October 13, 2022

Consolidated Financial Results for the Three Months Ended August 31, 2022
(Under Japanese GAAP)
Company name:Toyo Denki Seizo K.K.
Listing:
Tokyo Stock Exchange
Securities code:6505
URL
https://www.toyodenki.co.jp
Representative:
Akira Watanabe, President
Inquiries:
Jun Nukina, Operating Officer, General Manager, Management Planning Division
Telephone:+81-3-5202-8122
Scheduled date to file quarterly securities report:
October 14, 2022
Scheduled date to commence dividend payments:—Preparation of supplementary material on quarterly financial results:
Yes
Holding of quarterly financial results briefing:
Yes(Yen amounts are rounded down to millions, unless otherwise noted.)1.

Consolidated financial results for the three months ended August 31, 2022 (from June 1,2022 to August 31, 2022)(1) Consolidated operating results (cumulative)
Net sales(Percentages indicate year-on-year changes.)
Profit attributable toOrdinary profit
owners of parent

Operating profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%Three months ended
August 31, 2022

6,305

(6.6)

(266)

—(3)

—196

72.2

August 31, 2021

6,752

(14.0)(339)—(145)—

114(63.8)

Note: Comprehensive income

For the three months ended August 31, 2022: ¥900 million [-%]For the three months ended August 31, 2021: ¥(75) million [-%]

Basic earnings per share

Diluted earnings pershare

Yen

Yen

Three months ended
August 31, 2022

21.98

—

August 31, 2021

12.76

—

(2) Consolidated financial position
Total assets

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen%

As ofAugust 31, 2022

47,67322,64447.5

May 31, 2022

46,91622,012

46.9

Reference: EquityAs of August 31, 2022: ¥22,644 million
As of May 31, 2022: ¥22,012 million

2.

Cash dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Fiscal year ended
May 31, 2022
Fiscal year ending
May 31, 2023—

Fiscal year-end

Total

Yen

Yen

0.00

—

30.00

30.00

0.00

—

30.00

30.00

—

Fiscal year ending
May31,2023(Forecast)

Note: 1. Revisions to the forecast of cash dividends most recently announced: None3.

Consolidated financial results forecast for the fiscal year ending May 31, 2023 (from June
1, 2022 to May 31, 2023)(Percentages indicate year-on-year changes.)
Net sales

Six months ending
November 30, 2022
Fiscal year ending
May 31, 2023

Operating profit

Profit attributable toowners of parent

Ordinary profit

Basic earnings pershare

Millionsof yen%Millionsof yen%Millionsof yen%Millionsof yen%Yen

16,000

8.1

(80)

—

160

—

300

61.1

33.56

34,000

12.7

450

161.8

700

(8.6)

800

—

89.48

Note: Revisions to the financial results forecast most recently announced: None* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change inscope of consolidation): None
Newly included: - companies (Company name)
Excluded: - companies (Company name)(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(4) Number of issued shares (common shares)
(i)

(ii)

Total number of issued shares at the end of the period (including treasury shares)
As of August 31, 2022

9,735,000 shares

As of May 31, 2022

9,735,000 shares

Number of treasury shares at the end of the period
As of August 31, 2022

794,773 shares

As of May 31, 2022

794,608 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Three months ended August 31, 2022

8,940,317 shares

Three months ended August 31, 2021

8,940,797 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or anaudit corporation.
* Proper use of earnings forecasts, and other special matters(Notes on forward-looking statements)
The above forecasts are based on information available as of the date of publication of this document, and actual
results may differ from the forecasts due to variable factors in the future. Please refer to “Explanation ofConsolidated Financial Results Forecast and Other Forward-looking Information” on page 3 of the Attachment for
details of the financial results forecast (available in Japanese only).
* This document has been translated from a part of the Japanese original for reference purposes only. In the event ofany discrepancy between this translated document and the Japanese original, the original shall prevail.

Toyo Denki Seizo K.K. (6505) Financial Results for the Three Months Ended August 31, 2022

2.

