Financial Results for the Fiscal Year Ended October 31, 2022
[Japan GAAP] (Consolidated)
Date:

December 14, 2022

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 27, 2022
Date of Dividend Payment:

January 30, 2022

Date of Financial Statement: January 27, 2022
Preparation of Supplementary Explanatory Materials for Annual Operating Results: Yes
Briefing Session for Annual Operating Results: Yes (for analysts and institutional investors)* Any fractional sums less than one million (or one thousand) yen are disregarded
1. Consolidated Financial Results for the Year Ended October 31, 2022
(1) Results of Operation (Consolidated)
Net Sales(Millions of Yen)

(Percent: change from the previous year)
Operating Income
Ordinary Income(Percent)(Millions of Yen)

Year Ended
October 31, 2022
45,5883,299
Year Ended
October 31, 2021
45,13215.1
2,843(Note) Comprehensive income
Fiscal year ended October 31, 2022: 3,045 million yen (14.2%)
Fiscal year ended October 31, 2021: 2,666 million yen (109.0%)
Net Income Attributableto Owners of the Parent(Millions of Yen)

(Percent)(Percent)(Millions of Yen)

(Percent)

16.0

3,421

17.8

25.8

2,905

26.6

Net
Income per
Share

Fully Diluted Net
Income per
Share

Return on
EquityReturn on
AssetsReturn on
Sales

(Yen)

(Yen)

(Percent)(Percent)(Percent)

Year Ended
October 31, 2022
2,659
26.1
266.538.0
7.7
7.2
Year Ended
October 31, 2021
2,108
37.6
211.30
6.9
7.1
6.3(Reference) Equity in earnings (loss) of unconsolidated subsidiaries and affiliates
Fiscal year ended October 31, 2022: None
Fiscal year ended October 31, 2021: None
(Note) We have applied Accounting Standard for Revenue Recognition (ASBJ Statement No. 29) such from the beginning of the
fiscal year ending October 31, 2022, and the figures for 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)Net Assets (B)Net Assets Ratio (B / A)

Net Assets per Share(Millions of Yen)

(Millions of Yen)

(Percent)

(Yen)

75.2

3,446.27

73.6

3,191.07

Year Ended
October 31, 2022
45,742
34,387
Year Ended
October 31, 2021
43,254
31,841(Reference) Net assets
Fiscal year ended October 31, 2022: 34,387 million yen
Fiscal year ended October 31, 2021: 31,841 million yen

(3) Cash Flows (Consolidated)
Net Cash Provided(Used) by Operating
Activities
Year Ended
October 31, 2022
(1,739)Year Ended
October 31, 2021
2,142

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

60

(498)

10,732

(977)

(494)

12,607

2. Dividend Status
Dividend per Share (Yen)
SecondEnd ofThird Quarter
Quarter
Fiscal Year
25.00
25.00
00
25.
28.00
00
28.
28.00

First Quarter
Year Ending October 31, 2021
Year Ending October 31, 2022
Year Ending October 31, 2023 (Prospect)

-

Total
50.00
53.00
56.00

Total Dividend

Dividend Payout Ratio(Consolidated)

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

(Percent)(Percent)

498
528

23.7
19.9
27.4

1.6
1.6

Year Ending October 31, 2021
Year Ending October 31, 2022
Year Ending October 31, 2023 (Prospect)

3. Forecast for the Year Ending October 31, 2023 (Consolidated)(Percent: Change from the previous year for the full business year and 6-month period)
Sales
Operating Income
Ordinary Income
Full Business Year

(Millions of Yen)

(Percent)(Millions of Yen)

(Percent)(Millions of Yen)

(Percent)

47,380

3.9

2,940

-10.9

2,970

-13.2

Net Income Attributable to
Owners of the Parent
Full Business YearNet Income per Share(Millions of Yen)

(Percent)

(Yen)

2,040

-23.3

204.44Notes(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) Changes in accounting principles, changes in accounting estimates, and retrospective restatements
1) Changes in accounting principles due to revision of accounting standard: Yes
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, 2022: 10,533,200 shares
At October 31, 2021: 10,533,200 shares
2) Number of treasury stocks at year-end
At October 31, 2022: 554,940 shares
At October 31, 2021: 554,911 shares
3) Number of average shares
At October 31, 2022: 9,978,269 shares
At October 31, 2021: 9,978,307 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 2022 and 2023………………………………….......6
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(Changes in accounting policies) ................................................................................................. 15(Change in presentation method)………………………………………………………………………………... 16(Segment information)……………………………………………………………………………………………... 16(Per Share information)………………………………………………………….…………………………………19(Significant subsequent events)………………………………………………………………………………….19
4 Other Notes…………………………………………………………….………………………………………………....20(1) Changes of Officers (effective January 27, 2023)………………………………………………………………...20

