Annual Financial Report2017

For the Year Ended March 31, 2017

Financial Summary

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

P3

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

P19

Report of Independent Auditors

P106

TOYOTA INDUSTRIES CORPORATION

Financial Summary
Toyota Industries Corporation and its consolidated subsidiaries< IFRS >Date oftransition to
IFRS

FY2016FY2017

Net sales (Millions of yen)―

1,696,856

1,675,148

Operating profit (Millions of yen)―

137,026

127,345

Profit (Millions of yen)―

199,956

137,565

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

194,270

131,398

Comprehensive income (Millions of yen)―

(253,021)

202,743

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

2,391,330

2,098,658

2,240,293

Total assets (Millions of yen)

4,749,415

4,317,282

4,558,212

Equity per share: attributable to owners of the parent(Yen)7,611.92

6,678.80

7,215.37

Earnings per share- basic (Yen)―618.34420.78

Earnings per share- diluted (Yen)―618.33

－

50.35

48.61

49.15

Return on equity attributable to owners of the parent (%)

―

8.65

6.06

Price-to-earnings ratio (Times)

―

8.18

13.14

Net cash provided by operating activities (Millions of yen)―

248,049

239,094

Net cash used in investing activities (Millions of yen)―

(532,238)(86,925)

Net cash provided by financing activities (Millions of yen)―

124,495

789

Cash and cash equivalents at end of period(Millions of yen)

248,706

92,399243,685

Number of employees

52,52351,45852,623Equity attributable to owners of the parent ratio (%)(Notes) 1. Toyota Industries Corporation and its subsidiaries have adopted International Financial Reporting Standards("IFRS") for the consolidated financial statements of the annual report from the fiscal year ending March 31,
2017. The date of transition to IFRS is April 1, 2015.
(Notes) 2. Amounts for diluted earnings per share are not presented for FY2017 because there are no shares with apotentially dilutive effect.

-1-

< Japanese GAAP >FY2013
Net sales (Millions of yen)

FY2014FY2015FY2016FY2017

1,615,244 2,007,856 2,166,661 2,243,220 2,250,466

Ordinary profit (Millions of yen)

86,836138,133

170,827

185,398

177,121

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

53,11991,705

115,263

183,036

125,534

Comprehensive income (Millions of yen)349,283

321,206

629,626 (277,053)

198,548

Total equity (Millions of yen)

1,524,933 1,829,326 2,425,929 2,113,948 2,256,271

Total assets (Millions of yen)

3,243,779 3,799,010 4,650,896 4,199,196 4,428,644

Equity per share (Yen)

4,719.66

5,640.08

7,500.16

6,481.97

6,995.47

Earnings per share- basic (Yen)

170.36146.27367.06582.58402.00Earnings per share- diluted (Yen)

170.35146.22366.99582.57―

Equity-to-total capital ratio (%)

45.43

46.58

50.66

48.50

49.04

Return on equity (%)

4.06

5.66

5.59

8.33

5.97

Price-to-earnings ratio (Times)

20.13

16.94

18.74

8.69

13.76

151,299

155,059

182,191

240,169

245,602(274,210)(118,483) (160,769) (531,561)(82,509)

Net cash provided by operating activities(Millions of yen)
Net cash used in investing activities(Millions of yen)
Net cash provided by (used in) by financing activities(Millions of yen)
Cash and cash equivalents at end of period(Millions of yen)
Number of employees

7,050

6,183

(8,918)130,923(6,615)

179,359

226,406

248,706

92,399243,685

47,41249,33352,52351,45852,623(Notes) 1. Certain FY2016 amounts have been reclassified to conform to the presentations of FY2017.
(Notes) 2. Amounts for diluted earnings per share are not presented for FY2017 because there are no shares with apotentially dilutive effect.

-2-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 are based on
information known to management as of June 2017.
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, 2017 is referred to as fiscal 2017 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 207 consolidated subsidiaries.

1. Result of Operations(1) Operating Performance
In fiscal 2017 (ended March 31, 2017), the global economy mildly expanded underpinned by monetary and financial
policies in respective countries despite a deceleration of the Chinese economy and the anticipated impact of the U.K.'s
decision to leave the EU. The Japanese economy continued to grow, albeit incrementally, due mainly to increases incapital investment and exports as well as a recovery in consumer spending. In this operating environment, Toyota
Industries undertook efforts to ensure customer trust through a dedication to quality as well as to expand sales by
responding flexibly to market trends.
As a result, total consolidated net sales amounted to 1,675.1 billion yen, a decrease of 21.7 billion yen (1%) from fiscal
2016. Despite posting robust sales, net sales was negatively affected by exchange rate fluctuations.
(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 expanded on a global basis, with Europe, North America and Japan registering strong sales
among developed countries and China posting an increase among emerging countries. Amid such operating conditions,net sales of the Automobile Segment totaled 562.6 billion yen, an increase of 6.1 billion yen, or 1%. Operating profit
amounted to 24.9 billion yen, a decrease of 7.8 billion yen (24%) from fiscal 2016.
Within this segment, net sales of the Vehicle Business amounted to 73.1 billion yen, an increase of 3.0 billion yen, or 4%,
due to increases in sales of the Vitz (Yaris overseas) and RAV4.
Net sales of the Engine Business totaled 90.0 billion yen, an increase of 11.4 billion yen, or 15%. Despite a decrease insales of KD diesel engines, sales of GD diesel engines increased.
Net sales of the Car Air-Conditioning Compressor Business totaled 334.7 billion yen, a decrease of 8.2 billion yen, or 2%.
The decrease was attributable mainly to the impact of exchange rate fluctuations despite an increase in unit sales globallyin Japanese, European, Chinese, North American and other markets.
Net sales of Electronics Parts, Foundry and Others Business totaled 64.7 billion yen, on par with the previous fiscal.
Despite a decrease in sales of Foundry, sales of Electronics Parts increased.

-3-

Materials Handling Equipment
The materials handling equipment market as a whole continued to expand globally due mainly to increases in unit sales in
Europe and North America as well as a recovery in China, although unit sales in Japan were on par with the previous fiscal
year. Amid this operating climate, Toyota Industries strengthened production and sales structures and rolled out new
products matched to respective markets. In November 2016, Toyota Industries commenced sales of the new 1.0- to 3.5ton electric lift trucks, "gene B". Net sales of the materials handling equipment totaled 988.1 billion yen, a decrease of 31.3
billion yen, or 3%. The decrease was attributable mainly to the impact of exchange rate fluctuations despite an increase inunit sales in European, Japanese and other markets. Operating profit amounted to 89.4 billion yen, a decrease of 2.3
billion yen (3%) from fiscal 2016. In addition, in order to respond to structural changes in the logistics industry andstrengthen its logistics solutions business on a global scale, Toyota Industries concluded an agreement to acquire Bastian
Solutions LLC, a major North American materials handling systems integrator, and the Netherland-based Vanderlande
Industries Holding B.V., the global market leader for value-added logistic process automation, in February 2017 and March
2017, respectively.
Textile Machinery
The textile machinery market was on a recovery path mainly in the primary markets of China and other emerging countries
in Asia. Net sales of the Textile Machinery Segment totaled 66.2 billion yen, an increase of 0.6 billion yen (1%). Sales of Air
jet Loom increased while those of weaving machinery recorded a decrease. Operating profit amounted to 6.8 billion yen,
an increase of 0.3 billion yen (5%) from fiscal 2016.
Others
Net sales of the Others Segment totaled 58.0 billion yen, an increase of 2.8 billion yen (5%). Operating profit amounted to
6.0 billion yen, an increase of 0.7 billion yen (14%) from fiscal 2016.
(3) Operating profit
Operating profit for fiscal 2017 was 127.3 billion yen, a decrease of 9.7 billion yen (7%) from fiscal 2016. This was due
mainly to the impact of exchange rate fluctuations and an increase in labor costs despite cost reduction efforts
throughout the Toyota Industries Group, sales efforts and decreases in depreciation costs.
(4) Profit before income taxes
Profit before income taxes amounted to 181.9 billion yen, a decrease of 9.4 billion yen (5%) from fiscal 2016. This wasdue mainly to dividends income of 61.8 billion yen, a decrease of 3.2 billion yen, or 5%, from fiscal 2016.
(5) Profit attributable to owners of the parent
Profit attributable to owners of the parent totaled 131.3 billion yen, a decrease of 62.9 billion yen (32%) from fiscal 2016.
Earnings per share— basic was 420.78 yen compared with 618.34 yen in fiscal 2016.
2. Consolidated Financial Condition
Total assets increased 241.0 billion yen from the end of the previous fiscal year to 4,558.2 billion yen due mainly to anincrease in market value of investment securities. Liabilities amounted to 2,241.7 billion yen, an increase of 93.8 billion
yen from the end of the fiscal year due mainly to an increase in corporate bonds and loans. Net assets amounted to2,316.4 billion yen, an increase of 147.1 billion yen from the end of the previous fiscal year.

-4-3. Liquidity and Capital Resources
Toyota Industries' financial policy is to ensure sufficient financing and liquidity for its business activities and to maintainstrong consolidated financial position. Currently, funds for capital investments and other long-term capital needs areprovided from retained earnings and long-term debt, and working capital needs are met through short-term loans. Longterm debt financing is carried out mainly through issuance of corporate bonds and loans from financial institutions.
Toyota Industries continues to maintain its solid financial condition. Through the use of such current assets as cash andcash equivalents and short-term investments, as well as free cash flows and funds procured 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, as well as for future investments.
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 thefunds of subsidiaries in North America and Europe, respectively. Through close cooperation among the Company, TINA
and TIFI, we strive for efficient, unified fund management on a global consolidated basis.
4. Cash Flows
Cash flows from operating activities increased by 239.0 billion yen in fiscal 2017, due mainly to posting profit before
income taxes of 181.9 billion yen. Net cash provided by operating activities decreased by 9.0 billion yen compared with anincrease of 248.0 billion yen in fiscal 2016.
Cash flows from investing activities resulted in a decrease in cash of 86.9 billion yen in fiscal 2017, attributable primarily to
an increase in payments for purchases of property, plant and equipment amounting to 164.2 billion yen. Net cash used ininvesting activities decreased by 445.3 billion yen compared with a decrease of 532.2 billion yen in fiscal 2016.
Cash flows from financing activities resulted in an increase in cash of 0.7 billion yen in fiscal 2017, due mainly to proceedsfrom issuance of corporate bonds of 80.0 billion yen.
After adding translation adjustments and cash and cash equivalents at beginning of period, cash and cash equivalents asof March 31, 2017 stood at 243.6 billion yen, an increase in 151.3 billion yen (164%) over fiscal 2016.
5. Investment in Property, Plant and Equipment
During fiscal 2017, Toyota Industries made a total investment of 176,999 million yen in property, plant and equipment(including materials handling equipment for lease) in order to launch new products, streamline and upgrade production
equipment.
In regard to investment in property, plant and equipment by the reporting segments, investment in property, plant andequipment in Automobile, Materials Handling Equipment, Textile Machinery and Others were 46,661 million yen, 123,923
million yen, 2,733 million yen and 3,682 million yen.

-5-

6. Strategies and Outlook
Outlook for Results for Fiscal 2018
With regard to the future economic outlook, the global economy is expected to continue growing. However, uncertainties
surrounding the business environment preclude optimism, as the future trend in monetary easing in each country,
protectionist policies spreading in developed countries, a further deceleration of the Chinese economy and the occurrenceof terrorism and conflicts around the world require close monitoring.
Amid this challenging environment, Toyota Industries will continue to undertake concerted efforts to strengthen its
management platform and raise corporate value.
First of all, we will work to bolster our management platform so that we can respond quickly to rapid changes in thebusiness environment. Specifically, based on the concept of quality first, we aim to build a stronger production foundation
by maintaining and improving productivity on a global basis. Moreover, we will strive to build a lean corporate structure bythoroughly eliminating waste, by setting lead times in terms of quality, cost and products throughout the global supply
chain that includes suppliers and business partners, and by improving productivity in administrative sections. At the sametime, we will strengthen risk management in order to quickly and accurately respond to changes in world affairs.
In addition to the above measures, we will work to hone our manufacturing capabilities, which constitute our strengths, andfurther strengthen product competitiveness by not only developing technologies based on the keyword of the 3Es, which
we define as "energy", "environmental protection" and "ecological thinking", but also by differentiating our productionengineering technologies. Moreover, we aim to leverage new growth potentials by taking advantage of such structuralchanges as progress in electrification and the rapid growth of e-commerce in the automobile and materials handlingequipment markets on a global scale, by creating and providing customers with new values and by utilizing the Internet ofThings (IoT) and artificial intelligence (AI). To support such business development, we will continue our efforts to create aworkplace climate that enables diverse human resources to fully demonstrate their abilities and develop personnel who
can play active roles in the global arena.
In other areas, Toyota Industries will create a workplace climate that places top priority on safety; ensure thoroughgoingcompliance, including adherence to laws and regulations; and proactively participate in social contribution activities. By
carrying out these initiatives, we aim to broadly meet the trust of society and grow harmoniously with society. With regard
to protection of the global environment, we will undertake Group-wide initiatives toward the realization of "a zero CO2emission society in 2050".
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 an enriched lifestyle and comfortable society as described in Vision 2020.
7. Dividend Policy
Toyota Industries is to meet the expectations of shareholders for continuous dividends while giving full consideration tobusiness performance, funding requirements, the dividend payout ratio and other factors.
Toyota Industries' Ordinary General Meeting of Shareholders, held on June 23, 2017, approved a year-end cash dividendof 65.0 yen per share. Including the interim cash dividend of 60.0 yen per share, cash dividends for the year totaled 125.0
yen per share.
Toyota Industries will use retained earnings to improve the competitiveness of its products, augment production capacity inJapan and overseas, 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).

-6-

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. As the Company's policy, discretion to pay interim cash dividends is determined by
the Board of Directors while payment of year-end cash dividends is subject to approval at the Ordinary General Meeting of
Shareholders.
8. Risk Information
The following represent risks that could have a material impact on Toyota Industries' financial condition, business results
andshare prices. Toyota Industries judged the following as future risks as of March 31, 2017.

(1) Principal Customers
Toyota Industries' automobile and engine products are sold primarily to Toyota Motor Corporation ("TMC"). In fiscal
2017, net sales to TMC accounted for 11.6% of consolidated net sales. Therefore, TMC's vehicle sales could have an
impact on Toyota Industries' business results. As of March 31, 2017, 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 no assurance Toyota Industries can allocate sufficient future funds
necessary for the development of appealing new products; no assurance that product sales will be successful, as
forecasts of products supported by the market may not always be accurate; and no assurance 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 overseas, 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, deterioration of-7-

profitability and decrease in share prices of Toyota Industries.
(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 disagreement between Toyota Industries and its
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.
(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.
(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 and wars, 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 asa 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
Toyota Industries resolved at the meeting of the Board of Directors held on December 20, 2016 that Toyota Advanced
Logistics Solutions, Inc., a U.S. subsidiary of Toyota Industries, would acquire major North American materials handlingsystems integrator Bastian Solutions, LLC (U.S. - based).
In addition, Toyota Industries resolved at the meeting of the Board of Directors held on March 22, 2017 that Toyota
Industries Europe AB, a holding company of Toyota Industries for materials handling equipment business in Europe, would
acquire Vanderlande Industries Holding B.V. (Netherlands - based), the global market leader for value-added logistic
process automation.
For the details about these acquisitions, please see "36. Subsequent events".
10. Parallel disclosure information
The major items in the consolidated financial statements prepared in accordance with IFRS which are different from theconsolidated financial statements prepared in accordance with Generally Accepted Accounting Principles in Japan("Japanese GAAP") are as follows.
(1) Net amounts of supply-for-a-fee transactions
Regarding supply-for-a-fee transactions, net sales and cost of sales are recorded at the time of repurchase underJapanese GAAP; under IFRS, on the other hand, only net amounts of machining cost equivalents are recognized asrevenue. As a result, net sales decreased 561,920 million yen and cost of sales decreased 561,920 million yen for the
fiscal year ended March 31, 2017.
(2) Goodwill
Goodwill is amortized principally over less than 20 years on a straight-line basis under Japanese GAAP; under IFRS,
on the other hand, it has not been amortized since the transition date, while an impairment test is conducted for every
period. As a result, selling, general and administrative expenses decreased 7,577 million yen for the fiscal year ended
March 31, 2017.

-9-

11. Toyota Industries' Relationship to Toyota Motor Corporation
Due to historical reasons, Toyota Industries maintains close relationships with Toyota Motor Corporation ("TMC") andToyota Group companies in terms of capital and business dealings.
(1) Historical BackgroundIn 1933, Kiichiro Toyoda, the eldest son of founder Sakichi Toyoda and then Managing Director of Toyota Industries(then Toyoda Automatic Loom Works, Ltd.), established the Automobile Department within the Company based on his
resolve to manufacture Japanese-made automobiles. In 1937, the Automobile Department was spun off and became
an independent company, Toyota Motor Co., Ltd. (the present Toyota Motor Corporation).
(2) Capital RelationshipIn light of this historical background, Toyota Industries and TMC have maintained a close capital relationship. As of
March 31, 2017, Toyota Industries holds 7.59% (229,274 thousand shares) of TMC's total shares in issue. Likewise, asof the same date, TMC holds 24.67% 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 fiscal 2017, our net sales to TMC, on a stand-alone basis accounted for 11.6% 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)Transition date
(April 1, 2015)

FY2016(As of March 31,
2016)

FY2017(As of March 31,
2017)

6
7
8
9

248,706
475,415
92,189
192,947
8,640
37,926
1,055,825

92,399624,240
273,410
195,982
7,170
38,9581,232,161

243,685
646,542
174,301
194,427
21,10642,356
1,322,420

10
11
7740,171203,042999

815,399
189,207
1,005

833,329
185,813149

12

14,332

13,593

8,673

8
18
25

2,677,218
22,28331,812
3,729
3,693,589
4,749,415

2,028,284
11,651
22,5993,379
3,085,121
4,317,282

2,161,509
18,12923,8004,386
3,235,791
4,558,212

Notes
AssetsCurrent assets
Cash and cash equivalents
Trade receivables and other receivables
Other financial assets
Inventories
Income tax receivables
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Goodwill and intangible assets
Trade receivables and other receivables
Investments accounted for by the equity
methodOther financial assets
Net defined benefit assets
Deferred tax assets
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)Transition date
(April 1, 2015)

FY2016(As of March 31,
2016)

FY2017(As of March 31,
2017)354,643
146,789
138,667
15,225
5,653
19,072680,051355,882
190,844
75,44048,051
9,336
20,186
699,741

387,333
311,663
71,807
11,163
7,397
21,237
810,603

14
15
18
17
25

625,382
121,632
88,062
6,245
756,584
14,927
1,612,834
2,292,886

711,424
106,248
88,942
6,888
517,854
16,8681,448,227
2,147,969

665,890
79,37592,5526,479
567,803
19,0391,431,140
2,241,744

19
19
19
19
19

80,462
105,592
705,521(41,509)
1,541,262

80,462
105,517855,317(41,266)
1,098,627

80,462
105,417954,503(59,272)
1,159,181

2,391,330

2,098,658

2,240,293

65,1982,456,528
4,749,415

70,6552,169,313
4,317,282

76,174
2,316,467
4,558,212

Notes
Liabilities and Equity
Liabilities
Current liabilities
Trade payables and other payables
Corporate bonds and loans
Other financial liabilities
Accrued income taxes
Provisions
Other current liabilities
Total current liabilities
Non-current liabilities
Corporate bonds and loans
Other financial liabilities
Net defined benefit liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities
EquityShare of equity attributable to ownersof the parent
Capital stock
Capital surplus
Retained earnings
Treasury stock
Other components of shareholders' equity
Total share of equity attributable to owners of
the parent
Non-controlling interests
Total equity
Total liabilities and equity

13
14
15
17

- 12 -

[Consolidated Statement of Profit or Loss](Millions of yen)
Notes
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Other income
Other expenses
Operating profit
Financial income
Financial expenses
Share of profit of investments accounted
for by the equity method
Profit before income taxes
Income taxes
Profit from continuing operations
Profit from discontinued operations
ProfitProfit attributable to:
Owners of the parent
Non-controlling interests
Earnings per share
Basic:
Continuing operations
Discontinued operations
Earnings per share— basic (yen)Diluted:Continuing operations
Discontinued operations
Earnings per share— diluted (yen)FY2016(April 1, 2015
– March 31, 2016)

