Survey of Businesses
12
14
23
24
26
30

At a GlanceMaterials Handling Equipment
Logistics
Car Air-Conditioning Compressor
Automobile
Textile Machinery

Toyota Industries Report 200811

Survey of Businesses

At a Glance
Automobile• Passenger vehicles• Diesel engines• Gasoline engines• Car air-conditioning compressors• Electronic components forautomobiles• Foundry parts• Stamping dies

Materials Handling
Equipment• Counterbalanced lift trucks• Warehouse trucks• Aerial work platforms• Automated storage and retrieval
systems• Automatic guided vehicles

Logistics• Land transportation services• Logistics planning• Operation of distribution centers• Cash collection and delivery andcash proceeds management• Secure storage, management,collection and delivery ofcorporate documents

Textile Machinery• Ring spinning frames• Roving frames• Air-jet looms

Others• Semiconductor package
substrates• Manufacturing equipment

12

Toyota Industries Report 2008

The Automobile Segment is Toyota Industries’ largest business segment and accounts for
48% of consolidated net sales. Within this segment, the Vehicle Business manufactures
the Vitz (Yaris outside Japan), RAV4 and Mark X ZiO under consignment from Toyota
Motor Corporation (TMC). The Engine Business produces diesel and gasoline engines
under consignment from TMC as well as engines for its own materials handling equipment.
Commanding the top global share, the Car Air-Conditioning Compressor Business develops
and produces fixed-displacement compressors and variable-displacement compressors. This
segment also produces foundry parts for engines and electronics devices for automobiles. In
fiscal 2008, net sales of the Automobile Segment were ¥969.2 billion and operating income
amounted to ¥41.5 billion.

The Materials Handling Equipment Segment develops, manufactures, sells and services
industrial vehicles such as lift trucks, warehouse trucks, shovel loaders and tow tractors in
addition to aerial work platforms, automated storage and retrieval systems and automatic
guided vehicles. Toyota Industries sells its materials handling equipment under the Toyota
L&F (Toyota Industrial Equipment outside Japan), BT, RAYMOND, CESAB and AICHI brands.
In fiscal 2008, net sales of the Materials Handling Equipment Segment amounted to ¥783.1
billion. Operating income totaled ¥39.8 billion.

In addition to engaging in truck cargo transport and warehousing operations, Toyota
Industries carries out the Logistics Solutions Business for handling all aspects of logistics to
help customers reduce their logistics costs. We are steadily growing this business by meeting
today’s demands such as proper response to J-SOX and by contributing to the optimizationof customers’ overall logistics operations. In fiscal 2008, net sales of the Logistics Segment
amounted to ¥117.5 billion. Operating income was ¥4.2 billion.

The Textile Machinery Segment produces and sells spinning and weaving machinery. Spinningmachinery includes the manufacture and sales of high-speed ring spinning frames androving frames while weaving machinery involves the manufacture and sales of air-jet looms,
which insert weft yarns using air, and other products. In fiscal 2008, net sales of the Textile
Machinery Segment were ¥66.2 billion and operating income totaled ¥4.2 billion.

The Others Segment includes newer businesses that we have entered relatively recently.
This segment includes TIBC Corporation, a joint venture with Ibiden Co., Ltd. that produces
semiconductor package substrates. In fiscal 2008, net sales of the Others Segment
amounted to ¥64.2 billion and operating income was ¥6.7 billion.

7SEU17Compressor

RAV4

Net Sales

Operating Income(¥ Billion)(¥ Billion)

1,000

80

800

Percentage of
Net Sales

60

600

48.5%

40
400
20

200

VD
Diesel engine

DC-DC converter

0
(FY)

06

07

08

0
(FY)

06

07

08

Net Sales

Operating Income(¥ Billion)(¥ Billion)

1,000

80

800

Percentage of
Net Sales

60

600
40

39.1%

400

GENEO (8FG25)
Internal combustion
counterbalanced lift truck

ReflexReach truck

SB12A
Truck mountaerial work platform

20

200
0
(FY)

06

07

08

08

Operating Income(¥ Billion)

8

40

2

20
0

5.9%

4

60

(FY)

Percentage of
Net Sales

680

Secure storage,
management, collection
and delivery of corporate
documents

07(¥ Billion)

120

Land transportation
services

06

Net Sales

100

Cash collection anddelivery and cash
proceeds management

0
(FY)

06

07

08

0
(FY)

06

07

08

Net Sales

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

100

6

80

Percentage of
Net Sales
3.3%

4

60
2
40
0

20

RX240
Ring spinning frame

JAT710Air-jet loom

0
(FY)

06

07

08

(2)
(FY)

06

07

08

Net Sales

Operating Income(¥ Billion)(¥ Billion)

8

100
80

Percentage of
Net Sales
3.2%

6

60
4
40

Wire bonding
package substrate

Flip chippackage substrate

2

20
0
(FY)

06

07

08

0
(FY)

06

07

08

Note: Segment net sales figures do not include intersegment transactions. However, segment operating income figures do include operating income (losses) arising from intersegment transactions.

Toyota Industries Report 200813

Survey of Businesses

Materials Handling Equipment
The World’s Leading Materials Handling Supplier—
Providing Customers with Optimum Solutions
Toyota Industries’ Materials Handling Equipment Business engages in thedevelopment, production, sales and services of industrial vehicles such ascounterbalanced lift trucks and warehouse equipment, as well as systems
for transportation, storage and retrieval of goods. We provide one-stop
shopping for products, services and added-value solutions that combine
cutting-edge technologies with materials handling expertise and a global
network presence. As a leading manufacturer of lift trucks and othermaterials handling equipment, Toyota Industries offers a product range that
includes the TOYOTA, BT and RAYMOND brands as well as AICHI, a top
brand in Japan for aerial work platforms.

Unit Sales of Materials Handling Equipment
Worldwide Marked a Record HighNet sales in the Materials Handling Equipment Business totaled¥783.1 billion, an increase of ¥15.9 billion over the fiscal year ended
March 2007. This was in spite of the figure for fiscal 2007 being
inflated as a result of including 15-month results of the BT Industries
Group that changed their fiscal year-end from December to March.
Excluding the effects of the change, net sales increased by ¥80.6
billion. Although lift truck sales decreased due to the slowdown in
the U.S. economy, overall unit sales of materials handling equipment
worldwide marked a record high, supported by robust markets in

Europe, Asia and Oceania. Aichi Corporation (Aichi) posted solid
sales due to an increase in demand from its principal customers in
the electric power industry.

