New Medium-Term Management Plan
“NEXT 100: Beyond 100 Years”

July 11, 2014

Toyo Denki Seizo K.K.

Long-Term Vision＜Long-Term Vision＞
The Toyo Denki Group will contribute to the realization of anenvironmental-compatibility-based society through global
business development by fusing advanced breakthroughtechnologies together with the excellent motor drive
technologies it has cultivated since its foundation.

Toyo Denki in the Long-Term
A global company that continues to create technology for therealization of social infrastructure systems that help protect theglobal environment1

新中期経営計画と基本方針
Aiming to strengthen the management foundation as a 50 billion yen
company in three years under the slogan: “Beyond the 100-Year Mark”<Name>“NEXT 100: Beyond 100 Years”(June 1, 2014 – May 31 , 2017.)
1. Strengthen international
competitiveness2. Build a stable businessearnings structure

6.Train human resources tosupport global development

Fundamental
Policy3. Restructure production
system

5. Establish new businesses

4. Promote developmentof technology
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Business Area Expansion and Globalization• Achieve net sales of ¥50 billion, and operating income of ¥3 billion by May 31, 2017
• Increase the ratio of overseas sales to net sales to 50%(%)(Billions of yen)

600605005090

Overseas net sales
Net sales in Japan
Ratio of overseas sales to net sales
Global financial crisis(September 2008)

4040050%30300
20200

Number oftransportation
projects inChina increased

A sales base of ¥25
billion in Japan

FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016
Innovation 90

6030

Ratio of overseas sales to net sales
remained in the 10-19% range

Grow Up 123

754536.7%

10100050.0

Highest level yet forthe ratio of overseas
40.0sales to net sales

Challenge Up Plan

Dash 2015

150NEXT 100

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Principal Measures
1. Strengthen international competitiveness•••Promote business centered on the Group’s bases in overseas markets inChina, the U.S., South Korea, India, and Taiwan
Build up the brand and expand business through bases in Southeast Asia
Utilize alliances to cultivate new markets

2. Build a stable businessearnings structure

3. Restructure production system•••

Expand its share in Japan’sMothers market
Stabilize earnings potential inIndustrial Systems segment••

Expand production capacity andestablish global production system as
Toyo Denki in view of its 100th year andbeyond
Strengthen global quality control
systems, including suppliermanagement
Reorganize backbone systems
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Principal Measures
4. Promote development oftechnology••

Proactively utilize young humanresources with an eye to achieving
fresh ideas
Train advanced engineers throughactive secondment to research
institutions such as universities

5. Establish new businesses• Promote businesses in distributed
power sources and electrification

6. Train human resources to support global development• Procure next-generation human resources and capacity-development
systems• Establish working and living environments that the promotion anddevelopment of global business5Management Targets(Billions of yen)

Fiscal 2013

Fiscal 2016
Forecast

Net sales

34.96

50.0+15.04

Operating income

1.08

3.0+1.92

Operating income margin

3.1%

6%

+2.9%

Ordinary income

1.04

3.2+2.16

Net income

0.64

1.9+1.26

Overseas net sales

12.83

25.0+12.17

Ratio of overseas sales tonet sales

36.7% 50% or higher +13.3% or higher

Difference

6Management Targets by Business Segment(Billions of yen)

Fiscal 2013

Fiscal 2016 Forecast

Net Sales

Net Sales

Difference

Transportation Systems

22.20

31.0+8.8

Industrial Systems

10.92

16.0+5.08

Information Equipment Systems

1.83

3.0+1.17–––34.96

50.0+15.04

Adjustment1
Total

1 Adjustment is primarily comprised of selling, general and administrative

expenses that are not allocated to each business segment.

7Overseas Strategies: Transportation and Industrial Systems(1) Strengthen structure for orderfulfillment and maintenanceservices for electricalequipment for Chinese
railroads(2) Strengthen activities forsecuring orders for electricalequipment for North Americanrailroads(3) Capture demand for upgrading electricalequipment for Southeast Asian railroads(4) Strengthen activities for securing
Southeast Asian orders for industrial
system products(5) Establish structure to handle
orders for electrical equipment for
Indian railroads(6) Expand overseas sales ofProduction sites
testing equipment for
Sales and information gathering sites
automobile development

Priority regions
Future target regions8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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