Toyota Industries Report

2 0 12Business Activities
Materials Handling Equipment
Automobile

26−31
P 32−36
P

Vehicle / Engine / Car Air-Conditioning Compressor / Car Electronics

Logistics
Textile Machinery37−38
P 39−40
P

25

Toyota Industries Report 2012

Materials Handling Equipment

As for the Materials Handling Engineering Business,
which is represented by automated storage and retrieval
systems and automatic guided vehicles (AGVs), we
stepped up our efforts to promote the development ofsuch overseas markets as China.
Difficult conditions continued in the market for aerial
work platforms due to such impacts as the earthquake
and the economic downturn in Europe. To counter thesituation, we concentrated on expanding sales of Aichi
Corporation, which possesses the top brand of aerial work
platforms in Japan, while pushing ahead with cost
reduction efforts. As a result, net sales exceeded theprevious fiscal year’s level.

As the globally recognized top brand of lift trucks, Toyota Industries provides
cutting-edge products and services to customers across the world,with the level of quality only an industry leader can achieve.

n Japanese Market
No. 1 Market Share* in Lift Truck SalesRAYMOND and CESAB brands. Mutually utilizing the sales
and development strengths of each brand, TMHG is
promoting business expansion on a global scale.

Business Overview in Fiscal 2012

Market Conditions and Business Activities
in 2011

Materials Handling Equipment Sales(Thousand units)

250
200
150
100
50

* Surveys by Japan Industrial Vehicles Association and Toyota Industries Corporation,
2011

Introducing Products Excellent in Environmental
Performance and Work Efficiency
TMHJ added four optional attachments for the 3.5- to
4.5-ton GENEO-HYBRID diesel-powered internalcombustion hybrid lift trucks to make the GENEO-HYBRID
more versatile in responding to diverse customer needs invarious industries, including paper and pulp as well as
lumber industries.
In addition, charging stands for plug-in hybrid vehicles(PHVs) and electric vehicles (EVs) are now available

08

09

10

11

12

Toyota Material Handling Group Organization Chart

TMHG

Toyota Material Handling Group (TMHG)

26

As a market leader with extensive knowledge oflogistics needs across the world, Toyota
Industries provides a full range of lift trucks andother materials handling equipment to customers
worldwide.
Under the TMHG management structure, we
engage in business under the TOYOTA, BT,

Toyota Industries Report 2012

RegionOrganization

Brand

Japan

North America

EuropeALOMA*

China

TMHJ

TMHNA

TMHE

TMHI

TMHCN

Toyota Material
Handling Japan

Toyota Material HandlingNorth America

Toyota Material
Handling Europe

Toyota Material
Handling International

Toyota Material
Handling China

TOYOTATOYOTARAYMONDTOYOTABT
CESAB

TOYOTABTRAYMONDTOYOTABTRAYMOND* ALOMA stands for Asia, Latin America, Oceania, Middle East and Africa.

n Kaizen Example for Customer in the Food Industry
Toyota Industries’ automated storage and retrieval
system significantly reduced the burden of moving
barrels, which weigh 60 to 90 kg each, into and outof the warehouse. Moreover,three-dimensional use of thewarehouse space created
1.5 times greater storage
volume and enabled smooth
movements of lift trucks tocarry barrels within thewarehouse.
Newspaper advertisement
showing a kaizen example

Topic
In February 2012, Toyota Industries concluded abusiness and capital tie-up agreement with Seibu
Electric & Machinery Co., Ltd. based in Koga,
Fukuoka Prefecture.
With a view to strengthening our lineup ofmaterials handling systems, such as automatedstorage and retrieval systems and transportationequipment, we consign a portion of our customized
designing and production operations to Seibu.
Accordingly, we will shift our focus, which has been
traditionally placed on materials handling equipment
hardware, to strengthening software development.

0(FY)

TMHJ has been offering solutions for greater energy
savings and logistics efficiency to customers under thetheme “Warehouses Are Full of Improvement Seeds.” In
July 2011, TMHJ launched the Eco Lineup Campaign toexpand sales of environmentally friendly electric and hybrid
lift trucks.
Starting in November 2011, TMHJ ran a series ofnewspaper advertisements showing examples of its pastkaizen (continuous improvement) solutions. At the sametime, TMHJ provided free logistics diagnoses acrossJapan in an effort to capture latent customer needs.
TMHJ is providing optimal logistics solutions
combining its extensive product lineup that ranges from lift
trucks to a variety of materials handling systems with awealth of logistics improvement know-how and superior
service structure.

