F O C U S

2Globalization of the Materials
Handling Equipment Segment
Toyota Industries’ Materials Handling Equipment Segment, aworld leader in the production and sale of forklift trucks,
comprises TOYOTA Material Handling Company (“TMHC”) and
BT Industries AB (“BT Industries”). TMHC is a global leader incounterbalanced forklift trucks, whereas BT Industries is aleading supplier in the world for warehouse equipment. The
two companies operate as parallel groups, collaborating
globally as equal strategic partners and marketing eachother’s products on an OEM basis.
is intensifying, marked by cross-border consolidation and

Brand Portfolio of the Materials Handling
Equipment Segment

alliances. By assuming the industrial equipment sales and

The Materials Handling Equipment Segment continues tomarketing operations of Toyota Motor Corporation (“TMC”)

provide products under the TOYOTA and BT brands. TMHC

and acquiring BT Industries, we have strengthened ouruses the brand name TOYOTA L&F in Japan and Toyota

position as a global leader distinguished by our

Industrial Equipment in other regions. BT Industries uses

comprehensive lineup, superior technologies andprimarily the brand names BT in Europe and other regions andresponsiveness to customer needs.

Raymond in North America. While maintaining their own

Competition in the materials handling equipment market

brand names, TMHC and BT Industries cooperate closely inseeking to maximize benefits of synergy on a global scale.

TOYOTA Material Handling Company

BT Industries AB

Japanese market

European market

Non-Japanese markets

North American market

Industrial equipment made by TMHC is sold in Japan
under the brand name of TOYOTA L&F (Logistics and
Forklifts), which refers to materials handling systems andindustrial vehicles and equipment. Outside Japan, thesignature of TOYOTA INDUSTRIAL EQUIPMENT is used.

BT Industries uses the brand names BT in Europe andother regions and Raymond in North America.
BT Industries also uses the Cesab, Prime-Mover andLift-Rite brand names in certain markets.

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F O C U S

2TOYOTA Material Handling Company
Gearing Up for Future Growth

For calendar 2002, TMHC achieved a record-high market

TMHC was created in April 2001 after Toyota Industries tookshare of 41.2% in Japan, exceeding 40% for the fourth

over the industrial equipment sales and marketing operations

consecutive year. This marked the thirty-seventh consecutiveof TMC. From 1956, when the first TOYOTA-brand forklift truck

year that TMHC was No. 1 in the forklift truck industry. On a

was launched, TMC had been responsible for the sales andfiscal year basis (April 2002 to March 2003), its market sharemarketing of materials handling equipment developed andwas 41.5%.

manufactured by Toyota Industries. With the transfer, Toyota

In calendar 2002, the GENEO-R (7FBR outside Japan) reachIndustries assumed full responsibility for all materials handlingtruck achieved a top market share in Japan for the second

equipment operations on a global basis.

consecutive year. The GENEO Series (7-Series outside Japan),This consolidation positions materials handling equipment

including the GENEO (7FG/D) internal combustion

as a core business within the Toyota Group, and underlines

counterbalanced forklift truck introduced to the market in

Toyota Industries’ status as one of the world’s leading

September 1998, has established a position as the forklift ofcomprehensive manufacturers in the field. The integration of

choice, featuring excellent safety, handling and operability.

development and manufacturing expertise with strong sales

Under the TOYOTA L&F brand, TMHC introduced

and marketing capabilities makes for more flexible

BT Industries’ hand pallet trucks and electric pallet trucks on

management, faster decision-making and strengthened global

an OEM basis into the Japanese market in April 2001 and May

competitiveness.

2002, respectively, in order to enhance its warehouse truck

TMHC also subsumed some of TMC’s domestic forklift truck

lineup. TMHC aims to expand the warehouse equipment

sales subsidiaries and the Industrial Equipment Division ofmarket, still a small segment in Japan, through the

Toyota Motor Sales, U.S.A., Inc., also transferred in April 2001.

introduction of more BT Industries products as well as vigorous

We also absorbed other related operations, including TMC’ssales and marketing activities.

industrial equipment sales subsidiaries in Europe.
For more information on TMHC’s global sales network andproducts, please visit www.global-toyotaforklifts.com.

Although the Japanese forklift truck market is expected to
improve marginally in 2003, a full recovery will take longer. In
these circumstances, we will respond precisely to customer
needs, promote fleet management contracts and offer

Operations in Japan

materials handling solutions optimized for each customer,

The forklift truck markets in advanced countries, including

thereby aiming at further expansion of sales and market share.

