FY2016 2nd Quarter
Financial Results

November 2, 2015

Ⅰ．Financial Summary

1/27

Financial Summary <FY2016 2Q>
1. Net sales, operating profit, ordinary profit and profit attributable toowners of the parent marked record highs for the second quarter ofthe six months from April 1 to September 30.

2. The favorable results of the materials handling equipment segment
and car air-conditioning compressor business contributed to theconsolidated financial results.

3. Revised up the forecasts of net sales, operating profit,
ordinary profit and profit attributable to owners of the parent, as wellas the distribution of cash dividends.

2/27

Performance <FY2016 2Q>(Billion yen)

FY2015 2Q FY2016 2Q(6 months) (6 months)

Change1,046.0

1,100.2

54.2

5.2%

Operating profit

56.7

66.9

10.2

17.9%

Ordinary profit

87.0

99.6

12.6

14.4%

Profit attributable toowners of the parent

60.9

67.9

7.0

11.5%

¥194.18¥216.38¥22.20

-

¥50

¥60

¥10

-

Net sales

Earnings
per share
Dividends
per share

・Both net sales and profit increased.
・The materials handling equipment segment and the car air-conditioning
compressor business have driven the financial results.
・Revised the distribution of an interim dividends from ¥55 per share to ¥60 per share.
3/27

Segment Information <FY2016 2Q>
Net sales [Operating profit](Billion yen )FY2015 2Q FY2016 2Q(6 months) (6 months)
VehicleEngineCar air-conditioning
compressor
Electoronics parts,
foundry and othres

Automoblie
Materials handlingequipment
Logistics
Textile machinery
Others
Total

238.7

219.7

Change(19.0)(8.0%)

Unit Sales(Thousand units)
FY2015 2Q FY2016 2Q
Change(6 months) (6 months)

93.8

83.6

(10.2)(10.9%)

152.6

172.0

19.4

12.7%

RAV4

33.9
519.2
[ 18.9]433.7[ 31.8]48.0[ 2.7]
32.6[ 1.8]
12.3[ 1.4]
1,046.0[ 56.7]29.8
505.2[ 15.3]500.4[ 44.5]50.0[ 2.9]
31.1[ 1.7]
13.1[ 2.2]
1,100.2[ 66.9](4.1)(14.0)[( 3.6)]
66.7[ 12.7]2.0[ 0.2](1.5)[( 0.1)]0.8[ 0.8]
54.2[ 10.2](12.1%)(2.7%)

Vitz (Yaris)

102
63

100
47

(2)
(16)

Vehicle

165

147

(18)

DieselGasoline

170
105

137
98

(33)
(7)

Engine

275

235

(40)

14,220 14,880

660

15.4%
4.1%
(4.7%)

Car air-conditioning
compressor

7.1%

Materials handlingequipment

105

118

13

5.2%

Air-jet loom

3.1

2.4

(0.7)

・The Vehicle and Engine businesses: Net sales decreased because of decreases of the unit sales of Vitz, as well as
KD diesel engine fitted into IMV.
・The Car air-conditioning compressor business: Unit sales increases in China and Europe pushed up net sales.
・The Materials handling equipment segment: Net sales increased by increases of unit sales in Europe and North America,and Aichi Corporation contributed as well.
4/27

Changes in Operating Profit and Ordinary Profit
Year-on-year Comparison (FY2015 2Q and FY2016 2Q)
Ordinary profit: ¥12.6 billion increase
Operating profit: ¥10.2 billion increase (from ¥56.7 billion to ¥66.9 billion)

+4.8
(5.5)

+ 7.2
+11.3
87.0
Increasein sales

FY2015 2Q
6 months

Positive
impact ofexchangerate
fluctuations+23.3(Billion yen)

(5.4)

Cost
reduction

Increase indepreciation(0.8)
Increasein labor
cost

(1.4)

Increasein raw Increaseinmaterial expenses
cost(13.1)+2.4

99.6

Changesin the net
amount ofnonoperating
profit andnonoperating
expenses+2.4

FY2016 2Q
6 months・The favorable results of the materials handling equipment segment and car airconditioning compressor business contributed to the increase of consolidated profit.
・Depreciation and labor cost increased due to our aggressive sales increase activities.
5/27

