Toyo Denki Seizo K K : Summary of Consolidated Business Results for the First Three Quarters of Fiscal 2019NEW

Summary of Consolidated Business Results for the First Three Quarters of Fiscal 2019

				April 10, 2020
Company Name:	Toyo Denki Seizo K.K.	Stock Exchange: 1st Section of the Tokyo Stock Exchange
Stock Code:	6505	URL	https://www.toyodenki.co.jp
Representative:	Kenzo Terashima, President
Inquiries:	Takatoshi Ohtsuka, General Manager, Management Planning Division	TEL: [phone]

Scheduled date of submission of quarterly financial report	:	April 13, 2020
Scheduled date of commencement of dividend payments	:	-
Preparation of quarterly financial report supplemental explanatory materials	:	Yes
Holding of quarterly financial results briefing	:	No

(Note: Amounts less than one million yen in financial statements and supplementary data are rounded down.)

1. Consolidated Business Results for the First Three Quarters of Fiscal 2019 (June 1, 2019 to February 29, 2020)

1. Consolidated Operating Results

(Percentage figures show year-on-year increase or decrease.)

	Net Sales		Operating Income		Ordinary Income		Net Income Attributable to
				Owners of the Parent
	Millions of yen		%	Millions of yen		%	Millions of yen		%	Millions of yen	%
3Q Fiscal 2019	28,621		(3.2)	472		-	687		-	693	294.2
3Q Fiscal 2018	29,553		5.7	(133)		-	(54)		-	175	513.1

(Note) Comprehensive income:	3Q Fiscal 2019	(1,250) million yen [-%]
		3Q Fiscal 2018	(428) million yen [-%]
	Net Income per Share	Diluted Net Income
		per Share
		Yen		Yen
3Q Fiscal 2019		77.54		-
3Q Fiscal 2018		19.03		-

1. Consolidated Financial Position

		Total Assets		Net Assets	Shareholders' Equity
			Ratio (%)
		Millions of yen			Millions of yen		%
As of February 29, 2020		54,492			23,285		42.7
As of May 31, 2019		58,001			24,804		42.8
(Reference) Shareholders' equity	As of February 29, 2020	23,285 million yen
		As of May 31, 2019		24,804 million yen

2. Dividend Information

				Annual Dividend (Yen)
		1Q	Interim			3Q		Fiscal Year-End	Total
		Yen	Yen			Yen		Yen	Yen
Fiscal 2018		-	0.00			-		30.00	30.00
Fiscal 2019		-	0.00			-
Fiscal 2019 (Forecast)								30.00	30.00

(Note) Revisions to the most recently announced dividend forecasts: No

3. Consolidated Performance Forecast for Fiscal 2019 (June 1, 2019 to May 31, 2020)

(Percentage figures show year-on-year increase or decrease.)

								Net Income		Net Income per
	Net Sales		Operating Income	Ordinary Income	Attributable to Owners
		Share (Yen)
								of the Parent
	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen		%	Yen
Full year	42,000		2.0	900	61.4	1,100	121.8	900		30.4	100.65

(Note) Revisions to the most recently announced performance forecast: No

• 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 the company)

Excluded: - companies (name of the company)

1. Application of special accounting practices for the preparation of quarterly consolidated financial statement: No
2. Changes in accounting policies, changes in accounting estimates, and restatement
3. 1. Changes in accounting policies in accordance with revisions to accounting standards and related practices: No

1. 1. Any changes other than (a) above: No
   2. Changes in accounting estimates: No
   3. Restatement: No
2. Shares outstanding (common stock)
3. 1. Number of shares outstanding as of the end of the period (including treasury stock):
   2. Number of shares of treasury stock as of the end of the period:
   3. Average number of shares for the period (fiscal year-to-date):

3Q Fiscal 2019	9,735,000 shares	Fiscal 2018	9,735,000 shares
3Q Fiscal 2019	793,343 shares	Fiscal 2018	792,966 shares
3Q Fiscal 2019	8,941,867 shares	3Q Fiscal 2018	9,242,854 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 of currently available information. Toyo Denki Seizo K. K. (hereinafter Toyo Denki) cautions readers that due to a variety of factors actual results may differ materially from forecasts. Please refer to "Explanation of Consolidated Performance Forecast and Other Forward-looking Information" in the Accompanying 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 consolidated business results, which has been prepared in accordance with accounting principles generally accepted in Japan, for reference purpose only.

