FY2021
2nd Quarter
Financial Results
November 2, 2020

I. Financial Summary
1. Points of financial results
2. Financial results for FY2021 2Q
3. Financial forecast for FY2021

1/36

Points of Financial Results for FY2021 2Q
1. YoY decrease in net sales and profits.
2Q (3 months) results retuned to profitable from1Q (3 months) loss.
2. Revised up full year forecast of net sales,
operating profit, profit before income taxes andprofit attributable to owners of the parent.

3. Year end dividends is planned at ¥70, annually at ¥140.

2/36

Performance <FY2021 2Q>(Billion yen)

FY20202Q

FY2021
2Q

Change1,102.9957.0(145.9)(13.2%)

Operating profit

71.5

30.2

(41.3)(57.8%)

Profit before income taxes

108.0

65.2

(42.8)(39.7%)

Profit attributable to ownersof the parent

82.2

48.1

(34.1)(41.5%)

Earnings per share¥265.02¥154.95(¥110.07)-

Dividends per share

¥80

¥70

(¥10)

-

¥/US$

¥109

¥107

(¥2)

-

¥/Euro

¥121

¥121

(¥0)

-

Net sales‐ COVID‐19 pandemic had negative impact on financial results, both net sales and profits are decreased YoY.
‐ OP of each business segment recovered in 2Q (3 months), raising profit in 2Q (6months).

3/36

Segment Information <FY2021 2Q>

Net sales [Operating profit](Billion yen)(Thousand units)

ChangeFY20202Q

FY2021
2Q

VehicleEngine

46.3
61.7

41.2
51.0

(5.1)
(10.7)(10.9%)(17.4%)Car Air-Conditioning
Compressor

169.3

125.4

(43.9)(25.9%)

Electronics parts,
Foundry and others

37.8

32.1

(5.7)

(15.1%)

Automobile

315.2[12.8]

249.8[(17.5)](65.4)[(30.3)](20.7%)

Materials Handling
Equipment

727.2[54.2]

662.9[47.0](64.3)[(7.2)](8.8%)

Textile Machinery

30.2
[1.0]

17.8
[(1.1)](12.4)[(2.1)](40.8%)

Others

30.2
[3.5]

26.3
[1.7]

(3.9)
[(1.8)](12.8%)

1,102.9[71.5]

957.0[30.2](145.9)[(41.3)](13.2%)

Total

Unit sales
FY20202Q

FY2021
2Q

Change

165

147

(18)

DieselGasoline

198
209

141
191

(57)
(18)

Engine

407

332

(75)

Car Air-Conditioning
Compressor

16,20011,590(4,610)Materials Handling
Equipment

144

118

(26)

Air-jet loom

3.5

1.9

(1.6)

Vehicle（RAV4)

Vehicle:Unit sales of RAV4 decreased both in Japan and outside Japan.
Engine:Unit sales of GD diesel engines as well as A25A and M20A gasoline engines decreased.
Car Air‐Conditioning:Unit sales decreased in such regions as North America and Europe.
Compressor
Materials Handling:Net sales of logistics solutions increased, however that of lift trucks decreased in
Equipmentsuch regions as Europe and North America.

4/36

Changes in Operating Profit
Year‐on‐year comparison (FY2020 2Q and FY2021 2Q)
Operating profit ¥41.3 billion decrease (¥71.5 to ¥30.2 billion)

+6.8
71.5

＋2.9
Cost reduction(51.0)+1.4
Decrease in
raw material
cost

Decrease in
expenses andothersDecreasein net sale

FY20202Q(Billion yen)

+11.1

(0.9)

(0.5)

Increase indepreciation

Negative impact
of exchange rate
fluctuations(52.4)

30.2

FY2021
2Q‐ Cost reduction initiatives, decrease in raw material cost and decrease in expenses andothers contributed to profit increase. However, decrease in net sales had a major
impact on YoY profit decrease.
5/36

Performance <FY2021 2Q>(Billion yen)

FY20202Q

FY2021
2Q

ChangeInvestments intangible assets

49.4

59.0

9.6

19.4%

Depreciation

44.8

45.7

0.9

1.9%

‐ Overall investments in tangible assets increased due mainly to increase of
those in Engine business.

