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1BT Industries AB
12In June 2000, Toyota Industries acquired BT Industries AB (“BT Industries”), one of the world’s
leading materials handling equipment manufacturers. BT Industries will remain a separate
entity within Toyota Industries Group.

TOYOTA INDUSTRIES CORPORATION

A Road to the Future:
A Message from Dr. Carl-Erik Ridderstråle, President and CEO of BT Industries AB
For BT Industries, the year 2000 was perhaps the mostimportant ever. Together with Toyota Industries, wecreated a global leader in the field of forklift trucks
and started a journey into a promising future.
Against that backdrop, I would like to take this

ANNUAL REPORT 2001

opportunity to explain the heart of BT Industries’
business concept.
On the surface, our business revolves aroundwarehouse trucks, i.e., electric trucks purposely
designed and built for indoor materials handling. At
the center of our business concept, however, lies avibrant and wider customer-focused theme: To offer
our customers trouble-free materials handling.
Lift trucks in a warehouse are a lot like copiers in
an office. They have to be accessible, easy to use andalways work. A customer shouldn’t have to think
about service or repairs. If something breaks, it should

Carl-Erik Ridderstråle
President and CEO

be fixed without the customer even noticing.
This is the heart of BT’s business concept: To
supply products and services that provide customers

our customers, with high expectations with regard totheir logistics functions.

with trouble-free materials handling. It is a goal that

It means, for one thing, that we have to provide

has driven our development and actions for 55 years.

sales and service everywhere in the world where ourIt is a concept which grows stronger as wecustomers operate. In addition, we have to offer aincreasingly find large international companies amongwide product range.

Note: The fiscal year of BT Industries, unlike that of Toyota Industries,
runs from January 1 to December 31.

Our major customers, particularly those insummer. The acquisition allows each company toconsumer goods distribution, are merging into new,broaden its respective product range and it further

larger groups on both a national and international

broadens our geographic coverage. Indeed, thelevel. At the same time, they are investing heavily tobenefits extend to include every important aspect,

improve their logistics. In many cases this means

geographically and in terms of products, resources andoutsourcing of their entire materials handlingcapabilities.

function. For a set monthly fee, the subcontractor, for

One obvious question is of course how two

example the truck supplier, is expected to manage acompanies with such different cultural backgrounds

truck fleet, provide maintenance and repairs, arrange

can be united. My firm belief is that ultimately it is afor replacement vehicles, spare parts when needed,

question of communication between people. By

and so on.

communication I mean straightforward, simple andBT has taken rewarding actions in the past to meethonest language combined with mutual respect and asense of humility for the task. This is the foundation of

consisted of Europe, with sales at just under SEK4

the work we are now facing.
Finally, a few words about the future. In the shortfigure. Almost half is now generated in Northterm we expect weaker market growth in 2001

America, and the contribution from other parts of thecompared to a very strong 2000. The strength of ourworld is growing quickly.

new structure, however, will provide us with better

BT’s development is a reflection of another theme

opportunities than ever to gain market share. This is
only one example from the road we have begun toguarantee success in the future is to question thetravel together, extending into an unknown but

present. And the driving force behind ourpromising future.

development has been, and will continue to be, ourcustomers.
So it was with our customers in mind that wewelcomed Toyota Industries as our new owner last

Carl-Erik RidderstrålePresident and CEO

ANNUAL REPORT 2001

that runs deep in the company: The only way toTOYOTA INDUSTRIES CORPORATION

these demands. In 1995 our market essentiallybillion. Today, sales have nearly tripled from that13

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1

Organization of BT Industries

BT INDUSTRIESBT EUROPE

14

BT RAYMONDBT INTERNATIONALTOYOTA INDUSTRIES CORPORATION

General Market Trends

Business Area BT EUROPE(Fiscal year ended December 31, 2000)

The year 2000 saw favorable market growth in Western

The forklift truck market is concentrated in theEurope continue. The market for electric warehouseindustrialized world. Total global market volume for all

trucks increased by approximately 15% to 120

truck types is estimated at 600 thousand units in 2000.

thousand units. The largest growth was among small

Approximately 40% or 250 thousand units are electrictrucks, pedestrian pallet trucks and stackers.

warehouse trucks. Counterbalanced trucks account for

The biggest gains were posted in France, Germany

around 350 thousand units, of which 100 thousand areand Italy, Western Europe’s largest markets, which as aelectric and 250 thousand combustion-powered.

whole have doubled in size over the last five years.

