Toyota Industries Report 2020

Toyota Industries Report
2-1, Toyoda-cho, Kariya-shi, Aichi 448-8671, Japan
Telephone: +81-(0)566-22-2511 Facsimile: +81-(0)566-27-5650
https://www.toyota-industries.com/
Year ended March 31, 2020

This report is printed on FSC™-certified paper that contributes to forest conservation
with ink derived from vegetables.
Printed in Japan

Message from the Chairman and President

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

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

Tetsuro Toyoda
Chairman

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

1Company Introduction

Realizing Toyota Industries’ Vision
based on Our Basic Philosophy

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Realizing Toyota Industries’ Vision
based on Our Basic Philosophy

Based on our basic philosophy, we aim to contribute to making the earth a better place to live, enrich lifestyles andpromote a compassionate society by making the most of the core assets and strengths we have accumulated todate in promoting our diverse businesses such as materials handling equipment, logistics solutions, vehicle, engine,car air-conditioning compressor, car electronics and textile machinery and by engaging in value creation.

Toyoda Precepts

Basic Philosophy

Meeting Social Demands
based on Vision 2030

CSR Materiality

Toyoda Precepts (Corporate Creed)

Basic Philosophy

Vision 2030

Identifying Our Materiality in Connection
with SDGs * Please see page 55.

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.

[Respect for Others]
Toyota Industries is respectful of thepeople, culture, and traditions of eachregion and country in which it operates. It
also works to promote economic growthand prosperity in those regions andcountries.
[Respect for the Natural Environment]
Through its corporate activities, Toyota
Industries works to contribute to regional
living conditions and social prosperity andalso strives to offer 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.

We encapsulated the spirit of founder Sakichi Toyoda in the Toyoda
Precepts, which serve as Toyota Industries’ corporate creed and uponwhich our Basic Philosophy is based.

Contribute to making the earth a better place
to live, enrich lifestyles, and promote acompassionate society by supporting industrial
and social infrastructure around the world
through the continuous supply of products/
services that anticipate customers’ needs.
ve, enrich lifestyles, and promote aplace to li
compa
better
ssion
rth a
a
ate s
e
e
ocie
e th
k
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l
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cture arouMl and s
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orld
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Create new values by being studious and creative

Automobile

Materials
Handling
Equipment /Logistics

Take on challenges and enter into new businesses

Textile Machinery
TPS

Team

Manufacturing foundation strength

Link to details on
Vision 2030.

Toyoda Precepts

Social Demands
SDGs[Respect for Employees]
Toyota Industries nurtures theinventiveness and other abilities of its
employees. It seeks to create a climate ofcooperation, so that employees and theCompany can realize their full potential.

Global social issues adopted at the United
Nations summit in 20152
4

Toyota Industries Report 2020
豊田自動織機レポート2020

As stated in Vision 2030, toward the realization of a sustainable society,contribute to “make the earth a better place to live,
enrich lifestyles, and promote a compassionate society”

CSR Materiality

SDGs to Contribute■ Mitigation of Global
Warming

Resolving Social Issues through Our Business

Always be studious and creative, striving to stayahead of the times.

[Respect for the Law]
Toyota Industries is determined to comply
with the letter and spirit of the law, inJapan and overseas, and to be fair andtransparent in all its dealings.

■ Contribution to
Circular Economy■ Creation of Innovative
Values■ Products and Services
Which Contribute to Safety,
Security and Comfort■ Mutual Prosperity throughPartnerships with Local
Communities

Foundation Supporting
Our Business Operations

Always be faithful to your duties, thereby contributing
to the Company and to the overall good.

■ Safe and Healthy Work Environments■ Leveraging Diversity and Inclusion■ Sustainable Procurement■ Compliance and Risk Management

Resolving social issues through corporate activities

3
5

Company Introduction

Toyota Industries’ 3 Businesses andTheir Characteristics

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Toyota Industries’ 3 Businesses andTheir Characteristics

Using our resources and strengths as the foundation, we strive for growth in the Materials Handling Equipment,
Automobile and Textile Machinery businesses. At the same time, we aim to enhance our competitiveness byleveraging synergies among these businesses.

Segment BusinessBusiness activities

Roles of each business

Main products and systems

Performance

Lift Truck

Materials Handling Equipment

Internal-combustion
lift truck

Development

Production

Sales(for users)

After-sales
services

Electric lift truck

Reach-type
electric lift truck

Low lift truck

Automated lift truck Aerial work platform(¥ Billion)

1,500

120

1,200

100
80

900

60
40
20

Logistics
Solutions
EngineToyota Industries works closely with subsidiaries Bastian Solutions
LLC and Vanderlande Industries Holding B.V. by leveraging eachcompany’s strengths to contribute to resolving customers’ logistics
issues through a combination of various logistics equipment andsystems.

With its strengths as a leader in safety, the environment, quality,
cost and delivery among Toyota Group companies, the Vehicle
Business plans, develops and produces the RAV4 for markets inand outside Japan.

In addition to automotive diesel engines produced under a structure
ranging from planning and development to production, we also
produce gasoline engines and industrial engines.

0

Development

Production

Sales(for users)

After-sales
services
Automated storage
and retrieval system

Development

Production

Sales(for Toyota
Motor)

Simple AGV(automatic guided vehicle)

SorterCar AirConditioning
Compressor

The Car Electronics Business plans, develops and produces
electronics products primarily for electrified vehicles such as hybrid
vehicles.

High-speed storage
and picking system

Development

Production

Development

Production

Sales(for automakers
aroundthe world)

Production

We undertake fully integrated operations from planning, development
and production to sales and after-sales services for spinningmachines that spin twisted fiber bundles into yarn and weaving
machines that weave spun yarn into fabrics. Our air-jet looms havecaptured the world-leading market share in terms of unit sales*.

Development

Production

Sales(for users)

19

20

Automobile
Operating Profit

Net Sales

After-sales
services(¥ Billion)(¥ Billion)

600

30

400

20

200

10

0

18

(FY)

Gasoline engine

Turbocharger

Oxygen-supplying air
compressor for fuel cell vehicles

Hydrogen circulation pumpfor fuel cell vehicles

19

20

0

(FY)

18

Percentage of
Net Sales

19

20

28.3%

After-sales
services
Variable-displacement
type compressor

Fixed-displacement
type compressor

Textile MachineryOperating Profit

Net Sales

Development

18

After-sales
services

Electric compressor

Sales(for automakers
aroundthe world)

0

(FY)

66.2%

After-sales
services
DC-DC
converter

4WD rear inverter

On-board charger(¥ Billion)(¥ Billion)

80

8

60

6

40

4

20

2

(FY)

TextileMachinery20

Airport baggage
handling system

RAV4

Sales
(for Toyota
Motor)

19

Percentage of
Net Sales

Diesel engine

Toyota Industries’ car air-conditioning compressors are highly
acclaimed in terms of their reliability at high operating speeds andquiet operation in addition to such excellent environmental
performance features as compactness, light weight and fuelefficiency. The Car Air-Conditioning Compressor Business captures
the world-leading market share in unit sales*.

18

(FY)

0

TextileMachinery

Operating Profit

Net Sales(¥ Billion)

300

Car
Electronics

Automobile

Toyota Industries plans, develops, produces, sells and provides aftersales services for industrial vehicles centered around a full lineup of lift
trucks (0.5- to 43-ton capacities). Lift trucks, which capture the top
global market share*, are delivered to customers around the world. In
addition to the sale of lift trucks, we strive to meet a variety of customer
needs through sales financing, after-sales services and proposals forlogistics efficiencies.

600

VehicleMaterials Handling Equipment

Link to product details.

18

19

20

Percentage of
Net Sales

After-sales
services

Air-jet loom

Ring spinning frame

0

(FY)

18

19

20

2.8%

Quality measurement instrument
for fiber, yarn and fabric* Survey by Toyota Industries Corporation4

Toyota Industries Report 20205

Company Introduction

Message from the Chairman and President

Inside cover–1

Realizing Toyota Industries’ Vision based on Our Basic
Philosophy

2–3

Toyota Industries’ 3 Businesses and Their Characteristics

4–5

Contents
Consolidated Financial and Non-Financial Highlights
Consolidated Eleven-Year Summary

Editorial policy
In aiming to realize a deeper understanding of the Toyota
Industries Group among a broad spectrum of stakeholders,the Annual Report and Social and Environmental Report havebeen combined into the Toyota Industries Report from thefiscal 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, corporate governance, social andenvironmental activities over the past year as well as its future
direction.
Period covered by the report
This report focuses on activities carried out in fiscal 2020 (April
1, 2019 to March 31, 2020), but also includes some
information outside this period.
Organizations covered in the report
Toyota Industries Corporation and its consolidated
subsidiaries
Reference guidelines• Global Reporting Initiative (GRI) Standard• ISO 26000• Japan’s Ministry of the Environment Environmental
Accounting Guidelines (2005 Version)• Japan’s Ministry of the Environment Environmental
Reporting Guidelines (2018 Version)• International Integrated Reporting Framework byInternational Integrated Reporting Council (IIRC)

Top Message
1 Strengths of Our Materials Handling Equipment Business

Aiming for Sustainable Growth

2 Leveraging the Strengths of Diverse Businesses to

Adapt to Changes and Seek Sustainable Growth

Reach-type
electric lift truck

Low lift truck

es
s

31–36

Relationship with Our Customers
Relationship with Our Business Partners
Relationship with Our Shareholders and Investors
Relationship with Our Associates
Materials Handling Equipment

Relationship with Our Local Communities

Operating Profit

Net Sales(¥ Billion)(¥ Billion)

1,500

120

1,200

100
80

900

60

600

40
20

300

es
s

Air-jet loom

6

Toyota Industries Report 2020

Ring spinning frame

Quality measurement instrument
for fiber, yarn and fabric90.5 billion

Net Sales

Operating Profit/Operating Profit Ratio(¥ Billion)(¥ Billion)
150
2,214.9

2,000

2,003.9

2,171.3¥

2,438.8 billion

120

7.4
147.4

6.1

5.9

134.6

128.2

Profit before Income Taxes(%)(¥ Billion)

10
8
6

250
209.8

200

202.2

196.2

2019

2020

90
1,500

150

1,000

38–43

0

Determining CSR Materiality
Special Feature on the Environment:
TMHMS’ Path toward Zero CO2 Emissions(¥ Billion)(¥ Billion)

(FY)

(FY)

0

(FY)

44–45
46
47

(¥ Billion)

2
18

19

20

Percentage of
Net Sales

0(FY)

Major Bases

18

19

20

Investor Information
2.8%

2019

2020

62–63
63–65
65–67

Operating Profit Ratio (right)

Investments in Tangible Assets

Depreciation(¥ Billion)

200

120
168.1
152.7

150

145.8

115.4

113.7

100

100
106.0
77.7

60
40

40
20

0
2018

2019

2020

0

0

(FY)

Note: The figures for profit attributable to owners of the parent are presented.

(FY)

Research and Development Expenses

Cash Dividends Per Share/Dividend Payout Ratio

Total Assets/Share of Equity Attributable to Owners of the Parent/
Ratio of Share of Equity Attributable to Owners of the Parent(¥ Billion)

(¥)

(%)

(¥ Billion)

100

200

35

6,000

88.8
80

2018

2020

34.1

90.5

77.6

2019

31.5
150

30

27.7

160
25

150
100

72

90.4

60

20
(FY)

85.6

80

80

60

70–71

2018

(¥ Billion)

155

68–69

0
(FY)

Note: Operating profit in fiscal 2018 includes a one-time effect of ¥14.3
billion arising from changes in retirement benefit plans.

Profit

50

61–62

2020

(¥ Billion)

56–57

60–61

2019

Operating Profit

2018

100

60

2018

0

55

58–59

50

0
(FY)

48–52
53–54

100

30

500

(FY)

(FY)

20

The fiscal year ended March 31, 2020 is referred to as fiscal 2020 andother fiscal years are referred to in a corresponding manner.

37

Relationship with Our Stakeholders(¥ Billion)

es
s

¥

106.0 billion

Share of Equity Attributable to
Owners of the Parent

Research and Development Expenses

90.4 billion

2,500

Corporate Governance Structure / Internal Control System / Compliance /Information Security / Risk Management

0

es
s

22–25

Automobile

Corporate Governance

(FY)

es
s

¥

18–21

26–30

18 19 20
18 19 20
This report contains projections and other forward-looking statementsthat involve risks and uncertainties. The use of the words “expect,”Environmental Initiatives
Percentage of
Net Sales“anticipate,” “estimate,” “forecast,” “plan” and similar expressions is
66.2%
SorterHigh-speed storage
Airport baggage
Automated storage
Simple AGV
intendedtoidentify
suchforward-looking
statements.
Projections
andandpickingsystemhandling
systemSixth Environmental Action Planand retrieval system(automatic guided vehicle)
forward-looking statements are based on the current expectations andestimates of the Toyota Industries Group regarding its plans, outlook,
Vision for Environmental Activities
strategies and results for the future. All such projections and forwardAutomobile
looking statements are based on management’s assumptions andStructure to Implement Environmental Management
beliefs derived from the information available at the time of producing this Net Sales
Operating Profit
report and are not guarantees of future performance.
Toyota Industries
RAV4
Establishing a Low-Carbon Emission Society
30
undertakes no obligation to publicly update or revise any forward-looking 600
20statements in this report, whether as a result of new information, future 400
Establishing a Recycling-Based Society
200
10
events or otherwise. Therefore, it is advised that you should not rely0solely upon these projections and forward-looking statements in making 0 18 19 20
18 19 Reducing
20
Environmental Risk andyour investment decisions. You should also be aware that certain risks
Percentage of
Establishinga Society in Harmony with Nature
Diesel enginecould cause theGasoline
engineTurbocharger
and uncertainties
actualresults of Toyota
Industries
Net Sales
28.3%
to differ materially from any projections or forward-looking statements
Environmental
Management
discussed in this report. These risks and uncertainties include, but are
not limited to, the following: (1) reliance on certain customers, (2) productdevelopment capabilities, (3) intellectual property rights, (4) productdefects,Variable-displacement(5) price competition,(6) relianceonairsuppliersof rawmaterials
Electric compressor
Fixed-displacement
Oxygen-supplying
Hydrogencirculationpump
Textile MachineryCorporate Information
type compressor
compressor
compressor for fuel cell vehicles
for fuel cell vehicles
and components,(7) type
environmental
regulations, (8) successor failure ofstrategic alliances with other companies, (9) exchange rate fluctuations,Operating Profit
Net Sales
Directors, Audit & Supervisory Board Members,(10) share price fluctuations, (11) effects of disasters, power blackouts
80
8
Senior Executive Officers and Executive Officers
and other incidents, (12) latent risks associated with international
60
6DC-DC (13) retirement benefit liabilities.
activities and40
4converter
4WD rear inverter
On-board charger

es
s

¥

12–17

Promotion of ESG Initiatives

Performance

Cautionary Statement with Respect to Forward-Looking Statements

128.2 billion¥

60

Link to product details.

Automated lift truck Aerial work platform

2,171.3 billion
Depreciation

Materials Handling Equipment
Textile Machinery

Main products and systems* Requires Internet connection.

¥

Investments in Tangible Assets

10–11

Business Activities■ How to use this reportElectric lift truck

6
7–9

Operating Profit

Special Features

This PDF file is linked to related Websites .

ess(FY2020)

Net Sales

Strategies and Businesses

Toyota Industries Report 2020 PDF

Internal-combustion
lift truck

Consolidated Financial and Non-Financial Highlights
Financial Information

Company Introduction

to related

Corporate Information

Consolidated Financial and
Non-Financial Highlights

CONTENTS

Click onWebsites.

Strategies and Businesses Promotion of ESG Initiatives

5,000

2020

(%)
48.6
5,258.550
47.1
5,261.1

4,000

2,000
50

20

2019

46.2
45
5,279.6
40

3,000

40

2,553.3

2,479.7

2,438.8

2018

2019

2020

1,000
0

0
(FY)

2018

2018

2019

2020

(FY)

0
2018
Cash Dividends Per Share

2019

2020
Dividend Payout Ratio (right)(FY)

Total Assets
Share of Equity Attributable to Owners of the Parent
Ratio of Share of Equity Attributable to Owners of the Parent (right)

7

Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Consolidated Financial and
Non-Financial Highlights

Consolidated Financial and Non-Financial Highlights
Non-Financial Information (CSR)(FY2020)

Non-Financial Information (Environment)(FY2020)

Consolidated Number of Employees

Ratio of Non-Japanese Employees

Consolidated Subsidiaries

Energy Consumption (Consolidated)

CO2 Emissions (Consolidated)

Water Consumption (Consolidated)

66,478 persons

67.1 %

256 companies

17,212 TJ

923,314 t-CO2

4,521 km3

Number of Female Associates Holding
Assistant Manager or Higher Position

Ratio of Associates with
Disabilities (Non-Consolidated)

Number of Participants of Social Contribution
Activities of Employee Associations

Discharge of Treated Wastewater(Consolidated)

Raw Material Consumption (Consolidated)

Waste Generation (Consolidated)

2,522 km3

784,366 t

112,796 t

141 persons

2.41*%

1,175 persons* As of June 1, 2019

Consolidated Number of Employees/
Ratio of Non-Japanese Employees(Persons)
70,00065.2

60,00050,00061,15266.6
64,64167.1
66,478

Consolidated Subsidiaries

Participants of Japan’s Subcontracting
Law Seminar

Energy Consumption (Consolidated)

CO2 Emissions (Consolidated)

Water Consumption (Consolidated)(%)(Companies)(Persons)(TJ)(t-CO2)

(km3)

70

300

1,200
254

254

256

60

250

50

200

800

150

600

100

400

50

200

1,000

20,0001,141

1,000,000
16,939978825

17,51415,00040,0005,000

10,000

0

0
(FY)

2018

2019

Consolidated Number of Employees

2020

(FY)

0

0
2018

2019

2020

(FY)

941,371923,3145,000

800,000

4,000

600,000

3,000

400,000

2,000

200,000

1,000

4,873

4,620

4,521

2019

2020

10,00030,00020,000913,123

17,212

2018

2019

2020

(FY)

0

0
2018

2019

2020

(FY)

2018

2019

2020

(FY)

2018

Ratio of Non-Japanese Employees (right)

Frequency Rate of Lost Workday Injuries(Non-Consolidated)

Participants of Age-Based Health Education(Non-Consolidated)

Rate of Undergoing a Stress Check(Non-Consolidated)

Discharge of Treated Wastewater(Consolidated)

Raw Material Consumption (Consolidated)

Waste Generation (Consolidated)(%)(Persons)

(%)

(km3)

(t)

(t)

0.50

3,000

100

1,000,000

150,000

2,500

0.40

2,422

2,470

2,357

2,000

0.30

97

99

99

2,500

2,407

2,463

2,522

830,58880

2,000

800,000 790,022

60

1,500

600,000

90,00040

1,000

400,000

60,00020500

200,000

30,000784,366

120,000

122,521
110,466

112,796

2019

2020

1,500

0.22
0.20
0.12
0.10

1,000
500

0.03
0
(FY)

0

0
2018

2019

2020

Number of Female Associates Holding
Assistant Manager or Higher Position

(FY)

(%)

150

2.5

120

120

2019

2020

Ratio of Associates with Disabilities(Non-Consolidated)(Persons)
141

2018

2.26

2.37

2.41

0

0
2018

2019

2020

(FY)

2018

2020

30

0.5

0
(FY)

2019

2020

(FY)

(Persons)
2,000

1,500

400

1,175

Toyota Industries Report 2020

380

1,291

1,200

1,548

1,178

364

375

2020

(FY)

1,500
1,283
1,200

300

1,176

1,168

2018

2019

900

900
200

600
100

300

2018

2019

2020

(FY)

300
0

0

0

0
2019

2018

VOC*2 Emissions (Non-Consolidated)

500

2018

(FY)

(t)

600

Note: As of June 1 of each fiscal year

8

2020

(t)

1,251

0
2018

2019

(t)

1,000
1.0

0
2018

Emissions/Transfer of PRTR Law DesignatedSubstances (Non-Consolidated)

1.5

60

(FY)

PRTR*1 Law Designated Substances(Non-Consolidated)

1,500

104

2019

Number of Participants of Social Contribution
Activities of Employee Associations

1,326

2.0

90

(FY)

2018

2019

2020

*1: Short for Pollutant Release and Transfer Register, the PRTR law is a scheme whereby
businesses measure the release and transfer of PRTR designated pollutants and reporttheir performance to the government. The government then compiles this data andreleases it to the public.

(FY)

2018

2019

2020

(FY)

2020

*2: Short for Volatile Organic Compounds

9Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Consolidated Eleven-Year Summary

Consolidated Eleven-Year Summary
Link to details.

Toyota Industries Corporation
Years ended March 31

Millions of yen
International Financial Reporting
2020

2019

Standards (IFRS)Generally Accepted Accounting Principles in Japan (JGAAP)

2018

2017

2016

2015

2014

2013

2012

2011

2010

For the YearNet sales

2,171,355

2,214,946

2,003,973

1,675,148

2,243,220

2,166,661

2,007,856

1,615,244

1,543,352

1,479,839

1,377,769

Operating profit (loss)

128,233

134,684

147,445

127,345

134,712

117,574

107,691

77,09870,092

68,79822,002

Profit before income taxes*1

196,288202,225

209,827

181,986

185,398

170,827

138,133

86,83680,86673,911

31,756

Profit (loss)*2

145,881

152,748

168,180

131,398

183,036

115,263

91,705

53,11958,59447,205(26,273)

Investments in tangible assets*3

106,058

113,748

115,458

77,39375,438126,395

109,479

89,45958,404

38,25426,963

Depreciation*3

90,48885,63977,73873,25377,36670,78264,153

57,954

59,83062,372

73,238

Research and development expenses

90,56088,807

77,647

69,52465,44047,78546,32639,05732,07027,78826,826

Basic

469.85491.97541.67420.78582.58367.06292.76170.36188.02151.51(84.33)

Diluted469.85491.97541.67420.78582.57366.99292.57170.35188.02151.51(84.33)7,854.87

7,986.59

8,223.82

7,125.37

6,481.97

7,500.16

5,640.08

4,719.66

3,662.26

3,300.17

3,390.02

160.00155.00150.00125.00120.00110.00

85.00

55.00

50.00

50.00

30.00

Total assets

5,279,653

5,261,174

5,258,500

4,558,212

4,199,196

4,650,896

3,799,010

3,243,779

2,656,984

2,481,452

2,589,246

Share of equity attributable to owners of the parent

2,438,807

2,479,718

2,553,391

2,240,293

2,113,948

2,425,929

1,829,326

1,524,933

1,197,841

1,075,939

1,104,929

Per share of common stock (yen):
Earnings (loss) per share*2, *4

Share of equity attributable to owners of the parent
Cash dividends per share
At year-end

Capital stock

80,46280,46280,46280,46280,46280,46280,46280,46280,46280,46280,462

Number of shares outstanding (excluding treasury stock) (thousands)

310,483

310,485

310,487

310,489314,226

314,155

313,730

312,207311,687

311,564

311,570

Net cash provided by operating activities

313,199

270,306

268,567

239,094

240,169

182,191

155,059

151,299

101,718

153,661

203,452

Net cash used in investing activities(182,598)(395,000)(340,324)(86,925)(531,561)(160,769)(118,483)(274,210)(9,403)(187,574)(36,855)(7,094)

40,467

153,303789

130,923(8,918)

6,183

7,050

10,279(85,728)(38,230)

358,144

239,140

323,830

243,685

92,399248,706

226,406

179,359

296,811

195,566

317,590

Cash flows

Net cash provided by (used in) financing activities
Cash and cash equivalents at end of year
Indices
Operating profit ratio (%)

5.9

6.1

7.4

7.6

6.0

5.4

5.4

4.8

4.5

4.6

1.6

EBITDA (millions of yen)*5

336,415

323,998

313,055

276,193369,857

248,854

216,175

155,234

161,876

150,481

90,521Return on equity (ROE) (%)*6

5.9

6.1

7.0

6.1

8.3

5.6

5.7

4.1

5.4

4.5

(2.6)

Return on assets (ROA) (%)*7

2.8

2.9

3.4

3.0

4.1

2.7

2.6

1.8

2.3

1.9

(1.1)

D/E ratio (%)*8

54.9

52.3

45.7

43.6

43.7

32.0

39.9

45.4

53.8

56.8

60.3

Ratio of share of equity attributable to owners of the parent*9

46.2

47.1

48.6

49.1

48.5

50.7

46.6

45.4

43.0

41.4

40.8

66,47864,641

61,152

52,62351,45852,52349,33347,41243,51640,82538,903

Number of employees (persons)*1: The figures prior to fiscal 2017 are ordinary income under JGAAP.
*2: Profit (loss) attributable to owners of the parent*3: Investments in tangible assets and depreciation apply to property, plant and equipment. They do not include materials handling equipment leased
under operating leases.
*4: Earnings (loss) per share is computed on the average number of shares for each year.
*5: Profit before income taxes + Interest expenses – Interest and dividends income + Depreciation and amortization (including assets other than property,
plant and equipment)*6: Profit (loss) attributable to owners of the parent / Average share of equity attributable to owners of the parent at the beginning and the end of the
fiscal year
*7: Profit (loss) attributable to owners of the parent / Average total assets at the beginning and the end of the fiscal year
*8: Interest-bearing debt / (Share of equity attributable to owners of the parent – Subscription rights to shares)*9: (Share of equity attributable to owners of the parent – Subscription rights to shares) / Total assets
Notes: 1. Toyota Industries has adopted IFRS beginning from the end of fiscal 2017.
		 2. Operating profit in fiscal 2018 includes a one-time effect of ¥14.3 billion arising from changes in retirement benefit plans.

10

Toyota Industries Report 202011

Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Top Message

Strategies and Businesses
Steadily Carry Out Growth Strategies
by Leveraging the Strengths ofEach Business Field

Q
Top Message

P 12 – 17

Special Features

P 18 – 25

1.	Strengths of Our Materials Handling Equipment Business
Aiming for Sustainable Growth
2.	Leveraging the Strengths of Diverse Businesses to
Adapt to Changes and Seek Sustainable GrowthBusiness Activities

P 26 – 37

Top Message

Looking beyond the COVID-19
Pandemic and Seeking
Sustainable Growth inHarmony with Society
Toyota Industries will take on new challenges to ensuresustainable growth in a time of increasing uncertainty
while making Group-wide, concerted efforts to minimize
the impact of the COVID-19 pandemic.

Akira Onishi
President

12

Toyota Industries Report 2020

Could you explain the impact of COVID-19 on Toyota Industries andits response to the pandemic?

COVID-19 is said to have a profound impact on the global economy— the largest in the post-WWII period, far greater than the impact of the
global financial crisis in 2008 and comparable to the Great Depression
in the 1930s. Toyota Industries also has been heavily affected by the
pandemic and has implemented a range of countermeasures.
On the production and sales fronts, most of our plants around theworld suspended operations for a certain period in and after February
2020. Even after lifting the suspension, some are still manufacturing at
a reduced volume. For sales and after-sales service activities, customer
visits have been restricted in some countries and regions. While giving
due consideration to the prevention of infection, we are aiming to return
business activities to normal levels.
For back office employees and engineers, we have cancelledlarge meetings and events and encouraged working from home andteleconferencing to reduce the risk of infection. Using this opportunity,
we have been streamlining operations by examining how we holdmeetings and revising and eliminating certain business processes. As amanufacturer, Toyota Industries values the concept of genchi genbutsu(go and see for yourself) in its operations. In the future, we will determine
when to apply this concept by organizing operations into ones that
continue to require genchi genbutsu and ones that can be done more
efficiently online. Among the initiatives we are undertaking currently,
we plan to carry on those that lead to work style reforms and better
productivity. They have served to accelerate our rather slow efforts toimprove work-life balance.
As a response to a downturn in business, we have been
augmenting profit improvement activities. The plan is to substantiallyreduce capital investment and expenses by postponing nonurgent projects. I am spearheading a Company-wide organizationencompassing various subcommittees to promote these activities. As
for research and development, we will prioritize projects and carry out
ones that are essential for our future growth. Anticipating a prolonged
period of market instability, we have also increased cash on hand fromthe amount of two months to three months of consolidated net sales.
At times like this, it is important to thoroughly reaffirm the basics and go
back to the origin of our business. Thus, we have been stepping up ourefforts to “create a workplace environment that places a top priority on
safety,” “thoroughly control quality and enforce compliance” and “coexist harmoniously with society and protect the global environment.”

