FY2008 Financial Results
Year ended March 31, 2008

April 25, 2008

I. Financial Summary

Financial Results (FY2008)
 Increase in net sales and ordinary income for 9th consecutive year
（Billion yen）

07/3

Net sales
Operatingincome
Ordinary
incomeNet
income1,878.3
89.9
108.4
59.4

08/3

2,000.5
96.8
126.4
80.4

ChangeChange (%)+122.2+6.5%(+186.9)(+10.3%)

+6.9

+7.7%

(+8.8)(+10.1%)+18.0+16.6%(+20.7)(+19.7%)+21.0+35.3%(+22.2)(+38.2%)

Figures in parentheses show the changes excluding the effects of changes in subsidiaries’ fiscal year-end

1 / 23

Earnings Forecast (FY2009)
 Decrease in income expected due to material costs, U.S. economy,exchange rate and change in accounting policy (depreciation)（Billion yen）

Net sales
OperatingincomeOrdinary
incomeNet
income08/3

09/3(Forecast)

ChangeChange (%)

2,000.5

2,050.0

+49.5

+2.5%

96.8

77.0

- 19.8- 20.5%

126.4

107.0

- 19.4- 15.4%

80.4

59.0

- 21.4- 26.7%2 / 23

Progress of Medium-Term Management Plan FY09 results to sustain performance Achieving medium-term targets, aiming for further growth
Ordinary income

108.4

126.4

80.6

107.0
2,050.0 billion

Net sales

1,505.9

06/3

07/3

Over 2 Trillion
Medium-term management plan

1,878.3

2,000.5140.0 billion

08/3

09/3 Forecast

11/3 Target

3 / 23

II. Growth Scenariosz Automobile
9 Car Air-Conditioning Compressor
9 Vehicle
9 Engine
9 Car Electronics

z Materials Handling Equipment

1. Automobile Segment—Business Environment
1. Global automobile market

TICO’s business fields
will also expand

Market growthMarket growth mainly in emerging
countries
OtherHighHigh growth
growth rates
rates

EuropeStable growth in Japan, U.S.
and European countries

NorthAmerica

Large
Large volume
volumeJapan05

06

07

1x

Car Air-Conditioning
Compressor

Accurately accommodate
global market expansionyear

2. Toyota (TMC) vehicle production volume

VehicleEngine8,090 8,530 units

thousand

7,360

Car Electronics•• TMC
TMC production
production expanding
expanding•• Production
Production ofof hybrid
hybridvehiclesvehicles andand diesel
diesel engine
enginevehiclesalsoincreasing
vehicles also increasing

0506

07

1x

Contribute to TMC’s
growth strategyyear

4 / 231. Automobile Segment—Car Air-Conditioning Compressor
1. Business environment

3. Toward further growth

Demand for car air-conditioning compressors
Global automobile market
Emerging
Emerging
countries
countries

DemandDemand for a balancebalancebetweenbetween performance
performance andandcost
costJapan, U.S.
U.S.
Japan,and Europe
Europeand

DemandDemand forfor even
even
greatergreater fuelfuel efficiency
efficiency

OtherEuropeNorth
America

Expand sales and emphasize distinctivenessfor new products that reflect customer needs◇ Deploy new products in accordancewith markets and vehiclecharacteristics
Target: BRICs and compact cars in Europe
At the forefront of new technologies

Japan050607

1x year

2. Main activities up to the 2nd year of the Medium-Term Management Plan
—For future growth—◇ New refrigerants◇ Electrically driven compressors
Unit sales

NewNew customers
customers acquisitionacquisition（thousand units）

Unit sales

06/3

08/3

Toyota Group

7,110

8,060

Non-Toyota Group

12,00013,800thousand units

New customers
Ford, Pugeot
Increase in types of19,110

20,46021,860 22,000

AC-equipped vehicles forexisting customers

Strengthen
Strengthen globalglobal production
production structure
structure◇TACG (U.S.), TDDK (Germany), TACK (China)

