Summary of Business Activities

Business Performance for the Year Ended March 31, 2009Materials Handling Equipment
Main Products• Lift trucks• Warehouse trucks• Aerial work platforms• Automated storage and retrieval
systems• Automatic guided vehicles

Automobile
Main Products• Passenger vehicles (Vitz [Yaris outside Japan],
RAV4, Mark X ZiO)

• Diesel engines• Gasoline engines• Car air-conditioning compressors• Electronic components for automobiles• Foundry parts• Stamping dies

Logistics
Main Services• Land transportation services• Logistics planning• Operation of distribution centers• Cash collection and delivery and cash
proceeds management services• Data storage, management,collection and delivery services

Textile Machinery
Main Products• Ring spinning frames• Roving frames• Air-jet looms

OthersMain Products• Semiconductor package substrates• Manufacturing equipment

6

Toyota Industries Report 2009

In the materials handling equipment industry as a whole, the global market deteriorated,
experiencing an unprecedentedly sharp drop particularly since October 2008. Amid thisenvironment, unit sales of lift trucks, a mainstay product of this segment, decreased for boththe TOYOTA and BT brands despite vigorous sales promotion activities worldwide. In addition,a decrease in sales of aerial work platforms and the negative impact of foreign exchange rate
fluctuations resulted in a decrease in net sales of ¥143.5 billion, or 18%, to ¥639.6 billion.

The automobile industry underwent a rapid market contraction in developed countries while market
growth slowed in emerging markets, in which expansion was expected. Amid this environment, net salesof the Automobile Segment totaled ¥755.9 billion, a decrease of ¥213.3 billion, or 22%.
Within this segment, net sales of the Vehicle Business were ¥378.1 billion, a decrease of ¥122.0
billion, or 24%, due primarily to decreases in sales of the Vitz (Yaris outside Japan), RAV4 and Mark X ZiO.
Net sales of the Engine Business totaled ¥156.6 billion, falling ¥22.1 billion, or 12%. This was mainly
attributable to a decrease in sales of AD diesel engines, which are installed primarily in the RAV4.
Net sales of the Car Air-Conditioning Compressor Business decreased ¥67.2 billion, or 26%, to¥186.3 billion, as a result of a dramatic decrease in production at automakers in North America, Europe
and Japan.

The overall operating environment remained severe in the logistics industry as the volume ofcargo transport continued to decline in the domestic market. Amid this environment, net salesof the Logistics Segment totaled ¥114.8 billion, a decrease of ¥2.7 billion, or 2%. Although salesrose for such specialized service operations as cash collection and delivery and cash proceeds
management as well as data storage, management, collection and delivery services, this wasoffset by a decrease in sales of the cargo transport business of automotive parts.

In the textile machinery industry, the markets rapidly deteriorated in China and India, our primarymarkets, as a result of the economic slowdown in Europe and the United States. Amid thisenvironment, net sales of the Textile Machinery Segment amounted to ¥29.5 billion, a decreaseof ¥36.7 billion, or 55%, attributable mainly to a sharp drop in sales of air-jet looms, our mainstay
product, to China.

The Others Segment includes TIBC Corporation, a joint venture with IBIDEN CO., LTD., that
produces semiconductor package substrates. Amid a deteriorating market environment, net salesof the Others Segment totaled ¥44.2 billion, a decline of ¥20.0 billion, or 31%.

Percentage of
Net Sales

Net Sales

Operating Income(¥ Billion)(¥ Billion)

800

50
40

600

30
400

40.4%

20
200

GENEO-B

TraigoElectric counterbalanced
lift truck

Electric lift truck

SB12A
Truck mount aerial work
platform

ES14electric compressor

10

0
(FY)

Percentage of
Net Sales

0

07

08

09

(FY)

07

08

09

Net Sales

Operating Income (Loss)(¥ Billion)(¥ Billion)

1,000

60

(Scroll type)

800

Vitz

47.7%

(Yaris outside Japan)

40

600
20
400
0

200

AD
diesel engine

PCU direct cooling device
for the new Prius0(FY)

Percentage of
Net Sales
7.2%

-20

07

08

09

(FY)

07

08

09

Net Sales

Operating Income(¥ Billion)(¥ Billion)

120

5

100

4

80

3

60
2

40
Cash collection and delivery andcash proceeds management
services

Data storage, management,collection and delivery services

1

20

Land transportation services

0
(FY)

0

07

08

09

(FY)

07

08

09

Percentage of
Net Sales

Net Sales

Operating Income (Loss)(¥ Billion)(¥ Billion)

1.9%

80

5

60
2.5
40

RX240 series

JAT710Ring spinning frame

Air-jet loom

0

20
0
(FY)

Percentage of
Net Sales
2.8%

-2.5

07

08

09

(FY)

07

08

09

Net Sales

Operating Income (Loss)(¥ Billion)(¥ Billion)

80

8
6

60

4
40
2

Flip chip package substrate for PC
microprocessor unit

20

0

0
(FY)

-2

07

08

09

(FY)

07

08

09

Note: Segment net sales figures do not include inter-segment transactions. However, segment operating income (loss) figures do include operating income (loss) arising from inter-segment transactions.

