Review of Operations
The first year of the third millennium turned out extremely well for all of Toyota Industries’ businesses.
Details of fiscal 2001 (April 1, 2000 to March 31, 2001) are as follows:

Automobile Segment
Net sales of the Automobile Segment in fiscal 2001 totaled¥457.6 billion (US$3,693.6 million), up 8.1% over fiscal 2000
(April 1, 1999 to March 31, 2000) and representing 59.6% of
total net sales. Operating income was ¥28.5 billion (US$230.2million), up 16.8%.

Net Sales ofthe Automobile Segment

Operating Income ofthe Automobile Segment(¥ Billion)(¥ Billion)

32500

30TOYOTA INDUSTRIES CORPORATION

40025300

20200

15100

100FY97 98 99 00 010FYEngine Business
The major products in Toyota Industries’ engine business arediesel and gasoline engines for TOYOTA-brand automobiles
and forklift trucks.
Diesel engines sold in fiscal 2001 totaled 170,344 units,
down 3.5% from fiscal 2000. This result reflects a reduction
in shipments of 2000cc class C-type diesel engines and4000cc class HZ-type diesel engines, which outweighed anincrease in shipments of 2000cc class direct injection 1CDtype diesel engines with a common rail fuel system, anddiesel engines for forklift trucks.
Gasoline engines sold in fiscal 2001 totaled 182,719 units,
up 10.9% over fiscal 2000. This result mainly reflects
increased sales of 5E-type and Y-type engines in line with arecovery in the domestic automobile market. New orders
from TMC to produce 2UZ-type gasoline engines also helped.
The total number of engines sold in fiscal 2001 increased
3.5% to 353,063. Total net sales of the engine businessamounted to ¥102.1 billion (US$824.0 million), up 11.1%.

Car Air-Conditioning CompressorBusiness97 98 99 00 01

ANNUAL REPORT 2001

Vehicle Business
The vehicle business accounts for the largest portion of sales
in the Automobile Segment. During the year under review,
Toyota Industries manufactured two TOYOTA-brand models,the Vitz (Yaris), TMC’s global strategic small car, and theSprinter Carib (exported outside Japan as the Corolla Wagon),a compact station wagon.
Because the model was nearing the end of its life cycle,
the number of Sprinter Caribs (Corolla Wagons) sold in fiscal
2001 decreased by 15,075 units from fiscal 2000 to 13,454
units. On the other hand, although two years have passed
since the commencement of production in January 1999,
sales of the Vitz (Yaris) increased to 262,460 units, up 38,360
over fiscal 2000. These models are manufactured underconsignment from TMC and are all sold to TMC.
Total net sales reached ¥195.9 billion (US$1,581.0
million), up 2.3% over fiscal 2000.
Toyota Motor Manufacturing France S.A.S., amanufacturing subsidiary of TMC, started production of theYaris in January 2001. Domestic production for export will
therefore gradually decrease. However, because we receivednew orders from TMC to produce the RAV4, a compact sportutility vehicle, starting May 2001, and the bB Open Deck, atall, box-like, compact vehicle with a small pickup bed,
starting June 2001, we expect the impact to be minimal.

This business develops and manufactures compressors, a core
part of car air-conditioning systems.
New orders and stable car sales contributed to a soundperformance in both domestic and overseas markets.
Car air-conditioning compressors sold in the domestic
market totaled 4.6 million units, up 8.7% over fiscal 2000.
In North America, despite an economic slowdown in theU.S., sales increased to 4.4 million units, up 18.0%. Fixeddisplacement compressors, which have excellent reliability athigh running speeds, were particularly well received bycustomers.
Car Air-Conditioning
Compressor Unit Sales(Million Units)

15

10

50
FY

97 98 99 00 01
JapanNorth America
EuropeAsia and Oceania

Industrial Vehicle Unit Sales*2(Shipments from Plants)

Car air-conditioning compressors produced for theEuropean market totaled 3.4 million units, up 26.2% overfiscal 2000. This result reflects an expansion in the Europeanmarket due to the increase of cars fitted with air conditioners,
as well as the winning of new orders after fierce competition
among rival manufacturers. In Europe, our variabledisplacement compressors for luxury cars are highly regarded.
We are now making efforts to increase sales of variabledisplacement compressors for compact cars.
Total units sold in fiscal 2001 amounted to 12.5 million, up
16.6% over fiscal 2000. Total net sales were ¥139.6 billion(US$1,126.5 million), up 16.0%.
All car air-conditioning compressors manufactured by
Toyota Industries are sold to major automobile manufacturers
globally through DENSO Corporation.

(Thousand Units)

150100500FY

The Materials Handling Equipment Segment encompasses theindustrial vehicle business and the materials handling systembusiness, which includes automated storage and retrieval
systems and automatic guided vehicle systems. Industrial
vehicle business sales accounted for about 97% of theMaterials Handling Equipment Segment in fiscal 2001.
Total net sales of the Materials Handling Equipment
Segment were ¥236.5 billion (US$1,908.8 million), up 58.6%
over fiscal 2000. Operating income was ¥14.5 billion(US$117.4 million), up 153.0%.These figures include thesecond half of BT Industries, acquired in June 2000.