Japan, are maturing, and demand therefore tends to follow the

TMHC supplies TOYOTA-brand forklift trucks and materials
handling systems through an established sales network of 42

business cycle.
Since the bubble burst in Japan in the early 1990s, its

dealers throughout Japan.

economy has been in a slump. Although calendar 2002 saw
total demand in the domestic forklift truck market decrease by

Operations in China

7.5% from 2001, TMHC outperformed the market by keeping

Following China’s rapid economic growth, its forklift truck

the decrease in unit sales to 6.3%. TMHC embarked on sales

market is expected to grow from approximately 25,000 units inpromotion activities that focused on optimized materials

2002 to more than 30,000 units in 2005. The number of forklift

handling solutions. For example, it marketed high-quality

trucks produced by foreign companies (i.e., excluding those

products, provided prompt and reliable services, and engaged

manufactured by Chinese companies) is expected to growin a full-fledged “fleet management” program of materials

from approximately 7,000 units in 2002 to more than 10,000

handling equipment such as forklift trucks, thus contributing

units in 2005 as deregulation in the country proceeds. In

to further cost reduction for our customers.

anticipation of expanding demand, TMHC constructed a new
forklift truck assembly plant within the premises of Toyota

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TOYOTA INDUSTRIES CORPORATIONANNUAL REPORT 2003

Industry (Kunshan) Co., Ltd. (“TIK”), a subsidiary of Toyota
Industries which is engaged in the production of foundry partsin Kunshan, Jiangsu Province, China. TIK began production of
forklift trucks in April 2003. TIK is currently assembling 1-3 ton
internal combustion forklift trucks, top-sellers in China, with aplanned production of 550 units in calendar 2003. Closely
monitoring the trend in demand, TIK will gradually increase
unit production as well as the number of models.
In May 2003, we established Toyota Material Handling(Shanghai) Co., Ltd. as a distributor of forklift trucks in China.
Sales in that country were previously conducted through three
dealers at seven sales bases. The new company, which started
operations in June 2003, will take the initiative in forging astronger sales network. We now have 12 local dealers at 19
sales bases (as of June 30, 2003), mainly along the coastal area.
Products are provided by TIK and TMHC from Japan to

TMHU’s headquarters in Irvine, California

strengthen product competitiveness in the growing Chinese
market. For calendar 2003, Toyota Material Handling(Shanghai) aims to sell 1,000 units.

Headquartered in Irvine, California, TMHU has establishedits leadership through superior engineering, technologicaladvancements and a commitment to quality products andOperations in Australia

service. As a result of the company’s continued growth, 99%

In June 2003, Toyota Industries established Toyota Industries

of TOYOTA forklift trucks sold in the U.S. are assembled in

Corporation Australia Pty Limited (“TICA”) as a new distributor,

North America. Most of the trucks are assembled by Toyota

with a view to expanding sales of forklift trucks and otherIndustrial Equipment Mfg, Inc. (“TIEM”) at its state-of-the-art

materials handling equipment in the local market. TICA started

facility in Columbus, Indiana.

operations on July 1 after taking over the materials handlingequipment sales operations of Toyota Motor Corporation
Australia Ltd., which was responsible for sales of TOYOTAbrand materials handling equipment in the country. TICA ischarged with forging a stronger local sales structure, and plansto sell 2,000 units of materials handling equipment during
calendar 2003.

Operations in the United States
America’s No. 1 Selling Forklift Truck Supplier
The U.S. forklift truck market in calendar 2002 was down 2%
from 2001. However, sales by Toyota Material Handling, USA,

TIEM’s plant in Columbus, IndianaInc. (“TMHU”) increased 8%. TMHU’s innovation, dedication andcommitment during 35 years in the U.S. market has paid

Long-Term Value

dividends; in 2002 TMHU was the No. 1 full-line forklift truck

TMHU attributes much of its success to Toyota’s commitment

supplier in the U.S. for units sold.

to safety, efficiency and productivity in its product designs,

Offering a full line of top-quality products, TMHU iswhich translates into long-term value for its customers.

supported by a world-class dealer network and has earned theDramatic advancements in technology, such as the System of

loyalty of its customers through an unmatched commitment

Active Stability (SAS) and Active Mast Control (AMC), help

to service and customer support.

TOYOTA INDUSTRIES CORPORATIONANNUAL REPORT 2003

19

F O C U S

2Survey program and also conducted a Dealer Satisfaction
Study this year.
For 2003, TMHU’s new e-Learning Web site offers dealers
24-hour access to sales, technical and Toyota Financial
Services training, as well as monthly articles, quizzes, bulletinsand more.

