Strategies and Businesses

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Top Message

Steadily Carry Out Growth Strategies
by Leveraging the Strengths ofEach Business Field

1. Review of Fiscal 2021
Top Message

P. 12–17

Taking the Initiative for GrowthP. 18–25

1. Contributing to Logistics Efficiencies of Customers by Providing Support throughout the
Logistics Lifecycle
2. Contributing Both in Terms of Product Development and Production to the Establishment ofa Carbon Neutral Society

Business Activities

P. 26–38

Top Message

2. Medium-Term Growth Scenario

Seeking Further Growth in an
Environment of Lingering Uncertainty
by Building a Robust Corporate
Structure and Regarding Drastic Social
Changes as Growth Opportunities
This section presents Toyota Industries’ efforts
to overcome the COVID-19 pandemic andachieve further growth.

Akira Onishi President

12

Toyota Industries Report 2021

In fiscal 2021, COVID-19, which has become a global phenomenon,
repeated the cycle of expanding infections and winding down, and thisdifficult situation is likely to continue around the world with the exceptionof a few countries. I would like to take this opportunity to extend mycondolences to people who have lost their lives to the pandemic and wish
for an early recovery of those who are suffering from COVID-19.
Looking back over the past year, Toyota Industries was struck hardby the pandemic and fell into the red in the first quarter but succeededin getting on a track to recovery in and after the second quarter. I believe
this was made possible because we maintained our Group-wide profit
improvement activities that started from well before the pandemic andworked to resume business activities on a full-scale in keeping with arecovery in the market. Observing market trends and the post-COVID-19
world, we need to determine which initiatives to retain, accelerate or undo
and adapt to “new normal” work styles.

Operational test of a control system conducted
remotely at Vanderlande

Providing work instructions to overseas servicing staff
remotely from Japan in the Textile Machinery BusinessIn order to achieve growth over the medium term, it is essential to keep oureyes on changes in the market and make sure to seize growth opportunities.
Specifically, we regard two growth fields as having great potential. One
is the Materials Handling Equipment Business encompassing logistics
solutions to respond to changes in lifestyles, including more widespreaduse of e-commerce, and labor shortages. The other is responding toelectrification in the automobile and other sectors. In these two growthfields, we will accurately capture changes in customer needs, leverage ourstrengths and turn them into business opportunities. The following highlights
our major efforts in this regard.

Efforts in the Materials Handling Equipment Business
An increase in logistics volume is likely to continue with an expected
post-pandemic recovery of the world economy and an expansion of
e-commerce. In the logistics industry, labor shortages and a rise in laborcosts are driving an increase in needs for mechanization and automation oflogistics operations. These trends are expected to accelerate further, as new
lifestyles and social distancing practices will become more prevalent as aresult of COVID-19.
Under these circumstances, lift trucks and logistics solutions will playincreasingly important roles. Demand for lift trucks is expected to remainstrong due to their versatility. Along with expanding sales further, we will aim
to contribute to customers throughout our entire value chain, including

13

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Top Message

after-sales services. As for a
Toyota Industries’ Products Used at Various Logistics Sites
rise in needs for even greater
Automated storage
and retrieval
efficiencies in distribution
systemSeaportcenters, which has been
High-speed
storage anddriven by an expansion
pickingsystemManufacturing sitesof e-commerce, three
Simple AGV
companies in the Logistics
Distribution center
CROSSBELT
Solutions Business, namely
SORTERAGV for containers
Large internal- Truck loader/
Bastian, Vanderlande andcombustion
unloaderlift truck
Toyota Industries, arecollaborating to bolster
Autonomous
baggagebusiness. The effort ishandling system
beginning to bear fruit asElectric low lift truck
evidenced by an increase
Airportin new orders in recent
years. As one example ofthis collaboration, a system
Electric
Airport baggage
Electric lift truck
Fuel cell lift truck
Reach-type
towing tractor
handling systemelectric lift truckof Vanderlande has been
adopted in a state-of-the-art
distribution center established in Japan by a leading international logistics
and parcel service operator.
We will make an accurate response to a broad range of customer
needs by leveraging a wealth of know-how accumulated in dealing withcustomers worldwide as the top player in the lift truck market as well as
synergies with logistics solutions.
In the Lift Truck Business, there has been a delay in acquiring
A system of Vanderlande introduced in Japancertification from the environmental authority in the United States for engines
to be fitted in certain models of internal-combustion lift trucks manufactured
at a plant in the country (as of June 30, 2021). In 2021, we suspended their
shipment and production in January and June, respectively. We offer oursincere apologies for the inconvenience and concern we have caused toour stakeholders. We are making our utmost efforts to resume shipment,
including providing relevant information to the authority, and appreciate yourunderstanding regarding the matter.

Responding to Electrification
In the future, electrification is expected to gain momentum in a variety offields due to the enforcement of more stringent fuel efficiency regulations
and growing energy-saving awareness among customers. Amid thisenvironment, Toyota Industries will make maximum use of our technologies
in the materials handling equipment and automobile-related fields andincrease our competitive edge by encouraging collaboration among
these fields.

14

Toyota Industries Report 2021l Electrification of Materials Handling Equipment(Lift Trucks and Others)
Electrification of lift trucks started much earlier than automobiles, and morethan 70% of our annual lift truck sales are already electric. These lift trucks
are used mainly in distribution warehouses and food manufacturing factories
as they emit no exhaust gas and are quiet to operate. We are working toincrease the appeal of our products by developing motors, controllers andother key components internally. We will also augment the development ofhigh value-added products. One such product is a lift truck equipped withlithium-ion batteries that enable continuous operation thanks to a shorter
Lift truck equipped with lithium-ion batteries
charging time. Another is a fuel cell lift truck with excellent environmental
performance, not emitting CO2 or NOx while in operation. Through these
efforts, we aim to remain a leader in the market with the electrification ofmaterials handling equipment.
l Car Electrification
With the progress of car electrification, electric vehicles have becomea frequent topic of conversation in our society. However, from a global
perspective, we expect demand for various types of electrified vehicles
Fuel cell lift truck
to increase, not just for battery electric vehicles (BEVs) but also for hybrid
electric vehicles (HEVs), plug-in hybrid
Expansion of Business Field by Leveraging Core Technologies
electric vehicles (PHEVs) and fuel cellelectric vehicles (FCEVs), depending on
Cooling batteries andExpand into heating
electronic devices
functions and coolingthe market characteristics in each region
components
and usage by customers. We will respond
Utilize our strengths
Expand businessof high efficiency
to car electrification by providing products,
field into drive
and reliability
which can be adopted in a broad range oftrain components
Vehicle interior heating
electrified vehicles, in the fields of car airApply
our coresEVcompression technology/Bs
conditioning compressors and electronic
V
HE
rP
VehicleFo
components.
interior cooling
For example, in the field of car airImpellersEV
conditioning compressors, we are
Installed in new MIRAI FCEV
s/H
e
l
ic
eh
nv
expanding sales of electric compressors
stio
u
b
om
to automakers across the world. With
l-c
rna
e
t
Hydrogen
Oxygen-supplyingr in
the emerging need to cool batteries, weFocirculation pump
air compressor
Turbocharger
see great growth potential in this field,
including components for drive systems.
In the electronics field, there has been a rise in demand from the perspectiveof social infrastructure for AC inverters as an emergency power source.
Combined with the RAV4 PHV’s system to feed power externally, we seek toincrease their use in evacuation shelters and similar locations. For on-board
batteries, we have accumulated a variety of knowledge through many yearsof research and development. This is a fiercely competitive sector, but wewill turn it into another growth pillar, following materials handling equipment
Disaster prevention drill using AC inverter’s external powerand car air-conditioning compressors, by offering batteries with uniquefeeding systemcharacteristics and a high competitive edge.

15Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Top Message

3. Future Direction of Management
Changes in the External Environment
Even though there are many views on the post-pandemic society, no one
knows for sure what it will be like. However, we have already witnessed
several changes in how we live and work.
The transformation of society and lifestyles is expected to continue into
the future, and changes that relate to our businesses include an increasein online transactions as seen in the further expansion of e-commerce.
Additionally, environmental initiatives will be of even greater importancefor companies, as green investments are spreading in an unprecedented
scope. We also expect the progress in digitalization will entail changes in
the industry structure.

Our Response
In responding to drastic changes, it will be crucial, more than anythingelse, to place top priority on safety while thoroughly ensuring quality,
compliance and other basic matters.
As for quality, we will strive for an even higher level of quality by utilizing
advanced technologies based on digital transformation (DX) on top of ourongoing efforts to maintain and improve quality. For example, we have newly
developed AI to predict product defects in the aluminum die-casting process
Motor housing for an electric compressor
manufactured by aluminum die-castingfor car air-conditioning compressors and are now exploring its applications
in further improving quality and productivity. In the future, we will leveragesuch digital technologies to transform our operations and business models.
After thoroughly ensuring basic matters such as these, it will be
important to proceed with the creation of a flexible and lean organizationin order to capture the aforementioned changes in society as new growth
opportunities. We will channel our management resources into focusedareas and leverage our own strengths to constantly create innovative
products and services.
Our basic approach to promoting these efforts is to provide products
Founder Sakichi Toyoda
and services that are needed by customers and are
helpful to society, as embraced in the Toyoda Precepts
Toyoda Precepts (Corporate Creed)(corporate creed). This stance will remain unchanged.
Carrying out the spirit of founder Sakichi Toyoda,
Besides observing laws and regulations, another• Always be faithful to your duties, thereby contributing to the
crucial element in ensuring corporate governance
Company and to the overall good.
is that everyone, from top management to individual• Always be studious and creative, striving to stay ahead of
the times.
employees, respects the culture of each region and• Always be practical and avoid frivolousness.
understands and trusts each other. We need to do• Always strive to build a homelike atmosphere at work that iswarm and friendly.
more than just establishing a governance system• Always have respect for God, and remember to be gratefulfor the sake of formality, but rather render it actuallyat all times.
functional and effective. As such, our continued aim is

16

Toyota Industries Report 2021

to operate the system in a manner to further improve the efficiency, fairness
and transparency of management. With regard to our relationships withcompanies in the Toyota Group, we will continue to reinforce collaborationin various ways to survive the difficult environment, since competition isincreasingly intensifying in the automobile industry and automobile-related
businesses form the core of our monozukuri (manufacturing).
Environmental protection is a theme of growing importance for
manufacturers, including Toyota Industries. We will continue to focus on
this area under the Global Environmental Commitment and in accordancewith the Environmental Vision 2050 and the newly formulated Seventh
Environmental Action Plan. (See pages 64–65.) In the “Responding toElectrification” section of this message, I have explained about electrificationin the lift truck, car air-conditioning compressor and electronics productsectors. However, our environment-friendly products, such as electrified
or fuel-efficient products, actually cover every sector of our businesses.
As examples, in the Vehicle Business, more than half of the RAV4
manufactured by Toyota Industries are HEVs and PHEVs. In the Engine
Business, we also manufacture gasoline engines for HEVs. Our textile
machinery products, which form our founding business, are renowned fortheir energy-saving performance. In the future as well, we will continue tofulfill our role as a manufacturer in protecting the global environment. (See
Special Feature 2 “Contributing Both in Terms of Product Development andProduction to the Establishment of a Carbon Neutral Society” on pages
22–25 for our environment-friendly products.)

