FY2013 Financial Results

May 8, 2013

Ⅰ．Financial Summary

1/23

Financial result FY2013

Performance(Billion yen)

FY2012FY2013

Net sales

1,543.3

1,615.2

71.9

4.7%

Operatingincome

70.0

77.0

7.0

10.0%

Ordinary
income

80.8

86.8

6.0

7.4%

Net
income

58.5

53.1

(5.4)

(9.3)%

Change2/23

Earnings forecast FY2014

Performance(Billion yen)

FY2013

FY2014

Net sales

1,615.2

1,900.0

284.8

17.6%

Operatingincome

77.0

95.0

18.0

23.2%

Ordinary
income

86.8

107.0

20.2

23.2%

Net
income

53.1

65.0

11.9

22.4%

Change3/23

Ⅱ．Our Business Initiatives towardmedium- to long-term growth

4/23

Promoted to establish the foundation for our medium and long term growth
Strengthened the business structure（¥ billion）●Strengthened the structure by continuing profit improvement activities
after the Lehman Shock150●Surmounted a host of difficulties such as the influences of theearthquake and the flooding in Thailand

100

Operating income

Established the foundation and structure ofeach business field

Lehman Shock（億円）

500●Toyota Material handling Group

Comprehensive Continue profitstructural
downsizing improvement activities

Strengthened and expanded the value chain
・Reorganizeed our sales network by integrating distribution channels
and making the distributors into subsidiaries
・Bolstered sales and after-sales-service operation●Car air-conditioning Compressor

Established optimum supply structures

Start theVision 2020-50（¥ billion）

（億円）

Sales

Solidify
defenses shift
to offensive

Strengthen thedevelopment
for our future
growth2,000

・Established supply structures resilient to exchange rate fluctuations
・Enhanceed the appeal of fuel-efficient products centered on 3E fields●Vehicle/Engine

Further improved the level of quality, cost anddelivery (QCD)

1,500・Contributed to improving the competitive edge of TOYOTA carsby the top level of QCD
・Assumed a greater role in development and production of diesel engines●Promoted the alliances for our future growth・Acquired Cascade Corporation and Uster Technologies

1,0002005 2006 2007 2008 2009 2010 2011 2012 2013 2014
(FY)

5/23

Invest proactively for our medium and long term growth
The amount of capital investment and M&A(¥billion)

250

2,000

Sales(¥billion)

・Cascade Corporation

200
1,584
1,479

150

1,900

1,543

1,615

・Uster Technologies
・Sales network of Materials
Handling Equipment

・Wanbishi Archives 1,377

M&A・Uster Technologies
・Sales network of Materials
Handling Equipment

100

Capital Expenditures
50
Materials Handling Equipment
Car Air-Conditioning Compressor

02008

2009

2010

2011

2012

2013

2014

2015

2016 (FY)(Plan)(Plan)(Plan)

6/23

Vision 2020
Medium-Term
Management Plan

Focused initiatives during fiscal 2014 (1/2)
Spur innovation in all functions and accelerate initiatives to propel
Toyota Industries’ growth and qualitative progress to realize the Vision 2020

◆ Further raise manufacturing capabilities and development centeredon 3E (Energy, Environmental protection and Ecology thinking) fields• Accelerate the development of new products in environmental, energy saving
and electrification fields• Shift focus away from hardware origination toward software origination
and raise development capabilities• Promote the development of new production engineering and manufacturingmethod that will serve as a source of competitiveness
7/23

Focused initiatives during fiscal 2014 (2/2)
Spur innovation in all functions and accelerate initiatives to propel
Toyota Industries’ growth and qualitative progress to realize the Vision 2020

◆ Further fortify the Toyota Industries Group’s comprehensive
capabilities and prevail against global competition• Refine planning and sales capabilities and build an optimal value chain
for each market• Establish global procurement, production and supply structures resilient toexchange rate fluctuations• Strengthen horizontal alignment among business divisions and subsidiaries
and create synergies◆ Maintain and improve a muscular structure resilient to changes
in the business environment

8/23

【 Solution / Materials Handling Equipment 】

Solution

Key components

Mobility

New productNew productNew product

Energy, Environmental protection

3Es ( and Ecological thinking

New productNew product) <Technological innovation in environment/energy areas>

Value Chain<Expansion of value chain>

World Market<Business development in world markets>

9/23

Solution / Materials Handling Equipment・サービストレーナー育成
Our initiatives toward the expansion of valuechain

プログラムを各国へ展開

Development

Develop globalmodels

Promote productdevelopment centeredon 3E fields

Enhance theappeal of products

Production

Highly efficient production
based on TPS

Build global
production andsupply structures

Increase local
procurement ratio

SalesServiceDevelop optimum sales
network in each region

Strengthen service capability・Integrate distribution channels
Make distributors intosubsidiaries
・Strengthen sales network＜Developed countries＞

