Transportation Systems Segment

Electrical equipment for rail vehicles
that responds to demand for railway
infrastructure in Japan and worldwide
Business Overview
We delivered electrical equipment for the Hokkaido Shinkansen, which started its service in March 2016.

Percentage of
total net sales

Overseas, we received orders for subway contracts in Southeast Asia and the Middle East. In the future,

67.3%

we will promote overseas expansion even more aggressively as a driver of growth through means suchas expansion of maintenance business in China.

(Down 0.4% year on year)

Segment Income2,964 million yen

TOPICS(Down 4.9% year on year)

Segment profit decreased 4.9% compared with the previous fiscal year to2,964 million yen.

FY 2013

2014

2015

FY 2013

2015

2,964

3,117

2014

2,374

26,75726,757 million yen

Net sales totaled 26,757 million yen, a
0.4% decrease from the previous fiscalyear, due to a decrease outside Japan,
despite an increase in Japan.

Segment Income (Unit: Million yen)

26,869Net Sales

22,198(Up 9.4% year on year)

Net Sales (Unit: Million yen)

27,092

27,092 million yen

Orders received increased 9.4% compared with the previous fiscal year to27,092 million yen, led by upturns bothin Japan and outside Japan.

24,759Orders Received

29,790Orders Received (Unit: Million yen)

Results for fiscal 2015

FY 2013

2014

2015

Development and Delivery of Regenerative Power Storage System“E3 Solution System” with Large Capacity

ith regard to “E Solution System,” our highly acclaimed regenerative power storage system, we developed the system with large capacity andW delivered
it for the Tokyo Tama Intercity Monorail. The system has an output of 1,000 kW per set, and realizes an output of 2,000 kW by provid3

BUSINESSing two sets. In addition to the existing functions such as regenerative power absorption, the system has a function for emergency running when trains
are stopped between stations due to power failures at substations, so that trains can safely evacuate to the nearest stations. We will continue to contribute to disaster countermeasures and an energy-saving society through the spread of the system.
Features of E3 Solution System

910

Transportation Systems segment

11

Industrial Systems segment

12

Information Equipment Systemssegment

13

Expansion of New Businesses

14

Research and Development/
Intellectual Property

Inemergency

Supplying power as power source systems
for train running

In normal
conditions

Storage of regenerative power and supplyof power when needed
Lithium-ion battery

Lithium-ion battery
Interruption ofpower supply

Substation

Powered travel

Interruption of
power supply

Discharge

Supplying power for
emergency

Substation

Powered travel

Substation

Effective use of regenerative
power (energy saving)

Regenerative braking

ChargeDischarge

Reduced power supply
loss (energy saving)

Substation

Powered travel

Toyo Denki Seizo Report 2016

10Industrial Systems Segment

Information Equipment Systems Segment

Enhance functions of high-efficiency inverters and contribute to upgrades, energy savings and space savings for production facilities

Provision of railway station operating equipmentthat achieves multi-functions and a compact sizeand IoT/M2M solutions in various fields

Business Overview
We develop and manufacture general industrial machinery and equipment, testing equipment for automobile development and infrastructure equipment.
For the “VF66 series” of intelligent inverters, we developed “VF66G” as a lineup that supports interconnected systems, and strengthened support to small-scale hydropower generation, wind power generation and other distributed power source systems. In addition, we developed a 500 kW-class inverter
configured with single unit, as compared to a previous configuration of units connected in parallel, thereby significantly reducing the space required for installation of a control panel. We will continue to respondto demands for upgrades, energy savings and space savings for production facilities, and work to expand
the business in and outside Japan.

Percentage of
total net sales

Business Overview

30.3%

We develop and manufacture railway station operating equipment that can achieve mechanization andPercentage oftotal net sales

reduction of labor in railway station operations of railway operators. We also contribute to improvements

2.4%

of efficiency in operations through IoT/M2M solutions and power visualization solutions using mobile
phone networks and cloud servers for monitoring and control.

Results for fiscal 2015

TOP

ICS

D

DC drive mode of the intelligent inverter
VF66B

irect current motors (DC motors) were used as the main type of variable-speed drive from the 1970s to the first half of the 1990s, andthey were adopted in various production facility lines in combination withthyristor Leonard equipment.
The DC drive mode of the latest inverter “VF66B” helps to control investment costs as DC drive mode can convert control equipment into an
inverter with the DC motors as is for equipment using DC motors that
continues to operate. This can also lead to gradual updates to AC motors,
which is the next step.
In addition, the introduction of the DC drive mode will not only enabledigital control, but also enables construction of interface with various latest networks and PLC, thereby making equipment of higher performance.
Going forward, we will support the needs of customers with the products that leverage our advanced motor drive technologies.

