Summary of Consolidated Business Results for the First Three Quarters of Fiscal 2018
April 12, 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 Otsuka, General Manager, Management Planning Division
TEL: +81-3-5202-8122
Scheduled date of submission of quarterly financial report: April 12, 2019 Scheduled date of commencement of dividend payments: Preparation of quarterly financial report’s supplemental explanatory materials:YesHolding of quarterly financial results briefing:
Yes (for institutional investors and analysts)(Note: Amounts less than one million yen in financial statements and the supplementary data are rounded down.)

1.

Consolidated Business Results for the First Three Quarters of Fiscal 2018 (June 1, 2018 to February 28, 2019)(1) Consolidated Operating Results(In millions of yen, except where noted; percentage figures show year-on-year increase or decrease.)
Net Sales%

Millions of yen

3Q Fiscal 201829,553
5.7
3Q Fiscal 201727,947
3.3(Note) Comprehensive income: 3Q Fiscal 2018
3Q Fiscal 2017

Millions of yen

(133)
(602)

Net Income perShare
3Q Fiscal 2018
3Q Fiscal 2017

Millions of yen%

Net Income Attributable toOwners of the Parent
Millions of yen%

(54)
(306)
(428) million yen
904 million yen-175
28

Operating Income

Ordinary Income%

513.1(87.5)[- %][297.5%]

Diluted Net Incomeper ShareYenYen

19.03
3.04

-

(2) Consolidated Financial Position
Total Assets
Millions of yen

3Q Fiscal 2018
As of May 31, 2018
(Reference) Shareholders’ equity:

2.

Shareholders’ Equity
Ratio (%)

Net Assets
Millions of yen

61,227
63,291
3Q Fiscal 2018
As of May 31, 2018%

24,62726,327
24,627 million yen
26,327 million yen

40.2
41.6

Dividend Information
1Q

Annual Dividend (Yen)
3Q
Fiscal Year-EndInterim
Yen

Yen

Total

Yen

Yen

As of May 31, 2018
0.00
50.00
Fiscal 2018
0.00
Fiscal 2018 (Forecast)
30.00(Note) Revisions to the most recently announced dividend forecasts: No(Note) Year-end dividends for Fiscal 2017: Ordinary dividend: 30.00 yen; commemorative dividend: 20.00 yen

50.00

3.

Yen

30.00

Consolidated Performance Forecast for Fiscal 2018 (June 1, 2018 to May 31, 2019)(In millions of yen, except where noted; percentage figures show year-on-year increase or decrease.)
Net Income
Attributable toNet Income perOwners of the Parent
Share (Yen)Net Sales
Operating Income
Ordinary Income
Millions of yen%

Millions of yen%

Yen

Full year
42,500
(0.1)
600
63.5
650(Note) Revisions to the most recently announced performance forecast: Yes

Millions of yen%

Millions of yen%

26.1

700

1.174.69- 1 -*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)

:

No:

NoChanges in accounting estimates(d) Restatement(4) Shares outstanding (common stock)(a) Number of shares outstanding as of the endof the period (including treasury stock)(b) Number of shares of treasury stock as of theend of the period(c) Average number of shares for the period(fiscal year-to-date)February 28,
20199,735,000
shares

As of May31, 2018

9,735,000
sharesFebruary 28,
2019792,560 shares

As of May31, 2018

291,907 shares

9,242,854
shares3Q Fiscal
20179,443,860
shares3Q Fiscal
2018* 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 Forecasts and Other Relevant Specific Items
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 Forward-looking
Information” in the Accompanying Materials on page 3 for details relating to forecasts of operating
results (available in Japanese only).

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

- 2 -Toyo Denki Seizo K. K. (6505) Summary of Consolidated Business Results for the First Three Quarters of Fiscal 20182.

Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
End of the First Three
Quarters of Fiscal 2018
(February 28, 2019)

As of May 31, 2018
AssetsCurrent assets
1,555

2,349

Trade notes and accounts receivable

16,96015,527

Electronically recorded monetary claims - operating

1,152

1,467

Products and finished goods

1,006

839

Work in process

3,506

4,342

Raw materials and stored goods

3,319

3,400

Advances30

43

Other accounts receivable

547

321

Other534

260

Allowance for doubtful accounts

(1)

(1)

28,611

28,551

11,981

12,135

Accumulated depreciation(4,707)(5,013)

Buildings and structures, net

7,274

7,121

7,742

8,145

Accumulated depreciation(6,310)(6,641)

Machinery and equipment, net

1,432

1,504

1,301

1,301

320

134

3,953

4,256(3,116)(3,402)837

854

11,166

10,915885

733

Cash and cash equivalents

Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures

Machinery and equipment

Land
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Software
Software in progress

