Financial Results for the Third Quarter Ended July 31, 2021
[Japan GAAP] (Consolidated)
Date:

September 10, 2021

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 to report Quarterly Consolidated Financial Statement: September 14, 2021
Date for Dividend Payment:

Not applicable to this financial quarter

Preparation of Supplementary Explanatory Materials for Quarterly Operating Results: Not prepared
Briefing Session for Quarterly Operating Results: Not planned* Any fractional sums less than one million (or one thousand) yen are disregarded
1. Consolidated Financial Data for the Third Quarter Ended July 31, 2021
(1) Results of Operation (Consolidated)

Quarter Ended July 31, 2021
Quarter Ended July 31, 2020

(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
33,416
17.6
2,190
34.6
2,235
35.5
28,424-8.8
1,627-12.0
1,649
-12.2

Quarter Ended July 31, 2021
Quarter Ended July 31, 2020

Net Income Attributable toOwners of the Parent
Millions ofYen
Percent
1,670
55.4
1,075
-15.2

Net Income per Share

Fully Diluted Quarterly
Net Income per ShareYen
167.46107.74

Yen－－(Note) Comprehensive income
Third Quarter ended July 31, 2021: 1,880 million yen (118.3%)

Third Quarter ended July 31, 2020: 861 million yen (-20.9%)(2) Financial Condition (Consolidated)

Quarter Ended July 31, 2021
Year Ended October 31, 2020

Total Assets (A)(Millions of Yen)
41,22538,438Net Assets (B)(Millions of Yen)
31,05529,668Net Assets Ratio(B) / (A) (Percent)
75.3
77.2

(Reference) Net assets
Third Quarter ended July 31, 2021: 31,055 million yen

Year Ended October 31, 2020: 29,668 million yen

2. Dividend Status(Record Date)
Year Ended October 31, 2020
Year Ending October 31, 2021
Year Ending October 31, 2021(Prospect)FirstQuarter－－Interim
Term
23.50
25.00

Annual Dividend (Yen)Third
End ofQuarter
Fiscal Year
24.50
－－
25.00

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

Annual48.00
50.00

3. Forecast for Earnings for the Year Ending October 31, 2021 (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 Year
45,000
14.7
2,800
23.9
2,830
23.3
Net Income Attributable to Net Income per ShareOwners of the Parent(Millions of Yen) (Percent)
YenFull Business Year
2,13039.0
213.46(Note) Revisions since the most recently released earnings forecast: YesNotes(1) Significant changes in subsidiaries during this period (changes in specific subsidiaries involving changes in thescope of consolidation): Yes
Number of new subsidiaries: 1 (Company names): TOMOE Trading (Malaysia) Sdn. Bhd.
Number of eliminated subsidiaries: 1 (Company names): TOMOE Engineering (Shanghai) Co., Ltd.
(2) Adoption of the specific accounting method to create quarterly consolidated financial statements: None
(3) Changes in accounting policies, accounting estimates, and retrospective restatements.
1) Change in accounting policies due to revision of accounting standard: None
2) Other changes than the above 1): None
3) Change in accounting estimates: None
4) Retrospective restatements: None
(4) Number of outstanding shares (Common stock)1) Number of outstanding shares as of quarter-end and year-end (including treasury stocks)
At July 31, 2021: 10,533,200 shares

At October 31, 2020: 10,533,200 shares

2) Number of treasury stocks as of quarter-end and year-end
At July 31, 2021: 554,911 sharesAt October 31, 2020: 554,861 shares

3) Number of average shares (accumulated quarterly total)
At July 31, 2021: 9,978,313 shares

At July 31, 2020: 9,978,339 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 Financial Results for the Quarter (Attachments) on page 3, (3) [Analysis of Future Forecast onConsolidated Earnings Forecast] of 1. [Qualitative Information on Quarterly Consolidated Operating Results] for theoperating results forecast.

