Financial Results for the Second Quarter Ended April 30, 2015
[Japan GAAP] (Consolidated)
Date:

June 3, 2015

Company Name and Code:

Tomoe Engineering Co., Ltd. and Subsidiaries - 6309
(URL: http://www.tomo-e.co.jp/index_e.html)
stStock exchange listing:

1 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 to report Quarterly Consolidated Financial Statement: June 12, 2015
Date for Dividend Payment:

July 6, 2015

Preparation of Supplementary Explanatory Materials for Quarterly Operating Results: Yes
Briefing Session for Quarterly Operating Results: Yes (for institutional investors)* Any fractional sums less than one million (or one thousand) yen are disregarded
1. Consolidated Financial Data for the Second Quarter Ended April 30, 2015
(1) Results of Operation (Consolidated)

Quarter Ended April 30, 2015
Quarter Ended April 30, 2014

(Percent: Change from the same quarter of the previous year)
Net Sales
Operating Income
Ordinary Income
Millions ofMillions ofMillions of
Yen
Percent
Yen
Percent
Yen
Percent
20,086
0.6
934
10.5
1,161
13.4
19,957
3.0
846
-15.2
1,024
-4.8
Net Income

Quarter Ended April 30, 2015
Quarter Ended April 30, 2014

Millions of
Yen
923
774

Percent
19.2
22.6

Net Income per Share

Fully Diluted Quarterly
Net Income per Share

Yen
50
92.
61
77.

Yen
-

(Note) Comprehensive income
Second Quarter ended April 30, 2015: 1,175 million yen (40.2%)

Second Quarter ended April 30, 2014: 838 million yen (-24.2%)(2) Financial Condition (Consolidated)

Quarter Ended April 30, 2015
Year Ended October 31, 2014

Total Assets (A)(Millions of Yen)
34,07433,817

Net Assets (B)(Millions of Yen)
25,361
23,943

Net Assets Ratio(B) / (A) (Percent)
74.4
70.8

(Reference) Net assets
Second Quarter ended April 30, 2015: 25,361 million yen

Year Ended October 31, 2014: 23,943 million yen

2. Dividend Status(Record Date)
Year Ended October 31, 2014
Year Ending October 31, 2015
Year Ending October 31, 2015 (Prospect)First
Quarter-Interim
Term
50
22.
50
22.

Annual Dividend (Yen)Third
End ofQuarter
Fiscal Year
50
22.

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

-

50

22.

Annual
00

45.

00

45.

3. Forecast for Earnings for the Year Ending October 31, 2015 (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 Year40,370
-0.8
1,280
0.5
1,500
-7.9
Net Income
Net Income per Share(Millions of Yen) (Percent)
Yen
Full Business Year
1,030
-6.6
103.22(Note) Revisions since the most recently released dividend projection: None
Notes(1) Significant changes in subsidiaries during this period (changes in specific subsidiaries involving changes in thescope of consolidation): None
Number of new subsidiaries: __(Company names):
Number of eliminated subsidiaries: __(Company names):(2) Adoption of simplified accounting method and the specific accounting method: None
(3) Changes of the principles, procedures, and representation of the accounting policies
1) Change due to revision of accounting standard: Existing2) Other changes than the above 1): None
3) Change in accounting estimates: None
4) Retrospective restatements: None
For more information, please refer to the supporting data on page 4, (3) Changes in accounting principles,changes in accounting estimates and retrospective restatements(4) Number of outstanding shares (Common stock)1) Number of outstanding shares as of quarter-end and year-end (including treasury stocks)
At April 30, 2015: 10,533,200 shares

At October 31, 2014: 10,533,200 shares

2) Number of treasury stocks as of quarter-end and year-end
At April 30, 2015: 554,667 shares

At October 31, 2014: 554,667 shares

3) Number of average shares (accumulated quarterly total)
At April 30, 2015: 9,978,533 shares

