Toyo Denki Seizo K K : Summary of Consolidated Business Results for the First Quarter of Fiscal 2020

Summary of Consolidated Business Results for the First Quarter of Fiscal 2020

			October 12, 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	Akira Watanabe, President
Inquiries:	Toshihito Nakanishi, Operating Officer, General Manager, Management Planning Department
	TEL: [phone]

Scheduled date of submission of quarterly financial report	:	October 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 Quarter of Fiscal 2020 (June 1, 2020 to August 31, 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	%
1Q Fiscal 2020	7,848		(11.2)	169		-	265		-	315	245.9
1Q Fiscal 2019	8,841		1.7	(51)		-	(39)		-	91	-

(Note) Comprehensive income:	1Q Fiscal 2020	(815) million yen [-%]
		1Q Fiscal 2019	(171) million yen [-%]
	Net Income per Share	Diluted Net Income
		per Share
		Yen		Yen
1Q Fiscal 2020		35.24		-
1Q Fiscal 2019		10.19		-

1. Consolidated Financial Position

		Total Assets		Net Assets	Shareholders' Equity
				Ratio
		Millions of yen		Millions of yen		%
As of August 31, 2020		54,063		23,099		42.7
As of May 31, 2020		55,165		24,183		43.8
(Reference) Shareholders' equity:	As of August 31, 2020 23,099 million yen
		As of May 31, 2020	24,183 million yen

2. Dividend Information

					Annual Dividend
		1Q		Interim	3Q	Fiscal Year-End	Total
			Yen	Yen	Yen	Yen	Yen
Fiscal 2019		-	0.00	-	30.00	30.00
Fiscal 2020		-
Fiscal 2020 (Forecast)			-	-	-	-

(Notes) 1. Revisions to the most recently announced dividend forecast: No

2. The dividend forecast for Fiscal 2020 is currently undecided.

3. Consolidated Performance Forecast for Fiscal 2020 (June 1, 2020 to May 31, 2021)

Amid the novel coronavirus spreading globally, some orders received by the Company were also affected, which makes it difficult to reasonably quantify the degree of the impact on the Company's performance. Therefore, the consolidated performance forecast for Fiscal 2020 is undecided at this moment. As soon as it becomes possible to reasonably make a performance forecast going forward, the Company will announce such immediately.

(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
   (a) 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):

1Q Fiscal 2020	9,735,000 shares	Fiscal 2019	9,735,000 shares
1Q Fiscal 2020	793,528 shares	Fiscal 2019	793,403 shares
1Q Fiscal 2020	8,941,537 shares	1Q Fiscal 2019	8,942,033 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 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 of 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 Quarter of Fiscal 2020

Toyo Denki Seizo K.K. (6505)

2. Consolidated Financial Statements

(1) Consolidated Balance Sheets

				(Millions of yen)
			Fiscal 2019	1Q Fiscal 2020
			(As of May 31, 2020)	(As of August 31, 2020)
	Assets
	Current assets
	Cash and cash equivalents		3,293	4,047
	Trade notes and accounts receivable	14,135	13,936
	Electronically recorded monetary claims - operating		1,538	940
	Products and finished goods	756	846
	Work in process		3,424	3,767
	Raw materials and stored goods	2,996	3,362
	Advances		13	17
	Other accounts receivable	39	94
	Other		86	95
	Allowance for doubtful accounts	(0)	(1)
	Total current assets		26,284	27,106
	Fixed assets
	Property, plant and equipment
	Buildings and structures	12,269	12,280
	Accumulated depreciation		(5,515)	(5,618)
	Buildings and structures, net	6,753	6,661
	Machinery and equipment		8,179	8,273
	Accumulated depreciation	(7,120)	(7,208)
	Machinery and equipment, net		1,059	1,064
	Land	1,301	1,301
	Construction in progress		86	90
	Other	4,654	4,716
	Accumulated depreciation		(3,929)	(3,999)
	Other, net	724	716
	Total property, plant and equipment		9,925	9,834
	Intangible assets
	Software		462	411
	Software in progress	14	14
	Other		14	14
	Total intangible assets	490	440
	Investments and other assets
	Investment securities	15,434	13,647
	Deferred tax assets		170	192
	Other	2,865	2,848
	Allowance for doubtful accounts		(6)	(6)
	Total investments and other assets	18,463	16,681
	Total fixed assets		28,880	26,957
	Total assets	55,165	54,063

Summary of Consolidated Business Results for the First Quarter of Fiscal 2020 Toyo Denki Seizo K.K. (6505)

(Millions of yen)

				Fiscal 2019	1Q Fiscal 2020
				(As of May 31, 2020)	(As of August 31, 2020)
	Liabilities
	Current liabilities
	Trade notes and accounts payable			2,224	1,930
	Electronically recorded obligations - operating	5,877	5,766
	Short-term debt			2,207	3,885
	Accrued expenses	606	590
	Income taxes payable			334	81
	Consumption and other taxes payable	310	62
	Advances received			45	74
	Deposits received	198	339
	Reserve for directors' bonuses			36	9
	Reserve for employees' bonuses	876	451
	Reserve for order losses			732	850
	Other	218	240
	Total current liabilities			13,669	14,281
	Long-term liabilities
	Long-term debt			12,344	12,140
	Long-term payables	25	17
	Deferred tax liabilities			930	475
	Net defined benefit liability	4,010	4,044
	Other			3	3
	Total long-term liabilities	17,312	16,682
	Total liabilities			30,981	30,964
	Net assets
	Shareholders' equity
	Capital stock	4,998	4,998
	Capital surplus			3,177	3,177
	Retained earnings	11,610	11,657
	Treasury stock			(1,280)	(1,281)
	Total shareholders' equity	18,505	18,552
	Accumulated other comprehensive income
	Unrealized holding gains on available-for-sale securities	5,727	4,593
	Foreign currency translation adjustments			79	71
	Adjustments of defined benefit plans	(129)	(118)
	Total accumulated other comprehensive income			5,677	4,546
	Total net assets	24,183	23,099
	Total liabilities and net assets			55,165	54,063