Toyota Industries Report
Toyota Industries Report 2014

2-1, Toyoda-cho, Kariya-shi, Aichi 448-8671, Japan
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www.toyota-industries.com

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with ink derived from vegetables using a waterless printing process.
Printed in Japan

Year ended March 31, 2014

Corporate Philosophy

Contents(Toyoda Precepts and Basic Philosophy)
Based on the Basic Philosophy that carries on the spirit offounder Sakichi Toyoda, the Toyota Industries Group
contributes to the harmonious and sustainable developmentof society and the Earth.

Founder Sakichi Toyoda

Inside coverCorporate Philosophy

1
2—5
6—7
8
9—15
16—24
16—19

Contents■ Toyoda Precepts
Carrying out the spirit of founder Sakichi Toyoda,

20—24• Always be faithful to your duties, thereby contributing to the Company and to the overall good.
• Always be studious and creative, striving to stay ahead of the times.
• Always be practical and avoid frivolousness.

Outline of Businesses
Message from the Chairman and President

Environmental Initiatives

60
61

Financial Highlights
Top Interview
Special Features
1 —Product Development Exploiting Combined■Strengths of Diverse Businesses—
Development of New Lift Trucks Fitted withEngines Having Significantly Greater
Environmental Performance
2 —Contributing to Customers’ Businesses with■
Advanced Technologies and Services—
Toyota Industries’ Air-Jet Looms Undergoing
Evolution Together with Customers Worldwide

62—63
64—65
66
67—68
69
70

Vision for Environmental Activities
Structure to Implement Environmental
Management
Fifth Environmental Action Plan
Establishing a Low-Carbon Emission Society
Establishing a Recycling-Based Society
Reducing Environmental Risk and Establishinga Society in Harmony with Nature
Environmental Management
Environmental Impact Flow andEnvironmental Accounting

Financial Section / Corporate Information• Always strive to build a homelike atmosphere at work that is warm and friendly.
• Always have respect for God, and remember to be grateful at all times.

■ Basic Philosophy[Respect for the Law]
Toyota Industries is determined to comply with the letter and spirit of the law, in Japan and overseas, and to be fair andtransparent in all its dealings.
[Respect for Others]
Toyota Industries is respectful of the people, culture, and traditions of each region and country in which it operates.
It also works to promote economic growth and prosperity in those regions and countries.

Business Activities

26—31
32—37
32—33
33—34
34—36
36—37
38—39
40

Materials Handling Equipment
Automobile
VehicleEngineCar Air-Conditioning Compressor
Car Electronics

Logistics
Textile Machinery[Respect for the Natural Environment]
Through its corporate activities, Toyota Industries works to contribute to regional living conditions and social prosperity and also
strives to offer products and services that are clean, safe, and of high quality.

Corporate Social Responsibility[Respect for Customers]
Toyota Industries conducts intensive product research and forward-looking development activities to create new value for its
customers.
[Respect for Employees]
Toyota Industries nurtures the inventiveness and other abilities of its employees. It seeks to create a climate of cooperation, so that
employees and the Company can realize their full potential.

■ Editorial policy

In aiming to realize a deeper understanding of the Toyota Industries Group among a broad
spectrum of stakeholders, the Annual Report and Social and Environmental Report have beencombined into the Toyota Industries Report from the fiscal year ended March 31, 2008.
In addition to the Toyota Industries Group’s management policies, the report provides easy-tounderstand information regarding its business, social and environmental activities over the past
year as well as its future direction.

■ Period covered by the report

This report focuses on activities carried out in fiscal 2014 (April 1, 2013 to March 31, 2014), butalso includes some information outside this period.

■ Organizations covered in the report

Toyota Industries Corporation and its consolidated subsidiaries■ Reference guidelines• Global Reporting Initiative (GRI) Sustainability Reporting Guidelines Version 3.1• ISO 26000• Japan’s Ministry of the Environment Environmental Accounting Guidelines (2005 Version)• Japan’s Ministry of the Environment Environmental Reporting Guidelines (2012 Version)

72—80
72—73
74—75
76
77
78—79
80
81—85
81

42
43—49
50—51
52—54
55
56

CSR Policy

57—58

Relationship with Our Local Communities

82—83
84
85

Financial Section
Consolidated Eleven-Year Summary
Consolidated Balance Sheets
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets
Consolidated Statements of Cash Flows

Corporate Information
Board of Directors, Audit & Supervisory Board
Members and Managing Officers
Major Consolidated Subsidiaries
Major Production Bases
Investor Information

Corporate Governance
Relationship with Our Customers
Relationship with Our Associates
Relationship with Our Business Partners
Relationship with Our Shareholders andInvestors

Cautionary Statement with Respect to Forward-Looking Statements
This report contains projections and other forward-looking statements that involve risks and uncertainties. The use of the words “expect,” “anticipate,” “estimate,” “forecast,”“plan” and similar expressions is intended to identify such forward-looking statements. Projections and forward-looking statements are based on the current expectations andestimates of the Toyota Industries Group regarding its plans, outlook, strategies and results for the future. All such projections and forward-looking statements are based on
management’s assumptions and beliefs derived from the information available at the time of producing this report and are not guarantees of future performance. Toyota Industries
undertakes no obligation to publicly update or revise any forward-looking statements in this report, whether as a result of new information, future events or otherwise. Therefore, itis advised that you should not rely solely upon these projections and forward-looking statements in making your investment decisions. You should also be aware that certain risks
and uncertainties could cause the actual results of Toyota Industries to differ materially from any projections or forward-looking statements discussed in this report. These risks
and uncertainties include, but are not limited to, the following: (1) reliance on a small number of customers, (2) product development capabilities, (3) intellectual property rights,(4) product defects, (5) price competition, (6) reliance on suppliers of raw materials and components, (7) environmental regulations, (8) success or failure of strategic allianceswith other companies, (9) exchange rate fluctuations, (10) share price fluctuations, (11) effects of disasters, power blackouts and other incidents, (12) latent risks associated withinternational activities and (13) retirement benefit liabilities.

1

Outline of Businesses

Materials Handling Equipment

Automobile

The flow of goods links the world and enriches the lives of people and society.
By providing a diverse range of materials handling equipment such as lift trucks,
Toyota Industries supports persons working at the frontlines of logistics andhelps bring smiles to the faces of people the world over.

Get behind the wheel with a solid, reassuring feel and enjoy the true pleasure of driving.
Besides vehicle assembly, Toyota Industries produces various automobile-related components
such as engines and compressors, the latter of which comprises the heart of car air conditioners.
We are there for you to create a comfortable vehicle interior.

Internal-combustion lift truck

Electric compressor[Main Products]

Electric lift truck[Main Products]

Reach truck

Low lift truck

Aerial work platform

Automated storage
and retrieval system

Automatic guided vehicle

The Materials Handling Equipment Segment develops, produces, sells and provides services for a broad range of products, fromindustrial vehicles centered around a full lineup of lift trucks (0.5- to 43-ton capacities) to materials handling systems.
Lift trucks, which capture the top global market share*, are delivered to customers around the world under the TOYOTA, BT,
RAYMOND and CESAB brands through Toyota Material Handling Group. Toyota Industries also strives to provide finely tuned aftersales services so that customers can always use our products in the best possible condition. While raising the level of after-sales
services for developed countries, we are reinforcing our sales and service networks as well as enhancing service training for emerging
countries.
* Survey by Toyota Industries Corporation

RAV4

Vitz
(Yaris outside Japan)

Diesel engine

Variable-displacement
type compressor

Fixed-displacement
type compressor

DC-DC converter

From vehicle assembly to parts production, the Automobile Segment engages in a wide range of car-related businesses, leveraging
synergies among its business divisions in development and production.
Vehicle: With its strengths as an industry leader in safety, the environment, quality, cost and delivery, the Vehicle Business produces compact to midsize automobiles.
Engine: In addition to diesel engines produced under a comprehensive structure ranging from planning and development to production, we also produce gasoline engines.
Car Air-Conditioning Compressor: Toyota Industries’ car air-conditioning compressors are highly acclaimed in terms of their reliability at high operating speeds and quiet operationin addition to such excellent environmental-related performance features as compactness, weight reduction and fuel efficiency. The Car Air-Conditioning Compressor Business
captures the world-leading market share in unit sales*.
Car Electronics: The Car Electronics Business develops and produces electronics products primarily for electric-powered vehicles such as hybrid vehicles.
* Survey by Toyota Industries Corporation■ Net Sales■ Operating Income(¥ Billion)(¥ Billion)(¥ Billion)(¥ Billion)

1,000

60

1,200

40

800

50

1,000

40.3%

30
400
200
0

2

Toyota Industries Report 2014

12

13

14

■ Net Sales

400

10

200

0

20

13

14

(FY)

50.1%

10

0

12

■ Percentage of Net Sales(FY2014)

30

600

20

(FY)

■ Operating Income

800

40

600

(FY)

■ Percentage of Net Sales(FY2014)

0

12

13

14

(FY)

12

13

14

3

Outline of Businesses

Logistics

Textile Machinery

The smooth flow of goods, money and information is essential in our daily lives.
Toyota Industries meets diverse customer needs in logistics by offering advanced andhighly efficient logistics services, beginning with land transportation services that deliver to automakers“what is needed, when it is needed and in the quantity needed.”A soft texture caressing your skin. Toyota Industries produces spinning machinery that spins
high-quality yarns and high-speed, energy-saving weaving machinery that produces fabrics.
We deliver textile machinery to customers around the world that incorporates
advanced technologies and is imbued with our dedication to quality.

Air-jet loom
Land transportation service[Main Services][Main Products]

Warehouse logistics

Cash collection and delivery andcash proceeds management service

Data storage, management,collection and delivery service

Toyota Industries is building its own unique business model that pursues optimal flows of goods, money and information fromproducers to consumers, thereby contributing to the overall optimization of customers’ logistics. The Logistics Segment is composedof three business pillars: planning, design and operation of distribution centers to help customers reduce their logistics costs; landtransportation services that primarily focus on cargo deliveries via trucks; and high value-added services such as cash collection anddelivery and cash proceeds management services and data storage and management services.

Ring spinning frame

Roving frame

The Textile Machinery Division, our original business, began with the invention of the automatic loom by founder Sakichi Toyoda.
Presently, we undertake fully integrated operations from development and production to sales and after-sales services for spinningmachines that spin twisted fiber bundles into yarn and weaving machines that weave spun yarn into fabrics. Our textile machinery is
supplied to markets worldwide.
Thanks to superb reliability and high productivity, our air-jet looms have won extensive acclaim from customers around the globe,
capturing the world-leading market share in terms of unit sales*.
* Survey by Toyota Industries Corporation■ Net Sales■ Operating Income(¥ Billion)(¥ Billion)

100

6

4.7 %

80

■ Net Sales■ Operating Income(¥ Billion)(¥ Billion)

80

6

60

4

60

■ Percentage of Net Sales(FY2014)■ Percentage of Net Sales(FY2014)

3.6 %

4

40
40

2

2
20

20
0

0
(FY)

4

Toyota Industries Report 2014

12

13

14

(FY)

0

12

13

14

(FY)

12

13

14

0
(FY)

12

13

14

5

Message from the Chairman and President

Tetsuro Toyoda

Akira Onishi

ChairmanPresident

In front of the Toyoda
Automatic Loom, Type G
displayed at the textile
machinery showroom in
Kariya, Aichi Prefecture

We sincerely appreciate your support of Toyota Industries
Corporation and the Toyota Industries Group.
Looking at the overall economic conditions during
fiscal 2014, ended March 31, 2014, the global economy
continued on a recovery path despite some weakness insuch emerging countries as China and Southeast Asian
nations. The Japanese economy began to rebound as the
positive impact of monetary and fiscal policies spurred afavorable growth cycle reflected by higher consumer
spending, increased corporate production andimprovements in the employment environment and wages.
Under these business conditions, the Toyota Industries
Group focused on its quality first approach to earn thetrust of customers and worked to expand sales byappropriately responding to respective market trends. As aresult of these measures, Toyota Industries achieved
record highs in consolidated net sales, operating income,ordinary income and net income.
Regarding the future outlook, the recovery in the world
economy is expected to sustain momentum while theJapanese economy is anticipated to achieve a full-fledged
recovery driven by the government’s new growthstrategies. Nevertheless, the business environment
remains clouded by a host of uncertainties, as trends in
the Chinese economy warrant close attention andconcerns emerge about the negative effects of thetapering of quantitative easing in the United States and theincrease in the consumption tax rate in Japan.
Amid these circumstances, the Toyota Industries
Group is building a stronger business foundation andaddressing key management issues by leveraging theGroup’s comprehensive strengths to further raise
corporate value.
As immediate tasks, we will maintain and improve our
muscular business structure to respond flexibly to rapidchanges in the business environment. Specifically, we willcomprehensively take into account quality and costs fromthe design stage, reduce lead times from development tosales and undertake cost improvement activities.
Additionally, we will push ahead with the development of
new technologies unmatched by competitors around theworld and plan and develop competitive products tailoredto the characteristics and needs of customers in eachmarket. Moreover, we will work to build global production
and sales structures and expand our value chain toprovide a wide range of services.

Over the medium term, based on our quality first
approach, we regard our top priority tasks as responding
to environmental and safety issues and enhancing global
competitiveness. In doing so, we will support industries
and social foundations around the world by continuously
supplying products and services that anticipate
customers’ needs in order to contribute to a comfortablesociety and enriched lifestyles.
As articulated in Vision 2020, we will develop
environment-friendly, energy-saving products focusing on
the keywords of the 3Es (Energy, Environmental protection
and Ecological thinking), while integrating functions andservices demanded by customers (Value Chain) andproviding these worldwide (World Market). Through thesemeasures, we aim for growth in three business units,
namely the “solution” business unit consisting of materials
handling equipment, logistics and textile machinery; the“key components” business unit encompassing car airconditioning compressors and car electronics; and the“mobility” business unit covering vehicles and engines.
The Toyota Industries Group aims to work in unison torealize Vision 2020 based on the Medium-Term
Management Plan, which lays out specific measures ineach business unit up to fiscal 2016.
To support our global consolidated management, we
will raise workplace capabilities, diversify the utilization of
personnel and nurture human resources capable ofplaying active roles on the global stage.
Besides placing the utmost priority on safety, we willthoroughly carry out compliance, which includes adhering
to laws and regulations, and actively participate in social
contribution activities. Through these efforts, we aim to
win the trust of society while raising corporate value andgrowing in harmony with society.
In closing, we ask for your continued understanding
and support.
July 2014

Tetsuro Toyoda
Chairman

Akira Onishi
President

6

Toyota Industries Report 20147

Financial Highlights
Toyota Industries Corporation
Years ended March 31
Millions of yen% change

2014

2013

2012

2011

2010

2014 vs 2013

2,007,856

1,615,244

1,543,352

1,479,839

1,377,769

24.3%

Operating income

107,691

77,09870,092

68,79822,002

39.7

Ordinary income

138,133

86,83680,86673,911

31,75659.1

Net income (loss)

91,705

53,11958,59447,205(26,273)

72.6

Research and development expenses

46,32639,05732,07027,78826,826

18.6

Cash dividends per share (yen)

85.00

55.00

50.00

50.00

30.00

54.5

Total assets

3,799,010

3,243,779

2,656,984

2,481,452

2,589,246

17.1%

Total net assets

1,829,326

1,524,933

1,197,841

1,075,939

1,104,929

20.0

49,33347,41243,51640,82538,903

4.1

For the YearNet sales

At Year-End

Number of employees■ Net Sales■ Operating Income■ Net Income (Loss)(¥ Billion)
2,500(¥ Billion)
120(¥ Billion)

100

80

2,000

100

60

80
1,500

Top Interview

40

Akira Onishi, President

60
20

1,000

40
500

0

20

0
(FY)

10

11

12

13

14

0

-20
-40
(FY)

10

11

■ Total Assets■ Total Net Assets(¥ Billion)
4,000(¥ Billion)
2,000

12

13

(FY)

14

10

11

12

13

14

■ Cash Dividends per Share
(¥)
90
80
70

1,500

3,000

Responding Flexibly toan Evolving Business Environment
and Accelerating Initiatives for
Sustainable Growth

60
2,000

1,000

1,000

500

President Akira Onishi explains our initiatives for realizing the vision, as wellas management policies, under the principle of “contributing to a comfortablesociety and enriched lifestyles.”

50
40
30
20
10

0

0
(FY)

8

10

11

Toyota Industries Report 2014

12

13

14

0
(FY)

10

11

12

13

14

(FY)

10

11

12

13

14

9

Top Interview

First of all, could you provide
an overview of Toyota Industries’Q
initiatives and business resultsin fiscal 2014?
Looking back at fiscal 2014, despite some disparities
by geographic region, both the Japanese and world
economies were generally favorable. Under these
conditions, Toyota Industries implemented important
growth initiatives in each business.
In the core Materials Handling Equipment
Business, amid a generally buoyant market, weundertook proactive sales expansion activities utilizing
our wide-ranging product lineup and the sales
networks we have strengthened up until now. These
measures led to an increase in unit sales and bolsteredbusiness results globally. Of particular note, U.S.-based
Cascade Corporation, one of the world’s leading
manufacturers of lift truck attachments that became aconsolidated subsidiary at the end of March 2013,
steadily carried out business activities and made asignificant contribution to our consolidated businessresults. Toyota Industries and Cascade are currently
undertaking activities to foster mutual understanding
and learn from each other’s strengths.
Among automobile-related businesses, the

Car Air-Conditioning Compressor Businessachieved higher unit sales on a global basis. The
Vehicle Business recorded a steep increase in unit
sales thanks to brisk sales of the RAV4, which
underwent a full model change at the end of 2012.
Conversely, the Engine Business posted lower sales,
as sales of KD diesel engines were undermined bysluggish automobile sales in Asia. The Car Electronics
Business recorded favorable sales to automakers inand outside Japan, primarily to Toyota Motor
Corporation (TMC).
The Logistics Business attained growth in sales
supported by an increase in logistics services and landtransportation services for automotive-related parts.
The Textile Machinery Business generated amarked increase in sales owing to a positive
performance in the important China market as well as
to the introduction of a new air-jet loom that offers
superb environmental performance.
As a result of these developments, in fiscal 2014 Toyota
Industries posted net sales of ¥2,007.8 billion andoperating income of ¥107.6 billion, both representing
record highs. Taking into consideration an array offactors such as our business results, future demand forfunds and the payout ratio, Toyota Industries raised
cash dividends per share by ¥30 from the previous
fiscal year to ¥85.

Can you describe the initiatives you
Q are implementing to attain further
growth in the years ahead?
Toyota Industries formulated Vision 2020 as its aspired
shape for the medium and long terms. Within thisvision, we are implementing the following threemeasures as major growth strategies.
The first is to contribute to realizing a society withminimum environmental impact throughtechnological innovation in environment andenergy areas such as energy conservation.
In lift trucks, a core product in the Materials
Handling Equipment Business, we are strengthening
environmental performance by undertaking in-housedevelopment of main functional components forinternal-combustion and electric lift trucks.
Regarding internal-combustion lift trucks, we

New lift truck fittedwith an industrial engine developed in-house

introduced a lift truck fitted with a new industrial engine,which was jointly developed with the Engine Division,and a turbocharger. In October 2013, this lift truck was
first unveiled in North America. It meets stringent
emission regulations without using a diesel particulate
filter and realizes a drastic improvement in fuelefficiency compared with the previous model. Electric■ Vision 2020

Support industries and social foundations around the world by continuously
supplying products/services that anticipate customers’ needs in order tocontribute to a comfortable society and enriched lifestyles

To contrib
contribute too a comfortablecom
omfortable
mfort
society andnd enriched
enrriched lifesty
lifestyles
yles

Solution

Key Components

MobilityNew
Product

New
Product

New
Product

New
Product

New
Product

3Es (Energy, Environmental protection and Ecological thinking)<Technological innovation in environment/energy areas>

Value Chain<Expansion of value chain>

World Market<Business development in world markets>

Contribute to realizing a society
with minimum environmental
through
iimpactt th
h ttechnologicalh l i linnovation in environment/
energy areas

Create new business value by
strengthening both hardware
anddevelopmentd software
ft
d
l
t by
b
cultivating technology “seeds”

Develop businesses all over theworld and meticulously
respondd tot eachh region’s
i ’customer needs

Maintain the world’s
highest-level SEQCD* by
improvingbusinessbasedii our bibdon team strength and TPS

Strengthen growth potential byleveraging synergies among
divisions,strategic
M&As anddi i it t i M&Adalliances* Safety, the environment, quality, cost and delivery

10

Toyota Industries Report 201411

Top Interview

lift trucks now account for more than half of Toyota
Industries’ unit sales of lift trucks corresponding totighter environmental regulations mainly in developed
countries and growth in indoor logistics. In collaboration
with the Electronics Division, the Materials Handling
Equipment Business has been jointly developing
motors and controllers, the keys to raising environmental
performance of electric lift trucks, to differentiate our lift
trucks in terms of both power and operating hours.
In automobile-related businesses, environmental
performance is also becoming increasingly crucial.
For example, the tightening of vehicle fuel efficiency
regulations is giving rise to a greater need for variabledisplacement type car air-conditioning compressors,which have higher fuel efficiency. Toyota Industries istherefore strengthening development and production ofvariable-displacement type compressors. We are also
making significant strides in raising fuel efficiency andrealizing lighter weight for electric compressors forhybrid and other vehicles. Together with compressors
for internal-combustion vehicles, we are expanding
sales of electric compressors not only to TMC but also
to automakers around the world.
The second measure is to expand our value chain,
which includes continuously providing excellent
products. In other words, we aim to maximize thevalue our products create for customers.
Specifically, we strive to assist customers in every
domain of their businesses, such as providing services
that ensure our materials handling equipment andtextile machinery, which are industrial goods, arealways used in the best possible condition.
In the Materials Handling Equipment Business,
we are pursuing a variety of initiatives to strengthen thequality of crucial services in each country for theseindustrial goods. These measures include providing

education for service trainers primarily at the Global
Training Center and holding the Service Skills Contest
to enhance dealer service.
We are also strengthening our own in-house
response capabilities to address rising needs in leasing
and other forms of sales finance. As specific examples,in June 2013 we established bases to provide financing
services in Mexico and France, both of which
subsequently started operations. Through these steps,
we are building a structure that is able to respond to avariety of customer needs through an integrated
structure for sales, service and financing.
In the Textile Machinery Business, we rolled out a
new air-jet loom that further advances energy-saving
performance, one of our strengths. By digitizing our
extensive accumulated know-how, we equipped thelatest loom with a system that automatically sets the
optimal weaving conditions. This feature offers the kindof added value that only a master craftsperson canelicit by maximizing the performance of a weaving
machine. As for spinning machinery, we will expand the
production capacity of our base in India and carry out
production close to our customers to provide more
timely services suited to local needs.
The third measure is to conduct business andprovide customers with products and services
wherever there are markets across the world,
including in emerging countries that play a
growing role in driving economic growth.
In the Materials Handling Equipment Business,
our focus in developed countries has been on building
production structures close to markets. Alternatively, inemerging countries we have gradually shifted to bases
optimally situated for supplying sales distributors to
reduce lead times and lower transportation costs.
Several important steps for responding to growing

markets primarily in emerging countries included therelocation and expansion of a production base in China
in June 2013. Also, we established a new plant in Brazilin October 2013, where the market is expected to grow,and commenced production of internal-combustion lift
trucks, for which there is a high market demand.
In the Car Air-Conditioning Compressor Business,
we are securing increased orders from automakers on
the back of an expansion of automobile sales and thestrengthening of fuel efficiency regulations globally. To
meet this rising demand, we are augmenting our
production capacity in North America, Europe andAsia. Especially in North America, there has beenmarked growth in demand for variable-displacement
type compressors that offer high fuel-saving
performance. In response, we started up a local plantin September 2013 for producing key functional
components to raise local procurement rates.

