FY2019 2nd
Quarter
Financial Results
November 1, 2018

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

1/38

Points of Financial Results for FY2019 2Q
1. Net sales increased due mainly to favorable businesscondition of Materials Handling Equipment segment.
On the other hand, operating profit decreased becauseof one time effect and other reasons.
2. Interim dividends increased to ¥75 per share,¥5 increase compared with previous year.
3. Full year forecast of net sales, profit before income
taxes and profit attributable to owners of the parent
are raised.
2/38

Performance <FY2019 2Q>(Billion yen)

FY2018FY2019(IFRS)(IFRS)

ChangeNet sales

937.9

1,057.0

119.1

12.7%

Operating profit

77.0

61.3

（15.7） （20.3%）

Profit before income taxes

110.3

98.3

（12.0） （10.8%）

Profit attributable to ownersof the parent

80.8

74.4

（6.4）

（8.0%）

Earnings per share¥260.49¥239.65（¥20.84）-

Dividends per share

¥70

¥75

¥5

-

¥/US$

¥111

¥110

（¥1）

-

¥/Euro

¥126

¥130

¥4

-

‐ Net sales increased due mainly to unit sales increase as well as overall growth of value chain in the
Materials Handling Equipment segment..
‐ Profit decreased as one‐time effect of changes in retirement benefit plan was included in FY2018.
‐ Interim dividends increased by ¥5 per share compared with previous year.
3/38

Segment Information <FY2019 2Q>
Net sales [Operating profit](Billion yen)

FY2018FY2019(IFRS)(IFRS)

ChangeUnit sales(Thousand units)

VehicleEngine

35.3
46.8

35.0
49.3

(0.3)
2.5

(1.0%)
5.3%

Car Air-Conditioning
Compressor

170.4

173.7

3.3

1.9%

Electronics parts,
Foundry and others

34.3

35.4

1.1

3.1%

287.0
[19.4]

293.5
[3.7]

6.5
[(15.7)]

2.3%

Materials Handling
Equipment

591.7[51.2]

697.7[52.0]

106.0
[0.8]

17.9%

Textile Machinery

30.0
[3.3]

36.0
[3.0]

6.0
[(0.3)]

20.1%

Others

29.0
[2.8]

29.6
[2.6]

0.6
[(0.2)]

1.9%

Total

937.9
[77.0]

1,057.0[61.3]

119.1[(15.7)]

12.7%

Automobile

FY2018FY2019ChangeRAV4Vitz (Yaris)

101
47

97
50

(4)
3

Vehicle

148

147

(1)

DieselGasoline

157
112

175
62

18
(50)

Engine

269

237

(32)

Car Air-Conditioning
Compressor

16,35016,670320

Materials Handling
Equipment

123

136

13

Air-jet loom

2.1

4.1

2.0

Vehicle:Net sales was on par with the previous year as Vitz (Yaris) increased although RAV4 decreased.
Engine:Although AR gasoline engines decreased, increase of GD engines led to increase of net sales.
Car Air‐Conditioning:Increase of unit sales mainly in North America and emerging countries
Compressor
contributed to increase of net sales although unit sales in Europe decreased.
Materials Handling:In addition to unit sales increase in each area including North America andEquipment
Europe, growth of Logistics Solutions business contributed to increase of net sales.
4/38

Changes in Operating Profit
Year‐on‐year comparison (FY2018 2Q and FY2019 2Q)
Operating profit ¥15.7 billion decrease (¥77.0 to ¥61.3 billion)(Billion yen)

77.0

(14.3)

One-time effectof changes inretirement
benefit plan

(14.3)FY2018+17.8+4.3
Cost reduction

(6.0)
(4.8)
Increase in
raw material
cost

Increase inlabor cost

(3.4)

(9.3)

Increase indepreciation

Sales efforts

61.3
Increase in
expenses andothers+22.1(23.5)FY2019‐ Despite of contributions of sales efforts and cost reduction, previous year’s one‐timeeffect of changes in retirement benefit plan as well as such impacts including increases in
raw material cost and labor cost led to decrease in operating profit.

5/38

Performance <FY2019 2Q>(Billion yen)

FY2018FY2019(IFRS)(IFRS)

ChangeInvestments intangible assets

46.9

58.3

11.4

24.4%

Depreciation

37.5

40.9

3.4

9.1%

‐ Investments in tangible assets in the Automobile segment increased, mainly forEngine business.

