Business Activities

Outline of Businesses
Automobile
From vehicle assembly to parts production, the Automobile Segment engages in a wide variety of car-related businesses.
Leveraging synergies among its business divisions in development and production, the Automobile Segment accounts
for 56.5% of consolidated net sales and represents the largest business segment of Toyota Industries.

VehicleNet Sales

Main Products• Vitz (Yaris outside Japan)• RAV4• Mark X ZiOWith its strengths as an industry leader in quality, costand delivery, the Vehicle Business produces compact
to midsize automobiles.

(¥ Billion)

1,000
800
600

Engine400

The Engine Business produces both diesel andgasoline engines. We co-develop diesel engineswith Toyota Motor Corporation and possess acomprehensive structure ranging from planning anddevelopment to production.

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

200
0

(FY)

08

09

10

Operating Income (Loss)(¥ Billion)

Car Air-Conditioning Compressor

60

Toyota Industries’ car air-conditioning compressors
are highly acclaimed in terms of their reliability at highoperating speeds and quiet operation in addition tosuch excellent environmental-related performancefeatures as fuel efficiency, compactness and weight
reduction. The Car Air-Conditioning Compressor
Business captures the top global share in unit sales*.

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

40
20
0
-20

(FY)

08

09

10

Percentage of Net Sales* Survey by Toyota Industries Corporation

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

Utilizing power electronics circuitry technology andelectric drive system development capabilities, theCar Electronics Business develops and produces
electronics products for hybrid vehicles and otherelectric vehicles.

56.5%

Materials Handling Equipment
The Materials Handling Equipment Segment develops, produces, sells and provides services for a broad range of
products, from industrial vehicles centered around a full lineup of lift trucks (0.5- to 43-ton load capacities) to warehouseequipment such as systems for transportation, storage and retrieval of goods. Lift trucks, a mainstay product of thissegment, are delivered to customers around the world under the TOYOTA, BT, RAYMOND and CESAB brands throughToyota Material Handling Group.

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

Net Sales

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

800

40

Toyota Industries Report 2010

30

600

20
400

31.3%

10

200

0

0

-10

(FY)



Percentage of Net Sales

08

09

10

(FY)

08

09

10

Business Activities

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

Net Sales

Operating Income(¥ Billion)(¥ Billion)

6120

Percentage of Net Sales
7.9%

100
4

80
60

2

40
20
0

08

(FY)

09

10

0

(FY)

08

09

10

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

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

Net Sales

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

80

5

60

Percentage of Net Sales
1.5%

2.5

40
0

20
0

(FY)

08

09

10

-2.5

(FY)

08

09

10

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

Main Products• Semiconductor package substrates

Net Sales

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

80

8

60

6

2

20

(FY)

2.8%

4

40

0

Percentage of Net Sales

0

08

09

10

-2

(FY)

08

09

10

Toyota Industries Report 2010

Business Activities

VehicleExpanding the Scope of Business Using Technologies
for Realizing Lighter Weights

Business Overview in Fiscal 2010

Contributing to Improved QCD for Toyota Cars

In the automobile industry, the market headed toward amild recovery thanks to government measures such as car
replacement incentives. Under these conditions, despite
lower sales of the Vitz (Yaris outside Japan) and the Mark X
ZiO, higher sales of the RAV4 supported an increase of 8,000
units, or 3%, in unit sales to 291,000 vehicles and an increaseof ¥20.6 billion, or 5%, in net sales to ¥398.7 billion.
Despite an increase in production volume in the second
half of fiscal 2010, we strove to secure profitability by
maintaining a leaner structure.

At its production plants, under the Toyota Production System(TPS), Toyota Industries’ Vehicle Business maintains thehighest level of quality, cost and delivery (QCD) amongautomobile body manufacturers in the Toyota Group by
making continuous improvements. We actively participate
in the development of new Toyota cars, focusing mainly on
the vehicle models produced by Toyota Industries. Thesebusiness activities have continually earned us acclaim,
and in 2009 the Vehicle Business won the Superior Quality
Performance Award in the Auto Body Category and the
Excellent Value Improvement Award.
Looking ahead, while further enhancing QCD, we willdraw on our strengths such as the ability to quickly start
up production and a flexible production structure in terms
of production volume and vehicle models. Through these
initiatives, we will continue contributing to the development
and production of Toyota vehicles.

