Toyota Industries Report 2023

Toyota Industries Report

2-1, Toyoda-cho, Kariya-shi, Aichi 448-8671, Japan
Telephone: +81-(0)566-22-2511 Facsimile: +81-(0)566-27-5650
https://www.toyota-industries.com/

Toyota Industries
Report2023

Year ended March 31, 2023

Toyoda Precepts / Basic Philosophy
By engaging in value creation based on the Toyoda Precepts and basic philosophy,
we aim to contribute to making the earth a better place to live, enrich lifestyles and promote
a compassionate society.

Toyoda Precepts (Corporate Creed)
Always be faithful to your duties, thereby contributing to
the Company and to the overall good.
Always be studious and creative, striving to stay ahead of
the times.
Always be practical and avoid frivolousness.
Always strive to build a homelike atmosphere at work thatis warm and friendly.
Always have respect for spiritual matters, and remember tobe grateful at all times.

We encapsulated the spirit of founder Sakichi Toyoda in the Toyoda
Precepts, which serve as Toyota Industries’ corporate creed and uponwhich our Basic Philosophy is based.

Basic Philosophy[Respect for the Law]
Toyota Industries is determined to comply with the letter and spirit of the law, in Japan and overseas,
and to be fair and transparent in all its dealings.
[Respect for Others]
Toyota Industries is respectful of the people, culture, and traditions of each region and country in which it
operates. It also works to promote economic growth and prosperity in those regions and countries.
[Respect for the Natural Environment]
Through its corporate activities, Toyota Industries works to contribute to regional living conditions and social
prosperity and also strives to offer products and services that are clean, safe, and of high quality.
[Respect for Customers]
Toyota Industries conducts intensive product research and forward-looking development activities to create newvalue for its customers.
[Respect for Employees]
Toyota Industries nurtures the inventiveness and other abilities of its employees.
It seeks to create a climate of cooperation, so that employees and the Company can realize their full potential.

Message from the Chairman,
Vice Chairman and President

Firstly, we would like to extend our sincere appreciation for your continued support of Toyota Industries
Corporation and the Toyota Industries Group.
On March 17, 2023, Toyota Industries announced its regulatory violation related to Japan’semissions certification for lift truck engines. We would like to take this opportunity to express our
deepest and sincerest apologies for causing great inconvenience to our customers and many otherstakeholders.
We are currently compiling a report on the full picture of the incident, including causes andbackground, as well as measures to prevent recurrence. Toyota Industries is determined to makeconcerted efforts to resolve the inconveniences caused to our customers, suppliers, and all otherconcerned parties as soon as possible. We will also commit ourselves to providing comprehensive
explanations and disclosing detailed information to our stakeholders.
Turning to the surrounding business environment in fiscal 2023 (ended March 31, 2023), although
the global economy showed signs of recovery thanks to the easing of restrictions on economic
activities to prevent the spread of COVID-19, uncertainties abound. They include global inflation
triggered by soaring raw material and energy prices due to the conflict in Ukraine as well asheightened concerns over an economic recession arising from higher interest rates in various
countries. In this operating environment, Toyota Industries strived to expand sales by responding
flexibly to market trends. As a result, we posted increases in both net sales and profits.
Toyota Industries determined the year-end cash dividend to be ¥100.0, an increase of ¥10.0.
Including the interim cash dividend, we paid annual cash dividends per share of ¥190.0, an increase of¥20.0. The same as last fiscal year, we decided to pay the year-end cash dividend early based on a
resolution by the Board of Directors instead of basing our decision on the resolution of the General
Shareholders’ Meetings as we usually do.
Turning to the surrounding business environment, uncertainties abound with regard to the outlookof the global economy. In addition, in the political, economic and technological areas, changes are
occurring at a growing pace such as accelerating global efforts to realize a carbon neutral society andadvancements in digitalization. In this climate, we will renew our commitment to safety andcompliance and strengthen our management platform while at the same time further enhancing
corporate value through the development of innovative technologies and products.
In closing, we would like to sincerely ask for your continued understanding and support.
July 2023

Tetsuro Toyoda
Chairman

Akira Onishi
Vice Chairman

Koichi Ito
President1 Targets laid out in Vision 2030

History of Toyota Industries GroupNet sales (¥ Billion)
4,000

Toyota Industries was established to manufacture and sell the Type G automatic loom invented byfounder Sakichi Toyoda as well as to engage in invention and research. Carrying on Sakichi’s spirit ofcontributing to the development of society by manufacturing useful products, we will keep on flexibly
responding to the changing times and achieve sustainable growth.

3,500

3,000

Battery Business launched
2,500

2,000

Production bases for materials handlingequipment and car air-conditioning
compressors established in the U.S.

Production of Type G automatic looms

Production of Type S engines started

Production of lift trucks started

1,500

Materials Handling Equipment
Business strengthened throughM&As and other schemes

Production of car air-conditioning
compressors started

1,000

500

0
(FY)

1927

1931

1951

1956

1961

1966

1971

1976

1981

1986

1991

1996

2001

2006

Textile Machinery

Automobile

2016

2021

2023

2031

Materials Handling Equipment

Others

1926–

1953–

1988–

2000–

[Founding period][Business diversification and scale expansion][Full-fledged global expansion][Expanding business domains utilizing strategic M&As and other schemes]

Founding period 1926–

Full-fledged global expansion 1988–

1926

Toyota Industries established to manufacture and sell Type G automatic looms.

1988

1935

Model A1 passenger car prototype completed.

1937

Automobile Department spun off and Toyota Motor Co., Ltd. (now Toyota Motor Corporation) established.

1940

Steel Production Department spun off and Toyoda Steel Works, Ltd. (now Aichi Steel Corporation) established.

Business diversification and scale expansion 1953–

2

2011

Production outside Japan launched in earnest: Responds to an increase in demand in various countries where Toyota Industries
engages in business.

Expanding business domains utilizing strategic
M&As and other schemes 2000–
2000

Welcomes the BT Industries Group as a subsidiary to facilitate further growth of the Materials Handling Equipment Business.

2001

Takes over Toyota Motor Corporation’s industrial equipment sales division, becoming responsible for both production and sales.

2003

Production of lift trucks launched: Aimed at business diversification, the operation is started as part of new businesses to expand
the application of Type S engines.

The world’s first mass production of electric compressors commenced for the second generation of Toyota Prius, responding to anincrease in sales of electrified vehicles.

2011

1958

Agricultural machinery business launched: Commenced as part of business diversification but is forced to withdraw from thebusiness in 1966 due to inconsistency in performance and inexperience in sales.

Accelerates the establishment of plants mainly for car air-conditioning compressors and lift trucks in such emerging countries as
Indonesia and Brazil.

2017

1960

Production of car air-conditioning compressors launched.

Augments the Logistics Solutions Business by welcoming Netherlands-based Vanderlande Industries and U.S.-based Bastian
Solutions as subsidiaries, thereby meeting rising needs for logistics efficiency and automation.

1967

The Nagakusa Plant commences production of small passenger cars to further expand business.

2021

Production of bipolar nickel-metal hydride batteries for hybrid electric vehicles launched. In 2022, the Ishihama Plant commences
operation as a battery production base.

1953

Production of Type S engines launched; assembly of automobiles launched.

1954

Toyoda de Mexico established: Toyota Industries’ first foray outside Japan, but withdrew from the country in 1961 due to changes inthe surrounding environment.

1956

Toyota Industries Report 2023

3

Business Overview

CONTENTS

Promotion of ESG Initiatives

Using our resources and strengths as the foundation, we strive for growth in the Materials Handling
Equipment, Automobile and Textile Machinery businesses. At the same time, we aim to enhance ourcompetitiveness by leveraging synergies among these businesses.

Environmental Initiatives

Link toproduct
details

34–37

Contributing to a Carbon Neutral Society

38–40

Establishing a Recycling-Based Society

41–43

Reducing Environmental Risk andEstablishing a Society in Harmony with Nature

43–45

Relationship with Our Stakeholders

Materials Handling Equipment
Toyoda Precepts / Basic Philosophy

Lift Truck

Logistics Solutions

Toyota Industries plans, develops,
produces, sells and provides after-sales
services for industrial vehicles centeredaround lift trucks, which capture the top
global market share*. Together withsales financing and proposals forlogistics efficiencies, we strive tomeet a variety of customer needs.

Toyota Industries works closely with subsidiaries Bastian Solutions LLC
and Vanderlande Industries Holding B.V. by leveraging each company’s
strengths to contribute to resolving customers’ logistics issues througha combination of various logistics equipment and systems.

Inside coverMessage from the Chairman,
Vice Chairman and President

1

History of Toyota Industries Group

2–3

Business Overview

4

Contents

5

Relationship with Our Customers

46–47

Relationship with Our Business Partners

48–49

Relationship with Our Shareholders and Investors

Airport baggage
handling system

High-speed storage andpicking system

Value Creation

Automobile

51–55

Relationship with Our Local Communities

56–57

Corporate GovernanceCorporate Governance Structure

EngineWith its strengths as a leader in safety, environment, quality,
cost and delivery among Toyota Group companies, the Vehicle
Business plans, develops and produces the RAV4 for markets
in and outside Japan.

In addition to automotive diesel engines produced under astructure ranging from planning and development to production,
we also produce gasoline engines and industrial engines.

RAV4 PHV

Diesel engine

62
62–63

Respect for Human Rights

63–65

Compliance

66–68
69

Value Creation Process

12–15

Information Security

69–70

Initiatives to Resolve Social Issues and Improve
Corporate Value

16–17

Risk Management

71–72

Toyota Industries’ Activities Related to Intellectual
Properties
Directors, Audit & Supervisory Board Members,
Vice President, Senior Executive Officers andExecutive Officers

Initiatives for GrowthBusiness Activities

Gasoline engine forhybrid electric vehicles

58–61

Sustainability Implementation Structure

Tax Governance

Vehicle50

Relationship with Our Associates

Cross-Shareholdings / Internal Control System
6–11

Top Message
Electric lift truck

Materials Handling Equipment

18–23

Automobile

24–31

VehicleEngine73
74–75

Corporate and Financial Information

25

Major Bases

76–77

26

Consolidated Financial and Non-Financial Highlights

78–79

Car Air-Conditioning Compressor

Electronics and Others

Car Air-Conditioning Compressor

27–29

Consolidated Eleven-Year Summary

80–81

Toyota Industries’ car air-conditioning compressors are highly
acclaimed in terms of their reliability at high operating speeds
and quiet operation in addition to such excellent environmental
performance features as compactness, light weight and fuelefficiency. The Car Air-Conditioning Compressor Business
captures the world-leading market share in unit sales*.

Toyota Industries plans, develops and produces a wide varietyof electronics products for electrified vehicles such as hybrid
electric vehicles, as well as on-board batteries.

Electronic Devices and Other Products

30–31

Financial Statements

82–85

Corporate and Investor Information

86–87

Electric
compressor

Oxygen-supplying
air compressor forfuel cell electric vehicles

DC-DC converter

Bipolar nickel-metal hydride battery

Textile Machinery

Textile Machinery

32

Editorial policy

In aiming to realize a deeper understanding of the Toyota Industries Group among a broad spectrum of stakeholders, the Annual Report
and Social and Environmental Report have been combined into the Toyota Industries Report from the fiscal year ended March 31, 2008. In
addition to the Toyota Industries Group’s management policies, the report provides easy-to-understand information regarding its business,environmental and social activities as well as corporate governance over the past year as well as its future direction.

Period coveredby the report

This report focuses on activities carried out in fiscal
2023 (April 1, 2022 to March 31, 2023), but also
includes some information outside this period.

Organizations
coveredin the report

Toyota Industries Corporation and its consolidated
subsidiaries

Toyoda Industries Report 2023 PDF

We undertake fully integrated operations
from planning, development andproduction to sales and after-sales
services for spinning machines that spin
twisted fiber bundles into yarn andweaving machines that weave spun yarn
into fabrics.

This PDF file is linked to related websites orvideo sharing websites .
How to use this report
Click ontorelated websites.

Air-jet loom

Ring spinning frame

Link todetails

Read the QR code using a smartphone to view related
websites.
* Requires Internet connection* Survey by Toyota Industries Corporation

4

Promoting Environmental Management

Toyota Industries Report 2023

Reference
guidelines• Global Reporting Initiative (GRI) Standard• ISO 26000• Japan’s Ministry of the Environment Environmental Accounting
Guidelines (2005 Version)• Japan’s Ministry of the Environment Environmental Reporting
Guidelines (2018 Version)• International Integrated Reporting Framework by IFRS Foundation

Cautionary Statement with Respect to Forward-Looking Statements
This report contains projections and other forward-looking statements that involve risks and uncertainties. The use of thewords “expect,” “anticipate,” “estimate,” “forecast,” “plan” and similar expressions is intended to identify such forwardlooking statements. Projections and forward-looking statements are based on the current expectations and estimates of the
Toyota Industries Group regarding its plans, outlook, strategies and results for the future. All such projections and forwardlooking statements are based on management’s assumptions and beliefs derived from the information available at the time of
producing this report and are not guarantees of future performance. Toyota Industries undertakes no obligation to publicly
update or revise any forward-looking statements in this report, whether as a result of new information, future events orotherwise. Therefore, it is advised that you should not rely solely upon these projections and forward-looking statements inmaking your investment decisions. You should also be aware that certain risks and uncertainties could cause the actual
results of Toyota Industries to differ materially from any projections or forward-looking statements discussed in this report.
These risks and uncertainties include, but are not limited to, the following: (1) reliance on certain customers, (2) productdevelopment capabilities, (3) intellectual property rights, (4) product defects, (5) price competition, (6) reliance on suppliers of
raw materials and components, (7) environmental regulations, (8) success or failure of strategic alliances with othercompanies, (9) exchange rate fluctuations, (10) share price fluctuations, (11) effects of disasters, power blackouts and otherincidents, (12) latent risks associated with international activities and (13) retirement benefit liabilities.

The fiscal year ended March 31, 2023 is referred to as fiscal 2023 and other fiscal years are referred to in a corresponding manner.

5Top Message

Value Creation

Promotion of ESG
Initiatives

Initiatives for Growth

Corporate andFinancial Information

T OP MESSAGE

Aiming to Achieve Continued Growthby Striving to Ensure Safety and Compliance
as well as Provide Products and Services
That Contribute to the Development of SocietyOver the years, we have accumulated experience and expertise in various
business fields and built relationships of trust with our stakeholders.
While valuing such assets, we will work to achieve sustainable growth tocontribute to the protection of the environment and the development ofsociety by recognizing changes in the world, the surrounding environmentand our situation, retaining what we should and changing what we should.

Regarding the Certification of Engines for Lift Trucks
As we confirmed a potential regulatory violation related to Japan’s emissions certification for lift truck engines, we
suspended the shipment of the lift trucks for the Japanese market equipped with these engines on March 17, 2023.
The incident followed the suspension of the production and shipment of certain models of internal-combustion lift trucks
in North America in January 2021.* I wish to express my sincerest apologies for causing a great deal of inconvenience to
our customers, dealers, suppliers and many other stakeholders.
Reflecting the seriousness of the matter, we have set up a special investigation committee comprising external
experts who are not stakeholders. In addition to conducting investigations to reveal the full details and analyzing theroot causes, we will formulate measures to prevent recurrence based on the findings. We intend to implement the final
countermeasures based on the findings of the committee’s investigation as well as the confirmation of the Ministry ofLand, Infrastructure, Transport and Tourism and other relevant ministries and agencies. At the same time, we havealready been doing whatever we can at present, such as separating the certification function from our development
department to reinforce the inspection system for legal certifications. We will fully identify our inadequacies, strive toprevent recurrence by taking the necessary measures and build a corporate culture that places the greatest importanceon compliance and safety.
Once again, I want to apologize for the inconvenience and concern experienced by our stakeholders. We take thisproblem seriously and are determined to work to improve.
* We later obtained the certification of engines for small lift trucks that are our mainstay models in our sales of gasoline/LPG lift trucks in North America and resumed shipments in May 2022.
We will sequentially take measures for the remaining models.

External Environment and Review of Fiscal 2023

Koichi Ito
President

6

Toyota Industries Report 2023

In fiscal 2023, although the automobile market and thematerials handling equipment market remained strong on
the back of the recovery of the global economy, the external
environment remained difficult overall. Unresolved supply
chain disruptions caused production to remain below ourtargets. The exchange rate fluctuated more widely than
expected. In addition, we were affected by global inflation,
which caused raw materials, transportation, labor and othercosts to soar.
In this environment, we sought to increase production
as much as possible by steadily capturing opportunities instrong markets and ensuring safety and quality. As a result,
we achieved historic-high net sales and a high level of profit.
I believe this is because our employees, suppliers and otherrelated people worked as one team and did their best in
their respective positions even amid an uncertain future.

Changes in operating profit+14.0(¥Billion)
159.0

169.9

+45.0
Cost
reduction

Breakdown of major items
Energy costs
Depreciation(11.5)(5.8)+87.0
Exchangerate(52.5)
Raw materials
and(17.5)
parts costs
Labor
costs

Breakdown ofmajor items(12.5)
Logistics
costs

US$
Euro

(31.9)
Expenses& others(20.7)

+36.6
+5.6

Sales

Engine certification related costs
FY2022
results

Operating profit: +10.9 (from 159.0 to 169.9) billion yen

FY2023
results

7

Top Message

Results by business segment are as follows. In automobile-related businesses, our production structure was well
prepared to ensure that we were able to tap into the recovery of the automobile market. We were forced to set nonoperation days at the Nagakusa Plant for vehicle assembly and at other plants due to the impact of COVID-19 and theshortage of semiconductors and other parts. However, we achieved our highest net sales in the Automobile Segment
since the adoption of the International Financial Reporting Standards in fiscal 2017, underpinned by other businesses
such as car air-conditioning compressors. In the Materials Handling Equipment Business, demand was strong for both lift
trucks and logistics solutions. Although we had to raise prices due to inflation, orders received remained robust, and net
sales reached a record high. On the other hand, the instability of the supply chain also had repercussions for the Materials
Handling Equipment Business, and production and unit sales of lift trucks were below the initial plan. As for logistics
solutions, things didn’t turn out as we expected, such as delays in the progress of projects and cost increases. These
factors negatively impacted profits of the Materials Handling Equipment Business as a whole.
Going forward, we would like to remain highly responsive and flexible to an uncertain future and the acceleratingchanges in the external environment.

What We Can Learn from Our History
Since our establishment, we have engaged in research and development based on manufacturing that contributes to theimprovement of society by identifying customer needs as the world has undergone changes in many ways.
Our history started with the manufacturing and sales of automatic
looms. However, we did not limit ourselves to textile machinery andentered the automobile business anticipating the motorization of society.
We subsequently expanded our business domains to include the materials
handling equipment business focused on lift trucks, and we continue togrow steadily. In addition, we have been proactively expanding outside
Japan since the 1980s. Combined with M&A activities, these efforts havebroadened the scope of our activities globally. Based on our founding spirit,
we have been focusing on our strengths and what the world needs while
Type G automatic loom
working steadily to establish a solid foothold. I believe this has allowed us toovercome many hardships, such as World War II, the 1973 oil crisis and the2008 global financial crisis. It has made us what we are today.
At present, we provide diverse products with a focus on automobilerelated businesses and the Materials Handling Equipment Business.
Looking back at the past, however, it was never smooth sailing. In 1954,
we established a textile machinery production base in Mexico. However,we were forced to withdraw from the country in a matter of less thaneight years due to reasons such as a delay in factory construction and the
Mexican government’s retraction of support. I believe that this firsthandexperience of the difficulties of doing business outside Japan was leveraged
in our subsequent global expansion. In 1958, we launched the agricultural
machinery business but again withdrew from it after roughly eight years due

Value Creation

Initiatives for Growth

Promotion of ESG
Initiatives

Corporate andFinancial Information

to the inconsistency of our products’ performance and our inexperience in sales. I think that the takeaways from thesebitter lessons were how to navigate difficulties in manufacturing outside Japan and the value to be cherished in sales
activities.
We currently face various difficulties and we will certainly be confronted with hardships in the future. Carrying on
our founding spirit and learning from our history, which is built on the painstaking efforts of our predecessors, we arecommitted to making our utmost efforts and overcoming setbacks so that when we look back in the future, we will findmeaning in such experiences.

Medium-Term Direction
Expanding Businesses to Achieve Vision 2030
The performance of the Textile Machinery Business has many ups and downs because it is greatly affected by the global
textile markets. Therefore, we aimed to break away from being dependent on a single business and began to focus ourefforts on the diversification of2030 Vision targets
Over ¥400 billion
Achieving sustainable (Operating profit ratio of 10%)our business in the 1950s. Lift
growth in harmony
with society
trucks and car air-conditioning(¥ Billion)
compressors, which we
Operating profit(Over ¥4 trillion)
169.9
4,000
159.0
147.4
developed through a series of
134.7
134.6 128.2
127.3
3,379.8
118.1
3,500
trial and error, have now grown
122.9
3,000
68.7
into core businesses that drive
2,705.1
Net sales
Automobile
our company. Fortunately, both
2,500
2,243.2 2,250.4
2,214.9 2,171.3 2,118.3
2,003.9
our Automobile Business and
2,000
1,675.1
Materials Handling Equipment
1,479.8
1,500
Materials HandlingBusiness have continued toEquipment/Logistics
1,000
grow steadily thanks in part to500
the ongoing expansion of the0market. We will engage in(FY) 20112016
2017 2018 2019 2020 2021 2022 2023
2031
R&D and sales expansion
JGAAP
IFRS
activities with a focus on these
two businesses to achieve
Vision 2030, which represents what we aspire to be in the medium term.
Specifically, we will focus our efforts on the domains of electrification andautomation, which are identified as our CSR material issues (materiality), tocreate new values. In the field of automobiles, the move toward electrification isirreversible. As such, we will capture opportunities created by the expansion of
the market, with a clear focus on electric compressors that can be installed in all
types of electrified vehicles, and strive to further expand sales of car electronics
products and bipolar nickel-metal hydride batteries for hybrid electric vehicles(HEVs). Turning to the field of materials handling equipment, the logistics volume
Electric compressor
is expected to increase in tandem with the global economy, which is projected

TIEM established8

Toyota Industries Report 2023

9

Top Message

to grow in the medium term. Moreover, the development of e-commerce
has led to the increasing frequency and smaller units of delivery. We
expect that the need for labor savings, greater efficiency and automation oflogistics operations will continue to increase in response to changes in thesurrounding environment that includes rising labor costs, labor shortage
and workstyle reforms at logistics sites. In response, we intend to meetcustomer expectations in dual business fields of lift trucks, of which we offer
a full lineup around the world, and logistics solutions, for which we provide
products and services for projects of all sizes in many different regions.

Value Creation

Initiatives for Growth

Promotion of ESG
Initiatives

Corporate andFinancial Information

stance as well as identify the areas where they consider we are doing well and we are not taking sufficient measures. We
will continue to ensure these findings are reflected in our management. Going forward, our efforts will focus on identifying
changes in society and the things that are required of us through dialogue with our stakeholders, thus contributing to thedevelopment of society as a good corporate citizen.

Pocket sorter by Vanderlande

Further Strengthening Relationships with Stakeholders by Striving to Achieve Even Greater Harmony with Society
To achieve sustainable growth in harmony with society, it is important to ensure that our businesses continue to benefit
society, instead of relying solely on the growth of the market. It is when we are needed and selected by society that
we can grow. We will engage in activities primarily for the happiness of customers and all stakeholders involved in ourbusinesses, not to mention the protection of the global environment. At the same time, we will strive to further reinforce
the foundation supporting our corporate activities, including our organizations, systems, human resource development
and digitalization.
On the environmental front, climate change is a challenge that urgently
needs to be addressed on a global scale and we have been acting
accordingly. In production, for example, we are producing results byconsistently working on energy-saving activities and sharing best practices
among business divisions. We intend to persistently pursue these activities.
Meanwhile, we have been utilizing renewable energy and developing newtechnologies conducive to decarbonization to steadily advance initiatives
to achieve carbon neutrality. In the field of product development, we plan
to reduce the environmental impact of using our products by applying ourFuel cell lift truck
electrification, fuel cell and other technologies while facilitating collaboration
between the Materials Handling Equipment Business and the automobile-related businesses. At the same time, we will
work to improve the competitiveness of our products.
Regarding biodiversity, which is closely related to climate change, our employees participate proactively inconservation activities that take advantage of the characteristics of each plant, mainly in the vicinity of our production
bases. We intend to expand these initiatives in the future.
Looking at social responsibility, we will strive to enhance the whole Toyota Industries Group through a variety of
initiatives already being undertaken to date. They include carrying out
comprehensive safety measures with a clear focus on ensuring thoroughcompliance, promoting diversity and respecting human rights not only inall our corporate activities but throughout the supply chain. Based on the
Human Rights Policy formulated in 2021, we will strive to steadily enhance
activities regarding respect for human rights, without limiting these activities
to within the supply chain.
We will also enhance dialogue with investors, shareholders and otherstakeholders to promote their understanding of our current situation and

Building a Foundation for Sustainable Growth
To reinforce our foundation, it is important to make sure that every employee understands the importance of safety,
health and quality based on compliance, and that these basics are continually emphasized and enforced. Based on thisunderstanding, we will strive to reinforce our foundation for sustainable growth through two-pronged strategies. One is topromote the adoption of information and digital technologies and use them for reskilling a wide spectrum of employees,
from young employees to older employees. The other is to maintain and increase our overall competitiveness by enabling
our diverse employees to leverage their diversity, facilitating collaboration and providing venues for them to thrive. In thisdramatically changing environment, we will build a foundation that will turn change into an opportunity rather than a risk.
As for corporate governance, we will seek to build an optimal structure to achieve the sound and sustainable
development of the Toyota Industries Group while considering changes in what is expected of companies. As we aim torealize highly effective governance, we will continue to ensure that the Board of Directors engages in open and robust
discussion while leading the Toyota Industries Group in a well-balanced manner based on diverse opinions, thereby
connecting these efforts to enhance corporate value. For the promotion of the diversity of executives, we believe it
should involve more than just formality. It is an important Company-wide task that entails the continued development of aworkplace environment enabling women and other diverse human resources to fully demonstrate their capabilities. Basedon this belief, we will take a bottom-up approach to implement this initiative.

In Conclusion
We desire to develop businesses by gaining theunderstanding and support of our stakeholders through theprovision of products and services that are helpful to society,thus contributing to making the earth a better place to live,
enriching lifestyles and promoting a compassionate society.
To achieve this goal, we will recognize and squarely face thecurrent situation, rectify the points that require rectificationand look forward to the future in our efforts to achieve
corporate growth. We will attach importance to safety andquality with compliance as a fundamental principle andstrive to build a workplace environment that enables diverse
colleagues to thrive and work with a sense of pride. Throughthese efforts, we will continue to forge ahead so that we willremain needed by society.
We look forward to your continued understanding andsupport as we endeavor to implement these initiatives.

Information session on the Materials Handling Equipment Business10

Toyota Industries Report 2023

11

Top Message

Value Creation Process

Value Creation

Initiatives for Growth

Promotion of ESG
Initiatives

Corporate andFinancial Information

Value Creation Process

In line with our founding spirit, Toyota Industries remains committed to creating value and contributing
to society by engaging in and developing our diverse businesses.

Six Capitals Supporting Growth
Since our founding, we have strived to achieve sustained growth by flexibly
responding to a drastically changing society based on the six capitals we haveaccumulated to date.

Aspiration in the Medium to Long Term and CSR Materiality
Based on the Toyoda Precepts (corporate creed) and basic philosophy, we have been working to directly
address the changes and challenges surrounding society and make the most of the core assets andstrengths we have accumulated to date to achieve our 2030 Vision and CSR material issues.

Climate change
Human Capital
Diverse human resources committed to creating and delivering products andservices that contribute to society Human resources comprised of more than 70,000 employees possessing diverse
strengths in their respective business field Certified as a Health and Productivity Management Organization
 Systems and training programs to help individual employees to demonstrate theirabilities to the fullest regardless of age or gender Lifting Group-wide capabilities to the next level through global exchanges acrossbusinesses and functions

EnergyResources
Water issues

Intellectual Capital

Digitalization

Electrification
Automation

Decliningbirthrate andaging population

Work style
diversification

GeopoliticalrisksSocial issues
and changes

Toyota Industries Report 2023

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

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ea
te

s,” “safe/reliable, comfortabl
ission
e” an
m
e
o
d “s
/zer
ma
n
a
e
rt”
“Cl

Technology, expertise and know-how related to automobiles and materials handlingequipment Strengthening development capability and competitiveness through collaboration
between the Materials Handling Equipment and Automobile-related businesses Accumulation of knowledge thanks to involvement in the production of automobiles
spanning from vehicle assembly to the development of key components
 Wide-ranging responsiveness and sustainable growth potential stemming fromtechnologies in the development of both automation and electrification
 Research and development mainly on automation and electrification by also drawing
on external expertise

soc
iety

Create new values by being studious and creative

Automobile

Materials
Handling
Equipment /Logistics

Take on challenges and enter into new businesses

Manufacturing Capital

Textile Machinery

Production structure and investments in tangible assets to deliver quality products
to customers around the world Superb quality and productivity based on the Toyota Production System Globally stable production and supply structures of respective businesses
 Proactive capital investment for further business expansion

TPS

Team

Manufacturing foundation strength

Toyoda Precepts

Link todetails on
Vision 2030

Social and Relationship Capital
Extensive sales and service networks together with relationships of trust withvarious stakeholders Global sales and service networks mainly for materials handling equipment
 Close collaboration with Toyota Group companies as well as major automakers andother manufacturers around the world
 Sustainable supply chain built on mutual cooperation with business partners
 Proactive dialogue with shareholders, investors and members of local communities

Natural CapitalGroup-wide initiatives aimed at reducing environmental impact and realizing acarbon neutral society Business activities to realize clean/zero emissions in terms of production and products
 Proactive initiatives to reduce CO2 emissions and introduce renewable energy on a
global scale Activities to reduce logistics-derived CO2 emissions per unit of production(non-consolidated) and waste generation

Financial Capital
Solid financial foundation underpinning sustained business expansion
 Share of equity attributable to owners of the parent: ¥3,837.4 billion
 Net cash provided by operating activities: ¥194.9 billion
 Equity ratio: 49.1%
 Return on equity: 5.0%

12

Vision 2030

CSR Materiality
CSR Materiality

SDGs to Contribute Mitigation of Global Warming Contribution to Circular Economy
Resolving Social
Issues throughOur Business Creation of Innovative Values Products and Services Which Contributeto Safety, Reliability and Comfort
 Mutual Prosperity through Partnerships
with Local Communities

Foundation
Supporting
Our Business
Operations

 Safe and Healthy Work Environments
 Leveraging Diversity and Inclusion
 Sustainable Procurement Compliance and Risk Management

Link to CSR
Materiality

Basic Philosophy
Toyoda Precepts

13Top Message

Value Creation

Initiatives for Growth

Promotion of ESG
Initiatives

Corporate andFinancial Information

Value Creation Process

Using our resources and strengths as the foundation, we strive for growth in the Materials Handling Equipment, Automobile and Textile
Machinery businesses. At the same time, we aim to enhance our competitiveness by leveraging synergies among these businesses.

We will meet the expectations of our stakeholders by achieving sustainablegrowth and enhancing not only the value of our products and services but also
the value of the Toyota Industries Group itself.