6/38

Performance <FY2019 2Q>(Billion yen)

As of March 31,
2018

As of September
30, 2018

Total assets

5,258.5

5,428.0

169.5

3.2%

Total equity

2,633.8

2,770.7

136.9

5.2%

Ratio of share of equity
attributable to ownersof the parent

48.6%

49.6%

-

-

254

259

5

-

Consolidated
subsidiaries

Change*Total assets and total equity increased due to an increase inmarket value of investment securities.

7/38

Performance <FY2019 Forecast>(Billion yen)

FY2018FY2019(IFRS)(IFRS)

2,003.9

2,200.0

196.1

9.8%

2,150.0

Operating profit

147.4

135.0

(12.4)(8.4%)

135.0

Profit before income
taxes

209.8

198.0

(11.8)(5.6%)

189.0

Profit attributable toowners of the present

168.1

150.0

(18.1)(10.8%)

146.0

Earnings per share¥541.67¥483.11(¥58.56)-¥470.23

Cash dividends per
share

¥150

¥150

-

-

¥150

¥/US$

¥111

¥110

(¥1)

-

¥105

¥/Euro

¥130

¥130

-

-

¥130

Net sales

ChangePrevious
Forecast

8/38

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

FY2018FY2019ChangePrevious
Forecast

VehicleEngineCar Air‐Conditioning
Compressor
Electronics parts,
Foundry and others

72.1
98.7

69.0
110.0

(3.1)
11.3

(4.3%)
11.4%

69.0
110.0

351.4

351.0

(0.4)

(0.1%)

361.0

72.7

75.0

2.3

3.1%

75.0

Automobile

595.0[29.6]

605.0

10.0

1.7%

615.0

Materials Handling
Equipment

1,283.0[104.9]1,460.0

177.0

13.8%

1,410.0

Textile Machinery

65.5
[6.1]

75.0

9.5

14.5%

65.0

Others

60.3
[6.6]

60.0

(0.3)

(0.6%)

60.0

Total

2,003.9[147.4]2,200.0[135.0]196.1[(12.4)]9.8%

2,150.0[135.0]9/38

Segment Information <FY2019 Forecast>
Unit sales(Thousand units)

FY2018FY2019ChangePrevious
Forecast

205
93

235
50

30
(43)

237
48

298

285

(13)

285

330
244

403
222

73
(22)

403
222

574

625

51

625

Car Air‐Conditioning
Compressor

33,42034,200780

35,400Materials Handling
Equipment

263

294

31

294

Air‐jet loom

6.3

8.3

2.0

6.2

RAV4
Vitz (Yaris)

VehicleDieselGasoline

Engine10/38

Changes in Operating Profit
Year‐on‐year comparison (FY2018 full year and FY2019 full year forecast)
Operating profit ¥12.4 billion decrease (¥147.4 to ¥135.0 billion)+14.0(14.0)(Billion yen)

+26.0

(8.0)
Cost reduction

147.4(14.3)

Increase in
raw material
cost

(5.3)
Increase inlabor cost

(10.8)
Increase indepreciation
Increase in
expenses andothers

One-time effect Sales efforts
of changes inretirement
benefit plan

(14.3)

135.0

+40.0

(38.1)FY2018FY2019¥1.9 billion of substantial profit increase
11/38

Performance <FY2019 Forecast>(Billion yen)

FY2018FY2019ChangeInvestments in tangible
assets

115.4

110.0

(5.4)

(4.7%)

Depreciation

77.7

83.0

5.3

6.8%

12/38

II. Our Business Initiatives
toward Medium‐Term GrowthMaterials Handling Equipment
Car Air‐Conditioning Compressor
Vehicle / Engine
1. Circumstances surrounding the business
2. Business direction of Materials Handling Equipment Segment
3. Initiatives of lift truck business4. Initiatives of logistics solutions business5. Direction of R&D of both lift truck and logistics solutions businesses

13/38

Materials Handling Equipment
1. Circumstances surrounding the business
Circumstances surrounding the business have been drastically changing due to expansion of
the global economy, labor shortages, more stringent environmental regulations, theevolution of IT and others
GDP (by region)(US$ trillion)(Million)

250

Working‐age population of major areas(ages 15‐64)

218

Japan
USA

192

200

Others

167
145

150

Europe
China
India

India

123

China

98

100

EuropeAfrica

USA

50

Japan
0
2013

2020

2025

2030

2035

2040

Source: U.S. Energy Information Administration International Energy Outlook 20172010 2015 2020 2025 2030 2035 2040 2045 2050
Source: United Nations World Population Prospects : The 2017 Revision‐ Sustainable growth of global economy led by emerging countries‐ Less working‐age population except in certain countries / regions‐ More stringent environmental regulations because of global warming‐ Progress of new technologies including IT, IoT and AI, as well as the advent of a superadvanced information society

