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

42
48
50
51
52
53
70
71

Toyota Industries Report 200941

Financial Section

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

Result of Operations

Cost of Sales and Selling, General and
Administrative Expenses

Operating Performance

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

In fiscal 2009, global economic conditions became extremely harsh.

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

The deterioration of the real economy triggered by the financial crisis

sales.

spread beyond the United States and Europe to emerging countries.

Selling, general and administrative expenses decreased ¥23.3

Concurrently, the Japanese economy rapidly declined as exports,

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

production and private-sector capital investment sharply decreased,

decrease in personnel expenses.

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

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

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

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

engaging in aggressive sales promotions and implementing Group-

fluctuations as well as the decline in net sales.

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

Operating Performance Highlights by Business
Segment

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

Following are the operating results by business segment. Net sales

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

for each segment do not include inter-segment transactions.

quickly and thoroughly proceeded with earnings recovery activities

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

In fiscal 2009, the automobile industry saw the market rapidly

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

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

environment, net sales of the Automobile Segment totaled ¥755.9

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

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

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

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

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

RAV4 and Mark X ZiO.

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

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

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

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

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

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

42

Automobile Segment

Toyota Industries Report 2009

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

fiscal 2008, due to significant decreases in production volume by

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

automakers in North America, Europe and Japan.

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

Materials Handling Equipment Segment

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

conditioning compressors and lift trucks.

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

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

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

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

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

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

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

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

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

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

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

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

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

impact of exchange rate fluctuations were also key factors.

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

Logistics Segment
The overall operating environment remained severe in the logistics

Othersindustry as the volume of cargo transport continued to decline in

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

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

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

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

Non-Operating Income and Expenses

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

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

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

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

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

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

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

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

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

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

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

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

production volume as well as from losses of discontinuing production

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

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

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

Others Segment

billion compared with income before income taxes and minority

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

million compared with operating income of ¥6.7 billion in fiscal

Extraordinary losses totaled ¥37.5 billion.

2008.

Income Taxes
Sales by Geographical Segment

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

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

Company.

inter-segment transactions.

Toyota Industries Report 200943

Financial Section

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

Minority Interests in Consolidated Subsidiaries

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

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

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

Net Income (Loss)

After translation adjustments, cash and cash equivalents as of

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

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

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

net income per share of ¥257.50 in fiscal 2008.

Investment in Property, Plant and Equipment
Liquidity and Capital Resources

During fiscal 2009, Toyota Industries made a total investment of

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

and liquidity for its business activities and to maintain strong balance

and materials handling equipment for lease) in order to launch

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

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

augment R&D facilities.

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

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

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

Toyota Industries continues to maintain its solid financial

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

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

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

funds procured from financial institutions, Toyota Industries believesGmbH.

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

The Materials Handling Equipment Segment made an investment

necessary to expand existing businesses and develop new projects,

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

as well as for future investments.

The primary breakdown comprised ¥3.4 billion for the Company,

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

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

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

North America and Europe, respectively.

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

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

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

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

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

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

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

equipment amounted to ¥25.1 billion in the Automobile Segment,

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

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

Toyota Industries Report 2009

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

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

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

Industries will make a concerted effort to quickly and thoroughly

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

March 31, 2009.

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

Principal Customers

measures to reduce fixed costs, including labor costs, depreciation

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

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

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

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

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

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

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

voting rights.

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

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

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

the Automobile Segment and ¥480.0 billion in the Materials Handling

Toyota Industries proactively develops new products by utilizing its

Equipment Segment.

leading-edge technologies, as it strives to anticipate increasingly

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

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

Dividend Policy

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

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

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

Industries believes that it can continue to develop appealing new

to strengthen Toyota Industries’ corporate constitution, promote

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

proactive business development and raise its corporate value.

market needs and develop and introduce appealing new products in

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

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

results.

total revenues and anticipates that future growth will be contingent

and other factors. Toyota Industries’ Ordinary General Meeting of

Such a situation could result from risks that include no assurance

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

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

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

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

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

its shareholders.

In undertaking its business activities, Toyota Industries has acquired

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

numerous intellectual property rights, including those acquired

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

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

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

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

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

introduce a competing product into the market. Moreover, Toyota

dividends is determined by the Board of Directors while payment

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

Toyota Industries could become a party subject to litigation involving

General Meeting of Shareholders.

the intellectual property rights of a third party.

