Toyota Industries Report

2 0 12Financial Review for the Year Ended March 31, 2012

Consolidated Eleven-Year Summary

P1Management’s Discussion and Analysis ofFinancial Condition and Results of Operations

P2−7

Consolidated Balance Sheets

P8−9

Consolidated Statements of Income

P10

Consolidated Statements of Comprehensive Income

P11

Consolidated Statements of Changes in Net Assets

P12−13

Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
Report of Independent Auditors

P14
P15−45
P46

Consolidated Eleven-Year Summary
Toyota Industries Corporation
Years ended March 31
The figures in this table are unaudited.
Millions of yen

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

¥1,543,352¥1,479,839¥1,377,769¥1,584,252¥2,000,536¥1,878,398¥1,505,955¥1,241,538¥1,164,378¥1,069,218¥ 980,163

For The YearNet sales
Operating income (loss)

70,092

68,79822,002(6,621)

96,853

89,95464,04053,12052,63152,477

46,330Ordinary income

80,86673,911

31,756

14,343

126,488

108,484

80,63570,91258,97051,37547,865

Net income (loss)

58,59447,205(26,273)(32,767)

80,46059,46847,07743,35733,623

21,93327,311

Investment in tangible assets¥58,40426,963¥ 104,495¥ 104,205¥ 129,023¥ 130,121¥ 111,321

Depreciation

59,830¥

62,372

38,254¥

73,23887,21983,74474,44964,423

51,277¥

49,26465,651¥

45,93969,607¥——Research and development expenses

32,07027,78826,826

33,64636,75034,54831,16630,051

29,562

29,70529,985(84.33)¥ (105.16)

Per share of common stock (yen):
Net income (loss) per share—basic¥188.02¥

151.51¥¥

257.50¥

189.88¥

146.16¥

135.09¥108.04

¥

70.19

¥

87.28

—

—

—

—

257.43189.66146.02135.03101.97

62.90

78.26

Total net assets per share

3,662.26

3,300.17

3,390.02

2,987.16

4,483.32

5,612.11

5,044.45

3,504.80

3,199.69

2,522.52

2,809.54

Cash dividends per share

50.00

50.00

30.00

40.00

60.00

50.00

38.00

32.00

24.00

22.00

19.00

Total assets¥2,656,984¥2,481,452¥2,589,246¥2,327,432¥2,965,585¥3,585,857¥3,245,341¥2,326,824¥2,011,995¥1,650,391¥1,770,401

Net income per share—diluted

At Year-End
Total net assets

1,197,841

1,075,939

1,104,929

977,670

1,453,996

1,810,483

1,611,227

1,115,747

1,016,763

738,867

878,812

Common stock

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

68,04668,021

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

311,687

311,564

311,570

311,577

311,589

312,075

319,320

318,237

317,666

292,777

312,796¥ 101,718¥ 153,661¥ 203,452

65,768¥ 188,805¥ 177,467¥ 131,784¥ 100,095

92,406¥ 103,183(9,403)(187,574)(36,855)(114,217)(138,789)(164,446)(205,013)(128,230)(92,667)(95,120)

Cash FlowsNet cash provided by operating activities
Net cash used in investing activities

¥

¥

¥

81,078(106,710)

Net cash provided by (used in) financing activities

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

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

85,17250,020(56,015)

57,775

1,225

Cash and cash equivalents at end of year

296,811

195,566

317,590

188,011

121,284

108,569

112,596

100,535

77,212

136,929

71,119

5.4

4.5

(2.6)

(2.8)

5.1

3.5

3.5

4.1

3.8

2.7

3.0

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

2.3

1.9

(1.1)

(1.2)

2.5

1.7

1.7

2.0

1.8

1.3

1.5

Operating profit margin (%)

4.5

4.6

1.6

(0.4)

4.8

4.8

4.3

4.3

4.5

4.9

4.7

Equity ratio (%)

43.0

41.4

40.8

40.0

47.1

48.8

49.7

48.0

50.5

44.8

49.6

¥ 161,876¥ 150,481

71,608¥ 222,125¥ 191,007¥ 150,674¥ 128,381¥ 113,676

43,51640,82539,91639,52836,09632,97730,99027,431

EBITDA (millions of yen)
Number of employees¥90,521
38,903¥¥

95,47225,030¥

97,54023,056

1. Net income (loss) per share is computed based on the average number of shares for each year.
2. ROE and ROA are computed based on the average total net assets and total assets, respectively, for each year.
3. Operating profit margin = Operating income (loss) / Net sales
4. Equity ratio = (Total net assets – Subscription rights to shares – Minority interests) / Total assets
5. EBITDA = Income before income taxes + Interest expenses – Interest and dividends income + Depreciation and amortization1

Toyota Industries Report 2012

Management’s Discussion and Analysis ofFinancial Condition and Results of Operations
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations are
based on information known to management as of June 2012.
This section contains projections and forward-looking statements that involve risks, uncertainties andassumptions. You should be aware that certain risks and uncertainties could cause the actual results ofToyota Industries Corporation and its consolidated subsidiaries to differ materially from any projections or
forward-looking statements. These risks and uncertainties include, but are not limited to, those listed under“Risk Information” and elsewhere in this report.
The fiscal year ended March 31, 2012 is referred to as fiscal 2012 and other fiscal years are referred toin a corresponding manner. All references to the “Company” herein are to Toyota Industries Corporation
and references to “Toyota Industries” herein are to the Company and its 176 consolidated subsidiaries.

Results of Operations
Operating Performance
In fiscal 2012, the global economy began to recover gradually,
as certain Asian countries, especially China, witnessed an
economic recovery and the U.S. economy appears to havebottomed out. Despite the aftermath effects of the Great East
Japan Earthquake and the sharp appreciation of the yen, theJapanese economy also showed signs of an upturn due tosuch factors as the stabilization of personal consumption andprivate sector capital investment.
In this operating environment, Toyota Industries undertook
efforts to strengthen its management platform by ensuring
customer trust through its dedication to quality as well as
responding quickly and flexibly to the recovery trend andexpansion of sales. In addition, Toyota Industries strove tominimize the impact on production due to the earthquake inJapan and the flooding in Thailand by carrying out flexible
shift operations.
As a result, total consolidated net sales amounted to¥1,543.3 billion, an increase of ¥63.5 billion (4%) fromfiscal 2011.

Operating Performance Highlights by Business
Segment
Operating results by business segment are as follows.
Net sales for each segment do not include inter-segment
transactions.
Automobile Segment
The automobile industry showed a mild recovery due to an
upturn in the U.S. market and the expansion of the Asianmarket, in spite of a decline in sales in the Japanese market.
Despite having been forced to suspend production partially
due to disruptions in parts supply arising from the aftermath
effects of the earthquake in Japan and the flooding in
Thailand, Toyota Industries strove to maintain and restore
production activities. As a result, net sales of the Automobile
Segment totaled ¥803.1 billion. Operating income amounted

2

Toyota Industries Report 2012to ¥21.2 billion, a decrease of ¥11.6 billion (35%) fromfiscal 2011.
Within this segment, net sales of the Vehicle Businessamounted to ¥354.4 billion, a decrease of ¥21.1 billion (6%),
due mainly to a decline in sales of the RAV4 and Vitz (Yaris
outside Japan).
Net sales of the Engine Business totaled ¥197.1 billion,
attributable primarily to an increase in sales of KD diesel
engines and despite a decline in sales of AR gasoline engines.
Net sales of the Car Air-Conditioning Compressor
Business totaled ¥206.5 billion, an increase of ¥14.7 billion(8%), resulting from solid sales worldwide.
Materials Handling Equipment Segment
In the materials handling equipment industry, markets inemerging countries, Europe, the United States and Japan saw
signs of recovery. Accordingly, Toyota Industries strengthened
production and sales structures and rolled out new products
matched to respective markets. As a result of an increase
worldwide in sales of lift trucks, a mainstay product of thissegment, net sales of the Materials Handling Equipment
Segment totaled ¥570.7 billion, an increase of ¥80.1 billion(16%). Operating income amounted to ¥38.2 billion, an
increase of ¥14.3 billion (59%) from fiscal 2011.
Logistics Segment
Net sales of the Logistics Segment amounted to ¥92.9 billion
yen, a decrease ¥14.8 billion (14%), as a result of selling all
shares of Mail & e Business Logistics Service Co., Ltd., asubsidiary engaged in commissioned logistics operations.
Operating income amounted to ¥4.6 billion, a decrease of¥0.7 billion (14%) from fiscal 2011.
Textile Machinery Segment
Net sales of the Textile Machinery Segment totaled ¥38.5
billion, a decrease of ¥4.2 billion (10%). This was due mainly
to a decrease in sales of air-jet looms in China. Operating
income amounted to ¥2.0 billion, a decrease of ¥0.5 billion(21%) from fiscal 2011. In February 2012, Toyota Industries

purchased the shares of Uster Technologies AG and madeit into a subsidiary for the purpose of strengthening thebusiness segment.

Ordinary income amounted to ¥80.8 billion, an increase of¥6.9 billion (9%) from fiscal 2011. This was due mainly to
dividends income of ¥17.9 billion, an increase of ¥2.9 billion(20%) from fiscal 2011.

strong balance sheets. Currently, funds for capital investments
and other long-term capital needs are provided from retained
earnings and long-term debt, and working capital needs are
met through short-term loans. Long-term debt financing iscarried out mainly through issuance of corporate bonds andloans from financial institutions.
Toyota Industries continues to maintain its solid financial
condition. Through the use of such current assets as cash
and cash equivalents and securities, as well as free cash
flows and funds procured from financial institutions,Toyota Industries believes that it will be able to provide
sufficient funds for the working capital necessary to expand
existing businesses and develop new projects, as well as for
future investments.
Regarding fund management, the Company undertakes
integrated fund management of its subsidiaries in Japan,
while Toyota Industries North America, Inc. (TINA) andToyota Industries Finance International AB (TIFI) centrally
manage the funds of subsidiaries in North America andEurope, respectively.
Through close cooperation among the Company, TINA
and TIFI, we strive for efficient, unified fund management ona global consolidated basis.

Income before Income Taxes and Minority
Interests

Cash Flows

Others Segment
Net sales of the Others Segment totaled ¥37.9 billion, an
increase of ¥3.5 billion (10%) from fiscal 2011. Operating
income was ¥3.6 billion, an increase of ¥0.2 billion (6%)
from fiscal 2011.

Operating Income
Operating income for fiscal 2012 was ¥70.0 billion, an
increase of ¥1.3 billion (2%) from fiscal 2011. This was due
to cost reduction efforts throughout the Group and anincrease in net sales of the Materials Handling Equipment
Segment despite higher personnel expenses and exchange
rate fluctuations.

Ordinary Income

Income before income taxes and minority interests amounted
to ¥85.4 billion, an increase of ¥16.2 billion (23%) fromfiscal 2011. This was due to extraordinary income of ¥4.5
billion, arising from a gain on step acquisitions of Uster
Technologies AG.

Net Income
Net income totaled ¥58.5 billion, an increase of ¥11.3
billion (24%) from fiscal 2011. Net income per share was¥188.02 compared with ¥151.51 in fiscal 2011.

Consolidated Financial Condition
Total assets increased ¥175.5 billion from the end of theprevious fiscal year to ¥2,656.9 billion due mainly to anincrease in market value of investment securities. Total
liabilities increased ¥53.6 billion from the end of the previous
fiscal year to ¥1,459.1 billion due mainly to an increase inborrowing. Net assets amounted to ¥1,197.8 billion, an
increase of ¥121.9 billion from the end of the previous
fiscal year.

Liquidity and Capital Resources
Toyota Industries’ financial policy is to ensure sufficientfinancing and liquidity for its business activities and to maintain

Cash flows from operating activities resulted in an increase in
cash of ¥101.7 billion in fiscal 2012 due mainly to income
before income taxes and minority interests of ¥85.4 billion.
Net cash provided by operating activities decreased by ¥51.9
billion from ¥153.6 billion in fiscal 2011.
Cash flows from investing activities resulted in a decreasein cash of ¥9.4 billion in fiscal 2012, attributable primarily to adecrease in payments for purchases of property, plant andequipment amounting to ¥76.6 billion despite a net increase intime deposits amounting to ¥70.1 billion. Net cash used ininvesting activities decreased by ¥178.1 billion compared witha decrease of ¥187.5 billion in fiscal 2011.
Cash flows from financing activities resulted in an increasein cash of ¥10.2 billion in fiscal 2012, due mainly to proceedsfrom long-term loans payable of ¥50.4 billion.
After adding translation adjustments and cash and cash
equivalents at beginning of period, cash and cash equivalents
as of March 31, 2012 stood at ¥296.8 billion, an increase of¥101.3 billion (52%) over fiscal 2011.

Investment in Property, Plant and Equipment
During fiscal 2012, Toyota Industries made a total investmentof ¥91.9 billion in property, plant and equipment (including
vehicles and materials handling equipment for lease) inorder to launch new products, streamline and upgrade

3

Toyota Industries Report 2012

production equipment.
In the Automobile Segment, investment in property, plantand equipment totaled ¥36.7 billion. A primary breakdown of
this amount included ¥17.0 billion for the Company, ¥6.2
billion for Michigan Automotive Compressor, Inc., ¥2.9 billion
for P.T. TD Automotive Compressor Indonesia, ¥2.3 billion for
TD Automotive Compressor Georgia, LLC, ¥1.6 billion for
Tokaiseiki Co., Ltd., ¥1.5 billion for Toyota Industry (Kunshan)Co., Ltd., ¥1.2 billion for TD Deutsche Klimakompressor
GmbH and ¥1.0 billion for Kirloskar Toyoda Textile Machinery
Pvt. Ltd.
The Materials Handling Equipment Segment made aninvestment in property, plant and equipment in the total
amount of ¥45.6 billion. The primary breakdown comprised¥2.2 billion for the Company, ¥24.4 billion for Toyota Material
Handling Europe Group, ¥8.6 billion for Toyota Material
Handling Australia Group, ¥1.5 billion for Toyota Material
Handling, U.S.A., Inc., ¥1.3 billion for TOYOTA L&F Shizuoka
Co., Ltd., ¥1.1 billion for Toyota Industrial Equipment Vietnam
Co., Ltd. and ¥1.0 billion for Nishina Industrial Co., Ltd.
Investment in property, plant and equipment in the
Logistics Segment totaled ¥5.7 billion, including ¥4.4 billion for
Asahi Security Co., Ltd.
The Textile Machinery Segment made an investment inproperty, plant and equipment in the total amount of ¥0.4
billion, including ¥0.1 billion for the Company.
The Others Segment made an investment in property,
plant and equipment in the total amount of ¥3.4 billion,
including ¥1.0 billion for the Company and ¥1.4 bilion for
Toyota Industries North America, Inc.
Necessary funds were provided by a portion of bonds aswell as cash on hand and bank loans.

