Toyota Industries Report 2014

Business Activities

Materials Handling EquipmentP

26 − 31

AutomobileP

32 − 37P

38− 39Vehicle / Engine / Car Air-Conditioning Compressor / Car Electronics

Logistics
Textile Machinery

P

40

25

Corporate Social
Responsibility

Business Activities

Environmental Initiatives

Financial Section /Corporate Information

Materials Handling Equipment

Materials Handling Equipment
As a market leader with extensive knowledge of global logistics needs, Toyota Industries provides
a range of advanced materials handling equipment, including lift trucks, and outstanding logistics
solutions to customers worldwide.

Business Overview in Fiscal 2014

Toyota Material Handling Group (TMHG)

In the materials handling equipment market, sales remained
strong in Japan and expanded overseas, reflecting growthin China and North America and a recovery in Europe.
Based on the conditions of respective markets, Toyota
Industries augmented its production and sales structuresand launched new products. At the same time, we
undertook efforts to expand our business domain. As one
example, we made U.S.-based Cascade Corporation, amanufacturer and distributor of lift truck attachments, into
Toyota Industries’ consolidated subsidiary in March 2013.
As a result, unit sales for fiscal 2014 increased 14,000 units,
or 7%, to a total of 199,000 units over the previous fiscal
year. Net sales rose ¥212.8 billion, or 36%, to ¥809.2 billion.

As a market leader with extensive knowledge of logistics
needs across the world, Toyota Industries provides a fullrange of lift trucks and other materials handling equipment
as well as logistics solutions to customers worldwide.
Under the TMHG management structure, we engage inbusiness under the TOYOTA, BT, RAYMOND and CESAB
brands. Mutually utilizing the sales and development
strengths of each brand, TMHG is promoting businessexpansion on a global scale.

Business Activities in Fiscal 2014n Materials Handling Equipment Sales

With the global economy continuing to recover moderately,
the lift truck market in 2013 posted a mild increase in salesin Japan, Europe and some emerging countries while
showing drastic year-on-year growth in North America andChina. In Japan, an upturn in corporate earnings pushed up
capital investment, and we proactively implemented various
sales expansion activities. In North America, we reinforced
our ability to accept large orders covering expansive
geographical areas by leveraging the appeal of the TOYOTA
and RAYMOND brands. We also focused on expanding
sales in Europe primarily through the enhancement of oursales networks in Russia and other countries. Our efforts inemerging countries involved boosting our capabilities both in(Thousand units)
200

150

100

50

0

(FY)

10

11

12

13

14

n Toyota Material Handling Group Organization and Brands
North America

Top: Region

TMHE

TMHNA

Middle: Organization

Toyota Material Handling
EuropeToyota Material HandlingNorth America

EuropeTOYOTABT
CESAB
ALOMA*

TMHI
Toyota Material HandlingInternational

TOYOTABTRAYMOND

TMHE
TMHCN
TMHI
TMHI

TMHNA

TOYOTARAYMOND

TMHJ
Japan

China

TMHJ

TMHCN

Toyota Material HandlingJapan

TOYOTA

Bottom: Brand

TMHI

Toyota Material Handling
China

TOYOTABTRAYMOND* ALOMA stands for Asia, Latin America, Oceania, Middle East and Africa.

26

Toyota Industries Report 2014

terms of manufacturing and sales. We strived to enhance
our sales structures and accelerated sales promotion
activities in China and India, while commencing operations
at a new lift truck production plant in Brazil. We also set up
bases to provide financing services in Mexico and France.
Integrating these services into the existing sales and aftersales services structures, we now have a comprehensive
system in both countries to satisfy the needs of ourcustomers throughout the product lifecycle, from purchaseof products to maintenance and replacement.
As for the Materials Handling Engineering Business,
which is represented by automated storage and retrieval
systems and automatic guided vehicles (AGVs), we worked
to meet a wide range of needs by providing consulting
services for customers’ logistics-related issues as well as
assisting them with installation and operation of equipment
and promoted sales in the mail order, health care,pharmaceutical and other industries that are performing
well. In response to the growing need for greater efficiency
in the handling of shipping containers spurred by a rise inport logistics volume, we are aiming for sales expansion of
AGV systems for cargo containers based on a pool oftechnologies we haveaccumulated in the field of
AGVs over the years.
In the field of aerial work
platforms, demand fell in theelectric power industry, ourprincipal customer in Japan,
as power companies cut backon capital investment. In theleasing and railway industries,
however, demand grew in linewith various factors, such as
an upturn in capital
investment in the leasing
industry and increasing
demand for mechanization ofwork processes in the railway
industry. Accordingly, Aichi
Corporation, which possesses
the top brand of aerial work
platforms in Japan, posted
higher sales. Aggressive sales
promotion activities also led
to a rise in sales outside
Japan. On the whole, sales
exceeded the previous fiscal
year’s level.
Aichi Corporation’s aerial work platform