At April 30, 2014: 9,978,599 shares*Disclosure concerning status of implementation of quarterly review procedure
This quarterly earnings report is exempt from the quarterly review procedure based on the Financial Instruments
and Exchange Act. At the time of disclosure of this quarterly earnings report, the Company has not completed aquarterly review procedure based on the Financial Instruments and Exchange Act.
*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 Financial Results for the Quarter (Attachments) on page 3,(3) [Analysis of Future Forecast on 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. Matters Concerning Summary Information (Notes)...........................................................................................4(1) Changes to material subsidiaries during the consolidated cumulative second quarter..................4(2) Application of special accounting method in the preparation of quarterly consolidated financial
statements......................................................................................................................................4(3) Changes in accounting principles, changes in accounting estimates and retrospective restatements...4(4) Additional Information..............................................................................................................................4
3. Quarterly Consolidated Financial Statement...........................................................................................................5(1) Quarterly Consolidated Balance Sheet. ................................................................................................5(2) Quarterly Consolidated Statements of Income & Quarterly Consolidated Statements of Comprehensive
Income...................................................................................................................................... 7
Quarterly Consolidated Statements of Income.....................................................................................................7
Quarterly Consolidated Statements of Comprehensive Income.........................................................................8(3) Quarterly Consolidated Statements of Cash Flows………………………………………………..9(4) Notes for Quarterly Consolidated Financial Statements……………………………………………………..11(Note for premise of going concern)……………………………………………………………...11(Notes for significant changes in shareholder’s equity)…………………………………………...11(Segment information) ………………………………………………………………………………...11
4. Overseas Net Sales (Supplemental Information)...................................................................................................121

1. Qualitative Information on Quarterly Consolidated Operating Results(1) Analysis of Operating Results
During the consolidated second quarter under review, Japan’s economy maintained a gradual recovery trend thatwas driven by several factors, including a rising trend in capital investment supported by an improvement ofcorporate earnings, and a brisk movement in personal consumption against the backdrop of an improved householdincome and employment. Nevertheless, even as the U.S. economy maintained its recovery trend, conditions
overseas that made it impossible to banish concerns of an economic slowdown lingered. In addition to theweakness in growth evident in the economies of newly developing countries including China, negative factors
included the adverse effects of a slump in crude oil prices and the Greek debt problem in Europe.
Given these circumstances, in the Machinery & Equipment Business domestic sales were lower, but net sales ofmachinery, components and repair services for overseas expanded, centered on North America. In the Chemical
Products Business, net sales for the domestic plastics sector and fine chemicals sector lacked strength, but net
sales in the industrial materials sector and electronics materials sector, as well as of products such as commodity
plastics in Hong Kong, all remained strong. In terms of earnings during the period, profits were lower in theChemical Products Business, primarily because of the deterioration in earning in the resin plastic compounding
business in Shenzhen, China, but in the Machinery & Equipment Business, profits rose as sales of machinery andcomponents and repair services in the highly profitable overseas increased market, particularly in North America. In
addition, a gain on sales of investment securities and other assets was reported in extraordinary income, and taxes
decreased as a result of the revaluation of deferred tax assets and liabilities in conjunction with the reduction of thenormal effective statutory tax rate as part of the fiscal 2015 tax reform.
As a result of the above, consolidated net sales for the year-to-date period rose 0.6% from the same period last year
to 20,086 million yen. Operating income was 934 million yen, 10.5% up from the same period of the prior year,
ordinary income was 1,161 million yen, 13.4% up from the same period of the prior year, and net income was 923
million yen, 19.2% up from the same period one year earlier.
Operating results by segment were as follows.
(Machinery & Equipment Business)
In the Machinery & Equipment Business, consolidated net sales for the year-to-date period were 5,070 million yen,
0.7% up from the same period last year. Net sales of machinery, equipment and works, and components andrepair services for domestic market were lower, but net sales of machinery and components and repair services foroverseas markets centered on North America increased. From an earnings aspect, because net sales for theentire business were pushed higher by the growth in net sales of machinery and component and repair services forhigh-margin overseas markets, particularly in North America, operating income was 421 million yen, 40.9% up fromthe same period of the prior year
(Chemical Products Business)
In the Chemical Products Business, sales in the plastics sector and the fine chemicals sector for the domestic
market decreased. On the other hand, sales in the industrial materials sector for additive for use in aluminum alloy,
and housing and construction applications, sales in the electronics materials sector of transport trays forsemiconductor manufacturing applications, and sales of commodity plastics in Hong Kong remained strong. As aresult, consolidated net sales for the year-to-date period were 15,016 million yen, 0.6% up from the same period one
year ago.
With respect to earnings during the period, operating income was 513 million yen, 6.2% down from the same period
one year earlier. Factors behind this performance included the impact from lower sales in the plastics sector andfine chemicals sector, and a contraction in profits in the plastic compounding business in Shenzhen, China thatreflected a decrease in sales.
2(2) Analysis of Financial Condition[1] Assets, Liabilities, and Net Assets
Total assets as of the end of the consolidated second quarter under review were 34,074 million yen, up 0.8% or 256
million yen from the end of the previous consolidated fiscal year. This mainly reflected a reduction of 1,630 million
yen in notes and accounts receivable–trade, among other changes, and an increase of 881 million yen in cash anddeposits, an increase of 368 million yen in inventory, and an increase of 757 million yen in asset for retirement
benefits.
Liabilities were 8,712 million yen, down 11.8% or 1,161 million yen from the end of the previous consolidated fiscal
year, mainly because of a decrease of 444 million yen in notes and accounts payable-trade, a decrease of 323
million yen in advances received, and a decrease of 252 million yen in income tax payable.
Net assets stood at 25,361 million yen, 1,417 million yen or 5.9% up from the end of the previous consolidated fiscal
year. This mainly reflected an increase of 1,164 million yen in retained earnings.
As a result of the above changes, the equity ratio at the end of the consolidated second quarter under review
rose by 3.6 point compared with the end of the previous consolidated fiscal year to 74.4%.
[2] Cash Flow Status
Cash and cash equivalents as of the end of the consolidated second quarter under review increased by 181 million
yen to 5,843 million yen from the end of the previous consolidated fiscal year. The status of each consolidated cash
flow and their factors during the second quarter are as follows:(Net Cash Provided by (Used in) Operating Activities)
Net cash provided in operating activities was 973 million yen (increased in cash flow provided by 173 million yen
from the same consolidated quarter of the previous year). Income before income taxes and minority interests was
1,247 million yen, and notes and accounts receivable-trade decreased by 1,544 million yen, notes and accounts
payable-trade decreased by 386 million yen, and advances received decreased by 364 million yen.
(Net Cash Provided by (Used in) Investing Activities)
Net cash used in investing activities was 781 million yen (decrease in cash flow used by 1,678 million yen from thesame consolidated quarter of the previous year), mainly for the disbursements to time deposits and the difference
from refund of 700 million yen.
(Net Cash Provided by (Used in) Financing Activities)
Net cash used in financing activities was 224 million yen (decrease in cash flow used by 600 million yen from thesame consolidated quarter of the previous year) for the payment of cash dividends of 224 million yen.
(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, 2015that were announced in the “Announcement of Amendment to Earning Forecast” released on May 29, 2015.

