FY2014 Financial Results

May 8, 2014

Ⅰ．Financial Summary

1/ 34

Financial Summary<FY2014>

1. Net sales increased by 24%, operating income increased by 40%
Net sales, operating income, ordinary income and net income marked a record high

2. Revised up an annual dividend to 85 JPY per share

3. Forecast 5% increase in net sales and 7% increase in operating
income for FY 2015

2/ 34

Performance <FY2014>(Billion yen)

FY2013

FY2014

Change1,615.2

2,007.8

392.6

24.3%

Operating income

77.0

107.6

30.6

39.7%

Ordinary income

86.8

138.1

51.3

59.1%

Net income

53.1

91.7

38.6

72.6%

Net income
per share\170.36\292.76\122.40

-

\55

\85

\30

-

Year-end

\30

\50

\20

-

Consolidated
payout ratio

32.3%

29.0%

-

-

Net sales

Dividends per share・Both net sales and income increased
・The Materials handling equipment segment made the most contribution to overall performance,
while the Vehicle and the Car air-conditioning compressor businesses and the Textile
machinery segment resulted in good performance
・Revised the distribution of a year-end dividend from ¥35 per share to ¥50 per share
3/ 34

Performance <FY2014>(Billion yen)

FY2013

FY2014

ChangeCapitalExpenditures

89.4

109.4

20.0

22.4%

Depreciation

57.9

64.1

6.2

10.7%

\/US$

\83

\100

\17

-

\/Euro

\107

\134

\27

-

・Capital expenditures increased mainly in the Car air-conditioning compressor business and the Materials
handling equipment segment
・Depreciation increased with an increase of capital expenditures

4/ 34

Performance <FY2014>(Billion yen)

As of March As of March
31, 2013
31, 2014

ChangeTotal assets

3,243.7

3,799.0

555.3

17.1%

Total net assets

1,524.9

1,829.3

304.4

20.0%

\4,719.66 \5,640.08\920.42-

Total net assets
per share
Equity ratio

45.4%

46.6%

-

-

Consolidated
subsidiaries

217

215

(2)

-

・Total assets and total net assets increased due to an increase in market value of investment securities

5/ 34

Segment Information <FY2014>
Net sales[Operating Income](Billion yen )Unit Sales

FY2013

FY2014

Vehicle

356.7

467.0

110.3

30.9%

Engine

216.7

202.5

(14.2)(6.5%)

Vitz (Yaris)

228.1

275.7

47.6

20.9%

RAV4

57.0
61.2
4.2
858.6 1,006.6
148.0[ 29.4] [ 35.1] [ 5.7]
596.4
809.2
212.8
[ 38.7] [ 58.0] [ 19.3]
93.0
95.3
2.3
[ 4.8][ 5.1] [ 0.3]
39.9
73.1
33.2
[ 0.5][ 5.5] [ 5.0]
27.2
23.4
(3.8)
[ 3.3][ 3.4] [ 0.1]
1,615.2 2,007.8
392.6[ 77.0] [ 107.6] [ 30.6]

7.3%
17.2%
35.7%

Car air-conditioning
compressor
Electoronics parts,
foundry and othres

Automoblie
Materials handlingequipment
Logistics
Textile machinery
Others
Total

Change2.5%(Thousand units)
FY2013

FY2014

ChangeMark X ZiO

155
112
2

129
198
1

(26)
86
(1)

Vehicle

269

328

59

DieselGasoline

452
214

383
243

(69)
29

Engine

666

626

(40)

83.2%

Car air-conditioning
compressor(13.6%)

Materials handlingequipment

185

199

14

Air-jet loom

4.6

9.3

4.7

24.3%

23,420 25,480 2,060

・The Vehicle business : Unit sales increased by favorable sales of new models of RAV4・The Car air-conditioning compressor business : Unit sales increased globally
・The Materials handling equipment segment : Made the most contribution to overall performance by an increase of unit sales and the inclusionof Cascade Corporation as a subsidiary
・The Textile Machinery segment : The sales of air-jet loom increased

6/ 34

Change in Ordinary Income
Year-on-year Comparison (FY2013 full year and FY2014 full year)(Billion yen)
Increase in sales volume
Cost reduction
Positive impact of exchange
rate fluctuations
Changes in the net amount of
non-operating income andnon-operating expenses
Increases total

21.2
16.1
21.7
20.7

79.7

Increase in labor cost
Increase in research anddevelopment expenses
Increase in depreciation
Increase in expenses andothers

