FY2015 2nd Quarter
Financial Results

November 4, 2014

Ⅰ．Financial Summary

1/ 31

Financial Summary<FY2015 2Q>
1. Net sales, operating income, ordinary income and net income
marked record highs for the second quarter of the six months
from April 1 to September 30

2. The favorable results of the materials handling equipment segment
contributed to the consolidated financial results

3. Revised up the forecasts of ordinary income and net income,as well as the distribution of dividend

2/ 31

Performance <FY2015 2Q>(Billion yen)

FY2014 2Q FY2015 2Q(6 months) (6 months)

ChangeNet sales

981.4

1,046.0

64.6

6.6%

Operating income

51.8

56.7

4.9

9.6%

Ordinary income

64.8

87.0

22.2

34.2%

Net income

43.5

60.9

17.4

40.1%

Net income
per share
Dividends
per share\139.09\194.18\55.09

-

\35

\50

\15

-

・Net sales and income increased
・The materials handling equipment segment has driven the financial results
and the car air-conditioning compressor business contributed as well・Revised the distribution of an interim dividend from ¥45 per share to ¥50 per share
3/ 31

Performance <FY2015 2Q>(Billion yen)

FY2014 2Q FY2015 2Q(6 months) (6 months)

ChangeCapitalExpenditures

47.5

55.5

8.0

17.0%

Depreciation

29.6

32.3

2.7

9.0%

\/US$

\99

\103

\4

-

\/Euro

\130

\139

\9

-

・Capital expenditures increased mainly in the Car air-conditioning compressor
and the Engine businesses
・Depreciation increased with an increase of capital expenditures
4/ 31

Performance <FY2015 2Q>(Billion yen)

As of MarchFY2015 2Q
31, 2014

ChangeTotal assets

3,799.0

4,024.9

225.9

5.9%

Total net assets

1,829.3

1,982.9

153.6

8.4%

Equity ratio

46.6%

47.7%

-

-

Consolidated
subsidiaries

215

214

(1)

-

・Total assets and total net assets increased due to an increase in market valueof investment securities

5/ 31

Segment Information <FY2015 2Q>
Net sales [Operating Income](Billion yen )FY2014 2Q FY2015 2Q(6 months)(6 months)

Unit Sales

ChangeVehicle

238.1

238.7

0.6

0.2%

Engine

107.6

93.8

(13.8)(12.8%)

132.9

152.6

19.7

14.8%

28.3
33.9
5.6
507.1
519.2
12.1
[ 19.4] [ 18.9] [( 0.5)]
383.8
433.7
49.9
[ 26.4] [ 31.8] [ 5.4]
47.4
48.0
0.6
[ 2.3][ 2.7] [ 0.4]
31.5
32.6
1.1
[ 1.8][ 1.8] [ 0.0]
11.4
12.3
0.9
[ 1.5][ 1.4] [( 0.1)]
981.4 1,046.0
64.6[ 51.8] [ 56.7] [ 4.9]

19.7%
2.4%

Car air-conditioning
compressor
Electoronics parts,
foundry and othres

Automoblie
Materials handlingequipment
Logistics
Textile machinery
Others
Total

13.0%
1.4%

Vitz (Yaris)(Thousand units)
FY2014 2Q FY2015 2Q
Change(6 months) (6 months)

Mark X ZiO

68
97
1

63
102
-

(5)
5
(1)

Vehicle

166

165

(1)

DieselGasoline

202
137

170
105

(32)
(32)

Engine

339

275

(64)

RAV4

3.7%

Car air-conditioning
compressor

7.7%

Materials handlingequipment

95

105

10

Air-jet loom

3.8

3.1

(0.7)

6.6%

12,560 14,220 1,660

・The Engine business :Net sales decreased because of a reduction of the unit sales, mainly KD diesel engine fitted into IMV・The Car air-conditioning compressor business :Net sales increased by an increase of overseas sales
・The Materials handling equipment segment :Net sales increased by an increase of unit sales and contribution of
Cascade and Aichi corporation
6/ 31

