Summary of Consolidated Business Results for the First Half of Fiscal 2020
January 12, 2021
Toyo Denki Seizo K.K.
Stock Exchange: 1st Section of the Tokyo Stock Exchange
6505
URL
https://www.toyodenki.co.jp
Akira Watanabe, President
Toshihito Nakanishi, Operating Officer, General Manager, Management Planning Department
TEL: +81-3-5202-8122
Scheduled date of submission of quarterly financial report: January 13, 2021
Scheduled date of commencement of dividend payments: —Preparation of quarterly financial report supplemental explanatory materials: Yes
Holding of quarterly financial results briefing: No
Company Name:
Stock Code:
Representative
Inquiries:(Note: Amounts less than one million yen in financial statements and supplementary data are rounded down.)

1.

Consolidated Business Results for the First Half of Fiscal 2020 (June 1, 2020 to November 30, 2020)(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%

16,72019,392(13.8)
(1.2)

177
302

(41.3)
—355
380

(6.7)
—451
470

(4.1)
221.4

1H Fiscal 2020
1H Fiscal 2019

(Note) Comprehensive income:

1H Fiscal 2020
1H Fiscal 2019

Net Income per Share

1H Fiscal 2020
1H Fiscal 2019(2)(784) million yen [-%]
1,054 million yen [-%]

Diluted Net Incomeper ShareYenYen

50.49
52.63

——

Consolidated Financial Position
Total Assets(Reference) Shareholders’ equity:

Net Assets

Shareholders’ Equity
Ratio

Millions of yen

Millions of yen%

53,87855,165

23,13024,18342.9
43.8

As of November 30, 2020
As of May 31, 2020

2.

Net Income Attributable toOwners of the Parent

Ordinary Income

As of November 30, 2020
As of May 31, 2020

23,130 million yen
24,183 million yen

Dividend Information
Annual Dividend (Yen)
1Q

Fiscal 2019
Fiscal 2020

Interim3Q

Fiscal Year-EndTotal

YenYen

Yen

Yen

Yen

——0.00
0.00

—

30.00

30.00

—

30.00

30.00

Fiscal 2020 (Forecast)(Note) Revisions to the most recently announced dividend forecast: Yes

3.

Consolidated Performance Forecast for Fiscal 2020 (June 1, 2020 to May 31, 2021)(Percentage figures show year-on-year increase or decrease.)
Net Sales
Millions of yen

Operating Income%Millions of yen%

Net Income Attributableto Owners of the Parent

Ordinary IncomeNet Income perShare

Millions of yen%

Millions of yen%

Yen

Full year
34,000 (13.0)
250 (76.6)500(Note) Revisions to the most recently announced performance forecast: No(58.6)

700(35.3)

78.28* 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 company)
Excluded: - companies (name of 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 end of
the period (including treasury stock):

1H Fiscal 2020

9,735,000 sharesFiscal 2019

9,735,000 shares(b) Number of shares of treasury stock as of theend of the period:

1H Fiscal 2020

793,678 sharesFiscal 2019

793,403 shares(c) Average number of shares for the period(fiscal year-to-date):

1H Fiscal 2020

8,941,457 shares

1H Fiscal 2019

8,941,949 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 for business results presented in this document are based on management’s assumptions and beliefs in light ofcurrently available information. Toyo Denki cautions readers that due to a variety of factors actual results may differ materiallyfrom forecasts. Please refer to “Explanation of Consolidated Performance Forecast and Other Forward-looking Information” in theAccompanying 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 of consolidated business results, which has been prepared inaccordance with accounting principles generally accepted in Japan, for reference purpose only.

Summary of Consolidated Business Results for the First Half of Fiscal 2020
Toyo Denki Seizo K.K. (6505)

2.