1

1. Overview of Operating Results(1) Overview Concerning Current Operating Results
During the consolidated fiscal year under review, after getting off to a good start at the beginning of the year, Japan’s
economy leveled off on factors including a resurgence of COVID-19 infections. Later, although the economy
temporarily recovered, it recently has shifted to negative growth mainly due to sluggish personal consumption andincreased imports. On the other hand, overseas, the U.S. economy remained strong despite a slowdown, the Chinese
economy is on a decelerating trend because of lockdowns, and the European economy’s growth rate has slowed.
Given these circumstances, full-year net sales for the Tomoe Engineering Group were 45,588 million yen. With
respect to earnings during the period, operating income was 3,299 million yen, 16.0% up from the previous consolidated
fiscal year because of higher income in the Chemical Products Business, while ordinary income came to 3,421 million
yen, 17.8% up from the previous consolidated fiscal year. Net income attributable to owners of the parent was 2,659
million yen, 26.1% up from the previous consolidated fiscal year reflecting a gain derived from sales of noncurrent assets.
The figures for net sales revised due to the effect of the change of the revenue recognition standard decreased 6,743
million yen in the Chemical Products Business and 20 million yen in the Machinery & Equipment Business respectively.
Operating results by segment were as follows.
(Machinery & Equipment Business)
In the Machinery and 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 declined. Net salesof machinery for domestic private sector demand were stagnant, despite steady growth in net sales of equipment andconstruction works, and components and repair services. Net sales of machinery for overseas markets sharply
declined and net sales of components and repair services also remained low.
(Millions of Yen)
Product classification
Machinery
Equipment andComponents
construction
and repair
TOTAL
works
services
October, 2021
710
1,419
2,686
4,815
Public sector (previous standard)
October, 2022
884
995
2,643
4,523
(new standard)
October, 2022
887
1,009
2,643
4,540
(previous standard) *October, 2021
669
4
2,044
2,719
Private sector (previous standard)
October, 2022
562
129
2,201
2,892
(new standard)
October, 2022
563
129
2,201
2,894
(previous standard) *October, 2021
2,167
0
2,619
4,787
Overseas(previous standard)markets
October, 2022
1,595
0
2,344
3,939
(new standard)
October, 2022
1,598
0
2,344
3,942
(previous standard) *October, 2021
3,547
1,424
7,350
12,322TOTAL(previous standard)
October, 2022
3,042
1,124
7,189
11,356(new standard)
October, 2022
3,049
1,138
7,189
11,377(previous standard) **For net sales in the fiscal year under review, the asterisk mark indicates the figure revised due to the effect of thechange of the revenue recognition standard.
With respect to earnings, operating income increased 1.9% year on year to 903 million yen mainly because theprofitability of machinery and components and repair services for the domestic public sector improved.

2

(Chemical Products Business)
In the Chemical Products Business, net sales of materials mainly for building and fireproof in the industrial materials
and mineral products sectors, materials for paint and ink applications in the fine chemical products sector, andmaterials for semiconductor manufacturing devices in the electronic materials sector, and of all other sectors
expanded.
October, 2021
(previous standard)(Millions of Yen)
October, 2022
(previous standard) *October, 2022
(new standard)