Vehicle Production(Thousand units)

400
300
200

Contributing to Lightweight Vehicles throughDevelopment of Plastic Glazing

100
0

(FY)

06

07

08

09

10

Cumulative Production of 8 Million Units
In January 2010, Toyota Industries’ cumulative vehicle
production, which is carried out under consignment fromToyota Motor Corporation (TMC), reached 8 million units.
Since commencing production in May 1967, we haveearned high acclaim as an automobile body manufacturer
specializing in compact cars. In September 2007, we started
production of the Mark X ZiO, thereby expanding our role asa manufacturer capable of producing midsize cars.

Responding to demand for further improvements in vehicle
fuel performance, Toyota Industries has developed plastic
glazing, which is highly effective in realizing lighter-weightvehicles. Plastic glazing is approximately 40% lighter thanglass and enables new design-in that cannot be achieved
with the traditional combination of glass and steel sheet.
Toyota Industries has successfully developed a surface
processing technology that raises the durability of plastics
and a molding technology for enabling large-size glazing.
Leveraging these technologies and the inherent features ofplastic glazing, the Vehicle Business plans to commercialize it
as a panoramic roof* in 2011.

Panoramic roof *Vitz (Yaris outside Japan)

Toyota Industries Report 2010

* A large-size window attached to thevehicle roof for more light and a senseof openness

Business Activities

EngineEnhancing Our Development Capabilities and Production
Technologies and Know-How to Further Enhance
Product CompetitivenessBusiness Overview in Fiscal 2010
Toyota Industries recorded a year-on-year increase of 63,000
units, or 14%, in engine production to 502,000 units and anincrease of ¥8.4 billion, or 5%, in net sales to ¥165.0 billion.
These increases were supported by the startup of productionof new AR gasoline engines at the end of 2008.
Engine Production(Thousand units)

600
500
400

Development and Production of Engines for
Hybrid Lift Trucks
Toyota Industries developed and initiated production of
2.5-liter 1DZ-III diesel engines installed in the GENEOHYBRID 3.5-ton diesel-engine hybrid lift truck launched in
December 2009. Compared with conventional diesel-engine
lift trucks, the GENEO-HYBRID reduces fuel consumption
and CO2 emissions by roughly 50%*. Toyota Industries isalso striving to enhance product competitiveness in engines
for industrial vehicles amid rising market needs for improving
environmental performance.
* Measured data from Toyota Industries Corporation’s evaluation patternusing lift trucks with standard specifications

300
200
100
0

(FY)

06

07

08

09

10

Solid Production of KD and AR Engines
Since 2005, Toyota Industries has produced the 2.5-liter and
3.0-liter KD diesel engines for TMC’s Innovative International
Multi-Purpose Vehicle (IMV) series. In September 2009, thescope of models fitted with this engine was extended toinclude the Hiace. Supported in part by favorable sales of IMV
series vehicles for the Thai market, production of KD diesel
engines in fiscal 2010 reached 179,000 units.
Toyota Industries also achieved steady growth in unit salesof 2.5-liter AR gasoline engines on the back of robust salesof the RAV4 for North America. After initially manufacturing
this engine for the RAV4, we also began producing it for the
Camry, and in fiscal 2010, production of AR gasoline engines
reached 134,000 units.
Toyota Industries’ total engine production increased infiscal 2010 mainly due to contributions made by KD and AR
engines.

Applying Development Capabilities andProduction Technologies and Know-How
Toyota Industries is jointly developing clean diesel engineswith TMC, including AD engines that clear Euro 5 emission
standards, as part of integrated operations covering planning,development and production. Diesel engines are earning highenvironmental acclaim for achieving greater fuel efficiency
compared with gasoline engines and cleaner emissions.
Toyota Industries remains committed to utilizing its
capabilities gained through developing diesel engines and its
production technologies and know-how in diesel and gasoline
engines to further enhance product competitiveness.