Materials Handling Equipment

Materials Handling Equipment

In 2011, the lift truck market in respective regions enjoyedfavorable conditions driven by the market recovery indeveloped countries and market growth in emerging
countries. In Japan, we were forced to partially suspend
production operations after the Great East Japan
Earthquake in March 2011. Nevertheless, we worked toquickly restore and make up for the delay in production byflexibly utilizing our unique supply chain. We also focusedon expanding sales in the manufacturing industry where
there was an upturn in capital investment. In Europe andNorth America, we reinforced our ability to accept large
orders covering geographically extensive areas andproactively participated in various exhibitions to appeal theexcellence of our products and services. With the aim ofstrengthening both our production and sales activities inemerging countries, we engaged in sales expansion
activities through our new sales subsidiary established inIndia and decided to construct a lift truck production plantin Brazil.

Appealing Energy Savings and Logistics
Efficiency to Customers

Business Activities

Business Activities

In the materials handling equipment industry, emerging
countries primarily in Asia, as well as Europe, North
America and Japan, maintained an upward trend in theirrespective markets. Amid this environment, Toyota
Industries reinforced production and sales structuresand rolled out products matched to respective market
conditions. As a result, sales of our mainstay lift trucks
rose both in and outside Japan to a total of 184,000 units,
an increase of 31,000 units, or 20%, over the previous
fiscal year. Net sales rose ¥80.1 billion, or 16%, to¥570.7 billion.

In 2011, the Japanese lift truck market was negatively
affected by the earthquake, but subsequent recovery
resulted in approximately 10% growth over the previous
year. Toyota Material Handling Japan (TMHJ) quickly
restored its suspended operations to make up for thedelay in production and worked hard to expand sales tothe manufacturing industry, including the transportationequipment sector, in keeping pace with a recovery in themarket. Reflecting these efforts, unit sales in fiscal 2012
increased 21% year-on-year to 32,000 units. TMHJ
secured a 42.7% share of the Japanese market in2011 and maintained its top position* for the 46th
consecutive year.

through TMHJ dealers located throughout Japan. Drawing
on our servicing capabilities, which we have accumulated
in the field of electric lift trucks, we are working tosatisfy growing needs for maintenance services in theelectric-powered vehicle field.

Attachments available as an
option for the GENEO-HYBRID

27

Toyota Industries Report 2012

n North American Market

n European Market

Maintaining Top Market Share*1 for 10thConsecutive Year

Aiming to Provide Customer-Oriented Services
and Industry’s Leading Products

The North American lift truck market increased by morethan 30% in calendar year 2011 compared with 2010.
Toyota Material Handling North America (TMHNA)
remained the market share leader*1 in fiscal 2012 withcombined unit sales of TOYOTA and RAYMOND brands
of approximately 59,000 units, an increase of 37%.
Toyota, as a full line supplier of lift trucks, remained themarket share leader*1 in North America for the 10thconsecutive year, and Raymond, as a leading provider ofelectric lift trucks and solutions used in warehouse anddistribution environments, focused on helping warehouses
and other facilities achieve more efficient and sustainable
operations through Eco-Performance.

Growth of the North American lift truck market is expected
to slow in 2012 compared with the previous year. TMHNA
will seek to further enhance synergies to ensure the fullpower of both the TOYOTA and RAYMOND brands isutilized. TMHNA will continue to offer customer-centric
services and industry-leading products to enhance
efficiency and productivity while lowering costs.

Topic*1: Survey by Crist Information & Research, LLC, 2011

Proactively Launching New Products andServices
TMHNA introduced a compact battery compartment
option available on Toyota 8-Series 4-wheel AC electric lift
trucks. The new option supports customer requirements
to operate in cramped warehouses and environments.
Raymond 7000 Series Reach-Fork truck

Toyota 8-Series 4-wheel AC electric lift truck

The new Raymond 7000 Series Reach-Fork trucks
were introduced featuring industry-leading lift and lower
speeds, and regenerative lowering, which produces
energy when the forks are lowered to increase battery shift
life. The newly developed Raymond Courier™ automatedlift truck allows for flexible automation without systemconstraints through the integration of vision guided

TMHNA is committed to developing and providing
products and services that satisfy the diverse needs ofcustomers and assist them in setting up a highly efficientlogistics environment.
In recognition of such initiatives, Plant Engineeringmagazine awarded TOYOTA’s new 8-Series 4-wheel AC
electric lift trucks the 2011 Product of the Year Gold
Award in the Material Handling Category. Plant
Engineering also awarded a 2011 Product of theYear award to RAYMOND’s new Models 9300/9400
Sideloader lift trucks.
Also, in an independent study of lift truck users,
TOYOTA took top billing as the lift truck customers
consider safest and most reliable*2. In the supply of parts
as well, lift truck users voted Toyota genuine parts highest
in quality and reliability for the third year in a row.

