Summary of Consolidated Business Results for the First Quarter of Fiscal 2019
October 11, 2019
Company Name:
Toyo Denki Seizo K. K.
Stock Exchange: 1st Section of the Tokyo Stock Exchange
Stock Code:6505
URL
https://www.toyodenki.co.jp
Representative:
Kenzo Terashima, President
Inquiries:
Takatoshi Ohtsuka, General Manager, Management Planning Division
TEL: +81-3-5202-8122
Scheduled date of submission of quarterly financial report: October 11, 2019
Scheduled date of commencement of dividend payments: Preparation of quarterly financial report supplemental explanatory materials: Yes
Holding of quarterly financial results briefing: Yes (for institutional investors and analysts)(Note: Amounts less than one million yen in financial statements and supplementary data are rounded down.)

1.

Consolidated Business Results for the First Quarter of Fiscal 2019 (June 1, 2019 to August 31, 2019)(1)

Consolidated Operating Results(Percentage figures show year-on-year increase or decrease.)
Net Sales

Operating Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

8,841
8,689

1.7
24.9

(51)
(584)

-(39)
(548)

-91
(348)

-1Q Fiscal 2019
1Q Fiscal 2018

(Note) Comprehensive income:

1Q Fiscal 2019 (171) million yen [-%]
1Q Fiscal 2018 (908) million yen [-%]Net Income
per Share
1Q Fiscal 2019
1Q Fiscal 2018(2)

Diluted Net Income
per Share
YenYen10.19(36.89)-Consolidated Financial Position
Total Assets(Reference) Shareholders’ equity:

Shareholders’ Equity
Ratio (%)

Net Assets

Millions of yen

Millions of yen%

56,60558,001

24,36424,80443.0
42.8

As of August 31, 2019
As of May 31, 20192.

Net Income Attributable toOwners of the Parent

Ordinary IncomeAs of August 31, 2019 24,364 million yen
As of May 31, 201924,804 million yen

Dividend Information
Annual Dividend (Yen)
1Q

Fiscal 2018
Fiscal 2019

Interim

3Q

Fiscal Year-End

YenYenYen

Yen

Yen-0.00

-

30.00

30.00

-

30.00

30.00

Fiscal 2019 (Forecast)
0.00(Note) Revisions to the most recently announced dividend forecasts: No

3.

Total

Consolidated Performance Forecast for Fiscal 2019 (June 1, 2019 to May 31, 2020)(Percentage figures show year-on-year increase or decrease.)
Net Sales
Millions of yen

Operating Income%Millions of yen%

Ordinary Income
Millions of yen

Net Income
Attributable to Ownersof the Parent

Net Income perShare (Yen)%

Millions of yen%

YenFirst half
20,1002.4
300
400
Full year
42,0002.0
900
61.4
1,100 121.8(Note) Revisions to the most recently announced performance forecast: No400
900

173.2
30.4

44.73
100.65

* Notes:(1) Transfers of major subsidiaries during the period: No(transfers of specified subsidiaries accompanied by changes in the scope of consolidation)
Newly included: - companies (name of the company)
Excluded: - companies (name of the company)(2)

Application of special accounting practices for the preparation of quarterly consolidated financial statement: No(3)

Changes in accounting policies, changes in accounting estimates, and restatement:(a) Changes in accounting policies in accordance with revisions to accounting standards and related practices: No(b) Any changes other than (a) above: No(c) Changes in accounting estimates: No(d) Restatement: No(4)

Shares outstanding (common stock)(a)

Number of shares outstanding as of the endof the period (including treasury stock):

1Q Fiscal 2019

9,735,000 sharesFiscal 2018

9,735,000 shares(b)

Number of shares of treasury stock as of theend of the period:

1Q Fiscal 2019792,968 sharesFiscal 2018792,966 shares(c)Average number of shares for the period(fiscal year-to-date):

1Q Fiscal 2019

8,942,033 shares

1Q Fiscal 2018

9,443,085 shares**

Quarterly financial reports are not subject to quarterly review procedures by a certified public accountant or audit firm.
Disclaimer concerning the proper use of business results forecasts and other relevant specific items(Note on forward-looking statements)
The forecasts of business results presented in this document are based on management’s assumptions and beliefs in light of currently
available information. Toyo Denki Seizo K. K. (hereinafter Toyo Denki) cautions readers that due to a variety of factors actual
results may differ materially from forecasts. Please refer to “Explanation of Consolidated Performance Forecast and Other Forwardlooking Information” in the Accompanying Materials on page 3 for details relating to forecasts of operating results (available inJapanese only).

*This report is an abridged translation of the Japanese summary consolidated business results, which has been prepared in accordancewith accounting principles generally accepted Japan, for reference purpose only.