Production base for key functional components
for variable-displacement type compressors (North America)

What benefits does Toyota Industries
Q derive from operating such a diversityof businesses?
Toyota Industries engages in a variety of businesses
encompassing materials handling equipment,
automobile-related businesses and textile machinery.
Within these businesses, we have world-leading market
shares* in three product categories: lift trucks, a coreproduct in the Materials Handling Equipment Business;
car air-conditioning compressors in automobile-related
businesses; and air-jet looms in our founding Textile
Machinery Business. From this perspective, Toyota
Industries is a truly unique company within the
Toyota Group.
The advantages of this type of business structure
may not be apparent for some of our stakeholders.
To be more specific, in areas such as development andproduction, horizontally aligned collaboration among
business divisions enables the strengths of eachbusiness to be shared, which in turn further reinforcesthese businesses. Going forward, we will step up
efforts to maximize this benefit.
In the area of development, the Materials Handling
Equipment Business and automobile-related
businesses are leveraging their respective accumulated
technologies and know-how and increasing the* Survey by Toyota Industries Corporation■ Toyota Industries’ Business Composition

Textile Machinery/
Others

Logistics

5%

5%

Net sales for FY2014

40% ¥2,007.8 50%
Materials Handling
Equipment

billionAutomobile
VehicleEngineCar Air-Conditioning Compressor
Electronic Parts, Foundry and Others

Lift truck plant (Brazil)

12

Toyota Industries Report 201413

Top Interview

number of joint development projects in environmental
technologies such as energy conservation andelectrification. As prime examples of this teamwork, theMaterials Handling Equipment Division has beenworking jointly with the Engine and Electronics divisions
to develop key functional components for lift trucks.
Similarly, the Compressor and Electronics divisions
have been jointly developing electric compressors.
Through such collaboration, we aim to create highvalue-added and distinctive products.
In the area of production as well, we encourage
collaboration among business divisions to raise quality
and productivity and promote cost improvement
activities. Specific measures include undertaking
activities to further strengthen production engineering
capabilities such as in casting, machining andassembly, which are common functions in eachbusiness. We also promote cross-divisional applicationof excellent examples of improvements. Althoughconcerns have been voiced about the future of Japan’s
manufacturing, Toyota Industries is harnessing thestrengths of each business division in development
and production and further refining its manufacturing
so that we can continue providing products andservices that meet the needs of customers in every
region of the world.

Engine development

Looking to the future, we will further promote thesemeasures, utilize the advantages of operating adiversity of businesses and further strengthen our
growth potentials.

Q

Could you explain what you mostvalue in management?

Making Group-wide efforts toward the realizationof Vision 2020
Designating Vision 2020 as its aspired shape toward
the year 2020, Toyota Industries is making Group-wide
efforts to realize this vision. Specifically, we aim to“support industries and social foundations around theworld by continuously supplying products and services
that anticipate customers’ needs in order to contributeto a comfortable society and enriched lifestyles.” To thisend, we particularly value a customer perspective
and innovation.
Since our company was founded, we have been
contributing to society by manufacturing and providing
high-quality products that satisfy customers. Thisapproach has in turn led to Toyota Industries’ growth.
We are engaging in business with a customer
perspective by going back to the basics, by keeping in
mind who our end users are and what their innate
needs are and by having an awareness that all ouroperations are ultimately connected to customers.
Providing customers with excellent products andservices is contingent upon spurring innovation intandem with the implementation of existing initiatives.
One of the Toyoda Precepts states, “Always be
studious and creative, striving to stay ahead of thetimes.” These words literally refer to innovation. Goingforward, we aim to raise competitiveness by sparking
innovation not only in technology development but alsoin production, sales, services and all other functions.
As we work to attain our vision, the businessenvironment surrounding Toyota Industries is evolving
at an unprecedented speed. Under such conditions,
we will further promote the delegation of authority in
our efforts to execute swift and agile management
while strengthening necessary monitoring and checking
functions. While the Head Office will continue todeliberate on major issues that affect the entire Toyota
Industries Group, we will promote delegation of
authority to speed up the implementation of individual
projects in each business.
The environment today is becoming increasingly
uncertain in step with the ongoing advance of
globalization. Benefitting from a tailwind at the moment

doesn’t mean we will never encounter headwinds
again. As a matter of course, we must be highly
attuned to any risks and keenly sensitive to changes.
It will also be crucial that we respond flexibly whenchanges occur or even when there are signs of change.
However, this doesn’t mean we should shift gear every
time an occasion demands. We must avoid inflexible
approaches and respond swiftly, utilizing methods andchannels optimally suited to addressing changes in theenvironment while firmly keeping an eye on our major
objective of realizing our vision.
We will promote management based on theconviction that working toward realizing our vision
under the principle of contributing to society will
inevitably lead to the growth of Toyota Industries.
Place high value on our corporate culture thatencourages employees to take active roles andtackle new challenges
For a company’s sustainable growth, it is essential thateach and every employee takes an active role.
Currently, approximately 50,000 employees are working
at Toyota Industries worldwide. It is a group blessedwith an immense diversity in nationalities, job duties,
experiences and ways of thinking. In such anenvironment, each employee can purposefully carry out
his or her work by sharing the same goals and having
an awareness that completing each task will ultimately
lead to the attainment of those goals. As such, Toyota
Industries is striving to instill the importance of sharing
Vision 2020 as an overall management direction and of
fulfilling their roles at their respective workplace.
We are also strengthening our efforts in such areas
as safety and quality to solidify the corporate
foundation that will support our sustainable growth.
In these areas as well, we are nurturing a corporate
culture that encourages respective employees to takeproactive actions. In July 2013, we formulated the
Safety Vision and have been striving to establish asafety-oriented culture in which employees warn eachother when someone is engaging in an unsafe activity,
rather than relying solely on rules and systems.
In addition to sharing the same goals and playing
respective roles, taking on new challenges is absolutely
essential. After observing his own mother struggling
with her hand loom, Toyota Industries founder Sakichi
Toyoda embarked on research into looms with adetermination to “invent a loom that will somehow
make my mother’s work easier.” While encounteringharsh circumstances of having insufficient capital andlacking the support of the people around him, Sakichi
overcame a host of difficulties and finally succeeded indeveloping an automatic loom. In this regard, it isimportant to proactively and resolutely take onchallenges with high objectives.
Needless to say, nurturing human resources whowill lead Toyota Industries in the next generation is vital.
We have been enhancing the venues where employees
can learn, including the establishment of the Technical
Learning Center and the Toyota Industries Global
Learning Center. In addition, we are providing an
expanding array of opportunities for young employees
to interact with staff working at subsidiaries outside
Japan so that they can practice what they havelearned. Successful development of human resources,
however, involves more than just the persons educating
providing opportunities unilaterally. It is also importantthat each of the individuals being educated proactively
participate in corporate activities with a strong sense of
motivation. As opposed to a workplace environment
where supervisors must teach everything, we are
striving to create a corporate climate in which
supervisors will let their subordinates try without fearing
the consequences as well as look out for them.
Going forward, we remain committed toaccelerating initiatives for realizing our vision to meetthe expectations of our stakeholders through oursustainable growth.

Air-jet loom production site

14

Toyota Industries Report 201415

Special Feature

1

Continued Growth in Lift Truck Market—Product Development Exploiting Combined Strengths of Diverse Businesses—

As economic activities expand, flows of commodities increase and become more active. Active, yet smoothcommodity flows support people’s daily life.
Smooth commodity flows are ensured by lift trucks, for which Toyota Industries enjoys the world-leading
market share* in unit sales.
In October 2013, we released new internal-combustion lift trucks in North America. This special feature sheds
a spotlight on how we leveraged the combined strengths of our diverse businesses in developing these models.
* Survey by Toyota Industries Corporation■ Global Lift Truck Market and Toyota Industries’ Unit Sales
Global lift truck market (CY)

Toyota Industries’ unit sales (FY)
(Thousandunits)(Thousandunits)

250

800

200

600

150

400

100

200

50

Global lift truck market

1,000

0
(CY/FY)

2007

2008

2009
Japan

2010

2011

2012

North America

2013

Development of Lift Trucks with Even
Greater Product Appeal
The new lift trucks are fitted with our newly developed
industrial engines that offer improved environmental
performance in the form of considerably higher fuelefficiency. Other contributing factors to improved fuelefficiency are modifications made to the drive andhydraulic systems.
We also added changes to the truck body in an effort toenhance overall performance. We reviewed the functioningof a mast, which supports the lifting and lowering of a fork
carrying cargo, and redesigned its shape. The result was
excellent forward visibility, which in turn contributed toensuring enhanced workability and safety during operation.
We also used our ingenuity in the rearrangement of thespace surrounding the operator’s seat and the shape ofcabin openings, thus successfully improving operator
comfort and accessibility.

02014(Plan)

EuropeToyota Industries’ unit sales

Development of New Lift Trucks Fitted withEngines Having Significantly Greater
Environmental Performance

Since commencing production of lift trucks in 1956, wehave been providing optimum products to customers andresponding to their needs through our enhanced sales andservice networks. In the fields of electric-powered andinternal-combustion lift trucks, we offer an extensive lineup
of products ranging from small to large models and currently
hold the world-leading market share in unit sales.
After showing a drastic decline following the global
recession triggered by the collapse of Lehman Brothers in
2008, the global lift truck market returned to a growth pathin line with an upswing in the global economy, reaching alevel of 1 million units in 2013. Going forward, a continued
recovery of the global economy and the subsequent rise inlogistics volume will add greater importance to the role thatlift trucks play in supporting commodity flows.

Internal-combustion lift trucks with capacities of 3.5 to
8.0 tons are one of the core groups of products we offer inthe field of lift trucks and have been used by customers insuch industries as paper, transportation and lumber for avariety of manufacturing and logistics activities.
Against this background, we undertook efforts to greatly
enhance our product appeal, including newly developed
engines, under the key concept of “Attain the Industry’s
Top-Level Environmental Performance” and implemented
a model change starting from North America in 2013.

Others

CY: calendar year ended Dec. 31; FY: fiscal year ended March 31 of the following year
(Survey by Toyota Industries Corporation)

Growing Need for Greater Environmental
Performance in Internal-Combustion Lift
TrucksDemand for electric lift trucks is growing among customers
handling materials in such indoor logistics sites as
warehouses and plants. Demand for powerful internalcombustion lift trucks, on the other hand, still remains
strong among customers operating outdoors or handlingheavy loads.
Recently, environmental awareness has been growing ona global scale. Coupled with efforts in various industries toreduce logistics costs, internal-combustion lift trucks are
now required to offer greater fuel efficiency and passincreasingly rigorous emission standards, which have been
applied to lift trucks and other materials handling equipment
by a number of countries.
Since starting the development of internal-combustion
lift trucks about 60 years ago, we have been constantly
seeking to enhance the appeal of our products in the areasof functionality, safety and reliability as well as in terms ofenvironmental performance, including fuel efficiency.

16

Toyota Industries Report 2014

Redesigned mastMoreover, we divided the lift truck body into six modules,
including left and right frames, cabin (operator’s seat) andpowertrain (drive system). This will enable us to add newmodels or change specifications more quickly in the future,
which we hope will lead to a shorter development period.

Developing Industrial Engines Leveraging
Years of Experience and via Collaboration
among Business Divisions
Our newly developed industrial engines that featuresignificantly higher environmental performance were the key
to success in developing these new lift trucks.
The Materials Handling Equipment Division and theEngine Division have been closely collaborating in the17Engines Featuring Significantly Improved
Environmental Performancedevelopment of lift truck engines. By quickly and accurately
capturing the needs of lift truck customers and reflecting
these needs in engine development, the two businessdivisions are efficiently creating engines that are ideal
for lift trucks.
Since launching production of engines in 1953, we haveproduced a variety of engines for automobiles as well as for
lift trucks and other materials handling equipment. Currently,
we manufacture automobile engines, including KD diesel
engines that are installed in the Innovative International
Multi-purpose Vehicle (IMV) series of Toyota Motor
Corporation (TMC); VD diesel engines fitted mainly in theLand Cruiser; AR gasoline engines primarily for the RAV4;
and industrial engines, including Y gas/gasoline engines.
In addition, we also have been playing a major role inthe development of diesel engines and accumulating
technology and know-how concerning automobile andindustrial engines.

Our newly developed Toyota 1KD industrial diesel engine
offers 23%*1 lower fuel consumption. It also features 43%*2
downsized displacement compared with the current model,
enabling easier mounting on lift trucks. For the 1KD diesel
engine, an internally developed turbocharger greatly
contributed to lower fuel consumption and downsized
displacement and allowed us to clear emission standards
without relying on diesel particulate filters (DPF) that are
generally used to remove particulate matter (PM).

air, we applied our compression and machining technologies
that we have cultivated in the field of car air-conditioning
compressors. By utilizing a range of technologies and knowhow accumulated in other business divisions, we were able
to develop a more durable and compact turbocharger.
*1: Rated fuel consumption compared with the previous model (15Z, 280 g/kWh)*2: Compared with the previous model (15Z, 5,204 cc)

Further Accelerating Development of Lift
Trucks by Drawing on Our Strengths Derived
from Diverse Businesses
Toyota 1KD
diesel engine

Enhancing Development of Industrial Engines
Turbocharger

While being able to remove PM, DPF must use fuel toburn PM accumulated in the filter in order to restore theirfiltering performance, the process of which may require
downtime of lift trucks. A structure without DPF eliminates
the need for this fuel and work procedures, thereby
contributing to greater fuel efficiency and better productivity.
Moreover, industrial engines need to operate for a longer
period of time in a more demanding environment comparedwith automobile engines and thus require a highly durable
turbocharger. To develop a component used to compress
Engine development

those for automobile engines will be enforced, and in
emerging countries, where emissions will become subject
to more stringent control. We aim to raise the competitiveedge of our industrial engines and extend their use fromlift trucks produced in-house to other industrial equipment
fields. Specifically, we will promote sales of our engines
for such industrial equipment as construction andagricultural machinery.

In 2013, we successively developed three industrial engine
models. Leveraging our years of experience and combined
strengths of our diverse businesses, these engines haveattained significantly higher environmental performance.
The Toyota 1KD diesel engine and Toyota 1FS gas/
gasoline engine are installed in 3.5- to 8.0-ton capacity
internal-combustion lift trucks that underwent a modelchange and were marketed in North America. The Toyota
1ZS diesel engine is fitted in 1.5- to 3.2-ton models.
We expect the need for more compact industrial engineswith cleaner emissions will grow both in developed
countries, where rigorous emission standards equivalent to

The 3.5- to 8.0-ton capacity internal-combustion lift trucks
incorporating our total strengths were released in October
2013 in North America. We will expand sales of thesemodels globally, first to Europe and then to Japan. We seek
to satisfy the diverse needs of customers by fine-tuning our
product lineup and specifications to the characteristics ofrespective markets.
In addition to the Engine Division and the Compressor
Division highlighted in this feature story, the Materials
Handling Equipment Division is facilitating collaboration in
the areas of foundry, one of the elemental technologies
associated with lift trucks, and electronics, which is
closely related to the development of electric lift trucks.
By capitalizing
on our strengths
generated bythese diverse
businesses, wewill continue tofocus on thedevelopmentof lift trucks
that capture
customer needs.
Event for dealers held in Chicago to announce therelease of new models■ Specifications of New Industrial Engines(Survey by Toyota Industries Corporation)

DieselGas (LPG)/gasoline

Model

Toyota 1KD(Previous model)
15Z

Toyota 1ZS(Previous model)
3Z

Toyota 1FS(Previous model)
1FZ

Cylinder typeIn-line 4-cylinder

In-line 6-cylinder

In-line 3-cylinder

In-line 4-cylinder

In-line 4-cylinder

In-line 6-cylinder

Displacement

43% smaller

5,204 cc

48% smaller

3,469 cc

18% smaller

1,795 cc

2,982 ccthan the previous model

Maximum
output*3
Maximum
torque*3

55 kW (2,200 rpm)

than the previous model

4,476 ccthan the previous model

66 kW (2,550 rpm)*5

63 kW (2,350 rpm)*5

55 kW (2,000 rpm)

41 kW (2,200 rpm)

42 kW (2,200 rpm)

300 Nm (1,200-1,500 rpm) 275 Nm (1,800 rpm)

200 Nm (1,600 rpm)

200 Nm (1,600 rpm) 290 Nm (1,200-1,400 rpm)* 294 Nm (1,200 rpm)*5

Fuel
consumption*3 *4

215 g/kWh*3: Values provided for reference purpose only
Toyota Industries Report 20145

221 g/kWh
280 g/kWh

23% lower
than the previous model

Major
applications

18

3,685 cc

20% lower
than the previous model

233 g/kWh
276 g/kWh

10% lower

259 g/kWhthan the previous model

Lift trucks, construction equipment, agricultural machinery, etc.
*4: Rated fuel consumption*5: Using liquefied petroleum gas (LPG)

19

Special
特 集Feature2

2

Toyota Industries’ Textile Machinery
Winning Trust Spanning Generations—Contributing to Customers’ Businesses with Advanced Technologies and Services—

Toyota Industries’ Air-Jet Looms Undergoing
Evolution Together with Customers Worldwide

in the Textile Industry That Drives Pakistan’s Economy
Established in 1951, Nishat Mills, Ltd is one of the largest textile companies in Pakistan and has since
become the country’s representative conglomerate, with its businesses encompassing not only textiles, its
founding business, but also banking and insurance. Since Nishat Mills’ establishment, Toyota Industries has
been involved in an excellent business relationship with the company across generations as a main supplierof spinning and weaving machinery.
For this special feature, we spoke with Mr. Muhammad Mansha, Chairman of the Nishat Group, about histhoughts on Toyota Industries’ textile machinery and the long-standing history between the two companies.

Toyota Industries Providing Support
since Our Foundation

JAT810, Toyota Industries’ latest air-jet loom

新型エアジェット織機 JAT810

Sakichi Toyoda, the founder of Toyota Industries Corporation, devoted his passion to the invention of automatic
looms. Inheriting such dedication, our air-jet looms have evolved into a product that incorporates a number ofadvanced technologies and continue to claim the No. 1 global market share*.
On the back of economic expansion in such emerging countries as China, India and ASEAN nations, thegrowth rate of the textile industry is expected to surpass the global population growth rate. As such, we
anticipate our air-jet looms will provide vital support to the development of the textile industry.
Toyota Industries’ air-jet looms are capable of weaving a vast range of products, including standard fabrics
for shirts and sheets; comfortable denim with extensive design possibilities; soft and exceptionally absorbent
high-end towels; and light and highly functional sportswear featuring excellent breathability and quick drying.
What’s more, our air-jet looms can be used to manufacture such industrial products as materials for electronic
components. These expansive capabilities are highly acclaimed by numerous customers worldwide.
In this special feature, we look back on how we have forged deep relationships with our customers and how
our air-jet looms have become their weaving machine of choice.
* Survey by Toyota Industries Corporation

Nishat Mills began its remarkable journey when my father
established a small spinningmill in 1951 in Pakistan. With
the purchase of shuttle looms
from Toyota Industries(hereafter, Toyota) in the mid1950s, the company entered
the weaving business. In
1962, we established aspinning mill in what was thenEast Pakistan (currently
Bangladesh) and installed
Toyota’s spinning machinery.
Mr. Muhammad Mansha
Chairman of MCB Bank;
After inheriting the business
Chairman of Nishat Group
from my father, we introduced
Toyota’s RY spinning frames in1981 and from there we dramatically expanded our spinningbusiness. In the mid-1990s, we constructed a dyeing andfinishing plant, in which we subsequently established theweaving division in 2003, and purchased Toyota’s JAT710
air-jet loom for the first time. Since then, our textile businessreally took off.
From the very beginning of our existence until now,
Toyota has always been there for us, supporting our growthwith their technologies and services. What is remarkableabout Toyota is that they not only offer state-of-the-art
machinery but also provide our factory operators withmeticulous guidance on the optimum methods of operationand maintenance specifically suited to our business throughclose observation of the operational status at our factories
by Toyota’s developers and service staff. With this kind of
support, we have been able to manufacture products byeliciting the maximum performance of the machines at all
times. When machines are not working well, we can dependon Toyota to offer quick and comprehensive maintenancesupport. If improvements are required, they make sure thesewill be reflected in the development of the successor model.
In these ways and others, we have absolute faith in theirsincerity and integrity.