Toyota Industries Report 20097

Summary of Business Activities

Materials Handling Equipment
The World’s Leading Materials Handling Supplier—
Providing Customers with Optimum Solutions

Toyota Industries’ Materials Handling Equipment Business engages in thedevelopment, production, sales and service of industrial vehicles suchas counterbalanced lift trucks with 0.5- to 43-ton load capacities and awide range of warehouse equipment such as systems for transportation,
storage and retrieval of goods.
As a leading manufacturer of lift trucks and other materials handlingequipment with expertise in logistics throughout the world, we offer a
product range that includes the TOYOTA, BT, RAYMOND and CESAB
brands under the organization of Toyota Material Handling Group (TMHG)
as well as AICHI, a top brand in Japan for aerial work platforms.
Toyota Industries provides complete materials handling solutions,featuring high-quality products and services, cutting-edge technologies
and extensive materials handling know-how through our global sales
and service network. In doing so, we also remain keenly responsive to avariety of customer needs for logistics.

Toyota Material Handling Group
Toyota has a solid position for
counterbalanced lift trucks inJapan and around the world.
In March 2008, Toyota marked
an important milestone,
reaching cumulative productionof its 2,000,000th lift truck.
For warehouse trucks, BT isparticularly strong in the European
market and Raymond is in aleading position in North America.
TMHG will continue to carryout aggressive sales promotion
activities by leveraging eachbrand’s strong presence inrespective regions.

Lift Truck Sales(Thousand units)

250

Responding to Changes in Business
Environment
The slowdown in the U.S. economy continued during 2008. Markets thatpeaked in 2008, such as Europe, Asia and Oceania, began to contractfrom the second half, a trend that continued through the end of the fiscal
year. In this challenging market environment, TMHG experienced lower
unit sales in all markets in fiscal 2009.
While the materials handling equipment market is expected to remainchallenging in 2009, we will continue to promote streamlining of ourstructure, including manufacturing equipment and personnel, in line withthe level of sales and production.
TMHG is implementing various activities and measures to growsynergies in the group. Examples include joint product development,
development of our own key components, strengthening of our
production structure through the horizontal deployment of the Toyota
Production System (TPS) throughout the entire group, integration of sales
structures and the mutual supply of products. These efforts are steadily
showing results across a wide range of fields.
Amid the difficult business environment, we will strengthen ourmanagement platform and lay the foundation for further growth byaccelerating initiatives to maximize synergies.

200

150

100

50

0
(FY)

05

06

07

08

09

Organizational Chart of Toyota Material Handling Group

TMHG
Management Committee (Global Strategy, Optimum Resource Allocation, Global Management Control)

TMHJ
TMHJ
Toyota Material Handling
Japan

8

Toyota Industries Report 2009

TMHNA

TMHE

TMHI

TMHCN

Toyota Material HandlingNorth America

Toyota Material Handling
EuropeToyota Material HandlingInternational

Toyota Material Handling
China

Japanese Market

North American Market

No. 1 Market Share in Lift Truck Sales

Leveraging Brand Strengths to Expand BusinessIn 2008, difficult conditions continued in the lift truck market in Japandue to the impact of the global economic downturn triggered by the U.S.
subprime mortgage crisis. Under these circumstances, unit sales by
Toyota Material Handling Japan (TMHJ) in fiscal 2009 declined about 19%
from the previous fiscal year to around 32,000 units.
TMHJ is committed to providing customers with top-quality, appealing
products and engages in aggressive sales and service activities to ensure
customer satisfaction after product purchases. Thanks to these initiatives,
we maintained a 41.6% share of the Japanese market, marking the 43rdconsecutive year that TMHJ has maintained the top-ranked position*1 in
the Japanese lift truck industry despite the severe business environment.

The North American market continued to decline due to the slowdown
in the U.S. economy. Toyota Material Handling North America (TMHNA)
reported sales of around 47,000 units corresponding to a roughly 18%
decrease in fiscal 2009.
TMHNA offers material handling solutions through a 2-channel,
2-brand strategy. The TOYOTA brand offers a broad range of electric andinternal-combustion lift trucks. The RAYMOND brand is positioned tofocus more on electric lift trucks for warehousing and distribution. Bothbrands have a demonstrated track record of performance and reliability.
Despite a decline in the market, Toyota grew its market share andremained the leading supplier of lift trucks for the seventh consecutive
year*2. Raymond also gained market share in the warehouse truck market
by having focused on its solutions-based product offering. Combined,
the TOYOTA and RAYMOND brands have the largest market presence inNorth America.

*1: Surveys by Japan Industrial Vehicles Association and Toyota Industries Corporation, 2008

Releasing New Products with Excellent Environmental and
Safety Features
In 2008, there was growing public interest in energy conservation andenvironmental issues spurred by soaring crude
oil prices and the start of the first commitment
period for reducing greenhouse gas emissions
under the Kyoto Protocol. With sales of electric
lift trucks now surpassing those for internalcombustion lift trucks, TMHJ worked tostrengthen the appeal of its electric lift trucks by
GENEO-Bmaking minor model changes to the GENEO-B
AC-powered electric counterbalanced lift truckin April 2008 and to the GENEO-R AC-powered
electric reach truck in July 2008.
Along with products that contributeto environmental protection and energy
conservation, TMHJ also introduced productsthat contribute to safety. In January 2009, a rear
GENEO-Rdetection system was launched as an optional
device for lift trucks to support the detection of persons working behind
lift trucks during operation. Toyota Industries continues to contribute to
the realization of safety at logistics sites.