Performance <FY2016 2Q>(Billion yen)

FY2015 2Q FY2016 2Q(6 months) (6 months)

ChangeCapitalExpenditures

55.5

38.6

Depreciation

32.3

37.8

5.5

17.1%

\/US$

¥103

¥122

¥19

-

\/Euro

¥139

¥135

(¥4)

-

(16.9) (30.4%)

・Aggressive capital expenditure in Automobile segment, specifically in car
air-conditioning compressor business, decreased.
・Depreciation in the materials handling equipment segment as well as Automobile
segment including car air-conditioning compressor and engine businesses
increased due to capital expenditure in the last few years.
6/27

Performance <FY2016 2Q>(Billion yen)

As of MarchFY2016 2Q
31, 2015

ChangeTotal assets

4,650.8

4,479.3(171.5)(3.7%)

Total net assets

2,425.9

2,212.8(213.1)(8.8%)

Equity ratio

50.7%

47.8%

-

-

Consolidated
subsidiaries

214

217

3

-

・Total assets and total net assets decreased as market value of Investment
securities decreased.

7/27

Performance <FY2016 Forecast>(Billion yen)

FY2015FY2016

2,166.6

2,230.0

63.4

2.9%

2,200.0

Operating profit

117.5

130.0

12.5

10.6%

125.0

Ordinary profit

170.8

187.0

16.2

9.5%

184.0

Profit attributable toowners of the parent

115.2

187.0

71.8

62.2%

126.0

¥367.06¥595.22¥228.16-¥401.06

¥110

¥120

¥10

-

¥110

Net sales

Earnings
per share
Dividends
per share

ChangePrevious plan

・Extraordinary profit is expected derived from sales of shares of subsidiaries.
Sell shares of Asahi Security Co., Ltd. and Wanbishi Archives Co., Ltd., planned in December 2015.

8/27

Segment Information <FY2016 Forecast>
Net sales[Operating profit]
FY2015 2Q(6 months)

VehicleEngineCar air-conditioning compressor
Electoronics parts, foundry and othres

Automoblie
Materials handlingequipment
Logistics
Textile machinery
Others
Total

459.0
192.0
324.6
74.9
1,050.7[ 35.9]924.9[ 68.8]98.0[ 6.2]
68.1[ 2.6]
24.7[ 3.7]
2,166.6[ 117.5](Billion yen)
FY2016 2Q(6 months)

ChangePrevious plan

475.0
160.0
343.0
65.0
1,043.0

16.0(32.0)
18.4
(9.9)
(7.7)

3.5%
(16.7%)
5.7%(13.3%)(0.7%)

455.0
178.0
348.0
70.0
1,051.0

1,008.0

83.1[( 68.8)](9.0)[( 6.2)](2.1)[( 2.6)](0.7)[( 3.7)]
63.4[( 117.5)]

9.0%

955.0

(9.2%)

104.0(3.2%)

66.0(3.1%)

24.0

2.9%

2,200.0

89.0
66.0
24.0
2,230.0

9/27

Segment Information <FY2016 Forecast>
Unit Sales(Thousand units)

FY2015FY2016

Vitz (Yaris)

205
103

207
93

2
(10)

211
84

Vehicle

308

300

(8)

295

DieselGasoline

355
213

255
195

(100)
(18)

285
215

Engine

568

450

(118)

500

Car air-conditioning
compressor

29,32030,5001,180

31,000Materials handlingequipment

222

240

18

231

Air-jet loom

5.8

5.7

(0.1)

5.7

RAV4

ChangePrevious plan

10/27

Changes in Operating Profit and Ordinary Profit
Year-on-year Comparison (FY2015 full year and FY2016 full year forecast)Ordinary profit: ¥16.2 billion increase
Operating profit: ¥12.5 billion increase (from ¥117.5 billion to ¥130.0 billion)

+5.2
+13.0
+16.0

Positive
impact ofexchangerate
Increase fluctuations

in sales

170.8
Cost
reduction(10.0)(Billion yen)

(8.3)
Increasein labor
cost Increase in Increase in
Increase
depreciation
raw materialin
cost
expenses