Contributing to the Development of the Textile
Industry with the Latest Air-Jet Looms
In 2014, we completed a new textile mill, which features thelatest JAT810 air-jet looms. Under the concept of the world’s
best energy-saving textile mill, the factory is fitted with lighting
fixtures, air conditioners and other equipment that incorporate
the latest advancements in environmental technologies. We
believe it’s one of the most environmentally conscious textile
mills not only in Pakistan but also throughout the world.
Needless to say, we demanded extremely strict environmental■ Toyota Industries’ After-Sales Service Network (Overseas Service Centers)■ Air-Jet Loom Market Share (2013)
Total market size and share:
Survey by Toyota Industries Corporation■ Textile Product Demand and Global Population Growth(Thousand tons)(Million tons)(Billion persons)(Billion persons)880● 1 South Korea● 2 China(Shanghai, Shaoxing, Wujiang,
Jinan, Changzhou, Lanxi, Tianjin)

6

60

8

ToyotaIndustries
Total market size

25,000 units

31%

4

40

2

20

0

(Year)

1995

2000

2005

2010

2012

0
(Year)■■ Textile product demand (Source: TEXTILE HANDBOOK 2014)■■ Global population (Source: Population estimates by Japan’s Statistics Bureau,
Ministry of Internal Affairs and Communications)20

Toyota Industries Report 2014

1
7

2
6

● 3 Taiwan

9● 4 Thailand

34● 5 Indonesia

5● 6 India
10● 7 Pakistan● 8 Switzerland● 9 U.S.A.
● 10 Brazil

21

performance of weaving machines because they will play acentral role at this factory. After closely comparing Toyota’s
and their competitors’ products, we decided to install
Toyota’s JAT810 air-jet looms. We know we made the rightdecision because the textile mill as a whole has been able tosave energy by up to 20%.
Although Pakistan has been plagued with unstable
power supplies, as the country’s representative
conglomerate the Nishat Group is tackling the problem headon. We are striving to take the initiative in energy savings,
thus contributing to the development of our country’s
industries.
My son, Umer Mansha, has now taken over the Nishat
Group’s textile business. I hope he will continue to cherishand carry on the relationship of trust with Toyota well into

the future, just as I did when I
succeeded my father.
I have a special affinity for the
textile business, which
represents the roots of the
Nishat Group. Likewise,
Toyota began its corporate
journey with the textile
machinery business. I sincerely
hope the two companies willcontinue to grow while
contributing to thedevelopment of society.

Toyota Industries Supporting a Cutting-Edge Businessin Taiwan’s Electronics Industry that Contributes to the Global Economy

Mr. Umer Mansha
CEO of Nishat Mills, Ltd

The electronics industry accounts for a large portion of the Taiwanese economy.
Nan Ya Plastics Corporation (NPC) is a member of the Formosa Plastics Group, one of the largest
conglomerates in Taiwan, and engages in the manufacture of such products as cloths for printed circuitboards of mobile phones and PCs as well as glass fibers for weaving these cloths. As one of the world’s mostprominent players in the glass fiber field, NPC is a significant contributor to the electronics industry in Taiwan
and operates more than 3,000 air-jet looms made by Toyota Industries.
Mr. William Wong, Chairman of the Formosa Plastics Group, to which NPC belongs, talked about the role Toyota
Industries’ air-jet looms are playing in the manufacture of high value-added products for the electronics industry.

Air-Jet Looms Suitable for
the Production of High-Quality Cloths for
Printed Circuit Boards

JAT810 air-jet looms in operation at Nishat Mills, Ltd■ Excellent Energy-Saving Performance of JAT810 Air-Jet Loom
The most prominent feature of air-jet looms is to insert the weft yarn
at a high speed by injecting compressed air to weave fabrics. Thisis done using a large compressor, a process that requires thelargest amount of energy. Consequently, the key to energy savings
is how to minimize waste and efficiently insert weft yarn with little
air. In other words, using less air equals consuming less power.
Our JAT series of air-jet looms has consistently featured better airsaving performance that surpasses competitor products. For the
JAT810, innovations were made to such devices as the sub-nozzle,
which injects air, and the air path. All these innovations and more
led to a yet another reduction of approximately 20% in air
consumption compared with the previous JAT710, also a highly
energy-saving model.

Toyota Industries Report 2014

Fulfilling Expectations throughEver-Evolving Machine Performance andSincerity of Toyota Staff
As smartphones and a growing variety of electronic devices
rapidly gain popularity, demand for electronic components is
exploding all over the world. In response, we need tomaximize the capabilities of weaving machinery in ouroperations. For us, it is of extreme importance that we
efficiently manufacture top-quality cloths.
Toyota’s air-jet looms constantly meet such exacting
demands at a high level while its service staff quickly arrive■ Vario
Variousous Products T
That
hat Toyota Indus
Industries’
stries’ Air-Jet Looms Can We
Weave
eave
■ Air Consumption Volume20%

reduction

20%

reduction

JAT610

JAT710

JAT810(1996–2003)(2003–2013)(2013–)(Survey by Toyota Industries Corporation)

22

The Formosa Plastics Groupwas established by my father,
Wang Yung-tsai, and his older
brother, Wang Yung-ching, toproduce polyvinyl chloride
products. It has grown into
one of the largest
conglomerates in Taiwan, withbusinesses encompassing
petrochemistry, electronic
components, medical care,education, transportation and
Mr. William Wong
Chairman of the Formosa Plastics Groupother areas.
Executive Board
Our business with Toyota
Photo courtesy
Industries (hereinafter, Toyota)of cnYES
began in the 1970s when
http://www.cnyes.com
Formosa Chemicals & Fiber
Corporation, one of the Formosa Plastics Group companies,
purchased spinning frames from Toyota. Formosa Chemicals& Fiber has been a continuous user of Toyota’s air-jet looms
as well since installing the machine’s very first generation.
Our relationship further expanded in 1994 when NPC,
which manufactures electronic components, introduced air-jet looms to weave glass fibers.
Compared with common clothing fabrics, printed circuitboard cloths made of glass fibers require extremely delicate
quality management because the tiniest defect, which is
unrecognizable to the naked eye, could possibly cause
malfunctions. Toyota’s air-jet looms come equipped withhighly sophisticated technologies, such as for realizing
gentle weft yarn insertion by reducing air pressure to injectyarn even during high-speed operations, enabling us tomeet such rigorous demands and weave high-quality cloths.
Valuing such strengths, we decided to switch from weaving
machinery produced by other manufacturers that we wereusing. Currently, we operate a total of more than 3,000
Toyota air-jet looms at our factories.

Shirt

Denim

TowelsPrinted circuit board

23

on the scene when we need them andmake necessary adjustments so that themachines will operate in optimal
condition. We believe Toyota’s attitude ofalways being sincere in meetingextremely severe requirements for quality
and productivity in the manufacture ofelectronic components is reflected in the
product capabilities of its air-jet looms
and the level of its services.
Electronic components represent
one of Taiwan’s core industries, making
significant contributions to the global
economy. With Toyota as our essential
business partner, we intend to play acentral role in Taiwan’s progressively
growing electronics industry.

Toyota Industries Report 2014

Business Activities

Nan Ya Plastics Corporation’s glass fibers

Materials Handling Equipment

P

26 − 31

AutomobileP

32 − 37P

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

Logistics
Textile MachineryP

40

JAT710 air-jet looms in operation at Nan Ya Plastics■ History and Unit Sales of Our Air-Jet Looms(Units)■ Future Development

Model names

12,000

JAT810
JAT710
JAT61010,000

JAT600
JAT500

8,000

JAT
JA

6,000

4,000

2,000

0

24

In addition to technologies accumulated
to date, we are tapping into the world’s
top-level sensor technologies andinformation processing technologies
developed by Switzerland-based Uster
Technologies AG, which became amember of the Toyota Industries Group in
2012, in our efforts to create revolutionary
new products.
We are striving to further enhancecustomer trust by strengthening our
products along with honing our prompt
and meticulous service capabilities.

(FY) 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14

Toyota Industries Report 201425

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 2014
■ 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

■ Toyota Material Handling Group Organization and Brands
North America

Top: Region

TMHE

TMHNA

Middle: Organization
Org

Toyota Material Handling
EuropeToyota Material HandlingNorth America

EuropeTOYOTABT
CESAB
ALOMA*

TMHI
Toyota Material HandlingInternational

TOYOTABTRAYMOND

T
TMHE
TMHCN
T
TMHI
TMHI

TM
MHNA
TMHNA

TOYOTARAYMOND

TMHJ
Japan

China

TMHJ

TMHCN

Toyota Material HandlingJapan

TOYOTA

Bottom: Brand
Bra

TM
TMH
HI
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.

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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

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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: ALOMA 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

TMHI Distributor Conference

TIK’s new plant

30

Toyota Industries Report 201431

Business Activities

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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.
■ Engine Production(Thousand units)
700

600

500

400

■ Vehicle Production

Plastic Glazing Panoramic Roof for thePrius 움 (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 움, 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.

32

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
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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.
■ Compressor Sales(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)

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, commenced■ Worldwide Bases of Car Air-Conditioning Compressors (As of March 31, 2014)

TDDK
DNDE

GermanyGermanymany

Germany
Germany

YST

DICH

MACI

China

China
Ch
hina
na

USA
U.S.A.

DIAM

U.S.A.
U
SA

DSIT

Italy
talyy
TICO

DNTS

Japan

Ita
Italy
aly
SUBROS

TACK

India

China

TACG

USA
U.S.A.
TICA

U.S.A.
USA
TACI

Indonesia

DNBR

Bra
Brazilazil

Consolidated 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

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Toyota Industries Report 201435

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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

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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

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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

Toyota Industries Report 2014

Textile Machinery

Corporate Social Responsibility
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.
■ Air-Jet Loom Sales

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.

(Thousand units)
10

8

6

4

2

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

P

42

Corporate GovernanceP

43− 49Relationship with Our CustomersP

50− 51

TOPIC

Relationship with Our AssociatesP

52− 54

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.

Relationship with Our Business Partners

P

55

Relationship with Our Shareholders and Investors

P

56

0
(FY)

CSR Policy

Relationship with Our Local Communities

P

57− 58

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

41

Corporate Social
Responsibility

Business Activities

Environmental Initiatives

Financial Section /Corporate Information

CSR Policy/Corporate Governance

CSR Policy

Corporate Governance

Based on the CSR Policy formulated with the aim of realizing the Basic Philosophy that carries on
the spirit of founder Sakichi Toyoda, the Toyota Industries Group contributes to the harmonious andsustainable development of society and the Earth.

As a global company operating in various countries and regions, Toyota Industries seeks efficientmanagement while maintaining and enhancing the fairness and transparency of its corporate activities.

Guided by a strong ambition to “contribute to society andthe world through monozukuri (manufacturing),” Toyota
Group founder Sakichi Toyoda devoted himself to researchand creativity and made various inventions including thenon-stop shuttle-change Toyoda Automatic Loom, Type G.
The spirit of Sakichi is enshrined in the Toyoda Precepts,
formulated in 1935 and passed down today in our Basic
Philosophy, which we established in 1992 and revised in
1998. (See the inside cover of this report for details.)
The business environment surrounding Toyota Industries
is continuing to evolve rapidly and dramatically. Regardlessof changes in the business environment and values, we
remain unchanged in our belief that realizing our Basic
Philosophy is the cornerstone of the Toyota Industries
Group’s corporate social responsibility (CSR). Acting on thisbelief, in March 2009 we formulated and implemented the
Toyota Industries Group CSR Policy, which clarifies ourrelationships with stakeholders, namely customers,
employees, business partners, shareholders and local andglobal communities.
The CSR Policy is divided into nine areas, and the CSR
Committee* confirms and evaluates the implementation
status of this policy and promotes CSR activities.
* Chaired by the president, the committee convenes twice per year and consists ofdirectors, managing officers and audit & supervisory board members.

■ CSR Areas
CustomerFirst
SocialContributions

Environmental
Conservation

Respect for
Employees

Contributing to Sustainable
Development in Harmony
with Society and the Earth

Safety and
HealthFair andTransparent
Business
Activities

ComplianceManagementof Confidential
Information

Timely andProper
Disclosure

Toyota Industries Group CSR Policy (Summary)Preamble• We contribute to the harmonious and sustainable developmentof society and the Earth.
• We comply with local, national, and international laws andregulations as well as the spirit thereof.
• We believe that management interacting with its stakeholders isof considerable importance.
• We expect our business partners to support this initiative andact in accordance with it.
Customers• Based on our philosophy of “Customer First,” we provide
innovative, safe, and high-quality products and services.
• We endeavor to protect the personal information of customers
and everyone else with whom we are engaged in business, inaccordance with the letter and spirit of each country’s privacy
laws.
Employees• We respect our employees and encourage personal growth forour employees.
• We support equal employment opportunities and diversity forour employees and do not discriminate against employees.
• We strive to provide fair working conditions and to maintain asafe and healthy working environment for all our employees.
• We respect and honor human rights and do not use or tolerate
any form of forced labor or child labor.
• Through communication and dialogue with our employees,
we build and share the value of “Mutual Trust and Selfresponsibility.”• The management of each company takes leadership in fostering
an ethical corporate culture.
Business Partners• We respect our business partners and work to realize mutual
growth based on mutual trust.
• Whenever we seek a new business partner, we are open to any
and all candidates, regardless of nationality or size, and evaluate
them based on their overall strengths.
• We maintain fair and free competition in accordance with theletter and spirit of each country’s competition laws.
Shareholders• We strive to enhance corporate value for the benefit of ourshareholders.
• We provide timely and fair disclosure on our operating results
and financial condition.
Global Society/Local Communities[Environment]• We strive to develop, establish, and promote technologies
enabling the environment and economy to coexist harmoniously.
We work to reduce the effect of climate change and preserve
biodiversity.
[Community]• We operate our business so as to earn the trust of respective
communities.
• We pursue safer, cleaner technologies that meet the evolving
needs of society.
• We do not tolerate bribery and maintain honest and fairrelationships with government agencies and public authorities.
[Social Contribution]• We actively promote and engage in social contribution activities
that help strengthen communities and contribute to theenrichment of society.

level as well as relevant directors, managing officers andaudit & supervisory board members, deliberates on a variety
of issues concerning important management matters suchas our corporate vision, management policies, medium-termbusiness strategies and major investments.
Toyota Industries has a divisional organization system,with significant authority delegated to each businessdivision. For especially crucial matters, however, we haveestablished the Business Operation Committee to enable
the president to meet with the heads of each businessdivision regularly to monitor and follow the status of theirbusiness execution. At meetings of the Management
Council, directors, managing officers and audit &supervisory board members convene to report and confirm
the monthly status of business operations and share overall
deliberations at Board of Directors meetings and othermanagement-related information.
In addition, issues pertaining to human resources,quality, production, procurement and technologies are
discussed at the corresponding functional meetings. We
have also put in place committees to deliberate on more
specific matters, such as CSR, the environment and exporttransaction controls. These functional meetings andcommittees discuss important matters and action themes inrespective areas.

Basic Perspective of Corporate
GovernanceToyota Industries strives to enhance the long-term stabilityof its corporate value and maintain society’s trust by
earnestly fulfilling its CSR commitments in accordance with
its Basic Philosophy.
To that end, Toyota Industries strives to enhance its
corporate governance based on the belief that maintaining
and improving management efficiency and the fairness andtransparency of its corporate activities is of utmost importance.

Corporate Governance Structure

Implementation Structure
Toyota Industries convenes monthly meetings of the Boardof Directors to resolve important management matters andmonitor the execution of duties by directors. We also
appoint outside directors who are knowledgeable about ourbusiness operations. They attend meetings of the Board of
Directors and give opinions and ask questions as deemednecessary. Through this supervisory function of outside
directors, we ensure the legality and validity of the Board’s
decisions as well as directors’ execution of duties from an
objective perspective. The Management Committee, whichis composed of directors above the executive vice president

Audit & Supervisory Board System
Toyota Industries has adopted an audit & supervisory board

Shareholders’ Meetings
Selection/
Dismissal

Selection/
Dismissal

Selection/
Dismissal

Reporting*1: Functional
Meetings

Cooperation

Board of Directors

Reporting
ReportingAppointment/
Monitoring

Monitoring
Monitoring

Discussion/
ReportingPresident
Management
Committee(

Deliberates on importantmatters frommanagement’s perspective

Directives

Human Resources

CSR

Audit &
Supervisory Board

Independent Auditors

Accounting
Audit*2: Committees

ReportingBusiness Operation
Committee) (Follows up on theexecution ofbusiness operations

Discussion/ Directives
ReportingDirectives

Management
Council) (Reporting

Reports on andconfirms execution ofbusiness operations

Directives)

Reporting(monthly)

Directives
Reporting
Reporting

Functional
Meetings*1
Committees*2
Policies

Directors/Managing Officers

Quality

Environmental

Audit &
Supervisory
Board
OfficeProduction

Export Transaction
Controls

Monitoring

Procurement

Safety and HealthTechnologies

Profit Improvement

Audit Dept.

Reporting Internal Reporting
Audit

These entities deliberate andfollow up on issues in respective areas.

Business Divisions/In-House Company/Departments
Subsidiaries/Affiliates(As of June 13, 2014)42

Toyota Industries Report 201443

Corporate Social
Responsibility

Business Activities

Environmental Initiatives

Financial Section /Corporate Information

Corporate Governancesystem. Two full-time audit & supervisory board members
and three outside audit & supervisory board members
attend meetings of the Board of Directors to monitor the
execution of duties by directors. At the same time, meetingsof the Audit & Supervisory Board are held once a month todiscuss and make decisions on important matters related toauditing. The full-time audit & supervisory board members
carry out auditing by attending primary meetings andreceiving reports directly from directors. Additionally,
we have assigned dedicated personnel, while audit &supervisory board members monitor the legality andefficiency of management through collaboration withindependent auditors and the Audit Department.

Exchange Law (so-called Japanese Sarbanes-Oxley Act(J-SOX)), we have established and appropriately operated
an internal control system to maintain the reliability offinancial reporting. The system’s status and progress arereviewed by the Audit Department and audited byindependent auditors. We determine which Toyota Industries
Group companies fall within the scope of J-SOX based on
the degree of impact on the reliability of financial reporting.
We determined that our internal controls over financial
reporting as of the end of fiscal 2014 were effective, andaccordingly, submitted an Internal Control Report in June
2014. The report was reviewed by independent auditors andjudged fair in their Independent Auditors’ Report.

Appointment of Independent Director and
Audit & Supervisory Board Members

Compliance

As a publicly listed company, Toyota Industries strives toensure the fairness and transparency of management.
Following the Securities Listing Regulations stipulated
respectively by the Tokyo Stock Exchange and Nagoya
Stock Exchange, to further enhance our corporate
governance Toyota Industries has appointed one outside
director and two outside audit & supervisory board
members who are deemed to be independent and have noconflicts of interest with our shareholders.

Internal Control System
In accordance with the Corporation Law of Japan, in May
2006 Toyota Industries’ Board of Directors adopted the
Basic Policies for the Establishment of an Internal Control
System (Basic Policies) to ensure compliance, risk
management as well as the effectiveness and efficiency ofbusiness operations after giving consideration to eachbusiness segment’s annual policies and day-to-day routine
management. The CSR Committee, at its meeting held inMarch, assesses the progress made in implementing the
Basic Policies in the year under review and determines
actions for the coming year, including reviewing theimplementation structure and enhancing day-to-day
operational management.
Furthermore, based on the Financial Instruments andAnnual financial reportprevention of misconduct to representatives from thebusiness partners of Toyota Industry (Kunshan) Co., Ltd.
(TIK), our largest production base in China.

CSR Committee

Report activities

Give directives

Compliance Subcommittee
Departments in charge of legal compliance: 12
Supporting department: 1

Toyota Industries
Corporation

Consolidated
subsidiaries in Japan

Consolidated subsidiaries
outside Japan

Compliance committees

Compliance officers*As of March 31, 2014

Four Pillars of Compliance Activities
We believe that compliance means both adhering to laws
and regulations and observing ethics and social norms.
In order to ensure compliance, it is vital that we raise theawareness of each and every employee.
Under the strong leadership of top management, we
promote compliance throughout the Toyota Industries Group,
including consolidated subsidiaries in and outside Japan, by
formulating a Code of Conduct and thoroughly informing
employees together with checking and monitoring compliance.
■ Four Pillars of Compliance Activities

4

3

Checking
andMonitoring

Thoroughly
Informing
Employees

CSR selfassessment

Education on
relevant laws
and regulations

Audit

2

1

Rules/
Policies

Leadership/
Organization

Employee Codeof Conduct

Declaration by
the presidentInternal rules

Compliance
Committee

Manuals(led by executive vice president in charge of administration*)as a subordinate organization to the CSR Committee. Every
year, the subcommittee formulates an action policy andconducts follow-up checks on its progress on a quarterly basis.
The Toyota Industries Group strives to further strengthen
compliance initiatives. In fiscal 2014, we held a conference inNorth America, in which compliance officers from 16 bases
attended and shared information on their respective
compliance-related activities. They also discussed theestablishment of a compliance committee at each base,with the intent of facilitating their individual, voluntarycompliance initiatives.
In China, we held aworkshop on China’s
labor laws for top
management of allbases within the country.
Other compliance efforts
included providing
education on theWorkshop on China’s labor laws

Formulation of Code of Conduct andDissemination
Toyota Industries has formulated and distributed to all
employees the Code of Conduct, which serves as conduct
guidelines that should be observed by employees. In April
2014, we made revisions to the code in order to make it
more readily comprehensible for employees. Revisions
included organizing the contents by stakeholder, adding
up-to-date key terms such as the Safety Vision*1 and safe
driving standards*2 and defining detailed action guidelines toensure compliance with rules and regulations related toantitrust laws and anti-bribery laws.
Consolidated subsidiaries worldwide are also
formulating, delivering to and educating employees on theirown Code of Conduct matched to their respective businesslines and corporate cultures. Toyota Industries’ 33
consolidated subsidiaries in Japan and 69 consolidated
subsidiaries outside Japan have already created their own
Code of Conduct and have been working to instill anawareness among their employees.
*1: Formulated in July 2013. See page 52 for more details.
*2: Internal standards stipulated for the purpose of ensuring safe driving and preventing
traffic accidents

Thoroughly Informing Employees about
Applicable Laws and Regulations
Toyota Industries provides compliance education to all levelsof employees. This includes providing required legal
knowledge to employees according to their job ranks orpositions, familiarizing them with the emergency procedures■ Compliance Officers (outside Japan) and Compliance Committees (in Japan) (As of March 31, 2014)■ Employee Code of Conduct

Compliance officer
in China

Wang Xinxing

Establishment and Reinforcement of
Implementation Organization■ Internal Control Assessment System (Based on J-SOX)
Internal control activities undertaken by eachdepartment and consolidated subsidiary(Establishment and operation of internal controls)■ Organization for Promoting ComplianceToyota Industries Corporation

Employee Code of Conduct

Europe:37 companies

April 2014

North America:
18 companies

Asia: 11 companies

To promote compliance throughout the Toyota Industries
Group, we have established the Compliance Subcommittee
Japan: 33 companies

Internal control reportCompliance officer
in South America

Compliance officer
in India

Improvement of Detection of Review of internal
controls byinternal controls deficiencies
Audit Department

T R Nagaraj

Australia: 1 company

Edson
Masayuki
UhiedaSouth America:
3 companies

Internal Control Audit Report
Audit on internal controls by independent auditors
North America Compliance Officers Conference participants

44

Toyota Industries Report 201445

Business Activities

Corporate Social
Responsibility

Environmental Initiatives

Financial Section /Corporate Information

Corporate Governance■ Compliance Education Provided (As of March 31, 2014)
Toyota Industries
Executive training

Rank-based (clerical, technical)
Training by function

Training for affiliated companies

Conducted training for newly appointed executives and legal seminars for executives

Ongoing initiative

Promoted group training via executive training seminars, subcontractor safe
work training and public relation division training, and through visits to dealers★1,800 employees★2,400 employees★2,800 employees
participatedparticipatedparticipatedOngoing initiative(FY)★16,100 employees
participated2012that should be followed upon the occurrence of a problem
and educating them on risk management. To new or young
employees, in particular, we provide easy-to-understandguidance on “what to do” and “what not to do” in order toinstill compliance awareness based on laws and corporate
ethics, using our Code of Conduct as an instructional
material.
In order to cultivate a deeper understanding ofcompliance among employees, we introduce cases ofpossible compliance violations in internal newsletters,
providing commentaries on problem areas in detail. In aneffort to create an environment in which employees educate
themselves about compliance and related issues on theirown, starting from fiscal 2014 we are disseminatinge-learning materials on one specific theme every month.
■ Example Topics of e-Learning Materials
Contents

Target audience2013★15,400 employees
participated2014

Basic Perspective

We recognize that the personal information of customers,
employees and business partners as well as information
concerning our technologies and sales activities are assetsthat need to be protected. Accordingly, we are making ourutmost efforts to safeguard confidential information andstrengthen its management as one of the CSR areas.

