Financial Results Briefing
First Half of Fiscal 2011
(Ended November 30, 2011)

January 13, 2012
Toyo Denki Seizo K.K.

Program Briefing on Financial Results:
About 25 minutes
1. Overview of Financial Results for the First
Half of Fiscal 2011
2. Outlook for Fiscal 2011 Full Year FinancialResults
3. Status and Outlook for Individual BusinessSegments
4. Other Topics

 Q&A: 30 minutes1

1. Overview of Financial Results for
the First Half of Fiscal 2011
(June 1 – November 30, 2011)

1-1. Key Points
Overall:
Net sales steady year on year, decrease in earnings
Net sales
Operating income¥18,830 million¥515 million

YoY -0.5%
YoY - 19.8%(-¥88 million)(-¥127 million)

YoY -8.6%
YoY -7.7%(-¥1,133 million)(-¥115 million)

Transportation Systems:
Decrease in revenues and earnings
Net sales
Segment income¥12,033 million¥1,377 million

Industrial Systems:
Increase in revenues and earnings
Net sales
Segment income(Excluding new businesses:¥6,326 million¥52 million¥191 million

YoY +19.1% (+¥1,016 million)
YoY -10.3% (-¥6 million)
YoY +105.4% (+¥98 million)Information Systems:
Increase in revenues and earnings
Net sales
Segment income¥465 million¥39 million

YoY +6.2%
YoY --(+¥27 million)(+¥39 million)(Returned to profit)3

1-2. Overview of Consolidated Financial Results(Millions of yen)

1H
FY20101H
FY2011

YoYchange1H FY2011
Forecasts

Difference

Net sales

18,91818,830-88

19,000-170

Operating income

642

515

-127

700

-185%

3.4%

2.7%

-0.7%

3.7%

-1.0%

Ordinary income

574525-49700

-175%

3.0%

2.8%

-0.2%

3.7%

-0.9%

Net income

196303+107

300+3%

1.0%

1.6%

+0.6%

1.6%

--

Net income pershare (yen)

4.43

6.29

+1.86

6.57

-0.28

Orders received

16,353

16,884+531

21,200-4,316
41-3. Details of Non-Operating Income and Expenses andExtraordinary Losses¥530
million¥510
million¥500
million(Millions of yen)

Non-operating income
and expenses+20
Breakdown
Dividends received +90
Life insurance
dividend income+40Interest expenses -70
Loss on foreign
currency exchange -40

Operatingincome(Millions of yen)

Extraordinary loss -30
Breakdown
Loss ondevaluation ofinvestment
securities-20
Loss ondisasters-10

Ordinary
income¥300
million(Millions of yen)

Income tax -190

Incomebefore tax

Net
income5

1-4. Overview of Business Segment Results(Millions of yen)Ordersreceived

Net sales

Segment
incomeTransportation
Systems

Industrial
Systems

Information Adjustment
Systems
Amount1H FY2010

10,176

5,445730－

16,353

1H FY2011

8,786

6,574

1,518

5

16,884

YoY change-1,390+1,129+788+5+531

1H FY2010

13,166

5,310

438

218,918

1H FY201112,0336,326

465

518,830

YoY change-1,133+1,016+27+3-88

1H FY2010

1,49258-0-937642

1H FY2011

1,3775239-979515

YoY change-115-6+39-42-127

Total

6

1-5. Factors Contributing to Changes in Operating Income
Increase in grossprofit margin+¥30 million

Deterioration in plant
profitability- ¥40 million

Increase in testing
equipment development
and other overhead
expenses - ¥100 million¥640
millionDecrease in subsidiaries’
income and other income- ¥50 million
Additional
revenue effect+ ¥30 million

Non-consolidated factors

1H FY2010¥510million-¥130 million

Subsidiarycompanyfactors

1H FY201171-6. Consolidated Financial Position(Millions of yen)