KD diesel engine

AR gasoline engine

Toyota Industries Report 2010

Business Activities

Car Air-Conditioning Compressor
Leading the Industry with Forward-Looking
Environmental Technologies

Business Overview in Fiscal 2010
Reflecting lower production by automakers, unit sales ofcar air-conditioning compressors remained on par with theprevious fiscal year at 16.71 million units. The impact of
currency exchange rates and other factors led to a decreaseof ¥9.3 billion, or 5%, in net sales to ¥177.0 billion.
Compressor Sales(Million units)

25
20
15
10

launched in May 2009, we successfully integrated into thecompressor an inverter that previously required installation in
a separate location. By doing so, we realized a more compact
and lightweight compressor. Additionally, by expanding
our electric compressor lineup ranging from compact tolarge-size products, Toyota Industries is able to offer a lineof compressors that can be installed in a diverse range ofvehicles. At present, all Toyota hybrid vehicles are equippedwith Toyota Industries’ electric compressors. Our sales record
to TMC, coupled with high acclaim for fuel efficiency andquiet operation, led to adoption of our electric compressor byautomakers in North America and Europe. We will continue tomake efforts to expand sales to carmakers worldwide.

5
0

(FY)

06

07

08

09

10

Cumulative Global Production Reaches
300 Million Units
Since commencing production of car air-conditioning
compressors in 1960, Toyota Industries has consistently
introduced products that anticipate the needs of the times,
including compactness, lighter weights, quieter operation andfuel efficiency. Besides compressors for internal-combustion
vehicles, in recent years Toyota Industries has responded tothe trend toward the electrification of vehicles by developing
and manufacturing electric compressors for hybrid vehicles.
Toyota Industries currently produces compressors globally inthe four regions of Japan, North America, Europe and China.
We attained a noteworthy milestone in August 2009 when
our cumulative global production of compressors reached
300 million units. Toyota Industries’ compressors have been
widely adopted by major Japanese and overseas automakers
and capture the global No. 1* share in terms of sales volume.
* Survey by Toyota Industries Corporation

Expanding Sales of Electric Compressors for
Hybrid Vehicles
Toyota Industries developed the ES18 electric compressor
for the second-generation Prius and commenced the world’s
first mass production of electric compressors. For the ES14electric compressor fitted in the third-generation Prius

10

Toyota Industries Report 2010

ES14 electric compressor

Leading the Industry with Outstanding
Technologies
Given the economic slowdown that has persisted since
fiscal 2009, Toyota Industries moved quickly to streamline its
operations, including staff and facilities at its global production
sites, as part of efforts to strengthen its profit structure. As
initiatives for future growth, Toyota Industries has focusedon responding to emerging countries, where market needs
are rising, as well as on developing appealing products forcompact cars.
Particularly in China, we will carry out sales activities bytargeting higher-end models anticipated to grow in step withthe expansion of the automobile market and by leveraging
our advanced technologies.
Laws and regulations concerning vehicle fuel efficiency
continue to be strengthened in North America, Europe andJapan. As such, we will continue to lead the industry byfurther enhancing our technological capabilities, beginningwith environmental performance, which have earned
extensive praise from automakers worldwide.

Business Activities

Car Electronics
Helping to Realize a Low-Carbon Society via the Development
and Production of Electronic Components and Devices that
Support the Advance of Electric Vehicles

Business Overview in Fiscal 2010
Toyota Industries’ business activities in car electronics havecentered on such auxiliary power source devices as DCDC converters. In fiscal 2010, Toyota Industries developed
a direct-cooling device for power control units (PCUs) for
the third-generation Prius, thereby making our entry into
core components for hybrid vehicle drive systems. Toyota
Industries also worked to expand its business domains by
developing an onboard charger for plug-in hybrid vehicles(PHVs).