Toyota Material Handling Group
Since becoming partners in 2000, Toyota Material Handling Company(TMHC) and the BT Industries Group continued to examine theirstrengths in the pursuit of synergies that include mutually supplying
respective brand products, sharing sales and production know-how,exchanging resources and jointly procuring products. Determining thetime was right for maximizing synergies via the full-scale integration

Organizational Chart of Toyota Material Handling Group

TMHG
Management Committee

Global Strategy, Optimum Resource Allocation, Global Management Control

TMHJ

TMHNA

TMHE

TMHI

TMHCN

Toyota Material HandlingJapan

Toyota Material HandlingNorth America

Toyota Material Handling
EuropeToyota Material HandlingInternational

Toyota Material
Handling China

R&D, Product Planning, Plant Operation, Information Systems/Information Technology,
Sub-Committees Quality,
Human Resources and FinanceIn managing and carrying out its operations, TMHG has divided its global markets into five regions—Japan, North America, Europe, International and China—and established a Board as thedecision-making body within each of these four regional organizations. A Management Committee composed of TMHG top management and representatives of each regional organization
oversees the formulation of strategies and manages TMHG as a whole. TMHG has also set up Sub-Committees comprising functional sections of each regional organization to handle suchprincipal functions as Quality, R&D, Product Planning, Plant Operation, Information Systems/Information Technology, Human Resources and Finance. Cross-sectional linkages permeating theentire organization facilitate the sharing of best practices and know-how cultivated regionally as well as globally.

14

Toyota Industries Report 2008

of operations, Toyota Material Handling Group (TMHG) became
operational from April 2006 as a new framework integrating TMHC
and the BT Industries Group.
We are currently pushing ahead with measures aimed atstrengthening our world leadership position as the “Undisputed No.
1” in the global industrial truck market, and each of these initiatives
already has begun to steadily yield important results. Examplesof the growing synergies already created include joint productdevelopment (e.g., three-wheel electric lift truck for the European
market), development of our own key components, strengtheningof our production structure through the horizontal deployment of
the Toyota Production System (TPS) throughout the entire group,

the reorganization of sales structures in a number of regions andenhanced development efficiency through the sharing of systems.
While the TOYOTA brand has achieved a solid position for
counterbalanced lift trucks not only in Japan but all over the world,
the BT brand is strong in the European market and the RAYMOND
brand is strong in North America. In its operations, TMHG intends
to firmly maintain its core TOYOTA, BT and RAYMOND brands whilesolidifying optimum brand and sales structures in each region toensure that the power of each brand is fully utilized.
Through the implementation of these measures, we plan to work
toward capturing an even greater global market share while aiming
for a further increase in profitability.

Business Activities in Fiscal 2008 by Geographic Region

Japanese Market
In calendar year 2007, unit sales in the lift truck market in Japandeclined slightly from the previous year.
Toyota Material Handling Japan (TMHJ) engaged in aggressive
sales and service activities aimed at increasing customer satisfaction
with its products. As a result, unit sales were on a par with theprevious fiscal year at 39,000 units, marking the 42nd consecutive
year that TMHJ has maintained the top-ranked position in theJapanese lift truck industry.
In November 2007, minor
modifications were made to 3.5to 5-ton GENEO-PRO and 5- to
8-ton G300 internal combustion
counterbalanced lift trucks,
culminating in upgradedversions with more market
appeal. Both of these models
are fitted with electronicallycontrolled engines and threeway catalytic mufflers as
GENEO-PROstandard equipment, whichmakes exhaust emissions
cleaner, improves fuelefficiency and increases power.
They also meet Japanese
special motor vehicle exhaustemission regulations for 2007.
The G300 boasts a new highpower design featuring thelatest common rail diesel
engine, making it ideal forcustomers requiring extra
G300
power, such as in harbor
freight operations.
TMHJ also reinforced the product value of its materials handlingsystems with the introduction of the Rack Sorter P, a unit-type

automated storage and retrieval system for pallets (1-ton models in
May 2007 and 1.5-ton and 2-ton models in October 2007). The newrack sorter features a function to automatically alert the user when it
is time to replace worn-out parts, which helps ensure stable operation
through preventive maintenance. It also includes a guidance display
function to assist in early recovery in case of breakdown.
Combining an extensive product lineup that encompasses lift
trucks, warehouse trucks, automated storage and retrieval systems,
automatic guided vehicles and aerial work platforms with anabundance of know-how, TMHJ aims to continue providing optimum
materials handling solutions for customers.

North American Market
In the North American market in 2007, actual sales decreased by 5%
due to a deceleration of the economy arising from the subprime loan
problem. Toyota Material Handling North America (TMHNA) engages
in the lift truck business through a 2-channel, 2-brand strategy.
The TOYOTA brand leverages its strength with a broad portfolio
of products that target the sit-down counterbalanced electric andinternal combustion engine-powered markets. The RAYMOND brandcapitalizes on its strength with a full line of electric trucks focusing on
warehousing and distribution markets. Both brands have a history of
extremely strong appeal and sales power that TMHNA will continue
to maximize in pursuing enhanced sales and service activities.
TOYOTA was the leading brand of lift trucks in North America
for the sixth straight year in 2007. Experts in the industry validated
Toyota’s delivery of products and services that exemplify quality,
durability and reliability. As an example, Modern Materials Handling/
Reed Research Group honored Toyota as having the leading lift truckin terms of quality and value for the fourth year in a row. Also, Toyota’s
new generation of engine-powered lift trucks (sold as the 8-Series inNorth America) were awarded the silver medal in Plant Engineeringmagazine’s annual “Product of the Year” ranking. Encouraged bysuch achievements, Toyota will continue to focus on raising customer
satisfaction through 2008 and beyond.
Raymond also introduced a number of new products, including

Toyota Industries Report 200815

Survey of Businesses

Materials Handling Equipment
Model 4100 and 4200 stand-up counterbalanced lift trucks, which
are designed for warehouse systems and other high-productivity
applications. Also introduced around the same time was the Model
4400 three-wheel, sit-down electric lift truck, which is ideal for heavyduty dock operations and higher-speed transport for supplying racksystems and moving picked orders. Among these, Plant Engineering
awarded Raymond’s Model 4200 its “2007 Product of the Year”
award. This prestigious award is given to products that rate thehighest compared with similar products of other companies.
In December 2007, Raymond released the industry’s broadest
range of new pallet trucks designed for extreme and corrosive
environments, specifically the Model 102XM and Model 8300 walkie
pallet trucks and Model 8400 end rider pallet truck.
TMHNA also is active in environmental protection and social
contribution activities. At the beginning of 2007, Toyota saw the
first full year of production of 8-Series lift trucks. In a partnershipannounced with the Arbor Day Foundation, Toyota pledged to planta tree for every 8-Series lift truck sold, symbolic of the environmental
accolades of the newly launched product. As a result, 20,000 trees
were planted in early 2008 to contribute to reforestation efforts inNorth America. Also, to aid in the recovery efforts for those affectedby the devastating fires that occurred in November 2007 in California,
TMHNA donated 13 Toyota lift trucks and hand pallet trucks, as wellas $55,000, to the American Red Cross. Through these activities andother initiatives, TMHNA will continue to be actively involved in efforts
to protect the environment and contribute to society.
At the end of fiscal 2008, the Raymond organization continued its
history of innovation by launching a three-year program for researchand development of hydrogen fuel cell technology. Raymond’s
Greene manufacturing facility is now a “living lab” for researching
the use of hydrogen fuel cell-powered Raymond lift trucks in actual
applications including an indoor, fast-fill hydrogen refueling system.
Raymond is the first North American lift truck company to embark onsuch research for fuel cells.
TMHNA also remains committed to continuous improvement of
its world-class manufacturing operations through the implementationof TPS at its facilities in Greene, New York; Muscatine, Iowa;
Columbus, Indiana; and Brantford, Ontario, Canada. This
implementation improves Toyota’s and Raymond’s already strong
reputation for product quality and reliability.

