Toyota Industries Report 2009
Year ended March 31, 2009

Contents

Financial Highlights

1

Message from the Chairman and President

2-5

Summary of Business Activities

6-17

Corporate Social Responsibility

32-37

Corporate Governance

32-33

6-7

Responsibility to Our Customers

34

Materials Handling Equipment

8-11

Responsibility to Our Business Partners

35

Automobile

12-15

Responsibility to Our Associates

36

Vehicle12

Responsibility to Our Local Communities

37

Engine13

Car Air-Conditioning Compressor

14

Car Electronics

15

Corporate Data

38-39

Logistics

16

Board of Directors, Corporate Auditors

Textile Machinery

17

Environmental Initiatives

18-31

Financial Section

41-71

Special Feature (Environmental Design for Lift Trucks)

18-20

Financial Section

41

Global Environmental Commitment

21

Management’s Discussion and Analysis ofEnvironmental Management

22

Business Activities and Their Environmental Impact

23

Consolidated Balance Sheets

48-49

Targets and Results of the Fourth Environmental Action Plan

24

Consolidated Statements of Income

50

Curbing Global Warming

25-27

Consolidated Statements of Changes in Net Assets

51

Resource Utilization

28

Consolidated Statements of Cash Flows

52

Reduction in Environmental Risk

29

Notes to Consolidated Financial Statements

53-69

Environmental Communication

30

Report of Independent Auditors

70

Environmental Accounting/On-Site Verification

31

Investor Information

71

Business Performancefor the Year Ended March 31, 2009

and Managing Officers

Financial Condition and Results of Operations

40

42-47

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 and estimates 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 resultof new information, future events or otherwise. Therefore, it is 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) pricecompetition, (6) reliance on suppliers of raw materials and components, (7) environmental regulations, (8) success or failure of strategic alliances with other companies, (9) exchange rate fluctuations,(10) share price fluctuations, (11) effects of disasters, power blackouts and other incidents, (12) latent risks associated with international activities and (13) retirement benefit liabilities.

Toyota Industries Report 2009

Financial Highlights
Toyota Industries Corporation
Years ended March 31
Millions of yen% change
2009 vs 2008

2005

2006

2007

2008

2009

1,241,538

1,505,955

1,878,398

2,000,536

1,584,252

Operating income (loss)

53,12064,04089,95496,853(6,621)−

Ordinary income

70,91280,635

108,484

126,488

14,343(88.7)Net income (loss)

43,35747,07759,46880,460(32,767)−

Research and development expenses

30,051

31,16634,54836,75033,646(8.4)

Cash dividends per share (yen)

32.00

38.00

50.00

60.00

40.00

(33.3)

Total assets

2,326,824

3,245,341

3,585,857

2,965,585

2,327,432(21.5)%

Total net assets

1,115,747

1,611,227

1,810,483

1,453,996

977,670(32.8)

Number of employees

30,99032,97736,09639,52839,916

1.0

Net Sales

Operating Income (Loss)

For the YearNet sales(20.8)%At Year-End

Net Income (Loss)(¥ Billion)(¥ Billion)(¥ Billion)

2,500

100

100

80

80

2,000

60

60
1,500

40
40
20

1,000
20
500

0

0
(FY)

0
-20
-40

-20

05

06

07

08

09

Total Assets

(FY)

05

06

07

08

09

(FY)

05

06

07

08

09

Cash Dividends per ShareTotal Net Assets(¥ Billion)(¥ Billion)

(¥)

4,000

2,000

60

3,000

1,500

50
40
2,000

1,000

1,000

500

30
20
10

0
(FY)

0

0

05

06

07

08

09

(FY)

05

06

07

08

09

(FY)

05

06

07

08

09

Toyota Industries Report 20091

Tadashi Ishikawa

Tetsuro Toyoda

ChairmanPresident

Message from the Chairman and President
Business Results for Fiscal 2009 andInitiatives in Fiscal 2010

achieve a recovery in earnings. Nevertheless, these measures

The world economy declined abruptly in the year ended

at which markets have contracted, and Toyota Industries

March 31, 2009 (fiscal 2009), as the worsening of the real

inevitably recorded steep declines in sales and profits, as

economy spread beyond Europe and the United States toillustrated by a ¥416.3 billion decline in consolidated net sales

emerging countries, reflecting the severe impact of the global

year-on-year to ¥1,584.2 billion. Meanwhile, we posted anfinancial crisis.

operating loss of ¥6.6 billion, a decrease of ¥103.4 billion,

To respond to this changing external environment, sincespring 2008 the Toyota Industries Group has adopted outof-the-box thinking with a set of new values based on the2were unable to compensate for the unprecedented speed

whereas ordinary income declined ¥112.1 billion to ¥14.3
billion.
Although we ultimately posted disappointing businessrecognition that “times have changed” in order to enhance theresults, Toyota Industries’ management keenly felt the pain

Group’s overall capabilities. In response to a sharp decline inof this downturn and quickly seized the initiative to achieve a

net sales from autumn 2008, the entire Toyota Industries Group

recovery in our earnings. We believe this decisive response

has made collective efforts since December 2008 to quickly

has yielded a number of positive results, such as prompting

and systematically implement comprehensive measures toa change in the mindset of every employee and stimulating

Toyota Industries Report 2009

concerted Group-wide efforts to vigorously tackle the various

Future Business Strategies

challenges we face.

In the Materials Handling Equipment Segment, we will

Looking ahead to the fiscal year ending March 31,

increase our competitiveness by standardizing internally2010 (fiscal 2010), we expect the operating environment

developed key components and enhancing the productsurrounding the Toyota Industries Group to deteriorate further

appeal of our electric lift trucks, for which we foresee

amid concerns about a protracted global slowdown as wellincreased demand in line with the rising importance ofas foreign exchange and stock market trends. The current

protecting the global environment. We will further bolster our

economic turmoil is said to be a “once-in-a-century” crisis.

lineup of lift trucks in December 2009 with the planned launch

Therefore, we must be prepared for this recession to beof a new hybrid lift truck that combines a diesel engine,

prolonged. Even when the economy eventually rebounds,

electric motor and battery. Realized through the collective

society and industry could conceivably undergo significant

competencies of the Toyota Group, this innovative new

structural changes in the aftermath of the turmoil. As theseproduct is just one way in which we will continue to lead theanticipated external changes unfold, the Toyota Industries

industry in environmental technologies.

Group must go back to the basics and vigorously promote its

On the sales front, we will focus on leveraging theown structural reforms and adopt new ways of thinking as itstrengths of the sales structure created through thefortifies its management foundation based on new values andintegration of the TOYOTA- and BT-brand sales channels

concepts.

in Europe and other regions to expand our share in those

In working to accomplish these goals, our most urgent

countries, especially in Europe, the world’s largest market. We

tasks will be to reform our business and cost structures

will also fortify marketing functions to ensure timely response

and raise our profitability. We will streamline our corporate

to rising demand in emerging countries, particularly BRICs

structure and lower our break-even point to build a solid(Brazil, Russia, India and China) markets.

foundation capable of securing profits even without sales

In the Automobile Segment, we are actively developing

growth. Specific measures will include bolstering andand manufacturing products which meet growing demandenhancing profit-improvement activities launched in late 2008

for lightweight, compact, fuel-efficient, low-cost vehicles

and making exhaustive efforts to lower fixed costs.

as well as in response to the expanding market for hybrid

Along with these steps, we will formulate a range ofvehicles. In the Vehicle Business, we plan to reinforce ourmeasures for expanding sales, which include introducing new

outstanding capabilities in QCD (quality, cost and delivery) for

products and promoting sales expansion activities.

manufacturing compact vehicles to pursue the development

Setting our sights on medium- to long-term growth, weof reasonably priced, high-quality products. Another task

will accelerate our preparations for a future leap forward

will be to accelerate development and aim for earlyby planning and developing products from the perspective

commercialization of lightweight vehicle technologies, such asof customers. We will also promote the development ofplastic glazing, that are essential for enhancing fuel efficiency.

advanced technologies in order to provide high value-

In the Engine Business, we will enhance the productadded products that anticipate customer needs. At thecompetitiveness of our clean diesel engines, which are one

same time, we will strengthen and expand our sales andmeans for realizing a low-carbon society, while expanding

service networks as well as our value chain. With regards

sales of gasoline engines and industrial-use engines.

to technological development in particular, we will strive to

In the Car Air-Conditioning Compressor Business, we will

accurately identify changes in the market and operating

solidify our overwhelmingly competitive advantage in fuel-environment and swiftly examine technological themes that

efficient air-conditioning compressors for internal-combustion

will form the core of our future growth, backed by the total

engine vehicles. We also plan to offer a series of electricallycommitment of all members of the Toyota Industries Groupdriven air-conditioning compressors for the Toyota Prius andthrough the cooperation of each division.

other hybrid vehicles, which are expected to enjoy a large
rise in demand. We anticipate these measures will enable

Toyota Industries Report 20093

Tetsuro Toyoda
President

us to solidify our position as a top manufacturer of car air-conservation and sustainable development globally. As

conditioning compressors.

such, we will emphasize these elements in our productIn the Car Electronics Business, converters for auxiliary

development, with plans to further accelerate theequipment developed and manufactured by Toyota Industries

electrification of industrial vehicles and automobiles. Toyota

have been fitted in numerous hybrid vehicles, most notably

Industries stands firmly positioned to respond to this trend

the Toyota Prius. The latest model launched in May 2009

backed by its deep reservoir of electromotive technologies

also integrates a newly developed direct cooling system forand know-how cultivated in the development of electric lift

the power control unit in addition to a converter for auxiliary

trucks as well as its comprehensive automotive technologies

equipment. Aided by such positive factors as tax breaks forspanning vehicles, engines and components. We intend to

eco-car purchases and the introduction of scrap incentives,

integrate these element technologies to realize synergies

we believe the field of hybrid vehicles, plug-in hybrid vehicles

for creating products that are ecological and benefit society

and electric vehicles to be one of the most promisingthroughout the world.

markets. Looking ahead, we aim to build our Car Electronics
Business into a core business by broadening our productEnvironmental Conservation

domains in this field.

Recognizing the growing importance of environmental

At Toyota Industries, we define 3Es to be energy,

4protection, Toyota Industries actively undertakes

environmental protection and ecological thinking that areenvironmental conservation activities in its role as a company

incorporated into our products and operating activities.

involved in manufacturing. These activities are based on

We believe these 3Es are key to promoting environmental

its corporate principle of “Toyota Industries believes that

Toyota Industries Report 2009

economic growth and conservation of the natural environment
are compatible. It strives to offer products and services that

We will continue to broaden and enhance our social
contribution activities throughout the world.

are clean, safe and of high quality.”
As specific initiatives, we have designated curbing global

Human Resources Development

warming and resource utilization as priority issues in ourWithin today’s rapidly changing business environment, we

Fourth Environmental Action Plan. In addressing these issues,

believe that human resources development will play an

we are working to minimize environmental loads in all phases

unprecedented and important role in ensuring the sustainableof our operations, from the product design and procurement

growth of the Toyota Industries Group. As part of activities

stages through to production processes, logistics, productto commemorate the 80th anniversary of our founding, we

use and recycling.

established the Hazu Academy, a global learning center,

The Toyota Industries Group strives for balancein Aichi Prefecture. The academy functions as a venue forbetween protecting the earth’s environment and economic

nurturing independent-minded personnel who take thedevelopment. In working toward this goal, management

initiative to think, learn and act, and thereby bear the torch

and all employees act together to realize “environmental

to ensure the growth of the Toyota Industries Group in the

management.”

future. Targeting management and employees from insideand outside of Japan, the academy provides training forSocial Contributions

promoting the penetration of Toyota Industries’ management

As a responsible corporate citizen, Toyota Industries

philosophy, formulating management strategies from a global

carries out wide-ranging social contribution activities

perspective and enhancing problem-solving capabilities.

focused on the local communities in which we do business.
Responding to requests from regional governments andvarious organizations, Toyota Industries is proactively

Looking to the future, we remain committed to further

involved in a host of activities that include providing humanraising corporate value while aiming for sustainable growth

resources for welfare facilities and traffic safety activities. We

in harmony with society. In closing, we truly appreciate thealso make donations for welfare-related events as well as

loyal support of all our stakeholders, including shareholders,

youth development, community, sports and environmental

customers, business partners, local communities andconservation activities, and open our facilities to the public for

employees and their families, and ask for their continued

use as venues for various community events.

guidance and understanding.

In Japan, we further demonstrated our commitment
to enhancing our social contribution activities by opening
the Heartful Volunteer Support Center in July 2008 forundertaking a variety of community-oriented efforts. The
center disseminates volunteer-related information toAugust 2009

employees along with relevant information to the residents
of local communities. It also provides learning opportunities
concerning volunteering for events and support forparticipants in volunteer activities.

Tadashi Ishikawa
Chairman

We are also committed to engaging in local social
contribution activities globally. Examples include the cleanupof nearby highways and participating in tree-planting activities
in parks by employees at our U.S. subsidiaries. Also, after the
Sichuan earthquake in China, we donated monetary aid andTetsuro Toyoda
President

our lift trucks and sent relief supplies.

Toyota Industries Report 20095

Summary of Business Activities

Business Performance for the Year Ended March 31, 2009Materials Handling Equipment
Main Products• Lift trucks• Warehouse trucks• Aerial work platforms• Automated storage and retrieval
systems• Automatic guided vehicles

Automobile
Main Products• Passenger vehicles (Vitz [Yaris outside Japan],
RAV4, Mark X ZiO)

• Diesel engines• Gasoline engines• Car air-conditioning compressors• Electronic components for automobiles• Foundry parts• Stamping dies

Logistics
Main Services• Land transportation services• Logistics planning• Operation of distribution centers• Cash collection and delivery and cash
proceeds management services• Data storage, management,collection and delivery services

Textile Machinery
Main Products• Ring spinning frames• Roving frames• Air-jet looms

OthersMain Products• Semiconductor package substrates• Manufacturing equipment

6

Toyota Industries Report 2009

In the materials handling equipment industry as a whole, the global market deteriorated,
experiencing an unprecedentedly sharp drop particularly since October 2008. Amid thisenvironment, unit sales of lift trucks, a mainstay product of this segment, decreased for boththe TOYOTA and BT brands despite vigorous sales promotion activities worldwide. In addition,a decrease in sales of aerial work platforms and the negative impact of foreign exchange rate
fluctuations resulted in a decrease in net sales of ¥143.5 billion, or 18%, to ¥639.6 billion.

The automobile industry underwent a rapid market contraction in developed countries while market
growth slowed in emerging markets, in which expansion was expected. Amid this environment, net salesof the Automobile Segment totaled ¥755.9 billion, a decrease of ¥213.3 billion, or 22%.
Within this segment, net sales of the Vehicle Business were ¥378.1 billion, a decrease of ¥122.0
billion, or 24%, due primarily to decreases in sales of the Vitz (Yaris outside Japan), RAV4 and Mark X ZiO.
Net sales of the Engine Business totaled ¥156.6 billion, falling ¥22.1 billion, or 12%. This was mainly
attributable to a decrease in sales of AD diesel engines, which are installed primarily in the RAV4.
Net sales of the Car Air-Conditioning Compressor Business decreased ¥67.2 billion, or 26%, to¥186.3 billion, as a result of a dramatic decrease in production at automakers in North America, Europe
and Japan.

The overall operating environment remained severe in the logistics industry as the volume ofcargo transport continued to decline in the domestic market. Amid this environment, net salesof the Logistics Segment totaled ¥114.8 billion, a decrease of ¥2.7 billion, or 2%. Although salesrose for such specialized service operations as cash collection and delivery and cash proceeds
management as well as data storage, management, collection and delivery services, this wasoffset by a decrease in sales of the cargo transport business of automotive parts.

In the textile machinery industry, the markets rapidly deteriorated in China and India, our primarymarkets, as a result of the economic slowdown in Europe and the United States. Amid thisenvironment, net sales of the Textile Machinery Segment amounted to ¥29.5 billion, a decreaseof ¥36.7 billion, or 55%, attributable mainly to a sharp drop in sales of air-jet looms, our mainstay
product, to China.

The Others Segment includes TIBC Corporation, a joint venture with IBIDEN CO., LTD., that
produces semiconductor package substrates. Amid a deteriorating market environment, net salesof the Others Segment totaled ¥44.2 billion, a decline of ¥20.0 billion, or 31%.

Percentage of
Net Sales

Net Sales

Operating Income(¥ Billion)(¥ Billion)

800

50
40

600

30
400

40.4%

20
200

GENEO-B

TraigoElectric counterbalanced
lift truck

Electric lift truck

SB12A
Truck mount aerial work
platform

ES14electric compressor

10

0
(FY)

Percentage of
Net Sales

0

07

08

09

(FY)

07

08

09

Net Sales

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

1,000

60

(Scroll type)

800

Vitz

47.7%

(Yaris outside Japan)

40

600
20
400
0

200

AD
diesel engine

PCU direct cooling device
for the new Prius0(FY)

Percentage of
Net Sales
7.2%

-20

07

08

09

(FY)

07

08

09

Net Sales

Operating Income(¥ Billion)(¥ Billion)

120

5

100

4

80

3

60
2

40
Cash collection and delivery andcash proceeds management
services

Data storage, management,collection and delivery services

1

20

Land transportation services

0
(FY)

0

07

08

09

(FY)

07

08

09

Percentage of
Net Sales

Net Sales

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

1.9%

80

5

60
2.5
40

RX240 series

JAT710Ring spinning frame

Air-jet loom

0

20
0
(FY)

Percentage of
Net Sales
2.8%

-2.5

07

08

09

(FY)

07

08

09

Net Sales

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

80

8
6

60

4
40
2

Flip chip package substrate for PC
microprocessor unit

20

0

0
(FY)

-2

07

08

09

(FY)

07

08

09

Note: Segment net sales figures do not include inter-segment transactions. However, segment operating income (loss) figures do include operating income (loss) arising from inter-segment transactions.

Toyota Industries Report 20097

Summary of Business Activities

Materials Handling Equipment
The World’s Leading Materials Handling Supplier—
Providing Customers with Optimum Solutions

Toyota Industries’ Materials Handling Equipment Business engages in thedevelopment, production, sales and service of industrial vehicles suchas counterbalanced lift trucks with 0.5- to 43-ton load capacities and awide range of warehouse equipment such as systems for transportation,
storage and retrieval of goods.
As a leading manufacturer of lift trucks and other materials handlingequipment with expertise in logistics throughout the world, we offer a
product range that includes the TOYOTA, BT, RAYMOND and CESAB
brands under the organization of Toyota Material Handling Group (TMHG)
as well as AICHI, a top brand in Japan for aerial work platforms.
Toyota Industries provides complete materials handling solutions,featuring high-quality products and services, cutting-edge technologies
and extensive materials handling know-how through our global sales
and service network. In doing so, we also remain keenly responsive to avariety of customer needs for logistics.

Toyota Material Handling Group
Toyota has a solid position for
counterbalanced lift trucks inJapan and around the world.
In March 2008, Toyota marked
an important milestone,
reaching cumulative productionof its 2,000,000th lift truck.
For warehouse trucks, BT isparticularly strong in the European
market and Raymond is in aleading position in North America.
TMHG will continue to carryout aggressive sales promotion
activities by leveraging eachbrand’s strong presence inrespective regions.

Lift Truck Sales(Thousand units)

250

Responding to Changes in Business
Environment
The slowdown in the U.S. economy continued during 2008. Markets thatpeaked in 2008, such as Europe, Asia and Oceania, began to contractfrom the second half, a trend that continued through the end of the fiscal
year. In this challenging market environment, TMHG experienced lower
unit sales in all markets in fiscal 2009.
While the materials handling equipment market is expected to remainchallenging in 2009, we will continue to promote streamlining of ourstructure, including manufacturing equipment and personnel, in line withthe level of sales and production.
TMHG is implementing various activities and measures to growsynergies in the group. Examples include joint product development,
development of our own key components, strengthening of our
production structure through the horizontal deployment of the Toyota
Production System (TPS) throughout the entire group, integration of sales
structures and the mutual supply of products. These efforts are steadily
showing results across a wide range of fields.
Amid the difficult business environment, we will strengthen ourmanagement platform and lay the foundation for further growth byaccelerating initiatives to maximize synergies.

200

150

100

50

0
(FY)

05

06

07

08

09

Organizational Chart of Toyota Material Handling Group

TMHG
Management Committee (Global Strategy, Optimum Resource Allocation, Global Management Control)

TMHJ
TMHJ
Toyota Material Handling
Japan

8

Toyota Industries Report 2009

TMHNA

TMHE

TMHI

TMHCN

Toyota Material HandlingNorth America

Toyota Material Handling
EuropeToyota Material HandlingInternational

Toyota Material Handling
China

Japanese Market

North American Market

No. 1 Market Share in Lift Truck Sales

Leveraging Brand Strengths to Expand BusinessIn 2008, difficult conditions continued in the lift truck market in Japandue to the impact of the global economic downturn triggered by the U.S.
subprime mortgage crisis. Under these circumstances, unit sales by
Toyota Material Handling Japan (TMHJ) in fiscal 2009 declined about 19%
from the previous fiscal year to around 32,000 units.
TMHJ is committed to providing customers with top-quality, appealing
products and engages in aggressive sales and service activities to ensure
customer satisfaction after product purchases. Thanks to these initiatives,
we maintained a 41.6% share of the Japanese market, marking the 43rdconsecutive year that TMHJ has maintained the top-ranked position*1 in
the Japanese lift truck industry despite the severe business environment.

The North American market continued to decline due to the slowdown
in the U.S. economy. Toyota Material Handling North America (TMHNA)
reported sales of around 47,000 units corresponding to a roughly 18%
decrease in fiscal 2009.
TMHNA offers material handling solutions through a 2-channel,
2-brand strategy. The TOYOTA brand offers a broad range of electric andinternal-combustion lift trucks. The RAYMOND brand is positioned tofocus more on electric lift trucks for warehousing and distribution. Bothbrands have a demonstrated track record of performance and reliability.
Despite a decline in the market, Toyota grew its market share andremained the leading supplier of lift trucks for the seventh consecutive
year*2. Raymond also gained market share in the warehouse truck market
by having focused on its solutions-based product offering. Combined,
the TOYOTA and RAYMOND brands have the largest market presence inNorth America.

*1: Surveys by Japan Industrial Vehicles Association and Toyota Industries Corporation, 2008

Releasing New Products with Excellent Environmental and
Safety Features
In 2008, there was growing public interest in energy conservation andenvironmental issues spurred by soaring crude
oil prices and the start of the first commitment
period for reducing greenhouse gas emissions
under the Kyoto Protocol. With sales of electric
lift trucks now surpassing those for internalcombustion lift trucks, TMHJ worked tostrengthen the appeal of its electric lift trucks by
GENEO-Bmaking minor model changes to the GENEO-B
AC-powered electric counterbalanced lift truckin April 2008 and to the GENEO-R AC-powered
electric reach truck in July 2008.
Along with products that contributeto environmental protection and energy
conservation, TMHJ also introduced productsthat contribute to safety. In January 2009, a rear
GENEO-Rdetection system was launched as an optional
device for lift trucks to support the detection of persons working behind
lift trucks during operation. Toyota Industries continues to contribute to
the realization of safety at logistics sites.

Strengthening Product Appeal for Electric Lift Trucks andOther Products
The difficult conditions facing the lift truck market are expected tocontinue in 2009. Under these circumstances, TMHJ expects the
proportion of sales accounted for by electric lift trucks to trend upward
due to rising interest in energy conservation and environmental concerns
as well as robust business in foods, pharmaceuticals and other industries
that require clean working environments. In addressing these trends,
TMHJ will make unprecedented efforts to strengthen its development ofelectric lift trucks and introduce highly competitive products.
Toyota Industries is preparing for the December 2009 launch of a
new internal-combustion hybrid lift truck developed by combining a diesel
engine, electric motor and battery to achieve a sharp improvement in fuelefficiency.
Based on the watchwords “environment and safety,” TMHJ willcontinue providing optimal materials handling solutions for customers
through an extensive product lineup that encompasses lift trucks,
warehouse trucks, automated storage and retrieval systems, automatic
guided vehicles and aerial work platforms combined with an abundanceof know-how and enhanced service structure.

*2: Survey by Crist Information & Research, LLC, 2008

Introducing Reach Trucks and Other New Products
In fiscal 2009, TMHNA introduced multiple products to the North
American market. Toyota unveiled its new line of
8-Series AC reach trucks, including a single reachmodel in 3,500- and 4,500-pound load capacities
and a 3,000-pound capacity double reach model.
Toyota also introduced increased capacity (22,000to 35,000-pound) internal-combustion pneumatic
models. Raymond introduced its sit/stand Model
8-Series
7600 Reach-Fork® and a new Model 9600®
Swing-Reach , which features AC technology
and regenerative lowering for automatic battery
recharging. Raymond also launched a Model
8900 pallet truck to enhance its product lineup.
To expand its offering beyond lift trucks, Raymondlaunched its upgraded iWarehouse™ fleet
9600 Swing-Reach®
optimization system, which featured a new data
analysis and reporting via Web portal.

Pursuing Further Efficiency in Logistics
The North American market is expected to be extremely challenging in2009. Toyota will focus on the development and sales of electric models,
for which market share is growing, and other products and continuing
to provide the industry’s leading customer satisfaction, quality products
and support. Raymond will continue to offer solutions-based innovations
that increase customer efficiencies and improve operations. In this way,
TMHNA will continuously search for ways to improve materials handlingefficiency and operations to assist customers.

Toyota Industries Report 20099

Summary of Business Activities

Materials Handling Equipment
European Market

International and Chinese Markets

Integrating the Sales Network for TOYOTA and BT Brands

Engaging in Business in Emerging Countries

During the first half of 2008, the lift truck market in Europe continued togrow, reaching a new peak before declining sharply in the second half ofthe year in the wake of the global economic downturn. Toyota Material
Handling Europe (TMHE) reported unit sales of around 62,000 units for
the TOYOTA, BT and CESAB brands in fiscal 2009, representing a roughly
16% decline compared with the previous fiscal year.
Since starting its operations in 2006, TMHE has built a neworganization integrating Toyota and BT businesses in most European
markets. With its comprehensive offering of Toyota counterbalanced lift
trucks and BT warehouse trucks, service and added-value solutions,
TMHE is now able to respond to a wide variety of customer requirements.

Toyota Material Handling International (TMHI) covers the markets of Asia,
the Middle East, Oceania, Latin America and Africa, while Toyota Material
Handling China (TMHCN) covers the Chinese market. These markets havelong experienced increasing demand for industrial vehicles supported by
global economic expansion. However, due to the negative impact fromthe global economic decline that began to spread throughout the worldin the second half of fiscal 2009, unit sales of industrial vehicles in theInternational and Chinese markets dropped about 16% to around 28,000
units.

Reinforcing Structures for Production, Sales and Service in
Respective Markets
Promoting a Switchover to New Models
TMHE has completed a two-year program to enhance its lineup withnew products manufactured at its factories in France, Sweden and Italy
that address 70% of the European market potential. Initiatives kicked off
with the launch in fiscal 2008 of the Toyota Tonero. In fiscal 2009, TMHE
launched five new TOYOTA, BT and CESAB product series.
The new Toyota Traigo 48 range of 3-wheel and 4-wheel electriccounterbalanced lift trucks addresses a key market
sector with 10 compact models.
The new BT Levio powered pallet trucks andnew BT Staxio pedestrian powered stackers address
Europe’s largest industrial truck market segment interms of units sold. The new BT Reflex reach truck
continues BT’s tradition of reach truck excellence with
Levio
five load capacities.
CESAB also launched the new Eco/P hightonnage electric counterbalanced lift truck, with load
capacities of 6.0, 7.0 and 8.5 tons.
The Toyota Traigo 48 and CESAB Eco/P are
manufactured in Italy, and the BT Levio, BT Staxio
and BT Reflex are manufactured in Sweden.
Sales of TMHE’s new products have beenencouraging in today’s difficult market environment.
Traigo 48
The Toyota Traigo 48 and BT Levio both received
the prestigious iF Product Design Award 2009 for design excellence.
TMHE also rolled out a tailored fleet management system called
Toyota I_Site, which gives companies the information they need to cut
costs and optimize their fleets.

Delivering the Support Customers NeedIn 2009, the European business climate is expected to remain highly
challenging. In this situation, TMHE’s new network structure brings it
closer to customers with the complete product lineup supported byflexible services and solutions that add value in today’s market. With
short- and long-term rental, certified used trucks and fleet management
backed by a comprehensive service organization, TMHE is positioned asa leading full-service materials handling supplier.

10

Toyota Industries Report 2009

TMHI has continued to develop its sales and service capabilities in many
international markets, especially Brazil, India and Australia. TMHI has
further strengthened its ability to offer a competitive product range tocustomers by launching the BT Levio powered pallet truck, BT Staxio
pedestrian powered stacker and BT Reflex reach truck.
In Brazil, TMHI established a unified sales and service organizationthat has bolstered operations and provides customers with total support
for the full range of products available in the market. This fortified position
will enable TMHI to weather the current market slump and emerge
stronger.
In India, the ability to provide comprehensive customer support
via a single organization was achieved by merging all sales and service
operations. At the CeMAT India international trade fair for materials
handling and logistics held in August 2008, TMHI exhibited new products
and attracted a great deal of interest from various types of customers.
In Australia, TMHI focused resources and started to introduce a newcompany structure that will improve operations and enhance customer
value. Ongoing improvement of operations and strengthening ofcompetitiveness will be pursued to meet customers’ expectations toward
TMHI as a strong and reliable business partner.
By implementing various measures to strengthen its presence in
the International market, TMHI will build a strong foundation to ensuresustainable growth.
China has expanded to become the world’s second largest market
for lift trucks after the United States, and its importance is rising not
only as a production base but also as a market for sales. To respond to
customers’ needs in this market, Toyota Material Handling (Shanghai)Co., Ltd., a sales company of TMHCN, strengthened its product lineup
to encompass the BT and RAYMOND brands in addition to the TOYOTA
brand, while strengthening its sales bases. In production, Toyota Industry(Kunshan) Co., Ltd. expanded local procurement and devoted efforts to
reducing lead times.

