FY2014 2nd Quarter
Financial Results

November 1, 2013

Ⅰ． Financial Results

1 /32

Financial Summary<FY2014 2Q>

1. Net sales, operating income, ordinary income and net income
marked a record high for the second quarter of the six months
from April 1 to September 30

2. Net sales increased by 29%, operating income increased by 39%
Net sales of the Vehicle, the Engine, the Car Air-Conditioning Compressor
and the Textile Machinery marked a record high

3. Revised up the forecasts of net sales and income, as well as the
distribution of an interim dividend and year-end dividend forecast
of FY2014

2 /32

Performance <FY2014 2Q>(Billion yen)

FY2013 2Q FY2014 2Q(6 months) (6 months)

ChangeNet sales

762.9

981.4

218.5

28.6%

Operating income

37.2

51.8

14.6

39.2%

Ordinary income

42.4

64.8

22.4

52.8%

Net income

24.0

43.5

19.5

80.8%

Net income
per share
Dividends
per share\77.24\139.09\61.85

-

\25

\35

\10

-

・Net sales and operating income increased by the good performance of the Automobile Segment, an increase ofunit sales of the Materials Handling Equipment Segment and the inclusion of Cascade Corporation as a subsidiary・Revised the distribution of an interim dividend from ¥30 per share to ¥35 per share

3 /32

Performance <FY2014 2Q>(Billion yen)

FY2013 2Q FY2014 2Q(6 months) (6 months)

ChangeCapitalExpenditures

35.2

47.5

12.3

34.9%

Depreciation

27.0

29.6

2.6

9.6%

\/US$

\79

\99

\20

-

\/Euro

\101

\130

\29

-

・Capital expenditures increased mainly in the Car air-conditioning compressor business and the Materials
handling equipment segment
・Depreciation increased with an increase of capital expenditures

4 /32

Performance <FY2014 2Q>(Billion yen)

As of MarchFY2014 2Q
31, 2013

ChangeTotal assets

3,243.7

3,737.4

493.7

15.2%

Total net assets

1,524.9

1,820.2

295.3

19.4%

Equity ratio

45.4%

47.3%

-

-

Consolidated
subsidiaries

217

214

(3)

-

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

5 /32

Segment Information <FY2014 2Q>
Net sales [Operating Income](Billion yen )FY2013 2Q FY2014 2Q(6 months)(6 months)

ChangeUnit Sales

Vehicle

157.3

238.1

80.8

51.3%

Engine

105.2

107.6

2.4

2.2%

111.7

132.9

21.2

18.9%

28.3
402.8
[ 14.8]281.0[ 18.6]46.0[ 2.3]
18.0[( 0.0)]14.9[ 1.4]
762.9[ 37.2]

28.3
0.0
507.1
104.3
[ 19.4] [ 4.6]
383.8
102.8
[ 26.4] [ 7.8]
47.4
1.4
[ 2.3] [ 0.0]
31.5
13.5
[ 1.8] [ 1.8]
11.4
(3.5)
[ 1.5] [ 0.1]
981.4
218.5
[ 51.8] [ 14.6]

0.2%
25.9%

Car air-conditioning
compressor
Electoronics parts,
foundry and othres

Automoblie
Materials handlingequipment
Logistics
Textile machinery
Others
Total

36.6%
3.0%
74.6%
(23.7%)
28.6%(Thousand units)
FY2013 2Q FY2014 2Q
Change(6 months) (6 months)

Vitz (Yaris)
Mark X ZiO

85
41
1

68
97
1

(17)
56
(0)

Vehicle

127

166

39

DieselGasoline

216
108

202
137

(14)
29

Engine

324

339

15

11,790 12,560

770

RAV4

Car air-conditioning
compressor
Materials handlingequipment

88

95

7

Air-jet loom

1.8

3.8

2.0

・The Vehicle business : Net sales increased by favorable sales of new models of RAV4・The Car air-conditioning compressor business : Net sales increased by an increase of global unit sales
・The Materials handling equipment segment : Net sales increased by an increase of unit sales and the inclusion of Cascade Corporation
as a subsidiary