Summary of Consolidated Business Results for the First Quarter of Fiscal 2019
Toyo Denki Seizo K. K. (6505)

2.

Consolidated Financial Statements(1)

Consolidated Balance Sheets(Millions of yen)
Fiscal 2018
(As of May 31, 2019)

AssetsCurrent assets
Cash and cash equivalents
Trade notes and accounts receivable
Electronically recorded monetary claims - operating
Products and finished goods
Work in process
Raw materials and stored goods
Advances
Other accounts receivable
OtherAllowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, netLand
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets

1Q Fiscal 2019(As of August 31, 2019)

2,240
14,192
1,443
991
3,504
3,074
47
461
64(1)
26,0191,464
13,958
1,226
1,008
4,003
3,036
22
132
206
(0)
25,05912,210(5,119)7,090
8,174(6,732)
1,441
1,301
31
4,410
(3,592)818
10,683

12,275(5,222)
7,053
8,198(6,840)
1,357
1,301
33
4,469
(3,671)798
10,543

677
14
692

624
14
639

17,856
164
2,598
(12)
20,60631,98258,001

17,242
146
2,985
(12)
20,362
31,54556,605

Summary of Consolidated Business Results for the First Quarter of Fiscal 2019
Toyo Denki Seizo K. K. (6505)(Millions of yen)
Fiscal 2018
(As of May 31, 2019)
Liabilities
Current liabilities
Trade notes and accounts payable
Electronically recorded obligations - operating
Short-term debt
Accrued expenses
Income taxes payable
Consumption and other taxes payable
Advances received
Deposits received
Reserve for directors’ bonuses
Reserve for employees’ bonuses
Reserve for order losses
OtherTotal current liabilities
Long-term liabilities
Long-term debt
Long-term payables
Deferred tax liabilities
Net defined benefit liabilityOther
Total long-term liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Unrealized holding gains on available-for-sale securities
Foreign currency translation adjustments
Adjustments of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

1Q Fiscal 2019
(As of August 31, 2019)

2,670
5,944
2,462
678
320
579
59216
38
819
570
402
14,763

2,291
5,4773,804
711
77
51
71
342
11
414
575
292
14,122

12,961
20
1,554
3,893
4
18,43333,197

12,725
20
1,448
3,918
3
18,11832,240

4,998
3,177
10,797(1,280)17,693

4,998
3,177
10,620(1,280)17,515

7,176
126
(192)
7,110
24,80458,001

6,865
163
(180)
6,848
24,36456,605(2)Summary of Consolidated Business Results for the First Quarter of Fiscal 2019
Toyo Denki Seizo K. K. (6505)
Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income for the First Quarter of Fiscal 2019

8,689
7,4491,240
1,824(584)(Millions of yen)
1Q Fiscal 2019
(June 1, 2019 toAugust 31, 2019)
8,841
7,147
1,694
1,746(51)

0120
10131

0120
20
3144

29
21
127
1595(548)24
01052132(39)

9595

214
214

55(458)29(138)
(109)
(348)
(348)

174
38
4483
91
91

1Q Fiscal 2018
(June 1, 2018 toAugust 31, 2018)
Net Sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating loss
Non-operating income
Interest income
Dividend income
Equity in income of unconsolidated subsidiaries and affiliates
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expense
Equity in loss of unconsolidated subsidiaries and affiliates
Loss on disposal of fixed assets
Foreign exchange losses
Miscellaneous loss
Total non-operating expenses
Ordinary loss
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary loss
Expenses for commemorative events of the 100th anniversary
Total extraordinary losses
Income (loss) before income taxes
Income taxes: Current
Income taxes: Deferred
Total income taxes
Net income (loss)
Net income (loss) attributable to owners of the parent

Summary of Consolidated Business Results for the First Quarter of Fiscal 2019
Toyo Denki Seizo K. K. (6505)
Consolidated Statements of Comprehensive Income for the First Quarter of Fiscal 2019

(348)

(Millions of yen)
1Q Fiscal 2019
(June 1, 2019 toAugust 31, 2019)
91(547)(0)
12(311)
14
11(24)

22(560)
(908)

(262)
(171)

(908)
-(171)-

1Q Fiscal 2018
(June 1, 2018 toAugust 31, 2018)
Net income (loss)
Other comprehensive income
Unrealized holding gains on available-for-sale securities
Foreign currency translation adjustments
Adjusted amounts of defined benefit plans
Share of other comprehensive income of affiliates to which
the equity method is applied
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of the parent
Non-controlling interests

Summary of Consolidated Business Results for the First Quarter of Fiscal 2019
Toyo Denki Seizo K. K. (6505)(3)