Making Inroads into Untapped Markets
In 2009, the International and Chinese markets are expected to remain
sluggish. In response, we will actively advance into untapped markets andengage in initiatives to enhance convenience for customers in terms ofsales and services.

Topics

TMHNA: Exhibited at ProMat 2009
TMHNA exhibited new TOYOTA- and RAYMOND-brand products
at ProMat 2009, North America’s premier materials handling andlogistics trade show held in Chicago in January 2009.
Toyota’s exhibit featured the North American debut of the Toyota
8-Series AC Reach Truck as well as the Toyota Hybrid Concept Lift
Truck. The concept truck was well received and demonstrated thecompany’s global charter to develop innovative technologies andproducts that are environmentally responsible and economically
viable.
Raymond showcased its new marketing campaign featuring
custom solutions, with the latest updates on special services suchas Leasing and Rental, Service and Support, and Raymond parts.
Also presented were Raymond’s latest advances in its iWarehouse™
fleet optimization system along with its innovative new products, theSit/Stand Reach-Fork® and new energy-efficient Swing-Reach®.

TOYOTA boothPreparing to Launch Internal-Combustion
Hybrid Lift Trucks
In December 2009, Toyota Industries will launch sales in Japan of the
3.5-ton GENEO-HYBRID, a hybrid lift truck that combines a diesel
engine, electric motor and battery.
For the GENEO-HYBRID, Toyota Industries independently
developed a hybrid system matched to the characteristics of lift
trucks by utilizing Toyota Motor Corporation’s hybrid technologies.
This enables the GENEO-HYBRID to maintain the same work
performance as current 3.5-ton diesel engine lift trucks, while
reducing CO2 emissions and fuel consumption by approximately
50%* and thereby realizing world top-class fuel performance.
Toyota Industries will continue to lead in developing andcommercializing environmentally sound products that contribute toenergy conservation and help reduce environmental impact.
* Measurement values by Toyota Industries using Japan Industrial Standards (JIS)work cycle

RAYMOND booth

GENEO-HYBRID
Note: The external appearance of the actual productsold could differ from that shown in the photo.

TMHE: Exhibited at CeMAT 2008

TMHI: Held Distributor ConferenceWith the theme “stronger together,” TMHE unveiled its new, integratedorganization as a reliable business partner with a comprehensive
materials handling lineup at CeMAT 2008, which was held in Hanover,Germany, in May 2008.
For the first time at a leading European fair, TOYOTA and BT
products shared the same stage, together with TMHE services andsolutions including Toyota I_Site fleet management system. CESAB
displayed a range of products including its new Eco/P high-tonnage
electric counterbalanced lift truck.
The Toyota Hybrid Concept Lift Truck was presented for the
first time in Europe and received keen interest from customers andjournalists.

Distributors from over 40 countries attended the TMHI Distributor
Conference 2008 last October in Sweden. The agenda-packed event
included product demonstrations, workshops and a factory tour.
In terms of product highlights, the new BT Reflex reach truck
was launched, and the BT Levio powered pallet truck and BT Staxio
pedestrian powered stacker were re-launched for TMHI markets.
Participants learned about functions and improvements of the
new products and had the opportunity to try them out for future sales
activities.

Toyota Hybrid Concept Lift Truck

TMHE boothToyota Industries Report 200911

Summary of Business Activities

VehicleTop-Level QCD among Toyota Group Automobile
Body Manufacturers

Toyota Industries assembles
Vehicle Production
compact and midsize(Thousand units)
400
automobiles of Toyota Motor
Corporation (TMC). We currently
manufacture the Vitz (Yaris
300
outside Japan), the RAV4
for overseas markets and the200Mark X ZiO for the Japanesemarket.
Toyota Industries’ Vehicle
100
Business boasts top-level quality,
cost and delivery (QCD) among0
automobile body manufacturers
05
06
07
08
09
(FY)
in the Toyota Group. Other
strengths include a flexible production structure such as highly acclaimed
production preparation in a short period of time.

Further Raising QCD
To the present, Toyota Industries strives to enhance production efficiency
and quality improvements based on the Toyota Production System(TPS). Consequently, we have received the Superior Quality PerformanceAward numerous times from TMC in recognition of our outstandingachievements. We will further raise QCD by continuing to carry out
improvement activities together with all departments of the Vehicle
Business, including non-manufacturing departments.

VehiclesParticipating in the Planning and Developmentof Mark X ZiO Special-Edition Models
While assembling the Mark X ZiO, Toyota Industries also participated in
the planning and development of two special-edition Mark X ZiO models:the Mark X ZiO Black Pearl Limited (August 2008 to January 2009) andthe Mark X ZiO Aerial (from February 2009).
The Mark X ZiO Black Pearl Limited’s entire exterior is adorned withblack pearl-tone decorative patterns for an external appearance thatradiates a mysterious, sophisticated aura. Meanwhile, the Mark X ZiOAerial projects a sporty image by incorporating specialized aeroparts
such as the front grille, front bumper and side mudguards in addition tocustomized seat upholstery.

Vitz (Yaris outside Japan)

Initiatives for Realizing Lightweight
Car Bodies
Toyota Industries is progressing with the development of plastic glazing,
which is highly effective in helping to realize lightweight vehicles.
Plastic glazing uses the raw material polycarbonate, which has
approximately half the specific gravity of glass. The use of plastic glazing
for a panorama roof enables the weight of a vehicle to be reduced byapproximately 9kg compared with when using glass. Lowering theweight of automobile bodies in this manner provides a host of benefits
that include reducing CO2 and other substances of concern that place aload on the environment. Moreover, realizing lighter weights for the upper
part of car bodies enables a low center of gravity and enhanced driving
performance. Additionally, developing plastic glazing, which possesses avariety of potentials, allows for new styling proposals not possible whenusing the traditional combination of glass and steel sheet, a benefit that
we expect will make an important contribution to the creation of futuregeneration vehicles.

12

Toyota Industries Report 2009

RAV4

Mark X ZiO (Aerial)Summary of Business Activities

EngineBusiness Development Centered on the Two Pillarsof Clean Diesel Engines and Gasoline Engines

Toyota Industries’ Engine
Engine Production
Business manufactures both(Thousand units)
600
diesel and gasoline engines. Of
particular note, in diesel engines
500
we are collaborating with Toyota
Motor Corporation (TMC) in the400
development of fuel-efficient,300
clean diesel engines, with our
involvement spanning all phases
200of this process from planningand development to production.
100
In gasoline engines, we operate0
a flexible production structure
05
06
07
08
(FY)
that deploys automatic guided
vehicles to respond quickly tochanges in model types and production volumes.

Commencing Production of MZ Gasoline
Engines
Toyota Industries began producing 3.3-liter, V6 MZ gasoline engines
for TMC in December 2008. These engines are being installed in suchmodels as the Highlander Hybrid and the Harrier Hybrid.

Starting Production of Materials Handling
Equipment Engines that Comply with Act on
Regulation, Etc. of Emissions from Non-Road
Special Motor Vehicles
09

AD Diesel Engines—World’s First to be
Certified as Euro 5 Compliant
In November 2008, Toyota Industries commenced production of 2.0- and2.2-liter, in-line 4-cylinder AD clean diesel engines developed jointly with
TMC.
These engines clear Euro 5 emission standards, the European
emission standards that set the acceptable limits for NOx emissions at
0.18g/km and at 0.005g/km for particulate matter. AD diesel engines havebecome the world’s first to be certified as Euro 5 compliant.
Besides achieving cleaner emissions thanks to an approximately 10%
reduction in CO2 emissions compared with the previous model, these
AD diesel engines also realize a sharp rise in fuel efficiency in addition tooffering enhanced driving performance features such as improved lowspeed torque.
Toyota Industries’ AD diesel engines are fitted in the Corolla andRAV4 for the European market.

In August 2008, we began producing the 1DZ-III diesel engines developedby Toyota Industries for the GENEO internal-combustion counterbalanced
lift truck and for skid steer loaders. This new diesel engine complies withJapan’s Act on Regulation, Etc. of Emissions from Non-Road Special
Motor Vehicles.
This is just one example illustrating that Toyota Industries significantly
enhances the appeal of its engines by developing models matched to thecharacteristics of each type of our materials handling equipment.

Expanding Our Role as an Engine
Manufacturer
As one choice for powering vehicles to realize a low-carbon society, diesel
engines are enjoying increasing acclaim thanks to their enhanced fueleconomy compared with gasoline engines as well as lower emissions.
Through developing and producing diesel engines, together with the
production of gasoline and industrial-use engines, Toyota Industries will
strive to expand its role as an engine manufacturer.

Engines

Production of AR Gasoline Engines Begins
In December 2008, Toyota Industries began producing 2.5-liter, in-line
4-cylinder AR gasoline engines for TMC. AR engines are next-generationengines that are outstanding in terms of high performance, fuel efficiency
and low emissions.
In gasoline engines, Toyota Industries boasts notable strengths incarrying out highly efficient production of multiple types of engines in small
lots on the same production line. We have now broadened the scopeof our Engine Business by starting production of AR gasoline engines
fitted in a variety of mass-market vehicles such as the RAV4 for overseas
markets.

AD diesel engine

1DZ-Ⅲ diesel engine

AR gasoline engine

MZ gasoline engine

Toyota Industries Report 200913

Summary of Business Activities

Car Air-Conditioning Compressor
Outstanding Technologies and Superb Quality Have Earned
Us the Highest Level of Trust from Automakers Worldwide

Toyota Industries’ car airCompressor Sales
conditioning compressors achieve(Million units)
25
world-class quality in termsof reliability at high operating
20
speeds and quiet operation in
addition to such environmental15
related performance features asfuel efficiency, compactness and
10weight reduction.
We offer a wide range
5of variable-displacement
compressors that suitably control
0cooling in accordance with the
05
06
07
08
09
(FY)
temperatures inside and outside
the vehicle and the state of thevehicle’s engine in addition to our line of compact, lightweight fixeddisplacement compressors. Both types of compressors have been
extensively adopted by leading-name Japanese and overseas automakers
and command the global No. 1* share in terms of sales volume.

Toyota Industries has already integrated inverters into the ES27
compressor fitted in the Lexus RX450h and into the ES34 compressor
fitted in the Lexus LS600h. In this manner, Toyota Industries is expanding
its series of electric compressors ranging from compact to large-classvehicles, thereby offering a line of electric compressors that can be fitted
in a diverse range of vehicles.
All of the aforementioned compressors are fully electrically driven andintegrate a built-in motor that drives the compressor. Therefore, thesecompressors allow the air conditioner to be operated even when the
hybrid vehicle’s engine is stopped, thus realizing an ideal balance between
fuel efficiency and comfort.

An Industry-Leading Company
Toyota Industries’ Car Air-Conditioning Compressor Business hasremained the industry leader by continually deploying its unique
technological capabilities to develop new products ahead of competitors.
While striving to raise quality, we will maintain our commitment todeveloping new car air-conditioning compressors that respond quickly
and accurately to the needs of customers worldwide.

*Survey by Toyota Industries Corporation

Responding to Changes in Business
Environment
In response to the decrease in the production volume of car airconditioning compressors accompanied by the automobile market
contraction, we are streamlining the structure, including manufacturing
equipment and personnel, at respective manufacturing sites around theworld in an effort to improve profitability.
By utilizing internally developed and fabricated production equipment,
we strive to accumulate technology and know-how while at the same timecarrying out high-quality, efficient manufacturing operations. This versatileequipment also enables efficient capital investment.
In product development, we have been involved in the developmentof car air-conditioning compressors not only for internal-combustion
vehicles but also for electric vehicles from an early stage. In particular, ourelectric compressors for hybrid vehicles, for which demand is expected
to grow substantially, have already been installed in a lineup of TOYOTA
hybrid vehicles, including the Prius.
We will further strengthen our product appeal and strive to continue
leading the industry in the field of electric compressors as well.

Development of the ES14 Electric Compressor
for the Latest Prius
Toyota Industries developed the ES14 electric car air-conditioning
compressor for the new Prius launched in May 2009. By realizing
approximately 20% reductions in both cubic volume and weight, the
new ES14 is more compact and lighter than the predecessor ES18
compressor.
As another noteworthy technical achievement, we have succeeded
in integrating an inverter that previously required installation in a separate
location into a car air-conditioning compressor, thus enabling a dramaticenhancement in the mountability of compressors. This inverter wasdeveloped by Toyota Industries’ Electronics Division.

Compressors

ES14 electric compressor

ES27 electric compressor(Scroll type)(Scroll type)

ES34 electric compressor

10S17 compressor(Scroll type)(Swash-plate fixed-displacement type)

7SBU16 compressor

7SEU17 compressor(Swash-plate internally controlled
variable-displacement type)(Swash-plate externally controlled, clutchlessvariable-displacement type)

Note: Photos of cross sections of products are used.

14

Toyota Industries Report 2009

Summary of Business Activities

Car Electronics
Components and Devices that Support Ongoing
Advances in Hybrid Vehicles

Toyota Industries develops and manufactures an assortment ofelectronic components and devices for automobiles. Our development
and manufacturing capabilities have been cultivated through our powerelectronics circuit technologies and electric drive system.

Development of a PCU Cooling Device
for the New Prius
Based on power electronics technology applied in the developmentof electric lift trucks, we undertook in-house production of electronic
components from each business division and have accumulated a vastarray of technologies while carrying out development and manufacture of
power source devices for hybrid vehicles.
Previously, our development activities in car electronics have been
focused on such auxiliary power source devices as DC-DC converters.
Recently, however, we developed a cooling device for the power control
unit (PCU), which is a core component for hybrid vehicles and is installedin the new Prius launched in May 2009.
The PCU raises the voltage of the hybrid car battery and converts
the direct current into an alternating current using an inverter to drive
the motor of the hybrid vehicle. Previously, controlling the heat of thepower semiconductor devices that compose the PCU was a major
technical issue. By adopting a direct-cooling method utilizing our inhouse technologies, however, Toyota Industries supported the realizationof a compact PCU that lowers the cooling device’s thermal resistanceand significantly improves cooling performance. This miniaturization
technology has won high acclaim, and in recognition of this achievement,
Toyota Industries was presented with the fiscal 2009 Project Award(Technology Category) from Toyota Motor Corporation.
In addition to this cooling device, we manufacture reactors that raisethe voltage of batteries and cases that store component parts.

DC-DC Converter Developed
for the Latest Prius
We have developed a DC-DC converter for the latest Prius launched in
May 2009. This new converter converts the high-voltage direct currentof the main battery to a lower voltage to charge the auxiliary battery andsupply power to the lights, wipers, horn and other in-car devices. Afterour converters were installed in the first-generation Prius, we have steadily
expanded our series of DC-DC converters, which were subsequently
chosen for the Camry Hybrid and the second-generation and new thirdgeneration Prius.

Newly Developed DC-DC Converter for ElectricPower Steering on the Lexus RX Hybrid
The needs for further fuel efficiency have spurred an ongoing transition
from hydraulic power steering to electric power steering in vehicles.
In responding to this trend, Toyota Industries has developed andmanufactured a DC-DC converter, which converts the voltage of thebattery to the voltage of power steering. This DC-DC converter is installedin the Toyota Harrier, Lexus LS460 and the Lexus LS600h. Most recently,
our new high-power DC-DC converter has been installed in the Lexus
RX450h introduced in April 2009.

100W DC-AC Inverter Developed
for the New Alphard and Other Vehicles
Toyota Industries has developed a new 100W DC-AC inverter for vehicles
including the new Alphard, which was released in May 2008. This inverter
converts the 12V direct current of the auxiliary battery into a 100V
alternating current and enables the use of maximum 100W home electric
appliances in automobiles. Compared with previous products, this new
inverter is approximately 36% more compact and 33% more lightweight.
Moreover, the inverter significantly reduces the use of substances ofconcern.
Our lineup of DC-AC inverters ranges from 100W to 1,500W types,
which are installed in a wide variety of vehicles.

Toward the Realization of a Low-Carbon
Society
As we focus on further advances in hybrid vehicles, we are carrying out
continuous quality-improvement activities, while cooperating with otherbusiness divisions to create technologies for compact, more lightweight
and low-cost components and devices. To realize a low-carbon society,
we are developing products for electric vehicles and plug-in hybrid
vehicles, which can be recharged using household power sources. In
addition, we are making efforts to build a recharging system including an
infrastructure.

Car Electronics Devices

PCU direct cooling device
for the new Prius

DC-DC converter
for the new Prius

DC-DC converter for the
new Lexus RX Hybrid

100W DC-AC inverter

Toyota Industries Report 200915

Summary of Business Activities

Logistics
Proposing Efficient Logistics Services Utilizing Our
Know-How Cultivated in Manufacturing

Toyota Industries’ Logistics Business is composed of three business pillars:planning, design and operation of distribution centers, high value-added
services and distribution of automotive parts. High value-added services areprovided through two subsidiaries, Asahi Security Co., Ltd. (Asahi Security)and Wanbishi Archives Co., Ltd. (Wanbishi Archives), while the distributionof automotive parts is offered via the Taikoh Transportation Group.
Toyota Industries foresees a rising need for efficient, high-quality
logistics and will strive to meet the expectations of numerous customers bymaking proposals for logistics services that eliminate waste based on the
Toyota Production System (TPS).

Planning, Design and Operation of Distribution
Centers
Serving as the core of these operations, the Advanced Logistics Division
and Advanced Logistics Solutions Co., Ltd. (ALSO), a wholly owned
subsidiary, make proposals for logistics plans and operate distribution
centers for corporate customers. To the present, we have provided
services to customers in a variety of sectors, including pharmaceuticalcompanies, food wholesalers and supermarkets. We make every effort
to go beyond merely providing consigned logistics services. Instead, wework to increase the overall efficiency of logistics by identifying and solving
new problems from customers’ viewpoints as we implement logistics
solutions.

High Value-Added Services
Asahi Security meets the needs of customers in the retail and service
sectors by engaging in the equipment security business and providing
cash management outsourcing services such as cash collection
and delivery and cash proceeds management services. As anotherindispensable, high value-added service, Wanbishi Archives provides
sophisticated risk-related services that encompass storing, managing,collecting, delivering and confidentially carrying out data destruction forgovernment agencies and companies and providing data backup in theevent of disasters.

sorted onto pallets, thereby assuring that automakers are supplied with“what is needed, when it is needed, and in the amount needed.” Throughcooperation with Toyota Motor Corporation, Taikoh Transportation
pioneered the completion of the industry’s first automotive parts logistics
system consisting of relay (intermediate) logistic bases, which supports
the efficient production of automakers through logistics.

Helping Reduce Customers’ Total Logistics
Costs
Toyota Industries will continue responding to customer needs for
reducing total logistics costs and improving logistics by drawing on
its extensive expertise gained through the manufacture and sale of lift
trucks, automated storage and retrieval systems and other materials
handling equipment as well as by utilizing our TPS know-how cultivated at
manufacturing sites.

TopicsExpanding the Use of Rail Transport ofCompleted Lift Trucks
In 2002, Toyota Industries became the first lift truck manufacturer
to use rail transport for shipping completed lift trucks. To thepresent, we have shifted from sea to rail transport for our under2-ton, small lift trucks. This shift gained further momentum in
December 2008 when we commenced rail transport for shipping
2- to 3-ton, mid-sized lift trucks deploying 31-foot containers, as
we made strides toward further reducing the environmental loadfrom our logistics and enhancing logistics efficiency.
Our switchover to rail transport yields a host of benefits,
chief among these, an approximately 40% reduction in CO2 perlift truck shipped as well as a maximum 8-day reduction in leadtimes.
Looking ahead, we intend to further expand our use of railtransport and work to reduce CO2 emissions and delivery times.

Asahi Security Begins Operating theShin-Misato Center

Asahi Security’s cash collection
and delivery and cash proceeds
management services

Wanbishi Archives’ data storage,
management, collection anddelivery services

Distribution ofAutomotive Parts
The Taikoh Transportation Group
undertakes consigned transportation
for numerous automotive parts
manufacturers. These parts are collectedaccording to each delivery destination and16

Toyota Industries Report 2009

Taikoh Transportation’s landtransportation services

In May 2009, Asahi Security began operating its new Shin-Misato
Center in Saitama Prefecture as a center for its mainstay
business of cash collection and delivery services for the retailindustry.
The Kanto area, which includes Tokyo, accounts forapproximately 50% of sales generated in our cash collection
and delivery services for the retail industry, and we foresee highgrowth rates for these services in this area. Easily accessible
from both the Joban and Tohoku expressways, the Shin-Misato
Center will allow us to raise our level of customer services in thegrowing northern Kanto market area, and we anticipate this will
make an important contribution to our future business results.

Summary of Business Activities

Textile Machinery
Contributing to the Global Textile Industry
through Our Technologies and Ingenuity

With a history dating back to the
Air-Jet Loom Sales
invention of an automatic loom
(Thousand units)
12(weaving machine) by Toyota
Industries founder Sakichi Toyoda,
10
the Textile Machinery Business is aworld leader in the textile industry
8
backed by an integrated structure
6
that encompasses development,
production, sales and service. Toyota
4
Industries has consistently drawn on
its technological capabilities honed
2
throughout its long history and its
0tireless application of ingenuity to
05
06
07
08
09
(FY)
offer textile machinery that responds
to the needs of customers. We operate a global service network
consisting of 11 bases and an outstanding after-sales service structure toassist customers worldwide in raising productivity and quality.

Supported by a Wide-Ranging Product Lineup
and a Global Supply Structure
Our textile machinery can be generally divided into two categories,
namely, spinning machinery that spins bundles of fibers from cotton into
yarns and weaving machinery for weaving yarns into fabric.
The Spinning Machinery Business meets a broad range of customer
needs by offering an extensive lineup of spinning machinery, including ring
spinning frames and roving frames capable of both providing superior
productivity and spinning high-quality yarns.
Overseas, Kirloskar Toyoda Textile Machinery Pvt. Ltd. (KTTM), oursubsidiary in India, manufactures and supplies ring spinning frames,
primarily for the local market, and serves as an important part of ourglobal product supply structure. In fiscal 2009, we began sharing with
KTTM a new technology developed by the Kariya Plant for spinning highquality yarns with minimal fuzz. The sharing of this technology significantly
enhances our ability to respond to the needs of the local market for highgrade yarns.
The Weaving Machinery Business has commanded the world’s No. 1*
share in unit sales for its mainstay air-jet looms for 11 consecutive
years since 1997. However, in fiscal 2009 unit sales of air-jet looms
experienced an unavoidable sharp decline due to the severe impact of
the “once-in-a-century” global recession. Particularly noteworthy, sales
in China, the largest market for these looms, were adversely affectedby a combination of factors that included a decline in exports of textile
products to the United States in addition to the Chinese government’s
revision of the tax system and credit-tightening policies. Nonetheless,there are hopes that tax refunds implemented at the beginning of 2009,
combined with economic-stimulus measures, will spark a quick recovery
for air-jet looms in China.

population. In response, we will work to raise the productivity andoperability of our textile machinery. For air-jet looms, in particular, we will
pursue technologies for weaving high value-added fabrics while raising
environmental-related performance such as energy-saving and low-noise
operation.
On the sales front, in addition to focusing on China, we will actively
cultivate new markets such as Russia and central Asian countries. We will
also enhance our service capabilities by strengthening training for local
staff at service centers in China, Indonesia and other countries to offer
highly focused after-sales service while also carrying out Internet salesof spare parts. By taking these measures, we will respond to customer
demands and aim for the global No. 1 position in textile machinery.

TopicsIn 2008, Toyota Industries exhibited its textile machinery atinternational trade fairs held in China and India, the world’s twolargest markets for this machinery. Toyota Industries’ booths
featured the largest number of air-jet looms and other products
on display at both trade fairs and appealed our cutting-edge
technologies to numerous visitors. Demonstrations of producing
high value-added fabrics such as wool and Jacquard design
towels as well as high-quality yarn attracted visitors from aroundthe world.

ITMA ASIA + CITME 2008
held in July in Shanghai, China

INDIA ITME 2008
held in November in Bangalore, India

Spinning Machinery

RX240 series
ring spinning frame

FL200 roving frame

Weaving Machinery*Statistics from the International Textile Manufacturers Federation (ITMF)

Aiming to Be Global No. 1 in Textile Machinery
Toyota Industries expects that the volume of textile consumption will
increase over the medium and long terms in line with a rise in the world’s

JAT710 air-jet loom

Toyota Industries Report 200917

Environmental Initiatives

Special Feature ＞＞＞ Environmental Design for Lift Trucks

Advancing toward the Realization of
People- and Environment-Friendly Logistics
Lift trucks play a crucial role in logistics. As part of our firm commitment to creating environment-friendly logistics, Toyota
Industries continues to take on challenges in developing lift trucks that take the environment into account.

History of Continual Advances inEnvironmental Technologies for Lift Trucks

regulations, gradually became more forward-looking in anticipation ofregulations for pre-empting various environmental problems. In the 2000s,
we expanded the scope of our efforts by actively applying to our lift trucks
the leading-edge technologies cultivated in the Automobile Segment as amember of the Toyota Group.
With society confronting numerous environmental issues, Toyota
Industries will address environmental needs by pursuing further
technological advances in its lift trucks to realize logistics friendly topeople, the earth as well as the cargo being handled.

As a world-leading company in lift trucks and other materials handlingequipment, Toyota Industries develops technologies for creating productswith outstanding environmental performance to respond to a host ofenvironmental challenges occurring with the changing of the times.
Toyota Industries commenced production of gasoline-powered
lift trucks in 1956. Since then, our environmental technologies for lift
trucks, which initially focused on responding to environmental pollution■ History of Toyota Industries’ Environmentally Responsive Technologies in Lift Trucks

1990
Innovation ofenvironmentally
responsive technologies

2000

Response toregulations

Anticipation ofregulations

2010(Year)

Application of automotive technologies
Continuous
regeneration DPF

Environmentally
responsive items

Common rail
Exhaust gas recirculation+ oxidation catalytic muffler

Curbing global
warming

Counterweightrecycling

Environmental
risk reduction

Three-waycatalyst

Resource
utilization

Exhaust gas filter(diesel particulate filter (DPF))

Improvement ofdegradability
Electronicallycontrolled engine

Idling stop technologies

Fuel-cell
lift trucks
2009 〜 Hybrid lift trucks

2002 〜

Principal types oflift trucks
incorporating
environmental
technologies

1967 〜1961 〜
1956 〜18

Toyota Industries Report 2009

Natural gas-powered lift trucks

Electric lift trucks
Diesel-powered lift trucks
Gasoline-powered lift trucks/liquid petroleum gas (LPG)-powered lift trucks

Interview

Toward an Earth-Friendly Future in
Logistics
The Ideal Future of Environmental Technologies for Lift Trucks
We asked Kazuo Ishikawa, assistant general manager of Toyota Material Handling Japan’sTechnology Research & Development Center, to explain the future of Toyota Industries’
environmental initiatives in lift trucks.

Kazuo Ishikawa
Assistant general manager
Technology Research & Development Center
Toyota Material Handling Japan“I regard environmental initiatives as being equally important as a crucial social
responsibility for us as a manufacturer of lift trucks.”
Can you tell us about Toyota Industries’ environmental
initiatives in lift trucks to the present?
Toyota Industries’ first environmental initiative in lift trucks was thedevelopment of an exhaust-free electric lift truck*1. It was outstanding
from the perspective of preserving a healthy natural environment.
Besides emitting no exhaust, the electric lift truck was superior to theinternal-combustion lift truck in terms of low running costs. However,even though we continued increasing the power of our electric lift
trucks with each model change, they were still unable to match thepower provided by internal-combustion lift trucks. Because of thispower disparity, the electric lift truck was unable to fully satisfy theneeds of customers on the basis of usability.
As a solution, we developed the GENEO-B electric lift truck fittedwith an AC motor drive system. Launched in 1999, the GENEO-B
realized clean emissions, yet achieved high power and high efficiency.
As a result, this product earned extensive acclaim from customers as an“electric lift truck capable of replacing internal-combustion lift trucks.”
I believe the development of the GENEO-B marked the true start of
Toyota Industries’ proactive approach to developing environmental
technologies for lift trucks.
Because lift trucks are used where logistics operations actuallytake place, safety measures are first and foremost an indispensable
prerequisite. At the same time, however, I regard environmental
initiatives as being equally important as a crucial social responsibility
for us as a manufacturer of lift trucks.