6 /32

Change in Ordinary Income
Year-on-year Comparison (FY2013 2Q and FY2014 2Q)(Billion yen)
Increase in sales volume
Cost reduction
Positive impact of exchange
rate fluctuations
Changes in the net amount of
non-operating income andnon-operating expenses
Increases total

10.1
6.5
12.6
7.8

37.0

Increase in labor cost
Increase in research anddevelopment expenses
Increase in expenses andothersDecreases total
Total Changes in Ordinary income

(5.0)
(3.7)
(5.9)

(14.6)
22.4

・Net sales increased due mainly to an increase of unit sales of the Automobile segment and the Materials
handling equipment segment
・Labor cost, research and development expenses and other expenses increased because of aggressive
business initiatives

7 /32

Performance <FY2014 Forecast>(Billion yen)

FY2013

FY2014

1,615.2

2,000.0

384.8

23.8%

1,900.0

Operating income

77.0

105.0

28.0

36.2%

95.0

Ordinary income

86.8

125.0

38.2

43.9%

114.0

Net income

53.1

78.0

24.9

46.8%

70.0

\170.36\249.07\78.71-\223.79

\55

\70

\15

-

\60

Net sales

Net income
per share
Dividends
per share

ChangePrevious plan

8 /32

Performance <FY2014 Forecast>(Billion yen)

FY2013

FY2014

ChangeCapitalExpenditures

89.4

100.0

10.6

11.8%

100.0

Depreciation

57.9

64.0

6.1

10.4%

66.0

\/US$

\83

\97

\14

－

\96

\/Euro

\107

\130

\23

－

\126

Previous plan

9 /32

Segment Information <FY2014 Forecast>
Net sales[Operating Income](Billion yen)

FY2013
VehicleEngineCar air-conditioning compressor
Electoronics parts, foundry and othres

Automoblie
Materials handlingequipment
Logistics
Textile machinery
OthersTotal

FY2014

356.7
472.0
216.7
211.0
228.1
271.0
57.0
61.0
858.6 1,015.0[ 29.4]596.4
790.0[ 38.7]93.0
100.0[ 4.8]
39.9
75.0[ 0.5]
27.2
20.0[ 3.3]
1,615.2 2,000.0[ 77.0]ChangePrevious plan

115.3
(5.7)
42.9
4.0
156.4

32.3%
(2.6%)
18.8%
6.9%
18.2%

420.0
220.0
265.0
60.0
965.0

193.6

32.5%

770.0

7.0

7.5%

100.0

35.1

88.0%

45.0

(7.2)

(26.5%)

20.0

384.8

23.8%

1,900.0

10 /32

Segment Information <FY2014 Forecast>
Unit Sales(Thousand units)

FY2013

FY2014

Mark X ZiO

155
112
2

126
198
1

(29)
86
(1)

113
176
1

Vehicle

269

325

56

290

DieselGasoline

452
214

397
253

(55)
39

433
272

Engine

666

650

(16)

705

Car air-conditioning
compressor

23,42026,0002,580

25,700Materials handlingequipment

185

203

18

197

Air-jet loom

4.6

10.0

5.4

6.5

Vitz (Yaris)
RAV4

ChangePrevious plan

11 /32

Change in Ordinary Income
Year-on-year Comparison (FY2013 full year and FY2014 full year forecast)(Billion yen)
Increase in sales volume
Cost reduction
Positive impact of exchange
rate fluctuations
Changes in the net amount of
non-operating income andnon-operating expenses
Increases total

21.0
16.0
17.0
10.2

64.2

Increase in labor cost
Increase in depreciation
Increase in research anddevelopment expenses
Increase in expenses andothers

(9.0)
(6.1)
(4.0)
(6.9)