Synthetic resin sector

8,430

5,274

10,439Industrial materials sector

5,011

5,996

6,265

Mineral products sector

4,257

4,907

4,908

Chemical products sector

7,106

8,142

8,930

Advanced materials sector

3,643

4,207

4,645

Electronic materials sector

4,095

5,451

5,535

265

252

252

32,80934,232

40,976

Other products (foreign liquor)
Total*For net sales in the fiscal year under review, the asterisk mark indicates the figure revised due to the effect of thechange of the revenue recognition standard.
With respect to earnings, operating income was 2,396 million yen, 22.5% up from the previous fiscal year because
of increased gross-profit margin in all sectors.
(2) Overview Concerning Current Financial Condition
Current assets at the end of the consolidated fiscal year were 35,980 million yen, up 2,575 million from the balanceat the end of the previous consolidated fiscal year, reflecting increase in merchandise and finished goods, despite
decrease in cash and deposits. Noncurrent assets decreased 87 million yen from the end of the previous fiscal
year to 9,762 million yen mainly because guarantee deposits increased but investment securities decreased.
Liabilities decreased 58 million yen from the end of the previous consolidated fiscal year to 11,354 million yen mainly
because notes and accounts payable-trade and provision for bonuses increased but allowance for product warranty,
deferred tax liabilities, and electronically recorded monetary debt decreased.
Net assets stood at 34,387 million yen, up 2,546 million yen from the end of the previous consolidated fiscal
year. This mainly reflected increase in retained earnings recorded under net income attributable to ownersof the parent reported at the current consolidated net income.
As a result of the above changes, the equity ratio at the end of the consolidated fiscal year increased by 1.6
point to 75.2% from 73.6% 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 1,874 million
yen from the end of the previous consolidated fiscal year to 10,732 million yen, reflecting expenditures for both
operating and financing activities, despite positive cash flow provided by investment 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 used in operating activities was 1,739 million yen. This was because, although there was an increase in
cash mainly due to income before income taxes and minority interests of 3,885 million yen and cash retention fromdepreciation and amortization of 376 million yen, the decrease in funds resulting from an increase in inventories of
2,405 million yen and an increase in notes, accounts receivable-trade and contract assets of 1,529 million yen, as
well as from payment of income taxes of 1,201 million yen, was larger. Net cash used was 1,739 million yen, as
compared to 2,142 million yen provided in the previous consolidated fiscal year.
(Net Cash Provided by (Used in) Investing Activities)
Net cash provided by investing activities in the consolidated fiscal year under review was 60 million yen. This
reflected the increase in cash resulting from sales of property, plant and equipment of 496 million yen, despite 240
million yen cash used in purchase of property, plant and equipment and an increase in guarantee deposits of 150
million yen. Furthermore, in comparison to the cash outflow of 977 million yen in the previous consolidated fiscal
year, there was a cash inflow of 60 million yen. Net cash provided was 60 million yen as compared to 977 million
yen used in the previous consolidated fiscal year.
(Net Cash Provided by (Used in) Financing Activities)
Net cash used in financing activities was 498 million yen mainly for the payment of cash dividends in 498 million yen. Net
cash used was increased by 4 million yen as compared to 493 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,
2018

Year Ended
October 31,
2019

Year Ended
October 31,
2020

Year Ended
October 31,
2021

Year Ended
October 31,
2022

74.7

73.9

77.2

73.6

75.2

58.3

60.3

50.4

52.5

51.5

Debt-repayment to Cash
Flow Ratio (Years)

0.0

0.0

0.1

0.0

－

Interest Coverage Ratio(Percent)

68.9

114.8

93.0

884.0

－

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.

6.

The debt-repayment to cash flow ratio and interest coverage ratio for the fiscal year ended October 31,
2022, are not stated because of negative operating cash.