FY 2013

2014

2015

FY 2013

2014

2015

FY 2013

2014

2015

(Up 34.1% year on year)

FY 2013

2014

2015

FY 2013

2014

2015

348

1,828
1,369

Segment profit increased 34.1% compared with the previous fiscal year to 95
million yen.

FY 201395

95 million yen

985

Segment Income

1,673

1,019

848

12,027

11,613954 million yen

Net sales decreased 15.4% year on yearto 954 million yen mainly due to a decrease in sales of remote monitoring
systems.

71(Up 20.2% year on year)

Net Sales

Segment Income (Unit: Million yen)Orders received increased 39.0% to
1,369 million yen, due to increased orders for railway station operating equipment.

954

1,019 million yen

Segment profit totaled 1,019 million yen,a 20.2% increase compared with theprevious fiscal year.

(Up 39.0% year on year)

Net Sales (Unit: Million yen)

1,127

Segment Income

1,369 million yen

2014

2015

Update steps through the introduction of the VF66B DC drive mode

Current
situation
Thyristor boardDC motor

1st Step

Equipment can be
upgraded with lower
cost and shorter
installation time.

Change from thyristor board to VF66B DC mode

TOPICS(Up 3.6% year on year)

Orders Received (Unit: Million yen)

Results for fiscal 2015

(Down 15.4% year on year)536

12,027 million yen

Net sales increased 3.6% year on year to
12,027 million yen due to increases insales of testing equipment for automobile
development and outside Japan, despite adecrease in those for social infrastructure.

Segment Income (Unit: Million yen)Orders Received

10,924Net Sales

Net Sales (Unit: Million yen)

11,421(Down 14.2% year on year)

Orders Received (Unit: Million yen)

13,31911,421 million yen

Orders received decreased 14.2% compared with the previous fiscal year to
11,421 million yen due to decreased orders for testing equipment for automobile development, processing equipment,
and social infrastructures.

11,097

Orders Received

Low cost
Short
installation
timeHigh
performance

Inverter
Board

VF66B

DC motor(DC drive mode)

2nd Step

Change from DC motor to ED motor (AC motor)

Highefficiency
EnergysavingInverter BoardED motor
VF66B(AC motor)

Running costs arelower thanks to thehigh efficiency of ourED motor.

Order received for commuter pass vending machines for
the Transportation Bureau of the City of Yokohama

order for 50 commuter pass vending machines for the Transportation BuW ereauhaveof received
the City of Yokohama. This product is a composite ticket vending machine that cansinglehandedly issue a variety of tickets such as commuter passes, standard tickets, books oftickets and special tickets. This machine is compatible with tickets of various media such as
smart cards, magnetic PET tickets, large magnetic tickets, and Edmondson old style tickets.
Furthermore, the machine enables reduction of power consumption and improved operability
thanks to a color LCD with touchscreen, and conforms to the security authorization standards of
the Congress of Japan Railway Cybernetics.
We will continue to develop and provide easier-to-use railway station operating equipment.

Composite ticket vending
machine (TID6000) Separate type

* ED motor : Toyo Denki s permanent magnet high efficiency motor

11

Toyo Denki Seizo Report 201612

Expansion of New Businesses

Initiatives in distributed power source (small-scale hydropower, wind power, biomass, wave power, tidal power, etc.)
We have been working to safely make the most of natural energy sources such as small-scale hydropower, wind power, biomass, wave
power and tidal power, by leveraging the know-how of permanent magnet synchronous generators and interconnected systems we havedeveloped over many years.
Take the small-scale hydropower generation system for instance. The system uses water as renewable energy, and effectively utilizes
water resources which have not been utilized before, such as agricultural waterways and agricultural dams. We will continue working on
effective utilization of various natural energy sources.

Research and Development
technology developments that support this development as well
as development of new products that expand our businesses.

Power Conditioner
Results and topics from fiscal 2015

Segment

Project3

Delivery of “E Solution System” with large
Transportation capacity
Systems
Development of electric door operating
equipment

EDG Permanent magnet
synchronous generator(supports 10 - 750kW)

We contribute to improvements of efficiency in operations through IoT/M2M solutions using mobile phone networks and cloud servers formonitoring and control.