TMHE employs more than 4,800 highly trained service technicians
across Europe.

Multinational customers also benefit from excellent cooperation
between local key accounts teams and the TMHE European Key
Accounts team, ensuring optimum value and consistency in the
more than 30 countries where TMHE is active.
TMHE also enhanced its product offering, highlighted by thelaunch of the new generation of engine-powered lift trucks (sold as
the Toyota Tonero in Europe), for which production commenced in
September 2007. This range of 1.5- to 3.5-ton internal combustion
counterbalanced lift trucks addresses European customer needs interms of safety, productivity, durability, comfort and the environment.
The Tonero+ formula lets customers specify additional safety,
productivity, comfort and durability features to meet their specificbusiness requirements. The Toyota Tonero has been welcomed bycustomers and also won the “Prize for Environmentally Conscious
Design” at the Europack07 trade show in France. The Toyota Tonerois 99% recyclable and runs cleaner than the strict new European
exhaust emissions standards.

European Market
In 2007, the European market for industrial trucks continued to grow,led by continued strong growth in Central and Eastern Europe. Amid
this climate, Toyota Material Handling Europe (TMHE) significantly
increased unit sales to around 72,000 units compared with theprevious fiscal year.
In 2007, TMHE continued to implement and refine its new
business structure in many European markets, offering both
TOYOTA- and BT-brand trucks through one point of contact withthe customer. The integration of Toyota and BT operations at a
European level and in many European countries provides customers
with a stronger materials handling partner with a wider rangeof products, supported by high service levels and added-value
solutions.

16

Toyota Industries Report 2008

Toyota Tonero

In addition, TMHE introduced several new or updated warehouseequipment models. The new BT Opus OME100N and BT Opus
OME100NW order pickers provide safe, highly flexible and ergonomic
first-, second- and third-level order picking. The BT Reflex-M reachtruck and BT Veflex very narrow aisle (VNA) truck families were
updated to enhance truck performance and operator productivity.
The BT Lifter Silent hand pallet truck was also launched. Thirty
percent quieter than conventional hand pallet trucks, the BT Lifter
Silent is certified to meet strict noise standards for nighttime delivery
operations.
As a result of these activities, TMHE established a new sales
record for total unit sales of its three European brands: TOYOTA, BT
and CESAB.
These new and improved products, supported by innovative
services and solutions and delivered by a marketing and salesorganization that is closer than ever to the customer, provide TMHE
with an excellent foundation for its future success.

International and Chinese Markets
These markets include Asia, the Middle East, Oceania, Latin Americaand Africa. Strong economic expansion and ever-increasing demand
for materials handling equipment distinctly characterize many of thesemarkets. Toyota Material Handling International (TMHI) took steps tofurther develop and strengthen its sales and service networks in theseareas along with its ability to offer a full range of counterbalanced lift
trucks and warehouse trucks to the markets.
In India, new branches have been established throughout thecountry to improve
market coveragefor sales andservice operations.
Significant market
growth is fuelingan even stronger
conviction of theimportance of the
Toyota Industry (Kunshan) Co., Ltd.
Indian market.
In Brazil, TMHI
has initiated the integration of the sales network of TOYOTA and BT
brands to strengthen operations and provide customers with support
in all areas of materials handling.
In China, TMHI launched a sales dealer network to meet growing
demand in this prosperous market. Toyota Material Handling(Shanghai) Co., Ltd. have pursued a training process geared toward
members of its expanding national dealer network. The training will
ensure each dealer has a high level of product and materials handlingknowledge to ensure customer confidence and satisfaction. In the
beginning of 2008, lift truck production capacity at Toyota Industry(Kunshan) Co., Ltd. was also expanded to 5,000 units annually.

Looking Ahead

Japanese Market
The lift truck market in Japan in 2008 is projected to grow marginallyamid a weakening domestic economy.
Under such circumstances, competition among manufacturers is
expected to further intensify. Accordingly, TMHJ intends to enhance
the appeal of its products. Besides promoting differentiation fromcompetitors through a focus on strengthening the development of
key components such as engines, motors and hydraulic valves,
strenuous efforts will be made to lower costs through the global
standardization of key components developed in Japan.
The mainstay GENEO-B electric lift truck has been introduced
into the market in April 2008 after minor modifications to enhancesafety. In this model change, all aspects of safety have been
improved, with features such as a rear pillar assist grip (with a horn),which was included as standard equipment to ensure a stable driving
posture and excellent rearward vision when reversing. In addition tostronger engagement in the electric lift truck market, TMHJ aims toproactively pursue proposal-based and solution-based sales activities
that match customer needs.
From May 2008, TMHJ has begun manufacturing
counterweights, a key component of counterbalanced lift trucks, at
its subsidiary, Handa Casting Company, in Handa, Aichi Prefecture. In
addition, TMHJ has attempted to eliminate bottlenecks in production
processes to boost productivity at the Takahama Plant in Takahama,
Aichi Prefecture.
TMHJ will continue to promote the elimination of bottlenecks

in production processes and components in response to growing
demand for lift trucks worldwide. Meanwhile, to accommodate
fluctuations in demand at a regional level, Toyota Industries will pushahead with efforts to establish an optimum global production andsupply structure.

North American Market
Looking ahead, although the North American market is expected toremain challenging, TMHNA will dedicate resources to strengthen its
business platform and provide customers with innovative products
and services.
Having refined its vision “To retain our leadership as the mostsuccessful and respected materials handling solutions provider tocustomers,” TMHNA is now undertaking several new initiatives.
In the first half of fiscal
2009, Toyota has started
manufacturing TOYOTAbrand diesel tow tractors,
which were featured at
the Aviation Industry Expoin Dallas in March 2008,at its manufacturing site
Tow Tractor (02-2TDU25)
in Columbus, Indiana.
Producing these units in the United States allows TMHNA to be
more responsive to customers interested in the diesel tow tractor byconsiderably speeding up the delivery timeline.