Strategies and Outlook
Outlook for Results for Fiscal 2013
Although the global economy is projected to gradually recoverin fiscal 2013 due to the economic recovery in Asian countries,
especially China, uncertainties remain with regards to the debt
crisis in Europe, further deterioration in the employment
situation and fluctuations in raw material prices such as crudeoil, as well as concerns about exchange rate fluctuations. The
operating environment is expected to remain severe.
Amid this challenging environment, Toyota Industries willcontinue to undertake concerted efforts to strengthen its
management platform and raise corporate value. As
immediate tasks, we will also promote business and cost
structure reforms to realize a solid management platform sothat we can respond quickly to the changing market
circumstances.
Specifically, we will maintain a streamlined structure
through the reduction of fixed costs and enhance ourbusiness in established markets in developed countries. In

4Toyota Industries Report 2012

addition, we will accelerate our business expansion into
rapidly growing emerging countries by thoroughly andmeticulously monitoring market conditions in respective
regions and introducing products suited to the characteristics
and needs of each market. Toyota Industries will also strive toestablish production/supply structures to realize optimum
product pricing and delivery and to enhance the value chain toprovide a wide range of customer services in each country
and region.
Based on quality first, Toyota Industries regards giving
considerations to the environment and safety as well as
increasing our competitive strengths to be important issues totackle over the medium to long term. We will promote productdevelopment and advanced technology development to offer
high value-added products that anticipate customer needs.
In October 2011, Toyota Industries formulated andannounced the Vision 2020, which articulates action items forthe next 10 years, and Medium-Term Management Plan. In
the Vision 2020, we aim to support industries and social
foundations around the world by continuously supplying
products and services that anticipate customers’ needs inorder to contribute to a comfortable society and enriched
lifestyles.
To this end, we will pursue the development ofenvironmentally conscious, energy-saving products based on
the keywords of the 3Es, which Toyota Industries defines as“energy,” “environmental protection” and “ecological thinking”
while incorporating functions and services demanded bycustomers (value chain) and delivering them to the global
market. Acting on these measures, we aim for growth in threebusiness units, namely, “solution” in the areas of materials
handing equipment, logistics and textile machinery; “keycomponents” in the fields of car air-conditioning compressors
and car electronics; and “mobility” in the domains of vehicles
and engines.
With regards to the Medium-Term Management Plan, we
have formulated a specific four-year activity plan for eachbusiness unit until fiscal 2016. The entire Toyota Industries
Group will make a concerted effort to realize the Vision 2020.
To support such consolidated management on a global
scale, Toyota Industries will strive to nurture people who takethe initiative to learn, think and act and who will enhance thepower of the workplace.
In addition to placing top priority on safety, we willthoroughly enforce compliance, including observance of laws
and regulations, and actively participate in social contribution
activities. Through these and further measures, Toyota
Industries aims to meet the trust of society, raise corporate
value and grow in harmony with society.

Dividend Policy
Toyota Industries regards the benefits of shareholders as oneof its most important management policies. Based on thisstance, Toyota Industries will strive to strengthen its corporate
constitution, promote proactive business development andraise its corporate value.
Toyota Industries’ dividend policy is to meet the
expectations of shareholders for continuous dividends while
giving full consideration to business performance, funding
requirements, the dividend payout ratio and other factors.
Toyota Industries’ Ordinary General Meeting of Shareholders,
held on June 14, 2012, approved a year-end cash dividend of¥25.0 per share. Including the interim cash dividend of ¥25.0
per share, cash dividends for the year totaled ¥50.0 per share.
Toyota Industries will use retained earnings to improve thecompetitiveness of its products, augment production capacity
in Japan and overseas, as well as to expand into new fields ofbusiness and strengthen its corporate constitution in securing
future profits for its shareholders.
The Company’s Articles of Incorporation stipulate that it
may pay interim cash dividends as prescribed in Article 454-5of the Corporation Law, and it is the Company’s basic policy
to pay dividends from retained earnings twice a year (interim
and annual).
The Company’s Articles of Incorporation also stipulate thatwhat is prescribed in Article 459-1 of the Corporation Law canbe added to the Articles of Incorporation. As the Company’s
policy, discretion to pay interim cash dividends is determinedby the Board of Directors while payment of year-end cash
dividends is subject to approval at the Ordinary General
Meeting of Shareholders.

Risk Information
The following represents risks that could have a material
impact on Toyota Industries’ financial condition, businessresults and share prices. Toyota Industries judged thefollowing as future risks as of March 31, 2012.

Principal Customers
Toyota Industries’ automobile and engine products are soldprimarily to Toyota Motor Corporation (TMC). In fiscal 2012,
net sales to TMC accounted for 38.3% of consolidated net
sales. Therefore, TMC’s vehicle sales could have an impact on
Toyota Industries’ business results. As of March 31, 2012,
TMC holds 24.60% of the Company’s voting rights.

Product Development Capabilities
Based on the concept of “developing appealing new
products,” Toyota Industries proactively develops new
products by utilizing its leading-edge technologies, as it strives
to anticipate increasingly sophisticated and diversifying needsof the market and ensure the satisfaction of its customers.
R&D activities are focused mainly on developing andupgrading products in current business fields and peripheral
sectors. Toyota Industries expects that revenues derived fromthese fields will continue to account for a significant portion of
total revenues and anticipates that future growth will be
contingent on the development and sales of new products inthese fields. Toyota Industries believes that it can continue todevelop appealing new products. However, Toyota Industries
may not be able to forecast market needs and develop andintroduce appealing new products in a timely manner. This
could result in lower future growth and have an adverse
impact on Toyota Industries’ financial condition andbusiness results.
Such a situation could result from risks that include noassurance Toyota Industries can allocate sufficient future
funds necessary for the development of appealing new
products; no assurance that product sales will be successful,as forecasts of products supported by the market may notalways be accurate; and no assurance that newly developed
products and technologies will always be protected as
intellectual property.

Intellectual Property Rights
In undertaking its business activities, Toyota Industries has
acquired numerous intellectual property rights, including thoseacquired overseas, such as patents related to its products,
product designs and manufacturing methods. However, not allpatents submitted will necessarily be registered as rights, andthese patents could thus be rejected by patent authorities orinvalidated by third parties. Also, a third party could
circumvent a patent of Toyota Industries and introduce acompeting product into the market. Moreover, Toyota
Industries’ products utilize a wide range of technologies.
Therefore, Toyota Industries could become a party subject
to litigation involving the intellectual property rights ofa third party.

Product Defects
Guided by the basic philosophy of “offering products andservices that are clean, safe and of high quality,” Toyota
Industries makes its utmost efforts to enhance quality.
However, Toyota Industries cannot guarantee all its products
will be defect-free and that product recalls will not be made in
the future. Product defects that could lead to large-scale
recalls and product liability indemnities could result in large
cost burdens and have a significant negative impact on theevaluation of Toyota Industries. It could also have an adverse
effect on Toyota Industries’ financial condition and businessresults due to a decrease in sales, deterioration of profitability
and decrease in share prices of Toyota Industries.

5

Toyota Industries Report 2012

Price Competition
Toyota Industries faces extremely harsh competition in each of
the industries in which it conducts business, including its
Automobile and Materials Handling Equipment businesses,
which are the core of Toyota Industries’ earnings foundation.
Toyota Industries believes it offers high value-added productsthat are unrivalled in terms of technology, quality and cost.
Amid an environment characterized by intensifying pricecompetition, however, Toyota Industries may be unable tomaintain or increase market share against low-costcompetitors or to maintain profitability. This could have an
adverse impact on Toyota Industries’ financial condition andbusiness results.

Reliance on Suppliers of Raw Materials andComponents
Toyota Industries’ products rely on various raw materials andcomponents from suppliers outside Toyota Industries. Toyota
Industries has concluded basic business contracts with theseexternal suppliers and assumes it can carry out stabletransactions for raw materials and components. However,Toyota Industries has no assurances against future shortagesof raw materials and components, which arise from a global
shortage due to tight supply or an unforeseen accident
involving a supplier. Such shortages could have a negative
effect on Toyota Industries’ production and cause an increasein costs, which could have an adverse impact on Toyota
Industries’ financial condition and business results.

Environmental Regulations
In view of its social responsibilities as a company, Toyota
Industries strives to reduce any burden on the environment
resulting from its production processes, as well as strictly
adheres to applicable environmental laws and regulations.
However, various environmental regulations could also be
revised and strengthened in the future. Accordingly, any
expenses necessary for continuous strict adherence to theseenvironmental regulations could result in increased businesscosts and have an adverse impact on Toyota Industries’
financial condition and business results.

Alliances with Other Companies
Aiming to expand its businesses, Toyota Industries engages injoint activities with other companies through alliances and joint
ventures. However, a wildly fluctuating market trend or adisagreement between Toyota Industries and its partners,
owing to business, financial or other reasons, could prevent
Toyota Industries from deriving the intended benefits of its
alliances.

Exchange Rate Fluctuations
Toyota Industries’ businesses encompass the production andsales of products and the provision of services worldwide.
Generally, the strengthening of the yen against other6

Toyota Industries Report 2012

currencies (especially against the U.S. dollar and the euro,
which account for a significant portion of Toyota Industries’
sales) has an adverse impact on Toyota Industries’ business,while a weakening of the yen has a favorable impact. An
increase in the value of currencies in countries or regions
where Toyota Industries carries out production could lead toan increase in local production, procurement and distribution
costs. Such an increase in costs could reduce Toyota
Industries’ price competitiveness. Additionally, because export
sales of several businesses are denominated mainly in yen,exchange rate fluctuations could have an adverse impact on
Toyota Industries’ financial condition and business results due
to a change in market prices.

Share Price Fluctuations
Toyota Industries holds marketable securities, and therefore
bears the risk of price fluctuations of these shares. Based onfair market value of these shares at the end of the fiscal year
under review, Toyota Industries had unrealized gains.
However, unrealized gains on marketable securities could
worsen depending on future share price movements.
Additionally, a fall in share prices could reduce the value ofpension assets, leading to an increase in the pension shortfall.

Effects of Disasters, Power Blackouts and Other
Incidents
Toyota Industries carries out regular checks and inspections of
its production facilities to minimize the effect of production
breakdown. However, there is no assurance Toyota Industries
can completely prevent or lessen the impact of man-made or
natural disasters and power blackouts occurring at Toyota
Industries’ and its suppliers’ production facilities. Specifically,
the majority of Toyota Industries’ domestic production facilities
and most of its business partners are situated in the Chubu
region. Therefore, major disasters in this region could delay orstop production or shipment activities. Such prolonged delays
and stoppages could have an adverse impact on Toyota
Industries’ financial condition and business results.

Latent Risks Associated with International
Activities
Toyota Industries manufactures and sells products andprovides services in various countries. Such unforeseen
factors as social chaos, including political disruptions,terrorism and wars, as well as changes in economic
conditions, could have an adverse impact on Toyota
Industries’ financial condition and business results.

Retirement Benefit Liabilities
Toyota Industries’ employee retirement benefit expenses andliabilities are calculated based on expected rates of return on
pension assets as well as assumptions upon making actuarial
calculations that incorporate discount rates and other factors.
Therefore, differences between actual results andassumptions as well as changes in the assumptions could
have a significant impact on recognized expenses andcalculated liabilities in future accounting periods.

Significant Accounting Policies andEstimates
Toyota Industries’ financial statements are prepared inconformity with accounting principles and practices generally
accepted in Japan. In preparing financial statements,
management must make estimates, judgments andassumptions that affect reported amounts of assets andliabilities at fiscal year-end as well as revenues and expenses
during each fiscal year. Among Toyota Industries’ significant
accounting policies, the following categories require a
considerable degree of judgment and estimation and arehighly complex.

Allowance for Doubtful Accounts
To prepare for the risk of receivables becoming uncollectible,
Toyota Industries estimates its allowance for doubtful
accounts by utilizing the percentage of historical experiencesin credit losses for ordinary receivables and individually
examining the feasibility of collection for receivables that seemto be uncollectible. Evaluating the allowance for doubtful
accounts involves judgments made in accordance with thenature of the situation, and this allowance represents anessential and crucial estimate—including future estimates ofcash flow amounts and timing—that could change
significantly. Based on currently available information, Toyota
Industries’ management believes its present allowance for
doubtful accounts is sufficient. However, the need tosignificantly increase allowance for doubtful accounts in the
future could have an adverse impact on Toyota Industries’
business results.

Allowance for Retirement Benefits
Calculations differ for retirement benefits, retirement benefit
expenses and liabilities after employee retirement, as well as
benefits for employees on leave of absence, because different
assumptions are used at the time of calculation. Assumptions
include such factors as discount rates, amount of benefits,interest expenses, expected rates of return on pension assets
and mortality rates. The difference in amounts between theseassumptions and actual results is calculated cumulatively andamortized over future accounting periods, and thus becomes
an expense and is recognized as a liability in future accounting
periods. Toyota Industries believes its assumptions arereasonable. However, differences between actual results orchanges in the assumptions could have an impact onretirement benefits and retirement benefit expenses andliabilities after employee retirement.

Toyota Industries’ Relationship to Toyota
Motor Corporation
Due to historical reasons, Toyota Industries maintains close
relationships with Toyota Motor Corporation (TMC) and Toyota
Group companies in terms of capital and business dealings.

Historical BackgroundIn 1933, Kiichiro Toyoda, the eldest son of founder Sakichi
Toyoda and then Managing Director of Toyota Industries (thenToyoda Automatic Loom Works, Ltd.), established theAutomobile Department within the Company based on his
resolve to manufacture Japanese-made automobiles. In 1937,
the Automobile Department was spun off and became an
independent company, Toyota Motor Co., Ltd. (the present
Toyota Motor Corporation).

Capital RelationshipIn light of this historical background, Toyota Industries and
TMC have maintained a close capital relationship. As of March
31, 2012, Toyota Industries holds 6.90% (218,515 thousand
shares) of TMC’s total shares issued. Likewise, as of the samedate, TMC holds 24.60% of Toyota Industries’ total voting
rights. Toyota Industries is a TMC affiliate accounted for by theequity method.