3

2. Matters Concerning Summary Information (Notes)(1) Changes to material subsidiaries during the consolidated cumulative second quarter:
There are no pertinent matters to report. However at the Board of Directors meeting held on February 27, 2015,
Interstella Plastics (Shenzhen) Co., Ltd., a specified subsidiary, approved a resolution to dissolve and is currently inliquidation.
(2) Application of special accounting method in the preparation of quarterly consolidated financial statements:
There are no pertinent matters to report.
(3) Changes in accounting principles, changes in accounting estimates and retrospective restatements:(Application of the Accounting Standard for Retirement Benefits)
Beginning from the first quarter consolidated accounting period, the Company has applied the AccountingStandard for Retirement Benefits (Accounting Standards Board of Japan (ASBJ) Statement No. 26, referred to below
as “the Retirement Benefit Accounting Standard”) and the Implementation Guidance on Accounting Standard for
Retirement Benefits (ASBJ Guidance No. 25, referred to below as “the Retirement Benefits Implementation
Guidance”) under the provisions in the main clauses of Article 35 of the Accounting Standard for Retirement
Benefits and Article 67 of the Guidance on Accounting Standard for Retirement Benefits. The Company has
revised its calculation methods for retirement benefit obligations and service costs, and together with changing
its method for attributing projected retirement benefits to periods from the straight-line basis to the benefit
formula basis, also has revised its method for determining the discount rate, from a method based on thenumber of years approximate to the expected average remaining working lives of employees, to a method thatuses a single weighted average discount rate reflecting the estimated retirement benefit payment periods andamount per each estimated retirement benefit payment period.
To apply the Accounting Standard for Retirement Benefits, the Company has recognized the effect of thisrevision to its calculation methods for retirement benefit obligations and service costs by adjusting the balanceof retained earnings at the beginning of second quarter consolidated accounting period, in accordance with thetransitional provisions set forth in paragraph 37 of the Accounting Standard for Retirement Benefits.
As a result, net defined benefit assets increased by ¥725,010,000 yen, and retained earnings increased by¥466,457,000 yen, as of the beginning of the second quarter consolidated accounting period. The effect of thischange on second quarter consolidated accounting period earnings is not material.
(4) Additional information(Effect of revisions to the corporate tax rate)
With the promulgation of the Act for Partial Revision of the Local Tax Act (Act No. 2 of 2015) and the Act for Partial
Revision of the Income Tax Act Etc. (Act No. 9 of 2015) on March 31, 2015, Japan’s corporate tax rate and businesstax rate will be reduced in the consolidated fiscal year beginning on or after April 1, 2015. In conjunction with thischange, the statutory effective tax rate used to calculate deferred tax assets and deferred tax liabilities will be revised
from 35.64% applied in the past to 33.06% for temporary differences expected to be eliminated in the consolidated
fiscal year that begins on November 1, 2015, and to 32.30% for temporary differences expected to be eliminated in
the consolidated fiscal years that begin from November 1, 2016.
As a result, deferred tax liabilities (the amount after deducting deferred tax assets) have been reduced by
122,279,000 yen. In addition, income taxes-deferred have been reduced by 111,110,000 yen.

