Toyota Industries Repor t

2013

Year ended March 31, 2013

Corporate Philosophy

Contents(Toyoda Precepts and Basic Philosophy)
Based on the Basic Philosophy that carries on the spirit offounder Sakichi Toyoda, the Toyota Industries Group
contributes to the harmonious and sustainable
development of society and the Earth.
Founder Sakichi Toyoda

n Toyoda Precepts
Carrying out the spirit of founder Sakichi Toyoda,• Always be faithful to your duties, thereby contributing to the Company and to the overall good.
• Always be studious and creative, striving to stay ahead of the times.

Inside coverCorporate Philosophy

1
2—3
4—7
8
9—15
16—24
16—20

Contents

21—24

Prologue
Outline of Businesses
Financial Highlights
To Our Stakeholders
Special Features
1 T■ oyota Industries’ Container Transport AGV
System Contributing to Evolution of Port Logistics
2 A■ iming to Realize Both a Comfortable Vehicle
Interior and Energy Savings• Always be practical and avoid frivolousness.
• Always strive to build a homelike atmosphere at work that is warm and friendly.
• Always have respect for God, and remember to be grateful at all times.

n Basic Philosophy[Respect for the Law]
Toyota Industries is determined to comply with the letter and spirit of the law, in Japan and overseas, and to be fair andtransparent in all its dealings.
[Respect for Others]
Toyota Industries is respectful of the people, culture, and traditions of each region and country in which it operates.
It also works to promote economic growth and prosperity in those regions and countries.
[Respect for the Natural Environment]
Through its corporate activities, Toyota Industries works to contribute to regional living conditions and social prosperity
and also 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 forits customers.
[Respect for Employees]
Toyota Industries nurtures the inventiveness and other abilities of its employees. It seeks to create a climate ofcooperation, so that employees and the Company can realize their full potential.

• Editorial policy• Period covered by the report

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 have beencombined into the Toyota Industries Report from the fiscal year ended March 31, 2008.
In addition to the Toyota Industries Group’s management policies, the report provides easy-tounderstand information regarding its business, social and environmental activities over the
past year as well as its future direction.
This report focuses on activities carried out in fiscal 2013 (April 1, 2012 to March 31, 2013),
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) Sustainability Reporting Guidelines Version 3.1• ISO 26000• Japan’s Ministry of the Environment Environmental Accounting Guidelines (2005 Version)• Japan’s Ministry of the Environment Environmental Reporting Guidelines (2012 Version)

Business Activities

26—31
32—36
32—33
33—34
34—35
36
37—38
39—40

Environmental Initiatives

58—61
62
63
64—66
67—68
69
70
71
72

Special Feature: A Biotope to Link People,
Nature and the Local Community
Vision for Environmental Activities
Structure to Implement Environmental
Management
Fifth Environmental Action Plan
Establishing a Low-Carbon Emission Society
Establishing a Recycling-Based Society
Reducing Environmental Risk and Establishinga Society in Harmony with Nature
Environmental Management
Environmental Impact Flow andEnvironmental Accounting

Materials Handling Equipment
Automobile

Financial Section / Corporate Information

VehicleEngineCar Air-Conditioning Compressor
Car Electronics

Logistics
Textile Machinery

Corporate Social Responsibility

42
43—49
50
51—52
53
54

CSR Policy

55—56

Relationship with Our Local Communities

Corporate Governance
Relationship with Our Customers
Relationship with Our Associates
Relationship with Our Business Partners

74—82
74—75
76—77
78
79
80—81
82
83—87
83
84—85
86
87

Financial Section
Consolidated Eleven-Year Summary
Consolidated Balance Sheets
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets
Consolidated Statements of Cash Flows

Corporate Information
Board of Directors, Audit & Supervisory Board Members
		 and Managing Officers
Major Consolidated Subsidiaries
Major Production Bases
Investor Information

Relationship with Our Shareholders andInvestors

Cautionary Statement with Respect to Forward-Looking Statements
This report contains projections and other forward-looking statements that involve risks and uncertainties. The use of the words “expect,” “anticipate,” “estimate,”“forecast,” “plan” and similar expressions is intended to identify such forward-looking statements. Projections and forward-looking statements are based on thecurrent expectations and estimates of the Toyota Industries Group regarding its plans, outlook, strategies and results for the future. All such projections and forwardlooking statements are based on management’s assumptions and beliefs derived from the information available at the time of producing this report and are notguarantees of future performance. Toyota Industries undertakes no obligation to publicly update or revise any forward-looking statements in this report, whether as aresult of new information, future events or otherwise. Therefore, it is advised that you should not rely solely upon these projections and forward-looking statements inmaking your investment decisions. You should also be aware that certain risks and uncertainties could cause the actual results of Toyota Industries to differ materiallyfrom any projections or forward-looking statements discussed in this report. These risks and uncertainties include, but are not limited to, the following: (1) reliance ona small number of customers, (2) product development capabilities, (3) intellectual property rights, (4) quality issues, (5) price competition, (6) reliance on suppliers of
raw materials and components, (7) environmental regulations, (8) success or failure of strategic alliances with other companies, (9) exchange rate fluctuations,(10) share price fluctuations, (11) effects of disasters, power blackouts and other incidents, (12) latent risks associated with international activities and (13) retirement
benefit liabilities.

1Materials Handling Equipment

Automobile

Logistics

Textile Machinery

Contributing to the Enriched Lifestyles ofPeople Worldwide and the Creation of
a Comfortable Society
Toyota Industries wishes to offer products and services that will bring a smile to people’s faces in their daily lives.
Lift trucks* that support logistics operations around the world. Car air-conditioning compressors* that keep thevehicle interior comfortable. Logistics operations that deliver precious goods with care. Air-jet looms* capable ofweaving various fabrics, including textile with exceptionally soft texture. We believe the task of the Toyota Industries
Group is to continue to support lives filled with laughter and contribute to the creation of a society where people
care about each other.
* World leader in unit sales of lift trucks, car air-conditioning compressors and air-jet looms (Survey by Toyota Industries Corporation)2

Toyota Industries Report 20133

Outline of Businesses
Automobile

Materials Handling Equipment
The Materials Handling Equipment Segment develops, produces, sells and provides services fora broad range of products, from industrial vehicles centered around a full lineup of lift trucks(0.5- to 43-ton capacities) to materials handling systems. Lift trucks, a mainstay product of thissegment, are delivered to customers around the world under the TOYOTA, BT, RAYMOND and
CESAB brands through Toyota Material Handling Group.
Toyota Industries also strives to provide finely tuned after-sales services, which comprise a
crucial aspect of industrial goods, so that customers can always use our products in the best
possible condition. For developed countries, we are leveraging well-established sales andservice networks to raise the level of after-sales services. For emerging countries, we are not
only reinforcing our sales and service networks but also providing service trainer development
programs matched to the needs of respective countries and enhancing service training.
[Main Products]
Lift trucks, warehouse trucks, aerial work platforms, automated storage and retrieval systems,
automatic guided vehicles

Net Sales

Operating Income(¥ Billion)(¥ Billion)

600

40

From vehicle assembly to parts production, the Automobile Segment engages in a wide varietyof car-related businesses. Leveraging synergies among its business divisions in development
and production, the Automobile Segment accounts for 53.2% of consolidated net sales andrepresents the largest business segment of Toyota Industries.
VehicleWith its strengths as an industry leader in quality, cost and delivery, the Vehicle Businessproduces compact to midsize automobiles.
[Main Products]
Vitz (Yaris outside Japan), RAV4, Mark X ZiOEngineThe Engine Business produces both diesel and gasoline engines. We co-develop diesel
engines with Toyota Motor Corporation and possess a comprehensive structure ranging
from planning and development to production.
[Main Products]
Diesel engines, gasoline engines

Toyota Industries’ car air-conditioning compressors are highly acclaimed in terms of their
Car AirConditioning reliability at high operating speeds and quiet operation in addition to such excellent
Compressor environmental-related performance features as compactness, weight reduction and fuelefficiency. The Car Air-Conditioning Compressor Business captures the top global share inunit sales*. * Survey by Toyota Industries Corporation[Main Products]
Fixed-displacement type, variable-displacement type, electric type

Percentage of Net Sales

Car
Electronics

30

400
200

[Main Products]
PCU direct-cooling devices, DC-DC converters, DC-AC inverters

36.9%

20

Utilizing power electronics circuitry technology and electric drive system development
capabilities, the Car Electronics Business develops and produces electronics products forhybrid vehicles and other electric-powered vehicles.

10

0
(FY)

11

12

13

0

Net Sales
(FY)

11

12

13

Operating Income(¥ Billion)(¥ Billion)

1,000

40

800

30

600

10

200
0

The Logistics Segment is composed of three business pillars: planning, design and operation of
distribution centers to help customers reduce their logistics costs; land transportation services
that primarily focus on cargo deliveries via trucks; and high value-added services such as cash
collection and delivery and cash proceeds management services and data storage andmanagement services.
[Main Services]
Planning, design and operation of distribution centers; land transportation services; cash
collection and delivery and cash proceeds management services; data storage, management,collection and delivery services
Net Sales

Operating Income

Percentage of Net Sales

(FY)

11

12

13

0

Net Sales

4

40

2

2

20

1

5.8 %

13

Operating Income
3

6

12

[Main Products]
Air-jet looms, ring spinning frames, roving frames

60(¥ Billion)

11

With a history dating back to the invention of an automatic loom by Toyota Industries founder
Sakichi Toyoda, the Textile Machinery Business is a world leader in the textile machineryindustry backed by an integrated structure that encompasses development, production, sales
and service of weaving and spinning machines.

(¥ Billion)

120

(FY)

Textile Machinery(¥ Billion)(¥ Billion)

53.2%

20

400

Logistics

Percentage of Net Sales

Percentage of Net Sales

2.5 %

100
80
60
40
20
0
(FY)

4

Toyota Industries Report 2013

11

12

13

0

(FY)

11

12

13

0

(FY)

11

12

13

0

(FY)

11

12

13

7

Towing
Towing
Tractor
TractorElectric model
Electricthat
model
is environmentallythat is environmentallyfriendly andfriendly
widelyandusedwidelyin airports
used in airports

Variable-Displacement
Variable-Displacement
Type Compressor
Type Compressor
Contributes
Contributes
to precise
to control
precise ofcontrol
air of air
conditioner’s
conditioner’s
cooling capability
cooling capability
and greaterand fuel
greater
economyfuel economyofofinternal-combustion
internal-combustion
cars cars

Electric
Electric
Compressor
Compressor
Fitted inFitted
hybridinvehicles
hybrid vehicles(HVs) and(HVs)
enablesand enablesuse
use
of air conditionerof air conditioner
even during
evenidlingduringstop
idling stop

DC-DCDC-DC
Converter
Converter
ConvertsConverts
the highthe
voltagehigh ofvoltage
HV batteries
of HV batteries
to run suchto rundevicessuch devices
as lightsasand
lightswipersand wipers

RAV4 RAV4
Automatic
Automatic
GuidedGuidedVehicleVehicle(AGV) (AGV)
for Seaportfor Seaport
Containers
Containers

Fuel Cell
FuelLift
CellTruck
Lift Truck

Contributes
Contributes
to highertoefficiency
higher efficiency
ofof
seaport seaportlogisticslogistics
and improvement
and improvementof the workof theenvironment
work environment

SUV thatSUV
is lovedthat is loved
throughout
throughout
the worldthe world

RealizesRealizes
both environmental
both environmental
performance
performanceand workand
efficiency
work efficiency

SmartSmart
Charging
Charging
SystemSystemEfficiently
Efficiently
chargescharges
multiple multiple
plug-in plug-in
hybrid vehicles
hybrid vehicles
and electricand vehicles
electric vehicles

EngineEngine
Lift Truck
Lift Truck
Internal-combustion
Internal-combustion
model modelthat is powerfulthat is powerful
yet agileyet agile

Electric
Electric
Lift Truck
Lift Truck

DieselDiesel
EngineEngine

Boasts clean
Boastsandclean
environmentallyand environmentallysound performancesound performance

Clean with
Clean
lesswith
CO2less
emissions
CO2 emissions

Vitz/Yaris
Vitz/Yaris
CompactCompact
and fuelandefficientfuel efficient

Warehouse
Warehouse
Logistics
Logistics
Optimizes
Optimizes
customers’
customers’
logisticslogistics
through throughthe operation
the operationof distributionof distribution
centers centers

Land Transportation
Land Transportation
Service
Service
Delivers Delivers“what parts“what
areparts
needed,are needed,when they
whenaretheyneededare needed
and in theand in thequantity quantity
needed”needed”
to automakers
to automakers

Air-JetAir-Jet
LoomLoom
Inserts weft
Inserts
yarnweftusing
yarnairusing
and enables
air and enables
weavingweavingof textilesof withtextilesvariouswith textures
various textures

Ring Spinning
Ring Spinning
FrameFrameOn any given day and any corner of the town, a broad range of Toyota Industries’ products and services aremaking their mark. We will continue to be a company that brings smiles and satisfaction to everyone aroundthe world in the fields of materials handling equipment, automobiles, logistics and textile machinery.

5

RealizesRealizes
high-speed
high-speed
spinningspinningof excellent-qualityof excellent-quality
yarns yarns

6Top Message

Financial Highlights

To Our Stakeholders
Millions of yen
2013

2012

2011

% change
2010

2009

2013 vs 2012

For the YearNet sales

1,615,244

1,543,352

1,479,839

1,377,769

1,584,252

4.7%

Operating income (loss)

77,09870,092

68,79822,002（6,621）

10.0

Ordinary income

86,83680,86673,911

31,756

14,343

7.4

Net income (loss)

53,11958,59447,205（26,273）（32,767）(9.3)

Research and development expenses

39,05732,07027,78826,826

33,646

21.8

Cash dividends per share (yen)

55.00

50.00

50.00

30.00

40.00

10.0

Total assets

3,243,779

2,656,984

2,481,452

2,589,246

2,327,432

22.1%

Total net assets

1,524,933

1,197,841

1,075,939

1,104,929

977,670

27.3

47,41243,51640,82538,90339,916

9.0

Chairman Tetsuro Toyoda and President Akira Onishi, who were appointed to their respective positions after thegeneral shareholders’ meeting held in June 2013, explain our initiatives that have been implemented to build a firmbusiness foundation as well as our measures to attain growth over the medium to long term.

At Year-End

Number of employees■ Net Sales■ Operating Income (Loss)■ Net Income (Loss)(¥ Billion)
2,000(¥ Billion)
80(¥ Billion)
60

60

40

40

20

20

0

0

-20

1,500

1,000

500

-40

-20

0
(FY)

09

10

11

12

(FY)

13

09

10

■ Total Assets■ Total Net Assets(¥ Billion)
4,000(¥ Billion)
2,000

3,000

1,500

11

12

(FY)

13

09

10

11

12

13

■ Cash Dividends per Share
(¥)
60
50
40

2,000

1,000

1,000

500

30
20
10

(FY)

8

0

0

0
09

10

Toyota Industries Report 2013

11

12

13

(FY)

09

10

11

12

13

(FY)

09

10

11

12

Tetsuro Toyoda

Akira Onishi

ChairmanPresident

139Top Message

Establishment of a Foundation for
Medium- to Long-Term Growth
Toyota Industries implemented profit improvement
activities early on prior to the full-blown global recessionthat was triggered following the collapse of Lehman
Brothers in 2008. We remained committed to improving
profits, and just as our efforts began to pay off, we werestruck with a series of serious events, including the Great
East Japan Earthquake and the flooding in Thailand. The
Toyota Industries Group prevailed against these hardships
and initiatives undertaken during this period have enabled
us to maintain a leaner business structure and gainstrengths to generate greater profits.
Together with solidifying our defenses, we have alsogone on the offensive to ensure that we capture business
opportunities and translate them into business results. We
have also been building a strong foothold in each businesssegment to achieve growth over the medium to long term.
In the Materials Handling Equipment Business, we
proceeded with the expansion of our value chain byreinforcing development, production, sales and services
operations. Our efforts in the Car Air-Conditioning
Compressor Business included setting up an optimum
supply structure less vulnerable to the impact of exchange
rate fluctuations and enhancing the appeal of our products
such as excellent fuel efficiency. In the Vehicle and Engine
businesses, our focus has been on achieving an evenhigher performance in terms of quality, cost and delivery(QCD).
We believe that by steadily promoting these efforts weare on track for sustainable growth.
Additionally, investments were directed toward theestablishment of optimum production and supply
structures in the Materials Handling Equipment Businessand the expansion of global production capacity in the Car
Air-Conditioning Compressor Business. With regard to
M&As, we are currently promoting an array of strategic
alliances for further growth. These include acquiring key
dealerships and welcoming Cascade Corporation,a U.S.-based manufacturer of lift truck attachments*,
as a consolidated subsidiary. In the Textile Machinery
Business, we acquired Uster Technologies AG,
a Swiss-based manufacturer of cotton classing
and yarn testing instruments. We expect that thesemeasures, which are designed to achieve growth overthe medium to long term, will begin to bear fruit in
fiscal 2014.
We anticipate that uncertainties will persist in thebusiness environment. As guidelines for achieving
medium- to long-term growth, we unveiled our Vision2020 and Medium-Term Management Plan in the fall of
2011. The Vision 2020 was formulated in line with ourdesire to contribute to a comfortable society and enriched
lifestyles by offering products and services that truly reflect
customers’ needs in a timely manner.
Under the vision, the “solution” business unit, including
materials handling equipment, and the “key components”
business unit centered around car air-conditioning

10

Toyota Industries Report 2013

Vision 2020

Support industries and social foundations around the world by continuously
supplying products/services that anticipate customers’ needs in order tocontribute to a comfortable society and enriched lifestyles

To contribute to a comfortable society and enriched lifestyles

Solution

Key Components
New
Product

New
Product

New
Product

compressors will facilitate global business development
and expand our value chain as the driving force for growthand greater profitability of the entire Toyota Industries
Group. The “mobility” business unit producing vehicles
and engines for Toyota Motor Corporation (TMC) willfurther increase its strengths in terms of quality and costs
to assume the dual role of contributing to enhancing thecompetitiveness of Toyota cars and supporting Toyota
Industries’ management foundation.
In order to ensure a leap forward in the future, we haveformulated the three “muscular” strategies of “3Es,”“Value Chain” and “World Market.”
The first strategy focuses on 3Es (Energy,
Environmental protection and Ecological thinking),
which are the keywords in promoting environment-friendly
manufacturing.
The second strategy concentrates on our Value
Chain. In businesses such as materials handlingequipment, we not only strive to offer high-quality
products but also seek to be of service in every aspect ofcustomer relations, for instance, through an after-sales
maintenance services structure to ensure our products arecontinuously used in optimal condition.
Our third strategy, which targets the World Market,
reflects our desire to extend our geographical coverage toinclude both developed countries and emerging countries
and to deliver our products and services to customers on
a truly global scale.
We aim to realize the Vision 2020 by deploying these

MobilityNew
Product

New
Product

3Es (Energy, Environmental protection and Ecological thinking)<Technological innovation in environment/energy areas>

Value Chain<Expansion of value chain>

World Market<Business development in world markets>

Contribute to realizing a society
with minimum environmental
impact through technologicalinnovation in environment/
energy areas

Create new business value by
strengthening both hardware
and software development by
cultivating technology “seeds”

Develop businesses all over theworld and meticulously
respond to each region’s
customer needs

strategies across the three business units and achieving
growth in each business.
* Devices that are attached in place of forks of lift trucks for directly grabbing or rotating
goods for enhanced operability and logistics efficiency

Initiatives and Business Results for
Fiscal 2013
Overall, fiscal 2013 was marked by a modest economic
recovery underpinned by steady economic growth in the
United States and Southeast Asia, despite the European
debt crisis and the slowing of China’s economic growth.
For Toyota Industries, fiscal 2013 was the first year of our
Medium-Term Management Plan (fiscal 2013 to fiscal
2016), and we promoted various offensive measuresconcerning production and sales operations in respective
businesses. In addition, to realize growth over the medium
to long term, we actively engaged in research anddevelopment in the fields of environment- and energyrelated technologies, including electrification.
In the Materials Handling Equipment Business,aggressive sales expansion efforts were undertaken in

Maintain the world’s
highest-level SEQCD byimproving our business basedon team strength and TPS

Strengthen growth potential byleveraging synergies among
divisions, strategic M&As andalliances

Europe and the United States through initiatives such asutilizing acquired key dealerships. In emerging countries,
we concentrated on bolstering our sales and service
capabilities. These efforts enabled us to achieve betteryear-on-year business results outperforming the market,
which remained on par with the previous year. In the faceof the persistently weak market in Europe, we madevarious efforts that included a reduction in production leadtime for lift trucks, resulting in successfully obtaining largefleet orders.
In March 2013, we acquired U.S.-based Cascade
Corporation and made the company into a consolidated
subsidiary. One of the world’s largest manufacturers of lift
truck attachments, Cascade is renowned for its excellent
capability in responding to customers’ diverse needs. By
adding their lift truck attachments to our lineup, we expect
to expand our business domain, which will enable us tomeet a broader range of customers’ logistics needs andachieve further growth of the Materials Handling
Equipment Business.
Among automobile-related businesses, the Car AirConditioning Compressor Business recorded anincrease in unit sales in North America and Asia, where car

11Top Message

sales showed strong growth. The Vehicle Businesssmoothly launched production of the new RAV4, which
underwent a full model change for the first time in sevenyears. The Engine Business posted higher unit sales ofdiesel engines for TMC’s Innovative International MultiPurpose Vehicle series that specifically targets emerging
countries, pushing up overall unit sales to a record high. In
addition to sales to TMC, the Car Electronics Businessexpanded sales of products for hybrid vehicles (HVs) andother types of vehicles to other automakers in and outside
Japan, thereby making a greater contribution to our overallbusiness performance.
The Logistics Business posted net sales on par withthe previous fiscal year. Although sales of logistics services
declined as a result of the sale of our shares in a
subsidiary, sales of land transportation services forautomotive parts increased. In the Textile Machinery
Business, slower economic growth in China, one of ourprimary markets, resulted in lower sales. Nevertheless, we
worked to revitalize the stagnant market by bolstering oursales activities primarily for air-jet looms, which boast theworld’s top share in unit sales*.
As a result of these efforts, Toyota Industries posted
net sales of ¥1,615.2 billion and operating income of¥77.0 billion in fiscal 2013, exceeding the previous fiscal
year’s results.
* Survey by Toyota Industries Corporation

Initiatives for Medium- to Long-Term
GrowthTo attain the goals of our Vision 2020 and corporate
growth over the medium to long term, we will further
accelerate efforts under the aforementioned three“muscular” strategies of “3Es,” “Value Chain” and “World
Market.”As for the 3Es strategy, the Materials Handling
Equipment Business and automobile-related businesses

12

Toyota Industries Report 2013

run during an idling stop, we will develop more compact
models with increased fuel efficiency and expand sales
to automakers in and outside Japan, which are actively
promoting sales of HVs and other electric-powered
vehicles.
To increase our competitiveness in the Car Electronics
Business, we will use our expertise gained on Toyota cars
to focus on compactness, weight reduction and increased
efficiency primarily for HV converters and inverters.
Although the ratio of the Car Electronics Business in our
total net sales still remains relatively small, we will takeadvantage of the upward trend in unit sales of electricpowered vehicles and seek to expand the scope of vehicle
models fitted with our products. This action should help us
achieve growth of this business and contribute to theare sharing an array of technologies and know-how
mutually accumulated over the years. In the future, we willhone these technologies and expertise and leverage themin both business sectors. For our mainstay lift trucks, we
intend to further enhance the appeal of our products byimproving the performance of our internally manufactured
key components such as motors and controllers.
As part of efforts to develop fuel cell lift trucks, we
initiated a feasibility test of a newly developed fuel cell lift
truck in December 2012 under the Kitakyushu Smart
Community Creation Project promoted by Japan’s Ministryof Economy, Trade and Industry and other organizations.
In the areas of reducing CO2 emissions and diversifying
energy sources, fuel cells are regarded as a new powersource option for materials handling equipment.
In the field of internal-combustion lift trucks, we areworking to enhance the performance of lift truck enginesdeveloped and manufactured by the Engine Division tooffer higher fuel efficiency and cleaner emissions in ourefforts to develop competitive products that combine thestrengths of the Materials Handling Equipment Division
and Engine Division. As part of these efforts, 3.5- to 8-ton
capacity lift trucks fitted with such new engines werereleased in North America in April 2013.
In this manner, we will work to improve energy-saving
and other environmental features of electric and internalcombustion lift trucks and facilitate the development offuel cell lift trucks. Our aim is to accelerate thedevelopment of eco-conscious products while helping
customers achieve higher efficiency in their logistics
operations.
One thing we must pay close attention to in thefield of automobile-related businesses is the future
implementation of increasingly stringent fuel efficiency
regulations across the world. In response, the Car
Air-Conditioning Compressor Business will concentrateon the development of next-generation models by
increasing the product appeal of already highly fuelefficient variable-displacement type compressors. For
emerging countries, emphasis will be placed on thedevelopment of models that achieve an optimum balance
between performance and prices. With regard to electriccompressors for HVs, which allow the air conditioner toelectrification of vehicles.
The second strategy involving our value chain is ofparticular importance primarily for the Materials Handling
Equipment Business. The business has been establishinga stronger structure by integrating sales channels that
separately existed for individual brands in Europe and byacquiring key dealerships in North America. Leveraging
this structure, we plan to make efforts to provide
customers with finely tuned after-sales services, which
comprise a crucial aspect of industrial goods; propose
solutions to improve logistics; and enhance financing
services. In emerging countries in Asia and other regions,
we seek to offer even higher levels of customer service
and expand sales through differentiated service quality.
The third strategy is centered on the world market.

Practical training for service instructors of distributors outside Japann Targetsn Management Targets for Fiscal 2016

■ Net sales: More than ¥3,000 billion■ Operating income: More than ¥200 billion (7%)
■ ROA*1: 5%■ ROE*1: 10%
More than ¥200 billion

Operating income(¥ Billion)

140

96.8
68.7

70.0

77.0

95

22.0

Net sales(¥ Billion)

Providing services at a customer’s site

More than

Solution¥1,500 billion

(6.6)

1,900
1,584
1,377

1,479

1,543

FY2016 targets

Net sales

1,615

1,900

More than 2,000

Operating income(Operating income
ratio)

77(4.8%)

95(5.0%)

140(7.0%)

ROA*1

2.8%

—

5.0%

ROE*1

8.7%

—

10.0%

100

Approx. 500*2
in total between
FY2013 andFY201689*1: Investment securities are calculated on the basis of their purchase prices.

Materials Handling*2: Includes M&A investments
Equipment, Logistics,
Textile Machinery, etc. *3: As of April 26, 2013

More than

2,000

FY2013 results

Capital expenditure¥3,000 billion(¥ Billion)

FY2014 plan*3¥2,000 billion

Key
components¥700 billion

1,615

Compressor,
Electronics, etc.

Mobility¥800 billion
Vehicle, Engine(FY) 2008 2009 2010 2011 2012 2013 2014

(Plan*3)

2016

2021

13

Top Message

The Materials Handling Equipment Business has beenstrengthening its production, sales and service operations
on a global scale. Our latest efforts involved theestablishment of a production base in Vietnam in April
2012. This new base manufactures motors, a key
component of electric lift trucks, and has already started
supplying products to our lift truck production plants
worldwide. As motor performance has a significant impact
on the overall appeal of our lift trucks, we intend toincrease the number of lift truck models fitted with these
motors. In Brazil, where market growth is expected in the
future, we plan to capture growing demand through thelaunch of a lift truck production plant in October 2013.

Lift truck production plant in Brazil (scheduled to commence operations in October 2013)

We believe that these initiatives undertaken by theMaterials Handling Equipment Business have put us on
track to build an unparalleled business structure in theindustry. We will continue to adequately respond tochanges in the marketplace and seek to realize optimum
production and supply structures on a global basis.
In the Car Air-Conditioning Compressor Business,while pushing ahead with production capacity increases atrespective bases around the world, we will expand
production of variable-displacement type compressors, forwhich demand is rising in North America in particular, torespond to customers’ needs for improved fuel efficiency.
In addition, we intend to increase the ratio of locallyprocured parts at respective overseas production bases tominimize the impact of exchange rate fluctuations.

