Our Heart and Technology for the Future

Financial Results Briefing
First Half of Fiscal 2009 (Ended November 30, 2009)

January 15, 2010
Toyo Denki Seizo K.K.

ProgramPresident’s Briefing: About 20 minutes
1. Financial Results for the First Half of Fiscal
2009
2. Outlook for Fiscal 2009 Full Year FinancialResults
3. Status of Business Segments
4. Other Topics
5. Progress under the Challenge Up Plan
Q&A: About 30 minutes

1. Financial Results for the First Half of Fiscal 2009
1-1. Year on Year Change in Financial Results(Millions of yen)

1H/FY2008

1H/FY2009

YoY ChangeOrders received

18,19919,764+1,565Net sales

16,092

14,919-1,173

Operating income

802(157)-959

Percent of sales

5.0%(1.1)%

Ordinary income703(179)

Percent of sales

4.4%(1.2)%Net income

79(221)

Percent of sales

0.5%(1.5)%Net income per share (yen)1.79(5.03)

-882

-300
-6.82
3

1. Financial Results for the First Half of Fiscal 2009
1-2. Results Compared to Previous Forecasts(Millions of yen)

1H/FY2009
Forecasts

1H/FY2009
Results

Difference

Orders received

21,00019,764-1,236

Net sales14,000

14,919+919

Operating income

(100)

(157)

- 57

Percent of sales(0.7)%(1.1)%

Ordinary income

(100)

(179)

Percent of sales(0.7)%(1.2)%Net income

(200)

(221)

Percent of sales(1.4)%(1.5)%Net income per share (yen)(4.53)(5.03)

- 79
- 21

-0.50
4

1. Financial Results for the First Half of Fiscal 2009
1-3. Business Segment Results Compared to Previous Forecasts(Millions of yen)Transportation
Systems
Ordersreceived

Net sales

Operatingincome

IndustrialSystems

Information
Systems

Total

1H/FY2009 forecasts

14,3005,6001,100

21,0001H/FY2009 results

13,724

4,543

1,496

19,764

Difference(576)(1,057)+396(1,236)

1H/FY2009 forecasts

9,500

4,100400

14,0001H/FY2009 results

10,063

4,351504

14,919Difference+563+251+104+919

1H/FY2009 forecasts

390(370)

(120)

(100)

1H/FY2009 results

457

(466)

(147)

(157)

Difference+67(96)

(27)

(57)

5

1. Financial Results for the First Half of Fiscal 2009
1-4. Year on Year Change in Financial Position
Comparative Consolidated Statement of Financial Position(Millions of yen)

May 31, 2009Nov. 30, 2009

YoY
Change32,78033,549+769

Current assets

20,20520,982+777

Fixed assets

12,575

12,566-9

Total liabilities

20,316

21,870+1,554

6,361

6,945+584

Net assets

12,464

11,678-786

Equity ratio

38.0%

34.8%

-3.2%

Net assets per share (yen)282.40265.06-17.34

Total assets

Of which, interest bearing debt

Comments62. Outlook for Fiscal 2009 Full Year Financial Results
2-1. Market Outlook by Segment
OutlookMarket overall(1) Numerous railway infrastructure investment schemes are expected in every regionof the globe(2) Downturn in capital investment should bottom out; however, recovery remains
uncertain(3) Under deflationary conditions, the job market will remain bleak; subdued personal
consumption will continue

Transportation
Systems(1) Domestic orders are expected to remain flat(2) Robust demand for high-speed rail and urban transportation network development
in China

IndustrialSystems(1) Downturn in capital investment should bottom out; however, recovery remains
uncertain

Information
Systems(1) Market scale for IC card-compatible equipment relating particularly to railway
station operations will remain unchanged(2) The remote monitoring system market is undergoing growth

New Business(1) Growing trend from gasoline vehicles to electric vehicles
72. Outlook for Fiscal 2009 Full Year Financial Results
2-2. Consolidated Forecasts(Millions of yen)

