FY2016 Financial Results

May 10, 2016

I. Financial Summary
1. Points of financial results
2. Financial results for FY2016
3. Financial forecast for FY2017

1/32

Points of Financial Results for FY2016
1. Net sales, operating profit, ordinary profit and profit
attributable to owners of the parent marked record highs.

2. The favorable results of the materials handling equipment
segment and car air-conditioning compressor businesssignificantly contributed to the consolidated financial results.

3. Decreases in net sales and operating profit are expected for
FY2017 forecast due to yen appreciation forecast.

2/32

Performance <FY2016>
FY2015(Billion yen)

FY2016

Change2,166.6

2,228.9

62.3

2.9%

Operating profit

117.5

127.9

10.4

8.8%

Ordinary profit

170.8

185.3

14.5

8.5%

Profit attributable toowners of the parent

115.2

183.0

67.8

58.8%

Earnings per share¥367.06¥582.58¥215.52-

Dividends per share〔Year end〕

¥110
〔¥60〕

¥120
〔¥60〕

¥10
〔-〕

〔-〕

Consolidated payout ratio

30.0%

20.6%

-

-

-

30.4%

-

-

¥/US$

¥110

¥120

¥10

-

¥/Euro

¥139

¥133

(¥6)

-

Net sales

Total return ratio*Both net sales and profit increased.
*The materials handling equipment segment and the car air-conditioning
compressor business have driven the financial results.
*Increased dividends per share from ¥110 to ¥120.
3/32

Segment Information <FY2016>
Net sales [Operating profit](Billion yen)

FY2015FY2016

ChangeVehicleEngine

459.0
192.0

480.0
158.2

21.0
(33.8)

4.6%(17.6%)

Car air-conditioning
compressor

324.6

342.6

18.0

5.6%

Electronics parts,
foundry and others

74.9

64.8

(10.1)(13.4%)

Automobile

1,050.7[35.9]

1,045.7[33.3](5.0)[(2.6)]

Materials handlingequipment

924.9[68.8]

1,004.1[79.7]

Logistics

98.0
[6.2]

Unit sales(Thousand units)
FY2015FY2016

ChangeRAV4Vitz (Yaris)

205
103

201
92

(4)
(11)

(0.5%)

Vehicle

308

293

(15)

79.2
[10.9]

8.6%

DieselGasoline

355
213

242
192

(113)
(21)

86.9
[5.2]

(11.1)[(1.0)](11.3%)Engine

568

434

(134)

29,32030,370

1,050

Textile machinery

68.1
[2.6]

65.6
[4.1]

(2.5)
[1.5]

(3.7%)

Car air-conditioning
compressor
Materials handlingequipment

222

239

17

Others

24.7
[3.7]

26.4
[4.8]

1.7
[1.1]

6.7%

Air-jet loom

5.8

6.2

0.4

Total

2,166.6[117.5]2,228.9[127.9]62.3[10.4]

2.9%

Vehicle:Although unit sales decreased, production of RAV4 Hybrid led increase in net sales.
Engine:Net sales decreased due to unit sales decrease of KD diesel engines.
Car air-conditioning compressor :Net sales increased thanks to unit sales increase mainly for outside Japan.
Materials handling equipment:Net sales increased by increase of unit sales as well as contribution of
newly consolidated US sales finance and Tailift.

4/32Changes in Operating Profit and Ordinary Profit
Year-on-year comparison (FY2015 and FY2016)
Ordinary profit: ¥14.5 billion increase
Operating profit: ¥10.4 billion increase (from ¥117.5 billion to ¥127.9 billion)+6.3(11.4)(Billion yen)

+12.6
+14.5
Increasein salesvolume*170.8

Positive
impact ofexchangerate
fluctuations(6.6)
Increasein labor
cost

(5.0)
Increase indepreciation Increase in
expensesand others

Cost
reduction

+33.4

+4.1

185.3

Changes in the
net amount of
non-operating
profit and nonoperating
expenses(23.0)FY2015*Cost reduction and favorable results of the materials handling equipment segment
and car air-conditioning compressor business contributed to the increase of
consolidated profit.
*Labor cost and depreciation increased due to our aggressive sales increase activities.

