Toyota Industries Report

2015
Year ended March 31, 2015

Contents..............................................Inside cover
Editorial Policy /Cautionary Statement.......................1
Message from the Chairman
and President....................................2–3
Corporate Philosophy...........................4–5
Outline of Businesses...........................6–11
Financial Highlights...............................12
Top Interview........................................13–19

Corporate Governance.........................20–25
Corporate Governance Structure......20–21
Internal Control System.....................21
Compliance.......................................21–23
Management ofConfidential Information.................24

Financial Section / Corporate Information
Toyota Industries posted record
highs in net sales, operating
income, ordinary income andnet income in fiscal 2015.

1 Our Efforts toward the Creation ofConsolidated Statements of
Changes in Net Assets............................................82–83
Consolidated Statements of Cash Flows.....................84

Significantly Enhanced Environmental
Performance to Customers around
the World............................................ 30–34

Corporate Information.....................................................85–89
Board of Directors, Audit & Supervisory Board
Members and Managing Officers.............................85
Major Consolidated Subsidiaries.................................86–87

Business Activities

Major Production Bases..............................................88
Investor Information.....................................................89

Materials Handling Equipment / Logistics.......................36–43
Materials Handling Equipment.....................................36–41
Logistics.....................................................................42–43
Automobile.....................................................................44–49
Vehicle........................................................................44–45
Engine.........................................................................45–46
Car Air-Conditioning Compressor................................46–48
Car Electronics............................................................48–49
Textile Machinery............................................................50

Relationship with Stakeholders
Toyota Industries aims for
growth in harmony with society
through its relationships withvarious stakeholders, including
customers and business
partners.

Consolidated Balance Sheets.....................................78–79
Consolidated Statements ofComprehensive Income...........................................81

Special Features
a Hydrogen-Based Society................. 26–29

Contents

Consolidated Eleven-Year Summary............................76–77
Consolidated Statements of Income............................80

Risk Management.............................24–25

2 Offering New Clean Diesel Engines with

Based on quality first, the Toyota
Industries Group strives to offer
products and services that meetcustomer expectations.

Financial Section............................................................76–84

Relationship with Our Customers....................................52–53
Relationship with Our Business Partners.........................54
Relationship with Our Shareholders and Investors..........55
Relationship with Our Associates....................................56–58
Relationship with Our Local Communities.......................59–60

Editorial policy		In aiming to realize a deeper understanding of the Toyota Industries Group among a broad spectrum of
stakeholders, the Annual Report and Social and Environmental Report have been combined into the Toyota
Industries Report from the fiscal year ended March 31, 2008.
			 In addition to the Toyota Industries Group’s management policies, the report provides easy-to-understandinformation regarding its business, social and environmental activities over the past year as well as its future
direction.

Period covered by the report		This report focuses on activities carried out in fiscal 2015 (April 1, 2014 to March 31, 2015), but also includes
some information outside this period.

Organizations covered in the report		Toyota Industries Corporation and its consolidated subsidiaries

Reference guidelines		l Global Reporting Initiative (GRI) Sustainability Reporting Guidelines Version 3.1
		
l ISO 26000
		
l Japan’s Ministry of the Environment Environmental Accounting Guidelines (2005 Version)		l Japan’s Ministry of the Environment Environmental Reporting Guidelines (2012 Version)

Cautionary Statement with Respect to Forward-Looking Statements

Environmental Initiatives
Globally carrying out activities
based on the Fifth Environmental
Action Plan, Toyota Industries is
steadily achieving progress for
all action items.

Vision for Environmental Activities...................................62
Structure to Implement Environmental Management.......63
Fifth Environmental Action Plan.......................................64–65
Establishing a Low-Carbon Emission Society.................66–67
Establishing a Recycling-Based Society..........................68–69
Reducing Environmental Risk andEstablishing a Society in Harmony with Nature............70–71[Cover Photo]
New GENEO
internal-combustion lift truck

Environmental Management...........................................72–73
Environmental Impact Flow andEnvironmental Accounting...........................................74

This report contains projections and other forward-looking statements that involve risks and uncertainties. The use of the words “expect,”“anticipate,” “estimate,” “forecast,” “plan” and similar expressions is intended to identify such forward-looking statements. Projections andforward-looking statements are based on the current expectations and estimates of the Toyota Industries Group regarding its plans, outlook,strategies and results for the future. All such projections and forward-looking statements are based on management’s assumptions and beliefs
derived from the information available at the time of producing this report and are not guarantees of future performance. Toyota Industries
undertakes no obligation to publicly update or revise any forward-looking statements in this report, whether as a result of new information,
future events or otherwise. Therefore, it is advised that you should not rely solely upon these projections and forward-looking statements inmaking your investment decisions. You should also be aware that certain risks and uncertainties could cause the actual results of Toyota
Industries 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: (1) reliance on a small number of customers, (2) product development capabilities, (3) intellectual property
rights, (4) product defects, (5) price competition, (6) reliance on suppliers of raw materials and components, (7) environmental regulations,(8) success or failure of strategic alliances with other companies, (9) exchange rate fluctuations, (10) share price fluctuations, (11) effects ofdisasters, power blackouts and other incidents, (12) latent risks associated with international activities and (13) retirement benefit liabilities.
The fiscal year ended March 31, 2015 is referred to as fiscal 2015 and other fiscal years are referred to in a corresponding manner.

1Message from the Chairman and President

2

Toyota Industries Report 2015

Tetsuro Toyoda

Akira Onishi

ChairmanPresident

We sincerely appreciate your support of Toyota Industries
Corporation and the Toyota Industries Group.
Looking at the overall economic conditions during fiscal
2015, ended March 31, 2015, although the U.S. economy
remained solid, the Chinese economy recorded slower
growth. As a result, the global economy registered a mild
recovery overall. The Japanese economy decelerated as theconsumption tax hike pushed down consumer spending.
Under these business conditions, the Toyota Industries
Group focused on its quality first approach to earn the trustof customers and worked to expand sales by appropriately
responding to respective market trends. As a result of thesemeasures, Toyota Industries achieved record highs inconsolidated net sales, operating income, ordinary income
and net income.
Regarding the future outlook, the recovery in the world
economy is expected to sustain momentum while in Japan
consumer spending is anticipated to recover on the back ofa rise in wages. Nevertheless, the business environment
remains clouded by a host of uncertainties, including
Japan’s overdependence on the U.S. economy, a further
deceleration of the Chinese economy, an unstable situationin the Middle East and a deflationary trend in Europe.
Amid these circumstances, the Toyota Industries Groupis building a stronger business foundation and addressing
key management issues by leveraging the Group’s
comprehensive strengths to further raise corporate value.
As immediate tasks, we will maintain and improve our
muscular business structure to respond flexibly to rapidchanges in the business environment. Specifically, we willcomprehensively take into account quality and costs fromthe design stage, reduce lead times from development tosales and undertake cost improvement activities.
Additionally, we will push ahead with the development of
new technologies unmatched by competitors around theworld and plan and develop appealing products tailored tothe characteristics and needs of customers in each market.
Moreover, we will work to build global production and sales
structures and expand our value chain to provide a wide
range of services.
Over the medium to long term, based on our quality first
approach, we regard our top priority tasks as responding toenvironmental and safety issues and enhancing global
competitiveness. In doing so, we will support industries andsocial foundations around the world by continuously
supplying products and services that anticipate customers’

needs in order to contribute to a comfortable society andenriched lifestyles.
As articulated in Vision 2020, we will develop
environment-friendly, energy-saving products focusing on
the keywords of the 3Es (Energy, Environmental protection
and Ecological thinking), while integrating functions andservices demanded by customers (Value Chain) andproviding these worldwide (World Market). Through thesemeasures, we aim for growth in three business units, namely
the “solution” business unit consisting of materials handlingequipment, logistics and textile machinery; the “keycomponents” business unit encompassing car airconditioning compressors and car electronics; and the“mobility” business unit covering vehicles and engines. The
Toyota Industries Group aims to work in unison to realize
Vision 2020 based on the Medium-Term Management Plan,
which lays out specific measures in each business unit up to
fiscal 2016.
To support our global consolidated management, we willraise workplace capabilities, diversify the utilization of
personnel and nurture human resources capable of playing
active roles on the global stage. In addition, to counter a risein risks resulting from an expansion in business activities, we
aim to mitigate such risks and make a swift and accurate
response when such risks materialize.
Besides creating a workplace that places the utmost
priority on safety and thoroughly carrying out compliance,
which includes adhering to laws and regulations, we will
actively participate in social contribution activities. Throughthese efforts, we aim to win the trust of society and grow inharmony with society.
In closing, we ask for your continued understanding andsupport.
		

August 2015

Tetsuro Toyoda
Chairman

Akira Onishi
President

3Corporate Philosophy of Toyota Industries Corporation

Aiming for the Realization of a Comfortable

Society and Enriched Lifestyles

The spirit of founder Sakichi Toyoda has been encapsulated in the Toyoda Precepts, which serve as Toyota Industries’
corporate creed. Our Basic Philosophy carries on that spirit and is stipulated as basic management policies.
Based on this Basic Philosophy, we constantly strive for the sustainable growth of our businesses by contributing to
the realization of a comfortable society and enriched lifestyles. While fulfilling our social responsibilities throughbusiness activities, we are making proactive efforts to serve as a good corporate citizen in non-business areas as well.

Toyoda Precepts
Carrying out the spirit of founder Sakichi Toyoda,• Always be faithful to your duties, thereby contributing to theCompany and to the overall good.
• Always be studious and creative, striving to stay ahead of
the times.
• Always be practical and avoid frivolousness.
• Always strive to build a homelike atmosphere at work that iswarm and friendly.
• Always have respect for God, and remember to be gratefulat all times.

Basic Philosophy

Toyota Industries’ CSR Activities[Respect for the Law]
Toyota Industries is determined to comply with the letter and spirit of
the law, in Japan and overseas, and to be fair and transparent in all its
dealings.

Contribution asa corporate citizen

Contribution in
non-business areas

Toyota Industries is respectful of the people, culture, and traditions ofeach region and country in which it operates. It also works to promoteeconomic growth and prosperity in those regions and countries.

Ethical responsibility /ComplianceFairness, transparency,
respect for human rights
and cultures, environmental
conservation[Respect for the Natural Environment]

Economic responsibility(business responsibility)

Continuous provision of
products and services
that contribute to society[Respect for Others]

Through its corporate activities, Toyota Industries works to contributeto regional living conditions and social prosperity and also strives tooffer products and services that are clean, safe, and of high quality.

Foundation ofbusiness activities

Contributions throughbusiness activities

Corporate social
responsibility[Respect for Customers]
Toyota Industries conducts intensive product research and forwardlooking development activities to create new value for its customers.

Society (company’s raison d’etre)[Respect for Employees]

社祖4

Toyota Industries Report 2015

豊田佐吉

Toyota Industries nurtures the inventiveness and other abilities of its
employees. It seeks to create a climate of cooperation, so that
employees and the Company can realize their full potential.

5Materials Handling Equipment

Outline of Businesses

Materials Handling Equipment / Logistics

Logistics■ Net Sales■ Operating Income(¥ Billion)(¥ Billion)

1,200

80

1,000

70
60

800

The smooth flow of goods, money and information links the world and enriches the lives of people and society.
Toyota Industries meets diverse customer needs in logistics by providing a diverse range of materials handlingequipment such as lift trucks and offering advanced and highly efficient logistics services. Through thesebusinesses, Toyota Industries helps bring smiles to the faces of people the world over.

■ Percentage of Net Sales(FY2015)

50

600

40

400

30

42.7%

20

200

10

0
(FY)

13

14

15

0

(FY)

13

14

15

4.5%

The Materials Handling Equipment Segment develops, produces, sells and provides
services for a broad range of products, from industrial vehicles centered around afull lineup of lift trucks (0.5- to 43-ton capacities) to materials handling systems.
Lift trucks, which capture the top global market share*, are delivered tocustomers around the world under the TOYOTA, BT, RAYMOND and CESAB
brands. Toyota Industries also strives to provide finely tuned after-sales services
so that customers can always use our products in the best possible condition.
While raising the level of after-sales services for developed countries, we arereinforcing our sales and service networks as well as enhancing service training for
emerging countries.
* Survey by Toyota Industries Corporation

Toyota Industries is building its own unique business model that pursues optimalflows of goods, money and information from producers to consumers, thereby
contributing to the overall optimization of customers’ logistics. The Logistics
Segment is composed of three business pillars: planning, design and operation of
distribution centers to help customers reduce their logistics costs; landtransportation services that primarily focus on cargo deliveries via trucks; and highvalue-added services such as cash collection and delivery and cash proceeds
management services and data storage and management services.

GENEO-B
electric lift truck

Land transportation services

Internal-combustion
lift truck

6

Toyota Industries Report 2015

Reach truck

Low lift truck

Aerial work platform

Automated storage andretrieval system

Simple AGV(automatic guided vehicle)

Warehouse logistics

Cash collection and delivery andcash proceeds management services

Data storage, management,collection and delivery services7Outline of Businesses

Automobile■ Net Sales■ Operating Income(¥ Billion)(¥ Billion)

1,200

40

■ Percentage of Net Sales(FY2015)

1,000
30

800

Get behind the wheel with a solid, reassuring feel and enjoy comfortable driving. Besides vehicle assembly,
Toyota Industries produces various automobile-related components such as engines and compressors,
the latter of which comprises the heart of car air conditioners, as well as car electronics.
We are there for you to create a comfortable vehicle interior.

600

48.5%

20

400
10

200
0
(FY)

13

14

15

0
(FY)

13

14

15

From vehicle assembly to parts production, the Automobile Segment engages in a wide range of car-related businesses, leveraging synergies
among its business divisions in development and production.
VehicleWith its strengths as an industry leader in safety, the environment, quality, cost and delivery, the Vehicle
Business produces compact to midsize automobiles.
EngineIn addition to diesel engines produced under a comprehensive structure ranging from planning anddevelopment to production, we also produce gasoline engines.
Car Air-Conditioning Compressor Toyota Industries’ car air-conditioning compressors are highly acclaimed in terms of their reliability at highoperating speeds and quiet operation in addition to such excellent environmental performance features ascompactness, weight reduction and fuel efficiency. The Car Air-Conditioning Compressor Business
captures the world-leading market share in unit sales*.
Car Electronics
The Car Electronics Business develops and produces electronics products
primarily for electric-powered vehicles such as hybrid vehicles.
* Survey by Toyota Industries Corporation

RAV4

Vitz (Yaris outside Japan)

8

Toyota Industries Report 2015

Diesel engine

Gasoline engine

Electric compressor

Variable-displacement
type compressor

Fixed-displacement
type compressor

Oxygen-supplying
air compressor forfuel cell vehicles

Hydrogen circulation
pump forfuel cell vehicles

DC-DC converter

9Outline of Businesses

Textile Machinery■ Net Sales■ Operating Income(¥ Billion)(¥ Billion)

80

6

60

A soft texture caressing your skin and gently enveloping your body. Toyota Industries produces spinningmachinery that spins high-quality yarns and high-speed, energy-saving weaving machinery that produces
fabrics. We deliver textile machinery to customers around the world that incorporates advanced
technologies and is imbued with our dedication to quality, bringing smiles to everyone’s daily lives.

■ Percentage of Net Sales(FY2015)

3.1%

4

40
2

20
0
(FY)

13

14

15

0
(FY)

13

14

15

The Textile Machinery Division, our original business, began with the invention of the automatic loom by founder
Sakichi Toyoda. Presently, we undertake fully integrated operations from development and production to sales andafter-sales services for spinning machines that spin twisted fiber bundles into yarn and weaving machines that weave
spun yarn into fabrics. Our textile machinery is supplied to markets worldwide.
Thanks to superb reliability and high productivity, our air-jet looms have won extensive acclaim from customers
around the globe, capturing the world-leading market share in terms of unit sales*.
* Survey by Toyota Industries Corporation

JAT810 air-jet loom

Ring spinning frame

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Toyota Industries Report 2015

Roving frame

Comber

Cotton classing instrument

Yarn testing instrument

11

Financial Highlights

Top Interview

Toyota Industries Corporation
Years ended March 31

Millions of yen
2015vs 2014% change

2014

2013

2012

2011

For the Year
2,166,661

7.9%

2,007,856

1,615,244

1,543,352

1,479,839

Operating income

117,574

9.2

107,691

77,09870,092

68,798

Ordinary income

170,82723.7

138,133

86,83680,86673,911

Net income

115,263

25.7

91,705

53,11958,59447,205

Research and development expenses

47,785

3.1

46,32639,05732,07027,788Cash dividends per share (yen)110.00

29.4

85.00

55.00

50.00

50.00

Net sales

Akira Onishi

At Year-End
Total assets

4,650,896

22.4%

3,799,010

3,243,779

2,656,984

2,481,452

Total net assets

2,425,929

32.6

1,829,326

1,524,933

1,197,841

1,075,939

52,523

6.5

49,33347,41243,51640,825

Number of employees■ Net Sales(¥ Billion)(¥ Billion)

2,500
2,000

120

120

100

100

80

80

60

60

40

40

20

20

1,500
1,000
500

(FY) 11

12

13

14

15

0

(FY) 11

12

13

14

0

15

■ Total Net Assets■ Total Assets(FY) 11

12

13

14

15

14

15

■ Cash Dividends per Share(¥ Billion)
2,500

(¥)

5,000
4,000

2,000

100

3,000

1,500

2,000

1,000

1,000

500

(¥ Billion)

President■ Net Income■ Operating Income(¥ Billion)0

Accelerating Our Transformation with
the Aim of Realizing a Comfortable
Society and Enriched Lifestyles

120

80
60

0

12

(FY) 11

Toyota Industries Report 2015

12

13

14

15

0

40
20

(FY) 11

12

13

14

15

0

(FY) 11

12

13

13

Top Interview

Top Interview

QF irst of all, could you provide an overview of Toyota Industries’
business results in fiscal 2015?

During fiscal 2015, although the Chinese economy decelerated, the world economy achieved a moderate
recovery on the whole underpinned by solid growth in the U.S. economy. Under these economic conditions,in addition to ongoing activities to strengthen our foundation, Toyota Industries accelerated initiatives for
attaining growth during the third year of its Medium-Term Management Plan.
In the core Materials Handling Equipment Business, we benefited from favorable markets in suchregions as Japan, North America, Europe and China and posted growth in unit sales by introducing new
products with enhanced environmental performance and undertaking sales expansion activities utilizing ourglobal sales network.
Additionally, Aichi Corporation, a top manufacturer of aerial work platforms, and Cascade Corporation, aU.S.-based manufacturer of lift truck attachments, also recorded solid business results.
Turning to automobile-related businesses, the Vehicle Business maintained strong sales of the RAV4,
but overall unit sales declined from the previous fiscal year. The Engine Business posted a decrease in unit
sales mainly of KD diesel engines and AR gasoline engines. Alternatively, the Car Air-Conditioning Compressor
Business posted growth in sales in North America and China, achieving an all-time high in unit sales. The
Car Electronics Business attained an increase in sales, mainly to Toyota Motor Corporation (TMC).
The Logistics Business recorded growth in its business results, driven by increases in logistics
services and land transportation services for automotive-related parts.
The Textile Machinery Business posted lower sales of its mainstay air-jet looms amid continued
stagnant demand in China and other markets. Nevertheless, this business achieved higher sales in the fieldof yarn quality measurement instruments, which have been a new business domain since 2012.
As a result of these developments, in fiscal 2015 Toyota Industries posted net sales of ¥2,166.6 billion andoperating income of ¥117.5 billion, both representing record highs. Taking into consideration an array offactors such as our business results, future demand for funds and the payout ratio, Toyota Industries raised
cash dividends per share by ¥25 from the previous fiscal year to ¥110.

Q

Could you explain the future direction of your business operations?

Basically, we will continue executing the same business policies implemented to realize Vision 2020.
However, our business activities now span the entire globe, including emerging countries, while ourbusiness domains are also expanding. With this in mind, we believe that Toyota Industries must takeadditional steps to prepare for various risks and further solidify our foundation. On this basis, we plan toaccelerate the development of various themes we have implemented for future growth.

Among these themes, we have positioned human resources development andstrengthening monozukuri (manufacturing) as crucial elements of efforts to further
solidify our foundation.
n Human Resources Development
We believe the key word in human resources development is “global.” Presently, more than half theemployees in the Toyota Industries Group are non-Japanese, and local employees serve as top
management at more than 80% of the Group’s 176 overseas consolidated subsidiaries.
As we operate in various countries with different cultures and values, it is absolutely essential that all
employees share a source of inspiration as we move in the same direction on a global scale. Acting on thisbelief, Toyota Industries provides various opportunities to promote a global sharing of the spirit of “respect

14

Toyota Industries Report 2015

for humanity” and “challenge”
advocated by the Toyoda Precepts,
which embody the spirit of founder
Sakichi Toyoda.
As our business activities become
increasingly globalized, the diversity of
our employees continues to advance.
As such, we believe diversity is not
something to which we must respond,
but something we should naturally
embrace and fully utilize.
Besides the number of employees,
more than half of the Toyota Industries
Group’s sales are also generated
outside Japan. As a global company,
we remain committed to respecting
diversity, leveraging this as our strength
for growth while linking diversity toinitiatives for attaining Vision 2020.

Global human resources conferencen Strengthening Monozukuri (Manufacturing)
As a manufacturing-based company, Toyota Industries will further strengthen its manufacturing capabilities
in Japan and push forward with initiatives to share them globally.
We will not only work to develop products based on the 3Es (Energy, Environmental protection and
Ecological thinking) and raise manufacturing quality and productivity but also promote the development of
new production engineering technologies and methods with the overarching aim of differentiating ourselvesfrom competitors in terms of manufacturing.
As part of these efforts, our plants in Japan will strengthen our foundation as mother plants by undertaking
a variety of key tasks, including developing human resources, passing on various skills and augmenting the
Toyota Production System (TPS) and overall production engineering. Using these areas as our basis, we will
make Company-wide efforts to build a structure that can support our plants outside Japan while at thesame time working to raise quality and productivity on a global basis. Ultimately, our plan is for eachproduction base to become autonomous, to mutually learn the various good qualities from each other acrossbusiness divisions and national boundaries and to maximize synergies among these production bases.
As a specific example, in the Car Air-Conditioning Compressor Business a mother plant in Japan is
accepting key human resources from production bases outside Japan, continuously providing them witheducation that not only covers proprietary skills but also places emphasis on instilling the thinking and spiritof manufacturing. Employees who learn at the mother plant then steadily spread the knowledge and skills
they acquired in Japan in their own countries.
Through this process, we aim to raise thelevel of manufacturing at each production
base around the world.
Also, in the Materials Handling Equipment
Business, when a new plant in Brazil wasestablished and began operations in 2013, a
U.S.-based production team that previously
learned at another mother plant in Japan inturn played the role of mother plant andprovided essential support for the startup.
Going forward, our policy is to have
Teaching an employee from outside Japan
mother plants in Japan continue functioning

15

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as the core of each business while promoting initiatives that transcend business divisions and regions as we
further increase the level of our manufacturing capabilities globally.

While we firmly solidify our foundation, we will steadily execute initiatives for further
growth.
n Growing Each Business Unit Based on Vision 2020
The basis of our efforts will be to grow each business unit based on Vision 2020, which articulates
Toyota Industries’ aspired shape over the medium and long terms.
The first measure in these strategies is spurring technological innovation in environment and energy
areas based on the keywords of the 3Es. We aim to contribute to realizing a society with minimum
environmental impact by developing products in energy conservation and electrification fields. For thesecond measure, which is the expansion of our value chain, in businesses such as Materials Handling
Equipment, we will not only offer products but also support our customers by providing enhanced aftersales services that allow them to use our products with a sense of reassurance for many years to come. In
terms of the third measure of pursuing business development in world markets, we will focus closely on theneeds of customers in each region and provide them with products and services they truly need.
By promoting these initiatives, we intend to grow each business unit. At the same time, we will strive tobroaden the base of our business domains, focus attention on overlapping areas and utilize our strengths
derived from operating diverse businesses to achieve sustained growth and realize Vision 2020.

n Responding Flexibly to Changes and Accelerating Our Transformation
In recent years, the business environment has become increasingly uncertain and complex while the speedof change is accelerating along with the advance of globalization. To respond flexibly to such changes
and realize our vision, we must accelerate our transformation in addition to further strengthening
our foundation.
Since 2000, Toyota Industries has implemented several initiatives for transformation and has
strengthened its structure and competitiveness as well as progressed with globalization of business bases,
sales regions, employees and other areas of its operations.
Principal Initiatives for Transformation to the Present• Made BT Industries AB, a Europe-based manufacturer of materials handling equipment, into
a subsidiary• Took over TMC’s Industrial Equipment Sales Division (integrated manufacturing and sales)• Created a thoroughly lean business structure following the global recession triggered by the collapseof Lehman Brothers• Made Cascade Corporation, a U.S.-based manufacturer of lift truck attachments, into a subsidiary• Made Yantai Shougang TD Automotive Compressor Co., Ltd. (YST), a production base for car
air-conditioning compressors in China, into a subsidiary
We also implemented various initiatives for transformation in each business during fiscal 2015. Each ofthese is based on the three broad strategies of Vision 2020, namely the 3Es, expansion of our value chain
and business development in world markets. Some of the main measures we executed are as follows.

