Financial Results Briefing
Fiscal 2013 (Ended May 2014)

July 11, 2014

Toyo Denki Seizo K.K.

Program Briefing on Financial Results: 30 minutes
1. Overview of Financial Results for Fiscal 2013
2. Outlook for Financial Results for Fiscal 2014
3. New Medium-Term Management Plan
“Next 100”
 Q&A: 30 minutes

11. Overview of Financial
Results for Fiscal 20132

1-1. Key Points
Overall: Increase in revenues, significant increase in earnings• Net sales• Operating income

YoY +14.3% (+¥4,380 million)
YoY +114.8% (+¥580 million)

Transportation Systems:Significant increase in revenues and earnings• Net sales• Segment income

YoY +28.1% (+¥4,870 million)
YoY +24.1% (+¥460 million)

Industrial Systems:
Decrease in revenues, increase in earnings• Net sales• Segment income

YoY -5.4% (-¥620 million)
YoY +23.8% (+¥100 million)

Information Equipment Systems:
Increase in revenues, significant increase in earnings• Net sales• Segment income

YoY +7.5% (+¥130 million)
YoY +31.3% (+¥80 million)31-2. Overview of Consolidated Financial Results(Millions of yen)

Fiscal2012

Fiscal2013YoYchange

Fiscal 2013
Forecast

Difference

30,58034,960+4,38036,000-1,040

Operating income

5001080+580

1,500-420%

1.6%

3.1%

+1.5%

4.2%

-1.1%

Ordinary income

1,150

1,040

-110

1,500

-460%

3.8%

3.0%

-0.8%

4.2%

-1.2%

Net income

720

640-80

750

-110%

2.4%

1.8%

-0.6%

2.1%

-0.3%

Net income pershare (yen)

14.98

13.37

-1.61

15.40

+2.03

Orders received

33,95042,570+8,62041,000+1,570Net sales41-3. Overview of Business Segment Results(Millions of yen)Ordersreceived

Net sales

Segment
incomeTransportation
Systems

Industrial
Systems

Automotive
vehicle electricalequipment

Information
Equipment
Systems

Adjustment
and otheramounts

Total

Fiscal 2012

20,94011,460510

1,540

633,950

Fiscal 2013

29,790

11,100

260

1,670

6

42,570YoY change+8,850-360-250+130–+8,620

Fiscal 2012

17,320

11,540400

1,700

630,580

Fiscal 2013

22,20010,920

280

1,830

6

34,960YoY change+4,880

-620

-120

+130

–+4,380

Fiscal 2012

1,910

430

-140

270(2,150)

500

Fiscal 2013

2,370

540

-130

350

(2,220)1,080

YoY change+460+90+10+80-70+580

5

1-4. Overview of Business Segment Results: Orders Received■Fiscal 2012 ■ Fiscal 2013 (Billions of yen)
50

42.57
33.95

40

40
30

29.79
20.94

30
2020
10

1000Total

11.46

Transportation Systems

11.10
2.0

1210

1.54

1.67

1.5

8

1.0

6
40.5

200.0

Industrial Systems

Information Equipment
Systems6

1-5. Overview of Business Segment Results: Net Sales■Fiscal 2012 ■ Fiscal 2013 (Billions of yen)
40

30.58

34.96

30
2530

22.20
17.32

20
1520

1010500Total
11.54

Transportation Systems

10.92
2.012101.70

1.83

1.5

8

1.0

64

0.5

200.0

Industrial Systems

Information Equipment
Systems7

1-6. Overview of Business Segment Results: Segment Income■Fiscal 2012 ■ Fiscal 2013 (Billions of yen)
1510

10.80

2.37

3.0
2.5

1.91

2.0

5.00

1.5
1.0

5

0.5
0

0.0

Total (Operating Income)
0.5

1.00
0.80
0.60

Transportation Systems

0.43

0.54

0.4

0.27

0.3

0.40

0.2

0.20

0.1

0.00

0.0

Industrial Systems

0.35

Information Equipment
Systems8

1-7. Factors Contributing to Changes in Operating Income

Increased revenues+¥880 millionDecreased
gross margin-¥670 million

Increased subsidiary
profitability+¥60 million¥1,080 million+¥580 million¥5.0 million

Fiscal 2012

Increased plant
profitability+¥60 million

Decreased overhead
expenses+¥210 million

Fiscal 20139

1-8. Consolidated Financial Position(Millions of yen)

May 31,
2013

May 31,
2014

YoYchange42,36044,750+2,390Current assets

21,94023,560+1,620

Fixed assets

20,42021,200+780

Total liabilities

23,84025,400+1,560

9,830

8,920

-910

Net assets

18,52019,350+830

Equity ratio

43.7%43.2%-0.5%

Net assets per share (yen)384.14401.45+17.31

Total assets

Of which, interestbearing debt

Notes

Including cash and cash
equivalents (+1,600)

10

1-9. Dividends(1) Toyo Denki’s fundamental policy calls for a stable dividend.
(2) In addition to strategic allocation to research anddevelopment, capital expenditure, and overseas expansion
with the objectives of future business expansion andstrengthening of the management base, internal reserves areused to strengthen the Company’s financial position.
(Yen)

Annual dividend per shareFiscal2010Fiscal
2011

Fiscal
2012

Fiscal
2013

Fiscal 2014
(Forecast)

6.00

6.00

6.00

6.00

6.00

11

2. Outlook for Financial Resultsfor Fiscal 2014

2-1. Order Environment by Business Segment
Comments
Market overall(1) Japanese economy still on path to recovery(2) Infrastructure investment remains at a high level in China and developing
countries