4. In Conclusion

Environmental Vision 2050 under the
Global Environmental Commitment(1) E stablishing a carbon neutral
society(2) E stablishing a recycling-basedsociety(3) R educing environmental risk andestablishing a society in harmony
with nature(4) P romoting environmental
management

RAV4 PHV

Gasoline engine for HEVs

Since we were founded in 1926 to manufacture and sell an automatic
loom invented by founder Sakichi Toyoda, we have attained sustainablegrowth by adapting our business portfolio to changes in society andcustomer needs and accordingly extending our reach in the automobilerelated and materials handling equipment fields. The idea underpinning our
growth basically aligns with the environmental, social and governance(ESG) concept and the United Nations’ Sustainable Development Goals(SDGs) in that we seek to respond to social issues from a long-term
perspective.
To date, we have endeavored to develop a variety of competitive
products and accumulate technologies and know-how. We have also built
relationships of trust with our stakeholders, including business partners
and customers, as we engage with them from a long-term perspective.
Capitalizing on these tangible and intangible assets, we intend tostrengthen business even further in order to attain growth over the
medium to long term.

17Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Taking the Initiative for Growth – 1

Taking the Initiative for Growth – 1

Contributing to Logistics Efficiencies of Customers by
Providing Support throughout the Logistics Lifecycle
The needs for automation and labor saving in logistics operations are growing, driven mainly by a higher
logistics volume on the back of an expanding world economy and a growth in e-commerce transactions aswell as by the spread of COVID-19. Toyota Industries’ Materials Handling Equipment Business provides
support throughout the value chain encompassing from the sales of lift trucks and other materials handlingequipment to the provision of after-sales services. Leveraging the comprehensive strengths of engaging in the
Lift Truck Business and Logistics Solutions Business, we are striving to assist customers in attaining greater
logistics efficiencies.

Importance of Logistics andMarket Growth Potential

In acting as a lubricant for economic activities, logistics havecome to play an important role in our daily lives.
Recently, logistics volume has been progressively
increasing year after year marked by a rising global
population and expanding economies. With the growth ofthe e-commerce market, the trend toward a higher logistics
volume is expected to continue for the foreseeable future. In
addition, a labor shortage in developed countries and asurge in labor costs mainly in emerging countries have
converged to drive a further increase in needs for greater
logistics efficiencies.

Offering Support throughout
the Logistics Lifecycle

World e-Commerce Market*1(US$ billion)
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
(FY)

15

16

17

18

19

20

*1: P
 roduced by Toyota Industries based on “Study Report on a Structural Analysis of
the ICT Industry in the IoT Era and Verification of ICT’s Multifaceted Contribution to
Economic Growth,” Japan’s Ministry of Internal Affairs and Communication (2016)

It is important to conduct proper maintenance on materials
handling equipment and systems and keep them in
optimum operating condition to maximize the efficiency oflogistics sites. Toyota Industries has in place a structure that
customers can rely on by establishing extensive sales andservice networks throughout the world and assigning highly
skilled staff.
Moreover, we leverage the know-how nurtured byresponding to various needs required at global logistics sites
and propose the most advantageous solutions for logistics
improvements for each and every customer.
In the future as well, we are committed to contributing tobetter logistics efficiencies by offering support to customers
throughout the logistics lifecycle extending from after-sales
services to fleet management and preventive maintenanceutilizing IT technologies, lift truck leasing, consulting forlogistics improvements and other logistics solutions.

Research &Development• Ahead of the times• Customer needs• Performance• Ecology• Design

Aftersales services• Customer first• Worldwide• Professional
excellence• Genuine parts• Best practices

Production• Toyota
Production
System (TPS)• Kaizen(improvement)• Environmental• Just-in-time• Jidoka(automation)

Product

Business solutions• Fleet management• Rental• Used• Sales financing• Logistics• Quality• Safety• Durability• Efficiency• Innovative• Recyclable

Strengths of Toyota Industries’ Materials Handling Equipment Business
Lift Truck Business
Product differentiation on the back of key
components developed in-house

Utilization of IT technologies for fleet
operation management and more efficientand sophisticated services

Proposals for improvements at logistics sites
based on long-accumulated experience andToyota Production/Logistics Systems

Broad product lineup, including global
top-share*2 lift trucks

Globally extensive sales andservice networks

Customer support throughout the lifecycleof products

Highly experienced andskilled service staff

Logistics Solutions Business
Collaboration with the Lift Truck Business,
which boasts a top market share*2
Synergistic effects through acomplementary relationship among Toyota
Industries, Bastian and Vanderlande

Extensive product lineup andexcellent softwaredevelopment competence

Business structure extending
throughout the world
Well-balanced sales composition in suchsectors as e-commerce, parcel andairport-related businesses

The following pages introduce case examples in which we leveragedthese strengths to successfully contribute to greater logistics efficiencies of customers.
*2: Survey by Toyota Industries Corporation

18

Toyota Industries Report 2021

19

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Taking the Initiative for Growth – 1

Case
Example1

Providing a Stable and Efficient Logistics Environment
through Extensive After-Sales Services

One of Toyota Material Handling Japan’s (TMHJ) strengths lies in its ability to render solid support tocustomers’ logistics environments through comprehensive after-sales services provided by highly experienced
and skilled service staff. Offering full maintenance services, including preventive maintenance, contributes toavoiding unexpected breakdowns and realizing customers’ stable and efficient logistics operations.

Entrusted with Lift Truck Management

One of the strengths of Sobu Logistics Corporation is tooperate six distribution center warehouses and 40 truck
terminals that enable products to be delivered on thefollowing day of orders placed.
Lift trucks play a critical role of delivering products
to customers in the optimum condition on time. At theNoda Delivery Center, where an average of 1,200 tons ofKikkoman products are shipped every day, approximately
40 lift trucks are in use for loading/unloading operations.
Including lift trucks used at other distribution center
warehouses, Sobu Logistics possesses more than 100 lift
trucks. With numerous lift trucks in operation, the company
had been faced with lift truck management issues such as

20

Case
Example2

Utilizing Telematics Functions to Increase Safety and Reduce Costs

Improvements in information and communication technology have advanced the use of the Internet of Things (IoT) in
society. As such, the role of telematics technologies in the fleet management of lift trucks has become increasingly
important. Toyota Material Handling Europe’s (TMHE) Toyota I_Site fleet management system harnesses cutting-edge
technologies and the know-how cultivated through various improvement activities to make it possible to comprehend
the operating status of lift trucks in real time and establish a safe and reliable logistics environment.

Sobu Logistics Corporation

Danske Fragtmænd

Sobu Logistics Corporation is responsible
for logistics operations in Japan for the
Kikkoman Group, which manufacturesand sells condiments and processed
foods. The company is consigned toprovide comprehensive logistics
operations, from receiving orders topurchasing products, of Kikkoman
Corporation and Kikkoman Foods, Inc.

Danske Fragtmænd is Denmark’s largest
logistics operator boasting more than a
100-year history. With more than 40,000
business customers, the company offers
high-quality logistics services including
next-day deliveries anywhere in the
country.

arranging for repairs in times of unexpected breakdowns,
incurring high maintenance costs and keeping track of thenumber of lift trucks required at any given time.
TMHJ conducted a multifaceted study on operating
hours, traffic lines and other aspects of Sobu Logistics’ lift
trucks and proposed an optimum logistics environment,
which resulted in Sobu Logistics entrusting TMHJ with the
management of all their lift trucks. Providing full maintenanceservices, including preventive maintenance, has contributed
to decreasing unexpected breakdowns of lift trucks andreducing or leveling out maintenance and management
costs. This has made it unnecessary to retain backup lift
trucks, thereby reducing the total number of vehicles.

Responding to Stringent Safety
Requirements and Offering Support toCustomers

With an ever-increasing package volume for delivery, Danske
Fragtmænd is striving to ensure the safety of its lift truck
operators. Approximately 40 lift trucks are in operation
within a limited space at their warehouse in Taulov, and thecompany wanted to reduce impacts between lift trucks andracks or loads, or collisions between lift trucks. To resolve
this issue, TMHE made a proposal to utilize Toyota I_Site
to raise safety awareness among lift truck operators andreduce accidents.
Should an accident occur, the fleet management system
makes it possible to identify the date and the pattern of[Customer’s Voice][I_Site Manager’s Voice]In our business, we tend to place an extra load on
our lift trucks, but we find Toyota lift trucks very
reliable. TMHJ service staff quickly arrive when weneed them, make proposals for an appropriate
model and the number of lift trucks corresponding tochanges in our operating situation and makerecommendations for the proper timing of truck
replacements. In these and other ways, we are
extremely satisfied with TMHJ’s swift response.