FY2017(April 1, 2016
– March 31, 2017)24
24

1,696,856(1,291,859)
404,997(266,894)
10,879(11,956)
137,026
67,264(13,536)

1,675,148(1,278,378)
396,769(268,354)
11,411(12,480)
127,345
63,734(10,067)

12

632

974

191,386(52,865)
138,52161,435
199,956

181,986(44,420)
137,565－
137,565

194,270
5,685

131,398
6,167

422.80195.54618.34420.78－420.78422.79195.54618.33－－－21, 2221, 22
23
23

25
31

26

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

- 13 -

[Consolidated Statement of Comprehensive Income](Millions of yen)
Notes
ProfitOther comprehensive income:Items not to be reclassified into profit or loss
Net changes in revaluation of FVTOCI
financial assets
Remeasurements of defined benefit plans
Other comprehensive income of affiliates
accounted for by the equity method
Total items not to be reclassified into profit orloss
Items that can be reclassified into profit or loss
Translation adjustments of foreign operations
Cash flow hedges
Other comprehensive income of affiliates
accounted for by the equity method
Total items that can be reclassified into profit orloss
Total other comprehensive income
Comprehensive income
Total comprehensive income attributable to:
Owners of the parent
Continuing operations
Discontinued operations
Total owners of the parent
Non-controlling interests

FY2016(April 1, 2015
– March 31, 2016)

FY2017(April 1, 2016
– March 31, 2017)

199,956

137,565

27, 29(409,198)

77,80218, 27(7,022)

4,862

(18)

21

(416,239)

82,68627
27, 29(35,492)(556)(18,913)
1,242

27

(689)

162

(36,737)(17,509)(452,977)(253,021)

65,177
202,743(316,549)
61,475(255,074)
2,053

197,355－
197,355
5,387

27

31

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 ofshareholders' equity
Notes

Capitalstock

CapitalsurplusRetainedearnings

Treasurystock

Net changes inrevaluation of
FVTOCIfinancial assets

Remeasurementsof defined benefit
plans

80,462

105,592

705,521(41,509)

1,541,869

Profit－－194,270－－－

Other comprehensive income

－

－

－

－

(409,158)(6,830)

Balance at April 1, 2015

Total comprehensive income

－

－

－

194,270－(409,158)(6,830)

Repurchase of treasury stock

19

－

－

－

(20)

－

－

Disposal of treasury stock

19

－

(30)

－

263

－

－

Dividends
Changes in ownership interest of
subsidiaries
Changes in non-controlling interests asa result of change in scope of
consolidation
Reclassified into retained earnings

20

－

－

(37,699)

－

－

－

－

(44)

－

－

－

－

－

－

－

－

－

－
6,830

－

－

(6,774)－(56)

Other increases (decreases)

－

－

－

－

－

－

Total transactions with owners

－

(75)

(44,474)

242

(56)

6,830

80,462

105,517855,317(41,266)

1,132,655

－

－

－

－

－

77,521

4,811

Balance at March 31, 2016
Profit－－131,398

Other comprehensive income

－

－

－

Total comprehensive income－－

131,398－

77,521

4,811

Repurchase of treasury stock

19

－

(36)

－

(18,011)－－

Disposal of treasury stock

19

－

(0)

－

5

－

－

Dividends
Changes in ownership interest of
subsidiaries
Changes in non-controlling interests
as a result of change in scope of
consolidation
Reclassified into retained earnings

20

－

－

(37,609)

－

－

－

－

(62)

－

－

－

－

－

－

－

－

－

－
(4,811)

－

－

5,395

－

(584)

Other increases (decreases)

－

－

－

－

－

－

Total transactions with owners

－

(99)

(32,213)(18,005)(584)(4,811)80,462

105,417954,503(59,272)

1,209,592－

Balance at March 31, 2017

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 shareholders' equity

Noncontrollinginterests

Total equity

2,391,330

65,1982,456,528

194,270

5,685

199,956(449,344)(449,344)(3,632)(452,977)

Notes Translation
adjustmentsof foreign
operations

Cash flow
hedgesSubscription
rights toshares

－

(679)

72

1,541,262

－

－

－

－

(32,799)(556)－

Balance at April 1, 2015
ProfitOther comprehensive income
Total comprehensive income

Total

Total

(32,799)(556)－(449,344)(255,074)

2,053(253,021)

Repurchase of treasury stock

19

－

－

－

－

(20)

－

(20)

Disposal of treasury stock

19

－

－

－

－

232

－

232

Dividends
Changes in ownership interest of
subsidiaries
Changes in non-controlling interests asa result of change in scope of
consolidation
Reclassified into retained earnings

20

－

－

－

－

(37,699)(1,670)(39,369)

－

－

－

－

(44)

117

72

－

－

－

－

－

5,059

5,059

－

－

－

6,774

－

－

－

Other increases (decreases)

－

－

(65)

(65)

(65)

(103)

(168)

Total transactions with owners

－

－

(65)

6,709

(37,597)

3,403(34,193)(32,799)(1,235)

6

1,098,627

2,098,658

70,6552,169,313

－

－

－

－

131,398

6,167

137,565(17,618)

1,242－

65,95765,957(779)

65,177(17,618)

1,242－

65,957

197,355

5,387

202,743(18,048)

Balance at March 31, 2016
ProfitOther comprehensive income
Total comprehensive income
Repurchase of treasury stock

19

－

－

－

－

(18,048)－

Disposal of treasury stock

19

－

－

－

－

5

－

5

Dividends
Changes in ownership interest of
subsidiaries
Changes in non-controlling interests asa result of change in scope of
consolidation
Reclassified into retained earnings

20

－

－

－

－

(37,609)(2,290)(39,899)

－

－

－

－

(62)

30

(31)

－

－

－

－

－

30

30

－

－

－

(5,395)

－

－

－

－

－

(6)

(6)

(6)

2,360

2,354

－

－

(6)

(5,402)(55,721)131(55,589)(50,417)

6－

1,159,181

2,240,293

76,174

2,316,467

Other increases (decreases)
Total transactions with owners
Balance at March 31, 2017

- 16 -

[Consolidated Statement of Cash Flows](Millions of yen)
Notes
Cash flows from operating activities:
Profit before income taxes
Profit before income taxes from discontinued
operations
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 otherpayablesOthersSubtotalInterest 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 andequipment
Proceeds from sales of property, plant andequipment
Payments for purchases of investment securities
Proceeds from sales of investment securities
Payments for acquisition of subsidiaries' stock
resulting in change in scope of consolidation
Proceeds from sales of subsidiaries' stock
resulting in change in scope of consolidation
Payments for loans madeProceeds from collection of loans
Payments for bank deposits
Proceeds from withdrawals of bank deposits
Payments for transfer of business
OthersNet cash used in investing activities

31

31

5

- 17 -FY2016(April 1, 2015
– March 31, 2016)

FY2017(April 1, 2016
– March 31, 2017)

191,386

181,986

93,025－

143,836
2,034(66,367)
10,588148,957
2,136(62,862)
8,111

(632)

(974)

(7,602)(3,010)(25,448)(16,249)

9,189

28,589(112,404)
237,607
66,364(10,401)(45,521)248,049(16,772)
269,912
63,186(8,374)(85,630)
239,094(150,598)(164,225)

10,044

10,167(716)
375(30,612)
7,591(9,717)(2,855)140,097

－

(570)
914
(358,634)
120,735(277,643)(6,523)(532,238)

(607)
958
(373,122)
480,742(3,269)(11,691)(86,925)

(Millions of yen)
Notes
Cash flows from financing activities:
Payments for acquisition of subsidiaries' stock
not resulting in change in scope of consolidation
Proceeds from sales of subsidiaries' stock notresulting in change in scope of consolidation
Net Increase (decrease) in short-term loans(within three months)
Proceeds from short-term loans payable(over three months)
Repayments of short-term loans payable(over three months)
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of corporate bonds
Repayments of corporate bonds
Payments for repurchase of treasury stock
Cash dividends paid
Cash dividends paid to non-controlling interests
Proceeds from payments by non-controllinginterests
OthersNet cash provided by financing activities
Translation adjustments of cash and cash
equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of
periodCash and cash equivalents at end of period

FY2016(April 1, 2015
– March 31, 2016)20

6

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

- 18 -FY2017(April 1, 2016
– March 31, 2017)

(155)

(131)

524

463

23,83916,384

127,11036,921(68,105)(114,087)

153,980(38,574)
25,481(46,965)(20)(37,699)(1,670)63,242(36,084)
80,068(20,000)(18,048)(37,609)(2,290)

102

2,245

(13,352)
124,495

29,714789

3,386(1,672)(156,307)

151,286

248,706

92,39992,399243,685

Notes to Consolidated Financial Statements
1. Nature of Operations
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
businesses of 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
Reporting Standards" 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 ReportingStandards (IFRS) as permitted by the provision of Article 93 of the Ordinance.
Toyota Industries prepared the first consolidated financial statements in accordance with IFRS from the current fiscal
year (from April 1, 2016 to March 31, 2017). The date of the transition to IFRS is April 1, 2015. In transitioning to IFRS,
Toyota Industries applies IFRS 1 "First-time Adoption of International Financial Reporting Standards" ("IFRS 1"), andthe impact of the transition to IFRS has on its financial position, operating results and cash flows is stated in "37.
Disclosure on Transition to IFRS".
The consolidated financial statements have been approved by Akira Onishi, president of the Company, on June 23,
2017.
(2) Basis of Measurement
As detailed in "3. Significant Accounting Policies", the Company's 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 primaryeconomic 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) Estimates and Use of Judgments
In the preparation of the IFRS-compliant consolidated financial statements, management of the Company is required
to make 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 from those 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
adjustments in the subsequent consolidated financial statements is as follows.
11. Goodwill and Intangible Assets (impairment losses)
18. Employee Benefits (assumptions based on actuarial calculation)(5) Early Adoption of New Accounting Standards
Toyota Industries has early adopted IFRS 9 "Financial Instruments" (revised in July 2014).

- 19 -

(6) Accounting Standards and Interpretations Not Yet Adopted by the Company
The principal accounting standards and interpretations issued or amended prior to the approval date of theconsolidated financial statements that are not yet adopted by Toyota Industries as of the reporting date are as follows.
Toyota Industries is currently evaluating the potential impact of adopting these standards and interpretations on its
financial position and business performance, which cannot be estimated as of the reporting date.
Mandatory effective
To be
date
adopted by(Fiscal year beginning
the Company
on or after)

IFRS

Title

IFRS 15

Revenue from Contracts
with Customers

January 1, 2018

FY2019IFRS 16

LeasesJanuary 1, 2019

FY2020Description of standards andamendments
Accounting transactions and disclosure
demand for revenue recognition
Accounting transactions and disclosure
demand for leases

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 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 the result 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 obligations 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 the- 20 -

date of acquisition is recognized as goodwill and included in the carrying value of the investment, and is not amortized.
(2) Foreign Currencies(i) Foreign currency transactions
Foreign currency transactions are converted into the functional currency of Toyota Industries 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. Leased assets are depreciated over the shorter of the lease term or their estimateduseful lives, unless it is reasonably certain that Toyota Industries will acquire ownership by expiration of the lease term.
The estimated useful 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.
Intangible assets acquired separately 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.
(ii) Internally generated intangible assets
Expenditure on research is recognized as an expense in the consolidated statements 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
statements 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.
(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
Estimated useful lives and amortization methods are reviewed at each reporting date, and any revisions areapplied as revisions to accounting estimates prospectively.
(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".

- 22 -

(7) Leases
Toyota Industries determines whether or not a contract contains a lease based on the substance of such contract byexamining whether the performance of the contract relies on using specific assets or an asset group and whether thecontract gives the right to use the asset.
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.
(i) Leases as lessee
Finance leases are recorded as an asset and a liability at the lower of the fair value of the asset and the present
value of the minimum lease payments on the consolidated statements of financial position, as calculated atcommencement of the lease term. Lease assets are depreciated on a straight-line basis based on accounting
policies applied to the assets. Financial expenses are allocated to each period over the lease term so that theinterest rate will be proportional to the liability balance.
Payments under operating leases are recognized on a straight-line basis over the period of the lease.
(ii) Leases as lessor
An investment asset held under a financial lease is recorded as a receivable at an amount equal to the net
investment in the lease. If Toyota Industries is a manufacturer or distributor lessor in a lease, selling profit or loss ina financial lease is recognized in accordance with the accounting policy it follows for sales of goods (see "(12)Profits"). Financial income is recognized from commencement of the lease term based on the effective interest
method. If Toyota Industries is not a manufacturer or distributor lessor in a lease, financial income is recognizedfrom commencement of the lease term based on the effective interest method. The interest rate implicit in thelease is the discount rate that causes the aggregate present value of the minimum lease payments receivable andthe unguaranteed residual value to be equal to the sum of the fair value of the leased asset and any initial direct
costs.
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.
(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. Prior 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.

- 23 -

(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 adopts 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.
(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 are inprinciple recognized 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 statements of financial position is directly transferred
to retained earnings.

- 24 -

(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.
(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 and interest ratecurrency swaps.
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 only 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 statements 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) Profits
Profits are measured at the fair value of the consideration received or receivables for goods and services provided
less sales related taxes.
(i) Sales of goods
Revenue from the sales of goods is recognized when the significant risks and economic values of ownership of thegoods have been transferred to the customer; Toyota Industries has neither continuing managerial involvement nor
effective control over the goods sold; the amount of revenue and the costs incurred or to be incurred in respect of thetransaction can be measured reliably; and the collectibility of consideration is high. The timing of transferring risks andrewards of ownership of goods varies depending on the conditions of individual terms of sales contracts. Normally,
revenue is recognized when a customer accepts goods after inspection.
Toyota Industries provides incentives to distributors. If these incentives are discounts to distributors, they are
estimated and recognized when products are sold and recorded as reduction to revenue.
(ii) Provision of services
Revenue from the provision of services is recognized over the terms of individual service contracts.
(iii) Multiple-element transactions
Toyota Industries enters into multiple-element arrangements that include various elements such as products andmaintenance. If elements of a multiple-element arrangement meet the following criteria, Toyota Industries allocatesthe arrangement consideration to individual elements based on each component's relative fair value and recognizes
revenue for each element.
Each element has stand-alone value to the customer.
The fair value of each element can be reliably measured.
If the above criteria are not met, revenue as one stand-alone accounting unit is deferred until undelivered products orservices are delivered.

- 25 -

(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.
(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".

- 26 -

(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.
(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) Discontinued operations
Operations that have been already disposed of or operations that are maintained for sales are classified as
discontinued operations.

- 27 -

4. Segment Information
The operating segments reported below are the segments of Toyota Industries for which separate financial information isavailable and for which operating profit (loss) amounts are evaluated regularly by executive management in deciding how
to allocate resources and in 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 their economic characteristics
such as net sales. The main products and services of each segment are as follows.
Segment
Automobile
Materials Handling
Equipment
Textile Machinery

Main products and services of each segment
Vehicles, diesel and gasoline engines, car air-conditioning compressors, electronic
components for automobiles, foundry parts for engines
Lift trucks, warehouse trucks, automated storage and retrieval systems, aerial work
platforms
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.

- 28 -

(1) Operating segment information(i) Sales, profits or losses, assets, liabilities and other significant monetary information
Transition date (April 1, 2015)(Millions of yen)
Automobile

Materials
Handling
Equipment

TextileMachinery

Others(Note 1)

Total

Adjustments
Consolidated(Note 2)

Segment assets
576,013
1,041,977
64,060357,894
2,039,946
2,709,469
4,749,415(Notes) 1. "Others" represents businesses not included in the reporting segments, and its primary service is theland transportation. It also includes the assets of the subsidiary divested in the fiscal year ended March
31, 2016. Please refer to "31. Discontinued Operations" for details.
2. Breakdown of adjustments"Adjustments" for "Segment assets" includes corporate assets. Corporate assets mainly consist of theCompany's cash and deposits as well as investment securities.
Other significant items(Millions of yen)
Automobile

Materials
Handling
Equipment

TextileMachinery

Others(Note)

Total

Adjustments Consolidated

Investments accounted
for by the equity
6,424
7,852
49
6
14,332
14,332－
method(Note) "Others" represents businesses not included in the reporting segments, and its primary service is the landtransportation.
FY2016 (April 1, 2015– March 31, 2016)(Millions of yen)

Sales
Outside customer
sales
Inter-segment
transactions
Total

Automobile

Materials
Handling
Equipment

TextileMachinery

Others(Note 1)

556,505

1,019,438

65,68455,228

1,696,856－

1,696,856

25,1622,450

224

23,75051,588(51,588)－581,668

1,021,889

65,90878,9791,748,445(51,588)

1,696,856

Total

Adjustments Consolidated(Note 2)
(Note 3)

Segment profit

32,77891,719

6,561

5,306

136,365660

137,026

Segment assets

566,700

1,291,610

49,768238,279

2,146,358

2,170,924

4,317,282

Financial income

67,264

Financial expenses(13,536)

Share of profit (loss) ofinvestments accounted
632
for by the equity
methodProfit before income
191,386
taxes(Notes) 1. "Others" represents businesses not included in the reporting segments, and its primary service is the landtransportation.
2. Breakdown of adjustments
660 million yen included in "Adjustments" for "Segment profit" 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.
3. "Segment profit" reconciles to operating profit disclosed in the consolidated statements of profit or loss.

- 29 -

Other significant items(Millions of yen)

Depreciation andamortization
Impairment losses(amount in parenthesis
has been reversed)
Investments accounted
for by the equity
methodAutomobile

Materials
Handling
Equipment

TextileMachinery

54,63277,604

4,034

7,565

143,836－

143,836

－

2,034

－

－

2,034

－

2,034

5,734

7,803

49

6

13,593－

13,593

Others(Note)

Total

Adjustments Consolidated

Increase in property,
plant and equipment
35,169128,502
5,937
7,393
177,003
177,003－and intangible assets(Note) "Others" represents businesses not included in the reporting segments, and its primary service is the landtransportation.

- 30 -

FY2017 (April 1, 2016– March 31, 2017)(Millions of yen)
Automobile

Materials
Handling
Equipment

TextileMachinery

Others(Note 1)

Total

Adjustments Consolidated(Note 2)
(Note 3)

Sales
Outside customer
562,672
988,148
66,28858,0391,675,148
1,675,148－
salesInter-segment
23,816
1,142
210
23,40848,578(48,578)－transactions
Total
586,489989,290
66,49881,4481,723,727(48,578)
1,675,148
Segment profit
24,964
89,475
6,868
6,051
127,359(14)
127,345
Segment assets
540,453
1,352,270
46,978286,030
2,225,732
2,332,479
4,558,212
Financial income
63,734
Financial expenses(10,067)
Share of profit (loss) ofinvestments accounted
974
for by the equity
methodProfit before income
181,986
taxes(Notes) 1. "Others" represents businesses not included in the reporting segments, and its primary service is the landtransportation.
2. Breakdown of adjustments(14) million yen included in "Adjustments" for "Segment profit" 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.
3. "Segment profit" reconciles to operating profit disclosed in the consolidated statements of profit or loss.
Other significant items(Millions of yen)

Depreciation andamortization
Impairment losses(amount in parenthesis
has been reversed)
Investments accounted
for by the equity
methodAutomobile

Materials
Handling
Equipment

TextileMachinery

54,524

88,183

3,235

3,013

148,957－

148,957

19

2,116

－

－

2,136

－

2,136

263

8,354

49

6

8,673

－

8,673

Others(Note)

Total

Adjustments Consolidated

Increase in property,
plant and equipment
47,200145,584
3,355
4,195
200,334
200,334－
and intangible assets(Note) "Others" represents businesses not included in the reporting segments, and its primary service is the landtransportation.

- 31 -

(2) Sales by productOutside customer sales by product consist of the following.
(Millions of yen)
FY2016FY2017(April 1, 2015– March 31, 2016) (April 1, 2016– March 31, 2017)
Sales:
Automobile

556,505

562,672

Vehicle70,18073,133Engine78,62790,062Car air-conditioning compressor

342,992

334,744

Electronic components and foundry parts

64,70664,731

1,019,438

988,148

Textile Machinery

65,684

66,288Others55,22858,0391,696,856

1,675,148

Materials Handling Equipment

Total(3) Geographical information
Outside customer sales(Millions of yen)
FY2016FY2017(April 1, 2015– March 31, 2016) (April 1, 2016– March 31, 2017)
Sales:
Japan

514,046

536,872

U.S.A.

