Toyoda Precepts / Basic Philosophy
By engaging in value creation based on the Toyoda Precepts and basic philosophy,
we aim to contribute to making the earth a better place to live, enrich lifestyles and promote
a compassionate society.

Toyoda Precepts (Corporate Creed)
Always be faithful to your duties, thereby contributing tothe Company and to the overall good.
Always be studious and creative, striving to stay ahead ofthe times.
Always be practical and avoid frivolousness.
Always strive to build a homelike atmosphere at work thatis warm and friendly.
Always have respect for spiritual matters, and remember tobe grateful at all times.

We encapsulated the spirit of founder Sakichi Toyoda in the Toyoda
Precepts, which serve as Toyota Industries’ corporate creed and uponwhich our Basic Philosophy is based.

Basic Philosophy[Respect for the Law]
Toyota Industries is determined to comply with the letter and spirit of the law, in Japan and overseas,
and to be fair and transparent in all its dealings.
[Respect for Others]
Toyota Industries is respectful of the people, culture, and traditions of each region and country in which itoperates. It also works to promote economic growth and prosperity in those regions and countries.
[Respect for the Natural Environment]
Through its corporate activities, Toyota Industries works to contribute to regional living conditions and social
prosperity and also strives to offer products and services that are clean, safe, and of high quality.
[Respect for Customers]
Toyota Industries conducts intensive product research and forward-looking development activities to create newvalue for its customers.
[Respect for Employees]
Toyota Industries nurtures the inventiveness and other abilities of its employees.
It seeks to create a climate of cooperation, so that employees and the Company can realize their full potential.

Message from the Chairman,Vice Chairman and President

Firstly, we would like to extend our sincere appreciation for your continued support of Toyota Industries
Corporation and the Toyota Industries Group.
On March 17, 2023, Toyota Industries announced its regulatory violation related to Japan’semissions certification for lift truck engines. We would like to take this opportunity to express ourdeepest and sincerest apologies for causing great inconvenience to our customers and many otherstakeholders.
We are currently compiling a report on the full picture of the incident, including causes andbackground, as well as measures to prevent recurrence. Toyota Industries is determined to makeconcerted efforts to resolve the inconveniences caused to our customers, suppliers, and all otherconcerned parties as soon as possible. We will also commit ourselves to providing comprehensive
explanations and disclosing detailed information to our stakeholders.
Turning to the surrounding business environment in fiscal 2023 (ended March 31, 2023), although
the global economy showed signs of recovery thanks to the easing of restrictions on economic
activities to prevent the spread of COVID-19, uncertainties abound. They include global inflation
triggered by soaring raw material and energy prices due to the conflict in Ukraine as well asheightened concerns over an economic recession arising from higher interest rates in variouscountries. In this operating environment, Toyota Industries strived to expand sales by responding
flexibly to market trends. As a result, we posted increases in both net sales and profits.
Toyota Industries determined the year-end cash dividend to be ¥100.0, an increase of ¥10.0.
Including the interim cash dividend, we paid annual cash dividends per share of ¥190.0, an increase of¥20.0. The same as last fiscal year, we decided to pay the year-end cash dividend early based on a
resolution by the Board of Directors instead of basing our decision on the resolution of the General
Shareholders’ Meetings as we usually do.
Turning to the surrounding business environment, uncertainties abound with regard to the outlookof the global economy. In addition, in the political, economic and technological areas, changes are
occurring at a growing pace such as accelerating global efforts to realize a carbon neutral society andadvancements in digitalization. In this climate, we will renew our commitment to safety andcompliance and strengthen our management platform while at the same time further enhancing
corporate value through the development of innovative technologies and products.
In closing, we would like to sincerely ask for your continued understanding and support.
July 2023

Tetsuro Toyoda
Chairman

Akira Onishi
Vice Chairman

Koichi ItoPresident1 Targets laid out in Vision 2030

History of Toyota Industries GroupNet sales (¥ Billion)
4,000

Toyota Industries was established to manufacture and sell the Type G automatic loom invented byfounder Sakichi Toyoda as well as to engage in invention and research. Carrying on Sakichi’s spirit ofcontributing to the development of society by manufacturing useful products, we will keep on flexibly
responding to the changing times and achieve sustainable growth.

3,500

3,000

Battery Business launched
2,500

2,000

Production bases for materials handlingequipment and car air-conditioning
compressors established in the U.S.

