Toyo Denki Seizo K K : Consolidated Financial Results for the Fiscal Year Ended May 31,2023

July 13, 2023

Consolidated Financial Results for the Fiscal Year Ended May 31,2023

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

Scheduled date of annual general meeting of shareholders:	August 29, 2023
Scheduled date to commence dividend payments:	August 30, 2023
Scheduled date to file annual securities report:	August 30, 2023
Preparation of supplementary material on financial results:	Yes
Holding of financial results briefing:	Yes

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended May 31, 2023 (from June 1, 2022 to May 31, 2023)

(1) Consolidated operating results

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

	Net sales		Operating profit	Ordinary profit		Profit attributable to
			owners of parent
Fiscal year ended	Millions of yen		%	Millions of yen	%	Millions of yen		%	Millions of yen		%
May 31, 2023	31,025		2.9	517	201.1	987		28.8	824		-
May 31, 2022	30,158		(9.0)	171	(59.4)	766		1.2	(930)		-

Note: Comprehensive income	For the fiscal year ended May 31, 2023: ¥2,373 million [-%]
		For the fiscal year ended May 31, 2022: ¥(1,727) million [-%]
	Basic earnings per	Diluted earnings	Return on equity	Ratio of ordinary	Ratio of operating
		share	per share	profit to total assets	profit to net sales
Fiscal year ended		Yen	Yen	%	%	%
May 31, 2023		91.85	-	3.5	2.0	1.7
May 31, 2022		(104.02)	-	(4.0)	1.5	0.6
Reference: Share of profit (loss) of entities accounted for using equity method
		For the fiscal year ended May 31, 2023: ¥221 million
		For the fiscal year ended May 31, 2022: ¥242 million

(2)	Consolidated Financial Position
			Total assets		Net assets		Equity-to-asset ratio		Net assets per share
	As of	Millions of yen		Millions of yen		%		Yen
	May 31, 2023	49,682		24,582		49.5		2,605.99
	May 31, 2022	46,916		22,012		46.9		2,462.17
	Reference: Equity	As of May 31, 2023: ¥24,582 million
			As of May 31, 2022: ¥22,012 million
(3)	Consolidated Cash Flows
			Cash flows from operating	Cash flows from investing	Cash flows from financing	Cash and cash equivalents
			activities	activities	activities	at end of period
Fiscal year ended	Millions of yen	Millions of yen	Millions of yen	Millions of yen
May 31, 2023	815	635	(390)	5,520
May 31, 2022	2,504	289	(2,356)	4,449

2. Cash dividends

		Annual dividends per share				Ratio of
	First	Second				Total cash	Payout ratio	dividends
	Third	Fiscal year-		dividends	(Consolidat	to net assets
	quarter-	quarter-	Total
	quarter-end	end	(Total)	ed)	(Consolidat
	end	end
						ed)
	Yen	Yen	Yen	Yen	Yen	Millions of	%	%
	yen
Fiscal year ended	-	0.00	-	30.00	30.00	268	-	1.2
May 31, 2023
Fiscal year ended	-	0.00	-	30.00	30.00	286	32.7	1.2
May 31, 2022
Fiscal year ending
May 31, 2024	-	0.00	-	30.00	30.00		35.4
(forecast)

3. Consolidated financial results forecast for the fiscal year ending May 31, 2024 (from June 1, 2023 to May 31, 2024)

(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
	of yen		%	of yen	%	of yen	%	of yen	%	Yen
Six months ending	15,900		15.0	(120)	-	50	(74.7)	180	575.2	19.08
November 30, 2023
Fiscal year ending	34,500		11.2	600	15.9	950	(3.8)	800	(3.0)	84.81
May 31, 2024

* 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)

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: Yes
   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 May 31, 2023	9,735,000 shares
	As of May 31, 2022	9,735,000 shares
(ii) Number of treasury shares at the end of the period
	As of May 31, 2023	301,843 shares
	As of May 31, 2022	794,608 shares
(iii) Average number of shares for the period
	Fiscal year ended May 31, 2023	8,977,971 shares
	Fiscal year ended May 31, 2022	8,940,590 shares

