Toyota Industries Report

2 0 12
Year ended March 31, 2012

We connect the world. We connect it with smiles.

We deliver smiles. We support everyday life.

A scene in everyday life filled with joyous laughter, where a family gathers around a tableand enjoys eating and talking. On the table are dishes of meat and fish, vegetables andfruits. Products from faraway farms are gathered, transported and delivered to homes.
Toyota Industries helps to connect the world with smiles.

Clean, safe and secure electric lift trucks operating in warehouses. Centering
around lift trucks*, which boast the world’s top market share, Toyota Industries
offers a wide range of products and services to solidly support logistics operations,
thereby enriching the lives of people around the world.
* World leader in unit sales; survey by Toyota Industries Corporation

Electric lift truck

Toyota Industries Report 20121

Toyota Industries Report 2012

Comfort that makes you smile

Beyond a pleasant breeze

When we go for a drive, we want to be comfortable, whether in hot or cold
weather, on a sunny or rainy day, or daytime or nighttime. We wish to create acomfortable atmosphere inside an automobile for children and adults alike.
Toyota Industries promises smiles for everyone enjoying a drive.

A compressor is the heart of a car air conditioner that keeps the internal atmosphereof an automobile always comfortable. Toyota Industries offers compressors that
automatically control the cooling performance of the air conditioner according totemperatures in and outside a vehicle and the engine’s operating status. The lineup
also includes electrically driven compressors for hybrid vehicles, which allow the air
conditioner to run during an idling stop. Built on leading-edge technologies, ourcompressors command the world’s top market share*.
Variable-displacement compressor

2

Toyota Industries Report 2012

* World leader in unit sales; survey by Toyota Industries Corporation3

Toyota Industries Report 2012

A soothing touch brings a feeling of luxuriance

Weaving caring and thoughtfulness into fabrics

We use towels every day. Their soft and plush texture is soothing. That moment brings a feelingof luxuriance. We value things we use daily. Because we use them every day, we choose ourvery favorites. Toyota Industries wishes to embrace people’s lives gently and softly.

Weaving machinery produces a variety of fabrics, including towels that are soft tothe touch. Toyota Industries is the leading manufacturer of air-jet looms*, which use
air to carry weft yarn. A great deal of caring and thoughtfulness go into the weaving
by our fast, low-vibration, energy-efficient looms with advanced functionality.
* World leader in unit sales; statistics from the International Textile Manufacturers Federation (ITMF), 2011

Air-jet loom

4

Toyota Industries Report 20125

Toyota Industries Report 2012

Message from the Chairman and President
We sincerely appreciate your support of Toyota Industries
Corporation and the Toyota Industries Group.

In the medium to long term, we remain firmly
committed to the concept of quality first. Recognizingthat responding to the environment and safety as well

Overall, the global economy in fiscal 2012 continued on

as improving our international competitiveness are key

a recovery path, reflecting economic growth in Asianissues, we will continue to engage in customer-oriented

countries, including China, and a gradual economic

development of products and advanced technologies.

upswing in the United States. On the domestic front,

In October 2011, the Toyota Industries Group

despite the serious economic impacts of the Great East

formulated our Vision 2020 and Medium-Term Management

Japan Earthquake and the strong yen, the JapanesePlan. The Vision 2020 expresses the aspired image of theeconomy moved gradually toward a recovery, with signs ofGroup over the next decade. Under the vision, we will

an upturn in consumer spending and private sector capital

support industries and social foundations around theinvestment.

world by continuously supplying products and services

In this situation, the Toyota Industries Group undertookthat anticipate customers’ needs in order to contribute toefforts to ensure customer trust through our dedication to

a comfortable society and enriched lifestyles. To achieve

quality and to expand sales by responding appropriately tothese goals, we will develop environment-conscious,

recovery trends in respective markets. We also promoted

energy-saving products based on 3Es (energy,

flexible plant operations to minimize the impacts of theenvironmental protection and ecological thinking),

earthquake and the flooding in Thailand on our production

incorporate functions and services needed by customers

activities. As a result, we were able to achieve increases inand deliver them to the global market. Through such

both sales and profits for fiscal 2012.

efforts, we aim for growth in each of Toyota Industries’

For the foreseeable future, the global economy isthree business units, specifically “solution” (materials

projected to show a continued trend toward recovery

handling equipment, logistics and textile machinery),underpinned by growth in China and other Asian“key components” (car air-conditioning compressors

countries. However, there is the risk of an economic

and car electronics) and “mobility” (vehicles and engines).

downturn that may be triggered by the ongoing European

The Medium-Term Management Plan lays down specificdebt crisis and deteriorating employment situation in theaction items for each business unit until fiscal 2016, under

United States. There are also uncertainties with regards towhich we will devote Group-wide efforts to realizing therising raw material costs, such as crude oil, and exchange

Vision 2020.

rate fluctuations. Consequently, the operating environmentis expected to remain harsh.

In closing, we ask for your continued understanding
and support.

Amid this environment, the Toyota Industries Group willcontinue to undertake concerted efforts to strengthen our

July 2012business foundation and tackle important management
matters to further increase our corporate value.
As an immediate task, we will proceed withmanagement platform and cost structure reforms torealize a solid business structure so that we can weather

Akira Imura
Chairmanany changes in the business climate. In each country andregion, we aim to establish a production and supply
structure to ensure optimum costs and delivery andenhance our value chain to provide a wide range of6

Toyota Industries Report 2012

Akira Imura

Tetsuro Toyoda

ChairmanPresident

Tetsuro Toyoda
President

services to customers.

In front of the Toyoda Automatic Loom,Type G, at the Technical Learning Center(Obu-shi, Aichi)

7

Toyota Industries Report 2012

Contents

Financial Highlights
Toyota Industries Corporation
Years ended March 31

PrologueMessage from the Chairman and President
Contents
Financial Highlights
Outline of Businesses
Top Management Interview

1-5
P 6-7
P8
P9
P 10-11
P 12-17
P

Special Features1  Toyota Industries’ Technologies and Products■
Based on 3Es
2  Initiatives to Enhance TMHG’s Value Chain Aimed■
at Global Expansion

P

18-21

P

22-24

Automobile
VehicleEngineCar Air-Conditioning Compressor
Car Electronics
Logistics
Textile Machinery

26-31
P 32-36
P 32-33
P 33
P 34-35
P 36
P 37-38
P 39-40

Relationship with Our Customers
Relationship with Our Associates
Relationship with Our Business Partners
Relationship with Our Shareholders andInvestors
Relationship with Our Local Communities

Structure to Implement Environmental
Management
Fifth Environmental Action Plan
Establishing a Low-Carbon Emission Society
Establishing a Recycling-Based Society
Reducing Environmental Risk and Establishinga Society in Harmony with Nature
Environmental Impact Flow and Environmental
Accounting

58-61

62
P 63
P

64-65
P 66-67
P 68
P 69
P

70-71
P 72

Financial Section
Consolidated Eleven-Year Summary
Consolidated Balance Sheets
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets

P

42

43-49
P 50
P 51-52
P 53
P 54
P

P

Corporate Information
Board of Directors, Corporate Auditors andManaging Officers
Major Consolidated Subsidiaries
Major Production Bases
Investor Information

2012

2011

2010

2009

2008

74-82
P 74-75
P 76-77
P 78
P 79
P 80-81
P 82
P 83-87
P 83
P¥1,543,352¥1,479,839¥1,377,769¥1,584,252¥2,000,536

Operating income (loss)

70,092

68,79822,002(6,621)

96,853

1.9

Ordinary income

80,86673,911

31,756

14,343

126,488

9.4

Net income (loss)

58,59447,205(26,273)(32,767)

80,46024.1

Research and development expenses

32,07027,78826,826

33,64636,750

15.4

Cash dividends per share (yen)

50.00

50.00

30.00

40.00

60.00

—

Total assets¥2,656,984¥2,481,452¥2,589,246¥2,327,432¥2,965,585

7.1%

Total net assets

1,197,841

1,075,939

1,104,929

977,670

1,453,996

11.3

43,51640,82538,90339,91639,528

6.6

Net sales

4.3%

At Year-End

Number of employees■ Net Sales■ Operating Income (Loss)■ Net Income (Loss)(¥ Billion)
2,500(¥ Billion)
100(¥ Billion)
100

80

80

2,000

60

60
1,500

84-85
P 86
P 87

40

40

P

1,000

500

0

20

20

0

0

(FY)

08

09

10

11

12

-20

-20
(FY)

08

09

10

11

12

-40

(FY)

08

09

10

11

12

11

12

55-56

This report contains projections and other forward-looking statements that involve risks and uncertainties. The use of the words “expect,” “anticipate,” “estimate,” “forecast,”“plan” and similar expressions is intended to identify such forward-looking statements. Projections and forward-looking statements are based on the current expectations
and estimates of the Toyota Industries Group regarding its plans, outlook, strategies and results for the future. All such projections and forward-looking statements are
based on management’s assumptions and beliefs derived from the information available at the time of producing this report and are not guarantees of future performance.
Toyota Industries undertakes no obligation to publicly update or revise any forward-looking statements in this report, whether as a result of new information, future events orotherwise. Therefore, it is advised that you should not rely solely upon these projections and forward-looking statements in making your investment decisions. You should
also be aware that certain risks and uncertainties could cause the actual results of Toyota Industries to differ materially from any projections or forward-looking statements
discussed in this report. These risks and uncertainties include, but are not limited to, the following: (1) reliance on a small number of customers, (2) product development
capabilities, (3) intellectual property rights, (4) quality issues, (5) price competition, (6) reliance on suppliers of raw materials and components, (7) environmental regulations,(8) success or failure of strategic alliances with other companies, (9) exchange rate fluctuations, (10) share price fluctuations, (11) effects of disasters, power blackouts andother incidents, (12) latent risks associated with international activities and (13) retirement benefit liabilities.

82012 vs 2011

For the Year■ Total Assets■ Total Net Assets(¥ Billion)
3,000(¥ Billion)
1,500■ Cash Dividends per Share
(¥)
60
50

Cautionary Statement with Respect to Forward-Looking Statements

Toyota Industries Report 2012

% changeP

n Financial Section / Corporate Information

Consolidated Statements of Cash Flows(Toyoda Precepts, Basic Philosophy and CSR Policy)

Corporate GovernanceVision for Environmental Activities

Millions of yen
PPn Corporate Social Responsibility
Corporate Philosophy

An Interview with the Chief Environmental
Administrator

Environmental Managementn Business Activities
Materials Handling Equipmentn Environmental Initiatives

2,000

40

1,000

30
1,000

500

20
10

0

(FY)

08

09

10

11

12

0

(FY)

08

09

10

11

12

0

(FY)

08

09

10

9

Toyota Industries Report 2012Outline of Businesses
Segments

Materials
Handling
Equipment

Outline of Businesses

The Materials Handling Equipment Segment develops, produces, sells and provides services for a broad range of
products, from industrial vehicles centered around a full lineup of lift trucks (0.5- to 43-ton capacities) to materials
handling systems. Lift trucks, a mainstay product of this segment, are delivered to customers around the world under
the TOYOTA, BT, RAYMOND and CESAB brands through Toyota Material Handling Group.

Main Products/Services• Lift trucks• Warehouse trucks• Aerial work platforms• Automated storage and retrieval
systems• Automatic guided vehicles

Net Sales

Operating Income (Loss)(¥ Billion)(¥ Billion)

600

40

Percentage of Net Sales

30
400

20

37.0%

10

200

0
0
(FY)

10

11

12

-10

(FY)

10

11

12

From vehicle assembly to parts production, the Automobile Segment engages in a wide variety of car-related businesses.
Leveraging synergies among its business divisions in development and production, the Automobile Segment accounts
for 52.0% of consolidated net sales and represents the largest business segment of Toyota Industries.

VehicleAutomobile

Logistics

TextileMachineryWith its strengths as an industry leader in quality, cost and delivery, the Vehicle Business producescompact to midsize automobiles.

• Vitz (Yaris outside Japan)• RAV4• Mark X ZiO• Diesel engines• Gasoline engines

Car AirConditioning
Compressor

Toyota Industries’ car air-conditioning compressors are highly acclaimed in terms of their reliability athigh operating speeds and quiet operation in addition to such excellent environmental-related
performance features as compactness, weight reduction and fuel efficiency. The Car Air-Conditioning
Compressor Business captures the top global share in unit sales*1.

• Fixed-displacement type
• Variable-displacement type
• Electric type

Car
Electronics

Utilizing power electronics circuitry technology and electric drive system development capabilities,
the Car Electronics Business develops and produces electronics products for hybrid vehicles andother electric-powered vehicles.

• PCU direct-cooling devices• DC-DC converters• DC-AC inverters*1: Survey by Toyota Industries Corporation

The Logistics Segment is composed of three business pillars: planning, design and operation of distribution centers to
help customers reduce their logistics costs; land transportation services that primarily focus on cargo deliveries via
trucks; and high value-added services such as cash collection and delivery and cash proceeds management services
and data storage and management services.

With a history dating back to the invention of an automatic loom by Toyota Industries founder Sakichi Toyoda, theTextile Machinery Business is a world leader in the textile industry backed by an integrated structure that encompasses
development, production, sales and service of weaving and spinning machines.

(¥ Billion)

1,000

40

800

The Engine Business produces both diesel and gasoline engines. We co-develop diesel engines with
Toyota Motor Corporation and possess a comprehensive structure ranging from planning anddevelopment to production.

Engine(¥ Billion)

30

600

20

400

• Planning, design and operation of
distribution centers• Land transportation services• Cash collection and delivery and cash
proceeds management services• Data storage, management, collection
and delivery services• Air-jet looms• Ring spinning frames• Roving frames

52.0%

10

200
0

(FY)

10

11

12

0

(FY)

(¥ Billion)(¥ Billion)

120

6

10

11

12

6.0 %

100
4

80
60

2

40
20
0
(FY)

10

11

12

0

(¥ Billion)(¥ Billion)

60

3

(FY)

10

11

12

2.5 %

2
40

1
0

20

-1
0

OthersThe Others Segment includes consolidated subsidiaries that provide services to Toyota Industries as well as TIBC
Corporation*2, a joint venture with IBIDEN CO., LTD.
*2: TIBC Corporation will be excluded from the scope of consolidation in July 2012. Dissolution of the company is planned in January 2013.

• Services businesses for Toyota
Industries Corporation provided byconsolidated subsidiaries• Semiconductor package substrates(FY)

Toyota Industries Report 2012

11

12

-2

(¥ Billion)(¥ Billion)

40

4

(FY)

10

11

12

2.5 %

3
2

20

1
0

10

10

(FY)

10

11

12

0

(FY)

10

11

12

11

Toyota Industries Report 2012

Top Management Interview
In fall 2011, Toyota Industries announced its Medium-Term
Management Plan that defines the direction we should
pursue for the period from fiscal 2013 to fiscal 2016.
Before getting into the details of the plan that just began
in April 2012, can you sum up the activities undertaken
under the previous plan (fiscal 2007 to fiscal 2011)?

great and we were unable to attain our numerical targets infiscal 2011. Nevertheless, we have significantly solidified our
corporate structure throughout the Group and added greater
profitability to our operations than before the global recession.

What initiatives were undertaken during fiscal 2012?

Tetsuro Toyoda
President

Setting Sail for 2020,
with the Compass that
Guides Us in an Age of Turmoil
The world is experiencing a succession of serious natural disasters and prevailing uncertainty about the
future of the global economy. In an age of turmoil, we have to fight for survival amid ever-intensifying
global competition. What is needed is a clear vision, well-defined strategy and the energy to take onchallenges. President Tetsuro Toyoda explains Toyota Industries’ vision and the course we will follow
toward the year 2020.

12

Toyota Industries Report 2012

Our previous medium-term management plan, which weannounced in the fall of 2005, commenced in fiscal 2007.
Under the plan, we carried out an array of proactive initiatives
in each business segment.
In the Materials Handling Equipment Business, we madeSweden-based lift truck manufacturer BT Industries AB into a
subsidiary in 2000. Instead of going ahead with immediate
management integration, we set a certain waiting period toabsorb the differences in corporate cultures and learn thestrengths of each company. Later in 2006, we felt we wereready and moved on to full-scale consolidation of management
structures in respective regions across the world. While
working to achieve greater agility in management, we
reorganized our sales network to enhance our sales andservice capabilities.
With regard to car-related businesses, in the Car AirConditioning Compressor Business we augmented our
structure to produce car air-conditioning compressors byincreasing production capacity at plants in North America andestablishing new production bases in China. In the Vehicle
Business, we flexibly responded to a shift in production volume
and a change in vehicle composition. In the Engine Business,
we sought to increase our role in the development andproduction of diesel engines while enhancing our lineup of
power source devices and systems primarily for hybrid
vehicles in the Car Electronics Business.
In the Logistics Business, we channeled our resources
into high value-added logistics services and successfully
accelerated business growth.
Finally, in the Textile Machinery Business, we made efforts
to expand sales of air-jet looms, which constitute a mainstay
product of this business, and build a production structure lessvulnerable to market fluctuations.
As a result of these efforts, in fiscal 2008 we achieved thenet sales target of over ¥2,000 billion ahead of the mediumterm plan and posted an increase in ordinary income to¥126.4 billion.
At the beginning of fiscal 2009, however, sensing earlysigns of a global economic downturn, we set out swiftly to
implement profit improvement activities and streamline thebusiness structure prior to the financial crisis that started in
the United States and triggered a full-blown global recession.
Thereafter, we positioned fiscal 2011 as a year to go on theoffensive while also strengthening our defenses, with theaim of identifying signs of change in the marketplace andtranslating these business opportunities into better businessperformance. We undertook various offensive initiatives,
including aggressive sales expansion activities for materials
handling equipment.
Unfortunately, the impact of the global recession was too

Because fiscal 2011 was the final year of the previous
medium-term management plan, we originally planned toannounce a new plan at the beginning of fiscal 2012. The
timing almost coincided with the Great East Japan Earthquakethat occurred on March 11, 2011. Therefore, we had topostpone the announcement as we dealt with partial
suspension of plant operations due mainly to the disruptionof parts supply from suppliers. Following all-out efforts tonormalize production, we were able to quickly restore our
production operations in our mainstay Materials Handling
Equipment Business to a level that enabled us to make up
for the delay in production by drawing on the agility andresilience of our unique supply chain.
In this manner, the Materials Handling Equipment Business
was a major driving force behind our recovery from theunprecedented disaster. This may be counted as yet anotherstrength of Toyota Industries, stemming from our involvement
in a wide range of businesses.
The earthquake struck when our Group-wide profit
improvement activities implemented after the so-called
Lehman Shock were just beginning to pay off. A subsequent
series of serious events, including the deepening of theEuropean debt crisis, the flooding in Thailand and thehistorically strong yen, caused the already difficult businessenvironment to continue. With many Japanese manufacturers
posting a decline in profits amid this environment, the Toyota
Industries Group worked together against these headwinds
and achieved increases in both sales and profits. These
recovery efforts undertaken during the period from fiscal 200913

Toyota Industries Report 2012

Top Management Interview

to 2012 made our management platform stronger than ever,and I believe we have forged a solid footing for future growth.

What is the aspired image laid out in the Vision 2020?
Since its founding by Sakichi Toyoda, Toyota Industries has
been operating under the philosophy of “contributing tosociety and the world through monozukuri (manufacturing).”
Many of our products may not be readily visible tocustomers, but they play a very important role connected
to people’s everyday lives. Our lift trucks, for example, areused to convey vegetables, fruits, fish, meat and otherfoodstuffs as well as convenient home electric appliancesalong their distribution routes. Towels and shirts, bothcommon in daily life, may use fabrics produced by our textile
machinery. Our car air-conditioning compressors are fitted innumerous vehicles across the world and operating to create
a comfortable atmosphere within an automobile even at theheight of summer. Our lift trucks, car air-conditioning
compressors and air-jet looms, for which we enjoy the top
share in the global market*, are just a few examples of our
products that are directly connected to people’s lives.
The Vision 2020 reflects our desire to contribute to acomfortable society and enriched lifestyles by offering
products and services truly needed in a timely manner.
Each and every one of the over 40,000 employees in the
Toyota Industries Group shares these common goals andworks toward realizing the vision.

Together with the Medium-Term Management Plan,
Toyota Industries also formulated and announced the
Vision 2020. What is the basic rationale behind the vision?
Currently, the Japanese manufacturing industry is laden withwhat is often referred to as the “six burdens,” including thestrong yen and high corporate taxes, and thus must compete
globally under extremely severe conditions. Given theincreasing speed of changes taking place in the businessenvironment, we must recognize that we are in an “age of
turmoil” in which major changes and crises are becoming
commonplace.
It is essential that we assume a change in the businessenvironment is always inevitable, and seek a higher degree of
independence and clear a path on our own. We will enhance
our product and technological prowess to proceed fromrecovery to growth over the next decade. The Vision2020 is the compass that guides us to this goal.

* Surveys by Toyota Industries Corporation for car air-conditioning compressors and lift trucks;
statistics from the International Textile Manufacturers Federation (ITMF), 2011 for air-jet looms

Vision 2020

Support industries and social foundations around the world by continuously
supplying products/services that anticipate customers’ needs in order tocontribute to a comfortable society and enriched lifestyles

To contribute to a comfortable society and enriched lifestyles

Solution

Key Components
New
Product

New
Product

New
Product

Toyota Industries Report 2012

New
Product

New
Product

3Es (Energy, Environmental protection and Ecological thinking)<Technological innovation in environment/energy areas>

Value Chain<Expansion of value chain>

World Market<Business development in world markets>

Contribute to realizing a society
with minimum environmental
impact through technologicalinnovation in environment/
energy areas

14

Mobility

Create new business value by
strengthening both hardware
and software development by
cultivating technology “seeds”

Develop businesses all over theworld and meticulously
respond to each region’s
customer needs

Maintain the world’s
highest-level SEQCD byimproving our business basedon team strength and TPS

Strengthen growth potential byleveraging synergies among
divisions, strategic M&As andalliances

How are our business segments categorized under the
Vision 2020?
Toyota Industries is like a general store, offering a diverse
range of products from textile machinery to materials handlingequipment, vehicles and automotive parts.
Based on the business models adopted by each segment,
we have divided these domains into three business units.
First, the “solution” business unit encompasses theareas of materials handling equipment, logistics and textile
machinery. It is a comprehensive business unit in which
Toyota Industries handles everything from development andproduction to sales and after-sales services. We aim toaccelerate growth of this unit as our specialty businessdomain.
The second business unit, “key components,” iscentered around the fields of car air-conditioning compressors
and car electronics. This unit capitalizes on our technologicalsuperiority to offer key components for a variety of products toa diverse range of customers worldwide, mainly automakers.
The third business unit is “mobility,” producing vehicles
and engines for Toyota Motor Corporation (TMC). Through thisunit, we will make the most of our production strengths tocontribute to significantly improving the competitive edge of
TOYOTA cars.
In this manner, we place no particular focus on one
business domain. Rather, we engage in a range of diverse
business fields to ensure stable management and generatesynergies among businesses. That, I believe, is where ourstrength lies.

What strategies have been formulated to achieve thetargets of the Medium-Term Management Plan and realize
the Vision 2020?
We have formulated three “muscular” strategies for
implementation across the aforementioned three business
units. Specifically, these entail the “3Es,” “Value Chain” and“World Market” strategies.
The first strategy focuses on 3Es (energy, environmental
protection and ecological thinking), which are the keywords inpromoting conservation of the global environment, to facilitate
the development of environment-friendly products.
We have accumulated various technologies through ourengagement in businesses related to an entire automobile
spanning from vehicle assembly to such automotive parts asengines and components. This, coupled with a pool oftechnologies and expertise accumulated in the field of electric
lift trucks, has enabled us to acquire a number of elemental
technologies that help us promote the 3Es. We are honing
these elemental technologies that contribute to energy
savings, electrification and lighter weight and applying thesetechnologies to new products in each field.
The second strategy concentrates on our value chain. In
the Materials Handling Equipment Business, for instance, it isimperative that we provide high-quality products. Anotherfactor that is of equal importance is meticulous customer
response, more specifically, the ability to provide fine-tuned
after-sales maintenance services and make proposals to help
customers improve their logistics operations. We seek to be ofservice in every aspect of customer relations.
Our third strategy targets the world market. Previously,
developed countries played a major role in economic
activities. In recent years, however, emerging countries havebeen driving global economic growth. In response, we aim toextend our geographical coverage to include both developedand emerging countries to deliver our products and services
to customers on a truly global scale.

What specific initiatives are planned?
Our specific initiatives focus on the following five points.
n Contribute to the realization of a society withminimum environmental impact
This is an important theme, which is also specificallyrecognized as one of our strategies. From the perspectiveof protecting the global environment, we will push ahead
with technological innovation in the fields of the environment
and energy to contribute to the realization of a society withless environmental impact. We will bring together theknowledge and wisdom of the entire Toyota Industries
Group to encourage the speedy development of environmentconscious products.

15

Toyota Industries Report 2012

Top Management Interview
within the Group including our subsidiaries. We will also
promote strategic M&As and alliances as necessary to further
bolster our strengths and compensate for our weaknesses toaccelerate growth in the future.

What are the numerical targets of the Vision 2020 and theMedium-Term Management Plan?
For fiscal 2021, we plan to achieve net sales of more than
¥3,000 billion (¥1,500 billion in the solution business unit,¥700 billion in the key components business unit and ¥800
billion in the mobility business unit). Our target for operating
income is more than ¥200 billion.
Also emphasizing our asset efficiency, the targets for
ROA*1 and ROE*1 ratios are set at 5% and 10%, respectively.
Under the Medium-Term Management Plan, we aim toachieve net sales of more than ¥2,000 billion and operating
income of ¥140 billion in fiscal 2016. Our plan for capital
expenditure for the next four years from fiscal 2013 to fiscal
2016 totals approximately ¥500 billion*2. We will proactively
invest in promising businesses that will serve to drive our
future growth.

