FY2009 Financial Results

April 28, 2009

I. Financial Summary

Financial Results (FY2009)（Billion yen）
08/3

09/3

ChangeNet sales

2,000.5

1,584.2▲416.3 ▲20.8%

Operating
Income96.8▲6.6▲103.4

Ordinary
Income

126.4

14.3

▲112.1 ▲88.7%

Net
Income

80.4

▲32.7

▲113.1

Change(%)−−
1 / 20Earnings Forecast (FY2010)（Billion yen）
09/3

10/3(Forecast)

ChangeChange(%)▲284.2 ▲17.9%

Net sales

1,584.2

1,300.0

Operating
Income▲6.6▲10.0▲3.4−

Ordinary
Income14.3▲20.0▲34.3−Net
Income▲32.7▲16.0＋16.7−2 / 20

Actions for Earnings Recovery in FY2010
 Aim to compensate for significant drop in earnings due to market
downturn by improving profit structure through downsizing of company
structure, as well as via various activities to increase sales
09/3

Year-on-year Comparison (FY09 and FY10)

Compensate
Compensate forfor significant
significant
drop
drop inin earnings
earnings byby
lowering
lowering thethe break-evenbreak-evenpoint
point throughthrough downsizing
downsizing ofofcompany
structurecompany structure▲6.6(Billion yen)

▲10.0
+ 8.5+ 33.4+ 38.0
Labor cost

ExchangeRates

Sales volumeDecrease▲3.5

Depreciation▲94.0

Cost reduction andExpenses and others decrease+ 14.2

Raw material cost

Operating Income

10/3
Forecast(YoY ▲ 3.4 billion yen)

3 / 20II. Downsizing of Structure

Actions in FY2009 and Plans for FY2010
FY09 Activities for Earnings Recovery
08/6

08/10

09/1

★Emergency★State of emergency
all managers meeting

Emergency
EmergencyEarnings
Earnings
RecoveryRecoveryCommittee
Committee

Workforce Adjustment Committee○Thoroughpersonnel and time
management

Reduce temporary staffs

 Rationale for Actions“Promote earnings, restrict expenses”

・Top management to take the lead
・Change all employees’ mindset

Eliminate overtime○Review of investments
Suspension of new investments(Capital Expenditures Council）

Cut costs by 15%

Zero-based budgeting

Start at an early stage

Result of activities for earnings
recovery: approx. 15 billion yen

FY2010 President’s Guidelines
Build strongly profitable organization
by lowering break-even point throughdownsizing of bloated structure•Further enhance earnings recovery
activities•All departments, divisions and Group
companies to incorporate in FY10
policies/business plans and follow up•Downsize company structure→LaborLaborCosts
Costs

Facilities
Facilities

Expenses
Expenses

4 / 20Initiatives for “Labor Costs”
Forecast Results：38 billion yen
1. Change of Work Hour and Other Conditions■Changing production systeme.g., change 2-shift work to 1-shift■Stopping production lines■Zero-base review of overtime work

2. Workforce adjustment■Temporary staffs (Non-consolidated)
08/3 4,200 → 09/3 1,000 → 09/6 less than 100■Employees of group companies

・Reduction of temporary staffs
・Voluntary retirement based on considerationof labor practices in each foreign country

FY09 34,800 persons→ FY10 32,200 persons (average)

3. Review of unit price of labor costs■ Forego board members’ bonuses and reduce board
members’ compensation and employees’ bonuses■Provide guidelines of FY10 labor costs to consolidated
subsidiaries in Japan and overseas
5 / 20Initiatives for “Facilities”
Forecast Results：14.2 billion yen
1. Reducing Capital Investments (60% decrease from previous period)
Impact on FY10
■FY09 104.4 billion yen→FY10 40.0 billion yen
capital expenditures
zStrengthening of production capacity → Zero-based▲7.2 billion yen
zDeveloping new products→ Making judgments on case-by-case basis(Billion yen)

140

130.1

129.0

120

104.2

64.4

80

83.7

74.4

40
200
06/3

07/3

08/3

09/3

87.2
73.0

Depreciation

60

Capital Expenditures

100

104.4

Reducing
Reducing capital
capitalexpenditures
expenditures toto approx.
approx.
half
half ofof depreciation
depreciation

40.0

10/3 Forecast

2. Impairment of Facilities, etc. (09/3)■Impairment loss on fixed assets following production decreases■Impairment loss following partial production stoppage ofelectronic components

Impact on FY10
capital expenditures

3. Disposition of Unused Facilities (09/3)▲7.0 billion yen■Production facilities of engines, car air-conditioning
compressors and materials handling equipment, etc.