What are some of the trends we can expect in yourdevelopment of lift trucks over the next several years?
In the immediate future, we plan to roll out a new hybrid lift truck*2 inDecember 2009.
Regarding the development of internal-combustion lift trucks,
we will continue to collaborate with the Automobile Segment on

improving fuel efficiency. Nevertheless, internal-combustion lift
trucks are powered by burning fossil fuels and this inevitably resultsin CO2 and exhaust emissions. From this perspective, it is easy to saythat electric lift trucks are the solution. Even though the GENEO-B
represented a quantum leap in resolving the major drawback of electric
lift trucks, namely, insufficient power, electric lift trucks are still unable
to completely deliver power on a par with that of internal-combustion
lift trucks. Our answer to this dilemma was the introduction of hybrid
lift trucks to sharply raise fuel efficiency while maintaining the samelevel of power as provided by internal-combustion lift trucks anddramatically reducing CO2 and exhaust emissions.
Our hybrid lift truck concept model unveiled in 2006 operatedusing the same type of motor as electric lift trucks. However, the motor
fitted in this hybrid delivered higher performance than a regular electricmotor and utilized a high-voltage system to boost power. For handlingloads, we adopted a parallel method*3 for the engine and electric motor.
By fitting the hybrid lift truck with a one-class-smaller engine in termsof exhaust emissions, we improved fuel efficiency, while the motor
helped compensate for insufficient engine power when lifting loads. By
taking this approach, we obtained the same level of power as provided
by internal-combustion lift trucks.
Over the immediate
term, a major theme will
be to create the most
optimal type of hybrid lift
trucks by drawing on theextensive power electronics
technologies cultivatedthrough our long years
of involvement in thedevelopment of electric
lift trucks.
Hybrid lift truck
Concept model unveiled in 2006

*1: To maintain clean environments inside warehouses and at food processing plants, Toyota Industries was an early forerunner in developing and introducing electric lift trucks and has worked topromote the widespread use of these vehicles. In 2008, Toyota Industries’ sales of electric lift trucks in Japan reached over 50% of total sales.
*2: In December 2009, Toyota Industries will launch sales in Japan of the 3.5-ton GENEO-HYBRID, which combines a diesel engine, electric motor and battery.
*3: Parallel method: A method for using the power of both the engine and the electric motor. Alternatively, with the series method, the engine generates power only while the electric motor
provides the drive power.

Toyota Industries Report 200919

What do you think lift trucks will look like a little farther
down the road?

Could you briefly touch upon any other key area
besides power source measures?

From a more long-term perspective, I believe that lift trucks shouldhead toward full electrification.
At present, we are naturally pursuing high performance and highefficiency for each individual component, such as controllers andmotors for electric lift trucks. Although we are attaining progress inthese efforts, I believe we can further improve efficiency and reduce
CO2 emissions by transitioning completely to electric power, including
for lifting and steering currently powered hydraulically. The main issue
will be choosing the appropriate power source. In countries with low
CO2 emissions volume per units of sales, battery recharging can serve
as a power source. However, in countries with high CO2 emissions
volume per units of sales that primarily rely on coal-fired electric
power, the use of battery recharging as a power source is unlikely
to significantly reduce CO2 emissions. I believe it is better for suchcountries to consider fuel cells as a power source.
Additionally, some of our customers operate lift trucks around theclock. At present, these customers must recharge lift truck batteries,
a process that requires long time periods, and use lift trucks while
continually interchanging batteries. Under such conditions, I believe
there are two viable choices for lowering running costs, namely, either
rely on fast recharging of batteries or use fuel cells depending on thenumber of lift trucks in operation.
Because both choices have advantages, Toyota Industries must
be able to offer customers proposals for lift trucks that operate on
optimal types of energy. In doing so, we need to evaluate a broad range
of factors such as whether a particular power source is suited to thescale of the customer’s operations, length of operating times and CO2
emissions volume per units of sales, as well as consider such questions
as what is the best power source or whether fuel-cell trucks should be
used from the outset.

One important issue is reducing energy consumption during thehorizontal—forward and backward—operation of lift trucks. Lift trucks
are equipped with a counterweight to maintain balance with the load
being handled. Other than the actual loads handled, the counterweightis one of the heaviest parts of a lift truck and this weight leads to hugeenergy losses during horizontal transportation. One solution envisioned
is dividing the process into two separate operations, specifically,loading and unloading as one operation and horizontal transportation
as another. However, lift trucks are extremely useful precisely because
these vehicles can perform both types of operations and are thus
ideal for use at numerous logistics sites. Given these advantages, it isunlikely that demand for lift trucks will ever disappear. To reduceenergy consumption during horizontal operation, I believe that several
measures will need to be taken. These include reevaluating the actual
structure and configuration of lift trucks to realize weight reductions.

Finally, what role do you envision for Toyota Industries
in the future?
One of Toyota Industries’ strengths is its comprehensive involvement in
virtually all aspects of logistics. While taking an overview of the entire
logistics process, we are able to orient the direction of our developmentfrom the perspective of the optimal types of lift trucks for each logistics
operation. I believe our role in lift truck development is to respond to
the logistics needs of all customers worldwide and propose the bestenergy mix from the dual perspectives of power sources and forms oftransportation.

“I believe our role in lift truck development is to respond to the logistics needsof all customers worldwide and propose the best energy mix from thedual perspectives of power sources and forms of transportation.”
TopicsTakahama Plant Showroom Introduces Toyota
Material Handling Group (TMHG) Products
A showroom was opened at the Takahama Plant to introduce customers to
Toyota Industries’ industrial vehicles, including lift trucks and hybrid lift trucks, aswell as materials handling equipment such as automated storage and retrieval
systems. Also featured are a variety of displays, including a video presentationthat covers the history of our products and introduces current products. These
displays provide customers with a deeper understanding of our industrial
vehicles and other materials handling equipment.
The Takahama Plant’s TMHG Technical Center, which houses theshowroom, was built in fiscal 2008. The center has adopted a host of ecofriendly measures to curb global warming, including the use of solar panels,
rooftop greenery and optical duct systems.

Showroom interior at the Takahama Plant

20

Toyota Industries Report 2009

Environmental Initiatives

Global Environmental Commitment
The Toyota Industries Group will contribute to the compatibility ofenvironmental conservation and economic growth throughout its wide
range of business activities, including automobile, materials handlingequipment, logistics and electronics.

Address environmental concerns by working in harmony
with both regional communities and global society.

Harmony

Basic Policy• The Toyota Industries Group will continue to set challenging targets
aimed at further reducing the environmental impact of its businessactivities, listening carefully to voices of its stakeholders such as
customers, and acting in compliance with the letter and spirit of laws
and regulations.
• The Toyota Industries Group will continuously improve its environmental
management, placing environmental activities among its highest
priorities. In particular, the Company will give priority to the following
items.
Curb global warming
Aiming to reduce energy consumption and the output of greenhousegases through the entire lifecycle of its products, services andproduction activities
Use resources more efficiently
Utilizing raw materials, water and other resources efficiently whileworking to reduce, reuse and recycle waste products
Reduce environmental risk factors
Reducing the use and output of substances of concern while evaluating
environmental risk factors at the planning stage of business activity inorder to prevent pollution

Sustainable
Management
Enhancement

Responsibility

Fulfill our social responsibility
to participate inenvironmental conservation.

Enhance the eco-efficiency of
all our business activities,
products and services.

• The Toyota Industries Group will aim to foster greater communicationand teamwork within a wide range of partnerships, including those withcustomers and suppliers, in order to promote sustainable managementof the environment. In addition, the Toyota 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 toour global society.

July 2005

Tetsuro Toyoda
President

Scope of Group-Wide Environmental Management

EuropeManufacturing
company: 4Asia
Manufacturing
company: 6

Japan
Toyota Industries: 10 plants
Manufacturing
company: 16(As of March 31, 2009)

North America
Manufacturing
company: 9

Non-manufacturing companies
Japan:
64
Outside Japan: 98

Toyota Industries Report 200921

Environmental Initiatives

Environmental Management
Environmental Management System
Toyota Industries uses an ISO 14001-based environmental management
system (EMS) as an effective tool in its efforts to promote environmental
management and fulfill its corporate social responsibility. To further raise
the level of its environmental management, in fiscal 2008 Toyota Industries
reorganized its EMS previously operated independently at respectiveplants and began operating a Company-wide EMS, with the president at
the top. In fiscal 2009, the Company-wide EMS underwent an external
audit for ISO 14001 certification and successfully obtained integrated
certification.
We intend to strengthen our environmental activities and accelerate
decision-making for environmental responses by operating our Companywide EMS in accordance with our business formats. At the same time,
we plan to formulate a medium- and long-term vision for this system andpromote various initiatives to realize ideal environmental management.

Establishment of the Company-Wide CO2Emission Reduction Conference
Toyota Industries’ activities to curb global warming in production activities
have traditionally focused on resource utilization and reducing risk inaddition to determining policies, targets and activity plans at meetings of
the Production Environment Subcommittee.
Nevertheless, with the increased urgency and importance of CO2
reduction activities to attain the targets of the Kyoto Protocol, Toyota
Industries inaugurated the Company-wide CO2 Emission Reduction
Conference, a specialized committee in activities to reduce CO2 emissions
with the aim of further bolstering our initiatives in this area. The Business
Division Working Group, set up as a subordinate organization under
the newly established committee, will devise and implement measures

Environmental Management Structure
President

Environmental
Committee

Internal audit
Responsible internal
auditor•Team leader•Supervising auditors•Auditors

Executive
vice
president
Specialized committees

Product Technology
Subcommittee
Chief environmental
administrator
Secretariat(Plant Engineering& Environment Dept.)

Production Environment
Subcommittee

for attaining the respective fiscal year targets for each business divisionand share related information across the Company. This approach
will maximize the effectiveness of environmental activities in vigorously
promoting CO2 reductions.

Environmental Education
Based on its belief that manufacturing starts with nurturing excellent
personnel, Toyota Industries regards human resources development as
one of its most important management issues, and thus actively provides
environmental education programs and carries out enlightenment activities
for its employees. Toyota Industries has clarified the environmentalrelated knowledge and capabilities required for each job position andrank, and accordingly, is building an environmental education program.
Specifically, we offer rank-based environmental education, introductory
courses for environmental management and environmental audits as wellas environmental product education.
Based on the latest environmental trends and effectiveness ofeducation, we intend to review our environmental education programs tocontinuously nurture personnel well-versed in environmental affairs.

Environmental Audits
Toyota Industries implements annual internal environmental audits as well
as external audits carried out by an independent third-party institute. We
utilize the results of these audits in our Company-wide EMS in working
to reduce environmental risk and continually improve environmental
performance. To ensure the independence and high quality of our internal
audits, we have established an internal audit organization in which thesenior managing director, who is appointed by the president as the
person in charge of audits, selects a team leader. The organization is
also comprised of auditors selected from each business division. In fiscal
2009, we conducted the second internal audits since integrating ourCompany-wide EMS, and the average number of citations declined from1.98 to 1.03. This decline underscores the effectiveness of improvement
activities in response to citations and recommendations for improvement
made through previous audits. These recommendations that benefitedmanagement were reported to the president as audit results and thenunderwent a management review*.
The external audit undertaken in fiscal 2009 for integrated ISO 14001
certification recognized improvements in the quality of the content of ourinternal audits. We are now implementing corrective actions and making
further improvements for five cases of minor non-conformance citedduring that audit.
* Management review: To ensure the appropriateness, adequacy and effectiveness of
the Company-wide EMS, the president receives a report on the status of environmental
activities by the Environmental Committee once a year, and then evaluates the need forchanges and improvements and gives directions on measures to be taken.

CO2 Emission
Reduction Conference

TopicsHead Office

Divisions

Corporate Planning

Materials Handling
Equipment

R&D

VehiclePurchasing

EngineQuality Control

Compressor

Human Resources

Opening an Environmental Dojo at the
Takahama Plant
Business
PromotionCouncilElectronics
Logistics

GeneralAdministration

22

Textile Machinery

Environmental conservation
organization by
manufacturing sites

Environmental Risk
Reduction
Subcommittees(environmental risk management overseen
by plant managers)(respective plants)

Toyota Industries Report 2009

Based on the concept of establishing a “place where eachindividual attains a self-awareness of the ideas embodied
in the Global Environmental Commitment,” we opened the“environmental dojo” at the Takahama Plant. The dojo has seven
theme-based areas, including the “global environment,” “energy
conservation,” “eco-product design” and “what I can do” areasand serves as a venue for enabling Toyota Industries’ specificenvironmental
activities to beexperienced
firsthand.

Environmental Initiatives

Business Activities and Their Environmental Impact
As a manufacturer of a wide variety of products, including automobiles,
car air-conditioning compressors, lift trucks and textile machinery, Toyota
Industries strives to understand the environmental impact of our products
across their entire lifecycle from parts procurement through to production
and disposal.
The most notable environmental impacts generated by Toyota
Industries’ operations include global warming caused by the use of energy
and greenhouse gas emissions; resource depletion from the use of raw
materials; the atmospheric impact of using chemical substances; and theimpact of industrial wastewater on public waterways. Toyota Industries issystematically striving to reduce these kinds of environmental impacts.

CO2 Emission Conversion Factors
Conversion factor(energy-derived)

Conversion factor(logistics-derived)

Electricity（＊1）

0.3817kg-CO2/kWh–

City gas2.3576kg-CO2/m3–

LPG

3.0094kg-CO2/kg

3.00kg-CO2/l

Contents

A heavy oil

2.7000kg-CO2/l–

Kerosene

2.5308kg-CO2/l

–

Coke

3.2502kg-CO2/kg–

Gasoline

2.3609kg-CO2/l

2.32kg-CO2/kWh

Light oil

2.6468kg-CO2/l

2.62kg-CO2/kg

LNG

2.790kg-CO2/kg–

Propylene

3.141kg-CO2/kg–*1: The electricity conversion factor in the table is applied to companies in Japan. Overseas companies use
factors publicly announced in each region.

Environmental Impact FlowINPUTOUTPUT◆Energy

R&D/Design*2

Total consumption

6,977TJ

Electricity
City gas
LPG
A heavy oil
Kerosene
Coke
Petroleum coke
Anthracite coal
Gasoline
Light oil
LNG
Propylene

760,931MWh
89,702km3N
1,846t
ｌ
364ｋ
ｌ
244ｋ
4,825ｔ341ｔ
1,026tｌ
520ｋ
ｌ3,666ｋ687t
11t*2: Terajoule is a unit used to measure heat.
1 TJ = 1012 joules◆Into the Air
Greenhouse gas emissions
570,866t-CO2

Procurement

CO2566,250t-CO2
Other greenhouse gases
4,616t-CO2
SOx (Sulfur oxide)
526kg
NOx (Nitrogen oxide)146t
VOC (Volatile organic compound)
1,914t◆Chemical Substances

Production

Emissions (Japan only)

472t

Transfers (Japan only)

183t◆Raw Materials
Raw materials consumption

434,558t

MetalsNon-metals

431,579t
2,978tTransportation/Sales◆WasteWaste generation (Japan only)
113,472t◆Water
Water consumption

4,294km3◆Into Waterways◆Chemical Substances

Usage

26t

PRTR law*3 designated substances(Japan only)
2,589tWastewater discharge (Japan only)
2,676km3*3: Short for Pollutant Release and Transfer Register, the PRTR
law is a scheme whereby businesses measure the releaseand transfer of PRTR-designated pollutants and report theirperformance to the government. The government thencompiles this data and releases it to the public.

Recovery/Recycling◆Packaging Materials
Packaging materials consumption
5,693tWater pollutants (Japan only)◆CO2 from Logistics
CO2 emissions from logistics
operations
57,829t-CO2

Toyota Industries Report 200923

Environmental Initiatives

Targets and Results of the Fourth Environmental Action Plan
Outline of the Fourth Environmental Action Plan

Calculation FormulaAs one of Toyota Industries’ major approaches to the environment,
we devise and implement a five-year Environmental Action Plan. In the
Fourth Environmental Action Plan (fiscal 2007 to fiscal 2011), curbing
global warming, resource utilization, reducing environmental risk factors
and consolidated management are positioned as the key areas of the
Toyota Industries Group’s environmental activities. Target management
is measured by the concept of “eco-efficiency,” which quantifies theeffectiveness of our environmental activities.

Product
Product functions
Environmental impact of products

Eco-efficiency =Production
Production efficiency =Production indicator (Net sales or production volume, etc.)
Environmental impact of production activities
Production efficiency in subject year

Eco-efficiency =Production efficiency in base year

Progress of the Fourth Environmental Action Plan (Product-Related)
Action Policies

FY2009 Achievements

Specific Actions

Automobile-related products: Promote thedevelopment of technologies that achieve thebest fuel-efficiency performance in each country
and region

Develop high-efficiency car air-conditioning
compressors

Developed new continuous variabledisplacement compressors

CurbingGlobalWarming

Non-automobile related products: Promote thedevelopment of technologies that achieve the bestenergy efficiency in the industry

Develop industry-leading, energy-saving
technologies for textile machinery

Implemented baseline assessment for
reducing air-jet loom’s air consumption→ P25

Promote the development of devices for clean
energy vehicles

Further improve the performance of devices
for hybrid vehicles

Developed compact in-vehicle DC-AC inverters

Reduce greenhouse gases throughout products’
lifecycles

Develop products with high eco-efficiency

Developed new electrically driven compressors

Further promote the use of designs that are basedon the Designs for Recycling (DfR) concept

Improve durability of lift trucks

Improved battery life and durability of parts

Promote stricter control of and further reduction in
the use of substances of concern

Establish chemical substances control system

Commenced full implementation of chemical
substances control system

Reduce exhaust emissions to improve air quality inurban areas in all countries and regions

Introduce top-performing, low-emissions lift
trucksComplied with domestic emissions regulations
for lift trucks

Resource Utilization→ P28
Reducing
Environmental
Risk Factors→ P29

Progress of the Fourth Environmental Action Plan (Production-Related)
Action Policies

Curbing Global
Warming

Promote energy
reduction and energy
conservation throughinnovative production
technologies

Specific Actions
Reduce CO2 from energy use•Streamline production processes•Optimize supplied energy•Promote introduction of alternative energy sources→ P26

Resource
Utilization→ P28

Reducing
Environmental
Risk Factors

→ P29

24

Control Items (FY2011 Target)

FY2009 Achievements
Target Result Assess-ment

Non-consolidated
Energy-derived CO2 eco-efficiency: 1.30
(vs FY1991)

1.42

1.40

×

Consolidated
Energy-derived CO2 eco-efficiency: 1.10
(vs FY2004)

1.10

1.07

×

1.02

1.08

○

1.08

○

Reduce CO2
emissions throughgreen logistics•Promote modal shift

Enhance resource
productivity

Resources•Reduce the volume of discarded materials by taking action at
the source, such as improving yields and other measures

Non-consolidated
External disposal eco-efficiency: 1.05
(vs FY2004)

1.06

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

Non-consolidated
Groundwater use: 50% reduction (vs FY2004)(Total volume is indicated in parentheses; unit: km3)

58%
72%
reduction reduction(531) (356)○Reduce total
environmental impactsof waste disposal•Eliminate landfill disposal at all consolidated
manufacturing companies

Manufacturing sites in Japan
Landfill volume: less than 1% (vs FY1999)(Total volume is indicated in parentheses; unit: t)

0.74% 0.22%
(74)
(22)

○

Minimize
environmental risks•Establish environmental risk assessment systems
at the planning stage (incorporate measures toreduce environmental impacts in the businessplanning stage)•Strengthen activities to reduce environmental
abnormalities/claims through reciprocal patrols among
plantsConducted
21 plant
inspections○

Non-consolidated
Environmental impact: 10% reduction(vs FY2004)20%
40%
reduction reduction○

Manufacturing sites in Japan
Environmental impact: 5% reduction(vs FY2004)22%45%
reduction reduction○

Further reduce
emissions of
substances ofconcern

Toyota Industries Report 2009

•Reduce emissions of air pollutants, including
volatile organic compounds (VOCs)•Reduce emissions of water contaminants—

Environmental Initiatives

Curbing Global Warming
Approach to Curbing Global Warming
The year 2008 marked the start of the commitment period to reducegreenhouse gas emissions obligated by the Kyoto Protocol, aninternational framework for curbing global warming, amid the emergenceof various problems worldwide attributed to global warming.
In the international community, the focus of discussion is now shifting
toward the establishment of a framework from 2013, following the endof the commitment period of the Kyoto Protocol, and movements toformulate measures to curb global warming are gaining momentum. As
these developments unfold, CO2 emissions in Japan during fiscal 2008
rose 8.7% over levels for fiscal 1991, the base year for the Kyoto Protocol,
highlighting the need for further emission reduction efforts for Japan toattain its targets.
Toyota Industries has designated the curbing of global warming
as one of its most urgent management tasks to help attain the Kyoto
Protocol targets and to realize a low-carbon society. All companies in
the Group are committed to working together in continuing proactive
initiatives for curbing global warming by developing technologies that takethe environment into account, innovating production technologies forenergy conservation and promoting green logistics.

Inauguration of the Study for
Curbing Global Warming
Products

Toyota Industries’ principal businesses are broadly classified into
the Automobile, Materials Handling Equipment, Logistics and Textile
Machinery businesses. Products developed and manufactured in thesebusinesses, such as vehicles, lift trucks and textile machinery, areused widely throughout the world. At the same time, however, Toyota
Industries’ products either directly or indirectly emit CO2, mainly during
the usage stage. Nonetheless, Toyota Industries foresees difficulties
in achieving further large reductions in CO2 emissions by relying onconventional product development methods.
In view of this situation, in fiscal 2009 we initiated the Study for
Curbing Global Warming, which began to carry out various activities forreevaluating our businesses within the context of an ideal society in the
future. The research findings will be reflected in our Fifth Environmental
Action Plan from fiscal 2012.

Scope of Environmentally Friendly
Product Certification System Expanded to
Cover All Group Products
Products

In December 2006, we introduced our proprietary Environmentally Friendly
Product Certification System, with six products certified so far. Basedon the International Standards Organization (ISO) Type II environmental
labeling standard (ISO 14021), this system comprehensively evaluates
our activities in terms of curbing global warming, resource utilization andreduction in environmental risk.
Under the Type II environmental labeling standard, ISO does not
require independent third-party certification (only self-declaration by theenterprise). To create an even more reliable program, however, Toyota
Industries has its self-assessment confirmed by an independent third
party. In recognition of this decision, in fiscal 2008 Toyota Industries
received the Eco-Efficiency Award 2007*1 from the Japan Forum on
Eco-Efficiency.
To step up the promotion of environmentally friendly products, infiscal 2009 we modified stipulations and expanded the system’s scopeof coverage to all Group products. In April 2009, the BT Lifter hand pallettruck, one of the Materials Handling Equipment Business’s warehousetrucks, became the first environmentally friendly product certified underthe expanded scope of coverage. The BT Lifter is more compact andlighter than previous models and has a 1.9 CO2 factor*2 during the
product lifecycle.
*1: This is a program for recognizing the activities of companies making continuous efforts toenhance socio-economic activities while reducing the environmental load.
*2: CO2 factor: Ratio that quantitatively assesses how much a newly developed product’s
eco-efficiency has improved compared with that of the base product with regards toreducing CO2 emissions during its lifecycle

CO2 factor

1.9

Products
10SR Series of Rotary Valve
Compressors Contribute to the Curbing of
Global Warming
Toyota Industries’ 10SR series of rotary valve compressors has attained
a large reduction in power consumption by utilizing a rotary valve in theintake mechanism. Integrating an oil-separating function allows a one-rank
reduction in compressor capacity while also realizing more compact andlightweight compressors. This technology is making major contributions
to enhancing vehicle fuel efficiency and reducing CO2 emissions.

Certificate of Environmentally
Friendly Product

BT Lifter LHM230

Topics10SR Series of Rotary Valve
Compressors Earn the Bronze Prize for
the Aichi Environmental Awards

10SR series of rotary valve
compressors

Toyota Industries earned the Bronze Prize for the Aichi
Environmental Awards for its 10SR series of rotary valve
compressors. The award waspresented in recognition of Toyota
Industries’ contributions to reducing
the environmental load fromvehicles by developing and massproducing compact, lightweight car
air-conditioning compressors that
consume little power and raise the fuelefficiency of vehicles.

Toyota Industries Report 200925

Environmental Initiatives

Curbing Global Warming
Reducing Energy Usage to Curb
CO Emissions

Reducing CO2 Emissions fromTransportation

To combat global warming, Toyota Industries focuses on realizing energy
reductions and conservation via innovations in production technology andpromoting measures to curb global warming in its Fourth Environmental
Action Plan.
In fiscal 2009, Toyota Industries carried out activities on a nonconsolidated and consolidated basis aimed at attaining targets equivalent
to or higher than those in the Fourth Environmental Action Plan.
On a non-consolidated basis, Toyota Industries set the target of
raising eco-efficiency 42% over fiscal 1991 levels. Specific measures
toward achieving this objective included increasing energy efficiency
through the electrification of heat sources for air conditioning at the Kariya
Plant and effectively utilizing steam from cogeneration at the Obu Plant.
On a consolidated basis, Toyota Industries established the targetof raising eco-efficiency 10% over fiscal 2004 levels and promoted
such initiatives as implementing measures against air leakages at all
consolidated companies and conducting energy audits.
With the across-the-board collaboration of departments that manage
the supply of energy and production sites that use this energy, Toyota
Industries continued to implement proactive initiatives that led to a
40,000-ton reduction in CO2 emissions on a non-consolidated basis infiscal 2009.
Nevertheless, although we attained a 40% improvement in ecoefficiency on a non-consolidated basis over fiscal 1991 levels and a 7%
improvement on a consolidated basis over fiscal 2004 levels, these figures
fell short of the targets set for fiscal 2009 due to the rapid deterioration of
the business environment. In working to attain even higher targets in the
future, Toyota Industries will focus on promoting energy reductions andconservation measures.

Reducing CO2 emissions during product shipping and all other phasesof logistics is also another crucial issue. Toyota Industries is currently
collaborating with transportation operators to reduce CO2 emissions
during the logistics process.
In fiscal 2009, we carried out activities aimed at improving ecoefficiency by 2% over fiscal 2007 levels on a non-consolidated basis bypromoting measures such as expanding the rail transport of completed
lift trucks in the Materials Handling Equipment Business and improving
transportation routes in the Logistics Business. As a result, we
dramatically exceeded our target to achieve an 8% improvement overfiscal 2007 levels.

Production
2

Production

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

Subsidiaries
in Japan

Overseas subsidiaries

Eco-efficiency(non-consolidated)

Eco-efficiency(consolidated)

Target (non-consolidated)
Target (consolidated)

Total emissions(kt)

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

Eco-efficiency
Good

1.34

1.36

1.42 1.6
1.40
1.4

1.23

1.25

1.2
1.10
1.07 1.0

680

700

745

06

07

08

1.22
1.00

1.01
1.00

800

589

600
400
200
Good 0

1.06

566

273

(FY) 91

04

09

Topics26

Building a Model Production Line that
Utilizes Energy-Saving Devices for
Reducing CO2 Emissions

Case Example of an Improvement at a Model LineFor many years, the Car Air-Conditioning Compressor Business has
adopted a variety of approaches to promote energy conservation at
its production lines. Determined to further strengthen initiatives for
reducing CO2, in fiscal 2009 we once again selected a model linefrom among the production lines for car air-conditioning compressors
at the Kariya Plant and implemented various reduction measures.
Looking at a breakdown of CO2 emission sources at car airconditioning compressor production lines, electricity and compressed
air account for the greatest proportion of CO2 emissions. With this inmind, we are striving to reduce CO2 emissions based on two themes.
Specifically, we will aim for “just in size” by reducing the use of power
required for production to an absolute minimum while eliminating
waste. We will also aim for “zero compressed air” by eliminating its
use. Compressed air causes large losses from the air-generation to
usage stage as a result of
Breakdown of CO2 Emissions atelectric conversion losses
Car Air-Conditioning Compressor
and leaks inside pipes. In
Production Lines
adhering to these themes,
we are identifying what needs
Othersto be done to yield significant
22％
results through partial
Facilities
modifications to facilities(electricity)
Facilities (air)55％
based on the assumption
23％
that these measures will be
deployed across the Group.

Toyota Industries significantly improved the drying process for finishedproducts by shifting to using low-pressure air blowers to dispel
cleaning water instead of high-pressure air. Since using an air nozzle
with the same radius as that for the high-pressure method would notdeliver sufficient force to dispel the cleaning water, we expanded theradius of the air nozzle while increasing the flow volume of the lowpressure air to attain the same effect.
By adopting this method, we have achieved a 35-ton, or 76%,
reduction in CO2 emissions. In tandem, we are carrying out in-housemanufacturing of blowers, which utilize the existing technologiesof the Car Air-Conditioning Compressor Business, thereby yielding
dramatic cost benefits.

Toyota Industries Report 2009

Improving the Drying Process for Finished
Products

CO2 Emissions(t/year)
50

46

25

11
0

BeforeAfter
improvement improvement

Internally manufactured blower(Under development)

Topics

Hazu Academy Global Learning Center
Preserves the Surrounding Rich NaturalLandscape and Protects the Environment
The Hazu Academy, a global learning center opened in May 2009 in
Hazu, Aichi Prefecture, adopts numerous environmentally conscious
measures, including the use of natural energy and rooftop greenery to
curb global warming.

• Solar Power Generation
CO2 emission reduction effect (approximate calculation):
66.8t-CO2/year
Solar cells are installed on the rooftops of the main building andthe outside parking lot and are linked to the center’s electric power
facilities. Surplus power is then sold to electric power companies.

Solar panels• Wind Power Generation

Exterior concept image of the Hazu Academy global learning center• Preserving the Surrounding Landscape
The Hazu Academy makes use of innovative schemes and concepts
in all areas for “creating, protecting and cultivating a rich landscape.”
For example, to maintain the natural topography of the grounds,
which straddle the coastline, the center’s building features asectional configuration to diminish any sense of encroachment into
the surrounding areas. Additionally, extensive efforts were made to
maximize the protection of existing green spaces throughout theentire premises while aiming for harmony with the surrounding naturalenvironment via a well-balanced blending of existing and new green
areas.
As another noteworthy feature, the center’s walkways andparking lot are made from recycled concrete blocks spaced at regularintervals, with the spaces in between the blocks filled with a paving
material that promotes grass growth. This innovative scheme helps
to mitigate rises in summer temperatures of regular road and othersurfaces and increases green spaces.