Quarterly Consolidated Financial Statements and Significant Notes Thereto(1)

Quarterly Consolidated Balance Sheet(Millions of yen)
As ofMay 31, 2022

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsElectronically recorded monetary claims - operating
Merchandise and finished goods
Work in process
Raw materials and supplies
Advance payments to suppliers
Accounts receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
LandConstruction in progress
Other
Accumulated depreciationOther, 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 non-current assets
Total assets

As ofAugust 31, 2022

4,449

4,184

12,091
1,136
501
3,077
2,688
8
25
212
(1)
24,18912,211
1,102
568
3,451
2,722
21
58
265
(1)
24,585

10,326(6,341)
3,985
8,185(7,605)
579
1,270
7
4,977
(4,497)
479
6,322

9,953
(6,144)
3,808
8,195(7,672)
523
1,269
7
5,003
(4,542)
461
6,070

87
14
101

77
14
91

12,471
883
2,953
(6)
16,302
22,726
46,916

13,297
535
3,100
(6)
16,92523,08747,673

Toyo Denki Seizo K.K. (6505) Financial Results for the Three Months Ended August 31, 2022
(Millions of yen)
As ofMay 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Accrued expenses
Income taxes payable
Accrued consumption taxes
Contract liabilitiesDeposits received
Provision for bonuses for directors (and other officers)
Provision for bonuses
Provision for loss on orders received
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Long-term accounts payable - other
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

As ofAugust 31, 2022

1,610
4,205
585
688
306
82
47
190
6699
970
176
9,569

1,681
3,852
1,685
732
43
81
84
272
9
351
934
150
9,880

11,17338
4,113
6
15,33324,903

10,97030
4,141
615,14825,028

4,998
3,177
11,122(1,282)18,016

4,998
3,177
11,050(1,282)
17,944

3,913
144
(61)
3,996
22,012
46,916

4,530
225
(55)
4,700
22,64447,673

Toyo Denki Seizo K.K. (6505) Financial Results for the Three Months Ended August 31, 2022
(2)

Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income
Quarterly Consolidated Statement of Income (Cumulative)(Millions of yen)Three months ended
August 31, 2021

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating loss
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Foreign exchange gains
Miscellaneous income
Total non-operating income
Non-operating expensesInterest expenses
Loss on abandonment of non-current assets
Foreign exchange losses
Miscellaneous losses
Total non-operating expenses
Ordinary loss
Extraordinary income
Gain on sale of investment securities
Gain on reversal of foreign currency translation adjustment
Gain on sale of non-current assets
Total extraordinary income
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to owners of parent

Three months ended
August 31, 2022

6,752
5,415
1,337
1,676(339)

6,305
4,937
1,368
1,634(266)083118—122140116
48
106
8280

1502120(145)130—
317(3)

162
94—
256
110
15(19)
(3)
114
114

138
—
150289
286
1672
89
196
196

Toyo Denki Seizo K.K. (6505) Financial Results for the Three Months Ended August 31, 2022
Quarterly Consolidated Statement of Comprehensive Income (Cumulative)(Millions of yen)Three months ended
August 31, 2021
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accountedfor using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of parent
Non-controlling interests

Three months ended
August 31, 2022
114

196(174)
26(24)

616—
681(189)
(75)

703
900

(75)
—900—

Toyo Denki Seizo K.K. (6505) Financial Results for the Three Months Ended August 31, 2022
(3)

Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption)
Not applicable(Notes on Significant Changes in Shareholders’ Equity)
Not applicableToyo Denki Seizo K.K. (6505) Financial Results for the Three Months Ended August 31, 2022
(Segment Information, etc.)[Segment Information]
Three months ended August 31, 2021
Information regarding net sales and profit (loss) by reporting segment(Millions of yen)
Reporting segments

Transportation
Business

Net sales
Net sales to externalcustomers
Intersegment sales andtransfers
Total
Segment profit (loss)
Notes:

1.
2.

