Toyota Industries Report

Year ended March 31, 2019

Message from the
Chairman and President
Firstly, we would like to extend our sincere appreciation foryour continued support of Toyota Industries Corporationand the Toyota Industries Group.
In fiscal 2019 (ended March 31, 2019), the global
economy grew moderately due mainly to strong consumer
spending in the United States despite such uncertainties
as U.S.-China trade frictions and Brexit concerns.
Meanwhile, the Japanese economy remained strong indomestic demand in capital investment and consumer
spending; however, a sense of stagnation was prevalent
due primarily to anemic exports.
In this business environment, Toyota Industries
Corporation and its Group companies (“Toyota Industries”)
undertook efforts to ensure customer trust through a
dedication to quality first as well as to expand sales by
responding flexibly to market trends. As a result, in fiscal
2019 Toyota Industries posted an increase in net sales.
The increase was attributable mainly to higher unit salesof materials handling equipment, an expansion in thelogistics solutions business, production commencementof the new RAV4 vehicle and TNGA gasoline engine and a
growth in sales of the GD diesel engine. In terms of overallprofit, despite vigorous sales efforts and cost reduction
activities throughout the Group, Toyota Industries recorded
a decrease in profit due mainly to rising raw materials
costs and the negative impact of the changes in retirement
benefit plans made in the previous fiscal year.
With regard to the future economic outlook, the global
economy is expected to continue to grow moderately.
However, U.S.-China trade frictions, Brexit concerns andgeopolitical risks continue to require close monitoring.
Furthermore, with such uncertainties as the impact ofthe planned consumption tax hike in Japan, the businessenvironment continues to preclude optimism.
Under these circumstances, Toyota Industries is further
strengthening its business foundation and addressing key
management issues to raise corporate value by leveraging
the Group’s comprehensive strengths.
As immediate tasks, we will endeavor to bolster ourmanagement platform to respond quickly to drasticchanges in the business environment. Specifically, basedon our quality first approach, we will strive to build a leancorporate structure. We aim to do this by promoting cost
reduction activities throughout the entire Toyota Industries
Group, by pursuing excellence in quality, cost and productlead time throughout the global supply chain, by promoting
work styles that eliminate muri (overburden) and muda

(waste) and by maximizing work performance/results
at respective workplaces. At the same time, we intend
to strengthen risk management in order to quickly andappropriately respond to changes in world affairs.
Besides these approaches, we will focus on the timely
launch of appealing products and services demanded
by customers worldwide and raise the competitivenessof our businesses by expanding the value chain andstrengthening solution proposal capabilities. In addition,
we will aim for further growth by promoting innovativetechnology and product development while also
proactively embracing digital technologies and open
innovation. To support such business development, we
will continue our efforts to create an organization andworkplace environment that enables diverse humanresources to fully demonstrate their abilities and develop
personnel who learn and think on their own and quickly
take the initiative.
In other areas, Toyota Industries will create a workplaceenvironment that places top priority on safety; thoroughly
enforce compliance, including observance of laws
and regulations; and proactively participate in social
contribution activities. By carrying out these initiatives,
we aim to meet the overall trust of society and growharmoniously with society. With regard to protection of
the global environment, we will undertake Group-wide
initiatives in seeking to realize “a zero CO2 emissions
society in 2050.”
Through these initiatives, we aim for sustainable growthof each business and strive to support industries and social
foundations around the world and contribute to making
the earth a better place to live, enriched lifestyles and acompassionate society as described in Toyota Industries’
Vision 2030 plan, which was formulated in April 2019.
In closing, we would like to sincerely ask for yourcontinued understanding and support.
July 2019

Tetsuro Toyoda
Chairman

Akira Onishi
President

Chairman Tetsuro Toyoda (left)/President Akira Onishi (right)
In front of the Toyota Industries Head Office (Kariya-shi, Aichi)

1Realizing Toyota Industries’ Vision Based on

Our Basic Philosophy

Based on our basic philosophy, we aim to contribute to making the earth a better place to live, enrich lifestyles andpromote a compassionate society by making the most of the core assets and strengths we have accumulated to datein promoting our diverse businesses such as materials handling equipment, logistics solutions, vehicle, engine, carair-conditioning compressor, car electronics and textile machinery and by engaging in value creation.

Vision 2020

[Respect for the Law]
Toyota Industries is determined to comply withthe letter and spirit of the law, in Japan andoverseas, and to be fair and transparent in allits dealings.

Reasons for Revising the Vision

To contribute to an enriched
lifestyle and comfortable society

Key Components■ Trends in the Fourth Industrial Revolution such as
artificial intelligence (AI), big data, the Internet ofThings (IoT) and robotics■ Heightened geopolitical risks such as trade disputes andregional conflicts■ Expanding social demands for non-financial factors such asenvironmental, social and governance (ESG) issues andsustainable development goals (SDGs)

Mobility

Basic Concept

New
Product
New
Product

New
Product

New
Product

New
Product

Overview of the New Vision■ Contribute to making the earth a better place to live, enrich
lifestyles, and promote a compassionate society bysupporting industrial and social infrastructure around theworld through the continuous supply of products/services
that anticipate customers’ needs.

■ The basic concept remains the same because
the vision intrinsically encapsulates Toyota
Industries’ aspirations and direction to betaken for the medium to long term.
■ Based on the previous visions, the vision is to
be updated to the extent necessary in
response to changes in the internal andexternal environments.

Value Chain<Expansion of value chain>

World Market<Business development in world markets>

External Evaluations

ich lifestyles, and promot
ce to live, enr
e a comtter plaepassio
b
a
nate
earth
e
soci
h
t
e
ety
k
in
f
l
r
a
a
i
s
c
tructure aro
so
d
n
a
l
Ma
a
i
r
t
u
s
nd theu
ort indwo,” “reliable/safe, comfortab
Supple” an rld
issions
m
e
o
d “s
r
e
z
/
mar
ean
t”
“Cl

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

We encapsulated the spirit of founder Sakichi Toyoda in the
Toyoda Precepts, which serve as Toyota Industries’ corporate
creed and upon which our Basic Philosophy is based.

■ TICO Group contributes toward theachievement of the United Nations’
SDGs by striving to resolve social
issues through corporate activities.

Changes for Toyota Industries

Create new values by being studious and creative■ Expansion of Toyota Industries’ businesses, structuresand organizations

Automobile

Selected as an A-List company of the
CDP surveys in both the climate change
and water security in 2018. (See pages
65 and 75.)

Financial Section /Corporate Information[Respect for Employees]
Toyota Industries nurtures the inventivenessand other abilities of its employees. It seeks tocreate a climate of cooperation, so that
employees and the Company can realize theirfull potential.

Solution■ Always taking on challenges into new
businesses since establishment in 1926
■ Toyoda Precepts (corporate creed), a founding
spirit that has consistently served as a cornerstoneof Toyota Industries

Changes in External Environment

Toward a Sustainable
Society

Materials
Handling
Equipment /Logistics

Take on challenges and enter into new businesses
Textile Machinery
TPS

Promotion of ESG Initiatives[Respect for the Natural Environment]
Through its corporate activities, Toyota
Industries works to contribute to regional living
conditions and social prosperity and also
strives to offer products and services that areclean, safe, and of high quality.

Concept behind the New Vision

Strategies and Businesses

Support industries and social foundations aroundthe world by continuously supplying products/
services that anticipate customers’ needs in order
to contribute to an enriched lifestyle andcomfortable society[Respect for Others]
Toyota Industries is respectful of the people,
culture, and traditions of each region andcountry in which it operates. It also works topromote economic growth and prosperity inthose regions and countries.

[Respect for Customers]
Toyota Industries conducts intensive productresearch and forward-looking development
activities to create new value for its customers.

Vision 2030

Company Introduction

Basic Philosophy

Team

Manufacturing foundation strength

Toyoda Precepts

Toyota Industries’ CSR Activities

Contribution asa corporate citizen

Main Scope of CSR Activities

Contribution in
non-business areas

Ethical responsibility /ComplianceFairness, transparency,
respect for human rights
and cultures, environmental
conservation

Foundation ofbusiness activities

Economic responsibility(business responsibility)

Continuous provision of
products and services
that contribute to society

Contributions throughbusiness activities

Corporate social
responsibility

Adhering to a quality first
approach, we ensuremonozukuri (manufacturing)that quickly responds to thediverse, ever-changing needs ofcustomers. (Relationship with
Our Customers)

We encourage open
procurement and seek
co-existence and co-prosperity
with our business partners(suppliers) based on mutual
trust. (Relationship with Our
Business Partners)

We strive for timely,
appropriate and fair information
disclosure while promoting
good communications withshareholders and investors.
(Relationship with Our
Shareholders and Investors)

We aim to create safe andsecure workplaces where
each and every associate
can exercise their diverse
potentials and play activeroles. (Relationship with Our
Associates)

We fulfill our role as a good
corporate citizen and actively
undertake social contribution
activities. (Relationship with
Our Local Communities)

Our ContinuousCommitment

Society (company’s raison d’etre)

2

Toyota Industries Report 20194

5

CONTENTS
Message from the Chairman and President

Inside cover–1

Realizing Toyota Industries’ Vision
Based on Our Basic Philosophy

2, 4–5
3

Contents
Company Introduction
Toyota Industries’ Value Creation Process and Businesses

6–7

Consolidated Eleven-Year Summary

8–9

Consolidated Financial and Non-Financial Highlights

10–12Strategies and Businesses
Top Message

14–21

Special Features
1 Providing Solutions to Customers’

Logistics-Related Issues—Efforts in the Area of Airport Logistics Solutions—

2 Car Electronics Technology to Help Promote the Useof a Vehicle as a Power Source

22–25
26–29

Business Activities

Financial Section / Corporate Information

Materials Handling Equipment

30–35

Automobile

36–41

Textile Machinery

42

Promotion of ESG Initiatives
Corporate Governance

44–50

Corporate Governance Structure / Internal Control System /Compliance / Management of Confidential Information / Risk
Management
Relationship with Our Stakeholders
Relationship with Our Customers

51–52

Relationship with Our Business Partners

53

Relationship with Our Shareholders and Investors

54

Relationship with Our Associates

55–58

Relationship with Our Local Communities

59–60

Environmental Initiatives
Vision for Environmental Activities

61

Structure to Implement Environmental Management

62

Environmental Impact Flow and Environmental
Accounting

63

Sixth Environmental Action Plan

64–65

Establishing a Low-Carbon Emission Society

66–67

Establishing a Recycling-Based Society

68–69

Reducing Environmental Risk and Establishinga Society in Harmony with Nature

70–71

Environmental Management

72–75

Third Party Assurance of Environmental
Performance Data

76

Financial Section
Consolidated Statements of Financial Position

78–79

Consolidated Statements of Profit or Loss

80

Consolidated Statements of Comprehensive Income

81

Consolidated Statements of Changes in Equity

82–83

Consolidated Statements of Cash Flows

84–85

Corporate Information
Directors, Audit & Supervisory Board Members,
Senior Executive Officers and Executive Officers

86–87

Major Bases

88–89

Investor Information

90

Editorial policy
In aiming to realize a deeper understanding of the Toyota Industries
Group among a broad spectrum of stakeholders, the Annual Report
and Social and Environmental Report have been combined into the
Toyota Industries Report from the fiscal year ended March 31, 2008.
In addition to the Toyota Industries Group’s management policies,
the report provides easy-to-understand information regarding its
business, corporate governance, social and environmental activities
over the past year as well as its future direction.
Period covered by the report
This report focuses on activities carried out in fiscal 2019 (April 1,2018 to March 31, 2019), but also includes some information
outside this period.
Organizations covered in the report
Toyota Industries Corporation and its consolidated subsidiaries
Reference guidelines• Global Reporting Initiative (GRI) Standard• ISO 26000• J apan’s Ministry of the Environment Environmental Accounting
Guidelines (2005 Version)• J apan’s Ministry of the Environment Environmental Reporting
Guidelines (2012 Version)• International Integrated Reporting Framework by International
Integrated Reporting Council (IIRC)

Cautionary Statement with Respect to Forward-Looking Statements
This report contains projections and other forward-looking statements that involve risks and uncertainties. The use of the words “expect,” “anticipate,” “estimate,” “forecast,” “plan”
and similar expressions is intended to identify such forward-looking statements. Projections and forward-looking statements are based on the current expectations and estimatesof the Toyota Industries Group regarding its plans, outlook, strategies and results for the future. All such projections and forward-looking statements are based on management’s
assumptions and beliefs derived from the information available at the time of producing this report and are not guarantees of future performance. Toyota Industries undertakes noobligation to publicly update or revise any forward-looking statements in this report, whether as a result of new information, future events or otherwise. Therefore, it is advised that you
should not rely solely upon these projections and forward-looking statements in making your investment decisions. You should also be aware that certain risks and uncertainties could
cause the actual results of Toyota Industries to differ materially from any projections or forward-looking statements discussed in this report. These risks and uncertainties include, but
are not limited to, the following: (1) reliance on certain customers, (2) product development capabilities, (3) intellectual property rights, (4) product defects, (5) price competition,(6) reliance on suppliers of raw materials and components, (7) environmental regulations, (8) success or failure of strategic alliances with other companies, (9) exchange rate fluctuations,(10) share price fluctuations, (11) effects of disasters, power blackouts and other incidents, (12) latent risks associated with international activities and (13) retirement benefit liabilities.
The fiscal year ended March 31, 2019 is referred to as fiscal 2019 and other fiscal years are referred to in a corresponding manner.

3

Toyota Industries’ Value Creation Process

and Businesses

Using our resources and strengths as the foundation, we leverage synergies
among businesses in our efforts to provide products and services that
anticipate customers’ needs, seek the growth of our businesses and meetthe expectations of stakeholders.

Human Resources■ Global sales and service networks formaterials handling equipment andother products■ Close collaboration with Toyota
Group companies and carmakers
around the world■ Business reinforcement andexpansion in collaboration withpartner companies through M&A andother schemes

Financial Foundation■ Sound financial foundation■ High rating bestowed by rating
agencies (fund procurement capability)

6

Toyota Industries Report 2019

Development

Production

Sales (for users)

Internal-combustion
lift truck

Materials Handling Equipment

Electric lift truck

After-sales services

Reach-type
electric lift truck

Automated
lift truck

Low lift truck

Aerial work
platform(¥ Billion)

1,500

120

1,200

100
80

900

60

600

Logistics Solutions

40
20

300
0

Toyota Industries works closely with subsidiaries Bastian Solutions LLC and Vanderlande Industries Holding
B.V. by leveraging each company’s strengths to contribute to resolving customers’ logistics issues througha combination of various equipment and systems.
Development

Operating Profit

Net Sales(¥ Billion)

Production

Sales (for users)

After-sales services

17

(FY)

Automated storage
and retrieval system

Simple AGV(automatic guided vehicle)

Shuttle-type
Airport baggage
automated storage handling system
and retrieval system

Sorter

18

19

0

(FY)

17

18

19

Percentage of
Net Sales
66.2%

Automobile
VehicleAutomobile

With its strengths as an industry leader in safety, the environment, quality, cost and delivery, the Vehicle
Business produces the RAV4 for markets in and outside Japan.
Development

Production

Sales (for Toyota)

EngineIn addition to diesel engines produced under a comprehensive structure ranging from planning anddevelopment to production, we also produce gasoline engines.
Development

Production

Sales (for Toyota)

After-sales services

Development

Production

Sales (for automakers around the world)

After-sales services(¥ Billion)(¥ Billion)

600

30

400

20

200

10

0

17

(FY)

Diesel engine

Gasoline engine

Turbocharger

Car Air-Conditioning Compressor
Toyota Industries’ car air-conditioning compressors are highly acclaimed in terms of their reliability at highoperating speeds and quiet operation in addition to such excellent environmental performance features ascompactness, light weight and fuel efficiency. The Car Air-Conditioning Compressor Business captures theworld-leading market share in unit sales*1.

Operating Profit

Net Sales
RAV4

After-sales services

Electric
Variable-displacement Fixed-displacement
compressor
type compressor
type compressor

Oxygen-supplying
air compressor forfuel cell vehicles

1819

Development

Production

Sales (for automakers around the world)

After-sales services

DC-DC
converter

4WD rearinverter mounted
in the Prius

On-board
chargermounted in
the Prius PHVDevelopment(¥ Billion)

80

8

60

6

40

4

0

Production

Sales (for users)

After-sales services

2

17

18

19

Percentage of
Net Sales

We undertake fully integrated operations from development and production to sales and after-sales services
for spinning machines that spin twisted fiber bundles into yarn and weaving machines that weave spun yarn
into fabrics. Our air-jet looms have captured the world-leading market share in terms of unit sales*1.
Air-jet loom

Ring spinning frame

27.6%(¥ Billion)(FY)

Textile Machinery

19

Operating Profit

20

Textile Machinery

18

Textile Machinery
Net Sales

The Car Electronics Business develops and produces electronics products primarily for electrified vehicles
such as hybrid vehicles.

17

Percentage of
Net Sales

Hydrogen circulation
pump for fuelcell vehicles

Car Electronics

0

(FY)

0

(FY)

17

18

19

Financial Section /Corporate Information

Global Network

The Materials Handling Equipment Business develops, produces, sells and provides services for a broad
range of products, from industrial vehicles centered around a full lineup of lift trucks (0.5- to 43-ton
capacities) to materials handling systems. Lift trucks, which capture the top global market share*1, aredelivered to customers around the world. In addition to the sale of lift trucks, we strive to meet a variety ofcustomer needs through sales financing and after-sales services.

Promotion of ESG Initiatives■ Strengthening competitivenessthrough collaboration between the
Materials Handling Equipment andautomobile-related businesses■ Accumulation of knowledge thanks toinvolvement in the production of
automobiles spanning from vehicle
assembly to the development of key
components■ Wide-ranging responsiveness andsustainable growth potential
stemming from technologies in thedevelopment of engines andelectrification■ World-leading quality and productivity
based on the Toyota Production
System
■ Globally stable production and supply
capabilities of respective businesses

Materials Handling Equipment

Strategies and Businesses

Product Development &Manufacturing Capabilities

Materials Handling Equipment

Contributing to the Realization of a Sustainable Society■ Challenging spirit passed down since
the time of its founding■ Human resources comprised of morethan 60,000 employees possessing
diverse strengths in respective
business fields

Roles and Characteristics of Each BusinessCompany Introduction

Core Assets andStrengths

3.4%

Cotton classing instrument*1: Survey by Toyota Industries Corporation

7

Consolidated Eleven-Year Summary
Toyota Industries Corporation
Years ended March 31

Millions of yen
International Financial ReportingStandards (IFRS)Generally Accepted Accounting Principles in Japan (JGAAP)

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

For the YearNet sales

2,003,973

1,675,148

2,243,220

2,166,661

2,007,856

1,615,244

1,543,352

1,479,839

1,377,769

1,584,252

134,684

147,445

127,345

134,712

117,574

107,691

77,09870,092

68,79822,002(6,621)

Profit before income taxes*1

202,225

209,827

181,986

185,398

170,827

138,133

86,83680,86673,911

31,756

14,343

Profit (loss)*2

152,748

168,180

131,398

183,036

115,263

91,705

53,11958,59447,205(26,273)(32,767)

Investments in tangible assets*3

113,748

115,458

77,39375,438126,395

109,479

89,45958,404

38,25426,963

104,495

Depreciation*3

85,63977,73873,25377,36670,78264,153

57,954

59,83062,372

73,23887,219Research and development expenses

88,807

77,647

69,52465,44047,78546,32639,05732,07027,78826,826

33,646

Basic

491.97541.67420.78582.58367.06292.76170.36188.02151.51(84.33)(105.16)

Diluted491.97541.67420.78582.57366.99292.57170.35188.02151.51(84.33)(105.16)

7,986.59

8,223.82

7,125.37

6,481.97

7,500.16

5,640.08

4,719.66

3,662.26

3,300.17

3,390.02

2,987.16

155.00150.00125.00120.00110.00

85.00

55.00

50.00

50.00

30.00

40.00

Total assets

5,261,174

5,258,500

4,558,212

4,199,196

4,650,896

3,799,010

3,243,779

2,656,984

2,481,452

2,589,246

2,327,432

Share of equity attributable to owners of the parent

2,479,718

2,553,391

2,240,293

2,113,948

2,425,929

1,829,326

1,524,933

1,197,841

1,075,939

1,104,929

977,670

Per share of common stock (yen):Company Introduction

2,214,946

Operating profit (loss)

Earnings (loss) per share*2, *4

Cash dividends per share
At year-end

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

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

310,485

310,487

310,489314,226

314,155

313,730

312,207311,687

311,564

311,570

311,577

Net cash provided by operating activities

270,306

268,567

239,094

240,169

182,191

155,059

151,299

101,718

153,661

203,452

65,768Net cash used in investing activities(395,000)(340,324)(86,925)(531,561)(160,769)(118,483)(274,210)(9,403)(187,574)(36,855)(114,217)

Net cash provided by (used in) financing activities

40,467

153,303789

130,923(8,918)

6,183

7,050

10,279(85,728)(38,230)

120,971

Cash and cash equivalents at end of year

239,140

323,830

243,685

92,399248,706

226,406

179,359

296,811

195,566

317,590

188,011

Cash flows

Indices
6.1

7.4

7.6

6.0

5.4

5.4

4.8

4.5

4.6

1.6

(0.4)

EBITDA (millions of yen)*5

323,936

313,055

276,193369,857

248,854

216,175

155,234

161,876

150,481

90,521

71,608Return on equity (ROE) (%)*6

6.1

7.0

6.1

8.3

5.6

5.7

4.1

5.4

4.5

(2.6)

(2.8)

Return on assets (ROA) (%)*7

2.9

3.4

3.0

4.1

2.7

2.6

1.8

2.3

1.9

(1.1)

(1.2)

D/E ratio (%)*8

52.3

45.7

43.6

43.7

32.0

39.9

45.4

53.8

56.8

60.3

68.6

Ratio of share of equity attributable to owners of the parent*9
Number of employees (persons)

47.1

48.6

49.1

48.5

50.7

46.6

45.4

43.0

41.4

40.8

40.0

64,641

61,152

52,62351,45852,52349,33347,41243,51640,82538,90339,916

Financial Section /Corporate Information

Operating profit ratio (%)

Promotion of ESG Initiatives

Capital stock

Strategies and Businesses

Share of equity attributable to owners of the parent*1: The figures prior to fiscal 2017 are ordinary income under JGAAP.
*2: Profit (loss) attributable to owners of the parent*3: Investments in tangible assets and depreciation apply to property, plant and equipment. They do not include materials handling equipment leased
under operating leases.
*4: Earnings (loss) per share is computed on the average number of shares for each year.
 rofit before income taxes + Interest expenses – Interest and dividends income + Depreciation and amortization (including assets other than property,*5: P
plant and equipment)*6: P rofit (loss) attributable to owners of the parent / Average share of equity attributable to owners of the parent at the beginning and the end of the
fiscal year
*7: Profit (loss) attributable to owners of the parent / Average total assets at the beginning and the end of the fiscal year
*8: Interest-bearing debt / (Share of equity attributable to owners of the parent – Subscription rights to shares)*9: (Share of equity attributable to owners of the parent – Subscription rights to shares) / Total assets
Notes: 1. Toyota Industries has adopted IFRS beginning from the end of fiscal 2017.
		 2. Operating profit in fiscal 2018 includes a one-time effect of ¥14.3 billion arising from changes in retirement benefit plans.

