S E M I A N N U A L

R E P O R T

For the Six Months Ended September 30, 2002

2003

PROFILE
What is now Toyota Industries Corporation (“Toyota Industries”) was founded in 1926 as
Toyoda Automatic Loom Works, Ltd. by the renowned Japanese inventor Sakichi Toyoda to
manufacture automatic looms. The enterprise proceeded over the years to diversify into suchfields as automobiles, materials handling equipment and electronics. In line with its strategy ofglobalization, Toyota Industries now has production facilities in Europe, North America andother regions.
The business universe of Toyota Industries consists of four segments: Automobile, which
comprises the vehicle (automobile assembly), engine and car air-conditioning compressor
businesses; Materials Handling Equipment, which specializes in forklift trucks and warehouseequipment; Textile Machinery, which covers the spinning and weaving machinery businesses;
and Others, which includes electronics and other businesses. Each of these segments alreadyhas or is building a secure footing in its particular fields. While the Car Air-Conditioning
Compressor and Materials Handling Equipment businesses currently make up the mainstays of
Toyota Industries’ operations, we believe that the Electronics Business is well positioned todevelop into the core of our future operations. Accordingly, we have been allocating
significant resources to these three businesses.
Our long-term strategy is to establish a conglomerate premium through technological andmarket synergies among our various businesses in order to produce added value in terms ofoverall performance.

Cautionary Statement with Respect to Forward-Looking Statements
This semiannual report contains projections and other forward-looking statements that involve risks and uncertainties. Our use of the words “expect,” “anticipate,”“estimate,” “forecast,” “plan” and similar expressions should be understood in this context. Projections and forward-looking statements are based on the current
expectations and estimates of Toyota Industries Corporation and its Group companies regarding their plans, outlook, strategies and results for the future. All suchprojections and forward-looking statements are based on management’s assumptions and beliefs derived from the information available to it at the time of producing
this report and are not guarantees of future performance. These projections and forward-looking statements are subject to change without notice, and Toyota
Industries Corporation and its Group companies will not necessarily inform you of such changes. Therefore, it is advised that you should not rely solely upon theseprojections and forward-looking statements in making your investment decisions. You should also be aware that certain risks and uncertainties could cause the actual
results of Toyota Industries Corporation and its Group companies to differ materially from any projections or forward-looking statements discussed in this report.
These risks and uncertainties include, but are not limited to, the following:i) Domestic and overseas economic conditions, particularly levels of consumer spending, demand for our products and private sector capital expenditureii) Adverse changes in laws and regulations, such as trade restrictions and tariffs, or stricter safety or emissions regulations, resulting in higher costs and/or sales
restrictionsiii) Currency exchange rate fluctuations, notably involving yen, U.S. dollars, Asian currencies and the euro — the currencies in which Toyota Industries Corporationand its Group companies have holdings and use to conduct their international businessiv) Fluctuations in market prices of securities in which Toyota Industries Corporation and its Group companies have substantial holdingsv) The ability of Toyota Industries Corporation and its Group companies to maintain their strength in many product development and geographical areas, throughsuch means as new product development and launches in highly competitive markets characterized by continual new product introductions, rapid technologicaladvances and fluctuations in demandvi) Effects of natural disasters, terrorist activities, war or political instability in the markets Toyota Industries Corporation and its Group companies servevii) Factors such as greater price competition in Asia, North America and Europe resulting from industry overcapacity or other factors; higher fuel prices or shortages offuel; labor or other constraints on the ability of Toyota Industries Corporation and its Group companies to restructure their business; work stoppages at theirfacilities or those of key suppliers; and the discovery of defects in their products resulting in delays in new product launches, recall campaigns, increased warranty
costs or litigation.

CONSOLIDATED FINANCIAL HIGHLIGHTS
Toyota Industries Corporation
Six months ended September 30, 2002 and 2001 (unaudited)

Millions of yen

Thousands of
U.S. dollars

September 30

September 30

2002

2001

% change

2002

8.7%

$ 4,245,424

For The Six Months
Net sales¥ 520,489 ¥ 478,965

Operating income
Income before income taxes

25,21425,37024,41026,6403.3(4.8)

205,661
206,933

Net income
Depreciation and amortization

13,614
26,847

15,13525,918(10.0)
3.6

111,044
218,980

Capital expenditures
Research and development expenses

40,08014,62644,132
14,255(9.2)
2.6

326,917
119,299

Per share of common stock (in yen or U.S. dollars):
Net income — basic

43.57

48.35

(9.9)

0.36

39.05
10.00

43.55
9.00

(10.3)
11.1

0.32
0.08

¥1,692,295 ¥1,613,296
823,014784,5224.9%
4.9$13,803,385
6,713,002

Net income — diluted
Cash dividends
At The Six Months‘ End
Total assets
Shareholders’ equity
Number of employees

24,877

23,206

7.2

Note: U.S. dollar amounts have been translated from yen, for convenience only, at the rate of ¥122.60 = US$1, the exchange rate on September 30, 2002.

Net Sales

Net Income(¥ Billion)
1,000

Total Assets

Shareholders’ Equity(¥ Billion)(¥ Billion)(¥ Billion)

30

2,000

1,000

800

800
1,500
20

600

600
1,000

400

400
10
500
200

200

0

0

0

FY 01
First Half

02

03

FY 01

02

03

0

FY 01

02

03

FY 01

02

03

Year

Contents
Consolidated Financial Highlights .……………....................…… 1
To Our Shareholders .………………………………................……2
Topics .……............................………................................….… 6
Management’s Discussion and Analysis ofFinancial Condition and Results of Operations .…………....... 8
Consolidated Balance Sheets .……...….................................…10
Consolidated Statements of Income .….........................………12
Consolidated Statements of Shareholders’ Equity ...….......……13

Consolidated Statements of Cash Flows .................…………… 14
Notes to Consolidated Financial Statements ..……..…………… 15
Certificate by Executive Vice President in
Charge of Accounting and Finance ..…………..………..……. 23
Directors and Corporate Auditors ……………….............……... 23
Corporate Data ...…………….............……….....…….....……… 24
Investor Information ………………............................. Back Cover1

TO OUR SHAREHOLDERSGRATIFYING PERFORMANCE DESPITEADVERSE ENVIRONMENT
net sales, operating income and ordinary income because we
succeeded in implementing a clearly defined strategy that
exploited our competitive strengths in each of our businesssegments and in making further significant cost reductions.
Note: U.S. dollar amounts have been translated from yen, for convenience only,at the rate of ¥122.60=US$1, the approximate exchange rate on theTokyo Foreign Exchange Market on September 30, 2002.

All Business Segments
in Good ShapeAll of Toyota Industries’ business segments saw their net sales
improve over the previous term. However, the level of

Akira Yokoi

Tadashi Ishikawa

ChairmanPresident

operating income varied by business segment, even thoughmost segments maintained stable operating incomes.
Note: Segment net sales figures do not include intersegment transactions.
However, segment operating income figures do include operating income
arising from intersegment transactions.

We are pleased to present the results of operations of Toyota
Industries Corporation (the “Company”) and its consolidated
subsidiaries (“Toyota Industries”) for the six months ended

Automobile Segment

September 30, 2002 (the “term”).

Our Automobile Segment consists of vehicle (automobile

Our results for the term can be summarized in a single

assembly), engine, car air-conditioning compressor and otherword: Gratifying. We achieved record highs for consolidated net

businesses (including foundry parts and electronic components

sales, operating income and ordinary income. Consolidated net

for automobiles). Net sales were ¥291.2 billion (US$2,375.4

sales totaled ¥520.5 billion (US$4,245.4 million) for the term,

million) for the term, an increase of 9.4% over the previous

an increase of 8.7% compared with the six months ended

term, and accounted for 56.0% of our total net sales for the

September 30, 2001 (the “previous term”). Consolidated

term. The increase was due mainly to a rise in sales of car air-

operating income was ¥25.2 billion (US$205.7 million) for theconditioning compressors and the fact that Toyota Motorterm, an increase of 3.3% compared with the previous term.

Corporation (“TMC”) started charging for some parts for

Consolidated ordinary income was ¥26.9 billion (US$219.5

automobiles we assemble that had previously been supplied

million) for the term, an increase of 1.0% over the previous

free. Operating income was ¥15.3 billion (US$124.6 million) for

term. Consolidated net income, however, was down 10.0% to

the term, an increase of 12.8% compared with the previous¥13.6 billion (US$111.0 million). This was due largely to a lossterm.

on disposal of property, plant and equipment that accompanied

Vehicle Business (Automobile Assembly Business)the relocation of a foundry plant.

During the term, we assembled four models underOur results were particularly gratifying considering theconsignment from TMC: Vitz (Yaris in Europe), TOYOTA’s global

adverse business environment that prevailed during the term.

strategic small car; RAV4 compact sport utility vehicle; bB Open

Except for certain regions such as Asia, the world economy as a

Deck; and Sprinter Carib (Corolla Wagon overseas, discontinued

whole remained sluggish due to a slow recovery in the U.S. andin July 2002). Though sales of the RAV4 were strong in North

falling stock prices worldwide. The Japanese economy seemed

America, sales of the Vitz (Yaris), our mainstay vehicle,

to have hit bottom at the beginning of the term and somedecreased as a result of TMC’s full-fledged local production ofindustries showed signs of an upturn. However, a poor stock

the Yaris in Europe and intensified competition in the domestic

market performance, weak private sector capital investment andsmall car market. Total Vehicle Business unit production for thestagnant consumer spending due to employment insecurities

term was 109,514, a decrease of 11,735 from the previous

together produced an economic standstill.

term.

Despite the unfavorable business environment, we were able

Net sales of the Vehicle Business amounted to ¥136.3 billion

to improve as compared with the previous term on consolidated2

(US$1,111.7 million) for the term, an increase of 5.3% over the

Materials Handling Equipment Segment

previous term. The increase was due to an increased sales ratio of

Our Materials Handling Equipment Segment manufactures anda more expensive model, as well as the fact that Toyota Industries

sells forklift trucks, warehouse trucks, automated storage andCorporation now pays for tires and hubcaps previously supplied

retrieval systems, and automatic guided vehicle systems. Net

free by TMC and recoups an identical aggregate amount in thesales for the term totaled ¥181.0 billion (US$1,476.5 million),form of increased unit prices to TMC.

an increase of 0.3% over the previous term. Operating income
was ¥7.6 billion (US$61.8 million) for the term, a decrease ofEngine Business

5.4% from the previous term.