Japanese Market
New Record High for No. 1 Market Share*1
in Lift Truck Sales
In 2013, the Japanese lift truck market expanded
moderately. Toyota Material Handling Japan (TMHJ) sought
to increase sales in the manufacturing industry, in which
there has been an upswing in capital investment, primarily
for transportation equipment. In such steadily performing
industries as warehousing, TMHJ proactively promoted
sales of the GENEO-R and High Pick Lift electric lift trucks
released in 2012. As a result, unit sales in fiscal 2014
increased 11% year-on-year to 37,000 units. TMHJ
achieved a record-high share of 46.6% in the Japanesemarket, topping the previous year’s record for the second
consecutive year in 2013, and maintained its top position*1
for the 48th consecutive year.
*1: Surveys by Japan Industrial Vehicles Association and Toyota Industries Corporation,
2013

GENEO-R

High Pick Lift

Container Transport AGV System Receiving
Design Awards in Asia
In December 2013, Toyota Industries’ container transport
AGV system was a dual winner of the Design for Asia Award
2013*2, receiving the DFA Grand Award and the DFA
Special Award for Technology.
This AGV system comprises AGVs, which carrycontainers between container berths and storage yards, andsoftware programs that control the scheduling of these
AGVs. The system went into operation in April 2012 at acontainer terminal operated by Tobishima Container BerthCo., Ltd. within the Port of Nagoya.
*2: An international award program sponsored by the Hong Kong Design Centre torecognize the most influential and outstanding designs within Asia. Held every year
since 2003.

27

Corporate Social
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Financial Section /Corporate Information

Materials Handling Equipment

These two awards were given to the AGV system inrecognition of its contribution in greatly improving theoperational efficiency of cargo handling at seaports as wellas its futuristic design.

North American Market
Maintaining Top Market Share*

Able to be simply installed on any lift truck, iMonitor is a
Raymond-manufactured fleet management product that
also features the daily operator checklist, vehicle access
control and impact detection. Raymond upgraded theiWarehouse user interface in other areas as well to take theentire system to a higher level.

The North American lift truck market expanded in 2013 on
the back of a strong economy. Toyota Material HandlingNorth America (TMHNA) remained the market share leader*in fiscal 2014 with combined unit sales of TOYOTA andRAYMOND brands of approximately 67,000 units, up 14%.
Toyota, as a full-line supplier of lift trucks, remained themarket share leader* for the 12th consecutive year, andRaymond continued to hold its number one* market shareposition in narrow aisle electric lift trucks.

Aiming for Industry-Leading ProductOfferings and Customer-Oriented
Solutions
The North American market is expected to show continued
growth in 2014. TMHNA will continue to explore ways toenhance synergies by maximizing the strengths of the
TOYOTA and RAYMOND brands. Through leading products
and innovative solutions, TMHNA aims to offer energy
efficiency and customer productivity benefits, thereby
maintaining its leadership position in North America.

* Survey by Crist Information & Research, LLC, 2013

Container transport AGV system

Proactively Launching New Products

the lift truck production plant in Brazil that started operationsin October 2013, providing instructions in such areas asproduction and quality management. TIEM also exports
components for the Brazilian plant, progressively increasing
its importance within the Toyota Industries Group’s global lift
truck production structure.

iMonitor fleet management device

European Market
Initiative to Achieve Greater Customer
Satisfaction
In November 2013, TMHJ held the 2nd TMHJ Service Skills
Contest, in which a service representative from the 40
dealers across Japan participated. The aim of this contest is
to enhance dealer service to ensure that our products arealways used by customers in the best possible condition.
In addition to offering a broad product lineup, TMHJ willcontinue to contribute to improvement of customers’
logistics efficiency by providing meticulous services and arange of logistics solutions.

Toyota expanded its product offering in fiscal 2014 with the
3.5- to 8.0-ton capacity 8-Series lift trucks powered by new
Toyota designed and built engines. Thanks to newengineering design advancements in engines, TOYOTA’s
8-Series lift trucks feature downsized displacement andprovide the same or greater horsepower and torquecompared with previous models, while achieving greater fuelsavings and fewer emissions. (See Special Feature 1 on
pages 16–19 for details.)
In fiscal 2014, iMonitor was introduced to further support
the iWarehouse fleet management system by Raymond.

Strengthening Production and Sales
Structures
In November 2013, Toyota Material Handling, U.S.A., Inc.
(TMHU), a sales base for TOYOTA-brand products in North
America, relocated its head office from California to a site
adjacent to Toyota Industrial Equipment Mfg., Inc. (TIEM),
a production base located in Indiana.

Increasing Unit Sales by Leveraging
Market Recovery
Sales units in the lift truck market in 2013 were on par withthe previous year as European economies turned the corneron a recession and started to return to positive growth.
Amid these conditions, Toyota Material Handling Europe(TMHE) engaged in sales expansion activities and worked tostrengthen services. As a result, TMHE posted sales of
59,000 units, up 1%.