CO2 emission reduction effect (approximate calculation):
0.05t-CO2/year
Five vertical-axis wind turbines, which
can operate regardless of wind direction,
have been installed at the center. Theseturbines are also ideal for harmonizing
with the surrounding area because theyrotate more quietly and are less subject tobird strikes than propeller-type turbines.

Wind-power unit

• Rooftop Greenery
CO2 emission reduction effect (approximate calculation):
0.4t-CO2/year
By greening part of the rooftop, we are reducing the heat load fromthe center’s roof.

Rooftop greenery• Optical Ducts
Green blocks

CO2 emission reduction effect (approximate calculation):
0.2t-CO2/year
Capturing sunlight with optical ducts forinternal illumination contributes to energy
savings during the daytime.

Optical duct

Toyota Industries Report 200927

Environmental Initiatives

Resource Utilization
Approach to Resource Utilization

Products
Promoting Resource Savings
through Miniaturization and Reduced Weights
By reducing materials used, in fiscal
2009 Toyota Industries achieved an
approximately 36% reduction in cubic
volume and a roughly 33% weight
reduction for its 100W DC-AC inverter,
which is certified as an environmentallyfriendly product. Moreover, recycled
aluminum was used as the primary
covering material for the inverter.

Building a System for Resource
Utilization by Sharing Information among
Business Divisions
Production

To achieve efficient use of finite resources, Toyota Industries promotes
design and development that implements the 3Rs: reduce materials
used by using them more efficiently, reuse products and parts that havecompleted their service life and recycle resources.
We also aim to improve resource efficiency and reduce waste
generation at the source through such measures as increasing yields atevery manufacturing process, while also promoting in-house reuse andrecycling.

Toyota Industries’ Compressor Division examined the possibility of reusing
protective materials (PVC sheets) from inbound deliveries of components,
which it previously discarded, in other business divisions. It was found that
the Textile Machinery Division could reuse these materials as cushioning
materials for auxiliary parts shipped externally.
Accordingly, we set up a dedicated collection box for gathering suchmaterials from the Compressor Division for use by the Textile Machinery
Division. The introduction of this recycling system has led to the complete
elimination of discarded protective materials.
We will continue to promote information sharing through active
interchanges among business divisions and will implement measures thatallow us to utilize resources while eliminating waste.

Production

100W DC-AC inverter

Reduction in Water Consumption

Giving strong consideration to the risks of ground sinkage and effective
use of limited resources, Toyota Industries places particular emphasis on
efforts to curtail the use of groundwater. In fiscal 2009, we achieved ourtarget by realizing a 20% reduction in the use of groundwater comparedwith the previous fiscal year by taking such steps as recycling wastewaterand recovering and reusing steam drainage.

Comparison of Cubic Volume and Weight
Total Water Consumption

Previous products set at a value of 1

1

GroundwaterIndustrial water
Target (Groundwater use)

Approximately 36% reduction Approximately 33% reduction

Public water supply

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

Cubic volume

WeightWater consumption (km3)

4,000

Good

3,028

0
Developed Toyota Industries’
product previous products

Developed Toyota Industries’
product previous products

3,166

3,197
2,534

2,000

1,267
0
Good

Production

3,186

(FY)

04

1,189
06

1,029
07

714
08

531

356

09

Curbing of Waste Generation at

the Source
In fiscal 2009, we carried out production activities targeting a 6% increase ineco-efficiency over fiscal 2004 levels. The Obu Plant switched chemicals
for treating wastewater to reduce the volume of sludge generated. In
addition, we implemented measures to raise the yields of presses at the
Takahama Plant. These initiatives enabled us to attain our target, as we
achieved an 8% improvement in eco-efficiency over fiscal 2004 levels. We
will continue to promote improvement activities with the aim of attaining abalance between operational efficiency and resource efficiency.

Waste Generated
Waste moved offsite

Eco-efficiency

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

Waste amount
(kt)

0.98

1.02

110

112

1.00

120

1.12

Eco-efficiency

Good

1.08

1.06

109

111

1.2
1.0

TopicsRainwater Capture System
To make more effective use of water resources, Toyota Industries
has installed a rainwater capture system at the Higashiura
Plant and the Takahama Plant’s TMHG Technical Center. The
system also has been adopted overseas at TD Deutsche
Klimakompressor GmbH (TDDK), our car air-conditioning
compressor manufacturingbase in Germany. At TDDK,
rainwater collected on theroof of the building is stored
in an underground tank andused for washers and othermachines.

0.8

81

80

Cleaning water

40
Boiler
Good

28

0

(FY)

04

Toyota Industries Report 2009

06

07

08

09

Underground rainwater storage tank

Environmental Initiatives

Reduction in Environmental Risk
Approach to Environmental Risks
Toyota Industries recognizes that the prevention of environmental risks,such as environmental pollution and violations of environmental laws
resulting from its business activities, is a crucial corporate responsibility.
Based on this awareness, in developing products, Toyota Industries
works to strengthen the management of chemical substances and reduceamounts of chemicals used, focusing on the entire product lifecycle, fromdevelopment and production to disposal and collection.
In conducting operations, top priority is placed on preventing
risk during the production process, and emergency training drills are
implemented to ensure quick response to any possible contingencies.

Environmental Impact Index
Consolidated (index)

Non-consolidated (index)(index)

Non-consolidated target (index)

Consolidated target (index)

140
120

100

100
80

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

83.6

68.2

78.8

74.1
55.0

60
40
20

Products

Management of Substances ofGood 0

(FY)

04

06

07

08

09

Concern
To strengthen the management of chemical substances in accordancewith the European REACH*1 regulation, Toyota Industries has completely
rebuilt the MARSY*2 system to ensure the integrated management ofconstituent materials as well as chemical substances contained in all our
products. By revamping this system, we have dramatically strengthened
the system’s functions and handling capabilities.
Under this system, we are now able to tabulate the amounts ofchemical substances contained as well as identify components that use
chemical substances on a cross-divisional, Group-wide basis.
*1: REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) is a system
for the comprehensive registration, evaluation, authorization and restriction of substancesof concern within the EU, and targets parties involved in the manufacture and import ofsubstances of concern.
*2: MARSY stands for Material-Data Research System.

Production Risk Assessment Program Basedon a Quantified Environmental Impact Index
As articulated in the Fourth Environmental Action Plan, Toyota Industries’
action policies for the reduction of environmental risks in production
are to “minimize environmental risks” and “further reduce emissions of
substances of concern.” As it undertakes its activities, Toyota Industries
implements its own quantified management index to properly calculate
environmental impacts*3.
Toyota Industries has already achieved fiscal 2011 targets containedin the Fourth Environmental Action Plan and has set even higher targets
as we proactively carry out our business activities. For fiscal 2009, wetargeted a 20% reduction in environmental impact on a non-consolidated
basis and a 22% reduction on a consolidated basis (manufacturing
companies in Japan) compared with fiscal 2004 levels. To attain thesetargets, we promoted reduction activities focused mainly on coatingprocesses, which use large amounts of substances of concern. As
specific measures, for the piston coating process, the Compressor
Division promoted a switchover from conventional spray coating to rollcoating, which has better coating adhesion efficiency. In fiscal 2009, wecompleted the switchover at approximately 90% of the coating lines.
Toyota Material Handling Japan and the Vehicle Division also proceededwith a switchover to coatings and thinners containing smaller amounts ofsubstances of concern. As a result of these activities, Toyota Industries
attained a 40% reduction in environmental impact on a non-consolidated
basis and 45% reduction for consolidated operations. The entire Toyota
Industries Group is committed to continuing to achieve further reductions
in emissions of substances of concern.
*3: Environmental impact
In fiscal 2007, we introduced a quantified environmental impact index for the integrated
management of environmental impacts to properly manage different substances ofconcern with environmental and water pollutant properties as well as clarify priority.
<Substances covered by calculations for environmental impact index>• Hydro-fluorocarbon (HFC) and Pollutant Release and Transfer Register (PRTR) lawdesignated substances emission volumes (volatile organic compound (VOC) derived)• Water contaminants (biochemical oxygen demand (BOD), chemical oxygen demand(COD), nitrogen, phosphorous)

Production

Legal ComplianceToyota Industries continually undertakes activities to prevent quality
abnormalities in wastewater, abnormal concentrations of soot and otherrisks occurring in the production process. In fiscal 2009, the chairmanof the Production Environment Subcommittee (executive vice president
in charge of overseeing production) and plant managers inspected
manufacturing plants to make onsite confirmations of the status ofrisk management at each phaseof production. Risk management
methods at each plant are shared
at all Toyota Industries’ plants andutilized to manage risk and prevent
abnormalities.
As part of measures toInspecting the Nagakusa Plant
manage quality of wastewater
discharged from production
processes, we monitored tendencies when using varied amounts ofchemicals during each process to ascertain any changes that would lead
to abnormalities at facilities.
In fiscal 2009, both in Japan and overseas, no infringements ofenvironmental legal standards were committed and Toyota Industries was
not subject to any fines or penalties. Also, no environment-related legal
action was taken against Toyota Industries.

Production Soil and Groundwater Pollution
Countermeasures (Status Report)
Toyota Industries carries out surveys and purification of soil andgroundwater contaminated from its past use of trichloroethylene asa cleaning agent. We 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 as from grease and oils, wehave drilled observation wells at all plants to conduct regular checks.

Trichloroethylene Readings (FY2009)
Plant

Weighted Average Concentrationin Groundwater (mg/l)

Current Status

Kariya Plant

0.67

Cleanup in progress

Kyowa Plant

0.72

Cleanup in progress

Toyota Industries Report 200929

Environmental Initiatives

Environmental Communication
Promoting Internal and External
Environmental Communication

TMHU Hosts Tree Planting Events for TMHU
and TIEM Employees and Their Families

The Toyota Industries Group promotes environmental activities closely
linked with society. Placing an emphasis on communicating ourenvironmental activities to the Toyota Industries Groups’ stakeholders,
we strive to disclose a broad array of information to the general publicthrough such means as the Toyota Industries Report, our Website andexhibits. At the same time, we are undertaking concerted efforts tointeract with local communities, holding community roundtables andproviding environmental education programs for local elementary school
students.
Within the Company, we utilize the Environment Section of ourIntranet to communicate and share pertinent information and holdenvironmental lectures for employees, while our monthly in-housemagazine publishes articles on environmental issues to foster greater
environmental awarenessamong our employees
and their families.
We also held
an Environmental
Liaison Conference,
which brings together
personnel responsible forenvironmental programs
at each Group company.
To further deepen
environmental
communications bothwithin the Group andexternally, we willcontinue to focus on
sharing important
Environment information available via Website
environmental(http://www.toyota-industries.com/csr/)
information.

In May 2008, Toyota Material Handling, U.S.A., Inc. (TMHU), a Toyota
Industries Group subsidiary for selling lift trucks, hosted Columbus
Volunteer Tree Planting events at two parks in Columbus, Indiana. In
cooperation with staff in charge of managing green areas in Columbus, 50
trees such as black cherry trees donated by Toyota Industrial Equipment
Mfg., Inc. (TIEM), a subsidiary for manufacturing lift trucks, were planted
at each of the two venues.
Held to enhance green areas in the local community, the events wereattended by numerous TMHU and TIEM employees and their families, andcontributed to raising the environmental awareness of all participants.

Planting trees during Columbus Volunteer Tree
Planting event

Columbus Volunteer Tree Planting
signboardBCSWMD Awards TIEM with a Certificate ofAppreciation
TIEM has been sponsoring an Earth Day recycling event hosted by the
Bartholomew County Solid Waste
Management District (BCSWMD)
since fiscal 2008. In April 2008, a
BCSWMD commissioner awarded
TIEM a certificate of appreciation for
its ongoing support of the recycling
center and its various programs.
Award ceremony

Participating in Eco-Products Exhibition
In December 2008, we exhibited our products at Eco-Products 2008,
held at Tokyo Big Sight, to communicate our environmental initiatives.
Along with presenting environmental technologies by showcasing Toyota
Industries’ hybrid vehicle components, car air-conditioning compressors
and a tugcart (automatic guided vehicle system), an entertaining, easyto-understand visual presentation introduced our environmental activities.
A broad range of people ranging from elementary and junior high school
students to various companies and the general public visited our booth.
We also displayed structural models of car air-conditioning compressors,
representative of Toyota Industries’ long-time dedication to technologicalinnovation. These models attracted a great deal of attention, effectively
enabling visitors to see firsthand how car air-conditioning compressors
have evolved over the years.

Unica Sets Up Environmental Activities
Bulletin Board for Customers and Employees
In April 2008, Unica Co., Ltd. (Unica), a manufacturer of electric
in-house transporters for the Toyota Industries Group, set up anenvironmental activities bulletin board to promote their initiatives tocustomers visiting their office and employees. Through the bulletinboard, Unica strives to raise employees’ environmental awareness andincrease understanding of Unica’s environmental activities both within
the company and externally.

Visiting customers looking at environmental activities bulletin board

Toyota Industries booth30

Toyota Industries Report 2009Entertaining visual presentation to introduce
Toyota Industries’ environmental initiatives

Environmental Initiatives

Environmental Accounting/On-Site Verification
Environmental Accounting

and manufacturing bases cooperated to implement vigorous energy
conservation initiatives, which culminated in the reduction of roughly
40,000 tons in CO2 emissions on a non-consolidated basis alone.

Toyota Industries regards environmental accounting, which evaluates
the effectiveness of its environmental activities from the perspective ofcost, as a critical tool not only for corporate management but also for thedisclosure of quantitative information about the environment. As such, weare continually striving to further enhance our environmental accounting
systems. Environmental accounting data is collected in compliance with
the Ministry of the Environment’s Environmental Accounting Guidelines
2005 Edition.

Economic Benefits of Environmental Conservation
Initiatives
Toyota Industries calculates the actual economic benefits of environmental
conservation initiatives through calculable benefits, including reductions inenergy costs and wastewater treatment costs, as well as profits from thesale of recycled waste products.

Scope of data collection: Toyota Industries, TIBC Corporation
Data collection period: April 1, 2008 – March 31, 2009

On-Site Verification
Up until fiscal 2008, we had asked an external institution for an
independent verification of the accuracy and consistency of environmental
data included in the Toyota Industries Report. In fiscal 2009, however,Toyota Industries’ Plant Engineering & Environment Department primarily
conducted on-site verification by utilizing accumulated know-how.

Fiscal 2009 Results
Environmental Conservation Costs*

1

The total cost of environmental conservation programs in fiscal 2009was ¥9.4 billion. Global environmental conservation costs primarily
included the introduction of a solar power generating system, wind power
generating system and optical duct system at the Hazu Academy, a global
learning center, in Hazu, Aichi Prefecture.
Research and development costs included the development of
the following products: a diesel engine hybrid lift truck, which reduces
the CO2 emissions and fuel consumption by approximately 50% while
maintaining the same level of performance as the current diesel engine lift
truck, as well as the ES14 electric compressor developed specifically forthe latest Prius that is roughly 20% smaller and lighter than the previous
compressor.

[On-site Verification Sites]
Nagakusa Plant: Manufacture of automobiles
Nishina Industrial Co., Ltd.: Manufacture and sales of devices for industrial
vehicles and construction machinery[Items to be Verified]
1. Adequacy of the scope of data collection; validity of data measurement,collection and calculation methods; validity of internal verification
2. Trustworthiness and accuracy of collected/calculated data as well as
data reported to the Head Office; accuracy of reporting method to the
Head Office*1: Depreciation expenses are not included in environmental conservation costs. Costs andinvestments that include objectives other than environmental aspects either have thedifference aggregated or the component removed.

Environmental Conservation Benefits[Results]

The benefits of environmental conservation indicate the accumulated
outcomes of yearly environmental conservation measures.
In fiscal 2009, CO2 emissions were reduced by a total of 72,000
tons. As a major achievement, the Energy Supply Control Section

1. The verified sites retained original data (evidence) for all statistics,
which were confirmed valid.
2. All discrepancies identified during verification have been corrected.

Environmental Conservation Costs
Category

Businessarea costs

Pollution prevention costs-Preventing air pollution-Preventing water pollution
Global environmental
conservation costs
Resource utilization costs

Upstream/downstream costs(Millions of yen)

FY2009Investment Expenses
1,014

1,074

753

Achievements
72,000t decrease

VOC

538t decrease

Generation of waste products

24,982t decrease

1,075

3,665

934

3,055

123

1,545

225

1,718

SOX

–

–

–

25

NOX

34t decrease

COD

5.6kg decrease

109

1,068

48

906

–

393

–

909

Social contribution activity costs

7

30

8

14

Environmental remediation costs

–

9

1

20

1,644

7,724

2,290

7,400

Total

Environmental Impact
CO2

330

Research and development costs

Management costs

Environmental Conservation Benefits

FY2008Investment Expenses

9,368

9,690

901,000m3 decrease

Water

0.1t decrease

Economic Benefits of Environmental(Millions of yen)
Conservation Initiatives
Item

Details

AmountRevenue

Returns from sale of recycled waste
products

5,635

Cost
Reduction*2

Energy cost reductions

2,591

Total

Cost reduction by resource savings(including reductions in amount ofwater use and amount of wastewater)

94

8,320

*2: Cost reduction is calculated by multiplying the volume of reduction inenvironmental impacts by the unit cost.

Toyota Industries Report 200931

Corporate Social Responsibility

Corporate Governance

Aiming for Sound and Efficient Management
to Maintain the Trust of Society
Governance Structure

Basic Perspective of Corporate Governance

Board of Directors meetings, in addition to deliberating on responses to abroad range of management issues. In addition to delegating significant
authority to each business division under the divisional organization
system, we have established the Business Operation Committee to enable
the president to meet with heads of each business division regularly tomonitor and follow the status of execution of the business policies in eachdivision. At meetings of the Management Council, which are held after
Board of Directors meetings, directors, managing officers and corporate
auditors convene to share management information with regards tomatters resolved at respective Board of Directors meetings as well as
the monthly status of the operations of each business. Furthermore,
specialized committees are set up to discuss and follow through on suchthemes as compliance, quality, safety, the environment, human resources,
export transaction controls and information disclosure.

Toyota Industries believes that it is of utmost importance to enhance
the long-term stability of corporate value and maintain society’s trust byimplementing the Basic Philosophy of “Respect for the Law,” “Respect for
Others,” “Respect for the Natural Environment,” “Respect for Customers”
and “Respect for Employees,” and earnestly fulfilling our corporate social
responsibilities. Together with contributing to the enrichment of society
through our business activities, we also believe it is important to build anamicable relationship with all stakeholders, starting from shareholders andcustomers to business partners, local communities and employees. Acting
on this conviction, we are striving to maintain and enhance management
efficiency and the fairness and transparency of our corporate activities bybuilding a corporate governance structure that can respond quickly andflexibly to changes in the business environment. At the same time, we arebolstering management supervision and emphasizing the timely disclosureof accurate information as part of efforts to upgrade our corporate
governance.

Corporate Auditor System
Toyota Industries has adopted a corporate auditor/board of corporate
auditors system. Two standing corporate auditors and three external
corporate auditors attend meetings of the Board of Directors to monitor
the execution of duties by directors. Meetings of the Board of Corporate
Auditors are held once a month to discuss and make decisions on suchimportant matters as auditing policy. The standing corporate auditors
collect management information by attending primary meetings including
those of the Management Committee and receiving reports directlyfrom directors. This also enables the standing corporate auditors tomonitor the execution of duties by directors. Additionally, the Corporate
Auditor’s Office has been established with a staff of dedicated personnel

Implementation Structure
Toyota Industries convenes monthly Board of Directors meetings to
discuss and resolve important management matters and monitor the
execution of the duties by directors. Important matters such as corporate
vision, management policies, medium-term business strategies and major
investments are discussed at meetings of the Management Committee
composed of directors above the executive vice president level, corporate
auditors and other relevant directors. The committee thoroughly discusses
a variety of matters before such matters are passed on for debate at

Shareholders’ Meetings
Appointment/
Dismissal

Appointment/
Dismissal

ReportingAppointment/
Dismissal

Reporting

Cooperation

Independent
Auditors

Board of Corporate Auditors
Monitoring

Board of Directors

ReportingAccounting
Audit

Monitoring Monitoring
Appointment/
Monitoring

Corporate Auditor’s Office

ReportingDiscussion/
ReportingPresident
Directives
Directives

Management
Committee

Management
CouncilBusiness Operation
Committee(Deliberates on important mattersfrom management’s perspective)(Reports on execution ofbusiness operations)(Follows up on the execution ofbusiness operations)

Directives

Discussion/
ReportingDirectives

Reporting(monthly)

Committees*1

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

Audit Dept.
Internal
Audit

Policies
ReportingCommittees*1
Emergency Profit
Improvement Committee

ReportingDirectives
Reporting

Reporting

CSR Committee*2
Environmental Committee

ReportingExport Transaction
Control Committee
Stock Option Committee
etc.
*2 Name changed from Corporate Code of Conduct Committee to CSR Committee from June 19, 2009

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 thepresident. Under the Emergency Profit Improvement Committee, we have set up 14 different subcommittees, such as the General Expenses Subcommittee, and are actively working on profit
improvement activities throughout the Company.
To the present, together with management and all employees, we have focused on thoroughly implementing cost reduction activities. We will also enhance planning and the executionof measures to increase sales and income.

32

Toyota Industries Report 2009

who are independent from the chain of command of directors to assist
in the auditing tasks of corporate auditors and reinforce the auditingof duties carried out by the directors. The corporate auditors also
exchange opinions and cooperate with independent auditors and the
Audit Department to ensure the legality, soundness and efficiency ofmanagement.

Timing of Meetings

Timely Disclosure

Upon submission of the securities report (June)
Upon submission of the quarterly financial reports (August,November, February)
Upon submission of the financial summary (July, October,
January, April)
Convened when necessary in cases where important mattersmust be determined or arise

Board of Directors
ReportingPresident

Timely Information Disclosure
Toyota Industries has established the Information Disclosure Committee
to provide all stakeholders with important corporate information, even
if the information is unfavorable, to ensure management transparency
and accountability. The committee discusses and determines thecomprehensiveness and appropriateness of timely disclosure of
information in such documents as the securities report.

Board of Corporate Auditors/Corporate Auditors

Reporting

ReportingInformation Disclosure Committee
Information Disclosure Committee Secretariat
Important information to be disclosed

Business Divisions/In-House Company/Departments

Internal Control System
In accordance with the Corporate Law, in May 2006 Toyota Industries’
Board of Directors adopted the Basic Policies for the Establishment of anInternal Control System to ensure compliance, risk management as wellas the effectiveness and efficiency of business operations. Furthermore,
based on the Financial Instruments and Exchange Law, we are building,operating and evaluating a system to maintain the reliability of financial
reporting, while assessing the effectiveness of our internal controls andundergoing audits by independent auditors.

Compliance Implementation Structure

Corporate Ethics Hotline
As one channel for employee consultation on compliance-related
matters, we established the corporate ethics hotline staffed by outside
lawyers. By strictly protecting employee privacy to ensure they are notplaced in a disadvantageous position, we are building a structure thatenables employees to rest assured when seeking advice on a variety ofcompliance-related matters. As part of a structure capable of properly
responding to compliance matters, we have also set up various typesof consultation desks to address opinions and requests of customers
and local residents as well as to respond to an array of concerns andquestions from employees and their families.

Basic Perspective
Toyota Industries believes that compliance transcends the mere
adherence to laws and regulations and also encompasses practicing
corporate ethics and respecting local cultures and customs in a mannerthat is in step with the changing times. We believe each and every
employee must behave fairly and sincerely with a high law-abiding spirit
and an acute sense of ethics.

Implementation Structure
Based on the Basic Policies for the Establishment of an Internal Control
System, we are putting in place a compliance implementation structure.
We have designated the Legal Department at the Head Office and 10
other departments as departments in charge of legal compliance, whichkeep abreast of the enactment and amendment of laws and regulations,engage in activities to familiarize employees with compliance mattersthrough education and the Intranet as well as monitor and provide
guidance on compliance. The progress of such activities is reported atmeetings of the Corporate Code of Conduct Committee, which are held
twice a year and attended by the president, directors, managing officers
and corporate auditors. If deemed necessary, further measures are
discussed and decided to reinforce these activities.
Furthermore, we have compiled specific conduct guidelines in the
Handbook for Corporate and Employee Conduct (first edition issued in
1998, revised in 2006) and require all employees to engage in soundconduct. The handbook focuses closely on laws and corporate ethics andclearly describes acceptable and unacceptable behavior. We continuously
strive to promote a deeper penetration of these guidelines via educationand training as well as distribution of a portable handbook. The Group
companies outside Japan have also compiled conduct guidelines inaccordance with their respective countries’ laws and practices to familiarize
their employees with these guidelines through education and training. We
also conduct legal education based on career path and position.

Risk Management

Basic Perspective
Based on the Basic Policies for the Establishment of an Internal Control
System, we are establishing regulations and systems regarding risk
management that may entail any losses or damages. When a risk ora danger of a risk becomes evident, we classify it as either a problem
or a crisis judging by potential losses on business operations and themagnitude of social impact. We are putting in place a quick and precise
initial-response system that will enable us to solve a problem at an earlystage in which its impact is relatively small and to prevent such problems
from developing into a crisis.

Implementation Structure
Risks related to quality, safety, the environment, human resources andexport transaction controls are discussed by the respective committees.
If deemed necessary, we make new rules and manuals, familiarize
employees with them and monitor operations to minimize risks. The
Corporate Code of Conduct Committee makes decisions regarding
policies and has established a prevention system for risks regarding
compliance, earthquake responses and information security. As an
example, we have compiled the Rules in Case of Earthquakes (first edition
issued in March 2003, revised in October 2007) and distributed thehandbook to all employees. We require them to carry this handbook at all
times to facilitate precise action and response in the event an earthquake
occurs.

Toyota Industries Report 200933

Corporate Social Responsibility

Responsibility to Our Customers

Aiming for Further Quality Improvement with Customer-First Principle
Quality a Key Management Issue
Carrying on the spirit of the teachings of Toyota Industries’ founder Sakichi
Toyoda that “A product should never be sold unless it has been carefully
manufactured and has been tested thoroughly and satisfactorily,” Toyota
Industries believes quality is its lifeline and a key management issue.
Maintaining and improving quality is our most important responsibility to
our customers and forms the basis of our corporate social responsibilities.
Toyota Industries encourages all employees to be an active partof its efforts to maintain and improve quality in all areas of its corporate
activities, most notably “product quality,” “marketing quality” and “total
quality.” “Product quality” is embodied in the durability, safety and ecofriendliness of our products, “marketing quality” in excellent sales andservice and “total quality” in our overall corporate image and brandstrength.

Types of Quality Sought by Toyota Industries

Quality levels that
customers truly expect

Total
quality● Eco-friendliness●Durability ● Safety● Sales●Workmanship ● Service● Brandstrength● Corporate
image, etc.

Product quality
Brand identity

Quality Assurance Systems
Based on the stance of “customer first,” Toyota Industries develops andprovides products from the customer’s viewpoint.
Whenever any of Toyota Industries’ business divisions develops a new
product, a design review (DR) system is utilized to evaluate quality at allstages from product planning and development to production preparation,
production and customer satisfaction assessment. This ensures that theprocess of product development progresses to the next stage only whena division head thoroughly checks to confirm that established quality
target levels have been achieved. Once customer information reaches thequality assurance departments of each business division after the productlaunch, it is fed back to the responsible department (such as design andmanufacturing) to quickly devise countermeasures. At the same time,
the DR system is reviewed as necessary to prevent the recurrence of any
problems in subsequent models.

34

Toyota Industries Report 2009

We constantly strive to deliver products that satisfy customers. To thisend, we always listen to customer voices and pour our efforts into R&D on
new products and new functions that anticipate the needs of the times.
As an example, in its efforts to ensure that customers can use
our products in an excellent condition without any inconveniences,
the Materials Handling Equipment Business provides services not only
through distributors and dealers but also by directly interfacing withcustomers through customer consultation desks and visiting customers to
conduct actual usage fact-finding surveys.
Comments and requests received from customers in this way arepromptly fed back to the relevant department, such as design, and a
response is subsequently provided to the customer through dealers. At
the same time, we make good use of these comments and requests in
product improvements and new product development.
We procure parts from our entire global supply chain, including
affiliates and business partners all over the world, while supplying
products to the global market. We engage in quality assurance activities
by sharing our customer-first stance throughout the supply chain.

Distributing Quality Guidelines

Marketingquality

Manufacturing
quality
Designquality

Improving Quality throughout the Global
Supply Chain

Every year, we issue the Quality Guidelines that identifies importantquality improvements to all manufacturing bases in and outside ofJapan. Respective business divisions hold Quality Functional Committee
meetings attended by management to confirm the implementation of theguidelines and follow through via on-site inspections.
In order to meet customer expectations, in fiscal 2010 we are goingback to the basics of our customer-first activities and identifying eachbusiness division’s and department’s shortcomings, further enhancing our
DR evaluation system and reviewing prerequisites for manufacturing nondefective products.
Toyota Industries is committed to improving the degree of customer
satisfaction. In attaining this objective, predetermined procedures
are carried out in all processes according to instructions to ensure
no defective products are sent to post-processes, thereby achieving
manufacturing through self-conclusion of the process that guarantees
zero defects. We are implementing this practice at manufacturing bases
not only in Japan but throughout the world.