Toyota Industries Report 200945

Financial Section

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

Product Defects

activities with other companies through alliances and joint ventures.

Guided by the basic philosophy of “offering products and services

However, a wildly fluctuating market trend or a disagreement between

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

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

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

intended benefits of its alliances.

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

Exchange Rate Fluctuations

large cost burdens and have a significant negative impact on the

Toyota Industries’ businesses encompass the production and sales

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

decrease in sales, deterioration of profitability and decrease in share

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

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

Price Competition

increase in the value of currencies in countries or regions where

Toyota Industries faces extremely harsh competition in each of the

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

local production, procurement and distribution costs. Such an increase

and Materials Handling Equipment businesses, which are the core

in costs could reduce Toyota Industries’ price competitiveness.

of Toyota Industries’ earnings foundation. Toyota Industries believes

Additionally, because export sales of several businesses are

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

technology, quality and cost. Amid an environment characterized

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

results due to a change in market prices.

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

Share Price Fluctuations

impact on Toyota Industries’ financial condition and business results.

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

Reliance on Suppliers of Raw Materials andComponents

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

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

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

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

Toyota Industries had unrealized gains. However, unrealized gains on

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

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

Toyota Industries carries out regular checks and inspections of its

or an unforeseen accident involving a supplier. Such shortages could

production facilities to minimize the effect of production breakdown.

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

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

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

Toyota Industries’ financial condition and business results.

including malfunctions of production facilities, fires at production

for raw materials and components. However, Toyota Industries

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

Environmental Regulations

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

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

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

its production processes, as well as strictly adheres to applicable

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

environmental laws and regulations. However, various environmental

Such prolonged delays and stoppages could have an adverse impact

regulations could also be revised and strengthened in the future.

on Toyota Industries’ financial condition and business results.

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

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

46

Alliances with Other Companies

services in various countries. Such unforeseen factors as social

Aiming to expand its businesses, Toyota Industries engages in joint

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

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

Toyota Industries’ financial condition and business results.

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

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

Toyota Industries’ Relationship to Toyota
Motor Corporation

between actual results and assumptions as well as changes in the

Due to historical reasons, Toyota Industries maintains close

assumptions could have a significant impact on recognized expenses

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

capital and business dealings.

Historical BackgroundSignificant Accounting Policies andEstimates

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

Toyota Industries’ financial statements are prepared in conformity

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

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

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

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

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

Capital Relationshipaccounting policies, the following categories require a considerable

In light of this historical background, Toyota Industries and TMC

degree of judgment and estimation and are highly complex.

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

Allowance for Doubtful Accounts

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

To prepare for the risk of receivables becoming uncollectible, Toyota

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

Industries estimates its allowance for doubtful accounts by utilizing

affiliate accounted for by the equity method.

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

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

Toyota Industries assembles certain cars and produces automobile

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

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

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

and timing—that could change significantly. Based on currently

accounted for 35.7% of our consolidated net sales.

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

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

contribute to strengthening the competitiveness of TMC and otherresults.

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

Allowance for Retirement Benefits

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

profits from the Toyota Group, thereby contributing to raising Toyota

and liabilities after employee retirement, as well as benefits for

Industries’ corporate value.

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

Toyota Industries Report 200947

Financial Section

Consolidated Balance Sheets

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

ASSETS

2009

2008

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

Trade notes and accounts receivable

158,798

244,035

Short-term investments

58,83840,621–

124,633

Merchandise and finished goods (Notes 5 and 9)

44,237–Work in process (Note 5)

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

27,423–

Deferred tax assets (Note 19)

16,60018,860

Other current assets

64,63254,391

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

595,612

Buildings and structures (Notes 6 and 9)

182,214

188,776

Machinery, equipment and vehicles (Note 6)

252,402266,347

Tools, furniture and fixtures (Note 6)

25,59828,145Land (Note 9)

110,078

107,727

Construction in progress

18,97031,849Total property, plant and equipment

589,264

622,847

Goodwill

107,072

137,163

Software

11,736

12,522

Total intangible assets

118,809

149,685

907,524

1,513,779

5,954

8,056

Inventories (Notes 5 and 9)

Total current assets
Fixed assets:
Property, plant and equipment

Intangible assets:

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

11,578

8,578

Other investments and other assets

126,534

67,202

(199)

(177)