Based on the Basic Policies for the Establishment of anInternal Control System, which was set up by the Board of
Directors in May 2006 in compliance with the Corporation
Law of Japan, Toyota Industries is working to strengthen
regulations and a structure to promote risk management.
We regard the following two aspects as the basics of risk
management.
(1) Incorporating measures to prevent and reduce potential
risks into daily routines and following up on the progressof implementation(2) Ensuring quick and precise actions to minimize the impact
on business and society when a risk becomes apparent

Ongoing initiative2015

Checking and Monitoring Compliance
In order to monitor the status of compliance, we request
internal departments and our consolidated subsidiaries inand outside Japan to perform a compliance self-assessment.
Toyota Industries’ subsidiaries answer a checklist
comprised of 60 to 250 items defined for each of theapplicable laws. If any of these items are found to be
insufficient, each responsible department and respective
subsidiaries work together to make improvements.
We also operate a compliance hotline that allows
employees and their families to seek advice on compliancerelated matters without being exposed to negative
consequences, as well as to make adequate responses.
This compliance hotline is cited in our Code of Conduct, andwe regularly hand out a leaflet to subsidiaries’ employees toinform them of the service.
■ Compliance Hotline Leaflet

1 What is compliance?
2 Environment (water quality and waste)
3 Traffic safety

Basic Perspective

Implementation Structure

Conducted training on the Code of Conduct, safety, etc.
★11,900 employees
participatedRisk Management

Ongoing initiative

Promoted training on quality, safety, the environment, labor, management ofconfidential information, export transactions, subcontracting and antitrust laws
★9,200 employees★9,900 employees★12,000 employees
participatedparticipatedparticipated

Consolidated subsidiaries
in JapanManagement of Confidential Information

All employees

4 Japan’s Personal Information Protection Law
5 Compliance hotline

Toyota Industries has set up the Information Security
Subcommittee (led by a director in charge of generaladministration*1) as a subordinate organization to the CSR
Committee to promote proper management of confidential
information, taking appropriate actions against the leakageof confidential information and complying with the Unfair
Competition Prevention Act and the Personal Information
Protection Law.
To thoroughly implement the initiatives adopted by thesubcommittee, we appoint information security managers*2
and information security administrators*3 at eachdepartment. We strive to raise awareness about information
security among their staff by holding workplace meetingsand conducting self-checks regarding their information
security practices.
Examples of such activities include attaching a security
cable with a lock to all PCs to prevent employees fromtaking their PCs off the premises without permission,
systemically restricting the copying of electronic data onrecording media, monitoring email correspondences,
applying more stringent restrictions on taking photographson company premises and regularly reviewing rules for
management of confidential information.
In addition, we collaborate with other Toyota Group
companies to carry out “All Toyota Confidentiality
Management Month” activities in May and October. As partof this effort, we are working to discourage and monitor
unauthorized carrying out of PCs and recording media.
Our consolidated subsidiaries in and outside Japan also
appoint respective information security managers andinformation security administrators. We also have formulatedcommon guidelines concerning management of confidential
information and follow
up on their activities ona periodic basis.

Implementation Structure
Business divisions and other departments at the Head
Office develop and promote annual action policies that
integrate measures to prevent and control risks related toquality, safety, the environment, personnel, exporttransactions, disasters and information security. Progress is
assessed and followed up by each functional management
entity such as the CSR Committee and the Environmental
Committee. At the same time, functional departments at the
Head Office such as those responsible for quality, safety andthe environment formulate rules and regulations and manuals
from a Group-wide perspective, including consolidated
subsidiaries. By confirming and following up on the progress
through operational audits and workplace inspections, they
provide support for raising the level of risk management at
each business division and consolidated subsidiary.
Our Crisis Response Manual provides specific examplesof significant risks and lays out basic rules for appropriate
decisions and actions when a risk becomes evident or amajor problem occurs. This manual is distributed to
executives and those inmanagerial positions of■ Crisis Response Manual
Toyota Industries as well as
to top management at
consolidated subsidiaries asa means of facilitating risk
management as the Toyota
Industries Group.

*1: As of March 31, 2014
*2: Head of each department*3: A person within the department,
appointed by the head

The ninja character on the right is a corporatecharacter selected for promoting compliance.
Internal newsletter46

Toyota Industries Report 201447

Business Activities

Corporate Social
Responsibility

Environmental Initiatives

Financial Section /Corporate Information

Corporate Governance

Response to Possible Major Earthquake
We consider the occurrence of a major earthquake in andaround Japan as one of the most significant risks andimplement disaster prevention measures that focus on threebasic policies, namely placing maximum priority on human
life; placing top priority on the recovery of local communities;
and ensuring the quickest possible recovery.
Furthermore, we divide these measures into the three
categories of “mitigation,” “initial response to be followed
immediately after the disaster” and “restoration of production,”and are respectively making Company-wide efforts.
In fiscal 2014, we formulated a business continuity plan
(BCP) in each category and undertook activities accordingly.
More specifically, we upgraded disaster prevention drills at
each plant, established a disaster prevention organizationthat oversees Company-wide initiatives and simulated
responses in the event of a disaster.

Implementation Structure
The Disaster and Fire Prevention Council devises overall
policies while the Disaster Prevention Measures Promotion
Council monitors progress. Specific measures areformulated and implemented by working groups (WGs)
consisting of members of the functional departments at the
Head Office and representatives from each plant.
■ Structure for Promoting Disaster Prevention Measures
Meetings of Disaster and Fire
Prevention Council (twice/year)

Chairman: Central general safety andhealth supervisor(Executive Vice President)

Meetings of Disaster Prevention
Measures Promotion Council(six times/year)

Chairman: Head of the General Affairs Department(Head Office)*

Admin Office

Mitigation WG(once/month)

InitialResponse WG(once/month)

Production
Restoration WG(once/month)

Procurement
WG(twice/month)Business
Continuity WG(once/month)2) Buildings
We created a prioritized list of buildings requiring antiseismic
treatment and have been carrying out reinforcement work.
3) Prevention of Secondary Disasters
In fiscal 2014, the disaster prevention team of the Head
Office conducted genchi genbutsu (go and see for yourself)
inspections based on the Disaster Mitigation Plan and Initial
Response Action Guidelines to check the validity and full
implementation of these measures at each plant.

after occurrence to the following day and reaffirmed
response procedures and the allocation of roles. We seek
to raise the level of our response both in taking action in
emergency situations and readiness in peacetime.

Drills at the plant headquarters

On-site inspection at the Anjo Plant in Aichi Prefecture

2 Initial Response
1) Initial Response Procedures
Placing maximum priority on the protection of human life, we
formulated and disseminated initial response procedures tobe followed by employees immediately after a disaster.
2) Safety Confirmation System
Since July 2011, we have operated a safety confirmation
system to account for employees in case of an earthquake.
When an earthquake with a magnitude of 5 or greater
occurs, this system automatically sends email messages to
employees’ cell phones and other devices, to which
employees send replies together with information on theirsafety status.
3) Disaster Drills(a) Upgrading Disaster Drills
We set up a new disaster prevention organization withclearly defined functions and roles at each plant andbase. In addition to conventional disaster drills, we
conducted more practical drills centered ontransportation and rescue of injured persons.

4) Strengthening Activities to Raise Awareness for
Disaster Prevention
In July 2013, we inviteda consultant to give alecture on disasterprevention for themembers of the Disasterand Fire Prevention
Council, including
executives, as well as
Lecture on disaster prevention
the personnel tasked
with disaster prevention activities at consolidated
subsidiaries. Through the lecture, participants reviewed
Toyota Industries’ disaster prevention measures based on
the lessons learned from the Great East Japan Earthquake.
We also set up a disaster prevention corner at suchcompany events as Toyota Industries’ annual Aozora Ichibacross-organizational exhibition to share best practices for
improvement and various other initiatives undertaken ateach Group company as well as the Shokki Festa, a festival
for promoting interaction with local communities. In this way,
we sought to instill a higher awareness in and encourage
each employee to take stronger disaster prevention
measures not only at work but also at home.

* As of March 31, 2014

Aozora Ichiba

Primary Measures for Disaster Prevention
1 Mitigation Measures

Activities in this area primarily focus on disaster prevention
measures concerning equipment and other devices toprotect the lives of employees.
1) Equipment
We developed quake resistance standards for equipment
within plants and implemented measures to avoid turningover, falling and sudden sliding of equipment.

48

Toyota Industries Report 2014

Drill for rescuing injured persons

Drill for initial firefighting(b) Drills at Disaster Prevention Response Headquarters
Drills that were conducted in fiscal 2013 were again
carried out at the disaster prevention response
headquarters, which coordinates Company-widemeasures in case of a disaster. We also conducted drills
at the plant headquarters, which oversees plant-level
activities in emergency situations. Through these drills,
we simulated earthquake responses from immediately

Shokki Festa

3 Restoration of Production
To meet the expectations of society and customers in andoutside Japan, Toyota Industries has been implementing
measures to quickly restore production operations. Startingfrom fiscal 2011, we have been enhancing function-based
initiatives by setting up a Company-wide Production
Restoration WG. Since September 2012, the Procurement
WG, which makes up the organizational structure forpromoting Company-wide disaster prevention measures,has been working on initiatives concerning the supply chain.

1) Initiatives Related to Organization and Personnel
Assignments(a) Organization for Restoration
Anticipating emergency situations and a prolonged
restoration period, we set up a structure in which two or
more responsible persons (leader and co-leader) areappointed at the Head Office and respective departmentsin each business division.
(b) Responsible Personnel during Restoration
We have established a structure to quickly initiate
measures to restore production by selecting trained
persons capable of taking the lead in restoration activities
and making adequate responses at a place of disaster aswell as restoration personnel having appropriate
experience, knowledge and skills.
2) Pre-Disaster Mitigation Measures
Each business division carries out Production Restoration
WG activities to promote pre-disaster mitigation measures.
Members from various departments tasked with restoringproduction participate to identify latent risks and issues andengage in the following activities.
(a) Infrastructure Restoration
We are reinforcing facilities and equipment for such
utilities as electricity, gas and water as well as for
information systems, all of which are vital for restoringproduction, along with undertaking measures forvulnerable spots in wiring and pipework.
(b) Formulating Production Restoration Procedures
We have formulated production restoration proceduresfor the Company and individual business divisions. The
procedures lay out the target timeline and clearly define
implementation items and time allocation for each item at
departments tasked with restoration work.
(c) Production Equipment
Upon clarifying processes that should be prioritized forrestoring production and identifying latent risks andissues, we are considering methods of restoration andmaking a list of required materials and supplies.
(d) Logistics
We are examining the infrastructures around each plant
and review the results to define safe logistics routes.
(e) Backup Logistics Support
We have clarified the division of labor and implementation
items among departments tasked with providing
production restoration support, including how to obtainfood and water, manage work shifts and clarify
commuting routes and means of transportation.

Production restoration
workshop (identifying risks
and contemplating
countermeasures)49

Corporate Social
Responsibility

Business Activities

Financial Section /Corporate Information

Environmental Initiatives

Relationship with Our Customers

Relationship with Our Customers
business divisions. Under these efforts, we havestandardized procedures to ensure the specified level ofquality and formulated related guidelines.
* As of March 31, 2014

“A product should never be sold unless it
has been carefully manufactured and has
been tested thoroughly and satisfactorily.”
Carrying on the spirit of founder Sakichi Toyoda, Toyota
Industries strongly believes that quality is the lifeblood of acompany. Focusing on quality first and ensuring customer
safety and reassurance are our most important responsibilities
to our customers and form the basis of our CSR approach.
Toyota Industries strives to maintain and improve the total
quality of our corporate activities, which encompasses“product quality,” “marketing quality” and “management
quality.” “Product quality” is embodied in the safety, ecofriendliness, durability, ease of use and workmanship of our
products, while “marketing quality” entails excellent sales,
service and other aspects in addition to these attributes and“management quality” further enhances our overall corporate
image and brand strength in terms of all of these attributes.
■ Types of Quality Sought by Toyota Industries

ent
em
nag
lity
g
Ma lity
qua
turin
qua
ufac
ting
Man lity
r ke
Ma
qua

Quality levels that
customers truly
expect

経営
品質

営業
品質

●Sales●Service●Logistics

製造
品質●Workmanship

Product quality●Safety●Eco-friendliness●Durability●Ease of use

設計
Design
品質
quality●Brand strength●Corporate image

Manufacturing capabilities“We should express our gratitude to ourcustomers by providing them our best
quality products.” (from Toyota Industries’ Quality Guidelines)

cause is identified from both technical and structural aspects,
and if deemed necessary, the new product development
system itself is reviewed to prevent recurrence.

■ Company-Wide, Horizontally Aligned Quality Assurance
Activities
Quality Vision

Activities Based on the Quality Guidelines
Quality forms the basis of our operations and is essential inattaining the goals of our Vision 2020. As such, weformulated our Quality Vision 2020, which defines ourphilosophy in ensuring quality.

Quality Vision 2020
All members in the Toyota Industries Group placeutmost emphasis on quality first andcontinuously supply attractive products/services
that anticipate global customers’ needs.
To achieve the goal of this vision, we issue the Quality
Guidelines, which identify priority quality-related issues to be
implemented in each fiscal year, to all production bases inand outside Japan. The implementation status of theseguidelines is reviewed by top management at the Quality
Functional Meeting and the Quality Confirmation andProactive Prevention Meeting, both chaired by the executive
vice president in charge of quality control*, for identifying
additional issues and devising countermeasures. Issues
raised are followed up at meetings of the Company-wide
Council of Heads of Quality Assurance Departments chairedby a quality control department head*. The president also
checks on the outcome of these activities through genchi
genbutsu inspections.
For critical quality issues, we enforce Company-wide,
horizontally aligned activities to prevent both recurrence inthe responsible business divisions and occurrence in other

Placing top priority on our “Customer First” philosophy,
Toyota Industries undertakes product development thatmeets customer expectations.
At Toyota Industries, development of a new productentails defining specific goals to incorporate quality in every
stage from product planning and design to production
preparation, production, sales and after-sales services.
We perform a design review (DR), which allows a product toproceed to the next stage only when a responsible businessdivision head examines and approves whether the producthas reached the target quality level.
Should a defect occur after the product launch, the quality
assurance departments of each business division immediately
devise necessary measures. At the same time, a probable

Quality Guidelines

Quality Functional Meeting
Quality Confirmation and Defect Prevention Meeting■ R-Map
Probability of occurrence

Adhering to a quality first approach, Toyota Industries strives to realize monozukuri (manufacturing)that quickly responds to the diverse, ever-changing needs of customers.

5 Frequent

C

B3

A1

A2

A3

4 Probable

C

B2

B3

A1

A2

3 Occasional

C

B1

B2

B3

A1

2 Remote

C

C

B1

B2

B3

1 Improbable

C

C

C

B1

B2

0 Rare

C

C

C

C

C

None

Negligible

Marginal

CriticalCatastrophic

0

I

II

III

IV

Level A

Level B

Level C

Company-wide Council of Heads of Quality Assurance Departments
Severity of harmMaterials
Handling
Equipment

TextileMachinery

Development of new products

Compressor

Electronics

VehicleEngineProviding Support to Business Partners•Activities to improve DR standards

Prevention of occurrence and recurrence •Working-level Committee for Recurrence Prevention
Quality assurance by business partners •Quality audit at business partners
Product safety and reassurance•Product Safety Promotion Committee

Human resources development•Education on statistical quality control (SQC),
QC Circle Promotion Committee

Initiatives to Ensure Product Safety
As one priority issue under the Quality Guidelines to meetcustomers’ expectations for safety and reassurance, we
reinforced the system to minimize risks at the design stage
based on the assumption that customers make use of our
products in diverse ways, including foreseeable misuse.
In an effort to raise the level of our Company-wide
activities, we have established the Product Safety Promotion
Committee comprising representatives from the engineeringand quality assurance departments of each businessdivision to share best practices throughout the Company.
In each business division, the members of the committee
take the lead in organizing a Divisional Product Safety
Promotion Meeting, which undertakes activities covering allfunctional areas from engineering and quality assurance tosales and after-sales services.
When developing new products, we use the R-Map risk
assessment tool, which was developed by the Union ofJapanese Scientists and Engineers and recommended by
Japan’s Ministry of Economy, Trade and Industry, to evaluate
associated risks. If the results of an assessment fall within
level A or B, we incorporate additional risk reduction
measures into our products and seek to keep risks to an
absolute minimum. In this way, we offer products seeking
the highest level of safety to our customers.

Improving the quality of our products requires the upgradingof quality control capabilities of our business partners in andoutside Japan. For this reason, we work to augment our
supply chain primarily by means of an annual quality audit.
Our annual quality audit is based on 28 audit items
spanning nine areas, including quality assurance systems
and response to defects. Our certified auditors assess these
items and identify strengths and weaknesses of eachbusiness partner. We also seek to raise the level of quality
assurance by sharing best practices among business
partners. Moreover, our business partners make voluntary
efforts to analyze discrepancies between the results of theirself-assessment and those of our assessment, thereby
fostering a culture to continue to progress on their own.

Promoting Human Resources Development
Toyota Industries provides systematic quality education to all
employees to help them acquire quality assurance skills
needed in actual operations. In the basic education program,
employees gain a perspective and learn the concepts ofquality control (QC), basic kaizen (improvement) techniquesand how to proceed with kaizen activities by utilizing ouroriginally developed textbook that describes the quality
assurance approach of Toyota Industries. After completingthe basic program, they move on to practical training
tailored to the specific needs of their respective workplaces.
Our production bases outside Japan also promotekaizen efforts and development of human resources throughQC circle activities.
Focusing our efforts on the area of human resources
development, we intend to combine the Group’s strengths
and facilitate quality assurance activities globally to achieve
the level of quality that exceeds customers’ expectations.

Quality inspection by top management

50

Toyota Industries Report 201451

Business Activities

Corporate Social
Responsibility

Environmental Initiatives

Financial Section /Corporate Information

Relationship with Our Associates

Relationship with Our Associates
Our ultimate goal is to create safe and healthy workplaces where each and every associate can
exercise their diverse potentials and play active roles.

Building a Safety-Oriented Culture That
Aims for Zero Industrial Accidents
In accordance with our fundamental policy of “creating
people capable of autonomously maintaining occupationalsafety and health,” Toyota Industries strives to prevent
industrial accidents and occupational disorders as well as
realize better work environments.
In fiscal 2014, we reflected on what we have achieved
through safety and health activities to date and accelerated
our efforts in attaining an even higher level of safety that
forms the basis of our business operations.
Based on the idea of building “a homelike atmosphere atwork that is warm and friendly” as stated in the Toyoda

Precepts, we had several long, thorough discussions about“the true meaning of safety” and “the form of safety weseek” and formulated the Safety Vision in July 2013.
One of the top priority issues in fiscal 2014 was to instill
this Safety Vision among all associates. With top
management declaring the Company’s commitment tosafety, managers and supervisors took the lead and becamea role model for others in enforcing required action.
With a view to communicating the Safety Vision andconsequently reinforcing our idea of safety within the Toyota
Industries Group, we also held workshops mainly for leaders
responsible for ensuring safety and health in ourconsolidated subsidiaries worldwide.
In the future, we will enhance our safety awarenessfurther and step up safety and health activities.

Initiatives for Health Management andImprovement
As a task for the medium term, we are promoting associate
health improvement programs to counter risks associatedwith aging and greater stress.
Specifically, we proactively provide health guidance toprevent lifestyle diseases for persons with metabolic
syndrome and actively encourage follow-up after annual
health checkups. We also conduct periodic age-based
health education for all associates to maintain and promote
their health and wellness.
Mental health care activities include providing self-care/line-care education and setting up a health-related hotline.
We have also successfully worked to build closer
collaboration with external medical institutions, prevent
relapses by launching a return-to-work support program forpersons on long-term leave and take preventive measures
by offering follow-up support to persons assigned to new
positions.

