Consolidated Financial and Non-Financial Highlights

Non-Financial Information (Environment)(FY2019)

Energy Consumption (Consolidated)

CO2 Emissions (Consolidated)

17,514 TJ

941,371 t-CO

4,620 km

Discharge of Treated Wastewater(Consolidated)

Raw Material Consumption (Consolidated)

Waste Generation (Consolidated)

2,463 km830,588 t

110,466 t

Energy Consumption (Consolidated)

CO2 Emissions (Consolidated)

Water Consumption (Consolidated)(TJ)(t-CO2)

(km3)

2

3

20,0001,000,000
16,52016,939Water Consumption (Consolidated)

17,51415,000939,753

913,123

941,3715,000

800,000

4,000

600,000

3,000

400,000

2,000

200,000

1,000

4,661

4,873

3

Strategies and Businesses
Steadily Carry Out Growth Strategies by
Leveraging the Strengths ofEach Business Field
Relevant sustainable development goals(SDGs) for Toyota Industries

4,620

10,000

5,000

0

0

0
2017

(FY)

2018

2019

(FY)

2017

2018

2019

2017

2018

2019

Discharge of Treated Wastewater(Consolidated)

Raw Material Consumption (Consolidated)

Waste Generation (Consolidated)

(km3)

(t)

(t)

1,000,000

150,000

2,500

2,370

2,407

2,463

790,022

830,5882,000

800,000

1,500

600,000

90,0001,000

400,000

60,000500

200,000

30,000712,293

0

0
2017

(FY)

2018

2019

(FY)

122,521120,000

110,466
87,917

0
2017

2018

2019

(FY)

2017

2018

PRTR* Law Designated Substances(Japan Consolidated)

Emissions/Transfer of PRTR Law DesignatedSubstances (Japan Consolidated)

VOC*2 Emissions (Consolidated)

(t)

(t)

(t)

2,000

600

1

1,500

1,579

1,500

571

500
1,447

1,379

1,000

439
400

1,453

900

2019

*1: Short for Pollutant Release and Transfer Register, the PRTR law is a scheme whereby businesses
measure the release and transfer of PRTR designated pollutants and report their performance to thegovernment. The government then compiles this data and releases it to the public.

Toyota Industries Report 2019

(FY)

P22–29Business Activities

300

P30–4200
2018

Special Features

600

100

2017

P14–21

1. Providing Solutions to Customers’ Logistics-Related Issues—Efforts in the Area of Airport Logistics Solutions—
2. Car Electronics Technology to Help Promote the Use of a Vehicle as a Power Source

3000

Top Message
1,369

1,200

500

(FY)

1,460

2019

430

200

12

(FY)

2017

2018

2019

(FY)

2017

2018

2019

*2: Short for Volatile Organic Compounds

13Top Message

Top Message

Formulating a New Vision for
the Next Decade and Seeking
Sustainable Growth inHarmony with SocietyOver the past decade, the Toyota Industries Group has steadily
undertaken initiatives for sustainable growth. Accordingly,
as a confirmation of our aspirations toward the year 2030,
we have revised the existing Vision 2020 and formulated Vision 2030.
In this section, President Akira Onishi provides an overview of the
new vision and describes specific initiatives for its achievement.
Company Introduction

Akira Onishi President

1 Review of Vision 2020

Business Results of thethe world’s leading manufacturer of lift truck
Handling
Equipment
Corresponding Period
attachments; Taiwan-based Tailift Co., Ltd., a85%
50%(FY2019)(FY2013)lift truck manufacturer possessing strengths in
Operating profit 200.0
models targeting emerging countries; the sales(¥ Billion)
134.6
Over 3,000.0
financing operations for materials handling(127.3)Operating profit
77.0
equipment of Toyota Motor Corporation (TMC)
122.9
Over 2,500.0(IFRS basis)in the United States; and U.S.-based Bastian2,250.4
2,214.9
Solutions LLC and Europe-based Vanderlande
Net sales
Textile Machinery, etc.
(1,675.1)
1,615.2
Materials
Industries Holding B.V., both of which provide
Car Electronics,
Foundry, etc.
Handling
logistics solutions.
Equipment
EngineVehicleThese initiatives have yielded steady66%
37%
Car Air-Conditioning(FY2019)(FY2013)Compressor
increases both in net sales and profits
Net sales
Materials Handlingsince fiscal 2013. With regard to business
Equipment
composition, the ratio of the mainstay Materials
2017
2019
2021(Forecast) (Numerical targets)
FY2013Generally Accepted Accounting
International Financial
Handling Equipment Business nearly doubled
Principles in Japan (JGAAP)
Reporting Standards (IFRS)
in terms of net sales.
As a first step, we had concentrated on making investment in establishinga required growth structure in each business, including the Materials Handling
Equipment Business, in preparation for future growth. Going forward, we will
harvest these “crops” and turn them into greater earnings.
Materials

Major Initiatives in Each Business Field

To contribute to an enriched
lifestyle and comfortable society

Targets

Materials Handling Equipment/
Logistics• Net sales: Over ¥3 trillion• Operating profit: Over ¥200 billion (7%)
• ROA*1: 5%, ROE*1: 10%

Car Air-Conditioning
Compressor

Solution

Key Components

MobilityNew
Product
New
Product

New
Product

New
Product

Value
Chain

3Es (Energy, Environmental protection and Ecological thinking) <Technological innovation in environment/energy areas><Expansion of value chain>

World Market<Business development in world markets>

Car Electronics
PCU
components / assemblies

Electric compressors

Production of HVs

Clean diesel engines

Hybrid system for construction machinery

Air compressor for FCVs

Production lines with highenvironmental efficiencies

General-purpose industrial
engines without DPF

Acquisition of dealers in Europe
and the U.S.

In-house development of
inverters for electrified vehicles

Special-edition Vitz

Increase in internallysourced parts

Plastic glazing

Turbochargers

Acquisition of Cascade

Textile Machinery

Others

JAT810 air-jet loom

Automotive
batteries
CFRP

Acquisition of Uster
Technologies

Acquisition of TMC’s sales financing operations formaterials handling equipment in North America

New
Product

Value Chain

EngineFC lift trucks, LiB lift trucks

3Es

*1: B
 ased on acquisition prices for investment
securities

VehicleFinancial Section /Corporate Information

Vision 2020

Promotion of ESG Initiatives

Toyota Industries formulated Vision 2020 in October 2011 as a roadmap toenter the next stage of growth while maintaining its lean corporate structure thatwas created during the global recession triggered by a financial crisis.
Vision 2020 was based on a robust strategy comprising three action
themes. These were: 1) development of eco-friendly, energy-saving products
based on the keywords of 3Es (Energy, Environmental protection and Ecologicalthinking) in the Materials Handling Equipment Business, automobile-related
businesses and Textile Machinery Business; 2) enhancement of our value chain
in seeking to provide convenience to customers in various fields, including
after-sales services and sales financing; and 3) business development in world
markets to deliver products and services to customers worldwide. Based onthese themes and also through M&As, we had endeavored to set up a structurenecessary for future growth.
In promoting these initiatives, we positioned the Materials Handling
Equipment Business as our mainstay business and expanded our value chain
through M&As. Specifically, we acquired U.S.-based Cascade Corporation,

Strategies and Businessesn Major Initiatives and Challenges

World
MarketSales expansion in emerging countries

Business expansion in emerging
countries

Business reinforcement in South America

Business reinforcement in China

Support for development
and production preparations
for the RAV4 globally

Launch of production in
India

Sales reinforcement inNorth America
Sales reinforcement inEuropeAcquisition of Tailift
Acquisition of Bastian and Vanderlande

14

Toyota Industries Report 201915

Top Message

2 	Reasons for Revising Vision 2020 into the Toyota

Industries Group Vision 2030

Our Vision 2030 shows what we should be and which direction we should takeover the medium to long term, with its basic concept remaining the same as
Vision 2020. Using Vision 2020 as a cornerstone, we added necessary updates
to accommodate changes in the internal and external environments.

Our policy for promoting business in the future remains unchanged, namely
retaining our origin in the Textile Machinery Business and promoting theautomobile-related businesses and Materials Handling Equipment Business intandem. Under this policy, we will proactively take on yet other challenges ofcreating new value that anticipates the needs of customers around the world.

n Overview of the New Vision
The new vision aims to “contribute to making the earth a better place to live,
enrich lifestyles, and promote a compassionate society by supporting industrial
and social infrastructure around the world through the continuous supply of
products/services that anticipate customers’ needs.”
Toyoda Precepts (corporate creed)eMakr place toa bette
h
t
r
a
the e

Create new values by being studious and creative

Automobile

Toyota Industries Report 2019

Materials
Handling
Equipment /Logistics

Financial Section /Corporate Information

16

compa
ssion
ate s
ocie
ty

d social infrastructure around theustrial an
ort indwo,” “reliable/safe, comfortab
s
n
o
i
Supp
s
s
le” an rld
i
m
e
d “s
ro
e
z
/
mar
ean
t”
“Cl

n Our Aspirations for the New Vision
Since its founding in 1926, Toyota Industries has engaged in the Textile
Machinery Business. Beginning from the 1950s, we constantly took on
new challenges to ensure the stability of our management foundation
by extending our reach into such business fields as engine production,
vehicle assembly and the development and production of lift trucks
and car air-conditioning compressors. At the same time, we alsocommenced full-scale operations outside Japan. Later in the 2010s,
we promoted a “concentration and selection” strategy with a focus on
ensuring “affinity” with the Materials Handling Equipment Business andautomobile-related businesses. Throughout our history of evolution
and development spanning more than 90 years, the founding spirit
encapsulated in the Toyoda Precepts (corporate creed) has been a
constant source of support and inspiration for our risk-taking challenges
into new businesses and markets.

live, enrich lifestyles, and promote a

Promotion of ESG Initiatives

n Basic Concept

Founder Sakichi Toyoda

Take on challenges and enter into new businesses
Textile Machinery
TPS

Team

Manufacturing foundation strength

Toyoda Precepts

n Our Approach to Realizing a Sustainable Society
Since its founding, Toyota Industries has constantly endeavored to “contributeto regional living conditions and social prosperity” as one tenet under its Basic
Philosophy that embraces the Toyoda Precepts. As our approach correspondswith the objective of the SDGs, we clearly state the concept in the new vision
and will seek sustainable growth in harmony with society.
Particularly in the area of the environment, we have been working to develop
eco-friendly products to help realize a zero CO2 emissions society by 2050.
In recognition of our efforts in this area, we received A-list ratings in both theStrategies and Businesses

3 Vision 2030

Carrying out the spirit of founder Sakichi Toyoda,• Always be faithful to your duties, thereby contributing to the Company and tothe overall good.
• Always be studious and creative, striving to stay ahead of the times.
• Always be practical and avoid frivolousness.
• Always strive to build a homelike atmosphere at work that is warm andfriendly.
• Always have respect for God, and remember to be grateful at all times.