Large opportunity of quantitative growth as well as further added‐value
products and services in the fields of materials handling and logistics.
14/38

Materials Handling Equipment
2. Business direction of Materials Handling Equipment Segment
Aim for further growth of overall Materials Handling Equipment Segment via stronger ties
of lift truck and logistics solutions businesses, where market growth is expected

Lift truck business

Logistics solutions businessContinuous growth of lift truck
market is expected thanks tostable demand backed by such Acceleration of connectedor automated truck andadvantages as flexibility ofsystem utilizing IT and IoT
usage.
Differentiation of our business byhigh‐quality products and services
to meet various customer needs
Enhancement of overallvalue chain

Utilization of newtechnologies andknowledge as well as
acceleration of R&D by
promoting open
innovation activities

Logistics solutions market is
expected to expand
significantly due to increasingneeds for more efficiencies at
distribution centers following
growth of e‐commerce.
Stronger cooperation between
Bastian, Vanderlande and TICO ineach area and function
Business expansion worldwide
by meeting growing demand

15/38

Materials Handling Equipment
3. Initiatives of lift truck business Market and our sales
Sales expansion of lift trucks
by responding to the needs of continuously growing market(Thousand units)
300

Lift truck market*(Thousand units)

Our sales
Others

1,500

1,000

500

200

Europe100

North America
Japan

0

0

14

15

*: Estimation of TICO

16

17

18

(Forecast)

20 (CY)

Market growth continues
Continues to grow supported bystable global economy
Global logistics volume increasing
including new demand fromexpanding e-commerce

15

16

17

18

19
(Forecast)

21

(FY)

Increase in unit sales by leveraging productappeal and well‐developed network
FY2019 units sales increases in eachregion backed by market growth
Respond to customers’ various needs
associated with increasing environmental
consciousness by offering a wide rangeof product lines
16/38

Materials Handling Equipment
3. Initiatives of lift truck business Enhancement of production outside Japan

Increased production outside Japan based on
local production for local demand strategy<Lift truck production in the U.S.A.>

Lift truck production volume
FY2013

Approx. 40K units/year(Indiana)

FY2018Globally important
operation overseeing
quality at othermanufacturing plants
outside JapanJapan
Approx. 25%

Japan
Approx. 30%

185
OutsideJapan
Approx. 70%(Thousand units)

Approx. 50K units/year(New York)

263
Warehousetruck

OutsideJapan
Approx. 75%(Thousand units)

Counterbalanced
type

‐
‐

Almost all lift trucks sold in the U.S. are
locally madeConsidering to switch some parts fromimported to locally procured

17/38

Materials Handling Equipment
3. Initiatives of lift truck business Expansion of value chain

Maximize outcome of expanded value chain such as
After‐sales services and sales finance
After‐sales services

Components• Promoting more efficient lift truck
management utilizing IT together
with Microsoft• Strengthening product appeal ofinternally developed components suchas engines, motors and controllers=> Differentiate lift truck performance,
sales expansion to non-lift truckequipment

Sales finance• Further enhancing capabilityof after-sales services=> Increase
earnings byoffering life
cycle services

・Enhance the business globally=> Respond to the needs of lease,rental and second-hand trucks

Emerging markets• Reinforce product appeal byleveraging Tailift=> Respond to more
stringent emission
regulations in China
18/38

Materials Handling Equipment
4. Initiatives of logistics solutions business

Growth of market

Logistics solutions market size is expected to grow, centered on Europe
and North America, driven by growth of retail and e‐commerce

CY2017
JPY 3 trillion

CY2025
JPY 6 trillion
OthersOthersOther AsianCountries

Europe

Japan
China

Other AsianCountries

EuropeJapan
North America

China

North
America

Note: Automated materials handling equipment for assembly is not included.
Source: Estimated by TICO based on Markets and Markets (Material handling equipment market global forecast to 2023) and others

19/38

Materials Handling Equipment
4. Initiatives of logistics solutions business

Steps for business growth

FY2018: Get‐to‐know‐each‐other period, started cooperative activities
FY2019: Initiated discussion on global vision and strategy, form the framework by November 2018

