An In t ervi ew wi th the Pre si d e nt

An I nterv i e w wit h t he Pre side n t

S PEC IAL F EATURE

TOPIC S

response to the recovery of the automobile industry, actual sales are
expected from the second half or later in view of the delayed timing fororders from the industry.
In the Information Equipment Systems segment, orders of railway

Endeavoring to Increase Orders
Received and Ensure Profits byConquering a Harsh Business
Environment“Dash 2015,” the Toyo Denki Group’s medium-term management plan,
began in the current fiscal term (the fiscal year ending May 31, 2013).
President Hiroshi Tsuchida hereby explains the business conditions in
the first half and the full-year perspectives, and the future outlook forthe Group.

Hiroshi Tsuchida
President

station operating equipment received during the previous fiscal year led

manufacturers. At the same time, we endeavor to streamline ourservice system while increasing the number of local employment.

succeeded in obtaining new customers for ticket issuing handy terminals.

Dash 2015 also looks to “Develop new business and products” toensure the next stage of growth potential for our business activities. AsQ.

Please explain how you have addressed
the medium-term management plan.

part of this approach, in the industrial machinery electrification
business, we will embark on the mass production of motors andinverters for construction equipment in the second half of fiscal 2012.

Dash 2015, our new three-year medium-term management plan,

In the Information Equipment Systems segment, our new initiatives

started from the current fiscal term. As mentioned earlier, operating

include smart-grid-related projects that utilize remote monitoring

results for the first half were tough in the first fiscal year of Dash 2015.

systems and the joint industry-university development of systems to

We remain committed companywide to increasing orders received andfacilitate the visualization of electric power.

ensuring net sales and profits. In June 2012, we executed anorganizational restructuring with the aim of strengthening our executive
ability of Dash 2015 to reinforce functions by segment, clarify
operations and the chain of command, and motivate employees.
Under Dash 2015, we are promoting five issues as a fundamental

Please tell us about the full-year businessQ. outlook and future development.

The demand environment for the second half could take time topolicy and we position “Strengthen business overseas” as the mostimprove although there are expectations for an economic upturn withcritical of these tasks. We are strengthening our systems for receiving

favorable signs such as the alleviation of yen appreciation and theorders and maintenance requests in Asia, including China, and North

move away from deflation. In these circumstances, the Company will

America, with the aim of establishing a global business promotion

promote sales activities to receive new orders for sales expansion while

system in both our Transportation Systems and Industrial Systems

surely achieving net sales from the orders already received.
The Transportation Systems segment will proactively respond toAs for overseas development in the Transportation Systems

demand for renewals, which often entail an incremental increase of rail

overseas railway projects, we made proactive approaches tosegment, we registered our representative office in Delhi, India, invehicles in and outside of Japan. The Industrial Systems segment iscontrolling authorities to achieve orders regarding the extension andAugust 2012 as a local facility for information collection and sales

facing a situation in which sales expansion centering on testing

The operating results in both the Transportation Systems and Industrial

maintenance services for subway lines in Beijing and Chengdu, forsupport toward its full-fledged operation from the beginning of 2013. In

equipment for automobile development can be expected. From an

Systems segments were affected by a demand environment in andwhich the Group has a good track record of deliveries and an

November 2012, we received orders for electrical equipment for railinternal perspective, we will promote cost reduction by leveraging joint

outside of Japan that was tougher than anticipated, thereby causing usestablished reputation. We are focusing on the railway market in Chinavehicles, which were bound for the “LRV” new-type vehicles, from Los

purchases and overseas procurement, as well as the improvement ofto fall short of our consolidated performance targets for the first half.

even though Japan and China are currently experiencing political

Angeles County, California, through TOYO DENKI USA, INC., a U.S.

production efficiency by implementing the value engineering (VE)

Although we strove to increase the number of orders received, whichtension. Regardless of such efforts, however, the Group failed to breaksubsidiary of the Company. Fully taking advantage of existing facilities,

technique. Moreover, we will strive to ensure earnings through generaldecreased in the previous fiscal year, to increase net sales for thethrough the harsh competition to receive new orders. Furthermore,these sales operations produced solid results. Especially in China, ourcost-cutting measures to continuously maintain a stable return of

period under review, they declined due to the difficult recession that

expanded design and development expenses from investment in new

business activities to receiving orders is ongoing, including sales

profits to shareholders.

has been apparent since the summer of 2012.

projects also put pressure on profit.

approaches by local joint ventures and venture partners, as well as

Please tell us about the business conditions

Q. and results for the first half of fiscal 2012.

In particular, new orders in the Transportation Systems segment
have decreased as fiscal 2012 falls in a cyclically low period for

1

Korea and Taiwan. With motors and inverters for production facilities as
major products, we engage in sales to local and Japanese

to successful net sales for the period under review. In addition, wesegments.
domestic railway companies investing in new rail vehicles. As for

The Industrial Systems segment strives for overseas businessdevelopment targeting Southeast Asia while centering on China, South

Although the growth of orders for testing equipment for automobile
development was anticipated in the Industrial Systems segment insales activities conducted by Toyo Denki (Beijing) Co., Ltd., our core

We kindly ask for the continued support and understanding of allshareholders.

