FY2020
2nd Quarter
Financial Results
November 1, 2019

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

1/40

Points of Financial Results for FY2020 2Q
1. Net sales and profits increased led by favorable resultsin Vehicle and Engine businesses as well as Materials
Handling Equipment segment.
2. Interim dividends increased to ¥80 per share,¥5 increase compared with previous year.
3. Full year forecast of net sales, operating profit,
profit before income taxes and profit attributable toowners of the parent are revised downward.

2/40

Performance <FY2020 2Q>(Billion yen)

FY2019FY2020Change1,057.0

1,102.9

45.9

4.3%

Operating profit

61.3

71.5

10.2

16.6%

Profit before income taxes

98.3

108.0

9.7

9.8%

Profit attributable to ownersof the parent

74.4

82.2

7.8

10.6%

Earnings per share¥239.65¥265.02¥25.37-

Dividends per share

¥75

¥80

¥5

-

¥/US$

¥110

¥109

（¥1）

-

¥/Euro

¥130

¥121

（¥9）

-

Net sales‐ Net sales and profits increased due mainly to unit sales increase in Vehicle and Engine businesses
as well as initiatives of value chain in the Materials Handling Equipment segment.
‐ Interim dividends increased by ¥5 per share compared with previous year.

3/40

Segment Information <FY2020 2Q>
Net sales [Operating profit](Billion yen)

ChangeFY2019FY2020

VehicleEngine

35.0
49.3

46.3
61.7

11.3
12.4

32.3%
25.1%

Car Air-Conditioning
Compressor

173.7

169.3

(4.4)

(2.5%)

Electronics parts,
Foundry and others

35.4

37.8

2.4

6.8%

293.5
[3.7]

315.2
[12.8]

21.7[9.1]

Materials Handling
Equipment

697.7[52.0]

727.2[54.2]

Textile Machinery

36.0
[3.0]

Others
Total

Automobile

Unit sales(Thousand units)
FY2019FY2020ChangeRAV4Vitz (Yaris)

97
50

165
-

68
(50)

7.4%

Vehicle

147

165

18

29.5
[2.2]

4.2%

DieselGasoline

175
62

198
209

23
147

30.2
[1.0]

(5.8)
[(2.0)](16.2%)Engine

237

407

170

16,67016,200

(470)

29.6
[2.6]

30.2
[3.5]

0.6
[0.9]

1.9%

Car Air-Conditioning
Compressor
Materials Handling
Equipment

144

144

(0)

1,057.0[61.3]

1,102.9[71.5]

45.9[10.2]

4.3%

Air-jet loom

4.1

3.5

(0.6)

Vehicle:Net sales increased as unit sales of RAV4 increased.
Engine:Net sales increased as unit sales of A25A and M20A gasoline and GD diesel engines increased.
Car Air‐Conditioning:Although unit sales in Japan increased, decreases in Europe, North America andCompressor
emerging countries including China led to net sales decrease.
Materials Handling:While unit sales of lift trucks was on par with previous year, initiatives of value‐Equipment
chain contributed to increase of net sales.
4/40

Changes in Operating Profit
Year‐on‐year comparison (FY2019 2Q and FY2020 2Q)
Operating profit ¥10.2 billion decrease (¥61.3 to ¥71.5 billion)(Billion yen)

＋15.2

+4.5
Cost reduction

61.3

+0.4

(3.9)

Decrease in
expenses andothersIncrease indepreciation(3.6)
Negative impact
of exchange rate
fluctuations

(2.4)

71.5

Increase inlabor cost

Sales efforts

+20.1

(9.9)

FY2019FY2020‐ Sales efforts and cost reduction contributed to increase in operating profit despite
increase in depreciation and negative impact of exchange rate fluctuations.

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Performance <FY2020 2Q>(Billion yen)

FY2019FY2020ChangeInvestments intangible assets

58.3

49.4

(8.9)

(15.3%)

Depreciation

40.9

44.8

3.9

9.6%

‐ Although investments in tangible assets in the Materials Handling Equipment
segment increased, those in Vehicle and Engine businesses decreased, resulting
decrease in total.