4(4) Outlook for the Next Fiscal Year (November 1, 2022 - October 31, 2023)
In the consolidated fiscal year ending October 31, 2023, Japan’s economy is expected to face an uncertain situation
on factors including reduced automobile production due to the global semiconductor shortage, shortages of raw
materials and components, soaring resource and energy prices, rising logistics costs, inflation concerns and rising
U.S. interest rates, sharp exchange rate fluctuations, prolongation of the Russia-Ukraine war, and China’s zeroCOVID policy. In addition, overseas, due to this sort of backdrop, the European and Chinese economies are
expected to continue slowing down.
The fiscal year ending October 31, 2023, is the first year of Tomoe Engineering’s 13th medium-term business plan,
For Sustainable Future (November 2022—October 2025). To achieve the targets and realize further growth, theCompany will move forward with various undertakings. In the Machinery & Equipment Business, it will press ahead
with expanding its overseas business by, for example, not only working to increase profitability through promotion of
production system reform but also working to strengthen its sales activities in the Chinese market and sales
capabilities in the U.S. market and developing new markets. Furthermore, the Company will promote approaches
for the Sustainable Development Goals (SDGs) and decarbonization mainly by entering the renewable energy
sector by, for example, proceeding with development of binary power generation equipment. We estimate that
consolidated net sales will increase 19.8% year on year to 13,610 million yen. As for operating profit, since theCompany expects selling, general and administrative expenses (SG&A) to increase mainly due to research anddevelopment of AI control systems and binary power generation equipment, which will both contribute to future
growth, it expects operating profit to decrease 2.6% year on year to 880 million yen. In the Chemical Products
Business, Tomoe Engineering will focus not only on expanding its business in Southeast Asia, which centers on its
Thai subsidiary, but on expanding into and locating new suppliers in various countries in Europe, where the Czech
Republic is its base. In addition, it will pursue product development relating to such fields as the renewable energy
sector, including wind power generation as an approach for the SDGs and decarbonization, and the field of electricvehicles and the power semiconductors that support them. We estimate that consolidated net sales will decrease
1.4% year on year to 33,770 million yen. Regarding operating profit, since the Company expects SG&A relating tobusiness development, which contributes to future growth and was curbed in the previous fiscal year, to increase, it
expects operating profit to decrease 14.1% year on year to 2,060 million yen.
As a result of these efforts, for the entire Tomoe Engineering Group in the consolidated fiscal year ending October 31,
2023, we project net sales of 47,380 million yen 3.9% up from the previous fiscal year, operating income to decrease by
10.9% to 2,940 million yen, ordinary income to decrease by 13.2% to 2,970 million yen, and net income attributable tothe shareholders of the parent company to decrease by 23.3% to 2,040 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(5) Basic Policy for Profit Sharing and Dividends for Fiscal 2022 and 2023
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 28.0 yen per share increased by 3.0 yen per share fromthe previous consolidated fiscal year (annual dividend of 53.0 yen) at the end of the consolidated fiscal year endingon October 31, 2022, considering of our financial position and operating results for this fiscal year and the outlook
in future.
We also plan to pay annual dividend of 56.0 yen per share (including interim dividend of 28.0 yen) at the end of
the consolidated fiscal year ending on October 31, 2023, to return the profit to stockholders, considering of our
financial position and operating results for the consolidated fiscal year and outlook in future.

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, 2021

Year Ended October 31, 2022

Cash and Deposits

12,607,490

10,732,583

Notes and Accounts Receivable-Trade

11,694,334−−

13,297,252

Electronically Recorded Monetary Claims

3,279,411

3,466,717

Merchandise and Finished Goods

3,589,851

5,839,927

Work in Process

1,290,848

1,282,752

Raw Materials and Supplies

743,778

1,120,659

Others263,549

323,406

Allowance for Doubtful Accounts
Total Current Assets-64,455-83,122

33,404,810

35,980,178

5,236,376

5,144,878

Accumulated Depreciation-2,183,281-2,209,570

Buildings and Structures, Net

3,053,095

2,935,308

Machinery, Equipment and Vehicles

3,992,687

4,298,347-3,555,668-3,820,079

437,019478,268

2,302,076

2,304,010

16,246

17,347

1,097,469

1,139,081

Accumulated Depreciation-995,989-1,049,820

Others, Net

101,480

89,261

5,909,917

5,824,196

81,07386,835Investment Securities

1,425,438

1,306,889

Guarantee Deposits

402,260

563,224

1,956,842

1,908,244

AssetsCurrent Assets

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 Assets
Deferred Tax Assets
OthersAllowance for Doubtful Accounts

13,5086,291

82,045-21,892

88,304-21,892

Total Investments and Other Assets

3,858,203

3,851,061

Total Noncurrent Assets

9,849,194

9,762,093

Total Assets

43,254,004

45,742,272

7

(Thousands of Yen)
Year Ended October 31, 2021

Year Ended October 31, 2022

Notes and Accounts Payable-Trade4,208,592

4,582,839

Electronically Recorded Monetary Debt

2,306,052

2,238,380

Accounts Payable-Others

685,729744,644

Income Taxes Payable

775,198

769,585

Advances Received

308,942−−

291,848

1,406,031

1,507,631

Provision for Directors' Bonuses

80,979103,889

Allowance for Product Warranty

363,270

200,287

Others536,079

236,306

10,670,876

10,675,412

5,460

5,460

Net Defined Benefit Liabilities

67,772

74,120

Deferred Tax Liabilities

668,441

599,474

Total Noncurrent Liabilities

741,673

679,055

Total Liabilities

11,412,550

11,354,468

Capital Stock

1,061,210

1,061,210

Capital Surplus

1,483,410

1,483,410

Retained Earnings

28,721,695

30,882,276-364,081-364,148

30,902,234

33,062,747

450,885362,745

7,785
213,842

11,637801,149

266,705

149,523

939,220

1,325,056

Total Net Assets

31,841,454

34,387,804

Total Liabilities and Net Assets

43,254,004

45,742,272

Liabilities and Net Assets
Liabilities
Current Liabilities

Contract Liabilities
Provision for Bonuses

Total Current Liabilities
Noncurrent Liabilities
Provision for Directors' Retirement Benefits