Decreases total(26.0)
Total Changes in Ordinary income 38.2

12 /32

Ⅱ．Recent Sales Units

13 /32

Unit Sales by Segment
Sales expansion activities resulted increase ofunit sales in each segment(Thousand units)◆Vehicle◆Car airconditioning
compressor◆Engine◆Materials
handling
equipment◆Air-jet loom

26,000666

650

23,420

325
269

203
13,440

Second half

342

311

185

11,630

159

97

10.0
108

142

First half

127

FY2013

6.2

4.6

166

324

339

11,79012,560

2.8

88

95

3.8
1.8

FY2014FY2013

FY2014FY2013

FY2014FY2013

FY2014FY2013

FY201414 /32

Unit Sales of Materials Handling Equipment Business(Thousand units)

Global

Japan

203
185
Second half

97

36

33

18

16

108

17

18

FY2013

FY2014

North America
Aiming to achieve
the record-highmarket share,
although the market
remains at the same
level

70
59
37
30

29

33

FY2013

FY2014

Europe58

First half

88

FY2013

95

32

59
32

26

27

FY2013

FY2014

Implementing
aggressive sales
activities by the
integrated sales
networks in themarket remaining
unchanged

Expanding sales
proactively bycapturing themarket growth

Others

35

38

19

21

16

17

FY2013

FY2014

Expanding sales by
seizing the market
growth especially in
ASEAN

FY201415 /32

Unit Sales of Car Air-Conditioning Compressor Business(Thousand units)

GlobalJapan

26,00023,420

4,690
2,210

13,440
Second half

2,480

11,630FY2013

North America

Increasing the unit
sales by the
expansion of
5,430
electric type andothers in the2,720
steady market ofcars sales
2,710
FY2014First half

11,79012,560

3,730

3,800

FY2013

FY2014FY2013

4,360

4,120

FY2013

Europe
7,530

8,480

9,360
4,910

4,450

FY2014

Others8,460 Increasing the unit
4,340

4,120

FY2014

Increasing theunit sales ofvariable-type withthe growing car
marketsales for thecompact car
manufactures byappealing high fuelefficiency
performance

Aiming to surpass
the previous unit
sales in the full year
2,720

2,750

1,330

1,470

1,390

1,280

FY2013

FY201416 /32

Ⅲ． Our Business Initiatives towardmedium- to long-term growth Global Platforms
 Product development centered on 3Es
Materials Handling  Establishing Global Production and Supply Structures
Equipment Upgrading Sales and Service Capabilities
 Expanding our business domain
Solution

Key components

 Product development centered on 3Es

Car-air conditioning Establishing Optimum Production and Supply Structures
Compressor

17 /32

Solution / Materials Handling Equipment

Our initiatives toward the expansion of value chain

Development

Production

Global platforms

Highly efficient production
based on TPS

Promote productdevelopment
centered on 3E fields
・Improve environmental
performance of electric
lift trucks
・Meet tougher emission
regulations of internalcombustion lift trucks

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＜Developed countries＞

Sales activities appealing
cost advantage of the whole
life cycle of the products
Consultation for logistics
improvement and solution
sales
Strengthen leasing
and rental business・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

18 /32

Solution / Materials Handling Equipment

Global platforms
Reducing product development lead-time and improving pricecompetitiveness by commonalizing platforms and creating modules,
while responding market needs

1． Electric lift truck

1.5- to 3.0-ton

Released products manufactured in China to the China market
in May 2011 and to ALOMA* markets in Jan. 2012
*Asia, Latin America, Oceania, Middle East, Africa

2． Internal-combustion lift truck

3.5- to 8.0-ton

Started sales in North America in Apr. 2013
Started production in North America in Oct. 2013
Introduce more models as a series

19 /32

Solution / Materials Handling Equipment

Product development centered on 3Es
Enhancing the appeal of products by developing major functional components in-house

1． Improving environmental performance of electric lift trucks
Cooperating with the Electronics Division
Differentiated our products in the field of software by improving the performanceof controllers, one of the functional components
 Realized longer continuous operation by 10%