Production of car air-conditioning compressors

Organization for Promoting Profit
Improvement Activities
Oversight: President
Chairman: Executive vice president
Admin: Corporate Planning
Dept. in the Head Office
Each business division andthe Head Office
Supporting

Subcommittees on labor costs, secondary
materials costs and depreciation costs, etc.

Production of lift trucks

13

Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Top Message

With regard to contributing to society, we have been carrying out
various support activities for medical institutions, which are becoming
overburdened by the spreading virus. As an example of support for
healthcare professionals utilizing our monozukuri (manufacturing)capabilities, our bases in Japan and the United States have
manufactured and delivered medical face shields to hospitals, medical
institutions and local governments. We are providing as much support
as possible to the dedicated healthcare professionals in this difficult
situation.

Q

Production of medical face shields

Given the impact of COVID-19,
what is your perspective on the future business direction?

It is difficult to foresee what the post-COVID-19 world will be like as
the situation keeps changing from day to day. Nevertheless, we donot think a drastic change is needed in our policy of promoting growththrough two business pillars, namely the Materials Handling Equipment
Business and the automobile-related businesses.
We do, however, have to take into account various factors, including
the impact on our businesses of the ongoing changes in various needs
caused by COVID-19. The following summarizes our planned efforts
over the near term.

L Efforts in Core Businesses
Materials Handling Equipment Business
There has been growing demand for higher logistics efficiencies andlower logistics costs driven by an increase in e-commerce demandand labor shortages. COVID-19 is expected to accelerate the trend.
Greater expectations are also placed on automation and autonomous
driving technologies for their potential important role in preventing
infection. We have already engaged in the development of automation
systems for better logistics efficiencies all around the world. In Japan,
we have developed an autonomous robot to automatically deliver drugs
and various test samples within a university hospital, thus contributing
to the reduced workload of healthcare professionals. In Europe, ourautomated lift trucks have been operating in a food manufacturing plant,
both ensuring good hygiene and successfully reducing the work doneby human workers under low temperatures. We have also provided
an advanced solution combining a logistics system and automatedlift trucks to a distribution center of a leading retailer and helped thecustomer increase its productivity.

14

Toyota Industries Report 2020

Robot transfer system (university hospital)

Automated lift truck(food manufacturing plant in the Netherlands)

In the materials handling equipment sector, market growth isexpected to continue well into the future. At Toyota Industries, thisbusiness is regarded as a stock-type business that provides support
to customers in various areas, such as after-sales services and sales
financing, along with equipment and systems.
We intend to encourage collaboration between the Lift TruckBusiness, for which we boast the world’s top share*, and the Logistics
Solutions Business, which we have been strengthening jointly with
two subsidiaries, namely Bastian Solutions LLC and Vanderlande
Industries Holding B.V., in response to the particularly growing needs inrecent years. By doing so, we aim to respond to the changing needs ofcustomers more accurately and achieve sustainable growth.
* Survey by Toyota Industries Corporation

Automobile-Related Businesses
With the idea of social distancing consciously beginning to take root,
the value of cars has been reconsidered as a means of mobility that
ensures personal space. We will continue to pursue growth in this field
by leveraging the strengths of engaging inbusinesses related to an entire automobile,from vehicle assembly to the manufactureof car air-conditioning compressors,
engines and electronics products.
• Car air-conditioning compressor: Even
though the automobile market may needsome time to recover, we will work toincrease sales over the medium to longterm on the back of an upward trend
in automobile sales and an increasein the number of vehicles fitted with an air conditioner. We expect
particularly strong growth in demand for electric compressors. We
have accordingly developed a large-capacity model used not only forvehicle interior air conditioning but also for cooling batteries and otherheat-emitting devices of electrified vehicles.
• Vehicle: Toyota Industries manufactures the new RAV4, which wasselected as the Car of the Year Japan 2019-2020 and became thefirst vehicle of Toyota Motor Corporation (TMC) to receive the award
in a decade. We also undertook the vehicle’s exterior design andupper-body development. Being involved in the production of a
globally popular model is a great morale booster for our plant workers.
In June 2020, we started manufacturing TMC’s new RAV4 plug-in
hybrid electric vehicle. The car is selling well, as it offers a long driving
range in the battery electric vehicle (BEV) mode and an external

New RAV4 winning the Car of the Year Japan
2019-2020 award

Feeding power at an evacuation shelter
Photo courtesy of Car & Leisure News

15

Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Top Message

power supply function to feed power to home electric appliances
during disasters and other occasions. We completed renovations ofour vehicle assembly plant two years ago, transforming it into a plantwith even greater competitiveness. We will continue to advance our
productivity and quality to increase our role within the Toyota Group.
• Engine: Diesel engines still have room for growth as an effectivemeans of mobility in inland China, Africa and other emerging
countries. We assume a significant role in improving the performanceof these engines in environmental and other aspects. Amid theprogress of car electrification, hybrid vehicles (HV) still require highperformance engines. We intend to leverage our strengths in this field
as well.
• On-board battery: With car electrification gaining momentum, we
have decided to start the development and production of a newbattery. Utilizing our technologies cultivated in the development ofbatteries for lift trucks, we will develop a high-output, compact, longlife and low-cost battery for adoption in TMC’s HVs. This is a fiercelycompetitive sector on a global scale, but we intend to prevail with ourstrong product appeal and turn it into a business that underpins the
future of Toyota Industries.

Q

What about the future direction of management?

To be honest, the profound impact of the COVID-19 pandemic makes
it a challenge for me personally, and probably for many business
managers as well, to deliver a message this year. The situation keeps
changing, and we see different news every day. We thought the infection
began to subside at one point but then have to worry about a second
wave and the spread of the virus in the Southern Hemisphere. The
good news is that the development of vaccines is proceeding andFounder Sakichi Toyoda
Toyoda Precepts
economic activities are resuming; however, the bad news is that there(corporate creed)is growing concern about the pandemic becoming prolonged. Manyexperts are providing various views about
the post-COVID-19 world, but the truth isToyoda Precepts (Corporate Creed)
no one knows for sure, or perhaps, it is justCarrying out the spirit of founder Sakichi Toyoda,
meaningless to speculate at this point.
• Always be faithful to your duties, thereby contributing to the Company and tothe overall good.
What is important now is to uphold our•Always be studious and creative, striving to stay ahead of the times.
basic sense of value and calmly and steadily• Always be practical and avoid frivolousness.
do what we can. As the situation changes,• Always strive to build a homelike atmosphere at work that is warm and friendly.
we have to think hard and find our own, right• Always have respect for God, and remember to be grateful at all times.
course of action.

16

Toyota Industries Report 2020

The Toyoda Precepts (corporate creed), which embrace thespirit of founder Sakichi Toyoda, represent Toyota Industries’ basic
sense of value. Since our founding, we have always gone back to
our philosophy encapsulated in these precepts and endeavored toprovide products and services truly needed by customers. I believe ourapproach aligns with the objective of the United Nations’ Sustainable
Development Goals (SDGs).
As shown in the “Efforts in Core Businesses” section of thismessage, our business structure is akin to a conglomerate. Among ourdiverse businesses, we have explored how we should prioritize themand allocate resources to each in the face of the ongoing pandemic
that is having an enormous impact on our society and economy.
We have come up with several ideas and options on how to do this.
However, it is now too early to decide on which idea or option to
implement, and we will need to make flexible responses as we see fit
toward the changing situation.
In Conclusion
Japan experienced a series of national crises over a period of about
25 years, including the Spanish flu epidemic in 1918, the Great Kanto
Earthquake in 1923 and its defeat in World War II in 1945. The country
has risen from the devastating damage of each crisis through thestrenuous efforts of the people of that time. The environment we live innow significantly differs from the one in the past, but I think we can learn
many lessons from how these people witnessed and recovered fromeach catastrophe.
Even though there is a common perspective that it will takeconsiderable time for COVID-19 to subside, cooperation is alreadyunderway in the healthcare field to develop vaccines and drugs. I believethat promoting such cooperation between countries, regions andbusinesses will be essential for our recovery in the future.
At Toyota Industries, we intend to overcome the current crisis bysharing best practices and making concerted efforts among our globally
operating businesses.
In recent years, we have been witnessing growing uncertainty caused
by geopolitical issues, natural disasters, and of course, infectious
diseases including COVID-19. Amid this environment, we will continue
to pursue sustainable growth by leveraging our technologies, know-how
and experience cultivated in our diverse businesses to adapt to a varietyof changes and by working even more closely with other companies in
the Toyota Group.
We will meet the expectations of our stakeholders through acontinuous relationship built from a long-term perspective.

Major Events That Affected Japan
1918 –

Spanish flu epidemic

1923

Great Kanto Earthquake

1930 –

Great Depression– 1945World War II

17

Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Special Feature 1

Special Feature 1
Status of the Materials Handling Equipment Business

Strengths of Our Materials Handling Equipment
Business Aiming for Sustainable Growth

L Business Composition

Since launching the production of lift trucks in 1956, the Materials Handling Equipment Business has grown into Toyota
Industries’ mainstay business through increased product appeal, an improved ability to provide excellent services and anenhanced network. In the meantime, the development of the global economy, innovation of information-related technologies
and expansion of e-commerce and other new industries have generated new, growing needs in the logistics field. Toyota
Industries has responded to such needs and assisted customers in increasing logistics efficiencies by not only offering materials
handling equipment as well as logistics systems and equipment but also by focusing on logistics improvements and solutions.
This Special Feature highlights the strengths and initiatives of our Materials Handling Equipment Business that strives toexpand business by combining lift trucks and logistics solutions.
SeaportDistribution andmanufacturingindustries

The Materials Handling Equipment Business is Toyota Industries’ core business, accounting for 66% of total sales. Lift trucks,
our mainstay product, enjoy the world’s No. 1 market share*, while our Logistics Solutions Business is one of the largest in theworld*. Sales of equipment and those from our stock-type business generating relatively stable revenue, such as after-sales
services and sales financing, respectively account for about 40% of total sales in the Materials Handling Equipment Segment.
We are working to achieve maximum results by leveraging our business structure we have strengthened to date.
Logistics solutions, on which we have been focusing in recent years to respond to emerging needs, make up a rather small
portion of the total sales of the Materials Handling Equipment Business. However, we believe that the business has great growthpotential and have been collaborating with two subsidiaries, which we acquired recently, directed toward expansion.
* Survey by Toyota Industries Corporation

Sales Breakdown by Business Segment
TextileMachinery3%

Distribution
centerOthers3%

FY2020Net Sales¥2,171.3
billionMaterials
Handling
Equipment

66％

Automobile
28%

Toyota Industries’
Global Lift Truck Market Share(Survey by Toyota Industries
Corporation, 2019)

Toyota Industries’ materials
handling equipment as well
as logistics systems andequipment support logistics
operations of customers
worldwide at distribution
centers, manufacturing
sites, seaports, airports andother locations.

AirportEnvironment Surrounding Logistics
The need for higher logistics efficiencies is growing, driven by an expected increase in logistics volume over the medium to longterm on the back of further growth of the global economy, coupled with a rise in labor costs mainly in emerging countries andlabor shortages in developed countries. Besides conventional logistics operations using lift trucks, an expansion of e-commerce
has increased the need for handling smaller parcels. In this way, customers’ logistics-related needs have also become
increasingly diversified.
GDP by Region

Labor Population in Key Regions (Ages from 15 to 64)(US$ trillion)(Million persons)

250

2,000

200

OthersChina

150

EuropeU.S.A.

100

Japan

50
0

13

20

25

30

35

40

(Year)

Source: Produced by Toyota Industries based on the U.S. Energy Information
Administration’s International Energy Outlook 201718

Toyota Industries Report 2020

Africa

1,500

India
China

1,000

EuropeU.S.A.

500
0

Japan

15

20

25

30

35

40

45

50

(Year)

Source: Produced by Toyota Industries based on the United Nations’ World Population
Prospects (2017 Revision)

Summary of Sales in the Materials
Handling Equipment Segment
Logistics solutions
Approx. 20%
Value chain in the
Lift Truck BusinessApprox. 40%

Sales financing,attachments andother components
After-sales
services, spareparts and others

Sales of lift trucks andother equipment
Approx. 40%

ToyotaIndustries

19%

World No. 1

Toyota Industries’ Position in the Logistics System Supplier Industry
1.
2.

Toyota Industries Group3.
4.
5.
6. Vanderlande
7.
8.
9.
10.
11.
12.
13.
14. Bastian Solutions
15. Toyota Industries Corporation
16.
17.
18.
19.
20.

Net sales

Source: Produced by Toyota Industries based on the Top 20 Worldwide Materials
Handling System Suppliers in 2020 by Modern Materials Handling magazine

L Initiatives for Future GrowthInnovation spurred by CASE (connected, autonomous, shared and electric) technologies in theautomobile industry is also advancing in the materials handling equipment industry. Based on our
broad product lineup and accumulated know-how in logistics improvement, we are strengthening
our initiatives in this area for further growth.
Connected: Systems that offer advanced operational management by connecting lift trucks
and other equipment to the Internet and collecting relevant data have become popular mainly
among large-order customers. In addition to increasing the efficiency of logistics operations, thesesystems visualize and analyze such variables as the operational status and battery consumption ofeach lift truck and help improve safety and save energy.
Autonomous: Lift trucks are used for logistics operations mostly in plants and warehouses.
Because they operate in such limited locations, work standardization and automation are easiercompared to automobiles. We added automated guided forklifts (AGF) to our lineup in the 1980s
and have been accelerating the development of products that leverage our automation technology
in response to the growing need for higher logistics efficiencies.
Solution: At Toyota Industries, “S” is defined as “solution,” through which we seek to solve
logistics issues and make proposals for increasing efficiencies. In this endeavor, we go a stepbeyond straightforward automation. We have been strengthening initiatives on a global basis
to provide logistics solutions that are suited to the type and scale of customers’ businesses,
accurately capture their individual needs and that are packaged as optimally designed systems.
Electric: The introduction of electric lift trucks has started early on in the materials handlingequipment industry as customers in certain sectors are required to satisfy zero emissions andother clean performance standards. Currently, more than 60% of lift trucks sold in the world
market are electric. At Toyota Industries, the ratio is more than 70%. We respond to customers’
diverse needs by developing and increasing the lineup of products, including models equippedwith lithium-ion batteries and fuel cell lift trucks.
Among our CASE initiatives, the following pages provide example initiatives in the “S” (solution)and “A” (autonomous) fields, which have been drawing increasing attention from customers.

Operational management system

Fuel cell lift truck

19Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Special Feature 1

Example1

Example2

Initiatives in the Logistics Solutions Field

With the acquisition of Bastian Solutions LLC and Vanderlande Industries Holding B.V. in 2017, we set up a structure tooffer an even broader range of logistics solutions to more customers. The three companies, including Toyota Industries,
have been working together and successfully created new business opportunities.

L Collaboration of Bastian and Vanderlande in the Development of Image
Recognition Technology
At warehouses and distribution centers, order picking to pick up ordered items from stock
storage is one of the most important operations and reducing pick-up errors is essential inincreasing productivity. Many processes at logistics sites have already been automated andcontributing to higher productivity. However, automation of the order picking process has
not proceeded, as picking up correct items of varying forms and materials poses a technicalchallenge.
Bastian and Vanderlande, which each develops automated picking systems
independently, have formed a joint team to accelerate the development of advanced
technologies that satisfy market demand. Instant recognition of the location and shapeof an item and its stored position is crucial in ensuring the correct picking up of items
whatever their shapes are and however they are stored. As such, automation of the process
requires advanced image recognition technology. The joint team is mainly engaging in
the development of this technology and aiming for early commercialization by increasing
accuracy through feasibility tests using order picking robots of each company.
We will continue to deepen the collaboration between the two companies and develop
technologies and systems that will contribute to greater logistics efficiency.

Initiatives Related to Automation

Since starting the production of lift trucks in 1956, our efforts have been geared toward logistics automation in the future.
We started producing magnetic-type automatic guided vehicles (AGVs) and AGFs in the 1980s and have since beenworking to increase the lineup in this area. Toyota Industries’ AGVs accurately capture the varying needs of each logistics
site, such as carrying industrial products in plants or warehouses, conveying baggage at airports and transporting large
containers at seaports, thereby contributing to customers’ improved logistics efficiencies.
Going ahead, we will further bolster the development of AGVs and AGFs while leveraging our image recognition andother cutting-edge technologies and promoting collaboration with external organizations.

L Taking on a Challenge of Automating Outdoor Operations

Example of image recognition

Capitalizing on our technology and know-how for autonomous driving obtained through thedevelopment of AGVs and AGFs for indoor use, we have been developing technology for
automated operations outdoors, for which needs are growing.
We have conducted outdoor feasibility tests of our AGFs at several locations, including afacility shipping agricultural products. Outdoor automated operations pose a far greater challenge
than indoor operations because of uneven surfaces and irregular cargo locations. We have also
carried out two autonomous driving tests of our towing tractors, which transport baggage andother items at airports, under different conditions. Our focus is to promote the development ofsystems that can ensure safe and smooth automated operations and cargo transportation at aplace crowded with various types of vehicles.
In the future, we will repeatedly conduct feasibility tests on automated operations of lift trucks
and various materials handling equipment for swiftly achieving their practical use.

AGF feasibility test

L Evolution of AGVs
L Working Together in Japan for a Global Delivery Service Operator
through the Collaboration of Vanderlande andToyota Material Handling JapanOne of the important customers of Vanderlande is the world’s largest-class operator
engaging in international delivery services. Up to the present, Vanderlande has built systems
for the operator’s distribution centers in many countries, but lacking a base in Japan, had notbeen able to support them in this regard. On the other hand, Toyota Material Handling Japan,
which is responsible for Toyota Industries’ Lift Truck and Logistics Solutions Businesses, hasbeen developing and selling materials handling systems and equipment in Japan, but insome cases could not fully satisfy customer needs, including the above-mentioned operator,
due to its limited system and equipment lineup.
Meanwhile, Toyota Industries has appealed the strengths of the entire Groupencompassing Bastian and Vanderlande to a broad audience through trade shows and otheropportunities. At the same time, we have concentrated on the establishment of a structure tosell and provide support services for a wide range of Vanderlande’s equipment and systems
in Japan.
These efforts have enabled us to offer the full spectrum of logistics systems in Japan,
including those of Vanderlande, and we received an order from the said operator for the firsttime for a project for a distribution center in the country.

Vanderlande’s CROSSBELT SORTER

Web

Utilizing AGVs for which we have been engaging in the development for many years, we are making
efforts in achieving a more advanced level of logistics automation. With distribution centers
becoming increasingly larger, one challenge is to reduce the workload of operators carrying items
during a process that involves picking up ordered items from storage shelves. In response, we have
utilized our experience in AGV development to create an autonomous logistics robot that tracks thepicking operator at a certain distance and can be summoned or directed to a specified location at
the beginning or end of work. We are accelerating our development efforts for its commercialization
based on the results of feasibility tests undertaken at logistics sites of our customers.
Among our products for use in airports, for which we expect growth in the number of users
over the medium term, we have been focusing on the commercialization of autonomous AGVs.
An autonomous baggage handling system developed by Vanderlande, in particular, has alreadygone into full-scale operation in Rotterdam The Hague Airport. The system can flexibly
accommodate layout changes on the operating route and system expansions. Efforts are also
underway to integrate AGVs manufactured at one of our lift truck production bases in Europe into
the system. We are stepping up efforts to increase its use mainly at hub airports around the world
as an epoch-making system that replaces conventional conveyors.

Autonomous logistics robot

Autonomous baggage handling systemused in airports

Web
Link to system details.

Link to sorter details.

Message from the Director
In the Logistics Solutions Business, Group companies complement each other in terms of geographical coverage and thesize and business category of target customers through increased collaboration within the Group, and we can now offer
solutions that combine the “hardware” and “software” of each company. Collaboration with the Lift Truck Business has
increased opportunities to offer an even broader set of logistics solutions to customers using our lift trucks. Based on ourcomprehensive strengths, we seek to accurately respond to our customers and further realize business expansion.

20

Toyota Industries Report 2020

Logistics needs have become increasingly diversified and have continued to change. Leveraging our
experience and know-how accumulated while working with customers worldwide, we seek to develop
products and services that go a step ahead of the times and offer optimum solutions to individual
customers. Fueled by an accelerated expansion of the e-commerce market as a result of the spread of
COVID-19 and other factors, needs in the logistics solutions field are on the rise, which in turn is expectedto advance the mechanization and automation of logistics operations. As a response to the changing
environment, we are working to expand business by further strengthening the collaboration of Bastian,Vanderlande and Toyota Industries, each of which possesses different strengths. We aim to become theworld’s leading logistics solutions provider to help customers resolve their logistics-related issues byharnessing our strengths in engaging in the two businesses of lift trucks, for which we enjoy the world’s top
market share, and logistics solutions, for which significant growth is expected in the future.

Yojiro Mizuno
Director andSenior Executive Officer

21

Special Feature 2

Autonomous baggage
handling systemused in airports

Leveraging the Strengths ofDiverse Businesses to Adapt toChanges and Seek Sustainable Growth

Fuel cell lift truck

LA-type internalcombustion
lift truck

Changes in customer needs and advances in technology have been
Materials Handling Equipment
proceeding at an increasing pace. There has also been lingering
Utilizing automobile-related basic
uncertainty about political and economic prospects. Amid thistechnologies in developing andmanufacturing lift trucks
environment, Toyota Industries believes that engaging in multiple
businesses with different strengths, as opposed to focusing solely on
EngineVehiclea specific business, will allow us to adapt to changes and achieve
Applying foundry and other technologies forsustainable growth through complementary collaboration among
textile machinery to the automobile-related
1953–
businesses
Diversification of Businesses
these businesses.
This Special Feature presents some of our initiatives to promotesustainable growth by leveraging the strengths of our diverse
businesses.

Branching out into the automobile-related
businesses in pursuing businessdiversification during the recession in theearly 1950s in Japan, thereby capturingneeds arising from the growing domestic
automobile industry

Automatic truck
loading andunloading robot

Simple AGV(automatic guided
vehicle)Unit-type automatedstorage andretrieval system

Aerial work
platform
FB15 electric
lift truck

Engine forhybrid vehicles

Developing electronic components for lift trucks led tolaunching development and production of electronic
components for materials handling equipment andautomobile-related products

Publica pickup truck

RAV4

DC-DC converter
GD diesel engine

Fixed-displacement
type compressor

Compressor

S-type gasoline
engineElectric
compressor

Electronics

Static induction transistor

Variable-displacement
type compressor

Entering the car air-conditioning compressor
business by combining technologies accumulated
in the automobile-related businesses with theoutcome of research on room air conditioners
JAT810 air-jet loom

Textile Machinery

1926–
The Beginning

RX300 ring spinning frame

Establishing Toyota Industries to manufactureand sell the Type G automatic loom invented
and completed by founder Sakichi Toyoda

History of Business Expansion to Date
After conducting a great deal of research, founder Sakichi
Toyoda invented the Type G automatic loom with anaspiration to “contribute to society through monozukuri(manufacturing).” Toyota Industries, founded to manufactureand sell the loom, had concentrated on expanding thisoriginal business but started seeking business diversification
during the recession in the early 1950s.
At that time, the growing automobile industry in Japanwas generating new needs. To capture these needs, wefirst branched out into the engine and vehicle assemblybusinesses by utilizing foundry and other technologies
accumulated in the textile machinery field. Then we
started developing and manufacturing car air-conditioning
compressors. As labor shortages prompted a rise in the needfor streamlining cargo handling, we directed our attention
to lift trucks that have a number of components similar toautomobiles such as an engine and launched developmentin this field. Moreover, capitalizing on our technology andknow-how accumulated in the development and in-houseproduction of electronic components for lift trucks, weentered the electronics business, offering electronics products
also for automobiles.
In this way, we have constantly taken on the challenge ofcreating new value based on our own strengths and achieved
continued growth, always upholding the philosophy of“contributing to society” since our founding.

22

Toyota Industries Report 2020

JA air-jet loom
RI high-draft ring spinning frame

Efforts to Deepen Collaboration among
Businesses to Generate Ideas
Previously, business divisions of Toyota Industries had madedevelopment efforts individually, and in some cases, had notbeen able to fully leverage the necessary technical informationor know-how and knowledge accumulated in other divisions.
In recent years, the R&D Headquarters, an organization
responsible for promoting research and development, hasbeen assuming the role of ensuring horizontal alignment andpromoting collaboration among the business divisions.
As these business divisions face similar technical issues
and possess many common elemental technologies, we havebeen devising effective ways to generate synergies among
them by collecting, disseminating and sharing information andproviding opportunities for technical exchange.
We believe that these day-to-day efforts have helped
us upgrade and increase the efficiency of our development
activities.
For information gathering, we provide various formsof support. Examples include issuing Toyota Industries
Technical Review, a magazine on technical information related
to product development and monozukuri; disseminating
information on changes in the R&D environment, including
economic conditions in each country and the trends in thematerials handling equipment and automobile industries;
and presenting examples of companies having technologicalexcellence. As opportunities for technical exchange, we

Quality measurement
instrument for fiber,yarn and fabrichold Company-wide technology exhibitions of products
and production engineering examples of each businessdivision and meetings of the Council of Heads of Engineering
Departments as a place for heads of the engineering
departments of each business division to exchange
information. Through these opportunities, we back up efforts
to share and utilize technologies within Toyota Industries.

Web
Web

Link toTechnical Review(in Japanese).
Company-wide technology exhibition(December 2019)

Toyota Industries
Technical Review

Example Outcome of Interdivisional Collaboration

1

Development of Hydrogen Circulation Pump and Inverter for Fuel Cell Vehicles

Compressor

Electronics

Background of Development

Kazuho Sato
Project leader
FC Project
Compressor Division(As of March 31, 2020)

Toyota Industries’ hydrogen circulation pump and control inverter are fitted in a fuel cellvehicle (FCV) of Toyota Motor Corporation (TMC), which only emits water when driven andgreatly contributes to a reduction of CO2 emissions. As an FCV runs on electricity generated
through a chemical reaction of hydrogen and oxygen, it significantly differs in structurefrom an internal-combustion vehicle. With a pool of compression technology accumulated
in the Car Air-Conditioning Compressor Business and motor, inverter and other elemental
technologies, however, we had faith in our ability to create a hydrogen circulation pump andinverter, two of the key components of an FCV critical to its driving performance. Applying
these technologies, we launched development of the two components and succeeded inmass production.

23

Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Special Feature 2

Utilization of Existing Technologies

Fruits of Collaborative Development

InverterDeveloped by the Electronics Division

Hydrogen circulation pump
Developed by the Compressor
Division
Efficiently circulates unreactedhydrogen and water generated in theelectricity generation process.
Successfully developed a new,low-cost hydrogen circulation
pump that is highly efficient, morecompact and lighter weight byapplying compression, motor andproduction engineering technologies
accumulated in the car airconditioning compressor field.

Performs drive control of the pump witha minimum amount of electricity.

Diesel hybrid system forconstruction machinery

Developed a highly efficient inverter fora hydrogen circulation pump at a low
cost by applying inverter engineering
technologies accumulated in the electric
car air-conditioning compressor field.

Offers a 40% better fuelefficiency while maintaining
high power performance.

Diesel engine Developed by the Engine Division
Satisfied exhaust gas regulations without using aurea Selective Catalytic Reduction (SCR)*1 system
for the first time in the world*2 and achieved lower
running costs by eliminating the need for refillingurea while maintaining durability.

Control software
Developed by the Compressor Division
Quickly developed a high-quality control
software program by applying software
programs for electric car air-conditioning
compressors.
Equipped in the ZH200-6 hybrid excavator of
Hitachi Construction Machinery Co., Ltd.

