Business Report

Business Report

Transportation Systems Segment

Business of the Toyo Denki GroupThe Toyo Denki Group operates three businesses, namely, Transportation Business segment, Industry Business segment,and ICT Solution Business segment. We also conduct new business development in our Development Center.
In the Transportation Business segment, we are a leader in electrical equipment for railway vehicles. The Industry
Business segment is centered on industrial electrical equipment such as motors and inverters for production equipment
and machinery. The ICT Solution Business segment develops and manufactures railway station operating equipment andIoT solutions. The Development Center pursues initiatives for the expansion of new businesses and products.
The Group is contributing to the prevention of global warming and the realization of a recycling-based society throughthe manufacture of highly energy-efficient products.

Transportation Business Segment
Main products

Fiscal 2021
Percentage of total consolidated
net sales

30,15864.5%

19,456 million yen

Electrical equipment for railway vehicles
Propulsion inverters / auxiliary power supplies / traction 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
Bus door operating equipment

Support railway transportation that connects
people and cities with safety and trust, throughmanufacturing that merges electronics
technologies and mechanical technologies in ahighly advanced manner
Naoki Okuyama

General Manager of Transportation Business Unit

Business environment and strategy
While some recovery of economic activity can be seen with the easing of restrictions on activities as part of infection countermeasures,
there continue to be price rises of raw materials and supply shortages of semiconductor chips. Even further corporate efforts and activities to support the railway operators have become necessary.
In the domestic market, with the recovery in railway passenger

million yen

transport, there is a certain level of demand for rolling stock produc-*Net sales of 30,158 million yen
includes 9 million yen in otherbusiness revenue.

tion and equipment renewal, and receipt of orders remains firm. The
production and sales divisions are working together to avoid the impact of our most pressing issue of the protraction of delivery timesfor parts and materials.
In overseas markets, recovery of demand can be seen in China,
but we are keeping a close watch on the impact of the resurgence ofinfections after the easing of COVID-19 infection countermeasures.

Industry Business Segment
Main products

32.8%

9,902 million yen

Automobile testing systems
Various testing devices (durability, vibration, noise, etc.) for automobile
components (engine, transmission, differential gear, etc.) / testing
devices for automobiles (efficiency, driver-assistance systems, etc.)
Production and processing equipment systems
For printing machinery/ tire and rubber processing machinery /paper manufacturing machinery / films processing machinery, etc.
Power generation and social infrastructure systems
Emergency generators / continuous-use generators /generating equipment for distributed powersources / water supply and sewage equipment
systems, etc.
Car-mounted electrical equipment
For passenger vehicles / construction machinery
OthersElectrical equipment for lifts, etc.

13

ICT Solution Business Segment
Reorganized from the Information Equipment Systems
segment in June 2022

Main products

2.6%

790 million yen

Railway station operating equipment systems
Commuter pass vending machines / composite ticket vending
machines / mobile devices for conductors / compact vending
machines / judgement engines, etc.
IoT solutions(Cloud-based remote monitoring and control systems)

We continue to receive inquiries from Southeast Asian countries andthe North American region, and the sales, engineering, and production divisions are working together to respond to them.
We support initiatives by the railway operators to achieve theSDGs and carbon neutrality. Specifically, we will strive to roll out theE3 Solution System, our railway power storage equipment that will

Results for FYE May 2022
Orders Received

18,800 million yen (Down 0.1% year on year)
25,7122020
2021

18,8182022

18,800Net Sales

19,456 million yen (Down 9.6% year on year)
24,269

2020
2021
2022

21,52819,456

Segment Income

2,190 million yen (Down 1.0% year on year)
2,474

2020
2021

2,211

2022

2,190

realize energy saving and stable transport through the effective useof electric power.

Main actions
In addition to our ongoing pursuit of safety and reliability of electrical equipment for railway vehicles, which operate in harsh conditions, we will devote
efforts to reducing our environmental footprint, including energy saving, maintenance saving, and noise reduction, and work to provide environmentallyfriendly products and services.
In the promotion of digital transformation (DX) in product maintenance, we have started providing remote monitoring systems for condition-based
maintenance (CBM), which predicts product age-related deterioration and breakdown timing by monitoring conditions using AI and data science. We
are also placing efforts into smart maintenance that aims for efficiency improvement and preventive maintenance with appropriate inspection cycles.
We have launched maintenance businesses for delivered products in both North America and China. By steadily capturing the growing demand formaintenance and servicing, we will strive for the expansion of our business and the stable provision of services.