Corporate Social Responsibility

Responsibility to Our Business Partners

Aiming for Co-Existence and Co-Prosperity with Business Partners
Procuring Parts, Materials and Equipment fromaround the World through Fair Trading Practices

Environmentally Friendly Products Based on“Green Procurement”

Toyota Industries procures parts, materials and equipment in a varietyof areas from business partners all over the world. We work toward therealization of co-existence and co-prosperity with our business partners
from a long-term perspective. Through fair trading practices, we purchasehigh-quality products at lower costs while cooperating with our business
partners in responding to environmental conservation and other social
demands.

In order to create environmentally friendly products, we aim to procureparts, materials and equipment that have low environmental impact
from business partners that always give sufficient consideration to theenvironment. Based on our Green Procurement Guidelines, we require
our business partners to establish an environmental management system.
We make it a rule for business partners to acquire external certificationon their environmental management systems such as ISO 14001 for
Toyota Industries to procure parts and raw materials. In order to adhere
to regulations regarding the use of substances of concern, we require thesuspension and reduction of use as well as the management of usage ofthese substances 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, ourprocurement system requires our business partners to submit in advancea 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 we purchase these parts.
In addition, we visit our business partners’ production plants as
deemed necessary in order to carry out process inspections. Furthermore,in an effort to strengthen management of substances of concern, analysis
equipment was introduced in fiscal 2005 to carry out random inspectionsof supplied products.

Fair Competition Based on an Open-Door Policy
We have an open and fair entry process that allows all potential business
partners, regardless of nationality, size and experience, the same
opportunity to offer us their products or services through our Website
to achieve broad and open procurement. To apply, potential business
partners must register the status of their environmental certifications, suchas ISO 14001, as well as other basic information that includes their main
product lineup and contact information.
We evaluate our business partners based on economic reasons
such as the quality, price and volume of their products, as well as on theiradherence to delivery times. In addition, we comprehensively evaluate
such matters as environmental awareness, company stability andtechnological development ability.

Amicable Relationship of Mutual Benefit
Based on Mutual Trust
We work hard to realize an amicable relation of mutual benefit withour business partners based on mutual trust. We hold procurement
policy meetings for major business partners in order to explain annual
procurement policies and to gain their understanding and cooperation.
We also hold topic-based meetings for important matters related tocorporate social responsibilities so that our business partners can share
information on our respective needs and reinforce our relationships withthem.
We also support business partners’ efforts to improve their
management platform in order to consistently procure better products.
For major business partners, we proactively support quality and cost
improvements, safety and health management as well as environmental
conservation.
In fiscal 2009, a total of 892 people attended quality training
programs held for our business partners on 35 occasions, and a totalof 84 people attended technical skill training programs. In addition
to providing guidance and cooperation directed toward improving
manufacturing processes at business partners’ production sites on 48
occasions, we also held a Safety, Health and Environment Convention.
Furthermore, to facilitate the development and strengthening of personnel
well-versed in the Toyota Production System (TPS), we encourage major
business partners to enroll in the TPS dojo* as part of such efforts. In
fiscal 2009, we accepted four people from four business partners.
* TPS dojo: A training program established in January 2000 for employees to experience forthemselves a basic education in the TPS as a means of developing “thoughts
and actions” and acquiring kaizen (continuous improvement) skills

Localization of Business Based on Good
Corporate CitizenshipAs a company that undertakes local production overseas, we promote
procurement from local business partners in order to contribute to the
local community.

Compliance with the Law
It is Toyota Industries’ and our business partners’ policy to strictly
abide by both the letter and spirit of laws and regulations and to also
carefully handle and protect our business partners’ confidential corporate
information.
Toyota Industries stresses compliance with the Act against Delay inPayment of Subcontract Proceeds, etc., to Subcontractors (hereinafter
Subcontracting Act) in its commitment to fair trading practices. Asof March 2009, some 750 business partners are covered by the
Subcontracting Act among our approximately 1,300 business partners
worldwide.
In fiscal 2009, the Purchasing Department at the Head Office, whichis responsible for ensuring compliance with the Subcontracting Act, held
71 in-house training seminars regarding this act, training a total of about
4,400 employees involved in procurement in their respective businessdivisions.
In response to growing demand for greater corporate social
responsibility, we require all business partners to fully comply with laws
and regulations.
In April 2008, we held a Procurement Policy Explanatory Meeting,in which we presented a summary of related laws and regulations andrequested full compliance by major business partners. We also held atotal of four study sessions on various laws and regulations in an effort tohelp raise the level of knowledge and compliance awareness among ourbusiness partners. We plan to continue these programs according to aprearranged annual schedule.

Toyota Industries Report 200935

Corporate Social Responsibility

Responsibility to Our Associates

Aiming to Create a Workplace Where Associates Can Work Actively and Safely
Ensuring Occupational Health and Safety

Human Resources

Initiatives for Realizing “Zero Danger”

Enhancing Team Strength and Spirit andAssociate Relations Built on Mutual TrustIn accordance with our fundamental policy of “creating workplaces andpeople capable of autonomously maintaining occupational health andsafety,” Toyota Industries strives to prevent industrial accidents and realize
better work environments to achieve “improvement from zero accidents tozero danger.”In fiscal 2009, activities in this area were carried out under threemajor policies, namely, reconfiguring an occupational health and safety
management system (OHSMS) to enhance workplace strengths, pursuingequipment safety and nurturing safety-oriented associates.

1. Reconfiguring an Occupational Health and Safety Management System
We reviewed our risk assessment activities and strove to reconfigure amore effective activity structure.
2. Pursuing Equipment Safety
In order to prevent collisions between people and in-building vehicles,
we instituted measures to isolate associates from vehicles inside
factory buildings and other facilities.
3. Nurturing Safety-Oriented Associates
Each manufacturing base launched its own safety dojo to nurtureassociates able to engage in safe behavior.
On May 7, 2008, an explosion regrettably occurred at the Obu
Plant. Reflecting on this accident, we thoroughly investigated thecause of the explosion and devised preventive countermeasures. A
decisive course of action was ingrained in each and every associate
through meetings held at all workplaces, and confirmations andcountermeasures were carried out via on-site inspections.
Since industrial accidents are on the rise among relatively
experienced associates, we focused our attention on the review ofstandard procedures for non-routine work such as measures regarding
extraordinary incidents. We are also making a concerted effort toprevent industrial accidents and occupational illnesses as well as
engaging in other measures to prevent disasters.

Frequency Rate

Severity Rate

1.50 Management and Improvement
0.30
Health
1.01

1.02

1.12*

0.55

0.55

0.58*

1.00

0.20

0.50

0.10
0.17

0.07

0.18
0

0
(FY)

ToyotaIndustries

0.27

07

08

09

Transport equipment
industry in Japan

0.11
0.09
0.07
0.009

0.08
0.006

07

08

(FY)

0.12*
0.10*

09

Manufacturingindustry in Japan

Frequency rate
Number of occupational injuries resulting in lost workdays ÷ Total working hours x 1,000,000(Value indicates the frequency of occurrence of occupational injuries per 1 million working hours.)
Severity rate
Workdays lost ÷ Total working hours x 1,000(Value indicates the severity of occupational injuries per 1,000 working hours.)*Figures for fiscal 2009 are taken from the Industrial Accident Trend Survey.

Health Management and Improvement
In response to the medium-term task of promoting Company-wide
health improvement programs concerning risks associated with aging
and greater stress, we have implemented a variety of measures tohelp support and maintain the health of our associates. Efforts include
providing health guidance for persons with metabolic syndrome from fiscal
2008, as well as holding one-day health education courses (mandatory)targeting associates reaching certain ages to prevent lifestyle diseases.
Mental health care activities include strengthening self-care/line-care
education and consultation hotlines as well as introducing a preparatory
work system, which allows associates to work half days.

36

Toyota Industries Report 2009

In order for each associate
Technical Skills
Management Skills
to be enthusiastic about theirExpertise,
TPS, QC, SQC, etc.
skillsandknow-how
Skills developed by identifying
work, as well as to ensure
problem areas and finding
continued development of thesolutionsManagement to unite a broad
Company, increasing teamTeamrange of abilities
Strength
strength (organizational power)
Leadershipis essential.
To pursue improvements
Team strength is comprised
thoroughly and continuouslyof technical skills, which serve
Teamwork
as the originating source of
Spirit of harmony
Well-rounded humanity
manufacturing; management
skills, which fully utilize technicalskills; and teamwork, which supports the first two skills. While further
enhancing our team strength, which also serves as a strong asset of the
Toyota Industries Group, we are striving to extend and hand down teamstrength beyond business domains, generations and geographic regions.

Nurturing Associates to Realize Sustainable
Growth of Toyota Industries Group
With approximately half of our associates working at Group companies
outside Japan, Toyota Industries isundertaking efforts to develop humanresources capable of playing globally
active roles that transcend regions andcountries. In May 2009, we establishedthe Hazu Academy, a global learning
center, in Hazu, Aichi Prefecture, as ourbase for developing truly global leaders
Hazu Academy
in and outside of Japan. Despite theharsh management environment, we will provide training on improving
capabilities to devise management strategies along with other courses,
while committing ourselves to developing human resources who will be
the bearers of Toyota Industries’ sustainable growth.
In 2007, Toyota Industries established the Technical Learning Centerto nurture engineers possessing expertise and execution capabilities aswell as highly skilled technicians capable of handling the fundamentals
of manufacturing. Aiming for the improvement of techniques and skills of
associates throughout the Toyota Industries Group, including affiliates, weare providing training on technical skills, the cornerstone of manufacturing.
As testimony to these efforts, 14 Toyota Industries associates
participated in five categories of the 46th National Skills Competition
held in Chiba Prefecture from October 31 to November 3, 2008, andearned medals in all categories. Among the participants, Yuichi Mori, whocompeted in the electrical welding category, won a gold medal for two
consecutive years.

Supporting a Balance between Work andChild Care/Nursing Care, Ensuring Equal
Opportunities and Respecting Diversity
We are implementing a host of measures to establish fair and impartial
workplaces where a diverse range of human resources can fully exercise
their capabilities. In our commitment to supporting a balance between
work and child care, in March 2009 we introduced a shorter work-hoursystem for child care. To ensure equal opportunities and diversity, we
proactively promote the employment of persons with disabilities. In fiscal
2009, the employment rate of persons with disabilities was 1.98% (179people, non-consolidated basis).

Corporate Social Responsibility

Responsibility to Our Local Communities

Aiming for More Harmonious Co-Existence with Local Communities
Toyota Industries carries out a broad range of social contribution activities
based on its Guiding Principles for Corporate Citizenship. With particularemphasis on social welfare, youth development and environment, weare vigorously making efforts to promote close relationships with local
communities.

Examples of Social Contribution Activities
Theme

Main Activities

Social Welfare

Holding events that people with disabilities can enjoy without stressor anxiety• Clam digging excursions• Welfare Festival• Spring harvest festival and autumn harvest festival (sweet potato digging)
Inviting children orphaned from traffic accidents to Nagoya grandsumo tournament
Creating Christmas cards using drawings by children living in anorphanage
Donating bazaar goods to welfare facilities
Collecting and donating unusable postcards, stamps and nonJapanese bank notes
Sales support of products made at vocational aid center

Youth
Development

Support for youth invention clubs• Organizing classes on weaving machinery during summer vacations• Holding handmade kite-flying competitions
Participating in Obu industrial culture festival• Organizing a handicraft corner• Producing and donating a model car for a dream car competition
Organizing an internship program for junior high school students(experiences in labor/manufacturing/environments)
Organizing an internship program for school teachers

Environment

Promoting pallets made of lumber harvested from forest thinning in Japan
Donating benches made of thinned wood in Japan
Organizing cleanup activities around plants worldwide• Cleaning up highway near a plant in U.S.A.

Community
Activities

Monitoring traffic safety
Crime-prevention patrols
Participating in traditional cultural events in local communities

OthersOrganizing “Toyota Industries Presents Autumn Concert”
Organizing year-end charity drive throughout Toyota Industries Group(soliciting donations)Support and donations for areas affected by the Sichuan Earthquake
in China

Guiding Principles for Corporate Citizenship
Basic Philosophy
Toyota Industries is respectful of the people, culture and traditions ofeach region and country in which it operates. We also work to promoteeconomic growth and social development in these regions and countries.

Basic Perspective
While striving to achieve sustainable growth as a company, we strive tofulfill our role as a good corporate citizen and actively undertake social
contribution activities in every community where Toyota Industries does
business in our efforts to help realize a prosperous and healthy society. To
accomplish this, Toyota Industries actively promotes cooperative support
activities with the objective of contributing to local communities throughthe provision of human resources, facilities, funds and know-how. Each of
our employees also endeavors to be of service to the community throughsuch means as volunteer activities.

Social Contribution Promotion Structure
We established the Corporate Citizenship Office within the General
Administration Department at the Head Office. Through this office, we
promote initiatives for implementing voluntary programs, facilitating
communications with local communities and enhancing internal
education and enlightenment programs. The Corporate Code of Conduct
Committee, which is directly controlled by the president, deliberates on
the format and specific details of social contribution plans.
In 1997, we established the Heartful Club as an internal volunteer
organization composed of volunteers that include current and former
employees of Toyota Industries and its subsidiaries as well as theirfamilies. Through this organization, we engage in a range of activities
aimed at raising awareness of volunteerism and contributing to social
prosperity.
In 2008, we opened the Heartful Volunteer Support Center asa primary base for social contribution activities, engaging in a broad
range of activities such as holding events in cooperation with non-profit
organizations (NPOs), preparing for community festivals and organizing
lectures. This facility is open to the community and freely available to all
local residents.

Society
Local communities/NPOs/NGOs/
social welfare organizations

Corporate social contribution activities
DirectIndirect▪Voluntary programs▪Lending of facilities
and equipment▪Dispatching
employees▪Donations▪Establishing andsupporting environmentsfor volunteer activities▪Providing information on
volunteering▪Implementing employee
education

Social contribution
activities by each
employee
Heartful Club internal
volunteer organization

Corporate Citizenship Office, General Administration Department at
Head Office/General Administration Department at each Business DivisionCorporate Code of Conduct Committee

Topics

Welfare Festival
In February 2009, we invited people with disabilities who attend
welfare facilities in Kariya, Aichi Prefecture, as well as theirfamilies to treat them to a variety of programs, including music,
dance and craft workshops. In fiscal 2009, the 15th year of thisevent, we welcomed 248 people, and 80 employees and local
volunteers assisted in running the event.
This occasion served to promote deeper
interaction between invited participantsand volunteers as well as between Toyota
Industries and local communities.

Cleanup of Highway near a Plant in U.S.A.
A volunteer team of employees at U.S.-based Michigan
Automotive Compressor, Inc. (MACI), a manufacturer of car
air-conditioning compressors located inMichigan, helps clean up about 3 kilometers
along the local highway near the plant. Thiscleanup activity is held three times a year,
every May, July and September, and is fully
appreciated by the local community.

Toyota Industries Report 200937

Corporate Data

(As of March 31, 2009)

Major Plants (Parent Company)
Start of
Operations

Main Products

Kariya Plant
Obu Plant
Kyowa Plant
Nagakusa Plant
Takahama Plant
Hekinan Plant
Higashichita Plant
Higashiura Plant
Anjo Plant

Textile machinery, car air-conditioning compressors
Parts for car air-conditioning compressors
Electronic equipment, automotive press dies, production facilities, engine parts
Automobiles
Industrial equipment, materials handling systems
Diesel engines, gasoline engines
Foundry parts, diesel engines
Parts for car air-conditioning compressors
Electronic equipment

1927
1944
1953
1967
1970
1982
2000
2002
2007

Major Consolidated Subsidiaries
Company Name

Location

Ownership
Ratio*

Aichi Corporation
Wanbishi Archives Co., Ltd.
TIBC Corporation
HANDA Casting Company
Mail & e Business Logistics Service Co., Ltd.
Asahi Security Co., Ltd.
TOYOTA L&F Tokyo Co., Ltd.
Altex Co., Ltd.
Sun River Co., Ltd.
IZUMI MACHINE MFG. CO., LTD.
TOYOTA L&F Keiji Co., Ltd.
Tokyu Co., Ltd.
Advanced Logistics Solutions Co., Ltd.
Toyoda High System, Incorporated
Nishina Industrial Co., Ltd.
KTL Co., Ltd.
TF Logistics Co., Ltd.
Tokaiseiki Co., Ltd.
Taikoh Transportation Co., Ltd.
SKE Inc.
SKM CORPORATION
Unica Co., Ltd.
Iwama Loom Works, Ltd.
Nagao Kogyo Co., Ltd.
TOYOTA L&F Shizuoka Co., Ltd.
TOYOTA L&F Hyogo Co., Ltd.
Hara Corporation
Sun Valley Inc.
Miduho Industry Co., Ltd.
Sun Staff, Inc.
ALT Logistics Co., Ltd.
Shine’s Co., Ltd.
Toyota Industries Well Support Corporation

Saitama
Tokyo
Aichi
Aichi
Mie
Tokyo
Tokyo
Shizuoka
Osaka
Aichi
Kyoto
Aichi
Aichi
Aichi
NaganoTokyo
Tokyo
Shizuoka
Aichi
Aichi
Aichi
Aichi
Aichi
Aichi
Shizuoka
Hyogo
Gifu
Aichi
Aichi
Aichi
Aichi
Aichi
Aichi

51.0%
100.0%
60.0%
100.0%
50.5%
100.0%
100.0%
100.0%
100.0%
100.0%
75.0%
100.0%
100.0%
100.0%
97.5%
50.5%
51.0%
100.0%
51.8%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
60.0%
100.0%
100.0%

Toyota Industries Europe AB
Toyota Industries Sweden AB
BT Products AB
Toyota Material Handling Sweden AB
Toyota Industries Finance International AB
Toyota Material Handling Norway AS
Toyota Material Handling Finland OY
Toyota Material Handling Baltic SIA.

Linköping
LinköpingMjölbyBrommaLinköping
Trondheim
VantaaRiga

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

Japan

EuropeSwedenNorwayFinland
Latvia*Including indirect investment

38

Toyota Industries Report 2009

PolandDenmark
U.K.
Germany
FranceFrance/Belgium
Belgium
Netherlands
Spain
Austria
Czech Republic
Slovakia
Hungary
Switzerland
Italy

GreeceOwnership
Ratio*

Company Name

Location

Toyota Material Handling Polska Sp. z o.o.
Toyota Material Handling Danmark A/S
Toyota Material Handling UK Limited
Toyota Material Handling Deutschland GmbHTD Deutsche Klimakompressor GmbH
Toyota Industrial Equipment, S.A.
BT France S.a.r.l
Toyota Industrial Equipment Europe, S.A.R.L.
Toyota Material Handling Europe NV/SA
Toyota Material Handling Belgium NV/SA
Toyota Material Handling Nederland B.V.
Toyota Material Handling España, S.A.
Toyota Material Handling Austria GmbH
Toyota Material Handling CZ s.r.oToyota Material Handling Slovensko s.r.o.
Toyota Material Handling Hungary Ltd.
Toyota Material Handling Schweiz AG
Toyota Textile Machinery Europe, AG
CESAB Carrelli Elevatori S.p.A.
Toyota Carrelli Elevatori Italia S.r.l.
BTCESAB S.r.l.
Toyota Material Handling Greece SA

Pruszków
Slangerup
Slough, Berkshire
Langenhagen
Bernsdorf
AncenisMarne La ValléeAncenis (France)/Brussels(Belgium)
Brussels
Wilrijk
Ede
Barberá del Vallés
Wiener Neudorf
Rudna
Bratislava
VecsésZürichUster
Bologna
Bologna
BolognaAthens100.0%
100.0%
100.0%
100.0%
65.0%
80.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
50.0%
100.0%
100.0%
100.0%
100.0%
100.0%

Toyota Industries North America, Inc.
Toyota Industrial Equipment Mfg., Inc.
The Raymond Corporation
Raymond-Muscatine Inc.
Indiana Hydraulic Equipment, Corp.
Toyota Material Handling, U.S.A., Inc.
Michigan Automotive Compressor, Inc.
TD Automotive Compressor Georgia, LLC
ACTIS Manufacturing, Ltd. LLC
Toyoda Textile Machinery, Inc.
Toyota Industries Personnel Service of America, Inc.
Raymond Industrial Equipment Ltd.
Lift-Rite Inc.
G. N. Johnston Equipment Co., Ltd.

Elk Grove Village, Illinois
Columbus, Indiana
Greene, New York
Muscatine, Iowa
Franklin, Indiana
Irvine, California
Parma, Michigan
Pendergrass, Georgia
Grapevine, Texas
Charlotte, North Carolina
Elk Grove Village, Illinois
Brantford, Ontario
Brampton, Ontario
Mississauga, Ontario

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
60.0%
65.0%
60.0%
100.0%
100.0%
100.0%
100.0%
100.0%

Toyota Material Handling Mercosur Comercio de Equipamentos LTDA
Toyota Máquinas Têxteis Brasil Ltda

São PauloSão Paulo

100.0%
100.0%

Toyota Material Handling Australia Pty Limited
Kirloskar Toyoda Textile Machinery Pvt. Ltd.
Toyota Material Handling (Shanghai) Co., Ltd.
TD Automotive Compressor Kunshan Co., Ltd.
Toyota Industry (Kunshan) Co., Ltd.
Toyota Industry Automotive Parts (Kunshan) Co., Ltd.
Toyota Industries Trading & Logistics (China) Co., Ltd.

New South Wales
Bangalore
Shanghai
Kunshan, Jiangsu
Kunshan, Jiangsu
Kunshan, Jiangsu
Shanghai

100.0%
95.1%
100.0%
59.8%
70.0%
60.0%
100.0%

North America
U.S.A.

CanadaSouth America
BrazilAsia and Oceania
Australia
India
China

Major Affiliates Accounted for by the Equity Method
Company Name

Location

Fuji Logistics Co., Ltd.

Tokyo

Toyota Motor Industries Poland Sp. z o.o.

Jelcz-Laskowice

Ownership
Ratio*

Japan
26.6%

EuropePoland40.0%*Including indirect investment

Toyota Industries Report 200939

Board of Directors, Corporate Auditors and Managing Officers(As of June 19, 2009)

Board of Directors

ChairmanPresident

Tadashi Ishikawa

Tetsuro Toyoda

Executive Vice President

Executive Vice President

Tatsuo Matsuura

Akira Imura

Senior Managing Directors

Shigetaka Yoshida
Masafumi Kato
Yasuharu Toyoda
Yutaka Murodono

Directors

Kazunori Yoshida
Kosaku Yamada
Toshiyuki Sekimori
Kimpei Mitsuya

Tatsuro Toyoda
Norio Sato

Corporate Auditors
Standing Corporate Auditors

Masanori Ito
Kakuo Ishikawa

Corporate Auditors

Fumio Kawaguchi
Katsuaki Watanabe
Shinichi Sasaki

Managing Officers
Senior Managing Officers

Satoshi Kaseda
Kazue Sasaki
Hirotaka Morishita
Shinya Furukawa
Akira Onishi

40

Toyota Industries Report 2009Managing Officers

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

Taku Yamamoto
Yukihisa Tsuchimoto
Kan Otsuka
Masaharu Suzuki
Hiroaki Asai
Takashi Ito
Toshiya Yamagishi

Financial Section
Management’s Discussion and Analysis ofFinancial Condition and Results of Operations
Consolidated Balance Sheets
Consolidated Statements of Income
Consolidated Statements of Changes in Net Assets
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
Report of Independent Auditors
Investor Information

42
48
50
51
52
53
70
71

Toyota Industries Report 200941

Financial Section

Management’s Discussion and Analysis ofFinancial Condition and Results of Operations
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations are
based on information known to management as of June 2009.
This section contains projections and forward-looking statements that involve risks, uncertainties andassumptions. You should be aware that certain risks and uncertainties could cause the actual results ofToyota Industries Corporation and its consolidated subsidiaries to differ materially from any projections or
forward-looking statements. These risks and uncertainties include, but are not limited to, those listed under“Risk Information” and elsewhere in this annual report.
The fiscal year ended March 31, 2009 is referred to as fiscal 2009 and other fiscal years are referred toin a corresponding manner. All references to the “Company” herein are to Toyota Industries Corporation andreferences to “Toyota Industries” herein are to the Company and its 160 consolidated subsidiaries.

Result of Operations

Cost of Sales and Selling, General and
Administrative Expenses

Operating Performance

Cost of sales for fiscal 2009 decreased ¥289.4 billion (17%) from

In fiscal 2009, global economic conditions became extremely harsh.

fiscal 2008 to ¥1,389.0 billion. This was due mainly to the decline in

The deterioration of the real economy triggered by the financial crisis

sales.

spread beyond the United States and Europe to emerging countries.

Selling, general and administrative expenses decreased ¥23.3

Concurrently, the Japanese economy rapidly declined as exports,

billion (10%) from fiscal 2008 to ¥201.8 billion, due primarily to a

production and private-sector capital investment sharply decreased,

decrease in personnel expenses.

accompanied by the escalation of the severity of the employment
situation.
In this operating environment, Toyota Industries undertook efforts

Operating Income (Loss)
Operating loss for fiscal 2009 was ¥6.6 billion compared withto strengthen its management platform by ensuring customer trust

operating income of ¥96.8 billion in fiscal 2008, due to the impact

through its dedication to quality, developing attractive new products,of rising raw material and purchased parts costs and exchange rate

engaging in aggressive sales promotions and implementing Group-

fluctuations as well as the decline in net sales.

wide cost-reduction activities. Toyota Industries also systematically,in order to respond to the sharp decline in net sales since autumn

Operating Performance Highlights by Business
Segment

2008. However, such efforts were unable to counteract the extremely

Following are the operating results by business segment. Net sales

fast pace of market contractions. As a result, total consolidated net

for each segment do not include inter-segment transactions.

quickly and thoroughly proceeded with earnings recovery activities

sales amounted to ¥1,584.2 billion, a decrease of ¥416.3 billion (21%)
from fiscal 2008.
In terms of overall profit, Toyota Industries undertook vigorous

In fiscal 2009, the automobile industry saw the market rapidly

cost reduction activities in terms of purchased parts costs andcontract in developed nations and a slowdown in market growth inprocessing expenses as well as productivity improvements.

emerging countries, in which expansion was expected. Amid thisIn addition, Toyota Industries organized the Emergency Profit

environment, net sales of the Automobile Segment totaled ¥755.9

Improvement Committee in December 2008 to thoroughly reducebillion, a decrease of ¥213.3 billion (22%) from fiscal 2008, whilecosts. However, significantly lower sales in Japan and overseas,

operating loss was ¥11.5 billion compared with operating income ofrises in raw materials and parts prices and the negative impact of¥41.5 billion in fiscal 2008.

exchange rate fluctuations led to an operating loss of ¥6.6 billion,

Within this segment, net sales of the Vehicle Business totaleda decrease of ¥103.4 billion from fiscal 2008. Ordinary income¥378.1 billion, a decrease of ¥122.0 billion (24%) from fiscal 2008,

amounted to ¥14.3 billion, a decrease of ¥112.1 billion (89%) fromdue mainly to decreases in unit sales of the Vitz (Yaris outside Japan),fiscal 2008. Toyota Industries recorded extraordinary losses arising

RAV4 and Mark X ZiO.

from losses on impairment of property, plant and equipment due to a

Net sales of the Engine Business totaled ¥156.6 billion, adecrease in production volume as well as from losses of discontinuing

decrease of ¥22.1 billion (12%) from fiscal 2008, as a result of a

production of designated electronics parts. These factors led to a net

decline in unit sales of AD diesel engines installed mainly in the RAV4.

loss of ¥32.7 billion, a decrease of ¥113.1 billion from fiscal 2008.

42

Automobile Segment

Toyota Industries Report 2009

Net sales of the Car Air-Conditioning Compressor Businesstotaled ¥186.3 billion, a decrease of ¥67.2 billion (26%) fromJapan

fiscal 2008, due to significant decreases in production volume by

Net sales decreased ¥276.4 billion (21%) from fiscal 2008 to

automakers in North America, Europe and Japan.

¥1,066.6 billion, while operating loss was ¥1.6 billion compared with
operating income of ¥82.0 billion in fiscal 2008. This was attributable

Materials Handling Equipment Segment

primarily to decreases in unit sales of vehicles, engines, car air-In the materials handling equipment industry as a whole, the market

conditioning compressors and lift trucks.

experienced a downturn worldwide. Particularly since October 2008,
unit sales plummeted on an unprecedented level both in Japan andNorth America

overseas. Amid this backdrop, net sales of the Materials Handling

Net sales decreased ¥71.7 billion (27%) from fiscal 2008 to ¥193.8

Equipment Segment totaled ¥639.6 billion, a decrease of ¥143.5

billion, while operating loss was ¥4.7 billion compared with operating

billion (18%) from fiscal 2008. Operating income amounted to ¥3.7

income of ¥3.5 billion in fiscal 2008, due mainly to decreases in unit

billion, a decrease of ¥36.1 billion (91%) from fiscal 2008. Althoughsales of car air-conditioning compressors and lift trucks.

Toyota Industries aggressively engaged in global sales promotion
activities for lift trucks, a mainstay product of this segment, unit sales

Europedecreased for both TOYOTA- and BT-brand products. A decline

Net sales decreased ¥55.6 billion (17%) from fiscal 2008 to ¥272.1

in unit sales of truck mount aerial work platforms and the negative

billion, while operating loss was ¥3.9 billion compared with operating

impact of exchange rate fluctuations were also key factors.

income of ¥7.9 billion in fiscal 2008. This was attributable primarily toa decrease in unit sales of lift trucks.