Motor

Completing a Hydrogen Circulation Pumpby Overcoming Major DevelopmentRelated Challenges through Close
Interdivisional Collaboration
We received various requests from TMC as it underwent
the process of trial and error for the development of an FCV.
One of them, in particular, related to the need to ensuresmooth start-up and operation of the vehicle in sub-zerotemperatures. In response, the circulation pump and inverter
development teams worked together and improved thepump’s startability and controllability. They also had repeateddiscussions from various perspectives for the alignment ofwork on the activation of an inverter at high temperatures.

The previous collaboration between the Compressor
Division and Electronics Division in developing an electriccompressor enabled us to quickly overcome the challenges
in the new field. These divisions smoothly forged ahead
with the development of respective products while mutually
taking into account the impact of their own product on theother’s product. This led todevelopment activities that
focus on overall optimization,transcending individual
products. Other benefits
included less time spent on
discussion with the customer
and increased efficiency inproject flow.

We successfully developed products that generate new added value by bringing together andharmonizing elemental technologies cultivated in each business division.
Toward car electrification, the development of diverse products will become increasingly
important in the future. We intend to leverage our advanced collaborative structure to provide
new products through swift development efforts at a high level.

Example Outcome of Interdivisional Collaboration
Development of a Diesel Hybrid System for2
Construction Machinery

Materials Handling
Equipment

R&D Headquarters

EngineElectronics

Background of Development

Kenichi Katae
General Manager
Engineering Dept. No. 2
R&D Headquarters(As of March 31, 2020)24

Toyota Industries Report 2020

Since going into effect in 1991, the exhaust gas regulations for construction machinery havebecome progressively more stringent, and energy-saving needs have been also growing
considerably. Against this backdrop, a leading construction machinery manufacturer has
been promoting the development of environment-friendly hybrid excavators. We became
the manufacturer’s first choice as its partner because we had already had experience indeveloping hybrid systems, with Toyota Material Handling Japan initiating sales of a hybrid lift
truck in 2010. The idea was to apply technologies we have cultivated in the electric lift truck
field and in the Electronics Business to a hybrid system for construction machinery. Multiple
business divisions of Toyota Industries accordingly started collaborating and developing key
components, including an engine and a motor.

Developed by the Engineering Dept.
No. 2, R&D Headquarters

PCU (controlling motor’s rotational speed)

Offers high output and high efficiencies
through an engine with a built-in motor,
which can be fitted into the conventional
engine space.

Is based on a compact and highly efficient PCU for hybrid vehicles
and offers improved cooling performance and vibration resistancematched to construction machinery.

Developed by the Electronics Division*1: Means to convert NOx*2: Survey by Toyota Industries Corporation

Realizing a Hybrid System for Construction
Machinery by Integrating Highly Functional
Components
The most crucial challenge was how to realize an optimum
system for construction machinery used in a considerably
harsher environment than automobiles. To overcome thischallenge, the Engineering Department No. 2 of the R&D
Headquarters conceived the optimum design of the overallsystem, and each business division embarked on thedevelopment of an optimum component using the design as
a starting point.
Specifically, we had to install components of the hybrid
system, including an engine, motor and power control unit
(PCU), into the conventional engine space. To accommodate
more components, we needed to reduce the overall size,
and at the same time, had to ensure the level of performancerequired for construction machinery. Taking on a challenge we
had never faced before, the relevant business divisions joined
forces and used their ingenuity to find a solution, which led toquickly developing a high-quality system.
Furthermore, we believe that already having a lift truck
as a finished product in our lineup enabled us to take aholistic view in developing a hybrid system for construction
machinery that is mechanistically similar to lift trucks. The
result was a system that has realized a 40% higher fuelefficiency than conventional internal-combustion excavators,
while maintaining the equivalent level of power performance.
Added value

System businessHigh

HV/PHV
Unit business

EV

FCV

EngineInverterBattery

Compressor

Systemintegration

Motor
Low
Small

Domain for work alignment

Large

HV/PHV : Motor, inverter, battery and engine
EV : Motor, inverter and battery
FCV : Motor, inverter, battery, oxygen-supplying air compressor and		 hydrogen circulation pumpToyota Industries has a number of core technologies required in electrified products, suchas hybrid vehicles (HV), plug-in hybrid vehicles (PHV), electric vehicles (EV) and FCVs, which
are expected to become more diversified in the future. Going ahead, we intend to respond toelectrification both in the materials handling equipment and automobile fields and swiftly deliver
the required products to the world by combining components from these two fields and offering
them as an integrated system.

25

Company Introduction

Strategies and Businesses Promotion of ESG Initiatives
Business Activities

Business Activities
Materials Handling Equipment — P26–30 Automobile (Vehicle / Engine / Car Air-Conditioning Compressor / Car Electronics) — P31–36

Textile Machinery — P37

	Business Structure

Web

Materials Handling Equipment
As a market leader with an extensive knowledge of global logistics needs, Toyota Industries provides
a range of materials handling equipment, mainly lift trucks, and logistics solutions to customers.

Link to productdetails.

We will work to develop and propose new products and services incorporating cutting-edge technologies through theproactive use of open innovation and co-creation with customers.
Our goal is to become the logistics solutions partner of the first choice for customers by meeting their wide-ranging
needs and helping them increase their logistics efficiencies based on the Toyota Industries Group’s comprehensive strengths
covering both the lift trucks and logistics solutions fields.

	Business Characteristics
Opportunities• An extensive logistics-related product lineup both in the fields of materials handlingequipment (internal-combustion lift trucks, electric lift trucks, fuel cell (FC) lift
trucks, etc.) and materials handling systems (automated storage and retrieval
systems, automatic guided vehicle (AGV) systems, automated lift trucks, etc.)• High technological capabilities, including those linked to environmental and safety
performance• Production know-how that ensures high levels of quality and production efficiency• Global, well-developed production, sales and service networks• An extensive value chain encompassing in-house development and production ofengines, motors and other key components; total after-sales services including
maintenance and inspections as well as operational management; and sales
financing operations offering more options in sales• No. 1*1 in lift truck unit sales in the world• A wealth of experience and know-how as well as a global network in the Logistics
Solutions Business• Software development capability to create such systems as a warehousemanagement system• An expansion of global logistics volume in line with an increase in the world
population and economic growth• Growing need for products with high energy savings and low environmental impact
following enforcement of more stringent environmental regulations around the world• Growing need for electric lift trucks driven by a rise in eco-consciousness• Rising need for higher logistics efficiencies prompted mainly by a growth in
e-commerce transactions as well as soaring labor costs and labor shortages

Risks• Restrained capital investment due mainly to a slowing economy and disasters• Weaker sales due to intensifying competition• Change in business environment triggered by an expanding market of low- to
mid-priced lift trucks• Suspension of production caused by supply chain disruptions*1: Survey by Toyota Industries Corporation

FY2019Net Sales

FY2020¥1,466.6 billion

1,436.3 billion¥

Toyota Industries’ Materials Handling Equipment Business
is operated under a two-organization structure: Toyota
Material Handling Group (TMHG) responsible for the Lift
Truck Business and Toyota Advanced Logistics Group(TALG) engaging in the Logistics Solutions Business. TMHG
and TALG collaborate with each other to achieve overall
growth of the Materials Handling Equipment Business while
reinforcing individual businesses.

	Toyota Material Handling Group (TMHG)

Medium-Term Direction of Business

Strengths

Operating
Profit

FY2019¥114.6 billion

FY2020102.2 billion¥

Toyota Industries assists customers worldwide in attaining
greater logistics efficiencies as a market leader in thematerials handling equipment and logistics fields bydelivering logistics solutions optimally tailored to their
specific and ever-changing needs.
Under the TMHG management structure, we engage inthe Lift Truck Business under the TOYOTA, BT, RAYMOND,CESAB and Tailift brands. Mutually utilizing the development
and sales strengths of each brand, TMHG is promoting
business on a global scale.
We basically carry out product development in three
regions, namely Japan, North America and Europe. Basedon this structure, we develop and manufacture products ineach region, which are matched to the specific local needs
and characteristics, and ensure quick product delivery tocustomers. At the same time, we seek greater productappeal by conducting in-house development and productionof key components of lift trucks, including engines
and motors. In response to the enforcement of stricter
environmental regulations and growing eco-consciousness
worldwide, we are improving the energy-saving performanceand enhancing our electric lift truck lineup. We are also
promoting development of autonomous driving technology
as a response to growing needs for greater logistics
efficiencies mainly driven by labor shortages.
In addition to supplying high-quality products, we haveestablished a structure to support customers throughout
our entire value chain that encompasses from providing
after-sales services through our extensive networks tooffering sales financing operations. We contribute to greater

logistics efficiencies based on our comprehensive strengths
in satisfying varying needs of customers worldwide. On
the sales front, we are offering products and logistics
improvement solutions optimally matched to individual
customers’ logistics sites. Simultaneously, we are seeking toobtain large orders by responding to demands of customers
who conduct business globally. In terms of services,
we assign experienced and knowledgeable personnel
and utilize leading-edge information technology (IT) to
provide finely tailored services to customers. Our service
personnel visit customers on a periodic basis and provide
maintenance services to prevent troubles from occurring.
When a problem does occur, they swiftly make a visit to thecustomer and promptly take appropriate action. We are also
strengthening our internal sales financing operations mainlyin Europe, the United States and other developed countries
in order to respond to customers’ diverse needs in the areaof equipment sales. Additionally, TMHG is collaboratingwith TALG to create synergies between the lift trucks andlogistics solutions fields in development and other domains.

	Toyota Advanced Logistics Group (TALG)
Following an expansion of the e-commerce market,
providing solutions to diverse and complex logistics issues
for distribution centers has become a pressing task, andneeds for logistics solutions have been growing globally.
Amid this environment, we go a step beyond justproviding a broad range of materials handling equipment
and associated software programs and are reinforcing our
Logistics Solutions Business to more meticulously satisfy
each customer’s varying needs by leveraging our logistics
improvement know-how accumulated to date.
Under the TALG management structure, the Logistics
System Engineering Department of Toyota Material HandlingJapan, which mainly engaged in business in Japan, and two
companies that joined the Toyota Industries Group in 2017,
namely U.S.-based Bastian Solutions LLC and Netherlandsbased Vanderlande Industries Holding B.V., are collaboratingwith each other in development, sales and other activities toexpand business while leveraging their individual strengths.

Toyota Material Handling Group

TMHG
Materials Handling Equipment Sales(Thousand units)

250
200
150
100
50
0

26

(FY) 16

Toyota Industries Report 2020

17

18

19

20

n Toyota Industries’
Global Lift Truck
Market ShareBusiness Overview in Fiscal 2020
In the Materials Handling Equipment Business, the lift truck market in 2019
turned downward except for China, where sales continued to increase. Amid
this operating climate, Toyota Industries engaged in sales and after-sales
service activities matched to respective markets. However, unit sales of lift
trucks for fiscal 2020 were down 22,000 units, or 7%, to a total of 278,000
units from the previous fiscal year. As the need for higher logistics efficiencies
is getting increasingly stronger, underpinned by an expansion of the
e-commerce market, Toyota Industries made efforts for further business
reinforcement through collaboration with logistics solutions subsidiaries in the
United States and Europe. Net sales in fiscal 2020 declined by ¥30.3 billion, or
2% year on year, to ¥1,436.3 billion.

300

Corporate Information(Survey by Toyota Industries
Corporation, 2019)

TMHJ

TMHNA

TMHE

TMHI

TMHCN

Toyota Material
HandlingJapan

Toyota Material
Handling
North America

Toyota Material
Handling
EuropeToyota Material
Handling
International

Toyota Material
Handling
China

The Toyota Material Handling Group possesses several brands such as TOYOTA, BT and RAYMOND and engages inbusiness by dividing the world into five areas: TMHJ (Japan), TMHNA (North America), TMHE (Europe),
TMHI (Asia, Australia, etc.) and TMHCN (China).

ToyotaIndustries

19%

World No.1

27

Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Business Activities

Toyota Advanced Logistics Group

TALG
Logistics System
Engineering Departmentof Toyota Material
Handling JapanTALNA*2/
BastianVanderlande*2: Toyota Advanced Logistics North America (Holding Company of Bastian)Under TALG, the Logistics System Engineering Department of Toyota
Material Handling Japan, Bastian and Vanderlande work together topromote the Logistics Solutions Business on a global scale whileleveraging their individual strengths.

	Business Activities in Fiscal 2020
Despite continued growth in China, the world’s lift truck
market in 2019 turned downward with weaker sales inJapan, North America, Europe and emerging countries.
Amid this environment, we worked to enhance the productappeal of our mainstay lift trucks and expand sales. We
also strove to offer reliable after-sales services, enhance
responsiveness to large-order customers and provide
solutions to achieve greater logistics efficiencies through theintroduction of distribution systems.
To meet the diverse needs of customers in the field oflift trucks, we made efforts to increase our product lineup ineach region and promoted the development of autonomous
driving technology internally and with external organizations.
We also worked to reinforce our IT-based services in orderto ensure a more accurate response to individual customers.
In the logistics solutions field, we have been accelerating
coordinated activities as TALG to mutually supply equipment
and systems while encouraging each company to leverage
its strengths to bolster business.
Meanwhile, Aichi Corporation, which possesses the top
brand*3 in the field of aerial work platforms in Japan, enjoyeda growth in demand up until thefirst half of fiscal 2020, driven by
enforcement of strict emissions
standards. However, demand
declined on the rebound in thesecond half. Sales were also
affected by Typhoon Hagibis thatmade a landfall in Japan in 2019and decreased in all industries
except for the leasing industry. As
a result, Aichi’s overall sales were
down from the previous fiscal year.
Aichi Corporation’s*3: Survey by Aichi Corporation

aerial work platform

Activities of TMHG
Japanese Market
The business environment in Japan became difficult as thelift truck market slowed down slightly in 2019. It was further
compounded as the production of lift trucks at a Toyota
Industries plant was suspended due to a disruption of parts
supply following Typhoon Hagibis. Unit sales of Toyota
Industries’ lift trucks consequently declined by 6% year on
year to 45,000 units in fiscal 2020, but still maintained the top

28

Toyota Industries Report 2020

position*4 in calendar 2019 for the 54th consecutive year.
In recent years, customer needs have become
increasingly diversified in line with changes in the businessenvironment, including an expansion of the e-commercemarket, labor shortages and growing safety andenvironmental consciousness among companies. As theleading manufacturer of materials handling equipment,
Toyota Industries has been proactively promoting therelease of new products that lead to resolving issues facing
customers.
For example, wereleased an FC lift truck forthe first time in Japan*5 in
2016. This 2.5-ton model
has been highly acclaimed
by customers not only for
its excellent environmental
performance of not emitting
1.8-ton FC lift truck
CO2, NOx and other gases
while in operation but also
for its great convenience of completing hydrogen charging
in about three minutes. More recently, we added a 1.8-ton
type as growing environmental consciousness pushed upneeds for smaller models. As part of efforts to enhance thelineup of FC models, we have also conducted a feasibility
test of an FC towing tractor.
Needs are also growing for the automation of materials
handling equipment to reduce logistics work and improve
efficiencies. In response, we have carried out autonomous
driving tests of our towing tractors jointly with All Nippon
Airways Co., Ltd. within restricted areas at Kyushu-Saga
International Airport and Chubu Centrair International
Airport. We have also joined the Consortium for OpenField Agricultural Robotics*6 engaging in research anddevelopment for labor saving in the agricultural field. Ourpart in the project is to develop a lift truck that autonomously
loads cargoes onto a truck.
In February 2020, we participated in Logis-Tech Tokyo –INNOVATION EXPO – under the concept of “Exact Solutions
to Your Logistics.” We ran the largest booth among theparticipating companies and showcased to some 22,000
visitors our latest logistics solutions, including the Key Cart
automatic guided vehicle (AGV) based on simultaneous

Toyota Industries’ booth at Logis-Tech Tokyo

localization and mapping (SLAM) technology and the AiR-T
autonomous intelligent mobile robot.
*4: S urvey by Toyota Industries Corporation based on data published by Japan Industrial
Vehicles Association*5: Survey by Toyota Industries Corporation*6: C onsortium engaging in a research and development project, selected as an Innovative
Technology Development and Immediate Deployment Project (in the category of Future
Agriculture Creation Projects Using Artificial Intelligence) of the National Agriculture andFood Research Organization’s Bio-oriented Technology Research Advancement Institution	North American Market
With a year-on-year decline in the North American lift truck
market in 2019, Toyota Industries posted unit sales in fiscal
2020 of 92,000 units, down 7% from the previous year,
but still remained the market share leader*7 in 2019.
Meanwhile, parts sales and orders for after-sales services
remained strong.
Amid this environment, Toyota Industries is proactively
pushing ahead with product lineup and functional
enhancements both under the TOYOTA and RAYMOND
brands.
Toyota enhanced its
electric product offering not
only with the release of a 1-tonelectric lift truck that has beendeveloped by a subsidiary
in North America based on
local customer needs but also
1-ton electric lift truck
with the addition of a numberof new options to its electric
pallet trucks. The focus was also on battery solutions that
present optimum ways of charging and handling batteries.
Toyota’s efforts for improving the competitiveness of its
dealers include operating an after-sales service evaluationand certification system and promoting a program to build aleaner and more efficient business structure in a systematicmanner. Some Toyota dealers have also captured a new
business opportunity by starting to use this program to solve
customers’ problems.
Raymond further
augmented the functionalityof its iWAREHOUSE fleet
management system. It has
evolved into a platform tocentrally manage various
functions associated with
iWAREHOUSE
warehouse equipment, fromthe existing roles to certify
operators, detect collisions and analyze the operational
status of lift trucks to additional features to manage
personnel and provide virtual reality (VR) operation training.
Raymond developed a new system to remotely support
operators’ order picking work and has been leveraging
cutting-edge technologies to assist customers in increasing
their logistics efficiencies.
Additionally, Toyota and Raymond are selling partsand entry-level models and providing safety operations
e-learning materials through e-commerce sites to provide
greater convenience to customers and expand business
opportunities. Toyota and Raymond are also accelerating
technology development for next-generation materials
handling equipment by working closely together with two
universities.
Toyota Industries will continue to promote productdevelopment, sales and after-sales service activities byleveraging the strengths of the two brands. In addition,
through closer collaboration with the Logistics Solutions
Business we will accurately respond to the needs for greater
logistics efficiencies, including those for automation.
*7:

Survey by Crist Information & Research, LLC, 2019	European Market
Although the European lift truck market in 2019 was downfrom the previous fiscal year, Toyota Industries posted unit
sales of 93,000 units in fiscal 2020 on par with fiscal 2019.
In addition to new lift truck sales, orders for after-sales
services and sales of parts remained strong.
In Europe, needs forconnected and automatedlift trucks are growing.
Toyota Industries offers
I_Site, a fleet management
system that enables
customers themselves
Logiconomi Forumto collect and analyze
operational and otherinformation of their lift trucks connected to a network. Morethan 12,000 lift trucks are now using I_Site. We are also
fostering partnerships with outside companies to reinforce
our development capabilities in the fields of automationand other advanced technologies. As part of this effort,
Toyota Material Handling Europe (TMHE), our European
headquarters for materials handling equipment, hosted the
Logiconomi Forum, inviting leading companies in various
industries to give lectures and exchange views.
As for electrification,
TMHE released a newelectric pallet truck withan entirely optimized
structure. The adoptionof lithium-ion batteries
has made the resulting
New electric pallet truck
truck considerably smaller,
lighter, more energyefficient and easier to operate. The truck received the iF
Design Award 2020 for these excellent features. TMHE alsorolled out new internal-combustion counterbalanced lift
trucks surpassing the latest EU Stage V regulations. These
trucks are equipped with internally produced engines, which
offer high efficiency, reliability and maintainability.
We will continue to upgrade the environmental
performance and other functions of our products and help
customers improve their logistics efficiencies by focusing on
automation that leverages the latest technologies.

ALOMA*8 and Chinese Markets
Toyota Industries covers the ALOMA markets of some 60
countries in Asia, Latin America, Oceania, the Middle East
and Africa as well as the Chinese market. We are serving
these markets with a lineup consisting of TOYOTA, BT,
RAYMOND and Tailift brands.
In 2019, the ALOMA market declined from the previous
fiscal year while the Chinese market continued to expand.
Amid such conditions, Toyota Industries worked to enhance
its product lineup, reinforce sales and after-sales service
activities and promote logistics improvement solutions. In
spite of these efforts, unit sales were down 18% from theprevious fiscal year to 48,000 units in fiscal 2020.
To date, Toyota Industries has launched sales activities
with a focus on logistics improvement solutions in 14
countries. We are strengthening our relationships of trustwith customers by offering solutions to reduce logistics

29

Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Business Activities

costs and improve safety at their logistics sites. Our dealers
are also promoting improvements at their own facilities
to bolster their abilities to make improvement proposals
to customers. We will promote these and other efforts ascustomers’ total logistics solutions partner.
In the field of aftersales services, we areproceeding with theintroduction of the
Global Mobile Service
Solution (GMSS) thatleverages Internet of
GMSS mobile service system
Things (IoT) technology.
GMSS centrally manages
information on lift trucks owned by customers and thehistory of repairs conducted by dealers in each country byusing cloud services. Through this system, we will reinforce
our capability to provide better after-sales services. We arealso utilizing telematics to collect operational informationof lift trucks. The aim is to minimize downtime by analyzing
this information to foresee and prevent equipment failures.
Additionally, we established T-CORE, a new system toshare customer information, lift truck specifications andproduction data with our dealers by using cloud services.
Dealers in each country will use this system when placing
orders to Toyota Industries. Going ahead, we will share with
our local dealers information of our lift trucks throughout
their lifecycle by linking GMSS, telematics and T-CORE,
thereby establishing a system to ensure a quick response tocustomers.
As the leading manufacturer of materials handlingequipment, Toyota Industries will offer comprehensive
logistics solutions and satisfy the diverse logistics needs ofcustomers.
*8: ALOMA is a Toyota Industries term for Asia, Latin America, Oceania, Middle East andAfrica.

Activities of TALG	Logistics System Engineering Departmentof Toyota Material Handling Japan
In Japan, the installation of logistics systems that bring aboutlabor and work savings in distribution centers has beenproceeding rapidly in line with the exacerbating issue of labor
shortages. Toyota Industries is enhancing its product offering
throughout the entire logistics operations by introducing
systems and equipment of Bastian and Vanderlande into
Japan.
Bastian’s ULTRA automatic truck loading and unloading
robot has started operating at a customer’s logistics siteand has already contributed to improved work efficiency.
We also accept orders for
Vanderlande’s high-speed
CROSSBELT SORTER andengage in sales negotiations
for the company’s ADAPTO,
a high-speed storage andretrieval system. With Toyota
ULTRA
Industries supporting the
introduction of the two30

Toyota Industries Report 2020

companies’ products into Japan, we are making a more
meticulous response to the needs of customers in the
country. (See Special Feature 1 on pages 18–21 for details of
collaboration among the three companies.)

Web

Automobile
In the fields ranging from vehicle to engines, car air-conditioning compressors and car electronics,
Toyota Industries continues to meet the expectations and trust of its customers.

Link to productdetails.

	BastianOn the back of strong needs for logistics automation not
only in the e-commerce sector but also in the manufacturing
and retail sectors in North America, Bastian has been
receiving orders from customers in a broad range of businesscategories and expanding sales.
Based on a wealth of know-how accumulated insmall- to medium-scale projects, Bastian has increased its
capabilities for large system development and integration,
thereby successfully receiving an order for the largest project
in its history in 2019. Working together with TMHJ, Bastian
has rolled out ULTRA, an automated system leveraging its
strengths in developing cutting-edge technologies, in theJapanese market.
In North America, Bastian has been accelerating its
offering of logistics solutions to lift truck users by reinforcing
collaboration with dealers of the TOYOTA and RAYMOND
brands.

	Vanderlande
In Europe and the United States, an expansion of the
e-commerce market and labor shortages have caused a
sharp increase in needs for automated systems. Under
such conditions, Vanderlande steadily increased orders
from and sales to warehouse logistics and parcel/postal
services, obtaining orders related to the establishment of
new distribution centers as well as long-term servicing
contracts from leading global operators of e-commerce, retailand delivery services. In the warehouse logistics business,in particular, Vanderlande has been reinforcing systemdevelopment targeting industry’s
top companies and focusedbusiness categories according
to its basic business strategy.
Recently, orders have been
growing from the apparelindustry for solutions
leveraging its pocket sorter
Pocket sorterto pick and sort goods into
hanging pockets.
In the airport business, Vanderlande obtained orders for
systems for new terminals from existing airport customers
as well as long-term servicing contracts based on its longstanding relationships of trust. The company is working tofurther augment such relationships.
Vanderlande is also promoting collaboration within the
Toyota Industries Group, working together with the Logistics
System Engineering Department of TMHJ and Bastian to
introduce its systems into the markets in Japan and North
America, respectively.

Strengths

Opportunities• An agile structure to undertake all aspects from planning and development toproduction within a plant (Vehicle)• Highest-level production efficiency and quality among all Toyota-affiliatedautomobile body manufacturers (Vehicle)• Know-how on the development and production of diesel engines and turbochargers(Engine)• Highly efficient production of high-quality gasoline engines, including those for use
in hybrid vehicles (HV) (Engine)• Ability to develop excellent products with greater fuel efficiency, quieter operation,compactness, light weight and ease to mount on vehicles (Car air-conditioning
compressor)• Global top-share*1 products for use in a full range of vehicles, from internalcombustion vehicles to HVs, plug-in hybrid vehicles (PHV), electric vehicles (EV)and fuel cell vehicles (FCV) (Car air-conditioning compressor)• Monozukuri (manufacturing) using equipment created in-house to produce
high-quality products and flexibly accommodate changes in production volume(Car air-conditioning compressor)• Higher technological capabilities accumulated through the development andproduction of products for Toyota Motor Corporation (TMC), external sales andinternal use (Car electronics)• Development, production and top-level quality of electronic parts and devices forelectrified vehicles (Car electronics)• Increasing needs for energy-saving products due to stricter environmental
regulations and growing environmental consciousness• Sales expansion in each sector in line with growth of the automobile market

FY2019Net Sales

Risks• Shrinking of the automobile market caused by economic slowdown• Customers becoming less willing to buy energy-saving products following lessstringent environmental regulations• A drop in product competitiveness due to the yen’s appreciation or a rise in raw
material costs• Suspension of production caused by supply chain disruptions*1: Survey by Toyota Industries Corporation

FY2020Operating
Profit613.8 billion¥610.7 billion¥

Vehicle Sales

Engine Sales(Thousand units)(Thousand units)350¥6.8 billion

30
25

600

200

500

20

150

400

15

300

0

10

200

50

5

100
(FY) 16

17

18

19

20

0

17.2 billion(Million units)

700

100

¥

35

800

250

FY2020Compressor Sales

900

300

FY2019(FY) 16

17

18

19

20

0

(FY) 16

17

18

19

20

31

Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Business Activities

VehicleMedium-Term Direction of BusinessWe will contribute to TMC as a development andproduction base of compact sports utility vehicles (SUV)
by leveraging our comprehensive strengths derived
from the highest level of safety, environment, quality,
cost and delivery (SEQCD) among all Toyota-affiliatedautomobile body manufacturers and through greatercollaboration within the Toyota Industries Group.

accomplishment for successfully improving the painting
process that accounts for about 60% of the plant’s total CO2
emissions. It also has the added effectiveness as it could
be applied to other plants, including the Takahama Plant
producing materials handling equipment. We will continue toundertake activities to eliminate the wasteful use of energy
through focused investigation and analysis.

