Annual Financial Report2022

For the Year Ended March 31, 2022

Financial Summary

P1Management's Discussion and Analysis ofFinancial Condition and Results of Operations

P2

Consolidated Statement of Financial Position

P11

Consolidated Statement of Profit or Loss

P13

Consolidated Statement of Comprehensive Income

P14

Consolidated Statement of Changes in Equity

P15

Consolidated Statement of Cash Flows

P17

Notes to Consolidated Financial Statements

P18

Report of Independent AuditorsEnd

TOYOTA INDUSTRIES CORPORATION

Financial Summary
Toyota Industries Corporation and its consolidated subsidiaries< IFRS >FY2018FY2019FY2020

FY2021

FY20222,003,973

2,214,946

2,171,355

2,118,302

2,705,183

Operating profit (Millions of yen)

147,445

134,684

128,233

118,159

159,066

Profit (Millions of yen)

173,816

159,778

150,187

141,435

185,350

Profit: attributable to owners of the parent(Millions of yen)

168,180

152,748

145,881

136,700

180,306

Comprehensive income (Millions of yen)

361,599(16,789)

10,474854,098

751,823

Share of equity attributable to ownersof the parent (Millions of yen)

2,553,391

2,479,718

2,438,807

3,236,038

3,928,513

Total assets (Millions of yen)

5,258,500

5,261,174

5,279,653

6,503,986

7,627,120

Equity per share: attributable to ownersof the parent (Yen)

8,223.82

7,986.59

7,854.87

10,422.64

12,653.04

Earnings per share－basic (Yen)

541.67491.97469.85440.28580.73

Earnings per share－diluted (Yen)

541.67491.97469.85440.28580.73

48.56

47.13

46.19

49.75

51.51

7.02

6.07

5.93

4.82

5.03

11.89

11.28

11.02

22.39

14.58

268,567

270,306

313,199382,386

321,085(340,324)(395,000)(182,598)(404,164)(229,805)

153,30340,467(7,094)(105,477)(92,114)323,830

239,140

358,144

238,248

247,085

61,152[11,705]

64,641[12,625]

66,478[12,788]

66,947[11,396]

71,784[12,923]

Net sales (Millions of yen)

Ratio of equity attributable to ownersof the parent to total assets (%)
Return on equity attributable to ownersof the parent (%)
Price-to-earnings ratio (Times)
Net cash provided by operating activities(Millions of yen)
Net cash used in investing activities(Millions of yen)
Net cash provided by (used in) financing
activities (Millions of yen)
Cash and cash equivalents at end of period(Millions of yen)
Number of employees[Average number of part-time employees,
not included in number of employees above](Notes) 1. Toyota Industries Corporation and its subsidiaries have adopted International Financial ReportingStandards ("IFRS") for the consolidated financial statements of the annual report.
2. Diluted earnings per share is the same amount with basic earnings per share because there are no dilutive
shares.
3. Number of employees is the number of workers (excluding people dispatched from the Group to outside theGroup, but including people dispatched from outside the Group to the Group).

―1―Management's Discussion and Analysis of Financial Condition and Results of Operations
The following Management's Discussion and Analysis of Financial Condition and Results of Operations is based on
information known to management as of June 2022.
This section contains projections and forward-looking statements that involve risks, uncertainties and assumptions. You
should be aware that certain risks and uncertainties could cause the actual results of Toyota Industries Corporation and its
consolidated subsidiaries to differ materially from any projections or forward-looking statements. These risks anduncertainties include, but are not limited to, those listed under "Risk Information" and elsewhere in this annual report.
The fiscal year ended March 31, 2022 is referred to as FY2022 and other fiscal years are referred to in a corresponding
manner. All references to the "Company" herein are to Toyota Industries Corporation on a stand-alone basis andreferences to "Toyota Industries" herein are to the Company and its 258 consolidated subsidiaries.
1. Result of Operations(1) Operating performance
In FY2022 (ended March 31, 2022), economic activities resumed thanks to the progress on COVID 19 vaccinations
worldwide, which in turn prompted the global economy to recover, while the spread of COVID 19 infections shows nosigns of subsiding. The momentum of the recovery is waning, however, due to semiconductor shortages, shipping
delays caused by container shortages and the adverse effects of the Russian invasion of Ukraine that began near theend of FY2022. Meanwhile, the Japanese economy was also on a recovery trend, albeit belatedly, but its pace islikewise slowing down. In this operating environment, Toyota Industries undertook efforts to ensure customer trust
through by placeing priorities on quality and to expand sales by responding flexibly to market trends.
As a result, total consolidated net sales amounted to 2,705.1 billion yen, an increase of 586.8 billion yen, or 28%, fromthe previous fiscal year.
(2) Operating performance highlights by business segment
Operating results by business segment are as follows.
Net sales for each segment do not include inter-segment transactions.
(Automobile)
The Automobile market recovered moderately overall, with an increase in Asia. Amid such operating conditions, net
sales of the Automobile Segment totaled 792.8 billion yen, an increase of 201.2 billion yen, or 34%. Operating profit
amounted to 33.0 billion yen, an increase of 28.3 billion yen, or 590%.
Within this segment, net sales of the Vehicle Business amounted to 83.4 billion yen, a decrease of 4.9 billion yen, or
6%, due to decreases in sales of RAV4 both for Japan and abroad.
Net sales of the Engine Business totaled 267.6 billion yen, an increase of 127.7 billion yen, or 91%, resulting mainly
from an increase in sales of GD diesel engines.
Net sales of the Car Air-Conditioning Compressor Business totaled 356.1 billion yen, an increase of 54.5 billion yen, or
18%, due mainly to an increase in sales in North America.
Net sales of Electronics Parts and Others Business totaled 85.5 billion yen, an increase of 23.9 billion yen, or 39%,
attributable primarily to an increase in sales of DC-AC inverters.

―2―

(Materials Handling Equipment)
The Materials Handling Equipment market was strong overall, with the expansion in North America and Europe. Amid
this operating climate, net sales of the Materials Handling Equipment Segment totaled 1,789.4 billion yen, an increaseof 358.0 billion yen, or 25%. Sales of lift trucks, a mainstay product of this segment, increased primarily in Europe.
Operating profit amounted to 113.6 billion yen, an increase of 3.7 billion yen, or 3%, from the previous fiscal year.
(Textile Machinery)
The textile machinery market remained steady in Asia, including the mainstay China. Net sales of the Textile Machinery
Segment totaled 69.2 billion yen, an increase of 28.4 billion yen, or 69%, due mainly to an increase in sales of weaving
machinery and yarn quality measurement instruments. Operating profit amounted to 5.5 billion yen (operating loss of
1.1 billion yen in the previous fiscal year).
(3) Operating profit
Operating profit for FY2022 was 159.0 billion yen, an increase of 40.9 billion yen, or 35%, from the previous fiscal year.
This was mainly owing to an increase in sales, despite increases in raw material prices and labor costs.
(4) Profit before income taxes
Profit before income taxes amounted to 246.1 billion yen, an increase of 62.1 billion yen, or 34%, from the previous
fiscal year.
(5) Profit attributable to owners of the parent
Profit attributable to owners of the parent totaled 180.3 billion yen, an increase of 43.6 billion yen, or 32%, from theprevious fiscal year.
Earnings per share－basic was 580.73 yen compared with 440.28 yen in the previous fiscal year.
2. Consolidated Financial Condition
Assets amounted to 7,627.1 billion yen, an increase of 1,123.2 billion yen from the end of the previous fiscal year, due
mainly to an increase in fair value of investment securities. Liabilities amounted to 3,605.1 billion yen, an increase of
423.7 billion yen from the end of the previous fiscal year. This was primarily because of an increase in deferred tax
liabilities. Equity amounted to 4,021.9 billion yen, an increase of 699.4 billion yen from the end of the previous fiscal year.

―3―3. Liquidity and Capital Resources(1) Capital needs and returning profits to shareholders
Toyota Industries' primary capital needs are twofold, specifically, long-term capital needs for research and development,
capital investment, M&A and others as well as working capital needs for purchasing raw materials and parts for
manufacturing the Toyota Industries' products and for manufacturing costs and selling, general and administrative
expenses.
In addition to prioritizing fund allocation in research and development and capital investment, it is Toyota Industries'
policy to invest funds in M&A and others when deemed necessary for business expansion and sustainable growth.
As for returning profits to shareholders, it is determined to pay dividends at the consolidated dividend payout ratio ofaround 30%. In regard to dividend policy, refer to "7. Dividend Policy".
(2) Financial policy
Toyota Industries' financial policy is to ensure sufficient financing for its business activities and to maintain sufficientliquidity and strong consolidated financial position. Toyota Industries continues to maintain its solid financial condition.
Through the use of such current assets as cash and cash equivalents and short-term investments, as well as cash
flows from operating activities, issuance of corporate bonds and loans from financial institutions, Toyota Industries
believes that it will be able to provide sufficient funds for the working capital necessary to expand existing businesses
and develop new projects.
Toyota Industries receives credit ratings from S&P Global Ratings Japan Inc., Moody's Japan K.K. and Rating &Investment Information, Inc. and strives to maintain and improve its ratings to procure funds at favorable terms.
Regarding fund management, the Company undertakes integrated fund management of its subsidiaries in Japan, while
Toyota Industries North America, Inc. (TINA) and Toyota Industries Finance International AB (TIFI) centrally manage
the funds of subsidiaries in North America and Europe, respectively. Through close cooperation among the Company,
TINA and TIFI, we strive to improve efficiency of funds operations.
4. Cash FlowsNet cash provided by operating activities was 321.0 billion yen in FY2022, due to posting profit before income taxes of
246.1 billion yen. Net cash provided by operating activities decreased by 61.3 billion yen compared to that of 382.3 billion
yen in the previous fiscal year.
Net cash used in investing activities was 229.8 billion yen in FY2022, attributable primarily to payments for purchases ofproperty, plant and equipment of 237.3 billion yen. Net cash used in investing activities increased by 174.3 billion yen
compared to that of 404.1 billion yen in the previous fiscal year.
Net cash used in financing activities was 92.1 billion yen in FY2022, due mainly to repayments of corporate bonds of 184.0
billion yen. Net cash used in financing activities increased by 13.3 billion yen compared to that of 105.4 billion yen in theprevious fiscal year.
After adding translation adjustments and cash and cash equivalents at beginning of period, cash and cash equivalents asof March 31, 2022 stood at 247.0 billion yen, an increase of 8.8 billion yen, or 4%, from the end of the previous fiscal year.

―4―5. Investment in Property, Plant and Equipment
During FY2022, Toyota Industries made a total investment of 279,608 million yen in property, plant and equipment(including materials handling equipment for operating lease) in order to launch new products, streamline and upgrade
production equipment.
The breakdown in the operating segments is as follows.
In the Automobile Segment, investments in property, plant, and equipment was 99,223 million yen. This is primarily
attributable to the Company for 78,454 million yen and Toyota Industries Engine India Pvt Ltd. for 6,250 million yen. In the
Materials Handling Equipment Segment, investments in property, plant, and equipment was 175,276 million yen. This is
primarily attributable to the Company for 5,249 million yen, Toyota Material Handling Europe AB Group for 57,950 million
yen, Raymond Group for 32,587 million yen, Toyota Industries Commercial Finance, Inc. for 22,956 million yen,
Vanderlande Group for 13,821 million yen and Toyota Material Handling Australia Pty Limited for 10,717 million yen. In the
Textile Machinery Segment, investment in property, plant, and equipment was 790 million yen. In the Others Segment,
investment in property, plant, and equipment was 4,317 million yen.
The fund is allocated from the Company's own resources, loans and corporate bonds.
6. Strategies and Outlook
There are many uncertainties on the outlook of the global economy. The spread of COVID-19 infections shows no signs ofsubsiding. There are also long-term concerns on effects caused by semiconductor shortages that have continued since
FY2022, shipping delays due to container shortages, soaring commodity prices, and supply constraints arising fromheightened geopolitical tensions. In addition, in the political, economic and technological areas, changes are occurring at
an increasing pace such as accelerated global efforts to realize a carbon neutral society and advances in digitalization. In
the markets for Automobile and Materials Handling Equipment, which constitute core businesses of Toyota Industries,
competition among companies is intensifying, triggered by advancements in the fields of electrification and autonomous
driving, new entries that leverage digital technologies and the transformation of the industrial structure.
Under these circumstances, Toyota Industries has made investments and promoted initiatives in growth fields while
continuing manufacturing by swiftly responding to changes in the surrounding environment and risks. Looking ahead, we
intend to focus on the following three actions in order to further strengthen the management platform and enhance
corporate value.
1) Thoroughly adhere to the basics
Adhere to such basics as safety, health, quality and compliance, which constitute the foundation of any company, andcontinue to promote manufacturing while improving quality and productivity with safety as our top priority. In addition, we
will pursue efforts toward realizing a carbon neutral society and a circular society.
2) Strengthen management platform
We will strengthen our efforts against various risks and build a flexible and robust organization so that we can make anagile response in emergency situations. At the same time, we will develop employees who learn, think and act quickly on
their own while promoting the creation of organizations and workplaces where diverse human resources can demonstrate
their capabilities to the fullest.
3) Lay the groundwork for further growthViewing changes in the markets and industries as opportunities for growth of the Company, we will develop innovativetechnologies and products through the proactive use of digital technologies and open innovation and effort to provide
services demanded by our customers.
Through these initiatives, we aim for sustainable growth of each business and strive to support industries and social
foundations around the world and contribute to making the earth a better place to live, enriched lifestyles and acomfortable society as described in Toyota Industries' Vision 2030.

―5―7. Dividend Policy
Toyota Industries intends to meet the expectations of shareholders for continuous dividends while giving full consideration
to business performance, funding requirements, the dividend payout ratio and other factors.
Toyota Industries' Board of Directors meeting, held on April 28, 2022, approved a year-end cash dividend of 90.0 yen per
share. Including the interim cash dividend of 80.0 yen per share, cash dividends for the year totaled 170.0 yen per share.
Toyota Industries will use retained earnings to improve the competitiveness of its products, augment production capacity inand outside Japan, as well as to expand into new fields of business and strengthen its corporate constitution in securing
future profits for its shareholders.
The Company's Articles of Incorporation stipulate that it may pay interim cash dividends as prescribed in Article 454-5 of
the Companies Act and it is the Company's basic policy to pay dividends from retained earnings twice a year (interim andyear-end).
The Company's Articles of Incorporation also stipulate that what is prescribed in Article 459-1 of the Companies Act can be
added to the Articles of Incorporation.

―6―8. Risk Information
The following represent risks that could have a material impact on Toyota Industries' financial condition, business results
and share prices. Toyota Industries judged the following as future risks as of March 31, 2022.
(1) Principal customers
Toyota Industries' automobile and engine products are sold primarily to Toyota Motor Corporation ("TMC"). In FY2022,
net sales to TMC accounted for 12.6% of consolidated net sales. Therefore, TMC's vehicle sales could have an impact
on Toyota Industries' business results. As of March 31, 2022, TMC holds 24.7% of the Company's voting rights.
(2) Product development capabilities
Based on the concept of "developing appealing new products", Toyota Industries proactively develops new products by
utilizing its leading-edge technologies, as it strives to anticipate increasingly sophisticated and diversifying needs of themarket and ensure the satisfaction of its customers.
R&D activities are focused mainly on developing and upgrading products in current business fields and peripheral
sectors. Toyota Industries expects that revenues derived from these fields will continue to account for a significant
portion of total revenues and anticipates that future growth will be contingent on the development and sales of new
products in these fields. Toyota Industries believes that it can continue to develop appealing new products. However,Toyota Industries may not be able to forecast market needs and develop and introduce appealing new products in atimely manner. This could result in lower future growth and have an adverse impact on Toyota Industries' financial
condition and business results.
Such a situation could result from risks that include that there is no assurance that Toyota Industries will be able toallocate sufficient future funds necessary for the development of appealing new products; no assurance that productsales will be successful, as forecasts of products supported by the market may not always be accurate; and noassurance that newly developed products and technologies will always be protected as intellectual property.
(3) Intellectual property rights
In undertaking its business activities, Toyota Industries has acquired numerous intellectual property rights, including
those acquired outside Japan, such as patents related to its products, product designs and manufacturing methods.
However, not all patents submitted will necessarily be registered as rights, and these patents could thus be rejected bypatent authorities or invalidated by third parties. Also, a third party could circumvent a patent of Toyota Industries andintroduce a competing product into the market. Moreover, Toyota Industries' products utilize a wide range oftechnologies. Therefore, Toyota Industries could become a party subject to litigation involving the intellectual property
rights of a third party.
(4) Product defects
Guided by the basic philosophy of "offering products and services that are clean, safe and of high quality", Toyota
Industries makes its utmost efforts to enhance quality.
However, Toyota Industries cannot guarantee all its products will be defect-free and that product recalls will not bemade in the future. Product defects that could lead to large-scale recalls and product liability indemnities could result inlarge cost burdens and have a significant negative impact on the evaluation of Toyota Industries. It could also have an
adverse effect on Toyota Industries' financial condition and business results due to a decrease in sales and profit, anddecline in share prices of Toyota Industries.

―7―(5) Price competition
Toyota Industries faces extremely harsh competition in each of the industries in which it conducts business, including
its Automobile and Materials Handling Equipment businesses, which are the core of Toyota Industries' earnings
foundation. Toyota Industries believes it offers high value-added products that are unrivalled in terms of technology,
quality and cost.
Amid an environment characterized by intensifying price competition, however, Toyota Industries may be unable tomaintain or increase market share against low-cost competitors or to maintain profitability. This could have an adverse
impact on Toyota Industries' financial condition and business results.
(6) Reliance on suppliers of raw materials and components
Toyota Industries' products rely on various raw materials and components from suppliers outside Toyota Industries.
Toyota Industries has concluded basic business contracts with these external suppliers and assumes it can carry out
stable transactions for raw materials and components. However, Toyota Industries has no assurances against future
shortages of raw materials and components, which arise from a global shortage due to tight supply or an unforeseen
accident involving a supplier. Such shortages could have a negative effect on Toyota Industries' production and cause
an increase in costs, which could have an adverse impact on Toyota Industries' financial condition and business results.
(7) Environmental regulations
In view of its social responsibilities as a company, Toyota Industries strives to reduce any burden on the environment
resulting from its production processes, as well as strictly adheres to applicable environmental laws and regulations.
However, various environmental regulations could also be revised and strengthened in the future. Accordingly, any
expenses necessary for continuous strict adherence to these environmental regulations could result in increased
business costs and have an adverse impact on Toyota Industries' financial condition and business results.
(8) Alliances with other companies
Aiming to expand its businesses, Toyota Industries engages in joint activities with other companies through alliancesand joint ventures. However, a wildly fluctuating market trend or a policy disagreement between Toyota Industries andits partners, owing to business, financial or other reasons, could prevent Toyota Industries from deriving the intended
benefits of its alliances.
(9) Exchange rate fluctuations
Toyota Industries' businesses encompass the production and sales of products and the provision of services worldwide.
Generally, the strengthening of the yen against other currencies (especially against the U.S. dollar and the euro, which
account for a significant portion of Toyota Industries' sales) has an adverse impact on Toyota Industries' business, whilea weakening of the yen has a favorable impact. As such, in the businesses in which the Toyota Industries manufactures
products in Japan and exports them, the strengthening of the yen could reduce Toyota Industries' relative pricecompetitiveness on a global basis and have an adverse impact on Toyota Industries' financial condition and businessresults. To reduce such possibilities to a minimum, Toyota Industries uses, in principle, derivative transactions such as
forward exchange contracts to hedge risks of exchange rate fluctuations.
(10) Share price fluctuations
Toyota Industries holds marketable securities, and therefore bears the risk of price fluctuations of these shares. Basedon fair market value of these shares at the end of the fiscal year under review, Toyota Industries had unrealized gains.
However, unrealized gains on marketable securities could worsen depending on future share price movements.
Additionally, a fall in share prices could reduce the value of pension assets, leading to an increase in the pension
shortfall.

―8―

(11) Effects of disasters, power blackouts and other incidents
Toyota Industries carries out regular checks and inspections of its production facilities to minimize the effect of
production breakdown. However, there is no assurance Toyota Industries can completely prevent or lessen the impact
of man-made or natural disasters and power blackouts occurring at Toyota Industries' and its suppliers' production
facilities. Specifically, the majority of Toyota Industries' domestic production facilities and most of its business partners
are situated in the Chubu region. Therefore, major disasters in this region could delay or stop production or shipment
activities. Such prolonged delays and stoppages could have an adverse impact on Toyota Industries' financial condition
and business results. To reduce such possibilities to a minimum, Toyota Industries works with business suppliers for
optimizing the supply chain such as obtaining alternative means of supplies of raw materials and parts by regionallydispersing channels.
(12) Latent risks associated with international activities
Toyota Industries manufactures and sells products and provides services in various countries. Such unforeseen factors
as social chaos, including political disruptions, terrorism, wars and disease, as well as changes in economic conditions,
could have an adverse impact on Toyota Industries' financial condition and business results.
(13) Post-employment benefits
Toyota Industries' defined benefit plan expenses and liabilities are calculated based on actuarial assumptions thatincorporate discount rates and other factors. Therefore, differences between actual results and assumptions, such as a
reduction in discount rates or a decrease in plan assets, as well as changes in the assumptions could have asignificant impact on recognized expenses and calculated liabilities in future accounting periods.
9. Significant Contract Agreements
There are no material significant contract agreements that need to be disclosed as of the end of fiscal year ended March
31, 2022.