DC-DC converter

Newly Developed PCU Direct-Cooling Device
for Third-Generation Prius
PCUs raise the voltage of hybrid vehicle batteries and convert
the direct current into an alternating current to drive themotor. Previously, a major technical issue was controllingthe heat from the PCU’s power semiconductor devices. To
solve this issue, Toyota Industries utilized its independently
developed direct-cooling method to create a device thatsignificantly improves cooling performance, thus contributing
to the realization of compact and lightweight PCUs.
Toyota Industries has also developed a DC-DC converter
and an electric compressor integrated with an inverter forthe third-generation Prius, which have enabled significant
size reductions and lighter weights compared with previous
products.

designed to match the battery capacity, this charger isinstalled in the Prius PHV launched by TMC in December
2009.

New Development of Charging Stands for
PHVs and EVs
Toyota Industries is also involved in the development of acharging infrastructure as part of initiatives for promoting
greater use of PHVs and electric vehicles (EVs).
Adding communication device capabilities to its PHV and
EV charging stands launched in 2009, Toyota Industries hasdeveloped a comprehensive management system enablinguser authentication using an IC card and management ofusage data at charging stations. This system is currently
being used in demonstration testing promoted by government
agencies.
Toyota Industries’ solar charging station, which isequipped with a solar power generation system and electric
storage device and also connected to the commercial power
grid, is operated as part of an environmental model city
project in Toyota City, Aichi Prefecture.

Charging standSolar charging station

Realizing a Low-Carbon Society
PCU direct-cooling device

New Development of Onboard Charger
for PHVs
An onboard charger is an electric power converter thatconverts AC voltage used in households into DC voltage
and recharges the high-voltage batteries of PHVs. Optimally

The implementation of measures to curb global warming
and the shift away from fossil fuels are expected to further
accelerate the trend toward the electrification of vehicles.
We will promote Company-wide technological development
utilizing our strengths obtained from a wide variety ofbusiness operations including industrial vehicles andautomobiles. As a result, we will respond accurately andquickly to the electrification of vehicles, thereby contributing
to the realization of a low-carbon society.
Toyota Industries Report 201011

Business Activities

Materials Handling Equipment
Providing a Wide Range of Products and Services Globallyas Experts in Materials Handling Equipment

Business Overview in Fiscal 2010
In the materials handling equipment industry, severe
conditions persisted amid sluggish markets, with the
exception of some emerging countries. Although Toyota
Industries vigorously carried out sales activities globally, salesof our mainstay lift trucks decreased by 58,000 units, or 34%,
from the previous fiscal year to 111,000 units. This decrease,along with lower sales of aerial work platforms, resulted ina decrease of ¥208.0 billion, or 33%, in net sales to ¥431.6
billion.
Materials Handling Equipment Sales(Thousand units)

250
200
150

Addressing Emerging Countries andEnvironmental Technologies

100
50
0

(FY)

06

07

08

09

10

Market Conditions and Activities in 2009
Adversely affected by the global economic slowdown,
the lift truck market in 2009 struggled, falling to an
approximately 60% level versus the previous year. Under
these circumstances, Toyota Industries worked to lower its
break-even point through streamlining the structure including
restructuring production sites and re-evaluating workforce
balance, with the aim of realizing an optimal development,
production and sales structure.
Along with these streamlining measures, we also focusedon strengthening our business foundation in gearing up
for future growth. Additionally, we took steps to enhance
the appeal of our products by launching a new internalcombustion hybrid lift truck in Japan, introducing a newinternal-combustion lift truck in North America and expanding
our line of electric lift trucks in Europe. Despite facing
harsh market conditions, Toyota Industries also proactively
carried out sales activities. In Japan, we strengthened sales
activities targeting robust industries, while implementing sales
campaigns and a variety of other sales promotion activities

12

in North America. In China, which has become the world’s
largest market for lift trucks, Toyota Industries made efforts tostrengthen its sales structure by further expanding its sales
network, mainly in urban areas.
Turning to the market for aerial work platforms, capital
investments in Japan continued to be cut back in respective
industries, while overseas demand cooled in Europe, which
is a principal market. Within this challenging environment,
the AICHI brand, which commands the top share of theJapanese market, opened its second Chinese production site
in Hangzhou, Zhejiang Province, in the high-growth-potential
China market. The new site will engage in development,
production and sales and provide service for self-propelledaerial work platforms, for which demand is forecast to
expand.