Strengthening Product Appeal for Electric Lift Trucks andOther Products
The difficult conditions facing the lift truck market are expected tocontinue in 2009. Under these circumstances, TMHJ expects the
proportion of sales accounted for by electric lift trucks to trend upward
due to rising interest in energy conservation and environmental concerns
as well as robust business in foods, pharmaceuticals and other industries
that require clean working environments. In addressing these trends,
TMHJ will make unprecedented efforts to strengthen its development ofelectric lift trucks and introduce highly competitive products.
Toyota Industries is preparing for the December 2009 launch of a
new internal-combustion hybrid lift truck developed by combining a diesel
engine, electric motor and battery to achieve a sharp improvement in fuelefficiency.
Based on the watchwords “environment and safety,” TMHJ willcontinue providing optimal materials handling solutions for customers
through an extensive product lineup that encompasses lift trucks,
warehouse trucks, automated storage and retrieval systems, automatic
guided vehicles and aerial work platforms combined with an abundanceof know-how and enhanced service structure.

*2: Survey by Crist Information & Research, LLC, 2008

Introducing Reach Trucks and Other New Products
In fiscal 2009, TMHNA introduced multiple products to the North
American market. Toyota unveiled its new line of
8-Series AC reach trucks, including a single reachmodel in 3,500- and 4,500-pound load capacities
and a 3,000-pound capacity double reach model.
Toyota also introduced increased capacity (22,000to 35,000-pound) internal-combustion pneumatic
models. Raymond introduced its sit/stand Model
8-Series
7600 Reach-Fork® and a new Model 9600®
Swing-Reach , which features AC technology
and regenerative lowering for automatic battery
recharging. Raymond also launched a Model
8900 pallet truck to enhance its product lineup.
To expand its offering beyond lift trucks, Raymondlaunched its upgraded iWarehouse™ fleet
9600 Swing-Reach®
optimization system, which featured a new data
analysis and reporting via Web portal.

Pursuing Further Efficiency in Logistics
The North American market is expected to be extremely challenging in2009. Toyota will focus on the development and sales of electric models,
for which market share is growing, and other products and continuing
to provide the industry’s leading customer satisfaction, quality products
and support. Raymond will continue to offer solutions-based innovations
that increase customer efficiencies and improve operations. In this way,
TMHNA will continuously search for ways to improve materials handlingefficiency and operations to assist customers.

Toyota Industries Report 20099

Summary of Business Activities

Materials Handling Equipment
European Market

International and Chinese Markets

Integrating the Sales Network for TOYOTA and BT Brands

Engaging in Business in Emerging Countries

During the first half of 2008, the lift truck market in Europe continued togrow, reaching a new peak before declining sharply in the second half ofthe year in the wake of the global economic downturn. Toyota Material
Handling Europe (TMHE) reported unit sales of around 62,000 units for
the TOYOTA, BT and CESAB brands in fiscal 2009, representing a roughly
16% decline compared with the previous fiscal year.
Since starting its operations in 2006, TMHE has built a neworganization integrating Toyota and BT businesses in most European
markets. With its comprehensive offering of Toyota counterbalanced lift
trucks and BT warehouse trucks, service and added-value solutions,
TMHE is now able to respond to a wide variety of customer requirements.

Toyota Material Handling International (TMHI) covers the markets of Asia,
the Middle East, Oceania, Latin America and Africa, while Toyota Material
Handling China (TMHCN) covers the Chinese market. These markets havelong experienced increasing demand for industrial vehicles supported by
global economic expansion. However, due to the negative impact fromthe global economic decline that began to spread throughout the worldin the second half of fiscal 2009, unit sales of industrial vehicles in theInternational and Chinese markets dropped about 16% to around 28,000
units.

Reinforcing Structures for Production, Sales and Service in
Respective Markets
Promoting a Switchover to New Models
TMHE has completed a two-year program to enhance its lineup withnew products manufactured at its factories in France, Sweden and Italy
that address 70% of the European market potential. Initiatives kicked off
with the launch in fiscal 2008 of the Toyota Tonero. In fiscal 2009, TMHE
launched five new TOYOTA, BT and CESAB product series.
The new Toyota Traigo 48 range of 3-wheel and 4-wheel electriccounterbalanced lift trucks addresses a key market
sector with 10 compact models.
The new BT Levio powered pallet trucks andnew BT Staxio pedestrian powered stackers address
Europe’s largest industrial truck market segment interms of units sold. The new BT Reflex reach truck
continues BT’s tradition of reach truck excellence with
Levio
five load capacities.
CESAB also launched the new Eco/P hightonnage electric counterbalanced lift truck, with load
capacities of 6.0, 7.0 and 8.5 tons.
The Toyota Traigo 48 and CESAB Eco/P are
manufactured in Italy, and the BT Levio, BT Staxio
and BT Reflex are manufactured in Sweden.
Sales of TMHE’s new products have beenencouraging in today’s difficult market environment.
Traigo 48
The Toyota Traigo 48 and BT Levio both received
the prestigious iF Product Design Award 2009 for design excellence.
TMHE also rolled out a tailored fleet management system called
Toyota I_Site, which gives companies the information they need to cut
costs and optimize their fleets.

Delivering the Support Customers NeedIn 2009, the European business climate is expected to remain highly
challenging. In this situation, TMHE’s new network structure brings it
closer to customers with the complete product lineup supported byflexible services and solutions that add value in today’s market. With
short- and long-term rental, certified used trucks and fleet management
backed by a comprehensive service organization, TMHE is positioned asa leading full-service materials handling supplier.