To contribute to a comfortable society and enriched lifestyles

Solution

Key Components

MobilityNew
Product

New
Product

New
Product

New
Product

New
Product<Technological innovation in environment/energy areas>

Value Chain<Expansion of value chain>

World Market<Business development in world markets>
Create new business value by
strengthening both hardware
and software development by
cultivating technology “seeds”

Develop businesses all over theworld and meticulously
respond to each region’s
customer needs

Maintain the world’s
highest-level SEQCD* by
improving our business basedon team strength and TPS

Strengthen growth potential byleveraging synergies among
divisions, strategic M&As andalliances* Safety, the environment, quality, cost and delivery

16

Toyota Industries Report 2015

S ervic es

Contribute to realizing a society
with minimum environmental
impact through technologicalinnovation in environment/
energy areas

on
cti

De

3Es (Energy, Environmental protection and Ecological thinking)Principal Initiatives for Transformation Implemented in Fiscal 2015
In the Materials Handling Equipment Business, we launched a new lift truck in Japan, Europe and othermarkets following the introduction of this model in North America in 2013. This lift truck realizes a dramaticincrease in environmental performance by incorporating not only an internally developed engine but also ourfirst-ever turbocharger that we developed by leveraging our accumulated technologies in the Engine and
Car Air-Conditioning
Compressor businesses.
We are also making
important strides in thedevelopment of fuel cell lift
trucks as next-generation
products. Currently, we arepromoting initiatives forcommercializing fuel cell lift
trucks such as undertaking
a feasibility test at Kansai
New internal-combustion lift truck
Fuel cell lift truck undergoing feasibility test
International Airport. [3Es]equipped with turbocharger
In sales finance for the
Materials Handling Equipment Business, we concluded an agreement with Toyota
Pro
ment
du
lop
ve
Motor Credit Corporation (TMCC), a U.S. finance subsidiary of TMC and one of
the world’s top-class sales finance companies, to acquire its materials handlingequipment sales finance operations. By acquiring these operations, we will
Customers
expand our structure capable of responding to a variety of customer demands
with integrated sales, service and finance functions. [Expansion of value chain]S ale s fi n a n c e
An increasingly important task on the sales front is to expand sales in rapidly
growing emerging countries. As one measure for attaining this objective, Toyota
Expanding the value chain
Industries reached an agreement to acquire the lift truck business of Tailift Co.,by strengthening sales financees

Support industries and social foundations around the world by continuously
supplying products/services that anticipate customers’ needs in order tocontribute to a comfortable society and enriched lifestyles

S al

Vision 202017

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measures, Toyota Industries aims to further raise the expertise of the Engine Business and develop andproduce more competitive diesel engines for automobiles and build an efficient business structure.
Additionally, we will strive to expand the scale of our business and enhance development efficiency byapplying technologies for automobile-use diesel engines to engines for Toyota Industries’ own lift trucks andindustrial machinery products. [3Es]Ltd., a Taiwan-based lift truck manufacturer with notedstrengths in undertaking business operations in emerging
countries, and made it into a consolidated subsidiary in August
2015. Going forward, we will enhance its lineup of mid- andlow-priced lift trucks and strive to realize synergies. [Businessdevelopment in world markets]
In automobile-related businesses, we leveraged thetechnologies nurtured in the Car Air-Conditioning Compressor
Business to develop an oxygen-supplying air compressor and ahydrogen circulation pump, both of which are core componentsof fuel cell vehicles. These have been fitted on TMC’s MIRAI, theworld’s first mass-produced fuel cell vehicles launched in 2014.
As the Japanese government and business community
team up to begin full-fledged initiatives toward the building of ahydrogen-oriented society, Toyota Industries will makeimportant contributions to these efforts by fully utilizing its
technologies and know-how in this field. [3Es]

Lift truck from Tailift Co., Ltd., which is strongin capturing business in emerging countries

Oxygen-supplying air compressor
for fuel cell vehicles

In the Vehicle Business, we are implementing ViRA activities targeting the Vitz (Yaris outside Japan) andRAV4, which are being manufactured by Toyota Industries. The ViRA activities aim at making proactive
proposals in anticipation of changes in customer expectations
based on the concept of “Taking the Lead in Making Our Cars
More Attractive.” In fiscal 2015, we commenced production of a
special-edition RAV4, which reflects the design created throughcollaboration with sales companies outside Japan. [Expansionof value chain]
In the Engine Business, in June 2015 we began producing a
new diesel engine that is being fitted on TMC’s Land Cruiser
Prado and other vehicles. This engine raises power
performance while at the same time significantly improves fueleconomy and other environmental performance features. A
turbocharger, for which we participated in the development
project and commenced production in-house, plays a majorrole in supporting this engine performance. This turbocharger
was developed by drawing on not only the technologies
accumulated in the development of engines but also ourcompression and machining technologies for car airconditioning compressors. We believe the development of thisturbocharger clearly demonstrates one example of how we areable to take advantage of the benefits derived from operating
a diversity of businesses.
Diesel engines are widely used in Europe and demand forthem is now rising in emerging nations and other countries. Inview of this situation, with the aim of strengthening thecompetitiveness of diesel engines for the entire Toyota Group,
Toyota Industries and TMC have agreed to consolidate diesel
engine development and production functions, which havebeen undertaken jointly by both companies, into the operationsof Toyota Industries. Through the implementation of these18

Toyota Industries Report 2015

In the Textile Machinery Business, we have consolidated production bases for spinning frames in India.
This consolidation was decided in keeping with the concept of local production for local consumption giventhat more than 70% of our customers for spinning frames are concentrated in India as well as neighboring
South and Southeast Asian countries. Looking ahead, we will promote cost reductions through suchinitiatives as undertaking optimal parts procurement and maximizing the benefits of mass production whileworking to raise quality and productivity. [Business development in world markets]
As illustrated by these examples, the various transformations implemented thus far are beginning to achieve
results in fiscal 2015. Promoting further efforts to steadily grow these initiatives for transformation will be
crucial for achieving sustainable growth toward the realization of Vision 2020. For this reason, we intend tocontinue to proactively allocate management resources.

Q

Finally, please give us your message to stakeholders.

First of all, I would like to thank our stakeholders for their loyal patronage and ongoing support.
Toyota Industries’ business activities are based on supporting the industrial and social foundations aroundthe world through our sustainable corporate growth, thereby contributing to a comfortable society andenriched lifestyles. We consider the actual undertaking of business as being integral to taking an importantrole in society.
In line with this basic stance, we will carry out business activities by keeping in mind that our company isbuilt on the support of all our stakeholders, including customers, business partners, shareholders andinvestors, members of local and global communities and Toyota Industries Group employees.
Going forward, the Toyota Industries Group will continue to work in unison to meet the expectations of our
stakeholders.

New diesel engine

New turbocharger

19

Corporate Governance
As a global company operating in various countries and regions, Toyota Industries seeks efﬁcient management
while maintaining and enhancing the fairness and transparency of its corporate activities.

Basic Perspective of Corporate GovernanceToyota Industries strives to enhance the long-term stability of its corporate value and maintains society’s trust by earnestly
fulﬁlling its social responsibilities in accordance with its Basic Philosophy. To that end, Toyota Industries strives to further enhance
its corporate governance in its efforts to maintain and improve management efﬁciency and the fairness and transparency of its
corporate activities.

division regularly to monitor and follow the status of theirbusiness execution. At meetings of the Management
Council, directors, managing ofﬁcers and audit &supervisory board members convene to report and conﬁrm
the monthly status of business operations and share overall
deliberations at Board of Directors meetings and othermanagement-related information.
In addition, issues pertaining to human resources,quality, production, procurement and technologies are
discussed at the corresponding functional meetings. We
have also put in place committees to deliberate on more
speciﬁc matters, such as CSR, the environment and exporttransaction controls. These functional meetings andcommittees discuss important matters and action themes inrespective areas.

Corporate Governance Structure
Implementation Structure
Toyota Industries convenes monthly meetings of the Boardof Directors to resolve important management matters andmonitor the execution of duties by directors. We also
appoint outside directors who have a wealth of experienceand knowledge concerning business management. They
attend meetings of the Board of Directors and give opinions
and ask questions as deemed necessary. Through thissupervisory function of outside directors, we ensure thelegality and validity of the Board’s decisions as well as
directors’ execution of duties from an objective perspective.
The Management Committee, which is composed of
directors above the executive vice president level as well as
relevant directors, managing ofﬁcers and audit & supervisoryboard members, deliberates on a variety of issues
concerning important management matters such as our
corporate vision, management policies, medium-termbusiness strategies and major investments.
Toyota Industries has a divisional organization system,with signiﬁcant authority delegated to each businessdivision. For especially crucial matters, however, we haveestablished the Business Operation Committee to enable
the president to meet with the heads of each business

Audit & Supervisory Board System
Toyota Industries has adopted an audit & supervisory board
system. Two full-time audit & supervisory board members
and three outside audit & supervisory board members
attend meetings of the Board of Directors to monitor the
execution of duties by directors. At the same time, meetingsof the Audit & Supervisory Board are held once a month todiscuss and make decisions on important matters related toauditing. The full-time audit & supervisory board members
carry out auditing by attending primary meetings andShareholders’ Meetings
Selection/
Dismissal

Selection/
Dismissal

Reporting
Cooperation

Selection/
Dismissal

Audit &
Supervisory Board

Independent Auditors
Board of Directors

Reporting
ReportingAppointment/
Monitoring

Monitoring
Monitoring

Discussion/
ReportingPresident
Accounting
Audit

(

Management
Committee
Deliberates on importantmatters frommanagement’s perspective

Directives

Business Operation
Committee

Management
Council

Follows up on theexecution ofbusiness operations

Reports on andconfirms execution ofbusiness operations) (Discussion/ Directives
Reporting) (ReportingDirectives

Directives)

Reporting(monthly)

ReportingDirectives
Reporting
Reporting

Functional
Meetings*1
Committees*2
Policies*1: Functional
Meetings*2: Committees

Human Resources

CSR

Quality

Environmental

Audit &
Supervisory
Board
OfficeProduction

Export Transaction
Controls

Monitoring

Procurement

Safety and HealthTechnologies

Profit Improvement

Audit Dept.

Reporting Internal Reporting
Audit

Directors/Managing Officers

These entities deliberate andfollow up on issues in respective areas.

receiving reports directly from directors. Additionally, we
have assigned dedicated personnel, while audit &supervisory board members monitor the legality andefﬁciency of management through collaboration withindependent auditors and the Audit Department.

Appointment of Independent Director and
Audit & Supervisory Board Members
As a publicly listed company, Toyota Industries strives
to ensure the fairness and transparency ofmanagement. Following the Securities Listing
Regulations stipulated by the Tokyo Stock Exchange
and Nagoya Stock Exchange, respectively, to further
enhance our corporate governance Toyota Industries
has appointed as independent members ofmanagement two outside directors and two outside
audit & supervisory board members who are deemed
to have no conﬂicts of interest with our shareholders.

Internal Control System
In accordance with the Corporation Law of Japan, in May
2006 Toyota Industries’ Board of Directors adopted the
Basic Policies for the Establishment of an Internal Control
System (Basic Policies) to ensure compliance, risk
management as well as the effectiveness and efﬁciency ofbusiness operations by incorporating these policies into
each business segment’s annual policies and day-to-day
routine management. The CSR Committee, at its meeting
held in March, assesses the progress made in implementing
the Basic Policies in the year under review and determines
actions for the coming year, including reviewing theimplementation structure and enhancing day-to-day
operational management.
A revision was made to the Corporation Law of Japan in
fiscal 2015 (enforced in May 2015), further requiring
companies to set up and upgrade a system to ensure thefairness of their operations and effectiveness of auditor duties.
Accordingly, we reviewed our Basic Policies, and the revised
policies have been adopted by the Board of Directors.
Furthermore, based on the Financial Instruments andExchange Law (so-called Japanese Sarbanes-Oxley Act
n Internal Control Assessment System (Based on J-SOX)
Internal control activities undertaken by eachdepartment and consolidated subsidiary(Establishment and operation of internal controls)

Annual financial report

Internal Control Report

Review of internal
Improvement of Detection ofcontrols byinternal controls deficiencies Audit Department

Toyota Industries Report 2015

Four Pillars of Compliance Activities
We believe that compliance means both adhering to laws
and regulations and observing ethics and social norms. In
order to ensure compliance, it is vital that each and every
employee has an awareness of compliance.
Under the strong leadership of top management, we
promote compliance throughout the Toyota Industries
Group, including consolidated subsidiaries in and outside
Japan, by formulating a Code of Conduct and thoroughly
informing employees together with checking and monitoring
compliance.
n Four Pillars of Compliance Activities

4

3

2

1

Checking
andMonitoring

Thoroughly
Informing
Employees

Formulating
rules

Leadership/
Organization

CSR selfassessment

Education on
relevant laws
and regulations

Employee Codeof Conduct

Declaration by
the presidentInternal rules

Compliance
Committee

Audit

Manuals

Establishment and Reinforcement of
Implementation Organization
To promote compliance throughout the Toyota Industries
Group, we have established the Compliance Subcommittee(led by head manager of the corporate headquarters*) as asubordinate organization to the CSR Committee. Every year,
the subcommittee formulates an action policy and conductsa follow-up check on the progress of corresponding
activities twice during that year.
In fiscal 2015, we held Compliance Officer Conferencesat each region across the world in an effort to further
enhance compliance within the Toyota Industries Group.

Internal Control Audit Report

Subsidiaries/Affiliates

20

Compliance*As of March 31, 2015

Business Divisions/In-House Company/Departments(As of June 11, 2015)
Toyota Industries’ Corporate Governance Reports are available at: http://toyota-shokki.co.jp (in Japanese)(J-SOX)), we have established and appropriately operated
an internal control system to maintain the reliability ofﬁnancial reporting. The system’s status and progress arereviewed by the Audit Department and audited byindependent auditors. We determine which Toyota Industries
Group companies fall within the scope of J-SOX based on
the degree of impact on the reliability of ﬁnancial reporting.
We determined that our internal controls over ﬁnancial
reporting as of the end of ﬁscal 2015 were effective, andaccordingly, submitted an Internal Control Report in June
2015. The report was reviewed by independent auditors andjudged fair in their Independent Auditors’ Report.

Audit on internal controls by independent auditors

21

n Organization for Promoting Compliance
CSR Committee
Report activities

Give directives
Compliance Subcommittee

Departments in charge of legal compliance: 12
Supporting department: 1

Toyota Industries
Corporation

Consolidated
subsidiaries in Japan

Consolidated subsidiaries
outside Japan

Compliance committees

Compliance officers

Activities in China
In China, we held a Presidents Conference, in which
presidents from all bases in the country attended. They
confirmed the anti-bribery regulations and the introduction of
the leniency system under antitrust laws.
We also held a Compliance Officer Conference in China,
with the participation of compliance officers from five bases.
They shared information on the progress of their respective
compliance-related activities and exchanged opinions
concerning the revision to the Corporate Code of Conduct,
which is used as conduct guidelines across all bases in China.

Conduct and have been working to instill an awarenessamong their employees.
Simultaneously, to prevent significant risks of bribery
and violations of antitrust laws, we have formulated
corresponding regulations and been undertaking activities
to familiarize employees with these regulations.

among employees and create an environment in which
employees foster compliance consciousness on their own.
n Example Topics of e-Learning Materials
Compliance
Environment (water quality and waste)
Courses started up to
fiscal 2014

Response to bribery risk
In fiscal 2015, Toyota Industries formulated the Global Guidelines
on Bribery Prevention applicable to Toyota Industries itself and its
Group companies. Particularly, in countries with a high risk ofbribery, each base has developed internal rules in accordancewith the applicable laws in respective countries and been
conducting activities to familiarize employees with them.

Prevention of bribery
Insider trading regulations
Courses establishedin fiscal 2015

Participants of Compliance Officer Conference held in Europe

Formulation of Code of Conduct andDissemination
Toyota Industries has formulated and distributed to
executives and all employees the Toyota Industries
Corporation Employee Code of Conduct, which serves asconduct guidelines that should be observed by employees,
and has been providing familiarization training. At
subsidiaries in and outside Japan, compliance officers(outside Japan) and compliance committees (in Japan) aretaking a leading role in the formulation of their own Code of
Conduct matched to their respective business lines andcorporate cultures. Toyota Industries’ 33 consolidated
subsidiaries in Japan and 71 consolidated subsidiaries
outside Japan have already created their own Code of

Copyrights
Japan’s subcontracting law
Sexual harassment

We have put in place a system to conduct a check and review
before and after employees of Toyota Industries contact
competitors. We are also familiarizing all employees that they areprohibited from any acts that may possibly constitute a violation of
antitrust laws and monitoring employees’ awareness and behavior
on a periodic basis.

Participants of Presidents Conference in China

Japan’s Personal Information Protection Law
Compliance hotline

Response to risk concerning antitrust laws

Activities in North America and Europe
We held Compliance Officer Conferences in North America
and Europe, with participation of compliance officers from
18 bases and 32 bases, respectively, in each region.
At both conferences, participants deliberated on preventive
measures to two significant risks of bribery and cartel
formation, as an increasing number of companies haverecently been charged with being involved in such practices.
They also exchanged opinions on the structure andoperation of external hotlines planned to be introduced in
North America and Europe, taking into account the actual
conditions at respective bases.

Traffic safety

Abuse of power in the workplace, etc.

† Provided to all employees. Additional courses are under consideration.

Checking and Monitoring Compliance

Thoroughly Informing Employees about
Applicable Laws and Regulations
Toyota Industries provides required legal knowledge toemployees according to their job ranks or positions,familiarizing them with the initial responses that should be
followed upon the occurrence of a problem and educatingthem on risk management. To new or young employees, inparticular, we provide easy-to-understand guidance on“what to do” and “what not to do” in order to improve theircompliance awareness based on laws and corporate ethics,
using the Toyota Industries Corporation Employee Code of
Conduct as an instructional material.
Since fiscal 2014, we have been disseminatinge-learning materials on one specific theme every month inorder to cultivate a deeper understanding of compliance

In order to monitor the status of compliance, we request
internal departments and Toyota Industries Group
companies in and outside Japan to perform a complianceself-assessment. If any items are found to be insufficient in aself-assessment, Toyota Industries’ responsible department
in charge of legal compliance will provide support for
improvement through auditing and other activities.
We also operate a compliance hotline that allows
employees and their families to seek advice on compliancerelated matters without being exposed to negative
consequences, as well as to ensure early discovery and theprevention of issues. This compliance hotline is cited in the
Toyota Industries Corporation Employee Code of Conduct,
and we also create leaflets and posters to inform ouremployees of the service.

n Compliance Education Provided (As of March 31, 2015)
n Compliance Ofﬁcers (outside Japan) and Compliance Committees (in Japan) (As of March 31, 2015)
Regional
representativecompliance officer
for Europe

Europe:37 companiesn Employee Code of Conduct

Compliance officer
in China

Toyota Industries

Wang Xinxing

Andreas Lundh

North America:
18 companies

Asia: 13 companies

FY2013Compliance officer
in North America

Employee Code of Conduct

Sheena Seger

April 2014

Toyota Industries Corporation

Executive training

Rank-based (clerical,
technical) training

T R Nagaraj

Australia: 1 company

South America:
3 companies

Toyota Industries Report 2015

Ongoing initiative

Promoted training on quality, safety, the environment, labor, management ofconfidential information, export transactions, subcontracting and antitrust laws

Ongoing initiative

Training for affiliatedPromoted group training via executive training seminars, subcontractor safe work
training and public relations division training, and through visits to dealers

companies

FY2016

Conducted training for newly appointed executives and legal seminars for executives★9,900 employees participated ★12,000 employees participated ★12,000 employees participated

Consolidated
subsidiaries in
Japan

22

FY2015Training by function

Japan: 33 companies

Compliance officer
in India

FY2014★2,400 employees participated★2,800 employees participatedOngoing initiative★2,400 employees participated

Conducted training on the Code of Conduct, safety, etc.
Ongoing initiative★16,100 employees participated ★15,400 employees participated ★20,200 employees participated23

Management of Conﬁdential
Information
Basic Perspective

Basic Perspective

We recognize that the personal information of customers,
employees and business partners as well as information
concerning our technologies and sales activities are assetsthat need to be protected. Accordingly, we are making ourutmost efforts to safeguard conﬁdential information andstrengthen its management as one of the CSR areas.

Based on the Basic Policies for the Establishment of anInternal Control System in compliance with the Corporation
Law of Japan, Toyota Industries is working to strengthen
regulations and a structure to promote risk management.
We regard the following aspects as the basics of risk
management and implement initiatives accordingly.
(1)	Incorporating measures to prevent and reduce potential
risks into daily routines and following up on the progressof implementation(2)	Ensuring quick and precise actions to minimize theimpact on business and society when a risk becomesapparent

Implementation Structure
Toyota Industries has set up the Information Security
Subcommittee (led by a director in charge of generaladministration*1) as a subordinate organization to the CSR
Committee to promote proper management of conﬁdential
information, taking appropriate actions against the leakageof conﬁdential information and complying with the Unfair
Competition Prevention Act and the Act on the Protection of
Personal Information.
To thoroughly implement the initiatives adopted by thesubcommittee, we appoint information security managers*2
and information security administrators*3 at eachdepartment. We strive to raise awareness about information
security among their staff by holding workplace meetingsand conducting self-checks regarding their information
security practices.
n Activity Examples

Activities up to fiscal 2014
Activities by Toyota Industries• Reviewing rules for management of confidential information• Rank-based group education• Restrictions on taking photographs on company premises•	Attaching a security cable with a lock to all PCs to prevent
unauthorized removal off the premises• Restricting the copying of electronic data on recording media•	Monitoring email correspondence
Activities in collaboration with other Toyota Group companies•	“All Toyota Information Security Awareness Month” activities in
May and October to raise employee awareness and conduct
auditing by checking off-the-premises removal of personal
computers and recording media
New activities in fiscal 2015
•	Requiring employees to sign a confidentiality agreement uponretirement•	Reinforcing checks on the history of electronic data being taken
off the premises upon retirement, etc.

Our consolidated subsidiaries in and outside Japan also
appoint respective information security managers andinformation security administrators. We have also developed
common guidelines concerning management of conﬁdential
information and follow up on their activities on a periodic basis.
*1: As of March 31, 2015
*2: Head of each department*3: A person within the department, appointed by the head

24

Risk Management

Toyota Industries Report 2015

Implementation Structure
Business divisions and other departments at the Head
Ofﬁce develop and promote annual action policies that
integrate measures to prevent and control risks related toquality, safety, the environment, personnel, exporttransactions, disasters and information security. Progress is
assessed and followed up by each functional management
entity such as the CSR Committee and the Environmental
Committee. At the same time, functional departments at the
Head Ofﬁce such as those responsible for quality, safety andthe environment formulate rules and regulations andmanuals from a Group-wide perspective, including
consolidated subsidiaries. By conﬁrming and following up on
the progress through operational audits and workplaceinspections, they provide support for raising the level of risk
management at each business division and consolidated
subsidiary.
We have also formulated the Crisis Response Manual,
which defines our initial response to a problem or a crisis.
This manual lays out basic rules to be followed when a risk
becomes evident and a problem or crisis occurs. The aim isto ensure quick reporting to top management, perform an
accurate assessment of the impact on society and businessactivities and minimize damage through appropriate actions.
During fiscal 2015, we conducted a review of the manual
to enforce more Group-wide efforts. Specifically, the review
included clarifying responsibility and authority between
Toyota Industries and its Group companies based on theassumption that a problem or crisis occurred at a Group
company.

Response to Possible Major Earthquake
We consider the occurrence of a major earthquake in Japanas one of the most signiﬁcant risks. Since fiscal 2011, we
have been implementing disaster prevention measures that
focus on three basic policies, namely placing maximum
priority on human life; placing top priority on the recovery of
local communities; and ensuring the quickest possible
recovery.

Furthermore, we divide these measures into the three
categories of “precautionary, pre-disaster mitigation,” “initial
response to be followed immediately after the disaster” and“restoration of production,” and are respectively making
Company-wide efforts.
In fiscal 2015, based on the results of a review of ourefforts in the previous fiscal year, we conducted disaster
drills in more realistic settings. We intend to continuously
upgrade our activities.

Disaster Prevention Structure
We have been reinforcing our disaster prevention structure
to enable smooth transition from the initial response stage tothe production restoration stage.
The Disaster Prevention Response Headquarters, led by
the executive vice president and consisting ofrepresentatives from the functional departments at the Head
Office, is responsible for collecting information from plants
and other relevant parties and making Company-widedecisions based on the information collected.
n Disaster Prevention Structure
Disaster Prevention Response Headquarters (Established in Kariya Plant)
Plant Response
Headquarters
Kariya Plant
Obu Plant
Kyowa Plant
Nagakusa Plant &Morioka Works
Takahama Plant
Hekinan Plant
Higashichita Plant
Higashiura Plant
Anjo Plant

Key Facility
e-Lab (information
systems headquarters)

Remote Sites

Educational Sites
Company dormitories
Company resort
facilities

Affiliated Companies

Suppliers

Tokyo Office
Toyota L&F Customers
Center (Chiba)
TMHG Training Center(Handa)Efforts to Cultivate Human Resources throughTraining
1. Training at Disaster Prevention Response
Headquarters
We conduct simulation training in which employees collectinformation on damages to both inside and outside thecompany premises, swiftly make decisions and disseminate
these decisions throughout Toyota Industries.
During fiscal 2015, assuming the occurrence of adisaster during nighttime and on a weekend
or holiday, we provided
training to members
selected from thefunctional departments
who live close to the
Head Office.
Disaster response meeting

2. Training at Plant Response Headquartersa) Walk-Through Drill
Based on the standard response procedures formulated byeach plant, we conduct genchi genbutsu (go and see foryourself) drills to confirm
supply storage locations
and usage procedures.
Members of each
Plant Response
Headquarters work toenhance our response todisasters by identifying
points that require
Confirming procedures to activate an
improvement or
emergency power generator
particular attention.
b) Tabletop Exercise
We provide training to the head (plant manager) andmembers of each Plant Response Headquarters to ensurethat we promptly make an initial response and offer support
to local communities in case of a disaster. In fiscal 2015, in
addition to drills forenabling quick disaster
response, we held
discussion sessions on
the theme of “thinking on
your own” to raiseawareness of eachmember for disaster
Checking internal disaster damage information
prevention.
3. Training for Restorationa) Power Restoration Drill
Each plant has developed procedures to restore power
supplies, including electricity and gas, which are essential inrestoring production activities. Starting from fiscal 2015,
each plant conducts
genchi genbutsu training
on a periodic basis.
Through the training weare identifying problems
and making
improvements to step up
our efforts to ensure
quick restoration
Drill to restore a primary power source
activities.
b) System Restoration Drill
The e-Lab, responsible for managing Toyota Industries’ dataservers, has created procedures to restore critical data aftera disaster. We conduct restoration drills jointly with Toyoda
High System, Incorporated, a consolidated subsidiaryengaged in development and operation of information
infrastructures and systems, and work to improve ourreadiness for quick restoration.
4. Training for Identifying Disaster Damage
Starting from fiscal 2014, we repeatedly conduct drills jointlywith our affiliated companies and suppliers in order tofamiliarize them with the use of IT tools to quickly identify thedamage status during a disaster.

25

Special Feature

Notional Image of a Future Hydrogen-Based Society

1

Our Efforts toward the Creation of a
Hydrogen-Based Society

Produce hydrogen

Transport hydrogen
Store hydrogen

Use hydrogen

H2O

Water
Producing hydrogen throughwind power generation

Energy demand and consumption are expected to increase on a global scale as the world economy continues to grow,driven by economic expansion in emerging countries. This will entail greater consumption of petroleum and other fossil
fuels, and reducing the resulting greenhouse gas (GHG) emissions is becoming an issue of increasing significance.
One promising solution to this issue is hydrogen. Hydrogen is present on earth in virtually inexhaustible
quantities and can be produced in many ways. We can expect a sustainable, stable supply of hydrogen into
the future.
Hydrogen can also compensate for certain drawbacks of electricity as it can be transported and stored in agaseous, liquid or solid form. As such, the Japanese government, local governments and industry work jointly andextensively to utilize and spread the use of hydrogen.
Toyota Industries, in promoting innovations of environmental and energy technologies based on the 3Es (Energy,
Environmental protection and Ecological thinking), has been focusing on hydrogen energy and accelerating thedevelopment of fuel cell technology.
This special feature highlights our efforts to date in creating a hydrogen-based society.

Producing hydrogen fromliquefied natural gas (LNG)

Hydrogentransport truck

Hydrogencarrier vessel

Hydrogentanks

Producing hydrogenfrom solar heat

Home-use fuel cell
Fuel cell vehicle

Fuel cell vehicle
Hydrogen station

Fuel cell towing tractor
Fuel cell bus
Fuel cell lift truck

Large fuel cell

Fuel cell vehicle

Our Products to Support “MIRAI,”
the World’s First Mass-Produced
Fuel Cell Vehicle
The MIRAI is the world’s first mass-produced fuel cell vehicle(FCV) released by Toyota Motor Corporation (TMC). It has
drawn much public attention as an ultimate eco car thatemits only water and no CO2 while in motion. At its core arecomponents developed by Toyota Industries, such as anoxygen-supplying air compressor and a hydrogen circulation
pump, playing crucial roles and supporting the driving
performance of this next-generation vehicle.
(See page 28 for details.)

26

Toyota Industries Report 2015

Oxygen-supplying air
compressor for FCV

Use of Fuel Cell Technology in
Lift Trucks

Hydrogen circulation
pump for FCV

Fuel cell vehicle

Electric car
air-conditioning
compressor

Inverter for hydrogen
circulation pump

Many lift trucks operate at various logistics sites across theworld, including factories, airports, seaports, warehouses
and market sites. Now, these trucks are also required todemonstrate greater environmental performance alongwith improved functionality and operability. Our fuel cell (FC)lift trucks currently under development hold great promise
as next-generation lift trucks that can satisfy both of theserequirements.
(See page 29 for details.)