(1.2)

(2.2)

+3.7

187.0

Changesin the net
amount ofnonoperating
profit andnonoperating
expenses

FY2015FY2016+34.2(21.7)+3.7

・Cost reduction and sales increases of the materials handling equipment segment andcar air-conditioning compressor business will contribute to consolidated profit increase.
・Depreciation and labor cost are expected to increase due to our aggressive sales
increase activities.
11/27

Performance <FY2016 Forecast>(Billion yen)

FY2015FY2016

ChangeCapitalExpenditures

126.3

100.0

Depreciation

70.7

79.0

8.3

11.6%

79.0

\/US$

¥110

¥118

¥8

－

¥117

\/Euro

¥139

¥133

(¥6)

－

¥127

Previous plan

(26.3) (20.9%)

100.0

12/27

II. Our Business Initiatives towardMedium Term GrowthMaterials Handling Equipment
Key Components
Car air-conditioning Compressor
Solution

1. Global lift truck market
2. Our recent lift truck unit sales
3. Development activities
4. Production activities
5. Sales activities
6. Enhancement of activities focusing emerging markets

13/27

Solution Materials Handling Equipment[1. Global lift truck market](Thousand unit)

Global lift truck market*1

1,200

Steadygrowth is
expected tocontinue
after 2016

1,000
800

Other
China

600

Europe400

North
America

200

Japan

0
2011

2012

2013

2014

(*1: Estimate by TICO)

2020 (CY)(Forecast)Our market share*2

(%)
30

2015

(Forecast)[Japan]･Market size continues to be stable
due mainly to manufacturingindustries.
[North America]･Economy growth leads demand
expansion.
[Europe]･Market shows growing trend thanks
to moderate economic growth.
[China and other]･Currently market is weak, but
demand expansion is expected in
mid- long-term due to growth oflogistics volume resulting fromgrowth of population andeconomies.

Japan, North America, Europe
Other

20

Expand global share led by
growth in our mainmarkets in developed
countries

Global
10

China
0
2011

2012

(*2: Estimate by TICO,
excluding Tailift)

2013

2014

2015

(Forecast)2020 (CY)(Forecast)

Aim to further expand our
global market shareleveraging our strengths ofquality, performance and aftersales services capabilities.
14/27

Solution Materials Handling Equipment[2. Our recent lift truck sales]

Global

Japan

240
222
Second half

117

(Thousand units)

122

39

39

20

18

19

21

FY2015FY2016

North America
Aiming to achieve
further market
share increase in
the stable market
trend by appealinghigh environmental
performance.

86
73
44
37

36

FY2015

Europe68

First half

105

118

39
39

29

FY201575

36

Promotingaggressive sales
activities bystrengthening
sales structures in
the market which
showing growth.

FY2016FY2016

Others

42

40

21

21

21

19

FY2015FY2016FY2016FY201542

Proactively
implementing sales
expansion activities
includingresponding to large
customers in thegrowing market.

In the relatively weakmarket, aiming forsales expansion byappealing productquality and after sales
services whilestrengthening sales
structures.
15/27

Solution Materials Handling Equipment[3. Development Activities]

Product development centered on 3Es
Increase of product line meeting exhaust emissions regulations･Lineup of internal-combustion lift truck meeting small special motor
New GENEO diesel engine lift truck
vehicle requirement is expanded, adding models with our latest clean
meeting small special motor vehicle
diesel engine. (Japan)
requirement in Japan=>Offering comprehensive lineup meeting 2014 exhaust emissions regulations
Introducing new 3-wheel electric lift truck with better environmental performance(Japan, North America, etc.)･Achieving 20% longer operating hour with highly efficient internallydeveloped AC motor
Production started in North America from September 2015
Production to be started in Japan from December 2015

Increase of feasibility test of fuel cell lift truck･Participating feasibility test of fuel cell lift truck at Shunan-city Regional
Wholesale Market in Yamaguchi-prefecture