FY2018FY2019June

May

Respectively promotestrategies
TMHG*1 &TALG*2cooperative
activities

FY2020November

Build a task team,form the frameworkof the Vision andStrategy

WS 1

EuropeWS 2

North America

WS 3

Bastian ‐ Vanderlande

WS 4(Working Stream
(WS))
WS 5

Japan
R&D

*1: Toyota Material Handling Group, lift truck business*2: Toyota Advanced Logistics Group, logistics solutions business

Model case

Formulate
the road map

TALG
Vision & Target
2025

Generate model cases throughcooperative activities, thereby
realizing synergy effects as early as
possible while embedding such cases
into the strategy and road map.
20/38

Materials Handling Equipment
4. Initiatives of logistics solutions businessBusiness situation at present

Implementing activities for business expansion steadily
Discussion on strategies for businessexpansion at the global meeting

Stable order increase of
Vanderlande

Top managements of Bastian,Vanderlande and Toyota Industries meetand discuss about tasks and strategy on
various matters to share a common viewof future direction.

Stable order increase including new
airport projects as well as after‐
sales services of each businessdomainMajor discussion themes, September
Ideas for TALG vision, mission and value
Sales

R&D

‐ Sales activity
cooperation‐ Focus region‐ Responses bycustomerindustry‐ Cross‐selling‐ Global Key
Account‐ Consideration of R&D
cooperation structure asa group‐ Information sharing of focus
technologies and solutions‐ Commonalization andstandardization oftechnologies‐ Utilization of each company’s
resources

Order volume of Vanderlande(JPY billion)

250

200

150
CY2016 (reference)

FY2018FY2019 (forecast)

21/38

Materials Handling Equipment
4. Initiatives of logistics solutions business

Cases of cooperation

Bastian, Vanderlande and Toyota Industries arecooperating on sales activities
Case 1: Bastian and TICO
cooperation in Thailand

Case 2: TMHE’s*1 AGFs*2 supplied to amajor customer of Vanderlande

Following the entry of an autoparts customer A of Bastian in
the Thai market, TICO’s local
operation provides various
supportOne of Europe’s leading retailers
ordered Vanderlande to supply
TMHE’s AGFs into its new
distribution center to build a highly
automated center*1: Toyota Material Handling Europe, lift truck operation in Europe*2: Automated Guided Forklift

22/38

Materials Handling Equipment
5. Direction of R&D of both lift truck and logistics solutions businesses

Contribute to customers’ efficient logistics by leveraging new technologies<Mid‐to‐Long‐term direction>(1) Further enhancing product appealof lift trucks‐ Higher performanceand efficiency‐ More product lineups‐ Utilization of next‐
generation technologies(2) Development ofrobotics technologies‐ Automated driving‐ Advanced operation support(3) R&D using AI and IoT‐ Materials handling equipment andsoftware to be connected,
integration of data

<Actions>(1) Promote speedy R&D by engineers
in each region with extensive
knowledge of customers’ needs,
share R&D direction and progress
globally(2) Enhance product lineup throughcooperation between both lift truck
and logistics solutions businesses(3) Pursue open innovation together
with advanced research firms anduniversities throughout the world,
accelerate product development
utilizing cutting‐edge technologies
23/38

Materials Handling Equipment
5. Direction of R&D of both lift truck and logistics solutions businesses

Nagoya University Hospital and TICO co‐developed robot transfer system
Toyota Industries made frequent
visits to the medical front wherelabor shortage is a critical issue,
and aimed to generate solutions
with medical staff.

Runs avoiding people
and obstacles.

Autonomous running robot automaticallytransfers specimens, including blood, as wellas medicines, safely, securely, precisely andefficiently, thereby contributing to a
reduced load on medical staff.

Unlocks doors of rooms
and gets on and off
elevators.

Ensures security ofimportant transferred
items.

Four robots are undergoing a field test at Nagoya University Hospitalfrom January 2018 through March 2019.
24/38

Materials Handling Equipment[TOPIC]

Toyota Industries exhibited at Logis‐Tech Tokyo 2018 with largest‐ever space,appealing our comprehensive strengths as well as latest technologies

Approximately 35,000 visitors in total to our booth within four‐day period
Appealed our aim to become a global logistics solutions provider supportedby the cooperation of Bastian, Vanderlande and Toyota Industries
Exhibited numerous products with latest automation technologies,
including SLAM* AGF*: Simultaneous Localization and Mapping

25/38

II. Our Business Initiatives
toward Medium‐Term GrowthMaterials Handling Equipment
Car Air‐Conditioning Compressor
Vehicle / Engine
1. Compressor sales results and forecast
2. Demand of compressor by type and our actions
3. Our initiatives in response to changes surrounding the business
1) More stringent fuel efficiency regulations
2) Accelerating R&D of car manufacturers3) Response to small volume models due to diversification of customer needs
4) Stronger needs for local production
26/38

Car Air‐Conditioning Compressor
1. Compressor market and our Initiatives
While automobile market grows at sluggish pace, aim for sales expansion mainly for Japan,
North America, China and Others regions backed by increased earlier orders.

