Toyo Denki Seizo K K : Consolidated Financial Results for the Six Months Ended November 30, 2022

January 12, 2023

Consolidated Financial Results for the Six Months Ended November 30, 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, Representative Director, President
Inquiries:	Jun Nukina, Operating Officer, General Manager, Management Planning Division
Telephone:	[phone]

Scheduled date to file quarterly securities report:	January 13, 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 six months ended November 30, 2022 (from June 1, 2022 to November 30, 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	%
Six months ended		13,821		(6.6)	(80)		-	197		-	26	(85.7)
November 30, 2022
November 30, 2021		14,803		(11.5)	(362)		-	(83)		-	186	(58.8)
Note: Comprehensive income	For the six months ended November 30, 2022: ¥841 million [-%]
		For the six months ended November 30, 2021: ¥(695) million [-%]
	Basic earnings per share	Diluted earnings per
	share
				Yen			Yen
Six months ended				2.98			-
November 30, 2022
November 30, 2021				20.82			-

(2) Consolidated financial position

	Total assets	Net assets
	Millions of yen	Millions of yen
As of	48,314	22,585
November 30, 2022
May 31, 2022	46,916	22,012
Reference: Equity	As of November 30, 2022: ¥22,585 million
	As of May 31, 2022: ¥22,012 million

Equity-to-asset ratio

%

46.7

46.9

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)
(2)	Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements	:
	None

1. Changes in accounting policies, changes in accounting estimates, and restatement
2. 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
3. Number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares)

As of November 30, 2022	9,735,000
As of May 31, 2022	9,735,000

1. Number of treasury shares at the end of the period

As of November 30, 2022	794,988
As of May 31, 2022	794,608

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

Six months ended November 30, 2022

Six months ended November 30, 2021

8,940,204

8,940,722

• 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 Six Months Ended November 30, 2022

2. Quarterly Consolidated Financial Statements and Significant Notes Thereto

(1) Quarterly Consolidated Balance Sheet

				(Millions of yen)
		As of May 31, 2022		As of November 30, 2022
Assets
Current assets
Cash and deposits	4,449		4,061
Notes and accounts receivable - trade, and contract assets	12,091	13,523
Electronically recorded monetary claims - operating	1,136		906
Merchandise and finished goods	501	519
Work in process	3,077		3,834
Raw materials and supplies	2,688	2,566
Advance payments to suppliers	8		33
Accounts receivable	25	21
Other	212		353
Allowance for doubtful accounts	(1)	(1)
Total current assets	24,189		25,816
Non-current assets
Property, plant and equipment
Buildings and structures	10,326	9,949
Accumulated depreciation	(6,341)		(6,203)
Buildings and structures, net	3,985	3,745
Machinery, equipment and vehicles	8,185		8,193
Accumulated depreciation	(7,605)	(7,735)
Machinery, equipment and vehicles, net	579		458
Land	1,270	1,269
Construction in progress	7		13
Other	4,977	5,046
Accumulated depreciation	(4,497)		(4,590)
Other, net	479	455
Total property, plant and equipment	6,322		5,943
Intangible assets
Software	87		79
Other	14	13
Total intangible assets	101		93
Investments and other assets
Investment securities	12,471		13,184
Deferred tax assets	883	534
Other	2,953		2,749
Allowance for doubtful accounts	(6)	(7)
Total investments and other assets	16,302		16,460
Total non-current assets	22,726	22,497
Total assets		46,916		48,314

Toyo Denki Seizo K.K. (6505) Financial Results for the Six Months Ended November 30, 2022 (Millions of yen)

		As of May 31, 2022		As of November 30, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade	1,610		1,954
Electronically recorded obligations - operating	4,205	3,903
Short-term borrowings	585		1,785
Accrued expenses	688	794
Income taxes payable	306		189
Accrued consumption taxes	82	43
Contract liabilities	47		78
Deposits received	190	194
Provision for bonuses for directors (and other officers)	6		3
Provision for bonuses	699	685
Provision for loss on orders received	970		883
Other	176	136
Total current liabilities	9,569		10,652
Non-current liabilities
Long-term borrowings	11,173		10,881
Long-term accounts payable - other	38	30
Retirement benefit liability	4,113		4,158
Other	6	5
Total non-current liabilities	15,333		15,076
Total liabilities	24,903	25,728
Net assets
Shareholders' equity
Share capital	4,998		4,998
Capital surplus	3,177	3,177
Retained earnings	11,122		10,880
Treasury shares	(1,282)	(1,282)
Total shareholders' equity	18,016		17,774
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	3,913		4,556
Foreign currency translation adjustment	144	304
Remeasurements of defined benefit plans	(61)		(49)
Total accumulated other comprehensive income	3,996	4,811
Total net assets	22,012		22,585
Total liabilities and net assets		46,916	48,314