FY2011 2nd Quarter
Financial Results

Nov 1, 2010

I. Financial SummaryPerformance

FY 2011 2Q(Billion yen)

FY2010 2Q(6 months)

FY2011 2Q(6 months)

Net sales

627.5

729.8+102.3+16.3%

Operatingincome▲2.836.2+39.0-

Ordinary
income

4.2

38.3

+34.1

+800.1%

Net
income0.2

23.6+23.4-

Change1 /22

Dividends[Previous plan][Current plan]

50 yenFY20101525

Interim

1015Year-end

2030 yen

Dividends per share

30 yen25FY2011
forecast
2 /22

Performance

FY2011 Forecast(Billion yen)

FY2010FY2011
forecastNet sales

1,377.7

1,480.0

Operatingincome22.0

65.0+43.0 +195.4%

55.0

Ordinary
income31.7

70.0+38.3 +120.4%

60.0

Net
income▲26.2

41.0+67.2

33.0

Previousplan

Change+102.3+7.4% 1,450.0-3 /22

II. Company Policy for FY2011
and Our Initiatives

Company Policy for FY2011- Solidify defenses & Shift to offensive Continue to strengthen our corporate structure
while maintaining streamlined structure(Billion yen)

900

•Continue emergency profit
800
improvement activities
700
1. Sharp reduction of fixed costs 600
2. Accounting treatments of500
impairment loss on fixed assets 40
in FY2009 and FY2010
20(Divisions of car air-conditioning
compressor and materials
handling equipment)

Solidify defenses
Shift to offensive

Break-even sales

Net sales

Operating income

0-20-40
1H

2H

FY20091H

2H

FY20101H

FY2011Be attuned to market changes and seize business opportunities
1. Sales expansion by seizing recent market’s recovery
2. Initiatives for emerging markets and promotion of environmental
technology developments in line with keyword “3Es (Energy,environmental protection and ecological thinking)”
4 /22

III. Recent Improvements inBusiness PerformanceRecent Improvements
in Business Performance

Sales Units by Segment

Recent sales units increase of all segmentsby seizing market’s recovery(Thousand units)◆Vehicle◆Engine◆Car airconditioningcompressor◆Materials
handling
equipment◆Air-jet loom

9,400

69307
154
125

3.0

7,500

49

215

1.0

FY2010 2Q FY2011 2Q

FY2010 2Q FY2011 2Q

FY2010 2Q FY2011 2Q

FY2010 2Q FY2011 2Q

FY2010 2Q FY2011 2Q

5 /22

TICO Initiatives in Materials
Handling Equipment Business

Recent Improvements
in Business Performance

Aiming for increase of unit sales by seizing each markets’ recovery
MarketMarketTICOTICO initiatives
initiatives

JapanJapan•• Further
Further expand
expand sales
sales activities
activities forfor robust
robust industries
industries•• Promote
Promote solution
solution sales
salesNorthNorth
America
America•• Establish
Establish new
new company
company TMHNA,
TMHNA, Inc.
Inc. which
which controls
controls
production
production andand sales
sales•• Introduce
Introduce newnew electric
electric lift
lift trucks
trucks (2.0(2.0- toto 3.0-ton)
3.0-ton)EuropeEurope•• Expand
Expand andand enhanceenhance value
value chain
chain byby channel-integrated
channel-integrated
sales
sales network
network ofof TOYOTATOYOTA andand BTBT•• Bolster
Bolster sales
sales network
network inin growing
growing markets
markets(Eastern(Eastern Europe,Europe, etc.)
etc.)