Transportation
Systems(1) Upgrade demand is strong in Japan(2) In China, plans for high-speed railways are firming up, and subways areexpected to start upgrading equipment(3) Investment for railroad infrastructure outside Japan is trending at a highlevelIndustrialSystems(1) Capital investment in Japan is in an upswing(2) In Southeast Asia and developing countries, infrastructure and capital
investment remains at high levels(3) Both in and outside of Japan, demand for distributed power generation isextremely highInformation
Equipment
Systems(1) Upgrade will gradually start for railway station operating equipment(2) Energy- and labor-saving remote monitoring systems help expand themarket13

2-2. Key Fiscal 2014 Forecast Points
Overall: Increase in revenues, significant increase in earnings• Net sales
YoY +14.4% (+¥5,040 million)• Operating income
YoY +95.2% (+¥1,020 million)
Transportation Systems:
Increase in revenues, significant increase in earnings• Net sales
YoY +16.2% (+¥3,600 million)• Segment income
YoY +28.0% (+¥660 million)
Industrial Systems:
Increase in revenues, significant increase in earnings• Net sales
YoY +14.0% (+¥1,530 million)• Segment income
YoY +120.0% (+¥640 million)
Information Equipment Systems:
Decrease in revenues and earnings• Net sales
YoY -4.3% (-¥80 million)• Segment income
YoY -17.8% (-¥60 million)
142-3. Forecast for Consolidated Financial Results for Fiscal 2014
(Millions of yen)

Fiscal 2013

Fiscal 2014
(Forecast)

YoY change

Net sales

34,96040,000+5,040

Operating income

1,080

2,100+1,020%

3.1%

5.3%

+2.2%

Operating income

1,040

2,100+1,060%

3.0%

5.3%+2.3%

Net income

640

1,200+560%

1.8%

3.0%

+1.2%

Net income pershare (yen)

13.37

24.89

+11.52

Orders received

42,57045,000+2,430
152-4. Performance Forecasts by Business Segment(Millions of yen)TransportationSystems

OrdersreceivedNetsales

Segment
incomeIndustrialSystems

Information
Equipment
Systems

Adjustment
and otheramounts

Total

Fiscal 2013

29,790

11,1001,670

642,570

Fiscal 2014
(Forecast)

27,60015,6501,750–45,000

YoY change-2,190+4,550+80–+2,430

Fiscal 2013

22,20010,9201,830

634,960

Fiscal 2014
(Forecast)

25,80012,4501,750–

40,000YoY change+3,600+1,530-80–+5,040

Fiscal 2013

2,370

540

350

-2,220

1,080

Fiscal 2014
(Forecast)

3,040

1,180

290

-2,4302,100

YoY change+670+640-60-210+1,02016

2-5. Segment Performance Forecasts: Orders■Fiscal 2013 ■ Fiscal 2014 (Billions of yen)
50

42.57

45.00

4040

29.79

27.60

3030
2020
10

1000Total
15.65

2015

11.10

Transportation Systems
2.0

1.75

1.5

10

1.0

5

0.5

00.0

Industrial Systems

1.67

Information Equipment
Systems17

2-6. Segment Performance Forecasts: Net Sales■Fiscal 2013 ■ Fiscal 2014 (Billions of yen)
50

34.96

40.00

30

22.20

25.80

2540

20

30

1520

10

10

500

Total
15

10.92

12.45

Transportation Systems
1.83
2.0

1.75

1.5

10

1.0
50.5

00.0

Industrial Systems

Information Equipment
Systems18

2-7. Segment Performance Forecasts: Segment Income■Fiscal 2013 ■ Fiscal 2014 (Billions of yen)
3.0

2.10

2.5
2.0
1.5

4.0
3.0

1.08

2.37

2.0

1.0

1.0

0.5
0.0

0.0

Total (Operating Income)
1.18

1.5

Transportation Systems
0.5
0.4

1.0

3.04

0.54

0.35

0.29

0.3
0.2

0.5

0.1

0.0

0.0

Industrial Systems

Information Equipment
Systems19

3. Other Topics

3-1. Topics: Transportation Systems
 Orders and sales for gear units for high-speed railways in China• Orders received for gear units for high-speed railways in China has recovered• Increasing product lineup on gear units for applications such as for high speed (above350 km/h), medium speed (250 to 350 km/h), and cold climate destinations

6.0

Orders and sales of gear units for high-speed railways in China

Orders received

5.0

4.0

(Billions of yen)

Net sales*1*1 Beijing-Shanghai HighSpeed Railway opened inJune 2011

3.0
2.0
1.00.0FY2007

FY2008FY2009FY2010FY2011FY2012FY201321

3-2. Topics: Industrial Systems
 Expanded sales of biomass power generation systems for Southeast Asia
1. Use of generated energy at the sugar refinery
2. Ethanol refinement

Sugar refinery

Sugarcane waste

A representative office will be opened in
Bangkok, Thailand in September 2014 toserve as a base for gathering information.

Biomass power generation system22

3-3. Topics: Information Equipment Systems
 Expanded sales of remote monitoring systems for agricultural facilities• Visualization via the Internet of temperature and humidity controls for greenhouses, etc.

A poster featuring acucumber greenhousethat uses Toyo Denki
remote monitoring system23

3-4. Topics: Investor Relations Activities First-ever Plant Tour for Stockholders
Date/Time:

Friday, April 11, 2014 from 13:30 to 17:00

Location:

Yokoyama Plant (Kanazawa-ku, Yokohama)

Number of participants: 31 Toyo Denki stockholders (out of 120 applicants)
Survey results:

93.5% of the stockholders who participated in the tour
responded with "extremely satisfied" or "satisfied"24

Thank you for your interest.
http://www.toyodenki.co.jp

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

Disclaimer• 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.

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