January 10, 2019
To Whom It May Concern
Company name: Toyo Denki Seizo K.K.
Representative: Kenzo Terashima, President(Code No. 6505 1st Section of theTokyo Stock Exchange)
Inquiries:
Takatoshi Otsuka, 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 2018 and Revised Full-Year Consolidated Earnings Forecasts
Toyo Denki Seizo K.K. (hereinafter “Toyo Denki”) today described details of differences between its
consolidated earnings forecasts for the first half (June 1, 2018 to November 30, 2018) of fiscal 2018, the year
ending May 31, 2019, originally disclosed on July 12, 2018 and the Company’s actual results for the sameperiod, made public today. Based on the first-half earnings results, the Company also announced revisions to
its full-year consolidated earnings forecasts for fiscal 2018, which were previously announced on July 12,
2018. The details of the earnings results, the aforesaid differences, and the revised forecasts are summarizedbelow.
1.

Differences between Consolidated Earnings Forecasts and Actual Results for the First Half of Fiscal
2018 (June 1, 2018 to November 30, 2018)
Net Income
Attributable toOwners of theParent

Net Incomeper Share(Yen)Net Sales

Operating
IncomeOrdinary
IncomeMillions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

19,000

(270)

(150)

(150)

(15.88)Actual results (B)19,635

(124)

(21)

146

15.62

Change (B − A)

635

146

129

296

Percent change (%)

3.3

---

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

18,655(232)

47

256

27.12

Previous forecast (A)(Reference) Businessresults for 1H, fiscal 2017
ended May 31, 2018

2.

Revisions to Full-Year Consolidated Earnings Forecasts (June 1, 2018 to May 31, 2019)

Previous forecast (A)Revised forecast (B)Change (B − A)
Percent change (%)(Reference) Businessresults for fiscal 2017
ended May 31, 2018

Net Income
Attributable to
Owners of the
ParentNet Income
per Share(Yen)Net Sales

OperatingIncome

Ordinary
IncomeMillions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

42,500

500

700

500

52.95

42,500

600

650

700

74.69

0100(50)200

0.0

20.0(7.1)

40.0

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

42,527

366

515

692

73.33

3.

Reasons for Differences and Revisions(1) Differences between the consolidated earnings forecasts and actual results for the first half
Net sales for the transportation systems business, the industrial systems business and theinformation equipment systems business were all above plan. Operating income also exceeded theplan in all business segments due to the following factors. In the transportation systems segment,
there was strong demand in the domestic market although the Company recorded lower earnings
associated with the high-speed railways in China due to the ongoing changeover to standard trains.
In the industrial systems segment, improvements in cost and delivery management were achieved
as a result of changes made to the business management structure and the Company also
experienced more-than-expected improvement effects from the integration of industrial works at
Shiga Ryuo Plant. In the information equipment systems segment, the primary contributing factor
was improved plant profitability. Ordinary income was above plan in proportion to higher operating
income. Net income attributable owners of the parent exceeded the plan as a result of higher
operating income and efforts made to reduce investment securities.
(2) Revisions to the full-year consolidated earnings forecasts
In light of the above, the Company expects net sales to be in line with the previously announced
forecast. As for operating income, improvements made in the first half will be reflected in the fullyear forecast. Ordinary income is likely to slightly fall short of the previously announced forecast
since the Company expects a foreign exchange loss caused by the depreciation of the Chinese yuan
under the recent economic conditions and a standstill in the performance of its joint venturesubsidiary in China against the plan. Net income attributable to owners of the parent is expected toexceed the previously announced forecast since Operating income will likely be higher and there
will be continued efforts to reduce investment securities.