6 / 20Initiatives for “Expenses”
1. Cost Reduction■ Zero-base review of budgeting（08/4）-15％→（08/10）Zero-base・・In-house manufacturing of facilities
・Major reduction of advertising expenditures
・Review of electricity and gas contracts
tailored to operational status
・Freeze on new purchases of PCs(reuse of idle machinery)・Downgrade airplane seating
・Prohibit use of first-class car of Shinkansen
・Review of company-provided mobile phones
・Temporary closure of company-owned
recreation facilities etc.

・・・・・Vehicle
Car Air-Conditioning Compressor
Material Handling Equipment■Project for promoting reduction of indirect material costs

such as cutting tools, grease, etc.
7 / 20III. Future Sales Expansion

Expanding Sales
Short-term Sales Expansion

Mid-/Long-term Sales Expansion

New Models, Sales Promotion

Environment-related R&DAutomobile•Sales promotion of equipment
for New Prius(e.g., electrically driven

Electrically driven
compressor

compressor, condenser, PCU case)•New mass production of gasoline engine•Sales promotion by top management

Materials Handling Textile
Equipment
Machinery•Strategic sales campaigns with
distributors and dealers targetingrobust industries•Increase lineup of electrically driven
compressors•New products utilizing coretechnologies of compressor•Commercialize plastic glazing•Sales promotion of general-purpose
engines•Expand role in development of HV,PHV and EV•Standardization and sales
promotion of key components•Improve performance of electric
lift trucks•Execute friend
introduction campaign
GENEO•Development of new air-jet loomwith greater energy savings and speed•Sales activities focusing
on the timing of recoveryof Chinese market
Air-Jet Loom

•Improve spinning quality ofring spinning frame

8 / 20IV. Human Resources Development

Approach to Human Resources Development
Basic StanceBased on “Spirit of Harmony,”enhance workplace strengths
together with “Specialized Skills”
and “Management Skills”

Company awareness of issues for younger generations

・Decline of basic academic abilities
・Virtual-oriented knowledge due to IT progressTraining provided by company

Efforts to raise Specialized Skills
ManagementSkills

SpecializedSkills“TPS, QC, etc.”

WorkplaceStrengths“Specializedtechnology, Skills”“Leadership,Spirit of continuous improvement”

Technical Learning Center•Nurture moral character, acquire basic
knowledge•Incorporate training applying concept thatspecialized technology and skills are closely
connected•Raise overall capabilities, nurture experts

Spirit of Harmony“Teamwork,Enriched humanity”

9 / 20Technical Learning Center“First Step” for New Engineers
For first three months after joining the company,
thoroughly train new engineers on the basics ofmanufacturing from various angles with materials
using the company’s products

・Various programs for hands-on learning via“Listen,” “Observe” and “Touch”(Training on importance of “Go to the source” or “Genchi-Gembutsu”)

・Original texts for 36 programs using
company’s products and technologies

・Organically linked programs(Using same components in programs ofMaterials => Drawing => Measuring Equipment)

・Imbue Sakichi Toyoda’s spirit ofmanufacturing through disassembly andassembly of the model of G-type automatic loom
(Simple mechanism, TPS rationale, etc.)

Nurture Shop-floor Associates with
High-Level Specialized Skills

Continuously nurture Top Guns withworld-class manufacturing skills
・“Moral Character, Skills and Knowledge”
serve as three pillars of training at TechnicalTraining School・Nurture Top Guns of future shop-floor leaders
by continuous training from basic skills =>specialized skills => advanced skills(production engineering, maintenance)<Previous Achievements>*Nov ’07: World’s best at International Skills Festival*Feb ’08: Three individuals became Japan’s bestat National Skills Competition, allcontestants received award*Oct ’08: Japan’s best at National Skills Competition,
all contestants received award

International Skills Festival
Practical training in welding

G-Type Automatic Loom

10 / 20

Global Training CenterNurture Human Resources capable of ensuring
the company’s sustainable growthin harsh business environment
Encompassing Group’s management and employees worldwide:Spread and share management philosophy throughout Group

Raise ability of management strategic planning and problem solving skills
taking a mid- to long-term, global perspective
Develop self-motivated people who take the initiative to “learn,” “think” and “act”

Encourage the development of a dynamic workplace atmosphere and Groupsolidarity through round-table communication