New 3-wheel
electric lift truck=>Verify CO2 reduction and other effects under different operating conditions
other than at factory or airport.
Past feasibility test which we participate(d)*Kitakyushu Smart Community Project (until 2014)*Hydrogen Grid Project at Kansai International Airport (ongoing)

Fuel cell lift truck

16/27

Solution Materials Handling Equipment[3. Development Activities]

Enhancement of development capability and interactions among regions
Integrate development process aiming to form globally efficient development structure･Enhance development capability at each region.
<Example>
Europe (CESAB) is now capable to develop
full line of electric CB* type lift truck.
* Counter balance
Europe developed electric CB lift truck･Specialize/cooperate product development
among regions/brands to reduce overlap.
･Mutually supply products across regions/brands.
<Example>
Supply Europe-developed BT Vector to the Raymond,
North America.
BT Vector(Very narrow aisle)[Production Activities]

Globally optimize production and supply structures
Efficiently utilize present production bases to globally optimize production structure with an aim
to meet production volume of 300 thousand-unit level.
･Based on local production for local supply idea, consider to optimize production base or models
through comprehensive valuation of production capacity, delivery and cost.
17/27

Solution Materials Handling Equipment[5. Sales Activities]

Strengthening sales finance business with an aim to expand our value chain
TICF*, a North American sales finance subsidiary has started its
business operation in October 2015
Acquisition cost: approximately US$2.3 billion, mostly financial asset
Strengthen and expand our value chain
by further incorporating sales financebusiness･New lift truck sales･Maintenance services during contract
period･Sales of second-hand lift truck aftertermination of contract=>Respond to various customers’ needs

The image of sales finance ratio of our lift truck sales
after TICF’s business commencement
Customer’s
funds and others
Sales financethrough othercompanies

TICO’s sales finance(Increase up to
about 50% from
30% of total sales
finance)*: Toyota Industries Commercial Finance, Inc.
Newly developed sales finance subsidiary by acquiring material
handling business of Toyota Motor Credit Corporation, a U.S.-based
subsidiary of Toyota Motor Corporation

Globally strengthen sales finance business including Europe and emerging countries･Plan to establish sales finance companies in Germany and Italy in 2016.
･Consider to expand sales finance businesses in major countries in Asia and South America.
18/27

Solution Materials Handling Equipment[5. Sales Activities]

Enhancing sales expansion activities to large customers
through our logistics solution leveraging our wide range of
product lineup and knowhow
North America, Europe<Customer A>
Proposals including reduction of logistics costs=> Received an order of approximately 700 units of mainly electric lift trucks for in-houseuse from a U.S. major beverage company.
<Customer B>
Appealed proposals combining our extensive sales and service structures andlogistics solution=> Concluded a global comprehensive contract* with a Swiss major logistics company.
*: A form of contract that at first headquarters agree basic specifications, price and others, then each country discuss anddecide details on specifications, price and other items.

Emerging countries<Customer C>
Appealed our comprehensive strength including logistics solution and after sales services
through proposal sales of fleet management.
=> Received an order of internal combustion lift truck exceeding 100 units from a major
beverage company in Thailand.
19/27

Solution Materials Handling Equipment[Enhancement of activities focusing emerging markets ]Response to middle- to low-price range
Acquisition of lift truck business of Tailift Co., Ltd. In Taiwan in August 2015

Further strengthen our response to emerging
markets by adding price competitive excellent
products.

Outline of lift truck business of
Tailift Co., Ltd.
Net sales: approx. JPY18 billion*
Unit sales: approx. 11,000 units*
Production bases: Taiwan, China*: FY ended December 2014

Seek to create synergy effects by using mutualadvantages.
Advantages of Tailift

Advantages of TICO

Capability to develop, manufactureand sell products which meet needsof emerging markets

Global network, advanced
technologies, manufacturing
capability

Lift truck of Tailift

20/27

II. Our Business Initiatives towardMedium Term GrowthMaterials Handling Equipment
Key Components
Car air-conditioning Compressor
Solution

1. Market trend and our activities
2. Sales expansion activities
1) Our sales expansion status2) Examples of our sales expansion to
new car makers
3. Development activities
4. Production and supply structures activities

21/27

Key Components Car air-conditioning Compressor

1. Market trend and our activities<Compressor market>

Global compressor market and our unit sales

Increase of car
air-conditioner
adoption rate

(Thousand units)
80,000Market size continues to growsteadily.