8

Toyota Industries Report 20199

Consolidated Financial and Non-Financial Highlights
Financial Information(FY2019)

Net Sales¥

Operating Profit

2,214.9 billion¥

134.6 billion¥

Consolidated Number of Employees

Ratio of Non-Japanese Employees

Consolidated Subsidiaries

113.7billion

64,641persons

66.6 %

254 companies

Share of Equity Attributable to
Owners of the Parent

Number of Female Associates Holding
Assistant Manager or Higher Position

Ratio of Associates with
Disabilities (Non-Consolidated)

Number of Participants ofSocial Contribution Activities of Employee Associations

2,479.7 billion

120 persons

2.37*%

1,251 persons¥

88.8 billion

Net Sales

Operating Profit/Operating Profit Ratio(¥ Billion)(¥ Billion)

2,500

150
2,003.9
1,675.1

7.6

120

127.3

7.4

¥

Profit before Income Taxes

Consolidated Number of Employees/
Ratio of Non-Japanese Employees(%)(¥ Billion)(Persons)

10
8
6

250

70,000

6.1

147.4

134.6

209.8

200

202.2

181.9

90

1,500

60,000(%)(Companies)(Persons)

70

300

1,200

60
50

20,000

0
2017

0

2018

Operating Profit

254

250
200

254

207

1,180

1,000

1,141
978

800

150

600

100

400

10,000

50

200

2019
Operating Profit Ratio (right)

0

0

0

ProfitInvestments in Tangible Assets

Depreciation

Frequency Rate of Lost Workday Injuries(Non-Consolidated)

Participants of Age-Based Health Education(Non-Consolidated)

Persons Having Completed Guidance Program on
Prevention of Lifestyle Diseases (Non-Consolidated)(¥ Billion)(¥ Billion)(¥ Billion)(%)(Persons)(Persons)

200

120

100

0.50

3,000

1,200

2019

152.7

150
131.3

(FY)

2019

2017

2018

113.7

85.6
80
77.3

73.2

2,000

0.30

2018

2019

0.22

0.10

20

0.06

0.06

2017

2018

0

0

0

2019

2017

2018

2019

2,445

2,470

2,142

1,056

1,000
800

1,500

600

1,000

400

500

200

1,117

717

0

0

Note: The figures for profit attributable to owners of the parent are presented.

(FY)

Research and Development Expenses

Cash Dividends Per Share/Dividend Payout Ratio

Total Assets/Share of Equity Attributable to Owners of the Parent/
Ratio of Share of Equity Attributable to Owners of the Parent

Number of Female Associates Holding
Assistant Manager or Higher Position

Ratio of Associates with Disabilities(Non-Consolidated)

Number of Participants of Social Contribution
Activities of Employee Associations(¥ Billion)

(¥)

(%)

(¥ Billion)(%)(Persons)(%)(Persons)

100

200

35

6,000

50

120

2017

2018

88.8
80

77.6

150

69.5

29.7
125

60

(FY)

(FY)

2019

31.5
30

27.7
155
150

25

100

5,000

49.1

4,558.2

48.6
5,258.5

(FY)

2019

5,261.1

45

0
2017

2018

2019

(FY)

2,553.3

2,479.7

Cash Dividends Per ShareToyota Industries Report 2019

2018

2019
Dividend Payout Ratio (right)

(FY)

2.26

2019

2.37

2.0

2018

2019

Total Assets
Share of Equity Attributable to Owners of the Parent
Ratio of Share of Equity Attributable to Owners of the Parent (right)

2018

2019

2,000

1,548

1,500

1,251

1,222

1.0

40

(FY)

2017

1,000

500

0.5

0
2017

(FY)

1.5

20

0
2017

2.23

2018

60

1,000

0

2.5

2017

81

40

2,240.2

50

(FY)

104

100
80

2019

120

47.1

4,000

2,000

20

2018

3,000

40

(FY)

2017

Financial Section /Corporate Information

2017

2018

0.20

40

20

2017

Ratio of Non-Japanese Employees (right)

0.40

77.7

60

40

0

2019

2,500

60

50

(FY)

2018

Consolidated Number of Employees

100
80

100

115.4

2017

Promotion of ESG Initiatives

(FY)

2018

(FY)

0

Note: Operating profit in fiscal 2018 includes a one-time effect of ¥14.3
billion arising from changes in retirement benefit plans.

2017

168.1

10

Participants of Japan’s Subcontracting
Law Seminar

30,000

50

(FY)
(FY)

64,641

52,623100

30

61,152

Consolidated Subsidiaries

40,000

60

500

60.4

50,000

150

1,000

65.2

66.6

* As of June 1, 2018

Strategies and Businesses

2,214.9
2,000

Investments in Tangible Assets

Research and Development Expenses

85.6 billion(FY2019)

Company Introduction

Depreciation¥

Non-Financial Information (CSR)

0
2017

2018

2019

(FY)

0
2017

2018

2019

(FY)

2017

2018

2019

Note: As of June 1 of each fiscal year

11Consolidated Financial and Non-Financial Highlights

Non-Financial Information (Environment)(FY2019)

Energy Consumption (Consolidated)

CO2 Emissions (Consolidated)

17,514 TJ

941,371 t-CO

4,620 km

Discharge of Treated Wastewater(Consolidated)

Raw Material Consumption (Consolidated)

Waste Generation (Consolidated)

2,463 km830,588 t

110,466 t

Energy Consumption (Consolidated)

CO2 Emissions (Consolidated)

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

(km3)

2

3

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

17,51415,000939,753

913,123

941,3715,000

800,000

4,000

600,000

3,000

400,000

2,000

200,000

1,000

4,661

4,873

3

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

4,620

10,000

5,000

0

0

0
2017

(FY)

2018

2019

(FY)

2017

2018

2019

2017

2018

2019

Discharge of Treated Wastewater(Consolidated)

Raw Material Consumption (Consolidated)

Waste Generation (Consolidated)

(km3)

(t)

(t)

1,000,000

150,000

2,500

2,370

2,407

2,463

790,022

830,5882,000

800,000

1,500

600,000

90,0001,000

400,000

60,000500

200,000

30,000712,293

0

0
2017

(FY)

2018

2019

(FY)

122,521120,000

110,466
87,917

0
2017

2018

2019

(FY)

2017

2018

PRTR* Law Designated Substances(Japan Consolidated)

Emissions/Transfer of PRTR Law DesignatedSubstances (Japan Consolidated)

VOC*2 Emissions (Consolidated)

(t)

(t)

(t)

2,000

600

1

1,500

1,579

1,500

571

500
1,447

1,379

1,000

439
400

1,453

900

2019

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

Toyota Industries Report 2019

(FY)

P22–29Business Activities

300

P30–4200
2018

Special Features

600

100

2017

P14–21

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

3000

Top Message
1,369

1,200

500

(FY)

1,460

2019

430

200

12

(FY)

2017

2018

2019

(FY)

2017

2018

2019

*2: Short for Volatile Organic Compounds

13Top Message

Top Message

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

Akira Onishi President

1 Review of Vision 2020

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

Major Initiatives in Each Business Field

To contribute to an enriched
lifestyle and comfortable society

Targets

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

Car Air-Conditioning
Compressor

Solution

Key Components

MobilityNew
Product
New
Product

New
Product

New
Product

Value
Chain

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

World Market<Business development in world markets>

Car Electronics
PCU
components / assemblies

Electric compressors

Production of HVs

Clean diesel engines

Hybrid system for construction machinery

Air compressor for FCVs

Production lines with highenvironmental efficiencies

General-purpose industrial
engines without DPF

Acquisition of dealers in Europe
and the U.S.

In-house development of
inverters for electrified vehicles

Special-edition Vitz

Increase in internallysourced parts

Plastic glazing

Turbochargers

Acquisition of Cascade

Textile Machinery

Others

JAT810 air-jet loom

Automotive
batteries
CFRP

Acquisition of Uster
Technologies

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

New
Product

Value Chain

EngineFC lift trucks, LiB lift trucks

3Es*1: Based on acquisition prices for investment
securities

VehicleFinancial Section /Corporate Information

Vision 2020

Promotion of ESG Initiatives

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

Strategies and Businessesn Major Initiatives and Challenges

World
MarketSales expansion in emerging countries

Business expansion in emerging
countries

Business reinforcement in South America

Business reinforcement in China

Support for development
and production preparations
for the RAV4 globally

Launch of production in
India

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

14

Toyota Industries Report 201915

Top Message

2 	Reasons for Revising Vision 2020 into the Toyota

Industries Group Vision 2030

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

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

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

Create new values by being studious and creative

Automobile

Toyota Industries Report 2019

Materials
Handling
Equipment /Logistics

Financial Section /Corporate Information

16

compa
ssion
ate s
ocie
ty

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

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

live, enrich lifestyles, and promote a

Promotion of ESG Initiatives

n Basic Concept

Founder Sakichi Toyoda

Take on challenges and enter into new businesses
Textile Machinery
TPS

Team

Manufacturing foundation strength

Toyoda Precepts

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

3 Vision 2030

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

Company Introduction

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

Toyoda Precepts (Corporate Creed)

17 Goals of SDGs

17

Top Message

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

Products and Services of theMaterials Handling Equipment
Business

Value chainn Targets of the New Vision

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

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

18

Toyota Industries Report 2019

Sales financing
Shuttle-type automatedstorage and retrieval
system

SorterSoftwareTransporting andloading/unloading

Automatic guided
vehicle (AGV)
Automated storage
and retrieval system

Automated lift truck

Attachments andother components

Accepting deliveries
and shipping

Storing

Electric lift truck
Reach-type
electric lift truck

Warehouse truck

Sorting
Internal-combustion lift truck

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

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

Financial Section /Corporate Information

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

Lift trucks andother equipment

Logistics solutions

Promotion of ESG Initiatives

4 Medium-Term Initiatives in Each Business

Fleet management system
Warehouse management system
Telematics

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

After-sales services
Spare parts

Company Introduction

Numerical Targets of the
New Vision

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

19Top Message

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

n Medium- to Long-Term Initiatives

Battery
Cooling

Hydrogen circulation
Electronicpump (FCV)component
Cooling

EV
Oxygen-supplying
air compressor (FCV)PHV
HV

New RAV4

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

20

Toyota Industries Report 2019

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

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

Financial Section /Corporate Information

TNGA gasoline engine

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

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

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

1) Direction of Our Business

Strategies and Businesses

Electric
generation

FCV

5 Basic Management Concept

Company Introduction

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

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

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

21Special
Feature1

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

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

Changing Environment for
Airport Logistics

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

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

Net sales

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

Financial Section /Corporate Information

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

Automated storage
and retrieval system

Simple AGV

Promotion of ESG Initiatives

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

Low automatic
towing vehicle

Strategies and Businesses

Strengths of theWorld’s Leading Logistics Solutions Provider

AGV

Company Introduction

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

Past Efforts in the
Logistics Solutions Business

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

00

02

04

North America

06

08Europe101214Asia/Pacific

16

18
Other

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

22

Toyota Industries Report 201923

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

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

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

⑨Unloading

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

⑥ Storing and sorting⑤BHS utilizing autonomous AGVs

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

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

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

④ Conveying of baggage

Company Introduction

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

①Flight and baggage check-in

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

⑪ Cargo handling⑧Towing containers, etc.

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

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

* Survey by Toyota Industries Corporation

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

Self-service check-in

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

24

Toyota Industries Report 2019

BHS (Heathrow Airport)

Towing tractor

Autonomous driving test of towing tractors

Financial Section /Corporate Information

Toyota Industries Group’s Strengths in
Airport-Related Logistics

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

Promotion of ESG Initiatives

Future Business Development Leveraging the Group’sComprehensive Strengths

Roles of Logistics in Airports

Strategies and Businesses⑩Baggage claim

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

Outdoor test of automated lift trucks

FLEET in live operation

25

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

Fan
100W

Industrial
refrigerator
700W

Dust-/fireproof shutter
1.5kW

Air conditioner
2.2kW

Refrigerator
300W

Water-supply
pump
10kW

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

Industrial vacuum cleaner
Water pump
3.7kW
5kW

100V appliances
Electric kettle
1.3kW

Charging
mobileRice cooker
phones
1.1kW
30W
Television 300W

No. 1

*2: Survey by Toyota Industries Corporation

Multilevelcar park
4kW

Heat pump
3.2kW

Industrial rice cooker
2.7kW

1.5kW

Elevator
5kW

Built-in electriccooking stove
5kW
Power consumption

5

Accumulated totalof 29 million units

25
20

3

15
2
10
1

5

4WD rear inverter
mounted in the Prius

On-board charger
mounted in thePrius PHV

DC-DC converter
mounted in the Prius

0(FY) 01

06

11

16

Accumulated total

19
Annual shipment

Sub-stand Main control standCharging stand for
PHVs and EVs

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

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

26

Toyota Industries Report 2019

Jun Kumeno

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

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

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

30

4

0

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

Promotion of ESG Initiatives

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

200V appliances

Accumulated total (million units)

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

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

Strategies and Businesses

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

Company Introduction

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

Annual shipment (million units/year)

SpecialFeature2

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

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

27

特集 2

Drill at Toyota Industries for cooking andserving meals in a disaster

Initiative 1

Elevator

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

1.5kW

1.5kW

1.5kW

1.5kW

V2H
Initiative 2

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

Toyota Industries Report 2019

Buildings

Biomass power
generation

Thermal power
generation

Factories

Houses

Initiative 3

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

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

Evacuation shelters,
school gymnasiums, etc.

Commercial power gridn Notional Image of a V2H
System Composition
Using solar power generation

Controlling charging anddischarging of electricity
with PHV/EV

Systemconnection

Storage battery

Feeding daytime surplus
electricity to a vehicle

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

V2L
V2L

TMC’s SORA FC bus

AC 200V

Financial Section /Corporate Information

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

Solar power
generation

Promotion of ESG Initiatives

1.5kW

Control panel

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

Wind power
generation

Strategies and Businessesn Notional Image of Operating High-Power
Equipment

1.5kW

Demand andsupply ofelectricity

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

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

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

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

SwitcherAC 100V

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

Business Activities

Business Activities

Business Structure

P36–41P42

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

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

Strengths

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

Textile Machinery

Materials Handling Equipment*1: Survey by Toyota Industries Corporation

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

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

FY2018FY20191,466.6 billion¥1,283.0 billion¥

FY2018Operating
Profit¥104.9 billion

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

FY2019114.6 billion¥n Toyota Material Handling Group

TMHG
Materials Handling Equipment Sales(Thousand units)

300
250
200
150
100
50
0

30

(FY)

15

Toyota Industries Report 2019

16

17

18

19

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

(Survey by Toyota Industries
Corporation, 2018)

TMHJ

TMHNA

TMHE

TMHI

TMHCN

Toyota Material
HandlingJapan

Toyota Material
Handling
North America

Toyota Material
Handling
EuropeToyota Material
Handling
International

Toyota Material
Handling
China

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

Financial Section /Corporate Information

Net Sales

Toyota Advanced Logistics Group (TALG)

Promotion of ESG Initiatives

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

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

Company Introduction

P30–35Materials Handling Equipment
Automobile

ToyotaIndustries

20%

World No.1

31

Business Activities

Activities of TMHG

TALG

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

Business Activities in Fiscal 201932

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

Toyota Industries’ booth at ProMat 2019

Financial Section /Corporate Information

Aichi Corporation’s aerial work platform

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

Promotion of ESG Initiatives*3: Survey by Aichi Corporation

North American Market

Strategies and Businesses

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

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

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

Company Introduction

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

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

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

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

Business Activities

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

Activities of TALG

Vanderlande

Logistics System Engineering Departmentof Toyota Material Handling Japan

intelligent mobile robot

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

Financial Section /Corporate Information

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

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

Promotion of ESG Initiatives

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

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

Strategies and Businesses

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

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

Company Introduction

TMHE’s exhibition space at CeMAT 2018

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

GMSS mobile service system

34

Toyota Industries Report 201935

Business Activities

Automobile

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

Business Overview in Fiscal 2019

Strengths

Highest-Level SEQCD to Contribute to
Production of Toyota Cars

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

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

Development and Production of Plastic
Glazing

Operating
Profit¥29.6 billion

610.7 billion¥595.0 billion¥

Vehicle Sales

Engine Sales

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

700

350

600

30

250

500

25

200

400

20

150

300

15

100

200

10

50

100

5

(FY) 15

Toyota Industries Report 2019

16

17

18

19

0

(FY) 15

FY20196.8 billion

¥

35

300

0

36

FY2018FY2019

16

17

18

19

0

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

* Survey by Toyota Industries Corporation(FY) 15

16

17

18

19

Financial Section /Corporate Information

FY2018Net Sales

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

TOPIC

Promotion of ESG Initiatives

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

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

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

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

Company Introduction

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

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

Production line for the new RAV4

37

Business Activities

EngineBusiness Overview in Fiscal 2019

Highly Acclaimed by Customers
Worldwide

Turbocharger(mounted on Toyota 1ZS diesel engine)

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

GD diesel engine

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

38

Toyota Industries Report 2019

2.5-liter A25A engine for HVs

2.0-liter M20A gasoline engine

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

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

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

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

Financial Section /Corporate Information

Turbocharger(mounted on GD diesel engine)

Car Air-Conditioning
Compressor

Promotion of ESG Initiatives

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

Strategies and Businesses

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

Toyota 1ZS diesel engine

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

Company Introduction

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

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

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

39

Business Activities

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

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

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

DNDE

Germany

Germany

YST

DICH

MACI

China

China

U.S.A.

DIAM

U.S.A.
TICO

DNTS

Japan

Italy
SUBROS

TACK

India

China

TACG

U.S.A.
TICA

U.S.A.

TACI

Indonesia
Consolidated production bases

Licensed manufacturers

DNBR
Technical service stations

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

40

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

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

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

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

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

Sub-stand

Main control
standCharging stand for PHVs and EVs

Contributing to a Low-Carbon Society

Financial Section /Corporate Information

TDDK

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

Promotion of ESG Initiatives

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

Business Overview in Fiscal 2019

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

Strategies and Businesses

TOPIC

Car Electronics

Company Introduction

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

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

41Business Activities

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

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

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

Risks

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

FY2018Air-Jet Loom Sales

Net Sales(Thousand units)

10
8

4
2

FY20197.3 billion¥(FY) 15

16

17

18

19

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

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

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

4276.3 billion¥

FY2018Operating
Profit¥6.1 billion

Business Overview in Fiscal 20196

0¥65.5 billion

FY2019Toyota Industries Report 2019

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

Uster’s booth bustling with many visitors

Corporate GovernanceP44–50Relationship with Our Stakeholders

P51–60

Environmental Initiatives

P61–76

Staff who participated in the trade show

43

Corporate GovernanceCorporate GovernanceCorporate Governance StructureInternal Control System
ComplianceManagement of Confidential Information
Risk Management

P44–45
P46
P46–48P49
P49–50Toyota Industries strives to enhance its corporate value in a stable manner over the long term and maintains society’s
trust by earnestly fulfilling its social responsibilities in accordance with its Basic Philosophy. To that end, Toyota Industries
endeavors to further enhance its corporate governance in its efforts to maintain and improve management efficiency andthe fairness and transparency of its corporate activities.

Basic Perspective on Corporate Governance

Implementation Structure
Toyota Industries convenes monthly meetings of the Boardof Directors to resolve important management mattersand monitor the execution of duties by directors. We also
appoint outside directors who have a wealth of experienceand knowledge concerning business management. They
attend meetings of the Board of Directors and give opinions
and ask questions as deemed necessary. Through thissupervisory function of outside directors, we ensure thelegality and validity of the Board’s decisions as well as
directors’ execution of duties from an objective perspective.
The Management Committee, which is composed of
directors at the executive vice president level and above
as well as senior executive officers and other executives,deliberates on a variety of issues concerning important

Shareholders’ Meetings
Selection/Dismissal

Reporting

Cooperation

Independent Auditors

Accounting
Audit

Executive Compensation
Committee

Selection/Dismissal

Reporting

Audit & Supervisory Board
Board of Directors

ReportingExchange of Opinions

Executive Appointment
Committee

Appointment/Monitoring

Management Committee(Deliberates on important matters from management’s perspective)

Management Council

Selection/Dismissal
Cooperation

Audit & Supervisory
Board Office
Cooperation

Direction/
Supervision

Monitoring*1: Functional
Meetings

President

Business Operation Committee(Follows up on the execution of business operations)

Discussion/
ReportingMonitoring

Human Resources

CSR

Quality

Environmental

Production

Export Transaction
Controls

Procurement

Safety and HealthTechnologies

Profit Improvement

Reporting
Audit Dept.

(Reports on and confirms execution of business operations)Internal Audit

Functional Meetings*1, Committees*2
Senior Executive Officers

Business Divisions/In-House Company/Departments
Subsidiaries/Affiliates(As of June 11, 2019)
Toyota Industries’ Corporate Governance Reports are available at: https://www.toyota-shokki.co.jp/ (in Japanese).

44

Toyota Industries Report 2019

*2: Committees

These entities deliberate andfollow up on issues in respective areas.

As our policies concerning selection (and dismissal) of senior
management and appointment of director candidates, we
carry out comprehensive evaluations from the viewpointof placing the right persons in the right positions. We seeka balance between making sound and quick decisions,managing risk appropriately and monitoring execution ofbusiness operations and covering a specific function orbusiness division of Toyota Industries.
In appointing audit & supervisory board member
candidates, we also perform comprehensive evaluations
from the viewpoint of placing the right persons in the rightpositions, while ensuring a balance among the financial,accounting and legal insights, knowledge on our businessfields and the diversity of perspectives on corporate
management.
Based on these policies, we review proposals, exchange
views and confirm details at the Executive Appointment
Committee, which includes independent outside directors,
and submit these proposals to the Board of Directors forresolution.

Appointment of Independent Members ofManagement
As a publicly listed company, Toyota Industries strives toensure the fairness and transparency of management.
Following the Securities Listing Regulations stipulated by
the Tokyo Stock Exchange and Nagoya Stock Exchange,

Evaluation of the Effectiveness of the Board of
Directors
Through interviews with outside directors and audit &supervisory board members, Toyota Industries asks themto evaluate the effectiveness of the Board of Directors andcollects their feedback. The results of their evaluation aresummarized below.
(1)	Appropriate decision-making and management
oversight are ensured by holding several discussions
on important matters and following up on the progress
after the resolution of these important matters.
(2)	The atmosphere is open, encouraging directors tofreely make comments and engage in lively discussion.
(3)	Meeting materials are simple and clear, andexplanations are right to the point.
As shown above, Toyota Industries’ Board of Directors
has been evaluated as effective. We will continue to makeefforts for further improvement.

Audit & Supervisory Board System
Toyota Industries has adopted an audit & supervisoryboard system. Two full-time audit & supervisory board
members and two outside audit & supervisory board
members attend meetings of the Board of Directors tomonitor the execution of duties by directors. At the sametime, meetings of the Audit & Supervisory Board are held
once a month to discuss and make decisions on importantmatters related to auditing. The full-time audit & supervisoryboard members carry out auditing by attending primary
meetings and receiving reports directly from directors.
Additionally, we have assigned dedicated personnel, while
audit & supervisory board members monitor the legality

Financial Section /Corporate Information

Selection/Dismissal

Selection and Dismissal of Senior Management andAppointment of Director and Audit & Supervisory
Board Member Candidates

Compensation for senior management and directors
consists of monthly salaries and bonuses. Our policy is tolink their compensation with the business performance ofToyota Industries, reflecting their duties and performancein compensation. Bonuses, in particular, are determinedbased on consolidated operating profit of each fiscal year
while comprehensively taking into consideration dividends,
employees’ bonus level, trends among other companies,
medium- to long-term business performance and pastrecords of bonus payments.
As procedures to determine compensation, we review
proposals based on this policy, exchange views and confirm
details at the Executive Compensation Committee, which
includes independent outside directors, and submit these
proposals to the Board of Directors for resolution.

