To p I n t e r v i e w

Turning to operating results over the past half year, we are
yet to see any meaningful recovery or bottoming out of thesteady decline in net sales. Conditions surrounding the Industrial
Systems segment are characterized by a general unwillingness
to invest in industry. Nevertheless, results in the Transportation
Systems segment remain robust with sales slightly in excess ofplans. Taking into consideration the recent upswing in orders aswell as the carry forward of certain projects into the next period
resulting in the postponement of sales, we see little need torevise full fiscal year forecasts.

QAn Interview with the President
Under the leadership of new management, the Toyo Denki Group commenced its new three-year mediumterm management plan, the “Challenge Up Plan,” from fiscal 2009, the fiscal year ending May 31, 2010.
With this Plan as its base, the Group is making steady progress toward consolidating its business platform
to take a significant leap forward as it enters a period of further growth. In the following pages, Hiroshi
Tsuchida, President of Toyo Denki Seizo K.K., provides details of the Group’s current status and outlook
together with his thoughts to employees and shareholders.

Hiroshi Tsuchida

Q1

President

Looking back over the period since yourappointment as president, please reiterate
your thoughts toward and aspirations for theCompany, as well as anything that stands out
from a management perspective?

Six months have now passed since I was newly appointed aspresident of Toyo Denki in August 2009. Prior to this, I wasinvolved for a long time in the rail and related industries,
including management of a West Japan Railway affiliatedcompany. As a result, I was very familiar with Toyo Denki, its
advanced technological expertise, and long history as amanufacturer of motors and pantographs.
Over the past half year, I spent a great deal of time calling on
customers both in Japan and China. This has given me a firsthand appreciation of the high esteem in which the Company’s
technological capabilities and after-care services are held byrailway operators. Walking through the Company’s manufacturing
facilities, I have also been greatly impressed by the dedicatedmanner in which each and every employee carries out his or herduties. I can fully appreciate that Toyo Denki’s manufacturing
techniques are being used to maximum advantage.

Clearly the Company’s ongoing development can beattributed to three core factors. The first is Toyo Denki’s frontier
spirit. This spirit underpins the Company’s unwavering efforts touncover new technologies ahead of competitors, rather thanrelying solely on efforts to hone existing capabilities. The second
factor is Toyo Denki’s ability to get things done, bringing tofruition innovative ideas and concepts. Finally, the Company’s
dedicated approach toward thorough after-care service is thethird factor that rounds out Toyo Denki’s positive growth.
Inheriting this corporate culture that has supported the Companyfor more than 90 years, my goals are to increase earnings whilefurther enhancing Toyo Denki’s profile and presence.
Looking at the Company’s workplace environment,
employees are earnestly carrying out their duties with a strong
sense of urgency. This is extremely pleasing. I would, however,like to add another feature to Toyo Denki’s corporate style, andthat is a greater sense of energy and vitality. It is important tobuild a dynamic atmosphere, to create a vibrant buzz andpromote enjoyment. In this manner, the passion that comesfrom within each and every employee will serve to drive theCompany forward toward increased growth. In the future, I will
be looking for this type of evolution and change.

What direction will Toyo Denki take as it strives
to secure future growth? And, what are theCompany’s prospects and plans for businessdevelopment?

This goes back to the pioneering spirit that I mentioned earlier,and the Company’s commitment to consistently take up newchallenges. Following on the heels of Toyo Denki’s mainstay
Transportation Systems and Industrial Systems businesses, wewill focus on new businesses in next-generation fields including
Information Systems, which encompass remote monitoring andthe Toyo Wireless Measurement systems, as well as electricvehicle (EV) systems. Harnessing the strengths of our inherent
technological capabilities, these initiatives will fulfill our insatiable
need to broaden the scope of our business activities. Throughthese means, Toyo Denki will build a solid platform from which it
will secure future corporate growth.
Speed is vital when developing the technologies required toadvance ahead in the fields of information technology,
environmental protection and energy conservation. In addition,
today’s demands extend well beyond stand-alone technologies.
Market requirements call for the provision of total-package
systems and the ability to adjust to wide-ranging needs. In thisregard, Toyo Denki has abandoned its previous approach ofcompleting tasks on its own. We will proactively seek out
collaboration with business partners outside our industry as wego about implementing business initiatives.
From the perspective of increasing the scope and scale ofearnings, efforts to bolster overseas business development areintegral to the Company going forward. One component of ourendeavors in this area is the business alliance with Fuji ElectricSystems, executed in July 2009. This alliance encompasses thesupply of electrical equipment and components for rail vehicles tooverseas markets.
Currently, a succession of large-scale railway-related projects
are proceeding in such countries as China, the United States,
Brazil and India. Toyo Denki has secured major orders for theBeijing subway network up to the second quarter of the current
fiscal year, which indicates the importance of China to theCompany as a key business target. Buoyed by the swift anddecisive actions of China’s political leaders, massive amounts ofinvestment funds are being channeled into national projects.
China is accordingly enjoying robust rates of economic growthcommensurate with the nation’s sense of unity and solidarity.
Recognizing the momentum generated by neighboring countries
as a business opportunity, we will continue to reinforce ourmarketing efforts and initiatives.
These basic policies of fortifying our efforts toward overseas
expansion as well as generating new businesses are key
components of the Toyo Denki Group’s three-year medium-term
management plan. While the Challenge Up Plan was formulated
prior to my appointment as president, I am committed to taking
over and achieving the Plan’s established goals. Having said this,and acknowledging that targets are not beyond our reach, specificdetails of individual objectives are indeed bold. In the initial fiscal
year of the Plan, I will be looking to achieve the identified first-year
goals. Thereafter, I would hope that we can attain wherever possible
the numerical targets in advance of established schedules.