	RAV4 Designed, Developed and Producedby Toyota Industries Selected as the Car of
the Year JapanThe new Toyota RAV4, TMC’s global strategic vehicle thatmade a comeback to the Japanese market, received the
Car of the Year Japan 2019-2020 award for its capabilities
as an SUV of the new era to satisfy every need of users at
a high level. The RAV4 became the first Toyota vehicle toreceive the award in a decade.
Toyota Industries was involved in exterior and interior
design and upper-body development of the vehicle andundertakes production of the RAV4. We will continue topursue vehicle
planning anddevelopment aswell as assure
quality in a way
to meet the
expectations ofcustomers.
Award-winning RAV4

	Highly Acclaimed by Customers Worldwide

Diesel Engines for Automobiles
Toyota Industries representative receiving the award fromMETI State Minister Hideki Makihara	Receiving an Excellent Karakuri Kaizen
Award
At the Karakuri KAIZEN*2 Exhibition 2019 hosted by theJapan Institute of Plant Maintenance, a project of Toyota
Industries was selected among 454 projects of 110
companies and received an Excellent Karakuri Kaizen
Award. The project, undertaken by the Painting Section of
the Manufacturing Department in the Vehicle Division, wasrecognized for its safe, secure and comfortable karakuri
mechanical device that resolves problems facing painting
operators and suppliers in relation to the 3Ms (muri, muraand muda: literally translated as overburden, unevenness
and waste).
*2: Achieving kaizen (improvement) at low cost by karakuri (Japan’s traditional, nonpowered mechanical systems that utilize gravity, the principle of leverage, etc.)	Winning a Minister of Economy, Trade andIndustry Award in the 2019 Energy
Conservation Grand Prize
The Nagakusa Plant, a vehicle assembly base in Aichi
Prefecture, has implemented a comprehensive energysaving initiative to reduce heat dissipation loss in the drying
process of electrodeposited vehicle painting and cut down
its annual CO2 emissions by 391 tons. In recognition of thisinitiative, Toyota Industries received a Minister of Economy,
Trade and Industry Award in the Industrial Field, which is
the highest award in the Energy Conservation Grand Prize
program (Energy Saving Projects Category) run by the
Energy Conservation Center, Japan, in 2019.
We believe that the initiative was an excellent

32

Toyota Industries Report 2020

Business Overview in Fiscal 2020

Thanks to the growth in sales of engines, including
new A25A and M20A gasoline engines, unit sales infiscal 2020 totaled 807,000 units, an increase of
214,000 units, or 36%, over the previous fiscal year.
Net sales increased by ¥14.0 billion, or 13% year on
year, to ¥122.4 billion.

Business Overview in Fiscal 2020

The automobile market remained on par with theprevious fiscal year in Japan, but sales declined inother parts of the world.
In fiscal 2020, unit sales increased by 39,000
units, or 14%, over the previous fiscal year to
324,000 units on the back of growing sales of the
new RAV4, production of which was launched in
November 2018. Net sales also increased by¥7.5 billion, or 9% year on year, to ¥89.9 billion.

way to the era of zero emissions by pursuing thefurther evolution of internal-combustion engines anddeveloping new, globally top-level technologies andproducts that also respond to car electrification.

Two Toyota Industries’ representatives
receiving the award (on the right)

Toyota Industries’ diesel engines are mounted in a variety of
Toyota vehicles, including the Toyota Land Cruiser series,
the world’s renowned full-fledged four-wheel drive (4WD)model, and TMC’s Innovative International Multipurpose
Vehicle (IMV) series targeting emerging countries. Theirhigh performance and reliability have gained strong market
recognition. Currently, our mainstay products are in-line
4-cylinder GD diesel engines and V-type 8-cylinder VD
diesel engines. GD diesel engines equipped with aturbocharger specifically and optimally designed andmanufactured in-house are manufactured in Japan and by
Toyota Industries Engine India Pvt. Ltd. (TIEI), a consolidated
subsidiary in India.
TO PIC

Launched Production of a New
Turbocharger Realizing Higher Output of
GD Diesel Engine
In March 2020, Toyota Industries launched
production of a new turbocharger that realizes higher
output of the Toyota GD diesel engine to be mounted
on such vehicles as TMC’s IMV series sold across theworld. The new turbocharger provides considerably
better performance through the adoption of newtechnologies, such as a ball bearing-type system anda newly designed impeller and turbine wheel, and has
successfully achieved a dramatic increase of around
15% in the output of the engine without changing its
basic components. We will continue to improve thebasic performance of our turbochargers and offer
diesel engines with even greater competitiveness.

EngineOur Toyota New Global Architecture (TNGA)*3 gasoline
engines, namely the 2.5-liter A25A and 2.0-liter M20A, aremainly fitted in the RAV4 manufactured at the Nagakusa
Plant in Aichi Prefecture. Developed based on the TNGA
concept, these engines
offer both excellent
driving performanceand environmental
performance. Responding
to the advancement of car
electrification, we have also
added an HV version of the
A25A engine to our lineup.
We will improve productquality and productivity
further and contribute to
the creation of “ever-better
2.5-liter A25A engine for HVscars” by TMC both throughdiesel engines and gasoline
engines.
*3: Development policy and method for vehicle creation based on a modular platform

Engines for Use in Industrial Fields
Toyota Industries’ engines are highly renowned for theirreliability and excellent environmental performance inindustrial fields as well. These engines are used for a wide
variety of applications, including our lift trucks, and adopted
by many customers such as GHP*4 manufacturers in Japanand CHP*5 manufacturers worldwide. These engines offer
downsized displacement compared with conventional models
with equivalent output, resulting in higher
fuel efficiency, cleaner emissions and areduction in size.
Web*4: Short for gas heat pump; air conditioner driven by a gas
engine*5: Short for combined heat and power; co-generation system

Link to product details.

Toyota 1ZS diesel engine and turbocharger	Seeking Engines with Greater ProductAppealMedium-Term Direction of BusinessIn line with more stringent environmental regulations
adopted globally, there is a growing demand forengines with even greater fuel efficiencies and cleaner
emissions. Amid this environment, we aim to pave theGasoline Engines for Automobiles

High-output GD diesel engine and new turbocharger

Following the Paris Agreement adopted in December 2015
at the 21st session of the Conference of the Parties to theUnited Nations Framework Convention on Climate Change(COP21), and with some countries announcing their shift
from internal-combustion vehicles to electrified vehicles, there
has been a growing need for engines with even greater fuelefficiency and cleaner emissions for HVs, PHVs and other33Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Business Activities

electrified vehicles as well.
Diesel engines, on the other hand, enjoy an enduring
popularity particularly as a power unit suited for SUVs andsuch commercial vehicles as pickup trucks, as they offer
excellent basic performance of high fuel efficiency and hightorque at low speed.
Aiming for further evolution of internal-combustion
engines, we will continue to seek the world’s highest-levelcombustion efficiency and develop more fuel-efficient andcleaner engines.

Car Air-Conditioning Compressor
Medium-Term Direction of BusinessIn the Car Air-Conditioning Compressor Business, wewill leverage our core compression technology andbecome an innovative component supplier in a futuresociety where car electrification and the use of
autonomous technology are expected to advance
rapidly.
In the field of car air-conditioning compressors, wewill further enhance our capability to develop productsthat offer excellent fuel efficiency, quieter operation,compactness, light weight and ease to mount on
vehicles. In addition, with the aim of satisfying needs ofa broader variety of customers, we will utilize ouraccumulated technologies to expand our development
domain into core components for drive systems.

Business Overview in Fiscal 2020

In fiscal 2020, unit sales of car air-conditioning
compressors decreased 1.95 million units, or 6%,
from the previous fiscal year to 31.03 million units.
Despite an increase in sales in Japan, unit sales were
negatively affected by lower sales in North America
and Europe due primarily to the impact of the
COVID-19 pandemic. Net sales were down ¥18.1
billion, or 5%, from the previous fiscal year to¥328.1 billion.

More stringent fuel efficiency standards have been
enforced across the world, pushing the need for higher
fuel efficiency both for internal-combustion vehicles
and electrified vehicles. Our variable-displacement typecompressors for internal-combustion vehicles, which arerenowned for high fuel efficiency and reduced weight,
have been adopted by the world’s leading automakers,
including Toyota Motor Corporation, Daimler AG, General
Motors Company (GM), Volkswagen AG and Hyundai Motor
Company.
In the United States, our SES series became the firstcompressor*6 to be approved under the country’s off-cycle
credits program. The program gives off-cycle credits totechnologies that can effectively improve fuel efficiency
under its emissions regulations. We have since beenworking to increase the number of models equipped with
the SES series compressors.
For electric compressors, we are differentiating theirperformance by leveraging our original evaluation andanalysis techniques and know-how. Specifically, we
are working to add even greater competitiveness toour products. Efforts include improving efficiency that
affects the driving range of electrified vehicles; adopting
countermeasures against electric waves specific toelectrified vehicles; and achieving quieter operation. We arealso augmenting our support capabilities for automakers
through our solution offering to solve diverse noise andvibration issues of the entire vehicle. Besides Toyota, Ford
Motor Company, Renault
S.A.S., Honda Motor Co.,
Ltd., Nissan Motor Co.,
Ltd. and other automakers,
which are already using
our electric compressors intheir respective HVs, PHVs
and EVs, we will continue
to ramp up our efforts
to expand sales to otherautomakers around theworld.
*6: S urvey by Toyota Industries
Corporation

ESB20 electric compressor

	Establishing Stronger Global Productionand Supply Structures
Currently, the car air-conditioning compressor market
remains unstable due to weak automobile sales, eventhough growth is expected over the medium term. The
move toward more stringent fuel efficiency regulations
and car electrification has also prompted the possibilityof fluctuating demand for compressors both for internalcombustion vehicles and electrified vehicles. In response,
we are building a production structure less vulnerable tochanges in production volume through such measures
as automating our plants to save labor and implementing
flexible shifts in production operations. Meanwhile, we
expect the rapid spread of electrified vehicles in China driven
by the country’s new energy vehicles (NEV) regulation*7.
Accordingly, we will promote the local production of electriccompressors to capture booming demand.

Even though growth in the car air-conditioning compressor
market is currently slowing down due to weak sales ofautomobiles, we expect continued growth over the medium
term on the back of the expanding automobile market
and an increase in the number of vehicles fitted with an air
conditioner. The market of electrified vehicles, in particular,
is expected to accelerate growth gradually in and after2020 as automakers roll out new models. In order toreinforce our development and production structures, we willchannel resources into both types of compressors, namely
compressors for internal-combustion vehicles, which are still
mainstay products for the time being, and compressors forelectrified vehicles, for which we anticipate stronger demand
over the medium to long term.

34

Toyota Industries Report 2020

TO PIC
Since launching the world’s first mass productionof electric compressors in 2003, Toyota Industries
has maintained the world’s top share*8 for electriccompressors and manufactured approximately 20
million units to date. Previously, we had manufactured
these compressors only in Japan, but in responseto the growing demand in China, initiated local
production at TD Automotive Compressor KunshanCo., Ltd. (TACK) in March 2020. There is also aplan to launch production at Yantai Shougang TD
Automotive Compressor Co., Ltd. (YST) in the future.
By installing production lines that have been refinedfor higher quality and productivity at a mother plantin Japan to bases in China, we will ensure stableproduction at a high quality level.

*7: Regulation in China mandating automakers to produce a certain percentage of EVs
and other new energy vehicles

	Increasing Competitiveness by Creating
Production Facilities In-House
Achieving high levels of fuel efficiency and reliability requires
high-precision processing technologies for compressors forboth internal-combustion vehicles and electrified vehicles.
Toyota Industries realizes high-speed and high-precision
machining by leveraging its know-how accumulated throughresponding to the stringent demands of automakers
worldwide and by developing devices from processing
machines to associated cutting tools in-house. With the*8: Survey by Toyota Industries Corporation

Worldwide Bases of Car Air-Conditioning Compressors (As of March 31, 2020)

TDDK
DNDE

Germany

Germany

YST

DICH

MACI

China

China

U.S.A.

DIAM

U.S.A.

	Developing Next-Generation Products	Development Efforts Centered around
Energy Savings and Car Electrification

aim of increasing our production efficiency further, we havealso set up a system that allows design and productionengineering departments to work as one team to design
mixed production lines to manufacture a wide variety of
products while increasing production capacities in a phasedmanner.

Following car electrification and widespread use of
autonomous driving technology, there has been a growing
need to cool electronic devices, batteries and other key
heat-emitting components. In response, we are developing
compressor models with increased cooling capability in order
to use their cooling function not only for vehicle interior air
conditioning but also for key components. Additionally, we
are making our electric compressors compatible with varying
voltage and capacity needs and increasing their reliability
through multifaceted evaluations using our evaluation
facilities created in-house and a test driving course.
Besides this cooling functionality, we intend to utilize
our core technologies to expand our business domain
into components for drive systems. Currently, we engage
in production of an oxygen-supplying air compressor andhydrogen circulation pumps for FCVs and are promoting
development of next-generation products.

TICO

DNTS

Japan

Italy
SUBROS

TACK

India

China

TACG

U.S.A.
TICA

U.S.A.

TACI

Indonesia

DNBR

BrazilConsolidated production bases

Licensed manufacturers

Technical service stations

Toyota Industries’ car air-conditioning compressors are widely adopted by automakers around the world, garnering the No. 1*9 position in global sales.
*9: Survey by Toyota Industries Corporation

35

Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Business Activities

Car Electronics
Medium-Term Direction of BusinessCar electrification is steadily progressing in keeping withthe enforcement of more stringent environmental
regulations and growing energy-saving consciousness
among customers. The Electronics Division willcontribute to car electrification in a broad range offields, from offering on-board power source devices toimproving social infrastructure through the provision of
charging stands and systems to feed electricity
externally.

Business Overview in Fiscal 2020

Net sales of car electronics products expanded,primarily supported by sales of DC-DC converters
and on-board chargers mainly to TMC.

	Contributing to Car Electrification
Toyota Industries develops not only DC-DC converters,
on-board chargers and AC inverters in the field of on-board
power source devices but also rear inverters in the field ofcore components for drive systems and charging stands. In
addition to TMC, we are promoting new business to otherautomakers across the world.

DC-DC converter

On-board charger

A DC-DC converter converts the high voltage of HV,
PHV and EV batteries into a lower voltage level to supply
power to standard electricaldevices such as lights andwipers. Our DC-DC converters
are fitted in the Prius, Aqua andother major electrified vehicles.
By utilizing such technologies
as the world’s first thick copper
substrate*10, we have reduced
the volume and weight of the
product. In December 2019, we
also started production of a DCDC converter for the new Yaris.
Sub-stand Main control
stand
An on-board charger
converts AC voltage from theCharging stand for PHVs and EVs
power grid into DC voltage

36

Toyota Industries Report 2020of high-voltage batteries in vehicles and is necessary forcharging EVs and PHVs, for which the market is expected
to expand in the future. We offer chargers compatible with awide range of voltages to enable their use in various parts of
the world.
In addition, we have been contributing to theadvancement in car electrification by developing a rear
inverter for electric 4WD vehicles and public charging stands
for PHVs and EVs.

Web

Textile Machinery

Carrying on the philosophy of founder Sakichi Toyoda, which reflects his strong commitment tomanufacturing, Toyota Industries responds to a broad range of needs with its extensive product lineup,
Link to productdetails.
from air-jet looms, for which we enjoy the world-leading market share* in unit sales, to ring spinning
frames and roving frames.
* Survey by Toyota Industries Corporation
Strengths

Air-Jet Loom Sales• Broad product lineup both in the spinning andweaving machinery fields• Global, well-developed service network(Thousand units)	Use of an Electrified Vehicle as a Power
SourceIn recent years, there has been a growing public attention to
the use of high-capacity batteries of electrified vehicles as a
power source.
Toyota Industries recognized early on the use ofelectricity stored in vehicle batteries as a power sourceand developed an on-board AC inverter in 1995. It was
the world’s first model*10 to be mounted on a vehicle while
in production. Since then, production volume has been
increasing and reached a cumulative total of 30 million unitsin June 2019.
The 1.5-kW type, inparticular, can operateappliances that require more
power, such as rice cookers
and hot plates, and has
drawn much attention as an
emergency power source
in a disaster in addition to
camping, outdoor eventsand other applications.
1.5 kW AC inverter
Immediately following
Typhoon Faxai in 2019,many vehicles fitted with this inverter were put to use acrossJapan to supply electricity during prolonged power outages.
We will continue to promote the development of
inverters as a key component that adds new value toelectrified vehicles, along with other products such as
vehicle-to-load (V2L) systems*11 capable of supplying alarge amount of electricity.
*10: Survey by Toyota Industries Corporation*11: S ystems and equipment designed to use the power accumulation and generation
capabilities of HVs, PHVs, EVs and FCVs to feed power to electric appliances

8

Opportunities

6• A rise in textile demand in line with an increase in • Further increasing applications in industrial textile
the world population
products• Increasing need for high-quality and highly functional yarn and textile products, following the economic
growth of emerging countries420• World-leading market share* in unit sales of air-jet
looms• Ability to develop products that excel in reliability,
energy-saving performance and versatility

Risks
(FY)

16

17

18

19

20

• Changes in each government’s policies concerning • Weaker sales due to intensifying competition
promotion of the country’s textile industry• A decline in capital investment due to economic slowdown and raw cotton and/or yarn price fluctuations

FY2019Net Sales¥76.3 billion

FY202061.7 billion¥

Medium-Term Direction of BusinessWith growing environmental consciousness worldwide,
needs are expected to increase further for textile
machinery offering superior environmental performance.
Toyota Industries’ products are highly acclaimed bycustomers for their excellent reliability and productivity
as well as energy-saving performance. We will continue
to develop energy-saving and other innovativetechnologies and seek to achieve further growth andevolution as a leading manufacturer of textile machinery.

Business Overview in Fiscal 2020

The textile machinery market was weak in Asia,
including China, our primary market. Unit sales of
air-jet looms decreased 2,200 units, or 24% year on
year, to 6,800 units. Combined with a decrease insales of quality measurement instruments for fiber,yarn and fabric, net sales were down ¥14.6 billion, or
19%, from the previous fiscal year to ¥61.7 billion.

Operating
Profit

FY2019¥7.3 billion

FY2020

2.9 billion¥	Taking Part in the Largest International
Textile Machinery Trade Show in the WorldIn June 2019, Toyota Industries participated in ITMA 2019
international textile machinery trade show held in Barcelona,
Spain.
We exhibited the JAT810 air-jet loom, for which we
enjoy the world’s top share in unit sales, and demonstrated
high-speed weaving of complex-patterned fabrics using ouroriginal electronic shedding device. We also showcased ournext-generation air-jet loom that captures the future needsof textile plants for automation, use of IoT and environmental
response. These products received favorable feedback
from many visitors. At the booth of Uster Technologies AG,
a Switzerland-based consolidated subsidiary manufacturing
quality measurement instruments for fiber, yarn and fabric,
we exhibited the latest measurement instruments, whichdrew much attention from visitors. Through various textile
machinery exhibitions, we will continue to appeal tocustomers our technological capability to meet their needs
and reinforce our brand strength.

Growing Needs for Air-Jet Looms

V2L
Evacuation shelters,
school gymnasiums, etc.

TMC’s SORA FC bus and V2L

10Toyota Industries’ air-jet looms are adopted by customers
in China, India and many other countries. Produced fabrics
are used broadly for towels, shirts and other clothing
purposes as well as in industrial products such as materials
for electronic substrates and vehicle airbags. Recently, an
increase in mobile electronic devices has driven the need for
fabrics of woven glass fiber for use in electronic substrates,
and it is anticipated that applications for air-jet looms will
expand further.

Staff who participated in the trade show

Uster’s booth37Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Corporate Governance

Promotion of ESG Initiatives
Further Promoting Initiatives to Sustain
Growth in the Areas of Governance,
Society and the Environment

Corporate GovernanceCorporate Governance Structure — P38–40 Internal Control System — P40

Compliance — P40–41

Information Security — P41–42 Risk Management — P42–43

Toyota Industries strives to enhance its corporate value in a stable manner over the long term and maintains society’s
trust by earnestly fulfilling its social responsibilities in accordance with its Basic Philosophy. To that end, Toyota
Industries endeavors to further enhance its corporate governance in its efforts to maintain and improve management
efficiency and the fairness and transparency of its corporate activities.

Corporate Governance Structure

disclosure of information.
More specifically, the following basic policies drive ourinitiatives.
(1) We seek to ensure shareholders’ rights and equality.
(2)	We seek to promote appropriate collaboration withstakeholders other than shareholders (including
customers, business partners, creditors, local
communities and employees).
(3)	We seek to conduct appropriate information disclosureand ensure transparency.
(4)	We seek to perform the roles and duties of the Board of
Directors appropriately in order to make decisions in atransparent, fair, quick and resolute manner.
(5)	We seek to promote a constructive dialogue withshareholders.

Basic Perspective on Corporate GovernanceToyota Industries regards the most important managerial
task is to earn trust broadly from society and enhance ourcorporate value on a stable, long-term basis. We aim to
do this task based on our Basic Philosophy and earnestly
fulfilling our social responsibilities. Our basic focus is on
contributing to the creation of an enriched society throughbusiness activities, and we believe it is essential to cultivate
good relationships with stakeholders, including shareholders,customers, business partners, creditors, local communities
and employees.
Accordingly, we strive to enhance our corporate
governance in order to maintain and improve management
efficiency, fairness and transparency. For example, we haveestablished a structure to quickly and flexibly respond tochanges in the business environment and have been working
to augment management oversight and ensure the timely

Implementation Structure
Toyota Industries convenes monthly meetings of the Board

Selection and Dismissal of Senior Management
and Appointment of Director and Audit &Supervisory Board Member Candidates

Shareholders’ Meetings
Selection/Dismissal

Selection/Dismissal

Reporting

Cooperation

Independent Auditors

Accounting
Audit

Executive Compensation
Committee

Selection/Dismissal

Reporting

Audit & Supervisory Board
Board of Directors

ReportingExchange of Opinions

Executive Appointment
Committee

Appointment/Monitoring

Management Committee(Deliberates on important matters from management’s perspective)

Management Council

Monitoring
Selection/Dismissal
Cooperation

President

Business Operation Committee(Follows up on the execution of business operations)

Discussion/
ReportingDirection/
Supervision

Reporting
Audit Dept.

(Reports on and confirms execution of business operations)Internal Audit

Functional Meetings*1, Committees*2
Senior Executive Officers

Business Divisions/In-House Company/Departments

Audit & Supervisory
Board Office
Cooperation

Monitoring*1: Functional
Meetings*2: Committees
CSR

Human Resources
Quality

Environmental

Production

Export Transaction
Controls

Procurement

Safety and HealthTechnologies

Profit Improvement

These entities deliberate andfollow up on issues in respective areas.

Subsidiaries/Affiliates(As of June 9, 2020)
Toyota Industries’ Corporate Governance Reports are available at its Website (in Japanese).

38

Toyota Industries Report 2020of Directors to resolve important management matters andmonitor the execution of duties by directors. We appoint
outside directors who have a wealth of experience andknowledge concerning business management. They attend
meetings of the Board of Directors and give opinions
and ask questions as deemed necessary based on theirindividual, wide-ranging experience and insights related
to the management of globally operating companies andmonozukuri (manufacturing). Through this supervisory
function of outside directors, we ensure the legality andvalidity of the Board’s decisions as well as directors’
execution of duties from an objective perspective. The
Management Committee, which is composed of directors at
the executive vice president level and above as well as senior
executive officers and other executives, deliberates on avariety of issues concerning important management matterssuch as our corporate vision, management policies, mediumterm business strategies and major investments.
Toyota Industries has a divisional organization system,with significant authority delegated to each business division.
For especially crucial matters, however, we have establishedthe Business Operation Committee to enable the president
to meet with the heads of each business division regularly
to monitor and follow the status of their business execution.
At meetings of the Management Council, directors, audit &supervisory board members and senior executive officers
convene to report and confirm the monthly status of business
operations and share overall deliberations at Board of Directors
meetings and other management-related information.
In addition, issues pertaining to human resources, quality,
production, procurement and technologies are discussed
at the corresponding functional meetings. We have also put
in place committees to deliberate on more specific matters,such as corporate social responsibility (CSR), the environment
and export transaction controls. These functional meetingsand committees discuss important matters and action themes
in respective areas. Moreover, we strive to maintain andimprove internal controls by establishing the Audit Department
and conducting internal audits of Toyota Industries’ businessdivisions and departments as well as our subsidiaries.

Link tothe report.

As our policies concerning selection (and dismissal) of senior
management and appointment of director candidates, we
carry out comprehensive evaluations from the viewpointof placing the right persons in the right positions. We seeka balance between making sound and quick decisions,managing risk appropriately and monitoring execution ofbusiness operations and covering a specific function orbusiness division of Toyota Industries.
In appointing audit & supervisory board member
candidates, we also perform comprehensive evaluations fromthe viewpoint of placing the right persons in the right positions,while ensuring a balance among the financial, accounting
and legal insights, knowledge on our business fields and thediversity of perspectives on corporate management.
Based on these policies, we review proposals, exchange
views and confirm details at the Executive Appointment
Committee, which includes independent outside directors, andsubmit these proposals to the Board of Directors for resolution.

Appointment of Independent Members ofManagement
As a publicly listed company, Toyota Industries strives toensure the fairness and transparency of management.
Following the Securities Listing Regulations stipulated by
the Tokyo Stock Exchange and Nagoya Stock Exchange,
respectively, to further enhance our corporate governanceToyota Industries has appointed as independent membersof management two outside directors and two outside audit& supervisory board members who are deemed to have noconflicts of interest with our shareholders.

Determination of Compensation for Senior
Management and Directors
Compensation for senior management and directors
consists of monthly salaries and bonuses. Our policy is tolink their compensation with the business performance ofToyota Industries, reflecting their duties and performancein compensation. Bonuses, in particular, are determinedbased on consolidated operating profit of each fiscal year
while comprehensively taking into consideration dividends,
employees’ bonus level, trends among other companies,
medium- to long-term business performance and pastrecords of bonus payments.
As procedures to determine compensation, we review
proposals based on this policy, exchange views and confirm
details at the Executive Compensation Committee, which
includes independent outside directors, and submit these
proposals to the Board of Directors for resolution.

Effectiveness of the Board of Directors and Its
Evaluation
Through interviews with outside directors and audit &supervisory board members, Toyota Industries asks themto evaluate the effectiveness of the Board of Directors andcollects their feedback. The results of their evaluation aresummarized below.
(1)	Opportunities are provided to share information andhold discussions about management issues and othermatters.
(2)	Appropriate decision-making and management
oversight are ensured by holding several discussions
on important matters prior to the resolution and byreporting and following up on the progress after the
resolution of these important matters.
(3)	The atmosphere is open, encouraging directors to freely
make comments and engage in lively discussion.
(4)	Meeting materials are simple and clear, andexplanations are right to the point.
As shown above, Toyota Industries’ Board of Directors
has been evaluated as effective. In response to certain
feedback calling for further improvement, we will undertake
improvement efforts on a continuous basis.

Audit & Supervisory Board System
Toyota Industries has four audit & supervisory board
members, two of whom are full-time members and two ofwhom are outside members.
The four members attend meetings of the Board of
Directors and provide their opinions as appropriate. The
full-time members also attend other important meetings toreceive reports on the execution of duties by directors and39Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Corporate Governanceother responsible persons. They also carry out on-site audits
at the Head Office, major business sites and subsidiaries asnecessary and collaborate with independent auditors and the
Audit Department for overall audits.
Meetings of the Audit & Supervisory Board are held every
month to share information on audits conducted by thefull-time members with the outside members and to receive
reports from directors, responsible persons and independent
auditors. At these meetings, the members also discuss andmake decisions on important matters, such as audit policies
and plans, the audit method used by independent auditors
and the appropriateness of their audit results.
Initiatives for Enhancing Corporate Governance1971 Introduced a divisional organization system
2006 Reduced the number of directors (from 30 to 17)
2006 Introduced a managing officer system
2010 Appointed independent members of management
2016 Reduced the number of directors (from 17 to 11)2017	Conducted an evaluation of the effectiveness of the Board of
Directors
2019	Revised executive management structure and reduced thenumber and rank of executives

Internal Control System
In accordance with the Companies Act, 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
the effectiveness and efficiency of business operations by
incorporating these policies into each business segment’s
annual policies and day-to-day routine management. The
CSR Committee, at its meeting held in March, assesses the
progress made in implementing the Basic Policies in theyear under review and determines actions for the coming
year, including reviewing the implementation structure andenhancing day-to-day operational management.
Furthermore, based on the Financial Instruments andExchange Law (so-called Japanese Sarbanes-Oxley Act(J-SOX)), we have established and appropriately operated aninternal control system to maintain the reliability of financial
reporting. The system’s status and progress are reviewed by
the Audit Department and audited by independent auditors.
We determine which Toyota Industries Group companies fallwithin the scope of J-SOX based on the degree of impact on
the reliability of financial reporting. We determined that ourinternal controls over financial reporting as of the end of fiscal
2020 were effective, and accordingly, submitted an Internal
Control Report in June 2020. The report was reviewed byInternal Control Assessment System (Based on J-SOX)
Internal control activities undertaken by eachdepartment and consolidated subsidiary(Establishment and operation of internal controls)

Toyota Industries Report 2020

We believe that compliance means both adhering to laws andregulations as well as ethics and social norms. As such, it isvital to promote compliance throughout the Toyota Industries
Group under the leadership of top management.
To promote compliance, we have established theCompliance Subcommittee (led by the head of the
Corporate Headquarters) as a subordinate organization to
the CSR Committee (led by the president). Every year, thesubcommittee formulates an action policy that covers theentire Toyota Industries Group and conducts a follow-up
check on the progress of corresponding activities twice
during that year.