Promotion of ESG Initiatives

Toyota Industries regards the most important managerial
task is to earn trust broadly from society and enhance ourcorporate value on a stable, long-term basis. We aim to do
this by implementing our Basic Philosophy, which consistsof “Respect for the Law,” “Respect for Others,” “Respect
for the Natural Environment,” “Respect for Customers”
and “Respect for Employees,” and by earnestly fulfilling oursocial responsibilities. Our basic focus is on contributing
to the creation of an enriched society through businessactivities, and we believe it is essential to cultivate good
relationships with stakeholders, including shareholders,customers, business partners, creditors, local communities
and employees.
Accordingly, we strive to enhance our corporate
governance in order to maintain and improve management
efficiency, fairness and transparency. For example, wehave established a structure to quickly and flexibly respondto changes in the business environment and have beenworking to augment management oversight and ensure thetimely disclosure of information.
More specifically, the following basic policies drive ourinitiatives.
(1) We seek to ensure shareholders’ rights and equality.
(2)	We seek to promote appropriate collaboration with

Determination of Compensation for Senior
Management and Directors

Strategies and Businesses

stakeholders other than shareholders (including
customers, business partners, creditors, local
communities and employees).
(3)	We seek to conduct appropriate information disclosureand ensure transparency.
(4)	We seek to perform the roles and duties of the Boardof Directors appropriately in order to make decisions in
a transparent, fair, quick and resolute manner.
(5)	We seek to promote a constructive dialogue withshareholders.

respectively, to further enhance our corporate governanceToyota Industries has appointed as independent membersof management two outside directors and two outside audit& supervisory board members who are deemed to have noconflicts of interest with our shareholders.

Company Introduction

Corporate Governance Structure

management matters such as our corporate vision,
management policies, medium-term business strategies andmajor investments.
Toyota Industries has a divisional organization system,with significant authority delegated to each businessdivision. For especially crucial matters, however, we haveestablished the Business Operation Committee to enable
the president to meet with the heads of each businessdivision regularly to monitor and follow the status of theirbusiness execution. At meetings of the Management
Council, directors, audit & supervisory board members andsenior executive officers convene to report and confirm themonthly status of business operations and share overall
deliberations at Board of Directors meetings and othermanagement-related information.
In addition, issues pertaining to human resources,quality, production, procurement and technologies are
discussed at the corresponding functional meetings. We
have also put in place committees to deliberate on more
specific matters, such as corporate social responsibility(CSR), the environment and export transaction controls.
These functional meetings and committees discuss
important matters and action themes in respective areas.
Moreover, we strive to maintain and improve internal
controls by establishing the Audit Department andconducting internal audits of Toyota Industries’ businessdivisions and departments as well as our subsidiaries.

45

Corporate Governanceand efficiency of management through collaboration withindependent auditors and the Audit Department.
Initiatives for Enhancing Corporate GovernanceWe believe that compliance means both adhering to laws
and regulations as well as ethics and social norms. In orderto ensure compliance, it is vital to instill an awareness ofcompliance in each and every employee.
Under the strong leadership of top management, we
promote compliance throughout the Toyota Industries
Group by formulating a Code of Conduct and thoroughly
informing employees together with checking and monitoring
compliance.

Declaration by the president
Compliance Subcommittee

2 Formulating Rules

Employee Code of Conduct
Internal rules

Informing
3 Thoroughly
Manuals
Employees

Education on relevant laws and regulations

and4 Checking
Monitoring

Establishment and Reinforcement of
Implementation Organization
To promote compliance throughout the Toyota Industries
Group, we have established the Compliance Subcommittee(led by the head of the Corporate Headquarters) as asubordinate organization to the CSR Committee. Every year,
the subcommittee formulates an action plan and conducts afollow-up check on the progress of corresponding activities
twice during that year.
Organization for Promoting Compliance

Activity reports

Toyota Industries Report 2019

As for antitrust laws, in fiscal 2019 we reviewed ourantitrust law compliance structure, including an emergency
response structure and related regulations. Additionally,
we continue to operate a system to conduct a check andreview before and after employees of Toyota Industries
contact competitors and conduct enlightenment activities
during our antitrust law compliance month. In this way, we
aim to ensure thorough compliance with antitrust laws.

Thoroughly Informing Employees about Applicable
Laws and Regulations

Departments in charge of legal compliance: 11
Supporting department: 1

Internal Control Audit Report

Audit on internal controls by independent auditors

Educational material on bribery
prevention in English

Action plans

Compliance Subcommittee

Toyota Industries
Corporation

Educational material on bribery
prevention in Japanese

Consolidated subsidiaries
in Japan

Consolidated subsidiaries
outside Japan

Compliance committees

Compliance officers

Toyota Industries provides required legal knowledge toemployees according to their job ranks or positions,familiarizing them with the initial responses that should be
followed upon the occurrence of a problem and educatingthem on risk management. To increase complianceawareness, we also provide guidance on the Toyota
Industries Corporation Employee Code of Conduct throughnew employee education, rank-based education andworkplace meetings.
We have created and disseminated e-learning material
on one specific topic every month in order to cultivate adeeper understanding of compliance among employees

Management of confidential information; Import controls;
Prevention of misconduct; Safe and correct use of ladders andstepladders; Basics of contracts; Clear communication; Basics
of quality; Points to be noted when making money transfers orbank transfers; Commuting accidents; Blocking relationships
with antisocial forces

Early Detection and Prevention of Issues via
Compliance Hotline
The Toyota Industries Group has in place a whistle-blower
system for employees and their families (including suppliersin Japan) to report and seek consultation on compliancerelated issues. In Japan, North America, Europe and China,
in particular, we operate a compliance hotline (external
helpline) that allows employees and their families to seek
advice from external experts on compliance-related matterswithout being exposed to negative consequences. In fiscal
2019, we received 86 reports and inquiries from within
Toyota Industries and from its consolidated subsidiaries
in Japan on such matters as labor management, working
environment and ethics. After verifying each report andinquiry, we have taken appropriate action regarding eachcase. Our responses have been reviewed and judged
appropriate by external lawyers.
Through these initiatives, we ensure the early discovery
and prevention of issues and intend to become a “company
on which society places greater trust.”

Activities in the Toyota Industries Group Each company of the Toyota Industries Group has set
up a compliance committee (in Japan) and appointed acompliance officer (outside Japan) in an effort to promoteautonomous activities in respective communities incollaboration with the Compliance Subcommittee. In fiscal
2019, we continued to carry out activities in line with local
needs.

Financial Section /Corporate Information

CSR Committee

Annual financial report

Internal Control Report46

CSR self-assessment
Audit

Example Topics of e-Learning Materials in Fiscal 2019

Promotion of ESG Initiatives

Internal Control Assessment System (Based on J-SOX)

1 Leadership/
Organization

Toyota Industries has formulated and distributed to
executives and all employees the Toyota Industries
Corporation Employee Code of Conduct, which serves asconduct guidelines that should be observed by employees.
Consolidated subsidiaries in and outside Japan (31 in Japanand 79 outside Japan) have formulated their own Codeof Conduct appropriate to their respective business lines
and corporate cultures and have been working to instill anawareness among their employees.
Simultaneously, to prevent significant risks of bribery
and violations of antitrust laws, in addition to the Code of
Conduct we have formulated corresponding regulations
and been undertaking activities to familiarize employeeswith these regulations. Regarding bribery, Toyota Industries
formulated the Global Guidelines for Bribery Prevention.
Particularly, in countries with a high risk of bribery, eachcompany has developed internal rules in accordancewith the applicable laws in respective countries and been
conducting activities to familiarize employees with them. In
fiscal 2019, to support bribery prevention education at ourconsolidated subsidiaries in and outside Japan, we createda video in Japanese, English, Chinese, Spanish, Portuguese,Indonesian, Vietnamese and Thai.

of Toyota Industries Corporation and our consolidated
subsidiaries in Japan and to create an environment in which
employees foster compliance consciousness on their own.
In fiscal 2019, we invited external lawyers to holdexecutive legal seminars on “points to be noted in relation
with labor issues (work style reforms, various forms ofharassment, etc.)” for directors, managing officers and audit& supervisory board members.

Strategies and Businesses

In accordance with the Companies Act, in May 2006 Toyota
Industries’ Board of Directors adopted the Basic Policies
for the Establishment of an Internal Control System (Basic
Policies) to ensure compliance, risk management as well as
the effectiveness and efficiency of business operations by
incorporating these policies into each business segment’s
annual policies and day-to-day routine management. The
CSR Committee, at its meeting held in March, assesses the
progress made in implementing the Basic Policies in theyear under review and determines actions for the coming
year, including reviewing the implementation structure andenhancing day-to-day operational management.
Furthermore, based on the Financial Instruments andExchange Law (so-called Japanese Sarbanes-Oxley Act(J-SOX)), we have established and appropriately operated
an internal control system to maintain the reliability offinancial reporting. The system’s status and progress
are reviewed by the Audit Department and audited byindependent auditors. We determine which Toyota Industries
Group companies fall within the scope of J-SOX based on
the degree of impact on the reliability of financial reporting.
We determined that our internal controls over financial
reporting as of the end of fiscal 2019 were effective, andaccordingly, submitted an Internal Control Report in June
2019. The report was reviewed by independent auditors andjudged fair in their Internal Control Audit Report.

Review of internal
Improvement of Detection ofcontrols byinternal controls deficiencies Audit Department

Basic Elements of Compliance Activities

Basic Elements of Compliance Activities

Internal Control System

Internal control activities undertaken by eachdepartment and consolidated subsidiary(Establishment and operation of internal controls)

Formulation of Code of Conduct and Dissemination

Company Introduction

1971 Introduced a divisional organization system
2006 Reduced the number of directors (from 30 to 17)
2006 Introduced a managing officer system
2010 Appointed independent members of management
2016 Reduced the number of directors (from 17 to 11)2017	Conducted an evaluation of the effectiveness of the Boardof Directors
2019	Revised executive management structure and reduced thenumber and rank of executives

Compliance

Activities in North America We held the Compliance Officer Conference in North
America with the participation of compliance officers from19 companies. Topics included cases that provide good
examples of our response to reports made by whistleblowers, response to the leakage of confidential information
and reaffirming the need to comply with antitrust laws. Afterthe conference, these 19 companies have been conducting
activities in a mutually coordinated manner.

47

Corporate Governance

Activities in Europe 
In Europe, we held the Compliance Conference withfour major companies, including Vanderlande Industries
Holding B.V., which became a subsidiary in fiscal 2018, toincrease related knowledge and responsiveness by sharing
compliance activities of each company and carrying out
case studies of initial response to an emergency. As a tool
to support compliance officers, we have developed anddistributed a new checklist to evaluate the progress incompliance activities and encourage improvements.

Activities in Asia, Oceania and South America In fiscal 2019, we reaffirmed with compliance officers ofeight companies in Asia the roles and abilities requiredof compliance officers. We strive to raise complianceawareness of employees and deepen their understanding
regarding bribery prevention and response to reports madeby whistle-blowers.
In India, we held the Compliance Officer Conference withthree companies in India to share the progress of and issues
in compliance promotion activities of each company anddiscuss future activities.

Management of Confidential Information
Basic Perspective

Activity Examples

Activities up to fiscal 2018
Compliance Committees (in Japan) and Compliance Ofﬁcers (outside Japan) (As of March 31, 2019)38 companies

Compliance officer
in China (TIMC)

Andreas Lundh

Zhu Lingling

North America:

China:

21 companies

7 companies

Compliance officer
in North America(TINA)

Sheena Seger

Japan:

31 companies
Compliance officer
in Indonesia (TACI)

Raharjo Hardiyanto

New activities in fiscal 2019

Asia, Oceania and South America:

13 companies

TINA: Toyota Industries North America, Inc.
TMHE: Toyota Material Handling Europe AB
TIMC: Toyota Industries Management (China) Co., Ltd.
TACI: P.T. TD Automotive Compressor Indonesia

48

Toyota Industries Report 2019

• Checking the status of confidential information management at
Purchasing departments• Strengthening the security of production bases• Extending the target group of participants
for incident/accident response training
from the General Administration
Departments of the Head Office andeach plant and Engineering, Production
Engineering and Purchasing departments
to Planning and Sales departments
Incident/accident response training
within each business division, etc.

Basic Perspective
Based on the Basic Policies for the Establishment of anInternal Control System in compliance with the Companies
Act, Toyota Industries is working to strengthen regulations
and a structure to promote risk management. We regard
the following aspects as the basics of risk management andimplement initiatives accordingly.
(1)	Incorporating measures to prevent and reduce
potential risks into daily routines and following up on
the progress of implementation(2)	Ensuring quick and precise actions to minimize theimpact on business and society when a risk becomesapparent

Implementation Structure
Business divisions and other departments at the Head
Office develop and promote annual action policies that
integrate measures to prevent and control risks related
to quality, safety, the environment, personnel, exporttransactions, disasters and information security. Progress is
assessed and followed up by each functional management
entity such as the CSR Committee and the Environmental
Committee. At the same time, functional departments atthe Head Office such as those responsible for quality, safety
and the environment formulate rules and regulations andcreate manuals from a Group-wide perspective, including
consolidated subsidiaries. By confirming and following up
on the progress through operational audits and workplaceinspections, they provide support for raising the level of risk
management at each business division and consolidated
subsidiary.
We have also formulated the Crisis Response Manual,
which defines our initial response to a problem or a crisis.
This manual lays out basic rules to be followed when a risk
becomes evident and a problem or crisis occurs. The aim isto ensure quick reporting to top management, perform an
accurate assessment of the impact on society and businessactivities and minimize damage through appropriate actions.
The content is reviewed and revised as deemed necessary
in response to changes in businesses and the surrounding
environment.

Financial Section /Corporate Information

Europe:Compliance officer
in Europe (TMHE)

Activities by Toyota Industries• Rank-based group education• Restrictions on taking photographs on company premises• Attaching a security cable with a lock to all PCs to prevent
unauthorized removal off the premises• Restricting the copying of electronic data on recording media• Monitoring of email correspondence• Requiring employees to sign a confidentiality agreement uponretirement• Verifying the status of confidential information management at
Engineering and Production Engineering departments• Providing training on response to targeted attacks through e-mailActivities in collaboration with other Toyota Group companies• “Information Security Awareness Month” activities in May andOctober to raise employee awareness and conduct auditing by
checking off-the-premises removal of PCs and recording media, etc.

Risk Management

Promotion of ESG Initiatives

Compliance Officer Conference in China

We recognize that the personal information of customers,
employees and business partners as well as information
concerning our technologies and sales activities are assetsthat need to be protected. Accordingly, we are making ourutmost efforts to safeguard confidential information andstrengthen its management as one of the CSR areas.

*1: Head of each department*2: A person within the department, appointed by the head

Strategies and Businesses

Compliance Officer Conference in India

Toyota Industries has set up the Information Security
Subcommittee (led by an executive in charge of the General
Administration Department) as a subordinate organization
to the CSR Committee to promote proper management ofconfidential information, taking appropriate actions against
the risk of leakage of confidential information and complying
with laws such as the Unfair Competition Prevention Act andthe Act on the Protection of Personal Information.
To thoroughly implement the initiatives adopted by thesubcommittee, we appoint information security managers*1
and information security administrators*2 at eachdepartment. We strive to raise awareness about information
security among their staff by holding workplace meetingsand conducting self-checks regarding their information
security practices.
In fiscal 2019, to counter risk for leakage of confidential
information we implemented the following initiatives.
(1)	Verify the status of confidential information
management at each workplace		On-site inspection at and improvement guidance toPurchasing as well as Engineering and Production
Engineering departments(2)	Strengthen the security of production bases
		Enlightenment activities to prepare for cyber attacks
against our production bases and implementation ofrequired measures at production lines
Our consolidated subsidiaries in and outside Japan
also appoint respective information security managers
and information security administrators. We have also
developed common guidelines concerning management ofconfidential information, which have been distributed among

these subsidiaries, and follow up on their activities on aperiodic basis in our efforts to raise the level of confidential
information management throughout the Toyota Industries
Group.

Company Introduction

Activities in China 
In China, compliance officers from 10 companies attended
the Compliance Officer Conference. Through the creationand dissemination of educational materials for use at allbases in China as well as by comparing and re-examining
the rules of each company, we work to raise complianceawareness of employees and formulate and improve
appropriate rules on an ongoing basis.

Implementation Structure

Response to Possible Major Earthquake
We consider the impact of a major earthquake as one of
the most significant risks and have accordingly formulated
a business continuity plan. Based on the three basic
policies of placing maximum priority on human life, placing

49

Relationship with
Our Stakeholders

Corporate Governance

top priority on the recovery of local communities andensuring the quickest possible recovery, we are making
Company-wide efforts in three relevant areas, specifically,“precautionary, pre-disaster mitigation,” “initial response tobe followed immediately after the disaster” and “restorationof production.”collect information on damages to both inside and outside
the company premises, swiftly make decisions anddisseminate these decisions throughout Toyota Industries.
We are setting up a system to ensure prompt responseeven during nighttime or on a weekend or holiday by
selecting members from the functional departments who live
close to the Head Office.

Disaster Prevention Response Headquarters (Established in Kariya Plant)

e-Lab (information
systems headquarters)

Remote Sites

Educational Sites

Affiliated Companies

Company dormitories
Company resort
facilities

Suppliers

Adhering to a quality first approach, Toyota Industries practices monozukuri (manufacturing) that quickly responds tothe diverse, ever-changing needs of customers.

Collecting information from external sources

2. Training at Plant Response Headquarters
In fiscal 2019, we focused on practical training by using
predetermined procedures and forms and provided
appropriate training to the head (plant manager) andmembers of each Plant Response Headquarters. By
conducting training repeatedly, we intend to create astructure under which every member understands his or herrole and responds to the situation flexibly.

Efforts to Cultivate Personnel to Engage in Disaster
Prevention Activities
1. Training at Disaster Prevention Response
Headquarters
As one important role assigned to the Disaster Prevention
Response Headquarters that oversees Company-wide
disaster response, we conduct training in which employees

Toyota Industries Report 2019

4. Training for Identifying Disaster Damage
We repeatedly conduct drills jointly with our affiliatedcompanies and business partners in order to familiarize
them with the use of IT tools to quickly identify the damage
status during a disaster.

Types of Quality Sought by Toyota Industries

Quality levels that
customers truly
expectProduct quality●Safety●Eco-friendliness●Durability●Ease of use

Designquality●Brand strength●Corporate image●Sales●Service●Logistics●Workmanship

Manufacturing capabilities“Every one of us should fulfill the roles
assigned to us and deliver our best
quality products to customers.”
Under our “Customer First” philosophy, Toyota Industries
undertakes product development that meets customer
expectations by capturing market needs and understanding
how our products are actually used by customers.
At Toyota Industries, development of a new productentails defining specific goals to incorporate quality in every
stage from product planning and design to production

preparation, production, sales and after-sales services. We
perform a design review (DR), which allows a product toproceed to the next stage only when a responsible businessdivision head examines and approves whether the producthas reached the target quality level.

Quality Assurance Activities Based on
the Quality Guidelines
Quality forms the basis of our operations. As such, weformulated our Quality Vision, which defines our philosophy
in ensuring quality.
Quality Vision
Each and every member of the Toyota Industries Groupmakes sure to build in quality with ownership (Jikotei
Kanketsu) at their own workplaces and positions to supply
appealing products/services that exceed the expectationsof customers around the world with safe and reliable quality.

To achieve the goal of this vision, we issue the Quality
Guidelines, which identify priority quality-related issues tobe implemented in each fiscal year, to all production basesin and outside Japan and engage in quality assurance
activities accordingly. The implementation status of theseguidelines is reviewed by top management at the Quality
Functional Meeting chaired by the head of the Production
Headquarters*1 for identifying additional issues anddevising countermeasures. Issues raised are followed up at
meetings of the Company-wide Council of Heads of Quality
Assurance Departments chaired by the head of the Quality
Control Department*1. The Company-wide Council for
Quality Improvement, also chaired by the head of the Quality
Control Department*1, takes up issues in and addresses the
Quality Assurance Activities Based on the Quality Guidelines
Checking and identifying issues of Company-wide quality
status and progress in implementing the guidelines

Implementing Company-wide
guidelines

Quality Functional Meeting

Company-wide Council ofHeads of Quality
Assurance Departments

Financial Section /Corporate Information

Starting from fiscal 2017, we have been undertaking
enlightenment activities for employees and their families as ameasure to promote disaster prevention and avoid disasterinflicted damage at home. Specifically, we encourage themto take three actions: preventing the overturning of furnitureand securing an evacuation route; deciding how to contact
and where to meet with family members in a disaster; andstockpiling emergency goods, food and other necessities.
Up until fiscal 2018, our activities had targeted personnel
in charge of promoting disaster prevention and members of
initial response and production restoration teams. The scope
was extended to all employees in fiscal 2019.

3. Training Tailored to the Plant Environmenta) Power Restoration Drill
		Based on the procedures to restore power supplies,
including electricity and gas, which are essential inrestoring production activities, each plant conducts
genchi genbutsu (go and see for yourself) training on aperiodic basis. Through the training, we are identifying
problems and making improvements to step up ourefforts to ensure quick restoration activities.
b) System Restoration Drill		The e-Lab, responsible for managing Toyota Industries’
data servers, has created procedures to restore critical
data after a disaster. We conduct restoration drills
jointly with Toyota Industries IT Solutions, Incorporated,a consolidated subsidiary engaged in development
and operation of information infrastructures andsystems, and work to improve our readiness for quick
restoration.

Carrying on the spirit of founder Sakichi Toyoda, Toyota
Industries strongly believes that quality is the lifebloodof a company. Focusing on quality first and ensuring
customer safety and reassurance are our most important
responsibilities to our customers and form the basis of ourapproach to CSR.
Toyota Industries strives to maintain and improve thetotal quality of our corporate activities, which encompasses
not only “product quality” but also “marketing quality” and“management quality.” “Product quality” is embodied in
the safety, eco-friendliness, durability, ease of use andworkmanship of our products, while “marketing quality”
entails excellent sales and service in addition to these
attributes and “management quality” further enhances ouroverall corporate image and brand strength in terms of all ofthese attributes.

ent
em
nag
it y
g
Ma lity
ual
q
turin
qua
ufac
ting
Man lity
r ke
Ma
qua

Promoting Disaster Prevention at Home andRelated Enlightenment Activities

Confirming initial response actions“A product should never be sold unlessit has been carefully manufactured andfully tested in the commercial trial, withcompletely satisfactory results.”

Promotion of ESG Initiatives

Tokyo Office
Toyota L&F Customer
Center Tokyo
Toyota L&F Customer
Center Osaka
TMHG Training Center(Handa)Analyzing damage information

50

Reviewing policies on resumption ofoperations and how to return home

Strategies and Businesses

Disaster Prevention Structure

Kariya Plant
Obu Plant
Kyowa Plant
Nagakusa Plant &Morioka Works
Takahama Plant
Hekinan Plant
Higashichita Plant
Higashiura Plant
Anjo Plant

P51–52
P53
P54
P55–58
P59–60Company Introduction

We strive to reinforce our disaster prevention structure toenable a smooth transition from the initial response stage tothe production restoration stage.
The Disaster Prevention Response Headquarters,
led by the central general safety and health supervisor
and consisting of representatives from the functional
departments at the Head Office, is responsible for collecting
information from plants and other relevant parties andmaking Company-wide decisions based on the informationcollected.

