Toyota Industries Report 2010
Year ended March 31, 2010

Contents

Financial Highlights		 1
Message from the Chairman and President		 2-5Business Activities		 6-17

Corporate Social Responsibility

Outline of Businesses		 6-7

Corporate Philosophy

Automobile		 8-11

30-37

(Toyoda Precepts, Basic Philosophy and CSR Policy) 30-31

Vehicle		 8

Corporate Governance

32-33

Engine		 9

Responsibility to Our Customers

34

Car Air-Conditioning Compressor

10

Responsibility to Our Associates

35

Car Electronics

11

Responsibility to Our Business Partners

36

Materials Handling Equipment

12-15

Responsibility to Our Shareholders and Investors

36-37

Logistics

16

Responsibility to Our Local Communities

37

Textile Machinery

17
Major Operations

38-39

Environmental Initiatives

18-29

An Interview with the Chief Environmental Administrator

18-19

Special Feature (Curbing Global Warming)

20-21

Global Environmental Commitment

22

Environmental Management

22-23

Basic Perspective of
the Fourth Environmental Action Plan

24

Board of Directors, Corporate Auditors
and Managing Officers

40

Financial Section

41-77

Financial Section

41

Management’s Discussion and Analysis of

Curbing Global Warming

24

Resource Utilization

25

Consolidated Balance Sheets

48-49

Reduction in Environmental Risk

25

Consolidated Statements of Income

50

Environmental Communication

26

Consolidated Statements of Changes in Net Assets

51

Forest Conservation Activities

26

Consolidated Statements of Cash Flows

52

Notes to Consolidated Financial Statements

53-74

Report of Independent Auditors

75

Investor Information

77

Environmental Data
Targets and Resultsof the Fourth Environmental Action Plan

27

Business Activities and Their Environmental Impact

28

Trends in Environmental Performance

28

Soil and Groundwater Pollution Countermeasures

29

Environmental Accounting/On-Site Verification

29

Financial Condition and Results of Operations

42-47

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 the words “expect,” “anticipate,” “estimate,” “forecast,”“plan” and similar expressions is intended to identify such forward-looking statements. Projections and forward-looking statements are based on the current expectations andestimates of the Toyota Industries Group regarding its plans, outlook, strategies and results for the future. All such projections and forward-looking 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 or otherwise. Therefore, itis advised that you should not rely solely upon these projections and forward-looking statements in making 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 a small number of customers, (2) product development 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 allianceswith other companies, (9) exchange rate fluctuations, (10) share price fluctuations, (11) effects of disasters, power blackouts and other incidents, (12) latent risks associated withinternational activities and (13) retirement benefit liabilities.

Financial Highlights
Toyota Industries Corporation
Years ended March 31% change

Millions of yen

2006

2007

2008

2009

2010

2010 vs 2009

1,505,955

1,878,398

2,000,536

1,584,252

1,377,769(13.0)%

Operating income (loss)

64,04089,95496,853(6,621)

22,002−

Ordinary income

80,635

108,484

126,488

14,34331,756

121.4

Net income (loss)

47,07759,46880,460(32,767)(26,273)−

Research and development expenses

31,16634,54836,75033,646

26,826(20.3)Cash dividends per share (yen)

38.00

50.00

60.00

40.00

30.00

(25.0)

Total assets

3,245,341

3,585,857

2,965,585

2,327,432

2,589,246

11.2%

Total net assets

1,611,227

1,810,483

1,453,996

977,670

1,104,929

13.0

Number of employees

32,97736,09639,52839,91638,903(2.5)

Net Sales

Operating Income (Loss)

For the YearNet sales

At Year-End

Net Income (Loss)(¥ Billion)(¥ Billion)(¥ Billion)

2,500

100

100

80

80

2,000

60

60

1,500

40
40
20

1,000
20
500

0

(FY)

0

0

06

07

08

09

10

-20

(FY)

-20

06

07

08

09

10

-40

(FY)

Total Assets

Total Net Assets(¥ Billion)(¥ Billion)

(¥)

4,000

2,000

60

3,000

1,500

06

07

08

09

10

Cash Dividends per Share

50
40
2,000

1,000

1,000

500

30
20
10

0

(FY)

06

07

08

09

10

0

(FY)

06

07

08

09

10

0

(FY)

06

07

08

09

10

Toyota Industries Report 2010



Tadashi Ishikawa

Tetsuro Toyoda

ChairmanPresident

Message from the Chairman and President
Business Results for Fiscal 2010

systematically and quickly implementing emergency profit

Although various countries’ economic stimulus measures

improvement activities.

led to a recovery trend in China and other Asian countries,
a gradual upswing in the U.S. economy and bottoming out

sales of ¥1,377.7 billion, a decrease of ¥206.5 billion, dueof European economies, the global economy in general

in a large part to the sluggish materials handling equipment

remained sluggish throughout the fiscal year ended March 31,

market. On the other hand, operating income was ¥22.0

2010 (fiscal 2010). In Japan, the economy steadily trended

billion, a turnaround from an operating loss recorded in the

toward recovery, but still remained weak overall due mainly toprevious fiscal year, while ordinary income increased ¥17.4

declining consumer prices and a high unemployment rate.

billion to ¥31.7 billion. However, Toyota Industries recorded

In response to a rapidly deteriorating operatingIn fiscal 2010, Toyota Industries posted consolidated net

a net loss of ¥26.2 billion as a result of posting a loss

environment since autumn 2008, the Toyota Industries

arising from business restructuring of the Materials HandlingGroup worked to thoroughly reduce fixed costs by

Equipment Segment as an extraordinary loss.

Toyota Industries Report 2010

Initiatives for the Coming Years

develop products and services matched to respective local

We expect the global economy to continue on a gradualneeds as well as create optimum value chains for each market.

recovery path in fiscal 2011, however, uncertainties remain
with regard to persistent concerns over deteriorating financial
and employment situations, the impact of the discontinuation

Strategies for Respective Businessesof car replacement incentive measures and rising prices of

Anticipating a prolonged stagnation in the global materials

raw materials such as iron and crude oil. As a result, thehandling equipment market, we have pursued structuraloperating environment is expected to remain challenging.

downsizing at Materials Handling Equipment Segment sites inAmid this difficult business climate, the Toyota Industries

and outside Japan so that we can secure profits even whenGroup will band together to tackle various management

annual sales remain at 100,000 units, which is approximately

issues to establish a stronger business foundation and further

50% below previous peak levels. In the meantime, signs of anraise corporate value.

upswing started to become evident in the materials handling

We believe the most urgent task at hand is to continue

equipment market, which for a time seemed dim, evenreforming the business and cost structures to strengthen thethough differences remain among regions. By spotting any

earnings foundation. Without loosening the reins, the entire

new developments, we will leverage our strengths through a

Toyota Industries Group is determined to continue to pushfull lineup of TOYOTA-, BT-, RAYMOND- and CESAB-brandemergency profit improvement activities while launchingproducts and proactively engage in sales activities to improveforward-looking structural reforms. Specifically, we will maintainbusiness performance.

the streamlined structure through the reduction of fixed costs

At the same time, we will aim for product planning closelyand enhancement of our competitiveness by strengtheningaligned with local customer needs and further accelerate thecost planning activities for each product category.

development of key components to ensure stronger productAmid an uncertain market environment, signs of recovery

competitiveness. Based on a hybrid lift truck introduced toare becoming visible in certain sectors. By quickly identifying

the market in December 2009, we will expand our hybrid

such changes and turning them into business opportunities,

lineup to midsize and larger models in our efforts to be thewe will implement various measures geared toward sales

frontrunner in environmental technologies as well.

expansion.
In the medium to long term, our foremost focus remains

In the respective businesses of the Automobile Segment,
we will work to create factories and foundations resistanton quality. Addressing environmental and safety concerns as

to production volume fluctuations while maintaining

well as enhancing our international competitiveness will also

a streamlined production structure in order to secure

be equally imperative. Keeping these in mind, we will strive

profitability.

to develop products and cutting-edge technologies that areclosely aligned with customer perspectives.
Specific initiatives include refining element technologies

In emerging country markets, we will strive to enhancesales of car air-conditioning compressors in China, which
has now become the world’s largest market for automobiles.

that will contribute to electrification, lighter weights andSpecifically, we will expand our market share by targeting

energy savings based on 3Es (energy, environmental

higher-end models for which growth is anticipated in theprotection and ecological thinking). By employing these

China market and by leveraging our advanced technologies.

element technologies in new automobile and materials

In the area of environmental technologies, developing

handling equipment products, our mainstay businesses, we

power electronics products and electric compressors

aim for further business expansion.

continues to be a priority in responding to the rapidly growing

Concurrently, in emerging countries where economies are
expected to grow, we will accelerate our efforts to plan andhybrid vehicle market. By further enhancing the functionality
and lineup of electric compressors, we aim to expand sales

Toyota Industries Report 2010



Tetsuro Toyoda
President

to automakers in Europe and the United States in addition

to refine these technologies and contribute to reducing

to Toyota Motor Corporation and ensure we will be wellenvironmental loads.

positioned in the growing hybrid vehicle market. Moreover, inthe plug-in hybrid vehicle (PHV) and electric vehicle (EV) field,

Environmental Conservation

Toyota Industries is strengthening initiatives for future business

Preserving the global environment for future generations is

expansion. We will work to make the onboard charger fitted

now a universally important theme. As laid out in our Global

in Toyota’s Prius Plug-in Hybrid smaller and more efficient toEnvironmental Commitment, we believe that it is essential

ensure expanded sales. In addition, we intend to contributeto develop technologies that enable the compatibility ofto the establishment of a charging infrastructure that supports

environmental conservation and economic growth in order

greater use of PHVs and EVs by continuously improving theto achieve a sustainable society. As a manufacturer, we arecharging stand we introduced to the market in 2009 andtackling head-on environmental and energy issues such as

developing a system for comprehensively managing usage

reducing the emission of greenhouse gases. Specifically,

data of charging stations and EVs.

we are committed to developing environmentally soundIn addition to the accumulation of technologies related to

products and reducing environmental load in the area

the entire automobile, Toyota Industries possesses numerousof manufacturing, from the construction of plants andelement technologies that have the potential to contribute toestablishment of production lines to actual production. Setting

3E fields, including technologies and know-how cultivated ineven more ambitious targets, the entire Toyota Industries

the development of electric lift trucks. Based on collaborative

Group is determined to take a proactive approach toward

efforts among business divisions, we will work constantly

environmental conservation activities.

Toyota Industries Report 2010

Commitment to Quality

participant but also by the foundation rooted in teamwork

Quality is the lifeline of any manufacturer. Needless to say, it isand successful passing down of technical skills we havean extremely important matter for Toyota Industries as well.

accumulated to date.

We have always committed ourselves to comprehensive
quality assurance, with everybody involved in activities fromWe will put more efforts into developing human resources
who will enable our next leap forward.

day-to-day quality management to quality inspection by top
management. In the area of product development, we ensure

At a time when technologies and social structures are

quality by utilizing a design review system in which respective

changing at an unprecedented speed, we must workbusiness division heads thoroughly examine and confirm theto strengthen our management platform in terms of thelevel of quality at each principal stage, from product planningenvironment, quality, safety and compliance. Staying true toto customer satisfaction assessment, before productour Basic Philosophy and the Toyoda Precepts, in which thedevelopment proceeds to the next stage. Moreover, in March

spirit of founder Sakichi Toyoda is enshrined, we will continue

2010 we carried out comprehensive quality inspections toto commit ourselves to a Customer First philosophy andensure a structure that will never produce defects relating

respond to confidence from society in our efforts to sincerely

to safety. These inspections focused on whether we

fulfill our social responsibilities and achieve sustainable growth

respond quickly enough in handling defects and on clarifying

in harmony with society.

procedures and standards for dealing with defects. The

In closing, we truly appreciate the loyal support of all our

results revealed we were not overlooking any major quality

stakeholders, including shareholders, customers, businessissues.

partners, local communities and employees and their families,

Based on our Customer First philosophy, we will strive

and ask for their continued guidance and understanding.

to continually improve quality by building in quality withineach process at product planning, design, procurement,
production, quality assurance and service departments

July 2010

as well as promoting close cooperation among thesedepartments. Through these activities, we will continue toprovide products and services that customers can use with

Tadashi Ishikawa
Chairmanreassurance and thus enhance confidence from society.

Human Resources Development
To achieve sustainable growth amid a dramatically changing
business environment, companies must develop human

Tetsuro Toyoda
President

resources and create an organization that can prevail against
fierce competition. We are committed to nurturing personnel
capable of learning, thinking and acting independently and tofostering a vibrant work climate that enables the capabilities
of employees and organizations to be utilized to the fullest.
An example of such achievements includes two of
our employees winning a gold medal in the “lathe” and“structural ironsmith” categories at the 47th National Skills
Competition held in October 2009. This accomplishment wasmade possible not only by the tremendous efforts of eachToyota Industries Report 2010

Business Activities

Outline of Businesses
Automobile
From vehicle assembly to parts production, the Automobile Segment engages in a wide variety of car-related businesses.
Leveraging synergies among its business divisions in development and production, the Automobile Segment accounts
for 56.5% of consolidated net sales and represents the largest business segment of Toyota Industries.

VehicleNet Sales

Main Products• Vitz (Yaris outside Japan)• RAV4• Mark X ZiOWith its strengths as an industry leader in quality, costand delivery, the Vehicle Business produces compact
to midsize automobiles.

(¥ Billion)

1,000
800
600

Engine400

The Engine Business produces both diesel andgasoline engines. We co-develop diesel engineswith Toyota Motor Corporation and possess acomprehensive structure ranging from planning anddevelopment to production.

Main Products• Diesel engines (KD, AD, VD)• Gasoline engines (AR, AZ, MZ)

200
0

(FY)

08

09

10

Operating Income (Loss)(¥ Billion)

Car Air-Conditioning Compressor

60

Toyota Industries’ car air-conditioning compressors
are highly acclaimed in terms of their reliability at highoperating speeds and quiet operation in addition tosuch excellent environmental-related performancefeatures as fuel efficiency, compactness and weight
reduction. The Car Air-Conditioning Compressor
Business captures the top global share in unit sales*.

Main Products• Fixed-displacement type
• Variable-displacement type
• Electric type

40
20
0
-20

(FY)

08

09

10

Percentage of Net Sales* Survey by Toyota Industries Corporation

Car Electronics
Main Products• PCU direct-cooling device• DC-DC converters• DC-AC inverters

Utilizing power electronics circuitry technology andelectric drive system development capabilities, theCar Electronics Business develops and produces
electronics products for hybrid vehicles and otherelectric vehicles.

56.5%

Materials Handling Equipment
The Materials Handling Equipment Segment develops, produces, sells and provides services for a broad range of
products, from industrial vehicles centered around a full lineup of lift trucks (0.5- to 43-ton load capacities) to warehouseequipment such as systems for transportation, storage and retrieval of goods. Lift trucks, a mainstay product of thissegment, are delivered to customers around the world under the TOYOTA, BT, RAYMOND and CESAB brands throughToyota Material Handling Group.

Main Products• Lift trucks• Warehouse trucks• Aerial work platforms• Automated storage and retrieval systems• Automatic guided vehicles

Net Sales

Operating Income (Loss)(¥ Billion)(¥ Billion)

800

40

Toyota Industries Report 2010

30

600

20
400

31.3%

10

200

0

0

-10

(FY)



Percentage of Net Sales

08

09

10

(FY)

08

09

10

Business Activities

Logistics
The Logistics Segment is composed of three business pillars: planning, design and operation of distribution centers;
land transportation services; and high value-added services such as cash collection and delivery and cash proceeds
management services and data storage and management services.
Main Services• Logistics planning, operation of
distribution centers• Land transportation services• Cash collection and delivery and cash
proceeds management services• Data storage, management, collection
and delivery services

Net Sales

Operating Income(¥ Billion)(¥ Billion)

6120

Percentage of Net Sales
7.9%

100
4

80
60

2

40
20
0

08

(FY)

09

10

0

(FY)

08

09

10

Textile Machinery
With a history dating back to the invention of an automatic loom by Toyota Industries founder Sakichi Toyoda, theTextile Machinery Business is a world leader in the textile industry backed by an integrated structure that encompasses
development, production, sales and service of weaving and spinning machines.

Main Products• Air-jet looms• High-speed ring spinning frames• High-speed roving frames

Net Sales

Operating Income (Loss)(¥ Billion)(¥ Billion)

80

5

60

Percentage of Net Sales
1.5%

2.5

40
0

20
0

(FY)

08

09

10

-2.5

(FY)

08

09

10

OthersThe Others Segment includes consolidated subsidiaries that provide services to Toyota Industries as well as TIBC
Corporation, a joint venture with IBIDEN CO., LTD., that produces semiconductor package substrates for PC
microprocessor units.

Main Products• Semiconductor package substrates

Net Sales

Operating Income (Loss)(¥ Billion)(¥ Billion)

80

8

60

6

2

20

(FY)

2.8%

4

40

0

Percentage of Net Sales

0

08

09

10

-2

(FY)

08

09

10

Toyota Industries Report 2010

Business Activities

VehicleExpanding the Scope of Business Using Technologies
for Realizing Lighter Weights

Business Overview in Fiscal 2010

Contributing to Improved QCD for Toyota Cars

In the automobile industry, the market headed toward amild recovery thanks to government measures such as car
replacement incentives. Under these conditions, despite
lower sales of the Vitz (Yaris outside Japan) and the Mark X
ZiO, higher sales of the RAV4 supported an increase of 8,000
units, or 3%, in unit sales to 291,000 vehicles and an increaseof ¥20.6 billion, or 5%, in net sales to ¥398.7 billion.
Despite an increase in production volume in the second
half of fiscal 2010, we strove to secure profitability by
maintaining a leaner structure.

At its production plants, under the Toyota Production System(TPS), Toyota Industries’ Vehicle Business maintains thehighest level of quality, cost and delivery (QCD) amongautomobile body manufacturers in the Toyota Group by
making continuous improvements. We actively participate
in the development of new Toyota cars, focusing mainly on
the vehicle models produced by Toyota Industries. Thesebusiness activities have continually earned us acclaim,
and in 2009 the Vehicle Business won the Superior Quality
Performance Award in the Auto Body Category and the
Excellent Value Improvement Award.
Looking ahead, while further enhancing QCD, we willdraw on our strengths such as the ability to quickly start
up production and a flexible production structure in terms
of production volume and vehicle models. Through these
initiatives, we will continue contributing to the development
and production of Toyota vehicles.

Vehicle Production(Thousand units)

400
300
200

Contributing to Lightweight Vehicles throughDevelopment of Plastic Glazing

100
0

(FY)

06

07

08

09

10

Cumulative Production of 8 Million Units
In January 2010, Toyota Industries’ cumulative vehicle
production, which is carried out under consignment fromToyota Motor Corporation (TMC), reached 8 million units.
Since commencing production in May 1967, we haveearned high acclaim as an automobile body manufacturer
specializing in compact cars. In September 2007, we started
production of the Mark X ZiO, thereby expanding our role asa manufacturer capable of producing midsize cars.

Responding to demand for further improvements in vehicle
fuel performance, Toyota Industries has developed plastic
glazing, which is highly effective in realizing lighter-weightvehicles. Plastic glazing is approximately 40% lighter thanglass and enables new design-in that cannot be achieved
with the traditional combination of glass and steel sheet.
Toyota Industries has successfully developed a surface
processing technology that raises the durability of plastics
and a molding technology for enabling large-size glazing.
Leveraging these technologies and the inherent features ofplastic glazing, the Vehicle Business plans to commercialize it
as a panoramic roof* in 2011.

Panoramic roof *Vitz (Yaris outside Japan)

Toyota Industries Report 2010

* A large-size window attached to thevehicle roof for more light and a senseof openness

Business Activities

EngineEnhancing Our Development Capabilities and Production
Technologies and Know-How to Further Enhance
Product CompetitivenessBusiness Overview in Fiscal 2010
Toyota Industries recorded a year-on-year increase of 63,000
units, or 14%, in engine production to 502,000 units and anincrease of ¥8.4 billion, or 5%, in net sales to ¥165.0 billion.
These increases were supported by the startup of productionof new AR gasoline engines at the end of 2008.
Engine Production(Thousand units)

600
500
400

Development and Production of Engines for
Hybrid Lift Trucks
Toyota Industries developed and initiated production of
2.5-liter 1DZ-III diesel engines installed in the GENEOHYBRID 3.5-ton diesel-engine hybrid lift truck launched in
December 2009. Compared with conventional diesel-engine
lift trucks, the GENEO-HYBRID reduces fuel consumption
and CO2 emissions by roughly 50%*. Toyota Industries isalso striving to enhance product competitiveness in engines
for industrial vehicles amid rising market needs for improving
environmental performance.
* Measured data from Toyota Industries Corporation’s evaluation patternusing lift trucks with standard specifications

300
200
100
0

(FY)

06

07

08

09

10

Solid Production of KD and AR Engines
Since 2005, Toyota Industries has produced the 2.5-liter and
3.0-liter KD diesel engines for TMC’s Innovative International
Multi-Purpose Vehicle (IMV) series. In September 2009, thescope of models fitted with this engine was extended toinclude the Hiace. Supported in part by favorable sales of IMV
series vehicles for the Thai market, production of KD diesel
engines in fiscal 2010 reached 179,000 units.
Toyota Industries also achieved steady growth in unit salesof 2.5-liter AR gasoline engines on the back of robust salesof the RAV4 for North America. After initially manufacturing
this engine for the RAV4, we also began producing it for the
Camry, and in fiscal 2010, production of AR gasoline engines
reached 134,000 units.
Toyota Industries’ total engine production increased infiscal 2010 mainly due to contributions made by KD and AR
engines.

Applying Development Capabilities andProduction Technologies and Know-How
Toyota Industries is jointly developing clean diesel engineswith TMC, including AD engines that clear Euro 5 emission
standards, as part of integrated operations covering planning,development and production. Diesel engines are earning highenvironmental acclaim for achieving greater fuel efficiency
compared with gasoline engines and cleaner emissions.
Toyota Industries remains committed to utilizing its
capabilities gained through developing diesel engines and its
production technologies and know-how in diesel and gasoline
engines to further enhance product competitiveness.

KD diesel engine

AR gasoline engine

Toyota Industries Report 2010

Business Activities

Car Air-Conditioning Compressor
Leading the Industry with Forward-Looking
Environmental Technologies

Business Overview in Fiscal 2010
Reflecting lower production by automakers, unit sales ofcar air-conditioning compressors remained on par with theprevious fiscal year at 16.71 million units. The impact of
currency exchange rates and other factors led to a decreaseof ¥9.3 billion, or 5%, in net sales to ¥177.0 billion.
Compressor Sales(Million units)

25
20
15
10

launched in May 2009, we successfully integrated into thecompressor an inverter that previously required installation in
a separate location. By doing so, we realized a more compact
and lightweight compressor. Additionally, by expanding
our electric compressor lineup ranging from compact tolarge-size products, Toyota Industries is able to offer a lineof compressors that can be installed in a diverse range ofvehicles. At present, all Toyota hybrid vehicles are equippedwith Toyota Industries’ electric compressors. Our sales record
to TMC, coupled with high acclaim for fuel efficiency andquiet operation, led to adoption of our electric compressor byautomakers in North America and Europe. We will continue tomake efforts to expand sales to carmakers worldwide.

5
0

(FY)

06

07

08

09

10

Cumulative Global Production Reaches
300 Million Units
Since commencing production of car air-conditioning
compressors in 1960, Toyota Industries has consistently
introduced products that anticipate the needs of the times,
including compactness, lighter weights, quieter operation andfuel efficiency. Besides compressors for internal-combustion
vehicles, in recent years Toyota Industries has responded tothe trend toward the electrification of vehicles by developing
and manufacturing electric compressors for hybrid vehicles.
Toyota Industries currently produces compressors globally inthe four regions of Japan, North America, Europe and China.
We attained a noteworthy milestone in August 2009 when
our cumulative global production of compressors reached
300 million units. Toyota Industries’ compressors have been
widely adopted by major Japanese and overseas automakers
and capture the global No. 1* share in terms of sales volume.
* Survey by Toyota Industries Corporation

Expanding Sales of Electric Compressors for
Hybrid Vehicles
Toyota Industries developed the ES18 electric compressor
for the second-generation Prius and commenced the world’s
first mass production of electric compressors. For the ES14electric compressor fitted in the third-generation Prius

10

Toyota Industries Report 2010

ES14 electric compressor

Leading the Industry with Outstanding
Technologies
Given the economic slowdown that has persisted since
fiscal 2009, Toyota Industries moved quickly to streamline its
operations, including staff and facilities at its global production
sites, as part of efforts to strengthen its profit structure. As
initiatives for future growth, Toyota Industries has focusedon responding to emerging countries, where market needs
are rising, as well as on developing appealing products forcompact cars.
Particularly in China, we will carry out sales activities bytargeting higher-end models anticipated to grow in step withthe expansion of the automobile market and by leveraging
our advanced technologies.
Laws and regulations concerning vehicle fuel efficiency
continue to be strengthened in North America, Europe andJapan. As such, we will continue to lead the industry byfurther enhancing our technological capabilities, beginningwith environmental performance, which have earned
extensive praise from automakers worldwide.

Business Activities

Car Electronics
Helping to Realize a Low-Carbon Society via the Development
and Production of Electronic Components and Devices that
Support the Advance of Electric Vehicles

Business Overview in Fiscal 2010
Toyota Industries’ business activities in car electronics havecentered on such auxiliary power source devices as DCDC converters. In fiscal 2010, Toyota Industries developed
a direct-cooling device for power control units (PCUs) for
the third-generation Prius, thereby making our entry into
core components for hybrid vehicle drive systems. Toyota
Industries also worked to expand its business domains by
developing an onboard charger for plug-in hybrid vehicles(PHVs).

DC-DC converter

Newly Developed PCU Direct-Cooling Device
for Third-Generation Prius
PCUs raise the voltage of hybrid vehicle batteries and convert
the direct current into an alternating current to drive themotor. Previously, a major technical issue was controllingthe heat from the PCU’s power semiconductor devices. To
solve this issue, Toyota Industries utilized its independently
developed direct-cooling method to create a device thatsignificantly improves cooling performance, thus contributing
to the realization of compact and lightweight PCUs.
Toyota Industries has also developed a DC-DC converter
and an electric compressor integrated with an inverter forthe third-generation Prius, which have enabled significant
size reductions and lighter weights compared with previous
products.

designed to match the battery capacity, this charger isinstalled in the Prius PHV launched by TMC in December
2009.

New Development of Charging Stands for
PHVs and EVs
Toyota Industries is also involved in the development of acharging infrastructure as part of initiatives for promoting
greater use of PHVs and electric vehicles (EVs).
Adding communication device capabilities to its PHV and
EV charging stands launched in 2009, Toyota Industries hasdeveloped a comprehensive management system enablinguser authentication using an IC card and management ofusage data at charging stations. This system is currently
being used in demonstration testing promoted by government
agencies.
Toyota Industries’ solar charging station, which isequipped with a solar power generation system and electric
storage device and also connected to the commercial power
grid, is operated as part of an environmental model city
project in Toyota City, Aichi Prefecture.