Enhancing Team Strength
Toyota Industries believes that enhancing team strength isvital to forming a dynamic workforce and achieving
sustainable corporate growth.
We believe that team strength is made up of “technicalskills” that form the basis of manufacturing operations,“management skills” to make maximum use of technicalskills and “spirit of harmony” that supports both. Whilefurther enhancing our team strength, we are striving toextend and hand it down beyond all business domains,
generations and geographic regions.

Technical Skills

Management Skills• TQM• TPM, etc.

• Expertise• Skills• Know-how
Team Strength

LeadershipTo pursue improvements
thoroughly and continuously

Spirit of Harmony

Teamwork
Well-rounded humanity

Workshop for affiliated companies in Japan

Workshop for affiliated companies outside Japan

Physical fitness measurement conducted during age-based health education

Safety Vision
Each and every associate in the Toyota Industries Group
guided by the spirit of our corporate creed,aims to create a corporate culturethat places a top priority on maintaining safety in all areas
and focuses on mutual courtesy and safety
as well as realizing workplaces
where associates work each daywith a sense of happiness and pride.
Seminar held as part of age-based health education

July 1, 2013

■ Technical Skills
We are currently working to enhance the skills of ourtechnical staff primarily by providing training programs at theTechnical Learning Center, one of our training facilities, togain skills to support manufacturing. At the 51st National
Skills Competition held in November 2013, the Toyota
Industries team won one gold medal in the “mechatronics”
category and received prizes in the categories of“mechanical device control,” “structural ironsmith,”“electrical welding” and “lathe,” thereby attaining medals
for the 13th
consecutive
competition. We
believe this is theresult of our
success at
nurturing basic
manufacturing skills
and cultivating topcaliber specialists.

51st National Skills Competition

52

Toyota Industries Report 201453

Business Activities

Corporate Social
Responsibility

Environmental Initiatives

Financial Section /Corporate Information

Relationship with Our Associates/
Relationship with Our Business Partners

Relationship with Our Business Partners■ Management Skills
We conduct work procedures training on problem solving
targeting associates in administrative and engineering fields
with the aim of sharing our thinking and values regarding
work procedures and improving their problem-solving
capabilities. This training is also provided at subsidiaries
outside Japan in an effort to hone these management skills
throughout the Toyota Industries Group.
■ Spirit of Harmony
Toyota Industries is creating a bright, energetic and caring
work environment that fosters a dynamic workforce andallows every member to demonstrate his or her capabilities
both as an individual and as a team. Throughout the world,
we are proactively encouraging communication not only
during work hours but also through social gatherings, sports
days, summer festivals, Group-wide ekiden long-distance
relay races and cheer squads for various sports events.

Establishing Work Environments Where
Diverse Human Resources Can Play
Active Roles
We are implementing a variety of measures to create work
environments where a diverse range of human resources
can fully exercise their capabilities. These measures include
supporting managing both work and family, supporting theemployment of persons with disabilities and creating a work
environment in which older associates can play active roles.
■ Support for Managing Both Work and Family
As part of efforts to offer an easier-to-work environment for
associates managing both their work and family and help
them develop their career, we have introduced atelecommuting system that allows them to perform part oftheir work at home.
■ Employment of Persons with Disabilities
We respect the idea of people with and without disabilities
working together and sharing life and work values. Under
this basic policy, we continue to employ persons withdisabilities every year. They are assigned to a variety ofsections and work with other members to perform theirdesignated tasks. In fiscal 2014, the ratio of associates withdisabilities on a non-consolidated basis was 2.13%.

Ekiden long-distance relay race

■ Creating a Work Environment for Older Associates
Since the introduction of a re-employment system for
associates who reach the mandatory retirement age of 60,
the number of associates who choose to continue working
has been increasing. In response, we hold “55 Career
Training” for associates reaching the age of 55 to give theman opportunity to envision life and work after the age of 60
and think about how they should work during the remaining
pre-retirement period.

Toyota Industries encourages open procurement and seeks co-existence and co-prosperity with ourbusiness partners based on mutual trust. We also facilitate environmentally preferable purchasing,
CSR-oriented procurement practices and disaster prevention activities for a possible major earthquake.

Fair Competition Based on an Open Door
PolicyWe have a fair entry process that allows all potential
business partners, regardless of nationality, size andexperience, the same opportunity to offer us their products
or services through our Website to achieve broad and open
procurement.

Procurement page on our Website

We comprehensively evaluate our business partners
based on quality, price, their adherence to delivery times,
technological capabilities and company stability. We also
assess their initiatives for safety, the environment andcompliance as we strive for the timely and stableprocurement of excellent products at lower costs based onfair business transactions.

Co-Existence and Co-Prosperity Based on
Mutual Trust
We work hard to realize co-existence and co-prosperity withour business partners based on mutual trust. We hold annual
procurement policy meetings and an executive seminar for
major business partners to gain their understanding andcooperation. In order to consistently procure better products,
we also conduct quality and technical skills training programs
and safety and health education as well as provide guidance
directed toward kaizen at business partners’ production sites.

Reducing Environmental Impact throughEnvironmentally Preferable Purchasing

Cheer squad in action at a company sports event

55 Career Training

In order to create environmentally friendly products, we aim to
procure parts, materials and equipment from business
partners that give sufficient consideration to the environment.
Our Environmentally Preferable Purchasing Guidelines,
which we have formulated to enforce “green” purchasing,

apply not only to parts and raw
materials but also to packaging
materials. By working toprevent prohibited substancesof concern from being mixed
into our products andassociated packaging,
we deliver even greater safety
and reassurance to customers
along with environment-friendly
products.
The guidelines also clarify
Toyota Industries’ point of viewEnvironmentally Preferable
Purchasing Guidelines
and initiatives regarding theprotection of biodiversity, whichis included in our Fifth Environmental Action Plan, and seek
the understanding of business partners.

Localization of Business for Good
Corporate Citizenship
In view of increased local production outside Japan,
we promote procurement from local business partners inorder to contribute to the local community throughconsolidated subsidiaries.

Disaster Prevention Activities for Possible
Major Earthquake
We engage in disaster prevention activities in anticipation ofa major earthquake in Japan. To improve our preparedness
for resuming the supply of products to customers at theearliest possible opportunity in the event of a disaster, we
are making concerted efforts with business partners toensure the stable supply of parts and raw materials during
the restoration of production.
More specifically, we held seminars to cultivate a deeper
understanding on the importance of disaster prevention andconducted disaster mitigation workshops (tabletop exercises)that help business partners
formulate and implement
their own mitigation plans.
In order to render their
mitigation plans effective,
we share information with,
provide support to andcheck progress withbusiness partners.
Disaster mitigation workshop

54

Toyota Industries Report 201455

Business Activities

Corporate Social
Responsibility

Environmental Initiatives

Financial Section /Corporate Information

Relationship with Our Shareholders and Investors/
Relationship with Our Local Communities

Relationship with Our Shareholders and Investors

Relationship with Our Local Communities

We aim to obtain an appropriate company valuation in stock markets through timely and appropriate
information disclosure while promoting good communications with shareholders and investors.

With a view toward fostering community growth and creating an enriched society, we actively undertakesocial contribution activities in every region where we do business.

Basic Perspective
Toyota Industries continually carries out timely andappropriate information disclosure for shareholders andinvestors. In this way, we raise management transparency
so that we obtain an appropriate company valuation in stock
markets. We provide not only information required under
disclosure laws and regulations but also information on ourmanagement policy and business activities. Also, we strive
to promote communications with shareholders and investors
and feed back their comments to executives and relevantbusiness divisions to reflect them in our business activities.

requesting a meeting, we visit some of them to explain
our management policies and business overview. We also
participate in conferences hosted in Japan by securities
companies and hold individual meetings.
Toyota Industries provides a variety of information,
including financial information as well as an overview of ourbusiness and various initiatives, via the company Website.
We use RSS feeds (in Japanese) to promptly provide thelatest information.

Activities as a Good Corporate Citizen
Based on “Respect for Others” as described in our Basic
Philosophy, we strive to fulfill our role as a good corporate
citizen in every region where we do business and actively
engage in social contribution activities to realize an enriched
and healthy society. In our activities, we not only provide
cooperation and support through personnel, facilities, funds
and know-how but also strive to closely connect withparticipants. To foster employees’ awareness of their ties tosociety and raise their interest in contributing to society, we
promote enlightenment efforts such as sharing information
on volunteer activities and providing a venue for volunteer
activities that encourage the participation of all employees.

General Shareholders’ Meeting
Briefing on financial results for fiscal 2014 by the president (May 2014)

We hold our annual general shareholders’ meeting early to
avoid the date on which many companies hold theirrespective shareholders’ meetings so that moreshareholders can attend.
We are laying the groundwork for further facilitating theexercise of voting rights of our shareholders by allowing
them to exercise such rights via the Internet and by joining
the electronic voting platform for institutional investors.
We held our 135th General Shareholders’ Meeting on
June 13, 2013, in which 396 shareholders participated.
For the purpose of fostering a better understanding of ourbusiness activities, we invited our shareholders for a lift truck
plant tour following the general shareholders’ meeting.
Starting with the 136th meeting, we printed in color our
Notice of the General Shareholders’ Meeting and added
topics on current business initiatives in order to provide
improved readability.

Dividend Policy
Toyota Industries regards returning profits to shareholders as
one of the most important management policies.
Accordingly, we strive to continue paying dividends andmeet the expectations of shareholders upon taking into
consideration such factors as business results, demand forfunds and the payout ratio. For fiscal 2014, Toyota Industries
paid annual cash dividends per share of ¥85.0 (interim cash
dividend per share of ¥35.0 and year-end cash dividend pershare of ¥50.0).
■ Cash Dividends per Share (Annual)
(¥)
90
80

Investor Relations Activities

70
60

For institutional investors and securities analysts,
our management conducts briefing sessions to explain
our quarterly financial results, including businessperformance, progress achieved at each business divisionand future initiatives. In addition to accepting individualinterviews and making visits to institutional investors, we
also hold plant tours to facilitate a deeper understanding of
the Company and its operations. To respond to the growing
number of institutional investors from outside Japan

56

Toyota Industries Report 2014

50
40
30
20
10
0
(FY)

10

11

12

13

14

Structure for Promoting Social
Contribution Activities
The CSR Committee deliberates on policies of our social
contribution activities while the Social Contribution Group
within the General Administration Department at the Head
Office takes the initiative in carrying out activities.

Three Pillars of Our Social Contribution
Activities
Toyota Industries is engaging in various activities in close
cooperation with every local community in which we
operate, placing particular emphasis on social welfare,youth development and environmental protection.
■ Social Welfare
To help develop local communities where everyone enjoys
an active life, we hold various social welfare events toencourage exchange with persons with disabilities andconduct joint fund-raising programs with our consolidated
subsidiaries in Japan.
■ Youth Development
With the aim of providing opportunities for youth, who willlead the next generation, to learn the importance ofmonozukuri (manufacturing) and the meaning of workthrough actual experiences, we hold events jointly with
Youth Invention Clubs, host work experience activities andconduct environmental education.
■ Environmental Protection
We carry out a range of environment-related activities,
including promoting the use of wood thinned from forests inJapan, conserving forests through employee volunteer
programs and engaging in cleanup activities in the community
where our plants are located, to contribute to environmental
preservation and the development of a sustainable society.

Activity Examples of Toyota Industries and Consolidated Subsidiaries (Japan)
Environmental Education for Local Elementary SchoolChildren
In December 2013, we invited fifth graders of a local
elementary school to the Higashiura Plant in Aichi Prefecture
to show our safe and efficient manufacturing operations anda range of environmental initiatives. Combining quizzes andexperiments, we communicated to the children thatenvironment-conscious
manufacturing activities
will become
increasingly importantin the future andencouraged them tothink about what they
can do to protect theenvironment.

Agreement to Cooperate in the Event of a Disaster
In June 2013, TOYOTA L&F Tokyo Co., Ltd., a consolidated
subsidiary in Japan engaging in sales and servicing ofmaterials handling equipment, concluded an agreement withthe local government of Shinagawa-ku, Tokyo, to cooperate
in disaster relief activities using its lift trucks. This agreement isaimed at reinforcing a system to promptly and smoothly
deliver relief supplies toevacuation shelters in
the event of a disaster.
These lift trucks are
expected to allow asmall group of people
to efficiently accept anddeliver a large quantityof relief supplies in ashort time.

Children watching an experiment on wastewater
treatment

Concluding a disaster cooperation agreement with
Shinagawa-ku, Tokyo57

Toyota Industries Report 2014

Environmental Initiatives

Activity Examples of Consolidated Subsidiaries (outside Japan)
Indonesia Support for Community Health CareFrance Support for Breast Cancer Research

P.T. TD Automotive Compressor Indonesia (TACI)
Subsidiary producing car air-conditioning compressors

Toyota Material Handling France SAS (TMHFR)
Subsidiary engaging in sales and servicing of materials
handling equipment

In April 2013, TACI worked jointly with the village office anda local health center and provided medicines and medical
advice by a doctor free of charge to residents living in theneighborhood of its plant. As another effort to support local
residents in promoting their health, TACI distributed
nutritional supplements for infants.

Providing nutritional supplements for infants

58

To improve awareness for breast cancer and help raise
funds for related medical research, a marathon event washeld in Paris in September 2013. A team of about 40 female
employees of TMHFR participated, wearing team T-shirts
and bringing additional excitement to the event. Participation
fees were donated to a breast cancer research foundation.

Employees participating in the marathon event

Sweden Joining and Supporting Environmental
Protection Activities

U.S.A. Support for Education and Job Placement
Guidance for Local High School Students

BT Products AB (BTP)
Subsidiary producing materials handling equipment

North Vernon Industry Corp. (NVIC)
Subsidiary producing materials handling equipment parts

The environmental event “Golden Garbage Festival” washeld in July 2013 in Vadstena, a city near BTP’s plant. BTP
employees and their families participated in the event andgained an awareness of environmental conservation throughsuch programs as a workshop to create toys from milk
cartons and egg containers. BTP also provided financial
support to the event.

In November 2013, NVIC contributed to the local community
by collaborating with a local high school. NVIC employees
served as interviewers in mock interviews and as lecturers in
the classroom to provide guidance for students proceeding
to higher education or those applying for a job. NVIC has
been engaging in this initiative for the 11th consecutive year,
and more than 200 students participated in the event infiscal 2014.

Employees and their families participating in environmental event

Employee conducting a mock interview with a high school student

Toyota Industries Report 2014

Vision for Environmental Activities

P

60

Structure to Implement Environmental Management

P

61

Fifth Environmental Action PlanP

62 − 63

Establishing a Low-Carbon Emission SocietyP64 − 65

Establishing a Recycling-Based Society
Reducing Environmental Risk andEstablishing a Society in Harmony with Nature

P

P

66

67 − 68

Environmental Management

P

69

Environmental Impact Flow and Environmental Accounting

P

70

59

Corporate Social
Responsibility

Business Activities

Financial Section /Corporate Information

Environmental Initiatives

Vision for Environmental Activities/
Structure to Implement Environmental Management

Vision for Environmental Activities

Structure to Implement Environmental Management

Toyota Industries works with consolidated subsidiaries in and outside Japan to promote environmental
activities on a global scale. With regard to our “CO2 Cancel” initiative, we aim to accomplish its targets
in fiscal 2016.

Positioning environmental response as one of its most crucial management issues, Toyota Industries isenhancing its environmentally oriented corporate management on a global basis through the promotionof consolidated environmental management.

Global Environmental Commitment
As one tenet under our Basic Philosophy, Toyota Industries
works to contribute to regional living conditions and social
prosperity and also strives to offer products and services
that are clean, safe and of high quality. Accordingly, inFebruary 2011, we established the Global Environmental
Commitment, a specific environmental action guideline,
to be shared and implemented throughout the Toyota
Industries Group.
The entire Toyota Industries Group comprising 154
companies in and outside Japan will dedicate concerted
efforts to realizing a prosperous life in harmony with thenatural environment by carrying out activities aimed at“establishing a low-carbon emission society,” “establishing a
recycling-based society” and “reducing environmental risk
and establishing a society in harmony with nature” as ourway of “promoting environmental management.”

product efficiency and other means. We have adopted thisapproach as a new environmental target under the Fifth
Environmental Action Plan.

Activities for Accomplishing “CO2 Cancel”
Aiming to accomplish “CO2 Cancel” in fiscal 2016, we havebeen undertaking activities accordingly.
In fiscal 2014, our efforts to develop products withimproved efficiency led to the successful development andrelease of engines with considerably less CO2 emissions andan air-jet loom with lower energy consumption. As a result ofconcerted efforts to reduce CO2 emissions from production
activities, we made steady progress toward the goal of
attaining “CO2 Cancel” in fiscal 2016.
We will continue to promote our CO2 reduction activities
both in terms of product development and production
activities.

Aiming at realizing a prosperous life in harmony
with the natural environment

Steps to Accomplishing “CO2 Cancel”• Effective use of resources at thedeveloping stage of products• Improvement of productivity interms of resources usage

Recycling-basedsocietyLow-carbon
emission society

Toyota Industries has positioned environmental response as
one of its most crucial management issues. To quickly
reflect top management’s decisions on business operations,Toyota Industries has established and been operating a
Company-wide integrated environmental management
system (EMS), with the president at the top.
Since fiscal 2011, we have been consolidating
environment-related regulations that had been establishedseparately by each business division with the aim of
improving the efficiency of our EMS. In fiscal 2014, we
formulated Company-wide standards to identify facilities thatmust be included in our evaluation of the environmental
impact of production activities (evaluation of environmental
aspects). These standards helped us to evaluate all facilities
that could potentially affect the environment and reduce
associated environmental risks. We have also simplified theevaluation process.

Toyota Industries implements annual internal environmental
audits as well as external audits carried out by anindependent third-party institute.
The external audit conducted in fiscal 2014 revealed one
non-conformance. We have already completed measures tocorrect it and passed on the relevant information to otherplants to prevent recurrence.
As for internal audits, we introduced a system ofconducting mutual audits among business divisions in fiscal
2013. Under the system, the Environment Department of
one business division plays a central role in an internal auditof another business division. By adopting this method, we
aim to upgrade the overall capabilities of the Environment
Department of each business division. At the same time, inorder to improve the capabilities of auditors, they work in pairs
when conducting an audit, with one auditor having a high levelof expertise teaming up with a less experienced auditor.

■ Environmental Management Structure■ System of Mutual Audits

Establish parameters to calculate CO2 reduction
1
volume for each productInternal audit
Responsible internal auditor

2 Simulate a timeline to accomplish “CO2 Cancel”•Team leader•Supervising auditors•Auditors

3

Specify targets (including when to accomplish“CO2 Cancel”)

4 Promote activities to achieve these targets• Development of products andtechnologies in pursuit of superiorenergy efficiency• Achievement of minimum energy
consumption through the innovationsin production engineering

Environmental Audits

Environmental
Management• Approach towards biodiversity• Human resources,
environmental awareness• Cooperation with global
society and local communities

5 Accomplish “CO2 Cancel”
6 Define higher targets (e.g., “CO2 Double Cancel”)

Notional Diagram of Global Environmental Commitment

Audit
Environment Department

Environment Department

Specialized committees

Audit
Product Environment Subcommittee

Chief environmental administrator

Head Office
Corporate Planning
R&D
Purchasing
Quality Assurance
Human Resources
General Administration

Business division B

Business division A

Environmental Committee

President• Change to more environmentally friendly chemicals• Minimize environmental risks

Environmental risk
reduction
Society in harmony
with nature

Improving Environmental Management
System Efficiency

Business planning

Business planning

Production engineering

Production engineering

Manufacturing

Manufacturing

Production Environment Subcommittee

Admin office

Company-Wide CO2Emission Reduction Conference

Divisions
Materials Handling Equipment
VehicleEngineCompressor
Electronics
Textile Machinery

Division-Based
Promotion Committees

Environmental Conservation Organization by manufacturing plants (environmental risk management overseen by plant managers)■ Scope of Group-Wide Environmental Management (As of March 31, 2014)

Working toward “CO2 Cancel”
What Is “CO2 Cancel”?
CO2 emissions fromWe have been promoting production activities
initiatives under our original
concept called “CO2
Cancel.” This refers to ouraim to offset CO2
emissions from production
activities by reducing CO2
emissions via improved

Non-production companies
Japan: 24
Outside Japan: 93

CO2 Cancel

North America■ Production companies: 10

CO2 emissions from production activities= Total CO2 emissions from Toyota Industries’ plants
Reduction of CO2 emissions via improved
product efficiency
Notional Diagram of “CO2 Cancel”

60

Toyota Industries Report 2014

Reduction of CO2 emissions via improved product efficiency= Total reduction in CO2 emissions attained by major products
which are manufactured at Toyota Industries’ plants

Toyota Industrial Equipment Mfg., Inc. (U.S.A.)The Raymond Corporation (U.S.A.)
Raymond-Muscatine Inc. (U.S.A.)
North Vernon Industry Corp. (U.S.A.)
Indiana Hydraulic Equipment, Corp. (U.S.A.)
Michigan Automotive Compressor, Inc. (U.S.A.)TD Automotive Compressor Georgia, LLC (U.S.A.)
Cullman Casting Corporation (U.S.A.)
Cascade Corporation (U.S.A.)
Toyota Industries Compressor Parts America, Co. (U.S.A.)

EuropeJapan■ Production companies: 6■ Non-consolidated: 10 plants■ Production companies: 13

BT Products AB (Sweden)
Toyota Industrial Equipment, S.A. (France)
CESAB Carrelli Elevatori S.p.A. (Italy)
L.T.E. Lift Truck Equipment S.p.A. (Italy)
TD Deutsche Klimakompressor GmbH (Germany)
Uster Technologies AG (Switzerland)

Asia■ Production companies: 7

TD Automotive Compressor Kunshan Co., Ltd. (China)
Toyota Industry (Kunshan) Co., Ltd. (China)
Zhejiang Aichi Industrial Machinery Co., Ltd. (China)
Kirloskar Toyota Textile Machinery Pvt. Ltd. (India)
Toyota Industrial Equipment Vietnam Co., Ltd. (Vietnam)
Nishina Industries Vietnam Co., Ltd. (Vietnam)
P.T. TD Automotive Compressor Indonesia (Indonesia)

Aichi Corporation (Saitama)
Nishina Industrial Co., Ltd. (Nagano)
Tokaiseiki Co., Ltd. (Shizuoka)
Altex Co., Ltd. (Shizuoka)
Hara Corporation (Gifu)
Mino Tokyu Co., Ltd. (Gifu)
HANDA Casting Company (Aichi)
Unica Co., Ltd. (Aichi)
IZUMI MACHINE MFG. CO., LTD. (Aichi)
Nagao Kogyo Co., Ltd. (Aichi)
Miduho Industry Co., Ltd. (Aichi)
Iwama Loom Works, Ltd. (Aichi)
Tokyu Co., Ltd. (Aichi)

61

Business Activities

Corporate Social
Responsibility

Financial Section /Corporate Information

Environmental Initiatives

Fifth Environmental Action Plan

Fifth Environmental Action Plan
The results of our activities in fiscal 2014 showed steady progress across the board toward achieving
respective targets for fiscal 2016.