China
China

•• Introduce
Introduce new
new internal-combustion
internal-combustion lift
lift truck
truck•• Strengthen
Strengthen andand expand
expand sales
sales network
network

OthersOthers•• Strengthen
Strengthen andand expand
expand sales
sales network
network inin emerging
emerging markets
markets(Latin(Latin America,America, India,India, SoutheastSoutheast Asia,Asia, etc.)
etc.)
6 /22

Recent Improvements
Sales Units of Materials
in Business Performance
Handling Equipment Business
Unit sales increased in all market areas by sales
expansion activities seizing each market’s recovery
and introduction of new models, etc.
(Thousand units)

Japan

North America
19111313

FY2010 2Q

FY2011 2Q

FY2010 2Q

Europe19Global

69

FY2011 2Q

49Others

20176

FY2010 2Q FY2011 2Q

FY2010 2Q

FY2011 2Q

FY2010 2Q

FY2011 2Q

7 /22

TICO Initiatives in Car Air-Conditioning Recent Improvements
in Business Performance
Compressor Business
New product developments focusing car makers’ needs bear fruitMarketMarketTICOTICO initiatives
initiativesJapanJapan•• Maximize
Maximize productproduct appeal
appeal andand expand
expand productproduct lineup
lineup ofofelectric
electric compressor
compressor•• Further
Further improve
improve energy-savingenergy-saving andand lightweight
lightweight technologies
technologies
ofof compressors
compressors forfor compact
compact cars
carsNorthNorth
America
America•• EnterEnter into
into newnew carcar models
models byby technicaltechnical sales
sales promotion
promotion
seizingseizing Big3’sBig3’s businessbusiness recoveryrecovery•• Further
Further improve
improve energy-savingenergy-saving technology
technology forfor large-sizelarge-size carcar
which
which retains
retains popularity
popularity

EuropeEurope•• Introduce
Introduce products
products toto German
German luxury
luxury car
car manufacturers
manufacturers
byby improving
improving noise-reduction
noise-reduction technology
technology•• Newly
Newly enter
enter into
into French
French compact
compact carcar manufacturers
manufacturers
byby leveraging
leveraging TICO’s
TICO’s energy-savingenergy-saving technology
technology

ChinaChina•• Expand
Expand sales
sales promotion
promotion activities
activities toto foreign-affiliatedforeign-affiliatedcar
car manufacturers
manufacturers

8 /22

Recent Improvements
Sales Units of Car Air-Conditioning
in Business Performance
Compressor Business
Unit sales increased in all market areas by recovery
of automobile market and aggressive technical sales
promotion(Thousand units)

Japan

North America

Total

3,130

1,720

2,130

2,080
9,400

FY2010 2Q

FY2011 2Q

Europe3,260

FY2010 2Q

FY2010 2Q

FY2011 2Q

7,500

Others3,490

FY2011 2Q

440650FY2010 2Q

FY2011 2Q

FY2010 2Q

FY2011 2Q

9 /22

IV. Business Initiatives for theComing Years- Initiatives for emerging markets- Promotion of environmental technology
developments in line with keyword “3Es”

TICO’s Initiatives to Increase Market Sharein China

Initiatives for
Emerging Markets

Car Air-conditioning Compressor
Sales units of automobile in China by price range(Thousand units)
25,000TargetMid-range-Electric type for EV/HV-Externally controlled variable-displacement
type for engine-driven vehicle

Low-end• Appeal fuel efficiency technologies
for mid-range models

High-end

20,00015,00010,0005,000• Enhance technical sales forhigh-end models-Compressor for compact car0091015(CY) Source: Company estimate- Increase local procurement ratio- Increase production efficiency- Shift to local production- Enhance technical supports

Materials Handling Equipment• Introduce new model “Z series”(in late Aug, 2010)-Local production andincreasing local procurement ratio-Achieve a good balance between
quality and narrowing down specand functions• Strengthen and expand
sales network-Strengthen and expand sales
operations focusing on large
market areas

2.0- to 3.0-ton
Internal Combustion
Counterbalanced Lift Truck

10 /22

Optimizing Supply Structure
Including Emerging Markets

Initiatives for
Emerging Markets

Materials Handling Equipment

Reduce exchange rate fluctuation risk
Shorten lead time from order to sales
Appropriately reflect each area’s needs for products
11 /22

IV. Business Initiatives for theComing Years- Initiatives for emerging markets- Promotion of environmental technology
developments in line with keyword “3Es”

