File name: 157_2Q 短信_E(18FTZL180897).docx

Date of update: 2018/03/13 15:24, Date of printing: 2018/03/13 15:24

Summary of Consolidated Business Results for the First Half of Fiscal 2017
For the fiscal year ending May 31, 2018
January 11, 2018
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:
January 12, 2018
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 andanalysts)
Note: Amounts less than one million yen in financial statements and the supplementary data are rounded down.

1. Consolidated Business Results for the First Half of Fiscal 2017 (June 1, 2017 to November 30, 2017)(1) Consolidated Operating Results(In millions of yen, except where noted; percentage figures show year-on-year increase or decrease.)
Net Income Attributable
Net Sales
Operating Income
Ordinary Income
to Owners of the Parent%

Millions of yen%

Millions of yen%

1H Fiscal 2017
18,6552.8(232)－
1H Fiscal 2016
18,147179(3.2)(70.7)(Note) Comprehensive income: 1H Fiscal 2017 : 1,374 million yen [653.3%]
1H Fiscal 2016 : 182 million yen [(11.5)%]

Millions of yen%

Millions of yen

47334(85.8)(52.8)

2562397.1(49.5)Net Income per Share

Diluted Net Income perShareYenYen

1H Fiscal 201727.12－
1H Fiscal 201625.13－* The Company conducted a share consolidation of its common shares at a ratio of 5 shares to 1 share effective December 1, 2016.
Net income per share is calculated on the assumption that the share consolidation was conducted at the beginning of the previous
fiscal year.

(2) Consolidated Financial Position
Total Assets

Shareholders’ Equity
Ratio (%)

Net Assets

Millions of yen

Millions of yen%

As of November 30, 2017
59,02525,693As of May 31, 2017
54,927
24,603(Reference) Shareholders’ equity: As of November 30, 2017 : 25,693 million yen
As of May 31, 2017 : 24,603 million yen

43.5
44.8

2. Dividend Information
Annual Dividend (Yen)
1QInterimYen

3Q
Yen

Fiscal 2016
0.00－
Fiscal 2017
0.00－
Fiscal 2017 (Forecast)(Note) Revisions to the most recently announced dividend forecasts

Fiscal Year-End

Total

Yen

Yen

Yen

－

30.00

30.00

－: No

30.00

30.00

3. Consolidated Performance Forecast for Fiscal 2017 (June 1, 2017 to May 31, 2018)(In millions of yen, except where noted; percentage figures show year-on-year increase or decrease.)
Net Sales
Millions of yen

Operating Income%Millions of yen

Net Income
Net Income per
Attributable toShare (Yen)
Owners of the Parent

Ordinary Income%Millions of yen

Full year
41,0000.8
1,300 (17.3)(Note) Revisions to the most recently announced performance forecast―1―%Millions of yen%

Yen

1,450 (12.8)
: Yes

1,500

27.7

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Date of update: 2018/03/13 15:24, Date of printing: 2018/03/13 15:24

Notes:(1) Transfers of major subsidiaries during the period: No(transfers of specified subsidiaries accompanied by changes in the scope of consolidation)(2) Application of Special Accounting Practices for the Preparation ofQuarterly Consolidated Financial Statement: No(3) Changes in accounting policies, changes in accounting estimates, and restatement(a) Changes in accounting policies in accordance with revisions: No
to accounting standards and related practices(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 end of the period (including treasury stock):
November 30, 2017: 9,735,000 shares
May 31, 2017: 9,735,000 shares(b) Number of shares of treasury stock as of the end of the period:
November 30, 2017: 291,417 shares
May 31, 2017: 290,569 shares(c) Average number of shares for the period (fiscal year-to-date):
1H Fiscal 2017: 9,444,009 shares
1H Fiscal 2016: 9,513,764 shares* The Company conducted a share consolidation of its common shares at a ratio of 5 shares to 1 share effective December 1, 2016.
Number of shares outstanding (common stock) is calculated on the assumption that the share consolidation was conducted at thebeginning of the previous fiscal year.