Q

Do you have any comments you would like tomake to shareholders?

Operating conditions are projected to remain harsh for theforeseeable future. Undeterred, Toyo Denki will aggressively
pursue business development with the aims of securing
earnings growth while further enhancing corporate value. In
appreciation of the support provided to the Company by its
shareholders, we plan to maintain existing returns through theconsistent payment of cash dividends. Looking ahead, we will
make every effort to improve the Group’s performance in order
to increase the amount of cash dividends paid.
The success or failure of the Group’s endeavors will bereflected in and evaluated by its numerical results. In themeantime, Toyo Denki will continue to disclose information
relevant to its business operations and conduct throughappropriate and timely IR activities. In addition, we will direct theattention of shareholders and investors toward newspapers andother media, which often report on the Group’s activities andparticularly its transportation and EV system businesses. As theToyo Denki Group works toward achieving its established goals,
focusing largely on such areas as overseas businessdevelopment and new business incubation, we hope thatshareholders will holdhigh expectations of
the Group’s potential
while watchingclosely over its
business activities.
I would like totake this opportunity
to express myprofoundappreciation for theunderstanding ofshareholders and ask
Located within the Yokohama Works, thefor their ongoing, long- Engineering Center was completed in January 2010.
term support.

2

Special
FeatureActivities Geared toward Information Systems Segment Growth3

Raisingtransportationand handling
quality throughtemperature anddelivery
management

Toyo Denki’s Internet-Compatible Remote Monitoring System — GENES REMOTE — Is
an Easy-to-Use System That Makes Data More Visible

Remote Monitoring Systems Represent a New
Business Pillar for the Information Systems Segment
Toyo Denki’s Information Systems segment is comprised ofbusiness operations that handle railway station operationequipment as well as the Toyo Wireless Measurement System.
Fueled by an upswing in energy efficiency and needs toreduce costs and labor expenses, the market scale of remotemonitoring systems is expected to expand. Drawing on theCompany’s substantial reserves of highly sophisticatedcommunication and control technologies, this special feature
introduces Toyo Denki’s remote monitoring systems that areused extensively across wide-ranging situations.

EnergySaving

CL O SE U P▲▲▲

Information
SystemsSegment— A Remote Monitoring
System Applicable in Wide-Ranging Situations

Special Feature

Realizingenergy saving by
visually
displaying andmonitoring
power usage
and flow

Batteryless and wireless measurement system tovisually display power usage and flow

Toyo Wireless Measurement SystemThe Toyo Wireless Measurement System facilitates simpleand easy data collection at plants, office buildings and awide spectrum of facilities. By receiving data from thethree types of sensors—current, power and analog—
through a wireless communication unit, the systemminimizes the amount of electrical work required, thereby
substantially reducing installation costs.

Enhancingsecurity throughthe remote controlof key locking
and unlocking

Easy electricity
measurement
at agingbuildings

Features

Batteryless
Wireless
Easy installation
Collected data canbe stored in apersonal computer

Reducing costs
through the use ofefficient dispatchsystems

System configurationPlantsLabor
Efficiency

CostReduction

Remote monitor terminal “μTOP”(pronounced “micro-top”)

Examples of Toyo Denki’s Remote
Monitoring System in Use•••Using Toyo Denki’s Remote Monitoring System, remotemonitoring can be undertaken anytime and anywhere througha personal computer or mobile phone connected to theInternet. A dedicated server is not required. Users need only
provide a personal computer with Internet access. The system
requires a low initial cost and can be flexibly customized asrequired. Toyo Denki’s Remote Monitoring System can beused effectively in the situations indicated at right.

Current sensor

Monitoring power usage
and flow

Securing commodity distribution
quality• M onitoring of the usage and flow ofpower at plants, office buildings, andcommercial, retail and other facilities• Internal temperature monitoring of delivery
trucks and warehouses• Management

and control of warehoused stock• Facilitation of delivery management toensure items reach planned destinations

Management and control ofremote facilities andequipment• Temperature monitoring and control ofgreenhouses and other such
agricultural facilities• Monitoring of simple waterworksfacilities such as pumps in mountainareas• Monitoring of enrichment devices athot springs• Monitoring of water heaters inbuildings

A sensor installation example

Safe and secure transportationand handling

Efficient vehicle dispatch system• Efficient support in the dispatch of vehicles
combining information on taxi location andavailability

Commercial
facilities

System configuration

Monitoring
scope

Customer’s
mobilephone

Production
facilities

Internet• Facilitation of remote control of delivery
vehicle key locking and unlocking duringtransportation and handling of valuable items

Datacenter
CustomermonitoringcenterWirelesscommunication
throughdesignated lowpower basestations

Mobilephone
network

Transportation

Agricultural
facilities

Retailstores

Public facilities(school,hospital, etc.)

Power sensor
Receiver unit

Analog sensor(for temperature,humidity, etc.)

PCs
Principal applications:• Identify and measureequipment energy volumes• Use as a portablemeasurement tool• Enhance efficiency of
cyclical inspections

The system has also been installed at the Company’s
Engineering Center, a research, development and design
facility completed in January 2010. Electricity monitoring
demonstrations are being conducted at the Center.

4