Toyo Denki Seizo K.k.TSE: 6505

Financial Results Briefing for the Six Months Ended November 30, 2022

· Issued by Toyo Denki Seizo K.K.

Financial Results Briefing

for the Six Months Ended

November 30, 2022

January 13, 2023

Toyo Denki Seizo K.K.

Program

  • Briefing on Financial Results: 30 minutes
  1. Overview of Financial Results for the Six Months Ended November 30, 2022
  2. Financial Results Forecast for the Fiscal Year Ending May 31, 2023
  3. Medium-TermManagement Plan
  • Q&A: 30 minutes

1

1. Overview of Financial Results for the Six Months Ended November 30, 2022

(from June 1, 2022 to November 30, 2022)

1-1. Overview of Consolidated Financial Results

Net sales fell from the same period of the previous year and operating loss decreased due to factors such as difficulties in procuring parts and materials and delivery delays, although orders received increased significantly and the business is on a recovery trend.

100 million yen

6M FYE

6M FYE

YoY Change

6M FYE

Changes vs.

May 2023

Forecast

May 2022

May 2023

%

Forecast

%

Orders

142.1

170.7

＋28.5

+20.1%

163.0

＋7.7

104.7%

received

Net sales

148.0

138.2

- 9.8

- 6.6%

160.0

- 21.8

86.4%

Operating

- 3.6

- 0.8

＋2.8

ー

- 0.8

＋0.0

100.0%

profit

Ordinary

- 0.8

1.9

＋2.8

1.6

＋0.3

118.8%

ー

profit

Profit

1.8

0.2

- 1.6

- 85.7%

3.0

- 2.8

6.7%

[Profit per share (yen)]

20.82

2.98

- 17.84

－

33.56

- 30.58

－

Ratio of overseas

14.9%

18.0%

＋3.1pt

－

sales to net sales

3

Review of Business Environment for the six months ended November 30, 2022

Transportation

Business

Business Environment

Although the number of railway passengers is gradually recovering, there is no prospect that the number will recover to the pre- pandemic level, partly due to changes in behavior patterns. The recovery in capital investment by customers has been slow.

Industry Business

In China, due to the behavior restrictions imposed by the zero-COVID policy, the turnout is below pre-pandemic levels and the economic recovery is not robust. Restrictions on face-to-face sales activities have been eased, and capital investment for plant production in many industries continues to recover. However, some customers are reconsidering their capital investment plans due to a shortage of materials. Although the economies of many countries are recovering moderately, the future remains uncertain due to geopolitical risks, rising raw material prices, and shortages of parts.

4

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