1,051,391

1,597,439

1,759,464

2,369,972

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

48

Toyota Industries Report 2009

¥2,327,432 ¥2,965,585

Millions of yen

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

2009

2008

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

538,041

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

973,547
1,511,588

80,46280,462

106,180
412,294(50,672)

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

602,783

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

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

Toyota Industries Report 200949

Financial Section

Consolidated Statements of Income

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

2009

2008

Net sales¥1,584,252 ¥2,000,536

Cost of sales (Note 14)

1,389,002

1,678,493

Gross profit

195,249

322,043

Sales commissions

10,287

11,650

Salaries and allowances

75,42682,362Retirement benefit expenses

2,012

2,063

Depreciation

8,734

10,058

Research and development expenses

23,61022,365

Other

81,80096,688(6,621)

96,853

Interest income

12,677

14,737

Dividends income

37,781

34,850

498

3,043

–

987

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

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

–

2,749

8,356

8,547

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

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

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

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

14,343

126,488–

5,866

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

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

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

132,355

8,248

47,057

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

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

Income taxes — current (Note 19)

Net income (loss)¥

Yen

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

50

Toyota Industries Report 2009

¥ (105.16) ¥ 257.50–

257.43

2,987.16

4,483.32

40.00

60.00

Financial Section

Consolidated Statements of Changes in Net Assets

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

2009

Millions of yen

2008

2009

Shareholders’ equity
Capital stock

Balance at the end of previous period

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

80,462

Balance at the end of current period

80,46280,462

Capital surplus
Balance at the end of previous period

106,184

105,055

Changes of items during the period

(115)

140

Total changes of items during the period

(115)

140

24

140

41,47752,912

Balance at the end of current period
Foreign currency translation adjustment

(4)

1,128

Balance at the end of previous period

(4)

1,128

Changes of items during the period

106,180

106,184

Retained earnings
466,780

402,431

Effect of changes in accounting policies applied toforeign subsidiaries

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

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

41,477794,171

1,210,704

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

Net changes of items other than shareholders’ equity

Total changes of items during the period

Balance at the end of previous period

140

Changes of items during the period

Disposal of treasury stock
Balance at the end of current period

2008

Deferred gains or losses on hedges

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

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

Increase in consolidated subsidiaries–(1,316)

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

Decrease in consolidated subsidiaries

–

(77)

382,466

794,171

Increase in change of scope of equity method

–

2,771

Net income (loss)(32,767)

80,460

Balance at the end of previous period

695

202

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

64,349Changes of items during the period

412,294

466,780

Net changes of items other than shareholders’ equity

528

493

Total changes of items during the period

528

493

1,224

695

56,34558,878(2,532)

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

Changes of items during the period

Balance at the end of current period
Subscription rights to shares

Balance at the end of current period
Minority interests

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

Balance at the end of previous period

Disposal of treasury stock

12

5,337

Changes of items during the period

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

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

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

Total shareholders’ equity

Balance at the end of current period

Balance at the end of previous period

602,783

540,696

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

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

Changes of items during the period
Dividends from surplus

Total net assets–

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

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

Decrease in consolidated subsidiaries

–

(77)

Increase in consolidated subsidiaries–(1,316)

Increase in change of scope of equity method

–

2,771

Decrease in consolidated subsidiaries

–

(77)

(32,767)

80,460

Increase in change of scope of equity method

–

2,771

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

80,460

Disposal of treasury stock

8

6,466

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

62,087

Disposal of treasury stock

8

6,466

548,264

602,783

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

Net income (loss)