Enhancing Product Offering

Opening ceremony for TMHU’s new head office

Placing the production and sales bases in close
proximity will enable a quick and accurate response tocustomer needs through an integrated chain of processes
from development and production to sales and after-sales
services.
Since commencing operations in 1990, TIEM has been
continuously and efficiently producing high-quality lift trucks.
In addition, it plays an important role as a mother plant for
Service Skills Contest

28

Toyota Industries Report 2014

In addition to the conventional torque convertertransmission, TMHE introduced a hydrostatic transmission
as an option on the Toyota Tonero internal-combustion lift
truck. The hydrostatic transmission supports agile materials
handling and ensures a responsive engine brake. The Toyota
Tonero is highly acclaimed for its ease of operation,
durability and reliability.
Following successful field tests with customers that
confirmed the product’s quality and durability, TMHE
released a broad range of lithium-ion lift trucks, including
BT Levio electric low lift trucks and BT Optio order pickers.
Equipping the lift trucks with lithium-ion batteries reduces
the frequency of recharging and battery changes, thereby

8-Series internal-combustion lift truck

29

Corporate Social
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Business Activities

Environmental Initiatives

Financial Section /Corporate Information

Materials Handling Equipment

contributing to the improved work efficiency of customers
who operate lift trucks for long hours while at the same timerealizing energy savings.

Reinforcing Production and Sales
Operations in Growing Markets
Brazil is the largest industrial vehicle market in Latin America
and is expected to grow further. In October 2013, the newplant in São Paulo state commenced production of internalcombustion lift trucks, for which there is strong market
demand. In addition to raising the local procurement rate,
TMHI will work to reinforce sales and service structures bytaking such measures as establishing new sales bases inareas where demand for lift trucks is rising.

Responding to Market Expansion

TMHE booth at IMHX 2013

Toyota Tonero

In 2014, demand for lift trucks is expected to steadily
expand in the ALOMA and Chinese markets. TMHI and
TMHCN will work to provide products closely matched to
local market needs, further improve after-sales services andenhance activities to support customers’ logistics
efficiencies.

Further Enhancing Product Appeal andService Quality to Expand Market Sharein Europe
TMHE completed the 1-channel, 2-brand structure*1 of
distributors in primary countries in Europe in its efforts torealize stronger sales and service networks that include a
newly established sales subsidiary in Russia. This structureis designed to expand TMHE’s market share throughenhanced appeal of its products and service quality.
*1: To integrate separately operated sales channels for TOYOTA- and BT-brand lift trucks

response to an expansion of the Chinese market and anincrease in exports to emerging countries, in June 2013 TIK
relocated its plant and augmented its production capacity.
TIK will continue to expand production in China as a crucial
supply base of TOYOTA-brand lift trucks. On the sales side,
Toyota Material Handling (Shanghai) Co., Ltd. (TMHS) is
enhancing the roles of Tianjin, Guangzhou and Dalianbranches in its efforts to further strengthen sales and service
networks in key regions.

Ceremony for completion of first lift truck at the Brazil plant

TOPIC

Lithium-ion lift trucks

The TMHI Distributor Conference held in Nagoya, Japan, in
March 2014 was attended by 78 representatives fromtrading companies and Toyota, BT and Raymond
distributors spanning 35 countries. The conference included
the confirmation of the mid- to long-term vision and specificaction plans, along with a common approach for future
directions. Also on the agenda was the awards ceremony
for the 2013 TMHI Distributor Award Program. During theconference, participants pledged to work harder to achieve
objectives based on the slogan, “Lift Beyond Together.”

ALOMA*2 and Chinese Markets
Proactively Participating in Exhibitions
and Making Appeals to Customers

Increasing Unit Sales through Proactive
Market Development

TMHE proactively attends various exhibitions to pitch its fullline products and excellent servicing capabilities directly tocustomers. In fiscal 2014, TMHE exhibited products andservices at numerous logistics fairs, including CeMAT
Russia, the International Materials Handling Exhibition (IMHX)(UK) and LogiMAT (Germany), as well as inter airport Europe(Germany). At these exhibitions, TMHE appealed its
comprehensive capabilities, including a wide range of
products, tailor-made service system and logistics solutions.

Toyota Material Handling International (TMHI) covers the
ALOMA*2 markets of Asia, Latin America, Oceania, theMiddle East and Africa, while Toyota Material Handling China(TMHCN) covers the Chinese market.
Despite a deceleration in emerging countries, the growthrate still outperformed that of developed countries in 2013.
As a result, TMHI and TMHCN markets remained strong.
Supported by the continuous efforts by both organizations
to develop these markets, annual sales in fiscal 2014
reached 36,000 units, an increase of 3% compared with theprevious fiscal year.
*2: A LOMA is a Toyota Industries term for Asia, Latin America, Oceania, Middle East andAfrica.