Sales Expansion Efforts Including New Product
Series and Services
TMHE launched the new BT Optio L, an ergonomicallydesigned order picker introducing the new “Smooth
Operator” concept. The product features a function toautomatically control the operating speed when goingaround a curve and a suspension mechanism to ensure asmooth ride by absorbing vibrations from under thedriver’s seat. The BT Optio L-series won the Gold Award,
the highest among the iF Product Design Awards*, for its
excellent performance, functionality and quality of design.
TMHE has also been focusing on logistics solutions
services, and as a result of its proactive sales expansion
activities, obtained a number of new customers in fiscal
2012. TMHE contributes to reducing operational costs
and enhancing safety by offering a variety of solutions,
including automated logistics.
* The iF Product Design Award is one of the world’s most prestigious awards presented
every year since 1954 by the Germany-based organization International Forum Design.

Materials Handling Equipment

Materials Handling Equipment

Highly Acclaimed TOYOTA and RAYMOND Brands

In 2011, the lift truck market in Europe showed signs ofrecovery on an annual basis, although growth slowed in
the second half. Overall, demand in the market increasedby more than 20% year-on-year.
Amid this environment, Toyota Material Handling
Europe (TMHE) participated in various exhibitions tocapture latent demand by offering logistics solutions andto promote a wide array of products and services. As aresult of these proactive sales expansion activities, TMHE
recorded unit sales of 60,000 units, an increase of 21%
over the previous fiscal year.

Business Activities

Business Activities

technology that does not require lasers, magnetic tape,wires or additional infrastructure. As a result, theautomated lift truck can be flexibly integrated into a variety
of facilities.

In 2011, Toyota Industrial Equipment Mfg., Inc.
(TIEM), a subsidiary producing TOYOTA-brand lift
trucks in North America, recorded cumulative total
lift truck production of 400,000 units. TIEM wasselected as one of the 10 Best Plants in North
America in 2011 byIndustryWeek magazine andearned the Company of theYear Award for 2011 fromthe Columbus Area
Chamber of Commerce. In
addition, TIEM received the
Occupational Excellence
Achievement Award from the
National Safety Council inrecognition of recording a lost work time rate of lessthan 50% of companies in the same businessclassification, as well as the 2011 Governor’s Award
for Environmental Excellence from the governor of
the U.S. state of Indiana.
The RAYMOND brand was exhibited at MODEX
2012, a trade show held in February 2012 in
Atlanta, Georgia. During the event, the RAYMOND
brand appealed to visitors its ability to offer solutions
that enable energy savings and other benefits alongwith efficient logistics.

Increasing Unit Sales by Grasping Market Trends*2: Survey by Peerless Media Research Group, 2011
BT Optio L-series order picker

MODEX 2012 trade show

28

Toyota Industries Report 201229

Toyota Industries Report 2012

Appealing Excellent Quality of Products andServices at Exhibitions
In May 2011, TMHE participated in CeMAT, the world’s
leading intralogistics trade fair, in Hannover, Germany.
Visitors were able to see the full range of products andservices offered by TMHE under the corporate theme“Responsible Together” in three areas: Responsible
Innovation, Safety Dojo and Empowering Your Business.
Attendees could experience a live demonstration of
the Toyota GENEO HYBRID lift truck and automatedorder picking along with using interactive tools to
discover innovative logistics solutions to help reduce
customers’ costs.

At the Inter Airport Europe exhibition held in October
2011 in Munich, Germany, TMHE presented its flight
carriers, a range of towing tractors designed for airport
materials handling, which have been introduced at airports
all over the world.

Toyota towing tractor

Reinforcing Production and Sales Operations in
Growing Markets
To secure a competitive position in the expanding Indian
market, Toyota Material Handling India Pvt. Ltd. (TMH
India) started operations in May 2011. Concerted efforts
are being made to expand sales and service operations tofurther improve capabilities to serve customers nationwide
based on a full range of products.
In Brazil, which is the largest industrial vehicle market
in Latin America, besides stepping up sales activities, thedecision was made to construct a new production plant inSão Paulo. In October 2013, the new plant will commence
production of internal-combustion lift trucks, for which
there is strong market demand. Production will gradually
be extended to cover other products.
In Vietnam, Toyota Industrial Equipment Vietnam Co.,
LTD. (TIEV) commenced production of motors for electric
lift trucks in April 2012. By supplying these motors to lift
truck assembly plants worldwide, TIEV is strengthening its
price competitiveness.

Offering Products Attuned to Needs in Each Region
and Building Optimum Supply Structure

Helping Customers Reduce Operational Costs
and Contributing to Better Materials Handling
Environmentn ALOMA* and Chinese Markets
Further Upgrading Sales and Service Capabilities
Toyota Material Handling International (TMHI) covers the
ALOMA* markets of Asia, Latin America, Oceania, theMiddle East and Africa, while Toyota Material Handling
China (TMHCN) covers the Chinese market.
In 2011, these markets have experienced strong
demand for lift trucks supported by continued economic
expansion. Although both TMHI and TMHCN engaged in
key efforts to further strengthen their competitive positionin sales and services, sluggish sales in China resulted inunit sales in these markets decreasing 3% to around
33,000 units in fiscal 2012.