Charging standSolar charging station

Realizing a Low-Carbon Society
PCU direct-cooling device

New Development of Onboard Charger
for PHVs
An onboard charger is an electric power converter thatconverts AC voltage used in households into DC voltage
and recharges the high-voltage batteries of PHVs. Optimally

The implementation of measures to curb global warming
and the shift away from fossil fuels are expected to further
accelerate the trend toward the electrification of vehicles.
We will promote Company-wide technological development
utilizing our strengths obtained from a wide variety ofbusiness operations including industrial vehicles andautomobiles. As a result, we will respond accurately andquickly to the electrification of vehicles, thereby contributing
to the realization of a low-carbon society.
Toyota Industries Report 201011

Business Activities

Materials Handling Equipment
Providing a Wide Range of Products and Services Globallyas Experts in Materials Handling Equipment

Business Overview in Fiscal 2010
In the materials handling equipment industry, severe
conditions persisted amid sluggish markets, with the
exception of some emerging countries. Although Toyota
Industries vigorously carried out sales activities globally, salesof our mainstay lift trucks decreased by 58,000 units, or 34%,
from the previous fiscal year to 111,000 units. This decrease,along with lower sales of aerial work platforms, resulted ina decrease of ¥208.0 billion, or 33%, in net sales to ¥431.6
billion.
Materials Handling Equipment Sales(Thousand units)

250
200
150

Addressing Emerging Countries andEnvironmental Technologies

100
50
0

(FY)

06

07

08

09

10

Market Conditions and Activities in 2009
Adversely affected by the global economic slowdown,
the lift truck market in 2009 struggled, falling to an
approximately 60% level versus the previous year. Under
these circumstances, Toyota Industries worked to lower its
break-even point through streamlining the structure including
restructuring production sites and re-evaluating workforce
balance, with the aim of realizing an optimal development,
production and sales structure.
Along with these streamlining measures, we also focusedon strengthening our business foundation in gearing up
for future growth. Additionally, we took steps to enhance
the appeal of our products by launching a new internalcombustion hybrid lift truck in Japan, introducing a newinternal-combustion lift truck in North America and expanding
our line of electric lift trucks in Europe. Despite facing
harsh market conditions, Toyota Industries also proactively
carried out sales activities. In Japan, we strengthened sales
activities targeting robust industries, while implementing sales
campaigns and a variety of other sales promotion activities

12

in North America. In China, which has become the world’s
largest market for lift trucks, Toyota Industries made efforts tostrengthen its sales structure by further expanding its sales
network, mainly in urban areas.
Turning to the market for aerial work platforms, capital
investments in Japan continued to be cut back in respective
industries, while overseas demand cooled in Europe, which
is a principal market. Within this challenging environment,
the AICHI brand, which commands the top share of theJapanese market, opened its second Chinese production site
in Hangzhou, Zhejiang Province, in the high-growth-potential
China market. The new site will engage in development,
production and sales and provide service for self-propelledaerial work platforms, for which demand is forecast to
expand.

Toyota Industries Report 2010

Despite some variations between geographic regions, since
the start of 2010 the global market for lift trucks has begun
to recover. Of particular note, steady growth is expectedin emerging countries, beginning with China. In view ofthis outlook, Toyota Industries is developing and launchingproducts suited to the needs of emerging country markets.
In response to globally rising needs for the electrification oflift trucks, we will strengthen the product appeal of small andmidsize lift trucks, with an emphasis on electric lift trucks.
For midsize and larger-class models, Toyota Industries will
introduce internal-combustion hybrid models to raise fuelefficiency. From small to large models, we will strive to offer
distinctive lift trucks that utilize our environmental technologies
through electrification.
Looking ahead, Toyota Industries will continue to sincerely
listen to customer needs worldwide and perceive market
changes in striving to expand sales for the TOYOTA, BT,
RAYMOND and CESAB brands.

Business Activities

Japanese Market
No. 1 Market Share in Lift Truck Sales
In 2009, harsh conditions prevailed in the lift truck market in
Japan since 2008 due to the curbing of capital investment
by domestic companies in response to the global economic
slowdown. Reflecting these circumstances, unit sales
by Toyota Material Handling Japan (TMHJ) in fiscal 2010
decreased 29% to 23,000 units.
Within this difficult market environment, TMHJ responded
to growing environmental problems by strengthening its
lineup of electric lift trucks while implementing proactive
sales and service activities that included expanding sales torobust businesses such as the foods and pharmaceuticals
industries. Thanks to these efforts, TMHJ secured a 40.9%
share of the Japanese market, marking the 44th consecutive
1
year that TMHJ has maintained the top position* in theJapanese lift truck industry.
*1: Surveys by Japan Industrial Vehicles Association and Toyota Industries
Corporation, 2009

Launch of Hybrid Lift Trucks
In recent years, there have been growing market needs
for raising environmental performance of lift trucks, suchas reducing CO2 emissions and improving fuel efficiency.
In December 2009, TMHJ launched the GENEO-HYBRID
3.5-ton diesel-powered internal-combustion hybrid lift truck
as a means of reducing the environmental impact in themidsize-and-above classes of lift trucks, for which demand isparticularly strong. The GENEO-HYBRID realizes world-classenvironmental performance by reducing fuel consumption
2and CO2 emissions by approximately 50%* while maintaining

the same operating performance as currently available dieselengine lift trucks.
*2: Measured data from Toyota Industries Corporation’s evaluation patternusing lift trucks with standard specifications

GENEO-HYBRIDStrengthening Electric Lift Truck Lineup
In May 2009, TMHJ carried out a model change for its 1.8and 2.0-ton Minimover electric pallet trucks and added 1.5and 2.5-ton models. Also, in October 2009, TMHJ added
new 5.5- to 8.5-ton electric lift trucks to its range of largesize electric lift trucks, for which there has been strong,long-standing customer demand. By expanding its lineup
of electric lift trucks, TMHJ is responding to diversifying
customer environmental needs.
TMHJ will continue to focus on the environment andsafety in its efforts to provide optimal materials handlingsolutions for customers through an extensive product range
encompassing lift trucks, warehouse trucks, aerial work
platforms, automated storage and retrieval systems andautomatic guided vehicles together with an abundance ofknow-how and an enhanced service structure.

North American Market
Maintained No. 1 Market ShareStrengthening Business Structures

Throughout the industry, the North American material handlingmarket declined in calendar year 2009. In this difficult
situation, Toyota Material Handling North America (TMHNA)
recorded overall unit sales of about 29,000, a decrease of
37%, for TOYOTA- and RAYMOND-brand products in fiscal
2010.
Toyota, as a full line supplier of lift trucks, maintained
3
the top market share for the eighth consecutive year*
and Raymond, as a leading provider of lift trucks used inwarehouse and distribution environments, was also highly
regarded. Together with both brands, TMHNA remained the3market share leader* .

Since the original formation of TMHNA, the companies haveworked closely together to improve business efficiencies
in the areas of manufacturing, quality and procurement for
both TOYOTA and RAYMOND brands. Examples of growing
synergies include improved quality, joint sourcing and supply
base consolidation, and accelerated implementation of TPS.
In March 2010, Raymond transitioned and integrated ReachFork truck manufacturing from Brantford, Ontario, Canada,
to Greene, New York, maximizing efficiency of lift truck
production.
In addition, the Toyota Material Handling Group (TMHG)
management team formalized the TMHNA management
and operations structure in April 2010, newly establishing*3: Survey by Crist Information & Research, LLC, 2009

Toyota Industries Report 201013

Business Activities

TMHNA, Inc. to further strengthen North American regional
coordination.

Launch of New Models, Expansion of
Solutions BusinessIn fiscal 2010, Toyota launched the innovative new line of
8-Series 4-wheel AC electric lift trucks. The new 4-wheel
models deliver longer runtimes and offer quicker accelerationin addition to excellent operability, durability and safety. Toyota
also launched new large internal-combustion pneumatic
lift truck models, ranging from 33,000- to 51,000-poundcapacities.
Raymond introduced the Model 4450 3-wheel sitdown electric counterbalanced truck featuring reduced
turn radius, easier access from either side of the truck andhandling capacities up to 4,000 pounds. A “Pedestrian Safety
in a Material Handling Environment” training module wasdeveloped by Raymond to assist an employer in teachingpedestrians how to act responsibly in environments where lift
trucks are operated. To date, the Raymond iWarehouse fleet
optimization system has been installed in well over 1,000 lift
trucks throughout many large companies.

8-Series

Model 4450

Contributing to Materials Handling Efficiency
A moderate recovery is expected in the North American
market in 2010. TMHNA will look for further synergies in
the coming year to fully leverage both the TOYOTA andRAYMOND brands. Some of the expected synergies include
consolidated sourcing and accelerated implementation of
TPS. TMHNA will continue to offer industry-leading products
and customer service aimed at improving customers’
operations.

European Market
Leaner Profit Structure in Harsh Markets
Over the past several years, Toyota Material Handling Europe(TMHE) has built a strong management structure along withan integrated European network representing the TOYOTA
and BT brands in more than 30 countries, from Western
Europe to Russia.
In Europe, the economic downturn spread and intensified
during 2009 with the European materials handling equipment
market declining by more than half compared with theprevious year. Faced with these new business realities, TMHE
took decisive action to reduce costs and align production andnetwork capacity with lower market demand.
In this very difficult environment, TMHE worked toenhance sales by offering a broad, up-to-date range of
products supported by services and business solutions
packages. As a result, TMHE recorded unit sales of around39,000 units in fiscal 2010, a 37% decrease compared withthe previous fiscal year.

BT Reflex reach truck, BT Levio powered pallet truck and
BT Staxio stacker have strengthened TMHE’s position andreputation as a leader in warehouse equipment design andinnovation. TMHE also reinforced its electric counterbalanced
lineup with the TOYOTA Traigo 48 and TOYOTA Traigo
HT models to complement its TOYOTA Traigo 24 range.
The Traigo family, together with TOYOTA Tonero internalcombustion lift trucks and the BT warehouse equipment
range, allow TMHE to offer customers a modern, highly
diversified and competitive product portfolio.
The CESAB product range was also expanded in 2009
with the launch of the new M300 internal-combustion lift truck
along with several new powered pallet, stacker and reachmodels.

Strengthening Product Lineup
Since 2007, TMHE has renewed its product range,
introducing new models that address more than 70% of
the market. New TMHE warehouse products such as the
Reflex

14

Toyota Industries Report 2010

Traigo 48

Providing Products and Added Value Services

In addition to new products, TMHE has also been developing
its service and business solutions offerings in line withevolving customer needs and new market realities. Toyota
Service Solutions give customers the flexibility to define theright service plan for their business, knowing that they will
receive fast, consistent, high-quality service from a teamof approximately 4,000 service technicians across Europe.
Toyota I_Site moves beyond traditional fleet managementwith a unique combination of information, expertise andsupport that helps businesses manage their materials
handling operations more effectively. Toyota Rental Solutions
and Approved Used Trucks provide today’s cost-conscious
customers with additional options for putting together theright fleet with high-quality Toyota and BT products.

In 2010, the European materials handling equipment market
is expected to show little improvement as Europe faces
continued low levels of economic growth and high levels of
unemployment. Nevertheless, TMHE enters the new fiscal
year with a leaner structure, a strong network presence anda balanced product, service and business solutions portfolio
while continuing to enhance our strengths.

Business Activities

Evolving Services and Solutions

International and Chinese Markets
Engaging in Business in Emerging Countries
Toyota Material Handling International (TMHI) covers themarkets of Asia, the Middle East, Oceania, Latin America andAfrica, while Toyota Material Handling China (TMHCN) covers
the Chinese market.
In 2009, many TMHI and TMHCN markets were facedwith a slowdown related to the global financial crisis that
occurred at the end of 2008. Amid these challenging
conditions, while TMHI and TMHCN aggressively moved
to promote sales, unit sales of industrial vehicles in theinternational and Chinese markets decreased roughly 30% toaround 19,000 units in fiscal 2010.

and introduce new products by drastically reviewing functions
and specifications that suit the Chinese market. TMHCN has
built a network that covers the majority of the Chinese market
and plans to further expand into metropolitan areas with highdemand. On the production side, Toyota Industry (Kunshan)Co., Ltd. has expanded local procurement and devoted
efforts to reducing lead times.
A gradual return to growth in lift truck sales is
expected in the major emerging country markets. TMHI
and TMHCN will expand sales by responding to market
growth and strengthening customer relationships via further
enhancements to sales and service operations.

Reinforcing Structure for Production, Sales
and Service Operations in Growing Markets
The organization in India continues to grow and gain strength
throughout the country, working to improve market coveragefor sales and service operations. As strong market growthis expected to continue, TMHI will work to strengthen its
operations in India to provide a wide range of products
supported by relevant customer services so that TMHI will beable to respond to the growing market.
In Brazil, TMHI has weathered a significant market
downturn and is now in a position to take advantage of a
return to market growth. Brazilian operations will continue tofocus on increased market coverage and customer support.
China has become the world’s largest market for lift
trucks, surpassing the U.S. lift truck market in 2009. As
continued market growth is expected, TMHCN will develop

Toyota Industry (Kunshan) Co., Ltd.

Toyota Industries Report 201015

Business Activities

Logistics
Addressing Customers’ Logistics Needs
through Manufacturing Know-How

Business Overview in Fiscal 2010
The operating environment surrounding the Logistics
Business remained difficult as the economic downturn
from the latter half of 2008 led to sales declines and strong
demands from customers regarding prices. As a result, in
fiscal 2010 net sales of the Logistics Business decreased¥6.3 billion, or 5%, to ¥108.5 billion. In response to these
conditions, Toyota Industries worked to acquire new orders
by enhancing the level of services and strengthened its
business structure by improving earnings.

Planning, Design and Operation ofDistribution Centers
We operate distribution centers for a diverse array of
industries and customers. Despite a severe operating
environment in fiscal 2010, we carried out proactive sales
activities that allowed us to secure new orders for theconsigned operation of distribution centers. Guided by thethinking embodied in TPS, we also vigorously promoted cost
improvement activities at logistics sites as we worked tostrengthen our profit structure. We also actively carried out
consulting services to respond to customer needs.

High Value-Added Services including
Cash Collection and Delivery and Cash
Proceeds Management and Data Storage,
Management, Collection and Delivery
The sluggish economy created difficult conditions forsecuring new orders in high value-added services. In our
cash collection and delivery and cash proceeds management
services, we worked to further raise efficiency by reorganizing
our service center in the Kanto area, which accounts forapproximately half of all sales to the retail industry andwhere high growth is anticipated in the future. In ourbusiness for storing, managing, collecting and delivering
data, we vigorously promoted comprehensive costreduction measures, while cultivating overseas markets andstrengthening our digital archive operations with the aim of
expanding future business domains.

Land Transportation Services
We posted a steep decrease in the volume of automotive
parts transported in fiscal 2010 due to a decline in production
volumes in the automobile industry, which is a principal
customer. As a response, we lowered our break-even pointby vigorously undertaking emergency profit improvement
activities. Highlighting our concern for the environment, we
also made efforts to promote eco-conscious transportation.

Taikoh Transportation Co., Ltd.’s land transportation
services

16

Toyota Industries Report 2010

Asahi Security Co., Ltd.’s cash collection anddelivery and cash proceeds management
services

Building New Business Models
Toyota Industries is pursuing various possibilities to address
all the logistics needs of customers. The Logistics Divisionand the Materials Handling Equipment Division are working
together, for instance, to promote the Logistics Solutions
Business by integrating hardware, software and operational
aspects of logistics. We will combine the know-how of eachbusiness division and utilize the resources to build new
business models.

Business Activities

Textile Machinery
A Leading Manufacturer of Textile Machinery that Meets
Diverse Customer Needs

Business Overview in Fiscal 2010
In the textile machinery industry, although demand iscontinuing to recover moderately from the worst of thedownturn in the principal market of China, harsh conditions
still prevailed worldwide. Within this environment, Toyota
Industries posted a decline of ¥8.7 billion, or 29%, in net
sales to ¥20.8 billion, reflecting lower sales of its mainstay
air-jet looms in China.

Air-Jet Loom Sales(Thousand units)

12
10
8

Developing Machinery that Creates High
Value-Added Textile Products

6
4
2
0

(FY)

and develops and sells yarn grading and yarn quality
inspection systems. To the present, Toyota Industries andUster have continued to explore areas where both companies
can mutually utilize each other’s strengths. To build even more
amicable relations and promote development, in November
2009 Toyota Industries acquired a stake in Uster as part ofthat company’s capital increase, becoming Uster’s second
largest shareholder, with a 22.45% stake.
By integrating Uster’s know-how in yarn quality
management in addition to defect detection and information
processing technologies into our own textile machinery, weplan to develop easier-to-use, high value-added products forour customers.

06

07

08

09

10

Sales in Fiscal 2010
Facing weak sales of textile machinery, Toyota Industries
placed increased emphasis on after-sales services.
Specifically, we focused on providing services from acustomer perspective. These included performing machinery
diagnostics to make needed adjustments for optimizing
performance capabilities of textile machinery, making
suggestions for parts replacements and enhancing Internet
sales of spare parts. Through such concerted efforts, we are
striving to further enhance customer confidence. Additionally,
we strengthened our activities for obtaining orders for ourmainstay air-jet looms and maintained the world’s No. 1*
share in unit sales for air-jet looms for the 13th consecutive
year since 1997.

Textile machinery plays an indispensable role in clothing,
one of the basic necessities of “food, clothing and shelter”
that supports people’s daily lives. In the future, per capita
consumption of textile products is forecast to rise in tandemwith population growth and rising standards of living, primarilyin emerging countries. As this trend unfolds, Toyota Industries
will respond to diverse customer needs by developing
machinery that can create even higher value-added textile
products, reducing substances of concern and enhancing theenergy efficiency and operability of our textile machinery.

JAT710 air-jet loom

* Statistics from the International Textile Manufacturers Federation (ITMF),
2009

Capital Alliance with Uster Technologies AG
Uster Technologies AG of Switzerland possesses a
proprietary business model that has built a global yarn quality
measurement standard by drawing on its superb technologies
RX240 series high-speed ring spinning frame

Toyota Industries Report 201017

Environmental Initiatives

An Interview with the Chief Environmental Administrator~The Ideal Approach that Toyota Industries Should Pursue~

Striving to Foster Changes
in Values and Actions by
Restoring the Chain among
Education, Ethics and Morals
Akira Imura
Executive Vice President*1

Having formulated the Fourth Environmental Action Plan as our medium-term environmental targets, we areundertaking an array of environmental conservation activities under this five-year plan that runs from fiscal 2007 to
fiscal 2011. We expect to attain most of the plan’s targets in fiscal 2011, the final year of the plan.
Society’s concerns about environmental problems are rising in parallel with the Japanese government’s
announcement of its medium- and long-term CO2 reduction targets and the convening of the 10th Conference of
the Parties to the Convention on Biological Diversity in 2010. Here we ask Akira Imura, Executive Vice President*1
and chief environmental administrator*1, how Toyota Industries will reflect various social changes into the Fifth
Environmental Action Plan.
*1: As of March 2010

Striving to realize zero CO2 emissions over the medium andlong terms should be the ideal approach taken by companies.

Q

Various environmental problems, beginningwith global warming, are becoming increasingly
serious. What is the fundamental cause
underlying these problems?

Let’s consider what has changed over the past 50 years.
Japanese lifestyles have become more materialistic as people
moved from an age of frugality toward the pursuit ofprosperity. The rise in standards of living has beenaccompanied by a corresponding increase in energy
consumption. I believe that perhaps the notion that
consuming large amounts of energy somehow equates toaffluence has become deeply entrenched in people’s minds.
This kind of attitude has made it necessary to give voice tosomething so obvious as protecting the environment. I believe
the way of thinking predominant during Japan’s period of
rapid economic growth, which was characterized by the
pursuit of convenience and economic efficiency, has remained
unchanged and this mindset is responsible for exacerbating
environmental problems.

18

Toyota Industries Report 2010

Q

Global warming undoubtedly heads the list of
today’s environmental problems. Could you
explain how Toyota Industries will work to curb
global warming under the Fifth Environmental
Action Plan?

The Japanese government has set the extremely high targetof achieving a 25% reduction in greenhouse gases by 2020
compared with the 1990 level. When thinking about attaining
these targets and looking beyond into the future, I believe theideal approach taken by companies over the medium- andlong-term should be to realize zero CO2 emissions.
Toyota Industries is currently formulating various scenarios
for its activities aimed at attaining the government’s targets
for 2020. I believe that first and foremost, continuous andthorough energy-conservation efforts in production activities
are the basis of all efforts. We will also proactively introduce
reusable energy when the timing is right. Still, we will be
unable to realize zero CO2 emissions by relying solely onthese measures.

Environmental Initiatives

From the standpoint of protecting biodiversity,
we will once again affirm and reinforce efforts focused on
activities to curb global warming.
Meanwhile, there is also the concept of carbon offsets. In
our Advanced Logistics Division within the Logistics Business,for instance, we provide consulting for improving customers’
logistics processes and thus in a broad sense are able tocontribute to a reduction in CO2. We can also make similar
contributions by pursuing greater energy efficiency in our
products.
Even by implementing these measures, realizing “zeroCO2 emissions” realistically will still be difficult. I believe that
our ultimate target should be to establish new businesses, forexample, for absorbing CO2. With a view toward suchbusinesses, we are engaging in R&D on technologies basedon the keyword 3Es*2 and will further strengthen initiatives inthis area in the future.
*2: 3Es stands for energy, environmental protection and ecological thinking. Toyota
Industries uses this keyword to express the direction of its future product R&D.

Q

Besides global warming, biodiversity has
recently attracted a high level of concern as anenvironmental issue. Could you tell us about thetypes of initiatives you are taking in this area?

Q

You talk about reforming the awarenessof individuals. Could you elaborate on its
importance?

In carrying out our corporate activities, we cannot attain ourtargets if each employee does not share a common
awareness. This awareness inherently is characterized by achain of education, ethics and morals that spreads from
employees to their families and to local communities.
However, it appears that this chain has broken down
somewhere in contemporary society.
It is of course crucial that we attain the targets of ourenvironmental conservation activities as a company. On thisbasis, if each employee can help restore the broken chain
and expand the scope of changes in awareness, this will havefar-reaching effects. I believe this also represents a type ofsocial contribution and will in turn lead to an acceleration of
our environmental initiatives. Reforming the awareness of
individuals and strengthening activities as a company is asynergy I would like to create.

The impact of global warming is considered as one cause
underlying the biodiversity problem. From the perspective ofToyota Industries’ business operations, I think that carryingout activities aimed at curbing global warming is the best way
we can make the most direct contribution to protecting
biodiversity at the moment. From the standpoint of protecting
biodiversity, we will continue to channel our efforts toward
activities aimed at curbing global warming. In tandem, we will
undertake tree thinning at Kaisho-no-Mori (Kaisho Forest),
which was begun in fiscal 2010, as well as participate in newactivities such as biotopes in the future. Involvement in these
activities has the potential to change the ways employees
think about environmental problems.
I believe that changing the values and actions, even if
gradually, of each person inhabiting our planet is extremely
crucial for solving environmental problems, not just thoserelated to biodiversity. To this end, I would like to focus onreforming the awareness of each employee through a seriesof activities.

I would like to create a synergy by reforming the awareness of
individuals and strengthening our corporate activities.

Toyota Industries Report 201019

Environmental Initiatives

Special Feature (Curbing Global Warming)

Continually Meeting Challenges as a
Leading Company that Focuses on Earthand People-Friendliness through Logistics
The development of the GENEO-HYBRID diesel-powered internal-combustion hybrid lift truck represents our
strategic move for the future in creating environmentally conscious logistics that contributes to the realization of alow-carbon society.

Earth Friendly
An Earth-Friendly Lift Truck that
Halves the Environmental Impact
Making frequent starts and stops whiletransporting heavy loads, lift trucks require large
amounts of energy during driving and loading
operations.
Through a hybrid system that combines adiesel engine, an electric motor and a battery, theGENEO-HYBRID can realize efficient energy
usage in accordance with actual operating
conditions. Moreover, the adoption of the hybrid
system enables a reduction in engine
displacement and a more compact engine.
As a result, compared with Toyota Industries’
currently available diesel-engine lift trucks in thesame class, the GENEO-HYBRID reduces fuelconsumption and CO2 emissions by almost
50%, thereby realizing world-class*1
environmental performance.

Comparison of
Fuel Consumption
and CO2 Emission Volumes

50%

reduction

Engine-powered
lift truck
Model: 02-7FD35

Measured data from Toyota Industries Corporation’s
evaluation pattern using lift trucks withstandard specifications

Helping Realize Earth Friendliness by Promoting
an Awareness of Eco-Driving during Work Operations
Fuel consumption can fluctuate by up to 10% depending on the way of driving
during lift truck operation.
When the GENEO-HYBRID is operated in a fuel-efficient, eco-friendly
manner, the “eco indicator” lights up on the LCD speed indicator display. By
confirming the “eco indicator” status, the operator can maintain an awareness of
ecological driving and thus improve fuel efficiency.

Eco indicator

20

Toyota Industries Report 2010

Model: 88-7FD35(Adheres to 2008 Japan
exhaust emission regulations)*1: Survey by Toyota Industries Corporation as of October 2009

Speed indicator display

Hybridlift truck

Environmental Initiatives

People Friendly
A People-Friendly Lift Truck that Realizes a Comfortable Work Environment
Since the engine room of a lift truck is located directly under
the driver’s seat, noise and vibrations felt by the operator tend
to be greater compared with automobiles, thus placing alarger burden on the operator. Through the adoption of a
hybrid system, the GENEO-HYBRID not only realizes acompact engine but also suppresses noise and vibrations by
optimally controlling the number of engine revolutions.
As a result, compared with Toyota Industries’ currently
available diesel-engine lift trucks in the same class, theGENEO-HYBRID achieves an approximately 10% reduction
in noise, thereby lessening the burden on the operator, while
reducing the level of noise audible to people in thesurrounding areas.
For load handling, which requires extra power, a motor
helps support the operation of the engine, which suppresses
the burden on the engine and reduces the emission of black
exhaust smoke.
The adoption of these measures has enabled a large
improvement in the work environment.

Noise Comparison

10%

reduction

Engine-powered
lift truck
Model: 02-7FD35(Adheres to 2008 Japan
exhaust emission regulations)Hybridlift truck

Model: 88-7FD35

Proportion of values using dB (A)measurement values

Developing Even More Earth- andPeople-Friendly Lift Trucks—­
TMHG Continues to Take on Challenges
with a Focus on the Logistics of Tomorrow
Developer Comments
Basically, there are no shortcuts leading to arevolutionary breakthrough. Rather, inventions
require repeatedly making daily efforts andthorough verifications. The GENEO-HYBRID
represents our best efforts at the moment but is
not a final goal.
On the Toyota Industries Website, chief engineer Yoshiyasu
Uchida describes the behind-the-scenes efforts leading up
to the birth of the GENEOHYBRID and explains histhoughts about development.

Yoshiyasu Uchida

Environmentally Friendly Certified Products

Eco label

The GENEO-HYBRID has been certified as anenvironmentally friendly product under Toyota Industries’
proprietary Environmentally Friendly Product Certification
System*2.
*2: A system for comprehensively evaluating such areas as curbing global warming, recycling
natural resources and risk management for substances of concern. This system
conforms to the Type II environmental labeling standard (ISO 14021) prescribed by theInternational Organization for Standardization (ISO).

Vehicle Engineering Office,Engineering Department
Toyota Material Handling Company

Access Toyota Industries’ Website for details.

GENEO HYBRID

Searchhttp://www.toyota-lf.com/hybrid/ (Japanese only)

Toyota Industries Report 201021

Environmental Initiatives

Global Environmental Commitment
The Toyota Industries Group will contribute to the compatibility of environmental conservation and economic growth throughout
its wide range of business activities, including automobile, materials handling equipment, logistics and electronics.

Basic Policy• The Toyota Industries Group will continue to set challenging
targets aimed at further reducing the environmental impact
of its business activities, listening carefully to voices of its
stakeholders such as customers, and acting in compliancewith the letter and spirit of laws and regulations.
• The Toyota Industries Group will continuously improve its
environmental management, placing environmental activities
among its highest priorities. In particular, the Company will
give priority to the following items.

• The Toyota Industries Group will aim to foster greatercommunication and teamwork within a wide range ofpartnerships, including those with customers and suppliers,
in order to promote sustainable management of theenvironment. In addition, the Toyota Industries Group will
act as an upstanding corporate citizen, taking an active partin the planning of activities that contribute to various
regional communities as well as to our global society.
July 2005

Tetsuro Toyoda
President

Curb global warming
Aiming to reduce energy consumption and the output ofgreenhouse gases through the entire lifecycle of its
products, services, and production activities

Address environmental concerns by working in harmony
with both regional communities and global society.