We produce gasoline and diesel engines for TMC vehicles and forSales of the Materials Handling Equipment Segment

our own line of forklift trucks and other industrial vehicles. During
the term, gasoline engine production totaled 86,436 units, aincreased slightly over the previous term due in part to an

decrease of 2,155 units from the previous term. Production of theincrease in the number of consolidated subsidiaries, i.e.,

2AZ gasoline engine for the Estima (Previa in Europe), which

overseas forklift truck sales subsidiaries. Another factor for thestarted in August 2002, was insufficient to make up for aincrease was that strong sales of materials handling systems

decrease in production of the 5E gasoline engine.

such as automated storage and retrieval systems made up for adecrease in sales of forklift trucks and other materials handling

Production of diesel engines totaled 107,258 units for theequipment.

term, an increase of 16,166 units over the previous term.

During the term, total demand in the Japanese forklift truck

Production of the 1CD 2000cc direct injection turbo diesel
engine with common rail fuel system, which are fitted in themarket decreased to approximately 90% of the previous term,

Avensis, Corolla and RAV4 for Europe, increased.

while our sales were 95% of the previous term, outperforming
market demand. In North America and Europe, total demand

Total engine production amounted to 193,694 units for thefor the term was similarly sluggish due to the aftershocks of lastterm, an increase of 14,011 units over the previous term.

year’s September 11 terrorist attacks in the U.S. and otherIn April 2001, Toyota Industries Corporation absorbed TMC’s
Industrial Equipment Sales Division. Sales of engines for forklift

factors, but our sales, which exclude those of BT Industries,

trucks, which Toyota Industries Corporation previously sold tooutperformed the market.

TMC, are now recorded as intersegment transactions. Excluding

BT Industries’ orders received during the term (January tointersegment sales, sales of gasoline engines totaled 72,208 units

June 2002) were slightly up over the previous term (January to

for the term, a decrease of 4,246 units from the previous term,

June 2001). Orders received in Europe decreased in the firstand sales of diesel engines totaled 98,022 units for the term, an

quarter, but improved in the second quarter, marking a slightincrease of 16,095 units over the previous term. On the same

increase over the previous term. We believe that the Northbasis, total engine sales amounted to 170,230 units for the term,

American market has bottomed out, and BT Industries’ orders

an increase of 11,849 units over the previous term.

received increased compared with the previous term. On theother hand, BT Industries’ sales during the term decreased 8%

Net sales excluding intersegment sales totaled ¥58.5 billion(US$477.1 million) for the term, an increase of 12.3% over thefrom the previous term. Sales in Europe remained at

previous term.

approximately the same level, but sales in North America
registered a double-digit decrease as a percentage compared

Car Air-Conditioning Compressor Businesswith the previous term. Whereas a substantial order backlog

Car air-conditioning compressors developed and manufactured

resulted in higher sales in the previous term, sales in 2001

by Toyota Industries are marketed to leading auto manufacturers

exceeded orders received, and the order backlog had therefore

worldwide through DENSO Corporation (“DENSO”). For thedecreased at the end of the year.

term, sales in Japan increased due largely to a transfer of the

Our Materials Handling Equipment Segment also

assembly line for scroll-type compressors from DENSO.

manufactures and sells tow tractors, skid steer loaders, shovel

Overseas, strong car sales in the U.S. led to an increase inloaders, sweepers and other industrial equipment.

orders, and vigorous sales activities in Europe resulted in
expanded sales. In Japan, we sold 2.7 million units for the term,

Textile Machinery Segment

an increase of 0.3 million units over the previous term. Overseas,

Our Textile Machinery Segment comprises the Spinning

we sold 5.1 million units for the term, an increase of 0.7 million

Machinery Business, with the manufacture of ring spinning

units over the previous term. Total unit sales amounted to 7.8

frames at its core, and the Weaving Machinery Business, based

million units for the term, an increase of 1.0 million units over theon the manufacture of air-jet looms. Toyota Industries is a worldprevious term.

leader in both businesses. Net sales of the Textile Machinery

Net sales totaled ¥87.7 billion (US$715.7 million) for the

Segment amounted to ¥22.8 billion (US$186.0 million) for theterm, an increase of 11.9% over the previous term.

term, an increase of 40.8% over the previous term. Operating

3

TO OUR SHAREHOLDERS
income was ¥0.7 billion (US$5.7 million) for the term, anincrease of 249.8% over the previous term. This increase was due
largely to a substantial increase in exports of air-jet looms to
China and aggressive cost-reduction activities.
During the term, sales of the Spinning Machinery Business fell
short of those for the previous term. Sales in Japan and Pakistan
increased as a result of strong sales activities, but sales in
Bangladesh, Uzbekistan and Thailand decreased. The Weaving
Machinery Business, on the other hand, received a large order for
air-jet looms from a group of textile manufacturers in Jiangsu
Province, China earlier this year, resulting in a substantial increase

Tadashi Ishikawa

in exports to that country. Sales of water-jet looms also increased

President

in China, boosting sales of the Weaving Machinery Business overthe previous term.

Corporation embarked on an ambitious three-year cost-

Others Segment

reduction program to be implemented throughout theCompany. We have so far achieved most of the objectives as

The Others Segment comprises businesses that we enteredplanned. We established a special project team in each businesscomparatively recently. Although our operations in these fields

division to ensure that our cost-reduction activities wereare still relatively limited, we expect them to become a key pillar

systematic and thorough. As well as enhancing our ongoing VEof Toyota Industries in the future. One of these businesses is TIBC

(Value Engineering) and VA (Value Analysis) activities, we sought

Corporation (“TIBC”), a joint venture with Ibiden Co., Ltd. TIBC

to optimize our procurement of materials and components

produces ball grid array (BGA) plastic package substrates for IC

globally, and reduced general expenses and head office fixedchipsets, and flexible printed circuit (FPC) substrates for IC cards.

costs.

This segment also includes the manufacture and sales of press
dies and production equipment.

Exploiting IT

Net sales of the Others Segment totaled ¥25.4 billion

The exploitation of the latest advances in IT is one of our(US$207.6 million) for the term, an increase of 58.1% over theimportant strategic objectives. We believe that the potential

previous term. This increase was because an increase in sales ofimpact of IT on competitiveness will be significant.

production equipment and the consolidation of all five Taikoh

Using IT, we are overhauling our traditional way of doing

Transportation Group companies (which amounted to ¥11.4

business to accelerate management processes. We are alsobillion) outweighed a decrease in Electronics Business sales,seeking to improve productivity in our development andincluding those of TIBC, which resulted from the bursting of the

production departments through installation of three-

IT “bubble.” Operating income totaled ¥1.6 billion (US$12.9

dimensional CAD (Computer Aided Design) systems throughout

million) for the term, a decrease of 44.2% from the previous

the Company.

term, reflecting a performance by TIBC that did not meet

In addition, we are pushing ahead with the introduction of

expectations, and other factors.

ERP (Enterprise Resource Planning) systems to facilitate an

ST Liquid Crystal Display Corp. (“ST-LCD”), which produces

improvement in overall management and to allow swifter

low-temperature polysilicon TFT-LCDs, is a 50-50 joint venture

decision-making through universal access to a unified

with Sony Corporation, and we believe that ST-LCD will form the

management database. We have already set up ERP in ourcore of our Electronics Business in the medium to long term. ST-

Accounting and Purchasing departments.

LCD is not consolidated but accounted for by the equity method

In May 2002, we opened “e-Lab,” our base station forin Toyota Industries’ consolidated financial results. ST-LCD’sbuilding a Group-wide information system and conducting IT

performance for the term was worse than the previous term due

research. The e-Lab is responsible for researching digitalto an increase in depreciation that arose from the start-up of asimulation technologies with a view to reducing lead-times

second production line.

from development to manufacture to shipment. It is also
involved in developing an optimal network system for joint

Achievements During the Termdevelopment of parts with suppliers and for parts procurement.

Cost Reduction Activities

Capital and Business Collaboration

During the term, we reduced costs aggressively and improved

In May 2002, following the conclusion of a comprehensive

manufacturing productivity. In April 2001, Toyota Industries

agreement on capital and business collaboration between

4

Toyota Industries Corporation and Aichi Corporation (“Aichi”),

that even if some of our businesses experience difficulties, other

the Company acquired the new shares issued by Aichi. As abusinesses will perform well, so allowing Toyota Industries toresult, the Company now holds 34% of Aichi’s outstanding

continue on the path to stable and sustainable growth.

shares. We also obtained a warrant granting us an option to

For fiscal 2003 in full, we forecast the following:purchase up to 51% of Aichi’s shares in May 2003. We will

Consolidated net sales of ¥1,060 billion (US$8,646 million), an

closely monitor the effectiveness of the collaboration before

increase of 8.1% over fiscal 2002 and representing a ¥70 billion

deciding whether to exercise the warrant and welcome Aichi into

increase over our forecast at the beginning of fiscal 2003;

our network of subsidiaries. Although currently suffering from aordinary income of ¥50 billion (US$408 million), an increase ofdeteriorating market environment, Aichi is a leading

4.5% over fiscal 2002 and representing a ¥2 billion increase

manufacturer of aerial lift equipment, with a market share ofover our forecast at the beginning of fiscal 2003; and net

over 70% in Japan. In order to improve its performance, Aichi

income of ¥25 billion (US$204 million), a decrease of 8.5%

has been working to reduce costs and inventories, and shorten

from fiscal 2002 and representing a ¥1.5 billion increase overlead-times from order to shipment.

our forecast at the beginning of fiscal 2003.

The Company will provide Aichi with capital, production

Note: The financial projections set forth above are based upon a number ofassumptions and estimates that, while presented with numerical specificity
and considered reasonable by us when taken as a whole, are inherently
subject to significant economic, business, competitive, regulatory andoperational uncertainties, contingencies and risks, many of which arebeyond our control. Financial projections are necessarily speculative innature, and it can be expected that one or more of the assumptions
underlying the projections will prove not to be valid, and unanticipated
events and circumstances are likely to occur. Actual results will vary fromthe financial projections and those variations may be material.
Consequently, this report should not be regarded as a representation by us
or any other person that the financial projections will be achieved. Current
negative market trends in the global economy make it particularly difficult
to predict product demand and other related matters.

technology and production control know-how. In the future, weplan to transfer TOYOTA Material Handling Company’s*(“TMHC’s”) manufacturing operations for special-purpose
vehicles, including aerial lift equipment and skid steer loaders, toAichi, and have Aichi become a specialized manufacturer of thesevehicles. TMHC will in turn concentrate on the manufacture ofmaterials handling equipment such as forklift trucks andwarehouse equipment. Through efficient allocation ofmanagement resources, we will work to turn around Aichi’s
performance as well as increase our shareholder value.