Topic
Toyota Industrial Equipment Vietnam Co., LTD.

In China, Toyota Industry (Kunshan) Co., Ltd. (TIK)
launched production of the new 8FBN electric lift truck,a global model. The 8FBN was rolled out in the Chinese
market in June 2011 and subsequently in the ALOMA
markets in February 2012. A plant was also set up to
produce BT-brand low lift trucks in Foshan, Guandong
Province, and another one to manufacture RAYMONDbrand compact towing tractors in Dalian, Liaoning
Province. On the sales front, in addition to upgrading thecapabilities of existing distributors, a joint sales company
was established and began operations in September
2011. These activities were aimed at further reinforcing
sales and service networks in major cities.

The 2nd TMHI Distributor Conference held in
November 2011 brought together around 70
representatives from 42 distributors of the TOYOTA,
BT and RAYMOND brands in 35 countries in the
ALOMA markets. TMHI’s medium-term targets andaction plans for achieving them were presented. In
addition, participants also increased their productknowledge about lift trucks, warehouse trucks andtowing tractors for each brand, together with visitinga service facility of a TMHJ dealer to learn aboutsales management and site operations.

Materials Handling Equipment

Materials Handling Equipment

At CeMAT, the new range of CESAB-brandcounterbalanced lift trucks featuring improved mast
operability and superior safety in addition to warehousetrucks were exhibited.

An upward trend in demand for lift trucks is expected in
the ALOMA and Chinese markets in 2012. TMHI and
TMHCN will continue to enhance their capabilities in terms
of providing a full range of excellent lift trucks and services
matched to needs in respective regions and establishingan optimum supply structure to meet customer
expectations.

Business Activities

Business Activities
TMHE booth at CeMAT

TMHE will continue to support customers across Europe
to reduce their operational costs through advanced
automated systems and an extensive product lineup, as
well as excellence in service, with innovative solutions likethe Toyota I_Site fleet management system. TMHE willcontinue with its activities to work responsibly together
with its customers, suppliers and partners for a better
materials handling environment. Its ongoing partnershipwith EU-OSHA (European Agency for Safety and Health atWork) is one example of such initiatives. Under the theme“Working Together for Risk Prevention,” both management
and the workforce will increase collaboration to ensure
safety in the workplace.

Toyota 8FBN electric lift truck* ALOMA stands for Asia, Latin America, Oceania, Middle East and Africa.
TMHI Distributor Conference
CESAB booth at CeMAT

30

Toyota Industries Report 201231

Toyota Industries Report 2012

Automobile

Industries collaborates with TMC to make suggestions on
new vehicle specifications and car-related goods underthe banner “Make Our Vitz More Attractive by Ourselves.”
At the same time, we also undertake activities to expand
our customer base by enhancing the appeal of the Vitz
through our support to motorsports events.

In the fields of vehicle assembly, engines, car air-conditioning compressors and car electronics,
Toyota Industries is contributing to the creation of eco-friendly and comfortable automobiles byleveraging its environmental technologies for energy savings, electrification and lighter weight.

The RAV4 and Lexus IS for Europe are equipped with our
AD diesel engine that cleared Euro 5 emission standards
in 2008.
In 2011, our KD and VD diesel engines also passed
Euro 5 emission standards, and we worked to attaingreater fuel efficiency for our AD diesel engines.

Highest-Level QCD to Contribute to Productionof Attractive Toyota Cars
In the face of the shrinking automobile market in Japan,
we are further strengthening our superior level of quality,
cost and delivery (QCD). We also are working to leverage
our ability to quickly start up production and a flexible
structure in terms of production volume and vehicle
models to contribute to production in Japan of
Toyota vehicles.
KD diesel engine

EngineVehicleBusiness Overview in Fiscal 2012

Business Overview in Fiscal 2012
An increase in production primarily of KD diesel engines
was offset by a drop in production of AR gasoline engines,
and production volume in fiscal 2012 remained on par withthe previous fiscal year at 610,000 units. Net sales were at
the same level as the previous fiscal year at ¥197.1 billion.
Engine Production*1: Short for gas heat pump; air conditioner driven by a gas engine*2: Short for combined heat and power; co-generation system(Thousand units)

700
600

Aiming to Bring Satisfaction to More Customers

500
400
Prius α fitted withpanoramic roof

Vehicle Production

300
200
100

(Thousand units)

400

0

(FY)

08

09

10

11

12

300

Toyota Industries’ Diesel Engines Highly
Acclaimed by Customers Worldwide

200

100

Enhancing Appeal of the Vitz

0
(FY)

08

09

10

11

12

Plastic Glazing Panoramic Roof for the Prius(Prius v in North America and Prius + in Europe)
Toyota Industries commenced production of a panoramicroof made of plastic glazing for the Prius α, a hybrid