Joint development of data acquisition and analysis systems for fuel cell lift trucks
In cooperation with TOYOTA INDUSTRIES CORPORATION, we have developed data acquisition andanalysis systems for fuel cell lift trucks. With this system, operation data is collected, stored in cloudservers using mobile phone communication systems, and analyzed. For the remote data management system owned by Toyo Denki Seizo K.K., we developed a data logger capable of on-board use,which enables real-time analysis of cloud servers and is equipped with information transmissionfunction. This system analyses and visualizes data on location information and operation states,
thereby contributing to optimization of maintenance services and improvement of merchantability.

Developed electric door operating equipment, in addition to the conventional pneumatic door operating equipment, in an aim of higher performance and reduction of maintenance work.
Developed a 500 kW-class inverter configured with single unit (install panels), as compared to aprevious configuration of units connected in parallel, thereby significantly reducing the space required for installation of a control panel.

Development of VF66G, inverter that supports interconnected systems

Developed “VF66G” as an inverter that supports interconnected systems for distributed powersource systems. In addition to the conventional self-supporting and linkage mode, governor control mode was added. In linkage operation, the invertor is adapted to FRT requirements*1 as astandard feature.

Enhanced security of composite ticket
vending machine

Mounted the function of protecting internal data, etc. against tampering, such as surreptitious
reading from operation screen and attacks from networks, in composite ticket vending machines
which deal with smart cards.

Zooming of monitoring items using remoteterminals

In order to zoom monitoring items, coordination function of short range wireless (ZigBee) wasadded, and as the additional units, multiple battery-powered ZigBee sensors can be used.

Research Research on globally compatible insulation
Laboratory systems for motors

Conducted research on high-voltage insulation systems for traction motors for overseas railroads,
high heat-resistance insulation systems for which materials of global standards are used, etc., inanticipation of further advancement of globalization and overseas development. We had clear ideaof actually using such systems.

Information
Equipment
Systems*1 FRT requirements: Fault Ride Through requirements

Data logger unit

Intellectual Property
Fuel cell lift trucks

Joint development of communication power generator mounted with remote monitoring system

In cooperation with Denyo Co., Ltd., we developed a communication power generator mounted witha remote monitoring system, and commenced its services. The communication power generator wasdeveloped by mounting “IORemotor,” Toyo Denki Seizo K.K.’s remote monitoring terminal, to DenyoCo., Ltd.’s engine power generator. It enables sending email alerts in case of failure and remotemonitoring through cloud services utilizing mobile phone lines. Customers can use various functions
through ASP services. We will continue to contribute to operational efficiency through provision ofeasy-to-install and affordable IoT/M2M solutions.

Description
Developed a system with large capacity for “E3 Solution System,” a regenerative power storage
system, and delivered it for the Tokyo Tama Intercity Monorail. The system comes in two sets andhas an output of 2000kW, or 1000kW per set.

Development of a 500 kW single inverter
IndustrialSystemsInitiatives in remote monitoring(IoT/M2M solutions)

13

R&D to support the development of social
infrastructure and supporting frameworks
The Group’s R&D activities are based on seeking to create products that fully satisfy our customers and challenging the creationand expansion of these products, and we actively promote development of technologies of our existing businesses and basic

 ystem upgrades of distributed power source sysStems of Toyo Denki Seizo K.K.
Bountiful experience with power companies in Japan
Interconnected system protective function
Higher efficiency by combining with permanent magnet synchronousgenerators
Islanding detection function is incorporated in inverters that support
interconnected systems
Switchable from interconnected system operation to self-supporting
operationBlack start in the absence of power source systems is possible
System upgrades of overload protection, external signal input, etc.
Output control function
A wide range of lineup with output from 10 to 750 kW, in particular,bountiful experience with output from 10 to 200 kW

Research and Development/Intellectual Property

IORemoter
Communication
power generator

Our intellectual property is placed as a key corporate resource.
Our intellectual property department is responsible for themanagement of intellectual property and our research laboratory
and the development divisions in each business unit actively apply
for patents and utility models.
In the overseas markets which we expect to further expand ourbusinesses, we have started to actively engage in activities
concerning our intellectual property in order to protect ourtechnologies and brand.

Patent applications granted
Patent applications:
Granted cases:(Applications)

8060

15125544050 25 32052 2222222011

2012

203533300FY

2013

0Overseas
Overseas62030

JapanJapan

57
16 0162014

4545

14
1402015

Toyo Denki Seizo Report 201614