Financial Results Briefing
First Half of Fiscal 2012
(Ended November 30, 2012)

January 15, 2013
Toyo Denki Seizo K.K.

Program Briefing on Financial Results:
About 25 minutes
1. Overview of Financial Results for the First
Half of Fiscal 2012
2. Outlook for Fiscal 2012 Full Year FinancialResults
3. Status and Outlook for Individual BusinessSegments
4. Other Topics

 Q&A: 30 minutes
11. Overview of Financial Results for
the First Half of Fiscal 2012
(June 1 – November 30, 2012)

1-1. Key Points
Overall:
Decrease in revenues and earnings
Net sales
Operating income¥13,566 million(¥515 million)

YoY -28.0%—(-¥5,264 million)(-¥1,030 million)

YoY -36.4%
YoY -59.0%(-¥4,376 million)(-¥812 million)

Transportation Systems:
Decrease in revenues and earnings
Net sales
Segment income¥7,657 million¥565 million

Industrial Systems:
Decrease in revenues and earnings
Net sales
Segment income¥5,236 million(¥45 million)(Excluding automotive vehicle use) ¥57 million

YoY -17.2% (-¥1,090 million)
YoY -186.5% (-¥97 million)
YoY -70.2% (-¥134 million)

Information Equipment Systems:
Increase in revenues and earnings
Net sales
Segment income¥669 million¥54 million

YoY +43.8% (+¥204 million)
YoY +38.5% (+¥15 million)31-2. Overview of Consolidated Financial Results(Millions of yen)

1H
FY2011

1H
FY2012

YoYchange

1H FY2012
Forecasts

Difference

Net sales

18,83013,566-5,26414,000-444

Operating income

515(515)-1,030

(500)

-15%

2.7%

—

——

—

Ordinary income

525

(283)

-809

(500)

+217%

2.8%

—

———

Net income

303

(401)

-704

(600)

+199%

1.6%

————

Net income pershare (yen)6.29(8.32)-14.61(12.44)+4.12

Orders received

16,884

15,278-1,606

16,000-722
41-3. Overview of Business Segment Results(Millions of yen)Ordersreceived

Net sales

Segment
incomeTransportation
Systems

Industrial
Systems

Information
Systems

Adjustment
Amount1H FY2011

8,786

6,574

1,518

5

16,884

1H FY2012

7,958

6,348

967

3

15,278YoY change-828-226-551-2-1,606

1H FY201112,0336,326

465

518,830

1H FY2012

7,657

5,236669

313,566

YoY change-4,376-1,090+204-2-5,264

1H FY2011

1,377

5239(979)

515

1H FY2012

565(45)54(1,090)(515)

YoY change-812-97+15-111-1,030Total

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1-4. Factors Contributing to Changes in Operating Income¥515 million
Decrease in revenues-¥880 million-¥1,030 million

1H FY2012
1H FY2011

Decrease in overhead
expenses

Decrease in subsidiaries’
income and other income+¥40 million-¥130 million

Deterioration ingross margin

Increase inplant profitability-¥70 million+¥40 million

Eliminations and other(¥515 million)-¥30 millionPrincipal unit factors

6

1-5. Details of Non-Operating Income and Expenses
OperatingincomeOrdinary
incomeIncomebefore tax

Netincome(¥300 million)(¥400million)(Millions of yen)

Breakdown
Net interest anddividends+20

Equity in earnings ofequity-method
investments+40 (¥280 million)

Gain on foreign
currency exchange+90Life insurance premiums
refunded cancellation +80
Extraordinary loss-¥20 million(Office transferexpenses)(¥520 million)
Non-operating income
and expenses

Income tax-¥100 million+¥230 million

71-6. Consolidated Financial Position(Millions of yen)

May 31, 2012

November 30,2012

Change38,086

38,567+545

Current assets

21,415

20,973-442

Fixed assets

16,67017,629+959

Total liabilities

23,03623,652+615

9,385

11,146+1,761

Net assets

15,04914,914-135

Equity ratio

39.5%

38.7%

-0.8%

Net assets per share(yen)