32

Toyota Industries Report 2012

Both Toyota Industries and TMC had undertaken domestic
production of the Vitz until March 2010; however, we
became the sole producer in Japan. We also designed a
portion of its upper body and interior, as well as the RS, asporty model in the Vitz family, thereby undertaking a fullrange of processes from development to production. Witha view to turning the Vitz into a long-selling series, Toyota

Toyota Industries’ engines are highly renowned for their
excellent environmental performance in non-automotive
fields as well. These engines are used for a wide variety of
applications, including GENEO-HYBRID diesel-poweredinternal-combustion hybrid lift trucks, and adopted by
GHP*1 manufacturers in Japan and CHP*2 manufacturers
worldwide.

Toyota Industries’ diesel engines, fitted in a variety of
Toyota vehicles sold around the world, have gained highmarket recognition for their cleaner emissions, greater fuelefficiency and higher performance. KD diesel engines, forwhich production started in 2005, are installed in TMC’s
Innovative International Multi-Purpose Vehicle (IMV) series,
and their sales have been achieving steady growth mainlyin Asia and Latin America. The V-type 8-cylinder VD diesel
engine, which was developed primarily by Toyota
Industries, is installed in the Land Cruiser, and soldparticularly well in Australia, Russia and the Middle East.

Toyota Industries has been making efforts to achieve
shorter development cycles with improved efficiency. At
the same time, we have been carrying out development of
next-generation automobile engines that can clear Euro 6
and other stringent emission standards, as well as engines
for materials handling equipment and general purposes,featuring greater fuel economy and lower costs.
We have been participating in various overseas
exhibitions, with an eye to acquiring new customers forour general-purpose engines. Looking ahead, we will
establish optimum sales and service structures matchedto each market with a focus on sales expansion activities
mainly in emerging countries.

Automobile [Vehicle • Engine]

Automobile [Vehicle]* Survey by Toyota Industries Corporation

Developing Competitive Engines in Fields Other
than Automobiles

Business Activities

Business Activities

In the automobile industry, despite sluggish growth of theJapanese market, the global market grew in line with
continued market expansion in Asia and a market upturnin North America. Although adversely affected by theearthquake in Japan and the flooding in Thailand, Toyota
Industries worked hard to restore production activities.
In fiscal 2012, unit production dropped by 17,000
vehicles, or 6%, from the previous fiscal year to 278,000
vehicles, due to lower sales of the RAV4 and Vitz (Yaris
outside Japan). Net sales were down ¥21.1 billion, or 6%,
to ¥354.4 billion.

vehicle marketed by Toyota Motor Corporation (TMC) in
May 2011. In light of the growing demand for reduced
vehicle weight, we have developed plastic glazing as alighter-weight substitute for glass.
This product retains the beautiful surface quality typicalof a glass roof yet is approximately 40% lighter* than its
glass counterpart, improving vehicle fuel efficiency andthus contributing to the reduction of CO2 emissions. We
are currently receiving numerous inquiries from many
automakers in and outside Japan. Toyota Industries willcontinue to develop attractive new products that leverage
the distinctive characteristics of plastic glazing.

33

Toyota Industries Report 2012

Car Air-Conditioning Compressor

Business Overview in Fiscal 2012
Unit sales of car air-conditioning compressors increased
both in and outside Japan, pushing up overall unit sales by
2.72 million units, or 14%, to 21.55 million units. Net salesrose ¥14.7 billion, or 8%, over the previous fiscal year to¥206.5 billion.
Compressor Sales(Million units)

25
20
15
10
5
0

(FY)

08

09

10

11

For developed countries, we are promoting thedevelopment of variable-displacement type compressors
with greater fuel efficiency and electric compressors thatare compact, lighter and quiet.
Since initially being installed in the second-generation
Prius, our electric compressors have been fitted in all
Toyota hybrid vehicles (HVs), from the third-generation
Prius to the Aqua (Prius c in North America). Backed byour proven sales track record to TMC coupled with strong
product appeal, we have been receiving an increasing
number of inquiries from other automakers around theworld for application in their HVs, plug-in hybrid vehicles(PHVs) and electric vehicles (EVs).
In emerging countries, we are working to improve
the reliability and price competitiveness of our fixeddisplacement type compressors. We are also striving
to optimally match functionality and costs for variabledisplacement type compressors, for which demand is
growing. Combining the appeal of our products with
our ability to provide excellent technical support requiredby automakers, we intend to increase our share in
respective emerging countries where our sales presence isrelatively small.

In terms of procurement, we will take steps to reduce
costs by establishing an optimum procurement structure
on a global basis and increasing procurement from local
business partners.