3.

ICT Solution
BusinessIndustry
Business

Other(Note 1)

Total

Adjustments(Note 2)

Amountrecorded onquarterly
consolidated
statement ofincome(Note 3)4,752

1,883

114

2

6,752

—

6,752

00—

8990(90)

—

4,753

1,883

114

91

6,843

(90)

6,752

403

(65)

(5)

(4)

328

(668)

(339)

“Other” is a business segment that is not included in reporting segments, and includes the worker dispatchingbusiness.
Adjustments to segment profit (loss) of ¥(668) million are the elimination of intersegment transactions of ¥0
million and corporate expenses of ¥(668) million that are not attributable to reporting segments. Corporate expenses
are primarily general and administrative expenses as well as research and development expenses that are not
attributable to reporting segments.
Segment profit (loss) has been adjusted with operating loss recorded on the quarterly consolidated statement ofincome.

Three months ended August 31, 2022
1.
Information regarding net sales and profit (loss) by reporting segment(Millions of yen)
Reporting segments

Transportation
Business

Net sales
Net sales to externalcustomers
Intersegment sales andtransfers
Total
Segment profit (loss)
Notes:

1.
2.

3.

2.

Industry
Business

ICT Solution
BusinessOther(Note 1)

Total

Adjustments(Note 2)

Amountrecorded onquarterlyconsolidated
statement ofincome(Note 3)

4,017

1,983

302

16,305－

6,305

30－

7276(76)

－

4,021

1,983

302

73

6,381(76)6,305

353(56)83(5)374(641)(266)“Other” is a business segment that is not included in reporting segments, and includes the worker dispatchingbusiness.
Adjustments to segment profit (loss) of ¥(641) million are the elimination of intersegment transactions of ¥(0)
million and corporate expenses of ¥(641) million that are not attributable to reporting segments. Corporate expenses
are primarily general and administrative expenses as well as research and development expenses that are not
attributable to reporting segments.
Segment profit (loss) has been adjusted with operating loss recorded on the quarterly consolidated statement ofincome.

Matters regarding changes, etc. in reporting segments
The reporting segment originally named “Information Equipment Business” has been renamed to the “ICT Solution Business”
from the three months ended August 31, 2022. This name change has no impact on the segment information.
As a result of this change, the segment information for the three months ended August 31, 2011 is also presented under the newname.

Toyo Denki Seizo K.K. (6505) Financial Results for the Three Months Ended August 31, 2022

3.

Other

(1) Status of Production, Orders, and Sales(i) Production status

Business segment

Three months ended
August 31, 2021
Amount(Millions of yen)Three months ended
August 31, 2022

Share
(%)

Amount(Millions of yen)

Share
(%)

Transportation Business

4,370

70.6

4,202

68.6

Industry Business

1,768

28.6

1,830

29.9

ICT Solution Business

55

0.9

91

1.5

Other————

Total

6,194

100.0

6,124

100.0

Note: Amounts are based on sales prices.
(ii) Status of Orders Received

Business segment

Three months ended
August 31, 2021
Orders(Millions of yen)Three months ended
August 31, 2022

Order backlog(Millions of yen)Orders(Millions of yen)Order backlog(Millions of yen)Transportation Business

3,924

20,637

5,334

22,126

Industry Business

2,744

6,275

2,840

7,057

ICT Solution Business

155

146

277

239

Other2

—1—

Total

6,826

27,0598,453

29,423

Note: Amounts are based on sales prices.
(iii) Sales Status

Business segment

Three months ended
August 31, 2021
Amount(Millions of yen)Three months endedAugust 31, 2022

Share(%)

Amount(Millions of yen)

Share(%)

Transportation Business

4,752

70.4

4,017

63.7

Industry Business

1,883

27.9

1,983

31.5

ICT Solution Business

114

1.7

302

4.8

Other

20.0

10.0

Total

6,752

100.0

6,305

100.0

Note: Amounts are based on sales prices.