FY2018 Financial Results

May 8, 2018

I. Financial Summary
1. Points of financial results
2. Financial results for FY2018
3. Financial forecast for FY2019

1/27

Points of Financial Results for FY2018
1. Net sales and profits increased from previous fiscal year.
2. Dividends for FY2018 is ¥150, ¥25 increase fromprevious fiscal year. Plan of dividends for FY2019 issame as FY2018.
3. Increase in net sales and decrease in profits areexpected for the FY2019 full year forecast.
However, increases in profits are expected if
one time effect are not counted.
2/27

Performance <FY2018>
FY2017(Billion yen)

FY2018Change1,675.1

2,003.9

328.8

19.6%

Operating profit

127.3

147.4

20.1

15.8%

Profit before income taxes

181.9

209.8

27.9

15.3%

Profit attributable toowners of the parent

131.3

168.1

36.8

28.0%

Earnings per share¥420.78¥541.67¥120.89‐

Dividends per share[Year end]

¥125
[¥65]

¥150
[¥80]

¥25
[¥15]

‐
[‐]

Payout ratio

29.7%

27.7%*‐‐Net sales* 30.4% if the effect of the US Tax Cuts and Jobs Act is not counted.

¥/US$¥108¥111¥3‐¥/Euro

¥119

¥130

¥11‐

‐ Sales increase of pre‐existing business as well as acquisition of two logistics solutions companies
namely Bastian and Vanderlande mainly contributed to increase of net sales and profits.
‐ Increase of dividends from FY2017 ¥125 to FY2018 ¥150.
3/27

Segment Information <FY2018>
Net sales [Operating profit](Billion yen)

FY2017FY2018ChangeVehicle
Engine

73.1
90.0

72.1
98.7

(1.0)
8.7

(1.4%)
9.6%

Car air‐conditioning
compressor

334.7

351.4

16.7

5.0%

Electronics parts,
foundry and others

64.7

72.7

8.0

12.4%

Automobile

562.6[24.9]

595.0[29.6]

32.4
[4.7]

5.7%

Materials handlingequipment

988.1[89.4]

1,283.0[104.9]294.9[15.5]

29.8%

Textile machinery

66.2
[6.8]

65.5
[6.1]

(0.7)
[(0.7)](1.2%)

Others

58.0
[6.0]

60.3
[6.6]

2.3
[0.6]

4.0%

Total

1,675.1[127.3]2,003.9[147.4]328.8[20.1]

19.6%

Unit sales(Thousand units)
FY2017FY2018ChangeRAV4Vitz (Yaris)

206
101

205
93(1)
(8)

Vehicle

307

298

(9)

DieselGasoline

294
207

330
244

36
37Engine

50157473

32,55033,420870

Materials handlingequipment

253

263

10

Air‐jet loom

6.9

6.3(0.6)

Car air‐conditioning
compressorVehicle:Net sales decreased due mainly to decrease of unit sales of Vitz (Yaris).
Engine:Net sales increased by unit sales increase of AR gasoline engines and GD diesel engines.
Car air-conditioning compressor :Net sales increased as unit sales in Japan, North America and China increased.
Materials handling equipment:Net sales increased by unit sales increase in each region as well as acquisition ofBastian and Vanderlande.

4/27Changes in Operating Profit
Year-on-year comparison (FY2017 and FY2018)
Operating profit: ¥20.1 billion increase (from ¥127.3 billion to ¥147.4 billion)

14.3

Change inretirement
benefit plan

Positive impactof exchange
rate fluctuations

15.9(Billion yen)

(8.0)

9.4
13.7

(9.8)

Increase in
raw material
Increase incosts
labor costs(4.5)(10.9)

Increase indepreciation

147.4

Increase in
expenses andothers

Cost reduction

127.3
Increase insales volume

+39.0

+14.3

(33.2)FY2018FY2017- Increase of unit sales and cost reduction of each business, as well aschange in retirement benefit plan contributed to increase of profit.
- Increases of raw material and labor costs negatively affected on profit.
5/27

Performance <FY2018>(Billion yen)

FY2017FY2018ChangeInvestments intangible assets

77.3

115.4

38.1

49.2%

Depreciation

73.2

77.7

4.5

6.1%

‐ Investments in tangible assets in the Automobile segment increased,
mainly for the vehicle and engine businesses.

