Tadashi Ishikawa

Tetsuro Toyoda

ChairmanPresident

Message from the Chairman and President
Business Results for Fiscal 2009 andInitiatives in Fiscal 2010

achieve a recovery in earnings. Nevertheless, these measures

The world economy declined abruptly in the year ended

at which markets have contracted, and Toyota Industries

March 31, 2009 (fiscal 2009), as the worsening of the real

inevitably recorded steep declines in sales and profits, aseconomy spread beyond Europe and the United States toillustrated by a ¥416.3 billion decline in consolidated net sales

emerging countries, reflecting the severe impact of the globalyear-on-year to ¥1,584.2 billion. Meanwhile, we posted anfinancial crisis.

operating loss of ¥6.6 billion, a decrease of ¥103.4 billion,To respond to this changing external environment, sincespring 2008 the Toyota Industries Group has adopted outof-the-box thinking with a set of new values based on the2were unable to compensate for the unprecedented speed

whereas ordinary income declined ¥112.1 billion to ¥14.3billion.
Although we ultimately posted disappointing businessrecognition that “times have changed” in order to enhance theresults, Toyota Industries’ management keenly felt the pain

Group’s overall capabilities. In response to a sharp decline inof this downturn and quickly seized the initiative to achieve anet sales from autumn 2008, the entire Toyota Industries Group

recovery in our earnings. We believe this decisive response

has made collective efforts since December 2008 to quickly

has yielded a number of positive results, such as prompting

and systematically implement comprehensive measures toa change in the mindset of every employee and stimulating

Toyota Industries Report 2009concerted Group-wide efforts to vigorously tackle the various

Future Business Strategies

challenges we face.

In the Materials Handling Equipment Segment, we will

Looking ahead to the fiscal year ending March 31,

increase our competitiveness by standardizing internally2010 (fiscal 2010), we expect the operating environment

developed key components and enhancing the productsurrounding the Toyota Industries Group to deteriorate further

appeal of our electric lift trucks, for which we foresee

amid concerns about a protracted global slowdown as wellincreased demand in line with the rising importance ofas foreign exchange and stock market trends. The current

protecting the global environment. We will further bolster oureconomic turmoil is said to be a “once-in-a-century” crisis.

lineup of lift trucks in December 2009 with the planned launch

Therefore, we must be prepared for this recession to beof a new hybrid lift truck that combines a diesel engine,

prolonged. Even when the economy eventually rebounds,

electric motor and battery. Realized through the collective

society and industry could conceivably undergo significant

competencies of the Toyota Group, this innovative new

structural changes in the aftermath of the turmoil. As theseproduct is just one way in which we will continue to lead theanticipated external changes unfold, the Toyota Industries

industry in environmental technologies.

Group must go back to the basics and vigorously promote its

On the sales front, we will focus on leveraging theown structural reforms and adopt new ways of thinking as itstrengths of the sales structure created through thefortifies its management foundation based on new values andintegration of the TOYOTA- and BT-brand sales channels

concepts.

in Europe and other regions to expand our share in those

In working to accomplish these goals, our most urgent

countries, especially in Europe, the world’s largest market. Wetasks will be to reform our business and cost structures

will also fortify marketing functions to ensure timely response

and raise our profitability. We will streamline our corporate

to rising demand in emerging countries, particularly BRICs

structure and lower our break-even point to build a solid(Brazil, Russia, India and China) markets.

foundation capable of securing profits even without sales

In the Automobile Segment, we are actively developinggrowth. Specific measures will include bolstering andand manufacturing products which meet growing demandenhancing profit-improvement activities launched in late 2008

for lightweight, compact, fuel-efficient, low-cost vehicles

and making exhaustive efforts to lower fixed costs.

as well as in response to the expanding market for hybrid

Along with these steps, we will formulate a range ofvehicles. In the Vehicle Business, we plan to reinforce ourmeasures for expanding sales, which include introducing new

outstanding capabilities in QCD (quality, cost and delivery) for

products and promoting sales expansion activities.

manufacturing compact vehicles to pursue the development

Setting our sights on medium- to long-term growth, weof reasonably priced, high-quality products. Another task

will accelerate our preparations for a future leap forward

will be to accelerate development and aim for earlyby planning and developing products from the perspective

commercialization of lightweight vehicle technologies, such asof customers. We will also promote the development ofplastic glazing, that are essential for enhancing fuel efficiency.

advanced technologies in order to provide high value-

In the Engine Business, we will enhance the productadded products that anticipate customer needs. At thecompetitiveness of our clean diesel engines, which are one

same time, we will strengthen and expand our sales andmeans for realizing a low-carbon society, while expanding

service networks as well as our value chain. With regards

sales of gasoline engines and industrial-use engines.