Net Assets
Shareholders’ Equity

Treasury Stock
Total Shareholders’ Equity
Accumulated Other Comprehensive Income
Valuation Difference on Available-for-Sale
Securities
Deferred Gains or Losses on Hedges
Foreign Currency Translation Adjustment
Total Adjustment on Net Defined Benefit
Total Accumulated Other Comprehensive Income8(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive
IncomeConsolidated Statements of Income(Thousands of Yen)
Year Ended October 31, 2021

Year Ended October 31, 2022

Net Sales

45,132,616

45,588,955

Cost of Sales

35,017,477

34,495,083

Gross Profit

10,115,138

11,093,872

Selling, General and Administrative Expenses

7,271,456

7,794,015

Operating Income

2,843,681

3,299,857

Interest income

2,526

2,898

Dividends Income

33,95144,330Rent Income

7,407

7,641

Foreign Exchange Gain

5,775

41,347

Others34,646

42,79384,308139,011

Interest Expenses

2,423

5,024

Commission Paid

9,000

9,000

Guarantee Commission

2,181

1,816

Sales Discount

6,423

－

Others

2,740

1,145

Total Non-Operating Expenses

22,76916,985

Ordinary Income

2,905,220

3,421,883－

460,715

Profit on Sales of Investment Securities

23,927

6,772

Gain on Liquidation of Affiliated Company

62,996－

Total Extraordinary Profits

86,924

467,488

－
－

4,368

Income before Income Taxes

2,992,144

3,885,003

Income Taxes-Current

1,002,048

1,198,064

Income Taxes-Deferred-118,272

27,444

Non-Operating Income

Total Non-Operating Income
Non-Operating Expenses

Extraordinary Profits
Profit on Sales of Noncurrent Assets

Extraordinary Losses
Loss on Retirement of Noncurrent Assets
Total Extraordinary Losses

4,368

Total Income Taxes

883,775

1,225,509

Net Income
Net Income Attributable to
Owners of the Parent

2,108,369

2,659,494

2,108,369

2,659,494

9

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

Year Ended October 31,

2021

2022
2,108,369

2,659,494

143,429-88,140

9,352

3,852

Foreign Currency Translation Adjustment

120,987

587,307

Adjustment on Net Defined Benefit

284,602-117,182

Total Other Comprehensive Income

558,371385,836

Comprehensive Income

2,666,741

3,045,330(Breakdown)Comprehensive Income Attributable to Owners of the
Parent2,666,741

3,045,330

Net Income
Other Comprehensive Income
Valuation Difference on Available-for-sale Securities
Deferred Gains or Losses on Hedges

10(3) Consolidated Statements of Changes in Shareholders' Equity
Previous Consolidated Fiscal Year (Year Ended October 31, 2021)(Thousands of Yen)
Shareholders' Equity
CommonStock
Surplus during Previous
Fiscal Year
Changes during This
Fiscal Year
Cash Dividend Paid
Net Income Attributable to
Owners of the Parent
Acquisition of Treasury
Stock
Total (Net) Amount
Changed (Except
Shareholders' Equity)
Total Amount Changed
Surplus during This Fiscal
Year

CapitalSurplus1,061,210

Retained
Earnings

1,483,410

27,107,252

Issued Shares
Reacquired-363,977

Total Net
Assets29,287,895-493,926-493,926

2,108,369

2,108,369
-104

-104

－

－

1,614,443-104

1,614,338

1,061,210

1,483,410

28,721,695-364,081

30,902,234

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
Acquisition of Treasury
Stock
Total (Net) Amount
Changed (Except
Shareholders' Equity)
Total Amount Changed
Surplus during This
Fiscal Year

