Contents

Financial Highlights		 1
Message from the Chairman and President		 2-5Business Activities		 6-17

Corporate Social Responsibility

Outline of Businesses		 6-7

Corporate PhilosophyAutomobile		 8-11

30-37

(Toyoda Precepts, Basic Philosophy and CSR Policy) 30-31

Vehicle		 8

Corporate Governance

32-33

Engine		 9

Responsibility to Our Customers

34

Car Air-Conditioning Compressor

10

Responsibility to Our Associates

35

Car Electronics

11

Responsibility to Our Business Partners

36

Materials Handling Equipment

12-15

Responsibility to Our Shareholders and Investors

36-37

Logistics

16

Responsibility to Our Local Communities

37

Textile Machinery17
Major Operations

38-39

Environmental Initiatives

18-29

An Interview with the Chief Environmental Administrator

18-19

Special Feature (Curbing Global Warming)

20-21

Global Environmental Commitment

22

Environmental Management

22-23

Basic Perspective of
the Fourth Environmental Action Plan

24

Board of Directors, Corporate Auditors
and Managing Officers

40

Financial Section

41-77

Financial Section

41

Management’s Discussion and Analysis ofCurbing Global Warming

24

Resource Utilization

25

Consolidated Balance Sheets

48-49

Reduction in Environmental Risk

25

Consolidated Statements of Income

50

Environmental Communication

26

Consolidated Statements of Changes in Net Assets

51

Forest Conservation Activities

26

Consolidated Statements of Cash Flows

52

Notes to Consolidated Financial Statements

53-74

Report of Independent Auditors

75

Investor Information

77

Environmental Data
Targets and Resultsof the Fourth Environmental Action Plan

27

Business Activities and Their Environmental Impact

28

Trends in Environmental Performance

28

Soil and Groundwater Pollution Countermeasures

29

Environmental Accounting/On-Site Verification

29

Financial Condition and Results of Operations

42-47

Cautionary Statement with Respect to Forward-Looking Statements
This report contains projections and other forward-looking statements that involve risks and uncertainties. The use of the words “expect,” “anticipate,” “estimate,” “forecast,”“plan” and similar expressions is intended to identify such forward-looking statements. Projections and forward-looking statements are based on the current expectations andestimates of the Toyota Industries Group regarding its plans, outlook, strategies and results for the future. All such projections and forward-looking statements are based on
management’s assumptions and beliefs derived from the information available at the time of producing this report and are not guarantees of future performance. Toyota Industriesundertakes no obligation to publicly update or revise any forward-looking statements in this report, whether as a result of new information, future events or otherwise. Therefore, itis advised that you should not rely solely upon these projections and forward-looking statements in making your investment decisions. You should also be aware that certain risks
and uncertainties could cause the actual results of Toyota Industries to differ materially from any projections or forward-looking statements discussed in this report. These risks
and uncertainties include, but are not limited to, the following: (1) reliance on a small number of customers, (2) product development capabilities, (3) intellectual property rights,(4) product defects, (5) price competition, (6) reliance on suppliers of raw materials and components, (7) environmental regulations, (8) success or failure of strategic allianceswith other companies, (9) exchange rate fluctuations, (10) share price fluctuations, (11) effects of disasters, power blackouts and other incidents, (12) latent risks associated withinternational activities and (13) retirement benefit liabilities.