―9―

10. Toyota Industries' Relationship to Toyota Motor Corporation
Due to historical reasons, Toyota Industries maintains close relationships with TMC and Toyota Group companies in termsof capital and business dealings.
(1) Historical backgroundIn 1933, Kiichiro Toyoda, the eldest son of founder Sakichi Toyoda and then Managing Director of Toyoda Automatic
Loom Works, Ltd. (the present Toyota Industries), established the Automobile Department within the Company basedon his resolve to manufacture Japanese-made automobiles. In 1937, the Automobile Department was spun off andbecame an independent company, Toyota Motor Co., Ltd. (the present TMC).
(2) Capital relationshipIn light of this historical background, Toyota Industries and TMC have maintained a close capital relationship. As of
March 31, 2022, Toyota Industries holds 8.65% (1,192,330 thousand shares) of TMC's total shares in issue. Likewise,
as of the same date, TMC holds 24.7% of Toyota Industries' total voting rights. Toyota Industries is a TMC affiliate
accounted for by the equity method.
(3) Business relationshipToyota Industries assembles certain cars and produces automobile engines under consignment from TMC. Additionally,
Toyota Industries sells a portion of its other components and products directly or indirectly to other Toyota Group
companies. In FY2022, our net sales to TMC on a stand-alone basis accounted for 12.6% of our consolidated net sales.
(4) Contributions to the Toyota GroupAs a member of the Toyota Group, Toyota Industries aims to contribute to strengthening the competitiveness of TMC
and other Toyota Group companies in such areas as quality, cost, delivery and technologies. Toyota Industries isconfident that raising the Toyota Group's competitiveness will lead to increases in sales to and profits from the Toyota
Group, thereby contributing to raising Toyota Industries' corporate value.

― 10 ―

[Consolidated Financial Statements and Other]I. [Consolidated Financial Statements][Consolidated Statement of Financial Position](Millions of yen)
Notes

FY2021(As of March 31, 2021)

FY2022(As of March 31, 2022)

238,248

247,085

353,864

328,674

AssetsCurrent assets
Cash and cash equivalents

5Time deposits with deposit terms of over three months
Trade receivables and other receivables

6

962,270

1,121,491

Other financial assets

7

5,947

12,672Inventories

8292,461

433,961

Income tax receivables

22,63028,906

Other current assets

72,65883,034

1,948,081

2,255,827

Total current assets
Non-current assets
Property, plant and equipment

9,30

1,043,405

1,134,074

Goodwill and intangible assets

10,30

363,449

395,882

Trade receivables and other receivables

6

3,519

2,334

Investments accounted for by the equity method

11

16,812

21,337

Other financial assets

7

3,051,702

3,734,978Net defined benefit assets

17

33,99737,408Deferred tax assets

25

37,61539,908

5,401

5,368

4,555,904

5,371,292

6,503,986

7,627,120

Other non-current assets
Total non-current assets
Total assets
The accompanying notes are an integral part of these financial statements.

― 11 ―

(Millions of yen)
Notes

FY2021(As of March 31, 2021)

FY2022(As of March 31, 2022)

Liabilities and Equity
Liabilities
Current liabilities
Trade payables and other payables

12

613,579

745,553

Corporate bonds and loans

13435,238

468,504

Other financial liabilities

14

78,67382,90922,78627,281

13,343

15,415

24,61733,058

1,188,239

1,372,721

Accrued income taxes
Provisions

16

Other current liabilities
Total current liabilities
Non-current liabilities
Corporate bonds and loans

13

910,124

922,011

Other financial liabilities

14

88,364

95,237

Net defined benefit liabilities

17

104,900

91,677

Provisions

16

10,225

11,809Deferred tax liabilities

25

854,644

1,078,641

24,93733,054

1,993,196

2,232,430

3,181,436

3,605,152

Other non-current liabilities
Total non-current liabilities
Total liabilities
EquityShare of equity attributable to owners of the parent
Capital stock18

80,46280,462

Capital surplus

18102,307102,388

Retained earnings

18

1,369,775

1,514,657

Treasury stock18(59,321)(59,339)

Other components of equity

18

1,742,814

2,290,343

3,236,038

3,928,513

86,511

93,454

Total equity

3,322,550

4,021,967

Total liabilities and equity

6,503,986

7,627,120

Total share of equity attributable to owners of
the parent
Non-controlling interests― 12 ―

[Consolidated Statement of Profit or Loss](Millions of yen)
Notes
Net sales

FY2021(April 1, 2020
- March 31, 2021)

FY2022(April 1, 2021
- March 31, 2022)

20

2,118,302

2,705,183

21, 22(1,627,894)(2,097,501)

490,407607,682

21, 22(374,648)(455,165)

Other income

23

18,956

20,942Other expenses

23(16,555)(14,391)

118,159

159,066

Cost of sales
Gross profit
Selling, general and administrative expenses

Operating profit
Financial income

24

73,99989,941

Financial expenses

24(9,830)(7,282)

Share of profit (loss) of investments accounted forby the equity method

11

1,682

4,397

184,011

246,123(42,576)(60,773)

141,435

185,350

136,700

180,306

4,735

5,043

Earnings per share－basic (yen)440.28580.73

Earnings per share－diluted (yen)440.28580.73

Profit before income taxes
Income taxes

25

ProfitProfit attributable to:
Owners of the parent
Non-controlling interests

Earnings per share

26

The accompanying notes are an integral part of these financial statements.

― 13 ―

[Consolidated Statement of Comprehensive Income](Millions of yen)
Notes

FY2021(April 1, 2020
- March 31, 2021)

ProfitFY2022(April 1, 2021
- March 31, 2022)

141,435

185,350

Other comprehensive income:Items not to be reclassified into profit or loss
Net changes in revaluation of FVTOCI
financial assets

27, 29642,254465,900

Remeasurements of defined benefit plans

17, 27

12,438

13,943

Other comprehensive income of affiliates
accounted for by the equity method

11, 2727

19654,719479,86327

57,21084,380Cash flow hedges

27, 29154

1,126

Other comprehensive income of affiliates
accounted for by the equity method

11, 27578

1,102

57,94386,610Total other comprehensive income

712,662

566,473

Comprehensive income

854,098

751,823

845,026

742,088

9,072

9,735

Total items not to be reclassified into profit or loss
Items that can be reclassified into profit or loss
Translation adjustments of foreign operations

Total items that can be reclassified into profit or loss

Total comprehensive income attributable to:
Owners of the parent
Non-controlling interests
The accompanying notes are an integral part of these financial statements.

― 14 ―

[Consolidated Statement of Changes in Equity](Millions of yen)
Share of equity attributable to owners of the parent
Other components of equity
Notes

Net changes inrevaluation of
FVTOCIfinancial assets

CapitalsurplusRetainedearnings

80,462

103,515

1,267,521(59,307)

1,138,219－

Profit－－136,700－－－

Other comprehensive income

－

－

－

－

641,463

12,128－－

136,700－

641,463

12,128

Balance as of April 1, 2020

Total comprehensive income

Capitalstock

TreasurystockRemeasurementsof defined benefit
plans

Repurchase of treasury stock

18

－

－

－

(14)

－

－

Disposal of treasury stock

18

－

0

－

0

－

－

Dividends

19

－

－

(46,572)－－－

Changes in ownership interest of
subsidiaries
Changes in non-controlling interests
as a result of change in scope of
consolidation－(1,208)

－

－

－

－

－

－

－

－

－

－

Reclassified into retained earnings－－

12,126－2(12,128)

Other increases (decreases)

－

－

－

－

－

－

Total transactions with owners－(1,208)(34,445)(14)

2(12,128)

Balance as of March 31, 2021

80,462

102,307

1,369,775(59,321)

1,779,685－

Profit－－180,306－－－

Other comprehensive income

－

－

－

－

466,017

13,896－－

180,306－

466,017

13,896

Total comprehensive income
Repurchase of treasury stock

18

－

－

－

(18)

－

－

Disposal of treasury stock

18

－

0

－

0

－

－

Dividends

19

－

－

(49,676)－－－

Changes in ownership interest of
subsidiaries
Changes in non-controlling interests
as a result of change in scope of
consolidation

－

81

－

－

－

－

－

－

－

－

－

－

Reclassified into retained earnings－－

14,252－(355)(13,896)

Other increases (decreases)

－

－

－

－

－

－

Total transactions with owners－

81(35,424)

(18)

(355)

(13,896)

Balance as of March 31, 2022

80,462

102,388

1,514,657(59,339)

2,245,347－

The accompanying notes are an integral part of these financial statements.

― 15 ―

(Millions of yen)
Share of equity attributable to owners of the parent
Other components of equity
Notes

Balance as of April 1, 2020
ProfitOther comprehensive income
Total comprehensive income

Translation
adjustmentsof foreign
operations

Cash flow
hedges

Total

Total

Non-controllinginterests

Total equity(93,662)

2,057

1,046,614

2,438,807

81,7302,520,537－－－

136,700

4,735

141,435

54,579154

708,326

708,326

4,336

712,662

54,579154

708,326

845,026

9,072

854,098

Repurchase of treasury stock

18

－

－

－

(14)

－

(14)

Disposal of treasury stock

18

－

－

－

0

－

0

Dividends

19

－

－

－

(46,572)(1,627)(48,200)

Changes in ownership interest of
subsidiaries
Changes in non-controlling interests
as a result of change in scope of
consolidation

－

－

－

(1,208)(2,662)(3,871)

－

－

－

－

－

－

Reclassified into retained earnings－－(12,126)－－－

Other increases (decreases)

－

－

－

－

－

－

Total transactions with owners－－(12,126)(47,794)(4,290)(52,085)

Balance as of March 31, 2021

(39,082)2,211

1,742,814

3,236,038

86,511

3,322,550－－－

180,306

5,043

185,350

80,7401,126

561,781561,781

4,692

566,473

80,7401,126

561,781742,088

9,735

751,823

ProfitOther comprehensive income
Total comprehensive income
Repurchase of treasury stock

18

－

－

－

(18)

－

(18)

Disposal of treasury stock

18

－

－

－

0

－

0

Dividends

19

－

－

－

(49,676)(2,260)(51,937)

Changes in ownership interest of
subsidiaries
Changes in non-controlling interests
as a result of change in scope of
consolidation

－

－

－

81

(1,066)

(984)

－

－

－

－

534

534

Reclassified into retained earnings－－(14,252)－－－

Other increases (decreases)

－

－

－

－

－

－

Total transactions with owners－－(14,252)(49,613)(2,792)(52,405)

Balance as of March 31, 2022

41,6573,338

2,290,343

3,928,513

93,4544,021,967― 16 ―

[Consolidated Statement of Cash Flows](Millions of yen)
Notes
Cash flows from operating activities:
Profit before income taxes
Depreciation and amortization
Impairment losses
Interest and dividends income
Interest expenses
Share of (profit) loss of investments accounted
for by the equity method(Increase) decrease in inventories(Increase) decrease in trade receivables andother receivables
Increase (decrease) in trade payables and other payables
OthersSubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities:
Payments for purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Payments for purchases of investment securities
Proceeds from sales of investment securities
Payments for acquisition of subsidiaries' stock
resulting in change in scope of consolidation
Payments for bank deposits
Proceeds from withdrawals of bank deposits
Payments for transfer of businesses
OthersNet cash used in investing activities
Cash flows from financing activities:
Net increase (decrease) in short-term loans
payable (within three months)
Proceeds from short-term loans payable(over three months)
Repayments of short-term loans payable(over three months)
Net increase (decrease) in commercial paper
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of corporate bonds
Repayments of corporate bonds
Repayments of lease obligations
Payments for repurchase of treasury stock
Cash dividends paid
Cash dividends paid to non-controlling interests
OthersNet cash used in financing activities
Translation adjustments of cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

FY2022(April 1, 2021
- March 31, 2022)

184,011
209,839
3,008(72,429)5,430

246,123
223,7372,368(84,203)
4,868(1,682)(4,397)(20,673)(110,613)(40,035)(81,246)

73,86826,205367,543
72,881(5,433)(52,605)
382,386

93,537
12,496
302,671
84,921(4,999)(61,507)
321,085(222,360)
16,200(4,455)
3(237,371)
16,415(1,406)651(714)(14,905)(929,999)
752,408(901)(14,344)(404,164)(935,461)
961,239(529)(18,438)(229,805)

31(13,507)

26,62231

64,349136,07931(65,989)(112,363)

31
31
31
31
31
31

(62,355)
182,295(99,189)
47,038(84,589)(23,251)(14)(46,572)(1,627)(2,062)(105,477)
7,359(119,896)
358,144
238,248

40,590233,551(180,482)
13,205(184,066)(16,453)(18)(49,676)(2,260)3,156(92,114)
9,671
8,837
238,248
247,085

19

5

The accompanying notes are an integral part of these financial statements.

― 17 ―FY2021(April 1, 2020
- March 31, 2021)

Notes to Consolidated Financial Statements
1. Reporting Entity
Toyota Industries Corporation (hereinafter, "the Company") is a company domiciled in Japan. The accompanying
consolidated financial statements comprise Toyota Industries and the Company's interests in affiliates. The businessesof the Toyota Industries include the manufacture and sales of automobiles, materials handling equipment, textile
machinery and others. The content of each business is detailed in "4. Segment Information".
2. Basis of Presentation(1) Conformance of consolidated financial statements with IFRSAs the Company meets the requirements of "Specified Company Applying Designated International Financial ReportingStandards" pursuant to Article 1-2 of the Ordinance on Consolidated Financial Statements, the consolidated financial
statements of the Company have been prepared in accordance with International Financial Reporting Standards (IFRS)
as permitted by the provision of Article 93 of the Ordinance.
The consolidated financial statements have been approved by Akira Onishi, president of the Company, on August 10,
2022.
(2) Basis of measurement
As detailed in "3. Significant Accounting Policies", Toyota Industries' consolidated financial statements have been
prepared on a historical cost basis, except for specific financial instruments and others measured at fair value.
(3) Functional currency and presentation currency
The financial statements of each of Toyota Industries' entities are measured using the currency of the primary economic
environment in which the entity operates ("functional currency"). These consolidated financial statements are presented
in Japanese yen, which is the Company's functional currency, rounded down to the nearest million yen.
(4) Use of estimates and judgments
In the preparation of the IFRS-compliant consolidated financial statements, management of the Company is required tomake a number of judgments, estimates and assumptions that could have an impact on the application of accounting
policies, reporting of revenues and expenses as well as assets and liabilities. Actual results, however, could differ fromthose estimates.
Estimates and assumptions are continually reviewed. The effect of a change in accounting estimates is recognized in
the reporting period in which the change was made and in future reporting periods.
The information regarding judgments used in applying accounting policies that could have a material effect on the
Company's consolidated financial statements is included in "3. Significant Accounting Policies".
The information regarding uncertainties arising from assumptions and estimates that could result in material adjustmentsin the subsequent consolidated financial statements is as follows.
10. Goodwill and Intangible Assets (impairment losses)
17. Employee Benefits (Actuarial assumptions)― 18 ―

(5) Accounting standards and interpretations not yet adopted by the Company
Of the new accounting standards and the new interpretations that have been newly issued or amended by the date of
approval of the consolidated financial statements, there are no items that are not early adopted by the Company andthat have a material impact on the consolidated financial statements.
(6) Changes in presentation(Consolidated Statement of Cash Flows)"Payments for loans made" and "Proceeds from collection of loans" in "Cash flows from investing activities" which wereseparately presented in the previous fiscal year, are included in "Others" from FY2022, changes were made after
considering the materiality of the impact to the consolidated financial statements.
As a result, the amount of (1,107) million yen presented as "Payments for loans made" and the amount of 1,033 million
yen presented as "Proceeds from collection of loans" in "Cash flows from investing activities" in the consolidated
statement of cash flows for the previous fiscal year have been reclassified as "Others" of (74) million yen.
"Payments for acquisition of subsidiaries' stock not resulting in change in scope of consolidation" and "Proceeds fromsales of subsidiaries' stock not resulting in change in scope of consolidation" in "Cash flows from financing activities"
which were separately presented in the previous fiscal year, are included in "Others" from FY2022, changes were madeafter considering the materiality of the impact to the consolidated financial statements.
As a result, the amount of (5,602) million yen presented as "Payments for acquisition of subsidiaries' stock not resulting
in change in scope of consolidation" and the amount of 929 million yen presented as "Proceeds from sales ofsubsidiaries' stock not resulting in change in scope of consolidation" in "Cash flows from financing activities" in the
consolidated statement of cash flows for the previous fiscal year have been reclassified as "Others" of (4,672) million
yen.
"Net Increase (decrease) in commercial paper" and "Repayments of lease obligations," which were included in "Others"in "Cash flows from financing activities" in the previous fiscal year, are separately presented from FY2022, changes
were made after considering the materiality of the impact to the consolidated financial statements.
As a result, the amount of (82,996) million yen presented as "Others" in "Cash flows from financing activities" in the
consolidated statement of cash flows for the previous fiscal year has been reclassified as "Net Increase (decrease) incommercial paper" of (62,355) million yen, "Repayments of lease obligations" of (23,251) million yen, and "Others" of
2,610 million yen.

― 19 ―

3. Significant Accounting Policies(1) Basis of Consolidation(i) Business combinations
Business combinations are accounted for using the acquisition method. Goodwill is measured as the difference
between the aggregate of the acquisition-date fair value of the consideration transferred, the amount of any noncontrolling interests in the acquiree and, in a business combination achieved in stages, the acquisition-date fair valueof the acquirer's previously held equity interest in the acquiree, and the net of the acquisition-date amounts of theidentifiable assets acquired and the liabilities assumed. If the difference is negative, it is immediately recognized in
profit or loss. If the initial accounting for a business combination is incomplete by the end of the fiscal year in which
the combination occurs, provisional amounts of incomplete items are measured, which are adjusted during themeasurement period within one year from the date of acquisition. Acquisition-related costs incurred are recognized as
expenses. For intangible assets acquired through a business combination, see "(6) Intangible Assets (iii) Intangible
assets acquired in business combinations". For policy on impairment losses of non-financial assets including goodwill,see "(15) Impairment Losses (ii) Non-financial assets".
(ii) Subsidiaries
Subsidiaries are entities controlled by the Company. The financial statements of the subsidiaries are consolidated into
those of the Company from the date on which the Company acquires control until the date on which the Company
loses control. Subsidiaries' financial statements are adjusted if their accounting policies differ from those of theCompany. Intra-group balances, transactions and any unrealized gains or losses resulting from intra-grouptransactions are eliminated on consolidation. Comprehensive income is attributed to the owners of the parent and to
non-controlling interests, even if this results in the non-controlling interests having a deficit balance. Non-controllinginterests consist of the amount of those interests recognized initially at the date on which the Company acquires
control and the changes in non-controlling interests since the said date.
The consolidated financial statements contain financial statements of subsidiaries whose closing dates differ from thatof the parent as a result of those dates being required by laws of the countries where those subsidiaries reside. For
those subsidiaries, financial statements are prepared as of and years ended for March 31, and used in the
consolidated closing date.
(iii) Affiliates
Affiliates are entities in which Toyota Industries has a significant influence, but not control, over financial and operating
policies. Investments in affiliates are accounted for by the equity method from the date on which the Company
possesses a significant influence until the date on which the Company loses the significant influence.
If accounting policies of affiliates differ from those adopted by Toyota Industries, the Company makes necessary
modifications to align them with those of Toyota Industries.
Under the equity method, the investment is initially measured at cost and is adjusted thereafter for the post-acquisitionchange in the Toyota Industries' share of the affiliates' net assets. In doing so, the amount equivalent to Toyota
Industries' share of the affiliates' net assets is recognized in profit or loss of the Group. Also, the amount equivalent to
Toyota Industries' share of the affiliates' other comprehensive income is recognized in other comprehensive income of
Toyota Industries. The amount equivalent to Toyota Industries' share of the affiliates' loss is recognized as a loss until
the amount exceeds the investment (including long-term interests that, in substance, form part of the Toyota
Industries' net investment in that affiliate), and losses in excess of the investment are recognized only to the extent
that Toyota Industries has incurred legal or constructive liabilities or made payments on behalf of the affiliate.
Unrealized gains or losses from significant inter-company transactions are eliminated to the extent of Toyota
Industries' share of the equity interest in the affiliate.
Any excess of the cost of acquisition over identifiable assets, liabilities and contingent liabilities of the affiliate at thedate of acquisition is recognized as goodwill and included in the carrying value of the investment, and is not amortized.