FC lift truck operating outdoors at
Kansai International Airport (feasibility test)27

Special Feature

Our Efforts toward the Creation of a Hydrogen-Based Society

Oxygen-Supplying Air Compressor and Other Toyota Industries Products Used in the MIRAI

Accelerating Development of FC Lift Trucks to Enable Eco-Friendly Logistics Operations

Development of Crucial Components to Support the Fuel Cell System, an FCV Core

Initiatives for Achieving Practical Application of Fuel Cell Technology in Lift Trucks
In the Materials Handling Equipment Business as well, we are engaging in development of next-generation lift
trucks that can simultaneously offer high environmental and economic performance, while continuing to seek higher
environmental performance in internal-combustion and electric lift trucks.

The Toyota FCV MIRAI runs on electricity generated from hydrogen and oxygen and produces no exhaust emissions
or CO2 when driven. This next-generation vehicle, which delivers both superior environmental performance and thepleasure of driving, has been equipped with crucial components developed by Toyota Industries.
Oxygen-Supplying Air Compressor to Support
Driving Pleasure
The MIRAI offers smooth driving performance, excellent
acceleration from startup and a cruising range ofapproximately 650 km in one hydrogen charge. Thesefeatures are supported by our oxygen-supplying air
compressor, which takes in and compresses air and feeds
oxygen required to generate electricity into the fuel cell.
Based on a range of technologies we have cultivated in thedevelopment of car air-conditioning compressors, we
adopted the world’s first six-lobe helical root-type rotor andattained high air compression efficiency in the idling period
and during acceleration.
An FCV is a type of electric vehicle that runs onelectricity generated using hydrogen as fuel, and a high levelof operational quietness is required for its components whenthe vehicle is in motion. Our development efforts thus
concentrated on achieving exceptionally high operational
quietness while at the same time creating sound that evokes
the stirring takeoff of acceleration. We have contributed tothe delivery of driving exhilaration, going a step beyond
simply offering an environmentally excellent vehicle.

How a Fuel Cell Works Under a certain condition, hydrogen and oxygen

Oxygen-supplying
air compressor
Compresses and efficiently
supplies air into the fuel cell

Oxygen (O2)

Oxygen

Water
(H2O)

Electricity
generation

Oxygen + hydrogen =Electricity + water

Oxygen + hydrogen =Electricity + water

FC stack(electricity
generation unit)

FC stack(electricity
generation unit)

Toyota Industries Report 2015

Water

Circulates a portion of hydrogenthat did not undergo a chemical
reaction and the water generated
in the FC stack

Hydrogencirculation pump
Humidification

HydrogenHydrogen(H2)

Hydrogen tank

Water discharge (H2O)

as the water generated in the FC stack. However, increasing
the amount of water to be circulated by the pump means alarger quantity of water remains within the pump when thevehicle comes to a stop. This water freezes at extremely low
temperatures and hinders the start of the electricity
generation process. We modified the internal structure of thepump to improve the system’s ability to start operation atlower temperatures and contributed to the elimination of ahumidifier.

For Achieving Even Greater FCV Performance

Toyota Industries’ hydrogen circulation pump contributes tothe reduced size and weight and greater efficiency of thefuel cell system.
The FC stack, a unit to generate electricity, produces
electricity more efficiently in a wet condition. For this reason,
a humidifier was installed in a conventional fuel cell system,
making size reduction difficult. In order to remove thehumidifier from the system, we decided to shift its role to ahydrogen circulation pump, which circulates a portion ofhydrogen that did not undergo a chemical reaction as wellHydrogenElectricity
generation

OxygenOxygen-supplying air compressor

Newly Developed Hydrogen Circulation Pump to
Help Reduce Size and Weight of the Fuel Cell
System

Improving Reliability of FC Lift Trucks throughFeasibility Tests

react together and generate electricity and water.
A fuel cell is created by applying this principle.

Hydrogen circulation pump28

1

Our excellence stems from our compression-related
expertise accumulated in the Car Air-Conditioning
Compressor Business and from our technologicalcapabilities for size and weight reductions, fuel savings andmachining. Based on this technical superiority and our total
strengths resulting from our involvement in a diverse rangeof businesses, we closely collaborated with the Electronics
Division and succeeded in developing crucial components
for FCVs.
Looking ahead, we will accelerate development of fuelcell technology to contribute to the enhancement of the
product appeal of FCVs.

Growing Potential of FC Lift Trucks
Lift trucks are used not only outdoors but also in suchindoor logistics sites as warehouses and factories. Their
indoor use makes superior environmental performance andquieter operation all the more important. Leveraging thetechnologies and know-how accumulated in the field of lift
trucks, we are carrying out R&D of FC lift trucks that offer
high environmental as well as economic performance.
We believe that such FC lift trucks have the potential togenerate a range of benefits as follows.
1)	FC lift trucks realize excellent environmental performance,as their operation only generates water but emits noCO2 or substances of concern, thereby contributing to acleaner and more comfortable logistics environment.
2)	Hydrogen refueling just takes about three minutes,
allowing longer continuous uptime without battery
charging or replacement and thus enabling a significant
improvement in operational efficiency.
3)	Not having to replace the battery eliminates the need fora storage space and charging equipment, thereby
saving indoor space.
4)	Equipped with external power supply functionality, FC lift
trucks can be used as a mobile electricity generator to
power electric tools during ordinary times and as an
emergency power source in case of a disaster-induced
power outages.

We have been conducting feasibility tests in order to raise
the reliability of FC lift trucks and achieve their early
application in practical fields.
We participated in the Kitakyushu Smart Community
Project jointly undertaken by the Ministry of Economy, Tradeand Industry and Kitakyushu City and carried out a feasibility
test of our FC lift trucks for two years from 2012. During thetest, we operated FC lift trucks equipped with a compact
and highly efficient lift truck fuel cell system jointly developedwith TMC at the Kitakyushu Plant of Toyoda Gosei Co., Ltd.
and worked to reduce CO2 emissions and attain the levelingof energy consumption.
In addition, we have been
participating in the “Hydrogen Grid
Project” taking place at KansaiInternational Airport. In 2015, westarted collecting data on theoperations and effectiveness of “Wellto Wheel*” CO2 emissions reduction
FC lift truck operating in a warehouseby operating the same FC lift truck(feasibility test)
used in the Kitakyushu project under
different usage conditions. Moreover,
we have developed a new practicaluse lift truck model fitted with thesame fuel cell used in the Toyota
MIRAI FCV as a means to achieve
better reliability and durability as well
as lower costs.
* From extraction of fuel raw materials to operation oflift trucks

Refueling with hydrogen

Working from Indoor Logistics toward theCreation of a Hydrogen-Based Society
Creating a hydrogen-based society requires an appropriate
infrastructure, including hydrogen stations. Such an
infrastructure is easier to set up for lift trucks than FCVs
because lift trucks usually operate within a limited area, suchas in a factory. Through the development and use of FC lift
trucks, we aim to promote the establishment of the required
infrastructure within an airport or a factory and contribute to
the creation of a hydrogen-based society by capitalizing on
our experience in the field of indoor logistics.

Accelerating Efforts for the Creation of a Hydrogen-Based Society
As a technology to reduce CO2 emissions and respond to energy diversification, the use of fuel cells has been expanding in
automobiles as well as for residential applications (ENE-FARM fuel cell system). However, there are still a number of issues toovercome before their practical use can spread on a full-fledged basis, which include reducing costs, improving reliability,
establishing an infrastructure and lowering retail prices of hydrogen fuel.
Toyota Industries, with its total strengths spanning diverse business fields, will accelerate its efforts toward the creation ofa hydrogen-based society by making maximum use of resources available within the Toyota Industries Group and capitalizing
on a pool of technology and experience accumulated to date.

29

Special Feature

2

Offering New Clean Diesel Engines with
Significantly Enhanced Environmental
Performance to Customers around
the World
Sustainable growth of the global automobile market is expected to continue primarily in emerging countries.
At the same time, environmental regulations are increasingly becoming more stringent in both developed andemerging countries. In response, there is a growing demand for diesel engines that feature superior fuelefficiency and emit less CO2. Amid such conditions, Toyota Industries’ Engine Division has worked closelywith Toyota Motor Corporation (TMC) in the diesel engine business in various areas, including development,
production engineering and production.
In this special feature, we introduce the initiatives undertaken for the development and production of a
new diesel engine, which simultaneously realizes superior power performance and environmental
performance, as well as a turbocharger (hereafter, turbo) that plays a significant role in the enhancement ofthese performances.

30

Toyota Industries Report 201531

Special FeatureParticipating in the Launch of TMC’s New
Environment-Conscious Diesel Engines fromthe Development Stage
Leveraging long-accumulated diesel engine technologies,
we participated in the development of the GD diesel engines(1GD-FTV and 2GD-FTV), successor models of TMC’s
mainstay KD engine. In June 2015, our Higashichita Plant in
Aichi Prefecture commenced production of the 1GD-FTV, a
2.8L direct-injection turbo diesel engine fitted on the Land
Cruiser Prado and the Hilux that are marketed in Japan and
Thailand, respectively.
The GD diesel engine, together with the 2GD-FTV 2.4L
direct-injection turbo diesel engine, is fitted on approximately
70% of TMC’s diesel-powered vehicles, and was developed
in response to needs for cleaner engines both in developed
countries where more stringent emissions standards arebeing enforced and in emerging countries where emissions
standards are expected to be strengthened. The newly
developed GD diesel engine adopted next-generation
advanced thermal insulation diesel combustion that uses
Thermo Swing Wall Insulation Technology (TSWIN)*1 for the
first time in the world as well as the turbo for which weparticipated in the development. Together, these two
features enable maximum thermal efficiency of 44%, one of
the highest in the world. Compared with the KD diesel
engine, the GD model offers significantly enhanced
environmental performance, such as an approximately 15%
reduction in CO2 emissions at maximum. In terms of power
performance, the starting torque and acceleration response
have been dramatically improved. Further, the adoption of
the urea Selective Catalytic Reduction (SCR)*2 system, a
TMC first, and other features clear Euro 6, the world’s moststringent emissions standard, as well as Japan’s 2010
emissions standards and other regulations.
*1: Combustion improvement technology to reduce cooling losses during combustion*2: Technology to neutralize nitrogen oxides in emission gases using urea

Toyota Industries’ Engine Business
Possessing a History of Innovation andChallenges
Toyota Industries entered the Engine Business in 1953.
Production expanded from automotive gasoline engines toautomotive diesel engines and subsequently to engines forindustrial use, including lift trucks, by applying thetechnologies for automotive engines. We have thus steadilybroadened our scope of the Engine Business.
At present, we produce such automotive engines as KDdiesel engines, which are fitted in TMC’s Innovative
International Multi-purpose Vehicle (IMV) series; VD diesel
engines adopted in the Land Cruiser and other vehicles; andAR gasoline engines installed in the RAV4 and othervehicles. For industrial use, we also produce Toyota 1KD
diesel engines, Y gas/gasoline engines and other engines
and fit them in our lift trucks and other industrial vehicles.
Among these, we play a particularly major role in thedevelopment and production of TMC’s diesel engines,
contributing to their production of appealing diesel-powered
vehicles by tapping our strengths in terms of development
and production aspects such as the development of clean,fuel-efficient and high-performance engines as well as highmix low-volume production through flexible production lines.

New Engine Meeting the Globally Rising
Expectations for Clean Diesel Engines
While automobiles are becoming increasingly electrified, as
exemplified by hybrid vehicles and electric vehicles, inEurope diesel-powered vehicles have long been highly
appreciated for their effectiveness in countering global
warming because they are fuel efficient and produce less
CO2 emissions compared with gasoline-powered vehicles.
Also, in terms of power performance, diesel engines could

Applying Our Strengths Such as Technologies
and Know-How Cultivated in the Compressor
Business to the Development of the Turbo,a Key Component
More often than not, an engine’s power performance andenvironmental performance are determined by thecapabilities of the turbo installed inside the engine. For thisComments from Engine Developers(Engineering Dept., Engine Div.)

Takeyuki
Kato(Thousand units)
800■ Gasoline■ Diesel
700
600
500
400
300
200
100

66

71

76

81

86

91

96

01

06

11

Toyota Industries Report 2015

Working leader

Comparison of GD Engine and KD Engine■ Maximum torque■ Low speed torque■ CO2 emissions

(N·m)

(N·m)

(g/km)

500

400

300

400
Good

300

Good

300

Good

200

200
200

100
100

100
0
KD
GD
(2.5L) (2.4L)

0

0
KD
GD
(2.5L) (2.4L)

KD
GD(2.5L) (2.4L)

reason, improvements in turbos are indispensable asemissions standards become ever more stringent
worldwide. Naturally, our endeavor to develop the world’s
best diesel engines entailed the development of the world’s
best turbo.
However, four leading turbo manufacturers alreadyaccount for more than 80% of the global market, and it wasconsidered that there was no room for new entrants.
Undaunted by this disadvantage, we participated in TMC’s
project to develop diesel engine turbos for automobiles andsuccessfully commenced production in February 2015.
For the launch of the turbo, we drew upon the strengthsof each of our diverse businesses, including close
cooperation with the GD diesel engine development team,know-how cultivated in the Car Air-Conditioning
Compressor Business as well as the experience in 2013 to
install a new internal-combustion lift truck with our firstindustrial turbo developed and produced in-house.
In the turbo development, a particular focus was placedon realizing lighter weight and a more compact size whileachieving high efficiency at the same time. In order toefficiently reroute exhaust energy back into the engine, we
reviewed the basic framework and materials, changed
production methods and incorporated various ingenuities. In
addition, since the pleasure of driving is an essential element

15*Including lift truck engines and excluding CKD

32Taku Ishikawa

We set a technically challenging goal for thedevelopment of the GD diesel engine in order tosignificantly improve performance, with all relevant
departments such as development, quality assurance
and production engineering working together as one
team.
For example, we aimed to reduce the number ofbolts to tighten one cylinder from six to four in order torealize the optimum design of the port, but that entailed
the problem of inadequate sealing of the cylinder head.
Also, improving engine performance gave rise to such
issues as thermal load and stress on the cylinder head,requiring a review of the structure and materials as well.
With the difficultly of such challenges, all the related
departments on the same floor gathered acrossboundaries and worked closely to surmount theseissues, which gave us tremendous confidence inourselves.

Toyota Industries’ Engine Production

61

Offering New Clean Diesel Engines with Significantly Enhanced Environmental Performance to Customers around the Worldbe regarded as a power train that can meet the highstandards required for installation in TMC’s Land Cruiser and
IMV vehicles.
For the development of the GD diesel engine, wedrastically revolutionized the engine structure not only torespond to emissions standards in Europe, Japan, Asia,
South America, Oceania and other regions but also to
realize superior performance in such properties as fuelefficiency, low speed torque, quiet operation and reliability.
As for the turbo fitted on the engine, respective members of
the engine and turbo development projects shared targets
and undertook tasks through close communication on eachother’s development status.
Primary concerns regarding diesel engines include noiseand vibration as well as particulate matter (PM) and othersubstances of concern included in emissions. The GD diesel
engine, however, not only offers a powerful driving
experience representative of diesel-powered vehicles but
also features improved environmental performance, and we
expect this engine will demonstrate excellent
competitiveness in the future global market.

Group manager

0(FY) 54

2

Newly developed GD diesel engine

New turbocharger

33

Special Feature

2

Offering New Clean Diesel Engines with Significantly Enhanced Environmental Performance to Customers around the Worldof passenger cars, we undertook development while
seeking advice from the engine development team how to“spice up” the turbo, which enabled us to gain yet anotherinvaluable experience and knowledge.
Our development team was responsible primarily for
improving the variable nozzle vane, which significantly
contributes to better performance of the turbo, andreviewing the aerodynamic design. These achievements
made it possible to realize the world’s top level in terms ofcompact size, high efficiency and wider flow range of theturbo. In the commercialization stage of the turbo, we
launched a Company-wide project and leveraged ourbroad-ranging technologies and know-how, including thoseof the Engine Business as well as compression andmachining technologies of the Car Air-Conditioning
Compressor Business. In addition, we applied technologies
accumulated by the Engine Business and completed an
optimum turbo that provides superior cost performance for
the GD diesel engine.
An even more meticulous machining precision isrequired for the production of turbos compared withengines. As such, we sought the cooperation of our
Production Engineering Development Center to enablein-house production. The center has been responsible forthe development of production equipment for car airconditioning compressors, which requires extremely precise
machining technologies, and the collaboration enabledmass production of high-quality, high-performance turbos.

Comments from Turbo Developers 

ManabuIshikawa

Project leader(T Project, Engine Div.)

Hiromu Iwata
Working leader

We spent enormous efforts in the design of the variable
nozzle, which affects the basic performance of the new
turbo. The nozzle plays a major role in adjusting the flowof emissions to the rotating wing depending on theoperating condition of the engine and in realizing highefficiency of the turbo. However, optimizing the nozzle
for the engine itself was a big challenge. While changes
in the turbo design would have an impact on the engine
system, changes in the engine would affect the turbo
structure. To address this issue, we exhaustively
discussed matters by leveraging the advantage ofdeveloping both the engine and turbo, so we all had agreat sense of accomplishment when we were able tocome up with the best possible solution. Building on
this experience and knowledge, we will aim for thedevelopment of next-generation turbos, including thosefor materials handling equipment.

Comments from Turbo Production Engineer(Production Engineering Dept., Engine Div.)

Katsushige
Takamatsu
Working leader

The most difficult challenge in the production of the new
turbo was balancing high quality and low cost in
addition downsizing. To provide products whose quality
is competitive with leading turbo manufacturers, weestablished a production line by utilizing ourmanufacturing expertise and incorporating new ideas.
Particularly crucial was the machining of the wing, forwhich members from such departments asdevelopment, production engineering, production andquality assurance worked as a team to achieve highmachining precision. By leveraging our past experiencein the production of lift truck turbos, we repeatedly
discussed with members of the development
department how to balance machining precision withproduction efficiency, thus successfully establishing amore efficient production line.

Business Activities

Creating a Structure to Deliver Appealing
Diesel Engines to Customers around the WorldIn November 2014, we announced the agreement of thegradual integration of development and production of diesel
engines, which have been carried out jointly with TMC. The
aim was to efficiently strengthen the competitiveness ofdiesel engines by consolidating functions undertaken byboth companies and optimally allocating resources.
We will strive to offer appealing automotive and industrial
diesel engines that possess even more superior quality,
including higher environmental performance, by promoting
development efficiency, bolstering cost competitiveness,further enhancing specialization of the Engine Business andhoning 3E (Energy, Environmental protection and Ecologicalthinking) technologies.
We will aim for the growth of our Engine Business bysolidifying the development and production foundations built
by the launch of new diesel engines and turbos, thereby
contributing to the realization of an environmentally friendly
society.

Materials Handling Equipment / Logistics

P36 − 43

Materials Handling Equipment

P36 − 41

Logistics

P

42− 43

AutomobileP

44− 49Vehicle / Engine / Car Air-Conditioning Compressor / Car Electronics

Textile Machinery

P

50

Assignment of Automotive Diesel Engine Production in the Toyota Group
Models in which Toyota Industries isinvolved from the development stage

L: Displacement

L

3.0L

VD

4.5L

HZ

4.2L

KD
GD

3.0L
2.5L
2.8L
2.4L

Toyota Industries

GD

3.0L
2.5L
2.8L
2.4L

ND

1.4L

KD

＊
AD

2.2L

ND

1.4L

B

3.7L

KD

3.0L
2.5L

Daihatsu

Toyota* TMIP Joint venture in Poland established by TMC and Toyota Industries

34

Toyota Industries Report 201535

Materials Handling
Equipment / Logistics

Business Activities in Fiscal 2015

Business Overview in Fiscal 2015
In the materials handling equipment market, growthcontinued globally on the back of strong sales in Japan aswell as in North America, Europe and China. Based on theconditions of respective markets, Toyota Industries
augmented its production and sales activities andlaunched new products. Sales of our mainstay lift trucks
expanded in Japan, North America and Europe. As aresult, unit sales for fiscal 2015 increased 23,000 units, or
12%, to a total of 222,000 units over the previous fiscal
year. The increase in unit sales of lift trucks, coupled withsteady sales of lift truck attachments and aerial work
platforms, pushed up net sales by ¥115.7 billion, or 14%,to ¥924.9 billion.

The lift truck market in 2014 posted strong sales mainly inJapan, North America, Europe and China. In Japan, we
worked to expand sales in the manufacturing industry, inwhich there has been an upswing in capital investment, as
well as in such industries as transportation, warehousing
and construction. In North America and Europe, we sought
to respond to diverse customer needs by offering new
products and services in addition to implementing a range ofsales promotion initiatives. Regarding emerging countries,
we strived to reinforce our sales structures in China, ASEAN
countries and the Middle East, where growth remains
strong, while seeking to increase the competitiveness of our
locally manufactured lift trucks.
As one response to the expected continued growth inmarkets in emerging countries, Toyota Industries reached anagreement to acquire the lift truck business of Tailift Co.,
Ltd., a Taiwanese developer and manufacturer of lift trucks,
and made it into a consolidated subsidiary in August 2015.
Tailift mainly handles products matched to needs in emerging
countries, and the two companies complement each otherin terms of sales territory and product range. Capitalizing on
Tailift’s strengths, we aim to achieve further growth inemerging countries where market expansion is expected.

Aichi Corporation’s
aerial work platform(Thousand units)

Japan

250

TOYOTA
Europe200

TOYOTA
BT
CESAB

150

TOYOTABTRAYMOND

50

0*2: Surveys by Japan Industrial Vehicles Association and Toyota Industries Corporation,
2014

New GENEO (released in July 2014)
Received a 2014 Good Design Award, German Design Award
2015 Special Mention, iF Design Award and 2014 Best 10 New
Products Award (sponsored by The Nikkan Kogyo Shimbun, Ltd.)

Demonstrating Product Appeal through an
Exhibition

TOYOTARAYMOND

ALOMA*1

TOYOTABTRAYMOND
(FY)

11

12

13

14

15
Top: Region Bottom: Brand

36

In 2014, the Japanese lift truck market showed steady
growth. Toyota Industries sought to increase sales in the
manufacturing industry, in which there has been an upswing
in capital investment, including manufacturers oftransportation equipment. At the same time, we proactively
promoted sales of the new GENEO internal-combustion lift
trucks released in July 2014. As a result, unit sales in fiscal
2015 increased 5% year-on-year to 39,000 units. Toyota
Industries achieved a record-high share of 47.0% in theJapanese market, topping the previous year’s record for thethird consecutive year in 2014, and maintained its top
position*2 for the 49th consecutive year.

North America

China

100

Launching New GENEO Mainstay Lift Trucks

Toyota Industries participated in Logis-Tech Tokyo 2014 heldin September 2014 to showcase its advanced environmental
technology and extensive product range, including the new
GENEO lift trucks, fuel cell (FC) lift trucks and lithium-ion lift
trucks, of which the latter two are under development. On
the main stage, we presented case examples of logistics
solutions to offer suggestions for increasing logistics
efficiency.

n Toyota Material Handling Group Brands

Materials Handling Equipment Sales

Japanese Market

Materials Handling Equipment / Logistics

As a market leader in the materials handling equipment andlogistics fields, Toyota Industries assists customers
worldwide in attaining greater logistics efficiencies by
delivering logistics solutions optimally tailored to their
specific needs.
Under the TMHG management structure, we engage inbusiness under the TOYOTA, BT, RAYMOND and CESAB
brands. Mutually utilizing the sales and development
strengths of each brand, TMHG is promoting businessexpansion on a global scale.

As a market leader with extensive knowledge ofglobal logistics needs, Toyota Industries provides arange of materials handling equipment, mainly lift
trucks, and logistics solutions to customers.

In addition, with the aim of strengthening our sales
finance operations for materials handling equipment, weconcluded an agreement in October 2014 to acquire thematerials handling equipment sales finance operations of
Toyota Motor Credit Corporation (TMCC), a U.S. financesubsidiary of Toyota Motor Corporation (TMC).
TMCC has long-accumulated expertise in sales financefor materials handling equipment, an excellent management
and operational system and structure covering credit andresidual value risks, and a broad lineup of financial products.
We will leverage these strengths in bolstering our sales
finance business and extend our reach globally in the future.
As for the Materials Handling Engineering Business,
which is represented by automated storage and retrieval
systems and automatic guided vehicles, we are working tomeet a wide range of needs by providing consulting services
for customers’ logistics-related issues as well as assistingthem with installation and operation of equipment. In the
e-commerce industry, which has been growing rapidlyreflecting recent changes in people’s lifestyles, we havebeen proactively making various proposals and successfullyacquiring new orders.
In the field of aerial work platforms, sales of Aichi
Corporation, which possesses the top brand in this field inJapan, were negatively affected by a cutback in capital
investment by principal customers in the country such as
the electric power and telecommunication industries. On theother hand, sales in the leasing industry grew in line withrises in construction demand as well as demand for social
infrastructure maintenance work. On the whole, sales ofaerial work platforms increased, andAichi posted sales exceeding theprevious fiscal year’s level. The
company’s profits also increased
year-on-year as a result of its
cost-cutting efforts and profit
improvements at its subsidiaries
in China.

Business Activities

Materials Handling Equipment

Global Business Development Led by Toyota
Material Handling Group (TMHG)

Toyota Industries Report 2015

*1: ALOMA stands for Asia, Latin America, Oceania, Middle East and Africa.

Toyota Industries booth at Logis-Tech Tokyo 201437

Initiative to Achieve Greater Customer
Satisfaction

Aiming for Industry-Leading Product Offerings
and Customer-Oriented Solutions
The North American lift truck market is expected to show
continued growth in 2015. We aim to maintain ourleadership position in North America by continuing toprovide customer-oriented solutions and offer leading
TOYOTA- and RAYMOND-brand products that balanceenvironmental performance and productivity and contributeto raising customers’ logistics efficiency.

Maintaining Top Market Share

Center rider pallet truck* Survey by Crist Information & Research, LLC, 2014

Earning Recognition for TOYOTA andRAYMOND Brands
Proactively Launching New Products

Service Skills Contest

Toyota expanded its product offering with its 8-Series
Stand-Up Rider delivering improved performance, reliability
and ergonomics with significantly less frequent service
intervals. Toyota also unveiled an extended hand pallet truckline with specialty models to provide one of the mostcomprehensive offerings of pallet jacks in the industry.

In fiscal 2015, Toyota Industrial Equipment Mfg., Inc. (TIEM/
Columbus, Indiana), a consolidated subsidiary that has
manufactured TOYOTA-brand lift trucks since 1990, marked
a manufacturing milestone with the cumulative production ofits 500,000th lift truck.

Steadily Increasing Unit Sales in a Solid
MarketIn February 2015, Toyota Industries started a feasibility testof its FC lift truck in the international cargo area of KansaiInternational Airport. This test is conducted as part of the“Hydrogen Grid Project,” a pilot project undertaken by New
Kansai International Airport Co., Ltd. It aims to become
Japan’s first airport to make extensive use of hydrogenenergy at airport facilities. By participating in this feasibility
project, we will promote the development of practicalapplications of FC lift trucks to facilitate their broader use.

500,000th lift truck celebration

8-Series Stand-Up Rider

Raymond also introduced the Raymond Courier Model
3010 center rider pallet truck and the Raymond Courier
Model 3020 tow tractor automated lift truck. These
automated lift trucks offer the flexibility to operate manually
as a standard Raymond lift truck or scheduled to perform on
their own depending on the customer’s needs.

FC lift truck

38

Toyota Industries Report 2015

Raymond celebrated the 75th anniversary sinceobtaining the patent in 1939 for innovative products
such as a hydraulic hand pallet truck. These
innovations revolutionized the materials handlingindustry at that time. Raymond continues to this day todevelop products under the banner of “innovation.”

European Market

Starting Feasibility Test of FC Lift Truck(See Special Feature 1 on pages 26–29 for details.)

