Toyo Denki Seizo K.k. · TSE:6505
Toyo Denki Seizo K.k — FY2025 Earnings Presentation
33 slides from Toyo Denki Seizo K.k's earnings presentation, Jul 14, 2025
Slide 1: Financial Results Briefing for the Fiscal Year Ended May 31, 2025
Financial Results Briefing for the Fiscal Year Ended May 31, 2025 July 14, 2025 Toyo Denki Seizo K.K.
Slide 2: Program
Program ■ Briefing on Financial Results: 40 minutes 1. Overview of Financial Results for the Fiscal Year Ended May 31, 2025 2. Financial Results Forecast for the Fiscal Year Ending May 31, 2026 3. Action to Implement Management that is Conscious of Cost of Capital and Stock Price 4. Sustainability I
Slide 3: 1. Overview of Financial Results for the Fiscal Year Ended May 31, 2025
1. Overview of Financial Results for the Fiscal Year Ended May 31, 2025 (From June 2024 to May 2025) 2
Slide 4: 1-1. Overview of Consolidated Financial Results
1-1. Overview of Consolidated Financial Results While orders received decreased due to a reaction from the previous fiscal year, the major numerical targets of Medium-Term Management Plan 2026 were achieved one year ahead of schedule due to the recording of large overseas projects, etc. 100 million
Slide 5: Reference: Review of the Business Environment for FYE May 2025
<Reference> Review of the Business Environment for the Fiscal Year Ended May 31, 2025 • In Japan, an increase in railway users due in part to the recovery of inbound travel stimulated investment in rolling stock by railway operators, leading to an increase in orders received for products for Transpo
Slide 6: 1-2. Factors for Increase and Decrease in Consolidated Operating Profit
1-2. Factors for Increase and Decrease in Consolidated Operating Profit (YoY change) Significant profit increase due to net sales growth and improved gross margin Change in Plant profit/loss SG&A gross margin (non- expenses (non- (non- consolidated) consolidated) consolidated) +50 (980) +610 million
Slide 7: 1-3. Breakdown of Non-Operating Income/Expenses and Extraordinary Income/Loss
1-3. Breakdown of Non-Operating Income/Expenses and Extraordinary Income/Loss Non-operating Extraordinary income/expenses income/loss +200 million yen +120 million yen Dividend income +250 million yen Gain on sale of investment Share of profit of entities accounted securities for using the equity me
Slide 8: 1-4. Segment Performance: Transportation Business
1-4. Segment Performance: Transportation Transportation Business Orders received: Decreased due to a reaction from large projects for Indonesia in the previous fiscal year Net sales: Significantly increased due to steady progress in production and shipments for large projects in Indonesia, and an in
Slide 9: 1-5. Transportation Business: Factors for Increase and Decrease in Segment Profit
1-5. Transportation Business: Factors for Transportation Increase and Decrease in Segment Profit Profit grew due to an increase in net sales and improvement in gross margin resulting from large projects for Indonesia Plant profit/ Change in SG&A loss gross margin expenses (non- Increase/ (non- (non-
Slide 10: 1-6. Segment Performance: Industry Business
1-6. Segment Performance: Industry Business Industry Orders received: Decreased for the testing system for automobiles and production and processing equipment systems partly due to postponement of large projects Net sales: Rose due to an increase in power generation and power supply systems and the
Slide 11: 1-7. Industry Business: Factors for Increase and Decrease in Segment Profit
1-7. Industry Business: Factors for Increase and Industry Decrease in Segment Profit Segment profit increased due to improved profitability and higher subsidiary profits Change in Plant SG&A gross margin profitability expenses (non- (non- Subsidiary (non- consolidated) consolidated) consolidated) pr
Slide 12: 1-8. Segment Performance: ICT Solution Business
1-8. Segment Performance: ICT Solution ICT Business Orders received: Increased for station operating equipment for cashless services Net sales: Increased significantly due to steady progress of large projects for which we received orders in the previous fiscal year Segment profit: Grew due to an inc
Slide 13: 1-9. Consolidated Financial Position
1-9. Consolidated Financial Position May 31, 2024 May 31, 2025 Fiscal year- Fiscal year- Fiscal year- end (100 million yen) end end comparison Total assets 516.5 532.1 +15.5 Trade receivables: +3,190 million yen Current assets 279.6 300.8 +21.2 Inventories: +520 million yen Cash and deposits: (1,410
Slide 14: 1-10. Trends in Consolidated Cash Flows
1-10. Trends in Consolidated Cash Flows (100 million yen) FYE May 2023 FYE May 2024 FYE May 2025 Cash flows from operating activities 8.1 18.4 6.0 Cash flows from investing activities 6.3 (4.1) (2.9) Purchase of property, plant and equipment (3.2) (3.1) (5.0) Cash flows from financing activities (3.
