Business Report

Transportation Business Segment
We support railway transportation that connects
people and cities with safety and trust through thetechnologies we have cultivated since our founding
and through our environmentally
Naoki Okuyama
General Manager offriendly manufacturing.
Transportation Business Unit

Main actions
Totally enclosed induction motor with inner fan and grease-lubricated bearings
In addition to our existing model that lubricates bearings with oil, we have developed a model withgrease lubrication.
This product optimizes the trade-offs between product cost and efficiency, noise, andmaintenance requirements in order to enhance the performance of railway vehicles while also
reducing maintenance and improving comfort through noise reduction.

Power storage system for Fukuoka City Transportation Bureau

Business environment and strategy
The easing of the COVID-19 pandemic-related restrictions has beenaccompanied by the return of social and economic activities to normal
levels, including a recovery in capital investment by businesses.
Meanwhile, however, rising raw material prices, longer delivery waits,
and other changes in the post-COVID-19 pandemic businessenvironment have continued to pose daunting challenges. I believethat we need to respond by stepping up our efforts as a corporationand strengthening our actions for addressing the needs of customers.
Looking at the domestic market, the improved businessperformance of railway operators has sparked an upward trend intheir heretofore sluggish demand for new rolling stock production andequipment renewal. However, this bears close watching, as thedemand in some areas is not on par with pre-COVID-19 pandemic
levels.
As for overseas markets, demand has been significantly recoveringin China, and we are working with our affiliates there to respond to
this resurgence. Inquiries are streaming in from other Asian countries
and global regions as well, and our production and sales teams aremaking a coordinated response.
Railway operators are showing a growing interest in initiatives forachieving the SDGs and carbon neutrality. In response, we willproactively offer our railway power storage equipment as a solutionthat can support those efforts.
Main productsElectrical equipment for railway vehicles
Propulsion inverters / auxiliary power supplies / Main motors /driving gear units / pantographs / total train communication systems /passenger information display systems / twin disk couplings / door
operating equipment / high speed circuit breakers, etc.
Railway power storage systems
Door operating equipment for buses

13 Toyo Denki Seizo Report 2023

Results for FYE May 2023
Percentage of total
consolidated net sales

64.0%

Orders Received

20,963 million yen (Up 11.5% year on year)
2021
2022

18,81818,80020,9632023

Net Sales

19,857 million yen (Up 2.1% year on year)
2022

21,52819,4562023

19,857

2021

Segment Income

2,259 million yen (Up 3.2% year on year)
2022

2,211
2,190

2023

2,259

2021

Together with GS Yuasa Corporation, we supplied a power storage system for the Fukuoka
City Subway’s Nanakuma Line, which was extended in March 2023.
The regenerative power generated by train braking is stored in the system’s batteries
and can be discharged to compensate for voltage drops in the overhead lines, such as
when many trains operate during rush hour. This enables effective utilization ofregenerative power.
Moreover, the system can also function as an emergency power source for train
movement. When trains get stopped between stations because a blackout or other issue
has interrupted power transmission in the overhead lines, they can draw power from thesystem to travel to the nearest station.

Vehicle condition monitoring system forrealizing condition-based maintenance
We have begun testing a system for monitoring the condition ofrailway vehicles’ electrical equipment to realize condition-based
maintenance in the future. This project is being carried out with
Keihan Holdings Co., Ltd. and KOTSU DENGYOSHA CO., LTD.
The project is proactively leveraging digital technology inorder to expand the range of equipment that can be monitored.
This will enable maintenance to be performed more efficiently
and thus accommodate the labor shortages that are expected
to occur from population shrinking in the coming years. The
result will be safer and more stable railway vehicles.