¥84.3 billion¥957.8billion¥7.8 billion

Customers
Contributing to such needs as electrification,
automation and energy savings as well as safety andreliability through high-quality products and services¥34.6
billionNet sales

Operating profit¥3,379.8¥169.9FY2023

FY2023Business Partners

billionbillionMaterials Handling
Equipment
Automobile¥121.8¥2,283.8

billionbillionTextile Machinery

Materials Handling Equipment
Net Sales

Lift trucks and logistics solutions that
contribute to greater logistics efficiency
for customers(¥Billion)

1,500

90

1,000

60

500

30

0

Net Sales

Comfortable and appealing automobiles
Fuel-efficient and clean engines
Car air-conditioning compressors that realize
a comfortable vehicle interiorElectronics and batteries that contribute to theelectrification of automobiles, etc.

Textile Machinery
Weaving and spinning machinery to
produce fabrics and yarns of high quality
and soft texture

21

22(¥Billion)

21

22

23

Developing employees’ work values and motivatingthem to demonstrate their potential by creating safe
and secure workplaces for diverse human resources(¥Billion)

40

0

23

(FY)

Operating
Profit(¥Billion)

100

Local Communities

21

22

23

8
6

60

4

40

2

Contributing to reducing CO2 emissions, mitigating
resource depletion and curtailing environmental risks
by promoting environmental management

0
21

22

23

-2

(FY)

Contributing to the prosperity of each country andlocal community through promoting social welfare,youth development, environmental protection,community contribution and other activities

Global Environment(¥Billion)

80

0

22

10

200
(FY)

21

20

400
0

Employees

30

600

(FY)

Toyota Industries Report 2023

(FY)

Operating
Profit

1,000

20

14

0

23

800

Net Sales

150
120

Shareholders and Investors
Returning profits to shareholders and investors byenhancing corporate value through sustainablegrowth(¥Billion)

2,000

(FY)

Automobile

Operating
Profit2,500

Co-existence and co-prosperity based on mutual
trust cultivated through open, fair and equitablebusiness relationships

21

22

23

Further Evolution
and Growth

Utilizing andenhancingsix capitals
Human capitalIntellectual
capitalManufacturing
capitalSocial andrelationshipcapitalNatural capital

Creation of greater corporate value

Values and Joys for Stakeholders

Contribute to making the earth a better place to live, enrich lifestyles, and promote a compassionate society

Business Results

Financial capital

15

Top Message

Identification of Issues Relevant to
Toyota Industries

Under the Toyoda Precepts (corporate creed), Toyota Industries has been undertaking a broad range of businesses by
upholding the philosophy of contributing to society since its founding. In keeping with recent changes in the businessenvironment, we have clarified which social issues we should tackle as our CSR material issues, and will
Link towork for the resolution of these issues. We use part of the evaluation on target achievements for initiatives
details
on key CSR materiality items as a reference index for calculating bonuses for executives.
CSR Materialityl Mitigation of Global Warmingl Contribution to Circular Economy

Resolving Social Issues through Our Business

SDGs to Contributel Creation of Innovative Values
SDGs to Contributel Products and Services WhichContribute to Safety, Reliability andComfortl Mutual Prosperity throughPartnerships with Local
Communities

Contribution to Vision 2030 (Aspiration)
Clean/zero emissions:
Mitigating global warming and achieving acircular economy through such initiatives as
reducing CO2 emissions and waste in ourbusiness activities and expanding the lineup ofenvironmentally friendly products in our efforts tocontribute to maintaining and improving the
global environment over the long run

Creation of innovative value, smart:
Contributing to achieving a “smart” society andmore enriched lifestyles by resolving social issues
through technological advancement andinnovation that create new value

Safe/reliable, comfortable:
Contributing to creating a compassionate society
by offering products and services that anticipate
the needs of customers and various stakeholders
and that are safe, reliable and comfortable to use
while fulfilling our responsibilities as a member ofsociety to thrive together

Identifying, among various social issues, the ones
relevant to our business activities based on the United
Nations 17 Sustainable Development Goals (SDGs) and
169 targets as well as guidelines[Items we refer to]1) 17 SDGs and 169 targets
2) Important ESG items

Action Policies
l R educing CO2 emissions from production
activitiesl Reducing CO2 emissions from productionrelated logisticsl Reducing CO2 emissions through productand technology development

Assessment of Importance[Assessment method]1) Conducting questionnaires anddiscussions with relevant internal
departments
2) Plotting onto a 2 x 2 materiality matrix
to select issues having higher degrees
of importance

Action Targets and Activitiesl Reduce production-derived CO2 emissions
Total emissionsl Adopt renewable energy sources
Introduction ratel Reduce logistics-derived CO2 emissions
Emission volume per unit of production (non-consolidated)l Implementing initiatives to promote 3R(reduce, reuse and recycle) design for
effective resource utilizationl Reduce use of resources and promote reuse and recycling of resourcesl Offering high-quality and safe products andservices and maintaining and improving thestructure to realize this goal

SDGs to Contributel Continuously promoting grassroots activities
in local communities and thrive together as amember of societyl Ratio of R&D expenses for electrification and automationl Expand peripheral fields and new business fields Net sales

Develop new technologies and products for logistics automation and expand sales(Materials Handling Equipment)
Sales of automation products (growth rate)(FY toachieve)

Results for FY2023

Page
numberTargets for
FY2024(2026)–30%

P. 38–40—

15%(2026)

15%

P. 38–40—–11%(2026)

–8%

—

—

—

P. 38–40—–17%

P. 41–43

—

—

P. 41

—

—

P. 41–43—

Importance for Toyota Industries

Targets–25%*(vs FY14 level)(vs FY14 level)–12%(vs FY14 level)

70%
Over ¥1 trillionOver(2026)(2031)(2031)

Foundation Supporting Our
Business Operationsl Fostering safe and healthy workplaces foreveryone

Twofold(100%)(vs FY2021)(2031)l Expand sales of electrification-related products (all businesses)(2031)
Over 70%
Ratio of electrification-related products to net sales
Offer highly efficient and energy-saving electric compressors that are excellent in terms of quiet operation andcomfort (Automobile Business)
Offer clean and high-quality fuel cell units and on-board batteries (Automobile and Materials Handling Equipment
businesses)
Offer power source-related products, on-board or otherwise, that can also be used as social infrastructure during disasters andother occasions (Automobile Business)l Conduct product risk assessment (target products)(2031)
100%
Implementation rate (non-consolidated)(2031)
100%l Promote quality education Training participation rate (non-consolidated)
Expenditure/number of participantsContribute to biodiversity conservation of local communitiesl Sustainable Procurementl Compliance and Risk Managementl E liminate serious accidents—l Creating the environment for everyone to geta fair share of opportunities to develop anddemonstrate their potential

Number of serious accidents	Frequency rate of lost workday injuries (non-consolidated)l Utilize diverse human resourcesl Leveraging Diversity and Inclusion

Ratio of female managers (non-consolidated)	Ratio of employees with disabilities (non-consolidated)

42.2%

—

46%

—

P. 27–29

—

—

P. 31

—

—

P. 30–31—

100%

P. 46–47

100%

92.3%
¥910 million/
28,500 persons
—
—
0
0.06
1.7%
2.57%

P. 47

100%

P. 57

—

P. 43–45

P. 52

—
—
0
0.00
—
Over 2.4%

P. 49

100%

P. 66

0

P. 71–72

—
0

100%

(2031)

0(2031)

100%(1,140 companies)
1(2031)—
0(2031)—

P. 19–23(2031)(2031)

58%
—

50.1%

Up

0
0.00
3.6%
Over 2.7%(2031)

P. 19–20
P. 27–29
P. 31

P. 56–57
P. 53–54
P. 54
P. 52

Up

71%

l Maintain sound transactions and strengthen structure throughout the supply chain
Implementation rate of sustainability checks on target suppliers (non-consolidated)l Establishing the foundation to remain acompany that is trusted and needed bysociety

54.1%——

Promote other community contribution activitiesl Safe and Healthy Work
Environments

Approval by
Top Management
Gaining approval of the CSR
Committee chaired by thepresident and comprising our top
management based on thevalidation results

Develop new technologies and products that contribute to resolving environmental and social issuesl Promote social contribution activities

Corporate andFinancial Information

Conducting reviews by both our
top management and outside
experts to receive feedback andconfirm the adequacy of theselected issuesl Develop technologies that contribute to an even greater level of energy efficiencyl Reduce waste generation volume
Waste generation volume per unit of production (non-consolidated)l Promote water conservation activities corresponding to the water situations in each country
and regionl Enhancing electrification-related products
and services that are highly functional,
ecologically sound and adaptable as social
infrastructure

Promotion of ESG
Initiatives

Validation of Adequacy

Assessing the importance of the identified issues from both internal andexternal viewpoints to select those having higher degrees of importancel Effective resource utilization in production
activitiesl Promoting development of new technologies
that create new valuel Improving core technologies and utilizing the
new knowledge of business partners to enter
into peripheral fields of existing businesses
while developing and offering technologies
and products in new business fields

Initiatives for Growth

Initiatives to Resolve Social Issues
and Improve Corporate Value

Process to Determine CSR Materiality

Importance whenviewed from outside

Initiatives to Resolve Social Issues and Improve
Corporate Value

Value Creationl Eliminate serious compliance violations

Number of violationsl Promote risk management activities taking a risk-based approach
Improve BCP effectivenessRespond to cybersecurity risks

Number of serious incidents

0

P. 70

* As a more ambitious target, we are aiming for a 50% reduction by fiscal 2031 from the fiscal 2014 level.

16

Toyota Industries Report 2023

17

Business Activities

Top Message

Value Creation

Initiatives for Growth

Promotion of ESG
Initiatives

Corporate andFinancial Information

Business Activities
Link toproduct
details

Materials Handling Equipment

As a market leader with an extensive knowledge of global logistics needs, Toyota Industries provides a range ofmaterials handling equipment, mainly lift trucks, and logistics solutions to customers.

Medium-Term Direction of BusinessWe will work to develop and propose new products and services incorporating cutting-edge technologies through the proactive
use of open innovation and co-creation with customers.
Our goal is to become the logistics solutions partner of the first choice for customers by meeting their wide-ranging needs
and helping them increase their logistics efficiencies based on the Toyota Industries Group’s comprehensive strengths coveringboth the lift trucks and logistics solutions fields. At the same time, we aim to resolve social issues and realize a sustainable
society through logistics.

Business Characteristics
Strengths

Opportunities• An extensive logistics-related product lineup both for lift trucks(internal-combustion type, electric type, fuel cell (FC) type, etc.) andlogistics solutions products (automated storage and retrieval
systems, automatic guided vehicle (AGV) systems, automated lift
trucks, etc.)• An expansion of global logistics volume in line with an increasein the world population and economic growth• High technological capabilities, including those linked toenvironmental and safety performance• Production know-how that ensures high levels of quality andproduction efficiency• Growing need for products with high fuel efficiency and low
environmental impact that contribute to carbon neutrality• Growing needs for higher logistics efficiencies, automation andlabor saving prompted mainly by soaring labor costs and labor
shortages• Increased recognition that logistics is an essential business• Global, well-developed production, sales and service networks

Risks• An extensive value chain encompassing in-house development
and production of engines, motors and other key components;
total after-sales services including maintenance and inspections aswell as operational management; and sales financing operations
offering more options in sales• Restrained capital investment due mainly to a slowing economy
and disasters• No. 1*1 in lift truck unit sales in the world• A wealth of experience and know-how as well as a global networkin the Logistics Solutions Business• Software development capability to create such systems as awarehouse management system*1: Survey by Toyota Industries Corporation• Weaker sales due to intensifying competition• Change in business environment triggered by an expanding
market of low- to mid-priced lift trucks• Suspension of production caused by supply chain disruptions• Weaker demand for internal-combustion lift trucks resulting from
more stringent environmental regulations• Emergence of next-generation robotics products as analternative to lift trucks

Materials Handling Equipment Sales

Net Sales

Operating Profit

FY2022

FY2022¥1,789.4 billion¥113.6 billion

200

FY2023

FY2023100

121.8 billion

02,283.8 billion¥¥(Thousand units)

300

(FY)

Business Structure
Toyota Industries’ Materials Handling Equipment Business is operated under a two-organization structure: Toyota Material
Handling Group (TMHG) responsible for the Lift Truck Business and Toyota Advanced Logistics Group (TALG) engaging in
the Logistics Solutions Business. TMHG and TALG collaborate to achieve overall growth of the Materials Handling Equipment
Business while reinforcing individual businesses.

Toyota Material Handling Group (TMHG)
As a market leader in the materials handling equipment andlogistics fields, Toyota Industries’ comprehensive strengths
lie in its ability to respond to specific and ever-changing
needs of customers on a global scale. We assist customers
worldwide in attaining greater logistics efficiencies by
delivering optimal solutions to each logistics site. Under the
TMHG management structure, we engage in the Lift TruckBusiness under the TOYOTA, BT, RAYMOND, CESAB and
Tailift brands. Mutually utilizing the development and sales
strengths of each brand, TMHG is promoting businessglobally.
We basically carry out product development in three
regions, namely Japan, North America and Europe. Basedon this structure, we develop and manufacture products ineach region, which are matched to the specific local needs
and characteristics, and ensure quick product delivery tocustomers. At the same time, we seek greater productappeal by conducting in-house development and productionof such key components as engines and motors, which
greatly influence the performance of lift trucks.
While continuously offering products that will contributeto the safety of customers’ logistics sites, we are improving
the energy-saving performance and enhancing our electric lift
truck lineup in response to the trend toward decarbonization,
including enforcement of stricter environmental regulations
and growing eco-consciousness worldwide. We arealso promoting the development of autonomous driving
technology as a response to growing needs for greater
Toyota Material Handling Group

TMHG
19

20

21

22

Despite a decline from 2021, sales in the lift truck market in 2022 remained at a 2-million-unit level on the back of thecontinued demand recovery following the resumption of economic activities around the world. Amid this business climate,
Toyota Industries engaged in sales and after-sales services corresponding to respective markets. As a result, unit sales oflift trucks for fiscal 2023 were up 35,000 units, or 12%, to a total of 317,000 units from the previous fiscal year. In the
Logistics Solutions Business, we continued to see strong demand related to e-commerce and warehouse logistics as well
as a recovery in airport-related orders. Capitalizing on this development, we have sought to further strengthen ourbusiness through collaboration with our subsidiaries engaging in logistics solutions operations in Europe and the UnitedStates and by welcoming a German company as our subsidiary. As a result, net sales in fiscal 2023 increased ¥494.4
billion, or 28%, from the previous fiscal year to ¥2,283.8 billion.

Toyota Industries Report 2023

Toyota Industries’ Global Lift
Truck Market Share(Survey by Toyota Industries
Corporation, 2022)

23

TMHJ

TMHNA

TMHE

TMHI

TMHCN

Toyota Material
Handling Japan

Toyota Material
Handling
North America

Toyota Material
Handling Europe

Toyota Material
Handling
International

Toyota Material
Handling China

Business Overview in Fiscal 2023

18

logistics efficiencies mainly driven by labor shortages.
In addition to supplying high-quality products, weconsider our strength to be able to support customers
throughout our entire value chain, which encompasses
everything from providing after-sales services through our
extensive networks to offering sales financing operations.
On the sales front, we are offering products and logistics
improvement solutions optimally matched to individual
customers’ logistics sites. Simultaneously, we are responding
to needs for fleet management that optimizes the operationof multiple lift trucks for customers conducting businessglobally. In terms of services, we have established a structure
to provide swifter and more efficient after-sales services by
centrally and digitally managing information on lift trucks
owned by customers and their history of repairs while
assigning experienced and highly skilled personnel andutilizing leading-edge information technology (IT). As anothereffort, we are putting in place a structure to offer extensive
after-sales services by establishing a system to certify
dealers’ after-sales service facilities and offering programs
to train service staff so that customers can use our productswith an increased sense of reassurance. We are also
strengthening our internal sales financing operations mainlyin Europe, the United States and other developed countries
in order to flexibly respond to customers’ diverse needs forfund procurement. Additionally, TMHG is collaborating withTALG to create synergies between the lift trucks and logistics
solutions fields in development and other domains.

The Toyota Material Handling Group possesses several brands such as TOYOTA, BT and RAYMOND and engages in businessby dividing the world into five areas: TMHJ (Japan), TMHNA (North America), TMHE (Europe), TMHI (Asia, Australia, etc.) and
TMHCN (China).

ToyotaIndustries
20%

World No. 1

Main ProductsElectric lift truck

Reach-type electric lift truck

Electric low lift truck

Internal-combustion lift truck

Automated lift truck19

Business Activities

Top Message

Value Creation

Initiatives for Growth

Promotion of ESG
Initiatives

Corporate andFinancial Information

Business Activities

Toyota Advanced Logistics Group (TALG)
In spite of the growing concern for a global economic
slowdown, the need for logistics automation remains strong
and has, in turn, necessitated solutions for more advanced
logistics issues. Amid this environment, we go a step beyond
just providing a broad range of materials handling equipment
and associated software programs and are reinforcing our
Logistics Solutions Business to more meticulously satisfy
each customer’s varying needs by leveraging our logistics
improvement know-how accumulated to date. Under the
TALG management structure, the Logistics Solution Divisionof Toyota Material Handling Japan, U.S.-based Bastian
Solutions LLC, Netherlands-based Vanderlande Industries
Holding B.V. and Germany-based viastore*2, which joined
the Toyota Industries Group in July 2022, are collaborating indevelopment, sales and other activities to expand businesswhile leveraging their individual strengths.
viastore, which became a new member of the Toyota
Industries Group in July 2022, mainly engages in thein-house development of software for controlling andmanaging various materials handling equipment andsmall- to medium-sized automated storage and retrieval
systems. It provides its products to a wide range of sectors
from retail to manufacturing, logistics and food, primarily inEurope. In particular, it has strengths in automation that links
multiple processes, such as storage and transportation,with optimal materials handling equipment and software,
garnering high acclaim in the market. Collaboration among
TALG companies has begun and has already led to someconcrete accomplishments, including a large-scale order fora solution combining viastore’s software. We will strengthensuch collaboration further in order to respond to customers’automation needs as a Group-wide effort and seek toachieve further business expansion.
Toyota Advanced Logistics Group

TALG
Logistics
Solution
Division of
Toyota Material
Handling JapanTALNA*3/
BastianVanderlande

viastore*2: Logistics system integrator in Germany, viastore is a collective name for four
companies: viastore SYSTEMS GmbH, viastore SOFTWARE GmbH, viastore
International GmbH and Buck Engineering GmbH.
*3: Toyota Advanced Logistics North America (Holding Company of Bastian)Main Products
and Systems
Automated storage
and retrieval system

Simple AGV

SorterHigh-speed storage andpicking system

Airport baggage
handling system

Business Activities in Fiscal 2023
As we have confirmed a potential regulatory violation related to Japan’s emissions certification for lift truck engines, we havesuspended the shipment of lift trucks for the Japanese market since March 2023. We have been working on revealing the fulldetails and analyzing the root cause. Based on the findings, we intend to thoroughly implement measures to prevent recurrence.
At the same time, we have already been doing whatever we can at present, such as separating the certification function fromour development department to reinforce the inspection system for legal certifications. (As of June 30, 2023)
In 2022, a recovery in global demand continued due to the reopening of economic activities in respective countries, andunit sales of lift trucks remained at a 2-million-unit level. Amid this environment, we worked to enhance the product appeal of
our mainstay lift trucks and expand sales. We also strove to offer reliable after-sales services, enhance responsiveness to largeorder customers and provide solutions for logistics issues through the introduction of optimally packaged systems. In the fieldof lift trucks, we made efforts to increase our product lineup in each region and promoted the development of autonomous
driving technology internally and with external organizations. Our latest products and solutions were showcased at Logis-Tech
Tokyo 2022 under the themes of “safety, decarbonization and automation.” We also worked to reinforce our IT-based services,enhance safety and augment our competitiveness in the environmental field mainly through electrification in order to ensure amore accurate response to the needs of individual customers.
In the logistics solutions field, we have been fostering cooperation in sales activities by mutually supplying equipment andsystems while encouraging each TALG company to leverage its strengths to bolster business. We have also been accelerating
coordinated activities such as promoting collaborative efforts by TMHG and TALG in the planning and development fields.
As specific examples, we have been promoting cooperation mainly with T-Hive B.V., a company newly established in the
Netherlands, in the development of a seamless control system encompassing all autonomous vehicles, as well as collaboration
with viastore in small- to medium-scale projects in Europe.

20

Toyota Industries Report 2023

Meanwhile, Aichi Corporation, which possesses the top brand*4 in the field of aerial work platforms in Japan, saw a recovery
in capital investment mainly in the electric power industry. As a result, sales amounted to ¥60.6 billion, up ¥4.0 billion, or 7%,
from the previous fiscal year.
*4: Survey by Aichi Corporation

Activities of TMHG
Japanese Market
In 2022, the Japanese lift truck market saw only a slightincrease in sales from the previous year due mainly to theimpact of the spread of COVID-19 variants. Unit sales ofToyota Industries’ lift trucks increased 4% from the previous
fiscal year to 49,000 units, and maintained the top position*5
in fiscal 2023 for the 57th consecutive year.
The diversification of customer needs, heightenedon the back of changes such as an expansion of the
e-commerce market, labor shortages and growing safety
and environmental consciousness among companies, has
further accelerated. As the leading manufacturer of materials
handling equipment, Toyota Industries has been proactively
promoting the development and release of new products thatlead to resolving issues facing customers.
Amid the accelerated move in Japan toward achievingcarbon neutrality, Toyota Industries released a new fuel cell
lift truck in September 2022. The price of the new lift truck
has been reduced by 30% thanks to a significant reductionin the cost of the fuel cell system, and durability*6 has been
doubled*7 compared to the previous model.
Also in September 2022, Toyota Industries participatedin Logis-Tech Tokyo 2022 under the concept of “Varying
Optimum Solutions for Varying Logistics Sites: A Just
Solution for Your Logistics.” Based on the three themes of“safety, decarbonization and automation,” which represent
issues recently facing customers in their respective logistics

sites, we exhibited our latest lift trucks in addition tologistics solutions that incorporate leading-edge automation
technologies. Our booth, which was one of the largest
among the participating companies, was visited by some
21,000 customers.
At our booth, we demonstrated the operations of our
new autonomous lift truck capable of automated loadingeven when the truck’s stopping location and load position
are not fixed. This capability has been achieved throughsuch technologies as guideless automated driving using
3D-LiDAR*8 and pallet location and position detection using
image recognition.
*5: Calculated by Toyota Industries Corporation based on the data issued by the Japan
Industrial Vehicles Association*6: Output performance maintenance period of FC systems (period that the output canbe maintained at 80% or more of the performance at the time of shipment)*7: Survey by Toyota Industries Corporation, based on JIS D6202 (60S fuelconsumption pattern of internal-combustion lift trucks)*8: A sensor that can accurately measure the distance to an object by emitting a laser
beam onto it and measuring the reflected light

New fuel cell lift truck

TMHJ booth at Logis-Tech Tokyo 2022

North American Market
The rapid expansion slowed down in the North American lift
truck market in 2022, and on a full-year basis, the market
remained on par with 2021. Orders increased as we captured
the strong demand in the e-commerce and retail sectors
and resumed the shipment of certain internal-combustion lift
trucks. Against this backdrop, the combined unit sales of the
TOYOTA and RAYMOND brands in fiscal 2023 increased by
29% over the previous year to 98,000 units.
In fiscal 2023, Toyota aggressively launched an operator
assist system that detects pedestrians and objects behindthe lift truck to ensure greater safety and security at
customers’ logistics sites as well as new electric lift trucks
in response to growing market needs for electrification. We
also added more than 30 operator assist and other functions
to our three-wheel electric lift trucks. In addition, to meetthe rising need for logistics automation on the back of labor
shortages, we sell an automated guided vehicle (AGV)that can be customized
according to customer
needs and requires nolarge-scale building
modifications.
Raymond is also
actively expanding its
product offerings andThree-wheel electric lift truck
services to meet various
to which operator assist and other functions
have been added
customer needs. For
example, Raymondenhanced sales of compact and highly functional lithiumion batteries that reduce the charging time comparedwith conventional lead-acid batteries and contribute to
the improvement of customer productivity. Raymond isalso contributing to the further improvement of customer
safety by releasing an electric low lift truck equipped with a21

Business Activities

Top Message

Value Creation

Initiatives for Growth

Promotion of ESG
Initiatives

Corporate andFinancial Information

Business Activities

telematics function and launching a service to support driving
in dangerous areas by linking the telematics function with thereal-time location measurement system.
Looking ahead, we will continue to leverage the strengthsof each brand and reinforce technological development
to meet electrification needs. In addition, through closer

collaboration with the Logistics Solutions Business, wewill accurately respond to customers’ needs for logistics
automation. At the same time, we will strive to expand thelineup of products with excellent environmental performance,
while responding to the accelerating trend toward carbon
neutrality by utilizing the latest technologies.

European Market
In 2022, the European lift truck market slowed down due tosupply chain disruptions and the conflict in Ukraine. Toyota
Industries posted unit sales of 99,000 units in fiscal 2023,
up 8% from the previous fiscal year. In addition to equipment
sales, orders for after-sales services and sales of parts
remained steady.
In response to the accelerating trend toward carbon
neutrality in Europe, Toyota Industries has been working
to expand the lineup of products equipped with lithium-ion
batteries and released a high-output counterbalanced lift
truck as well as internal-combustion lift trucks that comply
with the latest EU emissions regulations to meet the needs ofenvironmentally conscious customers.
In terms of environmental initiatives, electricity used at all
European bases has been completely switched to renewableenergy by selecting the optimum method matched to eachbase’s energy situation. This marks the first instance in the entire
materials handling equipment industry that 100% of power issourced from renewable energy at all European bases.
As a response mainly to labor shortages, we launched
a new automated horizontal carrier. This AGV can be
combined with our existing autonomous lift trucks and awarehouse management system to achieve an even higher
logistics efficiency for the entire warehouse, and we havebeen proactively offering the resulting solution to customers.
We will continue to expand our product lineup boasting
excellent environmental performance and incorporating
autonomous driving technology.

22

Toyota Industries Report 2023

Logistics Solution Division of Toyota Material Handling Japan
In recent years, labor shortages and an increase in logistics
volume following an expansion of the e-commerce market
have resulted in a growing need for automated and more
efficient operations in the logistics industry. To respond tosuch issues facing customers, we have enhanced our productlineup to cover every logistics system, from autonomous lift
trucks and AGVs to the leading-edge systems for use inlarge-scale e-commerce distribution centers, and have been
receiving increasing orders for these products.
Moreover, the work style reform-related law that will
go into effect in 2024 in Japan is expected to aggravatethe shortage of truck drivers. At relay centers mandated
to be set up in accordance with the law, there is an urgent
need for better efficiency and labor saving in truck loading
and unloading operations. Automation of truck loading andunloading operations using lift trucks has lagged even at
cutting-edge distribution centers. To counter these issues,

we have developed an autonomous lift truck that features theworld’s first AI-based technology to automatically recognize
the location and position of the truck and its cargo and runs
autonomously to conduct loading and unloading operations.
We exhibited the lift truck at Logis-Tech Tokyo 2022.
We have been receiving inquiries for this lift truck frommany customers. In the future, we will repeat feasibility tests
in terms of safety, work
efficiency and cost andoffer the product as
an optimal solution for
individual logistics sitesof many customers,
thereby helping themcounter the impending
labor shortage in 2024.
Autonomous lift truck
for truck loading and unloading

BastianAutomated horizontal carrier

ALOMA*9 and Chinese Markets
Toyota Industries covers the ALOMA markets of some 60
countries in Asia, Latin America, Oceania, the Middle East
and Africa as well as the Chinese market. We are serving
these markets with a lineup consisting of TOYOTA, BT,
RAYMOND and Tailift brands.
The ALOMA market in 2022 outperformed the sharp
sales growth in 2021 and recorded yet another highest unit
sales while growing 109% year on year. In China, on theother hand, unit sales fell to 67% of the previous fiscal year
due in part to COVID-19, which started spreading again.
Under such circumstances, we are working to expand
the introduction of lithium-ion batteries to meet the needs
for electrified equipment whose demand is expected toincrease in step with heightened environmental awareness.
Additionally, we newly released in the ALOMA region our
SEnS+ (Sense Plus) operator assist system that detects
pedestrians and objects behind the lift truck to contribute tocustomers’ safe operations.
Customer needs will continue to diversify, including theaccelerating trend toward electrification, greater logistics
efficiency, better safety features and automation. In response,
we will continue to collect information from dealers in eachcountry and regional offices in Asia, the Middle East andSouth America in our efforts to provide products and services
that satisfy our customers.

Activities of TALG

Bastian, mainly operating in the North American market,
has been responding to the logistics automation needs ofcustomers in a broad range of fields, including the retail,e-commerce and manufacturing sectors. The businessenvironment was difficult in fiscal 2023, as a concern foran economic slowdown has grown globally. Despite thisenvironment, in addition to repeat orders for large-scale
projects based on long-standing relationships of trust withexisting customers, the company successfully received manyorders by promoting collaboration with other companies in
the Toyota Industries Group. These include an order for alarge project through collaboration with viastore; a projectthat integrates Vanderlande’s system for the first time; small-to medium-scale projects through collaboration with dealersof the TOYOTA and RAYMOND brands; and its first project
to collaborate with the Logistics Solution Division of TMHJ in
Asia. Going ahead, Bastian will satisfy the more sophisticatedand diversifying needs ofcustomers by facilitating
the development of
its own core systems
and products andtaking advantage ofcollaboration within the
Toyota Industries Group.
Bastian’s mini load autonomous vehicle(autonomous mobile robot) developed in-house

Vanderlande
SEnS+

In addition, jointly with dealers, Toyota Industries
operates a program to promote sales activities with a focus
on logistics improvement solutions and has been making
proposals to visualize customers’ logistics sites, improvetheir safety and reduce costs. Through the program, we havebeen strengthening our relationships of trust with customers
and have successfully expanded our business domains.
As a total solutions partner capable of satisfying diverse
logistics needs, we will make concerted efforts with dealers
in each country to undertake various initiatives.
*9: A LOMA is a Toyota Industries term for Asia, Latin America, Oceania, the Middle
East and Africa.

Vanderlande, offering logistics solutions globally, hasbeen accelerating system development optimized forleading companies in the warehouse logistics and parcel/
postal service industries as well as operations of focusedbusiness sectors. In this way, Vanderlande is making efforts
to strengthen its response to increasingly sophisticatedcustomer needs. It has also been working with the Logistics
Solution Division of TMHJ and Bastian to introduce its
systems into the Japanese and North American markets,
thereby successfully expanding its business domains throughcollaboration within the Toyota Industries Group.
In the airport business, demand has been showing
a gradual recovery following an upturn in the number ofpassengers. In fiscal 2023, Vanderlande captured thedemand recovery, as it concluded large-scale servicing

contracts with multiple customers and commenced
operation of its highly efficient security screening system
based on a dual-lane concept at Frankfurt International
Airport.
In these businesses, Vanderlande will work to provide
even greater value to customers for services that assume an
important role. Efforts
will be made to monitor
operational status andfacilities by using digitaltechnologies and makeproposals to optimize
operations of customers
using its products.
Security screening system

introduced for the first time23

Business Activities

Top Message

Value Creation

Promotion of ESG
Initiatives

Initiatives for Growth

Corporate andFinancial Information

Business Activities
Link toproduct
details

Automobile

In the fields ranging from vehicles to engines, car air-conditioning compressors, electronic devices and batteries,
Toyota Industries continues to meet the expectations and trust of its customers.

