January 11, 2018
Company name:
Representative:
Stock exchange:
Inquiries:

Toyo Denki Seizo K.K.
Kenzo Terashima, President
1st Section of the Tokyo Stock Exchange
Stock Code: 6505
Takatoshi Ohtsuka, General Manager, Management Planning Division
TEL.: +81-3-5202-8122

Toyo Denki Describes Differences between Consolidated Earnings Forecasts and Actual Results for the First Half of Fiscal
2017 and Revised Full-Year Consolidated Earnings Forecasts
Toyo Denki Seizo K.K. (hereinafter Toyo Denki) today announced details describing the differences between its consolidated
earnings forecasts for the first half (June 1, 2017 to November 30, 2017) of fiscal 2017, the year ending May 31, 2018, originallydisclosed on July 12, 2017 and the Company’s actual results for the same period, made public today. Based on the first-halfearnings results, the Company also announced revisions to its full-year consolidated earnings forecasts for fiscal 2017, which werepreviously announced on July 12, 2017. The details of the earnings results, the aforesaid differences and the revised forecasts aresummarized below.
1. Differences between Consolidated Earnings Forecasts and Actual Results for the First Half of Fiscal 2017 (June 1, 2017 toNovember 30, 2017)(In millions of yen, except where noted)

Net Sales

Operating
IncomeOrdinary
IncomeNet Income
Attributable toOwners of theParent

Net Income per
Share (Yen)Previous forecast (A)19,500

200

300

300

31.65

Actual results (B)18,655

(232)

47

256

27.12

Change (B-A)

(845)

(432)

(253)

(44)

Percent change-4.3%--84.3%-14.6%(Reference) Businessresults for 1H, fiscal 2016
ended May 31, 201718,147

179

334

239

25.13

2. Revisions to Full-Year Consolidated Earnings Forecasts (June 1, 2017 to May 31, 2018)(In millions of yen, except where noted)

Net Sales

Operating
IncomeOrdinary
IncomeNet Income
Attributable toOwners of theParent

Net Income per
Share (Yen)Previous forecast (A)43,000

1,700

1,900

1,500

158.24

Revised forecast (B)41,000

1,300

1,450

1,500

158.24

Change (B-A)(2,000)

(400)

(450)

0Percent change-4.7%-23.5%-23.7%

0.0(Reference) Businessresults for fiscal 2016
ended May 31, 2017

40,668

1,571

1,663

1,174

123.87

3. Reasons for Difference and Revision(1) Differences between the consolidated earnings forecasts and actual results for the first half
Operating performance in the transportation systems business was generally in line with the forecast. Meanwhile, in theindustrial systems segment, although efforts were made to reduce the cost of testing systems for automobiles, profit ofmachinery and equipment worsened due to a higher cost ratio as a result of initiatives taken to expand the market. As aresult, operating income on the whole fell considerably short of plan. The level of ordinary income was not enough tocover the drop in operating income. Net income attributable to owners of the parent was generally in line with the forecast,due mainly to the compression of investment securities.
(2) Revisions to the full-year consolidated earnings forecasts
In light of the above, the Company expects net sales to fall short of the previously announced forecast. Operating income
and ordinary income are also expected to fall short of the previously announced forecasts although profitability will likelyimprove. The net income forecast will remain unchanged from the previous forecast since there will be continued efforts tocompress investment securities.