July 14, 2022
To Whom It May Concern,
Company Name Toyo Denki Seizo K.K.
Representative Akira Watanabe, President(Stock Code: 6505 TSE Standard Market)
Inquiries
Toshihito Nakanishi, Operating Officer,
General Manager, Management PlanningDivision(TEL 03-5202-8122)

New Medium-Term Management Plan
Toyo Denki Group (hereinafter the “Group”) hereby announces its new medium-term management plan(fiscal year ending May 2023 to fiscal year ending May 2026) as follows.
1. Basic Policy of the new medium-term management plan
Following the ending of the medium-term management plan “Revitalize 2020/2022” (fiscal year ended
May 2018 to fiscal year ended May 2022) that was implemented until the fiscal year ended May 2022, theGroup had decided to work on a new four-year medium-term management plan based on the achievements
obtained along with remaining issues. Meanwhile, the Group was not able to secure sufficient profitability
to respond to major changes in the business environment, including the decrease in number of railway
passengers due to the COVID-19 pandemic and a review of testing equipment for electrification ofautomobiles. As a consequence, results were substantially below what was planned.
Taking into account the issues the Company itself is facing which also became clear from the results,
under the new medium-term management plan (fiscal year ending May 2023 to fiscal year ending May2026), further initiatives will be taken to achieve “revitalization and transformation of Toyo Denki” so as torecover and improve corporate value.
To do so, the management foundation will be radically strengthened with the aim of achieving an ROEof 8% or more at an early stage. This will be done by (1) expanding new businesses and products and (2)thoroughly improving the earnings structure of existing businesses, while (3) improving asset efficiency
with an awareness of capital cost under the basic policy of the plan.
2. Numerical targets
Under this basic policy, the fiscal year under review, which will be the initial year of the plan, will bepositioned as “a year to thoroughly take initiatives in structural reforms to increase profitability,” carrying
on from the previous fiscal year when there was impairment treatment of business assets related to theIndustrial Systems segment. Initiatives toward revitalizing and transforming Toyo Denki will be stronglypromoted.
Numerical targets under the new medium-term management plan lasting until the fiscal year ending May
2026 will be set as management numerical targets that the Group can commit to for all stakeholders, andpresented by July 2023. Targets will be based on the progress and achievements made in the past year inregard to the structural reform initiatives mentioned in 3., together with the business environment.
3. Priority initiatives for structural reform in the past year of the fiscal year under review
The following initiatives will be taken with priority. At the same time, we will establish an organizational
structure to support such initiatives aimed for under the new medium-term management plan, and work toreform the human resource strategies to strengthen the workforce that is the core of management resourcesand vitalize organizational culture.
(1) Initiatives to expand new businesses and products(i) Enhancement and acceleration of development of company-wide new business areas with adevelopment center newly established in the fiscal year under review as its core(Creation of technologies and products and discovery of new business fields that contribute to a
decarbonized and sustainable society)(ii) Expansion of business area from railway station operating equipment to overall ICT through theICT Solution Business Unit reorganized in the fiscal year under review(Establishment of the Company’s unique ICT business field by merging power electronics withICT)(2) Thorough improvement in earnings structure of existing businesses(i) Radical strengthening of profitability with plants and marketing in unison from both aspects ofimproving production efficiency and securing appropriate sales prices(ii) Further strengthening of profit-oriented operation in existing businesses to increase investments inR&D and human resources(3) Improvement in asset efficiency with awareness of capital cost(i) Continued curtailment of cross-shareholdings and idle assets(ii) Verification of capital efficiency by business segment and review of reallocation of management
resources
4.

Schedule

Numerical targets under the new medium-term management plan are planned to be announced by July
2023.