Business Characteristics

Net Sales

Operating Profit

FY2022

FY2022

Strengths• An agile structure to undertake all aspects from planning anddevelopment to production within a plant (Vehicle)¥792.8 billion• Highest-level production efficiency and quality among all
Toyota-affiliated automobile body manufacturers (Vehicle)• Know-how on the development and production of diesel
engines and turbochargers (Engine)• Highly efficient production of high-quality gasoline engines,
including those for use in hybrid electric vehicles (HEVs) (Engine)• Excellent product development capability centered around fuelefficiency and car electrification (Car air-conditioning compressor)• Global top-share*1 products for use in a full range of vehicles,from internal-combustion vehicles to HEVs, plug-in hybrid electricvehicles (PHEVs), battery electric vehicles (BEVs) and fuel cellelectric vehicles (FCEVs) (Car air-conditioning compressor)

FY2023957.8 billion

300• Development and production of electronic components anddevices for electrified vehicles, with top-level quality (Electronics)

Engine Sales• Material synthesis technology, simulation technology for examining
materials and structures and analysis technology (Battery)800• Shrinking of the automobile market caused by economic
slowdown• Customers becoming less willing to buy fuel-efficient products
following less stringent environmental regulations• A drop in product competitiveness due to the yen’s appreciation
or inflation• Suspension of production caused by supply chain disruptions*1: Survey by Toyota Industries Corporation

We will contribute to TMC as a development and production base of compact sports utility vehicles (SUV) by leveraging
our comprehensive strengths derived from the highest level of safety, environment, quality, cost and delivery (SEQCD)
among all Toyota-affiliated automobile body manufacturers and through greater collaboration within the Toyota Industries
Group.

Business Overview in Fiscal 2023
In fiscal 2023, sales of the RAV4 decreased outside Japan, offsetting an increase in the domestic market. As a result,unit sales declined by 18,000 units, or 6%, to 290,000 units. Net sales decreased by ¥0.3 billion, or 0.4% year on year,to ¥83.1 billion.

Commencing Production of a Special-Edition RAV4 with a Stronger
Off-Road Feel

200

(FY)

Risks

Medium-Term Direction of Business(Thousand units)• Technical expertise in electronics accumulated through handling
projects for Toyota Motor Corporation (TMC), external sales,
and in-house projects (Electronics)• Sales expansion in each sector in line with growth of theautomobile market

34.6 billion¥

Vehicle Sales

100• Increasing needs for fuel-efficient products due to stricter
environmental regulations and growing environmental
consciousness

FY2023¥• Monozukuri (manufacturing) using equipment created in-house to
produce high-quality products and flexibly accommodate changes
in production volume (Car air-conditioning compressor)

Opportunities¥33.0 billion

n Vehicle

0
19

20

21

22

23

(Thousand units)

600
400

vehicle has been planned, proposed and adopted based on
the results of a survey conducted on models we exhibited at
Tokyo Auto Salon 2021.
*2: TMC’s advanced preventive safety package
covering situations prone to traffic
accidents*3: All-terrain tires for use in wide-ranging
applications, from paved to rough surfaces
Adventure “OFFROAD package II”

Proposing “RAV4 Customizing Service” at Tokyo Auto Salon 2023

200
0
(FY)

Toyota Industries partially upgraded the RAV4 in October
2022 to expand the functionality of Toyota Safety Sense*2,
and created a special edition, the RAV4 Adventure“OFFROAD package II.” This special-edition vehicle is fittedwith 18-inch all-terrain tires*3 and has a 10 mm higher
minimum ground clearance to more strongly emphasize theoff-road image of the RAV4. Its particularly distinguishingmatt and uneven surface black paint (“GORI GORI BLACK”
paint) applied to the front bumper and other parts of the

19

20

21

22

23

Compressor Sales(Million units)

30
20

Under the mantra “Make even better SUVs” to see a smile ofjoy from our customers, we are working with TMC to makethe RAV4 a more attractive SUV. Since Tokyo Auto Salon
2020, we have showcased outdoor and professional concept
models of the RAV4. In 2023, instead of exhibiting readymade concept models, we proposed a service to customize
the RAV4 according to customers’ preferences and displayed
three customized models with a stronger off-road or onroad appeal. Using the RAV4 PHEV manufactured by Toyota

Industries as a base model, these vehicles were equippedwith carefully selected parts made by other companies. To
ensure customers’
smiles of joy with ourRAV4, we will continue
to plan various
campaigns with theirpoint of view in mind.
Toyota Industries booth

10
0
(FY)

TOPIC
19

20

21

22

Winning the Most Excellent Karakuri Kaizen Award for the First Time23

At the Karakuri KAIZEN*4 Exhibition 2022 hosted by the Japan Institute of Plant Maintenance, Toyota Industries’ slope
climbing system was selected among 224 projects of 62 companies and received its first*5 Most Excellent Karakuri
Kaizen Award. The Assembly Section of the Manufacturing Department, Vehicle Division, created a non-powered
mechanical system to let parts trays climb a slope. The aim was to eliminate the difficulty of the tray setting operation,
which used to involve lifting a tray from the ground level and setting it on a worktable. The system uses pulleys and theprinciple of leverage to convert the motion of horizontal sliding (pushing a tray
aside) to that of vertical sliding (letting a tray climb a slope). The project wasrecognized for its simple karakuri system only requiring minimum operator action,
which in turn reduces the operating time.
*4: Achieving kaizen (improvement) at low cost by karakuri (Japan’s traditional, non-powered mechanical systems
that utilize gravity, the principle of leverage, etc.)*5: Toyota Industries has been participating in the exhibition since it was first held in 1994 and has received an
Excellent Karakuri Kaizen Award three times in the past.

24

Toyota Industries Report 2023

Project members receiving the award25

Business Activities

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Value Creation

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Business Activitiesn Enginen Car Air-Conditioning Compressor

We have suspended the shipping of certain engines we manufacture for lift trucks for the Japanese market, as we haveconfirmed the excess over the domestic (Japanese) emissions regulation values due to aging degradation, and potential
violation of regulations related to Japanese certification for emission. Based on the decisions and instructions of therelevant Japanese authorities, we will put all our efforts into measures toward resuming shipping and corrective measureson already sold products, as well as recurrence prevention.
For the prevention of recurrence, there is an ongoing investigation by a special investigation committee consisting of
independent external experts, in addition to the investigation led by external lawyers. We will clarify the details of the caseand analyze the root causes of these issues, and compile recurrence prevention measures based on the findings. At thesame time, we have already been doing whatever we can at present, such as separating the certification function from ourdevelopment department to reinforce the inspection system for legal certifications. (As of June 30, 2023)

Unit sales in fiscal 2023 totaled 847,000 units, an increase of 43,000 units, or 5%, from the previous fiscal year due
mainly to a growth in sales of gasoline engines. As a result, net sales increased by ¥54.8 billion, or 20% year on year, to¥322.4 billion.

Diesel Engines Multipurpose Vehicle (IMV) series targeting emerging
countries and the HiAce.
The V-type 6-cylinder F33A diesel engine, anothermainstay product of ours, is fitted in the Land Cruiser “300.”
With a view to the era of carbon neutrality, the engine
has been downsized from the previous eight cylinders to
six cylinders to reduce mass. Adoption of the twin turbo
developed in-house also realizes high levels of environmental
performance and quiet operation while allowing the vehicle tomaintain the output and rough-surface running performancerequired of the Land Cruiser.

Gasoline Engines 
A25A engine to our lineup.
In response to the growing demand in the Indian market
for engines for use in HEVs, Toyota Industries Engine
India Pvt. Ltd. (TIEI), a consolidated subsidiary in India,
commenced production of the 1.5-liter M15A and 2.0-liter
M20A engines in August 2022.

26

Toyota Industries Report 2023

The growth of the car air-conditioning compressor market is
expected to be slower than anticipated due to the lingering
uncertainty of parts supply shortages as well as prolonged
geopolitical risks. That said, we expect that the growth willcontinue over the medium term on the back of expanding
automobile sales and an increase in the number of vehicles
fitted with an air conditioner. As new developments in theautomobile market, especially for electrified vehicles, by2035 all automobiles sold in China must be electrified*9 andsales of internal-combustion vehicles, including HEVs and
PHEVs, will be banned in Europe. In light of such tightening
regulations and expanding needs in various countries andregions, automakers are aggressively releasing new models,and unit sales of electrified vehicles are expected to increasesignificantly in the future.
*9: Announced by the Chinese Society of Automotive Engineers

Expansion of Electrified Vehicle Market
Amid the growing demand for electrified vehicles due toheightened environmental awareness and more stringent
regulations on internal-combustion vehicles around theworld, demand for electric compressors is expected to
exceed the demand for compressors for internal-combustion
vehicles in 2028, driven particularly by a sharp increasein BEV sales in the Chinese market. In step with thisdevelopment, we are enhancing our electric compressor
lineup and strengthening our production structure to increase
sales to automakers around the world.

Demand Forecast by Compressor Type*10(Million units)
90

60

30

*6: Development policy and method for vehicle creation based on a modular platform
0

(FY)

2023

2026
Electric typeEngines for Industrial Fields 
Toyota Industries’ engines for industrial fields are used
for a wide variety of applications, including our lift trucks,
and adopted by many manufacturers of GHPs*7, CHPs*8,

In fiscal 2023, unit sales of car air-conditioning compressors increased 2.184 million units, or 8%, from the previous
fiscal year to 30.937 million units due mainly to higher sales in North America and Europe. Net sales were up ¥73.6
billion, or 21% year on year, to ¥429.7 billion.

Environment Surrounding the Automobile Market

Engines for Automobiles

The gasoline engines that we produce under consignment
from TMC, namely the 2.5-liter A25A and 2.0-liter M20A,
are mainly fitted in the RAV4 and HARRIER, which areachieving robust sales. Developed based on the Toyota
New Global Architecture (TNGA)*6 concept, these engines
offer both excellent driving performance and environmental
performance. Responding to the advancement of car
electrification, we have also added an HEV version of the

In a future society in which significant advancement in car electrification and autonomous technology is expected,
we aim to leverage our core compression technology and become an innovative component supplier. We will further
enhance our capability to develop products that offer excellent fuel efficiency, quieter operation, compactness, lightweight and easier vehicle mounting. In addition, with the aim of satisfying needs of a broader variety of customers, wewill utilize our accumulated technologies to expand our development domain into core components for drive systems.

Business Overview in Fiscal 2023

Business Overview in Fiscal 2023

Even amid the accelerated progress in vehicle electrification,
there is diverse and strong demand, mainly in emerging
countries, for diesel engines, which boast high durability andsuperb running performance, as a power unit suited for SUVs
and such commercial vehicles as pickup trucks.
Compliant with fuel efficiency and emissions regulations
in various regions and countries, the in-line 4-cylinder GD
diesel engine, which constitutes one of our mainstay engines,
has been introduced in more than 150 countries around theworld, mainly in Asia and Latin America, and fitted in ninevehicle models, including TMC’s Innovative International

Medium-Term Direction of Business

2029

2031

Internal-combustion type*10: Survey by Toyota Industries Corporation

generators and construction machinery.
*7: Short for gas heat pump; air conditioner driven by a gas engine*8: Short for combined heat and power; co-generation system

27

Business Activities

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Value Creation

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Initiatives for Growth

Corporate andFinancial Information

Business Activities

Expansion from Air Conditioner Parts to Core Components of Electrified
Vehicles Driven by Diversifying Needs
With the growth in electrified vehicles, there have been new
challenges for BEVs as vehicles, creating a need for electriccompressors to diversify. In response, we are rolling out new
products tailored to such new needs by utilizing our productdevelopment capabilities cultivated to date.
As electrified vehicles need to secure a heat source that
substitutes for the exhaust heat of the engine when running aheater, it has become necessary to operate the compressor
during the cooling and heating of the vehicle interior. With theaddition of heat pump heating, which takes heat from the air,
it is now required to extend compressors’ uptime and range

of use. As such, we are working to improve the reliability ofelectric compressors and achieve higher efficiency to reducethe impact on vehicle driving range.
To prevent battery performance deterioration andshortened life during high-power operation and quick
charging of vehicles, compressors also need to provide afunction for cooling the battery in addition to heat-pump
air-conditioning. We have developed and released largecapacity electric compressors as a core component ofelectrified vehicles, thereby satisfying the varying needs ofelectrified vehicles with our extensive product lineup.

the Higashiura Plant in Japan and TACK and assembly lines
at the Kariya Plant. Believing that producing and supplying
products close to our customers will lead to improving ourcompetitiveness, we are also considering local production in

Europe and the United States depending on future orders.
*11: Regulation in China mandating automakers to produce a certain percentage of
BEVs and other new energy vehicles

Worldwide Bases of Car Air-Conditioning Compressors (As of March 31, 2023)

TDDK
DNDE

Germany

Germany

Notional image

YST

DICH

MACI

China

China

U.S.A.

DIAM

U.S.A.

HEV

BEV

TICO

DNTS
Heating

Cooling

TACG

Japan

Italy
SUBROS

TACK

India

China

Cooling

U.S.A.
TICA

U.S.A.

TACI

Indonesia

DNBR

Battery temperature control

Electric compressor

BrazilElectric compressor

Consolidated production bases
Vehicleinterior
cooling

Needs of
BEVs

Vehicleinterior
heating

Batterytemperature
control

Electric
compressor
for BEVs

Large
capacitythrough responding to the stringent demands of automakers
worldwide and by developing devices from processing
machines to associated cutting tools in-house.

Establishing Stronger Global Production and Supply Structures
In step with the move toward more stringent fuel efficiency
regulations and car electrification, the car air-conditioning
compressor market is expected to witness fluctuations
in demand for compressors both for internal-combustion
vehicles and electrified vehicles. In response, we arebuilding a production structure less vulnerable to changes in
production volume through such measures as automating
our plants to save labor, designing mixed lines that enable
the production of a wide variety of products and creating aframework to increase production capacities in a phasedmanner.

28

Toyota Industries Report 2023

Technical service stations*12: Survey by Toyota Industries Corporation

Long life

Production-Related Strengths Underpinning Quality and Performance
High-precision machining and assembly technologies are
essential in realizing high quality and superior performance of
products. Toyota Industries realizes high-speed and highprecision machining by leveraging its know-how accumulated

Licensed manufacturers

Toyota Industries’ car air-conditioning compressors are widely adopted by automakers around the world, garnering the No. 1*12 position in global sales.

Meanwhile, electrified vehicles are rapidly becoming
popular in China driven by the country’s new energy vehicles(NEV) regulation*11. To capture booming demand, we
have already initiated local production at TD AutomotiveCompressor Kunshan Co., Ltd. (TACK) in March 2020 and at
Yantai Shougang TD Automotive Compressor Co., Ltd. (YST)
in June 2021. Led by China, electrified vehicles are expectedto spread globally faster than previously anticipated. To
respond to the rising demand for electric compressors, wewill set up a structure to manufacture 10 million units globallyby increasing the production capacity of processing lines at

TOPIC

Winning a 2022 JSME Medal for New Technology and Technological Development Award

Toyota Industries’ new scroll profile, newly adopted in its electric compressors, has won
two awards, a 2022 JSME Medal for New Technology by The Japan Society of MechanicalEngineers (JSME) and a Technological Development Award at the 73rd Society of Automotive
Engineers of Japan Award. In electric compressors, a larger capacity and higher-speed
rotation cause greater excitation force when compressing the refrigerant, which in turn resultsin more noise and vibration. To address this issue, we engaged in joint research with Toyota
Central R&D Labs., Inc. to advance their new tooth design theory*13 originally established forgears and created a new scroll profile in which compression force and gear thickness can be
set at required values. Our success in leveraging this technology to develop and commence
production of a low-noise electric compressor with less compression force fluctuations wasrecognized as groundbreaking and socially significant. Toyota Industries will continue tocontribute to the realization of a recycling-based society through the development of electriccompressors.

Scroll part

Cross-section diagram ofelectric compressor(Conventional
profile)(New profile)

Scroll profile*13: A theory to design an optimum spiral profile, which had been univocally determined against the targeted performance, by using
a solution that integrates geometry and dynamics

29

Business Activities

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Business Activitiesn Electronic Devices and Other Products
Medium-Term Direction of BusinessCar electrification is steadily progressing, as evidenced by an increase in sales of various electrified vehicles, such as
HEVs, PHEVs, BEVs and FCEVs, amid the accelerated global trend toward a decarbonized society. The Electronics andBattery divisions will contribute to car electrification in a broad range of fields through the development of new productsby leveraging technologies cultivated to date.

Business Overview in Fiscal 2023
Higher sales of batteries and DC-DC converters resulted in an increase in net sales by ¥37.0 billion, or 43%, over theprevious fiscal year to ¥122.5 billion.

outdoor activities. The inverter, which used to be provided
mostly as an option by automakers, is now increasinglyoffered as a standard feature for all or certain grades ofvehicle models mainly sold in Japan.
In February 2023, Toyota Industries held an event
to outline to customers the benefits of the 1,500-W AC
inverter’s power source functionality. It was held during avehicle exhibition hosted by a car dealer and included a quizon how many electrical appliances, such as a microwave
oven, personal computer and electric blanket, can be usedsimultaneously using the power fed by an electrified vehicle.
Through the quiz and other activities, many customers
observed the convenience of using an electrified vehicle asa power source during outdoor activities, workation*15 andpower outages. While describing the capabilities, we also
asked customers to provide their opinions about the appeal
and usability of the power source. Through such activities,
we will promote product development that will lead to morewidespread use of electrified vehicles.
*15: A coined word that combines “work” and “vacation,” workcation is a way of
spending vacation while working at a resort or travel destination

Toyota Industries boothSnapshot of the experience-based event

Batteries
Electronics

Increasing Models Equipped with Our Bipolar Nickel-Metal Hydride Batteries

Contributing to More Widespread Use of Electrified Vehicles Globally
through Electronics Products
Since the 1990s, Toyota Industries has developed andmanufactured such electronic products as on-board
chargers and DC-DC converters for TMC’s HEVs andother electrified vehicles and honed its power electronics
technologies. In April 2022, while leveraging our accumulated
technologies and experiences, we developed a compact
and lightweight unit for BEVs, which integrates an on-board
charger and DC-DC converter. Incorporated in the electricity
supply unit (ESU)*14, which TMC adopted for BEVs for the
first time, the product serves as a core unit for charging andpower conversion function and is mounted in the bZ4X BEV.
By integrating an on-board charger and DC-DC converter
essential for running a BEV, the new unit is 23% smaller insize and 17% lighter in weight versus separately mounting
the two devices.
In January 2023, our newly developed compact andhigh-current DC-DC converter for HEVs was adopted in

TMC’s fifth-generation Prius. A DC-DC converter is a powersource unit that converts DC voltage into a voltage levelappropriate for individual devices. Specifically, it converts thehigh voltage (200–400 V) of batteries mounted on HEVs andother electrified vehicles into a lower voltage level (12 V) to
supply power to auxiliary batteries, control ECU, navigation
system, lights and other devices. The newly developed
DC-DC converter has a 1.5 times higher output current of
150 A compared to 100 A of conventional models and is
34% smaller.
Toward the achievement of carbon neutrality in 2050 andamid the global, rapid growth in the electrified vehicle market,
we will continue to support the more widespread use ofelectrified vehicles, such as HEVs, PHEVs, BEVs and FCEVs,
through the provision of car electronics products.
*14: A device that integrates the charging function and power distribution function of
BEVs

In fiscal 2022, Toyota Industries newly established the Battery
Division and commenced production and sales of bipolar
nickel-metal hydride batteries for TMC’s new Aqua. The
production is undertaken at our Kyowa Plant in Aichi Prefecture.
We successfully commercialized the battery by
establishing a proprietary development method by thoroughly
working to refine our technologies cultivated to date,including battery material synthesis technology, simulation
technology for examining materials and structures andanalysis technology.
In the newly developed battery, a cathode is applied to
one side of a metal component called a current collector andan anode to the other. Several of these modules, which are
known as “bipolar electrodes,” are stacked together to forma battery. The battery has been made smaller as they require
fewer parts. In addition, the wider electrical path and simple
structure reduce resistance within the battery, allowing large
currents to flow quickly. This means that they can produce
higher outputs compared to conventional nickel-metal hydride

batteries. In recognition of these excellent characteristics, thebattery won a Technological Development Award at the 73rd
Society of Automotive Engineers of Japan Award.
Following the Aqua, the bipolar nickel-metal hydride
battery, which achieves both superior driving andenvironmental performance, has been fitted in the Toyota
Crown and Lexus RX in fiscal 2023. Going ahead, we willcontinue to respond to future increases in demand.
As we proceed with various initiatives toward carbon
neutrality, we will contribute to the more widespread
popularity of TMC’selectrified vehicles withour bipolar nickel-metal
hydride batteries, which
can be fitted in a varietyof HEVs.
Bipolar nickel-metal
hydride battery

TMC’s dual boost hybrid system

Constructing the Ishihama Plant to Increase Production Capacity

Left: Newly developed unit integrating an on-board charger and DC-DC converter
Right: TMC’s bZ4X BEV

Left: Newly developed compact and high-current DC-DC converter for HEVs
Right: TMC’s new Prius

Feeding Power—A New Function and Value of Electrified Vehicles Realized
through AC Inverters
An AC inverter converts the DC voltage of on-board batteries
into AC voltage to feed power externally or to use electricalappliances within a vehicle. It can supply 1,500 W of30

Toyota Industries Report 2023

electricity, the same as household power outlets, to almost
any home electrical appliance and has been recognizedhighly by customers as a power source during a disaster or

We constructed the Ishihama Plant in Higashiura-cho in
Chita-gun, Aichi Prefecture, as a manufacturing plant for onboard batteries and commenced mass production of bipolar
nickel-metal hydride batteries for HEVs in October 2022. The
new plant operates at a production capacity of 20,000 units
per month, and, together with the Kyowa Plant that started
battery production in May 2021, we have boosted our total
capacity to 40,000 units per month.
The design of our bipolar nickel-metal hydride batteries
allows them to be adaptable to a wide range of vehicles,from compact to large ones, because their output can be
modified by just changing the number of modules to be

stacked depending on the vehicle.
To contribute to the expansion and spread of electrified
vehicles and work toward carbon neutrality, Toyota Industries
will work to ensurestable supply as well as
to enhance its lineup ofbatteries so that they
can be used in a rangeof electrified vehicles.

Ishihama Plant

31

Business Activities
Link toproduct
details

Textile Machinery

Carrying on the philosophy of founder Sakichi Toyoda, which reflects his strong commitment to manufacturing,
Toyota Industries responds to a broad range of needs with its extensive product lineup, from air-jet looms to ring
spinning frames, roving frames and quality measurement instruments for fiber, yarn and fabric.

Medium-Term Direction of BusinessWith growing environmental consciousness worldwide, needs are expected to increase further for textile machinery offeringsuperior environmental performance. Toyota Industries’ products are highly acclaimed by customers for their excellent reliability
and productivity as well as energy-saving performance. We will continue to develop energy-saving and other innovativetechnologies and seek to achieve further growth and evolution as a leading manufacturer of textile machinery.

Business Characteristics

Net Sales

Operating Profit

FY2022

FY2022¥69.2 billion¥5.5 billion

FY2023

FY2023

Strengths• Broad product lineup both in the spinning and weaving machinery fields• Global, well-developed service network• Ability to develop products that excel in reliability, energy-saving
performance and versatility

Opportunities• A rise in textile demand in line with an increase in the world population• Further increasing applications in the industrial materials field• Increasing needs for high-quality and highly functional yarn and textile
products, following the economic growth of emerging countries

Risks• Changes in each government’s policies concerning promotion of
the country’s textile industry• Weaker sales due to intensifying competition• A decline in capital investment due to economic slowdown andraw cotton and/or yarn price fluctuations

84.3 billion

7.8 billion¥¥

Air-Jet Loom Sales(Thousand units)

1086Further promoting initiatives to sustain growth in the areas ofthe environment, society and governance

4
2
0
(FY)

Promotion of
ESG Initiatives

19

20

21

22

23

Business Overview in Fiscal 2023
The market was strong in Asia, including China, which is our primary market. Increases in sales of spinning machineryand quality measurement instruments for fiber, yarn and fabric pushed up net sales by ¥15.1 billion, or 22% year on
year, to ¥84.3 billion.

Commencing Production of the New JAT910 Air-Jet LoomIn March 2023, we commenced production of the JAT910, a
new air-jet loom developed for the first time in nine years.
Air-jet looms weave textiles by inserting yarn using
compressed air and are used by customers worldwide,
including China, India, Europe and Japan. The new JAT910
has inherited and upgraded the high-speed and low-vibration
technologies and superior weaving technology, which are
the JAT series’ “genes” that have been passed on from

Environmental Initiatives........................................... P. 34–45

Relationship with Stakeholders............................... P. 46–57

model to model. It is geared to respond to labor shortages
in the manufacturing industry, growing environmental
consciousness and surging energy prices around the world.
With the upgraded technologies, the product has achieved
even higher environmental
performance and is contributing
to improving operational
efficiency at customers’ plants.

Corporate Governance............................................... P. 58–75

JAT910 air-jet loom

Participating in India ITME 2022
In December 2022, Toyota Industries participated in India
International Textile Machinery Exhibition (India ITME)
2022 jointly with Kirloskar Toyota Textile Machinery Pvt.
Ltd. (KTTM), a consolidated subsidiary producing textile
machinery in India.
We exhibited our new JAT910 air-jet loom for the firsttime to the public as well as the RX300 ring spinning frame

32

Toyota Industries Report 2023

manufactured by KTTM. They were received favorably
by many customers as we appealed to them the basic
functionality and high reliability of our products. Goingforward, we will continue to demonstrate our technologicalcapabilities that satisfy customer needs through participationin textile machinery trade shows and work to reinforce ourbrand strength to gain even greater trust from customers.

33

Environmental Initiatives

Top Message

Value Creation

Initiatives for Growth

Promotion of ESG
Initiatives

Corporate andFinancial Information

Environmental Initiatives

Promoting Environmental Management
We have been undertaking activities globally toward realizing our Environmental Vision 2050.

Seventh Environmental Action Plan

Global Environmental Commitment (Environmental Policies)
As one tenet under our Basic Philosophy, Toyota Industries
works to contribute to regional living conditions and social
prosperity and also strives to offer products and services thatare clean, safe and of high quality. Accordingly, in February
2011, we established the Global Environmental Commitment,a specific environmental action guideline, to be shared andimplemented throughout the Toyota Industries Group.
Our four main action themes are establishing a carbon
neutral society; establishing a recycling-based society;reducing environmental risk and establishing a society
in harmony with nature; and promoting environmental
management, with the first three founded on the latter. Basedon these pillars of action, the entire Toyota Industries Groupwill dedicate concerted efforts to realizing a prosperous life inharmony with the natural environment.

Aiming at building a sustainable society which enables the
harmonious coexistence of nature with our daily lives

Environmental
risk reduction
Society inharmony withnatureCarbon neutral
society

Recyclingbasedsociety

Toward the realization of our Environmental Vision 2050, we
have formulated a five-year plan, the Seventh Environmental
Action Plan (fiscal 2022 to fiscal 2026), and have beenpromoting activities accordingly.
The seventh plan has defined action policies, specificactions and targets for each of the four action themes
specified in the Global Environmental Commitment,
namely establishing a carbon neutral society; establishinga recycling-based society; reducing environmental risk
and establishing a society in harmony with nature; andpromoting environmental management. In fiscal 2023, we
showed steady progress across the board toward achieving
respective targets for fiscal 2026.
Please visit Toyota Industries’ website for details of its
Seventh Environmental Action Plan.
Link to theaction plan

Strengthening Environmental Management by Utilizing Third-Party Institutes
Environmental Management

Notional Diagram of Global Environmental Commitment

Environmental Vision 2050 and Environmental Action Plans
We have defined our Environmental Vision 2050 in relation to
the four action themes specified in the Global Environmental
Commitment, which represents our basic approach toenvironmental activities. As milestones toward achieving thisvision, we formulate five-year environmental action plans,
and the entire Toyota Industries Group works as one team toresolutely undertake activities in accordance with each plan.

Environmental Vision 2050
(1) Establishing a carbon neutral society
Globally take on challenge of establishing a zero CO2emissions society(2) Establishing a recycling-based society
Take on challenge of minimizing the use of resources(3) R educing environmental risk and establishing a society
in harmony with nature
Generate positive influence on biodiversity(4) Promoting environmental management
Enhance consolidated environmental management andpromote enlightenment activities

Environmental Management Structure
We have set up a Company-wide environmental
management system (EMS) with the president at the
top to quickly reflect top management’s decisions on
business operations. On the basis of this environmental
management structure, which is aligned with our business

management structure, we have been reinforcing ourenvironmental governance and promoting a further reductionof environmental impact resulting from product development
and production activities.

n Environmental Audits
Toyota Industries implements annual internal environmental
audits as well as external audits carried out by anindependent third-party institute.
In fiscal 2023, the external review identified no nonconformance issues. The review, however, pointed out somematters that could potentially constitute non-conformance.
We have been making improvements regarding thesematters and sharing details throughout our plants.
Meanwhile, we organized audit teams led by respective
environmental administrative offices to increase audit
efficiencies and conducted an audit mainly concerning
departments that have faced changes involving auditing
items. The focus of our audits was placed on environmental

Environmental Education
Toyota Industries has built environmental education programs
matched to the environment-related knowledge and skills
required for each job category and position. We intend to
upgrade the level of environmental initiatives throughout
Toyota Industries by providing a variety of environmental
education programs, such as grade-based education,
introductory courses for environmental management andenvironmental audits as well as education on environmentallyfriendly products.

President

policy management and on-site environmental management,
and we clarified how environmental activities have beenpromoted in each division.

n Acquisition of ISO Certification

In order to facilitate environmental initiatives in a more
efficient and organized manner, Toyota Industries andits consolidated production subsidiaries have acquired
ISO 14001 certification, the international standard forenvironmental management systems. Please visit our
website for Toyota Industries
bases that have obtained the
Link to details
certification.

TOPIC

Establishing an Environmental Dojo

Kirloskar Toyota Textile Machinery Pvt. Ltd. (KTTM),
a subsidiary manufacturing textile machinery inIndia, has established an in-plant environmental dojo
under the theme, “Five Acts to Save Our Future” toencourage everyone to think about the environment
and act on his or her own. It is used to raise
environmental awareness of not just employees but
also important stakeholders, such as suppliers andcustomers.

Environmental Committee
Internal audit
Responsible internal auditor

Specialized committees
Chief environmental administrator

Product Environment Committee
Dojo opening ceremony

Production Environment Committee

Head Office functions

Introductory courses for environmental management

Divisions
Division-Based Promotion Committees

Environmental Conservation Organization by manufacturing plants

34

Toyota Industries Report 2023

35

Environmental Initiatives

Top Message

Value Creation

Initiatives for Growth

Promotion of ESG
Initiatives

Corporate andFinancial Information

Environmental Initiatives

Activities to Raise Employees’ Environmental AwarenessReceiving the Highest Rating in a Survey by CDP*1 on Climate Change

To provide opportunities to raise employees’ environmental
awareness and encourage their voluntary environmental
actions, we have been featuring environment-related articles
in our internal newsletters and posting environmental inhouse newspapers on our intranet.
We have also been promoting awareness-raising
activities to extend our reach from employees to theirfamilies.
In fiscal 2023, as an opportunity for employees to think
about what they can do to protect biodiversity, we solicited
photographs and anecdotes about local wildlife that wereamazing, amusing or made them want to tell others.