May 31, November 30,Change2011
2011
Total assets
Current assets

36,89239,156+2,264

21,621

22,930+1,309

Fixed assets

15,27016,226+956

Total liabilities

22,62324,829+2,206

6,535

10,664+4,129

Net assets

14,26814,327+59

Equity ratio

38.7%

36.6%

-2.1%

Net assets per share (yen)295.89297.12+1.23

Of which, interestbearing debt

Notes

Mutual holding ofshares with East Japan
Railway Company81-7. Major Shareholders
Excerpt from the Company’s First Half Business Report for the 151st Period
Submitted on January 13, 2012
As of November 30, 2011
NameAddress

No. ofShares Held(Thousandsof Shares)

No. of Shares Held as a
Percentage of Total
Issued and Outstanding
Shares (%)

Nippon Life Insurance Company

1-6-6, Marunouchi, Chiyoda-ku, Tokyo, Japan

3,013

6.19

East Japan Railway Company

2-2-2 Yoyogi, Shibuya-ku, Tokyo, Japan

2,400

4.93

Toyota Industries Corporation

2-1, Toyoda-cho, Kariya-shi, Aichi

2,100

4.31

Hitachi, Ltd.

1-8-12 Harumi, Chuo-ku, Tokyo

2,100

4.31

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

2-7-1, Marunouchi, Chiyoda-ku, Tokyo

1,586

3.26

Employees Stock Ownership Plan

2-9-2, Kyobashi, Chuo-ku, Tokyo

1,410

2.90

The Master Trust Bank of Japan, Ltd.

2-11-3, Hamamatsucho, Minato-ku, Tokyo

1,318

2.71

1,053

2.16

1,038

2.13

1,030

2.12

17,04835.02(Standing Proxy: Trust & Custody Services Bank, Ltd.)(Trust Account)

Japan Trustee Services Bank, Ltd.

1-8-11, Harumi, Chuo-ku, Tokyo(Trust Account)

The Bank of Yokohama, Ltd.

1-8-12, Harumi, Chuo-ku, Tokyo(Standing Proxy: Trust & Custody Services Bank, Ltd.)OHKURAYAjuutaku Co., Ltd
Total

2-4-1, Nishi-shinjuku, Shinjuku-ku, Tokyo―

Note: The number of shares held is recorded in accordance with names listed on the shareholders’ register. This reflects the difficulty in ascertaining
as a company exhaustive details of the number of shares applicable to the trust services of trust and banking companies.

92. Outlook for Fiscal 2011
Full Year Financial Results

2-1. Outlook for Consolidated Financial Results for Fiscal 2011
(Millions of yen)

FY2010FY2011(InitialForecast)

FY2011(RevisedForecast)Comparedwith Initial
Forecast

Orders received

34,85040,50040,5000Net sales

37,89340,80040,000-800

Operating income

1,503

2,600

1,800-800%

4.0%

6.4%

4.5%

-1.9%

Ordinary income

1,577

2,600

1,800-800%

4.1%

6.4%

4.5%

-1.9%

Net income

678

1,300

750-550%

1.8%

3.2%

1.9%

-1.3%

Net income per share
(yen)

14.86

28.48

16.43

-12.0
11

3. Status and Outlook for
Individual Business Segments

3-1. Order Environment by Business Segment
Comments

Market overall(1) Continued strong yen(2) Slight improvement in domestic economic conditions(3) Continued strong infrastructure investment in China and otheremerging countries

Transportation
Systems(1) Domestic orders to remain flat(2) Continued robust overseas demand for urban transportation
networks

Industrial
Systems(1) Recovery in capital investment in automobile industry and raw
material manufacturers(2) Increase in inquiries concerning business in Southeast Asia andChinaInformation
Systems(1) Settled orders in IC-compatible equipment relating to railway station
operations; focus on renewal demand(2) Expectations that energy efficient remote control systems will helpexpand the market

133-2. Transportation Systems(1) Consolidated financial resultsfor 1H FY2011(2) Forecast for consolidated
financial results for FY2011(Millions of yen)

1H
FY20101H
FY2011

YoYchangeOrdersreceived

10,176

8,786-1,390Net
sales

13,166

12,033

Segment
income1,492

Profitratio

11.3%

FY2010FY2011
Forecast

YoYchangeOrdersreceived

21,756

20,900-856-1,133Net
sales

25,657

23,700-1,957

1,377

-115

Segment
income

3,055

2,570

-485

11.4%

+0.1%

Profitratio

11.9%

10.8%

-1.1%

14

3-3. Industrial Systems(1) Consolidated financial resultsfor 1H FY2011(2) Forecast for consolidated
financial results for FY2011(Millions of yen)