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Performance <FY2020 2Q>(Billion yen)

As of March 31,
2019

As of September
30, 2019

Total assets

5,261.1

5,464.6

203.5

3.9%

Total equity

2,561.9

2,713.5

151.6

5.9%

Ratio of share of equity
attributable to ownersof the parent

47.1%

48.2%

-

-

254

259

5

-

Consolidated
subsidiaries

Change*Total assets increased due to an increase in market value ofinvestment securities.

7/40

Performance <FY2020 Forecast>(Billion yen)

FY2019Net sales

FY2020ChangePrevious
Forecast

2,214.9

2,220.0

5.1

0.2%

2,300.0

Operating profit

134.6

135.0

0.4

0.2%

145.0

Profit before income
taxes

202.2

200.0

(2.2)

(1.1%)

208.0

Profit attributable toowners of the present

152.7

151.0

(1.7)

(1.1%)

157.0

Earnings per share¥491.97¥486.34(¥5.63)-¥505.66

Cash dividends per
share

¥155

¥160

¥5

-

¥160

¥/US$

¥111

¥107

(¥4)

-

¥110

¥/Euro

¥128

¥118

(¥10)

-

¥125

8/40

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

FY2019FY2020ChangePrevious
Forecast

82.4
108.4

85.0
123.0

2.6
14.6

3.1%
13.4%

76.0
130.0

346.2

338.0

(8.2)

(2.4%)

350.0

73.6

73.0

(0.6)

(0.8%)

73.0

Automobile

610.7
[6.8]

619.0

8.3

1.4%

629.0

Materials Handling
Equipment

1,466.6[114.6]

1,477.0

10.4

0.7%

1,549.0

Textile Machinery

76.3
[7.3]

64.0

(12.3)(16.2%)

62.0

Others

61.2
[5.9]

60.0

(1.2)

(2.0%)

60.0

Total

2,214.9[134.6]2,220.0[135.0]

5.1
[0.4]

0.2%

2,300.0[145.0]

VehicleEngineCar Air‐Conditioning
Compressor
Electronics parts,
Foundry and others

9/40

Segment Information <FY2020 Forecast>
Unit sales(Thousand units)

FY2019FY2020ChangePrevious
Forecast

235
50

310
‐

75
(50)

275
‐

285

310

25

275

375
218

394
419

19
201

429
399

593

813

220

828

Car Air‐Conditioning
Compressor

32,98033,00020

34,000Materials Handling
Equipment

300

298

(2)

306

Air‐jet loom

9.0

6.3

(2.7)

5.7

RAV4
Vitz (Yaris)

VehicleDieselGasoline

Engine10/40

Changes in Operating Profit
Year‐on‐year comparison (FY2019 full year and FY2020 full year forecast)
Operating profit ¥0.4 billion increase (¥134.6 to ¥135.0 billion)+14.0(Billion yen)

(13.0)(7.0)+15.0
Cost reduction Negative impact

of exchange
Increase inrate fluctuations labor cost

134.6
Sales efforts

(4.4)
(2.6)
Increase indepreciation

FY2019

Increase in
raw material
cost

(1.6)

135.0

Increase in
expenses andothers

FY2020+29.0(28.6)
11/40

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%

12/40

II. Our Business Initiatives
Materials Handling Equipment
Automobile‐ Car Air‐conditioning Compressor‐ Vehicle‐ Engine‐ Car Electronics

13/40

Materials Handling Equipment
1. Products and Services
Comprehensive offering of logistics related equipment and system
Logistics solutions

Net Sales in Materials
Handling Equipment Segment
Approximately 80% of net salesconsists of Lift Truck Business

SorterLift rucks and other equipment

Logistics solutions
Approx. 20%

Automated storage andretrieval system

SoftwareSales financing,components and others

Automatic guided
vehicle (AGV)