+4.1
FY2016*Includes ¥2.5
billion exchange
conversion gain on
operating profit
outside Japan.
5/32

Performance <FY2016>(Billion yen)

FY2015FY2016

ChangeInvestments intangible assets

126.3

75.4

(50.9)(40.3%)

Depreciation

70.7

77.3

6.6

9.3%

Investments in tangible assets in the Automobile segment decreased, mainly for the car
air-conditioning compressor and engine businesses.
*FY2016 depreciation continued to increase because of investments in tangible assets andother factors in FY2015.

6/32

Performance <FY2016>(Billion yen)

As of March
31, 2015

As of March
31, 2016

Total assets

4,650.8

4,199.1(451.7)(9.7%)

Total net assets

2,425.9

2,113.9(312.0)(12.9%)

Total net assets
per share¥7,500.16¥6,481.97(¥1,018.19)-

Equity ratio

50.7%

48.5%

-

-

Consolidated
subsidiaries

214

214

-

-

Change*Total assets and total net assets decreased due to a decrease inmarket value of investment securities.

7/32

Performance <FY2017 Forecast>
FY2016FY2017(Billion yen)

Change2,228.9

2,200.0(28.9)(1.3%)

Operating profit

127.9

120.0

(7.9)

(6.2%)

Ordinary profit

185.3

177.0

(8.3)

(4.5%)

Profit attributable toowners of the present

183.0

120.0

(63.0)(34.4%)

Earnings per share¥582.58¥381.89(¥200.69)-

Cash dividends per
share 〔Year-end〕

¥120
〔¥60〕

¥120
〔¥60〕

〔-〕

〔-〕

Payout ratio

20.6%

31.4%

-

-

¥/US$

¥120

¥105

(¥15)

-

¥/Euro

¥133

¥120

(¥13)

-

Net sales

8/32

Segment Information <FY2017 Forecast>
Net sales [Operating profit](Billion yen)

FY2016FY2017

VehicleEngine

480.0
158.2

535.0
160.0

55.0
1.8

11.4%
1.1%

Car air-conditioning
compressor

342.6

330.0

(12.6)(3.7)%

Electronics parts,
foundry and others

64.8

70.0

5.2

7.9%

1,045.7[33.3]

1,095.0

49.3

1,004.1[79.7]

990.0

Logistics

86.9
[5.2]

-

Textile machinery

65.6
[4.1]

56.0

Others

26.4
[4.8]

59.0

32.6

123.3%

Total

2,228.9[127.9]2,200.0[120.0](28.9)[(7.9)](1.3%)

Automobile
Materials handlingequipment

Change(14.1)(9.6)

Unit sales(Thousand units)
FY2016FY2017

ChangeRAV4Vitz (Yaris)

201
92

207
93

6
1

4.7%

Vehicle

293

300

7

(1.4%)

DieselGasoline

242
192

283
217

41
25

Engine

434

500

66

Car air-conditioning
compressor

30,37032,3001,930

Materials handlingequipment

239

244

5

Air-jet loom

6.2

5.0

(1.2)

(14.7%)

Note: FY2017 forecast of Logistics segment is included in Materials handling equipment and Others segments
due to decrease in importance with the sales of shares of subsidiaries.
9/32

Changes in Ordinary Profit and Operating Profit
Year-on-year comparison (FY2016 full year and FY2017 full year forecast)Ordinary profit: ¥8.3 billion decrease
Operating profit: ¥7.9 billion decrease (from ¥127.9 billion to ¥120.0 billion)+12.0(14.6)(Billion yen)

+14.0
+185.3
Cost
reduction(11.0)
Positive
Negative
impact ofimpact ofchanges inexchange
sales volume
rate
and others*
fluctuations(1.7)
Increasein labor
cost

(6.6)

Increase in(0.4) 177.0
depreciation Increase in Changes in the net
amount of nonexpenses operating
profit andand others non-operating
expenses

FY2016+26.0(33.9)(0.4)

FY2017*Includes ¥8.0
billion exchange
conversion loss on
operating profit
outside Japan.
10/32Performance <FY2017 Forecast>(Billion yen)