Toyo Denki Seizo Report 2022

14Business Report

Business ReportIndustrial Systems Segment

ICT Solution Business Segment
Reorganized from the Information Equipment Systems segment in June 2022

Deliver technologies and gratitude tocustomers with highly precise, highlyresponding and highly efficient powerelectronics, for realization of an environmentfriendly society
Business environment and strategy
With the recovery in the economy after the COVID-19 pandemic,
capital investment in the manufacturing industry is on a path torecovery. In fiscal 2021, although there was still visible impact ofrestrictions on sales activities, such as overseas travel restrictions andvoluntary restraint from meetings with customers, those restrictions areeasing, and we can expect new demand for capital investment. On theother hand, the effects of rising prices of raw materials and shortagesof semiconductor chips and other components continue to be felt, andthe production and sales divisions are keeping each other closely
informed to handle this situation.
In the area of automobile testing systems, with the rapid shift
toward electric vehicles, some automakers and parts
manufacturers are considering revising the content of theirconventional testing systems. Our unit is proceeding with proposals
in response to these kinds of revisions.
Further, amid the trend toward carbon neutrality, expectations
for power generation using natural energy are on the rise, and weare making proposals to meet those expectations.
Amid such changes in the environment, we will work together
with the new Development Center that was established in June
2022 to actively engage in new areas with the prospect ofcontributing to sustainability.

Toshihito Nakanishi
General Manager of Industry Business Unit

Results for FYE May 2022

Business environment and strategy

Orders Received

10,688 million yen (Up 0.9% year on year)
11,1982020
2021

10,5972022

10,688Net Sales

9,902 million yen (Down 6.1% year on year)
13,023

2020

10,541

2021

9,902

2022

Segment Income477 million yen (Down 33.4% year on year)

Although railway passenger numbers in Japan are not expected toreturn to pre-pandemic levels, they are gradually recovering as
people learn to live with COVID-19, and capital investment related
to railway station operating systems is starting to recover.
In particular, the market is expected to expand for systems that
contribute to improved rail passenger services and for MaaSrelated services
Against the backdrop of dramatic advances in technologies suchas cloud computing, communications, data analysis, and AI, as well
as working population shortages and value creation using big data,
the IoT market is starting to expand into new areas. These include
countermeasures against the deterioration of infrastructure
equipment, particularly in the manufacturing, public, andtransportation sectors, upgrades in transportation infrastructure,and supply chains.
The ICT Solution Business segment, which was reorganized inJune 2022, will work toward the active expansion of businessfields in these areas.

Orders Received

949 million yen (Up 49.8% year on year)
1,611

2020

633

2021

949

2022

Net Sales

790 million yen (Down 26.0% year on year)
1,772

2020

1,067

2021

790

2022Segment Income142 million yen (Down 46.5% year on year)
460

2020

718

2021

Shingo Furuzawa
General Manager of ICT Solution Business Unit

Results for FYE May 2022

1,008

2020

2022

Support the improvement of customers’
operational efficiency, convenience, and added
value and the construction and operation ofDX-MaaS infrastructure with ICT solutions thatcombine advanced ICT and electronics.

267

2021

477

2022

142

Main actions

Main actions

We will expand into areas where we can contribute to sustainability, such as decarbonization.

The ICT Solution Business segment is a segment that integrates railway station operating systems and IoT solutions.