6/36

Performance <FY2021 2Q>(Billion yen)

As of March
31, 2020

As of September
30, 2020

ChangeTotal assets

5,279.6

5,547.1

267.5

5.1%

Total equity

2,520.5

2,707.1

186.6

7.4%

Ratio of share of equity
attributable to ownersof the parent

46.2%

47.3%

-

-

256

256

-

-

Consolidated
subsidiaries‐ Total assets increased due to an increase in market value of investment
securities and others.

7/36

Performance <FY2021 Forecast>(Billion yen)

FY2020Net sales

FY2021

ChangePrevious
Forecast

2,171.3

2,000.0(171.3)(7.9%)

1,900.0

Operating profit

128.2

85.0

(43.2)(33.7%)

60.0

Profit before income
taxes

196.2

140.0

(56.2)(28.7%)

110.0

Profit attributable toowners of the present

145.8

105.0

(40.8)(28.0%)

85.0

Earnings per share¥469.85¥338.18(¥131.67)-¥273.77

Cash dividends per
share

¥160

¥140

(¥20)

Payout ratio

34.1%

41.4%

-

-

-

¥/US$

¥109

¥106

(¥3)

-

¥106

¥/Euro

¥121

¥121

-

-

¥120

- Undecided[Interim ¥70]

8/36

Segment Information <FY2021 Forecast>
Net sales [Operating profit](Billion yen)

FY2020

FY2021

ChangePrevious
Forecast

89.9
122.4

90.0
117.0

0.1
(5.4)

0.1%
(4.5%)

90.0
115.0

328.1

293.0

(35.1)(10.7%)

290.0

73.2

70.0

(3.2)

(4.5%)

70.0

Automobile

613.8[17.2]

570.0(43.8)(7.1%)

565.0

Materials Handling
Equipment

1,436.3[102.2]

1,340.0(96.3)(6.7%)

1,245.0

Textile Machinery

61.7
[2.9]

40.0

(21.7)(35.2%)

40.0

Others

59.3
[5.9]

50.0

(9.3)

(15.7%)

50.0

Total

2,171.3[128.2]2,000.0[85.0](171.3)[(43.2)](7.9%)

1,900.0[60.0]

VehicleEngineCar Air‐Conditioning
Compressor
Electronics parts,
Foundry and others

9/36

Segment Information <FY2021 Forecast>
Unit sales(Thousand units)

FY2020
Vehicle （RAV4)FY2021

ChangePrevious
Forecast

324

321

(3)

321

389
418

356
422

(33)
4

343
423

807

778

(29)

766

Car Air‐Conditioning
Compressor

31,03026,600(4,430)26,300Materials Handling
Equipment

278

243

(35)

237

Air‐jet loom

6.8

4.4

(2.4)

4.5

DieselGasoline

Engine10/36

Changes in Operating Profit
Year‐on‐year comparison (FY2020 full year and FY2021 full year forecast)
Operating profit: ¥43.2billion decrease (from ¥128.2 billion to ¥85.0 billion)

+12.0
128.2
Cost
reduction

+1.9

+8.2

(55.0)(Billion yen)

Decrease in Decrease in
raw material expenses
and others
cost

(4.0)
Decreasein net sales

Increase inlabor cost

(3.7)

(2.6)

85.0

Negative
Increase inimpact ofdepreciationexchange rate
fluctuations

FY 2021

FY 2020+22.1(65.3)

11/36

Performance <FY2021 Forecast>(Billion yen)

FY2020

FY2021

ChangeInvestments in tangible
assets

106.0

120.0

14.0

13.1%

Depreciation

90.4

93.0

2.6

2.8%

12/36

II. Impact of COVID‐19
Ｆ

13/36

Impact of COVID‐19
1. Status of unit sales recovery (YoY change)<Lift truck> *Impact of typhoon in previous FY adjusted <Compressor>
(%)

(%)

0

20
0

(10)
(20)

3Q
(forecast)
1Q

4Q(forecast)

2Q

2Q

(20)

3Q
(forecast)

4Q(forecast)

(40)
1Q

(30)

(60)

‐Market shows recovery in Japan andNorth America‐All plants in operation‐Recovery of order forecast from 2Q onward‐All plants mostly recovers operation from
September onward<Vehicle><Engine>

(%)

(%)

40

20

20

0
2Q

0
2Q

(20)
(40)

3Q
(forecast)

4Q(forecast)

