Message from the
Chairman and President
Firstly, we would like to extend our sincere appreciation foryour continued support of Toyota Industries Corporationand the Toyota Industries Group.
In fiscal 2018 (ended March 31, 2018), the global
economy remained strong overall on the back of anexpansion in consumer spending and exports in Europe
and the United States despite such uncertainties as theslowing economic growth in China and geopolitical risks.
The Japanese economy progressed favorably due mainly
to an increase in exports as well as a recovery in domestic
demand including consumer spending and capital
investment.
In this business environment, Toyota Industries
Corporation and its Group companies (“Toyota Industries”)
undertook efforts to ensure customer trust through adedication to quality first as well as to expand sales by
responding flexibly to market trends. As a result, in fiscal
2018 Toyota Industries posted an increase in net sales.
The increase was attributable mainly to higher unit sales ofsuch products as materials handling equipment and car
air-conditioning compressors as well as to newly
consolidating U.S.-based Bastian Solutions LLC andNetherlands-based Vanderlande Industries Holding B.V.,
both of which are engaged in the logistics solutions
business. In terms of overall profit, despite increases in raw
materials costs and labor costs, Toyota Industries recorded
an increase in profit due mainly to vigorous sales efforts,
cost reduction activities throughout the Toyota Industries
Group, the positive impact of exchange rate fluctuations
and changes in retirement benefit plans.
With regard to the future economic outlook, the global
economy is expected to continue to grow. However,uncertainties surrounding the business environmentpreclude optimism, as the impact of trade frictions arisingfrom protectionist policies in the United States, the future
trend in financial policies in respective countries andgeopolitical risks require close monitoring.
Under these circumstances, Toyota Industries is further
strengthening its business foundation and addressing key
management issues to raise corporate value by leveraging
the Group’s comprehensive strengths.
As immediate tasks, we will endeavor to bolster ourmanagement platform to respond quickly to drasticchanges in the business environment. Specifically, basedon our quality first approach, we aim to build a stronger
production foundation by maintaining and improving
productivity on a global basis. Furthermore, we will strive tobuild a lean corporate structure by thoroughly eliminating
waste, by pursuing excellence in quality, cost andproduct lead time (the period from production to delivery)

throughout the supply chain and by improving productivity
in administrative functions. At the same time, we intend
to strengthen risk management in order to quickly andappropriately respond to changes in world affairs.
Besides these approaches, we will focus on the timely
launch of appealing products demanded by customers
worldwide and improve earnings power by expanding
the value chain and strengthening solution proposal
capabilities. We will also proactively utilize the Internet ofThings (IoT), artificial intelligence (AI) and other cutting-edge
technologies. Through such measures, we aim to raise thecompetitiveness of our businesses. In addition, we plan
to develop our next growth pillars by promoting strategic
technology and product development while also embracing
open innovation.
To support such business development, we willcontinue our efforts to create an organization andworkplace environment that enables diverse humanresources to fully demonstrate their abilities and develop
personnel who can play active roles in the global arena.
In other areas, Toyota Industries will create a workplaceenvironment that places top priority on safety; thoroughly
enforce compliance, including observance of laws andregulations; and proactively participate in social contribution
activities. By carrying out these initiatives, we aim tomeet the overall trust of society and grow harmoniouslywith society. With regard to protection of the global
environment, we will undertake Group-wide initiatives inseeking to realize “a zero CO2 emissions society in 2050.”
Through these initiatives, we aim for sustainable growthof each business and strive to support industries andsocial foundations around the world and contribute to anenriched lifestyle and comfortable society as described in
Toyota Industries’ Vision 2020 plan.
In closing, we would like to sincerely ask for your continued
understanding and support.
July 2018

Tetsuro Toyoda
ChairmanAkira Onishi
President
Chairman Tetsuro Toyoda (left)/President Akira Onishi (right)

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