used by 863 million yen and notes and accounts payable-trade by 817 million yen, and an increase in in income
before income taxes by 2,293 million yen, reservation for depreciation and amortization by 360 million yen. Net
cash provided was decreased by 3,206 million yen from 3,868 million yen in the previous consolidated fiscal year.
(Net Cash Provided by (Used in) Investing Activities)
Net cash used in investing activities was 485 million yen. This reflected purchase of property, plant and equipmentof 373 million yen, and increased guarantee deposits of 48 million yen. Net cash used was decreased by 58 million
yen from 544 million yen in the previous consolidated fiscal year.
(Net Cash Provided by (Used in) Financing Activities)

Net cash used in financing activities was 468 million yen mainly for the payment of cash dividends in 468 million yen.
Net cash used was decreased by 9 million yen from 478 million yen in the previous consolidated fiscal year.
Trends in cash flow indices

Equity Ratio (Percent)
Equity Ratio Based on
Market Value (Percent)Year Ended
October 31,
2016

Year Ended
October 31,
2017

Year Ended
October 31,
2018

Year Ended
October 31,
2019

Year Ended
October 31,
2020

72.4

73.8

74.7

73.9

77.2

44.3

59.1

58.3

60.3

50.4

Debt-repayment to Cash
Flow Ratio (Years)

0.0

0.2

0.0

0.0

0.1

Interest Coverage Ratio(Percent)

735.6

28.3

68.9

114.8

93.0

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(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 Fiscal Year ended October 31, 2019, 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

(4) Outlook for the Next Fiscal Year (November 1, 2020 - October 31, 2021)
In the consolidated fiscal year ending October 31, 2021, Japan’s economy is expected to recover gradually. While
the pandemic is unlikely to be brought fully under control, by the end of the fiscal year the Company’s businessenvironment is expected to return to a level approximating conditions that existed before the spread of thecoronavirus, focused on automobiles and building materials. Overseas, China’s economy is expected to growsteadily, and the U.S. and European economies are expected to recover gradually, but the resurgence of virus
infections in Europe and the U.S. has created circumstances that make a more optimistic view difficult.
In the Machinery and Equipment Business, consolidated net sales are expected to reach 12,850 million yen, 11.2%
up from the previous consolidated fiscal year. Net sales of machinery in all sectors, net sales of equipment andconstruction for domestic public sector demand and overseas, and net sales of components and repair services fordomestic private sector demand and overseas, are all projected to be higher. On the other hand, operating income
is expected to come to 790 million yen, 14.7% down compared with the previous consolidated fiscal year, reflecting
lower profit margins across all fields including components and repair services for overseas markets, which boosted
the Company’s earnings in the previous consolidated fiscal year, and an increase in selling, general andadministrative expenses for sales development and R&D that will contribute to future growth, which were curtailed in
the previous consolidated fiscal year because of the coronavirus pandemic. In the Chemical Products Business,consolidated net sales are expected to amount to 28,650 million yen, 3.6% up compared with the previous
consolidated fiscal year, mainly reflecting growth in sales of resin raw materials and products in the domestic andoverseas synthetic resin sector together with sales of materials for automotive and building materials applications in
the industrial materials sector, and operating income is expected to be 1,290 million yen, 3.3% down from theprevious consolidated fiscal year as the result of an increase in selling and administrative expenses related to sales
development that will contribute to future growth, which was restrained in the previous consolidated fiscal year
because of the spread of coronavirus infections.
As a result of these efforts, for the entire Tomoe Engineering Group in the consolidated fiscal year ending October 31,
2021, we project net sales to grow by 5.8% to 41,500 million yen, operating income to decrease by 8.0% to 2,080 million
yen, ordinary income to decrease by 9.4% to 2,080 million yen, and net income attributable to the shareholders of theparent company to decrease by 7.3% to 1,420 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.
(5) Basic Policy for Profit Sharing and Dividends for Fiscal 2020 and 2021
As its basic policy, the Tomoe Engineering Group will “implement appropriate, stable dividends by seeking toincrease internal 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 24.5 yen per share (annual dividend of 48.0 yen per share)at the end of the consolidated fiscal year ending on October 31, 2020, up 1.0 yen per share from the previous
consolidated fiscal year, considering of our financial position and operating results for this fiscal year and the outlook
in future.
For the dividend for the next consolidated fiscal year, we plan to pay 50 yen per share (including an interim dividend
per share of 25.0 yen), based on consideration of the condition of our financial position and the outlook forconsolidated operating results.