3Q(forecast)

4Q(forecast)

(20)

1Q

‐Recover 1Q decreased production
from 2Q onward

(40)

1Q

‐Steady recovery of A25A and M20A gasoline
engines as well as GD diesel engines
14/36

Impact of COVID‐19
2. Activities under the pandemic■ Vanderlande
While business trip is restricted,
tested installed control system
remotely■ Textile MachineryAs overseas trip is restricted,
gave installation instructions toservice technicians abroad fromJapan remotely
15/36

Impact of COVID‐19
3. Expanding business opportunities■ Further increase of automated and efficient logistics solutions needs■ Subsidy on EVs in Europe, one
economic measures in the region,
pushes up demand for electric typecompressors<Subsidies in major countries>
Country

Outline of subsidy

Germany

Increase of subsidy amount forpurchase of new EVs

FranceContinuance of subsidy for vehicle
repurchase including EVs

Italy

Increase of subsidy amount forpurchase of low emission vehicles

16/36

Impact of COVID‐19
4. Secure of cash flow
■ Profit improvement activities‐Revision of operations, cost reductions, cancellation of large conference
and events‐Acceleration of in‐house development of components and facilities■ Investment and R&D‐Postponement or reduction of non essential and non urgent projects‐Continuance of projects for future growth including those related toelectrification and automation■ Cash on hand
‐Increased from two‐month equivalent to three‐month equivalent ofconsolidated net sales‐Issued domestic corporate bond amounting ¥30B in July for the first timein one year and eight months‐No critical cash management issue for the moment‐Flexibly take actions including accelerated funding in the future
as necessary
17/36

III. Our Business Initiatives
Materials Handling Equipment
Car Air‐conditioning
Compressor

18/36

Materials Handling Equipment
1. Toyota Industries’ Products at Various Logistics Sites
Unit‐type automated storage
and retrieval system

Seaport

High‐speed storage andpicking system

Simple AGV

Container transport
AGV system

Large capacity
engine lift truck

Manufacturing
Operation
Distribution
CenterTruck loader‐
unloaderCross belt sorter

Autonomous driving
baggage handling system
Pedestrian low
lift truck

AirportElectric
tow‐tractor

Baggage handlingsystemElectric lift truck

Fuel‐cell lift truck

Stand‐typeelectric lift truck

19/36

Materials Handling Equipment
2. Characteristics of Each Business
Lift truck
Net sales breakdown

Value
chain

New
truck

Broad utility with enduring demand‐Used in all size of customers from small‐ & mid‐ to large‐sized‐Used in various industries‐‐‐Manufacturing, transportation, warehouse, wholesale &retail, seaport, airport…
‐‐‐Receiving & shipping of distribution center of e‐commerce

Approx. 80%

Logistics solutions
Net sales breakdown
Approx. 20%

Strong growth in response to needs for automationand manpower reduction‐Large & automated distribution centers of e‐commerce and others‐Baggage handling system active in over 600 airports including
world’s major hub airports

20/36

Materials Handling Equipment
3. Business Environment‐Gradual recovery of global economy along with settlement of COVID‐19‐Further increase of e‐commerce
Increasing needs for‐Social distancing being taken root
mechanization and automation‐Labor cost increase centered on
emerging markets
World GDP*1(US$ trillion)

World e‐commerce market*2(US$ billion)

4,000

90

3,500

80
70

3,000

60

2,500

50

2,000

40

1,500

30

1,000

20

500

10

0

0
14

15

16

17

18

19

20

*1： IMF, World Economic Outlook, October 2020
(Forecast for 2020 and 2021)

21 (CY)

15

16

17

18

19

20 (FY)*2: Produced by Toyota Industries based on “Study Report on a Structural Analysis of the
ICT Industry in the IoT Era and Verification of ICT’s Multifaceted Contributions to
Economic Growth,” Japan’s Ministry of Internal Affairs and Communication (2016)21/36

Materials Handling Equipment
4. Sales of Toyota Industries
Unit sales of lift trucks(¥ billion)(Thousand)Order intake of logistics solutions

400

300

350
200

300
250

100
200
0

150 0
12 13 14 15 16 17 18 19 20 21(FY)(Forecast)‐YoY decrease expected for FY21 by
COVID‐19‐Tendency of demand recovery alongwith recent resume of economic
activities in each country/region