3-

Other

15

14

Total intangible assets

904

748

19,681

18,350Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets- 3 -95

116

2,845

2,557

(12)

(12)

22,60921,012

34,68032,676

63,291

61,227

Toyo Denki Seizo K. K. (6505) Summary of Consolidated Business Results for the First Three Quarters of Fiscal 2018
(Millions of yen)
End of the First Three
Quarters of Fiscal 2018
(February 28, 2019)

As of May 31, 2018
Liabilities
Current liabilities
Trade notes and accounts payable

4,057

2,335

Electronically recorded obligations - operating

6,295

6,172

Short-term debt

7,241

10,983

Income taxes payable180117

Consumption and other taxes payable

38

254

Accrued expenses

841

939

Advances received

188

149

Deposits received

229

218

Reserve for directors’ bonuses

25

19

Reserve for employees’ bonuses

814

419

Reserve for order losses

689

589

Other

1,716

361

Total current liabilities

22,32022,562

8,930

8,480

35

20

Net defined benefit liability

3,862

3,902

Deferred tax liabilities

1,756

1,629

58

4

14,644

14,03836,96436,600Capital stock

4,998

4,998

Capital surplus

3,177

3,177

Retained earnings

10,57910,282

Treasury stock(480)(1,279)18,274

17,179Unrealized holding gain on available-for-sale securities

8,111

7,520

Foreign currency translation adjustments

188

137

Adjustments of defined benefit plans

(247)

(209)

Total accumulated other comprehensive income

8,052

7,447

26,327

24,627

63,291

61,227Long-term liabilities
Long-term debt
Long-term payables

Other
Total long-term liabilities
Total liabilities
Net assets
Shareholders’ equity

Total shareholders’ equity
Accumulated other comprehensive income

Total net assets
Total liabilities and net assets- 4 -Toyo Denki Seizo K. K. (6505) Summary of Consolidated Business Results for the First Three Quarters of Fiscal 2018

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income for the First Three Quarters

3Q FY2017(June 1, 2017 to February
28, 2018)(Millions of yen)
3Q FY2018(June 1, 2018 to February
28, 2019)

Net Sales

27,94729,553

Cost of sales

22,70824,252Gross profit

5,238

5,301

Selling, general and administrative expenses

5,840

5,434

Operating loss(602)(133)

Non-operating incomeInterest income01

Dividend income

222233Equity in profit of unconsolidated subsidiaries and affiliates

95-

Foreign exchange gains

29-

Gain on reversal of environmental expenses

40-

Miscellaneous income

48

36

Total non-operating income

437

271

110

110

Equity in loss of unconsolidated subsidiaries and affiliates-

11

Loss on disposal of fixed assets

03

Foreign exchange losses-

21

Commission fee

14-

Miscellaneous loss

15

45

Total non-operating expenses

141

192

(306)

(54)

443

571

2-

446

571

Expenses for commemorative events of the 100th anniversary-

53

Loss on sales of non-current assets

7-

Total extraordinary losses

753

Income before income taxes

132463

Income taxes: Current

147

195

Income taxes: Deferred(43)91

Total income taxes

104287Net Income28

175

Net Income Attributable to Owners of the Parent

28

175

Non-operating expenses
Interest expenses

Ordinary loss
Extraordinary income
Gain on sales of investment securities
Other
Total extraordinary income
Extraordinary loss

- 5 -

Toyo Denki Seizo K. K. (6505) Summary of Consolidated Business Results for the First Three Quarters of Fiscal 2018

Consolidated Statements of Comprehensive Income for the First Three Quarters
3Q FY2017(June 1, 2017 to February
28, 2018)(Millions of yen)
3Q FY2018(June 1, 2018 to February
28, 2019)

28

175

Unrealized holding gain on available-for-sale securities

779(590)

Foreign currency translation adjustments

46

5

Adjusted amounts of defined benefit plans
Share of other comprehensive income of affiliates to which theequity method is applied38

37

11(56)

Total other comprehensive income

875

(604)

904

(428)

904

(428)

--Net Income
Other comprehensive income

Comprehensive income
Comprehensive income attributable to:
Owners of the parent
Non-controlling interests- 6 -Toyo Denki Seizo K. K. (6505) Summary of Consolidated Business Results for the First Three Quarters of Fiscal 2018(3) Segment Information(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 Three Quarters of Fiscal 2017 (June 1, 2017 to February 28, 2018)
Information regarding Net Sales and Income (Loss) by Reporting Segment
Reporting Segment