(9.9)
(7.3)

Decreases total
Total Changes in Ordinary income(28.4)
51.3

(6.2)
(5.0)

・Net sales increased due mainly to an increase of unit sales of the Automobile and the Materials handlingequipment segments
・Labor cost and research and development expenses increased because of aggressive business initiatives

7/ 34

Performance <FY2015 Forecast>(Billion yen)

FY2014FY2015

2,007.8

2,100.0

92.2

4.6%

Operating income

107.6

115.0

7.4

6.8%

Ordinary income

138.1

148.0

9.9

7.1%

Net income

91.7

100.0

8.3

9.0%

Net income
per share\292.76\318.74\25.98

-

\85

\90

\5

-

Year-end

\50

\45

(\5)

-

Consolidated
payout ratio

29.0%

28.2%

-

-

Net sales

Dividends per share

Change8/ 34

Performance <FY2014 Forecast>(Billion yen)

FY2013

FY2014

ChangeCapitalExpenditures

109.4

115.0

5.6

5.0%

Depreciation

64.1

69.0

4.9

7.6%

\/US$

\100

\100

\0

－

\/Euro

\134

\135

\1

－

9/ 34

Segment Information <FY2015 Forecast>
Net sales[Operating Income](Billion yen)

FY2014
VehicleEngineCar air-conditioning compressor
Electoronics parts, foundry and othres

Automoblie
Materials handlingequipment
Logistics
Textile machinery
OthersTotal

FY2015

467.0
472.0
202.5
184.0
275.7
310.0
61.2
69.0
1,006.6 1,035.0[ 35.1]809.2
880.0[ 58.0]95.3
100.0[ 5.1]
73.1
60.0[ 5.5]
23.4
25.0[ 3.4]
2,007.8 2,100.0[ 107.6]

Change5.0(18.5)
34.3
7.8
28.4

1.1%
(9.2%)
12.4%
12.6%
2.8%

70.8

8.7%

4.7

4.9%

(13.1)(17.9%)

1.6

6.4%

92.2

4.6%

10/ 34

Segment Information <FY2015 Forecast>
Unit Sales(Thousand units)

FY2014FY2015

Mark X ZiO

129
198
1

117
208
-

(12)
10
(1)

Vehicle

328

325

(3)

DieselGasoline

383
243

348
212

(35)
(31)

Engine

626

560

(66)

Car air-conditioning
compressor

25,48030,0004,520

Materials handlingequipment

199

215

16

Air-jet loom

9.3

5.5

(3.8)

Vitz (Yaris)
RAV4

Change11/ 34

Change in Ordinary Income
Year-on-year Comparison (FY2014 full year and FY2015 full year forecast)(Billion yen)
Cost reduction
Increase in sales volume
Changes in the net amount of
non-operating income andnon-operating expenses

Increases total

17.0
14.0
2.5

Increase in labor cost
Increase in depreciation
Increase in raw material cost
Increase in expenses and others(10.0)
(4.9)
(2.0)
(6.7)

33.5

Decreases total
Total Changes in Ordinary income(23.6)
9.9

12/ 34

Ⅱ．Our Business Initiatives
toward medium term growth
Solution

Materials Handling
Equipment

Key Components

Car air- conditioning
Compressor
13/ 34

Solution / Materials Handling Equipment

Our initiatives toward the expansion of value chain

Development

Production

Global module structure

Highly efficient production
based on TPS

Promote productdevelopment
centered on 3E fields
・Improve environmental
performance of electric
lift trucks
・Meet tougher emission
regulations of internalcombustion lift trucks

Establish global
production andsupply structures

Increase local
procurement ratio

Sales

Service

Develop optimum sales
network in each region

Strengthen service capability

・Integrate distribution channels
Make distributors into
subsidiaries
・Strengthen sales network

Sales activities appealing
cost advantage of the whole
life cycle of the products
Consultation for logistics
improvement and solution
sales
Strengthen leasing
and rental business＜Developed countries＞
・Improve levels of customer
service by utilizing strengthened
sales and services network＜Emerging countries＞
・Deploy training programsfor service trainers
in each country
・Enhance service training
・Establish sales/service
companies