The customer has been greatly benefiting from theintroduction of Toyota I_Site. When an accident has
occurred, the customer can easily identify which lift
truck and which operator was involved, allowing
them to quickly make appropriate responses. Suchincidents are also recorded in the system, whichmakes it easier to instruct operators to practice safe
driving.

Toyota Industries Report 2021

Mr. Hiroshi Tobe

Mr. Søren Vester

President
Sobu Logistics Corporation

I_Site Manager
Toyota Material Handling Denmark

the impact as well as which lift truck was involved and thedriver. The system also evaluates each operator’s operationfrom safety and environmental aspects, such as hardbraking, sudden acceleration and other reckless driving
practices as well as the fuel consumption status, thereby
contributing to increasing the safety awareness of operators.
In addition, Toyota I_Site helps the company to reducemanagement costs by understanding the operational statusof each lift truck in detail in real time, which in turn enables
the optimization of the number of lift trucks needed for its
logistics operations.

21

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Taking the Initiative for Growth – 2Taking the Initiative for Growth – 2

Contributing Both in Terms of Product Development andProduction to the Establishment of a Carbon Neutral Society

Reducing CO2 Emissions in Product Development
Toyota Industries develops products with excellent environmental performance by sharing and encouraging the evolution oftechnologies and know-how of each business, mainly the Materials Handling Equipment Business and the automobile-related
businesses.
This section highlights our efforts related to electrification, which is key to developing products that can reduce CO2 emissions.

Environmental Vision 2050

As one tenet under our Basic Philosophy, Toyota Industries works to contribute to
making the earth a better place to live and enriching lifestyles and also strives to offer
products and services that are clean, safe and of high quality. Accordingly, we haveestablished the Global Environmental Commitment, a specific environmental action
guideline, and have been sharing and implementing it throughout the Toyota
Industries Group.
We recognize that contributing to the establishment of a carbon neutral society is
an important issue under the commitment. As such, we have been promoting
initiatives in various fields, such as electrification, weight reduction, energy savings
and adoption of renewable energy sources in seeking to realize a zero CO2 emissions
society in 2050.
Aiming at building a sustainable society
which enables the harmonious coexistence of
nature with our daily lives

Toshihiko Shimizu
Senior Executive Officer
Head of the Production Engineering
Development Center, Die Engineering
Center, Quality Control Dept. and Plant
Engineering & Environment Dept.,
Production Headquarters(As of March 31, 2021)

Environmental risk
reduction
Society in harmony
with nature
Carbonneutral society(1) Establishing a carbon neutral society
 Globally take on challenge of establishinga zero CO2 emissions society(2) Establishing a recycling-based society
 Take on challenge of minimizing the use ofresources

Recyclingbased society

Environmental Management
Notional Diagram of Global Environmental Commitment

Review of the Sixth Environmental Action Plan
— Establishing a Carbon Neutral Society —Positioning the establishment of a carbon neutral society as
our most crucial environmental issue, Toyota Industries has
been carrying out production activities with a constant focus
on saving energy. At the same time, we have accelerated thedevelopment of more environment-friendly products.
Under the Sixth Environmental Action Plan, a five-yearplan implemented from fiscal 2017 to fiscal 2021, our two
primary action policies were to “develop products andtechnologies possessing the utmost level of environmental
performance” and “develop and introduce productionengineering technologies with lower CO2 emissions and utilize
clean energy.” We have steadily undertaken tasks definedfor each policy and successfully achieved respective targets.
Please see pages 62−63 for details.

(3)	Reducing environmental risk and establishinga society in harmony with nature 		
Generate positive influence on biodiversity(4) Promoting environmental management
 Enhance consolidated environmental
management and promote enlightenment
activities

Approach of the Seventh Environmental
Action Plan
— Establishing a Carbon Neutral Society —We have formulated a next plan, the Seventh Environmental
Action Plan covering five years from fiscal 2022 to fiscal 2026.
With regard to products, we will emphasize reduction of
CO2 emissions as early as from the technology development
stage while further pursuing better energy-saving
performance, lighter weight and development of technologies
responding to electrification. In terms of production, while
making all-out efforts to save energy, we will define a global
target of total CO2 emissions and work toward the target sothat we can curb emissions as we expand business. In
addition, we will actively adopt renewable energy sources on
a global basis by setting a target introduction rate. Please see
pages 64−65 for details.

Steady Progress in Five Years
FY201722

FY2018FY2019FY2020

FY2021

Certified as anenvironment-friendly
product (gene B)

Certified as anenvironment-friendly
product (towing
tractor)

Opened H2
PLAZA Hydrogen
Station(Takahama Plant)

Added a 1.8-tonmodel to the lineup
of fuel cell (FC) lift
trucks

Oxygen-supplying
air compressor for
FCEVs

Saved
energy byusing
intermittent
air blow

Energy-saving equipment
utilizing karakuri mechanicalsystems winning a Good Idea
Award in the Karakuri KAIZEN
Exhibition

Reduced energy used in a
vehicle painting dry-off oven

Achieved a zeroCO2 emissions
plant for the firsttime in the Group(TMHMS)Portion heatedneeds heating
Reduced CO2
emissions by creating Before Heating processes
improvement
energy-saving
Consolidatingproduction lines linked
After
to product designs improvement

Toyota Industries Report 2021

Part

Beforeimprovement

Hot air
outlets

After
improvement

Exhaust outlets

Hot air outlets
Exhaust outlets

Portion thatEnvironment-Friendly Products

Materials Handling Equipment

Electric lift truck
Electric low
lift truck
Reach-type lift truck equippedwith lithium-ion batteries

FC lift truck

Car Air-Conditioning Compressor
Variable-displacement
type compressor(for internal-combustion
vehicles)Electric compressor(for HEVs, PHEVs,
BEVs and FCEVs)

Releasing environment-friendly
products in each business field

Charging stand for
PHEVs and BEVs

DC-DC converter

Oxygen-supplying air
compressor for FCEVs

Hydrogencirculation pumpfor FCEVs

AC inverter

Electronics

On-board charger

Automobile-Related Businesses
We develop and manufacture devices for a range of electrified vehicles, from hybrid electric vehicles (HEVs) to fuel cellelectric vehicles (FCEVs), and enjoy the world’s top share*1 in the car air-conditioning compressor and electronics fields.
*1: Survey by Toyota Industries Corporation

Car Air-Conditioning CompressorLP roviding Products with Excellent Energy-Saving
Performance
Sales of various electrified vehicles,
including HEVs, plug-in hybrid electricvehicles (PHEVs), battery electricvehicles (BEVs) and FCEVs, areincreasing in line with the growing
need for car electrification.
Car air-conditioning compressors
mounted on these electrified vehicles
Tomoji Tarutani
also need to be electric, and the mostGeneral Manager, Engineering
Dept., Compressor Division
important aspect of their performance(As of March 31, 2021)
is electric efficiency, which is directly
linked to the cruising range.
Besides requiring the same level of precision processing
and assembly technologies used for conventional compressors
for internal-combustion vehicles, electric compressors need
another important technology to ensure compatibility with
newly added electronic components. Taking advantage of ourstrengths in these technologies, we have successfully achieved
high electric efficiency performance.
Since being adopted in thePrius of Toyota Motor Corporation(TMC), we have been providing
compressors for various electrified
vehicles of automakers in andoutside Japan for about 20 years,
accumulating a pool of related
technologies and know-how along
ESB20 electric compressor
the way. Additionally, as BEVs facea problem of lower electric efficiency when a heater is turned on,
we have developed a compressor for heat pump air conditioning
systems to help improve electric efficiency while heating.

LC ompressors Also Used for Cooling Key Components
In recent years, following car electrification and widespreaduse of autonomous driving technology, there has been agrowing need to cool electronic devices, batteries and otherkey heat-emitting components. In response, we havedeveloped a large-capacity model used not only for vehicle
interior air conditioning but also for cooling those key
components. As products in this field relate to the driving
performance of automobiles, we believe that the reliability ofour products will serve as an even greater strength of Toyota
Industries.
LU tilizing Compression Technologies to Provide Drive
System Components
For FCEVs, which are a type of electrified vehicle thatgenerates electricity through a chemical reaction of hydrogenand oxygen, we have applied compression technology of car
air-conditioning compressors and developed such products
as an oxygen-supplying air compressor, which efficiently
compresses and supplies oxygen. The product is alreadyfitted in the MIRAI.
By leveraging our elemental technologies, we intend toincrease our role in the fields that relate to the driving
functionality of FCEVs, which are said to be the “ultimate
eco-car.”
Products Utilizing Compression Technologies

Oxygen-supplying air compressor

Hydrogen circulation pump23

Company Introduction

Materials Handling
Equipment

Automobile

Electronics

L Further Improving Environmental Performance of Power
Source Devices and Helping to Promote Electrificationin Each BusinessIn the field of car electronics, wedevelop and manufacture on-board
power source devices, including
DC-DC converters, on-board chargers
and AC inverters, and charging stands
by utilizing power electronics as thecore technology. By selling theseproducts to automakers, mainly TMC,
Takashi Kubooka
we are working to contribute to theGeneral Manager, Engineering
Dept., Electronics Division widespread use of electrified vehicles.
(As of March 31, 2021)
The progress in car electrification
and automation has raisedElectronics

TextileMachinery

Materials Handling Equipment Business*2: Survey by Toyota Industries Corporation

L Offering Trucks Equipped with Lithium-Ion Batteries or
Fuel Cells
In addition to the conventional electric lift truck, in 2016 welaunched a lithium-ion battery installation type thatsignificantly shortens the battery charging time. The truck
does not require the replacement of heavy batteries, which
can reduce the burden on the operator.
In the same year, an FC
lift truck was released. The
FC system installed in thisproduct was developed forrealizing the features of thelift truck, utilizing the fuelcell used in the MIRAI
developed by TMC. In
February 2021, weCompact FC module
developed a new generalpurpose small fuel cell
Lead-Acid Battery Type

Equipped with aninternally developed
high-efficiency
motor, etc.
Lower energy cost
resulting fromlonger uptime

Haruhiko Otsuka
General Manager, Engineering Dept.,
Toyota Material Handling Japan(As of March 31, 2021)

module. This module packages FC system components forthe generation of electricity and achieves high power
generation efficiency. It’s also relatively easy to install invarious existing engine-powered products. In the future, we
aim to supply the module as a stationary power generator toplants and commercial facilities and install it in industrial
vehicles and buses.
L Efforts to Increase the Percentage of Electrification of
Large Models
The electrification rate of the entire lift truck market has
already exceeded 60%, but the electrification of large models
has not progressed much due to the lack of power comparedwith internal-combustion models. Toyota Industries will utilize
its key component technology cultivated in electronics as wellas truck control technology to advance the development ofhigh-output and high-voltage components and improve theelectrification of large models.