499,340

452,334

Others683,470

685,941

Total

1,696,856

1,675,148(Note) Net sales are provided by location of customer.
Non-current assets(Millions of yen)Transition date
(April 1, 2015)

FY2016(As of March 31, 2016)

FY2017(As of March 31, 2017)

Non-current assets:
Japan

451,040

381,578

394,209

U.S.A.

205,180

337,212345,869

Others290,291

288,780

283,153

Total

946,512

1,007,571

1,023,232(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 to DENSO Corporation and its subsidiaries. Sales from DENSO amounted to 324,548
million yen and 338,323 million yen for the fiscal years ended March 31, 2016 and 2017, respectively and were
included in the outside customer sales of the Automobile, Materials Handling Equipment and Others segments.
Toyota Industries sells goods and provides services to Toyota Motor Corporation and its subsidiaries. Sales fromToyota Motor Corporation amounted to 197,903 million yen and 205,938 million yen for the fiscal years ended March
31, 2016 and 2017, respectively and were included in the outside customer sales of the Automobile, Materials
Handling Equipment and Others segments.

- 32 -

5. Business Combinations
The summary of a business combination through acquisition in the fiscal year ended March 31, 2016 is as follows.
(Business combination through acquisition)(1) Outline of business combination(i) Name and business of acquiree
Name: Toyota Motor Credit Corporation (hereinafter, "TMCC")
Business content: Business of the Commercial Finance Department (sales financing and other businesses for
TOYOTA-brand materials handling equipment in the United States)(ii) Main purpose of business combination
By means of acquiring TMCC's financial assets and personnel, the Company aims to gain know-how concerning thesales financing business for materials handling equipment that TMCC has accumulated over the past 30 years in its
efforts to strengthen the sales financing business in the United States and promote full-fledged development of sales
financing business on a global scale.
(iii) Date of business combination
October 1, 2015(iv) Measure of business combination
Transfer of business involving cash and cash equivalents(v) Name of acquiree after business combination
Toyota Industries Commercial Finance, Inc.
(vi) Basis of determination of acquirer
By the reason of (2), transfer of business involving cash and cash equivalents(2) Period of the acquiree's financial results included in the consolidated financial statements
From October 1, 2015 through March 31, 2016
(3) Acquisition cost of acquiree
Consideration for acquisition (cash): 277,643 million yen
Acquisition cost: 277,643 million yen(4) Content and amount of principal acquisition-related expenses
Advisory fees and other expenses: 99 million yen
The above amount is included in "Other expenses".
(5) Amount of goodwill generated and reason for generating goodwill(i) Amount of goodwill
27,545 million yen(ii) Reason for generating goodwill
Because the acquisition cost exceeded the amount of assets acquired and net liabilities assumed, the excess amountis recorded as goodwill. The content of goodwill primarily represents synergistic effects between surplus earnings
capacity and existing businesses. In addition, goodwill is not deductible for tax purposes.

- 33 -

(6) Identified assets acquired and liabilities assumed upon business combination
Machinery and vehicles

119,091 million yen

Loans receivable related to financing business

95,132

Lease investment assets

36,558Other assets

641

Total assets

251,422

Advance received

862

Other liabilities

460

Total liabilities

1,323(Note) The amount of goodwill, as referred to under "(5) (i) Amount of goodwill", is not included in assets.
(7) Fair values of the loans acquired, contractual amount of receivables and estimated amount of uncollectible accounts
Fair values of the loans
acquiredContractual amount ofreceivables(Millions of yen)
Estimated amount of
uncollectible accounts

Loans receivable related tofinancing business

95,132

95,635502

Lease investment assets

36,55836,751

193(8) Sales and profit from the acquiree
Sales of the acquiree made from the acquisition date, which are recorded in the consolidated statements of profit or loss,
were 20,344 million yen before eliminations of inter-company transactions, and the loss was (655) million yen.
Assuming that the business combination was completed at the beginning of the fiscal year ended March 31, 2016, thesales and the profit in the consolidated statements of profit or loss would be 1,715,822 million yen and 201,628 million
yen, respectively. These figures, however, do not take into account the eliminations of inter-company transactions anddo not indicate the actual operating results if the business combination had been completed at the beginning of the fiscal
year. This pro-forma information is not subject to audit.

- 34 -

6. Cash and Cash Equivalents
Cash and cash equivalents consist of the following.
(Millions of yen)Transition date
(April 1, 2015)

FY2016FY2017(As of March 31, 2016) (As of March 31, 2017)

Cash and deposits

214,62181,804

243,685

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

34,085

10,594－

Total

248,706

92,399243,685

The balance of cash and cash equivalents on the consolidated statements of financial position as of the transition date,the end of the fiscal year ended March 31, 2016 and the end of the fiscal year ended March 31, 2017 are consistent withthe balances of cash and cash equivalents on the consolidated statements of cash flows.
These short-term investments are financial assets measured at amortized cost.
7. Trade Receivables and Other Receivables
Trade receivables and other receivables consist of the following.
(Millions of yen)Transition date
(April 1, 2015)
Trade notes and accounts receivable

FY2016FY2017(As of March 31, 2016) (As of March 31, 2017)

264,365

277,290287,627－

91,611

92,668Loans for sales financing
Other receivables

23,051

22,30722,365

Lease investment assets

193,377

238,690248,974

Others23

25

21

Elimination: Allowance for doubtful accounts(4,403)(4,679)(4,965)

Total

476,414625,246646,691

These receivables are financial assets measured at amortized cost.
Amounts by collection or settlement period consist of the following.
(Millions of yen)Transition date
(April 1, 2015)

FY2016FY2017(As of March 31, 2016) (As of March 31, 2017)

Due within 12 months

338,405

410,481427,525

Due after 12 months

138,008

214,764

219,166

Total

476,414625,246646,691- 35 -

8. Other Financial Assets(1) Outline of other financial assets
Other financial assets consist of the following.
(Millions of yen)Transition date
(April 1, 2015)
Time deposits with deposit terms of overthree months
Cash deposits for cash collection anddeposit services

FY2016FY2017(As of March 31, 2016) (As of March 31, 2017)32,652

270,498

162,668

58,250

－

－

Loans

4,835

4,360

4,225

Stock

2,636,744

1,998,888

2,140,537

19,30015,047

14,600Derivative assets
OthersTotal

17,623

12,90013,7782,769,408

2,301,695

2,335,811

Current assets

92,189273,410

174,301

Non-current assets

2,677,218

2,028,284

2,161,509

Total

2,769,408

2,301,695

2,335,811

Deposits and 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 derivatives are categorized as
financial assets measured at fair value through profit or loss (excluding items for which hedge accounting is applied).
With respect to equity instruments measured at fair value through profit or loss, there is no monetary significance.
(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
Toyota Motor Corporation

Transition date
(April 1, 2015)

FY2016FY2017(As of March 31, 2016) (As of March 31, 2017)

1,882,114

1,336,317

1,385,274

DENSO Corporation

380,370

313,842

339,718

Toyota Tsusho Corporation

125,377

100,105

132,660

Aisin Seiki Co., Ltd.

90,30187,815113,290

Towa Real Estate Co., Ltd.

68,31876,86173,056

Toyota Boshoku Corporation

11,666

14,226

20,036

JTEKT Corporation

14,657

11,407

13,508

Ibiden Co., Ltd.

12,613

8,562

10,788

Toray Industries, Inc.

7,235

6,891

7,091

Aichi Steel Corporation

7,768

5,999

6,026

OthersTotal

41,96042,15344,3392,642,384

2,004,183

2,145,791- 36 -

(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, 2017, thoserelating to the investment whose recognition was suspended during the fiscal year were immaterial. Cumulative profit orloss related to the disposal of financial liabilities is fully reclassified into retained earnings.
FY2016(As of March 31, 2016)(Millions of yen)
FY2017(As of March 31, 2017)

Fair value at the time of termination of recognition

448

1,758

Cumulative profit or loss related to disposal

225

892

(Note) Financial assets measured at fair value through other comprehensive income include debt instruments but
they were immaterial.
9. Inventories
Inventories consist of the following.
(Millions of yen)Transition date
(April 1, 2015)

FY2016FY2017(As of March 31, 2016) (As of March 31, 2017)

Merchandise and finished goods

86,885

93,102

92,258Work in process

41,41039,69840,735

Raw materials and supplies

64,651

63,181

61,432

Total

192,947

195,982

194,427

Expenses reclassified from inventories amount to 1,291,859 million yen and 1,278,378 million yen for the fiscal years
ended March 31, 2016 and 2017, respectively.
The amount of write-down recognized as expenses (continuing business) and the reversal amount of write-down consistof the following.
(Millions of yen)
FY2016FY2017(April 1, 2015– March 31, 2016) (April 1, 2016– March 31, 2017)
Amount of write-downReversal amount of write-down- 37 -

2,130

2,093

329

115

10. Property, Plant and Equipment(1) Increase (decrease)(Millions of yen)

Acquisition cost
Buildings
andstructures

Machineryand vehicles

Tools,
furniture andfixtures

Balance at April 1, 2015

420,553

1,066,866

159,087

123,879

53,451

1,823,838

Acquisition
Increase throughbusiness combination
Disposal

4,629

97,7739,292

597

53,869166,162950

119,696

139

2,613

－

123,400(2,654)(63,948)(10,604)

(84)

(53)

(77,345)(19,964)(14,026)(30,920)(4,119)(238)(69,269)(6,721)(41,516)(4,158)(358)(1,617)(54,373)

Decrease as a result ofchange in scope of
consolidation
Foreign currencytranslation difference
OthersConstructionin progress

Land

Total

10,271

57,7697,443

613(82,890)(6,791)

Balance at March 31, 2016

407,063

1,222,614

130,279

123,141

22,522

1,905,622

Acquisition
Increase throughbusiness combination
Disposal

7,573

121,039

5,850

201

54,324

188,989

－

－

－

－

－

－

(3,454)(62,454)(7,756)

(4)

(284)

(73,954)

－

－

－

－

－

－

(2,974)(16,144)(1,746)

(224)

(230)

(21,319)

Decrease as a result ofchange in scope of
consolidation
Foreign currencytranslation difference
OthersBalance at March 31, 2017

8,358

(222)

6,010

2,575

(50,446)(33,723)

416,566

1,264,833

132,637

125,690

25,885

1,965,613(Notes) 1. The amount related to property, plant and equipment in progress is presented as "Construction in progress".
(Notes) 2.

"Others" includes transfers from "Construction in progress" to the permanent accounts.

- 38 -

(Millions of yen)

Accumulated depreciation and accumulated impairment losses

Balance at April 1, 2015

Buildings
andstructures

Machineryand vehicles

Tools,
furniture andfixtures

Constructionin progress

Land

Total

223,167

742,243

117,313942－

1,083,667

Depreciation

13,311

101,60215,713－－

130,627

Disposal(2,277)(45,817)(9,974)－－(58,070)(9,527)(9,922)(20,288)－－(39,738)

600

1,232

3

2

－

1,838

(2,461)(18,068)(2,800)－－(23,330)

136(4,785)

(121)

－

－

(4,770)Decrease as a result ofchange in scope of
consolidation
Impairment losses(Reversal of impairment
losses)Foreign currencytranslation difference
OthersBalance at March 31, 2016

222,950

766,483

99,843945－

1,090,223

Depreciation

12,590110,897

12,331－－

135,819

Disposal(2,774)(50,259)(7,429)－－(60,463)

－

－

－

－

－

－

－

2,128

19

(16)

－

2,131

(1,296)(8,498)(1,165)－－(10,960)131(24,492)

(104)

－

－

(24,465)

231,600

796,259

103,494929－

1,132,283

Decrease as a result ofchange in scope of
consolidation
Impairment losses(Reversal of impairment
losses)Foreign currencytranslation difference
OthersBalance at March 31, 2017
(Note)

Depreciation of property, plant and equipment is included in mainly "Cost of sales" and "Selling, general andadministrative expenses" in the consolidated statements of profit or loss.

(Millions of yen)

Carrying amount
Buildings
andstructures

Machineryand vehicles

Tools,
furniture andfixtures

Balance at April 1, 2015

197,385

324,622

41,774

122,936

53,451

740,171

Balance at March 31, 2016

184,113456,130

30,436

122,196

22,522815,399

Balance at March 31, 2017

184,965

468,573

29,143

124,760

25,885

833,329

Constructionin progress

Land

Total

(2) Lease assets
The carrying amounts of finance lease assets included in property, plant and equipment consist of the following.
(Millions of yen)Transition date
(April 1, 2015)

FY2016FY2017(As of March 31, 2016) (As of March 31, 2017)

Buildings and structures

801

723

646

Machinery and vehicles

51,16144,81942,650Tools, furniture and fixtures

9,878

362

296

Total

61,84145,904

43,593- 39 -

11. Goodwill and Intangible Assets(1) Increase (decrease)(Millions of yen)

Acquisition cost

Goodwill

Balance at April 1, 2015
Acquisition
Increase throughbusiness combination
Increase throughin-house development
Decrease as a result ofchange in scope of
consolidation

95,020Intangible
assetsrecognized Development
throughassetsbusiness
combination
78,55016,358

Software

OthersTotal

43,45013,567

246,947

－

－

－

3,564

142

3,707

32,481

3,834

－

567

209

37,093

－

－

2,797

4,336

－

7,133

(38,304)－－(3,866)(24)(42,195)

Disposal
Foreign currencytranslation difference
Others－－(22)(3,208)(568)(3,799)(5,384)(5,401)

(350)

(796)

(444)

(12,378)

305

－

54

431

(710)

80

Balance at March 31, 2016

84,11976,983

18,83644,47912,171

236,589

Acquisition
Increase throughbusiness combination
Increase throughin-house development
Decrease as a result ofchange in scope of
consolidation

－

－

－

3,091

217

3,309

－

－

－

－

－

－

－

－

2,414

5,621

－

8,036

－

－

－

－

－

－

Disposal
Foreign currencytranslation difference
Others

－

－

(369)

(1,724)15(2,078)(1,607)(1,631)

(193)

(578)

(359)

(4,370)

1,184

－

0

609

221

2,016

Balance at March 31, 2017

83,69675,351

20,68951,49912,265

243,502- 40 -

Accumulated amortization and accumulated impairment losses
Intangible
assetsrecognized Development
Goodwillthroughassetsbusiness
combination
Balance at April 1, 2015
9,402
5,032
－

(Millions of yen)

Software

OthersTotal

23,693

5,775

43,904

Amortization

－

3,620

2,076

5,965

1,547

13,209

Disposal

－

－

(22)

(3,197)(568)(3,789)－－－(3,215)(792)(4,007)

－

－

－

195

－

195

－

(797)

(115)

(477)

(359)

(1,750)Decrease as a result ofchange in scope of
consolidation
Impairment losses(Reversal of impairment
losses)Foreign currencytranslation difference
Others

－

－

－

(130)

(249)

(380)

－

12,225

6,971

22,832

5,352

47,381

Amortization

－

3,319

2,094

6,561

1,163

13,138

Disposal

－

－

(369)

(1,707)(5)(2,081)

－

－

－

－

－

－

－

－

－

4

－

4

－

(221)

(12)

(396)

(30)

(660)

Balance at March 31, 2016

Decrease as a result ofchange in scope of
consolidation
Impairment losses(Reversal of impairment
losses)Foreign currencytranslation difference
OthersBalance at March 31, 2017
(Note)

－

－

0

(20)

(73)

(93)

－

15,323

8,683

27,274

6,406

57,689Amortization of intangible assets is included in "Cost of sales" and "Selling, general and administrative
expenses" in the consolidated statements of profit or loss.
(Millions of yen)

Carrying amount

Goodwill

Balance at April 1, 2015

95,020

Balance at March 31, 2016

84,119Intangible
assetsrecognized Development
throughassetsbusiness
combination
69,147
11,32564,757

11,865

Software

OthersTotal

19,757

7,791

203,042

21,646

6,818

189,207

Balance at March 31, 2017
83,69660,027
12,00524,224
5,858
185,813(Note) Intangible assets recognized through business combination include customer-related assets and technologyrelated assets.
(2) Lease assets
The carrying amount of finance lease assets included in intangible assets consists of the following.
(Millions of yen)Transition date
(April 1, 2015)
Software721- 41 -FY2016FY2017(As of March 31, 2016) (As of March 31, 2017)16181

(3) Impairment testing of goodwill
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 is basedon the assumption that cash flows of more than five years will increase at a certain growth rate. The growth rate isdetermined by referencing the long-term expected growth rate of the market in which cash-generating units belong(about 1 to 2%). The discount rate is calculated based on the weighted-average capital cost before tax of cashgenerating units (about 5 to 18%).
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 transition date, the end of the fiscal year ended March 31, 2016 and thefiscal year ended March 31, 2017, 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 thebusiness transfer of Toyota Industries Commercial Finance, Inc. (TICF); and goodwill recognized in conjunction with theacquisition of the Uster Technologies AG Group in the Textile Machinery Segment. Goodwill recognized in conjunction
with the acquisition of the Cascade Corporation Group is allocated to this group and amounts to 29,335 million yen,
27,506 million yen and 27,387 million yen as of the transition date, the end of the fiscal year ended March 31, 2016 andthe end of the fiscal year ended March 31, 2017, respectively. Goodwill recognized in conjunction with the transfer ofbusiness of TICF during the fiscal year ended March 31, 2016 is allocated to the Materials Handling Equipment
Business in North America which is functioning as the cash-generating unit and amounts to 26,239 million yen and
26,315 million yen as of the end of the fiscal years ended March 31, 2016 and 2017, respectively. Goodwill recognizedin conjunction with the acquisition of the Uster Technologies AG Group is allocated to this group and amounts to 15,460
million yen, 14,503 million yen and 13,923 million yen, on the transition date, the end of the fiscal year ended March 31,
2016 and the end of the fiscal year ended March 31, 2017, respectively.

- 42 -

12. Investments Accounted for by the Equity Method
There are no affiliates of individual significance in the fiscal years ended March 31, 2016 and 2017. The carrying
amounts of investments in affiliates consist of the following.
(Millions of yen)Transition date
(April 1, 2015)
Total carrying amount

FY2016FY2017(As of March 31, 2016) (As of March 31, 2017)14,332

13,593

8,673

The amounts of equity in comprehensive income of affiliates of no individual significance consist of the following.
(Millions of yen)
FY2016FY2017(April 1, 2015– March 31, 2016)(April 1, 2016– March 31, 2017)
Amount of equity in profit
Amount of equity in other comprehensive
incomeAmount of equity in comprehensive income

632

974

(707)

183

(75)

1,158

While the amount of equity in profit in the previous fiscal year includes the amount of discontinued operations,disclosure is omitted because the monetary value is immaterial.
13. Trade Payables and Other Payables
Trade payables and other payables consist of the following.
(Millions of yen)Transition date
(April 1, 2015)
Trade notes and accounts payable

FY2016FY2017(As of March 31, 2016) (As of March 31, 2017)

205,379

213,907

241,924

Accounts payable— other

29,36325,792

28,135

Others119,900

116,181

117,273

Total

354,643355,882

387,333

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)Transition date
(April 1, 2015)
Due within 12 months

354,641

Due after 12 months
Total

FY2016FY2017(As of March 31, 2016) (As of March 31, 2017)355,878

387,3211

3

11354,643355,882

387,333- 43 -

14. Corporate Bonds and Loans
Corporate bonds and loans consist of the following.
(Millions of yen)
FY2016(As of March 31,
2016)

Transition date
(April 1, 2015)
Short-term loans
payableCommercial paper

FY2017(As of March 31,
2017)

Averageinterest rate(%)

Repaymentdue

55,369121,572

55,211

2.39

－

－

－

52,508－－Long-term loans
payable due
within one year

44,36749,271

193,947

1.46－

Corporate bonds
due within one
year

47,05319,999

9,996

－

－

Long-term loans
payable439,705

520,663405,125

1.49

Corporate bonds

185,676

190,760

260,765－

Total(Note)

April 2018－
December
2024－

772,121902,268
977,554－－
The average interest rate reflects the weighted-average interest rate against the balance at the end of the
fiscal year ended March 31, 2017. In regard to loans payable for which derivative transactions, such as
interest rate swaps, are used to avoid interest rate fluctuation risks, calculations are based on the interest rate
after hedging by derivative transactions. Rates for corporate bonds are indicated in the summary of issuanceterms of corporate bonds.

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

- 44 -

The summary of issuance terms of corporate bonds consists of the following.