Exceptional Dealer Network
TMHU markets its full line of high-quality forklift trucks under
the Toyota Industrial Equipment brand. Its nationwide
network of 79 dealers at 183 dealership locations leads theindustry in outstanding customer service and productsupport. Dealer consultants are experts at meeting customer
TMHU’s new 7-Series three-wheel electric forklift truck sets new
standards in productivity, energy efficiency and safety

reduce the risk of accidents and injuries, minimize thepotential for product and equipment damage, and maintain ahigher level of productivity. This revolutionary electric control
system can detect and respond to changes in forklift
operation to maintain stability and help prevent tipovers.
These advances in safety and reliability mean lower cost ofownership over the life of a truck, improving productivity
while reducing accidents and related downtime.

needs at every level, whether it involves a single truck or acomplete fleet management program, and they are backed by
TMHU’s extensive resources. These include factory-trained
service technicians, STARLIFT parts, Toyota Certified Used
forklift trucks, and flexible leasing and financing packages
through Toyota Financial Services.
This support, combined with years of experience andinnovation, means that TMHU’s complete line of quality forklift
trucks offers a solution for every application. For more
information on TMHU products and services, please visit
www.toyotaforklift.com.

Anticipating Customer Needs
With advanced technology and a world-renowned
manufacturing process, TMHU has earned an industry-wide
reputation for high-quality, reliable products across all
categories. As TMHU looks to the future, productdevelopment efforts are designed to anticipate customer
needs for environmental and safety concerns, reduced

Operations in Europe
TIEE Increases Market Share Supported by
Product Launches
For Toyota Industrial Equipment Europe, S.A.R.L. (“TIEE”), theEuropean division of TMHC, the year 2002 was a periodmarked by a number of significant developments. In particular,

operating expenses and increased productivity.
For example, as demand grows for energy-efficient electric
forklift trucks, TMHU is introducing its new line of 7-Series
three-wheel electric forklift trucks. These new models feature
Toyota’s revolutionary AC technology, which results inindustry-leading productivity and energy efficiency.

The Year Ahead
The industry is expecting modest growth for the coming year.
In order to maintain its leadership position, TMHU is focusing
on growth in national and fleet account penetration,customer satisfaction and dealer training. TMHU recently
launched a comprehensive, new Customer Satisfaction
7FBMF—TIEE’s revolutionary electric counterbalanced forklift truck

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TOYOTA INDUSTRIES CORPORATIONANNUAL REPORT 2003

TIEE continued to expand its range of warehouse equipment
and forklift trucks, and also further strengthened its regional
distribution network.
The highlight of 2002 was the introduction of therevolutionary four-wheel 7FBMF forklift truck in France in June.
This machine is available in nine different models, making itsuitable for a wide range of applications in industries such as
food, beverages, paper and metal processing. During the year anumber of innovative new products, including the Generation
7 Stacker Series, the 7FBRE reach truck and the Easymover,were launched and these have already achieved considerable
success on the European market.

TIEE’s European Sales & Marketing Office in Belgium

In March 2003, TIEE took part in the Salon de la Manutention
trade show in Paris, where it introduced its brand new three-total. TIEE, however, was able to increase its share of thiswheel forklift truck, the 7FBEF. Designed for use in a range ofmarket to 11% over the course of the year.

applications and industries, this is a high-performance

The market for warehouse equipment in the same region

multipurpose truck, equipped with state-of-the-art safety andwas more resilient in the face of the economic downturn, andergonomic features. It can operate as easily in warehouses andrecorded a decrease of just over 7%. Thanks to the many

confined production environments as in outdoor applications.

innovative products launched in the sector in 2002, TIEE
increased its sales in this particular market by almost 50%.
Looking ahead, 2003 may see a small recovery in European
market conditions. This could stabilize the regional materials
handling market at its current level and prevent any further
deterioration compared with the tough 2002. The downside
risks are still significant though, and uncertainties surrounding
the political and military situation in the Middle East could
have a significant negative impact on any recovery. Yet TIEE isconfident it will once again outperform these difficult market

Toyota Industrial Equipment, S.A. (“TIESA”), our forklift truck production base in
France, manufactures more than 9,000 forklift trucks annually for the European
marketOperational Results Outperform the Market
Difficult market conditions made 2002 a very challenging
period. The economic downturn that started in 2001
continued throughout 2002, adversely affecting the market,
which contracted by over 8% overall compared to theprevious twelve months.
Despite this, TIEE turned in a very good commercial
performance, achieving an increase in sales of almost 10%compared with 2001. This was the second consecutive yearthat TIEE well outperformed the market.
The European market for counterbalanced forklift trucks
experienced the biggest decline as a result of the generalconditions. This confidence is supported by TIEE’s excellent
results in very difficult market conditions in 2002.
Throughout 2003, TIEE will carry on strengthening its
position within the European market. It will continue efforts toextend its European sales, distribution and after-sales network,with a view to ensuring quick and effective responses tocustomer demands.
TIEE’s key aims for 2003 are to shorten lead-times, reduce
costs and increase customer satisfaction levels. The ultimate
goal is to provide European customers with optimum materials
handling solutions, and TIEE is now well on the way towardachieving this objective.
For more information on products and services, visit
www.tiee.com.
Note: The fiscal years of Toyota Material Handling USA, Inc. and Toyota
Industrial Equipment Europe, S.A.R.L. run from January 1 to December 31.