10

Toyota Industries Report 2009

TMHI has continued to develop its sales and service capabilities in many
international markets, especially Brazil, India and Australia. TMHI has
further strengthened its ability to offer a competitive product range tocustomers by launching the BT Levio powered pallet truck, BT Staxio
pedestrian powered stacker and BT Reflex reach truck.
In Brazil, TMHI established a unified sales and service organizationthat has bolstered operations and provides customers with total support
for the full range of products available in the market. This fortified position
will enable TMHI to weather the current market slump and emerge
stronger.
In India, the ability to provide comprehensive customer support
via a single organization was achieved by merging all sales and service
operations. At the CeMAT India international trade fair for materials
handling and logistics held in August 2008, TMHI exhibited new products
and attracted a great deal of interest from various types of customers.
In Australia, TMHI focused resources and started to introduce a newcompany structure that will improve operations and enhance customer
value. Ongoing improvement of operations and strengthening ofcompetitiveness will be pursued to meet customers’ expectations toward
TMHI as a strong and reliable business partner.
By implementing various measures to strengthen its presence in
the International market, TMHI will build a strong foundation to ensuresustainable growth.
China has expanded to become the world’s second largest market
for lift trucks after the United States, and its importance is rising not
only as a production base but also as a market for sales. To respond to
customers’ needs in this market, Toyota Material Handling (Shanghai)Co., Ltd., a sales company of TMHCN, strengthened its product lineup
to encompass the BT and RAYMOND brands in addition to the TOYOTA
brand, while strengthening its sales bases. In production, Toyota Industry(Kunshan) Co., Ltd. expanded local procurement and devoted efforts to
reducing lead times.

Making Inroads into Untapped Markets
In 2009, the International and Chinese markets are expected to remain
sluggish. In response, we will actively advance into untapped markets andengage in initiatives to enhance convenience for customers in terms ofsales and services.

Topics

TMHNA: Exhibited at ProMat 2009
TMHNA exhibited new TOYOTA- and RAYMOND-brand products
at ProMat 2009, North America’s premier materials handling andlogistics trade show held in Chicago in January 2009.
Toyota’s exhibit featured the North American debut of the Toyota
8-Series AC Reach Truck as well as the Toyota Hybrid Concept Lift
Truck. The concept truck was well received and demonstrated thecompany’s global charter to develop innovative technologies andproducts that are environmentally responsible and economically
viable.
Raymond showcased its new marketing campaign featuring
custom solutions, with the latest updates on special services suchas Leasing and Rental, Service and Support, and Raymond parts.
Also presented were Raymond’s latest advances in its iWarehouse™
fleet optimization system along with its innovative new products, theSit/Stand Reach-Fork® and new energy-efficient Swing-Reach®.

TOYOTA boothPreparing to Launch Internal-Combustion
Hybrid Lift Trucks
In December 2009, Toyota Industries will launch sales in Japan of the
3.5-ton GENEO-HYBRID, a hybrid lift truck that combines a diesel
engine, electric motor and battery.
For the GENEO-HYBRID, Toyota Industries independently
developed a hybrid system matched to the characteristics of lift
trucks by utilizing Toyota Motor Corporation’s hybrid technologies.
This enables the GENEO-HYBRID to maintain the same work
performance as current 3.5-ton diesel engine lift trucks, while
reducing CO2 emissions and fuel consumption by approximately
50%* and thereby realizing world top-class fuel performance.
Toyota Industries will continue to lead in developing andcommercializing environmentally sound products that contribute toenergy conservation and help reduce environmental impact.
* Measurement values by Toyota Industries using Japan Industrial Standards (JIS)work cycle

RAYMOND booth

GENEO-HYBRID
Note: The external appearance of the actual productsold could differ from that shown in the photo.

TMHE: Exhibited at CeMAT 2008

TMHI: Held Distributor ConferenceWith the theme “stronger together,” TMHE unveiled its new, integratedorganization as a reliable business partner with a comprehensive
materials handling lineup at CeMAT 2008, which was held in Hanover,Germany, in May 2008.
For the first time at a leading European fair, TOYOTA and BT
products shared the same stage, together with TMHE services andsolutions including Toyota I_Site fleet management system. CESAB
displayed a range of products including its new Eco/P high-tonnage
electric counterbalanced lift truck.
The Toyota Hybrid Concept Lift Truck was presented for the
first time in Europe and received keen interest from customers andjournalists.

Distributors from over 40 countries attended the TMHI Distributor
Conference 2008 last October in Sweden. The agenda-packed event
included product demonstrations, workshops and a factory tour.
In terms of product highlights, the new BT Reflex reach truck
was launched, and the BT Levio powered pallet truck and BT Staxio
pedestrian powered stacker were re-launched for TMHI markets.
Participants learned about functions and improvements of the
new products and had the opportunity to try them out for future sales
activities.

Toyota Hybrid Concept Lift Truck

TMHE boothToyota Industries Report 200911

Summary of Business Activities

VehicleTop-Level QCD among Toyota Group Automobile
Body Manufacturers

Toyota Industries assembles
Vehicle Production
compact and midsize(Thousand units)
400
automobiles of Toyota Motor
Corporation (TMC). We currently
manufacture the Vitz (Yaris
300
outside Japan), the RAV4
for overseas markets and the200Mark X ZiO for the Japanesemarket.
Toyota Industries’ Vehicle
100
Business boasts top-level quality,
cost and delivery (QCD) among0
automobile body manufacturers
05
06
07
08
09
(FY)
in the Toyota Group. Other
strengths include a flexible production structure such as highly acclaimed
production preparation in a short period of time.