6/27

Performance <FY2018>(Billion yen)

As of March
31, 2017

As of March
31, 2018

Total assets

4,558.2*

5,258.5*

700.3

15.4%Total equity

2,316.4

2,633.8

317.4

13.7%

¥7,215.37¥8,223.82¥1,008.45

‐

49.1%

48.6%

‐

‐

20725447‐

Equity attributable toowners of the parent
per share
Percentage of equity
attributable to owners of theparent
Consolidated subsidiaries

Change* Includes sales finance assets, ¥584.7 billion as of March 31, 2017, and ¥635.9 billion as of March 31, 2018.

*Total assets increased due mainly to acquisition of Bastian andVanderlande as well as an increase in market value of investment
securities.
7/27

Performance <FY2019 Forecast>(Billion yen)

FY2018FY2019Change2,003.9

2,150.0

146.1

7.3%

Operating profit

147.4

135.0

(12.4)(8.4%)

Profit before income taxes

209.8

189.0

(20.8)(9.9%)

Profit attributable toowners of the present

168.1

146.0

(22.1)(13.2%)

Earnings per share¥541.67¥470.23(¥71.44)‐

Dividends per share[Year‐end]

¥150
[¥80]

¥150[¥75]‐[(¥5)]‐[‐]

Payout ratio

27.7%

31.9%

‐

‐

¥/US$

¥111

¥105(¥6)‐¥/Euro

¥130

¥130

‐

‐

Net sales

8/27

Segment Information <FY2019 Forecast>
Net sales [Operating profit](Billion yen)

Unit sales(Thousand units)

FY2018FY2019ChangeVehicle
Engine

72.1
98.7

69.0
110.0(3.1)
11.3(4.3%)
11.4%

Car air‐conditioning
compressor

351.4

361.0

9.6

2.7%

Electronics parts,
foundry and others

72.7

75.0

2.3

3.1%

Automobile

595.0[29.6]

615.0

20.0

Materials handlingequipment

1,283.0[104.9]1,410.0

127.0

Textile machinery

65.5
[6.1]

65.0

Others

60.3
[6.6]

Total

2,003.9[147.4]FY2018FY2019ChangeRAV4
Vitz (Yaris)

205
93

237
4832(45)

Vehicle298

285(13)

3.4%

DieselGasoline

330
244

403
22273(22)9.9%Engine574

625

51(0.5)(0.8%)

Car air‐
conditioningcompressor

33,42035,4001,980

60.0(0.3)(0.6%)

Materials
handling
equipment

263

294

31

2,150.0[135.0]146.1[(12.4)]

7.3%

Air‐jet loom

6.3

6.2

(0.1)

9/27

Changes in Operating Profit
Year-on-year comparison (FY2018 full year and FY2019 full year forecast)
Operating profit: ¥12.4 billion decrease (from ¥147.4 billion to ¥135.0 billion)

14.0(8.0)(Billion yen)

(7.8)
26.0
147.4

Increase inlabor cost
Cost reduction(14.3)(7.0)
Negative(5.3)
impact ofexchange rate Increase influctuations raw material
costs
Increase indepreciation

Change in Increase inretirement sales volume
benefit plan

(10.0)
135.0
Increase in
expensesand others

1.9 billion of substantial profit increase(14.3) (9.7 billion of profit improvement if impact of exchange rate fluctuations is not counted)
FY2018FY201910/27

Performance <FY2019 Forecast>(Billion yen)

