Focus

4

Globalization of the Materials Handling Equipment Segment
Toyota Industries’ Materials Handling Equipment Segment, a world leader in the production and sale of lift trucks, comprises TOYOTA
Material Handling Company (“TMHC”) and BT Industries AB (“BT Industries”). The two companies will cooperate globally as equal strategic
partners, marketing each other’s products on an OEM basis.
Competition in the materials handling equipment market is intensifying, marked by cross-border consolidation and alliances. By
assuming the industrial equipment sales and marketing operations of Toyota Motor Corporation (“TMC”) and acquiring BT Industries, we
intend to strengthen our position as a global leader distinguished by our comprehensive lineup, superior technologies and responsivenessto customer needs.

Brand Portfolio of the Materials Handling
Equipment Segment

primarily the brand names BT in Europe and other regions

The Materials Handling Equipment Segment will continue tobrand names, TMHC and BT Industries will cooperate closely

provide products under the TOYOTA and BT brands. TMHCin seeking to develop potential benefits of synergy to theuses the brand name TOYOTA L&F in Japan and Toyota

maximum.

and Raymond in North America. While maintaining their own

Industrial Equipment in other regions. BT Industries uses

TOYOTA Material Handling Company

BT Industries AB

Japanese market

European market

Non-Japanese markets

North American market

Industrial equipment made by Toyota Industries is sold in

BT Industries uses the brand names BT in Europe andJapan under the brand name of TOYOTA L&F (Logistics

other regions and Raymond in North America. BT

and Forklifts), which refers to materials handling systems

Industries also has the Cesab, Prime-Mover and Lift-Riteand industrial vehicles and equipment. Outside Japan, thebrand names used in certain areas.

signature of TOYOTA INDUSTRIAL EQUIPMENT is used.

TOYOTA INDUSTRIES CORPORATIONANNUAL REPORT 2002

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Focus 4
TOYOTA Material Handling Company
Division of Toyota Motor Sales, U.S.A., Inc., also transferred in
April 2001. We also absorbed other related operations,
including TMC’s industrial equipment sales subsidiaries in
Europe.

Operations in JapanThe forklift truck markets in advanced countries, including
Japan, are maturing, and demand therefore tends to follow
the business cycle. Calendar year 2001 saw total demand in
the domestic market increase by 2.9% over 2000 while TMHC
outperformed market demand, increasing unit sales by 3.8%
and recording a record-high market share of 40.6%. The
consolidation of manufacturing and sales operations was a
key factor in this achievement.
TMHC supplies TOYOTA-brand forklift trucks and materials
handling systems through an established sales network of 43
dealers throughout the country. To provide optimal solutions

Gearing Up for Future Growth

to customers who want higher materials handling efficiency,

In April 2001, Toyota Industries took over the industrial

we also sell warehouse trucks other than counterbalanced

equipment sales and marketing operations of TMC. From

forklift trucks. In October 2001, we marketed the fully

1956, when the first TOYOTA-brand forklift truck was launched,remodeled High-Pick Lift, an electric order picking truck for

TMC had been responsible for the sales and marketing ofloads of 0.5 to 1.5 tons.

materials handling equipment developed and manufactured

Although the Japanese forklift truck market is expected toby Toyota Industries. With the transfer, Toyota Industries

improve marginally in the second half of fiscal 2002, a fullassumed full responsibility for all materials handlingrecovery will take longer. In these circumstances, we haveequipment operations on a global basis.

embarked on a full-fledged fleet management programThis consolidation positions materials handling equipment

targeted at increasing Toyota Industries’ presence in the fleet

as a core business within the Toyota Group, and underlines

market and set up a specialized section within TMHC. In April

Toyota Industries’ status as one of the world’s leading

2001, we introduced BT Industries’ hand pallet trucks on ancomprehensive manufacturers in the field. The integration of

OEM basis into the Japanese market to enhance ourdevelopment and manufacturing expertise with strong sales

warehouse truck lineup. In May 2002, we started sales ofand marketing capabilities will make for more flexible

electric pallet trucks, also on an OEM basis. We will continue tomanagement, faster decision-making and strengthened

introduce BT Industries’ products step by step.

global competitiveness.

In April 2001, the TOYOTA Material Handling Customer

Consequent to the above move, the section that handles

Center opened for

TOYOTA-brand forklift trucks within the Materials Handlingbusiness. The Center,

Equipment Segment became TOYOTA Material Handling

located just east ofCompany, an in-house corporate entity within Toyota

Tokyo in Ichikawa,

Industries. TMHC acts as a virtual company with its own

markets TMHC’s

management, enabling it to operate in close line with market

products and also offerschanges. TMHC also subsumed some of TMC’s domestic

consulting services.

forklift truck sales subsidiaries and the Industrial Equipment

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TOYOTA INDUSTRIES CORPORATIONANNUAL REPORT 2002

TOYOTA Material Handling Customer CenterSupported by TMHC’s accumulated know-how and abroad lineup of software and hardware, including forklift
trucks, racks and materials handling systems, the engineers at
the Center can provide customized total materials handlingsolutions, from efficient equipment layout to inventory
analysis.