Key Facility

Relationship with Our Customers
Relationship with Our Business Partners
Relationship with Our Shareholders and Investors
Relationship with Our Associates
Relationship with Our Local Communities

Relationship with Our Customers

Disaster Prevention Structure

Plant Response
Headquarters

Relationship with Our
Stakeholders

Quality Vision
Quality roadmap
Company-wide
Council for Quality
Improvement

A

P

PDCA*2cycle

DQuality Guidelines

C

Quality assurance activities at all bases in and outside Japan
Quality Guideline 1
Product development

Quality Guideline 2
Prevention of occurrence
and recurrence

Quality Guideline 3
Quality assurance atbusiness partners

Quality Guideline 4
Human resources/
workplace development51

needs of business divisions for discussion and resolution by
all heads of quality assurance departments. In fiscal 2019,the council explored ways to expand the use of quality
control by utilizing the Internet of Things (IoT), big data andartificial intelligence (AI).
*1: As of March 31, 2019*2: PDCA (Plan, Do, Check, Act)

Preventing Occurrence and Recurrenceof Defects

Toyota Industries provides systematic quality education
to all employees to help them acquire quality assurance
skills needed in actual operations. We have been soliciting
creative proposals to nurture human resources who think
and act on their own and create a better workplace throughall-employee kaizen activities, while at the same time
promoting the development of human resources who cantake a scientific approach to quality assurance through52

Toyota Industries Report 2019

We provide fair and equal opportunities to all potential
business partners. We comprehensively evaluate ourbusiness partners based on such factors as quality, price,adherence to delivery times, technological capabilities andmanagement information. We also assess their initiatives forsafety, the environment and compliance as we strive for thetimely and stable procurement of excellent products at lower
costs based on fair business transactions.

Co-Existence and Co-Prosperity Basedon Mutual Trust
We work hard to realize co-existence and co-prosperity withour business partners based on mutual trust. Every year,
we hold procurement policy meetings and top manager
seminars for major business partners to facilitate mutual
understanding and cooperation. In addition, we provide
such programs as quality control and technical skills training,
guidance directed toward kaizen at their production sites
and safety and health education throughout the year.

Reducing Environmental Impact throughEnvironmentally Preferable Purchasing
We aim to procure parts, raw materials andequipment from business partners that give
sufficient consideration to the environment.
In the sixth edition of ourEnvironmentally Preferable Purchasing
Guidelines, we added the aspirationsin 2050 of our Environmental Vision.
Accordingly, we have been strengthening
environmental management in our entire
supply chain and undertaking relevant
initiatives throughout the product lifecycle.

Environmentally
Preferable Purchasing
Guidelines

work with Hoeikai to provide
support to strengthen the
management platforms ofmember companies throughToyota Production System (TPS)
activities in manufacturing and
QC circle activities.

Risk management
Affiliated companies
Hoeikai
Subcontracting Law(Persons)
Toyota Industries
Affiliated companies

1,200
1,000
800
600
400
200
0

(FY)15

16

17

18

19

Realizing Fair Trade throughout theSupply Chain
As part of efforts to realize fair trade throughout the supply
chain, Japan’s Ministry of Economy, Trade and Industry
announced an action plan for proper management of molds
for parts. In response, Toyota Industries has set up a moldmanagement project to examine how we can “reducemolds, revise management and establish new systems” asstipulated in the action plan. In fiscal 2019, we laid down
clear rules for the reduction of molds and shared themwith our business partners. We will continue to undertake
activities to achieve the goals of the action plan.

Business Continuity Plan (BCP) Activities
for Possible Major Earthquake
In further promoting our BCP activities, we are making
concerted efforts with business partners to reduce associatedrisks by implementing specific measures. As one example,
we provided production restoration workshops (tabletop
exercises) again in fiscal 2019 mainly to our affiliatedcompanies and Hoeikai members. These workshops yielded
effective results, as we were able to formulate production
restoration measures corresponding to each site and its
current status against issues identified in advance.
In response to a growing need for quick identificationof damage in disasters other than earthquakes, we will add
wind and flood disasters, fires and explosions to the scopeof our BCP activities.

*3: Using statistical techniques to promote quality control and process improvements

TOPIC
For the last 35 years, we have been holding the SQCConvention to share the best SQC practices in various
stages of our operations, from planning and development
to production
and services.
In 2018,
presentations
started coveringcases utilizing big
data analysis.
Presentation for SQC best practices

Promoting Human Resources
Development

Efficient Procurement through Introductionof a Catalog Purchasing System

We proactively provide education to enhance procurement
knowledge both internally and externally. In fiscal 2019,
along with education on Japan’s Subcontracting Law, we
provided training on risk management by using subjects
closely related to business partners’ daily operations. They
included response to labor issues, appropriate sale ofwaste and response to the revisions to Japan’s Dispatched
Worker Act. These seminars were attended by some 300
participants from affiliated companies and Hoeikai, anorganization consisting of our business partners. We also

Toyota Industries introduced “e-TAPS,” a catalog system tomainly purchase secondary materials used within a plant, andafter deploying the system to business partners, initiated its
operation in May 2019. All products of our existing business
partners are evaluated in advance and cataloged on thesystem, thereby eliminating the previously required process ofrequesting a quotation for each purchase. This has enabledboth our business partners and Toyota Industries to shorten
the lead time for order placement and reduce the number ofadministrative processes.

Financial Section /Corporate Information

Promoting Human Resources andWorkplace Development

Our production bases outside Japan also promotekaizen efforts and human resources development throughQC circle activities. We help them undertake activities
corresponding to their respective environments by training
QC circle instructors and visiting them to give hands-on
instructions for promoting QC circle activities. As a venue
for presenting activity results, we hold the Global QC Circle
Convention every year since 2015 and provide workshop
sessions to raise skills.
As for nurturing human resources who can take ascientific approach, we encourage both the cultivation ofknowledge and practical use of the learned knowledge. As
specific examples, we hold presentations for sharing bestpractices of each business division and promoting mutual
improvement. We have also set up a structure to help
encourage the use of SQC and big data analysis.
As described above, to reinforce our foundation for
quality assurance, we are promoting the development of
human resources and an open workplace based on the
belief that manufacturing starts with nurturing excellent
personnel.

Fair and Equitable Business Transactions
Based on an Open Door Policy

Participants of PurchasingRelated Seminars

Promotion of ESG Initiatives

Since improving the quality of our products requires
concerted efforts with our business partners in and outside
Japan, we are strengthening joint quality assurance activities
with major business partners.
In each annual quality audit, we determine priority
areas, conduct genchi genbutsu (go and see for yourself)
inspections to confirm the improvement status of thepreviously identified deficiencies and provide quality
education on items that should be reinforced in order tocultivate a deeper understanding of kaizen (improvement).
In fiscal 2019, we continued to hold quality control
training sessions for the genchi genbutsu sharing of bestpractices of quality control activities as part of efforts toattain mutual improvement of each business partner’s quality
control personnel. We also started educating and nurturing
next-generation leaders in this area.
These activities enable our business partners to attainthe level of quality assurance required and establish aculture to foster quality assurance on their own.

The Commendation for Science and Technology by
Japan’s Minister of Education, Culture, Sports, Scienceand Technology is a prestigious award given to persons
who have contributed to technology improvements
through excellent creative ideas. Toyota Industries
has received the award for 34 consecutive years. Our
efforts to encourage
creative ideas among
employees havecontributed to thedevelopment of
human resources
who constantly seek
Commendation for Science and Technology
improvements.
presentation ceremony

Toyota Industries encourages open procurement and seeks co-existence and co-prosperity with our business
partners (suppliers) based on mutual trust. We also facilitate environmentally preferable purchasing, human resources
development, fair trade, disaster prevention activities for a possible major earthquake and more efficient purchasing.

Strategies and Businesses

Providing Support to Business Partners

TOPIC

Relationship with Our Business Partners

Company Introduction

If a defect is found in a product after its launch, the Quality
Assurance Department of the responsible business division
takes the lead in examining and identifying the cause bygoing back to its development, design and production
processes. We implement countermeasures both from theprocess and technological aspects and revise our new
product development process as necessary. Through thesemeasures, we strive to thoroughly avoid the recurrence ofthe defect in subsequent models.
Additionally, we make efforts to prevent the occurrenceof defects in all products we develop and manufacture in the
future. As an example, we provide education to production
bases in and outside Japan with an eye to preventing
defects by improving work procedures and processes.

quality control (QC) circle activities and by using statisticalquality control (SQC)*3 techniques and big data analysis.
To date, we have received 12 awards for employees’
creative ideas in the Creativity category in the Commendationfor Science and Technology by Japan’s Minister of Education,
Culture, Sports, Science and Technology. We have alsopresented the results of our QC circle activities at QC circle
conventions both internally and externally and received
multiple awards for our accomplishments.

Relationship with
Our Stakeholders

53

Basic Perspective

Building a Safety-Oriented Culture That
Aims for Zero Industrial Accidents

Measures to Prevent Explosions Caused
by Combustible Gas

In accordance with our fundamental policy of “creating people
capable of autonomously maintaining occupational safety
and health,” Toyota Industries strives to prevent industrial
accidents and occupational disorders as well as realize better
work environments by making equipment more immune toaccidents or disorders as early as in their design stage.
In fiscal 2019, we continued to promote primarily“activities aimed at establishing a safety-oriented culture”
and “safety and health measures from human, object andadministrative standpoints based on risk assessment.”
In establishing a safety culture, we believe it is vitalthat all associates, under the leadership of managers andsupervisors, engage in relevant activities with strong safety
awareness and a conviction that we can eliminate industrial
accidents. We have accordingly expanded the target groupof rank-based safety workshops. We also seek to nurturea mutual enlightenment-based safety culture, in which we
encourage workers to exercise point-and-call practices andremind those persons showing unsafe behavior to instillbasic safety procedures.
As for risk assessment, we aim to ensure the safety andsecurity of the workplace and reduce risks by investigating
and visualizing latent hazard sources within the workplace.
As the investigation of risks requires information on past
accidents and potentially serious near-accidents, we break
down and organize such information into smaller stagesof accident occurrence and disseminate it to improve thequality of risk assessment in each workplace.
In fiscal 2019, we experienced such unprecedented
accidents as injuries caused by inappropriate handling of oldequipment, to which we have made alterations to improve its
usability but have not notified sufficiently of such alterations,and other cases of injuries caused by a change in theplacement of goods, which went unnoticed. As a result, werecorded the frequency rate of lost workday injuries of 0.22.
We will step up our efforts more closely matched to each
workplace based on the characteristics of the recent accidents.

We have implemented basic countermeasures following
industrial accidents at other companies in 2016, which
involved an explosion in a heating furnace that uses
combustible gas. In fiscal 2019, we tackled a remaining issueof detecting incomplete combustion in a high-temperature
furnace. In collaboration with a gas detector manufacturer, we
examined the most effective combination of a detector andcooling equipment and other devices. After repeated testing,
we successfully improved the detection accuracy and cameup with a gas concentration detection system with excellent
maintainability. In the future, we will include this system asa standard feature when introducing a new furnace andpromote its use for existing furnaces. We have introduced it
at some of our bases outside Japan and plan to eventually
make this system a global standard feature. Upon installation,
we carry out genchi genbutsu activities to share technologies
with local employees and mutually work to improve thesystem’s management method.

General Shareholders’ Meeting
We hold our annual general shareholders’ meeting
early to avoid the date on which many companies holdtheir respective shareholders’ meetings so that moreshareholders can attend. We are further facilitating theexercise of voting rights of our shareholders by allowing
them to exercise such rights via the Internet and by joining
the electronic voting platform for institutional investors.
We held our 140th General Shareholders’ Meeting on
June 12, 2018, in which 440 shareholders participated.
Following the general shareholders’ meeting, we invited
our shareholders for a tour of a plant that manufactures ourmainstay lift trucks and a tour of the Toyota Commemorative
Museum of Industry and Technology established as a joint
project of the Toyota Group to foster a better understandingof our business activities.

Investor Relations Activities
For institutional investors and securities analysts, we
conduct quarterly briefing sessions to explain our financial
results, including business performance, as well as progressachieved at each business division and the future directionof our operations. In fiscal 2019, in addition to accepting
individual interviews with analysts and others, we hosted
an information session for our Logistics Solutions Business,
which we have been strengthening in recent years.
As for institutional investors outside Japan, we visit
major investors to explain our management policies andgrowth strategies. We also participate in conferences
hosted in Japan by securities companies and hold individual
meetings.
For individual investors, we hold company information
sessions mainly in regions in Japan where our bases arelocated to promote an understanding of our businessand management policies. Our Website also provides our
corporate history, overviews and technologies of eachbusiness as well as product information and initiatives todevelop technologies for the future.

Toyota Industries Report 2019

Opinions and requests we collect through various meansof communications with shareholders and investors are fed
back to executives and relevant business divisions to reflect
them in our future business activities.
Major IR Activities
For institutional investors and securities analysts in Japan•Quarterly financial results briefings •Individual interviews/visits•Small meetings •Teleconferencing •Business information sessions•Facility tours •Issuing/delivering Toyota Industries Reports
For institutional investors outside Japan•Individual interviews/visits •Teleconferencing•Participation in conferences hosted by securities companies•Issuing/delivering Toyota Industries Reports
For individual shareholders and investors•Company information sessions •Company-hosted plant tours•Issuing/delivering notice of general shareholders’ meeting•Issuing/delivering business reports

Earning High Scores in an External
Evaluation of Our IR Activities
Toyota Industries was named in the All-Japan Executive
Team rankings hosted by Institutional Investor, aU.S. financial magazine, in Japan’s Automobile Parts
Manufacturers sector. The rankings are based on balloting
by more than 1,000 securities analysts and institutional
investors throughout the world, and Toyota Industries
earned high scores in six out of the seven categories,
including Best CEO, Best CFO, Best IR Professional andBest Investor Relations Program.
Best CEOBest CFO
Best IR Professional
Best Investor Relations Program
Best Corporate GovernanceBest Analyst Days

Ranked 3rd overall
Ranked 3rd overall
Ranked 2nd overall
Ranked 3rd overall
Ranked 3rd overall
Ranked 1st overall

Returning Profits to Shareholders
Toyota Industries regards ensuring shareholder benefits as
one of the most important management policies.
Accordingly, we strive to continue paying dividends
at the consolidated dividend payout ratio of roughly
30% and meet the expectations of shareholders upon
comprehensively taking into consideration such factors as
business results and demand for funds.
For fiscal 2019, Toyota Industries increased annual cash
dividends by ¥5.0 over the previous fiscal year and paid
annual cash dividends per share of ¥155.0 (interim cash
dividend per share of ¥75.0 and year-end cash dividend pershare of ¥80.0).

Frequency Rate of Lost Workday Injuries(%)
1.60
Manufacturing industry

1.20

0.80

Toyota Industries
Good

0.00
(FY) 15

16

17

18

Measures to Prevent the Breaking of
Crane Wire Ropes
Since fiscal 2018, we have had several potentially serious
near-accidents within Toyota Industries and at its consolidated
subsidiaries, one of which involved the breaking of a crane wirerope that had passed a periodic inspection. We take the matter
seriously and have been investigating the life of wire ropes
jointly with a wire rope manufacturer. For the time being, ourfocus is on checking the status of internal damage of wire
ropes, which appear to be fine externally, caused by age
deterioration and the relationship between the internal damage
and wire diameters. For wire ropesthat appear to be fine externallybut having internal damage, wehave temporarily restricted thenumber of use and have been
ensuring safety during operation.

Checking the internal breaking ofwire ropes

Manufacturers of transportation
machinery and equipment

0.40

Sharing technologies with employees from bases outside Japan

Financial Section /Corporate Information

Our ultimate goal is to create safe and secure workplaces for everyone, where each and every associate can exercise
their diverse potentials and play active roles.

Promotion of ESG Initiatives

We aim to obtain an appropriate company valuation in stock markets through timely, appropriate and fair information
disclosure while promoting good communications with shareholders and investors.

Strategies and Businesses

Relationship with Our Associates

Company Introduction

Relationship with Our Shareholders and Investors

Toyota Industries continually carries out timely, appropriate
and fair information disclosure for shareholders andinvestors. In this way, we raise management transparency
so that we obtain an appropriate company valuation instock markets. We proactively provide not only information
required under disclosure laws and regulations but also
information on our management policy and businessactivities. Also, we engage in various investor relations
activities to facilitate productive dialogue with shareholders
and investors.

54

Relationship with
Our Stakeholders

19

Source: Survey on Industrial Accidents, Japan’s Ministry of Health, Labour and Welfare

Measures to Prevent Slip and Fall
Accidents
In recent years in Japan, there has been a sharp increase in
the number of slip and fall accidents. Facing the aging of the55Relationship with
Our Stakeholders

Initiatives for Health Management andImprovement

Age-based health education

56

Toyota Industries Report 2019

2,470 persons
1,117 persons

19 persons
5,069 persons

Individuals

Workplaces

Providing information on mental healthPreventive
measuresEarly
detection/
early
resolution
Preventing
relapses

Improving support via the introduction of a stress check system
Encouraging associates tobe more aware of their
Raising awarenesshealth and offeringof health-related
advice on healthhotlineimprovement measures
Interviews aspart of healthchecksUnderstanding thecauses of stress in theworkplace andimproving working
environments<Consultation system>• Industrial healthWorkplacestaff (in-house)check results• External institutions
viewing system

Return-to-work support

Enhancing Team Strength
Toyota Industries believes
Management Skills
Technical Skills
that it is essential to enhance Expertise/skills/know-how
QC, SQC, etc.
Ability to identify andteam strength so that eachresolve issues
Ability to merge multiple
associate can work withTeam Strength levels of skill
Leadershipvitality and the Company can
To pursue improvements
thoroughly and continuously
achieve sustainable growth.
We believe that teamSpirit of Harmony
Teamworkstrength is made up of
Well-roundedhumanity“technical skills” that form
the basis of manufacturing
operations, “management skills” to make maximum use oftechnical skills and a “spirit of harmony” that supports both.
While further enhancing our team strength, we are striving
to extend and hand it down beyond all business domains,

Establishing Work Environments Where
Diverse Human Resources Can Play
Active Roles
We are implementing a variety of measures to support adiverse range of human resources who can fully exercise
their capabilities. These include promoting active roles offemale associates, supporting the employment of persons
with disabilities and creating an environment in which older
associates can work more actively.
Promoting Active Roles of Female Associates
We have been formulating plans to harness a more diverse
range of human resources and continuing to carry out
activities since 2008.
We have introduced such measures as a shorter workhour system for child care and a telecommuting system. In
addition, by introducing “a return-to-work (“welcome-back”)
system,” which allows associates who have left work tocare for children and family members or to accompany theirspouse for a job transfer to get reinstated under certain
preconditions, we provide an environment for associates towork at Toyota Industries for longer years with peace of mind.
In terms of measures to promote more active roles forfemale associates, we have set the target of increasing theratio of female graduate recruits to 40% in administrative
positions and 10% in engineering positions, and tripling thenumber of female associates in managerial positions by
the year 2020 compared with 2014, and intend to step up
activities to achieve our goal.
In 2015, we set up a project to promote more activeroles for female associates, comprising 11 males andfemales from different departments. This project was key
for the identification of issues and formulation of policy
proposals in promoting the increased active roles of female
associates through discussions and exchanges among
project members and stakeholders. The results of these
discussions formed the basis for the development of aWinners of a bronze medal in the 56th
National Skills Competition*1: Skills competition for determining Japan’s
top young engineers

Number of Medals Won at the National Skills Competition
FY2015FY2016FY2017FY2018Gold medal

1

1

1

1

FY20190

Silver medal

3

2

3

4

0

Bronze medal

1

3

1

1

3

Total

5

6

5

6

3

[Management Skills]
We conduct TICO Business Practices (TIBP) training
targeting managers and associates in administrative andengineering fields, with the aim of mutually sharing thethinking and values that the Company gives importanceto, as well as to improve our associates’ problem-solving
capabilities. TIBP training programs are also provided at
subsidiaries outside Japan in our efforts to raise the level ofmanagement skills throughout the Toyota Industries Group.
[Spirit of Harmony]
We are creating a bright, energetic and caring work
environment that fosters a dynamic workforce and allows
every member to demonstrate his or her capabilities both as
an individual and as a team. We are proactively encouraging
Initiatives fro Promoting Active Roles of Female Associates~ FY2010

FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018Enhancing support systems•Introducing a shorter work-hour system for child care
•Extending the period of child care leave•Introducing a leave system to allow parental care of children with illnesses•Establishing on-site day care center•Introducing a “welcome-back” system*2•Introducing a telecommuting system•Expanding telecommuting options•Installing delivery lockers

FY2019•Introducing a financial aid
system for day care costs•Introducing a systemof leave for fertility
treatment

Cultivating corporate culture•Opening a Diversity Navi page on the intranet•Holding exchange meetings and lectures to share experiences of female associates in balancing
work and family•Project for promoting active •Female associate exchange meetings
roles of female associates
among 6 Toyota Group companies •Pre-maternity leave seminars•Lectures by male role models•Message from president•Seminars for female associates in managerial positions

Increasing the ratio of female associates•Seminars for female students in science track•Increasing recruitment of female associates from non-engineering university departments•Starting to recruit main career track female associates (for engineering positions in fiscal 1987
and administrative positions in fiscal 1997)

Financial Section /Corporate Information

Participants of age-based health education
Persons having completed guidance program on preventionof lifestyle diseases
Stop smoking enlightenment events•World No Tobacco Day: One-day no smoking (May 31)•No Smoking Days: Half-day no smoking (for eight days)
Participants of stop smoking campaigns(held jointly with health insurance association)
Participants of walking events(held jointly with health insurance association)

Introduced a Stress Check System in Fiscal 2017

Objective[Technical Skills]
To develop skills to support manufacturing, the Technical
Learning Center, one of our training facilities, plays thecentral role in associate education, offering basic skills
training at the Technical Training School and facilitating
efforts to enhance the skills of young technical staff throughin-house skills contests. We also work to cultivate highly
skilled specialists through participation in the national andinternational skills competitions.
At the 56th National Skills Competition*1 held in 2018, in
addition to receiving prizes in various other categories the
Toyota Industries team won
bronze medals in the“structural ironsmith” and“electrical welding” categories,
thereby attaining medals for the
18th consecutive competition.

Promotion of ESG Initiatives

Major Health Promotion Activities in Fiscal 2019

Improving Mental Health Support Systems

communication not only during work hours but also throughsocial gatherings, sports days, summer festivals, Groupwide ekiden long-distance relay races and cheer squads forvarious sports events.

Strategies and Businesses

As a task for the medium term, we are promoting healthimprovement of associates, mainly focusing on preventionof lifestyle diseases and mental health support activities, tocounter risks associated with aging and greater stress.
For prevention of lifestyle diseases, we conduct periodic
age-based health education for all associates. We also
feed back to associates the results of an annual healthcheckup and measurements conducted on the same day,including physical fitness, body fat percentage and amountof fat around internal organs, along with advice to improve
lifestyle habits. This health education is designed to provide
motivation for better health by letting associates think
about their health over the course of the one-day program.
Additionally, we will augment our initiatives to enable eachassociate to work and take active roles until the age of
65. We are now considering the enhancement of physicalfitness measurement programs and implementation of
measures to support associates’ self-help efforts.
For preventing and ameliorating symptoms of metabolic
syndrome, we provide health promotion guidance toassociates with mild obesity or who are slightly overweight,
in addition to specific health guidance required by theJapanese government. By doing so, we encourage
associates to improve lifestyle habits early on.

generations and geographic regions.