Japan’s strengths in manufacturing lie in its ability to bring
together the wisdom of every function within an
organization, from development, production engineeringand manufacturing to sales and services, in order to create
excellent products at affordable prices through a processof repeated trial and error and constant improvements.
Based on these activities, we will further enhance the
manufacturing capabilities of our mother plants in Japanand thereafter transfer these capabilities to our production
bases around the world. The following three initiatives are
already underway to reinforce our manufacturing
operations.
1. H uman Resources Development at the Technical
Learning Center
Toyota Industries’ Technical Learning Center provides
education to young engineers and technicians inJapan. Based on the concept of genchi genbutsu(go and see for yourself), new employees in engineering
fields must first learn the basics of manufacturing
through a comprehensive, experience-oriented programthat covers everything from planning and designingto actual manufacturing before they are assigned toeach workplace. Our education programs for technicians
focus on individuals’ physical and mental development,
skills training and knowledge cultivation. These programs
are designed to develop human resources both capableof raising the skill levels of our entire workforce andserving as core staff at production sites. We also
participate in national and international skills competitions
as one way of passing on our advanced, highly
professional skills. Since winning a gold medal in theWorldSkills Competition 2007 for the first time, Toyota
Industries’ teams have accomplished excellent results
each year.

14

Toyota Industries Report 2013

machining and assembly, to achieve even higher levels of
quality and productivity and deliver products with greater
appeal to customers.

Spurring Innovation and Accelerating
Efforts to Realize the Vision 2020
In order to prevail over ever-intensifying global competition,
it is essential that we step up our efforts and engenderinnovation. For Toyota Industries, the word “innovation”
means more than just technological advancements usuallyseen in the area of development. The word encompasses
everything that entails a change that has never occurred
before, such as a new combination of existing things or a
new way of producing an existing product.
We will spur innovation in our respective fields ofoperations, from development to services, and accelerate
our strategies for growth and qualitative advancement.
To this end, we will work to enhance our competitive edgein each of the three business units by taking advantage of
our wide range of businesses. At the same time, we will
strive to augment horizontal alignment among thebusiness units to create synergies and maximize thecomprehensive strengths of the Toyota Industries Group.
By making steady progress in implementing strategies
under the Vision 2020 and driving the expansion of thethree business units, we aim to achieve overall corporate
growth and remain fully committed to contributing to acomfortable society and enriched lifestyles.
In closing, we ask stakeholders for their continued
cooperation and support.

GTCC training session

Initiatives to Enhance Monozukuri(Manufacturing) Capabilities
The Japanese manufacturing industry is laden with what isoften referred to as the “six burdens,” and is facing intensecompetition. There is a rising concern that manufacturing
in Japan may decline in line with the hollowing out of the
manufacturing industry, a brain drain of excellent humanresources and a loss of employment opportunities.
Amid this difficult environment, we are striving to bolster
our manufacturing capabilities in Japan even while
promoting global business development. We believe that

2. GTCC Initiative in the Car Air-Conditioning
Compressor BusinessOur car air-conditioning compressors are widely adopted
by major automakers in and outside Japan, and we have
responded to growing demand by expanding production
on a global basis. As our production expands worldwide,
it has become increasingly difficult to maintain a consistentlevel of manufacturing skills throughout the world.
To counter the situation, we established the Global
Training Center of Compressor (GTCC) in fiscal 2013 fortraining manufacturing personnel from production basesaround the world at a production base in Japan thatserves as a mother plant. The GTCC focuses not just on
teaching technical skills but also on instilling our thinking
on monozukuri based on the Toyota Production System(TPS). This initiative is aimed at honing the strengths of our
production bases in Japan that take the lead in Toyota
Industries’ manufacturing operations, while also having
trainees share the skills and knowledge they have gainedin Japan with local staff after returning to their homecountries. This will in turn raise the level of our skills on a
global scale.

Training technicians at the Technical Learning Center

3. Innovation in Production Engineering
Toyota Industries also strives to improve productionengineering capabilities through the development ofinnovative manufacturing methods. Products, no matter
how excellent they are, may be copied by othercompanies once they are released to the market.
Production engineering, on the other hand, allows us tomaintain and enhance our competitive edge if we keep
development results in a “black box” to differentiate
ourselves from competitors. Because textile machinery is
the origin of our business, we have strong advantages infoundry technologies, which are essential in manufacturing
not only textile machinery but also engines, lift trucks andcar air-conditioning compressors. In addition to thesetypes of materials processing technologies, we encourage
innovation in the field of production engineering, including15

Special
Feature1

Toyota Industries’ Container Transport
AGV System Contributing to Evolution of
Port Logistics

Necessity of Automation at Container
Terminals
n Higher Efficiency Essential in Enhancing
Ports’ Competitiveness
Increasingly globalized economic activities have been
generating a greater flow of commodities between
countries. Accordingly, maritime transport, which serves
the crucial role of moving commodities around the world,
has been handling an increasing volume of shipping
containers, with the world’s maritime container traffic in2010 reaching more than five times the volume in 1990*.
Amid this environment, maritime container terminals
not only in Japan but also all over the world have beenpressed to reduce the time needed for the loading andunloading of cargo on and off container vessels andincrease the efficiency of operations in terminal yards.
* Statistics by the Ministry of Land, Infrastructure, Transport and Tourismn Seeking to Improve the Work Environment
In many container terminals, cranes that hoist containers
have cabins 40 meters high from the ground, forcing
operators to work in a tough environment. They are
constantly exposed to ocean winds, intense heat during
summer and severe cold in winter and often work late atnight. Loading containers onto a trailer truck is also a
difficult task, as it requires both the crane and trailer truck
to be stationed precisely at specified locations. Both thecrane operator and trailer truck driver thus need to have ahigh level of skills, experience and sometimes a “feel” toperform their respective jobs. Many have been voicing theneed for improving their work environment.
In order to achieve higher efficiency and a better work
environment, Tobishima Container Berth Co., Ltd. (TCB),
the operator of a container terminal within the Port ofNagoya in Aichi Prefecture in Japan, decided to introduce
large-sized container transport AGVs to automate
operations within maritime container terminals. “The entire
team worked toward one goal,” says project leader
Kazuhiro Suzuki, AssistantGeneral Manager of the Trans
System Engineering Office.
Looking back on their
enthusiasm at that time, headds, “We channeled ouraccumulated AGV systemtechnologies and logistics
know-how into this project withthe determination to contributeto the development and growthof the seaport.”
Kazuhiro Suzuki

Toyota Industries’ Container Transport AGV Specifications
Length: 14.3 meters
Width: 2.8 meters
Height: 1.8 meters
Weight: 23.5 tons
Allowable load: 30.5 tons
Maximum speed: 25.0 km/h (20.0 km/h when loaded)
Drive system: Diesel-electric system

The globalization of economic activities and a subsequent risein cross-border commodity flows have led to a greater volume
of containers handled at seaports. Maritime container terminals,
which play a major role in supporting growing container traffic,
are now required to evolve in many ways to achieve higher
efficiency in their container transport operations and improve thework environment. As such, one of the most significant issues is
automation. Toyota Industries is making a substantial contribution
to the automation of container terminals by leveraging its years ofexperience in developing automatic guided vehicles (AGVs). Thissection highlights our container terminal automation system, aunique project originating from Japan, based on an interview withsome key project members.
Positions and departments of the four Toyota Industries employees featured in this section are as of March 31, 2013.

16

Toyota Industries Report 2013

Assistant General Manager,
Trans System Engineering Office,Engineering Department,
Toyota Material Handling Company
Tobishima Container Berth17

Special
FeatureContributing to Growth by Leveraging
Toyota Industries’ Strengths

able to contribute to not only increasing its logistics
efficiency but also considerably improving the challenging
work environment.

n Efforts in the Area of Software
Development
Building a Total System Covering the Entire
Terminal
To raise the competitiveness of the seaport, we leveraged
our know-how in the field of commodity flow optimization,
which we have cultivated through the development oftransport and storage systems for more than 30 years, andour experience in developing AGVs, thereby contributing
to greater overall operational efficiency at terminals.
For instance, our container transport AGV system
controls the scheduling of AGVs in a Just-In-Time (JIT)
manner by working in conjunction with other componentsof the terminal, such as gantry cranes that transfer
containers from a vessel to a transport AGV. At anintersection within the yard, the non-stop control program
prevents multiple AGVs from entering the intersection at
the same time, saving fuel by eliminating the need to slow
down, stop and accelerate again at the intersection, as
well as providing better transport performance. After being
loaded with containers, ourAGVs are capable of selecting
the optimum route to thestorage yard on their own.
Hiromi Mitoh, General
Manager of the Logistics
Solutions Project, emphasizes
the significance of the
Tobishima project, noting:“Our AGVs operate incoordination with cargo handlingequipment and the management
Hiromi Mitohsystem of the entire terminal,
General Manager,
enabling JIT operations. This
Seaport Business Development Group,
was the world’s first initiative ofLogistics Solutions Project,
Toyota Material Handling Company
its kind that attempted to realize
higher work efficiency.”
By systematizing the operationof the entire terminal, we weren Efforts in the Area of Hardware
Development
Superior Functionality Based on AGV System
Technologies and Know-How
In addition to the software aspect of how to control theentire terminal operation, another important factor of thecontainer transport AGV system is its hardware, namely,
the performance of AGVs that
actually carry containers. We
integrated our various
technologies into these AGVs toensure durability, energy-saving
performance and safety in a
tough operating environment.
Our AGV is about 14 meters
long and weighs more than 50
tons when loaded with a 30-ton
container. This huge vehicle iscapable of autonomously driving
Shinji Katsuda
at the maximum speed of 20
Group Manager,kilometers per hour and parking
Trans System Engineering Office,at a designated location with aEngineering Department,
Toyota Material Handling Company
margin of error of within 2
centimeters. This outstanding
level of accuracy was the major
enabler of automatic transfer ofYard control software

No collaboration among processes
Gantry crane

Crane control

AGV operation control software

Crane control

Yard craneManned trailer truck

Storage process

Notional Diagramof Conventional
Container Terminal

18

Toyota Industries Report 2013

Transport process

AGV
Unloading
process

Collaboration
Container vessel

In a conventional terminal, container
handling and transport operations
are undertaken individually by gantry
cranes, manned trailer trucks and yard
cranes.

Storage process

Notional Diagram ofAutomated Container
Terminal

Collaboration
Transport process

Unloading
process

Container vessel

The system is controlled by AGV
operation control software andother programs, which optimize thecollaboration between AGVs and cranes
and improve the container terminal’s
overall logistics efficiency.

containers between our AGVs and yard cranes, which
helped us make a significant contribution in improving thework environment.
“In addition to ensuring durability against hightemperatures in summer, low temperatures in winter,driving rain and gusty sea breezes, we worked to provide
better resistance against the impact of a fully loaded
container landing on the vehicle, which can exceed 30 G,
as well as a high level of safety,” says Shinji Katsuda,Group Manager of the Trans System Engineering Office.
He recalls, “We also made efforts to respond to therequests of the customer for better energy-saving
performance and easier maintenance.”	Yasushi Saito of the Trans System Engineering Officealso emphasizes theiringenuity in its
structure. “A precisioncomputer forcontrolling the AGV is
installed in the middle
portion of the vehicle
body,” he explains.
“To install other control
devices around thiscomputer, we had tocreate space byYasushi Saito
making devices morecompact. The
designing process
involved thecontinuous fine-tuningof the overall vehicle
balance.”

Trans System Engineering Office,Engineering Department,
Toyota Material Handling Company

Excellent Environmental Performance
Our container transport AGV is driven by a diesel-electric
system, in which an electric motor operates the vehicle
using the power generated by the diesel engine. The
vehicle is also equipped with a fuel-saving mode that
efficiently uses energy by prioritizing when to use and savepower depending on the operating status. “We reduced
the weight of the vehicle itself and modified its operation
system. The result was higher fuel efficiency and less CO2
and nitrogen oxide (NOx) emissions,” says Katsuda proudly.
Multi-Layered Safety Features
We paid particular attention to addressing the customer’s
concern regarding safe operation of our containertransport AGVs at the automated terminal.
Our AGV system provides multi-layered safety features
for potential risks. Each AGV is fitted with a laser radar
device to detect an obstacle in its moving direction. Its
contact-sensing bumper is capable of sensing unexpected
falling objects on its path to avert even minimal contact.
In addition, the AGV’s operation control software program
prevents interference with other AGVs in the vicinity bycontrolling the direction of the AGV’s movement as well as
links to the crossing gate control that contributes to theprevention of a collision between a trailer truck and an AGV.

1 Toyota Industries’ Container Transport AGV System Contributing to Evolution of Port Logistics

n Receiving 2012 Good Design Gold Award*
As described previously, Toyota Industries’ containertransport AGV system effectively combines software(control system) and hardware (AGV itself) to ensure highly
efficient container transport operations, excellent
environmental performance and safety. In this way, ourAGV system assists the entire container terminal, including
gantry cranes and trailer trucks, in achieving higher
operational efficiency.
These superior features have earned high acclaim,
and our AGV system received a 2012 Good Design Gold
Award. As one judge noted, it “really is a fusion of productdesign and social system design, and provides Japan’smaritime transport industry with a new, promising meansof implementing its growth strategy.” Receiving such highpraise from a third party gives us a huge boost in
confidence, and we are more determined than ever tocontribute to customers’ businesses in every possible way.
* Highest prize given to a group of 2012 Good Design Award winners, exclusively selectedby a panel of judges as having particularly outstanding designn Launching AGV System Meticulously
Tailored to Customer’s Requests
The designing of the vehicle itself involved a number ofchallenges. We had to achieve a level of durability able towithstand the shock of a container landing on the vehicle
while protecting a precision-computer mounted on the
body. The vehicle, weighing more than 50 tons, has to run
safely at the maximum speed of 20 kilometers per hourand park at a designated location with a margin of error of19

Special
Feature1 Toyota Industries’ Container Transport AGV System Contributing to Evolution of Port Logistics

SpecialFeatureCustomer Voice2

Roundtable Discussion

Aiming to Realize Both a Comfortable Vehicle
Interior and Energy Savings—Delivering Electric Compressors to Four Corners of the World—
Electric compressor series

within 2 centimeters. We also developed numerous
software programs to ensure safe and efficient
automated operation of multiple AGVs and cranes.
Most importantly, however, was conducting
careful genchi genbutsu (go and see for yourself)
checks to verify that both hardware and software
function properly in every possible circumstance,
the same as in theoretical simulations. “We
conducted feasibility tests mainly at night so as not
to interfere with TCB’s terminal operations,” says
Mitoh. “We made improvements again and again to
increase operational accuracy. Looking back, it wasa daunting, time-consuming task. But we worked as
one team and were eager to meet the customer’s,and ultimately, end users’ needs.”
With unwavering enthusiasm, Suzuki adds:“A collaborative relationship with TCB and othercompanies engaging in terminal operations wasparticularly important. We paid meticulous attention
to the customer’s requests, finding solutions to
issues and building technically feasible measuresthrough in-depth discussions. All project members,
including those engaging in manufacturing, banded
together as one strong team to develop an
operational structure truly needed by the customer
from the perspective of a total system thatencompasses both hardware and software.
Toyota Industries is perhaps the only company thatcan make this project possible, and this makes mevery proud.”n Expected Growth in Needs andFuture Approach
Customers’ needs for higher efficiency in seaportlogistics operations are expected to steadily
increase.
To respond to these needs, we will develop
container transport AGV systems that create newvalues. That will involve combining “human
meticulous attention to detail and flexibility” and“precision and stability of machinery” and delivering
these systems to customers together with our
logistics know-how.
We aim to improve the performance of AGVs
themselves and at the same time pursue acoordinated and collaborative approach toenhancing overall system capability. We will continue
to dedicate considerable efforts toward this goal inhope that our container transport AGV systems willcontribute to better seaport logistics efficiency, andin the end, improve people’s lives.

20

Toyota Industries Report 2013

Masato Kato
President,
Tobishima Container Berth Co., Ltd.

Tobishima Container Berth Co., Ltd. (TCB) is the operator ofa new container terminal opened at the end of 2005 asmodel terminal for a Super Hub Port of the Port of Nagoya.
TCB is a joint venture of 10 companies providing maritime,
harbor and land transportation services. Its mission is tocontribute to the country’s economic growth by achieving
greater convenience and efficiency and to seek ways to
become a win-win terminal for everyone involved.
Our terminal is among the few in the world and the only
one in Asia to fully automate its container transport
operations. We asked Toyota Industries to develop and installcontainer transport AGVs. The company delivered to us
exactly what we have envisioned, that is, AGVs that are not
only automated but also capable of working on their own
with a human touch. Since their introduction in February
2009, these AGVs have not had any accidents and havegained high acclaim among the companies involved interminal operations for improving the work environment andthe safety of operators working within the terminal.
The process of developing, installing and launching these
AGVs entailed a myriad of issues to overcome and involved agreat deal of effort on the part of Toyota Industries staff.
As an individual involved in this project, I witnessed theirincredible commitment and hard work. I still remember eachone of them, and they have earned our deepest respect andappreciation.
In order to fulfill our aforementioned mission, we haverolled out an initiative to gain an unparalleled level ofcompetitiveness. For us, automation does not end with its
introduction into the terminal but marks the beginning of
constant efforts for improvement. By defining the meaning
and indicators of competitiveness for a seaport, we areworking under the belief that to get better we have to change
now while carrying out improvement activities on a daily
basis. More than a year has passed since we began thisinitiative, but we still see a lot of seeds for improvement. As
the saying goes, “We have to renovate ourselves from day today.” Toyota Industries’ team is also providing their support,
and we have high expectations for their technologicalsuperiority and fully appreciate their willingness to take on
any challenge.
We are committed to increasing our competitiveness andevolving into a seaport that makes our customers happy.

n What Is an Electric Compressor?
In a car air conditioner, a refrigerant (liquid) is cycled throughout an air-conditioning system in a repeated process of vaporization(evaporation), liquefaction and re-vaporization, and the vaporization heat generated during this process is used to keep thevehicle interior comfortable. The heart of a car air conditioner is the compressor. Unlike other types of compressors that derive
power from the engine, electric compressors draw power from the battery, allowing the air conditioner to run during an idling stopof HVs and other electric-powered vehicles.

As a leading manufacturer of car air-conditioning compressors, Toyota Industries develops electriccompressors for HVs, PHVs and other electric-powered vehicles that match the needs of customers.
We are making ongoing efforts to expand sales of electric compressors not only to Toyota Motor
Corporation (TMC) but also to automakers around the world.
In 2012, we commenced sales of the ESA34 electric compressor. In addition to such features asenhanced fuel efficiency and lighter weight, the new compressor makes it easier to mount in vehicles.
For this roundtable discussion, four key members of the development project respectively from thedevelopment, productionengineering, quality assurance
and manufacturing departments
got together to look back on thethree-year collaboration effort andtalked about the future of Toyota
Industries’ electric compressors.
HV: Hybrid vehicle
PHV: Plug-in hybrid vehicle
EV: Electric vehicle

21

Special
Feature◉ Electric Compressor Series
Vehicle Size

2003

2005

Large class

2007
ES34

Medium class

ES27

2009
Significantly improved
quiet operation for
luxury vehicles

Smaller and lighter throughindustry-first integration of inverter

World’s first mass-produced
electric compressor

ES14

2011

2013

(Year)

ESA34

Easier to mount on vehicles byplacing inverter on the side

ESA27

Easier to mount on vehicles byplacing inverter on the side

2 Aiming to Realize Both a Comfortable Vehicle Interior and Energy Savings◉ Electric Compressor Sales(Thousand units)

Sales of electric-powered vehicles (HVs, PHVs, EVs) (CY)*

2,000
1,500
Unit sales of Toyota Industries’
electric compressors (FY)

1,000
500

Even smaller and lighter

Compact class

ES18

Receipt of Silver
Prize in 2013 Aichi
Environmental Awards

Through the serialization of electric compressors, Toyota Industries realized reductions in size and weight as well as
higher operational efficiency. In recognition of their contribution to improving fuel efficiency of vehicles and reducing
CO2 emissions, Toyota Industries received the Silver Prize in the 2013 Aichi Environmental Awards.

0

Ken Suito

Assistant General Manager,
Engineering Office No. 3, Engineering
Department, Compressor Division

Takayuki NakaseGroup Manager, Electric AssemblyGroup, Assembly Production
Engineering Office, Production
Engineering Department,
Compressor Division

Product Strengths Incorporating
Technologies, Ingenuity and Teamwork
Suito: Let’s look back on the development phase. In theengine room where the car air-conditioning compressor ismounted, many other devices are also installed including
the engine. In recent years, more space must be set aside
in the engine room to ensure safety in the event of acollision, requiring compressors to be even smaller andlighter. On the other hand, an electric compressor must be
equipped with a motor and an inverter that controls the
motor’s revolutions, which makes the compressor bulkier.
To address such issues, we integrated the inverter with thecompressor and made the motor smaller. For the ESA34,
we changed the placement of the inverter to make it easier
to mount the compressor in a vehicle, thereby realizing amore compact, lighter-weight and more highly efficientcompressor that fully utilizes Toyota Industries’ longaccumulated technologies. One of our strengths, I believe,lies in the fact that we develop and produce motors andinverters in-house.
The ESA34 is also the world’s first electric compressor
to adopt a mechanism to control inner pressure of thecompressor, which contributes to further improving fueleconomy.
Abe: This mechanism is effective in attaining significant
fuel efficiency, but it is revolutionary in an unprecedented
way in other areas as well. Consequently, fully
understanding the development concept and functional
impact of the compressor was required in all phases fromdevelopment to manufacturing as well as thoroughly

22

Toyota Industries Report 2013

Masashi Abe

Takashi WatanabeGroup Manager, Production Quality
Supervisor, Assembly Section,
Group, Quality Assurance Office
Manufacturing Department No. 1,
No. 2, Quality Assurance Department,
Compressor Division
Compressor Division
Positions and departments as of March 31, 2013

analyzing and taking measures for every potential flaw ineach process. That’s why the relevant departments got
together and conducted meticulous discussions from theearliest phase of the development.
Suito: By gathering all related personnel from the relevant
departments from the very first phase of development forthese so-called conference room activities and sharing
information every step of the way, we were able to not only
realize speedier development but also ensure quality andproductivity.
With HVs, the running sound of the compressor tends
to be more noticeable than internal-combustion vehicles
because the engine stops rotating when the car comes toa stop. That makes quiet compressor operation all themore important, and the ESA34 displays its excellence interms of quietness. In this aspect as well, we fully leveraged
our long-standing technologies for quiet operation requiredfor compressors to be fitted in luxury vehicles.
Car air-conditioning compressors must operate undera variety of difficult conditions, including temperaturefluctuations, humidity, dust and vibrations. We believe thetrend toward electric-powered vehicles will continue toaccelerate, and we are undertaking our work with the
pride that it is we who can assure the quality expected ofin-vehicle devices because we have been involved in carrelated businesses for a very long time.
Nakase: In the production engineering phase, we adopted
the shrink-fitting technique, which utilizes the difference
between heat-induced expansion and shrinkage to join
together two parts made of different metals. This requireda process of trial and error under various conditions,(CY/FY)

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

including sensitive temperature adjustments as well as
the thickness and shape of materials. In the end, we
succeeded by making use of the computer simulation
system produced internally.
Suito: These efforts led to a fewer number ofcomponents, which resulted in a reduction in production
processes. I believe it was a significant achievement that
we were able to contribute to cutting costs and making
the compressor lighter while at the same time attaining
better fuel economy.

Launch of Compact Production Line
Responsive to Fluctuations in Production
VolumeNakase: In addition to enhanced product appeal,establishing a production structure responsive tofluctuations in demand is equally important in recent years.
At Toyota Industries, we launched a more compact
production system that is one-third the size of
conventional production lines. This was the first endeavor
for the Compressor Division. We aimed to halve theproduction area allocated for each compressor unit andreduce the number of processes. To that end, we made a
prototype production line built to actual size andmethodically verified the positioning of workers andoperation efficiency in a real-time production setting.
Toyota Industries is working to prevent the outflow ofmanufacturing know-how by internalizing the design andproduction of such primary facilities as production
equipment and inspection devices. In order to realize thiscompact production line, it was necessary to review thesize of equipment and change work processes, but ourhard work paid off and we succeeded in creating the
production line in-house.
Abe: Actually, obtaining pre-approval from automakers is
required when we adopt a new production process or
quality assurance method. To do so, we started
preparations quite early on.
Nakase: For the creation of this compact production line,
we worked together on preparations transcending borders
among production engineering, quality assurance,
manufacturing and other relevant departments. In thisregard, I believe it was an excellent experience for all(Plan)
CY: calendar year ended Dec. 31; FY: fiscal year ended March 31 of the following year
* Survey by Toyota Industries Corporation

departments involved because we were able toconsolidate tasks and processes while ensuring a highstandard of quality.
Watanabe: This compact production line can be applied
to the manufacture of non-electric car air-conditioning
compressors as well. As such, we are proactively installing
the line at production sites outside Japan. In order tohandle future fluctuations in global demand, we areconfident this production line will exert its potential to thefull extent.

Dedicated Initiatives to Ensure High
Product Quality
Suito: Currently, companies are globalizing theirproduction activities and standardizing components. Thatmeans quality is all the more important. In the Engineering
Department, we have been engaging in new development
challenges while utilizing technologies accumulated in thedevelopment of car air-conditioning compressors forinternal-combustion vehicles. I believe each department
has been similarly making various efforts to ensure quality.
Watanabe: In the Manufacturing Department, we created
and will continue to upgrade a procedures manual thatspecifies how a single act or omission in a process will
have an impact on our customers and engage in daily
work accordingly. We also hold a meeting every morning.
This involves confirmation of the previous day’s issues,
no matter how minor they are, and immediate
implementation of countermeasures in cooperation
with personnel tasked with production engineering,
quality assurance and equipment maintenance.
Abe: At the Quality Assurance Department, we faithfully
follow the concept of “jikoutei-kanketsu (build in quality
with ownership)” to incorporate quality in each process toensure that only the best-quality products are sent to thepost-processes. We believe everything we do both on the
production floor and in our daily work is based on thispremise.
In fact, when it comes to quality, our compressors arehighly regarded by automakers not only in Japan but also
in the United States and Europe.
High product quality was not the only factor for
automakers in choosing our ESA34 electric compressor.

23

Special
FeatureThrough a process inspection on the production floor, theyalso came to appreciate the ingenuity built into the
production line, our thinking behind quality assurance andthe skill levels of our workers. I feel the trustworthiness of
our products is backed up by our track record that ourelectric compressors are fitted in every single Toyota HV.
Nakase: In the Production Engineering Department, weare striving to create an environment where employees in
the Compressor Division and the Electronics Division,
which engages in the development of inverters and othercomponents, share the same expertise in our efforts tofurther ensure product quality.
Abe: In my department, we are trying to raise the overall
skill levels of employees through a comprehensive training
program spanning from development to manufacture ofelectric compressors. Carrying out efforts in a holistic way
for one project deepens one’s knowledge and enables us
to gain a broader perspective, which I believe will lead tothe growth of our human resources.

