Toyota Industries Report 2011

Toyota Industries Report
Year ended March 31, 2011

2-1, Toyoda-cho, Kariya-shi, Aichi 448-8671, Japan
Telephone: +81-(0)566-22-2511 Facsimile: +81-(0)566-27-5650
www.toyota-industries.com

This report is printed with ink derived from vegetables using a waterless printing process.
Printed in Japan2 0 11Aiming for a Genuinely Global Company with
Strength, Agility and Originality
As experts in materials handling equipment, automobiles, logistics and textile
machinery, Toyota Industries carries out business activities in various countries
and regions around the world to deliver products and services that customers
really need. We are deeply committed to helping to build a more prosperous andcomfortable society for tomorrow’s world. Customers’ smiles are the very thingthat drives Toyota Industries.

Toyota Industries Report 20111

Contents

Financial Highlights

Toyota Industries Corporation
Years ended March 31

Contents

P2

Financial Highlights

P3

Message from the Chairman and President

P 4-5

Top Management Interview

P 6-12Business Activities

Millions of yen% change

2011

2010

2009

2008

2007

¥1,479,839¥1,377,769¥1,584,252¥2,000,536¥1,878,398

Operating income (loss)

68,79822,002(6,621)

96,853

89,954212.7

2011 vs 2010

For the YearNet sales

Environmental Initiatives

7.4%

Outline of Businesses

P 14-15

An Interview with the Chief Environmental Administrator

P 52-54

Materials Handling Equipment

P 16-23

Global Environmental Commitment

P 55

Ordinary income

73,911

31,756

14,343

126,488

108,484

132.7

Automobile

P 24-31

Overview of the Fifth Environmental Action Plan

P 56-57

Net income (loss)

47,205(26,273)(32,767)

80,46059,468—

VehicleP 26-27

Summary of the Fourth Environmental Action Plan

P 58-59

Engine

P 28

Environmental Management

P 60

Research and development expenses

27,78826,826

33,64636,75034,548

3.6

Car Air-Conditioning Compressor

P 29-30

Curbing Global Warming

P 61-62

Cash dividends per share (yen)

50.00

30.00

40.00

60.00

50.00

66.7

Car Electronics

Total assets¥2,481,452¥2,589,246¥2,327,432¥2,965,585¥3,585,857(4.2)%

1,075,939

1,104,929

977,670

1,453,996

1,810,483(2.6)

40,82538,90339,91639,52836,096

4.9

P 31

Resource Utilization / Reduction in Environmental Risk

P 63

Logistics

P 32-34

Environmental Communication

P 64

Textile Machinery

P 35-36

Biodiversity

P 65

TOPICS

P 66

Total net assets

Environmental Data

P 67-68

Number of employees

Corporate Social Responsibility
Impact of the Great East Japan Earthquake andP 38

Business Activities and Their Environmental Impact /P 39

Soil and Groundwater Pollution Countermeasures /Toyota Industries’ Response
Corporate Philosophy

At Year-End

P 67

Trends in Environmental Performance(Toyoda Precepts, Basic Philosophy and CSR Policy)

P 68

Environmental Accounting and On-Site Verification

Corporate GovernanceP 40-43

Relationship with Our Customers

P 44

Relationship with Our Associates

P 45-46

Relationship with Our Business Partners

P 47

Consolidated Eleven-Year Summary

P 70-71

Relationship with Our Shareholders and Investors

P 48

Consolidated Balance Sheets

P 72-73

Relationship with Our Local Communities

P 49-50

Consolidated Statements of Income

P 74

Consolidated Statements of Comprehensive Income

P 75

Consolidated Statements of Changes in Net Assets

P 76-77

Financial Section / Corporate Information
Financial Section

Consolidated Statements of Cash Flows
Corporate Information
Board of Directors, Corporate Auditors and■Net Sales■Operating Income (Loss)■Net Income (Loss)(¥ Billion)
2,500(¥ Billion)
100(¥ Billion)100

P 70-78

60
60
1,500

40
40
20

1,000
20

P 78
P 79-83

80

80

2,000

500

0

0

-20

P 79

(FY) 07

Major Consolidated Subsidiaries

P 80-81

Major Production Bases

P 82

Investor Information

P 83

-40

-20

0

Managing Officers

08

09

10

(FY) 07

11

08■Total Assets■Total Net Assets(¥ Billion)
4,000(¥ Billion)
2,000

3,000

1,500

09

10

(FY) 07

11

08

09

10

11

10

11

■Cash Dividends per Share
(¥)
60
50

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

2

Toyota Industries Report 2011

40
2,000

1,000

1,000

500

30
20
10

0

0

0
(FY) 07

08

09

10

11

(FY) 07

08

09

10

11

(FY) 07

08

09

3

Message from the Chairman and President

We would like to take this opportunity to express our
deepest appreciation for your support of Toyota Industries
Corporation and the Toyota Industries Group.
First of all, we would like to extend our most heartfelt
condolences and prayers to the people and their families
who are suffering or have lost their lives due to the Great
East Japan Earthquake. We sincerely hope for the earlyrecovery and reconstruction of the disaster-stricken areas.
As the economies in and outside Japan move toward
recoveries, the Toyota Industries Group undertook efforts
to ensure customer trust through its dedication to quality
as well as responding quickly to the global economic
recovery trend for our sales expansion. However, the Great
East Japan Earthquake had a significant impact on theJapanese economy. Toyota Industries was also forced tosuspend production partially due to the problem of parts
supply from suppliers.
As a result, despite the earthquake aftermath effects,
we were able to achieve increases in both sales and profit
for fiscal 2011.
For the foreseeable future, although the global
economy is projected to gradually recover, uncertainties
remain with regards to credit contraction, further
deterioration in the employment situation and rising raw
material prices such as crude oil, as well as concerns
about exchange rate fluctuations. The operating

environment in Japan is expected to remain severe, as theimpacts of the earthquake on the economy could become
more serious or prolonged.
Amid this environment, Toyota Industries’ production
activities, which have been adversely affected by thedisaster, have almost recovered through flexible
operations and supplier support. We will also proceedwith business structure and cost structure reforms torealize a solid business structure so that we can weather
any changes in the business climate. As we aim tostrengthen business activities in existing markets,primarily in developed countries, and accelerate businessdevelopment in fast-growing emerging country markets,
we will carry out meticulous market surveys in respective
regions and release products closely matched to eachmarket’s characteristics and needs.
In the medium to long term, we remain firmly
entrenched in the concept of quality first. Upon therecognition that responding to the environment and safety
as well as improving our international competitiveness are
key issues to tackle, we will continue to engage incustomer-oriented development of products andadvanced technologies based on 3Es (energy,
environmental protection and ecological thinking).
In closing, we ask for your continued understanding
and support.
July 2011

Akira Imura

Tetsuro Toyoda

ChairmanPresident

At the Toyota Industries Global
Learning Center / HAZU academy

Akira Imura
Chairman

Tetsuro Toyoda
President

4

Toyota Industries Report 20115

Top Management
Interview

Aiming to Be a Strong Company
to Prevail in an Age of Fierce Competitionin the Global Economy
In the Toyota Industries Report 2011, we welcome Mr. Isao Endo, a business school professor andmanagement consultant well-versed in corporate management strategies and monozukuri(manufacturing). Mr. Endo joined President Tetsuro Toyoda to discuss what Toyota Industries

Great East Japan Earthquake

Cooperating in the Reconstruction ofDisaster Areas and Initiatives for
Early Normalization of Production

must do to realize further growth and advance forward amid the dramatically changing social andToyoda: It’s a pleasure to meet with you today.

economic environment.

I understand you have visited numerous companies bothin and outside Japan. You also have a wealth ofknowledge and insights about the strengths andchallenges pertaining to manufacturing sites.

Mr. Endo observes the Toyoda Automatic Loom, Type G.
The Toyoda Automatic Loom, Type G was invented and completed by
Sakichi Toyoda in 1924. This was the world’s first completely non-stop
shuttle-change automatic loom that enabled smooth shuttle replacement
and weft-yarn supply without a loss of speed during high-speed operation.
The loom also functions to produce no defective products by automatically
stopping operation if the warp yarn breaks. Its all-around performance andeconomic efficiency received top recognition worldwide.

Endo: It is a pleasure for me as well. Your company boasts
the world’s top market share* in the three fields of car
air-conditioning compressors, which have been adopted
by almost all automakers around the world; lift trucks; andtextile machinery (air-jet looms), which represents yourLooking Back at Fiscal 2011

founding business. Toyota Industries truly has a uniqueTurning Around Business Results byStrengthening the Business
Structure via Streamlining

presence within the Toyota Group.
Toyoda: Thank you very much. I anticipate that this
discussion will provide an excellent opportunity to reaffirm

In front of the Toyoda Automatic
Loom, Type G

Toyota Industries’ strengths and challenges.

Endo: The earthquake struck on March 11, shortly before

Endo: To start, let’s turn to the Great East Japanthe end of the fiscal year. How do you sum up yourEarthquake. It has had an enormous impact globally.

performance for fiscal 2011? You were able to dramatically

What are your thoughts? Was there any direct impact

turn around business results compared with the previous

on your business?

fiscal year. What initiatives did you focus on?

Toyoda: The recent earthquake left a deep scar on the

Toyoda: We lowered our break-even point and streamlined

overall Japanese economy, which was on the verge of

our structure via emergency profit improvement activities

economic recovery. It could have an immeasurable impact

implemented since 2008. We also succeeded inon the global economy as well. All of Japan must bandtransforming employees’ awareness by repeatedly

together to overcome this crisis based on the assumption

reminding them that the world has changed and we mustthat the aftereffects will linger for an extended periodchange our mindset accordingly. During this time, allof time.

employees made concerted, unprecedented efforts to

Fortunately, our plants and equipment received nocarry out reduction of fixed costs such as zero-based

Isao Endo

major damage, but some of our plants had to suspend

cost reviews. As a result, we were able to improve our

President, Toyota Industries

Professor, Waseda University Business School, Graduate School of Commerce

operations due to parts shortages. By switching over toprofit structure.

Corporation

Chairman & Partner, Roland Berger Ltd. in Japan

alternative parts and supporting recovery of our suppliers,

Tetsuro Toyoda

Throughout fiscal 2011, we maintained this approachproduction has recovered significantly. We will continue towhile actively expanding sales to take advantage of amake our utmost efforts to restore normal plant operations

market recovery and avoid opportunity loss, and these

Profile of Mr. Isao Endo

as quickly as possible. As for measures to help theefforts produced a certain level of results. At the same

Graduate of the Waseda University School of Commerce. Worked for Mitsubishi Electric Corp. and U.S. strategic consulting

stricken areas, we have donated relief funds and ourtime, it is precisely tough times like these, when thefirms before assuming his current posts. Also holds an MBA from Boston College School of Management. At the Waseda

industrial vehicles. We are also offering assistance to theearthquake is having a huge impact on our performance,

University Business School, he teaches corporate strategy and operation strategy and carries out practical research related

devastated areas by using our own trucks to transportthat every member of the Toyota Industries Group must

to on-site capabilities. Mr. Endo is also engaged in management consulting as chairman of the Japanese subsidiary of thedaily goods. Looking ahead, we will continue to take awork together, muster our courage and move forward.

largest European strategy consulting firm, Roland Berger Strategy Consultants. He is highly esteemed not only in terms ofstrategy formulation but also for consulting that produces results in conjunction with strategy implementation support.

look at various forms of cooperation toward reconstruction.

Mr. Endo also serves on the Supervisory Board of Roland Berger worldwide. He is an adjunct professor at Cheung Kong
Graduate School of Business in China as well as a member of the management advisory committee at Nisshin Steel Co., Ltd.
* Survey by Toyota Industries Corporation for car air-conditioning
compressors and lift trucks; 2010 statistics from the International Textile
Manufacturers Federation (ITMF) for air-jet looms

6

Toyota Industries Report 20117

Top Management
Interview

Manufacturing and Quality

Toyoda: Quality is the lifeblood of a manufacturer. Taking alocation has decreased.

Quality Is the Lifeblood of
Toyota Industries“Customer First” approach, each division works to further

Endo: You mean that 130 books

raise quality by incorporating quality through their own

are not enough. You should readwork processes and promoting close collaboration.

even more (laughter).

Endo: I was just given a look at the Toyoda AutomaticSome people may think quality and profits are

Becoming independent

Loom, Type G on display in the showroom. What should

contradictory, but that’s not true. Raising quality leads topeople who can learn, think andwe learn from the ideas that Sakichi Toyoda incorporated

improved costs and ultimately generates profits. To

act on their own as you envision

into this loom?

maintain quality through genchi genbutsu, I personally visit

is then premised on further

Toyoda: Sakichi invented the loom based on his

work floors to check the production status and progress

improving oneself throughphilosophy of “contributing to society and the world

made toward realizing improvements.

reading books and other means.

through monozukuri.” From the perspective of what truly

Endo: In that sense, the Toyoda Automatic Loom, Type G

What specific measures are

satisfies customers, he created the loom through repeatedcan still be considered the origin and basis of quality

you taking to develop personnel

trial and error, devising simple mechanisms for stoppingand invention.

who will carry the future of

the loom operation when a warp yarn broke to prevent

Quality issues have become a key topic lately, but I feel

Toyota Industries?

producing defective goods. However, his first loom wasthat trust in the quality of Japanese products remains

Toyoda: I feel the advance of IT

compared with competing foreign products without

strong. Japanese manufacturers make proactive efforts to

has had adverse effects on

adequate performance testing, and the results weregenerate knowledge and ideas while achieving further

developing young engineers who will support thehave joined the company recently are thrilled to see anddisappointing. This bitter experience led him to anadvances in operations through ingenuity. It is rare to findcompany in the future. The fact that enormous volumes

experience the process of assembling an engine from start

unwavering conviction that a product should never besuch examples anywhere else in the world. I hope to seeof information can be easily obtained via the Internet

to finish. As a result, they start to learn about the

shipped unless it has been fully and repeatedly tested with

Toyota Industries maintain its basic stance of incorporatingstresses the importance of genchi genbutsu. Informationfascinating aspects of manufacturing.

completely satisfactory results in order to avoid

quality and steadily raise its competitiveness even further

obtained through your own eyes, actions and feelings is

Endo: It’s likely that experiencing such aspects would

inconveniencing customers.

with a high level of awareness of everyone on the work floor.

real-life information. This also applies to manufacturing

lead them to put their heart and soul into the design.

because we tend to immediately rely on electronic sensors

This episode teaches us the importance of going backto the basics and engaging in manufacturing with an

Human Resources Development

and computers.

emphasis on quality based on genchi genbutsu (go andDeveloping Employees Able to
Learn, Think and Act on Their Own

Endo: It seems every company faces the same concerns.

see for yourself).

Developing Human Resources Who
Can Play Active Roles Globally

Toyoda: To address this situation, we are using the Toyoda
Automatic Loom, Type G to teach the origins ofEndo: Toyota Industries’ business development is quite

very beginning. Its importance has become a compelling

Endo: Incorporating quality is achieved not only throughmanufacturing at the Technical Learning Center. Since at

globalized. Accordingly, I understand the proportion ofissue for many companies these days. In some ways, thetools and quality assurance systems but also through auniversity young engineers are taught to use 3D CAD fromyour sales generated overseas is high. Could you tell me

standardization of parts and the globalization of businesshigh awareness of quality and integrity. What are yourthe beginning, they are put to work without having reallyabout the development of global human resources?

seem to have made it easier for quality problems to have athoughts on human resources development?

understood the basics of design and technical drawings.

Toyoda: Now that many of our end users reside outside

more widespread impact. Could you explain Toyota

Toyoda: I believe the basis of human resources

At the Technical Learning Center, we have them draw

Japan, the development of global human resources is not

Industries’ basic stance and initiatives regarding quality?

development is nurturing independent people who canusing drafting boards. It is necessary to instill the basics

a special task but something we must do as a matter oflearn, think and act on their own. I would like to see

before they start using 3D CAD.

course. However, our globalization happened only in theemployees, whether young or experienced, make efforts

Endo: A defect at the design stage can easily lead to apast 10 years, and it has been a dramatic turn of events.

to further improve themselves. Reading many books, formajor quality problem later.

Endo: What happened?

example, can expand the scope of one’s own human

Toyoda: Using 3D CAD enables highly finished technical

Toyoda: In 2000, we made Sweden-based lift truck

qualities and abilities, and help acquire decision-making

drawings at first glance. However, if the basics are

manufacturer BT Industries AB into a Toyota Industries

capabilities.

lacking, a grave design error can occur, leading to

subsidiary. At that time, we had approximately 10,000

Endo: Do you enjoy reading books?

quality problems.

Japanese employees. With the addition of BT Industries’

Toyoda: I read about 120 to 130 books a year. After I

Endo: That’s why it is absolutely necessary to return toapproximately 10,000 employees, we suddenly became afinish, I send them to overseas bases where these books

the basics.

company in which half our employees did not speak

are not readily available locally. They are happy to receive

Toyoda: We are teaching our young engineers theJapanese. Today, Toyota Industries comprises about

them besides being strongly motivated to learn.

fundamentals of drawing. We also have them learn about

40,000 employees worldwide, of which around half are

Unfortunately, however, with more employees posted

steel making and dismantling and assembling engines up

Japanese. Nevertheless, we have few personnel who canoverseas, the number of books I can send to any single

to the point of actually starting the engine. Those who

respond to the globalization of our company. Therefore,

Endo: Quality has been a crucial theme for you from the

President Toyoda explaining the mechanism of the Toyoda Automatic
Loom, Type G

8Toyota Industries Report 20119

Top Management
Interview

developing key components in the car electronics field thatmounting global competition?

respond to the trend toward vehicle electrification; andToyoda: The rivalries among countries and regions, as wellraising the energy-saving performance of textile machinery

as fierce competition among companies that transcends

in terms of electricity and air consumption.

national borders and industries, are unfolding on a scaleEndo: You certainly operate a wide range of businesses. I

and at a pace that are unprecedented. It’s akin to the

now have a much better understanding of how all thesesituation in Japan in the 16th century when many warlords

businesses are carrying out development with a focus onfought fiercely for domination. We are indeed in the midst

addressing environmental and energy issues head-on. I

of a paradigm shift in which the global economic structure

think further extending these initiatives to fields beyond

is undergoing a major change.

your main businesses could lead to the creation of new
business models.
I was told that one warehouse company examined the

Presenting the features of the latest air-jet looms

nurturing assertiveness is the first step.

As this trend unfolds, Toyota Industries has positioned
fiscal 2012 as a year for making a new start in order toprevail in an age of fierce competition in the global

trend toward electric trucks and installed recharging

economy.

equipment and batteries at some of its warehouses.

Endo: I couldn’t agree more. The world will serve as the

Toyoda: We are on the verge of commercializing the samestage for competition among companies.

line of business. We have built a system within our

What about your strategies for each region?

automated storage and retrieval systems whereby

Toyoda: We have been building and operating a global

customer needs have quickly shifted to electrification,batteries are recharged while being stored, and when

optimal structure for each business duly considering

lighter weight and energy savings. To provide whata vehicle arrives its batteries can be replaced within

where we should carry out production, which regions wea dynamic global outlook. Long accustomed to thecustomers really need, we are making Company-wide

one minute.

will supply, how we will carry out sales and how we should

concept of globalization, members set off freely around theefforts to develop new technologies based on the 3Es,

Endo: It appears that interesting new fields are expanding.

share roles with Japan.

world, cultivate new markets and put new businesses on

which stands for energy, environmental protection andAt the same time, however, companies in emerging

Endo: How do you intend to approach emerging

track. Many have a command of multiple languages, andecological thinking. We are honing our elemental

countries are also strengthening their technologicalcountries, which are expected to achieve growth in thein this regard, it is more effective to send such staff totechnologies that contribute to electrification, lighter

prowess. What are your thoughts on this?

years ahead?

overseas subsidiaries than to train them in Japan.

weight and energy savings and expanding our

Toyoda: Products closely resembling our air-jet looms are

Toyoda: Besides China and India, markets in ASEAN and

Endo: Sending talented staff to foreign countries andbusinesses in these fields by applying these technologies

available in some markets. However, the fabric produced

Latin America are also expected to grow. Rather thanenabling them to learn through experience provide ato new products.

by these machines is significantly inferior. This is because

lumping these markets together as emerging countries, it

the software that operates our weaving machinery cannot

is crucial to accurately identify the different needs of eachcountry and provide products that satisfy customers in

Having said that, our textile machinery sales team has

valuable opportunity for significant personal growth. One

Let me give you an example. Our electrically driven

leading retail company sends 30% of its managers

compressors for hybrid vehicles are highly regarded

be emulated by competitors. We will continue tooverseas for three to six months without any specificbecause they can use power from a battery, not an

strengthen the competitiveness of our hardware, but weassignment other than to find out what they want to do atengine, thereby enabling the air conditioner to run evenalso intend to focus our efforts on software development

the company in the future. In the early stage of thisduring an idling stop. In industrial vehicles, we are working

to further raise the added value of all our products.

program, many people were hesitant and worried thetoward improving basic performance such as the uptime

Endo: Japan possesses highly sophisticated technologies

workflow might be disrupted without them, but once thisof electric lift trucks and serializing hybrid lift trucks.

and technological depth. It is also becoming increasingly

program was put into practice, it was not the case and theEndo: I understand that electric lift trucks already make up

important to integrate production technologies andprogram has been a tremendous success.

a high proportion of your lift trucks, which are one of yoursoftware into a “black box” from the perspective ofmainstay products in industrial vehicles.

strengthening global competitiveness.

Technology Development and Product Development

Toyoda: Electric lift trucks account for approximately

Tackling Environmental and Energy
Issues Head-On

60% of our lift trucks. In fact, we are the world’s top

Global Strategies

manufacturer of electric-powered vehicles, with sales ofCarrying Out Business around the
Globe and Making Finely Tuned
Responses in Each Region

over 100,000 electric lift trucks annually.
Endo: As a manufacturer, a great deal of effort is of course

We are also developing plastic glazing that realizes

poured into technology and product development. Whatbetter fuel efficiency through lighter vehicle bodies;directions will you pursue in the future?

developing next-generation clean diesel engines by further

Toyoda: With heightened concerns about such issues asadvancing diesel engines, which emit 20% to 30% lower

while market needs have significantly changed andglobal warming and the depletion of oil resources,

CO2 emissions compared with gasoline engines;

diversified. How is Toyota Industries responding to everEndo: Emerging countries are achieving dramatic growth,

Explaining the mechanism of car air-conditioning compressors

10

Toyota Industries Report 201111

Top Management
Interview

example, we are raising productivity based on the Toyota
Production System (TPS). We are dispatching staff from
the Materials Handling Equipment and Textile Machinery
divisions to locations where TPS is implemented in orderthat they can utilize this system after returning to theirrespective divisions.
Endo: So the overall direction is to combine the total
capabilities of Toyota Industries to maximize yourcomprehensive strengths more than ever.
Toyoda: That’s right. I often sail for enjoyment. On days
with no wind, I gaze at the distant ocean, observe far-off

Toyota Industr ies R epor t

2011

Business Activities

waves and read the wind before it arrives.
Endo: Acting before the wind arrives by reading the wind
is similar to management then.
these countries in a timely manner.

Today, we have discussed a variety of topics. I haveEndo: How will you respond to markets in North America,

the impression that Toyota Industries is an extremely

Outline of Businesses

P14−15Materials Handling Equipment

P16−23

Europe and other developed countries?

unique company filled with possibilities, plus a sense of

Toyoda: Despite lower growth, Japan and other developed

anticipation about what you will do next.

countries are big markets. Therefore, we must continue to

Toyoda: We will make our best efforts to meet the

Automobile

protect these markets, whereby it is crucial that we

expectations of our stakeholders. Also, always

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

compete through our high value-added products andremembering our founding spirit and considering whatvalue chain. A prime example is our large-scale automatedsatisfies customers, we intend to contribute to the world

guided vehicle (AGV) that carries containers at theby providing products and services that are useful to

Tobishima container wharf in Aichi Prefecture. This vehiclesociety. I believe this is our corporate social responsibility.