Toyota Industries was selected for the highest A List in asurvey conducted by CDP on climate change as a company
making especially outstanding efforts to reduce greenhousegas emissions and mitigate climate change.
Our efforts to counter climate change were highly
recognized through a comprehensive evaluation and haveresulted in the selection for the A List. These efforts include
the establishment of the Company-wide EMS led by thepresident, the development of products with excellent
environmental performance and the reduction of CO2

emissions from production activities.
Going ahead, we will continue to tackle
climate change as one important issue andcontribute to the realization of a sustainable
society through our global environmental
conservation activities.
*1: An international NGO running a project in which institutional investors work together
and request companies around the world to disclose their strategies against
climate change and greenhouse gas emissions data

Winning JEC Composites Innovation Awards
Giving Awards to Internal Environmental Kaizen (Improvement) Activities
We have an internal award program to recognize excellent
environmental activities undertaken within Toyota Industries.
The best practices are applied throughout the Company toupgrade our overall environmental activities.
Among activities conducted for curbing global warming,
efficiently improving resource productivity, reducing
environmental risk and conserving biodiversity, we selectexcellent projects with uniqueness and originality of the idea,
applicability and effectiveness in mind.
In fiscal 2023, the program received 43 applications
across Toyota Industries. After the initial screening of
documents and a second screening involving on-site
inspections, we selected one Most Outstanding PracticeAward, two Best Practice Awards and two Excellent PracticeAwards.

Secondary screening by on-site inspectors

Winning a Minister of Economy, Trade and Industry Award in the Energy
Conservation Grand Prize
In fiscal 2022, a project by the Anjo Plant in Aichi Prefecture
to neutralize static electricity and consequently relax in-plant
air-conditioning criteria received a Best Practice Award under
our internal award program. The project subsequently won
a Minister of Economy, Trade and Industry Award, which is
the highest level award in the 2022 Energy Conservation
Grand Prize program (Best Practice Category) sponsored by
the Energy Conservation Center, Japan. This award program
recognizes outstanding energy-saving products and energysaving efforts of business operators or business sites.
Conventionally, the Anjo Plant, which manufactureselectronic devices and components for electrified vehicles,
had air-conditioned the entire plant all year to strictly control
humidity and protect products from damage caused by static
electricity. Especially during winter, when the humidity drops,
the plant required a large quantity of steam for humidification,
which pushed up its energy (LNG) consumption for airconditioning and presented an issue in the plant’s efforts
to save energy. In response, the Production Engineering,
Quality Control and Manufacturing departments worked

36

Toyota Industries Report 2023

together to change the method of controlling static electricity
from humidifying the entire plant to using static electricity
neutralizers only in applicable processes. The award program
highly recognized the project for its accomplishments,
namely simplified in-plant humidity control and a 40%
reduction in energy used for air-conditioning, as well as for
how the countermeasure was devised and implemented.

Toyota Industries won awards in the Circularity & Recycling
Category of the JEC Composites Innovation Awards program
for the carbon fiber reinforced plastics (CFRP) recycling
technology we developed and the comprehensive CFRP
recycling system we aspire to build. The JEC Group ofFrance, promoting the composite material industry andtechnology development thereof, has hosted the awards
every year since 1998 to recognize the world’s mostinnovative composite material products and technologies.
Toyota Industries received the awards for the first time.

Awards ceremony in Paris, France

Status of Compliance withEnvironmental Laws

Soil and GroundwaterContamination Countermeasures

With an eye to preventing violations of environmentrelated laws, Toyota Industries takes measures against
the recurrence of potentially serious near-accidents that
may result in legal violations and performs environmental
risk inspections at its plants. In fiscal 2023, there was one
case of violation of water quality-related laws at one of ourconsolidated subsidiaries in Japan. We have carried out
appropriate action to counter it as per the instructions of theauthorities and thoroughly implemented measures to prevent
recurrence.

Toyota Industries carries out surveys and purification ofsoil and groundwater contaminated from the past use oftrichloroethylene and other substances of concern. As ameasure to prevent pollution from substances coveredby the Soil Contamination Countermeasures Law as well
as from grease and oils, we conduct periodic checks on
groundwater. We regularly report the survey results to local
government authorities and provide information at local
community meetings.

Verification by a Third Party
Toyota Industries obtains third party verification in order toincrease the credibility of its data on energy-derived CO2
emissions, waste volume, water withdrawal and wastewater
discharge.
We will continue to utilize this third party verificationin making continuous improvements in our environmental
activities and disclose data to our stakeholders in amore transparent manner. Please visit Toyota Industries’
website for the third-party verification statement and ourenvironmental performance data.
Link to the thirdparty verification
statement

Link to theperformancedata

Members of the Production Engineering Dept., Electronics Div.

37

Environmental Initiatives

Top Message

Value Creation

Initiatives for Growth

Promotion of ESG
Initiatives

Corporate andFinancial Information

Environmental Initiatives

Establishing a Carbon Neutral SocietyWith regard to contributing to the prevention of global warming as one of our top-priority issues, we strive to reduce
CO2 emissions from product use and the amount of energy consumed in all activities of our business sites. Throughthese initiatives, we are striving to minimize CO2 emissions throughout our supply chain.

Our Approach

CSR Material Issue

For Toyota Industries, dealing with global warming is not just a “risk.” It also presents “opportunities” in doing businessto both differentiate ourselves by leveraging our technology-based product appeal and conduct eco-conscious
production activities.
Meanwhile, we have set a goal of establishing a zero CO2 emissions society on a global basis in our Environmental
Vision 2050 and have been making efforts in various fields. In terms of product development, our activities are geared
toward enhancing the environmental performance of our products in each of our businesses. These initiatives include
electrifying car air-conditioning compressors and other products as well as increasing engines’ fuel efficiency. In
production activities, promoting thorough energy savings and utilizing renewable energy and hydrogen are the twopillars of our activities. As specific efforts, we have been striving to thoroughly eliminate wasteful use of energy inproduction processes and increase the efficient use of energy. We have also adopted solar and other renewableenergy sources and have been effectively utilizing clean energy, such as hydrogen.

Case Example: Reducing Energy Consumption through Improved Heat
Balance
The Higashichita Plant, a foundry part and engine production
base in Aichi Prefecture, has implemented a project toreduce its energy consumption with a focus on heating
facilities, which were found to consume a large quantity ofenergy in a survey conducted on production facilities.
The plant has previously undertaken various energysaving activities because reducing energy used by its
industrial furnaces is a challenge facing the plant as amanufacturer of engine parts.
In fiscal 2023, the plant launched an initiative based on
the idea that identifying wasteful use of energy while paying
attention to a balance between energy input into furnaces
and net energy used in manufacturing processes might leadto an effective reduction in energy use.
The plant conducted a survey on an aluminum melting
furnace and cast iron heat treatment furnace, two particularly
large consumers of energy. It identified the source forconsiderable energy loss for the aluminum melting furnace tobe heat dissipation from the furnace body and the outlet ofmolten metal. For the cast iron heat treatment furnace, heatdissipation from the furnace body and heating of workpiecetrays were found to be the primary causes. Accordingly, theplant adopted measures to counter each problem.

(Left) Tatsuhiko Sugie
Team leader, Foundry Section 1,
Manufacturing Office, Foundry
Dept., Engine Div.
(Center) Wataru Ichiyanagi
Environment Group, Safety &Health Dept., Engine Div.

Reducing Tray Weight to Reduce Energy Used for Heating(Right) Akira Okubo
SL, Foundry Section 2,
Manufacturing Office,Foundry Dept., Engine Div.

Before improvement

As of March 31, 2023

After improvement

Lighter weight at the same strength38

As a measure against the common issue of heatdissipation from the furnace body, the plant attachedinsulation panels and applied thermal barrier coating to thefurnaces and successfully reduced the heat released fromtheir bodies. For the heat dissipating from the molten metaloutlet of the aluminum melting furnace, a larger and thicker
outlet cover was effective in increasing heat insulation andreducing heat release. As for the heating of workpiece traysof the cast iron heat treatment furnace, the plant modified thetray structure by reducing weight at the same strength andsucceeded in reducing the energy used for heating.
These and other comprehensive measures have resulted
in an annual reduction of CO2 emissions by about 242 tons.

Toyota Industries Report 2023

Case Example: R educing Energy Consumption by Changing the Heat
Control of a Painting Drying Oven
The Takahama Plant, a materials handling equipment
production base in Aichi Prefecture, has been facing an
increase in energy consumption due to expanding production
volume. In particular, the heating burners of a painting drying
oven were using a considerable amount of city gas.
As part of its energy-saving activities, the plant has
already installed curtains at the opening of the oven to
trap heat. However, eliminating the heat loss has caused
the oven’s internal temperature to easily exceed the set
temperature even when the burner output is set to theminimum, leading to excessive use of gas. Because major
upgrading was difficult for this old oven and its burners were
just updated, the plant tried to use its ingenuity and exploredother ways to reduce the amount of gas used by the burners
at a minimum cost.
The drying oven has a main burner to maintain theinternal temperature at a set level and a pilot burner that is
only used when helping to ignite the main burner. Previously,
the main burner had continued to operate even after theAfter improvement

Before improvement

Temperature

TemperatureSet
temperatureSet
temperature
Time

ON
OFF

Time
ON
OFF

internal temperature reached the set level. Instead, theplant decided to continuously use the pilot burner, which
consumes less gas, to shut off the main burner when the set
temperature is reached and reignite the main burner when
the temperature drops. In this way, the plant successfully
reduced its gas consumption while maintaining the desired
temperature.
Through the improvement, the plant was able to reduce
its annual CO2 emissions by about 71 tons.

Shunsuke Sawada

Painting Production
Engineering 2G, Painting
Production Engineering Office,Production Engineering Dept.,
Toyota Materials HandlingJapan
As of March 31, 2023

The project initially started with the task of lowering
the internal temperature using a controller, but it was
not successful. We then changed our way of thinking
and started another task of shutting off the mainburner, which went well. In the future, we will take up
the challenge of switching to clean energy and work
toward achieving zero plant CO2 emissions by 2050.

Main burner
Pilot burner

TOPIC

Creating a Climate Change Response Leaflet for Employees

Toyota Material Handling Manufacturing Sweden AB (TMHMS), a subsidiary manufacturing
materials handling equipment in Sweden, has created a leaflet for employees about reducing
energy use in the workplace. The aim is to communicate to employees easy and simple climatechange measures, such as turning off lights and other equipment, and lay the groundwork for allcompany efforts to reduce energy consumption.

Through the initiative, we clearly identified how muchenergy is lost in which processes and cooperated
with the relevant departments for effective
countermeasures. We will utilize the knowledge
gained through this experience and continue toreduce CO2 emissions further to achieve carbon
neutrality at the plant.

39

Environmental Initiatives

Top Message

Value Creation

Initiatives for Growth

Promotion of ESG
Initiatives

Corporate andFinancial Information

Environmental Initiatives

Establishing a Recycling-Based Society
Case Example: Promoting the Introduction of Renewable Energy in the
Toyota Industries Group
Toyota Industries has been introducing renewable energy
Group-wide, while giving consideration to the characteristicsof the countries and regions where our bases are located.
For example, Vanderlande Industries Holding B.V., asubsidiary engaging in the logistic solutions business in the
Netherlands, signed The Climate Pledge in February 2021
and has been promoting various decarbonization strategies.
The pledge aims to counter climate change and reach net
zero CO2 emissions by 2040, 10 years ahead of the 2050
target year of the Paris Agreement.
In fiscal 2023, Vanderlande installed about 3,400 solar
panels on the roof of the warehouse of its head office.
These panels are expected to generate about 1.2 MWh ofelectricity annually. Together with the panels already installed,

the annual power generation of the entire system will beapproximately 2.2 MWh, accounting for about 30% of thehead office’s annual electricity consumption.

Erik-Jan Dik

Jan-Hein De Jong

As of March 31, 2023

As of March 31, 2023

Executive Manager
Real Estate

Project Leader
Facilities

This initiative shows Vanderlande’s commitment toemphasizing sustainability and staying ahead of thetimes. In the future, in addition to the energy-saving
activities conducted to date, we plan to proactively
undertake various initiatives to contribute to a
decarbonized society, such as introducing renewableenergy through the installation of solar panels on theunused rooftop of our buildings.
Rooftop solar panels installed by VanderlandeSupporting the TCFD Recommendations and Disclosing Information Basedon the Recommendations
In December 2019, Toyota Industries declared support
for the TCFD* and its recommendations. Recognizing thatclimate change-related risks and opportunities represent an
important management issue, we have been undertaking
activities as one of our CSR material issues.
In November 2021, we conducted scenario analysis
and disclosed information on “governance,” “strategy,” “riskmanagement” and “metrics and targets,” as recommended
by the TCFD.

Please visit Toyota Industries’ website for details
of information disclosed in accordance with the TCFD
recommendations.
*A task force established by the Financial Stability Board (FSB) in 2015 at the requestof the G20 to explore how companies should disclose climate-related informationand how financial institutions should respond to climate change.

Link to details

To establish a recycling-based society, we have been striving to reduce and recycle waste and minimize the usageof and environmental impact on water resources.

Water Resources
Our Approach

Water is the basis of all life on the earth and is an irreplaceable and valuable resource. Every year, however, we havebeen witnessing the increasingly severe impacts of droughts, floods and other natural disasters resulting from climatechange as well as shortages in drinking water and agricultural water caused by the growth in the world’s population.
Many of the processes of Toyota Industries use water for washing and painting products, and we regard the watersupply crunch caused by climate change and population growth as a significant risk to our business activities.
Accordingly, we have set a goal of minimizing the environmental impact on water resources and have beenmonitoring water input and output in each country and region and promoting the recycling of water and reduction ofwater withdrawal.

Case Example: R educing the Environmental Impact of Treated Water
Toward achieving the goal of minimizing the environmental
impact on water resources, Toyota Industries has been
making related efforts in its production activities, such asdischarging clean water externally after appropriately treating
wastewater from production processes.
At the Nagakusa Plant, a vehicle assembly base in
Aichi Prefecture, the chemical oxygen demand (COD)
concentration, which is an indicator of water pollution, hasremained at a legally acceptable level. As a focused effort
in fiscal 2023, the plant launched an initiative to reduce its
environmental impact by lowering the COD concentrationeven further.
The plant conducted a survey on water quality in eachwastewater treatment process and found that the biologicaltreatment process using microorganisms to reduce COD was
not working effectively. Another survey showed the cause
was sponges which are carriers of microorganisms. These
sponges, which should disperse evenly in wastewater, were
not mixing well with the wastewater, some floating on thesurface and preventing effective treatment.
Before improvement

TOPIC

Implementing an Eco-Commuting Promotion Activity

Yantai Shougang TD Automotive Compressor Co., Ltd. (YST), a subsidiary manufacturing car air-conditioning
compressors in China, held an activity called “Eco-Commuting—Why don’t you join us?” for its employees. It
encouraged participants to commute on foot, bicycles or public transport, depending on the commuting distance,
instead of using cars. About 73% of employees
participated in the activity in fiscal 2022, and thisincreased to 89% in fiscal 2023.
Through this activity, employees reaffirmed
the need to engage in environmental activities
on their own, which has resulted in increased
environmental awareness.

40

Toyota Industries Report 2023

CSR Material Issue

After improvement
Wastewater
Carrier

In response, the plant implemented a countermeasure toplace the sponges in a water-filled tank before putting theminto the treatment tank. This made the sponges submerge
and disperse in wastewater and allowed them to treat it very
efficiently.
Through the improvement, the plant successfully reduced
the COD concentration of its discharged wastewater by
about 33%.
We will constantly work to reduce the environmental
impact of our production activities.

Koichiro Morimoto

Power Section No. 3,
Plant Engineering Dept.
As of March 31, 2023

The initiative was carried out as part of our QC circle
activities, and joint efforts of all circle members led
to the reductions of the COD concentration of thetreated wastewater discharged from the Nagakusa
Plant as well as treatment costs. We will continue towork to further reduce our environmental impact andtreatment costs.

41

Environmental Initiatives

Top Message

Value Creation

Initiatives for Growth

Promotion of ESG
Initiatives

Corporate andFinancial Information

Environmental Initiatives

Waste

Case Example: R ecycling Waste Plastics from Production Processes

Our Approach

CSR Material Issue

Mass consumption, if continued on the back of the expanding world population and economic growth, will eventuallydeplete natural resources. Toyota Industries believes it is essential to promote 3R (reduce, reuse and recycle) design for
effective resource utilization and the recycling of waste as resources.
We set a goal of minimizing the use of resources in our Environmental Vision 2050. Accordingly, we have been
making various efforts, including extending the life of components as well as reducing their size and weight in thearea of product development. In production activities, implementing measures to reduce resource consumption
at the source, ensuring the maximum resource recycling within a plant and reducing waste by using leading-edge
technologies are the three pillars of our activities.

Toyota Industries has been promoting initiatives to recycle
waste under the theme of “Waste when mixed, resources
when sorted.”
The Kyowa Plant, an on-board battery production
base in Aichi Prefecture, discharges waste consisting ofvarious types of plastics, such as plastic chips and residuesof materials used in products. We promote the recyclingof waste by sorting it into four groups of plastics, namely
polypropylene (PP), polyphenylene ether (PPE), acrylonitrile
butadiene styrene (ABS) and others, and have a recycling
operator recover the first three for repelleting.

TOPIC

Case Example: Reducing the Use of Masking Materials by Improving
Two-Color Painting Process
The Nagakusa Plant, a vehicle assembly base in Aichi
Prefecture, has been working to reduce its use of resources.
At the plant, painting a two-color body of the RAV4 isdone in two steps. The conventional method applied a firstcolor to the lower part of the vehicle, and after masking thepainted part, painted the roof with a second color. In thisorder, large quantities of masking materials were needed tocover the lower part. The plant launched an improvement
activity, based on reducing the use of masking materials by
first painting and masking the roof, which is smaller than thelower part.
The plant verified the change in the order of paintapplication to identify any issue and found that the new order
will change the orientation of the edge, which represents
a level gap between the two painted portions, and cause
the paint to peel off as parts interfere with each other when
Before improvement
Masked area

24 m2

After improvement
Masked area

42

Toyota Industries Report 2023

4 m2

opening and closing the doors. The appearance of the edge
itself will also deteriorate. The Design, Quality Assurance,
Manufacturing and other departments worked together fora design change and resolved these issues by moving theedge further inward. As a result, the use of masking materials
was reduced by 74%.
We will continue to make joint efforts, encompassing
design and other upstream departments as well as
manufacturing sites, to reduce our consumption of materials.

(Top) Yusuke Nakagami
Body 1G, Designing Office
No. 1, Vehicle Engineering
Dept., Vehicle Div.
(Bottom) Takashi Ichikawa
Quality staff, Paint & Plastic
Sec., Manufacturing Dept.,
Vehicle Div.
As of March 31, 2023

In this project, the entire plant worked as a team to
respond to a “we wish we could” request from the
Manufacturing Department.
The process of applying two colors of paint, thedemand for which is growing recently, generates
a considerable amount of waste. In response,
the Manufacturing Department teamed up with
the Design Department to overcome the issue bylooking at it from a different angle and succeeded
in increasing operational efficiency and reducing
the amount of waste. We will continue to promote
the reduction of waste through teamwork acrossdepartmental borders.

In fiscal 2023, we promoted recycling even further byexamining and sorting the waste plastics included in the“others” group. After discussing the matter with a recycling
operator, we found that we can sort out otherwise discarded
PP/polyethylene (PE) mix from the group and started
recycling it.
Going forward, we will work to promote the recycling ofwaste further.

Promoting the Recycling of Household Waste

During the Environmental Month held in June 2022, Toyota Material Handling Mercosur Indústriae Comércio de Equipamentos Ltda (TMHM), a subsidiary manufacturing materials handlingequipment in Brazil, conducted “RECICLE,” a project to promote the recycling of waste from
employees’ homes. Recycling has become an issue in the community in which TMHM is locatedbecause it does not have a public recycling system. With the cooperation of a waste treatment
operator, TMHM set up waste bins within its plant to collect household waste from employees,
which is then collected by the operator for recycling. As a result, about 32 kg of household waste
was recycled.
Through such activities, TMHM will work to increase the recycling awareness of employees
and their families and contribute to the resolution of issues in the community.

Reducing Environmental Risk andEstablishing a Society in Harmony with Nature
We endeavor to conserve biodiversity and use natural resources in a sustainable manner through our businessactivities and seek to achieve harmony between these activities and biodiversity. At the same time, we aim tominimize environmental risk by working not to generate substances of concern because of our business activities.

Conservation of Biodiversity: Our Approach

CSR Material Issue

Deforestation is now proceeding in various parts of the world, causing the fragmentation of the habitats of livingorganisms. In order for humankind to live in harmony with nature, it is essential to protect nature in each region.
In our Environmental Vision 2050, we set a goal of generating a positive impact on biodiversity and have been
conducting various business activities while continuously paying attention to their influence on the natural environment.
We have also formulated the biodiversity policy and have been promoting initiatives accordingly. The policy clearlystipulates that we seek to reduce the impact of our business activities on biodiversity and work with local communities
for the conservation of biodiversity.

43

Environmental Initiatives

Top Message

Value Creation

Initiatives for Growth

Promotion of ESG
Initiatives

Corporate andFinancial Information

Environmental Initiatives

Toyota Industries Group’s Activities to Conserve Biodiversity

Creation of “Birdpia,” a Paradise for Birds

To contribute to the conservation of biodiversity in thecommunity, the Toyota Industries Group promotes activities
globally, leveraging the unique characteristics of each plant.

We created “birdpia,” a paradise for birds, within the premises of the Higashichita Plant to attract endangered bird species.

Contributing to Biodiversity within the Plant Premisesn Setting up an Insect Hotel within the Plant
Premises

Toyota Material Handling
Manufacturing Sweden
AB (TMHMS), a subsidiary
manufacturing materials
handling equipment in Sweden,
has created a biodiversity areaon the plant premises and set
up an insect hotel, a man-madehabitat, within the area for
insects and microorganisms.
The aim is to create anenvironment friendly to insects and microorganisms, attract
birds and small animals that feed on them and ultimately
establish a balanced ecosystem.

n Contributing to the Local Ecosystem byDistributing Seeds of Indigenous Plants
Raymond Corporation, a subsidiary manufacturing materials
handling equipment in North America, distributed seeds ofindigenous plants along with an awareness-raising letterto all employees. Through the letter describing a variety of
benefits brought about by plants, Raymond communicatedto its employees that our lives are supported by diverse
ecosystems.

n Holding a Contest on Drawings ofan Endemic Bird

P.T. TD Automotive Compressor Indonesia (TACI), a
production subsidiary in Indonesia, held a drawing contest
for children of its employees on the theme of Rothchild’s
mynah, an endangered and endemic species in Indonesia.
Holding a family-engaging event creates an opportunity for
employees and their families to recognize the importance of
biodiversity.

TOPIC

Certified as an “Excellent Biodiversity
Company” by the Aichi Prefectural
Government

In November 2022, Toyota Industries received“Excellent” certification in the Aichi Biodiversity
Company Certification Program.
The program was established by the Aichi
prefectural government in 2022 to certify companies
engaging in activities that contribute to biodiversity,in particular, activities that reach throughout thecommunity and ensure continuity. Going ahead, we
will continue to undertake activities together with thelocal community to contribute to the conservation of
biodiversity.

Currently, many living organisms are in danger ofdisappearing, and the ecological balance is on the vergeof collapsing. In April 2022, Toyota Industries joined the30by30 Alliance for Biodiversity, which was established by
the Ministry of the Environment prior to the United Nations
Biodiversity Conference (COP15). Toward achieving the goalof generating a positive impact on biodiversity as specified in
our Environmental Vision 2050, we have been leveraging theunique characteristics of our plants and conducting a rangeof activities to contribute to the natural environment.
The Higashichita Plant is located adjacent to Kinuura
Bay, which used to be a nestling place for many little terns.
In recent years, the bird’s population has declined as suitablebreeding places disappear. In response, Toyota Group
companies with plants in the bay area have been working
together to conserve little terns and other endangered bird
species, under the concept of “Restoring Kinuura Bay to its

original state to provide a safe place for birds to build nests.”
A survey by experts revealed that the idle land ownedby the Higashichita Plant is a wetland that can also attract
birds other than little terns, and Toyota Industries has beenpromoting activities for conserving the bird species.

Expanding a Habitat for Birds and Using It as a Venue for Education
To become a plant operating in harmony with nature, thebirdpia in the Higashichita Plant seeks to secure a stableliving environment for birds and achieve habitat separation
between humans and birds. It is used to expand the habitat
for birds and serve as a venue to provide environmental
education for employees and their families to learn aboutbiodiversity. The birdpia is divided into four zones, namely

TOPIC

grassland, woodland, wetland and gravel zones, to provide adiverse environment. An observation shed and walking paths
are also set up to allow people to observe birds and otherliving things without endangering their habitats.
We have confirmed that the birdpia has been visited byabout 50 species of birds and will continue to make efforts tocontribute to expanding the ecosystem in Kinuura Bay.

Cooperation with and Evaluation byExternal Organizations

We held a workshop with experts and students of
the Chita Peninsula Ecological Network Council andexamined ways to utilize the woodland zone. We also
work with student committee members of the Project
Linking Life with One Another* and regularly conduct
surveys to monitor living organisms.
In recognition of our activities, Toyota Industries
has received a “Good Partnership Project” award
under the Cars and Society Partnership Grand Prize
program run by the Automobile Business Associationof Japan.
*A project jointly carried out by Aichi Prefecture, NPOs, companies andstudents with the aim of forming ecological networks by leveraging
corporate green zones of the Chita Peninsula as well as developing youngenvironmental leaders

Yuka Fukagawa

Biodiversity Conservation Group,
Environmental Conservation
Office, Environmental
Management Dept.

Toyota Industries’ biodiversity
conservation activities are alsoavailable on our Instagram
account, “Tsu Na Gu (‘Link’).”As of March 31, 2023

We have conducted activities with employees of theHigashichita Plant to familiarize them with the birdpia,
such as assembling and painting an observation
shed and coloring and setting up little tern decoys.
We will continue to engage in activities to enhance
the birdpia as a site where people and nature canco-exist.

Links to Virtual Tours
Our Biotope at the East of Obu Station and animal
path within the Higashiura Plant can be viewed on
Toyota Industries’ website.

Link to the Biotope
at the East of
Obu Station(in Japanese)

Link to theanimal path(in Japanese)

Aichi Biodiversity
Company Certification
Program logo

44

Toyota Industries Report 2023

45

Relationship with Our Stakeholders

Top Message

Value Creation

Promotion of ESG
Initiatives

Initiatives for Growth

Corporate andFinancial Information

Relationship with Our
Stakeholders

Relationship with Our Customers
Regarding quality as one of its material issues, Toyota Industries practices monozukuri (manufacturing) that quickly
responds to the diverse, ever-changing needs of customers.

Basic Perspective
Quality
VisionEach and every member of the Toyota Industries Group complies with laws and regulations while thinking
and acting from the perspective of customers at their workplaces and positions to supply appealing
products/services that exceed the expectations of customers around the world, with safe and reliable quality.

If a defect is found in a product after its launch, the Quality
Assurance Department of the responsible business division
takes the lead in making a swift response to eliminate theconcerns of customers quickly and implementing measures
to ensure the non-recurrence of the same defect. In
particular, a defect causing considerable inconvenience tocustomers is recorded as a critical quality issue and reported
to the president. At the same time, we have in place asystem to follow through on customer response as well as
measures to prevent recurrence. Accordingly, we examine
and identify the cause by going back to its development
process. We implement countermeasures both from theprocess and technological aspects and revise our new
product development process as necessary. Through thesemeasures, we strive to thoroughly avoid the recurrence of thedefect in subsequent models. Additionally, we make efforts toprevent the occurrence of defects in all products we develop
and manufacture in the future by taking measures throughout
Toyota Industries. Regarding the regulatory violation related
to certification for engines we manufacture for lift trucks for
the Japanese market, we are making concerted efforts to
not only implement the above measures but also establish astronger check system.

nt

me
ge
na y
Ma ualitqTypes of Quality Sought by Toyota Industries
Carrying on the spirit of founder Sakichi Toyoda that “A productshould never be sold unless it has been carefully manufactured
and fully tested in the commercial trial, with completely
Quality levels thatsatisfactory results,” Toyota Industries strongly believes that
customers truly expect
Brand strength
Corporate image
quality is the lifeblood of a company. Quality must also be built
on compliance with laws and regulations, standards, guidelines
Safety
Salesand specifications that have been agreed upon with customers.
Eco-friendlinessService
Under this belief, we have formulated our Quality Vision asDurability
Logistics
Product
qualityEase of use
our philosophy in ensuring quality that forms the basis of ouroperations.
Workmanship
Designquality
Toyota Industries strives to maintain and improve the total
quality of our corporate activities, which encompasses not only
Compliance with laws and regulations, standards, guidelines“product quality” but also “marketing quality” and “management
and specifications that have been agreed upon with customers
quality.” “Product quality” is embodied in the safety, ecoManufacturing capabilities
friendliness, durability, ease of use and workmanship of our
products, while “marketing quality” entails excellent sales and service in addition to these attributes and “management
quality” further enhances our overall corporate image and brand strength in terms of all of these attributes.

Preventing Occurrence and Recurrence of Defects

g
tin
rke y
Ma ualitq

Providing Support to Suppliersing
tur
fac iesnu bilit
Ma apac

Since improving the quality of our products requires
concerted efforts with our suppliers in and outside Japan, weare strengthening joint quality assurance activities with major
suppliers.

Quality Guidelines and Quality Assurance Structure
To achieve the goal of the Quality Vision, we issue
the Quality Guidelines, which identify priority qualityrelated issues to be implemented in each fiscal year,
to all production bases in and outside Japan andengage in quality assurance activities accordingly.
The implementation status of these guidelines isreviewed by top management at the Quality Functional
Meeting chaired by an executive in charge of
quality*1 for identifying additional issues and devisingcountermeasures. Issues raised are followed up at
meetings of the Company-wide Council of Heads of
Quality Assurance Departments chaired by the head of
the Quality Control Department*1.
*1: As of March 31, 2023

Quality Assurance Activities Based on the Quality Guidelines
Checking and identifying issues of Company-wide
quality status and progress in implementing the guidelines

Implementing Companywide guidelines

President

Quality Vision
Quality Roadmap

Quality Functional Meeting
Executive in charge of quality

A

Heads of business divisions

Company-wide Council of Heads of
Quality Assurance Departments

C

P

PDCA*2cycle

Quality Guidelines

D

Quality assurance activities at all bases in and outside Japan
Quality Guideline 1
Quality assurance inproduct development

Quality Guideline 2
Quality assurance inmass production

Quality Guideline 3
Quality assurance atbusiness partners

Quality Guideline 4
Human resources/
workplace development*2: PDCA (Plan, Do, Check, Act)

Toyota Industries undertakes product development that meets customer expectations by capturing market needs
and understanding how our products are actually used by customers.
At Toyota Industries, the development of a new product entails defining specific goals to incorporate quality inevery stage from product planning and design to production preparation, production, sales and after-sales services.
We perform a design review (DR), which allows a product to proceed to the next stage only when the head of a
responsible business division examines and approves whether the product has reached the target quality level.
Additionally, we are proactive in obtaining ISO 9001 certification, an international standard for quality management
systems, and IATF 16949, an international standard for automotive quality management systems, throughout the Group.