T OPIC

Materials Handling Equipment / Logistics

The North American lift truck market expanded in 2014 on
the back of a strong economy. Toyota Industries remained
the market share leader* in 2014 with combined unit salesof TOYOTA and RAYMOND brands of approximately 73,000
units, up 10% from the previous fiscal year.
Toyota, as a full-line supplier of lift trucks, remained themarket share leader* for the 13th consecutive year, andRaymond continued to hold its number one* market shareposition in narrow aisle electric lift trucks.

Business Activities

To further upgrade services to customers, we held the 3rdService Skills Contest in November 2014, in which a
service representative from the 40 dealers across Japan
participated. Through this contest, we aim to improve ourservicing capabilities and raise awareness among service
staff in order to provide services that bring even greater
satisfaction to customers.

North American Market

For the fourth consecutive year, Toyota ranked number
one in such areas as fewest safety-related incidents andmost affordable to maintain in terms of safety in a study
conducted by the Peerless Research Group on Lift Truck
Safety. In another study by the same group, Toyota lift trucks
ranked number one for the 10th year in a row for quality,
value and lowest cost of ownership.
Raymond has adopted the Toyota Production System(TPS) and continuously carried out improvement activities
taking a proactive approach. In fiscal 2015, in recognition ofthese activities, IndustryWeek named Raymond a 2014 Best
Plant Award winner for the plant and headquarters inGreene, New York. In addition, Raymond received a numberof recognitions from various organizations for its efforts in
job creation, human resources development, environmental
commitment and other areas.

Although European economies registered mild growth, thelift truck market expanded from the previous year. Amidthese conditions, Toyota Industries posted sales of 68,000
units, up 16% from the previous fiscal year, and improved its
market share.

Actively Introducing More New Products
Toyota Industries proactively launched a series of new
products to meet various customer needs. In 2014, we
introduced the Toyota Tonero, a 3.5- to 8.0-ton capacity
diesel engine lift truck boasting high environmental
performance thanks to its new engine. In addition to theconventional torque converter transmission, we added anelectronically controlled hydrostatic transmission (HST) to
our lineup. The Tonero HST, which makes the simultaneous
operations of materials handling and driving easy, received apositive response from the market. As for the BT brand, welaunched the BT Levio P-series of powered pallet trucks
with exceptional operational and energy efficiency as well as
the BT Reflex RRE B-series of entry-level reach trucks
specifically designed for straight forward applications. In thesolutions area, a new edition of the Toyota I_Site system for39

Toyota Industries is committed to delivering high-quality
materials handling products and services. At the same time,
we will strive to further expand our market share in Europe
by making proposals for logistics solutions closely optimized
for each customer.

In January 2015, to create added value for our Asiancustomers, the Asia Regional Office in Singapore, which had
engaged in market surveys and supported marketing
activities for distributors in Asia, was replaced with an
officially established company, Toyota Material HandlingMarketing Asia Pacific Pte. Ltd. (TMH-MAP). TMH-MAP willcontinue the functions of the regional office but also
reinforce sales and marketing support to distributors in Asia,
for example, by holding product training, supporting global
key account business and helping with value chain
enhancement.
In the Middle East, the regional office in Dubai has been
supporting distributors in Africa and the Middle East from awarehouse truck perspective. In April 2014, the regional
office began providing support for counterbalanced lift
trucks as well. Through this expansion of functions, theregional office will serve as a stronger hub for distributors in
the region, carrying out various tasks such as collecting
market information and organizing regional conferences andtraining programs.

Toyota Tonero

truck and fleet management, which has earned high acclaim
from customers, was released. The upgraded systemenables distributors and customers to ascertain andmanage themselves the operational status of each truck inreal time using tablets and similar devices. We also provide
the Toyota Service Concept (TSC) for unique, forwardthinking lifetime support, including dispatching service
personnel and receiving orders for replacement parts online
underpinned by our reliable technologies.

T OPIC
Receiving High Praise from External
Organizations
Our Toyota I_Site and Toyota Traigo 80 were the big
winners of the International Forklift Truck of the Year(IFOY) Award. The Toyota I_Site is an intelligent fleet
management system that provides support for
improving the machine availability rate and facilitating
safety- and environment-conscious operations, and the
Toyota Traigo 80 is an electric lift truck reputed forreliable and energy-efficient performance. These
products were comprehensively and highly evaluated interms of innovative quality, technology, design,ergonomics, handling, safety, cost effectiveness,sustainability and other factors.

ALOMA* and Chinese Markets
Sales Promotion Initiatives
Increasing Unit Sales through Proactive Sales
and Marketing Activities
Toyota Industries covers the ALOMA markets of Asia, Latin
America, Oceania, the Middle East and Africa as well as the
Chinese market. We are serving these markets with a lineup
consisting of TOYOTA, BT and RAYMOND brands.
Even though there were disparities among countries andregions in 2014, unit sales in the ALOMA lift truck market asa whole were on par with the previous year. The Chinese lift
truck market, however, registered growth. Through ourefforts in implementing sales and marketing activities, annual
sales in fiscal 2015 reached 42,000 units, an increase of
17% compared with the previous fiscal year.
*A LOMA is a Toyota Industries term for Asia, Latin America, Oceania, Middle East
and Africa.

Carrying Out Sales Expansion Activities inMarkets with Potential for Sustainable Growth
The ALOMA and Chinese markets are expected to sustain
growth for the foreseeable future. In this market climate,
we will continue to promote sales expansion activities by
providing products closely matched to local market needs,
further improving after-sales services, creating an even moreenhanced sales network and pursuing economic
competitiveness in terms of product lifecycle.

T OPICBT Reflex

Toyota Industries proactively attends various exhibitions topitch its full-line products and excellent servicing capabilities
directly to customers. In June 2014, we exhibited our richlineup of products and logistics solutions at CeMAT
Hannover in Germany.
Despite an unstable market situation in 2014, Toyota
Material Handling Russia (TMH RUS), Toyota Industries’
wholly owned sales subsidiary, carried out an array ofcustomer-oriented sales expansion activities, which
culminated in receiving a large order from a leading foodretailer in Russia.
In the Czech Republic, we held a demonstration event
and welcomed numerous participants, directly appealing ourbroad-ranging product lineup and logistics solutions. In thisway, we carried out various local sales and marketing
activities.

In China, Toyota Industry (Kunshan) Co., Ltd. (TIK)
commenced production of 3.5- to 8.0-ton capacity 8-Series
lift trucks in June 2014. These new internal-combustion lift
trucks are not only sold in China but also exported to the
ALOMA and European markets. TIK will further expand its
role as a crucial supply base of TOYOTA-brand lift trucks.
On the sales side, Toyota Industries will continue to enhance
the sales structure of Toyota Material Handling (Shanghai)Co., Ltd. (TMHS) in its efforts to further strengthen sales andservice networks in key regions.

Materials Handling Equipment / Logistics

Initiatives in Growing Markets

Business Activities

Further Expanding Market Share in Europe

Regional conference in Dubai

In Brazil, Toyota Material Handling Mercosur Indústria eComércio de Equipamentos Ltda (TMHM) commenced
production of electric lift trucks from April 2015 tocomplement the already existing production of internalcombustion lift trucks. The enhancement of the productlineup will be a major enabler for responding broadly tocustomer demand while facilitating a greater presence in theBrazilian market.
In Australia, Toyota Material Handling Australia Pty
Limited (TMHA) is striving to ramp up sales activities. TMHA
completed the project to cover the entire Australian region
with fully captive sales, service and rentals branch
operations in 2014. In addition, TMHA has started a rental
finance service. TMHA will continually make efforts to meetcustomer needs not only by providing equipment but also
by enhancing the value chain.

In May 2014, Toyota Industries held a Sales &Marketing Conference in Hannover, Germany, with 88
representatives from Toyota, BT and Raymond
distributors spanning 39 countries in attendance. The
conference signified the launch of two new models, theBT Reflex S-series and BT Levio P-series. In addition,
seminars and workshops were held to share the latest
developments in products, services and technology
solutions offered in the ALOMA markets. The
conference attendees also received a guided tour of
our exhibit at the CeMAT fair, confirming products andservices through genchi genbutsu (go and see foryourself).

Sales & Marketing Conference

Product demonstration event in the Czech Republic

40

Toyota Industries Report 201541

Materials Handling
Equipment / Logistics

Toyota Industries offers customers highly advanced,
efficient logistics services to respond to their diverse
needs, including consigned operation of distribution
centers; land transportation services; cash collection anddelivery and cash proceeds management services; anddata storage, management, collection and delivery
services.

Business Overview in Fiscal 2015
Both the logistics services business and the landtransportation services business for automotive parts
increased. As a result, net sales in ﬁscal 2015 increased¥2.7 billion, or 3%, over the previous ﬁscal year to¥98.0 billion.

Land Transportation Services
The Taikoh Transportation Group provides landtransportation services under consignment from many
automotive parts manufacturers. The group collects finishedparts from manufacturers, compiles them by theirHigh Value-Added Services Including Cash
Collection and Delivery and Cash Proceeds
Management and Data Storage, Management,Collection and DeliverynC ash Collection and Delivery and Cash Proceeds
Management
Asahi Security Co., Ltd. provides cash collection anddelivery and cash proceeds management services
throughout Japan on a 24/7 basis to about 2,900
customers mainly in the retail sector, service industries, post
offices and financial institutions.
In addition to cash collection and delivery services
tailored to each customer’s specific needs, Asahi Security
offers comprehensive services that include management ofgift certificates and accounting operations at customers’
retail outlets. Furthermore, the company provides security
services integrating the monitoring by security devices anddispatch of security guards on a 24/7 basis. By providing
these comprehensive services, Asahi Security aims tobecome a unique, distinctive company in the primary field of
cash collection and delivery and cash proceeds
management services.
Asahi Security operates 19 cash collection and delivery
centers and 14 logistics sites from Hokkaido to Okinawa
Prefecture, thereby setting up a system to respond to
customer needs throughout Japan. In fiscal 2015, thecompany reinforced its network by establishing new logistics

Asahi Security Co., Ltd.’s cash collection and delivery andcash proceeds management services

sites in Yamagata, Fukushima, Shiga and Wakayama
prefectures.
At each business base, Asahi Security conducts regulartraining on its own as well as emergency training jointly withlocal police departments in order to provide safe and trusted
services to customers.
nD ata Storage, Management, Collection and
Delivery
Wanbishi Archives Co., Ltd. provides support to about
4,000 companies and organizations, including large financial
institutions and government agencies, to ensure the security
and efficient use of their information assets. Under its robust
security structure, Wanbishi Archives offers a comprehensive
range of services covering the entire lifecycle of criticalinformation assets in electronic, paper or other forms, fromstorage and utilization to destruction. These services allow
customers to reduce risks, achieve higher businessefficiency, and ultimately, to focus on their core businesses.
In the wake of the Great East Japan Earthquake, there
has been an ever increasing awareness toward placing
importance on effective business continuity management(BCM), and Wanbishi Archives has undertaken various
initiatives tailored to such needs. With the use of so-called
big data beginning to become more pervasive andcompanies and organizations now becoming more
conscious in terms of compliance and litigation, the volumeof data handled by them has been growing at an explosive
pace. While cloud services are gaining impetus owing to low
initial costs, ease of use and flexibility as a means to protect
such data, there has been a renewed interest in the use of
fault-tolerant, cost-effective magnetic tapes for long-term
data storage. Wanbishi Archives is responding to the needfor ensuring the security of their information assets byadopting various data storage forms and technologies.
Outside Japan, Wanbishi Archives’ subsidiary in China
provides services to local companies as well as Japanesecompanies doing business in China. Capitalizing on its
experience and know-how accumulated in Japan, Wanbishi
Archives will continue to accelerate its efforts to capturebusiness opportunities in growth markets.

Materials Handling Equipment / Logistics

Toyota Industries operates distribution centers for various
industries and customers. During ﬁscal 2015, operation ofexisting distribution centers generated a relatively steadylogistics volume. In this environment, we strived tostrengthen our proﬁt structure through cost improvement
activities undertaken at logistics sites based on the thinking
embodied in TPS and simultaneously worked to enhance
the level of services to customers.
With an aim of optimizing the entire supply chain of eachcustomer’s logistics, we continue our proactive sales
activities by making proposals that leverage the maximum
use of the Toyota Industries Group’s resources incollaboration with the Materials Handling Engineering
Business. In fiscal 2015, we started operating five additional
distribution centers for customers mainly in the medical andpharmaceutical industries. In total, we now operate 18
distribution centers under consignment.
Looking ahead, we will continue to facilitate ourproactive sales activities for both increasing orders fromexisting customers and acquiring new customers inindustries having high growth potential.

destination and delivers to automakers “what is needed,when it is needed and in the quantity needed.”
During fiscal 2015, favorable business conditions in theautomobile industry, our principal customer, primarily
generated a steady logistics volume in the transportation of
automotive parts.
Under these circumstances, we continued to conductvarious profit improvement activities, including the promotionof efficient cargo transport, while at the same time
aggressively undertaking activities to ensure safe andenvironment-conscious operations.
We will continue to further reinforce our sales activities
to capture new customers and, ultimately, to expand
business operations.

Business Activities

Logistics

Planning, Design and Operation of Distribution
Centers

Wanbishi Archives Co., Ltd.’s data storage, management,collection and delivery services

Taikoh Transportation Co., Ltd.’s land transportation services

42

Toyota Industries Report 201543

Automobile

Plastic Glazing Panoramic Roof for the Prius a(Prius v in North America and Prius + in Europe)

VehicleBusiness Overview in Fiscal 2015
In the automobile industry, despite the sluggish
Japanese market, increased sales in China and North
America and a recovery in Europe served to drive
continued growth in the global market.
In fiscal 2015, an increase in sales of the RAV4 wasoffset by a drop in sales of the Vitz (Yaris outside Japan),and unit sales declined by 20,000 units, or 6%, from theprevious fiscal year to 308,000 units. Net sales were
down ¥8.0 billion, or 2%, to ¥459.0 billion.

Vehicle Sales(Thousand units)

350

Toyota Industries engages in production of a panoramic roof
made of plastic glazing for the Prius a, a hybrid vehicle
released by TMC in May 2011. The roof is currently astandard feature of Prius + vehicles marketed in Europe.
This product retains the beautiful surface quality typicalof a glass roof yet is approximately 40%* lighter than its
glass counterpart, improving vehicle fuel efficiency and thus
contributing to the reduction of CO2 emissions.
Toyota Industries will continue to develop attractive new
products that leverage the distinctive characteristics ofplastic glazing.
* Survey by Toyota Industries Corporation“Our Vitz and RAV4” Initiative for Enhancing
Appeal of the Two Car Models
As the sole producer of the Vitz in Japan and with the aim ofturning the vehicle into a long-selling series, Toyota
Industries collaborates with TMC and its dealers to makevarious suggestions under the banner “Taking the Lead in
Making Our Cars More Attractive.” Similarly, to boost theappeal of the RAV4, we plan and develop special-edition
vehicles that directly reflect the voice of our customers.

Development of Electric Vehicles (EVs)Integrating Energy-Saving, Electrificationand Lighter-Weight Technologies
Toyota Industries also undertakes development of nextgeneration EVs based on the 3Es (Energy, Environmental
protection and Ecological thinking). Rather than convertinginternal-combustion vehicles into EVs, which has been awidespread practice among automakers, we have created a
dedicated platform that makes the most of the distinctive
characteristics of EVs and have been conducting feasibility
tests on prototype vehicles.
In the future, we will accelerate the development of EVs
and propose new, EV-specific vehicle packages.

200
150
100
50

(See Special Feature 2 on pages 30–34 for details.)

Business Overview in Fiscal 2015
Unit sales in fiscal 2015 declined 58,000 units, or 9%,
from the previous fiscal year to 568,000 units due mainly
to decreases in sales of KD diesel engines and AR
gasoline engines. Net sales dropped ¥10.5 billion, or
5%, from the previous fiscal year to ¥192.0 billion.

GD diesel engine

Developing Competitive Diesel and Gas/
Gasoline Engines in Non-Automotive Fields
Engine Sales(Thousand units)

700
600
500
400
300
200

0

250

Toyota Industries’ diesel engines, fitted in a variety of Toyota
vehicles sold around the world, have gained high market
recognition for their cleaner emissions, greater fuel efficiency
and higher performance. The V-type 8-cylinder VD diesel
engine is installed in the Land Cruiser selling particularly wellin Australia, Russia and the Middle East. As a successor
model of KD diesel engines, we commenced production of
GD diesel engines in June 2015. These engines, which areinstalled in TMC’s Land Cruiser Prado and other vehicles,
are equipped with a turbocharger, for which we participatedin the development and started production in-house, andboast significantly higher performance.

Engine100

300

Toyota Industries’ Diesel Engines Highly
Acclaimed by Customers Worldwide

Automobile

In recognition of Toyota Industries’ comprehensive strengths
in vehicle quality, delivery, cost and safety as the highest
among all Toyota-affiliated automobile body manufacturers,
from Toyota Motor Corporation (TMC) we have received anaward for excellence under the Toyota Quality Control Award
program for three consecutive years. In the face of theshrinking automobile market in Japan, we are further
strengthening our already superior level of safety, theenvironment, quality, cost and delivery (SEQCD). We also
are working to leverage our ability to quickly start up
production and a flexible structure in terms of vehicle
models and production volume to contribute to productionin Japan of Toyota vehicles.

Through these endeavors, we seek ways to create more
appealing and satisfying vehicles for customers worldwide.
At the same time, we also undertake activities to expand
our customer base by enhancing the appeal of the Vitz
through our support to motorsports events.

Business Activities

In the fields ranging from vehicle assembly to engines,
car air-conditioning compressors and car electronics,
Toyota Industries continues to meet the expectations
and trust of its customers.

Highest-Level SEQCD to Contribute to
Production of Attractive Toyota Cars

(FY)

11

12

13

14

15

Toyota Industries’ engines are highly renowned for their
excellent environmental performance in non-automotive
fields as well. These engines are used for a wide variety of
applications, including our lift trucks, and adopted by GHP*1
manufacturers in Japan and CHP*2 manufacturers
worldwide.
We expanded our lineup of industrial engines with theaddition of the Toyota 1KD industrial diesel engine, which isequipped with a turbocharger developed in-house, and the
Toyota 1FS gas/gasoline engine in March 2013, followed in
December 2013 by the Toyota 1ZS also equipped with aturbocharger developed in-house.
These three new engines offer downsized displacementcompared with conventional models with equivalent output,
which results in higher fuel efficiency, cleaner emissions anda reduction in size.
In June 2014, the Toyota 1KD received a Logistics

Overall victory in the Japanese Rally Championship
0

44

(FY)

11

Toyota Industries Report 2015

12

13

14

15

45

*1: Short for gas heat pump; air conditioner driven by a gas engine*2: Short for combined heat and power; co-generation system*3:	Award program to promote environmental conservation and environmental awarenessin the freight industry and recognize organizations/companies and individuals which/
who have contributed to achieving sound industrial growth

Car Air-Conditioning Compressor

Business Overview in Fiscal 2015

ESA34 compressor (electric type)

Compressor Sales

Automobile

In fiscal 2015, unit sales of car air-conditioning
compressors rose 3.84 million units, or 15%, over theprevious fiscal year to 29.32 million units as a result of
an increase in sales in North America and China despitea decline in sales in Japan. In January 2015, cumulative
production in Japan exceeded 300 million units. Net
sales rose ¥48.9 billion, or 18%, over the previous fiscal
year to ¥324.6 billion.

Company, Volkswagen and Honda Motor Co., Ltd. Looking
ahead, we will accelerate our efforts to expand sales toautomakers in Japan, the United States and Europe.

simultaneously offers greater fuel efficiency and a reduction
in weight, and it has been adopted by TMC in its Corolla, as
well as by Daimler AG, General Motors Company (GM),
Volkswagen AG and Hyundai Motor Company.
As for fixed-displacement type scroll compressors forlight and compact vehicles, we developed the SCSE series
and started supplying the product to Daihatsu Motor Co.,
Ltd. and GM. We reduced the number of parts used andincreased the precision of functional components, thereby
successfully attaining lighter weight and quieter operation.

Business Activities

Environmental Technology Development Award in the 15th
Logistics Environmental Awards program*3 sponsored by
the Japan Federation of Freight Industries. In January 2015,
GENEO lift trucks equipped with either the Toyota 1KD or
Toyota 1ZS engine won a Best 10 New Products Award for2014 sponsored by The Nikkan Kogyo Shimbun, Ltd..
These awards reflect the high recognition given to theenvironmental performance of our engines.

Creating Experimental Facilities In-House
That Replicate More Realistic Vehicle
Environment(Million units)

30
25
20
15
10
5
0

(FY)

11

12

13

14

15

Toyota 1KD industrial diesel engine

Aiming to Bring Satisfaction to More
Customers
In November 2014, TMC and Toyota Industries agreed togradually consolidate diesel engine development andproduction functions into the operations of Toyota Industries.
Prior to this decision, Toyota Industries has been
carrying out development of next-generation automobile
engines that can clear Euro 6 and other stringent emission
standards, as well as engines for materials handlingequipment and general purposes featuring greater fuelefficiency and lower costs. Taking this opportunity, we will
step up our efforts to achieve shorter development cycles
with improved efficiency in order to develop and produce
diesel engines with greater competitiveness.
For our general-purpose engines, we will plan, develop
and produce a lineup of products matched to customers’
needs while actively promoting sales activities.

46

Toyota Industries Report 2015

In the conventional way of simply developing and evaluating
car air-conditioning compressors alone, we can only capture
certain properties and may not be able to meet customer
needs sufficiently. To counter the situation, we started
creating our own experimental facilities in-house that canreplicate a more realistic vehicle environment. By doing so,
we can respond to customer needs more precisely andquickly while clearly clarifying our outstanding productstrengths through more accurate product evaluation. The
creation of experimental facilities internally also enables us toplace our original technologies in a “black box” and prevent
external leaks of our know-how and expertise. To further

SCSE06 compressor (fixed-displacement scroll type)

Development Efforts Based on 3Es(Energy, Environmental Protection and
Ecological Thinking)More stringent fuel efficiency standards have been enforcedin North America, Europe, Japan and China, requiring
automobiles to provide extremely high fuel efficiency
performance.
Against this backdrop, in the field of car air-conditioning
compressors to be fitted in internal-combustion vehicles, theneed for fuel-efficient models is growing for both fixed- andvariable-displacement type compressors. In North America,
in particular, the shift from a fixed-displacement type to avariable-displacement type gained further momentum.
In response, we are concentrating on development ofa variable-displacement type compressor with considerably
greater fuel efficiency while also focusing on an optimum
balance between performance and prices of fixeddisplacement typeproducts targeting
emerging
countries.
In the field ofvariabledisplacement typecompressors, wedeveloped the SES
series that
6SES14 compressor (variable-displacement type)

Since initially being installed in the second-generation
Prius, our electric compressors for hybrid vehicles (HVs) andEVs have been fitted in all of TMC’s HVs from the thirdgeneration Prius to the LS600h.
To offer attractive products to the growing number of
automakers worldwide now actively engaged in thedevelopment of HVs, we developed the ESA series, which iseven more compact and fuel efficient. In addition, a change
in its structure makes it easier to mount on vehicles. The
ESA series has been installed in HVs of Ford Motorn Worldwide Bases of Car Air-Conditioning Compressors (As of March 31, 2015)

TDDK
DNDE

Germany

Germany

YST

DICH

MACI

China

China

U.S.A.

DIAM

U.S.A.

DSIT

Italy

TICO

DNTS

Japan

Italy
SUBROS

TACK

India

China

TACG

U.S.A.
TICA

U.S.A.

TACI

Indonesia

DNBR

BrazilConsolidated production bases

Licensed manufacturers

Technical service stations

Toyota Industries’ car air-conditioning compressors are widely adopted by automakers around the world, garnering the No. 1* position in global sales.
* Survey by Toyota Industries Corporation47

increase our competitive edge, we will launch this initiativeon a full scale at our bases in and outside Japan.

Net sales of car electronics products grew steadily due
primarily to solid sales of products for the Toyota Prius,
Aqua (Prius c in North America and Yaris Hybrid in
Europe) and other HVs.

Expanding Experience and Role in ElectricPowered Vehicle Field(See Special Feature 1 on pages 26–29 for details.)

Toyota Industries develops and produces electronic
components and devices for electric-powered vehicles,
including HVs, plug-in hybrid vehicles (PHVs), EVs and fuelcell vehicles (FCVs). In addition to TMC, we are pursuingbusiness expansion to other automakers in and outside
Japan.

Auxiliary Power Source Devices

Local design operations at MACIA DC-DC converter converts the high voltage of HV
batteries to a lower voltage level suitable for operating lights,
wipers, horns and other auxiliary devices. Since being first
fitted in the first-generation Prius, we have been constantly
working to reduce the product size and weight.

Establishing Optimum Global Production and
Supply Structures
To respond to growing demand for variable-displacement
type compressors triggered by the anticipated enforcementof more stringent fuel efficiency standards, we areproceeding with augmentation of corresponding production
capacities and commenced local production of key
functional parts at our production bases in North America.
In Europe, the ASEAN countries and China as well, weare expanding production capacities and increasing the ratioof locally procured parts to accommodate growing demandfor car air-conditioning compressors.
In increasing our production capacities at these bases,
we have introduced more compact production lines andestablished an efficient production structure that can flexibly
respond to production volume fluctuations. In the future, wewill use these compact production lines as a model andgradually install them in other production bases in andoutside Japan.

48

Toyota Industries Report 2015

Core Components for Drive Systems

Charging Infrastructure
Jointly with Nitto Kogyo Corporation, we developed publicuse charging stands and home-use charging units for PHVs
and EVs. These chargers are being sold in the market.
In May 2015, we announced the release of a new publicuse charging stand and exhibited the product at Automotive
Engineering Exposition 2015. The new charging standconsists of one parent unit that offers charging functionality
as well as such features as communication, IC card-baseduser authentication and billing, and multiple low-cost,charging-only child units. Besides the existing model’s
features, the parent unit has an additional capability tocontrol up to 10 child units, thereby reducing the initial costs
of installing multiple charging stands.
We are positioning this new charging stand as astandard model of the charging infrastructure and will strive
to enhance its functionality and our service lineup to ensurethat we continue to satisfy customer needs.

Automobile

We station our sales engineers in the United States,
Germany, Italy, China and Brazil and provide technicalsupport locally. Through these technical support efforts, we
promote sales expansion and activities to prevent quality
issues from occurring.
In fiscal 2014, two of our consolidated subsidiaries,
namely, Michigan Automotive Compressor, Inc. (MACI) in the
United States and TD Deutsche Klimakompressor GmbH(TDDK) in Germany, began to conduct design operations
locally. By designing products locally, we help automakers
reduce development lead time.

Business Overview in Fiscal 2015

commencing production in 1995, we have achieved
cumulative production of 14 million units in March 2015.
We have developed an on-board charger based on our
technologies and cultivated know-how regarding EV
chargers developed since the 1990s. The resulting on-board
charger is fitted in the Prius Plug-in Hybrid.
In addition, we develop and produce inverters for electric
car air-conditioning compressors for HVs and other electricpowered vehicles. These inverters have been contributing toincreasing the product appeal of our car air-conditioning
compressors.
We have also leveraged our inverter technologies related
to electric car air-conditioning compressors and successfully
developed a highly efficient, low-cost inverter for hydrogen
circulation pumps. The new inverter has been adopted in
TMC’s MIRAI FCV.

