FY2019
Financial Results
May 8, 2019

I. Financial Summary
1. Points of financial results
2. Financial results for FY2019
3. Financial forecast for FY2020

1/39

Points of Financial Results for FY2019
1. Net sales increased while profit decreased from previous
fiscal year. Without one‐time factor in previous fiscal year,
achieved increase in both net sales and profit.

2. Dividends for FY2019 is ¥155, ¥5 increase from previous
fiscal year. Plan of dividends for FY2020 is ¥160, ¥5 increase.

3. Increase in net sales and profits is expected for the
FY2020 forecast.

2/39

Performance <FY2019>
FY2018(Billion yen)

FY2019Change2,003.9

2,214.9

211.0

10.5%

Operating profit

147.4

134.6

(12.8)(8.7%)

Profit before income taxes

209.8

202.2

(7.6)

(3.6%)

Profit attributable toowners of the parent

168.1

152.7

(15.4)(9.2%)

Earnings per share¥541.67¥491.97(¥49.70)‐

Dividends per share[Year end]

¥150
[¥80]

¥155
[¥80]

¥5
[¥‐]

‐
[‐]

27.7%*

31.5%

‐

‐

Net sales

Payout ratio* 30.4% if the effect of the US Tax Cuts and Jobs Act is not counted.

¥/US$

¥111

¥111

¥0

‐

¥/Euro

¥130

¥128

(¥2)

‐

‐ Net sales increase thanks to favorable results in Materials Handling Equipment segment including
increase of unit sales, sales increase of overall value chain, and growth of logistics solutions.
‐ Profit decrease due to one‐time effect of changes in retirement benefit plan in the previous
fiscal year.
‐ Dividends for FY2019 is ¥155, ¥5 increase from previous fiscal year.
3/39

Segment Information <FY2019>
Net sales [Operating profit](Billion yen)

FY2018FY2019ChangeVehicleEngine

72.1
98.7

82.4
108.4

10.3
9.7

14.3%
9.9%

Car Air‐Conditioning
Compressor

351.4

346.2

(5.2)

(1.5%)

Electronics parts,
Foundry and others

72.7

73.6

0.9

1.2%

Automobile

595.0[29.6]

610.7
[6.8]

15.7
[(22.8)]

2.6%

Materials Handling
Equipment

1,283.0[104.9]1,466.6[114.6]

183.6
[9.7]

14.3%

Textile Machinery

65.5
[6.1]

76.3
[7.3]

10.8
[1.2]

16.5%

Others

60.3
[6.6]

61.2
[5.9]

0.9
[(0.7)]

1.4%

Total

2,003.9[147.4]2,214.9[134.6]211.0[(12.8)]

10.5%

Unit sales(Thousand units)
FY2018FY2019ChangeRAV4Vitz (Yaris)

205
93

235
50

30
(43)

Vehicle

298

285

(13)

DieselGasoline

330
244

375
218

45
(26)

Engine

574

593

19

33,42032,980(440)

Materials Handling
Equipment*

277

300

23

Air‐jet loom

6.3

9.0

2.7

Car Air‐
Conditioning
Compressor* Sales units figures include Tailift.

Vehicle:Net sales increased as production of new RAV4 commenced.
Engine:Net sales increased by unit sales increase of A25A gasoline engines and GD diesel engines.
Car Air-Conditioning Compressor :Net sales decreased as unit sales in Europe and Japan decreased, although unit sales
in emerging countries including China increased.
Materials Handling Equipment:Net sales increased by unit sales increase in each region as well as sales increaseof logistics solutions business.
4/39

Changes in Operating Profit
Year-on-year comparison (FY2018 and FY2019)
Operating profit: ¥12.8 billion decrease (from ¥147.4 billion to ¥134.6 billion)+14.3（11.5）(Billion yen)

（7.9）

+27.2

Increase in
Cost
raw material
reduction
costs
Increase indepreciation

147.4 （14.3）

（7.4）
（2.2）
Increase inlabor cost

One‐time effect ofchanges inretirement
benefit plan inprevious fiscal year

(14.3)

Sales
efforts+41.5（11.0）

Negative
impact ofexchange rate
fluctuations Increase in
expensesand others

134.6(40.0)FY 2018

FY 2019¥1.5 billion of substantial profit increase- Increases of raw material costs and in depreciation as well as changes inretirement benefit plan in the previous fiscal year negatively affected on profit,
offsetting sales efforts and cost reduction of each business.
5/39

Performance <FY2019>(Billion yen)

FY2018FY2019ChangeInvestments intangible assets

115.4

113.7

(1.7)

(1.5%)

Depreciation

77.7

85.6

7.9

10.2%

‐ Investments in tangible assets in total remain the same as the previous fiscal
year, as although those in the Vehicle business decreased, those in theEngine and Car‐Air Conditioning Compressor businesses increased.

