Toyo Denki Seizo K K : Notice on Difference Between Consolidated Performance Forecast and Results for the Fiscal Year Ended May 31, 2023

	July 13, 2023
To Whom It May Concern,
Company Name	Toyo Denki Seizo K.K.
Representative	Akira Watanabe,
	President, Representative Director
	(Stock Code: 6505 TSE Standard)
Inquiries	Jun Nukina, Operating Officer, General
	Manager, Management Planning Division
	Tel.: [phone]

Notice on Difference Between Consolidated Performance Forecast and Results

for the Fiscal Year Ended May 31, 2023

Toyo Denki Seizo K.K. (hereinafter "Toyo Denki") hereby announces there is a difference between the consolidated performance forecast for the fiscal year ended May 31, 2023 disclosed on July 14, 2022, and the results for the same period disclosed today.

1. Difference between consolidated performance forecast and results for the fiscal year ended May 31, 2023 (June 1, 2022, to May 31, 2023)

					Profit
		Net sales	Operating	Ordinary profit	attributable to		Basic earnings
		profit	owners of		per share
					parent
Previous forecast (A)	Millions of yen	Millions of yen	Millions of yen	Millions of yen		Yen
34,000	450	700	800	89.48
Results (B)	31,025	517	987	824	91.85
Change (B − A)	(2,974)	67	287	24
Change (%)	(8.7)	15.0	41.0	3.1
(Reference) Results for
the previous year	Millions of yen	Millions of yen	Millions of yen	Millions of yen		Yen
(Fiscal year ended May	30,158	171	766	(930)	(104.02)
31,	2022)

2. Reason for the difference

Sales fell short of the previous forecast due to the continued impact on the Company's production processes caused by the prolonged difficulty in procuring parts and materials. Operating profit exceeded the previous forecast thanks to efforts to improve profitability. Ordinary profit was higher than the previous forecast, mainly due to the steady performance of equity-method affiliates in China and the recording of foreign exchange gains. Profit attributable to owners of parent was largely in line with the previous forecast due to the recording of business structural reform expenses as an extraordinary loss, despite gains on sales of investment securities and gains on sales of non-current assets.