0607080911

planplan1x
FY5 / 23

1. Automobile Segment—Vehicle
1. Business environment

3. Toward further growth

TMC production volume

Contribute to TMC in terms ofvolume and vehicle models

Expand production worldwide
7,360

8,530 thousand units

3,900

4,310

3,790

4,190

4,220

05

06

07

Overseas 3,570

Japan

8,090

◇ Flexible response for vehicle models

Fully
Fully utilize
utilize
domestic
domestic
production
production
capacity
capacity◇ Be the leader among bodymanufacturers in terms of QCD
1xyear

2. Main activities up to the 2nd year of the Medium-Term Management Plan
—For future growth—

Unit sales

ExpandExpand thethe number
number ofof models
models thatthat cancan be
be produced
produced
350◇ From compact to medium-sized vehicles

370

360

thousand units

300

QCD
QCD No.
No. 11 (Quality,(Quality, Cost,Cost, Delivery)
Delivery)
Vehicle shipment quality
GoodContinue to earn the Superior Quality
Performance Award from TMC

06
TICO

Co. A

Co. B

Co. F

07

08

09

11planplan

1x
FY

6 / 231. Automobile Segment—Engine
1. Business environment

3. Toward further growth
Diesel engines

TMC production
volume•Environmental regulations•Soaring crude oil prices

Automakers accelerate
development and sales
Daimler:

05 06 07

1xYearEngineEngine unit
unit production
production
will
will also
also increase
increase along
along
withwith increase
increase inin vehicles
vehicles2006 Japan
2008 North America (planned)
Volkswagen
2009 Japan (planned)
Honda2009 and beyond
North America, Japan (planned)

Firmly respond to theexpanding market for clean
diesel engines◇ Develop next-generation clean dieselengines◇ Timely strengthening of production
capacity

Consigned production in
response to burden on TMC’sdomestic production volume
Unit sales

2. Main activities up to the 2nd year of the Medium-Term Management Plan
—For future growth—
thousand units

Development
Development ofof clean
clean diesel
diesel engines
engines
ADAD type
type (2005),(2005), VD
VD typetype (2007)(2007)
Strengthen
Strengthen development
development structure
structure(increasetesting
facilities(increase testing facilities andand personnel)
personnel)

Received
Received FY08
FY08
TechnologyTechnologyDevelopment
DevelopmentAwardAward fromfrom TMC
TMC4905105803600607809

11

planplan

1xFY

7 / 23

1. Automobile Segment—Car Electronics
1. Business environment

3. Toward further growthEstablish technologies toreduce costs through morecompact and lighter system
Develop devices for plug-in
hybrid vehicles

TMCWorldwide

Hybrid vehicle market

MarketMarket forfor hybrid
hybrid vehicles,vehicles,
centeringoncentering on Toyota
Toyota vehicles,
vehicles,isis expanding
expanding

2,350
05

06

Exhibited at Tokyo Motor Show 2007

thousandunits

3,13007

1x year

2. Main activities up to the 2nd year of the Medium-Term Management Plan
—For future growth—Expansion
Expansion ofof vehicle
vehicle models
modelsfittedfitted withwith DC-DC
DC-DC converters
converters◇ Charger

Received
Received FY08
FY08
Technology
Technology
Development
Development
AwardAward fromfrom TMC
TMC

Build a mass production
structure at the new Anjo plant
Net sales
Billion yen

30−

20−

Prius
(97~)

Harrier Hybrid(05~)

Camry Hybrid(06~)

Lexus LS600h(07~)

Strengthen
Strengthen relationships
relationships by
by offeringoffering development
development
proposals
forTMC
proposals for TMC

10−060708

09

11planplan

1x
FY

8 / 232. Materials Handling Equipment Segment
Business environment
Lift truck markets

930 thousand units
820

Moderate
Moderate growth
growth740
Australia,Asia,Others
EuropeNorthAmerica
Japan05