4

3. Quarterly Consolidated Financial Statement(1) Quarterly Consolidated Balance Sheets (Second Quarter)(Thousands of Yen)
End of Previous YearEnd of Second Quarter(October. 31, 2014)(April 30, 2015)

AssetsCurrent Assets
Cash and Deposits

5,661,622

6,543,179

Notes and Accounts Receivable-Trade

14,321,437

12,690,968

Merchandise and Finished Goods

2,834,556

3,004,857

Work in Process

1,193,440

1,290,074

Raw Materials and Supplies

772,969875,004

Deferred Tax Assets

579,233

432,773

Others225,244

213,247-5,251-3,63225,583,252

25,046,474

2,742,339

4,496,578

Accumulated Depreciation-1,533,884-1,589,057

Buildings and Structures, Net

1,208,455

2,907,520

Machinery, Equipment and Vehicles

4,045,863

4,129,728-3,346,731-3,470,308

699,131659,420

930,711

1,938,587

Construction in progress

2,581,210

500

Others1,102,854

1,123,425

Accumulated Depreciation-977,538-999,596

Others, Net

125,316

123,8295,544,824

5,629,858

451,969

412,931

Investment Securities

1,255,543

1,272,199

Guarantee Deposits

243,293

256,538

Net Defined Benefit Assets

596,943

1,354,224

Deferred Tax Assets

36,616-

Others

128,527

124,674

Allowance for Doubtful Accounts-22,995-22,709

Total Investments and Other Assets

2,237,928

2,984,927

Total Noncurrent Assets

8,234,723

9,027,716

Total Assets

33,817,976

34,074,190

Allowance for Doubtful Accounts
Total Current Assets
Noncurrent Assets
Property, Plant and Equipment
Buildings and Structures

Accumulated Depreciation
Machinery, Equipment and Vehicles, Net
Land

Total Property, Plant and Equipment
Intangible Assets
Investments and Other Assets5

(Thousands of Yen)
End of Previous YearEnd of Second Quarter(October. 31, 2014)(April 30, 2015)

Liabilities and Net Assets
Liabilities
Current Liabilities

5,970,933

5,526,280

Accounts Payable-Others

535,396585,393

Income Taxes Payable

543,046

290,435

Advances Received

431,020

107,068

Provision for Bonuses

731,676

605,979

Provision for Directors' Bonuses

36,90023,639Allowance for Product Warranty

223,618

130,245

Others

305,463

200,3818,778,056

7,469,424

Noncurrent Liabilities
Provision for Directors' Retirement Benefits

18,6805,460

Net Defined Benefit Liabilities

48,64658,142

1,028,769

1,179,547

Total Noncurrent Liabilities

1,096,096

1,243,150

Total Liabilities

9,874,153

8,712,574

Capital Stock

1,061,210

1,061,210

Capital Surplus

1,483,410
21,267,920

1,483,410
22,432,905-363,591-363,591

Total Shareholders’ Equity

23,448,949

24,613,934

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

305,484

393,210

1,272

-76

Foreign Currency Translation Adjustment

311,609480,241

Total Adjustment on Net Defined Benefit-123,493-125,692

Total Accumulated Other Comprehensive Income

494,873

747,681

Total Net Assets

23,943,822

25,361,616

Total Liabilities and Net Assets

33,817,976

34,074,190

Notes and Accounts Payable-Trade

Total Current Liabilities

Deferred Tax Liabilities

Net Assets
Shareholders’ Equity

Retained Earnings
Treasury Stock6

(2) Quarterly Consolidated Statements of Income & Quarterly Consolidated Statements of Comprehensive
IncomeQuarterly Consolidated Statements of Income (Second Quarter)(Thousands of Yen)
Second Quarter Ended

