Our Long-Term Vision

Toyo Denki Seizo K.K. Contributes to theDevelopment of Social Infrastructure Systems
Based on a firm management foundation, we help build social infrastructure systems that are considerate of the global
environment through the global provision of high-quality products that integrate our exceptional motor drive technologies
since establishment with our breakthrough advanced technologies.
Toyo Denki Seizo K.K. has contributed with new technologies to the development of railways, industries and social infrastructure in Japan and theworld. Toyo Denki Seizo K.K. was founded in 1918 in an aim to “domestically manufacture electrical equipment for rail vehicles” and has celebrated
the 100th anniversary of its founding in June 2018.
We are developing businesses in transportation, industry and information equipment sectors, and all the three sectors shares a high relevancy to society and the public interest. We contribute to the development of industry and enrichment of people’s lives through our manufacturing expertise byleveraging high technological skills.
We will continue to promote global development and aggressively work to develop advanced technologies befitting the name of “Toyo as a technologycompany,” promote transfer of expertise and skills as well as training of human resources for supporting the development of advanced technologies,
and create new businesses. Furthermore, through ensuring compliance and enhancing governance, we will strive to build a solid presence in theworld as a manufacturer trusted by all stakeholders.

CONTENTS
Contents/Editorial Policy/Long-Term Vision…… 1
Consolidated Financial Highlights………… 2
Message from the President……………… 3
Special Report 1 New Medium-Term
Management Plan………………………… 5
Special Report 2 Shiga Ryuo Plant………… 6
Special Report 3 100th Anniversary ofFoundation……………………………… 7
Business Report
Transportation Systems Segment……… 8Industrial Systems Segment…………… 9Information Equipment Systems Segment…… 10
Business Development………………… 11	Research and Development/Intellectual
Property……………………………… 12
ESG/CSR Report
Environment		Initiatives to Protect the Environment…… 13
Social		 With Our Customers………………… 15		 With Our Suppliers…………………… 16		With Our Shareholders and Investors…… 17		 With Our Local Communities………… 18

1		 With Our Employees………………… 19
Governance		Corporate Governance……………… 21		 Internal Control and Compliance……… 23		Risk Management…………………… 23		Information Security………………… 23		Risk Factors………………………… 24		Data………………………………… 25
Financial Report
Financial Review……………………… 27
Reference Data for Management Indices…… 28
Consolidated Balance Sheets…………… 29	Consolidated Statements of Income
and Consolidated Statements ofComprehensive Income………………… 31	Consolidated Statements ofChanges in Net Assets………………… 32
Consolidated Statements of Cash Flows… 33
Company Profile………………………… 54
Executive Profiles………………………… 55
Organization Chart………………………… 56
Stock Related Information………………… 57

Editorial PolicyWe have been publishing this report since2013 with the goal of allowing a wide range ofstakeholders to have a better understanding ofthe Company. This report combines our management policy with reports on our businesses, CSR and finances. We are committed todescribing our initiatives during the year andour future direction in a manner that is easy tounderstand.
Period Covered by This Report
This report focuses on our activities in fiscal
2017 (from June 2017 to May 2018), but also
contains some information from outside thisperiod.
Organizations Covered by This Report
This report covers the Toyo Denki Group, including Toyo Denki Seizo K.K. and its consolidated subsidiaries.
Reference Guidelines
Global Reporting Initiative (GRI) “Sustainability
Reporting Guidelines Version 4”