Use resources more efficiently

Harmony

Utilizing raw materials, water, and other resources
efficiently while working to reduce, reuse, and recycle
waste products

Sustainable
Management
Enhancement

Reduce environmental risk factors
Reducing the use and output of substances of concern
while evaluating environmental risk factors at the planningstage of business activity in order to prevent pollution

Enhance the eco-efficiency of
all our business activities,
products and services.

Responsibility
Fulfill our social responsibility
to participate inenvironmental conservation.

Environmental Management
Implementing an Environmental Management
SystemToyota Industries has positioned environmental response as
one of its most crucial management issues. To morevigorously undertake environmental response efforts, Toyota
Industries reorganized its environmental management system(EMS) previously operated independently at respective plants
and adopted a Company-wide integrated EMS, with thepresident at the top. We obtained certification for this EMS
from an external certification body in fiscal 2009. The
adoption of this EMS has enabled us to quickly reflect thedecisions made by management into our business
operations.
In fiscal 2010, we created the EMS Top Page, an internalsite for environmental information on our intranet. This site
lists trends in environmental performance and best practices
in improvement activities, with the aims of promoting

22

Toyota Industries Report 2010

information sharing Company-wide on the status of EMS
implementation in each business division and for improving
communication internally. By setting up this site, details ofoutstanding activities can be shared throughout theCompany, facilitating the implementation of new initiatives ineach business division.
We will further promote the integration of environmental
activities and management as we strive to continually raise
the level of our environmental management.

Approach to Environmental Education
Based on its belief that manufacturing starts with nurturing
excellent personnel, Toyota Industries actively provides
environmental education programs and carries out
enlightenment activities for its employees. Toyota Industries
has clarified the environmental-related knowledge andcapabilities required for each job position and rank, andEnvironmental
Committee

PresidentInternal audit

Based on the latest environmental trends and effectivenessof education, we intend to review our environmental
education programs to continuously nurture personnel
capable of making environmental responses.

Executive
vice
president

Responsible
internal auditor•Team leader•Supervising auditors•Auditors

Specialized committees
Product Technology
Subcommittee

Chief environmental
administrator
Secretariat(Plant Engineering& Environment Dept.)

Head Office

Divisions

Corporate Planning

VehicleProduction Environment
Subcommittee
CO2 Emission
Reduction Conference

Compressor

Purchasing

Electronics
Human Resources

Materials Handling
Equipment

GeneralAdministration

Textile Machinery

Division-Based
Promotion
Committees

Logistics

Environmental Conservation
Organization by
manufacturing plants(environmental risk management
overseen by plant managers)

New employee training

Evaluations of Environmental Audits

EngineR&D

Quality Control

Environmental Initiatives

Environmental Management Structure

Environmental Risk
Reduction Subcommittees(respective plants)

accordingly, is building an environmental education program.
Specifically, we offer rank-based environmental education,
introductory courses for environmental management andenvironmental audits as well as environmental producteducation.

Toyota Industries implements annual internal environmental
audits as well as external audits carried out by anindependent third-party institute. We utilize the results ofthese audits in our Company-wide EMS in working to reduce
environmental risk and continually improve environmental
performance.
For internal audits in fiscal 2010, we achieved a reductionin the average number of citations from 1.03 in fiscal 2009 to
0.74. Improvement proposals were reported to the president
by the Environmental Committee and then underwent a
management review*.
In terms of the external audit, we received an evaluationof having “comprehensively satisfied the categories required
under ISO 14001, with the EMS being properly implemented
and improvements being pursued.” We are now executing
corrective actions and making further improvements for one
minor non-conformance cited during the audit.
* To ensure the appropriateness, adequacy and effectiveness of the EMS,
the president receives a report on the status of environmental activities by
the Environmental Committee once a year, and then evaluates the need forchanges and improvements to the EMS and gives directions on measures tobe taken.

Scope of Group-Wide Environmental Management(As of March 31, 2010)

EuropeManufacturing company: 5Asia

Manufacturing company: 6

North America

Japan

Toyota Industries: 10 plants
Manufacturing company: 15

Manufacturing company: 10

Non-manufacturing companies
Japan: 62
Outside Japan: 98

Toyota Industries Report 201023

Environmental Initiatives

Basic Perspective of the Fourth Environmental Action Plan
As one of Toyota Industries’ major approaches to theenvironment, we devise and implement a five-year
Environmental Action Plan. In the Fourth Environmental Action
Plan (fiscal 2007 to fiscal 2011), curbing global warming,
resource utilization, reducing environmental risk factors andconsolidated management are positioned as key areas.
Further, specific action items and targets of the Toyota
Industries Group are laid out. Target management ismeasured by the concept of “eco-efficiency,” which quantifies
the effectiveness of our environmental activities.

Curbing Global Warming
Reducing CO2 Emissions through Internal
1
ESCO* Activities
In fiscal 2010, Toyota Industries commenced internal ESCO
activities with the aims of improving profitability through the
reduction of energy costs and reducing CO2 emissions ineach business division. In undertaking these activities, we
perform numerical analyses of facility usage conditions andmake improvements to reduce CO2 emissions withoutcompromising production efficiency.
*1: ESCO stands for Energy Service COmpany. ESCO activities involve
providing comprehensive services related to energy conservation andsupporting energy conservation activities.

In fiscal 2010, the first year of our ESCO activities, we
implemented ESCO activities for 13 projects and on a
non-consolidated basis reduced CO2 emissions by 2,067
tons and energy costs by ¥54 million.
In the future, we will carry out such measures as creatinga manual for energy conservation activities and establishingan ESCO dojo to develop human resources who can promoteenergy conservation. Through these initiatives, we will strive
to further reduce CO2 emissions while focusing on firmly
establishing our internal ESCO activities.

Promoting Energy Conservation by Shifting
Air-Conditioning Energy Sources<Internal ESCO Activities>
1. Management Diagnosis

4. Feedback•Confirm the state of adherence toenergy conservation laws
•Confirm the present level of energy
conservation•Propose waste improvement measures•Provide commentary on
countermeasure methods, investment
amounts and effects

2. Operational Diagnosis

5. Implement
Countermeasures•Analyze production and energy data
•Reduce losses on non-working andnon-operating days

•Implement actual countermeasures
based on improvement proposals

3. On-Site Diagnosis

6. Confirm Effects•Discover waste by making on-site
observations•Provide feedback based on
confirmation of the effects ofcountermeasures and promote
information sharing among divisions

Principal Activities•Identify losses during times of non-operation•Investigate air leakages•Conserve energy in blowers at effluent
treatment sites•Conserve energy by lowering pressure of
air compressors

At the Hekinan Plant, which produces engines, we haveprimarily used steam- and gas-operated equipment as energy
sources for air conditioning. Along with a recent renewal of
aging steam-operated equipment, we implemented
comprehensive energy conservation measures that enabled
us to almost halve CO2 emissions. Initiatives to be undertaken
include proactively introducing high-efficiency air-conditioning
energy sources, promoting the sharing of optimal control
systems*2 among business divisions and efficiently using
exhaust heat.
*2: Forecasting demand for air conditioning based on meteorologicalinformation, the system selects optimal energy sources in terms of cost andCO2 emissions for targeted time periods.

Principal Energy Conservation Countermeasures
1. Raise energy efficiency by shifting from steam-operated
equipment to electric equipment.
2. Reduce energy costs and CO2 emissions by using the best
mix*3 of electric power and gas.
3. Reduce the volume of energy usage by introducing facilities
that integrate leading-edge technologies (make effective
use of cogeneration waste heat through high-efficiency
heat pumps; reduce power used in transportation throughtransportation equipment with high energy efficiency; andoptimally operate air conditioning through the use of
optimal control systems).
*3: Combining energy sources and supplying the optimal balance of energy

24

Toyota Industries Report 2010

Environmental Initiatives

Resource Utilization[Product-Related]
Promoting Resource Conservation throughCompact, Lightweight Products
For the ES14 electric compressor fitted on the TOYOTA Priuslaunched in May 2009, we realized high-speed revolutions
and integrated the previously separate inverter that controls
revolutions into the car air-conditioning compressor. By doing
so, we created a compressor that is more compact andlightweight. As a result, we achieved a significant reduction inraw materials used andapproximately 20% reductions*1
in both cubic volume andweight while maintaining thesame level of coolingcapabilities compared with thepredecessor ES18 compressor.
*1: Comparison between the ES14 andthe ES18, including the inverter

wastewater treatment and realized an approximately 26%
reduction. As a result, we attained an approximately 34%
reduction in the volume of sludge generated.

[Production-Related]
Recycling Raw Garbage at MACI
Michigan Automotive Compressor, Inc. (MACI), a U.S.-based
subsidiary for manufacturing car air-conditioning
compressors, converted some 200kg of raw garbage from
employees’ lunch into compost and created a small garden,
where employees grow flowers and vegetables. The garden
also provides a venue for promoting internal communications.

ES14 electric compressor[Production-Related]
Reducing Amounts of Sludge Generated
At the Nagakusa Plant, a vehicle assembly plant, we
optimized the amount of sludge flocculants used inParticipating staff with plants grown using the compost

Reduction in Environmental Risk
[Product-Related]
Establishing a Company-Wide Management
System Capable of Responding to New
Chemical Substances Regulations
In January 2009, beginning the operation of a newly rebuilt
chemical substances management system (MARSY*2), Toyota
Industries is accumulating information on constituent
materials as well as chemical substances contained in our
products of all divisions. By confirming whether our products
contain substances subject to various new chemical
substance regulations, we can quickly ascertain the impact ofany such regulations on Toyota Industries.
Also, regarding the disclosure of information on whether
our products contain SVHC*3 as required by the European
REACH*4 regulation, we set up an information management
structure by establishing the REACH Response Committee
as a Company-wide organization.

[Production-Related]
Status of Compliance with Environmental
Laws
In fiscal 2010, there were instances of effluents from the plantexceeding standard values at three subsidiaries within the
Toyota Industries Group. Each of these subsidiaries has
already taken corrective measures and subsequentconfirmations have been made to ensure there are norecurrences.
We will work to prevent environmental risks in the futureby sharing information throughout the Toyota Industries
Group on cases of problems in the past and theircountermeasures as well as effective methods of risk
management. In addition, we will strengthen our initiatives tominimize the environmental impact should other incidents
occur.

*2: MARSY stands for MAterial data Research SYstem.
*3: SVHC stands for Substances of Very High Concern.
*4: REACH (Registration, Evaluation, Authorisation and restriction of CHemicals)
is a system for the comprehensive registration, evaluation, authorization
and restriction of substances of concern prescribed by the EU, and targets
parties involved in the manufacture and import of substances of concern
within the EU.

Toyota Industries Report 201025

Environmental Initiatives

Environmental Communication
Environmental Education for Elementary
School Children in Local Communities
To help continue preserving the Earth and its abundance of
nature, we strive to raise the environmental awareness ofchildren, who are the bearers of the future, by providing themwith opportunities to experience Toyota Industries’ various
environmental activities. As part of these efforts, we holdobservation tours of our plants and dispatch staff forenvironmental classes at schools for elementary and juniorhigh school children in local communities.

In September 2009, fifth graders from an elementary
school in Takahama City, Aichi Prefecture, visited the
Takahama Plant, which produces materials handlingequipment. The children listened to explanations onenvironmental activities at the Takahama Plant, observed afuel-cell lift truck, visited a recycling center that recycles fallen
leaves on the grounds of the plant into mulch and were given
a hands-on learning experience at the environmental dojo.
We will continue to communicate to children theimportance of protecting the natural environment.

Children participating in hands-on learning at theenvironmental dojo

Letters and pictorial diaries written by children

Forest Conservation Activities
Commencing “TICO Ecocoro Tree Thinning
Activity to Cultivate the Spirit of Ecology”
As part of its social-contribution activities in local communities,
in November 2009 Toyota Industries began participating in the
Kaisho-no-Mori (Kaisho Forest) Conservation Project*1 being
promoted by the Aichi Kaisho-no-Mori Center. Under the name“TICO Ecocoro Tree Thinning Activity to Cultivate the Spirit of
Ecology,” Toyota Industries plans to carry out tree thinning at
Kaisho-no-Mori (Seto City, Aichi Prefecture) over an area
covering 6,000 square meters during a three-year period. We
are contributing to the preservation of the forest and parkthrough planning, operation and tree thinning activities carriedout mainly by members of the Toyota Industries Team Leader
Association*2.
For the first activity, actual tree thinning was held following
a nature walk and lecture on the current state of the forest andthe necessity of tree thinning. The thinned trees are used tobuild a bridge spanning a stream in the forest and steps.
Impressed by the awe-inspiring expansiveness of nature,
participants also made such positive comments as “I would
like to see even more people become aware of the importanceof tree thinning” and “How about using the thinned trees formaking benches for use in rest areas at each plant?”
In the future, we plan to further advance these activities
including holding woodworking workshops using thinned trees.

26

Toyota Industries Report 2010

Participant Comments
Kiyotaka Sanji

Logistics Section,
Manufacturing Department
Toyota Material Handling Company

I participated in tree thinning activities because I wanted
to preserve a rich natural environment for future
generations. I now understand the need for tree thinningand the importance of nature. I hope these activities
play an important role in raising employee awareness ofnature conservation.

Tree thinning activities*1: Aichi Kaisho-no-Mori Center engages in forest maintenance activities andin the Satoyama regeneration initiative with the participation of prefecturalresidents and companies.
*2: An autonomous Company-wide organization consisting of approximately
1,700 young leaders at manufacturing sites, the organization carries out
cleanup and other community activities, promotes interchanges for selfdevelopment and holds recreational activities to deepen interaction among
members.

Environmental Initiatives

Environmental Data

Targets and Results of the Fourth Environmental Action Plan
Progress of the Fourth Environmental Action Plan (Product-Related)
Action Policies

CurbingGlobalWarmingResource
Utilization

Specific Actions

FY2010 Achievements

Promote technology development forlightweight vehicles

Develop components and materials for
attaining compact and lightweight vehicles•Developed a plastic glazing quarter window•Developed a CFRP crash box

For non-automobile related products, promote
the development of technologies that achieve
the best energy efficiency in the industry

Develop technologies for improving lift
truck fuel efficiency•Developed a diesel-engine hybrid lift truck

Promote the development of devices for clean
energy vehicles

Further improve the performance ofdevices for hybrid vehicles•Developed a DC-DC converter•Developed a PCU direct-cooling device•Developed charging infrastructure facilities

Further promote the use of designs that are
based on the Designs for Recycling concept

Steadily increase recycling rate by carryingout recycling rate evaluation in all productfields•Developed the ES14 electric compressor

Reducing
Further expand range of control ofEnvironmental Promote stricter control of and further reduction
substances of concern
Risk Factors in the use of substances of concern•Established a Company-wide management
system capable of responding to various
chemical substance regulations

Progress of the Fourth Environmental Action Plan (Production-Related)
Action Policies

CurbingGlobalWarmingResource
Utilization

Specific Actions

Control Items (FY2011 Target)

FY2010 Achievements
Result Assessment

TargetEnergy-derived CO2 emissions

Promote energy
reduction and energy
conservation throughinnovative productionengineering•Streamline production processes•Optimize supplied energy•Promote introduction of alternative
energy sources

Reduce CO2
emissions throughgreen logistics•Promote modal shift

Enhance resource
productivity•Reduce the volume of discarded
materials by taking action at thesource, such as improving yields andother measures

Reduce use ofgroundwater•Promote recycling of wastewater•Reduce use of water

Groundwater use
50% reduction (Non-consolidated)[vs FY2004](Total volume is indicated in parentheses;
unit: km3)

Reduce total
environmental impactsof waste disposal•Eliminate landfill disposal at all
consolidated manufacturing
companies

Further reduce
emissions of
substances ofconcern•Reduce emissions of air pollutants,
including volatile organic
compounds (VOCs)•Reduce emissions of watercontaminants

Eco-efficiency: 1.30 (Non-consolidated)[vs FY1991]

1.35

1.56

○

Eco-efficiency: 1.10 (Consolidated)[vs FY2004]

1.08

1.16

○

Eco-efficiency: 1.04 (Consolidated)[vs FY2007]

1.03

1.08

○

1.09

1.16

○

62%
reduction
(480)

73%
reduction(346)○

Landfill volume
Less than 1% (Manufacturing sites in
1.37%
Japan consolidated)(140)[vs FY1999](Total volume is indicated in parentheses; unit: t)

0.20%
(21)

○

External disposal
Eco-efficiency: 1.05 (Non-consolidated)[vs FY2004]

Environmental impact
Reducing
Environmental
Risk Factors

Calculation Formula of Eco-Efficiency
Eco-efficiency =Production efficiency =10% reduction (Non-consolidated)[vs FY2004]

32%
reduction

57%
reduction○

5% reduction (Manufacturing sites
in Japan)[vs FY2004]

39%
reduction

59%
reduction○

Production-Related

Production efficiency in subject year
Production efficiency in base year
Production indicator (Net sales or production volume, etc.)
Environmental impact of production activities

Toyota Industries Report 201027

Environmental Initiatives

Environmental Data

Business Activities and Their Environmental Impact
Environmental Impact FlowINPUTOUTPUT
R&D/Design◆ Energy [consolidated]
Total consumption

8,728TJ*1

Electricity
City gas
LPG
Petroleum products
Coal products
LNG

700,454MWh
83,943km3N
1,954t3,108kl
5,770t804t◆ Into the Air [consolidated]
CO2
531,403t-CO2
Greenhouse gases
other than CO23,507t-CO2
CO2 from logistics
50,813t-CO2
SOx (Sulfur oxides)
495kg
NOx (Nitrogen oxides)164t
VOC (Volatile organic
compounds)
1,581tProcurement

Production*1: Terajoule is a unit used to measure heat.
1 TJ = 1012 joules◆ Raw Materials [consolidated]
Raw materials
consumption◆ Chemical Substances [Japan consolidated]

362,506t

Emissions/transfers of PRTR
law designated substances

Transportation/Sales◆ Water [consolidated]
Water consumption

530t◆ Waste [Japan consolidated]
Waste generation

3,621km3

87,413t

Usage◆ Chemical Substances [Japan consolidated]
PRTR law*2 designatedsubstances◆ Into Waterways [Japan consolidated]
Water pollutants
Discharge oftreated wastewater

2,316tRecovery/Recycling*2: Short for Pollutant Release and Transfer Register, the PRTR
law is a scheme whereby businesses measure the releaseand transfer of PRTR-designated pollutants and report theirperformance to the government. The government thencompiles this data and releases it to the public.

27t
2,683km3

Trends in Environmental Performance
Toyota Industries’ principal environmental performance trends are as follows.
Energy-Derived CO2 Emissions and Eco-Efficiency

Total Water Consumption

Fourth Environmental Action Plan targets (Eco-efficiency)
Non-consolidated: 30% improvement over FY1991 levels
Consolidated: 10% improvement over FY2004 levels

Fourth Environmental Action Plan targets (Groundwater use)
Non-consolidated: Less than 50% of FY2004 levels (less than 633km3)

Non-consolidated
Subsidiaries in Japan
Overseas subsidiaries
Eco-efficiency (non-consolidated)
Target (non-consolidated)
Eco-efficiency (consolidated)
Target (consolidated)

1.00

Total
emissions (kt)

589

600
400

1.23

1.25

1.40

1.07

Good

1.6

1.35

1.4

1.16
1.08

1.2
1.0

3,028

566

531

(FY)

91

04

07

08

09

Waste
moved
off-site (kt)

1.00

1.02

112

120

1.08

10

111

1.16

103

81

80

2,082

(FY)

04

1,029
07

714
08

356

480

346

09

10

Environmental Impact Index

1.09
109

0

Good

Fourth Environmental Action Plan targets (Eco-efficiency)
Non-consolidated: 5% improvement over FY2004 levels

1.12

Eco-efficiency
1.2 Good
1.0
0.8

Non-consolidated (index)
Non-consolidated target (index)

Japan consolidated (index)
Japan consolidated target (index)

Fourth Environmental Action Plan targets (Environmental impact)
Non-consolidated: 10% reduction from FY2004 levels
Japan consolidated: 5% reduction from FY2004 levels(index)

140
120

100

100
80

68.2

78.8
55.0

60
40

40

28

3,197
2,534

1,267

Waste moved off-site
Eco-efficiency Target

0

3,186

2,000

Waste Moved Off-Site and Eco-Efficiency

Good

Water consumption (km3)
4,000

745

700

Public water supply

273

200
0

1.36

1.00

800

Good

1.01

1.34

Eco-efficiency
1.56

Industrial water
Groundwater
Target (Groundwater use)

61.2
41.3

20
(FY)

04

Toyota Industries Report 2010

07

08

09

10

Good

0

(FY)

04

07

08

09

10

Environmental Initiatives

Environmental Data

Soil and Groundwater Pollution Countermeasures
Toyota Industries carries out surveys and purification of soil
and groundwater contaminated from its past use oftrichloroethylene as a cleaning agent. We report the survey
results to local government authorities and provide
information at local community meetings. As measures toprevent pollution from substances covered by the Soil
Contamination Countermeasures Law as well as from grease
and oils, we have drilled observation wells at all plants to
conduct regular checks.

Trichloroethylene Readings (FY2010)
Plant

Weighted Average Concentration in
Groundwater (mg/l)

Current Status

Kariya Plant

0.67

Cleanup in progress

Kyowa Plant

0.34

Cleanup in progress

Environmental Accounting/On-Site Verification
Fiscal 2010 Environmental Accounting*

On-Site Verification

Scope of data collection: Toyota Industries
TIBC Corporation
Data collection period: April 1, 2009 – March 31, 2010

In fiscal 2010, Toyota Industries Head Office’s Plant
Engineering & Environment Department primarily conducted
on-site verification of the accuracy and consistency ofenvironmental data included in the Toyota Industries Reportas follows.

* Environmental accounting data is collected in compliance with the Ministry of theEnvironment’s Environmental Accounting Guidelines 2005 Edition.

Environmental Conservation Cost

(Millions of yen)
FY2010FY2009Category
Investment Expenses Investment Expenses
485
330
518
1,014
Pollution prevention costs

Business
Global environmental
area
conservation costs
costs

33

3,257

1,075

3,665
1,545

Resource recycling costs

5

433

123

Upstream/downstream costs

–

–

–

–

Management costs

39

720

109

1,068

Research and development costs

3

81

–

393

Social contribution activity costs

–

6

7

30

Environmental remediation costs

–

5

–

9

565

5,020

1,644

Total

5,585

7,724
9,368

Environmental Conservation Benefits
Environmental Impact

Comparison with
Previous Fiscal Year
26,961t decrease

Generation of waste products

25,810t decrease

CO2
VOC

484,876m3 decrease

SOx

0.02t decreaseNOx

9t decrease

COD (Chemical oxygen demand)

0.16t increase

Economic Benefits of Environmental
Conservation Initiatives
Item
Revenue

Details
Returns from sale of recycled waste products
Energy cost reductions

Cost Reduction Cost reduction by resource savings(including reductions in amount of water use andwastewater treatment costs)

Total

Hekinan Plant: Manufacture of diesel engines and gasoline
engines
Higashichita Plant: Manufacture of castings and diesel
engines
Hara Corporation: Manufacture and sale of textile
machinery and related components[Items to be Verified]
1. Adequacy of the scope of data collection; validity of datacollection and calculation methods; validity of internalverification
2. Trustworthiness and accuracy of collected/calculated data
as well as data reported to the Head Office; accuracy ofreporting method to the Head Office[Results]

241t decrease

Water[On-Site Verification Sites](Millions of yen)

1. The verified sites retained original data (evidence) for all
statistics, which were confirmed valid as were the scopeand method of data collection.
2. All discrepancies identified during verification have beencorrected.
3. Considerations of improvements will be made for datacollected using complex collection methods.

Amount

3,087
899
81
4,067

Toyota Industries Report 201029

Corporate Social Responsibility

Corporate Philosophy (Toyoda Precepts, Basic Philosophy and CSR Policy)
Contributing to Sustainable Development in Harmony with Society and the Earth

Guided by a strong ambition to “contribute to society and theworld through monozukuri (manufacturing),” Toyota Group
founder Sakichi Toyoda devoted himself to “endless creativity,
inquisitiveness, and the pursuit of improvement” and madevarious inventions including the non-stop shuttle-change
Toyoda Automatic Loom (Type G). The spirit of Sakichi isenshrined in the Toyoda Precepts, formulated in 1935 andpassed down today in our Basic Philosophy, which weestablished in 1992 and revised in 1998.

Toyoda Precepts• Always be faithful to your duties, thereby contributing to
the Company and to the overall good.
• Always be studious and creative, striving to stay aheadof the times.
• Always be practical and avoid frivolousness.
• Always strive to build a homelike atmosphere at workthat is warm and friendly.
• Always have respect for God, and remember to be
grateful at all times.

Basic Philosophy

The business environment surrounding Toyota Industries
is continuing to evolve with unprecedented speed. Regardlessof changes in the business environment and values, we
remain unchanged in our belief that realizing our Basic
Philosophy is the cornerstone of the Toyota Industries Group’s
corporate social responsibility (CSR). Acting on this belief, inMarch 2009 we formulated and implemented the Toyota
Industries Group CSR Policy, which clarifies our relationships
with stakeholders, namely customers, employees, business
partners, shareholders and local and global communities.
The Toyota Industries Group CSR Policy is divided intonine areas, and the CSR Committee* confirms and evaluates
the implementation status of this policy and promotes CSR
activities.
* Chaired by the president, the committee convenes twice per year andconsists of directors, managing officers and auditors.

CSR Areas
SocialContributions
Environmental
Conservation

Respect
for
Employees

Contributing to Sustainable Developmentin Harmony with Society and the EarthCompliance30

CustomerFirst

ManagementofConfidential
Information

Toyota Industries Report 2010

Timely andProper
Disclosure

Safetyand
HealthFair andTransparent
Business
Activities

Respect for the Law
Toyota Industries is determined to comply with the letterand 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 growthand 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 andservices that are clean, safe and of high quality.
Respect for Customers
Toyota Industries conducts intensive product research
and forward-looking development activities to create
new value for its customers.
Respect for Employees
Toyota Industries nurtures the inventiveness and otherabilities of its employees. It seeks to create a climate ofcooperation, so that employees and the Company canrealize their full potential.

Corporate Social Responsibility

Toyota Industries Group CSR Policy
We, Toyota Industries Corporation and our subsidiaries,
contribute to the harmonious and sustainable development ofsociety and the Earth through all business activities that we
carry out in each country and region based on our Basic
Philosophy.
We comply with local, national, and international laws andregulations as well as the spirit thereof, and we conduct ourbusiness operations with honesty and integrity.
In order to realize sustainable development, we carry out
management with an emphasis on stakeholders, and we will
endeavor to build and maintain sound relationships with our
stakeholders through open and fair communication.
We expect our business partners to support this initiative
and act in accordance with it.

Customers• Based on our philosophy of “Customer First,” we develop
and provide innovative, safe, and high-quality products andservices that meet a wide variety of customers’ demands toenrich the lives of people around the world.
• We will endeavor to protect the personal information ofcustomers and everyone else with whom we are engaged
in business, in accordance with the letter and spirit of eachcountry’s privacy laws.

Employees• We respect our employees and encourage personal growthfor our employees based on our belief that the success ofour business is led by nurturing each individual’s character
and abilities, and realization of the Group’s full potential.
• We support equal employment opportunities and diversity
for our employees and strive to enhance our team strength.
We do not discriminate against employees.
• We strive to provide fair working conditions and to maintainand improve a safe and healthy working environment for all
our employees.
• We respect and honor the human rights of people involvedin our business and, in particular, do not use or tolerate any
form of forced or child labor.
• Through communication and dialogue with our employees,
we build and share the value of “Mutual Trust and Selfresponsibility” and work together for the success of ouremployees and the company.
• Management of each company takes leadership in fosteringand implementing a corporate culture that promote ethicalbehavior.

