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Toyota Industries in Focus

Passion for Globalizing—Materials Handling Equipment Segment—
Toyota Industries’ Materials Handling Equipment Segment, aworld leader in the production and sales of forklift trucks,
comprises TOYOTA Material Handling Company (“TMHC”) and
BT Industries AB (“BT Industries”). TMHC is the global leader incounterbalanced forklift trucks, whereas BT Industries is theworld’s leading supplier of warehouse trucks. Also included inthis segment is Aichi Corporation (“Aichi”), which held a market
share of 66% in Japan for aerial work platforms in fiscal 2004.
TMHC and BT Industries operate as parallel groups,
collaborating in such areas as sales, procurement and R&D, andoperating under a common global scheme as equal strategic
partners.
Competition in the forklift truck market is intensifying, marked
by cross-border consolidation and alliances. Against thisbackdrop, we are resolved to strengthen our position as a global
leader distinguished by our abilities to develop superior

TOYOTA Material Handling Company

Brand Portfolio of the Materials Handling
Equipment Segment
The Materials Handling Equipment Segment continues to provide
products under the TOYOTA and BT brands. The BT and
Raymond brands are well recognized in Europe and North
America, respectively, and Toyota Industries is keen to exploit
BT Industries’ brand assets to the fullest. While maintaining theirown brand names, TMHC and BT Industries cooperate closely tomaximize benefits of synergy on a global scale. Aichi, asubsidiary of Toyota Industries since May 2003 and a leading
manufacturer of special-purpose vehicles in Japan, will also
continue to maintain its own brand.

BT Industries Group

Japanese market

European market

Non-Japanese markets

North American market

Materials handling equipment produced by TMHC is sold inJapan under the brand name of TOYOTA L&F (Logistics
and Forklifts), which refers to materials handling systems
and industrial vehicles and equipment. Outside Japan, thesignature of TOYOTA INDUSTRIAL EQUIPMENT is used.

AICHI CORPORATION

16

technologies and provide optimum solutions to customers’materials handling needs.

ANNUAL REPORT 2004 — TOYOTA INDUSTRIES CORPORATIONBT Industries uses the brand names BT in Europe andother regions, and Raymond in North America.
BT Industries also uses the Cesab, Prime-Mover andLift-Rite brand names in certain markets.

Aichi uses the AICHI brand throughout the world.
Visit http://www.aichi-corp.jp/ for further
information on Aichi Corporation.

Gearing Up for Future Growth
TMHC was created as an in-house company in April 2001 after
Toyota Industries took over the industrial equipment sales andmarketing operations of Toyota Motor Corporation.
This consolidation positions materials handling equipment asa core business within the Toyota Group, and underlines Toyota
Industries’ status as one of the world’s leading comprehensive

manufacturers in the field. The integration of development andmanufacturing expertise with strong sales and marketing
capabilities makes for more flexible management, faster
decision-making and strengthened global competitiveness.
For more information on TMHC’s global sales network andproducts, please visit www.global-toyotaforklifts.com.

Toyota Industries in Focus

TOYOTA Material Handling Company

Operations in JapanTMHC Leads the Japanese Market
by Providing Optimum Solutions for Customers
Calendar year 2003 saw total demand in the domestic forklift
truck market increase by 3.9% over 2002, while TMHC increased
its domestic unit sales by 7.6%. TMHC embarked on sales
promotion activities that focused on optimized solutions formaterials handling problems and the cost-reduction needs of ourcustomers. These activities included the marketing ofenvironmentally sound products with excellent safety, handlingand operability, as represented by the GENEO Series (7-Seriesoutside Japan). TMHC also provided prompt and reliable services,
as well as a full-fledged fleet management program which
undertakes comprehensive management of materials handlingequipment from introduction to maintenance and makes
improvement suggestions, thus contributing to further cost
reduction.
In 2003, the GENEO-E (7FBE outside Japan) three-wheel
electric counterbalanced forklift truck and the GENEO-R (7FBR
outside Japan) reach truck achieved brisk sales with the benefit offavorable customer review.
For calendar year 2003,
TMHC achieved a recordhigh market share of 42.6%
in Japan, an increase of 1.4
percentage points over
2002, exceeding 40% for
the fifth consecutive year.
This marked the 38th
consecutive year that TMHC
was No. 1 in the Japanese
forklift truck industry.
As part of enhancing its
warehouse truck line, TMHC
introduces BT Industries’
products into the Japanese
CBT6
Compact tow tractor (sit-down type)market under the TOYOTA