Cloud
serverTabletSmartphone

Remote monitoring terminal

Control unit

Energy-saving solutions for existing railway vehicles
We have been commissioned by Keifuku Electric Railroad Co., Ltd. to add a regenerative
braking function to their MOBO 2001 series through modification of the controller and achange of software.
In addition, Kagoshima City Transport Bureau has contracted us to replace the VVVF
inverter controllers of their 2110 series to provide preventive maintenance and improveenergy efficiency as they have been in use for approximately 30 years since the service
began.
Since these projects will reduce power consumption and the use of worn parts while
also extending the replacement cycle, they can help our clients to lower their environmental
impact and thus contribute to achievement of the SDGs.
Toyo Denki Seizo Report 2023

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Business ReportIndustry Business Segment
We use our high-efficiency, high-precision powerelectronics technology to provide customers withenvironmentally friendly social/industrial
infrastructure equipment, contributing toToshihito Nakanishi
Manager of Industry
the realization of a sustainable society. General
Business Unit
Business environment and strategy
We are seeing a stronger influx of inquiries as many industries
vigorously pursue capital investments amid diverse efforts to bring
forth a sustainable society. Although our manufacturing was
impacted by shortages in semiconductor chips and othercomponents in the fiscal year ended May 2023, I believe that oursituation will improve going forward.
In our production and processing equipment business, demandfor equipment renewal is rising along with growing needs forenergy-saving and low-maintenance solutions.
In the automobile testing machines business, we need to respondto the rapid shift toward EVs by adding more battery simulators totesting systems, and develop e-Axles (EV drive units).
In the area of power generation and power supply, expectations
are rising for the contributions to Japan’s energy resilience that canbe made by expansion of emergency power generation systems andrenewable energy-based power generation.
Working in this business environment we will offer solutions thatanswer such expectations and can help realize a sustainable society.
In addition, we will collaborate with the Development Center tobranch out into new fields, such as vehicle testing, where we could
move into testing of advanced driver-assistance systems (ADAS) for
automobiles.

Main products
Automobile testing machines
Various testing devices (durability, vibration, noise, etc.) for
automobile components (engine, transmission, differential gear,etc.) / testing devices for automobiles (efficiency, driverassistance systems, etc.)
Production and processing equipment drive systems
For printing machinery / tire and rubber processing machinery /paper manufacturing machinery / films processing machinery,etc.

15 Toyo Denki Seizo Report 2023

Main actions
Expanding the lineup of production/processing equipment drive systems that help
save energy and reduce maintenance
We leverage our ED (Eco-Drive) Motors that incorporate permanent magnets and our high-precisioncontrollable inverters to supply production and processing equipment drive systems that offer excellent
precision, energy efficiency, and maintainability. Also, we have made it possible to apply ED Motors to abroader range of equipment by conforming them with EU directives and expanding the lineup to include
large-capacity water- and dust-proof models. Moreover, the cooling of ED Motors can be changed from air
to water cooling, which reduces the noise of cooling fans and thus can help improve working
environments.
Going forward, we will further contribute to sustainable manufacturing by providing products that
reduce the energy and maintenance needs of production and processing equipment.

Results for FYE May 2023
Percentage of total
consolidated net sales

31.9%

Responding to the shift toward EVs with our automobile testing machines

Orders Received

10,855 million yen (Up 1.6% year on year)2021

10,5972022

10,6882023

10,855Net Sales

9,905 million yen (Up 0.0% year on year)
2022

10,541
9,902

2023

9,905

2021

Segment Income

479 million yen (Up 0.2% year on year)
718

2021
2022

477

2023

479

Power generation and power supply systems
Emergency generators / continuous-use
generators / generating equipment for
distributed power sources, etc.
Car-mounted electrical equipment
For passenger vehicles /construction machinery
OthersElectrical equipment for lifts /Water supply and sewage equipment systems, etc.

We supply automakers and automotive part manufacturers with automobile testing machines, mainly for testing drive systems. In
response to the shift toward EVs, we offer battery simulators for use in testing machines. Manufacturers are turning to high-capacity,
high-voltage batteries to address EV challenges such as limited range and charging
needs. We have responded by developing and supplying a battery
simulator model whose direct current power source supports highvoltages of up to 1,000 V. This realizes automobile testingmachines that can also be used for e-Axles and other EV drive
components.
We will continue using industry-leading technologies tocontribute to the development of next-generation automobiles.