Table of Contents (Supporting Data)
1. Qualitative Information on Quarterly Consolidated Operating Results...................................................................2(1) Analysis of Operating Results................................................................................................................................2(2) Analysis of Financial Condition..............................................................................................................................3(3) Analysis of Future Forecast on Consolidated Earnings Forecast.......................................................3
2. Quarterly Consolidated Financial Statement and Notes.................................................................................................4(1) Quarterly Consolidated Balance Sheet. ................................................................................................4(2) Quarterly Consolidated Statements of Income & Quarterly Consolidated Statements of Comprehensive
Income......................................................................................................................................6Quarterly Consolidated Statements of Income.....................................................................................................6Quarterly Consolidated Statements of Comprehensive Income.........................................................................7(3) Notes on Quarterly Consolidated Financial Statements………………………………………………………8(Note for premise of going concern)…………………………………………………………………..……8(Notes for significant changes in shareholder’s equity)………………………………………….…………… 8(Segment information) ………………………………………………………………………………………... 81

1. Qualitative Information on Quarterly Consolidated Operating Results(1) Analysis of Operating Results
During the third quarter consolidated period under review, Japan’s economy enjoyed a solid start at the beginning of
the fiscal year, recovering from the coronavirus pandemic, but growth turned negative at the beginning of the year.
However, growth turned positive in recent months reflecting increases in personal consumption, capital investment,and exports that maintained a steady pace. Overseas, China’s economy and the US economy both remained
brisk, and Europe’s economy also maintained a solid growth.
Given these circumstances, net sales for the Tomoe Engineering Group for the consolidated third quarter
increased 17.6% from the same period last year to 33,416 million yen because of increased sales in both theMachinery & Equipment Business and the Chemical Products Business. From an earnings aspect, operating
income was 2,190 million yen, 34.6% up from the same period last year because of higher revenue in both theMachinery & Equipment Business and the Chemical Products Business, while ordinary income came to 2,235
million yen, 35.5% up from the same period last year. Net income attributable to owners of the parent was 1,670
million yen, 55.4% up from the same period last year, mainly reflecting a gain on sale of a consolidated subsidiary inChina.
Operating results by segment were as follows.
(Machinery & Equipment Business)
In the Machinery & Equipment Business, consolidated cumulative net sales for the last three quarters were 9,226
million yen, 24.0% up from the same period last year. Despite sluggish growth in net sales of machinery fordomestic public sector demand, and equipment and construction works for domestic private sector demand, net
sales of machinery for domestic private sector demand, and machinery for overseas markets, particularly for China,
and components and repair services for all fields rose higher.
(Millions of Yen)
ProductMachinery
Equipment and Components
classification
construction
and repair
TOTAL
worksservices
July, 2021

313

1,025

2,214

3,553

July, 2020

465

1,018

2,005

3,489

Difference

-151

7208

64

July, 2021

533

4

1,386

1,924

July, 2020

450

120

1,347

1,918

Difference

82-11638

5July, 2021

1,837

0

1,909

3,748

Overseas

July, 2020

554

0

1,476

2,031

markets

Difference

1,283

0

432

1,716

July, 2021

2,685

1,031

5,510

9,226

July, 2020

1,470

1,139

4,829

7,440

Difference

1,214

-108

680

1,786

Public sector

Private sector

TOTAL

With respect to earnings, operating income was 648 million yen, 11.3% up from the same period one year earlier,reflecting higher revenue in the field of components and repair services which had high margins.

2(Chemical Products Business)
In the Chemical Products Business, net sales clearly recovered centered on the motor vehicles sector which wasaffected severely by the coronavirus pandemic during the second half of last year. Furthermore, net sales of resinand products for domestic and overseas markets in the synthetic resin sector, materials for motor vehicles andconstruction applications in the industrial materials sector, and materials and additives for UV curing resin and paintand ink applications in the chemical products sector all increased. As a result, consolidated cumulative net sales forthe last three quarters were 24,189 million yen, 15.3% up from the same period one year ago.
(Millions of Yen)
July, 2020

