July 14, 2022
To Whom It May Concern,

Company Name

Toyo Denki Seizo K.K.

Representative

Akira Watanabe, President(Stock Code: 6505 TSE Standard Market)

Inquiries

Toshihito Nakanishi, Operating Officer,
General Manager, Management Planning
Division(TEL 03-5202-8122)

Notice on Difference Between Consolidated Performance Forecast and Results for theFiscal Year Ended May 2022 and Recording of Non-operating Income, Extraordinary
Losses and Income Taxes-Deferred (Gain)
Toyo Denki Seizo K.K. (hereinafter “Toyo Denki”) hereby announces there is a difference between the consolidated
performance forecast for the fiscal year ended May 2022 disclosed on January 12, 2022 and the results for the same period
disclosed today, together with the recording of non-operating income, extraordinary losses and income taxes-deferred (gain) as
follows.

1. Difference between consolidated performance forecast and results for the fiscal year ended May 2022
(June 1, 2021 to May 31, 2022)
Net sales

Previous forecast (A)Millions of yen
33,000Net income
attributable toowners of theparent

Net income pershare

Operating income

Ordinary income

Millions of yen
250

Millions of yen
600

Millions of yen
700Yen78.29

171766(930)(104.02)

Results (B)30,158Change (B − A)

(2,841)(78)

166(1,630)(8.6)(31.2)

27. 7－

Millions of yen
33,143

Millions of yen
423

Millions of yen
757

Millions of yen
977

Change (%)(Reference) Results for theprevious year
(Fiscal year ended May 2021)

Yen
109.38

2. Difference between consolidated performance forecast and results

Net sales were 30,158 million yen (down 8.6%) as the Transportation Systems, Industrial Systems, and Information
Equipment Systems segments all fell short of the plan due to the longer-than-expected impact of COVID-19.
Operating income was 171 million yen (down 31.2%) which fell short of the plan. This was mainly due to the impact
from reviewing the installation plan of testing equipment for automotive development in Industrial systems segment as aresult of the rapid change to electrification, in addition to a decline in profit margin with the production shortage and pricehike in components, etc.
Ordinary income was 766 million yen (up 27.7%) which exceeded the plan. This was mainly due to the steady
performance of equity-method affiliates in China (Changzhou Ruiyang Transmission Technology Co., Ltd., Beijing Jingche
Shuangyang Traction System Co., Ltd.) and the recording of foreign exchange gains.
Net income was a loss of 930 million yen which substantially fell short of the plan. This was mainly due to the recording

of impairment losses on business assets of 2,256 million yen in the Industrial Systems segment and the recording of a loss
on valuation of investments in capital of subsidiaries and associates and loss on valuation of investment securities, despite again on sales of investment securities and gain on reversal of foreign currency translation adjustments.

3. Recording of non-operating income
Share of profit of entities accounted for using the equity method of 242 million yen was recorded as investment income forthe fiscal year under review due to the steady performance of equity-method affiliates in China. Foreign exchange gains of 227
million yen were also recorded due to the depreciating yen in the exchange rate.

4. Recording of extraordinary losses
In the Industrial Systems segment, in consideration of the business environment and future outlook, future recoverability wasreviewed based on the Accounting Standard for Impairment of Fixed Assets. As a result, the book value of certain fixed assets
was reduced to the recoverable amount, and an impairment loss of 2,256 million was recorded for the fiscal year under review.
In addition, a loss on valuation of investments in capital of subsidiaries and associates of 155 million yen was recorded for
Changzhou Yangdian Zhanyun Transport Equipment Co., Ltd., the Group’s non-consolidated subsidiary in China, for thefiscal year under review, as a result of taking into account its operating results and financial position.

5. Recording of income taxes-deferred (gain)
As a result of reviewing recoverability of deferred tax assets based on the future outlook, Toyo Denki has decided to record
a portion of deferred tax assets that is expected to be recoverable. As a result, income taxes-deferred (gain) of 703 million yen
was recorded in the fiscal year ended May 2022.

6. Year-end dividend
Toyo Denki regards the stable return of profits to shareholders through dividends as one of its important management policies.
The year-end dividend is planned to be 30 yen per share, in line with the dividend forecast disclosed on July 15, 2021.