Production line at the Brazil plant

In India, TMHI’s continued efforts to strengthen its sales
and service capabilities through Toyota Material HandlingIndia (TMH India) andaugment sales expansion
led to a significant increasein unit sales.
In China, Toyota
Industry (Kunshan) Co.,
Ltd. (TIK) engages in
production of TOYOTAbrand lift trucks. In

TIK’s new plant

30

Toyota Industries Report 2014

TMHI Distributor Conference31Business Activities

Corporate Social
Responsibility

Financial Section /Corporate Information

Environmental Initiatives

Automobile

Automobile
In the fields ranging from vehicle assembly to engines, car air-conditioning compressors and car
electronics, Toyota Industries continues to meet the expectations and trust of its customers.

At the same time, we also undertake activities to expand
our customer base by enhancing the appeal of the Vitz
through our support to motorsports events.

EngineBusiness Overview in Fiscal 2014

VehicleHighest-Level SEQCD to Contribute to
Production of Attractive Toyota Cars

Business Overview in Fiscal 2014
In the automobile industry, the Japanese market returned
to a path to recovery in the latter half of fiscal 2014,
overcoming stagnation in the first half. Overseas, increases
in sales in China and North America served to drive
continued growth in the global market.
In fiscal 2014, unit production increased by 59,000
vehicles, or 22%, from the previous fiscal year to 328,000
vehicles as a result of an increase in sales of the RAV4
despite a decline in sales of the Vitz (Yaris outside Japan).
Net sales were up ¥110.3 billion, or 31%, to ¥467.0 billion.
Ceremony commemorating cumulative unit production of 9 million

In recognition of Toyota Industries’ comprehensive strengths
in vehicle quality, delivery, cost and safety as the highest
among all Toyota-affiliated automobile body manufacturers,
we received from TMC an award for excellence under the
Toyota Quality Control Award program for two consecutive
years. In the face of the shrinking automobile market in
Japan, we are further strengthening our already superior
level of safety, the environment, quality, cost and delivery(SEQCD). We also are working to leverage our ability toquickly start up production and a flexible structure in termsof vehicle models and production volume to contribute toproduction in Japan of Toyota vehicles.

Production volume in fiscal 2014 declined 40,000 units, or
6%, from the previous fiscal year to 626,000 units. This was
attributable mainly to a decrease in production of KD diesel
engines despite an increase in production of AR gasoline
engines. Net sales dropped ¥14.2 billion, or 7%, from theprevious fiscal year to ¥202.5 billion.
n Engine Production(Thousand units)
700

600

500

400

n Vehicle Production

Plastic Glazing Panoramic Roof for thePrius a (Prius v in North America andPrius + in Europe)(Thousand units)
400

Toyota Industries engages in production of a panoramic roof
made of plastic glazing for the Prius a, a hybrid vehicle
marketed by TMC in May 2011. The roof is currently astandard feature of Prius + vehicles marketed in Europe.
This product retains the beautiful surface quality typicalof a glass roof yet is approximately 40%* lighter than its
glass counterpart, improving vehicle fuel efficiency and thus
contributing to the reduction of CO2 emissions. Toyota
Industries will continue to develop attractive new productsthat leverage the distinctive characteristics of plastic glazing.

300

200

100

* Survey by Toyota Industries Corporation
0
(FY)

10

11

12

13

14

Cumulative Unit Production Reaches
9 Million
Since initiating production of the Publica pickup trucks in
1967, we have been undertaking vehicle assembly for 46
years as a production site of compact to midsize
automobiles of Toyota Motor Corporation (TMC). Currently,
we engage in production of the Vitz and RAV4 and achieved
cumulative unit production of 9 million in July 2013.

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Toyota Industries Report 2014

“Our Vitz and RAV4” Initiative forEnhancing Appeal of the Two Car Models
As the sole producer of the Vitz in Japan and with the aim ofturning the vehicle into a long-selling series, Toyota
Industries collaborates with TMC and its dealers to makevarious suggestions under the banner “Make Our Vitz More
Attractive by Ourselves.” Similarly, to boost the appeal of theRAV4, we plan and develop special-edition vehicles that
directly reflect the voice of our customers. Through theseendeavors, we seek ways to create more appealing andsatisfying vehicles for customers worldwide.

300

TOPIC

200

We participated in the 43rd Tokyo Motor Show held in
November 2013 and displayed a concept model of aplatform dedicated for use with electric vehicles (EVs). This
platform ensures greater safety, achieves body weight
reduction and has fewer components through the adoptionof a streamlined structure. We also promoted amultifunctional plastic glazing roof that takes advantage ofthe characteristics of plastic glazing and integrates various
functions. In addition, we exhibited products developed
based on 3Es (Energy, Environmental protection and
Ecological thinking), including car electronics products,
an electric compressor for car air conditioners and aturbocharger for industrial diesel engines, as well as aVitz rally car.