5

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.

63. Consolidated Financial Statements and Main Notes(1) Balance Sheets(Thousands of Yen)
Year Ended October 31, 2019Year Ended October 31, 2020

Cash and Deposits

12,147,981

11,857,553

Notes and Accounts Receivable-Trade

10,432,830

10,400,639

Electronically Recorded Monetary Claims

1,904,539

2,131,545

Merchandise and Finished Goods

3,242,217

2,605,708

Work in Process

1,200,360

1,684,070

Raw Materials and Supplies

1,014,166

1,066,944

Others381,860

253,335

Allowance for Doubtful Accounts
Total Current Assets-63,652‐60,767

AssetsCurrent Assets

30,260,304

29,939,029

4,608,252

4,722,504

Accumulated Depreciation-1,954,347

Buildings and Structures, Net

2,653,904

Machinery, Equipment and Vehicles

3,771,107‐2,026,932

Noncurrent Assets
Property, Plant and Equipment
Buildings and Structures-3,284,685

Accumulated Depreciation

486,422

Machinery, Equipment and Vehicles, Net

1,930,720

LandConstruction in progress
Others
Accumulated Depreciation

3,826,069‐3,360,809
465,260

1,930,580

123,271－

1,036,746

1,071,431-955,308‐959,930

81,437

Others, Net

2,695,571

111,500

5,275,756

5,202,912

129,094

128,516

Investment Securities

1,393,589

1,227,085

Guarantee Deposits

349,795

398,405

1,588,079

1,473,503

Deferred Tax Assets
Others16,446

12,14380,562

79,027

Allowance for Doubtful Accounts-22,681

Total Investments and Other Assets

3,405,791

3,167,873

Total Noncurrent Assets

8,810,642‐22,291

8,499,302

Total Assets

39,070,946

38,438,331

Total Property, Plant and Equipment
Intangible Assets
Investments and Other Assets

Net Defined Benefit Assets7

(Thousands of Yen)
Year Ended October 31, 2019Year Ended October 31, 2020

Notes and Accounts Payable-Trade

4,165,190

3,004,198

Electronically Recorded Monetary Debt

1,822,509

2,150,419

Accounts Payable-Others

821,503621,692

Income Taxes Payable

430,816

179,968

Advances Received

577,512201,993

Provision for Bonuses

1,160,657

1,231,975

Provision for Directors' Bonuses

72,62761,555

Allowance for Product Warranty

313,350

236,423

Others

199,898397,235

9,564,068

8,085,462

5,460

5,460

Liabilities and Net Assets
Liabilities
Current Liabilities

Total Current Liabilities
Noncurrent Liabilities
Provision for Directors' Retirement Benefits
Net Defined Benefit Liabilities

63,20871,219Deferred Tax Liabilities

576,715

607,445

Total Noncurrent Liabilities

645,384

684,124

Total Liabilities

10,209,452

8,769,587

Capital Stock

1,061,210

1,061,210

Capital Surplus

1,483,410

1,483,410

Retained Earnings

26,043,930

27,107,252

Treasury Stock-363,977-363,977

Total Shareholders’ Equity

28,224,573

29,287,895

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

439,359

307,456

1,954-1,566

Foreign Currency Translation Adjustment

83,282

92,854

Total Adjustment on Net Defined Benefit

112,324-17,896

Total Accumulated Other Comprehensive Income

636,920

380,848

Total Net Assets

28,861,494

29,668,743

Total Liabilities and Net Assets

39,070,946

38,438,331

Net Assets
Shareholders’ Equity8(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive
IncomeConsolidated Statements of Income(Thousands of Yen)
Year Ended October 31, 2019Year Ended October 31, 2020

