FY2007 1H Financial Results
Six months ended September 30, 2006

Fuel-cell lift truck

Hybrid lift truck

October 31, 2006

I. Financial Summary

FY2007 1H Financial Results● Increases in net sales and profits for 7th consecutive year

(Billion yen)

FY2007
1st half

FY2006
1st half

ChangeChange(%)

Net sales

913.0

699.0+ 214.0+ 31%

Operatingincome

40.0

32.0+ 8.0+ 25%

Ordinary income

53.4

41.5+ 11.9+ 29%

Net income

30.2

25.0+ 5.2+ 21%

1

FY2007 Earnings Forecasts● Increases in net sales and profits expected for 8th consecutive year

(Billion yen)

FY2007
forecastNet sales

FY2006

ChangeChange(%)

1,800.0 1,505.9+ 294.1+ 20%

Operatingincome76.064.0+ 12.0+ 19%

Ordinary income

95.080.6+ 14.4+ 18%

Net income

53.0

47.0+ 6.0+ 13%2

II. Measures toward Fundamentals
for Further GrowthMeasures toward Fundamentals for Further Growth■1926:■1926:Establishment
Establishment

Venture spirit
Toyota Production System (TPS)Business diversification■2006:■2006: 80th
80th anniversary
anniversary
Fundamentals for further growth
Fair and sincere corporate culture
Environmental management
Safety first

Human resources
development andenhancement ofteam strengths

Unwavering pursuit of quality and cost
reduction

Undisputed
Undisputed No.
No. 11 −−UnitedUnited We
We Grow
Grow−−

Medium-Term Management Plan

3

Measures toward Fundamentals for Further Growth (1)Fair
FairandandSincere
SincereCorporate
CorporateCulture
Culture■ Thorough enforcement of compliance
Send a strong message as the top item of the Presidential Guidelines
・ Thorough enforcement of legal compliance・ Respect for cultures and local customs
Implement Group-wide in accordance with code of conduct guidelines■ Enhance systems and mechanisms throughCorporate Code of Conduct Committee
Promote through Compliance Subcommittee and Data Security
Subcommittee
Monitor and conduct compliance inspections through relevant divisions(including subsidiaries)
4Measures toward Fundamentals for Further Growth (2) (3)Environmental
EnvironmentalManagement
Management■ Augment consolidated environmental management
through Global Environmental Commitment
Achieved all items of 3rd Environmental Action Plan (by FY2006)
・Total CO2 emissions reduced by 5% versus FY1991 levels
・Environmental load emission volume reduced by 50% versus FY1999 levels

Started implementation of 4th Environmental Action Plan (from FY2007)
・ Introduction of ecological products into the market
・ Reduction of environmental load in every stage from development to production,
sales and service

SafetySafetyFirstFirst■ Reacknowledging the fundamental concept of “safeoperations is the first step of all operations”
Communicate the concept across in every top message, including Presidential Guidelines
On-site safety inspection of actual products by top management

5Measures toward Fundamentals for Further Growth (4)Unwavering
UnwaveringPursuitPursuitofofQuality
QualityandandCost
CostReduction
Reduction■ Dispatch Quality Guidelines and Cost Guidelines fromthe President throughout the Company■ Go back to fundamentals
Based on TPS and Total Quality Control, makehonest, steady and relentless efforts to improve
quality, reduce cost and eliminate waste
Drafting training of engineers

Drafting training■ On-site inspection of actual products
by top management
On-site quality and cost inspection of actual products
by top management
President Toyoda
conducting on-site
inspection

6

Measures toward Fundamentals for Further Growth (5)HumanHumanResources
ResourcesDevelopment
DevelopmentandandEnhancement
EnhancementofofTeam
TeamStrengths
Strengths■ Cultivate personnel to lead the next generation
Go back to fundamentals and improve specialized
techniques and management skills
・ Thorough training of basic operations at
Technical Training Center・Cultivate personnel well versed in TPS
Cultivate global-oriented personnel
Technical Training Center■ Augment team strengths under astrong leadership
Develop spirit of harmony through close communication
7

Medium-Term Growth Trajectory
140.0
Ordinary income

Over 2,000.0

95.0

Billion yen

Electronics
Logistics

80.6

2,000 -

70.9
51.3

Net sales
1,800.0

58.9

Materials Handling
Equipment

1,505.9

1,500 -

1,164.3

1,241.5

1,000 billion
yen inMaterials
Handling
Equipment

Car AirConditioning
Compressor

1,069.2
1,000 -Car Electronics

Vehicle/Engine

500 -1,000 billion
yen inautomobilerelated
businesses

Textile Machinery,
Others

003/3

04/3

05/3

06/3

07/3

・・・11/3(Target)8III. Financial Results

FY2007 1H Financial Results● Increases in net sales and profits for 7th consecutive year

(Billion yen)

FY2007
1st half

FY2006
1st half

ChangeChange(%)

Net sales

913.0

699.0

+ 214.0+ 31%

Operatingincome40.032.0+ 8.0+ 25%

Ordinary income

53.4

41.5+ 11.9

+ 29%

Net income

30.2

25.0+ 5.2

+ 21%

9

Net Sales by Segment● Increase in net sales in all segments

FY07 1H
913.0
VehicleBillion yen
500 400 -（+ 93.3）
431.0

222.3

(+214.0)