economic conditions. Sales in this sector fell by around 10% in

TOYOTA INDUSTRIES CORPORATIONANNUAL REPORT 2003

21

F O C U S

2BT Industries
In June 2000, Toyota Industries acquired BT Industries, a Swedish warehouse truck manufacturer.
BT Industries is our strategic partner in the field of materials handling equipment.
Note: The fiscal year of BT Industries, unlike that of Toyota Industries, runs from January 1 to December 31.

Statement by the President of BT Industries

BT Industries Stays Strong
We are represented in some 70 countries in every part of the globe and are the world’s leading supplier of warehouse trucks.

Strategic Position
During the 1990s we systematically built up the strategic
position we hold today. This was facilitated by strong finances,which gave us the freedom to maneuver, as well as thecommitment of employees at all levels of the company.
In less than 10 years BT Industries has been transformed
from primarily a Western European company into a worldleading group with slightly over 20% of the global market for
warehouse trucks. The foundation was laid during a period of
structural growth through acquisitions in strategicallyimportant markets, thanks to which we are now the only
major company that can offer a wide range of forklift trucks
that meet both European and U.S. standards. Through theseacquisitions, our product range has been expanded to also
include counterbalanced forklift trucks, mostly electricpowered.
The global economy was in a worse condition in 2002 than
Per Zaunders

for many years. The weak economic climate and uncertainty

President

that resulted also affected the forklift truck industry, where
customers have shown less willingness to invest. BT Industries
operates in an environment, however, in which economic

product volume does not fluctuate noticeably with thefluctuations often have less impact than for many othereconomy’s ups and downs. On the other hand, the structuresindustries. Among our strengths are our customer base,and habits of these industries with regard to materials

geographic diversification and breadth of product range,

handling are constantly changing. In recent decades, many ofwhich to a large extent comprises services that are not directly

our customers have grown from national companies todependent on new product sales.

international groups. Their global presence demands that webe able to provide materials handling throughout the world,

22

Structural Changes

which has been a strong reason for our geographic growth

Around half of our business is generated from customers instrategy.

consumer-oriented industries. These companies are often

Structural changes are continuing among BT Industries’

global players, for whom efficient logistics is decisive tocustomers, particularly those that are consumer-oriented, andprofitability and survival. They are less cyclical, since theiramong forklift truck manufacturers. These changes reflect the

TOYOTA INDUSTRIES CORPORATIONANNUAL REPORT 2003

efforts of everyone involved to adapt to a global economy, agenerally higher pace of change and a desire to maintain or
improve profitability through economies of scale. In the last
five years, BT Industries has played a leading role in the
restructuring and consolidation of the forklift truck industry
and achieved a world-leading position in warehouse trucks.
Toyota Industries’ acquisition of BT Industries in 2000 createdthe world’s largest overall forklift truck company as well as
the leader in both warehouse and counterbalanced trucks.
Further consolidation and structural changes at the customer
level and among other companies in the forklift truck
industry are to be expected.
The changes in the forklift truck market are reflected in
growth for BT Industries’ three geographic business areas.
BT EUROPE and BT RAYMOND operate in mature markets,
which are expected to maintain about the same long-term
growth rates as before—6-7% annually on average.
BT INTERNATIONAL’s market has greater growth potential
percentage-wise. Rising standards of living in Latin America,
Southeast Asia and Eastern Europe, for example, areproducing changing consumption patterns and logistics
needs very much like those in Western Europe and North
America.