Business Activities

Augmenting Technical Support Capabilities

Car Electronics

Since 1967, we have been providing inverters for materials
handling equipment and accumulating a pool of powerelectronics technologies.
Utilizing such technologies, Toyota Industries applied its
proprietary direct-cooling method to develop a device withsignificantly higher cooling performance in 2009. We haveentered the field of core components for drive systems suchas power control units (PCUs) for the third-generation Prius.
In addition to inverters for drive systems utilizing thisdirect-cooling method, we have developed a powertrain unit
for EVs and other core components. For the powertrain unit
for EVs, we integrated designs of functional components,
such as an inverter, motor and reduction gears, into one
package and successfully reduced the size and weight. By
integrating hardware with an electronic control unit (ECU),
including control software, we are working to increase theadded value as an entire system.
Parent unit

Child unit

New charging stand for PHVs and EVs

Accelerating Development Activities toContribute to Low-Carbon Society

DC-DC converter fitted in the Aqua

Leveraging our technologies accumulated in the field of
DC-DC converters for HVs, we successfully developed andcommenced sales of a DC-DC converter for use with startstop systems, which can suppress a voltage drop at thetime of engine restart, and have been promoting its sales toautomakers.
A DC-AC inverter is equipped to use home electric
appliances in a vehicle, and has drawn a great deal of publicrecognition for its use as an emergency power source
following the Great East Japan Earthquake. Since

Powertrain unit for EVs

As many countries adopt regulations requiring high energy
efficiency, electrification is expected to become morewidespread not only for automobiles but also for materials
handling equipment and other non-automotive products.
Targeting the high-growth, electric-powered vehicle market,
we will accelerate our development efforts to enhance our
products in the fields of HVs, EVs, PHVs and FCVs whileworking to reinforce our production structure, thereby
contributing to a low-carbon society.

49

Textile Machinery
Based on the philosophy of founder Sakichi Toyoda,
which reflects his strong commitment tomanufacturing, Toyota Industries responds to a broad
range of needs with its extensive product lineup, fromair-jet looms, for which we enjoy the world-leading
market share*1 in unit sales, to ring spinning frames
and roving frames.
*1: Survey by Toyota Industries Corporation

Business Overview in Fiscal 2015
The textile machinery market remained stagnant as
economic growth slowed down in China and emerging
countries in Asia. Despite an increase in sales of yarn
quality measurement instruments, unit sales of air-jet
looms declined 3,500 units, or 38% year-on-year, to 5,800
units. Net sales were down ¥5.0 billion, or 7%, from theprevious fiscal year to ¥68.1 billion.
Air-Jet Loom Sales

India, commenced in October 2014 production of the
RX300 ring spinning frame to be exported throughout theworld. Producing the RX300 in India, which is one of the twolargest spinning machinery markets in the world, enables us
to be closer to our customers, thereby contributing toenhancing our services and improving logistics efficiency.

Participation in ITMA ASIA + CITME 2014
In June 2014, Toyota Industries participated in ITMA ASIA +CITME 2014, one of the largest textile machinery tradeshows in Asia. The event was held in Shanghai, China, oneof the world’s largest textile markets, with 1,556 companies
participating from 28 countries, including China, India and
Bangladesh, and the attendance of more than 100,000
visitors. At this exhibition, we displayed our JAT810 air-jet
loom, the TCO12 comber and various other products andappealed the excellence of these products’ basic
performance and reliability. We also demonstrated thecapability of the RX300 high-speed ring spinning frame to
produce a new spun yarn called mosaic yarn*2 and received
favorable feedback from many visitors.
Through participation in these exhibitions, we willcontinue to appeal our excellent technological capabilities
and environmental performance in our efforts to earn ahigher level of customer trust. We also aim to meetcustomer expectations by developing textile machinery that
produces even higher value-added textile products throughthe pursuit of advanced technologies and continuous
creativity and ingenuity as
well as by providing
meticulous after-sales
services via an enhanced
service structure.
*2: A new type of yarn developed by
Toyota Industries, which is made byjoining normal roving yarns andchopped roving yarns, offering aconsiderable degree of freedom in colorand design choices(Thousand units)

10
8

ITMA ASIA + CITME 2014

Relationship with Stakeholders

Relationship with Our CustomersP

52− 53

Relationship with Our Business Partners

P

54

Relationship with Our Shareholders and Investors

P

55

Relationship with Our AssociatesP56− 58Relationship with Our Local CommunitiesP

59− 60

6

T OPIC

4
2
0

(FY)

11

12

13

14

15

Business Development of Weaving andSpinning Machinery
In the field of weaving machinery, we introduced an
improved electronic shedding device to our JAT810 air-jet
loom, for which we enjoy the world’s top market share. This
shedding device serves to increase textile variations byenabling the weaving of fabrics with complex patterns.
In the field of spinning machinery, Kirloskar Toyota Textile
Machinery Pvt. Ltd. (KTTM), a consolidated subsidiary in

50

Toyota Industries Report 2015

Acquisition of Jossi Systems AG to
Reinforce Product Appeal
Uster Technologies AG, a Swiss-based consolidated
subsidiary producing yarn quality measurement
instruments, acquired Jossi Systems AG, a Swisscompany developing and producing systems forcleaning cotton and removing contaminating materials
in the spinning process. By making Jossi Systems into
its subsidiary, USTER has become the world’s only
manufacturer capable of managing cotton cleaning andcontaminant removal throughout the entire spinning
process. In the future, USTER will leverage thestrengths of Jossi Systems to further strengthen its
position as the world-leading manufacturer of yarn
quality measurement instruments.

51

Relationship with Our Customers
Adhering to a quality first approach, Toyota Industries strives to realize monozukuri (manufacturing) that quickly
responds to the diverse, ever-changing needs of customers.

n Types of Quality Sought by Toyota Industries

ent
em
nag
it y
g
Ma lity
ual
q
turin
qua
ufac
ting
Man lity
r ke
Ma
qua

Quality levels that
customers truly
expectProduct quality●Safety●Eco-friendliness●Durability●Ease of use

Designquality●Brand strength●Corporate image●Sales●Service●Logistics●Workmanship

Manufacturing capabilities

52

Toyota Industries Report 2015

n Company-Wide, Horizontally Aligned Quality Assurance Activities

Activities Based on the Quality Guidelines
Quality forms the basis of our operations and is essential inattaining the goals of our Vision 2020. As such, weformulated our Quality Vision 2020, which deﬁnes ourphilosophy in ensuring quality.

Quality Functional Meeting
Quality Confirmation and Defect Prevention Meeting

To achieve the goal of this vision, we issue the Quality
Guidelines, which identify priority quality-related issues to be
implemented in each ﬁscal year, to all production bases inand outside Japan. The implementation status of theseguidelines is reviewed by top management at the Quality
Functional Meeting and the Quality Conﬁrmation and DefectPrevention Meeting, both chaired by the head of the
Production Headquarters*, for identifying additional issues
and devising countermeasures. Issues raised are followed
up at meetings of the Company-wide Council of Heads of
Quality Assurance Departments chaired by a quality control
department head*. The president also checks on theoutcome of these activities through genchi genbutsu (goQuality inspection by top management

Mar. 2014

Automotive SPICE, Capability Level 3
Automotive electric/electronic systems sector

Dec. 2014

ISO 26262, ASIL*2-D (highest safety level)
Certification for functional safety softwaredevelopment process*1: Short for Software Process Improvement and Capability dEtermination, SPICE is astandard process for automotive software development.
*2: Short for Automotive Safety Integrity Level

Providing Support to Business Partners

Company-wide Council of Heads of Quality Assurance Departments

Materials
Handling
Equipment

TextileMachinery

Compressor

Development of new productsElectronics

VehicleEngine•Activities to improve DR standards

Prevention of occurrence and recurrence •Working-level Committee for Recurrence Prevention

Quality Vision 2020
All members in the Toyota Industries Group
place utmost emphasis on quality ﬁrst andcontinuously supply attractive products/services
that anticipate global customers’ needs.

Automotive SPICE*1, Capability Level 3
Car air-conditioning compressors sector

Quality Vision

Quality Guidelines“We should express our gratitude to ourcustomers by providing them our best quality
products.” (from Toyota Industries’ Quality Guidelines)
Placing top priority on our “Customer First” philosophy,
Toyota Industries undertakes product development thatmeets customer expectations.
At Toyota Industries, development of a new productentails deﬁning speciﬁc goals to incorporate quality in every
stage from product planning and design to production
preparation, production, sales and after-sales services. We
perform a design review (DR), which allows a product toproceed to the next stage only when a responsible businessdivision head examines and approves whether the producthas reached the target quality level.
Should a defect occur after the product launch, the* As of March 31, 2015

Jul. 2012

Quality assurance by business partners•Quality audit at business partners

Product safety and reassurance•Product Safety Promotion Committee

Human resources development•Education on statistical quality control (SQC),
QC Circle Promotion Committee

Initiatives to Ensure Product Safety
In order to meet customers’ expectations for safety andreassurance, we have been promoting activities to minimizerisks at the development and design stage based on theassumption that customers make use of our products indiverse ways, including foreseeable misuse and use undermalfunctioning conditions.
We seek to raise the level of our Company-wide
activities by sharing each business division’s best practices
at the Product Safety Promotion Committee comprising
representatives from the engineering and quality assurance
departments.
Functional safety, in particular, has recently been gaining
increased significance as electronic control devices mounted
on automobiles and other vehicles are becoming moreadvanced and complex. Functional safety reduces the riskof hazards caused by these control systems to an
acceptable level by adopting appropriate functions ordevices.
We have been placing greater emphasis on functionalsafety as part of our efforts to strengthen our softwaredevelopment capabilities. In addition to external
certifications obtained previously, our functional safety
software development process is now certified under ISO
26262, an international standard for functional safety
management for automotive applications. Our process has
been recognized as meeting the highest level of safety
stipulated under the standard.

Improving the quality of our products requires joint quality
improvement activities with our business partners in andoutside Japan. For this reason, we collaborate with our
major business partners in upgrading their quality assurance
efforts. Specifically, we conduct an annual quality audit toidentify deficiencies and ensure effective improvement, andprovide quality-related education.
Responsible executives of Toyota Industries verify theoutcome of these activities through genchi genbutsu
inspections.
These activities enable our business partners to attainthe required level of quality assurance and establish aculture to foster quality assurance on their own.

Relationship with Our Customers

Carrying on the spirit of founder Sakichi Toyoda, Toyota
Industries strongly believes that quality is the lifeblood of acompany. Focusing on quality ﬁrst and ensuring customer
safety and reassurance are our most important
responsibilities to our customers and form the basis of ourapproach to corporate social responsibility (CSR).
Toyota Industries strives to maintain and improve thetotal quality of our corporate activities, which encompasses
not only “product quality” but also “marketing quality” and“management quality.” “Product quality” is embodied in thesafety, eco-friendliness, durability, ease of use andworkmanship of our products, while “marketing quality”
entails excellent sales and service in addition to these
attributes and “management quality” further enhances ouroverall corporate image and brand strength in terms of all ofthese attributes.

quality assurance departments of each business division
immediately devise necessary measures. At the same time,
a probable cause is identiﬁed from both technical andstructural aspects, and if deemed necessary, the new
product development system itself is reviewed to prevent a
recurrence in the successor model.

n Acquired Certification for Software Development Process

Relationship with
Stakeholders“A product should never be sold unless it has
been carefully manufactured and has beentested thoroughly and satisfactorily.”and see for yourself) inspections.
For critical quality issues, we enforce Company-wide,
horizontally aligned activities to prevent both recurrence inthe responsible business divisions and occurrence in otherbusiness divisions. Under these efforts, we havestandardized procedures to ensure the speciﬁed level ofquality and formulated related guidelines.

Promoting Human Resources Development
Toyota Industries provides systematic quality education to all
employees to help them acquire quality assurance skills
needed in actual operations. In the basic education
program, employees gain a perspective and learn theconcepts of quality control (QC), basic kaizen (improvement)
techniques and how to proceed with kaizen activities byutilizing our originally developed textbook that describes thequality assurance approach of Toyota Industries. Aftercompleting the basic program, they move on to practicaltraining tailored to the speciﬁc needs of their respective
workplaces.
Our production bases in China and India as well as
those in North America and Europe also promote kaizen
efforts and development of human resources through QC
circle activities.
We areworking toreinforce ourfoundation for
quality assurance based on
the belief that
manufacturing
starts withnurturing
excellent
QC circle activities at Kirloskar Toyota
personnel.
Textile Machinery Pvt. Ltd. (KTTM) in India

53

Relationship with Our Business Partnersn Japanese Subcontracting
Law Seminar Participants
Affiliated companies
Toyota Industries(Persons)
1,200

We aim to obtain an appropriate company valuation in stock markets through timely
and appropriate information disclosure while promoting good communications withshareholders and investors.

1,000
800
600

Promoting Human
Resources Development

To achieve open
procurement, we provide
fair and equal opportunities
to all potential business
partners.
We comprehensively
evaluate our business
partners based on such
Procurement page on our Website
factors as quality, price andadherence to delivery times. We also assess their initiatives
for safety, the environment and compliance as we strive forthe timely and stable procurement of excellent products atlower costs based on fair business transactions.

(FY) 1315
14
We proactively provide
procurement education both internally and externally. In
fiscal 2015, we provided education to 735 Toyota Industries
employees and 276 participants from affiliated companies.
To avoid non-compliance, we also
conduct a periodic inspection of
procurement-related departments.
Hoeikai, an organization of ourbusiness partners, serves as avenue for sharing more useful
Hoeikai QC circle convention
information and developing humanresources through the Toyota
Production System (TPS), QC
circles and other activities. We
provide support to TPS seminars
and autonomous study groups forleadership development.

Co-Existence and Co-Prosperity Based on
Mutual Trust
We work hard to realize co-existence and co-prosperity withour business partners based on mutual trust. Throughout
the year, we hold procurement policy meetings and quality
and technical skills training as well as provide guidance
directed toward kaizen at major business partners’
production sites.

Reducing Environmental Impact throughEnvironmentally Preferable Purchasing
In order to create environmentally friendly products, we aim
to procure parts, raw materials and equipment from business
partners that give sufﬁcient consideration to the environment.
Our Environmentally Preferable Purchasing Guidelines,
which we have formulated to enforce “green” purchasing,
apply not only to parts, raw materials and equipment but
also to packaging materials.
Along with environment-friendly products, we deliver
greater safety and reassurance to customers.

54

Toyota Industries Report 2015

200
0Autonomous study group

Business Continuity Plan (BCP) Activities for
Possible Major Earthquake
We engage in BCP-related activities in anticipation of amajor earthquake in Japan. To improve our preparedness forresuming the supply of products to customers at the earliest
possible opportunity in the event of a disaster, we aremaking concerted efforts with business partners to ensure
the stable supply of parts and raw materials during therestoration of production.
More speciﬁcally, we newly implemented training
determining the extent of damage in addition to seminars tocultivate a deeper understandingon the importance of disasterprevention and disaster mitigation
workshops (tabletop exercises)that help business partners
formulate and implement their own
Disaster mitigation workshop
mitigation plans.
n BCP Activities

Localization of Business for Good Corporate
Citizenship

Topic

FY2013

Action policy

Determining
current status

Scope of activities
Supply chain surveys
Activities

In view of increased local production outside Japan, we
promote procurement from local business partners in order
to contribute to the local community through consolidated
subsidiaries.

Basic Perspective

400

FY2014FY2015

Reinforcing disaster mitigation
Hoeikai (business partners)
Suppliers of major parts

Improving accuracy through periodic surveys

Earthquake workshops

Tabletop exercises

Disaster mitigation plans

Formulation and aggregation

Training for determining extent
of damage

Periodic training

Toyota Industries continually carries out timely andappropriate information disclosure for shareholders andinvestors. In this way, we raise management transparency
so that we obtain an appropriate company valuation in stock
markets. We provide not only information required under
disclosure laws and regulations but also information on ourmanagement policy and business activities. Also, we
engage in various investor relations activities to facilitate
productive dialogue with shareholders and investors andfeed back their comments to executives and relevantbusiness divisions to reﬂect them in our business activities.

from outside Japan
Vehicle assembly plant tour hosted byrequesting a meeting, we
Toyota Industries (Dec. 2014)
visit some of them toexplain our management policies and business overview.
We also participate in conferences hosted in Japan by
securities companies and hold individual meetings. For
individual investors, we have started holding company
information sessions to promote an understanding of ourbusiness and management policies.
Toyota Industries also provides a variety of information,
including ﬁnancial information as well as an overview of ourbusiness and various initiatives, via the company Website.
We use RSS feeds (in Japanese) to promptly provide thelatest information.
n Major IR Activities
For institutional investors and securities analysts in Japan

General Shareholders’ Meeting
We hold our annual general shareholders’ meeting early to
avoid the date on which many companies hold theirrespective shareholders’ meetings so that moreshareholders can attend. We are laying the groundwork forfurther facilitating the exercise of voting rights of ourshareholders by allowing them to exercise such rights via
the Internet and by joining the electronic voting platform for
institutional investors.
We held our 136th General Shareholders’ Meeting on
June 13, 2014, in which 348 shareholders participated. To
foster a better understanding of our business activities, we
invited our shareholders for a lift truck plant tour following
the general shareholders’ meeting.
■ Number of Participants(Persons)

132nd

133rd

134th

135th

136th

Shareholders’ meeting

299

320

363

396

348

Plant tour

90

112

132

185

144

Investor Relations Activities
For institutional investors and securities analysts, ourmanagement conducts brieﬁng sessions to explain ourquarterly ﬁnancial results, including business performance,
progress achieved at each business division and future
initiatives. In addition to accepting individual interviews andmaking visits to institutional investors, we host plant tours(vehicle assembly, car air-conditioning compressors, etc.) to
explain our approach to manufacturing and on-site initiatives
and facilitate a deeper understanding of Toyota Industries.
To respond to the growing number of institutional investors•Quarterly financial results briefings •Individual interviews/visits•Small meetings •Teleconferencing •Company-hosted plant tours•Issuing/delivering Toyota Industries Reports
For institutional investors from outside Japan•Individual interviews/visits •Teleconferencing•Participation in conferences hosted by securities companies•Issuing/delivering Toyota Industries Reports
For individual shareholders and investors•Company information sessions •Company-hosted plant tours•Issuing/delivering notice of general shareholders’ meeting•Issuing/delivering business reports

Returning Profits to Shareholders
Toyota Industries regards ensuring shareholder benefits as
one of the most important management policies.
Accordingly, we strive to continue paying dividends andmeet the expectations of shareholders upon taking into
consideration such factors as business results, demand forfunds and the consolidated payout ratio. For fiscal 2015,
Toyota Industries paid annual cash dividends per share of¥110.0 (interim cash dividend per share of ¥50.0 and yearend cash dividend per share of ¥60.0).

Relationship with Our Business Partners / Relationship with Our Shareholders and Investors

Fair Business Transactions Based on an Open
Door Policy

Relationship with
Stakeholders

Toyota Industries encourages open procurement and seeks co-existence and co-prosperity
with our business partners (suppliers) based on mutual trust. We also facilitate environmentally
preferable purchasing, CSR-oriented procurement practices and disaster prevention activities
for a possible major earthquake.

Relationship with Our Shareholders and Investorsn Cash Dividends per Share (Annual) and Consolidated Payout Ratio
(¥)
120

(%)
30

100
80

20

60
10

40
20
0

(FY)

11

12

13

14

15

0

55

Relationship with Our Associates
Initiatives for Health Management andImprovement

Our ultimate goal is to create safe and secure workplaces for everyone, where each and every associate
can exercise their diverse potentials and play active roles.

Workshop for managers and supervisors

Safety Vision
Each and every associate in the Toyota Industries Group,
guided by the spirit of our corporate creed,aims to create a corporate culturethat places a top priority on maintaining safety in all areas
and focuses on mutual courtesy and safety
as well as realizing workplaces
where associates work each daywith a sense of happiness and pride.
July 1, 2013

Our efforts to foster a safety-oriented culture involve
such basic practices as pointing and calling on passages
within plant sites and prompting activities to each other formutual enlightenment. We believe that such simple yet
repetitive practices will form the foundation for preventing
industrial accidents.
In fiscal 2015, we developed e-learning materials forsafety education and worked to raise our safety and healthlevels by using them in workplace meetings.
Steady implementation of these various initiatives
resulted in a certain year-on-year improvement in thefrequency rate of lost workday injuries in fiscal 2015. We willcontinue these initiatives to further instill a safety culture
among associates.

Physical ﬁtness measurement conductedduring age-based health educationn Frequency Rate of Lost Workday Injuries(%)
1.2

Manufacturing industryn Major Health Promotion Activities in Fiscal 2015

1.0
0.8

Good
Manufacturers of transportation
machinery and equipment

0.6

Safety workshop for staff of our bases in China

Instilling and further augmenting a safety culture requireleadership and strong awareness among managers andsupervisors. In fiscal 2015, we started providing education
to all managers and supervisors to enhance their56

Toyota Industries Report 2015

0.4
0.2
0

Toyota Industries
(FY)

11

12

13

14

15

(Source: Survey on Industrial Accidents, Japan’s Ministry of Health, Labour and Welfare)Participants of age-based health education(1,654 persons)

Persons having completed guidance programon prevention of lifestyle diseases(507 persons)

Stop smoking enlightenment events• World No Tobacco Day: One-day no smoking (May 31)• No Smoking Days: Half-day no smoking (for three days)
Participants of stop smoking campaigns(held jointly with health insurance association)(46 persons)Participants of walking events(held jointly with health insurance association)(1,619 persons)Technical Skills

Management Skills

Expertise/skills/know-how

TPS, QC, SQC, etc.
Ability to identify and resolve issues
Ability to merge multiple levels of skill

Team Strength

LeadershipTo pursue improvements
thoroughly and continuously

Spirit of Harmony

Relationship with Our Associates

In accordance with our fundamental policy of “creating
people capable of autonomously maintaining occupationalsafety and health,” Toyota Industries strives to prevent
industrial accidents and occupational disorders as well as
realize better work environments.
Based on the idea of building “a homelike atmosphere atwork that is warm and friendly” as stated in the Toyoda
Precepts, we clarified “the true meaning of safety” and “theform of safety we seek” and formulated the Safety Vision in
fiscal 2014. With the aim of fostering a safety-oriented
culture, we have promoted activities to instill the vision
throughout the Toyota Industries Group. In September 2014,
we held a safety workshop for top management and safety
and health officers of our bases in China, thereby
completing dissemination of the vision to Group companies
throughout the world.

understanding of the Safety Vision and help them recognize
the true meaning of “zero industrial accidents,” issues toovercome and the required mindset. During fiscal 2016,
education to all eligible persons will be completed and asystem set up to educate newly appointed managers andsupervisors for raising safety awareness on an ongoingbasis.

Toyota Industries believes that it is essential to enhanceteam strength so that each associate can work with vitality
and the Company can achieve sustainable growth.
We believe that team strength is made up of “technicalskills” that form the basis of manufacturing operations,“management skills” to make maximum use of technicalskills and “spirit of harmony” that supports both. Whilefurther enhancing our team strength, we are striving toextend and hand it down beyond all business domains,
generations and geographic regions.

Relationship with
Stakeholders

Building a Safety-Oriented Culture That Aims
for Zero Industrial Accidents

As a task for the medium term, we are promoting associate
health improvement programs to counter risks associatedwith aging and greater stress.
Speciﬁcally, we proactively provide health guidance toprevent lifestyle diseases from developing into metabolic
syndrome and actively encourage follow-up after annual
health checkups. We also conduct periodic age-based
health education for all associates to maintain and promote
their health and wellness.
In fiscal 2015, the scope of our age-based healtheducation was extended to include trial programs focusedon prevention of lifestyle diseases. Moreover, along withspecific health guidance required by the Japanese
government, we began to provide health promotion
guidance to associates below the age of 40 to help them
improve lifestyle habits early on.
As part of mental health care activities, we have in placea system to offer early consultation through a health-related
hotline. Other activities include upgrading our preventive
self-care/line-care education and operation of a return-towork support program for persons on long-term leave forprevention of relapses. We have successfully achieved somepositive results through these activities.

Enhancing Team Strength

Teamwork
Well-roundedhumanity

Technical Skills
To develop skills to
support manufacturing,
the Technical Learning
Center, one of ourtraining facilities, plays
the central role inassociate education,offering basic skills
training at the TechnicalTraining School and52nd National Skills Competition(electrical welding category)facilitating efforts toenhance the skills of young technical staff through in-houseskills contests. We also work to cultivate highly skilled
specialists through participation in the national andinternational skills competitions.
At the 52nd National Skills Competition held in 2014, theToyota Industries team won one gold medal in the “electricalwelding” category and received prizes in various othercategories, thereby attaining medals for the 14th
consecutive competition.
n Number of Medals Won at the National Skills Competition
FY2013

FY2014FY2015Gold medal

—

1

1

Silver medal

1

2

3

Bronze medal

4

3

1

Total

5

6

5

Management Skills
We conduct TICO Business Practices (TIBP) training
targeting associates in administrative and engineering fields,with the aim of mutually sharing the thinking and values that57

Relationship with Our Local Communities
2014. The foundation aims to foster more active
participation of female workers in the entire manufacturingindustry, including the auto industry. Specifically, it seeks toincrease the number of female students majoring in scienceand engineering by appealing the attractiveness ofengineering work and provides career development support
to female students in the science track.
Looking ahead, we will promote systematic recruitment
and development of female associates while working toward
the goal of tripling the number of female associates inmanagerial positions to 75 by 2020 versus the 2014 level.

n Ratio of Associates with Disabilities (Non-Consolidated)
(%)
2.3
2.2
2.1

Establishing Work Environments Where
Diverse Human Resources Can Play Active
Roles

2.0
0

(FY)

13

14

15

Ofﬁce takes the initiative in carrying out activities.

Activities as a Good Corporate Citizen
Based on “Respect for Others” as described in our Basic
Philosophy, we strive to fulﬁll our role as a good corporate
citizen in every region where we do business and actively
engage in social contribution activities to realize an enriched
and healthy society. In our activities that emphasize social
welfare, youth development, environmental protection andcommunity contribution, we not only provide cooperationand support through personnel, facilities, funds and knowhow but also strive to closely connect with participants. To
foster employees’ awareness of their ties to society andraise their interest in contributing to society, we makeenlightenment efforts such as sharing information on
volunteer activities and providing a venue for volunteer
activities that encourage the participation of all employees.
Employee associations* are actively undertaking various
activities to contribute to local communities, mainly in theareas of supporting welfare facilities and protecting thenatural environment.
* Voluntary organizations formed by employees at each job level

We are implementing a variety of measures to create work
environments where a diverse range of human resources
can fully exercise their capabilities. These include promoting
active roles of female associates, supporting the employmentof persons with disabilities and creating an environment inwhich older associates can work more actively.

Creating a Work Environment for Older Associates
We focus on creating a better work environment for older
associates by adjusting the height of jigs in production lines
and modifying processes to compensate for deterioration ofvision so that they can work with less stress.
Moreover, since the introduction of a re-employment
system for associates who reach the mandatory retirement
age of 60, the number of associates who choose tocontinue working has been increasing. In response, we hold
“55 Career Training” for associates reaching the age of 55 togive them an opportunity to envision life and work after theage of 60 and think about how they should work during theremaining pre-retirement period.