FY2008FY2009 Forecasts

YoY Change

Orders received

36,46440,000+3,536

Net sales

33,22635,000+1,774

Operating income

1,396

1,300-96

Percent of sales

4.2%

3.7%

Ordinary income

1,267

1,200

Percent of sales

3.8%

3.1%

Net income

103600Percent of sales

0.3%

1.7%

Net income per share (yen)2.32

13.59-67+497+11.27

8

2. Outlook for Fiscal 2009 Full Year Financial Results
2-3. Sales and Operating Income Results and Forecasts(Billions of yen)1550
Net sales (Scale: left)
Operating income (Scale: right)

45
40

36.5

34.7

35

42
38.1

38
33.2

32.4

35
10

30.2
30
25
20

5

15
10

1.77

3

2.59

2.53

1.92

5

1.4

1.4

2
1.3

00
FY2003

FY2004

FY2005Grow Up 123

FY2006

FY2007
Innovation 90

FY2008FY2009~FY2011

Challenge Up Plan9

2. Outlook for Fiscal 2009 Full Year Financial Results
2-4. Overseas Sales Results and Forecasts(Billions of yen, %)15Overseas sales
Overseas sales as proportion of consolidated sales

3.00（単位：百万円）
3.0

12.0

2.510
1.55
1.23
51H/FY2009 Results
3.1
20.9%

1.54

1.33
5.4

5.0

1.13

2.0

6.3

1.5

5.1
4.2

4.1

3.7

1.27

1.80

1.0
0.5

00.0
FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009
Grow Up 123

Innovation 90~FY2011

Challenge Up Plan

102. Outlook for Fiscal 2009 Full Year Financial Results
2-5. Policy on Dividends(1) Toyo Denki’s fundamental policy calls for a stable dividend.
(2) Internal reserves are used to strengthen the Company's financial
position and to strategically allocate to research and development,
capital expenditure, and overseas expansion with the objectives offuture business expansion and strengthening of the management
base.
(Yen)
Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal 20092004 2005 2006 2007 2008 (Planned)
Annual dividend per share

5.00

6.00

6.00

6.00

6.00

6.00

Note: Toyo Denki holds approximately 5.4% of its common stock issued and outstanding.

113. Status of Business Segments
3-1. Interim Results and Forecasts for Transportation Systems(Millions of yen)

Consolidated financial results for 1H/FY2009

Forecasts for FY2009
FY2009Forecasts

Results

Difference

Orders received

14,30013,724-576

Orders received

26,700Net sales

9,500

10,063+563

Net sales

22,500Operating income

390457+67

Operating income

1,650

Percent of sales

4.1%

4.5%

+0.4%

Percent of sales

7.3%

Comments

Comments

 Orders received: Three Beijing subway lines in July 2009
 Net sales:
Increase in overseas sales
 Operating income: Contributions from subsidiarycompanies• Robust demand for high-speed rail and urban
transportation network development in China• Strong likelihood of achieving full fiscal year
forecasts

12

3. Status of Business Segments
3-2. Sales and Operating Income Results and Forecasts forTransportation Systems(Billions of yen)

30.0

10
Net sales (Scale: left)
Operating income (Scale: right)

25.0

25.0

22.5
19.8

18.7

20.0

16.3
15.0

19.1

17.2

14.8

5

10.0
5.0

2.20
0.98

1.55

1.60

1.50
0.51

1.65

0.54

0.00FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009
Grow Up 123

Innovation 90~FY2011Challenge Up Plan

13

3. Status of Business Segments
3-3. Topics on Transportation Systems(1) Commercial service of the East Japan Railway Company E259 series newNarita Express commenced on October 1, 2009
Equipment delivered by the Company:
Auxiliary power supply apparatus, traction motors, drive gear units, TD couplings,
pantographs, and door operating equipment

143. Status of Business Segments(2) Chinaʼs high-speed rail network
China Power Investment
Corporation Railway (lineconnecting Daban with
Jingzhou under construction)