Notes on Consolidated Financial Statements(Notes on Going Concern Assumption)
Not applicable(Notes on Significant Changes in the Amount of Shareholders’ Equity)
Not applicable(Segment Information)[Segment Information]
The First Quarter of Fiscal 2018 (June 1, 2018 to August 31, 2018)
Information regarding Net Sales and Income (Loss) by Reporting Segment(Millions of yen)Transportation
Systems

Industrial
Systems

Information
Equipment
Systems

Other(Note 1)

Total

Adjustment
Amount(Note 2)

AmountRecorded on
Quarterly
Consolidated
Statementsof Income(Note 3)

5,458

2,776

448

6

8,689

-

8,689

50-

152

158

(158)

-

5,464

2,776

448

158

8,848

(158)

8,689

46(16)

1046141(725)(584)

Reporting Segment

Net Sales
Sales to third parties
Inter-segment salesand transfers
TotalSegment profit (loss)
Notes:

1.
2.

3.

The “Other” segment includes operations not included in reporting segments such as the dispatch of temporary staff.
The segment profit (loss) adjustment amount is a loss of 725 million yen. This is comprised of an elimination of intersegment sales and transfer amount of a loss of 0 million yen and corporate expenditure (a loss of 725 million yen)that is not allocated to each reporting segment. Corporate expenditure is primarily comprised of selling, general andadministrative expenses, as well as research and development costs that are not allocated to each reporting segment.
Segment profit (loss) has been adjusted with operating loss recorded under the quarterly consolidated statements ofincome.

The First Quarter of Fiscal 2019 (June 1, 2019 to August 31, 2019)
Information regarding Net Sales and Income (Loss) by Reporting Segment(Millions of yen)Transportation
Systems

Industrial
Systems

Information
Equipment
Systems

Other(Note 1)

Total

Adjustment
Amount(Note 2)

AmountRecorded on
QuarterlyConsolidatedStatementsof Income(Note 3)

5,566

2,905

367

1

8,841-

8,841

40-

141

146

(146)

-

5,570

2,906367

143

8,988

(146)

8,841

354

195

89

3642(694)(51)

Reporting Segment

Net Sales
Sales to third parties
Inter-segment sales
and transfers
TotalSegment profit (loss)
Notes:

1.
2.

3.

The “Other” segment includes operations not included in reporting segments such as the dispatch of temporary staff.
The segment profit (loss) adjustment amount is a loss of 694 million yen. This is comprised of an elimination of intersegment sales and transfer amount of 0 million yen and corporate expenditure (a loss of 695 million yen) that is notallocated to each reporting segment. Corporate expenditure is primarily comprised of selling, general andadministrative expenses, as well as research and development costs that are not allocated to each reporting segment.
Segment profit (loss) has been adjusted with operating loss recorded under the quarterly consolidated statements ofincome.

Summary of Consolidated Business Results for the First Quarter of Fiscal 2019
Toyo Denki Seizo K. K. (6505)

3.

Supporting Materials for the Financial Results(1)

The Status of Production, Orders, and Sales(a) Production StatusBusiness segment

1Q Fiscal 2018
(June 1, 2018 to August 31, 2018)Amount(Millions of yen)

1Q Fiscal 2019
(June 1, 2019 to August 31, 2019)

Share(%)

Amount(Millions of yen)

Share(%)

Transportation Systems

5,177

63.5

5,662

68.7

Industrial Systems

2,512

30.8

2,486

30.2

Information Equipment Systems

466

5.7

95

1.2

Other----

Total

8,156

100.0

8,244

100.0

Notes:

1.
2.

Amounts are based on sales prices.
Amounts are exclusive of consumption and other taxes.

(b) Status of Orders Received

Business segment

1Q Fiscal 2018
(June 1, 2018 to August 31, 2018)
Orders Received(Millions of yen)

1Q Fiscal 2019(June 1, 2019 to August 31, 2019)

Balance(Millions of yen)Orders Received(Millions of yen)

Balance(Millions of yen)Transportation Systems

5,567

23,862

5,292

22,325

Industrial Systems

4,363

8,277

3,503

7,781

Information Equipment Systems

248

327

559

892

Other6

-

1-

Total

10,18532,467

9,357

30,999Notes:

1.
2.

Amounts are based on sales prices.
Amounts are exclusive of consumption and other taxes.

(c) Sales Status

Business segment

1Q Fiscal 2018
(June 1, 2018 to August 31, 2018)
Amount(Millions of yen)

1Q Fiscal 2019
(June 1, 2019 to August 31, 2019)

Share(%)

Amount(Millions of yen)

Share(%)

Transportation Systems

5,458

62.8

5,566

63.0

Industrial Systems

2,776

32.0

2,905

32.9

Information Equipment Systems

448

5.2

367

4.2

Other

60.1

10.0

Total

8,689

100.0

8,841

100.0

Notes:

1.
2.

Amounts are based on sales prices.
Amounts are exclusive of consumption and other taxes.