(Million units)

GlobalNorth AmericaJapan
32,55033,42034,20010,5905,940

30,370

5,410
3,010

3,020

2,930

2,950

FY18

FY19 (Forecast)

17,53017,070ToyotaSuzukiEurope
9,510
16,350

FY17

FY18

FY19

(Forecast)

5,180

5,410

FY18

FY19 (Forecast)

7,380

7,720 (Major increase)

4,870

Benz
AUDI/VW

FY16

Chrysler
Ford
GM

China, Others(Major decrease)

4,860

5,760

9,340

16,670

FY15(Major increase)

5,970 (Major increase)

29,32011,170

3,790

3,880

AUDI/VW
Toyota

4,650

4,470

3,590

3,840

FY18

FY19 (Forecast)

FY18

FY19 (Forecast)

27/38

Car Air‐Conditioning Compressor
2. Demand of compressors by type and our actions

DemandOur actions

While shift to variable‐
displacement type is
expected, stable demand
continues backed bydemand increase centeredon emerging countries

Develop highly reliable andcompetitively priced
products through various
actions including close
communications with car
manufacturers

Variable‐displacement typecontinues to be mainstay of
our compressors due tomore stringent fuelefficiency of internal‐
combustion vehicles

Achieve further
improvement of fuel‐efficient capability with ourunique technologies, while
continuing to aim for highquality in manufacturing
throughout the world

Expansion in demand is
expected to accelerate formid‐ to long term backed byincreasing EVs, including
HVs and PHVs

Acquire business for electric
powered vehicles leveraging
our product development
capabilities utilizing bothmechatronics andelectronics technologies aswell as stable production
capability

25,000
Fixed‐displacement
20,000(Thousand units)

15,00010,0005,000
004 06 08 10 12 14 16 18 20 22 24 26 (FY)25,000
Variable‐displacement
20,000(Thousand units)

15,00010,0005,000
004 06 08 10 12 14 16 18 20 22 24 26(FY)

25,000Electric
20,000(Thousand units)

15,00010,0005,000
004 06 08 10 12 14 16 18 20 22 24 26 (FY)28/38

Car Air‐Conditioning Compressor
3. Our initiatives in response to changes surrounding the business
More stringent fuelefficiency regulations

Accelerating R&D of
car manufacturers

Response to small volume
models due to diversificationof customer needs

Stronger needs for
local production

Our initiatives
Visualization of fuel efficiency performance by developing fuel efficiency measurement
system in response to new regulations<WLTC* mode>‐ Fuel efficiency measurement method close to actual driving including city, suburbs and highway‐ Applied in Japan from October 2018, following Europe
Developing a fuel efficiency measurement system inconsideration of conditions of WLTC mode enables us tomeasure compressor’s effect on actual fuel efficiency‐ Possible to measure precisely by accumulated know‐how
through internal development of measurement system‐ In addition to engine‐driven vehicle, our measurement system
can also be used for hybrid vehicles by leveraging our fuel efficiency
technologies accumulated in our vehicle assembly business＊：Worldwide harmonized Light vehicles Test Cycle

Fuel efficiency measurement

29/38

Car Air‐Conditioning Compressor
3. Our initiatives in response to changes surrounding the business
More stringent fuelefficiency regulations

Response to small volume
models due to diversificationof customer needs

Accelerating R&D of
car manufacturers

Stronger needs for
local production

Our initiatives
Support to car manufacturers
With our analyzing capability using
internally developed measurement system,
propose solutions to noise or vibration of
not only the AC systems but also vehicles
as a whole

Conduct various measurement tests
efficiently backed by our 20 years ofexperience in developing systems forelectric powered vehicles

Cabin Noise

Good<Simulation of noise optimization>

30/38

Car Air‐Conditioning Compressor
3. Our initiatives in response to changes surrounding the business
More stringent fuelefficiency regulations