Lithium-Ion Battery Type

Fuel Cell Type

Much shorter
charging time

No CO2 emissions
while in operation

Less burden of battery
replacement

Excellent environmental
performance

Equipped with T_Site
telematics as standard foreasier fleet management

Enhanced convenienceof completing fuelcharging in threeminutes

Promotion of ESG Initiatives

Corporate Information

Taking the Initiative for Growth – 2

expectations for more diverse power source devices withhigher performance (higher efficiency as well as size andweight reduction). Accordingly, we will pursue even higher
environmental performance and expand the scope of ourdevelopment efforts to power source system products.
Moreover, we are seeking to improve environmental
performance by applying the technology and know-how
accumulated in the development of power source devices toour other products, such as materials handling equipment
and textile machinery. Our plan is to increase our contribution
to the establishment of a carbon neutral society by promoting
electrification in each business field, including car electronics.

Toyota industries offers a wide range of industrial vehicles such as towing tractors, low lift
trucks, automatic guided vehicles (AGV) and lift trucks, which have the global top market
share*2. Since releasing our electric lift trucks to the market in the 1970s, many products
have been electrified, and we are working to strengthen the competitiveness of our products
through in-house production of key components such as motors, inverters and electronic
control units (ECU).

Strategies and Businesses

Reducing CO2 Emissions in Production Activities
The two pillars of Toyota Industries’ efforts to reduce CO2 emissions in its production activities are promoting thoroughenergy savings and utilizing renewable energy. The following shows examples among such efforts in this area.
L Promoting Thorough Energy Savings
In implementing thorough energy savings,
we are making proactive, Company-wide
efforts to “develop and introduce productionengineering technologies with lower CO2
emissions” and “fully implement
improvement activities on a daily basis.” For
the former, the Nagakusa Plant, a vehicle
assembly plant in Aichi Prefecture,undertook an improvement project with a2019 Energy
focus on minimizing the amount of heat
Conservation Grand
used in a painting dry-off oven andPrize
suppressing heat dissipation, thus
successfully achieving lower energy loss and a subsequent,drastic reduction in CO2 emissions. The project won the 2019
Minister of Economy, Trade and Industry Award in the
Industrial Field, which is the highest award in the Energy
Conservation Grand Prize program (Energy Saving Projects
Category) run by the Energy Conservation Center, Japan.
L Utilizing Renewable Energy
As part of an effort to utilize renewable energy, we areproactively introducing clean energy.
Toyota Material Handling Europe AB (TMHE), a subsidiaryserving as the regional headquarters of the materials handlingequipment business in Europe, has formulated a twopronged policy aimed at zero energy muda (waste) and zerocarbon emissions by fiscal 2031. As an interim target, TMHE
has worked to increase the ratio of electricity from renewable

Summary

As highlighted in this section, Toyota Industries isaggressively working to reduce CO2 emissions both interms of products and production toward theestablishment of a carbon neutral society. As a result ofsuch efforts, we were selected for the A List, the highest
rating, for three consecutive years in a survey conducted
on climate change by CDP*3, a U.K.-based international
environmental NGO.
As for products, we expect that more stringent
environmental regulations in various countries and growing
energy-saving consciousness among customers willfurther accelerate the electrification of cars and materials
handling equipment in the future. Amid this environment,
we will holistically leverage our broad range of technologies
accumulated in the automobile-related businesses andMaterials Handling Equipment Business to further reinforce
our development efforts geared toward electrification.
In terms of production, we have announced our target
to reduce CO2 emissions by 25% in fiscal 2026 from thefiscal 2014 level in becoming carbon neutral (zero CO2emissions) in 2050. Actually, however, we are aiming for aneven more ambitious target of achieving a 50% reduction
by fiscal 2031 from the fiscal 2014 level. We recognize thatenergy sources to 100% at
Achieved 100% use of
all of its bases by fiscal
electricity from renewableenergy sources
2021.
April
At
materials
handling equipment
To achieve this target,
production bases in Europe
2018
TMHE has selected the one
At all materials handlingAprilequipment bases in Europethat best matches each2021
(production + sales)base from among three
options: power contracts
for renewable energy power
Targetgeneration, renewable
FY
Achieve zero CO emissions totally2031
energy certificates andby replacing LPG andother gases with biogas
in-house power generation.
As a result, all of its fiveproduction bases and all 28 non-production companies
achieved the interim target in fiscal 2019 and in April 2021,
respectively. TMHE became the first company in the materials
handling equipment industry to achieve 100% use ofelectricity from renewable energy sources at all bases in
Europe.
In 2019, Toyota Material Handling Manufacturing Sweden
AB (TMHMS), a TMHE Group company, went a step beyond
using electricity from renewable energy and introduced
biogas in place of liquefied petroleum gas (LPG),
thereby becoming the first zero CO2 emissions
plant in the Toyota Industries Group.
TMHE is undertaking activities to switch allenergy sources used at business sites torenewable energy by 2030.
2

thorough improvement of our energy
use efficiency and effective
introduction of renewable energy willbe crucial in achieving this target.
Specifically, we will need to minimize
and utilize exhaust heat from foundry
and other processes, which form a
distinctive part of our business. In promoting the utilizationof renewable energy, we will extend the regionally uniqueeffort first undertaken by our bases in Europe to the entire
Group while defining new targets. Simultaneously, we willtake up a challenge of spurring innovation in
manufacturing to achieve carbon neutrality. The challenge
will include introducing production engineering
technologies that have undergone repeated discussions
on CO2 reduction from the product design stage. Further
endeavors will also entail proactively carrying out
demonstration and introduction of new carbon neutral
technologies, such as the use of hydrogen and capturingof CO2 at plants, for establishing a CO2 circulation system
at a model plant.
We will continue to make proactive efforts to reduce
CO2 emissions both in terms of products and production
and contribute to the creation of a carbon neutral society.

*3: An international NGO running a project in which institutional investors work together and request companies around the world to disclose their strategies against climate change andgreenhouse gas emissions data

24

Toyota Industries Report 2021

25

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Business Activities

Business Activities

Materials Handling Equipment

P. 26–31

Automobile (Vehicle / Engine / Car Air-Conditioning Compressor / Electronics)

P. 32-37

Textile Machinery

P. 38

Business Structure

Materials Handling Equipment

Link toproduct
details

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

Medium-Term Direction of BusinessWe will work to develop and propose new products and services incorporating cutting-edge technologies through theproactive use of open innovation and co-creation with customers.
Our goal is to become the logistics solutions partner of the first choice for customers by meeting their wide-ranging needs
and helping them increase their logistics efficiencies based on the Toyota Industries Group’s comprehensive strengths coveringboth the lift trucks and logistics solutions fields.

Business Characteristics

Net Sales

Operating Profit

FY2020

FY2020¥1,436.3 billion¥102.2 billion

FY2021

FY2021

Strengths• An extensive logistics-related product lineup both for lift trucks(internal-combustion type, electric type, fuel cell (FC) type, etc.) andlogistics solutions products (automated storage and retrieval systems,
automatic guided vehicle (AGV) systems, automated lift trucks, etc.)• High technological capabilities, including those linked toenvironmental and safety performance• Production know-how that ensures high levels of quality andproduction efficiency• Global, well-developed production, sales and service networks• An extensive value chain encompassing in-house development andproduction of engines, motors and other key components; total
after-sales services including maintenance and inspections as well
as operational management; and sales financing operations offering
more options in sales• No. 1*1 in lift truck unit sales in the world• A wealth of experience and know-how as well as a global networkin the Logistics Solutions Business• Software development capability to create such systems as awarehouse management system

1,431.4 billion

109.9 billion¥¥

Materials Handling Equipment Sales(Thousand units)

300• An expansion of global logistics volume in line with an increase in
the world population and economic growth• Growing need for electric lift trucks and products with high fuelefficiency and low environmental impact following enforcement of
more stringent environmental regulations around the world• Rising need for higher logistics efficiencies prompted mainly by agrowth in e-commerce transactions as well as soaring labor costs
and labor shortages• Growing need for automation and labor saving driven by the
emerging need for contactless operations due to COVID-19• Increased recognition that logistics is an essential business

Risks• Restrained capital investment due mainly to a slowing economy
and disasters• Weaker sales due to intensifying competition• Change in business environment triggered by an expanding market
of low- to mid-priced lift trucks• Suspension of production caused by supply chain disruptions• Weaker demand for internal-combustion lift trucks resulting from
more stringent environmental regulations• Emergence of next-generation robotics products as an alternative
to lift trucks

26

Toyota Industries Report 2021

Toyota Material Handling Group (TMHG)
Toyota Industries assists customers worldwide in attaining
greater logistics efficiencies as a market leader in thematerials handling equipment and logistics fields bydelivering optimal logistics solutions based on its
comprehensive strengths to respond to their specific andever-changing needs on a global scale.
Under the TMHG management structure, we engage inthe Lift Truck Business under the TOYOTA, BT, RAYMOND,CESAB and Tailift brands. Mutually utilizing the development
and sales strengths of each brand, TMHG is promoting
business globally.
We basically carry out product development in three
regions, namely Japan, North America and Europe. Basedon this structure, we develop and manufacture products ineach region, which are matched to the specific local needs
and characteristics, and ensure quick product delivery tocustomers. At the same time, we seek greater productappeal by conducting in-house development andproduction of such key components as engines and motors,