Sales activities appealing
cost advantage of the whole
life cycle of the products
Consultation for logistics
improvement and solution
sales
Strengthen leasing
and rental business・Improve levels of customer
service by utilizing strengthened
sales and services network＜Emerging countries＞
・Deploy training programsfor service trainers
in each country
・Enhance service training
・Establish sales/service
companies

10/23

Solution / Materials Handling Equipment

Diversified each region’s
market needs

Develop global models

Intensified price competition

・ Standardize basic platform and create modules matched to the needs of each market
・ Improve price competitiveness by standardizing components and optimizing production places and suppliers of components
・ Improve fuel and electricity efficiency by product development centered on 3E fields

The first model
8 FBN(1.5t – 3.0t electric lift truck)

Started sales for the Chinese market in May 2011
Started sales for the ALOMA* markets in January 2012

*Asia, Latin America, Oceania、Middle East, Africa

The second model
8 series (3.5t～8.0 internal-combustion lift truck) Started sales in North America in Apr. 2013
Equipped with 1KD engine which isdeveloped by our engine division

・Meet tougher emission regulations
・Improve fuel efficiency by 30%

Introduce more models as a series of global models
11/23

Solution / Materials Handling Equipment

Product development centered on 3Es

Growing importance of electric lift trucks
More strict regulations on environment
Growing needs for improvement of work environment

GENEO-R

High-pick Lift

started sales in May 2012For Japan and ALOMA＜Features＞
・Prolonged operating time・Reduce customers' costsof maintenance(0.9t～1.8t)

Developed controllers
in cooperation with
our Car electronics
division

Motors are supplied
from our Vietnam
plant

started sales in Dec. 2012For Japan and ALOMA＜Features＞
・Prolonged operating time・Improve workability andoperability(0.7t～1.5t)

Further enhance the appeal of electric models by introducing electric type of main models

12/23

Solution / Materials Handling Equipment

Enhance the appeal of products

Acquired the ownership of Cascade Corporation,
the world’s largest manufacturer of materials handling attachments for the lift truck

Wholly owned subsidiary from the end of Mar. 2013

1) Corporate Profile
・Company name・Capital・Net sales
・Operating Income： Cascade Corporation (Headquarters ： Portland, Oregon, USA)： 5.6M US$ (as of Jan. 31, 2013)： 538.4M US$ (fiscal year ended Jan. 2013)： 67.5M US$ (fiscal year ended Jan. 2013)2) Purchase price： 65 US$ / share3) Transaction valued： 759M US$13/23

Solution / Materials Handling Equipment

Enhance the appeal of products

Advantage of Toyota Industries

Advantage of Cascade

・Extensive product lineup ofmaterials handling equipment・Response to diversifyingcustomer needs by the materials
handling attachments

・A wealth of know-how such as
logistics improvement

・Highly customizable products basedon its excellent design and production
systemExpanding our business
Share the advantagesof each company

Respond to the further
broader customer needs

14/23

Solution / Materials Handling Equipment

Build Global Production and Supply Structures

・Produce lift trucks at the bases near each market
・Produce key components at an optimally located country and supply to each plant
BTCascade(Became a subsidiaryat the end of Mar. 2013 )TIESA

Raymond
RMD

Cesab

TICO
Raymond

TIK
TIEM

BTMF

Vietnam

TIEV (since Apr. 2012 ）Commenced supply of motors forelectric lift trucks to the 4 plants ofeach region

BrazilEstablish a new plant
Meet growing Brazilian market

TMHM(Commence productionin Oct. 2013)

Model：Internal-combustion lift trucks
Commencement of production ：Oct. 2013
Volume：5 thousand units (FY2015)

15/23

Solution / Materials Handling Equipment

Strengthen leasing and rental business【Problems】Although needs for leasing and rental are high, we do not fully meet such needs by our ownLeasing and rental business accounts large proportion
The image of leasing and rental ratioof materials handling equipment businessof our lift truck sales
We are engaged in approximately only 40% ofLeasing and rental
the whole leasing and rental business(TICO)Developed countries Depend heavily on other companies
Emerging countries

Not undertaken

Leasing and rental(Through othercompanies)【Responses】 Strengthen our response
・ Approach to customers’ needs by appealing our capability of sales,
after-sales-service and financing
・ Expand the leasing and rental business in all areas by utilizing the collective capabilities ofTICO Group (fund-raising capability, global sales and service network)
・ Respond customers’ needs throughout the product lifecycle
Started to strengthen the response of TICO by establishing new operations
・Mexico : Establish a sales finance company (May 2013)
・France : Establish a branch of our sales finance company (May 2013)

16/23

Solution / Materials Handling Equipment

Strengthen after-sales-services

One of the measures against local manufacturers in ASEAN and other emerging countries
Implement training programs at Global Training Center for service trainers from around the world*

Training for service trainers of ALOMA markets*Asia, Latin America, Oceania、Middle East, Africa

・Further improve service quality which is crucial for production goods
・Appeal cost advantage of the whole life cycle of the products through sales activities

Distinguish from manufacturers in emerging countries

17/23

Further expansion of sales

Solution / Materials Handling Equipment(thousand units)
1,200(thousand units)
300