Proposing vehicle testing devices that use in-wheel-well dynamos
The development of battery-powered EVs and other energy-efficient vehicles is picking up paceamid efforts to achieve carbon neutrality. To support the evaluation of these vehicles, we areproposing an approach to vehicle testing that replaces the traditional chassis dynamometer with
the in-wheel-well dynamo we developed. Since this system directly connects to the hub in thevehicle’s wheel well, it saves space and can be installed in a wider range of locations comparedwith the chassis dynamometer. As a result, it has potential for use in diverse types of vehicle testing, including running mode testing.
Since it enables steering to be done during running tests, it also has potential for application to testing of ADAS and autonomous driving.
We will work with the Development Center to further expand its range of application.

Approaches to power generation systems using renewable energy
We supply a distributed power supply system for small hydroelectric power generation as a
power generation system that uses renewable energy. We are also exploring new ways to utilize
renewable power, including marine energy power generation.
Our distributed power supply system is powered by our standard ED Motor, and this feature isleveraged to support a variety of applications, such as generation and sale of electricity tocommercial power grids, and, with the addition of stand-alone functionality enabling operation during grid outages, service as an
emergency power source.

Toyo Denki Seizo Report 2023

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Business Report

ICT Solution Business Segment

Reorganized from the Information Equipment Systems segment in June 2022

Support the improvement of customers’ operational
efficiency, convenience, and added value and theconstruction and operation of DX-MaaS infrastructurewith ICT solutions that combine
Shingo Furuzawa
General Manager of ICT Solution
advanced ICT and electronics.
Business Unit
Business environment and strategy

Main actions
Railway station operating equipment systems
We combine our deep insights, reliable technologies, and extensive experience in the rail transport sector with advanced ICT to provide
railway station operating equipment systems that improve passenger convenience and reduces the workload of railway operators.
Leveraging cutting-edge cloud computing and IoT technologies to respond to needs ranging from diverse station equipment to hostsystems and applications that run on smartphones already in use, we will continue supplying transport service operators with systems that
help them to build their foundation for DX and MaaS, improve operational efficiency, reduce workloads, and improve customer service.

Results for FYE May 2023

With the lifting of COVID-19 travel restrictions, the number of railway
passengers, including inbound visitors, has been recovering andcapital investment in railway station operating systems is showing
signs of rebounding. As transportation service operators seek toimprove user convenience with MaaS, cashless, ticketless, and othersolutions, we are proactively developing systems that support suchneeds so that we can propose solutions that meet customer
expectations.
Against the backdrop of dramatic advances in technologies suchas cloud computing, communications, data analysis, and AI, as wellas labor shortages and value creation using big data, the IoT market
is starting to expand into new areas. These include countermeasuresagainst the deterioration of infrastructure equipment, particularly inthe manufacturing, public, and transportation sectors, upgrades intransportation infrastructure, and supply chains. We will leverage
cloud services and systems/services utilizing IoT terminals andmobile communication to develop solutions that enable customers tomonitor and control mobile entities and remote equipment so thatthey can improve operational efficiency, optimize maintenance, andcarry out preventive and condition-based maintenance.
We will expand our business range as we strive to provide ourcustomers with solutions that help to add value.

Percentage of total
consolidated net sales

Cloud utilization

Data aggregation

Thin client support

Online booking

Cloud
server

4.1%

Cloudcomputing

IoT

DX

Labor saving

MaaS

Customer
service
improvement

Orders Received

1,421 million yen (Up 49.7% year on year)
Commuter passissuing machines

633

2021

949

2022

1,421

2023

Net Sales

1,256 million yen (Up 59.0% year on year)
1,067

2021

790

2022

1,256

2023

Segment Income

413 million yen (Up 189.6% year on year)
267

2021
2022
2023

IC card issuingmachines

Smart in-train ticket
issuing machines

In-train ticket issuingmachines

Online commuter passservices

In-train ticket issuing system using cashless payment terminals
Previously, our solutions for in-train ticket issuing systems focused on developing dedicated terminals, but now we have developed anin-train ticket issuing system in which an in-train ticket issuing app is used on portable general-purpose cashless payment terminals witha built-in printer function, as well as a sales data aggregation system that uses a
cloud server.
Cloud serverThis use of general-purpose cashless payment terminals lowers costs, making iteasier for customers to adopt the system, and thus helps to create a cashless society.
We will develop business apps tailored to customer needs so that the terminals canalso be used for purposes other than in-train ticket issuing.
In-train ticket issuing machines(payment terminal)
Operations center