FY2018FY2019ChangeInvestments in tangible
assets

115.4

110.0

(5.4)

(4.7%)

Depreciation

77.7

83.05.3

6.8%

11/27

II Our Business Initiatives towardMedium Term GrowthMaterials Handling Equipment
Car air‐conditioning Compressor
1. Overview of Materials Handling Equipment Segment
2. Lift truck sales situation
3. Value chain of lift truck business
4. Logistics solutions business5. Our initiatives toward mid‐term business growth

12/27

Materials Handling Equipment
1. Overview of Materials Handling Equipment Segment‐ Expansion of value chain centered on lift trucks‐ Enhancement of logistics solutions businessBusiness structure is almost
completed

Lift truck business

Logistics solutions business

Value chain
Products

Internal combustion
lift truck‐ Offers such products as
automated storage andretrieval systems (AS/RS)
and automatic guided
vehicles (AGV) mainly forJapanese market

Warehouseequipment

Unit type AS/RS‐ Strong presence in Europe
and operates business globally,
capable for large scale projects AS/RS for baggage

Sales financeElectric
lift truck

Fuel cell
lift truck

Components

Telematics

Increase of
direct managed
sales channels

Attachments

Bastianhandling system‐ Operates business centeredon North American market,
highly capable for system
integration

After salesservicesDistribution center
development

13/27

Materials Handling Equipment
1. Overview of Materials Handling Equipment Segment

Net sales constitution image
Major activities
Logistics solutions
Approx. 20%

Components such asattachments,
sales finance,
Aichi Corporationand others

New vehicle sales
including lift trucks,
and others
FY 2018

JPY 1,283 billion

After sales services,
spare parts, others

Value chain of lift
truck businessApprox. 40%

Approx. 40%‐ Sales expansion of lift
trucks anticipating
market needs‐ Maximize outcome ofvalue chain expansion‐ Expansion andstrengthen of logistics
solutions businessglobally14/27

Materials Handling Equipment
2. Lift truck sales situation(ThousandUnits)

1,500

Sales expansion of lift truck
anticipating market needs(ThousandUnits)
300

Global lift truck market*

Our unit sales
Others1,000200
Europe500

10000NorthAmericaJapan

08 09 10 11 12 13 14 15 16 17 18*: Estimate by TICO

20 (CY)

Market is stable and continuous
growth is expected
Stable world economy supports
continuous and gradual market growth
Global logistics volume is expected toincrease due to growth of existing
demand as well as new demand led
mainly by expansion of e-commercemarket09 10 11 12 13 14 15 16 17 18 19

21 (FY)

Promote sales expansion leveraging ourproduct appeals in addition to well‐structured
sales and after sales services network
Development of high-quality broadlines of products that meetcustomers’ various needs
Sales expansion leveraging wellstructured network
Consulting sales responding tocustomer’s logistics issues
15/27

Materials Handling Equipment
3. Value chain of lift truck businessMaximize outcome ofvalue chain expansion
After sales services• Increase of direct managed sales channels=> Increase of net sales by offering after sales services including
life cycle maintenance and spare parts• Utilize telematics to offer logistics improvement proposal=> Efficient vehicle operations, accident decrease, energy saving drive, automation

Sales finance・Expand in‐house operation globally => Response to needs for lease and rental

Component• Enhancement of product appeals of internally developed engines,
motors and controllers=> Further differentiate performance of both IC and electric vehicles

Emerging markets• Utilize Tailift=> Strengthen capability for such middle to low price markets as China
16/27

Materials Handling Equipment
4. Logistics solutions business

Expansion and strengthening oflogistics solutions business globally• Vanderlande as a core, and together with Bastian and TICO,
promote collaboration by region and by function, leveraging
each of their strengths
Vanderlande’s present business is strong
1) Distribution center
Logistics system order from a
Dutch fresh food supplier
Realize highly efficient and automatedwarehouse logistics by integrating
AS/RS shuttle system and case pickingsystem2) Baggage handling system (BHS)Vanderlande and Rotterdam The
Hague Airport have agreed tointroduce the world first BHS basedon autonomous vehicle technology
An innovative system with such advantages as
efficient bag transfer and flexible layout, etc.

