Financial Results for the Third Quarter Ended July 31, 2022
[Japan GAAP] (Consolidated)
Date:
Company Name and Code:

September 12, 2022
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, 2022
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, 2022
(1) Results of Operation (Consolidated)(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
Quarter Ended July 31, 2022
32,746
2,230
1.9
2,340
4.7
－
Quarter Ended July 31, 2021
33,416
17.6
2,190
34.6
2,235
35.5

Quarter Ended July 31, 2022
Quarter Ended July 31, 2021

Net Income Attributable to
Owners of the Parent
Millions of
Yen
Percent
1,913
14.5
1,670
55.4

Net Income per Share

Fully Diluted Quarterly
Net Income per ShareYen
191.79167.46

Yen－－(Note) Comprehensive income
Third Quarter ended July 31, 2022: 2,247 million yen (19.5%) Third Quarter ended July 31, 2021: 1,880 million yen (118.3%)(Note) We have applied Accounting Standard for Revenue Recognition (ASBJ Statement No. 29) from the beginning of the consolidated firstquarter, and the figures for the third quarter of the fiscal year ending October 31, 2022, are figures after applying the said accounting standard.
Because a significant impact on net sales arises, the year-on-year percentage change in net sales is not shown.

(2) Financial Condition (Consolidated)
Total Assets (A)(Millions of Yen)
45,281
43,254

Quarter Ended July 31, 2022
Year Ended October 31, 2021
(Reference) Net assets
Third Quarter ended July 31, 2022: 33,589 million yen

Net Assets (B)(Millions of Yen)
33,58931,841Net Assets Ratio(B) / (A) (Percent)
74.2
73.6

Year Ended October 31, 2021: 31,841 million yen

2. Dividend Status(Record Date)
Year Ended October 31, 2021
Year Ending October 31, 2022
Year Ending October 31, 2022
(Prospect)First
Quarter－－Interim
Term
25.00
25.00

Annual Dividend (Yen)Third
End ofQuarter
Fiscal Year
25.00
－
－
28.00

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

Annual
50.00
53.00

3. Forecast for Earnings for the Year Ending October 31, 2022 (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
45,100
3,150
10.8
3,230
11.2
－
Net Income Attributable to Net Income per ShareOwners of the Parent(Millions of Yen) (Percent)
Yen
Full Business Year
2,510
19.0
251.55(Note) Revisions since the most recently released earnings forecast: None
We have applied Accounting Standard for Revenue Recognition from the beginning of the consolidated first quarter, andthe forecasts are based on the said accounting standard. Because a significant impact on net sales arises, the percentagechange against the net sales result for the fiscal year ended October 31, 2021, before application of the said standard, is
not shown.
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 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: 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 Financial
Statements] (Changes in accounting policies) 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 July 31, 2022: 10,533,200 shares
At October 31, 2021: 10,533,200 shares
2) Number of treasury stocks as of quarter-end and year-end
At July 31, 2022: 554,940 shares
At October 31, 2021: 554,911 shares
3) Number of average shares (accumulated quarterly total)
At July 31, 2022: 9,978,272 shares
At July 31, 2021: 9,978,313 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 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......................................................................................................................................6
Quarterly Consolidated Statements of Income.....................................................................................................6
Quarterly 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(Changes in accounting policies) .................................................................................................8(Segment information).........................................................................................................................10