Company
nameThe
CompanyThe
CompanyThe
CompanyThe
Company

ToyotaIndustries
Finance
International
AB

The
CompanyThe
CompanyThe
CompanyThe
CompanyName
15thissuanceof
corporate
bonds
without
collateral
16th
issuanceof
corporate
bonds
without
collateral
17th
issuanceof
corporate
bonds
without
collateral
18th
issuanceof
corporate
bonds
without
collateral

Mediumterm notes

19th
issuanceof
corporate
bonds
without
collateral
20thissuanceof
corporate
bonds
without
collateral
21stissuanceof
corporate
bonds
without
collateral
22ndissuanceof
corporate
bonds
without
collateralIssuance
date(Millions of yen)Transition
FY2016FY2017
Interest
date
Maturity(As of March 31, (As of March 31, rate Collateral(April 1,
date
2016)
2017)
(%)
2015)

November21, 2005

29,996－－ 1.660

None

September
18, 2015

October 20,
2006

19,987

19,995

－

1.950

None

September
20, 2016

September
26, 2008

25,97025,97925,987

1.720

None

September
20, 2018

April 22,2009

49,942

49,957

49,971

2.109

None

March 20,
2019

April 22,
2010– June
28, 2010

7,053
[504
millionSwedishkrona]

None

April 23,2015–
June 17,2015－

September13, 2011

29,931

29,941

1.109

None

September
17, 2021

November30, 2012

9,996－－ 0.181

None

September
18, 2015

November30, 2012

9,984

9,991

9,996
0.265
(9,996)

None

September
20, 2017

November30, 2012

9,970

9,974

9,978

None

September
20, 2022- 45 -

0.450
－
–
0.740

29,952

0.821

Company
name

The
CompanyThe
CompanyThe
CompanyThe
CompanyThe
CompanyThe
CompanyName
23rdissuanceof
corporate
bonds
without
collateral
24thissuanceof
corporate
bonds
without
collateral
25thissuanceof
corporate
bonds
without
collateral
26th
issuanceof
corporate
bonds
without
collateral
27th
issuanceof
corporate
bonds
without
collateral
28thissuanceof
corporate
bonds
without
collateralIssuance
date(Millions of yen)Transition
FY2016FY2017
Interest
date
Maturity(As of March 31, (As of March 31, rate Collateral(April 1,
date
2016)
2017)
(%)
2015)

September
5, 2013

9,975

9,980

9,984

0.554

None

September
18, 2020

September
5, 2013

9,971

9,975

9,978

0.797

None

June 20,2023

September11, 2014

9,977

9,982

9,987

0.234

None

September
20, 2019

September11, 2014

9,971

9,976

9,980

0.361

None

September
17, 2021

May 29,
2015

－

9,979

9,984

0.207

None

June 19,2020

May 29,
2015

－

9,973

9,977

0.318

None

June 20,
2022

5,054
5,036
0.075
[USD44 million] [USD44 million]

None

June 19,2020

19,938 0.080

None

June 19,
2026

2.630
–
2.871

None

January 31,
2022–
March 16,2022

49,910 0.001

None

March 19,
2020

The
Company

Mediumterm notes

June 19,
2015

－

The
Company

29th
issuanceof
corporate
bonds
without
collateral

July 15,
2016

－

－

ToyotaIndustries
Commercial
Finance, Inc.

Mediumterm notes

January 31,
2017–
March 15,2017－

10,097－[USD90 million]

The
Company

30thissuanceof
corporate
bonds
without
collateral

March 9,
2017

－

－

- 46 -

Company
name
Total

Name

Issuance
date

－

－

(Millions of yen)Transition
FY2016FY2017
Interest
date
Maturity(As of March 31, (As of March 31, rate Collateral(April 1,
date
2016)
2017)
(%)
2015)
270,762
232,729
210,760－－－(9,996)(Notes) 1. The figure in parentheses in the "FY2017" is the amount of scheduled redemptions within a year.
(Notes) 2. In regard to corporate bonds for which derivative transactions, such as interest rate swaps, are used to
avoid interest rate fluctuation risks, the interest rate after hedging with derivative transactions is indicated.

- 47 -

15. Other Financial Liabilities
Other financial liabilities consist of the following.
(Millions of yen)Transition date
(April 1, 2015)
Lease obligations

FY2016FY2017(As of March 31, 2016) (As of March 31, 2017)

169,308

147,116

117,080

Derivative liabilities

3,367

4,164

3,560

Deposits payable

87,62330,40830,541

Total

260,299

181,688

151,182

Current liabilities

138,667

75,44071,807

Non-current liabilities

121,632

106,248

79,375

Total

260,299

181,688

151,182

Lease liabilities and deposits payable are 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).
16. Assets Pledged as Collateral and Secured Liabilities
Assets pledged as collateral consist of the following.
Transition date
(April 1, 2015)

FY2016(As of March 31, 2016)(Millions of yen)
FY2017(As of March 31, 2017)

Investment securities

143,192

114,288

122,108

Inventories
Property, plant andequipment

1,591

1,227

931

1,247

612

575

Others

1,566

835

1,517

Total

147,596

116,963

125,132

Secured liabilities consist of the following.
Security interest may be exercised in case there is a breach of financial covenants or non-fulfillment of a loan agreement.
(Millions of yen)Transition date
FY2016FY2017(April 1, 2015)(As of March 31, 2016)(As of March 31, 2017)
Short-term loans
3,554
2,096
2,628
payableLong-term loans
715
68
64
payableOthers27,28428,55329,358

Total

31,55430,71832,050- 48 -

17. Provisions

Provisions are recorded in current liabilities and non-current liabilities on the consolidated statement offinancial position.
Increase (decrease) of provisions in the fiscal years ended March 31, 2016 and 2017 consist of the following.
(Millions of yen)
Warranty provision

Asset retirement
obligation

Balance at April 1, 2015

4,170

2,633

5,095

11,899

Increase due to provisions
Increase through businesscombination
Decrease as a result of change inscope of consolidation

7,567

291

5,079

12,938

－

－

－

－

－

(715)

－

(715)

Decrease due to intended use(3,382)(186)(3,721)(7,291)

(229)

－

(236)

(466)

(20)

(11)

(107)

(138)

Decrease due to reversal
Interest expenses based on discountcalculation, foreign currencytranslation difference and others
Balance at March 31, 2016

Others

Total

8,104

2,011

6,109

16,225

Increase due to provisions
Increase through businesscombination
Decrease as a result of change inscope of consolidation

5,903

196

1,802

7,901

－

－

－

－

－

－

－

－

Decrease due to intended use(7,169)(147)(1,785)(9,102)

Decrease due to reversal
(19)
(427)
(447)
－
Interest expenses based on discountcalculation, foreign currency
(122)
(10)
(568)
(700)
translation difference and others
Balance at March 31, 2017
6,695
2,050
5,131
13,877
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".
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 for some items
are made over a longer period of time because customers take longer to physically return defective products.
"Others" mainly includes provision for litigation.

- 49 -

18. 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 is set
based on 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 andsalaries.
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, how and what is provided through theplan and the contributions to be made by the Company. The agreement is approved by the Minister of Health, Labour,and Welfare. 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 theagreement. Furthermore, a retirement benefit trust is set for some plans in Japan. Some subsidiaries outside Japan also
adopt a wide range of defined benefit plans in accordance with local laws and regulations.
The Company changed its pension scheme in April 2017 so that the amount of benefits under the defined benefit plan will
be determined by the number of points acquired. Points are earned by employees based on factors such as the numberof years of service and certifications.
(2) Defined benefit plans
The defined benefit plans related amounts recognized on the consolidated statements of financial position consists of thefollowing.
(Millions of yen)Transition date
(April 1, 2015)
Retirement benefit
obligations
Fair value of plan assets
Difference

FY2016(As of March 31, 2016)

FY2017(As of March 31, 2017)

255,903261,710264,260

193,010

184,419

189,837

62,892

77,29074,423

Effect of asset ceiling

2,885

－

－

Net defined benefit assets

22,283

11,651

18,129Net defined benefit
liabilities

88,062

88,942

92,552(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.

- 50 -

(i) Fluctuations of present value of defined benefit obligations(Millions of yen)
Outside JapanJapan
FY2016(April 1, 2015–
March 31, 2016)

FY2017(April 1, 2016–
March 31, 2017)

FY2016(April 1, 2015–
March 31, 2016)

FY2017(April 1, 2016–
March 31, 2017)

Balance at beginning of period

151,603

169,456

104,300

92,253Service cost

8,373

9,052

3,551

2,805

Interest cost

1,899

1,088

2,955

2,662

(1,229)(1,256)(843)(1,319)16,359(4,038)(8,239)

8,738

305

63

(1,481)(1,432)

－

－

3

377

Retirement benefits paid

(4,146)(5,331)(2,558)(3,421)

Effect of foreign currencytranslation－－(6,300)(6,977)(3,708)

1,012

866

524

169,456

170,048

92,253

94,211Remeasurements
Actuarial gains (losses) arisingfrom changes in demographic
assumptions
Actuarial gains (losses) arisingfrom changes in financial
assumptions
Difference arising from revised
results
Prior service cost

OthersBalance at end of period

The weighted-average duration associated with Toyota Industries' defined benefit obligation is 17.7 years in Japan and18.4 years outside Japan for the fiscal year ended March 31, 2016 and 17.1 years in Japan and 19.1 years outside Japanfor the fiscal year ended March 31, 2017.
(ii) Fluctuations of fair value of plan assets(Millions of yen)
Outside JapanJapan
FY2016(April 1, 2015–
March 31, 2016)

FY2017(April 1, 2016–
March 31, 2017)

FY2016(April 1, 2015–
March 31, 2016)

FY2017(April 1, 2016–
March 31, 2017)

132,833

128,697

60,17755,721

Interest income

1,773

874

1,670

1,489

Revenue associated with plan
assets (excluding interest
income above)(7,663)

5,445

(950)

3,106

Employer contributions

4,169

4,087

2,404

2,097

－

－

－

－

Benefit payment(2,464)(3,165)(2,130)(3,024)

Exchange impact－－(5,832)(5,671)

Balance at beginning of period

Return to employer

OthersBalance at end of period

49

(22)

383

200

128,697

135,916

55,721

53,921The projected amount of contributions to plan assets in the fiscal year ending March 31, 2018 is 6,402 million yen.

- 51 -

(iii) Classes of plan assets
The classes of plan assets on the transition date consisted of the following.
(Millions of yen)
Outside JapanJapan
Items with Items with no
publishedpublishedvalue in an value in an
active market active market

Total

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

Total

Equity securities:
Stock

129

－

129

28,144－28,144

Jointly managed trust－

24,02024,020－－－Debt securities:
Bonds
Jointly managed trust
Stock included in retirement
benefits trust:
Other assets:
Life insurance general account
Other
Total plan assets

－

168

168

－

17,151

17,151－49,50149,501

－

539

539

37,273－37,273－－－－

10,875

10,875

－

1,514

1,514

4,250

6,613

10,864

11,386

1,440

12,82741,65391,179132,833

39,531

20,64560,177(Note) "Others" includes cash and deposits, etc.
The classes of plan assets for the fiscal year ended March 31, 2016 consisted of the following.
(Millions of yen)
Outside JapanJapan
Items with Items with no
publishedpublishedvalue in an value in an
active market active market

Total

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

Total

Equity securities:
Stock

136

－

136

15,541－

15,541

Jointly managed trust－

21,046

21,046

－

8,167

8,167

Debt securities:
Bonds

－

193

193

－

9,315

9,315

Jointly managed trust－

47,41747,417

－

7,501

7,501

30,754－30,754－－－－18,965

18,965

－

1,477

1,477

Stock included in retirement
benefits trust:
Other assets:
Life insurance general account
Other
Total plan assets

4,970

5,213

10,18412,007

1,712

13,71935,861

92,836

128,697

27,54828,17355,721(Note) "Others" includes cash and deposits, etc.

- 52 -

The classes of plan assets for the fiscal year ended March 31, 2017 consisted of the following.
(Millions of yen)
Outside JapanJapan
Items with Items with no
publishedpublishedvalue in an value in an
active market active market

Total

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

Total

Equity securities:
Stock

157

－

157

13,816－

13,816

Jointly managed trust－

25,54825,548

－

8,623

8,623

Debt securities:
Bonds
Jointly managed trust
Stock included in retirement
benefits trust:
Other assets:
Life insurance general account
Other
Total plan assets

－

188

188

－

8,097

8,097

－

42,232

42,232

－

8,535

8,535

33,289－33,289－－－－19,177

19,177

－

1,445

1,445

5,688

9,632

15,32011,594

1,807

13,402

39,13596,780135,916

25,411

28,50953,921(Note) "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.
(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
Transition
date(April 1,
2015)
Discount rate

1.36 %

Outside Japan

FY2016FY2017(As of March (As of March
31, 2016)
31, 2017)
0.69%- 53 -

0.82%

Transition
date(April 1,
2015)
3.06%

FY2016FY2017(As of March (As of March
31, 2016)
31, 2017)
3.54%

3.02%

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, 2017 would have been
impacted as follows. While the sensitivity analysis assumes that there are no changes in other assumptions, it is possiblethat changes in other assumptions could impact the sensitivity analysis.
(Millions of yen)Transition date
(April 1, 2015)

Discount
rate

Japan
OutsideJapan

FY2016(As of March 31, 2016)

FY2017(As of March 31, 2017)0.5% increase(10,192)(11,777)(11,116)

0.5% decrease

11,537

13,337

12,521

0.5% increase(7,332)(5,877)(6,971)

0.5% decrease

8,272

6,673

7,803

(3) Defined contribution pension plan
The amount of contributions paid for the defined contribution pension plan for the fiscal years ended March 31, 2016 and2017 were 6,155 million yen and 6,021 million yen, respectively. Welfare insurance premiums are accounted for in thedefined contribution pension plan and included in employee benefits expenses.
(4) Multi-employer plan
Certain subsidiaries in Japan participate in the welfare pension fund plan 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. Certain domestic subsidiaries are currently enrolled in the Japan Industrial Machine and Allied
Products Employees' Pension Fund and Nagano Machine and Allied Products Employees' Pension Fund. These funds
are in the process of transfer to the government of the substitutional portion of the employee pension fund liabilities. Also,
certain domestic subsidiaries participated in the Aichi Prefecture Truck Business Employees' Pension Fund andAitetsuren Employees' Pension Fund, both of which were approved by the Minister of Health, Labour, and Welfare todissolve on September 25, 2015, and March 17, 2016, respectively. The impact of such dissolution on the consolidated
financial statements is immaterial.
The amount of the contribution required in each fiscal year consists of the following.
(Millions of yen)
FY2016FY2017(April 1, 2015– March 31, (April 1, 2016– March 31,
2016)
2017)
Contributions

75

56

The projected contribution in the fiscal year ending March 31, 2018 is 56 million yen.
The funded and unfunded status, on an aggregation basis of the Group's entire plans are as follows.
(Millions of yen)Transition date
(April 1, 2015)
Plan assets
Actuarial liability based on pension
plan finance calculation andminimum actuarial reserve
Funded/(Unfunded) amount

FY2016(As of March 31, 2016)

FY2017(As of March 31, 2017)

322,175

124,256

102,683

447,792

150,897

126,106(125,616)(26,640)(23,423)

The rate of contributions of Toyota Industries within the entire plan consists of the following.
Transition date
(April 1, 2015)
Rate of contribution

4.63%- 54 -FY2016(As of March 31, 2016)

FY2017(As of March 31, 2017)

6.25%

6.37%

19. 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, 2016 and 2017 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)
Transition date (April 1, 2015)

325,840,640

Increase (decrease) during period
FY2016 (as of March 31, 2016)

Capital surplus(millions of yen)

80,462

105,592

－

－

(75)

325,840,640

80,462

105,517

Increase (decrease) during period
FY2017 (as of March 31, 2017)

Capital stock(millions of yen)

－

－

(99)

325,840,640

80,462

105,417

All shares issued by the Company are common stock, which has no restrictions on the content of rights and no par 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 and retained
earnings reaches one fourth of capital. Accumulated retained earnings may be appropriated to compensate for losses.
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.

- 55 -

(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 theCompanies 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)
Transition date (April 1, 2015)

11,684,749

41,509(70,937)(242)

11,613,812

41,2663,737,630

18,005

15,351,442

59,272

Increase (decrease) during period
FY2016 (as of March 31, 2016)
Increase (decrease) during period
FY2017 (as of March 31, 2017)

Amount (millions of yen)

(4) Other components of shareholders' 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 immediatelytransferred from other 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.
(v) Subscription rights to sharesThis is a subscription right to shares related to the stock option program.

- 56 -

20. Cash Dividends(1) Dividends paid
FY2016 (April 1, 2015– March 31, 2016)
Resolutions

Total dividends(millions of yen)Class of shares

Ordinary General
Meeting of
Shareholders
held on June 11,
2015
Board ofDirectors meeting
held on October30, 2015

Dividends per
share (yen)Record date

Effective dateCommon stock

18,84960

March 31, 2015

June 12, 2015

Common stock

18,85060

September 30,
2015

November 26,
2015

Record date

Effective date

FY2017 (April 1, 2016– March 31, 2017)
Resolutions

Class of shares

Ordinary General
Meeting of
Shareholders
held on June 10,
2016
Board ofDirectors meeting
held on October28, 2016

Total dividends(millions of yen)

Dividends per
share (yen)Common stock

18,85360

March 31, 2016

June 13, 2016

Common stock

18,75560

September 30,
2016

November 25,
2016(2) Dividends with a record date in the fiscal year ended March 31, 2017 for which the effective date falls in the following
fiscal year

Resolutions

Class of shares

Ordinary
GeneralMeeting of
Shareholders
held on June
9, 2017

Commonstock

Source ofdividends

Retainedearnings

Total dividends(millions of yen)

Dividends per
share (yen)20,18165- 57 -

Record date

Effective date

March 31,2017

June 12, 2017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)
FY2016FY2017(April 1, 2015– March 31, 2016) (April 1, 2016– March 31, 2017)
Purchase of raw materials and goods

697,849

669,738

Employee benefit expenses

437,533

440,830

Depreciation and amortization

143,308

148,388

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)
FY2016FY2017(April 1, 2015– March 31, 2016) (April 1, 2016– March 31, 2017)
Research and development expenses

48,18957,214

23. Other Earnings and Expenses
Other earnings consist of the following.
(Millions of yen)

Rental fees for fixed assets

FY2016FY2017(April 1, 2015– March 31, 2016) (April 1, 2016– March 31, 2017)
930
898

Gain on sales of fixed assets

560

725

Others

9,388

9,787

Total

10,87911,411Other expenses consist of the following.
(Millions of yen)

Loss on disposal of fixed assets

FY2016FY2017(April 1, 2015– March 31, 2016) (April 1, 2016– March 31, 2017)
1,718
2,125

Loss on sales of fixed assets

291

Depreciation and amortization

297

528

569

Others

9,418

9,488

Total

11,956

12,480- 58 -

24. Financial Income and Financial Expenses
Financial income consists of the following.
(Millions of yen)
FY2016FY2017(April 1, 2015– March 31, 2016) (April 1, 2016– March 31, 2017)
Interest income
Financial assets measured at amortized cost

1,339

956

Financial assets measured at fair value throughprofit or loss

8

40

Others6

1

65,012

61,865

Others

897

871

Total

67,26463,734

Dividends income
Financial assets measured at fair value throughother comprehensive income

Financial expenses consist of the following.
(Millions of yen)
FY2016FY2017(April 1, 2015– March 31, 2016) (April 1, 2016– March 31, 2017)
Interest expenses
Financial liabilities measured at amortized cost
Financial liabilities measured at fair value throughprofit or loss
Others

10,288

7,926

299

181

－

3

Foreign currency translation losses

1,279

509

Others

1,668

1,446

Total

13,536

10,067- 59 -

25. Income Taxes(1) Income tax expenses
Income tax expenses consist of the following.
(Millions of yen)
FY2016FY2017(April 1, 2015– March 31, 2016) (April 1, 2016– March 31, 2017)
Current tax expenses

50,61835,724

Deferred tax expenses

2,246

8,696

Total

52,86544,420

Deferred tax expenses increased because of the tax rate changes in Japan for the fiscal year ended March 31, 2016,
and due primarily to taxable temporary differences that arose and reversed for the fiscal year ended March 31, 2017.
The difference between the statutory effective tax rate and the actual tax rate consist of the following.
FY2016FY2017(April 1, 2015– March 31, 2016) (April 1, 2016– March 31, 2017)
Statutory effective tax rate
Dividends income and others permanently
not recognized as taxable income
Share of profit of investments accounted
for by the equity method

32.9%

31.1%

(5.7)

(5.6)

(0.1)

(0.2)

Others0.5(0.9)

Actual tax rate

27.6

24.4

Toyota Industries has mainly had to pay income, inhabitants and enterprise taxes, and the statutory effective tax rate
calculated based on these taxes was 32.9% and 31.1% for the fiscal years ended March 31, 2016, and 2017,
respectively. Subsidiaries outside Japan, however, pay income and other taxes depending on their locations.
The Diet passed the "Act for Partial Revision of the Income Tax Act, etc." (Act No. 15 of 2016) and the "Act for Partial
Revision of the Local Tax Act, etc." (Act No. 13 of 2016) on March 29, 2016 so that the tax rates of income and othertaxes were to be lowered effective from the consolidated fiscal year beginning on April 1, 2016. Accordingly, thestatutory effective tax rate applied to the calculation of deferred tax assets and liabilities was changed from theprevious 32.9% to 31.1% for the temporary differences expected to be reversed from the consolidated fiscal year
beginning on April 1, 2016 and the consolidated fiscal year beginning on April 1, 2017, and to 30.9% for the temporary
differences expected to be reversed from the consolidated fiscal years beginning on or after April 1, 2018.

