Transportation Systems Segment

BUSINESS

Support railway transportation that connects people andcities with safety and trust, through manufacturing thatmerges electronics technologies and mechanicaltechnologies in a highly advanced manner

Results for fiscal 2018

BUSINESS

Deliver technologies and gratitude to customers withhighly precise, highly responding and highly efficient
power electronics, for realization of an environmentfriendly society

Percentage of
total net sales

30.0%Results for fiscal 2018
Segment Income (Unit: Million yen)Orders Received (Unit: Million yen)

Net Sales (Unit: Million yen)Segment Income (Unit: Million yen)Segment Income
2017

2018

2019

2017

2018

2019

2017

2018

2019

650 million yen (Up 135.2% year on year)

650

747

12,33911,76912,339 million yen (Up 4.8% year on year)

276

Segment Income

Net Sales

11,073

2,427

2,578

27,235 million yen (Down 2.5% year on year)
2,427million yen (Down 5.9% year on year)

Orders Received

12,833 million yen (Up 13.5% year on year)

3,079

27,235Net Sales (Unit: Million yen)

27,94926,080Net Sales

25,86626,080 million yen (Up 0.8% year on year)

29,366

Orders Received (Unit: Million yen)

28,199Orders Received

12,833

66.1%

Industrial Systems Segment

11,309Percentage of
total net sales

Business Report

12,194

Business Report

201720182019

20172018

2019

2017

2018

2019

Orders received increased 0.8% compared with the previous fiscal year to 26,080 million yen, due to an increase in orders from domestic

Orders received increased 13.5% compared with the previous fiscal year to 12,833 million yen, due to increased orders for testing equip-

private railways and overseas customers excluding those in China, despite a decrease in orders from China caused by the impact of ament and processing equipment. Net sales increased 4.8% year on year to 12,339 million yen for a reason similar to that for the increase

production drop-off period resulting from model replacement of Chinese high-speed railways. Net sales totaled 27,235 million yen, a 2.5%

in orders received. Segment income totalled 650 million yen, a 135.2% increase compared with the previous fiscal year, due to efforts todecrease from the previous fiscal year, due to a decrease in sales in China and other overseas markets. Segment income decreased 5.9%

strengthen cost control and process control and reduce expenses.

compared with the previous fiscal year to 2,427 million yen, due to a decrease in China despite an increase in Japan.

V O I C E

We will expand the Transportation Systems segment with three pillars of “expanding overseasbusiness,” “establishing a stable business earnings structure,” and “restructuring production system.”

Akira Watanabe
General Manager ofTransportation Business Unit

9In the Transportation Systems segment, we will further push ahead with the expansion of overseas business that wehave been working on since the early 2000s, while steadily carrying out the domestic business as a foundation for establishing a stable business earnings structure. At the same time, the production line at the Yokohama Plant will bebolstered as part of efforts to restructure production systems.
Specifically, we will expand the overseas business by reorganizing and strengthening overseas affiliates in accordance with local business environment and by developing a business scheme of providing maintenance for subway
trains whose number is expected to rise sharply particularly in China. Furthermore, we aim to steadily capture demand
for standard rail vehicles that will be newly built for the high-speed railway in China.
In the domestic business, while responding to demand for rail vehicles that will be newly built for the Tokyo
Olympics, we plan to provide products and services that leverage our reliability based on the track record since ourestablishment and new technologies aimed at reducing environmental impact, such as energy-saving, maintenance-saving, and low noise technologies.
Bolstering the production line at the Yokohama Plant involves making good use of the old industrial plant sites thatbecame empty following the consolidation of bases into the Shiga Ryuo Plant and reviewing the internal layout of theplant, with the aim of expanding production capacity and improving production efficiency.

V O I C E

We will grow the Industrial Systems segment along with the Transportation Systems segment as two pillars
by further demonstrating the “Ryuo integration effect” and exploring the domestic and overseas markets.

Yoshifumi Otsubo
General Manager of Industry
Business Unit

With the start of full operation of the Shiga Ryuo Plant in June 2018, the Industrial Systems segment has entered aperiod of dramatic growth. In the first year of operation, orders received, net sales, and profitability significantly increased, as a result of growing customer trust and inquiries, substantially higher productivity, and improved inter-departmental communication. We will further demonstrate the “Ryuo integration effect” and continue to improve ourbusiness performance.
By field, we will enhance added value and expand production capacity for testing equipment for automobile development in Japan by leveraging our strengths in the drive system. As for processing equipment, we aim to capture demand from machine manufacturers, using highly efficient permanent magnet synchronous motors andhigh-performance inverters as our strengths.
Overseas, SIAM TOYO DENKI Co., Ltd. (Thailand), which was set up in June 2019, and Chalco-Toyo Permanent
Magnet Motor Co., Ltd. (China) will lead in developing new markets.
In addition, steady progress has been seen in the development of products, such as super-high-speed rotating dynamo and flat-type dynamo that are compatible with automobile electrification and automatic driving, and large-capacity inverters with a view to expanding overseas.
We will grow the Industrial Systems segment along with the Transportation Systems segment as two pillars throughthese efforts.