Business Partners• We respect our suppliers, dealers, and other business
partners and work with them to realize mutual growth
based on mutual trust from a long-term perspective.
• Whenever we seek a new business partner, we are open to
any and all candidates, regardless of nationality or size, andevaluate them based on their overall strengths.
• We maintain fair and free competition in accordance withthe letter and spirit of each country’s competition laws.

Shareholders• We strive to enhance corporate value while achieving stable
and long-term growth for the benefit of our shareholders.
• We provide our shareholders and investors with timely andfair disclosure on our operating results and financial
condition.

Local Communities/Global Society[Environment]• We strive for environmental conservation through all of ourbusiness activities and develop and promote technologies
enabling the environment and economy to coexist
harmoniously. At the same time, we work with a wide
spectrum of individuals and organizations to curb global
warming and protect biodiversity with the aim of realizing
growth in harmony with the environment.

[Community]• We operate our business so as to earn the trust ofrespective communities by honoring the cultures, customs,
histories, and laws of each country.
• We constantly search for safer, cleaner, and superior
technologies that meet the evolving needs of society.
• We do not tolerate bribery of or by any business partner,
government agency, or public authority, and maintainhonest and fair relationships with government agencies andpublic authorities.

[Social Contribution]• Wherever we do business, we actively promote andengage, both individually and with partners, in social
contribution activities that help strengthen communities andcontribute to the enrichment of society.

Toyota Industries Report 201031

Corporate Social Responsibility

Corporate Governance
Aiming for Sound and Efficient Management to Maintain the Trust of Society

Corporate Governance Structure

Basic Perspective of Corporate Governancetoward future business expansion. The Management Committee,
which is composed of directors above the executive vicepresident level as well as relevant directors, managing officers
and corporate auditors, deliberates on a variety of issues
concerning important management matters such as corporate
vision, management policies, medium-term business strategies
and major investments.
Toyota Industries has a divisional organization system, withsignificant authority delegated to each business division. For
especially crucial matters, however, we have established theBusiness Operation Committee to enable the president to meetwith the heads of each business division regularly to monitor andfollow the status of their business execution. To strengthen ourbusiness structure, in June 2010 we set up the new position ofbusiness division executive director to perform such duties as
drawing up strategies, while the division heads concentrate on
the execution of business operations. At meetings of theManagement Council, directors, managing officers and corporate
auditors convene to share management information with regards
to matters resolved at the respective Board of Directors meetings
as well as the monthly status of the operations of each business.

Toyota Industries strives to enhance the long-term stability of its
corporate value and maintain society’s trust by earnestly fulfilling
its CSR commitments in accordance with its Basic Philosophy.
To that end, we strive to enhance our corporate governancebased on the belief that maintaining and improving management
efficiency and the fairness and transparency of our corporate
activities is of utmost importance.

Implementation Structure
Toyota Industries convenes monthly Board of Directors meetings
to resolve important management matters and monitor the
execution of duties by directors. External directors attend
meetings of the Board of Directors, in which they give opinions
and ask questions as deemed necessary to ensure legality andvalidity of the Board’s decisions as well as directors’ execution ofduties. Additionally, we have adopted the Managing Officers
System, which enables managing officers to focus solely on theexecution of business operations and speed up decision making.
In June 2010, we added two directors and three managing
officers to further strengthen our management structure directed

Shareholders’ Meetings
Appointment/Dismissal

Reporting

ReportingAppointment/Dismissal

Appointment/Dismissal
Cooperation

Board of Corporate Auditors
Board of Directors

Monitoring
Monitoring

Reporting

Independent
Auditors

Monitoring
Appointment/Monitoring

Corporate Auditor’s Office

Discussion/Reporting

ReportingPresident
Directives

Management
Committee

Management
CouncilBusiness Operation
Committee(Deliberates on important mattersfrom management’s perspective)(Reports on executionof business operations)(Follows up on the execution ofbusiness operations)

Directives

Discussion/
ReportingDirectives

Reporting(monthly)

Directives

Reporting

Reporting Directives

Committees*
Policies

Reporting

Reporting

Audit Dept.
Internal
Audit

ReportingAccounting
Audit

Committees*
Emergency Profit
Improvement Committee
CSR Committee
Environmental Committee

Directors/Managing Officers

Export Transaction
Control Committee

Business Divisions/In-House Company/Departments

Stock Option Committee

Subsidiaries/Affiliates

etc.

Discuss and follow issues
in each field

Emergency Profit Improvement Committee
In response to the rapid downturn in our business environment, Toyota Industries has established the Emergency Profit
Improvement Committee on December 1, 2008 directly under the president. Under the Emergency Profit Improvement
Committee, we have set up 16 different subcommittees, such as the General Expenses Subcommittee, and are actively working
on profit improvement activities throughout the Company. We will standardize cost reduction activities in each department, whilestrengthening planning and execution of measures to increase sales.

32

Toyota Industries Report 2010

Toyota Industries has adopted a corporate auditor/board ofcorporate auditors system. Two standing corporate auditors andthree external corporate auditors attend meetings of the Board of
Directors to monitor the execution of duties by directors. At thesame time, Meetings of the Board of Corporate Auditors are held
once a month to discuss and make decisions on such importantmatters as auditing policy. The standing corporate auditors carryout auditing by attending primary meetings and receiving reports
directly from directors. Additionally, we have assigned a staff ofdedicated personnel who monitor the legality, soundness andefficiency of management through collaboration with independent
auditors and the Audit Department.

Corporate Social Responsibility

Corporate Auditor System

Toyota Industries has striven to maintain the fairness ofmanagement. As part of such efforts, taking into consideration
the revisions (revised on December 22, 2009 and enforced on
December 30, 2009) to Securities Listing Regulations andEnforcement Rules for Securities Listing Regulations for the
Tokyo Stock Exchange, Osaka Securities Exchange and Nagoya
Stock Exchange, in June 2010 we designated two external
auditors as independent officers (an increase of one auditor), as
we further raise the independence and fairness of management.

Internal Control System
In accordance with the Corporate Law of Japan, 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 theeffectiveness and efficiency of business operations. Furthermore,
based on the Financial Instruments and Exchange Law (so-called
Japanese Surbanes-Oxley Act), we have built and continued
operating and evaluating a system to maintain the reliability offinancial reporting, while assessing the effectiveness of ourinternal controls and undergoing audits by independent auditors.

Compliance Hotline

Compliance

Risk Management

Basic Perspective

Basic Perspective

We believe that compliance not only means the mere adherence
to laws and regulations but also encompasses practicing
corporate ethics and respecting local cultures and customs in amanner that is in step with the changing times. We believe eachand every employee must behave fairly and sincerely with a highlaw-abiding spirit and an acute sense of ethics.

Implementation Structure
In accordance with the Basic Policies, we have put in place acompliance implementation structure. In June 2009, weestablished the Compliance Subcommittee, consisting of theheads of 12 departments in charge of legal compliance andchaired by the executive in charge of legal affairs. This
subcommittee re-examines laws deemed to be most crucial for
Toyota Industries and improves compliance monitoring methods,
including at subsidiaries, to efficiently familiarize employees withlaws, perform monitoring and provide guidance. These activities
are reported to and discussed and approved by the CSR
Committee along with activities for the next half year.
Furthermore, we have compiled conduct guidelines in our Codeof Conduct for the Company and Employees to promote a
deeper understanding among employees via education and the
distribution of a portable handbook. The Group companies
outside Japan have also established a code of conduct inaccordance with their respective countries’ laws and practices
and work to thoroughly familiarize their employees with theseguidelines primarily through compliance officers.

As one channel for employee consultation on compliance-related
matters, we established the compliance hotline staffed byexternal lawyers. It ensures employees do not have to worry
about being placed in a disadvantageous position when seeking
advice on compliance-related matters. In addition, we have also
set up various types of consultation desks to address opinions
and requests of customers and local residents as well as torespond to an array of concerns and questions from employees
and their families.

Based on the Basic Policies, we are establishing regulations andsystems regarding risk management as part of thoroughmeasures to prevent any risks. When a risk becomes evident, weclassify it as either a “problem” or a “crisis” judging by potential
losses on business operations and the magnitude of social
impact. We believe that a quick and precise initial response isimperative while its impact is relatively small.

Implementation Structure
Risks related to quality, safety, the environment, human resourcesand export transactions are discussed by the respective
committees and appropriate responses are made accordingly.
For example, the CSR Committee determines policies for risks
concerning the leakage of confidential information or information
about customers and employees while the Information Security
Subcommittee implements various risk prevention measures.
Specifically, we regularly re-evaluate the Confidential Information
Management Regulations (formulated in April 1987 and revised in
March 2010) and thoroughly promote an awareness of theimportance of properly managing confidential information at
workplace meetings with directors and persons in charge ofmanaging confidential information. We carry out training on initialaction to be taken and have also compiled the Rules in Case of
Earthquakes, which lays down standards of action in the event ofan earthquake. We strive to exhaustively familiarize employeeswith correct responses in the event of an earthquake by requiring
all employees to carry this handbook at all times.

Toyota Industries Report 201033

Corporate Social Responsibility

Responsibility to Our Customers
Pursuing Further Quality Improvement under Our “Customer First” Philosophy“A product should never be sold unless it has
been carefully manufactured and has beentested thoroughly and satisfactorily.”
Carrying on the spirit of founder Sakichi Toyoda, Toyota Industries
believes quality is its lifeline and a key management issue.
Maintaining and improving quality that encompasses safety is ourmost important responsibility to our customers and forms thebasis of our CSR approach.
Toyota Industries strives to maintain and improve every aspectof its corporate activities, most notably “product quality,”“marketing quality” and “total quality.” “Product quality” isembodied in the safety, eco-friendliness and durability of our
products, “marketing quality” in excellent sales and service and“total quality” in our overall corporate image and brand strength.
Types of Quality Sought by Toyota Industries

Total
quality

Pr

od

uc

tq

ua

lity

Quality levels
that customers
truly expect

Marketingquality
Manufacturing
quality

Designquality●Brand
strength●Corporate
image, etc.

Workmanship

●

Sales
●Service●

Brand identity

Ensuring Superior Quality Levels
Placing top priority on our Customer First philosophy, Toyota
Industries undertakes product development from the customer’s
viewpoint. Whenever any of Toyota Industries’ business divisions
develops a new product, a design review (DR) system is utilized toevaluate quality at all stages from product planning anddevelopment to production preparation, production and customer
satisfaction assessment. This ensures that the process of productdevelopment progresses to the next stage only when a division
head thoroughly checks to confirm that established quality target
levels have been achieved. Once information on a product defectreaches the quality assurance departments of each businessdivision after the product launch, it is fed back to the responsible
department (such as design and manufacturing) to quickly devise
countermeasures. At the same time, the DR system is reviewed
as necessary as part of thorough efforts to prevent the recurrenceof any problems in subsequent models.

34

Toyota Industries Report 2010

We constantly strive to deliver products that satisfy customers. To
this end, we always listen to customer voices and incorporate
these into R&D on new products and new functions that anticipate
the needs of the times.
As an example, in our efforts to ensure that customers cancontinually use our lift trucks in an excellent condition without any
inconveniences, we provide services not only through distributors
and dealers but also by directly interfacing with customers by
establishing internal customer consultation desks. We also directly
visit customers to conduct actual usage fact-finding surveys. The
valuable comments and requests received from customers arepromptly fed back to the relevant department, such as design,
and a response is subsequently provided to the customer throughdealers. At the same time, we make good use of these comments
and requests in product improvements and new productdevelopment.
Based on our determination to ensure a structure that will
never produce defects relating to safety, in March 2010 we
implemented comprehensive quality inspections from thecustomer’s viewpoint in quality assurance and design
departments. These inspections focused on whether we respondquickly enough in handling defects and on clarifying procedures
and standards for dealing with defects. The results revealed wehave not been subject to any major quality issues.

●

SafetyEco-friendliness●Durability●

Reflecting the Opinions and Needs ofCustomers into Products

Steadily Promoting Self-Concluding Quality
Control Activities
Every year, we issue the Quality Guidelines, which identifies
important quality improvements to all manufacturing sites in andoutside Japan. Respective business divisions hold Quality
Functional Committee meetings attended by top management toconfirm the implementation of the guidelines and follow throughvia on-site inspections.
In fiscal 2010, we worked to improve production processes
for which actual work operations were difficult to perform.
Moreover, newly identified problems were closely followed by theCompany-wide Council of General Managers of Quality Assurance
Departments to solve these issues quickly.
In fiscal 2011, we will thoroughly promote our Customer First
philosophy by placing top priority on the customer’s viewpoint,prevention and creating workplaces focusing first and foremost on
quality.
Toyota Industries is committed to improving the level ofcustomer satisfaction. To that end, predetermined procedures arecarried out in all processes according to instructions to ensure no
defective products are sent to post-processes, thereby achieving
manufacturing through self-conclusion of the process thatguarantees zero defects. We are resolutely implementing thispractice at manufacturing sites in Japan and overseas.

Corporate Social Responsibility

Responsibility to Our Associates
Creating a Workplace Where Associates Can Work Safely and with Reassurance

Building a Culture of Safety that Aims for Zero
Accidents and Illnesses

Creating Bright, Energetic and Caring
Workplaces

In accordance with our fundamental policy of “creating
workplaces and people capable of autonomously maintaining
occupational health and safety,” Toyota Industries strives toprevent industrial accidents and realize better work environments
to achieve “improvement from zero accidents to zero risk.” Infiscal 2010, we carried out activities under the following threeprincipal policies.

Toyota Industries is working to create bright, energetic and caring
workplaces where all superiors and their subordinates are linked
by strong bonds of trust and all associates can combine theirstrengths. We believe the key to realizing such workplaces is todevelop mutual understanding, a sense of solidarity and teamwork
via thorough communication. In addition to good communication
during work, we are promoting measures for enhancing
communication that include holding social gatherings at each
workplace, athletic festivals and summer festivals at each businessdivision, and long-distance relay races on a Company-wide level.

1. Rebuild Risk Assessment Activities
We re-evaluated details of each risk assessment activity, which
included establishing a manual for preventing any failure to
remove risks and formulating evaluation guidelines.
2. Enhance Safety in the Fundamental Aspects of Lift Truck
Operations
While continuing to require lift truck operators to wear seatbelts at all times, we re-evaluated the scope of work
operations and separated zones designated for walking andoperating lift trucks.
3. Create a Foundation for Realizing a Culture of Safety
We worked to create a culture of safety with such measures
as establishing a safety dojo in each plant to promote safe
work operations and safety awareness and behavior.

Safety dojo at the Takahama Plant

Health Management and Improvement
We promote Company-wide health improvement programs
concerning risks associated with aging and greater stress. Basedon the results of health check-ups, we provide health guidancefor persons with metabolic syndrome as well as health education
targeting associates reaching certain ages to prevent lifestylediseases.
Mental health care activities included providing self-care/line-care education, establishing consultation hotlines andenhancing work-resumption support systems.

Human Resource Development for Maximizing
the Capabilities of Each Person
With approximately half of our associates working at Group
companies outside Japan, Toyota Industries is making efforts todevelop human resources capable of playing globally active roles
that transcend regions and countries. In 2009, we establishedthe Hazu Academy, a global learning center, in Hazu Town, Aichi
Prefecture. While developing global leaders, the academy
provides training for nurturing human resources capable oflearning, thinking and acting independently.
In 2007, Toyota Industries established the Technical Learning
Center to develop engineers possessing expertise and execution
capabilities as well as highly skilled technicians capable ofhandling the fundamentals of manufacturing as we work toward
the improvement of techniques and skills across the entire Toyota
Industries Group. At the 47th National Skills Competition held in
October 2009, 13 associates participated in five categories andearned awards in all categories. Among the participants, Kazuma
Tateno won a gold medal in the “lathe” category and Hiroyuki
Kajitani won a gold medal in the “structural ironsmith” category.

Establishing Work Environments Where Diverse
Human Resources Can Play Active Roles
We are implementing a variety of measures to create work
environments where a diverse range of human resources can fully
exercise their capabilities. These measures include supporting abalance between work and child care/nursing care, enhancing are-employment system for associates who reach the mandatory
retirement age and supporting the employment and skills
development of persons with disabilities.

Health education for associates reachingcertain ages (exercise instruction)
Toyota Industries Report 201035

Corporate Social Responsibility

Responsibility to Our Business Partners
Aiming for Co-Existence and Co-Prosperity with Business Partners Based on Mutual Trust

Fair Competition Based on an Open Door Policy
We have a fair entry process that allows all potential business
partners, regardless of nationality, size and experience, the same
opportunity to offer us their products or services through ourWebsite to achieve broad and open procurement.
We evaluate our business partners based on economic
reasons such as the quality, price and their adherence to delivery
times. In addition, we comprehensively evaluate such matters astechnological capabilities, company stability and environmental
awareness as we strive for the timely procurement of excellent
products at lower costs based on fair business transactions.

Co-Existence and Co-Prosperity Based on
Mutual Trust
We work hard to realize an amicable relation of mutual benefit
with our business partners based on mutual trust. We holdannual procurement policy meetings for major business partners
to gain their understanding and cooperation. We also support
business partners’ efforts to improve their management platform
in order to consistently procure better products.
In fiscal 2010, we held quality and technical skills training
programs in addition to providing guidance directed toward
improving manufacturing processes at business partners’
production sites.

Reducing Environmental Impact throughGreen Procurement
In order to create environmentally friendly products, we aim to
procure parts, materials and equipment from business partners
that always give sufficient consideration to the environment.
Based on our Green Procurement Guidelines, we require ourbusiness partners to establish an environmental management
system. Particularly for parts and raw materials, we make it a rulefor business partners to acquire external certification on theirenvironmental management systems such as ISO 14001.
Regarding environmental impact, we require the suspension
and reduction of the use of substances of concern as well as the
management of usage of these substances if they are included
in our products or manufacturing processes. For products thatwill become a component of Toyota Industries’ products or thatwill be used in our manufacturing processes, our procurement
system requires our business partners to submit in advance a
non-use declaration of prohibited substances as well as data on
substances of concern, including a report on the substances
contained in parts. Only after confirmation is carried out do wepurchase these parts.

Localization of Business Based on Good
Corporate CitizenshipAs a company that undertakes local production overseas, we
promote procurement from local business partners in order tocontribute to the local community.

Further Promoting CSR
We provide education internally to all relevant persons for the
purpose of stringently complying with the competition laws ofeach country and to maintain fair business transactions.
It is Toyota Industries’ and our business partners’ policy tostrictly abide by both the letter and spirit of laws and regulations
while also carefully handling and protecting our business
partners’ confidential corporate information.
In fiscal 2010, we held study sessions on various laws andregulations for our suppliers. In fiscal 2011, upon formulating
guidelines, our policy is to ensure that business partners morethoroughly carry out CSR.

Responsibility to Our Shareholders and Investors
Raising Management Transparency through Timely and Appropriate Disclosure

36

Basic Perspective

Principal Activities

Toyota Industries continually carries out timely and appropriate
information disclosure for shareholders and investors. In this way,
we raise the management transparency so that we obtain an
appropriate company valuation through stock markets.
We make our utmost efforts to proactively disclose
management policy and financial information not only from thestandpoint of rigidly complying with legal disclosure standards
but also to foster a deeper understanding of Toyota Industries.

Toyota Industries strives to promote good communications with
its shareholders and investors. These efforts include holding
quarterly explanation meetings of financial results and individual
meetings with institutional investors and securities analysts. We
also hold explanation meetings for individual investors andconduct tours of our plants following the conclusion of thegeneral shareholders’ meeting. Additionally, the Toyota Industries
Website features an Investor Relations section for prompt

Toyota Industries Report 2010

* This publication combines our Annual Report and CSR andEnvironmental Report.

Investor Relations site
http://www.toyota-industries.com/ir/

Corporate Social Responsibility

information disclosure. We also publish the annual Toyota
Industries Report*, which provides a variety of information that
includes a summary of our business activities, our environmental
responses, CSR commitments and financial information.

Dividend Policy
Toyota Industries believes the interests of its shareholders are an
important management policy. Accordingly, we strive to enhanceand strengthen the management platform, actively carry out
business activities and raise corporate value.
In accordance with this policy, upon taking into considerationsuch factors as its business results and demand for funds,
Toyota Industries paid annual cash dividends per share of ¥30.0(interim cash dividend per share of ¥10.0 and year-end cash
dividend per share of ¥20.0) for fiscal 2010.

Explanation meeting for individual
investors

Responsibility to Our Local Communities
Promoting Harmonious Co-Existence with Local Communities

Actively Promoting Social Contribution
Activities
While striving to achieve sustainable growth as a company, we
work to fulfill our role as a good corporate citizen and actively
undertake social contribution activities in every community where
we do business in our efforts to help realize a prosperous andhealthy society.
To accomplish this, Toyota Industries proactively offers
cooperation and support with the objective of contributing tolocal communities by providing human resources, facilities, funds
and know-how. Each of our employees also strives to contributeto society through such means as volunteer activities.

TopicsCharity Drive by Employees of U.S.
Subsidiary
As part of social contribution activities, Toyota Material
Handling, U.S.A., Inc. (TMHU), a U.S. subsidiary engaged
in the sale of materials handling equipment, collected
over three tons of foods and housewares from employees
and donated these to food banks. Such activities areprimarily carried out during the November and December
holidays. TMHU is also actively involved in charities suchas gathering unneeded toys and donating these tochildren.

Examples of Social Contribution Activities
Theme

Main Activities

Social
WelfareHolding events for interaction with people with disabilities• Clam digging excursions, harvest festival, other festivals
Inviting children orphaned from traffic accidents to sports
eventsSupport for charity bazaars
Organizing year-end charity drive (fund solicitation)

Providing environmental education programs• “Aim for 21st century monozukuri (manufacturing)”
program
Support for youth invention clubs• Organizing workshops for children during summer
Youth
Development
vacations• Holding handmade kite-flying competitions
Organizing an internship program for junior high school
students
Support for Robot Club (Raymond, U.S.A.)
Forest conservation activities• Tree thinning activities• Promoting pallets made of lumber harvested from
Environment
tree thinning in Japan• Donating benches made of thinned wood in Japan
Participating in tree-planting festivals (TIEM, U.S.A.)

Community
Activities

Organizing cleanup activities
Roadside campaign for traffic safety
Crime-prevention patrols
Participating in traditional cultural events in local
communities
Donating to food banks (TMHU, U.S.A.)

Toyota Industries Report 201037

Major Operations(As of March 31, 2010)

Major Plants (Parent Company)
Start of
Operations

Main Products

Kariya Plant
Obu Plant
Kyowa Plant
Nagakusa Plant
Takahama Plant
Hekinan Plant
Higashichita Plant
Higashiura Plant
Anjo Plant

Textile machinery, car air-conditioning compressors
Parts for car air-conditioning compressors
Electronic equipment, automotive press dies, production facilities, engine parts
Automobiles
Industrial equipment, materials handling systems
Diesel engines, gasoline engines
Foundry parts, diesel engines
Parts for car air-conditioning compressors
Electronic equipment

1927
1944
1953
1967
1970
1982
2000
2002
2007

Major Consolidated Subsidiaries
Company Name

Location

Ownership
Ratio*

Aichi Corporation
Wanbishi Archives Co., Ltd.
TIBC Corporation
HANDA Casting Company
Mail & e Business Logistics Service Co., Ltd.
Asahi Security Co., Ltd.
TOYOTA L&F Tokyo Co., Ltd.
Altex Co., Ltd.
Sun River Co., Ltd.
IZUMI MACHINE MFG. CO., LTD.
TOYOTA L&F Keiji Co., Ltd.
Tokyu Co., Ltd.
Advanced Logistics Solutions Co., Ltd.
Toyoda High System, Incorporated
Nishina Industrial Co., Ltd.
KTL Co., Ltd.
TF Logistics Co., Ltd.
Tokaiseiki Co., Ltd.
Taikoh Transportation Co., Ltd.
SKM CORPORATION
Unica Co., Ltd.
Iwama Loom Works, Ltd.
Nagao Kogyo Co., Ltd.
TOYOTA L&F Shizuoka Co., Ltd.
TOYOTA L&F Hyogo Co., Ltd.
Hara Corporation
Sun Valley Inc.
Miduho Industry Co., Ltd.
Sun Staff, Inc.
ALT Logistics Co., Ltd.
Shine’s Co., Ltd.
Toyota Industries Well Support Corporation

Saitama
Tokyo
Aichi
Aichi
Mie
Tokyo
Tokyo
Shizuoka
Osaka
Aichi
Kyoto
Aichi
Aichi
Aichi
NaganoTokyo
Tokyo
Shizuoka
Aichi
Aichi
Aichi
Aichi
Aichi
Shizuoka
Hyogo
Gifu
Aichi
Aichi
Aichi
Aichi
Aichi
Aichi

51.0%
100.0%
60.0%
100.0%
50.5%
100.0%
100.0%
100.0%
100.0%
100.0%
75.0%
100.0%
100.0%
100.0%
97.5%
50.5%
51.0%
100.0%
51.8%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
60.0%
100.0%
100.0%

Toyota Industries North America, Inc.
Toyota Industrial Equipment Mfg., Inc.
The Raymond Corporation
Raymond-Muscatine Inc.
North Vernon Industry Corp.
Indiana Hydraulic Equipment, Corp.
Toyota Material Handling, U.S.A., Inc.
Michigan Automotive Compressor, Inc.
TD Automotive Compressor Georgia, LLC

Columbus, Indiana
Columbus, Indiana
Greene, New York
Muscatine, Iowa
North Vernon, IndianaFranklin, Indiana
Irvine, California
Parma, Michigan
Pendergrass, Georgia

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
60.0%
65.0%

Japan

North America
U.S.A.

*Including indirect investment

38

Toyota Industries Report 2010

Ownership
Ratio*

Company Name

Location

ACTIS Manufacturing, Ltd. LLC
Toyoda Textile Machinery, Inc.
Toyota Industries Personnel Service of America, Inc.
Lift-Rite Inc.
G. N. Johnston Equipment Co., Ltd.

Grapevine, Texas
Charlotte, North Carolina
Columbus, Indiana
Brampton, Ontario
Mississauga, Ontario

60.0%
100.0%
100.0%
100.0%
100.0%

Toyota Material Handling Mercosur Comercio de Equipamentos LTDA
Toyota Máquinas Têxteis Brasil Ltda

São PauloSão Paulo

100.0%
100.0%

Toyota Industries Europe AB
Toyota Material Handling Europe AB
BT Products AB
Toyota Material Handling Sweden AB
Toyota Industries Finance International AB
Toyota Material Handling Norway AS
Toyota Material Handling Finland OY
Toyota Material Handling Baltic SIA.
Toyota Material Handling Polska Sp. z o.o.
Toyota Material Handling Danmark A/S
Toyota Material Handling UK Limited
Toyota Material Handling Deutschland GmbHTD Deutsche Klimakompressor GmbH
Toyota Industrial Equipment, S.A.
Toyota Industrial Equipment Europe, S.A.R.L.
BT France S.a.r.l
Toyota Material Handling Europe Brussels NV/SA
Toyota Material Handling Belgium NV/SA
Toyota Material Handling Nederland B.V.
Toyota Material Handling España, S.A.
Toyota Material Handling Austria GmbH
Toyota Material Handling CZ s.r.o.
Toyota Material Handling Slovensko s.r.o.
Toyota Material Handling Hungary Kft.
Toyota Material Handling Schweiz AG
Toyota Textile Machinery Europe, AG
CESAB Carrelli Elevatori S.p.A.
BTCESAB S.r.l.
Toyota Material Handling Greece SA

Linköping
LinköpingMjölbyBrommaLinköping
Trondheim
VantaaRiga
Pruszków
Slangerup
Slough, Berkshire
Langenhagen
Bernsdorf
AncenisAncenisMarne La Vallée
Brussels
Wilrijk
Ede
Barberá del Vallés
Wiener Neudorf
Rudna
Bratislava
VecsésZürichUster
Bologna
BolognaAthens100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
65.0%
80.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
50.0%
100.0%
100.0%
100.0%
100.0%

Toyota Material Handling (Shanghai) Co., Ltd.
TD Automotive Compressor Kunshan Co., Ltd.
Toyota Industry (Kunshan) Co., Ltd.
Toyota Industry Automotive Parts (Kunshan) Co., Ltd.
Toyota Industries Trading & Logistics (China) Co., Ltd.
Kirloskar Toyoda Textile Machinery Pvt. Ltd.
Toyota Material Handling Australia Pty Limited

Shanghai
Kunshan, Jiangsu
Kunshan, Jiangsu
Kunshan, Jiangsu
ShanghaiBangalore
New South Wales

100.0%
59.8%
70.0%
60.0%
100.0%
95.1%
100.0%

North America
U.S.A.