Change in Ordinary Income
Year-on-year Comparison (FY2014 2Q and FY2015 2Q)(Billion yen)
Increase in sales volume
9.2
Cost reduction
6.8
Positive impact of exchange
2.8
rate fluctuations
Changes in the net amount of
17.2
non-operating income andnon-operating expenses
Increases total
36.0
Total Changes in Ordinary Income

Increase in labor cost
Increase in depreciation
Increase in raw material cost
Increase in expenses and others

Decreases total
22.2

(6.8)
(2.7)
(1.0)
(3.3)

(13.8)

・Increase in sales volume, mainly of the Materials handling equipment business,
contributed to an increase of income
・Labor cost and depreciation increased because of aggressive
business initiatives

7/ 31

Performance <FY2015 Forecast>(Billion yen)

FY2014FY2015

2,007.8

2,100.0

92.2

4.6%

2,100.0

Operating income

107.6

115.0

7.4

6.8%

115.0

Ordinary income

138.1

161.0

22.9

16.6%

159.0

Net income

91.7

111.0

19.3

21.0%

109.0

\292.76\353.50\60.74-\347.23

\85

\100

\15

-

\90

Net sales

Net income
per share
Dividends
per share

ChangePrevious plan

8/ 31

Performance <FY2015 Forecast>(Billion yen)

FY2014FY2015

ChangeCapitalExpenditures

109.4

115.0

5.6

5.0%

115.0

Depreciation

64.1

69.0

4.9

7.6%

69.0

\/US$

\100

\104

\4

－

\101

\/Euro

\134

\137

\3

－

\136

Previous plan

9/ 31

Segment Information <FY2015 Forecast>
Net sales[Operating Income]
FY2014

VehicleEngineCar air-conditioning compressor
Electoronics parts, foundry and othres

Automoblie
Materials handlingequipment
Logistics
Textile machinery
OthersTotal

FY2015

467.0
455.0
202.5
185.0
275.7
315.0
61.2
69.0
1,006.6 1,024.0[ 35.1]809.2
886.0[ 58.0]95.3
100.0[ 5.1]
73.1
65.0[ 5.5]
23.4
25.0[ 3.4]
2,007.8 2,100.0[ 107.6](Billion yen)

ChangePrevious plan

(12.0)(17.5)
39.3
7.8
17.4

(2.6%)(8.7%)
14.2%
12.6%
1.7%

472.0
184.0
310.0
69.0
1,035.0

76.8

9.5%

880.0

4.7

4.9%

100.0

(8.1)

(11.1%)

60.0

1.6

6.4%

25.0

92.2

4.6%

2,100.0

10/ 31

Segment Information <FY2015 Forecast>
Unit Sales(Thousand units)

FY2014FY2015

Mark X ZiO

129
198
1

106
204
-

(23)
6
(1)

117
208
-

Vehicle

328

310

(18)

325

DieselGasoline

383
243

345
215

(38)
(28)

348
212

Engine

626

560

(66)

560

Car air-conditioning
compressor

25,48030,0004,520

30,000Materials handlingequipment

199

218

19

215

Air-jet loom

9.3

5.7

(3.6)

5.5

Vitz (Yaris)
RAV4

ChangePrevious plan

11/ 31

Change in Ordinary Income
Year-on-year Comparison (FY2014 full year and FY2015 full year forecast)(Billion yen)
Cost reduction
17.0
Increase in sales volume
14.0
Positive impact of exchange rate
4.0
fluctuations
Changes in the net amount of
15.5
non-operating income andnon-operating expenses
Increases total
50.5
Total Changes in Ordinary Income

Increase in labor cost
Increase in depreciation
Increase in raw material cost
Increase in expenses and others

Decreases total
22.9(11.0)
(4.9)
(2.0)
(9.7)

(27.6)

12/ 31

Ⅱ．Our Business Initiatives
toward Medium Term Growth
Solution

Materials Handling
Equipment

Key Components

Car air-conditioning
Compressor
13/ 31

Solution / Materials Handling Equipment【Japan】
・The increase in consumption tax had a low
impact on lift truck market resulting inmarket growth・The importance of after-sales-service andlogistics solutions is increasing【North America】
・Demand is expanding with the growth of
economyOthers 【Europe】
・Lift truck market is growing gradually
after the recession has bottomed out

