Toyo Denki Seizo K K : Consolidated Financial Results for the Nine Months Ended February 28, 2023

April 14, 2023

Consolidated Financial Results for the Nine Months Ended February 28, 2023

(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, Representative Director, President
Inquiries:	Jun Nukina, Operating Officer, General Manager, Management Planning Division
Telephone:	[phone]

Scheduled date to file quarterly securities report:	April 14, 2023
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 nine months ended February 28, 2023 (from June 1, 2022 to February 28, 2023)

(1) Consolidated operating results (cumulative)

(Percentages indicate year-on-year changes.)

			Net sales		Operating profit	Ordinary profit	Profit attributable to
				owners of parent
		Millions of yen		%	Millions of yen		%	Millions of yen		%	Millions of yen	%
	Nine months ended		20,744		(4.6)	89		－	488		791.7	432	47.5
	February 28, 2023
	February 28, 2022		21,744		(9.8)	(349)		－	54		(83.2)	293	(29.5)
	Note: Comprehensive income	For the nine months ended February 28, 2023: ¥908 million [-%]
			For the nine months ended February 28, 2022:¥(559) million [-%]
		Basic earnings per share	Diluted earnings per share
					Yen			Yen
	Nine months ended				48.40			－
	February 28, 2023
	February 28, 2022				32.80			－
(2) Consolidated financial position
			Total assets		Net assets		Equity-to-asset ratio
			Millions of yen	Millions of yen			%
	As of				47,925			22,652			47.3
	February 28, 2023
	May 31, 2022				46,916			22,012			46.9
	Reference: Equity	As of February 28, 2023:¥22,652 million
			As of May 31, 2022:¥22,012 million

2. Cash dividends

		Annual dividends per share
	First quarter-end	Second quarter-end	Third quarter-end		Fiscal year-end	Total
	Yen	Yen	Yen		Yen	Yen
Fiscal year ended	－	0.00	－		30.00	30.00
May 31, 2022
Fiscal year ending	－	0.00
May 31, 2023
Fiscal year ending
May 31, 2023			－		30.00	30.00
(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None

3. 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		Operating profit	Ordinary profit	Profit attributable to	Basic earnings per
		owners of parent	share
	Millions		%	Millions	%	Millions		%	Millions	%	Yen
	of yen		of yen	of yen		of yen
Fiscal year ending	34,000		12.7	450	161.8	700		(8.6)	800	－	89.48
May 31, 2023
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 in scope
	of consolidation):	None
	Newly included:	- companies (Company name)
	Excluded:	- companies (Company name)
Notes on changes in significant subsidiaries during the period
(2)	Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements	:
	None
Notes on adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements
(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

1. Changes in accounting estimates : None
2. Restatement : None

Notes on changes in accounting policies

(4) Number of issued shares (common shares)

(i) Total number of issued shares at the end of the period (including treasury shares)

As of February 28, 2023	9,735,000
As of May 31, 2022	9,735,000

(ii) Number of treasury shares at the end of the period

As of February 28, 2023

As of May 31, 2022

795,188

794,608

(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Nine months ended February 28, 2023

Nine months ended February 28, 2022

8,940,105

8,940,650

Notes on number of issued shares

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters
  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 various factors in the future. Please refer to "Explanation of Consolidated 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 of any discrepancy between this translated document and the Japanese original, the original shall prevail.

Toyo Denki Seizo K.K. (6505) Financial Results for the Nine Months Ended February 28, 2023

2. Quarterly Consolidated Financial Statements and Significant Notes Thereto

(1) Quarterly Consolidated Balance Sheet

				(Millions of yen)
			As of May 31, 2022	As of February 28, 2023
	Assets
	Current assets
	Cash and deposits		4,449	4,033
	Notes and accounts receivable - trade, and contract	12,091	12,318
	assets
	Electronically recorded monetary claims - operating		1,136	986
	Merchandise and finished goods	501	636
	Work in process		3,077	4,487
	Raw materials and supplies	2,688	2,769
	Advance payments to suppliers		8	23
	Accounts receivable	25	200
	Other		212	534
	Allowance for doubtful accounts	(1)	(1)
	Total current assets		24,189	25,989
	Non-current assets
	Property, plant and equipment
	Buildings and structures	10,326	9,953
	Accumulated depreciation		(6,341)	(6,273)
	Buildings and structures, net		3,985	3,680
	Machinery, equipment and vehicles		8,185	8,201
	Accumulated depreciation	(7,605)	(7,791)
	Machinery, equipment and vehicles, net		579	410
	Land	1,270	1,269
	Construction in progress		7	7
	Other	4,977	5,058
	Accumulated depreciation		(4,497)	(4,597)
	Other, net		479	460
	Total property, plant and equipment		6,322	5,828
	Intangible assets
	Software		87	74
	Other	14	13
	Total intangible assets		101	87
	Investments and other assets
	Investment securities		12,471	12,634
	Deferred tax assets	883	587
	Other		2,953	2,804
	Allowance for doubtful accounts	(6)	(7)
	Total investments and other assets		16,302	16,018
	Total non-current assets	22,726	21,935
	Total assets		46,916	47,925

Toyo Denki Seizo K.K. (6505) Financial Results for the Nine Months Ended February 28, 2023

(Millions of yen)

			As of May 31, 2022	As of February 28, 2023
	Liabilities
	Current liabilities
	Notes and accounts payable - trade		1,610	2,103
	Electronically recorded obligations - operating	4,205	4,299
	Short-term borrowings		585	1,585
	Accrued expenses	688	865
	Income taxes payable		306	24
	Accrued consumption taxes	82	32
	Contract liabilities		47	105
	Deposits received	190	190
	Provision for bonuses for directors (and other officers)		6	4
	Provision for bonuses	699	344
	Provision for loss on orders received		970	818
	Other	176	100
	Total current liabilities		9,569	10,472
	Non-current liabilities
	Long-term borrowings		11,173	10,677
	Long-term accounts payable - other	38	30
	Retirement benefit liability		4,113	4,087
	Other	6	4
	Total non-current liabilities		15,333	14,800
	Total liabilities	24,903	25,272
	Net assets
	Shareholders' equity
	Share capital		4,998	4,998
	Capital surplus	3,177	3,177
	Retained earnings		11,122	11,286
	Treasury shares	(1,282)	(1,282)
	Total shareholders' equity		18,016	18,180
	Accumulated other comprehensive income
	Valuation difference on available-for-sale securities		3,913	4,210
	Foreign currency translation adjustment	144	304
	Remeasurements of defined benefit plans		(61)	(43)
	Total accumulated other comprehensive income	3,996	4,472
	Total net assets		22,012	22,652
Total liabilities and net assets	46,916	47,925