Business RelationshipToyota Industries assembles certain cars and produces
automobile engines under consignment from TMC.
Additionally, Toyota Industries sells a portion of its othercomponents and products directly or indirectly to other Toyota
Group companies. In fiscal 2012, net sales to TMC accounted
for 38.3% of consolidated net sales.

Contributions to the Toyota GroupAs a member of the Toyota Group, Toyota Industries aims tocontribute to strengthening the competitiveness of TMC andother Toyota Group companies in such areas as quality, cost,delivery and technologies. Toyota Industries is confident thatraising the Toyota Group’s competitiveness will lead toincreases in sales to and profits from the Toyota Group,
thereby contributing to raising Toyota Industries’ corporate
value.

7

Toyota Industries Report 2012

Consolidated Balance Sheets
Toyota Industries Corporation
As of March 31, 2012 and 2011
Millions of yen

ASSETS

Millions of yen

2012

2011

¥ 274,710¥ 198,654

Trade notes and accounts receivable (Note 8)

195,391

152,121

Lease investment assets (Note 25)

36,57035,146

Short-term investments

92,249132,430

Current assets:
Cash and deposits

Merchandise and finished goods (Note 4)

48,18342,940Work in process (Note 4)

33,72731,256

Raw materials and supplies (Note 4)

34,53630,065

Deferred tax assets (Note 24)

20,36818,493

Other current assets

36,35832,646

Allowance for doubtful accounts(2,740)(2,863)

Total current assets

769,356

670,893

Buildings and structures (Notes 5 and 8)

141,412

159,606

Machinery, equipment and vehicles (Notes 5 and 8)

180,146

185,988

Fixed assets:
Property, plant and equipment:

Tools, furniture and fixtures (Note 5)

24,44823,634

Land

116,526

119,697

Construction in progress

18,5198,350

Total property, plant and equipment

481,053497,278

Goodwill

68,824

68,573

Other intangible assets

37,952

10,767

Total intangible assets

106,777

79,3401,177,591

1,123,306

Intangible assets:

LIABILITIES AND NET ASSETS

2012

2011

¥ 168,465
110,212
12,897
54,10537,61918,16912,5103525
165,018¥ 144,956
99,946
11,13330,82937,873
14,34918,320737
521
153,275

579,527

511,944

187,238
249,183
85,754297,304
48,973
11,160205,649
236,60282,813309,256
46,924
12,321

879,615
1,459,142

893,568
1,405,512

80,46280,462

106,128455,042(50,266)

106,179
412,029(50,703)

Total shareholders’ equity

591,367

547,968

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

565,007(131)(14,763)488,277
46(8,075)550,1122,310
54,051
1,197,841¥2,656,984

480,248
2,132
45,589
1,075,939¥2,481,452

Current liabilities:
Trade notes and accounts payable
Short-term loans payable (Note 8)
Commercial paper
Current portion of bonds (Note 6)
Lease obligations (Note 25)
Accounts payable—otherAccrued income taxes
Deferred tax liabilities (Note 24)
Allowance for bonuses to directors and corporate auditors
Other current obligations (Note 8)
Total current liabilities
Long-term liabilities:
Bonds payable (Note 6)Long-term loans payable (Notes 6 and 8)
Lease obligations (Notes 2 and 6)
Deferred tax liabilities (Note 24)
Allowance for retirement benefits (Note 9)
Other long-term liabilities (Note 10)
Total long-term liabilities
Total liabilities
Shareholders’ equity (Note 14):
Capital stock
Authorized — 1,100,000,000 shares
Issued— 325,840,640 shares as of March 31, 2012			 325,840,640 shares as of March 31, 2011
Capital surplus
Retained earnings
Treasury stock
14,153,619 shares as of March 31, 2012
14,275,721 shares as of March 31, 2011

Investments and other assets:
Investments in securities (Notes 7 and 8)
Deferred tax assets (Note 24)

10,7589,786

Lease investment assets (Note 25)

76,566

71,480

Other investments and other assets (Note 7)

35,03429,539

(152)

(173)

1,299,798

1,233,940

1,887,628

1,810,559¥2,656,984¥2,481,452

Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets

Total accumulated other comprehensive income
Subscription rights to shares
Minority interests
Total net assets
Total liabilities and net assets

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

8

Toyota Industries Report 20129Toyota Industries Report 2012

Consolidated Statements of Income

Consolidated Statements of Comprehensive Income

Toyota Industries Corporation
For the years ended March 31, 2012 and 2011

Toyota Industries Corporation
For the years ended March 31, 2012 and 2011
Millions of yen

Millions of yen

2012

2011

Net sales¥1,543,352¥1,479,839

Income before minority interests

Cost of sales (Note 15)

1,301,617

1,250,313

Other comprehensive income:

241,734

229,526

Gross profit
Selling, general and administrative expenses (Notes 15 and 22):

Valuation difference on available-for-sale securities (Note 18)
Deferred gains or losses on hedges (Note 18)

Sales commissions

10,003

8,913

Foreign currency translation adjustment (Note 18)

Salaries and allowances

68,176

62,969

Share of other comprehensive income of associates accounted for using equity method (Note 18)

Retirement benefit expenses

1,977

2,020

Comprehensive income

Depreciation

5,951

6,332

Profit attributable to:

Research and development expenses

25,34821,727

Owners of the parent

Others60,18458,765

Minority interests

70,092

68,798Operating income

2012

2011

¥60,771¥49,058

76,752(55,834)

(177)

55

(6,820)(6,375)

(216)

(300)

130,308(13,396)

128,457(14,174)

1,850

777

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

Non-operating income:Interest income

9,070

9,172

Dividends income

17,933

14,975Gain on sales of marketable securities

1,159

488

Other non-operating income

6,545

7,407

Interest expenses(16,046)(15,773)

Loss on disposal of fixed assets(1,035)(1,281)Non-operating expenses:

Equity in net losses of affiliated companies
Other non-operating expenses
Ordinary income

(490)

(473)

(6,363)(9,402)80,86673,911

4,599—

Extraordinary income (Note 16):
Gain on step acquisitions
Extraordinary losses (Note 17):—

(4,631)

85,46569,279

Income taxes ­— current (Note 24)

23,38225,456

Income taxes — deferred (Note 24)

1,311(5,234)60,77149,058

2,177

1,852

Losses on the Great East Japan Earthquake
Income before income taxes and minority interests

Income before minority interests
Income on minority interests in consolidated subsidiaries
Net income¥58,594¥

47,205Yen

Net income per share­— basic (Note 31)
Net income per share­— diluted (Note 31)
Net assets per share (Note 32)
Cash dividends per share¥  188.02¥  151.51——

3,662.26

3,300.17

50.00

50.00

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

10

Toyota Industries Report 201211

Toyota Industries Report 2012

Consolidated Statements of Changes in Net Assets
Toyota Industries Corporation
For the years ended March 31, 2012 and 2011
Millions of yen

2012

Shareholders’ equity
Capital stock
Balance at the beginning of current period
Balance at the end of current period
Capital surplus
Balance at the beginning of current period
Changes of items during the period
		 Disposal of treasury stock		 Total changes of items during the period
Balance at the end of current period
Retained earnings
Balance at the beginning of current period
Changes of items during the period
		 Dividends from surplus
		 Increase (decrease) due to decrease in consolidated subsidiaries
		 Net income
		 Total changes of items during the period
Balance at the end of current period
Treasury stock
Balance at the beginning of current period
Changes of items during the period
		 Repurchase of treasury stock		 Disposal of treasury stock		 Total changes of items during the period
Balance at the end of current period
Total shareholders’ equity
Balance at the beginning of current period
Changes of items during the period
		 Dividends from surplus
		 Increase (decrease) due to decrease in consolidated subsidiaries
		 Net income
		 Repurchase of treasury stock		 Disposal of treasury stock		 Total changes of items during the period
Balance at the end of current period
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Balance at the beginning of current period
Changes of items during the period
		 Net changes of items other than shareholders’ equity
		 Total changes of items during the period
Balance at the end of current period¥80,46280,462Millions of yen

2012

2011

¥

80,46280,462

106,179

106,179(50)(50)
106,128(0)(0)
106,179

412,029

378,648(15,581)—
58,59443,013455,042(14,020)
196
47,20533,381
412,029(50,703)(50,689)

(5)
441
436
(50,266)

(15)
1
(13)
(50,703)547,968

514,601(15,581)—
58,594(5)391
43,399591,367(14,020)
196
47,205(15)
033,367547,968

488,277

544,068

76,72976,729565,007(55,790)(55,790)488,277

Deferred gains or losses on hedges
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Foreign currency translation adjustment
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Total accumulated other comprehensive income
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Subscription rights to shares
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Minority interests
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Total net assets
Balance at the beginning of current period
Changes of items during the period
Dividends from surplus
Increase (decrease) due to decrease in consolidated subsidiaries
Net income
Repurchase of treasury stock
Disposal of treasury stock
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period

¥

2011

46

¥

(9)

(177)
(177)
(131)

55
55
46

(8,075)(2,430)(6,688)(6,688)(14,763)(5,645)(5,645)(8,075)480,248541,628

69,86369,863550,112(61,380)(61,380)
480,248

2,132

1,720

178
178
2,310

411
411
2,132

45,58946,9788,461
8,461
54,051(1,389)(1,389)45,589

1,075,939

1,104,929(15,581)—
58,594(5)391
78,503
121,902¥1,197,841(14,020)
196
47,205(15)
0(62,357)(28,990)¥1,075,939

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

12

Toyota Industries Report 201213

Toyota Industries Report 2012

Consolidated Statements of Cash Flows

Notes to Consolidated Financial Statements
1. Basis of presenting consolidated financial statements:

Toyota Industries Corporation
For the years ended March 31, 2012 and 2011
Millions of yen

Cash flows from operating activities:
Income before income taxes and minority interests
Depreciation and amortization
Decrease in allowance for doubtful accounts
Interest and dividends income
Interest expenses
Equity in net losses of affiliated companies(Increase) decrease in receivables
Increase in inventories
Increase in payables
Others, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
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 sales of subsidiaries’ stock resulting in change in scope of consolidation
Payments for loans madeProceeds from collections of loans
Net decrease (increase) in time deposits
Others, net
Net cash used in investing activities
Cash flows from financing activities:
Decrease in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuances 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 year
Cash and cash equivalents at end of year
The accompanying notes are an integral part of these financial statements.

14

Toyota Industries Report 2012

2012

2011

¥ 85,465
87,368(159)(27,004)
16,046490(47,043)(13,897)
25,307(5,357)
121,216
26,992(15,940)(30,549)
101,718¥ 69,279
89,576(195)(24,148)
15,773473
11,650(16,953)
3,440
19,228168,125
24,173(15,882)(22,755)
153,661(76,638)
8,408(1,924)
1,720(5,568)
1,228
(27)
374
70,161(7,137)(9,403)(48,085)
7,645(56,000)
2,963
(25)
41
(30)
730
(89,351)(5,461)(187,574)(21,706)
50,482—35,604(30,761)(5)(15,581)
(478)
1,220
(8,495)
10,279(1,348)101,244
195,566¥ 296,811(6,759)
240
(826)
4,002
(49,180)(15)(14,020)(528)
143(18,784)(85,728)(2,382)(122,024)
317,590¥ 195,566

The accompanying consolidated financial statements have been
prepared based on the accounts maintained by Toyota Industries
Corporation (the “Company”) and its consolidated subsidiaries(together, hereinafter referred to as “Toyota Industries”) in accordancewith the provisions set forth in the Corporation Law of Japan and the

Financial Instruments and Exchange Law, and in conformity withaccounting principles generally accepted in Japan, which are different
in certain respects from the application and disclosure requirements ofInternational Financial Reporting Standards.

2. Summary of significant accounting policies:(1) Consolidation
The consolidated financial statements include the accounts of theCompany and its 176 subsidiaries (39 subsidiaries in Japan and 137
subsidiaries outside Japan) as of March 31, 2012.
For the year ended March 31, 2012, 20 subsidiaries were newly
added to the scope of consolidation and six companies were
excluded from the scope of consolidation because of the sale of theCompany’s shareholdings and liquidation and mergers as a result of
reorganization. Changes in the number of consolidated subsidiaries
for the year ended March 31, 2012 are listed below.
(increase)
ELETT Corporation
TOYOTA L&F Akita Co., Ltd.
Toyota Industrial Equipment Vietnam Co., Ltd.
Toyota Industries Compressor Parts America, Co.
13 group companies of Uster Technologies AG Group
Three group companies of Toyota Material Handling Europe Group(decrease)
Mail and e Business Logistics Service Co., Ltd.
Hangzhou Aichi Engineering Vehicles Co., Ltd.
TOYOTA L&F Keiji Co., Ltd.
Toyota Industries Automotive Parts (Kunshan) Co., Ltd.
Two group companies of Toyota Material Handling Europe GroupThe fiscal years of certain subsidiaries are different from the fiscal
year of the Company. Since the difference is not more than threemonths, the Company is using those subsidiaries’ statements for
those fiscal years, making adjustments for significant transactions thatmaterially affect the financial position or results of operations.
During the consolidated fiscal year, North Vernon Industry
Corporation and Cullman Casting Corporation have decided tochange their fiscal year-end from December 31 to March 31. As aresult, the Company’s consolidated financial statements include 15
months of their operating results.
All significant inter-company transactions, balances and unrealized
profits within Toyota Industries have been eliminated.

(2) Equity method
Investments in 15 major affiliates in 2012 are accounted for by theequity method of accounting.
For the year ended March 31, 2012, three companies were newly
added to the scope of equity-method accounting. Changes in thenumber of affiliates to which the equity method applied for the year
ended March 31, 2012 are listed as follows.

(increase)
Hangzhou Aichi Engineering Vehicles Co., Ltd.
TOYOTA L&F Kinki Co., Ltd.
Liftow Limited
Some of the affiliates are not accounted for under the equity
method since their net income/losses, retained earnings and otherfinancial amounts are immaterial.

(3) Translation of foreign currencies
Foreign currency denominated receivables and payables aretranslated into Japanese yen at the year-end exchange rates and theresulting transaction gains or losses are included in the consolidated
statements of income.
All asset and liability accounts of foreign subsidiaries and affiliates
are translated into Japanese yen at year-end exchange rates and allrevenue and expense accounts are translated at prevailing fiscal
average rates.