Global lift truck market(Thousandunits)

Global lift truck market
1,000

800

600

Europe400

North
America
Japan

200

0
2007

2008

2009

2010

2011

2012

2013

2014

(CY)

(Estimated by Toyota Industries Corporation)【Emerging countries】
・The logistics volume is increasing by
population growth and economic
development

・Global lift truck market is expected to keep
growing for the foreseeable future・The needs for quality and performance are
increasing
14/ 31

Solution / Materials Handling Equipment

Prior initiatives to improve profitability
Toyota Industries’ Unite Sales(Thousandunits)【Leaner business structure】
・Build profitable organization through downsizingof bloated structure200【Enhance the appeal of products】
・Developed new products centered on 3E fields

150【Establish optimum production structures】
100

50

2008

(¥ Billion)

2009

2011

2012

2013

2014

Profit of the Materials handling equipment business

80

Operating income

2010

(FY)
(%)
8

Operating income margin

60

6Operating income

40

4

20

2

0

0

2008

2009

2010

2011

2012

2013

2014

Operating income margin

0

(FY)

-20

-2

-40

-4

・Supply products from optimally locatedproduction bases
・Established a production base in Brazil
・Completed relocating a plant in China andexpanded its production capabilities
・Supply components (motors) from a plant in
Vietnam【Upgrading sales and service capabilities】
・Expanded sales and service network
・Strengthened service capability【Expand our business domain】
・Made U.S.-based Cascade, a manufacturer oflift truck attachments into Toyota Industries’
subsidiary

Realized a great improvement in profits in step with the increasing of unit sales
15/ 31

Solution / Materials Handling Equipment

Our initiatives toward the expansion of value chain

Development
Promote productdevelopment centeredon 3E fields
・Improve environmental
performance of electric
lift trucks
・Meet tougher emission
regulations of internalcombustion lift trucks
・Develop next-generation
lift trucks

Production

Highly efficient
production based on
TPS

Establish global
production andsupply structures

Increase local
procurement ratio

Sales

Service

Develop optimum sales
network in each region

Strengthen service capability

・Integrate distribution channels
Make distributors into
subsidiaries
・Strengthen sales network

Sales activities appealing
cost advantage of the whole
life cycle of the products
Consultation for logistics
improvement and solution
sales
Strengthen leasing andrental business＜Developed countries＞
・Improve levels of customer
service by utilizing strengthened
sales and services network＜Emerging countries＞
・Deploy training programsfor service trainers
in each country
・Enhance service training
・Establish sales/service
companies

16/ 31

New Industrial Engines

Solution / Materials Handling Equipment

Diesel

Product development centered on 3Es

Toyota1KD2,982cc

1． One of the our main internal-combustion lift trucks
new GENEO released in Japan
Developed products enhanced safety, environmental performanceand operability
1）Environmental performance◆Fitted with our newly developed industrial clean engine
Diesel engines are fitted with our turbocharger
 Improve fuel economy by up to 30% compared to our conventional lift
trucks including the newly-developed high-efficient torque converterand others
 Diesel engines are capable of meeting tougher exhaust emission
regulations without diesel particulate filter
2）Safety

Toyota1ZS
1,795cc

Gas (LPG)/gasoline
Toyota1FS
3,685cc◆New Geneo include our unique system “SAS *” as standard equipment
 Contribute to a higher level of safety and operational efficiency
3）High operability*：System of Active Safety◆Attained significantly more compact body by designing the vehicle from scratch
 Realized high operability and reduction of operators’ strain⇒ Released in North America in Oct. 2013 and in Japan in Jul. 2014
⇒ Expanding the sales areas including Europe
New GENEO

17/ 31

Solution / Materials Handling Equipment

Product development centered on 3Es
2． Fuel cell lift truck
Aim for the realization of both high environmental performanceand economic performance◆Equipped with a high-efficient fuel cell system for lift trucks
 No CO2 emission during operation
 Continuous operation with hydrogen filing in 3 minutes