Toyota Industries Report 200817

Survey of Businesses

Materials Handling Equipment
Toyota also will launch its new AC reach truck in late 2008 alongwith new internal combustion pneumatic models with increased
capacities of 22,000 to 35,000 lbs. The new reach truck will be
introduced at ProMat, the largest material handling trade show inNorth America, scheduled to be held in January 2009.
Toyota also is continuing its environmental stewardship programand commitment to the Arbor Day Foundation. Toyota will plant atree for every lift truck sold this year, which is estimated to result in an
additional 30,000 trees being planted in early 2009.
In 2008, Raymond will continue its commitment to innovationand technical leadership by enhancing what is already the mostcomprehensive electric lift truck portfolio in the industry. Raymondwill introduce the iWarehouse™ fleet optimization system for
warehouse and distribution center managers to collect and analyze
real-time lift truck data to maximize fleet productivity and reduce
costs. Warehouse managers can access this information throughthe Raymond Web portal to generate reports and benchmark lift
truck and operator productivity, detect lift truck issues before failuresoccur, reduce the risk of impacts and optimize lift truck capital andmaintenance costs.
Raymond’s 7000 Series Reach-Fork® truck, the industry-leading
solution for narrow aisle applications, will be further differentiated with
the introduction of an integrated laser option that will allow operatorsa quick and efficient way to store and retrieve goods at high levels
with low visibility. Raymond’s new truck models will be aimed ataddressing changing labor dynamics and improving operator
productivity in warehouse and distribution center applications.
Raymond will increase its focus on specific market segments
to ensure that R&D and marketing efforts are concentrated on
evolving and growing markets, such as the third party logistics (3PL)
market, which is expected to continue to flourish despite a sluggish
U.S. economy. Raymond will also focus on the green movement bycontinuing its evaluation of hydrogen fuel cell technology and otherenvironmentally friendly energy alternatives. Raymond, as a market
leader, will continue to develop relationships with suppliers of energy
alternatives in an effort to remain on the forefront of technology.

European Markets
The steady growth seen in Europe during the past two to three years
is expected to slow down in 2008, with demand in Eastern Europe
projected to remain stronger. In view of such expectations, overall
European demand for industrial trucks will likely remain relatively
stable at least for the coming year.
TMHE is now present in most European markets as one
comprehensive solutions provider with a network of wholly owned
sales and marketing companies, as well as independent distributors
and dealers offering innovative TMHE products. TMHE strives toenhance customer satisfaction through a comprehensive productrange based on TOYOTA counterbalanced lift trucks and BT
warehouse equipment, together with services and solutions toprovide trouble-free customer operations.
As a follow-up to introducing the Toyota Tonero in 2007, TMHE
has begun an ambitious strategy to renew within a two-year period
the models in our product range that address 70% of the European
market potential. At CeMAT 2008, TMHE launched the BT Levio

18

Toyota Industries Report 2008

powered pallet truck and BT Staxio pedestrian stacker. Both models
feature an all-new design incorporating extensive market researchto highlight the values of simplicity, safety and durability. Developed
specifically for “walkie” operations, the BT Levio and BT Staxio
address Europe’s largest lift truck market segment in terms of unit
sales.
At CeMAT, TMHE also previewed a new generation of BT Reflex
reach trucks and Toyota 48-volt electric counterbalanced lift trucks.
By setting even higher standards for safety, productivity and durability,
the new BT Reflex models will continue the tradition of reach truck
excellence for which the BT brand is famous. The new Toyota 48-volt
range will feature three-wheel and four-wheel models and will deliver
improved performance and productivity. When launched, the newtrucks will significantly enhance the competitiveness of TMHE’selectric counterbalanced lift truck range.
In addition, TMHE will continue to expand Toyota I_Site, aninformation system that provides customers with the information theyneed to reduce their materials handling costs, enhance safety andoptimize the use of their trucks based on information straight fromthe truck and its usage.
The new CESAB ECO-P high-tonnage electric counterbalanced
lift truck will also be launched. This compact yet robust truck has
load capacities of 6 to 8.5 tons and delivers excellent ergonomics,
performance and reliability.
TMHE will continue to enhance its capabilities in terms ofproviding excellent services and added-value solutions.

International and Chinese Markets
Continued strong growth is projected for the international market
in 2008. Accordingly, TMHI will engage in key efforts to further
strengthen its competitive advantage with regards to its productrange and market coverage, including the launch of several
products that will coincide with major trade shows and distributor
conferences. These new products will offer substantial improvements
for customers and enable TMHI to keep pace with robust market
growth.
In India, TMHI will work to strengthen its ability to provide a wide
range of products supported by services to meet expected growth indemand for materials handling equipment.
Brazilian operations will continue to focus on increased market
coverage and customer support. We expect to continue positive
developments achieved over the past few years due to ourstrengthened market position.
Overall strategies are based on TMHI’s dedication to determining
the best approach to strengthen its customer relationships andimproving its abilities to support customers.
A strong emphasis on growing the dealer network and capability
will continue in China to capitalize on the strong start realized todate. We will continue to develop Chinese operations and improvecapabilities to serve our customers.

Topics

Concentrating Domestic and International
Sales Operations for Materials Handling
Equipment at the Takahama Plant

a radio data frequency (RDF) system, a remote system to track the
goods on the shelf to optimize the picking activity.

In January 2008, Toyota Industries transferred the domestic
and international sales operations of its Nagoya branch to
the Takahama Plant in Takahama, Aichi Prefecture, which is
involved in the development and production of materials handlingequipment. This will enable closer cooperation among sales
departments and development and production departments,
which will make it easier to identify customer needs. Through thecomprehensive integration of functions, Toyota Industries intends
to supply products that are even more outstanding in terms ofsafety, the environment, quality, cost and delivery.

“Make it Happen”: TMHE Launches the
Toyota Tonero

In addition, customers can experience new productfunctions first-hand at the newly built showroom, which allows
us to engage in proactive sales promotion activities by proposing
ways to enhance logistics operations through TMHJ’s diverse
product lines.

CESAB Factory
The CESAB factory in Bologna, Italy, is continuing to take part in
TMHG’s program of deploying TPS throughout the entire group.
Applying the Genchi Genbutsu (“Go & See”) principle, several key
managers at CESAB have completed a training session at the
Takahama Plant in preparation for further TPS implementation
within the CESAB production center.
Joint activities in the area of product development are also
progressing according to plan, whereby preparations for new
product manufacturing are the main focus and challenge for the
management team. Important changes in the logistics process
are underway to prepare for and manage a significant flow ofcomponents from Japan. This will allow management of 45% moreparts, using an innovative kitting system to serve the assembly
line, as well as Junjo management of components, supported by

Sunny Marbella, Spain witnessed a unique event in May, 2007—
the birth of the Toyota Tonero, a new generation of enginepowered lift trucks. More than 120 members of the TMHE
network as well as 60 journalists from 19 countries gathered fora launch event with the theme “Make it Happen.” The program
included a Distributor Launch, European Press Event and Trainthe Trainer seminars. Participants learned how the Tonero delivers
class-leading standards in five key areas: safety, productivity,
durability, comfort and the environment. Also introduced was the
Tonero+ formula, which allows customers to choose additionalsafety, productivity, durability and comfort features in line with their
specific business needs.
Reactions to the Tonero launch were very positive. In addition
to enthusiasm over the new lift trucks, members of the TMHE
marketing and sales companies also welcomed the opportunity
to meet colleagues from within the newly integrated European
network at the first official TMHE launch event. Production of the
Toyota Tonero began in September 2007 at the Toyota Industrial
Equipment, S.A. plant in Ancenis, France.