Production of Type G automatic looms

Production of Type S engines started

Production of lift trucks started

1,500

Materials Handling Equipment
Business strengthened throughM&As and other schemes

Production of car air-conditioning
compressors started

1,000

5000(FY)

1927

1931

1951

1956

1961

1966

1971

1976

1981

1986

1991

1996

2001

2006

Textile Machinery

Automobile

2016

2021

2023

2031

Materials Handling Equipment

Others

1926–

1953–

1988–

2000–

[Founding period][Business diversification and scale expansion][Full-fledged global expansion][Expanding business domains utilizing strategic M&As and other schemes]

Founding period 1926–

Full-fledged global expansion 1988–

1926

Toyota Industries established to manufacture and sell Type G automatic looms.

1988

1935

Model A1 passenger car prototype completed.

1937

Automobile Department spun off and Toyota Motor Co., Ltd. (now Toyota Motor Corporation) established.

1940

Steel Production Department spun off and Toyoda Steel Works, Ltd. (now Aichi Steel Corporation) established.

Business diversification and scale expansion 1953–22011

Production outside Japan launched in earnest: Responds to an increase in demand in various countries where Toyota Industries
engages in business.

Expanding business domains utilizing strategic
M&As and other schemes 2000–
2000

Welcomes the BT Industries Group as a subsidiary to facilitate further growth of the Materials Handling Equipment Business.

2001

Takes over Toyota Motor Corporation’s industrial equipment sales division, becoming responsible for both production and sales.

2003

Production of lift trucks launched: Aimed at business diversification, the operation is started as part of new businesses to expand
the application of Type S engines.

The world’s first mass production of electric compressors commenced for the second generation of Toyota Prius, responding to anincrease in sales of electrified vehicles.

2011

1958

Agricultural machinery business launched: Commenced as part of business diversification but is forced to withdraw from thebusiness in 1966 due to inconsistency in performance and inexperience in sales.

Accelerates the establishment of plants mainly for car air-conditioning compressors and lift trucks in such emerging countries asIndonesia and Brazil.

2017

1960

Production of car air-conditioning compressors launched.

Augments the Logistics Solutions Business by welcoming Netherlands-based Vanderlande Industries and U.S.-based BastianSolutions as subsidiaries, thereby meeting rising needs for logistics efficiency and automation.

1967

The Nagakusa Plant commences production of small passenger cars to further expand business.

2021

Production of bipolar nickel-metal hydride batteries for hybrid electric vehicles launched. In 2022, the Ishihama Plant commences
operation as a battery production base.

1953

Production of Type S engines launched; assembly of automobiles launched.

1954

Toyoda de Mexico established: Toyota Industries’ first foray outside Japan, but withdrew from the country in 1961 due to changes inthe surrounding environment.

1956

Toyota Industries Report 2023

3Business Overview

CONTENTS

Promotion of ESG Initiatives

Using our resources and strengths as the foundation, we strive for growth in the Materials Handling
Equipment, Automobile and Textile Machinery businesses. At the same time, we aim to enhance ourcompetitiveness by leveraging synergies among these businesses.

Environmental Initiatives

Link toproductdetails

34–37

Contributing to a Carbon Neutral Society

38–40

Establishing a Recycling-Based Society

41–43

Reducing Environmental Risk andEstablishing a Society in Harmony with Nature

43–45

Relationship with Our Stakeholders

Materials Handling Equipment
Toyoda Precepts / Basic Philosophy

Lift Truck

Logistics Solutions

Toyota Industries plans, develops,produces, sells and provides after-sales
services for industrial vehicles centeredaround lift trucks, which capture the top
global market share*. Together withsales financing and proposals forlogistics efficiencies, we strive tomeet a variety of customer needs.

Toyota Industries works closely with subsidiaries Bastian Solutions LLC
and Vanderlande Industries Holding B.V. by leveraging each company’s
strengths to contribute to resolving customers’ logistics issues througha combination of various logistics equipment and systems.

Inside coverMessage from the Chairman,
Vice Chairman and President

1

History of Toyota Industries Group

2–3

Business Overview

4Contents

5

Relationship with Our Customers

46–47

Relationship with Our Business Partners

48–49

Relationship with Our Shareholders and Investors

Airport baggage
handling system

High-speed storage andpicking system

Value Creation

Automobile

51–55

Relationship with Our Local Communities

56–57

Corporate GovernanceCorporate Governance StructureEngineWith its strengths as a leader in safety, environment, quality,
cost and delivery among Toyota Group companies, the Vehicle
Business plans, develops and produces the RAV4 for markets
in and outside Japan.

In addition to automotive diesel engines produced under astructure ranging from planning and development to production,
we also produce gasoline engines and industrial engines.