200

100

Toyota Material Handling Group*1: Survey by Toyota Industries Corporation

Opportunities

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

which greatly influence the performance of lift trucks. In
response to the enforcement of stricter environmental
regulations and growing eco-consciousness worldwide,
we are improving the energy-saving performance andenhancing our electric lift truck lineup. We are also
promoting the development of autonomous driving
technology as a response to growing needs for greater
logistics efficiencies mainly driven by labor shortages.
In addition to supplying high-quality products, weconsider our strength to be able to support customers
throughout our entire value chain that encompasses fromproviding after-sales services through our extensive
networks to offering sales financing operations. On the sales
front, we are offering products and logistics improvement
solutions optimally matched to individual customers’
logistics sites. Simultaneously, we are responding to needs
for fleet management that optimizes the operation ofmultiple lift trucks for customers conducting businessglobally. In terms of services, we assign experienced andhighly skilled personnel and utilize leading-edge information
technology (IT) to provide finely tailored services tocustomers. Our service personnel visit customers on aperiodic basis and provide maintenance services to prevent
troubles from occurring. When a problem does occur, theyswiftly make a visit to the customer and promptly takeappropriate action. We are also strengthening our internalsales financing operations mainly in Europe, the UnitedStates and other developed countries in order to flexibly
respond to customers’ diverse needs, including those forfund procurement, in the area of equipment sales.
Additionally, TMHG is collaborating with TALG to createsynergies between the lift trucks and logistics solutions
fields in development and other domains.

0
(FY)

17

18

19

20

Business Overview in Fiscal 2021

TMHG

21

The lift truck market in 2020 turned downward
except for China, where sales continued to increase.
Amid this operating climate, Toyota Industries
engaged in sales and after-sales service activities
matched to respective markets. However, unit
sales of lift trucks for fiscal 2021 were down 28,000
units, or 10%, to a total of 250,000 units from theprevious fiscal year. Meanwhile, as the need forhigher logistics efficiencies in warehouses is gettingstronger, underpinned by an expansion of the
e-commerce market, Toyota Industries made efforts
for reinforcement of the Logistics Solutions Businessthrough collaboration with subsidiaries in the
United States and Europe. Net sales in fiscal 2021
were roughly on par with the previous fiscal year at¥1,431.4 billion.

Toyota Industries’ Global
Lift Truck Market Share(Survey by Toyota Industries
Corporation, 2020)

TMHJ

TMHNA

TMHE

TMHI

TMHCN

Toyota Material
HandlingJapan

Toyota Material
Handling
North America

Toyota Material
Handling
EuropeToyota Material
Handling
International

Toyota Material
Handling
China

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

ToyotaIndustries
16%

World No. 1

Main ProductsElectric lift truck

Reach-type electric lift truck

Electric low lift truck

Internal-combustion lift truck

Automated lift truck

27

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Business Activities

Toyota Advanced Logistics Group (TALG)
With accelerated expansion of the e-commerce market due
in part to the growing need for contactless operations as aresult of COVID-19, the need for logistics automation has
been on the rise across the world. This has entailed
increases in the number and size of distribution centers,
which in turn have necessitated solutions for moreadvanced logistics issues.
Amid this environment, we go a step beyond justproviding a broad range of materials handling equipment
and associated software programs and are reinforcing our
Logistics Solutions Business to more meticulously satisfy
each customer’s varying needs by leveraging our logistics
improvement know-how accumulated to date.
Under the TALG management structure, the Logistics
System Engineering Department of Toyota Material HandlingJapan, U.S.-based Bastian Solutions LLC and Netherlands-

based Vanderlande Industries Holding B.V. are collaboratingwith each other in development, sales and other activities toexpand business while leveraging their individual strengths.
Toyota Advanced Logistics Group

TALG
Logistics System
Engineering Departmentof Toyota Material
Handling JapanTALNA*2/
BastianVanderlande*2: Toyota Advanced Logistics North America (Holding Company of Bastian)Under TALG, the Logistics System Engineering Department of Toyota
Material Handling Japan, Bastian and Vanderlande work together topromote the Logistics Solutions Business on a global scale whileleveraging their individual strengths.

Main Products and Systems

Automated storage andretrieval system

Simple AGV

SorterBusiness Activities in Fiscal 2021
Despite dropping sharply due to COVID-19, the world’s lift
truck market grew overall in 2020 as evidenced by arecovery trend after bottoming out in the first quarter in
China and in the second quarter elsewhere. Over the fullyear, the market expanded considerably year on year in
China, but shrank slightly from the previous year’s level inJapan, North America, Europe and other emerging
countries. Amid this environment, we worked to enhance
the product appeal of our mainstay lift trucks and expand
sales. We also strove to offer reliable after-sales services,enhance responsiveness to large-order customers andprovide solutions for logistics issues through theintroduction of optimally packaged systems.
In the field of lift trucks, we made efforts to increase our
product lineup in each region and promoted thedevelopment of autonomous driving technology internallyand with external organizations. We also worked to reinforce
our IT-based services, enhance safety and augment ourcompetitiveness in the environmental field mainly throughelectrification in order to ensure a more accurate response
to individual customers.
With regard to engines to be fitted in the 2021 models ofsome internal-combustion lift trucks sold in North America,
we have not been able to obtain the country’s legally
mandated engine certification (as of June 30, 2021).
Consequently, we suspended the shipment of these models(gasoline/LPG type) in January 2021 and their production in

28

Toyota Industries Report 2021

High-speed storage andpicking system

Airport baggage handlingsystemJune 2021. We will work for early resolution of the issue andendeavor to receive certification by continuing to provide
relevant information to the U.S. environmental authority.
In the logistics solutions field, we have been fostering
cooperation in sales activities by mutually supplying
equipment and systems while encouraging each TALG
company to leverage its strengths to bolster business. We
have also been accelerating coordinated activities as TALG
such as promoting collaborative efforts in the planning anddevelopment fields. In April 2021, we established a newcompany, T-Hive B.V., in the Netherlands to develop aseamless control system for Toyota
Industries’ autonomous vehicles andsystems, such as automated guided
forklifts (AGF), automated guided
vehicles (AGV) and autonomous
mobile robots (AMR).
Meanwhile, Aichi Corporation,
which possesses the top brand*3 inthe field of aerial work platforms inJapan, made efforts to expand sales
in the electricity and communications
fields, while the market of specialpurpose vehicles declined steeply
due to restrained capital investmentin the leasing industry. As a result,
Aichi posted sales of ¥59.3 billion, up¥0.9 billion, or 2%, over the previous
fiscal year.
Aichi Corporation’s aerial*3: Survey by Aichi Corporation

Activities of TMHGn Japanese Market

In 2020, while an expansion of the e-commerce market
pushed up the demand for lift trucks, customers postponed
their capital investment projects due to COVID-19, and theJapanese lift truck market declined overall. Unit sales ofToyota Industries’ lift trucks were on par with the previous
fiscal year at 45,000 units in fiscal 2021, but still maintained
the top position*4 in calendar 2020 for the 55th consecutiveyear.
The diversification of customer needs, heightened on theback of an expansion of the e-commerce market, labor
shortages and growing safety and environmental
consciousness among companies, has further accelerated
amid the COVID-19 pandemic. As the leading manufacturerof materials handling equipment, Toyota Industries has beenproactively promoting the development and release of new
products that lead to resolving issues facing customers.
As with the automobile industry, where development has
been proceeding for cars equipped with advanced safety
technologies, the logistics industry is facing a growing needfor more widespread use of lift trucks equipped withfunctions to support safe operations. As a response, in April
2020 we added a safe operation assistance function, which
had been available as an option, to our mainstay GENEOseries internal-combustion lift trucks and gene B-series
electric lift trucks as a standard feature. Through asynergistic effect with the System of Active Safety (SAS)*5,
a proprietary safety system fitted in our main lift truckmodels since 1998, we will further help reduce accidents
caused by lift trucks.
Needs are also growing for the automation of materials
handling equipment to increase the efficiency of logistics
operations and make them
contactless. In cooperation
with All Nippon Airways
Co., Ltd., we have carriedout a test trial of ourautonomous towing tractors
to carry baggage at
Kyushu-Saga International
Airport. The test trial has
been a first*6 in Japan totake place in actual airport
Autonomous towing tractor
operations.
*4: Survey by Toyota Industries Corporation based on data published by Japan Industrial
Vehicles Association*5: A safety system that helps to prevent the overturning of a lift truck and load spilling. It
includes a function to ensure stability while rotating (swing-lock control of rear wheels)and a function to automatically control the angle of the mast when lifting cargo high up(mast tilt control).
*6: This test trial of baggage transportation in actual airport operations was the first of its
kind conducted in Japan after the application of the Japanese government’s guidelines
for autonomous operations within an airport.