― 20 ―

(2) Foreign Currencies(i) Foreign currency transactions
Foreign currency transactions are converted into the functional currency of each of Toyota Industries' entities using
the exchange rate prevailing at the transaction date. Monetary assets and liabilities denominated in foreign currencies
are converted into the functional currency using the exchange rate at the end of the reporting period.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated
into the functional currency at the spot rate using the exchange rate at the fair value calculation date.
Any exchange difference arising from the retranslation and settlement is recognized in profit or loss of the period.
(ii) Foreign operations
Assets and liabilities of foreign operations including goodwill and fair value adjustments arising from acquisition aretranslated at the exchange rates at the end of the reporting period. Income and expenses of foreign operations aretranslated at the average exchange rates during the fiscal year, except in cases where exchange rates fluctuatesignificantly. If exchange rates fluctuate significantly, the exchange rate at the transaction date is used.
Foreign currency differences from the translation are recognized in other comprehensive income. When a foreign
operation is disposed of or control, significant influence or joint control is lost, the cumulative amount of exchange
differences related to that foreign operation is reclassified to profit or loss as part of the gain or loss on the disposal.
(3) Cash and Cash Equivalents
Cash and cash equivalents are cash on hand, readily available deposits and short-term highly liquid and low risk
investments with maturities not exceeding three months at the time of purchase.
(4) Inventories
Inventories are stated at the lower of cost or net realizable value. Cost of inventories includes purchase costs,
processing costs and all other costs incurred in bringing them to their existing location and condition, and is calculated
primarily using the moving average method.
Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs ofcompletion and the estimated costs necessary to sell.
(5) Property, Plant and Equipment
Property, plant and equipment are measured using the cost model and stated at cost less accumulated depreciation
and accumulated impairment losses.
Estimated useful lives and the method of depreciation are reviewed at the fiscal year-end. Changes in estimateduseful lives or depreciation methods are accounted for on a prospective basis as a change in accounting estimate.
Property, plant and equipment, excluding land and construction in progress, are depreciated on a straight-line basis
over their estimated useful lives. Right-of-use assets are depreciated on a systematic basis from the commencement
date to the earlier of the end of the economic life of the underlying asset or the end of the lease term. The estimateduseful lives for major classes of assets are as follows.
・ Buildings and structures: 5 to 60 years
・ Machinery and vehicles: 3 to 22 years
An item of property, plant and equipment is derecognized on disposal or when it is withdrawn from use and no future
economic benefits are expected from its disposal. Any gain or loss arising from derecognition of an item of property,
plant and equipment is included in profit or loss when it is derecognized.
For the policy on impairment of property, plant and equipment, see "(15) Impairment Losses (ii) Non-financial assets".

― 21 ―

(6) Intangible Assets
Intangible assets are measured using the cost model and stated at cost less accumulated depreciation andaccumulated impairment losses.
(i) Intangible assets acquired separately
Intangible assets acquired separately with finite useful lives are carried at cost less accumulated amortization andaccumulated impairment losses.
(ii) Internally generated intangible assets
Expenditure on research is recognized as an expense in the consolidated statement of profit or loss in the fiscal year
in which it is incurred.
An intangible asset arising from development (or from the development phase of an internal project) is recognized if,
and only if, all of the following can be demonstrated:a) the technical feasibility of completing the intangible asset so that it will be available for use or saleb) its intention to complete the intangible asset and use or sell itc) its ability to use or sell the intangible assetd) how the intangible asset will generate probable future economic benefitse) the availability of adequate technical, financial and other resources to complete development and to use or sell
the intangible assetf) its ability to measure reliably the expenditure attributable to the intangible asset during its development
The cost of an internally generated intangible asset is the sum of expenditure incurred from the date when theintangible asset first meets the recognition criteria above to the completion of its development. If an internallygenerated asset is not recognized, a development cost is recognized as an expense in the consolidated statement of
profit or loss in the fiscal year in which it is incurred.
After initial recognition, an internally generated intangible assets are carried at cost less accumulated amortization
and accumulated impairment losses.
(iii) Intangible assets acquired in business combinations
The cost of intangible assets acquired in a business combination is measured at fair value at the acquisition date.
After initial recognition, intangible assets acquired in a business combination are carried at cost less accumulated
amortization and accumulated impairment losses.
Intangible assets acquired in business combinations with indefinite useful lives are carried at cost less accumulated
impairment losses, without being amortized but tested for impairment, in the same way as goodwill.
(iv) Amortization of intangible assets
Intangible assets with finite useful lives are amortized on a straight-line basis over their estimated useful lives. The
estimated useful lives of major classes of assets are as follows.
・ Software: 3 to 5 years
・ Development assets: 2 to 10 years
・ Customer-related assets: 12 to 20 years
・ Technology-related assets: 10 to 20 years
Estimated useful lives and amortization methods are reviewed at each reporting date, and any revisions are applied
as revisions to accounting estimates prospectively.

― 22 ―

(v) Derecognition of intangible assets
An item of intangible assets is derecognized on disposal or when it is withdrawn from use and no future economic
benefits are expected from its disposal. Any gain or loss arising from derecognition of an item of intangible assets is
included in profit or loss when it is derecognized.
For policies on impairment of intangible assets, see "(15) Impairment Losses (ii) Non-financial assets".
(7) Leases(i) Leases as lessee
Lease liabilities are measured at the discounted present value of outstanding lease payments at the commencement
date of the lease. After the commencement date of the lease, lease liabilities are measured by increasing the carrying
amount to reflect interest on the lease liabilities and reducing the carrying amount to reflect the lease payments made.
The interest rate implicit in the lease (if that rate can be readily determined) or lessee's incremental borrowing rate isused for the discount rate.
Right-of-use assets are measured at cost that is the initial measurement amount of lease liability at thecommencement date of the lease adjusted by the amount of any initial direct costs, prepaid lease payments and otherexpenses. After the commencement date of the lease, right-of-use assets are measured at cost less any accumulated
depreciation and accumulated impairment losses as determined using the cost model. Right-of-use assets are
depreciated on a systematic basis from the commencement date to the earlier of the end of the economic life of theunderlying asset or the end of the lease term.
Right-of-use assets are included in "Property, plant and equipment" or "Goodwill and intangible assets". Leaseliabilities are included in "Other financial liabilities (Current liabilities)" or "Other financial liabilities (Non-current
liabilities)".
Lease payments for short-term leases and leases of low value assets are recognized as expense using the straightline method over the lease term. For contracts that include a lease component and a non-lease component, theCompany accounts for the lease component and the non-lease component as a single lease component without
separating the non-lease component.
In reference to whether a contract is a lease or whether a contract contains a lease, Toyota Industries makes
judgments based on the substance of the contract even though it is not legally considered as a lease.
(ii) Leases as lessor
Contracts containing leases are classified as finance leases whenever substantially all risks and economic values
incidental to the ownership of assets are transferred to the lessee, and other leases are classified as operating leases.
For financial leases, an amount equal to the net investment in the lease by discounting the total amount of lease
payments and unguaranteed residual value with the interest rate implicit in the lease is recorded as lease investment
assets. If Toyota Industries is a manufacturer or distributor lessor in a lease, selling profit or loss in a financial lease isrecognized in accordance with the accounting policy it follows for sales of goods (see "(12) Revenues"). Financial
income is allocated to each period over the lease term so that the interest rate will be proportional to an amount equal
to the net investment in the lease. If Toyota Industries is not a manufacturer or distributor lessor in a lease, financial
income is allocated to each period over the lease term so that the interest rate will be proportional to an amount equal
to the net investment in the lease.
Income from operating leases is recognized on a straight-line basis over the lease term, unless another systematic
basis is more representative of the time pattern in which use benefit derived from the leased asset is diminished.

― 23 ―

(8) Provisions
The Company recognizes provisions if it has a present legal or constructive obligation as a result of past events, it isprobable that an outflow of resources embodying economic benefits will be required to settle the obligation and theamount of obligation can be reliably estimated.
In case the time value of money is material, the amount of a provision is measured at the present value of the amountof expenditures expected to be required to settle the obligation.
(9) Government Grants
A government grant is recognized at fair value when there is reasonable assurance that Toyota Industries will comply
with any conditions attached to the grant and it will receive the grant. When a grant is received for acquisition of anasset, the carrying amount of the asset is calculated by deducting the amount of the grant from the acquisition cost of
the asset.
(10) Employee Benefits(i) Post-employment benefits
Toyota Industries adopts the pension and lump-sum payment defined benefit plan and the defined contribution plan.
Toyota Industries' liabilities (assets) in respect of defined benefit plans is calculated for each plan by estimating theamount of future benefits earned by employees in the previous fiscal year and the fiscal year under review,
discounting that amount to the present value, deducting the fair value of plan assets, making adjustments concerning
the asset ceiling to that amount and, where necessary, considering economic benefits available. Remeasurements ofliabilities (assets) in respect of defined benefit plans are recognized in other comprehensive income and at the time of
their occurrence directly transferred from other components of equity to retained earnings. Past service cost isrecognized in profit or loss as it occurs. Market yields on high-quality corporate bonds with roughly the same maturity
as that of Toyota Industries' net defined benefit liabilities at the end of the reporting period are used as the discountrate. Interest expenses on liabilities (asset) in respect of defined benefit plans are presented as financial expenses.
Contributions under the defined contribution plan are expensed as the employees' services are provided.
(ii) Short-term employee benefits
Short-term employee benefits are expensed as the relevant services are provided and are not discounted.
For bonuses, if Toyota Industries has the present legal and constructive obligation to pay them as the result of past
services provided by employees and the amount can be reliably estimated, the amount estimated to be paid isrecognized as a liability.
(iii) Other long-term employee benefits
The amount of an obligation in respect of the long-service travel award scheme is calculated by estimating theamount of future benefits earned by employees in the current and prior fiscal years and discounting that amount to thepresent value.
Market yields on high-quality corporate bonds with roughly the same maturity as that of Toyota Industries' long-term
employee benefits at the end of the reporting period are used as the discount rate.
(iv) Share-based compensation
Toyota Industries has the cash-settled share-based compensation plan for some of its subsidiaries outside Japan.
Cash-settled share-based compensation is measured at the fair value of the goods or services received and liabilities
incurred. The fair value of the liabilities is remeasured at the end of each reporting period and on the settlement date,and changes in fair value are recognized in profit or loss.

― 24 ―

(11) Financial Instruments
A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity. The Group recognizes a financial asset or a financial liability when it becomes a party to
the contract of a financial instrument. A purchase or sale of financial assets is recognized or derecognized at the trade
date.
(i) Non-derivative financial assets
Toyota Industries categorizes non-derivative assets into financial assets measured at amortized cost, financial assets
measured at fair value through other comprehensive income (FVTOCI) and financial assets measured at fair value
through profit or loss (FVTPL).
For details of fair value measurement, see "29. Financial Instruments (3) Fair value of financial instruments".
(Financial assets measured at amortized cost)
Toyota Industries categorizes financial assets as financial assets measured at amortized cost if financial assets areheld with the objective of collecting contractual cash flows and their contractual terms provide cash flows on
specified dates that are solely payments of principal and interest on the principal amount outstanding. Financial
assets measured at amortized cost are initially measured at fair value. The carrying amount of financial assets
measured at amortized cost is subsequently measured using the effective interest method.
(Financial assets measured at fair value)
Toyota Industries categorizes financial assets other than financial assets measured at amortized cost as financial
assets measured at fair value. Financial assets measured at fair value are further divided into the followingclassifications according to holding purpose.
(Equity instruments measured at fair value through other comprehensive income (FVTOCI))
Shares and other financial assets held mainly for the purpose of maintaining or enhancing business relationships
with investees are designated at initial recognition as financial assets at FVTOCI.
Equity instruments at FVTOCI are measured at fair value at initial recognition and changes in fair value thereafter
are recognized in other comprehensive income. However, dividends arising from financial assets at FVTOCI arerecognized in profit or loss.
If an equity instrument at FVTOCI is derecognized, the cumulative amount of other comprehensive income
recognized in other components of equity on the consolidated statement of financial position is directly transferred
to retained earnings.
(Financial assets measured at fair value through profit or loss (FVTPL))
Financial assets not designated as financial assets at FVTOCI of financial assets measured by Toyota Industries
are classified as financial assets at FVTPL.
Financial assets at FVTPL are measured at fair value at initial recognition and changes in fair value thereafter are
recognized in profit or loss.
(ii) Non-derivative financial liabilities
Non-derivative financial liabilities are measured at fair value at initial recognition and thereafter at amortization costusing the effective interest method.
A financial liability is derecognized when its contractual obligations are discharged or canceled, or expire.

― 25 ―

(iii) Derivatives
Toyota Industries holds derivative financial instruments to hedge foreign currency and interest rate fluctuation risks,
including foreign currency forward contracts, currency options, currency swaps, interest rate swaps, interest rate andcurrency swaps, and interest rate options.
For all of these derivatives, Toyota Industries recognizes financial assets or financial liabilities when it becomes theparty to these derivatives contracts.
Some of derivatives Toyota Industries holds for hedging purposes do not meet hedge accounting requirements.
Changes in fair value of these derivatives are immediately recognized in profit or loss.
Toyota Industries adopts cash flow hedges and fair value hedges as a hedge accounting method.
(iv) Offsetting financial assets and liabilities
Financial assets and liabilities are offset and reported as net amounts in the consolidated statement of financial
position only if Toyota Industries currently has a legally enforceable right to set off the recognized amounts andintends to settle on a net basis or to realize the asset and settle the liability simultaneously.
(12) Revenues
Toyota Industries recognizes revenue based on the following five-step model.
Step 1: Identify the contract with a customer
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation
Toyota Industries sells automotive-related products such as vehicles, engines, foundry parts for engines, car airconditioning compressors and electronics parts in the Automobile Business; lift trucks, warehouse trucks and aerial
work platforms in the Materials Handling Equipment Business; and weaving machinery, spinning machinery,
instruments for yarn testing and cotton classing in the Textile Machinery Business. For sales of such products, since
the customer obtains control over the product when a customer accepts goods after inspection, and therefore theperformance obligation is judged to have been satisfied, Toyota Industries normally recognizes revenue when acustomer accepts goods after inspection. Revenue is measured at the amount of consideration promised in a contract
with the customer, net of discounts, incentives to distributors and other items.
For maintenance contracts and other services that include construction contracts such as automated storage andretrieval systems, and logistics solutions, Toyota Industries recognizes revenue based on the progress of performanceobligation. The progress level is mainly computed according to the ratio of cumulative cost incurred against the total
amount of estimated cost.

― 26 ―

(13) Financial Income and Financial Expenses
Financial income includes interest income, dividends income, gains on foreign currency translation and gain onderivatives (excluding gain or loss on hedging instruments that are recognized in other comprehensive income).
Interest income is recognized as earned using the effective interest method. Dividends income is recognized on thedate of Toyota Industries' vesting.
Financial expenses include interest expense, losses on foreign currency translation and loss on derivatives (excluding
loss on hedging instruments that are recognized in other comprehensive income).
(14) Income Taxes
Income taxes comprise current taxes and deferred taxes. These are recognized in profit or loss except taxes that arise
from items that are recognized either in other comprehensive income or directly in equity or from businesscombinations.
Taxes for the fiscal year under review are the expected taxes payable or receivable on the taxable profit or loss for theyear, using the tax rates and tax laws enacted or substantively enacted by the end of the reporting period.
Deferred tax assets and liabilities are recognized on temporary differences between the carrying amounts of assets
and liabilities for accounting purposes and their tax basis. Deferred tax assets and liabilities are not recognized if thetemporary difference arises from the initial recognition of an asset or liability in a transaction not related to a businesscombination and affects neither accounting profit nor taxable profit. Also, deferred tax liabilities are not recognized if
the taxable temporary difference arises from the initial recognition of goodwill.
Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries
and affiliates. However, deferred tax liabilities are not recognized if Toyota Industries is able to control the reversal of
the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred tax assets arising from deductible temporary differences associated with such investments are only
recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize thebenefits of the temporary differences and they are expected to reverse in the foreseeable future.
Deferred tax assets and liabilities are measured at the tax rates expected to apply in the period in which the asset
realized or the liability is settled based on tax laws that have been enacted or substantively enacted by the end of thereporting period.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets
against current tax liabilities and when income taxes are levied by the same taxation authority on the same taxable
entity, or on different taxable entities that intend either to settle current tax assets and liabilities on a net basis, or to
realize the assets and settle the liabilities simultaneously.
Deferred tax assets are recognized for unused tax losses, tax credits and deductible temporary differences to theextent that it is probable that taxable profits will be available against which they can be utilized. The carrying amountof deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer
probable that sufficient taxable profits will be earned to allow related tax benefits to be realized.

― 27 ―

(15) Impairment Losses(i) Financial assets
Financial assets measured at amortized cost are assessed for impairment losses based on expected credit losses.
At the end of the reporting period, if credit risk has not increased significantly after initial recognition, the amount ofloss allowance is calculated based on the expected credit losses resulting from default events that are possible within
12 months after the reporting date (12-month expected credit losses). On the other hand, at the end of the reporting
period, if credit risk has increased significantly after initial recognition, the amount of loss allowance is calculated
based on the expected credit losses resulting from all possible default events over the life of the financial instrument(lifetime expected credit losses).
However, regardless of the above, lifetime expected credit loss measurement always applies to trade receivables andlease investment assets without a significant financing component.
For details, see "29. Financial Instruments (2) Matters concerning risk management".
(ii) Non-financial assets
Toyota Industries reviews carrying amounts of non-financial assets, excluding inventories and deferred tax assets, atevery reporting fiscal year-end to determine whether there is any indication of impairment. If there is any indication of
impairment, impairment testing is conducted based on the recoverable amount of the asset. Goodwill and intangible
assets with indefinite useful lives are tested annually for impairment regardless of whether there is any indication of
impairment.
A cash-generating unit (CGU), which is a unit for conducting impairment testing, is the smallest group of assets thatgenerates cash inflows that are generally independent of cash flows of other assets or groups of assets. A CGU for
goodwill is the smallest unit monitored for internal control purposes and is no larger than an operating segment before
aggregation. Impairment testing for goodwill is conducted at a CGU or a group of CGUs for the smallest unit
monitored for internal control purposes and within the scope of an operating segment before aggregation.
The recoverable amount of an asset or CGU is the greater of its value in use or its fair value less cost to sell. In
calculating the value in use, estimated future cash flows are discounted to the present value using a pre-tax discountrate that reflects the time value of money and risks specific to the asset not considered in estimating future cash flows.
Because corporate assets do not generate independent cash inflows, if there is an indication that a corporate asset
may be impaired, impairment testing is conducted based on the recoverable amount for the CGU to which thecorporate asset belongs.
An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount. An
impairment loss recognized in relation to a CGU is allocated to reduce the carrying amount of assets within the CGU
on a pro rata basis determined by the relative carrying amount of each asset.
An asset or CGU impaired in prior years is reviewed at every reporting fiscal year-end to determine whether there is
any indication of a reversal of impairment loss recognized in prior years. The recoverable amount is estimated for an
impairment loss recognized in prior years for an asset or CGU with an indication of reversal of impairment, and the
impairment loss is reversed if the recoverable amount exceeds the carrying amount. The carrying amount after
reversal of the impairment loss must not exceed the carrying amount of the asset that would be determined if noimpairment had been recognized and the asset had been depreciated or amortized until the reversal. An impairment
loss recognized for goodwill is not reversed.

― 28 ―

(16) Earnings per Share
Basic earnings per share are calculated by dividing profit attributable to ordinary equity holders of the parent entity by
the weighted-average number of common stock issued and outstanding after adjusting treasury stock for eachcalculation period. Diluted earnings per share take into account the impacts of all dilutive shares that bear the effects
of dilution in calculating the weighted-average number of shares issued and outstanding.
(17) Reporting by Segment
An operating segment is one of the constituent units of any business activity that earns revenue and incurs expenses,
including transactions with another operating segment. The results of all operating segments are such that theirfinancial information can be obtained individually and are periodically reviewed by the management for allocating
management resources to each segment and assessing operating performance.
(18) Changes in Accounting Policies
The major accounting standards that have been adopted by Toyota Industries from FY2022 are as follows.
IFRS

Title

Description of amendments

IFRS 9IFRS 7IFRS 16

Financial Instruments
Financial Instruments: Disclosures
LeasesInterest Rate Benchmark Reform Phase 2 - Amendments to address
impact to the financial reporting by replacing existing interest rate
indicators with alternative as a result of interest rate benchmark
reform.

The above amendments of the accounting standards will not have a material impact on Toyota Industries.

― 29 ―

4. Segment Information
The operating segments reported below are the segments of Toyota Industries for which separate financial information
is available and are subject to evaluate regularly by executive management in deciding how to allocate resources andin assessing performance.
The reporting segments of Toyota Industries consist of Automobile, Materials Handling Equipment and Textile
Machinery. The similarity of products and services are taken into account for the separation. Within the Automobile
Segment, vehicles, engines, car air-conditioning compressors and others are included due to the similarity of theireconomic characteristics such as net sales. The main products and services of each segment are as follows.
Segment

Main products and services of each segment

Automobile

Vehicles, diesel and gasoline engines, foundry parts for engines, car air-conditioning
compressors, electronics components

Materials Handling
Equipment

Lift trucks, warehouse trucks, automated storage and retrieval systems, aerial work
platforms, logistics solutions, sales financing businessTextile Machinery

Weaving machinery, spinning machinery, instruments for yarn testing and cotton
classing

The accounting method of reporting segment information is based on "3. Significant Accounting Policies".
Segment profit is based on operating profit.

