Contents

Corporate Philosophy of Toyota Industries Corporation

Aiming for the Realization of an Enriched
Lifestyle and Comfortable Society
The Toyota Industries Group has achieved prosperity in harmony with society by responding tothe changing times, capturing needs and offering products that contribute to society.
The spirit of founder Sakichi Toyoda has been encapsulated in the Toyoda Precepts,
which serve as Toyota Industries’ corporate creed. Our Basic Philosophy carries onthat spirit and is stipulated as basic management policies. Based on this Basic Philosophy,
we constantly strive for the sustainable growth of our businesses by contributing tothe realization of an enriched lifestyle and comfortable society.

Toyoda Precepts

Basic Philosophy

Carrying out the spirit of founder Sakichi Toyoda,• Always be faithful to your duties, thereby contributing to theCompany and to the overall good.
• Always be studious and creative, striving to stay ahead of thetimes.
• Always be practical and avoid frivolousness.
• Always strive to build a homelike atmosphere at work that iswarm and friendly.
• Always have respect for God, and remember to be grateful at
all times.

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

Message from the Chairman and President
Inside cover–1
Corporate Philosophy
2
Contents / Editorial Policy / Cautionary Statement
3
Growth of Toyota Industries
4–5
Outline of Businesses
6–7
Consolidated Financial and Non-Financial Highlights
8–9
Top Interview
10–15
Corporate Governance
16–21
Corporate Governance Structure
16Internal Control System
17Compliance
17–19Management of Confidential Information
20
Risk Management
20–21
Special Features
22–29
22–25
1 Materials Handling Equipment Business of Toyota
Industries Supporting Customers’ Logistics
26–29
2 Leveraging Strengths in Engaging in Diverse
Businesses to Raise the Competitiveness ofProducts Capturing a World-Leading Market ShareBusiness Activities
Materials Handling Equipment / Logistics
Materials Handling Equipment
Logistics
Automobile
VehicleEngineCar Air-Conditioning Compressor
Car Electronics
Textile Machinery

30–36
30–35
36
37–42
37–38
38–39
39–41
41–42
43

Relationship with Stakeholders
Relationship with Our Customers
Relationship with Our Business Partners
Relationship with Our Shareholders and Investors
Relationship with Our Associates
Relationship with Our Local Communities

44–45
46
47
48–51
52–53

Environmental Initiatives
Vision for Environmental Activities
Structure to Implement Environmental Management
Fifth Environmental Action Plan—
Five Years of Steady Progress
Summary of the Fifth Environmental Action Plan
Sixth Environmental Action Plan
Establishing a Low-Carbon Emission Society
Establishing a Recycling-Based Society
Reducing Environmental Risk andEstablishing a Society in Harmony with Nature
Environmental Management
Environmental Impact Flow andEnvironmental Accounting

5455
56–57
58–59
60–61
62–63
64–65
66–67
68–69
70

Financial Section / Corporate Information
Financial Section
Consolidated Eleven-Year Summary
Consolidated Balance Sheets
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets
Consolidated Statements of Cash Flows
Corporate Information
Board of Directors, Audit & Supervisory Board		 Members and Managing Officers
Major Production Bases
Investor Information

72–80
72–73
74–75
76
77
78–79
80
81–83
818283In aiming to realize a deeper understanding of the Toyota Industries Group among a broad spectrum of stakeholders, theAnnual Report and Social and Environmental Report have been combined into the Toyota Industries Report from the fiscal year
ended March 31, 2008.
In addition to the Toyota Industries Group’s management policies, the report provides easy-to-understand information
regarding its business, social and environmental activities over the past year as well as its future direction.
This report focuses on activities carried out in fiscal 2016 (April 1, 2015 to March 31, 2016), but also includes some information
Period covered by the reportoutside this period.
Organizations covered in the report Toyota Industries Corporation and its consolidated subsidiaries
Reference guidelines
l Global Reporting Initiative (GRI) Sustainability Reporting Guidelines 4th edition (G4)l ISO 26000
l Japan’s Ministry of the Environment Environmental Accounting Guidelines (2005 Version)l Japan’s Ministry of the Environment Environmental Reporting Guidelines (2012 Version)
Editorial policy

Toyota Industries’ CSR Activities

Contribution asa corporate citizen

Contribution in
non-business areas

Ethical responsibility /ComplianceFairness, transparency,
respect for human rights
and cultures, environmental
conservation

Foundation ofbusiness activities

Economic responsibility(business responsibility)

Continuous provision of
products and services
that contribute to society

Contributions throughbusiness activities

Society (company’s raison d’etre)

Corporate social
responsibility

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
and estimates of the Toyota Industries Group regarding its plans, outlook, strategies and results for the future. All such projections and forward-looking statements are basedon 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, it is advised that you should not rely solely upon these projections and forward-looking statements in making your investment decisions. You should also be aware thatcertain risks and uncertainties could cause the actual results of Toyota Industries to differ materially from any projections or forward-looking statements discussed in this report.
These risks and uncertainties include, but are not limited to, the following: (1) reliance on certain customers, (2) 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.
The fiscal year ended March 31, 2016 is referred to as fiscal 2016 and other fiscal years are referred to in a corresponding manner.

2

Toyota Industries Report 20163