Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Taking the Initiative for Growth – 1

Taking the Initiative for Growth – 1

Contributing to Logistics Efficiencies of Customers byProviding Support throughout the Logistics Lifecycle
The needs for automation and labor saving in logistics operations are growing, driven mainly by a higher
logistics volume on the back of an expanding world economy and a growth in e-commerce transactions aswell as by the spread of COVID-19. Toyota Industries’ Materials Handling Equipment Business provides
support throughout the value chain encompassing from the sales of lift trucks and other materials handlingequipment to the provision of after-sales services. Leveraging the comprehensive strengths of engaging in theLift Truck Business and Logistics Solutions Business, we are striving to assist customers in attaining greater
logistics efficiencies.

Importance of Logistics andMarket Growth Potential

In acting as a lubricant for economic activities, logistics havecome to play an important role in our daily lives.
Recently, logistics volume has been progressively
increasing year after year marked by a rising global
population and expanding economies. With the growth ofthe e-commerce market, the trend toward a higher logistics
volume is expected to continue for the foreseeable future. Inaddition, a labor shortage in developed countries and asurge in labor costs mainly in emerging countries have
converged to drive a further increase in needs for greater
logistics efficiencies.

Offering Support throughout
the Logistics Lifecycle

World e-Commerce Market*1(US$ billion)
4,000
3,500
3,000
2,500
2,000
1,500
1,000
5000(FY)

151617181920*1: P roduced by Toyota Industries based on “Study Report on a Structural Analysis of
the ICT Industry in the IoT Era and Verification of ICT’s Multifaceted Contribution toEconomic Growth,” Japan’s Ministry of Internal Affairs and Communication (2016)

It is important to conduct proper maintenance on materials
handling equipment and systems and keep them in
optimum operating condition to maximize the efficiency oflogistics sites. Toyota Industries has in place a structure that
customers can rely on by establishing extensive sales andservice networks throughout the world and assigning highly
skilled staff.
Moreover, we leverage the know-how nurtured byresponding to various needs required at global logistics sites
and propose the most advantageous solutions for logistics
improvements for each and every customer.
In the future as well, we are committed to contributing tobetter logistics efficiencies by offering support to customers
throughout the logistics lifecycle extending from after-sales
services to fleet management and preventive maintenanceutilizing IT technologies, lift truck leasing, consulting forlogistics improvements and other logistics solutions.

Research &Development• Ahead of the times• Customer needs• Performance• Ecology• Design

Aftersales services• Customer first• Worldwide• Professional
excellence• Genuine parts• Best practices

Production• Toyota
Production
System (TPS)• Kaizen(improvement)• Environmental• Just-in-time• Jidoka(automation)

ProductBusiness solutions• Fleet management• Rental• Used• Sales financing• Logistics• Quality• Safety• Durability• Efficiency• Innovative• Recyclable

Strengths of Toyota Industries’ Materials Handling Equipment Business
Lift Truck Business
Product differentiation on the back of key
components developed in-house

Utilization of IT technologies for fleet
operation management and more efficientand sophisticated services

Proposals for improvements at logistics sites
based on long-accumulated experience andToyota Production/Logistics Systems

Broad product lineup, including global
top-share*2 lift trucks

Globally extensive sales andservice networks

Customer support throughout the lifecycleof products

Highly experienced andskilled service staff

Logistics Solutions Business
Collaboration with the Lift Truck Business,
which boasts a top market share*2
Synergistic effects through acomplementary relationship among ToyotaIndustries, Bastian and Vanderlande

Extensive product lineup andexcellent softwaredevelopment competence

Business structure extending
throughout the world
Well-balanced sales composition in suchsectors as e-commerce, parcel andairport-related businesses

The following pages introduce case examples in which we leveragedthese strengths to successfully contribute to greater logistics efficiencies of customers.
*2: Survey by Toyota Industries Corporation

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Toyota Industries Report 2021

19

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Taking the Initiative for Growth – 1CaseExample

1

Providing a Stable and Efficient Logistics Environment
through Extensive After-Sales Services

One of Toyota Material Handling Japan’s (TMHJ) strengths lies in its ability to render solid support tocustomers’ logistics environments through comprehensive after-sales services provided by highly experienced
and skilled service staff. Offering full maintenance services, including preventive maintenance, contributes toavoiding unexpected breakdowns and realizing customers’ stable and efficient logistics operations.

