東洋電機製造（6505） – [Delayed] Notice on Difference between Consolidated Business Forecast and Results, Extraordinary Income, Revision of Business Forecast

To whom it may concern, January 12, 2022 Company Name Toyo Denki Seizo K.K. Representative Akira Watanabe, President (Stock Code: 6505, 1st Section of the Tokyo Stock Exchange) Inquiries Toshihito Nakanishi, Operating Officer, General Manager, Management Planning Department (TEL. 03-5202-8122) Notice on Difference between Consolidated Business Forecast and Results for the First Half of Fiscal Year Ending May 2022, Recording of Extraordinary Income, as well as Revision of Consolidated Business Forecast for the Fiscal Year Ending May 2022 Toyo Denki Seizo K.K. (hereinafter “Toyo Denki”) today announces its consolidated business results for the first half of the fiscal year ending May 2022 and the difference from the forecast for the same period, which was released on July 15, 2021, as well as the recording of extraordinary income as follows. In addition, based on the results, etc. for the same period, Toyo Denki has decided to revise its consolidated business forecast for the fiscal year ending May 2022, which was released on July 15, 2021 as follows. 1. Difference between Consolidated Business Forecast and Results for the First Half of Fiscal Year Ending May 2022 (June 1, 2021 to November 30, 2021) Net sales Ordinary income Operating income Millions of yen Millions of yen Millions of yen Millions of yen Net income attributable to Net income per owners of the share parent 50 (83) (133) – 150 186 36 24.1 Yen 16.78 20.82 (100) (362) (262) – Millions of yen Millions of yen Millions of yen Millions of yen Yen 16,720 177 355 451 50.49 Previous forecast (A) Results (B) Change (B−A) Change (%) (Reference) Results for the first half of the previous fiscal year (First half of the fiscal year ended May 2021) 15,000 14,803 (196) (1.3) 2. Revision of Consolidated Business Forecast for the Fiscal Year Ending May 2022 (June 1, 2021 to May 31, 2022) Net sales Ordinary income Operating income Net income attributable to Net income per owners of the share parent Previous forecast (A) Revised forecast (B) Change (B−A) Change (%) (Reference) Results for the previous fiscal year Millions of yen Millions of yen Millions of yen Millions of yen 34,000 33,000 (1,000) (2.9) 450 250 (200) (44.4) 700 600 (100) (14.3) 800 700 (100) (12.5) Yen 89.48 78.29 Millions of yen Millions of yen Millions of yen Millions of yen Yen (Fiscal year ended May 2021) 33,143 423 757 977 109.38 3. Reasons for Difference and Revision (1) Difference between consolidated business forecast and results for the first half of fiscal year ending May 2022 Although net sales were generally in line with the previous forecast, in terms of income, due to the impacts of the longer than expected duration of COVID-19 in the industrial business and a shortfall in the order schedule, a deterioration of factory profit and loss due to the production shortage and a decline in gross margin ratio as a result of efforts to secure orders resulted in operating income and ordinary income falling below the previous forecast. On the other hand, net income attributable to owners of the parent exceeded the previous forecast due to the recording of a gain on sale of investment securities. (2) Revision of consolidated business forecast for the fiscal year ending May 2022 In the industrial business, it is assumed that the business environment will improve in the future, but it is expected that it will not be able to offset the shortfall in the results of the second quarter. As a result, the consolidated business forecast for the full year will be revised with respect to net sales, operating income, ordinary income, and net income attributable to owners of the parent. (Note) The above business forecasts are based on information currently available to Toyo Denki and certain assumptions deemed to be reasonable. Actual results may differ materially from these forecasts due to various factors. 4. Recording of Extraordinary Income (Gain on Sales of Investment Securities) (1) Reason for sale of investment securities Toyo Denki sold a portion of its investment securities to improve asset efficiency and strengthen its financial position (2) Sales period (3) Details of sale i. Type of asset sold From June 29, 2021 to November 9, 2021 ii. Gain on sales of investment securities 366 million yen One stock name of listed securities and one stock name of unlisted securities owned by Toyo Denki (4) Future outlook Toyo Denki will continue to strive to reduce its cross holdings.