Message from the President

While following the basic policy of the medium-term management
plan “Revitalize 2020,” we will add and carry out new measures torespond to changes in the business environment.

Kenzo Terashima

Akira Watanabe

ChairmanPresident

that the Company has been pursuing in recent years, the fully
fledged operation of Chalco-Toyo Permanent Magnet Motor Co.,
Ltd., a joint venture responsible for manufacturing industrial permanent-magnet synchronous motors in China, as well as the expansion of the subway train maintenance business in Beijing, will
be major pillars of that policy.
Based on the decisions of the 159th Ordinary General Meetingof Shareholders and a subsequent meeting of the Board of Directors, Mr. Kenzo Terashima was appointed Chairman, and Mr. Akira
Watanabe was appointed President. Additionally, Mr. Koji Mizumoto assumed the new position of Outside Director with the objective of further strengthening governance.
We hope that our stakeholders will look forward to further development of the Company facilitated by the new management
team and would like to ask for their continued support.

In the Information Equipment Systems segment, orders received were lower than the previous fiscal year without any major
projects in the second half of the year. Both net sales and segment profit increased, boosted by software improvement projects
and other factors associated with the consumption tax hike andrevisions in train timetables in the spring.
Our dividend forecast for the fiscal year ending May 2021 isstill pending. When it becomes possible to disclose our earnings
forecast, we will promptly announce a dividend forecast as well.

Profile of New President
NameAkira WatanabeHometownTokyo

Results for the fiscal year ended May 2020

We would like to express our sincere gratitude to all of our stakeholders for their continued support.
First of all, we offer heartfelt condolences to those who losttheir lives to COVID-19 and deepest sympathies to their families
and the people affected by the loss. We also pray for the quickest
recovery of coronavirus patients.
COVID-19 has caused a major impact on the entire Japaneseindustry, including our customers who are transportation operators and companies in the automobile industry and the equipment
industry. We pray that the COVID-19 epidemic will be contained
as quickly as possible and that economic activity will be revivedagain. The Company will continue its efforts to help to prevent thespread of infections, while prioritizing the safety and health ofemployees through measures such as working from home andstaggered commuting and minimizing hindrance to production.
During the fiscal year ended May 2020, the spread of
COVID-19 resulted in restrictions on sales activities in Japan due
to voluntary refraining from going out and on traveling abroadfrom the latter half of the year. However, the Company did not suffer from any major hindrance to its production activities andachieved a higher profit that exceeded the initial target for the5fiscal year. This was attributable to the integration of production
bases of the Industrial Systems segment to the Shiga Ryuo Plant,
which was carried out on the occasion of the 100th anniversaryof the Company’s founding, productivity improvement in theTransportation Systems segment, as well as new product development in the Information Equipment Systems segment.
Nevertheless, the global economic downturn caused by
COVID-19 has made many customers cautious on capital investment during the fiscal year ending May 2021. Amid this environment, in terms of the Company’s earnings forecast for the fiscal
year ending May 2021, it’s possible to make forecast to a certain
extent for the Transportation Systems segment, which had a relatively large order backlog at the end of the previous fiscal year,
but we think that it will take some time to assess coming developments for the Industrial Systems segment. We will promptly inform you once our earnings forecast can be produced.
Meanwhile, our business policy is to add and implement newmeasures in response to changes in the business environmentthat are becoming apparent these days, while reviewing the medium-term management plan and following the basic policy of theongoing “Revitalize 2020.” In particular, regarding globalization

In the fiscal year ended May 2020, orders received were 38.5 billion yen due to a negative rebound from the previous fiscal year,
when we received large-scale orders in the Industrial Systems
segment, and the stagnation of sales activities caused by thespread of COVID-19. Net sales were 39.0 billion yen, reflecting aYoY decrease in orders received in the Transportation Systems
segment. Operating income reached 1.06 billion yen owing to improved profitability, exceeding one billion yen for the first time inthree years. Ordinary income was 1.2 billion yen due to higher
operating income. Net income attributable to owners of the parent
was 1.08 billion yen as a result of efforts to reduce certain crossholdings. Overseas sales accounted for 20.7% of net sales, mainly due to lower net sales at overseas subsidiaries.
By segment, the Transportation Systems segment saw a YoY
decrease in orders received, dragged down by lower orders in Japan and overseas excluding China. Net sales decreased due to afall in sales in Japan. Segment profit was unchanged from theprevious fiscal year as a result of efforts to step up cost control
and reduce expenses.
In the Industrial Systems segment, orders received were lower
than the previous fiscal year due to a negative rebound from theprevious fiscal year, when we received large-scale orders, and thestagnation of sales activities caused by the spread of COVID-19.
Net sales increased, helped by higher sales for testing equipment
and power supply. Segment profit rose as a result of enhanced
cost control and process control.

Date of birth
November 22, 1959
Education
March 1982: Graduated from Department of Electrical Engineering, Schoolof Engineering, Tohoku University
CareerApril 1982	Joined Toyo Denki Seizo K.K.
August 2013	General Manager, Business Development Division
August 2015	Executive Officer, General Manager, Management Planning
Division
August 2016	Director, Division Director, Transportation Business Unit
June 2018	Executive Director and Executive Officer;
Division Director, Transportation Business Unit; General
Manager, International Sales Division, Transportation
Business Unit
August 2018	Executive Director and Executive Officer;
Division Director, Transportation Business Unit
August 2019	Senior Executive Director and Executive Officer;
Division Director, Transportation Business Unit; Plant
Manager, Yokohama Plant
August 2020	Appointed as President, Representative Director
Memorable assignments• Involved in the development and design of propulsion unit of magnetic
levitation train (high speed surface transport or HSST) systems (late1980s)• Involved in the development and mass production launch of electriccomponents for hybrid construction machinery (early 2010s)
Motto
Be both cautious and optimistic
Hobbies
Listening to and playing music, motorcycle
Toyo Denki Seizo Report 20206