P24−31

Logistics

P32−34

Textile MachineryP35−36can transport a container, which is approximately 45 feetin length and weighs around 30 tons, at a speed of 25
kilometers per hour. It can carry this mountain-like
container and park at a designated location with a marginof error of within 2 centimeters.
Future Aspirations

Deepening Collaboration among
Businesses and Combining Total
Strengths
Endo: Our discussion so far has given me a general ideaof the directions Toyota Industries is pursuing in its
businesses over the medium and long terms. It appears
that collaboration among businesses will become
increasingly important, even in your global strategies andtechnology development based on 3Es.
Toyoda: Precisely. To raise synergies, we are working to
remove barriers and deepen horizontal collaboration
among businesses. We are also striving to standardize
everything possible, such as development and cost
reduction measures. In the vehicle assembly business, for

12

Toyota Industries Report 201113

Outline of Businesses

Logistics

Net Sales

Operating Income (Loss)(¥ Billion)(¥ Billion)

800

30

600

20

400

10

33.2%

200

0

0
(FY)

Percentage of Net Sales

The Logistics Segment is composed of three business pillars: planning, design and operation of distribution centers;
land transportation services; and high value-added services such as cash collection and delivery and cash proceeds
management services and data storage and management services.
Main Services• Logistics planning, operation of
distribution centers• Land transportation services• Cash collection and delivery andcash proceeds management
services• Data storage, management,collection and delivery services

Net Sales

Operating Income(¥ Billion)(¥ Billion)120

6Outline of Businesses

Outline of Businesses

The Materials Handling Equipment Segment develops, produces, sells and provides services for a broad range of
products, from industrial vehicles centered around a full lineup of lift trucks (0.5- to 43-ton capacities) to materials handlingsystems. Lift trucks, a mainstay product of this segment, are delivered to customers around the world under the TOYOTA,
BT, RAYMOND and CESAB brands through Toyota Material Handling Group.

Main Products• Lift trucks• Warehouse trucks• Aerial work platforms• Automated storage and retrieval
systems• Automatic guided vehicles

Business Activities

Business Activities

Materials Handling Equipment

Percentage of Net Sales

7.3%

100
80

4

60
40

2

20
0
(FY)

0

09

10

11

(FY)

09

10

11

-10

09

10

11

(FY)

09

10

11

Textile Machinery
Automobile
From vehicle assembly to parts production, the Automobile Segment engages in a wide variety of car-related businesses.
Leveraging synergies among its business divisions in development and production, the Automobile Segment accounts for
54.3% of consolidated net sales and represents the largest business segment of Toyota Industries.
VehicleWith its strengths as an industry leader in quality, cost anddelivery, the Vehicle Business produces compact to
midsize automobiles.

Net Sales

Net Sales

Main Products• Vitz (Yaris outside Japan)• RAV4• Mark X ZiO(¥ Billion)

Main Products• Air-jet looms• High-speed ring spinning frames• High-speed roving frames

1,000
800
600

Operating Income (Loss)(¥ Billion)(¥ Billion)

60

3

Main Products• Diesel engines(KD, AD, VD)• Gasoline engines(AR, AZ)

Percentage of Net Sales

2.9%

2
40

1
0

20

-1

400

EngineThe Engine Business produces both diesel and gasoline
engines. We co-develop diesel engines with Toyota Motor
Corporation and possess a comprehensive structure
ranging from planning and development to production.

With a history dating back to the invention of an automatic loom by Toyota Industries founder Sakichi Toyoda, theTextile Machinery Business is a world leader in the textile industry backed by an integrated structure that encompasses
development, production, sales and service of weaving and spinning machines.

-2
0

200

(FY)

09

10

11

-3
(FY)

09

10

11

0
(FY)

09

10

11

Operating Income (Loss)(¥ Billion)

Others40

Car Air-Conditioning Compressor
Toyota Industries’ car air-conditioning compressors arehighly acclaimed in terms of their reliability at high operating
speeds and quiet operation in addition to such excellent
environmental-related performance features ascompactness, weight reduction and fuel efficiency.
The Car Air-Conditioning Compressor Business captures
the top global share in unit sales*.

20

Main Products• Fixed-displacement type
• Variable-displacement
type• Electric type

The Others Segment includes consolidated subsidiaries that provide services to Toyota Industries as well as TIBC
Corporation, a joint venture with IBIDEN CO., LTD., which produces semiconductor package substrates for PC
microprocessor units.

0

-20
(FY)

09

10

Percentage of Net Sales* Survey by Toyota Industries Corporation

Main Products• Semiconductor package
substrates

Car Electronics
Utilizing power electronics circuitry technology and electric
drive system development capabilities, the Car Electronics
Business develops and produces electronics products forhybrid vehicles and other electric-powered vehicles.

14

Toyota Industries Report 2011

Main Products• PCU direct-cooling device• DC-DC converters• DC-AC inverters

Net Sales

11

54.3%

Operating Income (Loss)(¥ Billion)(¥ Billion)

60

4

40

2

20

0

0
(FY)

Percentage of Net Sales

2.3%

-2

09

10

11

(FY)

09

10

11

15

Business Activities

Materials Ha n d lin g E q u ip ment
Business Activities

Business Activities

As the industry’s leading manufacturer, Toyota Industries not only provides such materials handlingequipment as lift trucks but also makes proposals for materials handling sites, thereby responding toa wide range of customers’ logistics needs. Supporting logistics around the world, Toyota Industries’
materials handling equipment is connected to your life somewhere, somehow.

16

Toyota Industries Report 201117

Materials Handling Equipment■Materials Handling Equipment Sales(Thousand units)

250
200
150
100
50
0
(FY)

07

08

09

10

11

Toyota Material Handling Group (TMHG)

Market Conditions and Business
Activities in 2010

From Japan
In 2010, emerging country economies, mainly those in
Asia, quickly overcame the global economic downturn,while economies in developed countries, namely
Japan, North America and Europe, steadily trended
toward recovery. As a result, the lift truck market grew
31% over the previous year. In response to thesefavorable market conditions, Toyota Industries
aggressively engaged in sales expansion activities
while maintaining a streamlined structure byimplementing a drastic reduction of fixed costs in theaftermath of the global financial crisis in 2008.
In the lift truck field, we took steps to enhance theappeal of our products by adding a new internalcombustion hybrid lift truck in Japan and expanding ourline of electric lift trucks in North America and Europe. In
emerging countries, we introduced new products
matched to the distinctive needs of each market. As forthe materials handling engineering business, which isrepresented by automated storage and retrieval
systems and automatic guided vehicles (AGVs), we
stepped up our efforts to promote the development ofmarkets outside Japan.
In the Japanese market for aerial work platforms,
weak capital investment in the private sector causeddemand to stagnate. Difficult conditions also continued
in markets outside Japan, with the exception of therecovering Chinese market. We will work to expand
demand for AICHI-brand products, which boast the top
market share in Japan, by providing new products
matched to the changing times and by developing newmarkets. At the same time, we will promote cost
reductions and business efficiency improvements toenhance profitability and build a sustainable and stablebusiness foundation.

As a market leader with extensive knowledge oflogistics needs, Toyota Industries provides a full rangeof lift trucks and other materials handling equipment tocustomers worldwide. TMHG carries out business bygeographically breaking down the global market into
Japan, North America, Europe, ALOMA* and China.
Under the TMHG management structure, we
provide materials handling equipment for the TOYOTA,
BT, RAYMOND
and CESAB■Toyota Material Handling Group Organization Chartbrands. Mutually
utilizing the sales
TMHG
and development
strengths of eachbrand, TMHG is
Japan
North America
EuropeRegionpromotingbusiness
TMHJ
TMHNA
TMHE
Organization
expansion on a
Toyota Material
Toyota Material Handling
Toyota Material
Handling Japan
North America
Handling Europe
global scale.
Brand

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

18

Toyota Industries Report 2011

Global Voices
TMHG is a logistics partner providing industry-leading products and services tocustomers throughout the world.
The following are the voices of a customer and TMHG members from around the globe.

TOYOTABT
CESAB

Customer

From the U.S. Development and Production

Tony Miller (left),
Vice President ofEngineering andManufacturing,
TIEM

Shougou Hyuga,
President,
Tobatakounyu
Co. Ltd.

“The GENEO-HYBRID halved fuel consumption
and CO2 emissions as expected, while maintaining
power equal to that of any internal-combustion lift
trucks. This hybrid lift truck is supporting
environmental management by raising
environmental awareness among employees.”“Since joining TIEM*1, I have truly enjoyed building
new and innovative products. It is rewarding for me
to be involved with a team taking a product designand creating new processes and equipment to seethat product come to life. I also enjoy the continuous
improvement (kaizen) aspect of working for Toyota.”● : TMHG’s major
operation bases

From Sweden

Services

From India

Claus
Christensen,
European Key
Account Director,
TMHE

ALOMA*

China

TMHI

TMHCN

Toyota Material
Handling International

Toyota Material
Handling China

TOYOTABTRAYMONDTOYOTABTRAYMOND

Materials Handling Equipment

Materials Handling Equipment

In the materials handling equipment industry, emerging
countries primarily in Asia, as well as Europe, North
America and Japan, maintained an upward trend intheir respective markets. Toyota Industries vigorously
promoted production and sales activities attuned tomarket recovery in each region. As a result, sales ofour mainstay lift trucks increased both in and outside
Japan, and net sales in fiscal 2011 rose ¥59.0 billion,or 14%, over the previous fiscal year to ¥490.6 billion.

Business Activities

Business Activities

Business Overview in Fiscal 2011

“TMHE provides excellent service to customers
under a powerful service structure comprised ofmore than 4,500 highly trained technicians working
across Europe. We take great pleasure in keeping
our quality products in their best condition for ourcustomers.”

Sales

Virendra Oberoi,
Sales Director,
TMH India“In India, continued economic growth has led to
expansion of the logistics market and generated
brisk demand for materials handling equipment.
TMH India*2 leverages our extensive product lineup
to provide optimum products and services to ourcustomers.”*1: Toyota Industrial Equipment Mfg., Inc. is a materials handling equipment production subsidiary.
*2: Toyota Material Handling India Pvt. Ltd. is a materials handling equipment sales subsidiary.

19

■ North American Market

No. 1 Market Share in Lift Truck Sales* Surveys by Japan Industrial Vehicles Association and Toyota Industries
Corporation, 2010

New Models Excellent in Environmental
Performance and Work Efficiency
Enhancing the Lineup of Hybrid Lift Trucks
In response to growing customer needs for lift trucks
with lower environmental impact and improved
economic efficiency, in July 2010 TMHJ enhanced thelineup of the 3.5-ton GENEO-HYBRID diesel-poweredinternal-combustion hybrid lift truck with additions of
4.0- and 4.5-ton models. To meet diversifying
customer needs, TMHJ also added such options ascabins and heaters.

GENEO-HYBRID

20

Toyota Industries Report 2011

WalkieModel Change for “Walkie” Compact Electric Lift
Truck
In August 2010, TMHJ carried out model changes for
its 0.6- and 0.9-ton “Walkie” compact electric lift
trucks. The updated models are now equipped with aplastic steering wheel for improved operability. Highcapacity batteries and folding steps are also available
as an option for better work efficiency.

Appealing Environmental Performance,
Safety and Logistics Efficiency to the
World
TMHJ participated in LOGIS-TECH TOKYO 2010, an
exhibition held in Tokyo in September 2010. Under thetheme of “Total Solutions for Improved Environmental
Performance, Safety and Logistics Efficiency,” TMHJ
presented a broad range of products and a wealth oflogistics know-how. Live demonstrations of kaizen
examples using its products drew much attention
among the many visitors at the TMHJ booth.
Focusing on the environment and safety, TMHJ willcontinue to create optimum materials handlingsolutions combining its extensive product lineup—
encompassing lift trucks, warehouse trucks,
automated storage and retrieval systems, AGVs
and aerial work platforms—with an abundance oftechnological expertise and a superior service
structure.

LOGIS-TECH TOKYO 2010

The North American lift truck market increased byapproximately 5% in calendar year 2010 comparedwith 2009. Toyota Material Handling North America(TMHNA) remained the market share leader*1 withcombined unit sales of TOYOTA and RAYMOND
brands of approximately 43,000 units, an increaseof 46%.
Toyota, as a full line supplier of lift trucks, remained
the market share leader*1 in North America for the
ninth consecutive year, and Raymond, as a leading
provider of electric lift trucks and solutions used inwarehouse and distribution environments, saw robust
market share growth*1.
*1: Survey by Crist Information & Research, LLC, 2010

Proactively Launching New Products

In fiscal 2011, TMHNA released new models andpromoted its logistics solutions services, reinforcing its
position as a leading supplier of materials handlingequipment in North America.
In addition to commencing production of 8-Series,
4-wheel electric AC lift trucks, Toyota launched salesof 4FD large diesel pneumatic lift trucks (15- to 23-ton
capacities). Quality remains a hallmark of the TOYOTA
brand, and 2010 marked the sixth year TOYOTA wasnamed the lift truck leader*2 in Quality and Value. In
addition, Toyota Genuine
Parts were ranked the bestin Quality and Reliability in
an independent lift truck
parts study*2.
The RAYMOND branddeveloped the new Models
4150/4250 stand-up
counterbalanced lift
trucks featuring the
ComfortStance suspension
platform, which boasts
minimal parts to reduce
maintenance wear andcost as well as increased
maneuverability. To tailor apackage of solutions andservices, the RAYMOND
brand introduced
CustomCare, which

combines unmatched technology, expertise andresources to help customers achieve greater material
handling efficiency. Moreover, the RAYMOND brandstrives to meet the specialized needs of individual
customers by adding the iBattery module, whichenables data-driven battery management, to theiWarehouse fleet optimization system.
In recognition of such initiatives, Plant Engineeringmagazine awarded a 2010 Product of the Year award
to both TOYOTA’s 4FD as well as toRaymond’s Models 4150/4250.
In 2010, Toyota Industrial Equipment Mfg.,
Inc. (TIEM), which is responsible for producing
TOYOTA-brand lift trucks sold in North
America, commemorated 20 years inbusiness and achieved 200,000 consecutive
hours worked without a recordable accident,
according to the Occupational Safety and
Health Administration(OSHA). The 200,000 hours
represents 1,000 work days.
TIEM was also named theprestigious Top Plant in the
U.S. for 2010 by Plant
Engineering.

Materials Handling Equipment

Materials Handling Equipment

In 2010, the lift truck market in Japan grew about 15%
over the previous year thanks to a rise in capital
investment by Japanese companies. Toyota Material
Handling Japan (TMHJ) worked to expand sales to the
manufacturing industry, which has shown an upturn incapital investment, including the transportationequipment sector. We also strengthened sales to otherrobust businesses such as the transportation andwarehousing industries. Reflecting these efforts, unit
sales in fiscal 2011 increased 15% year-on-year to
26,000 units, outperforming the market. As a result,
TMHJ secured a 43.0% share of the Japanese market
in 2010, the second highest in history, and maintained
its top position* for the 45th consecutive year.

Maintaining the Top Market ShareBusiness Activities

Business Activities■ Japanese Market*2: Survey by Peerless Media ResearchGroup, 2010

Bird’s eye view of TIEM

Enhancing Services and Products from a
Customer Perspective
The North American market is expected to show
moderate growth in 2011. TMHNA will look for further
synergies to ensure the full powerof both the TOYOTA andRAYMOND brands are utilized.
TMHNA will continue to offer
customer-centric services andindustry-leading products toenhance efficiency and lower costs
simultaneously.

RAYMOND 4250

21

■ ALOMA and Chinese Markets
Capturing Growing Needs for Materials
Handling Solutions

The economic downturn in Europe came to a halt inearly 2010 as growth started to resume, although therate of market growth differs in respective countries in
Europe. As a consequence, demand in the lift truck
market increased by 20% year-on-year.
Toyota Material Handling Europe (TMHE) has
integrated the sales and service networks representing
TOYOTA and BT brands in more than 30 European
countries, and in doing so, strove for speediermanagement. In fiscal 2011, TMHE worked to capture
latent demand by releasing new models and promoting
materials handling solutions services. As a result,
TMHE recorded unit sales of 49,000 units, an increaseof 26% over the previous fiscal year.

In addition to higher quality and performance of lift
trucks, customer needs are diversifying into the field oflogistics solutions designed to achieve greater
efficiency through effective use of vehicles on hand.
Growth in on-line shopping has made order picking
more important than ever. In response to suchchanges in the market environment, TMHE rolled out
the BT automated order picking solution (AOP). AOP
combines a stacker that automatically follows a
pre-defined picking route within a warehouse and apick-to-voice system that instructs an operator whereto pick specific items, providing large distribution
centers with productivity gains of 40%. TMHE released
the all-new BT Optio order picker to support optimalorder picking efficiency.

Strengthening Electric Lift Truck Lineup

During fiscal 2011, TMHE launched the B300-Series
3-wheel electric lift truck and B400-Series 4-wheel
electric lift truck, in addition to Blitz electric lift trucks,
all under the CESAB brand. With the European lift
truck market showing an upswing, the launch of suchcompetitive models enabled TMHE to seize business
opportunities generated by stronger demand.

Fully Supporting Customers’ Materials
Handling Operations
In fiscal 2012, further growth is expected in theEuropean materials handling market. TMHE will meet
expanding market volume with a strong network
presence of 4,500 service technicians to offer logistics
solutions matched to the individual needs of eachcustomer.

Business Activities in Fiscal 2011

Toyota Material Handling International (TMHI) covers
the ALOMA markets of Asia, Latin America, Oceania,
the Middle East and Africa, while Toyota Material
Handling China (TMHCN) covers the Chinese market.
In 2010, many of these markets have recoveredfrom the effects of the economic slowdown.
Supported by the continued efforts of TMHI and
TMHCN to develop its sales and service capabilities,
unit sales in these markets increased about 80% toaround 35,000 units in fiscal 2011.

Reinforcing Production and Sales
Operations in Growing Markets
In India, the materials handling equipment division of
Kirloskar Toyoda Textile Machinery Pvt. Ltd. (KTTM)
has strengthened sales and service activities based ona full product range. In a market where strong growthis expected to continue, the division has been spun off
and started operations in May 2011 as Toyota Material
Handling India Pvt. Ltd. (TMH India) to further focus on
customers’ needs. Headquartered in Delhi with a
network consisting of sales and service bases in major
cities, TMH India is committed to maintaining the top
market share among imported brands*.
The growing lift truck market in China reached ascale of approximately 190,000 units in 2010,accounting for roughly a quarter of the global market.
In the world’s single largest market, TMHCN has
released lift trucks matched to specific local needs
and carried out aggressive sales promotion activities.
In seeking to expand its business sphere in the
Chinese market, TMHCN will work to boost its
distributor role and reinforce its sales and service
network in major cities.
In Brazil, the lift truck market has reached its
largest scale on the back of the country’s strong
economic recovery. TMHI will utilize an integrated sales
and service network representing both the TOYOTA
and BT brands to respond to customer expectations.

Appealing to Customers at Exhibitions

In August 2010, MOVIMAT, one of Brazil’s largest
logistic, storage and packaging exhibitions, was held inSão Paulo and received more than 28,000 visitors.
Toyota Material Handling Mercosur Comercio deEquipamentos LTDA (TMHM) participated in the
exhibition under the theme of “Toyota Challenge
Experience,” aimed at enabling visitors to feel thepresence of Toyota and BT. The TMHM booth evokedstrong demand for the products on display.
In December 2010, CeMAT India, a showcase forthe latest developments in the areas of materials
handling and logistics, was held in Mumbai and drew
visitors from diverse industries. TMH India exhibited 10
TOYOTA and BT products and appealed the strengths
of both brands to visitors.

Materials Handling Equipment

Materials Handling Equipment

Increasing Unit Sales in Line with Market
RecoveryBusiness Activities

Business Activities■ European Market

Toyota booth at MOVIMAT

Responding to Growing Markets

In 2011, continued market growth is expected in the
ALOMA and Chinese lift truck markets. TMHI and
TMHCN will continue to provide products and services
matched to the distinctive needs of each market.

* Survey by Toyota Industries Corporation, 2010

CESAB B300/B400

22

Toyota Industries Report 2011

Equipment maintenance by service technician

23

Business Activities

Automobile
Business Activities

Business Activities

Toyota Industries is involved in businesses related to an entire automobile, spanning from vehicle
assembly to such automotive parts as engines, car air-conditioning compressors and car electronics.
We are contributing to the creation of eco-friendly and comfortable automobiles by leveraging ourtechnologies and know-how for the electrification, lighter weight and energy savings of automobiles.

24

Toyota Industries Report 201125

Automobile

VehicleBusiness Overview in Fiscal 2011
Panoramic roof

DesignModifyProductionengineering

ModifyModify

Check
Check

Quality assurance
Manufacturing

Productionengineering

Making modifications
every time an issue wasraised at respective stages
led to many redo’s and anincrease in processes.

Check

DesignCheck■Vehicle Production

New approachglazing as a panoramic roof. Toyota Industries willcontinue to develop attractive products that leverage
the distinctive characteristics of plastic glazing.

■Production Preparation: Activities to Reduce Redo’s
and Waste through Division-Wide Collaboration

Automobile > Vehicle

Panoramic roof fitted in
the Prius

Simultaneous Launch of Two Production Lines
After the first-generation Vitz was introduced in 1999,
vehicle production in Japan had been carried out
by Toyota Industries’ Nagakusa Plant and TMC’s
Takaoka Plant. Upon introducing the latest, thirdgeneration Vitz, Toyota Industries has become the sole
producer in Japan. In order to deal with high demand
expected immediately after the sales launch, we
decided to allow mixed production on the production
line used for the RAV4 and Mark X ZiO assembly in
addition to the Vitz dedicated production line.
For smooth mixed production, we implemented

measures to make maximum use of limited space bysharing facilities between the two lines and to
standardize some parts to prevent assembly errors.

Conventional
approach

Automobile > Vehicle

In the automobile industry, growth in the Japanesemarket slowed down, affected by the discontinuation of
the Japanese government’s car replacement incentive
measures. However, there was a market upturn in North
America and continued market expansion in Asia.
In fiscal 2011, unit production rose by 4,000
vehicles, or 1%, over the previous fiscal year to295,000 vehicles, with higher sales of the Vitz (Yaris
outside Japan) offsetting lower sales of the RAV4 andthe Mark X ZiO. Net sales, on the other hand, were
down ¥23.2 billion, or 6%, to ¥375.5 billion due to achange in the composition of vehicles Toyota Industries
produces.

Preparing for Production Launch of the
New VitzBusiness Activities

Business Activities

TOPICS

Qualityassurance
ManufacturingConfirmation by relevant
departments from thedesign stage and reflecting
potential problems in thedrawing beforehand led toreduction in redo’s.

(Thousand units)

A New Approach to Production Preparation
In production preparation of the latest Vitz, we
succeeded in reducing the number of ineffective
processes and further improving the quality of the
final product by raising the level of perfection ofdrawings during the design phase. Specifically, we let
designers go through the actual assembly process,thereby identifying and reducing processes that are
difficult to perform. We also required representatives
from all production-related departments, including
production engineering, quality assurance andmanufacturing, to participate in the design phase.
This form ofsimultaneous designing
enabled us to identify
potential problems andreflect the solutions indrawings in a timely
manner.