Formulating and Thoroughly Instilling the Code of
Conduct
Toyota Industries has formulated and distributed to
executives and all employees the Toyota Industries
Corporation Employee Code of Conduct, which serves asconduct guidelines that should be observed by employees.
Accordingly, we have been working to instill the Code throughgroup training and other means. Consolidated subsidiaries
in and outside Japan have formulated their own Code of
Conduct appropriate to their respective business lines andcorporate cultures and have been providing Company-wide
education once a year.
Regarding bribery, which could have a significant impact
on management, Toyota Industries has formulated the Global
Guidelines for Bribery Prevention. Particularly, in countries
high on the Corruption Perceptions Index, each company has
developed internal rules in accordance with the applicablelaws in respective countries and been conducting activities
to familiarize employees with them. As for antitrust laws, weoperate a system to conduct a check and review before andafter employees of Toyota Industries contact competitors
and have been cultivating awareness among employees
for not acting in a manner that may possibly constitute a
violation of antitrust laws. Moreover, we have designated aparticular month as “Antitrust Law Compliance Month” since
fiscal 2016 to carry out enlightenment activities at relevant
departments.
In addition, we have created and disseminated e-learningmaterials on 49 topics in order to cultivate a deeper
understanding of compliance among employees of Toyota
Industries Corporation and our consolidated subsidiaries inJapan and to create an environment in which employees
foster compliance consciousness on their own.

a compliance officer (outside Japan) to lead and promoteautonomous activities in respective communities. In North
America, Europe, China and Asia/Oceania, complianceofficers regularly hold conferences and facilitate collaborative
activities within each region.
In fiscal 2020, we held the second Compliance
Officer Meeting in India with compliance officers from four
companies to share information on the Code of Conduct ofeach company, bestpractices of complianceactivities and updates
to relevant laws.
Through these efforts,
they work together toincrease the level ofcompliance throughout
Second Compliance Officer Meeting in India
their business in India.

Activities in the Toyota Industries Group

Basic Perspective

Each consolidated subsidiary of the Toyota Industries Group
has set up a compliance committee (in Japan) and appointed

We recognize that the personal information of customers,
employees and business partners as well as information
concerning our technologies and sales activities are assetsthat need to be protected. Accordingly, with the aim ofsafeguarding our information assets and strengthening their
management, we have formulated the Basic Policies for
Information Security.

Main Compliance Officers

EuropeToyota Material Handling Europe AB

Information Security

Andreas Lundh

Basic Policies for Information Security

United States(1) Legal compliance	We comply with laws and regulations related to information
security while fostering awareness of them among employees.
(2) Maintaining a stable business foundation
	We safeguard and manage information assets appropriately,
carry out information security-related education andenlightenment activities on an ongoing basis and seek tomaintain a stable business foundation.
(3) Providing safe products and services
	We provide safe products and services to customers andsociety by implementing information security measures in ourbusiness activities, including development, design andmanufacture of products and services.
(4) Information security management
	We build a governance structure to enforce and manage
information security and continue to promote and refine thestructure.

Toyota Industries North America, Inc.
Sheena Seger
China
Toyota Industries Management (China) Co., Ltd.
Zhu Lingling
India
Toyota Material Handling India Pvt. Ltd.
Pragya Sharma
Vanderlande Group
Vanderlande Industries Holding B.V.
Carl Messemaeckers

Organization for Promoting Compliance and Information Security under the CSR Committee
CSR Committee
Activity reports

Approval and instruction

Example Topics of e-Learning Materials

Internal Control Audit Report

Audit on internal controls by independent auditors

40

Compliance

Basic Perspective and Implementation Structure

system to report and seek consultation on compliancerelated issues. In Japan, North America, Europe and China, inparticular, we operate a compliance hotline (external helpline)that allows employees and other relevant parties to seek
advice from external experts on compliance-related matterswithout being exposed to negative consequences. In fiscal
2020, we received 86 reports and inquiries from within Toyota
Industries and from its consolidated subsidiaries in Japan onsuch matters as labor management, working environment andethics. After verifying each report and inquiry, we have taken
appropriate action regarding each case. Our responses havebeen reviewed and judged appropriate by external lawyers.
In fiscal 2017, we also set up a hotline for our major
business partners to report and inquire about possible
compliance violations by Toyota Industries employees.
Through these initiatives, we ensure the early discovery
and prevention of issues and intend to become a “company
on which society places greater trust.”

Annual financial report

Internal Control Report

Improvement of Detection of Review of internal
controls byinternal controls deficiencies
Audit Department

independent auditors and judged fair in their Internal Control
Audit Report.

Compliance; Antitrust laws; Prevention of bribery; Human rights;
Various types of harassment; Safety behavior; Occupational accidents;
Mental health; Environmental protection; Management of confidential
information; Traffic safety; Product liability; Accounting process

Compliance Subcommittee (in charge of compliance)

Information Security Subcommittee (in charge of information security)

Europe, North America and China

Early Detection and Prevention of Issues via
Compliance Hotline

Toyota Industries Corporation

Consolidated subsidiaries
in Japan

Consolidated subsidiaries
outside Japan

Regional headquarters

Consolidated subsidiaries outside JapanThe Toyota Industries Group has in place a whistle-blower

41

Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Corporate Governance

Implementation Structure
Toyota Industries has set up the Information Security
Subcommittee (led by an executive in charge of the General
Administration Department) as a subordinate organization to
the CSR Committee to reduce information security risks.
To thoroughly implement the initiatives adopted by thesubcommittee, we appoint information security managers*1
and information security administrators*2 at each departmentof Toyota Industries.
For consolidated subsidiaries around the world, we
regularly hold meetings of information technology (IT)managers in each region to share information on security
incidents and countermeasures both in and outside the Toyota
Industries Group and to disseminate relevant policies. Throughthese and other measures, we are increasing the levels of
security and security awareness throughout the Group.
*1: Head of each department*2: A person within the department, appointed by the head

Information Security ManagementInformation Security Monitoring and Incident
Response
To ensure the early detection of and prompt action against
cyberattacks, we have in place systems to monitor the
security of PCs and all other terminals used within the
Toyota Industries Group and to respond to incidents 24hours a day, 7 days a week. Upon the occurrence of anincident, we immediately report it to the president andsenior management and share relevant information within
Toyota Industries. We also share threat information with ourconsolidated subsidiaries in and outside Japan to swiftly alert
each company.
Providing Education on Information Security
We believe that awareness among all executives, employees
and contract employees is crucial in preventing information
security incidents. Based on this belief, we provide training on
targeted attacks via e-mail and after-action education morethan four times a year per person. We also send periodic
reminders internally using incidents that have occurredelsewhere as examples.
Preventing Leakage of Confidential Information
We strive to raise the level of information security by holding
workplace meetings and conducting self-checks regarding
our information security practices. In terms of technologicalmeasures, we implement a multi-layer defense that includes
encrypting PCs, restricting and monitoring the copying of files
on recording media and preventing malware penetration anddata leakage caused by cyberattacks.
Conducting Information Security Audits
In accordance with the All Toyota Security Guidelines(ATSG)*3, we biannually inspect the implementation
status of information security at Toyota Industries and ourconsolidated subsidiaries around the world in order tomaintain and improve the level of information security on acontinuous basis.

42

Toyota Industries Report 2020

Primary Activity Examples

Activities in fiscal 2020
• Enhancing security services for consolidated subsidiaries in Japan• Facilitating tools (measures) to support actions against leakage ofconfidential information• Extending the target group of participants for information leakage
response training• Increasing the frequency of e-mail security training (once a year/
person to four times a year/person)• Conducting information security audits at consolidated subsidiaries
outside Japan• Performing a more stringent check on information devices brought
into the plant premises from outside• Providing information security education to on-site plant workers*3: Security guidelines of the Toyota Group, which conform to the Cyber Security Frameworkof the National Institute of Standards and Technology (NIST CSF) and ISO 27000 seriesof standards for information security management systems

Risk Management

Basic Perspective

Based on the Basic Policies for the Establishment of anInternal Control System in compliance with the Companies
Act, Toyota Industries is working to strengthen regulations
and a structure to promote risk management. We regard
the following aspects as the basics of risk management andimplement initiatives accordingly.
(1)	Incorporating measures to prevent and reduce potential
risks into daily routines and following up on the progressof implementation(2)	Ensuring quick and precise actions to minimize theimpact on business and society when a risk becomesapparent

Implementation Structure
Business divisions and other departments at the Head
Office develop and promote annual action policies that
integrate measures to prevent and control risks related
to quality, safety, the environment, personnel, exporttransactions, disasters and information security. Progress is
assessed and followed up by each functional management
entity such as the CSR Committee and the Environmental
Committee. At the same time, functional departments atthe Head Office such as those responsible for quality, safety
and the environment formulate rules and regulations andcreate manuals from a Group-wide perspective, including
consolidated subsidiaries. By confirming and following up
on the progress through operational audits and workplaceinspections, they provide support for raising the level of risk
management at each business division and consolidated
subsidiary.
We have also formulated the Risk Response Manual,
which defines our initial response to an emergency. Thismanual lays out basic rules to be followed when a risk
becomes evident. The aim is to ensure quick reporting to top
management, perform an accurate assessment of the impact
on society and business activities and minimize damage
through appropriate actions. As a countermeasure to theongoing COVID-19 pandemic, we are making an appropriate
response based on this manual. The content of the manualis reviewed and revised as deemed necessary in response tochanges in businesses and the surrounding environment.

Response to Possible Major Earthquake
We consider the impact of a major earthquake as one of
the most significant risks and have accordingly formulated
a business continuity plan. Based on the three basic
policies of placing maximum priority on human life, placing
top priority on the recovery of local communities andensuring the quickest possible recovery, we are making
Company-wide efforts in three relevant areas, specifically,“precautionary, pre-disaster mitigation,” “initial response to befollowed immediately after the disaster” and “restoration of
production.”

Disaster Prevention Structure
We strive to reinforce our disaster prevention structure toenable a smooth transition from the initial response stage tothe production restoration stage.
The Disaster Prevention Response Headquarters, led by
an executive vice president and consisting of representatives
from the functional departments at the Head Office, is
responsible for collecting information from plants and otherrelevant parties and making Company-wide decisions basedon the information collected.

Aggregating information within a plantReviewing policies on how to return home

2. Initial Response Training at Plant Response
Headquarters
In fiscal 2020, we continued to focus on practical training
by using predetermined procedures and forms. Each Plant
Response Headquarters planned a drill, created a scenario
and served as a moderator to confirm the actions thatshould be taken by its head (plant manager) and members.
By conducting training repeatedly, we intend to create astructure under which every member understands his or herrole and responds to the situation flexibly.

Disaster Prevention Structure
Disaster Prevention Response Headquarters (Established in Kariya Plant)
Plant Response
Headquarters
Kariya Plant
Obu Plant
Kyowa Plant
Nagakusa Plant &Morioka Works
Takahama Plant
Hekinan Plant
Higashichita Plant
Higashiura Plant
Anjo Plant

Key Facility
e-Lab (information
systems headquarters)

Remote Sites

Educational Sites

Affiliated Companies

Company dormitories
Company resort
facilities

Suppliers

Tokyo Office
Toyota L&F Customer
Center Tokyo
Toyota L&F Customer
Center Osaka
TMHG Training Center(Handa)Promoting Disaster Prevention at Home andRelated Enlightenment Activities
Starting from fiscal 2017, we have been undertaking
enlightenment activities for employees and their families as ameasure to promote disaster prevention and avoid disasterinflicted damage at home. Specifically, we encourage themto take three actions: preventing the overturning of furnitureand securing an evacuation route; deciding how to contact
and where to meet with family members in a disaster; andstockpiling emergency goods, food and other necessities.

Efforts to Cultivate Personnel to Engage inDisaster Prevention Activities
1. Training at Disaster Prevention Response
Headquarters
As one important role assigned to the Disaster Prevention
Response Headquarters that oversees Company-wide
disaster response, we conduct training in which employees
collect information on damages to both inside and outside thecompany premises, swiftly make decisions and disseminate
these decisions throughout Toyota Industries. In fiscal 2020,
we conducted a drill assuming an earthquake occurring in
the early hours of the morning as an effort to strengthen ourreadiness against earthquakes around the clock.

Analyzing damage information

Confirming initial response actions

3. Individual Training at Each Planta) Power Restoration Drill
Based on the procedures to restore power supplies,
including electricity and gas, which are essential inrestoring production activities, each plant conducts
genchi genbutsu (go and see for yourself) training on aperiodic basis. Through the training, we are identifying
problems and making improvements to step up ourefforts to ensure quick restoration activities.
b) System Restoration Drill
We conduct system restoration drills jointly with Toyota
Industries IT Solutions, Incorporated, a consolidated
subsidiary engaged in development and operation of
information infrastructures and systems, and work to
improve our readiness for quick restoration.
4. Training for Identifying Disaster Damage
We repeatedly conduct drills jointly with our affiliatedcompanies and business partners in order to familiarize
them with the use of IT tools to quickly identify thedamage status during a disaster.

Future Activities
Preparing for floods and other natural disasters in addition
to earthquakes has been gaining significance. Accordingly,
we will draw on our response measures that have been
implemented mainly for earthquakes and extend our efforts
to other disasters in order to increase our overall disasterreadiness.

43Company Introduction

Strategies and Businesses Promotion of ESG Initiatives
Relationship with Our Stakeholders

Relationship with Our Stakeholders
Relationship with Our Customers ————— P44–45

Relationship with Our Business Partners ———— P46

Relationship with Our Associates ————— P48–52

Relationship with Our Local Communities —— P53–54

Relationship with Our Shareholders and Investors — P47

Relationship with Our Customers
Regarding quality as one of its material issues, Toyota Industries practices monozukuri (manufacturing) thatquickly responds to the diverse, ever-changing needs of customers.

	“A product should never be sold unless it
has been carefully manufactured and fully
tested in the commercial trial, withcompletely satisfactory results.”

Carrying on the spirit of founder Sakichi Toyoda, Toyota
Industries strongly believes that quality is the lifeblood of acompany. Focusing on quality as one of our material issues
and ensuring customer safety and reassurance are our mostimportant responsibilities to our customers and form thebasis of our approach to CSR.
Toyota Industries strives to maintain and improve thetotal quality of our corporate activities, which encompasses
not only “product quality” but also “marketing quality” and“management quality.” “Product quality” is embodied in
the safety, eco-friendliness, durability, ease of use andworkmanship of our products, while “marketing quality”
entails excellent sales and service in addition to these
attributes and “management quality” further enhances ouroverall corporate image and brand strength in terms of all ofthese attributes.
Types of Quality Sought by Toyota Industries

ent
em
nag
it y
g
Ma lity
ual
q
turin
qua
ufac
ting
Man lity
r ke
Ma
qua

Quality levels that
customers truly
expectProduct quality●Safety●Eco-friendliness●Durability●Ease of use

Designquality●Brand strength●Corporate image●Sales●Service

Manufacturing capabilities

Toyota Industries undertakes product development thatmeets customer expectations by capturing market needs
and understanding how our products are actually used bycustomers.
At Toyota Industries, development of a new productentails defining specific goals to incorporate quality in every
stage from product planning and design to production
preparation, production, sales and after-sales services. We
perform a design review (DR), which allows a product toproceed to the next stage only when a responsible businessToyota Industries Report 2020

	Quality Assurance Activities based on the
Quality Guidelines
Quality forms the basis of our operations. As such, weformulated our Quality Vision, which defines our philosophy inensuring quality.
Quality Vision
Each and every member of the Toyota Industries Groupmakes sure to build in quality with ownership (Jikotei
Kanketsu) at their own workplaces and positions to supply
appealing products/services that exceed the expectations ofcustomers around the world with safe and reliable quality.

To achieve the goal of this vision, we issue the Quality
Guidelines, which identify priority quality-related issues tobe implemented in each fiscal year, to all production basesin and outside Japan and engage in quality assurance
activities accordingly. The implementation status of theseguidelines is reviewed by top management at the Quality
Functional Meeting chaired by the head of the Production
Headquarters*1 for identifying additional issues and devisingcountermeasures. Issues raised are followed up at meetingsof the Company-wide Council of Heads of Quality Assurance
Departments chaired by the head of the Quality Control
Department*1.
*1: As of March 31, 2020

Quality Assurance Activities based on the Quality Guidelines

	“Every one of us should fulfill the roles
assigned to us and deliver our best quality
products to customers.”

44

division head examines and approves whether the producthas reached the target quality level.

●Logistics●Workmanship

Checking and identifying issues ofCompany-wide quality status and progressin implementing the guidelines

Implementing
Company-wide
guidelines

Quality Functional Meeting

Quality Vision
Quality roadmap

Company-wide Council of Heads of
Quality Assurance Departments

A

P
PDCA*2cycle

Quality Guidelines

D

C
Quality assurance activities atall bases in and outside Japan

Quality Guideline 1
Quality Guideline 2
Quality assurance in Quality assurance inproduct development
mass production*2: PDCA (Plan, Do, Check, Act)

Corporate Information

Quality Guideline 3
Quality assurance atbusiness partners

Quality Guideline 4
Human resources/
workplace development

	Preventing Occurrence and Recurrence ofDefects
If a defect is found in a product after its launch, the Quality
Assurance Department of the responsible business division
takes the lead in examining and identifying the cause bygoing back to its development, design and production
processes. We implement countermeasures both from theprocess and technological aspects and revise our new
product development process as necessary. Through thesemeasures, we strive to thoroughly avoid the recurrence of thedefect in subsequent models.
Additionally, we make efforts to prevent the occurrenceof defects in all products we develop and manufacture in the
future. As an example, we provide education to production
bases in and outside Japan with an eye to preventing defects
by improving work procedures and processes.

TO P I C

Toyota Industries’ five QC circles won a gold prize at
the International Convention on QC Circles in 2019,
in which a total of 370 circles participated from 16
countries around the world. As an example, theproject of Kirloskar Toyota Textile Machinery Pvt. Ltd.
(KTTM), a subsidiary manufacturing textile machineryin India, was recognized for its genchi genbutsu
and data-based improvement of the productivityof processing lines, which also resulted in personal
growth of the project members.

Providing Support to Business Partners
Since improving the quality of our products requires
concerted efforts with our business partners in and outside
Japan, we are strengthening joint quality assurance activities
with major business partners.
In each annual quality audit, we determine priority
areas, conduct genchi genbutsu (go and see for yourself)
inspections to confirm the improvement status of thepreviously identified deficiencies and provide quality
education on items that should be reinforced in order tocultivate a deeper understanding of kaizen (improvement).
To foster voluntary quality improvement efforts of business
partners, we have introduced a self-audit system, in whichbusiness partners satisfying our criteria perform in-house
quality audits and autonomously improve their quality
assurance systems. In fiscal 2020, we again provided
education to nurture next-generation quality leaders as partof our ongoing efforts for human resources development at
business partners.
These activities enable our business partners to attain thelevel of quality assurance required and establish a culture tofoster quality assurance on their own.

	Promoting Human Resources andWorkplace Development
Toyota Industries provides systematic quality education to
all employees to help them acquire quality assurance skills
needed in actual operations. We have been soliciting creative
proposals to nurture human resources who think and act on
their own and create a better workplace through all-employee
kaizen activities, while at the same time promoting thedevelopment of human resources who can take a scientificapproach to quality assurance through quality control (QC)
circle activities and by using statistical quality control (SQC)*3
techniques and big data analysis.
To date, we have received 15 awards for employees’
creative ideas in the Creativity category in the Commendationfor Science and Technology by Japan’s Minister of Education,
Culture, Sports, Science and Technology. We have alsopresented the results of our QC circle activities at QC circle
conventions both internally and externally and received
multiple awards for our accomplishments.
Our production bases outside Japan also promote kaizen
efforts and human resources development through QC circle
activities. We help them undertake independent activities

Members receiving a gold prizeat the International Convention on QC Circles

by training QC circle instructors. As a venue for presenting
activity results, we hold the Global QC Circle Convention
every year since 2015 and provide workshop sessions toraise skills.
As for nurturing human resources who can take ascientific approach, we launched a new program to provide
basic education on big data analysis in addition to theexisting SQC education. With a particular focus on practicalapplication, we designed an original curriculum and textbook
while keeping a balance between theory and practice. In thenext five years, we will educate more than 1,000 engineers
and simultaneously nurture core human resources in thisarea. Our ultimate goal is for all our engineers to possess
basic knowledge on big data analysis so that they can solve
problems using this technique.
As described above, to reinforce our foundation for quality
assurance, we are promoting the development of humanresources and an open workplace based on the belief that
manufacturing starts with nurturing excellent personnel.
*3: Using statistical techniques to promote quality control and process improvements

Class providing basic education on big data analysis

45Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Relationship with Our Stakeholders

Relationship with Our Business Partners

Relationship with Our Shareholders and Investors

Toyota Industries encourages open procurement and seeks co-existence and co-prosperity with our business
partners (suppliers) based on mutual trust. We also facilitate environmentally preferable purchasing, humanresources development, fair trade, disaster prevention activities for a possible major earthquake and otherdisasters and more efficient purchasing.

	Fair and Equitable Business Transactions
based on an Open Door Policy
We provide fair and equal opportunities to all potential
business partners. We comprehensively evaluate ourbusiness partners based on such factors as quality, price,adherence to delivery times, technological capabilities andmanagement information. We also assess their initiatives forsafety, the environment and compliance as we strive for thetimely and stable 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 co-existence and co-prosperity withour business partners based on mutual trust. Every year, wehold procurement policy meetings and top manager seminars
for major business partners to facilitate mutual understanding
and cooperation. In addition, we provide such programs as
quality control and technical skills training, guidance directed
toward kaizen at their production sites and safety and healtheducation throughout the year.

	Reducing Environmental Impact throughEnvironmentally Preferable Purchasing
We aim to procure parts, raw materials and equipmentfrom business partners that give
sufficient consideration to theenvironment.
In the sixth edition of ourEnvironmentally Preferable
Purchasing Guidelines, we added
the aspirations in 2050 of ourEnvironmental Vision. Accordingly,
we have been strengthening
environmental managementin our entire supply chain andundertaking relevant initiatives
Environmentally Preferable
throughout the product lifecycle.

Purchasing Guidelines

Please visit our Website for detailsof our Environmentally Preferable
Purchasing Guidelines.

Web
Link to the guidelines.

	Promoting Human Resources Development
We proactively provide education to enhance procurement
knowledge both internally and externally. In fiscal 2020,
we again provided training on risk management, including
education on Japan’s Subcontracting Law, response to labor
issues that are closely related to their daily operations and46

Toyota Industries Report 2020

appropriate sale of waste. These seminars were attended
by participants from affiliated companies and Hoeikai, anorganization consisting of our business partners. We also
work with Hoeikai to provide support to strengthen the
management platforms of member companies throughToyota Production System (TPS) activities in manufacturing
and QC circle activities.
Participants of Purchasing-Related Seminars(Persons)

Risk management

Affiliated companies

Hoeikai

Subcontracting Law

Toyota Industries

Affiliated companies

1,200	Basic Perspective
Toyota Industries continually carries out timely, appropriate
and fair information disclosure for shareholders and investors.
In this way, we raise management transparency so that we
obtain an appropriate company valuation in stock markets.
We proactively provide not only information required under
disclosure laws and regulations but also information on ourmanagement policy and business activities. Also, we engage
in various investor relations activities to facilitate productive
dialogue with shareholders and investors.

General Shareholders’ Meeting

1,000
800
600
400
200
0

We aim to obtain an appropriate company valuation in stock markets through timely, appropriate and fair
information disclosure while promoting good communications with shareholders and investors.

(FY) 16

17

18

19

20

	Realizing Fair Trade throughout the Supply
Chain
As part of efforts to realize fair trade throughout the supply
chain, Japan’s Ministry of Economy, Trade and Industry has
announced an action plan for proper management of molds
for parts. In response, Toyota Industries has set up a moldmanagement project and examined how we can “reducemolds, revise management and establish new systems” asstipulated in the action plan. In fiscal 2020, we laid down
clear rules for mold management and shared them with ourbusiness partners, thereby completing our work concerning
the action plan.

	Business Continuity Plan (BCP) Activities
In further promoting our BCP activities, we are making
concerted efforts with business partners to reduce
associated risks by implementing specific measures. In fiscal
2020, to deal with frequent natural disasters in recent years,
we extended the scope of our IT system-based damage
assessment from earthquakes to other natural disasters. We
will also identify business partners with flood risk based on
hazard maps and take action accordingly.
In the face of the spread of COVID-19, we have also
started implementing measures against infectious diseases inorder to reduce supply risks in our supply chain caused by anexcessive concentration of production at a specific site.

We hold our annual general shareholders’ meeting early
to avoid the date on which many companies hold theirrespective shareholders’ meetings so that more shareholders
can attend. We are further facilitating the exercise of voting
rights of our shareholders by allowing them to exercise suchrights via the Internet and by joining the electronic voting
platform for institutional investors.
We held our 141st General Shareholders’ Meeting on
June 11, 2019, in which 483 shareholders participated.
Following the general shareholders’ meeting, we invited
our shareholders for a tour of a plant that manufactures ourmainstay lift trucks and a tour of the Toyota Commemorative
Museum of Industry and Technology established as a joint
project of the Toyota Group to foster a better understandingof our business activities.

Investor Relations Activities
At the financial results briefing, we mainly explained our
newly formulated Vision 2030 and our recent focus on the
Logistics Solutions Business and electrification efforts. In
addition to accepting individual interviews with analysts andothers, we hosted an information session for our electriccompressor business. The session included a tour of a plantas an opportunity to promote a deeper understanding of ourstrengths in the development and production fields.
As for institutional investors outside Japan, we visit major
investors to explain our management policies and growthstrategies. We also participate in conferences hosted inJapan by securities companies and hold individual meetings.
Our Website provides our corporate history, overviews ofeach business as well as product information and initiatives
to develop technologies for the future mainly for individual
investors.
Opinions and requests we collect through various meansof communications with shareholders and investors are fed
back to executives and relevant business divisions via theBoard of Directors and various committees to reflect them inour future business activities.

Major Investor Relations Activities
For institutional investors and securities analysts in Japan•Quarterly financial results briefings •Individual interviews/visits•Small meetings •Teleconferencing •Business information sessions•Facility tours •Issuing/delivering Toyota Industries Reports

For institutional investors outside Japan•Individual interviews/visits •Teleconferencing•Participation in conferences hosted by securities companies•Issuing/delivering Toyota Industries Reports

For individual shareholders and investors•Company-hosted plant tours•Issuing/delivering notice of general shareholders’ meeting•Issuing/delivering business reports

Information session for our electric compressor business (December 2019)

Returning Profits to Shareholders
Toyota Industries regards ensuring shareholder benefits as
one of the most important management policies.
Accordingly, we strive to continue paying dividends atthe consolidated dividend payout ratio of roughly 30% andmeet the expectations of shareholders upon comprehensively
taking into consideration such factors as business results anddemand for funds.
For fiscal 2020, Toyota Industries increased annual cash
dividends by ¥5.0 over the previous fiscal year and paid
annual cash dividends per share of ¥160.0 (interim cash
dividend per share of ¥80.0 and year-end cash dividend
per share of ¥80.0). Given the slowing economy due to the
spread of COVID-19, we made sure to pay the year-end
cash dividend during May 2020 on the basis of the resolutionof the Board of Directors instead of basing our decision on
the resolution of the General Shareholders’ Meetings as we
usually do.

47Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Relationship with Our Stakeholders

Notional Image of Activities to Eliminate Heat Strokes
Instill andmaintain
Introduce heatrisk assessment

Our ultimate goal is to create safe and secure workplaces for everyone, where each and every associate can
exercise their diverse potentials and play active roles.

Raise
awareness	Building a Safety-Oriented Culture That
Aims for Zero Industrial Accidents
In accordance with our fundamental policy of “fostering safe,
healthy and pleasant workplaces,” Toyota Industries strives
to prevent industrial accidents and occupational disorders
as well as realize better work environments by making
equipment more immune to accidents or disorders as early
as in their design stage.
In fiscal 2020, we continued to promote primarily safety
and health measures from human, object and administrative
standpoints based on risk assessment.
The analysis results of past accidents and interviews
with plant personnel revealed that many operators lacked
sufficient awareness of hazard sources and conditions. Asan effort to increase their individual consciousness for latenthazards in the workplace, we added hazard-related mattersto which they should pay attention into their routinely used
workplace reports of industrial accidents and potentiallyserious near-accidents as well as reports of risk prediction
activities.
With the aim of identifying all risks associated withancillary facilities and logistics during production preparations,
we conducted interviews with each workplace to checkissues they have encountered in conducting risk assessment.
Based on the results, we created and distributed manuals
and guidelines matched to actual operations to make surethat risks are identified and reduced.

for operators to use. As a specific effort, we will design acircuit configuration that completely shuts down a machineby cutting off its power when an operator accesses themachine while disabling its safety device to extract a productin production processes. This circuit configuration will beincorporated in new equipment we will install in the future. We
are also retrofitting a power shut-down feature to our existing
equipment. Until we complete the modification, we willprotect the safety of operators through periodic equipment
checkups.
In the wake of the accident, we will instill the safety first
approach firmly in all associates in seeking to establish asafety-oriented culture that aims for zero industrial accidents
within the Toyota Industries Group.
Frequency Rate of Lost Workday Injuries(%)
1.60
Manufacturing industry

1.20

0.80

Manufacturers of transportation
machinery and equipment

0.40
Toyota Industries
Good

0.00
(FY) 16

17

18

19

20

Source: Survey on Industrial Accidents, Japan’s Ministry of Health, Labour and Welfare	Promoting Activities to Reduce Heat Strokes

Genchi genbutsu education

Genchi genbutsu logistics risk
assessment

In spite of all these efforts, an associate got caught in amachine in a fatal accident at the Higashichita Plant in Aichi
Prefecture on December 6, 2019.
We recognized it was a grave situation that seriously
threatens our corporate foundation. For never repeatingsuch an accident in the future, we made efforts to identify
deficiencies and took measures to prevent recurrence.
Specifically, we conducted a full inspection of similar
machines and operations at all our plants and affiliatedcompanies around the world and added physical measures
to the machines themselves to counter the identified
deficiencies.
In order to establish a process to install equipment ina manner to ensure and maintain its safety, we formed
the Study Group for Intrinsic Equipment Safety led by
the production engineering departments to promote theintroduction of machinery and equipment that are safe

48

Toyota Industries Report 2020

We introduced heat risk assessment in fiscal 2018. Since
then, we have been improving hot working environments forheat strokes according to the identified risks and adopting
preventive measures. As we expect the trend of unusually
hot summers such as the one in fiscal 2019 to continue
in the future, we are stepping up our efforts to improve
hot environments. We have conducted on-site surveys at
workplaces where cases of heat strokes have occurred toquantitatively define sites requiring immediate action andhave been implementing measures accordingly under atwo-year plan. For workplaces whose operations preclude
the adoption of usual measures, we have devised tailoredmeans, optimized the layout of air conditioners and effectively
reduced the associated risks. Through the implementation of
additional preventive measures, such as providing education
on heat stroke prevention and encouraging a practice bysupervisors to directly hand out hydration drinks to operators,
we successfully eliminated the number of heat stroke cases
in fiscal 2020.
We will continue to raise individual awareness for theprevention of heat strokes and foster a workplace culture thatquickly recognizes and responds to such disorders.

Zero heatstrokesEstablish
behavior
and habits

”
ware
s and
“Soft awarenesre)

al e cultu
dividuc
ase in orkpla(Incre ster a w
fo“Hardware”

Behavior
improvement

muscle, bone and water within the body as well as basal
metabolic expenditure. Using these measurements alongwith the body mass index (BMI) based on height and weight,
which had conventionally served as our only indicator, weplan to capture individual physical conditions in more detailand provide appropriate health guidance.
*1: A tool to measure body composition, including muscle, fat, bone and body water

Major Health Promotion Events in Fiscal 2020
Risk
reduction(Improve hot working environments)

	Initiatives for Health Management andImprovement
As a task for the medium term, we are promoting healthimprovement of associates, mainly focusing on preventionof lifestyle diseases and mental health support activities, tocounter risks associated with aging and greater stress. In
fiscal 2020, we examined and adopted measures to foster
health promotion and maintenance activities by closely
supporting associates.
For prevention of lifestyle diseases, we conduct periodic
age-based health education for all associates. We also
feed back to associates the results of an annual healthcheckup and measurements conducted on the same day,including physical fitness, body fat percentage and amountof fat around internal organs, along with advice to improve
lifestyle habits. This health education is designed to provide
motivation for better health by letting associates think about
their health over the course of the one-day program. In
fiscal 2020, we added nine items to the physical fitness
measurement, which relate to flexibility, agility, bodily balance,
muscle strength and endurance, to provide motivation for
promoting physical fitness. Besides measurement results,
we feed back physical fitness propensity scores andcountermeasures, how physically fitted for work, assessmentof physical fitness age and recommended exercises in order
to raise relevant awareness among associates so that they
can work and take active roles until an older age.

Stop smoking awareness events•World No Tobacco Day: One-day no smoking (May 31)•No Smoking Days: Half-day no smoking (for eight days)
Participants of walking events (held jointly with healthinsurance association)

5,627 persons

As part of mental health support activities, we have inplace a system to offer early consultation through a healthrelated hotline. Other activities include upgrading our selfcare/line-care education to prevent new cases of mental
health problems and operation of a return-to-work support
program for persons on long-term leave for prevention of
relapses. We have successfully achieved positive results
through these activities.
Under the stress check system introduced in fiscal 2017,
we again conducted a check on all associates in fiscal 2020.
As in the previous fiscal year, we fed back the check results
to all participants and workplaces with suggestions for
improvement. We also set up an individual interview with adoctor for those wishing to do so and provided improvement
support as necessary to individual workplaces. As a means
to feed back the results to workplaces, we operate an ITbased workplace check results viewing system that allows
the users to perform a precise search of results and tips for
improvement. In fiscal 2020, we started providing the resultsof associate awareness surveys and related improvementImproving Mental Health Support Systems(Introduced a Stress Check System in Fiscal 2017)
Objective

Workplaces

Individuals

Providing information on mental healthPreventive
measuresAge-based health education

For preventing and ameliorating symptoms of metabolic
syndrome, we provide health promotion guidance toassociates with mild obesity or who are slightly overweight, in
addition to specific health guidance required by the Japanese
government. By doing so, we encourage associates toimprove lifestyle habits early on. In fiscal 2020, as a measure
to support associates’ self-help efforts for health promotion
and maintenance, we expanded the scope of our financial aid
system to include expenses for influenza vaccination, medical
examinations for early detection of diseases, exercises andhealth promotion tools. In fiscal 2021, we will introduce abody composition analyzer*1 to measure amounts of fat,Early
detection/
early
resolution

Improving support via the introduction of a stress check system
Encouraging associates
to be more aware of
their health and offering
advice on healthimprovement measures

Mental health education

Relationship with Our Associates

Interviews aspart ofhealth checks

Preventing
relapsesRaisingawareness ofhealth-related
hotlineUnderstanding thecauses of stress in theworkplace andimproving working
environments<Consultation system> Workplacecheck results• Industrial healthviewing systemstaff (in-house)(also providing the• External institutions results of associateawareness surveys)

Return-to-work supportM ajor Activity Indicators
Activity indicator

FY2018FY2019FY2020Participants of age-based
health education*2
Rate of undergoing a stress
check

2,422
persons

2,470
persons

2,357
persons

97%

99%

99%

*2: Temporarily suspended from March 2020 for prevention of COVID-19

49

Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Relationship with Our Stakeholders

Toyota Industries is promoting measures for prevention of
COVID-19 by formulating a response manual based on
the Japanese government’s and other related guidelines.
We encourage all associates to take seven measures suchas checking body temperature every morning, frequent
hand washing and following proper cough etiquette. Each
workplace is also striving to cut back person-to-person
contact by promoting working from home and online meetings
as well as eliminating non-urgent business trips. We have alsoestablished a system to prevent the spread of infection should
an associate get infected or become suspected of infection.
Outside Japan, we are undertaking business activities while
thoroughly implementing infection prevention measures as per
the instruction of the government of each country.
We will continue to take necessary preventive measures
matching to the conditions of each company and strive tocreate workplaces where associates feel safe to work.

	Enhancing Team Strength
Toyota Industries believes
Management Skills
that it is essential to
Technical Skills
QC, SQC, etc.
Expertise/skills/know-how
enhance team strength
Ability to identify andresolve issues
so that each associate
Ability to merge multiple
Team
Strengthlevels of skill
can work with vitality
Leadershipand the Company can
To pursue improvements
thoroughly and continuously
achieve sustainablegrowth.
Spirit of Harmony
Teamwork
We believe that team
Well-roundedhumanitystrength is made up of“technical skills” thatform the basis of manufacturing, R&D and other productionrelated operations, “management skills” to make maximum
use of technical skills and a “spirit of harmony” that supports
both. While further enhancing our team strength, we are
striving to extend and hand it down beyond all businessdomains, generations and geographic regions.

[Technical Skills]
To develop skills to support manufacturing, the Technical
Learning Center, one of our training functions, plays thecentral role in associate education, offering basic skills
training at the Technical Training School and facilitating
efforts to enhance the skills of young technical staff throughin-house skills contests. We also work to cultivate highly
skilled specialists through participation in the national andinternational skills competitions.
At the 57th National Skills Competition*3 held in 2019,in addition to receiving prizes in various other categories the
Toyota Industries team won a gold medal in the “electricalwelding” category, silver medals in the “structural ironsmith”

50

Toyota Industries Report 2020

Initiatives for Promoting Active Roles of Female Associates

Phase 1

Shoma Kamiya, who won the gold medal
at the 57th National Skills Competition*3: S kills competition for determining
Japan’s top young engineersNumber of Medals Won at the National Skills Competition
FY2016FY2017FY2018FY2019FY2020Gold medal

1

1

1

0

1

Silver medal

2

3

4

0

2

Bronze medal

3

1

1

3

2

Total

6

5

6

3

5

Phase 2Phase 3

Establishing and enhancing work- Cultivating a culture to encourage
life balance support systems
more active roles
to instill related practices

Undertaking initiatives to promote even greater roles

2002 —

2015 —

Promoting active roles

Efforts for Prevention of COVID-19

and “mechatronics”
categories and bronze
medals in the “mechanicalengineering design –CAD” and “structuralironsmith” categories,
thereby attaining medals
for the 19th consecutive
competition.

Supporting
work-life balanceexamples on the same system, allowing individual workplaces
to analyze their respective conditions from a multifaceted
viewpoint and voluntarily engage in improvement activities.
For these efforts, Toyota Industries was again recognizedin the large enterprise category of the 2020 Certified Healthand Productivity Management Organization Recognition
Program (White 500) jointly promoted by Japan’s Ministry of
Economy, Trade and Industry and the Nippon Kenko Kaigi.
We will continue to undertake activities to promote bothmental and physical health.

2008 —

Cultivating a culture• Opening a diversity-related pageon the intranet• Female associate exchange
meetings• Holding lectures

Project to promote more active roles for female
associates in office work and engineering fields
Changing mindsets among managerial staff and across all associates

Career support for female associates
Promoting flexible working practices

Enhancing support systems• Extending the period of child • Introducing a shorter work-hour system for child care
care leave• Introducing a work-at-home system• Introducing a leave system to allow
parental care of children with illnesses• Establishing on-site day care center• Installing delivery lockers• Introducing a “welcome-back” system• Introducing a financial aid systemfor day care costs• Introducing a system of leave
for fertility treatment[Management Skills]
We conduct TICO Business Practices (TIBP) training targeting
managers and associates in office work and engineering
fields, with the aim of mutually sharing the thinking and values
that the Company gives importance to, as well as to enable
our associates to solve problems effectively and efficiently.
TIBP training programs are also provided at affiliatedcompanies around the world in our efforts to raise the level ofmanagement skills throughout the Toyota Industries Group.

[Spirit of Harmony]
We are creating a bright, energetic and caring work
environment that fosters a dynamic workforce and allows
every member to demonstrate his or her capabilities both as
an individual and as a team. We are proactively encouraging
communication not only during work hours but also throughsocial gatherings organized by each workplace, sports days
and summer festivals held by respective business divisions,Group-wide Ekiden long-distance relay races and cheersquads for various sports events held jointly among Toyota
Industries Group companies.

	Establishing Work Environments Where
Diverse Human Resources Can Play Active
Roles
We are implementing a variety of measures to create aworkplace environment that enables a diverse range ofhuman resources to fully exercise their capabilities. These
include helping associates maintain a work-life balance,
promoting active roles of female associates, supporting
the employment of persons with disabilities and creating
an environment in which older associates can work more
actively.

Efforts to Support Work-Life Balance
Since around 2002, we have been setting up various systems
to help associates balance work and family. These include
an on-site day care center; a return-to-work (“welcomeback”) system, which allows associates who have left work
to care for children and family members or to accompany
their spouse for a job transfer to get reinstated under certain
preconditions; a shorter work-hour system for child care;

and a leave system and loan system for fertility treatment.
Through these systems, we provide an environment for
associates to work at Toyota Industries for longer years withpeace of mind.
As an effort to support associates to balance their workand nursing care, we distributed the Handbook for Balancing
Work with Nursing Care to associates aged 40 and above
to help them gain knowledge on nursing care and to createa workplace culture that allows associates to seek advice
easily. We also regularly hold seminars on balancing workwith nursing care for associates and their families and provide
newsletters on nursing careto those who are interested.
As a result of these efforts,
Toyota Industries received“Platinum Kurumin”
certification from the Ministryof Health, Labour andWelfare in August 2019 inrecognition of our excellent
efforts concerning work-lifebalance as well as a “FamilyFriendly Company” award
from the Aichi prefectural
Seminar on balancing work
government in Februarywith nursing care
2020.

Promoting Active Roles of Female Associates
In addition to enhancing various systems to support worklife balance, we have proceeded with the creation of anenvironment that allows female associates to continue
working, and in recent years, augmented our efforts topromote their even greater roles.
In 2015, we set up a project to promote more active roles
for female associates in office work and engineering fields,comprising males and females from different departments.
This project was key for the identification of issues andformulation of policy proposals in promoting active rolesof female associates, which formed the basis for thedevelopment of a Company-wide action plan in clarifying
the initiatives for this project. In carrying out the action plan,we specifically focus on the initiatives to change the mindset
among managers and across all associates, provide career
support for female associates and promote flexible working
practices.
Since fiscal 2017, we have held a seminar for a
cumulative total of more than 1,300 managers who directly
engage in the mentoring and development of associates. In
fiscal 2020, we conducted enlightenment activities to fosterA ction Plan

Implementation
FY2016 – FY2021(1) Launch, message from president(2) Awareness seminar for managerial staff
Changing
mindsets(3) Follow-up on individual development plansamong(4) Getting spouses involved in pre-maternity
managerial
leave seminars
staff and acrossall associates (5) Lectures by male role models(6) Promoting further engagement of maleassociates in child care
(1) Sending associates overseas for training at
an early stage in their careers(2) Career training and interviews for female
assistant managers(Ongoing)(Ongoing)

Career support(3) Role model exchange meetings
for female
associates(4) Early return-to-work support (pre-maternity
leave seminars)(5) Early return-to-work support (financial aid
system for day care costs)(1) Expanding work-at-home options
Promotingflexible working (2) Establishing satellite offices
practices(3) Installing refrigerated delivery lockers
Promoting more active roles of female associates inengineering field

Seminar for managerial staff members

Refrigerated delivery lockers

51Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Relationship with Our Stakeholders

an understanding of the environment in which associates,
both male and female, having limited working hours due tonursing care or child care are working. We also worked toraise awareness of human resources development that takes
into account their life events.
In order to create an environment to allow associates
who are balancing work and child/nursing care to work withhigher motivation and pursue career development, we haveenhanced our programs to support the early return to workfrom a break in their career. Efforts include a full-day work-athome system launched in October 2016; pre-maternity leaveseminars started in December 2017 for associates and theirspouses to think about a way of working after returning towork; and a financial aid system for day care costs adopted
in April 2018 for associates working while taking care of
infants younger than one year old.
As a result of these initiatives, the number of female
associates holding the assistant manager or higher position
has doubled from the initial level. In October 2016, wereceived “Eruboshi (“L Star”: L stands for Lady, Labourand Laudable)” certification, which is given to companies
making excellent efforts in promoting female engagement in
the workplace, from Japan’s Ministry of Health, Labour andWelfare. In November 2019, we also received an “Excellent
Company” award from the Aichi prefectural government
under its “Female-Friendly Company” certification program.
We have been making ongoing efforts to improve
workplaces to offer females a wider range of jobs andhigher quality of work, launching new initiatives to promote
active roles of female associates in production operations
and creating a better working environment to enable all
T OPI CNumber of Female Associates Holding Assistant Manager or
Higher Position(Persons)

150

With a view toward creating an enriched and healthy society and ensuring its sustainable growth, we fulfill
our role as a good corporate citizen and actively undertake social contribution activities in every region
where we do business.

100

50

0

	Activities as a Good Corporate Citizen
(FY)

16

17

18

19

20

(As of March 31 of each fiscal year)

Pre-maternity leave seminarassociates working under time constraints to fulfill theirindividual potential.

Employment of Persons with Disabilities
We respect the idea of people with and without disabilities
working together and sharing life and work values. Under thisbasic policy, we continue to employ persons with disabilities
every year. They are assigned to a variety of sections andwork with other members to perform their designated tasks.
In fiscal 2020, the ratio of associates with disabilities on a
non-consolidated basis was 2.41%.
Ratio of Associates with Disabilities (Non-Consolidated)

Promoting More Active Roles of Female
Associates in Engineering Field
We aspire that all associates engaging in production
operations fully work and take active roles until
an older age. In order for female associates to doso, we need to overcome issues of gender-relateddifferences in physical strength and frame as well as
the challenges of working during pregnancy, after
giving birth and while raising children. As a meansof doing so, we formed a Female Working Groupand Job Level Working Group in fiscal 2020. These
groups have been working to review current issues,
identify countermeasures and formulate an action
plan for the next and following fiscal years.

Working group participants

52

Toyota Industries Report 2020

Web

Relationship with Our Local Communities

Based on “Respect for Others” as described in our Basic
Philosophy, we strive to fulfill our role as a good corporate
citizen in every region where we do business and actively
engage in social contribution activities to realize an enriched
and healthy society. In our activities that emphasize social
welfare, youth development, environmental protection andcommunity contribution, we not only provide cooperation andsupport through personnel, facilities, funds and know-how
but also strive to closely connect with participants. To foster
employees’ awareness of their ties to society and raise theirinterest in contributing to society, we make enlightenment
efforts such as sharing information on volunteer activities
and providing venues for volunteer activities that encourage
the participation of all employees. Employee associations*are actively undertaking various activities to contribute to
local communities, mainly in the areas of supporting welfare
facilities and protecting the natural environment.
* Voluntary organizations formed by employees at each job level

	Structure for Promoting Social Contribution
Activities
The CSR Committee deliberates on policies of our social
contribution activities while the Social Contribution Group
within the General Administration Department at the Head
Office takes the initiative in carrying out activities.

(%)
2.5

Link to activities.

M ajor Social Contribution Activities of Toyota Industries andGroup Companies
Theme

Activities

Events to interact with persons with disabilities· “Walk Rally (orienteering),” harvest festival, festival
Support for welfare facilities· Support for charity bazaars at facilities by providing goods
Social· Volunteer work for facility cleanup/repair/pruning/weeding
welfare· Support for sales of products from facilities for persons with disabilities by
providing opportunities to set up stalls· Volunteer listening activities at elderly care facilities
Cooperating in a Soccer Class for Children with Autism or Down
Syndrome (China) (P54)
Support for Youth Invention Clubs· Monozukuri workshops for elementary school children during summer
vacations· Holding handmade kite-flying competitions
Youth· Running craft corners at local events
development
Providing plant-hosted environmental education to elementary school children
Providing monozukuri lessons at school
Holding Mini Concerts at Elementary Schools (P53)
Helping to Distribute School Supplies to Children (U.S.A.) (P54)
Initiatives for forest conservation· Tree thinning activities for conservation of prefecture-owned forests
Environmental· Producing and donating benches that made effective use of thinned wood
protection
Tree-Planting Activities for Creating Rich Forests (P53)
Changing and Reducing Packaging Materials (Netherlands) (P54)
Participation in local traditional event (Mando Festival)
Road cleanup activities in areas around plants
Community Activities to raise awareness for traffic safetycontribution Crime prevention patrols
Cooperating in Local Firefighting Operations and Becoming a “Partnerof Firefighters” (Germany) (P54)
Holding charity concert
Support for international NGO through volunteer activities to collect spoiled
Other
postcards and others
Periodic blood donation drives(Activities without country designation were conducted in Japan.)

2.4
2.3

Activity Examples of Toyota Industries (Japan)

2.2
2.1

Holding Mini Concerts at Elementary Schools

2.00(FY) 16

17

18

19
20
(As of June 1 of each fiscal year)

Creating a Work Environment for Older Associates
In order to enable older associates to work and take activeroles in production operations, we have been focusing on
creating a better, less physically stressful work environment
for them by formulating rules common to all workplaces on
the handling of heavy objects, working posture and otherpractices, as well as by improving processes in productionlines.
In addition, we hold“Seminars for an Active
Life” for associates
reaching the age of 50
and 55 to give them an
opportunity to envision life
and work for the next
Improvement activity
on an engine production line
10 years.

Youth development

With an aspiration to provide children, who are the leaders of the coming age, with an opportunity
to cultivate richness of mind through “real” music, we started inviting violinists, pianists and otherprofessional musicians and organizing mini concerts at elementary schools in fiscal 2011. In fiscal
2020, we held such a concert at seven elementary schools in Aichi Prefecture. At Yoshihama
Elementary School in Takahama City, in particular, we invited a choral group from Latvia, known
as the singing nation, who sung the school song as a surprise gift for the children. More than 500
children were completely immersed in the choir’s beautiful, transparent voices.
Tree-Planting Activities for Creating Rich Forests

The team leader association of Toyota Industries has been
undertaking tree-planting activities since fiscal 2012 with the aimof restoring biodiversity and creating rich forests. In fiscal 2020,
about 130 members and their families planted cedar saplings inHamamatsu, Shizuoka Prefecture. It will take some 50 years forthese saplings to mature, and the participants planted each saplingwith care, hoping for healthy growth.

Environmental protection

Mini concert at an elementary school

 umber of Participants of Social
N
Contribution Activities of
Employee Associations(Persons)
1,500
1,000
500
0

Tree-planting activity
for creating a rich forest(FY) 16

17

18

19

20

Each employee association voluntarily andproactively engages in social contribution
activities, with the number of participantsremaining at a high level every year.

53

Determining CSR Materiality
Activity Examples of Consolidated Subsidiaries (Outside Japan)
China Cooperating in a Soccer Class for Children with Autism or Down Syndrome

Social welfare

Toyota Industries Management (China) Co., Ltd. (TIMC)[Import-export trade, logistics operations within China and operation of distribution centers]

Toyota Material Handling (Shanghai) Co., Ltd. (TMHS)[Sales of materials handling equipment]

Toyota Textile Machinery (Shanghai) Co., Ltd. (TTMS)[Installation, servicing and sales of supply parts of textile machinery]

TIMC, TMHS and TTMS volunteered in a soccer class held to support therehabilitation of children with autism or Down syndrome. During the class, about 20
children enjoyed physical exercise through soccer and experienced the joy of scoringa goal through teamwork. At the end of the event, the three companies donatedstationary goods with the Toyota Material Handling Group logo and bath towels madeby using our air-jet looms.

Participants of a soccer classfor children with autism or Down syndrome

Under the Toyoda Precepts(corporate creed), Toyota Industries
has been pursuing solutions to social
issues and undertaking a broad rangeof businesses since its founding. In
keeping with recent changes in thebusiness environment, we have once
again clarified which social issues
we should tackle as our CSR material
issues, and will work to contribute to
the resolution of these issues.

CSR Materiality

SDGs to Contribute

Mitigation of Global Warming
Contribution to Circular Economy

Resolving Social
Issues throughOur Business

Foundation
Supporting
Our Business
Operations

Creation of Innovative ValuesP roducts and Services Which Contributeto Safety, Security and ComfortM utual Prosperity through Partnerships
with Local Communities
Safe and Healthy Work Environments
Leveraging Diversity and Inclusion
Sustainable Procurement
Compliance and Risk Management

Process to Determine CSR Materiality
U.S.A. Helping to Distribute School Supplies to Children

Youth development

Uster Technologies, Inc. (USTER USA)

1 Identification of Issues Relevant to Toyota Industries

Identifying, among various social issues, the ones relevant to our business activities based on the United
Nations’ 17 Sustainable Development Goals (SDGs) and 169 targets as well as guidelines[Production, sales and after-sales services of quality measurement instruments for fiber, yarn and fabric]

In August 2019, USTER USA participated in the annual “Shoes for School” event
organized by the local NPO Knoxville Area Urban League. The event is conducted withthe aim of supporting children to head back to school and start their academic year
well prepared with new shoes, socks, school supplies and free haircuts. At the event,associates packed and distributed 6,000 pairs of socks donated from an apparel
manufacturer. USTER USA volunteers were grateful to be part of the local communitythat came together to bring a smile on children’s faces.

[Items we refer to]1) 17 SDGs and 169 targets

2) Important ESG items
Children receiving school supplies
at the “Shoes for School” event

Netherlands Changing and Reducing Packaging Materials

Environmental protection

Vanderlande Industries Holding B.V. (Vanderlande)

2 Assessment of Importance

Assessing the importance of the identified issues from both internal and external viewpoints to selectthose having higher degrees of importance[Assessment method]

For protection of the environment, Vanderlande changed and reduced packaging
materials used to transport spare parts necessary for maintenance of logistics
systems. Firstly, Vanderlande changed packing tape from vinyl to recyclable paper,
which is expected to reduce its annual plastic consumption equivalent of 30,000
meters of tape. Another improvement was a reusable separator to place a maximumof eight small parts, which had been packaged separately, in one box. Vanderlande
will continue to make effective use of resources and undertake its corporate activities
in an environmentally friendly manner.

1) Conducting questionnaires and discussions with relevantinternal departments2) Plotting onto a 2 x 2 materiality matrix to selectissues having higher degrees of importanceImportance whenviewed from outside[Provision of logistics solutions]

Package using a reusable separator

Importance for Toyota Industries

Germany Cooperating in Local Firefighting Operations and Becoming a “Partner of Firefighters”

Community contribution

3 Validation of Adequacy

TD Deutsche Klimakompressor GmbH (TDDK)[Production of car air-conditioning compressors]

Conducting reviews by both our top management and outside experts to receive feedback and confirm
the adequacy of the selected issues

In rural areas near Bersndorf in the Free State of Saxony, where TDDK is located, local
fire brigades are mostly on a volunteer basis and in case of need volunteer firefighters
get an alert. TDDK supports their activities through donations as well as encouraging
and allowing associates to respond to alert calls during their work time. As a show ofgratitude, TDDK was honored as a “Partner of Firefighters” in October 2019 by thecounty’s head of firefighters. TDDK will continue its ongoing efforts to cooperate inlocal firefighting operations.