Company Introduction

We had worked to attain steady growth under Vision 2020. Before reaching its
final year in 2020, we started to consider updating the vision with a view toward
the next decade.
In recent years, considerable changes have occurred in the external
environment, leaving a significant impact on our business strategy. For example,
we have seen a substantial swell of change of the Fourth Industrial Revolution,
driven by a rapid rise in the industrial use of artificial intelligence (AI), big data,
the Internet of Things (IoT), robotics and other cutting-edge technologies. On
the risk front, we can no longer ignore the heightened geopolitical risks as seenin frequent trade disputes and regional conflicts.
Another change involves expanding social demands for non-financial
activities of companies to deal with environmental, social and governance (ESG)
factors, now deemed integral to corporate growth, and to achieve the United
Nations’ Sustainable Development Goals (SDGs) representing 17 goals and
169 targets for a sustainable world. These social demands have prompted
companies to alter their corporate behavior.
Meanwhile, we have seen several changes in business operations within
Toyota Industries as well. These changes, including the growing importanceof the Logistics Solutions Business within the Materials Handling Equipment
Segment and focused development of environment-related technologies ineach business, have also necessitated the revising of Vision 2020.

Toyoda Precepts (Corporate Creed)

17 Goals of SDGs

17

Top Message

climate change and water security categories of the CDP*2 surveys in 2018.
Taking the opportunity, we will continue focusing on activities for conservation of
the global environment.
*2: A
 n international not-for-profit organization established in the United Kingdom in 2000 to encourage companies andgovernments to reduce greenhouse gas emissions, conserve water resources and protect forests

Products and Services of theMaterials Handling Equipment
Business

Value chainn Targets of the New Vision

Targets for FY2031*3: Based on acquisition prices for investment securities.

1) Materials Handling Equipment BusinessLooking at the environment surrounding the Materials Handling Equipment
Business, we expect an increase in logistics volume driven by global economic
expansion and growing needs for greater logistics efficiencies arising from labor
shortages in developed countries and surging labor costs in emerging countries.
In the Materials Handling Equipment Business, we engage in a “flow-type”
business and “stock-type” business. The former refers to a “one-off” model,
which in our case means the straightforward sales of lift trucks and otherequipment. The latter is a recurring revenue model, which at Toyota Industries
involves its value chain and logistics solutions, accounting for 60% of the total
sales of the Materials Handling Equipment Business. Engaging in these two
types of operations is one characteristic of our business in this area, whichmakes us less vulnerable to the impact of an economic slowdown and allows
us to achieve relatively stable growth.

18

Toyota Industries Report 2019

Sales financing
Shuttle-type automatedstorage and retrieval
system

SorterSoftwareTransporting andloading/unloading

Automatic guided
vehicle (AGV)
Automated storage
and retrieval system

Automated lift truck

Attachments andother components

Accepting deliveries
and shipping

Storing

Electric lift truck
Reach-type
electric lift truck

Warehouse truck

Sorting
Internal-combustion lift truck

n Strengths in This Business and Initiatives for Growth
In the Lift Truck Business, we seek to achieve business expansion throughcollaboration with the Logistics Solutions Business. We aim to do this byutilizing the comprehensive strengths of our entire value chain encompassing
both “hardware” (sales of a broad lineup of products as well as attachments
and other components) and “software” (sales and service networks, IT-based
after-sales services, sales financing and the capability to provide solutions).
In the Logistics Solutions Business, while giving consideration to ourstrengths in offering an extensive equipment lineup, an ability to create systems
and a global network, we have clearly defined the roles among Bastian,Vanderlande and Toyota Industries and aim to align and maximize synergies
among the three companies.
We will deepen the collaboration between the Lift Truck Businessand Logistics Solutions Business to attain the top position in terms ofcomprehensive strengths.

2) Automobile-Related Businesses (Car Air-Conditioning Compressor)
We anticipate sustained growth of the car air-conditioning compressor market inline with expanding automobile sales and an increase in the number of vehicles
equipped with an air conditioner. Even though we expect car electrification tocontinue over the medium to long term, there is an uncertainty about the speed
at which this will proceed because many factors will affect the advancement.
As such, we have increased our readiness to flexibly respond to any changes inthese circumstances.
More specifically, we are promoting the differentiation of our products
as early as in the development stage to match the needs of every type ofelectrified vehicles, from hybrid vehicles (HV) to plug-in hybrid vehicles (PHV),
electric vehicles (EV) and fuel cell vehicles (FCV). In terms of production, we are

Financial Section /Corporate Information

In the following sections, I would like to describe initiatives to be undertaken in
respective businesses toward the realization of Vision 2030.

Lift trucks andother equipment

Logistics solutions

Promotion of ESG Initiatives

4 Medium-Term Initiatives in Each Business

Fleet management system
Warehouse management system
Telematics

Strategies and Businesses• Net sales: Over ¥4 trillion• Operating profit: Over ¥400 billion• Operating profit margin: 10%• ROA*3: 5% or more, ROE*3: 10% or more

After-sales services
Spare parts

Company Introduction

Numerical Targets of the
New Vision

Our targets under Vision 2030 for fiscal 2031 include net sales of over ¥4trillion, operating profit of over ¥400 billion and an operating profit margin of
10%. Our envisioned business composition in fiscal 2031 is almost the sameas the current one, with the ratio between the Materials Handling Equipment/
Logistics Solutions businesses and automobile-related businesses standingat 2:1. This is because we seek growth in both segments simultaneously. In
the Materials Handling
Equipment/Logistics
Solutions businesses, thelogistics solutions field
will drive strong growth.
In the automobile-related
businesses, we aim toincrease our position in eachfield and achieve growth.
Additionally, while steadilystrengthening and expanding
existing businesses, we plan
to enter into various fields,
to augment either new or
peripheral areas to existing
businesses. By doing so,
we will proactively plant newseeds for future growth.

19Top Message

in the process of setting up a structure to flexibly accommodate changes in
production volumes of compressors for internal-combustion vehicles and thosefor electrified vehicles.

n Medium- to Long-Term Initiatives

Battery
Cooling

Hydrogen circulation
Electronicpump (FCV)component
Cooling

EV
Oxygen-supplying
air compressor (FCV)PHV
HV

New RAV4

4) Textile Machinery Business
Turbocharger(mounted on GD diesel engine)

20

Toyota Industries Report 2019

For our mainstay air-jet looms, we will move forward with sales expansion byleveraging their excellent quality. Along with these efforts, we will increase theirapplications in the field of industrial textile products and promote differentiation

2) Efforts concerning Corporate GovernanceCorporate governance must take hold and properly function within Toyota
Industries. Under this belief, we have steadily and consistently made efforts
to help all members, from top management to individual employees, tounderstand and instill the importance of corporate governance, rather thansimply introducing a related structure and rules for the sake of formality.
Outside directors are also making a significant contribution to the
management of Toyota Industries, as they provide appropriate and effective
advice at the meetings of the Board of Directors based on their abundant
experience. With regard to business performance, we have determined to takea longer view so as to avoid short-sighted management decisions leaning too
much on near-term targets. Similarly, we have cultivated relationships withbusiness partners and other stakeholders from a long-term perspective toachieve sustainable corporate growth. This, in turn, has enabled us to provide
returns to shareholders in a constant and stable manner.

Financial Section /Corporate Information

TNGA gasoline engine

In the fields of vehicles, engines and car electronics, we aim to become a multisupplier having top-notch competitiveness in every field, from vehicle assembly
to components.
As for vehicles, we received the Toyota Quality Control Award from TMC
for seven consecutive years. While demonstrating its top-level quality, cost anddelivery (QCD) capabilities, this business will continue to serve as a foundationof Toyota Industries’ manufacturing operations. Additionally, we have alreadyestablished a structure to retain our competitive edge for the next 30 years as
we completed plant renovations last year. In the future, we will reinforce productplanning and development capabilities on top of our manufacturing capability
and seek to lead the production of compact sports utility vehicles (SUV) within
the Toyota Group.
For engines, we aim to increase our involvement in gasoline engines in
addition to our existing mainstay diesel engines. At the same time, we will
strengthen the competitiveness of our turbochargers and increase models fittedwith them.
In the field of car electronics, we will strengthen each function, fromplanning and development to production, in order to link the trend toward car
electrification to our business growth and contribute to the creation of a lowcarbon society.

Toyota Industries seeks to contribute to society 20 to 30 years into
the future while sustaining our own growth. From this medium- tolong-term perspective, we revised our vision.
As mentioned earlier, our efforts for sustainable growth are
twofold. On one hand, we will reinforce the competitiveness ofexisting businesses on the basis of our strengths in manufacturing. On the other
hand, we will plant seeds and grow them into new businesses to underpin our
expansion in the future. For these efforts, we will continue to make proactive
investment in R&D and other relevant fields.
Among existing businesses, we will focus on logistics solutions andenvironment-related technologies as our priority areas for future growth. We
anticipate continued growth in needs for greater logistics efficiencies andsteady progress in electrification owing to the growing importance of curbing
global warming. In the field of logistics solutions, we have already establisheda structure to pursue growth through synergies among Bastian, Vanderlande
and Toyota Industries. In responding to electrification, we will differentiate our
products based on our broad range of technologies to satisfy the needs ofrespective types of electrified vehicles.
Capturing changes in society as a driving force, we will strive to strengthen
each business and utilize our core technologies to expand our businessdomains.

Promotion of ESG Initiatives3) Automobile-Related Businesses (Vehicle, Engine and Car
Electronics)

1) Direction of Our Business

Strategies and Businesses

Electric
generation

FCV

5 Basic Management Concept

Company Introduction

As electrification and automation progress, the number of heat-emitting
components is expected to increase. Taking advantage of the excellent cooling
performance of our products, we will concentrate on product development
geared toward satisfying such needs. Our policy also focuses on expanding
our business domain into drive system components based on our coretechnologies.

based on their superior environmental performance. We will also
pursue technological synergy with Uster Technologies AG, aconsolidated subsidiary manufacturing yarn quality measurement
instruments, to improve the competitiveness of our products.

Currently, Toyota Industries is implementing initiatives to encourage individual
employees to fully understand the concepts behind the new vision and put this
into practice in their respective positions. Determined to meet the expectationsof our stakeholders, I will work along with all employees to achieve growth byfulfilling the vision to contribute to society.