- 60 -

(2) Deferred tax assets and deferred tax liabilities
Deferred tax assets and deferred tax liabilities consist of the following.
FY2016 (April 1, 2015– March 31, 2016)(Millions of yen)
Balance at
beginning of
periodRecognizedin profit
or loss

Recognized inothercomprehensive
incomeNet defined benefit liabilities

23,226(1,574)63

21,715

Allowance for compensated absences

7,749

(273)

－

7,475

Allowance for bonuses

7,518

(482)

－

7,036

Net operating loss carry-forwards for tax purposes

5,470

(997)

－

4,473

Accrued expenses

3,403

2,300

－

5,703

Inventories

3,945

992

－

4,937

Others21,368

5,991

393

27,753

Total deferred tax assets

72,683

5,955

456

79,095

731,315－(227,795)

503,519

37,251

4,048－

41,300

Others

28,8884,153(3,512)

29,529Total deferred tax liabilities

797,4558,201(231,308)

574,348(724,772)(2,246)

231,764(495,253)

Balance at
end ofperiodDeferred tax assets:

Deferred tax liabilities:
Financial assets at fair value through othercomprehensive income
Depreciation

Net amount
FY2017 (April 1, 2016– March 31, 2017)(Millions of yen)
Balance at
beginning of
periodRecognizedin profit
or loss

Recognized inothercomprehensive
incomeNet defined benefit liabilities

21,715(4,268)(237)

17,208

Allowance for compensated absences

7,475

508

－

7,984

Allowance for bonuses

7,036

11

－

7,047

Net operating loss carry-forwards for tax purposes

4,473

1,488

－

5,962

Accrued expenses

5,703

(276)

－

5,427

Balance at
end ofperiodDeferred tax assets:

Inventories

4,937

(606)

－

4,331

Others27,753

2,695

(594)

29,853

Total deferred tax assets

79,095

(447)

(832)

77,815503,519－

36,525

540,044

41,30012,571－53,871Others29,529(4,322)

2,695

27,902

Total deferred tax liabilities

574,348

8,249

39,220621,818(495,253)(8,696)(40,052)(544,003)

Deferred tax liabilities:
Financial assets at fair value through othercomprehensive income
Depreciation

Net amount- 61 -

Deferred tax assets and deferred tax liabilities on the consolidated statements of financial position consist of thefollowing.
(Millions of yen)Transition date
(April 1, 2015)
Deferred tax assets:

31,812FY2016(As of March 31,
2016)

FY2017(As of March 31,
2017)22,59923,800

Deferred tax liabilities:

756,584

517,854

567,803

Net amount(724,772)(495,253)(544,003)

Loss carry-forwards and future deductible temporary differences which are not recognized as deferred tax assets
consist of the following.
(Millions of yen)
FY2016(As of March 31,
2016)

FY2017(As of March 31,
2017)11,578

10,825

7,188

Transition date
(April 1, 2015)
Net operating loss carry-forwards for tax purposes
Unused tax credits

763

1,094

1,585

Deductible temporary differences

6,003

3,070

3,547

Total

18,344

14,99012,321

Amount and the time limit for a loss carry-forwards and unused tax credits which are not recognized as deferred tax
assets consist of the following.
(Millions of yen)Transition date
(April 1, 2015)

FY2016(As of March 31,
2016)

FY2017(As of March 31,
2017)First year

202

621

343

Second year

563

216

675

Third year

677

895

218

Fourth year

826

167

340

Beyond fifth year

9,307

8,923

5,610

Total

11,578

10,825

7,188

The total amount of taxable temporary differences associated with investments in subsidiaries not recognized asdeferred tax liabilities as of the transition date, the end of the fiscal year ended March 31, 2016, and the end of the
fiscal year ended March 31, 2017, was 276,671 million yen, 246,938 million yen and 278,583 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.

- 62 -

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)
FY2016(April 1, 2015
– March 31, 2016)

FY2017(April 1, 2016
– March 31, 2017)

Continuing operations

132,835

131,398

Discontinued operations

61,435－

Profit attributable to owners of common stock of the parent

194,270

131,398(ii) Weighted-average number of common stock(Thousands)
FY2016(April 1, 2015
– March 31, 2016)
Weighted-average number of common stock

FY2017(April 1, 2016
– March 31, 2017)314,180

312,272(2) Basis of calculation for diluted earnings per share(i) Profit attributable to owners of common stock of the parent after dilution(Millions of yen)
FY2016(April 1, 2015
– March 31, 2016)

FY2017(April 1, 2016
– March 31, 2017)

Continuing operations

132,835

131,398

Discontinued operations

61,435－

Profit attributable to owners of common stock of the parent

194,270

131,398

Adjustments to profit used for calculation of diluted earnings
per share－－

194,270

131,398

Profit used for computation of diluted earnings per share(ii) Weighted-average number of common stock after dilution(Thousands)
Weighted-average number of common stock
Effect of dilutive potential shares of common stock
Weighted-average number of common stock after dilution- 63 -

314,180

312,2725－

314,186

312,27227. Other Comprehensive Income(Millions of yen)
FY2016FY2017(April 1, 2015– March 31, 2016) (April 1, 2016– March 31, 2017)
Net changes in revaluation of FVTOCI
financial assets:
Amount arising during the period(636,994)

114,328(636,994)
227,795

114,328(36,525)(409,198)

77,802(10,598)

7,795

Before tax effect adjustment
Tax effect(10,598)
3,576

7,795
(2,933)Remeasurements of defined benefit plans(7,022)

4,862(35,492)(35,492)(18,913)(18,913)

Before tax effect adjustment
Tax effect
Net changes in revaluation of FVTOCI
financial assets
Remeasurements of defined benefit plans:
Amount arising during the period

Translation adjustments of foreign operations:
Amount arising during the period
Translation adjustments of foreign operations
Cash flow hedges:
Amount arising during the period
Recycling
Before tax effect adjustment
Tax effectCash flow hedges
Share of other comprehensive income of affiliates
accounted for by equity method:Amount arising during the period
Recycling
Share of other comprehensive income of affiliates
accounted for by equity method
Total other comprehensive income

1,370

1,129

(2,319)
(949)

707
1,836

393
(556)

(594)
1,242

(707)
－

(431)
615

(707)

183

(452,977)

65,177

28. Important Non-Cash Transactions
Important non-cash transactions (investments and financial transactions which do not use cash and cash equivalents)
consist of the following.
(Millions of yen)

Acquisition of assets on finance leases

FY2016FY2017(April 1, 2015– March 31, 2016) (April 1, 2016– March 31, 2017)18,87816,600- 64 -

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, 2017.
(2) Matters concerning risk management(A) Risk management policy
Toyota Industries is exposed to financial risks related to its marketing activities (credit risk, market risk, liquidity 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 agreement by thecounterparty). In accordance with internal rules including the treasury policy, Toyota Industries strives to promptly
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 and ratings, and conducting
due date management and balance management. Collection risk of lease investment assets is minimal because theirownership 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 financial element in accounts receivable, the loss evaluation allowance is calculated 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 toaccounts receivable and lease investment assets of debtors who have no significant problems in their businessconditions, the expected credit loss rate is measured collectively, taking into account the past track record of bad debts
and others.

- 65 -

Measuring expected credit loss for loans receivable related to the sales financing businessIf credit risk has not increased significantly as of the end of the fiscal year since initial recognition, the loss evaluation
allowance for loans receivable related to the sales financing business is calculated by collectively estimating the
expected credit loss rate for the following 12 months based on the past track record of bad debts and others. 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, theloss evaluation allowance for financial instruments is calculated by individually estimating the lifetime expected credit
losses of collecting financial instruments based on the past track record of bad debts and the collectible amount in the
future among other factors. Assets that are regarded as non-performing are recorded as credit impaired financial
assets.
Expected credit loss of trade receivables and other receivables which are past due date and for which simplified
approaches are applied consist of the following.
Transition date (April 1, 2015)(Millions of yen)

Expected credit loss
rate
Accounts receivableand lease investment
assetsLifetime expected credit
losses

Before due dateWithin 30 days
after due date

Over 30 days but
within 90 days
after due date

0.3%

0.5%

3.5%

Over 90 days
after due date
36.4%

Total
－

444,583

20,991

8,841

6,378

480,794

1,504

107

313

2,320

4,246

FY2016 (As of March 31, 2016)(Millions of yen)

Expected credit loss
rate
Accounts receivableand lease investment
assetsLifetime expected credit
losses

Before due dateWithin 30 days
after due date

Over 30 days but
within 90 days
after due date

Over 90 days
after due date

0.2%

0.6%

7.0%

39.8%

Total
－

507,098

16,865

7,828

6,495

538,288

785

102

549

2,587

4,025

FY2017 (As of March 31, 2017)(Millions of yen)

Expected credit loss
rate
Accounts receivableand lease investment
assetsLifetime expected credit
losses

Before due dateWithin 30 days
after due date

Over 30 days but
within 90 days
after due date

0.2%

1.1%

6.6%

Over 90 days
after due date
36.9%

Total
－

529,190

16,797

6,286

6,692

558,967

1,294

178

413

2,470

4,356

- 66 -

Among 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 forits measurement, consists of the following. The transition date (April 1, 2015), which was before the Commercial
Finance business transfer from Toyota Motor Credit Corporation, is omitted due to its monetary immateriality.
(Millions of yen)Stage 112-month expectedcredit losses
FY2016(As of March 31, 2016)
FY2017(As of March 31, 2017)

Stage 2Lifetime expectedcredit losses

Stage 3Credit impaired
financial assets

Total

91,353－258

91,611

92,396－272

92,668Changes in expected credit loss consist of the following.
FY2016 (As of March 31, 2016)(Millions of yen)

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
periodExpected credit loss
for accounts receivableand lease investment
assets12-month expectedcredit losses

4,246

33

93

29

1,352

376

－

－

－

－

－

－

－

－

－

－

－

－

－

－

(1,065)

(12)

(57)

(14)

(507)

(21)

13

214

4,025

375

49

228

- 67 -

Lifetime expectedcredit losses

Credit impaired
financial assets

FY2017 (As of March 31, 2017)(Millions of yen)
Expected credit loss
for accounts receivableand lease investment
assets12-month expectedcredit losses

4,025

375

49

228

1,587

778

－

－

－

－

－

－

－

－

－

－

－

－

－

－

(1,112)

(724)

(38)

(88)

(143)

21

11

(4)

4,356

450

22

135

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
periodLifetime expectedcredit losses

Credit impaired
financial assetsii) 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 the treasury
policy, Toyota Industries prepares funding plans and secures liquidity with funds on hand and commitment lines.
Toyota Industries' financial liabilities by remaining contract maturities consist of the following.
Transition date (April 1, 2015)(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

217,779

0

2

2

－

－

217,784

155,408

93,114

125,595

244,377

50,678

134,677

803,852

Lease obligations

51,23253,31436,746

20,975

9,440

3,609

175,319

Deposits payable

87,623

－

－

－

－

－

87,623

Derivative financial
liabilities:
Derivative liabilities

2,863

120

108

89

121

63

3,367

- 68 -

FY 2016 (As of March 31, 2016)(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

223,826

138

6

17

0

1

223,990

204,626

201,832

277,063

82,18556,429112,722934,859

Lease obligations

48,83041,49529,98818,053

9,883

3,767

152,019

Deposits payable

30,408

－

－

－

－

－

30,408Derivative financial
liabilities:
Derivative liabilities

1,670

823

719

619

308

23

4,164

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

FY2017 (As of March 31, 2017)(Millions of yen)
Total

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

253,431

707

2

－

－

－

254,140

324,497

291,673

150,346

82,03990,44162,4291,001,427

Lease obligations

44,19230,59921,88913,805

8,012

2,490

120,988

Deposits payable

30,541

－

－

－

－

－

30,541

Derivative financial
liabilities:
Derivative liabilities

2,005

662

604

276

11

－

3,560

iii) Market risk(a) Foreign currency risk
Engaged in business globally, Toyota Industries conducts transactions in foreign currencies and is exposed to the riskthat 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 andforeign currency swaps to hedge foreign currency risk for each currency for its monetary credits and liabilities
denominated in foreign currencies.
Toyota Industries' exposure to foreign currency risk consists of the following.
FY2016(As of March 31, 2016)
Thousands of U.S.
Thousands of euros
dollars
Net exposure

85,6958,151- 69 -FY2017(As of March 31, 2017)
Thousands of U.S.
Thousands of euros
dollars
105,171

138,124

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 rate of theJapanese yen against the following currencies consist of the following. The analysis does not include the effects of
converting into yen financial instruments, assets and liabilities of foreign operations, revenue and expenses which aredenominated in functional currencies. Moreover, other variables are assumed to be constant.
(Millions of yen)
FY2016(As of March 31, 2016)

FY2017(As of March 31, 2017)

U.S. dollars

96

117

Euros

10

165

(b) Interest rate risk
Toyota Industries procures funds through borrowings from financial institutions and issuances of corporate bonds andis exposed to interest rate risks associated with raising and managing funds. With regard to interest rate risks, Toyota
Industries hedges such risks by fixing interest payments through interest rate swaps and matching cash flows ofreceivables and payables, among other methods.
As a result, the Company does not conduct an interest rate sensitivity analysis because interest rate fluctuations havelittle effect on the interest payment of Toyota Industries, and interest rate risk and interest rate exposure are considered
immaterial for Toyota Industries.
(c) Price fluctuation risk of equity financial instruments
Toyota Industries holds listed shares of companies with business relationships and is exposed to price fluctuation riskof 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 transition date,
the fiscal year ended March 31, 2016 and the fiscal year ended March 31, 2017, decreases in other comprehensive
income (before adjusting tax effect) would have been 25,576 million yen, 19,056 million yen and 20,499 million yen,respectively.
Moreover, because the shares held by Toyota Industries are designated as financial assets at FVOCI, the assumed 1%
rise or drop of share prices will not have a significant impact on profit or loss in terms of monetary amount.
Liquidity discounts are an important unobservable input used to measure the fair value of unlisted shares and other
equity securities. A significant increase (decrease) of these discounts will cause a significant decrease (increase) in fairvalue.

- 70 -

(3) Fair value of financial instruments
The following three levels of inputs are used to measure fair value.
1) Level 1
The market prices of the same assets or liabilities in active markets (which continuously ensure sufficient trading
frequencies and transaction volumes) that consolidated subsidiaries have access to as of the measurement date areused as they are without adjustments.
2) Level 2This 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.
3) 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.
Fair value is measured by the Accounting Department in accordance with the evaluation policy and procedures ofToyota Industries, using the evaluation model that can most appropriately reflect individual characteristics, features andrisks of financial instruments. Moreover, changes are continuously examined for important indicators which affectfluctuations of fair value.
(i) Financial instruments measured at amortized cost
The carrying amount and fair values of financial instruments measured at amortized cost on the transition date, thefiscal year ended March 31, 2016 and the fiscal year ended March 31, 2017 consist of the following.
Transition date (April 1, 2015)(Millions of yen)
Carrying
amountFinancial assets:
Lease investment
assetsFinancial liabilities:
Corporate bonds(Note)
Long-term loans
payable (Note)
Lease obligations

Fair value
Level 1

Level 2

Level 3

Total

193,377－－

190,650

190,650

232,729－

241,096－

241,096

484,072－

490,693－490,693

169,308－－

170,323

170,323- 71 -

FY2016 (As of March 31, 2016)(Millions of yen)
Carrying
amountFinancial assets:
Loans receivable
related to the sales
financingbusiness(Note)
Lease investment
assetsFinancial liabilities:
Corporate bonds(Note)
Long-term loans(Note)
Lease obligations

Fair value
Level 1

Level 2

Level 3

Total

95,972－－

93,384

93,384

238,690－－

233,819

233,819

210,760－

215,760－

215,760

569,935－

580,275－

580,275

147,116－－

147,208

147,208

FY2017 (As of March 31, 2017)(Millions of yen)
Carrying
amountFinancial assets:
Loans receivable
related to the sales
financingbusiness(Note)
Lease investment
assetsFinancial liabilities:
Corporate bonds(Note)
Long-term loans(Note)
Lease obligations

Fair value
Level 1

Level 2

Level 3

Total

96,894－－

94,045

94,045248,974－－

243,927

243,927

270,762－

275,311－275,311

599,072－

604,609－604,609

117,080－－

117,344

117,344(Note) Loans receivable related to the sales financing business, corporate bonds and long-term loans include thebalance to be repaid and redeemed within one year.
Notes are omitted for short-term financial assets and liabilities measured at amortized cost as well as loans receivableon the transition date and loans receivable related to sales financing business on the transition date because the fairvalue approximates the carrying amount.
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 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. Note is omitted for the transition date because the fair value approximates the
carrying amount.
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.
The fair value of lease obligations is calculated with present value obtained by discounting the total amount of futurelease payments with the expected interest rate when newly undertaking similar lease transactions.

- 72 -

(ii) Fair values of financial assets and liabilities continuously at fair value
The fair-value hierarchy of financial instruments measured at fair value on the transition date, the fiscal year ended
March 31, 2016 and the fiscal year ended March 31, 2017 consists of the following. Financial assets measured at fairvalue through other comprehensive income include debt instruments but they were immaterial. Moreover, there is notransfer between different levels
Transition date (April 1, 2015)(Millions of yen)
Level 1
Financial assets measured at fair value throughprofit or loss:
Derivative assets
OthersFinancial assets measured at fair value throughother comprehensive income
Total

Level 2

Level 3Total

7

19,293－

19,300

1,214

－

－

1,214

2,554,216

1,034

87,1332,642,384

2,555,438

20,327

87,1332,662,899

Financial liabilities measured at fair value throughprofit or loss:
Derivative liabilities

17

3,349

－

3,367

Total

17

3,349

－

3,367

FY2016 (As of March 31, 2016)(Millions of yen)
Level 1
Financial assets measured at fair value throughprofit or loss:
Derivative assets

Level 2

Level 3Total

19

15,028－15,047

1,153

－

－

1,153

1,906,017

892

97,2732,004,183

1,907,190

15,921

97,2732,020,385

Financial liabilities measured at fair value throughprofit or loss:
Derivative liabilities

－

4,164

－

4,164

Total

－

4,164

－

4,164

OthersFinancial assets measured at fair value throughother comprehensive income
Total

FY2017 (As of March 31, 2017)(Millions of yen)
Level 1
Financial assets measured at fair value throughprofit or loss:
Derivative assets
OthersFinancial assets measured at fair value throughother comprehensive income
Total

Level 2

Level 3Total

614,594－

14,600

1,372

－

－

1,372

2,050,366

896

94,5282,145,791

2,051,745

15,491

94,5282,161,764

－

3,560

－

3,560

－

3,560

－

3,560

Financial liabilities measured at fair value throughprofit or loss:
Derivative liabilities
Total- 73 -

Derivatives are transactions for forward exchange contracts, foreign currency option contracts, interest rate swaps andinterest rate and currency swaps.
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 and interest rate and currency
swaps are calculated by financial institutions based on observable market data.
Toyota Industries primarily uses the book value per share method when measuring the fair value of unlisted shares andother equity securities categorized as financial assets measured at fair value through other comprehensive income. For
issues with high importance, the calculation is conducted with the modified net asset value method, with somemodifications made to market price if necessary. The illiquidity discount, which is an important unobservable input used
to measure the fair value of unlisted shares, is calculated as 30%.
Changes in financial instruments classified as Level 3 in each reporting period consist of the following.
(Millions of yen)

Balance at beginning of period

FY2016FY2017(April 1, 2015– March 31, 2016) (April 1, 2016– March 31, 2017)87,133
97,273

Total gains and losses:
Gains and losses (Note 1)
Other comprehensive income (Note 2)
Purchase

10,165(3,004)－－

10,165(3,004)

65

595

Sales

(8)

(5)

Others

(82)

(330)

97,273

94,528

Balance at end of period(Notes) 1.Gains and losses included in the profit and loss of the fiscal year ended March 31, 2017 are those forfinancial assets measured at fair value through profit or loss. These gains and losses are included in"Financial income" and "Financial expenses" on the Consolidated Statement of Profit or Loss.
(Notes) 2. 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.