FY2016FY2017

ChangeInvestments intangible assets

75.4

100.0

24.6

32.6%

Depreciation

77.3

79.0

1.7

2.1%

11/32

II. Review of Medium-Term
Management Plan for
FY2013 to 201612/32

Review of Medium-Term Management Plan for FY 2013 to 2016
1. Net Sales (JPY billion)

2. Operating Profit (JPY billion)

2,166.6 2,228.9 2,230.0[ ] Sales distribution ratio( )OP ratio, [ ] distribution ratio

117.5

107.6

(5.4%)

2,007.8

127.9 130.0(5.7%)(5.4%)

1,543.31,615.2

1,004.1

Others70.0[45.0%](4.5%)

Materials 570.7
Handling [37.0%]
Equipment(4.8%)

79.7[62.3%]

Others
1,045.7

803.1[46.9%]

Auto- [52.0%]
mobile2012

77.0

Materials 38.2
Handling [54.6%]
Equipment

33.3

21.2

[26.0%]

Automobile [30.3%]

13

14

15

16

3. Capital Expenditure
Cumulative total for FY2013 to 16
Approx. JPY 780 billion(Including JPY 400.5 billion for
tangible assets)

Forecast (FY)

2012

13

14

15

16

Forecast (FY)4. ROA and ROE for FY2016
ROA
ROE

Plan
5.0%
10.0%

Result7.3%
20.8%*: Including extraordinary profit gained from sales of shares ofAsahi Security Co., Ltd. and Wanbishi Archives Co., Ltd.
*: Investment securities are calculated on the basis of purchase prices.

*Steadily expanded businesses with our mainstay Automobile andMaterials Handling Equipment businesses.
*Net Sales and Operating Profit almost reached to the forecast althoughexpenses increased due to aggressive investments.
13/32

III. Future Actions
1. Concentration and Selection of Businesses
2. Toward Vision 2020

14/32

Promoted concentration and selection of businesses
FY2008 to 2013

Disengagement from consumer electronics including ST Liquid
Crystal Display Corporation and TIBC Corporation
Restructuring of logistics business including FUJI LOGISTICS CO., LTD.
and Mail & e Business Logistics Service Co., Ltd.
FY2016
Asahi Security Co., Ltd.
*Cash collection and delivery andcash proceeds management services*Security guard services for cash machines-> SECOM CO., LTD. has
acquired Asahi

Wanbishi Archives Co., Ltd.
*Data storage, management, collection anddelivery services*Business data backup services-> NIPPON EXPRESS CO., LTD. has
acquired Wanbishi*Initially aimed growth of consigned operation of distribution centers.
*Certain degree of achievements through support for improvements, etc.

We have decided to sell shares of both companies in consideration of theirbenefit of further growth; they can anticipate greater synergy with SECOM and
NIPPON EXPRESS respectively.
Aim for further growth by continuing concentration and selection of businesses
in consideration of affinity with materials handling equipment and automobile
related fields.
15/32

III. Future Initiatives
1. Concentration and Selection of Businesses
2. Toward Vision 2020
1) Ideal form
2) Our initiatives

16/32

Further strengthen our initiatives to realize Vision 2020
Support industries and social foundation around the world by continuously supplying
products/services that anticipate customers’ needs in order to contribute to a comfortablesociety and enriched lifestyles

To contribute to a comfortable society and enriched lifestyles
Solution

Key components

Car AirLogistics Conditioning
Compressor

New

Materials productHandling
Equipment

Textile Machinery

Mobility
VehicleNew
product

Car Electronics

New
product

New
product

New
product

EngineEnergy, Environmental protection
3Es ( 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 asociety with minimum
environmental impact throughtechnological innovation inenvironment/energy areas

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

Develop businesses allover the world andmeticulously respond toeach region’s customer
needs

Maintain the world’s
highest-level SEQCD byimproving our businessbased on team strengthand TPS

Strengthen growthpotential by leveraging
synergies among
divisions, strategic M&As
and alliances