― 30 ―

(1) Operating segment information(i) Sales, profits or losses, assets, liabilities and other significant monetary information
FY2021 (April 1, 2020 - March 31, 2021)(Millions of yen)

Sales
Outside customer
sales
Inter-segment sales
and transfers
Total
Segment profit (loss)
Segment assets

Automobile

Materials
Handling
Equipment

TextileMachinery

Others(Note 1)

591,673

1,431,455

40,85054,322

2,118,302－

2,118,302

23,235

1,332

275

26,61051,454(51,454)－614,909

1,432,788

41,12580,9332,169,756(51,454)

2,118,302

4,786

109,984(1,125)

4,489

118,134

25

118,159

660,9442,078,219

54,203

193,688

2,987,055

3,516,930

6,503,986

Total

Adjustments Consolidated(Note 2)
(Note 3)Financial income

73,999Financial expenses(9,830)Share of profit (loss) ofinvestments accounted
1,682
for by the equity
methodProfit before income
184,011taxes(Notes) 1. "Others" represents businesses not included in the reporting segments, and its primary service is the landtransportation.
2. Breakdown of adjustments
25 million yen included in "Adjustments" for "Segment profit (loss)" is inter-segment transactions.
"Adjustments" for "Segment assets" includes corporate assets.
Corporate assets mainly consist of the Company's cash and deposits as well as marketable securities andinvestment securities.
"Segment profit (loss)" reconciles to operating profit disclosed in the consolidated statement of profit or3.
loss.
Other significant items(Millions of yen)
Automobile

Materials
Handling
Equipment

TextileMachinery

Others(Note)

Total

Adjustments Consolidated

Depreciation and
66,086
136,7443,684
3,324
209,839
209,839－
amortization
Impairment losses(amount in parenthesis
(10)
3,019
3,008
3,008
－
－
－
has been reversed)
Investments accounted
for by the equity
4,030
12,72649
616,812
16,812－
methodIncrease in property,
plant and equipment
90,377
175,651
2,105
2,783
270,917
270,917－and intangible assets(Note) "Others" represents businesses not included in the reporting segments, and its primary service is the landtransportation.

― 31 ―

FY2022 (April 1, 2021 - March 31, 2022)(Millions of yen)
Automobile

Materials
Handling
Equipment

TextileMachinery

Others(Note 1)

Total

Adjustments Consolidated(Note 2)
(Note 3)

Sales
Outside customer
792,813
1,789,434
69,21553,7202,705,183
2,705,183－
salesInter-segment sales
28,512507
284
28,897
58,201(58,201)－
and transfers
Total
821,326
1,789,941
69,49982,6172,763,385(58,201)
2,705,183
Segment profit (loss)
33,007
113,616
5,549
7,147
159,319(253)
159,066
Segment assets
748,397
2,431,790
71,994262,4293,514,612
4,112,507
7,627,120
Financial income
89,941
Financial expenses(7,282)
Share of profit (loss) ofinvestments accounted
4,397
for by the equity
methodProfit before income
246,123
taxes(Notes) 1. "Others" represents businesses not included in the reporting segments, and its primary service is the landtransportation.
2. Breakdown of adjustments(253) million yen included in "Adjustments" for "Segment profit (loss)" is inter-segment transactions.
"Adjustments" for "Segment assets" includes corporate assets.
Corporate assets mainly consist of the Company's cash and deposits as well as marketable securities andinvestment securities.
"Segment profit (loss)" reconciles to operating profit disclosed in the consolidated statement of profit or3.
loss.
Other significant items(Millions of yen)
Automobile

Materials
Handling
Equipment

TextileMachinery

Others(Note)

Total

Adjustments Consolidated

Depreciation and
66,833150,073
3,632
3,198
223,737
223,737－
amortization
Impairment losses(amount in parenthesis
25
2,343
2,368
2,368
－
－
－
has been reversed)
Investments accounted
for by the equity
5,965
15,31649
621,337
21,337－methodIncrease in property,
plant and equipment
103,961
192,206
1,606
4,548
302,322302,322－and intangible assets(Note) "Others" represents businesses not included in the reporting segments, and its primary service is the landtransportation.

― 32 ―

(2) Sales by productOutside customer sales by product consist of the following.
(Millions of yen)
FY2021
FY2022(April 1, 2020 - March 31, 2021) (April 1, 2021 - March 31, 2022)
Automobile

591,673

792,813

Vehicle88,39383,463Engine139,975

267,639

Car air-conditioning compressor

301,621356,196

Electronics parts and others

61,68385,513

Materials Handling Equipment

1,431,455

1,789,434

40,85069,215

Textile Machinery
Others54,32253,720Total

2,118,302

2,705,183(3) Geographical information
Outside customer sales by geography consist of the following.
(Millions of yen)
FY2021
FY2022(April 1, 2020 - March 31, 2021) (April 1, 2021 - March 31, 2022)
Japan

614,884

753,808

U.S.A.

634,570

805,746

Others868,847

1,145,628

Total

2,118,302

2,705,183(Note) Net sales are provided by location of customer.
Non-current assets by geography consist of the following.
(Millions of yen)
FY2021(As of March 31, 2021)

FY2022(As of March 31, 2022)

Japan

535,041

563,533

U.S.A.

393,234

432,615

Netherlands

167,987

176,892

Others315,714361,994

Total

1,411,977

1,535,036(Note) Non-current assets (excluding financial instruments, deferred tax assets, net defined benefit asset, and rights
arising from insurance contracts) are provided by location of assets.
(4) Principal customer information
Toyota Industries sells goods and provides services to Toyota Motor Corporation and its subsidiaries. Sales fromToyota Motor Corporation and its subsidiaries amounted to 251,346 million yen and 379,530 million yen for the fiscal
years ended March 31, 2021 and 2022, respectively and were included in the outside customer sales of the Automobile,
Materials Handling Equipment and Others segments.
Toyota Industries sells goods to DENSO Corporation and its subsidiaries. Sales from DENSO and its subsidiaries
amounted to 304,692 million yen and 375,072 million yen for the fiscal years ended March 31, 2021 and 2022,
respectively and were included in the outside customer sales of the Automobile, Materials Handling Equipment andOthers segments.

― 33 ―

5. Cash and Cash Equivalents
Cash and cash equivalents consist of the following.
(Millions of yen)
FY2021(As of March 31, 2021)
Cash and deposits

238,248

247,085－－

238,248

247,085

Short-term investments (securities) which havean original maturity within three months
Total

FY2022(As of March 31, 2022)

The balance of cash and cash equivalents on the consolidated statement of financial position as of the end of the fiscal
years ended March 31, 2021 and 2022 are consistent with the balances of cash and cash equivalents on the
consolidated statement of cash flows.
These short-term investments are financial assets measured at amortized cost.
6. Trade Receivables and Other Receivables
Trade receivables and other receivables consist of the following.
(Millions of yen)
FY2021(As of March 31, 2021)

FY2022(As of March 31, 2022)

Trade notes and accounts receivable

405,571471,528

Contract assets

37,952

51,170Loans for sales financing

136,329

174,398

Accounts receivable - other

30,05040,854

Lease investment assets

365,008

398,090

23

21

OthersElimination: Allowance for doubtful accounts(9,145)(12,236)

Total

965,789

1,123,826

These receivables are mainly financial assets measured at amortized cost.
Amounts by collection or settlement period consist of the following.
(Millions of yen)
FY2021(As of March 31, 2021)

FY2022(As of March 31, 2022)

Due within 12 months

621,851

741,642Due after 12 months

343,938

382,183

Total

965,789

1,123,826― 34 ―

7. Other Financial Assets(1) Outline of other financial assets
Other financial assets consist of the following.
(Millions of yen)
FY2021(As of March 31, 2021)

FY2022(As of March 31, 2022)

Loans

2,264

2,324

Stock

3,028,036

3,697,319

Derivative assets

9,422

24,457

Others17,92623,5493,057,650

3,747,650

5,947

12,672

Non-current assets

3,051,702

3,734,978

Total

3,057,650

3,747,650

Total

Current assets

Loans are categorized as financial assets measured at amortized cost, stock is mainly categorized as financial assets
measured at fair value through other comprehensive income and derivative assets are categorized as financial assets
measured at fair value through profit or loss (excluding items for which hedge accounting is applied). With respect toequity instruments measured at fair value through profit or loss included in stock or others, there is no monetarysignificance.
(2) Financial assets measured at fair value through other comprehensive income
Toyota Industries designates investments in equity instruments held for maintaining and reinforcing business relations
as financial assets measured at fair value through other comprehensive income in consideration of the purpose ofholding them.
Name and fair values of financial assets measured at fair value through other comprehensive income consist of thefollowing.
(Millions of yen)Name

FY2021(As of March 31, 2021)

Toyota Motor Corporation

FY2022(As of March 31, 2022)

2,054,624

2,649,955

DENSO Corporation

509,681545,269

Toyota Tsusho Corporation

182,851

199,187

Towa Real Estate Co., Ltd..

85,871109,065AISIN Corporation

86,98786,883

Ibiden Co., Ltd.

31,67437,647

Toyota Boshoku Corporation

14,195

15,529JTEKT Corporation

8,828

7,531

Toray Industries, Inc.

5,119

4,589

TOYOTA-KAI Medical Corporation

4,445

4,445

Others

45,00743,546

Total(Note)

3,029,286
3,703,652
Effective on April 27, 2022, Towa Real Estate Co., Ltd. changed its company name to TOYOTA FUDOSAN
Co., Ltd.

― 35 ―

(3) Derecognition of financial assets measured at fair value through other comprehensive income
To increase efficiency and promote the effective use of assets in holding, a part of financial assets measured at fairvalue through other comprehensive income is sold, thereby terminating recognition thereof.
Fair value at the time of sale and cumulative profit or loss recognized as other comprehensive income for each fiscal
year consist of the following. Concerning the dividends recognized during the fiscal year ended March 31, 2022, thoserelating to the investment whose recognition was suspended during the fiscal year were immaterial. Cumulative profit
or loss related to the disposal of financial liabilities is fully reclassified into retained earnings.
(Millions of yen)
FY2021
FY2022(April 1, 2020 - March 31, 2021) (April 1, 2021 - March 31, 2022)
Fair value at the time of termination of recognition

22

782

Cumulative profit or loss related to disposal

(2)

486

(Note) Financial assets measured at fair value through other comprehensive income include debt instruments but
they were immaterial.
8. Inventories
Inventories consist of the following.
(Millions of yen)
FY2021(As of March 31, 2021)

FY2022(As of March 31, 2022)

Merchandise and finished goods

139,481

202,829Work in process

72,370109,152

Raw materials and supplies

80,609

121,980

Total

292,461

433,961

Expenses reclassified from inventories amount to 1,627,894 million yen and 2,097,501 million yen for the fiscal years
ended March 31, 2021 and 2022, respectively.
The amount of inventory write-down recognized as expenses (continuing business) and the reversal amount of writedown consist of the following.
(Millions of yen)
FY2021
FY2022(April 1, 2020 - March 31, 2021) (April 1, 2021 - March 31, 2022)
Amount of write-downReversal amount of write-down― 36 ―

3,762

5,295

760

565

9. Property, Plant and Equipment(1) Increase (decrease)
Acquisition cost

(Millions of yen)
Leases as
lessorOther than leases as lessor
Buildings
andstructures
Balance as of April 1,
2020

Tools,
Machineryfurniture andand vehicles
fixtures

Total
Construction Machinery
in progress and vehicles

Land521,504

965,028

148,533

142,458

37,420510,380

2,325,324

Acquisition

14,24329,3596,125

821

102,865

102,295

255,710

Disposal(7,543)(29,187)(5,639)

(205)

(67)

(54,190)(96,834)

20,00926,9384,229

355(69,524)

17,992－

11,42017,641

5,014

1,470

1,435

37,94074,921

3,922

(616)

247

779

(3,739)(48,888)(48,295)

563,556

1,009,163

158,509

145,679

68,389565,5292,510,827

Acquisition

21,07742,001

9,519

1,977

105,398

101,391

281,366

Disposal(7,125)(34,355)(6,663)

(290)

(80)

(51,405)(99,920)

26,99059,8076,713

18(111,088)

17,559－18,31935,002

8,048

1,375

2,143

52,285

117,173

1,244

315

103

726

(3,608)(42,451)(43,669)

Transfer from
Construction inprogress
Foreign currencytranslation difference
OthersBalance as of March
31, 2021

Transfer from
Construction inprogress
Foreign currencytranslation difference
OthersBalance as of March
624,062
1,111,935
176,229
149,486
61,154642,9092,765,778
31, 2022(Notes) 1. The amount related to property, plant and equipment in progress is presented as "Construction in progress".
2. "Others" includes "Inventories" related to materials handling equipment for operating lease and others.

― 37 ―

Accumulated depreciation and accumulated impairment losses(Millions of yen)
Leases as
lessorOther than leases as lessor
Buildings
andstructures
Balance as of April 1,
2020

Tools,
Machineryfurniture andand vehicles
fixtures

Total
Construction Machinery
in progress and vehicles

Land279,035

714,851

115,676

1,332－

223,233

1,334,129

Depreciation

24,28062,69013,941

273－

83,349184,536

Disposal(6,112)(26,588)(5,305)(11)－(34,981)(72,999)

0

345

0

(1)

－

2,486

2,831

5,298

13,089

3,968

7

－

20,986

43,349

2,384

4,887

46

9

－

(31,753)(24,424)

304,887

769,276

128,3261,610－

263,3211,467,421

Depreciation

27,11564,19014,631

323－

91,498

197,758

Disposal(6,117)(31,312)(6,396)(70)－(31,459)(75,356)

1

20

(0)

0

－

2,347

2,368

8,192

27,684

6,436

21

－

24,67967,013

(112)

7,093

20

138

－

(34,639)(27,500)

Impairment losses(Reversal of
impairment losses)
Foreign currencytranslation difference
OthersBalance as of March
31, 2021

Impairment losses(Reversal of
impairment losses)
Foreign currencytranslation difference
OthersBalance as of March
333,965
836,951
143,017
2,023
315,747
1,631,704－
31, 2022(Note) Depreciation and impairment losses of property, plant and equipment is included in mainly "Cost of sales" and"Selling, general and administrative expenses" in the consolidated statement of profit or loss.
Carrying amount(Millions of yen)
Leases as
lessorOther than leases as lessor
Buildings
andstructures
Balance as of April 1,
2020
Balance as of March
31, 2021
Balance as of March
31, 2022

Tools,
Machineryfurniture andand vehicles
fixtures

Total
Land

Construction Machinery
in progress and vehicles

242,468

250,176

32,857141,125

37,420287,146

991,195

258,669

239,887

30,183144,069

68,389302,207

1,043,405

290,097

274,984

33,212

147,463

61,154

327,162

1,134,074― 38 ―

10. Goodwill and Intangible Assets(1) Increase (decrease)
Acquisition cost

(Millions of yen)
Intangible
assetsrecognizedthroughbusiness
combination

Development
assets161,674

174,478

35,512

83,804

12,913

468,384

Acquisition

－

－

－

3,887

1,795

5,682

Increase throughin-house development

－

－

5,487

4,036

－

9,524

Disposal－(1,371)(889)(1,654)(3)(3,919)

8,658

9,799

1,608

2,287

861

23,215

532

－

1,149

(968)

1,208

1,921

170,865

182,906

42,86891,392

16,776504,809

Acquisition

－

－

－

6,617

3,187

9,804

Increase throughin-house development

－

－

7,995

3,154

－

11,150

Disposal－(5,637)

(950)

(744)

(477)

(7,810)Foreign currencytranslation difference

15,436

14,515

1,819

3,156

2,876

37,804

Others

5,317

3,656

－

73

(2,398)6,648

191,619

195,440

51,732

103,650

19,964562,406

Goodwill

Balance as of April 1, 2020

Foreign currencytranslation difference
OthersBalance as of March 31,
2021

Balance as of March 31,
2022― 39 ―

Software

OthersTotal

Accumulated amortization and accumulated impairment losses
Intangible
assetsrecognized Development
Goodwillthroughassetsbusiness
combination(Millions of yen)

Software

OthersTotal－

41,512

15,552

52,812

3,804

113,682

Amortization

－

8,650

4,811

9,131

2,711

25,303

Disposal－(1,371)(889)(1,515)(3)(3,779)

－

－

9

－

－

9

－

2,223

565

1,420

372

4,581

－

－

－

102

1,459

1,561

－

51,01420,04961,9508,344

141,359

Amortization

－

9,053

6,413

8,960

1,552

25,978

Disposal－(5,637)

(950)

(641)

(31)

(7,261)

－

－

－

－

－

－

－

4,783

833

2,176

2,084

9,876

－

－

－

9

(3,438)(3,429)Balance as of April 1, 2020

Impairment losses(Reversal of impairment
losses)Foreign currencytranslation difference
OthersBalance as of March 31,
2021

Impairment losses(Reversal of impairment
losses)Foreign currencytranslation difference
OthersBalance as of March 31,
59,214
26,34472,454
8,510
166,524－2022(Note) Amortization of intangible assets is included in "Cost of sales" and "Selling, general and administrative
expenses" in the consolidated statement of profit or loss.
Carrying amount(Millions of yen)

Goodwill

Balance as of April 1, 2020

161,674

Intangible
assetsrecognizedthroughbusiness
combination

Development
assets132,965

19,960Software30,991Others

9,109

Total

354,701

Balance as of March 31,
170,865
131,891
22,81929,441
8,431
363,449
2021
Balance as of March 31,
191,619
136,226
25,38731,195
11,453395,8822022(Notes) 1. Intangible assets recognized through business combination include customer-related assets andtechnology-related assets.
2. Development assets in progress included in development assets amounts to 8,162 million yen and 7,536
million yen as of the end of the fiscal years ended March 31, 2021 and 2022, respectively. Software in
progress included in software amounts to 6,164 million yen and 9,808 million yen as of the end of the fiscal
years ended March 31, 2021 and 2022, respectively.

― 40 ―

(2) Impairment testing of goodwill and intangible assets with an indefinite useful life
Toyota Industries performs, with respect to goodwill, impairment testing as necessary during each period or in casethere is a sign of impairment. The recoverable value in impairment testing is calculated based on value in use.
Value in use is calculated by discounting the estimated amount of cash flows based on the business plan for the next
five years that has been primarily approved by the management in present value. The estimation of cash flows isbased on the assumption that cash flows of more than five years will increase at a certain growth rate. The growth rateis determined by referencing the long-term expected growth rate of the market in which cash-generating units belong(about 0 to 3%). The discount rate is calculated based on the weighted-average capital cost before tax of cashgenerating units (about 7 to 10%).
Toyota Industries concluded that even if there were reasonably possible changes in key assumptions used in the
impairment assessment, it is unlikely that a material impairment would arise.
With respect to the balance of goodwill as of the end of the fiscal years ended March 31, 2021 and 2022, major items
include: goodwill recognized in conjunction with the acquisition of the Cascade Corporation Group in the Materials
Handling Equipment Segment; goodwill recognized in conjunction with the business transfer of Toyota Industries
Commercial Finance, Inc. (TICF); goodwill recognized in conjunction with the acquisition of the Vanderlande Group;
goodwill recognized in conjunction with the acquisition of the Bastian Group; and goodwill recognized in conjunction
with the acquisition of the Uster Technologies AG Group in the Textile Machinery Segment. Goodwill recognized inconjunction with the acquisition of the Cascade Corporation Group is allocated to the Materials Handling Equipment
Business which is functioning as the cash-generating unit and amounts to 27,026 million yen and 29,903 million yen asof the end of the fiscal years ended March 31, 2021 and 2022, respectively. Goodwill recognized in conjunction with thebusiness transfer of TICF is allocated to the Materials Handling Equipment Business in North America which isfunctioning as the cash-generating unit and amounts to 25,968 million yen and 28,708 million yen as of the end of the
fiscal years ended March 31, 2021 and 2022, respectively. Goodwill recognized in conjunction with the acquisition of
the Vanderlande Group is allocated to the Material Handling Equipment Business which is functioning as the cashgenerating unit and amounts to 64,440 million yen and 67,852 million yen as of the end of the fiscal years ended March
31, 2021 and 2022, respectively. Goodwill recognized in conjunction with the acquisition of the Bastian Group isallocated to the Material Handling Equipment Business which is functioning as the cash-generating unit and amounts to
14,787 million yen and 15,752 million yen as of the end of the fiscal years ended March 31, 2021 and 2022,
respectively. Goodwill recognized in conjunction with the acquisition of the Uster Technologies AG Group is allocated to
Uster Technologies AG group and amounts to 16,881 million yen and 19,108 million yen as of the end of the fiscal
years ended March 31, 2021 and 2022, respectively.
Intangible assets with an indefinite useful life included in intangible assets recognized on business combinations
amounted to 37,377 million yen and 42,134 million yen at the end of the fiscal years ended March 31, 2021 and 2022,
respectively. These assets are primarily related to trademark recognized in connection with the acquisition of the
Vanderlande Group in the Materials Handling Equipment Segment. The Toyota Industries Group determined the usefullife to be indefinite because the trademark will survive for as long as the business continues. Intangible assets with anindefinite useful life recognized in connection with the acquisition of the Vanderlande Group were allocated on the basisthat the Vanderlande Group is a group of cash-generating units and amounted to 23,493 million yen and 24,742 million
yen at the end of the fiscal years ended March 31, 2021 and 2022, respectively.