1

1. Qualitative Information on Quarterly Consolidated Operating Results(1) Analysis of Operating Results
During the third quarter of the current consolidated fiscal year, after getting off to a good start at the beginning of thequarter, Japan’s economy leveled off on factors including a resurgence of COVID-19 infections. Recently, however,
economic growth has been positive mainly due to a recovery in personal consumption and an increase in capital
investment. Meanwhile, overseas, although the European economy has maintained momentum for recovery, the U.S.
economy has continued to record negative growth amid tight labor market conditions, and the growth rate in the Chinese
economy has slowed.
Given these circumstances, net sales in the third quarter of the current consolidated fiscal year were 32,746 million yen.
With respect to earnings, against a backdrop of an increase in profits in the Chemical Products Business, operating
income increased 1.9% year on year to 2,230 million yen, ordinary income increased 4.7% year on year to 2,340 million
yen, and, because the Company recorded a profit on sales of noncurrent assets, net income attributable to owners of
the parent increased 14.5% year on year to 1,913 million yen.
The figures for net sales revised due to the effect of the change of the revenue recognition standard decreased 118 million
yen in the Machinery & Equipment Business and 4,979 million yen in the Chemical Products Business respectively.
Operating results by segment were as follows.
(Machinery & Equipment Business)
In the Machinery & Equipment Business, despite growth in net sales of machinery for domestic public sector demand,
net sales of equipment and construction works, and components and repair services were stagnant. Despite growthin net sales of equipment and construction works, and components and repair services for domestic private sector
demand, net sales of machinery and machinery for overseas markets sharply declined, further net sales of components
and repair services remained low.
(Millions of Yen)
Product classification
Machinery
Equipment andComponents
construction
and repair
TOTAL
works
services
July, 2021
313
1,025
2,214
3,553
Public sector (previous standard)July, 2022
562
755
2,134
3,452
(new standard)July, 2022
562
873
2,134
3,570
(previous standard) *July, 2021
533
4
1,386
1,924
Private sector (previous standard)July, 2022
183
88
1,449
1,720
(new standard)July, 2022
183
88
1,449
1,720
(previous standard) *July, 2021
1,837
0
1,909
3,748
Overseas(previous standard)markets
July, 2022
820
0
1,550
2,371
(new standard)July, 2022
821
0
1,550
2,372
(previous standard) *July, 2021
2,685
1,031
5,510
9,226
TOTAL
(previous standard)July, 2022
1,566
843
5,134
7,544
(new standard)July, 2022
1,567
961
5,134
7,663
(previous standard) **For net sales in the consolidated quarter under review, the asterisk mark indicates the figure revised due to theeffect of the change of the revenue recognition standard.
2

With respect to earnings, operating income was 409 million yen, 36.9% down from the same period one year earlier,reflecting lower revenue in the field of components and repair services for domestic public sector demand.
(Chemical Products Business)
In the Chemical Products Business, net sales of materials mainly for building and fireproof in the industrial materials andmineral products sectors, materials for paint and ink applications in the fine chemical products sector, and materials forsemiconductor manufacturing devices in the electronic materials sector, and of all other sectors expanded.
(Millions of Yen)
July, 2021
July, 2022
July, 2022
(previous standard)(new standard)(previous standard) *Synthetic resin sector

6,184

3,887

7,634

Industrial materials sector

3,719

4,484

4,714

Mineral products sector

3,151

3,599

3,600

Chemical products sector

5,204

6,135

6,721

Advanced materials sector

2,715

2,969

3,344

Electronic materials sector

3,016

3,931

3,971

198

194

194

Other products (foreign liquor)

Total
24,18925,20230,181*For net sales in the consolidated quarter under review, the asterisk mark indicates the figure revised due to theeffect of the change of the revenue recognition standard.
With respect to earnings during the period, operating income was 1,821 million yen, 18.1% up from the same period
one year earlier, reflecting strong sales in all sectors.
(2) Analysis of Financial Condition
Total assets as of the end of the consolidated third quarter under review were 45,281 million yen, increased by 2,027
million yen from the end of the previous consolidated fiscal year. This mainly reflected decrease in cash and deposits,
and increases in merchandise and finished goods, and electronically recorded monetary claims.
Liabilities were 11,691 million yen, increased by 279 million yen from the end of the previous consolidated fiscal year,
mainly because of increases in contract liabilities against advances received, and notes and accounts payable-trade,
despite decreases in income taxes payable, and provision for bonuses.
Net assets stood at 33,589 million yen, increased by 1,748 million from the end of the previous consolidated fiscal year.
This mainly reflected increase in retained earnings recorded under quarterly net income attributable to owners of theparent, despite decrease in valuation difference on available-for-sale securities.
As a result of the above changes, the equity ratio at the end of the consolidated third quarter under review stoodat 74.2%, increased by 0.6 point compared with the end of the previous consolidated fiscal year.
(3) Analysis of Future Forecast on Consolidated Earnings Forecast
There are no revisions to the consolidated earnings forecast figures for the fiscal year ending October 31, 2022 asannounced in the “Notice on changes in earnings forecast” released on September 2, 2022.