4SDT15
Job Fighter wheel loader

L&F brand. One example is BT Industries’ very narrow aisle
trucks, marketed as the Rack Stocker MD and the Rack
Stocker MU in November 2003. TMHC aims to develop thewarehouse equipment market, still a small segment in Japan,
through the introduction of more BT Industries products as well
as vigorous sales and marketing activities.
TMHC developed the CBT Series of compact electric tow
tractors for transporting loads and marketed the product inJapan in November 2003. The CBT Series comprises threemodels: The two models with 4-ton towing capacity come as
either stand-up or sit-down types, and the model with 6-ton
towing capacity is available as a sit-down type. TMHC also
introduced the upgraded version of the Job Fighter wheel
loader into the Japanese market in March 2004. The new Job
Fighter is equipped with a new engine that boasts better fuelefficiency and cleaner exhaust emission, as well as asuspension seat and seat belt for greater safety and operability.

ANNUAL REPORT 2004 — TOYOTA INDUSTRIES CORPORATION

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Toyota Industries in Focus

TMHC anticipates the domestic forklift truck market will
improve slightly in 2004 due to a recovering Japanese economy.
In these circumstances, we will respond precisely to customer
needs, promote a fleet management program to major accounts
and offer materials handling solutions optimized for eachcustomer, thereby aiming at further expansion of sales andmarket share.
TMHC supplies TOYOTA-brand forklift trucks, materials
handling systems and other peripheral equipment through anestablished sales network of 41 dealers throughout Japan.

TMHC’s extensive product lineup in the Japanese market
TMHC responds precisely to customer needs with anextensive product lineup — from forklift trucks toautomated storage and retrieval systems — forwarehousing, storing and low-level or high-level order

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Order picking trucks

Racks

Counterbalanced forklift trucks

Walkie rider trucks

ANNUAL REPORT 2004 — TOYOTA INDUSTRIES CORPORATION

picking. Very narrow aisle trucks and other warehousetrucks supplied by BT Industries make TMHC’s productline even more comprehensive.

Automated storage andretrieval systems

Automatic guided vehicle systems

High-speed sorting equipment

Toyota Is the Leading Lift Truck Supplier in the U.S.
for Second Consecutive Year
Toyota Material Handling, U.S.A., Inc. (“TMHU,” the U.S. divisionof TMHC) entered 2004 poised to strengthen its lead in thematerials handling industry. Offering a full line of top-quality
products, TMHU was the No. 1 selling forklift truck supplier in
the U.S. for the second consecutive year, increasing sales incalendar year 2003 nearly 13%.
As part of a long-term growth strategy, TMHU continues tofocus on securing and maintaining large national accountcustomers. Currently, TMHU has major contracts with highprofile customers such as Bridgestone Americas and New
United Motor Manufacturing, Inc.

TMHU’s headquarters in Irvine, California

Headquartered in Irvine, California, TMHU markets its
products under the TOYOTA INDUSTRIAL EQUIPMENT brandthrough an elite network of dealers located throughout the U.S.
More than 99% of Toyota forklift trucks sold in the U.S. aremanufactured in North America. Toyota Industrial Equipment
Mfg., Inc. (“TIEM”), TMHC’s world-class manufacturing facility, islocated in Columbus, Indiana. This year, TIEM announced amajor expansion in order to accommodate TMHU’s recent
growth and enhance its training and sales facilities. Completionis scheduled for early 2005.