17/32

III. Future Initiatives
1. Concentration and Selection of Businesses
2. Toward Vision 2020
1) Ideal form
2) Our initiatives

Materials Handling Equipment
Car air-conditioning Compressor
Engine, Car Electronics
18/32

Materials Handling Equipment
Our recent lift truck sales and forecast
Aim to increase unit sales exceeding previous year by leveraging our strong product appeal aswell as sales and after-sales service network amid weaker lift truck market is expected due toslow down of global economy.
(Thousand units)

Global
239

Japan
244

40

39

FY2016FY2017

North America
Promote sales
expansion including
environmentally highperformance products
to achieve unit sales
on par with FY 2016
amid market
slowdown is expected.

Europe75

FY2016FY2017FY2016

Amid the stable
market trend,
promote aggressive
sales activities
including further
enhanced response
to large fleet
FY2017 customers.

86

89

FY2016FY2017

Aim for sales
expansion by further
strengthening ties ofToyota and Raymondbrands in themoderate market
growth.

China, Others

78

38

38

FY2016FY2017

Promote sales
activities appealing
our quality and aftersales service
capabilities where
decrease of Chineseand other markets
are expected.

19/32

Lift truck market forecast for 2020

Materials Handling Equipment

Moderate growth is expectedthanks to emerging countries’
economic growth.

Picture of mid-term growth
Our market share(%)
30

Our initiatives

20

Aim for further growth bymarket share increase andexpansion of value chain

15

Strengthen lift truck business toincrease market share

25(Thousand units)*Introduce environmentally high performance
products*Sales expansion activities with our strong
network*Further enhance our response to large fleet
customers*Sales expansion activities by leveraging
advantages of TICO and Tailift

Lift truck market*

1,200
1,000

Other

800

China

600

EuropeExpansion of value chain

400

North
America
Japan

200
0
2011

2012

2013

2014

2015

2016
(Forecast)2020 (CY)(Forecast)(*: Estimate by TICO)*Enhance logistics solution*Further improve after-sales service quality
at global basis*Generate synergy effects with Cascade*Strengthen sales finance business
20/32

Materials Handling Equipment
Introduction of new lift trucks with excellent environmental performancedeveloped centered on 3Es

Fitted with in-house developed clean diesel engine
and turbocharger on internal combustion lift truck*Achieved lower fuel consumption and emission

Diesel engine lift truck
FY 2014-2015

Fitted with in-house developed motor on electric lift
truck which demand is growing especially indeveloped countries
New 3-wheel electric lift truck
for European market
FY 2016*Class leading operating time
*Improved operability inside warehouse thanks to its ability toturn in a small radius

Increase of feasibility test of fuel cell lift truck
Practical use model offuel cell lift truck
Planned in FY 2017

*Cost reduction and increase of reliability by fitting with the
dedicated FC system for lift truck using the same fuel cellused in the Toyota MIRAI FCV

21/32

Materials Handling Equipment
Strengthening logistics solution
Increase customers’ logistics efficiency by offering logistics
solution combining hardware and software
HardwareIndustrial vehicles including lift trucks,
Materials handling systems

Software
Kaizen (improvement) know-how
cultivated through logistics businesses

Logistics improvement by telematics “TOYOTA I_Site”
Case example of Albert Heijn, the Netherlands
Supermarket chain with more than 900 stores and 6 distribution centers.

TOYOTA I_Site*By enabling to monitor multiple fleet, contributed to higher efficient
vehicle management and lower environmental load.
*Such functions as record of shocks and pre-operational checks raisedsafety awareness of operators and led damage reduction.

Launch of telematics in Japan on new electric lift truck“GENEO-Ecore”

GENEO-Ecore*Support to build efficient logistic operations by visualizing
lift truck data
*Plan to increase models fitted with telematics
22/32

Materials Handling Equipment
Strengthen materials handling equipment sales, after-sales services and key components
Strengthen sales and after-sales services capabilities
Further improve our response to customers by enhancement of sales and after-sales services network*Integration of sales channels as well as making distributors into subsidiaries in developed countries*Completed integration of separately operated sales channels for Toyota–
and BT-brand sales channels in major 31 countries in Europe*Made important distributors into subsidiaries in the U.S.A.
*Expanded sales and after-sales services network in emerging countries

Upgrade after-sales service capabilities by continuous training fortrainers and other efforts.