2 Aiming to Realize Both a Comfortable Vehicle Interior and Energy Savings

accurately understanding and meeting the needs of bothautomakers and customers who drive their cars.
We will continue to devote our efforts toward
developing both hardware and software, working closelywith the Electronics Division and manufacturing production
equipment internally. Through such comprehensive
capabilities, we are confident that we can meet the various
needs of automakers while making a range of proposals.
We are determined to realize the continued
development of fuel-efficient and high-performance electriccompressors and contributing to customers’ businesses.
Nakase: In the Production Engineering Department,
I believe the launch of this compact production line enabled
us to accumulate know-how on how to respond tofluctuations in production units. So that we can more flexibly
respond to demand fluctuations on a global basis, we will
work to raise the potential of this compact production line
and proactively apply the know-how to production lines tobe set up in the future in and outside Japan.
Abe: No matter how diversified customer needs become,or no matter how much production units increase, for us
quality will always remain our lifeline. I consider it our
responsibility to continue meeting the expectation ofcustomers while delivering high quality products.
Watanabe: As we expect the manufacture ofcompressors to keep increasing at production sitesaround the world, it is of the utmost importance that we
maintain the best quality regardless of where compressors
are produced. To do so, we are devoting efforts toward
the training of human resources for Group companies
outside Japan by designating production sites in Japan as
mother plants.
Suito: Today, members from each department involved in
the development of the new ESA34 electric compressor
got together to look back on the creative efforts and talkabout the future direction of compressors. I believe thisoccasion turned out to be a perfect opportunity to sharethe sense of fulfillment in creating a great product and tofurther motivate us to continue to offer even better
products for our customers.
In step with more widespread use of HVs and EVs,
we remain fully committed to helping to provide ourcustomers with an energy-efficient and comfortable
driving experience.

Fully Committed to Further Sales
Expansion
Suito: Since our mass-produced electric compressors
were fitted in Toyota HVs for the first time in the world in
2003, we have broadened our customer base of
automakers and increased the number of vehicle models
installed with our products, which resulted in unit sales
growth all around the world. As we expand sales,
however, we must thoroughly meet the more diverse anddemanding needs of our customers. For example, there isparticularly strong demand for quiet operation among
Japanese automakers, while in the United States
outstanding operation of car air-conditioning compressors
under harsh conditions is expected due to the country’s
vastness. Meanwhile, Europe is the world’s mostdemanding region for excellent fuel economy. What’smore, paying close attention to the heating capabilities ofcar air conditioners is equally important for HVs, in which
the engine stops during an idling stop, as well as for EVs,
which are not equipped with an engine in the first place.
We are also expected to make use of eco-conscious
refrigerant from the standpoint of curbing global warming.
Being the world leader in unit sales of car airconditioning compressors* entails extensively andToyota Industries Report 2013

Business Activities
Materials Handling EquipmentP

26 − 31

AutomobileP

32 − 36

Vehicle / Engine / Car Air-Conditioning Compressor / Car Electronics

Logistics

P

37− 38

Textile MachineryP

39− 40* Survey by Toyota Industries Corporation◉ Vehicles Equipped with Our Electric Compressors

BMW

Non-Toyota

VehiclemodelsEstima HV
Highlander HVToyotaVW

Renault

Daimler Porsche

Prius

For HVs

Renault RAV4-EV Nissan

Prius PHVFor PHVs and EVs

Harrier HV

Camry HV

Lexus LS600h

Prius
Alphard

SAI

Honda

Promote sales
expansion

Ford

Aqua

Lexus ES

Yaris

AvalonLexus GS450h Crown HV Lexus HS250h Lexus RX

Lexus IS

Fitted inall models

Prius Lexus CT200h

24

Toyota Industries Report 201325

Materials Handling
Equipment
As a market leader with extensive knowledge of global logistics needs, Toyota Industries provides a rangeof advanced materials handling equipment, including lift trucks, and outstanding logistics solutions tocustomers worldwide.

Corporation, one of the world’s largest manufacturers of lift
truck attachments*1, into Toyota Industries’ consolidated
subsidiary. As the lift truck market primarily in emerging
countries continues to expand and logistics needs
become increasingly diverse, demand for suchattachments is expected to grow. By adding Cascade’s
attachments to our lineup, we aim to expand our businessdomain, respond to a broader range of customers’
logistics needs and achieve further growth of the Materials
Handling Equipment Business.

Business Overview in Fiscal 2013

■ Materials Handling Equipment Sales(Thousand units)

200
150
100
50
0

09

(FY)

10

11

12

13

■ Toyota Material Handling Group Organization Chart

TMHG
RegionOrganization

Brand

Japan

North America

EuropeALOMA*

China

TMHJ

TMHNA

TMHE

TMHI

TMHCN

Toyota Material
Handling Japan

Toyota Material HandlingNorth America

Toyota Material
Handling Europe

Toyota Material
Handling International

Toyota Material
Handling China

TOYOTATOYOTARAYMONDTOYOTABT
CESAB

TOYOTABTRAYMONDTOYOTABTRAYMOND* ALOMA is a Toyota Industries term for Asia, Latin America, Oceania, Middle East and Africa.

26

Toyota Industries Report 2013

*3: Surveys by Japan Industrial Vehicles Association and Toyota Industries Corporation,
2012	Introducing Products Excellent inEnvironmental Performance and Work
Efficiency

Business Activities in Fiscal 2013
Globally, the lift truck market in 2012 remained on par withthe previous year. In Japan, we focused on expanding
sales in the manufacturing industry, where improved
business sentiment has been boosting capital investment,
as well as in such industries as transportation,
warehousing and construction. In Europe and North
America, while striving to capture the diverse needs ofcustomers by rolling out new products and services, we
proactively participated in various exhibitions to appeal theexcellence of our products and services to a wider
audience. Our efforts in emerging countries have been
aimed at reinforcing both our production and sales
capabilities. As part of these efforts, we have completed
construction of a lift truck production plant in Brazil, whichis scheduled to start operations in October 2013, and arereleasing products manufactured in plants in China to the
ALOMA* markets.
In March 2013, we made U.S.-based Cascade

In 2012, the Japanese lift truck market achieved year-onyear growth as the government’s subsidy program for eco
cars stimulated an upturn in capital investment in the
manufacturing industry, including the transportationequipment sector. Toyota Material Handling Japan (TMHJ)
worked to expand sales in the manufacturing industry as
well as in such industries as transportation, warehousing,construction and agriculture, forestry and fisheries. As aresult, unit sales in fiscal 2013 increased 4% year-on-year
to 33,000 units. TMHJ secured a 44.4% share of theJapanese market in 2012, a record high, and maintained
its top position*3 for the 47th consecutive year.

Lift truck fitted with Cascade attachment

As for the Materials Handling Engineering Business,
which is represented by automated storage and retrieval
systems and automatic guided vehicles (AGVs), we arecommitted to meeting a wide range of needs by providing
consulting services for customers’ logistics-related issues
as well as assisting them with installation and operation ofequipment. In response to the growing need for greater
efficiency in the handling of shipping containers spurred bya rise in port logistics volume, we developed an AGV
system for cargo containers*2 based on a pool oftechnologies we have accumulated in the field of AGVs
over the years. The new AGV system is now playing asignificant role in increasing operational efficiency andimproving the working environment of container terminals
at ports.
In the field of aerial work platforms, demand fell in theelectric power industry, our principal customer in Japan,
as power companies cut back on capital investment. In
the leasing and railway industries, however, demand grewin line with such factors as an increase in facility
replacement. Accordingly, Aichi Corporation, which
possesses the top brand of aerial work platforms in Japan,
posted higher sales. Aggressive sales promotion activities
also led to a rise in sales outside Japan. On the whole,sales exceeded the previous fiscal year’s level.
*1: Devices that are attached in place of forks of lift trucks for directly grabbing or
rotating goods for enhanced operability and logistics efficiency*2: See “Special Feature 1” on pages 16–20.

Launch of New Electric Lift Trucks
TMHJ released two model changes of electric lift trucks,
the GENEO-R in May 2012 and the High Pick Lift in
December 2012, for use in indoor logistics sites of abroader range of customers mainly in the mail order, foodand warehousing sectors. These models feature significant
upgrades, including a completely new drive system, andmeet the requirement for longer continuous operation.

GENEO-R

Materials Handling Equipment

In the materials handling equipment market,
sales remained strong in Japan and North
America while growth slowed in Europe, China
and some emerging countries. On the whole,sales were on par with the previous year. Amid
this environment, Toyota Industries reinforced thedevelopment, production and sales structuresand rolled out products matched to respective
market conditions. Although sales of ourmainstay lift trucks outside Japan remained at
the previous fiscal year’s level, we successfully
achieved higher sales in Japan. As a result, unit
sales for fiscal 2013 increased slightly to a totalof 185,000 units over the previous fiscal year. Net
sales rose ¥25.7 billion, or 5%, to ¥596.4 billion.

No. 1 Market Share*3 in Lift Truck Sales

Business Activities

Toyota Material Handling Group (TMHG)
As a market leader with extensive knowledge of logistics
needs across the world, Toyota Industries provides a fullrange of lift trucks and other materials handling equipment
as well as logistics solutions to customers worldwide.
Under the TMHG management structure, we engage
in business under the TOYOTA, BT, RAYMOND and
CESAB brands. Mutually utilizing the sales anddevelopment strengths of each brand, TMHG is promoting
business expansion on a global scale.

Japanese Market

High Pick Lift

Development of Fuel Cell Lift Trucks
In December 2012, TMHJ initiated a feasibility test of its
fuel cell lift trucks in Kitakyushu, Fukuoka Prefecture. A fuelcell produces power through a chemical reaction betweenhydrogen and oxygen in the air and thus emits
considerably less CO2. Because refueling is completed inabout three minutes, fuelcell lift trucks operatecontinuously without theneed for recharging or
replacing batteries,
thereby greatly improving
work efficiency
compared with electric
lift trucks.
Fuel cell lift truck27

	Initiative Aimed at Upgrading Level ofService
In September 2012, TMHJ held the 1st TMHJ Service
Skills Contest aimed at improving the level of service ofdealers. Service representatives of the 40 dealers acrossJapan participated in the contest. Through this event,
TMHJ intends to enhance the skills of its service staff,
increase their awareness and deliver quality services thatbring greater satisfaction to customers.

showcases optimum logistics know-how to customers inan easy-to-understand manner through upgraded displays
and other showroom features.

North American Market
Maintaining Top Market Share*	Highly Acclaimed TOYOTA andRAYMOND Brands
In recognition of providing best-in-class products as well
as optimum logistics solutions and services, Plant
Engineering magazine awarded the 2012 Product of theYear gold and silver award in the material handlingsystems category to TOYOTA’s 4-wheel AC electric lift
truck and RAYMOND’s new 8000 series pallet trucks,
respectively.

* Survey by Peerless Media Research Group, 2012

	Aiming for Industry-Leading ProductOfferings and Customer-Oriented
Services
TMHNA will look for further synergies in the coming year toensure the full power of both the TOYOTA and RAYMOND
brands is utilized. TMHNA will continue to offer industryleading products and total solutions-based offerings
enhancing customer efficiency and productivity.

Materials Handling Equipment* Survey by Crist Information & Research, LLC, 2012	Proactively Launching New Products andServices
Service Skills Contest

Kaizen Solutions Based on Logistics
Know-How

Toyota expanded its product offering in fiscal 2013 with agalvanized chassis option and made it available on its
walkie rider and electric pallet trucks for customers
operating in environments where resistance to rust is vital.

TMHJ participated in LOGIS-TECH TOKYO 2012,
an exhibition held in Tokyo in September 2012. Under
the theme of “Bringing Greater Efficiency in Logistics
Business,” TMHJ presented kaizen (continuous
improvement) examples for logistics that utilize the Toyota
Production System (TPS) and its initiatives inenvironmental and safety-related fields. The Toyota L&F
Customer Center in Chiba Prefecture, which wasreopened in the same month after undergoing renovations,28

Toyota Industries Report 2013

RAYMOND 8000 series pallet truck

TopicsIn 2012, Raymond celebrated its 90th anniversary as anindustry leader in optimum warehouse equipment for
warehousing and materials handling operations. On thisoccasion, more than 3,000 employees and community

TOYOTA 7HB electric pallet truck with new galvanized chassis option

TMHJ booth at LOGIS-TECH TOKYO 2012

Business Activities

The North American lift truck market remained strong in
2012. Toyota Material Handling North America (TMHNA)
remained the market share leader* in fiscal 2013 withcombined unit sales of TOYOTA and RAYMOND brands
of approximately 59,000 units, which was on par with theprevious fiscal year.
Toyota, as a full-line supplier of lift trucks, remained themarket share leader* for the 11th consecutive year, andRaymond continued to hold its number one* market shareposition in narrow aisle electric lift trucks.

In independent studies of lift truck users*, TOYOTA lift
trucks and genuine parts ranked highest in quality, value
and safety.
For the fourth year in a row, Toyota was again named a
Green Supply Chain Partner by Inbound Logistics
magazine, chosen in part for its environmentally friendly
initiatives and continued dedication to supply chain
sustainability.

Also introduced in fiscal 2013, the new RAYMOND
8000 series pallet trucks feature significant increases inmaterial strength that enable these trucks to meet heavyduty application needs. Features also include enhanced
environmental operations through Raymond’s EcoPerformance solutions system for space efficiency andfleet optimization solutions, better operability thanks to aroomier operator compartment and reinforced
components for reduced wear.
Raymond also fitted its iWarehouse fleet management
system with new features, which provide warehousemanagers with increased visibility of equipment availability
and operational conditions on a real-time basis, further
increasing customer productivity.

members were invited for an open-house celebration
held in October 2012.

Raymond total solutions were showcased at ProMat2013 in Chicago, Illinois, in January 2013. Raymond’s
Eco-Performance system was featured in a mock
warehouse with RAYMOND lift trucks in operation.
Raymond also participated in two ProMat educationalsessions, Ecological and Economical Material Handlingand Lift Truck Technology Advances Material Handling.
It was estimated that over 30,000 people attended theexhibition from across the world.

Raymond booth at ProMat 201329

European Market

ALOMA* and Chinese Markets
	Increasing Unit Sales through Proactive
Market Development

The lift truck market in 2012 was marked by greater
uncertainty across the European economies, slightly
underperforming the previous year. Amid these adverse
conditions, Toyota Material Handling Europe (TMHE)
engaged in sales expansion activities with a targetedmarket-to-market strategy while also working to diversify
its panel of services and solutions. Nevertheless, TMHE
posted sales of 58,000 units, a decline of 2%.

Toyota Material Handling International (TMHI) covers the
ALOMA* markets of Asia, Latin America, Oceania, theMiddle East and Africa, while Toyota Material Handling
China (TMHCN) covers the Chinese market.
In 2012, TMHI and TMHCN markets registered slower
expansion due to the deceleration of growth in emerging
countries. However, supported by the continuous efforts
by both organizations to develop these markets, annual
sales in fiscal 2013 reached 35,000 units, an increase of
3% compared with the previous fiscal year.

SpotMe warning system

	Proactive Sales Expansion Activities andMaking Appeals at Exhibitions

The BT Levio Silent powered pallet truck and the BT Lifter
Silent hand pallet truck received the Quiet Mark
recognition for their quiet features by the U.K.-based
Noise Abatement Society. Defined at below 60 decibels,
this level of quietness is considered to allow conversations
without having to raise voices.
TMHE production sites in Sweden, France and Italy
proactively engage in health and safety management
activities. In recognition of risk management education at
the production site in Sweden, all three sites were certified
in May 2012 with OHSAS 18001, an Occupational Healthand Safety Assessment Series, by Bureau Veritas, which isone of the world’s largest third-party inspection andcertification organizations.

* ALOMA is a Toyota Industries term for Asia, Latin America, Oceania, Middle East
and Africa.

	Reinforcing Production and Sales
Operations in Growing Markets
Brazil is the largest industrial vehicle market in Latin
America and is expected to grow further; therefore, TMHI
has enhanced sales activities and the sales and service
networks. The construction of a new production plant
was just completed in São Paulo state. In October 2013,
the new plant will commence production of internalcombustion lift trucks, for which there is strong market
demand.

Initiatives to Expand Market Share

LogiMAT 2013

	Proactively Launching New Products
TMHE unveiled the Traigo 80 electric lift truck, whichfeatures excellent energy efficiency and ensures safety,
and engaged in sales activities throughout Europe.
TMHE also commenced sales of SpotMe, a warning
system for a safe workplace. This system alerts truck
drivers of the potential danger of collision with a flashinglight when a sensor detects the presence of lift trucks orpedestrians in a specific area, contributing to safety at lift
truck operating environments.

30

Toyota Industries Report 2013

In January 2013, TMHE completed the 1-channel, 2-brandstructure* of distributors in primary countries in Europe.
In addition to stronger sales and service networks, thisstructure is designed to expand TMHE’s market sharethrough enhanced appeal of its products and service
quality. Therefore, optimum market-to-market logistics
solutions and close collaboration with customers will be
key success factors to meet diverse needs.
In addition, TMHE works to strengthen its productlineup by launching a counterbalanced lift truck equippedwith lithium-ion battery technology as well as to upgrade
the Toyota I_Site fleet management solution. In this way
and others, TMHE will strive to enhance product appeal
both in terms of hardware and software aspects.
* To integrate separately operated sales channels for TOYOTA- and BT-brand lift trucks

In 2013, an upward trend in the demand of lift trucks in the
ALOMA and Chinese markets is expected. TMHI and
TMHCN will continue to enhance capabilities in terms ofproviding a full range of excellent lift trucks and services tomeet customer expectations.

TopicsThe TMHI Distributor Conference held in
Yokohama, Japan, in September 2012 wasattended by 63 representatives from Toyota, BT
and Raymond distributors spanning 32 countries.
The conference included the confirmation of themid- to long-term vision and specific action plans,
and a common approach for future directions was
confirmed. Also on the agenda were a presentation
on policy management at distributors, a tour of the
Toyota L&F Customer Center and the awards
ceremony for the 2011 TMHI Distributor Award
Program. During the conference, participants
pledged to work harder to achieve objectives
based on the new slogan “Lift Beyond Together.”

Materials Handling Equipment

In fiscal 2013, TMHE continued its proactive sales
expansion activities in the area of logistics solutions. Witha high-quality, abundant product lineup and strong sales/
service network throughout Europe, TMHE successfully
obtained large-fleet orders.
TMHE also attends various exhibitions to pitch its
full-line products and excellent servicing capabilities
directly to customers. In fiscal 2013, TMHE exhibited at
CeMAT RUSSIA 2012 in September under the banner“Innovative Solutions” as well as at LogiMAT 2013, which
was held in Germany in February, under the theme of“Innovation Meets Evolution.” At both exhibitions, TMHE
appealed its comprehensive capabilities, including a wide
range of products, tailor-made service system andlogistics solutions.

	Excellent External Recognition

	Upgrading Product Lineup and Services

Business Activities

	Increasing Unit Sales by Grasping
Market Trends

Toyota Material Handling (Shanghai) Co., Ltd. (TMHS) has
worked to strengthen its marketing capabilities and further
enhance its sales and service networks.
In addition, since February 2012 TOYOTA-, BT- andRAYMOND-brand lift trucks produced in China are sold in
the ALOMA market in an effort to expand sales by meeting
market-specific needs.

Production plant in Brazil and completion ceremony

In India, TMHI has been continuously strengthening its
sales and service capabilities through Toyota Material
Handling India (TMH India) and augmenting sales
expansion activities in order to achieve an increase inunit sales.
In China, Toyota Industry (Kunshan) Co., Ltd. (TIK)
engages in production of TOYOTA-brand lift trucks.
At BT Manufacturing (Foshan) Co., Ltd. (BTMF),
production of BT-brand low lift trucks and stackers hascommenced in January and June 2012, respectively. In
addition, Raymond Manufacturing (Dalian) Co., Ltd. (RMD)
has begun manufacturing RAYMOND-brand compact
towing tractors in February 2012. On the sales side,

TMHI held sales trainer training sessions in
Singapore and Dubai in January 2013 and São
Paulo in March to reinforce marketing activities andimprove customer satisfaction in these countries,
with 57 managers from 36 countries participating.

31

Automobile

In the fields of vehicle assembly, engines, car air-conditioning compressors and car electronics,
Toyota Industries offers a lineup of reliable products to meet the expectations and trust of its customers.

currently a standard feature of Prius + vehicles marketedin Europe.
This product retains the warp-free, smooth andbeautiful surface quality typical of a glass roof yet isapproximately 40%* lighter than its glass counterpart,
improving vehicle fuel efficiency and thus contributing to
the reduction of CO2 emissions. Toyota Industries willcontinue to develop attractive new products that leverage
the distinctive characteristics of plastic glazing.
* Survey by Toyota Industries Corporation

Enhancing Appeal of the Vitz and RAV4Business Overview in Fiscal 2013

■ Vehicle Production(Thousand units)

300

200

100

0
(FY)

Japan Automobile Federation

09

10

11

12

13

	Highest-Level QCD to Contribute to
Production of Attractive Toyota Cars

Starting Production of the New RAV4In December 2012, the Nagakusa Plant in Aichi Prefecture
launched production of the new RAV4, a globally strategic
model to be sold in more than 170 countries, mainly in the
United States and Europe, by Toyota Motor Corporation(TMC). The vehicle’s exterior is marked by the distinctive“keen look” front design, which TMC is adopting uniformly
in its globally marketed vehicles, as well as a bold stylethat pursues an excellent level of aerodynamic
performance. The new RAV4 utilizes Toyota Industries’
technological strengths, including a spindle-type power

New RAV4

	Plastic Glazing Panoramic Roof for thePrius a (Prius v in North America andPrius + in Europe)
Toyota Industries engages in production of a panoramicroof made of plastic glazing for the Prius a, a hybrid
vehicle marketed by TMC in May 2011. The roof is

Production volume in fiscal 2013 rose 56,000
units, or 9%, over the previous fiscal year to666,000 units as a result of an increase inproduction primarily of KD diesel engines.
Net sales increased ¥19.6 billion, or 10%, fromthe previous fiscal year to ¥216.7 billion.
■ Engine Production(Thousand units)

700
600
500
400
300

Automobile

In the automobile industry, the global market
grew along with a recovery in the Japanesemarket backed by the government’s subsidy
program for eco cars and steady market growthin North America and Asia.
In fiscal 2013, unit production dropped by
9,000 vehicles, or 3%, from the previous fiscal
year to 269,000 vehicles. Although sales of Vitz
(Yaris outside Japan) declined, sales of the RAV4
increased. Nevertheless, net sales were up ¥2.3
billion, or 1%, to ¥356.7 billion.

back door, which can open to an angle preferred byindividual users, and was the first ever to be installed in
Toyota cars. The vehicle also clears the world’s safety
standards.
In preparing for production, we paid particular attention
to ensuring quality from a customer perspective anddeveloping production lines that can easily adapt tochanges in vehicle models and production volume.
By engaging in a comprehensive process fromdevelopment to production, we worked to achieve thelevel of quality that guarantees even greater customer
satisfaction. We also successfully built flexible productionlines that are adaptable to changes in vehicle models andunit production in the most compact assembly plant
among TMC’s automobile body manufacturers.
We also became the first automobile bodymanufacturer of the Toyota Group to undertake production
preparation simultaneously at three plants, including
TMC’s non-Japan production bases. In close collaboration
with TMC, we played a role in ensuring the smooth andsimultaneous launch of production at three plants bysetting up a system in which plants in and outside Japan
shared information on issues and leveraged timedifferences to efficiently resolve these issues.

Business Overview in Fiscal 2013

Business Activities

VehicleSince March 2010, Toyota Industries is the sole producerof the Vitz in Japan. With a view to turning the Vitz into along-selling series, Toyota Industries collaborates with
TMC and its dealers to make various suggestions underthe banner “Make Our Vitz More Attractive by Ourselves.”
In the future, we will
extend the scope of
our activities toinclude the RAV4 andseek ways to make it
more appealing andsatisfying tocustomers worldwide.
Under this initiative,
we will plan, develop
and produce specialedition vehicles thatreflect the voices ofour customers.
At the same time,
we also undertake
activities to expand
our customer base byenhancing the appealof the Vitz throughour support toCapturing the win for the third consecutive year in
the Japanese Rally Champion sponsored by the
motorsports events.

Engine

200
100
0
(FY)

09

10

11

12

13

	Toyota Industries’ Diesel Engines Highly
Acclaimed by Customers Worldwide
Toyota Industries’ diesel engines, fitted in a variety of
Toyota vehicles sold around the world, have gained highmarket recognition for their cleaner emissions, greater fuelefficiency and higher performance. KD diesel engines,
for which production started in 2005, are installed in
TMC’s Innovative International Multi-Purpose Vehicle (IMV)
series, and their sales have been achieving steady growth
mainly in Asia and Latin America. The V-type 8-cylinder VD
diesel engine, which was developed primarily by Toyota
Industries, is installed in the Land Cruiser selling
particularly well in Australia, Russia and the Middle East.
In 2012, we developed an AD diesel engine with
idle-stop capability. This new engine is fitted in the RAV4
marketed in Europe as well as the AURIS, contributing to
an improvement in overall fuel efficiency.

In recognition of Toyota Industries’ comprehensive
strengths in vehicle quality as well as delivery, cost andsafety to be the highest among all Toyota-affiliatedautomobile body manufacturers, we received from TMC
an award for excellence in 2012 under the Toyota Quality
Control Award program. In the face of the shrinking
automobile market in Japan, we are further strengthening
our already superior level of quality, cost and delivery(QCD). We also are working to leverage our ability toquickly start up production and a flexible structure in termsof vehicle models and production volume to contribute toproduction in Japan of Toyota vehicles.
AD diesel engine

32

Toyota Industries Report 201333

	Developing Competitive Diesel and Gas/
Gasoline Engines in Non-Automotive Fields

Unit sales of car air-conditioning compressors
increased both in and outside Japan, pushing up
overall unit sales by 1.87 million units, or 9%, to23.42 million units. Net sales rose ¥21.6 billion,or 10%, over the previous fiscal year to ¥228.1
billion.
■ Compressor Sales(Million units)

25
20
15
10
5
0

(FY)

09

10

11

12

13

	Development Efforts Based on 3Es(Energy, Environmental Protection and
Ecological Thinking)Toyota 1KD new industrial diesel engine

	Aiming to Bring Satisfaction to More
Customers
Toyota Industries has been making efforts to achieve
shorter development cycles with improved efficiency. At
the same time, we have been carrying out development of
next-generation automobile engines that can clear Euro 6
and other stringent emission standards, as well as engines
for materials handling equipment and general purposes,featuring greater fuel economy and lower costs.
For our general-purpose engines, we will plan, develop
and produce a lineup of products matched to customers’
needs while actively promoting sales activities.

More stringent fuel economy standards will be enforced in
North America, Europe, Japan and China, requiring
automobiles to provide extremely high fuel efficiency
performance.
Against this backdrop, in the field of car airconditioning compressors to be fitted in internalcombustion vehicles, the need for fuel-efficient models isincreasingly growing for both fixed- and variabledisplacement type compressors. In North America, inparticular, a shift from a fixed-displacement type to avariable-displacement type is accelerating.
In response, we concentrated on development of avariable-displacement type compressor with considerably
greater fuel economy. For products targeting emerging
countries, we sought an optimum balance between
product performance and prices.
In the field of variable-displacement type compressors,
we developed the SES series, which has been adopted by*1: Survey by Toyota Industries Corporation*2: See “Special Feature 2” on pages 21–24.

ESA34 compressor (electric type)■ Worldwide Bases of Car Air-Conditioning Compressors (As of March 31, 2013)

DNDE

Germany

TDDK

Germany
YST

China

MACI

China

U.S.A.

DIAM

U.S.A.

Italy

TICO

DNTS

Japan

Italy

TACK

SUBROS

China

India

TACG

U.S.A.
TICA

U.S.A.