Logistics Segment
The overall operating environment remained severe in the logistics

Othersindustry as the volume of cargo transport continued to decline in

Net sales totaled ¥51.6 billion, a decrease of ¥12.5 billion (20%) fromthe Japanese market. In this environment, net sales of the Logistics

fiscal 2008, while operating income decreased ¥3.1 billion (59%) from

Segment totaled ¥114.8 billion, a decrease of ¥2.7 billion (2%) fromfiscal 2008 to ¥2.0 billion.

fiscal 2008. Despite the strong performance by businesses engaged
in collection and delivery of cash and management of sales proceeds

Non-Operating Income and Expenses

services as well as secure storage, management, collection andNon-operating income decreased ¥5.6 billion (9%) from fiscal 2008 to

delivery of corporate documents services, this was offset by a decline¥59.3 billion in fiscal 2009 and non-operating expenses totaled ¥38.3

in sales of the cargo transport business of automotive-related parts.

billion, an increase of ¥3.1 billion (9%) from fiscal 2008.

Operating income amounted to ¥2.9 billion, a decrease of ¥1.3 billion(31%) from fiscal 2008.

This is due mainly to equity in net losses of affiliated companies
in fiscal 2009, despite posting equity in net earnings of affiliatedcompanies in fiscal 2008.

Textile Machinery Segment
In the textile machinery industry as a whole, the primary markets

Extraordinary Gains and Lossesof China and India rapidly deteriorated resulting from an economic

Extraordinary losses totaled ¥37.5 billion, due mainly to losses on

downturn in the United States and Europe. In such an economic

impairment of property, plant and equipment due to a decrease in

climate, net sales of the Textile Machinery Segment totaled ¥29.5

production volume as well as from losses of discontinuing production

billion, a decrease of ¥36.7 billion (55%) from fiscal 2008, owingof designated electronics parts.

mainly to a significant decrease in unit sales of air-jet looms sold toChina, while operating loss was ¥2.0 billion compared with operating
income of ¥4.2 billion in fiscal 2008.

Income (Loss) before Income Taxes and Minority
Interests
Loss before income taxes and minority interests amounted to ¥23.2

Others Segment

billion compared with income before income taxes and minority

Net sales of the Others Segment totaled ¥44.2 billion, a decrease ofinterests of ¥132.3 billion in fiscal 2008, as a result of a ¥112.1 billion¥20.0 billion (31%) from fiscal 2008, while operating loss was ¥46.0(89%) decrease in ordinary income from fiscal 2008 to ¥14.3 billion.

million compared with operating income of ¥6.7 billion in fiscal

Extraordinary losses totaled ¥37.5 billion.

2008.

Income Taxes
Sales by Geographical Segment

Income taxes decreased ¥28.1 billion (63%) from fiscal 2008 to ¥16.4

Below are Toyota Industries’ operating results by geographicalbillion, due mainly to a decrease in corporate income taxes of thesegment. Net sales for each geographical segment do not include

Company.

inter-segment transactions.

Toyota Industries Report 200943

Financial Section

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Minority Interests in Consolidated Subsidiaries

long-term loans payable in the amount of ¥126.1 billion, an increase

Loss on minority interests in consolidated subsidiaries amounted toof ¥74.5 billion (144%) from fiscal 2008. Net cash provided by¥6.9 billion compared with income of ¥7.3 billion in fiscal 2008.

financing activities increased by ¥86.9 billion compared with net cashused in financing activities of ¥33.9 billion in fiscal 2008.

Net Income (Loss)

After translation adjustments, cash and cash equivalents as of

Net loss totaled ¥32.7 billion compared with net income of ¥80.4

March 31, 2009 stood at ¥188.0 billion, an increase of ¥66.8 billion

billion in fiscal 2008. Net loss per share was ¥105.16 compared with(55%) from fiscal 2008.

net income per share of ¥257.50 in fiscal 2008.

Investment in Property, Plant and Equipment
Liquidity and Capital Resources

During fiscal 2009, Toyota Industries made a total investment of

Toyota Industries’ financial policy is to ensure sufficient financing¥134.5 billion in property, plant and equipment (including vehicles

and liquidity for its business activities and to maintain strong balance

and materials handling equipment for lease) in order to launch

sheets. Currently, funds for capital investments and other long-term

new products, streamline and upgrade production equipment andcapital needs are provided from retained earnings and long-term

augment R&D facilities.

debt, and working capital needs are met through short-term loans.

In the Automobile Segment, investment in property, plant andLong-term debt financing is carried out mainly through issuance ofequipment totaled ¥52.8 billion. A primary breakdown of this amountcorporate bonds and loans from financial institutions.

included ¥32.9 billion for the Company, ¥5.4 billion for Tokyu Co.,

Toyota Industries continues to maintain its solid financial

Ltd., ¥4.8 billion for Tokaiseiki Co., Ltd., ¥2.8 billion for Toyota

condition. Through the use of such current assets as cash andIndustry Automotive Parts (Kunshan) Co., Ltd., ¥1.6 billion for Iwama

cash equivalents and securities, as well as free cash flows andLoom Works, Ltd. and ¥1.5 billion for TD Deutsche Klimakompressor

funds procured from financial institutions, Toyota Industries believesGmbH.

that it will be able to provide sufficient funds for the working capital

The Materials Handling Equipment Segment made an investment

necessary to expand existing businesses and develop new projects,

in property, plant and equipment in the total amount of ¥53.4 billion.

as well as for future investments.

The primary breakdown comprised ¥3.4 billion for the Company,

Regarding fund management, the Company undertakes
integrated fund management of its subsidiaries in Japan, while Toyota
Industries North America, Inc. (TINA) and Toyota Industries Finance¥30.8 billion for the Toyota Industries Sweden Group, ¥1.9 billion for
Handa Casting Co., Ltd. and ¥1.5 billion for the Aichi Group.
Investment in property, plant and equipment in the Logistics

International AB (TIFI) centrally manage the funds of subsidiaries in

Segment totaled ¥13.9 billion, including ¥25.0 million for the

North America and Europe, respectively.

Company, ¥7.0 billion for Wanbishi Archives Co., Ltd., ¥3.6 billion for

Through close cooperation among the Company, TINA and
TIFI, we strive for efficient, unified fund management on a global
consolidated basis.

Asahi Security Co., Ltd., ¥1.9 billion for Taikoh Transportation Co.,
Ltd. and ¥1.0 billion for Tokai-Kouun Transportation Co., Ltd.
The Textile Machinery Segment made an investment in property,
plant and equipment in the total amount of ¥0.4 billion, including ¥0.3
billion for the Company.

Cash Flows
Cash flows from operating activities amounted to ¥65.7 billion in fiscal
2009, due mainly to loss before income taxes and minority interestsin the amount of ¥23.2 billion compared with income before income
taxes and minority interests in the amount of ¥132.3 billion in fiscal

The Others Segment made an investment in property, plant andequipment in the total amount of ¥13.8 billion, including ¥11.9 billion
for the Company and ¥1.3 billion for TIBC Corporation.
Necessary funds were provided by a portion of bonds as well as
treasury stock and bank loans.
Due to a decrease in production volume accompanied by severe

2008. Net cash provided by operating activities decreased by ¥123.1

economic conditions, losses on impairment of property, plant andbillion (65%) from ¥188.8 billion in fiscal 2008.

equipment amounted to ¥25.1 billion in the Automobile Segment,

Cash flows from investing activities resulted in a decrease in cashof ¥114.2 billion in fiscal 2009, attributable primarily to payments for¥0.5 billion in the Materials Handling Equipment Segment and ¥10.1
billion in the Others Segment.

purchases of property, plant and equipment amounting to ¥122.4
billion, a decrease of ¥13.1 billion (10%). Net cash used in investing
activities decreased by ¥24.5 billion (18%) from ¥138.7 billion forfiscal 2008.
Cash flows from financing activities resulted in an increase in
cash of ¥120.9 billion in fiscal 2009, due mainly to proceeds from44

Toyota Industries Report 2009

Strategies and Outlook
Outlook for Results for Fiscal 2010
For the foreseeable future, the business environment surrounding

Toyota Industries is expected to become even more challenging, withconcerns over a protracted global economic downturn as well as the
directions of exchange rates and stock markets.
In order to improve profitability in such an environment, Toyota

Risk Information
The following represent risks that could have a material impact on
Toyota Industries’ financial condition, business results and share

Industries will make a concerted effort to quickly and thoroughly

prices. Toyota Industries judged the following as future risks as ofpromote reforms in the business and cost structures, as well as

March 31, 2009.

rebuild our management platform into a more muscular and strong
one. Specifically, Toyota Industries will continue to undertake vigorous

Principal Customers

measures to reduce fixed costs, including labor costs, depreciation

Toyota Industries’ automobile and engine products are sold primarilyand other expenses, as well as to downsize the corporate structure

to Toyota Motor Corporation (TMC). In fiscal 2009, net sales to TMC

and lower the break-even point. Toyota Industries will also implement

accounted for 35.7% of consolidated net sales. Therefore, TMC’sa wide variety of measures to enhance sales, such as releasing new

vehicle sales could have an impact on Toyota Industries’ businessproducts and engaging in sales expansion activities.

results. As of March 31, 2009, TMC holds 24.6% of the Company’s

For fiscal 2010, ending March 31, 2010, Toyota Industries

voting rights.

forecasts consolidated net sales of ¥1,300.0 billion, an operating
loss of ¥10.0 billion, an ordinary loss of ¥11.5 billion and a net loss of

Product Development Capabilities¥10.0 billion. By segment, we forecast net sales of ¥655.0 billion in

Based on the concept of “developing appealing new products,”

the Automobile Segment and ¥480.0 billion in the Materials Handling

Toyota Industries proactively develops new products by utilizing its

Equipment Segment.

leading-edge technologies, as it strives to anticipate increasingly

Our projections are based on assumed exchange rates of ¥95.0= US$1 and ¥125.0 = €1.

sophisticated and diversifying needs of the market and ensure thesatisfaction of its customers. R&D activities are focused mainly on
developing and upgrading products in current business fields andperipheral sectors. Toyota Industries expects that revenues derived

Dividend Policy

from these fields will continue to account for a significant portion of

The Company regards the benefits of shareholders as one of its moston the development and sales of new products in these fields. Toyota

important management policies. Based on this stance, we will strive

Industries believes that it can continue to develop appealing new

to strengthen Toyota Industries’ corporate constitution, promote

products. However, Toyota Industries may not be able to forecast

proactive business development and raise its corporate value.

market needs and develop and introduce appealing new products in

The Company’s dividend policy is to meet the expectations ofa timely manner. This could result in lower future growth and have anshareholders while giving full consideration to business performance,

adverse impact on Toyota Industries’ financial condition and businesscapital demand, the dividend payout ratio on a consolidated basis

results.

total revenues and anticipates that future growth will be contingent

and other factors. Toyota Industries’ Ordinary General Meeting of

Such a situation could result from risks that include no assurance

Shareholders, held on June 19, 2009, approved a year-end cash

Toyota Industries can allocate sufficient future funds necessary for thedividend of ¥10.0 per share. Including the interim cash dividend ofdevelopment of appealing new products; no assurance that product¥30.0 per share, cash dividends for the year totaled ¥40.0 per share,sales will be successful, as forecasts of products supported by thea decrease of ¥20.0 per share from fiscal 2008.

market may not always be accurate; and no assurance that newly

Toyota Industries will use retained earnings to improve thecompetitiveness of its products, augment production capacity indeveloped products and technologies will always be protected as
intellectual property.

Japan and overseas, as well as expand into new fields of businessand strengthen its corporate constitution in securing future profits forIntellectual Property Rights

its shareholders.

In undertaking its business activities, Toyota Industries has acquired

The Company’s Articles of Incorporation stipulate that it may pay

numerous intellectual property rights, including those acquired

interim cash dividends as prescribed in Article 454-5 of the Corporate

overseas, such as patents related to its products, product designs

Law, and it is the Company’s basic policy to pay dividends fromand manufacturing methods. However, not all patents submitted willretained earnings twice a year (interim and annual). The Company’snecessarily be registered as rights, and these patents could thus be

Articles of Incorporation also stipulate that what is prescribed inrejected by patent authorities or invalidated by third parties. Also,

Article 459-1 of the Corporate Law can be added to the Articles ofa third party could circumvent a patent of Toyota Industries andIncorporation. As the Company’s policy, discretion to pay interim cash

introduce a competing product into the market. Moreover, Toyota

dividends is determined by the Board of Directors while payment

Industries’ products utilize a wide range of technologies. Therefore,of year-end cash dividends is subject to approval at the Ordinary

Toyota Industries could become a party subject to litigation involving

General Meeting of Shareholders.

the intellectual property rights of a third party.

Toyota Industries Report 200945

Financial Section

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Product Defects

activities with other companies through alliances and joint ventures.

Guided by the basic philosophy of “offering products and services

However, a wildly fluctuating market trend or a disagreement between

that are clean, safe and of high quality,” Toyota Industries makes its

Toyota Industries and its partners, owing to business, financial orutmost efforts to enhance quality. However, Toyota Industries cannot

other reasons, could prevent Toyota Industries from deriving theguarantee all its products will be defect-free and that product recalls

intended benefits of its alliances.

will not be made in the future. Product defects that could lead tolarge-scale recalls and product liability indemnities could result in

Exchange Rate Fluctuations

large cost burdens and have a significant negative impact on the

Toyota Industries’ businesses encompass the production and sales

evaluation of Toyota Industries. It could also have an adverse effectof products and the provision of services worldwide. Generally, theon Toyota Industries’ financial condition and business results due to astrengthening of the yen against other currencies (especially against

decrease in sales, deterioration of profitability and decrease in share

the U.S. dollar and the euro, which account for a significant portion ofprices of Toyota Industries.

Toyota Industries’ sales) has an adverse impact on Toyota Industries’
business, while a weakening of the yen has a favorable impact. An

Price Competition

increase in the value of currencies in countries or regions where

Toyota Industries faces extremely harsh competition in each of the

Toyota Industries carries out production could lead to an increase inindustries in which it conducts business, including its Automobile

local production, procurement and distribution costs. Such an increase

and Materials Handling Equipment businesses, which are the core

in costs could reduce Toyota Industries’ price competitiveness.

of Toyota Industries’ earnings foundation. Toyota Industries believes

Additionally, because export sales of several businesses are

it offers high value-added products that are unrivalled in terms ofdenominated mainly in yen, exchange rate fluctuations could have an

technology, quality and cost. Amid an environment characterized

adverse impact on Toyota Industries’ financial condition and businessby intensifying price competition, however, Toyota Industries may

results due to a change in market prices.

be unable to maintain or increase market share against low-costcompetitors or to maintain profitability. This could have an adverse

Share Price Fluctuations

impact on Toyota Industries’ financial condition and business results.

Toyota Industries holds marketable securities, and therefore bears
the risk of price fluctuations of these shares. Based on fair market

Reliance on Suppliers of Raw Materials andComponents

value of these shares at the end of the fiscal year under review,

Toyota Industries’ products rely on various raw materials andmarketable securities could worsen depending on future share pricecomponents from suppliers outside the Toyota Industries Group.

movements. Additionally, a fall in share prices could reduce the value

Toyota Industries has concluded basic business contracts with theseof pension assets, leading to an increase in the pension shortfall.

Toyota Industries had unrealized gains. However, unrealized gains on

external suppliers and assumes it can carry out stable transactions
has no assurances against future shortages of raw materials andEffects of Disasters, Power Blackouts and Other
Incidents

components, which arise from a global shortage due to tight supply

Toyota Industries carries out regular checks and inspections of its

or an unforeseen accident involving a supplier. Such shortages could

production facilities to minimize the effect of production breakdown.

have a negative effect on Toyota Industries’ product production andHowever, there is no assurance Toyota Industries can completely

cause an increase in costs, which could have an adverse impact on

prevent or lessen the impact of man-made or natural disasters,

Toyota Industries’ financial condition and business results.

including malfunctions of production facilities, fires at production

for raw materials and components. However, Toyota Industries

facilities and power blackouts. For example, the majority of Toyota

Environmental Regulations

Industries’ domestic production facilities and most of its businessIn view of its social responsibilities as a company, Toyota Industries

partners are situated in the Chubu region. Therefore, a major

strives to reduce any burden on the environment resulting fromearthquake such as the Tokai Earthquake, or an incident that affects

its production processes, as well as strictly adheres to applicable

other operations, could delay or stop production or shipment activities.

environmental laws and regulations. However, various environmental

Such prolonged delays and stoppages could have an adverse impact

regulations could also be revised and strengthened in the future.

on Toyota Industries’ financial condition and business results.

Accordingly, any expenses necessary for continuous strict adherence
to these environmental regulations could result in increased businesscosts and have an adverse impact on Toyota Industries’ financial
condition and business results.

Latent Risks Associated with International
Activities
Toyota Industries manufactures and sells products and provides

46

Alliances with Other Companies

services in various countries. Such unforeseen factors as social

Aiming to expand its businesses, Toyota Industries engages in joint

chaos, including political disruptions, terrorism and wars, as well as

Toyota Industries Report 2009changes in economic conditions, could have an adverse impact onreasonable. However, differences between actual results or changes

Toyota Industries’ financial condition and business results.

in the assumptions could have an impact on retirement benefits andretirement benefit expenses and liabilities after employee retirement.

Retirement Benefit Liabilities
Toyota Industries’ employee retirement benefit expenses and liabilities
are calculated based on expected rates of return on pension assets
as well as assumptions upon making actuarial calculations thatincorporate discount rates and other factors. Therefore, differences

Toyota Industries’ Relationship to Toyota
Motor Corporation

between actual results and assumptions as well as changes in the

Due to historical reasons, Toyota Industries maintains close

assumptions could have a significant impact on recognized expenses

relationships with TMC and Toyota Group companies in terms ofand calculated liabilities in future accounting periods.

capital and business dealings.

Historical BackgroundSignificant Accounting Policies andEstimates

In 1933, Kiichiro Toyoda, the eldest son of founder Sakichi

Toyota Industries’ financial statements are prepared in conformity

Department within the Company based on his resolve to manufacturewith accounting principles and practices generally accepted inJapanese-made automobiles. In 1937, the Automobile Department

Japan. In preparing financial statements, management must makewas spun off and became an independent company, Toyota Motorestimates, judgments and assumptions that affect reported amounts

Co., Ltd. (the present Toyota Motor Corporation).

Toyoda and then Managing Director of Toyota Industries (thenToyoda Automatic Loom Works, Ltd.), established the Automobile

of assets and liabilities at fiscal year-end as well as revenues andexpenses during each fiscal year. Among Toyota Industries’ significant

Capital Relationshipaccounting policies, the following categories require a considerable

In light of this historical background, Toyota Industries and TMC

degree of judgment and estimation and are highly complex.

have maintained a close capital relationship. As of March 31, 2009,
Toyota Industries holds 6.4% (200,195 thousand shares) of TMC’s

Allowance for Doubtful Accounts

total shares issued. Likewise, as of the same date, TMC holds 24.6%

To prepare for the risk of receivables becoming uncollectible, Toyota

of Toyota Industries’ total voting rights. Toyota Industries is a TMC

Industries estimates its allowance for doubtful accounts by utilizing

affiliate accounted for by the equity method.

the percentage of historical experiences in credit losses for ordinary
receivables and individually examining the feasibility of collection for

Business Relationshipreceivables that seem to be uncollectible. Evaluating the allowance for

Toyota Industries assembles certain cars and produces automobile

doubtful accounts involves judgments made in accordance with theengines under consignment from TMC. Additionally, we sell a portion

nature of the situation, and this allowance represents an essential andof our other components and products directly or indirectly to othercrucial estimate—including future estimates of cash flow amounts

Toyota Group companies. In fiscal 2009, our net sales to TMC

and timing—that could change significantly. Based on currently

accounted for 35.7% of our consolidated net sales.

available information, Toyota Industries’ management believes its
present allowance for doubtful accounts is sufficient. However, theContributions to the Toyota Groupneed to significantly increase allowance for doubtful accounts in the

As a member of the Toyota Group, Toyota Industries aims tofuture could have an adverse impact on Toyota Industries’ business

contribute to strengthening the competitiveness of TMC and otherresults.

Toyota Group companies in such areas as quality, cost, delivery andtechnologies. Toyota Industries is confident that raising the Toyota

Allowance for Retirement Benefits

Group’s competitiveness will lead to increases in our sales to andCalculations differ for retirement benefits, retirement benefit expenses

profits from the Toyota Group, thereby contributing to raising Toyota

and liabilities after employee retirement, as well as benefits for

Industries’ corporate value.

employees on leave of absence, because different assumptions areused at the time of calculation. Assumptions include such factors as
discount rates, amount of benefits, interest expenses, expected rates
of return on pension assets and mortality rates. The difference inamounts between these assumptions and actual results is calculated
cumulatively and amortized over future accounting periods, andthus becomes an expense and is recognized as a liability in futureaccounting periods. Toyota Industries believes its assumptions are

Toyota Industries Report 200947

Financial Section

Consolidated Balance Sheets

Toyota Industries Corporation
As of March 31, 2009 and 2008
Millions of yen

ASSETS

2009

2008

Current assets:
Cash and deposits¥ 169,743 ¥ 115,557

Trade notes and accounts receivable

158,798

244,035

Short-term investments

58,83840,621–

124,633

Merchandise and finished goods (Notes 5 and 9)

44,237–Work in process (Note 5)

30,500–Raw materials and supplies (Note 5)

27,423–

Deferred tax assets (Note 19)

16,60018,860

Other current assets

64,63254,391

Allowance for doubtful accounts(2,806)(2,486)567,967

595,612

Buildings and structures (Notes 6 and 9)

182,214

188,776

Machinery, equipment and vehicles (Note 6)

252,402266,347

Tools, furniture and fixtures (Note 6)

25,59828,145Land (Note 9)

110,078

107,727

Construction in progress

18,97031,849Total property, plant and equipment

589,264

622,847

Goodwill

107,072

137,163

Software

11,736

12,522

Total intangible assets

118,809

149,685

907,524

1,513,779

5,954

8,056

Inventories (Notes 5 and 9)

Total current assets
Fixed assets:
Property, plant and equipment

Intangible assets:

Investments and other assets:
Investments in securities (Notes 4 and 9)
Long-term loans receivable
Deferred tax assets (Note 19)

11,578

8,578

Other investments and other assets

126,534

67,202

(199)

(177)

1,051,391

1,597,439

1,759,464

2,369,972

Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets
The accompanying notes are an integral part of these financial statements.

48

Toyota Industries Report 2009

¥2,327,432 ¥2,965,585

Millions of yen

LIABILITIES AND NET ASSETS
Current liabilities:
Trade notes and accounts payable
Short-term loans payable (Note 9)
Commercial papers
Current portion of bonds
Accounts payable—otherAccrued income taxes
Deferred tax liabilities (Note 19)
Allowance for bonuses to directors and corporate auditors
Other current liabilities (Note 9)
Total current liabilities
Long-term liabilities:
Bonds (Note 7)Long-term loans payable (Notes 7 and 9)
Lease obligations (Notes 2, 3 and 7)
Deferred tax liabilities (Note 19)
Allowance for retirement benefits (Note 10)
Other long-term obligations
Total long-term liabilities
Total liabilities
Shareholders’ equity (Note 13):
Capital stock
Authorized — 1,100,000,000 shares
Issued— 325,840,640 shares as of March 31, 2009
325,840,640 shares as of March 31, 2008
Capital surplus
Retained earnings
Treasury stock
14,263,027 shares as of March 31, 2009
14,251,070 shares as of March 31, 2008
Total shareholders’ equity
Valuation and translation adjustments:
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total valuation and translation adjustments
Subscription rights to shares
Minority interests
Total net assets
Total liabilities and net assets

2009

2008

¥ 104,658 ¥ 214,084
63,18752,326
26,35633,70032,07220,00025,34930,3897,570
27,137
249
1,881
214
626
154,720
157,894
414,379

538,041

231,501
285,340
104,245
252,20944,05518,029230,766
185,513–482,787
47,102
27,376935,382
1,349,762

973,547
1,511,588

80,46280,462

106,180
412,294(50,672)

106,184
466,780(50,644)548,264

602,783

392,489
24(10,048)752,553140
41,477

382,466
794,171
1,224
695
45,71556,345
977,670 1,453,996¥2,327,432 ¥2,965,585

Toyota Industries Report 200949

Financial Section

Consolidated Statements of Income

Toyota Industries Corporation
For the years ended March 31, 2009 and 2008
Millions of yen

2009

2008

Net sales¥1,584,252 ¥2,000,536

Cost of sales (Note 14)

1,389,002

1,678,493

Gross profit

195,249

322,043

Sales commissions

10,287

11,650

Salaries and allowances

75,42682,362Retirement benefit expenses

2,012

2,063

Depreciation

8,734

10,058

Research and development expenses

23,61022,365

Other

81,80096,688(6,621)

96,853

Interest income

12,677

14,737

Dividends income

37,781

34,850

498

3,043

–

987

Selling, general and administrative expenses (Notes 14 and 18):

Operating income (loss)
Non-operating income:Gain on sales of marketable securities
Rental income of fixed assets
Equity in net earnings of unconsolidated subsidiaries and affiliated companies

–

2,749

8,356

8,547

Interest expenses(19,770)(19,453)

Loss on disposal of fixed assets(4,131)(2,988)Other non-operating income
Non-operating expenses:

Equity in net losses of unconsolidated subsidiaries and affiliated companies(3,130)–

Other non-operating expenses(11,314)(12,840)

14,343

126,488–

5,866

Losses on impairment of property, plant and equipment due to a decrease in production volume(26,526)–

Losses of discontinuing production of designated electronic parts(11,064)–

Income (loss) before income taxes and minority interests(23,247)

132,355

8,248

47,057

Income taxes — deferred (Note 19)8,240(2,528)

Income (loss) on minority interests in consolidated subsidiaries(6,968)7,365(32,767) ¥80,460Ordinary income
Extraordinary gains:
Proceeds from sales of investment securities
Extraordinary losses (Note 15):

Income taxes — current (Note 19)

Net income (loss)¥

Yen

Net income (loss) per share — basic (Note 25)
Net income (loss) per share — diluted (Note 25)
Total net assets per share (Note 26)
Cash dividends per share
The accompanying notes are an integral part of these financial statements.

50

Toyota Industries Report 2009

¥ (105.16) ¥ 257.50–

257.43

2,987.16

4,483.32

40.00

60.00

Financial Section

Consolidated Statements of Changes in Net Assets

Toyota Industries Corporation
For the years ended March 31, 2009 and 2008
Millions of yen

2009

Millions of yen

2008

2009

Shareholders’ equity
Capital stock

Balance at the end of previous period

Balance at the end of previous period¥ 80,462 ¥

80,462

Balance at the end of current period

80,46280,462

Capital surplus
Balance at the end of previous period

106,184

105,055

Changes of items during the period

(115)

140

Total changes of items during the period

(115)

140

24

140

41,47752,912

Balance at the end of current period
Foreign currency translation adjustment

(4)

1,128

Balance at the end of previous period

(4)

1,128

Changes of items during the period

106,180

106,184

Retained earnings
466,780

402,431

Effect of changes in accounting policies applied toforeign subsidiaries

Net changes of items other than shareholders’ equity(51,525)(11,434)

Total changes of items during the period(51,525)(11,434)(10,048)

41,477794,171

1,210,704

Balance at the end of current period
Total valuation and translation adjustments(2,400)–Changes of items during the period
Dividends from surplus(0)

Net changes of items other than shareholders’ equity

Total changes of items during the period

Balance at the end of previous period

140

Changes of items during the period

Disposal of treasury stock
Balance at the end of current period

2008

Deferred gains or losses on hedges

Balance at the end of previous period
Changes of items during the period(19,318)(17,489)

Net changes of items other than shareholders’ equity(411,705)(416,533)

Increase in consolidated subsidiaries–(1,316)

Total changes of items during the period(411,705)(416,533)

Decrease in consolidated subsidiaries

–

(77)

382,466

794,171

Increase in change of scope of equity method

–

2,771

Net income (loss)(32,767)

80,460

Balance at the end of previous period

695

202

Total changes of items during the period(52,086)

64,349Changes of items during the period

412,294

466,780

Net changes of items other than shareholders’ equity

528

493

Total changes of items during the period

528

493

1,224

695

56,34558,878(2,532)

Balance at the end of current period
Treasury stock
Balance at the end of previous period(50,644)(47,253)

Changes of items during the period

Balance at the end of current period
Subscription rights to shares

Balance at the end of current period
Minority interests

Repurchase of treasury stock(41)(8,728)

Balance at the end of previous period

Disposal of treasury stock

12

5,337

Changes of items during the period

Total changes of items during the period
Balance at the end of current period(28)(3,390)Net changes of items other than shareholders’ equity(10,630)(50,672)(50,644)

Total changes of items during the period(10,630)(2,532)45,71556,345

1,453,996(2,400)1,810,483

Total shareholders’ equity

Balance at the end of current period

Balance at the end of previous period

602,783

540,696

Effect of changes in accounting policies(2,400)–applied to foreign subsidiaries

Balance at the end of previous period
Effect of changes in accounting policies applied to

Changes of items during the period
Dividends from surplus

Total net assets–

foreign subsidiaries(19,318)(17,489)

Increase in consolidated subsidiaries–(1,316)(19,318)(17,489)

Decrease in consolidated subsidiaries

–

(77)

Increase in consolidated subsidiaries–(1,316)

Increase in change of scope of equity method

–

2,771

Decrease in consolidated subsidiaries

–

(77)

(32,767)

80,460

Increase in change of scope of equity method

–

2,771

Repurchase of treasury stock(41)(8,728)Net income (loss)(32,767)

80,460

Disposal of treasury stock

8

6,466

Repurchase of treasury stock(41)(8,728)(52,118)

62,087

Disposal of treasury stock

8

6,466

548,264

602,783

Net changes of items other than shareholders’ equity(421,807)(418,573)(473,926)(356,486)

Net income (loss)

Total changes of items during the period
Balance at the end of current period
Valuation and translation adjustments

Dividends from surplus

Total changes of items during the period

Valuation difference on available-for-sale securities
Balance at the end of previous period

Changes of items during the period

Balance at the end of current period
752,553

1,157,793

Net changes of items other than shareholders’ equity(360,063)(405,239)

Total changes of items during the period(360,063)(405,239)

392,489752,553¥ 977,670 ¥1,453,996

Changes of items during the period

Balance at the end of current period

The accompanying notes are an integral part of these financial statements.