■ Production Related
Fifth Environmental Action Plan Targets
Segments

Progress in the Fifth Environmental
Action Plan
With an eye to realizing a prosperous life in harmony with
the natural environment through the establishment of asustainable society, we have formulated the Fifth
Environmental Action Plan for the period from fiscal 2012 to
fiscal 2016, promoting activities according to the plan.
Through activities undertaken during fiscal 2014, we
made steady progress toward achieving respective targets
for fiscal 2016.

■ Product Related
Fifth Environmental Action Plan Targets
FY2014 Achievements
Segments

Action Policies

Establishing a
Low-Carbon
In the Materials Handling Equipment Business,
Emission Society develop technologies and products that willcontribute to reduction of CO2 emissions• Improve fuel efficiency of internal-combustion lift
trucks• Reduce energy loss in electric-powered lift
trucks and improve energy efficiency offunctional units

In the Textile Machinery Business, develop
technologies and products that will contribute to
reduction of CO2 emissions• Reduce energy use through lower air
consumption• Reduce power use through lower load fromwindage loss
• Reduce energy loss

In the R&D field, develop technologies for energy
efficiency• Develop new technologies that contribute toimproved energy efficiency in automobiles

Establishing a
Implement initiatives to promote 3R (reduce,
Recycling-Based reuse and recycle) design for effective resource
utilization
Society

Reducing
Environmental
Risk and
Establishing aSociety inHarmony with
Nature• Improve energy efficiency of car air conditioners• Develop technologies to respond toelectrification of vehicles• Develop technologies to enable weight reduction• Reduce energy loss
• Develop new engines<Automobile-Related Business>• Developed highly efficient electric compressor<Materials Handling Equipment Business>• Improved energy efficiency of diesel/gasolinepowered internal-combustion lift trucks<Textile Machinery Business>• Developed the new JAT810 air-jet loom withlower air consumption

Reduce emissions to improve air quality in urban
areas in all countries and regions• Develop engines that meet future regulations• Developed lift truck engines compliant withemissions regulations ahead of schedule

Manage chemical substances contained in
products• Investigate chemical substances contained in
products and manage switching over of SVHC*2
and other substances of concern to othersubstances• Expanded the scope of substances of concern(investigated substances of concern containedin supplies)

Toyota Industries Report 2014

Enhance resource productivity• Reduce use of timber-derived packaging materials• Reduce the volume of discarded materials by taking
action at the source, such as improving yields andother measures• Promote internal reuse

Further reduce emissions of substances of concern
Minimize environmental risks
Reducing
Environmental Risk • Continuously use a preliminary review system• Reduce risks related to wastewaterand Establishing a• Appropriately manage chemical substances based onSociety in Harmony social conditions
with Nature• Enhance risk communication with relevantorganizations and local residents

Subject

Scope

NonCO2 emissions
consolidated• Energyderived CO2
Global• 5 gases*4• CO2 from
Nonlogistics
consolidated

FY2016 Targets

Control Items Base Year (FY) Achievements

Targets

Total
emissions

2006

-13%

-18%

Eco
efficiency*5

1.25

1.27

2006
1.43

1.47

Total
emissions

1991

-30%

-20%

CO2 from
logistics

Nonconsolidated

Eco efficiency

2007

1.41

1.09

Packagingmaterial
volumeNonEco efficiency
consolidated

2007

4.86

1.09

1.02

1.01

1.02

1.01

24 (g/m2)

24 (g/m2)

Waste
generation
volumeVOC*6emissions

In Japan
Nonconsolidated

Nonconsolidated(automobile
body)

Eco efficiency

Emissionvolume perunit ofproduction

2013

—

■ Promoting Environmental Management
Fifth Environmental Action Plan Targets
FY2014 Achievements
Action Policies

Specific Actions

Reinforce CO2 reduction • Further reduce CO2 emitted from production activities in plants
activities for “CO2
• Aim to cancel out CO2 emissions of Toyota Industries by reducing CO2
Cancel”
emissions through improved efficiency in newly developed products• Conducted activities for achievement of “CO2 Cancel”(Target: FY2016)• Build a global environmental management system and promote related• Conducted on-site inspections of environmental risks andactivities to:confirmed compliance at consolidated subsidiaries in Japan, and
1) Comply with environment-related laws and reduce environmental risks in
conducted interview survey of environmental risks at consolidated
each country
subsidiaries outside Japan
2) Achieve the highest-level performance in each country• Checked the precision of environmental data at consolidated• Aim for efficient and systematic corporate management by integrating andsubsidiaries in Japan and provided support for improvement
operating environmental management system and quality/safety management
systems• Develop environmental specialists to lead internal environment-related
Enhance and promote
activities
environmental education• Strengthen internal environment-related activities and broaden family-friendly
and enlightenment
initiatives by planning and promoting enlightenment activities that can be
activities
carried out at home

• Conducted environmental awareness survey among employees,
which scored 3.8 out of 5 points

Improve eco-conscious
brand image• Reinforce environmental activities according to the contents and results ofSurvey of Environmental Oriented Management Index to pursue higher brand
image

Augment activities
related to protection of
biodiversity• Identify the impact of business activities on biodiversity and reinforce initiatives• Conducted maintenance and management activities at Biotope ofby defining specific goals
the East of Obu Station, which were jointly carried out with the• Contribute to biodiversity through conservation of forests and protection of
local community
rare species

Promote sustainable
plant activities• Build a plant environment in harmony with nature by promoting energy
reduction and energy conservation through innovative production engineering, • Continually reviewed energy strategy for the medium to long termby reducing energy loss and by using renewable energy and other means• Won Biotope Award in the 5th Biotope Commendation† Targets for FY2016 undisclosed due to confidential information† Targets for FY2016 undisclosed due to confidential information

62

Establishing a
Recycling-BasedSociety

Augment and promoteconsolidated
environmental
management• Reduce use of resources through longer productlife• Reduce use of resources throughstandardization, modularization and reduction of• Developed plastic glazing back window
components• Reduce use of resources through weight andsize reductions• Promote reuse of components and resources

Promote energy reduction and energy conservation
through innovative production technologies
Reduce greenhouse gas emissions during production
processes through energy JIT*3
Promote measures to curb global warming

Reduce CO2 emissions through green logistics

Specific Actions

Reduce CO2 emissions by 10%*1 from major products to be developed during the period covered by
the Fifth Plan

In the Automobile-Related Business, promoteelectrification and develop technologies andproducts that will contribute to reduction of CO2
emissions

Establishing a
Low-Carbon
Emission Society

Action Policies/Specific Actions

FY2014 Achievements*1: Target products Toyota Industries develops and produces. The CO2 reduction volume is calculated based on the method Toyota Industries determined using FY2011 levels as the baseline.
*2: Substances of Very High Concern*3: Just In Time
*4: Greenhouse gases other than CO2, including methane (CH4), dinitrogen monoxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulfur hexafluoride (SF6)*5: Eco-efficiency = Production efficiency in subject year / Production efficiency in base year
Production efficiency = Production indicator (Net sales or production volume, etc.) / Environmental impact of production activities*6: Volatile Organic Compounds

63Business Activities

Corporate Social
Responsibility

Environmental Initiatives

Financial Section /Corporate Information

Establishing a Low-Carbon Emission Society

Establishing a Low-Carbon Emission Society
We position the establishment of a low-carbon emission society as one of our most crucial
environmental tasks. We are working to reduce CO2 emissions in our global business activities and at
the same time accelerate our efforts to develop more environment-friendly products.

Reinforcing Activities to Reduce PeakPower Consumption by Visualizing Use of
Electricity

Summary
CO2 Emissions (Production Activities)
FY2014 Results
Total emissions(non-consolidated)

13%

FY16 target:

reduction

18% reduction(vs FY06 level)(vs FY06 level)

Eco-efficiency (global)

1.25

FY16 target:

1.27 (FY06 = 1.00)(FY06 = 1.00)

Under the Fifth Plan, we set out to achieve a target of
reducing total non-consolidated CO2 emissions fromproduction activities by 18% in fiscal 2016 comparedwith the fiscal 2006 level. We successfully achieved a
13% reduction in CO2 emissions in fiscal 2014 as aresult of our ongoing efforts to save power and reduce
peak power load as well as joint activities among the
manufacturing, production engineering and environment
departments to reduce the amount of air used in
production activities.
Our product development activities are based on the
keywords of 3Es (Energy, Environmental protection and
Ecological thinking), and we focus on developing
products that meet the need for increased energy
savings, electrification and weight reduction. In this area,
we are currently working toward a target of attaining a
10% reduction in CO2 emissions from primary productsby fiscal 2016 compared with the fiscal 2011 level.

To help promote activities to lower the upper limit of power
consumption during summer and at other occasions, we
introduced a new, Company-wide power management
system capable of monitoring the usage and demand
estimates of electricity in real time. By visualizing data on theusage status of electricity, which had been managed solely
by the department responsible for supplying energy, andmaking the data available to all employees, we worked toraise their awareness for conserving electricity further andreduce our peak power consumption.
This management system enables us to adjust our useof electricity according to power demand estimates. If weare reaching the internal target (upper limit) of power usage,
the system notifies supervisors by displaying a message on
the screen, sending email alerts and lighting indicator lamps,
all of which serve to accelerate the process of reducing
peak power load. The result was a 12% reduction in peak
power consumption of the entire Company (compared withthe assumed power consumption in fiscal 2014 if thesystem was not introduced).
We will continue to undertake proactive efforts topromote the management of electricity and other forms ofenergy at plants and contribute to the conservation of the
global environment through power- and energy-saving
activities.
■ Company-Wide Energy Management System
Automatic datacollection

Automatic datacollection

Initiatives for Establishment of a Low-Carbon
Emission Society
Past power demand data

■ CO2 Emissions (Non-consolidated/Consolidated
subsidiaries in and outside Japan)

Weather information

Automatictransmission

Consolidated subsidiaries outside Japan
Non-consolidated
Consolidated subsidiaries in Japan
Eco-efficiency
Eco-efficiency (non-consolidated)
Eco-efficiency (consolidated)

1.43
1.31

1.36

1.6
Good

1.4

1.23
1.14
1.00
Total
emissions
(kt)

1.09

1.13

1.21

756
667

600

600

1.25

1.2
1.0

1.00

800

1.23

796

Web browser screen

Indicator lamp

Email alert

858

678

Data available in real time

Sending alert

400
200
Good

(FY) 06

64

All employees

0Toyota Industries Report 2014

10

11

12

13

14

Supervisors

Kazunori
Mizogami (left)
CO2 Reduction Group,
Plant Engineering Office,Plant Engineering &Environment Dept.

Takahiro
Omura (right)
Working Group Leader,
CO2 Reduction Group,
Plant Engineering Office,Plant Engineering &Environment Dept.
Position anddepartments are as ofMarch 31, 2014.

In introducing a Company-wide power management
system, we needed to consolidate in our servers data onelectricity that we receive from a power company, so ourfirst task was to develop a system that can do this easily.
Because we had not accumulated power usage data inthe past, we had difficulty analyzing peak power consumption.
By saving relevant data in servers at one-minute intervals,
the analysis of peak power consumption became possible.
In the future, we will incorporate information on the
production status and operational plans of each plant into
the system to improve the accuracy of power demand
estimates. We will also increase email alerts and install moreindicator lamps in a wider area as a means of raising thesystem’s effectiveness in reducing power consumption.

Rearranging Boiler Placement to Reduce
Steam Transmission Loss
As part of efforts to reduce CO2 emissions, the Takahama
Plant in Aichi Prefecture, which engages in development andproduction of materials handling equipment, has beenworking to improve the efficiency of its production facilities
since fiscal 2009 with the aim of reducing steam
transmission loss in production processes.
Previously, steam was generated in one boiler room
within the plant and distributed to each production process.
This necessitated steam to be carried over a long distanceand thus a considerable amount of heat was lost frompiping. In order to shorten the distance of distributing steam,additional boiler rooms were installed close to the steamconsuming production processes located far from thecentral boiler room. The steam piping system was also
modified to enable control of the steam transmission volume
according to the seasons or the time of day. As a result,annual CO2 emissions of the Takahama Plant were reducedby roughly 600 tons.
We will continue to undertake similar improvement
activities to further reduce steam transmission loss.

Certification of Environmentally Friendly
Products
Toyota Industries has been proactively promoting
development and design of eco-conscious products.
To certify products that possess exceptionally outstanding
environmental performance and meet internal environmental
standards, we launched the Environmentally Friendly
Product Certification System in fiscal 2007. Up to fiscal
2013, 12 products have obtained certification under thissystem. In fiscal 2014, we certified another three types ofindustrial engines as environmentally friendly products.
(Survey by Toyota Industries Corporation)

Toyota 1KD diesel engine (industrial engine)
Eco-conscious features:•Fitted with a turbocharger developed in-house fordownsized displacement, offers greater fuel efficiency
and weight reduction•Capable of greatly reducing emissions of particulatematter (PM) compared with the previous model without
using a diesel particulate filter (DPF) and has cleared
emission standards*1 of various countries and regions
Fuel consumption: 23% lower(versus previous model)

Displacement: 43% smaller(versus previous model)*1: This engine has cleared the following emission regulations:(1) U.S. Environmental Protection Agency (EPA) Tier 4 emission standards(2) EU Stage IIIB standards for non-road engines(3) Japan's 2013 Non-road Special Motor Vehicle emission regulation

Toyota 1ZS diesel engine (industrial engine)
Eco-conscious features:•Optimized the turbocharger mounted on the Toyota
1KD for use in the Toyota 1ZS. Shifted from theprevious 4-cylinder engine to 3-cylinder diesel engine,which marks as a first for Toyota Industries, realizing
downsized displacement while maintaining highoutput power and achieving greater fuel efficiency
and weight reduction.
•Drastically reduces PM emissions compared with theprevious model without using a DPF and passes
emission standards of various countries and regions
Fuel consumption: 20% lower(versus previous model)

Displacement: 48% smaller(versus previous model)

Toyota 1FS gas/gasoline engine (industrial engine)
Eco-conscious features:•Offers greater combustion efficiency resulting from theoptimally shaped combustion chamber and central
placement of the spark plug within the chamber andachieves both improved output and higher fuelefficiency•Downsized displacement for realizing weight reduction
Fuel consumption: 10% lower(versus previous model)

Displacement: 18% smaller(versus previous model)† See page 18 for details.

65Corporate Social
Responsibility

Business Activities

Environmental Initiatives

Financial Section /Corporate Information

Establishing a Recycling-Based Society/
Reducing Environmental Risk and Establishing a Society in Harmony with Nature

Establishing a Recycling-Based Society

Reducing Environmental Risk andEstablishing a Society in Harmony with NatureWith a view to establishing a recycling-based society, we have been dedicating considerable efforts tomaking effective use of resources throughout our entire supply chain.

All employees of the Toyota Industries Group are honing their ability to identify environmental risk andpromote prevention activities on a global scale.

Summary
Waste Generation Volume (Production Activities)
FY2014 Results
Eco-efficiency(non-consolidated)

1.02

FY16 target:(FY13 = 1.00)

Eco-efficiency (non-consolidated/consolidated subsidiaries in Japan)

1.02(FY13 = 1.00)

1.01 (FY13 = 1.00)

FY16 target:

1.01 (FY13 = 1.00)

Our fiscal 2016 eco-efficiency targets in the area ofwaste generation volume under the Fifth Plan are set at
1.01 both on a non-consolidated basis and for Toyota
Industries and its consolidated subsidiaries in Japan(fiscal 2013 as the base year). During fiscal 2014, toreduce materials losses we launched activities to makeeffective use of resources throughout the entire supply
chain, extending the scope of our activities to ourbusiness partners.

mechanical systems).
Previously, cleaning fluid that accumulated in a recovery
box outside the facility due to dew condensation wascollected and disposed of by operators. To eliminate thisloss, the plant installed a mechanical pump to recover the
fluid and send it back to the cleaning fluid tank for reuse.
This process involves an operator stepping on a floor panel,
which is positioned several millimeters higher than the floor,
to pump up cleaning fluid in the recovery box. When theoperator steps off the panel, the fluid is sent back to thetank. This floor panel is located in an area where operators
normally work, thus they operate the pump unconsciously.
This mechanism has been successfully adopted in otherproduction processes throughout the Company.
■ Mechanism of Mechanical Pump
Pump upcleaning fluid
Air
Cleaning
fluid

Step on floor panel
Send cleaning
fluid back to tank

Initiatives for Establishing a Recycling-Based Society■ Waste Generation Volume (Non-consolidated/
Consolidated subsidiaries in Japan)
Non-consolidated

Air

Consolidated subsidiaries in Japan

Eco-efficiency (non-consolidated)

Eco-efficiency (Japan consolidated)

Cleaning
fluid

Good

1.00

1.02

1.01

1.00

1.02

1.01

131

125

1.0

Step off floor panel

Cleaning fluid
recovery box

Eco-efficiency

Waste generation volume (kt)

1.2 Good

200

100

0
(FY)

13

14

16 (Target)

Members of the Facilities
Section, Preventive
Maintenance Office,
Manufacturing Dept. No. 1,
Hekinan Plant

Recovering Cleaning Fluid by a MechanicalPump
The Hekinan Plant in Aichi Prefecture, which produces diesel
and gasoline engines, created a pump for collecting andrecycling cleaning fluid.
This pump operates mechanically without using power
generated by motors. It is one example of kaizen(improvement) utilizing Japan’s traditional karakuri (simple

66

Toyota Industries Report 2014

The Facilities Section has been proactively undertaking“kaizen by karakuri” initiatives, and our efforts have led to aconsiderable improvement not only for environmental areas
but also safety and productivity. “Kaizen by karakuri” also
has served to raise kaizen awareness within the workplace
and promote the development of capable human resources.
Our abilities are improving on a daily basis.

■ Trichloroethylene Readings

Summary
VOC Emissions (Production Activities)
FY2014 Results
Emissions per unit of production(non-consolidated/automobile body)

24 g/m2

Plant

FY2010FY2011FY2012FY2013

FY2014

Kariya Plant

0.67

0.41

0.38

0.26

0.27

Kyowa Plant

0.34

0.41

0.48

0.33

0.31

Weighted average concentration in groundwater (mg/l)

FY16 target:

24 g/m2

Under the Fifth Plan, we set a fiscal 2016 target of
attaining emission volume per unit of production below
24 g/m2 for volatile organic compounds (VOCs) from theautomobile body painting process and undertook
activities accordingly. In fiscal 2014, we focused onincreasing the recovery rate and enhancing maintenanceand management of thinner, a solvent used for cleaning.
Consequently, emission volume per unit of production in
fiscal 2014 was 24 g/m2.

Status of Compliance withEnvironmental Laws
In fiscal 2014, there were two incidents in which plant
effluents exceeded standard values at consolidated
subsidiaries within the Toyota Industries Group. These
incidents have been reported to the relevant authorities, andcorrective measures have already been completed by thesubsidiaries concerned. Subsequent confirmations havealso been made to ensure that there are no recurrences.

Soil and Groundwater Pollution
Countermeasures
Toyota Industries carries out surveys and purification of soil
and groundwater contaminated from the past use oftrichloroethylene. We regularly report the survey results tolocal government authorities and provide information at local
community meetings. As measures to prevent pollution fromsubstances covered by the Soil Contamination
Countermeasures Law as well as from grease and oils, wehave drilled observation wells at all plants to conduct regularchecks.

Initiatives to Minimize Environmental Risk
We regard the prevention of environmental irregularities as
one of our most important themes and have been promoting
activities under the Fifth Plan.
We are identifying facilities and work processes with therisk of leakage of chemical fluid or oils and implementing
preventive measures, both mechanical and procedural,following a prioritized list. We seek to minimize
environmental risk throughout the Toyota Industries Groupby conducting genchi genbutsu (go and see for yourself)
inspections at consolidated subsidiaries and promoting
activities to raise awareness among employees as well as
business partners.

Enlightenment Activities Utilizing
Environmental AP Cards
To communicate to employees the details of environmental
irregularities and potentially serious near-accidents that haveoccurred in the past and to prevent similar incidents fromoccurring, we created Environmental AP (Accidental Pattern)
Cards, which we use to promote enlightenment activities.
Environmental AP Cards provide an outline of andresponsive action and procedures required for each incident
along with points to keep
in mind during the worst
case scenario in which asimilar incident occurs. We
categorize incidents bytype, source, cause andapplicable work process
and create a list to manage
these incidents. Upon theoccurrence of a newincident that is not similar
to any on the list, wecreate a new card anddistribute it internally.
Environmental AP Cards

67

Business Activities

Corporate Social
Responsibility

Environmental Initiatives

Financial Section /Corporate Information

Reducing Environmental Risk and Establishing a Society in Harmony with Nature/
Environmental Management

Environmental Management
During fiscal 2014, we conducted enlightenment
activities simultaneously at production sites using theEnvironmental AP Cards to raise employee awareness. The
head of each department explained the contents of thecards as well as how to prevent similar incidents and how to
respond to an incident if it occurs within their department. In
addition, we created a collection of written declarations tobe observed by employees to prevent incidents.
Going forward, we will expand the scope of ourenlightenment activities based on the Environmental AP
Cards from production sites to other departments
throughout the Company.

Establishment of Award Program to
Recognize Risk Reduction Efforts
We established the Environmental Award Program torecognize employees, including temporary and term
employees, for early detection of environmental irregularities
or potentially serious near-accidents and their subsequent
contribution to preventing such incidents from spreading.
The program focuses on raising awareness for risk reduction
among employees by “recognizing” their efforts to prevent
damage from spreading, rather than “blaming” shouldincidents occur.
The program provides points according to the level ofseriousness of an incident or difficulty in detection, andbased on the points given, awards prizes such as an award
certificate, various incentives and points under our internal
eco-point system. The program, launched in January
2014, has recognized eight employees as of the endof March 2014.