Summary of Consolidated Business Results for the First Three Quarters of Fiscal 2019

Toyo Denki Seizo K.K. (6505)

2. Consolidated Financial Statements

(1) Consolidated Balance Sheets

				(Millions of yen)
			Fiscal 2018	3Q Fiscal 2019
			(As of May 31, 2019)	(As of February 29, 2020)
	Assets
	Current assets
	Cash and cash equivalents		2,240	1,806
	Trade notes and accounts receivable	14,192	14,878
	Electronically recorded monetary claims - operating		1,443	1,085
	Products and finished goods	991	766
	Work in process		3,504	4,052
	Raw materials and stored goods	3,074	2,958
	Advances		47	26
	Other accounts receivable	461	119
	Other		64	280
	Allowance for doubtful accounts	(1)	(0)
	Total current assets		26,019	25,973
	Fixed assets
	Property, plant and equipment
	Buildings and structures	12,210	12,265
	Accumulated depreciation		(5,119)	(5,410)
	Buildings and structures, net	7,090	6,854
	Machinery and equipment		8,174	8,193
	Accumulated depreciation	(6,732)	(7,023)
	Machinery and equipment, net		1,441	1,170
	Land	1,301	1,301
	Construction in progress		31	50
	Other	4,410	4,576
	Accumulated depreciation		(3,592)	(3,838)
	Other, net	818	738
	Total property, plant and equipment		10,683	10,115
	Intangible assets
	Software		677	515
	Software in progress		-	14
	Other		14	14
	Total intangible assets	692	544
	Investments and other assets
	Investment securities	17,856	14,805
	Deferred tax assets		164	149
	Other	2,598	2,916
	Allowance for doubtful accounts		(12)	(12)
	Total investments and other assets	20,606	17,858
	Total fixed assets		31,982	28,518
	Total assets		58,001	54,492

Summary of Consolidated Business Results for the First Three Quarters of Fiscal 2019

Toyo Denki Seizo K.K. (6505)

(Millions of yen)

			Fiscal 2018	3Q Fiscal 2019
			(As of May 31, 2019)	(As of February 29, 2020)
	Liabilities
	Current liabilities
	Trade notes and accounts payable		2,670	2,747
	Electronically recorded obligations - operating	5,944	5,660
	Short-term debt		2,462	2,977
	Accrued expenses	678	805
	Income taxes payable		320	172
	Consumption and other taxes payable	579	74
	Advances received		59	50
	Deposits received	216	200
	Reserve for directors' bonuses		38	35
	Reserve for employees' bonuses	819	421
	Reserve for order losses		570	582
	Other	402	154
	Total current liabilities		14,763	13,882
	Long-term liabilities
	Long-term debt		12,961	12,433
	Long-term payables	20	20
	Deferred tax liabilities		1,554	857
	Net defined benefit liability	3,893	4,009
	Other		4	3
	Total long-term liabilities	18,433	17,324
	Total liabilities		33,197	31,207
	Net assets
	Shareholders' equity
	Capital stock	4,998	4,998
	Capital surplus		3,177	3,177
	Retained earnings	10,797	11,222
	Treasury stock		(1,280)	(1,280)
	Total shareholders' equity	17,693	18,117
	Accumulated other comprehensive income
	Unrealized holding gains on available-for-sale securities	7,176	5,285
	Foreign currency translation adjustments		126	39
	Adjustments of defined benefit plans	(192)	(156)
	Total accumulated other comprehensive income		7,110	5,167
	Total net assets	24,804	23,285
	Total liabilities and net assets		58,001	54,492