> ISO 9001 and IATF 16949 certification: Acquired by 33 out of the 38 production subsidiaries (as of July 2022)
n Risk Assessment for Product Safety

In order to provide products that are safe for customers to use, each business division conducts risk assessment
during a DR to identify all risks.
We are also providing Company-wide specialized risk assessment education to promote the development of
human resources who can assess two factors integral to risk assessment, namely, the likelihood of an occurrence of ahazard and the severity of damage caused by it.
CSR Material Issue

46

Toyota Industries Report 2023

> Rate of performing risk assessment on applicable products (non-consolidated): 100%n Quality Audit

In each annual quality audit, we conduct genchi genbutsu(go and see for yourself) inspections to confirm eachbusiness partner’s quality control status, provide supportand quality education for items that should be reinforced andcultivate a deeper understanding of kaizen (improvement). In
fiscal 2023, we continued to undertake audit activities under
the COVID-19 pandemic while attaching greater emphasison genchi genbutsu inspections and using mobile cameras
as necessary.

n Nurturing and Certifying Internal Auditors at
Suppliers

To foster voluntary quality improvement efforts of suppliers,
we are maintaining and promoting activities for suppliers
satisfying our criteria to nurture and certify their own internal
auditors and autonomously improve their quality assurance
systems. These activities enable our suppliers to attain thelevel of quality assurance required and establish a culture tofoster quality assurance on their own.

Promoting Human Resources and Workplace Development
Toyota Industries provides systematic quality education to
all employees to help them acquire quality assurance skills
needed in actual operations. We have been developing
human resources who think, learn and act on their own.

n QC Circle Activities

We encourage all employees to participate in quality control(QC) circle activities. We have garnered many awards,
as we presented the results of our activities at QC circle
conventions across Japan. For example, in fiscal 2023 we
received an encouragement award under the QC Circle
Kaoru Ishikawa Award program for two consecutive years(for the ninth time in total). The award is given to QC circles
for their distinctive activities and contribution to widespread,more active and better QC circle activities.
Our production bases outside Japan are also proactive inpromoting QC circle activities. We assist them in undertaking
independent activities by nurturing and certifying global QC
circle trainers at each base. Even though the COVID-19
pandemic affected QC circle activities of all bases outside
Japan since fiscal 2021, these trainers have devised
creative solutions to promote and maintain their initiatives.
As for the Global QC Circle Convention held in Japan as avenue for presenting activity
results, we have been holding
a video session since fiscal
2021. Among the Regional QC
Circle Conventions hosted in
respective regions, the one inAwards ceremony at the Regional QC
Europe was held for the first time Circle Convention in Europe (Sweden)in three years in fiscal 2023 to share the accomplishments
made by respective bases.
All employees are striving for kaizen in their day-to-day
operations through creative ideas. With regard to such ideas,
we received three awards in fiscal 2023 in the Creativity
category in the Commendation for Science and Technology
by Japan’s Minister of Education, Culture, Sports, Scienceand Technology. These awards are given to those whohave used ingenuity in an excellent way and contributed totechnology improvement.

n Nurturing Human Resources Who Can Take a
Scientific Approach

As part of our basic education on quality management,
we teach the basics of statistical quality control (SQC)
and machine learning. In order to increase the practicalapplication of machine learning, we have been nurturing corehuman resources through problem solving in the workplace.
We have held the TICO SQC Convention for 39 years
to share best practices of each business division and honecollective skills. In fiscal 2023 as well, this session was held
online in response to COVID-19.

CSR Material Issue

TICO SQC Convention (online streaming)> Rate of eligible employees receiving training to promote
quality education (non-consolidated): 92.3%

47

Relationship with Our Stakeholders

Top Message

Value Creation

Initiatives for Growth

Promotion of ESG
Initiatives

Corporate andFinancial Information

Relationship with Our
Stakeholders

Relationship with Our Business Partners
Toyota Industries encourages open procurement and seeks co-existence and co-prosperity with our business
partners (suppliers) based on mutual trust. We also facilitate environmentally preferable purchasing, humanresources development, fair trade, disaster prevention activities assuming earthquakes and various other disasters
and more efficient purchasing.

Basic Perspective
Procurement
Policies• Fair and equitable business transactions based on an open door policy• Co-existence and co-prosperity based on mutual trust• Reducing environmental impact through environmentally preferable purchasing• Localization of business for good corporate citizenship• Legal compliance

We provide fair and equitable opportunities to all potential suppliers. We comprehensively evaluate our suppliers basedon factors such as quality, price, adherence to delivery times, safety, business stability and technology development
capabilities. We also assess whether they fulfill their social responsibilities, including legal compliance, respect forhuman rights and environmental protection activities, as we strive for fair and equitable business transactions.

Co-Existence and Co-Prosperity Based on Mutual Trust
We strive to realize co-existence and co-prosperity with our suppliers based on mutual trust. Every year, we holdprocurement policy meetings and workshops for managers of major suppliers to facilitate mutual understanding andcooperation. In addition, as full-year efforts for major suppliers, we implement quality control through quality audits andthe development of internal auditors and provide programs such as technical skills training, guidance directed towardkaizen at their production sites and safety and health education.
As for changes in the business environment, including rises in various costs, we continually discuss with suppliersto thoroughly understand the difficulties they are facing and seek to achieve sustainable development for both parties.

Environmentally Preferable
Purchasing Guidelines

Toyota Industries

Affiliated companies

Toyota Industries Report 2023

a periodic check on commodity
items of concern, such as conflictminerals, we strive to maintain healthytransactions and reinforce a related
structure throughout the supply chain.
Link to theguidelines

Sustainability Guidelines
for Suppliers

CSR Material Issue> Rate of performing a sustainability check on applicablesuppliers (non-consolidated): 100%

In 2016, we set up a hotline for our suppliers to reportand inquire about possible compliance violations in Toyota
Industries’ procurement activities to ensure early detection
and the prevention of problems.

Link to thedeclaration(in Japanese)n Toward Achieving Carbon Neutrality in Our
Supply Chain
Toyota Industries holds sessions to explain carbon neutrality
to its major suppliers. In fiscal 2023, we described our
initiatives for reducing CO2 emissions and asked for theircooperation in managing their emissions. Jointly with
suppliers, we will continue to step up our efforts towardachieving carbon neutrality throughout our supply chain.

800
600

Business Continuity Management (BCM)

400200(FY) 19

20

21

22

23

Safety and Health Activities for Suppliers

48

We publicly announced our Declaration of Partnership
Building in September 2021 and have been striving to form agood relationship with our suppliers. The declaration clarifies
that we make corporate and focused efforts to realize coexistence and co-prosperity with our entire supply chain,start new forms of collaboration regardless of company sizeand corporate group affiliations, and observe the preferred
trade practices between a parent business operator and its
subcontractors (included in the business promotion criteriaof the Act on the Promotion of Subcontracting Small andMedium-sized Enterprises).

n Hotline for Suppliers

Participants of Subcontracting LawRelated Seminars

0

We visit the sites of our major suppliers in person to conduct
a genchi genbutsu safety and health inspection*3. We also
hold sessions to explain our Occupational Safety and Health
Policies. Based on the analysis of accidents that occurred in

To work together throughout the supply chain to realize
a sustainable society, we distribute the Sustainability
Guidelines for Suppliers, which describe our requirements
for suppliers related to safety, human rights, labor practices,
the environment, compliance and other topics, to suppliers
while thoroughly informing them about the content. In April
2023, we made revisions to the guidelines, such as adding
provisions on cybersecurity. We inspect their compliance withthe guidelines by performing an annual check on existing
suppliers and requesting new suppliers to perform a selfinspection using a checklist and following up on their efforts.
Through these checks, we confirmed that all suppliers
comply with the guidelines in fiscal 2023. Moreover, throughn Declaration of Partnership Building

Human Resources Development to Enhance Procurement Knowledge(Persons)
1,000*3: Canceled due to COVID-19 from fiscal 2021 to fiscal 2023

Reinforcing Relationships with Suppliers

Reducing Environmental Impact through Environmentally
Preferable Purchasing

We proactively provide personnel in charge of procurement at Toyota Industries andaffiliated companies with education to enhance procurement knowledge. In fiscal 2023,
we provided education mainly on Japan’s Subcontracting Law as well as topics related
to sustainability such as human rights and the environment.
We also utilize e-learning to thoroughly inform personnel in charge of procurement
about our response to the Japanese government’s activities to prevent the unjust useof a superior bargaining position as stipulated in antitrust laws as well as initiatives andguidelines aimed at ensuring fair subcontracts.

Using past accident cases as a reference, we periodicallyshare various information, including matters that should beobserved to prevent similar accidents, with subcontractorsof outsourced work. We also request their cooperation to
perform risk assessment in the construction work planningstage to identify associated risks. In addition, we encouragethem to always discuss in advance a safe work method withthe departments of Toyota Industries planning a construction
project.

Sustainability Guidelines for Suppliers

Fair and Equitable Business Transactions Based on an Open Door Policy

We procure parts, raw materials and equipment while using environmental friendliness as
one important assessment criterion when selecting suppliers. The seventh edition of ourEnvironmentally Preferable Purchasing Guidelines contains our Environmental Vision 2050,
including the establishment of a carbon neutral society. Accordingly, we have been strengthening
environmental management so as to promote environmental
protection activities in our entire supply chain. Efforts include
Link to theguidelines
giving consideration to the entire product lifecycle as early as thedevelopment stage.

explosions), industrial accidents and disorders on thepremises of Toyota Industries, we have established the
Safety and Health Council with subcontractors locatedon our premises. When an accident or industrial accident
does occur, we ask them to report it to us and investigate
the cause in accordance with the rules and procedures
stipulated by Toyota Industries. Also, we jointly create acomfortable working environment by sharing informationon accidents and disorder prevention activities of Toyota
Industries.

the previous fiscal year and information on legal revisions, we
promote safety and health activities for the next fiscal year forthe prevention of similar accidents through these sessions.
With a view to seeking zero accidents (fires andIn further promoting BCM, we are making concerted efforts
with suppliers to reduce associated risks by implementing
specific measures. In fiscal 2022, to deal with frequent
natural disasters in recent years, we rebuilt a system toidentify disaster-induced damage to suppliers. Previously,
we had conducted an impact survey on suppliers byconcurrently using multiple systems for various customers. In
place of these systems, we adopted a new, unified system,

which has enabled us to perform the impact survey in a more
efficient and timely manner and contribute to their BCM.
Moreover, in order to recover quickly and maintainproduction, we continued to reinforce our earthquake andflood control measures at each base while at the same timereevaluating an appropriate level of inventories and examining
ways to decentralize suppliers and production bases.

49

Relationship with Our Stakeholders

Top Message

Value Creation

Initiatives for Growth

Promotion of ESG
Initiatives

Corporate andFinancial Information

Relationship with Our
Stakeholders

Relationship with Our Shareholders and Investors

Relationship with Our Associates

We aim to facilitate an understanding of the Toyota Industries Group and obtain an appropriate company valuation instock markets through information disclosure based on fair disclosure rules as well as proactive dialogue withshareholders and investors.

We undertake initiatives to enable associates to work safely and with peace of mind and to allow diverse humanresources to exercise their potential and play active roles.

n Human Resources Management and Labor Management
Basic Perspective and Implementation Structure
Toyota Industries continually carries out information disclosure based on fair disclosure rules for shareholders andinvestors. In this way, we raise management transparency and increase an understanding of the Toyota Industries
Group so that we obtain an appropriate company valuation in stock markets.
Our investor relations (IR) activities are supervised by an executive in charge of investor relations. We also strive toengage in proactive dialogue with shareholders and investors by establishing a dedicated department.

Basic Concept
Toyota Industries undertakes a range of initiatives based on our basic perspective to develop and leverage thecapabilities of associates and the organization to the fullest by promoting the creation of a highly motivated team.

Increasing Work Motivation
Communication with Shareholders and Investors
As in the previous fiscal year, we implemented various safety
protocols for our 144th General Shareholders’ Meeting heldon June 10, 2022, including reducing the number of available
seats, to prevent the spread of COVID-19 and ensure thesafety of our shareholders.
With regard to the exercise of voting rights, we
encouraged shareholders to use the Internet and other online
means. All resolutions were passed at the meeting.

144th General Shareholders’ Meeting

For institutional investors and analysts, we held financial
results briefings by management, while the Investor Relations
Office conducted individual interviews, mainly via telephone
and the Internet. Through these opportunities, we engaged
in dialogue on a range of topics, including the impact of
global inflation and supply chain disruptions on our businessand business results as well as subsequent future outlook;market conditions in each of the Lift Truck Business andLogistics Solutions Business; production and sales status in
our automobile-related businesses; direction of business overthe medium to long term; and our approach to and initiatives

for the environment, social and governance (ESG) issues.
In December 2022, we hosted an information session
at our Toyota L&F Customer Center Tokyo to describe theMaterials Handling Equipment Business including logistics
solutions, a topic of keen interest among institutional
investors. The hybrid session, held in person and via theInternet, was attended by more than 100 securities analysts,
institutional investors, journalists and other parties. We helda dialogue with them about our potential and strategies toachieve business growth over the medium to long term andallowed them to see our systems and equipment.
For individual investors, we held web-based company
information sessions to explain Toyota Industries’ businesses,
characteristics and strengths and answered many questions.
Through such communications with shareholders andinvestors, we successfully promoted a deeper understandingof Toyota Industries’ entire businesses. Opinions andrequests obtained through these communications are
fed back to executives and relevant business divisions asnecessary to reflect them in our future business activities.

Information session on
the Materials Handling Equipment Business

Returning Profits to Shareholders
Toyota Industries regards ensuring shareholder benefits as
one of the most important management policies. In returning
profits to shareholders, we emphasize stable cash dividends.
Accordingly, we strive to continue paying dividends at theconsolidated dividend payout ratio of roughly 30% and meetthe expectations of shareholders upon comprehensively
taking into consideration such factors as business results

50

Toyota Industries Report 2023

and demand for funds.
For fiscal 2023, Toyota Industries increased annual cash
dividends by ¥20.0 from the previous fiscal year and paid
annual cash dividends per share of ¥190.0 (interim cash
dividend per share of ¥90.0 and year-end cash dividend pershare of ¥100.0).

It is essential to create an open workplace so that individual
associates can fully demonstrate their abilities in their own
ways and find their work rewarding and meaningful.
At Toyota Industries, supervisors and more experienced
associates have been taking the lead in creating a workplaceculture that allows members to freely share opinions andsuggestions. They also work to establish a relationship sothat they can sincerely work to solve difficulties or troubles
faced by members. To this end, we are making Companywide efforts and holding labor-management discussions
throughout the year.

We also conduct an annual Company-wide morale
survey to listen to voices of associates. Survey topics covervarious aspects, including workplace culture, an individual’s
willingness to growand growth achieved
and supervisors’
management ofsubordinates. By doing
so, we clarify issues andrequired measures andmake efforts accordingly.
Interview between a supervisorand subordinate

Nurturing Human Resources and Promoting Active Roles
It is crucial to build a flexible and robust organization that
can adapt to future uncertainties and various changes.
Accordingly, we strive to nurture human resources who
can trigger changes in the surrounding environment andthemselves and back up associates tackling challenges.

n On-the-Job Training (OJT)

We engage in human resources
development in each workplace with
Setting role/theme
a focus on the OJT cycle consistingof three steps: setting a role andtheme for each associate, giving
Evaluation
Givingguidance and providing performance&
guidance
feedback
evaluation and feedback. Specifically,a supervisor and subordinate holddiscussions to determine an aspired role and theme at the
beginning of a fiscal year. After laying down the growth
expectation and target for the subordinate, the supervisor
gives guidance on a daily basis. At semiannual interviews,
the supervisor gives feedback to the subordinate on his or
her strengths and areas of improvement. The cycle leads tofurther growth and a more active role of each subordinate.
Going ahead, we will introduce a 360-degree feedback
system designed to encourage the growth of supervisors.
Through the system, we will provide an opportunity for themto reflect on their actions and facilitate behavioral change.
As additional efforts to support autonomous careerdevelopment, we will establish a system for associates
to submit their aspired growth and role to their respective
workplaces and enhance our internal job posting system thatallows them to apply for a desired job.

n Off-the Job Training (Off-JT)
We provide various training programs that are practicaland useful in the workplace, including induction training for
new associates, training for newly promoted associates
and seminars to gain specialized knowledge or capabilities.
These programs arealso made available toassociates of affiliatedcompanies in Japan.
We also engage
in the developmentof human resources
globally with a focus
on the following three
Training
pillars.
(1) Global leader training(2) People-to-people exchange (temporary overseas
assignment, overseas training and Intra-Company
Transferee (ICT) system to accept associates of Group
companies outside Japan)(3) Training to be held at Group companies outside Japanto cultivate a sense of value shared across the Toyota
Industries Groupn Support for Personal Development

We provide opportunities and venues for personal
development and voluntary study to increase associates’
willingness to expand their knowledge and perspective
and to learn independently. We also provide financial aid tosupport their personal development.

51

Relationship with Our Stakeholders

Top Message

Value Creation

Promotion of ESG
Initiatives

Initiatives for Growth

Corporate andFinancial Information

Relationship with Our
Stakeholdersn Work Styles without Time or Place Constraints
To enable associates to work productively, we are working tocreate systems and an environment for them to work flexibly
without time or place constraints. To offer more diverse work
style options, we have enhanced our telecommuting systemn Supporting Work-Life Balancein addition to establishing a flex time system without corehour requirements, satellite offices and a discretionary work
system.

Supporting Active Roles of Diverse Human Resources
For generating new value by flexibly responding to thechanging business environment and diversifying customer
needs, we aim to create an organization that allows humanresources that are diverse and proactive to exercise theirabilities to the fullest and make accomplishments throughco-creation.
We are promoting initiatives to realize a corporate
culture in which associates accept and respect each other’s
differences, including gender, age, nationality, race, religion,
sexual orientation, gender identity, disabilities, experience,
sense of value or any other invisible difference.

n Empowerment of Female Associates

We aspire to let individual associates take active roles
regardless of gender. Accordingly, we have been undertaking
a range of initiatives from various aspects, such as changing
mindsets, providing career support for female associates andpromoting flexible working practices.
Targets and Major Initiatives for Promoting Active Roles of Female
Associates CSR Material Issue
Target 1

Ratio of female managers: Double the ratio to 2.4% in fiscal 2025
and triple it to 3.6% in fiscal 2031 compared with fiscal 2015 when
the target was defined

Result1.7%, or 1.4 times the fiscal 2015 level (as of March 31, 2023)

Exampleefforts

Awareness-raising seminars for managers; training for careerdevelopment for female associates; formulating and implementing
individual development plans; role model exchange meetings;
pre-maternity leave seminars; installing delivery lockers in-house

Target 2

Ratio of female graduate recruits: 40% in office work positions and
10% in engineering positions

Result57% in office work positions and 8% in engineering positions(among new hires in April 2023)

Exampleefforts

Recruitment events for female students; participating in initiatives of
the Toyota Female Engineer Development Foundation

Target 3

Ratio of male associates taking parental leave: 30% in fiscal 2026

Result

32.5% (fiscal 2023)

Exampleefforts

Encouraging associates and their spouses to participate in
pre-maternity leave seminars; internally communicating our parental
support systems and example support for a work-life balance

In seeking to ensure that female associates engaging in
production operations fully work and take active roles until
an older age, we also hold a work style seminar for female
production associates and a seminar for supervisors on
nurturing female subordinates.
As a result of these efforts, Toyota Industries received
Japan’s “Eruboshi” certification and an “Excellent Company”

award under Aichi Prefecture’s “Female-Friendly Company”
certification program.

n Initiatives for Persons with Disabilities

We respect the idea of people with and without disabilities
working together and sharing life and work values. Under
this basic policy, we continue to employ persons withdisabilities every year. In order to ensure that they receive fair
opportunities for achieving growth and taking active roles
after joining Toyota Industries, we dispatch sign language
interpreters when they receive training, provide tools to
support communication and assign counseling staff.
CSR Material Issue> Ratio of associates with disabilities: 2.57% (nonconsolidated)

Ratio of Associates with Disabilities (NonConsolidated) and Legally Mandated Ratio
(%)
2.6
2.5
2.4
2.3
2.2
2.1
2.0
0
(FY) 19

Ratio of associates with disabilities

20

21
22
23
(As of June 1 of each fiscal year)n Creating an Age-Inclusive Workplace
We provide practical digital skills education for experienced
associates, who have broad work experience and perspectives,to learn the knowledge on digital technologies and know-how
to use them through themed practical work in the workplace.
They cultivate knowledge and skills through education andcontribute to the workplace by actively promoting the use ofdigital technologies after finishing their education.
In order to enable older associates to work and takeactive roles in production operations, we have been creating
better, less physically stressful production lines for them.
Efforts include setting up standards for the handling of heavy
objects and a work environment that makes it easier for
older associates to work, and improvement in processes in
production lines using digital technologies.

Toyota Industries Report 2023

We have been undertaking business outside Japan for many
years and now have 236 overseas bases, of which morethan 200 companies are led by a local president. In addition,some 50,000 associates are engaging in business activities
outside Japan, accounting for about 70% of all associates of
the Toyota Industries Group.

Establishing in-house daycare center; shorter work-hour
Enhancing systems system for childcare; leave system and loan system forto support a work- fertility treatment; return-to-work system to reinstate
life balanceassociates who have left work to provide child or familycare or to accompany their spouse for a job transfer, etc.
Distributing the Handbook for Balancing Work with
Facilitating an
Nursing Care; distributing the Handbook for Balancing
understanding ofWork with Family Care; seminars on balancing work
maintaining a workwith nursing care; providing newsletters on nursing
life balancecare, othersn Efforts for Mid-Career Recruitment

We have been reinforcing mid-career recruitment toincorporate external knowledge. In fiscal 2024, we plan toincrease the ratio of mid-career associates in office workand engineering positions to 30% of all main career track

associates (20% in fiscal 2023). Mid-career associates are
assigned to their desired business divisions or job categories
and after finishing induction training, take active roles in each
workplace.

n Safety and Health
Safety Vision

Based on the idea of building “a homelike atmosphere at work that is warm andfriendly” as stated in the Toyoda Precepts, we formulated the Safety Vision in 2013
after holding repeated discussions on the “basic stance on safety” and “optimalsafety we seek.” The vision has been instilled at all bases in the Toyota Industries
Group.

Each and every associate in the Toyota
Industries Group, guided by the spirit of
our corporate creed, aims to create a
corporate culture that places a top priority
on maintaining safety in all areas andfocuses on mutual courtesy and safety
as well as realizing workplaces where
associates work each day with a sense ofhappiness and pride.

n Structure for Promoting Safety and Health
Under our basic policy of placing a top priority on safety and health, we have been striving to eliminate accidents andoccupational disorders. As part of such efforts, we have established the necessary committees, including the Central
Safety and Health Committee and Plant Safety and Health Committees.

n Occupational Safety and Health Management System

In accordance with the concept of an Occupational Safety and Health Management System (OSHMS/ISO 45001), we
have established a required management structure in each plant (or business division) headed by a general safety andhealth manager (senior executive officer or another executive) and have been achieving improvements in safety andhealth activities on an ongoing basis from human, object and administrative standpoints based on risk assessment.
Improvement Flow of Safety and Health Activities
Management Council / CSR Committee
Continuous
improvement

Central Safety and Health Committee(Chaired by the responsible senior executive
officer, etc.) (Held twice a year)

Plant Safety and Health Committees(Chaired by the responsible senior executive
officer, etc.) (Held once a month)
Practical digital skills education for experienced associates

52

n Working with Colleagues from Different
Countries

Basic Perspective
Legally mandated ratio

Link to theaction plan(in Japanese)

Training program topractice career interviews

We have been carrying out activities so that associates
who are balancing work and family can work with higher
motivation and pursue career development. Such activities
mainly focus on enhancing systems to support a work-lifebalance and facilitating an understanding for maintaining awork-life balance.
As a result of these efforts, Toyota Industries received“Platinum Kurumin” certification and won a “Family-Friendly
Company” award.

Link toperformancedata (social)

Subcommittee on
Improvement of Working
Environment(Held twice/year)

Review by

A management
Inspection andWorkplace Safety and Health Committees(Held once a month)

C corrective measures

Occupational Safety
and Health Policies

P

Plans
Execution and

D operation

53

Relationship with Our Stakeholders

Top Message

Value Creation

Promotion of ESG
Initiatives

Initiatives for Growth

Corporate andFinancial Information

Relationship with Our
Stakeholders

Prevention of Accidents and Disorders through Safety and Health Education
Purpose

Major Initiatives

Acquire qualifications(cultivate personal skills)

Licenses; skills seminars; special education; repeatededucation for capability improvement

Raise safety and healthawareness

Education to improve ability to predict hazards; educationto actually experience hazards (safety dojo)

Prepare for roles
associated withpositions/grades

Induction training; training for third-year production
associates; training for newly promoted senior experts andchief experts; training for newly promoted experts; safety
manager education

Prepare for job
Education on emergency measures; education on equipment
categories and business lockout; education for equipment safety inspectors;
characteristics
hands-on safety education using virtual reality (VR)

Creating a Safe Workplace by Preventing Occurrence and Recurrence ofIndustrial Accidents
Frequency Rate of Lost Workday Injuries
risk perception(Non-Consolidated)
and risk-taking
attitude*4. We will 1.60
Manufacturing industry
keep carrying out 1.20
this initiative toprevent accidents 0.80 Manufacturers of transportation machinery and equipment
caused by human
0.40
factors.
Toyota Industries
Good
We will
0.00(FY) 19
20
21
22
23
continue toSource: Survey on Industrial Accidents, Japan’s Ministry
work toward theof Health, Labour and Welfare
developmentof safe workplaces and safety-oriented human resources
based on an approach to always shut down a machine whensomething is wrong and take fundamental measures toremove the root cause.
*4: R isk perception: An ability to recognize a risk as a risk
Risk-taking attitude: Tendency to intentionally accept a risk and act accordingly
even when one perceives the riskn Health
Basic Perspective

54

Toyota Industries Report 2023

Since fiscal 2022, we have been promoting the “KENKO
Challenge 8 (8 Challenges for a Healthier Lifestyle)” initiative
to promote the cultivation of appropriate lifestyle habits indaily lives by defining eight lifestyle
habits and giving each a score. In
fiscal 2023, we took two approaches
to instill the initiative amongassociates and increase their healthliteracy*5, the two pending issues
from fiscal 2022. One approachtargeted individuals, and we provided
health-related information to
Milestone Health Class

Objective

Individuals
Providing information on mental healthPrevention of Lifestyle Diseases
As a collaborative initiative of Toyota Industries, its workers’
union and health insurance association, we conduct periodic
age-based health education for all associates (every five
years, from the age of 30) and offer a Milestone Health Class
as part of this education. To provide motivation for better
health, we feed back to associates the results of an annual
health checkup along with advice to improve lifestyle habits.
In fiscal 2020, we started providing such information as
physical fitness propensity scores and countermeasures,
how physically fit for work, assessment of physical fitness
age and recommended exercises to increase motivation for
promoting physical fitness.

As part of mental health support activities, we have in placea system to offer early consultation through a health-related
hotline. Other activities include upgrading our self-care/line-care education to prevent new cases of mental healthproblems and operating a return-to-work support programfor persons on long-term leave for the prevention of relapses.
We have successfully achieved positive results through these
activities.
As for activities for early detection, we put particularemphasis on line care by associates’ immediate supervisors.
We have been encouraging them to use check sheets torecognize the sign of a problem with their subordinates earlyand confirm its implementation status through interviews andquestionnaire surveys. The results revealed that, coupledwith an effort to strengthen the collaboration between each
workplace and the departments responsible for healthpromotion, these activities have resulted in an increase in
Improving Mental Health Support Systems

As a task for the medium term, we are promoting health improvement of associates, mainly focusing on the preventionof lifestyle diseases and mental health support activities, to counter risks of health problems associated with aging andgreater stress. To enable associates to work and take active roles over the long term, we provide support toward thecultivation of an autonomous health-oriented culture in which associates care about their own health and take action
voluntarily and willingly.

implemented a new weight
reduction program that uses
a body composition analyzer(BCA), in addition to providing
the Milestone Health Class andhealth guidance to associates
whose body mass index (BMI)
is above 25.0. The program
Weight reduction program using a BCA
has led to reductions in thebody-fat percentage andvisceral fat level as well as behavior change among theparticipating associates. Some participants noted the useof a BCA makes it easier to see a difference (or a positiveeffect) as it visualizes their body shape. We plan to use a
BCA in annual health checkups and health guidance to raiseassociates’ interest in changing themselves and provide
better motivation for their behavior change.
*5: Knowledge, willingness and ability to obtain, understand and utilize health-related
information

Mental Health Support

Early detection/ Preventive
early resolution measures

Since the occurrence of a serious accident in 2019, we havebeen working to eliminate accidents related to poweredmachinery and constantly upgrading our physical andadministrative measures. Specifically, we have incorporated
into our new and existing equipment a mechanism that cuts
off power whenever an operator accesses a machine with its
safety device disabled. We have also rebuilt our equipment
safety assurance system. The system includes a visualizationof which parts of the equipment are shut down, the control
category under which it is operating and safety featurechecks by qualified equipment safety inspectors.
Moreover, to make further efforts toward zero accidents,
we believe that it is important to prevent accidents causedby the unsafe behavior of operators themselves, including
taking a shortcut, omitting a step in a particular work process
or showing disregard for safety. In fiscal 2023, as part ofhuman-related measures, we started undertaking an initiative
to quantitatively assess the tendencies of individuals, namely

Preventing
relapsesIn order to cultivate knowledge, awareness and the skills
necessary to prevent accidents and disorder, Toyota
Industries proactively provides safety and health education,
including education required by law to cultivate relevant
knowledge and skills and to raise safety and healthawareness, in addition to grade-based education andjob-category-based education. Through these efforts, weare promoting the development of human resources andworkplaces that places the highest priority on safety.

encourage behavior change,along with the results of a
KENKO Challenge 8 survey. As
for the other approach covering
the entire Company, we focus
on conveying the meaningof the initiative and providing
information on workplace
programs to improve each of
the eight lifestyle habit items through meetings of the Plant
Safety and Health Committees.
With a declining labor force and aging society, it isessential to maintain the physical fitness of associates.
However, the score for “Exercise” was lower than otherlifestyle habit items defined in the initiative. In response,
we will promote various efforts and initiatives to encourage
associates to exercise during a short break or after work.
To prevent and ameliorate metabolic syndrome, weWorkplaces
Mental health education
Stress check system

Encouraging associates
to be more aware of theirhealth and offering
advice on healthimprovement measures

Internal and external
health-related hotlines

Understanding the causesof stress in the workplaceand improving working
environment

Interviews as part ofhealth checks<Line care>
Disseminatingknowledge on skills torecognize problems

Workplace Check
Results Viewing System

Return-to-work support

cases where a problem is detected early and still in the mild
stage.
Additionally, we have been conducting an annual stresscheck on all associates since fiscal 2017. We feed backthe check results to all participants and workplaces withsuggestions for improvement while setting up an individualinterview with a doctor for those wishing to do so, including
making an individual recommendation to associates foundto have a high level of stress through the internal check, andproviding improvement support as necessary to individual
workplaces.
Major Health Promotion Events in Fiscal 2023
Stop smoking
awareness event

World No Tobacco Day: One-day no smoking (May 31)
No Smoking Days: Half-day no smoking (for 9 days)

Walking events

Held jointly with health insurance association twice a year inspring and fall (2,432 participants)

Early detection

Providing financial aid for various examinations(used by 958 associates)

Major Activity Indicators
Activity indicator
Participants of age-based health education*6
Average score of KENKO Challenge 8*7
Rate of undergoing a stress check
Overall assessment of the stress check
results (National average: 3)*8

FY2021
FY2022
FY2023—1,140 persons 2,576 persons
5.51
5.54
5.58
99%
99%
99%
3.28

3.27

3.27

*6: Temporarily suspended from March 2020 for prevention of COVID-19. In 2021, held
only during the period from July to December.
*7: Average score at which associates are practicing the eight health habits(1. Desirable weight, 2. Breakfast, 3. Snacks, 4. Sleep, 5. Exercise, 6. Alcohol
consumption, 7. No smoking, 8. Stress level) (Scale of 1 to 8)*8: Assessed using the conversion table of raw scores of the Brief Job Stress
Questionnaire (1: High stress; 3: National average; and 5: Low stress on a five-point
scale)

Response to COVID-19
In fiscal 2023, we again provided workplace vaccinations
to all willing associates at Toyota Industries facilities. As
another response, we updated our Infectious Disease
Response Manual as necessary in accordance with theinfection alert level announced by Japan’s national and local
governments, communicated the revisions thoroughly within

Toyota Industries and dealt with the changing situations
appropriately. Based on the experience, we have formulated
the Infectious Disease Basic Business Continuity Plan,
which compiles our responses to all risks anticipated upon
the outbreak of a new variant of COVID-19 or an unknown
infectious disease.