18

29

20

21 (FY)(Forecast)‐Stable appetite for investment in suchindustries as e‐commerce, foods anddaily use items by life style change
due to COVID‐19‐Long‐term service contracts agreed withseveral airports‐Demand from general manufacturing is
also recovering
22/36

Materials Handling Equipment
5. Major Activities for Further Growth

Leveraging its comprehensive strength covering both lift truck and logistics
solutions, respond to diversifying needs for efficient logistics■Acceleration of collaboration among Vanderlande, Bastian and TICO,
as well as with lift truck business‐Order intake increase leveraging strength of each company‐Speed‐up of development of autonomous driving as coretechnology■Profitability improvement of logistics solutions business‐Acquisition of after sales services and repeat orders,modularization of systems■Customer support utilizing digital technologies andlogistics improvement know‐how
23/36

Materials Handling Equipment
6. Case Example of Increasing Order Intake (1/3)

Collaboration between Vanderlande and TICO
TMHJ* acquired an order from a world leading express
service provider for its distribution center project inJapan for the first time throughcollaboration with Vanderlande* Toyota Material Handling Japan<Key
factors
for winning
theestablishedorder>
Lift truck
divisionin Japana‐Vanderlande’s
structure to sellpast
andexperience
support with thecustomer globally
Vanderlande’s
equipment and system‐TMHJ’s support to introduce
Vanderlande’s system in Japan anddevelopment of necessary structure
24/36

Materials Handling Equipment
6. Case Example of Increasing Order Intake (2/3)

Collaboration among Three Companies
TMHJ* acquired an order from a leading daily use items
provider for its distribution center in Japan for the firsttime through three companies’ collaboration<Key factors for winning the order>‐Bastian’s past experience with thecustomer as well as its system management
software superior in flexibility andscalability‐Vanderlande’s highly reliable equipment‐TMHJ’s support to introduce Bastian’s
software in Japan and after sales services
25/36

Materials Handling Equipment
6. Case Example of Increasing Order Intake (3/3)

Proactive Sales Expansion of Vanderlande & Bastian[Vanderlande]‐Concluded a long term allocation contract witha world leading e‐commerce company for several
distribution center projects in Europe and North America‐Received orders from hub airports in
Europe and North America forlong‐term servicing[Bastian]‐Received orders from a leading pet items e‐commercecompany retailer and cold chain logistics for theirdistribution center projects
26/36

Materials Handling Equipment
7. Case Example of Utilizing Digital Technologies

VR* Simulator for Lift Truck Operators Training* Virtual Reality

Specifically designed VR goggle helps efficient simulation
training of lift truck driving as well as loading and unloading=>Contribute to improving customers’ logistics efficiency byquickly developing well skilled operators

27/36

Materials Handling Equipment
8. Case Example of Strengthening Sales Capability

Strengthening Sales Capability both Online and Offline
With experience at various logistics
sites, provide dealers with logistics
improvement knowhow=>Enhance solution proposal abilityof dealers
Further improvement of customer
experience by utilizing websites=>Offer e‐learning programs
including safety and energy
efficient driving=>Sell entry models or spare parts online
28/36

III. Our Business Initiatives
Materials Handling Equipment
Car Air‐conditioning
Compressor

29/36

Car Air‐Conditioning Compressor
1. Our Compressor Sales and Forecast
Recovery of unit sales is expected in each region from 1H to 2H(Thousand units)

GlobalJapan

North America
9,760

31,030(Major increases in 2H)

5,970

7,890

5,290

(Major increases in 2H)

4,570

26,6002H

14,83015,010

2,950

2,800

ToyotaNissan/Mitsubishi
Honda

3,020

2,490

FY20

FY21 (Forecast)

Europe
6,470

4,010

11,590
4,070

2,460

FY20

(Major increases in 2H)

3,800

16,200FY21(Forecast)

FY20

5,190
3,390

FY20

Ford
ToyotaChrysler

FY21 (Forecast)

China and Others

7,870

1H

4,500

FY21
(Forecast)

Peugeot/Opel
AUDI/VW
Benz

7,430
3,510

6,950

3,700

3,920

3,250

FY20

FY21
(Forecast)(Major increases in 2H)