Summary of Consolidated Business Results for the First Three Quarters of Fiscal 2019

Toyo Denki Seizo K.K. (6505)

1. Consolidated Statements of Income and Comprehensive Income Consolidated Statements of Income for the First Three Quarters

				(Millions of yen)
			3Q Fiscal 2018	3Q Fiscal 2019
			(June 1, 2018 to	(June 1, 2019 to
			February 28, 2019)	February 29, 2020)
	Net Sales		29,553	28,621
	Cost of sales	24,252	22,788
	Gross profit		5,301	5,833
	Selling, general and administrative expenses	5,434	5,361
	Operating income (loss)		(133)	472
	Non-operating income
	Interest income		1	1
	Dividend income	233	223
	Equity in profit of unconsolidated subsidiaries and affiliates		-	40
	Insurance claim income related to disaster		-	92
	Miscellaneous income		36	35
	Total non-operating income	271	393
	Non-operating expenses
	Interest expenses	110	67
	Equity in loss of unconsolidated subsidiaries and affiliates		11	-
	Loss on disposal of fixed assets	3	0
	Foreign exchange losses		21	30
	Disaster recover expenses		-	68
	Miscellaneous loss		45	10
	Total non-operating expenses	192	177
	Ordinary income (loss)		(54)	687
	Extraordinary income
	Gain on sales of investment securities		571	447
	Total extraordinary income	571	447
	Extraordinary loss
	Expenses for commemorative events of the 100th anniversary	53	-
	Total extraordinary losses		53	-
	Income before income taxes	463	1,135
	Income taxes: Current		195	301
	Income taxes: Deferred	91	140
	Total income taxes		287	442
	Net income	175	693
	Net Income Attributable to Owners of the Parent		175	693

Summary of Consolidated Business Results for the First Three Quarters of Fiscal 2019

Toyo Denki Seizo K.K. (6505)

Consolidated Statements of Comprehensive Income for the First Three Quarters

			(Millions of yen)
	3Q Fiscal 2018		3Q Fiscal 2019
	(June 1, 2018 to		(June 1, 2019 to
	February 28, 2019)		February 29, 2020)
Net income		175	693
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

(590)		(1,891)
5		(11)
37		35
(56)	(76)

	Total other comprehensive income		(604)	(1,943)
	Comprehensive income	(428)	(1,250)
	Comprehensive income attributable to:
	Owners of the parent	(428)	(1,250)
	Non-controlling interests		-	-

Summary of Consolidated Business Results for the First Three Quarters of Fiscal 2019

Toyo Denki Seizo K.K. (6505)

1. 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 Three Quarters of Fiscal 2018 (June 1, 2018 to February 28, 2019) Information regarding Net Sales and Income (Loss) by Reporting Segment

										(Millions of yen)
			Reporting Segment						Amount
											Recorded on
						Information	Other		Adjustment		Quarterly
			Transportation	Industrial		Total	Amount		Consolidated
				Equipment	(Note 1)
			Systems	Systems			(Note 2)		Statements
				Systems				of Income
											(Note 3)
Net sales
Sales to third parties	19,804	8,638		1,098	11	29,553	-		29,553
Inter-segment sales	37	0		-	433	472	(472)		-
and transfers
	Total		19,841	8,639		1,098	445	30,025	(472)		29,553
Segment profit		1,457	269		213	25	1,965	(2,099)		(133)
Notes:	1.	The "Other" segment includes operations not included in reporting segments such as the dispatch of temporary staff.