Net Sales

41,355,790

39,218,418

Cost of Sales

32,006,364

30,079,424

Gross Profit

9,349,425

9,138,994

Selling, General and Administrative Expenses

6,973,166

6,878,358

Operating Income

2,376,258

2,260,635

Interest income

1,667

2,976

Dividends Income

32,07533,505

Rent Income

7,171

7,171

Insurance Return

13,382
27,635

4,427
30,613

81,932

78,694

Interest Expenses

33,688

7,114

Commission Paid

8,999

9,008

Sales Discount

7,432

6,093

Foreign Exchange Losses

18,09016,418Others

5,486

5,826

Total Non-Operating Expenses

73,69744,460Ordinary Income

2,384,493

2,294,869

－

921

－

921

5,621

－

－

2,160

5,621

2,160

2,378,871

2,293,630

Income Taxes-Current

839,902617,829

Income Taxes-Deferred-30,141

143,496

Total Income Taxes

809,760

761,325

Net Income
Net Income Attributable to
Owners of the Parent

1,569,110

1,532,304

1,569,110

1,532,304

Non-Operating Income

OthersTotal Non-Operating Income
Non-Operating Expenses

Extraordinary Profits
Profit on Sales of Investment Securities
Total Extraordinary Profits
Extraordinary Losses
Loss on Sales of Investment Securities
Loss on Valuation of Investment Securities
Total Extraordinary Losses
Income before Income Taxes

9

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

Year Ended October 31,

2019

2020
1,569,110

1,532,304

Valuation Difference on Available-for-sale Securities

6,261-131,902

Deferred Gains or Losses on Hedges

1,824-3,521

Foreign Currency Translation Adjustment-102,938

9,572

Adjustment on Net Defined Benefit-10,177-130,220

Total Other Comprehensive Income-105,030-256,072

1,464,080

1,276,231

1,464,080

1,276,231

Net Income
Other Comprehensive Income

Comprehensive Income(Breakdown)Comprehensive Income Attributable to Owners of the
Parent10

(3) Consolidated Statements of Changes in Shareholders' Equity
Previous 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
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
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

Current Consolidated Fiscal Year (Year Ended October 31, 2020)(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
Total (Net) Amount
Changed (Except
Shareholders' Equity)
Total Amount Changed
Surplus during This Fiscal
Year

CommonStockCapitalSurplusRetained
Earnings

1,061,210

1,483,410

26,043,930

Issued Shares
Reacquired‐363,977‐468,981

Total Net
Assets28,224,573‐468,981

1,532,304

1,532,304－－

1,063,322－

1,063,322

1,061,210

1,483,410

27,107,252-363,977

29,287,895

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
Total (Net) Amount
Changed (Except
Shareholders' Equity)
Total Amount Changed
Surplus during This
Fiscal Year439,359

Deferred
Gains or
Losses on
Hedges1,954

Foreign
Currency
Translation
Adjustment

83,282

Total Net
DefinedBenefit112,324

Total Other
Comprehensiv
e Income

636,920

Total Net
Assets28,861,494‐468,981

1,532,304‐131,902‐3,521

307,456‐1,566‐131,902‐3,521

9,572
9,572
92,85412‐130,220‐256,072‐256,072‐17,896

380,848

29,668,743‐130,220‐256,072

807,249

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

October 31, 2019

October 31, 2020

Net Cash Provided by (Used in) Operating Activities
2,378,871
364,194

2,293,630

Increase (Decrease) in Provision for Bonuses

80,226

71,377

Increase (Decrease) in Provision for Directors' Bonuses

2,627(11,072)

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

153,055(76,927)

5,302

8,010

Decrease (Increase ) in Net Defined Benefit Asset(17,531)(46,687)(315)(2,109)Interests and Dividends Income(33,743)(36,481)Interest Expenses

33,6887,114

Foreign Exchange Losses (Gains)

11,664

27,769Loss (Gain) on Sales of Investment Securities

5,621

(921)

1,656,813(211,807)

Decrease (Increase) in Inventories(156,401)

80,873

Increase (Decrease) in Notes and Accounts Payable-Trade(48,440)(817,191)