- 74 -

(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 payablesof business 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 on the transition date, the fiscal year ended March 31, 2016 and the fiscal year ended March 31,
2017.
Transition date (April 1, 2015)(Millions of yen)TotalfinancialassetsFinancial assets:
Trade receivables andother receivables
Derivative assets
Total

Total
offsetFinancialassets ontheconsolidated
statementsof financial
position, net

Amount that
could beoffset in the
future basedon master
nettingagreements
and others

Collateral
received

Net amount

68,38247,57520,806－－20,806

9,320

－

9,320

393

－

8,926

77,70247,57530,126393－

29,733Financialliabilities ontheconsolidated
statementsof financial
position, net

Amount that
could beoffset in the
future basedon master
nettingagreements
and others(Millions of yen)Totalfinancialliabilities

Financial liabilities:
Trade payables
and other payables
Derivative liabilities
Total

Total
offsetCollateralpledgedNet amount

95,73147,575

48,155－－

48,155

2,504

－

2,504

393

－

2,111

98,23647,57550,660393－

50,267- 75 -

FY2016 (As of March 31, 2016)(Millions of yen)TotalfinancialassetsFinancial assets:
Trade receivables andother receivables

Amount that
could beoffset in the
future basedon master
nettingagreements
and others

Collateral
received

Net amount

79,152

39,21539,937－－39,937

7,737

－

7,737

1,321

－

6,415

86,88939,21547,674

1,321－

46,353Financialliabilities ontheconsolidated
statementsof financial
position, net

Amount that
could beoffset in the
future basedon master
nettingagreements
and others

Derivative assets
Total

Total
offsetFinancialassets ontheconsolidated
statementsof financial
position, net(Millions of yen)Totalfinancialliabilities

Financial liabilities:
Trade payables
and other payables

CollateralpledgedNet amount

96,485

39,21557,270－－57,270

1,696

－

1,696

1,321

－

375

98,182

39,21558,967

1,321－

57,645

Financialassets ontheconsolidated
statementsof financial
position, net

Amount that
could beoffset in the
future basedon master
nettingagreements
and others

Derivative liabilities
Total

Total
offset

FY2017 (As of March 31, 2017)(Millions of yen)TotalfinancialassetsFinancial assets:
Trade receivables andother receivables
Derivative assets
Total

Total
offsetCollateral
received

Net amount

89,971

58,182

31,789－－31,789

7,203

－

7,203

1,067

－

6,135

97,174

58,182

38,992

1,067－

37,924

Financialliabilities ontheconsolidated
statementsof financial
position, net

Amount that
could beoffset in the
future basedon master
nettingagreements
and others(Millions of yen)Totalfinancialliabilities

Financial liabilities:
Trade payables
and other payables
Derivative liabilities
Total

Total
offsetCollateralpledgedNet amount

128,493

58,23970,253－－70,253

1,712

－

1,712

1,067

－

644

130,205

58,23971,965

1,067－

70,898- 76 -

(5) Derivative transactions and hedging activities
Toyota Industries has concluded derivative agreements with financial institutions to hedge changes in cash flows offinancial assets and financial liabilities. Forward exchange contracts and currency options are used to hedge foreign
currency risks concerning trade receivables and trade payables denominated in foreign currencies. Moreover, currency
swaps, interest rate swaps and interest rate and currency swaps are used to hedge foreign currency risk and interest
rate risk of borrowings, corporate bonds and others.
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
charge of accounting and others.
Regarding foreign currency risk in operating activities, a certain amount of targeted risks is hedged, with the total
amount of 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 full amount is hedged in principle. For the foreign currency risk of other investing activities and financing
activities, the full amount is hedged as necessary.
Regarding interest rate risk, the upper limit is the amount equivalent to the balance of targeted risks for the hedging
amount, while the remaining period of targeted risks is the upper limit for the hedging period.
The effectiveness of hedging is evaluated by respectively comparing the market fluctuations or the accumulatedchanges in cash flows of hedged items and hedging instruments during the period from the start of hedging to theevaluation of the effectiveness. A high correlation has been observed between the two. Moreover, regarding hedges
with prospective ineffective portions, the ineffective amount is calculated using quantitative methods.
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 tobe deemed not effective but there is no change in the purpose of risk management, the hedging ratio established at thestart of 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.

- 77 -

(i) Effects of hedges on the Consolidated Statement of Financial Position
The carrying amount of derivative transactions designated to be hedged and financial instruments other than derivativetransactions on the transition date, the fiscal year ended March 31, 2016 and the fiscal year ended March 31, 2017consists of the following. Because the important conditions for hedging instruments and hedged items are consistent orclosely consistent, the values of hedging instruments and hedged items move in the opposite directions in response to
the same risk. Accordingly, the amount of ineffective portions is immaterial, and it has been omitted.
(a) Notional principals and average prices of hedging instruments
Transition date (April 1, 2015)
Average price(Yen)

Notional principal
Over one year
but within five
years

Over five years

459

－

－

459

118.62

201

－

－

201

8.31

287

26

0

313

9.28

41

－

－

41

12.17

3

－

－

3

8.58

41

0

－

41

9.29

116

－

－

116

117.93

15

－

－

15

133.97

11

－

－

11

92.42

11

806

－

817

－

95

290

－

385

－

4

66

－

71

－

－

47

－

47

－

8

740

45

794

96.39

－

－

107

107

93.32

Within one
year

Total

Foreign currency risk
Foreign currency
forward contracts
transactions
BUY JPY / SELL USD(Millions of U.S. dollars)
BUY SEK / SELL USD(Millions of U.S. dollars)
BUY SEK / SELL EUR(Millions of euros)BUY SEK / SELL GBP(Millions of British
pounds)BUY USD / SELL SEK(Millions of U.S. dollars)
BUY EUR / SELL SEK(Millions of euros)
Foreign currency
option contract
transactions
BUY JPY / SELL USD(Millions of U.S. dollars)
BUY JPY / SELL EUR(Millions of euros)BUY JPY / SELL AUD(Millions ofAustralian dollars)Interest rate risk
Interest rate swap
transactions
USD(Millions of U.S. dollars)
SEK(Millions of
Swedish kronas)
EUR(Millions of euros)
AUD(Millions ofAustralian dollars)Interest rate andcurrency swap transactions
USD(Millions of U.S. dollars)
AUD(Millions ofAustralian dollars)- 78 -

FY2016 (April 1, 2015– March 31, 2016)
Average price(Yen)

Notional principal
Over one year
but within five
years

Over five years

128

－

－

128

118.79

99

－

－

99

8.30

370

18

－

389

9.29

56

－

－

56

12.36

7

－

－

7

8.31

55

0

－

55

9.27

66

－

－

66

115.50

16

－

－

16

127.48

13

－

－

13

83.05

35

648

－

684

－

90

200

－

290

－

9

95

－

105

－

－

108

－

108

－

－

826

45

872

98.53

－

54

53

107

93.32

Within one
year

Total

Foreign currency risk
Foreign currency
forward contracts
transactions
BUY JPY / SELL USD(Millions of U.S. dollars)
BUY SEK / SELL USD(Millions of U.S. dollars)
BUY SEK / SELL EUR(Millions of euros)BUY SEK / SELL GBP(Millions of British
pounds)BUY USD / SELL SEK(Millions of U.S. dollars)
BUY EUR / SELL SEK(Millions of euros)
Foreign currency
option contract
transactions
BUY JPY / SELL USD(Millions of U.S. dollars)
BUY JPY / SELL EUR(Millions of euros)BUY JPY / SELL AUD(Millions ofAustralian dollars)Interest rate risk
Interest rate swap
transactions
USD(Millions of U.S. dollars)
SEK(Millions of
Swedish kronas)
EUR(Millions of euros)
AUD(Millions ofAustralian dollars)Interest rate andcurrency swap transactions
USD(Millions of U.S. dollars)
AUD(Millions ofAustralian dollars)- 79 -

FY2017 (April 1, 2016– March 31, 2017)
Average price(Yen)

Notional principal
Over one year
but within five
years

Over five years

56

－

－

56

112.14

28

－

－

28

8.90

863

12

－

875

9.46

58

1

－

59

11.10

71

－

－

71

8.97

208

1

－

209

9.55

102

－

－

102

113.10

44

－

－

44

120.79

13

－

－

13

85.14

125

450

－

576

－

200

－

－

200

－

1

425

－

426

－

－

162

－

162

－

276

631

－

907

98.66

－

107

－

107

93.32

Within one
year

Total

Foreign currency risk
Foreign currency
forward contracts
transactions
BUY JPY / SELL USD(Millions of U.S. dollars)
BUY SEK / SELL USD(Millions of U.S. dollars)
BUY SEK / SELL EUR(Millions of euros)BUY SEK / SELL GBP(Millions of British
pounds)BUY USD / SELL SEK(Millions of U.S. dollars)
BUY EUR / SELL SEK(Millions of euros)
Foreign currency
option contract
transactions
BUY JPY / SELL USD(Millions of U.S. dollars)
BUY JPY / SELL EUR(Millions of euros)BUY JPY / SELL AUD(Millions ofAustralian dollars)Interest rate risk
Interest rate swap
transactions
USD(Millions of U.S. dollars)
SEK(Millions of
Swedish kronas)
EUR(Millions of euros)
AUD(Millions ofAustralian dollars)Interest rate andcurrency swap transactions
USD(Millions of U.S. dollars)
AUD(Millions ofAustralian dollars)- 80 -

(b) Carrying amount of hedging instruments
Transition date (April 1, 2015)(Millions of yen)Line items on theConsolidated Statement of
Financial Position

Carrying amount of hedging instruments
AssetsLiabilities

Foreign currency risk
Foreign currency forward
contracts transactions
Foreign currency option
contract transactions
Total foreign currency
risk

Other financial assets andliabilities
Other financial assets andliabilities
Other financial assets andliabilities

1,053

2,015

48

118

1,101

2,134

63

515

Other financial assets andliabilities

18,136717

Other financial assets andliabilities

Total interest rate risk

18,1991,233

Total hedging instruments

19,3003,367Interest rate risk
Interest rate swap
transactions
Interest rate andcurrency swap
transactions

Other financial assets andliabilities
Other financial assets andliabilities

FY2016 (April 1, 2015– March 31, 2016)(Millions of yen)Line items on theConsolidated Statement of
Financial Position

Carrying amount of hedging instruments
AssetsForeign currency risk
Foreign currency forward
contracts transactions
Foreign currency option
contract transactions
Total foreign currency
risk

Liabilities

Other financial assets andliabilities
Other financial assets andliabilities
Other financial assets andliabilities

2,310

559

89

34

2,399

594

38

683

Other financial assets andliabilities

12,6092,885

Other financial assets andliabilities

Total interest rate risk

12,6483,569

Total hedging instruments

15,0474,164Interest rate risk
Interest rate swap
transactions
Interest rate andcurrency swap
transactions- 81 -

Other financial assets andliabilities
Other financial assets andliabilities

FY2017 (April 1, 2016– March 31, 2017)(Millions of yen)Line items on theConsolidated Statement of
Financial Position

Carrying amount of hedging instruments
AssetsLiabilities

Foreign currency risk
Foreign currency forward
contracts transactions
Foreign currency option
contract transactions
Total foreign currency
risk

Other financial assets andliabilities
Other financial assets andliabilities
Other financial assets andliabilities

650

1,144

142

72

793

1,217

345

125

Other financial assets andliabilities

13,462

2,217

Other financial assets andliabilities

Total interest rate risk

13,807

2,342

Total hedging instruments

14,6003,560Interest rate risk
Interest rate swap
transactions
Interest rate andcurrency swap
transactions

Other financial assets andliabilities
Other financial assets andliabilities

The carrying amount of surplus in cash flow hedges on the transition date, the fiscal year ended March 31, 2016 andthe fiscal year ended March 31, 2017 consist of the following.
(Millions of yen)Transition date
(April 1, 2015)
Surplus in cash flow
hedges

FY2016(As of March 31, 2016)(679)

FY2017(As of March 31, 2017)(1,235)6(ii) Effects of hedges on the consolidated statements of profit or loss and other comprehensive income (loss)
Profit (loss) from hedges in the fiscal years ended March 31, 2016 and 2017 consist of the following.
FY2016 (April 15, 2015– March 31, 2016)(Millions of yen)
Cash flow hedges

Changes in the value ofhedging instruments
recognized in othercomprehensive income

Amount transferred fromsurplus in cash flow
hedges to profit or loss

Foreign currency risk

1,564

(1,183)

Interest rate risk

(467)

(469)

Line items affected bytransfers in profit or loss
Net sales,
Financial income,Financial expenses
Financial income,Financial expenses

FY2017 (April 15, 2016– March 31, 2017)(Millions of yen)
Cash flow hedges

Changes in the value ofhedging instruments
recognized in othercomprehensive income

Amount transferred fromsurplus in cash flow
hedges to profit or loss

Foreign currency risk

(943)

650

Interest rate risk

1,633

(98)

- 82 -

Line items affected bytransfers in profit or loss
Net sales,
Financial income,Financial expenses
Financial income,Financial expenses

30. Leases(1) Finance Leases(i) As lessor
Toyota Industries leases mainly machinery and vehicles which are classified as finance leases.
The total amount and present value of the minimum future lease fees receivable based on finance leases consist of
the following.
(Millions of yen)
Total amount of the minimum futurelease fees receivable

Present value of minimum lease fees receivable

FY2016FY2017FY2016FY2017
Transition date
Transition date
(As of March 31, (As of March 31,(As of March 31, (As of March 31,(April 1, 2015)(April 1, 2015)
2016)
2017)
2016)
2017)
Within one year

66,332

83,88587,81752,75268,80773,034

Over one year
but within fiveyears

143,676

170,429

167,685

106,125

131,495

128,426

Over five years

5,685

6,047

13,943

3,872

4,101

10,597

215,693

260,363

269,447

162,750

204,405

212,058(22,316)(21,672)(20,472)(30,626)(34,284)(36,915)

162,750

204,405

212,058

Total
Elimination:interest
equivalents
Elimination:
unwarranted
residual value
Present value of
total minimum
lease fees
receivable(ii) As lessee

Toyota Industries leases mainly machinery and vehicles which are classified as finance leases.
The total amount and present value of the minimum future lease fees payable based on finance leases consist of thefollowing.
(Millions of yen)
Total amount of the minimum futurelease fees payable

Present value of minimum lease fees payable

FY2016FY2017FY2016FY2017
Transition date
Transition date
(As of March 31, (As of March 31,(As of March 31, (As of March 31,(April 1, 2015)(April 1, 2015)
2016)
2017)
2016)
2017)
Within one year

51,05546,36941,47048,84744,45340,254

Over one year
but within fiveyears

120,668

101,81277,292

117,201

98,87874,338Over five years

3,323

3,837

2,490

3,259

3,784

2,487

175,047

152,019

121,253

169,308

147,116

117,080(5,739)(4,902)(4,172)

169,308

147,116

117,080

Total
Elimination:interest
equivalents
Present value oflease obligations- 83 -

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 total amount of the expected minimum future lease fees receivable based on non-cancellable sub-lease agreements
consist of the following.
(Millions of yen)
FY2017(As of March 31, 2017)

FY2016(As of March 31, 2016)
The total amount of the expected minimum
future lease fees

117,763

95,938(2) Operating leases(i) As lessor
Toyota Industries leases machinery and vehicles under cancellable or non-cancellable operating leases. The
minimum future lease fees receivable based on non-cancellable operating lease agreements consist of the following.
(Millions of yen)Transition date
FY2016FY2017(April 1, 2015)(As of March 31, 2016)(As of March 31, 2017)
Within one year
Over one year but
within five years
Over five years

18,486

48,64255,20938,596

83,20088,094

752

710

1,297

Total

57,835132,553

144,601(ii) As lessee
Toyota Industries leases machinery and vehicles under cancellable or non-cancellable operating leases. The
minimum future lease fees payable based on non-cancellable operating lease agreements consist of the following.
(Millions of yen)Transition date
FY2016FY2017(April 1, 2015)(As of March 31, 2016)(As of March 31, 2017)
Within one year
8,837
7,290
8,604
Over one year but
24,497
17,056
18,632
within five years
Over five years
5,570
1,178
2,126
Total

38,90525,52629,363The lease fees recognized as expenses consist of the following.
FY2016(April 1, 2015– March 31, 2016)
Lease fees

7,686

- 84 -(Millions of yen)
FY2017(April 1, 2016– March 31, 2017)
8,422

31. Discontinued Operations
The Company sold its shares of Asahi Security Co., Ltd. and Wanbishi Archives Co., Ltd., which were consolidated
subsidiaries responsible for its core operations of the Logistics Business, in December 2015 and classified bothcompanies as discontinued operations in the fiscal year ended March 31, 2016.
The shares of Asahi Securities and Wanbishi Archives were sold to SECOM Co., Ltd. and Nippon Express Co., Ltd.,
respectively, with payment in cash and other properties only.
1) Analysis of profit and loss of discontinued operations(Millions of yen)
FY2016(April 1, 2015– March 31,
2016)

FY2017(April 1, 2016– March 31,
2017)45,048(32,119)－－

Profit and loss of discontinued operations
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Other income
Other expenses
Operating profit
Financial income
Financial expenses
Share of profit of investments accounted forby the equity method
Gains on sales of shares of subsidiaries
Profit before income taxes from discontinued operations
Income tax expenses
Profit from discontinued operations
2) Sales consideration
167,000 million yen
3) Main items of the assets and liabilities regarding sold subsidiaries
Cash and cash equivalents
Cash deposits for cash collection
and deposit services
Receivables - trade26,902

Property, plant and equipment

30,083

Other assets

10,062

Total assets

172,410

Deposits received

99,148

Accrued expenses

2,430

Lease obligations

12,818Net defined benefit liabilities

3,560

Other liabilities

13,726

Total liabilities

131,684

98,764
6,597- 85 -

million yen

12,929－(6,882)
113

－
－

(223)

－

5,936

－

21
(113)

－
－

3

－

87,176－93,025－(31,590)－

61,435－

4) An analysis of cash flows from discontinued operations(Millions of yen)
FY2016(April 1, 2015– March 31,
2016)

FY2017(April 1, 2016– March 31,
2017)Cash flows from discontinued operations:－

Cash flows from operating activities
Cash flows from investing activities

47,207
149,380－－

Cash flows from financing activities

(35)

－

196,552－Total
32. Related Party Transactions

The transactions between Toyota Industries and related parties and the outstanding receivables and payables consist of
the following.
(1) Transactions with related parties and outstanding receivables and payables
Toyota Industries has transactions with the following related parties.
FY2016(April 1, 2015– March 31, 2016)
Toyota Motor Corporation and its
subsidiaries:
Sales of goods and provision ofservices
Purchase of parts and receipt ofservices(Millions of yen)
FY2017(April 1, 2016– March 31, 2017)

197,903205,938

22,032

22,841

Net sales and cost of sales are recorded at the time of repurchase under Japanese GAAP, under IFRS, on the other
hand, only net amounts of machining cost equivalents are recognized as revenue. As a result, net sales to Toyota
Motor Corporation decreased 490,755 million yen and 561,736 million yen for the fiscal years ended March 31, 2016
and 2017, respectively.
The unsettled balance on the above transactions and its allowance for credit losses consist of the following.
(Millions of yen)Transition date
(April 1, 2015)
Toyota Motor Corporation and its
subsidiaries:
Trade receivables and otherreceivables
Allowance for doubtful accounts
Trade payables and other payables

24,007FY2016(As of March 31, 2016)

FY2017(As of March 31, 2017)

44,99438,983－1

149,374

59,247

68,950- 86 -

(2) Principal management personnel compensation
FY2016 (April 1, 2015– March 31, 2016)(Millions of yen)
Total compensation by type

Total amount ofcompensation
Principal management
personnel

Basic compensation
1,194

Bonuses
774

420

FY2017 (April 1, 2016– March 31, 2017)(Millions of yen)
Total compensation by type

Total amount ofcompensation
Principal management
personnel

Basic compensation
863

Bonuses
598

265

33. Contingencies
There are no material contingent liabilities that need to be disclosed as of the transition date, the end of the fiscal year
ended March 31, 2016 and the end of fiscal year ended March 31, 2017.
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 7,473 million yen, 11,718 million yen and23,298 million yen as of the transition date, the end of the fiscal year ended March 31, 2016 and the end of the fiscal
year ended March 31, 2017, respectively.