Approximately 80% of the market for electricThree large companies that together have about anwarehouse trucks is in Western Europe and the U.S.

80% market share dominate the Western European

Japan and the rest of the world account for aroundmarket. In electric warehouse trucks, two German

10% each. In terms of value, the global market for

manufacturers are the largest players. BT is number

products and services based on electric warehousethree, with a market share of approximately 18%.

ANNUAL REPORT 2001trucks is estimated at SEK50 billion, half of which

In the hand pallet truck segment, BT’s market share isrepresents truck sales and half after-sales services.

estimated at about 25%. In combination with its share

The main players in the market consist of aroundten companies based in the U.S., Europe and Japan.

of the North American hand pallet truck market, BT is
the world leader in this segment.

Some focus mainly on counterbalanced trucks, whileothers offer both warehouse and counterbalanced

Business Area BT RAYMONDtrucks. With a market share exceeding 20%, BT and

In 2000 the North American market for electric

Toyota Industries are the world leader.

warehouse trucks grew by approximately 3% to 80

The forklift truck market, and in particular thethousand units. The strongest growth was in themarket for electric warehouse trucks, is undergoing

Riders segment, i.e., trucks on which drivers ride.

long-term growth. During the past 20 years demand

Apart from BT RAYMOND, which is the market

for electric warehouse trucks in Western Europe andleader, there are two major competitors in electricNorth America has grown by an average of 6% a year.

warehouse trucks, both of which are domestic

Emerging markets in Eastern Europe, Southeast Asia

producers. With the exception of BT, Europeanand South America have grown even faster over thecompanies have a very limited presence.

last decade, at 10-20% annually. This reflects the factthat demand for warehouse trucks is mainly driven by

Business Area BT INTERNATIONAL

a society’s standard of living. An increased flow of

The total market for electric warehouse trucks in BT

goods leads to greater demand for efficient

INTERNATIONAL’s geographic area is estimated atdistribution.

50 thousand units, an increase of approximately 30%

compared with 1999. In Japan, the single largest
market for the business area, about 20 thousand

Mjölby.
Business area BT RAYMOND, with around 2,900

warehouse trucks were sold, a strong recovery from

employees, distributes Raymond branded trucks

1999.

through 33 dedicated dealers with nearly 100 sales

The currency crises in many parts of the world in

locations in North America. All dealers work strictly

1997 and 1998 have subsided, sparking an increase inwith the Raymond brand. These dealers have fulldemand. One exception, however, is the Brazilian

responsibility for operations in their respectivemarket, where the local currency problems that arose

geographical areas, with the exception of sales toin 1999 are still holding demand for imported

nationwide corporate customers, which are coordinatedproducts in check. As a whole, however, all market

centrally by BT RAYMOND. Manufacturing takes placeregions reported growth during the year.

at Raymond in Greene, New York and Brantford, Canada,
and at BT Prime-Mover in Muscatine, Iowa.

Organization

Trucks from BT Prime-Mover are distributed througha separate dealer network focused mainly on customer

countries around the world. Operations are divided

groups other than those reached by the Raymond

into three geographic business areas. Groupbrand.

operations are managed through the parent company,

Business area BT INTERNATIONAL, with around 450

BT Industries AB, headquartered in Mjölby, Sweden.

employees, is active in around 40 markets around theBusiness area BT EUROPE, with around 4,500

world. Operations comprise wholly owned sales andemployees, operates through 12 sales and service

service companies in Eastern Europe, Greece andcompanies in an equal number of countries.

Australia as well as a network of partly owned orOperations consist primarily of marketing, sales andindependent distributors in Southeast Asia, Latin

after-sales services.