Second Quarter Ended

April 30, 2014

April 30, 2015

Net Sales

19,957,177

20,086,760

Cost of Sales

15,928,366

15,891,770

4,028,811

4,194,989

3,182,628

3,260,339

846,183

934,650

Interest Income

9,459

8,615

Dividends Income

108,677

10,457

Rent Income

4,820

3,516

Foreign Exchange Gains

48,403

197,408

Others25,727

21,605

197,088

241,603

Interest Expenses

4,795

758

Commission Paid

7,963

7,987

Sales Discount

2,946

2,993

Others

3,074

2,968

Total Non-Operating Expenses

18,77914,709Ordinary Income

1,024,492

1,161,544

Gain on Sales of Noncurrent Assets-

27,208Gain on Sales of Investment Securities-

58,703

145,132-

145,132

85,911

Loss on Retirement of Noncurrent Assets

5,991

-

Loss on of Sales Noncurrent Assets

2,034

-

8,026

-

1,161,597

1,247,456

Income Taxes-Current

357,290274,921

Income Taxes-Deferred

37,91949,491

395,210324,412766,387

923,043-8,089-774,476

923,043

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

Total Non-Operating Income
Non-Operating Expenses

Extraordinary Income

Gain on Negative Goodwill
Total Extraordinary Income
Extraordinary Expenses

Total Extraordinary Expenses
Income before Income Taxes and Minority Interests

Total Income Taxes
Income before Minority Interests
Minority Interests in Income or Loss (-)
Net Income

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

Second Quarter Ended

April 30, 2014

April 30, 2015

766,387

923,043-13,275

87,725

Deferred Gains or Losses (-) on Hedges-410-1,349Foreign Currency Translation Adjustment

86,228

168,631--2,19972,542

252,808

838,930

1,175,852

836,033

1,175,852

2,896

-

Income before Minority Interests
Other Comprehensive Income
Valuation Difference on Available-for-sale Securities

Net Defined Benefit
Total Other Comprehensive Income
Comprehensive Income(Breakdown)Comprehensive Income attributable to Owners of the
ParentComprehensive Income attributable to Minority
Interests8

(3) Quarterly Consolidated Statements of Cash Flows(Thousands of Yen)
Second Quarter Ended

Second Quarter Ended

April 30, 2014

April 30, 2015

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

1,161,597

1,247,456

Depreciation and Amortization

195,325

216,113

Increase (Decrease) in Provision for Bonuses(53,017)(128,041)

Increase (Decrease) in Provision for Directors' Bonuses(10,431)(13,260)

Increase (Decrease) in Allowance for Product Warranty
Increase (Decrease) in Provision for Retirement Benefits(57,525)
6,465(93,373)

Increase (Decrease) in Net Defined Benefit Liability

－

8,959

Decrease (Increase ) in Prepaid Pension Expense(55,283)－

Decrease (Increase ) in Net Defined Benefit Asset－(32,270)

Increase (Decrease) in Provision for Directors' Retirement Benefits－(13,220)(4,460)(1,905)(118,136)(19,073)

4,795

758
(29,471)

Loss (Gain) on Sales of Investment Securities(18,596)－

Gain (Loss) on Negative Goodwill

145,132－

Loss (Gain) on Sales of Noncurrent Assets

2,034(27,208)

Loss on Retirement of Noncurrent Assets

5,991

－

(7,172)

1,544,809

Decrease (Increase) in Inventories

172,484(369,661)

Increase (Decrease) in Notes and Accounts Payable-Trade(473,092)(386,799)

2,398

66,311

Increase (Decrease) in Advances Received

140,771(364,336)

Increase (Decrease) in Accrued Consumption Taxes(15,659)(84,079)

Others, Net(64,243)

26,742

669,111

1,489,747

Interests and Dividends Income Received

121,295

20,317

Interest Expenses Paid

(5,219)(766)

Income Taxes Returned (Paid)

14,691(536,109)

799,879

973,189

Increase (Decrease) in Allowance for Doubtful Accounts
Interests and Dividends Income
Interest Expenses
Foreign Exchange Losses (Gains)

Decrease (Increase) in Notes and Accounts
Receivable-Trade

Increase (Decrease) in Accounts Payable-Others

Sub total

Net Cash Provided by (Used in) Operating Activities

9－(58,703)