TIEM’s plant in Columbus, Indiana
In April 2004, TIEM achieved cumulative production of 200,000 forklift trucks sincecommencing operations.

Creating Long-Term Value
TMHU introduced a number of important new products in 2004,
all of which deliver productivity, energy efficiency andcost-of-ownership advantages. Several of these new forklift
trucks — a 4,500 lb. capacity electric pallet truck, a line of
7-Series reach trucks and a line of 7-Series electric stand-up
riders — reflect the progress of TMHU’s partnership with BT/
Raymond. TMHU also made improvements to current models in
its line of electric pallet trucks, and expanded its electric productline with new electric walkie straddle stacker forklift trucks
featuring adjustable baselegs.
Also in 2003, thecompany debuted newelectric sit-down tugger
models, the CBT4 and CBT6
Floor-Runners, and the
CBTY4 Stand-Up Tugger.
TMHU continues to leadthe materials handlingindustry in safety technology
with its exclusive System of
Active Stability (SAS) andActive Mast Control (AMC).
These dramaticadvancements help reduce
the risk of accidents andinjuries, and minimize thepotential for product andequipment damage, while
TMHU's new 7-Series electric reach trucks
maintaining higher levels of
are a reliable and cost-effective solution fora wide variety of applications.
productivity.

Toyota Industries in Focus

Operations in the United States

Premier Dealer Network
In order to strengthen its exceptional dealer network and focus
on its high level of customer support, TMHU has employed aphilosophy of consolidation. In 2002, there were 80 dealers and
183 dealership locations. Currently, TMHU has 71 dealers with a
total of 185 dealership locations.
TMHU considers its dealers to be partners in meetingcustomer needs, and provides extensive support to ensure
ultimate customer satisfaction. Such support includes
sophisticated online training resources, factory-trained
technicians, STARLIFT parts, Toyota Certified Used forklift trucks,
and flexible leasing and finance packages through Toyota
Financial Services.
This support, combined with 37 years of experience in the
U.S., continued innovation and superior engineering, means that
TMHU’s complete line of forklift trucks can be tailored for any
application. For more information or to locate the nearest dealer,call 800-226-0009 or visit www.toyotaforklift.com.

ANNUAL REPORT 2004 — TOYOTA INDUSTRIES CORPORATION

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Toyota Industries in Focus

Operations in Europe

TIEE Increases Market Share Supported by Product Launches
and Customer Commitment
Toyota Industrial Equipment Europe (“TIEE”), the European
division of TMHC, offers a comprehensive line of forklift trucks
and warehouse equipment for use in various materials handlingsituations.
For TIEE, 2003 was marked by a number of significant
developments. In particular, TIEE continued to expand its rangeof warehouse equipment and forklift trucks, and further
strengthened its regional distribution network.

TIEE’s European sales & marketing office in Brussels, Belgium

European Customer Commitment

Operational Results Outperform the Market

Offering a full range of top-quality products, TIEE is supported bya distributor network in 22 European countries. It has earned theloyalty of its customers through an ongoing commitment to aftersales services and customer support. Most TIEE forklift trucks
sold in Europe are assembled by Toyota Industrial Equipment, S.A.
at its state-of-the-art facility in France. Under the theme “Made inEurope For Europe,” TIEE responds to local market needs.
TIEE’s key aims for 2004 are to implement after-sales training
courses throughout its distributor and dealer network, shorten
lead-times, reduce costs and increase overall customer
satisfaction levels. The ultimate goal is to provide European
customers with optimum materials handling solutions, and TIEE
is well on its way to achieving this.
For more information on products and services, visit
www.tiee.com.

