Financial Results Briefing
First Half of Fiscal 2015
(Ended November 30, 2015)

January 14, 2016
Toyo Denki Seizo K.K.

Program- NEXT100

 Briefing on Financial Results: 25 minutes
1. Overview of Financial Results for
the First Half of Fiscal 2015
2. Current Status of the Medium-Term Management
Plan—“Next 100; Beyond 100 years”

 Q&A: 30 minutes

1. Overview of Financial Results for
the First Half of Fiscal 2015
(June 1–November 30, 2015)

- NEXT100

1-1. Overview of Consolidated Financial Results
Net sales and operating income are at the same level as last year.
Production standardization and other are progressing faster than planned.
Net Sales andOperating Income

Transportation Systems are at the same level as last year. Profitability ofIndustrial Systems has improved for increased profit.

Ordinary Income

Equity in earning of affiliates increased, but down due to losses on exchange.

Orders Received

Transportation Systems are at the same level as last year. Industrial Systems
are slightly down from last year.
(Billions of yen)

1H
FY2013

1H
FY2014

1H
FY2015

YoYChangeNet sales

15.82

19.07

18.75

-0.32

-1.7%

+0.75

+4.2%

Operating income(%)

0.21(1.3%)

0.58(3.1%)

0.61(3.3%)+0.03(+0.2%)+4.7%+103.9%－+0.31(1.7%)

Ordinary income

0.27

0.87

0.71

-0.16 -18.8%+0.36+102.7%

Net income
Net income pershare (yen)

0.05

0.52

0.47

-0.04

-8.2%

+0.27

+136.5%

1.20

10.69

9.82

-0.87

－ーー

Orders received

18.25

19.60

19.13

-0.47

-2.4%

-0.37

-1.9%

Ratio of overseas
sales to net sales

26.1%

42.6%

33.1%

-9.5%

－(%)

Difference(%)－3- NEXT100

1-2. Factors Contributing to YoY Changes in Operating Income

Slight reduction in rebound from last year in non-consolidated results; improvement inprofitability among subsidiaries.

1H FY2014

1H FY2015¥580 million¥610 million
Non-consolidated

Changes ingross margin+¥200 million

Changes inoverhead expenses+¥70 million

Consolidated

YoY change+¥30 million

Increase/decreasein profitability Eliminations and other+¥230 million +¥70 million

Increase/decreasein profitability
Changes in plant profitability-¥270 million-¥260 million
4

- NEXT100

1-3. Segment Performance: Transportation Systems
Profit is at same level as last year. Order backlog has remained high.

(Billions of yen)

Net Sales and Segment Income
Net sales (line)

Segment income (bar)

300
30250
2590
980
8
Full year

70
7200
2060
613.03150
1550
512.73

440

9.86
10100

Orders Received and Order Backlog

Full 220year550

1.35

1.33 1H

0FY20132014.5期

350
35
Full year

300
30250
25
20200
15150

FY20142015.5期

FY20152016.5期

10100

110505

00

12.55

10.62

330

1H

1.06

Orders received (line)
Order backlog (bar)

12.86

1H

18.8
25.6
1H24.625.2
24.6

Full year

2014.5期
FY20132015.5期
FY20142016.5期
FY20155- NEXT100

1-4. Segment Performance: Industrial Systems

Order environment, in general, is unpredictable, but testing equipment for automobile
development is robust.
(Billions of yen)

Net Sales and Segment Income
Net sales (line)

Segment income (bar)

14140
12120

Orders Received and Order Backlog

3.535

Orders received (line)
Order backlog (bar)
200
2030
3.0

Full year

10100

252.5

150
15
Full year

880
660

202.0
5.33

5.66

151.51H
Fullyear2020.410.17
2014.5期
FY2013

6.59

6.45

5.86

6.0 4.9

5.7 6.66.8

2015.5期
FY20142016.5期
FY2015

1H40
40100
105.680.501H

101.050.50

2015.5期
FY20142016.5期
FY201550501H

Full year

2014.5期
FY20136

- NEXT100

1-5. Segment Performance: Information Equipment Systems
Upgrade demand for station operating equipment is entering changeover period.
(Billions of yen)

Net Sales and Segment IncomeSegment income (bar)Net sales (line)20
2.0

Orders Received and Order Backlog

50.5

Full year

Orders received (line)
Order backlog (bar)2.020
Full year

161.640.4

121.2

30.3

1.6
161.2
1280.8Fullyear

0.63

40.4

0.36

0.32

1.03
1H20.20.8
80.58

10.1

0.40
00 1H 0.01
2014.5期
FY2013-4-0.40.01
2015.5期
FY2014-0.02
2016.5期
FY2015

00

0.4
40.79

0.46
0.24

-1-0.101H

Full year

2014.5期
FY20130.09

2015.5期
FY20140.17
2016.5期
FY20157

- NEXT100

1-6. Consolidated Financial Position(Billions of yen)