Increasing Shareholder Value* TOYOTA Material Handling Company is a division of Toyota Industries Corporation,and manufactures and sells TOYOTA-brand materials handling equipment.

The most important aspect of our corporate mission is to increase
shareholder value. We consistently aim to improve medium- to

Business Outlook for Fiscal 2003

long-term profitability and increase shareholder value throughThe future course of the world economy is even more

efficient management and implementation of ambitious

unpredictable than ever. In the U.S., once-robust consumer

strategies with specific goals in each business area. Concurrently,

spending is waning and enterprises are cutting back on capital

as a responsible corporate citizen, we emphasize activities toinvestment. In Europe, some countries are showing signs of anprotect the natural environment and fulfill our other social

upswing, but Germany is slowing down and the situation in

responsibilities.

Europe as a whole is one of stagnation. In Japan, a rapid reboundWe thank all of our stakeholders, including shareholders,in consumer spending cannot be expected in the face of risingcustomers, suppliers, local communities and employees, for theirunemployment, and the slow recovery of the U.S. economy

support. As we look to secure further growth in shareholder

makes it difficult for Japan to turn its economy around throughvalue, we respectfully request a continuation of the support weexports. Economies in the rest of Asia, especially China, continue

have enjoyed to date.

to expand, but it is generally agreed that the pace of expansion

December 2002

will slacken as a result of the slow recovery in the U.S. We expectthat in the second half of fiscal 2003, ending March 31, 2003,
Toyota Industries will face increasingly challenging economic
conditions.
In these circumstances, we will seek to ensure that our

Akira Yokoi

products and services are attuned to customer needs. We will

Chairmanalso continue with our cost-reduction activities. Our strategy will
also include a wider use of IT in improving management
efficiency and a strengthening of our management base to makeit even more responsive to market changes.
We are confident that our long-standing policy ofTadashi Ishikawa

diversification will pay off in an unstable market environment, in

President

5

TOPICSIn this section, we review the highlights of Toyota Industries’ activities from April to October 2002.

N

E

W

P

L

In July 2002, Higashiura Plant started operations to
manufacture parts for car air-conditioning compressors. The
market demand for our compressors is expected to rise, andin order to cope with this increase, we are reinforcing the
production capacity of our facilities in Japan, North America
and Europe. In Japan, now that we have completed ourHigashiura Plant, we have a three-plant structure — in Kariya,
Obu and Higashiura.
Under the concept of using natural energy and attaining
harmony with the surrounding environment, we constructed
Higashiura Plant to consume 20% less electricity thanconventional plants of comparable size and production
capacity. We installed clean energy systems such as wind andsolar power generators as well as a cogeneration system. We
also installed a water recycling
system and a rainwater
utilization system to conserve
water resources.

E

W

P

N

T

S

Local Production and Sale ofForklift Trucks in China

Commencement of Higashiura Plant

NA

In anticipation of expanding demand in China, TOYOTA
Material Handling Company (“TMHC”) is constructing a new
forklift truck assembly plant within the premises of Toyota
Industry (Kunshan) Co., Ltd. (“TIK”), which is engaged in the
production of foundry parts in Kunshan, Jiangsu Province,
China. TMHC is slated to begin local production and sale offorklift trucks in April 2003. To begin with, the local plant willassemble 1-3 ton internal combustion forklift trucks, top
sellers in China, with an annual production capacity of 550
units. Closely monitoring the trend in demand, TMHC will
gradually increase unit production as well as the number ofmodels manufactured in China.

Local Production of Diesel Engines
in Poland
In October 2002, we established Toyota Motor Industries
Poland Sp.zo.o. (“TMIP”) jointly with Toyota Motor
Corporation (“TMC”) to manufacture diesel engines in JelczLaskowice, Poland. The Company’s equity share is 40%. To
accommodate an expected expansion of demand in Europe,
TMIP will engage in the production of 2000cc-class diesel
engines. TMIP is expected to start operations in 2005, withan annual production capacity of 120,000 units. The total
investment in this enterprise is expected to be 170 million
euros.

R

O

Introduction of Electric Pallet Trucks
into Japanese Market

D

U

C

T

S

products of BT Industries, already highly regarded in Europe
and the U.S., will lead to a realization of potential demand inJapan.

In May 2002, TMHC started
selling BT Industries’ electric
pallet trucks (BT MINIMOVER
and BT ORION, but both soldas “Minimover” under the“TOYOTA L&F*” brand name)in Japan, as part of its pursuitof synergistic benefits with BT
Industries, a world leader inwarehouse trucks. Although
Japan’s warehouse truck
market is still small, TMHC
expects the marketing of the* L&F stands for “Logistics and Forklifts,” and refers to materials handling systems,
and industrial vehicles and equipment.

Production Start-Up of
2AZ-FE Gasoline Engines
In August 2002, we started
production of the 2400cc 2AZgasoline engine with aluminum
block and variable valve timing
under consignment from TMC.
This engine is fitted in the Estima(Previa) for Japan, Europe andAustralia.

6

E

X

H

I

B

I

Exhibition of Materials Handling
Equipment at Hannover Messe 2002

I

O

N

S

air-jet loom since its
introduction in 1996, theJAT710 air-jet loom, to bemarketed in January 2003,
and the LW600 water-jet
loom. Also displayed was athree-dimensional cut-modelof a compact spinning system, whichenables spinning of high-grade compact
yarn with higher strength, less hairinessand improved evenness. The
JAT710 Air-Jet Loom
RX240NEW-EST, which is equipped withthis system, has been on the market since October 2002.

In April 2002, Hannover Messe, one of the world’s largest
industrial technology trade fairs, was held in Hannover,Germany, with the participation of more than 7,000 companies
from 80 countries around the world. Both Toyota Industrial
Equipment Europe, S.A.R.L. (“TIEE”), the European division of
TMHC, and BT Industries exhibited their own brand products at
CeMAT 2002, an exhibition within “The World Fair for Material
Handling and Logistics,” one of seven specialized fairs at
Hannover Messe.
TIEE showed mainly electric trucks such as the Easymoverelectric pallet truck, the 7FBRE reach truck and the 7FBMF
electric counterbalanced forklift truck, showcasing its wideranging product lineup and its capacity for finely-tuned afterservice. Under the theme of “Share Our Strength,” TIEE isconfident of success in promoting its ability to cater precisely toa broad range of materials handling needs.
BT Industries displayed a full range of products including
the CARGO counterbalanced trucks, as well as warehouse trucks
such as the BT IXION stacker truck, BT ORION/MINIMOVER
electric pallet trucks and BT VECTOR very narrow aisle truck.
Under the theme of “Don’t Buy Trucks,” BT Industriesemphasized the benefits of long-term rental and its capability
to provide full maintenance services.

BT BoothT

Advanced, Environment-Friendly
Technology at Tokyo Motor Show 2002
We displayed a selection of our advanced auto technologies atthe 36th Tokyo Motor Show, held from October 29 toNovember 3, 2002 at the Makuhari Messe, Chiba, on theoutskirts of Tokyo. Under our show theme of “Toyota Industries
Corporation supports transportation to accommodate people
around the world,” we displayed our product lineup withemphasis on environmental safety, high efficiency and reduced
costs in a variety of materials handling situations. We also
introduced key devices and environmental and electronics
technologies that back up these products.
We showcased car air-conditioning compressors, including
the CO2 refrigerant compressor (displayed for the first time inJapan) and continuous variable displacement compressors, aswell as electronic parts such as a battery charging system forelectric vehicles, DC-DC converter for hybrid vehicles and supercompact radio tuner module. In the materials handling field, we
exhibited a hand pallet truck andelectric hand pallet trucks, provided
by BT Industries on an OEM basis, aswell as Aichi
Corporation’struck-mounted
aerial lift.

TOYOTA 7FBMF
Electric
Counterbalanced
Forklift Truck

Cutting-Edge Textile MachineryShowcased at CITME2002
From October 15 to 19, 2002, the 8th China International
Textile Machinery Exhibition (CITME2002) was held in Beijing,
China. We displayed three units of the JAT610, our best-selling

Environmental Report 2002

implementation of LCA (Life Cycle Assessment). We also
outline our collective efforts to reduce the release ofpollutants during production processes and their impact
on the environment through efficient use of energy andresources. In addition, the report contains environmental
accounting data, calculated in accordance with theguidelines laid down by the Japanese Ministry of theEnvironment.
The contents of the latest Environmental Report,
together with details of our recent activities and related
matters, are also posted on our Web site at http://
www.toyota-industries.com/environment/.

In July 2002, we published the latest edition of ourEnvironmental Report, produced annually since 1999.
Written with reference to guidelines established by the
Ministry of the Environment, thereport explains our environmental
protection activities in detail. In our
2002 edition, we detail the progressof our Third Environmental Action
Plan (April 2001 to March 2006), as
well as development of environmentfriendly products through the7

MANAGEMENT’S DISCUSSION AND ANALYSIS OFFINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following Management’s Discussion and Analysis ofFinancial Condition and Results of Operations is based on
information known to management as of November 30,
2002. It includes forward-looking statements concerning
the expected future performance of Toyota Industries
Corporation. Please refer to “Cautionary Statement with
Respect to Forward-Looking Statements” at the beginningof this semiannual report, which pertains to the report as awhole.

Selling, general and administrative expenses totaled ¥58.5
billion for the term, an increase of ¥6.5 billion (12.6%) overthe previous term. This increase was due to an increase in
selling expenses of the Materials Handling Equipment
Segment.
Research and development expenses, included in SGA andmanufacturing costs, totaled ¥14.6 billion for the term. By
principal segment, research and development expenses were
¥9.2 billion for the Automobile Segment and ¥4.6 billion for
the Materials Handling Equipment Segment.