Sales of lift trucks andother equipment
Approx. 40%

Internal‐combustion
lift truck
Electric lift truck

Value chain in Lift
Truck BusinessApprox. 40%
After‐sales services and others

Reach‐typeelectric lift truck
Sales financing

Attachments andother components

Value chain

After‐sales services
Spare parts

Low lift truck

Fleet management system
Warehouse management system
Telematics
Automated lift truck

14/40

Materials Handling Equipment
2. Current Lift Truck Sales
Surrounding uncertainties affect current lift truck market to remain on par with previous
year. Amid this circumstance, Toyota Industries endeavors sales expansion by leveraging
our strengths of high product appeals and superior after‐sales services.
(Thousand units)

Global
300

2H

156

Japan
298

154

North America

47

50

24

25

23

25

FY19

FY20 (Forecast)

Amid market remains
on par with previous
year, we promotesales expansion
activities byleveraging our welldeveloped network

Europe
95
1H

144

FY19

144

FY20

98

97

49

48

49

49

FY19

FY20 (Forecast)

While market growthshows slowdown,strengthen solution
proposals

China/ Others

98

Enhance after‐sales
services capability
under the market
condition which is
expected to be lower
than previous year

51

54

44

44

FY19

FY20 (Forecast)(Forecast)

60
32

28
FY19

53
27
26

Promote appeals ofsales quality and after‐
sales services
capabilities amid thestable market
condition centered on
China

FY20
(Forecast)

15/40

Materials Handling Equipment
3. Lift Truck Market
Stable lift truck demand is expected exceeding mid‐ to long‐term macro economic growth.
GDP*1(US$ trillion)

Logistics volume bytype of package*3

Lift truck market*2

CAGR 3.4% growth(Thousand units)

CAGR 7.7% growth(Euro billion)

1,500

80

4,000
3,500

60

3,000

1,000

2,500

40

Unit

2,000
1,500

500

1,000

20

Carton500

0
10 11 12 13 14 15 16 17 18 19 (CY)
*1: IMF, GDP, current prices(Forecast)00
10 11 12 13 14 15 16 17 18 19 (CY)
*2: Survey by Toyota Industries (Forecast)ʼ10 ʼ15 ʼ20 ʼ25 ʼ30 Pallet（Forecast) *3: Survey by Toyota Industries• Increase of lift truck demand is expected by mechanization needs ofmanual loading/unloading as well as transporting backed by Labor
shortage in developed countries and increasing labor costs indeveloping countries.
•

Increase of smaller packages leads larger opportunity for lift truck
operations.
16/40

Materials Handling Equipment
4. Initiatives for Growth of Lift Truck BusinessSupport for efficient logistics by telematics
Lift truck operation
management• Improve overall productivity at logistics sites byvisualizing operating status of each truck

Safety andenvironment
management• Contribute to safe and fuel/power efficient drive by
visualizing truck record of shocks by accident on lift
trucks as well as each operator’s driving

Swift maintenance• Provide swift maintenance services by recognizing
such information as machine troubles on mobile
terminal even from remote location•

Already active to use at supermarket chains andlogistics operators in Europe and USA as well as
food wholesaler in Japan
17/40

Materials Handling Equipment
4. Initiatives for Growth of Lift Truck Business
Further advanced after‐sales services by usage of telematics• Provide high quality after‐sales services throughout
the network by utilizing globally integrated platform• By leveraging data accumulated from various
logistics sites, establishing the industry‐firstpredictive maintenance system
Using AI and other technologies, replaceparts at the most sufficient timing inconsideration of each truck’s usage
conditions
18/40

Materials Handling Equipment
4. Initiatives for Growth of Lift Truck Business
Enable outdoor usage of autonomous lift trucks

Challenge for outdoor usage and our response•

Various load positions and pitch of truck bed=> Utilize image recognition and
AI technologies•

Needs for different sensors according todifference of surrounding environments=> Combine multiple location detecting
devices