China facility founded in 2011.

2

Example of attaching several power sensors

Supporting the visualization of electric power with wireless

Toyo Wireless Measurement System
The Toyo Wireless Measuring System is simple to install and facilitates electricalmeasurements of electrical equipment in existing plants and buildings. Its major
components are a sensor (transmitter) equipped with wireless functionality and a receiver(TURTLE-RW) to receive wireless communications.
There are various sensor types available: the“TURTLE-I” current sensor, the “TURTLE-P” powersensor, the “TURTLE-A” analog sensor and the“TURTLE-PL” pulse sensor. They provide measurement
data such as current, voltage, electrical energy,
temperature and flow rate.

Example of attaching a pulse sensor

S P E C I A L F E AT U R E

Introduction of Products by the IT Business Unit
Usage of electrical energy may begrasped

Energy Control System
μTURTLE-EMS, an energy control system, isan energy control application that operates
on Windows-based PCs. μTURTLE-EMS
collects measurement data from “TURTLE”
wireless sensors and wired sensors (electricalenergy monitors) to control quantities
consumed such as electrical energy. The
controlled data are tabulated in graphs ofquantities consumed and in daily, monthly
and annual reports by area and byapplication (e.g., lighting, air conditioning,motive energy) so that managers can easily
analyze the relevant data. System managers
therefore can easily understand how electricalenergy is consumed using the indicated data.
We intend to promote the provision ofApplication Service Provider (ASP)–typeservices, for which a power monitoring server
controls electrical energy quantities
consumed via the Internet and allows users
to confirm them on a Web screen, throughsystem equipment installation in each store ortenant.

3TOPICSDELHI LIAISON OFFICE opened in India

Head office moved to Yaesu, Chuo-ku, Tokyo

The Company established a liaison office in Delhi, India, wherehigh economic growth is expected in the future and further
vigorous investments for railway and road infrastructure areexpected. The office will work as the facility for informationcollection and sales support to expand and reinforce thebusiness activities of the Transportation Systems segment.

The Company moved its head office to Yaesu, Chuo-ku,
from Kyobashi, Chuo-ku, Tokyo on September 10,
2012. This relocation aimed to turn the business aroundand raise space usage efficiency by improving our officeenvironment.
By seizing theoccasion of thisrelocation, all employees
are determined tovigorously push forward
on a new note. We
look forward to yourcontinued support andunderstanding.

(1) N a m e : TOYO DENKI SEIZO K.K. DELHI LIAISON OFFICE(2) Location : Delhi, India(3) Registration : August 23, 2012
completiondate(4) Business : Market research, information collection and sales supportDelhi

Example of system configuration (for overall plant or commercial building)Wireless LAN
collection of data

Distribution board (wireless sensor)	Building in which our head office
is tenanted
Appearance(Tokyo Tatemono Yaesu Building)

India
Power monitoring serverSingle-phase 3-phase, 3-wire Wireless

μTURTLE-EMS (Windows)

Power meter

Measurement data

Distribution board (wired sensor)
Single-phase

Converter(RS485-LAN)3-phase, 3-wireOffice

Please cooperate in submitting

Managers
Collection of RS485communications

Cubicle (wireless sensor)

Web screen of theμTURTLE-EMS

Wireless LANOrdinaryusers

Single-phase 3-phase, 3-wire WirelessPower meter used formeasurements in relation totransactions of electricity

Web screen ofa ledger sheet

the Questionnaire to Shareholder

The Company provides theQuestionnaire to Shareholders,which aims to utilize the resultsfor its corporate management
and future IR activities forinvestors by soliciting valuable
opinions from our shareholders.
Please answer and return theQuestionnaire Postcard inserted
in this Business Report for theSecond Quarter.

s.

New CORPORATE PROFILE prepared

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「第152期第2行
四半期のWe have recently posted the CORPORATEPROFILE, which includes descriptions ofour businesses, on the Company’s
homepage. Please visit our Website.

13:04:4
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15:47:51

Inquiries:
PR, IR and CSR Department,
Management Planning Division4