TACI

Indonesia

DNBR

Brazil

6SES14 compressor (variable-displacement type)
Toyota Industries Report 2013

DICH

DSIT

: Consolidated production bases

34

In response to the growing demand for variabledisplacement type compressors triggered by the
anticipated enforcement of more stringent fuel economy
standards, we proceeded with augmenting the production
capacities of our production bases in North America.
In addition, with the aim of increasing the ratio of local
procurement, Toyota Industries Compressor Parts
America, Co. (TICA), a consolidated subsidiary newly
established in North America to produce car airconditioning compressor parts, plans to commence
production of parts in September 2013.
In Europe, the ASEAN countries and China as well,
we are expanding production capacities and increasing
the ratio of locally procured parts to accommodate
growing demand for car air-conditioning compressors.
To respond to the growing ASEAN automobile
markets, in particular, P.T. TD Automotive Compressor
Indonesia (TACI), a production base in Indonesia for car
air-conditioning compressors, will construct a new plant tofurther bolster its production capacity.
In line with our increasingly globalized production
operations, the Compressor Division established the
Global Training Center of Compressor (GTCC) to ensure
product quality. This is an initiative aimed at educating
manufacturing personnel of our overseas production
bases on monozukuri (manufacturing) in Japan as well
as facilitating the nurturing of Japanese staff who will
provide skills guidance at production bases outside Japan.
Our plants in Japan are serving as mother plants andtaking the lead in and providing support to ourmanufacturing operations.

Automobile*1: Short for gas heat pump; air conditioner driven by a gas engine*2: Short for combined heat and power; co-generation system*3: Survey by Toyota Industries Corporation

Business Overview in Fiscal 2013

	Establishing Optimum Global Productionand Supply Structures

TMC in its latest Corolla, General Motors Company andDaimler AG. The new compressor achieves 10%*1 higher
fuel efficiency and a 10%*1 reduction in weight, and weare actively promoting sales to automakers in Japan, theUnited States and Europe.
Our electric compressors for hybrid vehicles (HVs) andelectric vehicles (EVs) are highly renowned for their strong
product appeal. Since initially being installed in thesecond-generation Prius, these electric compressors havebeen fitted in all of TMC’s HVs from the third-generation
Prius to the LS600h. We are also promoting sales of ourelectric compressors to other automakers in and outside
Japan, which are now actively engaged in thedevelopment of HVs, by offering smaller and more fuelefficient products.
In July 2012, we developed the ESA34 electriccompressor*2, which has been installed in HVs of Ford
Motor Company and other automakers. The newcompressor is 10%*1 lighter and has 10%*1 higher fuelefficiency than conventional models, and a change in its
structure makes it easier to mount on vehicles. Appealing
these excellent features, we will accelerate our efforts to
expand sales to automakers in Japan, the United Statesand Europe.

Business Activities

Toyota Industries’ engines are highly renowned for their
excellent environmental performance in non-automotive
fields as well. These engines are used for a wide variety of
applications, including GENEO-HYBRID diesel-poweredinternal-combustion hybrid lift trucks, and adopted by
GHP*1 manufacturers in Japan and CHP*2 manufacturers
worldwide.
In 2012, we developed the Toyota 1KD, a new
industrial diesel engine equipped with a turbocharger
developed in-house. The new engine offers downsized
displacement (43%*3 lower than current models), higher
fuel efficiency (23%*3 lower rated fuel consumption
compared with current models), cleaner emissions and areduction in size.
We also developed the Toyota 1FS, a new gas/
gasoline engine that, just like the Toyota 1KD, realizes thedownsizing of displacement (18%*3 lower than current
models), higher fuel efficiency (12%*3 lower rated fuelconsumption compared with current models, usingliquefied petroleum gas) and a reduction in size.

Car Air-Conditioning Compressor: Licensed manufacturers: Technical service stations

Toyota Industries’ car air-conditioning compressors are widely adopted by automakers around the world, garnering the No. 1*3 position in global sales.
*3: Survey by Toyota Industries Corporation

35

Logistics
Car Electronics

Business Overview in Fiscal 2013
Net sales of car electronics products grewsteadily as a result of an increase in the numberof models fitted with our products such as the
Toyota Prius, Aqua and other HVs as well as thePrius Plug-in Hybrid.

In addition to inverters for drive systems utilizing thisdirect-cooling method, we have developed a powertrain
unit for EVs and other core components. For the
powertrain unit for EVs, we integrated designs offunctional components, such as an inverter, motor andreduction gears, into one package and successfully
reduced the size and weight. By integrating hardware with
an electronic control unit (ECU), including control software,
we are working to increase the added value of the system
as a whole.

Toyota Industries offers customers highly advanced, efficient logistics services to respond to their diverse needs,
including consigned operation of distribution centers; land transportation services; cash collection and delivery
and cash proceeds management services; and data storage, management, collection and delivery services.

Business Activities

	Gaining Experience and Greater Role inElectric-Powered Vehicle Field

Auxiliary Power Source Devices
A DC-DC converter converts the high voltage of HV
batteries to a lower voltage level suitable for operating
lights, wipers, horns and other auxiliary devices. Sincebeing adopted in the first-generation Prius, we havecontinuously developed more compact and lighter weightmodels, and cumulative production hit 5 million units in
December 2012.

Business Overview in Fiscal 2013

Powertrain unit for EVs

Charging Infrastructure
Backed by our experience in developing
chargers for the RAV4 EV originallyreleased to the market in 1997, we havebeen making efforts to promote thedevelopment of the charging
infrastructure jointly with Nitto Kogyo
Corporation. In February 2013, ourEVC1-IC charging stand became the first
product certified under the Product
Certification of AC Charging Equipment
for EV and PHEV of the Japan Automobile
Research Institute, Registration Body
(JARI-RB). This certification assures that
customers can use our charger safely andwith peace of mind.

Taikoh Transportation Co., Ltd.’s land transportation services

	Planning, Design and Operation ofDistribution Centers

Charging stand

DC-DC converter fitted in the Aqua

A DC-AC inverter is equipped to use home electric
appliances in a vehicle. Since commencing production in
1995, we have achieved cumulative production of 10
million units in March 2013.
We have developed an on-board charger based on
our technologies and know-how regarding EV chargers
developed in the 1990s. The resulting on-board charger isfitted in the Prius Plug-in Hybrid.
Core Components for Drive Systems
Toyota Industries applied its proprietary direct-coolingmethod to develop a device with significantly higher
cooling performance. We have entered the field of corecomponents for drive systems such as power control units(PCUs) for the third-generation Prius.

36

Although orders for logistics services declined
due to selling our shares in the logistics service
subsidiary Mail and e Business Logistics
Service Co., Ltd. in May 2011, orders for landtransportation services for automotive parts
increased. As a result, net sales in fiscal 2013
remained on par with the previous fiscal year at¥93.0 billion.

	Accelerating Development Activities to
Realize Low-Carbon Society
Demand for environment-friendly products with highenergy efficiency is expected to increasingly grow, with thetrend toward electrification likely to expand not only for
automobiles but also for such non-automotive products asmaterials handling equipment. Enhancement of thecharging infrastructure will also take a greater role inpromoting the spread of PHVs and EVs.
Targeting the high-growth, electric-powered vehicle
market, we will accelerate development of technologies
and products in the fields of auxiliary power source
devices, core components and systems for drive systems
and charging infrastructure, thereby making a significant
contribution to the realization of a low-carbon society.

Toyota Industries operates distribution centers for various
industries and customers. During fiscal 2013, operation ofexisting distribution centers generated a relatively steadylogistics volume. We continued to promote improvement
activities at logistics sites based on the thinking embodied
in the Toyota Production System (TPS) to enhance thelevel of services to customers and strengthen our profit
structure.
With an aim of optimizing the entire supply chain ofeach customer, we continued our proactive sales activities
by making proposals that leverage the maximum use of
the Toyota Industries Group’s hardware and software
capabilities. As a result, we successfully obtained four neworders for the consigned operation of distribution centers.
Looking ahead, we will continue to facilitate ourproactive sales activities for both increasing orders fromour existing customers and acquiring new customers inindustries having high growth potential.

automobile industry declined temporarily due in part to thediscontinuation of the Japanese government’s subsidy
program for eco cars, an upturn in transportation volume
occurred rather quickly, keeping pace with economic
recovery in Japan.
Under these circumstances, we continued our profit
improvement activities by promoting efficient cargotransport while aggressively undertaking activities toensure safe and environment-conscious operations.
While doing so, we have been pushing ahead with theestablishment of a flexible business structure adaptable toa shift in automobile production locations within Japan.
As part of this effort, we opened the Tohoku Distribution
Center in Miyagi Prefecture in October 2012.
We will continue to improve the level of logistics
services to our existing customers and further reinforce
our sales activities to capture new customers.

	Land Transportation Services
The Taikoh Transportation Group provides landtransportation services under consignment from many
automotive parts manufacturers. The group collects
finished parts from manufacturers, compiles them by theirdestination and delivers to automakers “what is needed,when it is needed and in the quantity needed.”In fiscal 2013, although transportation volume in the
Taikoh Transportation’s Tohoku Distribution Center

Toyota Industries Report 2013

Automobile/Logistics

Toyota Industries develops and produces electronic
components and devices for electric-powered vehicles,
including HVs, plug-in hybrid vehicles (PHVs) and EVs. In
addition to expanding sales to TMC, we are pursuingbusiness development with automakers in and outside
Japan.

37

Textile Machinery	High Value-Added Services Including
Cash Collection and Delivery and Cash
Proceeds Management and Data Storage,
Management, Collection and Delivery

Based on the philosophy of founder Sakichi Toyoda, which reflects his strong commitment to manufacturing,
Toyota Industries responds to a broad range of needs with its extensive product lineup, from air-jet looms,
for which we enjoy the top global market share*1 in unit sales, to spinning frames and roving frames.
*1: Survey by Toyota Industries Corporation

Business Overview in Fiscal 2013

■ Air-Jet Loom Sales(Thousand units)

8
6

Logistics/Textile Machinery

In the textile machinery field, sluggish market
conditions caused unit sales of air-jet looms todecline 600 units, or 11%, from the previous
fiscal year to 4,600 units. Net sales, on the other
hand, were up ¥1.4 billion, or 4%, over theprevious fiscal year to ¥39.9 billion in conjunction
with making Swiss-based Uster Technologies AG
a Toyota Industries subsidiary in February 2012.

enables the weaving of fabrics with complex patterns.
In the field of spinning machinery, Toyota Industries
and Truetzschler GmbH & Co. KG, a German
manufacturer of spinning machinery founded in 1888,
co-developed the TCO 12 comber*3. Combining Toyota
Industries’ weaving machinery technology and know-how
accumulated over the years and Truetzschler’s spinningmachinery technology and expertise which have earned
high acclaim among customers worldwide, the newcomber provides improved yarn quality as well as excellent
stability during high-speed operation. We are confident
that this product will bring greater satisfaction to ourcustomers.
We will also accelerate our R&D activities to create
innovative weaving and spinning machinery by leveraging
Uster’s world-class sensor technology and information
processing technology.

Business Activities

Cash Collection and Delivery and Cash Proceeds
Management
Asahi Security Co., Ltd. provides cash collection anddelivery and cash proceeds management services
throughout Japan on a 24/7 basis to about 2,550
customers mainly in the retail sector, service industries,
post offices and financial institutions.
In addition to cash collection and delivery services
tailored to each customer’s specific needs, Asahi Security
offers comprehensive services that include managementof gift certificates and accounting operations at customers’
retail outlets. Furthermore, the company provides security
services integrating the monitoring by security devices anddispatch of security guards on a 24/7 basis.
In September 2012, Asahi Security opened a cash
collection and delivery center in Miyakojima Island,
Okinawa Prefecture. With 19 cash collection and delivery
centers and 10 logistics sites throughout Japan, thecompany is reinforcing its nationwide service and support
networks.
At each business base, Asahi Security conducts
regular training on its own as well as emergency training
jointly with local police departments in order to provide
safe and trusted services to customers.
By providing these comprehensive services, Asahi
Security aims to become a unique, distinctive company inthe field of cash collection and delivery and cash proceeds
management services.

Data Storage, Management, Collection and Delivery
Wanbishi Archives Co., Ltd. provides support to about 4,000
companies and organizations, including large financial
institutions and government agencies, to ensure the security
and efficient use of their information assets. Under its robust
security structure, Wanbishi Archives offers a comprehensive
range of services covering the entire lifecycle of criticalinformation assets, from storage and utilization todestruction. Wanbishi Archives also offers high value-added
services in its outsourcing business, such as digitizing paper
documents, by being closely involved in customers’
business processes.
In the wake of the Great East Japan Earthquake that
occurred in 2011, there has been a growing recognition of
the need to implement appropriate business continuity
management (BCM). Wanbishi Archives offers a range ofsolutions matched to customers’ needs, from selecting
documents that are essential in ensuring business continuity
and promoting centralized management of information
assets to building a structure to securely store and restore
backup data.
In addition, Wanbishi Archives is offering cooperation for“Michinoku Shinrokuden,” an archiving project led by theInternational Research Institute of Disaster Science of
Tohoku University for compiling information on the 2011
Great East Japan Earthquake, and in October 2012 began
to undertake long-term, remote storage of importantearthquake records and important data accessible to future
generations.
Outside Japan, Wanbishi Archives’ subsidiary in China
has relocated and upgraded its information management
center for achieving greater safety and security. Capitalizing
on its experience and know-how accumulated in Japan,
Wanbishi Archives provides support to companies andorganizations doing business in China to ensure the security
and efficient use of their information assets. Through such
efforts, Wanbishi Archives is actively pursuing business
opportunities in growth markets.

*2: Survey by Toyota Industries Corporation*3: A machine used in the spinning process, which uses a comb-like device to remove
short fibers and impurities to improve quality of the resulting yarn

4
2
0

(FY)

09

10

11

12

13

	Further Enhancing Product Appeal

Asahi Security Co., Ltd.’s cash collection and delivery andcash proceeds management services
Wanbishi Archives Co., Ltd’s data storage, management, collection anddelivery services

38

In the field of weaving machinery, we remodeled our widelyused JAT710 air-jet loom, which boasts the top global
market share in unit sales and is highly recognized bycustomers for its outstanding performance and reliability.
We plan to commence production of a new model, theJAT810, in August 2013. To meet the growing need forhigher energy efficiency, the JAT810 isequipped with our newly developed
weft yarn inserting system that
reduces the amount of air required tocarry the weft yarn by 20%*2
compared with the conventionalmodel, offering unparalleled energysaving performance. Its productivity
has also been improved with theintroduction of a higher-speed
electronic shedding device thatTCO 12 comber

JAT810 air-jet loom equipped with the optionally available electronic shedding device
Toyota Industries Report 201339	Participation in ITMA ASIA + CITME 2012
and INDIA ITME 2012
In 2012, Toyota Industries participated in textile machinery
trade shows held in China and India, two of the world’s
largest textile markets.
In June, ITMA ASIA + CITME 2012 was held in
Shanghai, China, with 1,283 companies participating from28 countries and the attendance of more than 92,000
visitors. At this exhibition, we displayed and demonstrated
our new JAT810 air-jet loom, the TCO 12 comber jointly
developed with Truetzschler and the RX300 high-speed
ring spinning frame capable of producing value-added
special yarns.
At INDIA ITME 2012 held in Mumbai in December,
773 companies from 27 countries participated andapproximately 80,000 visitors attended. We ran a joint

booth with Kirloskar Toyota Textile Machinery Pvt. Ltd.
(KTTM), a consolidated subsidiary in India, anddemonstrated actual operations of Toyota Industries’ new
JAT810 air-jet loom and KTTM’s RXI240 ring spinning
frame and FL200 high-speed roving frame.
At both events, we received favorable feedback frommany customers mainly from China and India.
We will continue to appeal our excellent technologicalcapabilities and environmental performance in our efforts
to earn a higher level of customer trust. We also aim tomeet customer expectations by developing textile
machinery that produces even higher value-added textile
products through the pursuit of advanced technologies
and continuous creativity and ingenuity as well as byproviding meticulous after-sales services via an enhanced
service structure.

Toyota Industries Report 2013

Corporate Social Responsibility
Corporate Governance40

Toyota Industries Report 2013

INDIA ITME 2012

INDIA ITME 201243− 49PP

42
50

51− 52

Relationship with Our Business Partners

P

53

Relationship with Our Shareholders and Investors

P

54

Relationship with Our Local Communities

ITMA ASIA + CITME 2012P

Relationship with Our Customers
Relationship with Our Associates

ITMA ASIA + CITME 2012P

CSR PolicyP55− 5641

CSR Policy

Corporate Governance

Based on the CSR Policy formulated with the aim of realizing the Basic Philosophy that carries on the spirit offounder Sakichi Toyoda, the Toyota Industries Group contributes to the harmonious and sustainable developmentof society and the Earth.

As a global company operating in various countries and regions, Toyota Industries seeks efficient management
while maintaining and enhancing the fairness and transparency of its corporate activities.

■ CSR Areas

CustomerFirst
SocialContributions

Environmental
Conservation

Respect for
Employees

Contributing to Sustainable
Development in Harmony
with Society and the EarthFair andTransparent
Business
Activities

ComplianceManagementof Confidential
Information

42

Toyota Industries Report 2013

Safety and
HealthTimely andProper
Disclosure

Preamble• We contribute to the harmonious and sustainable developmentof society and the Earth.
• We comply with local, national, and international laws andregulations as well as the spirit thereof.
• We believe that management interacting with its stakeholders isof considerable importance.
• We expect our business partners to support this initiative andact in accordance with it.
Customers• Based on our philosophy of “Customer First,” we provide
innovative, safe, and high-quality products and services.
• We endeavor to protect the personal information of customers
and everyone else with whom we are engaged in business, inaccordance with the letter and spirit of each country’s privacy
laws.
Employees• We respect our employees and encourage personal growth forour employees.
• We support equal employment opportunities and diversity forour employees and do not discriminate against employees.
• We strive to provide fair working conditions and to maintain asafe and healthy working environment for all our employees.
• We respect and honor human rights and do not use or tolerate
any form of forced labor or child labor.
• Through communication and dialogue with our employees,
we build and share the value of “Mutual Trust and Selfresponsibility.”• The management of each company takes leadership in
fostering an ethical corporate culture.
Business Partners• We respect our business partners and work to realize mutual
growth based on mutual trust.
• Whenever we seek a new business partner, we are open to any
and all candidates, regardless of nationality or size, and evaluate
them based on their overall strengths.
• We maintain fair and free competition in accordance with theletter and spirit of each country’s competition laws.
Shareholders• We strive to enhance corporate value for the benefit of ourshareholders.
• We provide timely and fair disclosure on our operating results
and financial condition.
Global Society/Local Communities[Environment]• We strive to develop, establish, and promote technologies
enabling the environment and economy to coexist
harmoniously. We work to reduce the effect of climate change
and preserve biodiversity.
[Community]• We operate our business so as to earn the trust of respective
communities.
• We pursue safer, cleaner technologies that meet the evolving
needs of society.
• We do not tolerate bribery and maintain honest and fairrelationships with government agencies and public authorities.
[Social Contribution]• We actively promote and engage in social contribution activities
that help strengthen communities and contribute to theenrichment of society.

Basic Perspective of Corporate Governancemanagement policies, medium-term business strategies
and major investments.
Toyota Industries has a divisional organization system,with significant authority delegated to each businessdivision. For especially crucial matters, however, we haveestablished the Business Operation Committee to enable
the president to meet with the heads of each businessdivision regularly to monitor and follow the status of theirbusiness execution. At meetings of the Management
Council, directors, managing officers and audit &supervisory board members convene to report andconfirm the monthly status of business operations andshare overall deliberations at Board of Directors meetingsand 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 CSR, the environment, humanresources development and export transaction controls.
These functional meetings and committees discuss
important matters and action themes in respective areas.

Toyota Industries strives to enhance the long-term stabilityof its corporate value and maintain society’s trust by
earnestly fulfilling its CSR commitments in accordancewith its Basic Philosophy.
To that end, Toyota Industries strives to enhance its
corporate governance based on the belief that maintaining
and improving management efficiency and the fairness
and transparency of its corporate activities is of utmost
importance.

Corporate Governance StructureImplementation Structure
Toyota Industries convenes monthly meetings of the Boardof Directors to resolve important management matters andmonitor the execution of duties by directors. We also
appoint outside directors who are knowledgeable about
our business operations. They attend meetings of theBoard of Directors and give opinions and ask questions as
deemed necessary. Through this supervisory function ofoutside directors, we ensure the legality and validity of theBoard’s decisions as well as directors’ execution of duties
from an objective perspective. The Management
Committee, which is composed of directors above theexecutive vice president level as well as relevant directors,
managing officers and audit & supervisory board
members, deliberates on a variety of issues concerning
important management matters such as corporate vision,

Audit & Supervisory Board System
Toyota Industries has adopted an audit & supervisoryboard system. Two full-time audit & supervisory board
members and three outside audit & supervisory board
members attend meetings of the Board of Directors tomonitor the execution of duties by directors. At the same

Shareholders’ Meetings
Selection/
Dismissal

Selection/
Dismissal

Selection/
Dismissal

Reporting
Cooperation

Audit &
Supervisory Board

Independent Auditors
Board of Directors

Reporting
ReportingAppointment/
Monitoring

Monitoring
Monitoring

Discussion/
Reporting

Audit &
Supervisory
Board
OfficePresident
Directives

Directives

Accounting
Audit

(

Management
Committee
Deliberates on importantmatters frommanagement’s perspective

Directives

Business Operation
Committee

Management
Council

Follows up on theexecution ofbusiness operations

Reports on andconfirms execution ofbusiness operations) (Discussion/
ReportingDirectives) (ReportingDirectives

ReportingCommittees*
Functional
Meetings*2

Reporting(monthly)

Policies

Directors/Managing Officers
Business Divisions/In-House Company/Departments
Subsidiaries/Affiliates(As of March 31, 2013)

Reporting*2: Functional
Meetings

CSR

Human Resources

Environmental

Quality

Human Resources
Development
Export Transaction
Controls

Monitoring

Safety and Health1)

Reporting*1: Committees

CSR Policy/Corporate Governance* Chaired by the president, the committee convenes twice per year and consists ofdirectors, managing officers and audit & supervisory board members.

Toyota Industries Group CSR Policy (Summary)Corporate Social
Responsibility

Guided by a strong ambition to “contribute to society andthe world through monozukuri (manufacturing),” Toyota
Group founder Sakichi Toyoda devoted himself to “endlesscreativity, inquisitiveness, and the pursuit of improvement”
and made various inventions including the non-stop
shuttle-change Toyoda Automatic Loom, Type G. The
spirit of Sakichi is enshrined in the Toyoda Precepts,
formulated in 1935 and passed down today in our Basic
Philosophy, which we established in 1992 and revised in
1998. (See the inside cover of this report for details.)
The business environment surrounding Toyota
Industries is continuing to evolve rapidly and dramatically.
Regardless of changes in the business environment andvalues, we remain unchanged in our belief that realizing
our Basic Philosophy is the cornerstone of the Toyota
Industries Group’s corporate social responsibility (CSR).
Acting on this belief, in March 2009 we formulated andimplemented the Toyota Industries Group CSR Policy,
which clarifies our relationships with stakeholders, namely
customers, employees, business partners, shareholders
and local and global communities.
The CSR Policy is divided into nine areas, and the CSR
Committee* confirms and evaluates the implementation
status of this policy and promotes CSR activities.

Production

Procurement

Audit Dept.

Internal Reporting
Reporting
Audit

Emergency Profit
Improvement

Technologies

These entities deliberate and follow up on issues inrespective areas.
Emergency Profit Improvement Committee
In response to the rapid downturn in our businessenvironment, Toyota Industries has established the Emergency
Profit Improvement Committee on December 1, 2008
(renamed the Profit Improvement Committee since June 13,2013) directly under the president. We have been carrying out
profit improvement activities throughout the Company via
different subcommittees.

43

time, meetings of the Audit & Supervisory Board are held
once a month to discuss and make decisions onimportant matters related to auditing. The full-time audit &supervisory board members carry out auditing byattending primary meetings and receiving reports directlyfrom directors. Additionally, we have assigned dedicatedpersonnel, while audit & supervisory board members
monitor the legality and efficiency of management throughcollaboration with independent auditors and the Audit
Department.
As a publicly listed company, Toyota Industries strives
to ensure the fairness and transparency of management.
Following the Securities Listing Regulations stipulated
respectively by the Tokyo Stock Exchange, Osaka
Securities Exchange and Nagoya Stock Exchange, we
designated as independent auditors two outside audit &supervisory board members who have no conflicts ofinterest with our shareholders to further enhance ourcorporate governance.

4

3

Checking
andMonitoring

Thoroughly
Informing
Employees

CSR selfassessment

Education on
relevant laws
and regulations

Audit

2

1

Rules/
Policies

Leadership/
Organization

Conduct
guidelines

Declaration by
the presidentInternal rules

Compliance
Committee

Manuals(2)	A compliance committee was set up at the European
headquarters for the materials handling equipment
business. The committee took the initiative in holding
compliance training targeting heads of eachsubsidiary under
the primary controlof the regional
headquarters inorder to strengthen
activities throughout
Europe.
Compliance training*As of March 31, 2013 ormulation of Code of Conduct andF
Dissemination

 stablishment and Reinforcement ofE
Implementation Organization
To promote compliance throughout the Toyota Industries
Group, we have established the Compliance
Subcommittee (led by executive vice president in chargeof administration*) as a subordinate organization to the

Toyota Industries has formulated the Code of Conduct,
which serves as conduct guidelines that should beobserved by employees, and distributed a portable version
to every employee.
At consolidated subsidiaries worldwide, complianceofficers (outside Japan) and compliance committees(in Japan) take the lead in formulating, delivering to andeducating employees on their own Code of Conduct
matched to their respective business lines and corporate
cultures. Toyota Industries’ 32 consolidated subsidiaries inJapan and 57 consolidated subsidiaries outside Japan
have already created their own Code of Conduct and havebeen working to instill an awareness among theiremployees.

 horoughly Informing Employees about
T
Applicable Laws and Regulations
Toyota Industries provides compliance education to alllevels of employees. This includes providing required legal
knowledge to employees according to their job ranks orpositions, familiarizing them with the emergency
procedures that should be followed upon the occurrenceof a problem and educating them on risk management.
To new or young employees, in particular, we provide
easy-to-understand guidance on “what to do” and “whatnot to do” in order to instill compliance awareness basedon laws and corporate ethics, using our Code of Conduct
as an instructional material.
In order to provide effective education, we devise

Independent
auditors’internal
control report

Corporate GovernanceToyota Industries Report 2013

Annual financial report

44Four Pillars of Compliance Activities
We believe that compliance means both adhering to laws
and regulations and observing ethics and social norms.
In order to ensure compliance, it is vital that we raise theawareness of each and every employee.
Under the strong leadership of top management, we
promote compliance throughout the Toyota Industries
Group, including consolidated subsidiaries in and outside
Japan, by formulating a Code of Conduct and thoroughly
informing employees together with checking andmonitoring compliance.

■ Compliance Officers (outside Japan) and Compliance Committees (in Japan) (As of March 31, 2013)
Regional
Representativecompliance officer
for Europe■ Organization for Promoting Compliance

AndreasLundh

CSR Committee

Europe: 36 companies
Give directives

North America:
12 companies

Asia: 12 companies

Compliance Subcommittee
Internal control report

Audit on internal controls by independent auditors(1)	Holding four meetings a year, the Compliance
Subcommittee compiled and reviewed cases of law
violations within the Toyota Industries Group andmeasures taken to prevent recurrence as well as
worked to improve the level of management byencouraging information sharing among the Group
companies.

Report activities■ Internal Control Assessment System (Based on J-SOX)

Detection ofCompliance■ Code of Conduct at Various Subsidiaries

Corporate Social
Responsibility

In accordance with the Corporation Law of Japan, 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 ofbusiness operations after giving consideration to eachbusiness segment’s annual policies and day-to-day routine
management. The CSR Committee, at its meeting held inMarch, assesses the progress made in implementing the
Basic Policies in the year under review and determines
actions for the coming year, including reviewing theimplementation structure and enhancing 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
an internal control system to maintain the reliability offinancial reporting. The system’s status and progress arereviewed by the Audit Department and audited byindependent auditors. We determine which Toyota Industries
Group companies fall within the scope of J-SOX based on
the degree of impact on the reliability of financial reporting.

