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.

n CSR Areas
CustomerFirst
SocialContributions

Environmental
Conservation

Respect for
Employees

Contributing to Sustainable
Development in Harmony
with Society and the EarthFair andTransparent
Business
Activities

ComplianceManagementof Confidential
Information

42

Safety and
HealthTimely 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.

Toyota 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

Reporting
Cooperation

Selection/
Dismissal

Board of Directors

Reporting
ReportingAppointment/
Monitoring

Monitoring
Monitoring

Discussion/
ReportingPresident
Accounting
Audit

(

Management
Committee
Deliberates on importantmatters frommanagement’s perspective

Directives

Business Operation
Committee

Management
Council

Follows up on theexecution ofbusiness operations

Reports on andconfirms execution ofbusiness operations) (Discussion/ Directives
Reporting) (ReportingDirectives

Directives)

Reporting(monthly)

Reporting

Audit &
Supervisory Board

Independent Auditors

Directives
Reporting
Reporting

Functional
Meetings*1
Committees*2
Policies

Directors/Managing Officers*1: Functional
Meetings*2: Committees

Human Resources

CSR

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)

Toyota Industries Report 2014

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
Governance43

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 report

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.
n 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 proceduresn Compliance Ofﬁcers (outside Japan) and Compliance Committees (in Japan) (As of March 31, 2014)n Employee Code of Conduct

Compliance officer
in China

Establishment and Reinforcement of
Implementation Organizationn Internal Control Assessment System (Based on J-SOX)
Internal control activities undertaken by eachdepartment and consolidated subsidiary(Establishment and operation of internal controls)

prevention of misconduct to representatives from thebusiness partners of Toyota Industry (Kunshan) Co., Ltd.
(TIK), our largest production base in China.

n Organization for Promoting Compliance

Wang Xinxing
Toyota 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 Governancen 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 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
participatedparticipatedparticipatedOngoing 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★11,900 employees
participated(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.
n Example Topics of e-Learning Materials
Contents

Target audience2013★15,400 employees
participated2014

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.
n Compliance Hotline Leaflet

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

Risk Management

Basic Perspective

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

Implementation Structure

Conducted training on the Code of Conduct, safety, etc.

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
n 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.

46

Internal newsletter
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.
n 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

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

Aozora Ichiba

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.
n Types of Quality Sought by Toyota Industries

経営
品質

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

Quality levels that
customers truly
expect

営業
品質

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

設計
Design
品質
quality

製造
品質●Brand strength●Corporate image●Sales●Service●Logistics●Workmanship

Manufacturing capabilities“We should express our gratitude to ourcustomers by providing them our best
quality products.” (from Toyota Industries’ Quality Guidelines)
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 probablecause is identified from both technical and structural aspects,
and if deemed necessary, the new product development
system itself is reviewed to prevent recurrence.

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 othern Company-Wide, Horizontally Aligned Quality Assurance
Activities
Quality Vision

Quality Guidelines

Quality Functional Meeting
Quality Confirmation and Defect Prevention Meeting
Company-wide Council of Heads of Quality Assurance Departments

n 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

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.
July 1, 2013

Seminar held as part of age-based health educationn 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
n 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.
n 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.
n 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.
n 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 racen 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).
n Cash Dividends per Share (Annual)(¥)
90

Investor Relations Activities

80
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.
n 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.
n 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.
n 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, Tokyo

57

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. S upport 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