Company Introduction

Hazard markings on uneven floors and stairs

As part of mental health support activities, we have inplace a system to offer early consultation through a healthrelated hotline. Other activities include upgrading our selfcare/line-care education to prevent new cases of mental
health problems and operation of a return-to-work support
program for persons on long-term leave for prevention of
relapses. We have successfully achieved positive results
through these activities.
Under the stress check system introduced in fiscal
2017, we again conducted a check on all associates
in fiscal 2019. As in fiscal 2018, we fed back the check
results to all participants and workplaces with suggestions
for improvement. We also set up an individual interview
with a doctor for those wishing to do so and provided
improvement support as necessary to individual workplaces.
As a means to feed back the results to workplaces, weoperate an IT-based workplace check results viewing
system that allows the users to perform a precise search ofresults and tips for improvement. In the future, we will further
reinforce our workplace improvement activities by linking
them with associate awareness surveys.
For these efforts, Toyota Industries was again recognizedin the large enterprise category of the 2019 Certified Healthand Productivity Management Organization Recognition
Program (White 500) jointly promoted by Japan’s Ministry of
Economy, Trade and Industry and the Nippon Kenko Kaigi.
We will continue to undertake activities to promote bothmental and physical health and create a workplace thatenables all associates to work actively.

Mental health education

workforce ourselves, we are concerned about this upward
tendency and have been promoting activities to prevent slip
and fall accidents. Along with raising associate awareness,
we are doing everything we can to ensure intrinsic safety
and meticulously provide visual warnings and preventive
measures at hazardous points. These include installing antislip tapes and hazard markings on uneven floors and stairs
as well as fixing shoe cleaning mats onto the floor.

Cultivating career consciousness•Individual interviews with female assistant managers and their superiors•Formulating individual •Sending trainees overseas
development plans•Training for career development for assistant managers

Setting targets for the number of female associates in managerial positions
Tripling the number of female associates in managerial •“Eruboshi” certification
positions by 2020
Toyota Industries [25 (2014); 31 (2017); 75 (target for 2020)]*2: A system to enable reinstatement under certain preconditions57

associates in child care
(1) Sending associates overseas for training(Ongoing)
at an early stage in their careers(2) Career training and interviews for female
assistant managers
Career support
for female(3) Role model exchange meetings
associates(4) Early return-to-work support(pre-maternity leave seminars)(5) Early return-to-work support (financial
aid system for day care costs)(1) Expanding telecommuting options
Promotingflexible working (2) Establishing satellite offices
practices(3) Installing refrigerated delivery lockers

58

Toyota Industries Report 2019

Pre-maternity leave seminar

Refrigerated delivery lockers

range of jobs and higher quality of work, and at the sametime, to enable all associates working under time constraints
to fulfill their individual potential.
Employment of Persons with Disabilities
We respect the idea of people with and without disabilities
working together and sharing life and work values. Under
this basic policy, we continue to employ persons withdisabilities every year. They are assigned to a variety ofsections and work with other members to perform theirdesignated tasks. In fiscal 2019, the ratio of associates withdisabilities on a non-consolidated basis was 2.37%.

Activities as a Good Corporate Citizen
Based on “Respect for Others” as described in our Basic
Philosophy, we strive to fulfill our role as a good corporate
citizen in every region where we do business and actively
engage in social contribution activities to realize an enriched
and healthy society. In our activities that emphasize social
welfare, youth development, environmental protection andcommunity contribution, we not only provide cooperation andsupport through personnel, facilities, funds and know-how
but also strive to closely connect with participants. To foster
employees’ awareness of their ties to society and raise theirinterest in contributing to society, we make enlightenment
efforts such as sharing information on volunteer activities
and providing venues for volunteer activities that encourage
the participation of all employees. Employee associations*1
are actively undertaking various activities to contribute to
local communities, mainly in the areas of supporting welfare
facilities and protecting the natural environment.
*1: Voluntary organizations formed by employees at each job level

Ratio of Associates with Disabilities (Non-Consolidated)

Structure for Promoting Social
Contribution Activities

(%)
2.4
2.3
2.2
2.1
2.0
0

(FY)

15

16

17

18
19
(As of June 1 of each fiscal year)

The CSR Committee deliberates on policies of our social
contribution activities while the Social Contribution Group
within the General Administration Department at the Head
Office takes the initiative in carrying out activities.

Major Social Contribution Activities of Toyota Industries andGroup Companies
Theme

Activities

Events to interact with persons with disabilities· “Walk Rally (orienteering),” harvest festival, festival
Support for welfare facilities· Support for charity bazaars at facilities by providing goods· Volunteer work for facility cleanup/repair/pruning/weeding
Social·	Support for sales of products from facilities for persons with disabilities by providing
welfareopportunities to set up stalls· Volunteer listening activities at elderly care facilities
Supporting the Special Olympics Nippon National Summer Games in Aichi(P59)
Holding an Awareness-Raising Workshop for Facilitating an Understandingof Disabilities (France) (P60)
Support for Youth Invention Clubs· Monozukuri workshops for elementary school children during summer vacations· Holding handmade kite-flying competitions
Youth
Providing plant-hosted environmental education to elementary school children
development Holding mini concerts at elementary schools
Providing monozukuri lessons at school
Holding an After-School Craft Workshop for Elementary School Children (P59)
Hosting “Dream Yume Camp” for Children with Disabilities (Indonesia) (P60)
Initiatives for forest conservation· Tree thinning activities for conservation of prefecture-owned forests· Producing and donating benches that made effective use of thinned wood
Environmental· Tree-planting activities for reforestation
protection
Cooperating with an Animal Protection Program of the Bannerghatta
National Park (India) (P60)
Conducting county road cleanup activities in areas around plants (U.S.A.)
Participation in local traditional event (Mando Festival)
Road cleanup activities in areas around plants
Community Activities to raise awareness for traffic safetycontribution Crime prevention patrols
Joining the American National Red Cross Home Fire Campaign (U.S.A.) (P60)
Supporting infrastructure development in areas around plants (India)
Holding charity concert
Support for international NGO through volunteer activities to collect spoiled postcards
Other
and others
Periodic blood donation drives(Activities without country designation were conducted in Japan.)Creating a Work Environment for Older Associates
We focus on creating a better work environment for older
associates by adjusting the height of jigs in production lines
and modifying processes to compensate for deterioration ofvision so that they can work with less stress.
In addition, we hold “Seminars for an Active Life” forassociates reaching the age of 50 and 55 to give them an
opportunity to envision life and work for the next 10 years.
As an effort to support associates to balance their workand nursing care, we created the Handbook for Balancing
Work with Nursing Care and distributed it to associates
aged 40 or older to help them gain knowledge on nursing
care and to create a workplace culture that allows
associates to seek advice easily. We also hold lectures for
managers and seminars on balancing work with nursing
care for associates and their families.

Improvement activity on an engine
production line

Seminar on balancing workwith nursing care

Activity Examples of Toyota Industries (Japan)
Supporting the Special Olympics Nippon National Summer Games in Aichi

Social Welfare

Financial Section /Corporate Information(1) Launch, message from president(2) Awareness seminar for managerial staff
Changing(3) Follow-up on individual development plans (Ongoing)mindsetsamong(4) Getting spouses involved in pre-maternity
managerial
leave seminars
staff and across (5) Lectures by male role models
all associates (6) Promoting further engagement of male

Seminar for managerial staff members

The Special Olympics Nippon National Summer Games, which are hosted every four years by theSpecial Olympics (SO) Nippon Foundation*2, were held in Aichi Prefecture. With Kariya City andseveral other cities and a town within the prefecture hosting competitions, some 1,000 athletes
from across Japan gathered and enthusiastically competed in 13 events, including track and field,
soccer and volleyball. Toyota Industries made a monetary donation to the project and cooperated
in operating shuttle buses. During the three-day event, 53 employees volunteered to support theathletes and run the games.
*2: A global sports organization providing opportunities for people with intellectual disabilities to receive sports training and participate incompetitions as an effort to support their independence and social engagement

Holding an After-School Craft Workshop for Elementary School Children

Toyota Industries’ manager association visited an afterschool club at an elementary school and held a workshop
for 73 students, from first to sixth graders. The membersof the association served as instructors to carefully teachthe children to make simple mechanical toys and let themexperience the joy of playing with toys they have made on
their own.

Promotion of ESG Initiatives

Implementation
FY2016 FY2017 FY2018 FY2019 FY2020

With a view toward creating an enriched and healthy society and ensuring its sustainable growth, we fulfill our role asa good corporate citizen and actively undertake social contribution activities in every region where we do business.

Strategies and Businesses

Action Plan

Relationship with Our Local Communities

Company Introduction

Company-wide action plan in clarifying the initiatives for thisproject. In carrying out the action plan, we specifically focus
on the initiatives to change the mindset among managerial
staff and across all associates, provide career support for
female associates and promote flexible working practices.
Since fiscal 2017, we have held a seminar for a cumulative
total of more than 1,300 managerial staff members who
directly engage in the mentoring and development ofassociates. In fiscal 2019, we conducted enlightenment
activities to foster an understanding of the environment inwhich associates, both male and female, having limited
working hours due to nursing care or child care are working.
We also worked to raise awareness of human resources
development that takes into account their life events.
In order to create an environment to allow associates
who are balancing work and child/nursing care to workwith higher motivation and pursue career development, wehave enhanced our programs to support the early return
to work from a break in their career. Efforts include a fullday telecommuting system launched in October 2016;pre-maternity leave seminars started in December 2017 forassociates and their spouses to think about a way of working
after returning to work; and a financial aid system for day
care costs adopted in April 2018 for associates working
while taking care of infants younger than one year old. We
also introduced a system of leave for fertility treatment in
September 2018 and a loan system in April 2019.
As a result of these initiatives, the number of female
associates holding the assistant manager or higher position
has been increasing every year. In January 2016, we werecertified by the Aichi Labor Bureau as a “Female-Friendly
Company” and received “Eruboshi (“L Star”: L stands for
Lady, Labour and Laudable)” certification from the Ministryof Health, Labour andNumber of Female Associates
Welfare in October ofHolding Assistant Manager or
Higher Position
the same year. The latter(Persons)
certification is given
150
to companies making
excellent efforts in100
promoting active femaleroles in the workplace.
50
We are working to
improve workplaces so as0(FY)151617
18
19
to offer females a wider(As of March 31 of each fiscal year)

Relationship with
Our Stakeholders

Youth Development

Number of Participants of Social
Contribution Activities of Employee
Associations(Persons)
1,500
1,000
500
0

(FY) 15

16

17

18

19

Each employee association voluntarily and proactively
engages in social contribution activities, with the numberof participants remaining at a high level every year.

59Relationship with
Our Stakeholders

Environmental
Initiatives

Activity Examples of Consolidated Subsidiaries (Outside Japan)

FranceHolding an Awareness-Raising Workshop for Facilitating an Understanding of Disabilities

Social WelfareWith the support of an external organization, TMHFR held a workshop to raiseawareness for disabilities. The workshop is designed for employees without disabilities
to better understand the difficulties and feelings of employees with visual, hearing andother physical disabilities or those with a psychosomatic disease in their daily lives. The
event was attended by 81 employees, in which they experienced cooking with blinders
or earplugs. They shared the feeling of their challenged colleagues through the disability
simulations and exchanged information on disabilities.

Youth Development

P70–71
P72–75
P76

As one tenet under our Basic Philosophy, Toyota Industries
works to contribute to regional living conditions and social
prosperity and also strives to offer products and services
that are clean, safe and of high quality. Accordingly, inFebruary 2011, we established the Global Environmental
Commitment, a specific environmental action guideline,
to be shared and implemented throughout the Toyota
Industries Group. The entire Toyota Industries Group will
dedicate concerted efforts to realizing a prosperous life inharmony with the natural environment.
Aiming at realizing a prosperous life inharmony with the natural environment

Participants of the first Dream Yume Camp

Environmental Protection

Kirloskar Toyota Textile Machinery Pvt. Ltd. (KTTM)
Subsidiary producing textile machinery

Environmental risk
reduction
Society in harmony
with nature
Low-carbon
emission society

Environmental Management

Notional Diagram of Global Environmental Commitment

Following the 2015 adoption of the Paris Agreement, aninternational framework for action against climate change,
the establishment of a low-carbon emission society has
become a global common goal. For Toyota Industries as
well, the need to take further proactive measures is growing
as global environmental issues continue to become ofgreater concern, with more people becoming increasingly
conscious about the environment.
Under the circumstances, we have defined ouraspirations in 2050. The Global Environmental Commitment,
which represents our basic approach to environmental
activities, specifies four action themes, namely,1) establishing a low-carbon emission society;2) establishing a recycling-based society; 3) reducing
environmental risk and establishing a society in harmony
with nature; and 4) promoting environmental management.
As a milestone toward achieving our aspirations in 2050,
we have formulated the Sixth Environmental Action Plan,a five-year plan for the period from fiscal 2017 to fiscal
2021, and will resolutely undertake activities in accordancewith the plan. We have created environmental panels thatsummarize our aspirations and an action plan in order toraise employees’ awareness concerning the environmentand communicate our approach to outside parties.

Financial Section /Corporate Information

To expand animal protection activities among citizens, KTTM cooperated with aprogram of the Bannerghatta National Park located near its plant. The goal of the
program is to maintain a safe animal habitat by soliciting donations from individuals
and companies to cover animal rearing and medical expenses. KTTM signed a oneyear contract starting from October 2018 for the protection of nine animals and birds,
including Asian elephants, white tigers, ostriches and lion-tailed macaque, and donated350,000 rupees.

Recycling-basedsociety

Aspirations in 2050 and the Sixth
Environmental Action Plan

Aspirations in 2050
Animal protection activity

U.S.A.

Joining the American National Red Cross Home Fire Campaign

Community Contribution

Toyota Material Handling, U.S.A., Inc. (TMHU)
Subsidiary engaging in sales and servicing of materials handling equipment

TMHU joined the Home Fire Campaign promoted by the American National Red
Cross jointly with fire departments throughout the United States. Employee volunteers
received training at local fire departments and learned how to install smoke alarms andcreate a fire evacuation plan. They were then divided into small groups to visit residents
in their respective areas, explain the need to ensure fire safety at home, test smoke
alarms and install smoke alarms if residents do not have them. In 2018, 73 employees
participated in the campaign and installed 106 smoke alarms.

(1) Establishing a low-carbon emission society⇒ Globally take on challenge of establishing a zero CO2emissions society(2) Establishing a recycling-based society⇒ Take on challenge of minimizing the use of resources(3)	Reducing environmental risk and establishing a society inharmony with nature⇒ Generate positive influence on biodiversity(4) Promoting environmental management⇒ Enhance consolidated environmental management andpromote enlightenment activities

Promotion of ESG Initiatives

Cooperating with an Animal Protection Program of the Bannerghatta National Park

P63
P64–65
P66–67

P68–69Strategies and Businesses

Jointly with the Wheelchairs and Friendship Center of Asia (WAFCA)*3, Toyota Motor
Corporation (TMC) and DENSO Corporation, TACI hosted the first “Dream Yume Camp”
and invited 12 children with disabilities. This event aims to help children with disabilities
to act spontaneously and realize the importance of taking on challenges. The children
watched games at a disability sports event, in which TMC’s athletes participated,enjoyed interactive sessions with these athletes and joined in a wheelchair sport. At theend of the event, each child talked about his or her dream for the future.

India

P62

Establishing a Recycling-Based Society
Reducing Environmental Risk and Establishinga Society in Harmony with Nature
Environmental Management
Third Party Assurance ofEnvironmental Performance Data

Company Introduction

Global Environmental Commitment

P.T. TD Automotive Compressor Indonesia (TACI)
Subsidiary producing car air-conditioning compressors*3: Certified non-profit organization donating wheelchairs to children with disabilities as a means of going out and seeking to help
realize a society where everyone lives equally

P61

We have defined our aspirations in 2050 and launched the Sixth Environmental Action Plan in fiscal 2017.

Disability simulation

Hosting “Dream Yume Camp” for Children with Disabilities

Vision for Environmental Activities
Structure to Implement
Environmental Management
Environmental Impact Flow andEnvironmental Accounting
Sixth Environmental Action Plan
Establishing a Low-Carbon Emission Society

Vision for Environmental Activities

Toyota Material Handling France SAS (TMHFR)
Subsidiary engaging in sales and servicing of materials handling equipment

Indonesia

Environmental Initiatives

Raising employees’ awareness by using an environmental panel

Inspecting a smoke alarm60

Toyota Industries Report 201961

Environmental Initiatives

Structure to Implement Environmental Management

Environmental Impact Flow and Environmental Accounting

Positioning environmental response as one of its most crucial management issues, Toyota Industries isenhancing its environmentally oriented corporate management on a global basis through the promotionof consolidated environmental management.

In this section, we provide an overall picture of environmental impact resulting from our global businessactivities and report the results of environmental accounting (environmental conservation cost,environmental conservation benefits and economic benefits of environmental conservation initiatives).

Promotion of Environmental
Management System

Environmental Impact Flown Environmental Management Structure

Environmental Committee

President

Specialized committees•Team leader•Supervising auditors•Auditors

Product Environment Subcommittee

Chief environmental administrator
Admin office
Head Office
Corporate Planning
R&D
Purchasing
Quality Assurance
Human Resources
General Administration

Divisions
Materials Handling Equipment
VehicleProduction Environment Subcommittee
Company-Wide CO2Emission Reduction Conference
Company-Wide CO2 Zero
Emissions Challenge Subcommittee

EngineCompressor
Electronics

Division-Based
Promotion Committees

Textile Machinery

As in the previous fiscal year, in fiscal 2019 we
conducted introductory educational courses to foster theknowledge needed for environmental management and an
introductory educational course for environmental audits
to cultivate knowledge and techniques of internal audits.
As department heads and other personnel in managerial

Environmental Audits
Toyota Industries implements annual internal environmental
audits as well as external audits carried out by anindependent third-party institute.
In fiscal 2019, the external review identified one minor
non-conformance issue. We have taken corrective action
and disseminated the details throughout the Company forthe prevention of recurrence.
We continued to conduct internal audits under themutual, interdivisional audit system. We strived to upgrade
our auditing capabilities by organizing audit teams with thedual goals of fostering the development of auditors andincreasing audit efficiencies. In the area of audits, our focus
was placed on environmental policy management and onsite environmental management, and we clarified how mucheach business division contributes to overall environmental
management and checked if there are any environmental
risks in each division.

n Companies Subject to Consolidated Environmental Management (As of March 31, 2019) * Only the names of production bases are listed.

Asia: 14 production companies;

20 non-production companies

Toyota Industry (Kunshan) Co., Ltd. (China)
TD Automotive Compressor Kunshan Co., Ltd. (China)
Yantai Shougang TD Automotive Compressor Co., Ltd. (China)
Zhejiang Aichi Industrial Machinery Co., Ltd. (China)
Uster Technologies (Suzhou) Co. Ltd China (China)
Cascade Xiamen Forklift Truck Attachment Co. Ltd. (China)
Cascade Hebei Forks Co. Ltd. (China)
Tailift Machinery & Equipment (Qingdao) Co., Ltd. (China)
Toyota Industries Engine India Private Limited (India)
Kirloskar Toyota Textile Machinery Private Limited (India)
P.T. TD Automotive Compressor Indonesia (Indonesia)
Cascade Korea Limited (Korea)
Tailift Material Handling Taiwan Co., Ltd. (Taiwan)
Toyota Industrial Equipment Vietnam Co., Ltd. (Vietnam)

62

Toyota Industries Report 2019

City gas

90,172 km3N

LPG

5,112 tPetroleum products

3,041 kl

Coal products

7,802 t

LNG

1,406 tR&D/Design

Procurement

Productionn Raw Materials [consolidated]

Transportation/Sales

Raw material consumption

Greenhouse gases other than CO2

3,485 t-CO2

CO2 from logistics

26,481 t-CO2

SOx (Sulfur oxides)

359 kgNOx (Nitrogen oxides)

140 t

VOC (Volatile organic compounds)

n Chemical Substances[Japan consolidated]
Emissions/transfers of PRTR
law designated substances

430 t

n Waste [consolidated]

830,588 t

110,466 t

Waste generationn Water [consolidated]
Water consumption

1,369 tUsage

4,620 km3

n Into Waterways[consolidated]

n Chemical Substances

33 t

Water pollutants[Japan consolidated]
PRTR law*2 designatedsubstances

Recovery/Recycling

1,379 tDischarge of treated wastewater

2,463 km3

*1: Terajoule is a unit used to measure heat. 1 TJ = 1012 joules*2: Short for Pollutant Release and Transfer Register, the PRTR law is a scheme whereby businesses measure the release and transfer of PRTR designated pollutants and report theirperformance to the government. The government then compiles this data and releases it to the public.

Environmental Accounting
Fiscal 2019 Environmental Accounting*3
Scope of data collection: Toyota Industries Corporation
Period of data collection: April 1, 2018 – March 31, 2019

67 non-production companies

Toyota Material Handling Manufacturing France SAS (France)
TD Deutsche Klimakompressor GmbH (Germany)
Toyota Material Handling Manufacturing Italy SpA (Italy)
L.T.E. Lift Truck Equipment S.p.A (Italy)
Cascade Italia S.r. l. (Italy)
Toyota Material Handling Manufacturing Sweden AB (Sweden)
Uster Technologies AG (Switzerland)
Cascade (U.K.) Limited (U.K.)
Vanderlande Industries B.V. (Netherlands)
SIMAI S.p.A. (Italy)
Vanderlande Industries Espana S.A. Sociedad Unipersonal (Spain)

1,309,763 MWh

North America: 18 production companies;

45 non-production companiesJapann Non-consolidated: 10 production bases;
14 non-production basesn Consolidated subsidiaries in Japan: 15 production
companies; 21 non-production companies
Tokyu Co., Ltd. (Aichi)
Tokaiseiki Co., Ltd. (Shizuoka)
Miduho Industry Co., Ltd. (Aichi)
IZUMI MACHINE MFG. CO., LTD. (Aichi)
Haratechs Corporation (Gifu)
Mino Tokyu Co., Ltd. (Gifu)
Altex Co., Ltd. (Shizuoka)
Aichi Corporation (Saitama)
Nagao Kogyo Co., Ltd. (Aichi)
Unica Co., Ltd. (Aichi)
Nishina Industrial Co., Ltd. (Nagano)
Iwama Loom Works, Ltd. (Aichi)
HANDA Casting Company (Aichi)
Takeuchi Industrial Equipment Manufacturing Co., Ltd. (Aichi)
Sugiyama Industries Co., Ltd. (Aichi)

Oceania: 1 production company;

16 non-production companies

Cascade (Australia) Pty. Ltd. (Australia)

Cascade (Canada) Ltd. (Canada)
Toyota Industrial Equipment Manufacturing, Inc. (U.S.A.)The Raymond Corporation (U.S.A.)
Raymond-Muscatine, Inc. (U.S.A.)TD Automotive Compressor Georgia, LLC (U.S.A.)
Michigan Automotive Compressor, Inc. (U.S.A.)
Indiana Hydraulic Equipment Corp. (U.S.A.)
North Vernon Industry Corp. (U.S.A.)
Cullman Casting Corporation (U.S.A.)
Toyota Industries Compressor Parts America, Co. (U.S.A.)
Uster Technologies, Inc. USA (U.S.A.)
Cascade Corporation (U.S.A.)
PSM LLC (U.S.A.)
American Compaction Equipment, Inc. (U.S.A.)
Tailift Material Handling USA Inc. (U.S.A.)
Bastian Solutions, LLC (U.S.A.)
Bastian Automation Engineering, LLC (U.S.A.)
Vanderlande Industries Manufacturing USA Inc. (U.S.A.)