Improvement of insufficiencies Review of internal
controls byinternal controls
Audit Department

CSR Committee. Every year, the subcommittee formulates
an action policy and conducts follow-up checks on its
progress on a quarterly basis.
In fiscal 2013, we worked to strengthen complianceinitiatives throughout the entire Toyota Industries Group.

■ Four Pillars of Compliance Activities

Internal Control System

Internal control activities undertaken by eachdepartment and consolidated subsidiary(Establishment and operation of internal controls)

We determined that our internal controls over financial
reporting as of the end of fiscal 2013 are effective, andaccordingly, submitted an Internal Control Report in June
2013. The report was reviewed by independent auditors
and judged fair in their Independent Auditors’ Report.

Departments in charge of legal compliance: 12
supporting department: 1

Japan: 33 companies

Compliance officer
in South America

Edson
Masayuki
UhiedaRegional
Representativecompliance officer
for North America

Timothy A.
BarkerToyota Industries
Corporation

Consolidated
subsidiaries in Japan

Consolidated
subsidiaries
outside Japan

Compliancecommittees

Complianceofficers

Compliance officer
in India

T R Nagaraj

Australia: 1 company

South America:
3 companies

45

■ Compliance Education Provided

Management of Confidential Information

Toyota Industries
Executive training

Rank-based (clerical, technical)
Training by function

Training for affiliated companies

Conducted training for newly appointed executives and legal seminars for executives

Ongoing initiative

Promoted training on quality, safety, the environment, labor, management of confidential
information, export transactions, subcontracting and the Competition Law★9,200 employees★8,200 employees★5,400 employees
participatedparticipatedparticipatedOngoing initiative

Promoted group training via executive training seminars, subcontractor safe work training
and public relation division training, and through visits to dealers★1,400 employees★1,800 employees★1,700 employees
participatedparticipatedparticipatedOngoing initiative

Consolidated subsidiaries
in Japan

Conducted training on the
Code of Conduct, safety, etc.

Not surveyed★11,700 employees
participated★16,100 employees
participated

2012

2013

2011

ス
ン
ア
イ ！
げ
ラ
防
プ
を
ン
反
違

見逃すな！
コンプライアンス違反

ウイゾプラ
コン 参 上コ

Ongoing initiative「インサイダー取引 」を見逃すな！

コンプライゾウ

登場人物※1

Checking and Monitoring Compliance

1 おう！ 久しぶり！

A社のエリート様のお出ましだ！

〇〇高校
同窓会

久しぶり
だな！

2
本当かよ！
すごい
ニュースだな！

自宅にて
実はここだけの話だけど、 3
近々ウチの会社がライバル会社B社をそうだ！今のうちに※2
買収するんだよ。
A社とB社の株を買っておけば大儲けできるじゃん!?

あいつ
景気良さそうだったな。

■ Pamphlet regarding Compliance Hotline

コンプライアンスをわかりやすく解説してくれる勇気あふれる忍者※1 ある会社の株価に影響のある未公開情報を知った人が、その会社の株式の売買を行うこと ※2 自社の機密情報を漏らすことはコンプライアンス違反。罰せられる場合もあります4
よしよし、とりあえずB社の株から買うか 。

注文

5

インサイダー
取引は許しませぬぞ。

ERROR!!

6

コ、コンプライゾウ!?

この情報を僕がどこから得たかなんて誰にもわからないよ。
それに僕1人くらいの取引高なんてタカが知れているし、影響はないよ！

7

インサイダー取引は必ずバレるでござる！
！
それにルール違反を許したら、公正な株取引ができなくなるであろうが！
！

すみません
でした。

ほほー

インサイダー取引は簡単に発覚し、厳しく罰せられます。
インサイダー取引は、証券取引等監視委員会が、未公開情報公開前後の売買状況をきめ細かく監視しているため、「ばれないだろう」はまず通用しません。また、規制を知らず当人に悪意がなくても違反となります。インサイダー取引をすると利益を得たか否かにかかわらず、懲役・罰金刑などが課せられます。未公開情報を知った際には、当該会社の株式の売買をしない、家族や知人にも話さない、ということを徹底してください。

インサイダー取引防止マニュアル

イ

ア

ス
ン
げ！

http : //home.toyota-shokki.co.jp/130：法務/
010：法務/ホームページ/insider_frame.html

インサイダー取引防止事務局

企業倫理相談窓口（相談無料）

第7回

相談方法：電話、電子メール、手紙

中山弁護士
加藤法律事務所【担 当】【連絡先】 電話：052－973－3415
1 （24時間・不在時は留守電へ）
2
ちょっと【メール】 shokki_helpline@nba.tcp-ip.or.jp
このインパクトレンチの調子が悪くて。
あ、そっか。
19日までに修理お願いできる？
【住 所】 名古屋市中区丸の内3丁目20番地6号豊友ビル6F

・匿名でかまいません ・相談者の氏名など秘密は守ります

組長、
注文したらすぐに注文書を出さないといけないのでは？

3

納品日

コンプライゾウ

登場人物「 下請法違反」を見逃すな！

相談方法：電話、電子メール

注文書もありがとうございました。
ばっちり直りましたので。
ん？ あれ？

■ Crisis Response Manual■ Poster for Confidentiality Management Month

社員の皆さんに、コンプライアンスへの理解を深めていただくため、毎号、日常で起こりやすいモラル違反を含むコンプコンプライアンス上の問題について上司などに相談できない場合、下記窓口にご相談ください。
ライアンス上の問題を紹介します。この機会に自分自身の行動を振り返り、コンプライアンスについて勉強しましょう！

【担 当】コーポレート・センター 法務部【連絡先】外線：0566－27－5107 内線：70－2545【メール】 insider-jimukyoku@mm.toyota-shokki.co.jp

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 toquality, 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 theEnvironmental Committee. At the same time, functional
departments at the Head Office such as those responsiblefor quality, safety and the environment formulate rules andregulations 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 ofrisk management at each business division andconsolidated subsidiary.
Our Crisis Response Manual provides specificexamples of significant risks and lays out basic rules forappropriate decisions and actions when a risk becomes
evident or a major problem occurs. This manual is
distributed to executives and those in managerial positionsof Toyota Industries as well as to top management at
consolidated subsidiaries as a means of facilitating risk
management as the Toyota Industries Group.

*1: As of March 31, 2013
*2: Head of each department*3: A person within the department, appointed by the head

見逃すな！
コンプライアンス違反

ウイゾプラ
コン 参 上ラ
インサイダー取引規制について詳しく知り
防プをン
たい場合、インサイダー取引に該当するか
反コ
違な？ と思った場合は法務部ホームページ
でマニュアルを確認してみよう！

(FY)

In order to monitor the status of compliance, we request
internal departments and our consolidated subsidiaries inand outside Japan to perform a compliance self-assessment.
Toyota Industries’ subsidiaries answer a checklist
comprised of 60 to 250 items defined for each of theapplicable laws. If any of these items are found to be
insufficient, each responsible department and respective
subsidiaries work together to make improvements.
We also operate a compliance hotline that allows
employees and their families to seek advice oncompliance-related matters without being exposed tonegative consequences, as well as to make adequate
responses. This compliance hotline is cited in our Code of
Conduct, and we regularly hand out a pamphlet tosubsidiaries’ employees to inform them of the service.

社員の皆さんに、コンプライアンスへの理解を深めていただくため、毎号、日常で起こりやすいモラル違反を含むコンプ
ライアンス上の問題を紹介します。この機会に自分自身の行動を振り返り、コンプライアンスについて勉強しましょう！

第6回

2014

Corporate Governance■ Internal Newsletters

Implementation Structure
Toyota Industries has set up the Information Security
Subcommittee (led by a director in charge of generaladministration*1) as a subordinate organization to the CSR
Committee to promote proper management of confidential
information, taking appropriate actions against the leakageof confidential information and complying with the Unfair
Competition Prevention Act and the Personal Information
Protection Law.
To thoroughly implement the initiatives adopted by thesubcommittee, we appoint information security
managers*2 and information security administrators*3 ateach department. We strive to raise awareness about
information security among their staff by holding
workplace meetings and conducting self-checks regarding
their information security practices.
Examples of such activities include requiring
employees to obtain permission when taking their PCs off
the premises, taking antitheft measures for PCs, restricting
the copying of electronic data on recording media,
monitoring email correspondences and regularly reviewing
rules for management of confidential information.
In addition, we collaborate with other Toyota Group
companies to carry out “All Toyota Confidentiality
Management Month” activities in May and October. As
part of this effort, we are working to discourage and monitor
unauthorized carrying out of PCs and recording media.
Our consolidated subsidiaries in and outside Japan
also appoint respective information security managers andinformation security administrators. We also haveformulated common guidelines concerning managementof confidential information and follow up on their activities
on a periodic basis.

Basic Perspective
Based on the Basic Policies for the Establishment of anInternal Control System, which was set up by the Board of
Directors in May 2006 in compliance with the Corporation
Law of Japan, Toyota Industries is working to strengthen
regulations and a structure to promote risk management.
We regard the following two aspects as the basics of risk
management.
(1)	Incorporating measures to prevent and reduce potential
risks into daily routines and following up on the
progress of implementation(2)	Ensuring quick and precise actions to minimize theimpact on business and society when a risk becomesapparent

Corporate Social
Responsibility

various ways to actively engage employees. For example,
lectures are interactive and participatory, featuring group
discussions to deepen the level of understanding among
participants. We also survey participants’ needs (questions
and concerns) beforehand and offer lectures in responseto these needs, thereby raising the degree of usefulness
and satisfaction of compliance education.
In order to cultivate a deeper understanding ofcompliance among employees, we introduce cases ofpossible compliance violations in monthly internal
newsletters, providing commentaries on problem areas
in detail.

Basic Perspective
Toyota Industries recognizes that the personal informationof customers, employees and business partners as well as
information concerning our technologies and sales
activities are assets that need to be protected. Acting on
this belief, we are making our utmost efforts to safeguard
confidential information and strengthen its management as
one of the CSR areas.

Risk Management

コンプライアンスをわかりやすく解説してくれる勇気あふれる忍者

4
あっそう。
わかった。

すみません、
ちょっと納品書を忘れてしまって。
支払いは遅くなっていいので来月持ってきます。

15

はい、大丈夫です。

5

モノを受け取っているのに受入処理しなくていいのですか？

6

7
依頼したモノやいいはずがないでござる！
サービスを受け取った下請法違反になるでござるぞ！
！
時点から60日以内に支払わなければならないでござる。
納品書がなくても受け取った月内に受入処理しないと支払いが遅れ、下請法違反になるでござるよ※。

ん？ いいんじゃない。
相手がいいって言ってるし。
納品書忘れる方が悪いしね。

知りませんでした。
気を付けます。

ええ！ 相手の了解があるのに！？

※当社のシステム上、支払いは受入処理をした月の翌月末払いのため、処理が遅れてしまうと支払いが受け取りから60日を超えてしまう恐れがある

頼んだ物を受け取ったら、すぐに受入処理しないとダメ！
大企業と小さな企業 ※の間の「適正な取引の実現」と「小さな企業の利益の保護」を目的として、「下請代金支払遅延等防止法（略称：下請法）」
が制定されています。下請法では、「物を発注した際には注文書を発行す 下請法のポイント（以下資料の3 ～ 5ページ参照）
ること」や「物を受け取った日から数えて60日以内に定めた支払い期日までに下請代金全額を支払うこと」が義務付けられており、たとえ納入業者
が「翌月でも良い」と了解していたとしても、当社のシステム上、受け取った月に処理しないと支払い遅延が発生し、法違反となります。
※当社だと資本金3億円以下の企業が該当する

コンプライアンス上の問題について上司などに相談できない場合、下記窓口にご相談ください。

46

下請法相談窓口

Toyota Industries Report 2013

企業倫理相談窓口（相談無料）

相談方法：電話、電子メール

相談方法：電話、電子メール、手紙

【担 当】
【連絡先】
【メール】

【担 当】
【連絡先】
【メール】
【住 所】

中山弁護士

・匿名でかまいません ・相談者の氏名など秘密は守ります1747 esponse to a Possible Large-ScaleR
Earthquake
Toyota Industries considers the occurrence of a major
earthquake in Japan as one of the most significant risks.
To ensure adequate Company-wide response when an
earthquake occurs, we define disaster prevention measuresin the three areas of mitigation, initial response to be taken
immediately after the disaster and restoration of production.
In addition, we focus our disaster prevention measureson the three basic policies of placing maximum priority on
human life, placing top priority on the recovery of local
communities and ensuring the quickest possible recovery.
In fiscal 2013, we sought to further strengthen disasterprevention measures, which were revised after reviewing
the lessons learned from the Great East Japan
Earthquake. Specifically, we upgraded disaster prevention
drills at each plant, established a disaster prevention
organization that oversees Company-wide initiatives andsimulated responses in the event of a disaster.

Implementation Structure

Meetings of Disaster and Fire
Prevention Council (twice/year)

Chairman: Central general safety andhealth supervisor(Executive Vice President)

Meetings of Disaster Prevention
Measures Promotion Council(six times/year)

Chairman: Head of the General Affairs Department(Head Office)*

Workshop activity

2 Initial Response
1) Initial Response Procedures
Placing maximum priority on the protection of human life,
we formulated and disseminated initial response
procedures to be followed by employees immediately aftera disaster.
2) Safety Confirmation System
Since July 2011, we have operated a safety confirmation
system to account for employees and their families in caseof an earthquake. When an earthquake with a magnitudeof 5 or greater occurs, this system automatically sends
email messages to employees’ cell phones and otherdevices, to which employees send replies together withinformation on their safety status.
3) Disaster Drills(a) Upgrading Disaster Drills
We set up a new disaster prevention organization withclearly defined functions and roles at each plant andbase. In addition to conventional disaster drills, we
conducted more practical drills centered ontransportation and rescue of injured persons.

Lecture on disaster prevention

We also set up a disaster prevention corner at suchcompany events as Toyota Industries’ annual Aozora
Ichiba cross-organizational exhibition in an effort to share
best practices for improvement and a variety of otherinitiatives undertaken at each Group company as well as
the Shokki Festa, a festival for promoting interaction withlocal communities. Through such initiatives, we sought toinstill a higher awareness in and encourage each
employee to take stronger disaster prevention measures
not only at work but also at home.

Admin Office
Aozora Ichiba
Drill for rescuing injured persons

Mitigation WG(once/month)

InitialResponse WG(once/month)

Production
Restoration WG(once/month)

Procurement
WG(twice/month)Business
Continuity WG(once/month)*As of March 31, 2013

Primary Measures for Disaster Prevention
1 Mitigation Measures

Activities in this area primarily focus on disaster prevention
measures concerning equipment and other devices toprotect the lives of employees.
1) Equipment
We developed quake resistance standards for equipment
within plants and implemented measures to avoid turningover, falling and sudden sliding of equipment.

(b) Drills at Disaster Prevention Response Headquarters
We conducted drills at the disaster prevention response
headquarters, which coordinates Company-widemeasures in the event of a disaster. We simulated
responses assuming a scenario from the occurrence ofan earthquake to restoration activities, and reaffirmed
response procedures and the division of roles. We seek
to elevate the level of our response in both emergency
and normal situations.

Drills at the disaster prevention
response headquarters

48

Toyota Industries Report 2013

Drill for initial firefighting

Shokki Festa

3 Restoration of Production
To meet the expectations of society and customers in andoutside Japan, Toyota Industries has been implementing
measures to quickly restore production operations.
Starting from fiscal 2011, we have been enhancing
function-based initiatives by setting up a Company-wide
Production Restoration WG. Since September 2012, theProcurement WG, which makes up the organizational
structure for promoting Company-wide disaster prevention
measures, has been working on initiatives concerning the
supply chain.
1) Initiatives Related to Organization and Personnel
Assignments(a) Organization for Restoration
We continued reviewing our organizational structure forrestoring production and clarified the roles andresponsibilities of each department. Anticipating
emergency situations and a prolonged restoration
period, we set up a structure in which two or more
responsible persons (leader and co-leader) areappointed at the Head Office and respective
departments in each business division.
(b) Responsible Personnel during Restoration
We have established a structure to quickly initiate
measures to restore production by selecting trained
persons capable of taking the lead in restoration
activities and making adequate responses at a place ofdisaster as well as restoration personnel having
appropriate experience, knowledge and skills.
2) Pre-Disaster Mitigation Measures
Each business division carries out Production Restoration
WG activities to promote pre-disaster mitigation measures.
Members from various departments tasked with restoringproduction participate to identify latent risks and issues
and engage in the following activities.
(a) Infrastructure Restoration
We are reinforcing facilities and equipment for such
utilities as electricity, gas and water as well as for
information systems, all of which are vital for restoringproduction, along with undertaking measures forvulnerable spots in wiring and pipework.
(b) Formulating Production Restoration Procedures
We have formulated production restoration proceduresfor the Company and individual business divisions. The
procedures lay out the target timeline for restoringproduction and clearly define implementation items andtime allocation for each item at departments tasked
with restoration work.
(c) Production Equipment
Upon clarifying production processes that should beprioritized for restoring production and identifying latentrisks and issues, we are considering methods ofrestoration and making a list of required materials andsupplies.
(d) Logistics
We are examining the infrastructures around each plant
and review the results to define safe logistics routes.
(e) Backup Logistics Support
We have clarified the division of labor andimplementation items among departments tasked with
providing production restoration support, including how
to obtain food and water, manage work shifts andclarify commuting routes.

Corporate Governance■ Structure for Promoting Disaster Prevention Measures4) Strengthening Activities to Raise Awareness for
Disaster Prevention
In July 2012, we invited a consultant to give a lecture on
disaster prevention for the members of the Disaster andFire Prevention Council, including executives, as well as
the personnel tasked with disaster prevention activities atconsolidated subsidiaries. Through the lecture,
participants reviewed Toyota Industries’ disasterprevention measures based on the lessons learned fromthe Great East Japan Earthquake.

Corporate Social
Responsibility

The Disaster and Fire Prevention Council devises overall
policies while the Disaster Prevention Measures Promotion
Council monitors progress. Specific measures areformulated and implemented by working groups (WGs)
consisting of members of the functional departments atthe Head Office and representatives from each plant.
So that Toyota Industries can carry on its businessactivities in the event of a disaster, since November 2012
two new WGs were added that specialize in procurement
and business continuity.

2) Buildings
We created a prioritized list of buildings requiring antiseismic treatment and have been carrying out
reinforcement work.
3) Prevention of Secondary Disasters
Through workshop
activities, we identify latentrisks of secondary
disasters, such as fire, ineach plant and conduct
risk assessment andprioritization.

Production restoration workshop(identifying risks and contemplating
countermeasures)

49

Relationship with Our Customers

Relationship with Our Associates

Adhering to a quality first approach, Toyota Industries strives to realize monozukuri (manufacturing) that quickly
responds to the diverse, ever-changing needs of customers.

Our ultimate goal is to create safe and healthy workplaces where each and every associate can exercise theirdiverse potentials and play active roles.

“ A product should never be sold unless it
has been carefully manufactured and has
been tested thoroughly and satisfactorily.”

Every year, we issue the Quality Guidelines, which identify
priority quality implementation items to all production
bases in and outside Japan. The progress made in
implementing these guidelines is reviewed at the Quality
Functional Meeting, which is chaired by the executive vicepresident in charge of quality control and attended by top
management, and through genchi genbutsu (go and see
for yourself) inspections. Issues raised through these
activities are followed up at meetings of the Companywide Council of Heads of Quality Assurance Departments
chaired by a quality control department head.
Aimed at preventing past serious quality issues fromrecurring, we have standardized implementation items toassure the quality levels throughout Toyota Industries andformulated the Quality Guidelines.

■ Types of Quality Sought by Toyota Industries

alit
y
qu
Pro
du
ct

●Safety●Eco-friendliness●Durability●Ease of use●Brand strength●Corporate image●Sales●Service●Workmanship

DesignqualityIn accordance with our fundamental policy of “creating
people capable of autonomously maintaining occupationalsafety and health,” Toyota Industries strives to prevent
industrial accidents and occupational disorders as well as
realize better work environments.
In fiscal 2013, we carried out activities under thefollowing two principal policies.
Create a Foundation for Realizing a Safety-Oriented
CultureAs part of associate safety education, we further enhanced
and upgraded our safety dojo in each plant and conductedtraining on basic procedures for safe operations.
To eliminate industrial accidents, we worked to further
raise safety awareness among associates while making
sure they consistently adhere to safe actions in their
immediate surroundings, including traffic rules within thecompany premises. With the cooperation of a third-party
auditor, we also reviewed and improved the system,
structure and thinking regarding our safety and healthactivities. Correspondingly, we surveyed the attitudes andactions toward safety among all associates from top
executives on down. Thereafter, those in managerial
positions conducted repeated and thorough discussions
based on the results and issued a declaration of safety,
which was disseminated throughout Toyota Industries via
safety and health meetings held at all workplaces.

Brand identity
Quality inspection by top management

Ensuring the Highest Quality
Placing top priority on our “Customer First” philosophy,
Toyota Industries undertakes product development thatmeets customer expectations.
At Toyota Industries, development of a new productentails defining specific goals to incorporate quality inevery stage from product planning and design to production
preparation, production, sales and after-sales services.
We perform a design review (DR), which allows a productto proceed to the next stage only when a responsible
business division head examines and approves whether
the product has reached the target quality level.
Should a defect occur after the product launch, thequality assurance departments of each business division
immediately devise necessary measures. At the sametime, a probable cause is identified from both technicaland structural aspects, and if deemed necessary, the new
product development system itself is reviewed to prevent
recurrence in subsequent models.

50

Toyota Industries Report 2013

In fiscal 2013, we carried out activities based on“accurately reflecting customers’ expectations for safety
and reassurance in our quality assurance system,” whichis stipulated as one of the priority items under the Quality
Guidelines.
Building on the activities we have undertaken to date,
we have formulated the Product Risk Assessment
Guidelines in order to incorporate measures to minimizerisks at the design stage based on the assumption that
customers make use of our products in diverse ways,
including the predictable improper use. We have alsocommenced product safety training for developers anddesigners and sought to raise the level of their skills toensure these guidelines are properly applied and productrisk assessment measures are strengthened even more.
In fiscal 2014, Toyota Industries will steadily implement
priority action items defined under the Quality Guidelines inand outside Japan, with the aim of improving the level ofcustomer satisfaction.

stipulated usage rules. In addition, we improved the risk
assessment method to avoid overlooking certain risks anda disparity in individual perceptions.
The safety standards also include prerequisites forpreventing equipment-induced fires for a higher level ofsafety and fire protection of machinery and equipment.

	Assisting Consolidated Subsidiaries inAchieving High Safety and Health Levels
We have been working with the relevant departments toprovide executive training, conduct genchi genbutsu
inspections and offer guidance to help consolidated
subsidiaries in Japan achieve high safety and health levels.
For our consolidated subsidiaries outside Japan,
we promote the sharing of such information as industrial
accidents, suggest measures to prevent similar accidents,
implement cross-deployment of safety dojos and provide
guidance through genchi genbutsu and activity support.

	Initiatives for Health Management andImprovement
As a task for the medium term, we are promoting associate
health improvement programs to counter risks associatedwith aging and greater stress.
Specifically, we proactively provide health guidance toprevent lifestyle diseases for persons with metabolic
syndrome and actively encourage follow-up after annual
health checkups. We also conduct periodic age-based
health education for all associates to maintain and promote
their health and wellness.
Mental health care activities include providing self-care/line-care education and setting up a health-related hotline.
We have also successfully worked to build closer
collaboration with external medical institutions and prevent
relapses by launching a return-to-work support program forpersons on long-term leave and conducting a survey on
workplace stress levels.

Discussion by those in managerial positions

Promote Fundamental Safety
In fiscal 2013, we focused on reviewing the safety
standards for both existing and newly installed machineryand equipment.
With regard to risk assessment, we thoroughly identified
and evaluated risks by specifying potential hazards during
the equipment design stage and established a system tominimize risk. After taking measures to minimize risks, we

Relationship with Our Customers/Relationship with Our Associates

ent
em
nag
lity
Ma lity
qua
ng
g
uri
qua
tin
act
rke
nuf
Ma
Ma alityquQuality levels that
customers truly
expect	Building a Safety-Oriented Culture that
Aims for Zero Industrial Accidents

Corporate Social
Responsibility

Carrying on the spirit of founder Sakichi Toyoda, Toyota
Industries strongly believes that quality is the lifeblood of acompany. Focusing on quality first and ensuring customer
safety and reassurance are our most important responsibilities
to our customers and form the basis of our CSR approach.
Toyota Industries strives to maintain and improve thetotal quality of our corporate activities, which
encompasses “product quality,” “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 allof these attributes.

Activities Based on the Quality Guidelines

Health guidance for prevention oflifestyle diseases

Physical fitness measurement conductedduring age-based health education

51

Relationship with Our Business Partners
Enhancing Team Strength
Toyota Industries believes that enhancing team strength isvital to forming a dynamic workforce and achieving
sustainable corporate growth.

Technical Skills

Management Skills• TQM• TPM, etc.

• Expertise• Skills• Know-how
Team Strength

LeadershipTo pursue improvements
thoroughly and continuously
Spirit of Harmony

Teamwork
Well-rounded humanity

52

Management Skills
We conduct work procedures training on problem solving
targeting associates in administrative and engineering fields
so that they can improve their problem-solving capabilities.
This training is also provided at subsidiaries outside Japanin an effort to share our thinking and values regarding work
procedures throughout the Toyota Industries Group.
Toyota Industries Report 2013	Fair Competition Based on an Open Door
PolicyWe have a fair entry process that allows all potential
business partners, regardless of nationality, size andexperience, the same opportunity to offer us their products
or services through our Website to achieve broad andopen procurement.

	Establishing Work Environments Where
Diverse Human Resources Can Play
Active Roles
We are implementing a variety of measures to create work
environments where a diverse range of human resources
can fully exercise their capabilities. These measures
include supporting managing both work and family,
supporting the employment of persons with disabilities
and creating a work environment in which older associates
can play active roles.
Support for Managing Both Work and Family
In addition to enhancing systems to help our associates
manage both their work and family, we regularly holdexchange meetings and seminars to provide information
on diverse ways of working and increase awarenessamong associates.
In fiscal 2013, we helda seminar on thetheme of managing
both work and family
that facilitates growthfor both individuals
Seminar on managing both work and family
and organizations.
Employment of Persons with Disabilities
We respect the idea of people with and without disabilities
working together and sharing life and work values. Under
this basic policy, we continue to employ persons withdisabilities every year. They are assigned to a variety ofsections and work with other members to perform theirdesignated tasks. In fiscal 2013, the ratio of associateswith disabilities on a non-consolidated basis was 2.06%.
Creating a Work Environment for Older Associates
We are making Company-wide efforts to create a work
environment in which older associates can play activeroles. Specific examples include improving processes tohelp associates with impaired eyesight as well as providing
support for health management.

“packaging materials” to the existing category of parts andraw materials. In this way, we are making efforts to prevent
prohibited substances of concern from being mixed into
our products so that our customers can use them withgreater safety and reassurance.
The guidelines also clarify Toyota Industries’ point ofview and initiatives regarding the conservation activities forbiodiversity, which is gaining importance as part ofenvironmental protection activities, and seeks theunderstanding of business partners.

	Localization of Business for Good
Corporate Citizenship
In view of increased local production outside Japan,
we promote procurement from local business partners
in order to contribute to the local community throughconsolidated subsidiaries.

We comprehensively evaluate our business partners
based on quality, price, their adherence to delivery times,
technological capabilities and company stability. We also
assess their initiatives for safety, the environment andcompliance as we strive for the timely and stableprocurement of excellent products at lower costs basedon fair business transactions.

	Co-Existence and Co-Prosperity Basedon Mutual Trust
We work hard to realize co-existence and co-prosperity
with our business partners based on mutual trust. We holdannual procurement policy meetings and executive
seminar for major business partners to gain theirunderstanding and cooperation. In order to consistently
procure better products, we also conduct quality andtechnical skills training programs and safety and healtheducation as well as provide guidance directed towardkaizen at business partners’ production sites.