Consolidated Financial Statements(1)

Consolidated Balance Sheets(Millions of yen)
Fiscal 2019
(As of May 31, 2020)

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
Other
Allowance 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, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Software
Software in progress
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
OtherAllowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets

1H Fiscal 2020
(As of November 30, 2020)

3,293
14,135
1,538756
3,424
2,996133986(0)26,284

4,661
14,232
783
731
3,472
3,213
25
59
151
(1)
27,32912,269(5,515)
6,753
8,179(7,120)
1,059
1,301
86
4,654
(3,929)724
9,925

12,286(5,721)6,564
8,300(7,301)
998
1,301
55
4,783
(4,067)
715
9,636

462
14
14
490

384
14
14
413

15,434
170
2,865
(6)
18,46328,88055,165

13,340
190
2,975
(6)
16,49926,54953,878

Summary of Consolidated Business Results for the First Half of Fiscal 2020
Toyo Denki Seizo K.K. (6505)(Millions of yen)
Fiscal 2019(As of May 31, 2020)
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
Other
Total current liabilities
Long-term liabilities
Long-term debt
Long-term payables
Deferred tax liabilities
Net defined benefit liability
Other
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

1H Fiscal 2020
(As of November 30, 2020)

2,224
5,877
2,207
606
334
310
45
198
36
876
732
218
13,669

1,997
5,309
3,585
629
374
34
67
201
18
911
920
301
14,352

12,34425
930
4,010
317,31230,981

12,051
17
291
4,031
3
16,39630,748

4,998
3,177
11,610(1,280)18,505

4,998
3,177
11,794(1,281)
18,688

5,727
79
(129)
5,677
24,18355,165

4,468
80
(107)
4,441
23,13053,878

Summary of Consolidated Business Results for the First Half of Fiscal 2020
Toyo Denki Seizo K.K. (6505)(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income for the First Half
(Millions of yen)
1H Fiscal 2019
1H Fiscal 2020
(June 1, 2019 to(June 1, 2020 toNovember 30, 2019)
November 30, 2020)Net sales
19,392
16,720
Cost of sales
15,48513,003Gross profit
3,907
3,716
Selling, general and administrative expenses
3,605
3,539
Operating income
302
177
Non-operating income
Interest income
00
Dividend income164
154
Equity in profit of unconsolidated subsidiaries and affiliates—
23
Insurance claim income related to disaster—
34
Miscellaneous income
26
29
Total non-operating income
192242
Non-operating expenses
Interest expenses
4633
Equity in loss of unconsolidated subsidiaries and affiliates
10—
Loss on disposal of fixed assets00Foreign exchange losses
3117
Miscellaneous loss
2413
Total non-operating expenses
114
65
Ordinary income
380
355
Extraordinary income
Gain on sales of investment securities
412
407
Total extraordinary income
412
407
Income before income taxes
793
762
Income taxes: Current
283
423
Income taxes: Deferred
38(112)
Total income taxes
322
311
Net income
470
451
Net income attributable to owners of the parent
470
451

Summary of Consolidated Business Results for the First Half of Fiscal 2020
Toyo Denki Seizo K.K. (6505)
Consolidated Statements of Comprehensive Income for the First Half
(Millions of yen)
1H Fiscal 2019
(June 1, 2019 toNovember 30, 2019)
Net income
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

1H Fiscal 2020
(June 1, 2020 toNovember 30, 2020)
470451603(9)23(1,258)
31
22(33)

(30)

583
1,054

(1,236)(784)

1,054—(784)—Summary of Consolidated Business Results for the First Half of Fiscal 2020
Toyo Denki Seizo K.K. (6505)(3)

Consolidated Statements of Cash Flows(Millions of yen)
1H Fiscal 2019
(June 1, 2019 toNovember 30, 2019)

Cash flow from operating activities
Income before income taxes
Depreciation and amortization
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in reserve for employees’ bonuses
Increase (decrease) in net defined benefit liability
Increase (decrease) in reserve for order losses
Interest and dividends income
Interest expenses
Insurance claim income related to disaster
Loss (gain) on sales of investment securities
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in advances received
Increase (decrease) in accrued expenses
Decrease (increase) in consumption and other taxes receivable
Increase (decrease) in consumption and other taxes payable
OtherSubtotal
Interest and dividends income received
Interest expenses paid
Refund of (Payments for) corporate and other taxes
Cash flow from operating activities
Cash flow from investing activities
Purchases of property, plant and equipment
Purchases of intangible assets
Purchases of investment securities
Proceeds from sales of investment securities
Payments of loans receivable
Other
Cash flow from investing activities
Cash flow from financing activities
Increase (decrease) in short-term loans payable, net
Repayment of long-term debt
Purchase of treasury stock
Cash dividends paid
Other
Cash flow from financing activities
Effect of exchange rate change on cash and cash equivalents
Increase (decrease) in cash and cash equivalents
Balance of cash and cash equivalents at the beginning of the period
Balance of cash and cash equivalents at the end of the period