In the area of automobile testing systems, to respond to the shift toward electric vehicles, in addition to working on increasing the output of battery

In railway station operating systems, the combination of advanced ICT and mechatronics will simultaneously achieve improved convenience forsimulators, we made our first delivery to a customer of the in-wheel-well dynamo that we had been developing. With representatives of the automakers

railway patrons and labor saving for railway operators. We will develop platforms, devices, and applications for the MaaS era with the keywords of

who attended trade exhibitions and factory tours expressing an interest in this product as a tool for various testing of automobiles, we will makecontact-free, cashless, and thin client, and provide a seamless mobility environment.

modifications in line with their feedback and aim for its use in the testing of driver-assistance systems.
Overseas, our Thai subsidiary, SIAM TOYO DENKI, which was established in 2019, is achieving results in the expansion of its customer base. Pandemic
restrictions are easing, and we are proceeding with the commercialization of the 690V motor and inverter for overseas markets, with the aim of rolling them out in
the Asian region. In Japan as well, we will respond to the increase in inquiries for our products accompanying the recovery in capital investments in energy saving

In IoT solutions, we will provide solutions that monitor and control mobile entities and remote equipment to realize operational efficiency
improvements, maintenance optimization, preventive maintenance, and condition-based maintenance (CBM) with cloud services and systems services
for mobile communications.
We will strive to expand the ICT Solution Business segment by providing our customers with solutions that generate added value.

and other areas by stepping up our efforts toward small hydropower generation and wave power generation, in which the Company has a strength.

15Toyo Denki Seizo Report 2022

16

Business Report

TOPICS

New Business Development/Intellectual Property
Development of new business fields across the entire company
The new Development Center established in June 2022 is playing a central role in our efforts to strengthen and expedite
development of new business fields across the entire company.

Industry Business×

ICT Solution Business×

Development CenterPower generation systems using recyclable energy
Amid the trend toward the realization of carbon neutrality worldwide, we will provide environmentally friendly distributed power generation systems(power generation + power conditioner panel) using natural energy generated by hydropower, wind power, ocean energy power, and such.

Transportation Business×

ICT Solution Business×

Development Center

Real-time condition monitoring system for railways
We built and delivered a system that can monitor railway
operational condition and behavior in real time over the public
cloud by retrofitting our IORemoter to the railway vehicle’s VVVF
device. This system has realized the conversion of the equipment
installed in railway vehicles to an IoT device with simple retrofitting.
Through assistance with energy consumption reductions
achieved by data collection and analysis for the improvement ofmaintenance performance in the railway sector, we will work torealize energy- and maintenance-saving railway systems.

Industry Business×Development Center

Development and mass production of custom-made motors
Capitalizing on the power electronics technologies and production technologies wehave cultivated for railway vehicles and general industry, we are pursuing theexclusive development of electric motors and invertors for mobile entities, optimalWith our extensive track record of over 100 deliveries, we are able toprovide electrical equipment suites that include power transforming
equipment to meet new needs. Such needs include power supply for selfsustained operation during loss of grid power, such as in emergencies, andoutput control response to meet grid-side requirements, with optional
demand monitoring and control solutions.

Industry Business×Development Center

Evaluation equipment compatible with advanced driver-assistance systems (ADAS)
Using the in-wheel-well dynamo that we developed in 2020, we are pursuingfurther development with the aim of providing next-generation vehicle testing
devices that are suitable for testing autonomous driving and advanced driverassistance systems.
Through the ongoing development of new functions that incorporate thewishes of users to whom we have already delivered our products and people
who have shown an interest at trade exhibitions and other events and that also
reflect future market trends, we will support the development of automobiles
and help to realize a decarbonized and sustainable society.

design of built-in electricals for motors, pumps, and production machinery, and otherdevelopments as motors tailored to customer needs.
By handling everything from customized prototyping to small-lot mass production for downsizing, weight reduction, inverter-converter control,
environment resistance, efficiency optimization, and advanced functions, we will realize the development of products with higher added value.

ICT Solution Business×

Transportation Business×

Development Center

Cashless payment terminal solutions
We will provide terminals that offer a wide variety of payment methods, including
touch payment, code payment, and e-money. Because these terminals have an inbuilt
printer and are portable, they can be used in any location and for any situation.
These terminals can be used for various applications other than as conventional
supplementary on-board ticket issuing devices, and we can provide logistical systems
using cloud services. We will also build commercial applications in line with customers’ preferences.

17

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 andthe Development Center actively apply forpatents and utility models.

Patent applications granted
Patent applications:
Granted cases:

JapanJapan

Overseas
Overseas(Applications)

60

51
4

42

40

5

33
20

9 2

947

36

36

37
2427

2018/5

2019/531

29

342015 160 3

17

21

15 16

14 18

2021/52022/530
2020/5

Toyo Denki Seizo Report 202218