GENEO-R (started sales in May 2012)
High-pick Lift (started sales in Dec. 2012)

2． Meeting tougher emission regulations of internal-combustion
lift trucks
Cooperating with the Engine Division

3.5- to 8.0-ton

Equipped with our new 1KD diesel engine and turbocharger which are developedby the Engine division
 Eliminated diesel particulate filter by an extensive improvement of combustion efficiency
 Improved fuel efficiency by 30%
20 /32

Solution / Materials Handling Equipment

Establishing Global Production and Supply Structures
1．In developed countries, already established production bases
near each market
2．To emerging countries, changed the supply bases fromJapan to the optimal bases sequentially since May 2010
To Asia : supply from China
To Brazil : supply from the U.S.
To Russia : supply from Europe(Previously supplied from Japan）

Reducing product development lead-timeand transportation cost

3．Established a new plant in Brazil
・Commenced production of 1.8- to 3.0-ton internal-combustion lift trucks in Oct. 2013
・Production capacity : 5,000 units per year

21 /32

Solution / Materials Handling Equipment

Establishing Global Production and Supply Structures
4．Expanded production capabilities of a plant in China
・Completed to relocate and expand production capabilities in Jun. 2013
・Responding to expansion of the high-end market in China and increase of exports toemerging countries

5．Producing major functional components in optimum countries
Commenced production of motors for electric lift trucks in Vietnam in Apr. 2012
・Supplying these motors to our assembly plants in Japan, North America, Europe and China
・Improving the appeal of products and price competitiveness while increasing the number ofelectric lift trucks equipped with these motors

22 /32

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 acquisition of the ownership of distributors

1) Europe(1) In Jan. 2013, completed to integrate separately operated sales channels for
TOYOTA- and BT-brand lift trucks throughout Europe(2) Established a sales company in Russia （Launch operation in Apr. 2014)
Upgrading sales capabilities in the large and developing Russia market

2) North America(1) Acquiring key dealerships based on the premise of meeting TICO’s anddistributor owners’ needs(2) Continuing to enhance response to key-account business together withTOYOTA- and BT-brand lift trucks
23 /32

Solution / Materials Handling Equipment

Upgrading Sales and Service Capabilities
1．Regional Initiatives3) ALOMA and China(1) Established sales and service companies

India （Launched operations in May 2011)
China (Launched operations in Sep. 2011)(2) Strengthening service capabilities by continuing service technician training programs
at Global Training Center(3) Appealing economic advantage of a lifecycle of products backed by excellent products
and service quality in sales expansion activities

4) Japan(1) Strengthening sales expansion activities to new customers and large customers inevery industry sector and appealing optimal logistics efficiency combining hardware(material handling systems) and software (logistics improvements)(2) Further improving customer satisfaction by quick and fine support, utilizing our sales
and service networks throughout Japan24 /32

Solution / Materials Handling Equipment

Upgrading Sales and Service Capabilities
2．Strengthening leasing and rental business to respond to
customers’ needs
In Jun. 2013, established leasing and rental business bases in Mexico and France
・ Responding a wide range of customers’ needs by strengthening leasing and rental
business, as well as sales and services
・ Responding customers in all regions by utilizing our global sales and service networks
・ Improving customer satisfaction throughout the product lifecycle, including stages ofpurchase, maintenance and replacement

25 /32

Solution / Materials Handling Equipment

Expanding our business domain
1．At the end of Mar. 2013, acquired the ownership of U.S.-based
Cascade Corporation, one of the world’s largest manufacturers oflift truck attachments
・Further enhancing the appeal of products by sharing the advantages of each company
throughout activities to understand each business initiatives
・Expanding our business domain and respond to a broader range of customers’ logistics needs
・Promoting to reinforce components business including attachments in corporation with Cascade

26 /32

Further expansion of sales

Solution / Materials Handling Equipment(thousand units)(thousand units)