400

300

200

100

0
(FY)

07

08

09

10

11

Launching Production of Plastic Glazing
Products for the Lexus LFA
Toyota Industries commenced production of a quarter
window and partition made of plastic glazing for the
Lexus LFA, a two-seater sports vehicle marketed by
Toyota Motor Corporation (TMC) in December 2010.
With an eye to improving fuel economy throughbody weight reduction, we have developed plastic
glazing as a lighter-weight substitute for glass. Our
plastic glazing quarter window and partition fitted in
the Lexus LFA are approximately 30% and 45% lighter,
respectively, than their glass counterparts.
Polycarbonate resin used in plastic glazing
degrades when exposed to sunlight. To solve thisissue, we applied our newly developed hard coating to
the surface of plastic glazing and succeeded indramatically improving its durability. The Prius ,launched in May 2011, is also fitted with our plastic

26

Toyota Industries Report 2011

Starting Production of the New Vitz
for the Japanese Market
Production of the new Vitz

In December 2010, Toyota Industries began productionof the new Vitz for the Japanese market. Production ofa new Yaris model for markets outside Japan isplanned to begin in August 2011.
The Vitz is one of the mainstay models of theoverarching Toyota brand and is sold in more than 70
countries, including Japan and Europe, with cumulative
vehicle sales exceeding 3.5 million units. Since thelaunch of the first-generation model in 1999, we haveengaged in production of the Vitz under consignment
from TMC. We also designed a portion of its upper
body and interior, as well as the RS, a sporty model inthe Vitz family, thereby undertaking a full range ofprocesses from development to production.

Minor Model Change to the Mark X ZiOIn February 2011, we started production of the Mark X
ZiO, which underwent a minor model change. The
update included changes in the front grille andaluminum wheel designs, which resulted in a moresophisticated, sharper appearance with refinedinterior space.

Highest-Level QCD to Contribute to
Development and Production of
Attractive Toyota Cars
Toyota Industries’ Nagakusa Plant maintains thehighest level of quality, cost and delivery (QCD)
among automobile body manufacturers in the Toyota
Group. Our ability to quickly start up production and aflexible structure in terms of production volume andvehicle models are also highly regarded by TMC. We
will leverage these strengths and continue tocontribute to the development and production of
attractive Toyota vehicles.

27

Automobile

EngineAutomobile■Engine Production(Thousand units)

600
500
400

In addition to automobiles, Toyota Industries’ engines
are installed in a variety of eco-conscious products.
Our original 1DZ-III diesel engines are installed in
GENEO-HYBRID diesel-powered hybrid lift trucks(3.5-, 4.0- and 4.5-ton capacities). The GENEOHYBRID roughly halved*1 fuel consumption and CO2
emissions compared with conventional diesel-powered
lift trucks, achieving the world’s highest level ofenvironmental performance.
Our 4Y engines are also used as gas engines andincreasingly adopted by GHP*2 manufacturers in Japanand CHP*3 manufacturers worldwide. These engines
are highly renowned for their high efficiency as well as
longer life and maintenance cycle.
*1: Data measured using Toyota Industries’ standard operation cycles*2: Short for gas heat pump; air conditioner driven by a gas engine*3: Short for combined heat and power; cogeneration system

300
200

Further Expanding Sales of Electric
Compressors

Business Overview in Fiscal 2011

Despite a drop in unit sales of car air-conditioning
compressors in the Japanese market, higher unit sales
in markets outside Japan pushed up overall unit sales
by 2.12 million units, or 13%, to 18.83 million units.
Net sales amounted to ¥191.8 billion, a year-on-yearincrease of ¥14.8 billion, or 8%.
■Compressor Sales(Million units)

25
20
15
10
5

100
0
(FY)

0
(FY)

07

08

09

10

11

Developing Next-Generation Engines

07

08

09

10

11

Toyota Industries has developed and launched aheadof competitors car air-conditioning compressors forengine vehicles that have excellent environmental
performance, including compactness, lighter weight
and fuel efficiency, as well as quieter operation.
In recent years, we have been promoting sales
expansion of electric compressors. In response to thetrend toward the electrification of vehicles, including
hybrid vehicles (HVs), we utilized our electrification
technologies acquired through the development ofmotors and succeeded in the world’s first mass
production of electric compressors. Since initially being
installed in the second-generation Prius in 2003, ourelectric compressors have been fitted in all Toyota
HVs, from the Prius to the Lexus CT200h. Our provensales track record to TMC, coupled with strong
product appeal, also has led to adoption of our electriccompressors by other automakers. In addition,
inquiries for their application in plug-in hybrid vehicles(PHVs) and electric vehicles (EVs) have been increasingfrom around the world.
We intend to further enhance the appeal of our
products and expand sales by capturing the growing
HV, PHV and EV markets.

Automobile > Car Air-Conditioning Compressor

Automobile > Engine

Toyota Industries attained record-high engine
production volume of 614,000 units in fiscal 2011, a
year-on-year increase of 112,000 units, or 22%,
thanks mainly to increased production of KD diesel
and AR gasoline engines. Net sales also increased¥32.3 billion, or 20%, over the previous fiscal year to¥197.3 billion.

Business Activities

Business Activities

Developing and Producing
High-Performance Engines with Low
Environmental Impact

Business Overview in Fiscal 2011

Car Air-Conditioning Compressor

Diesel Engines Highly Acclaimed
Worldwide
Toyota Industries’ diesel engines, fitted in a variety of
Toyota vehicles sold around the world, have gained
high market recognition for their cleaner emissions,
greater fuel efficiency and higher performance.
KD diesel engines, for which production started in
2005, are installed in TMC’s Innovative International
Multi-Purpose Vehicle (IMV) series, and their sales havebeen achieving steady growth mainly in Asia and Latin
America. The V-type 8-cylinder VD diesel engine,which was developed primarily by Toyota Industries, isinstalled in the Land Cruiser, and sold particularly wellin Australia, Russia and the Middle East. The RAV4 forEurope is equipped with
our AD diesel engine thatcleared Euro 5 emission
standards in 2008.

New employee training session

Toyota Industries is committed to developing
next-generation engines by utilizing our long-accumulated
technologies and know-how. In doing so, we haveplaced particular emphasis on human resource
development and implemented a variety of initiatives tonurture the next generation of engineers. For example,
new employees to be engaged in engine development
receive on-site practical training for three months.
During the period, through various experiments they
actually run an engine, learn the basic structure of theentire engine and gain a better understanding
regarding some 800 parts used in a single engine.
Looking ahead, we will continue to focus ondevelopment of highly efficient, environment-friendly
engines.

KD diesel engine

28

Toyota Industries Report 201129

Automobile

Accelerating Product Development
Fine-Tuned to Regional Needs
Toyota Industries strives to collect information andidentify needs through technical service stations forautomakers established in such countries as theUnited States, Germany and China. Such activities
allow us to precisely reflect regionally diverse needs inproduct development and create products that satisfy
customers.
In emerging countries, Toyota Industries hasdeveloped products for compact cars, for which
demand is strong, and strengthened the supply
structure. In North America, Europe and Japan, we
seek to enhance our environmental performance andother technological capabilities to meet the increasingly
strict regulations concerning vehicle fuel efficiency.
We will also strive to establish a solid position as
the leading manufacturer based on superb products interms of performance, quality and price that
outperform competitors.

■Worldwide Bases of Car Air-Conditioning Compressors

DNDE

TDDK
Germany

Germany

YSD

DICH

MACI

China

China

U.S.A.

DIAM
U.S.A.

DSIT
Italy

TICO

DNTS

Japan

Italy

SUBROS

TACK

India

China

TACI
Indonesia

TACG

In fiscal 2011, Toyota Industries posted an increase in
net sales of car electronics products due to a rise inproduction of HVs, including the third-generation
Toyota Prius, and an increase in the number of HVmodels fitted with our electronic products, such as the
Lexus CT200h launched in January 2010.

Assuming a Greater Role in the
HV-Related Field
Toyota Industries develops and produces electronic
components and devices for electric-powered vehicles.
We have steadily expanded the lineup and scope of
vehicle installations, primarily for our auxiliary powersource devices. Upon introducing the third-generation
Prius, we have entered the field of core components fordrive systems.
Auxiliary Power Source Devices
A DC-DC converter converts the high voltage of HV
batteries to a lower voltage level suitable for operating
lights, wipers, horns and other auxiliary devices.
Capitalizing on more than 10 years of experience thatstarted with the first-generation Prius, we succeeded
in developing a more compact, lighter-weight converter
for the third-generation Prius.
As for an electric compressor integrated withan inverter, we have also developed smaller andlighter-weight models and successfully increased thenumber of vehicles installing our products.
We developed an onboard charger optimallydesigned for use with high-voltage batteries by utilizing
our experience in developing EV chargers in the 1990s
and 1,500W AC power source devices. This onboard
charger is installed in the Prius Plug-in Hybrid launchedby TMC in 2009.

Core Components for Drive Systems
Toyota Industries applied our proprietary direct-coolingmethod to develop a device with significantly higher
cooling performance. This direct-cooling device
contributed to the realization of a compact andlighter-weight power control unit (PCU) for thethird-generation Prius. In January 2010, we initiated anelectric power train promotion project that combines
the skills and knowledge of all in-house electric motor
specialists to bolster the development of corecomponents and systems for drive systems.

Model Change of Charging Stands for
PHVs and EVs
Toyota Industries is also involved in the development ofcharging infrastructure to promote greater use of PHVs
and EVs. In October 2010, we launched sales of a new
charging stand for PHVs and EVs jointly developedwith Nitto Kogyo Corporation. This product has
improved ease of use compared with existing models.
It is the first mass-produced charging stand in Japanto feature as a standard specification communication
capabilities that are essential for building a charging
infrastructure network.

Contributing to theRealization of a
Low-Carbon Society
Demand for environment-friendly
automobiles with high energy
efficiency is expected to growmore rapidly, with the trend
toward the electrification ofvehicles likely to expand.
Enhancement of the charging
infrastructure will also take agreater role in promoting the
spread of PHVs and EVs.
Targeting the high-growth,electric-powered vehicle market,
we will accelerate development oftechnologies and products in thefields of auxiliary power source
devices, core components andsystems for drive systems andcharging infrastructure, thereby
making a significant contribution
to the realization of a low-carbon
society.

U.S.A.

DNMY
Malaysia

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

: Consolidated production bases* Survey by Toyota Industries Corporation: Technical service stations: Licensed manufacturers

Prius Plug-in Hybrid fitted with Toyota Industries’ onboard charger

30

Toyota Industries Report 2011

Automobile > Car Electronics

Automobile > Car Air-Conditioning Compressor

In January 2011, Toyota Industries established P.T. TD
Automotive Compressor Indonesia (TACI), a new car
air-conditioning compressor production base torespond to the growing ASEAN automobile markets.
Established within the premises of P.T. DENSO
Indonesia, TACI is a spin-off of DENSO Indonesia’s
compressor business and took over production
operations in June 2011. TACI has been supplying
compressors for the Etios produced by TMC in India.
TACI plans to expand its annual production
capacity from the current 1 million units to 1.6 million
units by fiscal 2016. By establishing a production basein Indonesia in addition to Japan, North America,
Europe and China, Toyota Industries is well positioned
to further augment the global supply structure andmeet growing compressor demand.

Business Overview in Fiscal 2011

Business Activities

Business Activities

Establishment of Car Air-Conditioning
Compressor Production Base in Indonesia

Car Electronics

Charging stand31

Business Activities

Logistics

L o gi stics
highly advanced, efficient logistics services. We are committed to supporting customers by
anticipating ever-changing needs in such areas as the operation of distribution centers, landtransportation services of automotive parts and other products as well as cash collection anddelivery and cash proceeds management services and data storage, management, collection and

Planning, Design and Operation ofDistribution Centersamid the sharp appreciation of the yen, coupled withsuspended production following the Great East Japan
Earthquake in March 2011. To counter the difficult
business climate, we continued to undertake profit
improvement activities to maintain the break-evenpoint, and bolstered our business structure.
In addition to cargo transport, we are also
concentrating on peripheral logistics services, such asoffering various logistics solutions to customers basedon our accumulated know-how. To expand ourbusiness domains, we are providing solutions that offer
the highest logistics efficiency based on the concept ofconsolidated transport of break bulk cargo for frequentdelivery, as well as value-added logistics services thatcombine manufacturing and transportation operations.

Logistics

delivery services.

In fiscal 2011, sales generated by our cash collection
and delivery and cash proceeds management services
and automotive parts transportation services remained
virtually on a par with the previous fiscal year. Net sales
totaled ¥107.7 billion.

Business Activities

Business Activities

Leveraging know-how nurtured on the production work floor, Toyota Industries offers customers

Business Overview in Fiscal 2011

Toyota Industries operates distribution centers forvarious industries and customers. During fiscal 2011,
while operation of existing distribution centersgenerated a relatively steady materials handlingvolume, we continued to promote cost reduction
activities at logistics sites based on the thinking
embodied in the Toyota Production System (TPS) tostrengthen our profit structure.
We are working to promote the Logistics Solutions
Business that combines hardware, software andoperational aspects of logistics and provides optimal
solutions tailored to customer needs. As a result ofcarrying out vigorous sales activities, we successfully
obtained two new orders for the consigned operationof distribution centers.
For example, in February 2011, Toyota Industries
received a new order for the consigned operation of a
distribution center from a wholesaler of pharmaceuticalproducts. Logistics operations in the pharmaceuticalfield require not only accurate sorting and delivery but
also a clean distribution center environment. We will
strengthen our presence in the pharmaceutical field byearning customers’ trust.
We also actively carry out consulting services to
respond to customer needs in an effort to capture
latent demand.

Land Transportation Services

In the first half of fiscal 2011, production volume in theautomobile industry, our principal customer, showedsigns of an upturn spurred by the government’s tax
benefit and subsidy programs for eco cars. This upturn
led to a steady increase in the volume of automotive
parts transported by the Taikoh Transportation Group.
In the latter half, however, the volume ofautomotive parts transportation steeply declined dueto the discontinuation of the aforementioned programs
Taikoh Transportation Group’s land transportation services

32

Toyota Industries Report 201133

Business Activities

Textile M achiner y

Logistics

Asahi Security Co., Ltd. provides cash collection anddelivery and cash proceeds management services on
a 24/7 basis to about 2,300 customers mainly in theretail and service industries. In addition to cash
collection and delivery services tailored to eachcustomer’s specific needs, Asahi Security offers
comprehensive services that include management ofgift certificates and accounting operations at
customers’ retail outlets and aims to be a total service
provider for customers.
In April 2010, Asahi Security opened its 20thbusiness base in Shizuoka Prefecture, further
reinforcing its nationwide support service network. At
each business base, Asahi Security conducts regulartraining on its own as well as emergency training jointlywith local police departments in order to provide safe
and trusted services to customers.
Wanbishi Archives Co., Ltd. provides support toabout 4,000 companies and organizations, including
large financial institutions and government agencies,
through 11 information management centers locatedprimarily in the Kanto and Kansai areas to ensure thesecurity and efficient use of their information assets.
Under its robust security structure, Wanbishi Archives
offers a comprehensive range of services covering theBusiness Activities

Business Activities

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

entire lifecycle of critical information assets, fromgeneration and utilization to storage and destruction.
After the massive earthquake, making a backup of
information assets has become a matter of great
importance in terms of developing a reliable business
continuity plan (BCP). Wanbishi Archives is improving
the quality of its services to achieve higher customer
satisfaction by enhancing its data backup services
through its secure remote backup and storage
operations.
Outside Japan, Wanbishi Archives established alocal subsidiary in Kunshan, China, in September 2010
and launched information assets management services
in the country, thus expanding its operations in growthmarkets.

The Toyoda Automatic Loom, Type G, the origin of Toyota Industries’ establishment, was invented
by Sakichi Toyoda based on his philosophy of “contributing to society and the world throughmanufacturing.” Carrying on our predecessors’ wisdom and commitment to textile quality, we strive
to meet the sensibility of customers who are conscious of the beauty and texture of fabrics.

Expanding the Scope of the Logistics
Solutions BusinessIn our efforts to address customers’ various logistics
needs, we aim to provide more diverse and broader
proposals by promoting the logistics solutions
business in cooperation with the Materials Handling
Equipment Division.
We will continue to provide higher value-added
services, capture business opportunities throughaggressive sales activities and expand our customer
base.

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

Wanbishi Archives Co., Ltd.’s information management center

34

Toyota Industries Report 201135

Textile Machinery
Business Activities

Participated in ITMA ASIA + CITME 2010

Business Overview in Fiscal 2011

Textile Machinery

In the textile machinery field, economic recovery in
Asia, our principal market, fueled higher sales of both
air-jet looms and spinning frames. As a result, Toyota
Industries posted an increase of ¥21.9 billion, or
105%, in net sales to ¥42.7 billion.
■Air-Jet Loom Sales(Thousand units)

12
10
8
6

In June 2010, ITMA ASIA + CITME 2010, Asia’s largest
textile machinery trade show, was held at the Shanghai
New International Expo Centre. Toyota Industries had
one of the largest booths in the exhibition, displaying
five JAT710 air-jet looms to demonstrate theircapability to weave a wide variety of fabrics at highspeed. We also presented our ring spinning frames.
Overall, ourproducts were
well received byvisitors frommany countries,
including China,
India and
Pakistan.

Toyota Industr ies R epor t

2011

Corporate Social Responsibility
Impact of the Great East Japan Earthquake andToyota Industries’ Response

P38

4

Corporate Philosophy

2
Toyota Industries’ booth(Toyoda Precepts, Basic Philosophy and CSR Policy)

P39

0
(FY)

07

08

09

10

11

Corporate GovernancePursuing Higher Added Value

Sales in Fiscal 2011

In China, amid a recovery in sales of our mainstay
air-jet looms, Toyota Industries placed increased
emphasis on after-sales services and sales of spareparts. As part of this effort, we replaced our ShanghaiService Center with the establishment of a wholly
owned subsidiary, Toyota Textile Machinery (Shanghai)Co., Ltd., in May 2010. Accordingly, we organized
campaigns and direct-visit sales activities, which
generated about 1.4 times higher sales of spare parts
in China than the previous fiscal year.
Focusing on providing customer-centric services,
we enhanced Internet sales of spare parts, offered asystem to remotely monitor the operating status ofeach textile machine and promoted sales expansion of
remodeled parts that increase production efficiency. As
a result of these steady efforts, our global market sharein unit sales for air-jet looms reached 36%* in 2010,
marking the world’s No.1* position for the 14th
consecutive year since 1997.

In emerging countries, which have been the driving
force behind global sales of textile machinery in recent
years, demand for premium textile products is growing
stronger among consumers mainly in metropolitan
areas. Toyota Industries has been working to respond tosuch needs by developing top quality machinery thatcan create high value-added textile products, reducing
the use of substances of concern and enhancing theenergy efficiency and operability of our textile machinery.
As part of these efforts, we improved the electronic
shedding device of our air-jet loom. The latest loom,
which enables weaving of a wider range of fabrics at ahigher speed and is equipped with this new electronic
shedding device for better energy efficiency, has beenon the market since May 2011. We remain committed
to striving to provide higher value-added machinery andmeeting diversifying customer needs.

P40−43

Relationship with Our Customers

P44

Relationship with Our Associates

P45−46

Relationship with Our Business Partners

P47

Relationship with Our Shareholders and Investors

P48

Relationship with Our Local Communities

P49−50* Statistics from the International Textile Manufacturers Federation (ITMF), 2010

JAT710 air-jet loom equipped with the optionallyavailable electronic shedding device

36

Toyota Industries Report 201137

Impact of the Great East Japan Earthquake andToyota Industries’ Response
Toyota Industries extends our deepest condolences and prayers to the people who have lost their lives andthose affected by the Great East Japan Earthquake. We sincerely hope for the safety of the people living in,
and a swift recovery as well as reconstruction of, the disaster-stricken areas.

Immediate Response

There were no reported casualties or injuries ordamage to our facilities. The disaster, however,caused suspension or partial suspension of operations
at some of our domestic plants due to shortages inparts supply.
As of early July, except for some plants, production
had almost recovered to pre-earthquake levels throughmeasures that included switching to alternative partsand providing support to our business partners.
We will continue to make our utmost efforts for thecomplete normalization of production activities whileworking to reinforce our risk management structure.

Guided by a strong ambition to “contribute to society
and the world through monozukuri (manufacturing),”
Toyota Group founder Sakichi Toyoda devoted himself
to “endless creativity, inquisitiveness, and the pursuit of
improvement” and made various inventions including
the non-stop shuttle-change Toyoda Automatic Loom,Type G. The spirit of Sakichi is enshrined in the Toyoda
Precepts, formulated in 1935 and passed down today
in our Basic Philosophy, which we established in 1992
and revised in 1998.
The business environment surrounding Toyota
Industries is continuing to evolve rapidly anddramatically. Regardless of changes in the businessenvironment and values, we remain unchanged in ourbelief that realizing our Basic Philosophy is thecornerstone of the Toyota Industries Group’s corporatesocial responsibility (CSR). Acting on this belief, inMarch 2009 we formulated and implemented the
Toyota Industries Group CSR Policy, which clarifies ourrelationships with stakeholders, namely customers,
employees, business partners, shareholders and local
and global communities.
The CSR Policy is divided into nine areas, and the
CSR Committee* confirms and evaluates theimplementation status of this policy and promotes
CSR activities.
* Chaired by the president, the committee convenes twice per year and consistsof directors, managing officers and corporate auditors.

CSR Areas

Customer First
SocialContributions

Environmental
Conservation• Always be faithful to your duties,
thereby contributing to the Company and to theoverall good.
• Always be studious and creative, striving to stayahead of the times.
• Always be practical and avoid frivolousness.
• Always strive to build a homelike atmosphere at workthat is warm and friendly.
• Always have respect for God, and remember to be
grateful at all times.

Basic Philosophy[Respect for the Law]
Toyota Industries is determined to comply with theletter and spirit of the law, in Japan and overseas, andto be fair and transparent in all its dealings.
[Respect for Others]
Toyota Industries is respectful of the people, culture,and traditions of each region and country in which it
operates. It also works to promote economic growthand prosperity in those regions and countries.
[Respect for the Natural Environment]
Through its corporate activities, Toyota Industries
works to contribute to regional living conditions andsocial prosperity and also strives to offer products andservices that are clean, safe and of high quality.
[Respect for Customers]
Toyota Industries conducts intensive product research
and forward-looking development activities to create
new value for its customers.
[Respect for Employees]
Toyota Industries nurtures the inventiveness and otherabilities of its employees. It seeks to create a climate ofcooperation, so that employees and the Company canrealize their full potential.

CSR Policy (Preamble)
Respect for
Employees

Contributing to Sustainable
Development in Harmony
with Society and the Earth

Safety and
HealthFair andTransparent
Business
Activities

ComplianceManagementof Confidential
Information

Toyoda Precepts

Corporate Philosophy

Impact of the Great East Japan Earthquake and Toyota Industries’ Response

Effects on the Toyota Industries Groupand Further Response■ Relief funds• The Toyota Industries Group made monetary
donations through Japan Platform, a non-profit
organization (NPO), and other organizations.
■ Fund-raising activities• Toyota Industries’ management and employees aswell as various employee associations madedonations to the Central Community Chest ofJapan and other organizations.
■ Relief supplies• We donated a total of 31 lift trucks and small
shovel loaders to the affected areas.
• We started sending out daily commodities,
including water, food and hygiene products, withina day after the earthquake.

(Toyoda Precepts, Basic Philosophy and CSR Policy)

Corporate Social Responsibility

Corporate Social Responsibility

Immediately following the earthquake that occurred on
March 11, 2011, Toyota Industries set up an
earthquake countermeasures task force at the Disaster
Control Center located within the Head Office in Kariya
City, Aichi Prefecture. Initial efforts included accounting
for our employees and their families, collecting
information on the quake-caused damage to affiliatedcompanies, customers and business partners, anddevising a plan to proceed with production operations.