Operations in the U.S.A.
The year 2001 was a time of transition and challenge in the
U.S. for both the Toyota Group’s industrial equipment
operations and the forklift truck industry. As part of the
Toyota Group’s strategy to strengthen its global materials
handling operations, Toyota Industrial Equipment, formerly adivision of Toyota Motor Sales, U.S.A., Inc., was acquired by
Toyota Industries Corporation. This resulted in the formationof a new sales company in the U.S., Toyota Material Handling,
USA, Inc. (“TMHU”), which is responsible for TMHC’s sales
operations in the United States.
The already faltering U.S. economy was hit hard by the

For 2002, the market is moving slowly into recovery.
Current trends center on environmental and safety

tragic events of September 11, and the industrial equipment

considerations, increased productivity and reduced operating

sector did not escape this impact. In 2001, retail orders for the

expenses, leading to increased demand for energy-efficientindustry as a whole slipped more than 30%. However, TMHU’selectric forklift trucks. TMHU has taken advantage of this trend

commitment to growth helped the company reach newwith the successful launch of its new line of 7-Series electric

market share records while remaining profitable. In 2001,

lift trucks in 2000 and 2001. These new four-wheel electric lift

TMHU became the exclusive industrial equipment supplier totrucks offer advanced performance features, including an AC

the United States Postal Service for the next ten years. This,drive system with power regeneration technology for greater

along with other strategic partnerships, helped TMHU toefficiency and productivity. The line offers a broad range ofgrow in a depressed market.

lift capacities to suit most industry applications, and eachmodel incorporates TMHC’s exclusive System of Active
Stability (SAS) for increased safety and stability.
Headquartered in Irvine, California, TMHU has beenoffering high-quality lift trucks in the U.S. for 35 years. With areputation for quality and durability, TOYOTA is one of thebest-selling brands of forklift trucks in the world.
Approximately 95% of Toyota lift trucks sold in the U.S. areassembled by Toyota Industrial Equipment Manufacturing,Inc., in Columbus, Indiana. TMHU’s commitment to customer
service extends nationwide. Eighty authorized dealers with a
total of 182 facilities located throughout the U.S. offer
comprehensive customer support, including one-stop
shopping for Toyota Industrial Equipment lift trucks, parts,

TOYOTA INDUSTRIES CORPORATIONANNUAL REPORT 2002

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Focus 4

Toyota network across 20 European countries.

service, financing and rentals.
In 2002, TMHU will continue its rise as a comprehensive
industrial equipment service provider in the U.S., while

maintaining Toyota
Focus
4 Industries’ No. 1 position in U.S.

counterbalanced forklift truck sales and market share. TMHU isfocused on attaining the No. 1 position in all product classes.

The year 2001 brought many challenges in economic andmarket conditions. However, TIEE succeeded inoutperforming market trends and conditions, achieving a
year-on-year sales increase of 5% in 2001.
In general, the European economy started to slow in the

For more information on TMHU, please visit

beginning of the second quarter of 2001, as a delayed result

www.toyotaforklift.com.

of the recession in the U.S. The tragic events of September 11
accelerated this downward trend. The German economy in

Operations in Europe

particular performed worse than expected.

Toyota Industrial Equipment Europe, S.A.R.L. (“TIEE”), theThe market for counterbalanced forklift trucks suffered

European division of TMHC, offers a comprehensive lineup of

severely from the general economic conditions in 2001, but

forklift trucks and warehouse products for use in a variety of

TIEE managed to maintain its market share of about 10% andmaterials handling situations. Building on its corporate theme

to keep orders at the same level as in 2000. The market forof “Share Our Strength, ” TIEE is continuously developing its

warehouse equipment showed more resistance to the

products and services to meet changing customer needs ineconomic situation, growing by approximately 12% over thethe European market. With its marketing headquarters inyear 2000. Again, TIEE succeeded in outperforming themarket, with orders up 40%.
Market analysts expect the European economy to recover
over the second and third quarters of 2002, and the market
for counterbalanced forklift trucks and warehouse equipment
will likely pick up in response. The first few months of 2002
showed signs that the downward trend is indeed stabilizing.
As a whole, 2002 promises to be a very exciting year for
TIEE. In May, TIEE moved to new European headquarters inBrussels. From there, it will continue its efforts to extend its
European sales, distribution and after-sales network in orderto ensure a quick and effective response to customers’
demands. TIEE will continue to invest heavily in newengineering technologies and manufacturing techniques,and provide existing and new customers with state-of-the-art
products. Among the innovative products scheduled for