1. The segment profit adjustment amount is a loss of 2,099 million yen. This is comprised of an elimination of inter- segment sales and transfer amount of a loss of 1 million yen and corporate expenditure (a loss of 2,097 million yen) that is not allocated to each reporting segment. Corporate expenditure is primarily comprised of selling, general and administrative expenses, as well as research and development costs that are not allocated to each reporting segment.
2. Segment profit has been adjusted with operating loss recorded under the quarterly consolidated statements of income.

First Three Quarters of Fiscal 2019 (June 1, 2019 to February 29, 2020)

Information regarding Net Sales and Income (Loss) by Reporting Segment

										(Millions of yen)
			Reporting Segment						Amount
											Recorded on
						Information	Other		Adjustment		Quarterly
			Transportation	Industrial		Total	Amount		Consolidated
				Equipment	(Note 1)
			Systems	Systems			(Note 2)		Statements
				Systems				of Income
											(Note 3)
Net sales
Sales to third parties	17,610	9,667		1,339	4	28,621	-		28,621
Inter-segment sales	4	0		-	391	396	(396)		-
and transfers
	Total		17,615	9,667		1,339	395	29,018	(396)		28,621
Segment profit		1,459	772		388	5	2,627	(2,154)		472
Notes:	1.	The "Other" segment includes operations not included in reporting segments such as the dispatch of temporary staff.

1. The segment profit adjustment amount is a loss of 2,154 million yen. This is comprised of an elimination of inter- segment sales and transfer amount of a loss of 0 million yen and corporate expenditure (a loss of 2,154 million yen) that is not allocated to each reporting segment. Corporate expenditure is primarily comprised of selling, general and administrative expenses, as well as research and development costs that are not allocated to each reporting segment.
2. Segment profit has been adjusted with operating income recorded under the quarterly consolidated statements of income.

Summary of Consolidated Business Results for the First Three Quarters of Fiscal 2019

Toyo Denki Seizo K.K. (6505)

3. Supporting Materials for the Financial Results

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

			3Q Fiscal 2018		3Q Fiscal 2019
	Business segment	(June 1, 2018 to February, 28 2019)	(June 1, 2019 to February 29, 2020)
	Amount		Share	Amount		Share
			(Millions of yen)		(%)	(Millions of yen)		(%)
	Transportation Systems	19,232		67.6	17,540		61.8
	Industrial Systems	8,343		29.3	9,740		34.3
Information Equipment Systems	859		3.0	1,115		3.9
		Other	-		-	-		-
		Total	28,435		100.0	28,397		100.0
Notes:	1.	Amounts are based on sales prices.

1. 2. Amounts are exclusive of consumption and other taxes.

2. Status of Orders Received

			3Q Fiscal 2018	3Q Fiscal 2019
	Business segment	(June 1, 2018 to February 28, 2019)	(June 1, 2019 to February 29, 2020)
	Orders Received	Balance	Orders Received	Balance
			(Millions of yen)	(Millions of yen)	(Millions of yen)	(Millions of yen)
	Transportation Systems	16,997	20,947	20,533	25,522
	Industrial Systems	9,953	8,004	8,274	5,790
Information Equipment Systems	914	343	1,355	716
		Other	11	-	4	-
		Total	27,877	29,296	30,167	32,029
Notes:	1.	Amounts are based on sales prices.

1. 2. Amounts are exclusive of consumption and other taxes.

2. Sales Status

			3Q Fiscal 2018		3Q Fiscal 2019
	Business segment	(June 1, 2018 to February, 28 2019)	(June 1, 2019 to February 29, 2020)
	Amount		Share	Amount		Share
			(Millions of yen)		(%)	(Millions of yen)		(%)
	Transportation Systems	19,804		67.0	17,610		61.5
	Industrial Systems	8,638		29.2	9,667		33.8
Information Equipment Systems	1,098		3.7	1,339		4.7
		Other	11		0.0	4		0.0
		Total	29,553		100.0	28,621		100.0
Notes:	1.	Amounts are based on sales prices.

2. Amounts are exclusive of consumption and other taxes.