Further Augmenting Global Production and
Procurement Structures
We have been increasing production of our variabledisplacement type compressors in North America andEurope in response to the growing need for higher fuelefficiency in developed countries. In Japan, we havebeen expanding our capacity to manufacture electriccompressors.
In emerging
countries, P.T. TD
Automotive Compressor
Indonesia (TACI), a new
car air-conditioning
compressor production
base, commenced
production operations
in June 2011. We willfurther augment TACI’s
production capacity to 10SA13 fixed-displacement type compressor
produced by TACI and installed in TMC’s IMV
respond to the growing series vehicles and the Etios
ASEAN automobile
markets.

Establishment of Production Base for VariableDisplacement Type Car Air-Conditioning
Compressor Parts in the United States
In February 2012, we established Toyota Industries
Compressor Parts America, Co. (TICA), a production basefor car air-conditioning compressor parts for the North
American market, in the U.S. state of Georgia.
Through the establishment of the new company, we
aim to meet the growing demand in North America forfuel-efficient variable-displacement type compressors,
increase the ratio of compressor parts procured locallyand improve our price competitiveness.
TICA plans to start the production of parts in
September 2013 for two compressor production bases in
the United States. By fiscal 2017, TICA intends to produce
parts for 6 million compressors annually.

12

Enhancing Appeal of Our Extensive Lineup
Business Activities

Business Activities

Personnel engaged in development work

Testing

Worldwide Bases of Car Air-Conditioning Compressors

Toyota Industries’ Compressor Lineup

DNDE

ModelsGermany

TDDK

Germany
YSD

DICH

MACI

China

China

U.S.A.

DIAM

U.S.A.

DSIT

For large
vehiclesFixed displacement,swash plate type

Variable displacement,swash plate type

Italy

Electric type

TICO

DNTS

Japan

Italy

TACK

SUBROS

China

India

Fixed displacement,
vane type

Automobile [Car Air-Conditioning Compressor]

Automobile [Car Air-Conditioning Compressor]

In order to meet a diverse range of customer needs,
Toyota Industries offers a full lineup of car air-conditioning
compressors, including a vane type for compact vehicles,
fixed-displacement type for medium to large vehicles,
variable-displacement type and electric type.
Our extensive lineup can adequately respond to theregionally diverse needs of customers both in developedand emerging countries. We intend to further enhance theappeal of our extensive lineup.

Fixed displacement,
scroll type

TACI

Indonesia

TACG

U.S.A.
TICA

U.S.A.

DNMY

Malaysia

DNBR

For compact
vehiclesBrazil: Consolidated production bases

Target emerging countries

Target developed countries: Licensed manufacturers: Technical service stations

Toyota Industries’ car air-conditioning compressors are widely adopted by automakers around the world, garnering the No. 1* position in global sales.
* Survey by Toyota Industries Corporation

34

Toyota Industries Report 201235

Toyota Industries Report 2012

Car Electronics

Business Overview in Fiscal 2012
In fiscal 2012, Toyota Industries posted an increase in net
sales of car electronics products, fueled by a rise inproduction of the Toyota Prius and other HVs, and anincrease in the number of models fitted with our products,
such as the Aqua and the Prius Plug-in Hybrid.

In January 2010, we initiated an electric powertrain
promotion project as a Company-wide organization topromote electrification of our products. We have since
worked to bolster the development of core components
and systems for drive systems.
As the first product developed under this project, wereleased a powertrain unit for EVs in November 2011. We
integrated designs of functional components, such as aninverter, motor and reduction gears, into one package andsuccessfully reduced the size and weight.

Logistics
Toyota Industries offers customers highly advanced, efficient logistics services to
respond to their diverse needs, including consigned operation of distribution centers;
land transportation services; cash collection and delivery and cash proceeds
management services; and data storage, management, collection and delivery services.

Gaining Experience and Greater Role in ElectricPowered Vehicle Field
Toyota Industries develops and produces electronic
components and devices for electric-powered vehicles,
including HVs, PHVs and EVs.
[ Auxiliary Power Source Devices ]A DC-DC converter converts the high voltage of HV
batteries to a lower voltage level suitable for operating
lights, wipers, horns and other auxiliary devices. Sincebeing adopted in the first-generation Prius, we havecontinuously developed more compact and lighter weightmodels to be fitted in the third-generation Prius and Aqua.
As of the end of February 2012, cumulative production hit
4 million units.

Business Overview in Fiscal 2012

DC-DC converter fitted in the Prius[ Core Components for Drive Systems ]Toyota Industries applied its proprietary direct-coolingmethod to develop a device with significantly higher
cooling performance. We have entered the field of corecomponents for drive systems such as power control units(PCUs) for the third-generation Prius.