Raymond Earns High Accolades for its
Efforts in Fuel Cell Field
In 2007, Raymond installed an indoor hydrogen-refueling centerand received all safety approvals. Overall documentation andtraining are complete. Currently, fuel-cell lift trucks are operatingin the factory. Raymond has received
excellent press coverage for its
fuel cell initiative including featurearticles in Industrial Utility Vehicle
and Industrial Vehicle Technology
International magazines. Additionally,
the company held a press conferencein December 2007 to provide an
update on the New York State Energy
Research and Development Authority(NYSERDA) project.

Toyota Industries Report 200819

Survey of Businesses

Materials Handling Equipment
Products for the Japanese and International Markets

Please visit www.global-toyotaforklifts.com for more information.

Industrial Vehicles

GENEO (8FG25)

GENEO-B (7FB15)

GENEO-E (7FBE15)

GENEO-R (7FBR15)

Tow Tractor

Skid Steer Loader

Internal combustion
counterbalanced lift truck

Electric counterbalanced
lift truck

Three-wheel electriccounterbalanced lift truck

Electric reach truck(2TD25)(5SDKL8)

Materials Handling Systems

Partner Rack

Rack Sorter B

Rack Sorter P

Tugcart2AFBR15APLB8Rail-less mobile rack

Automated storage andretrieval system(Plastic container type)

Automated storage andretrieval system(Pallet type)

Automatic guided
vehicle system

Automatic guided
lift truck

Automatic guided
pallet truck

Please visit www.aichi-corp.jp for more information.

Truck Mount Aerial Work Platforms

SH15B

SE08C

Self-Propelled Aerial Work Platforms

SB12A

SP14CJ

Note: Although Aichi Corporation is not integrated into the Toyota Material Handling Group, it comprises an important part of the Materials Handling Equipment Business.

20

Toyota Industries Report 2008

SV08CNL

Products for the North American Market
Please visit www.toyotaforklift.com for more information.

7FGU708FGCU25

7FGCU55-BCS

Internal combustion pneumatic tire
counterbalanced lift truck

Internal combustion cushion tire
counterbalanced lift truck

Internal combustion cushion tire
counterbalanced lift truck—boxcar
special model

8FGU25

7FBEU20

7FBCU25

7BPUE15

Three-wheel electric counterbalanced
lift truck

Electric cushion tire counterbalanced
lift truck

Electric order picker

Internal combustion pneumatic tire
counterbalanced lift truck

Please visit www.raymondcorp.com for more information.

Raymond Model 7400
Reach-Fork Truck

Raymond Model 4200 StandUp Counterbalanced Truck

Reach truck

Electric counterbalanced truck

Raymond Model 8400 Pallet Truck
Electric pallet truck

Raymond Model 5600
Orderpicker

RaymondSwing-Reach Truck

Order picking truck

Very narrow aisle truck

Toyota Industries Report 200821

Survey of Businesses

Materials Handling Equipment
Products for the European Market
Please visit www.toyota-forklifts.eu for more information.

Toyota Tonero

Toyota 7FG/D40

Toyota 7FBMF25

Internal combustion counterbalanced
lift truck (1.5-3.5 ton)

Internal combustion counterbalanced
lift truck (3.5-5 ton)

Electric counterbalanced lift truck (80V)

New Toyota 48V

Toyota Traigo

Toyota 4CBT2Three-wheel and four-wheel electriccounterbalanced lift truck (48V)*Will be launched in late FY2009

Three-wheel electric counterbalanced
lift truck (24V)Electric tow tractor

Please visit www.toyota-forklifts.eu for more information.

22

BT Vector

BT Reflex

BT Stratos

BT Staxio

Very narrow aisle truck with shuttle
forks

Reach truck* Will be launched in late FY2009

Powered stacker truck with stand-in
cab

Pedestrian powered stacker* Will be launched in FY2009

BT Minimover

BT Levio

BT Opus

BT Pro Lifter

Powered stacker truck

Powered stacker truck* Will be launched in FY2009

Low-level order picking truck

Hand pallet truck

Toyota Industries Report 2008

Survey of Businesses

Logistics
Offering Advanced and Efficient Logistics Services
Utilizing Know-How Cultivated through Toyota
Production System
In fiscal 2008, net sales of the Logistics Segment increased ¥28.1 billion, or
31%, to ¥117.5 billion, exceeding ¥100 billion in the sixth year of operation
since we initially entered this business in 2002. We will continue to respondto customer demand for services that utilize our extensive know-how inmaking logistics improvements, beginning with our expertise in the Toyota
Production System (TPS) cultivated at manufacturing sites.

Proposing Logistics Best Suited to
Respective Customers
Toyota Industries’ Logistics Business presently consists of the threebusiness pillars of planning, design and operation of distribution
centers, high value-added services and distribution of automotive
parts.
Planning, design and operation of distribution centers areundertaken mainly via the Advanced Logistics Division as well as
Advanced Logistics Solutions Co., Ltd., a wholly owned subsidiary.
Specific services include making proposals for logistics plans andoperating distribution centers for a variety of corporate customers.
Rather than merely providing consigned logistics services, we strive
to raise the overall efficiency of logistics by identifying and solving
new problems from the customer’s viewpoint as we execute logistics
solutions planned and proposed by Toyota Industries.
High value-added services are provided through two subsidiaries,
Asahi Security Co., Ltd. (Asahi Security) and Wanbishi Archives Co.,
Ltd. (Wanbishi Archives). Asahi Security, which became a subsidiaryin March 2005, meets the needs of the retail and services industries
by undertaking the equipment security business and providing cash
management outsourcing services such as cash and cash proceeds
collection and delivery. Meanwhile, Wanbishi Archives, which became
a wholly owned subsidiary in May 2007, offers sophisticated riskrelated services that include storing, managing and confidentially
deleting crucial data for companies and government agencies andproviding data backup in the event of disasters.
The distribution of automotive parts is handled by the Taikoh
Transportation Group, which undertakes consigned transportation for
numerous automotive parts manufacturers. These parts are collectedaccording to each delivery destination and then sorted onto pallets,
thereby ensuring the supply of “what is needed, when it is needed,
and in the amount needed.” Through cooperation with Toyota Motor
Corporation, Taikoh Transportation pioneered the completion of theindustry’s first automotive parts logistics system that consists ofrelay (intermediate) logistics bases. This business has achieved asteady increase in sales in line with increased production of TOYOTA
vehicles in recent years.
Backed by these three business pillars, we are building a
structure for logistics services under which customers can entrust
us with managing the flow and storage of “goods,” “cash” and“information.” Based on the concepts embodied in TPS, we will
respond to customer needs for reducing costs by thoroughly
eliminating waste in logistics.