Contribute to efficient logistics inagricultural and other fields• Aim to realize at early stage as much as possible working with
Logistics Solutions Business

19/40

Materials Handling Equipment
5. Logistics Solutions Market
Logistics solutions market is expected to grow backed by
e‐commerce market expansion

Global e‐commerce market*1

Logistics solutions market*2(JPY trillion)(US$ billion)

10

3,000

2,000
5
1,000

0

0
14

15

16

17

18 (CY)*1: Created by Toyota Industries based on “Study Report on a
Structural Analysis of The ICT Industry in the IoT Era andVerification of ICT’s Multifaceted Contributions to Economic
Growth,” Japan’s Ministry of Internal Affairs and Communication(2016)

13

18

25(Forecast)

30 (CY)(Forecast)*2: Survey by Toyota Industries

20/40

Materials Handling Equipment
5. Logistics Solutions Market
Our Logistics Solutions Business is growing stably
in accordance with market expansion
Order intake of
Logistics Solutions Business(JPY billion)
350

Breakdown of sales of
Logistics Solutions Business
Manufacturing& Others
Approx. 20%

300

Retail &Parcel & Post
e‐commerce
Approx. 20%
Approx. 40%
Baggage
Handling(Airport)
Approx. 20%

250
200
150
0
18

19

20 (FY)(Forecast)(FY 2019)
Well balanced and diversified industries•

Sales of some projects are behind the initial plan, affecting therecent performance of the business.

•

Steady growth of order intake in accordance with market growthand our active sales activities
21/40

Materials Handling Equipment
6. Initiatives for Growth of Logistics Solutions Business
Leveraging respective strengths of Bastian, Vanderlande and Toyota, aim forbusiness growth by cooperation with Lift Truck Business

FY2019FY2020

Promotion of individual strategy
of each company

・ Proactive business operationof each company
・ Efficient operation throughclarification of roles of each of
three companies (area, industry
and size) in consideration ofstrengths of three companies

・ Synergy creation by cooperationof three companies
・ Cooperation with Lift TruckBusiness
・ Improvement of profitability
by system standardization andother efforts
22/40

Materials Handling Equipment
6. Initiatives for Growth of Logistics Solutions Business
Various synergy cases are ongoing in Europe and USA, as well as in Japan
Case 1: Cooperation of Logistics
Solutions and Lift Truck Businesses

Case 2: Cooperation of Bastian and
TICO’s Logistics Solutions operation

Project of distribution center of aEuropean major retailer

Project of distribution center in Tokyoof a US major wholesaler of daily use
products

Utilizing TMHE* made autonomous
lift trucks, Vanderlande has
constructed overall logistics system
Operation: July 2019

With Bastian’s system control
software, TICO constructs overalllogistics system
Operation: Planned in October 2020

Autonomous lift truck(TMHE)

Palletising robot(Vanderlande)

System control software(Bastian)*: European headquarters for lift truck business

23/40

Materials Handling Equipment[TOPIC]At ProMat 2019, North America’s largest materials handling trade show,
both Lift Truck and Logistics Solutions Businesses joined together in April 2019•

First joint exhibition of five brands, Toyota, Raymond, Tailift,
Bastian and Vanderlande•

Showcased collective strengths to respond to the logistics
issues of all customers
24/40

II. Our Business Initiatives
Materials Handling Equipment
Automobile‐ Car Air‐conditioning Compressor‐ Vehicle‐ Engine‐ Car Electronics

25/40

Car Air‐Conditioning Compressor
1. Our Compressor Sales and Forecast
While our order intake is stable, stagnant automobile market trends lead weakunit sales(Thousand units)

GlobalJapan

North America
10,56032,98033,000

5,810

5,950

(Major decrease)(Major increases)
5,180

2H

16,31016,800

3,040

2,930

2,770

3,020

FY19

FY20 (Forecast)

ToyotaHonda

Europe8,470

16,670FY19

16,200FY20(Forecast)