Despite signs of a downturn in the U.S. economy in thesecond half of fiscal 2001, overall demand in the U.S. andEurope remained fairly strong. Unit shipments of industrial
vehicles such as forklift trucks for overseas markets increased
4,741 units over fiscal 2000 to 44,419 units (excluding thoseof BT Industries). In Japan, increased private sector capital
equipment investment boosted sales. The GENEO-B (7FBoverseas), an electric counterbalanced forklift truck, sold wellamong environmentally conscious users. In January 2001, welaunched the GENEO-R, a new electric reach truck. As a resultof these factors, our share of forklift truck sales in thedomestic market in fiscal 2001 exceeded 40% for the second
consecutive year. Unit shipments totaled 27,500, up 2,688
over fiscal 2000. Total shipments of other industrial vehicles,
including tow tractors, skid steer loaders, shovel loaders andscrubbers, decreased 201 units to 1,974 units over fiscal 2000.
The main product of Toyota Industries’ industrial vehicle
business had always been the counterbalanced forklift truck.
In June 2000, as part of our global strategy, we acquired 97%of the outstanding shares of BT Industries AB of Sweden for
SEK7.4 billion (US$759.3 million)*1, to complement andstrengthen our product lineup. As a result, Toyota Industries

00 0133

Japan
North America
EuropeAsia and Oceania* 2 The figure for fiscal 2001 includes the unit shipments of BT Industries.

can not only offer industrial trucks but can also provide
comprehensive materials handling solutions. BT Industries
continued to perform well during calendar 2000.
In addition, an agreement was entered into in December
2000 to transfer TMC’s industrial equipment sales division toToyota Industries. As a result, as of April 1, 2001, all of TMC’s
industrial equipment and related operations were combined
within Toyota Industries. These moves will enable us to provide
products and services that further satisfy customer needs.

Materials Handling System Business
The materials handling system business develops andmanufactures systems such as automated storage and retrieval
systems and automatic guided vehicles for the Japanese market.
As a result of a slight recovery in equipment investment in theprivate sector and enhanced sales efforts, sales increased bymore than 80% over fiscal 2000.
Net Sales ofthe Materials Handling
Equipment Segment

Operating Income of
the Materials Handling
Equipment Segment(¥ Billion)(¥ Billion)

300

15200

10100

5

* 1 U.S. dollar amounts have been translated from Swedish krona, forconvenience only, at the rate of SEK9.69 = US$1. After the June 2000
purchase, we continued to buy BT Industries’ shares, holding 98.2% of its
equity as of March 31, 2001.

0FY 9798 99 00 010FY

97 98 99 00 01

ANNUAL REPORT 2001

Industrial Vehicle Business

97 98 99

TOYOTA INDUSTRIES CORPORATION

Materials Handling
Equipment Segment

Review of Operations
Textile Machinery Segment

Others Segment

The Textile Machinery Segment consists mainly of thespinning machinery business, including ring spinning
frames, and the weaving machinery business, including airjet looms.
Net sales of this segment totaled ¥33.2 billion (US$268.3
million), up 43.7% over fiscal 2000. Operating income
improved dramatically to ¥35 million (US$0.28 million),
thanks to increased sales and the positive effects ofstructural streamlining. The export ratio is very high in thisbusiness, and exports accounted for 94.6% of total net sales
for fiscal 2001.

The Others Segment comprises businesses that we enteredcomparatively recently. Although the businesses are still
small, they are expected to grow rapidly and become
strategic operations of Toyota Industries.
ST-LCD*4, a joint venture with Sony Corporation, forms
the core of our Others Segment. It produces lowtemperature poly-Si TFT LCDs, expected to become a nextgeneration LCD. In addition, TIBC was established as a joint
venture with Ibiden Co., Ltd., and began production ofplastic package substrates for IC chipsets in April 1999. Thissegment also covers the press die business and others.
Although the growth of high-tech companies, our main
customers, slowed slightly in calendar 2000, both ST-LCD
and TIBC expanded sales according to plan. Net sales of thissegment totaled ¥40.0 billion (US$322.9 million), up 32.8%
over fiscal 2000. Operating income was ¥4.4 billion(US$35.2 million), up 480.5%.

Spinning Machinery Business

34
TOYOTA INDUSTRIES CORPORATIONThe spinning machinery business won new orders fromUzbekistan and increased sales in Thailand, Pakistan andIndonesia. As a result, net sales totaled ¥11.8 billion(US$95.4 million), up 101.0% over fiscal 2000. This businessalso includes the manufacture and sale of roving frames anddrawing frames.

* 4 Net sales of ST-LCD are accounted by the equity method and are notincluded in consolidated net sales and operating income or loss.

Weaving Machinery Business

ANNUAL REPORT 2001

Orders from South Korea and Taiwan for air-jet looms, thecore product of this business, decreased. This was offset bydramatically increased sales in China, as well as moderatesales increases in Indonesia and Thailand. As a result, thenumber of units sold totaled 4,578, up 973 over fiscal 2000.
Sales of water-jet looms totaled 1,202 units, up 391 units,
due mainly to increased sales in China and South Korea.
Total sales of the weaving machinery business increased
24.1% to ¥21.4 billion (US$172.8 million).
We continue to promote rationalization of our TextileMachinery Segment in order to raise productivity, and arealso working to lower costs and strengthen the product line.

Net Sales of
the Others Segment*4

Operating Income of
the Others Segment*4(Including Elimination ofInter-Segment Transactions)(¥ Billion)(¥ Billion)
650

40

430
220

Net Sales of
the Textile Machinery
Segment*3

Operating Income of
the Textile Machinery
Segment*3(¥ Billion)(¥ Billion)

40

10
100
FY

030(1)
20(2)
10(3)

0FY

9900

01(4)
FY

9900

* 3 From fiscal 1999, the Textile Machinery Segment has been separated
from the Others Segment.

01

97 98 99 00 01(1)
FY

97 98 99 00 01