Message from the 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.
In fiscal 2020 (ended March 31, 2020), the global
economy was solid overall despite such uncertainties as
the deceleration of the Chinese economy arising fromU.S.-China trade frictions as well as geopolitical risks.
However, during the few months leading to the fiscal
year-end, it went on a dramatic downward spiral dueto the spread of COVID-19. Meanwhile, the Japanese
economy deteriorated during the second half of fiscal
2020. In addition to the factors mentioned above, theprimary reasons for the downturn included anemic
consumer spending that accompanied the consumption
tax hike and natural disasters.
Net sales decreased in fiscal 2020 mainly as a resultof declines in sales of materials handling equipment
and car air-conditioning compressors as well as thenegative impact of exchange rate fluctuations. Thesefactors offset sales increases for the new RAV4 andTNGA gasoline engines. In terms of overall profit,
despite sales efforts and cost reduction activities
throughout the Toyota Industries Group, we recorded
a decrease in profits due mainly to the impacts of theCOVID-19 pandemic, Typhoon Hagibis and exchange
rate fluctuations.
Although both net sales and profits fell slightly shortof initial plans, Toyota Industries increased the yearend cash dividend by ¥5.0 over the previous fiscal
year to ¥80.0 as planned. Including the interim cash
dividend, we paid annual cash dividends per share of¥160.0. Given the impact of the COVID-19 pandemic
and in consideration of the needs of our shareholders,we made an exception this year and decided to pay
the year-end cash dividend early. This was basedon a resolution by the Board of Directors instead ofbasing our decision on the resolution of the General
Shareholders’ Meetings as we usually do.
With regard to the future economic outlook,
uncertainties continue to abound including concerns
over the prolonged spread of COVID-19, U.S.-China
trade frictions and geopolitical risks. As such, theenvironment surrounding Toyota Industries’ main
businesses, namely Automobile and Materials Handling
Equipment, preclude optimism.
Under these circumstances, Toyota Industries isfurther strengthening its business foundation and isaddressing key management issues to raise corporate
value by leveraging the Group’s collective strengths.

To quickly respond to drastic changes in thebusiness environment, we will strengthen risk
management and carry out thorough cost improvement
activities to transform ourselves into a more muscularand resilient management platform. In addition, we will
strive to improve productivity in back-office operations
through work style reforms and reduced fixed costs.
Our businesses will become more competitive
and aim for further growth by promoting innovativetechnology and product development while also
proactively embracing digital technologies and openinnovation. To support such business development, wewill continue our efforts to create an organization andworkplace environment that enables diverse humanresources to fully demonstrate their abilities and develop
personnel who learn and think on their own and areempowered to quickly take initiative.
In other areas, Toyota Industries will create aworkplace environment that places a top priority on
safety; thoroughly enforce compliance, includingobservance of laws and regulations; and proactively
participate in social contribution activities. By carryingout these initiatives, we aim to earn the overall trustof society and grow harmoniously with society. With
regard to protection of the global environment, we will
undertake Group-wide initiatives in seeking to realize “azero CO2 emissions society in 2050.”
Through these initiatives, we aim for sustainablegrowth of each business and strive to support industries
and social foundations around the world and contributeto making the earth a better place to live, enriched
lifestyles and a compassionate society as described in
Toyota Industries’ Vision 2030.
In closing, we would like to sincerely ask for yourcontinued understanding and support.
July 2020

Tetsuro Toyoda
Chairman

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

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