Toyota Industries Report 2010

Despite some variations between geographic regions, since
the start of 2010 the global market for lift trucks has begun
to recover. Of particular note, steady growth is expectedin emerging countries, beginning with China. In view ofthis outlook, Toyota Industries is developing and launchingproducts suited to the needs of emerging country markets.
In response to globally rising needs for the electrification oflift trucks, we will strengthen the product appeal of small andmidsize lift trucks, with an emphasis on electric lift trucks.
For midsize and larger-class models, Toyota Industries will
introduce internal-combustion hybrid models to raise fuelefficiency. From small to large models, we will strive to offer
distinctive lift trucks that utilize our environmental technologies
through electrification.
Looking ahead, Toyota Industries will continue to sincerely
listen to customer needs worldwide and perceive market
changes in striving to expand sales for the TOYOTA, BT,
RAYMOND and CESAB brands.

Business Activities

Japanese Market
No. 1 Market Share in Lift Truck Sales
In 2009, harsh conditions prevailed in the lift truck market in
Japan since 2008 due to the curbing of capital investment
by domestic companies in response to the global economic
slowdown. Reflecting these circumstances, unit sales
by Toyota Material Handling Japan (TMHJ) in fiscal 2010
decreased 29% to 23,000 units.
Within this difficult market environment, TMHJ responded
to growing environmental problems by strengthening its
lineup of electric lift trucks while implementing proactive
sales and service activities that included expanding sales torobust businesses such as the foods and pharmaceuticals
industries. Thanks to these efforts, TMHJ secured a 40.9%
share of the Japanese market, marking the 44th consecutive
1
year that TMHJ has maintained the top position* in theJapanese lift truck industry.
*1: Surveys by Japan Industrial Vehicles Association and Toyota Industries
Corporation, 2009

Launch of Hybrid Lift Trucks
In recent years, there have been growing market needs
for raising environmental performance of lift trucks, suchas reducing CO2 emissions and improving fuel efficiency.
In December 2009, TMHJ launched the GENEO-HYBRID
3.5-ton diesel-powered internal-combustion hybrid lift truck
as a means of reducing the environmental impact in themidsize-and-above classes of lift trucks, for which demand isparticularly strong. The GENEO-HYBRID realizes world-classenvironmental performance by reducing fuel consumption
2and CO2 emissions by approximately 50%* while maintaining

the same operating performance as currently available dieselengine lift trucks.
*2: Measured data from Toyota Industries Corporation’s evaluation patternusing lift trucks with standard specifications

GENEO-HYBRIDStrengthening Electric Lift Truck Lineup
In May 2009, TMHJ carried out a model change for its 1.8and 2.0-ton Minimover electric pallet trucks and added 1.5and 2.5-ton models. Also, in October 2009, TMHJ added
new 5.5- to 8.5-ton electric lift trucks to its range of largesize electric lift trucks, for which there has been strong,long-standing customer demand. By expanding its lineup
of electric lift trucks, TMHJ is responding to diversifying
customer environmental needs.
TMHJ will continue to focus on the environment andsafety in its efforts to provide optimal materials handlingsolutions for customers through an extensive product range
encompassing lift trucks, warehouse trucks, aerial work
platforms, automated storage and retrieval systems andautomatic guided vehicles together with an abundance ofknow-how and an enhanced service structure.

North American Market
Maintained No. 1 Market ShareStrengthening Business Structures

Throughout the industry, the North American material handlingmarket declined in calendar year 2009. In this difficult
situation, Toyota Material Handling North America (TMHNA)
recorded overall unit sales of about 29,000, a decrease of
37%, for TOYOTA- and RAYMOND-brand products in fiscal
2010.
Toyota, as a full line supplier of lift trucks, maintained
3
the top market share for the eighth consecutive year*
and Raymond, as a leading provider of lift trucks used inwarehouse and distribution environments, was also highly
regarded. Together with both brands, TMHNA remained the3market share leader* .