Major Support Activities

Corporate Philosophy

Timely andProper
Disclosure

We, Toyota Industries Corporation and our
subsidiaries, contribute to the harmonious andsustainable development of society and the Earththrough all business activities that we carry out in eachcountry and region based on our Basic Philosophy.
We comply with local, national, and internationallaws and regulations as well as the spirit thereof, andwe conduct our business operations with honesty andintegrity.
In order to realize sustainable development, we carryout management with an emphasis on stakeholders,
and we will endeavor to build and maintain soundrelationships with our stakeholders through open andfair communication.
We expect our business partners to support thisinitiative and act in accordance with it.
Access Toyota Industries’ Website for details.
http://www.toyota-industries.com/corporateinfo/philosophy/

38

Toyota Industries Report 201139

Corporate Governance■ Internal Control System■ Corporate Governance Structure

Corporate Social Responsibility

Toyota Industries strives to enhance the long-term
stability of its corporate value and maintain society’s
trust by earnestly fulfilling its CSR commitments inaccordance with its Basic Philosophy.
To that end, Toyota Industries strives to enhance its
corporate governance based on the belief thatmaintaining and improving management efficiency andthe fairness and transparency of its corporate activities
is of utmost importance.

Toyota Industries convenes monthly meetings of theBoard of Directors to resolve important management
matters and monitor the execution of duties bydirectors. Outside directors attend meetings of theBoard of Directors, in which they give opinions and ask
questions as deemed necessary to ensure legality andvalidity of decisions of the Board of Directors as well as
directors’ execution of duties. Additionally, we haveadopted the Managing Officers System, which enables
managing officers to focus solely on the execution of

Toyota Industries has adopted a board of corporate
auditors system. Two full-time corporate auditors andthree outside corporate auditors attend meetings ofthe Board of Directors to monitor the execution ofduties by directors. At the same time, meetings of theBoard of Corporate Auditors are held once a month todiscuss and make decisions on important mattersrelated to auditing. The full-time corporate auditors
carry out auditing by attending primary meetings andreceiving reports directly from directors. Additionally,
we have assigned dedicated personnel, while
corporate auditors monitor the legality and efficiency ofmanagement through collaboration with independent
auditors and the Audit Department.
As a publicly listed company, Toyota Industries
strives to ensure the fairness and transparency ofmanagement. Following the Securities Listing
Regulations stipulated respectively by the Tokyo Stock
Exchange, Osaka Securities Exchange and Nagoya
Stock Exchange, we designated as independent
auditors two outside auditors who have no conflicts ofinterest with our shareholders to further enhance ourcorporate governance.

General Meeting of Shareholders
Selection/
Dismissal

Selection/
Dismissal

ReportingSelection/
Dismissal

Reporting
Cooperation

Corporate GovernanceCorporate Governance

Implementation Structure

Board of Corporate Auditors System

In accordance with the Corporation Law of Japan, in
May 2006 Toyota Industries’ Board of Directors
adopted the Basic Policies for the Establishment of anInternal Control System (Basic Policies) to ensurecompliance, risk management as well as theeffectiveness and efficiency of business operations.
The CSR Committee, during its meeting held in March,assesses the progress made in implementing the
Basic Policies in the year under review and determines
actions for the coming year, including reviewing theimplementation structure and enhancing day-to-day
operational management.
Furthermore, based on the Financial Instruments
and Exchange Law (so-called Japanese SarbanesOxley Act), we have built and continued operating andevaluating an internal control system to maintain thereliability of financial reporting, while assessing theeffectiveness of our internal controls and undergoingaudits by independent auditors. We determine which
Toyota Industries Group companies, including
consolidated subsidiaries in and outside Japan, to
include in the scope of the effective assessment,
taking into consideration the degree of impact on thereliability of our financial reporting. As for the companylevel, process-level, IT in general and financial reporting
controls, the Audit Department reviews the status andprogress and provides guidance on remedial actions if
efforts are not adequate.
We determined that our internal controls overfinancial reporting as of the end of fiscal 2011 areeffective, and accordingly, submitted an Internal
Control Report in June 2011. The report was reviewed
by independent auditors and judged fair in their
Independent Auditors’ Report.

Corporate Social Responsibility

business operations and speed up decision making.
The Management Committee, which is composed of
directors above the executive vice president level aswell as relevant directors, managing officers andcorporate auditors, deliberates on a variety of issues
concerning important management matters such as
corporate vision, management policies, medium-termbusiness strategies and major investments.
Toyota Industries has a divisional organization
system, with significant authority delegated to eachbusiness division. For especially crucial matters,
however, we have established the Business Operation
Committee to enable the president to meet with theheads of each business division regularly to monitor
and follow the status of their business execution. To
strengthen our business structure, in June 2010 we
set up the new position of business division executive
director to perform such duties as drawing up
strategies, while the division heads concentrate on theexecution of business operations. At meetings of theManagement Council, directors, managing officers andcorporate auditors convene to report and confirm themonthly status of business operations and shareoverall deliberations at Board of Directors meetingsand other management-related information. Matterspertaining to quality, safety, human resources, theenvironment and other aspects are discussed atcorresponding functional meetings and by respective
committees.

Basic Perspective of Corporate
GovernanceIndependent Auditors

Board of Corporate Auditors
Board of Directors

Monitoring

ReportingMonitoring Monitoring
Appointment/
Monitoring

Corporate Auditor’s Office

ReportingDiscussion/
Reporting*1: Functional Meetings

President
Directives

Management Committee

Management Council(Deliberates on importantmatters frommanagement’s perspective)(Reports on and confirms
execution ofbusiness operations)

Directives

Discussion/
ReportingDirectives

Reporting(monthly)Business Operation
Committee(Follows up on the executionof business operations)
Directives

Reporting

Functional Meetings*1
Committees*2
Policies

Directors/Managing Officers
Business Divisions/In-House Company/Departments
Subsidiaries/Affiliates

40

Toyota Industries Report 2011

Reporting

ReportingDirectives

ReportingAccounting
Audit

Quality*2: Committees
Emergency Profit
Improvement
CSR

Audit Dept.

Human Resources
Environmental

Internal
Audit

Reporting

Production

Human Resources
Development

Technologies

Safety and Health

etc.

etc.

These entities deliberate and follow up on issues in respective areas.

Emergency Profit Improvement Committee
In response to the rapid downturn in our business environment,
Toyota Industries has established the Emergency Profit Improvement
Committee on December 1, 2008 directly under the president.
Aiming to reduce expenses and other costs, we are carrying out
profit improvement activities throughout the Company via sevendifferent subcommittees.

41

■ Compliance■ Risk Management

Basic Perspective

Implementation Structure

Portable Code of Conduct
Handbook for employees in China(TIK, TIAP, TACK)

Representativecompliance officer
for Europe

Europe: 28 compliance officers

AndreasLundh

North America: 11 compliance officers
Representativecompliance officer
for North America

Asia: 5 compliance officers

Timothy A.
BarkerComplianceofficer for India

T R Nagaraj

Based on the Basic Policies for the Establishment ofan Internal Control System, Toyota Industries is
working to strengthen regulations and a structure topromote risk management. Our proactive measures
are designed to prevent and control potential risks,
and when a risk becomes apparent, to ensure quick
and precise actions to minimize impact.

Basic Perspective
Toyota Industries recognizes the importance ofappropriately managing confidential information andincludes “management of confidential information” as
one of the CSR areas. We are making our utmost
efforts to safeguard and manage confidential
information.

Implementation Structure
Implementation Structure
Business divisions and other departments at the Head
Office develop and promote annual action policies that
integrate measures to prevent and control risks related
to quality, safety, the environment, export transactions,disasters and information security. Progress is
assessed and followed up by each functional
committee such as the CSR Committee and theEnvironmental Committee. The functional departments
at the Head Office define rules and procedures,conduct training and auditing of business operations
and carry out on-site checks from a Group-wide
perspective in an effort to support the activities ofbusiness divisions and consolidated subsidiaries.
Our Crisis Response Manual, which lays out basic
rules to follow when a risk becomes evident, aredistributed not only to top management and heads ofdepartments but also to consolidated subsidiaries.
These basic rules set out procedures and the means
for immediately reporting the occurrence of a risk to
top management, identifying the magnitude of its
impact on society and on our business activities, andtaking appropriate actions to minimize its impact.
In Japan, we conduct immediate action training
and have in place a set of specific rules to follow upon
the occurrence of an earthquake. These rules arecompiled in our Rules in Case of Earthquakes, which
all employees are
required to carry at all
times.

Code of Conduct for TMHE
Group employees in Europe

Corporate GovernanceCorporate Governance

We have put in place a system to promote compliancethroughout the Toyota Industries Group. As part ofefforts to facilitate compliance activities, we have set
up the Compliance Committee and appointed acompliance officer* responsible for overseeing its
operation in each of our consolidated subsidiaries inand outside Japan. Under our CSR Policy, we havealso devised code of conducts befitting the laws andpractices of each country as well as the line ofbusiness at each subsidiary. We are working tofamiliarize every employee with the details via a rangeof educational programs.
We regularly provide executive training in Japanand hold regional compliance officers meetings outside
Japan to make a timely response to any amendments
to laws and regulations, share information on measures
adopted to handle violations or issues and take thenecessary action to prevent recurrence of any problems.
Moreover, Toyota Industries performs a CSR
self-assessment to confirm the status of complianceon an annual basis using a checklist comprised of 60
to 250 items defined for each of the applicable laws.

Basic Perspective

Corporate Social Responsibility

Corporate Social Responsibility

We believe that compliance means more than themere adherence to laws and regulations. It is based on
the behavior of each and every employee inaccordance with ethics and social norms.

If any of these items are found to be insufficient, each
responsible department and respective subsidiaries
work together to make
improvements.
We also operate acompliance hotline thatallows employees and theirfamilies to seek advice oncompliance-related matterswithout being exposed tonegative consequences, aswell as to make adequate
responses. The compliancePamphlet regarding compliancehotline is also madehotlineavailable to our subsidiaries
in Japan. We regularly hand out a pamphlet tosubsidiaries’ employees to inform them of the service.
Major consolidated subsidiaries outside Japan are also
setting up and disseminating information on a similarcompliance hotline through their respective complianceofficers.
As a symbol of these
global activities, the CSR
Committee adopted a logothat combines an image ofthe globe and the message“Doing Business with
Integrity.” This logo is usedon various educational andother in-house materials toraise awareness of theimportance of complianceamong employees.

■ Management of Confidential Information

Under the CSR Policy, we have implemented a system
to promote management of confidential information. To
take appropriate actions against the leakage of theconfidential information or personal data of customers
or employees and to comply with the Unfair
Competition Prevention Act and the Personal
Information Protection Law, the CSR Committee
determines policies, while the Information Security
Subcommittee (led by an executive in charge ofgeneral administration) promotes activities toimplement preventive measures.
Specifically, we perform periodic reviews of ourConfidential Information Management Regulations(originally formulated in April 1987 and last revised in
February 2011) and encourage information security
administrators*1 and information security managers*2
to cultivate awareness among their staff throughworkplace meetings.
Our consolidated subsidiaries around the world
have also developed guidelines for management ofconfidential information and have been promoting
preventive activities mainly through their respective
managers of confidential information.
Examples of such activities include antitheftmeasures, requiring employees to obtain permission
when taking their PCs off the premises and restricting
the copying of electronic data on recording media.
*1: Head of eachdepartment*2: A person within thedepartment,
appointed by theheadCompliance officer
for South America

Edson
Masayuki
UhiedaSouth America: 3 compliance officers* A total of 83 compliance officers as of March 31, 2011
(Subsidiaries in Japan: 36; subsidiaries outside Japan: 47)

42

Toyota Industries Report 2011uct
Code of Conduct
for Raymond
employees inNorth America

Rules in Case of Earthquakes

43Types of Quality Soughtby Toyota Industries●Durability●Ease of use

du●Brand strength●Corporate image●Sales●Service●Workmanship

Designqualitylisten to customer voices and incorporate these into
R&D on new products and functions that anticipate theneeds of the times.
In the lift truck and textile machinery fields, forexample, we operate customer consultation desks andservice centers to directly interface with customers.
We promptly respond to their feedback, while theircomments and requests are fed back to the designand other relevant departments for use in productimprovements and new product development.
As a Company-wide effort, each department
faithfully follows the concept of “jikoutei-kanketsu (build
in quality with ownership)” to incorporate quality ineach process to ensure that no defective products aresent to post-processes. Each department collaborates
to identify quality-degrading factors and theirunderlying causes and puts in place adequate
measures to prevent defects from occurring or
recurring to deliver safety and reassurance to ourcustomers.

Ensuring Customer Safety andReassurance
To provide safe products that customers feel satisfied
and use with a feeling of reassurance, we constantly

44

Toyota Industries Report 2011

Adhering to the Basics of Quality
Assurance
Every year, we issue the Quality Guidelines, which
identify priority quality implementation items to all
production bases in and outside Japan. The progress
made in implementing these guidelines is reviewed atmeetings of the Quality Functional Meeting, while the
top management personally visits production bases inand outside Japan to conduct genchi genbutsu (goand see for yourself) inspections. In fiscal 2011, weplaced top priority on customer viewpoints, prevention
and creating workplaces focusing first and foremost on
quality. Issues raised through these activities are taken
to the Company-wide Council of Heads of Quality
Assurance Departments for the earliest possible
resolution.
In fiscal 2012, we will continue to promote ourCustomer First philosophy, placing particular emphasison enhancing our product planning capabilities,
undertaking actions to prevent defects from occurringand recurring, and building a business structure
matched to customers’ expectations.
Toyota Industries is committed to improving thelevel of customer satisfaction. To that end, we strictly
follow the procedures for each process as specified
and work to ensure that no defective products are sent
to post-processes. We are resolutely implementing thisvery basic practice of quality assurance at production
bases in and outside Japan.

In accordance with our fundamental policy of “creating
workplaces and people capable of autonomously
maintaining occupational health and safety,” Toyota
Industries strives to prevent industrial accidents andrealize better work environments to achieve “zeroaccidents.”
In fiscal 2011, we carried out activities under thefollowing three principal policies.
■ 1) Create a Foundation for Realizing a SafetyOriented Culture
We worked to create a safety-oriented culture withsuch measures as establishing a safety dojo in eachplant and strengthening activities to further raise safety
awareness in addition to basic safety activities asprioritized by each plant.
■ 2) Promote Risk Assessment Activities
We continued to promote risk reduction activities byidentifying crucial processes and performing a review
of each process in accordance with the risk
assessment manual to find and counter any issues.
■ 3) Enhance Safety in the Fundamental Aspectsof Lift Truck Operations
While continuing to require lift truck operators to wear
seat belts at all times, were-evaluated the operating
range of each lift truck andseparated zones designated
for walking and operating lift
trucks.

well as conduct periodic on-site inspections and offer
guidance.
If an industrial accident occurs at any of the Toyota
Group companies or other affiliated companies, details
are sent to each Toyota Industries Group company
and the information is shared for prevention purposes.
During work hours, we conduct a genchi genbutsu
check to raise the safety and health level in each
workplace.
We also have introduced a safety dojo at
subsidiaries outside Japan to help build a foundation
for achieving higher safety and health levels by
nurturing human resources who can autonomously
conduct basic safety practices and introducing a risk
assessment system.

Relationship with Our Associates

Relationship with Our Customers

Placing top priority on our Customer First philosophy,
Toyota Industries undertakes product developmentfrom the customer’s viewpoint.
At Toyota Industries, development of a new
product entails defining specific goals andincorporating quality in every stage from productplanning and development to production preparation,
production, sales and after-sales services. A design
review (DR) is performed at each development
milestone. This system allows a product to proceed to
the next stage only when a responsible businessdivision head examines and approves whether the
product has reached the target quality level from amanagement viewpoint. Should a defect occur after
the product launch, the quality assurance departmentsof each business division immediately devise
necessary measures and review the productdevelopment process to prevent recurrence insubsequent models.

Building a Safety-Oriented Culture that
Aims for Zero Accidents

Brand identity

Site inspection by the president

Ensuring the Highest Quality

Relationship with Our Associates

Corporate Social Responsibility

Corporate Social Responsibility

Carrying on the spirit of founder Sakichi Toyoda,
Toyota Industries strongly believes that quality is the
lifeblood of a company. Maintaining and improving
quality to ensure customer safety and reassurance is
our most important responsibility to our customers.
A “Customer First” philosophy forms the basis of our
CSR approach.
Toyota Industries strives to maintain and improve
the total quality of our corporate activities, which
encompasses “product quality,” “marketing quality”
and “management quality.” “Product quality” isembodied in the safety, eco-friendliness, durability,ease of use andworkmanship of our
products, “marketing
quality” in excellent
sales and service and“management quality”
in our overall
corporate image andbrand strength.

●Safety●Eco-friendliness

ct

qu
alit

y

Quality levels that
customers truly
expectPro“A product should never be sold unless it
has been carefully manufactured and has
been tested thoroughly and satisfactorily.”

ent
em
ity
nag
ual
Ma ity
l
q
ng
g
uri
qua
tin
a ct
rke
nuf
Ma
Ma alityqu

Relationship with Our Customers

Health Management and Improvement
As a task for the medium term, we are promoting
associate health improvement programs to counter
risks associated with aging and greater stress.
Specifically, we provide health guidance for
persons with metabolic syndrome and conductperiodic age-based health education to maintain andpromote their health and wellness.
Mental health care activities include
providing self-care/line-care education,building closer collaboration withexternal medical institutions andenhancing our work-resumption support
systems.

We regret to report that on
November 23, 2010, a fatal
accident occurred at the
Takahama Plant. We are
Separating walking and lift truck operating zones
deeply saddened by this(Kariya Plant)
terrible loss. Pledging never torepeat this kind of accident, we conducted aninvestigation into the cause and drew up a set ofcountermeasures. We conducted a comprehensive
inspection of all equipment at the Takahama Plant andimplemented measures to address problems that wereidentified. Similar measures have been carried out at allother plants as well. We also held an emergency
meeting in each of our workplaces to alert and raisesafety consciousness among our associates.

Associate Wellness and Mental Health Care Activities

Activities

Descriptionss Specific health examinations for metabolic
Health guidance
syndrome
on lifestyles 'UIDANCE ON HEALTH MAINTENANCE FOLLOWING
diseases
specific health examinations
s !GE BASED HEALTH EDUCATION COURSES
Mental healthcares *OB RANK BASED MENTAL HEALTH CARE EDUCATION
s 2ETURN TO WORK SUPPORT THROUGH PROBATIONARY
employment system

Assisting Consolidated Subsidiaries inAchieving Even Higher Safety and Health
LevelsFor our consolidated subsidiaries in Japan, we havebeen working with the relevant departments to hold avariety of seminars on such topics as compliance as

A safety dojo practice at Toyota Industrial Equipment, S.A. (TIESA), a materials
handling equipment production company in France

45

Relationship with Our Business Partners
Establishing Work Environments Where
Diverse Human Resources Can Play
Active Roles

Enhancing Team Strength“Wisdom” =Management Skills“Skills” =Technical Skillss 3KILLS DEVELOPED BYIDENTIFYING PROBLEM AREAS
AND FINDING SOLUTIONS
s -ANAGEMENT TO UNITE
A BROAD RANGE OF ABILITIESTeam Strength
LeadershipTo pursue improvements
thoroughly and continuously“Spirit” = Spirit of harmony

4EAMWORK
7ELL ROUNDED HUMANITY

We believe that team strength is made up of“technical skills” that form the basis of manufacturing
operations, “management skills” to make maximum
use of technical skills and “spirit of harmony” that
supports both. While further enhancing our teamstrength, we are striving to extend and hand it down
beyond all business domains, generations andgeographic regions.
One example of such initiatives is a training
program targeting all administrative staff and engineers
to increase their problem-solving capability. In fiscal
2011, we launched this training program at businessbases outside Japan, with the aim of sharing the way
we work, our perspectives and our values throughout
the Toyota Industries Group.
We are currently working to enhance the skills of
our technical staff primarily by providing training
programs at the Technical Learning Center. At the 48th
National Skills Competition held in October 2010,
Toshiyasu Inaki won a gold medal in the “welding”
category. He will compete at WorldSkills London
2011 along with other skilled professionals fromaround the world.

46

Toyota Industries Report 2011

■ Balance between Work and Child/Nursing Care
We have already rolled out several initiatives to help
our associates balance their work and family. For
example, we regularly hold exchange meetings
regarding child/nursing care tofacilitate communication amongstaff members and increaseawareness. During fiscal 2011,
we set up a page on our intranet
to help associates maintain abalance between work and child/ Diversity Navi exchange
meeting
nursing care.
■ Employment of Persons with Disabilities
We respect the idea of people with and without
disabilities working together and sharing life and workvalues. Under this basic policy, we continue to employ
persons with disabilities every year. They are assigned
to a variety of sections and work with other staff
members to perform their designated tasks. In fiscal
2011, the number and ratio of associates withdisabilities on a non-consolidated basis were 186 and2.05%, respectively.
■ Re-Employment of Retirees
We have established a system to rehire staff ofretirement age, offering them an opportunity to makethe best use of their advanced expertise and skills incarrying out business operations. We have also been
making Company-wide efforts to set up a comfortableworking environment for senior associates.

Creating a Bright, Energetic and Caring
Work Environment
Toyota Industries is creating a work environment that
fosters a dynamic workforce and allows every member
to demonstrate his or her capabilities both as anindividual and as a team. To that end, we believe it isimportant to cultivate teamwork via close communication.
Throughout the world, we are proactively encouraging
communication not only during work hours but also
through social gatherings, sports days, summer
festivals, ekiden long-distance relay races and cheersquads for various sports events.

We have a fair entry process that allows all potential
business partners, regardless of nationality, size andexperience, the same opportunity to offer us theirproducts or services through our Website to achieve
broad and open procurement.
We comprehensively evaluate our business
partners based on quality, price, their adherence todelivery times, technological capabilities and company
stability. We also assess their initiatives for safety, theenvironment and compliance as we strive for the timely
procurement of excellent products at lower costs
based on fair business transactions.

Co-Existence and Co-Prosperity Basedon Mutual Trust
We work hard to realize co-existence and co-prosperity
with our business partners based on mutual trust. We
hold annual procurement policy meetings for major
business partners to gain their understanding andcooperation. In order to consistently procure better
products, we also conduct quality and technical skills
training programs and provide guidance directed
toward improving manufacturing processes atbusiness partners’ production sites.

Reducing Environmental Impact throughEnvironmentally Preferable Purchasing
In order to create environmentally friendly products, we
aim to procure parts, materials and equipment frombusiness partners that always give sufficientconsideration to the environment. Based on ourEnvironmentally Preferable Purchasing Guidelines, we
require our business partners to establish anenvironmental management system. Particularly forparts and raw materials, we make it a rulefor business partners to acquire external
certification on their environmental
management systems such as ISO 14001.
Regarding environmental impact, we
require the suspension and reduction of
the use of substances of concern as wellas the management of usage of thesesubstances if they are included in our
products or manufacturing processes. For
products that will become a component of
Toyota Industries’ products or that will be
used in our manufacturing processes, ourLocalization of Business for Good
Corporate CitizenshipAs a company that undertakes local production
outside Japan, we promote procurement from local
business partners in order to contribute to the local
community.

Relationship with Our Business Partners

Relationship with Our Associates

s %XPERTISE
s 3KILLS
s +NOW HOW

TPS, QC, SQC, etc.