Fuel cell lift truck◆Carried out field tests with the government

3． Lithium-ion lift trucks
Solve problems associated with lead acid batteries◆ Contribute to raising operation rates of lift trucks
 Full charging is possible in about an hour, one-eighth of current level
 Unnecessary to replace the battery during operation◆ Eliminate the maintenance tasks for batteries

Lithium-ion lift truck Eliminate the maintenance tasks for batteries, such as water refilling and cleaning⇒ Both lift trucks were displayed in Logis-Tech Tokyo 2014 held in Sep. 2014
as reference exhibit⇒ Promoting the development of both lift trucks aiming early commercialization
18/ 31

Solution / Materials Handling Equipment

Upgrading Sales and Service Capabilities
1．Regional Initiatives

Implementing appropriate measures for each region, such as integration of
distribution channels and enhancement in the quality of services

TMHJ Service Skills Contest

1) Europe

・Completed to integrate separately operated sales channels for TOYOTA- and BT-brand lift trucks throughout Europe
・Upgrading sales capabilities by the establishment of a sales company in Russia (Apr. 2014)

2) North America
・Upgrading sales capabilities by making distributors into subsidiaries
・Continuing to enhance response to key-account business together with TOYOTA- and Raymond-brand lift trucks3) ALOMA* and China*：Asia, Latin America, Oceania, Middle East, Africa・Appealing economic advantage of a lifecycle of products backed by excellent products and service quality
in sales expansion activities
・Upgrading sales and service capabilities by providing a variety of training and tools
4) Japan・Appealing optimal logistics efficiency combining hardware (material handling systems) and software(logistics improvements)
・ Held the TMHJ Service Skills Contest aimed at improving the level of service of dealers
19/ 31

Solution / Materials Handling Equipment

Upgrading Sales and Service Capabilities
2．Strengthen sales finance business◆Background
Although many customers use sales finance,
the rate of customers who use TICO’s leasing
and rental business stay at slightly
over 30% of all

The image of sales finance ratioof our lift truck sales

Developed countries Depend heavily on other companies
Customers’ funds
Emerging countries Not undertaken
and others

TICO’s sales finance（Slightly over 30% of
total sale finance）
Leasing and rental
through othercompanies◆Purpose・ Respond to customers’ needs throughout the product lifecycle, including purchase,maintenance and replacement by appealing our capabilities of sales,
after-sales-service and financing
・ Expand the sales finance business in all areas by utilizing the collective
capabilities of TICO Group (fund-raising capability, global sales and service network)

20/ 31

Solution / Materials Handling Equipment

Upgrading Sales and Service Capabilities
2．Strengthen sales finance business◆The latest initiatives
Started to strengthen the response of TICO by establishing new operations (From Jun. 2013)
・Mexico : Established a sales finance company
・France : Established a branch of our sales finance company◆A new initiative
Acquire material handling business of U.S.-based TMCC
Acquisition cost

About 220* billion yen(mostly financial asset, remaining includes goodwill and others)*：2% of 9 trillion yen, TMCC’s financial asset (at the end of Mar.2014)【TMCC Profile】
・Company name ：Toyota Motor Credit Corporation (TMCC)
100% owned by Toyota Financial Service America, a Toyota Motor- owned
holding company for sales finance business・Head quarters ：California, USA・Establishment ： 1982

21/ 31

Solution / Materials Handling Equipment

Upgrading Sales and Service Capabilities
2．Strengthen sales finance business◆Future plan
Strengthen sales finance business in North America by leveraging TMCC’s strengths＜TMCC’s strengths＞
TMCC is one of the world’s top sales finance business companies
and has a great deal of know-how and skill
・Sales finance business know-how for materials handling equipment business,accumulated over a long period of time・Excellent structure and system of management, including management of risks such as
credit management and residual value
・A wide range of financial products lineup
The image of sales finance ratio of
our lift truck sales after acquisition of TMCC’smaterial handling business

Customers’ funds
and others

Preparing to start business in North America from 2015

TICO’s sales finance（About 50% of total
sales finance）
Sales financethrough othercompanies

By utilizing a great deal of TMCC’s know-how,
we strengthen our sales finance business andexpand the business globally
22/ 31