**

Quarterly financial reports are not subject to quarterly review procedures.
Disclaimer concerning the Proper Use of Business Results 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 ofcurrently available information. Toyo Denki Seizo K. K. (hereinafter Toyo Denki) cautions readers that due to a variety offactors actual results may differ materially from forecasts. Please refer to “Explanation of Consolidated Performance Forecastand Other Forward-looking Information” in the Accompanying Materials on page 3 for details relating to operating results
forecasts (available in Japanese only).

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

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Date of update: 2018/03/13 15:24, Date of printing: 2018/03/13 15:24

2. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
End of the First Half of Fiscal
2017(November 30, 2017)

As of May 31, 2017
AssetsCurrent assets
Cash and cash equivalents
Trade notes and accounts receivable
Electronically recorded monetary claims operating
Products and finished goods
Work in process

2,091
15,8301,170
15,713

531

824

870
3,373

1,605
4,424

Raw materials and stored goods
Advances

2,234
26

2,885
54

Deferred tax assets
Other accounts receivable

576
165

552
35

Other
Allowance for doubtful accounts

99576

(1)

(1)

25,79927,839Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures

7,415

7,348

Accumulated depreciation(4,710)(4,715)

Buildings and structures, net

2,704

2,632

7,030

7,292(6,239)(6,382)

791

909

Land

1,345

1,282

Construction in progress
Other

2,336
3,363

2,800
3,514

(2,920)(2,993)

443

521

7,622

8,146

Machinery and equipment
Accumulated depreciation
Machinery and equipment, net

Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Software163906

Software in progress
Other

906
1158
11

Total intangible assets

1,081

975

Investment securities
Deferred tax assets

18,15466

19,60758

OtherAllowance for doubtful accounts

2,215

2,409

(12)

(12)

Total investments and other assets

20,42422,06329,12831,18554,92759,025Investments and other assets

Total fixed assets
Total assets―3―File name: 157_2Q 短信_E(18FTZL180897).docx

Date of update: 2018/03/13 15:24, Date of printing: 2018/03/13 15:24(Millions of yen)
End of the First Half of Fiscal
2017(November 30, 2017)

As of May 31, 2017
Liabilities
Current liabilities
Trade notes and accounts payable
Electronically recorded obligations - operating

3,346
5,489

4,475
5,631

Short-term debt
Income taxes payable

4,969
437

6,646
208

Consumption and other taxes payable
Accrued expenses

134
1,069

28
991

Advances received
Deposits received

119
235

107
260

Reserve for directors’ bonuses
Reserve for employees’ bonuses

33
952

22
1,045

Reserve for order losses
Other

365
389

459
377

Total current liabilities

17,543

20,255Long-term debt
Long-term payables

6,786
157

6,685
35

Net defined benefit liability
Deferred tax liabilities

3,913
1,792

3,926
2,297

131

130

12,78013,07630,32433,331

Capital stock
Capital surplus

4,998
3,177

4,998
3,177

Retained earnings
Treasury stock

10,17010,142(477)(479)

Total shareholders’ equity

17,868

17,839

6,879

7,992

Long-term liabilities

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

Accumulated other comprehensive income
Unrealized holding gain on available-for-salesecurities
Foreign currency translation adjustments
Adjustments of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets―4―156137

(300)

(275)

6,735

7,854

24,60325,69354,92759,025File name: 157_2Q 短信_E(18FTZL180897).docx

Date of update: 2018/03/13 15:24, Date of printing: 2018/03/13 15:24(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income for the First Half

Net Sales
Cost of sales

1H FY2016(June 1, 2016 to November 30,2016)
18,147
14,078(Millions of yen)
1H FY2017(June 1, 2017 to November 30,2017)
18,655
14,887Gross profit

4,069

3,768

Selling, general and administrative expenses

3,890

4,000

Operating income (loss)

179(232)

