FY2010 Financial Results

May 7, 2010

I. Financial Summary

Financial Results (FY2010)（Billion yen）
09/3

10/3

ChangeNet sales

1,584.2

1,377.7▲206.5 ▲ 13.0%

Operating
Income▲6.622.0＋ 28.6

Ordinary
Income14.3

31.7＋ 17.4 ＋121.4%

Net
Income▲32.7▲26.2＋ 6.5

Change(%)

−−
1 /23

Earnings Forecast (FY2011)（Billion yen）
10/3

11/3(Forecast)

ChangeChange(%)＋ 22.3＋ 1.6%

Net sales

1,377.7

1,400.0

Operating
Income22.045.0＋ 23.0 ＋104.5%

Ordinary
Income31.7

50.0＋ 18.3 ＋ 57.4%NetIncome▲26.2

27.0＋ 53.2

−2 /23

II. Company Policy for FY2011

Company Policies for FY2011 “Shift to Offensive”
Continue to strengthen our corporate structure
while maintaining streamlined structure
Solidify defenses

Shift to offensive

Be attuned to market changes andseize business opportunities
1． Recovery of lift truck market and TICOmeasures
2． Focus resources on fields related to keywords“emerging countries” and “3Es (Environment,Ecology & Energy)”
3 /23

III. Our Business Initiatives
1．Recovery of lift truck market and TICO measures
2．Focus resources on fields related to keywords“emerging countries” and “3Es (Environment, Ecology& Energy)”1) Initiatives for Automobile Segment
2) Initiatives for Materials Handling Equipment Segment

Streamlining of Business Structure and Returned to Profitability
in Materials Handling Equipment Segment
Carried out streamliningof structure based on
the assumption that
global lift truck market
will remain at 500,000unit level
1．Sharp reduction offixed costs• Worldwide workforce adjustment

Restored profitability in 3Q of FY10
through changing profit-makingstructure for sales of 100,000 units◆Unit sales

150（thousand units）

40

100

205001Q• Restructuring of production bases• Reduction of capital expenditures• Drastic cost reductions

2．Accounting treatmentof impairment loss onfixed assets（thousand units）

2Q

3Q

4Q

0

FY10

1011 （FY）

1011◆Operating income（billion yen）

（billion yen）

20-2-4-61Q

2Q 3Q
FY104Q**4Q does not include one-time expenses

151050-5-10（FY）

4 /23

Lift Truck Market Trends in 2010 and TICO Measures
Aiming for increase of unit sales by capitalizing on markets’
recoveryMarketMarketJapanJapan
NorthNorth
America
America

CY2010CY2010MarketMarket Trends
TrendsTICO
TICO Actions
Actions•• Promotion
Promotion ofof solution
solution sales
sales•• Sales
expansionformanufacturing
Sales expansion for manufacturing industry
industry
onthepathtorecovery
inaddition
toon the path to recovery in addition to robust
robust industries
industries•• Introduction
Introduction ofof newnew products
products•• Maximizing
Maximizing synergies
synergies byby integrating
integrating
governanceofTOYOTA
andgovernance of TOYOTA and Raymond
Raymond(promotion(promotion ofof complementarycomplementary productproduct supply,supply, etc.)
etc.)

EuropeEurope•• SalesSales expansion
expansion byby directly
directly managed
managed andandchannel-integrated
channel-integrated sales
sales network
network•• Bolstering
Bolstering ofof sales
sales network
network inin growing
growing markets
markets(Eastern(Eastern Europe,Europe, etc.)
etc.)