Training at TMHG Global Training Center

Enhancement of materials handling equipment related fields
Acquired Cascade Corporation, a U.S. lift truck attachment
manufacturer in 2013.
*Better respond to customers’ various logistics needs by leveraging
broader business capability.
Lift truck attachment
23/32

Materials Handling Equipment
Strengthened sales finance business
Gradually expanding sales
finance operations
2013 France
Mexico2015 U.S.A.
2016 Germany(JPY billion)

April 2016
Established German branch of our
European sales finance entity andstarted its operation.
Acquired financial asset for materials
handling equipment from Toyota’s financial
management company.

Financial asset balanceStrengthen sales finance business globallyby expanding activities in Europe andemerging countries.

1,000
800
600
Europeand others

400
200

North America

0
20142

20152

2016

2021 (FY)Aim to expand value chain including after-sales
services and used vehicles to better respond tovarious customers’ needs by strengthening
sales finance capability.

24/32

Materials Handling Equipment
Further enhance our strength of materials handling equipment business indeveloped countries and better respond to needs in emerging countries
Continue activities in developed countries where our (%) Our market share in Japan, US and Europe
30
core markets*Introduce new products with high environmental
performance*Sales and after-sales activities by leveraging enhanced
network*Strengthen response to large fleet customers
25*Logistics solution proposals combining hardware and2011 2012 2013 2014 2015
(CY)
software(Estimate by TICO)

Enhancement of activities in emerging countries*Plan to enhance product lines and sales activities by leveraging advantages of Tailift(Taiwan) and TICO
Advantage of TICO
Advantage of Tailift
Quality focused
Middle- to low-pricemanufacturing and highly
range products
efficient production

25/32

III. Future Initiatives
1. Concentration and Selection of Businesses
2. Toward Vision 2020
1) Ideal form
2) Our initiatives

Materials Handling Equipment
Car air-conditioning Compressor
Engine, Car Electronics
26/32

Car air-conditioning Compressor
Our recent compressor sales and forecast
Plan to increase unit sales backed by past order growth although both developed and emerging
countries markets are expected to be on par with previous year due to weaker automobile sales.
(Thousand units)

Global32,30030,370

Japan
5,280

5,600

FY2016FY2017

Europe8,910

FY2016FY2017FY20168,900

FY2017

North America
Amid similar market
size is forecasted
as the previous
year, we expect
increase of unit
sales thanks to pastsales expansion
activities.
Though the market
is expected to be on
par with the previous
year, we expect
positive effect ofpast order increase
leveraged ourstrength ofenvironmental
performance.

9,840

10,700

Expect increase ofunit sales led byvariable
displacement typewhile the market
growth slows down.
FY2016FY2017China, Others
6,340

FY2016

7,100

Plan sales
expansion mainly toforeign car
manufacturers inmoderate market
growth is expected.

FY201727/32

Car air-conditioning Compressor

Compressor market forecast in FY2021

Picture of mid-term business growth(%)
50

Our market share**Automobile sales increase led by the
US, China and emerging countries*Increase of car air-conditioner
adoption rate45

Our initiatives

Aim further sales increase
backed by more stringent fuelefficiency regulations

40

35(*: Estimate by TICO)(Thousand units) Car air-conditioning Compressor

80,000market* and our unit sales

Market60,000
TICO*Further enhance performance of variabledisplacement type and sales expansion activities
leveraging its product appeal.
*Sales expansion of electric type backed byelectrification of vehicles.

Global production and supply structure

40,000

Challenge to 40,000
thousand units

20,0000

Response to increasing needs for better
fuel efficiency

2012

2013

2014

2015

2016

2021

(FY)

*Continuous improvement of productivity focusing
on production bases outside Japan.
*Increase production and other capabilities of
production bases outside Japan, requiring
less support from mother plant in Japan.