100

0
(FY)

10

11

12

13

14

Toyota Industries’ Diesel Engines Highly
Acclaimed by Customers Worldwide
We started production of engines at the Kariya Plant (Aichi
Prefecture) in April 1953. In June 2013, cumulative
production reached 15 million units.
Toyota Industries’ diesel engines, fitted in a variety of
Toyota vehicles sold around the world, have gained highmarket recognition for their cleaner emissions, greater fuelefficiency and higher performance. KD diesel engines, forwhich production started in 2005, are installed in TMC’s
Innovative International Multi-Purpose Vehicle (IMV) series
and sold mainly in Asia and Latin America. The V-type8-cylinder VD diesel engine, which was developed primarily
by Toyota Industries, is installed in the Land Cruiser selling
particularly well in Australia, Russia and the Middle East.

Toyota Industries’ booth at Tokyo Motor Show 201333

Business Activities

Corporate Social
Responsibility

Financial Section /Corporate Information

Environmental Initiatives

Automobile

Developing Competitive Diesel and Gas/
Gasoline Engines in Non-Automotive Fields

Car Air-Conditioning Compressor

Toyota Industries’ engines are highly renowned for their
excellent environmental performance in non-automotive
fields as well. These engines are used for a wide variety of
applications, including GENEO-HYBRID diesel-poweredinternal-combustion hybrid lift trucks, and adopted by
GHP*1 manufacturers in Japan and CHP*2 manufacturers
worldwide.
In March 2013, we developed the Toyota 1KD, a new
industrial diesel engine equipped with a turbocharger
developed in-house, and the Toyota 1FS, a new gas/
gasoline engine.

Business Overview in Fiscal 2014
Unit sales of car air-conditioning compressors increased
both in and outside Japan, pushing up overall unit sales by
2.06 million units, or 9%, to 25.48 million units. Net salesrose ¥47.6 billion, or 21%, over the previous fiscal year to¥275.7 billion.

(Million units)
30
25
20
15
10
5
0
(FY)

10

11

12

13

14

Toyota 1KD new industrial diesel engine

We further expanded our lineup of industrial engines in
December 2013 with the addition of the Toyota 1ZS also
equipped with an internally developed turbocharger.
These three new engines offer downsized displacementcompared with conventional models with equivalent output,
which results in higher fuel efficiency, cleaner emissions anda reduction in size. (See Special Feature 1 on pages 16–19
for details.)*1: Short for gas heat pump; air conditioner driven by a gas engine*2: Short for combined heat and power; co-generation system

Aiming to Bring Satisfaction toMore Customers
Toyota Industries has been making efforts to achieve shorter
development cycles with improved efficiency. At the sametime, we have been carrying out development of nextgeneration automobile engines that can clear Euro 6 andother stringent emission standards, as well as engines formaterials handling equipment and general purposes,featuring greater fuel efficiency and lower costs.
For our general-purpose engines, we will plan, develop
and produce a lineup of products matched to customers’
needs while actively promoting sales activities.

ESA34 compressor (electric type)6SES14 compressor (variable-displacement type)n Compressor Sales

Development Efforts Based on 3Es(Energy, Environmental Protection and
Ecological Thinking)More stringent fuel efficiency standards have been enforcedin North America, Europe, Japan and China, requiring
automobiles to provide extremely high fuel efficiency
performance.
Against this backdrop, in the field of car air-conditioning
compressors to be fitted in internal-combustion vehicles, theneed for fuel-efficient models is increasingly growing for both
fixed- and variable-displacement type compressors. In North
America, in particular, a shift from a fixed-displacement typeto a variable-displacement type is accelerating.
In response, we concentrated on development of avariable-displacement type compressor with considerably
greater fuel efficiency while also focusing on an optimum
balance between product performance and prices of
products targeting emerging countries.
In the field of variable-displacement type compressors,
we developed the SES series that simultaneously offers
greater fuel efficiency and a reduction in weight, and it has
been adopted by TMC in its latest Corolla, as well as byDaimler AG, General Motors Company and Volkswagen AG.

Since initially being installed in the second-generation
Prius, our electric compressors for hybrid vehicles (HVs) andEVs have been fitted in all of TMC’s HVs from the thirdgeneration Prius to the LS600h.
To offer attractive products to the growing number of
automakers worldwide now actively engaged in thedevelopment of HVs, we developed the ESA series, which iseven more compact and fuel efficient. In addition, a change
in its structure makes it easier to mount on vehicles. The
ESA series has been installed in HVs of Ford Motor
Company, Volkswagen AG and Honda Motor Co., Ltd.
Looking ahead, we will accelerate our efforts to expand
sales to automakers in Japan, the United States and Europe.