Japan

06

07

08 forecast

North America

101xEurope

Year

Australia, Asia, Others

400,000 units

200,000 units

240,000 units

90,000 units

0710

Virtually
the same level

07

10

Virtually
the same level

07

10Russia and Eastern
Europe drive
expansion07

10

Large expansion
centering on Chinaand India

9 / 23

2. Materials Handling Equipment Segment
Main activities up to the 2nd year of the Medium-Term Management Plan
—For future growth—EuropeNorth America

RussiazEnhance sales/services by integrating sales
channels (20 countries)
zStrengthen production capacity of Sweden
plant
zRaise share of investment in TIESAzIntroduce TPS through TMHMNA(which coordinates North Americanproduction)zEstablish a subsidiary for stablesupplies of key components(hydraulic valves)zExpand sales via cooperation withJapanese trading companies

ChinaIndia
zCommence sales of lift trucks at KTTM
(subsidiary)zEstablish sales bases in Delhi, Mumbai andCoimbatore

zEnhance sales/services byintegrating sales channels
zExpand production capacity at TIK(subsidiary)

BrazilJapan
zStrengthen production capacity by eliminatingbottleneck processes
zEstablish TMHG training centerzEstablish a subsidiary for stable supplies of keycomponents (counterweights)
zDevelop key components
zJoint development through TMHG
zConsolidate sales functions into the Takahama
Plant

zEnhance sales/services byintegrating sales channels

WorldwidezUndertake full model changes for 1- to 3-ton internal
combustion lift trucks

PromotePromote initiatives
initiatives forfor development,
development, production,production, salessales andand service
servicethatthat consider
consider regional
regional characteristics
characteristics
10 / 232. Materials Handling Equipment Segment
Toward further growth Based on measures implemented up to the previous fiscal year, we will strive
to expand sales at a rate exceeding market growth and raise profit margins

Maximize benefits of channel integration

North
America

Utilize respective strengths of TOYOTA and Raymond brands

Australia,
Asia,
OthersJapan

Strengthen sales activities that respond to higher demand
China, India

Strengthen sales and service networks

Create new markets through proposal-based
sales and BT-brand products

Optimal production/supply
structure (respond tofluctuations in demand ineach region)

EuropeRaise profit margins
Standardizationof key components

Expand sales at a rate exceeding market growth

Development

Unit sales

Strengthen presence in existing markets andexpand sales networks in emerging markets

thousand units

184

193

05

06

203

213

Accelerate synergies between TOYOTA andBT brands
07

08

plan

10

plan

1x
FY

11 / 23

III. Initiatives for theEnvironment and Human
Resources Development

Environment
Action policies
Curbing globalwarmingGlobalGlobal Environmental
Environmental Commitment
Commitment
FourthEnvironmental
Action Plan(2006-2010)

Realize environmental
management throughout
the entire Toyota
Industries Group

Recycling
resources
Reducing
environmental risk
factors
Consolidated
environmental
management

Initiatives in product fields(1)Air-jet loom
(Feb. 2003)(2)Internal combustion lift
truck (Sep. 2006)(3)DC-DC converter forelectric power steering(Apr. 2007)
Equipped on the LEXUS LS600h

Air consumption
reduced 50%

Previous
model

New
model

Fuel consumption
reduced 14%

Previous
model

New
model

Lead content reduced 69%

Previous
model

Newmodel12 / 23

Environment
Production initiatives
Incorporating environmental measures from the plant construction stage
Cooling tube (summer)
For air conditioning

Solar power

Windpower

External airintake

Rooftopgreening

Wellwater
pre-cooling

Underground pre-cooling

Mirror Duct System
Award from Director of Chubu
Regional Bureau （FY08）

Captures sunlight and used in offices

Promoting energy efficiency by improving production processes
Eliminate post-processes (car wash process)by introducing new “knife-cut” process

Japan Environment ManagementAward (FY08)

DryingTop coatingCooling

DryingWashing

Wet sanding

DryingEnvironmental Project AwardIntermediatecoatingDrying

Minister’Minister’s Awardfor Excellent
Examples of Energy
Conservation

Electrocoating

Introduce new methods forautomobile painting process“Reduction of CO2emissions by reducing
the use of cast iron”
iron”

13 / 23

Human Resources Development
Specialized Techniques

Spirit of Harmony

Management Techniques

Raising overall capabilities

Nurturing a sense ofsolidarity and teamwork

Discovering problems andmaking improvements

We promote close communication throughon-the-job training by senior employees
via programs such as the stewardshipprogram.