Promoting Active Roles of Female Associates
We promote active roles of female associates with a focus
on “supporting balancing work and family,” “supporting theircareer development” and “reforming our corporate culture
and awareness.”
We also support and participate in the Toyota Female
Engineer Development Foundation established in December
n Initiatives for Promoting Active Roles of Female Associates~ FY2008

FY2009FY2010FY2011

Enhancing support systems for balancing work and family•Extending the period of childcare leave•Introducing a leave system to allow
parental care of children with illnesses•Establishing on-site day care
•Introducing a “welcome-back”
system*

FY2012FY2013

FY2014•Introducing a shorter work-hour system for child care

FY2015•Introducing a telecommuting system(from Apr. 2014)

Cultivating corporate culture•Opening a Diversity Navi page on the intranet •Holding exchange meetings and lectures to share experiencesof female associates in balancing work and family

Increasing the ratio of female associates•Starting to recruit main career track female associates(for engineering positions in 1986 and administrative positions in 1996)•Seminars for female students in science track•Increasing recruitment of female associatesfrom non-engineering university departments
Cultivating career consciousness•Individual interviews with female•Sending trainees overseas
assistant managers and their superiors•Formulating individual development plans* A system to enable reinstatement under certain preconditions

58

Toyota Industries Report 2015

Structure for Promoting Social Contribution
Activities
The CSR Committee deliberates on policies of our social
contribution activities while the Social Contribution Group
within the General Administration Department at the Headn Major Social Contribution Activities of Toyota Industries andGroup Companies
Theme

Activities

Events to interact with persons with disabilities (e.g., clam digging excursions
and harvest festival)
Support for welfare facilities (e.g., charity bazaars, facility cleanup/repair/weeding)SocialCollaborative Group-wide fundraising drives
welfareDonation of wheel chairs (China) (P.60)
Support for the disadvantaged via participation in charity event (U.K.) (P.60)
Food donation to a food bank through Christmas charity activities (U.S.A.)
Housing construction/repair to assist international support organization (U.S.A.)
Support for Youth Invention Clubs (e.g., monozukuri workshops during summer
vacations and handmade kite-flying competitions)
Youth
Providing plant-hosted environmental education to elementary school children
development Holding mini concerts at elementary schools (P.59)
Accepting junior high school students for work experience programs
Educational support to a tribal society via support organization (India)
Tree thinning activities for conservation of prefecture-owned forests andproducing and donating benches made of thinned wood
Tree-planting activities for reforestation
Environmental Support for environmental festival through participation and financial
protection assistance (Sweden)
Tree-planting activities on Mt. Papandayan (Indonesia) (P.60)
Raising awareness for environmental protection and promotion activities forWorld Environment Day (China)
Participation in local traditional events
Road cleanup activities in areas around plants
Activities to raise awareness for traffic safety
Community Crime prevention patrols
contribution Highway cleanup activities (U.S.A.) (P.60)
Holding technical seminar for air conditioner maintenance (Indonesia)
Collecting and selling PET bottle caps and donating proceeds to local hospital(Spain)Donating prizes to local sports event as a sponsor (India)
Holding charity concert as a sponsor
Other
Support as volunteers for international NGO in collecting spoiled postcards
Periodic blood donation drives at each plant

Relationship with Our Associates / Relationship with Our Local Communities

Employment of Persons with Disabilities
We respect the idea of people with and without disabilities
working together and sharing life and work values. Under
this basic policy, we continue to employ persons withdisabilities every year. They are assigned to a variety ofsections and work with other members to perform theirdesignated tasks. In ﬁscal 2015, the ratio of associates withdisabilities on a non-consolidated basis was 2.21%.

Spirit of Harmony
Toyota Industries is creating a bright, energetic and caring
work environment that fosters a dynamic workforce andallows every member to demonstrate his or her capabilities
both as an individual and as a team. We are proactively
encouraging communication not only during work hours but
also through social gatherings, sports days, summer
festivals, Group-wide ekiden long-distance relay races andcheer squads for various sports events.

With a view toward creating an enriched and healthy society and ensuring its sustainable growth, we fulfill
our role as a good corporate citizen and actively undertake social contribution activities in every region
where we do business.

Relationship with
Stakeholders

the Company gives importance to, as well as to improve ourassociates’ problem-solving capabilities. To share thethinking and values all across the Toyota Industries Group,
we conduct TIBP training atour bases outside Japan, inparallel with the same training
we conduct in Japan. In asimilar aim, we hold a global
human resources conferenceof human resources
administrators from ourbases outside Japan.
Global human resources conference(Activities without country designation were conducted in Japan.)

Activity Example of Toyota Industries (Japan)
Mini Concerts at Elementary Schools
Since fiscal 2011, we have been inviting globally active
musicians and holding mini concerts at elementary schools
located near our plants. In fiscal 2013, we also started
organizing such concerts in areas affected by the Great East
Japan Earthquake.
These concerts, being held in school gyms andclassrooms as part of music class, allow children to listen to
and closely see the live performance of first-rate musicians.
We plan these concerts with the hope to foster a richhumanity, letting children feel the sounds and resonance ofmusical instruments,
Mini concert at elementary school
performers’ intake of breathand emotions.
To date, we have held mini concerts at a total of 50
schools for more than 8,000 elementary school children.
Voices of Children• I’ve only heard the violin on CDs and felt happy to see and listen
to the sound of an actual violin.
• Each piece made me feel warm inside.
• I was touched by the music. I want to work hard and make mydreams come true, etc.

n Number of Participants of Elementary School Mini Concerts
FY

LocationObu and Takahama cities, Aichi Pref.

Rikuzentakata and Ofunato cities, Iwate Pref.
Total

Total
(No. of Elementary
Schools)

2011

2012

2013

2014

2015

Total
(Persons)

1,170

1,846

1,195

1,865

1,173

7,249

34

—

—

243

524

720

1,487

16

1,170

1,846

1,438

2,389

1,893

8,736

50

59

Activity Examples of Consolidated Subsidiaries (outside Japan)
China

Donation of Wheelchairs for Persons with
Disabilities

Yantai Shougang TD Automotive Compressor Co., Ltd.
(YST)
Subsidiary producing car air-conditioning compressors
In observance of International Day of Persons with
Disabilities, YST donated wheelchairs to a local welfare
center in December 2014. These wheelchairs werepurchased with contributions collected from employees.
This was the third time since the company’s establishment
in 2012 to undertake this activity, which is highly regarded
locally and was reported on TV and in the newspaper.

Indonesia

P.T. TD Automotive Compressor Indonesia (TACI)
Subsidiary producing car air-conditioning compressors
TACI plants trees to improve the environment every year.
On August 17, 2014, which is Indonesia’s Independence
Day, 50 employees took part in planting trees on the2,665-meter Mount Papandayan. In addition, TACI donatedtrees to a junior high and elementary schools in the Bekasi
Area where TACI is located.

Donating wheelchairs to a local welfare center

U.K.

Support for the Disadvantaged

Toyota Material Handling UK Limited (TMHUK)Sales subsidiary for materials handling equipment
In March 2015, together with the entire U.K. Toyota Group
companies TMHUK took part in Red Nose Day* hosted by
Comic Relief, a U.K.-based major charity organization, toraise money. Its flagship campaign is to wear a red noseand the fun-filled fundraising activity was featured ona special TV program.

Planting Trees for Environmental
Protection

Environmental Initiatives

Employees who took part in tree planting

U.S.A.

Highway Cleanup Activities

Michigan Automotive Compressor, Inc. (MACI)
Subsidiary producing car air-conditioning compressors
As part of joint cleanup activities between local citizens andthe government, in April and September 2014 MACI
participated in picking up trash along the highway running
through Jackson County. Approximately 20 participants
wore government-issued, bright-colored vests for safety
and picked up trash for two hours.

* Participants purchase a red nose for £1 to take part in the fundraising event. Proceeds
are used for support projects for the disadvantaged in the U.K. and Africa.

Vision for Environmental Activities

P

62

Structure to Implement Environmental Management

P

63

Fifth Environmental Action PlanP

64− 65

Establishing a Low-Carbon Emission SocietyP

66− 67

Establishing a Recycling-Based SocietyP

68− 69Reducing Environmental Risk andEstablishing a Society in Harmony with NatureP70− 71

Environmental Management

P72− 73

Environmental Impact Flow and Environmental Accounting

Employees who took part in fundraising

60

Toyota Industries Report 2015

P

74

MACI employees engaging in cleanup activity

61

Structure to Implement Environmental
Management

Vision for Environmental Activities

Global Environmental Commitment

Aiming at realizing a prosperous life in harmony
with the natural environment• Change to more environmentally friendly chemicals• Minimize environmental risks• Effective use of resources at thedeveloping stage of products• Improvement of productivity interms of resources usage

Environmental risk
reduction
Society in harmony
with nature• Development of products andtechnologies in pursuit of superiorenergy efficiency• Achievement of minimum energy
consumption through the innovationsin production engineering

Establish parameters to calculate CO2 reduction
1
volume for each productEnvironmental
Managementn Environmental Management Structure
Environmental Committee

Internal audit
Responsible internal auditor

Specialized committees•Team leader•Supervising auditors•Auditors

Product Environment Subcommittee

2 Simulate a timeline to accomplish “CO2 Cancel”
3

Specify targets (including when to accomplish“CO2 Cancel”)

4 Promote activities to achieve these targets
5 Accomplish “CO2 Cancel”
6 Define higher targets

Chief environmental administrator

Head Office
Corporate Planning
R&D
Purchasing
Quality Assurance
Human Resources
General Administration

Production Environment Subcommittee

Admin office

Company-Wide CO2Emission Reduction Conference

Divisions
Materials Handling Equipment
VehicleEngineCompressor
Electronics
Textile Machinery

Division-Based
Promotion Committees

Environmental Audits
Toyota Industries implements annual internal environmental
audits as well as external audits carried out by anindependent third-party institute.
The external audit conducted in ﬁscal 2015 revealed one
non-conformance. We have already completed measures tocorrect it and passed on the relevant information to otherplants to prevent recurrence.
We continued to conduct internal audits under themutual, interdivisional audit system introduced in fiscal 2013.
In fiscal 2015, we strived to upgrade our auditing capabilities
by organizing audit teams with the dual goals of fostering
the development of auditors and increasing audit
efficiencies. In the area of audits, our focus was placed on
reducing environmental risks and improving environmental
performance, and we successfully clarified the degree ofcontribution by each business division’s efforts to overall
environmental management.

Environmental Conservation Organization by
manufacturing plants (environmental risk
management overseen by plant managers)

Recycling-basedsocietyLow-carbon
emission society

Toyota Industries has positioned environmental response as
one of its most crucial management issues. To quickly
reﬂect top management’s decisions on business operations,Toyota Industries has established and been operating a
Company-wide integrated environmental management
system (EMS), with the president at the top.

President

Steps to Accomplishing “CO2 Cancel”

understanding of environmental management and developinternal auditors.

Promotion of Environmental Management
System• Approach towards biodiversity• Human resources,
environmental awareness• Cooperation with global
society and local communities

Notional Diagram of Global Environmental Commitment

CO2 Cancel

In fiscal 2015, we provided education to employees toraise the level of our environmental management. These
included introductory courses for environmental
management and environmental audits, in which the former
is for cultivating required knowledge and the latter for
gaining knowledge and techniques of internal audits.
Proactive participation by department heads and others inmanagerial positions has enabled us to increase

Vision for Environmental Activities / Structure to Implement Environmental Management

As one tenet under our Basic Philosophy, Toyota Industries
works to contribute to regional living conditions and social
prosperity and also strives to offer products and services
that are clean, safe and of high quality. Accordingly, inFebruary 2011, we established the Global Environmental
Commitment, a speciﬁc environmental action guideline, tobe shared and implemented throughout the Toyota
Industries Group.
The entire Toyota Industries Group comprising 168
companies in and outside Japan will dedicate concerted
efforts to realizing a prosperous life in harmony with thenatural environment by carrying out activities aimed at“establishing a low-carbon emission society,” “establishing a
recycling-based society” and “reducing environmental risk
and establishing a society in harmony with nature” as ourway of “promoting environmental management.”

Our efforts included the successful development andrelease of such new products as internal-combustion lift
trucks with lower fuel consumption and an air compressor
for fuel cell vehicles, which offers lower energy consumption.
As a result of concerted and proactive efforts to reduce CO2
emissions from production activities, we made further
progress toward the goal of attaining “CO2 Cancel” in ﬁscal
2016.
To achieve the goal, we will continue to promote our
CO2 reduction activities both in terms of productdevelopment and production activities.

Positioning environmental response as one of its most crucial management issues, Toyota Industries isenhancing its environmentally oriented corporate management on a global basis through the promotion of
consolidated environmental management.

Environmental Initiatives

Toyota Industries works with consolidated subsidiaries in and outside Japan to promote environmental activities
on a global scale. With regard to our “CO2 Cancel” initiative, we aim to accomplish its targets in ﬁscal 2016.

Conducting an introductory course for environmental audits

CO2 emissions fromproduction activitiesn Scope of Group-Wide Environmental Management (As of March 31, 2015)

Working toward “CO2 Cancel”
n What Is “CO2 Cancel”?
We have been promoting initiatives under our original
concept called “CO2 Cancel.” This refers to our aim to offset
CO2 emissions from production activities by reducing CO2
emissions via improved product efﬁciency and other means.
We have positioned this approach as a new environmental
target under the Fifth Environmental Action Plan and havebeen yielding steady, positive results.
n Activities for Accomplishing “CO2 Cancel”
Aiming to accomplish “CO2 Cancel” in ﬁscal 2016, we havebeen undertaking activities accordingly.

62

Toyota Industries Report 2015

Reduction of CO2 emissions via improved
product efficiency

EuropeJapan

n Production companies: 6

n Non-consolidated: 10 plants
n Production companies: 12

BT Products AB (Sweden)
Toyota Industrial Equipment, S.A. (France)
CESAB Carrelli Elevatori S.p.A. (Italy)
L.T.E. Lift Truck Equipment S.p.A. (Italy)
TD Deutsche Klimakompressor GmbH (Germany)
Uster Technologies AG (Switzerland)

Notional Diagram of “CO2 Cancel”

CO2 emissions from production activities= Total CO2 emissions from Toyota Industries’ plants
Reduction of CO2 emissions via improved product efficiency= Total reduction in CO2 emissions attained by major products
which are manufactured at Toyota Industries’ plants

Asian Production companies: 6
Toyota Industrial Equipment Vietnam Co., Ltd. (Vietnam)
Kirloskar Toyota Textile Machinery Pvt. Ltd. (India)
P.T. TD Automotive Compressor Indonesia (Indonesia)
Toyota Industry (Kunshan) Co., Ltd. (China)
TD Automotive Compressor Kunshan Co., Ltd. (China)
Yantai Shougang TD Automotive Compressor Co., Ltd. (China)

Aichi Corporation (Saitama)
Nishina Industrial Co., Ltd. (Nagano)
HANDA Casting Company (Aichi)
Unica Co., Ltd. (Aichi)
Tokaiseiki Co., Ltd. (Shizuoka)
Altex Co., Ltd. (Shizuoka)
IZUMI MACHINE MFG. CO., LTD. (Aichi)
Nagao Kogyo Co., Ltd. (Aichi)
Miduho Industry Co., Ltd. (Aichi)
Iwama Loom Works, Ltd. (Aichi)
Tokyu Co., Ltd. (Aichi)
Hara Corporation (Gifu)

Non-production companies
Japan: 23
Outside Japan: 110

North American Production companies: 9
Cascade Corporation (U.S.A.)
Indiana Hydraulic Equipment, Corp. (U.S.A.)
North Vernon Industry Corp. (U.S.A.)
Raymond-Muscatine Inc. (U.S.A.)The Raymond Corporation (U.S.A.)
Toyota Industrial Equipment Mfg., Inc. (U.S.A.)
Michigan Automotive Compressor, Inc. (U.S.A.)TD Automotive Compressor Georgia, LLC (U.S.A.)
Toyota Industries Compressor Parts America, Co. (U.S.A.)

Latin American Production company: 1
Toyota Material Handling Mercosur Indústria e Comércio deEquipamentos Ltda (Brazil)

63

Fifth Environmental Action Plann Production Related
Fifth Environmental Action Plan Targets
Segments

ﬁscal 2016, promoting activities according to the plan.
Through activities undertaken during ﬁscal 2015, we
made steady progress toward achieving respective targets
for ﬁscal 2016.

n Product Related† Targets for FY2016 undisclosed due to confidential information

Fifth Environmental Action Plan Targets
Segments

Action Policies

Specific Actions

FY2015 Achievements

Reduce CO2 emissions by 10% from major products to be developed during the period covered by
the Fifth Plan*1

In the Automobile-Related Business, promoteelectrification and develop technologies andproducts that will contribute to reduction of CO2
emissions

Establishing a
Low-Carbon
In the Materials Handling Equipment Business,
Emission Society develop technologies and products that willcontribute to reduction of CO2 emissions

In the Textile Machinery Business, develop
technologies and products that will contribute to
reduction of CO2 emissions

In the R&D field, develop technologies for energy
efficiency

Establishing a
Implement initiatives to promote 3R (reduce,
Recycling-Based reuse and recycle) design for effective resource
utilization
Society

Reducing
Environmental
Risk and
Establishing aSociety inHarmony with
Nature64

Toyota Industries Report 2015

• Improve energy efficiency of car air conditioners• Develop technologies to respond toelectrification of vehicles• Develop technologies to enable weight reduction• Reduce energy loss
• Develop new engines<Automobile-Related Business>• Developed highly efficient electric car
air-conditioning compressor• Improve fuel efficiency of internal-combustion lift
trucks• Reduce energy loss in electric-powered lift
trucks and improve energy efficiency offunctional units<Materials Handling Equipment Business>• Improved energy efficiency of electric lift truck<Textile Machinery Business>• Developed technologies to reduce power
consumption• Reduce energy use through lower air
consumption• Reduce power use through lower load fromwindage loss
• Reduce energy loss
• Develop new technologies that contribute toimproved energy efficiency in automobiles• Reduce use of resources through longer productlife• Reduce use of resources throughstandardization, modularization and reduction of• Developed plastic glazing back window
components• Reduce use of resources through weight andsize reductions• Promote reuse of components and resources

Reduce emissions to improve air quality in urban
areas in all countries and regions• Develop engines that meet future regulations

Manage chemical substances contained in
products• Investigate chemical substances contained in
products and manage switching over of SVHC*2
and other substances of concern to othersubstances• Developed lift truck engines compliant withemissions regulations ahead of schedule• Expanded the scope of substances of concern(investigated substances of concern containedin supplies)

Subject

Promote energy reduction and energy conservation
through innovative production technologies
Reduce greenhouse gas emissions during production
processes through energy JIT*3
Promoting measures to curb global warming

Reduce CO2 emissions through green logistics

Establishing a
Recycling-BasedSociety

Reducing
Environmental Risk
and Establishing aSociety in Harmony
with Nature

Enhance resource productivity• Reduce use of timber-derived packaging materials• Reduce the volume of discarded materials by taking
action at the source, such as improving yields andother measures• Promote internal reuse
Further reduce emissions of substances of concern
Minimize environmental risks• Expand the use of a preliminary review system• Reduce risks related to wastewater• Appropriately manage chemical substances based onsocial conditions• Enhance risk communication with relevantorganizations and local residents

Scope

Control Items Base Year (FY) Achievements

Targets

Total
emissions

2006

-18%

-18%

Eco
efficiency*5

1.29

1.27

2006
1.42

1.47

Total
emissions

1991

-35%

-20%

NonCO2 emissions
consolidated• Energyderived CO2
Global• 5 gases*4• CO2 from
Nonlogistics
consolidated
CO2 from
logistics

Nonconsolidated

Eco efficiency

2007

1.54

1.09

Packagingmaterial
volumeNonEco efficiency
consolidated

2007

3.43

1.09

1.03

1.01

1.03

1.01

24 (g/m2)

24 (g/m2)

Waste
generation
volumeVOC*6emissions

In Japan
Nonconsolidated

Eco efficiency

Nonconsolidated(automobile
body)

Emissionvolume perunit ofproductionn Promoting Environmental Management

2013

—

† Targets for FY2016 undisclosed due to confidential information

Fifth Environmental Action Plan Targets
Action Policies

FY2016 Targets

Fifth Environmental Action Plan

With an eye to realizing a prosperous life in harmony with thenatural environment through the establishment of asustainable society, we have formulated the Fifth
Environmental Action Plan for the period from ﬁscal 2012 to

Action Policies/Specific Actions

Establishing a
Low-Carbon
Emission Society

Progress in the Fifth Environmental Action Plan

FY2015 Achievements

Environmental Initiatives

The results of our activities in fiscal 2015 showed steady progress across the board toward achieving respective
targets for fiscal 2016.

Specific Actions

FY2015 Achievements

Reinforce CO2 reduction activities for “CO2 Cancel”• Further reduce CO2 emitted from production activities inplants• Aim to cancel out CO2 emissions of Toyota Industries byreducing CO2 emissions through improved efficiency innewly developed products• Conducted activities for achievement of “CO2 Cancel”(Target: FY2016)

Augment and promote consolidated environmental
management• Build a global environmental management system andpromote related activities to:1) Comply with environment-related laws and reduce
environmental risks in each country2) Achieve the highest-level environmental performance ineach country• Aim for efficient and systematic corporate management byintegrating and operating environmental management
system and quality/safety management systems• Visualized environmental performance andenvironmental risk reduction measures of consolidated
subsidiaries in and outside Japan

Enhance and promote environmental education andenlightenment activities• Develop environmental specialists to lead internal
environment-related activities• Strengthen internal environment-related activities andbroaden family-friendly initiatives by planning and promoting
enlightenment activities that can be carried out at home

• Conducted environmental awareness survey among
employees, which scored 3.9 out of 5 points

Improve eco-conscious brand image• Reinforce environmental activities according to the contents
and results of Survey of Environmental Oriented
Management Index to pursue higher brand image• Toyota 1KD industrial diesel engine received a Logistics
Environmental Technology Development Award in the
15th Logistics Environmental Awards program

Augment activities related to protection of
biodiversity• Identify the impact of business activities on biodiversity andreinforce initiatives by deﬁning speciﬁc goals• Contribute to biodiversity through conservation of forestsand protection of rare species• Conducted maintenance and management activities at
Biotope of the East of Obu Station, which were jointly
carried out with the local community• Held biotope tour for students

Promote sustainable plant activities• Promote energy reduction and energy conservation throughinnovative production engineering, reduce energy loss andbuild a plant environment in harmony with nature by using
renewable energy and other means• Continually reviewed energy strategy for the medium tolong term*1: Target products Toyota Industries develops and produces. The CO2 reduction volume is calculated based on the method Toyota Industries determined using FY2011 levels as
the baseline.
*2: Substances of Very High Concern*3: Just In Time
*4: Greenhouse gases other than CO2, including methane (CH4), dinitrogen monoxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulfur hexafluoride (SF6)*5: Eco-efficiency = Production efficiency in subject year / Production efficiency in base year
Production efficiency = Production indicator (Net sales or production volume, etc.) / Environmental impact of production activities*6: Volatile Organic Compounds

65

Establishing a Low-Carbon Emission Society

Summary

Saving Energy Used for Air Conditioning by
Introducing Coating Dry-Off Oven Exhaust
Heat Recovery Equipment

CO2 Emissions (Production Activities)
FY2015 Results

18% reduction

FY16 target:

18% reduction(vs FY06 level)(vs FY06 level)

Eco-efﬁciency (global)

1.29

FY16 target:

1.27 (FY06 = 1.00)(FY06 = 1.00)

Under the Fifth Plan, we set out to achieve a target of
reducing total non-consolidated CO2 emissions fromproduction activities by 18% in ﬁscal 2016 comparedwith the ﬁscal 2006 level. In fiscal 2015, we promoted
energy-saving measures when installing new equipment
and carried out joint activities among the
manufacturing, production engineering andenvironment departments to reduce the amount of air
used in production activities.
Our product development activities are based on
the keywords of 3Es (Energy, Environmental protection
and Ecological thinking), and we focus on developing
products that meet the need for increased energy
savings, electriﬁcation and weight reduction. In thisarea, we are currently working toward a target of
attaining a 10% reduction in CO2 emissions fromprimary products by ﬁscal 2016 compared with theﬁscal 2011 level.

In fiscal 2015, as part of its ongoing activities to reduce CO2
emissions, the Takahama Plant, a development andproduction base of materials handling equipment in Aichi
Prefecture, undertook a project to reuse exhaust heat fromthe coating dry-off oven.
Previously, city gas was used to power the productcooling system required in the coating process and for air
conditioning in the plant, while exhaust heat from the dry-offoven was being emitted externally.
The project installed exhaust heat recovery equipment
suitable for the plant and succeeded in efficiently recoveringotherwise wasted exhaust heat and reusing the recovered
energy for the product cooling system and air conditioning.
As a result, annual CO2 emissions of the Takahama Plant
were reduced by about 200 tons. This project won the Most
Outstanding Practice Award in fiscal 2015 under our internalaward program to recognize excellent environmental
improvement activities.
We will continue to undertake improvement activities tofurther reduce CO2 emissions.
n Reusing Exhaust Heat

Energy1.31

Total
emissions
(kt)

800

1.00

1.21

1.00
667

756

1.36

1.23

796

1.29

858

826

1.27

1.2

Good

Heating for people

After improvement

Cooling for people

Product cooling

Dry-off oven

EnergyHeat
energyExhaust heat recovery (200–300ºC)

1.0

Energy600
400

Attained a significant reduction in fuel consumption comparedwith the previous model by installing the Toyota 1KD diesel
engine or Toyota 1FS gasoline engine, both certified asenvironmentally friendly products under our internal certification
system.
† The models fitted with the Toyota 1KD satisfy Japan’s 2014 Non-road
Special Motor Vehicles emission regulation.

GENEO

Internal-combustion lift truck

30%
lower fuel*1

consumption(models fitted with
the Toyota 1KD)

8FD15 – 8FDJ35 (fitted with the Toyota 1ZS)

Attained a significant reduction in fuel consumption comparedwith the previous model by newly installing the Toyota 1ZS diesel
engine certified as an environmentally friendly product under ourinternal certification system.
† The model satisfies Japan’s 2014 Non-road Special Motor Vehicles
emission regulation.

Approx.

25%
lower fuel*1

consumption

JAT810
The JAT810 air-jet loom offers a diverse
range of originally developed features,
including an air-saving system that ensureshigher energy-saving performance.
Attained significant reductions in both airand power consumption compared withthe previous model.

20%
lower air*1

consumption
volumeSummer: 12ºC

1.4
1.25

Approx.

*1: Compared with the previous model. (The percentage of reduction may vary depending on operating conditions.)
Winter: 50ºC

Consolidated subsidiaries outside Japan
Non-consolidated
Consolidated subsidiaries in Japan
Eco-efficiency
Eco-efficiency (non-consolidated)
Eco-efficiency (consolidated)

1.47

Internal-combustion lift truck

8FD35 – 8FD80 (fitted with the Toyota 1KD)
8FG35 – 8FG50 (fitted with the Toyota 1FS)

Approx.

Heat(200–300ºC)

Dry-off ovenn CO2 Emissions (Non-consolidated/Consolidated subsidiaries
in and outside Japan)

1.42

GENEO

EnergyInitiatives for Establishment of a Low-Carbon
Emission Society

1.43

For certified environmentally friendly products, see http://www.toyota-industries.com/csr/environment/product/eco5.html

Air-jet loom

Before improvement

Air conditioning thermal energy source

1.6

Toyota Industries has been proactively promoting development of eco-conscious products. To certify and showcase to
the public products that possess exceptionally high environmental performance and meet internal environmental
standards, we launched the Toyota Industries Environmentally Friendly Product Certiﬁcation System in ﬁscal 2007. With
the addition of two types of lift trucks and one textile machine in fiscal 2015, a total of 18 products have obtained
certification under this system to date.

Establishing a Low-Carbon Emission Society

Total emissions (non-consolidated)

Certiﬁcation of Environmentally Friendly Products

Environmental Initiatives

We position the establishment of a low-carbon emission society as one of our most crucial environmental tasks.
We have been working to reduce CO2 emissions in our global business activities and at the same time
accelerate our efforts to develop more environment-friendly products.