307,456

Deferred
Gains or
Losses on
Hedges-1,566

Foreign
Currency
Translation
Adjustment

92,854

Total Net
DefinedBenefit-17,896

Total Other
Comprehensiv
e Income

380,848

Total Net
Assets

29,668,743-493,926
2,108,369-104

143,429

9,352

120,987

284,602558,371558,371

143,429

9,352

120,987

284,602558,371

2,172,710

450,885

7,785

213,842

266,705

939,220

31,841,454

11

Current Consolidated Fiscal Year (Year Ended October 31, 2022)(Thousands of Yen)
Shareholders' Equity
CommonStock
Surplus during Previous
Fiscal Year
Changes during This
Fiscal Year
Cash Dividend Paid
Net Income Attributable to
Owners of the Parent
Acquisition of Treasury
Stock
Total (Net) Amount
Changed (Except
Shareholders' Equity)
Total Amount Changed
Surplus during This Fiscal
Year

CapitalSurplus1,061,210

Retained
Earnings

1,483,410

28,721,695

Issued Shares
Reacquired-364,081

Total Net
Assets30,902,234-498,913-498,913

2,659,494

2,659,494
-66

-66

－

－

2,160,580-66

2,160,513

1,061,210

1,483,410

30,882,276-364,148

33,062,747

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
Acquisition of Treasury
Stock
Total (Net) Amount
Changed (Except
Shareholders' Equity)
Total Amount Changed
Surplus during This
Fiscal Year

450,885

Deferred
Gains or
Losses on
Hedges7,785

Foreign
Currency
Translation
Adjustment

213,842

Total Net
DefinedBenefit266,705

Total Other
Comprehensiv
e Income

939,220

Total Net
Assets31,841,454-498,913
2,659,494-66-88,140

3,852

587,307-117,182

385,836

385,836-88,140

3,852

587,307-117,182

385,8362,546,349

362,745

11,637801,149

149,523

1,325,056

34,387,804

12

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

October 31, 2021

October 31, 2022

Net Cash Provided by (Used in) Operating Activities
2,992,144

3,885,003

Depreciation and Amortization

381,053

376,133

Increase (Decrease) in Provision for Bonuses

173,525

97,204

Increase (Decrease) in Provision for Directors' Bonuses

19,42422,910

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

126,846(162,983)(3,446)

6,348

Decrease (Increase ) in Net Defined Benefit Asset(46,703)(55,794)

(186)

159

(36,478)(47,229)

Interest Expenses

2,423

5,024

Foreign Exchange Losses (Gains)

4,283(76,347)

Loss (Gain) on Sales of Investment Securities(23,927)(6,772)

Loss (Gain) on Liquidation of Affiliated Company(62,996)－(2,330,535)－－(1,529,064)

Decrease (Increase) in Inventories(212,962)(2,405,711)

Increase (Decrease) in Notes and Accounts Payable-Trade

1,287,448

123,878

Loss (Gain) on Sales of Noncurrent Assets－(460,715)

Loss on Retirement of Noncurrent Assets

－

4,368

Increase (Decrease) in Accounts Payable-Others

47,72869,382

Increase (Decrease) in Advances Received

104,809－－(22,116)

Increase (Decrease) in Unpaid Consumption Tax

97,343(355,681)

Others, Net

28,609(47,543)2,548,406(579,545)

36,48346,354

Income before Income Taxes and Minority Interests

Increase (Decrease) in Allowance for Doubtful Accounts
Interests and Dividends Income

Decrease (Increase) in Notes and Accounts ReceivableTrade
Decrease (Increase) in Notes, Accounts Receivable-Tradeand Contract Assets

Increase (Decrease) in Contract Liabilities

Sub totalInterests and Dividends Income Received
Interest Expenses Paid
Income Taxes Paid
Net Cash Provided by (Used in) Operating Activities

13(2,423)(5,024)(439,615)(1,201,371)

2,142,851(1,739,586)

(Thousands of Yen)
Year EndedYear Ended

October 31, 2021

October 31, 2022

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

Proceeds from Withdrawal of Time Deposits

8,000,000

8,000,000

Purchase of Property, Plant and Equipment(1,003,970)(240,384)

Proceeds from Sales of Property, Plant and Equipment

9,265

496,002

Purchase of Intangible Fixed Assets(6,883)(39,571)

Purchase of Investment Securities(19,752)(14,591)

Proceeds from Sales of Investment Securities

47,88912,484

Payments of Loans Receivable(4,615)(1,080)

Collection of Loans Receivable

2,510

970

Guarantee Deposits (Increase)(1,278)(150,253)(342)(3,095)(977,177)