CanadaSouth America
BrazilEuropeSwedenNorwayFinland
LatviaPolandDenmark
U.K.
Germany
FranceBelgium
Netherlands
Spain
Austria
Czech Republic
Slovakia
Hungary
Switzerland
Italy
GreeceAsia and Oceania
China

India
Australia

Major Affiliates Accounted for by the Equity Method
Company Name

Location

Fuji Logistics Co., Ltd.

Tokyo

Toyota Motor Industries Poland Sp. z o.o.

Jelcz-Laskowice

Ownership
Ratio*

Japan
26.6%

EuropePoland40.0%*Including indirect investment

Toyota Industries Report 201039

Board of Directors, Corporate Auditors and Managing Officers(As of June 23, 2010)

Board of Directors

ChairmanVice Chairman

Tadashi Ishikawa

Akira Imura

Tetsuro Toyoda

Executive Vice President

Executive Vice President

Executive Vice President

Kazunori Yoshida

Yasuharu Toyoda

Kimpei Mitsuya

Senior Managing Directors

Masafumi Kato
Kosaku Yamada
Toshiyuki Sekimori
Shinya Furukawa
Akira Onishi

President

Directors

Kazue Sasaki
Hirotaka Morishita
Yorihito Ikenaga
Tatsuro Toyoda
Norio SatohCorporate Auditors
Standing Corporate Auditors

Shigetaka Yoshida
Kakuo Ishikawa

Corporate Auditors

Katsuaki Watanabe
Toshio Mita
Hans-Juergen MarxManaging Officers
Senior Managing Officers

Managing Officers

				

Takaki Ogawa
Takashi Okubo
Norio Sasaki
Toshifumi Ogawa
Toshifumi Onishi
Kohei Nozaki

40

Toyota Industries Report 2010

Taku Yamamoto
Yukihisa Tsuchimoto
Kan Otsuka
Masaharu Suzuki
Hiroaki Asai
Takashi Ito
Toshiya Yamagishi
James J. Malvaso		Junichi Harada
Mikihiko Okamoto
Suguru Nakano
Tamotsu Sawada
Yasuhiro Murata
Yojiro Mizuno
Masahiro Kawaguchi
Susumu Toyoda

Financial Section

Financial Section
Management’s Discussion and Analysis ofFinancial Condition and Results of Operations
Consolidated Balance Sheets
Consolidated Statements of Income
Consolidated Statements of Changes in Net Assets
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
Report of Independent Auditors
Investor Information

42-47
48-49
50
51
52
53-74
75
77

Toyota Industries Report 201041

Financial Section

Management’s Discussion and Analysis ofFinancial Condition and Results of Operations
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations are
based on information known to management as of June 2010.
This section contains projections and forward-looking statements that involve risks, uncertainties andassumptions. You should be aware that certain risks and uncertainties could cause the actual results ofToyota Industries Corporation and its consolidated subsidiaries to differ materially from any projections or
forward-looking statements. These risks and uncertainties include, but are not limited to, those listed under“Risk Information” and elsewhere in this annual report.
The fiscal year ended March 31, 2010 is referred to as fiscal 2010 and other fiscal years are referred to ina corresponding manner. All references to the “Company” herein are to Toyota Industries Corporation andreferences to “Toyota Industries” herein are to the Company and its 159 consolidated subsidiaries.

Result of Operations

Operating Performance Highlights by Business
Segment

Operating Performance

Operating results by business segment are as follows. Net sales for

In fiscal 2010, the global economic recession persisted even thougheach segment do not include inter-segment transactions.

certain Asian countries, especially China, witnessed an economic
recovery and economies in the United States, Europe and other

Automobile Segmentcountries appear to have bottomed out owing to the effects ofIn fiscal 2010, the automobile industry saw a mild recovery in theeconomic stimulus measures. Despite signs of steady improvements

market due to the effects of economic stimulus measures in the form

such as increases in exports and decreases in private-sector capitalof tax cuts or incentives. Amid such operating conditions, net sales ofinvestment leveling off, the Japanese economy still remained in grave

the Automobile Segment totaled ¥778.3 billion, an increase of ¥22.4

condition overall due mainly to declining consumer prices and a highbillion (3%) from fiscal 2009. Operating income amounted to ¥23.6

unemployment rate.

billion, compared with an operating loss of ¥11.5 billion in fiscal 2009.

In such an operating environment, Toyota Industries undertook

Within this segment, net sales of the Vehicle Business amounted

efforts to strengthen its management platform by ensuring customer

to ¥398.7 billion, an increase of ¥20.6 billion (5%), due mainly to antrust through its dedication to quality as well as aggressively

increase in unit sales of the RAV4 that offset decreases in unit sales

implementing fixed cost reductions across the board.

of the Vitz (Yaris outside Japan) and Mark X ZiO.

In response to a rapidly deteriorating operating environment since

Net sales of the Engine Business totaled ¥165.0 billion, an

autumn 2008, the Toyota Industries Group worked to respond toincrease of ¥8.4 billion (5%), attributable primarily to an increase inharsh market conditions by systematically and quickly implementing

unit sales of AR gasoline engines.

emergency profit improvement activities. Consequently, Toyota

Net sales of the Car Air-Conditioning Compressor BusinessIndustries recorded operating income in fiscal 2010, comparedtotaled ¥177.0 billion, a decrease of ¥9.3 billion (5%), resulting fromwith posting an operating loss in fiscal 2009. In fiscal 2010, total

declines in production volume by automakers.

consolidated net sales of Toyota Industries amounted to ¥1,377.7
billion, a decrease of ¥206.5 billion (13%) from fiscal 2009 due toMaterials Handling Equipment Segment

lower sales in the materials handling equipment market.

In the materials handling equipment industry as a whole, the market

In terms of overall profit, due to concerted efforts during fiscal

remained in grave condition despite market growth in certain2010 to realize and maintain a streamlined structure mainly throughemerging countries. Although Toyota Industries aggressively engaged

reductions in personnel costs, expenses and capital investments,

in global sales promotion activities for lift trucks, a mainstay productsuch measures could offset lower sales in Japan and overseas. Asof this segment, unit sales decreased. A decline in unit sales of aeriala result, Toyota Industries posted consolidated operating income ofwork platforms was also a key factor. As a result, net sales of the¥22.0 billion compared with an operating loss of ¥6.6 billion in the

Materials Handling Equipment Segment totaled ¥431.6 billion, aprevious fiscal year. Ordinary income amounted to ¥31.7 billion, an

decrease of ¥208.0 billion (33%), while operating loss was ¥9.5 billion

increase of ¥17.4 billion (121%), while net loss totaled ¥26.2 billion,

compared with operating income of ¥3.7 billion in fiscal 2009.

compared with a net loss of ¥32.7 billion in the previous fiscal year,

42

due primarily to posting a loss arising from business restructuring of

Logistics Segment

the Materials Handling Equipment Segment as an extraordinary loss.

In the logistics industry as a whole, the overall operating environment

Toyota Industries Report 2010

Financial Section

remained severe as the volume of cargo transport continued toOperating Income (Loss)decline in the Japanese market. Net sales of the Logistics Segment

Operating income for fiscal 2010 was ¥22.0 billion, compared with anamounted to ¥108.5 billion, a decrease of ¥6.3 billion (5%), despite

operating loss of ¥6.6 billion in fiscal 2009, due to concerted efforts

the strong performance by businesses engaged in collection andduring fiscal 2010 to realize and maintain a streamlined structuredelivery of cash and management of sales proceeds. This was offset

mainly through reductions in personnel costs and expenses.

by a decline in sales of the cargo transport business of automotiverelated parts. Operating income amounted to ¥5.2 billion, an increase

Ordinary Incomeof ¥2.3 billion (82%) from fiscal 2009.

Ordinary income amounted to ¥31.7 billion, an increase of ¥17.4
billion (121%) from fiscal 2009. This was due to operating income of

Textile Machinery Segment¥22.0 billion, while an operating loss of ¥6.6 billion in fiscal 2009 andIn the textile machinery industry as a whole, the market remained

equity in net earnings of unconsolidated subsidiaries and affiliatedsevere even though the primary market of China experienced a mildcompanies amounting to ¥0.7 billion, compared with equity in net

recovery. Net sales of the Textile Machinery Segment totaled ¥20.8

losses of unconsolidated subsidiaries and affiliated companies ofbillion, a decrease of ¥8.7 billion (29%), owing mainly to a significant¥3.1 billion in fiscal 2009.

decrease in unit sales of air-jet looms to China, while operating loss
was ¥1.8 billion compared with an operating loss of ¥2.0 billion inThis was offset by a ¥22.5 billion (60%) decrease in dividends
income from fiscal 2009 to ¥15.2 billion.

fiscal 2009.

Loss before Income Taxes and Minority Interests
Others Segment

Loss before income taxes and minority interests amounted to ¥11.3

Net sales of the Others Segment totaled ¥38.3 billion, a decrease ofbillion, compared with loss before income taxes and minority interests¥5.9 billion (13%) from fiscal 2009, while operating income was ¥3.9

of ¥23.2 billion in fiscal 2009, as a result of a ¥17.4 billion (121%)

billion compared with an operating loss of ¥46 million in fiscal 2009.

increase in ordinary income to ¥31.7 billion. Extraordinary losses
increased ¥5.5 billion from fiscal 2009 to ¥43.0 billion as a result ofSales by Geographical Segment

business restructuring of the Materials Handling Equipment Segment.

Below are Toyota Industries’ operating results by geographicalsegment. Net sales for each geographical segment do not include

Net Lossinter-segment transactions.

Net loss totaled ¥26.2 billion compared with a net loss of ¥32.7 billion
in fiscal 2009. Net loss per share was ¥84.33 compared with net lossJapan

per share of ¥105.16 in fiscal 2009.

Net sales decreased ¥71.4 billion (7%) from fiscal 2009 to ¥995.2
billion, while operating income was ¥29.9 billion compared with anoperating loss of ¥1.6 billion in fiscal 2009. This was attributableprimarily to decreases in personnel costs and expenses, despite
decreases in unit sales of lift trucks.

Consolidated Financial Condition
Total assets increased ¥261.8 billion from the end of the previous
fiscal year to ¥2,589.2 billion due mainly to an increase in market

North America

value of investment securities. Net assets amounted to ¥1,104.9

Net sales decreased ¥56.8 billion (29%) from fiscal 2009 to ¥137.0

billion, an increase of ¥127.3 billion from the end of the previous fiscalbillion, while operating loss was ¥1.4 billion compared with anyear.

operating loss of ¥4.7 billion in fiscal 2009, due mainly to decreases
in unit sales of car air-conditioning compressors and lift trucks.

EuropeLiquidity and Capital Resources

Net sales decreased ¥71.6 billion (26%) from fiscal 2009 to ¥200.5

Toyota Industries’ financial policy is to ensure sufficient financing

billion, while operating loss was ¥7.1 billion compared with anand liquidity for its business activities and to maintain strong balance

operating loss of ¥3.9 billion in fiscal 2009. This was attributablesheets. Currently, funds for capital investments and other long-term

primarily to a decrease in unit sales of lift trucks.

capital needs are provided from retained earnings and long-term
debt, and working capital needs are met through short-term loans.

OthersLong-term debt financing is carried out mainly through issuance ofNet sales totaled ¥44.9 billion, a decrease of ¥6.7 billion (13%) from

corporate bonds and loans from financial institutions.

fiscal 2009, while operating income increased ¥0.5 billion (23%) to¥2.5 billion.

Toyota Industries continues to maintain its solid financial
condition. Through the use of such current assets as cash andToyota Industries Report 201043

Financial Section

Management’s Discussion and Analysis of Financial Condition and Results of Operations

cash equivalents and securities, as well as free cash flows andInvestment in property, plant and equipment in the Logistics

funds procured from financial institutions, Toyota Industries believes

Segment totaled ¥6.3 billion, including ¥4.2 billion for Asahi Security

that it will be able to provide sufficient funds for the working capitalCo., Ltd. and ¥1.8 billion for Wanbishi Archives Co., Ltd.

necessary to expand existing businesses and develop new projects,
as well as for future investments.
Regarding fund management, the Company undertakes

The Textile Machinery Segment made an investment in property,
plant and equipment in the total amount of ¥45 million, including ¥27
million for the Company.

integrated fund management of its subsidiaries in Japan, while Toyota

The Others Segment made an investment in property, plant andIndustries North America, Inc. (TINA) and Toyota Industries Financeequipment in the total amount of ¥3.1 billion, including ¥2.5 billion forInternational AB (TIFI) centrally manage the funds of subsidiaries in

the Company.

North America and Europe, respectively.
Through close cooperation among the Company, TINA andNecessary funds were provided by a portion of bonds as well as
cash on hand and bank loans.

TIFI, we strive for efficient, unified fund management on a global
consolidated basis.

Strategies and Outlook
Cash Flows

Outlook for Results for Fiscal 2011

Cash flows from operating activities resulted in an increase in cash

recovery path in fiscal 2011, uncertainties remain with regard toof ¥203.4 billion in fiscal 2010, due mainly to depreciation andpersistent concerns over deteriorating financial and employment

amortization of ¥110.1 billion and loss before income taxes andsituations, the impact of the discontinuation of car replacement

minority interests of ¥11.3 billion. Net cash provided by operating

incentive measures and rising prices of raw materials such as ironactivities increased by ¥137.7 billion from ¥65.7 billion in fiscal 2009.

and crude oil. As a result, the business operating environment isCash flows from investing activities resulted in a decrease in
cash of ¥36.8 billion in fiscal 2010, attributable primarily to payments

Although we expect the global economy to continue on a gradualexpected to remain difficult.
Amid this challenging environment, Toyota Industries will continue

for purchases of property, plant and equipment amounting to ¥48.3

to undertake concerted efforts on a global basis to quickly andbillion. Net cash used in investing activities decreased by ¥77.4 billion

thoroughly rebuild our business structure into a more muscular andfrom ¥114.2 billion for fiscal 2009.

stronger one. For medium- to long-term growth, we will pursue

Cash flows from financing activities resulted in a decrease in cashof ¥38.2 billion in fiscal 2010, due mainly to repayments of short-termloans payable of ¥37.6 billion.

greater efficiency and further improvement of our business structure.
Specifically, our initiatives to reduce fixed costs will remain inplace to maintain a streamlined business structure. At the same

After translation adjustments, cash and cash equivalents as oftime, we will work to enhance our competitiveness by strengthening

March 31, 2010 stood at ¥317.5 billion, an increase of ¥129.5 billion

cost planning activities for each product category. We will pursue(69%) from fiscal 2009.

every opportunity geared toward sales expansion along with closely
monitoring market needs.
In the medium to long term, our foremost focus remains on

Investment in Property, Plant and Equipment

quality. Addressing environmental and safety concerns as well as

During fiscal 2010, Toyota Industries made a total investment of

Keeping these in mind, we will strive to develop products and¥47.5 billion in property, plant and equipment (including vehicles

cutting-edge technologies that are closely aligned with customer

and materials handling equipment for lease) in order to launchperspectives.

new products, streamline and upgrade production equipment andaugment R&D facilities.

Specific initiatives include refining element technologies that willcontribute to electrification, lighter weights and energy savings based

In the Automobile Segment, investment in property, plant andon 3Es (energy, environmental protection and ecological thinking).

equipment totaled ¥12.0 billion. A primary breakdown of this amount

By employing these element technologies in new automobile andincluded ¥7.3 billion for the Company and ¥2.2 billion for Toyota

materials handling equipment products, our mainstay businesses, weIndustry Automotive Parts (Kunshan) Co., Ltd.

aim for further business expansion.

The Materials Handling Equipment Segment made an investment

Concurrently, in emerging countries where economies are expectedin property, plant and equipment in the total amount of ¥26.0 billion.

to grow, we will strive to quickly establish more customer-oriented supply

The primary breakdown comprised ¥0.6 billion for the Company,

chain management via product planning and product development to¥15.5 billion for the Toyota Material Handling Europe Group and ¥6.3

meet the needs in respective local markets.

billion for the Toyota Material Handling Australia Group.

44

enhancing our competitive strength will also be equally imperative.

Toyota Industries Report 2010

To support such consolidated management on a global scale,to Toyota Motor Corporation (TMC). In fiscal 2010, net sales to TMC

learn, think and act and who will enhance the power of the workplace.

accounted for 43.6% of consolidated net sales. Therefore, TMC’s

In addition to placing top priority on safety, we will thoroughly

vehicle sales could have an impact on Toyota Industries’ businessenforce compliance, including observance of laws and regulations,

results. As of March 31, 2010, TMC holds 24.61% of the Company’s

and actively participate in social contribution activities. Through thesevoting rights.

Financial Section

Toyota Industries will strive to nurture people who take the initiative toand further measures, Toyota Industries aims to meet the trust ofsociety, raise corporate value and grow in harmony with society.

Product Development Capabilities
Based on the concept of “developing appealing new products,”
Toyota Industries proactively develops new products by utilizing its

Dividend Policy

leading-edge technologies, as it strives to anticipate increasingly

Toyota Industries regards the benefits of shareholders as one of its

satisfaction of its customers.

most important management policies. Based on this stance, we

sophisticated and diversifying needs of the market and ensure the
R&D activities are focused mainly on developing and upgrading

will strive to strengthen Toyota Industries’ corporate constitution,

products in current business fields and peripheral sectors. Toyota

promote proactive business development and raise Toyota Industries’

Industries expects that revenues derived from these fields will

corporate value.

continue to account for a significant portion of total revenues andToyota Industries’ dividend policy is to meet the expectations ofanticipates that future growth will be contingent on the development

shareholders for continuous dividends while giving full considerationand sales of new products in these fields. Toyota Industries believes

to business performance, funding requirements, the dividend payoutthat it can continue to develop appealing new products. However,ratio and other factors. Toyota Industries’ Ordinary General Meeting

Toyota Industries may not be able to forecast market needs andof Shareholders, held on June 23, 2010, approved a year-end cash

develop and introduce appealing new products in a timely manner.

dividend of ¥20.0 per share. Including the interim cash dividend ofThis could result in lower future growth and have an adverse impact¥10.0 per share, cash dividends for the year totaled ¥30.0 per share,on Toyota Industries’ financial condition and business results.

a decrease of ¥10.0 per share from fiscal 2009.

Such a situation could result from risks that include no assurance

Toyota Industries will use retained earnings to improve the

Toyota Industries can allocate sufficient future funds necessary for thecompetitiveness of its products, augment production capacity indevelopment of appealing new products; no assurance that productJapan and overseas, as well as to expand into new fields of businesssales will be successful, as forecasts of products supported by theand strengthen its corporate constitution in securing future profits formarket may not always be accurate; and no assurance that newly

its shareholders. Toyota Industries will also use retained earnings todeveloped products and technologies will always be protected as

repurchase treasury stock.

intellectual property.

The Company’s Articles of Incorporation stipulate that it may pay
interim cash dividends as prescribed in Article 454-5 of the Corporate

Intellectual Property Rights

Law, and it is the Company’s basic policy to pay dividends fromIn undertaking its business activities, Toyota Industries has acquired

retained earnings twice a year (interim and annual).

numerous intellectual property rights, including those acquired

The Company’s Articles of Incorporation also stipulate that what

overseas, such as patents related to its products, product designs

is prescribed in Article 459-1 of the Corporate Law can be added toand manufacturing methods. However, not all patents submitted will

the Articles of Incorporation. As the Company’s policy, discretion tonecessarily be registered as rights, and these patents could thus bepay interim cash dividends is determined by the Board of Directors

rejected by patent authorities or invalidated by third parties. Also,

while payment of year-end cash dividends is subject to approval ata third party could circumvent a patent of Toyota Industries andthe Ordinary General Meeting of Shareholders.

introduce a competing product into the market. Moreover, Toyota
Industries’ products utilize a wide range of technologies. Therefore,
Toyota Industries could become a party subject to litigation involving

Risk Information

the intellectual property rights of a third party.

The following represent risks that could have a material impact on

Product Defects

Toyota Industries’ financial condition, business results and share

Guided by the basic philosophy of “offering products and services

prices. Toyota Industries judged the following as future risks as ofthat are clean, safe and of high quality,” Toyota Industries makes its

March 31, 2010.

utmost efforts to enhance quality. However, Toyota Industries cannot
guarantee all its products will be defect-free and that product recalls

Principal Customers

will not be made in the future. Product defects that could lead to

Toyota Industries’ automobile and engine products are sold primarily

large-scale recalls and product liability indemnities could result in

Toyota Industries Report 201045

Financial Section

Management’s Discussion and Analysis of Financial Condition and Results of Operations

large cost burdens and have a significant negative impact on the

Exchange Rate Fluctuations

evaluation of Toyota Industries. It could also have an adverse effectToyota Industries’ businesses encompass the production and sales

on Toyota Industries’ financial condition and business results due to aof products and the provision of services worldwide. Generally, thedecrease in sales, deterioration of profitability and decrease in sharestrengthening of the yen against other currencies (especially against

prices of Toyota Industries.

the U.S. dollar and the euro, which account for a significant portion of
Toyota Industries’ sales) has an adverse impact on Toyota Industries’

Price Competitionbusiness, while a weakening of the yen has a favorable impact. An

Toyota Industries faces extremely harsh competition in each of theincrease in the value of currencies in countries or regions whereindustries in which it conducts business, including its Automobile

Toyota Industries carries out production could lead to an increase in

and Materials Handling Equipment businesses, which are the core

local production, procurement and distribution costs. Such an increaseof Toyota Industries’ earnings foundation. Toyota Industries believes

in costs could reduce Toyota Industries’ price competitiveness.

it offers high value-added products that are unrivalled in terms of

Additionally, because export sales of several businesses aretechnology, quality and cost. Amid an environment characterized

denominated mainly in yen, exchange rate fluctuations could have an

by intensifying price competition, however, Toyota Industries may

adverse impact on Toyota Industries’ financial condition and businessbe unable to maintain or increase market share against low-cost

results due to a change in market prices.

competitors or to maintain profitability. This could have an adverse
impact on Toyota Industries’ financial condition and business results.

Share Price Fluctuations
Toyota Industries holds marketable securities, and therefore bears

Reliance on Suppliers of Raw Materials andComponents

the risk of price fluctuations of these shares. Based on fair market

Toyota Industries’ products rely on various raw materials andToyota Industries had unrealized gains. However, unrealized gains oncomponents from suppliers outside Toyota Industries. Toyota

marketable securities could worsen depending on future share priceIndustries has concluded basic business contracts with these

movements. Additionally, a fall in share prices could reduce the value

external suppliers and assumes it can carry out stable transactionsof pension assets, leading to an increase in the pension shortfall.

value of these shares at the end of the fiscal year under review,for raw materials and components. However, Toyota Industries
components, which arise from a global shortage due to tight supply

Effects of Disasters, Power Blackouts and Other
Incidents

or an unforeseen accident involving a supplier. Such shortages could

Toyota Industries carries out regular checks and inspections of its

have a negative effect on Toyota Industries’ product production andproduction facilities to minimize the effect of production breakdown.

cause an increase in costs, which could have an adverse impact on

However, there is no assurance Toyota Industries can completely

Toyota Industries’ financial condition and business results.

prevent or lessen the impact of man-made or natural disasters,

has no assurances against future shortages of raw materials andincluding malfunctions of production facilities, fires at production

Environmental Regulations

facilities and power blackouts. For example, the majority of Toyota

In view of its social responsibilities as a company, Toyota Industries

Industries’ domestic production facilities and most of its businessstrives to reduce any burden on the environment resulting frompartners are situated in the Chubu region. Therefore, a major

its production processes, as well as strictly adheres to applicableearthquake such as the Tokai Earthquake, or an incident that affects

environmental laws and regulations. However, various environmental

other operations, could delay or stop production or shipment activities.

regulations could also be revised and strengthened in the future.

Such prolonged delays and stoppages could have an adverse impact

Accordingly, any expenses necessary for continuous strict adherenceon Toyota Industries’ financial condition and business results.

to these environmental regulations could result in increased businesscosts and have an adverse impact on Toyota Industries’ financial
condition and business results.

Latent Risks Associated with International
Activities
Toyota Industries manufactures and sells products and provides

Alliances with Other Companies

services in various countries. Such unforeseen factors as social chaos,Aiming to expand its businesses, Toyota Industries engages in joint

including political disruptions, terrorism and wars, as well as changes

activities with other companies through alliances and joint ventures.

in economic conditions, could have an adverse impact on Toyota

However, a wildly fluctuating market trend or a disagreement between

Industries’ financial condition and business results.

Toyota Industries and its partners, owing to business, financial orother reasons, could prevent Toyota Industries from deriving theRetirement Benefit Liabilities

intended benefits of its alliances.

Toyota Industries’ employee retirement benefit expenses and liabilities
are calculated based on expected rates of return on pension assets

46

Toyota Industries Report 2010

incorporate discount rates and other factors. Therefore, differences
between actual results and assumptions as well as changes in the

Financial Section

as well as assumptions upon making actuarial calculations that

Toyota Industries’ Relationship to Toyota
Motor Corporation

assumptions could have a significant impact on recognized expenses

Due to historical reasons, Toyota Industries maintains closeand calculated liabilities in future accounting periods.

relationships with Toyota Motor Corporation (TMC) and Toyota Group
companies in terms of capital and business dealings.

Significant Accounting Policies andEstimates

Historical BackgroundToyota Industries’ financial statements are prepared in conformity

Toyoda Automatic Loom Works, Ltd.), established the Automobile

with accounting principles and practices generally accepted in

Department within the Company based on his resolve to manufacture

Japan. In preparing financial statements, management must makeJapanese-made automobiles. In 1937, the Automobile Department

estimates, judgments and assumptions that affect reported amounts

was spun off and became an independent company, Toyota Motorof assets and liabilities at fiscal year-end as well as revenues andCo., Ltd. (the present Toyota Motor Corporation).

In 1933, Kiichiro Toyoda, the eldest son of founder Sakichi
Toyoda and then Managing Director of Toyota Industries (thenexpenses during each fiscal year. Among Toyota Industries’ significant
accounting policies, the following categories require a considerable

Capital Relationshipdegree of judgment and estimation and are highly complex.