Increase (Decrease) in Evaluation of Investment Securities

－

2,160

Increase (Decrease) in Accounts Payable-Others

102,583(81,663)

Increase (Decrease) in Advances Received

509,626(375,375)

Increase (Decrease) in Unpaid Consumption Tax(52,634)

162,500

Others, Net(182,911)

142,0814,812,299

1,496,169

Interests and Dividends Income Received

33,66036,571

Interest Expenses Paid

(33,688)(7,114)

Income Taxes Paid

(943,648)(863,839)

3,868,623

661,786

Income before Income Taxes and Minority Interests
Depreciation and Amortization

Increase (Decrease) in Allowance for Doubtful Accounts

Decrease (Increase) in Notes and Accounts ReceivableTrade

Sub total

Net Cash Provided by (Used in) Operating Activities

13

360,890(Thousands of Yen)
Year EndedYear Ended

October 31, 2019

October 31, 2020

Net Cash Provided by (Used in) Investment Activities
Disbursement to Time Deposits(6,000,000)(8,000,000)

Proceeds from Withdrawal of Time Deposits

6,000,000

8,000,000

Purchase of Property, Plant and Equipment(468,183)(373,384)

935－

Purchase of Intangible Fixed Assets(60,981)(44,980)

Purchase of Investment Securities(22,151)(21,991)

Proceeds from Sales of Investment Securities

5,659

1,674

Payments of Loans Receivable(2,580)(1,640)

Collection of Loans Receivable

3,815

2,805

Guarantee Deposits (Increase)(11,351)(48,952)

Others, Net

10,197546(544,640)(485,922)(478,960)(468,981)(478,960)(468,981)(51,297)

2,690

Proceeds from Sales of Property, Plant and Equipment

Net Cash Provided by (Used in) Investment Activities
Net Cash Provided by (Used in) Financing Activities
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 Year

14

2,793,724(290,427)

9,354,256

12,147,981

12,147,981

11,857,553

(5) Notes for Consolidated Financial Statements(Notes for premise of going concern)
There are no pertinent matters to report.
(Change in presentation method)(Consolidated Statements of Cash Flows)
Beginning from the current consolidated fiscal year, the item “Increase (Decrease) in Consumption Taxes Payable”
included in the “Others” category of Net Cash Provided by (Used in) Operating Activities in the previous consolidated
fiscal year has been stated as a separate item because the material importance of the item has increased. To reflect
this change in the presentation method, (235,545,000) yen that was included in the “Others, Net” category of Net Cash
Provided by (Used in) Operating Activities in the Consolidated Statements of Cash Flows for the previous consolidated
fiscal year has been restated as “Increase (Decrease) in Consumption Taxes Payable” of (52,634,000) yen and “Others,
Net” of (182,911,000) yen.
(Additional information)(Accounting estimates)
The widespread coronavirus pandemic has had a broad impact on the economy and corporate business activities, andhas affected the Tomoe Engineering Group’s business activities as well.
Based on the assumption that circumstances will return to normal gradually beginning from the next consolidated fiscal
year, we have prepared accounting estimates of fixed asset impairment and the potential for recovery of deferred tax
assets.
Because the impact of the coronavirus pandemic on economic activity is highly uncertain, changes in the above
assumptions might affect the Tomoe Engineering Group’s future financial position and business results.
(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 is available
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 theconsolidated financial statements.

15

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, 2019)
Amount of
Adjustment
Note 1

Reporting segment
Machinery &Equipment
Business(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

30,105,547

41,355,790－

41,355,790

Segment Income

971,674

1,404,583

2,376,258－

2,376,258

Segment Assets

9,479,554

16,048,821

25,528,376 13,542,570

39,070,946

266,620

97,574364,194－

364,194503,688

144,440

648,129－

648,129

Sales
Sales to Unaffiliated Customers
Internal Sales Among Segments
or Amount Transferred
Total

Other Items
Depreciation & Amortization
Increase in Property, Plant &Equipment and Intangible Assets(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, 2020)
Amount of
Adjustment
Note 1