312.12309.35-2.77

Total assets

Of which, interestbearing debt

Notes

8

2. Outlook for Fiscal 2012
Full Year Financial Results

2-1. Outlook for Consolidated Financial Results for Fiscal 2012
(Millions of yen)

FY2013(RevisedForecasts)

Compared with
FY2011FY2011

1H FY2012

Orders received

32,67015,27838,000+5,330Net sales

38,57013,56633,000-5,570

Operating income

1,701(515)700-1,001%

4.4%

-

2.1%

-2.3%

Ordinary income

1,788(283)750-1,038

%

4.6%

-2.3%

-2.3%

Net income

785(401)

350-435%

2.0%

-1.1%

-0.9%

Net income per share(yen)16.29(8.32)

7.26

-9.03
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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) Correction in foreign currency exchange rates; trend toward aweakening yen

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

IndustrialSystems(1) Growing expectation surrounding a recovery in domestic capital
investment centering on upgrade demand(2) Expectation surrounding growth mainly in South Korea andSoutheast Asia

Information
Equipment
Systems(1) Settled orders in IC-compatible equipment relating to railway station
operations; focus on renewal demand(2) Expectations that energy efficient remote monitoring systems will help
expand the market

123-2. Transportation Systems(1) Consolidated financial resultsfor 1H FY2012(2) Forecast for consolidated
financial results for FY2012(Millions of yen)

1H
FY2011

1H
FY2012

YoYchange

FY2011FY2012
Forecast

YoYchange

Ordersreceived

8,786

7,958-828

Ordersreceived

17,506

21,200+3,694Net
sales

12,033

7,657-4,376Net
sales

23,991

17,500-6,491

Segment
income1,377565-812

Segment
income2,7011,770-931

Profit
ratio

11.4%

7.4%-4.0%

Profit
ratio

11.3%

10.1%

-1.2%

13

3-3. Industrial Systems(1) Consolidated financial resultsfor 1H FY2012(2) Forecast for consolidated
financial results for FY2012(Millions of yen)

1H
FY2011

1H
FY2012

YoYchangeOrdersreceived

6,574
6,297

6,348
6,121-226-176

Net
sales

6,326
6,177

5,236
5,029

Segment
income152191

Profitratio10.8%
3.1%

FY2011FY2012
Forecast

YoYchangeOrdersreceived

12,43911,932

14,70014,200+2,261+2,268-1,090-1,148

Net
sales

12,265
11,761

13,50012,900+1,235+1,139(45)57(97)-134

Segment
income1253
534

820
950

+567
+416

—
1.1%—
-2.0%

Profitratio1

2.1%
4.5%

6.1%
7.4%

+4.0%
+2.9%

Note: Figures in blue exclude automotive vehicle use data14

3-4. Information Equipment Systems(1) Consolidated financial resultsfor 1H FY2012(2) Forecast for consolidated
financial results for FY2012(Millions of yen)

FY2011FY2012F
orecastYoYchange

Ordersreceived

2,714

2,100-614+204

Net
sales

2,303

2,000-30354+15Segment
income

666

260

-406

8.1%

-0.3%

Profit
ratio

28.9%

13.0%

-15.9%

1H
FY2011

1H
FY2012

YoYchangeOrders
received

1,518

967-551

Net
sales

465

669

Segment
income39

Profitratio

8.4%

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4. Other Topics

4-1. Global Expansion

Bolster railway electricalequipment orders in China
and strengthen collaboration
with merger partner
Strengthen activities forsecuring North Americanorders for electricalequipment

Strengthen activities for securing
Chinese,South Korea andSoutheast Asian orders forindustrial system products• Establish product supply andservices structure
Establish structure to handle
Opened a liaison
office in Delhi, India in orders for electrical equipment
for Indian railroads
August 2012
• Utilize alliances…Overseas bases…Priority regions for leveraging alliances174-2. Transportation Systems
 Order received for a full set of rail carriage electrical equipment for
the Los Angeles light rail vehicle (LRV) projectToyo Denki’s North American subsidiary, TOYO DENKI USA, INC., received an order for the contract
won by Kinki Sharyo. The order comprises a full set of rail carriage electrical equipment(propulsion inverters, traction motors, and driving gear units) for the Los Angeles LRV projectOrders Received• First order: 78 vehicles; approximately ¥2.6 billion(Portion manufactured in Japan: ¥0.2 billion; Portion manufactured in the US: ¥2.4 billion)
Delivery / Sales Period• Delivery to commence from June 2013
• Plans to record the bulk of sales by FY2014

