Financial Results Briefing
First Half of Fiscal 2013
(Ended November 30, 2013)

January 15, 2014
Toyo Denki Seizo K.K.

Program Briefing on Financial Results:
About 25 minutes
1. Overview of Financial Results for the First
Half of Fiscal 2013
2. Outlook for Fiscal 2013 Full Year FinancialResults
3. Status and Outlook for Individual BusinessSegments

 Q&A: 30 minutes
11. Overview of Financial Results for
the First Half of Fiscal 2013
(June 1 – November 30, 2013)

1-1. Key Points
Overall:
Net sales and operating income approximately as forecastedNet salesOperating income¥15,826 million¥213 million

YoY +16.7%(+¥2,260 million)
Return to profitability (+¥728 million)

Transportation Systems:
Significant increase in revenues and earnings
Net sales
Segment income¥9,860 million¥1,064 million

YoY +28.8%
YoY +88.3%(+¥2,203 million)(+¥499 million)

Industrial Systems:
Slight increase in revenues, return to profitability
Net sales
Segment income¥5,332 million¥172 million(Excluding automotive vehicle use) ¥235 million

YoY +1.8%
Return to profitability
Return to profitability(+¥96 million)(+¥217 million)(+¥178 million)

Information Equipment Systems:
Slight decrease in revenues, decrease in earnings
Net sales
Segment income¥630 million¥17 million

YoY -5.8%
YoY -68.5%(-¥39 million)(-¥37 million)31-2. Overview of Consolidated Financial Results(Millions of yen)

1HFY2012

1HFY2013

YoYchange

1H FY2013
Forecasts

Difference

Net sales

13,57015,830+2,26016,000-170

Operating income

(520)
(—)

210
(1.3%)

+730
(—)

200
(1.3%)+10(±0)

(280)
(—)

270
(1.7%)

+550
(—)

200
(1.3%)+70(+0.4%)

(400)
(—)
(8.32)

60(0.4%)
1.20+460(—)+9.52

120(0.8%)
2.46-60(-0.4%)-1.26

15,28018,250+2,97019,600-1,350(%)

Ordinary income(%)

Net income(%)

Net income per share(yen)

Orders received

41-3. Overview of Business Segment Results(Millions of yen)Ordersreceived

Net sales

Segment
incomeTransportation
Systems

IndustrialSystems

Information
Systems

Adjustment
Amount1H FY2012

7,960

6,350

970

3

15,2801H FY2013

10,620

6,590

1,030

218,250

YoY change+2,660+240+60-1+2,970

1H FY2012

7,660

5,240670

313,560

1H FY2013

9,860

5,330630

215,830

YoY change+2,200+90-40-1+2,260

1H FY2012

570-5050-1,090-520

1H FY2013

1,060

170

10-1,040

210

YoY change+490+220-40+50+730

Total

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1-4. Factors Contributing to Changes in Operating Income
1H FY2012

1H FY2013
Increase insubsidiaries’
income+¥110 million

Eliminations and other+¥30 million¥210 million

Decrease in gross margin-¥70 million

Decrease inoverhead expenses+¥160 million
Additional
revenue effect+¥400 million+¥730 million

Increase inplant profitability+¥100 million-¥520 million
Principal unit factors

6

1-5. Details of Non-Operating Income and Expenses¥270 million¥270 million

Non-operating
income¥210 million +60 million

Income tax-¥210 million

Breakdown
Net interest and dividends+¥30 million
Equity in loss of equitymethod investments-¥10 million¥60 million

Gain on foreign
currency exchange+¥40 million

OperatingincomeOrdinary
incomeIncomebefore tax

Net
income71-6. Consolidated Financial Position(Millions of yen)

May 31,2013

November30, 2013

Change42,36046,030+3,670Current assets

21,94024,790+2,850

Cash and deposits: ¥1,250 million

Fixed assets

20,42021,250+830

Gain on revaluation of marketablesecurities: ¥900 million

Total liabilities

23,84027,070+3,2309,830

11,990+2,160Net assets

18,52018,960+440

Equity ratio

43.7%

41.2%

-2.5%

Net assets per share(yen)384.14393.31+9.17

Total assets

Of which, interestbearing debt

Notes

8

2. Outlook for Fiscal 2013
Full Year Financial Results

2-1. Outlook for Consolidated Financial Results for Fiscal 2013
No change tofull-year forecast