Toyota Industries Report 2012

Home-use charging unit

Accelerating Development Activities toContribute to Realization of Low-Carbon Society
Demand for environment-friendly products with highenergy efficiency is expected to grow more rapidly, withthe trend toward electrification likely to expand not only for
automobiles but also for such non-automotive products asmaterials handling equipment. Enhancement of thecharging infrastructure will also take a greater role inpromoting the spread of PHVs and EVs.
Targeting the high-growth, electric-powered vehicle
market, we will accelerate development of technologies
and products in the fields of auxiliary power source
devices, core components and systems for drive systems
and charging infrastructure, thereby making a significant
contribution to the realization of a low-carbon society.

Toyota Industries operates distribution centers for various
industries and customers. During fiscal 2012, operation ofexisting distribution centers was less affected by theearthquake and the flooding and generated a relatively
steady logistics volume. We continued to promote cost
reduction activities at logistics sites based on the thinking
embodied in the Toyota Production System (TPS) tostrengthen our profit structure.
We continued our proactive sales activities by making
proposals to optimize the entire supply chain of eachcustomer. As a result, we successfully obtained two neworders for the consigned operation of distribution centers.
We also actively carry out consulting services to
respond to customer needs in an effort to capture latentdemand for consigned operation of distribution centersand logistics systems.

The Taikoh Transportation Group provides landtransportation services under consignment from many
automotive parts manufactures. The group collects
finished parts from manufacturers, compiles them by theirdestination and delivers to automakers “what is needed,when it is needed and in the quantity needed.”
During fiscal 2012, while the automobile industry, ourprincipal customer, was affected by the earthquake andthe flooding, an early recovery in production operations
and growing demand for eco cars resulted in a steadyincrease in the volume of automotive parts transportation.
Under these circumstances, we continued our profit
improvement activities by promoting efficient cargotransport while aggressively undertaking activities toensure safe and eco-conscious operations.
We will further reinforce our sales activities to capture
new customers and expand our business domain.

Logistics

Automobile [Car Electronics]

The logistics industry recovered from the effects of theearthquake and the flooding in Thailand relatively quickly,
generating a steady logistics volume. Toyota Industries
continued to seek new orders and strengthen thebusiness structure through profit improvement activities.
However, due to such factors as selling our shares in alogistics service subsidiary, Mail and e Business Logistics
Service Co., Ltd., net sales in fiscal 2012 were down
¥14.8 billion, or 14%, from the previous fiscal year to¥92.9 billion.

Land Transportation Services

Business Activities

Business Activities[ Charging Infrastructure ]We developed a public-use charging stand for PHVs and
EVs jointly with Nitto Kogyo Corporation and launchedsales in July 2009. Upon the market introduction of thePrius Plug-in Hybrid, we co-developed with Nitto Kogyo in2011 a home-use charging unit that features a simple
design and easy-to-use functionality.

Planning, Design and Operation of Distribution
Centers

A DC-AC inverter is used to run home electric
appliances in a vehicle. Following the earthquake in Japan,
it has been drawing much attention as an emergency
power source device.
With regard to onboard chargers, we have developed
and made sales approaches by utilizing our technologies
and know-how in developing EV chargers in the 1990s
and 1,500W AC power source devices. The resulting
onboard charger is fitted in the Prius Plug-in Hybrid
introduced to the market by TMC in January 2012.

36

Powertrain unit for EVs

Taikoh Transportation Group’s land transportation services

37

Toyota Industries Report 2012n Initiating Feasibility Test of a Delivery Locker
With the aim of expanding our business domains,
Toyota Industries has conducted a feasibility study
and product development in the delivery locker
business. Based on these efforts, we havesuccessfully developed a locker with advanced
security features, including the ability to identify
individual users, and initiated feasibility trials incooperation with universities and public
transportation service providers. Through thesetrials, we aim to analyze its serviceability for users
and utilize the results in future development.
The recent sharp increase in the use of online
shopping services has spurred the needs for greateruser convenience and higher efficiency in logistics
operations. We will leverage the advanced
functionality of our distribution lockers as a relay
between senders and recipients and acceleratebusiness development targeting home-delivery
service providers, commercial facilities, companies
and homes, with the ultimate goal of contributing to
the establishment of a social infrastructure in thefield of delivery services.

n Cash Collection and Delivery and Cash Proceeds
Management

Based on the philosophy of founder Sakichi Toyoda, which reflects his strong
commitment to manufacturing, Toyota Industries responds to a broad range of needs
with its extensive product lineup, from air-jet looms, for which we enjoy the top
global market share* in unit sales, to spinning frames and roving frames.