21Special
Feature1

Providing Solutions to Customers’
Logistics-Related Issues—Efforts in the Area of Airport Logistics Solutions—n Toyota Industries’ Main Logistics Systems
Equipment to Date

Recognizing future needs for logistics automation as business
opportunities, Toyota Industries extended its reach into the logistics
systems business, an area peripheral to lift trucks. Our Lift TruckBusiness allowed us to capture automation needs for greater efficiencies
in warehouse logistics. Based on the experience and know-how
accumulated in improving production processes within our own plants aswell as customers’ logistics operations, we launched the development of
AGVs and successfully initiated sales in 1986. Our extensive sales andafter-sales service networks in the Lift Truck Business in Japan have also
underpinned growth of the logistics systems business.

Changing Environment for
Airport Logistics

AGV for containersn Toyota Industries’ Position in the Logistics System
Supplier Industry
1.
2.

Toyota Industries Group3.
4. Vanderlande
5.
6.
7.
8.
9.
10.
11.
12.
13.
14. Toyota Industries Corporation
15. Bastian Solutions
16.
17.
18.
19.
20.

Net sales

Source: P roduced by Toyota Industries based on the Top 20 Worldwide
Material Handling Systems Suppliers in 2019 by Modern
Materials Handling magazinen Number of Air Passengers in the World(Million persons)
4,500

Financial Section /Corporate Information

The number of air passengers and the volume of air cargo have grown
dramatically in line with economic growth mainly in Asia and increasingly
globalized economic activities. Amid this marked growth, various
systems (check-in systems; baggage handling systems (BHS) covering
everything from baggage check-in to baggage claim; and conveying andstorage systems for baggage and cargo) used in airports have taken
on additional significance and now have a greater influence over theoperation of airports and how passengers evaluate them. Corresponding
to these changes in the environment, we are addressing the needs forlogistics efficiencies at airports, with Vanderlande taking the lead.

Automated storage
and retrieval system

Simple AGV

Promotion of ESG Initiatives

The scale of our Logistics Solutions Business, combining the existing
logistics systems business of Toyota Industries, Netherlands-based
Vanderlande Industries Holding B.V. and U.S.-based Bastian Solutions
LLC, boasts one of the largest in the world. The three companies
have different strengths. Vanderlande demonstrates comprehensive
strengths encompassing the design of logistics systems for airports andwarehouses, development of associated equipment and provision ofafter-sales services. Bastian has an outstanding capability to develop
software programs that satisfy a variety of logistics needs, while Toyota
Industries has strengths in the development of automation systems
for materials handling equipment. Through the collaboration of thethree companies, we will promote dynamic business development as alogistics solutions provider.

Low automatic
towing vehicle

Strategies and Businesses

Strengths of theWorld’s Leading Logistics Solutions Provider

AGV

Company Introduction

Toyota Industries’ Logistics Solutions Business provides total solutions to logistics issues. Besides
the land and sea domains respectively covering distribution centers and automatic guided vehicles(AGV) for use at seaports, needs for such solutions are growing rapidly in the air domain centeredaround airports. This Special Feature highlights how we muster the strengths of the entire Toyota
Industries Group, achieve business growth by striving to offer solutions to airport logistics issues
and aim to contribute to society.

Past Efforts in the
Logistics Solutions Business

4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
(CY) 98

00

02

04

North America

06

08Europe101214Asia/Pacific

16

18
Other

Sources: J apan Aircraft Development Association (JADC), International
Civil Aviation Organization (ICAO) and International Air
Transport Association (IATA)

22

Toyota Industries Report 201923

Toyota Industries’ Airport Logistics Solutions⑦Loading into containers (make-up)②Passenger security check

Our conveyor systems thattransport checked-in baggage tocontainers are highly acclaimed bycustomers for their maintainability
and reliability. To reduce work load,
we also develop and sell loading
assisting equipment.

We respond to enhanced
security checks and ensure
higher procedural efficiencies
and less stress among
passengers through automation.

⑨Unloading

We facilitate quick
check-in proceduresby accommodatinga broad range ofcheck-in services fromconventional check-in
counters to self-service
flight and baggage
check-in systems.

⑥ Storing and sorting⑤BHS utilizing autonomous AGVs

Depending on the time between check-in
and flight, we either keep baggage
temporarily in an automated warehouseor directly sort and transport baggage on
conveyors. Automation reduces
operational costs and sorting errors.
Besides conventional belt conveyors, weoffer many options, including tray, tilt andvertical types, to suit customers’ needs.

A revolutionary solution replacing
conventional conveyor systems, this BHS
utilizes AGVs with transporting and sorting
functionality and can flexibly accommodatechanges in needs, including varying
baggage volumes and route changes.

③Baggage security checkWe reliably confirm the safety ofchecked-in baggage with theindustry’s highest-level processing
capacity.

④ Conveying of baggage

Company Introduction

Our conveyors transport
baggage unloaded from thearriving aircraft to the baggage
claim or to a connecting flightafter performing required checkand other procedures.

①Flight and baggage check-in

We offer optimum systems, from belt
conveyors to high-speed tray
conveyors, matched to customers’conditions and demands in terms of
conveying speed, processing capacity,
baggage shapes, handling space,tracking and other functionality.

⑪ Cargo handling⑧Towing containers, etc.

Our conveyors used in baggage
claim excel in durability andreliability and have been adopted
by many airports.

Our towing tractors areused for towing containers
in airports in Japan, Asiaand across the world.

* Survey by Toyota Industries Corporation

Logistics plays diverse and broad roles in airports. It begins the moment baggage or cargo
is checked in, loaded onto aircraft and received at their destination, encompassing aspects
from conveying and sorting to baggage security checks. Worldwide growth in the number ofpassengers has led to an increase in the number of flights, tighter flight connections and lesstime given to aircraft before a return flight. These, in turn, have made logistics efficiencies, speed
and accuracy all the more important. Smooth operation of an airport now necessitates thebuilding of a comprehensive logistics system that can meet these requirements.

Self-service check-in

In a broad range of airport logistics, Vanderlande outperforms industry peers in the area ofthe development of efficient BHS that can also accommodate large airports. Vanderlande’s
customers are more than 600 airports around the world. Its BHS, which is installed in 14 out of
the 20 busiest airports ranked by the annual number of passengers, have been highly acclaimed
by customers. Vanderlande’s strengths lie in its abilities to offer an advanced level of automationof the entire process from check-in to baggage claim and to respond to the demand for higher
efficiencies. The world’s leading airports, including Heathrow Airport in the United Kingdom,
Hartsfield-Jackson Atlanta International Airport in the United States and Hong Kong International
Airport, have adopted Vanderlande’s large systems.
Toyota Industries also develops and produces towing tractors that convey baggage andcargo containers to and from aircraft, which are used in airports in Japan, Asia, the UnitedStates and in other parts of the world. By combining these tractors with BHS, we can now offer
broader, total solutions for baggage logistics at airports.
Additionally, leading global postal/parcel service providers have been constructing large-scale
logistics air hubs near airports. We are working to expand the business in this area as well.

24

Toyota Industries Report 2019

BHS (Heathrow Airport)

Towing tractor

Autonomous driving test of towing tractors

Financial Section /Corporate Information

Toyota Industries Group’s Strengths in
Airport-Related Logistics

Vanderlande, Bastian and Toyota Industries have held repeated and active discussions toclarify how we collaborate and which direction we will take in conducting sales activities.
In terms of development, we have made an important strategic decision to makeconcerted efforts in the area of automation, for which needs are expected to grow further,and launched activities accordingly.
In March 2019, as an effort to realize practical applications in progress, we carriedout an autonomous driving test of our towing tractors jointly with All Nippon Airways
Co., Ltd. at Kyushu-Saga International Airport. The test was a Group-wide effort,
combining towing tractors developed and manufactured by a subsidiary in Italy with ourtechnology and knowledge for autonomous driving obtained through the experience in
AGV developments. We have also been proceeding with the development of automatedlift trucks, anticipating their use in airports as well as various other indoor and outdoor
applications. In addition, FLEET, Vanderlande’s autonomous BHS, has gone into
operation in Rotterdam The Hague Airport. It can flexibly accommodate layout changes
and system expansions depending on the baggage volume. The system is also being
operated on a trial basis at the Hong Kong International Airport and the Dallas/Fort WorthInternational Airport in the United States. These automated vehicles and systems also
integrate sensing systems and image processing systems, which Toyota Industries hasdeveloped in automating lift trucks.
In the area of airport logistics solutions, which will gain additional importance inthe future, we will leverage the experience, know-how and technology of the threecompanies to help resolve issues related to airport logistics by globally offering solutions
that are friendly to both airport users and airport staff and seek further business growth.

Promotion of ESG Initiatives

Future Business Development Leveraging the Group’sComprehensive Strengths

Roles of Logistics in Airports

Strategies and Businesses⑩Baggage claim

Lift trucks for which Toyota Industries enjoys
the world’s top share* are used to load/unload
and transport baggage and cargo in airports
for either indoor or outdoor applications. In
addition to internal-combustion and electric lift
trucks, the use of fuel cell lift trucks is increasing.

Outdoor test of automated lift trucks

FLEET in live operation

25

Car Electronics Technology to Help Promote
the Use of a Vehicle as a Power Source

Fan
100W

Industrial
refrigerator
700W

Dust-/fireproof shutter
1.5kW

Air conditioner
2.2kW

Refrigerator
300W

Water-supply
pump
10kW

global market
share of45%
■ Shipment Volume of DC-AC Inverters (60W to 1.5kW)

Industrial vacuum cleaner
Water pump
3.7kW
5kW

100V appliances
Electric kettle
1.3kW

Charging
mobileRice cooker
phones
1.1kW
30W
Television 300W

No. 1

*2: Survey by Toyota Industries Corporation

Multilevelcar park
4kW

Heat pump
3.2kW

Industrial rice cooker
2.7kW

1.5kW

Elevator
5kW

Built-in electriccooking stove
5kW
Power consumption

5

Accumulated totalof 29 million units

25
20

3

15
2
10
1

5

4WD rear inverter
mounted in the Prius

On-board charger
mounted in thePrius PHV

DC-DC converter
mounted in the Prius

0(FY) 01

06

11

16

Accumulated total

19
Annual shipment

Sub-stand Main control standCharging stand for
PHVs and EVs

Note: On June 18, 2019, accumulated production exceeded 30 million units.