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

Dividends from surplus

Total changes of items during the period

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

Changes of items during the period

Balance at the end of current period
752,553

1,157,793

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

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

392,489752,553¥ 977,670 ¥1,453,996

Changes of items during the period

Balance at the end of current period

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

Toyota Industries Report 200951

Financial Section

Consolidated Statements of Cash Flows

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

2009

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

52

Toyota Industries Report 20092008

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

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

Financial Section

Notes to Consolidated Financial Statements

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

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

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

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

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

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

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

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

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

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

Toyota Industries Report 200953

Financial Section

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

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

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

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

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

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

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

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

54

Toyota Industries Report 2009

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

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

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

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

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

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

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

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

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

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

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

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

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

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

15,17915,179¥230,943

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

Realized gains

Realized losses¥12,368¥498¥3

Toyota Industries Report 200955

Financial Section

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

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

7,081
340
7,421
¥226,683

6,318
340
6,658
¥1,479,290

(763)
–
(763)
¥1,252,606

Acquisition
cost

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

Realized gains¥6,567¥5,866

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

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

Merchandise and finished goods
Raw materials
Work in process
Supplies
Total

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

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

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

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

56

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

2008¥159,862
468,784
75,233¥703,879

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

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

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

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

Long-term debt

Lease obligations

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

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

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

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

2009¥7,5203,434

2008¥7,4678,329

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

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

2009
¥51,520
532
486
–
396
¥52,935

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

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

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

Toyota Industries Report 200957

Financial Section

Notes to Consolidated Financial Statements

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

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

2008¥5,276

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

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

–
¥134

2008
¥402
324

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

Export discount bills

2009
¥158

2008
¥394

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

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

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

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

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

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

58

Toyota Industries Report 2009

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

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

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

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

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

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

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

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

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

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

Fair value

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

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

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

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

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

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

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

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

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

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

Toyota Industries Report 200959

Financial Section

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

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

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

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

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

Amortization period of unrecognized actuarial gains
or losses

2.00%
3.00%
6–11 years

20 years

2008

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

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

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

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

5.59%

4.61%

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

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

4.99%

4.47%

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

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

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

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

Selling, general and administrative expenses

2009
¥575

2008
¥493

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

2009
¥46

60

Toyota Industries Report 20092008–

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

2008

2007

Company name

The Company

The Company

The Company

Position and number ofgrantees

Directors: 17
Managing officers and employees: 159

Directors: 16
Managing officers and employees: 159

Directors: 17
Managing officers and employees: 152

Class and number of shares*

1,360,000 shares of common stock

830,000 shares of common stock

802,000 shares of common stock

Date of issue

August 1, 2008

August 1, 2007

August 1, 2006

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

Same as left

Same as left

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

Same as left

Same as left

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

Same as left–

Periods that grantees must
provide service in return forstock options

From August 1, 2008 to July 31, 2010

From August 1, 2007 to July 31, 2009

From August 1, 2006 to July 31, 2008

Periods that stock subscription
rights are to be exercised

Four years after determination of rights

Same as left

Same as left

Company name

The Company

The Company

The Company

Position and number ofgrantees

Directors: 30
Managing officers and employees: 134

Directors: 30
Managing officers and employees: 135

Directors: 30
Managing officers and employees: 128

Class and number of shares*

791,000 shares of common stock

775,000 shares of common stock

750,000 shares of common stock

Date of issue

August 1, 2005

August 2, 2004

August 1, 2003

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

Same as left

Same as left

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

Same as left

Same as left

Periods that grantees must
provide service in return forstock options

From August 1, 2005 to June 30, 2007

From August 2, 2004 to June 30, 2006

From August 1, 2003 to June 30, 2005

Periods that stock subscription
rights are to be exercised

Four years after determination of rights

Same as left

Same as left

Condition of settlement ofrights

2006

Condition of settlement ofrights2005

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

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

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

2008
830,000–
2,000–
828,000

2007
802,000––
802,000
–

2006
–
–
–
–
–

2005
–
–
–
–
–

2004
–
–
–
–
–

Toyota Industries Report 200961

Financial Section

Notes to Consolidated Financial Statements
Exercisable stock options(shares)