55

Relationship with Our Stakeholders

Top Message

Value Creation

Initiatives for Growth

Promotion of ESG
Initiatives

Corporate andFinancial Information

Relationship with Our
Stakeholders

Relationship with Our Local Communities
To contribute to the harmonious and sustainable development of the earth and society, we actively undertake social
contribution activities while respecting the culture, traditions and history of each country.

Basic Perspective
Based on the Sustainability Policy and as a global company, Toyota Industries seeks to contribute broadly tosociety through all its corporate activities conducted in each country and region. Simultaneously, we aim to realize
a sustainable society and the growth of local communities with an emphasis on the areas of social welfare, youth
development, environmental protection and community contribution. While providing cooperation and support throughpersonnel, facilities, funds and know-how, we undertake initiatives to promote employees’ participation in social
contribution activities.

n Implementation Structure

We have established the Social Contribution Group within the General Administration Department in the Head Office.
Each plant and Group company of Toyota Industries around the world collaborates with each other and promotessocial contribution activities matched to the local characteristics and needs while cooperating with NPOs andinteracting with local community members.

Enlightenment Activities

Dialogue with Local Communities

We promote a range ofactivities for employees ofToyota Industries and its
Group companies to increase
their interest in social issues
and cultivate a mindset toalways think about what they
can do to address thesePruning and weedingby an employee association
issues. Such activities include
donating one item per one
person to help welfare facilities to hold a charity bazaar;
social welfare and environmental protection activities of
employee associations*9; providing information on volunteer
activities via the intranet; and presenting examples of social
contribution activities of Group companies across the world.
In this way, we provide various opportunities and venues toparticipate in social contribution activities.

We hold local community
meetings for the purpose of
sharing and resolving various
issues in each community.
These meetings areattended by local community
representatives and responsible
persons of Toyota Industries
Local community meetingin the general administration,
environment and other relevant departments. Dependingon the theme of the meeting, representatives from the local
government also join. Participants exchange opinions not
only on our business activities and associated environmental
risks but also on local events and activities for crime/disasterprevention and traffic safety.

Activity Examples of Toyota Industries Group

Japan Paralym Art® Illustrations on the Cover of Internal Newsletters

Social welfare

Since April 2021, we have been using illustrations by artists with disabilities on the coverof our monthly internal newsletters in support of the Paralym Art® initiative promoted by
the Shougaisha Jiritsu Suishin Kikou Association. The initiative aims to promote the social
engagement and financial independence of persons with disabilities through their artwork.
Each month, we ask a different artist to draw an illustration of our products or people working
in various departments. This has facilitated an understanding of our products and helped us
cultivate a corporate culture that accepts diversity.

Internal newslettersusing Paralym Art® illustrations

Germany Job Introduction Event for Students TD Deutsche Klimakompressor GmbH (TDDK)Youth development

TDDK, which manufactures car air-conditioning compressors, invited female students fromnearby schools to its event to introduce jobs mainly in male-dominated fields, such as science,technology, engineering and mathematics. After a plant tour, they received a briefing on jobs
related to metal processing and electronic devices and experienced tasks under the guidance offemale employees serving as role models. TDDK holds a job introduction event about 10 times ayear for students and kindergartners to present their career options in the future.
TDDK has also created an Instagram account to showcase a variety of careers andprofessions.

Female students participating
in a job experience workshop

Worldwide Cleanup Activities

Environmental protection

Toyota Industries and its global Group companies are undertaking
cleanup activities as part of our environmental protection programs. In
May 2022, Toyota Industries conducted Shokki Smile Plogging*10, a fun,smile-filled cleanup event for colleagues and their families. The event
was attended by 409 employees and their families, and they spent a day
cleaning up their community as well as their minds.
Around the world, 34 Toyota Industries Group companies in 11
countries carried out their respective activities with a total of 7,913
participants mainly on Earth Day and World Cleanup Day.

Shokki Smile Plogging

Joining the World Cleanup Day(TMHRO*11)*10: A coined word that combines “plocka up (trash picking in Swedish)” and “jogging,” plogging is a fitness activity started in Sweden in 2016.
*11: Toyota Material Handling Romania s.r.l

India Community Support for a Better Living Environment Toyota Material Handling India Pvt. Ltd. (TMH India)

Community contribution*9: Voluntary organizations formed by employees at each job level

Major Social Contribution Activities of Toyota Industries and Group Companies
Theme

SocialwelfareYouthdevelopment

Environmental
protection

56

Toyota Industries Report 2023

Activities
Events to interact with persons with disabilities (Japan)“Welfare Festival,” farming experience, Walk Rally(orienteering) and other events
Donating and leasing free of charge materials handlingequipment (worldwide)
Christmas donations (worldwide)
Paralym Art® illustrations on the cover of internal
newsletters (Japan) P. 57
Providing monozukuri workshops (Japan)
Holding plant tours and work experience events (worldwide)
Holding mini concerts at elementary schools (Japan)
Job introduction event for students (Germany) P. 57
Providing environmental education program for elementary
school students (Japan)
Donating benches that made effective use of thinned wood
(Japan)Tree-planting activities to curb global warming (worldwide)
Cleanup activities (worldwide) P. 57

Theme

Activities

Community
contribution

Participation in traditional events (Japan, India)
Volunteer activities to give back to local communities (Japan,
U.S.A.)
Repair of welfare facilities, tree pruning, park maintenance, etc.
Cooperating in disaster prevention and fire-fighting activities(Japan, U.S.A., Germany)
Community support for a better living environment(India) P. 57

Other

Holding charity concert (Japan)
Disaster relief and humanitarian support (worldwide)
Blood donation drives (worldwide)

Every year, TMH India, which engages in the sales and servicing of materials handlingequipment, provides support to nearby schools, welfare facilities and other organizations
according to their needs. In fiscal 2023, TMH India provided support amounting to some ¥7.8
million to 10 organizations.
Major support provided:
Installing new toilets and water dispensers equipped with water purifiers for better water and hygiene
control; installing solar power generation systems; donating school desks and chairsn Status of Social Contribution Activities in Fiscal 2023

Children using donated desks and chairs

CSR Material Issue

Total for companies outside Japan

Total for Toyota Industries Corporation

Grand total

12,553 persons from 69 companies
Activity expenses: ¥263,955,000

6,546 persons from 1 company
Activity expenses: ¥603,073,000

28,500 persons from 100 companies

Total for companies in Japan

9,401 persons from 30 companies
Activity expenses: ¥47,370,000¥914,398,000*12*12: On a consolidated basis including Toyota
Industries Corporation and its major
subsidiaries as of February 28, 2023

57

Corporate GovernanceTop Message

Value Creation

Initiatives for Growth

Promotion of ESG
Initiatives

Corporate andFinancial Information

Corporate GovernanceCorporate Governance Structure
Toyota Industries strives to enhance its corporate value in a stable manner over the long term and maintains
society’s trust by earnestly fulfilling its social responsibilities in accordance with its Basic Philosophy. To that end,
Toyota Industries endeavors to further enhance its corporate governance in its efforts to maintain and improve
management efficiency and the fairness and transparency of its corporate activities.

Basic Perspective on Corporate GovernanceToyota Industries regards the most important managerial task is to earn trust broadly from society and enhance
our corporate value on a stable, long-term basis. We aim to do this task based on our Basic Philosophy and byearnestly fulfilling our social responsibilities. Our basic focus is on contributing to the creation of an enriched society
through business activities, and we believe it is essential to cultivate good relationships with stakeholders, including
shareholders, customers, business partners, creditors, local communities and employees.
Accordingly, we strive to enhance our corporate governance in order to maintain and improve management
efficiency, fairness and transparency. For example, we have established a structure to quickly and flexibly respond tochanges in the business environment and have been working to augment management oversight and ensure the timely
disclosure of information.
More specifically, the following basic policies drive our initiatives.
(1) We seek to ensure shareholders’ rights and equality.
(2) We seek to promote appropriate collaboration with stakeholders other than shareholders (including customers,
business partners, creditors, local communities and employees).
(3) We seek to conduct appropriate information disclosure and ensure transparency.
(4) We seek to perform the roles and duties of the Board of Directors appropriately in order to make decisions in atransparent, fair, quick and resolute manner.
(5) We seek to promote a constructive dialogue with shareholders.

Implementation Structuremonozukuri (manufacturing). Through this supervisory
function of outside directors, we ensure the legality andvalidity of the Board’s decisions as well as the directors’
execution of duties from an objective perspective. Moreover,a variety of issues concerning important management
matters, such as our corporate vision, management policies,
medium-term business strategies and major investments,
as well as crucial projects in each business division, arediscussed by the Management Committee, which is

Toyota Industries convenes monthly meetings of the Boardof Directors to resolve important management matters andmonitor the execution of duties by directors. We appoint
outside directors who have a wealth of experience andknowledge such as business management. They attend
meetings of the Board of Directors and give opinions
and ask questions as deemed necessary based on theirindividual, wide-ranging experience and insights related
to the management of globally operating companies andShareholders’ Meetings
Selection/Dismissal

Selection/Dismissal

Reporting

Cooperation

Accounting Auditor

Reporting

Audit & Supervisory Board
Board of Directors

ReportingAccounting
Audit

Selection/Dismissal

Executive Compensation
Committee

Exchange of Opinions
Appointment/
Monitoring

Executive Appointment
Committee

Management Committee(Deliberates on important matters from management’s perspective)

Discussion/
ReportingMonitoring
Selection/Dismissal
Cooperation

Direction/
Supervision

CSR

Quality

Environmental

Production

Export Transaction
Controls

Procurement

Safety and HealthTechnologies

Profit Improvement

candidates, we also perform comprehensive evaluations fromthe viewpoint of placing the right persons in the right positions,while ensuring a balance among the financial, accounting
and legal insights, knowledge on our business fields and thediversity of perspectives on corporate management.
Based on these policies, we review proposals, exchange
views and confirm details at the three-member Executive
Appointment Committee, which consists of Toyota Industries’
president and two independent outside directors, and submit
these proposals to the Board of Directors for resolution.

n Experience and Expertise of Directors and Audit & Supervisory Board Members
CEO orequivalent
position ofbusinessenterprise

Materials
handling
equipment

Automobile

Textilemachinery

Tetsuro Toyoda

○

○

○

○

Akira Onishi

○

○

○

○

Koichi Ito○

Shuzo Sumi○

Junichi Handa○

Knowledge of industries

Audit &
supervisoryboard
members

Technology
IT and digitaldevelopment,
technologies
manufacturing○○

Kazunari Kumakura

Akihisa Mizuno○

Masanao Tomozoe○

ESG

Internationality

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○
○

○
○

Legal affairs
and riskmanagement○○

Toru Watanabe

Finance andaccounting○○

Toru Inagawa

Human Resources

Introduced a divisional organization system
Reduced the number of directors (from 30 to 17)
Introduced a managing officer system
Appointed independent members of management
Reduced the number of directors (from 17 to 11)
Conducted an evaluation of the effectiveness of the Boardof Directors
2019 Revised executive management structure and reduced thenumber and rank of executives
2022 Revised the composition of the Board of Directors(independent outside directors accounting for a third or
more of the total number of members)

We carry out comprehensive evaluations from the viewpointof placing the right persons in the right positions. We seeka balance among making sound and quick decisions,managing risk appropriately, monitoring execution ofbusiness operations and covering a specific function orbusiness division of Toyota Industries.
In appointing audit & supervisory board member

Monitoring*2: Committees

1971
2006
2006
2010
2016
2017

n Policies and Procedures for Selection(and Dismissal) of Senior Management andAppointment of Director Candidates

Members of
the Board

Cooperation

Initiatives for Enhancing Corporate GovernanceSelection and Dismissal of Senior Management and Appointment of
Director and Audit & Supervisory Board Member Candidates

Toyota Industries’ Corporate
Governance Reports are available on
its Website (in Japanese).

*1: Functional
Meetings

President

Management Council(Follows up on the execution of business operations)Audit & Supervisory
Board Office

Link tothe report

Moreover, we strive to maintain and improve internal controls
by establishing the Audit Department and conducting
internal audits of Toyota Industries’ business divisions anddepartments as well as our subsidiaries.

composed of directors at the executive vice president level
and above as well as relevant senior executive officers
and other executives, prior to deliberation by the Board of
Directors.
At meetings of the Management Council, directors,
audit & supervisory board members and senior executive
officers convene to report and confirm the monthly statusof business operations and share overall deliberations at
Board of Directors meetings and other management-related
information.
In addition, issues pertaining to human resources,quality, production, procurement and technologies are
discussed at the corresponding functional meetings. We
have also put in place committees to deliberate on more
specific matters, such as corporate social responsibility(CSR), the environment and export transaction controls.
These functional meetings and committees discuss
important matters and action themes in respective areas.

○

○

○

○

○

○

○

○

○

○

Reporting

Functional Meetings*1, Committees*2

Audit Dept.
Internal Audit

Senior Executive Officers
Business Divisions/In-House Company/Departments
Subsidiaries/Affiliates

These entities deliberate andfollow up on issues in respective areas.

Appointment of Independent Members of Management
As a publicly listed company, Toyota Industries strives toensure the fairness and transparency of management.
Following the Securities Listing Regulations stipulated by
the Tokyo Stock Exchange and Nagoya Stock Exchange,
respectively, to further enhance our corporate governance,

Toyota Industries has appointed as independent membersof management two outside directors and two outside audit& supervisory board members who are deemed to have noconflicts of interest with our shareholders.

(As of June 9, 2023)

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Toyota Industries Report 2023

59

Corporate GovernanceTop Message

Value Creation

Promotion of ESG
Initiatives

Initiatives for Growth

Corporate andFinancial Information

Corporate Governance

Effectiveness of the Board of Directors and Its Evaluation

Determination of Compensation for Directors and Audit & Supervisory
Board Membersn Matters Related to Policy for Determining
Individual Compensation for Directors

n Basic Perspective• We ensure fairness and transparency.
• We emphasize incentives for achieving better businessperformance and sustainable growth, link compensation
with the business performance of Toyota Industries andreflect individual duties and performance.

n Compensation Structure• Compensation for directors consists of fixedcompensation (basic compensation) and bonuses(compensation linked to business performance). A bonus
is further divided into a portion linked to a single fiscal
year indicator and a portion linked to medium-term
indicators.
• However, because outside directors are independentof the execution of business operations, only the fixedcompensation is paid to outside directors.

n Method of Determining Individual Compensation• We have established the Executive Compensation
Committee comprising three members, namely Toyota
Industries’ president and two independent outside
directors.
• To ensure the Committee’s objectivity and transparency,
we have a rule that independent outside directors makeup a half or more of the total number of its members.
• The Executive Compensation Committee deliberates
on a policy for determining individual compensation for
directors, proposed compensation for each director andimportant matters related to compensation.
• The Board of Directors votes on the policy based on
the results of deliberations made at the Executive
Compensation Committee.
• From the standpoint of determining directors’ individualcompensation amounts flexibly and swiftly, the Board of
Directors delegates the related decision-making authority
to the president (or to the chairman).
• The president (or the chairman) determines the directors’
individual compensation amounts based on the policy
and the results of deliberations made at the Executive
Compensation Committee.

 olicy for Determining Fixed Compensation,nP
Bonuses and Their Ratio[Fixed Compensation]• Fixed compensation for directors consists of monthly
salaries, which are paid periodically while in service.
• We determine a reasonable level of individualcompensation amounts while giving consideration toother companies’ compensation levels as well as therank and duties of each director.
[Bonuses]• We pay a bonus at a certain time after the end of theGeneral Shareholders’ Meeting in each fiscal year.
• For the portion linked to a single fiscal year indicator, we
use the consolidated operating profit as the indicator andcalculate the amount of bonuses for each rank basedon the amount of consolidated operating profit for the

60

Toyota Industries Report 2023

previous fiscal year.
•F or the portion linked to medium-term indicators, weevaluate such management indicators as operating
profit ratio of the past three fiscal years and calculate
the amount of bonuses for each rank based on theevaluation results.
•W e have selected the said indicators because we havedetermined that they appropriately align with the basic
perspective of our policy for determining individualcompensation for directors.
• In determining the amount of bonuses, we giveconsideration to dividends, employees’ and othercompanies’ bonus levels, past records of bonus
payments and execution of duties and assigned work.
[Ratio]•A s a guide, we use the ratio of fixed compensation toa bonus of directors (excluding outside directors) of
60:40, with the portion linked to medium-term indicators
accounting for roughly 10% of the bonus. However, thisdoes not preclude us from using another ratio dependingon the amount of operating profit for the corresponding
fiscal year.

Through interviews with outside directors and audit &supervisory board members, Toyota Industries asks themto evaluate the effectiveness of the Board of Directors andcollects their feedback. The following summarizes the resultsof their evaluation.

n Evaluation

1) The Board is operated efficiently with a clear focus
depending on the agenda and spends sufficient time toenable focused discussion on important business issues.
2) The Board members include outside directors withextensive experience, and the Board proactively asksthem to provide opinions on each item on the agenda forlively and constructive discussion.
3) Appropriate decision-making and management oversightare ensured by reporting and deliberating on importantmatters several times to make sure that these matters
are thoroughly discussed prior to the resolution.

About

40%

Monthly salaries(fixed compensation)

About

60%

Director(Of which, outside
director)

Audit & supervisoryboard member(Of which, outside
audit & supervisoryboard member)

Total

Monthlysalaries

Bonuses(¥ million)(fixedcompensation)(Compensation
linked to businessperformance)

No. ofapplicable
executives

308
(45)

243
(45)

65
(—)

9
(4)

91
(27)

91
(27)

—
(—)

4
(2)

400

334

65

13

Total
compensation

As shown above, Toyota Industries’ Board of Directors
has been evaluated as effective. In response to certain
feedback calling for further improvement, we will undertake
improvement efforts on a continuous basis.
Meetings of the Board of Directors and Relevant Committees
Meeting body

No. ofmeetings held
per year

Board of Directors

12

Average attendance rate

1

99%
(Directors and audit &supervisory board members)
100%(All committee members)

1100%(All committee members)

13

100%
(Audit & supervisory board members)

Audit & Supervisory Board Members and Audit & Supervisory Board

Compensation for Directors and Audit & Supervisory Board Members
Executive category1) Amid the changing business environment, the Board’s
agenda should pay greater attention to matters matchedto the demands of the times, such as those related to
management focused on environmental, social andgovernance (ESG) factors.
2) The Board should continue to deepen the discussion on
the status of both Group-wide and respective business
operations, including direction over the medium tolong term.

Executive Compensation
Committee
Executive Appointment
Committee
Audit & Supervisory
Board

Breakdown of Executives’ Compensation (Excluding Outside Directors)
Bonuses(compensation linked tobusiness performance)n Suggestions for Further Improvement of theEffectivenessNotes:
1. The figures include three directors (of whom one outside director) who resigned at
the conclusion of the 144th General Shareholders’ Meeting held on June 10, 2022.
2. Bonuses show the amounts approved by resolution of the Board of Directors
meeting held on May 18, 2023.
3. At the 144th General Shareholders’ Meeting held on June 10, 2022, it wasdetermined that the compensation for directors is to be changed from monthly toannual and the compensation is to be within ¥900 million per year (of which theamount of compensation for outside directors is to be no more than ¥150 million).
4. At the 132nd General Shareholders’ Meeting held on June 23, 2010, it wasdetermined that the compensation for audit & supervisory board members is to bewithin ¥15 million per month.

Toyota Industries has four audit & supervisory board
members, two of whom are full-time members and two ofwhom are outside members.
The four members attend meetings of the Board of
Directors and provide their opinions as appropriate. The
full-time members also attend other important meetings andreceive reports on the execution of duties by directors andother responsible persons. They work to monitor and provide
advice on the management status through on-site audits
at the Head Office, major business sites and subsidiaries,
thereby contributing to the maintenance and improvement ofinternal controls. They also collaborate appropriately with theaccounting auditor and the internal audit department.
Meetings of the Audit & Supervisory Board are held
every month to share information on audits conducted byfull-time members with outside members, to receive reports
on important business statuses from Board members
and responsible persons, and to receive reports from theaccounting auditor regarding how key audit matters havebeen examined and determined.
At these meetings, the members also discuss and makedecisions on important matters, such as audit policies andplans, the audit method used by the accounting auditor andthe appropriateness of their audit results.

n Compensation for Audit & Supervisory Board
Members
Compensation for audit & supervisory board members
only consists of fixed compensation, which is determinedthrough discussion of audit & supervisory board members
based on certain criteria determined by Toyota Industries.

61

Corporate GovernanceTop Message

Value Creation

Initiatives for Growth

Promotion of ESG
Initiatives

Corporate andFinancial Information

Corporate Governance

Cross-Shareholdings
Basic Policy
Cooperative relationships with various companies are essential in expanding business and achieving sustainablegrowth. From the medium- to long-term perspective of enhancing corporate value, our policy is to determine if crossshareholdings are needed by comprehensively giving consideration to their importance in terms of our businessstrategies and relationships with business partners.

Exercise of Voting Rights
While respecting the management policies of individual
investee companies, we determine how we exercise ourvoting rights by checking each item on the agenda fromthe perspectives of medium- to long-term enhancementof corporate value, policy concerning shareholder returns,
corporate governance and social responsibility.

Verifying Appropriateness of Cross-Shareholdings
Each year, the Board of Directors verifies if the purposeof cross-shareholdings is appropriate and if associatedbenefits and risks are commensurate with capital cost. Morespecifically, we conduct verification by using both quantitative
information, which is based on a comparison of total
shareholder return and weighted average capital cost as wellas the return on equity (ROE) of each investee company, andqualitative information, such as the transaction status andthe outlook of future business relationships. In fiscal 2023,
we held shares in 35 listed companies, a decline from 46 infiscal 2011.

within the scope of J-SOX based on the degree of impact on
the reliability of financial reporting. We determined that ourinternal controls over financial reporting as of the end of fiscal
2023 were effective, and accordingly, submitted an Internal
Control Report in June 2023. The report was reviewed byindependent auditors and judged fair in their Internal Control
Audit Report.
Internal Control Assessment System (Based on J-SOX)
Internal control activities undertaken by eachdepartment and consolidated subsidiary(Establishment and operation of internal controls)
Detection ofReview of internal
Improvement of deficiencies
controls byinternal controls
Audit Department

Annual financial report
Internal Control
ReportInternal Control
Audit Report

Audit on internal controls by independent auditors

62

Toyota Industries Report 2023

Frequency

Generally twice a year

Chairperson

President

Members

Executive Vice President, full-time audit & supervisoryboard members, general managers of each businessdivision and related senior executive officers/executive
officers

OfficeEnterprise Risk and Compliance Management Office

Main Agenda• Determining the direction of initiatives under the Toyota
Industries Group Sustainability Policy; approving actionplans; evaluating results• CSR materiality; determining and reviewing action
policies and targets• Risk management for the Group

Link toSustainability
PolicyRespect for Human Rights

Since its founding, Toyota Industries has endeavored to make the earth a better place to live and enrich society
based on the Toyoda Precepts (corporate creed). We recognize that in order for us to continuously contribute to theharmonious and sustainable development of the earth and society, it is essential not only to ensure legal compliancebut also respect the human rights of all people involved in our corporate activities. Under this recognition, we havebeen promoting our initiatives to respect human rights in accordance with the United Nations Guiding Principles on
Business and Human Rights.

Formulation of the Human Rights Policy
Toyota Industries has formulated the Toyota Industries Group
Human Rights Policy (“Human Rights Policy”) under the belief
that we should step up our ongoing human rights initiatives.
While giving consideration to the opinions andinformation provided by external experts and other parties,
the Human Rights Policy was formulated after discussions
and approval by the CSR Committee led by the president.
It is positioned as the highest-level policy related to humanrights within the Toyota Industries Group.
Link tothe policy

Sustainability Implementation Structure
Based upon our belief that the realization of the Toyoda
Precepts (corporate creed) and Basic Philosophy makes acontribution to a sustainable society, Toyota Industries has
established the CSR Committee (chairperson: president)
to determine the directions for Group-wide activities in

CSR Committee

Basic Concept

Internal Control System
In accordance with the Companies Act, in May 2006 Toyota
Industries’ Board of Directors adopted the Basic Policies
for the Establishment of an Internal Control System (Basic
Policies) to ensure compliance, risk management as well as
the effectiveness and efficiency of business operations by
incorporating these policies into each business segment’s
annual policies and day-to-day routine management. The
CSR Committee, at its meeting held in March, assesses the
progress made in implementing the Basic Policies in theyear under review and determines actions for the coming
year, including reviewing the implementation structure andenhancing day-to-day operational management.
Furthermore, based on the Financial Instruments andExchange Law (so-called Japanese Sarbanes-Oxley Act(J-SOX)), we have established and appropriately operated aninternal control system to maintain the reliability of financial
reporting. The system’s status and progress are reviewed by
the Audit Department and audited by independent auditors.
We determine which Toyota Industries Group companies fall

These issues are also, as deemed necessary, reported toand deliberated on by the Board of Directors. Each division
and Group company incorporates these decisions into their
specific activities and carries them out.

accordance with the Toyota Industries Group Sustainability
Policy, approve action plans and evaluate the results.
The CSR Committee deliberates and makes decisions
on the Group-wide issues concerning sustainability andrisk, including the CSR material issues (CSR Materiality).

Implementation Structure
Toyota Industries recognizes that the Group’s corporate
activities, from research and development to procurement
and provision of products and services, may directly or
indirectly impact human rights. To respond to various humanrights issues, we have established the Human Rights Task
Team, which is led by the Human Resources Department andconsists of the relevant departments, including the Corporate
Planning, Purchasing and Legal departments. In accordancewith the Human Rights Policy, the team engages in various
activities, such as sharing each department’s initiatives andthe latest social trends related to human rights and creating
action plans.

63Corporate GovernanceTop Message

Value Creation

Initiatives for Growth

Promotion of ESG
Initiatives

Corporate andFinancial Information

Corporate Governance

Human Rights Due Diligence

Efforts for Correction and Remediation

We conduct human rights due diligence to specify, preventand mitigate negative impacts on human rights caused by
the Toyota Industries Group’s corporate activities.
The Human Rights Task Team has evaluated humanrights issues relevant to the corporate activities of the
Toyota Industries Group, which were identified based on

the handbooks of Japan’s Ministry of Justice and the Japan
Federation of Economic Organizations (Keidanren) as well
as checking items defined by external rating agencies.
Consequently, we have specified two priority humanrights issues, namely immigrant labor and raw material
procurement, and have been undertaking related activities.

n Initiative on Immigrant Labor (Forced Labor of
Non-Japanese Workers)

found that, as of December 31, 2022, 216 companies haveaccepted trainees under the program. The largest numberof trainees was from Vietnam, accounting for 40% of all
trainees.
At our consolidated subsidiaries, we have further
surveyed the fees charged to these Vietnamese trainees.
As a result, we have confirmed that no trainees havebeen charged fees in excess of the upper limit specified in
Vietnam’s domestic law. We have also set up a consultation
hotline for non-Japanese trainees working under the program
by utilizing the Japan Platform for Migrant Workers towards
Responsible and Inclusive Society. Our efforts in the future
will be geared toward reviewing fee charging, which, if done
inappropriately, could lead to forced labor of non-Japanesetrainees.

Amid the growing attention to protecting and respecting thehuman rights of non-Japanese workers, Toyota Industries
regards forced labor of non-Japanese trainees working
under Japan’s Technical Intern Training Program as one of its
priority human rights issues.
External experts have pointed out that there is possibly
a risk of forced labor when accepting trainees from overseas
through local brokers, as these brokers may charge
exorbitant placement fees to trainees, who end up coming toJapan with a huge debt.
Toyota Industries conducted a survey to check trainee
enrollment and appropriate operation of the program at its
consolidated subsidiaries and major suppliers in Japan andn Initiative on Raw Material Procurement(Minerals)
As another initiative to respect human rights, Toyota
Industries has formulated the Policies and Approaches to
Responsible Mineral Sourcing. Under the policies, we havebeen conducting procurement activities excluding minerals
that may involve human rights abuses, such as funding
armed groups, child labor, forced labor and working underpoor conditions.
More specifically, such minerals include conflict minerals(tantalum, tungsten, tin and gold) that may fuel humanrights abuses by armed groups and armed conflicts in the
Democratic Republic of the Congo (DRC) and adjoining
countries as well as cobalt and other minerals that routinely
involve child labor. Under this recognition, we conduct anannual survey on these minerals within Toyota Industries andat applicable suppliers and confirm that there are no humanrights issues in this area. We will continue to work toward
ensuring the appropriate procurement of raw materials.
> Rate of performing an annual survey on conflict minerals
at applicable suppliers (non-consolidated): 100%

Japan to seek advice on compliance-related matters,
including human rights, with a sense of security and without
being exposed to negative consequences.

Education and Awareness-Raising Activities
To remain a company committed to respecting the humanrights of all people involved in our corporate activities,
the relevant departments of Toyota Industries participate
in lectures hosted by the government and human rights
organizations and joint study sessions with other Toyota
Group companies. We also hold training sessions forconsolidated subsidiaries, in which their top management
participates. Our education and awareness-raising activities

target executives and all employees and aim to cultivate acorrect knowledge of human rights and encourage themto put the idea into practice. Along with providing induction
training for new employees, grade-based training and otherconventional programs, we have been making proactive
efforts even during the COVID-19 pandemic, such as
designating a particular week as “Human Rights Week” andutilizing e-learning programs.

Training to Raise Human Rights AwarenessTargetDescription

Aim

Top management &managers of affiliated companies

External human rights awareness training

Cultivate knowledge of and sensitivity tohuman rights as a manager; gain skills to
support awareness-raising activities

Newly promoted managers

Training for newly promoted managers

Newly promoted team leaders

Training for newly promoted team leaders

Training for managers

Cultivate knowledge of andsensitivity to human rights as a leader

External human rights awareness training
All employees

External Human Rights College series of seminars(only for those nominated)

Raise awareness of human rights

Delivery of a special message during
Human Rights Week
Newly joined employees

Induction training for newly joined employees

Gain knowledge of human rights

Dialogue with Stakeholders
Toyota Industries promotes dialogue with various internal andexternal stakeholders and works with its top management
and the relevant departments to reflect such dialogue in its
future corporate activities.