Latin America: 1 production company;

9 non-production companies

Toyota Material Handling Mercosur Indústria e Comércio deEquipamentos Ltda (Brazil)*3: Environmental accounting data is collected in compliance with the Ministry of the Environment’s Environmental Accounting Guidelines 2005 Version.

n Environmental Conservation Cost
Category
Pollution prevention costs
Business Global environmental
area costs conservation costs(Millions of yen)

FY2019Environmental Impact

FY2018Investment Expenses Investment Expenses
37

n Environmental Conservation Beneﬁts

150

596

195

1,922 t decrease

Generation of waste products

3,232

675

2,825

158

110

261

124

Upstream/downstream costs

0

388

0

449

Management costs

0

214

0

187

Item

Research and development costs

78

4,284

78

3,882

Revenue

Social contribution activity costs

0

103

0

103

Environmental remediation costs

2

0

0

0

801

8,481

1,610

7,765

Total

9,282

9,375

472 t decrease

Water

526

Resource recycling costs

Comparison with Previous Fiscal Year

CO2

Financial Section /Corporate Information

Europe: 11 production companies;

Electricity

941,371 t-CO2

Promotion of ESG Initiatives

Environmental Conservation Organization by manufacturing plants(environmental risk management overseen by plant managers)

Auditor training by an external lecturer

CO2 emissions

17,514 TJ*1

Strategies and Businesses

Internal audit
Responsible internal auditor

n Into the Air [consolidated]

OUTPUT

Committees

Energy consumption

INPUT

Organizations

Environmental
Impact Flown Energy [consolidated]

Company Introduction

Toyota Industries has positioned environmental response
as one of its most crucial management issues. To quickly
reflect top management’s decisions on business operations,Toyota Industries has established and been operating a
Company-wide integrated environmental management
system (EMS), with the president at the top.

positions proactively attended these courses, we were able
to promote the enhancement of environmental management
and the development of internal auditors.
For internal auditors, we provided auditor training
by an external lecturer for upgrading the quality of ourinternal audits. The curriculum covered a method to audit
on-site environmental
management, which isone of the priority audit
items for fiscal 2019, andparticipants accordingly
learned required skills.

19,833 m3 decreasen Economic Beneﬁts of Environmental Conservation Initiatives(Millions of yen)

Cost reduction

Total

Details

AmountReturns from sale of recycled waste products

5,530

Energy cost reductions

15

Cost reduction by resource savings(including reductions in amount of water use,
wastewater treatment costs, etc.)

34
5,579

63

Environmental Initiatives

Sixth Environmental Action Plan
The results of our activities in fiscal 2019 showed steady progress across the board toward achieving
respective targets for fiscal 2021.

Progress of Sixth Environmental ActionPlann Production Related
Segments

Subject

Reduce CO2 emissions from productionrelated logistics• Improve transportation efficiency throughsuch measures as modal shift and bettercargo loading efficiency

CO2
emissionsfromlogistics

Further reduce emissions of substances ofconcern• Minimize the use of substances ofconcern by promoting efficient production
activities

Total
emissions2006

GlobalNonconsolidated

Nonconsolidated

Emissionvolume perunit ofproduction*1

Emissionvolume perunit ofproduction

–26%

–26%

–30%

2007

–32%

Reduce emissions to improve
air quality in urban areas in all
countries and regions• Develop engines that meet future regulations• Developed next-generation engine

Manage chemical substances
contained in products• Investigate chemical substances contained in products
and manage switching over of SVHC*3 and othersubstances of concern to other substances• Supported chemical substance management
at affiliated companies outside Japan• Conducted survey on chemical substances
contained in productsn Others–30%

Reducing
Environmental
Risk and
Establishing aSociety inHarmony with
NatureAction Policies–29%

Augment and promoteconsolidated environmental
management• Build a global environmental management system andpromote related activities to:Comply with environment-related laws in each country
and region
Formulate a medium-term plan based on visualizationof environmental risks and conduct activities to• Promoted mitigation activities
prevent risks from occurring• Inspected environmental risks at production
Enhance risk communication with relevantbases in Japan
organizations and local residents
Achieve the highest-level environmental performancein each country and region• Enforce strategic environmental management that
integrates environmental activities and business activities

Enhance education andenlightenment activities• Extend the scope of Toyota Industries’ enlightenment
activities to consolidated subsidiaries in and outside
Japan• Give back to society the outcomes of enlightenment
activities• Held environmental seminar

Promote environmental
activities in collaboration withbusiness partners• Ensure compliance with laws and regulations andimprove environmental performance based on theEnvironmentally Preferable Purchasing Guidelines• Held briefing sessions for business partners inJapan• Pursue higher brand image through proactive
information disclosure• CDP*4 climate change: ranked A (on aperformance band of A to F)• CDP water security: ranked A (on aperformance band of A to F)• Nikkei’s Environmental Management Survey:
ranked 13th (out of 1,731 target companies)• Received prize for Biodiversity Action Award
Japan 2018 (animal path within the Higashiura
Plant)

Improve eco-conscious brand
image
2006

–36%
(24g/m2)

FY2019 Achievements

Augment activities related toprotection of biodiversity

–27%

2006

Specific Actions• Share the biodiversity guidelines across all Toyota Group
companies and contribute to the expansion of a habitat
for living organisms• Participated in All Toyota Green Wave Project• Formulate and promote plans to link activities and• Devised biodiversity conservation action planconnect green zones by undertaking activities forwithin Toyota Industries premises
conservation of biodiversity throughout the Toyota
Industries Group, including at consolidated subsidiaries
in and outside Japan–28%

Promoting
Environmental
Management–33%

Emissionvolume perunit ofproduction

Reducing
Environmental
Risk and
Establishing aSociety inHarmony with
NatureSegments–33%
Emissionvolume perunit ofproduction

Nonconsolidated(automobile
body)

–10%

2006

Nonconsolidated

VOC*2emissions–14%• Developed fuel cell lift truck• Developed next-generation electriccompressor• Developed air-jet loom
• Developed new vehicle• Reduce use of resources through longer product life
Implement initiatives to promote • Reduce use of resources through standardization,
Establishing a• Developed next-generation engine
3R (reduce, reuse and recycle)
modularization and reduction of components
Recycling-Based• Developed reach-type electric lift truck
design for effective resource• Reduce use of resources through development ofSociety• Developed new DC-AC inverter
utilization
technologies to enable weight reduction and downsizing• Promote reuse of components and resources

Sixth Environmental Action Plan TargetsJapan
consolidated
Waste
generation
volumeTargets• Develop technologies that contribute to an even greaterlevel of energy efficiency• Develop products and technologies that respond toelectrification• Develop technologies to enable weight reduction• Reduce energy loss
• Develop technologies for the realization of a hydrogenbased society

FY2019 Achievements–36%(24g/m2)

Financial Section /Corporate Information

Reducing
Environmental Risk
and Establishing aSociety in Harmony
with Nature

CO2
emissionsControl Items Base Year (FY) Achievements

Establishing a Reduce CO2 emissions throughLow-Carbon
product and technology
Emission Society development

Specific Actions

Promotion of ESG Initiatives

Establishing a
Recycling-BasedSociety

Nonconsolidated

Reduce CO2 emissions from production
activities• Develop and introduce productionengineering technologies with lower CO2
emissions• Reduce CO2 emissions by fully
implementing improvement activities on adaily basis• Develop innovative CO2 reduction
technologies that utilize clean energy• Manage greenhouse gases other than
CO2

Promote measures against resource
depletion by recycling waste• Reduce the volume of discarded materials
by taking action at the source, such as
improving yields and other measures• Promote internal reuse
Promote effective resource utilization in
production activities• Reduce use of packaging materials• Monitor water input and output in eachcountry/region and develop and promote
appropriate measures

Scope

Action Policies

Strategies and Businesses

Establishing a
Low-Carbon
Emission Society

FY2021
Targets

FY2019 Achievements

Action Policies/Specific Actions

Sixth Environmental Action Plan Targets
Segments

Company Introduction

With an eye to realizing a prosperous life in harmony with
the natural environment through the establishment of asustainable society, we formulated the Sixth Environmental
Action Plan for the period from fiscal 2017 to fiscal 2021
and are promoting activities according to the plan. Throughactivities undertaken during fiscal 2019, we made steadyprogress toward achieving respective targets for fiscal 2021.

n Product Related*1: We manage emissions in each business by using either unit of production or unit of sales as a basic unit of emissions. The weighted average of reduction rates of all businesses is used as
our management index.
*2: Volatile Organic Compounds*3: Substances of Very High Concern*4: An international not-for-profit organization established in the United Kingdom in 2000 to encourage companies and governments to reduce greenhouse gas emissions, conserve water
resources and protect forests† Details of the Sixth Environmental Action Plan are available at:https://www.toyota-industries.com/csr/environment/management/plan_6/

64

Toyota Industries Report 201965

Environmental Initiatives

Establishing a Low-Carbon Emission Society
We position the curbing of global warming as our most crucial environmental task. We have been working
to reduce CO2 emissions in our global business activities and at the same time accelerate our efforts todevelop more environment-friendly products.

Promoting Thorough Energy Savings

Our Approach

Total emissions (non-consolidated)

14
26

FY21 target:% reduction (vs FY06 level)

10% reduction(vs FY06 level)

Before improvement

Emission volume per unit of production (global)
FY21 target:% reduction (vs FY06 level)

Exhaust outlets

26% reduction(vs FY06 level)

Hot air outlets
Coating dry-off ovenInOut

* Facility that produces hydrogen by using electricity generated by renewable solar powerand can compress, accumulate and feed resulting hydrogen to vehicles

1.00
1.00
Total
emissions
(kt)

1,000

n Message from a Stakeholder
The Aichi prefectural government isencouraging the use of low-carbonhydrogen that does not emit CO2 bothwhile in use and production in orderto accelerate its efforts against global
warming.
Toyota Industries’ H2 PLAZA isa model project in the field of lowToshihiro Morita
Director, Environmental
carbon hydrogen production and use
Bureau, Aichi Prefecture
within a plant. Aichi Prefecture hopes
to disseminate information on such examples to increase
and broaden the use of low-carbon hydrogen.
Moreover, the development and manufacture of FC
lift trucks and other materials handling equipment willlead to the expanded base for hydrogen use, and wehope to see further developments in this area toward thebuilding of a hydrogen-based society.

Mechanism of H2 PLAZA (Hydrogen Station for FC Lift Trucks)n CO2 Emissions (Non-consolidated/Consolidated subsidiaries inand outside Japan)
Non-consolidated
Consolidated subsidiaries in Japan
Consolidated subsidiaries outside Japan
Reduction rate (non-consolidated)
Reduction rate (consolidated)

H2 PLAZA opening ceremony

Hydrogen

Reduction rate

Electricity

Financial Section /Corporate Information

Under the Sixth Plan, we are working toward achieving
fiscal 2021 targets of reducing total non-consolidated CO2
emissions by 10% and global emission volume per unit ofproduction by 26%, both from the fiscal 2006 level.

Bird’s-eye view of H2 PLAZA

Promotion of ESG Initiatives

FY2019 Results

The Takahama Plant, a materials handling equipment
production base in Aichi Prefecture, has been promoting
CO2 emissions reduction activities along with systematicenergy-saving efforts by proactively using solar and otherrenewable energy and hydrogen.
The plant constructed H2 PLAZA, a hydrogen stationthat uses renewable energy*, on the plant premises andstarted operations in March 2019. The H2 PLAZA produces,compresses and charges hydrogen to fuel cell (FC) lift trucks
used within the plant according to their operational status.
Through the efficient use of energy, this helps to reduce
CO2 emissions. Moreover, FC lift trucks do not emit CO2
while in operation. They are able to be fully CO2 free fromhydrogen production to operation since they are charged
with hydrogen generated by using solar or other renewableenergy. This hydrogen station is subsidized by the Ministryof the Environment for CO2 emissions reduction projects.
The Aichi prefectural government runs a program tocertify hydrogen generated by using renewable energy as
low-carbon hydrogen. Our hydrogen station is the third
low-carbon hydrogen production project certified under the
program in Aichi Prefecture, following the one at Chubu
Centrair International Airport and another project.
Since commencing sales in November 2016, Toyota
Industries’ FC lift trucks have been adopted by factories
and airports around Japan for their excellent environmental
performance and enhanced convenience of completing
charging in about three minutes. In fiscal 2019, we increased
the number of FC lift trucks used at the Takahama Plant.
FC lift trucks are expected to reduce the environmental
impact at logistics sites of various industries and contributeto realizing a hydrogen-based society. Accordingly, Toyota
Industries will continue to promote global environmental
conservation through the effective use of hydrogen.

Strategies and Businesses

Summary CO2 Emissions (Production Activities)

The Nagakusa Plant, a vehicle assembly base in Aichi
Prefecture, has been promoting comprehensive energysaving activities.
In fiscal 2019, the plant achieved a significant result in its
efforts to save energy used in a coating dry-off oven.
In a conventional oven, vehicles had been carried fromthe previous process into the oven on a hanger, and this had
required the heating of these hangars and extra space within
the large oven, causing the wasteful use of energy.
To reduce such wasteful consumption, the plant
replaced hangars with carts and started circulating carts
within the oven to maintain its internal temperature.
Changes also included designing the optimum shape forthe oven to eliminate the extra space inside and moving the
hot air outlets above the exhaust outlets after reviewing theirplacement to ensure efficient air circulation. Through thesechanges, the plant achieved uniform heat distribution within
the oven with a smaller amount of energy.
The improvement allowed the plant to reduce its annual
CO2 emissions by approximately 354 tons.

Establishing H2 PLAZA Hydrogen Station at the
Takahama Plant

Company Introduction

For Toyota Industries, dealing with global warming is
not just a “risk.” It also presents “opportunities” in doing
business to both differentiate ourselves by leveraging ourtechnology-based product appeal and conduct ecoconscious production activities.
In our aspirations in 2050, we set a goal ofestablishing a zero CO2 emissions society on a global
basis and have been making efforts in various fields. In
the area of product development, our focus includes
electrification and increasing the fuel efficiency of engines.
In production activities, promoting thorough energy
savings and utilizing renewable energy and hydrogen are
the two pillars of our activities. As specific efforts, we will
adopt solar and other renewable energy sources andeffectively utilize hydrogen while thoroughly eliminating
wasteful use of energy in production processes andincreasing the efficient use of energy.

Reducing Energy Used in a Vehicle Coating
Dry-Off Oven

Utilizing Renewable Energy and Hydrogen

1.0
0.78

0.76

0.73

0.73

0.70

940

913

909

0.74

0.74
0.70

After improvement

0.8
0.6

Solar power generation

Water electrolysis tank

Buffer tankGood

35 MPaHot air outlets
Exhaust outlets
Coating dry-off oven667

40 MPa0.8→40 MPa

Accumulator

Compressor

500

In
Good

66

0

(FY) 06

Toyota Industries Report 2019

Out
FC lift truck

17

18

19

Dispenser

21

67

Environmental Initiatives

Establishing a Recycling-Based SocietyWith a view to establishing a recycling-based society, we have been striving to reduce waste and theconsumption of water and other resources.

Our Approach (Waste)

FY2019 Results

33

FY21 target:% reduction (vs FY06 level)

29% reduction(vs FY06 level)

Waste generation volume per unit of production(non-consolidated/consolidated subsidiaries in Japan)

33

27% reduction(vs FY06 level)n Waste Generation(Non-consolidated/Consolidated subsidiaries in Japan)
Non-consolidated

Before improvement(1)
Feedingsand(2)Preheating(3)
Creating
a sandcore

Reduction rate (Non-consolidated/consolidated subsidiaries in Japan)

Reduction rate

When changing
the sand type,
all sand is
discarded.

Diagram of conserving water resources from three aspects

Preheating tankBlower head

Promoting the Effective Use of Water

Summary Resources
Mold for a sand core

After improvement

1.00
1.00
1.00
0.72
0.70

0.69
0.69

Total
generation
(kt)

0.73

0.67
0.67

0.71

0.80

(1)
Feeding
sand

0.60 Good

Stop the supply of sand whenreaching the required amount.

(2)
Preheating
81
65

69

70
(3)
Creating
a sand
core

50

68

Sand supply stopper

Consolidated subsidiaries in Japan

Reduction rate (non-consolidated)

0(FY) 06

Toyota Industries Report 2019

Wastewater
discharge

17

18

19

FY2019 Results
In fiscal 2019, we identified water risks at each base andconsolidated subsidiary and promoted activities to conserve
water resources. To increase the credibility of our externallydisclosed information, we obtained third party verification of
the water consumption and wastewater discharge data ofthese bases and consolidated subsidiaries.
Our activities earned high scores in CDP surveys in
2018. We will continue our water resource conservation
activities encompassing our supply chain.

Water recycling equipment installed by TMHIT

Financial Section /Corporate Information

Under the Sixth Plan, we are working toward achieving the
fiscal 2021 targets of reducing waste generation volume perunit of production compared with the fiscal 2006 level by
29% on a non-consolidated basis and by 27% for Toyota
Industries and its consolidated subsidiaries in Japan.

Good

Recycling

FY21 target:% reduction (vs FY06 level)

100

Water intake

In order to reduce water consumption, each of our
production bases has been promoting the recycling of water
through various means.
For example, U.S.-based production subsidiaryTD Automotive Compressor Georgia, LLC (TACG) has
introduced a system to recycle water used in various
processes and successfully reduced its annual water
consumption in fiscal 2019 by approximately 57,000 m3, or
36%, from the previous fiscal year.
Additionally, Toyota Material Handling Europe AB(TMHE), a consolidated subsidiary overseeing the materials
handling equipment business in Europe, has set a target
for its production and non-production companies to reduce
annual water consumption for the next three years, startingfrom fiscal 2019, by 10%.
Toward achieving this goal, Toyota Material Handling
Italia Srl. (TMHIT), a subsidiary engaging in sales andservicing of materials handling equipment in Italy, installed
water recycling equipment at one of its locations consuming
the largest amount of water and consequently reduced its
total annual water consumption by 80%.
We duly recognize the importance of water andwill continue to promote water conservation activities
corresponding to the conditions of each Toyota
Industries base.

Promotion of ESG Initiatives

Waste generation volume per unit of production(non-consolidated)

The Higashichita Plant, an engine production base in Aichi
Prefecture, has been promoting the implementation of
measures to reduce resource consumption at the source.
For manufacturing engine components, the plant uses alarge amount of sand to create die casts and resin-bonded
casting sand cores. Sand waste accounts for the largest
portion of the plant’s total waste.
In fiscal 2019, the Engine Division and the Head
Office formed a collaboration team to reduce sand waste
generated in the process to create sand cores.
Conventionally, a sand core is created in three steps:1) feeding sand from the top of a molding machine,2) preheating (intermediate step) and 3) creating a sandcore at the bottom of the machine. When changing thetype of sand, the entire amount of sand already fed tothe intermediate step had been discarded. Focusing
on reducing this wasted sand, the collaboration teamincorporated a circuit to anticipate the number of sand cores
to be created at the timing of sand change and apply a sandsupply stopper so that only the required amount will be fed
to the intermediate step.
This improvement has resulted in a reduction of
approximately 54 tons of annual sand waste.

Introducing Water Recycling Systems

Strategies and Businesses

Waste Generation Volume

Summary (Production Activities)

Reducing Sand Waste from Foundry Process

Water is the basis of all life on the Earth and is an
irreplaceable and valuable resource. Every year, however,
we have been witnessing the increasingly severe impactsof droughts, floods and other natural disasters resulting
from climate change as well as shortages in drinking
water and agricultural water caused by the growth in
the world’s population. Many of the processes of Toyota
Industries use water for washing products and in thecoating process, and we regard the water supply crunch
caused by climate change and population growth as asignificant risk to our business activities.
In our aspirations in 2050, we set a goal of minimizing
the environmental impact on water resources. We haveidentified the status of water risks at each base andconsolidated subsidiary and have been undertaking
activities matched to their respective conditions with afocus on reducing water intake, promoting recycling andpurifying wastewater.

Promoting Reduction of Water Intake andRecycling

Company Introduction

Mass consumption, if continued on the back of the
expanding world population and economic growth, will
eventually deplete natural resources. Toyota Industries
believes it is essential to promote 3R (reduce, reuse andrecycle) design for effective resource utilization and therecycling of waste as resources.
We set a goal of minimizing the use of resourcesin our aspirations in 2050. Accordingly, we have been
making various efforts, including extending the life ofcomponents as well as reducing their size and weight in
the area of product development. In production activities,
implementing measures to reduce resource consumption
at the source, ensuring the maximum resource recycling
within a plant and reducing waste by using leading-edge
technologies are the three pillars of our activities.

Implementing Measures to Reduce
Resource Consumption at the Source

Our Approach (Water Resources)

Only the required
amount of sandis fed into themachine to create
the remaining
number of cores.
TMHIT improvement project members

21

69

Environmental Initiatives

Reducing Environmental Risk and Establishing a Society inHarmony with Nature
We have been making efforts to reduce the use of substances of concern while carefully monitoring thelatest trends in environmental laws and regulations on a global basis. At the same time, we have beenpromoting activities for conservation of biodiversity toward realizing a society in harmony with nature.

Our Approach (Substances of Concern)

FY2019 Results

36% reduction (vs FY06 level)

FY21 target:(vs FY06 level)*2: Committee to encourage collaboration among all sectors in Japan and promote
initiatives related to biodiversity for helping to achieve the Aichi Biodiversity
Targets, which represent the global targets for conservation of biodiversity

Many of the chemical substances needed for our production
activities may cause adverse effects on the environment.
Thus, appropriate
management of chemical
substances is crucial inensuring safe handlingand minimizing potential
harmful effects.
To appropriately
manage chemical
Study group session at aconsolidated subsidiary in China
substances contained

Summary Initiatives for Conserving Biodiversity
FY2019 Results
Under the Sixth Plan, we formulated a plan to connect
green zones by undertaking activities for the conservationof biodiversity throughout the Toyota Industries Group.
Accordingly, we have been collaborating with variousorganizations to carry out initiatives matched to the local
characteristics of regions where our plants are located.
In fiscal 2012, we joined the Chita Peninsula Ecological
Network Council, an initiative of the Aichi prefectural
government to promote the development of ecologicalnetworks within the prefecture. Since then, we have

Students who participated in a survey*1: A project jointly carried out by Aichi Prefecture, NPOs, companies and students withthe aim of forming ecological networks by leveraging corporate green zones of the
Chita Peninsula as well as developing young environmental leaders

Creating an Animal Path to Improve
Natural Habitats of Living Organisms
Recently, we have found that foxes are living in the wooded
area surrounding the Higashiura Plant in Aichi Prefecture.
But because there is not a large enough habitat, many werePlanting Mangroves
Employees of P.T. TD Automotive Compressor Indonesia(TACI), a production subsidiary in Indonesia, have beenplanting mangrove trees since 2013. As of fiscal 2019, a
total of 2,800 mangroves have been planted.
TACI will continue this activity and work to raise
environmental awareness for living in harmony with natureand preventing global warming.

Financial Section /Corporate Information

Strengthening Management of Chemical
Substances at Consolidated Subsidiaries
Outside Japan

Toyota Industries Report 2019

Every year, the Japan Committee
for United Nations Decade on
Biodiversity (UNDB-J)*2, in which
the Ministry of the Environment
serves as the secretariat, hosts
an award program to commend
projects that survey, conserve orrevitalize nature or living organisms
or those designed to conserve
regional culture, with the aim of passing down enrichedecosystems to future generations. The animal pathcreated within the Higashiura Plant garnered a prize in
the Protection category of the committee’s Biodiversity
Action Award Japan 2018.

36% reduction

Under the Sixth Plan, we set a target of reducing emission
volume per unit of production for VOC from the automobile
body painting process by 36% from the fiscal 2006 level andhave been striving to reduce VOC emissions.
In fiscal 2019, we continued our efforts to increase therecovery rate and enhance the maintenance and managementof thinner. Consequently, we were able to cut down emission
volume per unit of production in fiscal 2019 by 36%.