4 Approval by Top Management
Local fire brigade supported by TDDK

54

Toyota Industries Report 2020

Gaining approval of the CSR Committee chaired by the president and comprising our top management
based on the validation results

55Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Special Feature on the Environment

Special Feature on the Environment
Evaluation of the Efforts of TMHMS

TMHMS’ Path toward Zero
CO2 Emissions

These advanced efforts of TMHMS throughout
its business activities were highly recognized. In
December 2019, the company received a Biogas
Award (second place), which is given to local
governments, companies and individuals in Sweden,
and was selected as the Sustainable Company of theYear by the local community.

Toyota Material Handling Manufacturing Sweden AB(TMHMS), a subsidiary manufacturing materials handlingequipment in Sweden, became the first company in the

Future Activities to Reduce CO2 Emissions
throughout the Product Lifecycle

Toyota Industries Group to achieve a zero CO2 emissions plant.

Toyota Material Handling Europe AB (TMHE), a subsidiary serving as the regional
headquarters of the materials handling equipment business in Europe, has formulated a
two-pronged policy aimed at zero energy muda (waste) and zero carbon emissions fromour operations by 2030 in accordance with Toyota Industries’ Environmental Action Plan.
Based on this policy, the TMHE Group has been striving to reduce CO2 emissions at all of
its bases in Europe in collaboration with customers and business partners.
In 2019, TMHMS, one of TMHE Group companies, became the first company in the
Toyota Industries Group to achieve a zero CO2 emissions plant and realize the policy.
We will share their efforts and accomplishments broadly both in and outside the Toyota
Industries Group and seek to contribute to the creation of a sustainable society.

❷ Only using electricity from renewable energy

Along with daily energy-saving activities, TMHMS madeefforts in three major areas.

TMHMS introduced hydropower in 2015 and became thefirst company in the Toyota Industries Group to solely use
green electricity, thereby eliminating CO2 emissions fromelectricity consumption.

①

②

③

Switching to districtbiomass-derived
steam for heating*

Only using electricity
from renewableenergy sources

Switching from LPG
to biogas

Zero CO2 emissions plant❶ Switching to district biomass-derived steam
for heating

As its heating-purpose energy, TMHMS uses biomassderived steam supplied through district heating. TMHMS
replaced heavy oil used for space heating and liquefied
petroleum gas (LPG) for heating wash water in the painting
pretreatment process with biomass steam in 1987 and2009, respectively.

Toyota Industries Report 2020

Richard Bjersér

Environment Manager ofProject Zero

Project Manager ofProject Zero

Three key factors led to the success of the
project. The first is the Toyota Industries Group’s
clear Environmental Vision, which provided
strong motivation for us to work for a zeroCO2 emissions plant. The second is strong
management on site, with project members fromvarious departments gathering their capabilities
to carry out a reliable simulation for realizing
a zero CO2 emissions plant. The last is that abiogas plant promoted under Sweden’s majorenergy policies was located nearby.

■ Path toward Achieving a Zero CO2 Emissions Plant

Toward a Zero CO2 Emissions Plant

Daily energy-saving activities

56

Ernesto Domínguez
TMHE President and CEO

In addition to achieving zero plant CO2 emissions, TMHMS
has been working to reduce CO2 emissions throughout the
product lifecycle from production to sales, use, disposal
and recycling. In January 2020, TMHMS made a first stepin its efforts to reduce logistics-derived CO2 emissions
with the introduction of biogas trucks in collaboration withtransportation companies. These trucks will be used in someof the transportation operations between TMHMS plants
and between TMHMS and business partners. In production
operations as well, TMHMS is making continuous efforts
to reduce energy consumption by installing solar panels,
visualizing energy use and undertaking kaizen (improvement)
activities. Through these endeavors, TMHMS intends to makea higher level of contribution to the realization of a low-carbon
emission society.

Johanna Arnstedt

sources

1987: Switch from heavy oil to biomassderived steam (for space heating)2009: Switch from LPG to biomass-derived
steam (for heating wash water in the
pretreatment process of painting
application)

2017: Replace LPG burners
with electric burners

2018: Reduce the temperature
for pretreatments andof ovens in the painting
process

2015: Power contract forhydropower generation❸ Switching from LPG to biogas

Switching to biomass steam and green electricity only left
one issue: about 3,000 tons of CO2 emitted every year
from the use of LPG mainly in painting dry-off ovens. To
eliminate the emissions, the manufacturing, environment,
procurement and other departments of TMHMS joined
hands and launched Project Zero in 2017. After muchconsideration, they decided to introduce biogas, a gas frombiomass, which does not use fossil fuels, and began toinstall necessary equipment and modify existing facilities.
TMHMS completed its switch to biogas in August 2019 andachieved a zero CO2 emissions plant for the first time in the
Toyota Industries Group.

Continuous energy1987
saving efforts

2009

2015

2019: Switch from LPG to biogas;
Install solar panels

2017

2018

2019:
Achieve a zeroCO2 emissions
plant

2019

2020

*B
 iomass is a general term used to referto organic materials coming from plants
and animals. When viewed from thelifecycle of an organic material, biomass
is regarded as carbon neutral, as CO2
emitted when generating steam orburning gas is offset by CO2 absorbed
during photosynthesis.

Displays celebrating World Environment Day

Production at carbon-free plant

57

Company Introduction

Web

Environmental Initiatives

Environmental Initiatives

n Product Related
Sixth Environmental Action Plan Targets

Reducing Environmental Risk andEnvironmental Management ——————— P65–67
Establishing a Society in Harmony with Nature —— P63–65

Action Policies

Sixth Environmental Action Plan
The results of our activities in fiscal 2020 showed steady progress across the board toward achieving respective
targets for fiscal 2021.

	Progress of Sixth Environmental Action Plan
With an eye to realizing a prosperous life in harmony with
the natural environment through the establishment of asustainable society, we formulated the Sixth Environmental

Action Plan for the period from fiscal 2017 to fiscal 2021
and are promoting activities according to the plan. Throughactivities undertaken during fiscal 2020, we made steadyprogress toward achieving respective targets for fiscal 2021.

n Production Related
Establishing a Low-Carbon Emission Society
Action Policies/Specific Actions

FY2020 Achievements

Reduce CO2 emissions from production activities•Develop and introduce production engineering
technologies with lower CO2 emissions•Reduce CO2 emissions by fully implementing
improvement activities on a daily basis•Develop innovative CO2 reduction technologies that utilize
clean energy•Manage greenhouse gases other than CO2
Reduce CO2 emissions from production-related
logistics•Improve transportation efficiency through such measures
as modal shift and better cargo loading efficiency

Subject

CO2
emissionsControl Items

Base Year(FY)

Achievements

Targets

Nonconsolidated

Total
emissions

2006

–14%

–10%

–28%

–26%

–33%

–30%

–36%

–28%

Emissionvolume perunit of
Non1
consolidated production*

2006

Emissionvolume perunit ofproduction

2007

GlobalPromote effective resource utilization in
production activities•Reduce use of packaging materials•Monitor water input and output in each country/region
and develop and promote appropriate measures

FY2020 Achievements
Subject

Scope

Japan
consolidated
Waste
generation
volumeNonconsolidated

Control Items

Base Year(FY)

Reduce CO2 emissions throughproduct and technology
development

Establishinga Recycling-BasedSociety

Implement initiatives to promote
3R (reduce, reuse and recycle)
design for effective resource
utilization•Reduce use of resources through longer product life
•Reduce use of resources through standardization, modularization
and reduction of components•Reduce use of resources through development of technologies toenable weight reduction and downsizing•Promote reuse of components and resources•Developed new DC-DC converter•Developed next-generation engine•Developed new AC inverter•Developed fuel cell lift truck

Reducing
Environmental Risk
and Establishing aSociety in Harmony
with Nature

Reduce emissions to improve
air quality in urban areas in all
countries and regions•Develop engines that meet future regulations•Developed next-generation engine

Manage chemical substances
contained in products•Investigate chemical substances contained in products andmanage switching over of SVHC*3 and other substances ofconcern to other substances•Supported business partners in Japan for establishinga chemical substance management system•Conducted survey on chemical substances
contained in products

Achievements

Sixth Environmental Action Plan Targets
Action Policies

Reducing
Environmental Risk
and Establishing aSociety in Harmony
with Nature

–27%

2006

–44%

FY2020 Achievements
Subject

Further reduce emissions of substances of concern•Minimize the use of substances of concern by promoting
efficient production activities

VOC*2
emissions

Scope
Nonconsolidated(automobile
body)

Control Items
Emissionvolume perunit ofproduction

Achievements

2006

–36%
(24g/m2)

FY2020 Achievements

Augment activities related toprotection of biodiversity

Augment and promoteconsolidated environmental
management•Build a global environmental management system and promote
related activities to:Comply with environment-related laws in each country and region
Formulate a medium-term plan based on visualization ofenvironmental risks and conduct activities to prevent risks fromoccurring
Enhance risk communication with relevant organizations andlocal residents
Achieve the highest-level environmental performance in eachcountry and region•Enforce strategic environmental management that integrates
environmental activities and business activities•Promoted mitigation activities•Inspected environmental risks at production
bases in Japan•Introduced Reporting System for Improvementin Sustainability Engagement (RISE)

Enhance education andenlightenment activities•Extend the scope of Toyota Industries’ enlightenment activities toconsolidated subsidiaries in and outside Japan•Give back to society the outcomes of enlightenment activities•Held various events during Environment
Strengthening Period (from June to August)•Provided education on environmental management

Promote environmental activities
in collaboration with business
partners•Ensure compliance with laws and regulations and improve
environmental performance based on the Environmentally
Preferable Purchasing Guidelines•Held briefing sessions for business partners in Japan•Held an environment-related liaison meeting ofbases in China•Pursue higher brand image through proactive information
disclosure•CDP*4 climate change: ranked A(on a performance band of A to F)•CDP water security: ranked A(on a performance band of A to F)•Received a Minister of Economy, Trade andIndustry award in the Energy Conservation Grand
Prize program (Nagakusa Plant)•Participated in All Toyota Green Wave Project•Devised biodiversity conservation action plan
within Toyota Industries premises

Promoting
Environmental
Management–29%

Improve eco-conscious brand
image

FY2021 Targets

Base Year(FY)

Specific Actions•Share the biodiversity guidelines across all Toyota Group
companies and contribute to the expansion of a habitat forliving organisms•Formulate and promote plans to link activities and connect
green zones by undertaking activities for conservation of
biodiversity throughout the Toyota Industries Group, including
at consolidated subsidiaries in and outside Japan

Targets

Reducing Environmental Risk and Establishing a Society in Harmony with Nature
Action Policies/Specific Actions•Developed new vane-type compressor•Developed next-generation electric compressor•Developed new vehicle•Reduced air consumption of air-jet looms•Developed fuel cell lift truckn Others

FY2021 Targets–44%
Emissionvolume perunit ofproduction

FY2020 Achievements

Establishinga Low-Carbon
Emission Society

Establishing a Recycling-Based Society

Promote measures against resource depletionby recycling waste•Reduce the volume of discarded materials by taking action
at the source, such as improving yields and other measures•Promote internal reuseSpecific Actions•Develop technologies that contribute to an even greater levelof energy efficiency•Develop products and technologies that respond to electrification•Develop technologies to enable weight reduction•Reduce energy loss
•Develop technologies for the realization of a hydrogen-based society

FY2021 Targets

Scope

CO2
Nonemissions
from logistics consolidated

Action Policies/Specific Actions

Corporate Information

Link to initiative details.

Vision for Environmental Activities / Structure to
Sixth Environmental Action Plan ————— P58–59
Establishing a Low-Carbon Emission Society — P61–62
Implement Environmental Management ————— P60–61
Establishing a Recycling-Based Society —— P62–63

Strategies and Businesses Promotion of ESG Initiatives

Targets–36%(24g/m2)*1: We manage emissions in each business by using either unit of production or unit of sales as a basic unit of emissions. The weighted average ofreduction rates of all businesses is used as our management index.
*2: Volatile Organic Compounds*3: Substances of Very High Concern*4: An international NGO running a project in which institutional investors work together and request companies around the world to disclose theirstrategies against climate change and greenhouse gas emissions data

Web
Link to the action plan.

Details of the Sixth Environmental Action Plan are available at our Website.

58

Toyota Industries Report 202059

Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Environmental Initiatives

Vision for Environmental Activities
We have defined our aspirations in 2050 and launched the Sixth Environmental Action Plan in fiscal 2017.

an external lecturer for upgrading the quality of our internal
audits. The curriculum covered a method to audit on-siteenvironmental management, which is one of the priority audit
items for fiscal 2020, and participants accordingly learned
required skills.

	Environmental Audits
Global Environmental Commitment
As one tenet under our Basic Philosophy, Toyota Industries
works to contribute to regional living conditions and social
prosperity and also strives to offer products and services thatare clean, safe and of high quality. Accordingly, in February
2011, we established the Global Environmental Commitment,a specific environmental action guideline, to be shared andimplemented throughout the Toyota Industries Group. The
entire Toyota Industries Group will dedicate concerted efforts
Aiming at realizing a prosperous life inharmony with the natural environment

Environmental risk
reduction
Society in harmony
with nature
Low-carbon
emission society

Recycling-basedsociety

Environmental Management

Notional Diagram of Global Environmental Commitment

to realizing a prosperous life in harmony with the naturalenvironment.

	Aspirations in 2050 and the Sixth
Environmental Action Plan
Following the 2015 adoption of the Paris Agreement, aninternational framework for action against climate change, theestablishment of a low-carbon emission society has become
a global common goal. For Toyota Industries as well, theneed to take further proactive measures is growing as global
environmental issues continue to become of greater concern,with more people becoming increasingly conscious about theenvironment.
Under the circumstances, in 2016 we defined ouraspirations in 2050. The Global Environmental Commitment,
which represents our basic approach to environmental
activities, specifies four action themes, namely, 1) establishinga low-carbon emission society; 2) establishing a recyclingbased society; 3) reducing environmental risk and establishinga society in harmony with nature; and 4) promoting
environmental management. As a milestone toward achieving
our aspirations in 2050, we have formulated the Sixth
Environmental Action Plan, a five-year plan for the period
from fiscal 2017 to fiscal 2021, and will resolutely undertake
activities in accordance with the plan.

Structure to Implement Environmental Management
Positioning environmental response as one of its most crucial management issues, Toyota Industries is enhancing
its environmentally oriented corporate management on a global basis through the promotion of consolidated
environmental management.

	Promotion of Environmental Management
SystemToyota Industries has positioned environmental response as
one of its most crucial management issues. To quickly reflect
top management’s decisions on business operations, Toyota
Industries has established and been operating a Companywide integrated environmental management system (EMS),
with the president at the top.
As in the previous fiscal year, in fiscal 2020 we conducted
introductory educational courses to foster the knowledge
needed for environmental management and an introductory
educational course for environmental audits to cultivate
knowledge and techniques of internal audits. As department
heads and other personnel in managerial positions
proactively attended these courses, we were able to promote
the enhancement of environmental management and thedevelopment of internal auditors.
For internal auditors, we provided skill-up training by

60

Toyota Industries Report 2020

Environmental Management Structure
Organizations

Committees
Environmental Committee

PresidentInternal audit
Responsible internal auditor

Specialized committees•Team leader•Supervising auditors•Auditors

Product Environment Subcommittee

Chief environmental administrator
Admin office
Head Office
Corporate Planning
R&D
Purchasing
Quality Assurance
Human Resources
General Administration

Divisions
Materials Handling Equipment
VehicleProduction Environment Subcommittee
Company-Wide CO2Emission Reduction Conference
Company-Wide CO2 Zero
Emissions Challenge Subcommittee

EngineCompressor
Electronics
Textile Machinery

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

Division-Based
Promotion Committees

Toyota Industries implements annual internal environmental
audits as well as external audits carried out by anindependent third-party institute.
In fiscal 2020, the external review identified no nonconformance issues. The review, however, pointed out somematters that could potentially constitute non-conformanceat one plant. We have been making improvements regardingthese matters and sharing details with other plants.
We continued to conduct internal audits under themutual, interdivisional audit system. We strived to upgrade
our auditing capabilities by organizing audit teams with thedual goals of fostering the development of auditors andincreasing audit efficiencies. In the area of audits, our focus
was placed on environmental policy management and onsite environmental management, and we clarified how mucheach business division contributes to overall environmental
management and checked if there are any environmental
risks in each division.

Establishing a Low-Carbon Emission Society
We position the curbing of global warming as our most crucial environmental task. We have been working to
reduce CO2 emissions in our global business activities and at the same time accelerate our efforts to develop
more environment-friendly products.

	Efforts for Reducing CO2 Emissions

Our Approach
For Toyota Industries, dealing with global warming is
not just a “risk.” It also presents “opportunities” in doing
business to both differentiate ourselves by leveraging ourtechnology-based product appeal and conduct ecoconscious production activities.
In our aspirations in 2050, we set a goal ofestablishing a zero CO2 emissions society on a global
basis and have been making efforts in various fields. In
the area of product development, our focus includes
electrification and increasing the fuel efficiency ofengines. In production activities, promoting thoroughenergy savings and utilizing renewable energy andhydrogen are the two pillars of our activities. As specificefforts, we will adopt solar and other renewable energy
sources and effectively utilize hydrogen while thoroughly
eliminating wasteful use of energy in production
processes and increasing the efficient use of energy.

Summary CO2 Emissions (Production Activities)
FY2020 Results

The Higashiura Plant, a compressor production base in
Aichi Prefecture, has been promoting measures to reduce
CO2 emissions from the drying and baking process, which
consumes a large amount of energy.
In the process, it is important to keep the thermal
processing equipment at an even temperature. This causes
the wasteful use of energy as it requires the same amountof energy even if there is a drop in production volume. In
response, the plant started sharing a drying and baking
process between two lines manufacturing different products
and successfully increased energy efficiency.
The drying and baking process also requires a large
amount of energy to restore the temperature of theequipment once it has stopped. In order to prevent theirregular shutdown of the equipment, the plant adopted
multifaceted measures, such as preventing product line
sorting errors by installing a sensor after the baking process
and eliminating bottlenecks by making the conveyor line
straight.
These measures enabled the plant to reduce its annual
CO2 emissions by about 298 tons.
After Improvement
Sharing

Total emissions (non-consolidated)

14
28% reduction (vs FY06 level)

FY21 target:

10% reduction

Line 1

Washing

Painting

Drying Baking

Line 2

Washing

Painting

Drying Baking

Line sorting
sensor(vs FY06 level)

Emission volume per unit of production (global)% reduction (vs FY06 level)

FY21 target:

26% reduction(vs FY06 level)

Suspended

Under the Sixth Plan, we are working toward achieving
fiscal 2021 targets of reducing total non-consolidated CO2
emissions by 10% and global emission volume per unit ofproduction by 26%, both from the fiscal 2006 level.

61Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Environmental Initiatives

T O PI C

Iwama Loom Works Receiving a DirectorGeneral of the Chubu Bureau of Economy,
Trade and Industry Award as an Excellent
Energy-Saving Business Operator
In February 2019, Iwama Loom Works, Ltd., a subsidiary
manufacturing compressor parts in Aichi Prefecture, wasrecognized for its proactive energy-saving efforts andoutstanding outcome and received a Director-General of
the Chubu Bureau of Economy, Trade and Industry Award
as a business operator conducting excellent energy
management. The company presented details of its efforts
at the Symposium on the Rational Use of Energy hosted
by the bureau in January 2020.
Iwama Loom Works has been making steady andingenious energy-saving efforts, such as the promotion ofenergy just-in-time (JIT) activities that visualize and reduce
the wasteful use of energy and creation of a non-powered
karakuri mechanical pump for the recovery of liquid waste.

Yuu Sato
Group leader
Safety and Environment Group
General Affairs Department
Iwama Loom Works, Ltd.
(As of March 31, 2020)

Because gaining the understanding and cooperationof the Manufacturing Department was essential
in promoting our activities, we worked to build a
relationship of trust with them and proceeded while
checking each step together. We also devised a way
to visualize the outcome through such measures
as showing how much money we have saved byconserving energy.

Establishing a Recycling-Based SocietyWith a view to establishing a recycling-based society, we have been striving to reduce waste and theconsumption of water and other resources.

Our Approach (Waste)
Mass consumption, if continued on the back of the
expanding world population and economic growth, will
eventually deplete natural resources. Toyota Industries
believes it is essential to promote 3R (reduce, reuse andrecycle) design for effective resource utilization and therecycling of waste as resources.
We set a goal of minimizing the use of resourcesin our aspirations in 2050. Accordingly, we have been
making various efforts, including extending the life ofcomponents as well as reducing their size and weight in
the area of product development. In production activities,
implementing measures to reduce resource consumption
at the source, ensuring the maximum resource recycling
within a plant and reducing waste by using leading-edge
technologies are the three pillars of our activities.

Waste Generation Volume (Production

Summary Activities)

Waste generation volume per unit of production(non-consolidated)

44

FY21 target:% reduction (vs FY06 level)

29% reduction(vs FY06 level)

Waste generation volume per unit of production(non-consolidated/consolidated subsidiaries in Japan)

44

FY21 target:% reduction (vs FY06 level)

27% reduction(vs FY06 level)

Under the Sixth Plan, we are working toward achieving the
fiscal 2021 targets of reducing waste generation volume perunit of production compared with the fiscal 2006 level by
29% on a non-consolidated basis and by 27% for Toyota
Industries and its consolidated subsidiaries in Japan.
The Toyota Industries Group seeks to reduce ocean plastic
pollution by making improvements in its business activities
and encouraging behavior change among employees.
Vanderlande Industries Holding B.V., a subsidiary engaging
in the logistic solutions business in the Netherlands, changed
the packing tape used in one of its warehouses from plastic
to paper and successfully achieved a reduction in the use ofplastic tape equivalent to about 30,000 meters per year.

Toyota Industries Report 2020

Our Approach (Water Resources)
Water is the basis of all life on the Earth and is an
irreplaceable and valuable resource. Every year, however,
we have been witnessing the increasingly severe impactsof droughts, floods and other natural disasters resulting
from climate change as well as shortages in drinking
water and agricultural water caused by the growth in
the world’s population. Many of the processes of Toyota
Industries use water for washing products and in thepainting process, and we regard the water supply crunch
caused by climate change and population growth as asignificant risk to our business activities.
In our aspirations in 2050, we set a goal ofminimizing the environmental impact on water resources.
We have identified the status of water risks at Toyota
Industries and consolidated subsidiaries and havebeen undertaking activities matched to the respective
conditions with a focus on reducing water intake,promoting recycling and purifying wastewater.

	Efforts for Recycling Water and Reducing
Water Intake
Each production base of Toyota Industries has been making
various efforts to promote the recycling of water andreduction of water intake.
For example, Toyota Industry (Kunshan) Co., Ltd. (TIK),
a subsidiary manufacturing lift trucks and foundry parts in
China, has implemented a variety of measures and achieved
zero wastewater from plant production processes. These
measures include purifying and reusing wastewater frompainting processes and installing evaporative concentrationequipment and reverse osmosis (RO) membranes to purify
wastewater for reuse and to reduce wastewater discharge.
TIK intends to maintain zero wastewater and help reduce
the environmental impact on public waters while continuously
working to reduce water intake.
Flow of Reusing Wastewater from Production Processes
Reusing (recycling)
Evaporative
concentration Biotreatment by RO membraneprocessing microorganisms

Oil and water
separation

Plant

Discharge
Waste (oil sludge)
What isan RO
membrane?

Waste (concentrated liquid waste)

Only water molecules
go through themembrane.

Water molecules
Contaminants(bacteria, heavy metals, etc.)

FY2020 Results	Efforts for Reducing the Use of Plastics

62

Additionally, Toyota
Material Handling
Manufacturing Italy (TMHMI),a subsidiary manufacturing
materials handling equipment
in Italy, installed water
dispensers at its production
sites in the summer of 2019
Employees holding their personal bottles
and gave away reusable
water bottles to employees, thereby promoting the reductionof PET bottles. The initiative was expanded in November
2019 to include its offices.

Reducing Environmental Risk and Establishing a Society inHarmony with Nature
We have been making efforts to reduce the use of substances of concern while carefully monitoring the latest
trends in environmental laws and regulations on a global basis. At the same time, we have been promoting
activities for the conservation of biodiversity toward realizing a society in harmony with nature.

Our Approach (Conservation of Biodiversity)
Deforestation is now proceeding in various parts of theworld, causing the fragmentation of the habitats of livingorganisms. In order for humankind to live in harmony withnature, it is essential to protect nature in each region.
In our aspirations in 2050, we set a goal ofgenerating a positive influence on biodiversity andhave been conducting various business activities
while continuously paying attention to their impact
on the natural environment. We have also formulated
the biodiversity policy and been promoting initiatives
accordingly. The policy clearly stipulates that we seek
to reduce the impact of our business activities on

biodiversity and work with local communities for theconservation of biodiversity.

	Creating an Animal Path to Improve Natural
Habitats of Living Organisms
In recent years, we have found that foxes are living in
the wooded area surrounding the Higashiura Plant in
Aichi Prefecture. But because there is not a large enoughhabitat, many were fatally involved in traffic accidents on
the neighboring roads. To provide a safe passage between
these wooded areas, Toyota Industries created an animal
path within the plant premises and has been checking the
inhabiting status. Since observing a fox on the animal path63

Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Environmental Initiatives

for the first time six months after its creation, we have been
regularly seeing foxes using the path. We will continue tomonitor the status while implementing additional measures asnecessary to create a better environment.

Foxes using the animal path	Chita Peninsula Ecological Network ForumAs part of efforts to conserve biodiversity, Toyota Industries
collaborates in an initiative of the Aichi prefectural government
to promote the development of ecological networks within
the prefecture.
In fiscal 2012, we joined the Chita Peninsula Ecological
Network Council and have since been carrying out activities
linked to the local natural environment while working withvarious concerned parties, including local governments,
companies, NPOs, expert bodies and students.
At the Chita Peninsula
Ecological Network Forum
held in December 2019
under the theme of “theday when foxes comeback,” we exchanged
views with participants on
Chita Peninsula Ecological Network Forumthe status of Japanese
red foxes once declared
regionally extinct and conducted a presentation on our animal
path initiative. We will continue to collaborate with local
communities and proactively undertake activities to expand
ecological networks.

	Joint Initiative of Toyota Group Companies
to Conserve Endangered Bird Species in the
Kinuura Bay Area
Under the Sixth Plan, we formulated a plan to connect
green zones by undertaking activities for the conservationof biodiversity throughout the Toyota Industries Group. Each
plant of Toyota Industries has been collaborating with various
concerned parties to carry out initiatives matched to the local
characteristics.
Under the guidance of experts, the Higashichita Plant, anengine production base in
Aichi Prefecture, has beenworking with other Toyota
Group companies torestore Kinuura Bay to its
original state by protecting
endangered bird species
in its coastal area. Their
Plant-wide bird survey
at the Higashichita Plant
efforts in the future will

64

Toyota Industries Report 2020

focus on creating a natural environment that has a constant
supply of fresh water, which is essential for living organisms,
and is inhabited by insects the birds feed on.

	Cooperating with an NPO to Provide
Environmental Education to Children
Toyota Material Handling Mercosur Indústria e Comércio deEquipamentos Ltda (TMHM), a subsidiary manufacturing
materials handling equipment in Brazil, has been carrying out
environmental enlightenment activities both in and outside thecompany.
In August 2019, TMHM provided environmental education
to children in cooperation with the NPO Casa do Caminho.
At the event, children received a lecture on air pollution andglobal warming and talked about how these two issues
impact their daily lives and what they can do to prevent them.
To increase the children’s environmental awareness,
TMHM, together with the children, created flower pots fromused PET bottles and planted seedlings using these pots.

Our Approach (Substances of Concern)
Currently, air pollution by chemical substances has
become a global issue having equal importance as
global warming. As such, countries around the world
are adopting more stringent environmental regulations
each year. How Toyota Industries responds to theseregulations will have a significant impact on the businessactivities we undertake in each country.
Based on this perception, we have been taking aforward-looking approach, anticipating fuel efficiency
and emissions regulations to be enforced by eachcountry and region, and promoting product development
accordingly. In production activities, we have beenworking to reduce emissions of volatile organic
compounds (VOC), which are causal substances ofphotochemical oxidants that generate smog.