FY2014FY2015

Nov. 30, 2014

May 31, 2015

Nov. 30, 2015

YoY Change50.7

53.0

54.3

+3.6

Current assets

26.2

25.6

27.1

+0.9

Fixed assets

24.5

27.4

27.2+2.7

Total liabilities

28.4

28.1

29.5

+1.1

10.1

9.4

10.8

+0.6

22.3

24.9

24.8

+2.5

43.9%

46.9%

45.7%

+1.7%

Total assets

Of which, interest-bearing debt

Net assets
Equity ratio

AssetsFixed Assets: Increase due to rise in market price of investment securities (+¥2.1 billion)
Net Assets
Increase in retained earnings (+¥0.7 billion) and increase in accumulated other comprehensive income (+¥1.7 billion)

8- NEXT1001-7. Consolidated Financial Forecast for Fiscal 2015
Orders achieved the initial target, contributing to the NEXT100 final year
(ending May 2017).

(Billions of yen)

FY2014
1H
Full Year

1HNet sales

19.07

39.61

18.74

44.00

-0.31

+4.38

Operating income
(%)

0.58
(3.1%)

1.59(4.0%)

0.61(3.3%)

2.10(4.8%)+0.02(+0.2%)+0.50(+0.7%)

Ordinary income

0.87

2.05

0.70

2.20

-0.16

+0.14

Net income

0.52
10.69

1.10
23.15

0.47
9.82

1.40
29.05

-0.04
-0.87

+0.29
+5.90

-0.47

+6.94

Net income per share (yen)Dividend forecast

FY2015Full Year
Forecast

YoY Change
1H
Full Year

6 yen/share

6 yen/share

Orders received

19.60

39.06

19.13

Year-end order backlog

31.36

31.34

31.59

46.00

9

- NEXT100

1-8. Segment Outlook(Billions of yen)Transporation
Systems

Industrial
Systems

Information
Equipment
Systems

28.50

14.00

1.50

－

44.00

3.20

1.20

0.23

-2.53

2.10

28.50

16.20

1.30

－

46.00

Net sales

+1.63

+2.39

+0.37

－+4.38Segment income

+0.08

+0.35

+0.16

-0.09+0.50

Orders received

+3.74

+2.88

+0.32

－+6.93

Net salesFY2015(Full Year Segment incomeForecast)
Orders received

YoY
ChangeAdjustment

Total

10

Reference: Contribution of Domestic Consolidated Subsidiaries(Billions of yen)

- NEXT100

Net Sales Trend (simple sum)

12012100
10808606404
202
0'10.5
FY2009'11.5
FY2010'12.5
FY2011'13.5
FY2012'14.5
FY2013

Subject companies• Toyokouki Co., Ltd.
• Taihei Electric Co., Ltd.

'15.5
FY2014'16.5
FY2015• TD Drive Manufacturing Co., Ltd.
• Toyosangyo K.K.
• Toyo Shoji K.K.
11

- NEXT100

Reference: Contribution of Overseas Consolidated Subsidiaries

Net Sales Trend (simple sum)(Billions of yen)

252.5202.0
1.5151.0100.550'10.5
FY2009'11.5FY2010'12.5FY2011'13.5FY2012'14.5FY2013'15.5FY2014'16.5FY2015

Subject company• Toyo Denki USA, Inc.
12

- NEXT100

Reference: Contribution of Equity Method Affiliates and Other (China)(Billions of yen)

Net Sales Trend (simple sum)

140
14120
12100
10880
660
440
2200
FY2009'10.5 FY2010'11.5 FY2011'12.5 FY2012'13.5 FY2013'14.5 FY2014'15.5 FY2015'16.5

FY2022'23.5

Subject companies• Changzhou Ruiyang Transmission Technology Co., Ltd.
• Hunan Xiangyang Electric Co., Ltd.
• Taiping Zhanyun Automatic Door (Changzhou) Co. Ltd.
• Beijing Jingche Shuangyang Traction System Co., Ltd. 13

2. Current Status of the Medium-Term
Management Plan—“Next 100;
Beyond 100 years”

- NEXT100

2-1. Medium-Term Management Plan—“Next 100”
Aiming to strengthen the management foundation as a 50 billion yen company
under the slogan: “Beyond the 100-Year Mark.” Period Covered
FY2014–FY2016(June 2014–May 2017)