FY2010FY2011
Forecast

YoYchangeOrdersreceived

11,988

17,100+5,112+1,016Net
sales

11,09514,000+2,90552(191)-6(+98)Segment
income1164(291)

780
(980)

+616
(+689)

0.8%(3.1%)-0.3%(+0.4%)

Profitratio1

1.5%(2.7%)

5.6%(7.3%)+4.1%(+4.6%)

1H
FY2010

1HFY2011

YoYchangeOrders
received

5,445

6,574+1,129

Net
sales

5,310

6,326Segment
income158(93)Profitratio1

1.1%(2.7%)

1. Figures in parentheses indicate results excluding new businesses

153-4. Information Systems(1) Consolidated financial resultsfor 1H FY2011(2) Forecast for consolidated
financial results for FY2011(Millions of yen)

1H
FY20101H
FY2011

YoYchangeOrdersreceived

730

1,518+788

Net
sales

438

465

Segment
income-0

Profitratio—FY2010FY2011
Forecast

YoYchangeOrdersreceived

1,105

2,500+1,395+27Net
sales

1,133

2,300+1,167

39+39Segment
income101370+269

8.4%—Profitratio

8.9%

16.1%

+7.2%

16

4. Other Topics

4-1. Electrical Equipment Order for the Macau APM RailTransportation System
Macau light rapid transit system scheduled tocome online in 2015

RouteMap

Toyo Denki has received an order forelectrical equipment for use in fully
automated, driverless rubber-tired automatedpeople mover (APM) rail carriages from
Mitsubishi Heavy Industries, Ltd.
Order for VVVF control systems and traction motors(55 trains consisting of 2 cars per train: 110 cars)

Phase 1 project(Macau)Phase 1 project(Taipa)Phase 2 project(scheduled)18

4-2. Delivery of Electrical Equipment for Line 9 of the Beijing
Subway Network Line 9 of the Beijing Subway Network opened on December 31, 2011
(3) Line 10 phase 2
construction:
Scheduled toopen in 2012

Toyo Denki received
simultaneous orders for threelines within the Beijing
Subway Network in July 2009

(2) Line 9: Operationscommencedin December 2011

(1) Ciqu Line: Operationscommenced inDecember 2010
Beijing Subway Network (2015)

Line 919

4-3. DC Regulator Equipment for HEV/EV Test Bench System
DC regulator equipment that dramatically reduces the development periods forhybrid and electric vehicles
Operating section (+ batterymodel operational equipment)

Electric voltage and internal
resistance configuration

Inverter +motor

Regeneration
converter

Bidirectional
chopper

Test piece andload device

DC regulator
equipment
Structure20

4-4. Orders Received in Information Systems Segment
Station operation equipment: Development and sale of new conductor’s
portable terminals
Details:

Development of conductor’s portable terminals

Ordering party: Railway service operators in Japan (for shinkansen and conventional
railway lines)

Remote monitoring systems: Portable terminals for use in the inspection andrepair of Japan Freight Railway Company containers
Details:

Read and record information tags embedded in containers using
portable terminals; forward detailsof containers requiring inspection
and repair on a real time basis
utilizing mobile phone networks

Ordering party: Japan Freight Railway Company21

4-5. HEMS Development
Home Energy Management System (HEMS) development
Details:

Development of systems that utilize sensors to help measure andvisualize surges and electric currents

Ordering party: Energy operators in Japan, reconstruction-related projects, etc.
Responding to smart city plans and the need for monitoring systems for the aged

Measuring energy
consumption

Wireless
communication throughdesignated low-powerbase stations or LAN

Alarm

Measuring temperatureand humidity
Measuring gas and water
consumption

PC
Receiver unit

Alarm
Information
terminal
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4-6. Hybrid Drive Systems for Construction Machinery Hybrid drive system applications
Mini shovel trucks
Shovel trucks

Mining machinery23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: 03-3535-0633
Email: contact@toyodenki.co.jp