FY06 1H
699.0

Engine Compressor

154.7
113.1 105.0
80.1 65.4（+ 106.7）
388.2

337.7
281.5

300 -

FY07 FY06
1st half 1st half

200 -（+ 9.2）
39.8 30.6

100 -（+ 3.4）（+ 1.4）27.4 24.0
26.3 24.90

FY07
FY06
1st half 1st half
Automobile

Materials
Handling
Equipment

Logistics

TextileMachinery

Others10

Operating Income by Segment● Increase in profit for both Materials Handling
Equipment and Automobile segments
Billion yen

FY07 1H
40.0( + 8.0)

FY06 1H
32.0（+ 4.4）25 -22.7
20 -18.3(+ 2.3）15 - 13.7
11.4
10 -（+ 0.1）

5 -（+ 0）
0.5 0.5（+ 0.4）
0.5 0.1

2.2

2.1

0

FY07
FY06
1st half 1st half
Automobile

Materials
Handling
Equipment

Logistics

TextileMachineryOthers

11Change in Ordinary Income● Sales expansion and cost-reduction efforts offset increase in depreciation
expenses and rising raw materials prices

Year-on-year comparison (FY06 1st half and FY07 1st half)(YoY +11.9 billion yen)
+ 2.8 + 1.9

- 6.7

+ 3.9
- 5.4
- 3.0
- 2.5

53.4

Increase in
miscellaneous
expenses

Increase in personnel
expenses

Increase in raw
material prices

Increase in depreciation
expenses

Increase innet sales

FY06
1st half

BT Industries Group’s changein the fiscal year-end

41.5Cost reductions

Billion yen

Increases in non-operating
income (expenses)+ 10.5

Exchange rate fluctuations+ 10.4FY07
1st half

12

FY2007 Earnings Forecasts● Increases in net sales and profits expected for 8th consecutive year

(Billion yen)

FY2007
forecast
Net sales

FY2006

ChangeChange(%)

1,800.0 1,505.9+ 294.1+ 20%

Operatingincome76.064.0+ 12.0

+ 19%

Ordinary income

95.0

80.6

+ 14.4+ 18%

Net income

53.0

47.0

+ 6.0

+ 13%

13

Net Sales by Segment (FY2007 Forecasts)● Increases net sales in all segments expectedVehicle

Billion yen

885.0

746.7

（+ 124.8）
720.0595.2

600 -FY06
1,505.9

Engine Compressor

460.0372.0

1,000 - （+ 138.3）
800 -

FY07
(+ 294.1)
1,800.0

230.0215.9
160.0132.3
FY07 06

400 -（+ 24.9）
90.0 65.1

200 -（+ 5.3）
55.0 49.7（+1.1）
50.0 48.9

TextileMachinery

Others

007/3 06/3

Automobile

Materials
Handling
Equipment

Logistics

14

Unit Sales Forecasts (FY2007 Forecast)● Increases unit sales in all segments expected(Thousand units)

Unit sales forecasts
FY07forecast

FY06

ChangeChange(%)

Factors forincrease (decrease)other than unitsales
Increase in depreciation expenses

Materials
Handling
Equipment
Car AirConditioning
Compressor

Higher raw material prices

216

20,300184+ 32+ 17 %

19,110 + 1,190+6%Vehicle

350297+ 53+ 18 %Engine494362+ 132+ 36 %Effects of new products
Costs for new products launch
Strong performance by Aichi
Demand for lower prices
overseas

Decrease in pre-production
expenses*1 Unit sales of materials handling equipment are based on factory shipments (others are based on sales).
*2 Unit sales of engines exclude those used in lift trucks (intersegment transactions) and CKDs.

15Change in Ordinary Income (FY2007 Forecast)● Sales expansion and cost-reduction efforts expected to offset increase in depreciation
expenses and rising raw materials prices

Year-on-year comparison (FY06 Result and FY07Forecast)+ 2.4+ 1.9- 10.6+ 2.5(YoY +14.4 billion yen)
- 9.5
- 6.5
- 4.8
95.0
Increase in
miscellaneous
expenses

Increase inpersonnel expenses

Increase in raw
material prices

Increase in depreciation expenses

Costreductions

FY06

Increase in net sales

80.6

Increase in non-operating income(expenses)

Billion yen

Exchange rate
fluctuations+ 21.0BT Industries Group’s change in thefiscal year-end+ 18.0FY07

16

Capital Expenditures and Depreciation(Billion yen)
140 -

111.3

120 80 - 69.7

65.7
49.2

51.2

40 20 -

75.0

64.4
Depreciation

45.9

Capital expenditures

100 -60 -

130.0

130.1

0

FY03

04

05

06

07

Breakdown of Capital Expenditures(Billion yen)
48.0
43.6
41.2
50 36.040 27.0
27.0
23.2
30 - 27.4
22.0
16.6
18.2
17.7
20 12.0
6.0
10 5.50FY05 06 07
Compressor

Vehicle/EngineMaterials
Handling
Equipment

Foundry/
Electronics

Others17

Number of Employees
35,12632,977

Persons

30,99030,000 -27,431
25,03020,000 Others
Materials
Handling
Equipment

10,000 -Automobile
TextileMachinery

0FY03

04

05

06

07 1st half18

Net Income per Share, Dividends and Payout Ratio
Consolidated payout ratio

26.5 ％
26.0

23.7
Yen

169

22.2
146

150 -

135108
100 -

32

38

24

20

19

1218

1312

Net income per share

50 -45
Year23 end
InterimCash
Dividends

220 -

FY04

05

06

0719