- 87 -

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 as of the transition date as well as during the fiscal years ended March 31, 2016
and 2017.

Location

Principal Business
Automobile
Automobile

100.00Aichi Corporation

Ageo-shi, Saitama

Toyota Industrial Equipment Mfg., Inc.

Indiana, U.S.A.

Toyota Material
France S.A.S

Ancenis, France

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

100.00

Taikoh Transportation Co., Ltd.

Oguchi-cho, Aichi
Iwata-shi,
ShizuokaObu-shi, Aichi
Shinagawa-ku,
TokyoKariya-shi, Aichi

Percentage of Voting
Rights of The Company(%)
100.00Automobile

60.00

Company Name
Tokyu Co., Ltd.
Tokaiseiki Co., Ltd.
IZUMI MACHINE MFG. CO., LTD.
TOYOTA L&F Tokyo Co., Ltd.

Handling

Manufacturing100.0054.04
52.23
100.00100.00Michigan 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 U.S.A. Inc.

Indiana, U.S.A.

Materials Handling
Equipment

100.00TD Deutsche Klimakompressor GmbH

Sachsen, Germany

Automobile

65.00

New South Wales,
Australia

Materials Handling
Equipment

100.00Automobile

77.40

Textile Machinery

100.00Toyota Material
LimitedHandling

Australia

Pty

TD Automotive Compressor Georgia, LLC

Georgia, U.S.A.

Uster Technologies AG

Zurich, Switzerland

Industrial Components and Attachments, Inc

Oregon, U.S.A.

Cascade Corporation

Oregon, U.S.A.

Toyota Industry (Kunshan) Co., Ltd.

Jiangsu, China

Toyota Industries Commercial Finance, Inc

Texas, U.S.A.

Yantai Shougang TD AutomotiveCompressor Co., Ltd.

Shandong, China- 88 -

Materials Handling
Equipment
Materials Handling
Equipment

Materials Handling
Equipment
Materials Handling
Equipment
Automobile

100.00100.00100.00100.0063.40

Materials Handling
Equipment

100.00Automobile

50.10

36. Subsequent Events(Business combination through acquisition)
On May 18, 2017, Toyota Industries Europe AB, the Company's holding company for the Materials Handling Equipment
Business in Europe, acquired Netherland-based Vanderlande Industries Holding B.V., which engages in the logistics
solutions business on a global scale. The outline of the acquisition is as follows.
1. Outline of business combination(1) Name and business of acquiree
Name: Vanderlande Industries Holding B.V. (hereinafter, "Vanderlande")
Business content: Logistics solutions business(2) Main purpose of business combination
By making Vanderlande a consolidated subsidiary, the Company aims for further growth through globally providing new
types of logistics solutions that customers demand.
(3) Date of business combination
May 18, 2017(4) Measure of business combination
Stock acquisition(5) Name of acquiree after business combination
Vanderlande Industries Holding B.V.
(6) Acquired voting rights ratio
Voting rights ratio of 100% after the acquisition(7) Basis of determination of acquirer
Owing to (2), it is evident that the consolidated subsidiary of the Company holds a majority of the voting rights andcontrols the decision-making body.
2. Content and amount of principal acquisition-related expenses
Consideration for acquisition (cash): 144,639 million yen
Acquisition cost: 144,639 million yen
3. Amount of goodwill generated
Currently in the process of determining(Business combination through acquisition)
On April 3, 2017, Toyota Advanced Logistics Solutions, Inc., the Company's subsidiary in North America, acquired U.S.based Bastian Solutions LLC, a leading system integrator in North America. The outline of the acquisition is as follows.
1. Outline of business combination(1) Name and business of acquiree
Name: Bastian Solutions LLC (hereinafter, "Bastian")
Business content: Logistics solutions business(2) Main purpose of business combination
By making Bastian a consolidated subsidiary, the Company aims for full-fledged entry into the logistics solutions
business in North America, where significant growth is anticipated.
(3) Date of business combination
April 3, 2017(4) Measure of business combination
Stock acquisition(5) Name of acquiree after business combination- 89 -

Bastian Solutions LLC(6) Acquired voting rights ratio
Voting rights ratio of 100% after the acquisition(7) Basis of determination of acquirer
Owing to (2), it is evident that the consolidated subsidiary of the Company holds a majority of the voting rights andcontrols the decision-making body.
2. Content and amount of principal acquisition-related expenses
Consideration for acquisition (cash): 29,648 million yen
Acquisition cost: 29,648 million yen
3. Amount of goodwill generated
Currently in the process of determining
37. Disclosure on Transition to IFRS
Toyota Industries has disclosed consolidated financial statements based on IFRS since the annual securities report for
the fiscal year ended March 31, 2017. The transition date to IFRS is April 1, 2015.
(1) IFRS 1 Exemption Rules
IFRS requires an entity which adopts IFRS for the first time to retroactively apply the standards required by IFRS inprinciple. However, IFRS 1 sets out that the exemption rules may be applied voluntarily for some of the standards required
by IFRS. The effects of applying these rules are adjusted in retained earnings or other components of equity as of thetransition date.
The following describes the main voluntary exemption rules applied by Toyota Industries.
● Business combinations
An entity first adopting IFRS may choose not to retroactively apply IFRS 3 to business combinations taking place before
the transition date. Adopting the exemption rule, Toyota Industries has chosen not to retroactively apply IFRS 3 tobusiness combinations that took place before the transition date. As a result, goodwill arising from business combinations
before the transition date is based on the carrying amount under Japanese GAAP. Regarding goodwill, an impairment test
was conducted as of the transition date regardless of whether there were signs of impairment or not.
● Translation adjustments of foreign operations
Under IFRS 1, the accumulated translation adjustments of foreign operations as of the transition date may be chosen to be
regarded as zero. Accordingly, Toyota Industries regards as zero the accumulated transition adjustments of foreign
operations as of the transition date.
● Designation of financial instruments recognized in the past
Based on the existing facts and situation as of the transition date, Toyota Industries has designated investments in equity
financial instruments to be measured at fair value through other comprehensive income.
(2) Compulsory Exemption Rules to the Retroactive Application of IFRS 1IFRS 1 prohibits the retroactive application of IFRS to "estimates", "suspension of recognition of financial assets andliabilities", "hedge accounting", "non-controlling interests" and "classification and measurement of financial assets". The
Company applies IFRS to these items from the transition date and thereafter.

- 90 -

(3) Adjustment Tables
The following is the adjustment tables required to be disclosed for the first adoption of IFRS.
Adjustments to equity as of the transition date (April 1, 2015)(Millions of yen)Japanese GAAPLine item(Assets)
Current assets

AmountRecognizedandReclassification
measureddifference
AmountAmountIFRSAmountNotes

Cash and deposits

247,273

1,433－

248,706

Short-term investments
Cash deposits for cash
collection and deposit
services

34,085(34,085)－－

58,250(58,250)－－－

475,967(552)

475,415(6)－

91,472716

92,189(7)

265,504(265,504)－－

191,583
194,837
24,234(191,583)－(24,234)－(1,889)－－
192,947
－

―

8,640

―

8,640

―
68,60335,793(68,603)

2,132－

37,926－

Trade notes and accounts
receivable
Lease investment assets
Inventories
Deferred tax assets

Other current assets
Allowance for doubtful
accounts
Total current assets
Fixed assets
Property, plant andequipment(3,756)

3,756

－

－

1,080,615(25,197)406

1,055,825

707,532(431)

33,069740,171

Intangible assets

192,702－

10,340203,042

－

243

755

999

－

14,311

20

14,332－2,593,522

2,606,520(2,593,522)

70,698－2,677,218－

Net defined benefit assets

28,289－(6,005)22,283

Deferred tax assets
Lease investment assets
Other investments andother assets
Allowance for doubtful
accounts

18,228243

15,829(243)(2,245)－31,812－

30,622(30,622)

－

－

(860)

860

－

－

－

3,425

303

3,729

Total fixed assets

3,570,280

16,372

106,936

3,693,589

Total assets

4,650,896(8,824)

107,343

4,749,415

Investment securities- 91 -

Line item
AssetsCurrent assets
Cash and cash
equivalents

Trade receivables andother receivables
Other financial assets

Inventories
Income tax
receivables
Other current assets

Total current assets
Non-current assets
Property, plant and(1),(6)equipment
Goodwill and(2)
intangible assets
Trade receivables and(6)other receivables
Investments
accounted for by theequity method(5),(7) Other financial assets―
Net defined benefit
assets(10) Deferred tax assets

Other non-current
assetsTotal non-current
assetsTotal assets

(Millions of yen)Japanese GAAPLine item(Liabilities)
Current liabilities
Trade notes and accounts
payableAmountRecognizedandReclassification
measureddifference
AmountAmountIFRSAmount205,816(205,816)－－－

330,569

24,074354,643

146,789－－－

135,740

2,926

45,66529,245
13,686636(45,665)(29,245)
1,538
(636)

－
－
－
－

626

(626)

－

－

210,721－－653,187(210,721)
5,653
19,072(136)－－－
27,000－5,653
19,072680,051

607,152－

18,229625,382

117,185(117,185)－－－

117,234

4,397

86,766－

1,295－
737,268
23,404

6,245(7,768)(23,404)－
27,084－－

16,190(1,262)

Total long-term liabilities

1,571,779(8,688)49,743

Total liabilities(Net assets)
Capital stock
Capital surplus
Retained earnings
Treasury stock
Accumulated othercomprehensive income
Subscription rights to shares

2,224,967(8,824)76,74480,462
105,592
644,165(41,509)

－
－
－
－

－
－
61,356－

1,567,509

72(26,319)

72

(72)

－

69,636－(4,438)2,425,929－

30,5984,650,896(8,824)

107,343

Corporate bonds andloans

Lease obligations
Accounts payable— otherAccrued income taxes
Deferred tax liabilities
Allowance for bonuses todirectors
Other current obligations

Total current liabilities
Long-term liabilities
Corporate bonds andloans
Lease obligations

Net defined benefit
liabilities
Deferred tax liabilities
Other long-term liabilities

Non-controlling interests
Total net assets
Total liabilities and net
assets- 92 -

Notes

Line item
Liabilities and equity
Liabilities
Current liabilities

Trade payables andother payables
Corporate bonds and146,789
loans
Other financial
138,667 (6),(7)liabilities－－
15,225
Accrued income taxes
－
(3)

(7)

Provisions
Other current liabilities
Total current liabilities
Non-current liabilities
Corporate bonds andloans

Other financial
liabilities
Net defined benefit
88,062
liabilities
6,245
Provisions
756,584 (4),(5) Deferred tax liabilities－
Other non-current
14,927 (3),(8)liabilities
Total non-current
1,612,834
liabilities
2,292,886
Total liabilities
Equity80,462
Capital stock
105,592
Capital surplus
705,521 (3),(9) Retained earnings(41,509)
Treasury stock(3),(4), Other components of
1,541,262(5),(9) shareholders' equity－
Non-controlling
65,198 (8)interests
2,456,528
Total equity
Total liabilities and
4,749,415
equity121,632 (6),(7)Notes on Adjustments to Equity(1) Property, plant and equipment
The declining-balance method was mainly adopted under Japanese GAAP for the depreciation of property, plant andequipment; under IFRS, on the other hand, the straight-line method is adopted. Moreover, the useful lives of property,
plant and equipment is changed due to the application of IFRS. As a result, the balance of property, plant and equipment
increased 29,600 million yen.
(2) Development assets
Under Japanese GAAP, all expenditures for research and development are recorded as expenses when incurred; on theother hand, under IFRS, research and development expenses, which meet the requirements for capitalization as assets,are recognized as an intangible asset. As a result, goodwill and intangible assets increased 11,325 million yen.
(3) Employee benefits
Unused paid leave and other long-term employee benefits were not required to be accounted for under Japanese GAAP,
while they are recognized as liabilities under IFRS. As a result, trade payables and other payables (current) increased
22,212 million yen, and other non-current liabilities increased 3,418 million yen.
Actuarial differences in obligations under defined benefit plans are recognized by Japanese GAAP as othercomprehensive income when incurred and the amount appropriated by a certain number of years within the averageremaining service period of employees is recorded as an expense from the year following occurrence; under IFRS,
actuarial differences are recognized as other comprehensive income when incurred and are immediately transferred toretained earnings.
(4) Effective tax rate (pro forma standard taxation)
The value-added portion of pro forma standard taxation is not included in the calculation of the effective tax rate underJapanese GAAP; under IFRS, however, it is included in the effective tax rate to calculate tax effect accounting. As a result,deferred tax liabilities increased 13,942 million yen, and other components of shareholders' equity decreased 14,325
million yen.
(5) Measuring financial Instruments (unlisted stock)
Unlisted stock is recorded based on the acquisition cost and written down in accordance with the deterioration of issuing
companies; under IFRS, on the other hand, they are measured at fair value through other comprehensive income. As aresult, other financial assets (non-current) increased 52,041 million yen, deferred tax liabilities increased 16,802 million
yen, and other components of shareholders' equity increased 34,240 million yen.
(6) Foundry
The equal installment payment for foundry and leased facilities is recorded as sales and cost of sales equally for a certain
period under Japanese GAAP; under IFRS, on the other hand, it is treated as finance leases if it meets specificrequirements. As a result, property, plant and equipment increased 4,425 million yen, trade receivables and otherreceivables(current) increased 907 million yen, trade receivables and other receivables (non-current) increased 755 million
yen, other financial liabilities (current) increased 2,638 million yen and other financial liabilities (non-current) increased
3,818 million yen.

- 93 -

(7) Hedge accounting (corporate bonds and loans)
Regarding the derivative transactions to avoid foreign currency risks of corporate bonds and loans, special treatment andintegrated processing by hedge accounting are adopted under Japanese GAAP; under IFRS, on the other hand, they aremeasured at fair value as of the end of the consolidated fiscal year. As a result, other financial assets (current) increased
716 million yen, other financial assets (non-current) increased 18,156 million yen. Moreover, corporate bonds and loans(non-current) increased 18,550 million yen, other financial liabilities (current) increased 290 million yen, and other financial
liabilities (non-current) increased 577 million yen.
(8) Share-based compensation
The share-based compensation program for management adopted by some subsidiaries in overseas was recognized as acapital transaction under Japanese GAAP; under IFRS, on the other hand, it is recorded under liabilities as a cash-settled
share-based compensation transaction. As a result, other non-current liabilities increased 5,550 million yen, while noncontrolling interests decreased 5,058 million yen.
(9) Transfer of foreign currency translation adjustment to retained earnings
With the adoption of the exemption rule stipulated by IFRS 1, the outstanding accumulated translation difference forsubsidiaries outside Japan of 55,598 million yen as of the transition date was fully transferred to retained earnings on thetransition date.
(10) Recoverability of deferred tax assets
Regarding the recoverability of deferred tax assets, after considering the possibility of taxable profits being generated that
could be used to utilize the benefits of the deductible temporary differences on the basis of IFRS, deferred tax assets
increased 4,334 million yen.
Adjustments to retained earnings(Millions of yen)Transition date(April 1, 2015)(1) Property, plant and equipment

19,815(2) Development assets

7,686(3) Employee benefits(33,696)(9) Transfer of foreign currency translation adjustment
to retained earnings

55,598(10) Recoverability of deferred tax assets

4,334

Other

7,618

Total

61,356- 94 -

Adjustments to equity for FY2016 (April 1, 2015– March 31, 2016)(Millions of yen)Japanese GAAPLine item

AmountRecognizedandReclassification
measureddifference
AmountAmountIFRSAmount

Notes(Assets)
Current assets
Cash and deposits

352,302(259,903)－

92,399

Short-term investments

10,871(10,871)－－－625,276(1,035)624,240(6)－

272,366

1,044

273,410(7)

280,807(280,807)－－

235,598
197,20225,185(235,598)－(25,185)－(1,219)－－195,982
－

―

7,170

―

7,170

―
159,054

36,722(159,054)

2,235－

38,958－Trade notes and accounts
receivable
Lease investment assets
Inventories
Deferred tax assets

Other current assets
Allowance for doubtful
accounts
Total current assets
Fixed assets
Property, plant andequipment(3,796)

3,796

－

－

1,257,226(26,088)

1,023

1,232,161

781,251(415)

34,562815,399

Intangible assets

170,214－

18,992

189,207

－

141

863

1,005

－

13,572

21

13,593－
1,945,123

1,952,493(1,945,123)

75,790－2,028,284－

Net defined benefit assets

8,215

－

3,435

11,651

Deferred tax assets
Lease investment assets
Long-term loans
receivable
Other investments andother assets
Allowance for doubtful
accounts

14,109141

10,604(141)(2,115)－

22,599－4,163(4,163)－－

20,154(20,154)－－(1,403)

1,403

－

－

－

2,895

483

3,379

Total fixed assets

2,941,970

11,114132,035

3,085,121

Total assets

4,199,196(14,973)

133,059

4,317,282

Investment securities- 95 -

Line item
AssetsCurrent assets
Cash and cash
equivalents
Trade receivables andother receivables
Other financial assets

Inventories
Income tax
receivables
Other current assets

Total current assets
Non-current assets
Property, plant and(1),(6)equipment
Goodwill and(2),(8)intangible assets
Trade receivables and(6)other receivables
Investments
accounted for by theequity method(5),(7) Other financial assets
Net defined benefit
assets(11) Deferred tax assets

Other non-current
assetsTotal non-current
assetsTotal assets

(Millions of yen)
RecognizedandReclassification
measureddifference
AmountAmountJapanese GAAPLine item(Liabilities)
Current liabilities
Trade notes and accounts
payableAmountIFRSAmount214,162(214,162)－－－

332,876

23,005355,882

190,844－－－

72,5382,902

41,41125,75447,473
149(41,411)(25,754)
577
(149)

－
－
－
－

644

(644)

－

－

153,195－－
673,636(153,195)
9,336
20,186
196－－―
25,908－
9,336
20,186
699,741

700,149－

11,275

711,424

98,771(98,771)－－－

98,777

7,470

90,920－(1,978)－500,077
21,692

6,888(14,430)(21,692)－
32,207－－

14,0582,810

Total long-term liabilities

1,411,611(15,169)

51,785

Total liabilities(Net assets)
Capital stock
Capital surplus

2,085,248(14,973)

77,69480,462
105,562

－
－

－
(44)

Retained earnings

789,502－65,815

Treasury stock(41,266)－－

1,102,547

6(3,926)6(6)－

Non-controlling interests

77,133－(6,478)

Total net assets
Total liabilities and net
assets2,113,948－

55,365

4,199,196(14,973)

133,059

Corporate bonds andloans

Lease obligations
Accounts payable— otherAccrued income taxes
Deferred tax liabilities
Allowance for bonuses todirectors
Other current obligations

Total current liabilities
Long-term liabilities
Corporate bonds andloans
Lease obligations

Net defined benefit
liabilities
Deferred tax liabilities
Other long-term liabilities

Accumulated othercomprehensive income
Subscription rights to shares- 96 -

Notes

Line item
Liabilities and equity
Liabilities
Current liabilities

Trade payables andother payables
Corporate bonds and
190,844
loans
Other financial
75,440 (6),(7)liabilities－－
48,051
Accrued income taxes
－
(3)

(7)

Provisions
Other current liabilities
Total current liabilities
Non-current liabilities
Corporate bonds andloans

Other financial
liabilities
Net defined benefit
88,942
liabilities
6,888
Provisions
517,854 (4),(5) Deferred tax liabilities－
Other non-current
16,868 (3),(9)liabilities
Total non-current
1,448,227
liabilities
2,147,969
Total liabilities
Equity80,462
Capital stock
105,517
Capital surplus(3),(10855,317
Retained earnings)(41,266)
Treasury stock(3),(4),
Other components of
1,098,627 (5),(10shareholders' equity)－
Non-controlling
70,655 (9)interests
2,169,313
Total equity
Total liabilities and
4,317,282
equity106,248 (6),(7)Notes on Adjustments to Equity(1) Property, plant and equipment
The declining-balance method was mainly adopted under Japanese GAAP for the depreciation of property, plant andequipment; under IFRS, on the other hand, the straight-line method is adopted. Moreover, the useful lives of property,
plant and equipment is changed due to the application of IFRS. As a result, the balance of property, plant and equipment
increased 29,836 million yen.
(2) Development assets
Under Japanese GAAP, all expenditures for research and development are recorded as expenses when incurred; on theother hand, under IFRS, research and development expenses, which meet the requirements for capitalization as assets,are recognized as an intangible asset. As a result, goodwill and intangible assets increased 11,865 million yen.
(3) Employee benefits
Unused paid leave and other long-term employee benefits were not required to be accounted for under Japanese GAAP,
while they are recognized as liabilities and expenses under IFRS. As a result, trade payables and other payables (current)
increased 23,158 million yen and other non-current liabilities increased 3,380 million yen.
Actuarial differences in obligations under defined benefit plans are recognized by Japanese GAAP as othercomprehensive income when incurred and the amount appropriated by a certain number of years within the averageremaining service period of employees is recorded as an expense from the year following occurrence; under IFRS,
actuarial differences are recognized as other comprehensive income when incurred and are immediately transferred toretained earnings.
(4) Effective tax rate (pro forma standard taxation)
The value-added portion of pro forma standard taxation is not included in the calculation of the effective tax rate underJapanese GAAP; under IFRS, however, it is included in the effective tax rate to calculate tax effect accounting. As a result,deferred tax liabilities increased 12,044 million yen and other components of shareholders' equity decreased 12,748
million yen.
(5) Measuring financial instruments (unlisted stock)
Unlisted stock is recorded based on the acquisition cost and written down in accordance with the deterioration of issuing
companies; under IFRS, on the other hand, they are measured at fair value through other comprehensive income. As aresult, other financial assets (non-current) increased 62,764 million yen, deferred tax liabilities increased 19,389 million
yen and other components of shareholders' equity increased 42,356 million yen.
(6) Foundry
The equal installment payment for foundry and leased facilities is recorded as sales and cost of sales equally for a certain
period under Japanese GAAP; under IFRS, on the other hand, it is treated as finance leases if it meets specificrequirements. As a result, Property, plant and equipment 3,794 million yen, trade receivables and other receivables(current) increased 1,549 million yen, trade receivables and other receivables (non-current) increased 863 million yen,other financial liabilities (current) increased 2,795 million yen and other financial liabilities (non-current) increased 4,138
million yen.