	Disaster Prevention Activities for Possible
Major Earthquake
Based on the lessons learned from the Great East Japan
Earthquake, we engage in disaster prevention activities in
anticipation of a major earthquake in Japan. We aremaking concerted efforts with business partners to ensure
the stable supply of parts and raw materials during therestoration of production.
One such activity in fiscal 2013 included holding
disaster prevention seminars as an avenue for providing
business partners with an explanation on our initiatives.
At the seminar, we requested them to make selfassessments on their disaster prevention activities inaccordance with a check sheet.
Based on the results, we are working with business
partners to put in place a system to enable quick
information gathering and the restoration of production in
the event of a disaster.

	Reducing Environmental Impact throughEnvironmentally Preferable Purchasing
In order to create environmentallyfriendly products, we aim to procureparts, materials and equipment frombusiness partners that give sufficientconsideration to the environment.
In fiscal 2013, we revised ourEnvironmentally Preferable
Purchasing Guidelines and issued
the 5th edition.
In the latest edition, we added
Environmentally Preferable
Purchasing Guidelines

Disaster prevention seminar for business partners

Relationship with Our Associates/Relationship with Our Business Partners

Technical Skills
We are currently working to enhance the skills of ourtechnical staff primarily by providing training programs at
the Technical Learning Center, one of our training facilities,
to gain skills to support manufacturing. At the 50th
National Skills Competition held in October 2012,
the Toyota Industries team won one silver medal and four
bronze medals in the categories of “electrical welding,”“mechatronics,” “mechanical engineering design—CAD”
and “structural ironsmith,” thereby attaining medals for the
12th consecutive competition. We believe this is the resultof our success at raising skill levels throughout our
manufacturing operations as well as cultivating top-caliber
specialists.
In addition, we teach new associates in engineering
fields fundamental knowledge regarding specialized skills
through classroom lectures and hands-on training. Basedon the concept of genchi genbutsu, they must learn thebasics of manufacturing through a comprehensive,
experience-oriented program that covers all aspects fromplanning and design to actual production before they are
assigned to respective workplaces. Even after being
assigned, we provide training programs matched to theneeds of each workplace in an effort to raise skill levels.

Toyota Industries encourages open procurement and seeks co-existence and co-prosperity with ourbusiness partners based on mutual trust. We also facilitate environmentally preferable purchasing and
CSR-oriented purchasing practices.

Corporate Social
Responsibility

We believe that team strength is made up of “technicalskills” that form the basis of manufacturing operations,“management skills” to make maximum use of technicalskills and “spirit of harmony” that supports both. Whilefurther enhancing our team strength, we are striving toextend and hand it down beyond all business domains,
generations and geographic regions.

Spirit of Harmony
Toyota Industries iscreating a bright,
energetic and caring
work environment that
fosters a dynamic
workforce and allows
every member toWork procedures training on problem solving
demonstrate his or hercapabilities both as an individual and as a team.
Throughout the world, we are proactively encouraging
communication not only during work hours but also
through social gatherings, sports days, summer festivals,
Group-wide ekiden long-distance relay races and cheersquads for various sports events.

53

Relationship with Our Shareholders and Investors

Relationship with Our Local Communities

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

With a view toward fostering community growth and creating an enriched society, we actively undertakesocial contribution activities in every region where we do business.

Basic Perspective

Activities as a Good Corporate Citizen

Toyota Industries continually carries out timely andappropriate information disclosure for shareholders andinvestors. In this way, we raise management transparency
so that we obtain an appropriate company valuation instock markets. We provide not only information required
under disclosure laws and regulations but also informationon our management policy and business activities. Also,
we strive to promote communications with shareholders
and investors and feed back their comments to executives
and relevant business divisions to reflect them in ourbusiness activities.

Engine plant tour for institutional investors (December 2012)

General Shareholders’ Meeting

For institutional investors and securities analysts,
our management conducts briefing sessions to explain
our quarterly financial results, including businessperformance, progress achieved at each business divisionand future initiatives. In addition to accepting interviews at
Toyota Industries’ offices and making visits to institutional
investors, we also hold plant tours to facilitate a deeper
understanding of our manufacturing operations.
To address the needs of institutional investors from outside
Japan, we participate in conferences hosted in Japan by
securities companies and hold small and individual
meetings.
Taking advantage of the Internet as a means of
disclosing information in a quick and fair manner, Toyota
Industries provides a variety of information via the Investor
Relations page. We use RSS feeds (in Japanese) topromptly provide the latest information.

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.
Briefing on financial results for fiscal 2013 by the president (May 2013)

Dividend Policy
Toyota Industries regards returning profits to shareholders
as one of the most important management policies.
Accordingly, we strive to continue paying dividends andmeet the expectations of shareholders upon taking into
consideration such factors as business results, demand
for funds and the payout ratio. For fiscal 2013, Toyota
Industries paid annual cash dividends per share of ¥55.0(interim cash dividend per share of ¥25.0 and year-end
cash dividend per share of ¥30.0).
■ Cash Dividends per Share (Annual)

Toyota Industries is engaging in various activities in close
cooperation with every local community in which we

Activity Examples (in Japan)
Mini Concerts at Elementary Schools
In November 2012, we hosted mini concerts at elementary
schools in Iwate Prefecture jointly with a non-profit
organization (NPO), Kodomo ni Ongaku wo (“Bring Music
to Children”), as a gesture of encouragement to thechildren affected by the Great East Japan Earthquake. We
hope this activity will nurture children’s sensibilities throughmusic by professional players and help them grow into
spiritually enriched adults.

50
40
30
20
10
09

10

11

12

13

Mini concert
Toyota Industries Report 2013

Volunteer Activity at Welfare Facility
In September 2012, the Toyota Industries Team Leader
Association* at the Nagakusa Plant in Aichi Prefecture,
which engages in vehicle assembly operations, visited a
day services facility for a volunteer activity that primarily
involved talking with elderly persons. Through plantbriefings and games, the employees engaged in lively
conversations with senior citizens, making it a rewarding
day for all participants.
* An autonomous Company-wide organization consisting of young leaders at
manufacturing sites, the organization promotes interchanges for self-development andcarries out volunteer activities.

(¥)
60

0
(FY)

54

	Three Pillars of Our Social Contribution
Activities

Social Welfare
To help develop local communities where everyone
enjoys an active life, we hold various social welfare
events to encourage exchange with persons withdisabilities and conduct joint fund-raising programswith our consolidated subsidiaries in Japan.
Youth Development
With the aim of providing opportunities for youth, whowill lead the next generation, to learn the importanceof monozukuri (manufacturing) and the meaning ofwork through actual experiences, we hold events
jointly with Youth Invention Clubs, host work experience
activities and conduct environmental education.
Environmental Protection
We carry out a range of environment-related activities,
including promoting the use of wood thinned fromforests in Japan, conserving forests through employee
volunteer programs and engaging in cleanup
activities in the community where our plants arelocated, to contribute to environmental preservationand the development of a sustainable society.

Relationship with Our Shareholders and Investors/Relationship with Our Local Communities

Investor Relations Activities

	Structure for Promoting Social
Contribution Activities

operate, placing particular emphasis on social welfare,youth development and environmental protection.

Corporate Social
Responsibility

We hold our annual general shareholders’ meeting early to
avoid the date on which many companies hold theirrespective shareholders’ meetings so that moreshareholders can attend.
We are laying the groundwork for further facilitating theexercise of voting rights of our shareholders by allowing
them to exercise such rights via the Internet and by joining
the electronic voting platform for institutional investors.
We held our 134th General Shareholders’ Meeting on
June 14, 2012, in which 363 shareholders participated.
For the purpose of fostering a better understanding of ourbusiness activities, we invited our shareholders for a lift
truck plant tour following the general shareholders’meeting.

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 anenriched and healthy society. In our activities, we not only
provide cooperation and support through personnel,
facilities, funds and know-how but also strive to closely
connect with participants. To foster employees’ awarenessof their ties to society and raise their interest in contributing
to society, we promote enlightenment efforts such as
sharing information on volunteer activities and providing avenue for volunteer activities that encourage theparticipation of all employees.

Members of Toyota Industries Team Leader Association engaging inconversations with senior citizens

55

Toyota Industries Report 2013

Activity Examples (outside Japan)
India–

Switzerland–

Donations to Organization for Supporting Persons with
Disabilities

Presentation on Textile Machinery

Kirloskar Toyota Textile Machinery Pvt. Ltd. (KTTM)
Subsidiary producing automotive parts and textile
machinery

Toyota Textile Machinery Europe, AG (TTME)
Subsidiary for sales and servicing of textile
machinery

In May 2012, KTTM lent its support to the marathon heldby the EnAble India* group to promote employment
opportunities for persons with disabilities. KTTM donatedT-shirts for the event.

In May 2012, TTME invited local elementary school
students and held a presentation on textile machinery.
The children listened to explanations on how raw cotton
is transformed into yarn after undergoing various steps(spinning) and how yarn is turned into fabric (weaving).
Afterward, they observed an air-jet loom in operation andwere amazed by its speed while learning more about theweaving process.

* EnAble India is a volunteer group that works to improve the quality of life for persons withdisabilities by creating employment opportunities.

Marathon participants

Romania–

U.S.A.–

Support for Environmental Conservation Activities

Fund-Raising Activity for Those in Need

Toyota Material Handling Romania s.r.l. (TMHRo)
Subsidiary for sales of lift trucks

Michigan Automotive Compressor, Inc. (MACI)
Subsidiary producing car air-conditioning
compressors

In May 2012, TMHRo employees worked with local
volunteer groups to support environmental conservation
activities promoted in their country and took part incleanup activities in forests located on the outskirts of
Bucharest, the capital city of Romania. In addition to theparticipation of the employees, the company paid totransport trash from sites and supplied the necessary
materials to help make the activities a success.

56

Elementary school children observing an air-jet loom

Employees carrying out cleanup activities
Toyota Industries Report 2013

Environmental Initiatives
Special Feature: A Biotope to Link People,
Nature and the Local CommunityP

58− 61

Vision for Environmental Activities

P

62

Structure to Implement Environmental Management

P

63

Fifth Environmental Action PlanP

64− 66

Establishing a Low-Carbon Emission SocietyP

67− 68Establishing a Recycling-Based Society

P

69

Reducing Environmental Risk andEstablishing a Society in Harmony with Nature

P

70

Environmental Management

P

71

Environmental Impact Flow and Environmental Accounting

P

72

In December 2012, volunteer teams from MACI collected
donations for those in need. This activity, which is carriedout and commonly seen during the Christmas season at
shopping centers and other venues, is one of the manydifferent programs led by The Salvation Army, a nongovernmentalorganization (NGO),in over 100 countries
around the world.

Employees collecting donations

57

Special FeatureSpecial Feature

Initiatives for Biodiversity

Initiatives for Biodiversity

A Biotope to Link People, Nature andthe Local Community—Aiming to Develop an Ecological Network—
A biotope is a microcosm space where various living organisms native to a region can live and thrive in a self-sustainable
manner. In September 2012, Toyota Industries turned its idle land into a community-friendly biotope.
In cooperation with an initiative of Aichi prefectural government in Japan to promote the development of ecologicalnetworks, we have been working to create an environmental setting that can serve as a node to connect green zones in thesurrounding areas with waterways and become a habitat for various living organisms.
We also wish to create a link with the local community by making the biotope accessible to the public. Toyota Industries
will also provide environmental education and maintain this biotope jointly with local elementary schools and community
members.
The new biotope embraces our vision of creating a new place of interaction among nature, living organisms and people.

Creating a Biotope That Facilitates Development of an Ecological Network
The Tenth Meeting of the Conference of the Parties to the Convention on Biological Diversity (COP10) in October 2010 took place in
Aichi Prefecture. In order to uphold COP10’s philosophy of “Living in Harmony with Nature,” the prefectural government has since
been promoting the development of ecological networks throughout the prefecture as a means of conserving biodiversity. In the
Chita Peninsula, where our production sites are located, the Chita Peninsula Ecological Network Council was established in January
2011 with the aim of developing an ecological network through collaboration among organizations and individuals, including theprefectural government, companies, NPOs, expert bodies and students. Taking part in this council, Toyota Industries has been
cooperating with other members and carrying out activities to contribute to the formation of an ecological network.

n What Is an Ecological Network?
Land development and other activities often
divide a natural environment into smaller
segments. Developing an ecological network
means to connect these isolated segments ofgreen zones and waterways. The resulting
network means a larger living space for various
living organisms and encourages the protectionof biodiversity. (See the illustration on the right.)

Notional Diagram of Ecological Network
Before creating biotope

After creating biotope

Habitat of livingorganisms
Pathway of livingorganisms

Biotopel Isolated green zones, providing alimited habitatl Connected green zones, extendinga habitatn Ecological Network Surrounding Target Area
Chita Peninsula
Our biotope, which we named “Biotope at the East of Obu Station,” is located in the northern area of the Chita Peninsula in Aichi
Prefecture. Unlike the southern region, which remains rich in nature with an abundant variety of living organisms, industrializationand housing development have adversely affected the quantity and quality of greenery in the northern region.
Surrounding Area
There are two large green zones, or natural habitats, in the vicinity. Toyota Industries’ biotope can serve as a stepping-stone to linkthese two green zones.
Our biotope is regarded as being very unique in Japan, as it is located adjacent to the residential area, not within our own
corporate factory site, thus providing free access to the premises to everyone.

Aichi Prefecture

Chita Peninsula

Biotope at the Eastof Obu Station

Surrounding arean Message from Stakeholders

Toyota Industries’ Positioning of the Biotope Project
In February 2011, Toyota Industries revised the Global
Environmental Commitment and explicitly stipulated in the updated
environmental policy that we undertake efforts to protect
biodiversity.
Under the Fifth Environmental Action Plan that defines ouractivities in the medium term, we have been promoting initiatives
after carefully identifying the impact of our business activities on
biodiversity and setting specific targets accordingly.
The creation of a biotope is one such initiative. We seek tocontribute to the protection of biodiversity through collaboration
with such organizations as the prefectural government, non-profit
organizations (NPOs), local community and expert bodies.

58

Toyota Industries Report 2013

愛知県
Aichi
Prefecture

Toyota Industries’
biotopeToyota Industries’ biotope is not just an ordinary
biotope. It is a biotope to connect to the naturalenvironment in the surrounding area, forming an
ecological network and regenerating the indigenous
ecosystem in front of a railway station located in theproximity of large factories. The biotope will attract
dragonflies, birds and children as well as provide a
Takahito Niwa
space for people to interact and enjoy nature. It will
Director, Natural
Environment Division, be a valuable asset shared by all local community
Department of themembers.
Environment, Aichi
Development of an ecological network by aPrefecturecompany is an extremely unique, visionary initiative,
and we are truly grateful for Toyota Industries’ efforts. We will publicize
this initiative widely as one of the most outstanding corporate initiatives
both in Japan and in the world.

Takaya Iida

College of Business
Administration andInformation Science,
Chubu University

As part of activities under theLife Relay Project*, weplanted the region’s native
trees in the biotope
established by Toyota
Industries. Some insects andwild birds are already visiting,
and we hope this biotope will
become a biotically diverse,
self-sustainable habitat.

Initiatives for Biodiversity

Natural habitat(Aichi Kenko-noMori Park)

Environmental
Initiatives

Natural habitat(Futatsu-ike Park)* A project jointly carried out by Aichi Prefecture, NPOs, companies andstudents with the aim of forming ecological networks by leveraging
corporate green zones of the Chita Peninsula as well as developing
young environmental leaders59Special Feature

Environmentally Designed Biotope

Together with the Local Community

Our biotope is environmentally designed to the extent possible, from the choice of materials to maintenance and management.
The following are a few of such examples.

“Eco-Stones”

We recycled waste generated at ourplants, such as dust and scrap, andcreated eco-stones by applying a smelting
reduction process. These stones are used
for landscaping and marking the pond
and streams.

“Agleaf” (Soil Amelioration)

We collected fallen leaves and branches
pruned from trees on our factory premises
and recycled them as a tree mulchingmaterial*.
* Used to prevent surface soil from being blown away,
inhibit growth of weeds and retain soil temperature andhumidity to promote growth of plants

Initiatives for Biodiversity

Solar Power Generation

In designing our biotope, we sought advice from local government officials,
experts and members of environmental organizations from the planningphase. We also solicited opinions from local residents via briefing sessions
on such matters as ways to utilize this biotope.
During the construction phase, we collaborated with various entities,
including a local welfare organization, special needs school and Boy Scout
troop, and made wooden benches and released fish into the stream.
We will continue to work together with local community members tomaintain and manage this biotope so that it remains an accessible,
comfortable place to interact with nature.

Pumps that circulate water within the
biotope use electricity naturally generated
by solar panels installed on the premises.
Local community briefing session

Rendering of Our Biotope

Local Boy Scout members releasing fishn Future Directionn Special Website Opened

Environmental
Initiatives

The creation of a biotope was the first initiative of its kind ever undertaken
by Toyota Industries. Our aim is to nurture a biotope to bring nature andliving organisms back to the way they should be and contribute to theconservation of regional biodiversity.
For further expanding an ecological network within the region, we willcontinue to undertake activities to develop another biotope and ones that
follow, with the ultimate goal of forming our own unique ecological network.

When I heard about
this project, my first
impression was a
corporate park open
to the local community.
As I listened closer,
I realized it was notjust a simple park,
but a natural habitat
based on a clear
concept ofHideo Yoshimura
Director, Obu District,connecting to the
Obu City, Aichi Prefecture
surrounding naturalenvironment and providing a larger space forliving organisms. I was drawn to the idea.
This biotope is a place for nature andliving things, but we hope to turn the place
into a small oasis for people as well, wherechildren play with dragonflies and butterflies
and adults come to relax. In doing so, ourcommunity will provide necessary support
for this project.

http://www.toyota-shokki.co.jp/biotope/ (Japanese)

Received a Letter ofAppreciation from the Governorof Aichi Prefecture
We received a letter of appreciation from
Governor Omura of Aichi Prefecture for our
significant contribution to the developmentof ecological networks within the prefecture
through our biotope initiative.

60

We will realize our vision of creating “a biotope
to link people, nature and the local community,”
with the cooperation of community members,
the prefectural government and experts.
Toyota Industries Report 2013

Granted Excellence Prize in2013 Aichi Environmental
AwardsToyota Industries’ biotope is used for
activities of the Life Relay Project andhas been developed in close
collaboration with other organizations
participating in the project. Our efforts
were highly recognized as an exemplary,forward-thinking project effective indeveloping ecological networks. The 17
participants, including Toyota Industries
and the student executive committee ofthe project, received an Excellence Prizein the 2013 Aichi Environmental Awards.

Won Biotope Award in the Fifth Biotope
Commendation
At the Fifth Biotope Commendation* sponsored by
the NPO Japan Biotope Association, Toyota
Industries’ biotope received the Biotope Award,
the program’s highest award. The association
highly appraised the concept of our biotope, its
environment-conscious design and sustainable
maintenance and management jointly carried out
with the local community.

Initiatives for Biodiversity

External Awards* A program to award excellent biotopes throughout Japan for the
purpose of further encouraging the creation of biotopes and raise
public awareness61

Vision for Environmental Activities

Structure to Implement Environmental Management

Toyota Industries works with consolidated subsidiaries in and outside Japan to promote environmental
activities on a global scale. With regard to our “CO2 Cancel” initiative, we aim to accomplish its targets infiscal 2016.

Positioning environmental response as one of its most crucial management issues, Toyota Industries isenhancing its environmentally oriented corporate management on a global basis through the promotion of
consolidated environmental management.

	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 andservices that are clean, safe and of high quality.
Accordingly, in February 2011, we established the Global
Environmental Commitment, a specific environmental
action guideline, to be shared and implemented
throughout the Toyota Industries Group.
The entire Toyota Industries Group comprising 154
companies in and outside Japan will dedicate concerted
efforts to realizing a prosperous life in harmony with thenatural environment by carrying out activities aimed at“establishing a low-carbon emission society,” “establishinga recycling-based society” and “reducing environmental
risk and establishing a society in harmony with nature” as
our way of “promoting environmental management.”
Aiming at realizing a prosperous life in harmony
with the natural environment• Change to more environmentally friendly chemicals• Minimize environmental risks

Steps to Accomplishing “CO2 Cancel”
1

Environmental
Managementn Environmental Management Structure
Environmental Committee

PresidentInternal audit•Team leader•Supervising auditors•Auditors

Chief environmental administrator• Approach towards biodiversity• Human resources,
environmental awareness• Cooperation with global
society and local communities

2 Simulate a timeline to accomplish “CO2 Cancel”
3

Notional Diagram of Global Environmental Commitment

Specify targets (including when to accomplish“CO2 Cancel”)

Head Office
Corporate Planning
R&D
Purchasing
Quality Assurance
Human Resources
General Administrationn System of Mutual Audits

Specialized committees

Responsible internal auditor

Divisions
Materials Handling Equipment
VehicleEngineCompressor
Electronics
Logistics
Textile Machinery

Toyota Industries implements annual internal
environmental audits as well as external audits carried out
by an independent third-party institute.
The external audit conducted in fiscal 2013 revealed
five non-conformances. We have already completed
measures to correct them and passed on the relevant
information to other plants to prevent recurrences.
As for internal audits, we introduced a system ofconducting mutual audits among business divisions infiscal 2013. Previously, internal audits of individual
business divisions had been led by the Environment
Department of the Head Office. Under the new system,
the Environment Department of one business division
plays a central role in an internal audit of another businessdivision. By adopting this method, we aim to upgrade theoverall capabilities of the Environment Department of eachbusiness division.

Product Environment Subcommittee

Business division A

Production Environment Subcommittee

Environment Department

Audit

Business division B
Environment Department

Audit

Company-Wide CO2Emission Reduction Conference

Division-Based
Promotion Committees

Business planning

Business planning

Production engineering

Production engineering

Manufacturing

Manufacturing

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

4 Promote activities to achieve these targets

	Working toward “CO2 Cancel”
What Is “CO2 Cancel”?
We have been promoting initiatives under our original
concept called “CO2 Cancel.” This refers to our aim tooffset CO2 emissions from production activities by

5 Accomplish “CO2 Cancel”
6 Define higher targets (e.g., “CO2 Double Cancel”)

CO2 Cancel

North America■ Production companies: 10

CO2 emissions from production activities= Total CO2 emissions from Toyota Industries’ plants

Reduction of CO2 emissions via improved
product efficiency
Toyota Industries Report 2013

Non-production companies
Japan: 24
Outside Japan: 93

Notional Diagram of “CO2 Cancel”

Japan■ Non-consolidated: 10 plants■ Production companies: 13

Europe■ Production companies: 6

CO2 emissions fromproduction activities

62

n Scope of Group-Wide Environmental Management (As of March 31, 2013)

Reduction of CO2 emissions via improved product efficiency=T otal reduction in CO2 emissions attained by major products
which are manufactured at Toyota Industries’ plants

Toyota Industrial Equipment Mfg., Inc. (U.S.A.)The Raymond Corporation (U.S.A.)
Raymond-Muscatine Inc. (U.S.A.)
North Vernon Industry Corp. (U.S.A.)
Indiana Hydraulic Equipment, Corp. (U.S.A.)
Michigan Automotive Compressor, Inc. (U.S.A.)TD Automotive Compressor Georgia, LLC (U.S.A.)
Cullman Casting Corporation (U.S.A.)
Cascade Corporation (U.S.A.)
Toyota Industries Compressor Parts America, Co. (U.S.A.)BT Products AB (Sweden)
Toyota Industrial Equipment, S.A. (France)
CESAB Carrelli Elevatori S.p.A. (Italy)
L.T.E. Lift Truck Equipment S.p.A. (Italy)
TD Deutsche Klimakompressor GmbH (Germany)
Uster Technologies AG (Switzerland)

Asia■ Production companies: 7

Aichi Corporation (Saitama)
Nishina Industrial Co., Ltd. (Nagano)
Tokaiseiki Co., Ltd. (Shizuoka)
Altex Co., Ltd. (Shizuoka)
Hara Corporation (Gifu)
Mino Tokyu Co., Ltd. (Gifu)
HANDA Casting Company (Aichi)
Unica Co., Ltd. (Aichi)
IZUMI MACHINE MFG. CO., LTD. (Aichi)
Nagao Kogyo Co., Ltd. (Aichi)
Miduho Industry Co., Ltd. (Aichi)
Iwama Loom Works, Ltd. (Aichi)
Tokyu Co., Ltd. (Aichi)

Vision for Environmental Activities/
Structure to Implement Environmental Management• Development of products andtechnologies in pursuit of superiorenergy efficiency• Achievement of minimum energy
consumption through the innovationsin production engineering

Establish parameters to calculate CO2 reduction
volume for each product	Environmental Audits

Toyota 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 Company-wide integrated environmental
management system (EMS), with the president at the top.
In fiscal 2011, we initiated the process of consolidating
environment-related regulations that had been establishedseparately by each business division. In fiscal 2013, weformulated and started operating an integrated version ofregulations related to evaluation of the impact of overallbusiness activities on the environment (evaluation ofenvironmental aspects).

Admin office
Recycling-basedsocietyLow-carbon
emission society

Defining a Target (Timeline)
In fiscal 2013, we used our original parameters to estimate
CO2 reduction volume attained in each of the products wedevelop (lift trucks, engines, car air-conditioning
compressors, car electronics components, textile
machinery and others) through such means as improved
energy savings and weight reduction.
As for CO2 emissions from production activities,
we estimated annual emission volume by taking into
account both the CO2 emissions that naturally increased inline with an expansion of production volume and the CO2
emissions that declined as a result of CO2 reduction
activities.
We simulated the overall CO2 emissions volume basedon these estimates and specified fiscal 2016 as the target
year to accomplish “CO2 Cancel.”In the years ahead, we will facilitate activities towardachieving this goal.

	Improving Environmental Management
System Efficiency

Environmental
Initiatives

Environmental risk
reduction
Society in harmony
with nature• Effective use of resources at thedeveloping stage of products• Improvement of productivity interms of resources usage

reducing CO2 emissions via improved product efficiency
and other means. We have adopted this approach as a
new environmental target under the Fifth Environmental
Action Plan and been promoting activities accordingly.

TD Automotive Compressor Kunshan Co., Ltd. (China)
Toyota Industry (Kunshan) Co., Ltd. (China)
Zhejiang Aichi Industrial Machinery Co., Ltd. (China)
Kirloskar Toyota Textile Machinery Pvt. Ltd. (India)
Toyota Industrial Equipment Vietnam Co., Ltd. (Vietnam)
Nishina Industries Vietnam Co., Ltd. (Vietnam)
P.T. TD Automotive Compressor Indonesia (Indonesia)

63Fifth Environmental Action Plan
As a result of our strong commitment to the Fifth Environmental Action Plan (fiscal 2012 – fiscal 2016),
we successfully achieved the targets set for fiscal 2013. In fiscal 2014, we will continue to facilitate activities
to achieve a greater reduction in environmental impact.

	Progress in the Fifth Environmental
Action Plan
With an eye to realizing a prosperous life in harmony with
the natural environment through the establishment of asustainable society, we have formulated the Fifth
Environmental Action Plan for the period from fiscal 2012

n Establishing a Recycling-Based Society
Segments

Action Policies/Specific Actions

Subject

Scope

FY2013 Targets

Control Items

Base Year (FY)to fiscal 2016, promoting activities according to the plan.
In fiscal 2013, we succeeded in achieving all targets
defined for the fiscal year under the plan. To reduce
environmental impact further, we have also determinedtargets to be attained by fiscal 2016.