Summary VOC Emissions (Production Activities)
FY2020 Results
Emissions per unit of production(non-consolidated/automobile body)36% reduction (vs FY06 level)

FY21 target:

36% reduction(vs FY06 level)

Under the Sixth Plan, we set a target of reducing emission
volume per unit of production for VOC from the automobile
body painting process by 36% from the fiscal 2006 level
and have been striving to reduce VOC emissions. In fiscal
2020, we continued our efforts to increase the recovery rateand enhance the maintenance and management of thinner.
Consequently, we were able to cut down emission volume
per unit of production in fiscal 2020 by 36%.

Environmental Management
Toyota Industries proactively engages in initiatives to reduce environmental risk and discloses various
environmental information.

	Status of Compliance with Environmental
Laws
Environmental education to children provided in cooperation with an NPO

	TMHMF’s Initiative for the Conservation of
Biodiversity
Toyota Material Handling Manufacturing France SAS(TMHMF), a subsidiary manufacturing materials handlingequipment in France, has been conducting activities tocontribute to the conservation of biodiversity.
In September 2019, TMHMF set up an eco-farm andstarted raising Ouessant, an endangered sheep breed.
The farm is protecting the rare breed while saving energy
for operating mowing machines by letting the sheep grazeon the grass. The farm also provides a petting zone for
employees, which has served to raise their awareness of
biodiversity and increase communication among them.
As another effort to conserve biodiversity, TMHMF held aphoto contest on the theme of biodiversity in June 2019.

With an eye to minimizing environmental risks to local
communities, the Toyota Industries Group is striving toprevent violations of environment-related laws. Such initiatives
include taking measures against the recurrence of potentiallyserious near-accidents that may result in legal violations andperforming environmental risk inspections at its plants.
In fiscal 2020, there was one case of violation of airrelated laws at one of our consolidated subsidiaries outside
Japan. We have thoroughly implemented necessary
countermeasures and shared relevant information within
Toyota Industries and with other Group companies to preventa similar incidence throughout the Group.

	Soil and Groundwater Pollution
Countermeasures
Toyota Industries carries out surveys and purification ofsoil and groundwater contaminated from the past use oftrichloroethylene and other substances of concern. We
regularly report the survey results to local government
authorities and provide information at local community
meetings. As measures to prevent 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.

	Conducting Environmental Risk Inspections
at Consolidated Subsidiaries in Japan
Ouessant, an endangered sheep breed

Photo contest
on the theme of biodiversity

In addition to our own production bases, we are promoting
activities to reduce environmental risks at our manufacturingsubsidiaries in Japan.

We again conducted genchi genbutsu (go and see foryourself) environmental risk inspections at such subsidiaries
in fiscal 2020 to check facilities on their premises, theboundaries of their premises, discharge outlets and waste
storage sites and confirmed that they were managed well.
We will continue to monitor the status of their responses
to the identified issues and conduct risk inspections at our
subsidiaries on an ongoing basis.

	Responding to More Stringent
Environmental Regulations in China
Toyota Industries’ production bases in China manufacture
various products, including materials handling equipment, carair-conditioning compressors and foundry parts.
In recent years, China has been making frequent revisions
to its environmental laws on air and water quality, tightening
regulations with each revision. We regard a violation of theseenvironmental laws as a business continuity risk to the
Toyota Industries Group, as it may entail the suspension of
production or other penalties, which in turn will directly leadto a disruption of our supply chain and damage our brandimage.
In order to ensure compliance with environmental laws at
our bases in China, in September 2019 we started reinforcing
environmental management and support in the country, with
Toyota Industries Management (China) Co., Ltd. (TIMC) taking
the lead.
Specific efforts include providing updates on revisions
to environmental laws, checking the status of compliance ateach base and providing support for improvement. We will
also promote mutual improvement by sharing information andencouraging communication among the bases.

65

Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information

Environmental Initiatives

In December 2019, we held an environmental liaison
meeting of the Toyota Industries Group’s bases in China
at Toyota Industry (Kunshan) Co., Ltd. (TIK). During themeeting, environmental officers from these bases and Toyota
Industries shared the Group’s environmental action policy inChina, gave briefings on the latest updates on the country’s
legal trends and exchanged views. As part of this meeting, an
on-site inspection was also conducted at TIK.
We will continue tocarry out appropriate
environmental management
and support so as toensure compliance withenvironmental laws andreduce any businessOn-site inspection conducted
continuity risk at our bases
as part of the liaison meeting in China
in China.

autonomous activities of each company.
We will augment our environmental management byextending the scope of RISE and further solidifying our supply
chain network.
Environmental Data Aggregation System

ReportingdataCollecting
information

Aggregating
data

Environment-related
departments of Toyota Industries	Partnering with WIPO GREEN
We became a partner of WIPO GREEN, a marketplace
to spur innovation and diffusion of green technology.
The platform is run by the World Intellectual Property
Organization (WIPO), a specialized agency of the United
Nations, to support global efforts to achieve the Sustainable
Development Goals (SDGs).
As a WIPO GREEN partner, we have registered in the
database patents for our plastic glazing (PG) that contributes
to higher fuel efficiency through the reduction of vehicle
weight, carbon fiber reinforced plastic (CFRP) and solar
heat collection tube used in thegeneration of renewable energy.
We will continue to moveahead with our efforts related
to environmental products andtechnologies and contribute to therealization of a sustainable society.

	Leveraging IT to Augment Environmental
Management
With the dual aims of improving environmental performanceassociated with business activities and fulfilling our
information disclosure responsibility, the Toyota Industries
Group has been collecting environmental data of Toyota
Industries and its consolidated subsidiaries in and outside
Japan. In fiscal 2020, we introduced an environmental data
aggregation system to raise the efficiency of data collection
and the accuracy of the collected data. We call the systemby the nickname RISE (Reporting system for Improvementin Sustainability Engagement). The name embraces ouraspiration to contribute to a sustainable society and reinforce
our environmental response.
The use of RISE to centrally manage the environmental
data of Group companies
has enabled us to accurately
identify the environmental
impact and trends in theentire Toyota Industries
Group. The promotionof information sharing
throughout the Group has
Briefing session for consolidated
subsidiaries
also led to more active,

66

Toyota Industries Report 2020

Providinginformation

	Verification by a Third Party
Toyota Industries obtains third party verification in order toincrease the credibility of its data on energy-derived CO2
emissions, waste generation volume, water consumption andwastewater discharge.
We will continue to utilize this third party verificationin making continuous improvements in our environmental
activities and disclose data to our stakeholders in a moretransparent manner.
Details of verification and theverification statement of thethird party organization areavailable at our Website.

Web
Link to details andverification statement.

	External Evaluations of Toyota Industries’
Environmental Activities
External Environmental Evaluations
Toyota Industries fosters environmental communication with
our stakeholders through proactive disclosure of environmental
information.
Since fiscal 2015, we have been participating in the
Ministry of the Environment’s project for the establishmentof a framework for disclosure of environmental informationand examining the ideal way to disclose our environmental
information. We will continue to upgrade our method of
disclosure and contents to be disclosed.

Selected as an A-List
Company in CDP Survey
on Climate Change for Two
Consecutive Years
Toyota Industries was selected for
the A List for two consecutive years
in a survey conducted by CDP on climate change
as a company making especially outstanding efforts
to reduce greenhouse gas emissions and mitigate
climate change. The Toyota Industries Group definedits aspirations in 2050 in March 2016, and based onthese aspirations, formulated the Sixth Environmental
Action Plan, a five-year plan for the period from fiscal
2017 to fiscal 2021. Our proactive activities under
the plan, particularly the tandem efforts to develop
products with high environmental performance andreduce CO2 emissions from production activities, haveresulted in the selection.
We will continue to tackle climate change as
one of our important tasks and contribute to therealization of a sustainable society through our global
environmental conservation activities.

External Environmental Awards
Toyota Industries’ environmental activities to date have beenhighly acclaimed by external organizations.

Won a Minister of Economy,
Trade and Industry Award in
the 2019 Energy Conservation
Grand Prize
A project of the Nagakusa Plant in Aichi
Prefecture to save energy in the drying
process of vehicle painting won a
Minister of Economy, Trade andIndustry (METI) Award in the Industrial
Field, which is the highest level award
in the 2019 Energy Conservation Grand Prize
program (Best Practice Category) run by the Energy
Conservation Center, Japan. This award program
recognizes outstanding energy-saving products andenergy-saving efforts of business operators orbusiness sites. It was the first METI Award Toyota
Industries has received under the program.

List of External Environmental Evaluations

Evaluation organizations

Fiscal 2020

CDP climate changeA

CDP water security

A-

Raymond Winning a Green Supply Chain
AwardIn December 2019, The Raymond Corporation,a subsidiary manufacturing materials handlingequipment in North America, received a Green Supply
Chain Award from Supply & Demand Chain Executive
magazine. The award recognizes companies making
sustainability a core part of their corporate strategy
and carrying out environmental activities. Raymondreceived the award for its efforts to save energy byvisualizing energy consumption and automaticallyshutting down air conditioners when not needed, as
well as efforts to reduce water consumption, reusewater and recycle packaging
materials.
Raymond will proceedwith process improvements
throughout its businessactivities toward therealization of a sustainable
society.

TO P IC

EcoVadis*
TMHE Group Receiving the Highest“Platinum” Rating
Toyota Material Handling Europe AB (TMHE), a
consolidated subsidiary overseeing the materials
handling equipment business in Europe, received
the highest “Platinum” rating from EcoVadis in
its corporate sustainability survey. The ratingcorresponds to the top 1% group of the companies
that have been evaluated.
The TMHE Group has formulated an energy
policy to achieve zero energy muda and has been
engaging in activities based on high sustainability
targets. The Group has been making outstanding
progress, with one of its manufacturing companies
achieving a zero CO2 emissions plant in 2019. (See
Special Feature on the Environment on pages 56–57
for details.) The rating was given in recognition of suchexcellent performance and transparency in information
disclosure. TMHE willcontinue to undertake
business activities
and provide products
and services in asustainability-conscious
manner.
* An international organization that
evaluates the sustainability ofsupply chain companies

Members of the Production Engineering Departmentin the Vehicle Division

67Company Introduction

Corporate Information

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information
Directors, Audit & Supervisory Board Members,
Senior Executive Officers and Executive Officers

Directors, Audit & Supervisory Board Members, Senior Executive Officers and Executive Officers — P68–69 Major Bases — P70–71 Investor Information — P72

Directors, Audit & Supervisory Board Members,
Senior Executive Officers and Executive Officers(As of June 30, 2020)

Directors
Chairman

Tetsuro Toyoda

Executive Vice
President

Kazue Sasaki

Director

Yojiro Mizuno

Outside Director(Independent)

Shuzo Sumi

Outside Director

Mitsuhisa Kato

68

Toyota Industries Report 2020

Audit & Supervisory Board Members
Apr. 1970
Feb. 1991
Jun. 1991
Jun. 1997
Jun. 1999
Jun. 2002
Jun. 2005
Jun. 2013

Joined Toyota Motor Sales Co., Ltd.
Vice President of Toyota Motor Sales, U.S.A., Inc.
Director of Toyota Industries Corporation
Managing Director
Senior Managing Director
Executive Vice President
President
Chairman (current)

Apr. 1977
Jun. 2003
Jun. 2006
Jun. 2008
Jun. 2010
Jun. 2011
Jun. 2013

Joined Toyota Industries Corporation
Director
Managing Officer
Senior Managing Officer
Director
Senior Managing Director
Executive Vice President (current)

Apr. 1983
Jun. 2010
Jun. 2016
Jun. 2018
Jun. 2019

Joined Toyota Industries Corporation
Managing Officer
Senior Managing Officer
Director and Senior Managing Officer
Director and Senior Executive Officer (current)

Apr. 1970 Joined The Tokio Marine & Fire Insurance Co., Ltd.
(Tokio Marine)
Jun. 2000 Director and Chief Representative in London of Tokio Marine
Jun. 2002 Managing Director of Tokio Marine
Oct. 2004 Managing Director of Tokio Marine & Nichido Fire InsuranceCo., Ltd. (Tokio Marine & Nichido)
Jun. 2005 Senior Managing Director of Tokio Marine & Nichido
Jun. 2007 President and Chief Executive Officer of Tokio Marine &NichidoJun. 2007 President and Chief Executive Officer of Tokio Marine
Holdings, Inc. (Tokio Marine Holdings)
Jun. 2013 Chairman of the Board of Tokio Marine & Nichido
Jun. 2013 Chairman of the Board of Tokio Marine Holdings
Jun. 2014 Director of Toyota Industries Corporation (current)
Apr. 2016 Counselor of Tokio Marine & Nichido (current)
Jun. 2019 Retired as Chairman of the Board of Tokio Marine Holdings
Apr. 1975
Jun. 2004
Jun. 2006
Jun. 2006
Jun. 2007
Jun. 2010
Jun. 2010
Jun. 2011
Jun. 2012
Jun. 2015
Apr. 2016
Apr. 2017
Jun. 2017
Jun. 2018
Jun. 2020
Jun. 2020

Joined Toyota Motor Co., Ltd.
Managing Officer of Toyota Motor Corporation (TMC)
President of Toyota Technocraft Co., Ltd.
Advisor of TMC
Retired as Advisor of TMC
Retired as President of Toyota Technocraft
Senior Managing Director of TMC
Senior Managing Officer of TMC
Executive Vice President of TMC
Director of Toyota Industries Corporation (current)
Chairman of Toyota Central R&D Labs., Inc.
Director of TMC
Senior Advisor of TMC
Retired as Senior Advisor of TMC
Retired as Chairman of Toyota Central R&D Labs.
Advisor of Toyota Central R&D Labs. (current)

President

Akira Onishi

Executive Vice
President

Takuo Sasaki

Director

Yuji Ishizaki

Outside Director(Independent)

Kenichiro
Yamanishi

Apr. 1981
Jun. 2005
Jun. 2006
Jun. 2008
Jun. 2010
Jun. 2013

Joined Toyota Industries Corporation
Director
Managing Officer
Senior Managing Officer
Senior Managing Director
President (current)

Apr. 1977
Full-Time Audit &Supervisory Board Member Jun. 2005
Shinya Furukawa Jun. 2006
Jun. 2008
Jun. 2010
Jun. 2015
Jun. 2018

Apr. 1980
Jun. 2009
Jun. 2011
Jun. 2011
Apr. 2013
Apr. 2015
Jun. 2015
Jun. 2016
Jun. 2018

Joined Toyota Motor Co., Ltd.
Managing Officer of Toyota Motor Corporation (TMC)
President of Toyota Financial Services Corporation
Advisor of TMC
Managing Officer of TMC
Advisor of Toyota Industries Corporation
Senior Managing Director
Director and Senior Managing Officer
Executive Vice President (current)

Outside Audit & Supervisory Apr. 1978 Joined Chubu Electric Power Co., Inc. (Chubu ElectricPower)
Board Member(Independent)
Jun. 2008 Director, Senior Managing Executive Officer and General
Manager of Corporate Planning & Strategy Div. of Chubu
Akihisa Mizuno
Electric PowerJun. 2009 Representative Director and Executive Vice President of
Chubu Electric Power
General Manager of Corporate Planning & Strategy Div.
and General Manager of Affiliated Business Planning &Development Dept.
Jun. 2010 President & Director of Chubu Electric PowerJun. 2015 Chairman of the Board of Directors of Chubu Electric
Power
Jun. 2016 Audit & Supervisory Board Member of Toyota Industries
Corporation (current)
Apr. 2020 Director & Advisor of Chubu Electric PowerJun. 2020 Advisor of Chubu Electric Power (current)

Apr. 1980
Jun. 2012
Jun. 2016
Jun. 2018
Jun. 2019

Joined Toyota Industries Corporation
Managing Officer
Senior Managing Officer
Director and Senior Managing Officer
Director and Senior Executive Officer (current)

Apr. 1975 Joined Mitsubishi Electric Corporation(Mitsubishi Electric)
Apr. 2006 Executive Officer of Mitsubishi Electric
Apr. 2008 Senior Executive Officer of Mitsubishi Electric
Apr. 2010 Representative Executive Officer and President &CEO of Mitsubishi Electric
Jun. 2010 Director, Representative Executive Officer andPresident & CEO of Mitsubishi Electric
Apr. 2014 Chairman of Mitsubishi Electric
Jun. 2015 Director of Toyota Industries Corporation (current)
Apr. 2018 Director and Executive Corporate Adviser of
Mitsubishi Electric
Jun. 2018 Executive Corporate Adviser of Mitsubishi Electric(current)

Joined Toyota Motor Sales Co., Ltd.
Director of Toyota Industries Corporation
Managing Officer
Senior Managing Officer
Senior Managing Director
Executive Vice President
Audit & Supervisory Board Member (current)

Apr. 1983 Joined Toyota Industries Corporation
Full-Time Audit &Supervisory Board Member Jun. 2016 General Manager of Accounting & Finance Dept.
Toru Watanabe Jan. 2017 Project General Manager of Accounting & Finance
Dept.
Jun. 2020 Audit & Supervisory Board Member (current)

Outside Audit & Supervisory Apr. 1977
Board Member
Jun. 2005(Independent)
Apr. 2011
Masanao Tomozoe Apr. 2011
Jun. 2012
May 2015
Jun. 2015
Jun. 2019
Jun. 2019

Joined Toyota Motor Sales Co., Ltd.
Managing Officer of Toyota Motor Corporation (TMC)
Senior Managing Officer of TMC
Senior Vice President of Toyota Motor North
America, Inc.
President and Representative Director of Toyota
Motor Sales & Marketing Corporation
Advisor of Central Japan International Airport
Company, Limited
President and CEO of Central Japan International
Airport
Audit & Supervisory Board Member of Toyota
Industries Corporation (current)
Advisor of Central Japan International Airport(current)

Senior Executive Officers
Yojiro Mizuno*

Yuji Ishizaki*

Masahiro Kawaguchi

Koichi Ito

Masanori Shirahama

Toshihiko Shimizu

Yasushi Kawai

Brett Wood

Hiroshi Matsumoto

Kota Otoshi

Kazunari Masuoka

			* Concurrently serving as directors

Executive Officers
Hiroaki Kayukawa
Hisashi Ichijo
Kenichi Onishi
Yoichiro Yamazaki
Haruhiko Kimata

Toru Inagawa
Nobutomo Yasui
Hiroshi Fukagawa
Keitaro Hara
Hiroshi Kobayashi

Norio Wakabayashi
Shunji Sugimoto
Norio Otake
Shinya Mizutani
Ken Suito

Hiroaki Matsuda
Hisanori Miyajima
Hiroya Akatsuka
Sotaro Kumazawa
Takehiko Oishi

69

Company Introduction

Strategies and Businesses Promotion of ESG Initiatives

Corporate Information
Major BasesWeb

Major Bases (Production, Regional Headquarters, etc.)

Link to the list of bases.

(As of June 30, 2020)■■ Japan■■ Europe
20 Toyota Material■

24 Vanderlande■Handling Europe AB

Industries Holding B.V.

President & CEO Ernesto Domínguez

Mjölby, Sweden
Business activities: European headquarters
for materials handling equipment production
and sales
Establishment: 1946

President & CEO Remo Brunschwiler
Veghel, The Netherlands
Business activities: Provision of logistics
solutions
Establishment: 1949
25 TD Deutsche■

21 Toyota Material Handling■

Manufacturing Sweden AB

Managing Director Kristian Björkman

Mjölby, Sweden
Business activities: Production ofmaterials handling equipment
Establishment: 1946

Klimakompressor GmbH

President Kazushige Murao

Bernsdorf, Germany
Business activities: Production ofcompressors
Establishment: 1998

1 Kariya Plant■

4 Nagakusa Plant■

8 Higashiura Plant■

Kariya-shi, Aichi
Main products: Textile machinery,compressors
Start of operations: 1927

Obu-shi, Aichi
Main products: Vehicles
Start of operations: 1967

Higashiura-cho, Chita-gun, Aichi
Main products: Compressor parts
Start of operations: 2002

5 Takahama Plant■

9 Anjo Plant■

Obu-shi, Aichi
Main products: Compressor parts
Start of operations: 1944

Takahama-shi, Aichi
Main products: Materials handlingequipment, materials handling systems
Start of operations: 1970

Anjo-shi, Aichi
Main products: Electronic equipment
Start of operations: 2007

3 Kyowa Plant■

6 Hekinan Plant■

2 Obu Plant■

Obu-shi, Aichi
Main products: Electronic equipment,
automotive press dies, production
facilities, engine parts
Start of operations: 1953

26 Uster■
22 Toyota Material Handling■

Manufacturing Italy S.p.A.

Managing Director Giorgio Polonio
Bologna, Italy
Business activities: Production ofmaterials handling equipment
Establishment: 1942

CEO Thomas Nasiou

Uster, Switzerland
Business activities: Production, sales andafter-sales services of quality measurement
instruments for fiber, yarn and fabric
Establishment: 1875

Manufacturing France SAS

Managing Director Philippe Mahé
Ancenis, France
Business activities: Production ofmaterials handling equipment
Establishment: 1995

7 Higashichita Plant■
11 Toyota Material Handling■North America, Inc.

President & CEO Brett Wood

Columbus, Indiana, U.S.A.
Business activities: U.S. headquarters formaterials handling equipment production
and sales
Establishment: 2010

3
■
4■
2
■
8■
1
■
7■
5■
9
■
6
■

20 ■
21
■

12 Toyota Material■

Handling , Inc.

25
24 ■
■
23
26
■
■
22
■
31 ■
34
■
29 ■
30
■

17
12 ■
11 ■
■
14 ■
15
■
18
■
16
■

10
■

President & CEO Jeff Rufener
Columbus, Indiana, U.S.A.
Business activities: Production and salesof materials handling equipment
Establishment: 2020

13■

13 The Raymond Corporation
■

27 ■
28
■

CEO Mike Field

Greene, New York, U.S.A.
Business activities: Production, sales andafter-sales services of materials handlingequipment
Establishment: 192232■■■ Asia
India Private Limited

Managing Director Yoshimitsu Hayashi
Bangalore, India
Business activities: Production of diesel
enginesEstablishment: 201519■
29 Toyota Industry (Kunshan)■Co., Ltd.

President Keizo Hara
Kunshan, Jiangsu, China
Business activities: Production ofmaterials handling equipment andautomotive parts, etc.
Establishment: 1994

31 Yantai Shougang TD■

Automotive Compressor
Co., Ltd.

President Yasushi Watanabe
Yantai, Shandong, China
Business activities: Production ofcompressors
Establishment: 2012

14 Toyota Advanced Logistics■

North America, Inc.

President & CEO Mike Romano

Indianapolis, Indiana, U.S.A.
Business activities: U.S. headquarters forlogistics solutions
Establishment: 2017

15 Bastian Solutions, LLC■
CEO Mike Romano

Indianapolis, Indiana, U.S.A.
Business activities: Integration oflogistic systems
Establishment: 1952
16 Toyota Industries■

33■

27 Toyota Industries Engine■

Ageo-shi, Saitama
Business activities: Production, sales
and after-sales services of aerial work
platforms
Establishment: 1962■■ The Americas

Handa-shi, Aichi
Main products: Foundry parts,
diesel engines
Start of operations: 2000

Technologies AG

23 Toyota Material Handling■

Hekinan-shi, Aichi
Main products: Diesel engines,
gasoline engines
Start of operations: 1982

10 Aichi Corporation■
President Toshiya Yamagishi

33 Tailift Material Handling■

Taiwan Co., Ltd.

CEO Eric Lin

Taichung, Taiwan
Business activities: Production, sales andafter-sales services of materials handlingequipment
Establishment: 201419 Toyota Material Handling■

Mercosur Indústria e Comércio
de Equipamentos Ltda

President Hiroshi Kuriyama

São Paulo, Brazil
Business activities: Production, sales
and after-sales services of materials
handling equipment
Establishment: 2004

Commercial Finance, Inc.

President ＆ CEO Mark Taggart

Dallas, Texas, U.S.A.
Business activities: Sales financing formaterials handling equipment
Establishment: 201417 Michigan Automotive■Compressor, Inc.

President Hisashi Kusaba

Parma, Michigan, U.S.A.
Business activities: Production ofcompressors
Establishment: 1989
18 TD Automotive■Compressor Georgia, LLC

President Hiroto Ikeno
28 Kirloskar Toyota Textile■

Machinery Pvt. Ltd.

70

Toyota Industries Report 2020

30 TD Automotive Compressor■

Kunshan Co., Ltd.

32 P.T. TD Automotive■Compressor Indonesia

34 Global Power Co. Ltd.
■

(Tailift)

Managing Director Toshihiko Shimizu

President Akira Fujii

President Masaya Nakamura

President Amy Lin

Bangalore, India
Business activities: Production, sales andafter-sales services of textile machinery
Establishment: 1995

Kunshan, Jiangsu, China
Business activities: Production ofcompressors
Establishment: 2005

Bekasi, Indonesia
Business activities: Production ofcompressors
Establishment: 2011

Qingdao, Shandong, China
Business activities: Production, sales andafter-sales services of materials handlingequipment
Establishment: 2000

Pendergrass, Georgia, U.S.A.
Business activities: Production ofcompressors
Establishment: 2004

71

Investor Information(As of March 31, 2020)

Corporate Head Office

Stock Exchange Listings

TOYOTA INDUSTRIES CORPORATION
2-1, Toyoda-cho, Kariya-shi, Aichi, 448-8671, Japan
Telephone: +81-(0)566-22-2511
Facsimile: +81-(0)566-27-5650

Tokyo and Nagoya (Ticker Code: 6201)

Date of Establishment

Independent Accountant

November 18, 1926

Common Stock

PricewaterhouseCoopers Aarata LLC
Otemachi Park Building 1-1-1 Otemachi, Chiyoda-ku, Tokyo,
100-0004, Japan

No par value
Authorized: 1,100,000,000 shares
Issued:325,840,640 shares

Transfer Agent
Special Account Management Institution(including treasury stock)

Share unit:

Number of Shareholders
15,814

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

100 shares

Capital Stock80,462 million yen

Major Shareholders
Number of Shares Held(Thousands)

Name

Percentage of Total Shares in Issue(Except for Treasury Stock) (%)

Toyota Motor Corporation

76,60024.67

DENSO Corporation

29,647

9.55

Towa Real Estate Co., Ltd.

16,291

5.25

Toyota Tsusho Corporation

15,294

4.93

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

14,598

4.70

Japan Trustee Services Bank, Ltd. (Trust Account)

11,173

3.60

Nippon Life Insurance Company

6,580

2.12

Aisin Seiki Co., Ltd.

6,578

2.12

Aioi Nissay Dowa Insurance Co., Ltd.
NORTHERN TRUST CO. (AVFC) RE SILCHESTER INTERNATIONALINVESTORS INTERNATIONAL VALUE EQUITY TRUST
Total

4,903

1.58

4,512

1.45

186,180

59.96

Notes: 1.	Toyota Industries Corporation also holds 15,357 thousand shares of treasury stock but is excluded from the above list.
2. Shares held for the purpose of trust services of respective financial institutions are as follows:		 The Master Trust Bank of Japan, Ltd. (Trust Account)
14,598 (Thousands)
		 Japan Trustee Services Bank, Ltd. (Trust Account)
11,173 (Thousands)
		 NORTHERN TRUST CO. (AVFC) RE SILCHESTER INTERNATIONAL INVESTORS		 INTERNATIONAL VALUE EQUITY TRUST
4,512 (Thousands)

Distribution of Shares

0.7%
4.7%
6.2%
Japanese corporate entities
Japanese financial institutions

19.7%

48.3%

Foreign corporate entities and others
Individuals, etc.
Treasury stock

20.4%

72

Toyota Industries Report 2020

Japanese brokerages

Toyota Industries Report 2020

Toyota Industries Report
2-1, Toyoda-cho, Kariya-shi, Aichi 448-8671, Japan
Telephone: +81-(0)566-22-2511 Facsimile: +81-(0)566-27-5650
https://www.toyota-industries.com/
Year ended March 31, 2020

This report is printed on FSC™-certified paper that contributes to forest conservation
with ink derived from vegetables.
Printed in Japan