Sales Expansion of Electric Compressor

Promotion of Environmental
Technology Developments

Car Air-conditioning Compressor• Capture growing HV, PHV and EV markets bydeveloping small, lightweight and high-efficiency products(Thousand units) 3,000

Sales units of vehicle equipped withelectric compressor (CY)

2,000

1,000

TICO’s sales units ofelectric compressor (FY)

0（CY/FY）
Source: Company estimate

05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16
Prius PHVFor PHV and EV・・・・・

BMW VW

Other thanToyota
For HV

Prius

ToyotaPorscheDaimler
Estima HV
Lexus LS600h

Kluger HVHarrier HV・・・・・

Prius SAI

Camry HV
Lexus
GS450hCrown HV

Lexus
HS250h・・・・・

Sales expansion in FY2011 1H

12 /22

TICO’s Technology and Sales Expansion

Promotion of Environmental
Technology Developments

Car Air-conditioning Compressor
Fixed-displacement type(rotary valve)(Thousand units)

Electric type(mass-production for HV)

25,000: World first
20,00015,00010,000

Variable-displacement type(one-way swash plate externallycontrolled type/ clutch less)
Variable-displacement type
(One-way swash plateinternally controlled type)（Plan）

18,80016,710Electrictype

Variable-displacement type
(One-Way Swash Plate )Fixed-displacement type(10-cylinder swash plate )Others

5,000

Fixed-displacement type(10-cylinder swash plate )0
81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 （FY）

13 /22

Enhancing Product Appeal of Lift Truck
by TICO’s Environmental Technology

Promotion of Environmental
Technology Developments

Materials Handling Equipment◆Electric lift truck
Further enhance the performance of key components(motor and controller, etc.)ÆIncrease operating time and improve driving and loading
performance<Main customers> Food industry and warehousing industry, etc.

◆Diesel-powered internal-combustion hybrid lift truck
Enhance mid- and large-size product lineup by taking advantage
of internal-combustion hybrid lift trucks(in addition to 3.5-ton, introduce 4.0- and 4.5-ton)
Advantage of internal-combustion hybrid lift truck• Achieve similar driving and loading performance asinternal-combustion lift truck• Reduce 50% of fuel consumption and CO2 emission• Increase operating time
(GENEO-HYBRID)<Main customers> Traffic industry, recycle business, paper industry, and lumbering industry, etc.

14 /22

V. Financial ResultsPerformance

FY 2011 2Q(Billion yen)
FY2010 2Q(6 months)

FY2011 2Q(6 months)

ChangeNet sales

627.5

729.8

102.3

16.3%

Operating income

(2.8)

36.2

39.0

-

Ordinary income

4.2

38.3

34.1

800.1%Net income

0.2

23.6

23.4

-

Net income
per share¥0.74¥76.02¥75.28-Dividends
per share

¥10

¥25

¥15-

Investments intangible assets

14.8

16.3

1.5

10.0%

Depreciation

35.9

29.9(6.0)(16.6%)

¥/US$

9589

(6)

-

¥/Euro

133

114

(19)

-

Exchange rate

15 /22

FY 2011 2Q(Billion yen)

As of March
31, 20010

FY2011 2Q

ChangeTotal assets

2,589.2

2,359.1(230.1)(8.9%)

Total net assets

1,104.9989.9(115.0)(10.4%)

Total net assets
per share¥3,390.02¥3,027.46(¥362.56)-

Equity ratio

40.8%40.0%--

Consolidated
subsidiaries

159159--16 /22

Segment Information

FY 2011 2Q(Billion yen [Operating Income])

 Net sales

FY2010 2Q (6 months)
FY2011 2Q (6 months)[18.6]

450

250

408.9
400
350

[1.1]

200

340.1

174.3

150

300
[11.7]

250

193.7

98.2

100

[(6.2)] 230.8

208.4
20050

1500

70.0

[1.9] [2.7]53.1 53.8

50[(1.4)]

6.90Automobile

Materials Logistics
handling
equipment

96.9

15.7 19.9
Vehicle10079.9

EngineCar airFoundry,
conditioning electronics
compressorparts[1.0] [1.5] [1.7]