n North American Market

With a year-on-year decline in the North American lift truck
market in 2020, Toyota Industries posted combined unit
sales of the TOYOTA and RAYMOND brands of 80,000
units, down 13% from the previous fiscal year, but still
remained the market share leader*7 in 2020. Meanwhile,

parts sales and orders for after-sales services remained
strong.
In 2020, Toyota celebrated 30 years of manufacturing in
the United States, with cumulative total production
surpassing 700,000 units. Along with enhancing the productoffering with the release of new electric lift trucks and ahigh-capacity internal-combustion lift truck, Toyota
proactively enhanced
optional features that are
based on ergonomics andserve to increase operability
and reliability. In response to
the growing need toautomate intralogistics,
Toyota launched AGFs fittedwith the latest navigation
system using Light Detection
and Ranging (LiDAR)
New AGF
technology. Additionally,
efforts related to the After Sales Service Evaluation andCertification (ASEC) program designed to increase thecompetitiveness of dealers and an initiative to improve
operational efficiency in a systematic manner haveproceeded steadily and produced positive results.
Raymond has also been active in releasing new
products and enhancing functionality to satisfy various
customer needs. The product lineup has been enhancedwith the release of an electric low lift truck with battery
management functionality andan automated lift truck for
intralogistics, which boasts
improved telematics
functionality and utilizes avision-guided technology of apartner company. Raymondhas also started sales of abattery management systemusing next-generation lithiumion batteries that have shorter
charging time and are morecompact and highly functional
Next-generation lithium-ion battery
than conventional lead-acidbatteries. Paired with theiWAREHOUSE fleet management system, it will increase theproductivity of logistics sites, optimize battery usage andsimplify maintenance work, thereby allowing cost reductions
throughout the lift truck lifecycle.
We have established a program to provide funding touniversity research projects with the aim of facilitating thedevelopment of next-generation technologies in thematerials handling equipment industry. In 2020, we
strengthened our collaboration with two universities forrespective research projects.
We will continue to leverage the strengths of each brandand reinforce technological development by utilizing
automation, telematics and other advanced technologies.
In addition, through closer collaboration with the Logistics
Solutions Business, we will accurately respond to
customers’ needs for greater logistics efficiencies.
*7: Survey by Crist Information & Research, LLC, 2020

work platform

29

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Business Activitiesn European Market

Following the previous year, sales in the European lift truck
market continued to decrease in 2020. Toyota Industries
posted unit sales of 77,000 units in fiscal 2021, down 18%
from the previous fiscal year. Conversely, orders for aftersales services and sales of parts remained steady.
In Europe, increases in logistics volume and small cargodelivery as well as a requirement for a shorter delivery time
have pushed up the need for increasing the efficiency oflogistics operations, mainly those of lift trucks, at distribution
centers. As a response, Toyota Industries offers the I_Site
fleet management system that connects more than 150,000
lift trucks to a network. Besides lift trucks’ operational
status, the system collects various information, such asdata on impact detection and battery consumption. By
analyzing the information and sharing the results withcustomers, the system not only achieves better lift truck
operation and lower costs but also helps to increase safety
awareness.

Notional image of Toyota I_Site

In terms of products, we are enhancing the lineup ofmodels equipped with lithium-ion batteries. We are adding
these models to low lift trucks and counterbalanced lift
trucks in order to meet the diversifying needs of customers.
Among internal-combustion lift trucks, a model fitted with
our internally developed engine that satisfies the latest EU
regulations is highly recognized in the market.

New electric low lift truck

Going forward, we will work to enhance the lineup ofmodels offering excellent environmental performance. At thesame time, to help customers achieve higher logistics
efficiencies we will respond to the needs for connected andautomated lift trucks, which are expected to grow further inthe future, by utilizing the latest technologies.

n ALOMA*8 and Chinese Markets

Toyota Industries covers the ALOMA markets of some 60
countries in Asia, Latin America, Oceania, the Middle East
and Africa as well as the Chinese market. We are serving
these markets with a lineup consisting of TOYOTA, BT,
RAYMOND and Tailift brands.
The environment surrounding materials handlingequipment in the ALOMA and Chinese markets underwent
an unprecedented change in 2020. These markets
temporarily turned downward from the previous year due tothe rapid spread of COVID-19, but many ALOMA markets
already began to recover in the latter half, showing a 96%
year-on-year growth over the full term. Similarly, the Chinese
market was quick to indicate a dramatic recovery and grew
sharply by 137% over the previous year. The diversificationof market needs has also accelerated further in the ALOMA
and Chinese markets, as seen in strong environmental
consciousness among morecustomers and a growing
awareness of logistics costs.
Against this backdrop, we
have been making various
efforts, such as initiating
sales of Enelore, a newlithium-ion battery
replaceable with lead-acidbatteries used in ourelectrified lift trucks,
releasing small electric handpallet trucks in more
New Enelore lithium-ion battery
countries and promoting theused lift truck business.
Jointly with dealers, Toyota Industries operates a
program to promote sales activities with a focus on logistics
improvement solutions and has been making proposals tovisualize customers’ logistics sites, improve their safety andreduce costs. Through the program, we have beenstrengthening our relationships of trust with customers andhave successfully expanded our business domains.
In the field of after-sales services, we have established astructure to provide swifter and more efficient after-sales
services by centrally and digitally managing information onlift trucks owned by customers and their history of repairs.
We are putting in place a structure to offer extensive aftersales services by establishing a system to certify dealers’
after-sales service facilities and offering programs to train
service staff so that customers can use our products withan increased sense of reassurance.
As a total solutions partner capable of satisfying diverse
logistics needs, we will make concerted efforts with dealers
in each country to undertake various initiatives.
*8: A LOMA is a Toyota Industries term for Asia, Latin America, Oceania, Middle East andAfrica.

Activities of TALGn Logistics System Engineering Department of
Toyota Material Handling JapanA sharp growth of the
e-commerce market inrecent years has increased
inquiries and orders for large
distribution centers. In
response, we are striving toprovide logistics solutions
that cover the entire logistics
process, encompassing thesystems and equipment ofVanderlande and Bastian.
Automated lift truck operating in afreezer warehouse
Logistics automation, inparticular, has drawn muchattention since a need for contactless operations grew instep with the spread of COVID-19.
In 2020, we put an automated lift truck to practicaluse in a freezer warehouse for the first time in Japan andlaunched a feasibility test jointly with Nichirei Logistics
Group Inc. Additionally, we have conducted a feasibility testwith TRUSCO Nakayama
Corporation on the AiR-T
autonomous intelligent
mobile robot that assists
picking operations in
distribution centers. At the
Aichi Robot Showcase, aproject of Aichi Prefecture topromote the implementationof service robots in society,we made proposals on
the use of the AiR-T in
AiR-Tan office building and at acoffee shop.
In dealing withdiversifying customer needs,
we have taken a stake in+Automation Inc., a startup
company providing awarehouse robotics system
subscription service.
Through this arrangement,
we have been examining
t-SORT sorting robot
new sales methods andhave reinforced the lineup ofsorting robots used in distribution centers.

n Bastianreceiving orders for anumber of large projects infiscal 2021.
Capitalizing on its
strengths in software andother technology
development, Bastian has
been promoting
collaboration with othercompanies in the Toyota
System operating in an e-commerce
Industries Group. For
distribution center
example, Bastian hasreceived, jointly with
Vanderlande, an order for a project of a leading e-commerce
operator in North America and started to provide software
programs to the Logistics System Engineering Departmentof TMHJ. In North America, Bastian has also been
accelerating its offering of logistics solutions to lift truckusers by reinforcing collaboration with dealers of the
TOYOTA and RAYMOND brands.

n Vanderlande

Vanderlande, offering logistics solutions globally, hasreceived many orders from leading companies in various
business categories for their projects to establish
distribution centers, capturing growing needs prompted by
COVID-19 for more advanced logistics in the e-commerce,
retail and parcel services sectors. For the warehouselogistics and parcel/postal services businesses, Vanderlande
has been accelerating system development respectively
optimized for operations ofindustry’s top companies
and focused businesscategories.
In the airport business,amid difficult operating
conditions Vanderlande
obtained orders for systems
for new terminals fromexisting airport customers aswell as long-term servicing
contracts based on its
High-speed sorting system used in the
e-commerce and apparel sectors
long-standing relationshipsof trust.
Vanderlande is also promoting collaboration to further
augment relationships with other companies within the
Toyota Industries Group, working together with the Logistics
System Engineering Department of TMHJ and Bastian to
introduce its systems into the markets in Japan and North
America, respectively.

Bastian, mainly operating in the North American market,
has been responding to the logistics automation needs ofcustomers in a broad range of fields, including the
manufacturing, retail and e-commerce sectors, andreceiving an increasing number of orders.
Based on a wealth of know-how accumulated in past
projects, Bastian has increased its capabilities for large
system development and integration, thereby successfully
Airport baggage handling system

30

Toyota Industries Report 2021

31

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Business Activities

VehicleAutomobile

Link toproduct
details

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

Business Characteristics

Net Sales

Strengths• An agile structure to undertake all aspects from planning anddevelopment to production within a plant (Vehicle)• Highest-level production efficiency and quality among all Toyotaaffiliated automobile body manufacturers (Vehicle)• Know-how on the development and production of diesel engines
and turbochargers (Engine)• Highly efficient production of high-quality gasoline engines,
including those for use in hybrid electric vehicles (HEVs) (Engine)• Excellent product development capability centered around fuelefficiency and car electrification (Car air-conditioning compressor)• Global top-share*¹ products for use in a full range of vehicles, frominternal-combustion vehicles to HEVs, plug-in hybrid electricvehicles (PHEVs), battery electric vehicles (BEVs) and fuel cellelectric vehicles (FCEVs) (Car air-conditioning compressor)

4.7 billion¥

We will contribute to TMC as a development andproduction base of compact sports utility vehicles (SUV)
by leveraging our comprehensive strengths derived fromthe highest level of safety, environment, quality, cost anddelivery (SEQCD) among all Toyota-affiliated automobile
body manufacturers and through greater collaboration
within the Toyota Industries Group.

Business Overview in Fiscal 2021

In fiscal 2021, sales of the RAV4 posted an increasein Japan, which was offset by a decline in sales
elsewhere. As a result, unit sales remained on parwith the previous fiscal year at 323,000 units. Net
sales decreased by ¥1.6 billion, or 2% year on year,to ¥88.3 billion.

