Our Long-Term Vision

Based on a firm management foundation, we help build social and industrial
through the global provision of high-quality products that integrate ourbreakthrough advanced technologies.
Business Principles

Industry
Business
Segment

The Toyo Denki Group will practice the following business principles to ensure thegrowth of its business, earn the confidence and understanding of shareholders andstakeholders, and foster the development of its employees:

ICT Solution
Business
Segment

Prioritize ethics and contribute to the prosperity of customers
and society as a whole
Encourage creativity and enterprising spirit to meetthe challenges of the future
Build trust by focusing on quality first

infrastructure systems that are considerate of the global environment
exceptional motor drive technologies since establishment with ourIndustry Business Segment
The Company is extensively contributing to customers at home and abroad through drive systems
for general industrial machinery and equipment, automobile testing machines and power supply
systems that are indispensable to the daily lives of people. In addition, we address manufacturingthat contributes to the prevention of global warming, while providing products manufactured
through high system-building technologies that make full use of energy-saving motors, inverters, FA
controllers and networks.

Code of Conduct
1. Respond to customers in a timely and speedy manner

Automobile testing machines

2. Tackle all challenges with forethought and creativity
3. Continuous efforts toward self-development and skill improvement
4. Keep a broad perspective and influence each other toward growth
5. Act with awareness and pride of a good member of society andbusinessman

NewBusinessDevelopment

Company Slogan
Transportation
BusinessSegment

Our Heart and Technology for the FuturePower generation andpower supply systems
Production and processing
equipment drive systems

ICT Solution Business Segment
Transportation Business Segment
Electrical equipment for rail vehicles manufactured by theCompany using its technological capability developed since
its founding covers a wide range of fields, including propulsion systems (drive systems), auxiliary power supply andtotal train communication systems, and is designed to enhance the safety and comfort of trains.
In addition, the provision of maintenance services by ourGroup companies contributes to the maintenance and development of railway infrastructure in Japan and overseas.

In the ICT Solution Business segment, we operate in the two fields of railway station operating
equipment systems and IoT solutions, by merging advanced ICT and electronics. With regard torailway station operating equipment systems, we develop and manufacture commuter pass issuingmachines that quickly became IC card compliant and supplementary on-board ticket issuing devices, and provide host systems by leveraging cloud and IoT technologies. In doing so, we supply railway operators with systems for smooth fare collection and income management.
Our IoT solutions enable monitoring and control of mobile entities and remote equipment throughservices that leverage cloud computing and mobile communication, and thus greatly contribute tocustomers’ efforts to streamline operations and optimize equipment maintenance.

Current collectors(pantographs)

IOT solutions

Door operating equipment
Driving gear units

Master controllers
Total train communicationsystem

1

Toyo Denki Seizo Report 2023

Twin disk couplings
Propulsion inverters (VVVF inverter)

Contents/Editorial Policy/Our Long-Term Vision … 1
Over 100-Year History of Toyo Denki Seizo K.K. … 3
Consolidated Financial Highlights ………… 4
Message from the President,Representative Director …………………… 5
Value Creation Process at Toyo Denki Seizo … 9Special Report Medium-Term Management Plan … 11
Message from the Executive Responsible forManagement Planning …………………… 12
Business Report
Transportation Business Segment ……… 13
Industry Business Segment …………… 15
ICT Solution Business Segment ………… 17Development Center …………………… 19
Sustainability
Sustainability Policy …………………… 21
Sustainability Roadmap ………………… 22
Disclosure based on the TCFD
recommendations ……………………… 23
Initiative in Products and Services ……… 25
Initiative in Production Activities ………… 27
Initiative in Valuing People and Communities … 30
With Our Employees ………………… 30To Convey the Missionand Appeal of Toyo Denki …………… 33
Governance
Governance …………………………… 34
Corporate Governance ……………… 34
Directors, Statutory Auditors ………… 36
Messages from Outside Executives…… 37
Internal Control and Compliance ……… 38
Risk Management …………………… 38
Information Security ………………… 42
Financial Report
Financial Review ……………………… 43
Reference Data for Management Indices … 44
Consolidated Balance Sheets …………… 45
Consolidated Statements of Incomeand Consolidated Statements ofComprehensive Income ………………… 47
Consolidated Statements of Changes inNet Assets ……………………………… 48
Consolidated Statements of Cash Flows … 49
TOYO DENKI SEIZO K.K. Notes toConsolidated Financial Statements ……… 50
Information
Stock Related Information ……………… 74
Company Profile ……………………… 75
Organization Chart ……………………… 76

Editorial Policy
We have been publishing this report since 2013
with the goal of allowing a wide range of stakeholders to have a better understanding of the Company.
This report combines our management policy withreports on our businesses, sustainability, governance, finances, and other matters. We are committed to describing our initiatives during the year andour future direction in a manner that is easy to understand.
Period Covered by This Report
This report focuses on our activities in fiscal 2022
(from June 2022 to May 2023), but also contains
some information from outside this period.

Main motors

Passenger information
display system

Railway station operating
equipment systems

C O N T E N T S

Auxiliary power supply (SIV)

Organizations Covered by This Report
This report covers Toyo Denki Seizo K.K. and its
subsidiaries and affiliates listed on Page XX.
Reference Guidelines
The GRI Sustainability Reporting Standards (GRIStandards) / IIRC / Guidance for Value Creation /TCFD / Human Capital Guidelines

Toyo Denki Seizo Report 20232