Location: Hazu-cho, Aichi

Communication Space

11 / 20

V. Financial Results

Financial Results (FY2009)（Billion yen）
08/3

09/3

ChangeNet sales

2,000.5

1,584.2▲416.3 ▲20.8%

Operating
Income96.8▲6.6▲103.4

Ordinary
Income

126.4

14.3

▲112.1 ▲88.7%

Net
Income

80.4

▲32.7

▲113.1

Change(%)−−
12 / 20

Net Sales by Segment (FY2009)(Billion yen)
1,000

( ▲416.3)
08/3
2,000.5

969.2(▲213.3）

755.9800

Vehicle600

783.1（▲143.5）

639.6
600

500

Engine500.1

09/3
1,584.2

Compressor

378.1

400

253.5

300

178.7

200

156.6

186.3

1000

400

08/3 09/3（▲2.7）

200

0117.5 114.8

08/3（▲36.7）（▲20.0 ）66.2 29.5

64.2 44.2

TextileMachinery

Others

09/3

Automobile

Materials
Handling
Equipment

Logistics

13 / 20

Operating Income by Segment (FY2009)(Billion yen)

08/3
96.8

50

41.5

(▲103.4)

09/3
▲6.6

39.8

40
30
20（▲36.1）10(▲53.0）

3.7

4.2

（▲1.3）

2.9

4.2 （▲6.2）0▲ 2.0-10-206.7（▲6.7）▲ 0.0▲ 11.508/3

09/3

Automobile

Materials
Handling
Equipment

Logistics

TextileMachinery

Others

14 / 20

Change in Ordinary Income (FY2009)
Year-on-year Comparison (FY08 and FY09)(Billion yen)+ 23.5▲99.0(YoY ▲ 112.1 billion yen)

▲3.7

▲3.5

Labor cost

Depreciation

FY09
101yen143yen▲8.4
Exchange Rates→→

Sales volume Decrease

FY08
114yen162yenRaw material cost

Cost reduction
USDEUR

▲8.7

▲13.5

Non-operating income decrease

Expenses and others decrease

126.4

08/3

+ 1.2

14.309/315 / 20

Changes in Sales Units
 Sales units decrease every quarter due to market downturn（ThousandUnits）
90（ThousandUnits）
140

Vehicle80（ThousandUnits）
6,000

Engine

120

5,000

70
10060
5080

4060

Car Air-Conditioning
Compressor

4,000
3,000

30

2,000

40

20
1,000

20

1000
1Q

2Q

3Q

01Q

4Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

(Quarterly sales units )（ThousandUnits）
60

Materials Handling
Equipment（Units）
3,000

50

2,500

40

2,000

30

1,500

20

1,000

10500

001Q

2Q

3Q

4Q

Air Jet Loom

1Q

2Q

3Q

4Q

16 / 20Earnings Forecast (FY2010)（Billion yen）
09/3

10/3(Forecast)

ChangeChange(%)▲284.2 ▲17.9%

Net sales

1,584.2

1,300.0

Operating
Income▲6.6▲10.0▲3.4−

Ordinary
Income

14.3

▲20.0

▲34.3

−

Net
Income

▲32.7

▲16.0

＋16.7

−
17 / 20

Net Sales by Segment (FY2010 Forecasts)( ▲284.2)
09/3
1,584.2(Billion yen)
1,000

Vehicle

800

400

755.9

Compressor

335.0(▲100.9）

655.0

300

639.6
（▲159.6）

600

480.0

200

156.6

186.3
135.0

155.0

1000

400

09/3 10/3（+0.2）

2000Engine

378.1

10/31,300.0

114.8 115.0（▲9.5）（▲14.2 ）29.5 20.0

44.2 30.0

TextileMachinery

Others

09/3 10/3Forecast
Automobile

Materials
Handling
Equipment

Logistics

18 / 20

Capital Expenditures and Depreciation(Billion yen)
140

130.1

129.0

120

104.2

80

83.7
74.4
64.4

60
40
20

87.2
73.0

Depreciation

Capital expenditure

100

104.4

40.0

007/3

06/3

08/3

10/3Forecast

09/3(Billion yen)
4030

Breakdown of capital expenditures
30.5

27.9

20

15.5
11.7

10

28.4

23.4

21.5

21.1

30.3

8.5

4.0

008/3 09/3 10/3Forecast
CompressorVehicle/Engine

10.0
6.0

Materials
Handling
Equipment

3.8

6.0

Foundry/
Electronics

Others19 / 20

Cash Dividends
60503840 yen

32

191305/3

1806/32207/32808/3

Dividends per share

20

1030

Interim28

Year-end

32

09/3

20 / 20

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

arebased

onmanagement’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.