Transportation Systems Segment

Supporting the development of railway
infrastructure worldwide through the supply of highquality electrical equipment for rail vehicles
Business Overview

Percentage oftotal net sales

We contribute to the development of railway infrastructure by supplying the world withelectrical equipment for rail vehicles used for various forms of city transit such as
subways, LRVs (light rail vehicles), and APMs (automated people movers), as well as
high-speed railroads such as the Shinkansen.

22,198 million yen(Up 28.1% year on year)

Segment Income

2,374 million yen(Up 24.1% year on year)

Profits increased due mainly toincreased revenue andi m p ro v e m e n t s i n s u b s i d i a r yearnings.

2012

2013

FY 2011

2012

2013

FY 2011

2012

2,374

2,701

29,790FY 2011

Segment Income (Unit: Million yen)

22,198

Sales increased sharply as aresult of a recovery in vehicle
demand in Japan, as well as
strengthened efforts for overseas.

17,324

Net Sales

20,940(Up 42.3% year on year)

In addition to an increase inJapan, overseas orders increased
significantly, including high-speedrailroad and subway contracts in
China as well as LRV in the U.S.

17,506

Orders Received

29,790 million yen

Net Sales (Unit: Million yen)

23,991

Orders Received (Unit: Million yen)

Results for fiscal 2013

63.5%

1,913

Business Report2013

T O P I C SInternational Railway Industry Standard (IRIS) certification acquired for rail vehicle auxiliary power supply
Company acquired International Railway Industry
T heStandard(IRIS) certification for “auxiliary power supply(SIV)” in September 2013 in the field of rail vehicle auxiliarysystems.
The IRIS is an international standard that calls for highquality and safety in the rail industry, and acquisition of theIRIS certification is recommended in Europe for railwayre l a t e d t r a n s a c t i o n s i n c l u d i n g m a j o r r a i l v e h i c l emanufacturers.
This marks the first time that certification has beenacquired for an auxiliary power supply in Japan, and we will
work to acquire IRIS for other products as well. We will also
work to further promote global expansion of theTransportation Systems segment as we aim to expand
sales of our electrical equipment for rail vehicles.

10 Transportation Systems segment
11 Industrial Systems segment
12 Information Equipment Systems segment
13 Expansion of New Businesses
Auxiliary power supply (SIV)

14 Research and Development/Intellectual Property
9

Toyo Denki Seizo Report 201410

Industrial Systems Segment

Information Equipment Systems Segment

Supplying advanced motor drive technology tocontribute to improvement of efficiency in ourcustomers’ production facilities

Developing and manufacturing railway station
operating equipment and remote monitoring systems
that contribute to improvement of operational efficiency

Business Overview

Business Overview

536 million yen

FY 2011

2012

2013

FY 2011

2012

2013

FY 2011

2012

2013

348 million yen(Up 31.3% year on year)

FY 2011

2012

2013

FY 2011

2012

2013

FY 2011

2012

348

1,8282,303

Segment Income (Unit: Million yen)

Profits increased due to increased
revenue.

2013

T O P I C S

Testing system for automobile development

Remote monitoring system for agricultural facilitiesr testing system for automobile
O udevelopment
is composed of a high-cooperation with JAPAN OPERATOR CO.,I nLTD.,a company that manufactures products

speed and high-response inverter, low-inertia
motor, mechanical system, and measurement
operation system, and is used in thedevelopment sites by major automobile
manufacturers and automobile parts
manufacturers in performance evaluation tests
and endurance tests for the traction systems
of not only standard gasoline vehicles, but also
for hybrid vehicles (HEVs) and electric vehicles(EVs) that are expected to become increasingly
widespread in the future.
We support the development of nextgeneration vehicles by providing highly
accurate and reliable testing systems that canhelp customers reduce development time.

1,701

Sales increased due toreprogramming of railway station
operating equipment, etc.
corresponding to the increase in
consumption tax.

Net Sales (Unit: Million yen)

1,673

536
11,542

12,265433(Up 7.5% year on year)

Segment Income

T O P I C S

Testing system for automobile
development
System configuration
High-speed andhigh-response inverter
Low-inertia motor and DSD series
Measurement operation system

Machine system

Transmission testing bench for FF vehicles

11(Up 8.4% year on year)

1,828 million yen

Profits increased due to improved
profitability at factories.

(Up 23.8% year on year)

1,673 million yen

Orders for both railway station
operating equipment and remotemonitoring systems increased.

5.2%

265

Segment Income

Orders Received (Unit: Million yen)

Results for fiscal 2013

Net Sales253(Down 5.4% year on year)

Segment Income (Unit: Million yen)

10,924

10,924 million yen

Sales decreased slightly for thesame reason underlying thedecrease in orders received.

11,097

Net Sales

Net Sales (Unit: Million yen)Orders Received

11,457(Down 3.1% year on year)

Orders Received (Unit: Million yen)

12,439

11,097 million yen

Orders decreased slightly due toslightly weak orders received forinfrastructure-related despite
being robust for testing systems
for automobile development andcapital investment-related.

1,544

31.3%

Results for fiscal 2013

Orders Received

Percentage of
total net sales

We provide “railway station operating equipment” including commuter pass issuingmachines and onboard ticket vending machines (ticket issuing handy terminals) as well
as remote monitoring systems that offer excellent customization qualities incombination with remote monitoring terminals developed based on programmablecontrollers (PLC), various communication networks, and our cloud servers.

2,714

We propose optimal systems that suit needs of our customers using programmablecontrollers (PLC), intelligent inverters, and high-efficiency motors and allow customers
to improve the efficiency of production facilities and shorten the period for development
work.