Reference: Trends in Consolidated Net Sales andOperating Income, and Forecast
5045(Billions of yen)

Net sales (Left scale)Operating income (Right scale)40353034.7
28.7 29.0 30.2

36.5
32.4

38.1
33.2

35.4

37.9

15

40.0
1025
20

5151051.85 1.77

2.53 2.59

0.37

1.92

1.40 1.40 0.98 1.50 1.80

00
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

(Fiscal year)(Project 0)

Grow Up 123

Innovation 90

Challenge Up Plan
25

Reference: Performance Trends in Transportation Systems,and Forecast(Billions of yen)

30
Net sales (Left scale)Operating income (Right scale)25

18.7201514.9

14.8

16.3 17.2

23.7

5
3.05

1.30

0.98

23.7

19.8 19.1

105

25.6

10

1.55

1.60

1.50
0.51

2.57

1.76

0.54

00
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
(Fiscal year)(Project 0)

Grow Up 123

Innovation 90

Challenge Up Plan
26

Reference: Performance Trends in Industrial Systems,and Forecast
20
18
1614

(Billions of yen)

Net sales (Left scale)Operating income (Right scale)

14.1

12.8

13.5

14.5

109

15.7 15.9
14.0
11.1

12.4

876

129.0

1058

46

34

0.84 1.09 1.00 0.80

0.78

20.49 0.650(0.75)
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

0.01

0.16

210(Fiscal year)(Project 0)

Grow Up 123

Innovation 90

Challenge Up Plan27

Reference: Performance Trends in Information Systems,and Forecast
4.0

3.0

1.0
0.5
0.0

Portion is included inTransportation Systems

2.0

2.40

2.30
21.70

1.60

432.732.60 2.50

2.5

1.5

3.70

Net sales (Leftscale)Operating income(Right scale)

3.5(Billions of yen)

1.13
10.14

0.14

0.41
0.05

0.1

0.37

(0.12) (0.03)(0.10)
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

0(Fiscal year)(Project 0)

Grow Up 123

Innovation 90

Challenge Up Plan28

Reference: Trends in Overseas Sales, and Forecast(Billions of yen, %)15.0

Overseas sales
Overseas sales as proportion of consolidated sales

20.1

10.0

30.0
26.5 12.0
10.1

30.0
25.0
20.0

15.5 15.4
12.3
5.0

5.4

3.7

5.0

11.3
4.1

13.3 12.7
5.1

7.1

15.0

4.2

10.0
5.0
0.0

0.0

2003 2004 2005 2006 2007 2008 2009 2010 2011 (Fiscal year)
Grow Up 123

Innovation 90

Challenge Up Plan29

Reference: Trends in Consolidated Capital Expenditure andDepreciation Expenses, and Forecast
2,500(Millions of yen)

Capital expenditure
Depreciation expenses

2,018

2,000

1,500

1,173
1,000

500

1,169 1,150
1,142
1,000

1,050
819

562

374

666

958

950

2008

2009

730

334

371

406

2003

2004

2005

507

0

Grow Up 123

2006

2007

Innovation 902010

2011(Fiscal year)

Challenge Up Plan30

Reference: Trends in Consolidated Research andDevelopment Expenses, and Forecast(Millions of yen)

1,400
1,200
1,000
811

800
600

675

807

665

917

826

920

720

425

400
20002003 2004 2005 2006 2007 2008 2009 2010 2011

(Fiscal year)

Grow Up 123Innovation 90

Challenge Up Plan31

Reference: Trends in Consolidated Personnel Expenses
and Number of Employees, and Forecast(Persons)(Billions of yen)

16.0
14.0

Employees (End of fiscal year)

1,177

12.0
10.0
8.0

Change of calculation
benchmark1,023 1,071
8.8

9.2

1,200

1,064 1,081 1,087 1,097 1,073
9.5

9.6

9.7

9.4

9.8

1,300
1,200
1,100

9.8

9.8

1,000

6.0

900

4.0
2.0

800

Personnel expenses

7000.02003 2004 2005 2006 2007 2008 2009 2010 2011

(Fiscal year)

Grow Up 123

Innovation 90

Challenge Up Plan32

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.

33