Slide 15: 2. Financial Results Forecast for the Fiscal Year Ending May 31, 2026
2. Financial Results Forecast for the Fiscal Year Ending May 31, 2026 14
Slide 16: 2-1. Outlook for Financial Results for Fiscal Year Ending May 31, 2026
2-1. Outlook for Financial Results for Fiscal Year Ending May 31, 2026 (consolidated) Orders received: 41 billion yen (the level remains high) Projected net sales of 40 billion yen, operating profit of 2.4 billion yen, profit of 2.25 billion yen, and dividend of 75 yen per share Medium-Term FYE May
Slide 17: 2-2. Outlook for Financial Results (by Segment)
2-2. Outlook for Financial Results (by Segment) FYE May 2026 Full year Forecast Change from (100 million yen) the previous fiscal year Transportation Business 263.0 (14.4) Orders received Industry Business 127.0 +17.1 41 billion yen ICT Solution Business 20.0 +4.1 Transportation Business 269.0 (9.2)
Slide 18: Reference: Assumptions for Outlook for Financial Results
<Reference> Assumptions for Outlook for Financial Results The business environment assumed in the outlook for the financial results for the fiscal year ending May 31, 2026 • In Japan, demand for upgrades to sustainable equipment for GX and DX is expected to increase, and newly built rolling stock an
Slide 19: 3. Action to Implement Management Conscious of Cost of Capital and Stock Price
3. Action to Implement Management that is Conscious of Cost of Capital and Stock Price (Update) 18
Slide 20: Current recognition and issues
3. Action to Implement Management that is Conscious of Cost of Capital and Stock Price ■ Current recognition and issues Improvement of PBR through improvement of ROE is recognized as an important management issue PBR has been 0.45 times recently ROE achieved the 8% target of Medium-Term Management P
Slide 21: Review of measures in the fiscal year ended May 31, 2025
3. Action to Implement Management that is Conscious of Cost of Capital and Stock Price ■ Review of measures in the fiscal year ended May 31, 2025 500 Net sales ・ Promotion of Medium-Term Management Plan 2026 450 405 40400 billion yen 14% Operating 400 12% Net sales 40 310 321 ROE 8% 350 8.0% ROE 10%
Slide 22: Initiatives to increase corporate value (update)
3. Action to Implement Management that is Conscious of Cost of Capital and Stock Price ■ Initiatives to increase corporate value (update) Work to improve PBR ROE PER ROE and PER Medium-Term ・ Expansion of orders received by strengthening Strengthening sales activities Management Plan 2026 8% profita
Slide 23: Strengthening profitability
3. Action to Implement Management that is Conscious of Cost of Capital and Stock Price ■ Order backlog at end of Strengthening profitability period (100 million yen) ■ Expansion of orders received by strengthening sales 350 Transportation 318 318 Business activities 300 Industry Business ⚫ Proactive
Slide 24: Improvement in asset efficiency
3. Action to Implement Management that is Conscious of Cost of Capital and Stock Price Improvement in asset efficiency ■ Improvement in asset efficiency with ■ Ratio of investment securities to awareness of capital cost net assets and sales amount (100 million yen) ⚫ Continued curtailment of cross-s
Slide 25: Improvement of expected growth rate
3. Action to Implement Management that is Conscious of Cost of Capital and Stock Price Improvement of expected growth rate ■ Expansion of R&D investment and capital investment for new businesses and products ⚫ Development of new business areas and new products that meet customer needs ■ Promotion of
Slide 26: Enhancing shareholder returns
3. Action to Implement Management that is Conscious of Cost of Capital and Stock Price Enhancing shareholder returns ■ Dividend policy Under Medium-Term Management Plan 2026, we aim to increase dividends and enhance corporate value by expanding profits, while maintaining a sustainable, stable divide
Slide 27: 4. Sustainability Initiatives
4. Sustainability Initiatives 26
Slide 28: 4-1. Initiatives for the Indonesian railway market
4-1. Initiatives in Products and Services Transportation Initiatives for the Indonesian railway market Commuter trains in the Jakarta KRL Commuter Line metropolitan area Jakarta MRT Subway Approx. 1,100 cars will be replaced with newly built cars and Japan’s ODA yen loan project to electrical equipm
Slide 29: 4-2. History of the development of In-Tire House Dynamo
Our proprietary 4-2. Initiatives in Products and Services technology Industry History of the development of In-Tire House Dynamo (ITHD) Development to evaluate Advanced Driver-Assistance Simulation with ITHD Expansion of the lineup by increasing Systems (ADAS) and to replace chassis dynamos attached
Slide 30: 4-3. Initiatives to Value People and Local Communities
4-3. Initiatives to Value People and Local Communities Continuous initiatives to co-create value with diverse stakeholders Certified for 4 Health & Productivity consecutive years Management Organization from 2021 Announced on Partnership Development October 11, 2024 Declaration Certified on December
Slide 31: Reference: Our company profile and business overview
<Reference> Our company profile and business overview (1) Establishment : June 20, 1918 (106 years since establishment) (2) Capital stock ：4.9 billion yen (consolidated: fiscal year ended May 31, 2025) (3) Net Sales ：405 billion yen (ditto) (4) Number of employees ：1,146 (ditto) (5) Business lines :
Slide 32: Reference: Our company profile and business overview
<Reference> Our company profile and business overview We are contributing to the development of the railway and industrial fields as a heavy electric machinery manufacturer with three businesses: Transportation Business, Industry Business, and ICT Solution Business. Transportation Business: products
Slide 33: Disclaimer
Disclaimer • Statements concerning financial results forecasts are based on data available as of the date of publication of this material and assumptions concerning the elements of uncertainty that will affect future business performance as of the date of publication of this material. Actual financi