Targets■ Net sales: More than ¥3,000 billion■ Operating income: More than ¥200 billion (7%)
■ ROA*1: 5%■ ROE*1: 10%
More than ¥200 billionn Strengthen our development activities in thesoftware domain
Our key development activities begin with cultivating our own
seeds of technology. Although our primary focus has been on
the development of hardware, we are now placing moreemphasis on the development of software to offer productsthat are truly satisfactory to our customers. For instance, ourair-jet looms, for which we hold the top market share, areused to produce fabrics for the highly esteemed Imabaribrand towels. In addition to hardware, we dedicate
considerable efforts to developing software programs
that precisely control these looms, and the produced fabrics
are highly recognized by our customers for their soft andexcellent texture.
n Respond to the distinctive needs in each region
In line with continued expansion of the global market, which
now includes emerging countries, customers’ needs for
products and services have become increasingly diverse.
We will work to enhance our products and services toaccurately satisfy regionally diverse needs, while taking steps
to establish an optimum production structure on a global
scale and reinforce our sales and service networks.

16

Toyota Industries Report 2012n Remain committed to the highest levels of safety,
environment, quality, cost and delivery standards
Under the belief that nurturing people forms the basis of
manufacturing operations, we have always emphasized thedevelopment of human resources and enhancement of teamstrength. Based on this team strength and the Toyota
Production System (TPS), which we have cultivated throughactual manufacturing operations, we strive to maintain thehighest levels of safety, environment, quality, cost and delivery(SEQCD) standards. Honing our proprietary production
technologies and processes, we intend to overwhelmingly
differentiate our products and services in terms of quality andcost. In addition, we will refine the strengths of our domestic
production bases that serve as mother plants, continue totransfer these skills and know-how to our overseas production
bases and ensure that the idea of nurturing people who
support monozukuri is firmly rooted in each country.
n Maximize synergies and promote strategic M&As/
alliances
Taking advantage of our wide range of businesses in thematerials handling equipment, automobile and other fields, wewill work to maximize synergies among business divisions andOperating income(¥ Billion) 96.8

Lastly, can you tell us about your resolution towardrealization of the Vision 2020?
As I mentioned earlier, we have prevailed over the global
economic downturn and other serious crises. We havereached the stage of recovery and are now setting sail forfurther growth. Nevertheless, I do not expect that we will
always enjoy smooth sailing. Author Nassim Nicholas Taleb*3
used a term called Black Swan*4 to refer to a virtuallyunpredictable event that has a massive impact when it occurs.
We have experienced a series of Black Swans for the past few
years. We are determined to become more independent whileworking together for the realization of the vision to prevail overany Black Swan that may appear in the future and achieving
growth through crises that arise.

140
68.7

70.0

85
More than

22.0¥3,000 billion
Solution¥1,500 billion(6.6)

Net sales(¥ Billion) 2,000

More than¥2,000 billion
1,584
1,377

1,479

1,543

1,650

Management Targets for Fiscal 2016

Materials Handling
Equipment, Logistics,
Textile Machinery, etc.

Key components¥700 billion
Compressor,
Electronics, etc.

Mobility¥800 billion(¥ Billion)

FY2012 results

FY2013 plan

FY 2016 targets

Net sales

1,543

1,650

More than 2,000

Operating income(operating income ratio)

70 (4.5%)

85 (5.2%)

140 (7.0%)

ROA*1

3.5%

—

5.0%

ROE*1

10.5%

—

10.0%

Capital expenditure

58

100

Approx. 500*2 intotal between
FY2013 and FY2016

Vehicle, Engine(FY) 2008 2009 2010 2011 2012 2013 2016 2021
(Results) (Results) (Results) (Results) (Results) (Plan)*1: Investment securities are calculated on the basis of their purchase prices.
*2: Includes M&A investments*3: Nassim Nicholas Taleb is a best-selling author and trader. Taleb serves as Distinguished Professor of Risk Engineering at Polytechnic Institute of New York University.
*4: The term was introduced by Nassim Nicholas Taleb in his book, The Black Swan (U.S. Random House 2007). Hundreds of years ago in the West, there was once an unshakable belief that allswans must be white based on observations of many millions of swans over several centuries. In 1697, however, this conventional belief was turned upside down with the discovery of blackswans in Australia. In this manner, a Black Swan refers to the overturning of traditional wisdom by just a single exceptional instance. It also means an extreme event unpredictable by probability
theory or previous knowledge and experiences, thereby having a massive impact on people when it occurs.

17

Toyota Industries Report 2012

Special Feature1

Toyota Industries’ Technologies and Products Based on 3Es
Toyota Industries’ environmental technologies play a dynamic role in society and daily life.
We remain close to you and provide support for a comfortable society and enriched lifestyles.
Based on the keywords of 3Es (energy, environmental protection and ecological thinking), Toyota Industries
promotes the development of technologies that contribute to energy savings, electrification and lighter weight.
We are applying these technologies to our products in diverse business domains, including automobiles andmaterials handling equipment, and in turn contribute to the realization of a society with less environmental impact.

PCU Direct-Cooling Device
Contributes to reducing the size of motor drive
units of HVs

DC-AC Inverter
Diesel-Powered InternalCombustion Hybrid Lift Truck

Variable-Displacement Type Compressor
Contributes to precise control of car air conditioner’s
cooling capability and greater fuel economy

Enables home electric appliances to be
used in a car

Offers excellent environmental performance
combined with economic efficiency

Electric Compressor
Fitted in HVs, PHVs and electricvehicles (EVs)

Onboard Charger
Converts home-use power sources to charge
plug-in hybrid vehicles (PHVs)

Automatic Guided Vehicles (AGVs) for
Freight Containers

Air-Jet Loom
Inserts weft yarn using air

Diesel Engine
Clean with less CO2 emissions

Adopts a diesel-electric system equipped witha proprietary energy-saving mode

DC-DC Converter

Electric Lift Truck

Converts the high voltage of hybrid vehicle (HV)
batteries to run such devices as lights
and wipers

Boasts power and longer operating period

Towing Tractor
Electric model that is environmentally friendly
and widely used in airports

18

Toyota Industries Report 2012

Smart Charging System
Efficiently charges multiple PHVs and EVs

Plastic Glazing
Contributes to reducing vehicle body weight

19

Toyota Industries Report 2012

Special Feature1

Toyota Industries’ Technologies and Products Based on 3Es

Leading the World in Energy-Saving, Electrification andLighter-Weight Technologies
With a focus on 3Es, Toyota Industries pursues technological innovation to offer the most advanced energy-saving,
electrification and lighter-weight technologies matched to growing needs in the global market for greater environmental
performance. This special feature presents a few examples of our 3E-based technologies in respective fields.

Variable-Displacement Type Compressors

Energy Savings

Toyota Industries’ car air-conditioning compressors boast
the world’s highest-level quality and performance in theareas of compactness, weight reduction, fuel economy,
reliability during high-speed operation and quietness.
Rising global environmental awareness has generated
greater demand for higher energy-saving performance.
In response, we developed the world’s first internallycontrolled variable-displacement type compressor in 1995
and externally controlled variable-displacement typecompressor in 1997, and have continued to pursue
greater performance in these products.
Our externally controlled variable-displacement typecompressors automatically and optimally control the air
conditioner’s cooling capability in accordance with thetemperatures in and outside a vehicle as well as the statusof engine operation. Receiving high acclaim for theiroutstanding performance, they are widely adopted bymajor automakers in and outside Japan.

Lighter Weight

PistonSwash plate
By changing the angle of the swash plate to adjust the piston stroke, the compressor
automatically controls the cooling capability.

Plastic Glazing

Recently, there has been growing demand for reducing
vehicle body weight, which directly leads to improved
fuel economy of an automobile. The weight of glass
accounts for more than 30 kg even in a compact car, andexpectations for plastic glazing have become progressively
greater as a lighter-weight substitute for glass.
Drawing on our experience in developing plastic
glazing, we successfully realized the previously challenging
task of developing a technology to create a larger-sizeplastic glazing. The resulting plastic glazing panoramic roof,
the largest of its kind in the world*1, is used in the Prius α(Prius v in North America and Prius + in Europe) released
by Toyota Motor Corporation in May 2011.
We have been receiving a number of inquiries fromautomakers in and outside Japan. We will further enhance
the appeal of our plastic glazing products to increase thenumber of vehicle models fitted with our products andexpand the scope of applications to include other vehicle
components.
*1: As of March 31, 2012. Survey by Toyota Industries Corporation*2: Survey by Toyota Industries Corporation

Electrification

Laminated glass roof

40% reduction*2

Plastic glazing roof
0

10

20

(kg)

 enerating Technological Synergies in Electrification between
G
Materials Handling Equipment and Automobile Fields
During the 1990s, we applied accumulated
electrification technologies to the automobile field.
We now develop and produce car electronics productsfor HVs and other electric-powered vehicles.

Since commencing production of electric lift trucks in
1967, Toyota Industries has cultivated power electronics
technologies and know-how through the development andin-house production of electronic components fitted in lift
trucks and textile machinery.
1970

Materials
Handling
Equipment,
TextileMachinery,etc.

Mass Comparison (Prius α Panoramic Roof)

1980

1990

●Commenced ●Started in-house production
production ofof controllers for electric lift trucks
electric lift
trucks●Started in-house productionof controllers for air-jet looms
Cultivated power electronics
technologies through developmentof electric lift trucks, etc.

2000

●Started in-houseproduction of power
semiconductors

Accumulated know-how throughdevelopment of products to be
fitted in automobiles

2010

Applied accumulated
technologies to HVs andother electric-powered
vehicles●Started in-house production●Launched salesof motors for electric lift trucksof hybrid lift trucks●Started in-house productionof control devices for textile
machinery●Developed combustion pressure sensor●Developed controller for blower motors●Developed infrared wireless door lock system●Developed charging
device for EVs●Developed DC-DC
converter for the Prius

Toyota Industries developed a new electric commercial van, “e-Porter,” which contributes to greater logistics
efficiency in a smart mobility society and less CO2 emissions. The e-Porter is a new concept vehicle that combines
energy-saving, electrification and lighter-weight technologies with the keywords of 3Es.

(Year)

Utilized HV technology
Car-Related

Latest Technological Trend: Electric Commercial Van “e-Porter”●Developed PCU components●Developed charging stand●Developed onboard
DC-AC inverter●Developed inverter for●Developed smart(100W)
electric compressors
charging system

The e-Porter brings together Toyota Industries’ comprehensive technological capabilities including a technology to createa special vehicle that combines its accumulated automotive body design technology with logistics know-how; powerelectronics technology cultivated in developing electric lift trucks and onboard devices for automobiles; and development
strengths in electric drive systems.
For this concept vehicle, we developed a new, dedicatedplatform with a suitable structure for EVs. Specifically, we
reduced the number of parts used to successfully achieveboth weight reduction and lower costs. The e-Porter is also
fitted with our newly developed powertrain unit*3 for EVs, an
onboard charger, DC-DC converter and electric compressor,
all of which contribute to reducing environmental impact.
Toyota Industries displayed the e-Porter concept modelat the 42nd Tokyo Motor Show held in December 2011 andpresented the direction we envision for next-generationcommercial vans.
*3: See page 36 for details.
On display at the 42nd Tokyo Motor Show 201120

Toyota Industries Report 201221

Toyota Industries Report 2012

Special Feature

2

Initiatives to Enhance TMHG’s Value Chain

Providing Higher Quality Services to Customers

Aimed at Global Expansion

TMHG engages in the Materials Handling Equipment Businessworldwide and strives to offer high-quality services in every
region where it delivers products.
These services are supported by teams of highly skilledservice technicians with a wealth of expertise and experience.

Under the Toyota Material Handling Group (TMHG) management structure,
Toyota Industries engages in the Materials Handling Equipment Business ona global scale, with a focus on lift trucks. We provide not only high-quality
products to customers but also the full spectrum of after-sales services toensure our products are continuously used in good condition. By building
long-lasting relationships of trust, we aim to bring value to customers.

The TMHG Training Center in Handa, Aichi Prefecture,devises and carries out service technician training programsin respective regions to raise the level of the service
technicians of distributors and dealers in and outside Japan.

Disseminating Service Technician Training Programs fromthe TMHG Training Center to the World
General Manager Hidehiko Matsushima talks about his commitment to developing excellent service technicians

Trusted Relationships with Customers Are
Our Lifeblood

Hidehiko Matsushima

General Manager,
TMHG Training Center

Support Services Essential in Lift Truck Operation

n
ctio
du

s

es

ce

i

Toyota Industries Report 2012

Pro

Customers
rv

22

ent
pm
lo

Se

A value chain comprises one of the “muscular” strategies devised under the Vision
2020. Our goal is to ensure customer satisfaction in every stage of our operations
from development and production to sales and after-sales services.
Here, we highlight initiatives undertaken to further upgrade our services in the
Materials Handling Equipment Business.
Industrial goods, such as materials handling equipment, must offer excellent
performance, and just as importantly, quality services. If a lift truck fails to operate, forexample, it would cause a significant loss in business activities of a customer. For thisreason, it is extremely important to precisely identify how our lift trucks are used and inwhat working environment, as well as to offer tailored maintenance and inspection
services for safe operation after delivery. These services ensure that our products areused for a long period of time in good condition and help customers achieve greater
logistics efficiency.

De
veServices an Important Element of Value Chain

Sal

Because lift trucks are industrial goods, it is extremely
important that we have in place a well-built support
structure to ensure our products can be used with asense of reassurance. It is commonplace throughout
the world that you would lose customers if yourservices are not satisfactory even if you provide
excellent products. Preventive maintenance isimportant in avoiding machine failures that will adversely
affect the business activities of customers. If a failure
does occur, it is necessary to respond immediately.
In the materials handling equipment industry, salesof low-priced lift trucks are growing in emerging
countries. In many cases, however, products do notcome with adequate after-sales services.
Toyota Industries, however, places a strong focus
on providing routine maintenance and repair services inboth developed and emerging countries to enable us to
support customers’ efficient business activities.

In the industrial goods business, we usually maintainlong-term relationships with our customers, which
continue after the delivery of products. Therefore, it isimperative that we build relationships of trust withcustomers and become a reliable partner.
Building relationships of trust involves providing
safety and reassurance and continuing to offer
solutions suited to their needs and concerns from acustomer perspective. By providing industrial goods,
we have a major responsibility to customers. Once we
win their trust, however, we can build a long-lasting
relationship with them.
I believe that the most important, basic aspect ofafter-sales services for industrial goods is to carry out
precise inspection and maintenance of equipment andexplain our activities to customers until they feelassured. Such basic activities must be backed by a
Customer First spirit and proper service skills andknowledge. The TMHG Training Center places
particular emphasis on these points when providing
training to service technicians.
We will continue to communicate closely with
our distributors and dealers and provide valuable
information that will help them improve their service
skills.

23

Toyota Industries Report 2012

Special Feature

Key Service Personnel to Share Training with
Local Staff

2

Initiatives to Enhance TMHG’s Value Chain Aimed at Global Expansion

After returning home, they share the knowledge andskills they have gained in Japan with local staff, thereby
improving the level of service of distributors and dealersin every country.

The TMHG Training Center accepts service instructorsof distributors and dealers across the world. In a small
group training class, participants learn about TMHG’s
ideas on quality and services as well as obtain a highlevel of knowledge and skills through lectures andpractical training sessions using actual equipment.

Offering Services Attuned to the Distinctive Needs of Each Country
In March 2012, more than 50 service instructors from Asia, Latin America, Oceania, the Middle East and Africa came to Japan toreceive maintenance training on our newly introduced global model at the TMHG Training Center.
1
VOICE ■

2
VOICE ■

Amit Rawat [India]

Mun Wei Kin [Malaysia]

Service Manager,
Toyota Material Handling India Pvt. Ltd.
(TMH India*1)

Service Executive, Technical Support,
UMW Industries Sdn. Bhd.*2

I am in charge of providing training
to about 30 service technicians at
TMH India.
During training held in Japan,
I learned about the technical aspects of materials handlingequipment, the concepts of genchi genbutsu (go and see foryourself) and mutual trust, and how to provide effective
training. Capitalizing on this experience, I will pass along thetechniques and philosophy I have learned to technicians.
Customers in India are very sensitive to the quality ofservice. If they are not satisfied, they will switch to anothermanufacturer. Providing quality service is very important.
I would like to upgrade the level of service of our staff in
India and work to deliver greater satisfaction to customers
through our services.

I’ve been working for UMW
Industries for 23 years. I provide
training and technical assistance toabout 20 service technicians and 70
mechanical engineers. Since many of our service technicians
and mechanical engineers have many years of experienceand we offer detailed training programs under a well-defined
training structure, we have successfully cultivated strong
relationships of trust with customers.
Currently, we are emphasizing training on electric lift
trucks, for which demand has been growing in Malaysia.
The same as the TMHG Training Center, we will make efficientuse of both actual equipment and simulators to provide
easy-to-understand technical education.

*1: Materials handling equipment sales subsidiary in India*2: Materials handling equipment distributor for Malaysia, Vietnam and Singapore

Toyota Industries Report

2 0 12Business Activities
Materials Handling Equipment
Automobile

26−31
P 32−36
P

Vehicle / Engine / Car Air-Conditioning Compressor / Car Electronics

Logistics
Textile Machinery37−38
P 39−40
P

Striving to Offer Assistance in Various Logistics-Related Domains
TMHG dedicates considerable efforts toward enhancing thequality of its services in every aspect of materials handling
operations, including maintenance, repair, rental and leasing
services as well as consulting to improve logistics.

24

Toyota Industries Report 2012

We will assist customers in raising their logistics efficiency
by appropriately responding to a wide range of logisticsrelated needs.

25

Toyota Industries Report 2012

Materials Handling Equipment

As for the Materials Handling Engineering Business,
which is represented by automated storage and retrieval
systems and automatic guided vehicles (AGVs), we
stepped up our efforts to promote the development ofsuch overseas markets as China.
Difficult conditions continued in the market for aerial
work platforms due to such impacts as the earthquake
and the economic downturn in Europe. To counter thesituation, we concentrated on expanding sales of Aichi
Corporation, which possesses the top brand of aerial work
platforms in Japan, while pushing ahead with cost
reduction efforts. As a result, net sales exceeded theprevious fiscal year’s level.

As the globally recognized top brand of lift trucks, Toyota Industries provides
cutting-edge products and services to customers across the world,with the level of quality only an industry leader can achieve.

■ Japanese Market
No. 1 Market Share* in Lift Truck SalesRAYMOND and CESAB brands. Mutually utilizing the sales
and development strengths of each brand, TMHG is
promoting business expansion on a global scale.

Business Overview in Fiscal 2012

Market Conditions and Business Activities
in 2011

Materials Handling Equipment Sales(Thousand units)

250
200
150
100
50

* Surveys by Japan Industrial Vehicles Association and Toyota Industries Corporation,
2011

Introducing Products Excellent in Environmental
Performance and Work Efficiency
TMHJ added four optional attachments for the 3.5- to
4.5-ton GENEO-HYBRID diesel-powered internalcombustion hybrid lift trucks to make the GENEO-HYBRID
more versatile in responding to diverse customer needs invarious industries, including paper and pulp as well as
lumber industries.
In addition, charging stands for plug-in hybrid vehicles(PHVs) and electric vehicles (EVs) are now available

08

09

10

11

12

Toyota Material Handling Group Organization Chart

TMHG

Toyota Material Handling Group (TMHG)

26

As a market leader with extensive knowledge oflogistics needs across the world, Toyota
Industries provides a full range of lift trucks andother materials handling equipment to customers
worldwide.
Under the TMHG management structure, we
engage in business under the TOYOTA, BT,

Toyota Industries Report 2012

RegionOrganization

Brand

Japan

North America

EuropeALOMA*

China

TMHJ

TMHNA

TMHE

TMHI

TMHCN

Toyota Material
Handling Japan

Toyota Material HandlingNorth America

Toyota Material
Handling Europe

Toyota Material
Handling International

Toyota Material
Handling China

TOYOTATOYOTARAYMONDTOYOTABT
CESAB

TOYOTABTRAYMONDTOYOTABTRAYMOND* ALOMA stands for Asia, Latin America, Oceania, Middle East and Africa.

■ Kaizen Example for Customer in the Food Industry
Toyota Industries’ automated storage and retrieval
system significantly reduced the burden of moving
barrels, which weigh 60 to 90 kg each, into and outof the warehouse. Moreover,three-dimensional use of thewarehouse space created
1.5 times greater storage
volume and enabled smooth
movements of lift trucks tocarry barrels within thewarehouse.
Newspaper advertisement
showing a kaizen example

Topic
In February 2012, Toyota Industries concluded abusiness and capital tie-up agreement with SEIBU
ELECTRIC & MACHINERY CO., LTD. based in Koga,
Fukuoka Prefecture.
With a view to strengthening our lineup ofmaterials handling systems, such as automatedstorage and retrieval systems and transportationequipment, we consign a portion of our customized
designing and production operations to SEIBU.
Accordingly, we will shift our focus, which has been
traditionally placed on materials handling equipment
hardware, to strengthening software development.

0(FY)

TMHJ has been offering solutions for greater energy
savings and logistics efficiency to customers under thetheme “Warehouses Are Full of Improvement Seeds.” In
July 2011, TMHJ launched the Eco Lineup Campaign toexpand sales of environmentally friendly electric and hybrid
lift trucks.
Starting in November 2011, TMHJ ran a series ofnewspaper advertisements showing examples of its pastkaizen (continuous improvement) solutions. At the sametime, TMHJ provided free logistics diagnoses acrossJapan in an effort to capture latent customer needs.
TMHJ is providing optimal logistics solutions
combining its extensive product lineup that ranges from lift
trucks to a variety of materials handling systems with awealth of logistics improvement know-how and superior
service structure.

Materials Handling Equipment

Materials Handling Equipment

In 2011, the lift truck market in respective regions enjoyedfavorable conditions driven by the market recovery indeveloped countries and market growth in emerging
countries. In Japan, we were forced to partially suspend
production operations after the Great East Japan
Earthquake in March 2011. Nevertheless, we worked toquickly restore and make up for the delay in production byflexibly utilizing our unique supply chain. We also focusedon expanding sales in the manufacturing industry where
there was an upturn in capital investment. In Europe andNorth America, we reinforced our ability to accept large
orders covering geographically extensive areas andproactively participated in various exhibitions to appeal theexcellence of our products and services. With the aim ofstrengthening both our production and sales activities inemerging countries, we engaged in sales expansion
activities through our new sales subsidiary established inIndia and decided to construct a lift truck production plantin Brazil.

Appealing Energy Savings and Logistics
Efficiency to Customers

Business Activities

Business Activities

In the materials handling equipment industry, emerging
countries primarily in Asia, as well as Europe, North
America and Japan, maintained an upward trend in theirrespective markets. Amid this environment, Toyota
Industries reinforced production and sales structuresand rolled out products matched to respective market
conditions. As a result, sales of our mainstay lift trucks
rose both in and outside Japan to a total of 184,000 units,
an increase of 31,000 units, or 20%, over the previous
fiscal year. Net sales rose ¥80.1 billion, or 16%, to¥570.7 billion.

In 2011, the Japanese lift truck market was negatively
affected by the earthquake, but subsequent recovery
resulted in approximately 10% growth over the previous
year. Toyota Material Handling Japan (TMHJ) quickly
restored its suspended operations to make up for thedelay in production and worked hard to expand sales tothe manufacturing industry, including the transportationequipment sector, in keeping pace with a recovery in themarket. Reflecting these efforts, unit sales in fiscal 2012
increased 21% year-on-year to 32,000 units. TMHJ
secured a 42.7% share of the Japanese market in2011 and maintained its top position* for the 46th
consecutive year.

through TMHJ dealers located throughout Japan. Drawing
on our servicing capabilities, which we have accumulated
in the field of electric lift trucks, we are working tosatisfy growing needs for maintenance services in theelectric-powered vehicle field.

Attachments available as an
option for the GENEO-HYBRID

27
Toyota Industries Report 2012

■ North American Market■ European Market

Maintaining Top Market Share*1 for 10thConsecutive Year

Aiming to Provide Customer-Oriented Services
and Industry’s Leading Products

The North American lift truck market increased by morethan 30% in calendar year 2011 compared with 2010.
Toyota Material Handling North America (TMHNA)
remained the market share leader*1 in fiscal 2012 withcombined unit sales of TOYOTA and RAYMOND brands
of approximately 59,000 units, an increase of 37%.
Toyota, as a full line supplier of lift trucks, remained themarket share leader*1 in North America for the 10thconsecutive year, and Raymond, as a leading provider ofelectric lift trucks and solutions used in warehouse anddistribution environments, focused on helping warehouses
and other facilities achieve more efficient and sustainable
operations through Eco-Performance.

Growth of the North American lift truck market is expected
to slow in 2012 compared with the previous year. TMHNA
will seek to further enhance synergies to ensure the fullpower of both the TOYOTA and RAYMOND brands isutilized. TMHNA will continue to offer customer-centric
services and industry-leading products to enhance
efficiency and productivity while lowering costs.