The Car Electronics Business Satisfying Car
Electrification Need at a Higher Level
The beginning of Toyota Industries’ Electronics Businessdates back to the 1960s when we started the development
and production of inverters, controllers and other electronics
products for the Lift Truck Business, in which the need forelectrification was already rising. The power electronics
and power semiconductor technologies, which we haveaugmented through the development of electric lift trucks,

26

Toyota Industries Report 2019

Jun Kumeno

General Manager, Business Planning
Department, Electronics Division(As of March 31, 2019)

have been utilized in the subsequent development of
automobile-use products.
Vehicle-mounted products must offer the levels of
quality and durability necessary to properly function over awide range from low to high temperatures and under harshusage conditions involving vibrations, rainwater and dust.
We work to ensure the required performance by leveraging

Financial Section /Corporate Information*1: Survey by Toyota Industries Corporation

30

4

0

Besides DC-AC inverters, Toyota Industries develops
and produces a range of electronics products. These
include DC-DC converters that convert the high voltage ofvehicle batteries into a lower voltage level to feed power tosuch devices as wipers and lights; rear inverters to provide
a 4WD option for electrified vehicles; and on-board chargers
and charging stands for PHVs and EVs. These products
satisfy varying needs related to the electrified vehicles ofautomakers around the world, including Toyota Motor
Corporation (TMC).

Promotion of ESG Initiatives

A high-capacity battery is used to operate an electrified
vehicle, and it has been attracting a great deal of publicattention for its additional use as a power source.
In 1995, Toyota Industries rolled out an on-board DC-AC
inverter that converts DC from the vehicle-mounted battery
into 100V AC. This was the first DC-AC inverter in the world
to be mounted at the time of vehicle assembly*1.
In 2001, we released another model for HVs and otherelectrified vehicles with a maximum output of 1.5kW,
which allows the use of a broader range of home electric
appliances from electric cooking tools to refrigerators andtelevisions.

200V appliances

Accumulated total (million units)

DC-AC Inverters Enabling Outdoor
Use of Various Home Electric Appliances

our strengths cultivated through the development of various
key components for automobiles. We also utilize our knowhow from the vehicle assembly business to create products
optimally designed for mounting in vehicles.
Building on these strengths, we have developed DCAC inverters with improved resistance against heat andvibrations and a better ability to shield electromagnetic
noise. Since launching the first product, we have maintained
the world’s No. 1 market share*2.

Strategies and Businesses

Car electrification is progressing in line with the enforcement of more stringent environmental
regulations worldwide and higher environmental consciousness among customers, asevidenced by the widespread use of hybrid vehicles (HV), plug-in hybrid vehicles (PHV),
electric vehicles (EV) and fuel cell vehicles (FCV). This Special Feature presents some of ourpower source devices that utilize the power source functionality of electrified vehicles to bringconvenience, joy and a sense of security to customers.

Company Introduction

Evacuation shelter without power(2018 Hokkaido Eastern Iburi Earthquake)© K.K. Kyodo News/amana images

Annual shipment (million units/year)

SpecialFeature2

Expanding Applications of Power Source Technologies
DC-AC inverters, which had mainly been used in outdoor
recreational activities, have drawn much public recognition as
an emergency power source after the 2011 Great East Japan
Earthquake. Back then, electrified vehicles were used as a
power source to charge mobile phones and supply power for
lighting and heating at evacuation shelters and homes.
Toyota Industries has since stepped up its development
efforts so that our technologies and know-how can help

people during a disaster and at various
other occasions. At the same time, we have proactively
engaged in discussion with universities, government agencies
and other companies as an effort to promote the use of avehicle as a power source in a variety of applications.
In the following sections, we provide three examples of
product development initiatives utilizing our power source
technologies.

27

特集 2

Drill at Toyota Industries for cooking andserving meals in a disaster

Initiative 1

Elevator

Single-phase (AC 100V, 1.5kW)
Threephase
three-wire(AC 200V,
9kW)

1.5kW

1.5kW

1.5kW

1.5kW

V2H
Initiative 2

Toyota Industries develops and sells charging stands for
PHVs and EVs. By applying the technology used in theseproducts to bridge an external power source and a vehicle,
we have developed a vehicle-to-home (V2H) system*3 toachieve a two-way power supply. The system accumulatesa surplus of electricity generated by home solar panels
or lower-priced nighttime electricity in a vehicle and feeds
it back to a household when necessary. It can optimize
household power consumption or serve as an emergency
power source in a disaster. We are also developing
a solution that can be linked to a home solar power
generation system, and in anticipation of future partnerships
with power companies, a software program to optimize thesupply and demand balance of electricity.
Building on the development of the V2H system,
we intend to expand our business field from solely
feeding power to vehicles to optimizing the charging and28

Toyota Industries Report 2019

Buildings

Biomass power
generation

Thermal power
generation

Factories

Houses

Initiative 3

Converting High Power Output of a Fuel Cell (FC) Bus to Lower Power Output for
Use as a Power Source for Evacuation Shelters or at Outdoor Events
We have developed and released a vehicle-to-load (V2L)
system*5 that uses the power generation function of an FC
bus to supply electricity externally. This system can feed
power simultaneously through six 100V 1.5kW outlets,
equivalent to about four to five days’ worth of powerusage*6, which allows its use as a power source at outdoor
events or for evacuation shelters.
Our V2L system is compatible with the SORA FC bus,which was released by TMC in March 2018 and has been

already adopted by the Bureau of Transportation of theTokyo Metropolitan Government and other private-sectorbus operators.
Toward the year 2020, we anticipate more than 100
additional SORA FC buses will be on the road, including
those required for the 2020 Tokyo Olympic and Paralympic
Games, and will be utilized in various situations.
*5: Systems and equipment designed to use the power accumulation and generation
capabilities of HVs, PHVs, EVs and FCVs to feed power to electric appliances*6: Calculated by using a power use estimate of about 50 kWh/day (using lighting for six
hours/day)

Evacuation shelters,
school gymnasiums, etc.

Commercial power grid

■ Notional Image of a V2H
System Composition
Using solar power generation

Controlling charging anddischarging of electricity
with PHV/EV

Systemconnection

Storage battery

Feeding daytime surplus
electricity to a vehicle

V2H Feeding electricity
PHV/EV
from a vehicle at suchoccasions as during thenighttime when solar power
generation is not available

V2L
V2L

TMC’s SORA FC bus

AC 200V

Financial Section /Corporate Information

Utilizing Charging Stand Technology to
Achieve Mutual Vehicle-Home Power Supply

Solar power
generation

Promotion of ESG Initiatives

1.5kW

Control panel

Power combiner*3: General term used to refer to systems and equipment designed for using in homeelectricity accumulated in PHV/EV batteries*4: Power grid that can control and optimize the flow of electricity both from the demandand supply sides

Wind power
generation

Strategies and Businesses■ Notional Image of Operating High-Power
Equipment

1.5kW

Demand andsupply ofelectricity

discharging of power between vehicles and various facilities
and equipment, and in turn contribute to the creation of asmart grid*4 society.

Connecting Multiple DC-AC Inverters to Run
High-Power Appliances during a Power Outage
To enable the operation of elevators, multilevel car park
lifts, lighting fixtures of evacuation shelters, water-supply
pumps and other high-power appliances and equipment
when power is lost during a disaster, we developed a power
combiner to connect six 1.5kW vehicle-use DC-AC inverters
to provide a high wattage of 9kW.
In fiscal 2020, we will begin feasibility tests jointlywith relevant local governments to promote earlycommercialization of the power combiner as an emergency
power source for local government offices, hospitals, welfare
facilities, condominiums and large commercial facilities.

■ Notional Image of a Smart Grid
Connecting to an Electrified
VehicleCompany Introduction

Smartphones and other devices at a charging
corner (2016 Kumamoto Earthquakes)© The Yomiuri Shimbun

SwitcherAC 100V

The initiatives described in this Special Feature are only a few examples of our products for use
during disasters and other situations, which are based on our power source technologies. Goingforward, we will continue to explore new applications for our existing products as well as develop
new products in order to respond to ever-changing customer needs.
29

Business Activities

Business Activities

Business Structure

P36–41P42

As a market leader with an extensive knowledge of global logistics needs, Toyota Industries provides
a range of materials handling equipment, mainly lift trucks, and logistics solutions to customers.

Toyota Industries’ Materials Handling Equipment Business
is operated under a two-organization structure: Toyota
Material Handling Group (TMHG) responsible for the Lift
Truck Business and Toyota Advanced Logistics Group(TALG) engaging in the Logistics Solutions Business. TMHG
and TALG collaborate with each other to achieve overall
growth of the Materials Handling Equipment Business while
reinforcing individual businesses.

Strengths

Toyota Material Handling Group (TMHG)(Vehicle / Engine / Car Air-Conditioning Compressor / Car Electronics)

Textile Machinery

Materials Handling Equipment*1: Survey by Toyota Industries Corporation

Opportunities• An expansion of global logistics volume in line with an increase in the world population and economic growth• Rising need for higher logistics efficiencies prompted mainly by soaring labor costs and labor shortages• Expanding business domains mainly facilitated by a growth in e-commerce transactions• Growing need for products with high energy savings and low environmental impact, driven by a rise in ecoconsciousness and stricter environmental regulations

Risks• Restrained capital investment due to a slowing economy• Lower sales prices caused by intensifying competition• Change in business environment triggered by an expanding market of low- to mid-priced lift trucks

FY2018FY20191,466.6 billion¥1,283.0 billion¥

FY2018Operating
Profit¥104.9 billion

Following an expansion of the e-commerce market,
providing solutions to diverse and complex logistics issues
for distribution centers has become a pressing task, andneeds for logistics solutions have been growing globally.
Amid this environment, we go a step beyond justproviding a broad range of materials handling equipment
and associated software programs and are reinforcing our
Logistics Solutions Business to more meticulously satisfy
each customer’s varying needs by leveraging our logistics
improvement know-how accumulated to date.
Under the TALG management structure, the Logistics
System Engineering Department of Toyota Material HandlingJapan, which mainly engaged in business in Japan, and two
companies that joined the Toyota Industries Group in 2017,
namely U.S.-based Bastian Solutions LLC and Netherlandbased Vanderlande Industries Holding B.V., are promoting
business while leveraging their individual strengths.

FY2019114.6 billion¥n Toyota Material Handling Group

TMHG
Materials Handling Equipment Sales(Thousand units)

300
250
200
150
100
50
0

30

(FY)

15

Toyota Industries Report 2019

16

17

18

19

n Toyota Industries’
Global Lift Truck
Market ShareBusiness Overview in Fiscal 2019
In the Materials Handling Equipment Business, the lift truck market in 2018 asa whole continued to expand globally, driven by strong sales in Europe andChina. Amid this operating climate, Toyota Industries worked to strengthen
production and sales activities matched to respective markets and rolled out
new products. Consequently, unit sales of lift trucks for fiscal 2019 increased
by 23,000 units, or 9%, to a total of 300,000 units over the previous fiscal year.
As the need for higher logistics efficiencies remained strong, underpinned byan increase in logistics volume and a rise in the number of large logistics
bases, Toyota Industries made efforts for further business reinforcement
through collaboration with logistics solution subsidiaries in the United Statesand Europe. As a result of these activities, net sales in fiscal 2019 totaled¥1,466.6 billion, increasing ¥183.6 billion, or 14% year-on-year.