Since the original formation of TMHNA, the companies haveworked closely together to improve business efficiencies
in the areas of manufacturing, quality and procurement for
both TOYOTA and RAYMOND brands. Examples of growing
synergies include improved quality, joint sourcing and supply
base consolidation, and accelerated implementation of TPS.
In March 2010, Raymond transitioned and integrated ReachFork truck manufacturing from Brantford, Ontario, Canada,
to Greene, New York, maximizing efficiency of lift truck
production.
In addition, the Toyota Material Handling Group (TMHG)
management team formalized the TMHNA management
and operations structure in April 2010, newly establishing*3: Survey by Crist Information & Research, LLC, 2009

Toyota Industries Report 201013

Business Activities

TMHNA, Inc. to further strengthen North American regional
coordination.

Launch of New Models, Expansion of
Solutions BusinessIn fiscal 2010, Toyota launched the innovative new line of
8-Series 4-wheel AC electric lift trucks. The new 4-wheel
models deliver longer runtimes and offer quicker accelerationin addition to excellent operability, durability and safety. Toyota
also launched new large internal-combustion pneumatic
lift truck models, ranging from 33,000- to 51,000-poundcapacities.
Raymond introduced the Model 4450 3-wheel sitdown electric counterbalanced truck featuring reduced
turn radius, easier access from either side of the truck andhandling capacities up to 4,000 pounds. A “Pedestrian Safety
in a Material Handling Environment” training module wasdeveloped by Raymond to assist an employer in teachingpedestrians how to act responsibly in environments where lift
trucks are operated. To date, the Raymond iWarehouse fleet
optimization system has been installed in well over 1,000 lift
trucks throughout many large companies.

8-Series

Model 4450

Contributing to Materials Handling Efficiency
A moderate recovery is expected in the North American
market in 2010. TMHNA will look for further synergies in
the coming year to fully leverage both the TOYOTA andRAYMOND brands. Some of the expected synergies include
consolidated sourcing and accelerated implementation of
TPS. TMHNA will continue to offer industry-leading products
and customer service aimed at improving customers’
operations.

European Market
Leaner Profit Structure in Harsh Markets
Over the past several years, Toyota Material Handling Europe(TMHE) has built a strong management structure along withan integrated European network representing the TOYOTA
and BT brands in more than 30 countries, from Western
Europe to Russia.
In Europe, the economic downturn spread and intensified
during 2009 with the European materials handling equipment
market declining by more than half compared with theprevious year. Faced with these new business realities, TMHE
took decisive action to reduce costs and align production andnetwork capacity with lower market demand.
In this very difficult environment, TMHE worked toenhance sales by offering a broad, up-to-date range of
products supported by services and business solutions
packages. As a result, TMHE recorded unit sales of around39,000 units in fiscal 2010, a 37% decrease compared withthe previous fiscal year.

BT Reflex reach truck, BT Levio powered pallet truck and
BT Staxio stacker have strengthened TMHE’s position andreputation as a leader in warehouse equipment design andinnovation. TMHE also reinforced its electric counterbalanced
lineup with the TOYOTA Traigo 48 and TOYOTA Traigo
HT models to complement its TOYOTA Traigo 24 range.
The Traigo family, together with TOYOTA Tonero internalcombustion lift trucks and the BT warehouse equipment
range, allow TMHE to offer customers a modern, highly
diversified and competitive product portfolio.
The CESAB product range was also expanded in 2009
with the launch of the new M300 internal-combustion lift truck
along with several new powered pallet, stacker and reachmodels.