Results of Operations

Non-Operating Income and Expenses

Net SalesInterest and dividend income was ¥9.1 billion for the term, anincrease of ¥0.6 billion (7.5%) over the previous term. Interest
expenses were ¥5.3 billion for the term, a decrease of ¥0.2
billion (4.1%).
Non-operating income and expenses, net decreased ¥0.5
billion for the term, reflecting mainly a decrease in equity inearnings of affiliates.

During the six months ended September 30, 2002 (the“term”), it was anticipated that falling stock prices worldwide
would affect the economy. In Japan, private sector capital
investment continued to be stagnant. Overseas, prospects forthe future remained uncertain.
Against this background, total consolidated net sales ofToyota Industries amounted to ¥520.5 billion for the term, anincrease of ¥41.5 billion (8.7%) compared with the six
months ended September 30, 2001 (the “previous term”).
The increase was due mainly to increased sales of our
products in the Automobile and Textile Machinery segments.
Below are Toyota Industries’ sales for the term by geographic
segment, before elimination of intersegment transactions.

Extraordinary Losses
During the first half of fiscal 2003, an extraordinary loss of¥1.5 billion was posted as a result of loss on disposal ofproperty, plant and equipment that accompanied therelocation of a foundry plant.

Income Taxes■ JapanCurrent and deferred income taxes, net for the term totaled¥11.1 billion, an increase of ¥0.3 billion (3.0%) over theprevious term. The effective income tax rate increased from
40.5% to 43.8%.
Minority interest in consolidated subsidiaries decreased¥0.7 billion to ¥0.6 billion.

Sales totaled ¥395.7 billion for the term, an increase of ¥41.8
billion (11.8%) over the previous term. This increase was due
mainly to increased sales of our products in the Automobile
and Textile Machinery segments.

■ North America
Sales totaled ¥95.5 billion for the term, an increase of ¥0.2
billion (0.2%) over the previous term. Though sales of theAutomobile Segment increased, those of the Materials
Handling Equipment Segment decreased.

Net Income
Net income for the term was ¥13.6 billion, a decrease of ¥1.5
billion (10.0%) from the previous term. Net income per sharewas ¥43.57, compared with ¥48.35 for the previous term, anddiluted net income per share was ¥39.05, compared with
¥43.55 for the previous term.

■ Europe
Sales totaled ¥69.9 billion for the term, an increase of ¥9.3
billion (15.3%) over the previous term. This increase reflected
an increase in sales of our products in the Materials Handling
Equipment Segment.

Financial Position
Total assets at the end of the term stood at ¥1,692.3 billion, adecrease of ¥78.1 billion (4.4%) from the total as of March 31,
2002 (end of the previous fiscal year). This decrease was due
largely to a decrease of ¥110.0 billion (11.2%) in the carrying
amount of investment securities.
Current assets were ¥312.8 billion at the end of the term,
an increase of ¥17.5 billion (5.9%) over the previous fiscal
year. This increase was due largely to increases in trade notes
and accounts receivable in an amount of ¥11.7 billion (10.9%)
as a result of a sales increase by the Textile Machinery
Segment and the consolidation of Taikoh Transportation
Group.
Net property, plant and equipment was ¥352.2 billion at■ Others
Sales totaled ¥2.0 billion for the term, an increase of ¥0.1
billion (5.9%) over the previous term.
* Please refer to “To Our Shareholders” for results by business segment.

Cost of Sales and Selling, General and
Administrative Expenses
Cost of sales for the term totaled ¥436.8 billion, an increase of¥34.2 billion (8.5%) over the previous term. This was due
mainly to a sales increase by the Automobile and Textile
Machinery segments.

8equivalents for the term increased ¥6.2 billion, compared witha decrease of ¥17.0 billion for the previous term. As a result,cash and cash equivalents as of September 30, 2002 stood at¥77.3 billion.

the end of the term, an increase of ¥14.6 billion (4.3%) overthe previous fiscal year. This increase was due to theconstruction of Higashiura Plant and “e-Lab,” our information
technology research laboratory, as well as the consolidation of
Taikoh Transportation Group.
Intangible assets stood at ¥94.0 billion at the end of theterm, a decrease of ¥0.9 billion (0.9%) from the previous fiscal
year. This decrease was because a decrease in goodwill
outweighed an increase in software.
Investments and other assets stood at ¥933.2 billion at theend of the term, a decrease of ¥109.3 billion (10.5%) from theprevious fiscal year. This reflected an 11.2% decrease in the
carrying amount of investment securities of Toyota Motor
Corporation (“TMC”), Toyota Group companies and others in a
total amount of ¥110.0 billion.
Current liabilities stood at ¥377.2 billion at the end of theterm, an increase of ¥140.6 billion (59.4%) over the previous
fiscal year. Short-term loans increased ¥133.1 billion sincecertain long-term loans, corporate bonds and convertible
bonds became due to mature within one year.
Long-term liabilities were ¥469.4 billion at the end of theterm, a decrease of ¥166.7 billion (26.2%) from the previous
fiscal year. ¥133.1 billion of certain long-term loans, corporate
bonds and convertible bonds was reclassified to the category ofshort-term loans. Deferred tax liabilities also decreased by¥44.9 billion (14.2%), because the carrying amount ofinvestment securities decreased.
Minority interest in consolidated subsidiaries increased ¥3.8
billion (20.4%) to ¥22.7 billion at the end of the term, due
mainly to the consolidation of Taikoh Transportation Group.
Shareholders’ equity was ¥823.0 billion at the end of theterm, a decrease of ¥55.8 billion (6.3%) from the previous
fiscal year. Net unrealized gains on other securities decreased¥63.8 billion (14.0%), outweighing an increase in retained
earnings of ¥10.2 billion (4.0%). The ratio of shareholders’equity to total assets decreased from 49.6% to 48.6%.

Basic Policy on the Distribution of Profits
Toyota Industries Corporation’s dividend policy is based on
maintaining stable dividends while giving proper consideration
to business performance, the dividend payout ratio and otherfactors as it makes every effort to meet the expectations ofshareholders.
Toyota Industries Corporation will use retained earnings toaggressively pursue business expansion and strengthen its
corporate constitution in order to secure future profits for its
shareholders. It will also use retained earnings to purchasetreasury stock.
On October 28, 2002, the Board of Directors of Toyota
Industries Corporation voted to distribute an interim cash
dividend of ¥10.0 per common share, an increase of ¥1.0 overthe previous term. The interim cash dividend was payable on
November 26, 2002.

Stock Repurchase Program
On June 27, 2002, the Ordinary General Meeting of
Shareholders resolved to authorize the Board of Directors of
Toyota Industries Corporation to repurchase up to 20 millionof the Company’s common shares at a total purchase price notexceeding ¥50 billion. This allows the Company to implement
flexible capital policies in accordance with the current businessenvironment.
Accordingly, Toyota Industries Corporation purchased 1
million of its common shares at a total purchase cost of ¥1.9
billion during the term.

Stock Option Incentive Plan

Cash FlowsIn June 2002, the Ordinary General Meeting of Shareholders of
Toyota Industries Corporation approved a grant of shareacquisition rights as a stock option incentive plan to board
members and designated key employees.
The purpose of this plan is to further motivate senior
management in enhancing shareholder value.
In accordance with the resolution of the shareholders’meeting, a total of 728,000 shares at a predetermined price
was granted in August 2002 to 145 people (30 directors and
115 associate directors and general managers). The number ofshares granted per person varies from 2,000 to 20,000 inaccordance with the degree of contribution to the Company.
The grant price is the higher of the closing price on theTokyo Stock Exchange on the date of grant and 1.05 times theaverage closing price in the full calendar month prior to themonth of the grant date. Recipients may not exercise theoption within the first two years. Subsequent to the initialperiod, the option must be exercised or waived within thenext four years.

Net cash provided by operating activities was ¥42.4 billion for
the term, an increase of ¥10.8 billion (34.2%) over theprevious term. An increase in receivables was offset by adecrease in inventories, income tax payments and an increasein other liabilities.
Net cash used in investing activities was ¥42.8 billion for
the term, a decrease of ¥14.5 billion (25.3%) from the previous
term. This decrease was due mainly to the expenditure arisingfrom the acquisition of TMC’s Industrial Equipment Sales
Division during the previous term.
Net cash provided by financing activities was ¥7.7 billion
for the term, a decrease of ¥0.9 billion (10.5%) from theprevious term. Payments for purchase of treasury stocks were¥1.9 billion, an increase of ¥0.5 billion. During the term,
Toyota Industries paid ¥3.1 billion in cash dividends, anincrease of ¥0.3 billion over the previous term.
Including translation adjustments, cash and cash

9

CONSOLIDATED BALANCE SHEETS
Toyota Industries Corporation
As of September 30 and March 31, 2002, and September 30, 2001 (unaudited)Thousands of
U.S. dollars(Note 1)Millions of yen
September 30

March 31

September 30

September 30

2002

2002

2001

2002

77,286 ¥71,120 ¥78,258ASSETS
Current assets:¥

Cash and cash equivalents (Note 2(3))$

630,392

119,542

107,821

107,561

975,057

Short-term investments (Notes 2(4) and 6)

8,664

7,979

13,54370,669Inventories (Note 2(5))

66,77370,511

67,042544,641

Deferred tax assets

12,657

10,081

8,885

103,238

Other current assets

29,70329,731

27,515242,275

Less — allowance for doubtful accounts (Note 2(8))(1,791)(1,917)(1,595)(14,608)

312,834

295,326

301,2092,551,664

Buildings and structures

112,762

102,659

96,958919,755

Machinery, equipment and vehicles

153,882

149,259

145,461

1,255,155

Tools, furniture and fixtures

15,540

15,483

15,374

126,754

Land

54,161

46,55046,311

441,770

Construction in progress

15,87523,692

19,832

129,486

Total property, plant and equipment

352,220337,643

323,936

2,872,920

Software

7,597

6,347

2,850

61,966

Goodwill

86,41988,52885,193704,886

Total intangible assets

94,016

94,87588,043766,852

Investments in securities (Notes 2(4) and 6)

876,337

986,355

845,972

7,147,936

Long-term loans

10,206

11,533

10,901

83,246Long-term prepaid expenses

14,507

11,927

9,774

118,328

Deferred tax assets

2,826

2,237

2,310

23,050

Other investments and other assets

29,581

30,621

31,259241,281

(232)

(116)

(108)

(1,892)

933,225

1,042,557

900,108

7,611,949

1,379,461

1,475,075

1,312,087

11,251,721¥1,692,295 ¥1,770,401 ¥1,613,296$13,803,385

Trade notes and accounts receivable

Total current assets
Fixed assets:
Property, plant and equipment (Note 2(6)):

Intangible assets (Note 2(7)):

Investments and other assets:

Less — allowance for doubtful accounts (Note 2(8))

Total investments and other assets
Total fixed assets
Total assets
The accompanying notes are an integral part of these financial statements.