We cultivate human resources capable ofpromoting manufacturing by gathering people
from each business division at our “TPSDojo” and carrying out continuous
improvement activities.

We stress learning from mistakes and provide
training using case examples, beginning withlearning the design concepts of Sakichi
Toyoda through assembly of the Type G
automatic loom.

Nurturing experts

Acquiring leadership abilities
EarnedEarnedgold
goldmedal
medalat
atInternationalInternational
SkillsFestivalforAll,
Skills Festival for All,JapanJapan2007
2007
(Nov.
07)
(Nov. 07)
Won gold medal as Japan’s representativein the mechanical assembly category

At our Technical Learning Center, we
nurture “Top Guns” in manufacturing by
thoroughly teaching leading-edge
technologies and skills.

WonWonthree
threegold
goldmedals
medalsat
atNationalNational
SkillsCompetition（Mar.
Skills Competition （Mar.08)
08)
Seven individuals and two teams competed infive skills categories, winning three gold
medals, three silver medals and one bronze
medal.

We foster the ability to become leaders
through such training as “teaching work
responsibilities in an easily understood andprecise manner” and “creating good humanrelationships and dynamic workplaces filledwith vitality.”

14 / 23

IV. Financial Results

Financial Results (FY2008)
 Increase in net sales and ordinary income for 9th consecutiveyear（Billion yen）

07/3

Net sales
OperatingincomeOrdinaryincome
Net
income1,878.3
89.9
108.4
59.4

08/3

2,000.5
96.8
126.4
80.4

ChangeChange (%)+122.2+6.5%(+186.9)(+10.3%)

+6.9

+7.7%

(+8.8)(+10.1%)+18.0+16.6%(+20.7)(+19.7%)+21.0+35.3%(+22.2)(+38.2%)

Figures in parentheses show the changes excluding the effects of changes in subsidiaries’ fiscal year-end15 / 23

Net Sales by Segment (FY2008)
 Increase in net sales in all segments
Billion yen
1,000904.8(+ 64.4）( + 122.2)
07/3
1,878.3

969.2※（+ 15.9）

767.2 783.1

800

600

Vehicle

500

470.2

Engine08/3
2,000.5

Compressor

500.1

400
300

600

167.4 178.7

200

235.4 253.5

1000400

07/3 08/3（+ 28.1）

200

89.4
0117.5（+ 7.8）（+ 5.9）66.2

58.3 64.2

TextileMachinery

Others58.4

07/3 08/3
Automobile

Materials
Handling
Equipment

Logistics※ Excluding the effects of changes in subsidiaries’ fiscal year-end, net sales totaled 702.5 billion, an increase of 80.6 billion yen.

16 / 23

Operating Income by Segment (FY2008)
 Increase in operating income in Automobile, Logistics andTextile Machinery segments
Billion yen
50

07/3
89.9

47.2
(+ 8.0）41.5
40( + 6.9)

08/3
96.8

※（ - 7.4）

39.8

33.5
30

20

（+ 0.4）10

1.70（+ 2.5)（+ 3.2）

4.2

4.2

6.3

6.7

1.0

07/3 08/3
Automobile

Materials
Handling
Equipment

Logistics

TextileMachineryOthers※ Excluding the effects of changes in subsidiaries’ fiscal year-end, operating income totaled 45.3 billion, a decrease of 5.5 billion yen.

