Top Message

Contributing to the maintenance and development of asafe, secure, and comfortable society as a global
enterprise that continually creates new technologies
Following the General Meeting of Shareholders held in
August 2013, Hiroshi Tsuchida was appointed as
Chairman and Kenzo Terashima was appointed as
President. Our new Chairman and President hereby
explain our initiatives moving forward.
In the DASH 2015 three-year medium-term
management plan launched in fiscal 2012, our targets
for fiscal 2014 are set as follows: net sales of 52.0
billion yen; overseas net sales ratio of 50% or higher(26.0 billion yen); operating income of 3.6 billion yen(operating income margin of 7%); ordinary income of
3.6 billion yen; net income of 1.8 billion yen; and ROEof 8% or higher. Under an environment where theeffect of “Abenomics” is expected to drive an
economic recovery, in order to achieve our targets, weplan to further expand our Transportation Systems
and Industrial Systems segments internationally, andin regard to profits, we will in particular strive to makeour Industrial Systems segment profitable.
In fiscal 2013, demand for renewals in the domestic
railway market has recovered. Overseas, we havestarted shipping aforementioned electrical equipment
for the “LRV” in Los Angeles, and we have also won
contracts for high-speed railroads and subway
systems in China thanks to the steady market there.
We can thus expect strong growth in sales in ourTransportation Systems segment. China and North
America will remain the key targets in our overseas
sales activities, and we will also make a strategic
move focusing on the Indian and Southeast Asianmarkets centering on the Delhi Liaison Office we haveopened in India in August 2012.

In the Industrial Systems segment, we expect alarge increase in orders for testing equipment for
automotive development and a recovery in capital
investment thanks to the upturn of the Japanese
economy. During fiscal 2013, we also plan to open
representative offices in Thailand and other countries
in Southeast Asia, in order to strengthen ourexpansion in sales of motors and inverters for
production facilities into this region. Meanwhile, wehave begun full-scale entry into the market for motors
and inverters for construction equipment around thesummer of 2012. We believe that these initiatives will
make our Industrial Systems segment profitable in thisfiscal year.
In the Information Equipment Systems segment,
we are actively committed to capturing the demandrising from the revision to the consumption tax onequipment relating to railway station operations byleveraging the growth in our customer base won
through the development of ticket issuing handy
terminals.
Through the above initiatives, we will strive toexpand our business in all three segments, increase
our corporate value as well as continuously contributeto the maintenance and development of a safe,secure, and comfortable society by continuing atireless challenge to technological innovation and byoffering high-quality products and services.
We ask for the continued understanding of ourbusinesses of our stakeholders.

Long-Term Vision
Integrating the exceptional motor drive technologies since establishment with our breakthrough advancedtechnologies to help build environmentally friendly societies through global business development.

The DASH 2015 Medium-Term Management Plan
In June 2012, we began our DASH 2015 three-year medium-term management plan. We will aim to achieve
further growth chiefly by expanding overseas businesses.

Fundamental Policy
The Toyo Denki Group is committed to drastically improving its corporate value and thoroughly strengthening its managementfoundation in order to become a Group well adapted to the new era as it approaches 2018, the 100th anniversary of its founding.

(1) Strengthenbusiness overseas(2) Increase market
share in Japan(3) Develop newbusinesses and products(4) Promote alliancestrategy

Promote automotive electric
equipment business

Establish a global businesspromotion system
We will expand into India and Southeast Asia
while further cultivating and expanding ourmarkets in China, the U.S., South Korea, andTaiwan. We will also expand and newly
establish overseas production bases and fortify
alliances.

Develop new products
and new technologies

We will establish the commercial production of
automotive electric equipment. We will also
open up new business fields suited to thetrends of “wide use of electrical operation” and“environmental suitability.”

We will focus on development of new strategic
products while reorganizing and expanding
our research and development departments.
We also intend to acquire certification throughinternational attestation.

PrincipalMeasures

Pursue cost reduction, highquality, and high reliability

Establish and promote
dynamic corporate culture
We will improve the pleasant environment ofeach workplace. Furthermore, we will procurenext-generation human resources andcapacity-development systems.

(5) Be consistent for
efficient management

We will strengthen our cash-generating
potential by implementing drastic cost
reductions in production and management
departments as a whole and by improving
asset efficiency. In addition, we will strengthen
our quality control systems.

Promote CSR activities
We will establish CSR activities and expand
their sphere.

Progress and Plans in the DASH 2015 Medium-Term Management Plan
Net sales (Unit: Million yen)
33,000(forecast)

36,00052,000Operating income (Unit: Million yen)

3,600

(forecast)(forecast)

1,500

700

30,575

Kenzo Terashima
President

Hiroshi Tsuchida
Chairman

Net income (Unit: Million yen)

2014

1,800350

2013

Overseas net sales (Unit: Million yen)2014

26,000FY 20123,600(forecast)

1,500

750

(forecast)(forecast)

1,150
2013

Overseas net sales ratio (%)

2014

FY 201250.0

Return on equity (ROE) (%)(forecast)2013(forecast)

2014

8.0

(forecast)

750(forecast)722
FY 2012(forecast)

1.6(forecast)(forecast)

5

FY 2012

Ordinary income (Unit: Million yen)

4.2

(forecast)(forecast)

2013

7.0

(forecast)

2.1(forecast)

501
FY 2012

Operating income ratio (%)(forecast)

23.4

7,234
2013

2014

FY 2012

2013

2014

FY 20124.320132014

FY 2012

2013

2014

Toyo Denki Seizo Report 20136