Further Raising QCD
To the present, Toyota Industries strives to enhance production efficiency
and quality improvements based on the Toyota Production System(TPS). Consequently, we have received the Superior Quality PerformanceAward numerous times from TMC in recognition of our outstandingachievements. We will further raise QCD by continuing to carry out
improvement activities together with all departments of the Vehicle
Business, including non-manufacturing departments.

VehiclesParticipating in the Planning and Developmentof Mark X ZiO Special-Edition Models
While assembling the Mark X ZiO, Toyota Industries also participated in
the planning and development of two special-edition Mark X ZiO models:the Mark X ZiO Black Pearl Limited (August 2008 to January 2009) andthe Mark X ZiO Aerial (from February 2009).
The Mark X ZiO Black Pearl Limited’s entire exterior is adorned withblack pearl-tone decorative patterns for an external appearance thatradiates a mysterious, sophisticated aura. Meanwhile, the Mark X ZiOAerial projects a sporty image by incorporating specialized aeroparts
such as the front grille, front bumper and side mudguards in addition tocustomized seat upholstery.

Vitz (Yaris outside Japan)

Initiatives for Realizing Lightweight
Car Bodies
Toyota Industries is progressing with the development of plastic glazing,
which is highly effective in helping to realize lightweight vehicles.
Plastic glazing uses the raw material polycarbonate, which has
approximately half the specific gravity of glass. The use of plastic glazing
for a panorama roof enables the weight of a vehicle to be reduced byapproximately 9kg compared with when using glass. Lowering theweight of automobile bodies in this manner provides a host of benefits
that include reducing CO2 and other substances of concern that place aload on the environment. Moreover, realizing lighter weights for the upper
part of car bodies enables a low center of gravity and enhanced driving
performance. Additionally, developing plastic glazing, which possesses avariety of potentials, allows for new styling proposals not possible whenusing the traditional combination of glass and steel sheet, a benefit that
we expect will make an important contribution to the creation of futuregeneration vehicles.

12

Toyota Industries Report 2009

RAV4

Mark X ZiO (Aerial)Summary of Business Activities

EngineBusiness Development Centered on the Two Pillarsof Clean Diesel Engines and Gasoline Engines

Toyota Industries’ Engine
Engine Production
Business manufactures both(Thousand units)
600
diesel and gasoline engines. Of
particular note, in diesel engines
500
we are collaborating with Toyota
Motor Corporation (TMC) in the400
development of fuel-efficient,300
clean diesel engines, with our
involvement spanning all phases
200of this process from planningand development to production.
100
In gasoline engines, we operate0
a flexible production structure
05
06
07
08
(FY)
that deploys automatic guided
vehicles to respond quickly tochanges in model types and production volumes.

Commencing Production of MZ Gasoline
Engines
Toyota Industries began producing 3.3-liter, V6 MZ gasoline engines
for TMC in December 2008. These engines are being installed in suchmodels as the Highlander Hybrid and the Harrier Hybrid.

Starting Production of Materials Handling
Equipment Engines that Comply with Act on
Regulation, Etc. of Emissions from Non-Road
Special Motor Vehicles
09

AD Diesel Engines—World’s First to be
Certified as Euro 5 Compliant
In November 2008, Toyota Industries commenced production of 2.0- and2.2-liter, in-line 4-cylinder AD clean diesel engines developed jointly with
TMC.
These engines clear Euro 5 emission standards, the European
emission standards that set the acceptable limits for NOx emissions at
0.18g/km and at 0.005g/km for particulate matter. AD diesel engines havebecome the world’s first to be certified as Euro 5 compliant.
Besides achieving cleaner emissions thanks to an approximately 10%
reduction in CO2 emissions compared with the previous model, these
AD diesel engines also realize a sharp rise in fuel efficiency in addition tooffering enhanced driving performance features such as improved lowspeed torque.
Toyota Industries’ AD diesel engines are fitted in the Corolla andRAV4 for the European market.

In August 2008, we began producing the 1DZ-III diesel engines developedby Toyota Industries for the GENEO internal-combustion counterbalanced
lift truck and for skid steer loaders. This new diesel engine complies withJapan’s Act on Regulation, Etc. of Emissions from Non-Road Special
Motor Vehicles.
This is just one example illustrating that Toyota Industries significantly
enhances the appeal of its engines by developing models matched to thecharacteristics of each type of our materials handling equipment.

Expanding Our Role as an Engine
Manufacturer
As one choice for powering vehicles to realize a low-carbon society, diesel
engines are enjoying increasing acclaim thanks to their enhanced fueleconomy compared with gasoline engines as well as lower emissions.
Through developing and producing diesel engines, together with the
production of gasoline and industrial-use engines, Toyota Industries will
strive to expand its role as an engine manufacturer.