142
413

IoT solutions
Main products
Railway station operating equipment systems
Commuter pass vending machines / composite ticket vending machines / in-train
ticket issuing machines / compact vending machines / judgement engines, etc.
IoT solutions(Cloud-based remote monitoring and control systems)

We offer diverse services with systems that utilize IoT terminals,
mobile networks, and cloud servers. In doing so, we provide
solutions that enable customers to monitor and control mobile
entities and remote equipment so that they can improve
operational efficiency, optimize maintenance, and carry out
preventive and condition-based maintenance.

Customer monitoring
centerCloud
serverCustomer
mobile phones

Mobile network

Cloud
serverProduction equipment

17 Toyo Denki Seizo Report 2023

Mobile entities

Agricultural facilities

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Business Report

TOPICS

Development Center
Through collaboration with business units, the Development Center proactively explores and proposes new business areas
and develops new products by employing technologies that contribute to the development of power electronics products,
smart grid-supporting equipment, and autonomous driving systems for vehicles, and by utilizing monitoring systems thatuse sensor technology and information equipment that incorporate communication technology for greater sophistication.

Achievements in development of new businesses and products

VOICE
A first step toward realizing the 2030
energy mix

Remote monitoring system for electrical equipment
for railway vehicles

Located in Fujiyoshida City, Yamanashi Prefecture, theFujino Shizuku Power Plant is a small hydroelectric power generation plant that makes effective use of unusedenergy in the form of water flowing through local agricultural irrigation channels. All the electricity generated issold to an electric power company.
Also, a feature of this Toyo Denki product that contributes to local disaster resilience is that electric power canbe supplied to charge smartphones, EVs, and so on
during power outages.
We will continue to help promote the adoption of renewable energy and thus support the realization of the2030 energy mix.

We supplied Aichi Rapid Transit Co., Ltd. with a system for real-time remotemonitoring of
V V V F i n v e r te requipment.

Smartphone-based in-train ticket issuing machines
We developed an in-train ticket issuing app for Shikoku Railway
Company that operates on iPhones. Going forward, we will create a lineup of in-train ticket issuing machine
products that utilize general-purpose smartphones andtablets, such as Android devices and iPads.

Yusuke Nakanishi
Business Development Division
Development Center

Main actions
On-demand motors (BTO Motors)
Capitalizing on our fundamental technologies in power electronics andmanufacturing, we supply motors and inverters optimally tailored to thecustomer’s needs (on-demand products).
We have provided flat large-torque motors to replace engines inelectrification efforts and compact high-speed motors, but we will now
develop on-demand products such as built-in electricals for motors (akey technology going forward) and motors with built-in inverters.
Example of product deployment

Controller-integrated motor (motor + controller)
InverterBuck-boost circuit

Driver
Motor
Reduction gear

Motor

Converter

Gear-integrated motor(machine + motor)

Motor with built-in inverter(motor + inverter)

Gear and controller integrated motor (e Axel) (machine + motor + controller)

Cloud-linked cashless payment terminal solutions with general-purpose terminals
We will collaborate with the ICT Solution Business Unit to develop diverse cashless payment systems that utilize devices such as generalpurpose portable terminals and are customized for the customer’s needs. We can also create business apps designed for use on thesesystems.
Operations center

Intellectual Property
Our intellectual property is placed as a key corporate resource. Our intellectual property department is responsible
for the management of intellectual property and the development divisions in each business unit and the Development Center actively apply for patents and utility models.

Patent applications granted

Patent applications:
Granted cases:(Applications)

Japan
Japan

Overseas
Overseas

50
40

5

42
36

30
20
10

37

9

2

31

36

27

29 34

2019/52020/50

20

15 16 0 17
3

21

3

3

25

Cloud server

29

15 16

14 18

22 22

2021/52022/52023/5

7

Payment terminals

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Toyo Denki Seizo Report 2023

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