to technological development in particular, we will strive toIn the Car Air-Conditioning Compressor Business, we will

accurately identify changes in the market and operating

solidify our overwhelmingly competitive advantage in fuel-environment and swiftly examine technological themes that

efficient air-conditioning compressors for internal-combustion

will form the core of our future growth, backed by the totalengine vehicles. We also plan to offer a series of electricallycommitment of all members of the Toyota Industries Groupdriven air-conditioning compressors for the Toyota Prius andthrough the cooperation of each division.

other hybrid vehicles, which are expected to enjoy a large
rise in demand. We anticipate these measures will enable

Toyota Industries Report 20093Tetsuro Toyoda
President

us to solidify our position as a top manufacturer of car air-conservation and sustainable development globally. As

conditioning compressors.

such, we will emphasize these elements in our productIn the Car Electronics Business, converters for auxiliary

development, with plans to further accelerate theequipment developed and manufactured by Toyota Industries

electrification of industrial vehicles and automobiles. Toyota

have been fitted in numerous hybrid vehicles, most notablyIndustries stands firmly positioned to respond to this trend

the Toyota Prius. The latest model launched in May 2009

backed by its deep reservoir of electromotive technologies

also integrates a newly developed direct cooling system forand know-how cultivated in the development of electric lift

the power control unit in addition to a converter for auxiliary

trucks as well as its comprehensive automotive technologies

equipment. Aided by such positive factors as tax breaks forspanning vehicles, engines and components. We intend toeco-car purchases and the introduction of scrap incentives,

integrate these element technologies to realize synergies

we believe the field of hybrid vehicles, plug-in hybrid vehicles

for creating products that are ecological and benefit society

and electric vehicles to be one of the most promisingthroughout the world.

markets. Looking ahead, we aim to build our Car Electronics
Business into a core business by broadening our productEnvironmental Conservation

domains in this field.

Recognizing the growing importance of environmental

At Toyota Industries, we define 3Es to be energy,

4protection, Toyota Industries actively undertakes

environmental protection and ecological thinking that areenvironmental conservation activities in its role as a company

incorporated into our products and operating activities.

involved in manufacturing. These activities are based on

We believe these 3Es are key to promoting environmental

its corporate principle of “Toyota Industries believes that

Toyota Industries Report 2009

economic growth and conservation of the natural environment
are compatible. It strives to offer products and services that

We will continue to broaden and enhance our social
contribution activities throughout the world.

are clean, safe and of high quality.”
As specific initiatives, we have designated curbing global

Human Resources Development

warming and resource utilization as priority issues in ourWithin today’s rapidly changing business environment, weFourth Environmental Action Plan. In addressing these issues,

believe that human resources development will play an

we are working to minimize environmental loads in all phases

unprecedented and important role in ensuring the sustainableof our operations, from the product design and procurement

growth of the Toyota Industries Group. As part of activities

stages through to production processes, logistics, productto commemorate the 80th anniversary of our founding, weuse and recycling.

established the Hazu Academy, a global learning center,

The Toyota Industries Group strives for balancein Aichi Prefecture. The academy functions as a venue forbetween protecting the earth’s environment and economic

nurturing independent-minded personnel who take thedevelopment. In working toward this goal, management

initiative to think, learn and act, and thereby bear the torch

and all employees act together to realize “environmentalto ensure the growth of the Toyota Industries Group in themanagement.”

future. Targeting management and employees from insideand outside of Japan, the academy provides training forSocial Contributions

promoting the penetration of Toyota Industries’ management

As a responsible corporate citizen, Toyota Industries

philosophy, formulating management strategies from a global

carries out wide-ranging social contribution activities

perspective and enhancing problem-solving capabilities.

focused on the local communities in which we do business.
Responding to requests from regional governments andvarious organizations, Toyota Industries is proactively

Looking to the future, we remain committed to further

involved in a host of activities that include providing humanraising corporate value while aiming for sustainable growth

resources for welfare facilities and traffic safety activities. We

in harmony with society. In closing, we truly appreciate thealso make donations for welfare-related events as well as

loyal support of all our stakeholders, including shareholders,

youth development, community, sports and environmental

customers, business partners, local communities andconservation activities, and open our facilities to the public for

employees and their families, and ask for their continued

use as venues for various community events.

guidance and understanding.

In Japan, we further demonstrated our commitment
to enhancing our social contribution activities by opening
the Heartful Volunteer Support Center in July 2008 forundertaking a variety of community-oriented efforts. The
center disseminates volunteer-related information toAugust 2009

employees along with relevant information to the residents
of local communities. It also provides learning opportunities
concerning volunteering for events and support forparticipants in volunteer activities.

Tadashi IshikawaChairman

We are also committed to engaging in local social
contribution activities globally. Examples include the cleanupof nearby highways and participating in tree-planting activities
in parks by employees at our U.S. subsidiaries. Also, after theSichuan earthquake in China, we donated monetary aid andTetsuro Toyoda
President

our lift trucks and sent relief supplies.

Toyota Industries Report 20095