FY2013
Forecasts(Millions of yen)Comparedwith FY2012

FY2012

1H FY2013

Orders received

33,95018,25041,000+7,050

Net sales

30,58015,83036,000+5,420

Operating income

500

210

1,500+1,000(%)(1.6%)(1.3%)(4.2%)(+2.6%)

Ordinary income

1,150

270

1,500+350(%)(3.8%)(1.7%)(4.2%)(+0.4%)

720

60

750+30(2.4%)
14.98(0.4%)
1.20(2.1%)
15.40(-0.3%)+0.42

Net income(%)

Net income pershare (yen)10

3. Status and Outlook for
Individual Business Segments

3-1. Order Environment by Business Segment
Comments

Market overall(1) Domestic economy shows an improvement trend(2) Despite a lingering sense of uncertainty regarding China, overall
overseas improvement(3) Exchange rates hovering at current levels(1) Market in Japan bottomed out in FY2012 and is on track for recovery
Transportation(2) In international markets, demand for high-speed rail systems and urban
Systemstransportation networks continues to be strong

IndustrialSystems(1) Expect capital investment in Japan to recover. However, automotive
testing equipment segment is strong.
(2) Expectation surrounding growth mainly in Southeast Asia

Information
Equipment
Systems(1) Capitalize on demand for railway station operating equipment before
consumption tax increase(2) Expect growth in market for energy-efficient and location monitoring
solutions for remote monitoring systems

123-2. Transportation Systems(1) Consolidated financial results for
1H FY2013(2) Forecast for consolidated
financial results for FY2013(Millions of yen)

1H
FY2012

1H
FY2013

YoYchangeOrders
received

7,960

10,620+2,660Netsales

7,660

9,860

Segment income570

Profitratio

7.4%(Millions of yen)

FY2012FY2013
Forecast

YoYchangeOrdersreceived

20,94024,000+3,060+2,200Net
sales

17,32021,000+3,680

1,070+500

Segment
income1,910

2,410+500

10.8%

+3.4%

Profitratio

11.0%

11.5%

+0.5%

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3-3. Transportation Systems
 Status of confirmed/prospective electrical equipment orders for railroads outside of Japan
Project

No. ofVehicles

Beijing Subway Line 10
additional rail vehicles

192

Los Angeles light rail vehicle(LRV) option contract

97

Extension of Chengdu MetroLine 1 and additional railvehicles for Line 2
Macao Automated People
Mover (APM) option contract
Driving gear units for highspeed railroad in China

Order Value

Order Status

Start ofDelivery

Timing for
Recording Net Sales¥1.7 billion

Contract
completed2014~

FY2014~¥3.0 billion*~Contract undernegotiation

2014~

FY2014~216¥2.4 billion*~

Working tosecure order

2014~

FY2014~48¥0.6 billion*~

Working tosecure order

2016~

FY2016~¥1.0 billion*~

Working tosecure order

2014~

FY2014~(record in 3Q)* indicates projected amountLos Angeles LRVMacau APM
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3-4. Transportation Systems
 Acquisition of International Railway Industry Standard (IRIS) certification for rail vehicle
auxiliary power supplies
In Europe, acquisition of IRIS certification is recommended for rail business encompassing majorrail vehicle manufacturers. Toyo Denki will leverage the acquisition of IRIS certification to further
develop its global business.
Generating
stationTransforming
stationPantograph

Door operating
equipment
Auxiliary power supply

E3 solution system

Propulsion inverter(VVVF inverter）
Traction motor

Total train communication system (TTCS)

Driving gear unit15

3-5. Transportation Systems
 Electrical equipment for JR Tokai Tokaido Shinkansen N700A Series trains
Delivery of electrical equipment under plans to introduce
additional N700A Series trains
 N700A Series train introduction plan(based on announcements by JR Tokai):Through FY2013 13 sets (208 vehicles)
FY2014
6 sets (96 vehicles)
FY2015
6 sets (96 vehicles)
FY2016
6 sets (96 vehicles)
Shinkansen N700A(Photo courtesy of JR JR Central) Electrical equipment for JR East Japan Niigata area E129 Series trains
Delivery of electrical equipment under new rail vehicle planfor existing railway line New rail vehicle plan: Delivery starting from FY2014
2 vehicles x 30 sets (60 vehicles)
4 vehicles x 25 sets (100 vehicles) Electrical equipment to be delivered:
VVVF inverters, auxiliary power supplies, traction motors,driving gear units, pantographs, twin disk couplings,
door operating equipment