RAV4 PHV

Diesel engine

62
62–63

Respect for Human Rights

63–65

Compliance

66–68
69

Value Creation Process

12–15

Information Security

69–70

Initiatives to Resolve Social Issues and Improve
Corporate Value

16–17

Risk Management

71–72

Toyota Industries’ Activities Related to IntellectualProperties
Directors, Audit & Supervisory Board Members,
Vice President, Senior Executive Officers andExecutive Officers

Initiatives for GrowthBusiness Activities

Gasoline engine forhybrid electric vehicles

58–61

Sustainability Implementation Structure

Tax Governance

Vehicle50

Relationship with Our Associates

Cross-Shareholdings / Internal Control System
6–11

Top Message
Electric lift truck

Materials Handling Equipment

18–23

Automobile

24–31

VehicleEngine73
74–75

Corporate and Financial Information

25

Major Bases

76–77

26

Consolidated Financial and Non-Financial Highlights

78–79

Car Air-Conditioning Compressor

Electronics and Others

Car Air-Conditioning Compressor

27–29

Consolidated Eleven-Year Summary

80–81

Toyota Industries’ car air-conditioning compressors are highly
acclaimed in terms of their reliability at high operating speeds
and quiet operation in addition to such excellent environmental
performance features as compactness, light weight and fuelefficiency. The Car Air-Conditioning Compressor Business
captures the world-leading market share in unit sales*.

Toyota Industries plans, develops and produces a wide varietyof electronics products for electrified vehicles such as hybrid
electric vehicles, as well as on-board batteries.

Electronic Devices and Other Products

30–31

Financial Statements

82–85

Corporate and Investor Information

86–87

Electriccompressor

Oxygen-supplying
air compressor forfuel cell electric vehicles

DC-DC converter

Bipolar nickel-metal hydride battery

Textile Machinery

Textile Machinery

32

Editorial policy

In aiming to realize a deeper understanding of the Toyota Industries Group among a broad spectrum of stakeholders, the Annual Report
and Social and Environmental Report have been combined into the Toyota Industries Report from the fiscal year ended March 31, 2008. Inaddition to the Toyota Industries Group’s management policies, the report provides easy-to-understand information regarding its business,environmental and social activities as well as corporate governance over the past year as well as its future direction.

Period coveredby the report

This report focuses on activities carried out in fiscal
2023 (April 1, 2022 to March 31, 2023), but also
includes some information outside this period.

Organizations
coveredin the report

Toyota Industries Corporation and its consolidated
subsidiaries

Toyoda Industries Report 2023 PDF

We undertake fully integrated operations
from planning, development andproduction to sales and after-sales
services for spinning machines that spin
twisted fiber bundles into yarn andweaving machines that weave spun yarn
into fabrics.

This PDF file is linked to related websites orvideo sharing websites .
How to use this report
Click ontorelated websites.

Air-jet loom

Ring spinning frame

Link todetails

Read the QR code using a smartphone to view related
websites.
* Requires Internet connection* Survey by Toyota Industries Corporation

4

Promoting Environmental Management

Toyota Industries Report 2023

Referenceguidelines• Global Reporting Initiative (GRI) Standard• ISO 26000• Japan’s Ministry of the Environment Environmental Accounting
Guidelines (2005 Version)• Japan’s Ministry of the Environment Environmental Reporting
Guidelines (2018 Version)• International Integrated Reporting Framework by IFRS Foundation

Cautionary Statement with Respect to Forward-Looking Statements
This report contains projections and other forward-looking statements that involve risks and uncertainties. The use of thewords “expect,” “anticipate,” “estimate,” “forecast,” “plan” and similar expressions is intended to identify such forwardlooking statements. Projections and forward-looking statements are based on the current expectations and estimates of theToyota Industries Group regarding its plans, outlook, strategies and results for the future. All such projections and forwardlooking statements are based on management’s assumptions and beliefs derived from the information available at the time ofproducing this report and are not guarantees of future performance. Toyota Industries undertakes no obligation to publicly
update or revise any forward-looking statements in this report, whether as a result of new information, future events orotherwise. Therefore, it is advised that you should not rely solely upon these projections and forward-looking statements inmaking your investment decisions. You should also be aware that certain risks and uncertainties could cause the actualresults of Toyota Industries to differ materially from any projections or forward-looking statements discussed in this report.
These risks and uncertainties include, but are not limited to, the following: (1) reliance on certain customers, (2) productdevelopment capabilities, (3) intellectual property rights, (4) product defects, (5) price competition, (6) reliance on suppliers ofraw materials and components, (7) environmental regulations, (8) success or failure of strategic alliances with othercompanies, (9) exchange rate fluctuations, (10) share price fluctuations, (11) effects of disasters, power blackouts and otherincidents, (12) latent risks associated with international activities and (13) retirement benefit liabilities.

The fiscal year ended March 31, 2023 is referred to as fiscal 2023 and other fiscal years are referred to in a corresponding manner.

5