3

2. Quarterly Consolidated Financial Statement and Notes(1) Quarterly Consolidated Balance Sheets (Third Quarter)(Thousands of Yen)
AssetsEnd of Previous YearEnd of Third Quarter(October. 31, 2021)(July 31, 2022)

Current Assets
Cash and Deposits

12,607,490

10,037,741

Notes and Accounts Receivable-Trade

11,694,334−−

12,905,929

Electronically Recorded Monetary Claims

3,279,411

4,195,736

Merchandise and Finished Goods

3,589,851

5,680,426

Work in Process

1,290,848

1,308,370

Raw Materials and Supplies

743,778

1,169,316

Others263,549

258,272

Allowance for Doubtful Accounts
Total Current Assets-64,455-78,561

33,404,810

35,477,231

5,236,376

5,130,559

Accumulated Depreciation-2,183,281-2,168,926

Buildings and Structures, Net

3,053,095

2,961,632

Machinery, Equipment and Vehicles

3,992,687

4,188,886-3,555,668-3,799,928

437,019

388,957

2,302,076

2,303,477

16,24675,999

1,097,469

1,151,667

Accumulated Depreciation-995,989-1,052,311

Others, Net

101,480

99,3555,909,917

5,829,423

81,07371,899Investment Securities

1,425,438

1,288,107

Guarantee Deposits

402,260

553,212

1,956,842

1,998,561

Deferred Tax Assets

13,50865

Others82,04585,191

Allowance for Doubtful Accounts-21,892-21,992

Total Investments and Other Assets

3,858,203

3,903,146

Total Noncurrent Assets

9,849,194

9,804,469

Total Assets

43,254,004

45,281,700

Notes, Accounts Receivable-Trade and Contract
AssetsNoncurrent 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)
Liabilities and Net Assets

End of Previous YearEnd of Third Quarter(October. 31, 2021)(July 31, 2022)

Liabilities
Current Liabilities
Notes and Accounts Payable-Trade4,208,592

4,865,928

Electronically Recorded Monetary Debt

2,306,052

2,193,281

Accounts Payable-Others

685,729860,288

Income Taxes Payable

775,198

231,227

Advances Received

308,942−−

1,055,216

1,406,031

952,533

Provision for Directors' Bonuses

80,97969,282

Allowance for Product Warranty

363,270

218,283

Others536,079

365,715

10,670,876

10,811,756

Contract Liabilities
Provision for Bonuses

Total Current Liabilities
Noncurrent Liabilities
Provision for Directors' Retirement Benefits

5,460

5,460

Net Defined Benefit Liabilities

67,772

71,155

Deferred Tax Liabilities

668,441803,340

Total Noncurrent Liabilities

741,673

879,955

Total Liabilities

11,412,550

11,691,712

Capital Stock

1,061,210

1,061,210

Capital Surplus

1,483,410

1,483,410

Retained Earnings

28,721,695

30,136,526

Treasury Stock-364,081-364,148

Total Shareholders’ Equity

30,902,234

32,316,997

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

450,885345,723

7,785-10,291

Foreign Currency Translation Adjustment

213,842

704,417

Total Adjustment on Net Defined Benefit

266,705

233,139

Total Accumulated Other Comprehensive Income

939,220

1,272,990

Total Net Assets

31,841,454

33,589,987

Total Liabilities and Net Assets

43,254,004

45,281,700

Net Assets
Shareholders’ Equity5(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, 2021