Difficult market conditions made 2003 a challenging period.
Toward the end of the year, the European market showed aslight sign of recovery and grew 3% overall compared with theprevious 12 months. TIEE reported very good results, achieving
an increase in sales of almost 18% compared with 2002. This
was the third consecutive year that TIEE significantly
outperformed the market.
The European market for counterbalanced forklift trucks
continued its steep decline as a result of the general economic
slowdown. Sales in this sector decreased almost 3% in total.
TIEE, however, increased its share of this market. On the other
hand, sales of warehouse equipment recorded an increase of
8%. TIEE substantially outperformed the market, increasing sales

Toyota Industrial Equipment, S.A., our forklift truck production base in France,
manufactures approximately 13,000 forklift trucks annually for the European market.

During the year, TIEE launched several innovative new
products that complement TIEE’s existing line of industrial
equipment. An electric range of four low-level order pickers
equipped with ergonomic enhancing features will improve both
operator comfort and performance for first- and second-level
order picking. The new electric tow tractors provide an ideal
solution for the continuous movement of loads over longer
distances in factories and warehouses. Also, TIEE introduced
stainless steel versions of its Generation 7 powered pallet andstacker trucks. These INOX models are designed for specialized
applications in strictly controlled hygienic environments, such as
food processing facilities, abattoirs and pharmaceutical factories.

20of warehouseequipment 40%.
Looking ahead,the materials
handling market inEurope may again
see a slight recovery in
2004: In the first quarter, themarket performed better than in
the corresponding period of 2003. It
is expected that the slowly improving
economic conditions in Europe will
have a moderate but positive impact
on the materials handling market.
Throughout 2004, TIEE will
LOP10CF
continue to strengthen its position
Low-Level Order Picker
with Elevating Cabin
within the European market by further
extending its sales, distribution andafter-sales network to ensure quick and effective responses tocustomer demands.

ANNUAL REPORT 2004 — TOYOTA INDUSTRIES CORPORATIONOperations in Brazil and Argentina

In 2003, TMHC completed construction of a new forklift truck
assembly plant within the premises of Toyota Industry (Kunshan)Co., Ltd. (“TIK”), a subsidiary of Toyota Industries engaged in the
production of foundry parts in Kunshan, Jiangsu Province. TIK
began production of forklift trucks in April 2003, and in calendar
year 2003 assembled more than 300 units of the 1-3 ton internal
combustion forklift truck. In the same period, including exports
from its production facilities in Japan, TMHC sold roughly 800
units in China. Closely monitoring the trend in demand, TIK will
gradually increase unit production as well as the number ofmodels.
In May 2003, we established Toyota Material Handling(Shanghai) Co., Ltd. (“TMHS”) jointly with Toyota Tsusho
Corporation as a distributor of forklift trucks in China. The newcompany, which started operations in June 2003, will take theleading role in augmenting a dealer network and forging a stronger
sales and after-sales service structure in the country.
Sales in the forklift truck market in China in calendar year 2003
were approximately 44,000 units. In 2005, TMHC expects sales togrow to 65,000 units. In response to growth in demand, TMHC
will accordingly increase local production at TIK and provide quick
and reliable after-sales services at TMHS with a view to further
strengthening competitiveness in the growing Chinese market.

In January 2004, Toyota Industries established Toyota Industries
Mercosur Ltda. (“TIM”) in Brazil as a new distributor with the aimof enhancing sales of forklift trucks and other materials handlingequipment in Brazil and Argentina, the two largest markets inSouth America. TIM began operations in April 2004. Prior to theestablishment of TIM, materials handling equipment sales in
Brazil and Argentina were carried out by TMC subsidiaries
Toyota do Brasil Ltda. (“TDB”) and Toyota Argentina S.A.
(“TASA”), respectively. TIM took over and consolidated thematerials handling equipment operations of TDB and TASA,
enabling quicker decision-making and flexible business
management in both markets.
By building a strong sales structure centered on TIM, Toyota
Industries aims to raise its competitiveness and establish a solid
position in these markets.

Toyota Industries in Focus

Operations in China

Guests and Brazil-based staff gather for a photo opportunity after
TIM’s opening ceremony in Brazil.