14/ 34

Solution / Materials Handling Equipment

Product development centered on 3Es
1． Electric lift truck
1) Improving environmental performance of electric lift trucks by cooperating with
the Electronics Division
0.9 to 1.8 ton Electric Reach Truck (GENEO-R) started production in Jul. 2012
0.7 to 1.5 ton High-pick Lift started production in Jan. 2013
 Differentiated our products in the field of software by improving the performanceof controllers, one of the functional components
 Realized longer continuous operation by 10%2) Developing products for Europe under the initiative of our local subsidiaries
2.0 to 3.5 ton Electric Lift Truck (Traigo 80) started production in Jul. 2013 in Italy Improved electricity efficiency by 20%
 Improving work efficiency by smooth accelerationand expanded front view
Traigo15/ 34

ソリューション／産業車両

Product development centered on 3Es
2． Internal-combustion lift truck
Meeting tougher exhaust emission regulations by cooperating with
the Engine division

Toyota 1KD
diesel engine

Equipped with our new 1KD diesel engine and turbocharger
3.5- to 8.0-ton
North
America

1.5- to 3.2-ton
North
America Meeting exhaust emissions regulations
without diesel particulate filter Improved fuel efficiency by up to 30%
Equipped with our new 1FS gas/gasoline engine
 Improved fuel efficiency by up to 20%

3.5- to 8.0-ton
Internal-combustion lift truck

Equipped with our new 1ZS diesel engine and turbocharger
 Meeting exhaust emissions regulations without diesel particulate filter Improved fuel efficiency by up to 25%⇒ Expanding production bases
16/ 34

Solution / Materials Handling Equipment

Establishing Global Production and Supply Structures
1．In developed countries, already established production bases
near our customers
2．To emerging countries, changed the supply bases fromJapan to the optimal bases sequentially since May 2010
To ALOMA* : supply from China
To Brazil: supply from the U.S.
To Russia : supply from Europe(Previously supplied from Japan）

Reducing delivery lead-time andtransportation cost*：Asia, Latin America, Oceania, Middle East, Africa

3．Established a new plant in Brazil
・Commenced production of 1.8- to 3.0-ton internal-combustion lift trucks with great market
needs in Oct. 2013
・Improving local procurement ratio

17/ 34

Solution / Materials Handling Equipment

Establishing Global Production and Supply Structures
4．Expanded production capabilities of a plant in China
・Completed to relocate and expand production capabilities
in Jun. 2013
・Expanding production models

5．Producing major functional components in optimum countries
Commenced production of motors for electric lift trucks in Vietnam in Apr. 2012
・Expanding BT electric lift trucks equipped with these motors in addition to Toyota
electric lift trucks
・Improving the appeal of products and price competitiveness by increasing thenumber of electric lift trucks equipped with these motors
18/ 34

Solution / Materials Handling Equipment

Upgrading Sales and Service Capabilities
1．Regional Initiatives
Implementing appropriate measures for each region, such as integration of
distribution channels and acquisition of the ownership of distributors

1) Europe(1) In Jan. 2013, completed to integrate separately operated sales channels for
TOYOTA- and BT-brand lift trucks throughout Europe(2) Established a sales company in Russia （Launched operation in Apr. 2014)
Upgrading sales capabilities in the large and growing Russian market

2) North America(1) Acquiring key dealerships based on the premise of meeting TICO’s anddistributor owners’ needs(2) Continuing to enhance response to key-account business together withTOYOTA- and Raymond-brand lift trucks
19/ 34

Solution / Materials Handling Equipment

Upgrading Sales and Service Capabilities
1．Regional Initiatives3) ALOMA and China(1) Appealing economic advantage of a lifecycle of products backed by excellent products
and service quality in sales expansion activities(2) Strengthening service capabilities by continuing service technician
training programs at Global Training Center

Global Training Center(3) Strengthening the efforts of upgrading sales and service capabilities in every region
・Providing training for sales and service trainers of our dealers
・Improving capabilities of persons in charge of maintenance・Creating tools for appealing service capabilities
20/ 34

Solution / Materials Handling Equipment

Upgrading Sales and Service Capabilities
1．Regional Initiatives
4) Japan(1) Strengthening sales expansion activities to new customers and large customers inevery industry sector and appealing optimal logistics efficiency combining hardware(material handling systems) and software (logistics improvements)(2) Further improving customer satisfaction by quick and fine support, utilizing our sales
and service networks throughout Japan(3) Held the TMHJ Service Skills Contest aimed at improving the level of service
of dealers

21/ 34

Solution / Materials Handling Equipment

Upgrading Sales and Service Capabilities
2．Strengthening leasing and rental business
In Jun. 2013, established leasing and rental business bases in Mexico and France