Winter: 50ºC

Summer: 12ºC

Toyota 1KD Industrial Diesel Engine Received Logistics Environmental Technology
Development Award in 15th Logistics Environmental Awards Program
We developed the Toyota 1KD without using a diesel
particulate filter (DPF) and successfully attained both lower
fuel consumption and cleaner emissions by improving thefuel efficiency of the engine itself. This approach was highly
recognized and received the Logistics Environmental
Technology Development Award in the 15th Logistics
Environmental Awards program*2. The Toyota 1KD has
been fitted in our GENEO internal combustion lift trucks.
*2: Award program sponsored by the Japan Federation of Freight Industries to promote
environmental conservation and environmental awareness in the freight industry and recognize organizations/companies and individuals
which/who have contributed to achieving sound industrial growth

Toyota 1KD diesel engine

200
Good

66

0

(FY) 06

Toyota Industries Report 2015

12

13

14

15

16 (Target)

Heating for people

Cooling for people

Product cooling67

Establishing a Recycling-Based Society

Summary
Waste Generation Volume (Production Activities)
FY2015 Results

1.03(FY13 = 1.00)

Eco-efﬁciency (non-consolidated/consolidated subsidiaries in Japan)

1.03

FY16 target:

1.01 (FY13 = 1.00)

FY16 target:

1.01 (FY13 = 1.00)(FY06 = 1.00)

Our eco-efﬁciency targets in the area of waste
generation volume under the Fifth Plan are set at 1.01
both on a non-consolidated basis and for Toyota
Industries and its consolidated subsidiaries in Japan
(ﬁscal 2013 as the base year). To reduce materials
losses, we engage in activities to make effective use ofresources throughout the entire supply chain, extending
the scope of our activities to our business partners.

Compiling and Disseminating Waste Disposal
Know-How within Toyota Industries

The Higashichita Plant, a production base of foundry partsand engines in Aichi Prefecture, has been reusing metal
scrap generated at our other plants as a foundry raw
material. In fiscal 2015, the plant’s efforts were geared to thereuse of copper scrap.
Previously, we purchased and used copper pellets as afoundry raw material. Among metal scrap generated at ourother plants, we verified that the reuse of enameled copper
wire scrap as a foundry raw material was possible.
Discarded wires, however, were not readily reusable
because they were tangled and it was difficult to remove a
required quantity quickly. The issue was resolved byrequesting plants generating the wire scrap to break thetangled bulk into convenient quantities.
This initiative has enabled efficient and internal reuse ofenameled copper wire scrap, which had otherwise beensold to the market as waste. In the future, we will extend ourefforts to other metal resources.

Employees in charge of waste disposal at our plants inJapan share information on case examples that lead toresource recycling and reduction of waste disposal costs,
translating their shared knowledge into Company-wide
improvement activities.
In fiscal 2015, they started compiling their know-how on
waste disposal into a Waste Disposal Handbook and issued
a part of the handbook, the Guide to the Work of Equipment
Disposal. It has been disseminated to relevant departments
and effectively utilized to ensure proper disposal andcompliance with applicable laws and regulations.

n State of Enameled Copper Wire Scrap
Before improvementn Packing Method

Establishing a Recycling-Based Society

Eco-efﬁciency (non-consolidated)

aimed at reducing the plant’s resource consumption, begin
in the product development stage. In fiscal 2015, the plantdevised a better way to pack components being deliveredfrom business partners.
Previously, individual components were delivered frombusiness partners in separate cardboard boxes, which werediscarded after operators took out components for
mounting on a product.
For newly developed products, we collaborated withbusiness partners as early as in the product development
stage and came up with simple packing by eliminating theuse of cardboard boxes and partially reusing packing
materials. The improved method successfully reduced theamount of packing materials discarded as waste.
Moreover, by delivering multiple components as a unit ina roll form, we were able to reduce man-hours required for
packing and transporting on the business partner side andthose for transporting and unpacking at the Anjo Plant.
We will continue to seek reduced use of resources in our
production activities.

Effective In-House Utilization of Metal
Resources

Environmental Initiatives

With a view to establishing a recycling-based society, we have been dedicating considerable efforts to making
effective use of resources throughout our entire supply chain.

Genchi genbutsu (go and see for yourself) confirmation of waste disposall : Component A n : Component B s : Component C

Before improvement

Initiatives for Establishing a Recycling-BasedSociety

3 types, each in a sheet form

T OPIC

Packed in cardboard boxes(discarded after unpacking)Promoting “Kaizen by Karakuri” Initiatives
to Business Partners

n Waste Generation Volume (Non-consolidated/Consolidated
subsidiaries in Japan)
Non-consolidated

Consolidated subsidiaries in Japan

Eco-efficiency (non-consolidated)
Waste
generation
volume (kt)Tangled and difficult to remove a required quantity
quickly (hard to measure)

Eco-efficiency

Eco-efficiency (Japan consolidated)

1.2 Good
1.00

1.02

1.03

1.00

1.02

1.03

131

125

1.01
1.01

After improvement

1.0

After improvement200

1/10th the time and work required forremoving components

119

100

1 type in a roll form
Good

0
(FY)

13

14

15

Stopped using cardboard
boxes and use holders(reused)16 (Target)

We have been promoting initiatives to attain kaizen(improvement) by utilizing Japan’s traditional, simple
mechanical systems called karakuri, which do not
require power generated by motors or other devices.
In fiscal 2015, we held a briefing session to explain
our “kaizen by karakuri” initiatives, in which 45
representatives from business partners and otherparties participated. Our presentation on a karakuri
pump, its structure and usage prompted lively
questions and answers. Participants took back caseexamples to achieve further kaizen in their respective
companies.

Easy to remove a required quantity quickly and use
as foundry raw material

Collaborating with Business Partners to
Reduce Use of Resources
The Anjo Plant, a development and production base ofelectronic devices in Aichi Prefecture, has been undertaking
improvement activities jointly with business partners as wellas internal departments responsible for development,
production engineering and manufacturing. These activities,
Joint review session with business partners

68

Toyota Industries Report 2015

“Kaizen by karakuri” briefing session

69

Reducing Environmental Risk and Establishinga Society in Harmony with Nature

Summary
VOC Emissions (Production Activities)
FY2015 Results

24 g/m2

FY16 target:
24 g/m2

Under the Fifth Plan, we set a ﬁscal 2016 target of
attaining emission volume per unit of production below
24 g/m2 for volatile organic compounds (VOCs) fromthe automobile body painting process and undertook
activities accordingly. In fiscal 2015, we continued ourefforts to increase the recovery rate and enhancemaintenance and management of thinner, a solvent
used for cleaning. Consequently, emission volume perunit of production in fiscal 2015 was 24 g/m2.

Many of the chemical substances needed for our production
activities may cause adverse effects on the environment.
Thus, appropriate management of chemical substances
based on the safety data sheet (SDS) and other available
information is crucial in ensuring safe handling andminimizing potential harmful effects.
Before starting to use a chemical substance, we check
our internal system to confirm any applicable laws andregulations and usage conditions, and make sure todisseminate safety, health and environmental precautions tooperators. This allows operators to understand safe andappropriate usage, effectively preventing industrial
accidents, occupational diseases and environmental
abnormalities.
Receiving accurate information from business partners
also forms an essential part of our chemical substancesmanagement. In fiscal 2015, we concentrated our efforts on
renewing awareness among business partners for the
Briefing session for business partners

Rainwater constant monitoring systemn Toyota Industries’ Chemical Substances Pre-Evaluation System

Soil and Groundwater Pollution
Countermeasures
Toyota Industries carries out surveys and puriﬁcation of soil
and groundwater contaminated from the past use oftrichloroethylene. We regularly report the survey results tolocal government authorities and provide information at local
community meetings. As measures to prevent pollution fromsubstances covered by the Soil Contamination
Countermeasures Law as well as from grease and oils, wehave drilled observation wells at all plants to conduct regularchecks.
Trichloroethylene readings are available at:
http://www.toyota-industries.com/csr/environment/

Visualizing Risk through Piping Inspections
We have been promoting visualization of risks caused by the
aging of piping to respond to the revision to Japan’s Water
Pollution Control Act in April 2011 and to prevent
groundwater and soil pollution due to defects in drainage
systems.
During fiscal 2015, our four production bases in Aichi
Prefecture conducted an inspection of buried piping by
getting inside the pipes and performing a visual check or, if
pipes were inaccessible, by using self-propelled pipe
inspection cameras. The state of deterioration revealed in
the inspection was marked on the drain system blueprint ofeach plant. Based on a risk map created from these
blueprints, we will implement required measures dependingon the degree of urgency.

Installation of a System to Constantly Monitor
Rainwater
In our plant sites, rainwater is routed through a pipe, which
is separate from the drainage system of wastewater
generated in production processes, and released into asewage system.
In order to enforce strict management of both rainwater
and wastewater from production processes, we haveinstalled an oil separation tank and a system to constantly
monitor water quality.
If the system detects an indication of deteriorating water Data registration

External system

Business partner

 Request for data registration

Inside Toyota
Industries

Synchronization(such as SDS) Application

Requesting department(production engineering
dept., facilities
maintenance dept., etc.)

 ApprovalInternal system Delivery

ion

isit



u
Acq

DS

of S

th
do

Approving department(safety and health dept.
or environment dept.)

n

atio

m
for

n

er i

 Contact

Photo of the inside of a pipetaken during a piping inspection

Outside Toyota
Industries

Reducing Environmental Risk and Establishing a Society in Harmony with Nature

Emissions per unit of production(non-consolidated/automobile body)quality, it sends alerts to responsible departments andreroutes the rainwater into an emergency tank. Then,
depending on the degree of quality deterioration, we either
carry out purification at internal wastewater treatment
facilities or consign disposal to an external company toensure contaminated water is not discharged off thepremises.

importance of providing accurate information as well as on
keeping our pool of information up to date. We will continue
to seek to minimize environmental risk throughout the entire
supply chain.

Thoroughly Enforcing Management ofChemical Substances

Environmental Initiatives

We work to ensure the prevention of environmental incidents by fully enforcing the management of chemical
substances in product development and production activities and systematically monitoring drainage systems.

anEvaluation by specialized departments● Safety and health dept.: Verification of hazard and toxicity
Verification of environmental impact● Environment dept.:

User workplace

Self-propelled pipe inspection camera

70

Toyota Industries Report 201571

Environmental Management
Activity Examples of Consolidated Subsidiaries (Outside Japan)n Scope 3 Emissions by Category (FY2015)

Calculating Greenhouse Gas (GHG) Emissions
in the Supply Chainn GHG Emissions in Supply Chain (FY2015)
Scope 1
(0.4%)

Scope 3 / Other(5.2%)

Scope 2
(1.4%)U.S.A.
Introduction of Potentiometers on Electric
Induction Furnaces

TD Deutsche Klimakompressor GmbH (TDDK)North Vernon Industry Corp. (NVIC)

Fuel- and energy-related activities
not included in Scope 1 or 2
Upstream transportationand distribution

Subsidiary producing car air-conditioning
compressors

Subsidiary producing materials handling equipment
parts

Waste generated in operations

In fiscal 2015, TDDK installed a new system that allows theautomatic collection of energy consumption data of all
production lines. With the new software, TDDK is able toraise the reliability of data and reduce man-hours forcollecting data. In addition, automatic visualization of data tounderstand the trends in energy consumption make itpossible to further improve the level of consolidated
management.

NVIC has been using an electric induction furnace to melt
scrap iron, which drives up monthly electricity consumption.
To address this issue, NVIC introduced potentiometers on
the electric induction furnaces to limit the application of
power to 75% of the maximum amount. At this rate, ironcan still be melted in time to meet production schedules, but
CO2 emissions can be reduced while also decreasing
electricity consumption.
As a result, NVIC has achieved a 5.1% reduction inelectricity used per ton of iron melted in fiscal 2015
compared with fiscal 2014, reducing CO2 emissions by
3,650 tons.
NVIC is examining adding another furnace to Plant 2,
which will require modification of the power controls.

Capital goods

Business travel

1

Employee commuting
Upstream leased assets

Included in Scopes 1 and 2

Downstream transportationand distribution

Included in “Upstream transportation and distribution”

Processing of sold products

Not applicable

Website display

Use of sold products
End-of-life treatmentof sold products

Production plan

Downstream leased assets

Not applicableFranchises

Not applicable

Investments

Not applicable
1

10

Facility energy
management
software
100

1,000

10,000100,000

Calculated by using the emissions associated with
employee business travel as the baseline set at 1

Hosting a Biotope Tour for University Students
In April 2014, we conducted a tour for university students
who are members of the Life Relay Project* of our biotope,
which we have developed and completed on Companyowned idle land in Obu City, Aichi Prefecture. During thetour, we explained the concept of our biotope and livingorganisms found there and exchanged opinions on how toturn it into an even better habitat for these living organisms.

Automated

Energy load
management
softwareBy accumulating more data and streamlining
management of energy consumption, TDDK is aiming for
more effective environmental activities.

T OPICTDDK Obtains ISO 50001 Certification in
March 2015*A
 project jointly carried out by Aichi Prefecture, NPOs, companies and students with theaim of forming ecological networks by leveraging corporate green zones of the Chita
Peninsula as well as developing young environmental leaders

Scope 3 / Category 11(93.0%)

Members who made improvements
Emissions from Toyota
Industries’ businessactivities
Emissions other thanfrom Toyota Industries’
business activities

72

Toyota Industries Report 2015

Scope 1

Environmental Management

We recognize that measuring the three scopes defined by
the GHG Protocol and turning the results into specific efforts
to reduce CO2 emissions are important in creating a lowcarbon society. Scopes 1 and 2 are GHG emissions fromour business activities, the former being direct emissions
from our use of fossil fuels and the latter being indirectemissions from the use of purchased energy resulting fromgeneration of electricity by power plants and other facilities.
Scope 3 emissions are indirect emissions associated witheach product from the purchase of raw materials to end use
by customers and disposal.
In fiscal 2015, we joined the Ministry of theEnvironment’s project to support calculation of supply chain
GHG emissions for the establishment of a framework fordisclosure of environmental information. We received
assistance from NTT Data Institute of Management
Consulting, Inc. in calculating our Scope 3 emissions.
In the fiscal 2015 results, combined Scope 1 and 2
emissions accounted for 1.8% of the total emissions, with
Scope 3 emissions reaching 98.2%. The largest source ofemissions, which accounted for 93.0%, was Category 11(Use of sold products) under Scope 3. This was because
the figure included an estimate of future GHG emissions ofour products (lift trucks, vehicles, engines, etc.) throughout
their lifecycle (during use until disposal).
Going forward, we will continue to monitor GHG
emissions within the entire supply chain and accordingly
promote CO2 emissions reduction activities.

Purchased goods and services

Germany
Improving Consolidated Management ofEnergy Consumption

Environmental Initiatives

Toyota Industries engages in a range of new environmental activities, from the conservation of biodiversity tomeasuring Scope 3 emissions.

ISO 50001 is an international standard that establishes
systems and processes for various organizations toimprove energy performance on an ongoing basis andaims at reducing the emissions volume of greenhousegases and lowering energy costs. As a result ofobtaining this certification, TDDK will aim for more
effective environmental activities.

Direct emissions from Toyota Industries through theuse of fossil fuels, etc.

Indirect emissions from the use of purchased energy
Scope 2 resulting from generation of electricity by power
plants, etc.
Emissions associated with purchase of raw materials,
Scope 3 end use of Toyota Industries’ products by customers
and disposal of products

Participants of the biotope tour

73

Environmental Impact Flow and Environmental
Accounting
In this section, we provide an overall picture of environmental impact resulting from our global businessactivities and report the results of environmental accounting (environmental conservation cost, environmental
conservation beneﬁts and economic beneﬁts of environmental conservation initiatives).

Environmental Impact Flow
Environmental
Impact Flow

INPUT
■ Energy [consolidated]
Total consumption..............................
Electricity............................................
City gas ..............................................
LPG....................................................
Petroleum products............................
Coal products.....................................
LNG ...................................................

10,852 TJ*1
1,159,847 MWh
62,108 km3N
4,989 t5,568 kl
6,489 t5,336 tR&D/Design
Procurement
Production*1: Terajoule is a unit used to measure heat. 1 TJ = 1012 joules

Transportation/Sales■ Raw Materials [consolidated]
Raw material consumption .................
700,628 t■ Water [consolidated]
Water consumption ............................
4,087 km3
■ Chemical Substances [Japan consolidated]
PRTR law*2 designated substances....
1,340 tUsage
Recovery/Recycling

OUTPUT

Financial Section /Corporate Information■ Into the Air [consolidated]
CO2 ....................................................
826,437 t-CO2
Greenhouse gases other than CO2 .....
1,936 t-CO2
CO2 from logistics ..............................
35,975 t-CO2
SOx (Sulfur oxides) .............................
413 kgNOx (Nitrogen oxides).........................
134 t
VOC (Volatile organic compounds) .....
1,662 t■ Chemical Substances [Japan consolidated]
Emissions/transfers of PRTR law
463 t
designated substances....................
■ Waste [consolidated]
Waste generation ...............................
90,775 t■ Into Waterways [Japan consolidated]
Water pollutants
28 t
Discharge of treated wastewater ........
2,029 km3

*2: Short for Pollutant Release and Transfer Register, the PRTR law is a scheme whereby businesses measure the release and transfer of PRTR designated pollutants and report theirperformance to the government. The government then compiles this data and releases it to the public.

On-Site Veriﬁcation

Environmental Accounting and On-Site
Veriﬁcation

Every year, Toyota Industries Head Ofﬁce’s Plant Engineering &Environment Department takes the initiative in conducting
on-site veriﬁcation of the accuracy and consistency ofenvironmental data included in the Toyota Industries Report.
The results for ﬁscal 2015 are as follows.

Fiscal 2015 Environmental Accounting*3
Scope of data collection: Toyota Industries Corporation
Period of data collection: April 1, 2014 – March 31, 2015
*3: E
 nvironmental accounting data is collected in compliance with the Ministry of theEnvironment’s Environmental Accounting Guidelines 2005 Edition.

n Environmental Conservation Cost

On-Site Veriﬁcation Sites(Millions of yen)

FY2015FY2014
Category
Investment Expenses Investment Expenses
Pollution prevention costs
944
189
585
427
Business Global environmental
528
4,301
325
3,192
area costs conservation costs
Resource recycling costs
132
160
144
639
Upstream/downstream costs

0

142

0

343

Management costs

3

221

5

1,219

Research and development costs

28

1,437

28

1,943

Social contribution activity costs

2

628

0

456

Environmental remediation costs
Total

24
6
1,661
7,084
8,745

0
43
1,087
8,262
9,349

n Environmental Conservation Beneﬁts
Environmental Impact
CO2
Generation of waste products
Water

Comparison with Previous Fiscal Year
15,105 t decrease
4,930 t decrease
141,841 m3 decreasen Economic Beneﬁts of Environmental Conservation Initiatives(Millions of yen)

Item
Revenue

Details
Returns from sale of recycled waste products
Energy cost reductions
Cost reduction Cost reduction by resource savings(including reductions in amount of water use
and wastewater treatment costs)
Total

74

Toyota Industries Report 2015

Amount
4,919
617
63
5,599

Toyota Industries Corporation• Obu Plant, Hekinan Plant, Morioka Works, Anjo Plant
Consolidated subsidiaries in Japan• IZUMI MACHINE MFG. CO., LTD., Tokyu Co., Ltd., Aichi
Corporation

Items to be Veriﬁed
1. Adequacy of the scope of data collection; validity of datacollection and calculation methods; validity of internalveriﬁcation
2. Trustworthiness and accuracy of collected/calculated data
as well as data reported to the Head Ofﬁce; accuracy of
methods of reporting to the Head Ofﬁce

Results
1. The verified sites retained original data (evidence) for all
statistics, which were confirmed to be valid as was themethod of data collection.
2. All discrepancies found during verification have beencorrected after respective causes have been identified.
3. Considerations of improvements will be made for datacollected using complex collection methods that may resultin calculation errors.

n Financial SectionP76− 84

Consolidated Eleven-Year SummaryP76− 77

Consolidated Balance SheetsP78− 79Consolidated Statements of Income

P

80

Consolidated Statements of Comprehensive Income

P

81

Consolidated Statements of Changes in Net Assets

P

Consolidated Statements of Cash Flowsn Corporate Information

P

P

Board of Directors, Audit & Supervisory Board Members
and Managing Officers
Major Consolidated Subsidiaries

82− 8385− 89
P

P

84

85

86− 87

Major Production Bases

P

88

Investor Information

P

89

Note:
For details on the consolidated financial statements, please refer to the separate publication,
which is also posted on the following Website:
www.toyota-industries.com

75Consolidated Eleven-Year Summary
Financial Section /Corporate Information

Toyota Industries Corporation
Years ended March 31

Millions of yen

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

¥2,166,661¥2,007,856¥1,615,244¥1,543,352¥1,479,839¥1,377,769¥1,584,252¥2,000,536¥1,878,398¥1,505,955¥1,241,538

For The YearNet sales

117,574

107,691

77,09870,092

68,79822,002(6,621)

96,853

89,95464,04053,120170,827

138,133

86,83680,86673,911

31,756

14,343

126,488

108,484

80,63570,912

Net income (loss)

115,263

91,705

53,11958,59447,205(26,273)(32,767)

80,46059,46847,07743,357¥ 126,395¥109,479¥89,459¥58,404

26,963¥ 104,495¥ 104,205¥ 129,023¥130,121¥111,321

Depreciation

70,78264,153

57,954

59,83062,372

73,23887,21983,74474,44964,423

51,277

Research and development expenses

47,78546,32639,05732,07027,78826,826

33,64636,75034,54831,16630,051367.06¥292.76¥170.36¥188.02(84.33)¥ (105.16)

366.99292.57170.35————257.43189.66146.02135.03

Total net assets per share

7,500.16

5,640.08

4,719.66

3,662.26

3,300.17

3,390.02

2,987.16

4,483.32

5,612.11

5,044.45

3,504.80

		Cash dividends per share

110.00

85.00

55.00

50.00

50.00

30.00

40.00

60.00

50.00

38.00

32.00

Total assets¥4,650,896¥3,799,010¥3,243,779¥2,656,984¥2,481,452¥2,589,246¥2,327,432¥2,965,585¥3,585,857¥3,245,341¥2,326,824

Investment in tangible assets¥

38,254¥Per share of common stock (yen):
		Net income (loss) per share—basic
		Net income per share—diluted
		

¥

¥

151.51¥¥

257.50¥

189.88¥

146.16¥

135.09Consolidated Eleven-Year Summary

Operating income (loss)
Ordinary income

At Year-End
Total net assets

2,425,929

1,829,326

1,524,933

1,197,841

1,075,939

1,104,929

977,670

1,453,996

1,810,483

1,611,227

1,115,747

Common stock

80,46280,46280,46280,46280,46280,46280,46280,46280,46280,46280,462

Number of shares outstanding (excluding treasury stock) (thousands)

314,155

313,730

312,207311,687

311,564

311,570

311,577

311,589

312,075

319,320

318,237¥ 182,191¥155,059¥151,299¥101,718¥ 153,661¥ 203,452

65,768¥ 188,805¥ 177,467¥ 131,784¥ 100,095(160,769)(118,483)(274,210)(9,403)(187,574)(36,855)(114,217)(138,789)(164,446)(205,013)(128,230)

Cash FlowsNet cash provided by operating activities
Net cash used in investing activities
Net cash provided by (used in) financing activities
Cash and cash equivalents at end of year¥

(8,918)

6,183

7,050

10,279(85,728)(38,230)

120,971(33,992)(19,749)

85,17250,020248,706

226,406

179,359

296,811

195,566

317,590

188,011

121,284

108,569

112,596

100,535

5.6

5.7

4.1

5.4

4.5

(2.6)

(2.8)

5.1

3.5

3.5

4.1

Indices
Return on equity (ROE) (%)
Return on assets (ROA) (%)

2.7

2.6

1.8

2.3

1.9

(1.1)

(1.2)

2.5

1.7

1.7

2.0

Operating profit margin (%)

5.4

5.4

4.8

4.5

4.6

1.6

(0.4)

4.8

4.8

4.3

4.3

Equity ratio (%)

50.7

46.6

45.4

43.0

41.4

40.8

40.0

47.1

48.8

49.7

48.0

¥ 248,854¥216,175¥155,234¥161,876¥ 150,481

71,608¥ 222,125¥ 191,007¥ 150,674¥ 128,381

52,52349,33347,41243,51640,82539,91639,52836,09632,97730,990EBITDA (millions of yen)
Number of employees¥90,521
38,903¥

1. Investment in tangible assets and depreciation apply to property, plant and equipment. They do not, however, include materials handling equipment leased
under operating leases.
2. Net income (loss) per share is computed based on the average number of shares for each year.
3. ROE and ROA are computed based on the average total net assets and total assets, respectively, for each year.
Investment securities are stated at market value.
4. Operating profit margin = Operating income (loss) / Net sales
5. Equity ratio = (Total net assets – Subscription rights to shares – Minority interests) / Total assets
6. EBITDA = Income before income taxes + Interest expenses – Interest and dividends income + Depreciation and amortization76

Toyota Industries Report 201577

Consolidated Balance Sheets

Millions of yen

2015

Millions of yen

Assets¥226,383
50,765
246,676
50,12246,012
77,98938,78253,47025,961
59,727(3,832)

944,901

872,058

423,670(250,488)
173,181
1,068,628(747,732)
320,895
159,660(120,309)
39,351
120,652
53,451

395,692(238,697)
156,995
976,511(703,217)
273,294
149,580(114,281)
35,298
119,10741,418

			Total property, plant and equipment

707,532

626,114

		Intangible assets:
			Goodwill
			Other intangible assets

95,98596,716

100,81490,068

			Total intangible assets

192,702

190,882

		Investments and other assets:
			Investment securities
			Deferred tax assets
			Lease investment assets
			 Net defined benefit assets
			 Other investments and other assets
			 Allowance for doubtful accounts

2,593,522
18,228135,958
28,28930,622(860)

1,926,353
15,285
118,849
21,501
28,291(328)

			Total investments and other assets
		Total fixed assets
Total assets

2,805,760
3,705,995¥4,650,896

2,109,954
2,926,951¥3,799,010

Fixed assets:
		Property, plant and equipment:			Buildings and structures
				Accumulated depreciation
				Buildings and structures, net
			 Machinery, equipment and vehicles
				Accumulated depreciation				 Machinery, equipment and vehicles, net
			 Tools, furniture and fixtures
				Accumulated depreciation				 Tools, furniture and fixtures, net
			Land			Construction in progress

78

Toyota Industries Report 2015¥ 205,816
99,736—47,05345,66529,245
13,686
636
626
210,721¥196,904
120,058
20,524
29,13947,644
29,13825,962
1,458
619
191,903

		Total current liabilities

653,187

663,353

Long-term liabilities:
		Bonds payable
		 Long-term loans payable		Lease obligations
		 Deferred tax liabilities
		 Net defined benefit liabilities
		 Other long-term liabilities

185,998
421,154
117,185
737,268
86,766
23,404

212,128
323,400
122,151
567,859
63,854
16,936

		Total long-term liabilities
Total liabilities

1,571,779
2,224,967

1,306,330
1,969,684

80,46280,462

105,592
644,165(41,509)

105,654
563,957(43,012)788,711707,062

Accumulated other comprehensive income:		 Valuation difference on available-for-sale securities
		 Deferred gains or losses on hedges
		 Foreign currency translation adjustment
		 Defined benefit plan adjustments

1,523,393(19)
55,598(11,463)

1,022,525(139)
44,649(4,629)		Total accumulated other comprehensive income
Subscription rights to shares
Minority interests
Total net assets
Total liabilities and net assets

1,567,509
72
69,6362,425,929¥4,650,896

1,062,404
330
59,528
1,829,326¥3,799,010

Liabilities¥ 247,273
58,250265,504
55,86834,08586,86543,32064,651
24,23468,603(3,756)

		Total current assets

2014

Current liabilities:
		 Trade notes and accounts payable
		 Short-term loans payable
		Commercial paper
		 Current portion of bonds
		Lease obligations
		Accounts payable—other		 Accrued income taxes
		 Deferred tax liabilities
		 Allowance for bonuses to directors
		 Other current obligations