Implement initiatives to promote 3R (reduce,reuse and recycle) design for effective
resource utilization•Reduce use of resources through longer
product life
Products •Reduce use of resources throughstandardization, modularization and reductionof components•Reduce use of resources through weight andsize reductions•Promote reuse of components and resources

Targets

FY2013 Achievements
Achievements

FY2016 Targets

Year
Evaluation Base(FY)

•Realized more compact
inverter for electriccompressors

○

1.06

4.25

○

1.13

1.28

○

*2

Targets*2

The results up to fiscal 2013 that are listed on pages 64–72 were surveyed by Toyota Industries Corporation.

n Establishing a Low-Carbon Emission Society
Segments

Action Policies/Specific Actions

Subject

Scope

Control Items

FY2013 Targets
Base Year (FY)

Targets

FY2013 Achievements
Achievements

Reduce CO2 emissions in the market by 10%*1
from major products to be developed during theperiod covered by the Fifth Plan

<Materials Handling
Equipment Business>•Developed highly efficientelectric lift truck byadopting a regeneration
system and other features*2

Enhance resource productivity<Packaging materials>•Reduce use of timber-derived packaging
materials
Production <Resources>•Reduce the volume of discarded materials bytaking action at the source, such as
improving yields and other measures•Promote internal reuse

Promoting measures to curb global warming•Promote horizontal deployment oftechnologies to curb global warming•Strengthen and expand ESCO*5 activities

by promoting mixed transport among
business divisions

64

Toyota Industries Report 2013

1991

Segments

2006

Action Policies/Specific Actions

Subject

Scope

Control Items

1.12

1.23

○

1.16

1.45

○

FY2013 Targets
Base Year (FY)Global-17% (FY09-13 average)

○

1.15

1.28

○

1.32

1.49

○

1.02

1.29

○

2006

1.01

—

—

Targets-18%

FY2013 Achievements
Achievements

FY2016 Targets

Year
Evaluation Base(FY)

Targets•Developed lift truck
engines compliant withemissions regulations
ahead of schedule*2•Expanded the scope of
substances of concern(started investigating
substances of concern
contained in supplies)•Investigate chemical substances contained in
products and manage switching over of
SVHC*8 and other substances of concern toother substances

○

*2

1.27
2006

Nonconsolidated
Consolidated
subsidiaries
in Japan

Ecoefficiency*7

Nonconsolidated

1.47

2006
—

—

Further reduce emissions of substances ofconcern•Reduce emissions of substances of concern
mainly from painting processes
Minimize environmental risks

Production •Expand the use of a preliminary review

Consolidated
subsidiaries
outsideJapan
CO2 from
logistics-10%(FY09-13
average)

1.01

Fifth Environmental Action Plan

CO2emissions•Energyderived
CO2•5 gases*6•CO2 fromlogistics

Total
emissions

1.09

n Reducing Environmental Risk and Establishing a Society in Harmony with Nature*2

Manage chemical substances contained in

Reduce greenhouse gas emissions during
production processes through energy JIT*4

Reduce CO2 emissions through green logistics•Promote modal shift

NonEco-efficiency
consolidated

Products products

Nonconsolidated

2007

2013
Waste
generation
volumeReduce emissions to improve air quality inurban areas in all countries and regions•Develop engines that meet future regulations

Promote energy reduction and energy
conservation through innovative production
technologies

Logistics •Reduce the number of transportation vehicles

In Japan○In the R&D field, develop technologies forenergy efficiency•Develop new technologies that contribute toimproved energy efficiency in automobiles<Energy-derived emissions>•Promote energy conservation of production
facilities•Promote airless/steamless operations
Production •Optimize supply energy•Encourage every employee’s participation
through visualization of energy loss
•Review energy-related strategy<CFCs>•Ensure complete recovery

2007

Consolidated
subsidiaries
in Japan<Textile Machinery
Business>•Incorporated IPM*3 motorin ring spinning frames
and achieved better
energy savings ofpneumatic suction
cleaning device

In the Textile Machinery Business, develop
technologies and products that will contributeto reduction of CO2 emissions•Reduce energy use through lower air
consumption•Reduce power use through lower load fromwindage loss
•Reduce energy loss

Eco-efficiency

Targets<Automobile-Related
Business>•Developed highly efficientelectric compressor•Developed plastic glazingback window

In the Materials Handling Equipment Business,develop technologies and products that willcontribute to reduction of CO2 emissions•Improve fuel efficiency of internal-combustion
lift trucks•Reduce energy loss in electric-powered lift
trucks and improve energy efficiency offunctional units

Nonconsolidated

Environmental
Initiatives

Products

Year
Evaluation Base(FY)○

In the Automobile-Related Business, promoteelectrification and develop technologies andproducts that will contribute to reduction of
CO2 emissions•Improve energy efficiency of car air
conditioners•Develop technologies to respond toelectrification of vehicles•Develop technologies to enable weight
reduction•Reduce energy loss
•Develop new engines

Packagingmaterial
volumeFY2016 Targets

1.05

1.16

○

—

—

Total
emissions

1991

-15%

-38%

○

1991

-20%

Ecoefficiency

2007

1.06

1.28

○

2007

1.09

system•Reduce risks related to wastewater•Appropriately manage chemical substances
based on social conditions•Enhance risk communication with relevantorganizations and local residents

VOC*9emissions

Nonconsolidated(automobile
body)

Emissionvolume perunit ofproduction—

24 (g/m2)

24 (g/m2)○—

24 (g/m2)

65

Establishing a Low-Carbon Emission Societyn Promoting Environmental Management
Segments

Action Policies/Specific Actions

Subject

Scope

Control Items

FY2013 Targets
Base Year (FY)

Reinforce CO2 reduction activities for “CO2
Cancel”•Further reduce CO2 emitted from production
activities in plants•Aim to cancel out CO2 emissions of Toyota
Industries by reducing CO2 emissions
through improved efficiency in newly
developed products

Targets

FY2013 Achievements
Achievements

FY2016 Targets
Base Year(FY)

Targets

We position the establishment of a low-carbon emission society as one of our most crucial environmental
tasks. We will work to reduce CO2 emissions in our global business activities and at the same time accelerate
our efforts to develop more environment-friendly products.

•Set the timeline for achievement of“CO2 Cancel”(Target: FY2016)

CO2 Emissions (Production Activities)
FY2013 Results

FY2013 Targets
Augment and promote consolidated
environmental management•Build a global environmental management
system and promote related activities to:1) C omply with environment-related laws andreduce environmental risks in each country2) A chieve the highest-level performance ineach country•Aim for efficient and systematic corporate
management by integrating and operating
environmental management system andquality/safety management systems

10% reduction
Eco-efficiency (global)

1.15•Conducted environmental awarenesssurvey among employees, whichscored 3.7 out of 5 points*10

Augment activities related to protection of
biodiversity•Identify the impact of business activities on
biodiversity and reinforce initiatives bydefining specific goals•Contribute to biodiversity throughconservation of forests and protection of rare
species•Revised Environmentally Preferable
Purchasing Guidelines that included
considerations to biodiversity•Established Biotope at the East of
Obu Station•Reviewed energy strategy for the
medium to long term

*1: Target products Toyota Industries develops and produces. The CO2 reduction volume is calculated based on the method Toyota Industries determined using FY2011 levels as the baseline.
*2: Details undisclosed due to confidential information and other reasons*3: Short for interior permanent magnet, this is a motor with a magnet embedded inside its rotor, offering improved energy savings, high efficiency and high torque.
*4: Just In Time
*5: Short for Energy Service COmpany, ESCO provides comprehensive services related to energy savings and supports energy-efficient activities.
*6: Greenhouse gases other than CO2, including methane (CH4), dinitrogen monoxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulfur hexafluoride (SF6)*7: Eco-efficiency = Production efficiency in subject year / Production efficiency in base year
Production efficiency = Production indicator (Net sales or production volume, etc.) / Environmental impact of production activities*8: Substances of Very High Concern*9: Volatile Organic Compounds*10: Specific targets are set separately and progress is disclosed via the Company Website or Toyota Industries Report and other media.

Initiatives for Establishment of a Low-Carbon
Emission Societyn CO2 Emissions (Non-consolidated/Consolidated
subsidiaries in and outside Japan)
Consolidated subsidiaries outside Japan
Non-consolidated
Consolidated subsidiaries in Japan
Eco-efficiency
Eco-efficiency (non-consolidated)
Eco-efficiency (consolidated)
1.49 1.6 Good
1.43
1.34
1.4

1.17

Toyota Industries Report 2013

1.06

1.00
734

666

600
400

1.10
596

1.18
679

1.27

1.28

762

797

12

13

1.2
1.0

Haruyuki Ito
Group Manager, Machining
Production Engineering Office,Production Engineering
Department, Compressor
Division

305

200
Good

66

1.00

Total
emissions
(kt)
800

1.24

0

(FY) 91

06

09

10

11

Position and department asof March 31, 2013

In developing this highprecision combined machine,
we first needed to clarify the
structure of our conventional
general-purpose equipment.
Then, to establish an original
production method, we added
various improvements to thismachine, which is one type of
manufacturing equipment, andapplied the world’s firstengineering technology.
As our future activity, we
aim for improved durability andhigher precision of thismachine and will work toenhance efficiency of themachining process for othercomponents.

Fifth Environmental Action Plan/
Establishing a Low-Carbon Emission Society•Won Environment Minister’s Award for
Global Warming Prevention Activity inrecognition of reduction of CO2
emissions through the introduction ofalternative coke products•Won Silver Prize of the Aichi
Environmental Awards for serializing
electric compressors

Under the Fifth Plan, we set out to achieve a target of
reducing total non-consolidated CO2 emissions fromproduction activities by 10% in fiscal 2013 comparedwith the fiscal 1991 level. We successfully reached thistarget as a result of our steady, ongoing efforts,
including activities to save power during summer andreduce peak power load, which started in fiscal 2012,
as well as activities to visualize energy loss in fiscal
2013. Globally, our target was to achieve ecoefficiency of 1.15 (using fiscal 2006 as the base year),
and we attained a significantly better result than thedefined target. We will make steady progress toward a
new target set for fiscal 2016.
Our product development activities are based on
the keywords of 3Es (energy, environmental protectionand ecological thinking), and we focus on developing
products that meet the need for increased energy
savings, electrification and weight reduction. In thisarea, we are currently working toward a target of
attaining a 10% reduction in CO2 emissions fromprimary products by fiscal 2016 compared with thefiscal 2011 level.

The Compressor Division has been working to develop
more compact production lines for electric compressors
since fiscal 2010 to improve the efficiency of manufacturing
processes and reduce CO2 emissions.
In fiscal 2013, we promoted improvement activities toreduce CO2 emitted during the parts machining processby 30%, or approximately 110 tons. With the leadership of
the Production Engineering Department, the divisioncollaborated with relevant departments and an external
equipment manufacturer and developed a high-precision
combined machine that can reduce the overall size of
production lines. The machine eliminates unnecessary
processes and attains significantly higher energy-saving
performance, thereby reducing CO2 emissions byapproximately 140 tons. The machine is also capable ofunprecedented higher precision processing, which
contributes to quieter operation of electric compressors.
In addition to electric compressors, the new highprecision combined machine can be used in the machining
line of conventional car air-conditioning compressors forinternal-combustion vehicles. We installed this machine atMichigan Automotive Compressor, Inc. (MACI) in the
United States and TD Deutsche Klimakompressor GmbH(TDDK) in Germany by the end of fiscal 2013.
Consequently, we reduced annual CO2 emissions of theentire Toyota Industries Group by roughly 600 tons.
Based on these outstanding achievements, this project
won the Most Outstanding Practice Award in fiscal 2013
under our internal award program to recognize excellent
environmental improvement activities.

Environmental
Initiatives

Improve eco-conscious brand image•Reinforce environmental activities according
to the contents and results of Survey ofEnvironmental Oriented Management Index
to pursue higher brand image

17
1.28

% reduction*FY09–13 average (vs FY91 level)(FY06 = 1.00)*10

Promote sustainable plant activities•Build a plant environment in harmony withnature by promoting energy reduction andenergy conservation through innovative
production engineering; by reducing energy
loss; and by using renewable energy andother means

Total emissions (non-consolidated)•Checked the precision ofenvironmental data at consolidated
subsidiaries in Japan and provided
support for improvement•Disseminated information regarding
plant-related laws and regulations•Confirmed compliance through checksheetsEnhance and promote environmental
education and enlightenment activities•Develop environmental specialists to leadinternal environment-related activities•Strengthen internal environment-related
activities and broaden family-friendly
initiatives by planning and promoting
enlightenment activities that can be carriedout at home

General	New High-Precision Combined Machine
to Reduce CO2

Summary67

Establishing a Recycling-Based Society	Certification of Environmentally Friendly
Product
Toyota Industries has been proactively promoting
development and design of eco-conscious products.
To certify products with exceptionally outstanding
environmental performance, we launched the
ESA34 (Electric Compressor)

10% higher*

1*1: Compared with the previous model by using
in-house testing patterns

High Pick Lift (Electric Lift Truck)

Approx.

80% longer*2*2: 1.0-ton model (operating in S mode) comparedwith the previous model

E-shed (Electronic Shedding Device for Air-Jet Looms)
Power consumption

22% reduction**3: Compared with the previous model(operating at 800 rpm)

FY2013 Targets

3

Eco-efficiency (non-consolidated)(FY06 = 1.00)

Eco-efficiency(non-consolidated & consolidated subsidiaries in Japan)

1.28

1.13
(FY06 = 1.00)

Points contributing to less environmental impact•The new electronic shedding device, whichallows the weaving of complex-patterned
fabrics, recovers energy generated in the
deceleration process. By upgrading theprevious model, the E-shed device allows
increased energy recovery and contributes toreduced power consumption.

Initiatives for Establishing a Recycling-BasedSociety

Eco-efficiency (Japan consolidated)

2.0
1.79
1.57

300
200

230

Iron scrap(reusable)

1.08

1.56

Raw material

1.16

1.22

1.20

1.23

1.2
1.0

1.00
185

Waste

Good

1.6
1.28 1.4

154

168

171

163

10

11

12

13

Products(counterweights
of lift trucks)

Iron scrap(reusable)

Metal scrap(non-standard)
PartnercompanyRawmaterial

Iron scrap(reusable)

100
Good 0(FY) 06

Awards ceremony

Sold to the market

HANDA Casting

1.8

1.61

Metal scrap(non-standard)

Toyota Industries(each plant)

Eco-efficiency

Waste generation volume (kt)

*4: For more details, see page 66 of the Toyota Industries Report 2012.
*5: A solid, plant-derived biofuel produced by heating and compressing biomass such as
wood chips from thinned trees or tea grounds thrown away by beverage
manufacturers

Waste
Products(counterweights
of lift trucks)

Consolidated subsidiaries in Japan

Eco-efficiency (non-consolidated)

1.00

Toyota Industries(each plant)

After Improvementn Waste Generation Volume(Non-consolidated/Consolidated subsidiaries in Japan)
Non-consolidated

Before Improvement

Establishing a Low-Carbon Emission Society/
Establishing a Recycling-Based Society

Our fiscal 2013 eco-efficiency targets in the area ofwaste generation volume under the Fifth Plan were1.12 on a non-consolidated basis and 1.13 for Toyota
Industries and its consolidated subsidiaries in Japan(fiscal 2006 as the base year). Since fiscal 2010,
personnel in charge of waste-related matters in eachplant and their counterparts in the Purchasing
Department of the Head Office have been holding
meetings to exchange information on waste, share theinformation on waste reduction efforts at each plantand consider joint reduction efforts among plants. We
also support waste reduction activities of ourconsolidated subsidiaries in and outside Japan by
actively sharing best practices throughout the Group.
In fiscal 2013, liquidation of one consolidated
subsidiary in Japan resulted in a lower eco-efficiency
than in the previous fiscal year. Regardless, we
successfully achieved fiscal 2013 targets set under theFifth Plan, both for Toyota Industries on a nonconsolidated basis and for Toyota Industries and its
consolidated subsidiaries in Japan.

In fiscal 2011, we rolled out an initiative to reduce CO2
emitted from the cast iron melting process*4 by replacing
coal coke with such substitutes as biocoke*5. In
recognition of this effort, we received the 2012
Environment Minister’s Award for Global Warming
Prevention Activity in the Countermeasure Technology
Introduction and Dissemination Category. This award isgiven to individuals or organizations every year tocommend their exceptional achievements in curbing
global warming.
Our efforts will continue to focus on further reducing
CO2 emissions by increasing the ratio of biocoke used in
the melting process and seeking other fuel substitutes.

Toyota Industries Report 2013

1.23

1.12

	Received the Environment Minister’sAward for Global Warming Prevention
Activity68

FY2013 Results

In July 2012, we started an initiative to reuse waste metal
scrap generated internally, which we previously sold to themarket, to the maximum extent possible as a raw material
to produce parts for our products.
Among waste generated by our plants, iron scrap has
already been reused as a foundry raw material by HANDA
Casting Company, a consolidated subsidiary in Japanproducing foundry parts for lift trucks. Other types of metal
waste, such as oil-containing debris, large-sized scrap
from press processing and mixed metal scrap of non-iron
metals, were not recyclable and were sold to the market.
For such metal resources, in fiscal 2013 one partnercompany of Toyota Industries began to undertake suchprocesses as briquetting as well as shredding and sortingby hand, effectively increasing the amount of reusable
metal scrap. We now recycle approximately 1,400 more
tons of waste annually within the Toyota Industries Group.

Environmental
Initiatives

Approx.

	Effective Recycling of Metal Resources
within Toyota Industries Group

Waste Generation Volume (Production Activities)

Points contributing to less environmental impact•In place of a DC motor used in the previous model,
we adopted our newly developed, high-powered,highly efficient AC motor for both cargo handling anddriving.
•Various regeneration systems run when the operator
lowers the fork, releases the accelerator, applies
brake control or performs a switchback maneuver,thus recovering energy very efficiently.

UptimeWith a view to contributing to the establishment of a recycling-based society, we have dedicated considerable
efforts to reducing waste generation volume and achieved results that greatly exceeded the targets laid out in
the Fifth Environmental Action Plan.

Summary

Points contributing to less environmental impact•The ESA34 achieves higher efficiency through the
adoption of a new mechanism. Energy efficiency has
been improved by approximately 10% compared withthe previous model.
•The use of a smaller inverter, a modification of structural
layout, a change in parts composition and a fewer
number of fastening locations made the ESA34
approximately 10% lighter than the previous model.

Energy efficiency

Approx.

Environmentally Friendly Product Certification Systemin fiscal 2007. Up to fiscal 2012, nine products haveobtained certification under this system. In fiscal 2013,
we certified another three as environmentally friendly
products, as described below.

Processing/sorting
Metal scrap(non-standard)
Raw material

09

HANDA Casting

Sold to the market

69

Reducing Environmental Risk andEstablishing a Society in Harmony with Nature

Environmental Management

We have been striving to reduce emissions of substances of concern by implementing thorough managementof chemical substances in product development and production activities.

Summary
VOC Emissions (Production Activities)
FY2013 Targets
Emissions per unit of production(non-consolidated/automobile body)

24

g/m2

FY2013 Results

24n Trichloroethylene Readings

g/m2

Under the Fifth Plan, we set a target to attain emission
volume per unit of production below 24 g/m2 forvolatile organic compounds (VOCs) from the vehicle
body painting process and undertook activities
accordingly. Solvents contained in paint are a major
source of VOC emissions. Thus, our efforts have been
focusing on increasing the recovery rate of thinner, asolvent, and improving coating efficiency throughoptimization of spray nozzles’ discharge pressure andamount. These ongoing efforts helped us achieve thefiscal 2013 target.

Main Check Items• Are effluents from outsourced work released directly into
gutters?
• Do subcontractors check vehicle oil leakage before
moving their vehicles?
• Is there leakage or spillage of oil, chemical agents,
detergents or organic solvents on the floor or roadsurface (including green zones and soil)?

	Soil and Groundwater Pollution
Countermeasures
Toyota Industries carries out surveys and purification ofsoil and groundwater contaminated from the past use of
Toyota Industries Report 2013

FY2009FY2010FY2011FY2012FY2013

Kariya Plant

0.67

0.67

0.41

0.38

0.26

Kyowa Plant

0.72

0.34

0.41

0.48

0.33

Weighted average concentration in groundwater (mg/l)

	Status of Compliance with Environmental
Laws
In January 2013, there was one incident at the Kariya
Plant (Aichi Prefecture), in which the biochemical oxygen
demand (BOD) level of effluents exceeded standard values
stipulated under the prefectural ordinance.
According to the survey results, the incident wascaused by an excessive amount of methanol mixed into
a wastewater treatment tank to reduce the amount of
nitrogen. We have reported this incident to the relevant
authorities and already completed corrective measures
along with subsequent confirmations to verify there are
no recurrences.
Following the incident, Toyota Industries held aCompany-wide countermeasure meeting to ensure theprevention of similar incidents within the Company.
Measures implemented at the Kariya Plant were presented
at the meeting, and participants shared information
concerning the incident and discussed measures thatshould be applied by other plants.
There was another instance in which effluents from theplant exceeded standard values at one consolidated
subsidiary within the Toyota Industries Group. This incident
has been reported to the relevant authorities, andcorrective measures have already been completed by thesubsidiary concerned. Subsequent confirmations havealso been made to ensure that there are no recurrences.
In the future, we will promote information sharing among
Group companies and bolster measures to prevent
environmental risks.
We will also continue to augment Group-wide efforts tominimize environmental impact by conducting contingency
training for emergency situations and other proactive
measures.

Among the targets specified under the Fifth Plan, thefocus of our activities in fiscal 2013 was on thedevelopment of human resources capable of taking
voluntary environmental initiatives as well as onconservation of biodiversity. As for human resources
development, we solicited employee engagement
through the use of our internal eco-point system, which
was introduced in fiscal 2012 with the aim of raising
environmental awareness among employees, while
encouraging wall greening activities at each plant. For
this project, employees participated in the planting of
seedlings and can observe growth records on the

Intranet. In the area of conservation of biodiversity, we
created a biotope designed to facilitate the developmentof an ecological network. (See pages 58–61 for moredetails.)

Wall greening at the Kyowa Plant (Aichi Prefecture)

Topic
A New Eco-Conscious Office Building
Constructed by TOYOTA L&F Hyogo
Co., Ltd.
In January 2012, TOYOTA L&F Hyogo Co., Ltd.,a consolidated subsidiary in Japan that engages insales and servicing of materials handling equipment,
constructed a new environment-conscious officebuilding in Nishinomiya-shi, Hyogo Prefecture. The newbuilding integrates leading-edge energy- and powersaving technologies and know-how into its design.
The company installed solar panels and wind power
generation systems on the premises to provide a
portion of electricity used within the building. All
common spaces, such as corridors, are equipped withenergy-efficient LED lighting. At the parking lot, there
are charging stands for plug-in hybrid vehicles, to whichelectricity is fed from the solar panels mounted on the
car park roof.
In the service workshop, various measures havebeen adopted to reduce the use of lighting during

daytime. Transparent shutters and skylights let in naturallight from outside.

Service workshop

What customers demandmost in materials handlingequipment are environmental
performance and safety. Lift
trucks available on themarket now range frominternal-combustion, electricand hybrid types to evenmore environmentally
Hideji Saito
conscious fuel cell lift trucks.
President,
TOYOTA L&F Hyogo Co., Ltd.
As our company engages insales and servicing of such equipment, we havealways felt that we should think about theenvironment in our everyday operations. This strong
belief is reflected in the design of our new officebuilding. The new building serves to convey thesignificance of taking environmental action both toemployees and customers visiting our building toparticipate in experience-based safety dojo or lift
truck training sessions. We will remain environmentallycommitted both internally and externally.

Reducing Environmental Risk and Establishing a Society inHarmony with Nature/Environmental Management

In order to prevent adverse environmental impact caused
by work activities of subcontractors (“outsourced work”),
we conduct a check on whether their particular activities
cause any impact on the environment by requiring them tosubmit an application form for construction operation inadvance.
In fiscal 2013, we started conducting environmental
patrols for outsourced work undertaken during a longholiday period when our environmental personnel are notavailable. We are reinforcing our efforts to prevent adverse
environmental impact by conducting an environmental
inspection on each venue of outsourced work.

Plant

Summary

Environmental
Initiatives

	Eliminating Adverse Environmental
Impact due to Outsourced Work70

trichloroethylene. We regularly report the survey results tolocal 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 fromgrease and oils, we have drilled observation wells at allplants to conduct regular checks.

Toyota Industries promotes the development of human resources capable of taking voluntary initiatives
toward the achievement of targets specified under the Fifth Environmental Action Plan.

New office building71Environmental Impact Flow andEnvironmental Accounting
In this section, we provide an overall picture of environmental impact resulting from our global businessactivities and report the results of environmental accounting (environmental conservation cost, environmental
conservation benefits and economic benefits of environmental conservation initiatives).

	Environmental Impact Flow
INPUT

Environmental
Impact Flow■Energy [consolidated]
Total consumption
Electricity
City gas
LPG
Petroleum products
Coal products
LNG

10,046 TJ*1
1,061,323 MWh
70,742 km3N
4,309 t4,848 kl
6,571 t3,259 tR&D/Design
Procurement*1: Terajoule is a unit used to measure heat.
1 TJ = 1012 joules

Production■Raw Materials [consolidated]
Raw material consumption
638,269 t■Water [consolidated]
Water consumption
4,007 km3
■Chemical Substances [Japan consolidated]
PRTR law*2 designated substances 1,400 t

Transportation/
Sales
Usage

*2: Short for Pollutant Release and Transfer Register, the PRTR law is ascheme whereby businesses measure the release and transfer of PRTR
designated pollutants and report their performance to the government.
The government then compiles this data and releases it to the public.

OUTPUT■Into the Air [consolidated]
755,395 t-CO2
CO2
Greenhouse gases other than CO24,500 t-CO2
CO2 from logistics
37,243 t-CO2
SOx (Sulfur oxides)
568 kgNOx (Nitrogen oxides)
144 t
VOC (Volatile organic compounds)
1,582 t■Chemical Substances [Japan consolidated]
Emissions/transfers of PRTR law
designated substances
599 t■Waste [consolidated]
Waste generation
99,677 t■Into Waterways [Japan consolidated]
Water pollutants
27 t
Discharge of treated wastewater
2,243 km3

Recovery/
Recycling	Environmental Accounting and On-Site Verification
Fiscal 2013 Environmental Accounting*3

On-Site Verification

Scope of data collection: Toyota Industries Corporation(April 1, 2012 – March 31, 2013)
TIBC Corporation*4(April 1, 2012 – June 30, 2012)

Every year, Toyota Industries Head Office’s Plant
Engineering & Environment Department takes the initiativein conducting on-site verification of the accuracy andconsistency of environmental data included in the Toyota
Industries Report. The results for fiscal 2013 are as follows.

*3: E nvironmental accounting data is collected in compliance with the Ministry of theEnvironment’s Environmental Accounting Guidelines 2005 Edition.
*4: T IBC Corporation was excluded from the scope of consolidation in July 2012 andsubsequently dissolved in January 2013.

n Environmental Conservation Cost
Category
Pollution prevention costs
Business Global environmental
area costs conservation costs
Resource recycling costs
Upstream/downstream costs
Management costs
Research and development costs
Social contribution activity costs
Environmental remediation costs
Total(Millions of yen)

FY2013
Investment
Expenses

FY2012
Investment
Expenses

516

771

257

1,028

113

3,168

345

3,264

10
570
2
80
14
1,219
0
1,872
−
6
37
21
692
7,707
8,399

32
721
−
49
263
1,231
3
1,260
−
8
3
9
903
7,570
8,473

n Environmental Conservation Benefits
Environmental Impact
CO2
Generation of waste products
Water

Comparison with Previous Fiscal Year
17,809 t decrease
14,648 t decrease
320,808 m3 decreasen Economic Benefits of Environmental Conservation Initiatives(Millions of yen)

Item
Revenue

Details
Returns from sale of recycled waste products
Energy cost reductions

Cost reduction

Cost reduction by resource savings (including reductionsin amount of water use and wastewater treatment costs)

Total

72

Toyota Industries Report 2013

Amount
3,347
626
227
4,200

On-Site Verification Sites
Toyota Industries Corporation• Kariya Plant (Textile machinery, compressors)
Nagakusa Plant (Vehicles)
Consolidated subsidiaries in Japan• HANDA Casting Company, Altex Co., Ltd.
Nagao Kogyo Co., Ltd.