Entrusted with Lift Truck Management

One of the strengths of Sobu Logistics Corporation is tooperate six distribution center warehouses and 40 truck
terminals that enable products to be delivered on thefollowing day of orders placed.
Lift trucks play a critical role of delivering products
to customers in the optimum condition on time. At theNoda Delivery Center, where an average of 1,200 tons ofKikkoman products are shipped every day, approximately
40 lift trucks are in use for loading/unloading operations.
Including lift trucks used at other distribution center
warehouses, Sobu Logistics possesses more than 100 lifttrucks. With numerous lift trucks in operation, the company
had been faced with lift truck management issues such as

20CaseExample

2Utilizing Telematics Functions to Increase Safety and Reduce Costs

Improvements in information and communication technology have advanced the use of the Internet of Things (IoT) insociety. As such, the role of telematics technologies in the fleet management of lift trucks has become increasinglyimportant. Toyota Material Handling Europe’s (TMHE) Toyota I_Site fleet management system harnesses cutting-edge
technologies and the know-how cultivated through various improvement activities to make it possible to comprehendthe operating status of lift trucks in real time and establish a safe and reliable logistics environment.

Sobu Logistics CorporationDanske Fragtmænd

Sobu Logistics Corporation is responsible
for logistics operations in Japan for theKikkoman Group, which manufacturesand sells condiments and processed
foods. The company is consigned toprovide comprehensive logistics
operations, from receiving orders topurchasing products, of Kikkoman
Corporation and Kikkoman Foods, Inc.

Danske Fragtmænd is Denmark’s largest
logistics operator boasting more than a
100-year history. With more than 40,000
business customers, the company offershigh-quality logistics services including
next-day deliveries anywhere in thecountry.

arranging for repairs in times of unexpected breakdowns,incurring high maintenance costs and keeping track of thenumber of lift trucks required at any given time.
TMHJ conducted a multifaceted study on operating
hours, traffic lines and other aspects of Sobu Logistics’ lift
trucks and proposed an optimum logistics environment,
which resulted in Sobu Logistics entrusting TMHJ with themanagement of all their lift trucks. Providing full maintenanceservices, including preventive maintenance, has contributed
to decreasing unexpected breakdowns of lift trucks andreducing or leveling out maintenance and management
costs. This has made it unnecessary to retain backup lift
trucks, thereby reducing the total number of vehicles.

Responding to Stringent Safety
Requirements and Offering Support toCustomers

With an ever-increasing package volume for delivery, Danske
Fragtmænd is striving to ensure the safety of its lift truck
operators. Approximately 40 lift trucks are in operation
within a limited space at their warehouse in Taulov, and thecompany wanted to reduce impacts between lift trucks andracks or loads, or collisions between lift trucks. To resolve
this issue, TMHE made a proposal to utilize Toyota I_Site
to raise safety awareness among lift truck operators andreduce accidents.
Should an accident occur, the fleet management system
makes it possible to identify the date and the pattern of[Customer’s Voice][I_Site Manager’s Voice]In our business, we tend to place an extra load on
our lift trucks, but we find Toyota lift trucks very
reliable. TMHJ service staff quickly arrive when weneed them, make proposals for an appropriate
model and the number of lift trucks corresponding tochanges in our operating situation and makerecommendations for the proper timing of truck
replacements. In these and other ways, we are
extremely satisfied with TMHJ’s swift response.

The customer has been greatly benefiting from theintroduction of Toyota I_Site. When an accident has
occurred, the customer can easily identify which lift
truck and which operator was involved, allowing
them to quickly make appropriate responses. Suchincidents are also recorded in the system, whichmakes it easier to instruct operators to practice safe
driving.

Toyota Industries Report 2021

Mr. Hiroshi Tobe

Mr. Søren Vester

President
Sobu Logistics Corporation

I_Site Manager
Toyota Material Handling Denmark

the impact as well as which lift truck was involved and thedriver. The system also evaluates each operator’s operationfrom safety and environmental aspects, such as hardbraking, sudden acceleration and other reckless driving
practices as well as the fuel consumption status, thereby
contributing to increasing the safety awareness of operators.
In addition, Toyota I_Site helps the company to reducemanagement costs by understanding the operational statusof each lift truck in detail in real time, which in turn enables
the optimization of the number of lift trucks needed for its
logistics operations.

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