Genchi Genbutsu Inspections on
Management of Consolidated Subsidiaries’
Drainage Systems
With a view to preventing the occurrence of any
environmental irregularities or potentially serious nearaccidents throughout the Toyota Industries Group, we
periodically monitor risk reduction activities of consolidated
subsidiaries. In fiscal 2014, we performed genchi genbutsu
inspections on drainage systems and their management
status at 11 bases of seven consolidated subsidiaries
in Japan.
Prior to inspection, we created a list primarily of facilities
with high risk of external leakage, such as wastewater
treatment facilities, grease and oil tanks, effluent pits andpiping that connect to the external environment, andinspected how they are managed based on a check sheet.
We make suggestions for kaizen for any problems foundduring the inspection and share good examples of kaizen
throughout the Group.
We also held hearings with consolidated subsidiaries
outside Japan using a similar check sheet. In the future,
we will raise the level of our risk reduction activities on
a global scale by proactively undertaking genchi
genbutsu inspections.

In addition to the conservation of biodiversity, Toyota Industries is also undertaking a range ofenvironmental activities at its consolidated subsidiaries in and outside Japan.

Creation of a Biotope Considering
Ecological Networks
Nobukazu Taguchi
In September 2012, we created a biotope open to the local
community on our idle land in Obu City, Aichi Prefecture. In
cooperation with an Aichi prefectural government initiative topromote development of ecological networks, we createdan environmental setting that serves as a node to connect
isolated areas with green zones and waterways and becomea habitat for various living organisms. During fiscal 2014, we
conducted maintenance and management activities jointlywith local community members. After holding a study
session to which we invited an expert on biotope
maintenance and management, we cut grass andconducted other maintenance activities on the premises.
Participants were impressed that certain ways of cutting
grass can create an environment friendly to various livingorganisms. We will collaborate with local residents indeveloping this biotope to contribute to the conservation of
the region’s ecological networks.

Study session on biotope maintenance and management

Position and department are as ofMarch 31, 2014.

Toyota Industries Report 2014

We have been holding the No-Car Commuting Day event as
part of ISO 14001 activities.
The event encouraged employees living in the sameneighborhood to share rides. This not only resulted in lessenvironmental impact but also generated active
communication among employees. We will continue
to hold this event and raise environmental awarenessamong employees.

In November 2013, Toyota Material Handling Europe(TMHE), the European headquarters for the materials
handling equipment business, published a social andenvironmental report for the first time.
The title of this report, “DUAL IMPACT,” shows TMHE’s
commitment to minimize the environmental impact of its
products and production activities in Europe in support ofEurope’s ambitious environmental regulations. It indicates
how TMHE would focus on both product development andproduction activities to support customers adhering to newlegal requirements.

Assistant Team Leader,Power Section No. 4, Power Office,Plant Engineering & Environment Dept.

68

Position and department are as ofMarch 31, 2014.

TMHE to Publish its First Social andEnvironmental Report

Takeshi Hongo

I noticed a change in the reading on a meter early andreceived an award for identifying the cause quickly andpreventing damage from becoming serious. I’m glad that myaction was effective in preventing damage, and the award isa strong reminder that reducing risk is very important. I will
make sure to quickly discover, respond to and report any
irregularity, being careful not to miss the smallest change,
and work to prevent environmental irregularities before
they occur.

Deputy General Manager,
Business Administration Department,
Nagao Kogyo Co., Ltd.

“No-Car Commuting Day” Event Held by
Nagao Kogyo

Genchi genbutsu inspection of a drainage system (consolidated subsidiary in Japan)

Nagao Kogyo Co., Ltd., a consolidated subsidiary in Aichi
Prefecture engaging in the manufacture of parts forcompressors, materials handling equipment and textile
machinery, has been holding an annual “No-Car Commuting
Day” event since fiscal 2009. At the sixth event held in June
2013, about 55% of employees commuting by car came towork on foot or by public transportation, bicycle or ridesharing. This result was equivalent to a 221 kg reduction in
CO2 emissions.

Tom Schalenbourg in charge of report development

69

Environmental Impact Flow andEnvironmental Accounting

Toyota Industries Report 2014

In this section, we provide an overall picture of environmental impact resulting from our global businessactivities and report the results of environmental accounting (environmental conservation cost,environmental conservation benefits and economic benefits of environmental conservation initiatives).

Financial Section /Corporate Information

Environmental Impact Flow
Environmental
Impact Flow

INPUT
■ Energy [consolidated]
Total consumption .................................
Electricity ..............................................
City gas .................................................
LPG ......................................................
Petroleum products ...............................
Coal products .......................................
LNG ......................................................

11,006 TJ*1
1,180,108 MWh
69,181 km3N
4,936 t6,156 kl
7,001 t5,581 tR&D/Design
Procurement
Production*1: Terajoule is a unit used to measure heat. 1 TJ = 1012 joules■ Raw Materials [consolidated]
Raw material consumption ....................

Transportation/Sales

662,412 t■ Water [consolidated]
Water consumption ...............................

■ Into the Air [consolidated]
CO2 ......................................................
Greenhouse gases other than CO2 ........
CO2 from logistics .................................
SOx (Sulfur oxides) ................................
NOx (Nitrogen oxides) ..........................
VOC (Volatile organic compounds) ........

857,839 t-CO2
3,130 t-CO2
48,415 t-CO2
563 kg145 t
1,608 t■ Chemical Substances [Japan consolidated]
Emissions/transfers of PRTR
499 t
law designated substances ................

Usage■ Waste [consolidated]
Waste generation ..................................

93,799 t

Recovery/Recycling■ Into Waterways [Japan consolidated]
Water pollutants ....................................
Discharge of treated wastewater ...........

27 t
2,124 km3

3,724 km3

■ Chemical Substances [Japan consolidated]
1,480 tPRTR law*2 designated substances ......

OUTPUT*2: Short for Pollutant Release and Transfer Register, the PRTR law is a scheme whereby businesses measure the release and transfer of PRTR designated pollutants and report theirperformance to the government. The government then compiles this data and releases it to the public.

Environmental Accounting and On-Site
Verification

On-Site Verification
Every year, Toyota Industries Head Office’s Plant Engineering& Environment Department takes the initiative in conducting
on-site verification of the accuracy and consistency ofenvironmental data included in the Toyota Industries Report.
The results for fiscal 2014 are as follows.

Fiscal 2014 Environmental Accounting*3
Scope of data collection: Toyota Industries Corporation
Period of data collection: April 1, 2013 – March 31, 2014
*3: Environmental accounting data is collected in compliance with the Ministry of theEnvironment’s Environmental Accounting Guidelines 2005 Edition.

■ Environmental Conservation Cost

(Millions of yen)

FY2014FY2013
Investment Expenses Investment Expenses
Pollution prevention costs
585
427
516
761
Business Global environmental
325
3,192
113
3,167
area costs conservation costs
Resource recycling costs
144
639
10
514
Category

Upstream/downstream costs

0

343

2

80

Management costs

5

1,219

14

1,219

Research and development costs

28

1,943

0

1,872

Social contribution activity costs

0

456

—

6

Environmental remediation costs
Total

0
43
1,087
8,262
9,349

37
21
692
7,640
8,332

■ Environmental Conservation Benefits
Environmental Impact
CO2
Generation of waste products
Water

Comparison with Previous Fiscal Year
22,479 t decrease552,672 m3 decrease(Millions of yen)

Details
Returns from sale of recycled waste products
Energy cost reductions
Cost reduction Cost reduction by resource savings(including reductions in amount of water use
and wastewater treatment costs)
Total

70

Toyota Industries Report 2014

Toyota Industries Corporation• Kyowa Plant, Takahama Plant, Higashichita Plant, Higashiura
Plant
Consolidated subsidiaries in Japan• Unica Co., Ltd., Miduho Industry Co., Ltd., Iwama LoomWorks, Ltd.

Items to be VerifiedP

72­ 80Consolidated Eleven-Year SummaryP

72­ 73

Consolidated Balance SheetsP

74­ 75

Consolidated Statements of Income

P

76

Consolidated Statements of Comprehensive Income

P

77

Consolidated Statements of Changes in Net Assets

P

Consolidated Statements of Cash Flows78­ 79P

80

81­ 85

1. Adequacy of the scope of data collection; validity of datacollection and calculation methods; validity of internalverification
2. Trustworthiness and accuracy of collected/calculated data as
well as data reported to the Head Office; accuracy of
methods of reporting to the Head Office■ Corporate Information

Results

Major Production Bases

P

84

Investor Information

P

85

P

Board of Directors, Audit & Supervisory Board Members
and Managing Officers
Major Consolidated Subsidiaries

P
P

81

82­ 83

5,197 t decrease■ Economic Benefits of Environmental Conservation Initiatives
Item
Revenue

On-Site Verification Sites■ Financial Section

Amount
4,278
190
71
4,539

1. The verified sites retained original data (evidence) for all
statistics, which were confirmed valid as were the scope andmethod of data collection.
2. All discrepancies found during verification have beencorrected after respective causes have been identified.
3. Considerations of improvements will be made for datacollected using complex collection methods that may result in
calculation errors.

Note:
For details on the consolidated financial statements, please refer to the separate
publication, which is also posted on the following Website:
www.toyota-industries.com

71Corporate Social
Responsibility

Business Activities

Financial Section /Corporate Information

Environmental Initiatives

Consolidated Eleven-Year Summary

Consolidated Eleven-Year Summary
Toyota Industries Corporation
Years ended March 31
Millions of yen

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

For The YearNet sales¥ 2,007,856¥1,615,244¥ 1,543,352¥ 1,479,839¥ 1,377,769¥ 1,584,252¥ 2,000,536¥ 1,878,398¥ 1,505,955¥ 1,241,538¥ 1,164,378

Operating income (loss)

107,691

77,09870,092

68,79822,002(6,621)

96,853

89,95464,04053,12052,631

Ordinary income

138,133

86,83680,86673,911

31,756

14,343

126,488

108,484

80,63570,91258,970Net income (loss)
Investment in tangible assets

91,705¥ 109,479

53,119¥89,45958,594¥58,40447,205¥38,254¥(26,273)(32,767)

80,46059,46847,07743,357

26,963¥ 104,495¥ 104,205¥ 129,023¥ 130,121¥ 111,321

33,623¥65,651

Depreciation

64,153

57,954

59,83062,372

73,23887,21983,74474,44964,423

51,27749,264

Research and development expenses

46,32639,05732,07027,78826,826

33,64636,75034,54831,16630,051

29,562Per share of common stock (yen):
Net income (loss) per share—basic
Net income per share—diluted¥

292.76¥170.36¥188.02¥151.51¥(84.33)¥(105.16)¥257.50¥189.88¥146.16¥135.09¥108.04292.57170.35————257.43189.66146.02135.03101.97

Total net assets per share

5,640.08

4,719.66

3,662.26

3,300.17

3,390.02

2,987.16

4,483.32

5,612.11

5,044.45

3,504.80

3,199.69

Cash dividends per share

85.00

55.00

50.00

50.00

30.00

40.00

60.00

50.00

38.00

32.00

24.00

At Year-End
Total assets¥ 3,799,010¥ 3,243,779¥ 2,656,984¥ 2,481,452¥ 2,589,246¥ 2,327,432¥ 2,965,585¥ 3,585,857¥ 3,245,341¥ 2,326,824¥ 2,011,995

Total net assets

1,829,326

1,524,933

1,197,841

1,075,939

1,104,929

977,670

1,453,996

1,810,483

1,611,227

1,115,747

1,016,763

Common stock

80,46280,46280,46280,46280,46280,46280,46280,46280,46280,46280,462

Number of shares outstanding (excluding treasury stock) (thousands)

313,730

312,207311,687

311,564

311,570

311,577

311,589

312,075

319,320

318,237

317,666¥ 155,059¥ 151,299¥ 101,718¥ 153,661¥ 203,452

65,768¥ 188,805¥ 177,467¥ 131,784¥ 100,095(118,483)(274,210)(9,403)(187,574)(36,855)(114,217)(138,789)(164,446)(205,013)(128,230)(92,667)

Cash FlowsNet cash provided by operating activities
Net cash used in investing activities
Net cash provided by (used in) financing activities
Cash and cash equivalents at end of year¥¥

92,406

6,183

7,050

10,279(85,728)(38,230)

120,971(33,992)(19,749)

85,17250,020(56,015)

226,406

179,359

296,811

195,566

317,590

188,011

121,284

108,569

112,596

100,535

77,212

5.7

4.1

5.4

4.5

(2.6)

(2.8)

5.1

3.5

3.5

4.1

3.8

Indices
Return on equity (ROE) (%)
Return on assets (ROA) (%)

2.6

1.8

2.3

1.9

(1.1)

(1.2)

2.5

1.7

1.7

2.0

1.8

Operating profit margin (%)

5.4

4.8

4.5

4.6

1.6

(0.4)

4.8

4.8

4.3

4.3

4.5

Equity ratio (%)

46.6

45.4

43.0

41.4

40.8

40.0

47.1

48.8

49.7

48.0

50.5

¥ 216,175¥ 155,234¥ 161,876¥ 150,481

71,608¥ 222,125¥ 191,007¥ 150,674¥ 128,381¥ 113,676

49,33347,41243,51640,82539,91639,52836,09632,97730,99027,431

EBITDA (millions of yen)
Number of employees¥

90,521
38,903¥

1. Investment in tangible assets and depreciation apply to property, plant and equipment. They do not, however, include materials handling equipment
leased under operating leases.
2. Net income (loss) per share is computed based on the average number of shares for each year.
3. ROE and ROA are computed based on the average total net assets and total assets, respectively, for each year.
Investment securities are stated at market value.
4. Operating profit margin = Operating income (loss) / Net sales
5. Equity ratio = (Total net assets – Subscription rights to shares – Minority interests) / Total assets
6. EBITDA = Income before income taxes + Interest expenses – Interest and dividends income + Depreciation and amortization

72

Toyota Industries Report 201473

Business Activities

Corporate Social
Responsibility

Environmental Initiatives

Financial Section /Corporate Information

Consolidated Balance Sheets

Consolidated Balance Sheets
Toyota Industries Corporation
As of March 31, 2014 and 2013
Millions of yen

2014

Millions of yen

2013

Assets2013¥ 196,904
120,058
20,524
29,13947,644
29,13825,962
1,458
619
191,903¥ 180,146
183,920
30,2244,499
44,851
17,623
15,9582,923
570
178,378

663,353

659,095

212,128
323,400
122,151
567,859—
63,854
16,936

213,584
236,318
101,883
440,356
52,779—14,8291,306,330
1,969,684

1,059,750
1,718,846

80,46280,462

105,654
563,957(43,012)

105,898
492,578(48,405)

707,062

630,534

Accumulated other comprehensive income:
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans

1,022,525(139)
44,649(4,629)830,054(237)
13,163—

Total accumulated other comprehensive income
Subscription rights to shares
Minority interests
Total net assets
Total liabilities and net assets

1,062,404
330
59,528
1,829,326¥ 3,799,010

842,980
1,478
49,9391,524,933¥ 3,243,779

Liabilities

Current assets:
Cash and deposits
Cash deposits for cash collection and deposit services
Trade notes and accounts receivable
Lease investment assets
Short-term investments
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other current assets
Allowance for doubtful accounts¥ 226,383
50,765
246,676
50,12246,012
77,98938,78253,47025,961
59,727(3,832)¥ 230,348
49,981
215,799
41,96433,047
66,67035,08840,762
23,83646,222(3,204)872,058

780,517395,692(238,697)
156,995
976,511(703,217)
273,294
149,580(114,281)
35,298
119,10741,418365,308(226,436)
138,871864,534(646,319)
218,214
135,525(105,024)
30,500118,244
43,982

626,114549,814

100,81490,068122,003
46,045

190,882

168,049

Investments and other assets:
Investment securities
Deferred tax assets
Lease investment assets
Other investments and other assets
Allowance for doubtful accounts

1,926,353
15,285
118,849
49,793(328)

1,598,437
12,304
93,572
41,231(148)

Total investments and other assets
Total fixed assets
Total assets

2,109,954
2,926,951¥3,799,010

1,745,398
2,463,262¥ 3,243,779

Total current assets
Fixed assets:
Property, plant and equipment:
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets:
Goodwill
Other intangible assets
Total intangible assets

74

2014

Toyota Industries Report 2014

Current liabilities:
Trade notes and accounts payable
Short-term loans payable
Commercial paper
Current portion of bonds
Lease obligations
Accounts payable—otherAccrued income taxes
Deferred tax liabilities
Allowance for bonuses to directors and audit & supervisory board members
Other current obligations
Total current liabilities
Long-term liabilities:
Bonds payable
Long-term loans payable
Lease obligations
Deferred tax liabilities
Allowance for retirement benefits
Liability for retirement benefits
Other long-term liabilities
Total long-term liabilities
Total liabilities

Net Assets
Shareholders’ equity:
Capital stock
Authorized — 1,100,000,000 shares
Issued— 325,840,640 shares as of March 31, 2014
325,840,640 shares as of March 31, 2013
Capital surplus
Retained earnings
Treasury stock
12,109,864 shares as of March 31, 2014
13,632,854 shares as of March 31, 2013
Total shareholders’ equity

75

Business Activities

Corporate Social
Responsibility

Environmental Initiatives

Financial Section /Corporate Information

Consolidated Statements of Income/Consolidated Statements of Comprehensive Income

Consolidated Statements of Income

Consolidated Statements of Comprehensive Income

Toyota Industries Corporation
For the years ended March 31, 2014 and 2013

Toyota Industries Corporation
For the years ended March 31, 2014 and 2013
Millions of yen

Millions of yen

2014

2013

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses:
Sales commissions
Salaries and allowances
Retirement benefit expenses
Depreciation
Research and development expenses
OthersTotal selling, general and administrative expenses
Operating income
Non-operating income:Interest income
Dividends income
Gain on sales of marketable securities
Equity in net earnings of affiliated companies
Other non-operating income
Total non-operating income
Non-operating expenses:
Interest expenses
Loss on disposal of fixed assets
Other non-operating expenses
Total non-operating expenses
Ordinary income
Extraordinary losses:
Loss on liquidation of subsidiaries and affiliates
Total extraordinary losses
Income before income taxes and minority interests
Income taxes—current
Income taxes—deferred
Total income taxes
Income before minority interests
Minority interests in income
Net income¥ 2,007,856
1,651,573
356,282¥ 1,615,244
1,347,238
268,006

Net income per share—basic
Net income per share—diluted
Net assets per share
Cash dividends per share¥ 292.76
292.575,640.08
85.00

13,832
85,831
3,788
11,12539,363
94,647
248,590
107,691

12,24074,452
1,739
8,076
32,20362,196
190,908
77,098

11,20538,602
1,106
2,294
7,319
60,527

9,071
21,084
784
825
5,277
37,04316,023
1,345
12,71830,086138,133

14,508
1,006
11,78927,304
86,836——138,133
40,6703,263
43,934
94,1982,493¥ 91,705

6,710
6,710
80,12627,345(493)
26,851
53,275
155
53,119¥

Income before minority interests

2014

2013

¥ 94,198¥ 53,275

192,795

265,277

97(106)

33,58830,444526

392

227,007

296,008

321,206

349,283

315,759

345,988

5,447

3,295

Other comprehensive income:
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Share of other comprehensive income of associates accounted for using equity method
Total other comprehensive income
Comprehensive income
Profit attributable to:
Owners of the parent
Minority interests

Yen

76

Toyota Industries Report 2014

¥ 170.36
170.35
4,719.66
55.00

77

Corporate Social
Responsibility

Business Activities

Financial Section /Corporate Information

Environmental Initiatives

Consolidated Statements of Changes in Net Assets

Consolidated Statements of Changes in Net Assets
Toyota Industries Corporation
For the year ended March 31, 2014

Balance at March 31, 2013

Toyota Industries Corporation
For the year ended March 31, 2013
Millions of yen

Millions of yen

Shareholders’ equity

Shareholders’ equity

Capital stock

Capital surplus

Retainedearnings¥80,462¥105,898¥492,578

Treasury stock

Total
shareholders’equity¥(48,405)¥630,534

Balance at March 31, 2012

Capital stock

Capital surplus

Retainedearnings¥80,462¥106,128¥455,042

Treasury stock

Total
shareholders’equity¥(50,266)¥591,367

Changes of items during theperiodChanges of items during theperiodDividends from surplus(20,326)(20,326)

Dividends from surplus(15,584)(15,584)

Net income

91,70591,705

Net income

53,11953,119Repurchase of treasury stock
Disposal of treasury stock

(244)

(96)

(96)

Repurchase of treasury stock

5,489

5,245

Disposal of treasury stock

Balance at March 31, 2014

̶

(244)

71,378

5,393

76,527¥80,462¥105,654¥563,957¥(43,012)¥707,062

Total changes of items during theperiod1,741

Balance at March 31, 2013

(230)

37,535

1,861

39,166¥80,462¥105,898¥492,578¥(48,405)¥630,534

Millions of yen

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedgesForeigncurrencytranslation
adjustment¥ 830,054¥(237)¥13,163

Accumulated other comprehensive income

Total
Subscription
Remeasurements accumulated
rights toof defined
othersharesbenefit plans comprehensive
income¥—¥ 842,980¥1,478

Minority
interests

Total net
assets¥49,939¥1,524,933

Changes of items during theperiodBalance at March 31, 2012

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedges¥565,007¥(131)

Foreigncurrencytranslation
adjustment¥(14,763)

Total
Subscription
Remeasurements accumulated
rights toof defined
othersharesbenefit plans comprehensive
income¥—¥550,112¥2,310Minority
interests

Total net
assets¥54,051¥1,197,841

Changes of items during theperiodDividends from surplus(20,326)

Dividends from surplus(15,584)

Net income

91,705

Net income

53,119Repurchase of treasury stock(96)

Repurchase of treasury stock(109)

Disposal of treasury stock

5,245

Disposal of treasury stock

1,741

Net changes of items other thanshareholders’ equity

192,470

97

31,485(4,629)219,423(1,147)