Consolidated Balance Sheets

Current assets:
		 Cash and deposits
		 Cash deposits for cash collection and deposit services
		 Trade notes and accounts receivable
		 Lease investment assets
		Short-term investments
		 Merchandise and finished goods
		 Work in process
		 Raw materials and supplies
		 Deferred tax assets
		 Other current assets
		 Allowance for doubtful accounts

2015

2014

Financial Section /Corporate Information

Toyota Industries Corporation
As of March 31, 2015 and 2014

Net Assets
Shareholders’ equity:
		Capital stock			Authorized — 1,100,000,000 shares
			 Issued— 325,840,640 shares as of March 31, 2015					 325,840,640 shares as of March 31, 2014
		Capital surplus
		Retained earnings
		Treasury stock			 11,684,749 shares as of March 31, 2015
			 12,109,864 shares as of March 31, 2014
		Total shareholders’ equity

79Consolidated Statements of Income

Consolidated Statements of Comprehensive Income

Toyota Industries Corporation
For the years ended March 31, 2015 and 2014
Millions of yen

Millions of yen

2015

2014

Net sales¥2,166,661¥2,007,856

Income before minority interests

Cost of sales

1,765,861

1,651,573

Other comprehensive income:Gross profit

400,799356,282

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

2014¥121,674¥94,198

501,084

192,795

120

97

Sales commissions

16,291

13,832Foreign currency translation adjustment

13,36233,588

Salaries and allowances

97,03885,831Retirement benefit expenses

4,176

3,788

Defined benefit plan adjustments(6,725)—

Depreciation

13,968

11,125

Research and development expenses

41,93039,363

Others109,819

94,647

Total selling, general and administrative expenses

283,224

248,590

117,574

107,691

Interest income

12,357

11,205

Dividends income

52,95538,602735

1,106

Equity in net earnings of affiliated companies

1,790

Other non-operating income

10,878

Total non-operating income

78,7172,294
7,319
60,527

Interest expenses

15,876

16,023

Loss on disposal of fixed assets

1,665

1,345

Other non-operating expenses

7,922

12,71825,465
170,827
170,827
41,181
7,971
49,153
121,6746,410¥ 115,263

30,086138,133
138,133
40,6703,263
43,934
94,1982,493¥ 91,705

Operating income
Non-operating income:Gain on sales of marketable securities

Non-operating expenses:

Total non-operating expenses
Ordinary income
Income before income taxes and minority interests
Income taxes—current
Income taxes—deferred
Total income taxes
Income before minority interests
Minority interests in income
Net income

Share of other comprehensive income of associates accounted for using equity method
Total other comprehensive income
Comprehensive income

109

526

507,952

227,007629,626

321,206

620,368

315,759

9,258

5,447

Profit attributable to:
Owners of the parent
Minority interests

Consolidated Statements of Income / Consolidated Statements of Comprehensive Income

Selling, general and administrative expenses:

2015

Financial Section /Corporate Information

Toyota Industries Corporation
For the years ended March 31, 2015 and 2014

Yen

Net income per share­—basic¥  367.06¥  292.76

Net income per share­—diluted

366.99292.577,500.16

5,640.08

110.0085.00

Net assets per share
Cash dividends per share

80

Toyota Industries Report 201581

Consolidated Statements of Changes in Net Assets

Toyota Industries Corporation
For the year ended March 31, 2014
Millions of yen

Millions of yen

Shareholders’ equity

Balance at March 31, 2014

Capital stock

Capital surplus

Retainedearnings¥80,462¥105,654¥563,957

Treasury stock

Total
shareholders’equity¥(43,012)¥707,062(3,668)80,462

105,654560,288

Shareholders’ equity

Balance at March 31, 2013

703,393

Changes of items during theperiodDividends from surplus(31,386)(31,386)

Net income

115,263

115,263

Repurchase of treasury stock(61)

Disposal of treasury stock

(20)

(20)

1,523

1,461

Balance at March 31, 2015

(61)

83,876

1,502

85,317¥80,462¥105,592¥644,165¥(41,509)¥788,711¥80,462¥105,898¥492,578

Balance at March 31, 2014

¥1,022,525

Deferred gains
or losses onhedgesDefinedbenefit planadjustments¥(139)¥44,649¥ (4,629)

1,022,525(139)

44,649(4,629)91,70591,705

Total changes of items during theperiodTotal
Subscription
accumulated
rights toothersharescomprehensive
income(244)¥1,062,404¥ 330

1,062,404

330

Minority
interests

Total net
assets¥59,528¥1,829,326

256(3,412)

59,784

1,825,914

Net income

115,263

Repurchase of treasury stock(20)

Disposal of treasury stock

1,461

Net changes of items other thanshareholders’ equity

500,868

Total changes of items during theperiod500,868

120

10,949(6,833)505,105

(258)

9,852

600,015¥1,523,393¥ (19)¥55,598¥(11,463)¥1,567,509¥ 72¥69,636¥2,425,929

Balance at March 31, 201582

Toyota Industries Report 2015

5,489

5,245

—

(244)

71,378

5,393

76,527¥80,462¥105,654¥563,957¥(43,012)¥707,062

Accumulated other comprehensive income(31,386)(6,833)(96)

Millions of yen

Dividends from surplus

10,949(96)

Net changes of items other thanshareholders’ equity

Changes of items during theperiod120¥630,534

Net income

Disposal of treasury stock

Cumulative effects of changes inaccounting policies
Restated balance¥(48,405)(20,326)

Millions of yen

Foreigncurrencytranslation
adjustment

Total
shareholders’equity(20,326)

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities

Treasury stock

Dividends from surplus

Balance at March 31, 2014—

Retainedearnings

Repurchase of treasury stock

Net changes of items other thanshareholders’ equity
Total changes of items during theperiodCapital surplus

Changes of items during theperiod(3,668)(43,012)

Capital stock

Consolidated Statements of Changes in Net Assets

Cumulative effects of changes inaccounting policies
Restated balance

Financial Section /Corporate Information

Toyota Industries Corporation
For the year ended March 31, 2015

505,105

(258)

9,852

514,698

Balance at March 31, 2013

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedgesForeigncurrencytranslation
adjustment¥ 830,054¥(237)¥13,163

Definedbenefit planadjustments
¥  

—

Total
Subscription
accumulated
rights toothersharescomprehensive
income¥ 842,980¥ 1,478

Minority
interests

Total net
assets¥49,939¥1,524,933

Changes of items during theperiodDividends from surplus(20,326)

Net income

91,705

Repurchase of treasury stock(96)

Disposal of treasury stock

5,245

Net changes of items other thanshareholders’ equity

192,470

97

31,485(4,629)219,423(1,147)

9,588

227,865

Total changes of items during theperiod192,470

97

31,485(4,629)219,423(1,147)

9,588

304,392¥1,022,525¥(139)¥44,649¥(4,629)¥1,062,404

330¥59,528¥1,829,326

Balance at March 31, 2014¥83

Consolidated Statements of Cash Flows

Board of Directors, Audit & Supervisory Board
Members and Managing Officers(As of June 11, 2015)

Financial Section /Corporate Information

Board of Directors

Toyota Industries Corporation
For the years ended March 31, 2015 and 2014
Millions of yen

84

Toyota Industries Report 20152014¥170,827
127,463663(65,312)
15,876(1,790)(16,129)(20,142)
5,100(30,048)
186,507
65,077(15,622)(53,770)
182,191¥138,133
111,826504(49,807)
16,023(2,294)(13,469)(15,459)(169,842)
11,244(6,713)
1,158
(947)
—
(783)
711
12,896(8,495)(160,769)(131,672)
12,879(32,015)(24,861)
119,053(40,478)
20,000(29,284)(20)(31,386)(516)
36(21,460)(8,918)9,797
22,300226,406¥248,706(59,236)
128,203(60,721)

ChairmanPresident

Tetsuro Toyoda

Akira Onishi

Executive Vice President

Executive Vice President

Executive Vice President

Kazue Sasaki

Hirotaka Morishita

Shinya Furukawa

6,305(32,107)
159,655
49,782(15,517)(38,861)
155,059

2,211(1,137)
265
(867)
640
38,390(7,177)(118,483)

26,660(4,505)(96)(20,326)(454)
270(3,609)6,183
4,286
47,046
179,359¥226,406

Senior Managing Directors

Masaharu Suzuki
Norio Sasaki
Toshifumi Ogawa
Takuo Sasaki
Toshifumi Onishi

Directors

Takaki Ogawa
Kan Otsuka
Taku Yamamoto
Keiichi Fukunaga

Shuzo Sumi
Kenichiro Yamanishi
Mitsuhisa Kato

Audit & Supervisory Board Members
Full-Time Audit & Supervisory Board Members

Kakuo Ishikawa
Kohei Nozaki

Audit & Supervisory Board Members

Toshio Mita
Hans-Juergen Marx
Takahiko IjichiManaging Officers
Senior Managing Officers

Hiroaki Asai
Hirooki Fujiwara
Yukihisa Tsuchimoto
Takashi Ito

Managing Officers

Toshiya Yamagishi
Junichi Harada
Mikihiko Okamoto
Yasuhiro Murata
Yojiro Mizuno
Masahiro Kawaguchi
Susumu Toyoda
Yuji Ishizaki
Keizo Hara
Kiyotsugu Kurimoto
Masafumi Kunito

Consolidated Statements of Cash Flows / Board of Directors, Audit & Supervisory Board Members and Managing Officers

Cash flows from operating activities:
Income before income taxes and minority interests
		Depreciation and amortization
		Increase (decrease) in allowance for doubtful accounts
		Interest and dividends income
		Interest expenses
		Equity in net (earnings) losses of affiliates
		(Increase) decrease in receivables—trade		(Increase) decrease in inventories
		Increase (decrease) in payables—trade		Others, net
		Subtotal
		 Interest and dividends income received
		 Interest expenses paid
		 Income taxes (paid) refunded
Net cash provided by operating activities
Cash flows from investing activities:
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
Proceeds from acquisition of subsidiaries’ stock resulting in change in scope of consolidation
Payments for loans madeProceeds from collections of loans
Net (increase) decrease in time deposits
Others, net
Net cash used in investing activities
Cash flows from financing activities:
Increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of bonds
Repayments of bonds
Payments for repurchase of treasury stocks
Cash dividends paid
Cash dividends paid to minority shareholders
Proceeds from payment by minority shareholders
Others, net
Net cash provided by (used in) financing activities
Translation adjustments of cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

2015

Toshihiko Shimizu
Koichi Ito
Yasushi Kawai
Hiroaki Kayukawa
Kazuyuki Yamaguchi
Toru Inagawa
Hiroshi Matsumoto
Kota Otoshi
Norio Wakabayashi
Kazunari Masuoka

85

Major Consolidated Subsidiaries(As of March 31, 2015)

Segment

Company Name

Location

Ownership
Ratio* (%)

Business Activities

Automobile

Ownership
Ratio* (%)

100.0

BT Products AB

MjölbyProduction of materials handling equipment

100.0

Aichi Corporation

Ageo-shi, Saitama

Production of aerial work platforms

52.2

Toyota Industries Europe AB

MjölbyHolding company for materials handling equipment business in Europe

100.0

TOYOTA L&F Fukui Co., Ltd.

Fukui-shi, Fukui

Sales and servicing of materials handling equipment

100.0

Toyota Material Handling Europe AB

MjölbyEuropean headquarters for materials handling equipment business

100.0

TOYOTA L&F Tokyo Co., Ltd.

Shinagawa-ku, Tokyo

Sales and servicing of materials handling equipment

100.0

Toyota Material Handling Sweden AB

BrommaSales and servicing of materials handling equipment

100.0

Nishina Industrial Co., Ltd.

Nagano-shi, Nagano

Production of parts for materials handling equipment and construction machinery

97.5

NorwayToyota Material Handling Norway AS

Trondheim

Sales and servicing of materials handling equipment

100.0

TOYOTA L&F Shizuoka Co., Ltd.
Takeuchi Industrial Equipment
Manufacturing Co., Ltd.
HANDA Casting Company

Shizuoka-shi, Shizuoka
Taketoyo-cho, Chita-gun,
Aichi
Handa-shi, Aichi

Sales and servicing of materials handling equipment

100.0

Finland

Toyota Material Handling Finland Oy

VantaaSales and servicing of materials handling equipment

100.0

Denmark

Toyota Material Handling Danmark A/SSlangerup

Sales and servicing of materials handling equipment

100.0

LatviaToyota Material Handling Baltic SIA.

Riga

Sales and servicing of materials handling equipment

100.0

Unica Co., Ltd.

PolandToyota Material Handling Polska Sp. z o.o.

Pruszków

Sales and servicing of materials handling equipment

100.0

Czech Republic Toyota Material Handling CZ s.r.o.

Rudna

Sales and servicing of materials handling equipment

100.0

Slovakia

Toyota Material Handling Slovensko s.r.o.

Bratislava

Sales and servicing of materials handling equipment

100.0

Hungary

Toyota Material Handling Hungary Ltd.

Budapest

Sales and servicing of materials handling equipment

100.0

Romania

Toyota Material Handling Romania s.r.l.

Bucharest

Sales and servicing of materials handling equipment

100.0

RussiaOOO Toyota Material Handling RUS

MoscowSales and servicing of materials handling equipment

100.0

Switzerland

Toyota Material Handling Schweiz AG

ZürichSales and servicing of materials handling equipment

50.0

Austria

Toyota Material Handling Austria GmbH

Wiener Neudorf

Sales and servicing of materials handling equipment

100.0

Toyota Material Handling Europe Brussels NV/SA Brussels

Sales and marketing of materials handling equipment

100.0

Toyota Material Handling Belgium NV/SA

Wilrijk

Sales and servicing of materials handling equipment

100.0

SwedenProduction of materials handling equipment parts

100.0

Production of foundry parts

100.0

Kiyosu-shi, Aichi

Production of in-house transporters

100.0

TOYOTA L&F Hyogo Co., Ltd.

Nishinomiya-shi, Hyogo

Sales and servicing of materials handling equipment

100.0

KTL Co., Ltd.

Koto-ku, TokyoManagement and operation of distribution centers

50.5

Wanbishi Archives Co., Ltd.

Minato-ku, Tokyo

Data storage, management, collection and delivery services

100.0

Asahi Security Co., Ltd.

Minato-ku, Tokyo

Cash collection and delivery and cash proceeds management

100.0

Taikoh Transportation Co., Ltd.

Kariya-shi, Aichi

Land transportation services

53.1

Advanced Logistics Solutions Co., Ltd.

Takahama-shi, Aichi

Planning, design and operation of distribution centers

100.0

Tokaiseiki Co., Ltd.

Iwata-shi, Shizuoka

Production of parts for compressors and engines

100.0

Altex Co., Ltd.

Hamamatsu-shi, Shizuoka

Production of compressor parts

100.0

Belgium

IZUMI MACHINE MFG. CO., LTD.

Obu-shi, Aichi

Production of specialized machine tools, friction welding machines and automotive parts

100.0

Nagao Kogyo Co., Ltd.

Nagoya-shi, Aichi

Production of parts for compressors, materials handling equipment and textile machinery

100.0

Netherlands

Toyota Material Handling Nederland B.V.

Ede

Sales and servicing of materials handling equipment

100.0

Miduho Industry Co., Ltd.

Nagoya-shi, Aichi

Production of parts for automobiles, compressors and materials handling equipment

100.0

U.K.

Toyota Material Handling UK Limited

Slough, Berkshire

Sales and servicing of materials handling equipment

100.0

Iwama Loom Works, Ltd.

Oguchi-cho, Niwa-gun, Aichi Production of compressor parts

100.0

Germany

Toyota Material Handling Deutschland GmbH

Isernhagen

Sales and servicing of materials handling equipment

100.0

Tokyu Co., Ltd.

Oguchi-cho, Niwa-gun, Aichi Production of compressor parts and industrial machinery

100.0

FranceToyota Industrial Equipment, S.A.

AncenisProduction of materials handling equipment

100.0

Ikeda-cho, Ibi-gun, Gifu

100.0

Toyota Material Handling France SAS

Marne La ValléeSales and servicing of materials handling equipment

100.0

Spain

Toyota Material Handling España, S.A.

Barberá del VallésSales and servicing of materials handling equipment

100.0

CESAB Carrelli Elevatori S.p.A.

Bologna

Production of materials handling equipment

100.0

Toyota Material Handling Italia S.r.l.

Bologna

Sales and servicing of materials handling equipment

100.0

Toyota Material Handling Greece SA

Markopoulo, Attica

Sales and servicing of materials handling equipment

100.0

TD Deutsche Klimakompressor GmbH

Bernsdorf

Production of compressors

65.0

SKM CORPORATION

Kariya-shi, Aichi

Sun Staff, Inc.

Kariya-shi, Aichi

Production of parts for textile machinery and materials handling equipment
Total construction management, security management, civil engineering/construction design work andreal estate management
Personnel placement and contract office staffing

Sun Valley Inc.

Kariya-shi, Aichi

Sales of goods, travel agency, organizing and running of events

100.0

Shine’s Co., Ltd.

Kariya-shi, Aichi

Management and operation of employee clubs

100.0

Toyota Industries Well Support Corporation Kariya-shi, Aichi

Planning and operation of benefit programs, administrative processing services for payroll accounting, etc.

100.0

Toyoda High System, Incorporated

Kariya-shi, Aichi

Planning, development, formulation and operation of information infrastructure and systems

100.0

Sun River Co., Ltd.

Suita-shi, Osaka

Sports facilities, real estate lease and restaurant management

100.0Country

Company Name

Location

Business Activities

U.S.A.

CanadaU.S.A.

Materials
Handling
Equipment

100.0

Italy

100.0

GreeceAutomobile

Cascade Corporation

Portland, Oregon

Production of materials handling equipment parts

100.0

Indiana Hydraulic Equipment, Corp.

Franklin, Indiana

Production of materials handling equipment parts

100.0

Industrial Components and Attachments, Inc.

Portland, Oregon

Holding company for materials handling equipment business in the U.S.A.

100.0

North Vernon Industry Corp.

North Vernon, Indiana

Production of materials handling equipment parts

100.0

Raymond-Muscatine Inc.

Muscatine, Iowa

Production of materials handling equipment

100.0

Germany

Textile Machinery Switzerland
OthersToyota Industries Electric Systems Europe GmbH München

Development and sales of electronics products

90.0

Toyota Textile Machinery Europe, AG

Uster

Sales and servicing of textile machinery

100.0

Uster Technologies AG

Uster

Production of yarn testing instruments and cotton classing instruments

100.0

SwedenToyota Industries Finance International AB

MjölbyFunding, loan and other financial services

100.0

India

Toyota Material Handling India Pvt. Ltd.

Delhi

Sales and servicing of materials handling equipment

92.9

Vietnam

Toyota Industrial Equipment Vietnam Co., Ltd.

Hung Yen

Production of materials handling equipment parts

90.0

Australia

Toyota Material Handling Australia Pty Limited

New South Wales

Sales and servicing of materials handling equipment

100.0

BT Manufacturing (Foshan) Co., Ltd.

Foshan, Guandong

Production of materials handling equipment

100.0

OthersOwnership
Ratio* (%)

North America

86

Business Activities

Sales and servicing of materials handling equipment*Including indirect investment

Automobile

Location

Akita-shi, Akita

Segment

Materials
Handling
Equipment

Company NameTOYOTA L&F Akita Co., Ltd.

Textile Machinery Hara Corporation

OthersCountry

Materials
Handling
Equipment

China

Sales of materials handling equipment

75.0

Production, sales and servicing of materials handling equipment

100.0

Rental and leasing of materials handling equipment

100.0

China

Toyota Material Handling (Shanghai) Co., Ltd.
ShanghaiToyota Material Handling Mercosur Indústria eSão Paulo
Comércio de Equipamentos Ltda
Toyota Material Handling Capital S.A.P.I. de C.V.,
Santiago de Querétaro
SOFOM E.N.R.
Toyota Industries Management (China) Co., Ltd. Shanghai

Logistics-related services for China-based companies

100.0

BrazilMexicoLogistics

The Raymond Corporation

Greene, New York

Production of materials handling equipment

100.0

Toyota Industrial Equipment Mfg., Inc.

Columbus, Indiana

Production of materials handling equipment

100.0

India

Kirloskar Toyota Textile Machinery Pvt. Ltd.

Bangalore

Production of automotive parts and textile machinery

98.9

Toyota Material Handling North America, Inc.

Columbus, Indiana

North American headquarters for materials handling equipment business

100.0

Indonesia

P.T. TD Automotive Compressor Indonesia

Bekasi

Production of compressors

50.1

Toyota Material Handling, U.S.A., Inc.

Columbus, Indiana

Sales of materials handling equipment

100.0

Toyota Industry (Kunshan) Co., Ltd.

Kunshan, Jiangsu

Production of automotive parts and materials handling equipment, etc.

63.4

G. N. Johnston Equipment Co., Ltd.

Mississauga, Ontario

Sales and servicing of materials handling equipment

100.0

TD Automotive Compressor Kunshan Co., Ltd.

Kunshan, Jiangsu

Production of compressors

77.6

Michigan Automotive Compressor, Inc.

Parma, Michigan

Production of compressors

60.0

Yantai Shougang TD Automotive Compressor Co., Ltd. Yantai, Shandong

Production of compressors

50.1

TD Automotive Compressor Georgia, LLC

Pendergrass, Georgia

Production of compressors

77.4

Toyota Textile Machinery (Shanghai) Co., Ltd.

ShanghaiInstallation and servicing of textile machinery

100.0

Toyota Industries Compressor Parts America, Co. Pendergrass, Georgia

Production of compressor parts

100.0

Toyota Industries Electric Systems North America, Inc. Novi, Michigan

Development and sales of electronics products

Jelcz-Laskowice

Production of diesel engines

40.0

Automobile
China
Textile Machinery China

90.0

n Affiliates Accounted for by the Equity Method

Textile Machinery U.S.A.

Toyoda Textile Machinery, Inc.

Charlotte, North Carolina Sales and servicing of textile machinery

100.0

Automobile

OthersToyota Industries North America, Inc.

Columbus, Indiana

100.0

U.S.A.

Toyota Industries Report 2015

North American headquarters

Major Consolidated Subsidiaries

Logistics

Segment
EuropeJapan

Materials
Handling
Equipment*Including indirect investment

Financial Section /Corporate Information*Including indirect investment

PolandToyota Motor Industries Poland Sp. z o.o.

87

Major Production Bases

Investor Information(As of March 31, 2015)

Plant

Location

Main Products

Start of Operations

Kariya Plant

Kariya-shi, Aichi

Textile machinery, compressors

1927

Obu PlantObu-shi, Aichi

Compressor parts

1944

Kyowa Plant

Obu-shi, Aichi

Electronic equipment, automotive press dies, production facilities, engine parts

1953

Nagakusa Plant

Obu-shi, Aichi

Vehicles1967

Corporate Head Office

Stock Exchange Listings

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

Tokyo and Nagoya (Ticker Code: 6201)

Number of Shareholders
14,958

Takahama-shi, Aichi

Materials handling equipment, materials handling systems

1970

Date of Establishment

Independent Accountant

Hekinan-shi, Aichi

Diesel engines, gasoline engines

1982

November 18, 1926

Higashichita Plant

Handa-shi, Aichi

Foundry parts, diesel engines

2000

Higashiura Plant

Higashiura-cho, Chita-gun, Aichi Compressor parts

2002

Common Stock

PricewaterhouseCoopers Aarata
Sumitomo Fudosan Shiodome Hamarikyu Bldg.
8-21-1 Ginza, Chuo-ku, Tokyo, 104-0061, Japan

Anjo Plant

Anjo-shi, Aichi

2007

No par value
Authorized: 1,100,000,000 shares
Issued:325,840,640 shares

Transfer Agent
Special Account Management Institution

Electronic equipment(including treasury stock)n Major Plants (Outside Japan)

Mitsubishi UFJ Trust and Banking Corporation
1-4-5, Marunouchi, Chiyoda-ku, Tokyo, 100-8212, Japan

Capital Stock80,462 million yen

Major Shareholders (Top 10)
Number of Shares Held(Thousands)

Percentage of Total
Shares in Issue (%)

Toyota Motor Corporation

76,60023.51

DENSO Corporation

29,647

9.10

Towa Real Estate Co., Ltd.

15,697

4.82

Toyota Tsusho Corporation

15,294

4.69

The Master Trust Bank of Japan, Ltd. <Trust Account>

10,138

3.11

Japan Trustee Services Bank, Ltd. <Trust Account>

7,584

2.33

Name

5
■
8■
9
■
7
■
6
■

10
■

2
3 ■
■
1
■
4
■

11 ■
12
■
13
■

14
■
15
■

Nippon Life Insurance Company

6,580

2.02

Aisin Seiki Co., Ltd.

6,578

2.02

Aioi Nissay Dowa Insurance Co., Ltd.

4,514

1.39

Toyota Industries Corporation Employee Ownership Program

4,266

1.31

176,902

54.29

Total
Company Name

Location

Main Products

Year of Foundation1

Toyota Industrial Equipment Mfg., Inc.

U.S.A.

Columbus, Indiana

Materials handling equipment

1988

2

The Raymond Corporation

U.S.A.

Greene, New York

Materials handling equipment

1922

3

Michigan Automotive Compressor, Inc.

U.S.A.

Parma, Michigan

Compressors

1989

4

TD Automotive Compressor Georgia, LLC

U.S.A.

Pendergrass, Georgia

Compressors

2004

5

BT Products AB

SwedenMjölbyMaterials handling equipment

1946

6

CESAB Carrelli Elevatori S.p.A.

Italy

Bologna

Materials handling equipment

1942

7

Toyota Industrial Equipment, S.A.

FranceAncenisMaterials handling equipment

1995

8

TD Deutsche Klimakompressor GmbHGermany

Bernsdorf

Compressors

1998

9

Toyota Motor Industries Poland Sp. z o.o.

PolandJelcz-Laskowice

Diesel engines

2002

10 Kirloskar Toyota Textile Machinery Pvt. Ltd.

India

Bangalore

Automotive parts, textile machinery

1995

11 Toyota Industry (Kunshan) Co., Ltd.

China

Kunshan, Jiangsu

Automotive parts, materials handling equipment, etc.

1994

12 TD Automotive Compressor Kunshan Co., Ltd.

China

Kunshan, Jiangsu

Compressors

2005

13 Yantai Shougang TD Automotive Compressor Co., Ltd. China

Yantai, Shandong

Compressors

2012

14 P.T. TD Automotive Compressor Indonesia

Indonesia

BekasiCompressors

2011

BrazilSão Paulo

Materials handling equipment

2004

15

88

Country

Toyota Material Handling Mercosur Indústria eComércio de Equipamentos Ltda

Toyota Industries Report 2015

Major Production Bases / Investor Information

Takahama Plant
Hekinan Plant

Financial Section /Corporate Informationn Major Plants (Parent Company)(As of March 31, 2015)

Notes: 1.	Toyota Industries Corporation also holds 11,684 thousand shares of treasury stock but is excluded from the above list.
2. Shares held for the purpose of trust services of respective banks are as follows:		 The Master Trust Bank of Japan, Ltd. (Trust Account)
10,138 (Thousands)
		 Japan Trustee Services Bank, Ltd. (Trust Account)
7,584 (Thousands)

Distribution of Shares
0.7%
3.6%
6.5%
Japanese corporate entities

18.4%

Foreign corporate entities and others

48.2%

Japanese financial institutions
Individuals, etc.
Treasury stock

22.6%

Japanese brokerages

892-1, Toyoda-cho, Kariya-shi, Aichi 448-8671, Japan
Telephone: +81-(0)566-22-2511 Facsimile: +81-(0)566-27-5650
www.toyota-industries.com

This report is printed on FSC™-certified paper that contributes to forest conservation
with ink derived from vegetables using a waterless printing process.
Printed in Japan