1,000

Others800200Europe
100

600
400

NorthAmerica200

Japan02008

Development
Develop global models

20092010

2011

ProductionHighly efficient production
based on TPS

Promote product development
centered on 3E fields

Build global production andsupply structures

Enhance the appeal ofproducts

Increase local procurement
ratio

2012

2013

2014

Lift truck market

Sales units of materials
handling equipment

Market

2016

0（FY）

Sales

Service

Develop optimum sales
network in each region

Strengthen service Capability＜Developed countries＞
・Improve levels of customer
service by utilizing strengthened
sales and services network

Sales activities appealing costadvantage of the whole life
cycle of the products
Consultation for logistics
improvement and solutionsales
Strengthen leasing and rental
business＜Emerging countries＞
・Deploy training programsfor service trainers in each country
・Enhance service training
・Establish sales/service
companies

18/23

【 Key components / Compressor 】
Solution

Key components

Mobility

New productNew productNew product

Energy, Environmental protection

3Es ( and Ecological thinking

New productNew product) <Technological innovation in environment/energy areas>

Value Chain<Expansion of value chain>

World Market<Business development in world markets>

19/23

Key components / Compressor

Product development centered on 3E fields

Response more strict fuel efficiency regulations【Outline of more strict regulations on fuel efficiency 】

・Strengthen fuel efficiency regulations every year for the next ten years in North America・Strengthen regulations of fuel consumption and CO2 emission gradually in Europe, Japan and China
Market trend and our response
Variable-displacement type
Fixed-displacement type【Market】

・Globally needs for fuel-efficient is growing. In North America, customers’ needs shifts tovariable-displacement type・In emerging countries, balances between performance and price is important【Our response】

・Develop next-generation variable-displacement type with further greater fuel efficiency
・Optimum balance between performance and price of products for emerging
countries

Variabledisplacement type【Market】

Electric type・World auto makers release HVs and EVs
・Rapid increase in the number of inquiries to our electric type
【Our response】

・Expand sales to auto makers worldwide by offering more compact andfuel-efficient products
・Ensure production capabilities and cost reduction

Electric type

20/23

Key components / Compressor

Product development centered on 3E fields

Improvement of Variabledisplacement type

SEU series

SES series
・Toyota・GM・Audi・Daimler

・Improve fuel efficiency by 10%

・Lighter weight by 10%

Improvement of electric typeES series

ESA series
・Ford・VW

・Improve electricity efficiency by 10%
・Lighter weight by 10%
・Improve installation capabilities （Cooperate with Car electronics division in the development of inverters）
Expand sales to auto makers in Japan, the US and Europe
21/23Key components / Compressor

Optimize production and supply structure

EuropeRespond to growing demand for compressors
due to the increase of automobile production
・ Increase production capabilities of the production base in Germany
・ Increase local procurement ratio

ChinaNorthAmerica
Respond to growing demand for variabledisplacement type due to more strict fuelefficiency regulations

・Increase production capabilities to meet the increasingorders from Japanese and US auto makers

Increase local procurement ratio to aim tominimize the impact of currency fluctuations
・Establishment of production base for variable-displacement
type compressor parts (Commence production in Sep. 2013)

Respond to the expansion of auto market as wellas the auto makers’ shift to focus more on quality
・Response the increasing orders from the auto makers other than TOYOTA・Increase local procurement ratio

ASEAN
Respond to the increasing demand in the new production base in Indonesia
・Supply cost-competitive fixed-displacement type for ASEAN and India (since June 2011）
・Commence supply for auto makers other than TOYOTA
・Increase local procurement ratio

Consolidated production bases
Licensed manufactures

22/23

Further expansion of sales

Key components / Compressor（Million units）【Enhance the appeal of products】

30

・Further strengthen the competitiveness offuel-efficient products

Toyota Industries Sales units
Others・Develop the products with good balance
between performance and price to respondto the needs of emerging countries

Europe【Strengthen the supply structure】

20・Increase production capabilities torespond to the growing global demand
・Improve price competitivenessby increasing local procurement ratio

NorthAmerica

10Japan02008 2009 2010 2011 2012 2013 2014

2016

(FY)

Accelerate expansion of sales
to auto makers worldwide

23/23

Cautionary Statement with Respect
to Forward-Looking Statements
This presentation contains projections of business results as well as statements regarding
business plans, forecasts, strategies, and other forward-looking statements that are not tobe taken as historical fact. Projections and forward-looking statements are based on thecurrent expectations and estimates of Toyota Industries and its Group companies. Allsuchprojections

andforward-lookingstatements

arebasedon

management’s

assumptions and beliefs derived from the information available to it at the time ofproducing this report and are not guarantees of future performance. You should also beaware that certain risks and uncertainties could cause the actual results of Toyota
Industries and its Group companies to differ materially from any projections or forwardlooking statements appearing in this report. These risks and uncertainties include, but are
not limited to, the following: 1) economic trends, 2) various competitive pressures,3) changes in relevant laws and regulations, and 4) fluctuations in exchange rates.