 Performance Targets(Billions of yen)
NEXT100
FY2014FY2015(Forecast)

FY2016(Forecast)

Net sales

39.61

44.00

50.00

Operating income

1.59

2.10

3.00

(Operating incomemargin)(4.0%)(4.7%)(6.0%)

Ordinary income

2.05

2.20

3.20

Net income

1.10

1.40

1.90

Overseas net sales

15.06―25.00(Ratio of overseas
sales to net sales)(38.0%)（－%）(50.0%)

 Fundamental Policy
1. Strengthen international
competitiveness2. Build a stablebusiness earnings
structure

6.Train humanresources to support
global development

3. Restructure
production system

5. Establish newbusinesses

4. Promote developmentof technology

152-2. Fundamental Policy (1): Strengthening International
Competitiveness (Transportation Systems)- NEXT100

India: Working on activities to win orders for electrical equipment for high speedrailways.
• Exhibited motors and gear units for high speed railways at IREE2015, India’s largest railway
technology trade show, held in New Delhi in October 2015
• Launched joint initiative with local makers to manufacture electrical equipment in India• Strengthened information gathering at our Delhi Liaison Office

Toyo Denki booth at IREE2015

Motor (left) and gear unit (right) for high speed railways

16

2-3. Fundamental Policy (1): Strengthening International
Competitiveness (Transportation Systems)- NEXT100

Working on delivering pantographs for Beijing Subway.
• Started local testing for pantograph orders• Exhibited pantographs at Metro China 2015 held in Beijing in November 2015 and received
favorable reviews

Toyo Denki booth at Metro China 2015
Test pantograph mounted on Line 6 of Beijing Subway17

2-4. Fundamental Policy (4): Promoting Development ofTechnology (Transportation Systems)

1. Received order for E3 Solution Systemregenerative power storage system from
Tokyo Tama Intercity Monorail

Ref: For Kagoshima City
Transport Bureau- NEXT1002. Developed and showed electric door
operating equipment at Mass-Trans
Innovation Japan 2015

Demonstration of electric door operating
equipment at Mass-Trans Innovation Japan 201518

- NEXT100

2-5. Fundamental Policy (3): Restructuring Production System
Started detailed investigation of factory campus layout and so forth for our new
factory in Shiga.
LakeBiwa
びわ湖

RyuoInterchange

To Osaka

Meishin Expressway
To Nagoya

Route 477

To Konan
City(3) Land acquired by
Toyo Denki

Photo taken
May 2015

19

- NEXT100

2-6. Fundamental Policy (3): Restructuring Production System
Preparing for operations to startup at the new Shiga factory in March 2018.

Year

FiscalMonthPeriod
154

Mar.

Year

Land acquisition contract
Signing ceremony
155

154

2015

Events

156

157
2018

157

EventsMar.

Start of operations

Jun.

100th company anniversary
159
158

Jul.–
Dec.

Apr.–
Dec.
155

FiscalMonthPeriod

158

Jan.– Enter design contract
May
Boring exploration

2019
159

2016

156

Jun.–
Dec. Construction application
ContractJan.

2017
157

Land handover
Groundbreaking

Feb.–
Dec.
Completion of factory building20

2-7. Fundamental Policy (5): Establishing New Businesses- NEXT100(Information Equipment Systems)
Joint development with Denyo Co., Ltd. of a communication power generator equippedwith remote monitoring functions.

Mobile phone
InternetSmartphone

Digital panel

FOMA baseFOMAstationantenna
IORemotor
monitoring terminal
Updatedate/time

Data centerOffice PC

Engine Power Generator
Operation Status

Engine rpm

Battery charge voltage

Engine oil pressure

Engine water temperature

FuelGenerator

Works in conjunction withDigital Panel!

21

Thank you for your interest.
https://www.toyodenki.co.jp/en/index.html

Inquiries
PR, IR, and CSR Department, Management Planning Division
Toyo Denki Seizo K.K.
Phone: 03-5202-8122
Email: contact@toyodenki.co.jp

Disclaimer- NEXT100• Statements concerning financial results forecasts are based ondata available as of the date of publication of this material andassumptions concerning the elements of uncertainty that will affectfuture business performance as of the date of publication of thismaterial. Actual financial results may differ depending on a varietyof factors.
• Forward-looking statements contained in this material are thejudgments of the Toyo Denki Group based on data available at thetime of publication of this material. Such statements anddescriptions are by no means comprehensive.