TIK, our forklift truck production base in China

Operations in Australia
In June 2003, Toyota Industries established Toyota Industries
Corporation Australia Pty Limited (“TICA”) as a new distributor
with a view to expanding sales of forklift trucks and othermaterials handling equipment. TICA started operations on July 1,
2003 after acquiring the materials handling equipment sales
operations of Toyota Motor Corporation Australia Ltd., a TMC
subsidiary that handled sales of these products in Australia.

Guests and Argentina-based staff gather for a photo opportunity
after TIM’s opening ceremony in Argentina.

Opening ceremony at TICA

ANNUAL REPORT 2004 — TOYOTA INDUSTRIES CORPORATION

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Toyota Industries in Focus

BT Industries GroupIn June 2000, BT Industries, a Swedish warehouse truck manufacturer, became
an important member of the Toyota Industries Group. BT Industries plays a crucialrole together with TMHC in the field of materials handling equipment.
Note: The fiscal year of BT Industries runs from January 1 to December 31.

Statement by the President of BT Industries
BT Industries is the world’s leading manufacturer of electric warehouse trucks. We
have achieved this position through a long-term, focused effort at every level of the
BT Group. Our vision is to have the industry’s highest quality, strong brands and a
product range second to none.

Per Zaunders
President and CEO

Part of our business concept is to anticipate customers’ needs
for efficient materials handling and provide customized solutions.
This means we have to be constantly attentive to whatcustomers want and interpret their needs, so that we can quickly
translate their demands into a range of products and services.
Only by satisfying our customers can we remain a successfulcompany in the long term.
Changing customer demands also create new opportunities
for us to exploit. As a whole, this places great demands on all
employees of BT Industries, regardless of the markets andfunctions in which they work. It is their competence that forms
the backbone of BT’s global organization. The BT Group is
distinguished by a decentralized organization with delegatedresponsibility and confidence in individuals.
In today’s rapidly changing world, you can never rest on yourlaurels. The ability to continuously change for the better is what
creates competitive companies. This means that we mustquestion the ways we think and work and constantly strive toimprove. An important part of this effort is maintaining highquality in everything we do — not only our products and services
but also how we work with each other within the BT Group.

Faster Product Development
In a marketplace with growing competition and ever-fasterdevelopment, high demands are placed on the BT Group’s ability
to continuously develop new, competitive products and services.
We maintain a long-term approach to product development andquality improvement. We are already on the cutting edge in termsof such important aspects as performance, ergonomics andsafety. But there is more we can do. A key to achieving faster,
more cost-efficient product development is shared use ofcomponents and modularly designed systems and platforms. We

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ANNUAL REPORT 2004 — TOYOTA INDUSTRIES CORPORATION

are also working with clear objectives to renew our productrange.
The cooperation between our units in North America andEurope — and also with our owner, Toyota Industries
Corporation — has intensified in the last year. We have a lot tolearn from each other. Methods and processes that weredeveloped in one part of the BT Group can also be used in otherparts; there is no reason to reinvent the wheel. Even though wehave only taken the first steps in this respect, it is obvious thatthe rate of product development has improved. Investments in
product development are investments in the future. Together with
our size, established position and customer focus, they will help
to strengthen the BT Group competitively.
Naturally, there are several areas aside from productdevelopment where opportunities for synergies exist within the
BT Group and between the BT Group and Toyota Industries,
such as economies of scale in production, product andcomponent supply, and purchasing. We are cooperating moreclosely to identify the best methods and processes to benefit all
the parties concerned, while at the same time respecting andhaving patience for the time it takes to achieve synergy gains. Bybuilding long-term relationships, we create opportunities to utilize
each other’s strengths and competencies in the best way
possible. A good example of successful cooperation is thetrainee exchange we have established. Young employees at BT
Industries are given the opportunity to work at Toyota Industries
in Japan for a period of time, in the same way that Japanesetrainees can work in the BT Group in England, Sweden or the
U.S., for example. In this way, we increase understanding ofeach other’s cultures and at the same time encourage an
exchange of knowledge and experience.