(4) Cash and cash equivalents
Cash and cash equivalents are cash on hand, readily available
deposits and short-term highly liquid and low risk investments withmaturities not exceeding three months at the time of purchase.

(5) Short-term investments and investment securities
Toyota Industries classifies securities into four categories by purposeof holding: trading securities, held-to-maturity securities, othersecurities and investments in affiliates. Toyota Industries did not havetrading securities or held-to-maturity securities as of March 31, 2012.
Other securities with readily determinable fair values are stated atfair value based on market prices at the end of the year. Unrealized
gains and losses are included in “Valuation difference on available-forsale securities” as a separate component of net assets. Cost of salesof such securities is determined by the moving-average method.
Other securities without readily determinable fair values are stated atcost, as determined by the moving-average method.
Investments in affiliates are accounted for by the equity method(see Note 2 (2)).
Investments in affiliates not accounted for by the equity method
are stated at cost due to their insignificant effect on the consolidated
financial statements.

(6) Inventories
Inventories are stated mainly at cost determined by the movingaverage method (the values on the consolidated balance sheets arecalculated through the write-down method based on the deteriorationof profitability).

15

Toyota Industries Report 2012

(7) Property, plant and equipment, and depreciation(Except for lease assets)(15) Hedge accounting

As for bond issuance cost, the full amount is treated as expenses at
the time of payout.

(a) Method of hedge accounting
Mainly the deferral method of hedge accounting is applied. In thecase of foreign currency forward contracts and foreign currency
option contracts, the hedged items are translated at contracted
forward rates if certain conditions are met.
As for the interest rate swap contracts, which meet therequirements of the preferential accounting method, the preferential
accounting method is applied.
(b) Hedging instruments and hedged items
Hedging instruments: 	Derivative instruments (foreign currency
forward contracts, foreign currency option
contracts, foreign currency swaps and interest
rate swaps)
Hedged items:	Risk of change in interest rate on borrowings,
receivables and payables and risk of change inforward exchange rates on transactions
denominated in foreign currencies (borrowings,
receivables and payables, and forecasted
transactions)(c) Hedging policyHedging transactions are executed and controlled based on Toyota
Industries’ internal policy and Toyota Industries is hedging interest raterisks and foreign currency risks. Toyota Industries’ hedging activities
are reported periodically to a director responsible for accounting.
(d) Method used to measure hedge effectivenessHedge effectiveness is measured by comparing accumulated changes
in market prices of hedged items and hedging instruments oraccumulated changes in estimated cash flows from the inception of
the hedge to the date of measurements performed. Currently it isconsidered that there are high correlations between them.

(11) Allowances for doubtful accounts(16) Goodwill and amortization

Toyota Industries adopted the policy of providing an allowance for
doubtful accounts in an amount sufficient to cover possible losses oncollection by estimating individually uncollectible amounts andapplying to the remaining accounts a percentage determined bycertain factors such as historical collection experiences.

Goodwill, if material, is amortized principally over less than 20 years
on a straight-line basis, while immaterial goodwill is charged to gain orloss as incurred.

Property, plant and equipment are stated at cost. Depreciation
expenses of property, plant and equipment are computed mainly by
the declining-balance method for the Company and subsidiaries.
Significant renewals and additions are capitalized at cost. Repairs
and maintenance are charged to income as incurred.

(8) Intangible assets and amortization
Amortization of intangible assets is computed using the straight-line
method.

(9) Lease transactions
The depreciation method of leased properties on finance leases thatare deemed to transfer the ownership of the leased properties tolessees is the same as those applied to properties owned by
Toyota Industries.
The depreciation method of leased properties on finance leases
other than those deemed to transfer the ownership of leased
properties to lessees is computed mainly by the straight-line method,which assumes zero residual value and the leasing term to be for theuseful life of the asset.
As for the finance leases other than finance leases deemed totransfer the ownership of leased properties to lessees, those thatcame into effect before March 31, 2008 (inclusive) will continue to beaccounted for by the former method (similar to the method applicableto ordinary operating leases).

(10) Method of accounting for deferred assets

3. Change in accounting policy and adoption of new accounting standard:
Classification Change in Consolidated Financial
Statements

Accounting Standard for Accounting Changes and Error
Corrections(Consolidated Balance Sheets)“Software” (listed as a separate item in the previous fiscal year),amounting to ¥10,767 million, is included in “Other” under “Intangible
assets” in the fiscal year beginning April 1, 2011 due to the decreasein materiality.

Effective from the fiscal year beginning April 1, 2011, Toyota Industries
applies Financial Accounting Standard No. 24 “Accounting Standard
for Accounting Changes and Error Corrections” and its
Implementation Guidance No. 24 “Guidance on Accounting Standard
for Accounting Changes and Error Corrections,” both of which were
issued on December 4, 2009 by the Accounting Standards Board ofJapan, to accounting changes and corrections of prior period errors.

4. Inventories:
Inventories as of March 31, 2012 and 2011 consist of the following:
Millions of yen

Merchandise and finished goods
Raw materials
Work in process
Supplies
Total

2012
¥ 48,183
21,98333,727
12,553¥ 116,447

2011
42,94018,383
31,256
11,682¥ 104,263¥

5. Property, plant and equipment:
Accumulated depreciation as of March 31, 2012 and 2011 is as follows:
Millions of yen(12) Allowance for bonuses to directors, managing
officers and corporate auditors
Bonuses to directors, managing officers and corporate auditors arerecorded on the accrual basis with a related change to income.

(13) Allowance for retirement benefits

The consumption tax under the Japanese Consumption Tax Law
withheld by Toyota Industries on sales of goods is not included in theamount of net sales in the accompanying consolidated statements ofincome, and the consumption tax paid by Toyota Industries under thelaw on purchases of goods and services and expenses is not includedin the related amount.

Toyota Industries accrues an amount which is considered to be
incurred in the period based on the estimated projected benefit
obligations and estimated pension assets at the end of the year. To
provide for the retirement benefits for directors, managing officers andcorporate auditors, an amount which is calculated at the end of theyear as required by an internal policy describing the retirement
benefits for directors and managing officers is accrued.

(18) Income taxes(14) Accounting standards for finance leasetransactions(19) Net income per share

As for the accounting standards for finance lease transactions, net
sales and cost of sales are recognized when the lease payments arereceived or when the lease transactions are started.

16(17) Consumption tax

Toyota Industries Report 2012

The provision for income taxes is computed based on the pretax
income included in the consolidated statements of income. The asset
and liability approach is used to recognize deferred tax liabilities andassets for the expected future tax consequences of temporary
differences between the carrying amounts and the tax bases of assets
and liabilities.

The computation of basic net income per share is based on theweighted-average number of outstanding shares of common stock.
The calculation of diluted net income per share is similar to thecalculation of basic net income per share, except that the weightedaverage number of shares outstanding includes the additional dilution
from potential common stock equivalents such as subscription rights
to shares. Cash dividends per share shown in the statements ofincome are the amounts applicable to the respective years.

Buildings and structures
Machinery, equipment and vehicles
Tools, furniture and fixtures
Total

2012
¥ 212,723
610,658
92,047¥ 915,429

2011¥ 208,325
591,219
88,272¥ 887,816

Accumulated impairment losses are included.

6. Long-term debt:(1) Bonds payable as of March 31, 2012 and 2011 consist of the following:
Millions of yen

1.13% bonds due 2012 without collateral
1.03% bonds due 2012 without collateral
1.46% bonds due 2014 without collateral
1.66% bonds due 2015 without collateral
0.45-1.43% medium-term notes due 2012-2015 without collateral
1.95% bonds due 2016 without collateral
1.72% bonds due 2018 without collateral
1.35% medium-term notes due 2014 without collateral
2.109% bonds due 2019 without collateral
1.109% bonds due 2021 without collateral
Total

2012
¥ 50,000—
20,00030,00013,34819,99526,0002,000
50,00030,000¥ 241,344(54,105)

2011
50,00030,00020,00030,0008,485
19,99426,0002,000
50,000—¥ 236,479¥The amount shown in parentheses in total for 2012 is that redeemed within one year.

17

Toyota Industries Report 2012

8. Assets pledged as collateral:(2) Annual maturities of bonds payable as of March 31, 2012 are as follows:
Millions of yen

Year ending March 31
2013
2014
2015
2016
2017
2018 and thereafter
Total

Total

54,105
4,496
21,64235,10419,995106,000¥ 241,344¥(3) Other debts as of March 31, 2012 and 2011 consist of the following:

Millions of yen

Investments in securities
Trade notes and accounts receivable
Machinery, equipment and vehicles
Buildings and structures
Total

2012
¥ 69,580
655
393
108
¥ 70,737

2011
68,600264
708
115¥ 69,688¥(2) Secured liabilities as of March 31, 2012 and 2011 are as follows:
Millions of yen

Short-term loans payable
Long-term loans payable:
Current portion
Non-current portion
Lease obligations:
Current portion
Non-current portion
Commercial paper
Total(1) Assets pledged as collateral as of March 31, 2012 and 2011 are as follows:

Millions of yen

Weighted-averageinterest rate (%)

2012¥ 67,185

2011¥ 40,712

43,027249,183

59,233
236,602

1.24
1.47

37,61985,754
12,897¥ 495,667

37,87382,813
11,133¥ 468,368

—
—
2.54
—

1.34

The interest rate is the weighted-average interest rate for the ending balances of those debts. The interest rate of lease obligations is omitted since the amount shown on the
consolidated balance sheets does not exclude interest receivable, which is included in total lease payment receivable.

Other current obligations
Short-term loans payable
Long-term loans payable
Total

2012
¥ 24,296
707
77¥ 25,081

2011
23,217894
89¥ 24,200¥

9. Allowance for retirement benefits:
Allowance for retirement benefits including the allowance for retirement benefits to directors (including managing officers) for the years ended March
31, 2012 and 2011 is as follows:
Millions of yen

Allowance for retirement benefits to directors (including managing officers)(4) Annual maturities of other debts as of March 31, 2012 are as follows:

2012
¥
2,198

¥

2011
3,021

Millions of yen

Year ending March 31
2014
2015
2016
2017
2018 and thereafter
Total

Long-termloans payable¥

57,632
37,62728,34828,79596,779¥ 249,183

Leaseobligations¥¥

32,26823,573
16,253
10,9482,710
85,754Total¥

89,901
61,20044,60239,744
99,490¥ 334,938

10. Asset retirement obligations:
The amount of asset retirement obligations as of March 31, 2012 and 2011, which is less than 1% of total liabilities and net assets, is omitted
pursuant to Article 92, paragraph (2) of the Regulation for Terminology, Forms and Preparation of Consolidated Financial Statements.

11. Contingent liabilities:
Toyota Industries is contingently liable for guarantees as of March 31, 2012 and 2011 as follows:
Millions of yen

7. Investments in affiliated companies:

2012
Guarantees given by consolidated subsidiaries

Investments in affiliated companies as of March 31, 2012 and 2011 are as follows:
Millions of yen

Investments in securities (stock)
Investments and other assets (others)

2012
¥
7,597
3,694

¥

2011
8,473
3,556

¥

2011
11

¥

34

12. Export discount bills:
Export discount bills as of March 31, 2012 and 2011 are as follows:
Millions of yen

Export discount bills

18

Toyota Industries Report 2012

2012
¥
633

2011
¥

67

19

Toyota Industries Report 2012

13. Treatment of trade notes that matured at the end of the fiscal year:

18. Comprehensive income:Trade notes receivable and trade notes payable that matured at the end of the fiscal year (March 31, 2012) are as follows:

Recycling and tax effect relating to other comprehensive income as of March 31, 2012 is as follows:
Millions of yen

Trade notes receivable
Trade notes payable

2012
¥
1,004
877

Those notes were regarded as settled at the date due to the fact that the financial institutions were closed on March 31, 2012.

14. Net assets:
Under the Corporation Law of Japan, amounts equal to at least 10% of the sum of the cash dividends and other external appropriations paid by theCompany and its subsidiaries in Japan must be set aside as a legal reserve until it equals 25% of capital stock. The legal reserve may be used toreduce a deficit or may be transferred to capital stock taking appropriate corporate action. In consolidation, the legal reserves of the Company andits subsidiaries in Japan are accounted for as retained earnings. The year-end cash dividend is approved at the Ordinary General Meeting of
Shareholders of the Company held after the close of the fiscal year to which the dividend is applicable. In addition, interim cash dividends may be
paid upon resolution of the Board of Directors, subject to limitations imposed by the Corporation Law of Japan.

15. Research and development expenses:
Research and development expenses, which are included in selling, general and administrative expenses and manufacturing costs, amounted to¥32,070 million and ¥27,788 million for the years ended March 31, 2012 and 2011, respectively.

16. Extraordinary income:For the year ended March 31, 2012, Toyota Industries recorded extraordinary income of ¥4,599 million, arising from a gain on step acquisitions of
Uster Technologies AG.

17. Extraordinary losses:
For the year ended March 31, 2011, Toyota Industries recorded extraordinary losses on the Great East Japan Earthquake of ¥4,631 million, including
fixed costs arising from the suspension of operations (¥4,532 million), expenses for recovery support and monetary condolence.