China
China

•• Introduction
Introduction ofof new
new products
products•• Aggressive
Aggressive sales
sales activities
activities corresponding
corresponding totogrowing
growing markets
markets

OthersOthers•• Strengthening
Strengthening andand expansion
expansion ofof sales
sales networknetwork
inin emerging
emerging markets
markets(Latin(Latin America,America, India,India, Southeast
Southeast Asia,Asia, etc.)
etc.)
5 /23

III. Our Business Initiatives
1．Recovery of lift truck market and TICO measures
2．Focus resources on fields related to keywords“emerging countries” and “3Es (Environment, Ecology& Energy)”1) Initiatives for Automobile Segment
2) Initiatives for Materials Handling Equipment Segment

Automobile Market Trends and TICO Initiatives

Automobile Segment

1． <By region> Global passenger car market（million units）

6050Other40

Unit sales increases inemerging countries centeredon China

China30Europe2010North America
Japan0070809101112131415 （CY）

2． <By power> Global passenger car market

HV, PHV and EV increases（million units）

60

PHV, EV
HV
CNG, etc.
Dieselpowered car

50403020Gasolinepowered car

1000708091011121314Source: Company estimate based on data ofNomura Research Institute

Sales expansion of car airconditioning compressors
in China market in which
growth is expected

Product development inline with the keyword 3Es• Expanding product lineup of electric
car air-conditioning compressors• PHV/EV-related business development• Commercialization of lightweighttechnology (plastic glazing)

15 （CY）

6 /23

Sales Expansion of Car Air-Conditioning
Compressors in China
1．Targeted market share in China

Automobile Segment

2．Targeted automobile segments
Expand sales
aimed at upper
segment models

Automobile market in China（million units）

20

2009

2015
Aim for one-thirdof market share in
expanding China
market15High-end

10

Mid-range

5

Low-end0

Source: Company estimate

0809

10

15 （CY）

Source: Company estimate

3．Sales expansion strategy for upper segment models

STEP 1: Expand sales for high-end models by leveraging
our advanced technologies- Enhance technical sales promotion of high value-added models

STEP 2: Introduce products which meet market needs
in terms of functionality and cost to mid-range market- Increase local procurement ratio- Increase production efficiency- Shift to local production- Enhance technical support , etc.
7 /23

Strengthening of Environmental Technologies
in Line with Keyword “3Es”

Automobile Segment

Promote technology development company-wide based on 3Es•Electronic components for air jet looms, etc.
•Electric lift trucks•Hybrid lift trucks•Key components, etc.

Materials Handling
Equipment

Textile Machinery

Car Electronics
3Es（Environment, Ecology & Energy）•For PHV and EV(cooling device, etc.)

Jan. 2010 : Organized Electric Power Train Promotion Project

Car Air-Conditioning
Compressor
Vehicle•DC-DC converters for HV•DC-AC inverters•Components for PCU

Engine•Diesel engines•Engines for hybrid lift trucks, etc.
•Plastic glazing•CFRP (Carbon Fiber Reinforced Plastics), etc.

-Onboard chargers-Charging infrastructure, etc.
•Electric compressors•Next-generation compressors•Compressors compliant with European
refrigerant guidelines•New products utilizing core compressor
technologies, etc.
HV: Hybrid Vehicle
PHV: Plug-in Hybrid Vehicle
EV: Electric Vehicle

8 /23

Expanding Product Lineup of
Electric Car Air-Conditioning Compressors

Automobile Segment•Cooperation with Toyota Motor and Denso•Cooperation of Car Air-Conditioning Compressor and Car Electronics divisions→ Development of small, lightweight and high-efficiency products
1．Cover all Toyota HV models
2．Gradually expand sales by supplying compressors for HVs of European
and North American automakers
3．Steadily implement sales expansion plans for EVs

Capture growing HV, PHV and EV markets
For EVs
For HVs of European andNorth American automakers
ES18 for Prius

ES34 for Lexus LS600h

ES14 for Prius
DaimlerHarrier HV

Camry HV

Kluger HV

0305

Lexus
GS450hEstima HVBMWFor Toyota HVs
SAI

Crown HV
Lexus HS250h

09（CY）

9 /23

Automobile Segment

PHV/EV-Related Business Development
1996〜

Equipped in Toyota PHV

Onboard charger
Charging infrastructure

2009〜

Aim
Aim forfor sales
sales expansion
expansion
ofof onboard
onboard charger
chargerbyby making
making smaller
smaller
withwith higher
higher efficiencyefficiency
Onboard charger
Participating in demonstration experiments
promoted by public agencies

