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Toyo Denki Seizo K.K.
Kenzo Terashima, President
1st Section of the Tokyo Stock Exchange
6505
Akira Watanabe
Operating Officer, General Manager
Management Planning Division
TEL.: +81-3-5202-8122

Toyo Denki Seizo Announces Revisions toMedium-Term Management Plan—“Next 100: Beyond 100 years”
Tokyo, Japan, July 12, 2016—Toyo Denki Seizo K.K. (hereinafter Toyo Denki) today announced revisions to themedium-term management plan “Next 100: Beyond 100 years” (covering the period from June 1, 2014 to May
31, 2017) that was previously announced on July 10, 2014 as below, in light of changing business conditions andhurdles that need to be addressed since the previous announcement.
1. Reasons for Revision
The Toyo Denki Group has been advancing measures such as expansion of overseas net sales in theTransportation Systems segment and acquisition of land in Ryuoh Town, Shiga Prefecture for a new factory withthe aim of restructuring production system of two domestic bases, based on the fundamental policy under themedium-term management plan “Next 100: Beyond 100 years” (hereinafter the “Current Plan”).
Meanwhile, starting in the previous fiscal year, the business environment faced an increasingly uncertain outlook.
Companies took even more cautious approach to capital investment due to factors such as a slowdown ineconomic growth in emerging Asian countries and stagnation in the economic recovery in Japan in addition to
shift toward yen appreciation and weak stock prices, although investments in railway infrastructure remainedrobust in Japan and overseas.
Taking these into account, the Toyo Denki Group has decided to revise the Current Plan to the medium-term
management plan “Next 100: Beyond 100 years, Ver. 2,” based on the judgment that it is necessary to establish
key policies and add strategies while maintaining the fundamental policy of the Current Plan, and reset the periodof the plan and forecast for the final fiscal year accordingly.
2. Gist of Revision
The Toyo Denki Group will set “build a stable business earnings structure” and “restructure production system,”
which are part of the fundamental policy, as key policies, and newly add and promote strategies where the bothkey policies are interrelated.
Furthermore, as a major pillar of “restructure production system,” New Shiga Factory is scheduled to start
operations in the first half of 2018, the year of the 100th anniversary of Toyo Denki’s foundation. Aiming tocomplete the related strategies by this time, the Toyo Denki Group will revise the period of the plan.
3. Details after Revision(1) Period of the plan:(Period of Ver. 2:

June 1, 2014 – May 31, 2018
June 1, 2016 – May 31, 2018)1

(2) Fundamental policy
The Toyo Denki Group is committed to drastically improving its corporate value while thoroughly
strengthening its management foundation, in order to become a Group well adapted to the new era in view of2018, the 100th anniversary of its foundation, and beyond.
Aiming to strengthen the management foundation to become a 50 billion yen company under the slogan:“Beyond the 100-Year Mark”(a) Strengthen international competitiveness(b) Build a stable business earnings structure(c) Restructure production system(d) Promote development of technology(e) Establish new businesses(f) Train human resources to support global development(3) Main strategies newly added“Build a stable business earnings structure”- Increase earnings potential by strengthening promotion of productivity reform in Transportation Systemssegment- Stabilize earnings potential by establishing medium- to long-term vision of business structure in Industrial
Systems segment“Restructure production system”- Strengthen production capacity based on productivity reform in Transportation Systems segment- Integrate production system based on vision of business structure in Industrial Systems segment(4) Numerical Management Targets (Consolidated)(a) Corporate(Billions of yen)

<Reference>
Fiscal 2016
Initial forecast

Fiscal 2015

Fiscal 2016
Forecast

Fiscal 2017
Forecast

Net sales

39.7443.0

46.0

50.0

Operating income(%)

1.63(4.1%)

1.9(4.3%)

2.4(5.2%)

3.0(6%)

Ordinary income

1.49

1.8

2.5

3.2

Net income

0.88

1.2

1.7

1.9

Overseas sales
(%)

12.65
(32%)

23.0(50%)25.0(50%)(b) Segment
net sales
Transportation
Systems－－

Fiscal 2015

Fiscal 2016
Forecast

Fiscal 2017
Forecast

26.75

29.0

31.0

31.0

Industrial Systems

12.03

12.5

13.0

16.0

Information
Equipment
Systems

0.95

1.5

2.0

3.02

Fiscal 2016
Initial forecast