Engines

Production of AR Gasoline Engines Begins
In December 2008, Toyota Industries began producing 2.5-liter, in-line
4-cylinder AR gasoline engines for TMC. AR engines are next-generationengines that are outstanding in terms of high performance, fuel efficiency
and low emissions.
In gasoline engines, Toyota Industries boasts notable strengths incarrying out highly efficient production of multiple types of engines in small
lots on the same production line. We have now broadened the scopeof our Engine Business by starting production of AR gasoline engines
fitted in a variety of mass-market vehicles such as the RAV4 for overseas
markets.

AD diesel engine

1DZ-Ⅲ diesel engine

AR gasoline engine

MZ gasoline engine

Toyota Industries Report 200913

Summary of Business Activities

Car Air-Conditioning Compressor
Outstanding Technologies and Superb Quality Have Earned
Us the Highest Level of Trust from Automakers Worldwide

Toyota Industries’ car airCompressor Sales
conditioning compressors achieve(Million units)
25
world-class quality in termsof reliability at high operating
20
speeds and quiet operation in
addition to such environmental15
related performance features asfuel efficiency, compactness and
10weight reduction.
We offer a wide range
5of variable-displacement
compressors that suitably control
0cooling in accordance with the
05
06
07
08
09
(FY)
temperatures inside and outside
the vehicle and the state of thevehicle’s engine in addition to our line of compact, lightweight fixeddisplacement compressors. Both types of compressors have been
extensively adopted by leading-name Japanese and overseas automakers
and command the global No. 1* share in terms of sales volume.

Toyota Industries has already integrated inverters into the ES27
compressor fitted in the Lexus RX450h and into the ES34 compressor
fitted in the Lexus LS600h. In this manner, Toyota Industries is expanding
its series of electric compressors ranging from compact to large-classvehicles, thereby offering a line of electric compressors that can be fitted
in a diverse range of vehicles.
All of the aforementioned compressors are fully electrically driven andintegrate a built-in motor that drives the compressor. Therefore, thesecompressors allow the air conditioner to be operated even when the
hybrid vehicle’s engine is stopped, thus realizing an ideal balance between
fuel efficiency and comfort.

An Industry-Leading Company
Toyota Industries’ Car Air-Conditioning Compressor Business hasremained the industry leader by continually deploying its unique
technological capabilities to develop new products ahead of competitors.
While striving to raise quality, we will maintain our commitment todeveloping new car air-conditioning compressors that respond quickly
and accurately to the needs of customers worldwide.

*Survey by Toyota Industries Corporation

Responding to Changes in Business
Environment
In response to the decrease in the production volume of car airconditioning compressors accompanied by the automobile market
contraction, we are streamlining the structure, including manufacturing
equipment and personnel, at respective manufacturing sites around theworld in an effort to improve profitability.
By utilizing internally developed and fabricated production equipment,
we strive to accumulate technology and know-how while at the same timecarrying out high-quality, efficient manufacturing operations. This versatileequipment also enables efficient capital investment.
In product development, we have been involved in the developmentof car air-conditioning compressors not only for internal-combustion
vehicles but also for electric vehicles from an early stage. In particular, ourelectric compressors for hybrid vehicles, for which demand is expected
to grow substantially, have already been installed in a lineup of TOYOTA
hybrid vehicles, including the Prius.
We will further strengthen our product appeal and strive to continue
leading the industry in the field of electric compressors as well.

Development of the ES14 Electric Compressor
for the Latest Prius
Toyota Industries developed the ES14 electric car air-conditioning
compressor for the new Prius launched in May 2009. By realizing
approximately 20% reductions in both cubic volume and weight, the
new ES14 is more compact and lighter than the predecessor ES18
compressor.
As another noteworthy technical achievement, we have succeeded
in integrating an inverter that previously required installation in a separate
location into a car air-conditioning compressor, thus enabling a dramaticenhancement in the mountability of compressors. This inverter wasdeveloped by Toyota Industries’ Electronics Division.

Compressors

ES14 electric compressor

ES27 electric compressor(Scroll type)(Scroll type)

ES34 electric compressor

10S17 compressor(Scroll type)(Swash-plate fixed-displacement type)

7SBU16 compressor

7SEU17 compressor(Swash-plate internally controlled
variable-displacement type)(Swash-plate externally controlled, clutchlessvariable-displacement type)

Note: Photos of cross sections of products are used.

14

Toyota Industries Report 2009

Summary of Business Activities

Car Electronics
Components and Devices that Support Ongoing
Advances in Hybrid Vehicles

Toyota Industries develops and manufactures an assortment ofelectronic components and devices for automobiles. Our development
and manufacturing capabilities have been cultivated through our powerelectronics circuit technologies and electric drive system.

Development of a PCU Cooling Device
for the New Prius
Based on power electronics technology applied in the developmentof electric lift trucks, we undertook in-house production of electronic
components from each business division and have accumulated a vastarray of technologies while carrying out development and manufacture of
power source devices for hybrid vehicles.
Previously, our development activities in car electronics have been
focused on such auxiliary power source devices as DC-DC converters.
Recently, however, we developed a cooling device for the power control
unit (PCU), which is a core component for hybrid vehicles and is installedin the new Prius launched in May 2009.
The PCU raises the voltage of the hybrid car battery and converts
the direct current into an alternating current using an inverter to drive
the motor of the hybrid vehicle. Previously, controlling the heat of thepower semiconductor devices that compose the PCU was a major
technical issue. By adopting a direct-cooling method utilizing our inhouse technologies, however, Toyota Industries supported the realizationof a compact PCU that lowers the cooling device’s thermal resistanceand significantly improves cooling performance. This miniaturization
technology has won high acclaim, and in recognition of this achievement,
Toyota Industries was presented with the fiscal 2009 Project Award(Technology Category) from Toyota Motor Corporation.
In addition to this cooling device, we manufacture reactors that raisethe voltage of batteries and cases that store component parts.