HarbinBaiyinhua

Four vertical andfour horizontal lines

Daban
JingzhouShenyang

Beijing
Shenmubei
Huanhua

Shenhua Group Railway

Taiyuan Shijiazhuang
JinanLanzhou

XianChengdu■Four commuter lines running roughly from south to north• Beijing–Shanghai• Beijing–Wuhan–Guangzhou–Shenzhen• Beijing–Shenyang–Harbin• Shanghai–Hangzhou–Ningbo–Fuzhou–Shenzhen

Qingdao■Four commuter lines running roughly from east to west
• Xuzhou–Zhengzhou–Lanzhou• Hangzhou –Nanchang–Changsha–Guiyang–Kunming• Qingdao–Shijiazhuang–Taiyuan• Nanjing–Wuhan–Chongqing–Chengdu

XuzhouZhengzhou

NanjingShanghaiHangzhouWuhan

Chongqing
Nanchang
ChangshaFuzhouGuangzhou

Shenzhen

NingboHigh-speed rail service connecting Wuhan andGuangzhou:
Service commenced on December 26, 2009
Orders for Toyo Denkiʼs gear units:
Order for 30 trains in January 2009
Additional order for 40 trains in January 201015

3. Status of Business Segments(3) Beijing subway network at present
Simultaneous orders received for three Beijing subway lines in July 2009
① Second stage ofconstruction of Line 10② Line 9③ Yizhuang LineThe Olympic Stadium

Tiananmen SquareLine 10 train

Lines for which deliveries
have been completedLines for which Toyo Denki
has received firm orders

Line 1/Batong Line
Line 4/Daxing Line
Line 6Line 8

Toyo Denki’s Beijing OfficeLine 10/Western
Suburban Line
Line 14
Airport Line
Line 2Line 5/YizhuangLine
Line 7
Line 9/FangshanLineLine 13/ChangpingLine

Line1516

3. Status of Business Segments(4) Beijing subway network at present(Plan for 2015)(6 lines)
Rail lines scheduled forbidding or construction

Beijing subway network (plan for 2015)17

3. Status of Business Segments
3-4. Interim Results and Forecasts for Industrial Systems(Millions of yen)

Consolidated financial results for 1H/FY2009Forecasts for FY2009
FY2009Forecasts

Results

Difference

Orders received

5,600

4,543-1,057

Orders received

11,300Net sales

4,100

4,351+251

Net sales

10,300Operating income

(370)

(466)

-96

Operating income(400)

Percent of sales(9.0)%(10.7)%-1.7%

Percent of sales(3.3)%

Note: Expected results of New Business are
Included in forecasts.
Comments

Comments

 Orders received:• Indications that the downturn in capital
investment is bottoming out; expectations of arecovery in the second half
• Working toward the achievement of full fiscalyear forecasts

Substantial decline due to weakcapital investment
 Net sales:Forecasts achieved
 Operating income: Impact of subsidiary companies andchanges to accounting standards

18

3. Status of Business Segments
3-5. Sales and Operating Income Results and Forecasts forIndustrial Systems(Billions of yen)

20.0
18.0

10

Net sales (Scale: left)
Operating income (Scale: right)

16.0
14.0

14.5

15.7

15.9

13.5

12.8

13.0

12.4

12.0

10.3

10.0

5

8.0
6.0
4.0
2.0

0.65

0.84

1.09

0.80
0.10

0.50
0.01

0.0-4.0

FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009
Grow Up 123

Innovation 900~

FY2011

Challenge Up Plan193. Status of Business Segments
3-6. Interim Results and Forecasts Information Systems(Millions of yen)

Consolidated financial results for 1H/FY2009

Forecasts for FY2009
FY2009Forecasts

Results

Difference

Orders received

1,100

1,496+396

Orders received

2,000

Net sales

400504+104

Net sales

2,200

Operating income

(120)

