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Special Report

Initiatives for ESG and SDGs

Plant Opening Ceremony of Chalco-Toyo Permanent
Magnet Motor Co., Ltd.

Connect to the Future– What we can do for people, the environment and society“Transportation Systems” to support the safety of railway infrastructure with electrical equipment such as pantographs and driving gear units.
“Industrial Systems” to help people’s lives and energy saving with automotive development, processing equipment, and electrical products for
power generation infrastructure.
“Information Equipment Systems” to watch the work comfortably in the network such as terminals for stations and conductors, monitoring
control of remote facilities, etc.
In our three businesses, we are manufacturing things that help the environment and society (ESG).
We will contribute to the realization of a sustainable society by further leveraging our accumulated technology and experience.

Environment

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Environmental stewardship activities(Environmental Philosophy and Action Guidelines)
Implementation of environmental management	Social

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Initiatives for stakeholders
Creating a pleasant workplace

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Special Report

Governance

Page 21

Corporate governanceThe business activities of Toyo Denki Seizo are closely related to the environment and social infrastructure. By offering products and systems combining“environmental technology” and “IT technology,” we contribute to infrastructuredevelopment and sustainable development of a safe and secure society. We areendeavoring to proliferate energy-saving products toward the following specificgoals of SDGs:
7 Affordable and Clean Energy
13 Climate Action

In June 2019, the Company established Chalco-Toyo Permanent Magnet Motor Co., Ltd., a joint venture company that primarily engages in the manufacture and sales of industrial permanent-magnet synchronous motors inChangshu, Jiangsu Province in the People’s Republic of China (hereinafterChina). Preparations for the plant’s operation had been underway and werecompleted recently, with an opening ceremony held on September 10, 2020.
The opening ceremony was a grand affair and attended by the joint venture
partner companies, senior officials of the Changshu government, businesspartners, local media, and many other guests.
We will continue to capitalize on our outstanding motor drive technology
and globally expand our business in order to contribute to the realization ofsocial infrastructure systems that are friendly to the global environment.

Plant opening ceremony

Internal view of the plant

Examples of initiatives

Internal awareness-raising activities

Energy saving of railways

We conduct awareness raising activities
such as in-house newsletters to raiseawareness and knowledge of SDGs andto encourage employees to think themselves about efforts to achieve SDGs
through business.

We have been supplying various electrical equipment for vehicles to railways around theworld to support their development. Examples of our products accepted by customers inrecent years include the supply of VVVF inverters using SiC elements and high-efficiency
totally-enclosed motors for Keisei Electric Railway’s new 3100
series rolling stock. Energy consumption was reduced by about
18% compared to the conventional system, achieving energysavings.

Energy saving with eco-drive (ED) motors and intelligent inverters
The Company’s permanent-magnet synchronous
motors, “eco-drive (ED) motors,” and intelligent
inverters are widely used for production andprocessing facility systems in Japan and overseas,
facilitating energy-saving.

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Background to the establishment of Chalco-Toyo Permanent Magnet Motor Co., Ltd.
Chalco-Toyo Permanent Magnet Motor Co., Ltd. was established as a joint investment between Chinalco Rare Earth & Metals Co., Ltd., asupplier of rare earth metal resources affiliated with Aluminum Corporation of China (CHINALCO), a trading company Beijing Ling Yang
Trading Co., Ltd., and the Company. The purpose of the joint venture is to manufacture highly efficient permanent-magnet synchronous
motors for production and processing facilities as the Company’s first overseas manufacturing base for the Industrial Systems segment,and to capture energy-saving needs in the Chinese and ASEAN markets.

Jingche Shuangyang
Toyo Denki (Beijing)

Overview of the plant
Beijing

North Korea
Japan
South Korea

People’s Republic of China

Chalco-Toyo (Changshu)
ChengduYonggui Toyo

Changzhou Ruiyang
Yangdian Zhanyun
Changsha

Xiangyang Electric

Block G, Jiadi (Changshu) International Industrial Park,
No.1150 Southeast Avenue, Changshu Hi-tech Industrial
Development Zone, Changshu City, Jiangsu Province

Site area

approx. 20,000 m2Tokyo
Osaka

NagoyaChangzhou
Shanghai

Location

Subsidiaries and affiliates for Transportation Systems
Subsidiaries and affiliates for Industrial Systems
Subsidiaries and affiliates for all segmentsEmployees 42 people
Products

Industrial permanent-magnet synchronous
motorsApplications

Factory lines, processing equipment, printing
machines, compressors, pumps, etc.

Production
Target production of 5,000 units in fiscal 2021
capacity

Toyo Denki Seizo Report 20208