10Thousands of
U.S. dollars(Note 1)Millions of yen

LIABILITIES AND SHAREHOLDERS’ EQUITY

September 30

March 31

September 30

September 30

2002

2002

2001

2002

Current liabilities:
Trade notes and accounts payable¥ 111,741 ¥ 111,251 ¥ 103,811$

911,427

Short-term loans (Note 3(2))

166,467

33,371

38,725

1,357,806

Other payables

19,181

21,662

19,629156,452

Accrued expenses

38,22336,327

37,104

311,770

Accrued income taxes

12,208

8,611

10,891

99,576

Deposits received from employees

19,03918,54818,374

155,294

964

494

65

7,863

9,370

6,375

6,185

76,427377,193236,639

234,784

3,076,615

Long-term debt

156,290

281,983

278,677

1,274,796

Deferred tax liabilities

271,112315,978

262,548

2,211,354

Allowance for retirement benefits

32,664

28,84027,683

266,427

Other long-term liabilities

9,325

9,293

8,312

76,060Total long-term liabilities

469,391

636,094577,220

3,828,637
6,905,252

Deferred tax liabilities
Other current liabilities (Note 3(2))
Total current liabilities
Long-term liabilities:

Total liabilities

846,584

872,733

812,004

Minority interest in consolidated subsidiaries

22,697

18,856

16,770185,131

68,047––555,033

313,299,249 shares as of March 31, 2002–

68,022––313,299,249 shares as of September 30, 2001––

68,022–89,36589,32788,516

728,915
2,154,812

Shareholders’ equity:
Common stock:
Authorized — 1,091,245,000 shares
Issued—313,324,451 shares as of September 30, 2002

Capital surplus
Retained earnings

264,180

253,975

245,418

Net unrealized gains on other securities (Notes 2(4) and 6)

392,595

456,415

381,074

3,202,243

Foreign currency translation adjustments

11,97012,361

2,773

97,635

Treasury stock at cost

(3,143)(1,288)(1,281)(25,636)

823,014878,812784,522

6,713,002¥1,692,295 ¥1,770,401 ¥1,613,296$13,803,385— 1,512,010 shares as of September 30, 2002
503,091 shares as of March 31, 2002
499,235 shares as of September 30, 2001
Total shareholders’ equity
Total liabilities and shareholders’ equity

11

CONSOLIDATED STATEMENTS OF INCOME
Toyota Industries Corporation
For the six months ended September 30, 2002 and 2001 (unaudited)

Millions of yen

Thousands of
U.S. dollars(Note 1)For the six months
ended September 30

For the six months
ended September 30

2002

2001

2002

Net sales¥520,489¥478,965$4,245,424

Cost of sales

436,790402,6123,562,724

83,69976,353682,700

58,48551,943477,039

25,214

24,410205,661Interest income

4,667

4,370

38,067

Dividends income

4,424

4,086

36,085

Other non-operating income

4,679

3,362

38,164Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income:Non-operating expenses:
Interest expenses(5,263)(5,488)(42,928)

Other non-operating expenses(6,816)(4,100)(55,595)

26,90526,640219,454

Ordinary income
Extraordinary losses:(1,535)–(12,521)

25,37026,640206,933

Income taxes — current

14,467

12,144

118,002

Income taxes — deferred(3,355)(1,352)(27,365)

Loss on disposal of property, plant and equipment
Income before income taxes

Minority interest in consolidated subsidiaries
Net Income

644

713

5,252

¥ 13,614¥ 15,135$ 111,044

Yen

U.S. dollars

Net income per share — basic¥43.57¥48.35$0.36

Net income per share — diluted

39.05

43.55

0.32

Cash dividends per share

10.00

9.00

0.08

The accompanying notes are an integral part of these financial statements.

12

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
Toyota Industries Corporation
For the six months ended September 30, 2002 and 2001 (unaudited)
Millions of yen
Numberof shares(Thousands)

Balance at March 31, 2001
Net income

Commonstock

Capitalsurplus

Net unrealized
gains on other Translation
securities
adjustments

Retainedearnings

313,296 ¥68,019 ¥88,513 ¥233,368 ¥ 558,673 ¥ 2,746–––

15,135–

Treasurystock
at cost

¥

(21)

–

–

Cash dividends

–

–

–

(2,820)–––Bonuses to directors and corporate auditors

–

–

–

(265)

–

–

–

Net unrealized gains on other securities

–

–

–

–

(177,599)––

Foreign currency translation adjustments

–

–

–

–

–

27

–

Conversions of convertible bonds

3

3

3

–

–

–

–

(499)

–

–

–

–

–

(1,260)

Balance at September 30, 2001

312,800

68,02288,516245,418

381,074

2,773(1,281)

Balance at March 31, 2002

312,796

68,02289,327

253,975

456,415

12,361(1,288)Net income

–

–

–

13,614–––

Cash dividends

–

–

–

(3,128)–––Bonuses to directors and corporate auditors

–

–

–

(281)

–

–

–

Net unrealized gains on other securities

–

–

–

–

(63,820)––

Foreign currency translation adjustments

–

–

–

–

–

(391)

–

25

25

25

–

–

–

–

(1,009)

–

13

–

–

–

(1,855)

311,812 ¥68,047 ¥89,365 ¥264,180 ¥ 392,595 ¥11,970¥(3,143)

Other

Conversions of convertible bonds
Other
Balance at September 30, 2002

Thousands of U.S. dollars (Note 1)
Commonstock

Balance at March 31, 2002

Capitalsurplus

Net unrealized
gains on other Translation
adjustments
securities

Retainedearnings

Treasurystock
at cost$554,829 $728,605 $2,071,574 $3,722,798 $100,824 $(10,505)

Net income––

111,044–––

Cash dividends––(25,514)–––

Bonuses to directors and corporate auditors––(2,292)–––Net unrealized gains on other securities

–

–

–

(520,555)––

Foreign currency translation adjustments

–

–

–

–

(3,189)

–

204

204

–

–

–

–

–

106

–

–

–

(15,131)

Conversions of convertible bonds
Other
Balance at September 30, 2002

$555,033 $728,915 $2,154,812 $3,202,243 $ 97,635 $(25,636)

The accompanying notes are an integral part of these financial statements.

13

CONSOLIDATED STATEMENTS OF CASH FLOWS
Toyota Industries Corporation
For the six months ended September 30, 2002 and 2001 (unaudited)

Millions of yen

Thousands of
U.S. dollars(Note 1)For the six months
ended September 30

For the six months
ended September 30

2002

2001

2002

¥ 25,370¥ 26,640$ 206,933

26,84737(9,091)5,263
1,791(9,596)
2,266
(803)
8,520

25,91828(8,456)
5,488
(544)
5,335
(1,067)(9,983)
131

218,980302(74,152)
42,92814,608(78,271)
18,483(6,550)69,49550,60443,490412,756

Interest and dividends income received
Interest expenses paid
Income taxes paid

9,519
(5,857)(11,910)

8,475(5,745)(14,665)

77,643(47,773)(97,145)

Net cash provided by operating activities

42,35631,555345,481(1,662)
3,038(43,927)452(11,335)
9,748(1,008)2,000(35,464)
429(3,904)
72(13,556)
24,780(358,295)
3,687(92,455)
79,511

1,133(1,489)2,412–(1,216)(674)(1,506)
1,528(23,685)
4,884

9,241
(12,145)
19,674–(9,919)(42,846)(57,328)(349,477)(Decrease) increase in short-term loans
Proceeds from long-term loans
Repayments of long-term loans
Payments for purchase of treasury stocks
Cash dividends paid
Cash dividends paid for minority shareholders
Others, net
Net cash provided by financing activities(796)
21,421(8,337)(1,855)(3,128)
(194)
567
7,678

7,137
7,060
(1,282)(1,382)(2,820)
(319)
187
8,581

(6,493)
174,723(68,002)(15,131)(25,514)(1,582)
4,625
62,626

Translation adjustments of cash and cash equivalents(1,022)

153(8,336)

Net increase (decrease) in cash and cash equivalents

6,166(17,039)

50,294

Cash flows from operating activities:

Income before income taxes
Adjustments to reconcile income before income taxes
to net cash provided by operating activities:
Depreciation and amortization
Increase in allowance for doubtful accounts
Interest and dividends income
Interest expenses
Equity in net loss (earnings) of affiliates(Increase) decrease in receivables
Decrease (increase) in inventories
Decrease in payables
Others, net
Subtotal

Cash flows from investing activities:

Payments for purchases of marketable securities
Proceeds from sales of marketable securities
Payments for purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Payments for purchases of investment securities
Proceeds from sales of investment securities
Payments for acquisition of subsidiaries’ stock
resulting in change in scope of consolidation
Payments for loans madeProceeds from collections of loans
Payments for acquisition of business
Others, net
Net cash used in investing activities
Cash flows from financing activities:

Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
The accompanying notes are an integral part of these financial statements.

14

71,12095,297580,098¥ 77,286¥ 78,258$ 630,392

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of presenting interim consolidated financial statements
The accompanying interim consolidated financial statements
have been prepared based on the accounts maintained by
Toyota Industries Corporation (the “Company”) and its
consolidated subsidiaries (together, hereinafter referred to as“Toyota Industries”) in accordance with the provisions set
forth in the Japanese Commercial Code and the Securities
and Exchange Law, and in conformity with accounting
principles and practices generally accepted in Japan, which
are different in certain respects from the application anddisclosure requirements of International AccountingStandards.
Certain items presented in the interim consolidated
financial statements submitted to the Director of Kanto
Finance Bureau in Japan have been reclassified in theseaccounts for the convenience of readers outside Japan.
The interim consolidated financial statements are notintended to present the consolidated financial position,
results of operations and cash flows in accordance withaccounting principles and practices generally accepted incountries and jurisdictions other than Japan.
Amounts in U.S. dollars are included solely for theconvenience of readers outside Japan. The rate of ¥122.60 =US$1, the approximate rate of exchange prevailing at
September 30, 2002, has been used in translation. The
inclusion of such amounts is not intended to imply that theJapanese yen have been or could be readily converted,
realized or settled in U.S. dollars at this rate or any otherrates.