ExpandExpand rolerole via
viasmart
smart grid
grid integration
integration

EV charger

Wind power generation(RAV4EV, etc.)
station withCharging Charging
telecommunication
stationcapability

Solar charging
stationDevelopment of charging equipment
for PHVs and Evs andusage management systems

Solar power generation

Telecommunications
８０％FC

10 /23

Commercialization of Lightweight Technologies
TICO lightweight technologies fitted in Lexus LFA＜Plastic glazing＞ ＜3D carbon fiber
reinforced plastic (CFRP)＞
Quarter window
Crumple zone*

Automobile Segment

Commercialization of plastic glazing
1．Features of plastic glazing1) Contribute to greater fuelefficiency via lighter vehicle bodies
2) Able to propose revolutionary newvehicle exterior concepts by
optimizing flexibility in styling
2．Advantages of our products

Lexus LFA

1) Increased durability2) Established enlarging technology＜Plastic glazing＞
Partition

Commercialization as
panoramic roof

＜Carbon fiber reinforcedplastic(CFRP)＞ Entire floor**These CFRP parts have been jointly developed by Toyota Motor Corporation and Toyota Industries

11 /23

III. Our Business Initiatives
1．Recovery of lift truck market and TICO measures
2．Focus resources on fields related to keywords“emerging countries” and “3Es (Environment, Ecology& Energy)”1) Initiatives for Automobile Segment
2) Initiatives for Materials Handling Equipment Segment

Lift Truck Market Trends and TICO Initiatives

Materials Handling
Equipment Segment

1． <By region> Sales composition (%)
100%

Market expansion inemerging countries

Other
80%

China
60%

Europe40%

North America
20%• Introduce new productsfor China market• Expand sales networksJapan0%
0506

0708

09

1011 （CY）

2． <By power> Sales composition (%)
100%

80%

Internalcombustion
lift truck

Increase percentage of electric
lift truck sales

60%• Bolster environmental
technologies centeredon electric technology

40%Electric lifttruck

20%
0%
0506

0708

09

Source: Company estimate

1011 （CY）

12 /23

Introduce New Products for China Market
1．Chinese lift truck market

Materials Handling
Equipment Segment

2．Targeted market share in China• Expect steady market growth（thousand units）

140

2009120

2014
Source: Company estimate

100

3．Introducing new model for Chinawithin this year

8060402000506

0708091011 （CY）

Source: Company estimate• Competitively priced by drasticallyreviewing functions andspecifications• Quality differentiation from locallymade lift trucks• Local production• Enhancement of sales force
by expanding sales network
13 /23

Bolster Environmental Technologies
Centered on Electric Technology

Materials Handling
Equipment Segment

Emphasis on product development

Compact & mid-size: Electric lift trucks
Mid- to large-size: HV lift trucks
1．Enhance the performance of key components ofelectric lift trucks
Maximize product appeal of electric lift trucks through improving
basic performance such as increasing operating time by furtherenhancing the functions of motor and controller, etc.

2．Further improve internal-combustion HV lift trucks
Expand mid- and large-size product lineup whilefurther improving driving and loading
performance

3．Comply with emissions regulations
Develop engines which comply with stricter emissions regulations
in respective countries
14 /23

IV. Financial Results

Financial Results (FY2010)（Billion yen）
09/3

10/3

ChangeNet sales

1,584.2

1,377.7▲206.5 ▲ 13.0%

Operating
Income▲6.6

22.0＋ 28.6

Ordinary
Income14.3

31.7＋ 17.4 ＋121.4%

Net
Income▲32.7▲26.2＋ 6.5

Change(%)−−15 /23

Net Sales by Segment (FY2010)(Billion yen)

09/3
1,584.2

1,000

800

755.9 778.3

400.0

639.6

378.1

Engine10/3
1,377.7

Compressor

398.7

300.0

600

156.6 165.0

200.0（▲208.0）

431.6
400

186.3 177.0

100.0
0.0

09/3 10/3（▲6.3）

2000Vehicle(Billion yen)
500.0(＋22.4）( ▲206.5)