― 41 ―

11. Investments Accounted for by the Equity Method
There are no affiliates of individual significance in the fiscal years ended March 31, 2021 and 2022. The carrying
amounts of investments in affiliates consist of the following.
(Millions of yen)
FY2021(As of March 31, 2021)
Total carrying amountFY2022(As of March 31, 2022)

16,812

21,337

The amounts of equity in comprehensive income of affiliates of no individual significance consist of the following.
(Millions of yen)
FY2021(April 1, 2020 - March 31, 2021)
Amount of equity in profit

FY2022(April 1, 2021 - March 31, 2022)

1,682

4,397

Amount of equity in other comprehensive
income605

1,122

Amount of equity in comprehensive income

2,287

5,519

12. Trade Payables and Other Payables
Trade payables and other payables consist of the following.
(Millions of yen)
FY2021(As of March 31, 2021)

FY2022(As of March 31, 2022)

Trade notes and accounts payable

322,811

378,324

Accounts payable - other

38,26645,279Contract liabilities

97,830140,730

Others154,671

181,218

Total

613,579

745,553

Trade payables and other payables are primarily financial liabilities measured at amortized cost. "Others" mainly
includes short-term employee debt and accrued expenses.
Breakdown by period until payment or settlement consists of the following.
(Millions of yen)
FY2021(As of March 31, 2021)
Due within 12 months

FY2022(As of March 31, 2022)

613,577

Due after 12 months
Total― 42 ―

745,5521

0613,579

745,553

13. Corporate Bonds and Loans
Corporate bonds and loans consist of the following.
(Millions of yen)
Average
FY2021
FY2022interest rate
(As of March 31, 2021) (As of March 31, 2022)(%)

Repaymentdue

Short-term loans

56,830117,066

0.93－

Commercial paper

18,80965,203－－Long-term loans repaid within one year

176,903

118,456

1.07－

Corporate bonds redeemed within
one year

182,694

167,777－－

Long-term loans

506,127

645,484

0.50

April 2023 August 2039

Corporate bonds

403,996276,526－－

1,345,363

1,390,515

－

－

Total
(Note)

The average interest rate reflects the weighted-average interest rate against the balance at the end of the
fiscal year ended March 31, 2022. Rates for corporate bonds are indicated in the summary of issuance termsof corporate bonds.

Corporate bonds and loans are financial liabilities measured at amortized cost.

― 43 ―

The summary of issuance terms of corporate bonds consists of the following.
(Millions of yen)Company
nameName

FY2021
FY2022
Interest(As of March 31, (As of March 31,
rate Collateral Issuance date Maturity date
2021)
2022)
(%)

The
Company

19th issuance ofcorporate bonds
without collateral

29,994－－The
Company

22nd issuance ofcorporate bonds
without collateral

9,994

9,998
(9,998)

0.821

None

November 30, September 20,
2012
2022

The
Company

24th issuance ofcorporate bonds
without collateral

9,992

9,995

0.797

None

September 5,2013

June 20,
2023

The
Company

26th issuance ofcorporate bonds
without collateral

9,997

－

－

－

－

－

The
Company

28th issuance ofcorporate bonds
without collateral

9,994

9,998
(9,998)

0.318

None

May 29,2015

June 20,
2022

The
Company

29th issuance ofcorporate bonds
without collateral

19,964

19,971

0.080

None

July 15,2016

June 19,
2026

The
Company

32nd issuance ofcorporate bonds
without collateral

19,98819,997(19,997)

0.050

None

April 27,2017

June 20,
2022

The
Company

33rd issuance ofcorporate bonds
without collateral

9,986

9,990

0.150

None

April 27,2017

June 20,
2024

3.235

None

March 16,2018

March 16,
2023

3.566

None

March 16,2018

March 16,
2028

－

－

－

The
CompanyThe
Company

1st issuance ofU.S. dollar61,127
55,219denominated[USD499 million][USD498 million]
senior unsecured(61,127)notes
2nd issuance ofU.S. dollar55,079
60,959denominated[USD497 million] [USD498 million]
senior unsecured
notes

The
Company

34th issuance ofcorporate bonds
without collateral

29,995－－The
Company

35th issuance ofcorporate bonds
without collateral

9,986

9,992

0.080

The
Company

3rd issuance ofU.S. dollar66,293
denominated[USD598 million]
senior unsecured
notes

－

－

The
Company

36th issuance ofcorporate bonds
without collateral

29,9780.001

29,962― 44 ―

－

None

－

－

November 28, September 20,
2018
2023

－

－

－

None

July 9,2020

June 20,2023

(Millions of yen)Company
nameName

FY2021
FY2022
Interest(As of March 31, (As of March 31,
rate Collateral Issuance date Maturity date
2021)
2022)
(%)

ToyotaIndustries
Medium-term
FinancenotesInternationalAB

73,87989,594[EUR540 million][EUR690 million](20,507)

0.000
－
0.725

None

September 22, September 22,
2017 －
2022 －
February 14, February 12,
2022
2027

ToyotaIndustries
Medium-term
FinancenotesInternational
AB

9,261
8,883
[SEK700 million][SEK700 million](6,615)

0.399
－
1.400

None

November 15,
November 15,
2022 －
2017
November 15,
2024

ToyotaIndustries
Medium-term
FinancenotesInternational
AB

6,089
[USD55 million]

6,731[USD55 million]

1.666

None

September 27, September 27,
2019
2024

ToyotaIndustries
Medium-term
FinancenotesInternational
AB

2,530
[AUD30 million]

2,760[AUD30 million]

1.830

None

July 6,
2020

July 6,2027

113,141

109,661[USD1,021
million][USD896 million]

None

May 18,2017 －
June 11,2020

May 18,2022 －
August 29,
2025

－

－

－

ToyotaIndustries
Medium-term
Commercial notes
Finance, Inc.

Total

－

586,691(39,531)444,303(167,777)

0.841
－
3.609

－

(Notes) 1. The figure in parentheses in the "FY2022" is the amount to be redeemed within one year.
2. "Interest rate" indicates the interest rate against the balance at the end of the fiscal year ended March 31,
2022.
3. "Collateral" indicates any collateral associated with the balance at the end of the fiscal year ended March
31, 2022.
4. "Issuance date" indicates the issuance date associated with the balance at the end of the fiscal year ended
March 31, 2022.
5. "Maturity date" indicates the maturity date associated with the balance at the end of the fiscal year ended
March 31, 2022.

― 45 ―

14. Other Financial Liabilities
Other financial liabilities consist of the following.
(Millions of yen)
FY2021(As of March 31, 2021)
Lease liabilities

FY2022(As of March 31, 2022)

123,653

132,735

Derivative liabilities

7,889

8,905

Deposits payable

35,49536,505

Total

167,037

178,147

Current liabilities

78,67382,909Non-current liabilities

88,364

95,237

Total

167,037

178,147

Deposits payable is categorized as financial liabilities measured at amortized cost and derivative liabilities are
categorized as financial liabilities measured at fair value through profit or loss (excluding items for which hedge
accounting is applied).
15. Assets Pledged as Collateral and Secured Liabilities
Assets pledged as collateral consist of the following.
(Millions of yen)
FY2021(As of March 31, 2021)

FY2022(As of March 31, 2022)

Trade receivables and other receivables

49,593

2,895

Inventories

3,010

3,501

Property, plant and equipment

1,259

5

Investment securities

181,404

201,650

Total

235,267

208,051

Secured liabilities consist of the following.
Security interest may be exercised in case there is non-fulfillment of a loan agreement.
(Millions of yen)
FY2021(As of March 31, 2021)

FY2022(As of March 31, 2022)

Short-term loans

4,073

Long-term loans

41,594－

Others32,59432,943

Total

78,26236,445(Note)"Others" mainly includes Deposits received from employees.

― 46 ―

3,501

16. Provisions
Provisions are recorded in current liabilities and non-current liabilities on the consolidated statement of financial
position.
Increase (decrease) of provisions in the fiscal years ended March 31, 2021 and 2022 consist of the following.
(Millions of yen)

10,611

Asset retirement
obligation
1,968

5,485

18,065

Increase due to provisions

13,096172

3,524

16,793

Decrease due to intended use

Warranty provision
Balance as of April 1, 2020

OthersTotal(9,657)(109)(1,546)(11,313)

Decrease due to reversal

(580)

－

(97)

(678)

Interest expenses based on discountcalculation, foreign currencytranslation difference and others

343

26

332

702

Balance as of March 31, 2021

13,813

2,057

7,698

23,569

Increase due to provisions

14,065160

3,071

17,297

Decrease due to intended use(11,807)(36)(1,561)(13,405)

Decrease due to reversal

(380)

－

(1,073)(1,454)

Interest expenses based on discountcalculation, foreign currencytranslation difference and others

504

105

607

1,217

16,194

2,288

8,741

27,225

Balance as of March 31, 2022

The warranty provision is recorded by recognizing the amount of expected expense payments required for future
repairs. It is expected in many cases that a repair or a payment is made within a year, while repairs or payments forsome items are made over a longer period of time because customers take longer to physically return defective
products.
Asset retirement obligations are accounted for by recognizing provision for asset demolition/disposal expenses,
expenses for restoring an asset to its original condition and payments arising as a result of using assets as well as byadding to the acquisition cost of the respective assets (property, plant and equipment, such as buildings). The
respective assets are depreciated over the number of years of depreciation as indicated "3. Significant Accounting
Policies".
"Others" mainly includes provision for litigation.

― 47 ―

17. Employee Benefits
In regard to total expenses for employee benefits plans including other than post-employment plans, refer to "21.
Breakdown of Expenses by Nature".
(1) Overview of post-employment plans adopted
To provide for employee retirement benefits, Toyota Industries has adopted pension and lump-sum payment defined
benefit plans as well as defined contribution pension plans. The amount of benefits under the defined benefit plans isdetermined based on points earned by employees based on factors such as the number of years of service and grades,
the employee's final salary, the number of years of service and other terms. Furthermore, to provide for future benefits,
Toyota Industries makes contributions based on actuarial calculations using an estimated rate of wages and salaries.
The defined benefit pension plan, in compliance with relevant laws and regulations and with the consent of theemployees, sets the pension agreement stipulating the policy around eligibility, what is provided through the plan andthe contributions to be made by the Company. The agreement is approved by the Minister of Health, Labour, andWelfare. Under the agreement, the Company enters into a contract with an entrusted pension management institution
on the payment of contributions as well as the management of plan assets to operate the pension plan. The pension
management institution has a fiduciary responsibility to manage the plan assets in accordance with the agreement.
Furthermore, a retirement benefit trust is set for some plans in Japan. Some subsidiaries outside Japan also adopt awide range of defined benefit plans in accordance with local laws and regulations.
(2) Defined benefit plans
The defined benefit plans related amounts recognized on the consolidated statement of financial position consists ofthe following.
(Millions of yen)
FY2021(As of March 31, 2021)

FY2022(As of March 31, 2022)

Retirement benefit obligations

310,436

305,449

Fair value of plan assets

256,953

273,001

Difference

53,48232,447

Effect of asset ceiling

17,42021,820Net defined benefit assets

33,99737,408Net defined benefit liabilities

104,900

91,677(Note)

Some plan assets offer availability of economic benefit through a refund based on which the asset ceiling is
calculated. The transition of the asset ceiling from the balance at the beginning of the period to the balance atthe end of the period is as indicated above.

― 48 ―

(i) Fluctuations of present value of defined benefit obligations(Millions of yen)Japan

Outside Japan

FY2021(April 1, 2020 March 31, 2021)

FY2022(April 1, 2021 March 31, 2022)

FY2021(April 1, 2020 March 31, 2021)

FY2022(April 1, 2021 March 31, 2022)

172,798

188,288

106,849

122,147

Service cost

9,423

9,636

2,539

2,310

Interest cost

1,083

1,176

2,363

2,525

5,910

(1,007)

(439)

(952)

(451)

(3,444)

3,864(10,702)438

139(1,242)(2,627)

Prior service cost

4,483

(271)

－

(8)

Retirement benefits paid

(5,414)(9,005)(3,325)(3,515)

Effect of foreign currencytranslation－－

11,385

8,658

Balance at beginning of period

Remeasurements
Actuarial gains (losses) arisingfrom changes in demographic
assumptions
Actuarial gains (losses) arisingfrom changes in financial
assumptions
Difference arising from revised
results

OthersBalance at end of period

17

42

150

2,057

188,288

185,555

122,147

119,893

The weighted-average duration associated with Toyota Industries' defined benefit obligation is 14.7 years in Japan and18.8 years outside Japan for the fiscal year ended March 31, 2021 and 14.4 years in Japan and 17.8 years outside
Japan for the fiscal year ended March 31, 2022.
(ii) Fluctuations of fair value of plan assets(Millions of yen)
Japan

Balance at beginning of period
Interest income

Outside Japan

FY2021(April 1, 2020 March 31, 2021)

FY2022(April 1, 2021 March 31, 2022)

FY2021(April 1, 2020 March 31, 2021)

FY2022(April 1, 2021 March 31, 2022)

141,378

184,72260,12072,230

972

1,227

1,445

1,565

Revenue associated with plan
assets (excluding interest
income above)

41,700

3,906

1,955

(1,791)

Employer contributions

4,082

4,936

1,695

2,101

Return to employer
Benefit payment
Exchange impact
OthersBalance at end of period

－

－

－

－

(3,382)(4,179)(2,753)(2,949)

－

－

9,609

9,158

(28)

(15)

158

2,086

184,722

190,598

72,23082,403The projected amount of contributions to plan assets in the fiscal year ending March 31, 2023 is 7,101 million yen.

― 49 ―

(iii) Classes of plan asset
The classes of plan assets for the fiscal year ended March 31, 2021 consisted of the following.
(Millions of yen)Japan
Items with Items with no
publishedpublishedvalue in an value in an
active market active market
Stock50,164

Jointly managed trust (Stock)

－

Bonds

－

Jointly managed trust (Bonds)－

Life insurance general account

－
6,892

Others－32,154

Outside Japan

Total

Items with Items with no
publishedpublishedvalue in an value in an
active market active market

Total

50,164

11,036－－
11,077

11,03632,154

318

318

－

12,983

12,98342,41842,418－

12,635

12,635

22,696

22,696

－

1,868

1,868

30,07836,97021,048

1,579

22,628

11,077

Total plan assets
57,056
127,665
184,72232,08540,14572,230(Notes) 1. "Stock" includes 49,944 million yen in retirement benefits trusts established for the lump-sum retirement
benefits plans.
2. "Others" includes cash and deposits, etc.
The classes of plan assets for the fiscal year ended March 31, 2022 consisted of the following.
(Millions of yen)Japan
Items with Items with no
publishedpublishedvalue in an value in an
active market active market
Stock53,660－30,409Items with Items with no
publishedpublishedvalue in an value in an
active market active market

Total

23,050－－7,184

23,05030,409

420

420

－

12,694

12,69454,61554,615－

18,66818,66825,024

－

3,725

3,725

26,467

15,436

1,643

17,079

－

Bonds

－

Jointly managed trust (Bonds)－－

25,024

6,971

19,495

OthersTotal

53,660

Jointly managed trust (Stock)

Life insurance general accountOutside Japan

7,184

Total plan assets
60,631
129,966
190,598
38,48743,91682,403(Notes) 1. "Stock" includes 53,432 million yen in retirement benefits trusts established for the lump-sum retirement
benefits plans.
2. "Others" includes cash and deposits, etc.
Toyota Industries' basic policy for managing plan assets aims to secure profits required over the long term, within thescope of acceptable risks, to meet future benefit payment requirements under the defined benefit corporate pension
contract.
The targeted earnings rate is the earnings rate necessary to maintain the sound operation of the defined benefit
corporate pension into the future, which specifically means that the earnings rate exceeds the expected rate whichbecomes the basis of calculation of future contribution under pension finance.
Both the Company and the institution entrusted with management are to confirm that the asset allocation for achieving
management's target is consistent with the basic investment policy and that the asset allocation ratios are revised as
required.
The basic policy may be amended in accordance with changes to the conditions of the Company and the systems andthe environment surrounding the Company.

― 50 ―

(iv) Actuarial assumptions
Important actuarial assumptions (weighted average) used for the calculation of the present value of the defined benefit
obligation consist of the following.
Japan

Outside Japan

FY2021
FY2022
FY2021
FY2022(As of March 31, 2021) (As of March 31, 2022) (As of March 31, 2021) (As of March 31, 2022)
Discount rate

0.67%

0.83%

2.25%

2.95%

In cases where the discount rate fluctuates at the ratios indicated below, assuming there are no changes to otherassumptions, the defined benefit obligation as of the end of the fiscal year ended March 31, 2021 and 2022 would havebeen impacted as follows. While the sensitivity analysis assumes that there are no changes in other assumptions, it ispossible that changes in other assumptions could impact the sensitivity analysis.
(Millions of yen)
FY2021(As of March 31, 2021)
Japan
Discount rate
Outside Japan

FY2022(As of March 31, 2022)

0.5% increase(10,773)(10,316)

0.5% decrease

11,852

11,453

0.5% increase(9,434)(7,963)

0.5% decrease

9,671

8,539

(3) Defined contribution pension plan
The amount of contributions paid for the defined contribution pension plan for the fiscal years ended March 31, 2021
and 2022 were 8,375 million yen and 13,007 million yen, respectively. Welfare insurance premiums are accounted forin the defined contribution pension plan and included in employee benefits expenses.
(4) Multi-employer plan
Certain subsidiaries in Japan participate in corporate pension funds of a multi-employer plan. Because the plan is amulti-employer-type defined benefit plan and the amount of pension investment corresponding to the contribution by
one's own company cannot be rationally calculated, the amount of contribution required is accounted for as retirement
benefit expenses.
The amount of the contribution required in each fiscal year consists of the following.
(Millions of yen)
FY2021
FY2022(April 1, 2020 - March 31, 2021) (April 1, 2021 - March 31, 2022)
Contributions

59

58

The projected contribution in the fiscal year ending March 31, 2023 is 58 million yen.
The funded and unfunded status, on an aggregation basis of the Group's entire plans are as follows.
(Millions of yen)
FY2021(As of March 31, 2021)
Plan assets
Actuarial liability based on pension plan financecalculation and minimum actuarial reserve
Funded/(Unfunded) amountFY2022(As of March 31, 2022)

38,77343,54547,61948,183(8,846)(4,637)

The rate of contributions of Toyota Industries within the entire plan consists of the following.
FY2021(As of March 31, 2021)
Rate of contribution

5.63%― 51 ―FY2022(As of March 31, 2022)
5.60%

18. Equity and Other Equity Items(1) Capital stock and capital surplus
The Companies Act in Japan stipulates that no less than half of the payment or performance for issuing equity shall beincorporated into capital stock, and the remaining amount shall be incorporated into capital surplus, which is included incapital reserve. Moreover, the capital reserve may be incorporated into capital stock by a resolution of the General
Meeting of Shareholders under the Companies Act.
The number of shares authorized in the fiscal years ended March 31, 2021 and 2022 is 1,100,000,000 shares,
respectively.
The breakdown of changes in the number of shares issued and fully paid consist of the following.
Number of shares(Shares)
Beginning of FY2021 (As of April 1, 2020)

325,840,640

Capital surplus(Millions of yen)

80,462

103,515－－(1,208)

325,840,640

80,462

102,307－－

81

Increase (decrease) during period
FY2021 (As of March 31, 2021)

Capital stock(Millions of yen)

Increase (decrease) during period

FY2022 (As of March 31, 2022)
325,840,640
80,462
102,388(Note) All shares issued by the Company are common stock, which has no restrictions on the content of rights and nopar value.
(2) Retained earnings
The Companies Act stipulates that one tenth of the surplus that would decrease due to the distribution of dividend of
surplus shall be accumulated as capital reserve or retained earnings until the total amount of capital reserve andretained earnings reaches one fourth of capital. Accumulated retained earnings may be appropriated to compensate forlosses. Moreover, retained earnings may be reduced by a resolution of the General Meeting of Shareholders.
In addition, the distributable amount under the Companies Act is calculated based on statutory capital surplus andretained earnings in accordance with accounting standards generally accepted in Japan, and statutory capital reserve
and legal retained earnings are excluded from the distributable amount.

― 52 ―

(3) Treasury stock
The Companies Act stipulates that treasury stock may be acquired with a resolution of the General Meeting of
Shareholders deciding the number of shares to be acquired, the total amount of the acquisition price and other matterswithin the scope of the distributable amount. Moreover, if through market transactions or tender offers, treasury stock
may be acquired by a resolution of the meeting of the Board of Directors within the scope of the requirements
stipulated by the Companies Act, in accordance to the provisions of the Articles of Incorporation.
Changes in the number and balance of treasury stock consist of the following.

Number of shares (Shares)
Beginning of FY2021 (As of April 1, 2020)

15,357,028

Increase (decrease) during period
FY2021 (As of March 31, 2021)
Increase (decrease) during period
FY2022 (As of March 31, 2022)

Amount (Millions of yen)
59,3071,834

14

15,358,862

59,321

1,924

18

15,360,786

59,339(4) Other components of equity(i) Net changes in revaluation of FVTOCI financial assets
It is the accumulated amount of net changes in revaluation of financial assets measured at fair value through othercomprehensive income.
(ii) Remeasurements of defined benefit plans
Remeasurements of defined benefit plans show the amount affected by differences between actuarial assumptions at
the beginning of the fiscal year and actual results, as well as the amount affected by changes in actuarial assumptions.
They are recognized in other comprehensive income at the time of their occurrence and immediately transferred fromother components of equity to retained earnings.
(iii) Translation adjustments of foreign operations
This shows translation adjustments arising from converting the financial statements in the functional currency of foreign
operations of Toyota Industries into those in the Japanese yen which is the presentation currency of Toyota Industries.
(iv) Cash flow hedges
This shows the accumulated amount of effective hedges among the gains and losses arising from changes in the fairvalue of hedging instruments for cash flow hedges.