200

Nagakusa Plant to Initiate Production of a PHEV
Model Added to the RAV4 Lineup

0

17

18

19

20

21

Engine Sales(Thousand units)

800
600

• Sales expansion in each sector in line with growth of the automobile
market

200

400

0
(FY)

17

18

19

20

21

Compressor Sales(Million units)• A drop in product competitiveness due to the yen’s appreciation ora rise in raw material costs

30• Suspension of production caused by supply chain disruptions

20*1: Survey by Toyota Industries Corporation

FY2021300• Increasing needs for fuel-efficient products due to stricter
environmental regulations and growing environmental
consciousness• Customers becoming less willing to buy fuel-efficient products
following less stringent environmental regulations

FY2021

Vehicle Sales(FY)• Shrinking of the automobile market caused by economic slowdown

FY2020¥17.2 billion(Thousand units)• Higher technological capabilities accumulated through thedevelopment and production of products for Toyota Motor
Corporation (TMC), external sales and internal use (Electronics)

Risks

FY2020¥613.8 billion

591.6 billion

100

Opportunities

Operating Profit¥• Monozukuri (manufacturing) using equipment created in-house to
produce high-quality products and flexibly accommodate changes
in production volume (Car air-conditioning compressor)• Development, production and top-level quality of electronic partsand devices for electrified vehicles (Electronics)

Medium-Term Direction of Business

10
0
(FY)

17

18

19

20

21

For the RAV4, which became the first Toyota vehicle in a
decade to receive the Car of the Year Japan 2019-2020
award, a PHEV version was added to the lineup in June
2020, and Toyota Industries’ Nagakusa Plant initiatedproduction of the new model. The RAV4 PHV is equippedwith a high-capacity, high-output lithium-ion battery, which
achieves a driving range of 95 km in the EV mode. The model
also realizes powerful acceleration and boasts greater fuelefficiency, thus offering superior environmental performance.
Moreover, a system to feed power externally, useful during
disasters and for outdoor activities, is a standard feature of
the RAV4 PHV.
The Nagakusa
Plant is the only
plant in Japanto manufacture
the RAV4 PHEV.
As such, we willcontinue to help
promote car
electrification in
RAV4 PHV
the future.

HARRIER Designed and Developed by Toyota
Industries Selected as Good Design
Best 100
The new HARRIER released by TMC in June 2020 was
included in the 2020 Good Design Best 100 under theGood Design Award program, receiving high recognition
for its exterior and interior designs that are both dynamic
and sophisticated, bringing every detail together at a highquality level.

32

Toyota Industries Report 2021

In addition to the design of the vehicle’s upper body,
Toyota Industries also developed its outer shape and interior.
In order tocontinue meetingcustomers’
expectations,
we will work tostrengthen ourvehicle planningand development
capabilities andensure quality.
HARRIER selected as Good Design Best 100

Presenting a RAV4 Concept Model at Tokyo Auto
Salon 2021
We have been engaging in activities to turn the RAV4, forwhich Toyota Industries carries out from development toproduction, into an even more exciting and appealing SUV.
As part of these activities, we presented the RAV4 5D*2ADVENTURE at Tokyo Auto Salon 2021. It is a concept
model exclusively created for mountain rescue operations
based on a survey on professional-use vehicles running in aharsh environment. In order to reach a destination reliably andsafely to start a rescue operation, the model is built from a
professional viewpoint and incorporates various equipment
and functions to enable driving in mountain areas underrough weather. We intend to utilize the outcome of these
activities in future development of the RAV4.
*2: Features five action patterns (“dimensions”) of rescue team members, enabled by thevehicle’s unique equipment and functions.

RAV4 5D-ADVENTURE

EngineMedium-Term Direction of BusinessIn line with the adoption of the Paris Agreement,
an international framework to address climatechange issues in 2020 and beyond as well as theannouncement by some countries to accelerate efforts
toward carbon neutrality, there is a growing demand forengines with even greater fuel efficiencies and cleaner
emissions. Amid this environment, we aim to contributeto a reduction of CO2 emissions by meticulously
meeting customer needs for diverse engine systems
and developing new, globally top-level technologies andproducts that also respond to car electrification.

33

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

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

Engines for Automobiles
n Diesel Engines

Needs for powertrains are becoming diverse dependingon the region. The requirement is also growing mainly inemerging countries for diesel engines, which have high fuelefficiency and excellent torque at a low speed, as a power
unit suited for SUVs and such commercial vehicles as pickup
trucks. Toyota Industries’ diesel engines are mounted in avariety of vehicles, including the Toyota Land Cruiser series,
the world’s renowned full-fledged four-wheel drive (4WD)model, and TMC’s Innovative International Multipurpose
Vehicle (IMV) series targeting emerging countries. Theirhigh performance and reliability have gained strong market
recognition. Currently, our mainstay products are in-line
4-cylinder GD diesel engines and V-type 8-cylinder VD
diesel engines. The GD diesel engine is equipped with aturbocharger that provides significantly better performancethrough the adoption of new technologies, such as a ballbearing-type system.
As a global engine supplier, we will continue to undertake
entire operation from development to production andsupply diesel engines that can win the heart of customers
worldwide.

2.5-liter A25A engine for HEVs

Turbocharger for gasoline engines

Engines for Industrial Fields

Link toproduct
details

High-output GD diesel engine and new turbocharger

n Gasoline Engines

Our Toyota New Global Architecture (TNGA)*3 gasoline
engines, namely the 2.5-liter A25A and 2.0-liter M20A, aremainly fitted in the RAV4 and HARRIER, which are achievingrobust sales. Developed based on the TNGA concept,
these engines offer both excellent driving performance andenvironmental performance. Responding to the advancementof car electrification, we have also added an HEV version of
the A25A engine to our lineup.
In April 2021, we also started production of aturbocharger for gasoline engines mainly fitted in the Lexus
RX and Crown. We are working to steadily increase the34

Toyota Industries Report 2021

Medium-Term Direction of BusinessIn the Car Air-Conditioning Compressor Business,
we leverage our core compression technology andhave become an innovative component supplier amid
an expected advancement in car electrification andautonomous technology.
We will further enhance our capability to develop
products that offer excellent fuel efficiency, quieter
operation, compactness and light weight. At the sametime, with the aim of satisfying needs of a broader
variety of customers, we will utilize our accumulated
technologies to expand our development domain into
core components for drive systems.

In fiscal 2021, unit sales of car air-conditioning
compressors decreased 3.52 million units, or 11%,from the previous fiscal year to 27.51 million units due
mainly to lower sales in North America and Europe.
Net sales were down ¥26.6 billion, or 8%, from theprevious fiscal year to ¥301.6 billion.

Development Efforts Centered around
Fuel Efficiency and Car Electrification

TOPIC

Even though growth in the car air-conditioning compressor
market is currently slowing down due to the stagnating
automobile market, we expect continued growth over the
medium term on the back of expanding automobile sales andan increase in the number of vehicles fitted with an air
conditioner. Unit sales of electrified vehicles, in particular, areexpected to grow significantly for the foreseeable future as
automakers aggressively roll out new models toaccommodate stricter fuel efficiency regulations in respective
countries and expanding customer needs. Amid thisenvironment, we will further reinforce product developmentfor not only compressors for internal-combustion vehicles,
which are still mainstay products as of now, but also
compressors for electrified vehicles, for which we anticipate
stronger demand.

Participating in a Verification Test on
Engines for River Drainage Pumps

n More Compressors with High Fuel Efficiency
to Receive Off-Cycle Credits

Toyota 1ZS diesel engine and turbocharger

In April 2021, Toyota Industries was selected as anengine manufacturer for a project to develop,
introduce and utilize mass product drainage pumps,
for which the Ministry of Land, Infrastructure, Transport
and Tourism publicly solicited participants. The project
aims to demonstrate a new system to operate riverdrainage pumps, which uses multiple diesel enginesof mass-produced vehicles instead of a conventional,
dedicated large diesel engine. Toyota Industries’ 1GD
diesel engine has been approved for the project.

n Strengths of Toyota Industries’ Electric
Compressors
CSR Material Issue

Business Overview in Fiscal 2021

Toyota Industries’ engines are highly renowned for theirreliability and excellent environmental performance inindustrial fields as well. These engines are used for a wide
variety of applications, including our lift trucks, and adopted
by many manufacturers of GHPs*4, CHPs*5, generators andconstruction machinery. These engines offer downsized
displacement compared with conventional models withequivalent output, resulting in higher fuel efficiency, cleaner
emissions and a reduction in size.
*4: S hort for gas heat pump; air conditioner driven bya gas engine*5: S hort for combined heat and power;
co-generation system

Car Air-Conditioning Compressor

More stringent fuel efficiency standards have been enforced
across the world, pushing the need for higher fuel efficiency
both for internal-combustion vehicles and electrified vehicles.
In the United States, our SES series for internal-combustion
vehicles became the industry’s first compressor to beapproved under the country’s off-cycle credits program. The
program gives off-cycle credits to technologies that caneffectively improve fuel efficiency. Since receiving the first*6
accreditation, we have acquired credits for our compressors
for electrified vehicles as well, and the number of models
equipped with these compressors has been growing.

Since launching the world’s first*6 mass production of electriccompressors in 2003, our products have been used in HEVs,
PHEVs, BEVs and FCEVs of Toyota, Ford, Daimler, Honda,
Nissan and other automobile brands. We have been
undertaking efforts to further increase the appeal of thesecompressors based on our technology and know-how
accumulated through the development of a broad range ofmodels. Among various electrified vehicles, BEVs in particular
are facing the growing need for higher electric efficiency whilea heater is turned on as well as for cooling heat-emitting key
components, such as batteries. In response, we have beendeveloping and manufacturing high-capacity types byleveraging our strengths represented by high efficiency andreliability.
In addition to enhancing product appeal, we plan tofurther reinforce our capability to support automakers, forexample, by proposing solutions to issues related to an
automobile as a whole, and ultimately expand sales.
*6: Survey by Toyota Industries Corporation

Our Strengths inElectric Type

Common to all electriccompressors

Unit sales in fiscal 2021 totaled 765,000 units,a decrease of 42,000 units, or 5%, from theprevious fiscal year due to declines in sales of GD
diesel engines and M20A gasoline engines. Thanks
to an increase in sales of foundry parts, however,net sales increased by ¥1.4 billion, or 1% year on
year, to ¥139.9 billion.

number of models equipped with this turbocharger.
We will further improve the quality and productivity of ourgasoline engines and turbochargers used in these engines
and contribute to the creation of “ever-better cars” by TMC.