17/27

Materials Handling Equipment
Customers Center Osaka opens in June 2018
‐ Strengthen response to customers in west of Japan‐ Provide proposals against logistics issues by combining vehicles and solutions
Osaka

Takahama(Aichi‐ken)

Tokyo

18/27

Materials Handling Equipment
5. Our initiatives toward mid‐term business growth
Aim for further growth of overall Materials Handling Equipment business;
lift truck business adding to logistics solutions business[Logistics solutions business]

Profit growth image‐ By cooperating with Vanderlande andBastian, promote various activities in theareas of R&D, procurement and sales.

(JPY Billion)[Lift truck business]‐ Sales expansion by differentiation ofproducts and services‐ Meticulous after sales services

104.9‐ Expansion of sales finance business‐ In‐house production of key components

38.2‐ Thorough cost reduction‐ Increase of local procurement ratio‐ Enhance capability of middle to low price20122018

202X (FY)

products marketand others
19/27

II Our Business Initiatives towardMedium Term GrowthMaterials Handling Equipment
Car air‐conditioning
conditioning Compressor
1. Compressor market and our initiatives
2. Strength of each type of compressor
3. Initiatives of R&D
4. Initiatives of production
5. Utilization of present technologies to further differentiate TICO,
application of such technologies for new areas

20/27

Car air‐conditioning Compressor
1. Compressor market and our Initiatives
Compressor market and our unit sales(Thousandunits)
80,000Electricdriven
typeEnginedriven
type

60,000Compressor market

Electricdriven
type40,000

Enginedriven
type

20,000

Our unit sales
02015

2016

20172018

2019

202Ｘ (FY)*Estimate by TICO

Compressor market continuously grows
Growth of automarket

Higher car air conditioner
fitted ratio‐ Engine driven type remains dominant‐ Electric driven type is expected to grow inthe mid to long term

Further utilize our accumulated unique
resources and knowhow into both types ofcompressors
Human resources

Technologies andknowhow

In‐house developed facilityFunds

The industry overall
concentrates on electric typeEngine driven type
Remains dominant for the time
being and put our effort on thisFurther increase superiority ofour products and aim to reach
50% of the market share
Electric driven type
Steadily respond to expected demand
increase in the future
Leveraging our higher market sharecompared to engine driven type, obtain
increase of the market
21/27

Car air‐conditioning Compressor
2. Strength of each type of compressor
Engine driven vehicles
Fixed
displace‐
ment

Variable
displace‐
ment
Driven with power of engine

Features

Strengthsand sales
expansion
approaches

Electric driven vehicles(HV・PHV・EV・FCV)Electric

Driven with power ofbuilt‐in motor

Standard type with
fixed cooling
performance

Realize lower energy
consumption byautomatically controlling
cooling performance

Comfortably air‐conditioned any time,even when engine of HV or
PHV stops during start‐stop
function works

Supply reliable and costcompetitive products
mainly to emerging
markets

Leverage superior fuelefficient performance andglobally stable mass
production capability to
expand sales mainly todeveloped country markets

Obtain growing electric
driven vehicles market
utilizing our strengths ofmechanical and electrical
technologies andknowhow as well as stableand quality production
capability
22/27

Car air‐conditioning Compressor
3. Initiatives of R&D‐ Meet strict conformance requirements required for automotive components
at high level‐ Develop highly reliable products by closely working together withworld car manufacturers
Engine / electric driven types
Achieve suitable performance as an
automotive component throughexperiment under such environment
recreating the actual vehicle‐fitted
conditions‐ Collect data of vehicles used in markets
through tests using actual vehicles, realizingsuperior fuel efficient performance andreliability‐ Conduct vehicle conformance utilizing ourknowhow of simulation as well as test andevaluation