Solution / Materials Handling Equipment

Strengthen our business in emerging countries～ Acquired lift truck business of Tailift ～◆Purpose・Strengthen our business in emerging countries
・Complement sales areas and product lineup mutually◆Outline of acquisition
・Ownership rate ：55% （initial）
・Acquisition cost ：About 9 billion yen

ToyotaIndustries
Tailift◆Company profile

The image of each brand’s price range
High Price

Middle Price

Low Price

Toyota, BT,
Raymond, Cesab

---

---

---

Tailift(Taiwan)Tailift(China)・Company name ：Tailift Co., Ltd.
・Headquarters：Taichung, Taiwan
・Establishment ：1973
・Net sales：About 16 billion yen (Lift truck department, fiscal year ended Dec. 2013）
・Production bases：Taiwan, China
・Other information：The sales share is ranked at the third
in China lift truck market◆Future efforts

Internal-combustion lift truck
manufactured by Tailift

・Add middle- and low-priced products to TICO’s lineup and maximize synergy effectby using mutual advantages
・Aim for more growth in emerging countries, which markets are expected to expand
23/ 31

Solution / Materials Handling Equipment

Promote initiatives aimed at further growth(Thousandunits)

250

MarketToyota Industries’
Unit Sales Others

Market (CY)800＊

(Thousandunits)

200

150
600

Europe100

400・Further enhance the appeal of products
centered on 3E fields
・Develop key components internally【Strengthen supply structure】
Units sales (FY)

1,000

【Enhance the appeal of products】

Global Lift Truck Market andToyota Industries’ Unit Sales

North
America・Supply from optimally located production bases
and increase production capabilities
・Expand key components supply to Toyota
Industries’ group【Upgrading sales and service capabilities】
・Expand sales and service network
・Strengthen service capability
・Strengthen sales finance business

50

200

Japan
0

0
2007

2008

2009

2010

2011

2012

2013

2014
(plan）

CY: calendar year ended Dec 31; FY: fiscal year ended Mar. 31 of the following year
＊Estimated by Toyota Industries Corporation(CY/FY)・Expand product lineup meeting eachmarket needs
・Further expand unit sales by thehigh-quality products and services
・Improve profitability
24/ 31

Ⅱ．Our Business Initiatives
toward Medium Term Growth
Solution

Materials Handling
Equipment

Key Components

Car air-conditioning
Compressor
25/ 31

Key components / Car air-conditioning Compressor

Market Trend（Thousandunits）
OthersAutomobile unit sales

80,00060,000China

40,000Europe20,000

U.S.

Japan

0
2010

2011

2012

2013

（Forecast）（Thousandunits）

Car air-conditioning Compressor
market2014 （CY）

80,000Automobile sales are expected
to increase, mainly in the U.S.
and emerging countries
The rate of cars equippedwith air conditioning is expected
to grow steadily though slowly
Source: Created by Toyota Industries using MarkLines "Automotive Information Platform“
Sogo Planning “Market trend and future forecast of electric vehicles”,
Fuji Keizai “HEV and EV Market: Comprehensive Survey”,“Reality and Future Prospect of Electric Vehicle Market”,
IRC “Forecast of production and sales units of the global automotive industry”,
and FOURIN “Global Automotive statistical year book

60,000Car air-conditioning market
is expected to grow for theforeseeable future

40,00020,000
0
2010

2011

2012

2013

2014 （CY）（Forecast）

Estimated by Toyota Industries Corporation

26/ 31

Key components / Car air-conditioning Compressor

Automotive fuel consumption regulation（Km/L）（Km/L）

20

Japan

U.S.