July, 2021

Difference

Synthetic resin sector

4,858

6,184

1,325

Industrial materials sector

6,075

6,870

794

Chemical products sector

4,500

5,204

703

Advanced materials sector

2,517

2,715

197

Electronic materials sector

2,829

3,016

186

201

198

-3

20,98424,1893,204

Other products (foreign liquor)
Total

With respect to earnings, operating income was 1,542 million yen, 47.6% up from the same period of the prior year,
reflecting higher revenue in the field of industrial materials sector and chemical products sector which had highmargins.
(2) Analysis of Financial Condition
Total assets as of the end of the consolidated third quarter under review were 41,225 million yen, increased by 2,786
million yen from the end of the previous consolidated fiscal year. This mainly reflected decreases in work in process,and raw materials and supplies, and increases in cash and deposits, electronically recorded monetary claims, andmerchandise and finished goods.
Liabilities were 10,169 million yen, increased by 1,400 million yen from the end of the previous consolidated fiscal year,
mainly because of increases in notes and accounts payable-trade, and advances received, despite a decrease inprovision for bonuses.
Net assets stood at 31,055 million yen, increased by 1,386 million from the end of the previous consolidated fiscalyear. This mainly reflected an increase in retained earnings recorded under quarterly net income attributable toowners of the parent, despite a decrease in total adjustment on net defined benefit.
As a result of the above changes, the equity ratio at the end of the consolidated third quarter under review stoodat 75.3%, decreased by 1.9 point compared with the end of the previous consolidated fiscal year.
(3) Analysis of Future Forecast on Consolidated Earnings Forecast
The consolidated earnings forecast figures for the fiscal year ended October 31, 2021 were announced in the “Noticeon changes in earnings forecast” released on September 10, 2021.

3

2. Quarterly Consolidated Financial Statement and Notes(1) Quarterly Consolidated Balance Sheets (Third Quarter)(Thousands of Yen)
End of Previous YearEnd of Third Quarter(October. 31, 2020)(July 31, 2021)

AssetsCurrent Assets
Cash and Deposits

11,857,553

13,383,077

Notes and Accounts Receivable-Trade

10,400,639

10,733,420

Electronically Recorded Monetary Claims

2,131,545

3,022,573

Merchandise and Finished Goods

2,605,708

3,311,156

Work in Process

1,684,070

1,114,442

Raw Materials and Supplies

1,066,944

861,871

Others253,335

246,550

Allowance for Doubtful Accounts
Total Current Assets-60,767-63,590

29,939,029

32,609,503

4,722,504

4,749,971

Accumulated Depreciation-2,026,932-2,146,142

Buildings and Structures, Net

2,695,571

2,603,828

Machinery, Equipment and Vehicles

3,826,069

3,960,288-3,360,809-3,518,615

465,260

441,672

1,930,580

1,930,895－

85,5001,071,431

1,092,506

Accumulated Depreciation-959,930-981,449

Others, Net

111,500

111,057

5,202,912

5,172,954

128,516

88,862

Investment Securities

1,227,085

1,380,861

Guarantee Deposits

398,405

401,659

1,473,503

1,513,968

Deferred Tax Assets

12,143

1,467

Others

79,027

77,929Allowance for Doubtful Accounts-22,291-22,071

Total Investments and Other Assets

3,167,873

3,353,815

Total Noncurrent Assets

8,499,302

8,615,632

Total Assets

38,438,331

41,225,135

Noncurrent Assets
Property, Plant and Equipment
Buildings and Structures

Accumulated Depreciation
Machinery, Equipment and Vehicles, Net
Land
Construction in progress
OthersTotal Property, Plant and Equipment
Intangible Assets
Investments and Other Assets

Net Defined Benefit Assets4

(Thousands of Yen)
End of Previous YearEnd of Third Quarter(October. 31, 2020)(July 31, 2021)

Liabilities and Net Assets
Liabilities
Current Liabilities
Notes and Accounts Payable-Trade3,004,198

4,045,748

Electronically Recorded Monetary Debt

2,150,419

1,994,300

Accounts Payable-Others

621,692

670,003

Income Taxes Payable

179,968

348,318

Advances Received

201,993

485,923

Provision for Bonuses

1,231,975

894,240

Provision for Directors' Bonuses

61,55558,248

Allowance for Product Warranty

236,423

361,908

Others397,235

557,699

8,085,462

9,416,390

Total Current Liabilities
Noncurrent Liabilities
Provision for Directors' Retirement Benefits

