Transportation Systems Segment

Business Report

Supporting safe, secure, and comfortable railtransportation through a variety of products
Business Overview
Percentage of
total net sales

We contribute to the advancements of railway systems worldwide and to safe, secure,and comfortable rail transportation through the development and manufacture ofelectrical equipment for rail vehicles, including propulsion inverter (VVVF inverter),traction motor, driving gear unit and current collectors (pantographs).

56.7%

Results for fiscal 2012

1,913 million yen

2,701

FY 2010

3,0552012

Profits fell due to the impact ofreduced revenues.

1,913

Segment Income

17,324(Down 27.8% year on year)

Segment Income (Unit: Million yen)

23,991

17,324 million yen

A slowdown in demand for renewals
reduced sales in Japan and there
was a great decline in sales ofproducts for high-speed railroads
and subway systems in China.

25,657

Net Sales

Net Sales (Unit: Million yen)

20,940(Up 19.6% year on year)

Orders Received (Unit: Million yen)

17,506

20,940 million yen

Although domestic orders only
grew slightly, overseas orders
including electrical equipment forthe LRV in Los Angeles, U.S.
increased.

21,756

Orders Received(Down 29.2% year on year)
FY 2010

2011

2011

2012

FY 2010

2011

2012

Auxiliary power supply (SIV)

A railway power storage solution, E3 Solution System(Delivered to TOBU RAILWAY CO., LTD.)

Pantograph

Door operating equipment

Driving gear unit

10 Transportation Systems segment
11 Industrial Systems segment

Total train communication system(TTCS)

12 Information Equipment Systems segment

Traction motor

13 Expansion of EVs and HEVs
Twin disk coupling

14 Research and Development/Intellectual Property
Propulsion inverter (VVVF inverter)

9Toyo Denki Seizo Report 201310Industrial Systems Segment

Information Equipment Systems Segment

Achievement of efficient energy usage with
our advanced power electronics

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

Business Overview

Business Overview
Percentage of
total net sales

We leverage our advanced motor drive technology to develop and manufacture
products and systems that achieve efficient energy usage and meet our customers’
needs in a wide range of fields, including testing equipment for automobile
development, systems for production facilities, and various power generation systems.

37.7%

Segment Income

265 million yen(Up 71.1% year on year)(Down 60.2% year on year)
FY 2010

2011

2012

FY 2010

2011

2012

FY 2010

2011

Profits declined greatly due to theimpact of reduced revenues anddevelopment costs for newproducts.

2012

FY 2010

Railway station operating equipment

265

Profits increased due toimprovements making plants
more profitable.

1,544

253

(Down 26.2% year on year)

1,133

433

11,542

12,265

1,701 million yen

Segment Income (Unit: Million yen)

666

Sales fell for the same reason asorders received.

Net Sales (Unit: Million yen)

1,701

Net Sales

Orders Received (Unit: Million yen)

2,303

1,544 million yen

Orders decreased in this fiscalyear as a repercussion to increasein orders of ticket issuing handy
terminal for railway companies inJapan for the previous year.

101

433 million yen

Orders Received

1,105

Segment IncomeSegment Income (Unit: Million yen)

164

(Down 5.9% year on year)

11,095

11,542 million yen

As with orders, despite the strong
sales of products such as testing
equipment for automobile
development, sales for production
facilities and overseas sales declined.

11,457

Net Sales

Net Sales (Unit: Million yen)

(Down 43.1% year on year)

12,439(Down 7.9% year on year)

Despite strong orders of infrastructure
related products such as testing
equipment for automobile development
and power generators, there was alarge decrease in orders overseas.

11,98811,457 million yen

5.6%

Results for fiscal 2012
Orders Received (Unit: Million yen)

2,714

Results for fiscal 2012

Orders Received

Percentage oftotal net sales

Our Information Equipment Systems segment helps our customers make theiroperations more efficient by developing and manufacturing advanced “railway station
operating equipment” compatible with IC cards and “remote monitoring systems” thatmonitor status and position and facilitate visualization of power consumption.