We are implementing a variety of measures to create
work environments where a diverse range of humanresources can fully exercise their capabilities. These
measures include supporting a balance between workand child/nursing care, supporting the employment of
persons with disabilities and enhancing are-employment system for associates who reach themandatory retirement age.

procurement system requires our business partners to
submit in advance a non-use declaration of prohibited
substances as well as data on substances of concern,
including a report on the substances contained inparts. Only after confirmation is carried out do wepurchase these parts.
Corporate Social Responsibility

Corporate Social Responsibility

Toyota Industries believes that increasing teamstrength is vital to forming a dynamic workforce andachieving sustainable corporate growth. We intend tobuild a more solid team strength by combining the“skills,” “wisdom” and “spirit” of each associate.

Fair Competition Based on an Open Door
PolicyFurther Promoting CSR
We provide educationinternally to all relevant
persons for the purposeof strictly complying
with the competition
laws of each country
and to maintain fairbusiness transactions. It
is Toyota Industries’ andour business partners’
policy to strictly abide
by both the letter andMeeting on CSR Guidelines for Business Partners
spirit of laws andregulations while also carefully handling and protecting
confidential corporate information of our business
partners and Toyota Industries.
In fiscal 2011, we developed the CSR Guidelines
for Business Partners, which describe our CSR-related
requirements for our business partners in Japan, andheld a meeting to explain the details to partners. We
also held three study sessions for our major business
partners to encourage their respective CSR activities.
We will
continue topromote activities
around the world
to comply with
CSR throughout
our supply chain.

Materials provided to business partners

47

Relationship with Our Shareholders and Investors
Our Policy regarding Information
Disclosure

Toyota Industries regards returning profits toshareholders as one of the most importantmanagement policies. Accordingly, we strive tocontinue paying dividends and meet the expectationsof shareholders upon taking into consideration suchfactors as business results, demand for funds and thepayout ratio. For fiscal 2011, Toyota Industries paid
annual cash dividends per share of ¥50.0 (interim cash
dividend per share of ¥25.0 and year-end cash
dividend per share of ¥25.0).
■Cash Dividends per Share (Annual)(¥)

60

Toyota Industries strives to promote goodcommunications with its shareholders and investors
and reflect their comments and requests in ourbusiness activities.
For institutional investors and securities analysts,
our management conducts briefing sessions to explain
our quarterly financial results. We also hold small andindividual meetings on an as-needed basis. For
individual investors, we hold corporate briefings to
explain an overview of our business activities andfuture initiatives.
For the purpose of fostering a better understandingof our business activities, we invite our shareholders
for a plant tour immediately following the generalshareholders’ meeting.
Additionally, the Toyota Industries Website features
an Investor Relations page for prompt information
disclosure. We use RSS feeds (in Japanese) to provide
the latest information in a timely manner.

50
40
30
20
10
0
(FY)

07

08

09

10

11

Actively Promoting Social Contribution
Activities

Three Pillars of Our Social Contribution
Activities

While striving to achieve sustainable growth as acompany, we work to fulfill our role as a good
corporate citizen and actively undertake social
contribution activities in every community where we dobusiness in our efforts to help realize a prosperous andhealthy society.
To accomplish this, Toyota Industries proactively
offers cooperation and support with the objective ofcontributing to local communities by providing humanresources, facilities, funds and know-how. Each of ouremployees also strives to contribute to society throughsuch means as volunteer activities.

Toyota Industries is committed to building a close
relationship with every local community in which we
operate, placing particular emphasis on youth
development, the environment and social welfare.

■ Youth Development
With the aim of contributing to the sound growth ofyouth through monozukuri (manufacturing) and work
experiences, we hold events jointly with YouthInvention Clubs, conduct workplace visits and engage
in other activities.
■ Environment
As a member of the local community, we carry out arange of environment-related activities, including
promoting the use of wood thinned from forests in
Structure for Promoting Social
Japan and conserving forests through employee
Contribution Activities
volunteer programs to contribute to the developmentof a sustainable society.
■ Social Welfare
The Corporate CitizenshipSociety
To help develop local
Office within the General
Local communities/NPOs/NGOs/
social welfare organizations
Administration Departmentcommunities where everyone
at the Head Office
enjoys an active life, we holdSocial contribution
Corporate social contribution activities
activities by each
DirectIndirectdeliberates on details of ourvarious social welfare events
employee●Voluntary programs●Establishing andsocial contribution activities
to encourage exchange withsupporting●Lending of facilities andHeartful Club
environments forequipmentwith other relevant
persons with disabilities andinternal
volunteervolunteer activities●Dispatching employeesorganization●Donations●Providing information
departments at meetings ofconduct joint fund-raisingon volunteering
the CSR Committee, which
programs with our●Implementing employee
education
has been established underconsolidated subsidiaries in
our CSR Policy.
Japan.
Corporate Citizenship Office, General Administration Department

Relationship with Our Local Communities

Relationship with Our Shareholders and Investors

Timely and Appropriate Information
Disclosure to Shareholders and Investors

Dividend Policy

Corporate Social Responsibility

Corporate Social Responsibility

Toyota Industries continually carries out timely andappropriate information disclosure for shareholders
and investors. In this way, we raise managementtransparency so that we obtain an appropriatecompany valuation in stock markets. We provide not
only information required under disclosure laws andregulations but also information that fosters a better
understanding of our management policy and businessactivities.

Relationship with Our Local Communities

CSR Committee

Activity Examples (in Japan)■ Available Publications• Financial Results• Annual and Quarterly Financial Reports• Shareholder Reports• Toyota Industries Reports*

Mini Concerts at Elementary Schools* This publication combines our Annual Report and CSR and Environmental Report.

Meeting with institutional investors

In fiscal 2011, Toyota Industries started organizing miniconcerts at elementary schools located in Obu andTakahama cities, Aichi Prefecture. We will continue topromote thisactivity to provide
an opportunity forchildren to refine
their senses withgreat music by
first-ratemusicians.

Mini concert at an elementary school in Obu City

48

Toyota Industries Report 2011

“RECOLO no Mori” Forest Program
Wanbishi Archives Co., Ltd., a subsidiary engaged in
information storage, management, collection anddelivery services, planted 500 Zelkova trees in June
2010. This tree-planting activity is
named after its confidential
document destruction service,“RECOLO” (recycle ecology
locker). The name embodies its
employees’ desire to promote
paper recycling through theirbusiness activities.

“RECOLO no Mori” forest

49

Activity Examples (outside Japan)[India] Environmental Conservation
Initiatives[Germany] Growing Hand in Hand with
the Local Community

Corporate Social Responsibility

Toyota Industr ies R epor t
Kirloskar Toyoda Textile Machinery Pvt. Ltd. (KTTM), a
subsidiary manufacturing and selling spinning frames,
invites local children to its tree-planting event every
year. KTTM also visits elementary schools andprovides a lecture on the environment, thereby making
a joint effort with the local community to promote
environmental conservation.

TD Deutsche Klimakompressor GmbH (TDDK), a car
air-conditioning compressor production subsidiary,
sends gifts to local kindergartens and promotesinternational exchange between local children and thechildren of Japanese employees working for TDDK.
TDDK also participates in sports and other local
events, building a strong bond with the local
community.

2011

Environmental Initiatives

Relationship with Our Local Communities

An Interview with the Chief Environmental
Administrator
Global Environmental Commitment[Italy] Plant Tour and Social Gathering
Events
L.T.E. Lift Truck Equipment S.p.A. (LTE), a materials
handling equipment production subsidiary, invites
members of the local community and hosts plant tours
and social gathering events. In November 2010, LTE
invited local high school students for a plant tour andsocial gathering with its employees, thereby providing
an opportunity to gain a better understanding of thebusiness activities of the company.

Plant tour with local high school students

50

Toyota Industries Report 2011Children taking part in an international exchange gathering[U.S.A.] Supporting NPOs
Toyota Material Handling, U.S.A., Inc. (TMHU), amaterials handling equipment sales subsidiary,
promotes social contribution activities for the local
community. In 2010, TMHU held a fun campaign called
Denim for Dollars, in which employees donate aminimum of US$5 to wear casual clothing to work on
the last Friday of the month. The year-long program
raised US$4,000, which was donated to local NPOs.

P55

Overview of the Fifth Environmental Action Plan

P56−57

Summary of the Fourth Environmental Action Plan

P58−59Environmental Management
Tree-planting event

P52−54

Curbing Global Warming

P60
P61−62

Resource Utilization / Reduction in Environmental Risk

P63

Environmental Communication

P64

Biodiversity

P65

TOPICS

P66■Environmental Data
Business Activities and Their Environmental Impact /Trends in Environmental Performance

P67

Soil and Groundwater Pollution Countermeasures /Environmental Accounting and On-Site Verification

P68

Employees supporting NPO activities

51

Looking Back on the Fourth Environmental
Action PlanQ

Kato: The Fourth Environmental Action Plan placedstrong emphasis on globalization and consolidated
management, and we extended the scope of the plan
to include both Toyota Industries and consolidated
subsidiaries in and outside Japan. We successfully
attained all the numerical targets set forth in the plan,and I believe that the activities in the past five years
have allowed us to build a global foundation to tackle
environmental issues.

Senior Managing Director

An Interview with the Chief
Environmental Administrator

Having completed the Fourth Environmental Action Plan at
the end of fiscal 2011, Toyota Industries has proceeded torenew its efforts under the new Fifth Environmental Action
Plan, starting from fiscal 2012.
Many environmental problems, including global warming,
are becoming even more serious, and companies are also
required to work even harder to counter these problems.
Amid such circumstances, we asked Masafumi Kato, Senior
Managing Director and chief environmental administrator, toreview what we have done and achieved under the Fourth
Environmental Action Plan and how Toyota Industries will
carry out environmental conservation activities through thenew plan.

52

Toyota Industries Report 2011

Kato: In production activities, we have implemented arange of initiatives under the belief that reduced
environmental impact directly results in lower costs.
First of all, we placed the highest priority on
reducing CO2 emissions. Over the course of five years,
society’s concerns regarding global warming haverisen significantly, making CO2 reduction essential forbusiness activities.
To fulfill our responsibility, we formed a Companywide cross-sectional committee to specifically handle
issues related to the reduction of CO2 emissions. Whilelowering CO2 emissions by means of large-scale
investments, we made Company-wide efforts to
reduce energy loss by augmenting our internal ESCO*
activities and raising awareness among employees toreduce waste. Through these activities, we achieved amarked improvement in this area.
On the product development front, we kept pacewith the general trend toward eco-conscious products.
By focusing on 3Es (energy, environmental protectionand ecological thinking) and developing unique
technologies that anticipate future needs, we
successfully created products with excellent
environmental performance.
In the automobile field, development efforts weredevoted to reducing size and weight as well as
improving the efficiency of our electric compressors,
inverters and converters, which are major componentsof electric-powered vehicles such as hybrid vehicles(HVs) and electric vehicles (EVs). We also accelerated
development of charging stands in order to contributeto the enhancement of a charging infrastructure, which

Environment-Related Issues in Society
in the Future

Q

The targets set forth in the fourthplan have been achieved. What willbe the environment-related
challenges in the future?

Kato: The growing world population is expected tohave an increasingly negative impact on the global
environment. Although the world is becoming steadily
warmer, the international community still fails to takecorrective actions and agree on the international targets
for reducing CO2 emissions other than those defined in
the Kyoto Protocol. There are concerns regarding thedepletion of natural resources, including water and rareearth metals, which are essential in manufacturing. Also,
the loss of biodiversity is increasing as a result of what
human beings have done to the natural environment.
Companies must take these issues more seriously andtake actions accordingly.

Q

What changes will this trend towarda low-carbon society entail in Toyota
Industries’ major business fields?

Kato: Looking at the current automobile industry,vehicles that use gasoline and other fossil fuels are themainstream. But the types of vehicles are diversifying,namely HVs, EVs, biofuel vehicles and fuel-cellvehicles. The markets for HVs and EVs, in particular,
are growing rapidly and are expected to lead the entire
automobile market over the medium term.
HVs and EVs have the potential to expand the roleof vehicles. For example, an EV currently operates onelectricity stored in its battery. In the future, the vehicle
may store electricity and supply it to homes andoffices. An automobile could become not only a meansof transportation but also serve as an energy base.
In the materials handling equipment field,
environmental response is also an important theme, as
evidenced by an increase in the proportion of electricpowered lift trucks. The trend toward electrification is
expected to continue.

An Interview with the Chief Environmental Administrator

An Interview with the Chief Environmental Administrator

Doing What We Can—Our
Own Approach to “CO2
Cancel” Was Born fromThat Desire

Q

What initiatives did efforts focus on
during the five-year period?

* ESCO stands for Energy Service COmpany. ESCO activities involve providing
comprehensive services related to energy conservation and supporting energy
conservation activities.

As a first step, we fully revised our Global
Environmental Commitment and clearly defined basic
policies in promoting this form of manufacturing andthe direction that our activities should follow.
The revised commitment specifies four priority
areas: a low-carbon emission society, a recycling-basedsociety, a society in harmony with nature and promotionof environmental management. The first three arenecessary to make a sustainable society a reality, while
the fourth area forms the foundation for our activities inthese three areas. Placing the highest priority on a
low-carbon society to curb global warming, we willfurther reinforce our initiatives to reduce CO2 emissions.

Environmental Initiatives

Environmental Initiatives

Masafumi Kato

Fiscal 2011 was the final year of the
fourth plan (fiscal 2007 - fiscal 2011).
How do you sum up the outcome ofthis five-year program?

is vital to promoting greater use of electric-powered
vehicles. In addition, we focused on lowering
environmental impact by developing highly fuelefficient, clean diesel engines that meet fuel-efficiency
and emissions standards in Europe and other regions.
In the materials handling equipment field, wedeveloped diesel-powered internal-combustion hybrid
lift trucks with considerably lower fuel consumption
and CO2 emissions compared with conventional
diesel-powered lift trucks, thereby achieving theworld’s top-class environmental performance. Thesehybrid lift trucks have already gained high market
recognition as environment-conscious products. (Formore details, see TOPICS on page 66.)

Toyota Industries’ Response to
These Issues

Q

How should Toyota Industries
address these issues?

Kato: In line with the global trend, greater efforts will
be channeled into achieving a sustainable society. As acorporate citizen, Toyota Industries is pursuingmanufacturing that emits less CO2, uses lessresources and places importance on caring for nature.

Interviewers

Akio Yoshikane

Yoshiaki Oda

Hideki Torii

Yusuke Tsuji

Office Manager,
Environment Office,Plant Engineering &Environment Dept.

Group Manager, ProductEnvironment Group,
Environment Office,Plant Engineering &Environment Dept.

Group Manager, PlanningGroup, Environment
Office, Plant Engineering& Environment Dept.

Planning Group,
Environment Office,Plant Engineering &Environment Dept.

53

Global Environmental Commitment

Q

How should Toyota Industries
contribute to a changing society?

Q

The fifth plan introduces a new
approach to “CO2 cancel.” What is
its aim?

Kato: Our CO2 reduction activities under the fourthplan focused on reducing energy consumption per unitof sales in production activities and raising the energy
efficiency of each product. With the issue of CO2
emission reductions drawing increasing publicattention, the fifth plan defines total CO2 emission
reduction targets we must achieve in our production
operations and products. At the same time, we use
this “CO2 cancel” approach to integrate theachievements made in these two areas. (For moredetails, see “Overview of the Fifth Environmental Action
Plan” on pages 56 and 57.)

Kato: We have been conducting various activities
based on the belief that the most effective way ofprotecting biodiversity is to curb global warming. Whilemaintaining this approach, we will become more directly
involved in the protection of biodiversity. Specifically, we
will undertake a wider range of initiatives such as thedevelopment of biotopes, which provide a greater living
space for plants and animals.

Q

What about human resources
development?

Kato: The fifth plan sets out challenging targets foreach action item, including the reduction of CO2
emissions. Achieving these targets requires the actual
involvement of each and every employee. The
development of capable people goes hand in handwith the development of a sustainable society.
It is true that we must develop internal experts inenvironment-related issues, but we first need to train
every employee to work in an eco-conscious way. I
believe raising the level of awareness of our workforce willtranslate into a bigger force for changing our company.
As part of this effort, as of April 2011 we launched aninternal system to give “eco points” to employees who
have undertaken environment-friendly activities. Throughthis point system, we give every employee a chance toboth think about and take action for the environment.

Global Environmental Commitment[Basic Environmental Philosophy]
We will strive for the preservation of the Environment across all of our business activities and will work todevelop, establish and promote technologies that are compatible with both the environment and economic
activity, aiming to create a rich natural environment for future generations while establishing a sustainable
society which enables the harmonious coexistence of nature with our daily lives.

[Guiding Principle]
We will continue to set challenging targets for further reduction of the environmental impact of our business
operations, while at the same time listening carefully to the voices of our customers and stakeholders andacting in compliance with the letter and spirit of laws and regulations.
We will place the following four items as the highest priority among environmental activities and proactively workon each item.
• Establishing a low-carbon emission society;
Setting the prevention of global warming as our highest priority,– We will press forward the development of products and technologies for pursuing superior energy efficiency
throughout the lifecycle of products.
– We will seek to minimize our CO2 emissions by means of reducing the energy consumption of all ourbusiness operations.
• Establishing a recycling-based society;– We will promote the effective use of resources at the developing stage of products.
– We will seek to minimize our resource consumption and to implement production activities that reduce theamount of unwanted substances.
• Reducing environmental risk and establishing a society in harmony with nature;– We will strive to use more environmentally friendly chemical substances in our products.
– We will seek to minimize environmental risks by working to develop environmentally burden free production
activities.
• Promoting environmental management (preservation of diversity, development of environmental specialists);– We will evaluate and understand how business operations impact biodiversity and take actions based on
the results.
– We will develop environmental specialists who can take the initiative, and extend environmental awarenessnot only to our employees, but also to their families and communities.
We will aim to foster greater communication and teamwork within a wide range of partnerships, including thosewith customers and suppliers, in order to promote sustainable management of the environment. In addition, theToyota Industries Group will act as an upstanding corporate citizen, taking an active part in the planning ofactivities that contribute to various regional communities as well as to our global society.
Aiming at building a sustainable society which enables
the harmonious coexistence of nature with our daily lives• Change to environmentally friendly chemicals• Minimize environmental risks• Development of products andtechnologies in pursuit of superiorenergy efficiency• Achievement of minimum energy
consumption through the innovationsin production engineering• Approach towards biodiversity• Human resources,
environmental awareness• Cooperation with global
society and local communities

54

Toyota Industries Report 2011

Global Environmental Commitment

An Interview with the Chief Environmental Administrator

Key Points of the Fifth PlanQ

How do you perceive Toyota
Industries’ initiatives to protect
biodiversity?

Environmental Initiatives

Environmental Initiatives

Kato: Growth of the electric-powered vehicle market
presents a great opportunity to expand our business inthat we develop motors, inverters and othercomponents that support the evolution of such vehicles.
We will contribute to the advancement of electricpowered vehicles in the form of improved fuel andelectricity efficiencies by reducing size and weight aswell as improving the efficiency of our existing products.
Innovation in vehicle-related technologies anddevelopment of a charging infrastructure play
important roles in promoting the electrification ofvehicles. Although we have been working on thedevelopment of charging stands, we are now
extending the scope of our R&D to provide valueadded products compatible with social needs.
Capitalizing on technologies and know-how
cultivated in the existing business domains, we intend toenter into such fields as energy generation and energy
storage, and create products that will benefit society.
We are committed to offering clean, safe andsuperior products in each of our business fields while
continuing to develop products for the growing
electric-powered vehicle market.

Under the banner of “CO2 cancel,” we will sharethe common goal throughout Toyota Industries, raise
employee awareness and make Company-wide efforts
to reduce CO2 emissions.

action guideline, to be shared and implemented
throughout the Toyota Industries Group.
We fully revised the Global Environmental
Commitment to clearly show our Group-wide
determination to contribute to the realization of asustainable society.

As one tenet under our Basic Philosophy, Toyota
Industries works to contribute to regional living
conditions and social prosperity and also strives tooffer products and services that are clean, safe and ofhigh quality. Accordingly, we established the Global
Environmental Commitment, a specific environmental

Environmental risk
reduction
Society in harmony
with nature
Low-carbon
emission society• Effective use of resources at thedeveloping stage of products• Improvement of productivity interms of resources usage

Recycling-basedsocietyFebruary 15, 2011

Environmental Management

Toyota Industries Corporation

55

Overview of the Fifth Environmental Action Plan
3. Reducing Environmental Risk and Establishing a Society in Harmony with Nature

Working toward “CO2 Cancel”

With an eye to achieving a sustainable society thatprovides a prosperous life in harmony with the naturalenvironment, we have devised the Fifth Environmental
Action Plan for the period from fiscal 2012 to fiscal
2016. Among important environmental issues drawing
increasing public attention, the Toyota Industries Group

Segments

has specified four key areas on which to concentrate
our efforts: 1) establishing a low-carbon emission
society; 2) establishing a recycling-based society;3) reducing environmental risk and establishing asociety in harmony with nature; and 4) promoting
environmental management.

Action Policies
Reduce exhaust emissions toimprove air quality in urban areas
in all countries and regions

Products

Manage chemical substances
contained in products
Further reduce emissions of
substances of concern

Production Minimize environmental risks

FY2013 Targets

Speciﬁc Actions

Subject

Scope•Develop engines that meet future regulations•Investigate chemical substances contained in products andmanage switching over of SVHC*6 and other substances ofconcern to other substances•Reduce emissions of substances of concern mainly frompainting processes– Review painting conditions

Control Items

Base Year (FY)

Targets–

24 (g/m2)

Base Year (FY)

Targets*2

VOC*7 emission

Nonconsolidated(automobile
body)•Firmly establish the use of a preliminary review system– Incorporate measures to reduce environmental impacts inthe business planning stage•Reduce risks related to wastewater•Enhance risk communication with relevant organizations andlocal residents

Emissionvolume per unitof sales*8

1. Establishing a Low-Carbon Emission Society
Segments

Action Policies

Speciﬁc Actions

FY2013 Targets
Subject

Scope

Control Items

Base Year (FY)

Targets

Products

In the Automobile, Materials
Handling Equipment and Textile
Machinery businesses, develop
technologies and products thatwill contribute to reduction of
CO2 emissions

Segments<Automobile Business>•Develop technologies that respond to electrification ofvehicles•Improve energy efficiency of car air conditioners•Develop technologies to enable weight reduction*2

Logistics

General•Develop new technologies to contribute to energy saving of
automobiles<CFCs>•Look for alternative materials
Promoting measures to curb
global warming•Promote horizontal deployment of technologies to curb
global warming•Reinforce and expand ESCO*5 activities

Reduce CO2 emissions throughgreen logistics•Promote modal shift•Reduce the number of transportation vehicles by promoting
mixed transport among business divisions

Nonconsolidated

Total emissions

1991

GlobalCO2 emissions•Energy-derived
CO2•5 gases*3•CO2 fromlogistics

1.15

Nonconsolidated

Products

Action Policies

Speciﬁc Actions

Consolidated*4
subsidiaries Eco-efficiency
in Japan

Nonconsolidated

2006

1.02

1.05

Total emissions

1991

Minus 15%

Eco-efficiency

2007

1.06

Scope

Base Year (FY)

Targets

Control Items<Resources>•Reduce the volume of discarded materials by taking action
at the source, such as improving yields and other measures•Promote internal reuse

Packagingmaterial volume

Nonconsolidated

Waste
generation
volumeNonconsolidated
Consolidated
subsidiaries

56

Toyota Industries Report 2011

Augment and promoteconsolidated environmental
management•Build a global environmental management system andpromote related activities to:– Comply with environment-related laws and reduce
environmental risks in each country– Achieve the highest-level performance in each country

Enhance and promote
environmental education andenlightenment activities•Develop environmental specialists to lead internal
environment-related activities•Plan and promote enlightenment activities that can also be
undertaken at home

Improve eco-conscious brand
image•Reinforce environmental activities according to the contents
and results of Survey of Environmental Oriented Management
Index to pursue higher brand image

Augment activities related toprotection of biodiversity•Identify the impact of business activities on biodiversity andreinforce initiatives by defining specific goals

Promote sustainable plant
activities•Build a plant environment in harmony with nature bypromoting energy reduction and energy conservation throughinnovative production engineering, by reducing energy loss
and by using renewable energy and other means*8*1: Target products Toyota Industries develops and produces. The CO2 reduction volume is calculated based on the method Toyota Industries determined using FY2011 levels
as the baseline.
*2: Details undisclosed due to confidential information and other reasons*3: Greenhouse gases other than CO2, including methane (CH4), dinitrogen monoxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulfur hexafluoride (SF6)*4: Eco-efficiency = Production efficiency in subject year / Production efficiency in base year
Production efficiency = Production indicator (Net sales or production volume, etc.) / Environmental impact of production activities*5: Short for Energy Service COmpany, ESCO provides comprehensive services related to energy savings and supports energy-efficient activities.
*6: Substances of Very High Concern*7: Volatile Organic Compounds*8: Specific targets are set separately and progresses are disclosed via the Company Website or Toyota Industries Report and other media.