- 97 -

(7) Hedge accounting (corporate bonds and loans)
Regarding the derivative transactions to avoid foreign currency risks of corporate bonds and loans, special treatment andintegrated processing by hedge accounting are adopted under Japanese GAAP; under IFRS, on the other hand, they aremeasured at fair value as of the end of the consolidated fiscal year. As a result, other financial assets (current) increased
1,044 million yen, other financial assets (non-current) increased 12,609 million yen. Moreover, corporate bonds and loans(non-current) increased 11,585 million yen, other financial liabilities (current) increased 107 million yen and other financial
liabilities (non-current) increased 3,331 million yen.
(8) Goodwill
Goodwill was amortized equally within no more than 20 years under Japanese GAAP in principle; under IFRS, on theother hand, it has not been amortized since the transition date, while an impairment test is conducted for every fiscal year.
As a result, goodwill and intangible assets increased 10,369 million yen.
(9) Share-based compensation
The share-based compensation program for management adopted by some subsidiaries in overseas was recognized as acapital transaction under Japanese GAAP; under IFRS, on the other hand, it is recorded under liabilities as a cash-settled
share-based compensation transaction. As a result, other non-current liabilities increased 6,465 million yen, while noncontrolling interests decreased 5,857 million yen.
(10) Transfer of foreign currency translation adjustment to retained earnings
With the adoption of the exemption rule stipulated by IFRS 1, the outstanding accumulated translation difference forsubsidiaries outside Japan of 55,598 million yen as of the transition date was fully transferred to retained earnings on thetransition date.
(11) Recoverability of deferred tax assets
Regarding the recoverability of deferred tax assets, after considering the possibility of taxable profits being generated that
could be used to utilize the benefits of the deductible temporary differences on the basis of IFRS, deferred tax assets
increased 4,079 million yen.
Adjustments to retained earnings(Millions of yen)
FY 2016(As of March 31, 2016)(1) Property, plant and equipment

20,009(2) Development assets

8,031(3) Employee benefits(40,334)(8) Goodwill

10,369(10) Transfer of foreign currency translation adjustment
to retained earnings

55,598(11) Recoverability of deferred tax assets

4,079

Other

8,062

Total

65,815- 98 -

Adjustments to profit attributable to owners of the parent and comprehensive income in FY2016 (April 1, 2015– March 31,
2016)(Millions of yen)Japanese GAAPLine item

Reclassification
AmountAmountRecognizedandmeasureddifference
AmountNet sales

2,243,220(45,048)(501,314)

Cost of sales(1,812,293)

30,756489,677

Gross profit

430,926(14,292)(11,637)

Selling, general andadministrative expenses(296,214)

5,536

23,783Operating profit
Non-operating profit
Non-operating expenses
Extraordinary profit－－
134,71278,095(27,408)
89,819－－11,595(12,707)(9,868)(78,095)
27,408(89,819)
67,131(13,122)(715)
750
12,182
－
－
－
133
(414)

－

638

(6)

Profit before income taxes

275,218(95,726)

11,895

Total income taxes(83,445)

31,502(922)－

64,224(2,789)191,772－

8,183

183,036－

11,2338,735－(3,049)ProfitProfit attributable to ownersof the parent
Profit attributable to noncontrolling interests- 99 -IFRS
AmountNotes
Line item(1),(2),
1,696,856
Net sales(7)(1),(3),(1,291,859)
Cost of sales(5),(7)404,997
Gross profit(2),(4), Selling, general and(266,894) (5),(6), administrative(8),(9) expenses
10,879Other income(11,956)
Other expenses
137,026
Operating profit－－－
67,264
Financial income(13,536)(5) Financial expenses
Share of profit (loss)of investments
632
accounted for by theequity method
Profit before income
191,386
taxes(52,865)(6) Income taxes
Profit (loss) from61,435
discontinued
operations
199,956
ProfitProfit attributable to194,270
owners of the parent
Profit attributable to
5,685(9) non-controllinginterests

(Millions of yen)Japanese GAAPLine item
ProfitReclassification
Amount191,772

AmountRecognizedandmeasureddifference
Amount

－

8,183

IFRS
Amount199,956

Other comprehensive
incomeValuation difference on
available-for-sale securities(417,966)

－

8,767

(409,198)

Defined benefit planadjustments(14,872)－

7,849(7,022)

－

(18)

－

(18)

(416,239)

Foreign currency translation
adjustment(35,659)－

166(35,492)

Deferred gains or losses onhedges

379

－

(935)

(556)

－

(689)

－

(689)

(36,737)

Notes

Line item
ProfitOther comprehensive
incomeItems not to bereclassified into profit
or loss
Net changes inrevaluation of(10)
FVTOCIfinancial assets
Remeasurements of(5)
defined benefit
plans
Other
comprehensive
income of affiliates
accounted for by theequity method
Total items not to bereclassified into
profit or loss
Items that can bereclassified into
profit or loss
Translation
adjustmentsof foreign
operations
Cash flow hedges
Other
comprehensive
income of affiliates
accounted for by theequity method
Total items that canbe reclassified into
profit or loss

Share of othercomprehensive income ofaffiliated companies
accounted for using equity
method

(707)

707

－

－

Total other comprehensive
income(468,826)－

15,848(452,977)

Comprehensive income(277,053)－

24,032(253,021)

Profit attributable to ownersof the parent(281,925)－

26,851(255,074)

Owners of the parent(316,549)

Continuing operations
Discontinued
operations
Non-controllinginterests

61,475
Profit attributable to noncontrolling interests

4,871

－

- 100 -

(2,818)2,053

Total othercomprehensive
incomeComprehensive
incomeNotes on Adjustments for Profit and Loss and Comprehensive Income and Loss
(1) Supply-for-a-fee transactions
Regarding supply-for-a-fee transactions, net sales and cost of sales are recorded at the time of repurchase underJapanese GAAP; under IFRS, on the other hand, only net amounts of machining cost equivalents are recognized asrevenue. As a result, net sales decreased 490,913 million yen and cost of sales decreased 490,913 million yen.
(2) Promotion expenses
Rebates considered at the time of deciding sales terms were recorded as promotion expenses under selling, general andadministrative expenses; under IFRS, on the other hand, net sales are reduced. As a result, net sales decreased 12,382
million yen and selling, general and administrative expenses decreased 12,382 million yen.
(3) Property, plant and equipment (depreciation)
The declining-balance method was mainly adopted under Japanese GAAP for the depreciation of property, plant andequipment; under IFRS, on the other hand, the straight-line method is adopted. Moreover, service life has been changed
for certain property, plant and equipment. As a result, cost of sales increased 852 million yen.
(4) Development assets (research and development expenses)
Under Japanese GAAP, all expenditures for research and development are recorded as expenses when incurred; on theother hand, under IFRS, research and development expenses, which meet the requirements for capitalization as assets,are recognized as an intangible asset and amortized. As a result, selling, general and administrative expenses decreased
817 million yen.
(5) Employee benefits
Unused paid leave and other long-term employee benefits were not required to be accounted for under Japanese GAAP,
while they are recognized as liabilities and expenses under IFRS. As a result, cost of sales increased 373 million yen andselling, general and administrative expenses increased 528 million yen.
Actuarial differences in obligations under defined benefit plans and prior service cost are recognized by Japanese GAAP
as other comprehensive income when incurred. Also, the amount appropriated by a certain number of years within the
average remaining service period of employees is recorded as an expense from the year following occurrence. Under
IFRS, actuarial differences are recognized as other comprehensive income when incurred and prior service cost is treatedas a lump sum expense when incurred. Also, the discount rate applied to determine the defined benefit obligations mainlyrefers to the market yields on government bonds under Japanese GAAP. Under IFRS, however, it is based on the market
yields on high-quality corporate bonds, and therefore, the discount rate of the plan assets has been changed. As a result,
Toyota Industries observed a decrease in cost of sales of 57 million yen, selling, general and administrative expenses of
931 million yen, financial expenses of 414 million yen and an increase in other comprehensive income of 7,849 million yen.
(6) Effective tax rate (pro forma standard taxation)
The value-added portion of pro forma standard taxation is recorded in selling, general and administrative expenses underJapanese GAAP; under IFRS, on the other hand, it is recognized as an income tax expense. As a result, selling, generaland administrative expenses decreased 1,820 million yen, while income tax expenses increased 1,820 million yen.
(7) Foundry
The equal installment payment for foundry and leased facilities is recorded as sales and cost of sales equally for a certain
period under Japanese GAAP; under IFRS, on the other hand, it is treated as finance leases if it meets specificrequirements. As a result, net sales increased 1,146 million yen and cost of sales increased 1,106 million yen.

- 101 -

(8) Goodwill
Goodwill was amortized equally within no more than 20 years under Japanese GAAP in principle; under IFRS, on theother hand, it has not been amortized since the transition date, while an impairment test is conducted for every period. As
a result, selling, general and administrative expenses decreased 10,369 million yen.
(9) Share-based compensation
The share-based compensation program for management adopted by some subsidiaries in North America was recognized
as a capital transaction under Japanese GAAP; under IFRS, on the other hand, it is recorded in expenses as a cashsettled share-based compensation transaction. As a result, selling, general and administrative expenses increased 1,685
million yen, while profit attributable to non-controlling interests decreased 1,685 million yen.
(10) Measuring financial instruments (unlisted stock)
Unlisted stock is recorded based on the acquisition cost and written down in accordance with the deterioration of issuing
companies; under IFRS, on the other hand, they are measured at fair value through other comprehensive income. As aresult, other comprehensive income increased 8,115 million yen.
Notes on Reclassification of Lines
In addition to the above, Toyota Industries has reclassified line items to follow the provisions of IFRS. The following are themain changes:a) Cash and cash equivalents
Time deposits maturing within three months, which were included in cash and deposits under Japanese GAAP, areincluded in other financial assets under IFRS. Moreover, marketable securities maturing within three months, which were
included in marketable securities under Japanese GAAP, are included in cash and cash equivalents under IFRS.
b) Trade receivables and other receivables (current)
Trade notes and accounts receivable, lease investment assets and allowance for doubtful accounts, which were recorded
separately, as well as loans for sales financing, which were included in other current assets under Japanese GAAP, arepresented as trade receivables and other receivables (current) under IFRS.
c) Other financial assets (current)
Time deposits with a term of over three months, which were included in cash and deposits, as well as derivative assets,
which were included in other current assets under Japanese GAAP, are included in other financial assets (current) underIFRS.
d) Other current assets
Loans for sales financing, which were included in other current assets under Japanese GAAP, are presented as tradereceivables and other receivables (current) under IFRS. Moreover, derivative assets are presented as other financial
assets (current) under IFRS.
e) Trade receivables and other receivables (non-current)
Lease investment assets and allowance for doubtful accounts, which were recorded separately under Japanese GAAP,
are included in trade receivables and other receivables (non-current) under IFRS.
f) Investments accounted for by the equity method
Investments accounted for by the equity method, which were included in investment securities under Japanese GAAP,
are recorded separately as investments accounted for by the equity method under IFRS.

- 102 -g) Other financial assets (non-current)
Investment securities, which were recorded separately, as well as derivative assets, which were included in otherintangible assets under Japanese GAAP, are included in other financial assets (non-current) under IFRS.
h) Other non-current assets
Long-term prepaid expenses, which were included in other investments and other assets under Japanese GAAP, areincluded in other non-current assets under IFRS.
i) Deferred tax assets and deferred tax liabilities
Deferred tax assets, which were recorded as current assets under Japanese GAAP, have been reclassified as deferred
tax assets under non-current assets under IFRS. Moreover, deferred tax liabilities, which were recorded as current
liabilities under Japanese GAAP, have been reclassified as deferred tax liabilities under non-current liabilities under IFRS.
j) Trade payables and other payables
Trade notes and accounts payable, and accounts payable— other, which were recorded separately, as well as provision
for bonuses, which was included in other current obligations under Japanese GAAP, are presented as trade payables andother payables under IFRS.
k) Other financial liabilities (current)
Lease obligations, which were recorded separately, as well as derivative liabilities, which were included in other current
obligations under Japanese GAAP, are included in other financial liabilities (current) under IFRS.
l) Provisions (current)
Warranty provision and asset retirement obligations, which were included in other current obligations under Japanese
GAAP, are included in provisions (current) under IFRS.
m) Other current liabilities
Accrued expenses, which were included in other current obligations under Japanese GAAP, are included in trade
payables and other payables under IFRS. Moreover, employees' savings and deposits, which were included in othercurrent obligations under Japanese GAAP, are included in other financial liabilities (current) under IFRS.
n) Other financial liabilities (non-current)
Lease obligations, which were recorded separately, as well as derivative liabilities, which were included in other long-term
liabilities under Japanese GAAP, are included in other financial liabilities (non-current) under IFRS.
o) Provisions (non-current)
Warranty provisions and asset retirement obligations, which were included in other long-term liabilities under Japanese
GAAP, are included in other provisions (non-current) under IFRS.
p) Profit and loss of discontinued operations
Profit and loss of discontinued operations, which were included in individual line items including net sales and cost of
sales under Japanese GAAP, are all consolidated and presented, together with gain on sales of shares of subsidiaries,
which were included in extraordinary profit, as profit and loss from discontinued operations under IFRS.
q) Other income
Gain on sales of fixed assets, which was included in other non-operating profit under Japanese GAAP, is included inother income under IFRS.

- 103 -r) Other expenses
Loss on sales of fixed assets, which was included in other non-operating expenses under Japanese GAAP, is included inother expenses under IFRS.
s) Financial income
Interest income and dividends income, which were included in non-operating profit under Japanese GAAP, are includedin financial income under IFRS.
t) Financial expenses
Interest expenses, which were included in non-operating expenses under Japanese GAAP, are included in financial
expenses under IFRS.
u) Share of profit (loss) of investments accounted for by the equity method
Equity in net earnings of affiliated companies, which was included in non-operating profit under Japanese GAAP, isrecorded separately as share of profit (loss) of investments accounted for by equity method under IFRS.
Notes on Reclassification of Financial Statements under Japanese GAAP
From the fiscal year ended March 31, 2017 under Japanese GAAP, finance revenue and expense related to sales
financing business have been reclassified from non-operating profit and expense to operating profit and expense, and loan
receivable and lease investments related to sales financing business in fixed assets have been reclassified to current
assets. Under IFRS, these are presented as operating profit and expense, or current assets in the financial statements on
and after the transition date.
Adjustments to Consolidated Cash Flow
Cash flows generated from short-term loans payable were presented on a net basis under Japanese GAAP. However,under IFRS, short-term loans payable with the borrowing period of over three months are recorded on a gross basis
separately as proceeds from short-term loans payable (over three months) and repayments of short-term loans payable(over three months).

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II. [Other]
Quarterly information in the fiscal year ended March 31, 2017
(Cumulative period)
Net sales (millions ofyen)Profit before income
taxes (millions of yen)
Profit attributable toowners of the parent(millions of yen)
Earnings per share(yen)(Accounting period)
Quarterly earnings
per share (yen)First quarter

Second quarter

Third quarter

Full year

529,788

1,078,430

1,640,554

2,250,466

55,32584,305

148,502

177,121

41,26660,979107,431

125,534131.33194.29343.39402.00First quarter

Second quarter

131.33

62.88

Third quarter
149.42

Full year
58.30(Notes) 1. Quarterly information for the fiscal year ended March 31, 2017 has been prepared in accordance withJapanese GAAP.
(Notes) 2. Audits and reviews in accordance with Article 193-2, Paragraph 1 of the Financial Instruments andExchange Act have not been conducted for the consolidated fiscal year under review (April 1, 2016– March
31, 2017) and the fourth quarter of the consolidated fiscal year (January 1, 2017– March 31, 2017).

- 105 -

Independent Auditor’s Report
To the Board of Directors of Toyota Industries Corporation
We have audited the accompanying consolidated financial statements of Toyota Industries
Corporation (“the Company”) and its consolidated subsidiaries, which comprise the consolidated
statement of financial position as at March 31, 2017, and the consolidated statement of profit orloss, 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 consolidated
financial statements.
Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial
statements in accordance with International Financial Reporting Standards, and for such internal
control as management determines is necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our
audit. We conducted our audit in accordance with auditing standards generally accepted in Japan.
Those standards require that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the consolidated financial statements are free frommaterial misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the consolidated financial statements. The procedures selected depend on theauditor’s judgment, including the assessment of the risks of material misstatement of theconsolidated financial statements, whether due to fraud or error. In making those risk assessments,
the auditor considers internal controls relevant to the entity’s preparation and fair presentation of
the consolidated financial statements in order to design audit procedures that are appropriate in
the circumstances, while the purpose of the financial statement audit is not to express an opinion
on the effectiveness of the entity’s internal control. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of accounting estimates madeby management, as well as evaluating the overall presentation of the consolidated financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
OpinionIn our opinion, the consolidated financial statements present fairly, in all material respects, thefinancial position of the Company and its consolidated subsidiaries as at March 31, 2017, and theirfinancial performance and cash flows for the year then ended in accordance with International
Financial Reporting Standards.

- 106 -

To the Board of Directors of Toyota Industries Corporation
Page 2Emphasis of matter
1. We draw attention to Note 36 of the consolidated financial statements, which refers to
subsequent events. On May 18, 2017, Toyota Industries Europe AB, holding company of theCompany’s material handling equipment business in Europe, acquired Vanderlande Industries
Holding B.V.
2. We draw attention to Note 36 of the consolidated financial statements, which refers to
subsequent events. On April 3, 2017, Toyota Advanced Logistics Solutions, Inc., the Company’s
subsidiary in North America, acquired Bastian Solutions LLC.
Our opinion is not qualified in respect of these matters.

September 29, 2017

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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