Toyo Denki Seizo Report 201910Business Report

Information Equipment Systems Segment

BUSINESS

Provision of products that make the execution of operations
on station premises and trains smooth and convenient andM2M solutions based on mobile phone networks and cloudservers using remote monitoring system

Percentage of
total net sales

3.8%

Business Report

Expansion of New Businesses

BUSINESS

Order received for consigned research and development ofsuperconducting flywheel power storage system for railways
The Company received an order from East Japan Railway Company to conduct operations related to equipment manufacturing and thepreparation of test reports for verification tests of a superconducting flywheel power storage system for railways.
Based on the “Basic Agreement on Technology Development of Superconducting Flywheel Power Storage System for Railways” concluded on March 29, 2018 between Yamanashi Prefecture, the Railway Technical Research Institute, and East Japan Railway Company,

Results for fiscal 2018

this system is being developed for the world’s first practical use in the railway field. The Company will conduct the design and manufacturOrders Received (Unit: Million yen)

Net Sales (Unit: Million yen)2,416

cooperation with MIRAPRO Co., Ltd. (Hokuto, Yamanashi Prefecture; President & CEO: Hiroyuki Tsugane).
Through this business, the Company will work on the construction of a new power storage system that contributes to the improvement

290

314

304

1,388

Superconducting Flywheel Power
Storage System for Railways
The flywheel power storage system is a systemthat, by rotating a large disk (flywheel) within the2017

2018

2019

2017

2018

2019

2017

2018

2019

device, stores regenerative electric power as kinet-When charging
Regenerative electric power of the train
is absorbed, and flywheel accelerates
When discharging
Power is supplied to the train,
and flywheel decelerates

ic energy (charging), and converts kinetic energy

Orders received decreased 27.3% compared with the previous fiscal year to 1,756 million yen, due to a fall-back from the large-scale

The bearing portion of the superconducting fly-the decrease in orders received. Segment income decreased 7.7% compared with the previous fiscal year to 290 million yen due towheel power storage system adopts the supercon-Discharging

11Flywheel
Superconducting
magnetic bearing

Power conversion
equipment

Charging

rayama, Yamanashi Prefecture. The technology al-Strong magnetic
repulsive force realized
by the superconducting
magnetic bearing
allows the flywheel tofloat

lows the flywheel to float, reducing rotational loss

In the Information Equipment Systems segment, apart from delivering on-board IC ticket checking machines to WestJapan Railway Company during the previous fiscal year, we pressed ahead with system development to achieve
multiple determination of the fare calculation system for automatic ticket gates. Furthermore, we won orders forcommuter pass issuing machines and counter processing machines from TOKYU RAILWAYS and Kanto Railway. We
will continue to expand our share in the railway station operating equipment market and provide solutions using remote monitoring systems.
Specifically, as on-board IC ticket checking machines are expected to be employed on rail lines where automatic
ticket gates could not be installed in the past, they will be rolled out to railway operators across the country. Additionally, the commuter pass issuing machine ordered in the previous fiscal year will be our first machine compatible
with IC credit cards, and the counter processing machine will be a new machine that satisfy the needs of small andmedium-sized railway operators. As such, we aim to continue to develop and deliver these products firmly and togain new market share based on the lineup of these products.
In product development, demand for cashless payments is accelerating following the consumption tax ratechange in October 2019. Accordingly, we will work on the development of systems using QR codes.

TimeGenerator motor

Technical Research Institute, and establishedWe will work towards expanding the Information Equipment Systems segment through product development andsolution that meet customer needs, with a focus on railway station operating equipment and remote monitoring systems.

Discharging

Superconducting Flywheel Power Storage System

ductivity technology designed by the Railway
through verification tests conducted in Komeku-

V O I C ECharging

back to electric power (discharging) as necessary.

orders received in the previous fiscal year. Net sales decreased 43.5% year on year to 1,583 million yen for a reason similar to that for
the impact of lower net sales.