Non-operating income
Interest income

00164

171

1171

95040

Dividend income
Equity in profit of unconsolidated subsidiaries andaffiliates
Foreign exchange gains
Gain on reversal of environmental expenses
Miscellaneous income－34

Total non-operating income

220374

Interest expense
Loss on disposal of fixed assets

55
2720

Commission fee
Miscellaneous loss

－6101241

Non-operating expenses

Total non-operating expenses

649533447

Gain on sales of investment securitiesOther－－390
2

Total extraordinary income－392

Extraordinary loss
Loss on sales of fixed assets

237

Ordinary Income
Extraordinary income

Total extraordinary losses

237

Income before income taxes

311

432

Income taxes: Current

286

138

Income taxes: Deferred(214)38

Total income taxes

72

176

Net income

239

256

Net Income Attributable to Owners of the Parent

239

256

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Date of update: 2018/03/13 15:24, Date of printing: 2018/03/13 15:24

Consolidated Statements of Comprehensive Income for the First Half

Net incomeOther comprehensive income
Unrealized holding gain on available-for-salesecurities
Foreign currency translation adjustments

1H FY2016(June 1, 2016 to November 30,2016)
239(Millions of yen)
1H FY2017(June 1, 2017 to November 30,2017)
256

91

1,112

(10)
25(3)

(162)

(16)

Adjusted amounts of defined benefit plans
Share of other comprehensive income of affiliates towhich the equity method is applied
Total other comprehensive income
Comprehensive income25(56)

1,118

182

1,374

182

1,374－－Comprehensive income attributable to:
Owners of the parentNon-controlling interests―6―File name: 157_2Q 短信_E(18FTZL180897).docx

Date of update: 2018/03/13 15:24, Date of printing: 2018/03/13 15:24(3) Consolidated Statements of Cash Flows
1H FY2016(June 1, 2016 to November 30,2016)(Millions of yen)
1H FY2017(June 1, 2017 to November 30,2017)

Cash flows from operating activities
Income before income taxes

311

432

Depreciation and amortization
Decrease in allowance for doubtful accounts

371
(0)

487
(0)

Increase in reserve for employees’ bonuses
Increase in net defined benefit liability

124409313

Increase in reserve for order losses
Interest and dividends income

7893Interest expense
Loss on sales of property, plant and equipment

(164)
55
23(171)
72
7

Gain on sales of investment securities
Increase in notes and accounts receivable-trade－(428)

(390)
(172)

Increase in inventories(Decrease) increase in trade notes and accounts
payableIncrease (decrease) in advances received
Decrease in accrued expenses(521)(2,434)

(885)

1,267

353

(12)
(80)

Other(51)29(585)

Subtotal(663)(1,378)Interest and dividends income received172

171

Interest expenses paid
Refund of (payments for) corporate and other taxes(56)
14(70)(483)

Net cash used in operating activities(533)(1,761)

Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment(366)－(939)
74

Purchases of intangible assets
Purchases of investment securities

(133)
(6)
0(64)
(163)
840

－(70)

－(124)

26(3)

Cash flows from investing activities

(480)

(451)

Cash flows from financing activities
Increase in short-term loans payable, net

Cash flows from investing activities

Proceeds from sales of investment securities
Payments of loans receivable
Payments for investments in capital of subsidiaries
and affiliates
Other

1,500

1,673

Repayment of long-term debt
Purchases of treasury stock

(181)
(300)

(101)
(1)

Cash dividends paid
Other(289)
(0)

(282)
(0)

728

1,287

(1)

5(287)

(920)

2,401

2,091

2,114

1,170

Cash flows from financing activities
Effect of exchange rate change on cash and cash
equivalents
Decrease in cash and cash equivalents
Balance of cash and cash equivalents at the beginning ofthe period
Balance of cash and cash equivalents at the end of theperiod―7―File name: 157_2Q 短信_E(18FTZL180897).docx