Establishing Optimum Global Productionand Supply Structures
In response to growing demand for variable-displacement
type compressors triggered by the anticipated enforcementof more stringent fuel efficiency standards, we areproceeding with augmentation of production capacities ofour production bases in North America. In addition, with theaim of increasing the ratio of local procurement, Toyota
Industries Compressor Parts America, Co. (TICA),a consolidated subsidiary in North America that produces
car air-conditioning compressor parts, commencedn Worldwide Bases of Car Air-Conditioning Compressors (As of March 31, 2014)

TDDK
DNDE

Germany

Germany
DSIT

YST

DICH

MACI

China

China

U.S.A.

DIAM

U.S.A.

Italy

TICO

DNTS

Japan

Italy

TACK

SUBROS

China

India

TACG

U.S.A.
TICA

U.S.A.

TACI

Indonesia

DNBR

BrazilConsolidated production bases

Licensed manufacturers

Technical service stations

Toyota Industries’ car air-conditioning compressors are widely adopted by automakers around the world, garnering the No. 1* position in global sales.
* Survey by Toyota Industries Corporation

34

Toyota Industries Report 201435

Business Activities

Corporate Social
Responsibility

Financial Section /Corporate Information

Environmental Initiatives

Automobile

production of key functional parts in September 2013.
In Europe, the ASEAN countries and China as well, weare expanding production capacities and increasing the ratioof locally procured parts to accommodate growing demandfor car air-conditioning compressors.
In China, in particular, in order to respond to thecountry’s growing automobile market, we established Yantai
Shougang TD Automotive Compressor Co., Ltd. (YST),
a subsidiary engaged in the production of compressors,in Yantai in Shandong province, with production getting
underway in December 2013. In the Kunshan Economic &Technological Development Zone in Jiangsu province, we
also constructed a new plant of TD Automotive Compressor
Kunshan Co., Ltd. (TACK), another subsidiary that produces
compressors, which is slated to go into operation in
October 2014.

Car Electronics

including control software, we are working to increase theadded value as an entire system.

Business Overview in Fiscal 2014

Charging Infrastructure

Net sales of car electronics products grew steadily due
primarily to strong sales of DC-DC converters for the
Toyota Prius, Aqua and other HVs as well as an increase insales of DC-AC inverters.

Expanding Experience and Role inElectric-Powered Vehicle Field
Toyota Industries develops and produces electronic
components and devices for electric-powered vehicles,
including HVs, plug-in hybrid vehicles (PHVs) and EVs. In
addition to TMC, we are pursuing business expansion toother automakers in and outside Japan.

Auxiliary Power Source Devices
Yantai Shougang TD Automotive Compressor Co., Ltd. (YST)

In line with our increasingly globalized production
operations, the Compressor Division established the Global
Training Center of Compressor (GTCC) to maintain andimprove product quality and promote the development of
human resources. GTCC is a place for manufacturingpersonnel of our production bases outside Japan to learn
the spirit of monozukuri (manufacturing) and improve theirskills levels. It also gives Japanese staff who will provide
skills guidance at production bases outside Japan theopportunity to refine their teaching techniques. The centerhas thus far accepted personnel from the United States,
China and Indonesia.

GTCC training

36

Toyota Industries Report 2014

A DC-DC converter converts the high voltage of HV
batteries to a lower voltage level suitable for operating lights,
wipers, horns and other auxiliary devices. In September
2013, we leveraged our technologies accumulated in thefield of DC-DC converters for HVs and successfully
developed a DC-DC converter for use with start-stop
systems, which can suppress a voltage drop at the time ofengine restart. Since being adopted in the first-generation
Prius, we have continuously developed more compact
and lighter weight models, and cumulative production hit
6 million units in October 2013.
A DC-AC inverter is equipped to use home electric
appliances in a vehicle, and has drawn a great deal of publicrecognition for its use as an emergency power source
following the Great East Japan Earthquake. Sincecommencing production in 1995, we have achieved
cumulative production of 12 million units in March 2014.
We have developed an on-board charger based on our
technologies and cultivated know-how regarding EV
chargers developed since the 1990s. The resulting on-board
charger is fitted in the Prius Plug-in Hybrid.
Since 2003, inverters for electric compressors for car air
conditioners have been supplied internally to theCompressor Division, and cumulative production reached
6 million units in March 2014.