Toyota Industries Report 200951

Financial Section

Consolidated Statements of Cash Flows

Toyota Industries Corporation
For the years ended March 31, 2009 and 2008
Millions of yen

2009

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 unconsolidated subsidiaries and 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
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 acquisition of subsidiaries’ stock resulting in change in scope of consolidation
Payments for loans madeProceeds from collections of loans
Other, net
Net cash used in investing activities
Cash flows from financing activities:
Increase (decrease) 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
Other, net
Net cash provided by (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
The accompanying notes are an integral part of these financial statements.

52

Toyota Industries Report 20092008

¥ (23,247) ¥ 132,355
125,543
119,905
35,868
–
1,207
(365)
(50,458)(49,588)
19,77019,4533,130(2,749)61,870(6,623)
3,939(7,490)(93,949)
7,568(8,141)(6,777)75,534
205,687
50,43549,506(19,622)(19,318)(40,577)(47,069)
65,768
188,805(122,422)
10,991(4,982)
12,367(11)–(4,465)
5,126(10,820)(114,217)(135,561)
15,456(1,568)26,551(36,929)424(2,320)3,059(7,901)(138,789)

6,947
7,115
126,178
51,662(10,420)(10,210)
39,399–(20,000)(60,000)(41)(8,728)(19,318)(17,489)(1,310)(1,594)575–(1,038)5,252
120,971(33,992)(5,795)(3,309)66,727
12,714
121,284
108,569¥ 188,011 ¥ 121,284

Financial Section

Notes to Consolidated Financial Statements

1. Basis of presenting consolidated financial statements:
The accompanying consolidated financial statements have been
prepared based on the accounts maintained by Toyota Industries
Corporation (the “Company”) and its consolidated subsidiaries(together, hereinafter referred to as “Toyota Industries”) in accordancewith the provisions set forth in the Corporate Law of Japan and the

Financial Instruments and Exchange Law, and in conformity withaccounting principles generally accepted in Japan, which are different
in certain respects from the application and disclosure requirements ofInternational Financial Reporting Standards.

2. Summary of significant accounting policies:(1) Consolidation
The consolidated financial statements include the accounts of theCompany and its 160 subsidiaries (43 domestic subsidiaries and 117
overseas subsidiaries, which are listed on pages 38 and 39) as ofMarch 31, 2009, and 163 subsidiaries (45 domestic subsidiaries and
118 overseas subsidiaries) as of March 31, 2008.
For the year ended March 31, 2009, four subsidiaries were newly
added to the scope of consolidation and seven companies were
excluded from the scope of consolidation because of mergers andacquisitions as a result of reorganization.
For the year ended March 31, 2008, two subsidiaries were newly
added to the scope of consolidation and three companies were
excluded from the scope of consolidation because of liquidation, sales,
mergers and acquisitions. Additionally, 12 subsidiaries were newly
added to the scope of consolidation and 10 companies were excluded
from the scope of consolidation because of mergers and acquisitions
as a result of reorganization of the sales structure.
The fiscal years of certain subsidiaries are different from the fiscal
year of the Company. Since the difference is not more than threemonths, the Company is using those subsidiaries’ statements for
those fiscal years, making adjustments for significant transactions thatmaterially affect the financial position or results of operations.
All significant intercompany transactions, balances and unrealized
profits within Toyota Industries have been eliminated.
A full portion of the assets and liabilities of the acquired subsidiaries
is stated at fair value as of the date of acquisition of control.
In June 2009, Toyota Industries Sweden AB changed the company
name to Toyota Material Handling Europe AB.

(2) Equity method
Investments in 13 major affiliates in 2009 and 15 major affiliates in 2008
are accounted for by the equity method of accounting.
For the year ended March 31, 2009, two companies were excluded
from the scope of equity-method accounting because of transfer to thescope of consolidation.
For the year ended March 31, 2008, one affiliate was newly added tothe scope of equity-method accounting from the scope of consolidationand seven affiliates were excluded from the scope of equity-method
accounting because of transfer to the scope of consolidation, mergers
and a decline of holding shares.
Some of the affiliates are not accounted for under the equity method
since their net income/losses, retained earnings and other financial
amounts are immaterial.
The major affiliates accounted for by the equity method are listed on
page 39.

(3) Translation of foreign currencies
Foreign currency denominated receivables and payables are translated
into Japanese yen at the year-end exchange rates and the resulting
transaction gains or losses are included in the consolidated statements
of income.

All asset and liability accounts of foreign subsidiaries and affiliates
are translated into Japanese yen at year-end exchange rates andall revenue and expense accounts are translated at prevailing fiscal
average rates.

(4) Cash and cash equivalents
Cash and cash equivalents include all highly liquid investments,
generally with original maturities of three months or less, that are readily
convertible to known amounts of cash and are so near maturity thatthey present insignificant risk of changes in value because of changes ininterest rates.

(5) Marketable securities and investment in securities
Toyota Industries classifies securities into four categories by purpose ofholding: trading securities, held-to-maturity securities, other securities
and investments in affiliates. Toyota Industries did not have trading
securities or held-to-maturity securities as of March 31, 2009 and2008.
Other securities with readily determinable fair values are stated atfair value based on market prices at the end of the year. Unrealized
gains and losses are included in “Valuation difference on available-forsale securities” as a separate component of net assets. Cost of salesof such securities is determined by the moving-average method. Other
securities without readily determinable fair values are stated at cost, as
determined by the moving-average method.
Investments in affiliates are accounted for by the equity method (seeNote 2 (2)).
Investments in affiliates not accounted for by the equity method
are stated at cost due to their insignificant effect on the consolidated
financial statements.

(6) Inventories
Inventories are stated mainly at cost determined by the movingaverage method (the values on the consolidated balance sheets arecalculated through the write-down method based on the deteriorationof profitability).

(7) Property, plant and equipment, and depreciation(except for lease assets)
Property, plant and equipment are stated at cost. Depreciation
expenses of property, plant and equipment are computed mainly by
the declining-balance method for the Company and subsidiaries.
Significant renewals and additions are capitalized at cost. Repairs
and maintenance are charged to income as incurred.
In accordance with the revision of the Corporation Tax Act ofJapan, as a result of a review of the useful lives, Toyota Industries
revised the useful lives of tangible assets and applied the revision fromthe consolidated fiscal year ended March 31, 2009.
As a result, operating income decreased by ¥5,824 million andordinary income and income before income taxes and minority
interests decreased by ¥5,843 million, respectively.

Toyota Industries Report 200953

Financial Section

Notes to Consolidated Financial Statements(8) Intangible assets and amortization
Amortization of intangible assets is computed using the straight-line
method. Software costs for internal use are amortized by the straightline method over their expected useful lives (mainly five years).
Goodwill, if material, is amortized principally over less than 20
years on a straight-line basis, while immaterial goodwill is charged toincome as incurred.

(9) Lease transactions
The depreciation method of leased properties on finance leases thatare deemed to transfer the ownership of the leased properties tolessees is the same as those applied to properties owned by Toyota
Industries.
The depreciation method of leased properties on finance leases
other than those deemed to transfer the ownership of leased
properties to lessees is computed mainly by the straight-line method,which assumes zero residual value and the leasing term to be for theuseful life of the asset.
As for the finance leases other than finance leases deemed totransfer the ownership of leased properties to lessees, those thatcame into effect before March 31, 2008 (inclusive) will continue to beaccounted for by the former method (similar to the method applicableto ordinary operating leases).
Lease obligations previously included in “Other long-term
obligations” under “Long-term obligations” for the fiscal year ended
March 31, 2008 is listed as a separate component from the fiscal year
ended March 31, 2009. Lease obligations for the fiscal year ended
March 31, 2008 totaled ¥13,188 million.

(b) Hedging instruments and hedged items
Hedging instruments: Derivatives instruments (foreign currency
forwards, foreign currency swaps, foreign
currency option contracts and interest rate
swaps)
Hedged items:
Risk of change in interest rate on borrowings,
assets and liabilities and risk of change
in forward exchange rate on transactions
denominated in foreign currencies (borrowings,
assets and liabilities, and forecasted
transactions)(c) Hedging policy
Hedging transactions are executed and controlled based on Toyota
Industries’ internal policy and Toyota Industries is hedging interest raterisks and foreign currency risks. Toyota Industries’ hedging activities
are reported periodically to a director responsible for accounting.
(d) Method used to measure hedge effectivenessHedge effectiveness is measured by comparing accumulatedchanges in market prices of hedged items and hedging instruments
or accumulated changes in estimated cash flows from the inceptionof the hedge to the date of measurements performed. Currently it isconsidered that there are high correlations between them.
(e) Others
Due to the fact that counterparties to Toyota Industries represent
major financial institutions which have high creditworthiness, Toyota
Industries believes that the overall credit risk related to its financial
instruments is insignificant.

(15) Consumption tax(10) Method of accounting of deferred assets
As for bond issuance costs, the full amount is treated as an
expenditure at the time of payout.

(11) Allowance for doubtful accounts
Toyota Industries adopted the policy of providing an allowance for
doubtful accounts in an amount sufficient to cover possible losses
on collection by estimating individually uncollectible amounts andapplying to the remaining accounts a percentage determined bycertain factors such as historical collection experiences.

(12) Allowance for bonuses to directors and corporate
auditors
Bonuses to directors and corporate auditors are recorded on theaccrual basis with a related change to income.

(13) Allowance for retirement benefits
Toyota Industries accrues an amount which is considered to be
incurred in the period based on the estimated projected benefit
obligations and estimated pension assets at the end of the year. To
provide for the retirement benefits for directors and corporate auditors,
an amount which is calculated at the end of the year as required byan internal policy describing the retirement benefits for directors andcorporate auditors is accrued.

(14) Hedge accounting(a) Method of hedge accounting
Mainly the deferral method of hedge accounting is applied. In the caseof foreign currency forward contracts and foreign currency option
contracts, the hedged items are translated at contracted forward rates
if certain conditions are met.
As for the interest-rate swap contracts, which meet therequirements of preferential accounting method, the preferential
accounting method is applied.

54

Toyota Industries Report 2009

The consumption tax under the Japanese Consumption Tax Law
withheld by Toyota Industries on sales of goods is not included in theamount of net sales in the accompanying consolidated statements
of income, and the consumption tax paid by Toyota Industries under
the law on purchases of goods and services, and expenses is notincluded in the related amount.

(16) Accounting standards for finance leasetransactions
As for the accounting standards for finance lease transactions, net
sales and cost of sales are recognized when the lease payments arereceived.

(17) Income taxes
The provision for income taxes is computed based on the pretax
income included in the consolidated statements of income. The
asset and liability approach is used to recognize deferred tax liabilities
and assets for the expected future tax consequences of temporary
differences between the carrying amounts and the tax bases of assets
and liabilities.
Valuation allowances are recorded to reduce deferred tax assets
when it is more likely than not that a tax benefit will not be realized.

(18) Net income per share
The computation of basic net income per share is based on theweighted-average number of outstanding shares of common stock.
The calculation of diluted net income per share is similar to thecalculation of basic net income per share, except that the weightedaverage number of shares outstanding includes the additional dilution
from potential common stock equivalents such as subscription rights
to shares. Cash dividends per share shown in the statements ofincome are the amounts applicable to the respective years.

3. Changes in accounting policies and adoption of new accounting standards:
Accounting standards for measurement of inventories
Effective from the consolidated fiscal year beginning from April 1,
2008, the Company applies Financial Accounting Standard No. 9“Accounting Standard for Measurement of Inventories” issued on July
5, 2006 by the Accounting Standards Board of Japan.
Regarding with the measurement method, inventories are statedmainly at cost determined by the moving-average method (the values
on the consolidated balance sheets are calculated through the writedown method based on the deterioration of profitability).
As a result, operating income, ordinary income and income before
income taxes and minority interests decreased by ¥692 million,
respectively.

Practical solution on unification of accounting policies
applied to foreign subsidiaries for consolidated financial
statements
Effective from the consolidated fiscal year beginning from April 1,
2008, the Company applies Practical Issue Task Force No. 18 “Practical
Solution on Unification of Accounting Policies Applied to Foreign
Subsidiaries for Consolidated Financial Statements” issued on May
17, 2006 by the Accounting Standards Board of Japan.
As a result, operating income increased by ¥2,197 million, ordinary
income and income before income taxes and minority interests
increased by ¥2,213 million, respectively, and retained earnings at the
beginning of the consolidated fiscal year beginning from April 1, 2008
decreased by ¥2,400 million.

instead of by the former method, which was similar to that applicableto ordinary operating leases.
As a result, operating income, ordinary income and income
before income taxes and minority interests increased by ¥608 million,
respectively.
As for finance leases other than finance leases deemed to transfer
the ownership of leased properties to lessees, those that came into
effect before March 31, 2008 (inclusive) will continue to be accounted
for by the former method (similar to the method applicable to ordinary
operating leases).

Classification change in consolidated statements ofincomeEffective from the fiscal year beginning April 1, 2008, rental incomeof fixed assets, which was listed as a separate component of nonoperating income, is included in other non-operating income because
the amount is immaterial. Rental income of fixed assets in fiscal 2009was ¥1,061 million.

For the year ended March 31, 2008
Classification change in consolidated statements ofincomeEffective from the fiscal year beginning April 1, 2007, depreciation
expense, which was listed as a separate component of non-operating
expenses, is included in other non-operating expenses because theamount is immaterial. Depreciation expense in fiscal 2008 was ¥60
million.

Accounting standard for lease transactions
Effective from the consolidated fiscal year beginning from April 1,
2008, the Company applies Financial Accounting Standard No.
13 “Accounting Standard for Lease Transactions” (issued by the
Accounting Standards Board of Japan on June 17, 1993; latest
revision, March 30, 2007) and Implementation Guidance No. 16“Guidance on the Accounting Standard for Lease Transactions” (issued
by the Accounting Standards Board of Japan on January 18, 1994;
latest revision, March 30, 2007). In accordance with the Standard andthe Guidance, finance leases other than those deemed to transfer theownership of leased properties to lessees are accounted for mainly
by a method similar to that applicable to ordinary sales transactions,

Change in depreciation method for property, plant andequipment
As for property, plant and equipment acquired before April 1, 2007,
Toyota Industries applied the pre-revised depreciation method during
the fiscal year beginning April 1, 2007. Among these, property, plantand equipment for which the allowable limit on the depreciable
amount has been reached are to be depreciated evenly over five years
beginning from the following fiscal year.
As a result, operating income decreased ¥1,762 million andordinally income and income before income taxes decreased ¥1,763
million, respectively.

4. Marketable securities:(1) As of and for the year ended March 31, 2009:(a) Other securities with readily determinable fair value as of March 31, 2009 are as follows:
Millions of yen
Acquisition
cost

Securities with carrying amount exceeding acquisition cost:
StocksSubtotal
Securities with carrying amount not exceeding acquisition cost:
StocksSubtotal
Total

Carrying
amountDifference¥215,764
215,764¥873,947
873,947¥658,183
658,183

15,17915,179¥230,943

10,785
10,785¥884,732(4,394)(4,394)¥653,788(b) Other securities sold during the year ended March 31, 2009 are as follows:
Millions of yen
Proceeds

Realized gains

Realized losses¥12,368¥498¥3

Toyota Industries Report 200955

Financial Section

Notes to Consolidated Financial Statements(c) The carrying amount of securities (excluding held-to-maturity bonds which are included within securities with fair value) without readily
determinable fair values as of March 31, 2009 are as follows:
Millions of yen
Carrying amount

Other securities:
Domestic unlisted stocks excluding over-the-counter stocks
Money management funds
Negotiable certificate of deposit¥15,271
40,33818,500(2) As of and for the year ended March 31, 2008:(a) Other securities with readily determinable fair value as of March 31, 2008 are as follows:
Millions of yen
Carrying
amountDifference¥219,262
219,262¥1,472,631
1,472,631¥1,253,369
1,253,369

7,081
340
7,421
¥226,683

6,318
340
6,658
¥1,479,290

(763)
–
(763)
¥1,252,606

Acquisition
cost

Securities with carrying amount exceeding acquisition cost:
StocksSubtotal
Securities with carrying amount not exceeding acquisition cost:
StocksOthersSubtotal
Total(b) Other securities sold during the year ended March 31, 2008 are as follows:
Millions of yen
Proceeds

Realized gains¥6,567¥5,866

Realized losses–(c) The carrying amount of securities (excluding held-to-maturity bonds which are included within securities with fair value) without readily
determinable fair values as of March 31, 2008 are as follows:
Millions of yen
Carrying amount

Other securities:
Domestic unlisted stocks excluding over-the-counter stocks
Money management funds
Negotiable certificate of deposit¥27,021
25,211
15,4005. Inventories:
Inventories as of March 31, 2009 and 2008 consist of the following:
Millions of yen

Merchandise and finished goods
Raw materials
Work in process
Supplies
Total

2009
¥ 44,237
15,94130,500
11,482¥102,162

2008¥ 57,959
19,11635,873
11,683¥124,633

6. Property, plant and equipment:
Accumulated depreciation as of March 31, 2009 and 2008 is as follows:
Millions of yen

Buildings and structures
Machinery, equipment and vehicles
Tools, furniture and fixtures
Total

56

Toyota Industries Report 20092009
¥180,043
524,949
78,162¥783,154

2008¥159,862
468,784
75,233¥703,879

7. Long-term debt:(1) Long-term debt as of March 31, 2009 and 2008 consists of the following:
Millions of yen

2009
¥
–
15,00020,00050,00030,00020,00020,00030,00030,582
19,99226,0002,000
294,005
115,537(40,737)(11,292)¥621,088

2.15% bonds due 2008 without collateral
1.94% bonds due 2009 without collateral
1.91% bonds due 2010 without collateral
1.13% bonds due 2012 without collateral
1.03% bonds due 2012 without collateral
1.46% bonds due 2014 without collateral
1.01% bonds due 2010 without collateral
1.66% bonds due 2015 without collateral
0.49-2.65% medium-term notes due 2009-2014 without collateral
1.95% bonds due 2016 without collateral
1.72% bonds due 2018 without collateral
1.35% medium-term notes due 2014 without collateralLong-term loans payable
Lease obligations
Less: current portion of long-term loans payable
Less: current portion of lease obligations
Total

2008
¥ 20,000
15,00020,00050,00030,00020,00020,00030,00025,77519,991––
192,019–(26,506)–¥416,279(2) Annual maturities of long-term debt as of March 31, 2009 are as follows:
Millions of yen
Year ending March 31

Long-term debt

Lease obligations

2011
2012
2013
2014
2015 and thereafter
Total¥ 62,573
88,58575,09759,471
231,114¥516,842¥ 22,971
22,76626,08625,101
7,320¥104,245

Total¥ 85,544
111,351
101,183
84,573
238,435¥621,088

8. Investments in affiliated companies:
Investments in affiliated companies as of March 31, 2009 and 2008 are as follows:
Millions of yen

Investments in securities (stock)
Investments and other assets (others)

2009¥7,5203,434

2008¥7,4678,329

9. Assets pledged as collateral:(1) Assets pledged as collateral as of March 31, 2009 and 2008 are as follows:
Millions of yen

Investments in securities
Buildings and structures
Merchandise and finished goods
Inventories
Land
Total

2009
¥51,520
532
486
–
396
¥52,935

2008¥40,530
425
–
1,153
875
¥42,984(2) Secured liabilities as of March 31, 2009 and 2008 are as follows:
Millions of yen

Other current liabilities
Short-term loans payable
Long-term loans payable
Total

2009
¥23,056505
44¥23,6062008¥22,359
1,187
33¥23,579

Toyota Industries Report 200957

Financial Section

Notes to Consolidated Financial Statements

10. Allowance for retirement benefits:
Allowance for retirement benefits including the allowance for retirement benefits to directors (including managing officers) for the years ended March
31, 2009 and 2008 is as follows:
Millions of yen

2009¥5,460Allowance for retirement benefits to directors (including managing officers)

2008¥5,276

11. Contingent liabilities:
Toyota Industries is contingently liable for guarantees as of March 31, 2009 and 2008 as follows:
Millions of yen

2009
Guarantee forwards given by the Company
Guarantees given by consolidated subsidiaries

–
¥134

2008
¥402
324

12. Export discount bills:
Export discount bills as of March 31, 2009 and 2008 are as follows:
Millions of yen

Export discount bills

2009
¥158

2008
¥394

13. Net assets:
Under the Corporate Law of Japan, amounts equal to at least 10% of
the sum of the cash dividends and other external appropriations paidby the Company and its domestic subsidiaries must be set aside asa legal reserve until it equals 25% of capital stock. The legal reserve
may be used to reduce a deficit or may be transferred to capitalstock taking appropriate corporate action. In consolidation, the legal
reserves of the Company and its domestic subsidiaries are accounted

for as retained earnings.
The year-end cash dividend is approved at the Ordinary General
Meeting of Shareholders of the Company held after the close of the
fiscal year to which the dividend is applicable. In addition, interim cash
dividends may be paid upon resolution of the Board of Directors,
subject to limitations imposed by the Corporate Law of Japan.

14. Research and development expenses:
Research and development expenses, which are included in selling,
general and administrative expenses and manufacturing costs,

amounted to ¥33,646 million and ¥36,750 million for the years ended
March 31, 2009 and 2008, respectively.

15. Impairment losses:
The Company recorded impairment losses on property, plant andequipment for automobile parts of ¥25,709 million due to a decreasein production volume. The total amount was ¥8,170 million in Japanand ¥17,023 million in the United States.
Also, the Company recorded impairment losses on equipment formaterials handling equipment of ¥514 million due to a decrease inproduction volume in Japan.
The Company recorded impairment losses on property, plantand equipment of ¥10,159 million due to discontinuing production ofdesignated electronics parts in Japan.
By category of assets, impairment losses totaled ¥20,487 million
for machinery, equipment and vehicles, ¥10,448 million for buildings
and structures, ¥4,247 million for construction in progress, ¥580
million for tools, furniture and fixtures and ¥102 million for software.
The recoverable amount of assets is calculated based on net
selling price.

16. Derivative instruments:(1) Qualitative disclosure about derivatives(a) Contents of derivative instruments into which Toyota Industries
entered, policy with respect to entering into derivative instruments,
and purpose of using derivative instruments:
Toyota Industries uses foreign currency forward contracts,
foreign currency swaps and foreign currency option contracts
to hedge foreign currency risks on transactions denominated in

58

Toyota Industries Report 2009

foreign currencies (borrowings, assets and liabilities, and forecasted
transactions).
Toyota Industries also uses interest rate swap agreements to
reduce interest rate risks on borrowings, assets and liabilities.
The purpose of using derivative instruments is to reduce risk,
not to obtain earnings from exchanges or for speculative purposes.

(b) Contents of risks related to derivative instruments:
Interest rate swaps, foreign currency forward contracts and foreign
currency option contracts into which Toyota Industries entered
have risks of fluctuations in interest rates and in foreign currency
exchange rates. Due to the fact that counterparties to Toyota
Industries represent major financial institutions which have highcreditworthiness, Toyota Industries believes that the overall credit
risk related to its financial instruments is insignificant.

(c) Controls in place over transactions handling derivative instruments:
Hedging transactions are executed and controlled based on Toyota
Industries’ internal policy and Toyota Industries’ hedging activities
are reported periodically to a director responsible for accounting.

(2) Quantitative disclosure about derivatives(a) Foreign currency transactions as of March 31, 2009 are as follows:
Millions of yen
Notional
amountTransactions other thanmarket transactions

Foreign currency swap transactions
Payment SEK / Receipt USD
Payment YEN / Receipt USD¥16,892¥12,278

Over one year of
notional amount¥4,977¥7,410Fair value

Net unrealized
gain/loss¥14,220¥13,723¥(2,671)¥ 1,444

The fair value calculation method is based on the index price as of March 31, 2009.
The derivative instruments to which hedge accounting is applied were excluded from disclosure.
(b) Interest rate transactions as of March 31, 2009 are as follows:
Millions of yen
Notional
amountTransactions other thanmarket transactions

Interest rate swap transactions
Fixed rate payment / Floating rate receipt
Floating rate payment / Fixed rate receipt¥13,740¥ 971

Over one year of
notional amount¥9,237¥ 971

Fair value

Net unrealized
gain/loss¥13,508¥ 980¥(232)¥ 9

The fair value calculation method is based on the index price as of March 31, 2009.
The derivative instruments to which hedge accounting is applied were excluded from disclosure.
(c) Foreign currency transactions as of March 31, 2008
Toyota Industries omitted this information because hedge
accounting is applied to all of the derivative instruments into which
Toyota Industries entered.

(d) Interest rate transactions as of March 31, 2008
Toyota Industries omitted this information because hedge
accounting is applied to all of the derivative instruments into which
Toyota Industries entered.

17. Retirement benefits:(1) Outline of retirement benefit plans
The Company and its domestic subsidiaries maintain tax-qualified
pension plans, lump-sum indemnities plans and welfare pension fundplans, all of which are non-contributory defined benefit pension plans.
In addition, certain foreign subsidiaries maintain non-contributory
defined benefit pension plans.
Since 1987, the Company has been transferring the covering

percentages of its pension plan from its lump-sum indemnities plan to
its tax-qualified pension plan. As of March 31, 2009 and 2008, its taxqualified pension plan covers 50% of total plans. Also, the Company
established an employee retirement benefit trust. In April 2003, theCompany transferred a portion of the lump-indemnities plan to adefined contribution pension plan.

(2) Components of allowance for retirement benefits as of March 31, 2009 and 2008 are as follows:
Millions of yen

Benefit obligation
Plan assets
Unfunded benefit obligation
Unrecognized actuarial gains or losses
Unrecognized loss in prior service obligation
Net amount recognized on the balance sheets
Prepaid pension expenses
Allowance for retirement benefits

2009¥(139,954)
75,012(64,941)
30,491(163)(34,612)3,982¥ (38,595)

2008¥(149,465)
105,287(44,178)
7,668
267(36,242)5,584¥ (41,826)

Certain subsidiaries use the simplified method to determine benefit obligations. Prepaid pension expenses are included in other investments andother assets.

Toyota Industries Report 200959

Financial Section

Notes to Consolidated Financial Statements(3) Components of retirement benefit expenses for the years ended March 31, 2009 and 2008 are as follows:
Millions of yen

2009¥ 7,794
3,869(3,121)
57
638¥ 9,238

Service cost
Interest cost
Expected return on plan assets
Amortization of prior service obligation
Amortization of unrecognized actuarial gains or losses
Retirement benefit expenses

2008¥ 8,897
5,235(3,847)1,207(0)¥11,493Retirement expenses of subsidiaries which adopted the simplified method are included in service cost.

(4) Assumptions used for calculation of retirement benefits for the years ended March 31, 2009 and 2008 are as follows:
2009
Method of attribution of estimated retirement benefits
to periods of employee service: Straight-line method
Discount rate
Expected return on plan assets
Amortization period of prior service obligation

Amortization period of unrecognized actuarial gains
or losses

2.00%
3.00%
6–11 years

20 years

2008

2.00%
3.00%
6–11 years — Straight-line method over
the remaining service periodof employees
20 years — Straight-line method over
the average remaining
service period of employees(5) Plan assets relating to welfare pension fund under multiemployer pension plan:
Effective from the fiscal year beginning April 1, 2007, Toyota Industries applied a new method of disclosure of retirement benefits. Information
regarding the welfare pension fund under multiemployer plans as of March 31, 2009 is as follows.

As of March 31, 2008
Plan assets
Estimated benefit obligation
Variance

The Japan Society of Industrial
Machinery Manufacturers’ welfare
pension fund
¥ 83,238 million¥104,244 million¥ (21,006 million)

Other welfare pension funds¥150,411 million¥178,666 million¥ (28,254 million)

5.59%

4.61%

The Japan Society of Industrial
Machinery Manufacturers’ welfare
pension fund¥97,361 million¥99,244 million¥ (1,883 million)

Other welfare pension funds¥174,653 million¥166,460 million¥ 8,192 million

4.99%

4.47%

As of March 31, 2009
Toyota Industries Group contribution to welfare pension plan

As of March 31, 2007
Plan assets
Estimated benefit obligation
Variance
As of March 31, 2008
Toyota Industries Group contribution to welfare pension plan

(6) Additional note regarding retirement benefit
Effective from the fiscal year beginning April 1, 2007, Toyota Industries applied Implementation Guideline No.14 “Partial Revision No. 2 of
Accounting Standard for Retirement Benefit” issued on May 15, 2007 by the Accounting Standards Board of Japan.

18. Stock options:(1) Stock option expenses recorded in the fiscal year and class of options
Millions of yen

Selling, general and administrative expenses

2009
¥575

2008
¥493

(2) The amount recorded as a profit because of forfeitures of stock option rights
Millions of yen

2009
¥46

60

Toyota Industries Report 20092008–

(3) Stock option details, number of stock options and state of fluctuation(1) Stock option details
2009

2008

2007

Company name

The Company

The Company

The Company

Position and number ofgrantees

Directors: 17
Managing officers and employees: 159

Directors: 16
Managing officers and employees: 159

Directors: 17
Managing officers and employees: 152

Class and number of shares*

1,360,000 shares of common stock

830,000 shares of common stock

802,000 shares of common stock

Date of issue

August 1, 2008

August 1, 2007

August 1, 2006

1. Grantee must be employed as adirector, managing officer or regular
employee of the Company at the time of
exercise. However, this does not apply
if no more than 18 months have elapsed
after retirement or resignation from theCompany.