Global market

Growth of automobile market
led by U.S., China andemerging countries

TICO sales
60,000<Our activities>

40,000Further increase our unit sales
through various global activities.

20,000Quality

0

2012

2013

2014

2015

2016

Manufactureand supply
capabilities

2021
(FY)

Technologicalstrength

22/27

Key Components Car air-conditioning Compressor
Orange: New customers after FY2013[2. 1)Our sales expansion status]
Our unit sales at each region(Thousand units)
10,000(Thousand units)

EuropeFord
Nissan

9,000

10,000

Japan

9,000

Others
8,000
Honda
IVECO
7,000
Suzuki
6,000
Renault
5,000
Opel
Toyota4,000
FIAT/Chrysler
3,000
Peugeot
2,000
BMW
Benz
1,000
VW/Audi

8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
2012

2012

2016 forecast
(FY)

China

2,500
2,000

3,500
3,000

North America

Others

9,000

Hyundai
Nissan

Mazda

8,000

Others

Hino

7,000

Freightliner

Mitsubishi 6,000

Subaru

Isuzu

5,000

Honda

Subaru

4,000

Honda

3,000

Suzuki

2,000

Daihatsu

1,000

Ford
GM
ToyotaFIAT/Chrysler02016 forecast(FY)

FIAT/Chrysler
Peugeot
NissanFord(Thousand units)

Nissan 10,000

Toyota0

0(Thousand units)

2012(Thousand units)

Others2016 forecast(FY)

Mitsubishi
NissanHyundai

3,500
3,000
2,500

OthersOthers2,000

Renault

1,500

Renault

1,500

Suzuki

1,000

Benz

1,000

Ford

500

Honda

500

Honda

VW/AUDI00
20122016 forecast(FY)

ToyotaDaihatsu
20122016 forecast(FY)

Toyota23/27

Fixed-displacement type:･Fixed cooling capacity with constant full-power operation･Small, light-weight and low cost with simple mechanism

Key Components Car air-conditioning Compressor[2. 2) Examples of our sales expansion to
new car makers]

Variable-displacement type:･Highly fuel efficient by automatically controlling cooling
capacity based on temperature and engine load situation

Type of compressor and vehicle models of new customers(Thousand units)
10,000EuropeFord
Nissan(Thousand units)
10,000Japan(Thousand units)

Nissan 10,000

Others9,000
Others
Mazda
8,000
8,000
Honda
IVECO
Hino
7,000
7,000
Suzuki
Mitsubishi
6,000
6,000
Renault
Isuzu
5,000
5,000
Opel
SubaruToyota4,000
4,000
FIAT/Chrysler[Variable-displacement type]
Honda
3,000
3,000
Peugeot
Suzuki[Variable-displacement type]
2,000
2,000
BMW
Daihatsu
Benz
1,000
1,000
9,000

Nissan X-TRAIL
Ford C-MAX

0
20122016 forecast(FY)

VW/AudiNissan X-TRAIL
2012

China

Ford Fusion
2,000
OthersNissan X-TRAIL
1,500
Renault
1,000
Peugeot 308, 408 Benz
Honda
500
FIAT/Chrysler
Cherokee

VW/AUDI0

20122016 forecast(FY)

Toyota8,000

Others7,000

Freightliner

6,000

Subaru
Honda

5,000
4,000
3,000

Ford

[Variable-displacement type]
GM

Nissan Rogue
1,000 Hyundai Sonata
2,000

ToyotaFIAT/Chrysler02016 forecast(FY)

FIAT/Chrysler
3,500
Peugeot
3,000
Nissan[Variable-displacement type]
2,500
Ford
(Thousand units)

9,000

Hyundai
NissanToyota0

North America

2012

Others2016 forecast(FY)

Mitsubishi
Nissan3,000[Variable-displacementtype] Hyundai(Thousand units)
3,500
2,500