60,480

(104)

(66)

(493,926)(498,913)(494,030)(498,980)

78,294

303,179

Others, Net
Net Cash Provided by (Used in) Investment Activities
Net Cash Provided by (Used in) Financing Activities
Acquisition 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

749,936(1,874,906)

11,857,553

12,607,490

Cash and Cash Equivalents at End of This Fiscal Year

12,607,490

10,732,583

14

(5) Notes for Consolidated Financial Statements(Notes for premise of going concern)
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 fiscal year under review, andwhen control of the promised goods or services is transferred to the customer, we recognize as revenue the amount
expected to be received in exchange for the said goods or services. As a result, for recognition of revenue, mainly thefollowing changes 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 wheneach of the performance 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, we applied 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 the percent 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 of sales.
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 fiscal year has been
added to or subtracted from the retained earnings at the beginning of the consolidated fiscal year under review, and weapply 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 withthe prior treatment until before the beginning of the consolidated fiscal year under review.
As a result, in the current consolidated fiscal year, net sales decreased 6,764,426,000 yen, cost of sales decreased
6,763,285,000 yen, operating income decreased 1,141,000 yen, and ordinary income and income before income taxes
and minority interests increased 9,066,000 yen.

15

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 fiscal year. In
addition, the advances received that were shown under current assets are shown included in contract liabilities.
Increase (decrease) in notes and accounts receivable-trade, which was shown in net cash provided by (used in)operating activities in the consolidated statement of cash flows for the previous consolidated fiscal year, is shown
included in increase (decrease) in notes, accounts receivable-trade and contract assets from the consolidated fiscal year
under review, and increase (decrease) in advances received is shown included in increase (decrease) in contract
liabilities. Furthermore, in compliance with the transitional treatment prescribed in Article 89-2 of Accounting Standard
for Revenue Recognition, for the previous consolidated fiscal year, we have not performed a restatement by using thenew 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 fiscal year under review, andin compliance with 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 noeffect on the consolidated financial statements.
(Change in presentation method)(Consolidated statements of income)Since guarantee commission, which has been included in others under non-operating expenses in the previous
consolidated fiscal year increased in quantitative materiality, we present it separately beginning from the consolidated
fiscal year under review. To reflect this change of presentation method, in the Consolidated Statements of Income forthe previous consolidated fiscal year, we have reclassified the 4,921,000 yen shown in others under non-operating
expenses as 2,181,000 yen in guarantee commission and 2,740, 000 yen in others.
(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.

16

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, 2021)
Amount of
Adjustment
Note 1

Reporting segment
Machinery &Equipment
Business
Sales
Sales to Unaffiliated Customers
Internal Sales Among Segments
or Amount Transferred
Total
Segment Income(Thousands of Yen)
Consolidated
Financial
Statements
Reported
AmountChemical
Products
Business

Total

12,322,687

32,809,928

45,132,616－

45,132,616

－

－

－

－

－

12,322,687

32,809,928

45,132,616－

45,132,616

886,670

1,957,011

2,843,681－

2,843,681

Segment Assets
9,754,839
19,465,236
29,220,075 14,033,929
43,254,004
Other Items
295,162
85,891
381,053－
381,053
Depreciation & Amortization
Increase in Property, Plant &496,977
525,946
1,022,924－
1,022,924
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 Statementof Income.
Current Consolidated Fiscal Year (Year Ended October 31, 2022)
Amount of
Adjustment
Note 1

Reporting segment
Machinery &Equipment
Business
Sales
Sales to Unaffiliated Customers
Internal Sales Among Segments
or Amount Transferred
Total(Thousands of Yen)
Consolidated
Financial
Statements
Reported
AmountChemical
Products
Business

Total

11,356,602

34,232,353

45,588,955－

45,588,955

－

－

－

－

－

11,356,602

34,232,353

45,588,955－

45,588,955

Segment Income

903,091
2,396,765
3,299,857－
3,299,857
Segment Assets
10,121,315
23,580,482
33,701,798 12,040,473
45,742,272
Other Items
286,660
89,473376,133
376,133－
Depreciation & Amortization
Increase in Property, Plant &141,245
122,948
264,194－
264,194
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 Statementof Income.

