Our Long-Term Vision

Based on a firm management foundation, we help build social and industrial
through the global provision of high-quality products that integrate ourbreakthrough advanced technologies.
Business Principles

Industrial
Systems
Segment

The Toyo Denki Group will practice the following business principles to ensure thegrowth of its business, earn the confidence and understanding of shareholders andstakeholders, and foster the development of its employees:

ICT Solution
Business
Segment

Prioritize ethics and contribute to the prosperity of customers
and society as a whole
Encourage creativity and enterprising spirit to meetthe challenges of the future
Build trust by focusing on quality first

infrastructure systems that are considerate of the global environment
exceptional motor drive technologies since establishment with ourIndustrial Systems Segment
The Company is extensively contributing to customers at home and abroad through general industrial
machinery and equipment, testing equipment for automobile development and social infrastructure
equipment that is indispensable to the daily lives of people. In addition, we address manufacturing that
contributes to the prevention of global warming, while providing products manufactured through highsystem-building technologies that make full use of energy-saving motors, inverters, FA controllers andnetworks.

Code of Conduct
1. Respond to customers in a timely and speedy manner

Automobile testing systems

2. Tackle all challenges with forethought and creativity
3. Continuous efforts toward self-development and skill improvement
4. Keep a broad perspective and influence each other toward growth
5. Act with awareness and pride of a good member of society andbusinessman

NewBusinessDevelopment

Company Slogan
Transportation
SystemsSegment

Our Heart and Technology for the FuturePower generation andsocial infrastructure system
Production and processing
equipment systems

Transportation Systems Segment

ICT Solution Business Segment

Electrical equipment for rail vehicles manufactured by theCompany using its technological capability developed over 100years covers a wide range of fields, including propulsion systems (drive systems), auxiliary power supply and door-closing
units of trains, and we contribute to the maintenance and development of railway infrastructure overseas, not to mention inJapan, by pursuing safety and comfort of trains.

In the ICT Solution Business segment, we operate in the two fields of railway station operating equipment
systems and IoT solutions, by merging advanced telecommunications technologies and mechatronics.
With regard to railway station operating equipment systems, we develop and manufacture commuter
pass issuing machines that quickly became IC card compliant and portable terminal devices for conductors, and provide systems for smooth fare collection and income management system to railway operators. Our IoT solutions greatly contribute to labor saving and maintenance saving of customers throughrealization of various equipment monitoring and position monitoring, by leveraging cloud computing.

Current collectors(pantographs)

Door operating equipment

Facilities management solutions

Driving gear units

Master controllers
Total train communicationsystem

1Twin disk couplings
Propulsion inverters (VVVF inverter)

Contents/Editorial Policy/Our Long-Term Vision … 1
Over 100-Year History of Toyo Denki Seizo K.K. … 3
Consolidated Financial Highlights ………… 4
Message from the President ……………… 5
Value Creation Process at Toyo Denki Seizo … 9
Special Report Medium-Term Management Plan … 11
Message from the Executive Responsible forManagement Planning …………………… 12
Business Report
Business of the Toyo Denki Group ……… 13
Transportation Business Segment ……… 14
Industry Business Segment …………… 15
ICT Solution Business Segment ………… 16
New Business Development/IntellectualProperty ……………………………… 17
Sustainability
Sustainability Policy …………………… 19
Sustainability Roadmap ………………… 20
Initiative in Products and Services ……… 21
Initiative in Production Activities ………… 23
Initiative in Valuing People and Communities … 26
With Our Employees ………………… 26
With Our Local Communities ………… 27
Governance
Governance …………………………… 28
Corporate Governance ……………… 28
Directors, Statutory Auditors, andOperating Officers ………………… 30
Messages from Outside Executives … 31
Internal Control and Compliance …… 32
Risk Management ………………… 32
Risk Factors ……………………… 32
Information Security ……………… 34
Financial Report
Financial Review ……………………… 35
Reference Data for Management Indices … 36
Consolidated Balance Sheets …………… 37
Consolidated Statements of Incomeand Consolidated Statements ofComprehensive Income ………………… 39
Consolidated Statements of Changes inNet Assets ……………………………… 40
Consolidated Statements of Cash Flows … 41
Information
Stock Related Information ……………… 42
Company Profile ……………………… 43
Organization Chart ……………………… 44

Editorial Policy
We have been publishing this report since 2013
with the goal of allowing a wide range of stakeholders to have a better understanding of the Company.
This report combines our management policy with
reports on our businesses, sustainability, governance, finances, and other matters. We are committed to describing our initiatives during the year andour future direction in a manner that is easy to understand.
Period Covered by This Report
This report focuses on our activities in fiscal 2021
(from June 2021 to May 2022), but also contains
some information from outside this period.

Main motors

Passenger information
display system

Railway station operating
equipment systems

C O N T E N T S

Organizations Covered by This Report
This report covers Toyo Denki Seizo K.K. and its
subsidiaries and affiliates listed on Page XX.
Auxiliary power supply (SIV)

Reference Guidelines
The GRI Sustainability Reporting Standards (GRIStandards) / IIRC / Guidance for Value Creation /TCFD / Human Capital Guidelines

Toyo Denki Seizo Report 20222