(Thousands of Yen)
Second Quarter Ended

Second Quarter Ended

April 30, 2014

April 30, 2015

Net Cash Provided by (Used in) Investment Activities
Disbursement to Time Deposits(4,300,000)(1,500,000)

Proceeds from Withdrawal of Time Deposits

2,400,000

800,000

Purchase of Property, Plant and Equipment(388,387)(229,331)－

29,862

Purchase of Intangible Fixed Assets(113,726)(25,364)

Purchase of Investment Securities(7,323)(8,135)－

156,049

Payments of Loans Receivable(2,190)(1,710)

Collection of Loans Receivable

1,026

2,269

Guarantee Deposits (Increase)

2,248(4,449)(52,469)(1,150)(2,460,823)(781,962)(238,955)－

Repayments of Lease Obligations

(775)

－

Repayment of Long-Term Loans(56,534)－

Purchase of Stock from Minority Shareholders(79,894)

－

(128)

－

(449,037)(224,516)(825,326)(224,516)

98,280(2,387,989)

214,847
181,557

7,171,846

5,661,622

4,783,856

5,843,179

Proceeds from Sales of Property, Plant and Equipment

Proceeds from Sales of Investment Securities

Others, Net
Net Cash Provided by (Used in) Investment Activities
Net Cash Provided by (Used in) Financing Activities
Net Increase (Decrease) in Short-Term Loans Payable

Purchase 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 Quarter10(4) Notes on Quarterly Consolidated Financial Statements(Note for premise of going concern)
There are no pertinent matters to report.
(Notes for significant changes in shareholder’s equity)
There are no pertinent matters to report.
(Segment Information, etc.)
Second Quarter Ended April 30, 2014
1 Information Pertaining to the Amount of Net Sales or Net Loss of Each Reporting Segment(Thousands of Yen)
Reported Segment
Machinery & Equipment
Business

Chemical Products
Business

5,034,130

14,923,047

19,957,177

19,957,177

-

-

-

-

5,034,130

14,923,047

19,957,177

19,957,177

299,170547,012846,183

846,183

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

Total

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

2 Information Concerning Impairment Loss on Noncurrent Assets, Goodwill, and Other Items by Reporting Segment(Material gain on negative goodwill)
The Tomoe Engineering Group had a gain on negative goodwill in the Chemical Products Business in conjunction withthe acquisition of the stock of Interstella Co., Ltd., a consolidated subsidiary of Tomoe Engineering, which was owned
by another company. The reported amount of the gain on negative goodwill in the consolidated Second Quarter
under review as a result of this acquisition was 145,132,000 yen.

Second Quarter Ended April 30, 2015
1 Information Pertaining to the Amount of Net Sales or Net Loss of Each Reporting Segment(Thousands of Yen)
Reported Segment

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

Machinery & Equipment
Business

Chemical Products
Business

5,070,004

15,016,756

20,086,760

20,086,760

-

-

-

-

5,070,004

15,016,756

20,086,760

20,086,760

421,472

513,178

934,650

934,650

Total

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

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4. Overseas Net Sales (Supplemental Information)
Second Quarter Ended April 30, 2014

(Thousands of Yen)
Asia

I. Overseas Net Sales

Total

2,677,356

476,629

3,153,985--

19,957,177

13.4

2.4

15.8

II. Consolidated Net Sales
III. Ratio of Overseas Net Sales to Consolidated Net Sales (%)

Other Regions(Notes)1. Areas including countries or regions are determined based on their degree of geographical proximity.
2. Main countries or regions included in the areas:(1) Asia: China, Korea, Taiwan and Indonesia(2) Other regions: America and Europe
3. Overseas net sales are sales of our company and subsidiaries made in countries and regions other than Japan.
Second Quarter Ended April 30, 2015

(Thousands of Yen)
Asia

I. Overseas Net Sales
II. Consolidated Net Sales
III. Ratio of Overseas Net Sales to Consolidated Net Sales (%)

Other Regions

Total

2,351,833

1,417,527

3,769,360--

20,086,760

11.7

7.1

18.8

(Notes)1. Areas including countries or regions are determined based on their degree of geographical proximity.
2. Main countries or regions included in the areas:(1) Asia: China, Korea, Taiwan and Indonesia(2) Other regions: America and Europe
3. Overseas net sales are sales of our company and subsidiaries made in countries and regions other than Japan.

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