20

Toyota Industries Report 2012

Millions of yen

2012
Valuation difference on available-for-sale securities
Amount arising during the period
Recycling
Before tax effect adjustment
Tax effect
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Amount arising during the period
Recycling
Before tax effect adjustment
Tax effect
Deferred gains or losses on hedges
Foreign currency translation adjustment
Amount arising during the period
Recycling
Foreign currency translation adjustment
Share of other comprehensive income of associates accounted for using equity method
Amount arising during the period
Other comprehensive income¥

56,513(1,070)55,442
21,31076,752
(325)
52
(273)
95
(177)
(6,818)(2)(6,820)(216)
69,537

19. Financial instruments:(1) Matters concerning financial instruments:(A) Policy for financial instruments
Toyota Industries borrows funds from financial institutions and issues corporate bonds to procure funds to meet its needs for long-term funding.
Toyota Industries also borrows funds from financial institutions and issues commercial paper to procure funds to meet its needs for short-termworking capital. Toyota Industries manages its cash reserves as highly safe financial assets. The purpose of using derivative instruments is to reducerisk, not to obtain earnings from exchanges or for speculative purposes.
(B) Contents and risk of financial instruments
Cash and deposits are subject to credit risk of financial institutions and foreign currency risk. Trade notes and accounts receivable are subject
to counterparty credit risk and foreign currency risk. Lease investment assets are subject to counterparty credit risk, foreign currency risk andinterest rate risk.
Short-term investments and investments in securities are subject to market risk and foreign currency risk.
Trade notes and accounts payable include those denominated in foreign currencies and are thus subject to foreign currency risk. All of them
are due within one year. Loans payable, commercial paper, bonds payable and lease obligations are subject to foreign currency risk and interest
rate risk.
Toyota Industries uses derivative instruments (foreign currency forward contracts, foreign currency option contracts, foreign currency swaps andinterest rate swaps) to cover such kinds of risks, and these transactions are subject to credit risk of financial institutions.
With regard to foreign currency risk, Toyota Industries uses derivative instruments (foreign currency forward contracts and foreign currency option
contracts) for the amount of foreign currency trade assets (trade notes and accounts receivable) offset by foreign currency trade liabilities (tradenotes and accounts payable). Foreign currency swaps and interest rate swaps are used for hedging the foreign currency risk and interest rate risk ofloans, bonds and others.
As for hedge accounting, the method, items, policy and evaluation method of measure of effectiveness are referred to in Note 2 “(15) Hedge
accounting.”(C) Risk management of financial instrumentsa) Management of credit risk (risk of non-execution of contract by counterparty)	In accordance with its treasury policy, Toyota Industries carries out regular monitoring of principal counterparties and strives to quickly
ascertain and minimize concerns about collecting credits due to worsening financial and other conditions of counterparties. In using
derivatives, to reduce credit risk of financial institutions, Toyota Industries engages in transactions only with those financial institutions thathave high credit ratings.
b) Management of market risk (foreign currency risk, interest rate risk, others)	In accordance with its treasury policy, in principle, Toyota Industries uses foreign currency forward contracts, foreign currency option contracts

21

Toyota Industries Report 2012

and foreign currency swaps to hedge foreign currency risk for each currency for its monetary credits and liabilities denominated in foreign
currencies. Toyota Industries uses interest rate swaps to hedge interest rate risk on monetary liabilities. Toyota Industries monitors the financial
condition and reviews the valuations of short-term investments and investments in securities.
c) Management of financing-related liquidity risk (risk that payments cannot be made on due date)In accordance with its treasury policy, Toyota Industries manages liquidity risk with cash reserves and commitment lines.
(D) Supplemental explanation of financial instruments
The fair value of financial instruments includes values based on market values as well as rationally calculated values when market values cannot be
determined. These calculated values could also conceivably change along with the adoption of different premises.

(2) Matters concerning the fair value of financial instruments:
For the year ended March 31, 2012
The amounts in the consolidated balance sheets, fair values and the differences between those as of March 31, 2012 are as follows. Financial
instruments for which ascertaining fair value is extremely difficult are not included in the following chart. Refer to Note 2 regarding these financial
instruments.
Millions of yen

Cash and deposits
Trade notes and accounts receivable
Lease investment assets (current assets)
Short-term investments and investments in securities
Other securities
Lease investment assets (fixed assets)
Total assets
Trade notes and accounts payable
Short-term loans payable
Commercial paper
Current portion of bonds
Lease obligations (current liabilities)
Bonds payable
Long-term loans payable
Lease obligations (long-term liabilities)
Total liabilities
Derivative transactions *3
Derivative instruments for which hedge accounting is not applied
Derivative instruments for which hedge accounting is applied
Total derivative transactions

Carrying
amount *1,*2

Fair value¥ 274,710
192,663
36,570¥ 274,710
192,662
36,570¥

1,245,642
76,566¥1,826,154¥ (168,465)(110,212)(12,897)(54,105)(37,619)(187,238)(249,183)(85,754)¥ (905,477)

1,245,642
73,925¥1,823,513¥ (168,465)(110,212)(12,897)(54,105)(37,619)(196,703)(258,213)(86,561)¥ (924,777)—(2,640)¥
(2,641)
¥
—
—
—
—
—
(9,464)(9,029)(806)¥ (19,300)

Difference

¥
¥

662
(186)
475

¥
¥

662
(186)
475

¥
¥

1. Methods for calculating fair value of financial instruments and matters concerning marketable securities and derivatives(Assets)(1) Cash and deposits
All deposits are short term and fair value approximates the carrying amount. Therefore, fair value for deposits is calculated at the carrying amount.
(2) Trade notes and accounts receivable
These items are categorized into a specified time period, and are stated at present value calculated by the discount rate, which takes into
account the respective period.
(3) Lease investment assets (current assets)
Lease investment assets (current assets) are short term and fair value approximates the carrying amount. Therefore, fair value for these items is
calculated at the carrying amount.
(4) Short-term investments and investments in securities
Other securities refer to stocks, money management funds and negotiable certificates of deposit. Fair value of stocks is calculated based on
prices listed on stock exchanges. Fair value of money management funds and negotiable certificates of deposit is calculated at the carrying
amount since fair value of these assets approximates the carrying amount. Details regarding other securities are referred to in Note 20“Marketable securities.”(5) Lease investment assets (fixed assets)
Fair value is calculated by discounting to net present value the total amount of lease receipts using an expected interest rate when newly
undertaking the same lease transaction.

Toyota Industries Report 2012

2. Financial instruments for which ascertaining fair value is extremely difficult
Millions of yen
Carrying
amountNon-listed stocks¥

Investments in affiliated companies
Other securities
Total

7,597
16,60024,198¥Non-listed stocks are not included in “Short-term investments and investment securities” because there are no market prices and ascertaining fair value is extremely difficult.

3. Amounts of projected future redemptions after March 31, 2012 for monetary credits and liabilities as well as marketable securities with maturities
Millions of yen*1: Allowance for doubtful accounts is excluded from total assets.
*2: The figures for liabilities are indicated in parentheses.
*3: Stated values are the net amounts of assets and liabilities arising from derivative transactions. Net liabilities are represented with parentheses.

22

—
(0)
—

(Liabilities)(1) Trade notes and accounts payable
All notes and accounts payable are short term and fair value approximates the carrying amount. Therefore, fair value for notes and accounts
payable is calculated at the carrying amount.
(2) Short-term loans payable, (3) Commercial paper, (4) Current portion of bonds, (5) Lease obligations (current liabilities)
These items payable are short term and fair value approximates the carrying amount. Therefore, fair value for these items is calculated at thecarrying amount.
(6) Bonds payable
Fair value is calculated by discounting to net present value the total of principal and interest using expected interest rates when newly borrowing
the same amount.
(7) Long-term loans payable
Fair value is calculated by discounting to net present value the total of principal and interest using expected interest rates when newly borrowing
the same amount.
Interest rate swaps that meet the requirement for the preferential accounting method are handled together with the aforementioned long-termloans payable. The fair value of interest rate swaps is included in the fair value of the aforementioned long-term loans payable. The fair value iscalculated by discounting expected future cash flow using interest rates when newly borrowing the same amount.
(8) Lease obligations (long-term liabilities)
Fair value is calculated by discounting to net present value the total amount of lease payments using an expected interest rate when newly
undertaking the same lease transaction.
(Derivative transactions)
Details regarding derivative transactions are referred to in Note 21 “Derivative instruments.”———

Year ending March 31

2013

2014-2017¥ 274,710
192,476—¥ 467,187

Cash and deposits
Trade notes and accounts receivable
Lease investment assets (fixed assets)
Total

¥

—
186
74,763¥ 74,9502023 and
thereafter

2018-2022

¥

¥

—
—
1,802
1,802

¥

¥

—
—
—
—

4. Scheduled repayments of bonds payable, long-term loans payable and lease obligations (long-term liabilities) after the consolidated settlement dateMillions of yen
Year ending March 31

Bonds payable
Long-term loans payable
Lease obligations
Total

2013

¥

¥

2014-2017

—
—
—
—

¥

81,238152,404
83,044¥ 316,686

2023 and
thereafter

2018-2022¥ 106,000
96,7792,566¥ 205,345

¥

¥

—
—
144
144

23

Toyota Industries Report 2012

For the year ended March 31, 2011
Millions of yen

Cash and deposits
Trade notes and accounts receivable
Lease investment assets (current assets)
Short-term investments and investments in securities
Investments in affiliated companies
Other securities
Lease investment assets (fixed assets)
Total assets
Trade notes and accounts payable
Short-term loans payable
Commercial paper
Current portion of bonds
Lease obligations (current liabilities)
Bonds payable
Long-term loans payable
Lease obligations (long-term liabilities)
Total liabilities
Derivative transactions *3
Derivative instruments for which hedge accounting is not applied
Derivative instruments for which hedge accounting is applied
Total derivative transactions

Carrying
amount *1,*2

Fair value¥ 198,654
149,270
35,146¥ 198,654
149,269
35,146

3,911
1,230,638
71,480¥1,689,102¥ (144,956)(99,946)(11,133)(30,829)(37,873)

6,745
1,230,638
68,643¥1,689,098¥ (144,956)(99,946)(11,133)(30,829)(37,873)(205,649)(236,602)(82,813)¥ (849,805)(214,580)(244,838)(82,577)¥ (866,735)

¥

¥

¥

¥

Difference

¥

¥
¥

—
(0)
—
2,834
—
(2,837)
(3)
—
—
—
—
—
(8,930)(8,235)236(16,929)

¥

¥

258
50
309

Millions of yen
Carrying
amountNon-listed stocks
Investments in affiliated companies
Other securities
Total

¥

4,562
16,625
21,187¥Non-listed stocks are not included in “Short-term investments and investment securities” because there are no market prices and ascertaining fair value is extremely difficult.

¥

—
—
—

1. Methods for calculating fair value of financial instruments and matters concerning marketable securities and derivatives(Assets)(1) Cash and deposits
All deposits are short term and fair value approximates the carrying amount. Therefore, fair value for deposits is calculated at the carrying amount.
(2) Trade notes and accounts receivable
These items are categorized into a specified time period, and are stated at present value calculated by the discount rate, which takes into
account the respective period.
(3) Lease investment assets (current assets)
Lease investment assets (current assets) are short term and fair value approximates the carrying amount. Therefore, fair value for these items is
calculated at the carrying amount.
(4) Short-term investments and investments in securities
Fair value of stocks in investments in affiliated companies is calculated based on prices listed on stock exchanges. Other securities are stocks,
money management funds and negotiable certificates of deposit. Fair value of stocks in other securities is calculated based on prices listed on
stock exchanges. Fair value of money management funds and negotiable certificates of deposit approximates the carrying amount. Therefore, fairvalue is calculated at the carrying amount.
Details regarding other securities are referred to in Note 20 “Marketable securities.”(5) Lease investment assets (fixed assets)
Fair value is calculated by discounting to net present value the total amount of lease receipts using an expected interest rate when newly
undertaking the same lease transaction.
(Liabilities)(1) Trade notes and accounts payable
All notes and accounts payable are short term and fair value approximates the carrying amount. Therefore, fair value for notes and accounts
payable is calculated at the carrying amount.
(2) Short-term loans payable, (3) Commercial paper, (4) Current portion of bonds, (5) Lease obligations (current liabilities)
These items payable are short term and fair value approximates the carrying amount. Therefore, fair value for these items is calculated at thecarrying amount.
(6) Bonds payable
Fair value is calculated by discounting to net present value the total of principal and interest using expected interest rates when newly borrowing
the same amount.

Toyota Industries Report 2012

2. Financial instruments for which ascertaining fair value is extremely difficult

3. Amounts of projected future redemptions after March 31, 2011 for monetary credits and liabilities as well as marketable securities with maturities
258
50
309

*1: Allowance for doubtful accounts is excluded from total assets.
*2: The figures for liabilities are indicated in parentheses.
*3: Stated values are the net amounts of assets and liabilities arising from derivative transactions. Net liabilities are represented with parentheses.

24(7) Long-term loans payable
Fair value is calculated by discounting to net present value the total of principal and interest using expected interest rates when newly borrowing
the same amount.
Interest rate swaps that meet the requirement for the preferential accounting method are handled together with the aforementioned long-termloans payable. The fair value of interest rate swaps is included in the fair value of the aforementioned long-term loans payable. The fair value iscalculated by discounting expected future cash flow using interest rates when newly borrowing the same amount.
(8) Lease obligations (long-term liabilities)
Fair value is calculated by discounting to net present value the total amount of lease payments using an expected interest rate when newly
undertaking the same lease transaction.
(Derivative transactions)
Details regarding derivative transactions are referred to in Note 21 “Derivative instruments.”

Millions of yen
Year ending March 31

Cash and deposits
Trade notes and accounts receivable
Lease investment assets (fixed assets)
Total

2012

2013-2016¥ 198,654
149,098—¥ 347,752

¥

¥

—
172
70,20570,3772022 and
thereafter

2017-2021

¥

¥

—
—
1,275
1,275

¥

—
—
—
—

¥

4. Scheduled repayments of bonds payable, long-term loans payable and lease obligations (long-term liabilities) after the consolidated settlement
date
Millions of yen
Year ending March 31

Bonds payable
Long-term loans payable
Lease obligations (long-term liabilities)
Total

2012

¥

¥

2013-2016————¥ 109,655
164,10280,458¥ 354,2162022 and
thereafter

2017-2021¥

95,99472,5001,956¥ 170,450

¥

¥

—
—
398
398

25

Toyota Industries Report 2012

20. Marketable securities:

21. Derivative instruments:(a) Other securities with readily determinable fair value(1) Quantitative disclosure about derivatives for the year ended March 31, 2012

As of and for the year ended March 31, 2012

1) Derivative instruments for which hedge accounting is not applied(a) Foreign currency transactions as of March 31, 2012 are as follows:

Millions of yen
Acquisition
cost

Carrying
amountDifference

Securities with carrying amount exceeding acquisition cost:
StocksOthersSubtotal
Securities with carrying amount not exceeding acquisition cost:¥277,029101
277,131¥1,146,811
123
1,146,934¥869,782
21
869,803

StocksOthersSubtotal
Total

7,691
92,24999,941¥377,072

6,458
92,24998,708¥1,245,642(1,232)—(1,232)¥868,570

Non-listed stocks (total amount is ¥16,600 million in the consolidated balance sheets) are not included in “Other securities” because there are no market prices and ascertaining fairvalue is extremely difficult. “Others” above are mainly money management funds and negotiable certificates of deposit.