TopicsWanbishi Archives Constructs New
Building for BPO Services
In February 2008, Wanbishi Archives completed a newbuilding for BPO (business process outsourcing) services at
the Kanto No.3 Center in Saitama Prefecture. The building
handles search services, which are one type of BPO services.
Specifically, this facility sorts, classifies, arranges and storeslarge volumes of documents entrusted by customers as wellas provides a document search and delivery service startingfrom volumes as low as single pages. Wanbishi Archives
is actively addressing the needs of contemporary society
in which company structures for managing information
assets are being strictly scrutinized, due in part to such
legislation as the Personal Information Protection Act and
J-SOX (the Japanese version of the U.S. Sarbanes-Oxley
Act). Accordingly, Wanbishi Archives maintains extremely
high levels of security by prohibiting entry by unauthorized
persons through measures such as restricting accesswithin the Kanto Center, the BPO building and the building’s
individual storage rooms and by clearly delineating document
storage space and work space.

Toyota Industries Report 200823

Survey of Businesses

Car Air-Conditioning Compressor
Our Global No.1 Share is Testimony to the High
Quality of Our Products
Thanks to outstanding technologies and unsurpassed high quality, Toyota
Industries’ car air-conditioning compressors have an overwhelming
competitive advantage, which is readily evidenced by our top share of
the world market. Determined to retain our leading global position, we will
rigorously continue to hone our technologies and meet the increasingly
sophisticated needs of users.

Worldwide Unit Sales Reach an All-Time High
Toyota Industries’ Car Air-Conditioning Compressor Business has

Responding Decisively to TechnologicalInnovations in Automobiles

consistently maintained the distinction of being the industry leader,

Advances in automobile-related technologies have been

as we continually leverage our unique technological capabilities

accompanied by increasingly sophisticated and diverse needs into develop new products ahead of competitors. Developed

car air-conditioning compressors. Moreover, high crude oil prices

through close collaboration with automakers, Toyota Industries’

and heightened environmental awareness worldwide have spurred

car air-conditioning compressors achieve world-class quality andunprecedented demand for air-conditioning compressors that

performance in terms of reliability at high operating speeds, quiet

enhance fuel efficiency in conventional internal-combustion vehicles.

operation, compactness, weight reduction and fuel efficiency.

Committed to meeting such needs, we continue to upgrade thePrime examples of our outstanding products include the compact,

performance of our externally controlled variable-displacement

lightweight 10-cylinder swash-plate fixed-displacement compressor

compressors, which were the world’s first such compressors, byand the variable-displacement compressor that automatically controls

drawing on our overwhelmingly superior product development

cooling in accordance with interior and exterior temperatures as wellcapabilities to differentiate our products from those of competitors.

as the state of the vehicle’s engine. Both of these compressors haveToyota Industries has also achieved significant advances in air-been widely adopted by top-name automakers worldwide, enabling

conditioning compressors for hybrid vehicles. Our electrically driven

us to firmly maintain the global No.1 share.

compressors, developed in collaboration with our Electronics Division,

Supported by the development of products that anticipate userneeds and proactive

the Prius, one of the world’s premier hybrid vehicles.

sales expansion activities,

Compressor Sales

Toyota Industries’(Million units)

total sales of car airconditioning compressors

With a view to EU restrictions on the use of certain CFC
substitutes scheduled to be gradually implemented from 2011, we

25

are focusing on various options for the development of compressorsthat utilize other substitute refrigerants.

20

in fiscal 2008 reached
an all-time high of 21.86
million units, an increase

As these examples demonstrate, we are determined to remain
15

at the forefront of the industry as we strive to appropriately respondto diversifying needs by fully taking advantage of our technological10of 1.4 million units, withmainly Europe and theexcellence and overall capabilities through cooperation with
automakers and other business divisions and pushing ahead with

5

United States contributing
to the increase.

24

Toyota Industries Report 2008

are fitted in Toyota Motor Corporation’s line of hybrid vehicles such as

development in new technology fields.
0
(FY)

04

05

06

07

08

Worldwide Manufacturing Bases of Car Air-Conditioning Compressors

TDDK

MACI

Toyota Industries
Corporation

DNTS

TACG
ACTIS

YSD
TACK
SUBROSDNIA
DNBRConsolidated subsidiaries
Licensed manufacturers

Toyota Industries produces compressors through a global tripolar structure encompassing Europe, the United States and Asia, established through direct investments. We also
license production in Asia and South America. By carrying out production near our markets, we believe we are better able to supply products precisely in line with local market
needs while reducing shipment costs and exchange rate risks.

Operating a High-Quality, Highly Efficient
Production Structure

Industries will strengthen its global production capabilities and further
enhance quality, cost and delivery (QCD).

Besides developing top-quality products, Toyota Industries is
responding to the needs of customers worldwide by strengthening its
production structure.

TopicsToyota Industries currently operates manufacturing bases inestablished an integrated production structure encompassing

Electrically Driven Compressor (ES34)
Seriesmolds, die casts, processing and assembly at the Kariya, Obu andToyota Industries’ electrically driven car air-conditioning

Higashiura plants, which serve as mother plants for all domestic andcompressors are fitted in TMC’s hybrid vehicles such as

overseas plants. Additionally, each manufacturing base carries out

the Prius. Widely recognized for their high quality, thesehigh-quality, highly efficient production utilizing robots and internallycompressors have been also fitted in the top-of-the-line

developed and manufactured equipment.

Lexus LS600h and LS600hL hybrid sedans.

Japan, the United States, Germany and China. In Japan, we have

To respond to increased orders from automakers, Toyota

Fixed-Displacement Type

10S17 compressor

SCS06 compressor

SV07 compressor(Swash-plate type)(Scroll type)(Vane type)Continuous Variable-Displacement TypeFor Hybrid Vehicles

7SBU16 compressor

7SEU17 compressor

ES27 electric compressor

ES34 electric compressor(Swash-plate type)(Externally controlled,
clutchless type)(Hermetic scroll type)(Hermetic scroll type)

Toyota Industries Report 200825

Survey of Businesses

Automobile
Working to Attain the Synergistic Benefits of theAutomobile-Related BusinessAs a member of the Toyota Group, Toyota Industries’ Automobile Segment
contributes to Toyota Motor Corporation’s (TMC) global operations throughthe assembly of vehicles and manufacture of engines, automotive parts andstamping dies. In an effort to support the advancement of automobiles, eachbusiness domain of the Automobile Segment carries out efficient, industryleading production based on the Toyota Production System (TPS).