In light of this historical background, Toyota Industries and TMC havemaintained a close capital relationship. As of March 31, 2010, Toyota

Allowance for Doubtful Accounts

Industries holds 6.42% (201,195 thousand shares) of TMC’s total

To prepare for the risk of receivables becoming uncollectible, Toyota

shares issued. Likewise, as of the same date, TMC holds 24.61%

Industries estimates its allowance for doubtful accounts by utilizingof Toyota Industries’ total voting rights. Toyota Industries is a TMC

the percentage of historical experiences in credit losses for ordinary

affiliate accounted for by the equity method.

receivables and individually examining the feasibility of collection forreceivables that seem to be uncollectible. Evaluating the allowance for

Business Relationshipdoubtful accounts involves judgments made in accordance with the

Toyota Industries assembles certain cars and produces automobile

nature of the situation, and this allowance represents an essential andengines under consignment from TMC. Additionally, we sell a portion

crucial estimate—including future estimates of cash flow amountsof our other components and products directly or indirectly to otherand timing—that could change significantly. Based on currently

Toyota Group companies. In fiscal 2010, our net sales to TMC

available information, Toyota Industries’ management believes its

accounted for 43.6% of our consolidated net sales.

present allowance for doubtful accounts is sufficient. However, theneed to significantly increase allowance for doubtful accounts in theContributions to the Toyota Groupfuture could have an adverse impact on Toyota Industries’ businessAs a member of the Toyota Group, Toyota Industries aims toresults.

contribute to strengthening the competitiveness of TMC and otherToyota Group companies in such areas as quality, cost, delivery andAllowance for Retirement Benefits

technologies. Toyota Industries is confident that raising the Toyota

Calculations differ for retirement benefits, retirement benefit expenses

Group’s competitiveness will lead to increases in our sales to andand liabilities after employee retirement, as well as benefits forprofits from the Toyota Group, thereby contributing to raising Toyota

employees on leave of absence, because different assumptions are

Industries’ corporate value.

used at the time of calculation. Assumptions include such factors
as discount rates, amount of benefits, interest expenses, expected
rates of return on pension assets and mortality rates. The differencein amounts between these assumptions and actual results is
calculated cumulatively and amortized over future accounting
periods, and thus becomes an expense and is recognized as aliability in future accounting periods. Toyota Industries believes its
assumptions are reasonable. However, differences between actual
results or changes in the assumptions could have an impact onretirement benefits and retirement benefit expenses and liabilities
after employee retirement.

Toyota Industries Report 201047

Financial Section

Consolidated Balance Sheets
Toyota Industries Corporation
As of March 31, 2010 and 2009
Millions of yen

ASSETS
Current assets:
Cash and deposits

2010

2009

¥ 287,965 ¥ 169,743

Trade notes and accounts receivable (Note 8)

163,708

158,798

Short-term investments

71,391

58,838Merchandise and finished goods (Notes 4 and 8)

37,35844,237Work in process (Notes 4 and 8)

25,67230,500Raw materials and supplies (Notes 4 and 8)

25,31827,423

Deferred tax assets (Note 20)

17,182

16,600

Other current assets

47,30764,632

Allowance for doubtful accounts(3,103)(2,806)

672,801

567,967

Total current assets
Fixed assets:
Property, plant and equipment:
Buildings and structures (Notes 5 and 8)

169,991

182,214

Machinery, equipment and vehicles (Notes 5 and 8)

212,079

252,402

Tools, furniture and fixtures (Note 5)

21,84025,598Land (Note 8)

119,517

110,078

8,547

18,970531,977

589,264

Goodwill

72,745

107,072

Software

9,976

11,736

Total intangible assets

82,722

118,809

1,162,685

907,524

Long-term loans receivable

5,554

5,954

Deferred tax assets (Note 20)

10,429

11,578Other investments and other assets

123,278

126,534

(202)

(199)

1,301,744

1,051,391

1,916,444

1,759,464

Construction in progress
Total property, plant and equipment
Intangible assets:

Investments and other assets:
Investments in securities (Note 8)

Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets
The accompanying notes are an integral part of these financial statements.

48

Toyota Industries Report 2010

¥2,589,246 ¥2,327,432

Financial Section

Millions of yen

LIABILITIES AND NET ASSETS
Current liabilities:
Trade notes and accounts payable
Short-term loans payable (Note 8)
Commercial paper
Current portion of bonds
Accounts payable—otherAccrued income taxes
Deferred tax liabilities (Note 20)
Allowance for bonuses to directors and corporate auditors
Other current liabilities (Note 8)
Total current liabilities
Long-term liabilities:
Bonds (Note 6)Long-term loans payable (Notes 6 and 8)
Lease obligations (Notes 2, 3 and 6)
Deferred tax liabilities (Note 20)
Allowance for retirement benefits (Note 9)
Other long-term obligations
Total long-term liabilities
Total liabilities
Shareholders’ equity (Note 12):
Capital stock
Authorized — 1,100,000,000 shares
Issued— 325,840,640 shares as of March 31, 2010
		
325,840,640 shares as of March 31, 2009
Capital surplus
Retained earnings
Treasury stock
14,263,943 shares as of March 31, 2010
14,263,027 shares as of March 31, 2009

2010

2009

¥ 141,787 ¥ 104,658
46,241
63,187
9,575
26,35650,44632,072
13,14925,34915,014
7,570
316
249
310
214
158,100
154,720434,941

414,379

231,401
299,208
108,014351,00945,234
14,507

231,501
285,340
104,245
252,20944,05518,0291,049,375
1,484,316

935,382
1,349,762

80,46280,462

106,179
378,648(50,689)

106,180
412,294(50,672)

Total shareholders’ equity
514,601
548,264
Valuation and translation adjustments:
Valuation difference on available-for-sale securities
544,068
392,489
Deferred gains or losses on hedges(9)24Foreign currency translation adjustment(2,430)(10,048)
		Total valuation and translation adjustments
541,628
382,466
Subscription rights to shares
1,720
1,224
Minority interests
46,97845,715
Total net assets
1,104,929
977,670
Total liabilities and net assets¥2,589,246 ¥2,327,432

Toyota Industries Report 201049

Financial Section

Consolidated Statements of Income

Toyota Industries Corporation
For the years ended March 31, 2010 and 2009
Millions of yen

2010

2009

Net sales¥1,377,769 ¥1,584,252

Cost of sales (Note 13)

1,194,399

1,389,002

Gross profit

183,370

195,249

Sales commissions

6,814

10,287

Salaries and allowances

64,71675,426Retirement benefit expenses

1,953

2,012

Depreciation

8,151

8,734

Research and development expenses

19,482

23,610Other60,24881,80022,002(6,621)

Interest income

10,804

12,677

Dividends income

Selling, general and administrative expenses (Notes 13 and 18):

Operating income (loss)
Non-operating income:

15,29737,781Gain on sales of marketable securities

135

498

Equity in net earnings of unconsolidated subsidiaries and affiliated companies

744

–

7,413

8,356

Interest expenses(17,847)(19,770)

Loss on disposal of fixed assets(1,257)(4,131)–(3,130)

Other non-operating income
Non-operating expenses:

Equity in net losses of unconsolidated subsidiaries and affiliated companies
Other non-operating expenses
Ordinary income(5,535)(11,314)31,756

14,343(43,099)––(26,526)

Extraordinary losses (Note 14):
Losses on business restructuring of the Materials Handling Equipment Segment
Losses on impairment of property, plant and equipment due to a decrease in production volume
Losses of discontinuing production of designated electronic parts
Loss before income taxes and minority interests–(11,064)(11,343)(23,247)

Income taxes — current (Note 20)

13,3208,248

Income taxes — deferred (Note 20)

(438)

8,240

Income (loss) on minority interests in consolidated subsidiaries

2,048(6,968)(26,273) ¥(32,767)

Net loss¥Yen

Net loss per share — basic (Note 26)
Net loss per share — diluted (Note 26)
Net assets per share (Note 27)
Cash dividends per share
The accompanying notes are an integral part of these financial statements.

50

Toyota Industries Report 2010¥(84.33) ¥ (105.16)––

3,390.02

2,987.16

30.00

40.00

Financial Section

Consolidated Statements of Changes in Net Assets

Toyota Industries Corporation
For the years ended March 31, 2010 and 2009
Millions of yen

2010

Millions of yen

2010

2009

Shareholders’ equity		Capital stock

24

140

Net changes of items other than shareholders’ equity

(33)

(115)

Total changes of items during the period

(33)

(115)

Balance at the end of current period

(9)

24

Balance at the end of previous period

Balance at the end of previous period¥ 80,462¥  80,462

Balance at the end of current period

80,46280,462

Capital surplus
Balance at the end of previous period

106,180

106,184

Changes of items during the period

Foreign currency translation adjustment		

Changes of items during the period
Disposal of treasury stock

(0)

(4)

Balance at the end of previous period

Total changes of items during the period

(0)

(4)

Changes of items during the period

106,179

106,180

Balance at the end of current period
Retained earnings
Balance at the end of previous period
Effect of changes in accounting policies applied to412,294

466,780–(2,400)(10,048)

41,477

Net changes of items other than shareholders’ equity

7,618(51,525)

Total changes of items during the period

7,618(51,525)(2,430)(10,048)

382,466

794,171

Net changes of items other than shareholders’ equity

159,162(411,705)

Total changes of items during the period

159,162(411,705)

541,628

382,466

1,224

695

Net changes of items other than shareholders’ equity

496

528

Total changes of items during the period

496

528

1,720

1,224

45,71556,345

Net changes of items other than shareholders’ equity

1,263(10,630)

Total changes of items during the period

1,263(10,630)

46,97845,715

977,670–

1,453,996(2,400)

Balance at the end of current period
Total valuation and translation adjustments

  foreign subsidiaries

Balance at the end of previous period

Changes of items during the period

Changes of items during the period

Dividends from surplus(6,231)(19,318)

Decrease due to increase in consolidated subsidiaries(1,138)–Decrease due to decrease in consolidated subsidiaries(1)–(26,273)(32,767)

Net loss
Total changes of items during the period
Balance at the end of current period

Balance at the end of current period
Subscription rights to shares(33,646)(52,086)

Balance at the end of previous period

378,648412,294

Changes of items during the period(50,672)(50,644)

Treasury stock
Balance at the end of previous period
Changes of items during the period

Balance at the end of current period

Repurchase of treasury stock

(18)

(41)

Disposal of treasury stock

1

12

Balance at the end of previous period

(16)

(28)

Changes of items during the period(50,689)(50,672)

Total changes of items during the period
Balance at the end of current period
Total shareholders’ equity
Balance at the end of previous period
Effect of changes in accounting policies

2009

Deferred gains or losses on hedges		548,264

602,783–(2,400)Minority interests

Balance at the end of current period
Total net assets

   applied to foreign subsidiaries

Balance at the end of previous period

Changes of items during the period

Effect of changes in accounting policies applied to

Dividends from surplus(6,231)(19,318)

Decrease due to increase in consolidated subsidiaries(1,138)–Decrease due to decrease in consolidated subsidiaries(1)–

Dividends from surplus(6,231)(19,318)(26,273)(32,767)

Decrease due to increase in consolidated subsidiaries(1,138)–

Repurchase of treasury stock

(18)

(41)

Decrease due to decrease in consolidated subsidiaries(1)–

Disposal of treasury stock0

8(26,273)(32,767)(41)

Net loss

Total changes of items during the period
Balance at the end of current period

Changes of items during the period

Net loss(33,663)(52,118)

Repurchase of treasury stock(18)

514,601

548,264

Disposal of treasury stock08

160,922(421,807)

127,259(473,926)

Valuation and translation adjustments

Net changes of items other than shareholders’ equity

Valuation difference on available-for-sale securities

Total changes of items during the period
392,489752,553

Net changes of items other than shareholders’ equity

151,578(360,063)

Total changes of items during the period

151,578(360,063)

544,068

392,489

Balance at the end of previous period   foreign subsidiaries

Balance at the end of current period¥1,104,929 ¥   977,670

Changes of items during the period

Balance at the end of current period

The accompanying notes are an integral part of these financial statements.

Toyota Industries Report 201051

Financial Section

Consolidated Statements of Cash Flows

Toyota Industries Corporation
For the years ended March 31, 2010 and 2009
Millions of yen

Cash flows from operating activities:
Loss before income taxes and minority interests
Depreciation and amortization
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Interest and dividends income
Interest expenses
Equity in net (earnings) losses of unconsolidated subsidiaries and affiliated companies(Increase) decrease in receivables(Increase) decrease in inventories
Increase (decrease) in payables
Others, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes (paid) received
Net cash provided by operating activities
Cash flows from investing activities:
Payments for purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Payments for purchases of investment securities
Proceeds from sales of investment securities
Payments for acquisition of subsidiaries’ stock resulting in change in scope of consolidation
Payments for loans madeProceeds from collections of loans
Others, net
Net cash used in investing activities
Cash flows from financing activities:
Increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuances of bonds
Repayments of bonds
Payments for repurchase of treasury stocks
Cash dividends paid
Cash dividends paid to minority shareholders
Proceeds from payment by minority shareholders
Others, net
Net cash provided by (used in) financing activities
Translation adjustments of cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
The accompanying notes are an integral part of these financial statements.

52

Toyota Industries Report 2010

2010

2009

¥ (11,343)
110,119
36,902
84(26,101)
17,847(744)(777)
17,334
36,164
7,372
186,859
26,145(17,976)
8,424
203,452¥ (23,247)
125,543
35,8681,207(50,458)
19,7703,13061,8703,939(93,949)(8,141)75,53450,435(19,622)(40,577)
65,768(48,312)15,729(3,927)
197
(781)
(293)
2,003
(1,470)(36,855)(122,422)
10,991(4,982)
12,367(11)(4,465)
5,126(10,820)(114,217)(37,614)
27,820(1,915)50,000(33,286)(18)(6,231)(625)–(36,359)(38,230)
1,211
129,578
188,011¥317,590

6,947
126,178(10,420)
39,399(20,000)(41)(19,318)(1,310)575(1,038)120,971(5,795)66,727
121,284¥188,011

Financial Section

Notes to Consolidated Financial Statements
1. Basis of presenting consolidated financial statements:
The accompanying consolidated financial statements have been
prepared based on the accounts maintained by Toyota Industries
Corporation (the “Company”) and its consolidated subsidiaries(together, hereinafter referred to as “Toyota Industries”) in accordancewith the provisions set forth in the Corporate Law of Japan and the

Financial Instruments and Exchange Law, and in conformity withaccounting principles generally accepted in Japan, which are different
in certain respects from the application and disclosure requirements ofInternational Financial Reporting Standards.

2. Summary of significant accounting policies:(1) Consolidation

The consolidated financial statements include the accounts of theCompany and its 159 subsidiaries (40 domestic subsidiaries and 119
overseas subsidiaries, which are listed on pages 38 and 39) as ofMarch 31, 2010, and 160 subsidiaries (43 domestic subsidiaries and117 overseas subsidiaries) as of March 31, 2009.
For the year ended March 31, 2010, two subsidiaries were newly
added to the scope of consolidation and three companies were
excluded from the scope of consolidation because of liquidation andmergers as a result of reorganization.
For the year ended March 31, 2009, four subsidiaries were newly
added to the scope of consolidation and seven companies were
excluded from the scope of consolidation because of mergers andacquisitions as a result of reorganization.
The fiscal years of certain subsidiaries are different from the fiscal
year of the Company. Since the difference is not more than threemonths, the Company is using those subsidiaries’ statements for
those fiscal years, making adjustments for significant transactions
that materially affect the financial position or results of operations.
All significant inter-company transactions, balances and unrealized
profits within Toyota Industries have been eliminated.
A full portion of the assets and liabilities of the acquired
subsidiaries is stated at fair value as of the date of acquisition ofcontrol.
In June 2009, Toyota Industries Sweden AB changed thecompany name to Toyota Material Handling Europe AB.

(2) Equity method

Investments in 13 major affiliates in 2010 and 2009 are accounted forby the equity method of accounting.
For the year ended March 31, 2010, there were no changes in thescope of equity-method accounting.
For the year ended March 31, 2009, two companies were excluded
from the scope of equity-method accounting because of transfer to thescope of consolidation.
Some of the affiliates are not accounted for under the equity method
since their net income/losses, retained earnings and other financial
amounts are immaterial.
The major affiliates accounted for by the equity method are listed on
page 39.

(3) Translation of foreign currencies

Foreign currency denominated receivables and payables aretranslated into Japanese yen at the year-end exchange rates and theresulting transaction gains or losses are included in the consolidated
statements of income.
All asset and liability accounts of foreign subsidiaries and affiliates
are translated into Japanese yen at year-end exchange rates andall revenue and expense accounts are translated at prevailing fiscal
average rates.

(4) Cash and cash equivalents

Cash and cash equivalents include all highly liquid investments,
generally with original maturities of three months or less, that arereadily convertible to known amounts of cash and are so near
maturity that they present insignificant risk of changes in value
because of changes in interest rates.

(5) Short-term investments and investment in securities

Toyota Industries classifies securities into four categories by purposeof holding: trading securities, held-to-maturity securities, othersecurities and investments in affiliates. Toyota Industries did not havetrading securities or held-to-maturity securities as of March 31, 2010
and 2009.
Other securities with readily determinable fair values are stated atfair value based on market prices at the end of the year. Unrealized
gains and losses are included in “Valuation difference on available-forsale securities” as a separate component of net assets. Cost of salesof such securities is determined by the moving-average method.
Other securities without readily determinable fair values are stated atcost, as determined by the moving-average method.
Investments in affiliates are accounted for by the equity method(see Note 2 (2)).
Investments in affiliates not accounted for by the equity method
are stated at cost due to their insignificant effect on the consolidated
financial statements.

(6) Inventories

Inventories are stated mainly at cost determined by the movingaverage method (the values on the consolidated balance sheets arecalculated through the write-down method based on the deteriorationof profitability).

(7) Property, plant and equipment, and depreciation(Except for lease assets)

Property, plant and equipment are stated at cost. Depreciation
expenses of property, plant and equipment are computed mainly by
the declining-balance method for the Company and subsidiaries.
Significant renewals and additions are capitalized at cost. Repairs
and maintenance are charged to income as incurred.
In accordance with the revision of the Corporation Tax Act ofJapan, as a result of a review of the useful lives, Toyota Industries
revised the useful lives of tangible assets and applied the revisionfrom the consolidated fiscal year ended March 31, 2009.
As a result, operating income decreased by ¥5,824 million andordinary income and income before income taxes and minority
interests decreased by ¥5,843 million, respectively.

(8) Intangible assets and amortization

Amortization of intangible assets is computed using the straight-line
method. Software costs for internal use are amortized by the straightline method over their expected useful lives (mainly five years).

Toyota Industries Report 201053

Financial Section

Notes to Consolidated Financial Statements
Goodwill, if material, is amortized principally over less than 20
years on a straight-line basis, while immaterial goodwill is charged toincome as incurred.

(9) Lease transactions

The depreciation method of leased properties on finance leases thatare deemed to transfer the ownership of the leased properties tolessees is the same as those applied to properties owned by Toyota
Industries.
The depreciation method of leased properties on finance leases
other than those deemed to transfer the ownership of leased
properties to lessees is computed mainly by the straight-line method,which assumes zero residual value and the leasing term to be for theuseful life of the asset.
As for the finance leases other than finance leases deemed totransfer the ownership of leased properties to lessees, those thatcame into effect before March 31, 2008 (inclusive) will continue to beaccounted for by the former method (similar to the method applicableto ordinary operating leases).

(10) Method of accounting of deferred assets

As for bond issuance costs, the full amount is treated as an expenseat the time of payout.

(11) Allowances for doubtful accounts

Toyota Industries adopted the policy of providing an allowance for
doubtful accounts in an amount sufficient to cover possible losses
on collection by estimating individually uncollectible amounts andapplying to the remaining accounts a percentage determined bycertain factors such as historical collection experiences.

(12) Allowance for bonuses to directors and corporate
auditors
Bonuses to directors and corporate auditors are recorded on theaccrual basis with a related change to income.

(13) Allowance for retirement benefits

Toyota Industries accrues an amount which is considered to be
incurred in the period based on the estimated projected benefit
obligations and estimated pension assets at the end of the year. To
provide for the retirement benefits for directors, corporate auditorsand managing officers, an amount which is calculated at the end of
the year as required by an internal policy describing the retirement
benefits for directors, corporate auditors and managing officers is
accrued.

(14) Accounting standards for finance leasetransactions

As for the accounting standards for finance lease transactions, net
sales and cost of sales are recognized when the lease payments arereceived.

(15) Hedge accounting(a) Method of hedge accounting
Mainly the deferral method of hedge accounting is applied. In thecase of foreign currency forward contracts and foreign currency
option contracts, the hedged items are translated at contracted
forward rates if certain conditions are met.
As for the interest rate swap contracts, which meet therequirements of preferential accounting method, the preferential
accounting method is applied.

54

Toyota Industries Report 2010(b) Hedging instruments and hedged items
Hedging instruments: Derivatives instruments (foreign currency
forward contracts, foreign currency
option contracts, foreign currency swaps
and interest rate swaps)
Hedged items:
Risk of change in interest rate on borrowings,
receivables and payables and risk of change
in forward exchange rates on transactions
denominated in foreign currencies(borrowings, receivables and payables, andforecasted transactions)(c) Hedging policy
Hedging transactions are executed and controlled based on Toyota
Industries’ internal policy and Toyota Industries is hedging interest raterisks and foreign currency risks. Toyota Industries’ hedging activities
are reported periodically to a director responsible for accounting.
(d) Method used to measure hedge effectivenessHedge effectiveness is measured by comparing accumulatedchanges in market prices of hedged items and hedging instruments
or accumulated changes in estimated cash flows from the inceptionof the hedge to the date of measurements performed. Currently it isconsidered that there are high correlations between them.

(16) Consumption tax

The consumption tax under the Japanese Consumption Tax Law
withheld by Toyota Industries on sales of goods is not included in theamount of net sales in the accompanying consolidated statements
of income, and the consumption tax paid by Toyota Industries under
the law on purchases of goods and services, and expenses is notincluded in the related amount.

(17) Income taxes

The provision for income taxes is computed based on the pretax
income included in the consolidated statements of income. The
asset and liability approach is used to recognize deferred tax liabilities
and assets for the expected future tax consequences of temporary
differences between the carrying amounts and the tax bases of assets
and liabilities.
Valuation allowances are recorded to reduce deferred tax assets
when it is more likely than not that a tax benefit will not be realized.

(18) Net income per share

The computation of basic net income per share is based on theweighted-average number of outstanding shares of common stock.
The calculation of diluted net income per share is similar to thecalculation of basic net income per share, except that the weightedaverage number of shares outstanding includes the additional dilution
from potential common stock equivalents such as subscription rights
to shares. Cash dividends per share shown in the statements ofincome are the amounts applicable to the respective years.

Financial Section

3. Changes in accounting policies and adoption of new accounting standards:
For the year ended March 31, 2010
Accounting Standard for Construction Contracts

Effective from the fiscal year beginning April 1, 2009, Toyota Industries
applies Financial Accounting Standard No. 15 “Accounting Standard
for Construction Contracts” and its Implementation Guidance No.
18 “Guidance on Accounting Standard for Construction Contracts,”
both of which were issued on December 27, 2007 by the AccountingStandards Board of Japan. This modification does not have asignificant effect on the income (or loss) of the Company.

Partial Amendments to Accounting Standard for
Retirement Benefits (Part 3)

Effective from the fiscal year beginning April 1, 2009, Toyota Industries
applies Financial Accounting Standard No. 19 “Partial Amendments
to Accounting Standard for Retirement Benefits (Part 3),” which was
issued on July 31, 2008 by the Accounting Standards Board of Japan.
This modification has no effect on the income (or loss) of the Company.

For the year ended March 31, 2009
Accounting Standard for Measurement of Inventories

Effective from the fiscal year beginning from April 1, 2008, Toyota
Industries applies Financial Accounting Standard No. 9 “AccountingStandard for Measurement of Inventories” issued on July 5, 2006 by
the Accounting Standards Board of Japan.
With regard to the measurement method, inventories are statedmainly at cost determined by the moving-average method (the values
on the consolidated balance sheets are calculated through the writedown method based on the deterioration of profitability).
As a result, operating income, ordinary income and income before
income taxes and minority interests decreased by ¥692 million,
respectively. 			

Practical Solution on Unification of Accounting Policies
Applied to Foreign Subsidiaries for Consolidated
Financial Statements
Effective from the fiscal year beginning from April 1, 2008, Toyota
Industries applies Practical Issue Task Force No. 18 “Practical

Solution on Unification of Accounting Policies Applied to Foreign
Subsidiaries for Consolidated Financial Statements” issued on May
17, 2006 by the Accounting Standards Board of Japan.
As a result, operating income increased by ¥2,197 million,
ordinary income and income before income taxes and minority
interests increased by ¥2,213 million, respectively, and retained
earnings at the beginning of the consolidated fiscal year beginningfrom April 1, 2008 decreased by ¥2,400 million.

Accounting Standard for Lease Transactions

Effective from the fiscal year beginning from April 1, 2008, Toyota
Industries applies Financial Accounting Standard No. 13 “AccountingStandard for Lease Transactions” (issued by the AccountingStandards Board of Japan on June 17, 1993; latest revision, March
30, 2007) and Implementation Guidance No. 16 “Guidance on
the Accounting Standard for Lease Transactions” (issued by the
Accounting Standards Board of Japan on January 18, 1994; latest
revision, March 30, 2007). In accordance with the Standard and the
Guidance, finance leases other than those deemed to transfer theownership of leased properties to lessees are accounted for mainly
by a method similar to that applicable to ordinary sales transactions,instead of by the former method, which was similar to that applicableto ordinary operating leases.
As a result, operating income, ordinary income and income
before income taxes and minority interests increased by ¥608 million,
respectively.
As for finance leases other than finance leases deemed to transfer
the ownership of leased properties to lessees, those that came into
effect before March 31, 2008 (inclusive) will continue to be accounted
for by the former method (similar to the method applicable to ordinary
operating leases).

Classification Change in Consolidated Statement of
IncomeEffective from the fiscal year beginning April 1, 2008, rental incomeof fixed assets, which was listed as a separate component of nonoperating income, is included in other non-operating income because
the amount is immaterial. Rental income of fixed assets in fiscal 2009was ¥1,061 million.

4. Inventories:
Inventories as of March 31, 2010 and 2009 consist of the following:
Millions of yen

Merchandise and finished goods		
Raw materials		Work in process		
Supplies		
Total

2010
¥ 37,358
14,12725,672
11,190¥ 88,349

2009¥ 44,237
15,94130,500
11,482¥102,162

5. Property, plant and equipment:
Accumulated depreciation as of March 31, 2010 and 2009 is as follows:
Millions of yen

Buildings and structures		
Machinery, equipment and vehicles		Tools, furniture and fixtures		
Total

2010
¥ 196,985
569,604
86,215¥ 852,805

2009¥ 180,043
524,949
78,162¥ 783,154

Toyota Industries Report 201055

Financial Section

Notes to Consolidated Financial Statements

6. Long-term debt:(1) Long-term debt as of March 31, 2010 and 2009 consists of the following:
Millions of yen

2010
¥

–
20,00050,00030,00020,00020,00030,00013,85319,99326,0002,000
50,000311,939
123,591(63,177)(15,576)¥638,624

1.94% bonds due 2009 without collateral
1.91% bonds due 2010 without collateral
1.13% bonds due 2012 without collateral
1.03% bonds due 2012 without collateral
1.46% bonds due 2014 without collateral
1.01% bonds due 2010 without collateral
1.66% bonds due 2015 without collateral
0.50-2.65% medium-term notes due 2010-2014 without collateral
1.95% bonds due 2016 without collateral
1.72% bonds due 2018 without collateral
1.35% medium-term notes due 2014 without collateral
2.109% bonds due 2019 without collateralLong-term loans payable
Lease obligations
Less: current portion of long-term loans payable and bonds
Less: current portion of lease obligations
Total

2009
¥ 15,000
20,00050,00030,00020,00020,00030,00030,582
19,99226,0002,000–
294,005
115,537(40,737)(11,292)¥621,088(2) Annual maturities of long-term debt as of March 31, 2010 are as follows:
Millions of yen
Year ending March 31

Long-termloans payable
and bonds

2012
2013
2014
2015
2016 and thereafter
Total¥ 112,732
75,33061,55255,000225,993¥ 530,609

Lease obligations¥

36,81931,48523,84014,492
1,377¥ 108,014

Total¥ 149,552
106,816
85,39369,493
227,371¥ 638,624

7. Investments in affiliated companies:
Investments in affiliated companies as of March 31, 2010 and 2009 are as follows:
Millions of yen

Investments in securities (stock)
Investments and other assets (others)

2010¥ 10,964
4,440

2009
¥ 7,520
3,434

8. Assets pledged as collateral:(1) Assets pledged as collateral as of March 31, 2010 and 2009 are as follows:
Millions of yen

Investments in securities
Buildings and structures
Machinery, equipment and vehicles
Land
Merchandise and finished goods
Accounts receivable
Work in process
Raw materials and supplies
Total

2010
¥ 70,680
2,004
1,734
466
335
283
122
77
¥ 75,704

2009¥ 51,520
532
–
396
486
–
–
–
¥ 52,935(2) Secured liabilities as of March 31, 2010 and 2009 are as follows:
Millions of yen

Other current liabilities
Short-term loans payable
Long-term loans payable
Total

56

Toyota Industries Report 20102010
¥ 22,410
2,246
492¥ 25,149

2009¥ 23,056505
44¥ 23,606

Financial Section

9. Allowance for retirement benefits:
Allowance for retirement benefits including the allowance for retirement benefits to directors (including managing officers) for the years ended March
31, 2010 and 2009 is as follows:
Millions of yen

Allowance for retirement benefits to directors (including managing officers)2010¥ 3,7412009¥ 5,460

10. Contingent liabilities:
Toyota Industries is contingently liable for guarantees as of March 31, 2010 and 2009 as follows:
Millions of yen

Guarantees given by consolidated subsidiaries

2010
¥ 67

2009
¥ 134

11. Export discount bills:
Export discount bills as of March 31, 2010 and 2009 are as follows:
Millions of yen

Export discount bills

2010
¥ 314

2009
¥ 158

12. Net assets:
Under the Corporate Law of Japan, amounts equal to at least 10% of the sum of the cash dividends and other external appropriations paid by theCompany and its domestic subsidiaries must be set aside as a legal reserve until it equals 25% of capital stock. The legal reserve may be used
to reduce a deficit or may be transferred to capital stock taking appropriate corporate action. In consolidation, the legal reserves of the Company
and its domestic subsidiaries are accounted for as retained earnings. The year-end cash dividend is approved at the Ordinary General Meeting of
Shareholders of the Company held after the close of the fiscal year to which the dividend is applicable. In addition, interim cash dividends may be
paid upon resolution of the Board of Directors, subject to limitations imposed by the Corporate Law of Japan.