Topic*1: Survey by Crist Information & Research, LLC, 2011

Proactively Launching New Products andServices
TMHNA introduced a compact battery compartment
option available on Toyota 8-Series 4-wheel AC electric lift
trucks. The new option supports customer requirements
to operate in cramped warehouses and environments.
Raymond 7000 Series Reach-Fork truck

Toyota 8-Series 4-wheel AC electric lift truck

The new Raymond 7000 Series Reach-Fork trucks
were introduced featuring industry-leading lift and lower
speeds, and regenerative lowering, which produces
energy when the forks are lowered to increase battery shift
life. The newly developed Raymond Courier™ automatedlift truck allows for flexible automation without systemconstraints through the integration of vision guided

TMHNA is committed to developing and providing
products and services that satisfy the diverse needs ofcustomers and assist them in setting up a highly efficientlogistics environment.
In recognition of such initiatives, Plant Engineeringmagazine awarded TOYOTA’s new 8-Series 4-wheel AC
electric lift trucks the 2011 Product of the Year Gold
Award in the Material Handling Category. Plant
Engineering also awarded a 2011 Product of theYear award to RAYMOND’s new Models 9300/9400
Sideloader lift trucks.
Also, in an independent study of lift truck users,
TOYOTA took top billing as the lift truck customers
consider safest and most reliable*2. In the supply of parts
as well, lift truck users voted Toyota genuine parts highest
in quality and reliability for the third year in a row.

Sales Expansion Efforts Including New Product
Series and Services
TMHE launched the new BT Optio L, an ergonomicallydesigned order picker introducing the new “Smooth
Operator” concept. The product features a function toautomatically control the operating speed when goingaround a curve and a suspension mechanism to ensure asmooth ride by absorbing vibrations from under thedriver’s seat. The BT Optio L-series won the Gold Award,
the highest among the iF Product Design Awards*, for its
excellent performance, functionality and quality of design.
TMHE has also been focusing on logistics solutions
services, and as a result of its proactive sales expansion
activities, obtained a number of new customers in fiscal
2012. TMHE contributes to reducing operational costs
and enhancing safety by offering a variety of solutions,
including automated logistics.
* The iF Product Design Award is one of the world’s most prestigious awards presented
every year since 1954 by the Germany-based organization International Forum Design.

Materials Handling Equipment

Materials Handling Equipment

Highly Acclaimed TOYOTA and RAYMOND Brands

In 2011, the lift truck market in Europe showed signs ofrecovery on an annual basis, although growth slowed in
the second half. Overall, demand in the market increasedby more than 20% year-on-year.
Amid this environment, Toyota Material Handling
Europe (TMHE) participated in various exhibitions tocapture latent demand by offering logistics solutions andto promote a wide array of products and services. As aresult of these proactive sales expansion activities, TMHE
recorded unit sales of 60,000 units, an increase of 21%
over the previous fiscal year.

Business Activities

Business Activities

technology that does not require lasers, magnetic tape,wires or additional infrastructure. As a result, theautomated lift truck can be flexibly integrated into a variety
of facilities.

In 2011, Toyota Industrial Equipment Mfg., Inc.
(TIEM), a subsidiary producing TOYOTA-brand lift
trucks in North America, recorded cumulative total
lift truck production of 400,000 units. TIEM wasselected as one of the 10 Best Plants in North
America in 2011 byIndustryWeek magazine andearned the Company of theYear Award for 2011 fromthe Columbus Area
Chamber of Commerce. In
addition, TIEM received the
Occupational Excellence
Achievement Award from the
National Safety Council inrecognition of recording a lost work time rate of lessthan 50% of companies in the same businessclassification, as well as the 2011 Governor’s Award
for Environmental Excellence from the governor of
the U.S. state of Indiana.
The RAYMOND brand was exhibited at MODEX
2012, a trade show held in February 2012 in
Atlanta, Georgia. During the event, the RAYMOND
brand appealed to visitors its ability to offer solutions
that enable energy savings and other benefits alongwith efficient logistics.

Increasing Unit Sales by Grasping Market Trends*2: Survey by Peerless Media Research Group, 2011
BT Optio L-series order picker

MODEX 2012 trade show

28
Toyota Industries Report 201229
Toyota Industries Report 2012

Appealing Excellent Quality of Products andServices at Exhibitions
In May 2011, TMHE participated in CeMAT, the world’s
leading intralogistics trade fair, in Hannover, Germany.
Visitors were able to see the full range of products andservices offered by TMHE under the corporate theme“Responsible Together” in three areas: Responsible
Innovation, Safety Dojo and Empowering Your Business.
Attendees could experience a live demonstration of
the Toyota GENEO HYBRID lift truck and automatedorder picking along with using interactive tools to
discover innovative logistics solutions to help reduce
customers’ costs.

At the Inter Airport Europe exhibition held in October
2011 in Munich, Germany, TMHE presented its flight
carriers, a range of towing tractors designed for airport
materials handling, which have been introduced at airports
all over the world.

Toyota towing tractor

Reinforcing Production and Sales Operations in
Growing Markets
To secure a competitive position in the expanding Indian
market, Toyota Material Handling India Pvt. Ltd. (TMH
India) started operations in May 2011. Concerted efforts
are being made to expand sales and service operations tofurther improve capabilities to serve customers nationwide
based on a full range of products.
In Brazil, which is the largest industrial vehicle market
in Latin America, besides stepping up sales activities, thedecision was made to construct a new production plant inSão Paulo. In October 2013, the new plant will commence
production of internal-combustion lift trucks, for which
there is strong market demand. Production will gradually
be extended to cover other products.
In Vietnam, Toyota Industrial Equipment Vietnam Co.,
LTD. (TIEV) commenced production of motors for electric
lift trucks in April 2012. By supplying these motors to lift
truck assembly plants worldwide, TIEV is strengthening its
price competitiveness.

Offering Products Attuned to Needs in Each Region
and Building Optimum Supply Structure

Helping Customers Reduce Operational Costs
and Contributing to Better Materials Handling
Environment■ ALOMA* and Chinese Markets
Further Upgrading Sales and Service Capabilities
Toyota Material Handling International (TMHI) covers the
ALOMA* markets of Asia, Latin America, Oceania, theMiddle East and Africa, while Toyota Material Handling
China (TMHCN) covers the Chinese market.
In 2011, these markets have experienced strong
demand for lift trucks supported by continued economic
expansion. Although both TMHI and TMHCN engaged in
key efforts to further strengthen their competitive positionin sales and services, sluggish sales in China resulted inunit sales in these markets decreasing 3% to around
33,000 units in fiscal 2012.

Topic
Toyota Industrial Equipment Vietnam Co., LTD.

In China, Toyota Industry (Kunshan) Co., Ltd. (TIK)
launched production of the new 8FBN electric lift truck,a global model. The 8FBN was rolled out in the Chinese
market in June 2011 and subsequently in the ALOMA
markets in February 2012. A plant was also set up to
produce BT-brand low lift trucks in Foshan, Guandong
Province, and another one to manufacture RAYMONDbrand compact towing tractors in Dalian, Liaoning
Province. On the sales front, in addition to upgrading thecapabilities of existing distributors, a joint sales company
was established and began operations in September
2011. These activities were aimed at further reinforcing
sales and service networks in major cities.

The 2nd TMHI Distributor Conference held in
November 2011 brought together around 70
representatives from 42 distributors of the TOYOTA,
BT and RAYMOND brands in 35 countries in the
ALOMA markets. TMHI’s medium-term targets andaction plans for achieving them were presented. In
addition, participants also increased their productknowledge about lift trucks, warehouse trucks andtowing tractors for each brand, together with visitinga service facility of a TMHJ dealer to learn aboutsales management and site operations.

Materials Handling Equipment

Materials Handling Equipment

At CeMAT, the new range of CESAB-brandcounterbalanced lift trucks featuring improved mast
operability and superior safety in addition to warehousetrucks were exhibited.

An upward trend in demand for lift trucks is expected in
the ALOMA and Chinese markets in 2012. TMHI and
TMHCN will continue to enhance their capabilities in terms
of providing a full range of excellent lift trucks and services
matched to needs in respective regions and establishingan optimum supply structure to meet customer
expectations.

Business Activities

Business Activities
TMHE booth at CeMAT

TMHE will continue to support customers across Europe
to reduce their operational costs through advanced
automated systems and an extensive product lineup, as
well as excellence in service, with innovative solutions likethe Toyota I_Site fleet management system. TMHE willcontinue with its activities to work responsibly together
with its customers, suppliers and partners for a better
materials handling environment. Its ongoing partnershipwith EU-OSHA (European Agency for Safety and Health atWork) is one example of such initiatives. Under the theme“Working Together for Risk Prevention,” both management
and the workforce will increase collaboration to ensure
safety in the workplace.

Toyota 8FBN electric lift truck* ALOMA stands for Asia, Latin America, Oceania, Middle East and Africa.

TMHI Distributor Conference
CESAB booth at CeMAT

30
Toyota Industries Report 201231
Toyota Industries Report 2012

Automobile

Industries collaborates with TMC to make suggestions on
new vehicle specifications and car-related goods underthe banner “Make Our Vitz More Attractive by Ourselves.”
At the same time, we also undertake activities to expand
our customer base by enhancing the appeal of the Vitz
through our support to motorsports events.

In the fields of vehicle assembly, engines, car air-conditioning compressors and car electronics,
Toyota Industries is contributing to the creation of eco-friendly and comfortable automobiles byleveraging its environmental technologies for energy savings, electrification and lighter weight.

The RAV4 and Lexus IS for Europe are equipped with our
AD diesel engine that cleared Euro 5 emission standards
in 2008.
In 2011, our KD and VD diesel engines also passed
Euro 5 emission standards, and we worked to attaingreater fuel efficiency for our AD diesel engines.

Highest-Level QCD to Contribute to Productionof Attractive Toyota Cars
In the face of the shrinking automobile market in Japan,
we are further strengthening our superior level of quality,
cost and delivery (QCD). We also are working to leverage
our ability to quickly start up production and a flexible
structure in terms of production volume and vehicle
models to contribute to production in Japan of
Toyota vehicles.
KD diesel engine

EngineVehicleBusiness Overview in Fiscal 2012

Business Overview in Fiscal 2012
An increase in production primarily of KD diesel engines
was offset by a drop in production of AR gasoline engines,
and production volume in fiscal 2012 remained on par withthe previous fiscal year at 610,000 units. Net sales were at
the same level as the previous fiscal year at ¥197.1 billion.
Engine Production*1: Short for gas heat pump; air conditioner driven by a gas engine*2: Short for combined heat and power; co-generation system(Thousand units)

700
600

Aiming to Bring Satisfaction to More Customers

500
400
300
Prius α fitted withpanoramic roof

Vehicle Production

200
100

(Thousand units)

400

0
(FY)

08

09

10

11

12

300

Toyota Industries’ Diesel Engines Highly
Acclaimed by Customers Worldwide

200

100

Enhancing Appeal of the Vitz
0
(FY)

08

09

10

11

12

Plastic Glazing Panoramic Roof for the Prius(Prius v in North America and Prius + in Europe)
Toyota Industries commenced production of a panoramicroof made of plastic glazing for the Prius α, a hybrid

32
Toyota Industries Report 2012

Toyota Industries’ engines are highly renowned for their
excellent environmental performance in non-automotive
fields as well. These engines are used for a wide variety of
applications, including GENEO-HYBRID diesel-poweredinternal-combustion hybrid lift trucks, and adopted by
GHP*1 manufacturers in Japan and CHP*2 manufacturers
worldwide.

Both Toyota Industries and TMC had undertaken domestic
production of the Vitz until March 2010; however, we
became the sole producer in Japan. We also designed a
portion of its upper body and interior, as well as the RS, asporty model in the Vitz family, thereby undertaking a fullrange of processes from development to production. Witha view to turning the Vitz into a long-selling series, Toyota

Toyota Industries’ diesel engines, fitted in a variety of
Toyota vehicles sold around the world, have gained highmarket recognition for their cleaner emissions, greater fuelefficiency and higher performance. KD diesel engines, forwhich production started in 2005, are installed in TMC’s
Innovative International Multi-Purpose Vehicle (IMV) series,
and their sales have been achieving steady growth mainlyin Asia and Latin America. The V-type 8-cylinder VD diesel
engine, which was developed primarily by Toyota
Industries, is installed in the Land Cruiser, and soldparticularly well in Australia, Russia and the Middle East.

Toyota Industries has been making efforts to achieve
shorter development cycles with improved efficiency. At
the same time, we have been carrying out development of
next-generation automobile engines that can clear Euro 6
and other stringent emission standards, as well as engines
for materials handling equipment and general purposes,featuring greater fuel economy and lower costs.
We have been participating in various overseas
exhibitions, with an eye to acquiring new customers forour general-purpose engines. Looking ahead, we will
establish optimum sales and service structures matchedto each market with a focus on sales expansion activities
mainly in emerging countries.

Automobile [Vehicle • Engine]

Automobile [Vehicle]* Survey by Toyota Industries Corporation

Developing Competitive Engines in Fields Other
than Automobiles

Business Activities

Business Activities

In the automobile industry, despite sluggish growth of theJapanese market, the global market grew in line with
continued market expansion in Asia and a market upturnin North America. Although adversely affected by theearthquake in Japan and the flooding in Thailand, Toyota
Industries worked hard to restore production activities.
In fiscal 2012, unit production dropped by 17,000
vehicles, or 6%, from the previous fiscal year to 278,000
vehicles, due to lower sales of the RAV4 and Vitz (Yaris
outside Japan). Net sales were down ¥21.1 billion, or 6%,
to ¥354.4 billion.

vehicle marketed by Toyota Motor Corporation (TMC) in
May 2011. In light of the growing demand for reduced
vehicle weight, we have developed plastic glazing as alighter-weight substitute for glass.
This product retains the beautiful surface quality typicalof a glass roof yet is approximately 40% lighter* than its
glass counterpart, improving vehicle fuel efficiency andthus contributing to the reduction of CO2 emissions. We
are currently receiving numerous inquiries from many
automakers in and outside Japan. Toyota Industries willcontinue to develop attractive new products that leverage
the distinctive characteristics of plastic glazing.

33
Toyota Industries Report 2012

Car Air-Conditioning Compressor

Business Overview in Fiscal 2012
Unit sales of car air-conditioning compressors increased
both in and outside Japan, pushing up overall unit sales by
2.72 million units, or 14%, to 21.55 million units. Net salesrose ¥14.7 billion, or 8%, over the previous fiscal year to¥206.5 billion.
Compressor Sales(Million units)

25
20
15
10
5

For developed countries, we are promoting thedevelopment of variable-displacement type compressors
with greater fuel efficiency and electric compressors thatare compact, lighter and quiet.
Since initially being installed in the second-generation
Prius, our electric compressors have been fitted in all
Toyota hybrid vehicles (HVs), from the third-generation
Prius to the Aqua (Prius c in North America). Backed byour proven sales track record to TMC coupled with strong
product appeal, we have been receiving an increasing
number of inquiries from other automakers around theworld for application in their HVs, plug-in hybrid vehicles(PHVs) and electric vehicles (EVs).
In emerging countries, we are working to improve
the reliability and price competitiveness of our fixeddisplacement type compressors. We are also striving
to optimally match functionality and costs for variabledisplacement type compressors, for which demand is
growing. Combining the appeal of our products with
our ability to provide excellent technical support requiredby automakers, we intend to increase our share in
respective emerging countries where our sales presence isrelatively small.

In terms of procurement, we will take steps to reduce
costs by establishing an optimum procurement structure
on a global basis and increasing procurement from local
business partners.

Further Augmenting Global Production and
Procurement Structures
We have been increasing production of our variabledisplacement type compressors in North America andEurope in response to the growing need for higher fuelefficiency in developed countries. In Japan, we havebeen expanding our capacity to manufacture electriccompressors.
In emerging
countries, P.T. TD
Automotive Compressor
Indonesia (TACI), a new
car air-conditioning
compressor production
base, commenced
production operations
in June 2011. We willfurther augment TACI’s
production capacity to 10SA13 fixed-displacement type compressor
produced by TACI and installed in TMC’s IMV
respond to the growing series vehicles and the Etios
ASEAN automobile
markets.

Establishment of Production Base for VariableDisplacement Type Car Air-Conditioning
Compressor Parts in the United States
In February 2012, we established Toyota Industries
Compressor Parts America, Co. (TICA), a production basefor car air-conditioning compressor parts for the North
American market, in the U.S. state of Georgia.
Through the establishment of the new company, we
aim to meet the growing demand in North America forfuel-efficient variable-displacement type compressors,
increase the ratio of compressor parts procured locallyand improve our price competitiveness.
TICA plans to start the production of parts in
September 2013 for two compressor production bases in
the United States. By fiscal 2017, TICA intends to produce
parts for 6 million compressors annually.

0
(FY)

08

09

10

11

12

Enhancing Appeal of Our Extensive Lineup
Business Activities

Business Activities

Personnel engaged in development work

Testing

Worldwide Bases of Car Air-Conditioning Compressors

TDDK

Toyota Industries’ Compressor Lineup

DNDE

ModelsGermany

Germany
YSD

DICH

MACI

China

China

U.S.A.

DIAM

U.S.A.

DSIT

For large
vehiclesFixed displacement,swash plate type

Fixed displacement,
vane type

Variable displacement,swash plate type

Automobile [Car Air-Conditioning Compressor]

Automobile [Car Air-Conditioning Compressor]

In order to meet a diverse range of customer needs,
Toyota Industries offers a full lineup of car air-conditioning
compressors, including a vane type for compact vehicles,
fixed-displacement type for medium to large vehicles,
variable-displacement type and electric type.
Our extensive lineup can adequately respond to theregionally diverse needs of customers both in developedand emerging countries. We intend to further enhance theappeal of our extensive lineup.

Italy
TICO

Electric type

DNTS

Japan

Italy
SUBROS

TACK

India

China

Fixed displacement,
scroll type

TACG

U.S.A.
TICA

U.S.A.
DNMY

TACI

Indonesia

Malaysia
DNBR

For compact
vehiclesBrazil: Consolidated production bases

Target emerging countries

Target developed countries: Licensed manufacturers: Technical service stations

Toyota Industries’ car air-conditioning compressors are widely adopted by automakers around the world, garnering the No. 1* position in global sales.
* Survey by Toyota Industries Corporation

34
Toyota Industries Report 201235
Toyota Industries Report 2012

Car Electronics

Business Overview in Fiscal 2012
In fiscal 2012, Toyota Industries posted an increase in net
sales of car electronics products, fueled by a rise inproduction of the Toyota Prius and other HVs, and anincrease in the number of models fitted with our products,
such as the Aqua and the Prius Plug-in Hybrid.

In January 2010, we initiated an electric powertrain
promotion project as a Company-wide organization topromote electrification of our products. We have since
worked to bolster the development of core components
and systems for drive systems.
As the first product developed under this project, wereleased a powertrain unit for EVs in November 2011. We
integrated designs of functional components, such as aninverter, motor and reduction gears, into one package andsuccessfully reduced the size and weight.

Logistics
Toyota Industries offers customers highly advanced, efficient logistics services to
respond to their diverse needs, including consigned operation of distribution centers;
land transportation services; cash collection and delivery and cash proceeds
management services; and data storage, management, collection and delivery services.

Gaining Experience and Greater Role in ElectricPowered Vehicle Field
Toyota Industries develops and produces electronic
components and devices for electric-powered vehicles,
including HVs, PHVs and EVs.
[ Auxiliary Power Source Devices ]A DC-DC converter converts the high voltage of HV
batteries to a lower voltage level suitable for operating
lights, wipers, horns and other auxiliary devices. Sincebeing adopted in the first-generation Prius, we havecontinuously developed more compact and lighter weightmodels to be fitted in the third-generation Prius and Aqua.
As of the end of February 2012, cumulative production hit
4 million units.

Powertrain unit for EVs

Business Overview in Fiscal 2012

Planning, Design and Operation of Distribution
Centers
DC-DC converter fitted in the Prius

A DC-AC inverter is used to run home electric
appliances in a vehicle. Following the earthquake in Japan,
it has been drawing much attention as an emergency
power source device.
With regard to onboard chargers, we have developed
and made sales approaches by utilizing our technologies
and know-how in developing EV chargers in the 1990s
and 1,500W AC power source devices. The resulting
onboard charger is fitted in the Prius Plug-in Hybrid
introduced to the market by TMC in January 2012.
[ Core Components for Drive Systems ]Toyota Industries applied its proprietary direct-coolingmethod to develop a device with significantly higher
cooling performance. We have entered the field of corecomponents for drive systems such as power control units(PCUs) for the third-generation Prius.

36
Toyota Industries Report 2012

Home-use charging unit

Accelerating Development Activities toContribute to Realization of Low-Carbon Society
Demand for environment-friendly products with highenergy efficiency is expected to grow more rapidly, withthe trend toward electrification likely to expand not only for
automobiles but also for such non-automotive products asmaterials handling equipment. Enhancement of thecharging infrastructure will also take a greater role inpromoting the spread of PHVs and EVs.
Targeting the high-growth, electric-powered vehicle
market, we will accelerate development of technologies
and products in the fields of auxiliary power source
devices, core components and systems for drive systems
and charging infrastructure, thereby making a significant
contribution to the realization of a low-carbon society.

Toyota Industries operates distribution centers for various
industries and customers. During fiscal 2012, operation ofexisting distribution centers was less affected by theearthquake and the flooding and generated a relatively
steady logistics volume. We continued to promote cost
reduction activities at logistics sites based on the thinking
embodied in the Toyota Production System (TPS) tostrengthen our profit structure.
We continued our proactive sales activities by making
proposals to optimize the entire supply chain of eachcustomer. As a result, we successfully obtained two neworders for the consigned operation of distribution centers.
We also actively carry out consulting services to
respond to customer needs in an effort to capture latentdemand for consigned operation of distribution centersand logistics systems.

The Taikoh Transportation Group provides landtransportation services under consignment from many
automotive parts manufactures. The group collects
finished parts from manufacturers, compiles them by theirdestination and delivers to automakers “what is needed,when it is needed and in the quantity needed.”
During fiscal 2012, while the automobile industry, ourprincipal customer, was affected by the earthquake andthe flooding, an early recovery in production operations
and growing demand for eco cars resulted in a steadyincrease in the volume of automotive parts transportation.
Under these circumstances, we continued our profit
improvement activities by promoting efficient cargotransport while aggressively undertaking activities toensure safe and eco-conscious operations.
We will further reinforce our sales activities to capture
new customers and expand our business domain.

Logistics

Automobile [Car Electronics]

The logistics industry recovered from the effects of theearthquake and the flooding in Thailand relatively quickly,
generating a steady logistics volume. Toyota Industries
continued to seek new orders and strengthen thebusiness structure through profit improvement activities.
However, due to such factors as selling our shares in alogistics service subsidiary, Mail and e Business Logistics
Service Co., Ltd., net sales in fiscal 2012 were down
¥14.8 billion, or 14%, from the previous fiscal year to¥92.9 billion.

Land Transportation Services

Business Activities

Business Activities[ Charging Infrastructure ]We developed a public-use charging stand for PHVs and
EVs jointly with Nitto Kogyo Corporation and launchedsales in July 2009. Upon the market introduction of thePrius Plug-in Hybrid, we co-developed with Nitto Kogyo in2011 a home-use charging unit that features a simple
design and easy-to-use functionality.

Taikoh Transportation Group’s land transportation services

37
Toyota Industries Report 2012

■ Initiating Feasibility Test of a Delivery Locker
With the aim of expanding our business domains,
Toyota Industries has conducted a feasibility study
and product development in the delivery locker
business. Based on these efforts, we havesuccessfully developed a locker with advanced
security features, including the ability to identify
individual users, and initiated feasibility trials incooperation with universities and public
transportation service providers. Through thesetrials, we aim to analyze its serviceability for users
and utilize the results in future development.
The recent sharp increase in the use of online
shopping services has spurred the needs for greateruser convenience and higher efficiency in logistics
operations. We will leverage the advanced
functionality of our distribution lockers as a relay
between senders and recipients and acceleratebusiness development targeting home-delivery
service providers, commercial facilities, companies
and homes, with the ultimate goal of contributing to
the establishment of a social infrastructure in thefield of delivery services.

■ Cash Collection and Delivery and Cash Proceeds
Management

Based on the philosophy of founder Sakichi Toyoda, which reflects his strong
commitment to manufacturing, Toyota Industries responds to a broad range of needs
with its extensive product lineup, from air-jet looms, for which we enjoy the top
global market share* in unit sales, to spinning frames and roving frames.

■ Data Storage, Management, Collection and Delivery
Wanbishi Archives Co., Ltd. provides support to about
4,000 companies and organizations, including large
financial institutions and government agencies, to ensure
the security and efficient use of their information assets.
Under its robust security structure, Wanbishi Archives
offers a comprehensive range of services covering theentire lifecycle of critical information assets, from storage
and utilization to destruction.
Wanbishi Archives also offers high value-added
services in its outsourcing business, such as digitizing
paper documents, by being closely involved in customers’
business processes.
Based on a survey conducted after the earthquake inMarch 2011 on how companies manage their information
assets, Wanbishi Archives opened Tohoku Center 1, an
information management center, in Natori, Miyagi
Prefecture, in November 2011. The survey results wereannounced the following month.
After the massive earthquake, making a backup of
information assets has become a matter of great importancein terms of developing a reliable business continuity plan
(BCP). Wanbishi Archives is improving the quality of its
services by enhancing its data backup services through its
secure remote backup and storage operations.
Outside Japan, Wanbishi Archives launched full-scale
information assets management services in China throughits local subsidiary established in Kunshan. Capitalizing on
its experience and know-how accumulated in Japan,
Wanbishi Archives provides support to companies andorganizations doing business in China to ensure thesecurity and efficient use of their information assets.
Through such efforts, Wanbishi Archives is actively
pursuing business opportunities in growth markets.