Policies and Approaches to Responsible Mineral Sourcing
Toyota Industries Corporation and its subsidiaries promote the acquisition of materials
with full deliberation and care to avoid the procurement or usage of materials which
are unlawful or which are obtained through unethical or otherwise unacceptable means.
We recognize that the situation surrounding conflict minerals originatingin Covered Countries is a significant social issue in supply chains. We pursue
procurement and usage that are free from conflict minerals originating in Covered
Countries and relating to illegal conduct including human rights infringement.
We also recognize that human rights abuses such as child labor in the procurementof cobalt, etc., are a serious social problem, and we pursue procurement activities that
do not include minerals that are suspected of being involved in such abuses.
To achieve such procurement and usage, we conduct inquiries tracing backthrough our supply chains and confirm if such minerals are used. In addition, we
take appropriate steps to discontinue procurement of materials that can cause social
problems such as human rights violations or financing of armed groups, if suchusage is detected. Based on mutually beneficial relationships, we ask our suppliers
to understand our policies and approaches and to conduct responsible material
procurement.

Toyota Industries operates a compliance hotline (external
helpline) that allows employees of Toyota Industries
Corporation and its consolidated subsidiaries in and outside

Communication Channels

Employees................Labor-management round table meetings,
annual labor-management meetings, hotline
Shareholders
and investors.........Toyota Industries Reports, Toyota Industries’
official website, ESG dialogue
Business partners.....Procurement policy meetings, hotline
Local community......Inviting residents to Toyota Industries’
events, participating in local events, local
community meeting

Link tothe policies

Policies and Approaches to Responsible Mineral Sourcing

64

Toyota Industries Report 2023

65

Corporate GovernanceTop Message

Value Creation

Initiatives for Growth

Promotion of ESG
Initiatives

Corporate andFinancial Information

Corporate GovernanceCompliance
Efforts for Prevention of Bribery andCorruption

Basic Perspective
We believe that compliance means both adhering to laws and regulations as well as ethics and social norms. As such,it is vital to promote compliance throughout the Toyota Industries Group under the leadership of top management.
To promote compliance, we have established the Compliance Subcommittee (led by an executive responsible forlegal affairs) as a subordinate organization to the CSR Committee (led by the president). Every year, the subcommittee
formulates an action policy that covers the entire Toyota Industries Group and conducts a follow-up check on the
progress of corresponding activities. We have also established a system to report serious violation cases that occur
within the Toyota Industries Group, including bribery, corruption and violations of antitrust laws, to the Compliance
Subcommittee.
In response to the issue of regulatory violation in certain engines for lift trucks related to Japan’s emissions
certification in fiscal 2023, we will thoroughly identify compliance risks, revise our compliance structure and activities
and work for improvements while seeking advice from external experts.
CSR Material Issue> Number of serious compliance violations in the Toyota Industries Group: 1

Formulating the Employee Code of Conduct and Fully Educating andInstilling the CodeToyota Industries has formulated and distributed to executives
and all employees the Toyota Industries Corporation
Employee Code of Conduct, which serves as conduct
guidelines that should be observed by employees. It covers
such topics as compliance (prevention of bribery, corruption
and profit sharing, conformance to antitrust laws andothers), respect for human rights, safety and health as wellas environmental conservation. Accordingly, we have beenworking to instill the Code through group training and othermeans. Consolidated subsidiaries in and outside Japan haveformulated their own Code of Conduct appropriate to theirrespective business lines and corporate cultures and havebeen implementing Company-wide awareness-raising andeducational activities once a year. In April 2023, we held ameeting to raise compliance awareness and communicate
both the revisions to the Code as described in the TOPIC
section below and our efforts to prevent the recurrenceof the regulatory violation related to Japan’s emissions
certification for lift truck engines. In addition, we have created

TOPIC

and disseminated e-learning materials on 48 topics andcompliance mini quizzes on 48 topics (as of March 2023)
in order to cultivate a deeper understanding of complianceamong employees of Toyota Industries and our consolidated
subsidiaries in Japan and to create an environment in which
employees learn about compliance on their own.

> Execution rate of Employee Code of Conduct

enlightenment and educational activities by Toyota
Industries and consolidated subsidiaries in and outside
Japan: 100%n Example Topics of e-Learning Materials

Compliance; Antitrust laws; Prevention of bribery; Humanrights; Various types of harassment; Safety behavior;
Environmental protection; Management of confidential
information; Product liability; Accounting process; Quality;
Import/export controls

Revising the Toyota Industries Corporation Employee Code of Conduct

In fiscal 2022, Toyota Industries formulated the Sustainability Policy and Human Rights Policy to further promote
corporate activities whose values are aligned with those of society. In April 2023, we revised the Toyota Industries
Corporation Employee Code of Conduct for the first time since 2014 to implement thesepolicies.
The purpose of the revisions was to update the content based on the roles expectedof Toyota Industries and turn the Code into an action guideline for every employee amid
the growing call for responding to various issues, including those related to the Sustainable
Development Goals (SDGs).
We have been making efforts to educate and inform
employees about the Code, such as holding Company-wide
meetings and distributing enlightenment cards, so that they
Link to Codecan practice the Code to fulfill their social responsibilities andof Conduct
contribute to the realization of a sustainable society.

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Toyota Industries Report 2023

To prohibit and prevent bribery, in 2014 Toyota Industries
formulated the Global Guidelines for Bribery Prevention(or individual rules in countries high on the Corruption
Perceptions Index in accordance with their respective,
applicable laws) and has been conducting activities tofamiliarize employees with them in each country and region.

TOPIC

Formulating the Toyota Industries
Group Anti-Bribery Policy

In March 2023, we formulated the Toyota Industries
Group Anti-Bribery Policy to clarify our stance bothwithin and outside the Toyota Industries Group. We
have positioned the policy
above our Global Guidelines
for Bribery Prevention andhave been working tocommunicate and thoroughly
implement the policy in eachregion and country.

Efforts for Ensuring Compliancewith Antitrust Laws andCompetition Laws
As for antitrust laws, we operate a system to conduct a
check and review before and after employees of Toyota
Industries contact competitors and have been cultivatingawareness among employees for not acting in a mannerthat may possibly constitute a violation of antitrust laws.
Moreover, we have designated a particular month as“Antitrust Law Compliance Month” since fiscal 2016 to carryout enlightenment activities at relevant departments forclarifying our relationships with competitors and ensuring fairtransactions with business partners (e.g., the need to holdsincere dialogue with business partners to deal with changes
in the business environment caused by rises in various
costs). Consolidated subsidiaries in and outside Japan
have also been working to educate and raise awarenessof employees for preventing violations of antitrust laws andcompetition laws, such as forming cartels, in accordancewith local laws and regulations.

Link tothe policy

Early Detection and Prevention of Issues via Whistle-Blower System
The Toyota Industries Group has in place a whistle-blower
system to report and seek consultation on compliancerelated issues. In Japan as well as key countries in North
America, Europe, Asia, Oceania and South America, weoperate a compliance hotline (external helpline) that allows
employees and other relevant parties to seek advice fromexternal experts on compliance-related matters with asense of security and without being exposed to negative
consequences. In Japan, in response to the revisions to theWhistleblower Protection Act, which went into effect in June
2022, we have revised our related rules and communicatedthe revisions among employees while stepping up our efforts
to thoroughly protect whistle-blowers and ensure the early

resolution of problems. In fiscal 2023, we received 70 reports
and inquiries from within Toyota Industries and from its
consolidated subsidiaries in Japan on such matters as labor
management, working environment and ethics. After verifying
each report and inquiry, we have taken appropriate action
regarding each case. Our responses have been reviewed andjudged appropriate by external lawyers.
In fiscal 2017, we also set up a hotline for our major
suppliers to report and inquire about possible complianceviolations by Toyota Industries employees. Through these
initiatives, we ensure the early discovery and prevention ofissues and intend to become a “company on which society
places greater trust.”

Compliance Awareness Survey
Toyota Industries periodically conducts an employee
compliance awareness survey to check how complianceactivities have taken root among employees and how
well they know about the Code of Conduct and whistleblower system. By identifying the actual status andadding improvements, we have been working to makeour compliance structure more effective. In the mostrecent awareness survey, we confirmed that the degree ofrecognition of both the Code and whistle-blower system
was more than 95%. To maintain such a high level, we willcontinue to make efforts for further improvement.

67Corporate GovernanceTop Message

Value Creation

Initiatives for Growth

Promotion of ESG
Initiatives

Corporate andFinancial Information

Corporate GovernanceTax Governance
Activities in the Toyota Industries Group
Each consolidated subsidiary of the Toyota Industries Group
has set up a compliance committee (in Japan) and appointed
a compliance officer (outside Japan) to lead and promoteautonomous activities in respective communities. In North
America, Europe, China and Asia/Oceania, complianceofficers regularly hold conferences and facilitate collaborative
activities within each region.

In fiscal 2023, compliance officers from nine bases in
China attended the Compliance Officer Conference held in
the country. They shared information about the complianceactivities of each company and updates to relevant laws andexchanged views. After the conference, these bases havebeen conducting activities in a mutually coordinated manner.

Basic Perspective
The Toyota Industries Group regards the most important managerial task is to earn trust broadly from society andenhance its corporate value on a stable, long-term basis. We strive to contribute to society and maintain and enhance
corporate value by complying with the applicable tax laws and regulations of each country and region, as well as bypaying the appropriate level of taxes.

Tax Policy
Under the basic perspective described above, Toyota
Industries has formulated the Toyota Industries Group Tax
Policy.
The Toyota Industries Group will educate its employees asnecessary through tax and accounting training and e-learning
programs so that we are able to pay the appropriate level oftaxes and take the proper tax measures in accordance with
the Code of Conduct.
Link tothe policy
Compliance Officer Conference in China

Main Compliance Officers

EuropeThailandToyota Material Handling Europe AB

BT Midland Co., Ltd

Andreas Lundh

Krisaruj Sereecharoensak

United States

Vanderlande Group

Toyota Industries North America, Inc.

Vanderlande Industries Holding B.V.

Kim Parker

Carl Messemaeckers

China
Toyota Industries Management (China) Co., Ltd.

Zhu Lingling

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Toyota Industries Report 2023

Information Security
Basic Perspective
We recognize that the personal information of customers, employees and business partners as well as information
concerning our technologies and sales activities are assets that need to be protected. Accordingly, with the aim ofsafeguarding our information assets and strengthening their management, we have formulated the Basic Policies for
Information Security.
Basic Policies for Information Security(1) Legal compliance
We comply with laws and regulations related to information security while fostering awareness of them among employees.
(2) Maintaining a stable business foundation
We safeguard and manage information assets appropriately, carry out information security-related education and enlightenment
activities on an ongoing basis and seek to maintain a stable business foundation.
(3) Providing safe products and services
We provide safe products and services to customers and society by implementing information security measures in our businessactivities, including the development, design and manufacture of products and services.
(4) Information security management
We build a governance structure to enforce and manage information security and continue to promote and refine the structure.

69

Corporate GovernanceTop Message

Value Creation

Initiatives for Growth

Promotion of ESG
Initiatives

Corporate andFinancial Information

Corporate GovernanceRisk Management
Toyota Industries has set up the Information Security
Subcommittee (led by an executive in charge of the IT Digital
Promotion Department) as a subordinate organization to
the CSR Committee to reduce information security risks.
To thoroughly implement the initiatives adopted by thesubcommittee, we appoint information security managers*1
and information security administrators*2 at each departmentof Toyota Industries.
For consolidated subsidiaries and affiliates around theworld, we regularly hold meetings of information technology(IT) managers in each region to share information on security
incidents and countermeasures both in and outside the
Toyota Industries Group and to disseminate relevant policies.
Through these and other measures, we are increasing thelevels of security and security awareness throughout theGroup.

Organization for Promoting Compliance and Information Security
under the CSR Committee
CSR Committee
Activity reports

Approval and instruction

Compliance Subcommittee(in charge of compliance)

Information Security Subcommittee(in charge of information security)

Europe, North America
and China
ToyotaIndustries
Corporation

Consolidated
subsidiaries
in Japan

Consolidated
subsidiaries
outside Japan

Regional headquarters

Consolidated subsidiaries
outside Japan*1: Head of each department*2: A person within the department, appointed by the head

Information Security Managementn Information Security Monitoring and Incident
Response
To ensure the early detection of and prompt action against
cyberattacks, we have in place systems to monitor the
security of PCs and all other terminals used within the Toyota
Industries Group and to respond to incidents 24 hours a day,
7 days a week. We also share threat information with ourconsolidated subsidiaries and affiliates in and outside Japanto swiftly alert each company.
CSR Material Issue> Number of serious incidents
occurred: 0n Providing Education on Information Security
In addition to our ongoing training on targeted attacks via
e-mail and a cybersecurity awareness website, we createda Cybersecurity White Paper to further reinforce our efforts
to raise awareness of information security. The white paper
compiles past incidents that occurred within the Toyota
Industries Group, the current state of our security measuresand tasks ahead. It is also available in English and is
distributed to consolidated subsidiaries and affiliates aroundthe world with the aim to increase awareness throughout theGroup.

n Preventing Leakage of Confidential Information
As an effort to reinforce workplace activities led byinformation security managers and information security
administrators, we have created and distributed theInformation Security Managers/Administrators Guidebook,which describes the roles of each, the risk of damage causedby leakage of confidential information and response details.
In the future, we plan to distribute the guidebook to ourconsolidated subsidiaries around the world.

n Conducting Information Security Audits
In accordance with the All Toyota Security Guidelines(ATSG)*3, we annually inspect the implementation status of
information security at Toyota Industries and our consolidated
subsidiaries and affiliates around the world in order tomaintain and improve the level of information security on acontinuous basis. In performing ATSG-based inspections, we
also check the rationale for implementing certain measures
to upgrade the level of our activities.
*3: S ecurity guidelines of the Toyota Group, which conform to the Cyber Security
Framework of the National Institute of Standards and Technology (NIST CSF) andISO 27000 series of standards for information security management systems

Primary Activity Examples

Activities in fiscal 2023

Cybersecurity awareness website logo

Cybersecurity White Paper

70

Toyota Industries Report 2023

• Conducting an emergency security inspection on
consolidated subsidiaries and affiliates in and outside Japan• Formulating a three-year action plan for improving thesecurity level of affiliated companies in Japan and obtaining
their agreement for the implementation• Creating and issuing a Cybersecurity White Paper• Opening a cybersecurity awareness website• Checking the actual security levels of suppliers andrequesting corrective actions• Creating and issuing the Information Security Managers/
Administrators Guidebook• Incorporating security requirements into the quality control
rules for product development

Basic Perspective
Based on the Basic Policies for the Establishment of an Internal Control System in compliance with the Companies
Act, Toyota Industries is working to strengthen regulations and a structure to promote risk management. We regard thefollowing aspects as the basics of risk management and implement initiatives accordingly.
(1)	Incorporating measures to prevent and reduce potential risks into daily routines and following up on the progress of
implementation(2) Ensuring quick and precise actions to minimize the impact on business and society when a risk becomes apparent

Implementation Structure
Business divisions and other departments at the Head Officedevelop and promote annual action policies that integrate
measures to prevent and control risks related to safety,
quality, the environment, personnel, export transactions,disasters and information security. Progress is assessed
and followed up by each functional management entity suchas the CSR Committee and the Environmental Committee.
We created the position of risk supervisor within the CSR
Committee. By doing so, we promote activities to identify
priority risks from among risks concerning Toyota Industries
as a whole and make sure to implement measures at eachfunctional management entity as well as measures to counteremerging risks spanning multiple functions. In fiscal 2023, wenewly added geopolitical risk to our list of priority risks, andrelevant functional management entities are working together
to implement a range of initiatives.
At the same time, functional departments at the Head
Office such as those responsible for safety, quality and theenvironment formulate rules and regulations and create
manuals from a Group-wide perspective, encompassing
consolidated subsidiaries. By confirming and following up
on the progress through operational audits and workplaceinspections, they provide support for raising the level of risk
management, including the ability to respond to the identified
priority risks, at each business division and consolidated
subsidiary.
We have also formulated the Risk Response Manual,
which defines basic rules for risk management activities
under normal circumstances and for our initial response toan emergency when a risk becomes evident. The aim isto ensure quick reporting to top management, perform an
accurate assessment of the impact on society and businessactivities and minimize damage through appropriate actions.
The content of the manual is reviewed and revised as deemednecessary in response to changes in businesses and thesurrounding environment.

Risk Management Structure

Risk Map
Large

CSR Committee• Deliberate on anddetermine priority risks• Check and follow up on
the status of activities

Eight priority risks
Degree of impact

Implementation Structure

Risk supervisor

Office of the CSR Committee(Enterprise Risk and ComplianceManagement Office)Collaborate

Various functional meetings andcommittees, business divisions
and other departments,
consolidated subsidiaries in andoutside Japan

Small
Low

Frequency of occurrence/Risk level

High

Response to Possible Major Earthquake
We consider the impact of a major earthquake as one of
the most significant risks and have accordingly formulated abusiness continuity plan. Based on the three basic policies of
placing maximum priority on human life, placing top priority on
the recovery of local communities and ensuring the quickest

possible recovery, we are making Company-wide efforts inthree relevant areas, specifically, “precautionary, pre-disastermitigation,” “initial response to be followed immediately after
the disaster” and “restoration of production.”

71Corporate GovernanceTop Message

Value Creation

Promotion of ESG
Initiatives

Initiatives for Growth

Corporate andFinancial Information

Corporate GovernanceToyota Industries’ Activities Related to Intellectual Properties
Disaster Prevention Structure
We strive to reinforce our disaster prevention structure toenable a smooth transition from the initial response stage tothe production restoration stage.
The Disaster Prevention Response Headquarters,
consisting of representatives from the functional departments
at the Head Office, is responsible for collecting informationfrom plants and other relevant parties and making Companywide decisions based on the information collected.

Disaster Prevention Structure
Disaster Prevention Response Headquarters (Established in Kariya Plant)
Plant Response
Headquarters
Kariya Plant
Obu Plant
Kyowa Plant
Nagakusa Plant &Morioka Works
Takahama Plant
Hekinan Plant
Higashichita Plant
Higashiura Plant
Anjo Plant
Ishihama Plant

Key Facility
e-Lab (information
systems headquarters)
Remote Sites
Tokyo Office
Toyota L&F Customer
Center Tokyo
Toyota L&F Customer
Center Osaka
TMHG Training Center(Handa)Educational
Sites

AffiliatedCompanies

Company
dormitories
Company
resort facilities

Suppliers

Efforts to Cultivate Personnel to Engage in Disaster Prevention Activitiesn Training at Disaster Prevention Response
Headquarters
One important role assigned to the Disaster Prevention
Response Headquarters that oversees Company-wide
disaster response is to collect information on damages
to both inside and outside the company premises, swiftly
make decisions and disseminate these decisions throughout
Toyota Industries. In fiscal 2023, we again conducted training
remotely as in the previous fiscal year to collect damage
information of each plant and report the information to theDisaster Prevention Response Headquarters. At the samen Simultaneous All-Company Disaster
Prevention Training
In fiscal 2023, we extended the duration of our training
and conducted more effective, simultaneous all-Company
disaster prevention training.
The training at the Kariya Plant assumed stormy weather,and participants first evacuated the building to an outdoor
primary evacuation site, and after checking the safety ofn Individual Training at Each Plant
 ower Restoration DrillnP

Based on the procedures to restore power supplies, including
electricity and gas, which are essential in restoring production
activities, each plant conducts genchi genbutsu (go and see
for yourself) training on a periodic basis. Through the training,
we are identifying problems and making improvements to

Drill to use electrified vehicles as part of our emergency power source

time, we conducted a drill on using electrified vehicles (HEVs,
BEVs and FC buses) of each plant as part of our emergency
power source. We will continue to implement measures
to ensure that the headquarters can function under any
circumstances.
the building, went inside
to a secondary evacuationsite. We will continuously
conduct training to ensure
higher safety and security forour colleagues, customers
Drill to evacuate to an indoor secondary
evacuation site, assuming stormy weather
and business partners while
dealing with new issues found through the training.
step up our efforts to ensure quick restoration activities.

n System Restoration Drill

We conduct system restoration drills jointly with Toyota
Industries IT Solutions, Incorporated, a consolidated
subsidiary engaged in the development and operation of
information infrastructures and systems, and work to improve
our readiness for quick restoration.

Promoting Disaster Prevention at Home and Related Enlightenment Activities
Starting from fiscal 2017, we have been undertaking
enlightenment activities for employees and their families as ameasure to promote disaster prevention and avoid disasterinflicted damage at home. Specifically, we encourage themto take three actions: preventing the overturning of furnitureand securing an evacuation route; deciding how to contact
and where to meet with family members in a disaster; andstockpiling emergency goods, food and other necessities.
In fiscal 2023, we focused on disaster prevention measures
for when we are outside the home and worked to increase
disaster preparedness by creating and distributing material
on how to ensure safety when an earthquake occurs while
we are in a car or using public transportation.

Future Activities
In the face of frequent wind and water-related disasters andearthquakes in recent years, we believe it is important to beprepared to make a smooth initial response and maintain thefunction of the Disaster Prevention Response Headquarters

72

Toyota Industries Report 2023

no matter when or how much we sustain damage from adisaster. Based on this belief, we will continue our ongoing
efforts to increase the effectiveness of our disaster prevention
scheme.

Basic Perspective
One tenet of the Toyoda Precepts, which serves as our corporate creed, states “Always be studious and creative,
striving to stay ahead of the times.” Under this tenet, Toyota Industries proactively makes investments in research anddevelopment, protects and uses the resulting intellectual properties, such as inventions and know-how, and leverages
them in the strategies of each business. In addition, we make sure to acquire rights on intellectual properties both inand outside Japan and seek to prevent infringement of these rights while working to increase our corporate value byholding intellectual properties.

Implementation Structure and the Number of Patent Applications
Toyota Industries’ businesses span various fields fromtextile machinery to materials handling equipment andautomobile-related products. In accordance with businessstrategies tailored to the characteristics of each business, we
comprehensively analyze information on our own and othercompanies’ intellectual properties, covering our position in therespective markets and competitive relationships, and basedon the results, formulate an intellectual property strategy.
At our internal Invention Review Meeting between thetechnical department and IP department of each businessdivision and other occasions, we identify and encourage
inventions that pay attention to certain technological domains.
At the same time, we operate a system to survey risks ofinfringing other companies’ intellectual properties, report
the survey results to a meeting of the Review and ApprovalCommittee for Research and Development held during eachdevelopment phase and have the responsible executives
review and approve each development project. We also makejoint efforts with consolidated subsidiaries in and outside
Japan possessing the development function to acquire
intellectual properties and promote the sharing of information
to avoid risks of infringement, both from the viewpoint of
Toyota Industries Group as a whole.
Under this implementation structure, we filed some 1,000
patent applications in fiscal 2023. As of March 31, 2023,
Toyota Industries holds about 6,000 patents across the world.

Investment in Intellectual Capital toward Electrification and Automation
Toyota Industries has diverse technologies and know-how
cultivated in various businesses and provides a variety ofsolutions to customers. Leveraging this strength, we havepromoted research and development in the electrification
and automation fields, which will help realize a decarbonizedsociety and resolve labor shortages while actively
encouraging inventions in these fields.
Our patents related to electrification, such as those forbatteries, electronics products and electric compressors,

account for more than half the number of patents held by
Toyota Industries around the world (including those underreview) in the past five years (See Figure 1).
Additionally, the ratio of inventions related to automationin the Materials Handling Equipment Business has been
increasing year by year (See Figure 2). Going forward, we will
work to secure competitive superiority through intellectual
properties.

Figure 1. N umber and Ratio of Patents for Electrification-Related
Technologies Held by Toyota Industries

Figure 2. N umber and Ratio of Patent Applications for AutomationRelated Technologies (Japan)(Number)
6,000

56%

4,000

52%

54%

55%

2,000
0

(FY)

18

19
20
21
22
Number of patents held by the entire Toyota Industries
Ratio of patents for electrification-related technologies

54%(Ratio)60%(Number)
200

55%

150

50%

100

45%

50

40%

0

(Ratio)
75%

38%

50%

43%
36%

50%
25%

11%
(FY)

0%

17
18
19
20
21
Number of patent applications made by the entire Toyota Material Handling Japan
Ratio of applications related to automation

External Evaluations of Patents Held by Toyota Industries
Toyota Industries has been proactively applying for the
National Commendation for Invention sponsored by the Japan
Institute of Invention and Innovation and has received higherranking awards, including the Minister of Economy, Tradeand Industry Award. By receiving these awards, we makeour excellent technological capabilities known internally andexternally and increase the “inventive” motivation of employees
who work at the forefront of our development activities.

Recent Award Won by Toyota Industries
Details
2023 Invention Award
Patent No. 5201113
Back pressure control mechanism forscroll-type compressors73Corporate GovernanceTop Message

Value Creation

Promotion of ESG
Initiatives

Initiatives for Growth

Corporate andFinancial Information

Corporate GovernanceDirectors, Audit & Supervisory Board Members, Vice President,
Senior Executive Officers and Executive Officers(As of June 30, 2023)

Directors
Chairman

Tetsuro Toyoda

Audit & Supervisory Board Members
Apr. 1970 Joined Toyota Motor Sales Co., Ltd.
Feb. 1991 Vice President of Toyota Motor Sales, U.S.A.,
Inc.
Jun. 1991 Director of Toyota Industries Corporation
Jun. 1997 Managing Director
Jun. 1999 Senior Managing Director
Jun. 2002 Executive Vice President
Jun. 2005 President
Jun. 2013 Chairman (current)

Vice Chairman

Akira Onishi

Apr. 1981
Jun. 2005
Jun. 2006
Jun. 2008
Jun. 2010
Jun. 2013
Jun. 2023

Joined Toyota Industries Corporation
Director
Managing Officer
Senior Managing Officer
Senior Managing Director
President
Vice chairman (current)

Apr. 1982 Joined Toyota Industries Corporation
Full-Time Audit &Supervisory Board Member Jun. 2008 General Manager of TMHG Planning Dept.
Jan. 2009 General Manager of Corporate Planning Dept. of
Toru Inagawa
TMHG, Toyota Material Handling Company
Jan. 2013 General Manager of TMHG Management Dept.,
Toyota Material Handling Company
Jun. 2014 Managing Officer
Jun. 2016 Senior Managing Officer
Jun. 2019 Executive Officer
Jun. 2021 Audit & Supervisory Board Member (current)

Audit & Supervisory Board
Member(Outside, independent)

President

Koichi Ito

Apr. 1986
Jun. 1998
Jun. 2012
Jun. 2019
Jun. 2023

Akihisa Mizuno

Joined Marubeni Corporation
Joined Toyota Industries Corporation
Managing Officer
Senior Executive Officer
President (current)

Apr. 1978 Joined Chubu Electric Power Co., Inc. (Chubu
Electric Power)
Jun. 2008 Director, Senior Managing Executive Officer andGeneral Manager of Corporate Planning &Strategy Div. of Chubu Electric PowerJun. 2009 Representative Director and Executive Vice
President of Chubu Electric Power
General Manager of Corporate Planning &Strategy Div. and General Manager of AffiliatedBusiness Planning & Development Dept.
Jun. 2010 President & Director of Chubu Electric PowerJun. 2015 Chairman of the Board of Directors of Chubu
Electric PowerJun. 2016 Audit & Supervisory Board Member of Toyota
Industries Corporation (current)
Apr. 2020 Director & Advisor of Chubu Electric PowerJun. 2020 Advisor of Chubu Electric Power (current)

Apr. 1983 Joined Toyota Industries Corporation
Full-Time Audit &Supervisory Board Member Jun. 2016 General Manager of Accounting & Finance Dept.
Toru Watanabe Jan. 2017 Project General Manager of Accounting & Finance
Dept.
Jun. 2020 Audit & Supervisory Board Member (current)

Apr. 1977 Joined Toyota Motor Sales Co., Ltd.
Jun. 2005 Managing Officer of Toyota Motor Corporation(TMC)
Masanao Tomozoe Apr. 2011 Senior Managing Officer of TMC
Apr. 2011 Senior Vice President of Toyota Motor North
America, Inc.
Jun. 2012 President and Representative Director of Toyota
Motor Sales & Marketing Corporation
May 2015 Advisor of Central Japan International Airport
Company, Limited
Jun. 2015 President and CEO of Central Japan International
AirportJun. 2019 Audit & Supervisory Board Member of Toyota
Industries Corporation (current)
Jun. 2019 Advisor of Central Japan International Airport
Jun. 2021 Special Advisor of Central Japan International
Airport (current)
Audit & Supervisory Board
Member(Outside, independent)

Senior Executive Officers
Director(Outside, independent)

Shuzo Sumi

Director

Kazunari
Kumakura

Apr. 1970 Joined The Tokio Marine & Fire Insurance Co., Ltd.
(Tokio Marine)
Jun. 2000 Director and Chief Representative in London of
Tokio Marine
Jun. 2002 Managing Director of Tokio Marine
Oct. 2004 Managing Director of Tokio Marine & Nichido Fire
Insurance Co., Ltd. (Tokio Marine & Nichido)
Jun. 2005 Senior Managing Director of Tokio Marine &NichidoJun. 2007 President and Chief Executive Officer of Tokio
Marine & Nichido
Jun. 2007 President and Chief Executive Officer of Millea
Holdings, Inc. (now Tokio Marine Holdings Inc.
(Tokio Marine Holdings))
Jun. 2013 Chairman of the Board of Tokio Marine & Nichido
Jun. 2013 Chairman of the Board of Tokio Marine Holdings
Jun. 2014 Director of Toyota Industries Corporation (current)
Apr. 2016 Counselor of Tokio Marine & Nichido (current)
Jun. 2019 Retired as Chairman of the Board of Tokio Marine
Holdings

Director(Outside, independent)

Junichi Handa

Apr. 1979 Joined Toa Nenryo Kogyo K.K.
Feb. 2002 Representative Director of Booz Allen and Hamilton(Japan)Apr. 2005 CEO of Management Wisdom Partners, Japan Inc.
Apr. 2005 Project Researcher of Manufacturing Management
Research Center, the University of Tokyo
Jun. 2013 Corporate Officer and Head of HR, Takeda
Pharmaceutical Company Limited
Jun. 2015 Outside Director of Mitsui Sugar Co., Ltd. (now Mitsui
DM Sugar Holdings Co., Ltd.)
Jul. 2015 CEO of Management Wisdom Partners, Japan Inc.
(current)
Apr. 2016 Project professor of the Graduate School of
Economics (Management) and member of the Officeof the Global Leadership Program, the University ofTokyo
Apr. 2022 Lecturer of the Graduate School of Economics, theUniversity of Tokyo
Jun. 2022 Director of Toyota Industries Corporation (current)

Vice Presiden

Senior Executive Officers

Yojiro Mizuno

Masahiro Kawaguchi Hiroshi Matsumoto

Kazunari Masuoka

Toshihiko Shimizu

Brett Wood

Norio Wakabayashi

Hiroaki Matsuda

Sotaro Kumazawa

Ken Suito

Hisashi Ichijo

Hisanori Miyajima

Shinya Mizutani

Keitaro Hara

Hiroya Akatsuka

Yoichiro Yamazaki

Haruhiko Kimata

Hiroshi Kobayashi

Takehiko Oishi

Shigeru Sawaki

Tomoji Tarutani

Hiromichi Asao

Taeko Kojima

Hiroyuki Taniguchi

Toru Suzuki

Takashi Kubooka

Hiroyasu Takagi

Naomori Suzuki

Motoki Takahashi

Apr. 1985 Joined Toyota Motor Corporation (TMC)
Jun. 2016 Managing Officer of Toyota Industries
Corporation
Jun. 2019 Operating Officer
Mar. 2020 Retired from Operating Officer
Apr. 2020 Deputy Chief Officer, Purchasing Group of TMC
Jul. 2020 Chief Officer, Purchasing Group of TMC(current)
Jun. 2023 Director of Toyota Industries (current)

Executive
Officers

74

Toyota Industries Report 2023

75

Top Message

Value Creation

Promotion of ESG
Initiatives

Initiatives for Growth

Corporate andFinancial Information
Major Bases

Major Bases (Production, Regional Headquarters, etc.)