13. Research and development expenses:
Research and development expenses, which are included in selling, general and administrative expenses and manufacturing costs, amounted to¥26,826 million and ¥33,646 million for the years ended March 31, 2010 and 2009, respectively.

14. Impairment losses:
For the year ended March 31, 2010, Toyota Industries recorded extraordinary losses on business restructuring of the Materials Handling
Equipment Segment. The amount of impairment losses related to property, plant and equipment and goodwill was ¥36,902 million. Toyota
Industries also recorded extraordinary losses associated with restructuring expenses of closing a plant in Canada and an early retirement schemein France.
The total amount was ¥3,464 million in Japan, ¥5,075 million in the United States and Canada, ¥27,606 million in Europe and ¥755 million inAustralia.
By category of assets, impairment losses totaled ¥27,606 million for goodwill, ¥4,334 million for machinery, equipment and vehicles, ¥2,697
million for buildings and structures, ¥1,213 million for tools, furniture and fixtures, ¥452 million for software, ¥414 million for land and ¥183 million
for construction in progress.
The recoverable amount of assets is measured based on the value in use. The value in use is calculated by discounting the expected future
cash in-flow mainly using a 9% discount rate.
For the year ended March 31, 2009, Toyota Industries recorded impairment losses on property, plant and equipment for automobile parts of¥25,709 million due to a decrease in production volume. The total amount was ¥8,170 million in Japan and ¥17,023 million in the United States.
Also, Toyota Industries recorded impairment losses on equipment for materials handling equipment of ¥514 million due to a decrease inproduction volume in Japan.
Toyota Industries recorded impairment losses on property, plant and equipment of ¥10,159 million due to discontinuing production ofdesignated electronics parts in Japan.
By category of assets, impairment losses totaled ¥20,487 million for machinery, equipment and vehicles, ¥10,448 million for buildings andstructures, ¥4,247 million for construction in progress, ¥580 million for tools, furniture and fixtures and ¥102 million for software.
The recoverable amount of assets is calculated based on net selling price.

Toyota Industries Report 201057

Financial Section

Notes to Consolidated Financial Statements

15. Financial instruments:(1) Matters concerning financial instruments for the year ended March 31, 2010:(a) Policy for financial instruments
Toyota Industries borrows funds from financial institutions and issues corporate bonds to procure funds to meet its needs for long-term funding.
Toyota Industries also borrows from funds and issues commercial paper to procure funds to meet its needs for short-term working capital. Toyota
Industries manages its cash reserves as highly safe financial assets. The purpose of using derivative instruments is to reduce risk, not to obtain
earnings from exchanges or for speculative purposes.
(b) Contents and risk of financial instruments
Cash and deposits are subject to credit risk of financial institutions and foreign currency risk. Trade notes and accounts receivable are subject tocounterparty credit risk and foreign currency risk.
Loans receivable are subject to counterparty credit risk and foreign currency risk. With regards to foreign currency risk, Toyota Industries uses
derivative instruments (foreign currency forward contracts and foreign currency option contracts) for the amount of foreign currency trade assets (tradenotes and accounts receivable) offset by foreign currency trade liabilities (trade notes and accounts payable).
Short-term investments and investment in securities are subject to market risk and foreign currency risk.
Trade notes and accounts payable are subject to foreign currency risk. All of them are due within one year.
Loans payable, commercial paper, bonds and lease obligations are subject to foreign currency risk and interest rate risk.
Toyota Industries uses derivative instruments (foreign currency swaps and interest rate swaps) to cover such kinds of risks. The longest
redemption date is 12 years after the closing date on March 31, 2010.
Toyota Industries uses derivative instruments (foreign currency forward contracts, foreign currency option contracts, foreign currency swaps andinterest rate swaps) in order to hedge the above risk and derivative instruments are subject to credit risk of financial institutions.
As for the hedge accounting, the method, items, policy and evaluation method of measure of effectiveness are referred in Note 2 “(15) Hedge
accounting.”(c) Risk management of financial instruments
1) Management of credit risk (risk of non-execution of contract by counterparty)
In accordance with its treasury policy, Toyota Industries carries out regular monitoring of principal counterparties and strives to quickly ascertain andminimize concerns about collecting credits due to worsening financial and other conditions of counterparties. In using derivatives, to reduce credit
risk of financial institutions, Toyota Industries engages in transactions only with those financial institutions that have high credit ratings.
2) Management of market risk (foreign currency risk, interest rate risk, others)
In accordance with its treasury policy, in principle, Toyota Industries uses foreign currency forward contracts, foreign currency option contracts andforeign currency swaps to hedge foreign currency risk for each currency for its monetary credits and liabilities denominated in foreign currencies.
Toyota Industries uses interest swaps to hedge interest rate risk on monetary liabilities. Toyota Industries monitors the financial condition andreviews the valuations of short-term investments and investments in securities.
3) Management of financing-related liquidity risk (risk that payments cannot be made on payment date)In accordance with its treasury policy, Toyota Industries manages liquidity risk with cash reserves and commitment lines.
(d) Supplemental explanation of financial instruments
The fair value of financial instruments includes values based on market values as well as rationally calculated values when market values cannot be
determined. These calculated values could also conceivably change along with the adoption of different premises.

(2) Matters concerning the fair value of financial instruments:

Consolidated balance sheet amounts, fair values as well as respective differentials as of March 31, 2010 are as follows. Financial instruments forwhich ascertaining fair value is extremely difficult are not included. Refer to Note 2 regarding these financial instruments.
Millions of yen
Carrying
amount *1,*2

Fair value

Difference

Cash and deposits¥ 287,965¥ 287,965¥–
Trade notes and accounts receivable
160,608
160,607(0)
Short-term investments and investments in securities
			
Investments in affiliated companies
6,380
5,410
(969)
Other securities
1,207,913
1,207,913–
Long-term loans receivable
5,552
5,552
–
Total assets¥1,668,420¥1,667,449¥ (970)Trade notes and accounts payable¥ (141,787)¥ (141,787)¥–
Short-term loans payable(46,241)(46,241)–
Commercial paper(9,575)(9,575)–Current portion of bonds(50,446)(50,446)–
Bonds(231,401)(238,739)(7,338)Long-term loans payable(299,208)(307,370)(8,161)
Lease obligations(108,014)(108,146)(132)
Total liabilities¥ (886,674)¥ (902,306)¥(15,632)
Derivative transactions				Derivative instruments for which hedge accounting is not applied
¥
1,317
¥
1,317
¥
–
Derivative instruments for which hedge accounting is applied
(559)
(861)
(301)
Total derivative transactions
¥
757
¥
455
¥ (301)*1: Allowance for doubtful accounts is excluded from total assets.
*2: The figures for liabilities are indicated in parentheses.

58

Toyota Industries Report 2010

Financial Section

1. Methods for calculating fair value of financial instruments and matters concerning marketable securities and derivatives(Assets)(1) Cash and deposits
All deposits are short term and fair value approximates the carrying amount. Therefore, fair value for deposits is calculated at the carrying amount.
(2) Trade notes and accounts receivable
Fair value is calculated by discounting to net present value the amounts of receivables for each category of receivables for each specified time
period using interest rates that incorporate time (interest) risk and credit risk up to maturity.
(3) Short-term investments and investments in securities
The fair value of stocks in investments in affiliated companies is calculated based on prices listed on stock exchanges. Other securities arestocks, money management funds and negotiable certificates of deposit. The fair value of stocks in other securities is calculated based on prices
listed on stock exchanges. The fair value of money management funds and negotiable certificates of deposit approximates the carrying amount.
Therefore, fair value is calculated at the carrying amount.
Details regarding other securities are referred to in Note 16 “Marketable securities.”(4) Long-term loans receivable
The majority of these are loans with floating interest rates made to employees, with fair value approximating the carrying amount. Therefore, fairvalue is calculated at the carrying amount.
(Liabilities)(1) Trade notes and accounts payable
All notes and accounts payable are short term and fair value approximates the carrying amount. Therefore, fair value for notes and accounts
payable is calculated at the carrying amount.
(2) Short-term loans payable, (3) Commercial paper, (4) Current portion of bonds
These items are short term and fair value approximates the carrying amount. Therefore, fair value for these items is calculated at the carrying
amount.
(5) Bonds
Fair value is calculated by discounting to net present value the total of principal and interest using expected interest rates when newly borrowing
the same amount.
(6) Long-term loans payable
Fair value is calculated by discounting to net present value the total of principal and interest using expected interest rates when newly borrowing
the same amount.
Interest rate swaps that meet the requirement for the preferential accounting method are handled together with the aforementioned long-termloans payable. The fair value of interest rate swaps is included in the fair value of the aforementioned long-term loans payable. The fair value iscalculated by discounting expected future cash flow using interest rates when newly borrowing the same amount.
(7) Lease obligations
Fair value is calculated by discounting to net present value the total amount of lease payments using an expected interest rate when newly
undertaking the same lease transaction.
(Derivative transactions)
Details regarding derivative transactions are referred to in Note 17 “Derivative instruments.”
2. Financial instruments for which ascertaining fair value is extremely difficult
Millions of yen
Carrying
amountNon-listed stocks				Investments in affiliated companies			¥ 4,584
Other securities			
15,198
Total			¥19,783
Non-listed stocks are not included in “Short-term investments and investments in securities” because there are no market prices and ascertaining
fair value is extremely difficult.
3. Amounts of projected future redemptions after March 31, 2010 for monetary credits and liabilities as well as marketable securities withmaturities
Millions of yen
2011Year ending March 31¥287,965
160,541771¥449,279

Cash and deposits
Trade notes and accounts receivable
Long-term loans receivable
Total

2012-20152016-2020

¥

¥

¥

–
66
2,109
2,176

–
–
1,198
1,198

¥

Over 10 years

¥

–
–
1,472
¥1,472

4. Scheduled repayments of bonds, long-term loans payable, lease obligations and other interest-bearing debt after the consolidated settlement
date
Millions of yen
2011Year ending March 31

BondsLong-term loans payable
Lease obligations
Total

¥

¥

–
–
–
–

2012-20152016-2020¥105,407
199,208
106,637¥411,254¥125,993
100,000
1,376¥227,369

Over 10 years

¥

¥

–
–
0
0

Application of Accounting Standard for Financial Instruments

Effective from the fiscal year beginning April 1, 2009, Toyota Industries applies Financial Accounting Standard No. 10 “Accounting Standard for
Financial Instruments” and its Implementation Guidance No. 19 “Guidance on Disclosures about Fair Value of Financial Instruments,” both ofwhich were issued on March 10, 2008 by the Accounting Standards Board of Japan.

Toyota Industries Report 201059

Financial Section

Notes to Consolidated Financial Statements

16. Marketable securities:(1) As of and for the year ended March 31, 2010:(a) Other securities with readily determinable fair value as of March 31, 2010 are as follows:
Millions of yen

Securities with carrying amount exceeding acquisition cost:
StocksSubtotal
Securities with carrying amount not exceeding acquisition cost:
StocksOthersSubtotal
Total

Acquisition
cost

Carrying
amountDifference¥223,373
223,373¥1,130,531
1,130,531¥907,157
907,157

7,432
71,391
78,824¥302,197

5,991
71,391
77,382¥1,207,913(1,441)–(1,441)¥905,716

Non-listed stocks (total amount is ¥15,198 million in the Consolidated Balance Sheet) are not included in “Other securities” because there are nomarket prices and ascertaining fair value is extremely difficult.
Others in securities with the carrying amount not exceeding acquisition cost are money management funds and negotiable certificates of deposit.
(b) Other securities sold during the year ended March 31, 2010 are as follows:
Millions of yen
Proceeds Realized gains¥197

Realized losses

¥135

¥0

(2) As of and for the year ended March 31, 2009:(a) Other securities with readily determinable fair value as of March 31, 2009 are as follows:
Millions of yen

Securities with carrying amount exceeding acquisition cost:
StocksSubtotal
Securities with carrying amount not exceeding acquisition cost:
StocksSubtotal
Total

Acquisition
cost

Carrying
amountDifference¥215,764
215,764¥873,947
873,947¥658,183
658,183

15,17915,179¥230,943

10,785
10,785¥884,732(4,394)(4,394)¥653,788

Proceeds

Realized gains

Realized losses¥12,368¥498¥3(b) Other securities sold during the year ended March 31, 2009 are as follows:
Millions of yen(c) The carrying amount of securities (excluding held-to-maturity bonds which are included within securities with fair value) without readily
determinable fair values as of March 31, 2009 are as follows:
Millions of yen
Carrying
amountOther securities:				
Domestic unlisted stocks excluding over-the-counter stocks			
¥15,271
Money management funds			
40,338Negotiable certificates of deposit			
18,50060

Toyota Industries Report 2010

Financial Section

17. Derivative instruments:(1) Quantitative disclosure about derivatives for the year ended March 31, 2010
1) Derivative instruments for which hedge accounting is not applied(a) Foreign currency transactions as of March 31, 2010 are as follows:

Millions of yen
Category

Transactions other thanmarket transactions

Type

Notional
amountOver one year of
notional amount

Fair value

Net unrealized
gain/loss

Foreign currency forward contracts transactions					Buy JPY / Sell USD
¥ 119
¥–
¥ 120
¥ (1)
Buy JPY / Sell EUR
68
–
64
3
Buy JPY / Sell SEK
27
–
26
0
Buy SEK / Sell EUR
22,796–22,541254
Buy SEK / Sell USD
4,477
–
4,547
(70)
Buy SEK / Sell AUD
3,336
–
3,420
(83)
Buy SEK / Sell DKK
1,783
–
1,724
59
Buy SEK / Sell NOK
1,332
–
1,332
0
Buy SEK / Sell CHF
328
–
327
0
Buy SEK / Sell CZK
208
–
208
0
Buy SEK / Sell THB
206
–
215
(9)
Buy SEK / Sell CAD
118
–
127
(8)
Buy SEK / Sell HUF
28
–
28
0
Sell JPY / Buy USD
45
–
46
1
Sell SEK / Buy EUR
13,742–
13,735(7)
Sell SEK / Buy CAD
3,865
–
3,913
47
Sell SEK / Buy NOK
2,854
–
2,894
40
Sell SEK / Buy GBP
911
–
908
(3)
Sell SEK / Buy USD
637
–
635
(2)
Sell SEK / Buy PLN
243
–
249
6
Sell SEK / Buy DKK
135
–
134
(1)
Sell SEK / Buy CHF
130
–
131
1
Sell SEK / Buy HUF
79
–
80
0
Sell SEK / Buy CZK
5
–
4
(0)
Sell PLN / Buy EUR
49
–
48
(0)
Sell USD / Buy CAD
28
–
28
0
Sell EUR / Buy USD
46
–
45
0
Total
¥57,609¥–¥57,546¥226
Millions of yen

Category

Transactions other thanmarket transactions

Type

Notional
amountOver one year of
notional amount

Fair value

Net unrealized
gain/loss

Foreign currency swap transactions					Payment SEK / Receipt USD¥ 4,730¥–¥ 4,482¥ (248)
Payment JPY / Receipt USD
7,042
2,378
8,482
1,439
Total
¥11,772¥2,378¥12,964¥1,191

The fair value calculation method is based on the index price as of March 31, 2010.
(b) Interest rate transactions as of March 31, 2010 are as follows:
Millions of yen
Category

Transactions other thanmarket transactions

Type

Notional
amountOver one year of
notional amount

Fair value

Net unrealized
gain/loss

Interest rate swap transactions					Fixed rate payment / Floating rate receipt¥ 9,545¥4,734¥ 9,429¥(116)
Floating rate payment / Fixed rate receipt
923
923
938
15
Total
¥10,469¥5,657¥10,367¥(101)

The fair value calculation method is based on the index price as of March 31, 2010.

Toyota Industries Report 201061

Financial Section

Notes to Consolidated Financial Statements
2) Derivative instruments for which hedge accounting is applied
Millions of yen
Category

Type

Contents ofhedge

Notional
amountOver one yearof notionalamountFair value

Net unrealized
gain/loss

Evaluation
method–––––¥ 1,627
355
187
1,746
1,346

¥ (46)
(17)
(2)
61
49

By theexchange rate
on foreign
currency
market

–

<44>

(14)

–

<15>

(6)

–

<3>

(0)

–

<9>

(20)

–

<1>

(7)

–

<1>

(2)

148

575

(57)

148

¥ 5,915¥ (63)

Foreign currency forward contracts transactions
		 Buy JPY / Sell USD
		 Buy JPY / Sell AUD
		 Buy JPY / Sell EUR		 Buy SEK / Sell GBP		 Buy SEK / Sell EUR

Accounts
receivable¥ 1,580
338
184
1,807
1,396

¥

Foreign currency option contracts transactions
Sell
		 Call USD / Put JPY					Call AUD / Put JPY
Deferredhedge method					 Call EUR / Put JPY			Buy		 Put USD / Call JPY					 Put AUD / Call JPY					 Put EUR / Call JPY
			Interest rate swap transactions

1,860
<29>
358
<9>
199
<3>

Accounts
receivable

1,860
<29>
358
<9>
199
<3>
Long-term

632

Fixed rate payment / Floating rate receipt loans payable¥10,864

Total¥

By the priceon currency
option market

By the rate oninterest swap
market

The amounts indicated in brackets for foreign currency option contracts transactions refer to the option fee, and the related figures
for fair value and net unrealized gain/loss are also shown.
Millions of yen
Category

Type

Contents ofhedge

Notional
amountOver one yearof notionalamountNet unrealized
gain/loss

Evaluation
method

901
891

¥ 46
51

By theexchange rate
on foreign
currency
market

–

<17>

(2)

–

<9>

(3)

–

<0>

0

–

<1>

(13)

–

<0>

(5)

–

<0>

(0)

21,577

13,925

21,108(468)

By the rate oninterest swap
market

2,338
239
73

–
–
–

2,421
255
74

(83)
(15)
(1)

By theexchange rate
on foreign
currency
marketFixed rate payment / Floating rate receipt borrowings

25,00025,00024,698(301)

By the rate oninterest swap
marketTotal¥53,245¥38,925¥50,379¥(798)

Fair value

Foreign currency forward contracts transactions
		 Buy SEK / Sell GBP		 Buy SEK / Sell EUR

Accounts
receivable

¥

947
943

¥

–
–

¥

Foreign currency option contracts transactions
Sell
		 Call USD / Put JPY			Fair value hedge		Call AUD / Put JPY
accounting					 Call EUR / Put JPY			Buy		 Put USD / Call JPY					 Put AUD / Call JPY					 Put EUR / Call JPY
			Interest rate swap transactions
Net valuation method
using forward foreignexchange contracts

Accounts
receivable

744
<14>
255
<6>
62
<0>
744
<14>
255
<6>
62
<0>

Fixed rate payment / Floating rate receipt Lease assets

By the priceon currency
option market

Foreign currency forward contracts transactions
		 Buy JPY / Sell USD
		 Buy JPY / Sell AUD
		 Buy JPY / Sell EUR

Accounts
receivable

Interest rate swap transaction
Preferential accounting
method of interest rate
swap transactions

Long-term

The amounts indicated in brackets for foreign currency option contracts transactions refer to the option fee, and the related figures
for fair value and net unrealized gain/loss are also shown.

62

Toyota Industries Report 2010

Financial Section(2) Quantitative disclosure about derivatives for the year ended March 31, 20091) Qualitative disclosure about derivatives(a) Contents of derivative instruments into which Toyota Industries entered, policy with respect to entering into derivative instruments and purposeof using derivative instruments:
Toyota Industries uses foreign currency forward contracts, foreign currency swaps and foreign currency option contracts to hedge foreign
currency risks on transactions denominated in foreign currencies (borrowings, receivables and payables, and forecasted transactions).
Toyota Industries also uses interest rate swaps agreements to reduce interest rate risks on borrowings, receivables and payables.
The purpose of using derivative instruments is to reduce risk, not to obtain earnings from exchanges or for speculative purposes.
(b) Contents of risks related to derivative instruments:
Interest rate swaps, foreign currency forward contracts and foreign currency option contracts into which Toyota Industries entered have risksof fluctuations in interest rates and in foreign currency exchange rates. Due to the fact that counterparties to Toyota Industries represent major
financial institutions which have high creditworthiness, Toyota Industries believes that the overall credit risk related to its financial instruments is
insignificant.
(c) Controls in place over transactions handling derivative instruments:
Hedging transactions are executed and controlled based on Toyota Industries’ internal policy, and Toyota Industries’ hedging activities arereported periodically to a director responsible for accounting.
2) Quantitative disclosure about derivatives(a) Foreign currency transactions as of March 31, 2009 are as follows:
Millions of yen
Category

Transactions other thanmarket transactions

Type

Notional
amountOver one year of
notional amount

Fair value

Net unrealized
gain/loss

Foreign currency swap transactions					Payment SEK / Receipt USD¥16,892¥4,977¥14,220¥(2,671)
Payment JPN / Receipt USD¥12,278¥7,410¥13,723¥ 1,444

The fair value calculation method is based on the index price as of March 31, 2009.
The derivative instruments to which hedge accounting is applied were excluded from disclosure.
(b) Interest rate transactions as of March 31, 2009 are as follows:
Millions of yen
Category

Transactions other thanmarket transactions

Type

Notional
amountOver one year of
notional amount

Fair value

Net unrealized
gain/loss

Interest rate swap transactions					Fixed rate payment / Floating rate receipt¥13,740¥9,237¥13,508¥(232)
Floating rate payment / Fixed rate receipt
¥ 971
¥ 971
¥ 980
¥ 9

The fair value calculation method is based on the index price as of March 31, 2009.
The derivative instruments to which hedge accounting is applied were excluded from disclosure.

18. Retirement benefits:(1) Outline of retirement benefit plans:
The Company and its domestic subsidiaries maintain tax-qualified pension plans, lump-sum indemnities plans and welfare pension fund plans,
all of which are non-contributory defined benefit pension plans. In addition, certain foreign subsidiaries maintain non-contributory defined benefit
pension plans.
Since 1987, the Company has been transferring the covering percentages of its pension plan from its lump-sum indemnities plan to its taxqualified pension plan. As of March 31, 2010 and 2009, its tax-qualified pension plan covers 50% of total plans. Also, the Company establishedan employee retirement benefit trust. In April 2003, the Company transferred a portion of the lump-sum indemnities plan to a defined contribution
pension plan.

(2) Components of allowance for retirement benefits as of March 31, 2010 and 2009 are as follows:
Millions of yen

Benefit obligation		
Plan assets		
Unfunded benefit obligation		
Unrecognized actuarial gains or losses
Unrecognized loss in prior service obligation
Net amount recognized on the balance sheets		Prepaid pension expenses		
Allowance for retirement benefits		

2010¥(152,615)
92,936(59,678)
19,953(186)(39,911)1,580¥ (41,492)

2009¥(139,954)
75,012(64,941)
30,491(163)(34,612)3,982¥ (38,595)

Certain subsidiaries use the simplified method to determine benefit obligations.
Prepaid pension expenses are included in other investments and other assets.

Toyota Industries Report 201063

Financial Section

Notes to Consolidated Financial Statements(3) Components of retirement benefit expenses for the years ended March 31, 2010 and 2009 are as follows:
Millions of yen

Service cost		
Interest cost		
Expected return on plan assets		
Amortization of prior service obligation		
Amortization of unrecognized actuarial gains or losses
Retirement benefit expenses		2010¥ 8,968
4,111(2,673)36
2,150¥12,593

2009¥7,794
3,869(3,121)
57
638¥9,238Retirement expenses of subsidiaries which adopted the simplified method are included in service cost.

(4) Assumptions used for calculation of retirement benefits for the years ended March 31, 2010 and 2009 are as
follows:
2010

2009

Method of attribution of estimated retirement benefits to periods of employee service:			Straight-line method			Discount rate
2.00%
2.00%
Expected return on plan assets
3.00%
3.00%
Amortization of prior service obligation
6–11 years 6–11 years — Straight-line method over theremaining service period of			
employees
			Amortization period of unrecognized actuarial gains or losses
20 years
20 years — Straight-line method over the

average remaining service periodof employees(5) Plan assets relating to welfare pension fund under multiemployer pension plan:

Information regarding the welfare pension fund under multiemployer plans as of March 31, 2010 is as follows.
The Japan Society of Industrial
Machinery Manufacturers’ welfare
Other welfare pension funds
pension fund
As of March 31, 2009			
Plan assets¥ 72,130 million¥118,423 million		
Estimated benefit obligation
104,869 million
172,737 million
Variance¥ (32,739 million)¥ (54,313 million)
As of March 31, 2010			
Toyota Industries Group contribution to welfare pension plan
6.01%
4.66%
The Japan Society of Industrial
Machinery Manufacturers’ welfare
pension fund
Other welfare pension funds
As of March 31, 2008			
Plan assets¥ 83,238 million¥150,411 million		
Estimated benefit obligation
104,244 million
178,666 million
Variance¥ (21,006 million)¥ (28,254 million)
As of March 31, 2009			
Toyota Industries Group contribution to welfare pension plan
5.59%
4.61%

19. Stock options:(1) Stock option expenses recorded in the fiscal year and class of options
Millions of yen

Selling, general and administrative expenses

2010
¥604

2009
¥575

(2) The amount recorded as a profit because of forfeitures of stock option rights
Millions of yen

2010
¥108

64

Toyota Industries Report 2010

2009
¥ 46

Financial Section(3) Stock option details, number of stock options and state of fluctuation
1) Stock option details

2010

2009

2008

Company name

The Company

The Company

The Company

Position and number ofgrantees

Directors: 14
Managing officers and employees: 153

Directors: 17
Managing officers and employees: 159

Directors: 16
Managing officers and employees: 159

Class and number of shares*

1,157,000 shares of common stock

1,360,000 shares of common stock

830,000 shares of common stock

Date of issue

August 3, 2009

August 1, 2008

August 1, 2007

Same as left

Same as left

2. Other conditions of exercise shall be decided
as prescribed by the Contract for Allotment of
Subscription Rights to Shares concluded by
the Company and grantee in accordance withresolutions at the General Meeting of Shareholders
and resolutions on the issue of subscription rights
to shares by the Board of Directors.