Reporting segment
Machinery &Equipment
Business(Thousands of Yen)
Consolidated
Financial
Statements
Reported
AmountChemical
Products
Business

Total

11,553,455

27,664,962

39,218,418－

39,218,418

－

－

－

－

－

11,553,455

27,664,962

39,218,418－

39,218,418

Segment Income

926,426

1,334,208

2,260,635－

2,260,635

Segment Assets

10,172,315

15,180,376

25,352,692 13,085,639

38,438,331

263,644

97,246360,890－360,890259,379

44,254

303,633－

303,633

Sales
Sales to Unaffiliated Customers
Internal Sales Among Segments
or Amount Transferred
Total

Other Items
Depreciation & Amortization
Increase in Property, Plant &Equipment and Intangible Assets(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.

16

(Related information)
Previous 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
Japan4,851,345

Asia
275,708(Thousands of Yen)
Others148,701

Total
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.
Current Consolidated Fiscal Year (Year Ended October 31, 2020)
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 Sales(Thousands of Yen)

Japan

Asia

31,438,039

7,051,510

OthersTotal

728,868

39,218,418(Note) Net sales are classified by country or region based on the customer’s location.
2. Property, Plant and Equipment
Japan

Asia

4,815,210

257,574(Thousands of Yen)
OthersTotal

130,127

5,202,912

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.
(Information concerning impairment losses on fixed assets by reporting segment)
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.

17

(Per Share Information)
Year Ended
October 31, 2019
Net Asset per Share¥2,892.41

Year Ended
October 31, 2020
¥2,973.31

Net Income per Share¥157.25¥153.56(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, 2019Year Ended
October 31, 2020

Net Income for this Fiscal Year (thousands of yen)

1,569,110

1,532,304

Net Income for Common Stock (thousands of yen)

1,569,110

1,532,304

Average number of Common Stock during the Fiscal Year9,978,339

9,978,339(Note3) Calculation basis for net asset per share are as follows:Year Ended
October 31, 2019
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

18

Year Ended
October 31, 2020

28,861,494

29,668,743

28,861,494

29,668,743

9,978,339

9,978,339

4. Other Notes(1) Changes of Officers (effective January 28, 2021)
1) Candidate for Director to be newly appointed (excluding the directors serving as Audit & Supervisory Committee
Members)
Name
Sakae Fujii

New Position

Current Position

Director and Deputy General Manager, Chemical

Administrative Head of Chemical Products Div.

Products Div. (Fine Chemical Dept., Electronic
Materials Dept., and Synthetic Resin Dept.)
Michiaki Sugiura

Director and Deputy General Manager, Machinery &Plant Technical Director, Machinery & Equipment Div.

Equipment Div. (Environmental Equipment Sales
Dept.)

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

New Position

Current Position

Director serving as Audit & Supervisory Committee

Assistant General Manager, Business Support Dept.

Member (Outside Director)

Meiji Yasuda Office Partners Co., Ltd.

3) Director scheduled to retire
Name

Current Position

Yoshihito Homma

Senior Managing Director and General Manager,

Masahiko Nakamura

Director and Deputy General Manager, Machinery &Machinery & Equipment Div.
Equipment Div. (Environmental Equipment Sales
Dept.)
Toshiharu Murase

Director serving as Audit & Supervisory Committee
Member (Outside Director)

4) Director scheduled to be promoted
Name
Akitomo Tamai
Akiyoshi Shinoda

New Position

Current Position

Executive Managing Director and General Manager,

Senior Managing Director and General Manager,

Machinery & Equipment Div.

Chemical Products Div.

Senior Managing Director and General Manager,

Director and Deputy General Manager, Chemical

Chemical Products Div.

Products Div. (Fine Chemical Dept., Electronic
Materials Dept., and Synthetic Resin Dept.)5) Candidate for Substitute Director serving as Audit & Supervisory Committee Member
Name
Minoru Imai

New Position

Current Position

Substitute Director serving as Audit & Supervisory

Certified Tax Accountant

Committee Member (Outside Director)

Outside Director of Kawasaki Geological Engineering
Co., Ltd. (Audit and Supervisory Committee Member)19