Option• Option: Also continue efforts to secure orders for
157 vehicles (approximately ¥4.0 billion)• Plans for delivery by 201918

4-3. Transportation Systems
 Following supply to JR West in June 2012, Toyo Denki delivered
its E3 Solution railway power storage system to Tobu Railway Co., Ltd.
in July 2012
The E3 Solution System absorbs and stores the regenerative energy that is produced when braking todecelerate or stop. Moreover, the System discharges the stored energy when trains accelerate.
The railway power storage system delivered to Tobu Railway compensates for the increased burden
during peak operating hours attributable to the introduction of new vehicles and changes in train
schedules.

194-4. Industrial Systems
 Robust inquiries for automotive testing equipment• Delivered simulation testing equipment for the development of the gasoline-fueled,hybrid, and electric vehicles of each major automobile manufacturer in Japan• Inquiries also from affiliated component manufacturers• Deliveries overseas to the local subsidiaries of Japanese manufacturers and major
automobile manufacturers in South Korea(Millions of yen)

1H Results

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4-5. Information Equipment Systems
 Orders received from JR Shikoku for the upgrade of ticket issuing handy
terminals
Following on from JT Tokai and JR West, orders received from JR Shikoku for theupgrade of ticket issuing handy terminals

JR Kyushu
New orders received; delivery
commenced in 2012

Ticket issuing handy terminal

JR Central
Continuous stream of orders received
since operations commenced in 1987

JR WestOrders received for the upgrade of equipment;delivery commenced in 2012

JR Shikoku
Orders received for the upgrade of equipment;delivery to commence in 201321

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

Inquiries
PR, IR, and CSR Department, Management Planning Division
Toyo Denki Seizo K.K.
Phone: 03-5202-8122
Email: contact@toyodenki.co.jp

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

Fiscal year

23

Reference: Performance Trends in Transportation Systems,and Forecast(Billions of yen)
10
28.0

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

25.6

25

23.7

20

19.8

18.7
16.3

15

240

19.1
17.5

17.2

14.8

5

3.50
3.05

105

1.55

0.98

1.60

1.50

2.70
1.77

1.76

0.54

0.51
00
2003

2004

2005

Grow Up 123

2006

2007

2008

Innovation 90

2009

2010

2011

Challenge Up Plan

2012

2013

2014 Fiscal year
Dash 201524

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

（0.75）
Fiscal year

Grow Up 123

Innovation 90

Challenge Up Plan

Dash 201525

Reference: Information Equipment Systems Financial
Results Trends, and Forecast(Billions of yen)

(0.10)(0.12)(0.03)
Fiscal year

Grow Up 123

Innovation 90

Challenge Up Plan

Dash 201526

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

2,500
Capital expenditure
Depreciation expenses

2,018

2,000
1,500
1,500
1,173
1,000
562
374
500
334 371

819
730

666
406

1,050
958

1,169 1,307
1,145
1,142
1,000
950

507

02003

2004

Grow Up 123

2005

2006

20072008

Innovation 90

2009

2010

2011

Challenge Up Plan

2011

Fiscal year

Dash 201527

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

1,400
1,200
1,000
1,000

917
811

800

675665

2004

2005

807

826798

720

600
425
400
2000
2003

Grow Up 123

2006

2007

Innovation 90

2008

2009

2010

2011

Challenge Up Plan

2012

Fiscal year

Dash 201528

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

(Persons)

Employees (End of fiscal year)

Change of calculation benchmark

16

1,300

14

1,177

121081,023
8.8

1,071
9.2

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

9.6

9.7

9.4

9.8

1,204
10.0

1,220
1,200
10.0

1,100

9.8

1,0006900

42800
Personnel expenses

0700
2003 2004 2005 2006 2007 2008

Grow Up 123
グローアップ１２３

Innovation 90

2009 2010 2011 2012

Challenge Up Plan

Fiscal year

Dash 2015

29

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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