6/39

Performance <FY2019>(Billion yen)

As of March
31, 2018

As of March
31, 2019

Total assets

5,258.5

5,261.1

2.6

0.1%

Total equity

2,633.8

2,561.9(71.9)(2.7%)¥8,223.82¥7,986.59(¥237.23)

‐

48.6%

47.1%

‐

‐

254

254

‐

‐

Equity attributable toowners of the parent
per share
Percentage of equity
attributable to owners of theparentConsolidated subsidiaries

Change- Total assets remain the same as the previous fiscal year, as tradereceivables increased while the market value of investment
securities decreased.
7/39

Performance <FY2020 Forecast>(Billion yen)

FY2019FY2020Change2,214.9

2,300.0

85.1

3.8%

Operating profit

134.6

145.0

10.4

7.7%

Profit before income taxes

202.2

208.0

5.8

2.9%

Profit attributable toowners of the present

152.7

157.0

4.3

2.8%

Earnings per share¥491.97¥505.66¥13.69‐Dividends per share[Year‐end]

¥155
[¥80]

¥160
[¥80]

¥5
[¥‐]

‐
‐

Payout ratio

31.5%

31.6%

‐

‐

¥/US$

¥111

¥110

(¥1)

‐

¥/Euro

¥128

¥125

(¥3)

‐

Net sales

8/39

Segment Information <FY2020 Forecast>
Net sales [Operating profit](Billion yen)

Unit sales(Thousand units)

FY2019FY2020ChangeVehicleEngine

82.4
108.4

76.0
130.0

(6.4)
21.6

(7.8%)
19.9%

Car Air‐Conditioning
Compressor

346.2

350.0

3.8

1.1%

Electronics parts,
Foundry and others

73.6

73.0

(0.6)

(0.8%)

Automobile

610.7
[6.8]

629.0

18.3

Materials Handling
Equipment

1,466.6[114.6]

1,549.0

Textile Machinery

76.3
[7.3]

62.0

Others

61.2
[5.9]

Total

2,214.9[134.6]FY2019FY2020ChangeRAV4Vitz (Yaris)

235
50

275
‐

40
(50)

Vehicle

285

275

(10)

3.0%

DieselGasoline

375
218

429
399

54
181

5.6%

Engine

593

828

235

(14.3)(18.8%)Car Air‐
Conditioning
Compressor

32,98034,000

1,020

60.0

(1.2)

(2.0%)

Materials
Handling
Equipment*

300

306

6

2,300.0[145.0]85.1[10.4]

3.8%

Air‐jet loom

9.0

5.7

(3.3)

82.4

* Sales units figures include Tailift.

9/39

Changes in Operating Profit
Year‐on‐year comparison (FY2019 full year and FY2020 full year forecast)
Operating profit: ¥10.4 billion increase (from ¥134.6 billion to ¥145.0 billion)(Billion yen)

+14.0

(8.0)
(4.4)
Increase inlabor cost

+18.0
Cost
reduction

134.6

(4.4)

Increase in
raw material Increase incosts
depreciation

Sales
efforts+32.0
FY 2019

(3.0)

(1.8)

145.0

Negative
Increase inimpact of
expensesexchange rate and others
fluctuations(21.6)FY 2020

10/39

Performance <FY2020 Forecast>(Billion yen)

FY2019FY2020ChangeInvestments in tangible
assets

113.7

105.0

(8.7)

(7.7%)

Depreciation

85.6

90.0

4.4

5.1%

11/39

II. Revision of Corporate Vision

12/39

1. Review of Vision 2020

13/39

1. Review of Vision 2020

14/39

1. Review of Vision 2020

Growthstrategies

15/39

2. Revision to Vision 2030

‐ Tide of the fourth industrial revolution such as AI, big data, IoT and robotics‐ Increase of geopolitical risks as trade issues and regional conflicts‐ Greater social demand for non‐financial results including ESG and SDGs
‐ Expanded TICO Group structure and business‐ Vision is a guideline of mid‐ to long‐term aspired direction, andfundamentals remain the same
‐ Based on the previous Vision, minor revision is made as necessary
considering recent external and internal changes
16/39

3. Vision 2030

Publica pickup

Type G automatic loom
LA type internal
combustion lift truck

Fixed displacement typecar air‐conditioning
compressor

S type gasoline engine

17/39

3. Vision 2030
Contribute to making the earth a better place to live, enrich lifestyles, andpromote a compassionate society by supporting industrial and social
infrastructure around the world through the continuous supply of
products/services that anticipate customers’ needs.