(147)

-27

Operating income

50

Percent of sales(30.0)%(29.2)%+0.8%

Percent of sales

2.3%

CommentsComments Orders received:• Addressed market needs for remotemonitoring system and IC-card compatible
equipment relating to railway station
operations• Strong likelihood for achieving full fiscal year
forecasts

Steady orders for IC card-compatible
equipment Net sales:
Forecasts achieved
 Operating income: Results are generally in line with
forecasts

20

3. Status of Business Segments
3-7. Sales and Operating Income Results and Forecasts forInformation Systems
4.0

Net sales (Scale: left)
Operating income (Sales: right)

3.5

3.7

(Billions of yen)
43.0
3

3.0
2.6

2.5

2.4

2.5

2.2

2.0

2

1.7

1.6
1.50.2011.00.5

0.41
0.14

0.14

0.0

-1.00.05-1.10.05

FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009
Grow Up 123

Innovation 90~0FY2011

Challenge Up Plan21

3. Status of Business Segments
3-8. Topics on Information Systems
Sales of Toyo Wireless Measurement System commenced in July 2009
Features: • Easy installation with batteryless and wireless design• Facilitates easy visualization and monitoring of power usage and flow

PlantsCommercial
facilities

Retail stores

Current sensor

Power sensor

Receiver unit
PCs

Public facilities(school, hospital,etc.)

Wireless communication
Analog sensor through designated low(for temperature, power base stations

humidity, etc.)

Principal applications:• Identify and measure equipment energy
volumes• Use as a portable measurement tool
• Enhance efficiency of cyclical inspections

22

4. Other Topics
4-1. Engineering Center Completed
Completion ceremony held on January 20, 2010, and operations scheduled
to commence from March 2010
Goals:(1) Expand design and development capabilities(2) Increase production capacity

Engineering Center

Toyo Denki’s
Yokohama Works23

4. Other Topics
4-2. The Engineering Center’s Environmentally Friendly Facilities(1) Solar power generation(2) Wind power generation(3) Ice thermal and other energy conservation systems

Wind-power generation(Proprietary R&D products)
Engineering Center

Solar panels24

4. Other Topics
4-3. Social and Environmental Contribution Activities(1) Onsite lectures on the environmentorganized by the City of Yokohama
A lecture was held at a special needs
school in Yokohama in December 2009.
Based on the theme “Building EcoFriendly Railway Systems ― Promoting
Ecological Integrity through Increased
Railway System Use” and attended byapproximately 170 high-school students,
these lectures served to increase theinterest of participants in railways.
(2) Environmentally friendly uniforms
The Company’s Yokohama Works
introduced work uniforms made fromrecycled fibers of plastic bottles

25

5. Progress under the Challenge Up Plan
(1) Further increase Group corporate value
Crystallizing business alliance with Fuji Electric System Co., Ltd.

(2) Fortify the Group’s efforts toward overseas expansion• Responding to growth in China’s rail market• Strengthening operating platform in the North American rail market• Building an operating platform in India(3) Generate new businesses
Building an operating platform in the electric vehicle business26

5. Progress under the Challenge Up Plan
(4) Develop new products• Toyo Wireless Measurement System• Further developments in in-wheel motors• Expanding sales of E3 Solution Systems(5) Bolster CSR activities• Environmental contribution activities• Social contribution activities(6) Establish and promote a dynamic corporate culture• Commenced comprehensive employee participatory activities• Implementing 5S (sorting, straightening up, spotlessness,standardizing, and self-restraint) activities
27

Disclaimer• Statements concerning financial results forecasts are based on data
available as of the date of publication of this material and assumptions
concerning the elements of uncertainty that will affect future businessperformance as of the date of publication of this material. Actual financial
results may differ depending on a variety of factors.
• Forward-looking statements contained in this material are the judgments of
the Toyo Denki Group based on data available at the time of publication ofthis material. Such statements and descriptions are by no meanscomprehensive.

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