2011

2012

FY 2010

2011

2012

FY 2010

2011

2012

Remote monitoring systems
Remote monitoring
system “μ-TOP”

Low inertia motor
Programmable controller (PLC)Intelligent inverter

ED motor
Commuter pass issuing machine

Ticket issuing
handy terminal
Toyo Wireless Measurement System

11

Toyo Denki Seizo Report 201312

Expansion of EVs and HEVs

Research and Development/Intellectual Property

Developing and manufacturing hybrid
construction machinery and electric traction
systems for EVs and HEVs

Committed to technological innovation in thefields of railway and industry

Business Overview

507

2011

2012

Net Sales (Unit: Million yen)Segment Income (Unit: Million yen)

504

507

Orders Received (Unit: Million yen)

FY 2010

FY 2010

2011

2012

FY 2010

2011

-161

-281

-127

320

396

407

We develop and manufacture “automotive electrical equipment” suchas motors and inverters which support electric vehicles (EVs), hybrid
electric vehicles (HEVs), and electrification of construction machinery
as a new core business for the Company alongside our Transportation
Systems and Industrial Systems segments.
Currently, the orders received, net sales, and profits and losses ofthese products are included in our results for the Industrial Systems
segment. As stated in the principal measures of the DASH 2015
Medium-Term Management Plan, this business will drive the expansionof our businesses by establishing a mass production structure for
automotive electrical equipment, firmly capturing demand for a shift tohybrid construction machinery and quickly entering the international
market for electric vehicles.

2012

Research and Development
Our research and development system consists of
the research laboratory and the development
divisions in each business unit. With regard to ourR&D activities, we seek to create products thatfully satisfy our customers in Japan and overseas
and challenge the creation and expansion of theseproducts. We actively develop technologies of ourexisting businesses and core technologies that
support this development as well as new products
Results and topics from fiscal 2012

Segment

Reference: Orders received and net sales
Our automotive electrical equipment business starts with the receipt of orders of thedevelopment and design of prototypes from manufacturers of construction machinery,automobiles, industrial machinery, and other products.
After thorough testing, if the manufacturer decides to take the trial product into
mass production, we begin manufacturing at our industrial motor and inverter
factories in accordance with the mass production plan provided by the customer.
Below are our orders received and net sales for the past three years for reference.

that expand our businesses.
Furthermore, we created a project teamincluding people from our sales, development, anddesign divisions in April 2013. This team hasstudied the theme of “new businesses andproducts” in a cross-company manner and iscommitted to commercializing unique products inthe future.

ProjectFully enclosed induction traction motor

Transportation Information control systems for rolling stock
Systems

IndustrialSystems

Description
Commercialized traction motor that contributes to reduction of maintenance labor.
Completed an information control system for next-generation rolling stock which wasdeveloped jointly with FUJI ELECTRIC.

Compact and lightweight control system

Completed power supply for light rail cars.

Inverter with isolated control unit

Developed a unique inverter with separate control and power units.

Programmable controller (PLC) with increased
functionality

Made PLC with higher reliability by using dual-CPU architecture, and added Internet
communication features.

Expanded line of motors for automotive test
equipment

Developed new models to expand lineup, including ultra-fast motors for EVs andHEVs.

Information Air conditioning instrumentation system (E-SAVE)
Equipment Next-generation all-in-one ticketing machines (railwaySystems station operating equipment)

Developed energy management system for central air-conditioning systems.
Developed a ticketing machine that is more compact, more energy efficient, andissues tickets faster than current models.

Intellectual Property
Inverter

Motor (Image)
Inverter (Image)
Motor

Construction machinery

13O u r i n t e l l e c t u a l p ro p e r t y i s p l a c e d a s a k e y
corporate resource for the present and the future.
Our intellectual property department is responsible
for the management of intellectual property at our
research laboratory and the development divisions
in each business unit actively apply for patents andutility models.
In the overseas markets which we expect tofurther expand our businesses, we will actively
engage in activities concerning our intellectual
property in order to protect our technologies.

Patent applications
Patent applications:
Granted cases:(Applications)

80

260

4640020313166
8450264

4445

59
40
51
360
FY

2008

2009

2010

1JapanJapan

Overseas
Overseas51

450 25 31522213
2011

8802012

Electric vehicle (EV)Toyo Denki Seizo Report 201314