Brussels, TIEE provides extended marketing and sales support

launch during 2002 are the Generation 7 Stackers, the 7FBRE

to distributors all over Europe. It is responsible for identifying

reach truck and the Easymover handy electric pallet truck. The

and analyzing customers’ needs and passing on thisextended range of warehouse equipment was introduced at

information to technical and research departments for

the CeMAT fair in Hannover in April 2002. Later in the year

implementation. TIEE manages an extensive after-sales service

TIEE will launch the 7FBMF, a counterbalanced forklift truck

to guarantee continuous operation of its products. Extremely

featuring the latest technology that is destined to set

short delivery times are ensured through a European

revolutionary new standards for the industry in productivity,

centralized spare parts distribution network. European

safety, ergonomics and reliability. For more information on

customers are supported and serviced through the local

products and services, visit www.tiee.com.
Note: The fiscal years of Toyota Material Handling USA, Inc. and Toyota
Industrial Equipment, S.A.R.L. run from January 1 to December 31.

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TOYOTA INDUSTRIES CORPORATIONANNUAL REPORT 2002

BT Industries
In June 2000, Toyota Industries acquired BT Industries, a Swedish warehouse equipment manufacturer, and made it a subsidiary. BT
Industries is the world’s leading manufacturer of warehouse trucks.

A Message from BT Industries’ President

BT Industries Stays Strong in a Declining Market
through mergers and acquisitions, with large international
companies leading the way. At the same time, there is a trend
for customers to concentrate on their core businesses andsubcontract their entire materials handling operations. Boththese developments call for BT Industries to provide turnkey
solutions across borders. Companies want access to theconcepts they use in their home markets no matter where
else in the world they set up operations. Thanks to its Group’s
global presence, BT Industries has a competitive advantage. It
is the only lift truck producer that can provide customers withfull product lines that meet both European and U.S.
standards.
Carl-Erik Ridderstråle (left), credited with having transformed BT Industries
into the world leader in warehouse equipment, was succeeded as president andCEO by Per Zaunders (right) on June 1, 2002.

Demand for warehouse trucks weakened in 2001, but BT
Industries achieved continued growth in revenue and income.
This was helped by, among other things, a good order backlog
at the beginning of the year. The year was also notable forfurther investments in product development and increased
market coverage.
BT Industries is the world’s leading manufacturer of electric

One reason why BT Industries has succeeded inestablishing long-term relationships with its customers is its
ability to develop along with them. Short-term rental andmulti-year leasing represent an important and growing shareof BT Industries’ operations. The leasing concept in Europe
allows customers to calculate their truck costs in advance. It
also eliminates the need to tie up capital that can be betterused in other areas of their operations. A few years ago, oneof every three trucks BT Industries delivered in Europe waspart of some form of rental agreement. Today, the figure iswarehouse trucks and manual trucks, so-called hand pallettrucks, and these lines are complemented by a broad range ofcounterbalanced trucks. But efficient materials handling
involves much more than hardware. BT Industries also offers awide range of services, including repair and maintenancesolutions, fast, efficient distribution of spare parts, driver
training, various leasing alternatives and truck financing. In
fact, service is BT Industries’ core business, allowing customers
to concentrate on theirs.
Several of our client industries are undergoing consolidation

Note: The fiscal year of BT Industries, unlike that of Toyota Industries, runs
from January 1 to December 31.

TOYOTA INDUSTRIES CORPORATIONANNUAL REPORT 2002

23

Focus 4nearly 40%. In North America, BT Industries has an extensive
leasing business, with independent dealers usually
responsible for maintenance and service. In this case as well,freeing up capital, in combination with access to sufficient
truck capacity, is an important factor in customers’ decisions.
The lift truck market is experiencing long-term growth,particularly with regard to warehouse trucks. The market forelectric warehouse trucks has grown by an annual average of
6–7% over the past 30 years. Despite a temporary decline in2001, average growth over the last ten years has been evenhigher. This is a reflection of increases in consumer spending
and changes in spending patterns. One example is theconsumer goods sector, where a growing share of finishedand semi-finished goods is distributed directly to end-users.
Another is the trend among large engineering companies
toward outsourcing of production, allowing them to focus on

Europe, demand remained good, although a decline wasassembly. As a result, higher volumes of components have to

noted toward the end of the year. Demand also fell in markets

be transported.

outside Western Europe and North America late in the year.