Same as left

Same as left

2. Other conditions of exercise shall bedecided as prescribed by the Contract
for Allotment of Subscription Rights toShares concluded by the Company andgrantee in accordance with resolutions at
the General Meeting of Shareholders andresolutions on the issue of subscription
rights to shares by the Board of Directors.

Same as left

Same as left

3. In the case where the grantee
becomes no longer applicable to theconditions of exercise, the grantee
immediately loses subscription rights toshares and must return the rights to theCompany without consideration.

Same as left–

Periods that grantees must
provide service in return forstock options

From August 1, 2008 to July 31, 2010

From August 1, 2007 to July 31, 2009

From August 1, 2006 to July 31, 2008

Periods that stock subscription
rights are to be exercised

Four years after determination of rights

Same as left

Same as left

Company name

The Company

The Company

The Company

Position and number ofgrantees

Directors: 30
Managing officers and employees: 134

Directors: 30
Managing officers and employees: 135

Directors: 30
Managing officers and employees: 128

Class and number of shares*

791,000 shares of common stock

775,000 shares of common stock

750,000 shares of common stock

Date of issue

August 1, 2005

August 2, 2004

August 1, 2003

1. Grantee must be employed as a director,
managing officer or regular employee of theCompany at the time of exercise. However,this does not apply if no more than 18
months have elapsed after retirement or
resignation from the Company.

Same as left

Same as left

2. Other conditions of exercise shall bedecided as prescribed by the Contract for
Allotment of Subscription Rights to Sharesconcluded by the Company and grantee inaccordance with resolutions at the General
Meeting of Shareholders and resolutions on
the issue of subscription rights to shares by
the Board of Directors.

Same as left

Same as left

Periods that grantees must
provide service in return forstock options

From August 1, 2005 to June 30, 2007

From August 2, 2004 to June 30, 2006

From August 1, 2003 to June 30, 2005

Periods that stock subscription
rights are to be exercised

Four years after determination of rights

Same as left

Same as left

Condition of settlement ofrights

2006

Condition of settlement ofrights2005

2004*Number of options granted by class are listed as number of shares.

(2) Number of stock options and state of fluctuation
Stock options are those outstanding in the fiscal year and are listed as the number of shares.
(a) Number of stock options
Non-exercisable stock options(shares)

Stock options outstanding at the end of the previous fiscal year
Stock options granted
Forfeitures
Conversion to exercisable stock options
Stock options outstanding at the end of the fiscal year2009–
1,360,000
2,000–
1,358,000

2008
830,000–
2,000–
828,000

2007
802,000––
802,000
–

2006
–
–
–
–
–

2005
–
–
–
–
–

2004
–
–
–
–
–

Toyota Industries Report 200961

Financial Section

Notes to Consolidated Financial Statements
Exercisable stock options(shares)

Stock options outstanding at the end of the previous fiscal year
Conversion from non-exercisable stock options
Stock options exercised
Forfeitures
Stock options outstanding at the end of the fiscal year

2009
–
–
–
–
–

2008
–
–
–
–
–

2007
–
802,000–
59,000743,000

2009¥3,410–421

2008¥5,866–682

2007¥4,642–759

2006
130,500–––
130,500

2005
13,600–1,600–
12,000

2004
2,000
–
2,000
–
–

2005
¥2,652
3,188
–

2004
¥2,074
3,350
–

2009
24.63%
4 years¥60/share
1.000%

2008
21.78%
4 years¥56/share
1.210%(b) Price of options
Exact yen amounts

Paid-in value
Average market price of the stock at the time of exercise
Fair value of options on grant date2006
¥3,306––(4) Methods for estimating fair value of stock options
The methods for estimating fair value of stock options granted for fiscal 2009 and 2008 are as follows:(a) Valuation methods used: Black-Scholes model(b) Principal basic values and estimation methods
Share price fluctuations *1
Projected remaining period *2
Projected dividend *3
Non-risk interest rate *4*1 Computed based on actual share prices during a four-year period (from August 2004 to July 2008) and (from August 2003 to July 2007)*2 Because of a lack of accumulated data and difficulty in making rational estimates, it is assumed the rights are exercised at the midpoint of the exercise period.
*3 Based on the year-end dividend for the fiscal years ended March 31, 2008 and 2007, respectively, and the estimated interim dividend on the grant date
*4 Yields on government bonds for the period corresponding to the projected remaining period(5) Method for estimating the number of confirmed stock option rights
Specifically, because of the difficulty in rationally estimating the number of expired rights in the future, a method has been adopted that reflects
actual past expirations.

19. Income taxes:(1) The significant components of deferred tax assets and liabilities as of March 31, 2009 and 2008 are as follows:
Millions of yen

Deferred tax assets:
Allowance for retirement benefits
Depreciation
Net operating loss carry-forwards for tax purposes
Accrued expenses
Securities
Trade receivables
Enterprise tax payable
Other
Subtotal
Less: valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Other securities
Depreciation
Land
Reserve for advanced depreciation
Reserve for special depreciation
Other
Total deferred tax liabilities
Net deferred tax liabilities

62

Toyota Industries Report 2009

2009

2008

¥ 16,509
14,683
8,833
6,520
3,791
1,316
–
18,577
70,232(25,348)
44,883¥ 16,576
5,206
2,712
8,198
3,163
992
1,830
11,32450,004(1,341)
48,663(260,677)(2,307)
(562)
(509)
(406)
(4,700)(269,164)¥(224,280)(499,760)(6,590)
(562)
(484)
(470)
1,975
(505,893)¥(457,230)

Net deferred tax liabilities consist of the following components on the consolidated balance sheets.
Millions of yen

Current assets — deferred tax assets
Investments and other assets — deferred tax assets
Current liabilities — deferred tax liabilities
Long-term liabilities — deferred tax liabilities
Net deferred tax liabilities2009¥ 16,600
11,578(249)(252,209)¥(224,280)

2008¥ 18,860
8,578(1,881)(482,787)¥(457,230)(2) Reconciliations of differences between the statutory rate of income taxes and the effective rate of income taxes
for the years ended March 31, 2009 and 2008 are as follows:
Statutory rate of income taxes
Addition (reduction) in taxes resulting from:
Dividends income and others permanently not recognized as taxable income
Other
Effective rate of income taxes

2009
39.9%

2008
39.9%

–
–
–

(5.4)
(0.9)
33.6%

Toyota Industries eliminated the line item for the year ended March 31, 2009 because it recorded a loss before income taxes and minority interests.

20. Leases:(1) Finance leases
As for finance leases other than finance leases deemed to transfer the ownership of leased properties to lessees, those that came into effect before
March 31, 2008 (inclusive) will continue to be accounted for by the former method (similar to the method applicable to ordinary operating leases).
1) Finance leases (as a lessee)(a) Pro forma information regarding the leased properties such as acquisition cost and accumulated depreciation, which are not reflected in theaccompanying consolidated balance sheets under finance leases as of March 31, 2009 and 2008 are as follows:
Millions of yen

Buildings and structures:
Acquisition cost equivalents
Accumulated depreciation equivalents
Buildings and structures net balance equivalents
Machinery and equipment:
Acquisition cost equivalents
Accumulated depreciation equivalents
Machinery and equipment net balance equivalents
Tools, furniture and fixtures:
Acquisition cost equivalents
Accumulated depreciation equivalents
Tools, furniture and fixtures net balance equivalents
Software:Acquisition cost equivalents
Accumulated depreciation equivalents
Software net balance equivalents
Total net leased properties

2009

2008

¥

¥

245
137
107

276
125
150

¥11,568
6,930
4,638

¥17,656
8,965
8,691

¥12,172
7,081
5,090

¥14,946
7,306
7,639

¥

¥

107
49
57
¥ 9,893

132
49
82¥16,564

Acquisition cost equivalents include the imputed interest expense portion because the percentage which is computed by dividing future minimum
lease payments by total balance of property, plant and equipment at year-end is immaterial.
(b) Pro forma information regarding future minimum lease payments as of March 31, 2009 and 2008 is as follows:
Millions of yen

Due within one year
Due after one year
Total

2009
¥ 4,421
7,801¥12,2222008¥ 6,134
13,741¥19,876

The amount equivalent to future minimum lease payments as of the end of the year includes the imputed interest expense portion because thepercentage which is computed by dividing future minimum lease payments by total balance of property, plant and equipment at year-end isimmaterial.

Toyota Industries Report 200963

Financial Section

Notes to Consolidated Financial Statements(c) Total lease payments and pro forma depreciation expenses for the years ended March 31, 2009 and 2008 are as follows:
Millions of yen

Lease payments
Pro forma depreciation expenses

2009¥4,918¥4,9182008¥5,997¥5,997

Pro forma depreciation expenses, which are not reflected in the accompanying consolidated statements of income, are computed mainly by
the straight-line method, which assumes zero residual value and the leasing term to be useful lives for the years ended 2009 and 2008, and areequivalent to the amount of total lease payments of the above.
2) Finance leases (as a lessor)(a) Information regarding leased properties such as acquisition cost and accumulated depreciation under finance leases as of March 31, 2009 and2008 is as follows:
Millions of yen

Machinery and equipment:
Acquisition cost
Accumulated depreciation
Total net leased property

2009

2008

¥7,8656,220¥1,645¥10,957
7,297¥ 3,660(b) Pro forma information regarding future minimum lease income as of March 31, 2009 and 2008 is as follows:
Millions of yen

2009
Due within one year
Due after one year
Total

2008

¥2,072
2,961¥5,033¥3,073
5,832¥8,906

Future minimum lease income under finance leases include the imputed interest income portion because the percentage which is computed by
dividing the total of future minimum lease income and estimated residual value by the total of future minimum lease income and estimated residual
value and the balance of operating receivables at the year-ends is immaterial.
(c) Total lease payments to be received and depreciation expenses for the years ended March 31, 2009 and 2008 are as follows:
Millions of yen

Total lease payments to be received
Depreciation expenses

2009¥2,157
1,695

2008¥2,543
2,239(2) Operating leases
1) Operating leases (as a lessee)
Pro forma future lease payments under operating leases as of March 31, 2009 and 2008 are as follows:
Millions of yen

Due within one year
Due after one year
Total

2009
¥ 8,818
34,229¥43,0482008¥ 9,143
43,762¥52,906

2) Operating leases (as a lessor)
Pro forma information regarding future minimum rentals under operating leases as of March 31, 2009 and 2008 is as follows:
Millions of yen

Due within one year
Due after one year
Total

2009
¥17,187
28,385¥45,5722008¥22,406
26,638¥49,044

21. Changes in net assets:(1) Common stock outstanding for the years ended March 31, 2009 and 2008:
SharesBalance at March 31, 2007
Increase
Decrease
Balance at March 31, 2008
Increase
Decrease
Balance at March 31, 200964

Toyota Industries Report 2009

325,840,640––
325,840,640––
325,840,640

(2) Treasury stock outstanding for the years ended March 31, 2009 and 2008:
SharesBalance at March 31, 2007
Increase due to repurchase of treasury stock in accordance with the resolutions at Board of Directors meeting
Increase due to acquisition from shareholders by share exchange
Increase due to purchase of odd stock
Decrease due to share exchange
Decrease due to exercise of stock options
Balance at March 31, 2008
Increase due to purchase of odd stock
Decrease due to exercise of stock options
Balance at March 31, 2009

13,765,165
2,000,000
26,00014,280(871,975)(682,400)
14,251,070
15,557(3,600)14,263,027(3) Subscription rights to shares outstanding for the years ended March 31, 2009 and 2008:
Millions of yen

2009¥1,224The Company

2008
¥695

(4) Dividends(a) Dividends paid for the year ended as of March 31, 2009
Resolutions

Ordinary General Meeting of Shareholders
held on June 20, 2008
Board of Directors meeting held on
October 30, 2008

Total dividends

Dividends per share

Class of shares

Millions of yen

Yen

Common stock¥9,970¥32

Common stock

9,347

30

Record date

Effective date

March 31,2008
September 30,
2008

June 23,2008
November 26,2008(b) Dividends with a record date in the fiscal year ended March 31, 2009 for which the effective date falls in the following fiscal year
Total dividends
Resolutions

Ordinary General Meeting of Shareholders
held on June 19, 2009Class of shares

Millions of yen

Common stock¥3,115

Source ofdividends

Retainedearnings

Dividends per share
Yen

¥10

Record date

Effective date

March 31,2009

June 22,2009

Record date

Effective date

March 31,2007
September 30,
2007

June 22,2007
November 26,
2007(c) Dividends paid for the year ended as of March 31, 2008
Resolutions

Ordinary General Meeting of Shareholders
held on June 21, 2007
Board of Directors meeting held on
October 31, 2007

Total dividends

Dividends per share

Class of shares

Millions of yen

Yen

Common stock¥8,738¥28

Common stock

8,751

28

(d) Dividends with a record date in the fiscal year ended March 31, 2008 for which the effective date falls in the following fiscal year
Total dividends
Resolutions

Ordinary General Meeting of Shareholders
held on June 20, 2008

Class of shares

Millions of yen

Common stock¥9,970Source ofdividends

Retainedearnings

Dividends per share
Yen

¥32

Record date

Effective date

March 31,2008

June 23,2008

22. Subsequent events:
In accordance with a resolution of the Board of Directors meeting held on February 19, 2009, the Company issued the 18th unsecured bonds asfollows:(1) Total amount of bonds to be issued(2) Issue price(3) Date of payment(4) Date of maturity(5) Interest rate(6) Redemption price(7) Appropriation of the raised fund

50,000 million yen
100 yen (par issuance for the stated value of 100 yen)
April 22, 2009
March 20, 20192.109% per annum
100 yen for the stated value of 100 yen
Allotted for redemption of bonds and capital investment of the Company

There were no subsequent events for the year ended March 31, 2008.

Toyota Industries Report 200965

Financial Section

Notes to Consolidated Financial Statements

23. Segment information:(1) Business segments
As of and for the years ended March 31, 2009 and 2008:
Millions of yen

2009

2008

¥ 755,924
18,465774,389¥ 969,226
26,026995,252

639,656
3,931
643,587

783,173
3,415
786,589

114,825
6,927
121,753

117,591
7,942
125,533

29,55646
29,603

66,264
7
66,271

Subtotal
Elimination of inter-segment transactions
Total

44,28921,531
65,821
1,635,154(50,902)¥1,584,252

64,28021,386
85,666
2,059,313(58,777)¥2,000,536

Operating costs and expenses:
Automobile
Materials Handling Equipment
Logistics
Textile Machinery
OthersElimination of inter-segment transactions
Total¥ 785,894
639,816
118,851
31,662
65,867(51,218)¥1,590,874¥ 953,734
746,747
121,303
61,97478,958(59,035)¥1,903,682¥¥

Sales:
Automobile
Outside customer sales
Inter-segment transactions
Materials Handling Equipment
Outside customer sales
Inter-segment transactions
Logistics
Outside customer sales
Inter-segment transactions
Textile Machinery
Outside customer sales
Inter-segment transactions
Others
Outside customer sales
Inter-segment transactions

Operating income (loss):
Automobile
Materials Handling Equipment
Logistics
Textile Machinery
OthersElimination of inter-segment transactions
Total
Assets:Automobile
Materials Handling Equipment
Logistics
Textile Machinery
OthersCorporate or elimination of inter-segment transactions
Total
Depreciation and amortization:
Automobile
Materials Handling Equipment
Logistics
Textile Machinery
OthersCorporate or elimination of inter-segment transactions
Total
Impairment losses:
Automobile
Materials Handling Equipment
Logistics
Textile Machinery
OthersCorporate or elimination of inter-segment transactions
Total
Capital expenditures:
Automobile
Materials Handling Equipment
Logistics
Textile Machinery
OthersCorporate or elimination of inter-segment transactions
Total

66

Toyota Industries Report 2009¥

(11,504)
3,770
2,901
(2,058)(46)
315(6,621)¥

41,51839,841
4,230
4,297
6,708
258
96,853¥ 354,661
580,945
192,977
8,959
74,842
1,115,047¥2,327,432¥ 434,952
601,299
187,064
17,811
81,342
1,643,115¥2,965,585¥¥

58,19551,291
10,098
1,264
4,692
−
¥ 125,543¥¥¥

25,194514––
10,159−35,86864,26857,083
14,543606
2,269−¥ 138,770

57,98746,609
9,012
1,310
4,985
–
¥ 119,905

¥
¥

–
–
–
–
–
–
–

50,14568,945
15,067
1,869
6,130
–
¥ 142,158

1. Business segments are divided by the type and nature of the product.
2. Main products of each segment are as follows:
Fiscal 2009
Automobile ...............................................Passenger vehicles, diesel and gasoline engines, car air-conditioning compressors, foundry parts, electronics components
Materials handling equipment ...................Counterbalanced lift trucks, warehouse trucks, automated storage and retrieval systems, truck mount aerial work platforms
Logistics ...................................................Transportation services, logistics planning, operation of distribution centers, collection and delivery of cash and management of sales proceeds,
secure storage, management, collection and delivery of corporate documents
Textile machinery ......................................Air-jet looms, water-jet looms, ring spinning frames
Others ......................................................Semiconductor package substrates

Fiscal 2008
Automobile ...............................................Passenger vehicles, diesel and gasoline engines, car air-conditioning compressors, foundry parts, electronics components
Materials handling equipment ...................Counterbalanced lift trucks, warehouse trucks, automated storage and retrieval systems, truck mount aerial work platforms
Logistics ...................................................Transportation services, logistics planning, operation of distribution centers, collection and delivery of cash and management of sales proceeds,
secure storage, management, collection and delivery of corporate documents
Textile machinery ......................................Air-jet looms, water-jet looms, ring spinning frames
Others ......................................................Semiconductor package substrates

3. Corporate assets included in corporate or elimination of inter-segment transactions consist mainly of cash and cash equivalents, short-term
investments and investments in securities held by the Company. Corporate assets were ¥1,182,062 million and ¥1,707,060 million as of March 31,
2009 and 2008, respectively.
4. Effective from the consolidated fiscal year ended March 31, 2009, the Company applies Practical Issues Task Force No. 18 “Practical Solution
on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements” issued on May 17, 2006 by the
Accounting Standards Board of Japan.
As a result, operating income increased by ¥2,197 million in the Materials Handling Equipment Segment.
5. In accordance with the revision of the Corporation Tax Act of Japan, Toyota Industries revised the useful lives of tangible assets and appliedthem from the consolidated fiscal year ended March 31, 2009.
As a result, operating income decreased by ¥5,008 million in the Automobile Segment, ¥388 million in the Materials Handling Equipment
Segment, ¥3 million in the Logistics Segment and ¥424 million in the Others Segment.

(2) Geographical segments
As of and for the years ended March 31, 2009 and 2008:
Millions of yen

2009

2008

¥1,066,635
93,3891,160,024¥1,343,041
132,206
1,475,248

193,884
1,875
195,760

265,571
2,185
267,756

272,108
6,087
278,195

327,7857,821
335,607

Subtotal
Elimination of inter-segment transactions
Total

51,624
6,139
57,763
1,691,744(107,491)¥1,584,252

64,137
7,630
71,7682,150,380(149,843)¥2,000,536

Operating costs and expenses:
Japan
North America
EuropeOthersElimination of inter-segment transactions
Total¥1,161,639
200,496
282,153
55,675(109,089)¥1,590,874¥1,393,225
264,232
327,674
66,633(148,083)¥1,903,682¥¥

Sales:
Japan
Outside customer sales
Inter-segment transactions
North America
Outside customer sales
Inter-segment transactions
EuropeOutside customer sales
Inter-segment transactions
Others
Outside customer sales
Inter-segment transactions

Operating income (loss):Japan
North America
EuropeOthersElimination of inter-segment transactions
Total
Assets:Japan
North America
EuropeOthersCorporate or elimination of inter-segment transactions
Total

¥

(1,614)(4,736)(3,957)
2,087
1,598(6,621)¥ 821,724
140,847
350,298
61,314
953,247¥2,327,432¥

82,022
3,524
7,933
5,134
(1,760)96,853¥ 906,548
165,525
356,570
71,882
1,465,058¥2,965,585

Toyota Industries Report 200967

Financial Section

Notes to Consolidated Financial Statements
1. Geographical segments are divided into categories based on their geographical proximity.
2. Significant countries or areas belonging to each segment are as follows:
Fiscal 2009
North America .........................................U.S.A., Canada
Europe ....................................................Sweden, Germany, France
Others .....................................................Australia, China, Brazil

Fiscal 2008
North America .........................................U.S.A., Canada
Europe ....................................................Sweden, Germany, France
Others .....................................................Australia, China, Brazil

3. Corporate assets included in corporate or elimination of inter-segment transactions consist mainly of cash and cash equivalents, short-term
investments and investments in securities held by the Company. Corporate assets were ¥1,182,062 million and ¥1,707,060 million as of March 31,
2009 and 2008, respectively.
4. Effective from the consolidated fiscal year ended March 31, 2009, the Company applies Practical Issues Task Force No. 18 “Practical Solution
on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements” issued on May 17, 2006 by the
Accounting Standards Board of Japan.
As a result, operating income increased by ¥729 million in North America and ¥1,467 million in Europe.
5. In accordance with the revision of the Corporation Tax Act of Japan, Toyota Industries revised the useful lives of tangible assets and appliedthem from the consolidated fiscal year ended March 31, 2009.
As a result, operating income decreased by ¥5,824 million in Japan.

(3) Overseas sales
For the years ended March 31, 2009 and 2008:
Millions of yen

Overseas sales:
North America
EuropeOthers
Total
Total sales
Ratio of overseas sales to total sales (%):
North America
EuropeOthers
Total

2009

2008

¥ 192,678
302,812130,503¥ 625,994¥1,584,252¥ 265,942
373,374
190,539¥ 829,855¥2,000,536

12.2%
19.1
8.2
39.5%

13.3%
18.7
9.5
41.5%

1. Geographical segments are divided into categories based on their geographical proximity.
2. Significant countries or areas belonging to each segment are as follows:
Fiscal 2009
North America .........................................U.S.A., Canada
Europe ....................................................Germany, France, Russia
Others .....................................................China, Australia, Brazil

Fiscal 2008
North America .........................................U.S.A., Canada
Europe ....................................................Germany, France, Russia
Others .....................................................China, Australia, Indonesia

3. Overseas sales are sales of the Company and its consolidated subsidiaries in countries and areas other than Japan.

24. Related party transactions:
The following transactions were carried out with related parties:(1) Sales of goods and services for the years ended March 31, 2009 and 2008 were as follows:
Millions of yen

Toyota Motor Corporation

2009¥563,665

2008¥710,976

Toyota Motor Corporation held 24.6% of the Company’s voting rights as of March 31, 2009. As for the sales of automobiles and engines, etc., theCompany offers prices on such products based on their overall costs, and negotiates conditions for each fiscal year, as per conditions on ordinarytransactions. The above transactions are carried out based on commercial terms and conditions. Transaction amounts exclude consumption taxes.

68

Toyota Industries Report 2009

(2) Purchase of goods for the years ended March 31, 2009 and 2008 were as follows:
Purchase of goods:
Millions of yen

Toyota Motor Corporation

2009¥405,1202008¥521,644

As for the purchase of parts of automobiles and engines, etc., the Company negotiates conditions for each fiscal year, based on offered prices ofsuch products, as per conditions on ordinary transactions. The above transactions are carried out based on commercial terms and conditions.
Transaction amounts exclude consumption taxes.

(3) Outstanding balances arising from sale/purchase of goods/services as of March 31, 2009 and 2008 are as follows:
Receivables from a related party:
Millions of yen

Toyota Motor Corporation

2009¥22,6922008¥30,282

Payable to a related party:
Millions of yen

Toyota Motor Corporation

2009¥22,678

2008¥49,571

The balance as of March 31, 2009 and 2008 includes consumption taxes.

25. Net income (loss) per share (EPS):
The basis of calculation for net income (loss) per share basic and net income per share diluted is as follows:
Millions of yen

Net income (loss) per share basic:
Net income (loss)
Net income not attributable to common shareholders(bonuses for directors and statutory auditors that are paid through appropriation)
Net income (loss) attributable to common shareholders
Weighted-average shares (thousand)Net income (loss) per share basic (exact yen amounts)
Net income per share diluted:
Weighted-average shares for diluted computation (thousand)Net income per share diluted (exact yen amounts)

2009

2008

¥ (32,767)–¥ 80,460–(32,767)
311,584¥ (105.16)

80,460312,467¥ 257.50

0–85¥ 257.43¥

Regarding with net income per share diluted, it’s not shown due to that it was loss number.

26. Net assets per share:
The basis of calculation for net assets per share is as follows:
Millions of yen

Net assets per share:
Total net assets
Amounts deducted from total net assets
Subscription rights to shares
Minority interests in consolidated subsidiaries
Net assets applicable to common stock at end of year
Outstanding shares of common stock at end of year used for the computation of net assets per share (thousand)Net assets per share (exact yen amounts)

2009

2008

¥ 977,670¥1,453,996

1,224
45,715
930,730
311,577¥2,987.16

695
56,345
1,396,955
311,589¥ 4,483.32

27. Cash and cash flows:
The relationship between the accounts in the consolidated balance sheet and the remaining balance of cash and cash equivalalents as of March
31, 2009 and 2008 are as follows:
Millions of yen

Cash and deposits
Deposits with a maturity of over 3 months to 1 year
Short-term investments (securities) which has the redemption within 3 months
Cash and deposits for business engaged in collection and delivery
Cash and cash equivalents

2009¥169,743(21)
58,838(40,549)¥188,011

2008¥115,557(35)
40,611(34,849)¥121,284

Toyota Industries Report 200969

Financial Section

Report of Independent Auditors

Report of Independent Auditors

To the Board of Directors of Toyota Industries Corporation

We have audited the accompanying consolidated balance sheets of Toyota Industries Corporation (“theCompany”) and its subsidiaries as of March 31, 2009, and the related consolidated statements of income,changes in net assets and cash flows for the year then ended, all expressed in Japanese yen. These
consolidated financial statements are the responsibility of the Company’s management. Our responsibility
is to express an opinion on these consolidated financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in Japan. Thosestandards require that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audit provides a reasonablebasis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material
respects, the financial position of the Company and its subsidiaries as of March 31, 2009, and the resultsof their operations and their cash flows for the year then ended in conformity with accounting principles
generally accepted in Japan.
As described in Note 2(7) to the consolidated financial statements, in accordance with the revision of
the Corporation Tax Act, as a result of the review over the useful lives, the Company and its subsidiaries
revised the useful lives to the tangible assets and applied the revision from the consolidated fiscal year
ended as of March 31, 2009.

July 10, 200970

Toyota Industries Report 2009

Financial Section

Investor Information(As of March 31, 2009)

Corporate Head Office

Number of Shareholders

TOYOTA INDUSTRIES CORPORATION

22,5502-1, Toyoda-cho, Kariya-shi, Aichi, 448-8671, Japan
Telephone: +81-(0)566-22-2511

Independent Accountants

Facsimile:

PricewaterhouseCoopers Aarata+81-(0)566-27-5650

Shin-Marunouchi Bldg., 32nd Floor
1-5-1, Marunouchi, Chiyoda-ku, Tokyo, 100-6532, Japan

Date of Establishment
November 18, 1926

Common Stock

Transfer Agent
Special Account Management Institution

No par value

Mitsubishi UFJ Trust and Banking Corporation

Authorized: 1,100,000,000 shares

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

Issued:325,840,640 shares

Stock Exchange Listings
Tokyo, Osaka and Nagoya (Ticker Code: 6201)

Major Shareholders (Top 10) (As of March 31, 2009)

Toyota Motor Corporation

Number of
Shares Held (Thousands)

Percentage ofTotal Shares in Issue (%)

76,60023.51

DENSO Corporation

29,647

9.10

Third Avenue Fund-Custodial Trust Company

18,576

5.70

Towa Real Estate Co., Ltd.

15,697

4.82

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

9,068

2.78

Toyota Tsusho Corporation

8,289

2.54

Japan Trustee Services Bank, Ltd. (Trust Account 4G)

8,177

2.51

Japan Trustee Services Bank, Ltd. (Trust Account)

6,975

2.14

Nippon Life Insurance Company

6,735

2.07

Aisin Seiki Co., Ltd.
Total

6,578

2.02

186,347

57.19

Notes:
1. Toyota Industries Corporation also holds 14,263 thousand shares of treasury stock but is excluded from the above list.
2. Shares held for the purpose of trust services of respective banks are as follows:
Third Avenue Fund-Custodial Trust Company
18,576 (Thousands)
The Master Trust Bank of Japan, Ltd. (Trust Account)
9,068
Japan Trustee Services Bank, Ltd. (Trust Account 4G)
8,177
Japan Trustee Services Bank, Ltd. (Trust Account)
6,975

Distribution of Shares(As of March 31, 2009)

0.3%
4.4%
8.3%

19.3%

As of
March 31,
2009

46.0%

Japanese corporate entities
Japanese financial institutions
Foreign corporate entities and others
Individuals, etc.
Treasury stock
Japanese brokerages

21.7%

Toyota Industries Report 200971

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 on FSC-certified paper that contributes to forest conservation
with ink derived from soybeans using a waterless printing process.
Printed in Japan