Expanding sales measures to meet customers’ needs
・ Responding to a wide range of customers’ needs by strengthening leasing and rental
business, together with sales and services
・ Serving customers in all regions by utilizing our global sales and service networks
・ increasing customer satisfaction throughout the product lifecycle, including stages ofpurchase, maintenance and replacement
・ Further strengthening the response to customers’ needs by our own

22/ 34

Solution / Materials Handling Equipment(thousand units)

Further expansion of sales(thousand units)
250

Market1,000

Our unit sales

Others200

Lift truck market

Unit sales of materials
handling equipment

800

Europe

150
600

100

400

North
America50

200【Enhance the appeal of products】
・Commonalize platforms
・Develop major functional components
in-house【Strengthen Supply Structures】
・Expand production capabilities inemerging countries
・Produce major functional components in
optimum countries【Upgrade Sales and Service Capabilities】
・Strengthen sales and service networks
・Strengthen service capabilities
・Strengthen leasing and rental business

Japan
0

Company
estimation

2008

2009

2010

2011

2012

2013

2014

0
2015 2016 (FY)（Plan） （Plan）

Aim to increase sales
units and income

23/ 34

Ⅱ．Our Business Initiatives
toward medium term growth
Solution

Materials Handling
Equipment

Key Components

Car air-conditioning
Compressor
24/ 34

Key components / Car air-conditioning Compressor

TICO’s Technology and Sales Expansion

Variable-displacement type
(CS valve)

Fixed-displacement type(rotary valve)(Thousand units)

Electric type(mass-production for HV)

30,000: World first
25,00020,00015,00010,0005,000

Variable-displacement type(one-way swash plate externallycontrolled type/ clutch less)（Plan）

30,000Electric
type

Variable-displacement type
(One-way swash plateinternally controlled type)
Fixed-displacement type(10-cylinder swash plate )Variable-displacement type
(One-Way Swash Plate )OthersFixed-displacement type(10-cylinder swash plate )0
81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 （FY）

25/ 34

Key components / Car air-conditioning Compressor

Product development centered on 3Es
1．Appropriately responding to a broader range of customers’
needs both in emerging countries and developed countries
Targetingdeveloped
countries

Fitted in all Toyota Motor Corporation’s HVs and PHVs
Promoting sales to other automakers
1) Electric type : Increasing in the number of inquiries due to expansion of HV, PHV and
EV market(1) More compact, lighter weight and improve quiet operation and fuel-efficiency(2) Enhancing the appeal of products by improving performance of motors and inverters
produced in-house

For HV, PHV, EV

For internalcombustion vehicle

Adopted by leading automakers around the worldsuch as Toyota Motor Corporation

1) Variable-displacement type : Needs for fuel-efficient type is growing primarily in North
America because of more strict regulations on fuel efficiency(1) Developing a next-generation type with further greater fuel efficiency(2) Optimum balance between performance and price of products for emerging countries
2) Fixed-displacement type : Strong demand in emerging countries
Targetingemerging
countries(1) Developing models for emerging countries(2) Improving price competitiveness26/ 34

Key components / Car air-conditioning Compressor

Expanding sales of electric compressors

Developed models(Thousand units)

2,500

ESA34

2,000

ESA27

Sales of electric-powered vehicles (HVs, PHVs, EVs)（CY）*（Plan）

Unit sales of Toyota
Industries electriccompressors （FY)（Plan）

1,500

ES14
1,000

ES34

ES27

CY: calendar year ended Dec.31

500

FY: fiscal year ended March 31of the following year

0

05

06

07

08

09

For PHVs and Evs
Non-Toyota
Prius

Estima HV

Highlander HVFor HVs

Lexus
LS600h10Harrier HV

12

13

Prius PHV

Renault RAV4-EV
NissanBMW VW

Renault

Daimler Porsche

Ford

Prius
SAI

Camry HV

Toyota11

Alphard
Lexus
GS450hLexus
HS250hCrown HV

Aqua

15

*Surveyed by Toyota Industries
Corporation

Honda

Lexus ES

Yaris

14

AvalonLexus IS
Lexus RX

Promote sales
expansion

Priusα
Lexus
CT200h27/ 34

Key components / Car air-conditioning Compressor

Establishing Optimum Production and Supply Structures
1．North America
1) Expanding production capabilities to respond to the growing demandof variable-displacement type resulted from more strict regulations
on fuel efficiency
2) Increasing local procurement ratio by establishment of a production
base for compressor parts in Sep. 2013