70

Toyota Industries’ Animal Path Winning a Prizein the Biodiversity Action Award Japan 2018

Promotion of ESG Initiatives

Emissions per unit of production(non-consolidated/automobile body)

Deforestation is now proceeding in various parts of theworld, causing the fragmentation of the habitats of livingorganisms. In order for humankind to live in harmony withnature, it is essential to protect nature in each region.
In our aspirations in 2050, we set a goal of generating
a positive influence on biodiversity and have been
conducting various business activities while continuously
paying attention to their impact on the naturalenvironment. We have also formulated the biodiversity
policy and been promoting initiatives accordingly. The
policy clearly stipulates that we seek to reduce the impactof our business activities on biodiversity and work withlocal communities for the conservation of biodiversity.

On the site of the biotope we developed in Aichi Prefecture
in fiscal 2013, we have been conducting surveys of livingorganisms since fiscal 2018 jointly with students under theLife Relay Project*1. In fiscal 2019, we conducted a total offour surveys, one in each season. Based on the results ofpast surveys, we discussed and implemented measureswith the students to encourage more diverse livingorganisms to populate the biotope.

TOPIC

Strategies and Businesses

Summary VOC Emissions (Production Activities)

Our Approach (Conservation of Biodiversity)

Conducting Surveys of Living Organisms
in Our Biotope Jointly with Students

fatally involved in traffic accidents on the neighboring roads.
To provide a safe passage between these wooded areas,
Toyota Industries created an animal path within the plantpremises and has been checking the inhabiting status. In
October 2018, six months after the creation of the path,
we observed foxes using the animal path for the first time.
We will continue to monitor the status while implementing
additional measures as necessary to create a better
environment.
Company Introduction

Currently, air pollution by chemical substances has
become a global issue having equal importance as
global warming. As such, countries around the world are
adopting more stringent environmental regulations eachyear. How Toyota Industries responds to these regulations
will have a significant impact on the business activities weundertake in each country.
Based on this perception, we have been taking aforward-looking approach, anticipating fuel efficiency andemissions regulations to be enforced by each country andregion, and promoting product development accordingly.
In production activities, we have been working to reduce
emissions of volatile organic compounds (VOC), which
are causal substances of photochemical oxidants thatgenerate smog.

in raw materials and products, we have been assisting ourconsolidated subsidiaries and business partners outside
Japan in establishing a system to manage chemical
substances. In fiscal 2019, we provided such support to two
consolidated subsidiaries and several business partners.
We will continue to provide support and undertake
activities to prevent violations of chemical substances
regulations at production bases outside Japan.

been carrying out activities linked to the conservation of
biodiversity in the local natural environment in collaboration
with various stakeholders, including local governments,
companies, NPOs, expert bodies and students. Working
with the council, we established a biotope on companyowned idle land in Aichi Prefecture to create a network ofgreen zones in the surrounding areas in fiscal 2013 and an
animal path in the Higashiura Plant in Aichi Prefecture to
expand the habitat of foxes in fiscal 2019.

Planting mangroves
Notional image of connecting green zones

Fox using the animal path71

Environmental Initiatives

Environmental Management
Toyota Industries proactively discloses its initiatives for the reduction of environmental risk and otherenvironmental information.

Status of Compliance withEnvironmental Laws

https://www.toyota-shokki.co.jp/news/
release/2019/05/15/002408/index.html(in Japanese)

Environmental risk inspection

Norio Suzuki
Administration Department
IZUMI MACHINE MFG.
CO., LTD.
(As of March 31, 2019)

During the inspection, we worked with Toyota
Industries’ staff to identify environmental risks at
the plant boundaries. We routinely conduct checks
on our own, but seeing things through different
eyes helped us to both reduce environmental
risks and encourage the nurturing of internal staff.
We will continue our activities for the reduction ofenvironmental risks.

Green curtains of Haratechs Corporation

Shinjiro Nishikawa(left) and Emiko
Naruse (right)
General Administration
Department, Haratechs
Corporation(As of March 31, 2019)

During the Environmental
Strengthening Period in June,
KTTM and TIEI carried out various
activities to raise employees’
awareness, including giving
saplings to employees, planting
trees, handing out eco-bags andholding an environmental essay
contest. We participated in anenvironmental poster contest,
another such event, and werepleased to win awards. We hopethese activities will continue in the
future.
Let’s save the environment for
future generations!

Jayaprasad G A
Sheet Metal (KTTM)

AshwinEngine QC (TIEI)In fiscal 2019, we grew small melons and asweet variety of mini tomatoes in our company
vegetable garden as we had received requests from
employees for some sweet fruits or vegetables.
Melons and tomatoes survived heavy rains and theparticularly hot summer, and we were able to serve
them to everyone. Their smiles were very rewarding.

Financial Section /Corporate Information

For details, please visit our Website at:n Comments from KTTM and TIEI Award
Winners

Promotion of ESG Initiatives

As part of efforts to formulate its reorganization plan,
the Higashichita Plant voluntarily conducted soil andgroundwater surveys. The results showed that some
substances contained in soil and groundwater were
exceeding their standard values.
Based on the survey results, we will implement required
measures under the guidance of Aichi Prefecture, while
placing our utmost priority on not causing any impact on thesurrounding environment.

Every year, Toyota Industries carries out a three-month
Environment Strengthening Period from June to August withthe aim of increasing environmental awareness of Group
employees and their families through various events.
In fiscal 2019, as part of this initiative, we conducted
a “More Greenery” activity to increase flora and greenery,
including green curtains, at home and in the workplace. The
aim is to encourage employees and their families of Toyota
Industries and its Group companies to take an interest intrees, flowers and other plants and cultivate their awarenessto protect nature in their immediate environment.
We solicited photographs of flowers and greenery
planted under this activity and received about 30
applications. Photographs of excellent works were posted
on our intranet.

Our production subsidiaries outside Japan also carry out
a range of activities during the Environment Strengthening
Period.
In fiscal 2019, L.T.E. Lift Truck Equipment S.p.A. (LTE),
Toyota Industries Engine India Private Limited (TIEI) andKirloskar Toyota Textile Machinery Pvt. Ltd. (KTTM), and P.T.
TD Automotive Compressor Indonesia (TACI), production
subsidiaries in Italy, India and Indonesia, respectively, held
an environmental poster contest, soliciting entries from
employees and their families.
This is an activity already taken hold in Japan as
an event to raise environmental awareness. We haveintroduced the activity at our subsidiaries outside Japan,
where it has been adapted corresponding to each company.
We aim to raise environmental awareness within the
Toyota Industries Group by constantly extending the scopeof our awareness-raising activities.

Strategies and Businesses

Soil and Groundwater Pollution
Countermeasures

In addition to our own production bases, we are promoting
activities to reduce environmental risks at our manufacturingsubsidiaries in Japan.
In fiscal 2019, we conducted genchi genbutsu (goand see for yourself) environmental risk inspections atsuch subsidiaries to check facilities on their premises, theboundaries of their premises and the discharge outlets, aswell as examined how they were managed.
We will continue to monitor the status of their responses
to the identified issues and conduct risk inspections at our
subsidiaries on an ongoing basis.

“More Greenery” Activity (Japan)

 nvironmental Poster Contests
E(Outside Japan)

Company Introduction

In July 2018, there was one incident in which wastewater
discharged from the Higashichita Plant in Aichi Prefecture
exceeded the water quality standard values for phenol andchemical oxygen demand (COD).
In a survey, we found that cooling water used in thefoundry process leaked from the tank and was discharged
through a rainwater gutter. The leakage was caused by
the erroneous operation of the valve, which resulted in an
oversupply of industrial water into the cooling water tankthrough an unused pipe. As countermeasures, we removed
the unused pipe and started showing a warning sign on
an on-site irregularity display when the tank becomes fullso that employees can quickly notice it. We have alreadyreported the incident and our countermeasures to therelevant authorities.
Following the incident, we held a Company-wide
response meeting to report the countermeasures taken at
the Higashichita Plant and discuss what measures shouldbe implemented by other plants. By sharing necessary
information, we worked to prevent a recurrence throughout
Toyota Industries.
Preparing ourselves should an irregularity occur, we willcontinue to undertake and reinforce activities throughout
the Toyota Industries Group, such as emergency drills, tominimize the impact on the external environment.

Conducting Environmental Risk
Inspections at Production Subsidiaries
in Japan

Environment Strengthening Period in the
Toyota Industries GroupAward-winning posters from KTTM, TIEI and LTE

72

Toyota Industries Report 201973

Environmental Initiatives

Case Presentation at the Aichi Forum fora Low-Carbon Societyn GHG Emissions in Supply Chain (FY2019)
Scope 1
(0.5%)
Scope 2
(1.4%)
Scope 3 /Category 1(4.7%)

Scope 3 /Other
(1.2%)

Greenhouse Gas (GHG) Emissions in the
Supply Chain

Evaluation organizations

Emissions other thanfrom Toyota Industries’
business activities

Scope 1

Direct emissions from Toyota Industries through theuse of fossil fuels, etc.

Scope 2

Indirect emissions from the use of purchased energy
resulting from generation of electricity by power
plants, etc.

Scope 3Emissions associated with purchase of raw
materials, end use of Toyota Industries’ products bycustomers and disposal of productsn Scope 3 Emissions by Category (FY2019)
Purchased goods and services
Capital goods
Fuel- and energy-related activities not included in Scope 1 or 2

Waste generated in operations
Business travel

1

Employee commuting
Upstream leased assets

n List of External Environmental Awards

Award program(host organization)

ResultRecipient

Biodiversity Action
Award Japan 2018
(Japan Committee
for United Nations
Decade on Biodiversity(UNDB-J))Award winnerAnimal path at theHigashiura Plant

Fiscal 2019

CDP climate changeA

CDP water security

A

Nikkei’s Environmental
Management Survey

13th place

TOPIC
Selected as an A-List Company of the CDPSurveys
Toyota Industries was selected for the first time for the
A List, the highest rating, in surveys conducted by CDP
on climate change and water security to recognize
companies making outstanding efforts for mitigation ofclimate change and conservation of water resources.
The Toyota Industries Group defined its aspirations in
2050 in March 2016, and based on these aspirations,formulated the Sixth Environmental Action Plan, a fiveyear plan for the period from fiscal 2017 to fiscal 2021.
Our proactive activities under the plan have resulted in
the high rating. We will continue to tackle climate change
and water resource conservation as important tasks
and contribute to the realization of a sustainable society
through our global environmental conservation activities.

Note: See page 71 on the animal path.

TOPIC
Won the “Best Group Engagement” Award by
EcoVadis*
Toyota Material Handling Europe AB (TMHE), a
consolidated subsidiary overseeing the materials
handling equipment business in Europe, received the“Best Group Engagement” award from EcoVadis.
The award evaluates CSR activities of companies inthe environment and other fields and recognizes their
excellent performance and transparency.
* An international organization that evaluates the sustainability of supply chain
companies

Included in Scopes 1 and 2

Downstream transportation and distribution

From left to right:
Ralph Cox, Senior Vice President of Marketing and Sales;
Tom Schalenbourg, Sustainable Development Director;
Carina Strömberg, Sustainability Controller;
and Ernesto Dominguez, Managing Director of TMH France

Included in “Upstream transportation and distribution”

Processing of sold products

Not applicableUse of sold products

Financial Section /Corporate Information

Upstream transportation and distribution

Toyota Industries’ environmental activities to date have beenhighly acclaimed by external organizations. In fiscal 2019,
we received one external award.

Promotion of ESG Initiatives

Emissions from Toyota
Industries’ businessactivities

Toyota Industries fosters environmental communication
with our stakeholders through proactive disclosure ofenvironmental information.
Since fiscal 2015, we have been participating in the
Ministry of the Environment’s project for the establishmentof a framework for disclosure of environmental informationand examining the ideal way to disclose our environmental
information. We will continue to upgrade our method of
disclosure and contents to be disclosed.
n List of External Environmental Evaluations

Scope 3 / Category 11(92.2%)We recognize that measuring the three scopes defined by
the GHG Protocol and turning the results into specific efforts
to reduce CO2 emissions are important in creating a lowcarbon society. Scopes 1 and 2 are GHG emissions fromour business activities, the former being direct emissions
from our use of fossil fuels and the latter being indirectemissions from the use of purchased energy resulting fromgeneration of electricity by power plants and other facilities.

External Environmental Evaluations

External Environmental Awards

Strategies and Businesses

At the Aichi Forum for a Low-Carbon Society hosted by
the Aichi prefectural government, we gave a presentationon our environmental initiatives. We explained our efforts
for achieving zero CO2 emissions during production atplants and during product use by customers, along with forbuilding a society in harmony with nature. These are two of
the goals of our aspirations in 2050, our medium- to longterm environmental vision.
We also participated in atalk session held on stage by
the presenters, exchanged
views on corporate
initiatives for the creation ofa low-carbon society andproactively appealed ourenvironmental initiatives to
Aichi Forum for a Low-Carbon Society
outside parties.

External Evaluations of Toyota
Industries’ Environmental Activities

Company Introduction

Scope 3 emissions are indirect emissions associated witheach product from the purchase of raw materials to end use
by customers and disposal.
In the fiscal 2019 results, combined Scope 1 and 2
emissions accounted for 1.9% of the total emissions, with
Scope 3 emissions reaching 98.1%.
The largest source of emissions, which accounted for
92.2%, was Category 11 (Use of sold products) under
Scope 3, followed by Category 1 (Purchased goods andservices) also under Scope 3, which accounted for 4.7%.
Going forward, we will continue to monitor GHG emissions
within the entire supply chain and accordingly promote CO2
emissions reduction activities.

End-of-life treatment of sold products
Downstream leased assets

Not applicableFranchises

Not applicable

Investments

Not applicable
1

10

100

1,000

10,000100,000

Calculated by using the emissions associated with employee business travel as the baseline set at 1

74

Toyota Industries Report 201975

Environmental Initiatives

Third Party Assurance of Environmental Performance Data
In order to ensure the transparency and accuracy of the information we disclose, the Toyota Industries
Group obtained third party assurance for its energy-derived CO2 emissions (Scopes 1, 2 and 3), waste
generation as well as water consumption and wastewater discharge volume data for fiscal 2019.

Verification by a Third Party

Toyota Industries obtained third party verification of its energyderived CO2 emissions, waste generation volume, water
consumption and wastewater discharge data for fiscal 2019.
On-site verification was performed by the verification
organization at two of our production bases in Aichi
Prefecture, namely, the Obu Plant and Anjo Plant, and thetransparency and accuracy of our environmental data havebeen confirmed through the verification.
Using the procedures specified by the verification
organization, Toyota Industries conducted verification at
the remaining eight production bases of Toyota Industries
as well as 13 consolidated subsidiaries in Japan and 21
consolidated subsidiaries outside Japan.
We will continue to utilize this third party verificationin making continuous improvements in our environmental
activities and disclose data to our stakeholders in a moretransparent manner.

Financial Section /Corporate Information

Financial Section
Consolidated Statements of Financial Position

P78-79Consolidated Statements of Profit or Loss

P80

Consolidated Statements of Comprehensive Income

P81

Consolidated Statements of Changes in Equity

P82-83

Consolidated Statements of Cash FlowsP84-85

Third party verification at the Obu Plant

Note: Toyota Industries has adopted International Financial Reporting Standards (IFRS) beginningfrom the end of fiscal 2017.

Third party verification at the Anjo Plant

Corporate Information

The verification statement of the third party organization is available at:https://www.toyota-shokki.co.jp/csr/environment/process/items/Verification2018_ENG.pdf

Directors, Audit & Supervisory Board Members,
Senior Executive Officers and Executive Officers

P86-87

Major Bases

P88-89Investor Information

P90

n Bases Subject to Verification

Category

Names of Bases and Subsidiaries

Non-consolidated

Kariya Plant, Takahama Plant, Nagakusa Plant, Kyowa Plant, Obu Plant, Hekinan Plant, Higashichita Plant,
Higashiura Plant, Anjo Plant, Morioka Works (Total of 10 bases)

Japan consolidated

Tokaiseiki, Tokyu, Altex, Iwama Loom Works, IZUMI MACHINE MFG., Miduho Industry, Nagao Kogyo, Nishina
Industrial, HANDA Casting, Unica, Haratechs, Aichi, Takeuchi Industrial Equipment Manufacturing (Total of 13 bases)

Consolidated subsidiaries
outside Japan

NVIC, Raymond-Greene, Raymond-Muscatine, TIEM, MACI, TACG, TICA, IHC, Cascade, TMHM, TIK, TACK, YST,
TIEI, KTTM, TACI, TIEV, TDDK, TMHMF, TMHMS, TMHMI (Total of 21 bases)

Note:
For details on the consolidated financial statements, please refer to the financial results and securities report,
which are posted on the following Website: https://www.toyota-industries.com

Total of 44 bases

76

Toyota Industries Report 201977

Consolidated Statements of Financial Position
Toyota Industries Corporation
For the years ended March 31, 2018 and 2019

Millions of yen
2018

Millions of yen

2019

Assets2019¥ 479,253¥ 506,547

Liabilities and Equity¥ 239,140

		 Time deposits with deposit terms of over three months

111,796

223,219

		 Trade payables and other payables

		 Trade receivables and other receivables

764,514845,255

		 Corporate bonds and loans

400,803342,232

6,359

3,988

		 Other financial liabilities

71,68367,030223,714245,182

		 Accrued income taxes

27,097

15,993

		 Income tax receivables

9,359

13,713

		Provisions

7,754

8,807

		 Other current assets

54,21953,282		 Other current liabilities

19,284

16,754

Total current assets

1,493,793

1,623,784

Total current liabilities

1,005,876

957,365

		 Other financial assets
		Inventories

Current liabilities

Non-current liabilities

Non-current assets
938,030

		 Corporate bonds and loans

767,297

955,183		 Goodwill and intangible assets

361,797

361,078

		 Other financial liabilities

70,912

57,813337

5,803

		 Net defined benefit liabilities

86,655

101,347

10,352

10,253

		Provisions

8,460

7,525

2,441,545

2,258,788

		 Deferred tax liabilities

665,342598,083

		 Net defined benefit assets

29,23228,603		 Other non-current liabilities

20,086

21,918

		 Deferred tax assets

27,01730,590Total non-current liabilities

1,618,754

1,741,872

		 Other non-current assets

5,204

4,241

2,624,631

2,699,237

3,764,707

3,637,390¥5,258,500¥5,261,174

		Capital stock

80,46280,462

		Capital surplus

105,343

103,507

		Retained earnings

1,084,139

1,178,773(59,284)(59,297)

1,342,730

1,176,272

2,553,391

2,479,718

80,47882,218

Total equity

2,633,869

2,561,936

Total liabilities and equity¥5,258,500¥5,261,174

		 Trade receivables and other receivables
		 Investments accounted for by the equity method
		 Other financial assets

Total non-current assets
Total assets

Total liabilities
EquityShare of equity attributable to owners of the parent

		Treasury stock		 Other components of shareholders’ equity
Total share of equity attributable to owners of the parent
Non-controlling interests

Toyota Industries Report 2019

Financial Section /Corporate Information

889,220

Promotion of ESG Initiatives

		 Property, plant and equipment

Strategies and Businesses¥ 323,830

		 Cash and cash equivalents

Company Introduction

Liabilities

Current assets

78

2018

79

Consolidated Statements of Profit or Loss

Consolidated Statements of Comprehensive Income

Toyota Industries Corporation
For the years ended March 31, 2018 and 2019

Toyota Industries Corporation
For the years ended March 31, 2018 and 2019

Millions of yen
2019

Net sales¥ 2,003,973¥ 2,214,946

Cost of sales(1,534,207)(1,702,599)

469,765

512,346

		 Items not to be reclassified into profit or loss

(334,347)(376,866)

Other profit

21,915

Other expenses¥173,816¥ 159,778

			 Profit (loss) from FVTOCI financial assets

184,278(159,407)

11,389

			 Remeasurements of defined benefit plans

3,629(9,440)(9,887)(12,184)			Other comprehensive income of affiliates accounted for by the equity method

(4)

(6)

Operating profit

147,445

134,684

		 Total items not to be reclassified into profit or loss

187,903(168,854)

Financial income

70,27976,603

		 Items that can be reclassified into profit or loss

Financial expenses(10,046)(10,226)

			 Foreign currency translation adjustment(1,564)(6,921)

2,149

1,163

			Cash flow hedges

1,419

(621)

209,827

202,225

			Other comprehensive income of affiliates accounted for by the equity method

24

(171)

(36,010)(42,447)

		 Total items that can be reclassified into profit or loss

(120)

(7,713)

173,816

159,778

Total other comprehensive income after income taxes

187,782(176,568)

361,599(16,789)

		 Owners of the parent

355,101(23,702)

		Non-controlling interests

6,497

6,912

Selling, general and administrative expenses

Share of profit (loss) of investments accounted for by the equity method
Profit before income taxes
Income taxes
ProfitProfit attributable to:168,180

152,748

		Non-controlling interests

5,635

7,029

Earnings per share¥

541.67—

Note: Operating profit in fiscal 2018 includes a one-time effect of ¥14.3 billion arising from changes in retirement benefit plans.