(Survey by Toyota Industries
Corporation, 2018)

TMHJ

TMHNA

TMHE

TMHI

TMHCN

Toyota Material
HandlingJapan

Toyota Material
Handling
North America

Toyota Material
Handling
EuropeToyota Material
Handling
International

Toyota Material
Handling
China

The Toyota Material Handling Group possesses several brands such as TOYOTA, BT and RAYMOND andengages in business by dividing the world into five areas: TMHJ (Japan), TMHNA (North America),
TMHE (Europe), TMHI (Asia, Australia, etc.) and TMHCN (China).

Financial Section /Corporate Information

Net Sales

Toyota Advanced Logistics Group (TALG)

Promotion of ESG Initiatives

Toyota Industries assists customers worldwide in attaining
greater logistics efficiencies by undergoing changes overtime as a market leader in the materials handling equipment
and logistics fields and by delivering logistics solutions
optimally tailored to their specific needs.
Under the TMHG management structure, we engage inthe Lift Truck Business under the TOYOTA, BT, RAYMOND,CESAB and Tailift brands. Mutually utilizing the development
and sales strengths of each brand, TMHG is promoting
business on a global scale.
We basically carry out product development in three
regions, namely Japan, North America and Europe. Basedon this structure, we develop and manufacture products ineach region, which are matched to the specific local needs
and characteristics, and ensure quick product delivery tocustomers.
At the same time, we seek greater product appeal by
conducting in-house development and production of key
components of lift trucks, including engines and motors.
In addition to supplying such high-quality products,
we have established a structure to support customers
throughout our entire value chain that encompasses
from selling products and providing after-sales services
through our extensive networks to offering sales financing
operations. Going forward, we will contribute to greater

Strategies and Businesses• An extensive logistics-related product lineup both in the fields of materials handling equipment (internal-combustion
lift trucks, electric lift trucks, fuel cell (FC) lift trucks, etc.) and materials handling systems (automated storage andretrieval systems, automatic guided vehicle (AGV) systems, automated lift trucks, etc.)• Software development capability to create such systems as a warehouse management system that comprehensively
manages distribution center operations, from acceptance to stock and shipment, and optimally controls materials
handling system equipment• In-house development and production of key components of lift trucks, including engines and motors• High technological capabilities, including those linked to environmental and safety performance• Production know-how that ensures high levels of quality and production efficiency• No. 1*1 in lift truck unit sales in the world• Global, well-developed production, sales and service networks• Total support services encompassing IT-based maintenance and inspection as well as operational management• A wealth of experience and know-how accumulated in the Logistics Solutions Businesslogistics efficiencies based on our comprehensive strengths
in satisfying varying needs of customers worldwide. On
the sales front, we are seeking to obtain large orders
by responding to demands of customers who conductbusiness globally while undertaking sales activities matchedto the specific conditions of each market. In terms ofservices, we assign experienced and knowledgeable service
personnel and utilize leading-edge information technology(IT) to provide finely tailored services to customers. Ourservice personnel visit customers on a periodic basis andprovide maintenance services to prevent troubles fromoccurring. When a problem does occur, they swiftly make avisit to the customer and promptly take appropriate action.
We are also strengthening our internal sales financing
operations mainly in Europe, the United States and otherdeveloped countries in order to respond to customers’
wide-ranging needs in the area of equipment sales.

Company Introduction

P30–35Materials Handling Equipment
Automobile

ToyotaIndustries

20%

World No.1

31

Business Activities

Activities of TMHG

TALG

Japanese Market
Logistics System
Engineering Departmentof Toyota Material
Handling JapanTALNA*2/
BastianVanderlande*2: Toyota Advanced Logistics North America

Business Activities in Fiscal 201932

Toyota Industries Report 2019*7: Survey by Crist Information & Research, LLC, 2018
*8: Survey by Raymond Corporation

Toyota Industries’ booth at ProMat 2019

Financial Section /Corporate Information

Aichi Corporation’s aerial work platform

In the expanding North American lift truck market, Toyota
Industries remained the market share leader*7 in 2018 withcombined unit sales of TOYOTA and RAYMOND brands ofapproximately 98,000 units, a record-high, up 10% from theprevious fiscal year. In addition to lift truck sales, parts sales
and orders for after-sales services remained strong.
Toyota Industries
is proactively releasing
new products bothunder the TOYOTA
and RAYMOND brands
to satisfy various
customer needs.
Toyota expanded its
warehouse productofferings with the
8-Series Order Picker
introduction of the
8-Series Order Picker. Toyota’s new electric towing tractor
utilizes high-output, high-efficiency drive motors to provide
comparable performance to internal-combustion engine
models and is an ideal solution for airports and cargoterminals. As for aerial work platforms, in addition to ascissor lift which is compact yet allows working at a greater
height, a vertical type was added to the lineup to provide
more options to customers. The vertical type realizes asmaller turning radius thanks to a shorter wheelbase,achieving higher operability in confined spaces.
Raymond rolled out the industry’s tallest*8 Model 7530
Reach-Fork electric lift truck with integrated technologies
and telematics. To respond to the industry need toautomate end of line and P&D (pick up, drop off), Raymondalso started offering a new stacker automated lift truck
combining unparalleled vision technology.

Promotion of ESG Initiatives*3: Survey by Aichi Corporation

North American Market

Strategies and Businesses

With the continued growth of the world’s lift truck market
in 2018, we worked to enhance the product appeal of ourmainstay lift trucks and reinforce our sales networks. We
also strove to offer reliable after-sales services, enhance
responsiveness to large-order customers and provide
solutions to achieve greater logistics efficiencies through theintroduction of distribution systems.
As an effort to meet the diverse needs of customers in
the field of lift trucks, we proactively deployed new products
in each region and have been increasing the lineup of
telematics-integrated models and automated models formore efficient fleet operations. To appeal the attractivenessof our products to a broader audience and secure contact
points with customers, we actively participated in exhibitions
held in various parts of the world. For promoting sales,
we reinforced sales of equipment and spare parts througheach brand’s Website to provide greater convenience tocustomers.
In the logistics solutions field, we formulated an outline of
our strategy to promote coordinated activities as TALG. We
will make maximum use of TALG’s resources and provide
logistics solutions unique to the Toyota Industries Group to
customers worldwide.
Meanwhile, Aichi Corporation,
which possesses the top
brand*3 in the field of aerial work
platforms in Japan, posted higher
sales to the leasing industry,
driven by an increase in capital
investment for construction
work. On the other hand, sales
declined in the electric power,
telecommunications and railway
industries. As a result, Aichi’s
overall sales were on par with theprevious fiscal year.

Toyota Industries’ booth at Logis-Tech Tokyo 2018
*4: Survey by Toyota Industries Corporation based on data published by Japan Industrial
Vehicles Association*5: Ichikawa City, Chiba Prefecture*6: Takahama City, Aichi Prefecture (within Toyota Industries’ Takahama Plant)

Toyota Industries
is also enhancing thelineup of entry-level
models, with Tailift
products handled by
Toyota and Lift-Rite
products marketedby Raymond. We
have been working toincrease recognition for
Model 7530 Reach-Fork electric lift truckthese products throughpromotional campaigns and other means. These models
are also available on our Websites, thereby responding tocustomers’ needs to make purchases over the Internet.
In reinforcing collaboration between the Lift TruckBusiness and Logistics Solutions Business, we started
selling and servicing Bastian products through our Toyota
sales network. At ProMat 2019, North America’s largest
materials handling trade show held in Chicago in April 2019,
Toyota, Raymond, Tailift, Bastian and Vanderlande joined
together with collaborative displays to showcase both theirindividual and collective strengths to respond to the logistics
issues of all customers.
Toyota Industries will continue to leverage the strengths
of TOYOTA and RAYMOND brands and further accelerate
the development of technologies utilizing automation,
telematics and other cutting-edge technologies. In addition,
we seek to expand our business by meeting customers’
needs for greater logistics efficiencies through deeper
collaboration within the logistics solutions field.

Company Introduction

Under TALG, Logistics Engineering Division of Toyota Material
Handling Company, Bastian and Vanderlande work together
to promote the Logistics Solutions Business on a global scale
while leveraging their individual strengths.

With the Japanese lift truck market continuing steady
growth in 2018, Toyota Industries posted record-high unit
sales in fiscal 2019 at 47,000 units, attaining a 9% increaseyear-on-year. Unit sales of Toyota Industries’ lift trucks
maintained the top position*4 in calendar 2018 for the 53rd
consecutive year.
An expansionof the e-commercemarket in recent
years has given riseto an increase in new
construction of larger
distribution centers.
Coupled with changes
in the businessToyota Material Handling Customer Center Osaka
environment causedby, for example, labor shortages, these developments havefurther increased the needs for logistics solutions that canoffer greater logistics efficiencies and a higher degree ofautomation at logistics sites. To respond to these needs,
Toyota Industries established in June 2018 the Toyota
Material Handling Customer Center (CC) Osaka, a large
consulting-based logistics show room, in Suita City, Osaka.
Our first customer center, CC Tokyo*5 opened in 2001, andthe second one, CC Aichi*6, have been well recognized bycustomers, receiving an increasing number of visitors every
year. CC Osaka, our third base to disseminate informationon our logistics solutions, serves to create closer ties
between the TOYOTA brand and customers in westernJapan.
Within CC Osaka, we exhibit many of our latest logistics
systems, equipment and technologies and present tocustomers the future logistics solutions envisioned by Toyota
Industries. Specifically, we re-create various logistics sites,
including a large distribution center fully automated withrobotics technology
and a production
line that can flexibly
respond to changes in
production items andvolumes, to showcase
example solutions
that capture thelogistics issues of each
Re-creating a large distribution center
business category. We
also devise ways for customers to experience and visualize
the functionality, ease of use and improvement effects ofour products through oral explanations by dedicated staff
along with visual exhibitions using virtual reality (VR) andaugmented reality (AR) technologies.
In September 2018, Toyota Industries participatedin Logis-Tech Tokyo 2018. Under the concept of “MoreInnovative and Beautiful Logistics for Japan—Opening a

Brand-New World of Logistics Aesthetics,” we operated
the largest booth among the participating companies
and displayed our advanced technologies and productappeal that have been further enhanced after the joiningof Vanderlande and Bastian. Through these exhibitions,
we showcased our global Logistics Solutions Business,
which we promote on a Group-wide basis, to some 35,000
visitors.