2. Summary of significant accounting policies(2) Investments in unconsolidated subsidiaries
and affiliates(1) Consolidation
The interim consolidated financial statements include theaccounts of the Company and its 118 subsidiaries(32 domestic subsidiaries and 86 overseas subsidiaries, which
are listed on pages 24 and 25) as of September 30, 2002
and 109 subsidiaries (26 domestic subsidiaries and 83
overseas subsidiaries) as of September 30, 2001. The
unconsolidated subsidiaries are excluded from consolidation
because such subsidiaries would have no material effect on
the consolidated financial statements of Toyota Industries, orToyota Industries’ owning a majority of such subsidiaries’
shares would be temporary.
For the six-month period ended September 30, 2002,
seven subsidiaries were newly added to the scope of
consolidation, and two unconsolidated subsidiaries are
excluded from the scope of consolidation because majority
ownership of those two subsidiaries is temporary.
For the six-month period ended September 30, 2001,
12 subsidiaries were newly added to the scope of
consolidation and three BT Industries group companies havebeen excluded from the scope of consolidation. Since fivesubsidiaries out of 12 subsidiaries were deemed as being
acquired by the Company as of the interim period end, they
were consolidated only in the balance sheets. Twounconsolidated subsidiaries are excluded from the scope of
consolidation because majority ownership of those two
subsidiaries is temporary.
The interim periods of certain subsidiaries are different
from the interim period of the Company. Since thedifference is not more than three months, the Company isusing those subsidiaries’ statements for their interim periods,
making adjustments for significant transactions thatmaterially affect the financial position or results ofoperations.
All significant intercompany transactions, balances andunrealized profits among Toyota Industries have been
eliminated.
A full portion of the assets and liabilities of the acquired
subsidiaries is stated at fair value as of the date of acquisitionof control.

Investments in two unconsolidated subsidiaries and
18 affiliates as of September 30, 2002 and investments in
two unconsolidated subsidiaries and 17 affiliates as of
September 30, 2001 are accounted for by the equity methodof accounting.
Investments in unconsolidated subsidiaries and affiliates
not accounted for by the equity method are stated at cost
due to their insignificant effect on the consolidated financial
statements.
The major affiliates accounted for by the equity method
are listed on page 25.

(3) Cash and cash equivalents
Cash and cash equivalents include all highly liquid
investments, generally with original maturities of threemonths or less, that are readily convertible to known
amounts of cash and are so near maturity that they present
insignificant risk of changes in value because of changes ininterest rates.

(4) Marketable securities and investments
in securities
Toyota Industries classifies securities into four categories bypurpose of holding: trading securities, held-to-maturity
securities, other securities, and investments inunconsolidated subsidiaries and affiliates. Toyota Industries
did not have trading securities or held-to-maturity securities
as of September 30, 2002 and 2001, respectively. Other
securities with fair values are stated at fair value based onmarket prices at interim period end. Unrealized gains andlosses are included in net unrealized gains on other securities
as a separate component of shareholders’ equity. Cost of
sales of such securities is determined by the moving averagemethod. Other securities without fair values are stated atcost, as determined by the moving average method.
Investments in unconsolidated subsidiaries and affiliates
are accounted for by the equity method (see Note 2 (2)above).

15

(5) Inventories(12) Consumption tax

Inventories are stated mainly at cost determined by themoving average method.

The consumption tax under the Japanese Consumption Tax
Law withheld by Toyota Industries on sales of goods is notincluded in the amount of net sales in the accompanying
interim consolidated statements of income, and theconsumption tax paid by Toyota Industries under the law onpurchases of goods and services, and expenses are notincluded in the related amount.

(6) Property, plant and equipment, anddepreciation
Property, plant and equipment are stated at cost.
Depreciation expenses of property, plant and equipment
are computed mainly by the declining-balance method for
the Company and Japanese subsidiaries and by the straightline method for foreign subsidiaries. Significant renewals andadditions are capitalized at cost. Repair and maintenance arecharged to income as incurred.
Accumulated depreciation as of September 30, 2002 and2001 was ¥462,196 million ($3,769,951 thousand) and¥434,792 million, respectively.

(13) Hedge accounting(a) Method of hedge accounting
Mainly the deferral method of hedge accounting is applied.
In case of foreign currency forward contracts and foreign
currency option contracts, the hedged items are translated atcontracted forward rates if certain conditions are met.

(b) Hedging instruments and hedged items
Hedging
instruments:(7) Intangible assets and amortization
Amortization of intangible assets is computed using thestraight-line method. Software costs for internal use areamortized by the straight-line method over their expected
useful lives (mainly five years).
Goodwill, if material, is amortized principally over lessthan 20 years on a straight-line basis, while immaterial
goodwill is charged to income as incurred.

Hedged items:(8) Allowances for doubtful accounts

Derivative instruments (interest rate swaps,
foreign currency forwards and foreign
currency options)
Risk of change in interest rate on
borrowings and risk of change in forward
exchange rate on transactions
denominated in foreign currencies(monetary assets and liabilities, marketablesecurities and forecasted transactions)Toyota Industries adopted the policy of providing anallowance for doubtful accounts in an amount sufficient tocover possible losses on collection by estimating individuallyuncollectible amounts and applying to the remaining
accounts a percentage determined by certain factors such as
historical collection experiences.

(c) Hedging policy(9) Deferred charges(d) The method used to measure hedge effectiveness

Stock issuance costs and bond issuance costs are expensed as
incurred.

Hedge effectiveness is measured by comparing accumulatedchanges in market price of hedged items and hedging
instruments or accumulated changes in estimated cash flows
from the inception of the hedge to the date of measurements
performed. Currently it is considered that there are highcorrelations between them.

Hedging transactions are executed and controlled based on
Toyota Industries’ internal rule. Toyota Industries is hedging
interest rate risks and foreign currency risks. Toyota
Industries’ hedging activities are reported periodically to a
director responsible for accounting.

(10) Allowance for retirement benefits
Toyota Industries accrues an amount which is considered to
be incurred in the period based on estimated benefit
obligations and estimated pension assets at the end of
period.
To provide for the retirement benefits for directors andcorporate auditors, an amount which is calculated at the endof the period as required by an internal rule describing theretirement benefits for directors and corporate auditors is
accrued.

(e) Others
Due to the fact that counterparties to Toyota Industries
represent major financial institutions which have highcreditworthiness, Toyota Industries believes that the overall
credit risk related to its financial instruments is insignificant.

(14) Appropriation of retained earnings
In the accompanying interim consolidated statements ofshareholders’ equity, the approved amount during therelevant fiscal year is reflected for the appropriation ofretained earnings of consolidated subsidiaries. In Japan, thepayment of bonuses to directors and corporate auditors ismade out of retained earnings through an appropriation,
instead of being charged to the income for the period.

(11) Lease transactions
Finance leases other than those that are deemed to transfer
the ownership of the leased assets to lessees are accounted
for mainly by the method similar to that applicable toordinary operating leases.

16

3. Assets pledged as collateral(1) Assets pledged as collateral as of September 30, 2002 and 2001 are as follows:
Millions of yen

Thousands of
U.S. dollars

2002

2001

2002

Investments in securities
Property, plant and equipment (other)
Machinery, equipment and vehicles
Trade notes and accounts receivable
Cash and bank deposits¥25,080
8,874
560
482
42

¥17,467
9,727
–
200
29

$204,568
72,382
4,568
3,931
342

Total

¥35,038¥27,423$285,791(2) Secured liabilities as of September 30, 2002 and 2001 are as follows:
Millions of yen

Thousands of
U.S. dollars

2002

2001

2002

Other current liabilities
Short-term loans
Long-term debt
Bonds

¥18,735
8,930
3,924
300

¥17,984
11,8593,273
300$152,814
72,83832,007
2,447

Total

¥31,889¥33,416$260,106

4. Contingent liabilities
Toyota Industries is contingently liable for guarantees as of September 30, 2002 and 2001 as follows:
Millions of yen

Guarantees given by the Company
Guarantees given by consolidated subsidiaries
Guarantee forwards given by the Company
Acts similar to guarantees given by consolidated subsidiaries
Guarantees given by consolidated subsidiaries as of
September 30, 2002 and 2001 consist of 455,290 thousandof Swedish krona and 250,538 thousand of Swedish krona,

Thousands of
U.S. dollars

2002

2001

2002

¥28,356
5,923
3,761
–

¥

$231,289
48,31230,677
–

283
2,869
3,251
14,522

respectively. Acts similar to guarantees given by consolidated
subsidiaries as of September 30, 2001 consist of 1,268,283
thousand of Swedish krona.

17

5. Leases(1) Finance leases (as a lessee) which do not transfer ownership of leased properties to lessees(a) Pro forma information regarding leased properties such as acquisition cost equivalents and accumulated depreciationequivalents under finance leases as of September 30, 2002 and 2001 is as follows:
Thousands of
U.S. dollars

Millions of yen

2002

2001

2002

Machinery and equipment:
Acquisition cost equivalents
Accumulated depreciation equivalents¥7,721
2,409¥1,635
777$62,977
19,649Machinery and equipment interim period end balance equivalents

5,312

858

43,328Tools, furniture and fixtures :Acquisition cost equivalents
Accumulated depreciation equivalents

5,410
2,608

4,922
2,222

44,127
21,272Tools, furniture and fixtures interim period end balance equivalents

2,802

2,700

22,855

Total net leased properties¥8,114¥3,558$66,183

Acquisition cost equivalents include the imputed interest
expense portion because the percentage which is computedby dividing future minimum lease payments by total balanceof property, plant and equipment, etc., at interim period
ends is immaterial.

(b) Pro forma information regarding future minimum lease payments as of September 30, 2002 and 2001 is as follows:
Millions of yen

Thousands of
U.S. dollars

2002

2001

2002

Due within 1 year
Due after 1 year

¥2,2705,844¥1,3992,159$18,516
47,667

Total¥8,114¥3,558$66,183

Millions of yen

Thousands of
U.S. dollars¥1,272
772$10,375–

Future minimum lease payments under finance leases include the imputed interest expense portion.
(c) Total lease payments for the six-month periods ended September 30, 2002 and 2001 are as follows:

2002
2001

useful lives for the six-month periods ended September 30,
2002 and 2001, and are equivalent to the amount of totallease payments of the above.