Toyota Industries develops and manufactures vehicles, engines, car

Each of Toyota Industries’ automobile-related businesses

electronics products and stamping dies. The Vehicle Business ispreviously carried out operations as an autonomous entity. In January

responsible for the production of compact and midsize vehicles and2007, however, we established the Automotive Headquarters toproactively participates in the development of new cars. The Engine

bring together the capabilities of these businesses and further

Business manufactures diesel and gasoline engines, as well asreap synergistic benefits. We intend to deepen cooperation among

engages in environmental measures through the joint development ofthese businesses and mobilize the combined competencies of theclean diesel engines with TMC.

Automobile Segment in our efforts to contribute to the development

The Car Electronics Business is strengthening the development

and manufacture of appealing TOYOTA cars.

and manufacture of electronic components and devices primarily forhybrid vehicles for which market expansion is expected to continue.

Automotive Headquarters

Vehicle Division

Machinery &Tools Sub-Div.

26

Toyota Industries Report 2008

Engine Division

Electronics
Division

Vehicle

A Frontrunner among Automobile Body Manufacturers through QCD

Toyota Industries assembles compact and midsize automobiles

upper body and was highly commended by TMC for establishing an

under consignment from TMC. We currently manufacture threeefficient mass production structure.

TOYOTA models, specifically the Vitz (Yaris outside Japan), the RAV4

Through various measures implemented in gearing up for thefor overseas markets and the Mark X ZiO for the Japanese market.

assembly of the Mark X ZiO, our assembly plant has realized further

Moreover, through our active participation in the development of newquality improvements, beginning with the coating process, and isvehicles, Toyota Industries has further expanded its role in TMC’s

now firmly positioned to produce almost every type of midsize model.

operations.

In fiscal 2008, total production of the Vitz (Yaris), RAV4 andMark X ZiO reached a record-high 368,000 vehicles.

New Mark X ZiO Contributes to Record-High
Production of 368,000 Vehicles

In tandem with
TMC’s efforts to achieve

As an automobile body manufacturer specializing in compact cars,

further growth globally,

Toyota Industries has undertaken consigned production for TMC

Toyota Industries will

and actively participated in the development of several vehicles. The

undertake initiatives tosecond-generation Vitz (Yaris), which underwent a full model change

further enhance QCD

in 2005, is a global model incorporating the most advanced safety

and strive to make evenand environmental technologies, winning recognition worldwide as agreater contributions tocompact car of outstanding quality. Similarly positioned as a global

TMC’s global strategy inmodel, the RAV4 also underwent a full model change in 2005 andboth development andnow offers an even roomier interior, outstanding driving performance

production.

Vehicle Production(Thousand units)

400

300

200

100

0
(FY)

and world-class environmental and safety performance, features that

04

05

06

07

08

have earned this car high marks around the world.
Toyota Industries’ Vehicle Business maintains top-level quality,

Topicscost and delivery (QCD) among automobile body manufacturers in
the Toyota Group. In fiscal 2008, Toyota Industries continued to earn

Superior Quality Performance Award

high recognition for QCD, as we once again received the Superior

In February 2008, the Vehicle Division and Machinery & Tools

Quality Performance Award from TMC. Under TPS, our assembly

Sub-Division (stamping dies) received the Superior Quality

plant ensures the thorough elimination of all waste from production

Performance Award from TMC. This marks the seventh

processes, thereby enabling plants to operate with superb efficiency.

and eighth time, respectively, that the Vehicle Division and

QCD is further reinforced by Toyota Industries’ other strengths,

Machinery & Tools Sub-Division have been awarded thisincluding a flexible production system and the quick startup ofhonor in the past 10 years.

production.
In September 2007, we initiated assembly of the Mark X ZiO, a
new midsize luxury car, which underscores TMC’s strong confidence
in our QCD capabilities meticulously nurtured over many years.
Toyota Industries also handled the development of the Mark X ZiO’s

VehiclesVitz (Yaris)

RAV4Mark X ZiOToyota Industries Report 200827

Survey of Businesses

Automobile
EngineToyota Industries’ Engine Business manufactures diesel andBusiness Expansion Centered on Clean Diesel Engines

Toyota Industries also manufactures gasoline engines. Our

gasoline engines. Anticipating future market expansion, we are jointly

gasoline engine production line operates under a flexible structuredeveloping new clean diesel engines with TMC as part of integrated

utilizing automatic guided vehicles to respond quickly to changes

operations that extend to production. Toyota Industries also develops

in volumes and models.

and manufactures industrial engines for its lift trucks and other

Also, we have been highly

Engine Production

materials handling equipment.

commended for production

600(Thousand units)

preparation capabilities that500

New V8 Diesel Engine Being Produced for the
Toyota Land Cruiser

enable the quick startup of
cost-efficient production of

400

Clean diesel engines are attracting growing attention, thanks largely

new engines.

300

to their lower CO2 emissions compared with gasoline engines.

In addition, we also
200

Highlighting this rising interest, diesel engine vehicles already accountdevelop and manufacture

for approximately half of all new car sales in Europe. In Northengines that further enhance

100

America, the number of diesel engine vehicles is forecast to expand

the competitiveness of our lift

0in line with soaring energy prices.

trucks.

(FY)

04

05

06

07

08

Addressing these trends, Toyota Industries developed the 2.2-liter
AD diesel engine together with TMC and commenced productionin March 2005. This engine is currently fitted in such vehicles as theRAV4 and Lexus IS for the European market.
Adding to our lineup of diesel engines, in August 2007 we
commenced production of a new 4.5-liter, 8-cylinder VD clean diesel
engine for the new Land Cruiser. Toyota Industries played a central
role, with our engineers taking the lead in the development process.
The new Land Cruiser was developed under the concept “Kingof 4WD,” making it essential that the engine provides outstanding

TopicsTechnology Development Award
In fiscal 2008, Toyota Industries received the Technology
Development Award from TMC for developing a VD clean
diesel engine for the new Land Cruiser. The engine waspraised for such performance capabilities as clean exhaustemissions and driving power as well as for having theruggedness required as an engine for the Land Cruiser.

performance capabilities. In working to meet this objective, we set
out to “supply the world with diesel engines that satisfy demanding
owners” and successfully developed a diesel engine that offers toplevel performance in every category, including clean exhaust as wellEngineas power performance, fuel economy, quietness and reliability. In
recognition, Toyota Industries received the Technology Development
Award from TMC.
In fiscal 2008, we achieved favorable sales of our VD clean diesel
engines and KD diesel engines for TMC’s Innovative International
Multi-Purpose Vehicle (IMV) series. Mirroring this strong performance,
total sales (unit sales to outside customers) in fiscal 2008 reached arecord-high 510,000 engines.