* Toyota Industries holds the world’s No.1 position for the 15th consecutive year since 1997.
Statistics from the International Textile Manufacturers Federation (ITMF), 2011

Business Overview in Fiscal 2012
In the textile machinery field, unit sales were down 2,000
units, or 28%, to 5,200 units, reflecting a drop in sales of
air-jet looms to China. Net sales accordingly declined ¥4.2
billion, or 10%, from the previous fiscal year to ¥38.5
billion.
With the aim of further reinforcing the Textile Machinery
Business, we made Swiss-based Uster Technologies AG
into a Toyota Industries subsidiary in February 2012.

In the field of spinning machinery, we launched sales of
the RX300 high-speed ring spinning frame in September
2011. This product is equipped with a new type of highly
efficient motor and a new type of pneumatic suction
cleaning device, offering excellent energy-saving
performance.

Textile Machinery

Logistics

Asahi Security Co., Ltd. provides cash collection anddelivery and cash proceeds management services on a
24/7 basis to about 2,450 customers mainly in the retailand service industries.
In addition to cash collection and delivery services
tailored to each customer’s specific needs, Asahi Security
offers comprehensive services that include managementof gift certificates and accounting operations at customers’
retail outlets and aims to be a total service provider forcustomers.
During fiscal 2012, with a view to reinforcing its

Textile Machinery

Business Activities

Business Activities

High Value-Added Services Including Cash
Collection and Delivery and Cash Proceeds
Management and Data Storage, Management,Collection and Delivery

nationwide support service network, Asahi Security
opened cash collection and delivery centers in Okinawa
and Kagoshima prefectures while relocating andexpanding the existing base in Nagoya. Logistics sites
were also opened in Hokkaido, Ehime, Nagano andTochigi prefectures.
At each business base, Asahi Security conducts
regular training on its own as well as emergency training
jointly with local police departments in order to provide
safe and trusted services to customers.

Air-Jet Loom Sales(Thousand units)

12
10
8
6
4
2
0
(FY)

08

09

10

11

12

Further Enhancing Product Appeal

RX300 high-speed ring spinning frame

For our mainstay air-jet looms, we improved the electronic
shedding device that enables the weaving of fabrics withcomplex patterns in May 2011. For this latest device, we
also developed the proprietary water-cooled motor, whichis compact and consumes less electricity. The air-jet loom
also is equipped with a new weft yarn inserting system toreduce the amount of air required to carry the weft yarn.

38
Toyota Industries Report 2012

Asahi Security Co., Ltd.’s cash collection and delivery andcash proceeds management services

Wanbishi Archives Co., Ltd.’s Tohoku Center 1

39
Toyota Industries Report 2012

Strengthening Product Appeal through Alliancewith Uster Technologies AG

Participation in ITMA 2011
In September 2011, ITMA 2011, the world’s largest textile
machinery trade show, was held in Barcelona, Spain. At
the trade show, Toyota Industries displayed the JAT710
air-jet loom, which was equipped with the new electronic
shedding device, a new weft yarn inserting system andother devices, as well as the latest RX300 high-speed ring
spinning frame. By demonstrating their actual operations,
we appealed our excellent technological capabilities andstrong commitment to environmental performance tovisitors from many countries, including India, Brazil andPakistan.

In February 2012, Uster Technologies AG joined the
Toyota Industries Group. Uster develops, produces andsells cotton classing and yarn testing instruments that areused throughout the world. Uster defined quality
benchmarks using yarns that it had stockpiled from allover the world for more than 50 years and subsequently
developed yarn testing instruments based on thesebenchmarks. Yarns tested and cleared with these
instruments guarantee a globally accepted level of quality.
The company also possesses leading-edge sensor
technology. We intend to develop innovative products byapplying their world’s most advanced technology to our
air-jet looms and other textile machinery.

Toyota Industries Report

2 0 12Business Activities

Cotton classing instrument

Textile Machinery

Corporate Social Responsibility
Corporate Philosophy

P

42(Toyoda Precepts, Basic Philosophy and CSR Policy)

Corporate Governance
Relationship with Our Customers
Relationship with Our Associates
Yarn testing instrument

Relationship with Our Business Partners
Relationship with Our Shareholders and Investors
Relationship with Our Local Communities

Toyota Industries’ booth at ITMA 201140

Toyota Industries Report 2012

43−49
P 50
P 51−52
P 53
P 54
P 55−56
P

Uster Technologies AG

41

Toyota Industries Report 2012

Corporate Philosophy

Corporate Governance(Toyoda Precepts, Basic Philosophy and CSR Policy)
As a globally operating company, Toyota Industries seeks sound and efficient management to maintain the trust of every stakeholder.

Based on the Basic Philosophy that carries on the spirit of founder Sakichi Toyoda,
the Toyota Industries Group contributes to the harmonious and sustainable
development of society and the Earth under its CSR Policy.

Guided by a strong ambition to “contribute to society andthe world through monozukuri (manufacturing),” Toyota
Group founder Sakichi Toyoda devoted himself to “endlesscreativity, inquisitiveness, and the pursuit of improvement”
and made various inventions including the non-stop
shuttle-change Toyoda Automatic Loom, Type G. The
spirit of Sakichi is enshrined in the Toyoda Precepts,
formulated in 1935 and passed down today in our Basic
Philosophy, which we established in 1992 and revisedin 1998.
The business environment surrounding Toyota
Industries is continuing to evolve rapidly and dramatically.
Regardless of changes in the business environment andvalues, we remain unchanged in our belief that realizing
our Basic Philosophy is the cornerstone of the Toyota
Industries Group’s corporate social responsibility (CSR).
Acting on this belief, in March 2009 we formulated andimplemented the Toyota Industries Group CSR Policy,
which clarifies our relationships with stakeholders, namely
customers, employees, business partners, shareholders
and local and global communities.
The CSR Policy is divided into nine areas, and the CSR
Committee* confirms and evaluates the implementation
status of this policy and promotes CSR activities.
Corporate Social Responsibility Corporate Philosophy* Chaired by the president, the committee convenes twice per year and consists ofdirectors, managing officers and corporate auditors.

CSR Areas

Customer First
SocialContributions■ Toyoda Precepts• Always be faithful to your duties, thereby contributing to
the Company and to the overall good.
• Always be studious and creative, striving to stay ahead of
the times.
• Always be practical and avoid frivolousness.
• Always strive to build a homelike atmosphere at work thatis warm and friendly.
• Always have respect for God, and remember to be
grateful at all times.

Toyota Industries strives to enhance the long-term stabilityof its corporate value and maintain society’s trust by
earnestly fulfilling its CSR commitments in accordancewith its Basic Philosophy.
To that end, Toyota Industries strives to enhance its
corporate governance based on the belief that maintaining
and improving management efficiency and the fairness
and transparency of its corporate activities is of utmost
importance.

Corporate Governance Structure■ Basic Philosophy[Respect for the Law]
Toyota Industries is determined to comply with the letterand spirit of the law, in Japan and overseas, and to be fair
and transparent in all its dealings.
[Respect for Others]
Toyota Industries is respectful of the people, culture, andtraditions of each region and country in which it operates. It
also works to promote economic growth and prosperity inthose regions and countries.
[Respect for the Natural Environment]
Through its corporate activities, Toyota Industries works tocontribute to regional living conditions and social prosperity
and also strives to offer products and services that areclean, safe and of high quality.
[Respect for Customers]
Toyota Industries conducts intensive product research andforward-looking development activities to create new value
for its customers.
[Respect for Employees]
Toyota Industries nurtures the inventiveness and otherabilities of its employees. It seeks to create a climate ofcooperation, so that employees and the Company canrealize their full potential.

Implementation Structure
Toyota Industries convenes monthly meetings of the Boardof Directors to resolve important management matters andmonitor the execution of duties by directors. We also
appoint outside directors who are knowledgeable about
our business operations. They attend meetings of theBoard of Directors and give opinions and ask questions as
deemed necessary. Through this supervisory function ofoutside directors, we ensure the legality and validity of theBoard’s decisions as well as directors’ execution of duties
Shareholders’ Meetings
Selection/
Dismissal

Contributing to Sustainable
Development in Harmony
with Society and the Earth

Safety and
HealthFair andTransparent
Business
Activities

ComplianceManagementof Confidential
Information

Timely andProper
Disclosure

web42
Toyota Industries Report 2012

Access Toyota Industries’ Website for details.
http://www.toyota-industries.com/corporateinfo/philosophy/

Cooperation

Independent Auditors
Board of Directors

ReportingWe, Toyota Industries Corporation and our subsidiaries,
contribute to the harmonious and sustainable developmentof society and the Earth through all business activities that
we carry out in each country and region based on our Basic
Philosophy.
We comply with local, national, and international laws andregulations as well as the spirit thereof, and we conduct ourbusiness operations with honesty and integrity.
In order to realize sustainable development, we carry out
management with an emphasis on stakeholders, and wewill endeavor to build and maintain sound relationships with
our stakeholders through open and fair communication.
We expect our business partners to support this initiative
and act in accordance with it.

Selection/
Dismissal

Reporting

ReportingBoard ofCorporate Auditors

Respect for
Employees

Monitoring

Appointment/
Monitoring

Corporate
Auditor’s
OfficeDiscussion/
ReportingPresident
Monitoring

Directives

Accounting
Audit

Management
Committee(

Deliberates on importantmatters frommanagement’s perspective

Directives

Business Operation
Committee) (Discussion/
Reporting

Follows up on theexecution ofbusiness operations

Directives

Directives

Management
Council) (Reporting

Reports on andconfirms execution ofbusiness operations

Directives)

Reporting(monthly)

ReportingCommittees*1
Functional
Meetings*2
Policies*2: Functional
Meetings

CSR

Human Resources

Environmental
Quality

Monitoring

Reporting■ CSR Policy (Preamble)
Environmental
Conservation

Selection/
Dismissal*1: Committees

Human Resources
Development

Corporate Social Responsibility Corporate Governancefrom an objective perspective. The Management
Committee, which is composed of directors above theexecutive vice president level as well as relevant directors,
managing officers and corporate auditors, deliberates on avariety of issues concerning important management
matters such as corporate vision, management policies,
medium-term business strategies and major investments.
Toyota Industries has a divisional organization system,with significant authority delegated to each businessdivision. For especially crucial matters, however, we haveestablished the Business Operation Committee to enable
the president to meet with the heads of each businessdivision regularly to monitor and follow the status of theirbusiness execution. At meetings of the Management
Council, directors, managing officers and corporate
auditors convene to report and confirm the monthly statusof business operations and share overall deliberations at
Board of Directors meetings and other managementrelated information.
In addition, issues pertaining to human resources,quality, production, technologies, procurement and otherfunctions are discussed at the corresponding functional
meetings. We have also put in place committees todeliberate on more specific matters, such as CSR, theenvironment, human resources development and exporttransaction controls. These functional meetings andcommittees discuss important matters and action themes
in respective areas.

Basic Perspective of Corporate Governance

Production
Export Transaction
Controls

Reporting

Safety and HealthTechnologies

Audit Dept.

Internal Reporting
Audit
ReportingEmergency Profit
Improvement

Procurement

These entities deliberate and follow up on issues inrespective areas.

Directors/Managing Officers
Business Divisions/In-House Company/Departments
Subsidiaries/Affiliates

Emergency Profit Improvement Committee
In response to the rapid downturn in our businessenvironment, Toyota Industries has established theEmergency Profit Improvement Committee on December
1, 2008 directly under the president. We have been
carrying out profit improvement activities throughout theCompany via different subcommittees.

43
Toyota Industries Report 2012

Board of Corporate Auditors System
Toyota Industries has adopted a board of corporate
auditors system. Two full-time corporate auditors andthree outside corporate auditors attend meetings of theBoard of Directors to monitor the execution of duties bydirectors. At the same time, meetings of the Board of
Corporate Auditors are held once a month to discuss andmake decisions on important matters related to auditing.
The full-time corporate auditors carry out auditing byattending primary meetings and receiving reports directlyfrom directors. Additionally, we have assigned dedicatedpersonnel, while corporate auditors monitor the legality
and efficiency of management through collaboration withindependent auditors and the Audit Department.
As a publicly listed company, Toyota Industries strives
to ensure the fairness and transparency of management.
Following the Securities Listing Regulations stipulated
respectively by the Tokyo Stock Exchange, Osaka
Securities Exchange and Nagoya Stock Exchange, we
designated as independent auditors two outside auditors
who have no conflicts of interest with our shareholders tofurther enhance our corporate governance.

We determined that our internal controls over financial
reporting as of the end of fiscal 2012 are effective, andaccordingly, submitted an Internal Control Report in June
2012. The report was reviewed by independent auditors
and judged fair in their Independent Auditors’ Report.

Compliance
Four Pillars of Compliance Activities

Improvement ofinternal controls

Review of internal
controls by
Audit Department

Audit on internal controls by independent auditors

44
Toyota Industries Report 2012

Annual financial report

Detection of
insufficiencies

Internal control report

Internal control activities undertaken by eachdepartment and consolidated subsidiary(Establishment and operation of internal controls)

Independent
auditors’internal
control report

Give directives

Departments in charge of legal compliance: 11;
supporting department: 1
Portable Code of
Conduct Handbook
for employees in
China (TIK, TACK)

Toyota Industries
Corporation



Checking
andConfirming

Leadership/
Organization
Codes of
Conduct

Education on
relevant laws
and regulations

Declaration by
the president/
Compliance
Committee

Conduct
guidelines

Establishment and Reinforcement of
Implementation Organization
To promote compliance throughout the Toyota Industries
Group, we have established the Compliance Subcommittee(led by an executive in charge of legal affairs*) as asubordinate organization to the CSR Committee. Every
1 We encouraged the establishment of compliance■committees at our consolidated subsidiaries inJapan and the appointment of compliance officers at
consolidated subsidiaries outside Japan in an effort tohelp them set up their own voluntary compliancepromotion structures.
2 The Compliance Subcommittee compiled and reviewed■
cases of law violations within the Toyota Industries
Group and measures taken to prevent recurrence
every six months as well as promoted the sharing andhorizontal dissemination of information among theGroup companies as deemed necessary, providing
support to raise the level of compliance acrossthe Group.
* As of March 31, 2012

Consolidated
subsidiaries
in Japan

Consolidated
subsidiaries
outside Japan

Compliancecommittees

Four Pillars of Compliance Activities

Thoroughly
Informing
Employees

Code of Conduct
for Raymond
employees inNorth America

Compliance Subcommittee

We believe that compliance means both adhering to laws
and regulations and observing ethics and social norms. In
order to ensure compliance, it is vital that we raise theawareness of each and every employee.
Under the strong leadership of top management, we
promote compliance throughout the Toyota Industries
Group, including consolidated subsidiaries in and outside
Japan, by formulating a Code of Conduct and thoroughly
informing employees together with checking andconfirming compliance.

CSR selfassessment

formulate and deliver to employees
their own Code of Conduct matchedto their respective business lines andcorporate cultures. Toyota Industries’
29 consolidated subsidiaries in Japanand 54 consolidated subsidiaries
outside Japan have already createdtheir own Code of Conduct.

Complianceofficers

year, the subcommittee formulates an action policy andconducts follow-up checks on its progress on a quarterly
basis.
In fiscal 2012, we primarily focused on reorganizing
the structure to promote compliance throughout the entire
Toyota Industries Group.

Formulation of Code of Conduct andDissemination
Toyota Industries has formulated the Code of Conduct,
which serves as conduct guidelines that should beobserved by employees, and distributed a portable version
to every employee.
Consolidated subsidiaries in and outside Japan

Thoroughly Informing Employees about
Applicable Laws and Regulations
Toyota Industries provides compliance education to alllevels of employees. This includes providing required
legal knowledge to employees according to their job
ranks or positions, familiarizing them with the emergency
procedures that should be followed upon the occurrenceof a problem and educating them on risk management.
To new or young employees, in particular, we provide
guidance on “what to do” and “what not to do” based onlaws and corporate ethics, using our Code of Conduct as
an instructional material.
In order to provide effective education, we devise
various ways to actively engage employees. For example,
lectures are interactive and participatory, featuring group
discussions to deepen the level of understanding among
participants. We also survey participants’ needs (questions
and concerns) beforehand and offer lectures in responseto these needs, thereby raising the degree of usefulness
and satisfaction of compliance education.

Compliance Officers (outside Japan) and Compliance Committees (in Japan)
Regional
Representativecompliance officer
for Europe

AndreasLundh

Europe:24 compliance officers

Asia:
9 compliance officers

North America:
12 compliance officers

Japan:
36 companies
Compliance officer
in India

T R Nagaraj

Australia:
1 compliance officer

Corporate Social Responsibility Corporate GovernanceCorporate Social Responsibility Corporate GovernanceInternal Control Assessment System (Based on J-SOX)CSR Committee

Report activities

Internal Control System
In accordance with the Corporation Law of Japan, in
May 2006 Toyota Industries’ Board of Directors adopted
the Basic Policies for the Establishment of an Internal
Control System (Basic Policies) to ensure compliance, risk
management as well as the effectiveness and efficiencyof business operations. The CSR Committee, at its
meeting held in March, assesses the progress made in
implementing the Basic Policies in the year under review
and determines actions for the coming year, including
reviewing the implementation structure and enhancing
day-to-day operational management.
Furthermore, based on the Financial Instruments andExchange Law (so-called Japanese Sarbanes-Oxley Act(J-SOX)), we have established and appropriately operated
an internal control system to maintain the reliability offinancial reporting. The system’s status and progress arereviewed by the Audit Department and audited byindependent auditors. We determine which Toyota Industries
Group companies fall within the scope of J-SOX based on
the degree of impact on the reliability of financial reporting.

Organization for Promoting Compliance

Compliance officer
in South America

Edson
Masayuki
UhiedaRegional
Representativecompliance officer
for North America

Timothy A.
BarkerSouth America:
2 compliance officers

45
Toyota Industries Report 2012

In fiscal 2012, we started providing education on the
Antimonopoly Act of Japan to the sales executives ofToyota Material Handling Japan (TMHJ) dealers throughout
the country. We plan to extend the scope to include
consolidated subsidiaries outside Japan and offer detailed
support for respective companies.
Furthermore, we designate a particular month as“Corporate Ethics Month” and give all employees anopportunity to think about compliance through workplacemeetings.
As a means to disseminate information to consolidated
subsidiaries, we regularly provide executive training inJapan and hold regional compliance officers meetingsoutside Japan. These are designed to make a timely
response to any amendments to laws and regulations,share information on measures adopted to handle
violations or issues and take the necessary action toprevent the recurrence of any problems.

Management of Confidential Information

Checking and Confirming Compliance
In order to confirm the status of compliance, we request
internal departments and our consolidated subsidiaries
in and outside Japan to perform a compliance selfassessment.
Toyota Industries’ subsidiaries answer a checklist
comprised of 60 to 250 items defined for each of theapplicable laws. If any of these items are found to be
insufficient, each responsible department and respective
subsidiaries work together to make improvements.
We also operate a compliance hotline that allows
employees and their families to seek advice oncompliance-related matters without being exposed tonegative consequences, as well as to make adequate
responses. This compliance hotline is cited in our Code of
Conduct, and we regularly hand out a pamphlet tosubsidiaries’ employees to inform them of the service.

Seminar on the Antimonopoly Act at a TMHJ dealer

Compliance Education Provided
Toyota Industries
Executive training

Conducted training for newly appointed executives and legal seminars for executives

Rank-based (clerical, technical)

Promoted training on quality, safety, the environment, labor, management of confidential
information, export transactions, subcontracting and the Antimonopoly Act

Training by function★11,600 employees
participated★9,200 employees
participatedOngoing initiative

Ongoing initiative★8,200 employees
participated

Basic Perspective

Toyota Industries recognizes that the personal informationof customers, employees and business partners as wellas information concerning our technologies and sales
activities are assets that need to be protected. Acting on
this belief, we are making our utmost efforts to safeguard
confidential information and strengthen its management as
one of the CSR areas.

Implementation Structure
Toyota Industries has set up the Information Security
Subcommittee (led by an executive in charge of generaladministration) as a subordinate organization to the CSR
Committee to promote proper management of confidential
information, taking appropriate actions against the leakageof the confidential information and complying with the
Unfair Competition Prevention Act and the Personal
Information Protection Law.
To thoroughly implement the initiatives adopted by
the subcommittee, we appoint information security
administrators*1 and information security managers*2 ateach department. We strive to raise awareness about
information security among their staff by holding
workplace meetings and conducting self-checks regarding
their information security practices.
Examples of such activities include requiring
employees to obtain permission when taking their PCs
off the premises, taking antitheft measures, restricting thecopying of electronic data on recording media, monitoring
email correspondences and regularly reviewing rules for
management of confidential information.
In addition, we collaborate with other Toyota Group
companies to carry out “All Toyota Confidentiality
Management Month” activities in May and October.
As part of this effort, we are working to discourage
and monitor unauthorized carrying out of PCs andrecording media.
Our consolidated subsidiaries in and outside Japan also
appoint respective information security administrators*1
and information security managers*2. We also haveformulated common guidelines concerning managementof confidential information and follow up on their activities
on a periodic basis.

Based on the Basic Policies for the Establishment of anInternal Control System, which was set up by the Board of
Directors in May 2006 in compliance with the Corporation
Law of Japan, Toyota Industries is working to strengthen
regulations and a structure to promote risk management.
Toyota Industries considers that the basics of risk
management involve incorporating measures to preventand reduce potential risks into daily routines, and ensuring
quick and precise actions to minimize the impact on
business and society when a risk becomes apparent.

Implementation Structure
Business divisions and other departments at the Head
Office develop and promote annual action policies that
integrate measures to prevent and control risks related
to quality, safety, the environment, personnel, exporttransactions, disasters and information security.
Progress is assessed and followed up by each functional
management entity such as the CSR Committee and theEnvironmental Committee. The functional departments atthe Head Office responsible for quality, safety and theenvironment define rules and procedures, conduct training
and auditing of business operations and carry out on-sitechecks from a perspective of the entire Group, including
consolidated subsidiaries, in an effort to support therisk management activities of business divisions andconsolidated subsidiaries.
Our Crisis Response Manual provides specificexamples of risks and lays out basic rules to follow
when a risk becomes evident. This manual is distributed
to executives and department heads of Toyota Industries
as well as to those in managerial positions at consolidated
subsidiaries as a means of facilitating risk management.

Corporate Social Responsibility Corporate GovernanceCorporate Social Responsibility Corporate GovernancePamphlet regarding compliance hotline

Basic Perspective

Risk Management*1: Head of each department*2: A person within the department, appointed by the head

Training for affiliated companies

Promoted group training via executive training seminars, subcontractor safe work training
and public relation division training, and through visits to dealers★2,000 employees
participated★1,400 employees
participated★1,800 employees
participatedOngoing initiative

Crisis Response Manual

Consolidated subsidiaries
in Japan46
Toyota Industries Report 2012

Conducted training on the
Code of Conduct, safety, etc.
Not surveyed

Not surveyed

2010

2011

Ongoing initiative★11,700 employees
participated
2012

2013

Poster to raise awareness for
management of confidential
information

(FY)

47
Toyota Industries Report 2012

Risk Management
Response to a Possible Large-Scale Earthquake
Toyota Industries considers the occurrence of a major
earthquake in Japan as one of the most significant risks.
To ensure adequate Company-wide response when
an earthquake occurs, we define disaster prevention
measures in the three areas of pre-disaster mitigation,
initial response to be taken immediately after the disasterand production recovery.
In addition, we focus our disaster prevention measureson the three basic policies of placing maximum priority on
human life, placing top priority on the recovery of local
communities and ensuring the quickest possible recovery.
In fiscal 2012, we fully reviewed our disaster prevention
activities throughout the Toyota Industries Group following
the catastrophic Great East Japan Earthquake. Specifically,in addition to standard evacuation drills we conductedemergency training based on the assumption that power
failures and a tsunami have occurred and made greater
efforts to raise awareness through a lecture by a disasterprevention consultant and various workshops.

1) Equipment
We developed quake resistance standards for equipment
within plants and implemented measures to avoid turningover, falling and sudden sliding of equipment.
2) Buildings
We created a prioritized list of buildings requiring
anti-seismic treatment and have been carrying out
reinforcement work.
3) Prevention of Secondary Disasters
Through workshop activities, we identified latent risksof secondary disasters, such as fire, in each plant andconducted risk assessment and prioritization.

Employees evacuating to the second floor
to avoid tsunami

Workshop activity

Meetings of Disaster and Fire
Prevention Council (twice/year)

Chairman: Central general safety andhealth supervisor (Executive vice president)

Meetings of Disaster Prevention
Measures Promotion Council(six times/year)

Chairman: Head of the General Affairs
Department (Head Office)*

Secretariat

Pre-disastermitigation measures(once/month)

Initial response(once/month)

Production recovery(once/month)

1) Initial Response Procedures
Placing maximum priority on the protection of human
life, we formulated and disseminated initial response
procedures to be followed by employees immediately
after a disaster.
2) Safety Confirmation System
In July 2011, we started operating a safety confirmation
system to account for employees and their families in caseof an earthquake. When an earthquake with a magnitudeof 5 or greater occurs, this system automatically sends
email messages to employees’ cell phones and otherdevices, to which employees send replies together withinformation on their safety status.
Lecture on disaster prevention

3 Production Recovery■

Occurrence ofan earthquake

Request employees tto report
rt their safety status* As of March 31, 2012

1 Pre-Disaster Mitigation Measures■

Activities in this area primarily focus on disaster prevention
measures concerning equipment and other devices toprotect the lives of employees.