Accelerating R&D of
car manufacturers

Response to small volume
models due to diversificationof customer needs

Stronger needs for
local production

Our initiatives
Build a cost competitive small volume production line
Present

Implemented in 2018

According to the difference of the shape ofparts, each model is manufactured byrespective mass‐ to mid‐volume production
line
Respective production lines

Developed lean production line suitable
for special small volume models

Borecutting

Outsidediametercutting
Outsidediametercutting

Outsidediametercutting

Machining

Machining

Machining

BoringSmall volume generalproduction line+

Outsidediametercutting

Machining

BoringOur internal development capability
enables flexible production lines,
combining plural production lines into one
31/38

Car Air‐Conditioning Compressor
3. Our initiatives in response to changes surrounding the business
More stringent fuelefficiency regulations

Accelerating R&D of
car manufacturers

Response to small volume
models due to diversificationof customer needs

Stronger needs for
local production

Our initiatives
Stable quality production close to car manufacturers

Through usage of IoT andthe sharing of bestpractices of manufacturingbases throughout theworld, aim for stable quality
and productivity globally.

<Germany> TDDK<USA> MACI
<Japan> Kariya<China> YST<China> TACK

<Japan> <Obu><Japan> <Higashiura><USA> TICA
<USA> TACG

<Indonesia> TACI

32/38

Car Air‐Conditioning Compressor
Enhancement of production outside Japan[Global production]
Increased production volume outside Japan

FY2018FY2013
Japan
Approx. 50%

Outside Japan
Approx. 50%

23,420Japan
Approx. 40%

Outside Japan
Approx. 60%

33,420[Production in the U.S.A.]
Compressor
production bases(Michigan, Georgia)

Key component
production base (Georgia)

Annual production in the U.S. alreadyreaches about seven million units‐ Covering about 70% of our sales in the U.S.

Manufacture key components andmaterials as well in the U.S.

(Thousand units)(Thousand units)<Basic approach of global production structure>

Basically manufacture at the place near the customers,
while mother plant in Japan supports fluctuations of production volume outside Japan.
33/38

Car Air‐Conditioning Compressor[TOPIC]TDDK celebrates production of 50 millionth car
air‐conditioning compressor
TDDK <Germany>

Supply base for European customers(Production started in April 2000)

In addition to production of variable‐
displacement type, conducts development
and measurement locally, realizing shorterR&D lead time

34/38

II. Our Business Initiatives
toward Medium‐Term GrowthMaterials Handling Equipment
Car air‐conditioning Compressor
Vehicle / Engine
Vehicle: Contributing to Toyota Group with our strengths ofmanufacturing and R&D capabilities
Engine: Further enhancing businesses of both automobile
as well as industrial engines

35/38

Vehicle
Aim for overwhelming contribution to Toyota
Group with our strengths of manufacturing
and R&D capabilities◆Strengthening
R&D capability

Received the Toyota Quality Control Award
from Toyota Motor for six consecutive years‐ All related functions from R&D to
manufacturing work together tostrengthen our model life management◆Enhancing
manufacturing
capability‐ Commercialization of plastic glazing that
contributes to lighter weight of vehicles‐ Improvement of quality‐ Improvement of productivity‐ More efficient logistics‐ Establishment of highly
flexible production lines
enabling model changes in ashorter period

2015

Business growth＋●Renovation of the plant that keeps
competitiveness for next 20 to 30 years‐ Combination of Toyota Motor’s latest technologies
and TICO Nagakusa Plant’s unique know‐how‐ Establishment of production structure to manufacture
more value‐added vehicles‐ Creation of highly flexible production lines meeting
fluctuations of production models

20182020 (FY)36/38

EngineBusiness direction
Aim for further enhancement of businesses of both automobile as well as
industrial engines with our accumulated development and production experiences
Diesel engine
403(Thousandunits)

242

FY16

330
294

FY17

FY18

‐ Response to continuous demands
in emerging countries‐ Improvement of quality andproductivity of GD type production
in both Japan and India‐ Further improvement ofdevelopment and production
GD diesel
efficiency by consolidating
FY19
engine(Forecast)
the business from TMC

Gasoline engine‐ Successful productioncommencement of new engine‐ Increase of production volume

Turbocharger‐ Sales expansion bystrengthening
competitive‐
ness
Turbocharger
mounted on
GD diesel engines

Engines for lift truck andgeneral industries‐ Increase of models of con‐struction machinery and otherequipment mounting our engines Toyota 1KD
diesel engine‐ Order increase for GHP and CHP‐ Contribution to improvement of our lift trucks
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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.

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