18/39

3. Vision 2030

TICO Group contributes towards the achievement of the United Nations’Sustainable Development Goals (SDGs) by striving to resolve social issues
through corporate activities.

Chosen as an A‐List company forboth the “Climate Change” and“Water Security” sectors in 201819/39

3. Vision 2030
FY 2031¥4 trillion‐ Net sales
over‐ Operating profit over ¥400 billion
10%‐ Operating profit margin**‐ ROA 5% or more, ROE 10% or more
* Investment securities are calculated on the basis of purchase prices.

20/39

III. Our Business Initiatives
Materials Handling Equipment
Car Air‐Conditioning Compressor
Vehicle / Engine
Textile Machinery
1. Surrounding Environment

4. Strengths of Lift Truck Business2. Products and Services

5. Strengths of Logistics Solutions Business

3. Business Portfolio

6. Case Examples
7. Mid‐ to Long‐term Business Growth

21/39

Materials Handling Equipment
1. Surrounding Environment
Quantitative and qualitative expansion of roles of logistics
 Increase of logistics volume backed by global business growth Growth of needs for more efficient logistics‐ Labor shortage centered on developed countries‐ Increase of labor cost in developing countries‐ Tightening of regulations i.e. energy saving, safety, work rules

Growth of e‐commerce market

Intensifying move ofpeople and goods

Better Convenience

Smaller package

Increase of large
distribution centersand growth in size

Increase of air flights
and baggage

Increase oflogistics volume

Process of wide
variety of goods insmall quantities

Frequent dispatch
and delivery

Expansion of existing
airports, construction oflarge airports
Increase of land and sea
cargo transports
22/39

Materials Handling Equipment
2. Products and Services
Total offering of equipment andsystem used at logistics sites

Internal combustion
lift truck

Electric lift truck

Lift truck and various
equipment
Reach typeelectric lift truck

Warehouseequipment

Storage
Loading and unloading

Shuttle type AS/RS*

Transfer
After‐sales services Fleet management
Spare parts
Warehouse management
Telematics

Value chain

Receiving and
DeliverySales finance Components
such asattachments

SorterSorting

Unit type AS/RS

SoftwareAutomatic Guided Vehicle*: Automatic Storage and Retrieval System

Automatic
lift truck

Logistics solutions
23/39

Materials Handling Equipment
3. Business Portfolio
Pursue stable business growth intandem with flow‐ and stock‐typebusinesses
Net sales¥1,466.6 billion

Logistics Solutions
Business Approx. 20%
Value Chain of Lift
Truck BusinessApprox. 40%

Sales finance,
Components
includingAttachments
After Sales
Services,
Spare Parts
and others

Unit Sales of Lift
Truck and other
Equipment

Approx. 40%
FY 2019

Logistics Solutions‐Advantages in e‐commerce andbaggage handling fields that are lessaffected by fluctuations of economy
Value Chain‐Stable earnings and gaining after sales
services contracts through sales finance‐Retention of customers by after sales
services leveraging global networks‐Leading market share and highprofitability of attachment businessbased on customization capability
Lift Truck‐Boost‐up of demand due to labor cost
increase in developing countries, andlabor shortage in developed countries‐Strong demand thanks to its flexibility,
regardless of customer’s business or
way of use
24/39

Materials Handling Equipment
4. Strengths of Lift Truck Business<Equipment> Differentiation of product capability byin‐house development of key
components
 Broad product lines including market
leading lift trucks<After Sales Services> Well experienced service technician withhigh skills
 Efficient and advanced fleet management
as well as services by utilizing IT<Components>
 Customization capability utilizing theadvantage of wide variety of customer
base in attachment business<Sales Finance> Supporting customers for life‐cycle ofproducts<Network>
 Well‐developed sales and after sales
services network throughout the world<Solution Capability>
 Solution offering at operational fields
based on long‐term experience and TPS**: Toyota Production System

Initiatives for the growth
By leveraging our comprehensive strength of value chain as a whole, aim
further business growth in collaboration with our Logistics Solutions Business
25/39

Materials Handling Equipment
5. Strengths of Logistics Solutions Business<Products>
 Wide range of logistics systems<System Capability>
 Superior software development
capability<Network> Operational structure with global
coverage<Customer Industries> Well‐balanced customer industries as
e‐commerce, parcels and airports<Collaboration>
 Synergy effects of threecomplementary companies Collaboration with market leading Lift
Truck Business