48
Toyota Industries Report 2012

Safety status
stat of employees
mployees
eir families
themselves and their

Employees

Damage to their houses
houuses
ReportReporrrt
Superiors

Data center
Da
Confirm(2) Securing Logistics Routes
We will conduct surveys on the infrastructures around eachplant and review the results to define safe logistics routes.
(3) Risk Avoidance regarding Production Information
In order to ensure the security of production-related
information and information systems, we are applying
anti-seismic reinforcements to the server rooms of ourplants, strengthening information backups and storingthese backups in remote locations.
4) Initiatives Related to Procedures and Methods(1) Response toward Production Bases outside Japan
In order to reduce the impact of a disaster occurring inJapan to our production bases outside Japan, we will
identify parts supplied from Japan and the logistics leadtimes to build a structure that allows us to quickly respondto emergency situations.

Safety Confirmation Process Flow

Working group activities■ Primary Measures for Disaster Prevention4) Strengthening Activities to Raise Awareness for
Disaster Prevention
In July 2011, we invited a disaster prevention consultant
to give a lecture on disaster prevention for the membersof the Disaster and Fire Prevention Council, including
executives. Through the lecture, participants reviewed thelessons learned from the Great East Japan Earthquake
and reaffirmed what needs to be done.

3) Initiatives Related to Parts Supplies, Logistics
and Information(1) Measures concerning Supply Chain
In order to respond swiftly and adequately to a disaster,
we are currently compiling information on our supply
chain. Using this information, we will identify potential risks
and consider countermeasures in advance.

To meet the expectations of society and customers in andoutside Japan, Toyota Industries has been implementing
measures to quickly restore production operations.
Previously, such activities had been undertaken by individual business divisions. Starting from fiscal 2011, we havebeen enhancing function-based initiatives by setting up a
Company-wide production recovery working group.
1) Initiatives Related to Organization and Personnel
Assignments(1) Organization for Recovery
We reviewed our existing structure for production recovery
and clearly defined the roles of each department.
Anticipating emergency situations and a prolonged recovery
period, we set up a structure in which two or more
responsible persons are appointed at respective
organizations in the Head Office and each business division.

(2) Formulation of Production Recovery Response
Manual
We formulated the Production Recovery Response Manual,
which incorporates what we have experienced and learned
during the Great East Japan Earthquake, with the aim offacilitating swift production recovery throughout the Toyota
Industries Group.

Production Recovery Response Manual

Corporate Social Responsibility Corporate GovernanceCorporate Social Responsibility Corporate Governance

Structure for Promoting Disaster Prevention Measures

2 Initial Response■(2) Personnel Responsible for Recovery Work
We have established a structure to quickly launch
production recovery by preselecting leader candidates
capable of directing recovery activities and making
adequate responses at a place of disaster as well as
recovery personnel having appropriate experience,
knowledge and skills.
2) Initiatives Related to Equipment(1) Measures concerning Equipment
We identified processes and equipment that require a longer
time to recover and prioritized our equipment recovery
efforts. Based on the results, we will determine methods ofrecovery and clarify required materials and supplies.

Evacuation drill in case of
possible power failure■ Implementation Structure
The Disaster and Fire Prevention Council devises
overall policies while the Disaster Prevention Measures
Promotion Council monitors progress. Specific measures
are formulated and implemented by a working groupconsisting of members of the functional departments atthe Head Office and representatives from each plant.

3) Practical Disaster Drills
In addition to conventional disaster drills, we conductedevacuation drills assuming cases of power failures and atsunami.

49
Toyota Industries Report 2012

Relationship with Our Customers

Relationship with Our Associates

Based on a quality first approach, Toyota Industries strives to realize monozukuri (manufacturing) that quickly responds to the diverse,
ever-changing needs of customers while ensuring the highest level of quality.

Our ultimate goal is to create workplaces that give top priority to the safety and health of each associate and where diverse humanresources can exercise their potentials and play active roles.

“A product should never be sold unless it has
been carefully manufactured and has beentested thoroughly and satisfactorily.”
Carrying on the spirit of founder Sakichi Toyoda, Toyota
Industries strongly believes that quality is the lifebloodof a company. Focusing on quality first and ensuring
customer safety and reassurance are our most important
responsibilities to our customers and form the basis of
our CSR approach.
Toyota Industries strives to maintain and improve thetotal quality of our corporate activities, which encompasses“product quality,” “marketing quality” and “management
quality.” “Product quality” is embodied in the safety,
eco-friendliness, durability, ease of use and workmanshipof our products, while “marketing quality” entails excellent
sales and service in addition to these attributes and“management quality” further enhances our overall
corporate image and brand strength in terms of all ofthese attributes.

and structural aspect, and if deemed necessary, theDR system itself is reviewed to prevent recurrence insubsequent models.

Activities Based on the Quality Guidelines
Every year, we issue the Quality Guidelines, which identify
priority quality implementation items to all production
bases in and outside Japan. The progress made in
implementing these guidelines is reviewed at the
Quality Functional Meeting, which is chaired by the
executive vice president in charge of quality control andattended by top management, and through genchi
genbutsu (go and see for yourself) inspections that also
cover affiliated companies. Issues raised through these
activities are followed up at meetings of the Companywide Council of Heads of Quality Assurance Departments
chaired by a quality control department head.

Types of Quality Sought by Toyota Industries

y
alit
qu
ct
du
Pro

●Sales●Service●Workmanship

Designquality

Brand identity
Quality inspection by top management

Ensuring the Highest Quality

50

Placing top priority on our “Customer First” philosophy,
Toyota Industries undertakes product development thatmeets customer expectations.
At Toyota Industries, development of a new productentails defining specific goals to incorporate quality in every
stage from product planning and design to production
preparation, production, sales and after-sales services.
We perform a design review (DR), which allows a productto proceed to the next stage only when a responsible
business division head examines and approves whether
the product has reached the target quality level.
Should a defect occur after the product launch, thequality assurance departments of each business division
immediately devise necessary measures. At the sametime, a probable cause is identified from both the technical

Toyota Industries Report 2012

In fiscal 2012, as part of activities to “reinforce quality
assurance that also encompasses the supply chain,”which is stipulated as one of the priority items underthe Quality Guidelines, we conducted a full review ofquality audit methods of our business partners. Basedon previous quality audit data, we defined evaluation
items to ensure manufacturing quality and created a new
Quality Audit Sheet with five levels of requirements foreach item. This audit sheet allows quantification of thequality assurance efforts undertaken by 70 major business
partners. In addition, it clarifies the target level, thereby
enabling us to provide more precise quality improvement
assistance to each company.
In fiscal 2013, Toyota Industries will steadily implement
priority action items defined under the Quality Guidelines inand outside Japan, with the aim of improving the level ofcustomer satisfaction.

In accordance with our fundamental policy of “creating
people capable of autonomously maintaining occupationalsafety and health,” Toyota Industries strives to prevent
industrial accidents and occupational disorders as well as
realize better work environments.
In fiscal 2012, we carried out activities under thefollowing three principal policies.
1 Create a Foundation for Realizing a Safety■

Oriented Culture
As part of associate safety education, we further enhanced
and upgraded our safety dojo in each plant and conductedtraining on basic procedures for safe operations.
2 Promote Risk Assessment Activities■
Risk assessment activities allow us to identify risks
within work processes and let operators gain a better
understanding of these risks. Toyota Industries recognizes
risk assessment efforts as one of the most importantmeasures against industrial accidents. To enhance these
activities, we have reviewed and organized issues in ourcurrent risk assessment system. For equipment alreadyinstalled in our plants, we reorganized the specificstructure to raise safety awareness among operators andreduce risks by identifying risks more precisely.
3 Promote Fundamental Safety■
As a means of promoting fundamental safety, we havebeen introducing risk assessment into the production
preparation phase when we establish new facilities.
We have also revised the standards regarding machineryand equipment, which are used when we fabricate
equipment, according to the administrative instructions
concerning industrial safety and health and other foreign
standards. In addition, we formulated facility standards toprevent equipment-induced fires.

Safety and health inspection at a consolidated subsidiary in Japan

Initiatives for Health Management andImprovement
As a task for the medium term, we are promoting
associate health improvement programs to counter
risks associated with aging and greater stress.
Specifically, we proactively provide health guidance toprevent lifestyle diseases for persons with metabolic
syndrome and actively encourage follow-up after annual
health checkups. We also conduct periodic age-based
health education for all associates to maintain andpromote their health and wellness.
Mental health care activities include providing self-care/line-care education and building closer collaboration withexternal medical institutions. We have also successfully
worked to prevent relapses by launching a return-to-worksupport program for persons on long-term leave andconducting a survey on workplace stress levels.

Assisting Consolidated Subsidiaries in Achieving
Even Higher Safety and Health Levels
We have been working with the relevant departments
to build a system that facilitates stronger and closer
relationships with our consolidated subsidiaries in Japan.
More specifically, we provide executive training,
conduct genchi genbutsu inspections and offer
guidance to help subsidiaries achieve higher safety
and health levels.
For our consolidated subsidiaries outside Japan, we
promote the sharing of such information as industrial
accidents, suggest measures to prevent similar accidents,
implement cross-deployment of safety dojos and provide
guidance through genchi genbutsu and activity support.

Corporate Social Responsibility Relationship with Our Associates●Brand strength●Corporate image

nt

e
em
nag
Ma ality
qu

ity
ual
ng
gq
uri
etin
act
nuf
Ma alityqu●Safety●Eco-friendliness●Durability●Ease of use

rkMa

Corporate Social Responsibility Relationship with Our Customers

Quality levels that
customers truly
expectBuilding a Safety-Oriented Culture that Aims for
Zero Industrial Accidents

Health guidance for preventionof lifestyle diseases

Physical fitness measurement conductedduring age-based health education

51
Toyota Industries Report 2012

Enhancing Team Strength
Toyota Industries believes that enhancing team strengthis vital to forming a dynamic workforce and achieving
sustainable corporate growth.

Technical Skills

Management Skills

s %XPERTISE
s 3KILLS
s +NOW HOWs 41s 40- ETCTeam Strength

,
E
EA
EAD
DER
ERSH
SHIP
HIP
P
,EADERSHIP
4O PURSUEPURURRSSUURS
SUE IMPROVEMENTS
IMP
IMPRO
PRRRO
OVE
OV
EMEN
EM
M
MENTS
TS
4O
THOR
TTHO
TH
HOR
OROUG
OUGH
GH
HLY
LY ANDA
AN
ND
D CONTINUOUSLY
CO
CO
ONTI
ONT
ON
NTITINUOUN OUSLY
NUO
SLLYY
THOROUGHLY

Spirit of Harmony

4EAMWORK
7ELL ROUNDED HUMANITY

Global Human Resources Conference

Toyota Industries Report 2012

Toyota Industries is creating a bright, energetic and caring
work environment that fosters a dynamic workforce andallows every member to demonstrate his or her capabilities
both as an individual and as a team. Throughout theworld, we are proactively encouraging communication
not only during work hours but also through social
gatherings, sports days, summer festivals, Group-wide
ekiden long-distance relay races and cheer squads forvarious sports events.

Establishing Work Environments Where Diverse
Human Resources Can Play Active Roles
We are implementing a variety of measures to create work
environments where a diverse range of human resources
can fully exercise their capabilities. These measures
include supporting a balance between work and child/nursing care, supporting the employment of persons withdisabilities and enhancing a re-employment system for
associates who reach the mandatory retirement age.
■ Balance between Work and Child/Nursing Care
We have already rolled out several initiatives to help ourassociates balance their work and family. For example,
we regularly hold exchange meetings to share information
concerning work-life balance and increase awarenessamong associates. In fiscal 2012, we enhanced thesystem for leave to allow parental care of children with
illnesses as well as the system for nursing care leave.

Toyota Industries encourages open procurement and seeks co-existence and co-prosperity with our business partners based on
mutual trust. We also facilitate environmentally preferable purchasing and CSR-oriented purchasing practices.

Fair Competition Based on an Open Door Policy
We have a fair entry process that allows all potential
business partners, regardless of nationality, size andexperience, the same opportunity to offer us their products
or services through our Website to achieve broad andopen procurement.
We comprehensively evaluate our business partners
based on quality, price, their adherence to delivery times,
technological capabilities and company stability. We
also assess their initiatives for safety, the environmentand compliance as we strive for the timely and stableprocurement of excellent products at lower costs basedon fair business transactions.
For business partners seeking advice on mattersconcerning subcontract transactions, persons who are notdirectly involved in such transactions serve as a point ofcontact and offer assistance from a third-party position.

Co-Existence and Co-Prosperity Based on
Mutual Trust
We work hard to realize co-existence and co-prosperity
with our business partners based on mutual trust. We holdannual procurement policy meetings and executive training
for major business partners to gain their understanding
and cooperation. In order to consistently procure better
products, we also conduct quality and technical skills
training programs and provide guidance directed toward
improving manufacturing processes at business partners’
production sites along with safety and health education.

Diversity Navi exchange meeting■ Employment of Persons with Disabilities

We respect the idea of people with and without disabilities
working together and sharing life and work values. Under
this basic policy, we continue to employ persons withdisabilities every year. They are assigned to a variety ofsections and work with other staff members to performtheir designated tasks. In fiscal 2012, the number andratio of associates with disabilities on a non-consolidated
basis were 194 and 2.03%, respectively.
■ Re-Employment of Retirees
We have established a system to rehire staff of retirementage, offering them an opportunity to make the best use of
their advanced expertise and skills in carrying out business
operations. We have also been making Company-wide
efforts to set up a comfortable working environment for
older associates.

Participants in Training and Guidance Sessions
Description

Total Number ofParticipants to Date

Quality and technical skills training

288 persons

Support on process improvement

51 companies

Qualification education in safety andhealth and other areas

709 persons

In addition, we have specified substances of concernthat are prohibited for use in our products or manufacturing
processes, and requested our business partners toprevent the target substances from being mixed into theirproducts and establish a management structure. Our
procurement system also requires them to submit inadvance a non-use declaration of prohibited substances
as well as data on substances of concern. Only after
confirmation is carried out do we purchase these parts.

Localization of Business for Good Corporate
Citizenship
In view of increased local production outside Japan, we
promote procurement from local business partners inorder to contribute to the local community.

Further Promoting CSR
We provide education internally to all relevant persons forthe purpose of strictly complying with the competition lawsof each country and to maintain fair business transactions.
In fiscal 2012, a total of 734 people attended. It is also
Toyota Industries’ and our business partners’ policy tostrictly abide by both the letter and spirit of laws andregulations while also carefully handling and protecting
confidential corporate information of our business partners
and Toyota Industries.
We have developed the CSR Guidelines for Business
Partners, which describe our CSR-related requirements forour business partners in Japan, and encourage them toengage in CSR activities. We also provide our major
business partners with tools and relevant information to
support their respective CSR activities and require periodic
self-inspections to be conducted.
We will continue to promote activities around the world
to comply with CSR throughout our supply chain.

Corporate Social Responsibility Relationship with Our Business Partners

Corporate Social Responsibility Relationship with Our Associates

We believe that team strength is made up of “technicalskills” that form the basis of manufacturing operations,“management skills” to make maximum use of technicalskills and “spirit of harmony” that supports both. Whilefurther enhancing our team strength, we are striving toextend and hand it down beyond all business domains,
generations and geographic regions.
■ Technical Skills
We are currently working to enhance the skills of ourtechnical staff primarily by providing training programs at
the Technical Learning Center. At the 49th National Skills
Competition held in December 2011, the team of Hiroshi
Himeno and Ryo Yamamura won a gold medal in the“mechatronics” category. We also won medals in the fivecategories of “electrical welding,” “structural ironsmith,”“mechanical engineering design—CAD,” “lathe” and“mechanical device control.”■ Management Skills
A training program is provided for all administrative
staff and engineers to increase their problem-solving
capability. In addition to launching this training program atbusiness bases outside Japan, we invite human resources
administrators from overseas business bases for a Global
Human Resources Conference with the aim of sharing theway we work, our perspectives and our values throughout
the Toyota Industries Group.
We also accept local staff of business bases outside
Japan as seconded staff to facilitate the international
exchange of human resources.

52

Relationship with Our Business Partners■ Spirit of Harmony

Reducing Environmental Impact throughEnvironmentally Preferable Purchasing
In order to create environmentally friendly products, we aim
to procure parts, materials and equipment from business
partners that give sufficient consideration to theenvironment. Based on our Environmentally Preferable
Purchasing Guidelines, we require our business partners toestablish an environmental management system.
Particularly for parts and raw materials, we make it a rule forbusiness partners to acquire external certification of theirenvironmental management systems such as ISO 14001.

Meeting on CSR Guidelines for Business Partners

53
Toyota Industries Report 2012

Relationship with Our Shareholders and Investors

Relationship with Our Local Communities

We aim to obtain an appropriate company valuation in stock markets through timely and appropriate information disclosure while promoting
good communications with shareholders and investors.

With a view toward engendering trust as a good corporate citizen, we actively undertake social contribution activities in countries
and regions where we do business.

Basic Perspective

Policy on Social Contribution Activities

Toyota Industries continually carries out timely andappropriate information disclosure for shareholders andinvestors. In this way, we raise management transparency
so that we obtain an appropriate company valuation instock markets. We provide not only information required
under disclosure laws and regulations but also informationthat fosters a better understanding of our management
policy and business activities. Also, we strive to promote
communications with shareholders and investors and feedback their comments to executives and relevant businessdivisions to reflect them in our business activities.

Three Pillars of Our Social Contribution Activities

While striving to achieve sustainable growth as a company,
we work to fulfill our role as a good corporate citizen andactively undertake social contribution activities in every
community where we do business in our efforts to help
realize a prosperous and healthy society.
To accomplish this, Toyota Industries proactively offers
cooperation and support with the objective of contributing
to local communities by providing human resources,
facilities, funds and know-how. Each of our employees
also strives to contribute to society through such means
as volunteer activities.
Meeting with institutional investors

Structure for Promoting Social Contribution
Activities

General Shareholders’ Meeting

Investor Relations Activities

Dividend Policy
Toyota Industries regards returning profits to shareholders
as one of the most important management policies.
Accordingly, we strive to continue paying dividends andmeet the expectations of shareholders upon taking into
consideration such factors as business results, demand
for funds and the payout ratio. For fiscal 2012, Toyota
Industries paid annual cash dividends per share of ¥50.0(interim cash dividend per share of ¥25.0 and year-end
cash dividend per share of ¥25.0).

The CSR Committee deliberates on policies of our social
contribution activities while the Social Contribution Group
within the General Administration Department at the Head
Office takes the initiative in carrying out activities.

■ Youth Development

With the aim of providing opportunities for youth to learn
the joy of monozukuri (manufacturing) and the meaningof work through actual experiences, we hold events
jointly with Youth Invention Clubs, host work experience
activities and conduct environmental education.
■ Environmental Protection/Nature Conservation
As a member of the local community, we carry out
a range of environment-related activities, including
promoting the use of wood thinned from forests inJapan and conserving forests through employee
volunteer programs, to contribute to the developmentof a sustainable society.
■ Social Welfare
To help develop local communities where everyone
enjoys an active life, we hold various social welfare events
to encourage exchange with persons with disabilities
and conduct joint fund-raising programs with ourconsolidated subsidiaries in Japan.

Activity Examples (in Japan)

Cash Dividends per Share (Annual)
For institutional investors and securities analysts, ourmanagement conducts briefing sessions to explain ourquarterly financial results. We also hold small and individual
meetings on an as-needed basis. During fiscal 2012, we
provided briefings primarily on such topics as the impactof the Great East Japan Earthquake as well as our Vision2020 and the Medium-Term Management Plan announcedin October 2011.
Additionally, the Toyota Industries Website features an
Investor Relations page for prompt information disclosure.
We use RSS feeds (in Japanese) to provide the latest
information in a timely manner.

Forest Conservation Activity(¥)

Support Activities for Children’s Home

60
50
40
30
20
10
0
(FY)

08

09

10

11

12

As part of its social contribution activities, the Toyota
Industries Team Leader Association* has been taking partin the forest conservation project of the Aichi Kaisho-noMori Center. Under the “TICO Ecocoro Tree Thinning
Activity,” members of the association have been carryingout tree thinning at Kaisho-no-Mori (Kaisho Forest) in
Seto-shi, Aichi Prefecture, with a plan to cover an area of
6,000 square meters by November 2012. In addition totree thinning, they also participate in a nature walk and astudy session to learn the necessity of tree thinning andimportance of cultivating a healthy forest, thereby gaining
a better understanding of nature conservation.

In fiscal 2012, Shine’s Co., Ltd., a subsidiary managing andoperating employee clubs, started providing support forchildren at Kaze-no-Iro children’s home in Higashiura-cho,
Chita-gun, Aichi Prefecture. On the day of Setsubun, whichmarks the beginning of spring, employees of Shine’s
delivered rolled sushi (food to bring good luck associatedwith Setsubun) and enjoyed a traditional bean-throwing
event with children to drive bad luck out and bring good luckin. At Christmas, employee volunteers brought Christmas
cakes to the children. Through these activities, we hope tocontribute to the sound and healthy growth of children.

Corporate Social Responsibility Relationship with Our Local Communities

Corporate Social Responsibility Relationship with Our Shareholders and Investors

We hold our annual general shareholders’ meeting
early to avoid the date on which many companies holdtheir respective shareholders’ meetings so that moreshareholders can attend.
We held our 133rd General Shareholders’ Meeting on
June 16, 2011, in which 320 shareholders participated.
For the purpose of fostering a better understanding of ourbusiness activities, we invited our shareholders for a plant
tour following the general shareholders’ meeting.

Toyota Industries is committed to building a close relationship with every local community in which we operate,placing particular emphasis on youth development, environmental protection/nature conservation and social welfare.

* An autonomous Company-wide organization consisting of approximately 1,700 young
leaders at manufacturing sites, the organization carries out cleanup and othervolunteer activities and promotes interchanges for self-development.

Setsubunbean-throwing
event
Briefing on financial results for fiscal 2012 by the president (May 8, 2012)54
Toyota Industries Report 2012

Tree thinning
activities

55
Toyota Industries Report 2012

Activity Examples (outside Japan)− Germany −− India −Support for Youth Sports Activities
Kirloskar Toyoda Textile Machinery Pvt. Ltd. (KTTM),
a subsidiary producing automotive parts and textile
machinery, supports youth sports activities by donating
trophies and medals to an annual sports event at a local
elementary school. KTTM also donated uniforms to a local
high school Kabaddi* team.
* National sport of India

Supporting Employee Participation in Local
Sports Activities
In an effort to strengthen its ties with the local community,
TD Deutsche Klimakompressor GmbH (TDDK), a subsidiary
producing car air-conditioning compressors, encourages
its employees to participate in local sports events bypaying participation fees and providing team uniforms.
A TDDK team that also included a Japanese employee
participated in a local table tennis tournament held inJanuary 2012. The event provided a good opportunity topromote international exchange through sports activities.

Toyota Industries Report
Local table tennis tournament participants

2 0 12

Awards ceremony at sports event

Corporate Social Responsibility Relationship with Our Local Communities− Sweden −− U.S.A. −Plant Tour

Charity Drive for Cancer Research

Toyota Material Handling Europe AB (TMHE), theEuropean headquarters for the materials handlingequipment business, hosted a plant tour in October 2011,
inviting employees’ families, friends, local residents andstudents. In addition to a plant tour, this event showcased
TMHE’s product lineup and provided a game-based
lecture on the Toyota Production System (TPS), thereby
providing an opportunity to gain a deeper understandingof TMHE’s business activities.

At Michigan Automotive Compressor, Inc. (MACI), a
subsidiary producing car air-conditioning compressors, ateam of employees joined the Relay for Life, an overnight
charity walk event to celebrate the courage to fight against
cancer and a passion for life among cancer patients andtheir families, friends and supporters. The team, which
also engages in fund-raising activities for cancer research,
donated annual proceeds of roughly US$3,000 from bakesales and auctions to the American Cancer Society.

Environmental Initiatives
An Interview with the Chief
Environmental Administrator
Vision for Environmental Activities
Structure to Implement
Environmental Management
Fifth Environmental Action Plan
Establishing a Low-Carbon Emission Society
Establishing a Recycling-Based Society
Reducing Environmental Risk andEstablishing a Society in Harmony with Nature
Environmental Management
Environmental Impact Flowand Environmental AccountingChildren taking a close look at lift trucks

56

Toyota Industries Report 2012

P

58−61
P 62

63
P 64−65
P 66−67
P 68
P

69
P 70−71
PP

72

MACI employees who joined the Relay for Life event

57

Toyota Industries Report 2012

Interview

An Interview with the Chief Environmental Administrator

Looking Back on Initiatives in Fiscal 2012

The nuclear power plant outage following themassive earthquake resulted in a tight power
supply in Japan. In the Chubu region where
Toyota Industries’ plants are located, power savings
also became an urgent task as the nuclear reactors at
the Hamaoka nuclear power plant were temporarily shut
down. How do you sum up the initiatives undertaken
during this period?
Kato: Toyota Industries consumes a considerable amountof energy in its business activities, and we naturally
regarded the task of saving power as a key responsibility.
In fiscal 2012, we defined a target of reducing our peakelectricity consumption by 5% year-on-year and madeCompany-wide efforts to save power. We needed to do
everything we could.
Firstly, we introduced weekend shifts along with othercompanies in the entire automobile industry. We thenimplemented a broad range of power-saving measures at
our plants and offices. All employees made concerted
efforts to successfully achieve targets and fulfill our
responsibility to society.