― 53 ―

19. Cash Dividends(1) Dividends paid
FY2021 (April 1, 2020 - March 31, 2021)
Resolutions

Class of shares

Total dividends(Millions of yen)

Dividends per
share (Yen)

Board of Directors meeting
held on April 30, 2020

Common stock

24,838

Board of Directors meeting
held on October 29, 2020

Common stock

Record date

Effective date80

March 31, 2020

May 25, 2020

21,73370

September 30,
2020

November 26,
2020

Record date

Effective date

FY2022 (April 1, 2021 - March 31, 2022)
Resolutions

Class of shares

Total dividends(Millions of yen)

Dividends per
share (Yen)

Board of Directors meeting
held on April 28, 2021

Common stock

24,83880

March 31, 2021

May 26, 2021

Board of Directors meeting
held on October 29, 2021

Common stock

24,83880

September 30,
2021

November 26,
2021(2) Dividends with a record date in the fiscal year ended March 31, 2022 for which the effective date falls in the following
fiscal year

Resolutions

Class ofshares

Source ofdividends

Board of Directors meeting
held on April 28, 2022

Commonstock

Retainedearnings

Total dividends Dividends per(Millions of yen) share (Yen)
27,943― 54 ―

90

Record date Effective date
March 31,2022

May 26,2022

20. Revenues(1) Disaggregation of revenues
As specified in Note 4 "Segment Information," the reporting segments of the Toyota Industries consist of Automobile,
Materials Handling Equipment and Textile Machinery. Within the Automobile Segment, vehicles, engines, car airconditioning compressors and others are included due to the similarity of their trend of sales and other economic
characteristics. In addition, sales are geographically broken down according to the location of customers. The
disaggregation of sales of these sub-segments as well as sales of each reporting segment are as follows.
FY2021 (April 1, 2020 - March 31, 2021)(Millions of yen)Japan

U.S.A.

Others

Total

Vehicle88,393－－88,393Engine106,845151

32,978

139,975

78,142

86,840136,638

301,621

41,512

6,661

13,50961,683244,871

539,111

647,472

1,431,455

Textile Machinery

1,268

1,805

37,77540,850

Others53,850－472

54,322

Total

614,884

634,570

868,847

2,118,302

Revenues from contracts withcustomers

614,048569,983

797,651

1,981,682

835

64,587

71,196

136,619

Automobile

Car Air-Conditioning
Compressor
Electronics Parts
and Others

Materials Handling Equipment

Revenues from other sources (Note)(Note)

Revenues from other sources includes lease income based on IFRS 16. Revenues from other sources ismainly included in the Materials Handling Equipment Segment.

FY2022 (April 1, 2021 - March 31, 2022)(Millions of yen)Japan

U.S.A.

Others

Total

Vehicle83,463－－83,463Engine215,529408

51,700267,639

93,580100,180

162,435

356,196

61,551

8,800

15,161

85,513245,003

694,102850,329

1,789,434

Textile Machinery

1,372

2,254

65,58869,215

Others53,306－413

53,720

Total

753,808

805,746

1,145,628

2,705,183

Revenues from contracts withcustomers

752,169

735,891

1,061,155

2,549,216

1,639

69,85584,472

155,967

Automobile

Car Air-Conditioning
Compressor
Electronics Parts
and Others

Materials Handling Equipment

Revenues from other sources (Note)(Note)

Revenues from other sources includes lease income based on IFRS 16. Revenues from other sources ismainly included in the Materials Handling Equipment Segment.

― 55 ―

The Automobile Segment sells automotive-related products such as vehicles, diesel and gasoline engines, foundryparts for engines, car air-conditioning compressors, electronics components. Its primary customers include automotiverelated manufacturers in and outside Japan.
The Materials Handling Equipment Segment sells and provides maintenance for lift trucks, warehouse trucks, aerial
work platforms and other products as well as provides services including the construction of automated storage andretrieval systems, and logistics solutions. Its primary customers include users and dealers in and outside Japan.
The Textile Machinery Segment sells weaving machinery, spinning machinery, instruments for yarn testing and cotton
classing, and other products. Its primary customers include dealers in and outside Japan.
Sales derived from the sale of these products accounted for in accordance with Note 3 "Significant Accounting
Policies."
The amount of variable consideration, such as net of discounts, incentives to distributors and other items included inrevenues, is immaterial. In addition, the amount of promised consideration is generally received within one year anddoes not include a significant financial component.
(2) Contract balances
Receivables from contracts with customers, contract assets and contract liabilities consist of the following.
(Millions of yen)
Receivables from contracts
with customers
Balance of as April 1,
2020
Balance of as March 31,
2021
Balance of as March 31,
2022

Contract assets

Contract liabilities

675,118

26,86682,247

762,446

37,952

97,830859,136

51,170140,730

Receivables from contracts with customers and Contract assets are included in "Trade receivables and otherreceivables" and Contract liabilities are included in "Trade payables and other payables" in the consolidated statementof financial position.
Revenue recognized in the years ended March 31, 2021 and 2022, which was included in the balance at beginning of
period of contract liabilities, amounted to 81,917 million yen and 96,525 million yen, respectively. During the fiscal year
ended March 31, 2022, the profit amount recognized from performance obligations satisfied (or partially satisfied) in
previous fiscal years was immaterial.
(3) Transaction price allocated to remaining performance obligations
Unsatisfied obligations of contracts whose original service period is over one year as of end of reporting period are as
follows.
(Millions of yen)
FY2021(As of March 31, 2021)
Provision of services

518,959

FY2022(As of March 31, 2022)
558,092

The percentage expected to be recognized as revenue in the years ended March 31, 2022 and 2023 is respectively
36% and 43% of transaction price allocated to unsatisfied contracts at the end of the year ended March 31, 2021 and2022.

― 56 ―

21. Breakdown of Expenses by Nature
Principal items of cost of sales and selling, general and administrative expenses consist of the following.
(Millions of yen)
FY2021(April 1, 2020 - March 31, 2021)

FY2022(April 1, 2021 - March 31, 2022)

Purchase of raw materials and goods

917,223

1,293,572

Employee benefit expenses

577,257

667,382

Depreciation and amortization

209,150

223,012

22. Research and Development Expenses
Research and development expenses included in cost of sales and selling, general and administrative expenses consistof the following.
(Millions of yen)
FY2021(April 1, 2020 - March 31, 2021)
Research and development expenses

76,105

FY2022(April 1, 2021 - March 31, 2022)
86,192

23. Other income and Expenses
Other income consist of the following.
(Millions of yen)
FY2021(April 1, 2020 - March 31, 2021)
Rental fees for fixed assets

909

Gain on sales of fixed assets

FY2022(April 1, 2021 - March 31, 2022)
900

757

833

Others17,28919,209Total

18,956

20,942Other expenses consist of the following.
(Millions of yen)
FY2021(April 1, 2020 - March 31, 2021)

FY2022(April 1, 2021 - March 31, 2022)

Loss on disposal of fixed assets

2,646

2,196

Loss on sales of fixed assets

498

133

Depreciation and amortization

689

724

Others12,722

11,337

Total

16,555

14,391― 57 ―

24. Financial Income and Financial Expenses
Financial income consists of the following.
(Millions of yen)
FY2021(April 1, 2020 - March 31, 2021)
Interest income
Financial assets measured atamortized cost
Financial assets measured atfair value through profit or loss
OthersDividends income
Financial assets measured at fair value
through other comprehensive income
Gains on foreign currency translation

FY2022(April 1, 2021 - March 31, 2022)

1,189

1,607

376

244

－

－

70,86382,351－

3,476

Others

1,569

2,262

Total

73,99989,941

Financial expenses consist of the following.
(Millions of yen)
FY2021(April 1, 2020 - March 31, 2021)
Interest expenses
Financial liabilities measured atamortized cost
Financial liabilities measured atfair value through profit or loss
Others

FY2022(April 1, 2021 - March 31, 2022)

3,535

2,742

1,324

1,393

569

733

Losses on foreign currency translation

2,547

－

Others

1,852

2,414

Total

9,830

7,282

― 58 ―

25. Income Taxes(1) Income tax expenses
Income tax expenses consist of the following.
(Millions of yen)
FY2021(April 1, 2020 - March 31, 2021)

FY2022(April 1, 2021 - March 31, 2022)

Current tax expenses

45,79260,329Deferred tax expenses(3,216)

443

Total

42,576

60,773(Note)

Deferred tax expenses is due primarily to taxable temporary differences that arose and reversed for the fiscal
year ended March 31, 2021, and the fiscal year ended March 31, 2022.

The difference between the statutory effective tax rate and the actual tax rate consist of the following.
(%)
FY2021(April 1, 2020 - March 31, 2021)

FY2022(April 1, 2021 - March 31, 2022)

30.9

30.9

(5.2)

(4.6)

(0.1)

0.2

(0.3)

(0.6)

(2.2)

(1.2)

23.1

24.7

Statutory effective tax rate
Dividends income and others permanently
not recognized as taxable income
Effect of reassessment on recoverability ofdeferred tax assets
Share of profit of investments accounted forby the equity method
OthersActual tax rate
(Note)

Toyota Industries has mainly had to pay income, inhabitants and enterprise taxes, and the statutory effective
tax rate calculated based on these taxes was 30.9% for the fiscal years ended March 31, 2021 and 2022.
Subsidiaries outside Japan, however, pay income and other taxes depending on their locations.

― 59 ―

(2) Deferred tax assets and deferred tax liabilities
Deferred tax assets and deferred tax liabilities consist of the following.
FY2021 (April 1, 2020 - March 31, 2021)(Millions of yen)
Balance at
beginning of
periodDeferred tax assets
Net defined benefit liabilities

Recognized in
Recognized inotherBalance at
profit or loss comprehensive end of period
income30,4293,016(3,515)29,930Allowance for compensated absences
Allowance for bonuses

8,395
7,489

104
13

－
－

8,499
7,502

Net operating loss carry-forwards for tax purposes
Accrued expenses

10,402
6,845(1,788)
1,986

－
－

8,613
8,832

Inventories
Others3,514
36,035

8
10,176

－
153

3,522
46,365

Total deferred tax assets

103,113

13,516(3,362)

113,267

510,802－

288,763799,566

64,25254,061

2,114
7,015

－
3,287

66,36664,363

629,1169,129

292,050

930,296(526,002)

4,387(295,413)(817,029)

Deferred tax liabilities
Financial assets at fair value throughother comprehensive income
Depreciation
OthersTotal deferred tax liabilities
Net amountFY2022 (April 1, 2021 - March 31, 2022)(Millions of yen)
Balance at
beginning of
periodRecognized in
Recognized inotherBalance at
profit or loss comprehensive end of period
incomeDeferred tax assets
Net defined benefit liabilities
Allowance for compensated absences

29,930
8,499

3,819
457

(2,012)－

31,737
8,957

Allowance for bonuses
Net operating loss carry-forwards for tax purposes

7,502
8,613

830
(4,040)

－
－

8,333
4,573

Accrued expenses
Inventories

8,832
3,522

3,414
1,201

12,247
4,724

46,365113,267(5,406)277－－
32(1,979)40,991
111,564

799,566－

208,005

1,007,571

66,366

2,644

69,01164,363930,296

8,996
11,641－
353
208,359

73,714
1,150,297(817,029)(11,364)(210,339)(1,038,732)

OthersTotal deferred tax assets
Deferred tax liabilities
Financial assets at fair value throughother comprehensive income
Depreciation
OthersTotal deferred tax liabilities
Net amount― 60 ―

Deferred tax assets and deferred tax liabilities on the consolidated statement of financial position consist of thefollowing.
(Millions of yen)
FY2021(As of March 31, 2021)
Deferred tax assets

FY2022(As of March 31, 2022)

37,61539,908Deferred tax liabilities

854,644

1,078,641

Net amount(817,029)(1,038,732)

Loss carry-forwards, unused tax credits and future deductible temporary differences which are not recognized asdeferred tax assets consist of the following.
(Millions of yen)
FY2021(As of March 31, 2021)

FY2022(As of March 31, 2022)

Net operating loss carry-forwards for tax purposes

12,85321,071

Unused tax credits

1,206

1,301

Deductible temporary differences

2,248

2,895

Total

16,30825,268Amount and the time limit for a loss carry-forwards which is not recognized as deferred tax assets consist of thefollowing.
(Millions of yen)
FY2021(As of March 31, 2021)

FY2022(As of March 31, 2022)

First year－

793

Second year

596

277

Third year－

167

Fourth year

29

83

Beyond fifth year

12,227

19,749

Total

12,85321,071

The total amount of taxable temporary differences associated with investments in subsidiaries not recognized asdeferred tax liabilities as of the end of the fiscal year ended March 31, 2021 and 2022, was 586,848 million yen and742,620 million yen, respectively.
Toyota Industries has not recognized deferred tax liabilities related to those temporary differences because it considers
that it can control the timing to resolve temporary differences, and they are not likely to be resolved within theforeseeable period.

― 61 ―

26. Earnings per Share(1) Basis of calculation for basic earnings per share(i) Profit attributable to owners of common stock of the parent(Millions of yen)
FY2021
FY2022(April 1, 2020 - March 31, 2021) (April 1, 2021 - March 31, 2022)
Profit attributable to owners of common stockof the parent

136,700

180,306(ii) Weighted-average number of common stock(Thousands)
FY2021
FY2022(April 1, 2020 - March 31, 2021) (April 1, 2021 - March 31, 2022)
Weighted-average number of common stock

310,482

310,480(2) Basis of calculation for diluted earnings per share
Diluted earnings per share is the same amount with basic earnings per share because there are no dilutive shares.

― 62 ―

27. Other Comprehensive Income(Millions of yen)
FY2021
FY2022(April 1, 2020 - March 31, 2021) (April 1, 2021 - March 31, 2022)
Net changes in revaluation of FVTOCI
financial assets
Amount arising during the period
Before tax effect adjustment

931,017931,017673,906
673,906

Tax effect
Net changes in revaluation of FVTOCI
financial assets
Remeasurements of defined benefit plans(288,763)(208,005)

642,254465,900

Amount arising during the period
Before tax effect adjustment

19,241
19,241

16,30816,308Tax effectRemeasurements of defined benefit plans(6,803)
12,438(2,365)
13,943

Translation adjustments of foreign operations
Amount arising during the period

57,21084,380－57,210－84,380Recycling
Translation adjustments of foreign operations
Cash flow hedges
Amount arising during the period

989(4,989)Recycling
Before tax effect adjustment

(987)
1

6,083
1,094

Tax effectCash flow hedges

153
154

32
1,126

605

1,122

－

－

605

1,122

712,662

566,473

Share of other comprehensive income of affiliates
accounted for by equity method
Amount arising during the period
Recycling
Share of other comprehensive income ofaffiliates accounted for by equity method
Total other comprehensive income
28. Important Non-Cash Transactions

Important non-cash transactions (investments and financial transactions which do not use cash and cash equivalents)
are presented in Note 30 "Leases" for the increase in right-of-use assets.

― 63 ―

29. Financial Instruments(1) Capital management
Toyota Industries' financial policy is to ensure sufficient financing and liquidity for its business activities and to maintainstrong financial position. Through the use of such current assets as cash and cash equivalents and short-term
investments, as well as cash flows from operating activities, issuance of corporate bonds and loans from financial
institutions, Toyota Industries believes that it will be able to provide sufficient funds for the working capital necessary to
expand existing businesses and develop new projects. The Company defines equity capital as the amount of share ofequity attributable to owners of the parent excluding the subscription rights to shares.
The Company is not subject to external capital controls as of March 31, 2022.
(2) Matters concerning risk management(i) Risk management policy
Toyota Industries is exposed to financial risks related to its marketing activities (credit risk, liquidity risk, market risk,etc.). These risks are managed, based on the treasury policy for avoiding or reducing the effects of such risks.
The Company uses derivatives to avoid the risks explained below and does not engage in speculative transactions.
i) Credit risk
The main receivables of Toyota Industries such as accounts receivable, lease investment assets and loans
receivable related to the sales financing business have credit risk (risk concerning non-performance of an agreementby the counterparty). In accordance with internal rules including the treasury policy, Toyota Industries strives topromptly identify and reduce concerns about collection due to a deterioration in the financial conditions and others of
its main counterparties by regularly monitoring their situation based on their financial statements, ratings and others,
and conducting due date management and balance management. Collection risk of lease investment assets is
minimal because their ownership is not transferred and due date management and balance management are
conducted. Toyota Industries has no significant concentrations of credit risk with any counterparty.
When using derivative transactions, Toyota Industries mainly deals with only financial institutions evaluated as highly
creditworthy by rating agencies to mitigate the counterparty risk.
Regarding accounts receivable, lease investment assets and loans receivable related to the sales financing business,
if all or part of them cannot be collected or are deemed to be extremely difficult to collect, they are regarded as nonperforming.
The total carrying amount of financial assets represents the maximum exposure to credit risk.
(Measuring expected credit loss for accounts receivable and lease investment assets)
Because there is no significant financing component in accounts receivable, the loss evaluation allowance iscalculated as lifetime expected credit losses until collection of accounts receivable. For lease investment assets,
the loss evaluation allowance is calculated as lifetime expected credit losses until collection of lease investment
assets. With regard to accounts receivable and lease investment assets of debtors who have no significant
problems in their business conditions, the expected credit loss rate is measured collectively, taking into accountthe past track record of bad debts and other factors. If there are significant effects of changes in economic andother conditions, the loan loss provision ratio based on the past track record of bad debts will be adjusted andreflected in the forecast of present and future economic situations.

― 64 ―

(Measuring expected credit loss for loans receivable related to the sales financing business)
If credit risk has not increased significantly since initial recognition, the loss evaluation allowance for loans
receivable related to the sales financing business is calculated as of the end of the fiscal year by collectively
estimating the expected credit loss rate for the following 12 months based on the past track record of bad debts
and other factors. If there are significant effects of changes in economic and other conditions, the loan loss
provision ratio based on the past track record of bad debts will be adjusted and reflected in the forecast of present
and future economic situations. On the other hand, if credit risk has increased significantly as of the end of the
fiscal year since the initial recognition, the loss evaluation allowance for financial instruments is calculated byindividually estimating the lifetime expected credit losses of collecting financial instruments based on the past trackrecord of bad debts and the collectible amount in the future among other factors. Assets that are regarded as nonperforming are recorded as credit impaired financial assets.
Expected credit loss of accounts receivable and lease investment assets for which simplified approaches are appliedconsist of the following.
FY2021 (As of March 31, 2021)(Millions of yen)
Before due dateWithin 30 days
after due date

Over 30 days but
within 90 days
after due date

0.3%

1.2%

9.6%

Expected credit loss
rate

Over 90 days
after due date
48.1%

Total

－

Accounts receivableand lease investment
assets790,060

28,174

10,522

9,824

838,582

Lifetime expected credit
losses

2,064

331

1,009

4,727

8,133

FY2022 (As of March 31, 2022)(Millions of yen)

Expected credit loss
rate

Before due dateWithin 30 days
after due date

Over 30 days but
within 90 days
after due date

Over 90 days
after due date

0.5%

0.9%

5.4%

38.4%

Total

－

Accounts receivableand lease investment
assets895,434

33,836

19,031

13,340961,642

Lifetime expected credit
losses

4,640

320

1,024

5,122

11,108Among financial assets, the general approach is applied mainly to loans receivable related to the sales financing
business. The carrying amount of loans receivable related to the sales financing business, categorized by credit risk
for its measurement, consists of the following.
(Millions of yen)Stage 112-month expectedcredit losses
FY2021(As of March 31, 2021)
FY2022(As of March 31, 2022)

Stage 2Lifetime expectedcredit losses

Stage 3Credit impaired
financial assets

Total

136,287－42

136,329

174,30988

64

174,462― 65 ―

Changes in expected credit loss consist of the following.
FY2021 (As of March 31, 2021)(Millions of yen)Accounts receivableand lease investment
assetsLifetime expectedcredit losses
Balance at beginningof period
New financial assets
composed orpurchased
Transfer to lifetime
expected credit
lossesTransfer to credit
impaired financial
assetsTransfer to 12-month
expected credit
lossesFinancial assets
with recognitionsuspended during theperiodOthersBalance at end of
periodLoans receivable related to the sales financing business, and others
Stage 112-month expectedcredit losses

Stage 2Lifetime expectedcredit losses

Stage 3Credit impaired
financial assets

6,140

346

23

211

4,037

358

－

－

－

－

－

－

－

－

－

－

－

－

－

－

(1,993)

(132)

(10)

(61)

(50)

361

10

(96)

8,133

934

23

54

FY2022 (As of March 31, 2022)(Millions of yen)Accounts receivableand lease investment
assetsLifetime expectedcredit losses
Balance at beginningof period
New financial assets
composed orpurchased
Transfer to lifetime
expected credit
lossesTransfer to credit
impaired financial
assetsTransfer to 12-month
expected credit
lossesFinancial assets
with recognitionsuspended during theperiodOthersBalance at end of
periodLoans receivable related to the sales financing business, and others
Stage 112-month expectedcredit losses

Stage 2Lifetime expectedcredit losses

Stage 3Credit impaired
financial assets

8,133

934

23

54

4,055

607

－

－

－

－

－

－

－

－

－

－

－

－

－

－

(2,928)

(262)

(191)

(23)

1,847

(277)

229

34

11,108

1,001

61

64

― 66 ―

ii) Liquidity risk
With financing through corporate bonds and loans, Toyota Industries is exposed to liquidity risk that a payment
cannot be made on the due date because of a deterioration in financing and other conditions. In accordance with thetreasury policy, Toyota Industries prepares funding plans and secures liquidity with funds on hand and commitment
lines.
Financial liabilities by remaining contract maturities consist of the following.
FY2021 (As of March 31, 2021)(Millions of yen)
Due after
Due after
Due after
Due within one year but two years three years
one yearwithin two
but within
but within
years
three years four years

Due after
four years
but within
five years

Due after
five years

Total

Non-derivative financial
liabilities
Trade payables
and other payables
Corporate bonds andloans

344,738

1

－

－

－

－

344,739448,024

273,318

178,774

145,160

60,876277,306

1,383,460

Lease obligations

42,98428,083

21,173

14,7039,238

11,806

127,990

Deposits payable

35,495

－

－

－

－

－

35,495

6,848

146

412

482

－

－

7,889

Derivative financial
liabilities
Derivative liabilities

FY2022 (As of March 31, 2022)(Millions of yen)
Due after
Due after
Due after
Due within one year but two years three years
one yearwithin two
but within
but within
years
three years four years
Non-derivative financial
liabilities
Trade payables
and other payables
Corporate bonds andloans

Due after
four years
but within
five years

Due after
five years

Total

407,091

3

－

－

－

－

407,095

490,389

190,006

155,435

94,767137,210

358,831

1,426,641

Lease liabilities

45,84830,24722,71015,073

10,28812,761

136,930

Deposits payable

36,505

－

－

－

－

－

36,505

6,119

1,327

1,086

5

366

－

8,905

Derivative financial
liabilities
Derivative liabilities― 67 ―

iii) Market risk(a) Foreign currency risk
Engaged in business globally, Toyota Industries conducts transactions in foreign currencies and is exposed to therisk that profit or loss, cash flow and others will be affected by exchange rate fluctuations. In accordance with its
treasury policy, in principle, Toyota Industries uses foreign currency forward contracts, foreign currency option
contracts and foreign currency swaps to hedge foreign currency risk for each currency for its monetary credits andliabilities denominated in foreign currencies.
Exposure to foreign currency risk consists of the following.