Net Sales of Logistics
Solutions BusinessInitiatives for the growth
Maximize synergy effects by cooperation between thethree companies and clarification of roles, such as
areas and customer’s industry and size, inconsideration of each company’s strengths

800
600(¥ billion)

400

Acceleration of development of autonomous
driving as core technology

200
0
FY 2018

FY 2019

FY 2031(Targets)

26/39

Materials Handling Equipment
6. Case Examples

Development of autonomous driving technology for practical use
1) Autonomous vehicle ofbaggage handling system

Starts practical use at Rotterdam
The Hague Airport, trial use at
Hong Kong International Airport

2) Automatic driving tow tractor

Conducts test driving at the Saga
Airport in Japan in March 2019,
continues further development
aiming practical use in 2020
27/39

Materials Handling Equipment
7. Mid‐ to Long‐term Business Growth
Aim for global No.1 comprehensiveness by further enhancing strengths ofboth Lift Truck and Logistics Solutions Businesses while acceleratecollaboration of the two businesses[Logistics Solutions Business]

Net Sales
Growth Image‐Take increasing needs of logistics solutions
by leveraging strengths of three companies‐Response to needs for automation bycooperation with Lift Truck Business(¥ billion)[Lift Truck Business]

1,466.6‐Product development by open innovation
utilizing the latest technologies‐Enhance marketing and sales responding tocircumstances of each market and area
‐Further expansion of value chain‐Thorough cost reduction‐Increase of local procurement ratio‐Enhance capability of middle to low priceproducts market
and others

809.2

FY 2014

FY 2019

FY 2031
28/39

III. Our Business Initiatives
Materials Handling Equipment
Car Air‐Conditioning Compressor
Vehicle / Engine
Textile Machinery
1. Our Compressor Sales and Forecast
2. Compressor Market and our Initiatives
3. Initiatives of R&D
4. Initiatives of Production
5. Mid‐ to Long‐Term Initiatives

29/39

Car Air‐Conditioning Compressor
1. Our Compressor Sales and Forecast
While automobile sales growth slows down, aim for further sales expansion
centered on North America, Europe and China and Others regions backed by pastincrease of order intake(Thousand units)

Global
33,42032,980

Japan

North America

34,000
5,810

5,830

(Major Increase)

10,56010,680

Ford
Honda

Honda

FY
2019
18年度

18年度
FY
2019

FY
2020
19年度
(Forecast)

Europe
8,470

19年度
FY
2020
(Forecast)

China and Others

9,050(Major Increases)

8,140

8,440
(Major Increases)

ToyotaChina local
brandsPeugeot
BMW

FY 2018 18年度
FY 2019 19年度
17年度
FY 2020(Forecast)

FY 2019
18年度

FY 2020
19年度(Forecast)(Major Increases)

FY
2019
18年度

FY 2020
19年度(Forecast)

30/39

Car Air‐Conditioning Compressor
2. Compressor Market and Our Initiatives(Thousand units)

10,000100,000

Compressor market*
and our unit sales

Electric
driventype

8,000
80,000Enginedriventype
Electric
driventype

60,0006,000
Compressor market
4,000
40,0002,000
20,000Enginedriventype

Our unit sales02016 20162017 20172018 20182019 202020152019*: Estimate by TICO

2031
202Ｘ

(FY)

Market trend●Sustainable growth of compressor

market is expected‐Increase of automobile sales‐Increase of car‐air
conditioner fitted ratio●Although electrification of

automobile is expected in mid‐ tolong‐term, its pace is uncertain

Our initiatives[R&D] Introduce such electrical type with low radio wave noise and superior inquietness into European and Chinese markets.
[Production] Build stronger production structure responding to volume fluctuations of
fixed‐displacement, variable‐displacement and electric types withminimum investments.
31/39

Car Air‐Conditioning Compressor
3. Initiatives of R&D
Differentiation of R&D processes to meet respective needs of electric driven vehicles
from HEVs to EVs
Common initiatives for all HEVs, PHEVs and EVs

Initiatives focused on PHEVs and EV

Pursuance of quietness

Reduction of radio wave noise‐Sensory assessment of quietness throughactual driving in the proving ground‐Quantitative experiment of quietness in theinsulated wind tunnel experiment facility
that recreates the actual driving conditions‐Leveraging our simulation technology, swiftly
conduct vehicle conformance designing forvarious types of vehicles on radio wave noise
which is typical for EVs‐Proposal of problem solution procedure to
car manufacturer by leveraging analytic
capability built through development ofvariety of electric types[Radio wave