Q

Senior Managing Director* Masafumi Kato

* Amount of CO2 emitted to generate a unit of electricity

Future Energy Strategy

Q

What energy strategy is Toyota Industries
considering for the future?

Kato: In the future, we must manage energy wisely. Thatis, we must wisely generate, wisely use and wisely store
energy. Construction of a “smart factory,” which applies
this way of thinking to energy management at plants, issomething we should pursue. This entails building a

Examples of Our Power-Saving Efforts—Our Future Energy Management—

Aiming to Build a “Smart Factory”

Power Saving through the Introduction of
Weekend Shifts
During the summer of 2011, the entire auto industry inJapan worked Saturdays and Sundays and tookThursdays and Fridays off in order to save electricity
and help power companies reduce peak power load.

Power-Saving Efforts at Offices●Simultaneous use of air conditioners and electric fans
●Growing climbing plants to cover building walls●Application of heat-blocking measures to windows●Extension of the “Cool Biz” period (allowing
employees to dress lightly during summer)

Amount reduced to help
power companies lower peak
power load

(MWh)
100

Peak Power Consumption

Results
Achieved a 5% reduction in peak power consumption(vs FY2011 level)80

Maximum power consumption from July to September
Fiscal 2011 results
Fiscal 2012 target

Max. power consumption(MWh/day)60

Reductionof 80%

100

Co-generation facility (Kariya Plant, Aichi Prefecture)

80

20

60

* As of March 31, 2012

0FeatureA co-generation system simultaneously produces
electricity and heat from natural gas and other fuelsources. With the capability to effectively reuse thehot exhaust gas that is disposed of as waste heatin conventional power generation processes, cogeneration is considered as one promising option for
Toyota Industries’ future energy strategy.

Exterior of co-generation facility (Kariya Plant, Aichi Prefecture)

58
Toyota Industries Report 2012

40

Mon.

Tue.

Wed.

Thu.

Fri.

Sat.

Sun. (Day)Preparation for Power-Saving Request under
Emergency Supply-Demand Adjustment
Contract with CHUBU Electric Power Co., Inc.
●Created a prioritized list of equipment to shut downwhen a power-saving request is made from the powercompany in case of tight supply, and developed
standardized shutdown procedures.
●Conducted training on equipment shutdown using thestandardized procedures to ensure power is saved as
requested.

20

0
July

AugustSeptember

An Interview with the Chief Environmental Administrator

An Interview with the Chief Environmental Administrator

40

Environmental Initiatives

Environmental Initiatives

The shutting down of nuclear power plants following
the Great East Japan Earthquake on March 11, 2011
marked a significant turning point in Japan’s nationalenergy strategy. Reflecting these circumstances,energy management has become an increasingly
critical management issue for companies. We asked
Masafumi Kato, Senior Managing Director andchief environmental administrator*, about Toyota
Industries’ future approach to energy management.

Do you feel employees’ energy consciousness
has changed through these initiatives
undertaken during fiscal 2012?
Kato: Yes, it has. But from now on, we must do morethan just saving electricity. We need to redefine our energy
strategy itself. Before the earthquake, we had focused on
the kind of electrification beneficial in terms of both costs
and CO2 emissions factor for electricity*. After theearthquake, we began to reconsider a more flexible energy
management system that does not rely on a single energy
source.

Q

59
Toyota Industries Report 2012

mechanism to efficiently and alternately supply renewableenergy and energy produced by a highly efficient power
generation system in accordance with varying levels of
demand within a plant.

Q

What specific steps should be taken?

Kato: The first step is to wisely generate energy. At Toyota
Industries, this will involve the use of co-generation
systems, renewable energy sources and biomass. We will
begin with expanding the use of co-generation systems.
In our previous efforts to promote electrification, we
had a plan to eventually reduce the use of co-generation
systems, as these offered less advantage in lowering CO2
emissions. Following the turning point, however, we
conducted an assessment from a more comprehensive
viewpoint, covering such areas asless CO2 emissions, reduction ofpeak power consumption, energy
savings and disaster prevention(use as an emergency powersource). The results revealed thatco-generation systems do provide
sufficient advantages, and wehave made a drastic shift in ourenergy policy.
Co-generation systems alsooffer excellent energy efficiency
because we can use thesesystems when necessary andutilize their waste heat to produce
steam and hot water.

Nevertheless, I believe that the use of renewableenergy sources will be the key enabler for our approach towisely generating energy.
Keeping pace with the general trend toward theincreased use of renewable energy, we will introduce andexpand the use of solar and wind power as importantenergy sources while paying close attention totechnological developments.
We are also switching from fossil fuels to biomass
fuels. As part of this effort, we started using biocoke,a solid biomass fuel, in fiscal 2012. (See page 66 formore details.)
In addition, we are also keeping our eyes on thedevelopment of a new energy generated by using
waste heat.

Q

How will Toyota Industries wisely use theresulting energy?

Kato: Changes in energy supply sources will likely entail
more complex energy management at plants. For
instance, renewable energy is weather dependent,
whereby the supply amount fluctuates with changes inweather conditions. Also, an optimum supply source mayvary depending on where power is used within a plant.
Wisely using energy means to find an optimum
combination of energy sources and maximize theadvantages of each.
Currently, on-site supervisors determine how we use
energy based on the production status and other factors.
An increase in available energy options entails more
complex management, and manual control is limited inachieving reductions in CO2 emissions and costs. It isimperative that we set up a system to totally manage
energy use in each facility.
Wisely using energy is possible when we build asystem that can save energy by automatically selecting the
optimum energy source based on weather conditions,production status and other input data.

Q

To use electricity when necessary, it will be
important to wisely store electricity.

Kato: Yes. The word “storing” reminds us of electricity
storage technology. But fuel cells, which are capable ofgenerating electricity anywhere, can also be regarded as
an effective means to wisely storing energy. We have been
conducting a feasibility test of fuel-cell lift trucks with aneye to using them as another source of electricity.
By combining technologies to wisely generate, wisely
use and wisely store energy, we will work to build an
optimum energy management system and realize a“smart factory.”

Envisioned Image of “Smart Factory”

Light duct and light control system (Takahama Plant, Aichi Prefecture)

Fuel-cell lift truck

An Interview with the Chief Environmental Administrator

An Interview with the Chief Environmental Administrator

Wisely generate energy by selecting optimum source
depending on weather conditions

EnergyWisely store excess energy

60
Toyota Industries Report 2012

Energymanagementmaanagement

Co-generation

Renewable energy

Environmental Initiatives

Environmental Initiatives

Wisely use required energy

Biomass
Solar power generation and wind power
generation (Technical Learning Center,
Aichi Prefecture)

Solar power generation (Toyota Industries Global Learning
Center, Aichi Prefecture)

Solar power generation (TD Deutsche Klimakompressor GmbH*, Germany)* A subsidiary producing car air-conditioning compressors.

61
Toyota Industries Report 2012

Vision for Environmental Activities

Structure to Implement Environmental Management

Toyota Industries works with consolidated subsidiaries in and outside Japan to promote environmental activities on a global scale. We aim torealize a prosperous life in harmony with the natural environment through the establishment of a sustainable society.

Positioning environmental response as one of its most crucial management issues, Toyota Industries is enhancing its environmental
governance through the promotion of consolidated environmental management.

As one tenet under our Basic Philosophy, Toyota
Industries works to contribute to regional living conditions
and social prosperity and also strives to offer products andservices that are clean, safe and of high quality.
Accordingly, we established the Global Environmental
Commitment, a specific environmental action guideline, tobe shared and implemented throughout the Toyota
Industries Group.
We will dedicate Group-wide efforts to realizing aprosperous life in harmony with the natural environment bycarrying out activities aimed at “establishing a low-carbon
emission society,” “establishing a recycling-based society”
and “reducing environmental risk and establishing asociety in harmony with nature” as our way of “promoting
environmental management.”

Status of Our Environmental Management
SystemAiming at realizing a prosperous life in harmony
with the natural environment

Global Environmental Commitment• Change to more environmentally friendly chemicals• Minimize environmental risks• Effective use of resources at thedeveloping stage of products• Improvement of productivity interms of resources usage

Environmental risk
reduction
Society in harmony
with nature

Recycling-basedsocietyLow-carbon
emission society• Development
velopmen
men
en
ent
nt of
o p
products
pro
ro
oduct
duc
uct
u
ctts andcandtechnologies
chnologies inn purspu
pur
pursuiturssuitu ofo ssuperior
uper
per
p
e ior
or
energyergy efficiency• Achievement
hievement of minimum energy
consumption through the innovationsin production engineering

Environmental
Management• Ap
Approach
ApproaA proaroachroa
ac
ch towards
tow
owa
owar
o
w ds biodiversity
biio
iodi
odi
o
divers
di
div
•H
Hu
Human
uman
m resomamanresources,
so
ourc
urce
u
rce
es,
es,
s,
environmental
en
env
envi
ro
ronm
ron
on
nm
menta
nta
al awarenessa arenessaw
awareness•C
Cooperation
Coop
Coope
operation with global
society and local communitie
communities

Toyota Industries has positioned environmental response
as one of its most crucial management issues. To quickly
reflect top management’s decisions on business
operations, Toyota Industries has established and been
operating a Company-wide integrated environmental
management system (EMS), with the president at the top.
We have also assigned the positions of responsible
internal auditor and chief environmental administrator, two
key roles in our EMS, to executives, in an effort tostrengthen governance from an environmental perspective.
Environmental Management Structure

Notional Diagram of Global Environmental Commitment
Environmental Committee

PresidentInternal audit

Specialized committees

Responsible internal auditor

Working toward “CO2 Cancel”
CO2 emissions from production activities

CO2 Cancel“CO2 Cancel” is Toyota Industries’ original concept thataims to offset CO2 emissions from production activities atplants by reducing CO2 emissions via improved productefficiency and other means. We have adopted thisapproach as a new environmental target under the Fifth
Environmental Action Plan that covers the period fromfiscal 2012 to fiscal 2016.

Product Technology Subcommittee

Notional Diagram of “CO2 Cancel”

Divisions
Materials Handling Equipment
VehicleEngineCompressor
Electronics
Logistics
Textile Machinery

Company-Wide CO2Emission Reduction Conference

Division-Based
Promotion Committees

Environmental Conservation Organization by manufacturing plants(environmental risk management overseen by plant managers)

Scope of Group-Wide Environmental Management(As of March 31, 2012)

Japan

Steps to Accomplishing “CO2 Cancel”

Non-production companies
Japan: 24
Outside Japan: 92

2 Provide an estimate of when to accomplish “CO2 Cancel” based on

the results of preliminary calculations
3 Specify targets (including when to accomplish “CO2 Cancel”)
4 Promote activities to achieve these targets
5 Achieve these targets
6 Define higher targets (e.g., “CO2 Double Cancel”)

North America■ Non-consolidated: 10 plants■ Production companies: 14

Europe■ Production companies: 5
BT Products AB (Sweden)
Toyota Industrial Equipment, S.A. (France)
CESAB Carrelli Elevatori S.p.A. (Italy)
L.T.E. Lift Truck Equipment S.p.A. (Italy)
TD Deutsche Klimakompressor GmbH (Germany)■ Production companies: 8
Toyota Industrial Equipment Mfg., Inc. (U.S.A.)The Raymond Corporation (U.S.A.)
Raymond-Muscatine Inc. (U.S.A.)
North Vernon Industry Corp. (U.S.A.)
Indiana Hydraulic Equipment, Corp. (U.S.A.)
Michigan Automotive Compressor, Inc. (U.S.A.)TD Automotive Compressor Georgia, LLC (U.S.A.)
Cullman Casting Corporation (U.S.A.)

Asia■ Production companies: 4
TD Automotive Compressor Kunshan Co., Ltd. (China)
Toyota Industry (Kunshan) Co., Ltd. (China)
Kirloskar Toyoda Textile Machinery Pvt. Ltd. (India)
Zhejiang Aichi Industrial Machinery Co., Ltd. (China)

Aichi Corporation (Saitama)
TIBC Corporation (Aichi)
Altex Co., Ltd. (Shizuoka)
IZUMI MACHINE MFG. CO., LTD. (Aichi)
Iwama Loom Works, Ltd. (Aichi)
Tokaiseiki Co., Ltd. (Shizuoka)
Tokyu Co., Ltd. (Aichi)
Nagao Kogyo Co., Ltd. (Aichi)
Miduho Industry Co., Ltd. (Aichi)
Nishina Industrial Co., Ltd. (Nagano)
HANDA Casting Company (Aichi)
Unica Co., Ltd. (Aichi)
Hara Corporation (Gifu)
Mino Tokyu Co., Ltd. (Gifu)

Structure to Implement Environmental Management

Vision for Environmental Activities

Reduction of CO2 emissions via improved product efficiency= Total reduction in CO2 emissions attained by major products
which are manufactured at Toyota Industries’ plants

product

Toyota Industries Report 2012

As one task under the Global Environmental Commitment,
our basic policy concerning environmental activities, wehave been undertaking efforts to foster the development ofenvironmental specialists who can think and act on theirown for the environment. In doing so, we have clarified theenvironment-related knowledge and skills required foreach job category and rank, and accordingly, built anenvironmental education program.
We designate every June as Environment Month andengage in various activities, such as holding environmental
events and running articles on environment-related topics
in our in-house newsletters to raise environmental
awareness among employees as well as their families.

CO2 emissions from production activities= Total CO2 emissions from Toyota Industries’ plants

1 Establish parameters to calculate CO2 reduction volume for each62

Human Resources Development

Production Environment Subcommittee

Secretariat
Head Office
Corporate Planning
R&D
Purchasing
1UALITY !SSURANCE
Human Resources'ENERAL !DMINISTRATION

Toyota Industries implements annual internal
environmental audits as well as external audits carried out
by an independent third-party institute.
The external audit conducted in fiscal 2012 revealed
seven non-conformances. We have already completed
measures to correct them and disseminated the relevant
information to other plants to prevent recurrence.
As for internal audits, we were able to reduce theaverage number of non-conformances per department
from 0.86 in fiscal 2011 to 0.77. To improve the quality ofinternal audits, we are undertaking efforts to develop thecapabilities of auditors by conducting education programs
such as introductory courses for environmental
management and environmental audits. As a result,the number of internal auditors increased to 110 as ofMarch 31, 2012.

Environmental Initiatives

Environmental Initiatives[Future Activities]
The shutting down of nuclear power plants is likely to
induce a change in the CO2 emission factor for electricity
and a considerable fluctuation in production volume inJapan as we shift production operations to overseas
bases. From fiscal 2013 onward, we will clarify our targetof when to accomplish “CO2 Cancel” based on thesechanges and promote activities accordingly.

s4EAM LEADER
sSupervising auditors
s!UDITORS

Chief environmental administrator

Reduction of CO2 emissions via improved product efficiency[Establishment of Original Standards]
In fiscal 2012, we developed an original approach to apply
to products with different features to calculate CO2
reduction volume for each product.

Environmental Audits

63
Toyota Industries Report 2012

Fifth Environmental Action Plan
Under the Fifth Environmental Action Plan (fiscal 2012 – fiscal 2016), we will strive to upgrade our environmental management andactively promote initiatives to achieve fiscal 2013 targets.

Reducing Environmental Risk and Establishing a Society in Harmony with Nature
Segments

In fiscal 2012, which marked the first year of our
five-year plan, we were able to exceed targets forfiscal 2013.
In fiscal 2013, we will start defining even higher targets
for fiscal 2016 with a view toward further reducing
environmental impact while working to attain the targets
for fiscal 2013.

Progress in the Fifth Environmental Action Plan
With an eye to realizing a prosperous life in harmony with
the natural environment through the establishmentof a sustainable society, we have devised the Fifth
Environmental Action Plan for the period from fiscal 2012
to fiscal 2016, promoting activities according to the plan.

Action Policies/Specific Actions

Products

Reduce CO2 emissions by 10%*1 from major
products to be developed during the period
covered by the Fifth Plan
In the Automobile-Related Business, promoteelectrification and develop technologies andproducts that will contribute to reduction of CO2
emissions•Develop technologies to respond toelectrification of vehicles•Improve energy efficiency of car air conditioners•Develop technologies to enable weight
reduction

Subject

Scope

FY2013 Targets
Control Items

Base Year (FY)

Targets

FY2012 Achievements
Achievements

1991

-10%
(FY09-13 average)

1.15

Segments

-17%

1.27

General
1.43

1.02

1.11

1.05

1.22

1991

-15%

-37%

2007

1.06

1.24

2006

Action Policies/Specific Actions

Products

Implement initiatives to promote 3R (reduce,reuse and recycle) design for effective resource
utilization•Reduce use of resources through weight andsize reductions

Enhance resource productivity•Reduce use of timber-derived packaging
materials
Production •Reduce the volume of discarded materials bytaking action at the source, such as improving
yields and other measures•Promote internal reuse

64
Toyota Industries Report 2012

Subject

Scope

Control Items

Base Year (FY)

Targets

FY2012 Achievements
Achievements

Page•Developed resource-saving
DC-DC converter*2

Packagingmaterial volume

Nonconsolidated

Eco-efficiency•Developed energy-efficient, resourcesaving electronic shedding device for
air-jet looms
2007

Nonconsolidated
Consolidated
subsidiaries

4.10

1.13

1.61

1.12

1.20

1.16

2.54

P68

In JapanWastegeneration
volume

1.06

Eco-efficiency

2006

FY2012 Achievements
Achievements

Page

*2

•Held training seminars for business
partners for creating substances ofconcern databaseP69

VOC*7 emission

Nonconsolidated(automobile
body)

Emissionvolume per unitof sales–24 (g/m2)

Base Year (FY)

Targets

25 (g/m2)

Action Policies/Specific Actions

FY2013 Targets
Subject

Scope

Control Items

FY2012 Achievements
Achievements

Page

Reinforce CO2 reduction activities for “CO2
Cancel”•Further reduce CO2 emitted from production
activities in plants•Reduce CO2 emissions by achieving
improved efficiency in newly developed
products
Aim to cancel out CO2 emissions of Toyota
Industries through these two activities•Duly considered the definition of “CO2
Cancel” and established the parameters
to calculate CO2 reduction volume

P62

Augment and promote consolidated
environmental management•Build a global environmental management
system and promote related activities to:– Comply with environment-related laws
and reduce environmental risks in eachcountry– Achieve the highest-level performance ineach country•Held meeting for consolidated
subsidiaries in Japan•Disseminated information regarding
plant-related laws and regulations•Confirmed compliance through checksheets

P63

Enhance and promote environmental
education and enlightenment activities•Develop environmental specialists to leadinternal environment-related activities*8•Held lecture on the environment•Introduced internal eco-point system

Improve eco-conscious brand image•Reinforce environmental activities according
to the contents and results of Survey ofEnvironmental Oriented Management Index
to pursue higher brand image•Won the best award at the Aichi Green
Curtain Contest for wall greening
activities•Introduced super environmentallyfriendly products on website

Augment activities related to protection of
biodiversity•Identify the impact of business activities
on biodiversity and reinforce initiatives bydefining specific goals•Promoted plan for establishing abiotope

Promote sustainable plant activities•Build a plant environment in harmony withnature by promoting energy reduction andenergy conservation through innovative
production engineering, by reducing energy
loss and by using renewable energy andother means•Formulated mid- to long-term energy
strategies

P70/71*1: Target products Toyota Industries develops and produces. The CO2 reduction volume is calculated based on the method Toyota Industries determined using FY2011 levels as
the baseline.
*2: Details undisclosed due to confidential information and other reasons*3: As of March 31, 2012; survey by Toyota Industries*4: Greenhouse gases other than CO2, including methane (CH4), dinitrogen monoxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulfur hexafluoride (SF6)*5: Eco-efficiency = Production efficiency in subject year / Production efficiency in base year
Production efficiency = Production indicator (Net sales or production volume, etc.) / Environmental impact of production activities*6: Substances of Very High Concern*7: Volatile Organic Compounds*8: Specific targets are set separately and progress achieved is disclosed via the Company Website or Toyota Industries Report and other media.

Fifth Environmental Action Plan

Fifth Environmental Action Plan

Establishing a Recycling-Based Society
FY2013 Targets

Targets

Environmental Initiatives

Environmental Initiatives

1.32

Base Year (FY)

Promoting Environmental Management

P66/67

NonPromote energy reduction and energy
Total emissions
consolidated
conservation through innovative production
technologies
Global•Promote visualization of energy loss
CO2 emissions•Further promote Company-wide reduction•EnergyNonactivities and accelerate thorough, horizontal
derived CO2
consolidated
Production deployment•5 gases*4•Develop innovative technologies to reduce CO2
Consolidated Eco-efficiency*5•CO2 fromemissionssubsidiaries inlogistics
Japan
Promoting measures to curb global warming
Consolidated•Promote horizontal deployment of technologies
subsidiaries
to curb global warming
outside Japan
Reduce CO2 emissions through green logistics
Total emissions•Promote modal shift
NonCO2 from
Logistics •Reduce the number of transportation vehicles
logistics
consolidated
by promoting mixed transport among businessEco-efficiency
divisionsControl Items•Developed diesel engines with low
emissions•Expand the use of a preliminary review
system•Reduce risks related to wastewater•Enhance risk communication with relevantorganizations and local residents<Textile Machinery Business>•Developed energy-efficient, resourcesaving electronic shedding device for
air-jet looms

In the Textile Machinery Business, develop
technologies and products that will contribute to
reduction of CO2 emissions•Reduce energy loss

Scope

Manage chemical substances contained in
products•Investigate chemical substances containedin products and manage switching over of
SVHC*6 and other substances of concern toother substances
Further reduce emissions of substances ofconcern•Reduce emissions of substances of concern
mainly from painting processes<Materials Handling Equipment Business>•Developed energy-efficient electric lifttruck

In the Materials Handling Equipment Business,develop technologies and products that willcontribute to reduction of CO2 emissions•Reduce energy loss in electric-powered lift
trucksSegments

Products

Page<Automobile-Related Business>•Developed highly efficient variabledisplacement compressor•Developed highly efficient electriccompressor•Developed the world’s largest*3
panoramic roof made of plastic glazing*2

FY2013 Targets
Subject

Reduce emissions to improve air quality inurban areas in all countries and regions•Develop engines that meet future regulations

Production Minimize environmental risks

Establishing a Low-Carbon Emission Society
Segments

Action Policies/Specific Actions

65
Toyota Industries Report 2012

Establishing a Low-Carbon Emission Society
We position the establishment of a low-carbon emission society as one of our most crucial environmental tasks. We have been working to
reduce CO2 emissions by improving product efficiency through technological innovation, encouraging energy saving and less consumption ofenergy during production activities and promoting green logistics.

Internal Award Program to Recognize
Environmental Improvement Activities
In fiscal 2011, Toyota Industries established an internalaward program to recognize excellent environmental
improvement activities undertaken at production sites
and offices. The program’s purposes are to share bestpractices to raise the level of environment-related
activities throughout the Company.
In fiscal 2012, with the intent to further motivate
employees to take action, we reviewed the system toassess the process of activities from a broader
perspective. We received applications from eachbusiness division such as measures to reduce CO2
emissions and save power. Four projects were selected
to receive either a “Best Practice Award” or “Excellent
Practice Award.”
We will continue to refine our award program toencourage more environmental improvement activities
and contribute to the generation of excellent ideas.

Reduction of CO2 Emissions through Introductionof Biocoke* Carbon neutrality refers to the concept that the amount of CO2 generated byincinerating a plant is offset by the amount of CO2 absorbed by the plant throughphotosynthesis in the process of its growth, thus causing no increase/decrease in theamount of CO2 in the atmosphere.

In a vehicle painting line, we generate a downward airflow
at a constant speed to prevent unnecessary dispersion of
the sprayed paint.
We worked to reduce the amount of airflow in order toreduce energy consumption.
We first moved the spray nozzles closer to the vehicle
body and adjusted the discharge pressure and amount to
reduce dispersion. We then set the amount of airflow at alevel sufficient to prevent the paint from being sprayed on
the next vehicle body on the line, thereby reducing theamount of airflow by about 60%.
Consequently, we successfully reduced annual CO2
emissions by approximately 270 tons.

Paint spreading toa large area

New Electronic Shedding Device with Excellent
Energy-Saving Performance
An air-jet loom electronic shedding device creates avertical space between the raised and lowered warp
threads through which to insert weft yarn. It allows theweaving of complex-patterned fabrics by controlling thetiming of the raising or lowering of warp threads.
In May 2011, Toyota Industries developed a newelectronic shedding device that offers an excellent energysaving feature while maintaining the same level of weaving
performance as conventional electronic shedding devices.
This new device is equipped with an improved
decelerator and motor, which improves performance
during high-speed operation. At the same time, byrecovering energy generated in the deceleration process,power consumption of the new device has been reducedby more than 10%.