DC-DC Converter Developed
for the Latest Prius
We have developed a DC-DC converter for the latest Prius launched in
May 2009. This new converter converts the high-voltage direct currentof the main battery to a lower voltage to charge the auxiliary battery andsupply power to the lights, wipers, horn and other in-car devices. Afterour converters were installed in the first-generation Prius, we have steadily
expanded our series of DC-DC converters, which were subsequently
chosen for the Camry Hybrid and the second-generation and new thirdgeneration Prius.

Newly Developed DC-DC Converter for ElectricPower Steering on the Lexus RX Hybrid
The needs for further fuel efficiency have spurred an ongoing transition
from hydraulic power steering to electric power steering in vehicles.
In responding to this trend, Toyota Industries has developed andmanufactured a DC-DC converter, which converts the voltage of thebattery to the voltage of power steering. This DC-DC converter is installedin the Toyota Harrier, Lexus LS460 and the Lexus LS600h. Most recently,
our new high-power DC-DC converter has been installed in the Lexus
RX450h introduced in April 2009.

100W DC-AC Inverter Developed
for the New Alphard and Other Vehicles
Toyota Industries has developed a new 100W DC-AC inverter for vehicles
including the new Alphard, which was released in May 2008. This inverter
converts the 12V direct current of the auxiliary battery into a 100V
alternating current and enables the use of maximum 100W home electric
appliances in automobiles. Compared with previous products, this new
inverter is approximately 36% more compact and 33% more lightweight.
Moreover, the inverter significantly reduces the use of substances ofconcern.
Our lineup of DC-AC inverters ranges from 100W to 1,500W types,
which are installed in a wide variety of vehicles.

Toward the Realization of a Low-Carbon
Society
As we focus on further advances in hybrid vehicles, we are carrying out
continuous quality-improvement activities, while cooperating with otherbusiness divisions to create technologies for compact, more lightweight
and low-cost components and devices. To realize a low-carbon society,
we are developing products for electric vehicles and plug-in hybrid
vehicles, which can be recharged using household power sources. In
addition, we are making efforts to build a recharging system including an
infrastructure.

Car Electronics Devices

PCU direct cooling device
for the new Prius

DC-DC converter
for the new Prius

DC-DC converter for the
new Lexus RX Hybrid

100W DC-AC inverter

Toyota Industries Report 200915

Summary of Business Activities

Logistics
Proposing Efficient Logistics Services Utilizing Our
Know-How Cultivated in Manufacturing

Toyota Industries’ Logistics Business is composed of three business pillars:planning, design and operation of distribution centers, high value-added
services and distribution of automotive parts. High value-added services areprovided through two subsidiaries, Asahi Security Co., Ltd. (Asahi Security)and Wanbishi Archives Co., Ltd. (Wanbishi Archives), while the distributionof automotive parts is offered via the Taikoh Transportation Group.
Toyota Industries foresees a rising need for efficient, high-quality
logistics and will strive to meet the expectations of numerous customers bymaking proposals for logistics services that eliminate waste based on the
Toyota Production System (TPS).

Planning, Design and Operation of Distribution
Centers
Serving as the core of these operations, the Advanced Logistics Division
and Advanced Logistics Solutions Co., Ltd. (ALSO), a wholly owned
subsidiary, make proposals for logistics plans and operate distribution
centers for corporate customers. To the present, we have provided
services to customers in a variety of sectors, including pharmaceuticalcompanies, food wholesalers and supermarkets. We make every effort
to go beyond merely providing consigned logistics services. Instead, wework to increase the overall efficiency of logistics by identifying and solving
new problems from customers’ viewpoints as we implement logistics
solutions.

High Value-Added Services
Asahi Security meets the needs of customers in the retail and service
sectors by engaging in the equipment security business and providing
cash management outsourcing services such as cash collection
and delivery and cash proceeds management services. As anotherindispensable, high value-added service, Wanbishi Archives provides
sophisticated risk-related services that encompass storing, managing,collecting, delivering and confidentially carrying out data destruction forgovernment agencies and companies and providing data backup in theevent of disasters.

sorted onto pallets, thereby assuring that automakers are supplied with“what is needed, when it is needed, and in the amount needed.” Throughcooperation with Toyota Motor Corporation, Taikoh Transportation
pioneered the completion of the industry’s first automotive parts logistics
system consisting of relay (intermediate) logistic bases, which supports
the efficient production of automakers through logistics.

Helping Reduce Customers’ Total Logistics
Costs
Toyota Industries will continue responding to customer needs for
reducing total logistics costs and improving logistics by drawing on
its extensive expertise gained through the manufacture and sale of lift
trucks, automated storage and retrieval systems and other materials
handling equipment as well as by utilizing our TPS know-how cultivated at
manufacturing sites.

