Value Creation Process at Toyo Denki Seizo

Core Values and Strengths

Consolidated basis (FY2021)

Output and Outcomes[Group Business Principles]Intellectual capital
Number of patents, etc. held
(Japan and overseas)(Patents, utility models, designs)

Prioritize ethics and contribute to the prosperity of customers andsociety as a whole
Encourage creativity and an enterprising spirit to meet thechallenges of the future
Build trust by focusing on quality first290

R&D spending 710million yen

Planning/
development/design

Human capital

Number of employees 1,193(Men: 1,058; Women: 135)

Social and related capital(non-consolidated)

Number of customers
393companies

Needsandissues
identification

Number of suppliers

668companies

Number of countries supplied

30

Manufacturing capital

After-sales
service[Products and Services][Sustainability]

Transportation Business Segment

Initiative in Products and Services

Electrical equipment for
railway vehicles
Railway power storage
systems
Bus door operating
equipment

Industry Business Segment

Achievements and reliability in
100 years of business
Tireless challenge to improve
technologies
Full commitment to facing ourcustomers squarely
Close networks with suppliers
Development of manufacturingprofessionals

Number of manufacturing sites
Japan 5Procurement

Automobile testing systems
Production and processing
equipment systems
Power generation and social
infrastructure systems
Car-mounted electricalequipment
ICT Solution Business Segment

Production

Railway station operating
equipment systems
IoT solutions

Overseas 5(affiliates)

Energy consumption 2,346kl

Financial capital
Total assets

46.9billion yen

Shareholders’ equity ratio

46.9%[ Fundamental Policies of the Medium-term Management Plan ](FYE May 2023 through FYE May 2026)

1. Expand new businesses and products
2. Thoroughly improve the earnings structures of existing businesses
3. Improve asset efficiency with an awareness of capital costs
Revitalization and transformation of Toyo Denki

External Environment
Changes in demographics
Living with COVID-19 now the norm

9

Initiative in Production Activitie

Reduction of environmental
footprint through energy saving,
decarbonization, andimprovement of recycling rates
Initiative in Valuing People and Communities

Realizing the happiness ofemployees and their families
Development and production ofgood members of society andcorporate citizens
Contribution to local communities

Sales

Annual capital spending
310million yen
Natural capitalDevelopment of the world’s
railway infrastructure
Development of manufacturing
and infrastructure around the world
Creation of new services throughadvanced telecommunication
technologies

Increase in geopolitical risks
Rising costs of resources and energy

Expand out into the whole world,
including the Chinese and Asianmarkets and the United States, as a
global brand
Human rights considerations, human capital management
Carbon-free business management, arrival of theclosed-loop economy
Acceleration of technical innovations

Our Heart andTechnology for theFuture
Toyo Denki Seizo’s goal

Long-termVisionHelp build social and industrial infrastructure that is considerate of theglobal environment, with a focus on exceptional motor drive technologies

Input (corporate resource)

Toyo Denki Seizo Report 202210