Toyota Industries Report 2019¥

Total comprehensive income attributable to:491.97—

Financial Section /Corporate Information

Earnings per share—diluted (yen)Other comprehensive income:Comprehensive income		 Owners of the parent

Earnings per share—basic (yen)ProfitPromotion of ESG Initiatives

2019

Strategies and Businesses

2018

Company Introduction

2018

Gross profit

80

Millions of yen

81Consolidated Statements of Changes in Equity
Toyota Industries Corporation
For the years ended March 31, 2018 and 2019

Millions of yen

Millions of yen

Share of equity attributable to owners of the parent

Capital stock Capital surplus

Retainedearnings¥ 954,503¥(59,272)¥1,209,592

Profit——168,180———

Other comprehensive income

—

—

—

—

183,956

3,525

Total comprehensive income——

168,180—

183,956

Repurchase of treasury stock

—

—

—

(12)

Disposal of treasury stock

—

—

—

Dividends——

Changes in ownership interest of
subsidiaries—

Changes in non-controlling interests
as a result of changes in scope of
consolidation¥—

Balance at April 1, 2017

Cash flow
hedges¥(50,417)¥

Subscription
rights toshares

Total

Total

Noncontrollinginterests

Total equity¥1,159,181¥2,240,293¥76,174¥2,316,467

—

—

—

—

168,180

5,635

173,816

Other comprehensive income(1,980)1,419—

186,920

186,920861

187,782

3,525

Total comprehensive income(1,980)1,419—

186,920355,101

6,497

361,599——

Repurchase of treasury stock

—

—

—

—

(12)

—

(12)

—

—

—

Disposal of treasury stock

—

—

—

—

—

—

—

(41,915)———

Dividends

—

—

—

—

(41,915)(2,390)(44,306)

(74)

—

—

—

—

Changes in ownership interest of
subsidiaries

—

—

—

—

(74)

—

(74)

—

—

—

—

—

—

Changes in non-controlling interests
as a result of changes in scope of
consolidation

—

—

—

—

—

166

166

Reclassified into retained earnings

—

—

3,371

—

153

(3,525)

Reclassified into retained earnings

—

—

—

(3,371)———Other increases (decreases)

—

—

—

—

—

—

Other increases (decreases)

—

—

—

—

—

30

30

Total transactions with owners

—

(74)

(38,544)

(12)

153

(3,525)

Total transactions with owners

—

—

—

(3,371)(42,003)(2,193)(44,196)

80,462

105,343

1,084,139(59,284)

1,393,702—(52,397)

1,426—

1,342,730

2,553,391

80,4782,633,869

—

—

3

—

—

—

Effect of changes in accounting policies

—

—

—

—

3

—

3

80,462

105,343

1,084,143(59,284)

1,393,702—

Restated balance at April 1, 2018(52,397)

1,426—

1,342,730

2,553,394

80,4782,633,873

Profit——152,748———

Profit————152,748

7,029

159,778

Other comprehensive income

—

—

—

—

(159,630)(9,693)

Other comprehensive income(6,505)(621)—(176,451)(176,451)(116)(176,568)

Total comprehensive income——

152,748—(159,630)(9,693)

Total comprehensive income(6,505)(621)—(176,451)(23,702)

6,912(16,789)

Repurchase of treasury stock

—

—

—

(12)

—

—

Repurchase of treasury stock

—

—

—

—

(12)

—

(12)

Disposal of treasury stock

—

0

—

0

—

—

Disposal of treasury stock

—

—

—

—

0

—

0

Dividends——(48,125)———

Dividends

—

—

—

—

(48,125)(2,353)(50,478)

Changes in ownership interest of
subsidiaries—(1,835)

—

—

—

—

Changes in ownership interest of
subsidiaries

—

—

—

—

(1,835)(2,969)(4,805)

Changes in non-controlling interests
as a result of changes in scope of
consolidation

—

—

—

—

—

—

Changes in non-controlling interests
as a result of changes in scope of
consolidation

—

—

—

—

—

100

100

Reclassified into retained earnings——(9,992)

—

298

9,693

Reclassified into retained earnings

—

—

—

9,992

—

—

—

Other increases (decreases)

—

—

—

—

—

—

Other increases (decreases)

—

—

—

—

—

49

49

Total transactions with owners—(1,835)(58,117)

(12)

298

9,693

Total transactions with owners

—

—

—

9,992

(49,973)(5,172)(55,146)¥80,462¥103,507¥1,178,773¥(59,297)¥1,234,370¥(58,903)

¥ 804

¥—

¥1,176,272¥2,479,718¥82,218¥2,561,936

Balance at March 31, 2018
Effect of changes in accounting policies
Restated balance at April 1, 2018

Balance at March 31, 2019

Toyota Industries Report 2019¥—

ProfitBalance at March 31, 2018

Balance at March 31, 2019

Financial Section /Corporate Information¥—

Promotion of ESG Initiatives

6

Strategies and Businesses¥105,417

Other components of shareholders’ equity
Foreigncurrencytranslation
adjustment

Company Introduction¥80,462

Balance at April 1, 201782

Share of equity attributable to owners of the parent

Other components ofshareholders’ equity
Treasury stock Profit (loss) from Remeasurements
FVTOCI financial
of defined
assetsbenefit plans

83Consolidated Statements of Cash Flows
Toyota Industries Corporation
For the years ended March 31, 2018 and 2019

Millions of yen
2018

2019

Cash flows from operating activities:

2,815(67,115)(72,301)

Interest expenses

7,862

8,122

Share of (profit) loss of investments accounted for by the equity method(2,149)(1,163)(Increase) decrease in inventories(23,875)(22,024)(Increase) decrease in trade receivables and other receivables(37,417)(86,533)(452)

42,548Others(22,145)

2,698

Subtotal

229,863

262,340

Interest and dividends income received

67,401

71,997

Interest expenses paid

(7,766)(8,461)

Income taxes paid

(20,929)(55,570)

268,567

270,306(200,115)(225,621)

Proceeds from sales of property, plant and equipment

12,474

14,288

Payments for purchases of investment securities(18,022)(44,123)136

757(172,511)(7,502)

Payments for loans made(648)

(2,053)

Proceeds from collection of loans

950

1,353

Payments for bank deposits(241,296)(447,937)

Proceeds from withdrawals of bank deposits

292,010336,327(248)—(13,052)(20,488)(340,324)(395,000)

Net cash provided by operating activities
Cash flows from investing activities:
Payments from purchase of property, plant and equipment

Proceeds from sales of investment securities
Payments for acquisition of subsidiaries’ stock
resulting in change in scope of consolidation

Payments for transfer of business
OthersNet cash used in investing activities

84

Toyota Industries Report 2019

70

140

Net increase (decrease) in short-term loans (within three months)(32,031)(9,442)

Proceeds from short-term loans payable (over three months)

26,72936,757

Repayments of short-term loans payable (over three months)(26,607)(29,634)

Proceeds from long-term loans payable

108,882

228,884

Repayments of long-term loans payable(162,706)(223,417)

Proceeds from issuance of corporate bonds

294,596

159,106

Repayments of corporate bonds(10,000)(75,949)

(12)

(12)

Cash dividends paid

(41,915)(48,125)

Cash dividends paid to non-controlling interests(2,390)(2,353)

Proceeds from payments by non-controlling interests

422—

Others

(572)

9,330

153,30340,467

Translation adjustments of cash and cash equivalents(1,400)(464)

Net increase (decrease) in cash and cash equivalents

80,145(84,690)

Cash and cash equivalents at beginning of period

243,685

323,830¥ 323,830¥ 239,140

Payments for repurchase of treasury stock

Net cash provided by (used in) financing activities

Cash and cash equivalents at end of period

Financial Section /Corporate Information

2,849

Increase (decrease) in trade payables and other payables(4,812)

Promotion of ESG Initiatives

185,952

Interest and dividends income(1,159)Payments for acquisition of subsidiaries’ stock
not resulting in change in scope of consolidation
Proceeds from sales of subsidiaries’ stock
not resulting in change in scope of consolidation

Strategies and Businesses

162,481

Impairment losses

2019

Company Introduction¥ 202,225

Depreciation and amortization2018

Cash flows from financing activities:¥ 209,827

Profit before income taxes

Millions of yen

85

Directors, Audit & Supervisory Board Members, Senior
Executive Officers and Executive Officers(As of June 30, 2019)

Directors
Chairman

Tetsuro Toyoda

Kazue Sasaki

Taku Yamamoto

Joined Toyota Motor Sales Co., Ltd.
Vice President of Toyota Motor Sales, U.S.A., Inc.
Director of Toyota Industries Corporation
Managing Director
Senior Managing Director
Executive Vice President
President
Chairman (current)
Chairman of the Central Japan Economic Federation(current)

Apr. 1977
Jun. 2003
Jun. 2006
Jun. 2008
Jun. 2010
Jun. 2011
Jun. 2013

Joined Toyota Industries Corporation
Director
Managing Officer
Senior Managing Officer
Director
Senior Managing Director
Executive Vice President (current)

Apr. 1979
Jun. 2007
Jun. 2012
Jun. 2014
Jun. 2016
Jun. 2019

Joined Toyota Industries Corporation
Managing Officer
Senior Managing Officer
Director
Director and Senior Managing Officer
Director and Senior Executive Officer (current)

President

Akira Onishi

Executive Vice
President

Takuo Sasaki

Director

Yojiro Mizuno

Apr. 1981
Jun. 2005
Jun. 2006
Jun. 2008
Jun. 2010
Jun. 2013

Joined Toyota Industries Corporation
Director
Managing Officer
Senior Managing Officer
Senior Managing Director
President (current)

Apr. 1977
Full-Time Audit &Supervisory Board Member Jun. 2005
Shinya Furukawa Jun. 2006
Jun. 2008
Jun. 2010
Jun. 2015
Jun. 2018

Apr. 1980
Jun. 2009
Jun. 2011
Jun. 2011
Apr. 2013
Apr. 2015
Jun. 2015
Jun. 2016
Jun. 2018

Joined Toyota Motor Co., Ltd.
Managing Officer of Toyota Motor Corporation (TMC)
President of Toyota Financial Services Corporation
Advisor of TMC
Managing Officer of TMC
Advisor of Toyota Industries Corporation
Senior Managing Director
Director and Senior Managing Officer
Executive Vice President (current)

Outside Audit & Supervisory Apr. 1978 Joined Chubu Electric Power Co., Inc. (Chubu Electric
Board Member
Power)(Independent)
Jun. 2008 Director, Senior Managing Executive Officer andAkihisa Mizuno
General Manager of Corporate Planning & Strategy
Div. of Chubu Electric PowerJun. 2009 Representative Director and Executive Vice Presidentof Chubu Electric Power
General Manager of Corporate Planning & Strategy
Div. and General Manager of Affiliated Business
Planning & Development Dept.
Jun. 2010 President & Director of Chubu Electric PowerJun. 2015 Chairman of the Board of Directors of Chubu ElectricPower (current)
Jun. 2016 Audit & Supervisory Board Member of Toyota
Industries Corporation (current)

Apr. 1983
Jun. 2010
Jun. 2016
Jun. 2018
Jun. 2019

Joined Toyota Industries Corporation
Managing Officer
Senior Managing Officer
Director and Senior Managing Officer
Director and Senior Executive Officer (current)

Joined Toyota Motor Sales Co., Ltd.
Director of Toyota Industries Corporation
Managing Officer
Senior Managing Officer
Senior Managing Director
Executive Vice President
Audit & Supervisory Board Member (current)

Director

Yuji Ishizaki

Kenichiro
Yamanishi

86

Toyota Industries Report 2019

Joined Toyota Industries Corporation
Managing Officer
Senior Managing Officer
Director and Senior Managing Officer
Director and Senior Executive Officer (current)

Apr. 1975 Joined Mitsubishi Electric Corporation(Mitsubishi Electric)
Apr. 2006 Executive Officer of Mitsubishi Electric
Apr. 2008 Senior Executive Officer of Mitsubishi Electric
Apr. 2010 Representative Executive Officer and President & CEO
of Mitsubishi Electric
Jun. 2010 Director, Representative Executive Officer andPresident & CEO of Mitsubishi Electric
Apr. 2014 Chairman of Mitsubishi Electric
Jun. 2015 Director of Toyota Industries Corporation (current)
Apr. 2018 Director and Executive Corporate Adviser of Mitsubishi
Electric
Jun. 2018 Executive Corporate Adviser of Mitsubishi Electric(current)

Outside Director(Independent)

Shuzo Sumi

Outside Director

Mitsuhisa Kato

Apr. 1970 Joined The Tokio Marine & Fire Insurance Co., Ltd.
(Tokio Marine)
Jun. 2000 Director and Chief Representative in London of Tokio
MarineJun. 2002 Managing Director of Tokio Marine
Oct. 2004 Managing Director of Tokio Marine & Nichido Fire
Insurance Co., Ltd. (Tokio Marine & Nichido)
Jun. 2005 Senior Managing Director of Tokio Marine & Nichido
Jun. 2007 President and Chief Executive Officer of Tokio Marine& Nichido
Jun. 2007 President and Chief Executive Officer of Tokio Marine
Holdings, Inc. (Tokio Marine Holdings)
Jun. 2013 Chairman of the Board of Tokio Marine & Nichido
Jun. 2013 Chairman of the Board of Tokio Marine Holdings
Jun. 2014 Director of Toyota Industries Corporation (current)
Apr. 2016 Counselor of Tokio Marine & Nichido (current)
Jun. 2019 Retired from Chairman of the Board of Tokio Marine
Holdings

Apr. 1975 Joined Toyota Motor Co., Ltd.
Jun. 2004 Managing Officer of Toyota Motor Corporation(TMC)
Jun. 2006 President of Toyota Technocraft Co., Ltd.
Jun. 2006 Advisor of TMC
Jun. 2007 Retired from Advisor of TMC
Jun. 2010 Retired from President of Toyota Technocraft
Jun. 2010 Senior Managing Director of TMC
Jun. 2011 Senior Managing Officer of TMC
Jun. 2012 Executive Vice President of TMC
Jun. 2015 Director of Toyota Industries Corporation (current)
Apr. 2016 Chairman of Toyota Central R&D Labs., Inc.
(current)
Apr. 2017 Director of TMC
Jun. 2017 Senior Advisor of TMC
Jun. 2018 Retired from Senior Advisor of TMC

Jun. 2012
May 2015
Jun. 2015
Jun. 2019
Jun. 2019

Joined Toyota Motor Sales Co., Ltd.
Managing Officer of Toyota Motor Corporation (TMC)
Senior Managing Officer of TMC
Senior Vice President of Toyota Motor North
America, Inc.
President and Representative Director of Toyota
Motor Sales & Marketing Corporation
Advisor of Central Japan International Airport
Company, Limited
President and CEO of Central Japan International
Airport
Audit & Supervisory Board Member of Toyota
Industries Corporation (current)
Advisor of Central Japan International Airport(current)

Taku Yamamoto*
Masahiro Kawaguchi

Keiichi Fukunaga
Koichi Ito

Yojiro Mizuno*

Keizo Hara
Toru Inagawa
Kazunari Masuoka
Hisashi Ichijo
Kenichi Onishi
Yoichiro Yamazaki

Toshihiko Shimizu
Hiroshi Matsumoto
Masanori Shirahama
Nobutomo Yasui
Hiroshi Fukagawa
Keitaro Hara

Yasushi Kawai
Kota Otoshi
Kazunari Kumakura
Shunji Sugimoto
Norio Otake
Shinya Mizutani* Concurrently serving as directors

Executive Officers

Mikihiko Okamoto
Hiroaki Kayukawa
Norio Wakabayashi
Hiroaki Matsuda
Hisanori Miyajima
Hiroya Akatsuka

Financial Section /Corporate Information

Outside Director(Independent)

Apr. 1980
Jun. 2012
Jun. 2016
Jun. 2018
Jun. 2019

Toshifumi Onishi
Yuji Ishizaki*

Outside Audit & Supervisory Apr. 1977
Board Member
Jun. 2005(Independent)
Apr. 2011
Masanao Tomozoe Apr. 2011

Promotion of ESG Initiatives

Senior Executive Officers

Apr. 1976	Joined Toyota Industries Corporation
Full-Time Audit &Supervisory Board Member Jun. 2006 Managing Officer
Toshifumi Ogawa Jun. 2010 Senior Managing Officer
Jun. 2012 Director
Jun. 2013 Senior Managing Director
Jun. 2016	Audit & Supervisory Board Member (current)

Strategies and Businesses

Director

Apr. 1970
Feb. 1991
Jun. 1991
Jun. 1997
Jun. 1999
Jun. 2002
Jun. 2005
Jun. 2013
Jun. 2016

Company Introduction

Executive Vice
President

Audit & Supervisory Board Members

87

Major Bases (Production, Regional Headquarters, etc.)(As of July 1, 2019)■■ Japan■■ Europe

1 Kariya Plant■

President & CEO

President

Kariya-shi, Aichi
Main products: Textile machinery,compressors
Start of operations: 1927

Remo Brunschwiler

Matthias Fischer
21 Toyota Material Handling Europe AB■

Veghel, The Netherlands
Business activities: Provision oflogistics solutions
Establishment: 1949

President

Managing Director

Kazushige Murao

Kristian Björkman
22 Toyota Material Handling Manufacturing■

2 Obu Plant■

5 Takahama Plant■

3 Kyowa Plant■

6 Hekinan Plant■

Obu-shi, Aichi
Main products: Compressor parts
Start of operations: 1944

Obu-shi, Aichi
Main products: Electronic equipment,
automotive press dies, production
facilities, engine parts
Start of operations: 1953

26 TD Deutsche Klimakompressor GmbH■

Bernsdorf, Germany
Business activities: Production ofcompressors
Establishment: 1998

Thomas Nasiou

Giorgio Polonio
23 Toyota Material Handling Manufacturing■

Takahama-shi, Aichi
Main products: Materials handlingequipment, materials handling systems
Start of operations: 1970

9 Anjo Plant■

Anjo-shi, Aichi
Main products: Electronic equipment
Start of operations: 2007

Hekinan-shi, Aichi
Main products: Diesel engines,
gasoline engines
Start of operations: 1982

7 Higashichita Plant■

Uster, Switzerland
Business activities: Production, sales
and after-sales services of quality
measurement instruments for fiber,yarn and fabric
Establishment: 1875

11 Toyota Material Handling North America, Inc.
■

Columbus, Indiana, U.S.A.
Business activities: U.S. headquarters
for materials handling equipment
production and sales
Establishment: 2010

Philippe Mahé
24 Toyota Material Handling Manufacturing■

France SAS
Ancenis, France
Business activities: Production ofmaterials handling equipment
Establishment: 1995

Senior Vice President

Tony Miller
12 Toyota Industrial Equipment Mfg., Inc.
■

26
25 ■
■
24
27
■
■ 23
■
32 ■
35
■
30 ■
31
■

11 ■
12 ■
18
■
13 ■
15 ■
16
■
19
■
17
■

10
■

Columbus, Indiana, U.S.A.
Business activities: Production ofmaterials handling equipment
Establishment: 1988

14
■

34
■

President

Jeff Rufener

28 ■
29
■

13 Toyota Material Handling USA, Inc.
■

33■■■ Asia

20■
CEOManaging Director

Yoshimitsu Hayashi
28 Toyota Industries Engine India Private■

LimitedBangalore, India
Business activities: Production of diesel
enginesEstablishment: 2015

President

Keizo Hara
30 Toyota Industry (Kunshan) Co., Ltd.
■

Kunshan, Jiangsu, China
Business activities: Production ofmaterials handling equipment andautomotive parts, etc.
Establishment: 1994

President

Yasushi Watanabe
32 Yantai Shougang TD Automotive■Compressor Co., Ltd.
Yantai, Shandong, China
Business activities: Production ofcompressors
Establishment: 2012

CEO

Eric Lin
34 Tailift Material Handling Taiwan Co., Ltd.
■Taichung, Taiwan
Business activities: Production, sales
and after-sales services of materials
handling equipment
Establishment: 2014

Mike Field
14 The Raymond Corporation■

Greene, New York, U.S.A.
Business activities: Production, sales
and after-sales services of materials
handling equipment
Establishment: 1922

Mike Romano
15 Toyota Advanced Logistics North America, Inc.
■

Indianapolis, Indiana, U.S.A.
Business activities: U.S. headquarters forlogistics solutions
Establishment: 2017

CEOMike Romano
16 Bastian Solutions, LLC■

Indianapolis, Indiana, U.S.A.
Business activities: Integration oflogistic systems
Establishment: 1952

CEO

Dave Crandall
17 Toyota Industries Commercial Finance, Inc.
■

Dallas, Texas, U.S.A.
Business activities: Sales financing formaterials handling equipment
Establishment: 2014

President

Hisashi Kusaba
18 Michigan Automotive Compressor, Inc.
■

Parma, Michigan, U.S.A.
Business activities: Production ofcompressors
Establishment: 1989

Financial Section /Corporate Information

Columbus, Indiana, U.S.A.
Business activities: Sales of materials
handling equipment
Establishment: 2001

President & CEO

Promotion of ESG Initiatives

Managing Director

Ageo-shi, Saitama
Business activities: Production, sales
and after-sales services of aerial work
platforms
Establishment: 1962

Brett Wood

3
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4■
2
■
8■
1
■
7■
5■
9
■
6
■

21 ■
22
■

Osamu Miura
10 Aichi Corporation■

President & CEO

27 Uster Technologies AG■

Italy S.p.A.
Bologna, Italy
Business activities: Production ofmaterials handling equipment
Establishment: 1942

President■■ The Americas

Handa-shi, Aichi
Main products: Foundry parts,
diesel engines
Start of operations: 2000

CEO

Managing Director

Higashiura-cho, Chita-gun, Aichi
Main products: Compressor parts
Start of operations: 2002

Strategies and Businesses

Sweden AB
Mjölby, Sweden
Business activities: Production ofmaterials handling equipment
Establishment: 1946

8 Higashiura Plant■

Obu-shi, Aichi
Main products: Vehicles
Start of operations: 1967

Company Introduction

Mjölby, Sweden
Business activities: European
headquarters for materials handlingequipment production and sales
Establishment: 1946

25 Vanderlande Industries B.V.
■

4 Nagakusa Plant■

President
President
Managing Director

Toshihiko Shimizu
29 Kirloskar Toyota Textile Machinery Pvt. Ltd.
■

Bangalore, India
Business activities: Production, sales
and after-sales services of textile
machinery
Establishment: 1995

88

Toyota Industries Report 2019

President

Akira Fujii
31 TD Automotive Compressor Kunshan Co., Ltd.
■

Kunshan, Jiangsu, China
Business activities: Production ofcompressors
Establishment: 2005

President

President

Masaya Nakamura

Amy Lin

33 P.T. TD Automotive Compressor Indonesia■

35 Global Power Co. Ltd. (Tailift)■

Bekasi, Indonesia
Business activities: Production ofcompressors
Establishment: 2011

Qingdao, Shandong, China
Business activities: Production, sales
and after-sales services of materials
handling equipment
Establishment: 2000

Hiroshi Kuriyama
20 Toyota Material Handling Mercosur Indústria■e Comércio de Equipamentos Ltda
São Paulo, Brazil
Business activities: Production, sales
and after-sales services of materials
handling equipment
Establishment: 2004

Hiroto Ikeno
19 TD Automotive Compressor Georgia, LLC■

Pendergrass, Georgia, U.S.A.
Business activities: Production ofcompressors
Establishment: 200489

Investor Information(As of March 31, 2019)

Corporate Head Office

Stock Exchange Listings

TOYOTA INDUSTRIES CORPORATION
2-1, Toyoda-cho, Kariya-shi, Aichi, 448-8671, Japan
Telephone: +81-(0)566-22-2511
Facsimile: +81-(0)566-27-5650

Tokyo and Nagoya (Ticker Code: 6201)

Date of Establishment

Independent Accountant

November 18, 1926

Common Stock

PricewaterhouseCoopers Aarata LLC
Otemachi Park Building 1-1-1 Otemachi, Chiyoda-ku, Tokyo,
100-0004, Japan

No par value
Authorized: 1,100,000,000 shares
Issued:325,840,640 shares

Transfer Agent
Special Account Management Institution(including treasury stock)

Share unit:

Number of Shareholders
16,082

Mitsubishi UFJ Trust and Banking Corporation
1-4-5, Marunouchi, Chiyoda-ku, Tokyo, 100-8212, Japan

100 shares

Capital Stock80,462 million yen

Major Shareholders
Number of Shares Held(Thousands)

Name

Percentage of Total Shares in Issue(Except for Treasury Stock) (%)

Toyota Motor Corporation

76,60024.67

DENSO Corporation

29,647

9.55

Towa Real Estate Co., Ltd.

16,291

5.25

Toyota Tsusho Corporation

15,294

4.93

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

12,943

4.17

Japan Trustee Services Bank, Ltd. (Trust Account)

12,229

3.94

Nippon Life Insurance Company

6,580

2.12

Aisin Seiki Co., Ltd.

6,578

2.12

Aioi Nissay Dowa Insurance Co., Ltd.
NORTHERN TRUST CO. (AVFC) RE SILCHESTER INTERNATIONALINVESTORS INTERNATIONAL VALUE EQUITY TRUST
Total

4,903

1.58

4,747

1.53

185,816

59.85

Notes: 1.	Toyota Industries Corporation also holds 15,355 thousand shares of treasury stock but is excluded from the above list.
2. Shares held for the purpose of trust services of respective banks are as follows:		 The Master Trust Bank of Japan, Ltd. (Trust Account)
12,943 (Thousands)
		 Japan Trustee Services Bank, Ltd. (Trust Account)
12,229 (Thousands)
		 NORTHERN TRUST CO. (AVFC) RE SILCHESTER INTERNATIONAL INVESTORS		 INTERNATIONAL VALUE EQUITY TRUST
4,747 (Thousands)

Distribution of Shares

0.8%
4.7%
6.2%
Japanese corporate entities
Japanese financial institutions

19.9%

48.3%

Foreign corporate entities and others
Individuals, etc.
Treasury stock

20.1%

90

Toyota Industries Report 2019Japanese brokerages

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

This report is printed on FSC™-certified paper that contributes to forest conservation
with ink derived from vegetables using a waterless printing process.
Printed in Japan