666

Percentage of
total net sales

including control equipment for greenhouseenvironments, we have developed the “HouseMail F” remote monitoring system for agricultural
facilities that allows the visualization of aspects
including temperature and moisture within vinyl
plastic hothouses and greenhouses.
This system contributes to efficient agriculturalmanagement by not only allowing standard
monitoring of agricultural facilities, but also byimmediately delivering warning emails tocustomers in the event of abnormalities, such as
power outages or sudden changes intemperature at greenhouses, and by allowing
customers to check the status of agricultural
facilities in real-time as necessary from their
computer or mobile phone at home or the office.

Cloud
serverHouse Mail F Agricultural facility
Home or officecomputer

Customer’s mobile phone

Example of a cucumber farmToyo Denki Seizo Report 201412

Expansion of New Businesses

Research and Development/Intellectual Property

Continually expanding our unique motor drive
technologies to “automotive electric equipment”
and “mechanicalizing of industrial machines” fields

R&D to support the development of social
infrastructure and supporting frameworks
Research and Development

Business Overview

Reference:Orders received and net sales

Net Sales (Unit: Million yen)

396

504

507

Orders Received (Unit: Million yen)507
FY 2011

2012

2013

FY 2011

2012

2013

Our new business starts with the receipt of orders for the development and design of prototypes frommanufacturers of construction machinery, automobiles, industrial machinery, and other products.
Above figures are our orders received and net sales for the past three years for reference.

T O P I C S

Dissolution of ELETT CORPORATION
Reason for the dissolution
The Company and TOYOTA INDUSTRIES CORPORATION( “ T O Y O TA I N D U S T R I E S ” ) e s t a b l i s h e d E L E T T
CORPORATION (“ELETT”) as a joint venture andconducted operations in an aim to jointly develop andprovide motors, inverters, and electric traction systems
with excellent environmental performance for the industrialmachine field. However, while it is certain that growth canbe expected for the market for motors and inverters forindustrial machineries and electric traction systems in thefuture, dissolution of ELETT has been decided as we are
currently locked in the prototype stage before mass
production and it is not possible to secure sufficient sales
for maintaining this joint venture project.

Cooperation between the two companies going forward
It has been decided to partially revise the Business andCapital Alliance Agreement concluded between the Company and TOYOTA INDUSTRIES on February 21, 2011
and continue the capital alliance and cooperation in a new13form. This cooperation will include (1) joint development
aimed at improving mechanicalizing technologies and (2)entry into industries and fields not restricted to the conventional framework.
Both companies will continue to contribute to the development of electric traction of industrial machines supported by increasing environmental awareness and needs forfuel economy improvements.

Sequence of events up to the dissolution of ELETT
February 21, 2011 Conclusion of Business and Capital
Alliance Basic Agreement between theCompany and TOYOTA INDUSTRIES
May 16, 2011

Establishment of the joint venture “ELETT”

February 20, 2014 Conclusion of new Business and Capital
Alliance Basic Agreement between theCompany and TOYOTA INDUSTRIESMarch 31, 2014

Dissolution of ELETT

creation and expansion of these products. That is, we
actively promote development of technologies of ourexisting businesses and basic research that support
this development as well as development of newproducts that expand our businesses.

Results and topics from fiscal 2013

278

261

We develop and manufacture “automotive electrical equipment,” which
supports hybrid electric vehicles (HEVs), electric vehicles (EVs), andconstruction machinery and motors and inverters supporting themechanicalizing of industrial machines as a new core business for theCompany alongside our Transportation Systems and Industrial Systems
segments.
Currently, orders received, net sales, and profits and losses of theseproducts are included in our results for the Industrial Systems segment.
We will continue R&D going forward with this business as the drive for
expansion of our businesses and actively work to receive orders with aneye to the global market.

Our research and development system consists of theresearch laboratory and the development divisions ineach business unit. With regard to our R&D activities,
we seek to create products that fully satisfy ourcustomers in Japan and overseas and challenge theSegment

Project
Fully enclosed induction traction
motorTransportation
Guidance display system
Systems

Description
Completed a fully enclosed induction traction motor for trains thatfocuses on the reduction of maintenance labor.
Completed joint development of guidance display system for inside rail
vehicles as part of a business alliance with FUJI ELECTRIC CO., LTD.

Electric door operating equipment

Completed an electrically-powered door device that reduces aircompressor volume and enables finely-tuned door operation.

Inverter-compatible products

Developed the unique “DC66” product that operates DC motors ininverters is compatible with VF66B inverters.

Programmable controller (PLC)

Completed the embedding of function in the μGPCsH part of our PLCs
that enables desktop simulation of machinery and motor operations.

Motors for automotive test
equipment

Developing a 20,000min-1 motor to follow the 16,000min-1 motor(already developed) in ultra-fast motors for EVs and HEVs.

Next-generation all-in-one ticketingmachines (railway station operating
Information equipment)
Equipment
Systems
New remote monitoring terminal

Completed preparations for the mass production of next-generation all-inone ticketing machines that are main products for the Information Equipment
Systems segment.

Industrial
Systems

Scheduled to complete mass production during fiscal 2014 of remotemonitoring terminals for four promising fields (industries) that are sales
targets.

Intellectual Property
Our intellectual property is placed as a key corporate
resource. Our intellectual property department isresponsible for the management of intellectual
property and our research laboratory and thedevelopment divisions in each business unit actively
apply for patents and utility models.
In the overseas markets which we expect to furtherexpand our businesses, we have started to actively
engage in activities concerning our intellectual
property in order to protect our technologies andbrand.

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

80

26066
845
040

64
204559
40
51
36

151

254

450 25 3Overseas
Overseas52 2222222011

2012

2035
3330

0300FY200920102013

Toyo Denki Seizo Report 201414