1,200

300

Market1,000

250

Unit sales of materials
handling equipment

Lift truck market

Our unit sales Others

800

200

600

150

Europe
400

100

North
America200

50【Enhance the appeal of products】
・Commonalize platforms
・Develop major functional components
in-house【Strengthen Supply Structures】
・Expand production capabilities inemerging countries
・Produce major functional components in
optimum countries【Upgrade Sales and Service Capabilities】
・Strengthen sales and service networks
・Strengthen service capabilities
・Strengthen leasing and rental business【Expand our business domain】

Japan
0

Company
estimation

0
2008

2009

2010

2011

2012

2013

2014

2016

(FY)

Aim to increase sales
units and income
27 /32

Key components / Car- air conditioning Compressor

TICO’s Technology and Sales Expansion
Fixed-displacement type(rotary valve)(Thousand units)

Electric type(mass-production for HV)

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

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

26,000Electric
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 （FY）

28 /32

Key components / Car- air conditioning Compressor

Product development centered on 3Es
1．Appropriately responding to a broader range of customers’
needs both in emerging countries and developed countries
Targetingdeveloped
countries

Fitted in all Toyota Motor Corporation’s HVs and PHVs
Promoting sales to other automakers
1) Electric type : Rapid increase in the number of inquiries due to expansion of
HV, PHV and EV market(1) More compact, lighter weight and improve quiet operation and fuel-efficiency(2) Enhancing the appeal of products by improving performance of motors and inverters
produced in-house

For HV, PHV, EV

For internalcombustion vehicle

Adopted by leading automakers around the worldsuch as Toyota Motor Corporation

1) Variable-displacement type : Needs for fuel-efficient type is growing primarily in North
America because of more strict regulations on fuel efficiency(1) Developing a next-generation type with further greater fuel efficiency(2) Optimum balance between performance and price of products for emerging countries
2) Fixed-displacement type : Strong demand in emerging countries
Targetingemerging
countries(1) Developing models for emerging countries(2) Improving price competitiveness29 /32

Key components / Car- air conditioning Compressor

Product development centered on 3Es
2．Launching new products1) Electric type

ESA series

Lighter weight by 10%, improved electricity efficiency by 10%
and better installation capabilities
Selling to Honda in addition to Ford and Volkswagen
2) Variable-displacement type

ESA34

SES series

Lighter weight by 10% and improved fuel efficiency by 10%
Selling to Toyota Motors, GM, Audi, Volkswagen, and Daimler

6SES1430 /32

Key components / Car- air conditioning Compressor

Establishing Optimum Production and Supply Structures
1．North America
1) Expanding production capabilities since 2012 to respond to the growing demand ofvariable-displacement type resulted from more strict regulations on fuel efficiency
2) Increasing local procurement ratio by establishment of a production base for compressor
parts in Sep. 2013
2．Europe
1) Expanded production capabilities in Oct. 2013 to respond to the growing demand ofcompressors associated with the increased production of cars
2) Increasing local procurement ratio
3．China
1) Responding the increasing orders from the automakers in Japan, U.S. and Europe
2) Increasing local procurement ratio
4．ASEAN1) Relocate a production base in Indonesia and expand production capabilities in Oct. 2014
to respond to the growing demand of compressors in ASEAN area and increasing exports toother areas
2) Increasing local procurement ratio
31 /32

Key components / Car- air conditioning Compressor

Further expansion of sales（Thousand units）

30,000【Enhance the appeal of products】

Toyota Industries Sales units

・Further strengthen the competitiveness offuel-efficient products
25,000

Others・Develop the products with good balance
between performance and price to respondto the needs of emerging countries

Europe【Strengthen the supply structure】

20,00015,00010,000・Increase production capabilities to
respond to the growing global demand
North
America・Improve price competitivenessby increasing local procurement ratio

5,000

Japan
0
2008 2009 2010 2011 2012 2013 2014

2016

(FY)

Accelerate expansion of sales
to automakers worldwide

32 /32

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.