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

2009
–
–
–
–
–

2008
–
–
–
–
–

2007
–
802,000–
59,000743,000

2009¥3,410–421

2008¥5,866–682

2007¥4,642–759

2006
130,500–––
130,500

2005
13,600–1,600–
12,000

2004
2,000
–
2,000
–
–

2005
¥2,652
3,188
–

2004
¥2,074
3,350
–

2009
24.63%
4 years¥60/share
1.000%

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

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

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

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

62

Toyota Industries Report 2009

2009

2008

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

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

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

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

2009
39.9%

2008
39.9%

–
–
–

(5.4)
(0.9)
33.6%

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

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

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

2009

2008

¥

¥

245
137
107

276
125
150

¥11,568
6,930
4,638

¥17,656
8,965
8,691

¥12,172
7,081
5,090

¥14,946
7,306
7,639

¥

¥

107
49
57
¥ 9,893

132
49
82¥16,564

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

Due within one year
Due after one year
Total

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

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

Toyota Industries Report 200963

Financial Section

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

Lease payments
Pro forma depreciation expenses

2009¥4,918¥4,9182008¥5,997¥5,997

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

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

2009

2008

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

2009
Due within one year
Due after one year
Total

2008

¥2,072
2,961¥5,033¥3,073
5,832¥8,906

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

Total lease payments to be received
Depreciation expenses

2009¥2,157
1,695

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

Due within one year
Due after one year
Total

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

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

Due within one year
Due after one year
Total

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

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

Toyota Industries Report 2009

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

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

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

2009¥1,224The Company

2008
¥695

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

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

Total dividends

Dividends per share

Class of shares

Millions of yen

Yen

Common stock¥9,970¥32

Common stock

9,347

30

Record date

Effective date

March 31,2008
September 30,
2008

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

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

Millions of yen

Common stock¥3,115

Source ofdividends

Retainedearnings

Dividends per share
Yen

¥10

Record date

Effective date

March 31,2009

June 22,2009

Record date

Effective date

March 31,2007
September 30,
2007

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

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

Total dividends

Dividends per share

Class of shares

Millions of yen

Yen

Common stock¥8,738¥28

Common stock

8,751

28

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

Ordinary General Meeting of Shareholders
held on June 20, 2008

Class of shares

Millions of yen

Common stock¥9,970Source ofdividends

Retainedearnings

Dividends per share
Yen

¥32

Record date

Effective date

March 31,2008

June 23,2008

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

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

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

Toyota Industries Report 200965

Financial Section

Notes to Consolidated Financial Statements

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

2009

2008

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

639,656
3,931
643,587

783,173
3,415
786,589

114,825
6,927
121,753

117,591
7,942
125,533

29,55646
29,603

66,264
7
66,271

Subtotal
Elimination of inter-segment transactions
Total

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

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

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

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

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

66

Toyota Industries Report 2009¥

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

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

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

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

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

¥
¥

–
–
–
–
–
–
–

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

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

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

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

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

2009

2008

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

193,884
1,875
195,760

265,571
2,185
267,756

272,108
6,087
278,195

327,7857,821
335,607

Subtotal
Elimination of inter-segment transactions
Total

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

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

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

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

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

¥

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

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

Toyota Industries Report 200967

Financial Section

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

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

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

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

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

2009

2008

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

12.2%
19.1
8.2
39.5%

13.3%
18.7
9.5
41.5%

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

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

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

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

Toyota Motor Corporation

2009¥563,665

2008¥710,976

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

68

Toyota Industries Report 2009

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

Toyota Motor Corporation

2009¥405,1202008¥521,644

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

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

Toyota Motor Corporation

2009¥22,6922008¥30,282

Payable to a related party:
Millions of yen

Toyota Motor Corporation

2009¥22,678

2008¥49,571

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

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

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

2009

2008

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

80,460312,467¥ 257.50

0–85¥ 257.43¥

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

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

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

2009

2008

¥ 977,670¥1,453,996

1,224
45,715
930,730
311,577¥2,987.16

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

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

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

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

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

Toyota Industries Report 200969

Financial Section

Report of Independent Auditors

Report of Independent Auditors

To the Board of Directors of Toyota Industries Corporation

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

July 10, 200970

Toyota Industries Report 2009

Financial Section

Investor Information(As of March 31, 2009)

Corporate Head Office

Number of Shareholders

TOYOTA INDUSTRIES CORPORATION

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

Independent Accountants

Facsimile:

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

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

Date of Establishment
November 18, 1926

Common Stock

Transfer Agent
Special Account Management Institution

No par value

Mitsubishi UFJ Trust and Banking Corporation

Authorized: 1,100,000,000 shares

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

Issued:325,840,640 shares

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

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

Toyota Motor Corporation

Number of
Shares Held (Thousands)

Percentage ofTotal Shares in Issue (%)

76,60023.51

DENSO Corporation

29,647

9.10

Third Avenue Fund-Custodial Trust Company

18,576

5.70

Towa Real Estate Co., Ltd.

15,697

4.82

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

9,068

2.78

Toyota Tsusho Corporation

8,289

2.54

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

8,177

2.51

Japan Trustee Services Bank, Ltd. (Trust Account)

6,975

2.14

Nippon Life Insurance Company

6,735

2.07

Aisin Seiki Co., Ltd.
Total

6,578

2.02

186,347

57.19

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

Distribution of Shares(As of March 31, 2009)

0.3%
4.4%
8.3%

19.3%

As of
March 31,
2009

46.0%

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

21.7%

Toyota Industries Report 200971