Millions of yen

Category

Transactions other thanmarket transactions

As of and for the year ended March 31, 2011
Millions of yen
Acquisition
cost

Carrying
amountDifference

StocksOthersSubtotal
Securities with carrying amount not exceeding acquisition cost:¥ 275,747
101
275,848¥1,090,265
116
1,090,381¥ 814,518
14
814,532

StocksOthersSubtotal
Total

9,325
132,430
141,756¥ 417,605(1,499)—(1,499)¥ 813,033

Non-listed stocks (total amount is ¥16,625 million in the consolidated balance sheets) are not included in “Other securities” because there are no market prices and ascertaining fairvalue is extremely difficult. “Others” above are mainly money management funds and negotiable certificates of deposit.

(b) Other securities sold during the year
As of and for the years ended March 31, 2012 and 2011
Other securities sold are omitted due to their quantitative immateriality.

26

Toyota Industries Report 2012

Type
Foreign currency forward contracts transactions
Buy JPY / Sell USD
Buy JPY / Sell EUR
Buy JPY / Sell other foreign currency
Buy EUR / Sell JPY
Buy SEK / Sell EUR
Buy SEK / Sell GBP
Buy SEK / Sell other foreign currency
Sell SEK / Buy EUR
Sell SEK / Buy GBP
Sell SEK / Buy other foreign currency
Buy other foreign currency
Sell other foreign currency¥Foreign currency option contracts transactions
Buy

Securities with carrying amount exceeding acquisition cost:

7,825
132,430
140,256¥1,230,638

Notional amount
Maturity
Totalover 1 year

¥

388
(6)
388
(6)

Sell
Foreign currency swap transactions
Payment JPY / Receipt USD
Total

222
32
1,168
1,687
18,1691,483
17,23011,041
3,136
7,009
4,712
309

¥

3,494
70,473

¥

—
—
—
—
—
—
—
—
—
—
—
—
—
—

Net unrealized
gain/loss

Fair value

¥

(11)
0
(46)
8
111
5
402
(45)
(17)
5
(18)
(5)

¥

(11)
0
(46)
8
111
5
402
(45)
(17)
5
(18)
(5)

—

0

(6)

—

20

(13)

3,494
3,494

488
897

¥

¥

488
856

The fair value calculation method is based on the index price as of March 31, 2012.

(b) Interest rate transactions as of March 31, 2012 are as follows:
Millions of yen

Category
Transactions other thanmarket transactions

Notional amount
Maturity
Totalover 1 year

Type
Interest rate swap transactions
Fixed rate payment / Floating rate receipt
Total

¥
¥

32,64132,641¥¥

21,584
21,584

Fair value

¥
¥

(194)
(194)

Net unrealized
gain/loss

¥
¥

(194)
(194)

The fair value calculation method is based on the index price as of March 31, 2012.

27

Toyota Industries Report 2012

(2) Quantitative disclosure about derivatives for the year ended March 31, 2011

2) Derivative instruments for which hedge accounting is applied
Category

Deferred hedge
methodType
Foreign currency forward contracts transactions
Buy JPY / Sell USD
Buy JPY / Sell EUR
Buy JPY / Sell AUD
Buy SEK / Sell EUR
Buy SEK / Sell GBP
Buy SEK / Sell other foreign currency
Sell JPY / Buy EUR
Sell SEK / Buy EUR
Sell SEK / Buy GBP
Sell SEK / Buy other foreign currency
Sell other foreign currency
Foreign currency option contracts transactions *1
Buy
Sell

Subtotal
Net valuation method Foreign currency forward contracts transactions
Buy JPY / Sell EUR
using forward foreign
Buy JPY / Sell USD
exchange contracts
Buy JPY / Sell AUD
Sell JPY / Buy EUR
SubtotalPreferential accounting Interest rate swap transactions
Fixed rate payment /method of interest rate
Floating rate receipt
swap transactions
Subtotal
Total

Contents ofhedge¥ 7,076
3,072
1,120
3,337
Accounts
2,832
2,788
receivable
239
1,136
19
214
123

Accounts
receivable

Accounts
receivable

Longterm loans
payable1) Derivative instruments for which hedge accounting is not applied(a) Foreign currency transactions as of March 31, 2011 are as follows:

Millions of yen
Notional amount
Maturity
Totalover 1 year

¥

—
—
—
—
—
—
—
—
—
—
—

Fair valueNet
unrealized
gain/loss

Evaluation method

Millions of yen

Category
¥

(182)
(65)
(3)
43
17
42
1
(7)
0
(2)
(0)

¥

(182)
(65)
(3)
43
17
42
1
(7)
0
(2)
(0)

748
(8)
748
(8)
23,459

—

0

(8)

—
—

29
(128)

(20)
(186)

2,050
1,800
282
140
4,273

—
—
—
—
—

*2

*2

—

Transactions other thanmarket transactions
By the price on
currency option
marketBy theexchange rate
on foreign
currency
market—15,00015,000*2*2

15,000¥42,732

15,000¥15,000

—
(128)

—
(186)

¥

By theexchange rate
on foreign
currency
market¥

By the rate oninterest swap
market*1: The amounts indicated in brackets for foreign currency option contracts transactions refer to the option fee, and the related figures for fair value and net unrealized gain/loss arealso shown.
*2: Fair value and net unrealized gain/loss of derivative instruments for which these accounting methods are applied are inclusively reported as a portion of fair value of their hedge
instruments such as accounts receivable and long-term loans payable (see Note 19).

Notional amount
Maturity
Totalover 1 year

Type
Foreign currency forward contracts transactions
Buy JPY / Sell EUR
Buy JPY / Sell USD
Buy JPY / Sell other foreign currency
Buy SEK / Sell EUR
Buy SEK / Sell GBP
Buy SEK / Sell other foreign currency
Sell SEK / Buy EUR
Sell SEK / Buy GBP
Sell SEK / Buy other foreign currency
Buy other foreign currency
Sell other foreign currency¥Foreign currency option contracts transactions
Buy

¥

1,329
(18)
1,329
(18)

Sell
Foreign currency swap transactions
Payment JPY / Receipt USD
Total

48
13
424
17,612881
19,147
12,676
2,422
10,297
153
52

¥

3,506
69,895

¥

—
—
—
—
—
—
—
—
—
—
—
—
—

Net unrealized
gain/loss

Fair value

¥

(1)
(0)
6
(148)
48
136
38
(39)
(7)
2
0

¥

(1)
(0)
6
(148)
48
136
38
(39)
(7)
2
0

—

2

(16)

—
—
3,506
3,506

22

(3)

471
534

¥

¥

471
490

The fair value calculation method is based on the index price as of March 31, 2011.

(b) Interest rate transactions as of March 31, 2011 are as follows:
Millions of yen

Category
Transactions other thanmarket transactions

Notional amount
Maturity
Totalover 1 year

Type
Interest rate swap transactions
Fixed rate payment / Floating rate receipt
Floating rate payment / Fixed rate receipt
Total

¥
¥

26,325829
27,154¥¥

16,279—16,279Fair value

¥
¥

(241)
9
(231)

Net unrealized
gain/loss

¥
¥

(241)
9
(231)

The fair value calculation method is based on the index price as of March 31, 2011.

28

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Toyota Industries Report 2012

(3) Components of retirement benefit expenses for the years ended March 31, 2012 and 2011 are as follows:2) Derivative instruments for which hedge accounting is applied
Category

Deferred hedge
methodType
Foreign currency forward contracts transactions
Buy JPY / Sell USD
Buy JPY / Sell EUR
Buy JPY / Sell AUD
Buy SEK / Sell GBP
Buy SEK / Sell EUR
Buy SEK / Sell other foreign currency
Sell SEK / Buy EUR
Sell SEK / Buy GBP
Sell SEK / Buy other foreign currency
Sell other foreign currency

Contents ofhedge

Accounts
receivable

Millions of yen
Notional amount
Maturity
Totalover 1 year¥ 1,486
376
229
1,501
1,066
1,569
332
170
89
86

Buy

Subtotal
Foreign currency forward contracts transactions
Buy JPY / Sell USD
Buy JPY / Sell EUR
Buy JPY / Sell AUD
SubtotalPreferential accounting Interest rate swap transactions
Fixed rate payment / Floating rate
method of interest ratereceiptswap transactions
Subtotal
Total

Net valuation method
using forward foreignexchange contracts

—
—
—
—
—
—
—
—
—
—

¥

¥

(9)
(13)
(9)
70
16
41
(2)
(3)
(0)
(3)

Millions of yen
Evaluation method

(9)
(13)
(9)
70
16
41
(2)
(3)
(0)
(3)

By theexchange rate
on foreign
currency
marketAccounts
receivable

Accounts
receivable

Long-term
borrowings

2,541
(31)
2,541
(31)
11,993

—

10

(20)

—
—

45
141

(13)
50

1,274
380
74
1,728

—
—
—
—

25,00025,000¥38,722

*2

*2

—

—

25,000*2*2

25,000¥25,000

—
141

—
50

¥

¥

2012
¥
7,812
3,919
(2,480)(94)
1,423¥ 10,579

Service cost
Interest cost
Expected return on plan assets
Amortization of prior service obligation
Amortization of unrecognized actuarial gains or losses
Retirement benefit expenses

2011
8,149
4,345
(3,194)57
2,290¥ 11,648¥Retirement expenses of subsidiaries which adopted the simplified method are included in service cost.

(4) Assumptions used for calculation of retirement benefits:
2012

2011

By theexchange rate
on foreign
currency market

Discount rate
Expected rate of return on plan assets
Amortization period of prior service obligation

2.00%
2.00%
20 years

Amortization period of unrecognized actuarial gains or losses

20 years

2.00%
3.00%
20 years—Straight-line method over the average remaining
service period of employees from the following year
20 years—Straight-line method over the average remaining
service period of employees from the following year

By the rate oninterest swap
market(5) Plan assets relating to welfare pension fund under multiemployer pension plan:—

Foreign currency option contracts transactions *1
Sell

¥

Fair valueNet
unrealized
gain/loss

By the price on
currency option
market*1: The amounts indicated in brackets for foreign currency option contracts transactions refer to the option fee, and the related figures for fair value and net unrealized gain/loss arealso shown.
*2: Fair value and net unrealized gain/loss of derivative instruments for which these accounting methods are applied are inclusively reported as a portion of fair value of their hedge
instruments such as accounts receivable and long-term loans payable (see Note 19).

Method of attribution of estimated retirement benefits to periodsof employee service:
Straight-line method

Information regarding the welfare pension fund under multiemployer plans
The Japan Society of Industrial Machinery
Manufacturers’ welfare pension fund

Other welfare pension funds¥ 72,256 million¥239,064 million

Estimated benefit obligation¥ 94,726 million¥315,381 million

Variance¥ (22,470 million)¥ (76,317 million)

6.34%

3.79%

The Japan Society of Industrial Machinery
Manufacturers’ welfare pension fund

Other welfare pension funds

As of March 31, 2011
Plan assets

As of March 31, 2012

22. Retirement benefits:

Toyota Industries Group contribution to welfare pension plan

(1) Outline of retirement benefit plans:
The Company and its subsidiaries in Japan maintain non-contributory defined benefit pension plans, lump-sum indemnities plans, welfare pension
fund plans and defined contribution pension plans, all of which are retirement benefit plans. In addition, certain foreign subsidiaries maintainnon-contributory defined benefit pension plans.

As of March 31, 2010
Plan assets¥ 82,259 million¥ 229,880 million

Estimated benefit obligation¥ 95,550 million¥ 299,583 million(2) Components of allowance for retirement benefits as of March 31, 2012 and 2011 are as follows:

Variance¥ (13,291 million)¥ (69,703 million)

6.02%

2.78%

Millions of yen(a) Benefit obligation(b) Plan assets(c) Unfunded benefit obligation [ (a) + (b) ](d) Unrecognized actuarial gains or losses(e) Unrecognized loss in prior service obligation(f) Net amount recognized on the balance sheets [ (c) + (d) + (e) ](g) Prepaid pension expenses(h) Allowance for retirement benefits [ (f) - (g) ]2012¥ (162,756)
105,750(57,005)
21,783(3,790)(39,013)7,762¥ (46,775)2011¥ (146,537)
89,737(56,800)
17,737(3,987)(43,050)853¥ (43,903)

As of March 31, 2011
Toyota Industries Group contribution to welfare pension plan

Certain subsidiaries use the simplified method to determine benefit obligations.
Prepaid pension expenses are included in other investments and other assets.

30

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Toyota Industries Report 2012

23. Stock options:(1) Stock option expenses recorded in the fiscal year and class of options
Millions of yen

2012
¥544

Selling, general and administrative expenses

2011
¥720

The Company

The Company

Position and number ofgrantees

Directors: 17
Managing officers and employees: 159

Directors: 16
Managing officers and employees: 159

Class and number of shares*

1,360,000 shares of common stock

830,000 shares of common stock

Date of issue

August 1, 2008

August 1, 2007

1. Grantee must be employed as a director, managing officer or
regular employee of the Company at the time of exercise. However,this does not apply if no more than 18 months have elapsed after
retirement or resignation from the Company.

Same as left

2. Other conditions of exercise shall be decided as prescribed by theContract for Allotment of Subscription Rights to Shares concludedby the Company and grantee in accordance with resolutions at theGeneral Meeting of Shareholders and resolutions on the issue ofsubscription rights to shares by the Board of Directors.

Same as left

3. In the case where grantee becomes no longer applicable to theconditions of exercise, the grantee immediately loses subscription
rights to shares and must return the rights to the Company without
consideration.

Same as left

Periods that grantees must provide
service in return for stock options

From August 1, 2008 to July 31, 2010

From August 1, 2007 to July 31, 2009

Periods that stock subscription rights
are to be exercised

From August 1, 2010 to July 31, 2014

From August 1, 2009 to July 31, 2013

Millions of yen

2012
¥294

2011
¥308

Condition of settlement of rights(3) Stock option details, number of stock options and state of fluctuation
1) Stock option details
2011

2011

2010

Company name

The Company

Consolidated subsidiary

The Company

Position and number ofgrantees

Directors: 16
Managing officers and employees: 146

Directors: 2
Managing officers and employees: 52

Directors: 14
Managing officers and employees: 153

Class and number of shares*

1,262,000 shares of common stock

320,000 shares of common stock

1,157,000 shares of common stock

Date of issue

August 2, 2010

May 4, 2010

August 3, 2009

1. Grantee must be employed as a director,
managing officer or regular employee of theCompany at the time of exercise. However, thisdoes not apply if no more than 18 months haveelapsed after retirement or resignation from theCompany.