DC-DC converter fitted in the Aqua

Core Components for Drive Systems
Since first developing inverters for materials handlingequipment in 1967, we have been making steady efforts torefine our power electronics technologies.
Utilizing such technologies, Toyota Industries applied its
proprietary direct-cooling method to develop a device withsignificantly higher cooling performance in 2009. We haveentered the field of core components for drive systems suchas power control units (PCUs) for the third-generation Prius.
In addition to inverters for drive systems utilizing thisdirect-cooling method, we have developed a powertrain unit
for EVs and other core components. For the powertrain unit
for EVs, we integrated designs of functional components,
such as an inverter, motor and reduction gears, into one
package and successfully reduced the size and weight. By
integrating hardware with an electronic control unit (ECU),

Jointly with Nitto Kogyo
Corporation, we developed
public-use charging stands andhome-use charging units for
PHVs and EVs. These chargers
have been successfully launchedon the market.
Our public-use charging
stands are being installed primarily
in commercial facilities and local
government buildings. We supply
home-use charging units mainly
to Toyota Home and have soldmore than 3,000 units, including
both wall-mounted and polemounted types.

Charging standAccelerating Development Activities toContribute to Low-Carbon Society
Demand for environment-friendly products with high energy
efficiency is expected to increasingly grow, with the trend
toward electrification likely to expand not only for
automobiles but also for non-automotive products such as
materials handling equipment. Enhancement of the charging
infrastructure will also take a greater role in promoting the
spread of PHVs and EVs.
Targeting the high-growth, electric-powered vehicle
market, we will accelerate development of technologies andproducts in the fields of auxiliary power source devices, corecomponents and systems for drive systems and charging
infrastructure, thereby making a significant contribution to
the realization of a low-carbon society.

Powertrain unit for EVs

37

Business Activities

Corporate Social
Responsibility

Environmental Initiatives

Financial Section /Corporate Information

Logistics

Logistics
Toyota Industries offers customers highly advanced, efficient logistics services to respond to their diverse
needs, including consigned operation of distribution centers; land transportation services; cash collection
and delivery and cash proceeds management services; and data storage, management, collection anddelivery services.

Business Overview in Fiscal 2014
Both the logistics services business and the landtransportation services business for automotive parts
increased. As a result, net sales in fiscal 2014 increased¥2.3 billion, or 2%, over the previous fiscal year to¥95.3 billion.

Planning, Design and Operation ofDistribution Centers
Toyota Industries operates distribution centers for various
industries and customers. During fiscal 2014, operation ofexisting distribution centers generated a relatively steadylogistics volume. We continued to promote improvement
activities at logistics sites based on the thinking embodied in
the Toyota Production System (TPS) to enhance the level ofservices to customers and strengthen our profit structure.
With an aim of optimizing the entire supply chain of eachcustomer, we continued our proactive sales activities bymaking proposals that leverage the maximum use of the
Toyota Industries Group’s resources in collaboration with theMaterials Handling Equipment Division. As a result, we
successfully obtained five new orders for the consigned

operation of distribution centers.
Looking ahead, we will continue to facilitate ourproactive sales activities for both increasing orders from ourexisting customers and acquiring new customers inindustries having high growth potential.

Land Transportation Services
The Taikoh Transportation Group provides land transportation
services under consignment from many automotive parts
manufacturers. The group collects finished parts frommanufacturers, compiles them by their destination anddelivers to automakers “what is needed, when it is needed
and in the quantity needed.”
During fiscal 2014, favorable business conditions in
the automobile industry, our principal customer, havegenerated a steady logistics volume in the transportationof automotive parts.
Under these circumstances, we continued our profit
improvement activities by promoting efficient cargo transport
while at the same time aggressively undertaking activities toensure safe and environment-conscious operations.
Aiming to expand business operations, we will continue tofurther reinforce our sales activities to capture new customers.

High Value-Added Services Including Cash
Collection and Delivery and Cash Proceeds
Management and Data Storage,
Management, Collection and Delivery
Cash Collection and Delivery and Cash Proceeds
Management
Asahi Security Co., Ltd. provides cash collection anddelivery and cash proceeds management services
throughout Japan on a 24/7 basis to about 2,700
customers mainly in the retail sector, service industries,
post offices and financial institutions.
In addition to cash collection and delivery services
tailored to each customer’s specific needs, Asahi Security
offers comprehensive services that include managementof gift certificates and accounting operations at
customers’ retail outlets. Furthermore, the company
provides security services integrating the monitoring by
security devices and dispatch of security guards on a
24/7 basis. By providing these comprehensive services,
Asahi Security aims to become a unique, distinctive
company in the primary field of cash collection anddelivery and cash proceeds management services.
Asahi Security operates 19 cash collection anddelivery centers and 10 logistics sites from Hokkaido to
Okinawa Prefecture, thereby setting up a system torespond to customer needs throughout Japan. In fiscal
2014, the company reinforced its service and support
networks by relocating and expanding its Sendai Center.
At each business base, Asahi Security conducts
regular training on its own as well as emergency training
jointly with local police departments in order to provide
safe and trusted services to customers.