Link to thelist of bases(As of June 30, 2023)

EuropeJapan
26 Vanderlande

22 Toyota MaterialHandling Europe AB

President & CEO Ernesto Domínguez

Mjölby, Sweden
Business activities: European headquarters
for materials handling equipment production
and sales
Establishment: 1946
23 Toyota Material Handling

Manufacturing Sweden AB

Managing Director Kristian Björkman
Mjölby, Sweden
Business activities: Production ofmaterials handling equipment
Establishment: 1946
24 Toyota Material Handling

Manufacturing Italy S.p.A.

Fabio Giuliani
Bologna, Italy
Business activities: Production ofmaterials handling equipment
Establishment: 1942

Managing Director

Industries Holding B.V.

President & CEO Remo Brunschwiler
Veghel, The Netherlands
Business activities: Provision of logistics
solutions
Establishment: 1949

Klimakompressor GmbH

Bernsdorf, Germany
Business activities: Production of compressors
Establishment: 1998
28 Uster Ishihama Plant
Higashiura-cho, Chita-gun, Aichi
Main products: On-board batteries
Start of operations: 2022

Obu-shi, Aichi
Main products: Vehicles
Start of operations: 1967

CEO Davide Maccabruni

Uster, Switzerland
Business activities: Production, sales andafter-sales services of quality measurement
instruments for fiber, yarn and fabric
Establishment: 1875

Ancenis, France
Business activities: Production ofmaterials handling equipment
Establishment: 1995

 Obu Plant
Obu-shi, Aichi
Main products: Compressor parts
Start of operations: 1944

 Hekinan Plant
Hekinan-shi, Aichi
Main products: Engines for automobiles
and for use in industrial fields,
turbochargers
Start of operations: 1982

4 Nagakusa Plant
Technologies AG

Managing Director Philippe Mahé

9 Anjo Plant
Anjo-shi, Aichi
Main products: Electronic equipment,
products for fuel cell vehicles
Start of operations: 2007

3 Kyowa Plant
Obu-shi, Aichi
Main products: Automotive press dies,
production facilities, on-board batteries
Start of operations: 1953

President Yoichi Terao

Manufacturing France SAS

5 Takahama Plant

Takahama-shi, Aichi
Main products: Materials handlingequipment, materials handling systems
Start of operations: 1970

2

27 TD Deutsche

25 Toyota Material Handling

1 Kariya Plant
Kariya-shi, Aichi
Main products: Textile machinery,compressors
Start of operations: 1927

6

10

7 Higashichita Plant

Handa-shi, Aichi
Main products: Foundry parts,
diesel engines
Start of operations: 2000

12 Toyota Material HandlingNorth America, Inc.

8 Higashiura Plant


President & CEO Brett Wood

Columbus, Indiana, U.S.A.
Business activities: U.S. headquarters formaterials handling equipment production
and sales
Establishment: 2010

Higashiura-cho, Chita-gun, Aichi
Main products: Compressor parts
Start of operations: 2002

13 Toyota Materialholding GmbH

Handling , Inc.

3

4 
2

8
10 
1

7
5
9

6


CEO Philipp Hahn-Woernle

Stuttgart, Germany
Business activities: Integration of logistics systems
Establishment: 1889
22 
23


President & CEO Bill Finerty
Columbus, Indiana, U.S.A.
Business activities: Production and salesof materials handling equipment
Establishment: 2020

26
27

29 

28
 
24

25

18 
16 
15 

12 
13

19 
20

17

14

34 
37

32 
33


11


14 The Raymond Corporation


President & CEO Mike Field

Greene, New York, U.S.A.
Business activities: Production, sales andafter-sales services of materials handlingequipment
Establishment: 1922

36



30 31

Asia

35


India Private Limited

Compressor Co., Ltd.

President Yasushi Watanabe

Bengaluru, India
Business activities: Production of diesel
enginesEstablishment: 2015

Kunshan, Jiangsu, China
Business activities: Production of materials
handling equipment and automotive parts, etc.
Establishment: 1994

Yantai, Shandong, China
Business activities: Production ofcompressors
Establishment: 2012Managing Director Hisahiro Koketsu
Bengaluru, India
Business activities: Production, sales andafter-sales services of textile machinery
Establishment: 1995
Toyota Industries Report 2023

Co., Ltd.

34 Yantai Shougang TD AutomotivePresident Akihiro Oiwa

Machinery Pvt. Ltd.

76

32 Toyota Industry (Kunshan)

33 TD Automotive Compressor


Kunshan Co., Ltd.

President Akira Fujii
Kunshan, Jiangsu, China
Business activities: Production ofcompressors
Establishment: 2005

17 Toyota IndustriesCommercial Finance, Inc.

36 Tailift Material HandlingManaging Director Yasuo Shiino

31 Kirloskar Toyota TextileAgeo-shi, Saitama
Business activities: Production, sales
and after-sales services of aerial work
platforms
Establishment: 1962

The Americas

29 viastore intralogistics


30 Toyota Industries Engine

11 Aichi Corporation


President Toshiya Yamagishi

35 P.T. TD AutomotiveCompressor Indonesia

President Satoshi Kasuya
Bekasi, Indonesia
Business activities: Production ofcompressors
Establishment: 2011

Taiwan Co., Ltd.

President Amy Lin

Taichung, Taiwan
Business activities: Production, sales andafter-sales services of materials handlingequipment
Establishment: 201437 Global Power Co. Ltd.
(Tailift)

President Amy Lin

Qingdao, Shandong, China
Business activities: Production, sales andafter-sales services of materials handlingequipment
Establishment: 2000

21
President ＆ CEO Mark Taggart
Dallas, Texas, U.S.A.
Business activities: Sales financing formaterials handling equipment
Establishment: 201418 Michigan AutomotiveCompressor, Inc.

President Hisashi Kusaba
Parma, Michigan, U.S.A.
Business activities: Production ofcompressors
Establishment: 1989

15 Toyota Advanced Logistics
North America, Inc.

President & CEO Hitoshi Matsuoka

Indianapolis, Indiana, U.S.A.
Business activities: U.S. headquarters forlogistics solutions
Establishment: 201716 Bastian Solutions, LLC
President & CEO Aaron Jones

Indianapolis, Indiana, U.S.A.
Business activities: Integration oflogistic systems
Establishment: 1952
19 TD AutomotiveCompressor Georgia, LLC

President Haruyuki Ito

Pendergrass, Georgia, U.S.A.
Business activities: Production ofcompressors
Establishment: 2004
20 Toyota IndustriesCompressor Parts
America, Co.

President Haruyuki Ito
Pendergrass, Georgia, U.S.A.
Business activities: Production ofcompressor parts and electronics products
Establishment: 2012

21 Toyota Material Handling

Mercosur Indústria e Comércio
de Equipamentos Ltda

President Hiroshi Kuriyama
São Paulo, Brazil
Business activities: Production, sales
and after-sales services of materials
handling equipment
Establishment: 2004

77

Top Message

Value Creation

Promotion of ESG
Initiatives

Initiatives for Growth

Corporate andFinancial Information
Consolidated Financial and
Non-Financial Highlights

Consolidated Financial and Non-Financial Highlights
Net Sales¥

Operating Profit/Operating Profit Ratio

169.9 billion / 5.0%

3,379.8 billion¥(¥ Billion)(¥ Billion)

3,500

200

3,379.8

3,000
2,705.1

2,000

5.0

159.0

150

2,500

5.9

5.6

169.9

Profit before Income Taxes

Frequency Rate of Lost Workday Injuries(Non-Consolidated)

Participants of Subcontracting
Law-Related Seminars

CO2 Emissions (Consolidated)

262.9 billion

0.06

895 persons

730,788 t-CO¥(¥ Billion)

(%)
6
5
4

250

246.1

148
600

150

0.10

0.09

652
400

100
0.05

0
(FY)

2021

2022

0
(FY)

2023

2021

2022

Operating Profit

192.8 billion¥(¥ Billion)(¥ Billion)

200

150

100

134.8
120

150

144.4

400,000

2021

2022

0
(FY)

2023

2021

2022

(FY)

2023

2023

Ratio of Associates with Disabilities(Non-Consolidated)

Resource Input Volume (Consolidated)

99.9 billion

1.7 %

2.57 %

795,204 t

94.1

99.9

(%)

(%)

2.0

3.0
1.6

1.7

1.7

(t)

2.5

2.40

2.48

1.5

730,270

726,439

725,437

721,224600,000

60

100

795,204

800,000
2.57

2.0
1.0
60

2022

Ratio of Female Employees in Managerial
Positions (Non-Consolidated)

80

90

2021

Affiliated companies

Depreciation

91.0

113.3

136.7

(FY)

¥

(¥ Billion)
192.8

2023

Toyota Industries

144.4 billion

¥

2022

600,000

200,000

Operating Profit Ratio (right)

Investments in Tangible Assets

Profit

180.3

2021

730,788

802

114

0

0
(FY)

2023

641

200

50

0

93

757,114704,010

527

0.06

50

500

800

800

0.15

1,500
1,000

800,000
895

262.9

184.0

118.1

(t-CO2)

1,000

0.15

100

2

(Persons)
0.20

300

200

2,118.3(FY2023)

1.5

790,036

400,000

40
1.0

50
30

20

0

0

0.5

200,000
0.5
4,833

0
(FY)

2021

2022

2023

(FY)

2021

2022

0
(FY)

2023

2021

2022

2023

0
(FY)

2021

2022

2023

Note: The figures for profit attributable to owners of
the parent are presented.

Cash Dividends Per Share/
Dividend Payout Ratio

111.8 billion

190 / 30.6%(¥ Billion)

(¥)

120

200

29.3

30.2

30.6
190

94.4

150

88.9

Total Assets/Share of Equity Attributableto Owners of the Parent/Ratio of Share of
Equity Attributable to Owners of the Parent

¥

¥

100

(%)
35
30
25

170

80

7,821.1 billion / ¥3,837.4 billion / 49.1%¥(¥ Billion)

(%)

8,000

7,627.1

49.1

3,928.5
50

2,000

0
2022

Note: As of June 1 of each fiscal year

2023

2021

2022

3,236.0

3,837.4

0
(FY)

2021

Cash Dividends Per Share

2022

2023
Dividend Payout Ratio (right)

2021

2022

2023

Total Assets
Share of Equity Attributable to Owners of the Parent

Non-metal

28,500 persons

4,603 km

(Persons)(Persons)

3,000

30,0002,576

20,0001,500

15,000
1,139

1,000

28,50018,224

4,748

4,603

3,000

2,000

1,000

0
2022

4,447
4,000

21,326

5,000

2021

5,000

10,000

0
(FY)

3

(km3)

25,000

2,000

0
(FY)

2023
Metal

2,576 persons

500

2021

(FY)

2023

Water Consumption (Consolidated)

45

20

(FY)

2022

Number of Participants of Social
Contribution Activities (Consolidated)

55

4,000

40

0

2021

50

51.5

5,168

Participants of Age-Based Health Education(Non-Consolidated)

2,500

6,503.9100

7,821.1

49.8
6,000

150

60

(FY)

Note: As of June 1 of each fiscal year

Research and Development Expenses

111.8

5,215

0

2023

0
(FY)

2021

2022

2023

(FY)

2021

2022

2023

Note: Temporarily suspended from March 2020 to June
2021 for preventing the spread of COVID-19

Ratio of Share of Equity Attributable to Owners of the Parent (right)

78

Toyota Industries Report 2023

79

Top Message

Consolidated Eleven-Year Summary

Value Creation

Initiatives for Growth

Promotion of ESG
Initiatives

Corporate andFinancial Information
Consolidated Eleven-Year
Summary

Link to“Investors”
webpageToyota Industries Corporation
Years ended March 31

Millions of yen

International Financial Reporting
2022

2023

Standards (IFRS)
2021

Generally Accepted Accounting Principles in Japan (JGAAP)
2020

2019

2018

2017

2016

2015

2014

2013

For the YearNet sales

3,379,891

2,705,183

2,118,302

2,171,355

2,214,946

2,003,973

1,675,148

2,243,220

2,166,661

2,007,856

1,615,244

169,904

159,066

118,159

128,233

134,684

147,445

127,345

134,712

117,574

107,691

77,098

Profit before income taxes*

262,967

246,123

184,011

196,288202,225

209,827

181,986

185,398

170,827

138,133

86,836

Profit*192,861

180,306

136,700

145,881

152,748

168,180

131,398

183,036

115,263

91,705

53,119Investments in tangible assets*3

144,403

134,867

113,361

106,058

113,748

115,458

77,39375,438126,395

109,479

89,459Depreciation*

99,901

94,19091,09790,48885,63977,73873,25377,36670,78264,153

57,954

Research and development expenses

111,877

94,48488,90090,56088,807

77,647

69,52465,44047,78546,32639,057

Basic

621.17580.73440.28469.85491.97541.67420.78582.58367.06292.76170.36

Diluted

—

—

—

—

—

—

—

582.57366.99292.57170.35

12,359.66

12,653.04

10,422.64

7,854.87

7,986.59

8,223.82

7,125.37

6,481.97

7,500.16

5,640.08

4,719.66

190.00170.00150.00160.00155.00150.00125.00120.00110.00

85.00

55.00

Total assets

7,821,185

7,627,120

6,503,986

5,279,653

5,261,174

5,258,500

4,558,212

4,199,196

4,650,896

3,799,010

3,243,779

Share of equity attributable to owners of the parent

Operating profit
1

2

3

Per share of common stock (yen):
Earnings per share*2, *4

Share of equity attributable to owners of the parent
Cash dividends per share
At year-end

3,837,416

3,928,513

3,236,038

2,438,807

2,479,718

2,553,391

2,240,293

2,113,948

2,425,929

1,829,326

1,524,933

Capital stock

80,46280,46280,46280,46280,46280,46280,46280,46280,46280,46280,462

Number of shares outstanding (excluding treasury stock) (thousands)

310,479

310,479

310,481

310,483

310,485

310,487

310,489314,226

314,155

313,730

312,207

Cash flows
Net cash provided by operating activities

194,964

321,085

382,386

313,199

270,306

268,567

239,094

240,169

182,191

155,059

151,299

Net cash used in investing activities(427,642)(229,805)(404,164)(182,598)(395,000)(340,324)(86,925)(531,561)(160,769)(118,483)(274,210)

Net cash provided by (used in) financing activities

183,690(92,114)(105,477)( 7,094)

40,467

153,303789

130,923(8,918)

6,183

7,050

Cash and cash equivalents at end of year

202,731

247,085

238,248

358,144

239,140

323,830

243,685

92,399248,706

226,406

179,359

5.0

5.9

5.6

5.9

6.1

7.4

7.6

6.0

5.4

5.4

4.8

435,417

390,525

326,851

336,415

323,998

313,055

276,193369,857

248,854

216,175

155,234

5.0

5.0

4.8

5.9

6.1

7.0

6.1

8.3

5.6

5.7

4.1

Indices
Operating profit ratio (%)
EBITDA (millions of yen)*5
Return on equity (ROE) (%)*

6

Return on assets (ROA) (%)*

2.5

2.6

2.3

2.8

2.9

3.4

3.0

4.1

2.7

2.6

1.8

D/E ratio (%)*

44.3

35.4

41.6

54.9

52.3

45.7

43.6

43.7

32.0

39.9

45.4

Ratio of share of equity attributable to owners of the parent*9

49.1

51.5

49.8

46.2

47.1

48.6

49.1

48.5

50.7

46.6

45.4

74,88771,784

66,947

66,47864,641

61,152

52,62351,45852,52349,33347,4127

8

Number of employees (persons)*1: The figures prior to fiscal 2017 are ordinary income under JGAAP.
*2: Profit attributable to owners of the parent*3: Investments in tangible assets and depreciation apply to property, plant and equipment. They do not include materials handling equipment leased under operating leases.
*4: Earnings per share is computed on the average number of shares for each year.
*5: Profit before income taxes + Interest expenses – Interest and dividends income + Depreciation and amortization (including assets other than property, plant and equipment)*6: Profit attributable to owners of the parent / Average share of equity attributable to owners of the parent at the beginning and the end of the fiscal year
*7: Profit attributable to owners of the parent / Average total assets at the beginning and the end of the fiscal year
*8: Interest-bearing debt / (Share of equity attributable to owners of the parent – Subscription rights to shares)*9: (Share of equity attributable to owners of the parent – Subscription rights to shares) / Total assets
Notes: 1. Toyota Industries has adopted IFRS beginning from the end of fiscal 2017.
		
2. Operating profit in fiscal 2018 includes a one-time effect of ¥14.3 billion arising from changes in retirement benefit plans.

80

Toyota Industries Report 2023

81

Top Message

Value Creation

Promotion of ESG
Initiatives

Initiatives for Growth

Corporate andFinancial Information
Financial Statements

Consolidated Statement of Financial Position

Consolidated Statement of Profit or Loss
Millions of yen

Millions of yen
FY2022

FY2023

AssetsCurrent assets
Cash and cash equivalents

247,085

202,731

Time deposits with deposit terms of over three months

328,674

420,173

1,121,491

1,398,757

Trade receivables and other receivables

FY2022

FY2023

Net sales

2,705,183

3,379,891

Cost of sales(2,097,501)(2,623,707)

607,682

756,183(455,165)(576,761)

20,942

28,230Gross profit
Selling, general and administrative expenses
Other income

Other financial assets

12,672

5,399

Inventories

433,961524,385

Other expenses(14,391)(37,748)

Income tax receivables

28,906

26,262

Operating profit

159,066

169,904

Financial income

89,941

103,728

Financial expenses(7,282)(13,976)

Share of profit (loss) of investments accounted for by the equity method

4,397

3,311

246,123

262,967

Other current assets
Total current assets

83,034

99,3132,255,827

2,677,024

Non-current assets
Property, plant and equipment

1,134,074

1,237,540

Goodwill and intangible assets

395,882

468,368

Trade receivables and other receivables

2,334

1,459

Investments accounted for by the equity method

21,33723,987

3,734,9783,338,505

Net defined benefit assets

37,40827,887

Deferred tax assets

39,90837,992Other financial assets

Other non-current assets
Total non-current assets
Total assets

5,368

8,421

5,371,292

5,144,161

7,627,120

7,821,185

Profit before income taxes(60,773)(64,250)

185,350

198,716

Owners of the parent

180,306

192,861

Non-controlling interest

5,043

5,855

Income taxes
ProfitProfit attributable to:Earnings per share

Liabilities and Equity

Earnings per share—basic (yen)580.73621.17

Liabilities

Earnings per share—diluted (yen)580.73621.17

Current liabilities
Trade payables and other payables

745,553

807,474

Corporate bonds and loans

468,504

519,749

Other financial liabilities

82,90983,749Accrued income taxes

27,281

29,696

Provisions

15,41541,827

Other current liabilities

33,05834,615

1,372,721

1,517,112

Total current liabilities

Consolidated Statement of Comprehensive Income
Millions of yen

Non-current liabilities

FY2023

185,350

198,716

Corporate bonds and loans

922,011

1,179,390

Other financial liabilities

95,237

104,404

Net defined benefit liabilities

91,67781,422

Provisions

11,80911,025

1,078,641

952,960

Net changes in revaluation of FVTOCI financial assets

465,900(284,805)

33,054

39,467

Remeasurements of defined benefit plans

13,943576

2,232,430

2,368,671

3,605,152

3,885,784

Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities
EquityCapital stock

80,462

1(284,227)

56,074

1,126

2,931

1,514,657

1,652,648(59,339)(59,345)

2,290,343

2,062,404

3,928,513

3,837,416

93,454

97,985

Total equity

4,021,967

3,935,401

Total liabilities and equity

7,627,120

7,821,185

Toyota Industries Report 2023

19479,863

84,380Retained earnings

Non-controlling interests

Other comprehensive income of affiliates accounted for by the equity method
Total items not to be reclassified into profit or loss

Cash flow hedges

101,245

Other components of shareholders’ equity

Items not to be reclassified into profit or loss

Translation adjustments of foreign operations

102,388

Total share of equity attributable to owners of the parent

Other comprehensive income:80,462

Capital surplus
Treasury stock

ProfitItems that can be reclassified into profit or loss

Share of equity attributable to owners of the parent

82

FY2022

1,102

156

86,61059,162566,473(225,065)

751,823(26,348)

Owners of the parent

742,088(34,061)

Non-controlling interests

9,735

7,713

Other comprehensive income of affiliates accounted for by the equity method
Total items that can be reclassified into profit or loss
Total other comprehensive income
Comprehensive income
Total comprehensive income attributable to:83Top Message

Value Creation

Initiatives for Growth

Promotion of ESG
Initiatives

Corporate andFinancial Information
Financial Statements

Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flows
Millions of yen

Millions of yen

Share of equity attributable to owners of the parent
Other components of equity
Capital stock

Balance as of April 1, 2021

Capital surplus

Retained earnings

Treasury stock

FY2023

Profit before income taxes

246,123

262,967

Depreciation and amortization

223,737

257,762

2,368

2,634

Cash flows from operating activities:

Net changes inrevaluation of
FVTOCI financial
assetsRemeasurementsof defined benefit
plans

80,462

102,307

1,369,775(59,321)

1,779,685—

Profit——180,306———

Impairment losses(84,203)(95,424)

Interest expenses

4,868

10,111

Share of (profit) loss of investments accounted for by the equity method(4,397)(3,311)

Interest and dividends income

Other comprehensive income

—

—

—

—

466,017

13,896

Total comprehensive income——

180,306—

466,017

13,896

Repurchase of treasury stock

—

—

—

(18)

—

—

Disposal of treasury stock

—

0

—

0

—

—

Dividends——(49,676)———(Increase) decrease in inventories(110,613)(70,207)

Changes in ownership interest of subsidiaries

—

81

—

—

—

—

(Increase) decrease in trade receivables and other receivables(81,246)(225,489)

Changes in non-controlling interests as a result ofchange in scope of consolidation

—

—

—

—

—

—

Increase (decrease) in trade payables and other payables

93,537

29,619Reclassified into retained earnings——

14,252—(355)(13,896)

Other increases (decreases)

—

—

—

—

—

—

Others12,496

7,241

Subtotal

302,671

175,904
95,920Total transactions with owners—

81(35,424)

(18)

(355)

(13,896)

Balance as of March 31, 2022

80,462

102,388

1,514,657(59,339)

2,245,347—

Interest and dividends income received

84,921

Profit——192,861———Interest expenses paid

(4,999)(9,919)Other comprehensive income

—

—

—

—

(284,915)

685

Total comprehensive income——

192,861—(284,915)

685

Income taxes paid

(61,507)(66,940)

Repurchase of treasury stock

—

—

—

(5)

—

—

Net cash provided by operating activities

321,085

194,964

Disposal of treasury stock

—

0

—

0

—

—

Cash flows from investing activities:

Dividends——(55,886)———

Changes in ownership interest of subsidiaries

—

58

—

—

—

—

(237,371)(289,974)

Changes in non-controlling interests as a result ofchange in scope of consolidation

—

—

—

—

—

—

Proceeds from sales of property, plant and equipment

16,415

19,660Reclassified into retained earnings—

Payments for purchases of investment securities(1,406)(1,624)

651

541

—

1,015

—

(330)

(685)

Other increases (decreases)—(1,201)

—

—

—

—

Total transactions with owners—(1,143)(54,870)

(5)

(330)

(685)

Balance as of March 31, 2023

80,462

101,245

1,652,648(59,345)

1,960,101—

Share of equity attributable to owners of the parent
Other components of equity
Translation
adjustments ofCash flow hedges
foreign operations
Balance as of April 1, 2021
ProfitOther comprehensive income
Total comprehensive income
Repurchase of treasury stock
Disposal of treasury stock
Dividends
Changes in ownership interest of subsidiaries
Changes in non-controlling interests as a result ofchange in scope of consolidation
Reclassified into retained earnings
Other increases (decreases)
Total transactions with owners
Balance as of March 31, 2022
ProfitOther comprehensive income
Total comprehensive income
Repurchase of treasury stock
Disposal of treasury stock
Dividends
Changes in ownership interest of subsidiaries
Changes in non-controlling interests as a result ofchange in scope of consolidation
Reclassified into retained earnings
Other increases (decreases)
Total transactions with owners
Balance as of March 31, 2023

84

FY2022

Toyota Industries Report 2023

Non-controllinginterests

Total

Total

Total equity

Payments for purchases of property, plant and equipment

Proceeds from sales of investment securities
Payments for acquisition of subsidiaries’ stock resulting in change in scope of consolidation(14,905)(36,486)

Payments into time deposits(935,461)(919,474)

Proceeds from withdrawals of time deposits

961,239

831,815(529)(2,104)(18,438)(29,995)(229,805)(427,642)

Net increase (decrease) in short-term loans payable (within three months)

26,62259,426

Proceeds from short-term loans payable (over three months)

136,079

82,054

Repayments of short-term loans payable (over three months)(112,363)(158,332)

40,590112,121

Payments for transfer of businesses
Others(39,082)—
80,74080,740
—
—
—
—

2,211
—
1,126
1,126
—
—
—
—

1,742,814—
561,781561,781————

3,236,038
180,306
561,781742,088(18)
0(49,676)
81

86,511
5,043
4,692
9,735
—
—
(2,260)(1,066)

3,322,550
185,350
566,473
751,823(18)
0(51,937)
(984)

—

—

—

—

534

534

Net cash used in investing activities
Cash flows from financing activities:

Net increase (decrease) in commercial paper
Proceeds from long-term loans payable

233,551

354,876

Repayments of long-term loans payable(180,482)(130,782)

13,205

103,314

Repayments of corporate bonds(184,066)(165,036)

Repayments of lease obligations(16,453)(40,910)

(18)

(5)

Cash dividends paid

(49,676)(55,886)

Cash dividends paid to non-controlling interests(2,260)(2,674)

Others3,156

25,524(92,114)

183,690———
41,657—54,37454,374
—
—
—
—

—
—
—
3,338
—
2,931
2,931
—
—
—
—

(14,252)—(14,252)
2,290,343—(226,922)(226,922)
—
—
—
—

—
—
(49,613)
3,928,513
192,861(226,922)(34,061)(5)
0(55,886)
58——(2,792)93,454
5,855
1,857
7,713
—
—
(2,674)(508)——(52,405)
4,021,967
198,716(225,065)(26,348)(5)
0(58,560)
(449)

—

—

—

—

—

—

Translation adjustments of cash and cash equivalents

9,671

4,632

—
—
—
96,032

—
—
—
6,269

(1,015)—(1,015)2,062,404—(1,201)(57,035)
3,837,416——(3,182)
97,985—(1,201)(60,217)
3,935,401

Net increase (decrease) in cash and cash equivalents

8,837(44,353)

Cash and cash equivalents at beginning of period

238,248

247,085

Cash and cash equivalents at end of period

247,085

202,731

Proceeds from issuance of corporate bonds

Payments for repurchase of treasury stock

Net cash provided by (used in) financing activities

85Top Message

Value Creation

Initiatives for Growth

Promotion of ESG
Initiatives

Corporate andFinancial Information
Company andInvestor Information

Company and Investor Information(As of March 31, 2023)

Company Overview

Major Evaluations by Third Parties
Stock Exchange Listings

Corporate Head Office
TOYOTA INDUSTRIES CORPORATION
2-1, Toyoda-cho, Kariya-shi, Aichi, 448-8671, Japan
Telephone: +81-(0)566-22-2511
Facsimile: +81-(0)566-27-5650

Number of Shareholders*1: An international NGO running a project that requests
companies to disclose their strategies against climatechange and greenhouse gas emissions data

18,934*2: An international organization that evaluates thesustainability of companies

Independent Accountant

Date of Establishment

PricewaterhouseCoopers Aarata LLC
Otemachi Park Building 1-1-1 Otemachi, Chiyoda-ku, Tokyo,
100-0004, Japan

November 18, 1926

Common Stock
No par value
Authorized: 1,100,000,000 shares
Issued:325,840,640 shares

Transfer Agent
Special Account Management Institution(including treasury stock)

Share unit:

In February 2023, we received a Silver Medalfrom EcoVadis*2 in its corporate sustainability
survey.
(Seven consecutive years since fiscal 2017)

In December 2022, we were selected for the
A List, the highest rating, in surveys conductedby CDP*1 on climate change.

Tokyo and Nagoya (Ticker Code: 6201)

In November 2022, we were certified underthe Aichi Biodiversity Company Certification
Program established by the Aichi prefectural
government in 2022 for our efforts to conserve
biodiversity in a regional and sustainable
manner.

In August 2019, we received “Platinum Kurumin”
certification from the Ministry of Health, Labourand Welfare in recognition of our excellent efforts
concerning work-life balance

In February 2020, we received a “Family-Friendly
Company” award from the Aichi prefectural
government as an exemplary company providing
excellent initiatives to support work-life balance.

In November 2019, we received an “Excellent
Company” award from the Aichi prefectural
government under its “Female-Friendly
Company” certification program as an
exemplary company proactively promoting
the empowerment of women.

Mitsubishi UFJ Trust and Banking Corporation
1-4-5, Marunouchi, Chiyoda-ku, Tokyo, 100-8212, Japan

100 shares

Capital Stock80,462 million yen

Major Shareholders
Number of Shares Held(Thousands)

Percentage of Total Shares in Issue(Except for Treasury Stock) (%)

Toyota Motor Corporation

76,60024.67

DENSO Corporation

29,647

9.55

The Master Trust Bank of Japan, Ltd. (Trust Account)

24,706

7.96

TOYOTA FUDOSAN CO., LTD.

16,291

5.25

Toyota Tsusho Corporation

15,294

4.93

Custody Bank of Japan, Ltd. (Trust Account)

10,178

3.28

Nippon Life Insurance Company

6,580

2.12

AISIN Corporation

6,578

2.12

Aioi Nissay Dowa Insurance Co., Ltd.

4,903

1.58

State Street Bank and Trust Company 505001

3,944

1.27

Name

Common Stock Price and Trading Volume
Stock price of Toyota Industries (left)

TOPIX (right)(¥)(Point)12,000

4,000

9,000

3,000

6,000

2,000

3,000

1,000

Note: Toyota Industries Corporation also holds 15,360 thousand shares of treasury stock but is excluded from the above list.

Distribution of Shares

00Treasury stock

4.7%

Japanese brokerages

1.2%

Individuals, etc.

5.8%Japanesefinancial
institutions

18.3%

Trading volume of Toyota Industries stock (left)(Thousand shares)

20,000Japanese
corporate
entities

48.1%

15,00010,0005,000

Foreign corporate entities and others

21.9%

86

Toyota Industries Report 2023

0
Apr. 2018

Apr. 2019

Apr. 2020

Apr. 2021

Apr. 2022

Apr. 2023

87