18.5 18.8 17.6

Textilemachinery

Others17 /22

Unit sales

FY 2011 2Q/ FY2011 Forecast(Thousand units)
FY2011 forecast

FY2010 2Q(6 months)

FY2011 2Q(6 months)

ChangeVitz (Yaris)

61

95

RAV461

Current plan

ChangePrevious plan
（7/30）

34

206

57

197

57

(4)

103(31)

95

32(1)

6(2)

5Vehicle

125

154

29315

24297

Diesel

119

186

67371

85323Gasoline

9612125254

38262

215

307

92625

1235859,400 1,900

18,8002,090

18,500Mark X ZiOEngineCar airconditioning
compressor
Materials
handling
equipment
Air-jet loom

7,500
49

69

20150

39150

1.0

3.0

2.0

7.0

3.7

7.0
18 /22

38.3
(2.8)

Decrease in the net amount of
non-operating income

Decrease in expenses and others

Increase in raw material cost

Increase in labor cost

(4.9)

31.6

Decrease in depreciation

Cost reduction

4.2

Negative impact of exchange rate fluctuations

FY2011 2Q(6 months)

19 /22
Increase in sales volume
FY2010 2Q(6 months)

(2.5)
9.3

(8.2)
47.2

(Billion yen)

(2.9)
0.3
6.0

FY 2011 2Q

Change in Ordinary Income

Performance

FY2011 Forecast(Billion yen)

FY2010FY2011
forecast

Previousplan

ChangeNet sales

1,377.7

1,480.0

102.3

7.4%

1,450.0

Operatingincome

22.0

65.0

43.0

195.4%

55.0

Ordinary
income

31.7

70.0

38.3

120.4%

60.0

Net income(26.2)

41.0

67.2

-

33.0

Net income
per share(¥84.33)¥131.59¥215.92-¥105.92

Dividends
per share

¥30

¥50

¥20-

¥30

Investments intangible assets

26.940.0

13.1

48.3%

40.0

Depreciation

73.2

64.0(9.2)(12.6%)

65.0

¥/US$

9385(8)-90¥/Euro131112(19)-112

Exchange rate

20 /22

Segment Information

FY2011 Forecast(Billion yen [Operating Income])

 Net sales
900
800

FY2010FY2011450[23.6] 805.0

778.3

400

398.7

380.0

350

700

300
250

600
[(9.5)] 490.0

500

192.0 177.0 193.0
165.0

200
150

431.6

100

400

37.4 40.0500300

Vehicle

200

[5.2]

108.5 110.0
100[(1.8)]EngineCar airconditioning
compressor

Foundry,electronics
parts

[3.9]

20.840.0 38.3 35.00Automobile

Materials
handling
equipment

Logistics

TextilemachineryOthers

21 /22

Decrease in the net amount of
non-operating income
Increase in expenses and others

Increase in labor cost

Increase in raw material cost

Decrease in depreciation

29.0

Increase in sales volume

FY2011FY2010

Cost reduction

31.7

59.2

Negative impact of exchange rate fluctuations(16.2)

70.0(0.8) (4.7)
(3.5)
21.0

(5.4)
(6.5)

(Billion yen)

9.2

FY2011 Forecast

Change in Ordinary Income

22 /22

Cautionary Statement with Respect
to Forward-Looking Statements
This presentation contains projections of business results as well as statements regarding
business plans, forecasts, strategies, and other forward-looking statements that are not tobe taken as historical fact. Projections and forward-looking statements are based on thecurrent expectations and estimates of Toyota Industries and its Group companies. All
suchprojections

andforward-looking

statements

arebasedonmanagement’s

assumptions and beliefs derived from the information available to it at the time ofproducing this report and are not guarantees of future performance. You should also beaware that certain risks and uncertainties could cause the actual results of Toyota
Industries and its Group companies to differ materially from any projections or forwardlooking statements appearing in this report. These risks and uncertainties include, but are
not limited to, the following: 1) economic trends, 2) various competitive pressures,3) changes in relevant laws and regulations, and 4) fluctuations in exchange rates.