July 31, 2022

Net Sales

33,416,070

32,746,291

Cost of Sales

25,853,523

24,804,988

7,562,547

7,941,303

5,372,325

5,710,383

2,190,221

2,230,919

Interest Income

1,997

1,546

Dividends Income

31,627

41,628Rent Income

5,488

5,650

Foreign Exchange Gain

6,418

43,963

Others18,81930,04664,352

122,834

Interest Expenses

1,835

2,914

Commission Paid

8,243

8,243

Sales Discount

4,816

−

Others

4,536

2,058

Total Non-Operating Expenses

19,432

13,216

Ordinary Income

2,235,140

2,340,537－

460,722

Profit on Sales of Investment Securities

23,927

1,254

Gain on Liquidation of Affiliated Company

62,996－

Total Extraordinary Profits

86,924

461,976

2,322,065

2,802,514

Income Taxes-Current

596,681671,634

Income Taxes-Deferred

54,383

217,135

Total Income Taxes

651,065888,769

Net Income
Net Income
Attributable to Owners of the Parent

1,670,999

1,913,744

1,670,999

1,913,744

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

Total Non-Operating Income
Non-Operating Expenses

Extraordinary Profits
Profit on Sales of Noncurrent Assets

Income before Income Taxes

6

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

Third Quarter Ended

July 31, 2021

July 31, 2022

1,670,999

1,913,744

113,713-105,162

Deferred Gains or Losses (-) on Hedges

691-18,076

Foreign Currency Translation Adjustment

104,974

490,575

Adjustment on Net Defined Benefit-9,637-33,566

Total Other Comprehensive Income

209,741

333,770

1,880,741

2,247,514

1,880,741

2,247,514

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

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

7

(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 for Revenue Recognition)
We have applied Accounting Standard for Revenue Recognition (ASBJ Statement No. 29; hereinafter referred to as
Accounting Standard for Revenue Recognition) from the beginning of the consolidated first quarter under review, and whencontrol of the promised goods or services is transferred to the customer, we recognize as revenue the amount expected tobe received in exchange for the said goods or services. As a result, for recognition of revenue, mainly the followingchanges have arisen.
1) Performance obligation identification and transaction price allocation
Regarding construction contracts that include machinery sales and construction, we have changed to the method of
allocating transaction prices on the basis of standalone selling prices after recognizing the performance obligations relating
to machinery sales and construction as separate performance obligations, and then recognizing revenue when each of theperformance obligations is satisfied.
2) Revenue recognition for construction contracts
In the past, regarding construction contracts for which the outcomes of the construction activities were deemed certain during
the courses of the activities, we applied the percentage-of-completion method, and for other construction contracts, weapplied the completed-contract method. However, we have changed to the method of recognizing revenue over a
specified period of time as the performance obligations are satisfied. Furthermore, regarding construction for which thepercent complete relating to satisfying the performance obligation cannot reasonably be estimated, we recognize revenue
based on the completed-contract method.
3) Revenue recognition for agent transactions
Regarding transactions for which it is judged that the Company’s performance obligations in the contracts with customers
are agent services to make arrangement for goods or services to be provided by other principals, we record revenue on a
net basis by offsetting net sales to customers that were formerly recorded on a gross basis with the corresponding costs ofsales.
4) Sales discounts
Sales discounts, which we formerly included in non-operating expenses, are deducted from net sales.
Regarding application of Accounting Standard for Revenue Recognition, we comply with the transitional treatmentprescribed in the Article 84 provision of Accounting Standard for Revenue Recognition.

The cumulative effect ofretroactively applying the new accounting policy to periods prior to the beginning of the consolidated first quarter has been
added to or subtracted from the retained earnings at the beginning of the quarter under review, and we apply the new
accounting policy beginning from the relevant balance at the beginning of the period. However, applying the method
prescribed in Article 86 of Accounting Standard for Revenue Recognition, we have not retroactively applied the new
accounting policy to contracts for which almost all the revenue amounts were recognized in compliance with the priortreatment until before the beginning of the consolidated first quarter under review.

8As a result, in the third quarter of the current consolidated fiscal year, net sales decreased by 5,098,496,000 yen, cost of
sales decreased by 5,091,889 yen, operating income decreased by 6,607,000 yen respectively, and ordinary income andincome before income taxes and minority interests increased by 168,000 yen respectively.
Because we applied Accounting Standard for Revenue Recognition, the notes and accounts receivable-trade that wereshown under current assets in the consolidated balance sheet for the previous consolidated fiscal year are shown included
in notes and accounts receivable - trade, and contract assets beginning from the consolidated first quarter. Furthermore,in compliance with the transitional treatment prescribed in Article 89-2 of Accounting Standard for Revenue Recognition, forthe previous consolidated fiscal year, we have not performed a restatement by using the new presentation method.
(Application of Accounting Standard for Fair Value Measurement)
We have applied Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30; hereinafter referred to as
Accounting Standard for Fair Value Measurement) from the beginning of the consolidated first quarter, and in compliancewith the transitional treatment prescribed in Article 19 of Accounting Standard for Fair Value Measurement and Article 44-2
of Accounting Standard for Financial Instruments (ASBJ Statement No. 10), we will in the future apply the new accounting
policy prescribed by Accounting Standard for Fair Value Measurement. Furthermore, there is no effect on the quarterly
consolidated financial statements.

9

(Segment Information, etc.)[Segment Information]
I
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
Machinery & Equipment
Business

Chemical Products
Business

9,226,753

Total

Grand Total

24,189,316

33,416,070

33,416,070

－

－

－

－

Total

9,226,753

24,189,316

33,416,070

33,416,070

Segment Profit

648,089

1,542,131

2,190,221

2,190,221

Net Sales
Net Sales to UnaffiliatedCustomers
Internal Net Sales among
Segments or AmountTransferred(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, 2022
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

7,544,189

Total

Grand Total

25,202,102

32,746,291

32,746,291

－

－

－

－

Total

7,544,189

25,202,102

32,746,291

32,746,291

Segment Profit

409,011

1,821,907

2,230,919

2,230,919

Net Sales
Net Sales to UnaffiliatedCustomers
Internal Net Sales among
Segments or AmountTransferred(Note) The total amount of segment profit is identical to the operating income reported on the Quarterly Consolidated Statements of Income.

10