17

(Related information)
Previous Consolidated Fiscal Year (Year Ended October 31, 2021)
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
Japan
35,324,321(Thousands of Yen)Asia
8,852,085

Others956,209

Total
45,132,616(Note)Net sales are classified by country or region based on the customer’s location.
2. Property, Plant and Equipment
Japan
5,535,095

Asia
249,165(Thousands of Yen)
Others125,655

Total
5,909,917

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, 2022)
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
Japan
35,209,128(Thousands of Yen)Asia
8,698,369

Others1,681,457

Total
45,588,955(Note) Net sales are classified by country or region based on the customer’s location.
2. Property, Plant and Equipment
Japan

Asia

5,366,341

314,545(Thousands of Yen)
OthersTotal

143,3095,824,196

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.

18

(Per Share Information)
Year Ended
October 31, 2021
Net Asset per Share¥3,191.07

Year Ended
October 31, 2022
¥3,446.27

Net Income per Share¥211.30¥266.53(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, 2021

Year Ended
October 31, 2022

Net Income for this Fiscal Year (thousands of yen)

2,108,369

2,659,494

Net Income for Common Stock (thousands of yen)

2,108,369

2,659,494

Average number of Common Stock during the Fiscal Year9,978,307

9,978,269(Note3) Calculation basis for net asset per share are as follows:Year Ended
October 31, 2021
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

19

Year Ended
October 31, 2022

31,841,454

34,387,804

31,841,454

34,387,804

9,978,289

9,978,260

4. Other Notes(1) Changes of Officers (effective January 27, 2023)
1. Change of President (Representative Director)
1) Candidate scheduled to be appointed as President (Representative Director)
Name
New Position
Current Position
Senior Managing Director and General
Akitomo Tamai
President (Representative Director)
Manager, Machinery & Equipment Div.
2) President (Representative Director) scheduled to retire
Name
Current Position
Hitoshi Yamamoto
President (Representative Director)(To be appointed as Advisor at the Company)
2. Changes of Directors’ Positions accompanied with the above change
Name
New Position
Current Position
Akiyoshi Shinoda
Managing Director and Executive Officer, Managing Director, Chemical Products Div.
Machinery & Equipment Div.
Tetsuyuki Azuma
Managing Director and Executive Officer, Director and Deputy General Manager,
Chemical Products Div.
Chemical Products Div. (Advanced Materials,
Industrial Materials and Mineral Products
Sectors)
3. Candidate for Director to be newly appointed (excluding the directors serving as Audit & Supervisory Committee
Members)Name
New Position
Current Position
Kazuyuki Kitta
Director and Executive Officer (Accounting and Accounting Manager
Corporate Planning Departments, serving as
Accounting Manager)
4. Candidates for Directors serving as Audit & Supervisory Committee Members
Name
New Position
Current Position
Toshiaki Yakura
Director serving as Audit & Supervisory Director (Accounting and Corporate Planning
Committee Members
Departments)
Rei Sugihara
Director serving as Audit & Supervisory Lawyer
Committee Members (Outside Director)
Partner Lawyer at Kasumi Sogo Law OfficeOutside Auditor at Tachikawa Corporation
Director serving as Audit & Supervisory
Committee Members at Ushio Inc. (Outside
Director)
5. Directors scheduled to retire
Name
Current Position
Toshiaki Yakura
Director (Accounting and Corporate Planning
Departments)
Katsuhiko Ito
Director (President, Representative Director,
Tomoe Machinery Services, Inc.
Atsushi Sada
Director (Deputy General Manager,
Machinery & Equipment Div. (in charge of
Production), and Sagami Plant Manager)
Sakae Fujii
Director (Deputy General manager, Chemical
Products Div. (Chemical Products, Electronic
Materials, and Synthetic Resin Sectors))
Director and Deputy General Manager,
Michiaki Sugiura
Machinery & Equipment Div. (Environmental
Equipment & Overseas Market Sales Dept.)
Masayoshi Fukasawa Director serving as Audit & Supervisory
Committee Members
Makoto Nakamura
Director serving as Audit & Supervisory
Committee Members (Outside Director)

206) Candidate for Substitute Director serving as Audit & Supervisory Committee Member
Name
New Position
Current Position
Takashi Sato
Substitute Director serving as Audit & Certified Tax Accountant
Supervisory Committee Member (Outside
Director)7) Substitute Director serving as Audit & Supervisory Committee Member scheduled to retire
Name
Current Position
Minoru Imai
Substitute Director serving as Audit &Supervisory Committee Member (Outside
Director)

21