9,588

227,865

Net changes of items other thanshareholders’ equity

265,047(106)

27,927—

292,868(832)(4,111)

287,924

Total changes of items during theperiod192,470

97

31,485(4,629)219,423(1,147)

9,588

304,392

Total changes of items during theperiod265,047(106)

27,927—

292,868(832)(4,111)

327,091¥1,022,525¥(139)¥44,649¥(4,629)¥1,062,404¥ 330¥59,528¥1,829,326

Balance at March 31, 2013

¥830,054¥(237)¥ 13,163—¥842,980¥1,478¥49,939¥1,524,933

Balance at March 31, 2014

78

1,971

̶

Millions of yen

Balance at March 31, 2013(109)

Net changes of items other thanshareholders’ equity

Net changes of items other thanshareholders’ equity
Total changes of items during theperiod

(230)

(109)

Toyota Industries Report 2014¥79

Business Activities

Corporate Social
Responsibility

Environmental Initiatives

Financial Section /Corporate Information

Consolidated Statements of Cash Flows/
Board of Directors, Audit & Supervisory Board Members and Managing Officers

Board of Directors, Audit & Supervisory Board
Members and Managing Officers

Consolidated Statements of Cash Flows(As of June 13, 2014)

Toyota Industries Corporation
For the years ended March 31, 2014 and 2013

Board of Directors
Millions of yen

Cash flows from operating activities:
Income before income taxes and minority interests
Depreciation and amortization
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Interest and dividends income
Interest expenses
Equity in net (earnings) losses of affiliates(Increase) decrease in receivables(Increase) decrease in inventories
Increase (decrease) in payables
Others, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes (paid) refunded
Net cash provided by operating activities
Cash flows from investing activities:
Payments for purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Payments for purchases of investment securities
Proceeds from sales of investment securities
Payments for acquisition of subsidiaries’ stock resulting in change in scope of consolidation
Proceeds from acquisition of subsidiaries’ stock resulting in change in scope of consolidation
Payments for sales of subsidiaries’ stock resulting in change in scope of consolidation
Payments for loans madeProceeds from collections of loans
Net (increase) decrease in time deposits
Others, net
Net cash used in investing activities
Cash flows from financing activities:
Increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of bonds
Repayments of bonds
Payments for repurchase of treasury stocks
Cash dividends paid
Cash dividends paid to minority shareholders
Proceeds from payment by minority shareholders
Others, net
Net cash provided by financing activities
Translation adjustments of cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

80

Toyota Industries Report 2014

2014

2013

¥ 138,133
111,826—504(49,807)
16,023(2,294)(13,469)(15,459)
6,305(32,107)
159,655
49,782(15,517)(38,861)
155,059¥ 80,126
90,7564,516
26(30,156)
14,508(825)(475)(6,041)
2,929
4,981
160,346
30,181(14,688)(24,540)
151,299(131,672)
12,879(32,015)
2,211(1,137)
265
—
(867)
640
38,390(7,177)(118,483)(112,430)
8,137(14,679)987(68,503)
—
(505)
(13)
275
(64,435)(23,043)(274,210)(59,236)
128,203(60,721)
26,660(4,505)(96)(20,326)(454)
270(3,609)6,183
4,286
47,046
179,359¥ 226,406

51,78645,425(49,382)
30,000(54,125)(109)(15,584)
(435)
1,899
(2,423)7,050(1,591)(117,451)
296,811¥ 179,359

ChairmanPresident

Tetsuro Toyoda

Akira Onishi

Executive Vice President

Executive Vice President

Executive Vice President

Chiaki Yamaguchi

Kazue Sasaki

Hirotaka Morishita

Senior Managing Directors

Shinya Furukawa
Masaharu Suzuki
Norio Sasaki
Toshifumi Ogawa

Directors

Toshifumi Onishi
Takaki Ogawa
Kan Otsuka
Taku Yamamoto

Keiichi Fukunaga
Fujio Cho
Shuzo Sumi

Audit & Supervisory Board Members
Full-Time Audit & Supervisory Board Members

Kakuo Ishikawa
Kohei Nozaki

Audit & Supervisory Board Members

Toshio Mita
Hans-Juergen Marx
Satoshi Ozawa

Managing Officers
Senior Managing Officers

Hiroaki Asai
Hirooki Fujiwara
Yukihisa Tsuchimoto
Takashi Ito

Managing Officers

Toshiya Yamagishi
Junichi Harada
Mikihiko Okamoto
Yasuhiro Murata
Yojiro Mizuno
Masahiro Kawaguchi
Susumu Toyoda
Yuji Ishizaki
Keizo Hara
Kiyotsugu Kurimoto

Masafumi Kunito
Toshihiko Shimizu
Koichi Ito
Yasushi Kawai
Hiroaki Kayukawa
Kazuyuki Yamaguchi
Toru Inagawa
Hiroshi Matsumoto
Kota Otoshi

81Business Activities

Corporate Social
Responsibility

Financial Section /Corporate Information

Environmental Initiatives

Major Consolidated Subsidiaries

Major Consolidated Subsidiaries(As of March 31, 2014)*Including indirect investment

Segment

Company Name

Location

Ownership
Ratio* (%)

Business Activities

Automobile

Logistics

Country

BT Products AB

MjölbyProduction of materials handling equipment

100.0

Aichi Corporation

Ageo-shi, Saitama

Production of aerial work platforms

52.2

Toyota Industries Europe AB

MjölbyHolding company for materials handling equipment business in Europe

100.0

TOYOTA L&F Fukui Co., Ltd.

Fukui-shi, Fukui

Sales and servicing of materials handling equipment

100.0

Toyota Material Handling Europe AB

MjölbyEuropean headquarters for materials handling equipment business

100.0

TOYOTA L&F Tokyo Co., Ltd.

Shinagawa-ku, Tokyo

Sales and servicing of materials handling equipment

100.0

Toyota Material Handling Sweden AB

BrommaSales and servicing of materials handling equipment

100.0

Nishina Industrial Co., Ltd.

Nagano-shi, Nagano

Production of materials handling equipment and construction machinery parts

97.5

NorwayToyota Material Handling Norway AS

Trondheim

Sales and servicing of materials handling equipment

100.0

TOYOTA L&F Shizuoka Co., Ltd.

Shizuoka-shi, Shizuoka

Sales and servicing of materials handling equipment

100.0

Finland

Toyota Material Handling Finland OY

VantaaSales and servicing of materials handling equipment

100.0

HANDA Casting Company

Handa-shi, Aichi

Production of foundry parts

100.0

Denmark

Toyota Material Handling Danmark A/SSlangerup

Sales and servicing of materials handling equipment

100.0

Unica Co., Ltd.

Kiyosu-shi, Aichi

Production of in-house transporters

100.0

LatviaToyota Material Handling Baltic SIA.

Riga

Sales and servicing of materials handling equipment

100.0

TOYOTA L&F Hyogo Co., Ltd.

Nishinomiya-shi, Hyogo

Sales and servicing of materials handling equipment

100.0

PolandToyota Material Handling Polska Sp. z o.o.

Tokaiseiki Co., Ltd.

Iwata-shi, Shizuoka

Production of compressor and engine parts

100.0

Czech Republic Toyota Material Handling CZ s.r.o.

SwedenPruszków

Sales and servicing of materials handling equipment

100.0

Rudna

Sales and servicing of materials handling equipment

100.0

Altex Co., Ltd.

Hamamatsu-shi, Shizuoka

Production of compressor parts

100.0

Slovakia

Toyota Material Handling Slovensko s.r.o.

Bratislava

Sales and servicing of materials handling equipment

100.0

IZUMI MACHINE MFG. CO., LTD.

Obu-shi, Aichi

Production of specialized machine tools, friction welding machines, automotive parts

100.0

Hungary

Toyota Material Handling Hungary Ltd.

Budapest

Sales and servicing of materials handling equipment

100.0

Nagao Kogyo Co., Ltd.

Nagoya-shi, Aichi

Production of compressor, materials handling equipment and textile machinery parts

100.0

Romania

Toyota Material Handling Romania s.r.l.

Bucharest

Sales and servicing of materials handling equipment

100.0

Miduho Industry Co., Ltd.

Nagoya-shi, Aichi

Production of automotive, compressor and materials handling equipment parts

100.0

RussiaOOO Toyota Material Handling RUS

MoscowSales and servicing of materials handling equipment

100.0

Iwama Loom Works, Ltd.

Oguchi-cho, Niwa-gun, Aichi Production of compressor parts

100.0

Switzerland

Toyota Material Handling Schweiz AG

ZürichSales and servicing of materials handling equipment

50.0

Tokyu Co., Ltd.

Oguchi-cho, Niwa-gun, Aichi Production of compressor parts and industrial machinery

100.0

Austria

Toyota Material Handling Austria GmbH

Wiener Neudorf

Sales and servicing of materials handling equipment

100.0

KTL Co., Ltd.

Koto-ku, TokyoManagement and operation of distribution centers

50.5

Wanbishi Archives Co., Ltd.

Minato-ku, Tokyo

Data storage, management, collection and delivery services

100.0

Materials
Handling
Equipment

BelgiumToyota Material Handling Europe Brussels NV/SA Brussels

Sales and marketing of materials handling equipment

100.0

Toyota Material Handling Belgium NV/SA

Wilrijk

Sales and servicing of materials handling equipment

100.0
100.0

Asahi Security Co., Ltd.

Minato-ku, Tokyo

Cash collection and delivery and cash proceeds management

100.0

Netherlands

Toyota Material Handling Nederland B.V.

Ede

Sales and servicing of materials handling equipment

Taikoh Transportation Co., Ltd.

Kariya-shi, Aichi

Land transportation services

53.1

U.K.

Toyota Material Handling UK Limited

Slough, Berkshire

Sales and servicing of materials handling equipment

100.0

Advanced Logistics Solutions Co., Ltd.

Takahama-shi, Aichi

Planning, design and operation of distribution centers

100.0

Germany

Toyota Material Handling Deutschland GmbH

Isernhagen

Sales and servicing of materials handling equipment

100.0

Ikeda-cho, Ibi-gun, Gifu

100.0

Toyota Industrial Equipment, S.A.

AncenisProduction of materials handling equipment

100.0

Toyota Material Handling France SAS

Marne La ValléeSales and servicing of materials handling equipment

100.0

Toyota Material Handling España, S.A.

Barberá del VallésSales and servicing of materials handling equipment

100.0

100.0

CESAB Carrelli Elevatori S.p.A.

Bologna

Production of materials handling equipment

100.0

Toyota Material Handling Italia S.r.l.

Bologna

Sales and servicing of materials handling equipment

100.0

Toyota Material Handling Greece SA

Markopoulo, Attica

Sales and servicing of materials handling equipment

100.0

TD Deutsche Klimakompressor GmbH

Bernsdorf

Production of compressors

65.0

Sun Staff, Inc.

Kariya-shi, Aichi

Production of textile machinery and materials handling equipment parts
Total construction management, security management, civil engineering/construction design work andreal estate management
Personnel placement, contract office staffing

Sun Valley Inc.

Kariya-shi, Aichi

Sales of goods, travel agency, organizing and running of events

100.0

Italy

Shine’s Co., Ltd.

Kariya-shi, Aichi

Management and operation of employee clubs

100.0

GreeceToyota Industries Well Support Corporation Kariya-shi, Aichi

Planning and operation of benefit programs; administrative processing services for payroll accounting, etc.

100.0

Toyoda High System, Incorporated

Kariya-shi, Aichi

Planning, development, formulation and operation of information infrastructure and systems

100.0

Sun River Co., Ltd.

Suita-shi, Osaka

Sports facilities, real estate lease, restaurant management

100.0

Kariya-shi, Aichi

France

100.0
Spain

Automobile

Country

Company Name

Location

Business Activities

Ownership
Ratio* (%)

OthersGermany

Toyota Industries Electric Systems Europe GmbH München

Development and sales of electronics products

90.0

Toyota Textile Machinery Europe, AG

Uster

Sales and servicing of textile machinery

100.0

Uster Technologies AG

Uster

Production of yarn quality measurement instruments and cotton classing instruments

100.0

Toyota Industries Finance International AB

MjölbyFunding, loan, other financial services

100.0

India

Toyota Material Handling India Pvt. Ltd.

Delhi

Sales and servicing of materials handling equipment

75.0

Vietnam

Toyota Industrial Equipment Vietnam Co., Ltd.

Hung Yen

Production of materials handling equipment parts

90.0

U.S.A.

CanadaU.S.A.

Cascade Corporation

Portland, Oregon

Production of materials handling equipment parts

100.0

Indiana Hydraulic Equipment, Corp.

Franklin, Indiana

Production of materials handling equipment parts

100.0

Industrial Components and Attachments, Inc.

Portland, Oregon

Holding company for materials handling equipment business in the U.S.A.

100.0

North Vernon Industry Corp.

North Vernon, Indiana

Production of materials handling equipment parts

100.0

Raymond-Muscatine Inc.

Muscatine, Iowa

Production of materials handling equipment

100.0

The Raymond Corporation

Greene, New York

Production of materials handling equipment

100.0

Toyota Industrial Equipment Mfg., Inc.

Columbus, Indiana

Production of materials handling equipment

100.0

Toyota Material Handling North America, Inc.

Columbus, Indiana

North American headquarters for materials handling equipment business

100.0

Toyota Material Handling, U.S.A., Inc.

Columbus, Indiana

Sales of materials handling equipment

100.0

G. N. Johnston Equipment Co., Ltd.

Mississauga, Ontario

Sales and servicing of materials handling equipment

100.0

Michigan Automotive Compressor, Inc.

Parma, Michigan

Production of compressors

60.0

TD Automotive Compressor Georgia, LLC

Pendergrass, Georgia

Production of compressors

77.4

Toyota Industries Compressor Parts America, Co. Pendergrass, Georgia

Production of compressor parts

100.0

Toyota Industries Electric Systems North America, Inc. Novi, Michigan

Development and sales of electronics products

90.0

Textile Machinery U.S.A.

Toyoda Textile Machinery, Inc.

Charlotte, North Carolina Sales and servicing of textile machinery

100.0

OthersToyota Industries North America, Inc.

Columbus, Indiana

100.0

U.S.A.

North American headquarters

Australia
Materials
Handling
Equipment

China

New South Wales

Sales and servicing of materials handling equipment

100.0

Foshan, Guandong

Production of materials handling equipment

100.0

India
Indonesia

P.T. TD Automotive Compressor Indonesia

Bekasi

Production of compressors

50.1

Toyota Industry (Kunshan) Co., Ltd.

Kunshan, Jiangsu

Production of automotive parts and materials handling equipment, etc.

63.7

TD Automotive Compressor Kunshan Co., Ltd.

77.6

MexicoAutomobile
China
Logistics

Toyota Material Handling Australia Pty Limited
BT Manufacturing (Foshan) Co., Ltd.

Toyota Material Handling (Shanghai) Co., Ltd.
ShanghaiToyota Material Handling Mercosur Indústria eSão Paulo
Comércio de Equipamentos Ltda
Toyota Material Handling Capital S.A.P.I. de C.V.,
Santiago de Querétaro
SOFOM E.N.R.
Kirloskar Toyota Textile Machinery Pvt. Ltd.
Bangalore

BrazilChina

Textile Machinery China

Sales of materials handling equipment

75.0

Production, sales and servicing of materials handling equipment

100.0

Rental and leasing of materials handling equipment

100.0

Production of textile machinery and automotive parts

97.9

Kunshan, Jiangsu

Production of compressors

Yantai Shougang TD Automotive Compressor Co., Ltd. Yantai, Shandong

Production of compressors

50.1

Toyota Industries Management (China) Co., Ltd.

Shanghai

Logistics-related services for China-based companies

100.0

Toyota Textile Machinery (Shanghai) Co., Ltd.

ShanghaiInstallation and servicing of textile machinery

100.0

Jelcz-Laskowice

Production of diesel engines

40.0■ Affiliates Accounted for by the Equity Method
Automobile

Toyota Industries Report 2014

SwedenOthersNorth America

82

Ownership
Ratio* (%)

100.0

Textile Machinery Switzerland

Automobile

Business Activities

Sales and servicing of materials handling equipment*Including indirect investment

Materials
Handling
Equipment

Location

Akita-shi, Akita

SKM CORPORATION

Segment

Company NameTOYOTA L&F Akita Co., Ltd.

Textile Machinery Hara Corporation

OthersSegment
EuropeJapan

Materials
Handling
Equipment*Including indirect investment

PolandToyota Motor Industries Poland Sp. z o.o.

83Business Activities

Corporate Social
Responsibility

Environmental Initiatives

Financial Section /Corporate Information

Major Production Bases/
Investor Information

Major Production Bases

Investor Information(As of March 31, 2014)■ Major Plants (Parent Company)
Plant

Location

Main Products

Start of Operations

Kariya Plant

Kariya-shi, Aichi

Textile machinery, compressors

1927

Obu PlantObu-shi, Aichi

Parts for compressors

1944

Kyowa Plant

Obu-shi, Aichi

Electronic equipment, automotive press dies, production facilities, engine parts

1953

Nagakusa Plant

Obu-shi, Aichi

Vehicles1967(As of March 31, 2014)

Corporate Head Office

Stock Exchange Listings

TOYOTA INDUSTRIES CORPORATION
2-1, Toyoda-cho, Kariya-shi, Aichi, 448-8671, Japan
Telephone: +81-(0)566-22-2511
Facsimile: +81-(0)566-27-5650

Tokyo and Nagoya (Ticker Code: 6201)

Number of Shareholders
16,799Takahama Plant

Takahama-shi, Aichi

Materials handling equipment, materials handling systems

1970

Date of Establishment

Independent Accountant

Hekinan Plant

Hekinan-shi, Aichi

Diesel engines, gasoline engines

1982

November 18, 1926

Higashichita Plant

Handa-shi, Aichi

Foundry parts, diesel engines

2000

Higashiura Plant

Higashiura-cho, Chita-gun, Aichi Parts for compressors

2002

Common Stock

PricewaterhouseCoopers Aarata
Sumitomo Fudosan Shiodome Hamarikyu Bldg.
8-21-1 Ginza, Chuo-ku, Tokyo, 104-0061, Japan

Anjo Plant

Anjo-shi, Aichi

2007

No par value
Authorized: 1,100,000,000 shares
Issued:325,840,640 shares

Transfer Agent
Special Account Management Institution

Capital Stock

Mitsubishi UFJ Trust and Banking Corporation
1-4-5, Marunouchi, Chiyoda-ku, Tokyo, 100-8212, Japan

Electronic equipment■ Major Plants (Outside Japan)

80,462 million yen

Major Shareholders (Top 10)
Number of Shares Held(Thousands)

Percentage of Total
Shares in Issue (%)

Toyota Motor Corporation

76,60023.51

DENSO Corporation

29,647

9.10

Towa Real Estate Co., Ltd.

15,697

4.82

Toyota Tsusho Corporation

15,294

4.69

The Master Trust Bank of Japan, Ltd. (Trust Account)

9,801

3.01

Name

5
■
8■
9
■
7
■
6
■

2
3 ■
■
1
■
4
■

11 ■
12
■
13
■
10
■
14
■

15
■

Nippon Life Insurance Company

6,657

2.04

Aisin Seiki Co., Ltd.

6,578

2.02

Japan Trustee Services Bank, Ltd. (Trust Account)

5,355

1.64

Toyota Industries Corporation Employee Ownership Program

4,586

1.41

State Street Bank Client Omnibus OM04

4,236

1.30

174,456

53.54

Total

Company Name

84

Country

Location

Main Products

Year of Foundation1

Toyota Industrial Equipment Mfg., Inc.

U.S.A.

Columbus, Indiana

Materials handling equipment

1988

2

The Raymond Corporation

U.S.A.

Greene, New York

Materials handling equipment

1922

3

Michigan Automotive Compressor, Inc.

U.S.A.

Parma, Michigan

Compressors

1989

4

TD Automotive Compressor Georgia, LLC

U.S.A.

Pendergrass, Georgia

Compressors

2004

5

BT Products AB

SwedenMjölbyMaterials handling equipment

1946

6

CESAB Carrelli Elevatori S.p.A.

Italy

Bologna

Materials handling equipment

1942

7

Toyota Industrial Equipment, S.A.

FranceAncenisMaterials handling equipment

1995

8

TD Deutsche Klimakompressor GmbHGermany

Bernsdorf

Compressors

1998

9

Toyota Motor Industries Poland Sp. z o.o.

PolandJelcz-Laskowice

Diesel engines

2002

10 Kirloskar Toyota Textile Machinery Pvt. Ltd.

India

Bangalore

Automotive parts, textile machinery

1995

11 Toyota Industry (Kunshan) Co., Ltd.

China

Kunshan, Jiangsu

Automotive parts, materials handling equipment, etc.

1994

12 TD Automotive Compressor Kunshan Co., Ltd.

China

Kunshan, Jiangsu

Compressors

2005

13 Yantai Shougang TD Automotive Compressor Co., Ltd. China

Yantai, Shandong

Compressors

2012

14 P.T. TD Automotive Compressor Indonesia

Indonesia

BekasiCompressors

2011

Toyota Material Handling Mercosur Indústria e
15
Comércio de Equipamentos Ltda

BrazilSão Paulo

Materials handling equipment

2004

Toyota Industries Report 2014

Notes: 1. Toyota Industries Corporation also holds 12,109 thousand shares of treasury stock but is excluded from the above list.
2. Shares held for the purpose of trust services of respective banks are as follows:
The Master Trust Bank of Japan, Ltd. (Trust Account)
9,801 (Thousands)
Japan Trustee Services Bank, Ltd. (Trust Account)
5,355 (Thousands)

Distribution of Shares
0.6%
3.7%
7.1%
Japanese corporate entities
Foreign corporate entities and others

16.5%

48.2%

Japanese financial institutions
Individuals, etc.
Treasury stock

23.9%

Japanese brokerages

85Toyota Industries Report
Toyota Industries Report 2014

2-1, Toyoda-cho, Kariya-shi, Aichi 448-8671, Japan
Telephone: +81-(0)566-22-2511 Facsimile: +81-(0)566-27-5650
www.toyota-industries.com

This report is printed on FSC™-certified paper that contributes to forest conservation
with ink derived from vegetables using a waterless printing process.
Printed in Japan

Year ended March 31, 2014