Rotational speedof flywheel

Segment Income290 million yen (Down 7.7% year on year)

ing of the power conversion equipment, and will be responsible for the overall coordination of this power storage system’s construction, inof energy efficiency, the stable usage of renewable energy and technology development in the railway field.
1,756

1,583 million yen (Down 43.5% year on year)

1,788

Net Sales

Segment Income (Unit: Million yen)

2,801

1,756 million yen (Down 27.3% year on year)

1,583

Orders Received

as there is no contact, and realizes a reduction inmaintenance efforts.

Overhead wiresWhen braking

When accelerating

When the train decelerates:
Regenerative electric power is generated

When the train accelerates:
Train consumes electric powerAnnouncement of new product IORemoterLTE: IoT terminal for Toyo IoT/M2M solutions/remote monitoring and control systems
The Company has announced IORemoterLTE, a new product that is an IoT terminal for remote monitoring

Toshihiko Akihiro
General Manager of IT Business
Unitand control systems, for Toyo IoT/M2M solutions.
The IORemoterLTE is a high-speed IoT terminal integrated in the LTE module. Through the use of theToyo IoT/M2M solutions cloud service, the remote monitoring and control of various facilities, controllers,devices, and mobile entities can be conducted faster and at a larger capacity.

Toyo Denki Seizo Report 201912Business Report

Research and Development/Intellectual Property

BUSINESS

R&D to support the development of social infrastructureand supporting frameworks
Research and Development
The Group’s R&D activities are based on seeking to create products that fully satisfy our customers and challenging the creation andexpansion of these products, and we actively promote development of technologies of our existing businesses and basic technology
developments that support this development as well as development of new products that expand our businesses.
Results and topics from fiscal 2018
Segment

ProjectDevelopment of a train information
system based on ECN standards

Transportation
Systems
Development of power
storage system

Description

Developed a train information system for Jakarta MRT rail vehicles in compliance with IEC 61375 Part 3-4 ECN
Conducted a driving test for emergency on rheostatic control trains using a power storage system equipped with lithium-ion
batteries. Also analyzed the results of emergency driving, and in case emergency running is necessary, studied a driving approach that suppresses power consumption so that emergency driving can be performed even when the SOC decreases.

Development of flat-type
dynamoDeveloped a frame equipped with a motor for dynamos and a steering function specific for flat-type dynamos thatcan fit inside the wheel well to be used for automobile testing. Since it can fit in the wheel well, we anticipate its application for testing equipment for automated driving.

Development of compact
and lightweight inverter

Developed a compact and lightweight inverter that minimizes installation space and simplifies maintenance such as
replacement. Realized an about 39% reduction in volume and an about 25% reduction in mass compared to conventional products in the 75 kW class by reassessing the cooling structure and the current density for bus bars.

Development of IC-exclusive
commuter pass issuing machine

Developed a compact and desktop IC-exclusive commuter pass issuing machine. Saved space by eliminating themagnetic ticket issuing section and supporting only transportation IC cards.

Function expansion ofExpansion of remote monitoring unit
NewEfforts to reduce the size ofBusinesses eco-drive motors and massproduce themObtained a communication equipment certification in Indonesia to expand sales of the currently available IORemoter.
Also developed an IoT starter kit as a new item to increase sales and highlighted the easiness to get familiar with IoT.

Industrial
Systems

Information
Equipment
Systems

Research
Laboratory

Developed and commercialized a product that uses flat wires for stator windings in order to further reduce the size andweight of eco-drive (ED) motors. Succeeded in increasing current, which was difficult to achieve with conventional
methods, and realized large torque output despite its small size.

Development of low-cost
impregnating resin for
main motors

The bottleneck of the high-heat resistant impregnating resin material used for rail vehicle main motors has
been its high cost due to its special characteristics. Researching a new impregnating resin material to achieveboth high-heat resistance and low cost.

Reduction of motor
manufacturing cost withsquare wire and laser welding

Targeting the reduction of man-hours for the winding process by investigating manufacturing automation of ED motor
stator coils with square wires and laser welding. Also examining the feasibility by optimizing the number of motor
poles and conductor size.

Research on wirelesspower transmission

Researched a wireless and high-efficiency in-motion power transmission system with the goal of eliminating train
overhead wires. Realized continuous traveling of a mini model train with over 95% efficiency, 30 kW power transmission at a stationary state and only with wireless power supply from the ground.

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 our researchlaboratory and the development divisions in each business
unit actively apply for patents and utility models.
In the overseas markets which we expect to further expand our businesses, we have started to actively engage inactivities concerning our intellectual property in order to protect our technologies and brand.

13

Patent applications granted
Patent applications:
Granted cases:(Applications)

80
60

540

220

35
33

62

1030
3002014057
16 0162015

465 2714142016

0Overseas
Overseas664545Japan
Japan

51
33

147

26242017

2018

54236
9937

27

2019