ToyotaDaihatsu
Ford

30/36

Car Air‐Conditioning Compressor
2. Increase of Electric Type Compressor(Million

Electrified Vehicle Market andUnit sales of Our Electric Typeunits)

Stable order intake including electric
type despite of impact of COVID‐19

20

xEV market

Accelerating market growth of electric type10

New order intake(Thousandunits)

Our unit sales

0
2019

1,500

2020

2021

(Forecast)

2026

(FY)

(Forecast)（自社調べ）

Topic

1,000

Production start in China

Production at two locations in response
to growth of xEV market
March 2020, TACK for Honda vehicles
June 2021, YST for Toyota vehicles

500

0
FY19

FY20

FY21
(Forecast)

Deploy manufacturing knowhow ofmother plant in Japan
31/36

Car Air‐Conditioning Compressor
3. Profitability Improvement through Increase of Electric Type■ Thorough cost reduction■ Restraining fixed cost while
increase in volume

Improve profitability of the businessas a whole, by sales expansion ofhighly value‐added electric type■ Examples of initiatives
Cost reduction activities
based on our rich R&D
experience of various
electronics products
Inverter

Quality and productivity improvement
throughout the production process
up to assembly by pursuing ultimate
quality in die‐casting process

Production efficiency improvement
through the best combination of mass
production line and cell line
for small amount
Cell line for small
production
amount production
Mass production line

Restraining investment by improving
versatility of equipment use of bothengine‐ and electric‐driven types
32/36

Car Air‐Conditioning Compressor
4. Strengthening R&D of Electric Type in Response to Increasing Needs for EVs
Needs from pure EV
Extension of driving range

Lower noise in EV interior

TICO initiatives
Unique design achieving improvement of efficiency and quietness‐Repeated simulations enabling
to develop the suitable design‐Quantitative evaluation using internallydeveloped equipment
Sensory evaluation at proving ground

Prevention of radio disturbanceon home appliances while EVs
being charged

Improvement of inverter performance achieving lower
electromagnetic noise‐Collaboration with Electronics Division which
possessing broad element technologies
enabling to respond to demand of auto makers

Prevention of battery
performance deterioration

Offering of battery‐cooling products leveraging knowhow
accumulated through development of products for car air‐conditioner‐Development of highly efficient and reliable products

Improvement of efficiency inpower consumption whileheating

Initiatives responding to heat pump air‐conditioner‐Development of both high capacity type and that with gas‐injection
function type
33/36

Car Air‐Conditioning Compressor

What is heat pump air‐conditioning system?
Efficient heating method without needs ofwaste heat from engine or heater

Improvement of efficiency in power consumption while heating

Development of compressor for heat pump air‐conditioning system■ Response to diversifying needs
High capacity electric type compressor‐40% increase of cooling and heating
capabilities by higher capacity andfaster rotation‐In addition to air‐conditioning,
contribute to cooling such devices asbatteries

Electric type compressor with gas
injection function‐Improve efficiency in power
consumption while heating by enabling
operation of heat pump air‐conditioning
system under cold climate■ Response to longer operation hour by usage for both cooling and heating‐> Unique internal design realizing two to three times higher durability

Aim for sales expansion for pure EVs which are expected to increase in sales volume.
34/36

Topics
Our Contribution to Well Selling RAV4‐Global best selling SUV in 2019
‐Selected as the Car of the Year Japan 2019‐2020■ Our role in automobile business
Engaged in product development process fromproduct planning phase, taking roles in broad
areas from development including external design
to assembly■ Our major products mounted on RAV4

ESB27 electriccompressor

2.5‐liter A25A
engine for HVs

On‐board
charger

1.5 kW AC inverter
Disaster prevention training utilizing outer
power supply function of AC inverter

35/36

Topics
Initiatives toward Realizing Zero CO2Emissions Society(1) Reduction of waste heat loss in the drying
process of vehicle painting‐Improvement of painting process where
emitted 60% of CO2 in the plant‐This approach can be applied inother plants(2) Achievement of zero CO2 emissions at a
manufacturing plant overseas‐100% use of green electricity including
hydraulic power‐Introduction of biogas, a gas from biomass

Won a Minister of Economy,
Trade and Industry Award

Lift truck manufacturing plant in Sweden

CDP, a world renowned NGO in environment field,
selected TICO as an A‐list company for two
consecutive years

Selected on climate change

36/36

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.