n Data Storage, Management, Collection and Delivery
Wanbishi Archives Co., Ltd. provides support to about
4,000 companies and organizations, including large
financial institutions and government agencies, to ensure
the security and efficient use of their information assets.
Under its robust security structure, Wanbishi Archives
offers a comprehensive range of services covering theentire lifecycle of critical information assets, from storage
and utilization to destruction.
Wanbishi Archives also offers high value-added
services in its outsourcing business, such as digitizing
paper documents, by being closely involved in customers’
business processes.
Based on a survey conducted after the earthquake inMarch 2011 on how companies manage their information
assets, Wanbishi Archives opened Tohoku Center 1, an
information management center, in Natori, Miyagi
Prefecture, in November 2011. The survey results wereannounced the following month.
After the massive earthquake, making a backup of
information assets has become a matter of great importancein terms of developing a reliable business continuity plan
(BCP). Wanbishi Archives is improving the quality of its
services by enhancing its data backup services through its
secure remote backup and storage operations.
Outside Japan, Wanbishi Archives launched full-scale
information assets management services in China throughits local subsidiary established in Kunshan. Capitalizing on
its experience and know-how accumulated in Japan,
Wanbishi Archives provides support to companies andorganizations doing business in China to ensure thesecurity and efficient use of their information assets.
Through such efforts, Wanbishi Archives is actively
pursuing business opportunities in growth markets.

* Toyota Industries holds the world’s No.1 position for the 15th consecutive year since 1997.
Statistics from the International Textile Manufacturers Federation (ITMF), 2011

Business Overview in Fiscal 2012
In the textile machinery field, unit sales were down 2,000
units, or 28%, to 5,200 units, reflecting a drop in sales of
air-jet looms to China. Net sales accordingly declined ¥4.2
billion, or 10%, from the previous fiscal year to ¥38.5
billion.
With the aim of further reinforcing the Textile Machinery
Business, we made Swiss-based Uster Technologies AG
into a Toyota Industries subsidiary in February 2012.

In the field of spinning machinery, we launched sales of
the RX300 high-speed ring spinning frame in September
2011. This product is equipped with a new type of highly
efficient motor and a new type of pneumatic suction
cleaning device, offering excellent energy-saving
performance.

Textile Machinery

Logistics

Asahi Security Co., Ltd. provides cash collection anddelivery and cash proceeds management services on a
24/7 basis to about 2,450 customers mainly in the retailand service industries.
In addition to cash collection and delivery services
tailored to each customer’s specific needs, Asahi Security
offers comprehensive services that include managementof gift certificates and accounting operations at customers’
retail outlets and aims to be a total service provider forcustomers.
During fiscal 2012, with a view to reinforcing its

Textile Machinery

Business Activities

Business Activities

High Value-Added Services Including Cash
Collection and Delivery and Cash Proceeds
Management and Data Storage, Management,Collection and Delivery

nationwide support service network, Asahi Security
opened cash collection and delivery centers in Okinawa
and Kagoshima prefectures while relocating andexpanding the existing base in Nagoya. Logistics sites
were also opened in Hokkaido, Ehime, Nagano andTochigi prefectures.
At each business base, Asahi Security conducts
regular training on its own as well as emergency training
jointly with local police departments in order to provide
safe and trusted services to customers.

Air-Jet Loom Sales(Thousand units)

12
10
8
6
4
2
0

(FY)

08

09

10

11

12

Further Enhancing Product Appeal

RX300 high-speed ring spinning frame

For our mainstay air-jet looms, we improved the electronic
shedding device that enables the weaving of fabrics withcomplex patterns in May 2011. For this latest device, we
also developed the proprietary water-cooled motor, whichis compact and consumes less electricity. The air-jet loom
also is equipped with a new weft yarn inserting system toreduce the amount of air required to carry the weft yarn.

38

Toyota Industries Report 2012

Asahi Security Co., Ltd.’s cash collection and delivery andcash proceeds management services

Wanbishi Archives Co., Ltd.’s Tohoku Center 1

39

Toyota Industries Report 2012

Strengthening Product Appeal through Alliancewith Uster Technologies AG

Participation in ITMA 2011
In September 2011, ITMA 2011, the world’s largest textile
machinery trade show, was held in Barcelona, Spain. At
the trade show, Toyota Industries displayed the JAT710
air-jet loom, which was equipped with the new electronic
shedding device, a new weft yarn inserting system andother devices, as well as the latest RX300 high-speed ring
spinning frame. By demonstrating their actual operations,
we appealed our excellent technological capabilities andstrong commitment to environmental performance tovisitors from many countries, including India, Brazil andPakistan.

In February 2012, Uster Technologies AG joined the
Toyota Industries Group. Uster develops, produces andsells cotton classing and yarn testing instruments that areused throughout the world. Uster defined quality
benchmarks using yarns that it had stockpiled from allover the world for more than 50 years and subsequently
developed yarn testing instruments based on thesebenchmarks. Yarns tested and cleared with these
instruments guarantee a globally accepted level of quality.
The company also possesses leading-edge sensor
technology. We intend to develop innovative products byapplying their world’s most advanced technology to our
air-jet looms and other textile machinery.

Business Activities

Cotton classing instrument

Textile Machinery
Yarn testing instrument

Toyota Industries’ booth at ITMA 201140

Toyota Industries Report 2012

Uster Technologies AG