1H Fiscal 2020
(June 1, 2020 toNovember 30, 2020)

793
717
(1)
8
74(81)
(165)
46
—
(412)
(784)
22(261)
11
38
(30)
(512)
(86)
(625)
165
(52)
(238)
(749)

762
673
1
34
21
192
(154)
33
(34)
(407)
635
(244)
(771)
21
24
—
(276)
(39)
472
154(34)
(374)
218

(363)
(8)
(7)
1,073
(26)
(352)
315

(211)(19)
(96)
693
(15)
(28)
322

268(239)
(0)
(267)
(0)
(239)
11(662)
2,240
1,577

1,416(324)
(0)
(267)
(0)
822
3
1,368
3,293
4,661

Summary of Consolidated Business Results for the First Half of Fiscal 2020
Toyo Denki Seizo K.K. (6505)(4)

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]
First Half of Fiscal 2019 (June 1, 2019 to November 30, 2019)
Information regarding Net Sales and Income (Loss) by Reporting Segment(Millions of yen)Transportation
Systems

IndustrialSystems

Information
Equipment
Systems

Other(Note 1)

Total

Adjustment
Amount(Note 2)

AmountRecorded on
Consolidated
Statementsof Income(Note 3)

12,139

6,459

790

3

19,392—

19,392

4

0

—

272

277(277)—

12,144

6,460

790

275

19,670(277)

19,392

1,017

488

247

4

1,756

(1,454)302

Reporting Segment

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

1.
2.

3.

The “Other” segment includes operations not included in reporting segments such as the dispatch of temporary staff.
The segment profit adjustment amount is a loss of 1,454 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 1,454 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 has been adjusted with operating income recorded under the quarterly consolidated statements ofincome.

First Half of Fiscal 2020 (June 1, 2020 to November 30, 2020)
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
Consolidated
Statementsof Income(Note 3)

11,078

5,035

604

2

16,720—16,720

100—

178

189

(189)

—

11,089

5,035

604

181

16,910(189)

16,720

1,065

375

175

(19)

1,596

(1,419)177

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 1,419 million yen. This is comprised of an elimination ofinter-segment sales and transfer amount of 0 million yen and corporate expenditure (a loss of 1,420 million yen) thatis 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 income recorded under the quarterly consolidated statementsof income.

Summary of Consolidated Business Results for the First Half of Fiscal 2020
Toyo Denki Seizo K.K. (6505)

3.

Other

(1)

Status of Production, Orders, and Sales(a) Production Status

Business segment

1H Fiscal 2019
(June 1, 2019 to November 30, 2019)
Amount(Millions of yen)

1H Fiscal 2020
(June 1, 2020 to November 30, 2020)

Share(%)

Amount(Millions of yen)

Share(%)

Transportation Systems

11,96063.2

10,92770.2

Industrial Systems

6,172

32.6

4,403

28.3

Information Equipment Systems

803

4.2

240

1.5

Other————

Total

18,935100.0

15,572100.0(Notes)1.
2.

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

(b) Status of Orders Received

Business segment

1H Fiscal 2019
(June 1, 2019 to November 30, 2019)
Orders Received(Millions of yen)

1H Fiscal 2020
(June 1, 2020 to November 30, 2020)

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

Balance(Millions of yen)Transportation Systems

12,85923,318

8,661

21,743

Industrial Systems

6,711

7,435

5,518

5,841

Information Equipment Systems

767

678

210

146

Other3—

2—Total20,341

31,432

14,39327,731(Notes)1.
2.

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

(c) Sales Status

Business segment

1H Fiscal 2019
(June 1, 2019 to November 30, 2019)
Amount(Millions of yen)

1H Fiscal 2020
(June 1, 2020 to November 30, 2020)

Share(%)

Amount(Millions of yen)

Share(%)

Transportation Systems

12,13962.6

11,07866.3Industrial Systems

6,459

33.3

5,035

30.1

Information Equipment Systems

790

4.1

604

3.6

Other

30.0

2

0.0

Total

19,392100.0

16,720100.0(Notes)1.
2.

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