10

10

0

0
2010

2015

2020 （CY）

20

China 20

10

10

2017

2025 （CY）

2012

2015

2020 （CY）

0

0
The goal of CO2
emissions is converted
to fuel efficiency(gasoline vehicle)

2012（Km/L）（Km/L）

Europe

20

2008

2015

2021 （CY）

Source: Created by Toyota Industries using MarkLines "Automotive Information Platform"

Fuel efficiency standards will be more stringent globally

The needs for high fuel-efficient or electric vehicles
are significantly growing
27/ 31

Key components / Car air-conditioning Compressor

Market needs for car air-conditioning compressor and our response

Emerging countries

Developed countries

Market Needs
Improvement fuel-efficiency

Our Response
・Develop a next-generation variabledisplacement type・Improve evaluation technology by actual
vehicles and prevent the leak of the technology

Electric automobile

・Develop a more fuel-efficient, compact andlighter weight electric type

More calm and comfortableriding in automobiles

・Develop the more quiet and lower-vibration
products

Increasing significance ofquality and performance

・Develop the products optimized performance,
price and quality, mainly variabledisplacement type

Strong demand for basic types ・Develop the price-competitive and reliable
products, mainly fixed-displacement typeof products

Respond to various needs including fuel efficiency at a high level28/ 31

Key components / Car air-conditioning Compressor

Optimize production and supply structure
Europe Respond to growing demand for compressors

North Respond to growing demand for variableAmerica displacement type due to more strict fueldue to the increase of automobile production
・ Increase production capabilities of the production base in Germany
・ Increase local procurement ratio

China

efficiency regulations

・Increase production capabilities to meet the increasingorders from Japanese and US auto makers

Increase local procurement ratio aiming tominimize the impact of currency fluctuations
・Increase production capabilities of a production
base for variable-displacement type compressor parts

Respond to the expansion of auto market as wellas the auto makers’ shift to focus more on quality
・Respond to the increasing supply to the auto makers other than TOYOTA
・Increase local procurement ratio

ASEAN
Respond to the increasing demand in the production base in Indonesia
・ Increase production capabilities for ASEAN and Indian markets
・Increase supply for auto makers other than TOYOTA
・Increase local procurement ratio
Consolidated
production bases

We strengthen global production structure further
to supply high-quality products stably
29/ 31

Key components / Car air-conditioning Compressor

TICO’s Technology and Sales Expansion

Fixed-displacement type(rotary valve)（Thousandunits）

Electric type(mass-production for HV)

30,000: World first
25,00020,00015,00010,0005,000

Variable-displacement type
(CS valve)

Variable-displacement type(one-way swash plate externallycontrolled type/ clutch less)（Plan）

30,000Electric
type

Variable-displacement type
(One-way swash plateinternally controlled type)
Fixed-displacement type(10-cylinder swash plate )Variable-displacement type
(One-Way Swash Plate )OthersFixed-displacement type(10-cylinder swash plate )0
81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 （FY）

30/ 31

Key components / Car air-conditioning Compressor

Further expansion of sales【Increase of unit sales】（Thousandunits）

Expand sales by further strengthening the appealof the products

30,000Toyota Industries’ Unit Sales
Others

20,000EuropeNorth
America
10,000・Expand sales without missing a shift to variabledisplacement type in North America
・Expand sales for small-sized vehicles in Europe
・Expand sales to the auto markers emphasizing
quality and performance in emerging countries
・Enhance auto markers’ trust by improving technical support
・Expand production capabilities in every region to respondto demand increase【Strengthen profitability】
Increase local procurement ratio
Maximize the effect of cost reduction by theincrease of production

Japan

0
2008 2009 2010 2011 2012 2013 2014 2015

(Plan)(FY)

Expand sales to the auto makers aroundthe world, improve profitability

31/ 31

Cautionary Statement with Respect
to Forward-Looking Statements
This presentation contains projections of business results as well as statements regarding
business plans, forecasts, strategies, and other forward-looking statements that are not tobe taken as historical fact. Projections and forward-looking statements are based on thecurrent expectations and estimates of Toyota Industries and its Group companies. All
suchprojections

andforward-looking

statements

are

based

on

management’s

assumptions and beliefs derived from the information available to it at the time of
producing this report and are not guarantees of future performance. You should also beaware that certain risks and uncertainties could cause the actual results of Toyota
Industries and its Group companies to differ materially from any projections or forwardlooking statements appearing in this report. These risks and uncertainties include, but are
not limited to, the following: 1) economic trends, 2) various competitive pressures,3) changes in relevant laws and regulations, and 4) fluctuations in exchange rates.