Rendering of E129 Series train(Photo courtesy of JR East)16

3-6. Industrial Systems(1) Consolidated financial results for
1H FY2013(2) Forecast for consolidated
financial results for FY2013(Millions of yen)

1H
FY2012

1HFY2013

YoYchangeOrders
received

6,350
6,120

6,590
6,470+240+350

Netsales

5,240
5,0305,330
5,210

Segment
income(50)60Profitratio—1.1%(Millions of yen)

FY2012FY2013
Forecast

YoYchangeOrders
received

11,46010,95015,00014,500+3,540+3,550+90+180

Net
sales

11,540
11,15013,00012,500+1,460+1,350170
240+220+180

Segment
income

430
590

990
1,020

+560
+430

3.2%
4.5%

—
+3.4%

Profit
ratio

3.8%
5.3%

7.6%
8.2%

+3.8%
+2.9%

Note: Figures in blue exclude automotive vehicle use data17

3-7. Industrial Systems
 Preparing to open representative office in Bangkok, Thailand (during FY2014)• Make effort to expand sales of industrial motors
and inverters throughout ASEAN region• Currently proposing systems based on highefficiency motors, to meet energy conservationneeds of local manufacturers

Japan

Nepal Bhutan

ChinaIndia• Continue proposing upgrades to existingcustomers

Bangladesh
Myanmar

LaosThailand

VietnamPhilippines

Cambodia

Bangkok
Brunei

Palau

Malaysia
Singapore

Indonesia
East Timor
Australia

High-efficiency
ED Motor

VF66 Series
intelligent inverter18

3-8. Industrial Systems
 Automotive testing equipment segment remains strong•Increase in inquiries for testing equipment for hybrid/electric vehicle development, in addition toconventional gasoline vehicles•

Also supporting international development centers opened by major Japanese automakers and autoparts manufacturers

Orders received and net sales for automotive testing equipment

5.00
4.50
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0.00

(Billions of yen)
受注（全体）
Orders received (consolidated)
売上（全体）Net sales (consolidated)

FY2009FY2010FY2011FY2012FY2013 (Forecast)19

3-9. Information Equipment Systems(1) Consolidated financial results for
1H FY2013(2) Forecast for consolidated
financial results for FY2013(Millions of yen)

(Millions of yen)

1H
FY2012

1H
FY2013

YoYchangeOrders
received

970

1,030+60

Net
sales

670

630

Segment
income50

Profitratio

8.1%

FY2012FY2013
Forecast

YoYchangeOrdersreceived

1,540

2,000+460-40

Net
sales

1,700

2,000+300

20-30

Segment
income

270

260

-10

2.7%

-5.4%

Profit
ratio

15.6%

13.0%

-2.6%

20

3-10. Information Equipment Systems
 First order for tram operation management system•

For Kagoshima City Transportation Bureau•Monitor tram position wirelessly for greater convenience to users

Operation
management
deviceWirelessdata box

Transceiver

Center base station

Wirelessdata box

Base station
optical network

Wirelessdata box
Transceiver

Advance base station (1)Data receiver

Wirelessdata box
TransceiverRoad communication device

Advance base station (2)Vehicle communication device

Data receiver

Transceiver

Tram stop

TransceiverRoad communication device

Vehicle communication device

Tram stop

Wirelessdata box

Tram

Tram

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3-11. R&D Status R&D Status
Category

Description
Development of low-vibration, lownoise driving gear unit

Transportation Development of low-loss high frequencyconverter
Systems

Industrial
Systems

R&D

Remarks
For high-speed rail
For next-generation auxiliary power
supplies

Development of in-vehicle information
display system

Jointly with Fuji Electric

Practical development of control circuitless generating system

For renewable energy applications

Research on next-generation motor andcontrol

To meet energy-saving regulations

Research to improve efficiency of onboard electrical equipment

For hybrid electric and electric vehicles

Research into applications for nextgeneration semiconductor devices

For next-generation low-loss
semiconductor converters

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