Net Sales
Sales to third parties
Inter-segment sales andtransfersTotal
Segment profit (loss)

Note:(Millions of yen)AmountRecorded onAdjustment
Quarterly
AmountConsolidated(Note 2)
Statements ofIncome (Note3)

Transportation
Systems

Industrial
Systems

Information
Equipment
Systems

Other(Note 1)

18,409

8,026

1,506

4

27,947-

27,94713
18,422
1,372

1
8,027
(21)

1,506
156

542
547
29

557
28,504
1,535(557)(557)(2,137)

27,947
(602)

Total

1. The “Other” segment includes operations not included in reporting segments such as the dispatch oftemporary staff.
2. The segment profit (loss) adjustment amount is a loss of 2,137 million yen. This is comprised of anelimination of inter-segment sales and transfer amount at a loss of 1 million yen and corporate expenditure(a loss of 2,136 million yen) that is not allocated to each reporting segment. Corporate expenditure is
primarily comprised of selling, general and administrative expenses as well as research and development
costs that are not allocated to each reporting segment.
3. Segment profit (loss) has been adjusted with operating loss recorded under the quarterly consolidated
statements of income.

The First Three Quarters of Fiscal 2018 (June 1, 2018 to February 28, 2019)
Information regarding Net Sales and Income (Loss) by Reporting Segment
Reporting Segment

Net Sales
Sales to third parties
Inter-segment sales andtransfers
TotalSegment profit(Millions of yen)AmountRecorded on
Adjustment
Quarterly
AmountConsolidated(Note 2)
Statements ofIncome (Note3)

Transportation
Systems

Industrial
Systems

Information
Equipment
Systems

Other(Note 1)

19,804

8,638

1,098

11

29,553-29,55337
19,841
1,457

0
8,639
269

1,098
213

433
445
25

472
30,025
1,965(472)(472)(2,099)29,553
(133)

Total

Notes: 1. The “Other” segment includes operations not included in reporting segments such as the dispatch of
temporary staff.
2. The segment profit adjustment amount is a loss of 2,099 million yen. This is comprised of an elimination ofinter-segment sales and transfer amount at a loss of 1 million yen and corporate expenditure (a loss of 2,097
million yen) that is not allocated to each reporting segment. Corporate expenditure is primarily comprised- 7 -Toyo Denki Seizo K. K. (6505) Summary of Consolidated Business Results for the First Three Quarters of Fiscal 2018of selling, general and administrative expenses as well as research and development costs that are notallocated to each reporting segment.
3. Segment profit (loss) has been adjusted with operating loss recorded under the quarterly consolidated
statements of income.

- 8 -Toyo Denki Seizo K. K. (6505) Summary of Consolidated Business Results for the First Three Quarters of Fiscal 20183.

Supporting Materials for the Financial Results(1) Status of Production, Orders, and Sales(a)

Production Status

3Q FY2017(June 1, 2017 to February 28, 2018)
Business segment
AmountShare(Millions of yen)(%)
Transportation Systems
19,424
67.8
Industrial Systems
8,696
30.3
Information Equipment Systems536
1.9
OtherTotal
28,657100.0
Notes: 1. Amounts are based on sales prices.
2. Amounts are exclusive of consumption and other taxes.

3Q FY2018(June 1, 2018 to February 28, 2019)
AmountShare(Millions of yen)(%)
19,232
67.6
8,343
29.3
859
3.0
28,435100.0(b) Status of Orders Received
3Q FY2017(June 1, 2017 to February 28, 2018)
Business segment
Orders Received
Balance(Millions of yen)
(Millions of yen)Transportation Systems
19,92427,489Industrial Systems
8,208
7,331
Information Equipment Systems
2,034
1,440
Other4
Total
30,171
36,262
Notes: 1. Amounts are based on sales prices.
2. Amounts are exclusive of consumption and other taxes.
(c)

3Q FY2018(June 1, 2018 to February 28, 2019)
Orders Received
Balance(Millions of yen)
(Millions of yen)
16,997
20,947
9,953
8,004
914
343
1127,877
29,296

Sales Status

3Q FY2017(June 1, 2017 to February 28, 2018)
Business segment
AmountShare(Millions of yen)(%)
Transportation Systems
18,40965.9Industrial Systems
8,026
28.7
Information Equipment Systems
1,506
5.4
Other40.0
Total
27,947100.0
Notes: 1. Amounts are based on sales prices.
2. Amounts are exclusive of consumption and other taxes.

- 9 -3Q FY2018(June 1, 2018 to February 28, 2019)
AmountShare(Millions of yen)(%)
19,804
67.0
8,638
29.2
1,098
3.7
110.0
29,553100.0