Dash 2015 New Mid-Term
Management Plan
July 12, 2012

Toyo Denki Seizo K.K.

Previous Mid-Term Management Plan Forecasts and Results(Billions of yen)

Fiscal 2008

Fiscal 2011

ResultForecast Result Difference

Net sales

33.2

42.0

38.5

-3.5

Operating income

1.4

3.0

1.7-1.3

Operating income margin

4.2%

7.2%

4.4%

-2.8%

Ordinary income

1.3

3.0

1.8-1.2

Net income

0.1

1.5

0.8

-0.7

Overseas net sales

4.2

12.6

13.2

+0.6

Ratio of overseas sales
to net sales

12.7%

30.0%

34.4%

+4.4%

ROE

0.8%

10.0%

5.4%-4.6%
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Previous Mid-Term Management Plan Summary:
Net Sales, Operating Income, Overseas to Net Sales Ratio• Net sales and operating income fell short of forecasts.
• Surpassing target of 30%, ratio of overseas sales to net sales set a record high.
(Net sales:
Net sales/OperatingBillions of yen)income/Overseas to net sales ratio
454035(Operating income:Billions of yen)
9.0
Information Equipment Systems
8.0
Industrial Systems
7.0
Transportation Systems

30

6.0

Operating income (Right scale)

25

5.0

Ratio of overseas sales
to net sales

34.4%

20
15

4.0
3.0

12.6%102.05

1.000.0

列309/5列1 列12 12/5
Fiscal 2008
Fiscal列2
2011列222

Previous Mid-Term Management Plan Summary:
Results and Issues by BusinessResultsIssues

Transportation
Systems

Business for overseas
markets expanding asplannedEnhance structure for handlingoverseas orders

Industrial Systems

Recovered frombottoming out after crisis
following the collapse ofLehman Brothers

Reorganize business structure toadapt to changes in market
structure; markedly strengthen
overseas business

Automotive
Began mass production
vehicle electrical of drive systems forequipment
construction machinery
Information
Equipment
Systems

Added new products inthe railway station
operating equipment line

Build a structure for expanding
mass production base
Expand market for railway station
operating equipment; put remotemonitoring business on track3New Mid-Term Management Plan

Name: Dash 2015 (June 2012 – May 2015)
Objective of the new mid-term management plan
Dash 2015 builds on the foundation laid by the Challenge Up Plan (previous
mid-term management plan) to promote measures based on Toyo Denki's basic
policy and put its businesses on track for greater growth in order to realize thelong-term vision.
(Billions of yen)

100
9080
7060
50403020
100

100thanniversary offounding

Challenge Up200920102011

Dash 2015

20122014

2017(Fiscal year)4Long-Term Vision
Long-Term Vision
Integrating the exceptional motor drive technologies on which
our company was founded with our breakthrough advanced
technologies to help build environmentally friendly societies
through global business development

Toyo Denki in the Long-Term

A global company that continues to createtechnology designed to support
environmentally friendly societies
5Basic Policy
Marking the 100th anniversary of its founding in 2018, Toyo
Denki is focused on dramatically increasing its corporate
value by markedly strengthening the management base inorder to create a corporate group that is suited to a new age.
1. Significantly expand
overseas sales
2. Expand share ofJapanese market

3. Commercialize
automotive electricalequipment business

5. Streamline
management

4. Develop alliancestrategy6Principal Measures

1

Establish structure
for promoting global
business• Further develop markets in China,
the US, South Korea, and Taiwan• Maintain marketing bases in Indiaand Southeast Asia
• Expand existing overseas
production bases and establish
new bases• Strengthen alliances

4Reduce costs,enhance quality
and reliability• Implement drastic cost reduction
measures throughout production
and administrative divisions• Boost capacity to create cash by
improving asset efficiency• Strengthen quality control system

2Develop andpromote newbusinesses• Quickly establish a mass
production structure for automotive
electrical equipment• Enter new business sectors thatare relevant to the trends toward
electrification and compliance withenvironmental standards

5 Promote CSR• Establish regular CSR activities
and expand areas of CSR focus

3

Develop newproducts andtechnologies• Develop new strategic products• Reorganize and expand R&D
division• Acquire international certifications
and qualifications

dynamic6 Create
corporate culture• Maintain comfortable workplaceenvironment• Retain next-generation humanresources and develop skills• Build systems

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Management Targets(Billions of yen)

Fiscal 2011

Fiscal 2014
(Forecast)Difference

Net sales

38.5

52.0+13.5

Operating income

1.7

3.6+1.9

Operating income margin

4.4%

7%

+2.6%

Ordinary income

1.8

3.6+1.8

Net income

0.8

1.8+1.0

Overseas net sales13.2

26.0+12.8

Ratio of overseas sales
to net sales

34.4%

50% or higher +15.6% or higher

ROE

5.4%

8% or higher+2.6% or higher
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Management Targets by Business(Billions of yen)

Fiscal 2011

Fiscal 2014 (Forecast)

Net sales

Segment income

Net sales

Segment income

Transportation Systems

24.0

2.7

28.0(+4.0)

3.5(+0.8)

Industrial Systems

12.2

0.25

21.0(+88)

1.55(+1.30)Automotive vehicle
electrical equipment

0.5(0.28)

3.0(+2.5)

0.13(+0.41)

Information Equipment
Systems

2.30.66

3.0(+0.7)

0.55(-0.11)

̶Adjustment1Total

38.5

̶

(1.92)
1.7

52.0(+13.5)(2.0)

3.6(+1.9)

1Adjustment is primarily comprised of selling, general and administrative

expenses that are not allocated to each business segment..

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Overseas Strategies: Transportation and Industrial Systems

Strengthen structure fororder fulfillment andmaintenance services forelectrical equipment for
Chinese railroads

Strengthen activities forsecuring North Americanorders for electrical equipment
Strengthen activities for securing
Chinese and Southeast Asian orders
for industrial system products

Establish structure to handle
orders for electrical equipment
for Indian railroads• Set up representative office• Utilize alliances• Establish product supply and services
structure…Overseas bases…Priority regions for utilizing alliances
10Organizational Strategies
Toyo Denki undertook a reorganization on June 1, 2012
to enhance the Company’s ability to execute Dash 2015
successfully.
• Strengthen functions that boost business strategy planning capacity
and Group management capacity
 Management Planning Division/Group Administration Office, Corporate
Production Planning Division, Purchasing Center, and other departments• Maintain and expand structure to accelerate business developmentoverseas
 Industry Business Unit/Global Strategy Division• Enhance R&D structure to enhance ability to create new technologies
and products
 Research Laboratory
11Thank you for your interest.
http://www.toyodenki.co.jp

Inquiries
PR, IR, and CSR Department, Planning Division
Toyo Denki Seizo K.K.
Phone: 03-3535-0633
Email: contact@toyodenki.co.jp

12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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