“CO2 Cancel”*2

Eco-efficiency

2007

In Japan

Production Enhance resource productivity

Control Items•Further reduce CO2 emitted from production activities inplants•Reduce CO2 emissions by achieving improved efficiency innewly developed products

FY2013 Targets
Subject

Implement initiatives to promote•Reduce use of resources through standardization,
3R (reduce, reuse and recycle)
modularization and reduction of parts
design for effective resource•Reduce use of resources through weight and size reductions
utilization<Packaging materials>•Reduce use of timber-derived packaging materials

Scope

1.32

Overseassubsidiaries
CO2 from
logistics

Minus 10%
(FY09-13 average)

2. Establishing a Recycling-Based Society
Segments

Subject

Overview of the Fifth Environmental Action Plan

Overview of the Fifth Environmental Action Plan

Production

Promote energy reductionand energy conservation
through innovative productionengineering

FY2013 Targets

Speciﬁc Actions

Aim to cancel out CO2 emissions of Toyota Industries throughthese two activities<Materials Handling Equipment Business>•Improve fuel efficiency of internal-combustion lift trucks•Reduce energy loss in electric-powered lift trucks andimprove energy efficiency of components<Energy-derived CO2 emissions>•Promote visualization of energy loss
•Further promote Company-wide reduction activities andaccelerate thorough, horizontal deployment•Develop innovative technologies to reduce CO2 emissions

Action Policies

Reinforce CO2 reduction
activities for “CO2 cancel”<Textile Machinery Business>•Reduce electricity consumption by reducing air consumption•Reduce electricity consumption by lowering windage loss
load
Develop energy conservation
technologies in R&D field

4. Promoting Environmental Management
Environmental Initiatives

Environmental Initiatives

Reduce CO2 emissions by 10%*1 from major products to be developed during the period
covered by the fifth plan

1.06

1.13

Eco-efficiency

2006

1.12

1.16

“CO2 cancel” means to offset CO2
emissions from production activities atplants by reducing CO2 emissions via
improved product efficiency and othermeans. We have set this approach as a
new environmental target starting fromthe Fifth Environmental Action Plan.

CO2 emissions from production activities“CO2 cancel”

Reduction of CO2 emissions via improved product efficiency

57

Summary of the Fourth Environmental Action Plan
warming, resource utilization, reducing environmental
risk factors and consolidated management. As a resultof concerted efforts, we successfully achieved alldesignated targets.

In the Fourth Environmental Action Plan (from fiscal
2007 to fiscal 2011), Toyota Industries laid out specificaction items and numerical targets of the entire Toyota
Industries Group in four key areas: curbing global

Items

Segments

Speciﬁc Actions

Automobile-related
products: Promote
the development oftechnologies that
achieve the best fuelefficiency performancein each country andregion•Develop technologies to reduce vehicle
weight•Develop engines to meet fuel efficiency
targets set during the product planning
stage•Develop high-efficiency car airconditioning compressors

Targets
Control Items
Level

Non-automobile-related •Develop technologies to improve theproducts: Promoteenergy efficiency of lift trucks
the development of•Develop industry-leading, energy-saving
technologies thattechnologies for textile machinery
achieve the best energy •Improve the energy efficiency of industrial
efficiency in the industry engines●•Improved fuel efficiency for new lift trucks•Developed diesel-powered hybrid lift trucks that halve fuelconsumption•Reduced air consumption of air-jet looms•Reduced electricity consumption of high-speed ring spinning
frames•Improved heat efficiency of engines for gas heat pumps●•Serialized electric compressors•Made DC-DC converters for hybrid vehicles more compact
and lighter weight•Made onboard AC inverters more compact•Developed ordinary charging stands•Developed air compressors and hydrogen pumps for fuel-cellvehicles<Energy-derived CO2 emissions>•Streamline production processes•Optimize supplied energy•Promote introduction of alternative energy
sources•Implemented LCA for major products of all business divisions•Developed high-efficiency variable-displacement compressors•Developed compressors featuring new refrigerant compliant
with European environmental regulations

Emissionvolumeper unit ofsales<CFCs>•Review production process•Look for alternative materials
Promote initiatives
worldwide to curb
global warming•Conduct energy diagnoses forconsolidated subsidiaries•Promote widespread use of technologies
that curb global warming•Promote modal shift
Reduce CO2 emissions •Devise green logistics guidelines andthrough green logistics
strengthen cooperation with business
partners

Products

Further promote theuse of designs that are
based on the Designs
for Recycling concept

Resource Utilization

Enhance resource
productivity
Raw
Materials•Steadily improve recyclability by firmly
establishing recyclability assessments for
all products•Develop products that are easy todismantle and recycle<Resources>•Reduce the volume of discarded materials
by taking action at the source, such as
improving yields and other measures•Promote internal reuse<Non-consolidated>
52% reduction vs FY1991●<Consolidated>
10% reduction vsFY2004<Consolidated>
15% reduction vs FY2004●<Nonconsolidated>
30% improvement
vs FY1991<Non-consolidated>
52% improvement vs FY1991●<Consolidated>
10% improvement
vs FY2004(Except CO2 fromlogistics)<Packaging materials>•Reduce use of timber-derived packaging
materials<Nonconsolidated>
5% improvement
vs FY2004<Nonconsolidated>
50% reduction vsFY2004

Reduce use ofgroundwater•Promote recycling of wastewater•Reduce use of water

Groundwateruse (total
amount)Reduce total
environmental impactsof waste disposal•Eliminate landfill disposal at all
consolidated companies•Establish measures to evaluate
environmental impact of waste disposal<Consolidated>
Less than 1% vs
FY1999Landfill volume(Applies to
production sites inJapan)

Toyota Industries Report 2011

<Consolidated>
18% improvement vs FY2004(Except CO2 from logistics)•Implemented recyclability assessments for major products•Created recycle design guidelines•Developed recycling technologies within plastic glazing
window manufacturing processes<Non-consolidated>
25% improvement vs FY2004

Promote stricter
control of and further
reduction in the use of
substances of concern•Eliminate use worldwide of the four
substances of concern (lead, mercury,cadmium and hexavalent chromium)(some parts are exempted)•Increase the number of substances ofconcern that are subject to controls

Reduce exhaustemissions to improve
air quality in urban
areas in all countries
and regions•Develop high-efficiency clean diesel
engines•Introduce top-performing, low-emissions
lift trucks

Further reduce
emissions of
substances of concern●<Non-consolidated>
73% reduction vs FY2004●<Consolidated>
0.2% vs FY1999(Applies to production sites in Japan)●

Targets
Control Items
Level•Reduce emissions of air pollutants,
including VOC*4−Expand use of water-soluble andpowdered coatings−Introduce VOC removal equipment•Reduce emissions of water contaminants

Results/Achievements

Assessment•Discontinued use of four substances of concern, excluding
those exempted•Devised operational rules for management systems for
substances of concern check sheet•Established chemical substances management system•Complied with gas emissions regulations for lift trucks●<Nonconsolidated>
10% reduction vsFY2004<Non-consolidated>
52% reduction vs FY2004●<Consolidated>
5% reduction vsFY2004(Applies to
production sites inJapan)<Consolidated>
51% reduction vs FY2004(Applies to production sites in Japan)●*1<Business partners>•Further promote Environmentally
Preferable Purchasing (EPP)−Improve environmental performanceby supporting the establishment
and promotion of environmental
management systems (EMS)−Enhance management of substances ofconcern
General●●Speciﬁc Actions•Establish environmental risk assessment
systems at the planning stage (incorporate
measures to reduce environmental
impacts in the business planning stage)
Minimize environmental •Ensure appropriate management ofrisks
chemical substances in accordance withsocial conditions•Enhance risk communication withstakeholders such as related organizations Environmental
Production
impactand local residents●<Nonconsolidated>
35% reduction vs
FY1991*1

Ecoefficiency●

Social Contribution

Logistics

Ecoefficiency

Action Policies

General<Group companies>
Strengthen cooperation •Promote consolidated environmental
with business partners
management by enhancing mutualcommunication−Thorough environmental compliance (allcompanies)−Establish EMS (sales and service
companies)−Introduce EPP and environmental
accounting (production companies)−Improve environmental performanceand enhance external environmental
communication (production companies)

Fulfill responsibilities
as a corporate citizen
through two-way
communication andsocial contribution
activities•Issued and distributed 4th edition of EPP guidelines•Supported establishment of environmental management
system for business partners•Implemented SOC*6 monitoring•Established Environmentally Friendly Product Certification
System●•Held regular meetings for business partners in Japan•Implemented compliance audits

●

●

●

Summary of the Fourth Environmental Action Plan

•Steadily reduce lifecycle environmental
impact through implementation of LCA*3
for all products•Develop products with high eco-efficiency•Develop car air-conditioning compressorsthat use refrigerants with low global
warming potential

Segments

Products

Consolidated Management

Summary of the Fourth Environmental Action Plan

Promote energy
reduction and energy
conservation throughinnovative production
Production engineering

58•Developed plastic glazing featuring half the weight of glass•Developed lighter upper automobile body consigned by
Toyota Motor Corporation•Developed impact-absorption CFRP*2 crush box•Improved fuel efficiency of diesel engines•Developed high-efficiency variable-displacement compressors•Commenced development of next-generation variabledisplacement compressor

Items

Environmental Initiatives

Reduce greenhousegases throughout
products’ lifecycles

Waste

Assessment(Unannounced quantitative targets)
Promote the•Further improve the performance ofdevelopment of devices devices for hybrid vehicles
for clean energy•Develop devices for the next generation ofvehiclesfuel-cell vehicles

Curbing Global Warming

Environmental Initiatives

Products*1

Results/Achievements

Reducing Environmental Risk Factors

Action Policies*5•Actively disclose environmental
information−Provide environmental information
concerning products−Enhance Social & Environmental Report*5•Reported details of yearly activities through Toyota Industries
Report•Integrated annual report and social and environmental report•Communicated opinions of chief environmental administrator
to specify environmental visions and directions•Promote social contribution activities that
contribute to preservation of biodiversity•Implement environmental education
for local residents and communication
activities with local communities*5•Engaged in tree thinning at Kaisho-no-Mori•Participated in Present from the Forest Program promoted byenvironmental NGO Friends of the Earth Japan•Dispatched staff for environmental classes (elementary
schools in Nagoya)*1: Details undisclosed due to confidential information and other reasons*2: Carbon Fiber Reinforced Plastics*3: Life Cycle Assessment*4: Volatile Organic Compounds*5: Specific targets are set by year and disclosed via Toyota Industries Report and other media.
*6: Substances of Concern

59Environmental Management

Curbing Global Warming

Status of Our Environmental
Management System

Approach to Environmental Education

Based on the belief that manufacturing starts withnurturing excellent personnel, Toyota Industries
regards human resources development as one of its
most important management tasks and actively carries
out environmental education and enlightenment
activities for employees.
Toyota Industries has clarified the environment-related
knowledge and skills required for each job category andrank, and accordingly, built an environmental education
program. Specifically, we offer rank-based environmental
education, introductory courses for environmental
management and environmental audits as well as
environmental product education.
Based on the latest environmental trends andeffectiveness of education, we will review ourenvironmental education programs and continue topromote the development of capable human resources.

■ Environmental Management Structure

Responsible internal auditor

Environmental Audits

Executive
vice president

s4EAM LEADER
sSupervising auditors
s!UDITORSSpecialized committees

Production Environment Subcommittee

Secretariat

Company-Wide CO2Emission Reduction Conference

Divisions
Materials Handling Equipment
VehicleEngineCompressor
Electronics
Logistics
Textile Machinery

Division-Based
Promotion Committees

Environmental Conservation Organization by manufacturing plants

Environmental Risk Reduction Subcommittees(environmental risk management overseen by plant managers)(respective plants)■ Scope of Group-Wide Environmental ManagementJapan(As of March 31, 2011)
Non-production
companies
Japan: 25
Outside Japan: 92■Production companies: 5
BT Products AB (Sweden)
Toyota Industrial Equipment, S.A. (France)
CESAB Carrelli Elevatori S.p.A. (Italy)
L.T.E. Lift Truck Equipment S.p.A. (Italy)
TD Deutsche Klimakompressor GmbH (Germany)■Production companies: 9
Toyota Industrial Equipment Mfg., Inc. (U.S.A.)The Raymond Corporation (U.S.A.)
Raymond-Muscatine Inc. (U.S.A.)
North Vernon Industry Corp. (U.S.A.)
Indiana Hydraulic Equipment, Corp. (U.S.A.)
Michigan Automotive Compressor, Inc. (U.S.A.)TD Automotive Compressor Georgia, LLC (U.S.A.)
Cullman Casting Corporation (U.S.A.)
Lift-Rite Inc. (Canada)

60

Toyota Industries Report 2011

Asia
■Production companies: 5
TD Automotive Compressor Kunshan Co., Ltd. (China)
Toyota Industry (Kunshan) Co., Ltd. (China)
Toyota Industry Automotive Parts (Kunshan) Co., Ltd. (China)
Kirloskar Toyoda Textile Machinery Pvt. Ltd. (India)
Zhejiang Aichi Industrial Machinery Co., Ltd. (China)

Aichi Corporation (Saitama)
TIBC Corporation (Aichi)
Altex Co., Ltd. (Shizuoka)
IZUMI MACHINE MFG. CO., LTD. (Aichi)
Iwama Loom Works, Ltd. (Aichi)
Tokaiseiki Co., Ltd. (Shizuoka)
Tokyu Co., Ltd. (Aichi)
Nagao Kogyo Co., Ltd. (Aichi)
Miduho Industry Co., Ltd. (Aichi)
Nishina Industrial Co., Ltd. (Nagano)
HANDA Casting Company (Aichi)
Unica Co., Ltd. (Aichi)
Hara Corporation (Gifu)
Mino Tokyu Co., Ltd. (Gifu)

Focusing on inefficient use of fixed energy*, which isnecessary regardless of production volume, Toyota
Industries has launched an energy just-in-time (JIT)
project.
Under this project, we undertook various activities
to achieve a 1,000-ton reduction in our total CO2

Main Activities■ Develop “Energy JIT Guidelines” that guidethe actions of each employee■ Conduct a survey on energy loss when
production equipment is not operating■ Turn power off when not needed byattaching a sticker to turn off equipment
when not in use■ Concept of Fixed Energy and Variable Energy
Variable energy
Consumed only during
operation; proportional toproduction volume

Fixed energy
Consumed constantly
regardless of
production volume

0

8

12

17

23 (hrs)

Sticker to turn off equipment when not in use

emissions in fiscal 2011. By using energy whenneeded and just as much as needed, we successfully
reduced the total CO2 emissions by 3,091 tons andenergy costs by ¥93 million.
We will continue with efforts to identify and totallyeliminate unnecessary energy use.
* Energy constantly consumed regardless of production volume

Energy consumption per day

North America■Non-consolidated: 10 plants■Production companies: 14

EuropeReducing CO2 Emissions
through Energy JIT Activities

Energy consumption per day

Toyota Industries implements annual internal
environmental audits as well as external audits carriedout by an independent third-party institute.
The external audit conducted in fiscal 2011
revealed three minor non-conformances. We are
implementing measures to correct them and making
efforts for improvement.
As for internal audits, we encourage personnel inmanagerial positions to participate in our internal
auditor education program in order to improve thequality of these audits and upgrade day-to-day
operations in each department.

Product Technology Subcommittee

Chief environmental administrator

Head Office
Corporate Planning
R&D
Purchasing
1UALITY !SSURANCE
Human Resources'ENERAL !DMINISTRATION

Production

RX240 series high-speed ring
spinning frame

Curbing Global Warming

Environmental Management

Internal audit

A pneumatic suction cleaning device in a ring spinning
frame removes cotton fluffs and threads broken in thespinning process to prevent adverse effects on otherremaining threads. For this reason, the device provides
continuous suction throughout the spinning
process, and it uses as much as about
15% of the total electricity consumption of
one spinning frame.
In fiscal 2011, we introduced an inverterintegrated suction motor designed to control the
motor rotational speed. The speed is kept low during
normal operation and increased to provide therequired suction power when thread breakage is
detected by a suction pressure sensor. This reduces
electricity consumption of the device alone byapproximately 35% and that of the entire frame byabout 5%.

Environmental Committee

President

Reducing Electricity
Consumption of Ring
Spinning Frames

Environmental Initiatives

Environmental Initiatives

Toyota Industries has positioned environmental
response as one of its most crucial management issues.
To more vigorously undertake environmental response
efforts, Toyota Industries reorganized its environmental
management system (EMS) previously operated
independently at respective plants and adopted aCompany-wide integrated EMS since fiscal 2009, withthe president at the top. The adoption of this EMS has
enabled us to quickly reflect the decisions made bymanagement into our business operations.
To maximize the benefit of the integrated EMS, we
initiated the Company-wide Regulations Integration
Project in fiscal 2011 to consolidate documents that havebeen developed separately by each business division.
We will continue to work on this elimination andconsolidation process and streamline and improve theefficiency of our EMS.

Products

0

8

12

17

23 (hrs)61

Resource Utilization

Production

Reducing CO2 Emissions by
Improving Melting andHolding Processes of
Aluminum Die Casting

Production

New Eco-Conscious
Painting Line Installed at a
Swedish Consolidated
Subsidiary

BT Products AB (BTP), a materials handling equipment
manufacturing subsidiary in Sweden, started operationof a new environmentally designed painting line in
November 2009.
This new painting line heats wash water by utilizing
residual heat from the public district heating system,
which generates heat by incinerating biomass. As aresult, BTP has cut down its energy
consumption and reduced its annual CO2
emissions by 322 tons.

62

Toyota Industries Report 2011

An onboard charger is an electric power converter thatconverts AC voltage used in households into DC voltage
to recharge the high-voltage batteries of plug-in hybrid
vehicles (PHVs). As compared with the onboard charger
fitted in the PHV launched by Toyota Motor Corporationin fiscal 2010, the number of components of the new
charger developed during fiscal 2011 is approximately
40% less. Together with its easier-to-dismantle structure,
it offers higher recycling efficiency, thereby contributing tomore effective resource utilization.

Production

New Wastewater Treatment
Equipment Installed in BTP’s
Painting LineBTP introduced wastewater treatment equipment infiscal 2010 to process wastewater generated by all of
its painting lines. Wastewater from the washing system
is treated and reused within the company. As a result,
the total amount of plant wastewater generated has
been reduced by 133 cubic meters.

Reduction in Environmental Risk

TOPICS

Award Program to Recognize
Environmental Improvement Initiatives
In fiscal 2011, Toyota Industries established aninternal award program to recognize excellent
environmental improvement activities undertaken
in production. The program’s purposes are toshare best practices and raise the level ofenvironment-related activities throughout theCompany. In the first year, we received a total of
18 applications from business divisions, withsome focusing on cutting energy consumption
and others on reducing waste and other aspects.
After a review, four projects were selected toreceive either a “Best Practice Award” or“Excellent Practice Award.”
We will refine this award program to promote
the generation of excellent ideas. We also have aplan to encourage those best-practice projects toapply for external environmental awards.

Products

Chemical SubstanceManagement

Toyota Industries uses a chemical substancemanagement system to accumulate data on materials
used and chemical substances contained in all of its
products. This system is also used to check if products
contain any chemical substances subject to control when
new regulations come into effect in a country or region.
As of fiscal 2011, we started reviewing the enormous
amount of data accumulated to date by checking theaccuracy of information concerning types and amountsof substances contained in our products and applicabilityof new regulations, and worked to improve data quality.
This allows us to quickly and precisely identify the impactof any new regulations on our businesses.

Production

On-site assessment

BTP’s painting line

New Onboard Charger for
PHVs with Improved
Recyclability

Status of Compliance withEnvironmental Laws

In fiscal 2011, there were three instances, including
effluents from the plant exceeding standard values, atrespective subsidiaries within the Toyota Industries
Group. These incidents have been reported to theauthorities concerned, and corrective measures havealready been completed by each of these subsidiaries.
Subsequent confirmations have also been made toensure that there are no recurrences.
We will step up our efforts to prevent environmental
risks by sharing information on environment-related
incidents throughout the Toyota Industries Group,
including their causes and countermeasures taken. We

will also continue to augment Group-wide efforts tominimize environmental impact by conducting
contingency training for emergency situations andother proactive measures.

Production

Resource Utilization / Reduction in Environmental Risk

Curbing Global Warming*1: Blocks of refined aluminum*2: Scrap metal generated from the casting process and recovered for recycling*3: A machine used to inject molten metal into a die cast

Nishina Industrial, a consolidated subsidiary in Japan
engaged in production of hydraulic control devices forconstruction machinery and industrial vehicles,
improved facilities to reduce standby energy
consumed by a machining line for control valves
for lift trucks.
As a result, since January 2011 Nishina Industrial
has been able to monitor the operating status ofproduction equipment and automatically stop or
resume operations of oil mist collectors, pipe
conveyors and other equipment. Nishina Industrial
expects to reduce its annual CO2 emissions by about
9 tons.

Products

Environmental Initiatives

Environmental Initiatives

Since fiscal 2004, Toyota Industries’ Compressor Division
has been working to reduce CO2 emitted from themelting and holding processes of aluminum die casting.
Previously, aluminum ingots*1 purchased frommanufacturers and return scrap*2 generated from thecasting process were melted individually in a melting
furnace within each die casting machine*3. In fiscal 2004,
we started purchasing hot metal (molten aluminum) andat the same time shifted the melting operation done ateach machine to a single central furnace. These efforts
have led to a decrease in CO2 emissions of about 10,000
tons in the six-year period up to fiscal 2009.
In fiscal 2010, the production engineering andmanufacturing departments jointly developed a smallersize molten metal holding furnace based on a proprietaryconcept. This new furnace releases less heat, thereby
reducing electricity consumption by about 70%.
By the end of fiscal 2011, we installed 15 units of thishighly efficient, compact furnace and reduced annual
CO2 emissions by 1,350 tons.
We will carry on improvement activities to pursue
even higher energy efficiency.