Data Storage, Management, Collection and Delivery
Wanbishi Archives Co., Ltd. provides support to about
4,000 companies and organizations, including large
financial institutions and government agencies, to ensure
the security and efficient use of their information assets.
Under its robust security structure, Wanbishi Archives
offers a comprehensive range of services covering theentire lifecycle of critical information assets in electronic,
paper or other forms, from storage and utilization todestruction. These services allow customers to reducerisks, achieve higher business efficiency, and ultimately, tofocus on their core businesses.
In the wake of the Great East Japan Earthquake that
occurred in 2011, there has been an ever increasingawareness toward placing importance on effective
business continuity management (BCM), and Wanbishi
Archives has undertaken various initiatives tailored tosuch needs. As one example, the company established
Tohoku Center 2 in Fukushima Prefecture as its 13th
business base in Japan. We will continue to open andupgrade facilities, equipment and appropriate operational
structures to provide support to customers nationwide.
With the use of so-called big data beginning tobecome more widespread, the volume of data handled bycompanies and organizations has been growing at an
explosive pace. As such, they are now showing arenewed interest in fault-tolerant, cost-effective magnetic
tapes to store their data. Wanbishi Archives is responding
to the need for ensuring the security of their information
assets by adopting various data storage forms andtechnologies.
Outside Japan, Wanbishi Archives’ subsidiary in China
provides services to local companies as well as Japanesecompanies doing business in China. Capitalizing on its
experience and know-how accumulated in Japan,
Wanbishi Archives will accelerate its efforts to capturebusiness opportunities in growth markets.

Asahi Security Co., Ltd.’s cash collection and delivery andcash proceeds management services

Wanbishi Archives Co., Ltd.’s data storage, management,collection and delivery services

Taikoh Transportation Co., Ltd.’s land transportation services

38

Toyota Industries Report 201439

Textile Machinery
Based on the philosophy of founder Sakichi Toyoda, which reflects his strong commitment tomanufacturing, Toyota Industries responds to a broad range of needs with its extensive product lineup,from air-jet looms, for which we enjoy the world-leading market share*1 in unit sales, to spinning frames
and roving frames.
*1: Survey by Toyota Industries Corporation

Business Overview in Fiscal 2014
The textile machinery market remained on its path torecovery with an upswing in capital investment in China
and India backed by an increase in demand in thesecountries. Reflecting such circumstances, we posted
increases in sales of both spinning and weaving machines,
our mainstay products. Unit sales of air-jet looms increased
4,700 units, or 101% year-on-year, to 9,300 units. Net sales
were up ¥33.2 billion, or 83%, over the previous fiscal yearto ¥73.1 billion.

TCO12 comber, which has been on the market since
January 2014. Combining Toyota Industries’ weaving
machinery technology and know-how accumulated over theyears and Truetzschler’s spinning machinery technology andexpertise which have earned high acclaim among customers
worldwide, the new comber provides improved yarn quality
as well as excellent stability during high-speed operation.
*2: Survey by Toyota Industries Corporation

Further Enhancing Product Appeal
As one initiative to create innovative products, we have been
accelerating our R&D activities to integrate the world-classsensor and information processing technologies owned by
Swiss-based Uster Technologies AG, which became aToyota Industries subsidiary in 2012, into our weaving andspinning machinery. By commercializing these technologies
in the future, we intend to achieve higher energy savings
and improved spinning and weaving quality in order toprovide products that are even more satisfying to ourcustomers.

n Air-Jet Loom Sales(Thousand units)
10
8
6
4
2
0
(FY)

10

11

12

13

14

Business Activities in Fiscal 2014
In the field of weaving machinery, we implemented a modelchange for our widely used JAT710 air-jet loom, whichboasts the world-leading market share in unit sales and ishighly recognized by customers for its outstanding
performance and reliability. We commenced production of a
new model, the JAT810, in August 2013. To meet thegrowing need for higher energy efficiency, the JAT810 isequipped with our newly developed weft yarn inserting
system that reduces the amount of air required to carry theweft yarn by 20%*2 compared with the preceding model,
thereby offering unparalleled energy-saving performance. Its
productivity has also been improved with the introduction ofa higher-speed electronic shedding device that enables theweaving of fabrics with complex patterns. (See Special
Feature 2 on pages 20–24 for a related article.)
In the field of spinning machinery, Toyota Industries andTruetzschler GmbH & Co. KG, a German manufacturer ofspinning machinery founded in 1888, co-developed the40

Toyota Industries Report 2014

TOPIC
Toyota Industries displayed and demonstrated our new
JAT810 air-jet loom to show how a towel is made at“The Secret behind the Softness—Towels and Towel
Looms” exhibition held for about two months from
September 28 to November 24, 2013 at the Toyota
Commemorative Museum of Industry and Technology in
Nagoya, Aichi Prefecture. The program was enjoyed byadults and children alike, who learned the history of towels
and their weaving process while actually touching towels
and feeling their soft, fluffy texture.

JAT810 at “Towels and Towel Looms” exhibition(Photo courtesy of the Toyota Commemorative Museum of Industry and Technology)