OthersHyundaiK5
2,000

Renault
Suzuki

1,500[Fixed-displacement
type]
1,000

Ford

Honda
500
Mitsubishi
PAJERO SPORT
Daihatsu

0

20122016 forecast(FY)

Toyota24/27

Key Components Car air-conditioning Compressor[3. Development activities]
Promote advanced development by optimally responding to changes insurrounding environment
Compact• Utilize aluminum casting and precision machining
technologies
Light weightMoregeneration model ・Product development with new
stringent
Evolving variable- • Next
mechanism
fueldisplacement type • Response to new refrigerant
efficiency
standard
・Response to electrification needs of car makers around theIncrease of
product appealof electric type
Speed-up of
development
Furtherdiversified
customers’
needs
Demandincrease of
car airconditioner
in emerging
countries

world
・Response to increasing needs for quieter operation leveraging
knowhow cultivated through development for luxury cars
・Increase product appeal of internally developed motors andinverters
・Product development with new mechanism

Speed-up of
development
Cost reduction• Promote localization of development andevaluation• Pursue experiment recreating environment close
to the actual-vehicle-fitted condition

Increaselineups for
emerging
markets• Accelerate development of price competitive fixeddisplacement type for local car makers as well as
variable-displacement type for global car makers

25/27

Key Components Car air-conditioning Compressor[4. Production and supply structures activities]
Further enhance production and supply structures for mid-term
Activities to dateStrengthened production capacity for variabledisplacement type outside Japan with mainlycompact assembly line.
Promoting activities aiming for further increasing
productivity and quality.
Points of compact assembly line are:Flexible response
to demandfluctuations

Outstanding
high quality

Half production capacity
in one-third floor space

Thorough removalof dustSet up a model assembly line inJapan in 2015 with improvementsfrom compact assembly lines
outside Japan.

Activities for mid-term
Increase of production capacity is necessary to respondto demand increase

Deploy enhanced compact assemblyline globally
Further increase quality and productivity and deploy it
globally as the enhanced compact assembly line.

Human resources development
worldwide
Mother plant in Japan supports human resources
development of plants outside Japan with an aim tostrengthen manufacturing functions.

Further increase
quality andproductivity
globally
26/27

-Concentration and Selection of BusinessesSell shares of Asahi Security Co., Ltd. and Wanbishi Archives Co., Ltd.

We have promoted concentration and selection of businesses focusing on materials
handling equipment and automobile related fields, both are our core businesses.
=> Aim for further growth by continuing concentration and selection of businesses.
We have decided to sell shares of both companies in consideration of
their benefit of further growth; they can anticipate greater synergy withSECOM and NIPPON EXPRESS respectively.
Asahi Security (acquired in 2005)･Cash collection and delivery and cash
proceeds management services･Security guard services for cash machines->SECOM CO., LTD. to acquire Asahi

Aim for further
growth byfocusing on
our corebusinesses

Wanbishi Archives (acquired in 2007)･Data storage, management, collection anddelivery services･Business data backup services->NIPPON EXPRESS CO., LTD. toacquire Wanbishi

Materials
Handling
Equipment•Strengthen component business in collaboration with Cascade•Enforce our response to emerging countries with Tailift•Enhance our sales finance business

Automobile
Related•Consolidation of Toyota Group’s diesel engine development andproduction to us•Development and production of turbo chargers•Development and production of components for fuel cell vehicles•Development and production of highly fuel economical compressors

27/27

Cautionary Statement with Respect
to Forward-Looking Statements
This presentation contains projections of business results as well as statements regarding
business plans, forecasts, strategies, and other forward-looking statements that are not tobe taken as historical fact. Projections and forward-looking statements are based on thecurrent expectations and estimates of Toyota Industries and its Group companies. All suchprojections and forward-looking statements are based on management’s assumptions andbeliefs derived from the information available to it at the time of producing this report andare not guarantees of future performance. You should also be aware that certain risks anduncertainties could cause the actual results of Toyota Industries and its Group companies
to differ materially from any projections or forward-looking statements appearing in thisreport. These risks and uncertainties include, but are not limited to, the following: 1)
economic trends, 2) various competitive pressures,3) changes in relevant laws and regulations, and 4) fluctuations in exchange rates.