TopicsExpanding the Use of Rail Transport ofCompleted Lift Trucks
In 2002, Toyota Industries became the first lift truck manufacturer
to use rail transport for shipping completed lift trucks. To thepresent, we have shifted from sea to rail transport for our under2-ton, small lift trucks. This shift gained further momentum in
December 2008 when we commenced rail transport for shipping
2- to 3-ton, mid-sized lift trucks deploying 31-foot containers, as
we made strides toward further reducing the environmental loadfrom our logistics and enhancing logistics efficiency.
Our switchover to rail transport yields a host of benefits,
chief among these, an approximately 40% reduction in CO2 perlift truck shipped as well as a maximum 8-day reduction in leadtimes.
Looking ahead, we intend to further expand our use of railtransport and work to reduce CO2 emissions and delivery times.

Asahi Security Begins Operating theShin-Misato Center

Asahi Security’s cash collection
and delivery and cash proceeds
management services

Wanbishi Archives’ data storage,
management, collection anddelivery services

Distribution ofAutomotive Parts
The Taikoh Transportation Group
undertakes consigned transportation
for numerous automotive parts
manufacturers. These parts are collectedaccording to each delivery destination and16

Toyota Industries Report 2009

Taikoh Transportation’s landtransportation services

In May 2009, Asahi Security began operating its new Shin-Misato
Center in Saitama Prefecture as a center for its mainstay
business of cash collection and delivery services for the retailindustry.
The Kanto area, which includes Tokyo, accounts forapproximately 50% of sales generated in our cash collection
and delivery services for the retail industry, and we foresee highgrowth rates for these services in this area. Easily accessible
from both the Joban and Tohoku expressways, the Shin-Misato
Center will allow us to raise our level of customer services in thegrowing northern Kanto market area, and we anticipate this will
make an important contribution to our future business results.

Summary of Business Activities

Textile Machinery
Contributing to the Global Textile Industry
through Our Technologies and Ingenuity

With a history dating back to the
Air-Jet Loom Sales
invention of an automatic loom
(Thousand units)
12(weaving machine) by Toyota
Industries founder Sakichi Toyoda,
10
the Textile Machinery Business is aworld leader in the textile industry
8
backed by an integrated structure
6
that encompasses development,
production, sales and service. Toyota
4
Industries has consistently drawn on
its technological capabilities honed
2
throughout its long history and its
0tireless application of ingenuity to
05
06
07
08
09
(FY)
offer textile machinery that responds
to the needs of customers. We operate a global service network
consisting of 11 bases and an outstanding after-sales service structure toassist customers worldwide in raising productivity and quality.

Supported by a Wide-Ranging Product Lineup
and a Global Supply Structure
Our textile machinery can be generally divided into two categories,
namely, spinning machinery that spins bundles of fibers from cotton into
yarns and weaving machinery for weaving yarns into fabric.
The Spinning Machinery Business meets a broad range of customer
needs by offering an extensive lineup of spinning machinery, including ring
spinning frames and roving frames capable of both providing superior
productivity and spinning high-quality yarns.
Overseas, Kirloskar Toyoda Textile Machinery Pvt. Ltd. (KTTM), oursubsidiary in India, manufactures and supplies ring spinning frames,
primarily for the local market, and serves as an important part of ourglobal product supply structure. In fiscal 2009, we began sharing with
KTTM a new technology developed by the Kariya Plant for spinning highquality yarns with minimal fuzz. The sharing of this technology significantly
enhances our ability to respond to the needs of the local market for highgrade yarns.
The Weaving Machinery Business has commanded the world’s No. 1*
share in unit sales for its mainstay air-jet looms for 11 consecutive
years since 1997. However, in fiscal 2009 unit sales of air-jet looms
experienced an unavoidable sharp decline due to the severe impact of
the “once-in-a-century” global recession. Particularly noteworthy, sales
in China, the largest market for these looms, were adversely affectedby a combination of factors that included a decline in exports of textile
products to the United States in addition to the Chinese government’s
revision of the tax system and credit-tightening policies. Nonetheless,there are hopes that tax refunds implemented at the beginning of 2009,
combined with economic-stimulus measures, will spark a quick recovery
for air-jet looms in China.

population. In response, we will work to raise the productivity andoperability of our textile machinery. For air-jet looms, in particular, we will
pursue technologies for weaving high value-added fabrics while raising
environmental-related performance such as energy-saving and low-noise
operation.
On the sales front, in addition to focusing on China, we will actively
cultivate new markets such as Russia and central Asian countries. We will
also enhance our service capabilities by strengthening training for local
staff at service centers in China, Indonesia and other countries to offer
highly focused after-sales service while also carrying out Internet salesof spare parts. By taking these measures, we will respond to customer
demands and aim for the global No. 1 position in textile machinery.

TopicsIn 2008, Toyota Industries exhibited its textile machinery atinternational trade fairs held in China and India, the world’s twolargest markets for this machinery. Toyota Industries’ booths
featured the largest number of air-jet looms and other products
on display at both trade fairs and appealed our cutting-edge
technologies to numerous visitors. Demonstrations of producing
high value-added fabrics such as wool and Jacquard design
towels as well as high-quality yarn attracted visitors from aroundthe world.

ITMA ASIA + CITME 2008
held in July in Shanghai, China

INDIA ITME 2008
held in November in Bangalore, India

Spinning Machinery

RX240 series
ring spinning frame

FL200 roving frame

Weaving Machinery*Statistics from the International Textile Manufacturers Federation (ITMF)

Aiming to Be Global No. 1 in Textile Machinery
Toyota Industries expects that the volume of textile consumption will
increase over the medium and long terms in line with a rise in the world’s

JAT710 air-jet loom

Toyota Industries Report 200917