FY2021(As of March 31, 2021)

FY2022(As of March 31, 2022)

Thousands of U.S.
dollars

Thousands of euros

Thousands of U.S.
dollars

Thousands of euros

93,307150,023

70,96895,917

Net exposure(Exchange rate sensitivity analysis)
For each fiscal year, the impacts on net profit or loss and equity when there is a 1% change in the exchange rateof the Japanese yen against the following currencies consist of the following. The analysis does not include theeffects of converting into yen financial instruments, assets and liabilities of foreign operations, revenue andexpenses which are denominated in functional currencies. Moreover, other variables are assumed to beconstant.
(Millions of yen)
FY2021(As of March 31, 2021)

FY2022(As of March 31, 2022)

U.S. dollar

103

86

Euro

194

131

(b) Interest rate risk
Toyota Industries procures funds through borrowings from financial institutions and issuances of corporate bonds
and is exposed to interest rate risks associated with raising and managing funds. With regard to interest rate risks,
in principle, Toyota Industries hedges such risks by interest rate swaps, interest rate options and matching cash
flows of receivables and payables, among other methods.
As a result, the Company does not conduct an interest rate sensitivity analysis because interest rate fluctuations
have little effect on the interest payment of Toyota Industries, and exposure to interest rate risk is considered
immaterial for Toyota Industries.

― 68 ―

(c) Price fluctuation risk of equity financial instruments
Toyota Industries holds listed shares of companies with business relationships and is exposed to price fluctuation
risk of equity financial instruments. Toyota Industries constantly reviews the status of its holdings of these financial
instruments, taking into account relationships with and financial conditions of business partners.
Toyota Industries does not hold equity financial instruments for trading purposes and does not actively trade theseinvestments.
If Toyota Industries assumes a 1% decline in the prices of listed shares held by Toyota Industries on the fiscal
years ended March 31, 2021 and 2022, decreases in other comprehensive income (before adjusting tax effect)would have been 29,213 million yen and 35,695 million yen, respectively.
Liquidity discounts are an important unobservable input used to measure the fair value of unlisted shares andother equity securities. A significant increase (decrease) of these discounts will cause a significant decrease(increase) in fair value.
(3) Fair value of financial instruments
The following three levels of inputs are used to measure fair value.
(Level 1)
The market prices of the same assets or liabilities in active markets (which continuously ensure sufficient trading
frequencies and transaction volumes) that Toyota Industries has access to as of the measurement date are usedwithout adjustments.
(Level 2)
This level includes the published prices of similar assets or liabilities in active markets; the published prices of thesame assets or liabilities in inactive markets; inputs other than the observable published prices of assets and liabilities;
and inputs calculated or supported mainly by observable market data.
(Level 3)
Because data are available only from limited markets, Toyota Industries uses unobservable inputs which reflect the
judgment of Toyota Industries in the assumptions used by market participants to decide the prices of assets andliabilities. Toyota Industries calculates inputs based on the best available information, including the data of Toyota
Industries itself.
When using multiple inputs to measure fair value, the fair value level is determined based on the significant input fromthe lowest level in the fair value hierarchy. Fair value is measured by the Accounting Department in accordance withthe evaluation policy and procedures of Toyota Industries, using the evaluation model that can most appropriatelyreflect individual characteristics, features and risks of financial instruments. Moreover, changes are continuously
examined for important indicators which affect fluctuations of fair value.

― 69 ―

(i) Financial instruments measured at amortized cost
The carrying amount and fair values of financial instruments measured at amortized cost consist of the following.
FY2021 (As of March 31, 2021)(Millions of yen)
Carrying
amountFair value
Level 1

Level 2

Level 3

Total

Financial assets
Loans receivable and Loans
receivables related to thesales financing business(Note)

138,594－－

136,727

136,727

Lease investment assets

365,008－－

368,749

368,749

Corporate bonds (Note)

586,691－

596,399－596,399

Long-term loans (Note)

683,031－684,671－684,671

Financial liabilities(Note)

Loans receivable, Loans receivable related to the sales financing business, corporate bonds and long-termloans include the balance to be repaid and redeemed within one year.

FY2022 (As of March 31, 2022)(Millions of yen)
Carrying
amountFair value
Level 1

Level 2

Level 3

Total

Financial assets
Loans receivable and Loans
receivable related to thesales financing business(Note)

176,723－－

169,410

169,410

Lease investment assets

398,090－－

392,497

392,497

Corporate bonds (Note)

444,303－445,654－445,654

Long-term loans (Note)

763,941－

762,404－

762,404

Financial liabilities(Note)

Loans receivable, Loans receivable related to the sales financing business, corporate bonds and long-termloans include the balance to be repaid and redeemed within one year.

Notes are omitted for short-term financial assets and short-term financial liabilities that are measured at amortized costbecause the fair value approximates the carrying amount.
The fair value of loans receivable and loans receivable related to the sales financing business is calculated withpresent value obtained by discounting the total amount of principal and interest with the expected interest rate when
newly undertaking similar lending.
The fair value of lease investment assets is calculated with present value obtained by discounting the total amount of
future lease receivables with the expected interest rate when newly undertaking similar lease transactions.
The fair values of corporate bonds and long-term loans are calculated with present value obtained by discounting thetotal amount of future principal and interest with the expected interest rate when newly undertaking similar borrowings.

― 70 ―

(ii) Fair values of financial assets and liabilities continuously at fair value
The fair-value hierarchy of financial instruments measured at fair value consist of the following. Financial assets
measured at fair value through other comprehensive income include debt instruments, but they were immaterial.
Moreover, there is no transfer between different levels.
FY2021 (As of March 31, 2021)(Millions of yen)
Level 1

Level 2

Level 3

Total

Financial assets measured at fair value throughprofit or loss
－

9,422

－

9,422

3,235

－

4,787

8,023

Financial assets measured at fair value throughother comprehensive income

2,921,025

853

107,4073,029,286

Total

2,924,261

10,276112,195

3,046,733

－

7,889

－

7,889

－

7,889

－

7,889

Derivative assets
OthersFinancial liabilities measured at fair value throughprofit or loss
Derivative liabilities
Total

FY2022 (As of March 31, 2022)(Millions of yen)
Level 1

Level 2

Level 3

Total

Financial assets measured at fair value throughprofit or loss－

24,457－24,457

2,769

－

5,677

8,447

Financial assets measured at fair value throughother comprehensive income

3,570,368

846

132,437

3,703,652

Total

3,573,138

25,303

138,115

3,736,557

－

8,905

－

8,905

－

8,905

－

8,905

Derivative assets
OthersFinancial liabilities measured at fair value throughprofit or loss
Derivative liabilities
Total― 71 ―

Derivatives are transactions for forward exchange contracts, foreign currency option contracts, interest rate swaps,
interest rate and currency swaps, and interest rate options.
Fair value of forward exchange contracts is calculated based on observable market data including forward exchange
rates. Data for the fair value of foreign currency option contracts, interest rate swaps, interest rate and currency swaps
and interest rate options are calculated by financial institutions based on observable market data.
Toyota Industries uses the modified book value method when measuring the fair value of unlisted shares and other
equity securities categorized as financial assets measured at fair value through other comprehensive income. The
illiquidity discount, which is an important unobservable input used to measure the fair value of unlisted shares, iscalculated as 30%.
Changes in financial instruments classified as Level 3 consist of the following.
(Millions of yen)
FY2021(April 1, 2020 - March 31, 2021)
Balance at beginning of period
Gains and losses included in othercomprehensive income (Note)
Purchase

FY2022(April 1, 2021 - March 31, 2022)

100,325

112,195

10,88024,729

1,435

1,347

Sales

(470)

(151)

Others24(5)112,195

138,115

Balance at end of period(Note)

Gains and losses included in other comprehensive income are those for financial assets measured at fairvalue through other comprehensive income as of the closing date. These gains and losses are included in"Net changes in revaluation of FVTOCI financial assets" on the consolidated statement of comprehensive
income.

― 72 ―

(4) Offsetting of financial assets and financial liabilities
Among derivative transactions of Toyota Industries, there are master netting agreements of similar agreements. Under
these agreements, if non-performance occurs between contracting parties of an agreement, receivables and payables ofbusiness partners will be settled in net amounts.
The following information pertains to the netting of financial assets and financial liabilities recognized against the samebusiness partners.
FY2021 (As of March 31, 2021)(Millions of yen)

Total financial
assetsAmount that
Financial assets
could be offset inon thethe future based
consolidated
on master netting
statement ofagreements andfinancial position,others (Includingnet
collateral)

Total offset

Net amountFinancial assets
Trade receivables
and other receivables
Derivative assets
Total

193,271

112,464

80,806－80,806

4,480

－

4,480

2,475

2,004

197,751

112,464

85,2862,475

82,810(Millions of yen)

Total financial
liabilities

Amount that
Financial
could be offset inliabilities on thethe future based
consolidated
on master netting
statement ofagreements andfinancial position,others (Includingnet
collateral)

Total offset

Net amountFinancial liabilities
Trade payables
and other payables

214,078

112,464

101,613－

101,613

Derivative liabilities

6,009

－

6,009

2,475

3,533

220,087

112,464

107,622

2,475

105,147

Total― 73 ―

FY2022 (As of March 31, 2022)(Millions of yen)

Total financial
assetsAmount that
Financial assets
could be offset inon thethe future based
consolidated
on master netting
statement ofagreements andfinancial position,others (Includingnet
collateral)

Total offset

Net amountFinancial assets
Trade receivables
and other receivables

179,241

114,31564,926－64,926

Derivative assets

10,877－

10,877

3,235

7,641

190,118

114,31575,803

3,235

72,568

Total(Millions of yen)

Total financial
liabilities

Amount that
Financial
could be offset inliabilities on thethe future based
consolidated
on master netting
statement ofagreements andfinancial position,others (Includingnet
collateral)

Total offset

Net amountFinancial liabilities
Trade payables
and other payables

182,147

114,315

67,831－

67,831

Derivative liabilities

4,133

－

4,133

3,235

897

186,280

114,315

71,965

3,235

68,729Total― 74 ―

(5) Derivative transactions and hedging activities
Toyota Industries has concluded derivative agreements with financial institutions to hedge changes in cash flows or fairvalue of financial assets and financial liabilities. Forward exchange contracts and currency options are used to hedge
foreign currency risks concerning trade receivables, trade payables and others denominated in foreign currencies.
Moreover, currency swaps, interest rate swaps, interest rate and currency swaps, and interest options are used to hedge
foreign currency risk and interest rate risk of borrowings, corporate bonds and lease investment assets. Toyota Industries
applies hedge accounting for Items that meet hedge accounting requirements.
In the execution and management of hedge transactions, interest rate risk and foreign currency risk are hedged inaccordance with treasury policy. Moreover, the status of hedge transactions is regularly reported to the director in chargeof accounting and other responsible people.
Regarding foreign currency risk in operating activities, a certain amount of targeted risks is hedged, with the total amountof targeted risks set as the upper limit. However, among targeted risks, usance transactions are in principle fully covered.
Regarding the foreign currency risk of investing activities which require a resolution of the Board of Directors, the fullamount is hedged in principle. For the foreign currency risk of other investing activities and financing activities, the fullamount is hedged as necessary.
The effectiveness of hedging is evaluated by respectively comparing the market fluctuations or the accumulated changes
in cash flows of hedged items and hedging instruments during the period from the start of hedging to the evaluation of theeffectiveness. A high correlation has been observed between the two. Moreover, regarding hedges with prospective
ineffective portions, the ineffective amount is calculated using quantitative methods. Because the important conditions forhedging instruments and hedged items are consistent or closely consistent, the amount of ineffective portions isimmaterial, and it has been omitted.
Toyota Industries sets an appropriate hedging ratio based on the volumes of hedged items and hedging instruments atthe start of hedge transactions, establishing a one-on-one relationship in principle. If the hedging relationship comes to bedeemed not effective but there is no change in the purpose of risk management, the hedging ratio established at the startof hedging relationship is readjusted to make the relationship effective again. Moreover, if the purpose of risk
management is changed for the hedging relationship, application of hedge accounting is suspended.

― 75 ―

Toyota Industries may be affected by interest rate benchmark reform in its hedging transactions. Among derivatives
designated as hedge transactions as of the fiscal year ended March 31, 2022, those that will be affected by interest ratebenchmark reform are interest rate swap transactions (notional principal of 134,384 million yen), interest rate andcurrency swap transactions that use USD LIBOR as a reference rate (notional principal of 41,979 million yen). These
hedge transactions are held mainly to hedge exposure to variability in cash flows arising from floating rate borrowings.
However, application of Interest Rate Benchmark Reform Amendments to IFRS 9, IAS 39 and IFRS 7 (issued in
September 2019) permit the continuation of hedge accounting during the period of uncertainty arising from the interest
rate benchmark reform prior to the replacement of the existing interest rate benchmarks with alternative interest ratebenchmarks. Therefore, Toyota Industries will not be affected.
Toyota Industries will continue to apply the relief measures provided for in the amendments until the period of uncertainty
arising from the interest rate benchmark reform is over. Toyota Industries assumes that this uncertainty will not end until
the contracts are amended with regard to the date of replacement with alternative benchmark rates, alternative
benchmark rates based cash flows and related spread adjustments for the alternative benchmark rates.
Financial instruments referencing USD LIBOR at the end of the current fiscal year are as follows.

(Millions of yen)
Carrying amounts
Amounts not transferred toalternative interest rates

Total amountNon-derivative financial assets
Loans receivable and loans receivable
related to the sales financing business

176,723787

Corporate bonds

444,303

82,980Loans

881,008

193,669

Non-derivative financial liabilities(Millions of yen)
Notional principal
Amounts not transferred toalternative interest rates

Total amount
Derivative financial instruments
Interest rate swap

307,080

134,384

Interest rate and currency swap

63,69941,979Toyota Industries' Accounting Department is taking the lead in monitoring interest rate benchmark developments asnecessary and appropriately shifting to the alternative interest rate benchmarks in consultation with the respective
financial institutions.

― 76 ―

(i) Notional principals and average prices of hedging instruments
Notional principals and average prices of hedging instruments for which hedge accounting applied consist of thefollowing.
FY2021 (As of March 31, 2021)

Notional principal
Risk

Hedge Instruments

Foreign currency forward contract
transactions

Foreigncurrency
risk

Unit

Over one
Within year but Over five
one year within five years
years

Average
price
or
Average
rate

Total

Millionsof

BUY JPY / SELL USD

USD

88

－

－

88 JPY 105.57

BUY EUR / SELL USD

EUR

58

19

－

78 USD

1.20

BUY SEK / SELL USD

USD

1

－

－

1 SEK

8.75

BUY SEK / SELL EUR

EUR

32

－

－

32 SEK 10.20

BUY SEK / SELL GBP

GBP

50

－

－

50 SEK 11.52

BUY SEK / SELL AUD

AUD

20

－

－

20 SEK

6.40

BUY USD / SELL SEK

USD

13

－

－

13 SEK

8.50

BUY EUR / SELL SEK

EUR

10

－

－

10 SEK 10.16

BUY JPY / SELL USD

USD

124

－

－

124 JPY 105.35

BUY JPY / SELL EUR

EUR

61

－

－

61 JPY 127.64

BUY JPY / SELL AUD

AUD

18

－

－

18 JPY 81.25

USD

600

500

250

1,350 JPY 109.12

USD

150

748

－

898

Pay JPY Fix / Receive USD Float

USD

80

30

42

152 JPY 108.13

Pay JPY Fix / Receive AUD Float

AUD

53

－

－

53 JPY 94.23

Pay USD Fix / Receive JPY Float

JPY－

21,720－21,720 JPY 108.60

HKD

－

300

－

300

EUR

60

583

40

684

－

GBP

－

118

－

118

－

Currency option transactions

Cash flow
hedgesCurrency swap transactions
Pay JPY / Receive USD
Interest rate swap transactions
Pay Fix / Receive Float－

Interest rate and currency swap
transactions
Interest
rate risk

Interest options
Interest cap

%

3.00

Interest rate swap transactions
Fair value Interest
hedgesrate risk

Pay Fix / Receive Float― 77 ―

FY2022 (As of March 31, 2022)

Notional principal
Risk

Hedge Instruments

Foreign currency forward contract
transactions

Foreigncurrency
risk

Unit

Over one
Within year but Over five
one year within five years
years

Average
price
or
Average
rate

Total

Millionsof

BUY JPY / SELL USD

USD

97

－

－

97 JPY 115.17

BUY EUR / SELL USD

EUR

45

0

－

45 USD

1.17

BUY SEK / SELL USD

USD

1

－

－

1 SEK

9.28

BUY USD / SELL EUR

EUR

20

－

－

20 USD

1.10

BUY SEK / SELL EUR

EUR

31

－

－

31 SEK 10.44

BUY SEK / SELL GBP

GBP

51

－

－

51 SEK 12.19

BUY SEK / SELL AUD

AUD

23

－

－

23 SEK

6.60

BUY USD / SELL SEK

USD

18

－

－

18 SEK

9.04

BUY EUR / SELL SEK

EUR

8

－

－

8 SEK 10.36

BUY JPY / SELL USD

USD

98

－

－

98 JPY 116.26

BUY JPY / SELL EUR

EUR

50

－

－

50 JPY 130.86

BUY JPY / SELL AUD

AUD

18

－

－

18 JPY 84.00

Pay JPY / Receive USD

USD

500

－

250

750 JPY 107.22

Pay USD / Receive JPY

JPY

－

8,169

－

8,169 JPY 110.70

USD

70

1,028

－

1,098

Pay USD Fix / Receive JPY Float

JPY－

21,720－21,720 JPY 108.60

Pay JPY Fix / Receive USD Float

USD

－

72

－

72 JPY 110.41

HKD

－

300

－

300

EUR

39

696

－

735

－

AUD

34

98

－

132

－

GBP

7

73

－

80

－

Currency option transactions
Cash flow
hedgesCurrency swap transactions

Interest rate swap transactions
Pay Fix / Receive Float

Interest
rate risk－

Interest rate and currency swap
transactions

Interest options
Interest cap

%

3.00

Interest rate swap transactions
Fair value Interest
hedgesrate risk

Pay Fix / Receive Float― 78 ―

(ii) Effects of hedge accounting on the consolidated statement of financial position
The carrying amounts of hedging instruments for which hedge accounting applied consist of the following.
FY2021 (As of March 31, 2021)(Millions of yen)
Risk

Hedge instruments

Carrying amount of hedging
instruments
AssetsForeign currency forward
contract transactions
Foreign
Currency option
currency risk transactions
Currency swap
transactions
Cash flow hedges
Interest rate swap
transactions
Interest rate Interest rate and currency
riskswap transactions
Interest option
transactions
Interest rate Interest rate swap
Fair value hedges
risktransactions
Total