Date of update: 2018/03/13 15:24, Date of printing: 2018/03/13 15:24(4) 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 Half of Fiscal 2016 (June 1, 2016 to November 30, 2016)
Information regarding Net Sales and Income (Loss) by Reporting Segment
Reporting Segment
Other1Total(Millions of yen)AmountRecorded on
Adjustment
Quarterly
Amount2
Consolidated
Statementsof Income3

Transportation
Systems

Industrial
Systems

Information
Equipment
Systems

12,765

4,909

468

2

18,147－

18,14762－

333

341(341)－

12,772

4,912

468

336

18,489(341)

18,147

1,312

153

47

25

1,538(1,359)

179

Net Sales
Sales to third parties
Inter-segment sales andtransfers
Total
Segment profit

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 1,359 million yen. This is comprised of an elimination of inter-segment
sales and transfer amount at a loss of 0 million yen and corporate expenditure (a loss of 1,359 million yen) that is notallocated 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 has been adjusted with operating income recorded under the quarterly consolidated statements of income.
The First Half of Fiscal 2017 (June 1, 2017 to November 30, 2017)
Information regarding Net Sales and Income (Loss) by Reporting Segment
Reporting Segment
Other1

Total(Millions of yen)AmountRecorded on
Adjustment
Quarterly
Amount2
Consolidated
Statementsof Income3

Transportation
Systems

Industrial
Systems

Information
Equipment
Systems

12,655

5,292

704

3

18,655－18,65501－372

373(373)－

Total

12,655

5,293

704

375

19,029(373)

18,655

Segment profit (loss)

1,140(33)

34

22

1,163

(1,395)(232)

Net Sales
Sales to third parties
Inter-segment sales andtransfers

Notes:
1. The “Other” segment includes operations not included in reporting segments such as the dispatch of temporary staff.
2. The segment profit (loss) adjustment amount is a loss of 1,395 million yen. This is comprised of an elimination of intersegment sales and transfer amount at a loss of 4 million yen and corporate expenditure (a loss of 1,391 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.
3. Segment profit (loss) has been adjusted with operating loss recorded under the quarterly consolidated statements of income.

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Date of update: 2018/03/13 15:24, Date of printing: 2018/03/13 15:24

3. Supporting Materials for the Financial Results(1) The Status of Production, Orders, and Sales(a) Production Status
1H FY2016(June 1, 2016 to November 30, 2016)
Business segment

Amount(Millions of yen)

1H FY2017(June 1, 2017 to November 30, 2017)

Share(%)

Amount(Millions of yen)

Share
(%)

Transportation Systems

12,901

73.4

12,811

69.8

Industrial Systems

4,434

25.2

5,357

29.2

Information Equipment Systems

250

1.4

186

1.0

Other－－－－Total

17,585100.0

18,356100.0

Notes:
1. Amounts are based on sales prices.
2. Amounts are exclusive of consumption and other taxes.
(b) Status of Orders Received

Business segment

1H FY2016(June 1, 2016 to November 30, 2016)
Orders Received(Millions of yen)

1H FY2017(June 1, 2017 to November 30, 2017)

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

Balance(Millions of yen)Transportation Systems

13,68625,08012,622

25,773

Industrial Systems

5,923

7,042

5,736

7,593

Information Equipment Systems

1,309

1,353

1,382

1,590

Other2－3－

Total

20,92233,477

19,74534,958Notes:
1. Amounts are based on sales prices.
2. Amounts are exclusive of consumption and other taxes.
(c) Sales Status

Business segment

1H FY2016(June 1, 2016 to November 30, 2016)
Amount(Millions of yen)

1H FY2017(June 1, 2017 to November 30, 2017)

Share(%)

Amount(Millions of yen)

Share(%)

Transportation Systems

12,76570.3

12,655

67.8

Industrial Systems

4,909

27.1

5,292

28.4

Information Equipment Systems

468

2.6

704

3.8Other

20.0

30.0

Total

18,147100.0

18,655100.0

Notes:
1. Amounts are based on sales prices.
2. Amounts are exclusive of consumption and other taxes.

―9―