1. Grantee must be employed as a director,
managing officer or regular employee of thesubsidiary at the time of exercise. However, thisdoes not apply grantee’s retirement or
resignation from the subsidiary.

1. Grantee must be employed as a director,
managing officer or regular employee of theCompany at the time of exercise. However, thisdoes not apply if no more than 18 months haveelapsed after retirement or resignation from theCompany.

2. Other conditions of exercise shall be decided
as prescribed by the Contract for Allotment of
Subscription Rights to Shares concluded by theCompany and grantee in accordance withresolutions at the General Meeting of
Shareholders and resolutions on the issue ofsubscription rights to shares by the Board of
Directors.

2. Other conditions of exercise shall be decided
as prescribed by the Contract for Allotment of
Subscription Rights to Shares concluded by thesubsidiary and grantee in accordance withresolutions at the General Meeting of
Shareholders and resolutions on the issue ofsubscription rights to shares by the Board of
Directors.

Condition of settlement ofrights

2. Other conditions of exercise shall be decided
as prescribed by the Contract for Allotment of
Subscription Rights to Shares concluded by theCompany and grantee in accordance withresolutions at the General Meeting of
Shareholders and resolutions on the issue ofsubscription rights to shares by the Board of
Directors.

3. In the case where grantee becomes no longer 3. If there is a change of right of management,
applicable to the conditions of exercise, thethe rights are immediately settled.
grantee immediately loses subscription rights toshares and must return the rights to theCompany without consideration.

3. In the case where grantee becomes no longer
applicable to the conditions of exercise, thegrantee immediately loses subscription rights toshares and must return the rights to theCompany without consideration.

Periods that grantees must
provide service in return forstock options

From August 2, 2010 to July 31, 2012

From May 4, 2010 to May 4, 2011

From August 3, 2009 to July 31, 2011

Periods that stock
subscription rights are to be
exercised

From August 1, 2012 to July 31, 2016

After May 6, 2013

From August 1, 2011 to July 31, 2015

2008

Company name(2) The amount recorded as a profit because of forfeitures of stock option rights

Fiscal year

2009

Fiscal year

2007

Fiscal year

2006

Company name

The Company

The Company

Position and number ofgrantees

Directors: 17
Managing officers and employees: 152

Directors: 30
Managing officers and employees: 134

Class and number of shares*

802,000 shares of common stock

791,000 shares of common stock

Date of issue

August 1, 2006

August 1, 2005

1. Grantee must be employed as a director, managing officer or
regular employee of the Company at the time of exercise. However,this does not apply if no more than 18 months have elapsed after
retirement or resignation from the Company.

Same as left

2. Other conditions of exercise shall be decided as prescribed by theContract for Allotment of Subscription Rights to Shares concludedby the Company and grantee in accordance with resolutions at theGeneral Meeting of Shareholders and resolutions on the issue ofsubscription rights to shares by the Board of Directors.

Same as left——

Periods that grantees must provide
service in return for stock options

From August 1, 2006 to July 31, 2008

From August 1, 2005 to June 30, 2007

Periods that stock subscription rights
are to be exercised

From August 1, 2008 to July 31, 2012

From July 1, 2007 to June 30, 2011

Condition of settlement of rights* Number of options granted by class are listed as number of shares.

* Number of options granted by class are listed as number of shares.

32

Toyota Industries Report 201233

Toyota Industries Report 2012

24. Income taxes:2) Number of stock options and state of fluctuation
Stock options are those outstanding in the fiscal year and are listed as the number of shares.
(a) Number of stock options
Non-exercisable stock options
2011
Company name

Stock options outstanding at the end of the previous
fiscal year
Stock options granted
Forfeitures
Conversion to exercisable stock options
Stock options outstanding at the end of the fiscal year

2011

(shares)

2010

2009

2008

2007

1,262,000

304,000 1,157,000

—

—

—

—

—
—
—
1,262,000

—
—
8,500
—
— 1,157,000
295,500
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

Exercisable stock optionsCompany name

Stock options outstanding at the end of the previous
fiscal year
Conversion from non-exercisable stock options
Stock options exercised
Forfeitures
Stock options outstanding at the end of the fiscal year

Millions of yen

2006

Consolidated
The Company
The Company The Company The Company The Company The Company
subsidiary(shares)

2011

2011

The Company

2010

2009

2008

2007

2006

Consolidated
The Company The Company The Company The Company The Company
subsidiary——— 1,119,000

—
—
—
—

— 1,157,000—
123,900—
150,400—
882,700——
172,000
947,000

609,000

523,000

113,700——
99,000510,000——
89,000434,000——
113,700—(b) Price of options
2011
Paid-in value
Average market price of the stock at the time of exercise
Fair value of options on grant date

The Company¥2,449
—
686

2011

2010

2009

2008

¥2,570
2,556
581

Deferred tax assets:
Allowance for retirement benefits
Depreciation
Accrued expenses
Net operating loss carry-forwards for tax purposes
Securities
Trade receivables
Other
Subtotal
Less: valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Other securities
Depreciation
Land
Reserve for advanced depreciation of non-current assets
Reserve for special depreciation
Other
Total deferred tax liabilities
Net deferred tax liabilities¥

14,689
11,212
7,307
6,408
5,346
2,183
17,14364,290(15,776)
48,514(302,815)(2,468)
(562)
(380)
(199)
(8,268)(314,695)¥ (266,180)

2011
¥

18,096
12,928
7,598
7,940
6,070
1,303
18,122
72,061(22,482)
49,578(324,127)(2,149)
(562)
(447)
(206)
(3,798)(331,293)¥ (281,715)¥3,410—421¥5,866—682

Millions of yen

2007

Consolidated
The Company The Company The Company The Company
subsidiary

CHF 9.4
—
13.97

2012

Net deferred tax liabilities consist of the following components on the consolidated balance sheets.

Yen or CHF

Company name(1) The significant components of deferred tax assets and liabilities as of March 31, 2012 and 2011 are as follows:¥4,642—759(4) Method for estimating the number of confirmed stock option rights
Specifically, because of the difficulty in rationally estimating the number of expired rights in the future, a method has been adopted that reflects actual
past expirations.

Current assets—deferred tax assets
Investments and other assets—deferred tax assets
Current liabilities—deferred tax liabilities
Long-term liabilities—deferred tax liabilities
Net deferred tax liabilities2012¥ 20,368
10,758(3)(297,304)¥ (266,180)

2011
18,4939,786(737)(309,256)¥ (281,715)¥(2) Reconciliations of differences between the statutory rate of income taxes and the effective rate of income taxes forthe years ended March 31, 2012 and 2011 are as follows:
Statutory rate of income taxes
Addition (reduction) in taxes resulting from:
Valuation allowance
Dividends income and others permanently not recognized as taxable income
Other
Effective rate of income taxes

2012
39.9%

2011
39.9%

(7.9%)(4.5%)
1.3%
28.9%(9.0%)(4.6%)
2.9%
29.2%(3) Impact on changes in corporate tax rate
The “Act for Partial Revision of the Income Tax Act, etc. for the Purpose of Creating Taxation System Responding to Changes in Economic andSocial Structures” (Act No. 114 of 2011) and “Act on Special Measures for Securing Financial Resources Necessary to Implement Measures for
Reconstruction Following the Great East Japan Earthquake” (Act No. 117 of 2011) were promulgated on December 2, 2011, resulting in a reductionof corporate tax rates and imposition of a special reconstruction corporate tax. As a result of this change, deferred tax assets decreased by ¥1,671
million, deferred tax liabilities decreased by ¥41,657 million, valuation difference on available-for-sale securities increased by ¥43,405 million andincome taxes—deferred increased by ¥3,419 million.

34

Toyota Industries Report 201235

Toyota Industries Report 2012

25. Leases:(b) Amounts of projected future recovery after March 31, 2012 and 2011 for the portion of lease payment receivables in lease investment assets is
as follows:(1) Finance leases

Millions of yen

1) Finance leases (as a lessee)
Lease assets are mainly materials handling equipment which is leased as operating leases.
The depreciation method of leased assets is referred to in Note 2(9).
As for finance leases other than finance leases deemed to transfer the ownership of leased properties to lessees, those that came into
effect before March 31, 2008 (inclusive) will continue to be accounted for by the former method (similar to the method applicable to ordinary
operating leases).

2012
Year ending March 31
2013
2014
2015
2016
2017
2018 and thereafter
Total(a) Pro forma information regarding the leased properties such as acquisition cost and accumulated depreciation, which are not reflected in theaccompanying consolidated balance sheets under finance leases as of March 31, 2012 and 2011 are as follows:
Millions of yen

2012
Buildings and structures:
Acquisition cost equivalents
Accumulated depreciation equivalents
Buildings and structures net balance equivalents
Machinery, equipment and vehicles:
Acquisition cost equivalents
Accumulated depreciation equivalents
Machinery, equipment and vehicles net balance equivalents
Tools, furniture and fixtures:
Acquisition cost equivalents
Accumulated depreciation equivalents
Tools, furniture and fixtures net balance equivalents
Software:Acquisition cost equivalents
Accumulated depreciation equivalents
Software net balance equivalents
Total net leased properties

¥

¥

¥

¥

¥

¥

5,970
4,464
1,505

¥

2,848
2,457
391

¥

40
39
1
1,924

¥

88
52
36
7,474
5,203
2,270
5,568
4,409
1,159
90
73
17
3,484

¥

Acquisition cost equivalents include the imputed interest expense portion because the percentage which is computed by dividing future minimum lease payments by the total balance ofproperty, plant and equipment at year-end is immaterial.

(b) Pro forma information regarding future minimum lease payments as of March 31, 2012 and 2011 is as follows:
Millions of yen

Due within one year
Due after one year
Total

2012
¥
1,147
1,278
¥
2,425

2011
¥
2,015
2,227
¥
4,242

The amount equivalent to future minimum lease payments as of the end of the year includes the imputed interest expense portion because the percentage which is computed by
dividing future minimum lease payments by the total balance of property, plant and equipment at year-end is immaterial.

Millions of yen

¥

2012
1,563
1,563

¥

2011
2,388
2,388

Pro forma depreciation expenses, which are not reflected in the accompanying consolidated statements of income, are computed mainly by the straight-line method, which assumes
zero residual value and the leasing term to be useful life of assets for the years ended March 31, 2012 and 2011, and are equivalent to the amount of total lease payments of the above.

2) Finance leases (as a lessor)(a) Lease investment assets listed on the consolidated balance sheets as of March 31, 2012 and 2011 are as follows:
Millions of yen

Lease receivables
Residual value
Unearned interest income
Total

36

Toyota Industries Report 2012¥35,90227,447
18,194
9,936
3,612
757
95,851¥(c) Information regarding leased properties such as acquisition cost and accumulated depreciation under finance leases as of March 31, 2012 and2011 is as follows:
Millions of yen

2012
Machinery and equipment:
Acquisition cost
Accumulated depreciation
Total net leased property

¥
¥

3,474
3,181
292

2011
¥

4,990
4,609
380

¥

(d) Pro forma information regarding future minimum lease income as of March 31, 2012 and 2011 is as follows:
Millions of yen

Due within one year
Due after one year
Total

2012
¥
154
4
¥
159

2011
699
288
¥
988
¥

Future minimum lease income under finance leases include the imputed interest income portion because the percentage which is computed by dividing the total of future minimum
lease income and estimated residual value by the total of future minimum lease income and estimated residual value and the balance of operating receivables at the year-end isimmaterial.

(e) Total lease payments to be received and depreciation expenses for the years ended March 31, 2012 and 2011 are as follows:
Millions of yen

Total lease payments to be received
Depreciation expenses

2012
¥
311
¥
67

¥
¥

2011
606
282

(2) Operating leases(c) Total lease payments and pro forma depreciation expenses for the years ended March 31, 2012 and 2011 are as follows:

Lease payments
Pro forma depreciation expenses

37,70228,142
19,40012,0704,846
1,115¥ 103,277

As for finance leases other than finance leases deemed to transfer the ownership of leased properties to lessees, those that came into effect before March 31, 2008 (inclusive) willcontinue to be accounted for by the former method (similar to the method applicable to ordinary operating leases).

2011
88
62
26

¥

2011

2012
¥ 103,277
27,588(17,728)¥ 113,136

2011
95,851
26,861(16,085)¥ 106,627¥1) Operating leases (as a lessee)
Pro forma future lease payments under operating leases as of March 31, 2012 and 2011 are as follows:
Millions of yen

Due within one year
Due after one year
Total

2012
¥
8,017
31,879¥ 39,896

2011
6,889
29,645¥ 36,534¥2) Operating leases (as a lessor)
Pro forma information regarding future minimum rentals under operating leases as of March 31, 2012 and 2011 is as follows:
Millions of yen

Due within one year
Due after one year
Total

2012
¥ 23,800
34,815¥ 58,616

2011
20,43735,652¥ 56,090¥37

Toyota Industries Report 2012

26. Changes in net assets:

27. Subsequent events:(1) Common stock outstanding for the years ended March 31, 2012 and 2011:
sharesBalance at March 31, 2010
Increase
Decrease
Balance at March 31, 2011
Increase
Decrease
Balance at March 31, 2012

325,840,640——
325,840,640——
325,840,640(2) Treasury stock outstanding for the years ended March 31, 2012 and 2011:
sharesBalance at March 31, 2010
Increase due to purchase of odd stock
Decrease due to sale of odd stock
Balance at March 31, 2011
Increase due to purchase of odd stock
Decrease due to sale of odd stock
Balance at March 31, 2012

14,269,943
6,183
(405)
14,275,721
2,308(124,410)
14,153,619(3) Subscription rights to shares outstanding for the years ended March 31, 2012 and 2011:
Millions of yen

2012
¥
2,310

The Company

¥

2011
2,132

(4) Dividends(a) Dividends paid for the year ended March 31, 2012
Resolutions

Ordinary General Meeting of Shareholders held on June 16, 2011
Board of Directors meeting held on October 28, 2011

Class ofsharesCommonstock
Commonstock

Total
dividends
Millions ofyen

Dividends
per share¥7,789

¥25

7,792

25

Yen

Recorddate

Effective
date

March 31,2011
September
30, 2011

June 17,2011
November25, 2011(b) Dividends with a record date in the fiscal year ended March 31, 2012 for which the effective date falls in the following fiscal year
Resolutions

Ordinary General Meeting of Shareholders held on June 14, 2012

Class ofsharesTotal
dividends
Millions ofyen

Source ofdividends

Dividends
per share

Commonstock¥7,792Retainedearnings

Class ofsharesTotal
dividends
Millions ofyen

Dividends
per share¥6,231

¥20

7,789

25

Yen

¥25

Recorddate

Effective
date

March 31,2012

June 15,
2012

Ordinary General Meeting of Shareholders held on June 23, 2010
Board of Directors meeting held on October 29, 2010

Commonstock
Commonstock

Yen

Recorddate

Effective
date

March 31,2010
September
30, 2010

June 24,2010
November26, 2010

Ordinary General Meeting of Shareholders held on June 16, 201138

Toyota Industries Report 2012

28. Business combination:(1) Outline of the business combination(a) Name and business of the acquired company
Uster Technologies AG (Manufacture and sales of instruments for yarn testing and cotton classing)(b) Main reason for business combination
Toyota Industries intends to strengthen its textile machinery business by adding Uster’s excellent quality management system and superiorsensing and information handling technologies to its lineup of products and services.
(c) Date of business combination
February 15, 2012(d) Legal format of the business combination
Share acquisition(e) Name of the acquired company after business combination
Uster Technologies AG(f) Percentage of voting rights held by the Company
Percentage of voting rights held before the business combination
28.46%
Percentage of voting rights additionally acquired at the date of business combination 21.88%
Percentage of voting rights held after the business combination
50.34%(g) Main reason for deciding to acquire the company
The Company holds a majority of total voting rights of Uster Technologies AG and has definitive control over Uster’s decision-making body.