MACI

MACI/TACG

TICA

TACG/TICA

2．Europe
1) Expanded production capabilities in Oct. 2013 to respond to thegrowing demand of compressors
associated with the increased productionof cars2) Increasing local procurement ratio

TDDK

TDDK

28/ 34

Key components / Car air-conditioning Compressor

Establishing Optimum Production and Supply Structures
3．ASEAN1) Relocate a production base in Indonesia and expand
production capabilities in Oct. 2014 to respond to thegrowing demand of compressors in ASEAN
area and increasing exports to other areas
2) Increasing local procurement ratio

TACI

TACI

4．China1) Established a production base for car air-conditioning compressors
in Dec. 2013
2) Relocate and expand the existing subsidiary to produce car
air-conditioning compressors in Oct 2014

YST

YST
TACK

TACK

29/ 34

YST Profile
1. Name: Yantai Shougang TD Automotive Compressor Co., Ltd.

2. Location: Yantai City, Shandong Province,
People's Republic of China(Thousand units)

3,000

Production Units（Plan）

2,500

3. Start ofoperations: December 2013

4. Investment: 3.68 billion yen

2,000（Plan）

1,500
1,000
500

5. Ownership: Toyota Industries Corporation: 50.1% 0
2014
Shougang Group: 29.9%
DENSO (China) Investment Co., Ltd.: 20.0%

2015

2016

(FY)

Consolidated

6. Main customers :Toyota Motors, Honda,
Benz, Volkswagen,local automakers in China

30/ 34

Key components / Car air-conditioning Compressor

A global initiative to enhance manufacturing capabilities
Promoting GTCC (Global Training Center of Compressor)
1. Background（Thousand units）

Due to the growing market outside Japan as well as theneeds of local production, overseas production is increasing

35,00030,000Overseas
Domestic（Plan）（Plan）

Toyota Industries Sales units

25,00020,000

It is important to maintain and enhance quality
at our production bases around the world

15,00010,0005,000
02. Aim2010 2011 2012 2013 2014 2015 2016

(FY)1） Develop core human resources at overseas production bases to manufacture high-quality
products worldwide2）Improve Japanese staff skills to train manufacturing personnel at overseas production bases

3. Content
Teaching technical skills and instilling our thinking on manufacturing
in manufacturing personnel from overseas production bases
at a production base in Japan that serves as a mother plant・Manufacturing personnel from the US, China and Indonesia
attended GTCC
・Strengthening the activities of GTCC
31/ 34

Key components / Car air-conditioning Compressor

Advantages of our Car Air-Conditioning Compressor Business
Performance Advantages
 Our products maintain our leading position in the market in terms of fuelefficiency, smaller size, lighter weight and quietness
Capacity for technological development accumulated through responding
the needs of automakers in the world
Product tests including a variety of severe environmental conditions

 Main products of each type were developed first in the world
Product・Fixed-displacement type (10-cylinder swash plate )・Variable-displacement type (one-way swash plate internally controlled type)
・Variable-displacement type (one-way swash plate externally controlled type/ clutch less)・Electric type・Fixed-displacement type (rotary valve)
・Variable-displacement type (CS valve)

Broad Product Lineup responding to various customer needs
Emerging
countries

Developed
countries

For mini vehicles

For large vehicles

For internal-combustion
vehiclesFor electric vehicles
32/ 34

Key components / Car air-conditioning Compressor

Advantages of our Car Air-Conditioning Compressor Business
Keep and further high-quality at every stage
 Achieve the best quality during every process, from procurement to product shipment

Quality Aluminum die casting technology enhance the reliability of our car air-conditioning
compressors

Keep production engineering know-how in a “black box”
 Develop main production facilities in-house

Global Production and Supply Structures
 Respond appropriately to the supply needs of automakers in Japan and around the world

Production  Enhance manufacturing capabilities of overseas production bases through various efforts
andsuch as GTCC
SupplyFlexibility to fluctuations in production
 Increase compact production lines

Sales Technical sales and technical support near automakers
andSupport  Provide technical sales and support in North America, Europe, China and Brazil
33/ 34

Key components / Car air-conditioning Compressor

Further expansion of sales

Accelerate expansion of sales
to automakers worldwide（Thousand units）

30,000Toyota Industries Sales units

Others

25,00020,000Europe15,000North
America

10,000
5,000

Japan

0
2008

2009

2010

2011

2012

2013

2014

2015

2016 (FY)（Plan）（Plan）

34/ 34

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

andforward-looking

statements

are

based

on

management’s

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