Direction of line flowMore exhaust air (downflow)

Applying a strong downflow to prevent the paint frombeing sprayed on the next vehicle body

JAT710 air-jet loom equipped with the optionally available electronic shedding device

Initiatives for Establishment of a Low-Carbon Emission Society
CO2 Emissions (Non-consolidated/Consolidated subsidiaries in andoutside Japan)
Non-consolidated

Consolidated subsidiaries in Japan

Eco-efficiency (non-consolidated)

Consolidated subsidiaries outside Japan

Eco-efficiency (consolidated)
Eco-efficiency
1.6

Paint spreading to a smaller area,
not settling on the next vehicle

1.43
Direction of line flow

1.34

On-site assessment

1.4

1.27

1.17

Production of Biocoke
1.00

Total
emissions
(kt)

1.10
1.00

800

Wood chips

1.0

1.06
762

734
679

666

Less exhaust air (downflow)

596
Heat andcompress

Tea grounds

600

Applying the minimum required amount of downflow andstill being able to maintain the level of quality

400

Biocoke

305

200

Good

0
(FY) 91

66
Toyota Industries Report 2012

Awards ceremony

1.2

1.18

Establishing a Low-Carbon Emission Society

Establishing a Low-Carbon Emission Society

1.24

Good

Environmental Initiatives

Environmental Initiatives

The Engine Division accounts for 37% of Toyota Industries’
total CO2 emissions generated, with its main emission
source being the incineration of coal coke in the cast ironmelting process.
In order to reduce CO2 emitted from the melting
process, the Engine Division rolled out an initiative toreplace coal coke with biocoke, which has a zero CO2emissions factor.
In fiscal 2012, which was the first year of the initiative,
we aimed to replace 4% of coal coke with biocoke and to
reduce annual CO2 emissions by 500 tons.
Biocoke is a solid biofuel produced by heating andcompressing biomass such as wood chips from thinned
trees or tea grounds thrown away by beverage
manufacturers. It is an excellent fuel substitute because of
its carbon neutrality*, but provides less heating power forthe melting process and a lower amount of carbon neededin the resulting molten metal compared with coal coke,making it difficult to maintain the quality of our products.
To compensate for the insufficient heating power, weincreased the amount of biocoke used in the melting
process. To solve the problem of an insufficient amount ofcarbon, we added petroleum coke, which contains
roughly the same amount of carbon as coal coke, anddetermined the optimal mix through a number ofoperational tests.
These efforts resulted in a reduction in annual CO2
emissions by 650 tons, which exceeded the target.

Reduced Airflow in Vehicle Painting Line to
Reduce Energy Consumption

06

09

10

11

12

67
Toyota Industries Report 2012

Establishing a Recycling-Based Society

Reducing Environmental Risk andEstablishing a Society in Harmony with NatureWith a view to contributing to the establishment of a recycling-based society, we have been reducing our resource consumption
through the promotion of 3R (reduce, reuse and recycle) design and improvement of resource productivity.

We have been striving to reduce emissions of substances of concern by implementing thorough management of chemical
substances in product development and production activities.

Recovery and Reuse of Steam Drainage Water*1
from Washing Equipment
Toyota Material Handling Japan (TMHJ), responsible for
Toyota Industries’ Materials Handling Equipment Business,
reduced the amount of water used in the pre-paintwashing process.
Previously, steam was used to heat washing water
to maintain its temperature at a constant level. Drainage
water liquefied from used steam had been disposed ofas wastewater. However, the results of a water quality
analysis revealed that this drainage water retained
the level of quality suitable for use as washing water.
TMHJ consequently decided to recover and reuse it aswashing water.
This helped TMHJ reduce annual consumption ofwater provided by public water supply by about 4,000 m3.
As hot recycled water of approximately 80ºC is added to
the washing water, less steam is required for the heatingprocess, leading to a reduction in annual CO2 emissions
by about 50 tons.

Reduction of Waste by HANDA Casting Company
HANDA Casting Company, a consolidated subsidiary inJapan that produces foundry parts for lift trucks, reduced
the amount of waste generated in the shot blastingprocess used to apply surface treatment tocounterweights*2.
Used blasting sand generated from this processcontains pulverized steel shots (pieces of iron) or ironpowder. Because of these contents, it was not suitable forrecycling.
In fiscal 2011, through a joint project with amanufacturer, HANDA Casting succeeded in separatingthese impurities from used blasting sand and reduced theannual amount of waste by approximately 480 tons.
*2: A weight installed in the rear of a lift truck to maintain balance with the cargo load

Vibration-sifter
Used blasting sand

*1: Hot water liquefied from steam, which occurs when heat is removed from steam in
the heating process
First magnetic separator(1,000 gauss)

Greater Resource Efficiency for
DC-DC Converters

Second magnetic
separator(3,000 gauss)

Before improvement
Iron powder

Trichloroethylene Readings
Plant

FY2008FY2009FY2010FY2011FY2012

Kariya Plant

0.99

0.67

0.67

0.41

0.38

Kyowa Plant

0.79

0.72

0.34

0.41

0.48

Weighted average concentration in groundwater (mg/l)

Large iron pieces

Sand for reuse

Spray coating
methodIron (for sale)

Finished products #OATING ALSO APPLIED TO
unnecessary portions
Workpiece s .EED TO CLEAN JIGS

Roll coating
methodFinished productStudy Sessions for Business Partners on
Management of Chemical Substances

Consolidated subsidiaries in Japan
Eco-efficiency (Japan consolidated)

Waste generation volume (kt)

1.57

300

1.08

1.00
1.00

1.16

1.22

185

0
(FY)

06

09

Good

1.6
1.20

1.4
1.2

154
5

168

171

10

11

12

100
Good

1.8

1.0

230

200

1.56

1.61

s 3UFFICIENT COATING
only applied toWorkpiece necessary portions
s #LEANING JIGS NOT
necessary

Toyota Industries uses a chemical substance management
system to accumulate data on materials used andchemical substances contained in all of its products for the
purpose of confirming applicability when new regulations
come into effect in a country or region.
An appropriate applicability check requires compilationof accurate data. Since fiscal 2007, we have been carryingout activities to help our business partners that create theirown databases to understand the importance of chemical
substances management and holding study sessions on
how to compile accurate data.

Status of Compliance with Environmental Laws
In fiscal 2012, there was one instance in which effluentsfrom the plant exceeded standard values at one subsidiary
within the Toyota Industries Group. This incident has beenreported to the relevant authorities, and corrective
measures have already been completed by the subsidiaryconcerned. Subsequent confirmations have also been
made to ensure that there are no recurrences.
We will step up our efforts to prevent environmental
risks by sharing information on environment-related
incidents throughout the Toyota Industries Group,
including their causes and countermeasures taken. We will
also continue to augment Group-wide efforts to minimize
environmental impact by conducting contingency training
for emergency situations and other proactive measures.

Reducing Environmental Risk and Establishing a Society in Harmony with Nature

Waste Generation Volume(Non-consolidated/Consolidated subsidiaries in Japan)

Eco-efficiency
co-efficiency

Establishing a Recycling-Based Society

Initiatives for Establishinga Recycling-Based Society

1.79

Toyota Industries Report 2012

Toyota Industries carries out surveys and purification ofsoil and groundwater contaminated from the past use oftrichloroethylene. We regularly report the survey results tolocal government authorities and provide information at
local community meetings. As measures to prevent
pollution from substances covered by the Soil
Contamination Countermeasures Law as well as fromgrease and oils, we have drilled observation wells at allplants to conduct regular checks.

After improvement

Mechanism to separate impurities from used blasting sandEco-efficiency (non-consolidated)

68

Soil and Groundwater Pollution
Countermeasures

Small iron pieces

Non-consolidated

DC-DC converter fitted in the Aqua

We apply resin coating to pistons, a car air-conditioning
compressor part, to ensure smooth piston movement andairtightness.
The conventional method, which sprays resin on theentire piston, causes resin to spread and settle on
unnecessary portions of the piston and on jigs, using moreresin and energy than necessary.
In 1998, we started introducing a roll coating methodthat uses rollers to transfer resin onto a piston surface.
This method only applies coating where necessary,
resulting in the reduction of the required amount of resin
and thus the usage of chemical substances.
By fiscal 2012, we adopted the roll coating method in
all our 14 coating lines. Compared with the conventional
spraying method, annual VOC (volatile organic compound)emissions were reduced by about 249 tons and annual
emissions of PRTR (Pollutant Release and Transfer
Register) law designated substances decreased byapproximately 42 tons.
A reduction in air consumption and elimination ofdrying furnaces also reduced annual CO2 emissions by
about 4,600 tons.

These activities
have proven effectivein raising awarenessfor the proper
management of
Study session for business partners
chemical substancesamong business partners throughout our supply chain andbeen contributing to the establishment of a safe society
not affected by any harmful substances.

Environmental Initiatives

Environmental Initiatives

A DC-DC converter is primarily used on hybrid vehicles(HV) to downconvert the high voltage used for the drive
motor to a level suitable for operating lights, wipers, horns
and other auxiliary devices.
In December 2011, we developed an approximately
44% lighter DC-DC converter with smaller components
and fewer parts compared with our existing DC-DC
converters. A fewer number of fastening screws resulted inan easier-to-dismantle structure, contributing to higher
recycling efficiency. The new DC-DC converter is fitted in
the Aqua (Prius c in North America), a hybrid vehicle byToyota Motor Corporation.

Environmental Improvement through Adoptionof a New Piston Coating Method

69
Toyota Industries Report 2012

Environmental Management
Eco Character

Toyota Industries promotes the development of human resources capable of taking their own initiative regarding the environment in order tocarry out activities specified under the Fifth Environmental Action Plan and achieve its targets.

ECOROP“ECOROP” is our corporate eco character
selected from 112 character designs
solicited from employees. A water droplet
and leaves symbolize the environment,
and the word “ECO” is positioned on its
forehead to resemble our corporate logo.

Activities in Fiscal 2012 (Examples)

Wall Greening Activity Received the Best Awardin Aichi Green Curtain Contest

Lecture on the Environment“Make Electricity” event (Nagakusa Plant, Aichi Prefecture)

Mr. Ukyo Katayama

Toyota Industries Report 2012

Kizuki-no-Ki made up of participants’ declarations

Voice of Program Organizer
We have rolled out this program to encourage employees
and their families to take environment-conscious actions witha sense of enjoyment. We will continue to plan events andactivities in which they can participate easily to help each
person increase his or her environmental awareness.

A green curtain covering
a wall of the officebuilding

Water sprinkling activities to lower surface temperature(Kariya Plant, Aichi Prefecture)

TIEM Received Environmental Award
Toyota Industrial Equipment Mfg., Inc. (TIEM), a U.S.based subsidiary producing lift trucks, was awarded
The 2011 Indiana Governor’s Award for Environmental
Excellence.
This award is given to companies carrying out
business activities and decision-making based on
excellent environmental strategies. TIEM, recognized for its
numerous achievements through five years of continuous
environmental improvement activities, received this award
for the third time.

Results of TIEM’s Five-Year Environmental
Improvement Activities
Achievements included reducing VOC emissions by 55%,
air pollutant emissions by 34%, industrial waste generation
by 62% and water consumption by 24%.

Employees planting morning glory seedlings

Introduction of Internal Eco-Point System
To raise environmental awareness among employees andtheir families, Toyota Industries introduced an internal
eco-point system in April 2011. Under the slogan “Let’slead a more ecological lifestyle,” the program gives ecopoints to employees and their families who make
improvement proposals for protecting the environment or
participate in lectures and other environmental events.
These points can be exchanged for eco-friendly products.

Program organizers in the Plant Engineering & Environment Department
handing out leaflets to promote the eco-point system

Awards ceremony

Environmental Management

Environmental Management

70

In addition to Company-wide events, individual plants
held various events, and many employees have joined theeco-point program.
According to the results of a questionnaire on thisprogram, approximately 85% of Toyota Industries’
employees responded that they have become moreenvironmentally aware through these activities.
We will carry out continuous activities to maintainemployees’ interest in environmental issues andencourage them to take environment-conscious actions
both in the workplace and at home.
We will also work to refine the program to contribute to
the conservation of the environment in surrounding areas.

Environmental Initiatives

Environmental Initiatives

Toyota Industries
organizes anenvironmental lecture
every year for raising
the environmental
awareness of its
employees.
WorkshopIn fiscal 2012, we
invited Mr. Ukyo Katayama, formerly an F1 driver and now
an alpinist, as a lecturer, and Professor Noriyasu Kunori ofToyama Prefectural University as an interviewer to talkabout what everyone can do now for the environment.
About 170 employees attended the lecture.
Mr. Katayama spoke about matters such as whatmade him think about environmental issues and how hedecided to take personal action in his everyday life.
A workshop was held at the end of the lecture, andeach participant wrote down on paper a personaldeclaration of one environmentally friendly action each will
take. We pasted these sheets together to create theshape of a tree and named it Kizuki-no-Ki (a tree of small
realizations). Some participants declared that they would
strive for eco-driving and others decided to be a rolemodel for their children. Through this workshop, we
realized thateveryone’s small
actions will become a
big force in protecting
the environment.

For the purpose of saving electricity during the summer
and raising the environmental awareness of employees,
the Kariya Plant (Aichi Prefecture) carried out a “wallgreening” project to grow a shady “green” curtain, sevenmeters high and 90 meters wide, to cover a wall of its
office building.
In June 2011, about 200 employees participated in an
event to plant morning glory seedlings. We devised ways
to continuously gain employees’ attention, including
posting records of the morning glories’ growth on the
Intranet, thereby successfully raising their environmental
awareness. The curtain of morning glories effectively
reduced the amount of electricity used by air conditioners
by about 10%.
This project was highly praised by externalorganizations and received the Best Award in the Factory
Category in the Aichi Green Curtain Contest sponsored by
Aichi Prefecture.
We will continue this wall greening project, extending
activities to other plants.

71
Toyota Industries Report 2012

Environmental Impact Flow andEnvironmental Accounting
In this section, we provide an overall picture of environmental impact resulting from our global business activities andreport the results of environmental accounting (environmental conservation cost, environmental conservation benefits andeconomic benefits of environmental conservation initiatives).

Environmental Impact Flow
Environmental Impact Flow

INPUT

■Energy [consolidated]

Total consumption ........................... 9,800 TJ*1
Electricity ...................................980,640 MWh
City gas....................................... 77,977 km3N
LPG ......................................................4,105 t
Petroleum products.............................. 5,178 kl
Coal products ........................................6,346 t
LNG ......................................................5,720 t

R&D/Design

OUTPUT■Into the Air[consolidated]

Procurement

Production*1: Terajoule is a unit used to measure heat.
1 TJ = 1012 joules

Raw material consumption .................576,355 t■Raw Materials[consolidated]■Water [consolidated] Water consumption...........................6,035 km3■Chemical Substances PRTR law*2 designated substances.........1,726 t[Japan consolidated] *2: Short for Pollutant Release and Transfer Register, theTransportation/
Sales■Chemical Substances[Japan consolidated]■Waste [consolidated]■Into Waterways[Japan consolidated]

CO2............................................724,338 t-CO2
Greenhouse gases other than CO2 ...3,329 t-CO2
CO2 from logistics .........................34,028 t-CO2
SOx (Sulfur oxides)................................. 692 kg
NOx (Nitrogen oxides)................................190 t
VOC (Volatile organic compounds)...........1,698 t
Emissions/transfers of PRTR law
designated substances...........................781 t
Waste generation...............................298,057 t
Water pollutants..........................................29 t
Discharge of treated wastewater........2,510 km3

Usage

PRTR law is a scheme whereby businesses measure therelease and transfer of PRTR-designated pollutants andreport their performance to the government. The
government then compiles this data and releases it to
the public.

Toyota Industries Report

Recovery/
Recycling2 0 12

Environmental Accounting and On-Site
Verificationn Fiscal 2012 Environmental Accounting*3

Scope of data collection: Toyota Industries Corporation
		
TIBC Corporation
Data collection period: April 1, 2011 – March 31, 2012
*3: Environmental accounting data is collected in compliance with the Ministry of theEnvironment’s Environmental Accounting Guidelines 2005 Edition.

Environmental Conservation Cost
Category

Environmental Initiatives
Environmental Impact Flow and Environmental Accounting

72

Pollution prevention costs
Business Global environmental
area costs conservation costs
Resource recycling costs
Upstream/downstream costs
Management costs
Research and development costs
Social contribution activity costs
Environmental remediation costs
Total

FY2012
Investment Expenses
257
1,028
345

3,264

32
721
−
49
263
1,231
3
1,260
−
8
3
9
903
7,570
8,473

(Millions of yen)

FY2011
Investment Expenses
246
1,371
233

2,872

20
562
6
4
2
1,130
3
152
4
13
−
9
514
6,113
6,627

Environmental Conservation Benefits
Environmental Impact
CO2
Generation of waste products
Water

Comparison with Previous Fiscal Year7,735 t decrease
2,004 t increase
95,934 m3 decrease

Economic Benefits of Environmental Conservation Initiatives(Millions of yen)

Item
Revenue
Cost reduction
Total

Toyota Industries Report 2012

Details
Returns from sale of recycled waste products
Energy cost reductions
Cost reduction by resource savings (including
reductions in amount of water use andwastewater treatment costs)

Amount
4,656
49
(19)
4,686

n On-Site Verification

Every year, Toyota Industries Head Office’s Plant
Engineering & Environment Department takes the initiativein conducting on-site verification of the accuracy andconsistency of environmental data included in the Toyota
Industries Report. The results for fiscal 2012 are as
follows.
[On-Site Verification Sites]
Obu Plant:	Production of car air-conditioning
compressor parts
Morioka Works:
Production of automotive parts
Tokaiseiki Co., Ltd.:	Production of parts for car
air-conditioning compressors
and engines[Items to be Verified]
1. Adequacy of the scope of data collection; validity ofdata collection and calculation methods; validity ofinternal verification
2. Trustworthiness and accuracy of collected/calculated
data as well as data reported to the Head Office;accuracy of methods reported to the Head Office[Results]
1. The verified sites retained original data (evidence) for all
statistics, which were confirmed valid as were thescope and method of data collection.
2. All discrepancies found during verification have beencorrected after respective causes have been identified.
3. Considerations of improvements will be made for datacollected using complex collection methods that may
result in calculation errors.

Financial Section / Corporate Informationn Financial Section
Consolidated Eleven-Year Summary
Consolidated Balance Sheets
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets
Consolidated Statements of Cash Flows74−75
P 76−77
P 78
P 79
P 80−81
P 82
Pn Corporate Information
Board of Directors, Corporate Auditors andManaging Officers
Major Consolidated Subsidiaries
Major Production Bases
Investor Information

83
P 84−85
P 86
P 87
P

Note:
For details on the consolidated financial statements,
please refer to the separate publication, which is also
posted on the following Website:
www.toyota-industries.com

73

Toyota Industries Report 2012

Consolidated Eleven-Year Summary

Toyota Industries Corporation
Years ended March 31
Millions of yen

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

For The YearNet sales¥ 1,543,352¥ 1,479,839¥ 1,377,769¥ 1,584,252¥ 2,000,536¥ 1,878,398¥ 1,505,955¥ 1,241,538¥ 1,164,378¥ 1,069,218¥ 980,163

Operating income (loss)

70,092

68,79822,002(6,621)

96,853

89,95464,04053,12052,63152,477

46,330Ordinary income

80,86673,911

31,756

14,343

126,488

108,484

80,63570,91258,97051,37547,865

Net income (loss)
Investment in tangible assets

58,594¥58,40447,205¥38,254¥(26,273)(32,767)

80,46059,46847,07743,357

26,963¥ 104,495¥ 104,205¥ 129,023¥ 130,121¥ 111,321

33,623¥65,651

21,933¥69,60727,311¥—

Depreciation

59,83062,372

73,23887,21983,74474,44964,423

51,27749,26445,939—Research and development expenses

32,07027,78826,826

33,64636,75034,54831,16630,051

29,562

29,70529,985Per share of common stock (yen):
Net income (loss) per share—basic
Net income per share—diluted¥

188.02¥151.51¥(84.33)¥(105.16)¥257.50¥189.88¥146.16¥135.09¥108.04

¥

70.19

¥

87.28

—

—

—

—

257.43189.66146.02135.03101.97

62.90

78.26

Total net assets per share

3,662.26

3,300.17

3,390.02

2,987.16

4,483.32

5,612.11

5,044.45

3,504.80

3,199.69

2,522.52

2,809.54

Cash dividends per share

50.00

50.00

30.00

40.00

60.00

50.00

38.00

32.00

24.00

22.00

19.00

Total assets¥ 2,656,984¥ 2,481,452¥ 2,589,246¥ 2,327,432¥ 2,965,585¥ 3,585,857¥ 3,245,341¥ 2,326,824¥ 2,011,995¥ 1,650,391¥ 1,770,401

Total net assets

1,197,841

1,075,939

1,104,929

977,670

1,453,996

1,810,483

1,611,227

1,115,747

1,016,763

738,867

878,812

Common stock

80,46280,46280,46280,46280,46280,46280,46280,46280,462

68,04668,021

Number of shares outstanding (excluding treasury stock) (thousands)

311,687

311,564

311,570

311,577

311,589

312,075

319,320

318,237

317,666

292,777

312,796¥ 101,718¥ 153,661¥ 203,452

65,768¥ 188,805¥ 177,467¥ 131,784¥ 100,095

92,406¥ 103,183(9,403)(187,574)(36,855)(114,217)(138,789)(164,446)(205,013)(128,230)(92,667)(95,120)

At Year-End

Cash FlowsNet cash provided by operating activities
Net cash used in investing activities

¥

¥

¥

81,078(106,710)

Net cash provided by (used in) financing activities

10,279(85,728)(38,230)

120,971(33,992)(19,749)

85,17250,020(56,015)

57,775

1,225

Cash and cash equivalents at end of year

296,811

195,566

317,590

188,011

121,284

108,569

112,596

100,535

77,212

136,929

71,119

5.4

4.5

(2.6)

(2.8)

5.1

3.5

3.5

4.1

3.8

2.7

3.0

Indices
Return on equity (ROE) (%)

2.3

1.9

(1.1)

(1.2)

2.5

1.7

1.7

2.0

1.8

1.3

1.5

4.5

4.6

1.6

(0.4)

4.8

4.8

4.3

4.3

4.5

4.9

4.7

Equity ratio (%)

43.0

41.4

40.8

40.0

47.1

48.8

49.7

48.0

50.5

44.8

49.6

¥ 161,876¥ 150,481

71,608¥ 222,125¥ 191,007¥ 150,674¥ 128,381¥ 113,676

43,51640,82539,91639,52836,09632,97730,99027,431

EBITDA (millions of yen)
Number of employees

74
Toyota Industries Report 2012

90,521
38,903¥¥

95,47225,030¥97,54023,056

Consolidated Eleven-Year Summary

Consolidated Eleven-Year Summary

1. Net income (loss) per share is computed based on the average number of shares for each year.
2. ROE and ROA are computed based on the average total net assets and total assets, respectively, for each year.
3. Operating profit margin = Operating income (loss) / Net sales
4. Equity ratio = (Total net assets – Subscription rights to shares – Minority interests) / Total assets
5. EBITDA = Income before income taxes + Interest expenses – Interest and dividends income + Depreciation and amortization¥

Financial Section /Corporate Information

Financial Section /Corporate Information

Return on assets (ROA) (%)
Operating profit margin (%)

75
Toyota Industries Report 2012

Consolidated Balance Sheets

Toyota Industries Corporation
As of March 31, 2012 and 2011
Millions of yen

ASSETS

Millions of yen

2012

2011

¥ 274,710¥ 198,654

Trade notes and accounts receivable

195,391

152,121

Lease investment assets

36,57035,146

Short-term investments

92,249132,430

Current assets:
Cash and deposits

Merchandise and finished goods

48,18342,940Work in process

33,72731,256

Raw materials and supplies

34,53630,065

Deferred tax assets

20,36818,493

Other current assets

36,35832,646

Allowance for doubtful accounts(2,740)(2,863)

Total current assets

769,356

670,893

Buildings and structures

141,412

159,606

Machinery, equipment and vehicles

180,146

185,988

Fixed assets:
Property, plant and equipment:

Tools, furniture and fixtures

24,44823,634

Land

116,526

119,697

Construction in progress

18,5198,350

Total property, plant and equipment

481,053497,278

Intangible assets:
Goodwill

68,824

68,573

Other intangible assets

37,952

10,767

Total intangible assets

106,777

79,3401,177,591

1,123,306

LIABILITIES AND NET ASSETS

2012

2011

¥ 168,465
110,212
12,897
54,10537,61918,16912,5103525
165,018¥ 144,956
99,946
11,13330,82937,873
14,34918,320737
521
153,275

579,527

511,944

187,238
249,183
85,754297,304
48,973
11,160205,649
236,60282,813309,256
46,924
12,321

879,615
1,459,142

893,568
1,405,512

80,46280,462

106,128455,042(50,266)

106,179
412,029(50,703)

Total shareholders’ equity

591,367

547,968

Accumulated other comprehensive income:
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment

565,007(131)(14,763)488,277
46(8,075)550,1122,310
54,051
1,197,841¥ 2,656,984

480,248
2,132
45,589
1,075,939¥ 2,481,452

Current liabilities:
Trade notes and accounts payable
Short-term loans payable
Commercial paper
Current portion of bonds
Lease obligations
Accounts payable—otherAccrued income taxes
Deferred tax liabilities
Allowance for bonuses to directors and corporate auditors
Other current obligations
Total current liabilities
Long-term liabilities:
Bonds payable
Long-term loans payable
Lease obligations
Deferred tax liabilities
Allowance for retirement benefits
Other long-term liabilities
Total long-term liabilities
Total liabilities
Shareholders’ equity:
Capital stock
Authorized — 1,100,000,000 shares
Issued— 325,840,640 shares as of March 31, 2012
325,840,640 shares as of March 31, 2011
Capital surplus
Retained earnings
Treasury stock
14,153,619 shares as of March 31, 2012
14,275,721 shares as of March 31, 2011

Investments and other assets:
10,7589,786

Lease investment assets

76,566

71,480

Other investments and other assets

35,03429,539

(152)

(173)

1,299,798

1,233,940

1,887,628

1,810,559¥ 2,656,984¥ 2,481,452

Consolidated Balance Sheets

Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets

76
Toyota Industries Report 2012

Total accumulated other comprehensive income
Subscription rights to shares
Minority interests
Total net assets
Total liabilities and net assets