17 / 23

Change in Ordinary Income (FY2008)z Cost-reduction efforts and sales expansion offset increase indepreciation and material costs
Year-on-year comparison (FY07 and FY08)+ 11.9+ 18.5

-7.6
126.4

Expenses and others

Change in subsidiaries’
fiscal year-end

08/3
114
162

-2.7

Labor costs

→→

-6.4

Material costs

07/3
117
150

Depreciation

Cost reductions

07/3

USD
EURO

Non-operating income

108.4

SalesincreasesBillion（YoY ＋18.0 billion yen）
-6.8+ 0.4

Exchange rates+ 20.0-9.3

08/3

18 / 23

Earnings Forecast (FY2009)
 Decrease in income expected due to material costs, U.S. economy,exchange rate and change in accounting policy (depreciation)（Billion yen）

Net sales
OperatingincomeOrdinary
incomeNet
income08/3

09/3(Forecast)

ChangeChange (%)

2,000.5

2,050.0

+49.5

+2.5%

96.8

77.0

- 19.8- 20.5%

126.4

107.0

- 19.4- 15.4%

80.4

59.0

- 21.4- 26.7%19 / 23

Net Sales by Segment (FY2009 Forecasts)
 Increase in net sales in Material Handling Equipment and Logistics
segments
Billion yen
1,000(+ 0.8）

( + 49.5)
08/3
2,000.5

969.2 970.0（+ 56.9）

783.1

800

840.0

Vehicle600
500

Engine09/3
2,050.0

Compressor

500.1 490.0

400
300

600

178.7 200.0

200253.5 240.0

1000

400

08/3 09/3 Forecast（+ 12.5）

200

117.5 130.0（- 16.2）

66.2 50.00（ - 4.2 ）64.2 60.0

08/3 09/3 Forecast
Automobile

Materials
Handling
Equipment

Logistics

TextileMachinery

Others

20 / 23

Change in Ordinary Income (FY2009 Forecasts)
 Decrease in profits due to marterials costs, exchange rate andchange in accounting policy (depreciation)
Year-on-year comparison (FY08 and FY09)

126.4

08/3

→→

09/3
100
155-9.3
-5.0
-4.5
107.0
Expenses and others

Cost reductions

USDEURO

08/3
114
162

-10.0

Labor costs

Non-operating income

Billion yen(YoY –19.4 billion yen)

Depreciation

Sales increases

23.0

-22.0

Exchange rates

0.4

Material costs

8.0

09/3
Forecast

21 / 23

Capital Expenditures and Depreciation
Billion yen

140
120

130.1

129.0

111.3

100

93.0
64.4
51.2

40
200

05/3

06/3

07/3

83.7Depreciation

Capital expenditure

74.4

8060

110.0

104.2

09/3 Forecast

08/3

Billion yen

50

Breakdown of capital expenditures

45.5

4030

27.0 27.9

27.0

25.7
21.0

20

26.4

30.5

30.3 29.0
24.0

11.7

9.0

100

4.4 3.8
07/3 08/3 09/3 Forecast
Compressor Vehicle/Engine

Material
Handling
Equipment

Foundry/
Electronics

Others

22 / 23

Cash Dividends and Payout Ratio Annual cash dividends of 60 yen, an increase of 10 yen (08/3, 09/3)
31.7％

Consolidated payout ratio

23.7

26.0

26.3
23.3

60

Yen

30

Year-end30

Interim6050283220191305/3

1806/32207/3

2808/3

Dividends per share

323809/3 Forecast

23 / 23

Cautionary Statement with Respect
to Forward-Looking Statements
This presentation contains projections of business results as well as statements regarding
business plans, forecasts, strategies, and other forward-looking statements that are not tobe taken as historical fact. Projections and forward-looking statements are based on thecurrent expectations and estimates of Toyota Industries and its Group companies. All
suchprojections

andforward-lookingstatements

arebased

onmanagement’s

assumptions and beliefs derived from the information available to it at the time ofproducing this report and are not guarantees of future performance. You should also beaware that certain risks and uncertainties could cause the actual results of Toyota
Industries and its Group companies to differ materially from any projections or forwardlooking statements appearing in this report. These risks and uncertainties include, but are
not limited to, the following: 1) economic trends, 2) various competitive pressures,3) changes in relevant laws and regulations, and 4) fluctuations in exchange rates.