America, Europe, the Middle East and Africa. About half

Overall operations are managed and supported byof BT International’s business volume is from BT’s
wholly or partly owned companies. BT International inbusiness area’s marketing and business development

Mjölby supports operations in its various markets withare coordinated. Also, product development andtraining, sales promotions and professional advice on

production is concentrated in BT Products AB inlarge customer projects.

BT Industries Worldwide Manufacturing Bases

BT Industries presently operates
seven manufacturing bases inEurope and North America.
Products made at these bases are
sold worldwide through BT’s
distributors, wholly or partly
owned by BT, as well as
independent distributors.

ANNUAL REPORT 2001

BT Europe AB, based in Mjölby, Sweden, where the15TOYOTA INDUSTRIES CORPORATION

BT’s products and services are marketed in around 70

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116TOYOTA INDUSTRIES CORPORATIONANNUAL REPORT 2001

financial items by 22% to SEK824 million.

Topics for Fiscal 2000

Another highlight during the year was theThe past year was highlighted by Toyota Industries’

acquisition of the remaining 55% of CESAB, an Italianacquisition of BT. Internally, the focus remained on day-manufacturer of counterbalanced trucks.

to-day operations and continued growth. Orders

Within business area BT EUROPE, the new range ofreceived rose by 20% to SEK12,060 million, sales by

ORION powered pallet trucks was introduced. These

18% to SEK11,518 million and income after net

trucks exemplify how advanced technology andmicroelectronics can be used to benefit customers in

Net Sales of BT Industries

the form of performance and reliability.
During the year BT EUROPE also introduced new,(SEK Million)

12,000AC-powered electric counterbalanced trucks. The
main advantages of AC power compared with direct
current are higher performance and lower

10,000maintenance costs.
8,000

Also, BT’s hand pallet truck was updated during theyear. Among other things, the new truck has a higher

6,000

lift capacity than its predecessor. In March, BTcelebrated the production of its two millionth BT

4,000

branded hand pallet truck.
2,000For BT EUROPE, 2000 was a year of substantial
market growth, resulting in a high level of activity and0FY

96 97 98 99 00

good financial results. BT has fast-tracked certaininvestments that will raise production capacity forelectric warehouse trucks in Mjölby by slightly over40%. The investment program is also designed to boostproductivity.
A similar program to meet expected future growthhas been implemented at CESAB in Bologna, where
production of counterbalanced trucks has almost
doubled over the last two years.
In terms of earnings, 2000 was a strong year for BTEUROPE. Sales rose by 18% to SEK5,897 million, while
income climbed 23% to SEK590 million. Despite stiffcompetition that resulted in price pressure, thebusiness area was able to maintain its margins through17lower production costs. The business area’s market
share is estimated at 18%.

TOYOTA INDUSTRIES CORPORATION

Within business area BT RAYMOND, several
important products were launched last year, including
the Millennium™ series of powered pallet trucks, highlift orderpickers, and reach trucks designed forperformance, efficiency and ergonomics. Several
technical innovations were introduced as well, such asa clamp that holds a wide range of pallet configurations
securely in place on orderpickers and SMARTi™, acontrol system that captures and analyzes operating
The year was marked by market growth, and at thesame time BT RAYMOND further strengthened its
market position. BT’s share of the North American
warehouse truck market is slightly over 25% for its
own brands. Including the production and supply ofprivately branded products, BT manufactures morethan one of every three warehouse trucks in the North
American market.
Among the highlights of the year was an agreementwith Home Depot. Over a five-year period, BTRAYMOND will supply the home improvement chain
with 12 to 14 thousand electric warehouse trucks,
meeting 90% of its needs during that period.
During the year an expansion was completed at theBrantford plant in Canada, raising production capacity.
Income for 2000 rose by 24% to SEK533 million, thehighest in the business area’s history. Sales increased
by 15% to SEK5,289 million.
For business area BT INTERNATIONAL, 2000 was ayear of continued strong expansion. Invoiced salesrose by 29% to SEK920 million, while orders received
increased 43% to SEK1,001 million. Its average overallmarket share is estimated at between 20% and 25%
excluding Japan, a gain compared with 1999.

ANNUAL REPORT 2001

data on truck functions.