Consolidated Balance Sheets

Deferred tax assets

Financial Section /Corporate Information

Financial Section /Corporate Information

Investments in securities

77
Toyota Industries Report 2012

Consolidated Statements of Income

Consolidated Statements of Comprehensive Income

Toyota Industries Corporation
For the years ended March 31, 2012 and 2011

Toyota Industries Corporation
For the years ended March 31, 2012 and 2011
Millions of yen

Millions of yen

2012

2011

Net sales¥ 1,543,352¥ 1,479,839

Income before minority interests

Cost of sales

1,301,617

1,250,313

Other comprehensive income:

241,734

229,526

Gross profit
Selling, general and administrative expenses:

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

Sales commissions

10,003

8,913

Foreign currency translation adjustment

Salaries and allowances

68,176

62,969

Share of other comprehensive income of associates accounted for using equity method

Retirement benefit expenses

1,977

2,020

Comprehensive income

Depreciation

5,951

6,332

Profit attributable to:

Research and development expenses

25,34821,727

Owners of the parent

Others60,18458,765

Minority interests

70,092

68,798Operating income

2012

2011

¥ 60,771¥ 49,058

76,752(55,834)

(177)

55

(6,820)(6,375)

(216)

(300)

130,308(13,396)

128,457(14,174)

1,850

777

Non-operating income:Interest income

9,070

9,172

Dividends income

17,933

14,975Gain on sales of marketable securities

1,159

488

Other non-operating income

6,545

7,407

Interest expenses(16,046)(15,773)

Loss on disposal of fixed assets(1,035)(1,281)Non-operating expenses:

Equity in net losses of affiliated companies
Other non-operating expenses
Ordinary income

(490)

(473)

(6,363)(9,402)80,86673,911

4,599—

Extraordinary income:Gain on step acquisitions
Extraordinary losses:
Losses on the Great East Japan Earthquake(4,631)
69,279

Income taxes — current

23,38225,456

Income taxes — deferred

1,311(5,234)60,77149,058

2,177

1,852

Income before minority interests
Financial Section /Corporate Information

Income on minority interests in consolidated subsidiaries
Net income¥

58,594¥47,205Yen

Net income per share — diluted
Net assets per share
Cash dividends per share

78
Toyota Industries Report 2012

¥ 188.02¥ 151.51——

3,662.26

3,300.17

50.00

50.00

Consolidated Statements ofComprehensive Income

Consolidated Statements of Income

Net income per share — basic

Financial Section /Corporate Information—
85,465

Income before income taxes and minority interests

79
Toyota Industries Report 2012

Consolidated Statements of Changes in Net Assets

Toyota Industries Corporation
For the years ended March 31, 2012 and 2011
Millions of yen

2012

Toyota Industries Report 2012

80,46280,462¥80,46280,462

106,179

106,179(50)(50)
106,128(0)(0)
106,179

412,029

378,648(15,581)—
58,59443,013455,042(14,020)
196
47,20533,381
412,029(50,703)(50,689)

(5)
441
436
(50,266)

(15)
1
(13)
(50,703)547,968

514,601(15,581)—
58,594(5)391
43,399591,367(14,020)
196
47,205(15)
033,367547,968

488,277

544,068

76,72976,729565,007(55,790)(55,790)488,277

2012

Deferred gains or losses on hedges
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Foreign currency translation adjustment
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Total accumulated other comprehensive income
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Subscription rights to shares
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Minority interests
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Total net assets
Balance at the beginning of current period
Changes of items during the period
Dividends from surplus
Increase (decrease) due to decrease in consolidated subsidiaries
Net income
Repurchase of treasury stock
Disposal of treasury stock
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period

¥

2011

46

¥

(9)

(177)
(177)
(131)

55
55
46

(8,075)(2,430)(6,688)(6,688)(14,763)(5,645)(5,645)(8,075)480,248541,628

69,86369,863550,112(61,380)(61,380)
480,248

2,132

1,720

178
178
2,310

411
411
2,132

45,58946,9788,461
8,461
54,051(1,389)(1,389)45,589

1,075,939

1,104,929(15,581)—
58,594(5)391
78,503
121,902¥ 1,197,841(14,020)
196
47,205(15)
0(62,357)(28,990)¥ 1,075,939

Consolidated Statements of
Changes in Net Assets

Consolidated Statements of
Changes in Net Assets

80

¥

2011

Financial Section /Corporate Information

Financial Section /Corporate Information

Shareholders’ equity
Capital stock
Balance at the beginning of current period
Balance at the end of current period
Capital surplus
Balance at the beginning of current period
Changes of items during the period
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Retained earnings
Balance at the beginning of current period
Changes of items during the period
Dividends from surplus
Increase (decrease) due to decrease in consolidated subsidiaries
Net income
Total changes of items during the period
Balance at the end of current period
Treasury stock
Balance at the beginning of current period
Changes of items during the period
Repurchase of treasury stock
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Total shareholders’ equity
Balance at the beginning of current period
Changes of items during the period
Dividends from surplus
Increase (decrease) due to decrease in consolidated subsidiaries
Net income
Repurchase of treasury stock
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period

Millions of yen

81
Toyota Industries Report 2012

Board of Directors,
Corporate Auditors and Managing Officers

Consolidated Statements of Cash Flows(As of June 14, 2012)

Board of Directors

Toyota Industries Corporation
For the years ended March 31, 2012 and 2011
Millions of yen

Toyota Industries Report 2012

¥ 85,465
87,368(159)(27,004)
16,046490(47,043)(13,897)
25,307(5,357)
121,216
26,992(15,940)(30,549)
101,718¥ 69,279
89,576(195)(24,148)
15,773473
11,650(16,953)
3,440
19,228168,125
24,173(15,882)(22,755)
153,661(76,638)
8,408(1,924)
1,720(5,568)
1,228
(27)
374
70,161(7,137)(9,403)(48,085)
7,645(56,000)
2,963
(25)
41
(30)
730
(89,351)(5,461)(187,574)(21,706)
50,482—35,604(30,761)(5)(15,581)
(478)
1,220
(8,495)
10,279(1,348)101,244
195,566¥ 296,811(6,759)
240
(826)
4,002
(49,180)(15)(14,020)(528)
143(18,784)(85,728)(2,382)(122,024)
317,590¥ 195,566

ChairmanVice Chairman

President

Akira Imura

Kazunori Yoshida

Tetsuro Toyoda

Executive Vice President

Executive Vice President

Executive Vice President

Kimpei Mitsuya

Tetsuo Agata

Chiaki Yamaguchi

Senior Managing Directors

Toshiyuki Sekimori
Kazue Sasaki
Hirotaka Morishita

Directors

Shinya Furukawa
Akira Onishi
Masaharu Suzuki

Masafumi Kato
Norio Sasaki
Toshifumi Ogawa
Toshifumi Onishi
Fujio Cho

Corporate Auditors
Full-Time Corporate Auditors

Shigetaka Yoshida
Kakuo Ishikawa

Corporate Auditors

Katsuaki Watanabe
Toshio Mita
Hans-Juergen MarxManaging Officers
Senior Managing Officers

Takaki Ogawa
Kohei Nozaki
Kan Otsuka
Taku Yamamoto

Managing Officers

Yukihisa Tsuchimoto
Hiroaki Asai
Takashi Ito
Toshiya Yamagishi
Junichi Harada
Mikihiko Okamoto
Hirooki Fujiwara
Yasuhiro Murata
Yojiro Mizuno

Masahiro Kawaguchi
Susumu Toyoda
Yuji Ishizaki
Keizo Hara
Kiyotsugu Kurimoto
Masafumi Kunito
Toshihiko Shimizu
Koichi Ito

Board of Directors, Corporate
Auditors and Managing Officers

Consolidated Statements ofCash Flows

82

2011

Financial Section /Corporate Information

Financial Section /Corporate Information

Cash flows from operating activities:
Income before income taxes and minority interests
Depreciation and amortization
Decrease in allowance for doubtful accounts
Interest and dividends income
Interest expenses
Equity in net losses of affiliated companies(Increase) decrease in receivables
Increase in inventories
Increase in payables
Others, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities:
Payments for purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Payments for purchases of investment securities
Proceeds from sales of investment securities
Payments for acquisition of subsidiaries’ stock resulting in change in scope of consolidation
Proceeds from sales of subsidiaries’ stock resulting in change in scope of consolidation
Payments for loans madeProceeds from collections of loans
Net decrease (increase) in time deposits
Others, net
Net cash used in investing activities
Cash flows from financing activities:
Decrease in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuances of bonds
Repayments of bonds
Payments for repurchase of treasury stocks
Cash dividends paid
Cash dividends paid to minority shareholders
Proceeds from payment by minority shareholders
Others, net
Net cash provided by (used in) financing activities
Translation adjustments of cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

2012

83
Toyota Industries Report 2012

Major Consolidated Subsidiaries(As of March 31, 2012)*1: Including indirect investment

Segment

Company Name

Location

Ownership
Ratio*1 (%)

Business Activities

Japan

Materials
Handling
Equipment

Automobile

Logistics

EuropeBT Products AB

MjölbyProduction of materials handling equipment

100.0

Aichi Corporation

Ageo-shi, Saitama

Production of aerial work platforms

51.0

Toyota Industries Europe AB

MjölbyHolding company for materials handling equipment business in Europe

100.0

TOYOTA L&F Fukui Co., Ltd.

Fukui-shi, Fukui

Sales and servicing of materials handling equipment

100.0

Toyota Material Handling Europe AB

MjölbyEuropean headquarters for materials handling equipment business

100.0

TOYOTA L&F Tokyo Co., Ltd.

Shinagawa-ku, Tokyo

Sales and servicing of materials handling equipment

100.0

Toyota Material Handling Sweden AB

BrommaSales and servicing of materials handling equipment

100.0

Nishina Industrial Co., Ltd.

Nagano-shi, Nagano

Production of materials handling equipment and construction machinery parts

97.5

NorwayToyota Material Handling Norway AS

Trondheim

Sales and servicing of materials handling equipment

100.0

TOYOTA L&F Shizuoka Co., Ltd.

Shizuoka-shi, Shizuoka

Sales and servicing of materials handling equipment

100.0

Finland

Toyota Material Handling Finland OY

VantaaSales and servicing of materials handling equipment

100.0

HANDA Casting Company

Handa-shi, Aichi

Production of foundry parts

100.0

LatviaToyota Material Handling Baltic SIA.

Riga

Sales and servicing of materials handling equipment

100.0

Unica Co., Ltd.

Kiyosu-shi, Aichi

Production of in-house transporters

100.0

PolandToyota Material Handling Polska Sp. z o.o.

Pruszków

Sales and servicing of materials handling equipment

100.0

TOYOTA L&F Hyogo Co., Ltd.

Nishinomiya-shi, Hyogo

Sales and servicing of materials handling equipment

100.0

Denmark

Toyota Material Handling Danmark A/SSlangerup

Sales and servicing of materials handling equipment

100.0

Tokaiseiki Co., Ltd.

Iwata-shi, Shizuoka

Production of compressor and engine parts

100.0

U.K.

Toyota Material Handling UK Limited

Slough, Berkshire

Sales and servicing of materials handling equipment

100.0

Altex Co., Ltd.

Hamamatsu-shi, Shizuoka

Production of compressor parts

100.0

Germany

Toyota Material Handling Deutschland GmbH

Langenhagen

Sales and servicing of materials handling equipment

100.0

BT France S.a.r.l.

Marne La ValléeSales and servicing of materials handling equipment

100.0

Toyota Industrial Equipment Europe, S.A.R.L.

AncenisSales of materials handling equipment

100.0

Toyota Industrial Equipment, S.A.

AncenisProduction of materials handling equipment

100.0

SwedenIZUMI MACHINE MFG. CO., LTD.

Obu-shi, Aichi

Production of specialized machine tools, friction welding machines, automotive parts

100.0

Nagao Kogyo Co., Ltd.

Nagoya-shi, Aichi

Production of compressor, materials handling equipment and weaving machinery parts

100.0

Miduho Industry Co., Ltd.

Nagoya-shi, Aichi

Production of automotive, compressor and materials handling equipment parts

100.0

Iwama Loom Works, Ltd.

Oguchi-cho, Niwa-gun, Aichi Production of compressor parts

100.0

Tokyu Co., Ltd.

Oguchi-cho, Niwa-gun, Aichi Production of compressor parts and industrial machinery

100.0

KTL Co., Ltd.

Koto-ku, TokyoManagement and operation of distribution centers

50.5

Netherlands

Toyota Material Handling Nederland B.V.

Wanbishi Archives Co., Ltd.

Minato-ku, Tokyo

Data storage, management, collection and delivery services

100.0

Spain

Toyota Material Handling España, S.A.

Asahi Security Co., Ltd.

Minato-ku, Tokyo

Cash collection and delivery and cash proceeds management

100.0

Austria

Toyota Material Handling Austria GmbH

Wiener Neudorf

Sales and servicing of materials handling equipment

100.0

Advanced Logistics Solutions Co., Ltd.

Obu-shi, Aichi

Planning, design and operation of distribution centers

100.0

Czech Republic Toyota Material Handling CZ s.r.o.

Rudna

Sales and servicing of materials handling equipment

100.0

ALT Logistics Co., Ltd.

Obu-shi, Aichi

Distribution service contracting; planning, management and operation of distribution centers

60.0

Slovakia

Toyota Material Handling Slovensko s.r.o.

Bratislava

Sales and servicing of materials handling equipment

100.0

Taikoh Transportation Co., Ltd.

Kariya-shi, Aichi

Land transportation services

52.8

Hungary

Toyota Material Handling Hungary Kft.

Budapest

Sales and servicing of materials handling equipment

100.0

Ikeda-cho, Ibi-gun, Gifu

Production of textile machinery and parts

100.0

Switzerland

Toyota Material Handling Schweiz AG

ZürichSales and servicing of materials handling equipment

50.0

ELETT CORPORATION

Chiyoda-ku, Tokyo

Production of motors and inverters for industrial machinery

60.0

CESAB Carrelli Elevatori S.p.A.

Bologna

Production of materials handling equipment

100.0

TIBC Corporation*2

Obu-shi, Aichi

Production of semiconductor package substrates

60.0

Kariya-shi, Aichi

Total construction management, security management, civil engineering/construction design work andreal estate management

100.0

Sun Staff, Inc.

Kariya-shi, Aichi

Personnel placement, contract office staffing

100.0

Sun Valley Inc.

Kariya-shi, Aichi

Sales of goods, travel agency, organizing and running of events

100.0

Shine’s Co., Ltd.

Kariya-shi, Aichi

Management and operation of employee clubs

100.0

Toyota Industries Well Support Corporation Kariya-shi, Aichi

Planning and operation of benefit programs; administrative processing services for payroll accounting, etc.

100.0

Toyoda High System, Incorporated

Kariya-shi, Aichi

Planning, development, formulation and operation of information infrastructure and systems

100.0

Sun River Co., Ltd.

Suita-shi, Osaka

Sports facilities, real estate lease, restaurant management

100.0

Materials
Handling
Equipment

Country

Company Name

Location

Italy

Automobile

Business Activities

CanadaFranklin, Indiana

Production of materials handling equipment parts

100.0

North Vernon Industry Corp.

North Vernon, Indiana

Production of materials handling equipment parts

100.0

Raymond-Muscatine Inc.

Muscatine, Iowa

Production of materials handling equipment

100.0

The Raymond Corporation

Greene, New York

Production of materials handling equipment

100.0

Toyota Industrial Equipment Mfg., Inc.

Columbus, Indiana

Production of materials handling equipment

100.0

Toyota Material Handling North America, Inc.

Columbus, Indiana

North American headquarters for materials handling equipment business

100.0

Toyota Material Handling, U.S.A., Inc.

Irvine, California

Sales of materials handling equipment

100.0

G. N. Johnston Equipment Co., Ltd.

Mississauga, Ontario

Sales and servicing of materials handling equipment

100.0

Michigan Automotive Compressor, Inc.

Parma, Michigan

Production of compressors

60.0

TD Automotive Compressor Georgia, LLC

Pendergrass, Georgia

Production of compressors

65.0

Production of compressor parts

100.0

Toyota Industries Compressor Parts America, Co. Pendergrass, Georgia
Textile Machinery U.S.A.

Toyoda Textile Machinery, Inc.

Charlotte, North Carolina Sales and servicing of textile machinery

100.0

OthersToyota Industries North America, Inc.

Columbus, Indiana

100.0

Toyota Industries Report 2012

U.S.A.

Holding company in the U.S.A.

Sales and servicing of materials handling equipment

100.0

Ede

Sales and servicing of materials handling equipment

100.0

Barberá del VallésSales and servicing of materials handling equipment

100.0

WilrijkToyota Material Handling Italia S.r.l.

Bologna

Sales and servicing of materials handling equipment

100.0

Markopoulo, Attica

Sales and servicing of materials handling equipment

100.0

Germany

TD Deutsche Klimakompressor GmbH

Bernsdorf

Production of compressors

65.0

Toyota Textile Machinery Europe, AG

Uster

Sales and servicing of textile machinery

100.0

Uster Technologies AG

Uster

Production of yarn quality measurement instruments and cotton classing instruments

50.3

Toyota Industries Finance International AB

MjölbyFunding, loan, other financial services

100.0

India

Toyota Material Handling India Pvt. Ltd.

Delhi

Sales and servicing of materials handling equipment

75.0

Vietnam

Toyota Industrial Equipment Vietnam Co., LTD.

Hung Yen

Production of materials handling equipment parts

90.0
100.0

SwedenOthersMaterials
Handling
Equipment

Automobile

Toyota Material Handling Australia Pty Limited

New South Wales

Sales and servicing of materials handling equipment

Toyota Material Handling (Shanghai) Co., Ltd.

Shanghai

Sales of materials handling equipment

75.0

China

BT Manufacturing (Foshan) Co., Ltd.

Foshan, Guandong

Production of materials handling equipment

100.0

Raymond Manufacturing (Dalian) Co., Ltd.

Dalian, Liaoning

Production of materials handling equipment

100.0

BrazilToyota Material Handling Mercosur Indústria eSão Paulo
Comércio de Equipamentos Ltda

Sales and servicing of materials handling equipment

100.0

India

Kirloskar Toyoda Textile Machinery Pvt. Ltd.

Bangalore

Production of textile machinery and automotive parts

95.1

Indonesia

P.T. TD Automotive Compressor Indonesia

Bekasi

Production of compressors

50.1

Toyota Industry (Kunshan) Co., Ltd.

Kunshan, Jiangsu

Production of automotive parts and materials handling equipment, etc.

63.7

TD Automotive Compressor Kunshan Co., Ltd.

Kunshan, Jiangsu

China
Logistics
Textile Machinery

Production of compressors

59.8

China

Toyota Industries Trading & Logistics (China) Co.,
Shanghai
Ltd.

Import/export, Chinese domestic distribution, operation of distribution centers

100.0

China

Toyota Textile Machinery (Shanghai) Co., Ltd.

ShanghaiInstallation and servicing of textile machinery

100.0

BrazilToyota Máquinas Têxteis Brasil Ltda

São Paulo

Sales and servicing of textile machinery

100.0■ Affiliates Accounted for by the Equity Method
Materials
Handling
Equipment

Japan

TOYOTA L&F Kinki Co., Ltd.

Osaka-shi, Osaka

Sales and servicing of materials handling equipment

33.8

Automobile

PolandToyota Motor Industries Poland Sp. z o.o.

Jelcz-Laskowice

Production of diesel engines

40.0

Major Consolidated Subsidiaries

Major Consolidated Subsidiaries

U.S.A.

Indiana Hydraulic Equipment, Corp.

100.0

Toyota Material Handling Belgium NV/SA

Toyota Material Handling Greece SA

Australia

Ownership
Ratio*1 (%)

Sales and marketing of materials handling equipment

GreeceTextile Machinery Switzerland
OthersToyota Material Handling Europe Brussels NV/SA Brussels

Financial Section /Corporate Information

Financial Section /Corporate Information

U.S.A.

FranceBelgium

North America

84

Ownership
Ratio*1 (%)

Business Activities

100.0*1: Including indirect investment

Automobile

Location

Sales and servicing of materials handling equipment*2: TIBC Corporation will be excluded from the scope of consolidation in July 2012. Dissolution of the company is planned in January 2013.

Materials
Handling
Equipment

Company Name

Akita-shi, Akita

SKM CORPORATION

Segment

Country

TOYOTA L&F Akita Co., Ltd.

Textile Machinery Hara Corporation

Others*1: Including indirect investment

Segment

85
Toyota Industries Report 2012

Major Production Bases

Investor Information(As of March 31, 2012)■ Major Plants (Parent Company)
Plant

Location

Main Products

Start of Operations(As of March 31, 2012)

Corporate Head Office

Stock Exchange Listings

TOYOTA INDUSTRIES CORPORATIONTokyo, Osaka and Nagoya (Ticker Code: 6201)

Kariya Plant

Kariya-shi, Aichi

Textile machinery, compressors

1927

2-1, Toyoda-cho, Kariya-shi, Aichi, 448-8671, Japan

Obu PlantObu-shi, Aichi

Parts for compressors

1944

Telephone: +81-(0)566-22-2511

Number of Shareholders

Kyowa Plant

Obu-shi, Aichi

Electronic equipment, automotive press dies, production facilities, engine parts

1953

Facsimile: +81-(0)566-27-5650

21,632

Nagakusa Plant

Obu-shi, Aichi

Vehicles1967

Date of Establishment

Independent Accountant

November 18, 1926

PricewaterhouseCoopers Aarata

Takahama Plant

Takahama-shi, Aichi

Materials handling equipment, materials handling systems

1970

Hekinan Plant

Hekinan-shi, Aichi

Diesel engines, gasoline engines

1982

Higashichita Plant

Handa-shi, Aichi

Foundry parts, diesel engines

2000

Higashiura Plant

Higashiura-cho, Chita-gun, Aichi Parts for compressors

2002

Anjo Plant

Anjo-shi, Aichi

2007

Electronic equipment

Sumitomo Fudosan Shiodome Hamarikyu Bldg.

Common Stock

8-21-1 Ginza, Chuo-ku, Tokyo, 104-0061, Japan

No par value

Transfer Agent
Special Account Management Institution

Authorized: 1,100,000,000 shares
Issued:325,840,640 shares

Mitsubishi UFJ Trust and Banking Corporation■ Major Plants (Outside Japan)

Capital Stock

1-4-5, Marunouchi, Chiyoda-ku, Tokyo, 100-8212, Japan

80,462 million yen

Major Shareholders (Top 10)
Number of Shares Held(Thousands)

Percentage of Total
Shares in Issue (%)

Toyota Motor Corporation

76,60023.51

DENSO Corporation

29,647

9.10

Towa Real Estate Co., Ltd.

15,697

4.82

Toyota Tsusho Corporation

10,125

3.11

The Master Trust Bank of Japan, Ltd. (Trust Account)

10,118

3.11

Japan Trustee Services Bank, Ltd. (Trust Account)

6,955

2.13

Name

5
■
8■
9
■
7
■
6
■

2
3 ■
■
1
■
4
■

11 ■
12
■
10
■
13
■

Nippon Life Insurance Company

6,735

2.07

Aisin Seiki Co., Ltd.

6,578

2.02

Third Avenue Value Fund

5,143

1.58

Toyota Industries Corporation Employee Ownership Program

5,066

1.55

172,669

52.99

Total

Company NameCountry

Location

Main Products

Year of Foundation

U.S.A.

Columbus, Indiana

Materials handling equipment

1988

The Raymond Corporation

U.S.A.

Greene, New York

Materials handling equipment

1922

3

Michigan Automotive Compressor, Inc.

U.S.A.

Parma, Michigan

Compressors

1989

4

TD Automotive Compressor Georgia, LLC

U.S.A.

Pendergrass, Georgia

Compressors

2004

5

BT Products AB

SwedenMjölbyMaterials handling equipment

1946

6

CESAB Carrelli Elevatori S.p.A.

Italy

Bologna

Materials handling equipment

1942

7

Toyota Industrial Equipment, S.A.

FranceAncenisMaterials handling equipment

1995

8

TD Deutsche Klimakompressor GmbHGermany

Bernsdorf

Compressors

1998

9

Toyota Motor Industries Poland Sp. z o.o.

PolandJelcz-Laskowice

Diesel engines

2002

10 Kirloskar Toyoda Textile Machinery Pvt. Ltd.

India

Bangalore

Automotive parts, textile machinery

1995

11 Toyota Industry (Kunshan) Co., Ltd.

China

Kunshan, Jiangsu

Automotive parts, materials handling equipment, etc.

1994

12 TD Automotive Compressor Kunshan Co., Ltd.

China

Kunshan, Jiangsu

Compressors

2005

13 P.T. TD Automotive Compressor Indonesia

Indonesia

BekasiCompressors

2011

Distribution of Shares
0.5%
4.3%
8.5%

Foreign corporate entities and others

18.7%

Toyota Industries Report 2012

46.7%

Japanese financial institutions
Individuals, etc.
Treasury stock

21.3%

86

Japanese corporate entities

Investor Information

Major Production Bases

Toyota Industrial Equipment Mfg., Inc.

2

Financial Section /Corporate Information

Financial Section /Corporate Information1

Notes: 1. Toyota Industries Corporation also holds 14,153 thousand shares of treasury stock but is excluded fromthe above list.
2. Shares held for the purpose of trust services of respective banks are as follows:
The Master Trust Bank of Japan, Ltd. (Trust Account)
10,118 (Thousands)
Japan Trustee Services Bank, Ltd. (Trust Account)
6,955 (Thousands)

Japanese brokerages

87
Toyota Industries Report 2012

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

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