(*: Estimate by TICO)

28/32

Car air-conditioning Compressor
Our initiatives of Compressor business toward increasing
customer needs for better fuel efficiency
1. Sales expansion of variable displacement type
More stringent automobile fuel efficiency(g/km) (CO2 emission) standard in the world

240
200

Fitted with engine driven cars,
automatically adjust cooling
performance according to outside
temperature and engine load,
achieving high fuel efficiency

More stringent standard
both in developed andemerging countries

CO2 emission*

Expanded sales of variabledisplacement type by leveraging
its strong product appeal

160
120

FY 2016
30,370 thousand units

80
40

FY 2012
21,550 thousand units
Enacted
Plan

0

68%

59%
(CY)

2005 2010 2015 2020 2025 2030 2035
*g-CO2/km

Variable

FixedElectric

Europe Japan USA China India

Based on materials of various research institutes,
and fuel consumption testing of each country

29/32

Car air-conditioning Compressor
Initiatives in Compressor business toward increasing customer
needs for better fuel efficiency
2. Further increase product appeal of electric type together withvariable displacement type

*Realized such high product appeal asfuel efficiency by collaboration between
Compressor and Electronics divisions.

ESB20 electric compressor

Realized both fuel efficiency
and comfort at high levelby enabling the use of car air-conditioner
while engine stops when start-stop motion
activates, or when run by electricity,by acquiring power from motor.

Toyota New Prius

Highly evaluated by customers for ourcomprehensive product appeal
30% higher cooling
performance
More compact andLighter weight

8% lower electricity
consumption
Betterquietness

Betterdurability*Our electric type compressor holds
more than 70% of global market share,
fitted with all Toyota cars and other major
car manufacturers’ models in the world.
*Electric type compressors are applicable
to all electric driven cars such as HEVs,
PHEVs, EVs and FCVs.

Steadily increase unit sales
responding to electrification of cars

30/32

Car air-conditioning Compressor
Global production and supply structure
Electric type
Variable displacement type
Fixed displacement type

Production volume by region
FY2016 (Thousand units)

FY201230,37021,550Indonesia

Indonesia
インド
ネシア

China

Germany

14,000China

North America

Japan

GermanyJapan

12,000North
America(Thousand units)

4,000

Germany
4,000

Indonesia

4,000

China

10,000

North America 10,000

8,000

8,000

6,000

6,000

4,000

4,000

2,000

2,000

2,000

2,000

2,000

0

0

0

0

0

2012

2016 (FY)

2012

2016

Japan

2012

2016

2012

2016

2012

2016

Strengthened production and supply structure outside Japan(Production capacity increase, Response to growing needs for variable displacement type,
Increase of local procurement ratio)

Further improve production and capabilities including productivity of production
bases outside Japan, requiring less support from mother plant in Japan.
31/32

Engine, Car Electronics
Engine*Started production of GD diesel engine fitted with turbocharger which
TICO participated in its development. (2015)*Started production of GD diesel engine for IMVs at our Indiansubsidiary, Toyota Industries Engine India Pvt. Ltd. (March 2016)*Consolidate Toyota Group’s diesel engine development and production
to TICO in the future.
ＧＤ diesel engine

Car Electronics

DC-DC converter*Our DC-DC converter, AC inverter and rear-wheel drive inverter for
four-wheel drive are fitted with new Prius. (2015)*Developed new charging stand as a standard model of the charging
infrastructure. (2015)*Further increase the role in non-automotive products including
materials handling equipment through collaboration with otherbusiness divisions.

AC inverter

Rear-wheel drive inverter
for four-wheel drive

32/32

Cautionary Statement with Respect to
Forward-Looking Statements
This presentation contains projections of business results as well as statements regarding businessplans, forecasts, strategies, and other forward-looking statements that are not to be taken as
historical fact. Projections and forward-looking statements are based on the current expectations
and estimates of Toyota Industries and its Group companies. All such projections and forwardlooking statements are based on management’s assumptions and beliefs derived from theinformation available to it at the time of producing this report and are not guarantees of future
performance. You should also be aware that certain risks and uncertainties could cause the actual
results of Toyota Industries and its Group companies to differ materially from any projections or
forward-looking 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.