Pro forma depreciation expenses, which are not reflected in
the accompanying interim consolidated statements ofincome, are computed mainly by the straight-line method
which assumes zero residual value and leasing term to be(2) Finance leases (as a lessor) which do not transfer ownership of leased properties to lessees(a) Information regarding leased properties such as acquisition cost and accumulated depreciation under finance leases as of
September 30, 2002 and 2001 is as follows:
Millions of yen

Thousands of
U.S. dollars

2002

2001

2002

Machinery and equipment:
Acquisition cost
Accumulated depreciation¥7,238
4,088¥7,333
4,061$59,037
33,344

Total net leased properties¥3,150¥3,272$25,69318

(b) Pro forma information regarding future minimum lease payments as of September 30, 2002 and 2001 is as follows:
Thousands of
U.S. dollars

Millions of yen

2002

2001

2002

Due within 1 year
Due after 1 year

¥1,9152,709¥1,893
2,681$15,620
22,096

Total¥4,624¥4,574$37,716

Millions of yen

Thousands of
U.S. dollars¥1,0181,210$8,303–

Millions of yen

Thousands of
U.S. dollars

¥751
709

$6,126–

Future minimum lease payments under finance leases include the imputed interest income portion.
(c) Total lease receipts for the six-month periods ended September 30, 2002 and 2001 are as follows:

2002
2001
(d) Depreciation for the six-month periods ended September 30, 2002 and 2001 is as follows:

2002
2001

(3) Operating leases (as a lessee)
Pro forma future lease payments under operating leases as of September 30, 2002 and 2001 are as follows:
Millions of yen

Thousands of
U.S. dollars

2002

2001

2002

Due within 1 year
Due after 1 year

¥ 2,271
8,904¥ 1,803
4,973$18,524
72,626

Total¥11,175¥ 6,776$91,150(4) Operating leases (as a lessor)
Pro forma future minimum rentals under operating leases as of September 30, 2002 and 2001 are as follows:
Millions of yen

Thousands of
U.S. dollars

2002

2001

2002

Due within 1 year
Due after 1 year

¥ 4,186
7,631¥ 3,114
7,017$34,144
62,243

Total¥11,817¥10,131$96,38719

6. Marketable securities(1) As of September 30, 2002(a) Other securities with readily determinable fair value are as follows:
Millions of yen
Acquisition
cost

Carrying
amountDifference

Stocks
Bonds
Government and municipal bonds, etc.
Corporate bonds
Other bonds
Other¥174,418¥842,825¥668,407

0
7,644
3
470

0
7,640
3
650

–
(4)
–
180

Total

¥182,535¥851,118¥668,583

Thousands of U.S. dollars
Acquisition
cost

Carrying
amountDifference

Stocks
Bonds
Government and municipal bonds, etc.
Corporate bonds
Other bonds
Other$1,422,659 $6,874,592 $5,451,933

Total$1,488,866 $6,942,235 $5,453,369

062,34924
3,834

062,317
24
5,302

–
(32)
–
1,468

(b) Significant contents and carrying amount of securities (excluding held-to-maturity bonds within securities with fair value)
without readily determinable fair value are as follows:
Millions of yen

Held-to-maturity securities
Other securities
Domestic unlisted stocks excluding over-the-counter stocks
Money management fundForeign unlisted bonds¥–

15,137
20,072–Thousands of
U.S. dollars$–

123,467
163,719–(2) As of September 30, 2001(a) Other securities with readily determinable fair value are as follows:
Millions of yen
Acquisition
cost

Carrying
amountDifference

Stocks
Bonds
Government and municipal bonds, etc.
Corporate bonds
Other bonds
Other¥171,235¥819,825¥648,590

013,2113120

013,225
3
120

–
14
–
–

Total

¥184,569¥833,173¥648,604

20

(b) Significant contents and carrying amount of securities (excluding held-to-maturity bonds within securities with fair value) notpracticable to be stated at fair value as of September 30, 2001, are as follows:
Millions of yen

Held-to-maturity securities
Other securities
Domestic unlisted stocks excluding over-the-counter stocks
Money management fundForeign unlisted bonds¥–

12,9785,924
406

7. Derivative instruments
Notes relating to derivative instruments are omitted, since Toyota Industries has not used derivative instruments for other thanhedging.

8. Segment information(1) Business segments
Millions of yen

Thousands of
U.S. dollars

For the six months
ended September 30

For the six months
ended September 30

2002

2001

2002

¥291,218
7,505
298,723¥266,143
6,637
272,780$2,375,351
61,2152,436,566

181,02156
181,077

180,526
27
180,553

1,476,517
457
1,476,974

22,801
5
22,806

16,195223
16,418

185,979
41
186,020

25,4495,518
30,967

16,101
6,586
22,687

207,577
45,008
252,585

Subtotal
Elimination of intersegment transactions
Total

533,573(13,084)¥520,489

492,438(13,473)¥478,965

4,352,145(106,721)$4,245,424

Operating costs and expenses:
Automobile
Materials handling equipment
Textile machinery
OthersElimination of intersegment transactions
Total¥283,441
173,500
22,10329,383(13,152)¥495,275¥259,236
172,546
16,217
19,847(13,291)¥454,555$2,311,917
1,415,171
180,286
239,665(107,276)$4,039,763

Operating income (loss):
Automobile
Materials handling equipment
Textile machinery
OthersElimination of intersegment transactions
Total¥ 15,282
7,577
703
1,584
68
¥ 25,214¥ 13,544
8,007
201
2,840
(182)
¥ 24,410$ 124,649
61,803
5,734
12,920555$ 205,661

Sales:
Automobile
Outside customer sales
Intersegment transactions
Materials handling equipment
Outside customer sales
Intersegment transactions
Textile machinery
Outside customer sales
Intersegment transactions
Others
Outside customer sales
Intersegment transactions

Main products of each segment
Automobile ………………………………… Passenger vehicles, diesel and gasoline engines, car air-conditioning compressors
Materials handling equipment …………… Counterbalanced forklift trucks, warehouse trucks, skid steer loaders, automated storage and retrieval systems, automatic guided vehicles
Textile machinery ………………………… Ring spinning frames, air-jet looms, water-jet looms
Others ……………………………………… Ball grid array plastic package substrates for IC chipsets, casting machines21

(2) Geographical segments
Millions of yen

Thousands of
U.S. dollars

For the six months
ended September 30

For the six months
ended September 30

2002

2001

2002

¥ 356,600
39,074
395,674¥324,118
29,723353,841$2,908,646
318,7113,227,357

94,762725
95,487

94,547704
95,251

772,936
5,914
778,850

67,7392,137
69,87658,506
2,118
60,624

552,520
17,431569,951

1,388
615

1,794
98

11,322
5,016

Subtotal
Elimination of intersegment transactions
Total

2,003
563,040(42,551)¥520,489

1,892
511,608(32,643)¥478,965

16,3384,592,496(347,072)$4,245,424

Operating costs and expenses:
Japan
North America
EuropeOthersElimination of intersegment transactions
Total¥374,084
92,58069,0492,139(42,577)¥495,275¥332,783
92,93259,450
1,951(32,561)¥454,555$3,051,256
755,139563,205
17,447(347,284)$4,039,763

Operating income (loss):Japan
North America
EuropeOthersElimination of intersegment transactions
Total¥ 21,590
2,907
827
(136)
26
¥ 25,214¥ 21,058
2,319
1,174
(59)
(82)
¥ 24,410$ 176,101
23,711
6,746(1,109)212$ 205,661

Sales:
Japan
Outside customer sales
Intersegment transactions
North America
Outside customer sales
Intersegment transactions
EuropeOutside customer sales
Intersegment transactions
Others
Outside customer sales
Intersegment transactions

Significant countries belonging to each segment
North America …………………………….. U.S.A., Canada
Europe ……………………………………… Sweden, France, Germany
Other ………………………………………. India, China

9. Subsequent event
On December 17, 2002, the Company issued bonds without
collateral in the principle amount of ¥80.0 billion. The
Company intends to use the proceeds from the bond issue

for the redemption of matured corporate bonds as well as forcapital investment.

10th series of bonds without collateral

11th series of bonds without collateral

Total amount of issue
Maturity date
Interest rate

Total amount of issue
Maturity date
Interest rate

¥30 billion
December 20, 2007
0.41%

22

¥50 billion
December 20, 2012
1.13%

CERTIFICATE BY EXECUTIVE VICE PRESIDENT
IN CHARGE OF ACCOUNTING AND FINANCE
I, being Executive Vice President in charge of Accounting and Finance, do hereby certify, to thebest of my knowledge and following reasonable investigation, that the accompanying consolidatedbalance sheets and the related consolidated statements of income, shareholders’ equity and cash
flows present fairly, in all material respects, the consolidated financial position of Toyota Industries
Corporation and its consolidated subsidiaries as of September 30, 2002, and the consolidated resultsof their operations and cash flows for the six months then ended, in conformity with accounting
principles generally accepted in Japan.
December 20, 2002

Koichiro Noguchi
Executive Vice President
Toyota Industries Corporation

DIRECTORS AND CORPORATE AUDITORS(As of September 30, 2002)

Board of Directors
ChairmanManaging Directors

Directors

Norio Sato

Tatsuro Toyoda

Masazumi Konishi

Yoshimitsu Ogihara

Shinjiro Kamimura

Seiji Ueda

Tadashi Ishikawa*

Tatsuo Matsuura

Shigetaka Yoshida

Executive Vice Presidents

Masanori Itoh

Tsuneyoshi Kajiwara

Akira Imura

Shinichiro Matsuyama

Iwao Katayama

Masafumi Kato

Honorary Chairman

Yasuharu Toyoda

Akira Yokoi*

President

Shozo Nakayama*
Koichiro Noguchi*
Tetsuro Toyoda*

Senior Managing Directors

Yoshitoshi Toyoda

Kimpei Mitsuya
Hiroya Kono

Morio Kawamura*

Kazunori Yoshida

Shiro Endo*

Kenji Takenaka

Kazuhiko Takeuchi*

Kosaku Yamada
Satoshi Kaseda*Representative Director

Corporate Auditors
Standing Corporate Auditors

Corporate Auditors

Shigetaka Mitomo

Iwao Isomura

Tadashi Komiya

Kosuke Shiramizu
Hiroshi Makino

23

CORPORATE DATA
(As of September 30, 2002)