VD diesel engine

2AD diesel engine(Displacement: 4.5 liters, used in
the Land Cruiser)(Displacement: 2.2 liters, used in
the RAV4 and Lexus IS)

to become the top manufacturer of diesel engines within the Toyota

2KD diesel engine

2AZ-FE gasoline engine

Group.

(Displacement: 2.5 liters, usedin the Hilux Vigo)(Displacement: 2.4 liters, used in
the Estima)

Becoming a Top Manufacturer of Diesel
Engines within the Toyota Group
Toyota Industries has strengthened its engine development structure
through such initiatives as upgrading testing facilities and increasing
development staff. In setting our sights on the global market for clean
diesel engines, we will develop next-generation clean diesel engines
and strengthen production capabilities in a timely manner as we strive

28

Toyota Industries Report 2008

Car Electronics

Power Source Devices that Support Ongoing Advances in Hybrid Cars

Utilizing power electronics circuit technologies and electric drive
system capabilities, Toyota Industries develops and manufactures

Topicselectronic components and devices for automobiles, including hybrid
vehicles.

Technology Development Award
In fiscal 2008, Toyota Industries’ Electronics Division received

New DC-DC Converters for Lexus LS600h

the Technology Development Award from TMC for the

Drawing on power electronics technologies cultivated through its

development of DC-DC converters for the Lexus LS600h.

development of electric lift trucks, Toyota Industries carries out in-

Responding to rising needs for energy conservation, wehouse production of electronic components for each businesswill continue to contribute to reducing environmental loads

division and has accumulated a vast array of technologies in thisin such ways as enhancing fuel efficiency through thefield. At the same time, Toyota Industries has also been engaged

development of core products for hybrid vehicles.

in the development and production of DC-DC converters for hybrid
vehicles and DC-AC inverters for internal-combustion as well as
hybrid vehicles. After being fitted in the first-generation Prius, our DCDC converters were subsequently selected for the Harrier Hybrid andthe Camry Hybrid, and in 2007 we expanded our lineup to include
converters for the Lexus LS600h. We also develop and manufacture
DC-AC inverters, which are capable of converting currents into the

Car Electronics

same voltage as household electricity, thereby enabling the use ofvarious household electronic products inside vehicles.
In addition to carrying out continuous quality-improvement andcost-cutting activities, we are also building new plants to reinforce
our mass production structure in anticipation of expanded market
demand for hybrid vehicles.

An Approach that Anticipates Further
Advances in Hybrid Vehicles
Looking ahead, we will further upgrade our development structureand strengthen collaboration with our other automobile-related
businesses while proactively proposing and developing new products

DC-DC converter
for the Prius
Down-converts the high-voltage direct
current (DC) of the main battery to a lower
voltage to recharge the auxiliary battery
and supply power for lights, wipers, thehorn and other in-car devices.

DC-DC converter for electric
power steering (EPS) for the
Harrier Hybrid (RX 400h)
Down-converts the high voltage ofthe main battery to a lower voltage tosupply power for EPS.

that anticipate needs in next-generation automobiles. We are placingemphasis on developing technologies that enable size, weight andcost reductions, which are particularly crucial for realizing distinctive
products. Concurrently, we will focus our efforts on devices for plugin hybrid vehicles, for which commercialization is highly anticipated.
In addition, besides continuing to develop such auxiliary devices asconverters, we will also strengthen the development of core parts for

DC-DC converter
for Camry Hybrid

DC-DC converter for EPS
for the Lexus LS600h

DC-DC converter for EPS
for the Lexus LS460

DC-AC inverter for
the Tacoma (400W)

electronic components and devices for hybrid vehicles.
As we facilitate collaboration among business divisions, we will
supply key functional components for use in our textile machinery andmaterials handling equipment, including drive and load controllers
for electric lift trucks. Through such measures, we will strive tosignificantly contribute to the creation of competitive products.

Converts DC electricity of the mainbattery into an alternate current (AC),enabling the use of various household
electronic appliances.

Toyota Industries Report 200829

Survey of Businesses

Textile Machinery
Maintaining Our Global No.1 Position Backed by
Our Air-Jet Looms
The history of the Toyota Group began with the invention of an automatic
weaving machine by Toyota Industries founder Sakichi Toyoda. Since then,we have successively developed innovative textile machinery through ourrelentless pursuit of cutting-edge technologies and unceasing applicationof ingenuity, thereby making significant contributions to the development of
the textile industry worldwide. In fiscal 2008, Toyota Industries posted solid
results in the Textile Machinery Business, with sales of air-jet looms once
again surpassing 10,000 units.

Weaving Machinery
Toyota Industries develops, manufactures and sells such weaving
machinery as air-jet looms, which insert weft yarns using air. Our
weaving machinery has won high acclaim from customers worldwide
not only for excellence in basic performance requirements for highspeed and reliability but also for integrating such advanced functions
as monitoring and remote setting via the Internet.
Benefiting from rising sales in China in recent years, Toyota
Industries has sustained a high level of sales of its mainstay air-jet
looms since fiscal 2007, and this trend continued in fiscal 2008, as
sales of air-jet looms once again exceeded 10,000 units. Accordingly,

TopicsCumulative Production of Air-Jet Looms
Reaches 100,000 Units
In February 2008, cumulative production of air-jet looms
reached 100,000 units. Toyota Industries achieved thisnoteworthy milestone 27 years and nine months after
commencing production in May 1980.
Thanks to such outstanding basic functions as highspeed, excellent energy efficiency and low vibration, thecurrent JAT710 seventh-generation model has earned
high acclaim worldwide, including from China. Moreover,continuous technological improvements have enabled the
JAT710 to weave items difficult to produce using previous
air-jet looms such as automobile air bags and glass fibers forelectronic substrates to respond to an even wider range ofcustomer needs.

Toyota Industries maintained the top global market share, a position
we have solidly maintained for more than a decade.
While focusing on developing technologies aimed at reducing theenvironmental burden through greater energy efficiency and raisingproductivity by achieving higher speeds, we will strengthen our global
sales and service structures while working to meet the expectationsof customers the world over.

Spinning Machinery
The Spinning Machinery Business offers an extensive lineup of
spinning machinery, including high-speed ring spinning frames androving frames, capable of both spinning high-quality yarns andproviding superior productivity, in an effort to respond to diverse userneeds.
Overseas, Kirloskar Toyoda Textile Machinery Pvt. Ltd., oursubsidiary in India, manufactures and supplies ring spinning frames tothe local market while also realizing a global product supply structure.

Weaving Machinery

JAT710 air-jet loom

Spinning Machinery

RX240 series ring spinning frame

30

Toyota Industries Report 2008

FL200 roving frame