European Market
Despite a slowdown in Sweden, the three Baltic countries
and Turkey, the European lift truck market sustained
growth overall in 2018, with strong growth in Germany, theNetherlands and Poland. In response to growing customer
needs for automated and connected logistics solutions,Toyota Industries worked to enhance corresponding products
and services. As a result, we posted unit sales of 95,000 units33

Business Activities

ALOMA*9 and Chinese Markets*9: ALOMA is a Toyota Industries term for Asia, Latin America, Oceania, Middle East andAfrica.

Activities of TALG

Vanderlande

Logistics System Engineering Departmentof Toyota Material Handling Japan

intelligent mobile robot

BastianOn the back of strong needs for logistics automation in not
only the e-commerce sector but also in the manufacturing
and retail sectors in North America, Bastian has been
receiving orders from customers in a broad range ofbusiness categories and expanding sales. To handle
increasing orders, at a new plant the company initiated the

Financial Section /Corporate Information

In Japan, the aggravating issue of labor shortages has
prompted efforts for labor and work savings in distribution
warehouses, pushing up needs for automated logistics
systems. Amid this environment, we developed anautonomous vehicle (AV) that does not require theinstallation of magnetic guides needed for AGVs andinitiated a feasibility test. Among the existing AVs, our Key
Cart small carrier offers both an autonomous driving featureand price competitiveness, making it easy to be introduced
into a logistics site. Another AV, the AiR-series autonomous
intelligent mobile robot, provides afeature to track the picking operator
and help to resolve labor shortages
by reducing the work load. As a new
business domain, we are also carryingout the development of an autonomousconveying system that carries drugs andtest samples in a hospital and baggage
containers in an airport.
AiR-series autonomous

Among logistics sites in Europe and the United States,
which are Vanderlande’s primary markets, an expansion of
the e-commerce market and labor shortages have caused
a sharp increase in needs for automated systems. Under
such conditions, Vanderlande has obtained large orders forwarehouse logistics and parcel/postal services from suchcompanies as Amazon and DHL, and has been steadily
increasing orders and sales.
In the airport business,
Vanderlande has delivered
its systems to more than
600 airports around theworld. With orders for
systems from new large
airports, the company has
Baggage handling system (Heathrow Airport)
been achieving further
growth. Based on its longstanding relationship of trust with customers, Vanderlande
has concluded continuous servicing contracts with existingcustomers, including Heathrow Airport in the United Kingdom.
The sharp increase in orders has made the recruitmentof new personnel and swift human resources development
an urgent task for Vanderlande. Accordingly, in January
2019 the company opened a new training center within
the head office premises and started providing a rangeof educational programs aimed at globally maintaining its
superior capabilities to propose logistics solutions andprovide excellent services.
Vanderlande is also accelerating efforts to introduce its
products into Japan through TMHJ, including identifying
customer needs and establishing required sales andservice structures.

Promotion of ESG Initiatives

Toyota Industries covers the ALOMA markets of some 60
countries in Asia, Latin America, Oceania, the Middle East
and Africa as well as the Chinese market. We are serving
these markets with a lineup consisting of TOYOTA, BT,
RAYMOND and Tailift brands.
In 2018, both the ALOMA market (in all regions) andChinese market expanded. Amid such conditions, Toyota
Industries released new products and enhanced its sales
and after-sales service structures. Unit sales consequently
increased 15% over the previous fiscal year to 60,000 units
in fiscal 2019.
In the electric lift truck field, for which needs havebeen growing, we released a number of new products,
including four-wheel electric lift trucks, standing reachtype electric trucks, warehouse lift trucks equipped withlithium-ion batteries and electric
towing tractors for use in airports.
At the same time, we proactively
appealed the functionality andcharacteristics of our products to
New electric towing tractor
customers. As a result, sales ofelectric lift trucks in the ALOMA market showed an increaseof 13% over the previous fiscal year.
To reinforce after-sales services to customers in Asia,
we started implementing the Global Mobile Service Solution(GMSS), an internally developed mobile service systemutilizing Internet of Things (IoT) technology. GMSS links
Toyota Industries, dealers in each country and customers’
fleet information by using cloud services. By centrally
managing maintenance and repair information of lift
trucks, the system improves the efficiencies of preventive
maintenance and regular maintenance activities. Startingwith Asia, we plan to implement GMSS throughout theworld. In addition to our alreadysuperior product quality anddurability, we seek to reinforce ourafter-sales services and pursue
greater operational efficiencies
for customers by minimizing the

production of conveyors that have already been produced
in-house. By increasing production capacity of conveyors,a key item in a logistics system, Bastian aims to reducedelivery time and further improve product quality.
In addition to its
capabilities for systemdevelopment andintegration, Bastian has
strengths in its ability to
ULTRA exhibited at MODEX 2018
develop cutting-edge
technologies. At MODEX
2018, a logistics systems and equipment trade show
held in Atlanta in April 2018, the company presented its
ULTRA loading and unloading robot, which drew a great
deal of attention from customers around the world. Bastiandelivered the ULTRA for the first time at the end of 2018 to aleading food manufacturer in the United States.
Bastian has been reinforcing collaboration with dealersof TOYOTA and RAYMOND brands in North America. In the
future, Bastian will increase its capability to provide logistics
solutions to lift truck users as a member of the Toyota
Industries Group.

Strategies and Businesses

in fiscal 2019, up 3% over the previous fiscal year.
CeMAT 2018, the world’s premier intralogistics andsupply chain event, was held in April 2018 in Germany.
Toyota Material Handling Europe (TMHE), our European
base for materials handling equipment, exhibited the
newly launched offerings which help customers to improve
efficiency, such as the Toyota Traigo80, a heavy-duty electric
lift truck; in-house assembled lithium-ion batteries forelectric range; and T-Stream, a new after-sales service tool
developed in cooperation with Microsoft.
During the exhibition,
TMHE also announced
that all electric warehousetrucks produced at a plantin Sweden will be standard“smart trucks” integrating
telematics capabilities andSmart truck
started producing this modelin November 2018. Smart
trucks accumulate such data as running distance and hoursof operation immediately upon installation, making it easier
to monitor fleet operations and determine maintenancetiming based on the operation status. Customers can also
analyze the data to improve the efficiency of their fleet
operations. TMHE intends to maintain and reinforce its
market leading position by proactively incorporating leadingedge technologies to provide new value to customers.
Toyota Industries’
products have gained highrecognition in Europe. The
newly launched electric lift
truck Toyota Traigo80 was
recognized with two design
awards, the 2018 German
Toyota Traigo80
Design Award and the iF
Design Award for its highenergy efficiency, maneuverability and multi-pallet handling.
In addition to awards for the Traigo model, the Pallet Drone,
an autonomous pallet truck, obtained an iF Design Award in
the discipline Professional Concept in the Mobility category
for its advanced control technology.
In the area of sustainability, TMHE was awarded“Best Group Engagement” by EcoVadis, an internationalorganization providing sustainability ratings of suppliers.

downtime of their fleets.
As a total solution provider, Toyota Industries has beenstrengthening efforts to respond to every logistics need ofcustomers in the ALOMA market. In 2018, in collaboration
with a new partner, we started selling storage racks,
which makes it possible to offer lift trucks and racks inmajor countries in the ALOMA market. We offer a solution
optimized to the layout and operation of a customer’slogistics facility, providing greater convenience and helping
customers achieve higher efficiencies.
With a view to responding to expanding and diversifying
customer needs in the ALOMA and Chinese markets,
Toyota Industries will continue to establish and enhancesales and after-sales service structures in these regions.
Simultaneously, as the leading manufacturer of materials
handling equipment, we will utilize IoT and other advanced
technologies and further enhance our product lineup inorder to provide comprehensive logistics solutions jointlywith our dealers in each country.

Company Introduction

TMHE’s exhibition space at CeMAT 2018

TMHE was first evaluated at a group level by EcoVadis in2012 and has expanded its annual EcoVadis assessments
to 26 entities in Europe since then. In 2017, its four
European plants, 21 national sales companies and thegroup as a whole were awarded 11 Gold, 13 Silver and two
Bronze ratings.
In 2018, TMHE renewed its company strategy
and recognized “automation,” “connectedness” and“productivity” services as new priority areas for further
business growth. Needs for automated and other logistics
solutions are expected to increase in relatively small local
markets as well. In response, TMHE has established alogistics solutions competence hub in Austria, the first basein Europe to appeal its logistics solutions capabilities tocustomers, and will work to capture demand in this region.

GMSS mobile service system

34

Toyota Industries Report 201935

Business Activities

Automobile

VehicleIn the fields ranging from vehicle assembly to engines, car air-conditioning compressors and car
electronics, Toyota Industries continues to meet the expectations and trust of its customers.

Business Overview in Fiscal 2019

Strengths

Highest-Level SEQCD to Contribute to
Production of Toyota Cars

Opportunities• Increasing needs for energy-saving products due to stricter environmental regulations and growing environmental
consciousness• Sales expansion in each sector in line with growth of the automobile market

Risks• Shrinking of the automobile market caused by economic slowdown• Customers becoming reluctant to buy energy-saving products following less stringent environmental regulations• A drop in product competitiveness due to the yen’s appreciation or a rise in raw material costs

Development and Production of Plastic
Glazing

Operating
Profit¥29.6 billion

610.7 billion¥595.0 billion¥

Vehicle Sales

Engine Sales

Compressor Sales(Thousand units)(Thousand units)(Million units)

700

350

600

30

250

500

25

200

400

20

150

300

15

100

200

10

50

100

5

(FY) 15

Toyota Industries Report 2019

16

17

18

19

0

(FY) 15

FY20196.8 billion

¥

35

300

0

36

FY2018FY2019

16

17

18

19

0

The new RAV4 is TMC’s fifth-generation global strategic
vehicle. For this vehicle, Toyota Industries was involvedin vehicle planning and upper-body development andassumed our first-ever role of spearheading productionlines ahead of any other plants producing the newmodel around the world. It was a large project, involving
switching the production lines for the previous RAV4
to those for the new model. It also required converting
compact car production lines that had produced theVitz into medium-class lines for the new RAV4. Building
on our past experiences, we were able to launch
production in a sequential manner in November 2018.
These production lines are even more eco-friendly andboast a higher production efficiency than the previouslines. Several ideas generated within our plant havebeen highly recognized and adopted in other TMC
plants.
Going ahead, we will further improve our productplanning capability in addition to our existing strengths
in SEQCD and intend to play more important roles as aleading plant producing compact sports utility vehicles(SUV) within the Toyota Group.