Plants and Offices
Main Products
Kariya Plant
Takahama Plant
Nagakusa Plant
Kyowa Plant
Obu Plant
Hekinan Plant
Higashichita Plant
Higashiura Plant
Head Office and Others
Total

Textile machinery, car air-conditioning compressors
Forklift trucks, materials handling systems
Automobiles
Electronics equipment, press dies
Parts for car air-conditioning compressors, die-cast parts
Engines
Foundry parts
Parts for car air-conditioning compressors–

Number of
Employees

Land Area

1,791
1,448
2,188
744
380
1,440
378
57
1,473
9,899

171
329
271
159
156
271
332
244
602
2,535

(1,000 m2)

Consolidated Subsidiaries
LocationJapan
TIBC Corporation
TOYOTA L&F Tokyo Co., Ltd.
Logistics Planning Tokyo Co., Ltd.
Altex Co., Ltd.
Sun River Co., Ltd.
Izumi Machine Mfg. Co., Ltd.
TOYOTA L&F Keiji Co., Ltd.
Tokyu Co., Ltd.
Mino Tokyu Co., Ltd.
Advanced Logistics Solutions Co., Ltd.
Toyoda High System, Incorporated
Nishina Industrial Co., Ltd.
Suzaka Nishina Industrial Co., Ltd.
Tokaiseiki Co., Ltd.
Logistec Co., Ltd.
SKE Inc.
Taikoh Transportation Group *1 (5 Companies)
SK Maintenance Inc.
Iwama Loom Works, Ltd.
Kawamoto System Corporation
Arti Inc.
TOYOTA L&F Shizuoka Co., Ltd.
Hara Corporation
Mizuho Industry Co., Ltd.
Sun Valley Inc.
Sun Staff, Inc.
Tokai System Institute Corp.
Shine’s Inc.

Aichi
Tokyo
Tokyo
Shizuoka
Osaka
Aichi
Kyoto
Aichi
Gifu
Aichi
Aichi
NaganoNaganoShizuoka
Aichi
Aichi
–
Aichi
Aichi
Aichi
Aichi
Shizuoka
Gifu
Aichi
Aichi
Aichi
Aichi
Aichi

24

(thousands of the local currency)

EquityOwnership¥3,250,000¥350,000¥10,000¥200,000¥150,000¥150,000¥140,000¥135,000¥18,000¥100,000¥100,000¥100,000¥50,000¥98,000¥90,000¥78,500–¥50,000¥49,920¥47,000¥30,000¥30,000¥23,193¥20,000¥20,000¥20,000¥10,000¥10,000

60.0%
90.0%
90.0%
75.0%
81.3%
60.7%
65.0%
63.3%
93.4%
100.0%
90.0%
69.2%
96.8%
92.1%
100.0%
100.0%
–
70.0%
50.0%
100.0%
100.0%
90.0%
73.2%
93.8%
100.0%
100.0%
100.0%
100.0%

CapitalLocation

Capital(Thousands of the local currency)

EquityOwnership

SEK6,652,977–
US$146,000
US$37,900
US$60,000
US$12,500
US$2,000
US$1,500
US$1,300
US$100EUR20,452
Rs2,116,200
US$16,000
NOK110,000
NOK100
DKK9,000
DKK500EUR9,000
EUR716
GBP48
GBP10
EUR75
EUR1,250

100.0%–
60.0%
100.0%
100.0%
100.0%
60%
100.0%
100.0%
100.0%
65.0%
94.3%
70.0%
100.0%
100.0%
100.0%
100.0%
60.0%
100.0%
100.0%
100.0%
100.0%
100.0%

CapitalEquityOwnership

Outside Japan
Toyoda International Sweden AB *2
BT Industries Group *3 (64 companies)
Michigan Automotive Compressor, Inc.
Toyota Industries North America, Inc. *4
Toyota Industrial Equipment Mfg., Inc. *4
Toyota Material Handling USA, Inc. *4
ACTIS Manufacturing Ltd, LLC. *4
Toyota-Lift of Los Angeles, Inc. *4
Toyoda Textile Machinery, Inc. *4
Toyota Industries Personnel Service of America, Inc. *4
TD Deutsche Klimakompressor GmbH
Kirloskar Toyoda Textile Machinery Limited
Toyota Industry (Kunshan) Co., Ltd.
Toyota Truck Norge AS
Toyota Truckutleie Norge AS
Toyota Truck Danmark A/S
Toyota Truckudlejning Danmark A/S
Toyota Industrial Equipment, S.A.
Toyota Gabelstapler Deutschland GmbH
Toyota Industrial Equipment (UK) Limited
Toyota Industrial Equipment (Northern) Limited
Toyota Industrial Equipment Europe, S.A.R.L.
Toyota Carrelli Elevatoria Italia S.r.l.

Mjölby, Sweden–
Parma, Michigan, U.S.A.
Schaumburg, Illinois, U.S.A.
Columbus, Indiana, U.S.A.
Irvine, California, U.S.A.
Grapevine, Texas, U.S.A.
Santa Fe Springs, California, U.S.A.
Charlotte, North Carolina, U.S.A.
Schaumburg, Illinois, U.S.A.
Straßgräbchen, Germany
Bangalore, Karnataka, India
Kunshan, Jiangsu, China
Trondheim, Norway
Trondheim, Norway
Vejle, Denmark
Vejle, Denmark
Ancenis, France
Duisburg, Germany
Castleford, West Yorkshire, U.K.
Castleford, West Yorkshire, U.K.
Ancenis, France
Bologna, Italy

Unconsolidated Subsidiary Accounted for by the Equity Method
Location(thousands of the local currency)

Outside JapanBT Industries Group *3 (2 companies *5)

–

–

–

Affiliates Accounted for by the Equity Method
LocationJapan
ST Liquid Crystal Display Corp.
Aichi Corporation

Aichi
Aichi

Outside JapanBT Industries Group *3 (16 companies)–(thousands of the local currency)

EquityOwnership¥50,000,000¥8,542,545

50.0 %
34.0 %––

Capital*1 Taikoh Transportation Group comprises Taikoh Transportation Co., Ltd. (parent company) and its four subsidiaries. Taikoh Transportation Co., Ltd. isheadquartered in Aichi and capitalized at ¥83,985 thousand. Toyota Industries Corporation held 50.2% of the outstanding shares of Taikoh Transportation Co.,
Ltd. as of September 30, 2002.
*2 Toyoda International Sweden AB held 100.0% of the outstanding shares of BT Industries AB as of September 30, 2002.
*3 BT Industries Group comprises BT Industries AB (holding company headquartered in Mjölby, Sweden, capitalized at SEK560 million) and its 81 subsidiaries andaffiliates.
*4 Toyota Industries North America, Inc. is a holding company that exercises control over Toyota Industrial Equipment Mfg., Inc., Toyota Material Handling USA Inc.,ACTIS Manufacturing Ltd, LLC, Toyota-Lift of Los Angeles, Inc., Toyoda Textile Machinery, Inc. and Toyota Industries Personnel Service of America, Inc.
TAL Personnel Service, Inc. changed its name to Toyota Industries Personnel Service of America, Inc. in October 2002.
*5 BT Industries AB temporarily holds more than a 50% share of the capital of two subsidiaries.
Note: ¥–Japanese yen; SEK–Swedish krona; U.S.$–U.S. dollar; EUR–Euro; Rs–Indian rupee; NOK–Norwegian krone; DKK–Danish krone; GBP–British Pound25

INVESTOR INFORMATION(As of September 30, 2002)

Corporate Head OfficeTransfer Agent

TOYOTA INDUSTRIES CORPORATION
2-1, Toyoda-cho, Kariya-shi, Aichi-ken
448-8671, Japan
Telephone: +81-(0)566-22-2511
Facsimile: +81-(0)566-27-5650

UFJ Trust Bank Limited
1-4-3, Marunouchi, Chiyoda-ku, Tokyo-to
100-0005, Japan
Telephone: +81-(0)3-3287-2211

Major Shareholders
Date of Establishment% ofOwnership

November 18, 1926

Toyota Motor Corporation
24.82
DENSO Corporation
8.07
UFJ Bank Limited
5.03
Sumitomo Mitsui Banking Corporation
3.60
Nippon Life Insurance Company
3.52
UFJ Trust Bank Limited
2.98
Mitsui Sumitomo Insurance Co., Ltd.
2.53
Towa Real Estate Co, Ltd.
2.47
The Master Trust Bank of Japan, Ltd.
2.25
The Chuo Mitsui Trust and Banking Company, Limited 1.97

Common Stock
No par value
Authorized: 1,091,245,000 shares
Issued:313,324,451 shares

Stock Exchange Listings
Tokyo, Osaka and Nagoya(Ticker Code: 6201)

Number of Shareholders
18,589

Independent Accountants
ChuoAoyama Audit Corporation
3-28-12, Meieki, Nakamura-ku, Nagoya-shi,
Aichi-ken 450-8565, Japan

Common Stock Price Range (Tokyo Stock Exchange)

1st quarter2nd quarter3rd quarter
4th quarter

FY2003High
Low

FY2002High
Low

FY2001High
Low

FY2000High
Low

FY1999HighLow¥2,1652,005––¥2,770
2,620
2,165
2,210

¥2,435
2,580
2,305
2,575

¥2,350
2,170
2,250
2,320

¥2,455
2,455
2,130
2,195

¥1,862
1,770––¥2,355
1,845
1,766
1,823

¥1,950
1,980
1,922
2,100

¥2,050
1,761
1,880
1,870

¥2,170
2,005
1,880
1,941

Publications
Our Corporate Brochure and Environmental Report are available in both English and Japanese upon written request to the Public Affairs Department
at our Corporate Head Office.

Internet Home Page
Updated information is published regularly on our Web site. (http://www.toyota-industries.com/)

Further Information
For further information, please write to the Investor Relations Office at our Corporate Head Office.

2-1, Toyoda-cho, Kariya-shi, Aichi-ken 448-8671, Japan
Telephone: +81-(0)566-22-2511 Facsimile: +81-(0)566-27-5650
URL: http://www.toyota-industries.com/

This semiannual report is printed on recycled paper using
soy ink to minimize the impact on the environment.
Printed in Japan