Production

Nishina Industrial Co., Ltd.
Successfully Reducing
Standby Energy
Consumption

Plant-Wide Efforts to
Reduce Risks Related toWastewater

Under our policy of minimizing environmental risks,
Toyota Industries undertakes activities to prevent plant
wastewater from being directly released into thesurrounding environment. In addition to the individual
risk-reducing measures taken at each process thatgenerates high drainage load and at the final stage of
wastewater treatment, we are promoting optimum
solutions for plants as a whole.
In fiscal 2010, we conducted on-site inspections of
the drain systems of all plants to check the possibilityof wastewater being released into the surrounding
environment and to visualize the overall wastewaterrelated risks at each plant. Based on the results, wedeveloped guidelines in fiscal 2011, which provide a
set of standard procedures for countering wastewater
risks, and drew up
specific measures
to be implemented
by each plant. We
will continuously
promote thesemeasures fromfiscal 2012
onwards.
Examination of drain system

63Biodiversity

Environmental Communication
Holding an Environmental Seminar for
Customers

Lecture on Environmental Issues

Mr. Manabu Akaike during lecture

At the seminar

Lecture organizer

Hirofumi Sato
Environment Office, Plant
Engineering & Environment Dept.

64

Toyota Industries Report 2011

After the lecture, we received many
comments from participants. Among thesewere that “finding diverse values would
serve to create coexistence with natureand further forge a connection withbiodiversity” and “generating better ideas
from various viewpoints would teach us
valuable lessons in our future endeavor for
improvements.” We will continue toorganize environmental lectures to heighten
employees' respect for the environment
and endeavor to raise the environmental
awareness of each and every employee.

Reception area of “Ecocoro Workshop”* An autonomous Company-wide organization consisting of approximately 1,700
young leaders at manufacturing sites, the organization carries out cleanup andother community activities, promotes interchanges for self-development andholds recreational activities to deepen interaction among members.

Biodiversity

Environmental Communication

Toyota Industries organizes an environmental lecture
every year for raising the environmental awareness of
our employees.
In fiscal 2011, to coincide with the 10th
Conference of the Parties to the Convention on
Biological Diversity (COP 10) held in Nagoya City, Aichi
Prefecture, we invited Mr. Manabu Akaike, a memberof the Biodiversity Public Relations and Planning
Committee of the Ministry of the Environment, to give alecture on how manufacturers should address
biodiversity-related issues.
Mr. Akaike pointed out that the keyword for the
21st century is “comfort,” and future manufacturing
should incorporate the comfort we feel in natural
surroundings.
Through the lecture, we realized that protecting
biodiversity entails not only planting trees andconserving wildlife but also carrying out manufacturingthat makes the best use of nature and coexists withnature.

Since fiscal 2010, Toyota Industries has been carryingout tree thinning at Kaisho-no-Mori (Kaisho Forest) in
Seto City, Aichi Prefecture, under the “TICO Ecocoro
Tree Thinning Activity to Cultivate the Spirit of Ecology”
project primarily conducted by members of the Toyota
Industries Team Leader Association*.
In fiscal 2011, we held the “Ecocoro Workshop,” awoodworking workshop using wood thinned from theforest. About 150 children participated and madepencil holders, photo frames and coasters. At theevent venue, a panel exhibition explaining the roles offorests and the necessity of pruning and thinning inforests in an easy-to-understand manner allowed
children, who will forge the future of our planet, to learn
the importance of forest conservation.
We will carry on and enhance such activities to give
people a chance to get in touch with nature andbecome more aware of the importance of protecting
the natural environment.

Environmental Initiatives

Environmental Initiatives

In fiscal 2011, Toyota Material Handling Japan started
providing an environmental seminar for customers at
the Takahama Plant.
This seminar presents various environmental
initiatives undertaken by Toyota Industries and thosespecifically by the Takahama Plant. The seminar also
includes a session to exchange opinions to enhance
the level of environmental activities conducted by our
corporate customers.
The seminar in fiscal 2011 was well received byparticipants, who showed an interest in our humanresources development through the environmental
dojo and found the contents very useful in launching
their own activities.
We plan to enhance and hold the seminar program
more frequently, with the aim of fostering a better
understanding of our environmental initiatives among
our customers.

Holding Workshop Using Wood Thinned
from Forests

At the workshop

Participating in COP 10 Side Events

COP 10 held in Nagoya, Japan, in October 2010 drewsome 13,000 people from 179 participating countries.
Toyota Industries took part in side events todemonstrate our approach to protecting biodiversity. In
one event organized by the Chubu Economic
Federation, we distributed brochures and organized aposter exhibition to illustrate our environmental
initiatives, including tree thinning and environmental
education for school children.
We will push ahead with initiatives to help protect
biodiversity and convey information on activities to ourstakeholders in an easy-to-understand way.

Posters promoting Toyota Industries’
environmental activities

65Environmental Data

TOPICS

Business Activities and Their Environmental Impact
Environmental Impact
Flow

INPUT

Progress of Environmentally Friendly
Product Certification System

2007

Production

464,957t■ Water [consolidated]
Water consumption

4,124km3

Transportation/
Sales■ Chemical Substances [Japan consolidated]
Emissions/transfers of PRTR law
designated substances
467t■ Waste [Japan consolidated]
Waste generation
91,599t

Usage■ Into Waterways [Japan consolidated]
Water pollutants
30t
Discharge of treated wastewater 2,395km3■ Chemical Substances [Japan consolidated]
PRTR law*2 designated substances 1,318t*2: 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 reporttheir performance to the government. The
government then compiles this data andreleases it to the public.

Recovery/
Recycling

Trends in Environmental Performancesavings, high efficiency and high torqueToyota Industries’ principal environmental performance trends are as follows.

2008

2009

2010

2011

Energy-Derived CO2 Emissions and Eco-Efficiency
Non-consolidated

Super

Super

Rack Sorter
P automatedstorage andretrievalsystemSubsidiaries in Japan

Eco-efficiency (non-consolidated)
Eco-efficiency (consolidated)
Target (non-consolidated)
Target (consolidated)

Certiﬁed products

100W AC inverter

GENEO-HYBRID dieselpowered internal-combustion
hybrid lift truck

RX240 series high-speed
ring spinning frame

800
600
400
200
0
Good

Super

Shovel loader

Totalemissions(kt)

BT Lifter

1.00

Total Water Consumption

Overseas subsidiaries

GroundwaterIndustrial water

Fourth Environmental Action Plan targets (Eco-efficiency)
Non-consolidated: 30% improvement over FY1991 levels
Consolidated: 10% improvement over FY2004 levels

1.56
1.40

1.36

GENEO internalcombustion lift truck

Procurement*1: Terajoule is a unit used to measure heat.
1TJ = 1012 joules■ Raw Materials [consolidated]
Raw materials consumption■ Into the Air [consolidated]
CO2
626,378t-CO2
Greenhouse gases other than CO22,932t-CO2
CO2 from logistics
22,416t-CO2
SOx (Sulfur oxides)
704kg
NOx (Nitrogen oxides)
168t
VOC (Volatile organic compounds) 1,691t* A motor with a magnet embedded inside its rotor, offering improved energy■ Environmentally Friendly Certified Products
Fiscalyear

9,574TJ*1
847,424MWh
87,334km3N
2,246t
5,452kl
6,839t850t

Business Activities and Their Environmental Impact / Trends in Environmental Performance

TOPICSan interior permanent magnet
motor* as its drive motor.
We have been also upgrading
Eco label
this certification system in aneffort to accelerate development ofenvironment-friendly products.
In fiscal 2009, we extended thescope of certification to include products of Toyota
Industries Group companies. As a result, BT Lifter, a
hand pallet truck developed by BTP, obtained
certification in April 2009.
In fiscal 2011, we newly established the Super
Environmentally Friendly Product Certification System.
In addition to the conventional certification criteria, the
new system places particular emphasis on the“Curbing Global Warming Factor.” If a product has a
1.5 times higher figure than the base product, it iscertified as super environmentally friendly andexpected to make significant contributions to curbing
global warming. Certification under the new system isalso performed on previously certified products.
We will continue to seek improvements in terms ofboth product development and certification systems
to create even more eco-conscious products.

R&D/Design■ Energy [consolidated]
Total consumption
Electricity
City gas
LPG
Petroleum products
Coal products
LNG

Environmental Initiatives

Environmental Initiatives

Toyota Industries has been proactively promoting
development and design of eco-conscious products.
In doing so, in fiscal 2007 we launched theEnvironmentally Friendly Product Certification System
to certify products with outstanding environmental
performance. This system consists of an“environmental factor evaluation,” which determines anumerical improvement in environmental efficiency of a
newly developed product compared with the baseproduct (a product used as a standard forcomparison), and a “development process evaluation,”
which reviews the environment-friendliness ofdevelopment processes. In fiscal 2008, ourcertification system won the Chairman’s Prize in the
Eco-Efficiency Award sponsored by the Japan
Environmental Management Association for Industry.
Over a five-year period up to fiscal 2011, nine
products have obtained certification under this system.
Among them, the GENEO-HYBRID lift truck, whichobtained this internal certification in fiscal 2010, won
three awards from external organizations for almost
halving fuel consumption compared with conventional
diesel-powered internal-combustion lift trucks. Our
RX240 series high-speed ring spinning frame, which
received certification in fiscal 2011, reduces its total
electricity consumption by approximately 5% by using

OUTPUT

1.01

1.25

1.00

745

1.10

589

563

1.18
531

Eco-efficiency

1.6
1.52
1.44 1.4
1.18 1.2
1.16 1.0

Public water supply

Water consumption (km3)

4,000

Good

3,000

3,028

3,197
2,534

626

2,343

2,082

2,000
1,000

273

1,267
(FY) 91

Target (Groundwater use)

Fourth Environmental Action Plan targets (Groundwater use)
Non-consolidated: 50% reduction from FY2004 levels(less than 633km3)

04

08

09

10

Good

11

0

(FY) 04

714
08

346

356
09

370

10

341
11

Super

Environmental Impact Index

Waste Moved Off-Site and Eco-Efficiency
DC-DC
converter
400W AC inverter
Super : Super environmentally friendly products■ External Awards Bestowed on GENEO-HYBRID
Award

11th Logistics Environmental Award
7th Eco Products Awards
31st Excellent Energy-Saving Device Award

SponsorJapan Federation of Freight Industries
Eco Products Awards Promotion Council
The Japan Machinery Federation

Details

1.18
Waste moved
off-site (kt)

Toyota Industries Report 2011

1.00

120

Logistics Environmental Technology Development Award

80

Eco Products Awards Promotion Council Chairman’s Award

1.12
109

1.23 Eco-efficiency
1.2 Good
1.15

1.10
111

1.0
121
103

81

40

The Japan Machinery Federation Chairman’s Award
Good

66

Fourth Environmental Action Plan targets (Eco-efficiency)
Non-consolidated: 5% improvement over FY2004 levels

Waste moved off-site
Eco-efficiency
Target0(FY) 04

08

09

10

11

0.8

Non-consolidated (index)
Non-consolidated target (index)

Fourth Environmental Action Plan targets (Environmental impact)
Non-consolidated: 10% reduction from FY2004 levels
Japan consolidated: 5% reduction from FY2004 levels(Index)

140
120
100
80
60
40
20
0
Good

Japan consolidated (index)
Japan consolidated target (index)

100
78.3
55.0

(FY) 04

08

09

41.3

47.9 48.6

10

11

67

Environmental Data

Soil and Groundwater Pollution Countermeasures
Toyota Industries carries out surveys and purification ofsoil and groundwater contaminated from the past useof trichloroethylene. We regularly report the survey
results to local government authorities and provide
information at local community meetings. As measures
to prevent pollution from substances covered by the
Soil Contamination Countermeasures Law as well asfrom grease and oils, we have drilled observation wells
at all plants to conduct regular checks.

■ Trichloroethylene Readings (FY2011)
Plant

Weighted Average Concentration in
Groundwater (mg/l)

Current Status

Kariya Plant

0.41

Cleanup in progress

Kyowa Plant

0.41

Cleanup in progress

Toyota Industr ies R epor t

2011

Financial Section / Corporate Information
Environmental Accounting and On-Site Verification
Environmental Initiatives■ Economic Benefits of Environmental Conservation Initiatives

Fiscal 2011 Environmental Accounting*(Millions of yen)

Scope of data collection: Toyota Industries Corporation
TIBC Corporation
Data collection period: April 1, 2010 – March 31, 2011
* Environmental accounting data is collected in compliance with the Ministry of theEnvironment’s Environmental Accounting Guidelines 2005 Edition.

Soil and Groundwater Pollution Countermeasures / Environmental Accounting and On-Site Verification■ Environmental Conservation Cost
Category
Business area costs

1,371

485

518

233

2,872

33

3,257

Resource recycling costs

20

562

5

433

Upstream/downstream costs

6

4

–

–

Management costs

2

1,130

39

720

Research and development costs

3

152

Social contribution activity costs

4

13

–

6

–

9

–

5

514

6,113

565

5,020

6,627

3

81

5,585

■ Environmental Conservation Benefits

20,953t increase

VOC

84t increase

Water

68

Comparison with Previous Fiscal Year

CO2

Generation of waste products

1,076t increase
141,727m3 increase

SOX

0.1t increase

NOX

3t decrease

COD (Chemical Oxygen Demand)

3t increase

Toyota Industries Report 2011

Revenue

Returns from sale of recycled waste products

3,405

Energy cost reductions

(616)

Cost
Cost reduction by resource savings (including
Reduction reductions in amount of water use andwastewater treatment costs)

(41)

Total

2,748

Investment Expenses Investment Expenses
246

Environmental Impact

AmountConsolidated Eleven-Year Summary

P70−71

Consolidated Balance Sheets

P72−73

Consolidated Statements of Income

P74

Consolidated Statements of Comprehensive Income

P75

Consolidated Statements of Changes in Net Assets

P76−77FY2010Global environmental
conservation costs

Total

Details(Millions of yen)

FY2011

Pollution prevention costs

Environmental remediation costs

Item■Financial Section

On-Site Verification
In fiscal 2011, Toyota Industries Head Office’s Plant
Engineering & Environment Department primarily
conducted on-site verification of the accuracy andconsistency of environmental data included in the
Toyota Industries Report as follows.
[On-Site Verification Sites]
Anjo Plant: Development and production of electronic
components/devices for vehicles
TIBC Corporation: Production of semiconductor package
substrates[Items to be Verified]
1. Adequacy of the scope of data collection; validity of datacollection and calculation methods; validity of internalverification
2. Trustworthiness and accuracy of collected/calculated data
as well as data reported to the Head Office; accuracy ofdata provided by the Head Office[Results]
1. The verified sites retained original data (evidence) for all
statistics, which were confirmed valid as were the scopeand method of data collection.
2. All discrepancies found during verification have beencorrected after respective causes have been identified.
3. Considerations of improvements will be made for datacollected using complex collection methods that may resultin calculation errors.

Consolidated Statements of Cash Flows

P78■Corporate Information
Board of Directors, Corporate Auditors andManaging Officers
Major Consolidated Subsidiaries

P79
P80−81

Major Production Bases

P82

Investor Information

P83

Note:
For details on the consolidated financial statements, please refer to theseparate publication, which is also posted on the following Website:
www.toyota-industries.com

69

Consolidated Eleven-Year Summary

Toyota Industries Corporation
Years ended March 31
Millions of yen

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

For The YearNet sales¥ 1,479,839¥ 1,377,769¥ 1,584,252¥ 2,000,536¥ 1,878,398¥ 1,505,955¥ 1,241,538¥ 1,164,378¥ 1,069,218¥ 980,163¥ 767,382

Operating income (loss)

68,79822,002(6,621)

96,853

89,95464,04053,12052,63152,477

46,33047,304

Ordinary income

73,911

31,756

14,343

126,488

108,484

80,63570,91258,97051,37547,86544,526

Net income (loss)
Investment in tangible assets

47,205¥38,254¥(26,273)(32,767)

80,46059,46847,07743,357

26,963¥ 104,495¥ 104,205¥ 129,023¥ 130,121¥ 111,321

33,623¥65,651

21,933¥69,60727,311¥—

22,637¥—

Depreciation

62,372

73,23887,21983,74474,44964,423

51,27749,26445,939——Research and development expenses

27,78826,826

33,64636,75034,54831,16630,051

29,562

29,70529,98526,195Per share of common stock (yen):
Net income (loss) per share—basic
Net income per share—diluted¥

151.51¥(84.33)¥(105.16)¥257.50¥189.88¥146.16¥135.09¥108.04

¥

70.19

¥

87.28

¥

75.90

—

—

—

257.43189.66146.02135.03101.97

62.90

78.26

67.77

Total net assets per share

3,300.17

3,390.02

2,987.16

4,483.32

5,612.11

5,044.45

3,504.80

3,199.69

2,522.52

2,809.54

3,036.77

Cash dividends per share

50.00

30.00

40.00

60.00

50.00

38.00

32.00

24.00

22.00

19.00

17.00

Total assets¥ 2,481,452¥ 2,589,246¥ 2,327,432¥ 2,965,585¥ 3,585,857¥ 3,245,341¥ 2,326,824¥ 2,011,995¥ 1,650,391¥ 1,770,401¥ 1,869,642

Total net assets

1,075,939

1,104,929

977,670

1,453,996

1,810,483

1,611,227

1,115,747

1,016,763

738,867

878,812951,298

Common stock

80,46280,46280,46280,46280,46280,46280,46280,462

68,04668,02168,018

Number of shares outstanding (excluding treasury stock) (thousands)

311,564

311,570

311,577

311,589

312,075

319,320

318,237

317,666

292,777

312,796313,260¥ 153,661¥ 203,452

65,768¥ 188,805¥ 177,467¥ 131,784¥ 100,095

92,406¥ 103,183(187,574)(36,855)(114,217)(138,789)(164,446)(205,013)(128,230)(92,667)(95,120)

At Year-End
Financial Section / Corporate Information

Financial Section / Corporate Information

Cash FlowsNet cash provided by operating activities
Net cash used in investing activities

¥

¥

¥

81,078¥78,412(106,710)(155,870)(85,728)(38,230)

120,971(33,992)(19,749)

85,17250,020(56,015)

57,775

1,225

94,472

Cash and cash equivalents at end of year

195,566

317,590

188,011

121,284

108,569

112,596

100,535

77,212

136,929

71,11995,296

Consolidated Eleven-Year Summary

Consolidated Eleven-Year Summary

Net cash provided by (used in) financing activities

Indices
Return on equity (ROE) (%)

4.5

(2.6)

(2.8)

5.1

3.5

3.5

4.1

3.8

2.7

3.0

3.6

Return on assets (ROA) (%)

1.9

(1.1)

(1.2)

2.5

1.7

1.7

2.0

1.8

1.3

1.5

1.8

Operating profit margin (%)

4.6

1.6

(0.4)

4.8

4.8

4.3

4.3

4.5

4.9

4.7

6.2

Equity ratio (%)
EBITDA (millions of yen)
Number of employees

41.4¥ 150,481
40,82540.8¥

90,521
38,903

¥

40.0

47.1

48.8

49.7

48.0

50.5

71,608¥ 222,125¥ 191,007¥ 150,674¥ 128,381¥ 113,676

39,91639,52836,09632,97730,99027,43144.8¥

95,47225,03049.6¥

97,54023,05650.9¥

79,921
21,118

1. Net income (loss) per share is computed based on the average number of shares for each year.
2. ROE and ROA are computed based on the average total net assets and total assets, respectively, for each year.
3. Operating profit margin = Operating income (loss) / Net sales
4. Equity ratio = (Total net assets – Subscription rights to shares – Minority interests) / Total assets
5. EBITDA = Income before income taxes + Interest expenses – Interest and dividends income + Depreciation and amortization

70

Toyota Industries Report 201171

Consolidated Balance Sheets

Toyota Industries Corporation
As of March 31, 2011 and 2010
Millions of yen

ASSETS

Millions of yen

LIABILITIES AND NET ASSETS

2011

2010

¥ 198,654¥ 287,965

152,121

163,708

Current assets:
Cash and deposits
Trade notes and accounts receivable
Lease investment assets

35,146—

Short-term investments

132,430

71,391

Merchandise and finished goods

42,94037,35831,25625,67230,06525,318Deferred tax assets

18,493

17,182Other current assets

32,64647,307

Allowance for doubtful accounts(2,863)(3,103)670,893

672,801

Buildings and structures

159,606

169,991

Machinery, equipment and vehicles

185,988

212,079

Total current assets
Fixed assets:
Property, plant and equipment:
Financial Section / Corporate Information

Tools, furniture and fixtures

23,634

21,840Land

119,697

119,517

8,350

8,547

Construction in progress
Total property, plant and equipment

531,977

Goodwill

68,57372,745

Software

10,767

9,976

Total intangible assets

79,34082,722

1,123,306

1,162,685

—

5,554

Deferred tax assets

9,786

10,429Lease investment assets

71,480—

Other investments and other assets

29,539123,278

(173)

(202)

1,233,940

1,301,744

1,810,559

1,916,444¥ 2,481,452¥ 2,589,246

Consolidated Balance Sheets

Intangible assets:

Investments and other assets:
Investments in securities
Long-term loans receivable

Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets

72

Toyota Industries Report 2011

¥ 144,956
99,946
11,13330,82937,873
14,34918,320737
521
153,275¥ 141,787
46,241
9,575
50,446—13,14915,014316
310
158,100

511,944434,941

205,649
236,60282,813309,256
46,924
12,321

231,401
299,208
108,014351,00945,234
14,507

893,568
1,405,512

1,049,375
1,484,316

80,46280,462

106,179
412,029(50,703)

106,179
378,648(50,689)

Total shareholders’ equity

547,968

514,601

Accumulated other comprehensive income:
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment

488,277
46(8,075)544,068(9)(2,430)480,248
2,132
45,589
1,075,939¥ 2,481,452

541,628
1,720
46,978
1,104,929¥ 2,589,246

Current liabilities:
Trade notes and accounts payable
Short-term loans payable
Commercial paper
Current portion of bonds
Lease obligations
Accounts payable—otherAccrued income taxes
Deferred tax liabilities
Allowance for bonuses to directors and corporate auditors
Other current obligations
Total current liabilities
Long-term liabilities:
Bonds payable
Long-term loans payable
Lease obligations
Deferred tax liabilities
Allowance for retirement benefits
Other long-term liabilities
Total long-term liabilities
Total liabilities
Shareholders’ equity:
Capital stock
Authorized — 1,100,000,000 shares
Issued— 325,840,640 shares as of March 31, 2011
325,840,640 shares as of March 31, 2010
Capital surplus
Retained earnings
Treasury stock
14,275,721 shares as of March 31, 2011
14,269,943 shares as of March 31, 2010

Total accumulated other comprehensive income
Subscription rights to shares
Minority interests
Total net assets
Total liabilities and net assets

Consolidated Balance Sheets

497,2782010

Financial Section / Corporate Information

Work in process
Raw materials and supplies

2011

73

Consolidated Statements of Income

Consolidated Statements of Comprehensive Income

Toyota Industries Corporation
For the years ended March 31, 2011 and 2010

Toyota Industries Corporation
For the years ended March 31, 2011 and 2010
Millions of yen

Millions of yen

2011

2010

Net sales¥ 1,479,839¥ 1,377,769

Income before minority interests

Cost of sales

1,250,313

1,194,399

Other comprehensive income

229,526

183,370

Gross profit

2011

Selling, general and administrative expenses:

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

Sales commissions

8,913

6,814

Foreign currency translation adjustment

Salaries and allowances

62,96964,716

Share of other comprehensive income of associates accounted for using equity method

Retirement benefit expenses

2,020

1,953

Comprehensive income

Depreciation

6,332

8,151

Profit attributable to:

Research and development expenses

21,727

19,482

Owners of the parent

Others

58,76560,248

Minority interests

68,79822,002

Interest income

9,172

10,804

Dividends income

14,975

15,297

Operating income¥ 49,058

2010

¥

—

(55,834)—

55—(6,375)

—

(300)

—

(13,396)—(14,174)

—

777

—

Non-operating income:

488

135

—

744

7,407

7,413

Other non-operating income(Reference)

Non-operating expenses:
Interest expenses(15,773)(17,847)