The global market for lift trucks is largely concentrated inOrders received increased to SEK12.2 billion, up 2% overregions with high levels of consumer spending, such as

2001, while sales rose by 15% to SEK13.2 billion. A very good

Europe, North America and Japan. But as their standards oforder backlog at the start of the year contributed to the sales

living rise, developing countries, particularly in Eastern Europe,

increase and income trend. Income after net financial items

Southeast Asia and Latin America, are also becoming highly

was SEK888 million, up 8%.

attractive markets for BT Industries. There are exciting

BT Industries is continuing to add capacity. During the last
two years, capacity has been expanded at the production

developments ahead in these markets.
Before its acquisition by Toyota Industries in June 2000, BT

units in Mjölby (Sweden), Bologna (Italy) and Brantford

Industries was the world leader in warehouse trucks and(Canada). These investments demonstrate confidence in the

Toyota Industries was the world leader in counterbalanced

long-term growth of the industry and our ability to make thetrucks. Now, BT Industries and Toyota Industries’ lift truck

most of future opportunities. Continued investments inoperations complement each other geographically as well as

product development should be seen from the samein terms of products, resources and competence. Together, theperspective. In 2001, BT Industries launched several important

two command over 20% of the total global market for lift

new products. At the main U.S. plant in Greene, New York,

trucks, making it the market leader in the industry as a whole.

ground was broken on a facility that will house productToyota Industries and BT Industries are continuously

development and a demonstration hall.

developing their cooperation, engaging in various joint

In 2002, the North American market is expected to recoverprojects and benefiting from an increased exchange ofand then grow modestly. In Europe and the rest of the world,

knowledge and experience. This cooperation is helping to

BT Industries anticipates that demand will develop moreincrease our competitive strength.

weakly than in 2001. However, BT Industries has very good

In 2001, the global market for lift trucks was adversely

prospects of further expanding its operations in mature

affected by the major economic slowdown in North America.

markets such as Western Europe and North America as well as

BT Industries adapted its production to the weaker market. In

in growth markets.

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TOYOTA INDUSTRIES CORPORATIONANNUAL REPORT 2002

In this section, we explain BT Industries’ organization, market

BT Industries’ Worldwide Manufacturing Bases

trends in fiscal 2001 and future prospects.

Organization of BT Industries
BT Industries’ products and services are marketed in some 70
countries around the world. Operations are divided into threegeographic business areas: BT EUROPE (Western Europe), BT
RAYMOND (North America) and BT INTERNATIONAL (rest of
the world). The BT Industries Group has seven production
units. In Europe, there are two plants in Mjölby, Sweden, andone in Bologna, Italy. In the U.S., there are plants in Greene,
New York, and Muscatine, Iowa. In Canada, there areproduction facilities in Brantford and Toronto, Ontario.
The BT Industries Group’s sales and service activities are

BT Industries presently operates seven manufacturing bases in Europe andNorth America. Products made at these bases are sold worldwide through BT’s
own sales and service organizations and some 450 distributors and dealers.

carried out by its own companies as well as by partly owned
associated companies and independent dealers. The BT
Industries Group comprises a total of 70 companies and it

lift truck market is concentrated in the industrialized world.

cooperates with around 450 dealers spread across much of

Approximately 78% of demand for warehouse trucks is in

the world. BT Industries Group operations are managed

Western Europe, North America and Japan. The global market

through the parent company, BT Industries AB, part of Toyota

for products and services based on electric warehouse trucks

Industries Corporation since 2000.

is estimated at SEK50 billion, half of which represents trucksales and half the service market.
The largest suppliers in the market consist of around ten

BT INDUSTRIES

companies based in Europe, the U.S. or Japan. Some arefocused mainly on counterbalanced trucks, while others, like

BT EUROPE

BT RAYMONDBT INTERNATIONALBT Industries and Toyota Industries, offer both warehouse andcounterbalanced trucks. With a market share of over 20%, BT

Note: The BT Industries Group comprises some 70 companies with global
coverage. BT Industries’ operations are organized into three businessareas.

Industries and Toyota Industries together are the world leader.
Despite a weak market in 2001, the lift truck market isundergoing long-term growth. This applies in particular to themarket for electric warehouse trucks. During the past 30 years

Market Trend

demand for electric warehouse trucks in Western Europe and

The global market for the year 2001 for lift trucks (excluding

North America has grown by an average of 6–7% a year.

manual trucks) is estimated at 591,000 units, with warehouse

Emerging markets in Eastern Europe, Southeast Asia andtrucks accounting for approximately 41% and electric- andSouth America have grown by more than 10% annually in the

combustion-powered counterbalanced trucks for 19% andlast decade. Demand for warehouse trucks is driven mainly by

40%, respectively.

a society’s standard of living. A higher standard of living leads

BT Industries’ principal focus remains warehouse trucks. In
recent years, the product range has been broadened toinclude mainly electric counterbalanced trucks. Since Toyota
Industries’ main focus is counterbalanced trucks, BT Industries

to more commerce and an increased flow of goods, which inturn raises the demand for efficient distribution.
BT Industries expects demand in the electric warehousetruck segment to remain at its historical growth rate.

and Toyota Industries’ products complement each other. The

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