Electric driven type
Establish platform of electric driven typeat the early days of electrification ofautomobiles‐ Respond precisely to the needs of world car
manufacturers by closely working with themleveraging our global No. 1 market share‐ Capable to satisfy various specifications
including different voltages‐ Avoid radio disturbances to home appliances
during charging

23/27

Car air‐conditioning Compressor
4. Initiatives of production
In accordance with more stringent fuel efficiency regulations, differentiate bothengine and electric driven types by our production capability that realizes stablesupply of more and more complicated products
Engine / electric driven types
Differentiate with machining
technologies which is indispensable
also for electric driven type‐ High speed and highly precise machining
using in‐house developed facility and cutting
tools=> Compared with conventional method,
doubled machining precision whilehalved machining time
Cutting tools
processing machine

Engine / electric driven types
Minimize quality variation utilizing IoT‐ Connect the mother plant in Japan andproduction bases outside Japan aiming tomanage data by each manufacturing process
in details=> Pursue stable quality level
throughout the world

In‐house developed
cutting tools

Manage important quality standard
at each manufacturing line

24/27

Car air‐conditioning Compressor
5. Utilization of present technologies to further differentiate TICO,
application of such technologies to new areas

Present areas‐ Pursue more compact and lighter weight products‐ Pursue better fuel efficient performance
Enhance product appeals of in‐house developed motors and inverters‐ Further increase our advantages of quietness and low vibration
those are more important for electric driven vehicles
Meticulous evaluation by in‐house developed facility re‐creating the actualvehicle‐fitted conditions‐ Respond to further evolving electric driven vehicles as well as self‐driven vehicles

New areas

Develop compressors to cool heating parts such as electronic
components as well as batteries, in addition to cooling vehicle interior‐ Develop new products applying compressing technologies ofcar air‐conditioning compressors
Oxygen supplying air compressor and hydrogen circulation pump for fuel cell vehicles

25/27

Toyota Industries’ various products for electric driven vehicles
HV, PHV, EV
DC-DC Converter

FCV

Plastic Glazing
Panoramic Roof

HydrogenCirculation Pump

Oxygen-supplying
Air Compressor

ElectricCompressor
Charging StandOn-board
Charger
4WD RearInverter

DC-AC Inverter

Inverter for Hydrogen
Circulation Pump

Booster
ReactorContributing to electrification of vehicles with wide range of elemental technologies
including power equipment and equipment for lighter weight
26/27

TOPIC
Demand increase of our air‐jet looms against a backdrop of more stringentenvironmental regulations in China<Backdrop>‐ More stringent regulations from 2017 for discharged water drained from water‐jet looms
at Wujiang District, Jiangsu Province, where is one of the chemical fibers production areasin China.
‐ Factories using low performance water‐jet looms are required mandatorily to treat
discharged water appropriately.
‐ Generating replacement demand for air‐jet looms which use no water.

<Action of and effect on Toyota Industries>‐ Further promote sales expansion activities of our superior energy‐saving air‐jetlooms which possess high presence in China.
‐ Additional order increase by hundreds of units
is expected in FY2019.
Further strict regulations in Chinese market may lead sales expansion
opportunities for our other business domains including Materials Handling
Equipment and Car Air‐conditioning Compressor those we sell high
ECOROP, TICO original character toenvironmental performance products.
help raise eco‐awareness
27/27

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 to be taken as historical fact.
Projections and forward‐looking statements are based on the current expectations and estimates ofToyota Industries and its Group companies. All such projections and forward‐looking statements are basedon management’s assumptions and beliefs derived from the information available to it at the time of
producing this report and are not guarantees of future performance. You should also be aware thatcertain risks and uncertainties could cause the actual results of Toyota Industries and its Group companies
to differ materially from any projections or forward‐looking statements appearing in this report. Theserisks 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.