Class ofsharesTotal
dividends
Millions ofyen

Source ofdividends

Commonstock¥7,789Retainedearnings

Dividends
per shareYen¥25

The acquired company’s account closing date is December 31 of each calendar year. Since the Company is using the acquired company’s financial
statements for the fiscal year, there are no periods that correspond to this category.

(3) Acquisition cost of the acquired company
Acquisition cost: ¥15,627 million(4) Difference between acquisition cost of the acquired company and total acquisition cost of individual transactions
leading to acquisition
Gain on step acquisitions: ¥4,559 million(d) Dividends with a record date in the fiscal year ended March 31, 2011 for which the effective date falls in the following fiscal year
Resolutions(1) Background of dissolution
Since the current PC market growth has dramatically slowed down and competition in the semiconductor package substrates industry has
intensified, TIBC Corporation will dissolve after the company discontinues production around December 2012.
(2) Overview of the applicable subsidiary as of March 31, 2012(a) Company name
TIBC Corporation(b) Business
Manufacture of semiconductor package substrates(c) Ownership ratio
The Company: 60%(d) Amounts of assets¥6,157 million (Property, plant and equipment: ¥2,036 million)(e) Amounts of liabilities¥3,558 million(3) Schedule for dissolution
January 2013 (planned)(4) Impact on financial performance
The Company is looking closely into the impact on financial results.

(2) Period of the acquired company’s financial results included in the consolidated financial statements(c) Dividends paid for the year ended March 31, 2011
Resolutions

The Company decided to agree to dissolve its consolidated subsidiary, TIBC Corporation, at the meeting of its board of directors held on
June 12, 2012.

Recorddate

Effective
date

March 31,2011

June 17,201139

Toyota Industries Report 2012

29. Segment information:(5) Goodwill(a) Amount of goodwill¥6,925 million(b) Reason for recognizing goodwill
The extra earning potential expected to be delivered through the future development of the business(c) Method and period of amortization
Straight-line method over 10 years(1) Outline of reporting segments
The operating segments reported below are the segments of Toyota Industries for which separate financial information is available and for which
operating income/loss amounts are evaluated regularly by executive management in deciding how to allocate resources and in assessing
performance.
The reporting segments of Toyota Industries consist of Automobile, Materials Handling Equipment, Logistics, Textile Machinery and Others.
The similarity of products and services are taken into account for the separation. Within the Automobile Segment, vehicles, engines, car airconditioning compressors and others are included due to the similarity of their business environments. The main products and services of eachsegment are as follows.

(6) Amounts and breakdown of assets and liabilities acquired on the day of the business combination(a) Assets
Millions of yen¥Current assets
Fixed assets
Total assets

¥

5,909
25,99631,906(b) Liabilities
Millions of yen¥Current liabilities
Fixed liabilities
Total liabilities

¥

3,799
10,807
14,606(7) Amounts allocated to intangible assets other than goodwill, and their breakdown, and weighted averageamortization period by major category¥¥

13,891
2,861
3,969
2,695
71
23,489Amortization period
Non amortizable intangible assets
Amortization period
Amortization period
Amortization period
Weighted average amortization period

10 years
25 years
5 years
18 years¥

16,971
3,005
2,851
1,043

(Calculation method of the approximate amounts)
The approximate amounts of impact on the consolidated statements of income were regarded as the differences between net sales and income
data estimated assuming that the business combination had been completed on the commencement date of the fiscal year and the actual net sales
and income data that are recorded in the consolidated statements of income. The approximate amounts include the amount of amortization of
goodwill, but they are different from results of operations if the business combination had been completed on the commencement date of the fiscal
year. Moreover, the information mentioned above has not been audited.

(9) Others
The acquired company is listed on the Swiss stock exchange. The Company made a takeover bid during the period from March 15 to May 4, 2012,
as the percentage of shares held by the Company exceeded one-third of the outstanding shares as stipulated under the regulations of the Swissstock exchange. Consequently, the Company has acquired 99.4% of the voting rights in the acquired company as of the date of publication of thisreport. The Company will make a compulsory acquisition of the remaining shares in the acquired company pursuant to the relevant Swiss laws,
proceed with the de-listing of its shares and make it a wholly owned subsidiary.

Toyota Industries Report 2012

Millions of yen

20 yearsMillions of yen

40

The accounting method of reporting segment information is based on “Summary of significant accounting policies.”
Segment income is based on operating income.
Inter-segment sales and transactions are based on arm’s-length price.

As of and for the years ended March 31, 2012 and 2011:(8) Approximate amounts of impact on the consolidated statements of income for the fiscal year ended March 31, 2012,
assuming that the business combination had been completed on the commencement date of the fiscal year
Net sales
Operating income
Ordinary income
Net income(2) Calculation method of reporting segment information(3) Business segments

Millions of yen

List of customers
Trademark rights
Technique
USTER® STATISTICS
Other intangible assets
Intangible assets other than goodwill

Automobile 	�������������������������������������������������������� Vehicles, diesel and gasoline engines, car air-conditioning compressors, foundry parts for engines,
electronics components for automobiles
Materials Handling Equipment 	���������������������������� Lift trucks, warehouse trucks, automated storage and retrieval systems, aerial work platforms
Logistics 	������������������������������������������������������������ Land transportation services, cash collection and delivery and cash proceeds management
services, data storage, management, collection and delivery services
Textile Machinery 	������������������������������������������������ Weaving machinery, spinning machinery
Others 	���������������������������������������������������������������� Semiconductor package substrates

2012

2011

¥ 803,176
23,747
826,924¥ 804,167
21,151
825,319570,741445
571,187490,676654
491,330

92,973
9,413
102,387

107,773
8,069
115,842

38,541
54
38,596

42,79512
42,80737,91912,57550,495
1,589,589(46,236)¥1,543,352

34,426
11,853
46,279
1,521,580(41,740)¥1,479,839¥¥

Sales:
Automobile
Outside customer sales
Inter-segment transactions
Materials Handling Equipment
Outside customer sales
Inter-segment transactions
Logistics
Outside customer sales
Inter-segment transactions
Textile Machinery
Outside customer sales
Inter-segment transactions
Others
Outside customer sales
Inter-segment transactions
Subtotal
Elimination of inter-segment transactions
Total
Segment income:Automobile
Materials Handling Equipment
Logistics
Textile Machinery
OthersElimination of inter-segment transactions
Total

¥

21,23938,241
4,632
2,049
3,639
290
70,092¥

32,87623,999
5,397
2,592
3,445
485
68,79841

Toyota Industries Report 2012

(4) Related information

Millions of yen

2012

2011

¥ 334,825
538,049
177,756
47,97979,667
1,478,705¥2,656,984¥ 305,871
499,120
191,774
15,27761,8081,407,600¥2,481,452¥41,49931,123
6,914
813
1,655
—
82,006

¥

—
2,215
3,146
—
—
—
5,361

¥

Assets:Automobile
Materials Handling Equipment
Logistics
Textile Machinery
OthersCorporate or elimination of inter-segment transactions
Total
Depreciation:
Automobile
Materials Handling Equipment
Logistics
Textile Machinery
OthersCorporate or elimination of inter-segment transactions
Total
Amortization of goodwill:
Automobile
Materials Handling Equipment
Logistics
Textile Machinery
OthersCorporate or elimination of inter-segment transactions
Total
Investment in equity method company:
Automobile
Materials Handling Equipment
Logistics
Textile Machinery
OthersCorporate or elimination of inter-segment transactions
Total
Increase in tangible assets and intangible assets:
Automobile
Materials Handling Equipment
Logistics
Textile Machinery
OthersCorporate or elimination of inter-segment transactions
Total

¥
¥

¥
¥

¥
¥

958
5,972
—
—
—
—
6,931

38,90953,131
6,180
471
2,518
—
¥ 101,211

¥

¥
¥

¥
¥

¥

41,81330,845
7,298
904
1,725
—
82,587
0
2,465
3,374
—
—
—
5,840
1,691
2,148
—
—
—
—
3,840
22,95337,453
7,215
473
1,433
—
69,528Geographical segments
As of and for the years ended March 31, 2012 and 2011:
Millions of yen

Sales:Japan
U.S.A.
OthersTotal
Tangible assets:
Japan
Others
Total
Major customer:
Sales (Automobile Segment)
Toyota Motor Corporation
Total
Unamortized segment balance of goodwill:
Automobile
Materials Handling Equipment
Logistics
Textile Machinery
OthersCorporate or elimination of inter-segment transactions
Total
Impairment loss: Not applicable
Negative goodwill: Negative goodwill is omitted due to its quantitative immateriality.

2012

2011

¥ 927,777
190,594
424,980¥1,543,352¥ 937,349
148,756
393,734¥1,479,839¥ 344,087
136,965¥ 481,053¥ 376,797
120,480¥ 497,278¥ 591,281¥ 591,281¥ 607,201¥ 607,201

¥

¥

¥

—
13,663
48,235
6,925——
68,824¥

—
17,02751,546———
68,57330. Related party transactions (non-consolidated basis):(1) The following transactions were carried out with related parties (entity only):(a) Sales of goods and services for the years ended March 31, 2012 and 2011 were as follows:
Millions of yen

Toyota Motor Corporation2012¥ 590,640

2011¥ 606,592

Toyota Motor Corporation held 24.60% of the Company’s voting rights as of March 31, 2012. As for the sales of automobiles and engines, etc.,
the Company offers prices on such products based on their overall costs and negotiates conditions for each fiscal year, as per conditions on
arm’s-length transactions. The above transactions are carried out based on commercial terms and conditions. Transaction amounts exclude
consumption taxes.
(b) Purchase of goods for the years ended March 31, 2012 and 2011 were as follows:
Purchase of goods:
Millions of yen

Toyota Motor Corporation2012¥ 415,246

2011¥ 434,947

As for the purchase of parts of automobiles and engines, etc., the Company negotiates conditions for each fiscal year, based on offered prices onsuch products, as per conditions on arm’s-length transactions. The above transactions are carried out based on commercial terms and conditions.
Transaction amounts exclude consumption taxes.

42

Toyota Industries Report 201243

Toyota Industries Report 2012

33. Cash and cash flows:(c) Outstanding balances arising from sale/purchase of goods/services as of March 31, 2012 and 2011 were as follows:
Receivables from a related party:

The relationship between the accounts in the consolidated balance sheets and the remaining balance of cash and cash equivalents as of March 31,
2012 and 2011 is as follows:

Millions of yen

2012
Toyota Motor Corporation
Accounts receivable
Trade notes receivable¥

27,021
6,888

2011
¥

11,102—

Payables to a related party:
Millions of yen

Toyota Motor Corporation2012¥ 42,726¥2011
36,309Millions of yen

Cash and deposits
Deposits which have a maturity of over three months to one year
Short-term investments (securities) which have an original maturity within three months
Cash and deposits for business engaged in collection and delivery
Cash and cash equivalents

2012¥ 274,710(19,292)
92,249(50,856)¥ 296,811

2011¥ 198,654(90,087)
132,430(45,431)¥ 195,566

The balance as of March 31, 2012 and 2011 includes consumption taxes.

(2) The following transactions were carried out with related parties (person only):(a) Exercise of stock options for the year ended March 31, 2012 was as follows:
Millions of yen

2012
¥

Hirotaka Morishita (Senior Managing Director of the Company)
Yorihito Ikenaga (Director of the Company)

51
51

This transaction refers to the exercise of the subscription rights to shares as stipulated in Article 236, 238 and 239 of the Corporation Law of Japan.
The exercise of the subscription rights to shares has been issued following approval of a special resolution at the Ordinary General Meeting of
Shareholders held on June 19, 2009.

31. Net income per share (EPS):
The basis of calculation for net income per share basic and net income per share diluted is as follows:
Millions of yen

2012
Net income per share—basic:
Net income
Net income not attributable to common shareholders(bonuses for directors and statutory auditors that are paid through appropriation)
Net income attributable to common shareholders
Weighted-average shares (thousands)
Net income per share —basic (exact yen amounts)
Net income per share—diluted:¥58,594—58,594
311,646¥ 188.02
¥
—

2011
¥

47,205—47,205311,568¥ 151.51¥—

Amounts for net income per share—diluted are not shown due to no dilutive shares.

32. Net assets per share:
The basis of calculation for net assets per share is as follows:
Millions of yen

Net assets per share:
Total net assets
Amounts deducted from total net assets
Subscription rights to shares
Minority interests in consolidated subsidiaries
Net assets applicable to common stock at end of year
Outstanding shares of common stock at end of year used for the computation
		 of net assets per share (thousands)
Net assets per share (exact yen amounts)

44

Toyota Industries Report 2012

2012

2011

¥1,197,841¥1,075,939

2,310
54,051
1,141,480
311,687

2,132
45,589
1,028,217
311,564¥ 3,662.26¥ 3,300.17

45

Toyota Industries Report 2012

Report of Independent Auditors

46

Toyota Industries Report 2012

Memo

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www.toyota-industries.com

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