Strengthening Product Lineup
Since 2007, TMHE has renewed its product range,
introducing new models that address more than 70% of
the market. New TMHE warehouse products such as the
Reflex

14

Toyota Industries Report 2010

Traigo 48

Providing Products and Added Value Services

In addition to new products, TMHE has also been developing
its service and business solutions offerings in line withevolving customer needs and new market realities. Toyota
Service Solutions give customers the flexibility to define theright service plan for their business, knowing that they will
receive fast, consistent, high-quality service from a teamof approximately 4,000 service technicians across Europe.
Toyota I_Site moves beyond traditional fleet managementwith a unique combination of information, expertise andsupport that helps businesses manage their materials
handling operations more effectively. Toyota Rental Solutions
and Approved Used Trucks provide today’s cost-conscious
customers with additional options for putting together theright fleet with high-quality Toyota and BT products.

In 2010, the European materials handling equipment market
is expected to show little improvement as Europe faces
continued low levels of economic growth and high levels of
unemployment. Nevertheless, TMHE enters the new fiscal
year with a leaner structure, a strong network presence anda balanced product, service and business solutions portfolio
while continuing to enhance our strengths.

Business Activities

Evolving Services and Solutions

International and Chinese Markets
Engaging in Business in Emerging Countries
Toyota Material Handling International (TMHI) covers themarkets of Asia, the Middle East, Oceania, Latin America andAfrica, while Toyota Material Handling China (TMHCN) covers
the Chinese market.
In 2009, many TMHI and TMHCN markets were facedwith a slowdown related to the global financial crisis that
occurred at the end of 2008. Amid these challenging
conditions, while TMHI and TMHCN aggressively moved
to promote sales, unit sales of industrial vehicles in theinternational and Chinese markets decreased roughly 30% toaround 19,000 units in fiscal 2010.

and introduce new products by drastically reviewing functions
and specifications that suit the Chinese market. TMHCN has
built a network that covers the majority of the Chinese market
and plans to further expand into metropolitan areas with highdemand. On the production side, Toyota Industry (Kunshan)Co., Ltd. has expanded local procurement and devoted
efforts to reducing lead times.
A gradual return to growth in lift truck sales is
expected in the major emerging country markets. TMHI
and TMHCN will expand sales by responding to market
growth and strengthening customer relationships via further
enhancements to sales and service operations.

Reinforcing Structure for Production, Sales
and Service Operations in Growing Markets
The organization in India continues to grow and gain strength
throughout the country, working to improve market coveragefor sales and service operations. As strong market growthis expected to continue, TMHI will work to strengthen its
operations in India to provide a wide range of products
supported by relevant customer services so that TMHI will beable to respond to the growing market.
In Brazil, TMHI has weathered a significant market
downturn and is now in a position to take advantage of a
return to market growth. Brazilian operations will continue tofocus on increased market coverage and customer support.
China has become the world’s largest market for lift
trucks, surpassing the U.S. lift truck market in 2009. As
continued market growth is expected, TMHCN will develop

Toyota Industry (Kunshan) Co., Ltd.

Toyota Industries Report 201015

Business Activities

Logistics
Addressing Customers’ Logistics Needs
through Manufacturing Know-How

Business Overview in Fiscal 2010
The operating environment surrounding the Logistics
Business remained difficult as the economic downturn
from the latter half of 2008 led to sales declines and strong
demands from customers regarding prices. As a result, in
fiscal 2010 net sales of the Logistics Business decreased¥6.3 billion, or 5%, to ¥108.5 billion. In response to these
conditions, Toyota Industries worked to acquire new orders
by enhancing the level of services and strengthened its
business structure by improving earnings.

Planning, Design and Operation ofDistribution Centers
We operate distribution centers for a diverse array of
industries and customers. Despite a severe operating
environment in fiscal 2010, we carried out proactive sales
activities that allowed us to secure new orders for theconsigned operation of distribution centers. Guided by thethinking embodied in TPS, we also vigorously promoted cost
improvement activities at logistics sites as we worked tostrengthen our profit structure. We also actively carried out
consulting services to respond to customer needs.