Liabilities

1,134

2,342

1

277

6,353

－

550

439

535

1,443

－

79

41

411

8,616

4,994

Line items on the
consolidated statementof financial position
Other financial assets
and liabilities
Other financial assets
and liabilities
Other financial assets
Other financial assets
and liabilities
Other financial assets
and liabilities
Other financial liabilities
Other financial assets
and liabilities
Other financial assets
and liabilities

FY2022 (As of March 31, 2022)(Millions of yen)
Risk

Hedge instruments

Carrying amount of hedging
instruments
AssetsLiabilities

Foreign currency forward
contract transactions
Foreign
Currency option
currency risk transactions
Currency swap
transactions
Cash flow hedges
Interest rate swap
transactions
Interest rate Interest rate and currency
riskswap transactions
Interest option
transactions
Interest rate Interest rate swap
Fair value hedges
risktransactions
Total― 79 ―

Line items on the
consolidated statementof financial position
Other financial assets
and liabilities
Other financial assets
and liabilities
Other financial assets
and liabilities

1,103

3,502

0

387

10,301

387

6,513

－

Other financial assets

995

2,438

Other financial assets
and liabilities

103－

Other financial assets

2,157

70

21,176

6,786

Other financial assets
and liabilities
Other financial assets
and liabilities

The carrying amounts of surplus in cash flow hedges consist of the following.
(Millions of yen)
FY2021(As of March 31, 2021)
Surplus in cash flow hedges

FY2022(As of March 31, 2022)
2,211

3,338

The carrying amounts and accumulated amounts of fair value hedge adjustments on the hedged items classified asfair value hedges consist of the following.
FY2021 (As of March 31, 2021)(Millions of yen)
Carrying amount of hedged
items
AssetsInterest rate risk

114,095

Accumulated amount of fairvalue hedge adjustments

Liabilities

Assets－351

Liabilities－

Line items on theConsolidated Statement of
Financial Position
Trade receivables andother receivables

FY2022 (As of March 31, 2022)(Millions of yen)
Carrying amount of hedged
items
AssetsInterest rate risk

122,300

Accumulated amount of fairvalue hedge adjustments

Liabilities

Assets－(1,790)Liabilities－

Line items on theConsolidated Statement of
Financial Position
Trade receivables andother receivables(iii) Effects of hedge accounting on the consolidated statement of profit or loss and other comprehensive income (loss)
Profit (loss) from cash flow hedges consist of the following.
FY2021 (April 1, 2020 - March 31, 2021)(Millions of yen)
Changes in the value ofhedging instruments
recognized in othercomprehensive income

Amount transferred fromsurplus in cash flow
hedges to profit or loss

Line items affected bytransfers in profit or loss

Foreign currency risk

808

(1,362)

Net sales,
Financial income,Financial expenses

Interest rate risk

(36)

745

Financial income,Financial expenses

FY2022 (April 1, 2021 - March 31, 2022)(Millions of yen)
Changes in the value ofhedging instruments
recognized in othercomprehensive income

Amount transferred fromsurplus in cash flow
hedges to profit or loss

Line items affected bytransfers in profit or loss

Foreign currency risk

(7,657)

3,575

Net sales,
Financial income,Financial expenses

Interest rate risk

4,524

684

Financial income,Financial expenses― 80 ―

30. Leases(1) As lessor
Toyota Industries leases machinery and vehicles.
Toyota Industries strives to reduce risks related to underlying assets through periodic monitoring of the usage status aswell as the accumulation of sales information in the used machinery and vehicle market.
(i) Finance Leases
Maturity analysis of lease payments receivable based on finance leases consists of the following.
(Millions of yen)
FY2021(As of March 31, 2021)

FY2022(As of March 31, 2022)

Within one year

119,956

133,964

Over one year but within two years

90,824

97,845

Over two years but within three years

64,354

69,205

Over three years but within four years

38,46941,806

Over four years but within five years

19,49520,709Over five years

7,819

8,049

Total

340,920

371,581

Elimination : Unearned finance income(20,896)(24,512)Unguaranteed residual value (discounted)

44,98351,021

Net investment in the lease

365,008

398,090

Financial income on net investment in the lease for the fiscal year ended March 31, 2021 and 2022 amounted to
14,902 million yen and 15,840 million yen respectively, and are included in "Net Sales" on the consolidated statementof profit or loss.
(ii) Operating leases
Maturity analysis of lease payments based on the non-cancellable operating lease contracts consists of the following.
(Millions of yen)
FY2021(As of March 31, 2021)

FY2022(As of March 31, 2022)

Within one year

69,82974,468Over one year but within two years

44,67846,613

Over two years but within three years

32,75835,491

Over three years but within four years

24,216

24,954

Over four years but within five years

13,52014,661

Over five years

3,150

4,225

188,156

200,415

Total
Lease income from operating leases consists of the following.

(Millions of yen)
FY2021(April 1, 2020 - March 31, 2021)

FY2022(April 1, 2021 - March 31, 2022)

Lease income relating to variable lease
payments that do not depend on an index ora rateOthers

8,350

7,707

106,577

126,572

Total

114,927

134,280― 81 ―

(2) As lessee
Toyota Industries leases buildings and structures, machinery and vehicles, and others.
For some lease agreements, there is a renewal option or a purchase option. Moreover, there are no restrictions imposedby lease agreements (e.g., restrictions on additional borrowings and additional leasing).
The carrying amount of right-of-use asset included in "Property, Plant and Equipment" or "Goodwill and Intangible
Assets" consists of the following.
(Millions of yen)
Property, Plant and Equipment
Leases as
lessorOther than leases as lessor
Tools,
Buildings and Machinery
furniture andstructures and vehicles
fixtures
FY2021(As of March 31,
2021)
FY2022(As of March 31,
2022)

Land

Goodwill andIntangible
Assets

Machineryand vehicles

Other
intangible
assetsTotal

35,12021,651758

3,950

45,19675

106,754

38,31025,289624

5,149

48,081

139

117,595

Depreciation of right-of-use assets consists of the following.
(Millions of yen)
Property, Plant and Equipment
Leases as
lessorOther than leases as lessor
Tools,
Buildings and Machinery
furniture andstructures and vehicles
fixtures
FY2021(April 1, 2020 March 31, 2021)
FY2022(April 1, 2021 March 31, 2022)

Land

Goodwill andIntangible
Assets

Machineryand vehicles

Other
intangible
assets

Total

8,962

9,067

296

273

9,603

11

28,215

10,34011,479

246

323

9,802

18

32,210

Increase of right-of-use assets for the fiscal year ended March 31, 2021 and 2022 is 34,113 million yen and 42,073
million yen respectively.
Profit or loss and total cash outflow for leases as lessee consist of the following.
(Millions of yen)
FY2021(April 1, 2020 - March 31, 2021)

FY2022(April 1, 2021 - March 31, 2022)

1,419

1,558

Interest expenses for lease liabilities
Expenses for short-term leases

3,140

3,830

Income from sub-leasing right-of-use assets

56,42064,772

Total cash outflow for leases

41,17045,276― 82 ―

31. Changes in Liabilities arising from Financing Activities
Changes in the balances of liabilities arising from financing activities are as follows.
(Millions of yen)
Short-term
loans

Commercial
paperLong-term
loans

Corporatebonds

67,38880,671

582,628

609,081

120,117(15,147)(62,355)

83,105(37,550)(23,251)

－

－

－

－

15,746

Foreign currency translationdifference and others

4,589

493

17,297

15,16011,040

Balance as of March 31, 2021

56,83018,809683,031586,691

123,653

50,33840,59053,068(170,860)(16,453)

－

－

－

－

13,626

Foreign currency translationdifference and others

9,897

5,802

27,841

28,472

11,909Balance as of March 31, 2022

117,066

65,203763,941444,303132,735

Balance as of April 1, 2020
Changes from financing cash flows

Leaseliabilities

Non-cash changes
Increase through commencement of lease

Changes from financing cash flows
Non-cash changes
Increase through commencement of lease(Note)

The above amounts include the balance to be repaid and redeemed within one year.

― 83 ―

32. Related Party Transactions
The transactions between Toyota Industries and related parties and the outstanding receivables and payables consistof the following.
(1) Transactions with related parties and outstanding receivables and payables
Toyota Industries has transactions with the following related parties.
For the conditions of transactions and determination policies with related parties, the Company offers prices based on
consideration of overall costs and market price of the products, and negotiates prices for each fiscal year.
(Millions of yen)
FY2021(April 1, 2020 - March 31, 2021)

FY2022(April 1, 2021 - March 31, 2022)

Sales of goods and provision of services

251,364

379,530

Purchase of parts and receipt of services

23,24926,707

Toyota Motor Corporation and its subsidiaries(Note)

Toyota Motor Corporation has a significant influence on Toyota Industries.

The unsettled balance on the above transactions and its allowance for credit losses consist of the following.
(Millions of yen)
FY2021(As of March 31, 2021)

FY2022(As of March 31, 2022)

Toyota Motor Corporation and its subsidiaries
Trade receivables and other receivables
Allowance for doubtful accounts
Trade payables and other payables(Note)

71,527

68,496

2－

102,992

68,523

Toyota Motor Corporation has a significant influence on Toyota Industries.

(2) Principal management personnel compensation
FY2021 (April 1, 2020 - March 31, 2021)(Millions of yen)
Total amount ofcompensation
Principal management personnel

653

Total compensation by type
Bonuses
Fixed Remuneration(Performance-linked(Basic Remuneration)
Remuneration)
453
200

FY2022 (April 1, 2021 - March 31, 2022)(Millions of yen)
Total compensation by type
Bonuses
Fixed Remuneration(Performance-linked(Basic Remuneration)
Remuneration)
616
403
213

Total amount ofcompensation
Principal management personnel― 84 ―

33. Contingencies
FY2021 (April 1, 2020 - March 31, 2021)
On April 28, 2021, the Company have announced that the shipment of some models of the engine-powered lift trucks
manufactured by its subsidiary Toyota Material Handling, Inc. in Indiana, United States had been suspended due todelays in obtaining U.S. engine emissions certification.
Subsequently, on May 21, 2021, the Company have announced that it would temporarily suspend the production ofthese models at Toyota Material Handling starting on June 1. The Company expect that Toyota Material Handling will
restart production of these models once it obtains certification for engines.
It is difficult to reasonably estimate the impact of this matter on Toyota Industries' consolidated financial statements.
FY2022 (April 1, 2021 - March 31, 2022)
As announced on May 21, 2021, due to the delay in obtaining the U.S. engine emissions certification for the engines
installed in some models of lift trucks sold in North America, the Company's subsidiary Toyota Material Handling, Inc. inIndiana, United States had suspended production and shipments of such models. On May 17, 2022, the Company haveannounced that it had obtained engine certification for its main models of small liquefied petroleum gas (LPG) lift trucks
and resumed shipments on May 12, 2022.
We are working to obtain certification and resume production for the remaining models, and it is difficult to reasonably
estimate the impact of this matter on Toyota Industries' consolidated financial statements.
34. Commitments
Regarding the acquisition of property, plant and equipment, important capital expenditures (commitments) which arecontracted but not yet recognized on the consolidated financial statements are 35,664 million yen and 63,358 million
yen as of the end of the fiscal year ended March 31, 2021 and the end of the fiscal year ended March 31, 2022,
respectively.

― 85 ―

35. Major Consolidated Subsidiaries
The Company's major subsidiaries are listed below. There are no subsidiaries of individual significance for which theCompany has non-controlling interests during the fiscal years ended March 31, 2021 and 2022.

Company Name

Location

Principal Business

Percentage of Voting
Rights of The Company(%)

Tokyu Co., Ltd.

Oguchi-cho,Niwa-gun, Aichi

Automobile

100.00Tokaiseiki Co., Ltd.

Iwata-shi, Shizuoka

Automobile

100.00IZUMI MACHINE MFG. CO., LTD.

Obu-shi, Aichi

Automobile

100.00TOYOTA L&F Tokyo Co., Ltd.

Shinagawa-ku, Tokyo

Materials Handling
Equipment

100.00

Taikoh Transportation Co., Ltd.

Kariya-shi, Aichi

Others

54.04

Aichi Corporation

Ageo-shi, Saitama

Toyota Material Handling Manufacturing
France S.A.S

Ancenis, FranceMichigan Automotive Compressor Inc.

Michigan, U.S.A.

Toyota Industries Europe AB

Mjölby, Sweden

Toyota Material Handling Europe AB

Mjölby, Sweden

Toyota Industries North America, Inc.

Indiana, U.S.A.

Others100.00Toyota Material Handling, Inc.

Indiana, U.S.A.

Materials Handling
Equipment

100.00TD Deutsche Klimakompressor GmbH

Sachsen, Germany

Automobile

65.00

Toyota Material Handling Australia Pty
LimitedNew South Wales,
Australia

Materials Handling
Equipment

100.00

TD Automotive Compressor Georgia, LLC

Georgia, U.S.A.

Automobile

77.40

Uster Technologies AG

Zurich, Switzerland

Textile Machinery

100.00Industrial Components and Attachments, Inc.

Oregon, U.S.A.

Cascade Corporation

Oregon, U.S.A.

Toyota Industry (Kunshan) Co., Ltd.

Jiangsu, China

Automobile

63.40

Toyota Industries Commercial Finance, Inc.

Texas, U.S.A.

Materials Handling
Equipment

100.00Shandong, China

Automobile

50.10

Jiangsu, China

Automobile

78.80

P.T. TD Automotive Compressor Indonesia

West Java, Indonesia

Automobile

50.10

Bastian Solutions LLC

Indiana, U.S.A.

Vanderlande Industries Holding B.V.

North Brabant,
Netherlands

Materials Handling
Equipment
Materials Handling
Equipment

Toyota Industries Engine India Pvt Ltd.

Karnataka, India

Automobile

Yantai Shougang TD AutomotiveCompressor Co., Ltd.
TD Automotive Compressor Kunshan Co.,Ltd.

36. Subsequent Events
Please refer to "33. Contingencies".

― 86 ―

Materials Handling
Equipment
Materials Handling
Equipment
Automobile
Materials Handling
Equipment
Materials Handling
Equipment

Materials Handling
Equipment
Materials Handling
Equipment

53.64
100.0060.00
100.00100.00100.00100.00100.00100.0098.80

II. [Other]
Quarterly information in the fiscal year ended March 31, 2022
(Cumulative period)
Net sales (Millions of yen)
Profit before income taxes(Millions of yen)
Profit attributable to owners of theparent (Millions of yen)
Earnings per share (Yen)(Accounting period)
Quarterly earnings per share (Yen)First quarter

Second quarter

Third quarter

Full year

616,9141,260,842

1,967,949

2,705,183

101,302

137,801

219,510

246,123

77,598103,386

162,784

180,306

249.93332.99524.30580.73First quarter

Second quarter

249.93― 87 ―

83.06

Third quarter
191.31

Fourth quarter
56.44

Independent Auditor's Report
To the Board of Directors of Toyota Industries Corporation

OpinionWe have audited the consolidated financial statements of Toyota Industries Corporation and its subsidiaries (the Group),
which comprise the consolidated statement of financial position as at March 31, 2022, and the consolidated statement ofincome, consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated
statement of cash flows for the year then ended, and notes to the consolidated financial statements.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated
financial position of the Group as at March 31, 2022, and its consolidated financial performance and its consolidated cash
flows for the year then ended in accordance with International Financial Reporting Standards.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities underthose standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial
Statements section of our report. We are independent of the Group in accordance with the ethical requirements that are
relevant to our audit of the consolidated financial statements in Japan, and we have fulfilled our other ethicalresponsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of theconsolidated financial statements of the current period. These matters were addressed in the context of our audit of theconsolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
Valuation of goodwill and intangible assets with indefinite useful lives
Key audit matter description

How our audit addressed the key audit matter

The Group develops energy-efficient electric lift trucks,
next-generation models of lift trucks, automation
technology for materials handling equipment andmaterials handling systems to provide logistics
solutions in its Materials Handling Equipment Business.
In order to further strengthen the business, the Groupacquired Vanderlande Group (Vanderlande), a global
logistics solutions provider, and Bastian Group(Bastian), a leading logistics system integrator in North
America, during the year ended March 31, 2018. As aresult, the Group recorded goodwill of 67,852 million
yen and intangible assets with indefinite useful lives of
24,742 million yen arising from the acquisition of
Vanderlande, and goodwill of 15,752 million yen arisingfrom the acquisition of Bastian as of March 31, 2022
(Note 10 "Goodwill and Intangible Assets"). Goodwill asa result of both the Vanderlande and BastianWe performed the following procedures over the impairment
assessment for the goodwill and intangible assets withindefinite useful lives:・ Assessed the appropriateness of cash-generating units
identified by management, considering the lowest level
used by the Group for internal management purposes.
・ Performed the following procedures over the five-yearbusiness plans approved by management for the
Materials Handling Equipment CGU and the
Vanderlande CGU:
- Compared the business plans used in the prior-year
impairment assessment with the actual results.
- Obtained an understanding of the production andsales strategies according to local market conditions
based on customer location as well as the capital
expenditure plans and assessed whether thebusiness plans were consistent with theacquisitions is allocated to Materials Handling
Equipment Business, a cash-generating unit, and theintangible assets with indefinite useful lives ofVanderlande are allocated to Vanderlande, a cashgenerating unit. Net sales for Materials Handling
Equipment segment is 1,789,941 million yen andsegment profit is 113,616 million yen for the year
ended March 31, 2022 (Note 4 "Segment Information").
The Group performs an annual impairment test for
goodwill and intangible assets with indefinite useful lives, and more frequently if there are indicators of
impairment. In the impairment test, the recoverable
amount of a cash-generating unit is determined basedon value in use. The Group calculates the value in use
as the present value of the future cash flows expected
to be derived from the Materials Handling Equipment
CGU and the Vanderlande CGU principally based on
the five-year business plan approved by management.
An assumed increasing growth rate is used to
extrapolate cash flows beyond the five-year period.
The business plan is prepared based on production
and sales strategies including the launch of new
products according to local market conditions based on
customer location as well as capital expenditure plans.
The increasing growth rate used for cash flows beyond
the five-year period is determined with reference to the
expected long-term growth rate of markets to which theMaterials Handling Equipment CGU and the
Vanderlande CGU belong. The discount rate isdetermined based on the weighted average cost ofcapital (pre-tax) of the Materials Handling Equipment
CGU and the Vanderlande CGU. The Group concludes
that it is highly unlikely that these assets will besignificantly impaired even if these assumptions
change within a reasonable and predictable range(Note 10 "Goodwill and Intangible Assets").

understanding and the historical trends in net sales
and profit.
・ Performed the following procedures over the growth rateused to extrapolate cash flows beyond the five-year
period:- Assessed whether the growth rate was consistent
with the historical growth rate.
- Assessed whether the growth rate was reasonable
compared with data of the expected long-term
growth rate of the market which was provided by athird party independent from the Group.
・ Performed the following procedures over the discountrate:- Assessed whether the discount rate was reasonable
and recalculated the underlying analysis supporting
the discount rate.
- Assessed whether the market data used todetermine the discount rate was consistent with thedata provided by a pricing vendor independent fromthe Group.
- Involved business valuation specialists to perform
independent recalculations of the discount rate andcompared the calculation with the discount rate
determined by the management.

The goodwill and intangible assets with indefinite
useful lives are material to the consolidated financial
statements. In addition, the calculation of value in use
in impairment testing uses assumptions such as
estimates of future cash flows based on the five-yearbusiness plan, growth rates, and discount rates, all ofwhich involve management's subjective judgement.
Therefore, we considered the audit of the impairment
assessment for goodwill and intangible assets withindefinite useful lives for these CGUs to be a key audit
matter.
Other Information
The other information comprises the information included in the Annual Financial Report, but does not include theconsolidated financial statements and our auditor's report thereon. Management is responsible for the other information. In
addition, those charged with governance are responsible for overseeing the Group's reporting process of the otherinformation.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any formof assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and,in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or
our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, weare required to report that fact.
We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements inaccordance with International Financial Reporting Standards, and for such internal control as management determines isnecessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether
due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group ’s ability tocontinue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic
alternative but to do so.
Those charged with governance are responsible for overseeing the Group's financial reporting process.
Auditor's Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole arefree from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance withauditing standards generally accepted in Japan will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise professional judgment
and maintain professional skepticism throughout the audit. We also:・ Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.
・ Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances, while the purpose of the consolidated financial statement audit is not to express an opinion on theeffectiveness of the Group's internal control.
・ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
・ Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on theaudit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant
doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as agoing concern.
・ Evaluate whether the presentation and disclosures of the consolidated financial statements are in accordance with
International Financial Reporting Standards, the overall presentation, structure and content of the consolidated financial
statements, including the disclosures, and whether the consolidated financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
・ Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities
within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction,
supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our
audit.
We also provide those charged with governance with a statement that we have complied with relevant ethicalrequirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of mostsignificance in the audit of the consolidated financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about thematter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our reportbecause the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits ofsuch communication.
Interest required to be disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Group which is required to be disclosed
pursuant to the provisions of the Certified Public Accountants Act of Japan.

Kosaku Kawahara
Designated Engagement Partner
Certified Public Accountant
August 10, 2022

Masahide Kobayashi
Designated Engagement Partner
Certified Public Accountant

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