114.8 108.5（▲8.7）（▲5.9 ）

29.5 20.8

44.2 38.3

TextileMachinery

Others

09/3 10/3Automobile

Materials
Handling
Equipment

Logistics

16 /23

Operating Income by Segment (FY2010)(Billion yen)50

09/3
▲6.6( ＋28.6)

10/3
22.04030(＋35.1）

23.6

20（＋2.3）10

3.7

2.9（＋3.9）

5.2

3.90

▲ 2.0 ▲ 1.8-10▲ 11.5-20

09/3 10/3
Automobile▲ 0.0（＋0.2）▲ 9.5（▲13.2）
Materials
Handling
Equipment

Logistics

TextileMachinery

Others17 /23

Change in Ordinary Income (FY2010)

Year-on-year Comparison (FY09 and FY10)+ 29.4▲59.0(YoY + 17.4 billion yen)
+ 10.5

31.7Non-operating
income decrease

→→

FY10
93yen
131yen▲11.2
Exchange Rates

Cost reduction

09/3

USDEUR

FY09
101yen143yen▲3.8
Sales volume decrease

14.3

Labor cost decrease(Billion yen)

Depreciation
decrease+ 23.0Raw material costdecrease+ 14.5

Expenses and others decrease+ 14.010/3

18 /23

Earnings Forecast (FY2011)（Billion yen）
10/3

11/3(Forecast)

ChangeChange(%)＋ 22.3＋ 1.6%Net sales

1,377.7

1,400.0

Operating
Income22.0

45.0＋ 23.0 ＋104.5%

Ordinary
Income31.7

50.0＋ 18.3 ＋ 57.4%

Net
Income▲26.2

27.0＋ 53.2

−19 /23

Net Sales by Segment (FY2011 Forecasts)(Billion yen)

10/3
1,377.7

1,000800

Vehicle(Billion yen)
500.0

778.3 （▲33.3）
745.0

400.0

( ＋22.3)

Engine11/3
1,400.0

Compressor

398.7
335.0

300.0

600

(＋38.4）431.6 470.0

100.0
0.0

400

10/3 11/3Forecast（＋6.5）

2000

165.0 170.0 177.0 187.0

200.0

108.5 115.0（＋9.2）（＋1.7 ）

20.8 30.0

38.3 40.0

TextileMachinery

Others

10/3 11/3 Forecast
Automobile

Materials
Handling
Equipment

Logistics

20 /23

Change in Ordinary Income (FY2011 Forecasts)

Year-on-year Comparison (FY10 and FY11)+ 8.2▲6.0+ 10.0

▲1.7

▲4.750.0
Non-operating income decrease

Expenses and others increase→→

FY1190yen
125yenExchange Rates

USDEURFY1093yen
131yenLabor cost increase

Cost reduction

10/3

Sales volume increase

31.7

▲1.5

Raw material cost increase

Depreciation decrease+ 19.0(Billion yen)

(YoY + 18.3 billion yen)

▲5.0

11/3
Forecast

21 /23

Capital Expenditures and Depreciation(Billion yen)
140.0

129.0

120.0

104.2

80.0

87.2

83.7
74.440.0
20.0
0.0

08/3

07/3

09/3

73.2

65.0

Depreciation

60.0

Capital expenditure

100.0

104.4

26.9

40.0

11/3Forecast

10/3(Billion yen)
30.0

28.4

Breakdown of capital expenditures
23.4

21.5

21.1
20.0

10.5
10.0

7.0
3.6

4.2

0.0
09/3 10/3 11/3Forecast
Compressor
Vehicle/Engine

5.4

7.5

Materials
Handling
Equipment

10.0

9.7 10.0
4.0 5.0

Foundry/
Electronics

Others22 /23Cash Dividends

6050
32

38
28

40
1007/308/309/3

10Interim

06/3

2230

20Year-end

1828

Dividends per share2030 yen10/3

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. All
suchprojections

andforward-looking

statements

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.