[Newly opened Kameyama Proving Ground][Analysis]

anechoic chamber]

32/39

Car Air‐Conditioning Compressor
4. Initiatives of Production
Flexibly respond to volume fluctuations of compressors for both engine‐ and
足元の取り組み（生産）electric‐driven vehicles

Further precise machining that is also
important for electric type

Response to production increase withminimum investment‐Realizing high‐speed and highly precise
machining by in‐house spindles, cutting tools
and production facilities‐Established gradual production expansion
structure by adding certain units in production
lines

Scroll rotor for electric
type compressor
High precision
machining machine

Facilities

Electric compressor
High‐speed spindle

Production
volumeExpansion of production capacity

Year

SpindlesCutting tools

Superior cutting
ability tools

Adds units in accordancewith production volume

35 thousand
units/month

70 thousand
units/month

33/39

Car Air‐Conditioning Compressor
5. Mid‐ to Long‐Term Initiatives
Expansion of business field by leveraging core technologies‐Increase of importance of cooling such components as electric devices
and batteries which generate heat
Maximize function of electric devices by superior cooling performance‐Change of element technologies for driving
Utilize our core technologies such as compression aiming to expand ourbusiness field to driving components

FCVs
Battery
Cooling

Power
Generation
Electric devices Hydrogen
circulating
Coolingpump for FCVs

Oxygen supply
air compressor
for FCVs

EVs
PHEVs
HEVs

34/39

III. Our Business Initiatives
Materials Handling Equipment
Car Air‐Conditioning Compressor
Vehicle / Engine
Textile Machinery
Vehicle: Strengthen R&D capability based on
manufacturing competenceEngine: Enhancement of competence of engines
including turbo chargers

35/39

VehicleStrengthen R&D capability based on manufacturing competence
Aim to be the leaderof small SUV field

Operational Strategy

Strengthen product planning capability

Development of new
RAV4 upper body

Further enhance our capability offlexible operation from planningand development tomanufacturing

Strengthen R&D
capability

Enhancemanufacturing
competence

Renovation of the plant that keeps
competitiveness for next 30 years‐Environment‐friendly manufacturing line withhighly efficient logistics‐Receives the Toyota Quality Control Award
from Toyota Motor for seven consecutive years‐Differentiation of quality andreduction of manufacturing cost by
development of new
manufacturing technologies

Vehicle Model
StrategyPrevious RAV4(MC Platform)

More value‐added vehicles
New RAV4(K Platform)
Vitz/Yaris(B Platform)

2016

2019

2021

2031 (FY)36/39

EngineEnhancement of competence of engines including turbo chargers

Turbo Chargers

Diesel Engines‐Response to continuous demands forcommercial vehicles and SUVs inemerging countries‐Expansion of production capacity of GD
type‐Further improvement of development
and production efficiency byconsolidating the business from
TMC
Diesel‐Development of next generation
Engines
engines anticipating zero emission
429
375(Thousandunits) 294

330

FY 2017 FY 2018 FY 2019 FY 2020
(Forecast)

GD type diesel engine‐Enhancement of product competitiveness‐Increase of vehicles mounting diesel engines fittedwith our turbocharger‐Entry into gasoline engine field‐Sales expansion to auto (Thousand units)
makers other than TMC
1,000‐Product differentiation bytechnological500
development
together withTurbo
in‐house developed
0
FY 2017 FY 2018 FY 2019 FY 2020
Chargers engine(Forecast)Gasoline
Engines

Gasoline Engines‐Increase of manufacturing unitsof TNGA engines which
succeeds AR type
‐Challenge into productdevelopment

TNGA gasoline engine

37/39

III. Our Business Initiatives
Materials Handling Equipment
Car Air‐Conditioning Compressor
Vehicle / Engine
Textile Machinery
Our Air Jet Loom Expanding Needs of Use

38/39

Textile Machinery
Our Air‐Jet Loom Expanding Needs of Use

Printed board for electric device‐Leveraging its quality, our air‐jet loom
expands its use to industrial fabrics
Blow weft yarn with high accuracy, andweave high quality printed board cloth

Applicable to wide range of materials for
air bags and tents and others‐Demand increase due to more stringent
regulations for discharged water
Replacement from water‐jet looms
Promote sales expansion activities bydifferentiating our superior environmental
performance

Air‐jet loom
39/39

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 to be taken as historical fact.
Projections and forward‐looking statements are based on the current expectations and estimates ofToyota Industries and its Group companies. All such projections and forward‐looking statements are basedon 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 be aware thatcertain 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. Theserisks 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.