* Survey by Toyota Industries Corporation(FY) 15

16

17

18

19

Financial Section /Corporate Information

FY2018Net Sales

Toyota Industries’ plastic glazing has been used in thepanoramic roof of TMC’s hybrid vehicle Prius a (Prius + in
Europe and Prius v in North America).
The panoramic roof retains the beautiful surface quality
typical of a glass roof yet is approximately 40%* lighter thanits glass counterpart, improving vehicle fuel efficiency, which
has become increasingly important, and thus contributing to
the reduction of CO2 emissions.
Toyota Industries will continue to develop attractive
new products that leverage the distinctive characteristics ofplastic glazing.

TOPIC

Promotion of ESG Initiatives

Toyota Industries’ comprehensive strengths lie in the highest
level of safety, quality, cost and delivery among all Toyotaaffiliated automobile body manufacturers. In fiscal 2019,
we received the Toyota Quality Control Award from TMC
for seven consecutive years. We will remain committed tofurther strengthening our already superior level of safety,
the environment, quality, cost and delivery (SEQCD). We
also are working to leverage our ability to quickly start
up production and a flexible structure in terms of vehicle
models and production volume to contribute to productionin Japan of Toyota vehicles.

* Survey by Toyota Industries Corporation“Thank You, Vitz” ceremony

Strategies and Businesses• Highest-level production efficiency and quality among all Toyota-affiliated automobile body manufacturers (Vehicle
assembly)• An agile structure to undertake all aspects from planning and development to production within a plant (Vehicle
assembly)• Know-how on the development and production of diesel engines and turbo chargers (Engine)• Highly efficient production of high-quality gasoline engines, including those for use in hybrid vehicles (HV) (Engine)• Ability to develop excellent products with greater fuel efficiency, quieter operation, compactness, light weight andeasiness to mount on vehicles (Car air-conditioning compressor)• Global top-share* products for use in a full range of vehicles, from internal-combustion vehicles to HVs, plug-in
hybrid vehicles (PHV), electric vehicles (EV) and fuel cell vehicles (FCV) (Car air-conditioning compressor)• Global production structure based on the concept of local production and local consumption (Car air-conditioning
compressor)• Higher technological capabilities accumulated through the development and production of products for Toyota Motor
Corporation (TMC), external sales and internal use (Car electronics)• Development, production and top-level quality of electronic parts and devices for electrified vehicles (Car electronics)

Toyota Industries had manufactured TMC’s Vitz (Yaris
outside Japan) for almost 20 years since January 1999. In
September 2018, the production of the Vitz was transferred
entirely from Toyota Industries to Toyota Motor East Japan,
Inc.

Company Introduction

While sales were slightly down in Europe, theautomobile market remained on par with the previous
fiscal year on a global basis.
In fiscal 2019, unit sales of the Vitz (Yaris outside
Japan) and the RAV4 decreased by 13,000 units, or
4%, from the previous fiscal year to 285,000 units.
Net sales, on the other hand, increased by ¥10.3
billion, or 14% year-on-year, to ¥82.4 billion as
production of the new RAV4 was launched in
November 2018.

Transfer of Vitz Production to Another
Company—“Thank You, Vitz”

Production line for the new RAV4

37

Business Activities

EngineBusiness Overview in Fiscal 2019

Highly Acclaimed by Customers
Worldwide

Turbocharger(mounted on Toyota 1ZS diesel engine)

TOPIC*3: Development policy and method for vehicle creation based on a modular platform

GD diesel engine

Developing Competitive Engines inIndustrial Fields
Toyota Industries’ engines are highly renowned for theirreliability and excellent environmental performance inindustrial fields as well. These engines are used for a wide
variety of applications, including our lift trucks, and adopted
by many customers such as GHP*1 manufacturers in Japanand CHP*2 manufacturers worldwide. These engines offer
downsized displacement compared with conventionalmodels with equivalent output, resulting in higher fuelefficiency, cleaner emissions and a reduction in size. In
2017, our engine was adopted for the first time in theconstruction machinery field. We will continue to expand
sales into this and other fields.
*1: Short for gas heat pump; air conditioner driven by a gas engine*2: Short for combined heat and power; co-generation system

38

Toyota Industries Report 2019

2.5-liter A25A engine for HVs

2.0-liter M20A gasoline engine

Seeking Engines with Greater ProductAppealFollowing the Paris Agreement adopted in December 2015
at the 21st session of the Conference of the Parties to theUnited Nations Framework Convention on Climate Change(COP21), and with some countries announcing their shift
from internal-combustion vehicles to electrified vehicles,
there has been a growing need for engines with even greater
fuel efficiency and cleaner emissions for HVs, PHVs and otherelectrified vehicles as well.

Business Overview in Fiscal 2019
In fiscal 2019, unit sales of car air-conditioning
compressors decreased 440,000 units, or 1%, fromthe previous fiscal year to 32.98 million units,affected by lower sales in Europe and Japan despite
an increase in sales in China and other emerging
countries. Net sales were down ¥5.2 billion, or 1%,
from the previous fiscal year to ¥346.2 billion.

Development Efforts Centered around
Energy Savings and Car Electrification
We expect continued growth of the car air-conditioning
compressors market on the back of the expanding
automobile market and an increase in the number ofvehicles fitted with an air conditioner. In order to reinforce
this business, we will channel resources into both types ofcompressors, namely compressors for internal-combustion
vehicles, which are still mainstay products for the time
being, and compressors for electrified vehicles, for which we
anticipate stronger demand in the future.
More stringent fuel efficiency standards have been
enforced across the world, driving needs for higher fuelefficiency both for internal-combustion vehicles andelectrified vehicles. Ourvariable-displacement typecompressors for internalcombustion vehicles, which
are renowned for high fuelefficiency and reduced weight,
have been adopted by theworld’s leading automakers,
including TMC, Daimler AG,
6SES14 compressor(variable-displacement type)
General Motors Company(GM), Volkswagen AG and
Hyundai Motor Company.
In the United States, our SES series became the firstcompressor to be approved under the country’s off-cycle
credits program. The program gives off-cycle credits totechnologies that can effectively improve fuel efficiency

Developing Next-Generation Products
Following car electrification and widespread use of
autonomous driving technology, there has been a growing
need to cool electronic devices, batteries and other heatemitting components. In response, Toyota Industries plans
to conduct development for using the cooling function of acompressor not only for vehicle interior air conditioning but
also for key components. Besides this cooling functionality,
we intend to utilize our core technologies to expand ourbusiness domain into core components for drive systems.

Financial Section /Corporate Information

Turbocharger(mounted on GD diesel engine)

Car Air-Conditioning
Compressor

Promotion of ESG Initiatives

In 2018, Toyota Industries launched production of twogasoline engines that are based on the Toyota New
Global Architecture (TNGA)*3, namely the 2.5-liter A25A
in October and 2.0-liter M20A in December. These newengines are mainly fitted in the new RAV4 manufactured
at the Nagakusa Plant in Aichi Prefecture.
With the advancement of car electrification, we
have added an HV version of the A25A engine to our
lineup. The basic framework of all these engines was
totally revamped based on the TNGA concept, andtheir renewed structure offers both excellent driving
performance and environmental performance. In
preparing to produce these engines, we incorporated
our improvement know-how accumulated in the
production of AR engines, the predecessor model.
Simultaneously, we shared the new method and otherinformation among relevant departments to swiftly
identify and resolve issues. Through these efforts, wewere able to smoothly launch production within a shortperiod of time.
We will improve product quality and productivity further
and contribute to the creation of “ever-better cars” by
TMC both through diesel engines and gasoline engines.

Strategies and Businesses

Toyota Industries’ diesel engines are mounted in a variety of
Toyota vehicles, including the Toyota Land Cruiser series, theworld’s renowned full-fledged four-wheel drive (4WD) model,
and TMC’s Innovative International Multipurpose Vehicle (IMV)
series targeting emerging countries. Their high performanceand reliability have gained strong market recognition.
Currently, our mainstay products are in-line 4-cylinder GD
diesel engines and V-type 8-cylinder VD diesel engines. GD
diesel engines equipped with a turbocharger specificallyand optimally designed and manufactured in-house are
manufactured in Japan and by Toyota Industries Engine
India Pvt. Ltd. (TIEI), a consolidated subsidiary in India. In
fiscal 2019, we increased our production capacity of GD
diesel engines in Japan, for which needs are increasing.

Toyota 1ZS diesel engine

under its emissions regulations. We have since beenworking to increase the number of models equipped with
the SES series compressors.
For electric compressors, for which growth indemand is expected over the medium to long term, weare differentiating them in accordance with the needs ofindividual electrified vehicles
ranging from HVs to EVs.
To ensure the quietness ofoperation, which is importantin all types of electrified
vehicles, we are conducting
sensory evaluation throughactual driving tests andSoundproof wind tunnel installed atquantitative evaluation
the Kameyama Proving Groundusing a soundproof windtunnel that can re-create theconditions of actual driving. These evaluations are carriedout at our new Kameyama Proving Ground (test driving
course) opened in Mie Prefecture in 2018. In response to
the expected increase in EVs, we are devising measuresagainst electromagnetic noise that could affect homeelectric appliances during charging. We utilize simulation
technologies to swiftly create designs suited for various
vehicles and offer solutions to problems by leveraging theinsight, which we, as the leading compressor manufacturer,
have accumulated through interactions with a number of
automakers.
Besides TMC, Ford Motor Company, Renault S.A.S.,
Honda Motor Co., Ltd., Nissan Motor Co., Ltd. andother automakers, which are already using our electriccompressors in their respective HVs, PHVs and EVs, wewill continue to ramp up our efforts to expand sales to otherautomakers around the world.

Company Introduction

We discontinued the production of AR gasoline
engines in June 2018. However, the launch of new
A25A and M20A gasoline engines and increased
sales of GD diesel engines pushed up unit sales infiscal 2019 by 19,000, or 3%, over the previous fiscal
year to 593,000 units. Net sales increased by ¥9.7
billion, or 10% year-on-year, to ¥108.4 billion.

Diesel engines, on the other hand, enjoy an enduring
popularity particularly as a power unit suited for SUVs andsuch commercial vehicles as pickup trucks, as they offer
excellent basic performance of high fuel efficiency and hightorque at low speed.
Aiming for further evolution of internal-combustion
engines, we will continue to seek the world’s highest-levelcombustion efficiency and develop more fuel-efficient andcleaner engines.