Change is an Improvement
BT Industries has been a profitable company for several years.
In order to maintain and strengthen our profitability, we must
continuously develop and manufacture products andservices that exceed our customers’ expectations. The ability
to handle new conditions and anticipate customers’ needs isan increasingly important competitive factor. This places highdemands on employees throughout the BT Industries Group.
As a result, one of our biggest challenges is to get the entire
organization to see more clearly the opportunities thatchange creates. BT Industries will take an active approach tochange work and ensure that change is synonymous withimprovement—in our own work and in our customer
offerings.

through interaction among BT Industries Group companies,
to identify the best methods and processes. We have every
reason to believe that by further expanding cooperationinternally and with our owner, Toyota Industries, we will all
benefit. Cooperation is important to both BT Industries andToyota Industries. Each of our organizations has different
strengths and competencies which, when utilized correctly,
create synergies. The philosophy at Toyota Industries and
BT Industries is to maintain two distribution channels (BT and
TOYOTA) and to continue to work with separate brands. This is
expected to produce the best results for BT Industries as wellas Toyota Industries as a whole. In BT Industries’ distribution
channels, we employ one main brand in each market region.
In North America, Raymond is the primary brand, and inEurope and the rest of the world it is BT.

Future Development
The market’s development in the last two years has deviatedfrom the long-term trend in the forklift truck industry. I am
convinced, however, that the historic growth rate of 6-7% a
year we have become used to in the warehouse truck
industry in recent decades will continue. What we have seen
the last couple of years is a temporary blip. I am therefore
optimistic about our long-term development potential andfeel we are well prepared for an economic rebound. In recent
years we have made significant capacity investments in our
production plants, and at the same time have created astrategic position we can be proud of. Our constant,continued efforts to find improvements in the way we work inevery area can be compared to polishing a diamond.

Cooperation Strengthens Us All
In a global group like BT Industries, the many competencies

Per Zaunders

and experiences we have gained are a product of local

President

business and cultural conditions. Utilizing this local base, in
combination with a clear group identity, allows BT Industries,

TOYOTA INDUSTRIES CORPORATIONANNUAL REPORT 2003

23

F O C U S

2BT Industries is the world leader in warehouse trucks. Its

groups are being made available. As a result, materials

operations include the development, production and distribution

handling today requires more truck lifts with lower averageof electric trucks, counterbalanced trucks, manual trucks, and aweights than before. Customers’ demand for materials

wide range of services and rental alternatives.

handling is also gaining in importance as a parameter for

In this section, we explain BT Industries’ organization, market

their profitability.
More than half of BT Industries’ sales comes fromtrend, and its products and services.

customers in consumer-oriented businesses, although mostOrganization of BT Industries Group
The BT Industries Group comprises a total of around 80

industries are represented.
Large, international customers with operations in morecompanies, of which 65 are majority-owned subsidiaries. The

than one country prefer suppliers that can offer similar

BT Industries Group is divided into three business areas, based

products, financing, service and maintenance in all thelargely on geography. Business area BT EUROPE is primarily

markets where they do business. BT Industries has the

responsible for operations in Western Europe, BT RAYMOND

resources, competence and concepts needed to enter into

for North America and BT INTERNATIONAL for the rest of thecentralized agreements with, and serve as a partner to,world. The BT Industries Group has a total of seven production

globally active customers.

plants: two in Sweden, two in the U.S., two in Canada and one
in Italy. Sales and service are handled through an extensive

Products and Services of BT Industries

network of the BT Industries Group’s own sales and service

The product range consists of a wide variety of electric-

companies as well as partly owned or independent dealers. In

powered warehouse trucks, including walkies, order pickers,

total, the BT Industries Group is active in over 70 countries.

reach trucks and very narrow aisle trucks (VNA). All aredesigned for indoor materials handling, while thecounterbalanced truck range is more suited for outdoor

BT INDUSTRIES

environments. In addition, BT Industries manufactures anumber of different manual trucks, so-called hand pallet

BT EUROPE

BT RAYMONDBT INTERNATIONAL

trucks.
An extensive range of services and fast spare parts

Note:The BT Industries Group comprises some 80 companies with global coverage.
BT Industries’ operations are organized into three business areas.

distribution are key elements in BT Industries’ overallcustomer offering. The service range also includes short- andlong-term rentals.

Market Trend
Global volume for all motorized forklift trucks is estimated at
approximately 594,000 units in 2002. The market is

BT Industries’ Worldwide Manufacturing Bases

concentrated in the industrialized world, with North America,
Western Europe and Japan accounting for an approximately
80% share.
In recent decades, the market for warehouse trucks hasgrown by an annual average of slightly over 6%. Eastern
Europe, Southeast Asia and South America, which areprojected to be the fastest growth markets, have posted
growth of over 10% in recent years. The variety of consumer
goods has been expanding greatly for some time. New
products are constantly being launched and a growing
number of versions and brands within the same product24

TOYOTA INDUSTRIES CORPORATIONANNUAL REPORT 2003

BT Industries presently operates seven manufacturing bases in Europe
and North America. Products made at these bases are sold worldwide
through BT’s own sales and service organizations and some 450
distributors and dealers.