Loss on disposal of fixed assets(1,281)(1,257)(473)—

Equity in net losses of affiliated companies
Other non-operating expenses
Ordinary income(5,535)31,756

Consolidated Statements of Income

Losses on the Great East Japan Earthquake(4,631)—

Losses on business restructuring of the Materials Handling Equipment Segment—(43,099)

69,279(11,343)

Income taxes — current

25,456

13,320

Income taxes — deferred(5,234)(438)

Income (loss) before income taxes and minority interests

Income before minority interests
Income on minority interests in consolidated subsidiaries¥

49,058

—

1,852

2,048

47,205¥(26,273)(1) Comprehensive income as of March 31, 2010 is as follows:
Millions of yen

2010
Comprehensive income attributable to:
Owners of the parent
Minority interests
Total¥ 132,888
1,848¥ 134,737

Consolidated Statements of Comprehensive Income(9,402)73,911

Extraordinary losses:

Net income (loss)

Financial Section / Corporate Information

Financial Section / Corporate Information

Gain on sales of marketable securities
Equity in net earnings of affiliated companies(2) Other comprehensive income as of March 31, 2010 is as follows:
Millions of yen

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Share of other comprehensive income of associates accounted for using equity method
Total

2010
¥ 151,677
(33)
7,018
300
¥ 158,962

Yen

Net income (loss) per share— basic
Net income (loss) per share— diluted
Net assets per share
Cash dividends per share74

Toyota Industries Report 2011

¥ 151.51¥(84.33)——3,300.17

3,390.02

50.00

30.00

75

Consolidated Statements of Changes in Net Assets

Toyota Industries Corporation
For the years ended March 31, 2011 and 2010
Millions of yen

2011

Toyota Industries Report 2011

80,46280,462¥80,46280,462

106,179

106,180(0)(0)
106,179(0)(0)
106,179

378,648412,294(14,020)—
196
47,20533,381
412,029(6,231)(1,138)(1)(26,273)(33,646)
378,648(50,689)(50,672)

(15)
1
(13)
(50,703)

(18)
1
(16)
(50,689)

514,601

548,264(14,020)—
196
47,205(15)
033,367547,968(6,231)(1,138)(1)(26,273)(18)
0(33,663)514,601

544,068

392,489(55,790)(55,790)488,277

151,578
151,578
544,068

2011

Deferred gains or losses on hedges
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Foreign currency translation adjustment
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Total accumulated other comprehensive income
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Subscription rights to shares
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Minority interests
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Total net assets
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Increase (decrease) due to increase in consolidated subsidiaries
Increase (decrease) due to decrease in consolidated subsidiaries
Net income (loss)
Repurchase of treasury stock
Disposal of treasury stock
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period

¥

2010

(9)

¥

24

55
55
46

(33)
(33)
(9)

(2,430)(10,048)(5,645)(5,645)(8,075)

7,618
7,618
(2,430)541,628

382,466(61,380)(61,380)
480,248

159,162
159,162541,628

1,720

1,224

411
411
2,132

496
496
1,720

46,97845,715(1,389)(1,389)45,5891,263
1,263
46,978

1,104,929

977,670(14,020)—
196
47,205(15)
0(62,357)(28,990)¥ 1,075,939(6,231)(1,138)(1)(26,273)(18)
0160,922
127,259¥ 1,104,929

Consolidated Statements of Changes in Net Assets

Consolidated Statements of Changes in Net Assets

76

¥

2010

Financial Section / Corporate Information

Financial Section / Corporate Information

Shareholders’ equity
Capital stock
Balance at the end of previous period
Balance at the end of current period
Capital surplus
Balance at the end of previous period
Changes of items during the period
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Retained earnings
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Increase (decrease) due to increase in consolidated subsidiaries
Increase (decrease) due to decrease in consolidated subsidiaries
Net income (loss)
Total changes of items during the period
Balance at the end of current period
Treasury stock
Balance at the end of previous period
Changes of items during the period
Repurchase of treasury stock
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Total shareholders’ equity
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Increase (decrease) due to increase in consolidated subsidiaries
Increase (decrease) due to decrease in consolidated subsidiaries
Net income (loss)
Repurchase of treasury stock
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period

Millions of yen

77Consolidated Statements of Cash Flows

Board of Directors,
Corporate Auditors and Managing Officers

Toyota Industries Corporation
For the years ended March 31, 2011 and 2010

(As of June 16, 2011)

Board of Directors
Millions of yen

Toyota Industries Report 2011

¥ 69,279
89,576—(195)(24,148)
15,773473
11,650(16,953)
3,440
19,228168,125
24,173(15,882)(22,755)
153,661¥ (11,343)
110,119
36,902
84(26,101)
17,847(744)(777)
17,334
36,164
7,372
186,859
26,145(17,976)
8,424
203,452(48,085)
7,645(56,000)
2,963
(25)
41
(30)
730
(89,351)(5,461)(187,574)(48,312)15,729(3,927)
197
(781)
—
(293)
2,003
—
(1,470)(36,855)(6,759)
240
(826)
4,002
(49,180)(15)(14,020)(528)
143(18,784)(85,728)(2,382)(122,024)
317,590¥ 195,566(37,614)
27,820(1,915)50,000(33,286)(18)(6,231)(625)—(36,359)(38,230)
1,211
129,578
188,011¥ 317,590

ChairmanPresident

Executive Vice President

Akira Imura

Tetsuro Toyoda

Kazunori Yoshida

Executive Vice President

Executive Vice President

Executive Vice President

Yasuharu Toyoda

Kimpei Mitsuya

Tetsuo Agata

Senior Managing Directors

Masafumi Kato
Kosaku Yamada
Toshiyuki Sekimori
Chiaki Yamaguchi
Kazue Sasaki

Directors

Hirotaka Morishita
Shinya Furukawa
Akira Onishi
Masaharu Suzuki

Yorihito Ikenaga
Fujio Cho

Board of Directors, Corporate Auditors and Managing Officers

Consolidated Statements of Cash Flows

78

2010

Financial Section / Corporate Information

Financial Section / Corporate Information

Cash flows from operating activities:
Income (loss) before income taxes and minority interests
Depreciation and amortization
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Interest and dividends income
Interest expenses
Equity in net (earnings) losses of affiliated companies(Increase) decrease in receivables(Increase) decrease in inventories
Increase (decrease) in payables
Others, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes (paid) received
Net cash provided by operating activities
Cash flows from investing activities:
Payments for purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Payments for purchases of investment securities
Proceeds from sales of investment securities
Payments for acquisition of subsidiaries’ stock resulting in change in scope of consolidation
Proceeds from sales of subsidiaries’ stock resulting in change in scope of consolidation
Payments for loans madeProceeds from collections of loans
Net decrease (increase) in time deposits
Others, net
Net cash used in investing activities
Cash flows from financing activities:
Increase in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuances of bonds
Repayments of bonds
Payments for repurchase of treasury stocks
Cash dividends paid
Cash dividends paid to minority shareholders
Proceeds from payment by minority shareholders
Others, net
Net cash used in financing activities
Translation adjustments of cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

2011

Corporate Auditors
Full-Time Corporate Auditors

Shigetaka Yoshida
Kakuo Ishikawa

Corporate Auditors

Katsuaki Watanabe
Toshio Mita
Hans-Juergen MarxManaging Officers
Senior Managing Officers

Takaki Ogawa
Takashi Okubo
Norio Sasaki
Toshifumi Ogawa
Toshifumi Onishi
Kohei Nozaki

Managing Officers

Taku Yamamoto
Yukihisa Tsuchimoto
Kan Otsuka
Hiroaki Asai
Takashi Ito
Toshiya Yamagishi
James J. Malvaso
Junichi Harada

Mikihiko Okamoto
Suguru Nakano
Tamotsu Sawada
Hirooki Fujiwara
Yasuhiro Murata
Yojiro Mizuno
Masahiro Kawaguchi
Susumu Toyoda

79Major Consolidated Subsidiaries(As of March 31, 2011)■ Major Consolidated Subsidiaries (in Japan)
Company Name

Location

Ownership
Ratio* (%)

Business Activities

Country

Company Name

Location

Ownership
Ratio* (%)

Business Activities●Consolidated Subsidiaries
Aichi Corporation

Ageo-shi, Saitama

Production of aerial work platforms

51.0

Wanbishi Archives Co., Ltd.

Minato-ku, Tokyo

Total information management, insurance services

100.0

TIBC Corporation

Obu-shi, Aichi

Production of semiconductor package substrates

60.0

HANDA Casting Company

Handa-shi, Aichi

Production of foundry parts

100.0

Asahi Security Co., Ltd.

Minato-ku, Tokyo

Secure transport of cash and valuables, management of proceeds, equipment security
services

100.0

TOYOTA L&F Tokyo Co., Ltd.

Shinagawa-ku, Tokyo

Sales and servicing of materials handling equipment

100.0

Altex Co., Ltd.

Hamamatsu-shi, Shizuoka

Production of compressor parts

Sun River Co., Ltd.

Suita-shi, Osaka

Sports facilities, real estate lease, restaurant management

100.0

IZUMI MACHINE MFG. CO., LTD.

Obu-shi, Aichi

Production of specialized machine tools, friction welding machines, automotive parts

100.0

Tokyu Co., Ltd.

Niwa-gun, Aichi

Production of compressor parts and industrial machinery

100.0

Advanced Logistics Solutions Co., Ltd. Obu-shi, Aichi

Logistics planning, operation of distribution centers

100.0

Toyoda High System, Incorporated

Kariya-shi, Aichi

Planning, development, formulation and operation of information infrastructure and systems

100.0

Nishina Industrial Co., Ltd.

Nagano-shi, Nagano

Production of materials handling equipment and construction machinery parts

97.5

KTL Co., Ltd.

Koto-ku, TokyoManagement and operation of distribution centers

50.5

Tokaiseiki Co., Ltd.

Iwata-shi, Shizuoka

Production of compressor and engine parts, etc.

100.0

Taikoh Transportation Co., Ltd.

Kariya-shi, Aichi

Trucking, warehousing, distribution consulting

51.8

SKM CORPORATION

Kariya-shi, Aichi

Total management of buildings, security management, civil engineering/construction design
work and real estate management

100.0

Unica Co., Ltd.

Kiyosu-shi, Aichi

Production of in-house transporters

100.0

South America
BrazilSão Paulo

Sales and servicing of materials handling equipment

100.0

Toyota Máquinas Têxteis Brasil Ltda

São Paulo

Sales and servicing of textile machinery

100.0

Europe100.0

MjölbyHolding company for materials handling equipment business in Europe

100.0

MjölbyEuropean headquarters for materials handling equipment business

100.0

BT Products AB

MjölbyProduction of materials handling equipment

100.0

Toyota Material Handling Sweden AB

BrommaSales and servicing of materials handling equipment

100.0

Toyota Industries Finance International AB

MjölbyFunding, loan, other financial services

100.0

NorwayToyota Material Handling Norway AS

Trondheim

Sales and servicing of materials handling equipment

100.0

Finland

Toyota Material Handling Finland OY

VantaaSales and servicing of materials handling equipment

100.0

LatviaToyota Material Handling Baltic SIA.

Riga

Sales and servicing of materials handling equipment

100.0

PolandToyota Material Handling Polska Sp. z o.o.

Pruszków

Sales and servicing of materials handling equipment

100.0

Denmark

Toyota Material Handling Danmark A/SSlangerup

Sales and servicing of materials handling equipment

100.0

U.K.

Toyota Material Handling UK Limited

Slough, Berkshire

Sales and servicing of materials handling equipment

100.0

Toyota Material Handling Deutschland GmbH

Langenhagen

Sales and servicing of materials handling equipment

100.0

TD Deutsche Klimakompressor GmbH

Bernsdorf

Production of compressors

65.0

Toyota Industrial Equipment, S.A.

AncenisProduction of materials handling equipment

100.0

Toyota Industrial Equipment Europe, S.A.R.L.

AncenisSales of materials handling equipment

100.0

BT France S.a.r.l.

Marne La ValléeSales and servicing of materials handling equipment

100.0

Toyota Material Handling Europe Brussels
NV/SA

Brussels

Sales and marketing of materials handling equipment

100.0

Toyota Material Handling Belgium NV/SA

Wilrijk

Sales and servicing of materials handling equipment

100.0

Netherlands Toyota Material Handling Nederland B.V.

Ede

Sales and servicing of materials handling equipment

100.0

Spain

Toyota Material Handling España, S.A.

Barberá del VallésSales and servicing of materials handling equipment

100.0

Austria

Toyota Material Handling Austria GmbH

Wiener Neudorf

Sales and servicing of materials handling equipment

100.0

SwedenGermany

FranceNiwa-gun, Aichi

Production of compressor parts

Nagao Kogyo Co., Ltd.

Nagoya-shi, Aichi

Production of compressor, materials handling equipment and weaving machinery parts

100.0

TOYOTA L&F Shizuoka Co., Ltd.

Shizuoka-shi, Shizuoka Sales and servicing of materials handling equipment

100.0

TOYOTA L&F Hyogo Co., Ltd.

Kobe-shi, Hyogo

Sales and servicing of materials handling equipment

100.0

TOYOTA L&F Fukui Co., Ltd.

Fukui-shi, Fukui

Sales and servicing of materials handling equipment

100.0

Hara Corporation

Ibi-gun, Gifu

Production of textile machinery and parts

100.0

Sun Valley Inc.

Kariya-shi, Aichi

Sales of goods, travel agency, organizing and running of events

100.0

Miduho Industry Co., Ltd.

Nagoya-shi, Aichi

Production of automotive, compressor and materials handling equipment parts

100.0

Czech
Republic

Toyota Material Handling CZ s.r.o.

Rudna

Sales and servicing of materials handling equipment

100.0

Sun Staff, Inc.

Kariya-shi, Aichi

Personnel placement, contract office staffing

100.0

Slovakia

Toyota Material Handling Slovensko s.r.o.

Bratislava

Sales and servicing of materials handling equipment

100.0

ALT Logistics Co., Ltd.

Obu-shi, Aichi

Distribution service contracting; planning, management and operation of distribution centers

60.0

Hungary

Toyota Material Handling Hungary Kft.

Budapest

Sales and servicing of materials handling equipment

100.0

Shine’s Co., Ltd.

Kariya-shi, Aichi

Management and operation of employee clubs

100.0

Toyota Material Handling Schweiz AG

ZürichSales and servicing of materials handling equipment

50.0

Toyota Textile Machinery Europe, AG

Uster

Sales and servicing of textile machinery

100.0

Location

Italy
Greece■ Major Consolidated Subsidiaries and Affiliates (outside Japan)
Company Name

Switzerland

100.0*Including indirect investment

Country

Belgium

Business Activities

Ownership
Ratio* (%)

CanadaProduction of materials handling equipment

100.0

Bologna

Sales and servicing of materials handling equipment

100.0

Toyota Material Handling Greece SA

Markopoulo, Attica

Sales and servicing of materials handling equipment

100.0

Shanghai

Sales of materials handling equipment

100.0

Kunshan, Jiangsu

Production of materials handling equipment and parts for automobiles,
etc.

70.0

Toyota Material Handling (Shanghai) Co., Ltd.
Toyota Industry (Kunshan) Co., Ltd.

North America

U.S.A.

Bologna

Asia and Oceania●Consolidated Subsidiaries
Toyota Industries North America, Inc.

CESAB Carrelli Elevatori S.p.A.
Toyota Material Handling Italia S.r.l.

Columbus, Indiana

Holding company in the U.S.A.

100.0

China

TD Automotive Compressor Kunshan Co., Ltd. Kunshan, Jiangsu

Production of compressors

59.8

Kunshan, Jiangsu

Production of automotive parts

60.0

ShanghaiInstallation and servicing of textile machinery

100.0

Shanghai

Import/export, Chinese domestic distribution, operation of distribution
centers

100.0
100.0

Toyota Material Handling North America, Inc.

Columbus, Indiana

North American headquarters for materials handling equipment business

100.0

Toyota Industry Automotive Parts (Kunshan)Co., Ltd.

Toyota Industrial Equipment Mfg., Inc.

Columbus, Indiana

Production of materials handling equipment

100.0

Toyota Textile Machinery (Shanghai) Co., Ltd.

The Raymond Corporation

Greene, New York

Production of materials handling equipment

100.0

Raymond-Muscatine Inc.

Muscatine, Iowa

Production of materials handling equipment

100.0

Toyota Industries Trading & Logistics (China)
Co., Ltd.

North Vernon Industry Corp.

North Vernon, Indiana Production of materials handling equipment parts

100.0

Indiana Hydraulic Equipment, Corp.

Franklin, Indiana

Production of materials handling equipment parts

100.0

Toyota Material Handling, U.S.A., Inc.

Irvine, California

Sales of materials handling equipment

100.0

Michigan Automotive Compressor, Inc.

Parma, Michigan

Production of compressors

60.0

TD Automotive Compressor Georgia, LLC

Pendergrass, Georgia Production of compressors

65.0

Toyoda Textile Machinery, Inc.

Charlotte, North
Carolina

Sales and servicing of textile machinery

100.0

G. N. Johnston Equipment Co., Ltd.

Mississauga, Ontario

Sales and servicing of materials handling equipment

100.0

Toyota Industries Report 2011

Major Consolidated Subsidiaries

Major Consolidated Subsidiaries

Planning and operation of benefit programs; administrative processing services for payroll
accounting, etc.

100.0

Financial Section / Corporate Information

Financial Section / Corporate Information

Toyota Industries Europe AB
Toyota Material Handling Europe AB

Iwama Loom Works, Ltd.

Toyota Industries Well Support CorpoKariya-shi, Aichi
ration80

Toyota Material Handling Mercosur Comerciode Equipamentos LTDA

Toyota Material Handling India Pvt. Ltd.

Delhi

Sales and servicing of materials handling equipment

Kirloskar Toyoda Textile Machinery Pvt. Ltd.

Bangalore

Production of textile machinery and parts for automobiles

95.1

Indonesia

P.T. TD Automotive Compressor Indonesia

Bekasi

Production of compressors

71.4

Australia

Toyota Material Handling Australia Pty Limited

New South Wales

Sales and servicing of materials handling equipment

India

100.0
*Including indirect investment●Affiliates Accounted for by the Equity Method
EuropePolandToyota Motor Industries Poland Sp. z o.o.

Jelcz-Laskowice

Production of diesel engines

40.0

81

Major Production Bases

Investor Information(As of March 31, 2011)■ Major Plants (Parent Company)
Plant

Main Products

Start of Operations(As of March 31, 2011)

Corporate Head Office

Stock Exchange Listings

TOYOTA INDUSTRIES CORPORATIONTokyo, Osaka and Nagoya (Ticker Code: 6201)

Kariya Plant

Textile machinery, compressors

1927

2-1, Toyoda-cho, Kariya-shi, Aichi, 448-8671, Japan

Obu Plant

Parts for compressors

1944

Telephone: +81-(0)566-22-2511

Number of Shareholders

Kyowa Plant

Electronic equipment, automotive press dies, production facilities, engine parts

1953

Facsimile: +81-(0)566-27-5650

21,447

Nagakusa Plant

Vehicles1967

Takahama Plant

Materials handling equipment, materials handling systems

1970

Hekinan Plant

Diesel engines, gasoline engines

1982

Date of Establishment

Independent Accountant

Higashichita Plant

Foundry parts, diesel engines

2000

November 18, 1926

PricewaterhouseCoopers Aarata

Higashiura Plant

Parts for compressors

2002

Anjo Plant

Electronic equipment

2007

Sumitomo Fudosan Shiodome Hamarikyu Bldg.

Common Stock

8-21-1 Ginza, Chuo-ku, Tokyo, 104-0061, Japan

No par value
Company Name
1

Toyota Industrial Equipment Mfg., Inc.

Transfer Agent
Special Account Management Institution

Authorized: 1,100,000,000 shares■ Major Plants (Outside Japan)
Location
5555 Inwood Drive, Columbus, Indiana 47201 U.S.A.

Year of Foundation

Issued:325,840,640 shares

Mitsubishi UFJ Trust and Banking Corporation

1988

2

Michigan Automotive Compressor, Inc.

2400 North Dearing Road, Parma, Michigan 49269 U.S.A.

1989

Capital Stock3

TD Automotive Compressor Georgia, LLC

1000 Valentine Industrial Parkway, Pendergrass, Georgia 30567 U.S.A.

2004

80,462 million yen

4

Toyota Industrial Equipment, S.A.

ZAC de l’Aéropôle-B.P.77-F-44152 Ancenis Cedex, France

1995

5

TD Deutsche Klimakompressor GmbH

Weißiger Straße 6, 02994 Bernsdorf, Germany

1998

6

Toyota Motor Industries Poland Sp. z o.o.

ul. Japonska 6, Leg, 55-220, Jelcz-Laskowice, Poland

2002

7

Kirloskar Toyoda Textile Machinery Pvt. Ltd.

Plot No.10-13, Phase II, Jigani Industrial Area, Anekal Taluk,
Bangalore District-562 106, India

1995

8

TD Automotive Compressor Kunshan Co., Ltd.

412 San Xiang Road, Kunshan E.&T. Development Zone, Jiangsu, P.R. China

2005

9

Toyota Industry (Kunshan) Co., Ltd.

18 Zhonghuayuan Road, Kunshan E.&T. Development Zone, Jiangsu, P.R.China

1994
2004

11 BT Products AB

1946

Svarvargatan 8, SE-595 81 Mjölby, Sweden

Major Shareholders (Top 10)
Number of Shares Held(Thousands)

Percentage of Total
Shares in Issue (%)

Toyota Motor Corporation

76,60023.51

DENSO Corporation

29,647

9.10

Towa Real Estate Co., Ltd.

15,697

4.82

9,873

3.03

1942

8 South Canal Street #20, Greene, New York 13778 U.S.A.

1922

Third Avenue Funds

8,313

2.55

Toyota Tsusho Corporation

8,289

2.54

Japan Trustee Services Bank, Ltd. (Trust Account)

7,346

2.25

Nippon Life Insurance Company

6,735

2.07

Aisin Seiki Co., Ltd.

6,578

2.02

Mitsui Sumitomo Insurance Company, Limited

5,345

1.64

174,428

53.53

Total

Investor Information

Via Persicetana Vecchia 10, 40132 Bologna, Italy

13 The Raymond Corporation

Major Production Bases

12 CESAB Carrelli Elevatori S.p.A.

The Master Trust Bank of Japan, Ltd. (Trust Account)

Financial Section / Corporate Information

Financial Section / Corporate Information

10 Toyota Industry Automotive Parts (Kunshan) Co., Ltd. 408 San Xiang Road, Kunshan E.&T. Development Zone, Jiangsu, P.R. China

1-4-5, Marunouchi, Chiyoda-ku, Tokyo, 100-8212, Japan

Notes: 1. Toyota Industries Corporation also holds 14,275 thousand shares of treasury stock but is excluded fromthe above list.
2. Shares held for the purpose of trust services of respective banks are as follows:
The Master Trust Bank of Japan, Ltd. (Trust Account)9,873 (Thousands)
Japan Trustee Services Bank, Ltd. (Trust Account)
7,346 (Thousands)

Distribution of Shares
0.4%
4.4%
8.3%

Japanese corporate entities
Foreign corporate entities and others

20.3%

46.1%

Japanese financial institutions
Individuals, etc.
Treasury stock

20.5%

82

Toyota Industries Report 2011

Japanese brokerages

83Toyota Industries Report 2011

Toyota Industries Report
Year ended March 31, 2011

2-1, Toyoda-cho, Kariya-shi, Aichi 448-8671, Japan
Telephone: +81-(0)566-22-2511 Facsimile: +81-(0)566-27-5650
www.toyota-industries.com

This report is printed with ink derived from vegetables using a waterless printing process.
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