TOPIC
Based on compression technology used in compressors,
we have developed an oxygen-supplying air compressor
and hydrogen circulation pumps for FCVs, which havebeen fitted in TMC’s MIRAI FCV. The invention of an FCV
air compressor by Toyota Industries received the Japan
Patent Office Commissioner’s Award in the National
Invention Commendation 2018 hosted by the Japan
Institute of Invention and Innovation. As an FCV runs on

39

Business Activities

Establishing Optimum Global Productionand Supply Structures
To respond to growing demand for variable-displacement
type compressors triggered by the enforcement of more
stringent fuel efficiency standards, we are proceeding withaugmentation of corresponding production capacities andcommenced local production of key functional parts at our
production bases in North America.
In Europe, the ASEAN region and China as well, we are
expanding production capacities and increasing the ratio of
locally procured parts to accommodate growing demand for
car air-conditioning compressors.
We have also set up a system that allows design andproduction engineering departments to work as one teamand increase production capacities in a phased manner.
Through this system, we make efficient investment
according to the production volume.

Increasing Competitiveness by Creating
Production Facilities In-House
Achieving high levels of fuel efficiency and reliability requires
high-precision processing technologies for compressors forboth internal-combustion vehicles and electrified vehicles.
Toyota Industries realizes high-speed and high-precision
machining by leveraging its know-how accumulated throughresponding to the stringent demands of automakers
worldwide and by developing devices from processing
machines to associated cutting tools in-house.

of 50 million unitsn Worldwide Bases of Car Air-Conditioning Compressors (As of March 31, 2019)

DNDE

Germany

Germany

YST

DICH

MACI

China

China

U.S.A.

DIAM

U.S.A.
TICO

DNTS

Japan

Italy
SUBROS

TACK

India

China

TACG

U.S.A.
TICA

U.S.A.

TACI

Indonesia
Consolidated production bases

Licensed manufacturers

DNBR
Technical service stations

BrazilToyota Industries’ car air-conditioning compressors are widely adopted by automakers around the world, garnering the No. 1*4 position in global sales.
*4: Survey by Toyota Industries Corporation

40

Toyota Industries Report 2019*5: Survey by Toyota Industries Corporation

Core Components for Drive Systems
Steadily Expanding Roles of Our Devices
for Electrified Vehicles
Toyota Industries develops and produces electronic devices
for electrified vehicles, including HVs, PHVs, EVs and FCVs.
In addition to TMC, we are promoting new business to otherautomakers across the world.

Auxiliary Power Source Devices
A DC-DC converter converts the high voltage of HV, PHV
and EV batteries into a lower voltage level to supply power
to standard electricaldevices such as lights
and wipers. For the
fourth-generation Prius,
by developing the world’s
first*5 thick copper
substrate with excellent
heat dissipation capability,
we reduced the volume
DC-DC converter mounted in the Prius
and weight of the product.
An on-board charger
converts AC voltage from the power grid into DC voltageof high-voltage batteries in vehicles and is necessary forcharging EVs and PHVs, for which the market is expected to
expand in the future. Starting with TMC’s Prius PHV, we arepromoting sales to various automakers.
Additionally, we have started production of DC-DC
converters and on-board chargers outside Japan in
response to increasing
global production needs.
A DC-AC inverter isa power source device
equipped to use homeelectric appliances in a
vehicle. The 1.5-kW type,in particular, can operateappliances that requireOn-board charger mounted in the Prius PHV
more power, such as ricecookers and hot plates,
allowing use as an emergency power source in a disasterin addition to camping and other outdoor applications.
The role of a vehicle as a power source has drawn muchattention as we experienced a number of disaster-induced
power outages in Japan in fiscal 2019.

The fourth-generation Prius offers a 4WD model for the
first time in the series and is fitted with our rear inverter for
4WD. This product converts the DC voltage of HV batteries
to AC voltage and feeds power to the 4WD rear motor. The
adoption of a forced aircooling system eliminates
the need to install coolingwater piping, thereby
providing greater ease inmounting the inverter onvehicles. The inverter also
features quieter operation
as it is mounted near the
4WD rear inverter mounted in the Priusrear seat.

Charging Infrastructure
Toyota Industries sells public-use
charging stands and home-use
charging units for PHVs and EVs,
which were jointly developed with
Nitto Kogyo Corporation. Currently,
we are conducting an IoT
feasibility test at IKEA Nagakutein Aichi Prefecture. We are linking
charging-only sub-stands and amain control stand, which offers
charging functionality as well as
communication, billing and otherfeatures, and remotely controlling
optimum charging.

Sub-stand

Main control
standCharging stand for PHVs and EVs

Contributing to a Low-Carbon Society

Financial Section /Corporate Information

TDDK

Net sales of car electronics products increased,primarily supported by sales of DC-DC converters,
DC-AC inverters and other devices mainly to TMC.

Promotion of ESG Initiatives

TD Deutsche Klimakompressor GmbH (TDDK), ourconsolidated subsidiary in Germany, started its operation
as a base to supply car air-conditioning compressors
to Europe in April 2000. In August 2018, it marked amilestone, reaching cumulative production of 50 million
units. TDDK currently produces variable-displacement
type compressors with high fuel efficiency. In fiscal 2014,
TDDK started design and evaluation operations locallyand has been recognized highly
by automakers for its ability to
reduce development lead time.
TDDK will continue to play
an important role as one of the
global production and supply
Ceremony to commemorate TDDK
for reaching cumulative production
bases of Toyota Industries.

Business Overview in Fiscal 2019

We will proceed with the development and productionof DC-AC inverters as a key component that adds newvalue to electrified vehicles. (See Special Feature 2 on pages
26–29 for details.)
In addition, we supply power source devices for TMC’s
MIRAI FCV and FCVs of automakers around the world.

Strategies and Businesses

TOPIC

Car Electronics

Company Introduction

electric energy generated through the chemical reaction
between oxygen and hydrogen, an air compressor
that takes in, compresses and sends air (oxygen) toan electricity generation unit is a key component of an
FCV and greatly affects its performance. We utilized
our compression technology cultivated in developing
car air-conditioning compressors and developed an air
compressor with the world’s first six-lobe helical root-typerotor. By increasing the number of lobes of a rotor andtwisting them, we achieved continuous and efficient air
compression from low speed to high speed. The award
recognized its contribution to the quicker acceleration andlonger driving range of the world’s first mass-produced
MIRAI FCV. For the ultimate goal of realizing a hydrogenbased society, we willcontinue to improve
the performance ofcomponents fitted in an
FCV to help increase
the popularity and useof FCVs.
Oxygen-supplying air compressor for FCVs

The electrification of vehicles and materials handlingequipment is expected to become more widespread withthe enforcement of more stringent fuel efficiency standards
by many countries and higher environmental consciousness
among customers. We will reinforce our planning,development, production and sales structures in the fields of
HVs, PHVs, EVs and FCVs with the aim of contributing to a
low-carbon society.

41Business Activities

Textile Machinery Strengths
Carrying on the philosophy offounder Sakichi Toyoda, whichreflects his strong commitment tomanufacturing, Toyota Industries
responds to a broad range of needs
with its extensive product lineup,from air-jet looms, for which we
enjoy the world-leading market
share* in unit sales, to ring spinning
frames and roving frames.

• Broad product lineup both in the spinning andweaving machinery fields• Global, well-developed service network• World-leading market share* in unit sales of air-jet
looms• Ability to develop products that excel in high-speed
operations, reliability and energy-saving performance

Opportunities• A rise in textile demand in line with an increase in the • Further increasing applications in industrial textile
world population
products• Increasing need for high-quality and highly functional yarn and textile products, following the economic
growth of emerging countries

Risks

Promotion of ESG Initiatives
Further Promoting Initiatives to Sustain
Growth in the Areas of Governance,
Society and the Environment
Relevant sustainable development goals(SDGs) for Toyota Industries• Changes in each government’s policies concerning • A decline in capital investment due to a drop in raw
promotion of the country’s textile industry
cotton and/or yarn prices• Economic slowdown• Weaker sales due to intensifying competition* Survey by Toyota Industries Corporation

FY2018Air-Jet Loom Sales

Net Sales(Thousand units)

10
8

4
2

FY20197.3 billion¥(FY) 15

16

17

18

19

The textile machinery market was weak in some countries in Asia but
remained strong in China. Unit sales of air-jet looms increased 2,700
units, or 43% year-on-year, to 9,000 units. Net sales were up ¥10.8
billion, or 17%, over the previous fiscal year to ¥76.3 billion.

Growing Needs for Air-Jet Looms
Toyota Industries’ air-jet looms are adopted by customers
in China, India and many other countries. Produced fabrics
are used broadly for towels, shirts and other clothing
purposes as well as in industrial products such as materials
for electronic substrates and vehicle airbags. Recently, an
increase in mobile electronic devices has driven the need for
fabrics of woven glass fiber for use in electronic substrates,
and it is anticipated that applications for air-jet looms will
expand further. On the sales front, the recent adoptionof more stringent water quality regulations in China has
prompted demand to replace water-jet looms with air-jet
looms. In response, we plan to expand sales of air-jet looms
by appealing their high environmental performance.

Reinforcing Position as a Leading
Manufacturer of Quality Measurement
Instruments for Fiber, Yarn and FabricUster Technologies AG, a Swiss-based consolidated
subsidiary manufacturing quality measurement instruments
for fiber, yarn and fabric, made Israel-based Elbit Vision
Systems Ltd. (EVS) into a subsidiary in 2018. EVS develops
and produces inspection instruments for textile fabrics. The
acquisition has made Uster the world’s only* manufacturer
to offer quality measurement instruments for every stageof textile products from raw cotton to yarn and fabrics.
Capitalizing on this unique strength, Uster intends to further
reinforce its position as a leading manufacturer of quality
measurement instruments for fiber, yarn and fabric.

4276.3 billion¥

FY2018Operating
Profit¥6.1 billion

Business Overview in Fiscal 20196

0¥65.5 billion

FY2019Toyota Industries Report 2019

Taking Part in the Largest International
Textile Machinery Trade Show in Asia
In October 2018, Toyota Industries participated in ITMA ASIA
+ CITME 2018, Asia’s largest international textile machinery
trade show. The show was held in Shanghai, China, which isone of the largest textile markets in the world.
At Toyota Industries’ booth, we exhibited the JAT810
air-jet loom equipped with our original electronic shedding
device, and the demonstration of the high-speed weavingof complex-patterned fabrics was well received by many
visitors. We also displayed special design yarn samples
created by the RX300 high-speed ring spinning frame toshowcase its versatility to produce various types of yarn
from ordinary to decorative yarn.
At Uster’s booth, EVS’s fabric inspection instrument was
exhibited for the first time under the Uster brand, along with
Uster’s yarn quality measurement instruments, and drew theattention of many visitors. Through various textile machinery
exhibitions, we will continue to appeal to customers ourtechnological capability to meet their needs and reinforce
our brand strength to gain greater trust from them.

Uster’s booth bustling with many visitors

Corporate GovernanceP44–50Relationship with Our Stakeholders

P51–60

Environmental Initiatives

P61–76

Staff who participated in the trade show

43