5,460

5,460

Net Defined Benefit Liabilities

71,21965,736

Deferred Tax Liabilities

607,445

682,095

Total Noncurrent Liabilities

684,124753,291

Total Liabilities

8,769,587

10,169,681

Capital Stock

1,061,210

1,061,210

Capital Surplus

1,483,410

1,483,410

Retained Earnings

27,107,252

28,284,325-363,977-364,081

Total Shareholders’ Equity

29,287,895

30,464,864

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

307,456

421,169-1,566-875

Foreign Currency Translation Adjustment

92,854

197,828

Total Adjustment on Net Defined Benefit-17,896-27,533

Total Accumulated Other Comprehensive Income

380,848590,589

Total Net Assets

29,668,743

31,055,453

Total Liabilities and Net Assets

38,438,331

41,225,135

Net Assets
Shareholders’ Equity

Treasury Stock5(2) Quarterly Consolidated Statements of Income & Quarterly Consolidated Statements of Comprehensive
IncomeQuarterly Consolidated Statements of Income (Third Quarter)(Thousands of Yen)
Third Quarter Ended

Third Quarter Ended

July 31, 2020

July 31, 2021

Net Sales

28,424,603

33,416,070

Cost of Sales

21,783,810

25,853,523

6,640,792

7,562,547

5,013,301

5,372,325

1,627,491

2,190,221Interest Income

2,278

1,997

Dividends Income

31,54031,627

Rent Income

5,378

5,488

－

6,418

25,605

18,81964,80264,352

Interest Expenses

6,005

1,835

Commission Paid

8,252

8,243

Sales Discount

4,701

4,816

Foreign Exchange Losses

18,887－Others

5,364

4,536

Total Non-Operating Expenses

43,211

19,432

Ordinary Income

1,649,082

2,235,140

Profit on Sales of Investment Securities－23,927

Gain on Liquidation of Affiliated Company－

62,996

Total Extraordinary Profits－

86,924

1,861

－

1,861

－

1,647,221

2,322,065

Income Taxes-Current

292,903596,681

Income Taxes-Deferred

279,20954,383

Total Income Taxes

572,113651,065

Net Income
Net Income
Attributable to Owners of the Parent

1,075,108

1,670,999

1,075,108

1,670,999

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

Foreign Exchange GainOthers
Total Non-Operating IncomeNon-Operating Expenses

Extraordinary Profits

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

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

Third Quarter Ended

July 31, 2020

July 31, 2021

1,075,108

1,670,999-204,354

113,713

Deferred Gains or Losses (-) on Hedges-1,360691

Foreign Currency Translation Adjustment

6,001

104,974

Adjustment on Net Defined Benefit-13,752-9,637

Total Other Comprehensive Income-213,465

209,741

861,642

1,880,741

861,642

1,880,741

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

Comprehensive Income(Breakdown)Comprehensive Income Attributableto Owners of the Parent7

(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.
(Segment Information, etc.)[Segment Information]
I Third Quarter Ended July 31, 2020
Information Pertaining to the Amount of Net Sales or Net Loss of Each Reporting Segment(Thousands of Yen)
Reported Segment

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

Machinery & Equipment
Business

Chemical Products
Business

7,440,245

Total

Grand Total

20,984,358

28,424,603

28,424,603－－－－

7,440,245

20,984,358

28,424,603

28,424,603

582,3811,045,110

1,627,491

1,627,491(Note) The total amount of segment profit is identical to the operating income reported on the Quarterly Consolidated Statements of Income.

II Third Quarter Ended July 31, 2021
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

9,226,753

Total

Grand Total

24,189,316

33,416,070

33,416,070－－－－

9,226,753

24,189,316

33,416,070

33,416,070

648,089

1,542,131

2,190,221

2,190,221(Note) The total amount of segment profit is identical to the operating income reported on the Quarterly Consolidated Statements of Income.

8