High Value-Added Services including
Cash Collection and Delivery and Cash
Proceeds Management and Data Storage,
Management, Collection and Delivery
The sluggish economy created difficult conditions forsecuring new orders in high value-added services. In our
cash collection and delivery and cash proceeds management
services, we worked to further raise efficiency by reorganizing
our service center in the Kanto area, which accounts forapproximately half of all sales to the retail industry andwhere high growth is anticipated in the future. In ourbusiness for storing, managing, collecting and delivering
data, we vigorously promoted comprehensive costreduction measures, while cultivating overseas markets andstrengthening our digital archive operations with the aim of
expanding future business domains.

Land Transportation Services
We posted a steep decrease in the volume of automotive
parts transported in fiscal 2010 due to a decline in production
volumes in the automobile industry, which is a principal
customer. As a response, we lowered our break-even pointby vigorously undertaking emergency profit improvement
activities. Highlighting our concern for the environment, we
also made efforts to promote eco-conscious transportation.

Taikoh Transportation Co., Ltd.’s land transportation
services

16

Toyota Industries Report 2010

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

Building New Business Models
Toyota Industries is pursuing various possibilities to address
all the logistics needs of customers. The Logistics Divisionand the Materials Handling Equipment Division are working
together, for instance, to promote the Logistics Solutions
Business by integrating hardware, software and operational
aspects of logistics. We will combine the know-how of eachbusiness division and utilize the resources to build new
business models.

Business Activities

Textile Machinery
A Leading Manufacturer of Textile Machinery that Meets
Diverse Customer Needs

Business Overview in Fiscal 2010
In the textile machinery industry, although demand iscontinuing to recover moderately from the worst of thedownturn in the principal market of China, harsh conditions
still prevailed worldwide. Within this environment, Toyota
Industries posted a decline of ¥8.7 billion, or 29%, in net
sales to ¥20.8 billion, reflecting lower sales of its mainstay
air-jet looms in China.

Air-Jet Loom Sales(Thousand units)

12
10
8

Developing Machinery that Creates High
Value-Added Textile Products

6
4
2
0

(FY)

and develops and sells yarn grading and yarn quality
inspection systems. To the present, Toyota Industries andUster have continued to explore areas where both companies
can mutually utilize each other’s strengths. To build even more
amicable relations and promote development, in November
2009 Toyota Industries acquired a stake in Uster as part ofthat company’s capital increase, becoming Uster’s second
largest shareholder, with a 22.45% stake.
By integrating Uster’s know-how in yarn quality
management in addition to defect detection and information
processing technologies into our own textile machinery, weplan to develop easier-to-use, high value-added products forour customers.

06

07

08

09

10

Sales in Fiscal 2010
Facing weak sales of textile machinery, Toyota Industries
placed increased emphasis on after-sales services.
Specifically, we focused on providing services from acustomer perspective. These included performing machinery
diagnostics to make needed adjustments for optimizing
performance capabilities of textile machinery, making
suggestions for parts replacements and enhancing Internet
sales of spare parts. Through such concerted efforts, we are
striving to further enhance customer confidence. Additionally,
we strengthened our activities for obtaining orders for ourmainstay air-jet looms and maintained the world’s No. 1*
share in unit sales for air-jet looms for the 13th consecutive
year since 1997.

Textile machinery plays an indispensable role in clothing,
one of the basic necessities of “food, clothing and shelter”
that supports people’s daily lives. In the future, per capita
consumption of textile products is forecast to rise in tandemwith population growth and rising standards of living, primarilyin emerging countries. As this trend unfolds, Toyota Industries
will respond to diverse customer needs by developing
machinery that can create even higher value-added textile
products, reducing substances of concern and enhancing theenergy efficiency and operability of our textile machinery.

JAT710 air-jet loom

* Statistics from the International Textile Manufacturers Federation (ITMF),
2009

Capital Alliance with Uster Technologies AG
Uster Technologies AG of Switzerland possesses a
proprietary business model that has built a global yarn quality
measurement standard by drawing on its superb technologies
RX240 series high-speed ring spinning frame

Toyota Industries Report 201017