Toyo Denki Seizo K K : Consolidated Financial Results for the Three Months Ended August 31, 2022

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:	[phone]

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)

(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	%
Three months ended		6,305		(6.6)	(266)		-	(3)		-	196	72.2
August 31, 2022
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 per
	share
				Yen			Yen
Three months ended				21.98			-
August 31, 2022
August 31, 2021				12.76			-

(2) Consolidated financial position

	Total assets	Net assets	Equity-to-asset ratio
	Millions of yen	Millions of yen	%
As of	47,673	22,644	47.5
August 31, 2022
May 31, 2022	46,916	22,012	46.9
Reference: Equity	As of August 31, 2022: ¥22,644 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	-
May 31, 2023
Fiscal year ending
May	31,	2023		0.00		-		30.00	30.00
(Forecast)
Note: 1.	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
Six months	ending	16,000		8.1	(80)	-	160		-	300	61.1	33.56
November 30, 2022
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)
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
4. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: None
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatement: None
5. Number of issued shares (common shares)
6. 1. 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

1. 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 an audit 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 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 Three Months Ended August 31, 2022

2. Quarterly Consolidated Financial Statements and Significant Notes Thereto

(1) Quarterly Consolidated Balance Sheet

			(Millions of yen)
	As of		As of
	May 31, 2022		August 31, 2022
Assets
Current assets
Cash and deposits		4,449	4,184
Notes and accounts receivable - trade, and contract
assets	12,091	12,211
Electronically recorded monetary claims - operating		1,136	1,102
Merchandise and finished goods	501	568
Work in process		3,077	3,451
Raw materials and supplies	2,688	2,722
Advance payments to suppliers		8	21
Accounts receivable	25	58
Other		212	265
Allowance for doubtful accounts	(1)	(1)
Total current assets		24,189	24,585
Non-current assets
Property, plant and equipment
Buildings and structures	10,326	9,953
Accumulated depreciation		(6,341)	(6,144)
Buildings and structures, net	3,985	3,808
Machinery, equipment and vehicles		8,185	8,195
Accumulated depreciation	(7,605)	(7,672)
Machinery, equipment and vehicles, net		579	523
Land	1,270	1,269
Construction in progress		7	7
Other	4,977	5,003
Accumulated depreciation		(4,497)	(4,542)
Other, net	479	461
Total property, plant and equipment		6,322	6,070
Intangible assets
Software		87	77
Other	14	14
Total intangible assets		101	91
Investments and other assets
Investment securities		12,471	13,297
Deferred tax assets	883	535
Other		2,953	3,100
Allowance for doubtful accounts	(6)	(6)
Total investments and other assets		16,302	16,925
Total non-current assets	22,726	23,087
Total assets		46,916	47,673

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

	As of		As of
	May 31, 2022		August 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade		1,610	1,681
Electronically recorded obligations - operating	4,205	3,852
Short-term borrowings		585	1,685
Accrued expenses	688	732
Income taxes payable		306	43
Accrued consumption taxes	82	81
Contract liabilities		47	84
Deposits received	190	272
Provision for bonuses for directors (and other officers)		6	9
Provision for bonuses	699	351
Provision for loss on orders received		970	934
Other	176	150
Total current liabilities		9,569	9,880
Non-current liabilities
Long-term borrowings		11,173	10,970
Long-term accounts payable - other	38	30
Retirement benefit liability		4,113	4,141
Other	6	6
Total non-current liabilities		15,333	15,148
Total liabilities	24,903	25,028
Net assets
Shareholders' equity
Share capital		4,998	4,998
Capital surplus	3,177	3,177
Retained earnings		11,122	11,050
Treasury shares	(1,282)	(1,282)
Total shareholders' equity		18,016	17,944
Accumulated other comprehensive income
Valuation difference on available-for-sale securities		3,913	4,530
Foreign currency translation adjustment	144	225
Remeasurements of defined benefit plans		(61)	(55)
Total accumulated other comprehensive income	3,996	4,700
Total net assets		22,012	22,644
Total liabilities and net assets		46,916	47,673