(Reference) Overview of non-consolidated financial results

1. Non-Consolidated Business Results for the fiscal year ended May 31, 2023 (from June 1, 2022 to May 31, 2023)

(1) Non-consolidated operating results

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

	Net sales	Operating profit		Ordinary profit	Profit
Fiscal year ended	Millions of yen	%	Millions of yen		%	Millions of yen	%	Millions of yen	%
May 31,2023	26,811	3.8	(66)		-	444	29.6	551	-
May 31,2022	25,834	(9.3)	(343)		-	342	(52.9)	(1,144)	-
	Basic earnings per share	Diluted earnings per
	share
Fiscal year ended		Yen			Yen
May 31,2023		61.44			-
May 31,2022		(127.99)			-

1. Non-consolidatedfinancial position

		Total assets	Net assets	Equity-to-asset ratio	Net assets per share
As of		Millions of yen	Millions of yen	%	Yen
May 31,2023		45,542	19,710	43.3	2,089.45
May 31,2022		43,154	17,590	40.8	1,967.57
Reference: Equity
	As of May 31,2023:	¥19,710 million
	As of May 31,2022:	¥17,590 million

• The Summary of Consolidated Business Results is not subject to auditing by a certified public accountant or audit firm.
• Proper use of earnings forecasts, and other special matters
  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 "(4) Outlook" in "1. Overview of business results, etc." on page 3 for details relating to performance forecasts.
• 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) Consolidated financial results for the fiscal year ended May 31, 2023

3. Consolidated Financial Statements

(1) Consolidated Balance Sheets

		(Millions of yen)
	As of May 31, 2022	As of May 31, 2023
Assets
Current assets
Cash and deposits	4,449	5,520
Notes and accounts receivable - trade, and contract assets	12,091	13,236
Electronically recorded monetary claims - operating	1,136	1,116
Merchandise and finished goods	501	376
Work in process	3,077	3,106
Raw materials and supplies	2,688	2,836
Advance payments to suppliers	8	22
Accounts receivable - other	25	162
Other	212	370
Allowance for doubtful accounts	(1)	(10)
Total current assets	24,189	26,738
Non-current assets
Property, plant and equipment
Buildings and structures	10,326	9,952
Accumulated depreciation	(6,341)	(6,340)
Buildings and structures, net	3,985	3,611
Machinery, equipment and vehicles	8,185	8,208
Accumulated depreciation	(7,605)	(7,860)
Machinery, equipment and vehicles, net	579	348
Land	1,270	1,269
Construction in progress	7	11
Other	4,977	5,138
Accumulated depreciation	(4,497)	(4,678)
Other, net	479	459
Total property, plant and equipment	6,322	5,701
Intangible assets
Software	87	63
Other	14	13
Total intangible assets	101	77
Investments and other assets
Investment securities	12,471	14,288
Deferred tax assets	883	108
Other	2,953	2,775
Allowance for doubtful accounts	(6)	(7)
Total investments and other assets	16,302	17,165
Total non-current assets	22,726	22,943
Total assets	46,916	49,682

Toyo Denki Seizo K.K. (6505) Consolidated financial results for the fiscal year ended May 31, 2023

		(Millions of yen)
	As of May 31, 2022	As of May 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade	1,610	2,060
Electronically recorded obligations - operating	4,205	4,768
Short-term borrowings	585	885
Accrued expenses	688	589
Income taxes payable	306	128
Accrued consumption taxes	82	94
Contract liabilities	47	84
Deposits received	190	189
Provision for bonuses for directors (and other officers)	6	39
Provision for bonuses	699	673
Provision for loss on orders received	963	989
Provision for product warranties	6	70
Other	176	127
Total current liabilities	9,569	10,699
Non-current liabilities
Long-term borrowings	11,173	10,288
Long-term accounts payable - other	38	30
Retirement benefit liability	4,113	4,075
Other	6	4
Total non-current liabilities	15,333	14,399
Total liabilities	24,903	25,099
Net assets
Shareholders' equity
Share capital	4,998	4,998
Capital surplus	3,177	3,177
Retained earnings	11,122	11,347
Treasury shares	(1,282)	(486)
Total shareholders' equity	18,016	19,036
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	3,913	5,370
Foreign currency translation adjustment	144	202
Remeasurements of defined benefit plans	(61)	(26)
Total accumulated other comprehensive income	3,996	5,546
Total net assets	22,012	24,582
Total liabilities and net assets	46,916	49,682