Same as left

Same as left

3. In the case where grantee becomes no longer
applicable to the conditions of exercise, thegrantee immediately loses subscription rights toshares and must return the rights to the Company
without consideration.

Same as left

Same as left

Periods that grantees must
provide service in return forstock options

From August 3, 2009 to July 31, 2011

From August 1, 2008 to July 31, 2010

From August 1, 2007 to July 31, 2009

Periods that stock subscription
rights are to be exercised

From August 1, 2011 to July 31, 2015

From August 1, 2010 to July 31, 2014

From August 1, 2009 to July 31, 2013

Company name

The Company

The Company

The Company

Position and number ofgrantees

Directors: 17
Managing officers and employees: 152

Directors: 30
Employees: 134

Directors: 30
Employees: 135

Class and number of shares*

802,000 shares of common stock

791,000 shares of common stock

775,000 shares of common stock

Date of issue

August 1, 2006

August 1, 2005

August 2, 2004

1. Grantee must be employed as a director, managing
officer or regular employee of the Company at thetime of exercise. However, this does not apply if nomore than 18 months have elapsed after retirement or
resignation from the Company.

Same as left

Same as left

Same as left

Same as left

1. Grantee must be employed as a director,
managing officer or regular employee of theCompany at the time of exercise. However, thisdoes not apply if no more than 18 months haveelapsed after retirement or resignation from theCompany.

Condition of settlement ofrights2007

Condition of settlement ofrights

2. Other conditions of exercise shall be decided asprescribed by the Contract for Allotment of Subscription
Rights to Shares concluded by the Company andgrantee in accordance with resolutions at the General
Meeting of Shareholders and resolutions on the issue ofsubscription rights to shares by the Board of Directors.

2006

2005

Periods that grantees must
provide service in return forstock options

From August 1, 2006 to July 31, 2008

From August 1, 2005 to June 30, 2007

From August 2, 2004 to June 30, 2006

Periods that stock subscription
rights are to be exercised

From August 1, 2008 to July 31, 2012

From July 1, 2007 to June 30, 2011

From July 1, 2006 to June 30, 2010

*Number of options granted by class are listed as number of shares.

2) Number of stock options and state of fluctuation
Stock options are those outstanding in the fiscal year and are listed as the number of shares.
(a) Number of stock options
Non-exercisable stock options
2010
2009
Stock options outstanding at the end of the previous fiscal year
– 1,358,000
Stock options granted
1,157,000–
Forfeitures––
Conversion to exercisable stock options––
Stock options outstanding at the end of the fiscal year
1,157,000 1,358,000(shares)

2008
828,000––
828,000
–

2007
–
–
–
–
–

2006
–
–
–
–
–

2005
–
–
–
–
–

Toyota Industries Report 201065

Financial Section

Notes to Consolidated Financial Statements
Exercisable stock options
Stock options outstanding at the end of the previous fiscal year
Conversion from non-exercisable stock options
Stock options exercised
Forfeitures
Stock options outstanding at the end of the fiscal year

(shares)

2010
–
–
–
–
–

2009
–
–
–
–
–

2008
–
828,000–
72,000756,000

2010¥2,570–581

2009¥3,410–421

2008¥5,866–682

2007743,000––
78,000665,000

2006
130,500––
10,000120,500

2005
12,000––2,000
10,0002006¥3,306––2005¥2,652––

2010
32.47%
4 years¥40/share
0.600%

2009
24.63%
4 years¥60/share
1.000%(b) Price of options
Exact yen amounts

Paid-in value
Average market price of the stock at the time of exercise
Fair value of options on grant date2007
¥4,642–759(4) Methods for estimating fair value of stock options

The methods for estimating fair value of stock options granted for fiscal 2010 and 2009 are as follows:(a) Valuation methods used: Black-Scholes model(b) Principal basic values and estimation methods
Share price fluctuations *1
Projected remaining period *2
Projected dividend *3
Non-risk interest rate *4*1: Computed based on actual share prices during a four-year period (from August 2005 to July 2009) and (from August 2004 to July 2008)*2: Because of a lack of accumulated data and difficulty in making rational estimates, it is assumed the rights are exercised at the midpoint of the exercise period.
*3: For fiscal 2010, based on the year-end dividend for the fiscal year ended March 31, 2009; For fiscal 2009, based on the year-end dividend for the fiscal year ended
March 31, 2008 and the estimated interim dividend on the grant date

*4: Yields on government bonds for the period corresponding to the projected remaining period(5) Method for estimating the number of confirmed stock option rights

Specifically, because of the difficulty in rationally estimating the number of expired rights in the future, a method has been adopted that reflects
actual past expirations.

20. Income taxes:(1) The significant components of deferred tax assets and liabilities as of March 31, 2010 and 2009 are as follows:
Millions of yen

Deferred tax assets:
Allowance for retirement benefits
Depreciation
Net operating loss carry-forwards for tax purposes
Accrued expenses
Securities
Trade receivables
Other
Subtotal
Less: valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Other securities
Depreciation
Land
Reserve for advanced depreciation of non-current assets
Reserve for special depreciation
Other
Total deferred tax liabilities
Net deferred tax liabilities

2010

2009

17,33915,628
8,949
6,988
5,036
1,839
19,49075,271(28,696)
46,574¥ 16,509
14,683
8,833
6,520
3,791
1,316
18,577
70,232(25,348)
44,883(361,032)(2,258)
(562)
(456)
(288)
(5,689)(370,288)¥ (323,714)(260,677)(2,307)
(562)
(509)
(406)
(4,700)(269,164)¥(224,280)¥

Net deferred tax liabilities consist of the following components on the consolidated balance sheets.
Millions of yen

Current assets — deferred tax assets
Investments and other assets — deferred tax assets
Current liabilities — deferred tax liabilities
Long-term liabilities — deferred tax liabilities
Net deferred tax liabilities
66

Toyota Industries Report 20102010
¥ 17,182
10,429(316)(351,009)¥(323,714)

2009¥ 16,600
11,578(249)(252,209)¥(224,280)

Financial Section(2) Reconciliations of differences between the statutory rate of income taxes and the effective rate of income taxes
for the years ended March 31, 2010 and 2009 are as follows:
Statutory rate of income taxes
Addition (reduction) in taxes resulting from:
Dividends income and others permanently not recognized as taxable income
Other
Effective rate of income taxes

2010
39.9%

2009
39.9%

–
–
39.9%

–
–
39.9%

Toyota Industries eliminated the line item for the year ended March 31, 2010 because it recorded a loss before income taxes and minority
interests.

21. Leases:(1) Finance leases

As for finance leases other than finance leases deemed to transfer the ownership of leased properties to lessees, those that came into effectbefore March 31, 2008 (inclusive) will continue to be accounted for by the former method (similar to the method applicable to ordinary operatingleases).
1) Finance leases (as a lessee)(a) Pro forma information regarding the leased properties such as acquisition cost and accumulated depreciation, which are not reflected in theaccompanying consolidated balance sheets under finance leases as of March 31, 2010 and 2009 are as follows:
Millions of yen

Buildings and structures:

Acquisition cost equivalents
Accumulated depreciation equivalents
Buildings and structures net balance equivalents
Machinery, equipment and vehicles:
Acquisition cost equivalents
Accumulated depreciation equivalents
Machinery, equipment and vehicles net balance equivalents
Tools, furniture and fixtures:
Acquisition cost equivalents
Accumulated depreciation equivalents
Tools, furniture and fixtures net balance equivalents
Software:Acquisition cost equivalents
Accumulated depreciation equivalents
Software net balance equivalents		
Total net leased properties		

2010
¥ 245
178
66
¥7,9804,696
3,283¥9,761
6,742
3,018
¥ 100
63
36
¥6,405

2009
245
137
107
¥11,568
6,930
4,638¥12,172
7,081
5,090
¥ 107
49
57
¥ 9,893¥

Acquisition cost equivalents include the imputed interest expense portion because the percentage which is computed by dividing future minimum
lease payments by total balance of property, plant and equipment at year-end is immaterial.
(b) Pro forma information regarding future minimum lease payments as of March 31, 2010 and 2009 is as follows:
Millions of yen

Due within one year
Due after one year
Total

2010
¥3,061
4,641¥7,7022009¥ 4,421
7,801¥12,222

The amount equivalent to future minimum lease payments as of the end of the year includes the imputed interest expense portion because thepercentage which is computed by dividing future minimum lease payments by total balance of property, plant and equipment at year-end isimmaterial.
(c) Total lease payments and pro forma depreciation expenses for the years ended March 31, 2010 and 2009 are as follows:
Millions of yen

Lease payments
Pro forma depreciation expenses

2010¥3,606¥3,606

2009¥4,918¥4,918Pro forma depreciation expenses, which are not reflected in the accompanying consolidated statements of income, are computed mainly by
the straight-line method, which assumes zero residual value and leasing term to be useful lives for the years ended 2010 and 2009, and areequivalent to the amount of total lease payments of the above.

Toyota Industries Report 201067

Financial Section

Notes to Consolidated Financial Statements
2) Finance leases (as a lessor)(a) Information regarding leased properties such as acquisition cost and accumulated depreciation under finance leases as of March 31, 2010
and 2009 is as follows:
Millions of yen

2010
2009
Machinery and equipment:			
¥7,865Acquisition cost
¥6,302
Accumulated depreciation
5,541
6,220
Total net leased property¥ 761¥1,645(b) Pro forma information regarding future minimum lease income as of March 31, 2010 and 2009 is as follows:
Millions of yen

Due within one year
Due after one year
Total

2010
¥1,651
1,016¥2,6672009¥2,072
2,961¥5,033Future minimum lease income under finance leases include the imputed interest income portion because the percentage which is computed by
dividing the total of future minimum lease income and estimated residual value by the total of future minimum lease income and estimated residual
value and the balance of operating receivables at the year-ends is immaterial.
(c) Total lease payments to be received and depreciation expenses for the years ended March 31, 2010 and 2009 are as follows:
Millions of yen

Total lease payments to be received
Depreciation expenses

2010¥1,793951

2009¥2,157
1,695(2) Operating leases

1) Operating leases (as a lessee)
Pro forma future lease payments under operating leases as of March 31, 2010 and 2009 are as follows:
Millions of yen

Due within one year
Due after one year
Total

2010
¥ 9,069
34,148¥43,2172009¥ 8,818
34,229¥43,048

2) Operating leases (as a lessor)
Pro forma information regarding future minimum rentals under operating leases as of March 31, 2010 and 2009 is as follows:
Millions of yen

Due within one year
Due after one year
Total

68

Toyota Industries Report 20102010
¥19,491
29,056¥48,547

2009¥17,187
28,385¥45,572

Financial Section

22. Changes in net assets:(1) Common stock outstanding for the years ended March 31, 2010 and 2009:

sharesBalance at March 31, 2008
Increase
Decrease
Balance at March 31, 2009
Increase
Decrease
Balance at March 31, 2010

325,840,640––
325,840,640––
325,840,640(2) Treasury stock outstanding for the years ended March 31, 2010 and 2009:

sharesBalance at March 31, 2008
Increase due to purchase of odd stock
Decrease due to exercise of stock options
Balance at March 31, 2009
Increase due to purchase of odd stock
Decrease due to sale of odd stock
Balance at March 31, 2010

14,251,070
15,557(3,600)14,263,027
7,277
(361)
14,269,943(3) Subscription rights to shares outstanding for the years ended March 31, 2010 and 2009:
Millions of yen

2010¥1,720

The Company

2009¥1,224(4) Dividends(a) Dividends paid for the year ended March 31, 2010
Resolutions

Ordinary General Meeting of
Shareholders held on June 19, 2009
Board of Directors meeting held on
October 30, 2009

Total dividends

Dividends per share

Millions of yen

Yen

Common stock¥3,115

Common stock

3,115

Class of shares

Record date

Effective date¥10

March 31, 2009

June 22, 200910

September 30,
2009

November 26,2009(b) Dividends with a record date in the fiscal year ended March 31, 2010 for which the effective date falls in the following fiscal year
Resolutions

Ordinary General Meeting of
Shareholders held on June 23, 2010

Class of shares

Common stock

Total dividends
Millions of yen¥6,231

Source ofdividends

Dividends per share

Retainedearnings¥20

Yen

Record date

Effective date

March 31, 2010

June 24, 2010

Record date

Effective date(c) Dividends paid for the year ended March 31, 2009
Resolutions

Ordinary General Meeting of
Shareholders held on June 20, 2008
Board of Directors meeting held on
October 30, 2008

Total dividends

Dividends per share

Millions of yen

Yen

Common stock¥9,970¥32

March 31, 2008

June 23, 2008

Common stock

9,347

30

September 30,
2008

November 26,
2008

Class of shares(d) Dividends with a record date in the fiscal year ended March 31, 2009 for which the effective date falls in the following fiscal year
Resolutions

Ordinary General Meeting of
Shareholders held on June 19, 2009Class of shares

Common stock

Total dividends
Millions of yen¥3,115

Source ofdividends

Dividends per share

Retainedearnings¥10

Yen

Record date

Effective date

March 31, 2009

June 22, 2009

Toyota Industries Report 201069

Financial Section

Notes to Consolidated Financial Statements

23. Subsequent events:
There were no subsequent events for the year ended March 31, 2010.
In accordance with a resolution of the Board of Directors meeting held on February 19, 2009, the Company issued the 18th unsecured bond as
follows:(1) Total amount of bonds to be issued(2) Issue price(3) Date of payment(4) Date of maturity(5) Interest rate(6) Redemption price(7) Appropriation of the raised fund

50,000 million yen
100 yen (par issuance for the stated value of 100 yen)
April 22, 2009
March 20, 20192.109% per annum
100 yen for the stated value of 100 yen
Allotted for redemption of bonds and capital investment of the Company

24. Segment information:(1) Business segments

As of and for the years ended March 31, 2010 and 2009:
Millions of yen

Sales:
Automobile
Outside customer sales
Inter-segment transactions

2010

2009

¥ 778,356
12,810791,166¥ 755,924
18,465774,389431,619
999
432,618

639,656
3,931
643,587

108,596
5,685
114,282

114,825
6,927
121,753

20,87857
20,93629,55646
29,60338,317
10,301
48,6191,407,623(29,853)¥1,377,769

44,28921,531
65,821
1,635,154(50,902)¥1,584,252¥ 767,503
442,168
108,987
22,77244,647(30,313)¥1,355,767¥ 785,894
639,816
118,851
31,662
65,867(51,218)¥1,590,874¥¥

Materials Handling Equipment
Outside customer sales
Inter-segment transactions
Logistics
Outside customer sales
Inter-segment transactions
Textile Machinery
Outside customer sales
Inter-segment transactions
Others
Outside customer sales
Inter-segment transactions
Subtotal
Elimination of inter-segment transactions
Total
Operating costs and expenses:
Automobile
Materials Handling Equipment
Logistics
Textile Machinery
OthersElimination of inter-segment transactions
Total
Operating income (loss):
Automobile
Materials Handling Equipment
Logistics
Textile Machinery
OthersElimination of inter-segment transactions
Total

70

Toyota Industries Report 2010¥

23,663(9,549)5,294(1,836)
3,971
459
22,002¥(11,504)
3,770
2,901
(2,058)(46)
315(6,621)

Financial Section

Millions of yen

Assets:Automobile
Materials Handling Equipment
Logistics
Textile Machinery
OthersCorporate or elimination of inter-segment transactions
Total
Depreciation and amortization:
Automobile
Materials Handling Equipment
Logistics
Textile Machinery
OthersCorporate or elimination of inter-segment transactions
Total
Impairment losses:
Automobile
Materials Handling Equipment
Logistics
Textile Machinery
OthersCorporate or elimination of inter-segment transactions
Total
Capital expenditures:
Automobile
Materials Handling Equipment
Logistics
Textile Machinery
OthersCorporate or elimination of inter-segment transactions
Total

2010

2009

¥ 346,068
500,652
190,745
14,03756,187
1,481,555¥2,589,246¥ 354,661
580,945
192,977
8,959
74,842
1,115,047¥2,327,432¥

50,08545,958
10,735
1,032
2,306
–
¥ 110,119¥¥–
36,902––––36,902¥

14,98429,908
6,963
72
1,104
–
53,033¥¥¥¥58,19551,291
10,098
1,264
4,692
–
¥ 125,543¥

25,194514––
10,159–35,86864,26857,083
14,543606
2,269–¥ 138,770

1. Business segments are divided by the type and nature of the product.
2. Main products of each segment are as follows:
Fiscal 2010
Automobile.................................. Vehicles, diesel and gasoline engines, car air-conditioning compressors, foundry parts, electronics components
Materials Handling Equipment..... Lift trucks, warehouse trucks, automated storage and retrieval systems, aerial work platforms
Logistics...................................... Land transportation services, cash collection and delivery and cash proceeds management services, data storage,
management, collection and delivery services
Textile Machinery......................... Weaving machinery, spinning machinery
Others......................................... Semiconductor package substrates
Fiscal 2009
Automobile.................................. Vehicles, diesel and gasoline engines, car air-conditioning compressors, foundry parts, electronics components
Materials Handling Equipment..... Lift trucks, warehouse trucks, automated storage and retrieval systems, aerial work platforms
Logistics...................................... Land transportation services, cash collection and delivery and cash proceeds management services, data storage,
management, collection and delivery services
Textile Machinery.......................... Weaving machinery, spinning machinery
Others......................................... Semiconductor package substrates
3. Corporate assets included in corporate or elimination of inter-segment transactions consist mainly of cash and cash equivalents, short-term
investments and investments in securities held by the Company. Corporate assets were ¥1,536,600 million and ¥1,182,062 million as of March
31, 2010 and 2009, respectively.
4. Effective from the consolidated fiscal year ended March 31, 2009, the Company applies Practical Issues Task Force No. 18 “Practical Solution
on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements” issued on May 17, 2006 by
the Accounting Standards Board of Japan. As a result, operating income increased by ¥2,197 million in the Materials Handling Equipment
Segment.
5. In accordance with the revision of the Corporation Tax Act of Japan, Toyota Industries revised the useful lives of tangible assets and appliedthem from the consolidated fiscal year ended March 31, 2009. As a result, operating income decreased by ¥5,008 million in the Automobile
Segment, ¥388 million in the Materials Handling Equipment Segment, ¥3 million in the Logistics Segment and ¥424 million in the Others
Segment.

Toyota Industries Report 201071

Financial Section

Notes to Consolidated Financial Statements(2) Geographical segments

As of and for the years ended March 31, 2010 and 2009:
Millions of yen

Sales:
Japan
Outside customer sales
Inter-segment transactions

2010

2009

¥ 995,264
80,763
1,076,027¥1,066,635
93,3891,160,024

137,038967
138,005

193,884
1,875
195,760

200,556
4,243
204,800

272,108
6,087
278,195

44,9104,642
49,552
1,468,386(90,617)¥1,377,769

51,624
6,139
57,763
1,691,744(107,491)¥1,584,252¥1,046,048
139,480
211,932
46,992(88,687)¥1,355,767¥1,161,639
200,496
282,153
55,675(109,089)¥1,590,874¥¥

North America
Outside customer sales
Inter-segment transactions
EuropeOutside customer sales
Inter-segment transactions
Others
Outside customer sales
Inter-segment transactions
Subtotal
Elimination of inter-segment transactions
Total
Operating costs and expenses:
Japan
North America
EuropeOthersElimination of inter-segment transactions
Total
Operating income (loss):Japan
North America
EuropeOthersElimination of inter-segment transactions
Total
Assets:Japan
North America
EuropeOthersCorporate or elimination of inter-segment transactions
Total

¥

29,979(1,474)(7,131)
2,560(1,930)22,002¥ 787,274
127,491
296,827
69,895
1,307,757¥2,589,246¥(1,614)(4,736)(3,957)
2,087
1,598(6,621)¥ 821,724
140,847
350,298
61,314
953,247¥2,327,432

1. Geographical segments are divided into categories based on their geographical proximity.
2. Significant countries or areas belonging to each segment are as follows:
Fiscal 2010
North America ......................................................... U.S.A., Canada
Europe .................................................................... Sweden, Germany, France
Others ..................................................................... Australia, China
Fiscal 2009
North America ......................................................... U.S.A., Canada
Europe .................................................................... Sweden, Germany, France
Others ..................................................................... Australia, China, Brazil
3. Corporate assets included in corporate or elimination of inter-segment transactions consist mainly of cash and cash equivalents, short-term
investments and investments in securities held by the Company. Corporate assets were ¥1,536,600 million and ¥1,182,062 million as of March
31, 2010 and 2009, respectively.
4. Effective from the consolidated fiscal year ended March 31, 2009, the Company applies Practical Issues Task Force No. 18 “Practical Solution
on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements” issued on May 17, 2006 by the
Accounting Standards Board of Japan. As a result, operating income increased by ¥729 million in North America and ¥1,467 million in Europe.
5. In accordance with the revision of the Corporation Tax Act of Japan, Toyota Industries revised the useful lives of tangible assets and appliedthem from the consolidated fiscal year ended March 31, 2009. As a result, operating income decreased by ¥5,824 million in Japan.

72

Toyota Industries Report 2010

Financial Section(3) Overseas sales

For the years ended March 31, 2010 and 2009:
Millions of yen

Overseas sales:
North America
EuropeOthers
Total
Total sales
Ratio of overseas sales to total sales (%):
North America
EuropeOthers
Total

2010

2009

¥ 137,260
221,054
102,630¥ 460,944¥1,377,769¥ 192,678
302,812130,503¥ 625,994¥1,584,252

10.0%
16.0
7.5
33.5%

12.2%
19.1
8.2
39.5%

1. Geographical segments are divided into categories based on their geographical proximity.
2. Significant countries or areas belonging to each segment are as follows:
Fiscal 2010
North America ......................................................... U.S.A., Canada
Europe .................................................................... Germany, France, U.K.
Others ..................................................................... Australia, China
Fiscal 2009
North America ......................................................... U.S.A., Canada
Europe .................................................................... Germany, France, Russia
Others ..................................................................... China, Australia, Brazil
3. Overseas sales are sales of the Company and its consolidated subsidiaries in countries and areas other than Japan.

25. Related party transactions:
The following transactions were carried out with related parties:(1) Sales of goods and services for the years ended March 31, 2010 and 2009 were as follows:
Millions of yen

Toyota Motor Corporation

2010¥599,217

2009¥563,665

Toyota Motor Corporation held 24.61% of the Company’s voting rights as of March 31, 2010. As for the sales of automobiles and engines, etc.,
the Company offers prices on such products based on their overall costs and negotiates conditions for each fiscal year, as per conditions on
arm’s-length transactions. The above transactions are carried out based on commercial terms and conditions. Transaction amounts exclude
consumption taxes.

(2) Purchase of goods for the years ended March 31, 2010 and 2009 were as follows:
Purchase of goods:

Millions of yen

Toyota Motor Corporation

2010¥435,232

2009¥405,120

As for the purchase of parts of automobiles and engines, etc., the Company negotiates conditions for each fiscal year, based on offered prices
on such products, as per conditions on arm’s-length transactions. The above transactions are carried out based on commercial terms andconditions. Transaction amounts exclude consumption taxes.

(3) Outstanding balances arising from sale/purchase of goods/services as of March 31, 2010 and 2009 are
as follows:
Receivables from a related party:

Millions of yen

Toyota Motor Corporation

2010¥32,841

2009¥22,692

Payables to a related party:
Millions of yen

Toyota Motor Corporation

2010¥47,2122009¥22,678

The balance as of March 31, 2010 and 2009 includes consumption taxes.

Toyota Industries Report 201073

Financial Section

Notes to Consolidated Financial Statements

26. Net loss per share (EPS):
The basis of calculation for net loss per share basic and net income per share diluted is as follows:
Millions of yen

Net loss per share — basic:
Net loss
Net income not attributable to common shareholders(bonuses for directors and statutory auditors that are paid through appropriation)
Net loss attributable to common shareholders
Weighted­-average shares (thousand)Net loss per share — basic (exact yen amounts)
Net loss per share — diluted:
Weighted-average shares for diluted computation (thousand)Net loss per share — diluted (exact yen amounts)

2010

2009

¥ (26,273)–¥ (32,767)–(26,273)
311,573¥ (84.33)(32,767)
311,584¥ (105.16)

–
–

¥

0
–

¥

Amounts for net loss per share—diluted are not shown due to being negative numbers.

27. Net assets per share:
The basis of calculation for net assets per share is as follows:
Millions of yen

Net assets per share:
Total net assets
Amounts deducted from total net assets
Subscription rights to shares
Minority interests in consolidated subsidiaries
Net assets applicable to common stock at end of year
Outstanding shares of common stock at end of year used for the computation of net assets per share (thousand)Net assets per share (exact yen amounts)

2010

2009

¥1,104,929¥ 977,670

1,720
46,9781,056,230
311,570¥ 3,390.02

1,224
45,715
930,730
311,577¥ 2,987.16

28. Cash and cash flows:
The relationship between the accounts in the consolidated balance sheets and the remaining balance of cash and cash equivalents as of March
31, 2010 and 2009 are as follows:
Millions of yen

Cash and deposits
Deposits with a maturity of over three months to one year
Short-term investments (securities) which have an original maturity within three months
Cash and deposits for business engaged in collection and delivery
Cash and cash equivalents

74

Toyota Industries Report 2010

2010
¥287,965(30)
71,391(41,736)¥317,590

2009¥169,743(21)
58,838(40,549)¥188,011

Financial Section

Report of Independent Auditors

Toyota Industries Report 201075

Financial Section

Further DetailFor further information, please visit our Investor Relations Website. (http://www.toyota-industries.com/ir/)76

Toyota Industries Report 2010

Financial Section

Investor Information(As of March 31, 2010)

Corporate Head Office

Number of Shareholders

TOYOTA INDUSTRIES CORPORATION

22,1432-1, Toyoda-cho, Kariya-shi, Aichi, 448-8671, Japan
Telephone: +81-(0)566-22-2511

Independent Accountants

Facsimile:

PricewaterhouseCoopers Aarata+81-(0)566-27-5650

Shin-Marunouchi Bldg., 32nd Floor

Date of Establishment

1-5-1, Marunouchi, Chiyoda-ku, Tokyo, 100-6532, Japan

November 18, 1926

Common Stock

Transfer Agent
Special Account Management Institution

No par value

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

Authorized: 1,100,000,000 shares
Issued:325,840,640 shares

Stock Exchange Listings
Tokyo, Osaka and Nagoya (Ticker Code: 6201)

Major Shareholders (Top 10)(As of March 31, 2010)

Toyota Motor Corporation

Number of
Shares Held (Thousands)

Percentage ofTotal Shares in Issue (%)

76,60023.51

DENSO Corporation

29,647

9.10

Third Avenue Fund

17,400

5.34

Towa Real Estate Co., Ltd.

15,697

4.82

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

9,160

2.81

Toyota Tsusho Corporation

8,289

2.54

Japan Trustee Services Bank, Ltd. (Trust Account)

6,814

2.09

Nippon Life Insurance Company

6,735

2.07

Aisin Seiki Co., Ltd.

6,578

2.02

The National Mutual Insurance Federation of Agricultural Cooperatives
Total

6,097

1.87

183,022

56.17

Notes:
1. Toyota Industries Corporation also holds 14,269 thousand shares of treasury stock but is excluded from the above list.
2. Shares held for the purpose of trust services of respective banks are as follows:
The Master Trust Bank of Japan, Ltd. (Trust Account)9,160 (Thousands)
Japan Trustee Services Bank, Ltd. (Trust Account)
6,814

Distribution of Shares(As of March 31, 2010)

0.2%
4.4%
8.3%

20.4%

20.7%

46.0%

Japanese corporate entities
Japanese financial institutions
Foreign corporate entities and others
Individuals, etc.
Treasury stock
Japanese brokerages

Toyota Industries Report 201077

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

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