Electric compressors
for BEVs

Business Overview in Fiscal 2021

Our Initiatives

Broad product lineup

Applicable to a variety of vehicle
models from compact to luxury cars

Higher efficiency in power
consumption / Lower noise/ Less vibration

Design with our patented
technology while ensuring productquality and performance in mass
production by leveraging precise
machining/assembly technology

Support capability toautomakers

Proposal of problem solutions toautomakers

Prevention of radio
disturbance on homeelectrical appliances whilecharging BEVs

Improvement of inverter performanceachieving lower electromagnetic
noise

Improving electric
efficiency while a heater isturned on

Development of high-efficiency
compressors for heat pump air
conditioning system

Cooling such devices asbatteries

Expanding our business field todriving components with reliabilityn Utilizing Compression Technology to Extend
Our Role into the Field of Core Components
for Drive Systems
CSR Material Issue

Going a step beyond the cooling functionality of car airconditioning compressors, we have utilized our compression
technology accumulated to date to develop and manufacture
air compressors, which take in and compress air to efficiently
supply the oxygen necessary to generate power, as well ashydrogen circulation pumps. We aim to play a role in realizing
a hydrogen-based society by contributing to an improvementin the performance of FCEVs through the development ofthese components.

35

Company Introduction

Strategies and Businesses

Promotion of ESG Initiatives

Corporate Information

Business Activities

TOPIC
The new MIRAI FCEV released by TMC in December
2020 uses an air compressor and hydrogen circulation
pump newly developed by Toyota Industries. The aircompressor is the world’s first*7 mass-produced
product to adopt a centrifugal method using a
movable roller-type traction drive unit. Not only does
the product achieve a 24% compression efficiency
improvement, 35% weight reduction and 45% size
reduction compared with the previous model but it
also contributes to the higher output of the new
MIRAI. The hydrogen circulation pump adopted a newseal structure that offers better corrosion resistance.
This makes it possible to change the material used forthe pump from stainless steel to aluminum, thereby
realizing a 41% weight reduction.

Electronics

High-precision machining and assembly technologies
are essential in realizing high quality and the superior
performance of products. Toyota Industries realizes highspeed and high-precision machining by leveraging its
know-how accumulated through responding to the stringent
demands of automakers worldwide and by developing
devices from processing machines to associated cutting
tools in-house.

Medium-Term Direction of Business

Establishing Stronger Global Production and
Supply Structures
In step with the move toward more stringent fuel efficiency
regulations and car electrification, the car air-conditioning
compressor market is expected to witness fluctuations
in demand for compressors both for internal-combustion
vehicles and electrified vehicles. In response, we arebuilding a production structure less vulnerable to changes in
production volume through such measures as automating
our plants to save labor, designing mixed lines that enable
the production of a wide variety of products and creating aframework to increase production capacities in a phasedmanner.
Meanwhile, we expect the rapid spread of electrified
vehicles in China driven by the country’s new energy
vehicles (NEV) regulation*8. Accordingly, we will make sure tocapture booming demand by promoting the local productionof electric compressors. We have already initiated local
production at TD Automotive Compressor Kunshan Co.,
Ltd. (TACK) in March 2020 and at Yantai Shougang TD
Automotive Compressor Co., Ltd. (YST) in June 2021.

*7: Survey by Toyota Industries Corporation

Oxygen-supplying air compressor

Production-Related Strengths Underpinning
Quality and Performance

Hydrogen circulation pump

*8: R egulation in China mandating automakers to produce a certain percentage of BEVs andother new energy vehicles

Worldwide Bases of Car Air-Conditioning Compressors (As of March 31, 2021)

TDDK
DNDE

Germany

Germany

YST

DICH

MACI

China

China

U.S.A.

Car electrification is steadily progressing in keepingwith the enforcement of more stringent environmental
regulations and growing energy-saving consciousness
among customers. The Electronics Division willcontribute to car electrification in a broad range offields, from offering on-board power source devices toimproving social infrastructure through the provisionof charging stands and systems to feed electricity
externally.

Italy
SUBROS

TACK

India

China

Main control
standCharging stand for PHEVs and BEVs

Business Overview in Fiscal 2021
Net sales of electronics products expanded, primarily
supported by sales of on-board chargers for PHEVs
and BEVs.

Contributing to Car Electrification
Toyota Industries develops and manufactures on-board
power source devices, including DC-DC converters, onboard chargers and AC inverters, and charging stands. We
sell these products mainly to TMC and other automakers
across the world.
A DC-DC converter converts the high voltage of onboard batteries into a lower voltage level to supply power tostandard electrical devices such as lights and wipers. Our
DC-DC converters are fitted in the Prius, Aqua and othermajor electrified vehicles. By utilizing such technologies as
the world’s first thick copper substrate*10, we have reduced
the product volume and weight.
An on-board charger converts AC voltage from thepower grid into DC voltage in vehicles and is necessary forcharging PHEVs and BEVs, for which the market is expected
to expand in the future. We offer chargers compatible with awide range of voltages to enable their use in various parts of
the world.

DIAM

TICO

Japan

*10: Survey by Toyota Industries Corporation

Sub-stand

U.S.A.

DNTS

In addition, we have been
contributing to car electrification
also in terms of infrastructure bydeveloping public charging stands for
PHEVs and BEVs.

Helping to Increase the Competitiveness of Our
Electrified Products
We will leverage our technology and know-how cultivatedin the development of vehicle power source devices toengage in the development of electronic components in otherbusinesses as well, such as materials handling equipment
and textile machinery, and to increase the appeal of our
products. Through these efforts, we intend to spur greatersynergistic effects among our businesses in moving ahead
with electrification.

Use of an Electrified Vehicle as a Power Source
during a Disaster
CSR Material Issue

In recent years, there has been a growing public attention to
the use of high-capacity batteries of electrified vehicles asa power source. The 1.5-kW type AC inverter, in particular,
can operate appliances that require more power, such as
rice cookers and hot plates, and has drawn much attention
as an emergency power source in a disaster in addition to
camping, outdoor events and other applications.
In July 2020, we conducted a disaster prevention drill
using the power source functionality of an AC inverter, which
is fitted in the RAV4 PHV manufactured at the Nagakusa
Plant. During the drill, we used the AC inverter to power
multiple electric appliances simultaneously, such as a radio,
TV, notebook PC, smartphone charger, lighting device,electric fan, refrigerator, heater and hot-water pot, andverified its usefulness as a power source.

TACG

U.S.A.
TICA

U.S.A.

TACI

Indonesia

DNBR

BrazilConsolidated production bases

Licensed manufacturers

DC-DC converter

On-board charger

Technical service stations

Toyota Industries’ car air-conditioning compressors are widely adopted by automakers around the world, garnering the No. 1*9 position in global sales.
*9: Survey by Toyota Industries Corporation

36

Toyota Industries Report 2021

Disaster prevention drill using AC inverter’s power source functionality

37

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

Business Characteristics
Strengths• Broad product lineup both in the spinning and weaving machinery
fields• World-leading market share* in unit sales of air-jet looms

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

Risks• Changes in each government’s policies concerning promotion of
the country’s textile industry• Weaker sales due to intensifying competition• A decline in capital investment due to economic slowdown and raw
cotton and/or yarn price fluctuations

Medium-Term Direction of BusinessWith growing environmental consciousness worldwide,
needs are expected to increase further for textile
machinery offering superior environmental performance.
Toyota Industries’ products are highly acclaimed bycustomers for their excellent reliability and productivity
as well as energy-saving performance. We willcontinue to develop energy-saving and other innovativetechnologies and seek to achieve further growth andevolution as a leading manufacturer of textile machinery.

Business Overview in Fiscal 2021
On the whole, the environment surrounding the textile
machinery market continued to be difficult. Unit salesof air-jet looms decreased 2,100 units, or 31% year
on year, to 4,700 units. Combined with a decrease insales of quality measurement instruments for fiber,yarn and fabric, net sales were down ¥20.9 billion, or
34%, from the previous fiscal year to ¥40.8 billion.

Growing Needs for Air-Jet Looms
Toyota Industries’ air-jet looms are adopted by customers in
China, India and many other countries. Produced fabrics areused broadly for towels, shirts and other clothing purposes

38

Toyota Industries Report 2021

* Survey by Toyota Industries
Corporation

Net Sales

Operating Profit

FY2020

FY2020¥61.7 billion¥2.9 billion

FY2021

FY2021• Global, well-developed service network• Ability to develop products that excel in reliability, energy-saving
performance and versatility

Link toproduct
details

40.8 billion

1.1 billion)¥(¥

Air-Jet Loom Sales(Thousand units)

10
8
6
4
2
0

(FY)

17

18

19

20

21

as well as in industrial products such as vehicle airbags.
Recently, the need has been on the rise for fabrics such as
woven glass fiber for use in smartphone substrates, and it
is anticipated that applications for air-jet looms will expand
further.

MOSAIC Yarn Spinning Device Receiving anAward at the National Commendation forInvention
Our MOSAIC yarn spinning device, offered as an option to
the RX300 high-speed ring spinning frame, received theMinister of Economy, Trade and Industry Award at the 2020
National Commendation for Invention. The award recognized
the device’s ability to flexibly change the mixing ratio of
two different types of roving materials in one yarn and tocompletely switch over between the two types, such as bychopping and reconnecting the roving materials. The resulting
MOSAIC yarns enable unconventional, diverse fabric designs,
helping to create a new market in the textile industry, mainlyin the apparel field.
Yarn made using the MOSAIC yarn spinning device
Material A +Material B

Material B

Material A

Material B

A complete switchover between two colors (types) is
possible with varying thickness.
The gradation of two colors (types) is possible via a
gradual switchover.

<Reference: Normal yarn>
Consistent thickness and twisting

Product sample made with
MOSAIC yarn