Our core business is electric trucks. In the warehouse truck
segment, we are the world leader. Our product range also
includes counterbalanced forklift trucks, primarily electricpowered. Together with TMHC, which is the world’s largest
manufacturer of counterbalanced forklift trucks, we are theleader in the overall truck market.
Our approach is to utilize two distribution channels — BT
Industries and TMHC — and to continue working with two
separate brands. This is expected to achieve the greatest benefit
for BT Industries and Toyota Industries as a whole, since BT
Industries’ focus is on customers that primarily demand
warehouse trucks, while TMHC’s customers consist largely ofcompanies in industries where the emphasis is on
counterbalanced forklift trucks.
At BT Industries, we utilize two main brands: Raymond in
North America and BT in the rest of the world. We are a global
player with approximately 20% of the world market for
warehouse trucks, and we have a competitive advantage since
we are the only major truck manufacturer that can supply
products that meet both European and U.S. standards.

One Group – Two Strong Brands

BT Industries uses the BT brand in Europe and the rest of the world
with the exception of North America. The Raymond brand is usedmainly in North America.

We are seeing a clear trend in the market in that customers
want to work with a single supplier for all their truck needs. The
BT Group has the product and service range, the geographic
coverage and the financial resources necessary to be an
attractive partner to customers with high demand for efficientmaterials handling. We can provide complete materials handlingsolutions — no matter where in the world the customers happen
to be. The reliability of our turn-key offerings is what sets
BT Industries apart.
We have also made a name for ourselves by the fact that
service has long been an integral part of our core business. It isthrough our day-to-day service work that we strengthen therelationship with customers and together with them build longterm confidence in each other.

BT Industries’ Worldwide Manufacturing Bases

Toyota Industries in Focus

Market Leader

BT Industries presently operates seven manufacturing bases in four countries:
two in Sweden, two in the U.S., two in Canada and one in Italy. Products made atthese bases are sold worldwide through BT’s own sales and service organizations
and some 450 distributors and dealers.

weak development in recent years. Use of warehouse trucks
generally follows a society’s standard of living. A higher
consumption level leads to a greater range of goods, which inturn necessitates more transports and more goods handling. The
manufacturing industry is also using warehouse trucks to a
growing extent as many large companies outsource more andmore of their manufacturing to subcontractors. This is raising thevolume of components being transported. In addition, goods
flows are speeding up. Goods and components have to be in theright place in the right quantity at the right time. The faster this isdone, the more goods handling is needed.
Ergonomics and safety are other important driving forces
behind growth. Trucks should do the heavy work, not people.
The global market for trucks is overwhelmingly concentrated
in Western Europe, North America and Japan, but with rising
standards of living in other regions there are several interesting
growth markets as well. In mature markets in the industrialized
world, the historic growth rate for electric warehouse trucks has
averaged 6 - 7% a year. Markets in Central and Eastern Europe,
Asia and Latin America have greater growth potential as a resultof their fast-growing standards of living and, consequently,
consumption patterns similar to those of Western Europe andNorth America.

High Activity in BT Industries
The year 2003 proved to be a long wait for an economic
recovery that never really took off. However, BT Industries
continued to develop well, with a high level of customer activity,
positive energy in change and improvement projects, and stableprofitability, despite demand being relatively weak. After a long
string of years with good profitability, we are in a position ofstrength from which we can grow once demand turns upwardagain. With our broad customer base, strong product range,
efficient production facilities and focus on constant improvement,
I am convinced that we will not only defend our market sharesand profitability but also succeed in increasing them.

Long-Term Growth Market
The industrial truck market, especially the warehouse truck
segment, is experiencing long-term growth despite relatively

Per Zaunders
President and CEO

ANNUAL REPORT 2004 — TOYOTA INDUSTRIES CORPORATION

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