4,050

5,100

Chrysler
Nissan

5,380

5,190

FY19

FY20 (Forecast)

China and Others
8,620(Major decreases)

1H

10,290

4,550

4,420

4,070

FY19

FY20
(Forecast)

8,140(Major decreases)
4,040

Peugeot
AUDI/VW

8,140

4,220

4,100

3,920

FY19

FY20
(Forecast)

AUDI/VW
Honda
Ford

26/40

Car Air‐Conditioning Compressor

Electrified Vehicle Market andUnit Sales of Our Electric Type

2. Our Response to
Increase of Electrified Vehicles(Thousandunits)

Demand for electric type is
expected to expand backed byincrease of such electrified vehicles
as HVs, PHVs, EVs and FCVs.

Accelerating market growth
30,000Electrified vehicles market

20,00010,000

TICO unit sales
0
2018

2019

2020
2026
2031 (FY)(Survey by TICO from FY2020 onward)

Our response[R&D] Product development responding to diversifying customer’s needs
as well as strengthening of customer support capability[Production] Production in the market with demand for electric type andflexibly responding to volume fluctuation

27/40

Car Air‐Conditioning Compressor
3. Increase of order intake of electric driven typePrevious (FY18 to FY19 1H)

Present (FY19 2H to FY20 1H)

Automakers

Strictly focusing on
low price

Our response• Further performance improvement• Meticulous response to diversified automaker’s needs by leveraging
our wealth of resources• Strengthening of our support capability to automakers

Returning to value productperformance and quality as well as
customer support capability

Order intake of electric typehas grown in past one year
Four new car models
200 thousand units

Nine new car models
One million units

28/40

Car Air‐Conditioning Compressor
4. R&D initiatives for electric driven type1) Further performance improvement
Performance differentiation from competitors utilizing our unique method of
evaluation and analysis, as well as know‐how High efficiency=> Extension of driving range
Efficiency

Good

2010

TICO

Better performance by 10% and above
Aim for even higher efficiency in the future

Competitors
2015

2020

(CY)

 Lower electromagnetic noise=> Prevention of radio
disturbance on homeelectrical appliances Improvement of quietness=> Lower noise ofelectrified vehicles

Analysis using radio wave anechoic chamber

Evaluation ofquietness

29/40

Car Air‐Conditioning Compressor
4. R&D initiatives for electric driven type2) Meticulous response todiversified automaker’s needs•

Respond to larger capacity requiredfor cooling of electronics devices byleveraging our broad experience of
product development•

Responding to quick charging by
utilizing low electromagnetic noisetechnologies•

Developing products for mild hybrid
vehicles by applying downsizing
technologies of motors

3) Strengthening of our support
capability to automakers• Proposing solutions against various
types of noise and vibration• Strengthening our customer support
structure at each of our overseas
operation[Case example of customer support]
Tone issue during motor speed increase‐ Analyzed control method for the mostsuitable speed utilizing our simulation
technologies‐ Our engineers made proposals withactual vehicle at an automaker’s facility

Led to animmediate
solution

30/40

Car Air‐Conditioning Compressor
5. Production initiatives for electric driven type
Commencement of electric type in China
2021 YST in China
400 thousand units
Japan
3,000 thousand units
2020 TACK in China
400 thousand units

Improvement of productivity in Japan
Respond to volume fluctuations by thebest combination of mass production
line and small volume production line
Mass production line
Produce main products in the line
dividing production processes

Small volume production (cell) line
Based on the production line which has
been cultivated at the mother plant inJapan, utilize production knowhow
Pursue the most suitable partsprocurement among China and Japan

Produce small volume products
consolidating production processes

According to the production volume,
select the suitable production line,
thereby increase productivity

31/40

Car Air‐Conditioning Compressor
6. Expansion of business field by leveraging core technologies

1) Develop device cooling compressors of which
the demand increase is expected byelectrification and automation of vehicles‐ Already received order by leveraging
our strengths of high efficiency andreliability for car air‐conditioning use
2) Enhance FC business which has
excellence in well‐to‐wheel area
‐ Expand business field into drive
train components by applying
compression technologies‐ Under development of next
generation type based on our
experience of product
Oxygen‐supplying
Hydrogendevelopment for MIRAI
air compressor

circulation pump

32/40

Car Air‐Conditioning Compressor
7. Initiatives to increase profitability
Enhance price competitiveness inaddition to performance
Growth in net sales•

Further differentiate productappeals• Expand sales to automakers
worldwide by leveraging productappeals and customer support
capability• Expand sales of highly value
added electric type anticipating
growth of electrified vehicle
market• Increase volume of products andcomponents for FCVs

•
•

•
•

Cost reduction
Deepen cost reduction activities inbroad areas of production processes
including die‐casting foundry
Further improve productionengineering capability such as precise
and high‐speed machining, as well as
automation
Realize the most suitable production
capacity through efficient capital
investment
Increase productivity of plant outside
Japan by utilizing knowhow ofmother plants

33/40

Vehicle
The world best selling SUV

Product planning

Exterior design

Production
TICO’s exterior designidea has been adopted

RAV4

Productionengineering

Evaluation

Product
development TICO took various roles

including development ofupper body

• Further strengthen manufacturing capability through plant‐
wide concerted efforts from planning and development toproduction• Aim to be a leader in the small SUV field
34/40

EngineAim for business growth of both diesel and gasoline engines
Engine unit sales(Thousand units)

593

813

394

375

Diesel engine

Our GD diesel engine is mounted on
Toyota’s new model GRANACE

Currently growth of unit
sales is slowing down due
to stagnant automobile
marketGasoline engine

419
218
FY19

FY20
(Forecast)

Strong unit sales of TNGA
engines
GD diesel engine

Aim for further improvement of development andproduction efficiencies through integration of diesel
engine business from Toyota Motor
35/40

Car Electronics
Promote the use of a vehicle as a power source (1)Utilized for the power outage in Chiba
caused by typhoon
Our AC inverter is equipped

Feed electricity to electric home
appliances in private residences

TICO‐owned seven MIRAI FCVs were sent
to a disaster‐affected area
36/40

Car Electronics
Promote the use of a vehicle as a power source (2)Development of a power combiner to connect DC‐AC inverters
Combining multiple DC‐AC inverters, enable operation of facilities which
require large power such as water distribution pumps and elevators during
a power outage

Power combiner of
DC‐AC inverters
Feasibility test for operating water distribution pump

Aim to promote early commercialization by conducting feasibility
tests jointly with relevant local governments

37/40

Topics
Accredited “Platinum Kurumin” logo
Ministry of Health, Labour and Welfare highly
evaluated TICO’s initiatives to support raising children
TICO has been certified as “Platinum Kurumin”
company, which is the highest rank being given to
the companies providing various initiatives tosupport raising children“Platinum Kurumin” logo

Major reasons of certification* Enhanced support systems‐ Whole day telecommuting system‐ Financial aid system for day care costs for
employees raising an infant younger than
one year old‐ Leave for fertility treatment* Engagement of male employees in child care
‐ Approximately half of eligible employees took
leave or time off for childbirth and childcare

Seminar prior to taking childcare leave

38/40

Topics
Participates the 46th Tokyo Motor Show 2019, October 24 to November 4
Exhibits our automobile related products in two categories; “compression
technologies” and “the use of electrified vehicles as a power source”.

1. Compression technologies• Electric car air‐conditioning compressor• Oxygen‐supplying air compressor for
FCVs• Hydrogen circulation pump for FCVs
• GD diesel engine and turbocharger• Electric turbocharger, etc.

2. Use of electrified vehicles as a power source• DC‐AC inverter and power combiner• Charging and discharging stand for EVs
and PHVs (V2H)• Outer power feeder (V2L)• On‐board charger, etc.

39/40

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.

40/40