Toyota Industries Report 2013

Financial Section / Corporate Informationn Financial SectionP

74− 82

Consolidated Eleven-Year SummaryP74− 75

Consolidated Balance SheetsP76− 77

Consolidated Statements of Income

P

78

Consolidated Statements of Comprehensive Income

P

79

Consolidated Statements of Changes in Net Assets

P

P

Consolidated Statements of Cash Flowsn Corporate Information

P

Board of Directors, Audit & Supervisory Board Members
and Managing Officers
Major Consolidated Subsidiaries

80− 8183− 87
P

P

82

83

84− 85Major Production Bases

P

86

Investor Information

P

87

Items to be Verified
1. Adequacy of the scope of data collection; validity of datacollection and calculation methods; validity of internalverification
2. Trustworthiness and accuracy of collected/calculated data as
well as data reported to the Head Office; accuracy of methods
reported to the Head Office
Results
1. The verified sites retained original data (evidence) for all
statistics, which were confirmed valid as were the scope andmethod of data collection.
2. All discrepancies found during verification have been corrected
after respective causes have been identified.
3. Considerations of improvements will be made for datacollected using complex collection methods that may result in
calculation errors.

Note:
For details on the consolidated financial statements, please refer to the separate
publication, which is also posted on the following Website:
www.toyota-industries.com

73

Consolidated Eleven-Year Summary

Toyota Industries Corporation
Years ended March 31
Millions of yen

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

¥1,615,244¥1,543,352¥1,479,839¥1,377,769¥1,584,252¥2,000,536¥1,878,398¥1,505,955¥1,241,538¥1,164,378¥1,069,218

For The YearNet sales
Operating income (loss)

77,09870,092

68,79822,002(6,621)

96,853

89,95464,04053,12052,63152,477

Ordinary income

86,83680,86673,911

31,756

14,343

126,488

108,484

80,63570,91258,97051,375

Net income (loss)

53,11958,59447,205(26,273)(32,767)

80,46059,46847,07743,35733,623

21,93389,459¥58,404

26,963¥ 104,495¥ 104,205¥ 129,023¥130,121¥111,321¥65,651¥69,607

Depreciation

57,954

59,83062,372

73,23887,21983,74474,44964,423

51,27749,26445,939Research and development expenses

39,05732,07027,78826,826

33,64636,75034,54831,16630,051

29,562

29,705170.36¥188.02(84.33)¥ (105.16)

170.35————257.43189.66146.02135.03101.9762.90

Total net assets per share

4,719.66

3,662.26

3,300.17

3,390.02

2,987.16

4,483.32

5,612.11

5,044.45

3,504.80

3,199.69

2,522.52

Cash dividends per share

55.00

50.00

50.00

30.00

40.00

60.00

50.00

38.00

32.00

24.00

22.00

Total assets¥3,243,779¥2,656,984¥2,481,452¥2,589,246¥2,327,432¥2,965,585¥3,585,857¥3,245,341¥2,326,824¥2,011,995¥1,650,391

Investment in tangible assets¥¥

38,254¥Per share of common stock (yen):
Net income (loss) per share—basic
Net income per share—diluted¥¥

151.51¥¥

257.50¥

189.88¥

146.16¥

135.09¥108.04¥

70.19

At Year-End
Total net assets

1,524,933

1,197,841

1,075,939

1,104,929

977,670

1,453,996

1,810,483

1,611,227

1,115,747

1,016,763

738,867

Common stock

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

68,046

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

312,207311,687

311,564

311,570

311,577

311,589

312,075

319,320

318,237

317,666

292,777¥ 151,299¥101,718¥ 153,661¥ 203,452

65,768¥ 188,805¥ 177,467¥ 131,784¥ 100,095

92,406¥ 103,183(274,210)(9,403)(187,574)(36,855)(114,217)(138,789)(164,446)(205,013)(128,230)(92,667)(95,120)

Cash FlowsNet cash provided by operating activities
Net cash used in investing activities
Net cash provided by (used in) financing activities

¥

7,050

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

120,971(33,992)(19,749)

85,17250,020(56,015)

57,775

179,359

296,811

195,566

317,590

188,011

121,284

108,569

112,596

100,535

77,212

136,929

4.1

5.4

4.5

(2.6)

(2.8)

5.1

3.5

3.5

4.1

3.8

2.7

Indices
Return on equity (ROE) (%)

1.8

2.3

1.9

(1.1)

(1.2)

2.5

1.7

1.7

2.0

1.8

1.3

4.8

4.5

4.6

1.6

(0.4)

4.8

4.8

4.3

4.3

4.5

4.9

Equity ratio (%)

45.4

43.0

41.4

40.8

40.0

47.1

48.8

49.7

48.0

50.5

44.8

¥ 155,234¥161,876¥ 150,481

71,608¥ 222,125¥ 191,007¥ 150,674¥ 128,381¥ 113,676

47,41243,51640,82539,91639,52836,09632,97730,99027,431

EBITDA (millions of yen)
Number of employees
1. Net income (loss) per share is computed based on the average number of shares for each year.
2. ROE and ROA are computed based on the average total net assets and total assets, respectively, for each year.
Investment securities are stated at market value.
3. Operating profit margin = Operating income (loss) / Net sales
4. Equity ratio = (Total net assets – Subscription rights to shares – Minority interests) / Total assets
5. EBITDA = Income before income taxes + Interest expenses – Interest and dividends income + Depreciation and amortization74

Toyota Industries Report 2013¥90,521
38,903¥¥

95,47225,030Consolidated Eleven-Year Summary

Return on assets (ROA) (%)
Operating profit margin (%)

Financial Section /Corporate Information

Cash and cash equivalents at end of year¥75Consolidated Balance Sheets

Toyota Industries Corporation
As of March 31, 2013 and 2012
Millions of yen

2013

Millions of yen

2012

AssetsCurrent assets:
Cash and deposits
Cash deposits for cash collection and deposit services
Trade notes and accounts receivable
Lease investment assets
Short-term investments
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other current assets
Allowance for doubtful accounts

780,517769,356

Fixed assets:
Property, plant and equipment:
		Buildings and structures
			Accumulated depreciation
			Buildings and structures, net
		 Machinery, equipment and vehicles
			Accumulated depreciation
			 Machinery, equipment and vehicles, net
		 Tools, furniture and fixtures
			Accumulated depreciation
			 Tools, furniture and fixtures, net
		Land		Construction in progress

365,308(226,436)
138,871864,534(646,319)
218,214
135,525(105,024)
30,500118,244
43,982354,136(212,723)
141,412790,804(610,658)
180,146
116,495(92,047)
24,448
116,526
18,519		Total property, plant and equipment

549,814481,053

Intangible assets:
		Goodwill
		Other intangible assets

122,003
46,04568,82437,952

		Total intangible assets

168,049

106,777

Investments and other assets:
		Investment securities
		Deferred tax assets
		Lease investment assets
		 Other investments and other assets
		 Allowance for doubtful accounts

1,598,437
12,304
93,572
41,231(148)

1,177,591
10,75876,56635,034(152)

		Total investments and other assets
Total fixed assets
Total assets

1,745,398
2,463,262
 ¥3,243,779

1,299,798
1,887,628¥2,656,984

Toyota Industries Report 2013¥180,146
183,920
30,2244,499
44,851
17,623
15,9582,923
570
178,378¥168,465
110,212
12,897
54,10537,61918,16912,5103525
165,018

Total current liabilities

659,095

579,527

Long-term liabilities:
Bonds payable
Long-term loans payable
Lease obligations
Deferred tax liabilities
Allowance for retirement benefits
Other long-term liabilities

213,584
236,318
101,883
440,356
52,77914,829187,238
249,183
85,754297,304
48,973
11,160Total long-term liabilities
Total liabilities

1,059,750
1,718,846

879,615
1,459,142

80,46280,462

105,898
492,578(48,405)

106,128455,042(50,266)

630,534

591,367

830,054(237)
13,163565,007(131)(14,763)

842,980
1,478
49,9391,524,933¥3,243,779

550,1122,310
54,051
1,197,841¥2,656,984

Net Assets
Shareholders’ equity:
Capital stock
		Authorized — 1,100,000,000 shares
		 Issued— 325,840,640 shares as of March 31, 2013				 325,840,640 shares as of March 31, 2012
Capital surplus
Retained earnings
Treasury stock		 13,632,854 shares as of March 31, 2013		 14,153,619 shares as of March 31, 2012
Total shareholders’ equity
Accumulated other comprehensive income:
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total accumulated other comprehensive income
Subscription rights to shares
Minority interests
Total net assets
Total liabilities and net assets

Consolidated Balance Sheets¥ 230,348
49,981
215,799
41,96433,047
66,67035,08840,762
23,83646,222(3,204)Current liabilities:
Trade notes and accounts payable
Short-term loans payable
Commercial paper
Current portion of bonds
Lease obligations
Accounts payable—otherAccrued income taxes
Deferred tax liabilities
Allowance for bonuses to directors and audit & supervisory board members
Other current obligations

Financial Section /Corporate Information

76

2012

Liabilities¥223,854
50,856
195,391
36,57092,24948,18333,72734,536
20,36836,358(2,740)Total current assets

2013

77

Consolidated Statements of Income

Consolidated Statements of Comprehensive Income

Toyota Industries Corporation
For the years ended March 31, 2013 and 2012

Toyota Industries Corporation
For the years ended March 31, 2013 and 2012
Millions of yen

Millions of yen

2013

2012

¥1,615,244
1,347,238
268,006¥1,543,352
1,301,617
241,734¥  170.36
170.35
4,719.66
55.00

10,00368,176
1,977
5,951
25,34860,184
171,641
70,092

9,071
21,084
784
825
5,277
37,043

9,070
17,933
1,159
—
6,545
34,70914,508
1,006—
11,78927,304
86,836

16,046
1,035
490
6,363
23,93680,866

—
—

4,599
4,599

6,710
6,710
80,12627,345(493)
26,851
53,275155¥53,119——
85,46523,382
1,311
24,69360,771
2,177¥58,594

Yen

78

Toyota Industries Report 2013¥  188.02—
3,662.26
50.00

2012

¥ 53,275¥60,771

265,277

76,752

(106)

(177)

30,444(6,820)

392

(216)

Other comprehensive income:
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Share of other comprehensive income of associates accounted for using equity method
Total other comprehensive income
Comprehensive income

296,008

69,537349,283

130,308

345,988

128,457

3,295

1,850

Profit attributable to:
Owners of the parent
Minority interests

Consolidated Statements of Income/Consolidated Statements of Comprehensive Income

Net income per share—basic
Net income per share—diluted
Net assets per share
Cash dividends per share

12,24074,452
1,739
8,076
32,20362,196
190,908
77,098

Income before minority interests

2013

Financial Section /Corporate Information

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses:
Sales commissions
Salaries and allowances
Retirement benefit expenses
Depreciation
Research and development expenses
OthersTotal selling, general and administrative expenses
Operating income
Non-operating income:Interest income
Dividends income
Gain on sales of marketable securities
Equity in net earnings of affiliated companies
Other non-operating income
Total non-operating income
Non-operating expenses:
Interest expenses
Loss on disposal of fixed assets
Equity in net losses of affiliated companies
Other non-operating expenses
Total non-operating expenses
Ordinary income
Extraordinary income:Gain on step acquisitions
Total extraordinary income
Extraordinary losses:
Loss on liquidation of subsidiaries and affiliates
Total extraordinary losses
Income before income taxes and minority interests
Income taxes—current
Income taxes—deferred
Total income taxes
Income before minority interests
Minority interests in income
Net income79Consolidated Statements of Changes in Net Assets

Toyota Industries Corporation
For the years ended March 31, 2013 and 2012
Millions of yen

2013

Millions of yen

Balance at the end of current period¥80,462

80,46280,462

		 Total changes of items during the period
Balance at the end of current period(131)(14,763)(8,075)

Net changes of items other than shareholders’ equity

27,927(6,688)

Total changes of items during the period

27,927(6,688)

13,163(14,763)

550,112480,248

Net changes of items other than shareholders’ equity

292,868

69,863

Total changes of items during the period

292,868

69,863842,980

550,112

2,310

2,132
178

Balance at the beginning of current period

(230)

(50)

Changes of items during the period

105,898

106,128455,042

412,029

Balance at the end of current period
Total accumulated other comprehensive income(15,584)(15,581)

Balance at the beginning of current period
Changes of items during the period

53,11958,59437,53543,013

Balance at the end of current period

492,578455,042

Treasury stock

Balance at the end of current period(50,266)(50,703)

(109)

(5)

Changes of items during the period

Subscription rights to shares
Balance at the beginning of current period
Changes of items during the period

1,971

441

Net changes of items other than shareholders’ equity

(832)

1,861

436

Total changes of items during the period

(832)

178

Balance at the end of current period(48,405)(50,266)

1,478

2,310

591,367

547,968

54,05145,589Balance at the beginning of current period

Balance at the end of current period
Minority interests

Changes of items during the period

Balance at the beginning of current period
Changes of items during the period(15,584)(15,581)

Net changes of items other than shareholders’ equity(4,111)

8,461

		
Net income

53,11958,594

Total changes of items during the period(4,111)

8,461

49,93954,051

1,197,841

1,075,939

Dividends from surplus(15,584)(15,581)Net income

53,11958,594

		 Repurchase of treasury stock

(109)

(5)

		 Disposal of treasury stock

1,741

391

		 Total changes of items during the period

39,16643,399Balance at the beginning of current period

Balance at the end of current period

630,534

591,367

Changes of items during the period

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Balance at the beginning of current period

565,007488,277

Changes of items during the period

Balance at the end of current period
Total net assets

Repurchase of treasury stock

(109)

(5)

Disposal of treasury stock

1,741

391

		 Net changes of items other than shareholders’ equity

265,047

76,729Net changes of items other than shareholders’ equity

287,924

78,503

		 Total changes of items during the period

265,047

76,729Total changes of items during the period

327,091

121,902

Balance at the end of current period

830,054565,007¥1,524,933¥1,197,841

Toyota Industries Report 2013

Balance at the end of current period

Consolidated Statements of Changes in Net Assets

		 Dividends from surplus

Financial Section /Corporate Information

		 Disposal of treasury stock		 Total changes of items during the period
Total shareholders’ equity

80

(177)

(237)

Balance at the end of current period
Foreign currency translation adjustment

		
Net income

		 Repurchase of treasury stock

(177)

(106)

(50)

		 Total changes of items during the period

Balance at the beginning of current period(106)

Total changes of items during the period(230)

Changes of items during the period
		 Dividends from surplus

Net changes of items other than shareholders’ equity

106,179

Retained earnings
Balance at the beginning of current period¥46

Changes of items during the period

106,128

Changes of items during the period
		 Disposal of treasury stock¥(131)

Balance at the beginning of current period¥80,462

Capital surplus
Balance at the beginning of current period

2012

Deferred gains or losses on hedges

Capital stock
Balance at the beginning of current period

2013

2012

Shareholders’ equity

81Consolidated Statements of Cash Flows

Board of Directors, Audit & Supervisory Board
Members and Managing Officers(As of June 13, 2013)

Board of Directors

Toyota Industries Corporation
For the years ended March 31, 2013 and 2012
Millions of yen

Toyota Industries Report 2013

¥80,126
90,7564,516
26(30,156)
14,508(825)(475)(6,041)
2,929
4,981
160,346
30,181(14,688)(24,540)
151,299¥85,465
87,368—(159)(27,004)
16,046490(47,043)(13,897)
25,307(5,357)
121,216
26,992(15,940)(30,549)
101,718(112,430)
8,137(14,679)987(68,503)
(505)
—
(13)
275
(64,435)(23,043)(274,210)(76,638)
8,408(1,924)
1,720(5,568)
—
1,228
(27)
374
70,161(7,137)(9,403)51,78645,425(49,382)
30,000(54,125)(109)(15,584)
(435)
1,899
(2,423)7,050(1,591)(117,451)
296,811¥179,359

27,63650,482(49,342)
35,604(30,761)(5)(15,581)
(478)
1,220
(8,495)
10,279(1,348)101,244
195,566¥ 296,811

ChairmanVice Chairman

President

Tetsuro Toyoda

Kazunori Yoshida

Akira Onishi

Executive Vice President

Executive Vice President

Executive Vice President

Chiaki Yamaguchi

Kazue Sasaki

Hirotaka Morishita

Senior Managing Directors

Shinya Furukawa
Masaharu Suzuki
Norio Sasaki
Toshifumi Ogawa

Directors

Masafumi KatoToshifumi Onishi
Takaki Ogawa

Kan Otsuka
Fujio Cho

Audit & Supervisory Board Members
Full-Time Audit & Supervisory Board Members

Shigetaka Yoshida
Kakuo Ishikawa

Audit & Supervisory Board Members

Katsuaki Watanabe
Toshio Mita
Hans-Juergen MarxManaging Officers
Senior Managing Officers

Kohei Nozaki
Taku Yamamoto
Keiichi Fukunaga
Hiroaki Asai
Hirooki Fujiwara

Managing Officers

Yukihisa Tsuchimoto
Takashi Ito
Toshiya Yamagishi
Junichi Harada
Mikihiko Okamoto
Yasuhiro Murata
Yojiro Mizuno
Masahiro Kawaguchi
Susumu Toyoda

Yuji Ishizaki
Keizo Hara
Kiyotsugu Kurimoto
Masafumi Kunito
Toshihiko Shimizu
Koichi Ito
Yasushi Kawai
Hiroaki Kayukawa
Kazuyuki Yamaguchi

Consolidated Statements of Cash Flows/Board of Directors,
Audit & Supervisory Board Members and Managing Officers

82

2012

Financial Section /Corporate Information

Cash flows from operating activities:
Income before income taxes and minority interests
Depreciation and amortization
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Interest and dividends income
Interest expenses
Equity in net (earnings) losses of affiliates(Increase) decrease in receivables(Increase) decrease in inventories
Increase (decrease) in payables
Others, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes (paid) refunded
Net cash provided by operating activities
Cash flows from investing activities:
Payments for purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Payments for purchases of investment securities
Proceeds from sales of investment securities
Payments for acquisition of subsidiaries’ stock resulting in change in scope of consolidation
Payments for sales of subsidiaries’ stock resulting in change in scope of consolidation
Proceeds from sales of subsidiaries’ stock resulting in change in scope of consolidation
Payments for loans madeProceeds from collections of loans
Net (increase) decrease in time deposits
Others, net
Net cash used in investing activities
Cash flows from financing activities:
Increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of bonds
Repayments of bonds
Payments for repurchase of treasury stocks
Cash dividends paid
Cash dividends paid to minority shareholders
Proceeds from payment by minority shareholders
Others, net
Net cash provided by financing activities
Translation adjustments of cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

2013

83

Major Consolidated Subsidiaries(As of March 31, 2013)*Including indirect investment

Segment

Company Name

Location

Ownership
Ratio* (%)

Business Activities

Japan

Materials
Handling
Equipment

Automobile

Logistics

Ownership
Ratio* (%)

EuropeBT Products AB

MjölbyProduction of materials handling equipment

100.0

Aichi Corporation

Ageo-shi, Saitama

Production of aerial work platforms

52.2

Toyota Industries Europe AB

MjölbyHolding company for materials handling equipment business in Europe

100.0

TOYOTA L&F Fukui Co., Ltd.

Fukui-shi, Fukui

Sales and servicing of materials handling equipment

100.0

Toyota Material Handling Europe AB

MjölbyEuropean headquarters for materials handling equipment business

100.0

TOYOTA L&F Tokyo Co., Ltd.

Shinagawa-ku, Tokyo

Sales and servicing of materials handling equipment

100.0

Toyota Material Handling Sweden AB

BrommaSales and servicing of materials handling equipment

100.0

Nishina Industrial Co., Ltd.

Nagano-shi, Nagano

Production of materials handling equipment and construction machinery parts

97.5

NorwayToyota Material Handling Norway AS

Trondheim

Sales and servicing of materials handling equipment

100.0

TOYOTA L&F Shizuoka Co., Ltd.

Shizuoka-shi, Shizuoka

Sales and servicing of materials handling equipment

100.0

Finland

Toyota Material Handling Finland OY

VantaaSales and servicing of materials handling equipment

100.0

HANDA Casting Company

Handa-shi, Aichi

Production of foundry parts

100.0

LatviaToyota Material Handling Baltic SIA.

Riga

Sales and servicing of materials handling equipment

100.0

Unica Co., Ltd.

Kiyosu-shi, Aichi

Production of in-house transporters

100.0

PolandToyota Material Handling Polska Sp. z o.o.

Pruszków

Sales and servicing of materials handling equipment

100.0

TOYOTA L&F Hyogo Co., Ltd.

Nishinomiya-shi, Hyogo

Sales and servicing of materials handling equipment

100.0

Denmark

Toyota Material Handling Danmark A/SSlangerup

Sales and servicing of materials handling equipment

100.0

Tokaiseiki Co., Ltd.

Iwata-shi, Shizuoka

Production of compressor and engine parts

100.0

U.K.

Toyota Material Handling UK Limited

Slough, Berkshire

Sales and servicing of materials handling equipment

100.0

Altex Co., Ltd.

Hamamatsu-shi, Shizuoka

Production of compressor parts

100.0

Germany

Toyota Material Handling Deutschland GmbH

Langenhagen

Sales and servicing of materials handling equipment

100.0

Izumi Machine Mfg. Co., Ltd.

Obu-shi, Aichi

Production of specialized machine tools, friction welding machines, automotive parts

100.0

Toyota Industrial Equipment, S.A.

AncenisProduction of materials handling equipment

100.0

Nagao Kogyo Co., Ltd.

Nagoya-shi, Aichi

Production of compressor, materials handling equipment and weaving machinery parts

100.0

Toyota Material Handling France SAS

Marne La ValléeSales and servicing of materials handling equipment

100.0

Miduho Industry Co., Ltd.

Nagoya-shi, Aichi

Production of automotive, compressor and materials handling equipment parts

100.0

Toyota Material Handling Europe Brussels NV/SA Brussels

Sales and marketing of materials handling equipment

100.0

Iwama Loom Works, Ltd.

Oguchi-cho, Niwa-gun, Aichi Production of compressor parts

100.0

Toyota Material Handling Belgium NV/SA

Wilrijk

Sales and servicing of materials handling equipment

100.0

Tokyu Co., Ltd.

Oguchi-cho, Niwa-gun, Aichi Production of compressor parts and industrial machinery

100.0

Netherlands

Toyota Material Handling Nederland B.V.

Ede

Sales and servicing of materials handling equipment

100.0

KTL Co., Ltd.

Koto-ku, TokyoManagement and operation of distribution centers

50.5

Spain

Toyota Material Handling España, S.A.

Barberá del VallésSales and servicing of materials handling equipment

100.0

Wanbishi Archives Co., Ltd.

Minato-ku, Tokyo

Data storage, management, collection and delivery services

100.0

Austria

Toyota Material Handling Austria GmbH

Wiener Neudorf

Sales and servicing of materials handling equipment

100.0

Asahi Security Co., Ltd.

Minato-ku, Tokyo

Cash collection and delivery and cash proceeds management

100.0

Czech Republic Toyota Material Handling CZ s.r.o.

Rudna

Sales and servicing of materials handling equipment

100.0

Advanced Logistics Solutions Co., Ltd.

Obu-shi, Aichi

Planning, design and operation of distribution centers

100.0

Slovakia

Toyota Material Handling Slovensko s.r.o.

Bratislava

Sales and servicing of materials handling equipment

100.0

Taikoh Transportation Co., Ltd.

Kariya-shi, Aichi

Land transportation services

53.1

Hungary

Toyota Material Handling Hungary Kft.

Budapest

Sales and servicing of materials handling equipment

100.0

Ikeda-cho, Ibi-gun, Gifu

Production of textile machinery and materials handling equipment parts

100.0

Romania

Toyota Material Handling Romania s.r.l.

Bucharest

Sales and servicing of materials handling equipment

100.0

Chiyoda-ku, Tokyo

Production of motors and inverters for industrial machinery

60.0

Switzerland

Toyota Material Handling Schweiz AG

ZürichSales and servicing of materials handling equipment

50.0

SKM Corporation

Kariya-shi, Aichi

Total construction management, security management, civil engineering/construction design work andreal estate management

100.0

CESAB Carrelli Elevatori S.p.A.

Bologna

Production of materials handling equipment

100.0

Sun Staff, Inc.

Kariya-shi, Aichi

Personnel placement, contract office staffing

100.0

Sun Valley Inc.

Kariya-shi, Aichi

Sales of goods, travel agency, organizing and running of events

100.0

Shine’s Co., Ltd.

Kariya-shi, Aichi

Management and operation of employee clubs

100.0

Toyota Industries Well Support Corporation Kariya-shi, Aichi

Planning and operation of benefit programs; administrative processing services for payroll accounting, etc.

100.0

Toyoda High System, Incorporated

Kariya-shi, Aichi

Planning, development, formulation and operation of information infrastructure and systems

100.0

Sun River Co., Ltd.

Suita-shi, Osaka

Sports facilities, real estate lease, restaurant management

100.0

SwedenMaterials
Handling
Equipment

Company Name

Location

Business Activities

Ownership
Ratio* (%)

U.S.A.

Italy

Automobile

Bologna

Sales and servicing of materials handling equipment

100.0

Toyota Material Handling Greece SA

Markopoulo, Attica

Sales and servicing of materials handling equipment

100.0

Germany

TD Deutsche Klimakompressor GmbH

Bernsdorf

Production of compressors

65.0

Toyota Textile Machinery Europe, AG

Uster

Sales and servicing of textile machinery

100.0

Textile Machinery Switzerland
OthersUster Technologies AG

Uster

Production of yarn quality measurement instruments and cotton classing instruments

100.0

SwedenToyota Industries Finance International AB

MjölbyFunding, loan, other financial services

100.0

India

Toyota Material Handling India Pvt. Ltd.

Delhi

Sales and servicing of materials handling equipment

75.0

Vietnam

Toyota Industrial Equipment Vietnam Co., Ltd.

Hung Yen

Production of materials handling equipment parts

90.0

Australia

Toyota Material Handling Australia Pty Limited

New South Wales

Sales and servicing of materials handling equipment

100.0

BT Manufacturing (Foshan) Co., Ltd.

Foshan, Guandong

Production of materials handling equipment

100.0

Raymond Manufacturing (Dalian) Co., Ltd.

Dalian, Liaoning

Production of materials handling equipment

100.0

Toyota Material Handling (Shanghai) Co., Ltd.

Shanghai

Sales of materials handling equipment

75.0

OthersMaterials
Handling
Equipment

China

Portland, Oregon

Production of materials handling equipment parts

100.0

Indiana Hydraulic Equipment, Corp.

Franklin, Indiana

Production of materials handling equipment parts

100.0

Industrial Components and Attachments, Inc.

Portland, Oregon

Holding company for materials handling equipment business in the U.S.A.

100.0

BrazilToyota Material Handling Mercosur Indústria eSão Paulo
Comércio de Equipamentos Ltda

Sales and servicing of materials handling equipment

100.0

North Vernon Industry Corp.

North Vernon, Indiana

Production of materials handling equipment parts

100.0

India

Kirloskar Toyota Textile Machinery Pvt. Ltd.

Bangalore

Production of textile machinery and automotive parts

95.1

Raymond-Muscatine Inc.

Muscatine, Iowa

Production of materials handling equipment

100.0

Indonesia

P.T. TD Automotive Compressor Indonesia

Bekasi

Production of compressors

50.1

The Raymond Corporation

Greene, New York

Production of materials handling equipment

100.0

Toyota Industry (Kunshan) Co., Ltd.

Kunshan, Jiangsu

Production of automotive parts and materials handling equipment, etc.

63.7

Toyota Industrial Equipment Mfg., Inc.

Columbus, Indiana

Production of materials handling equipment

100.0

TD Automotive Compressor Kunshan Co., Ltd.

Kunshan, Jiangsu

Production of compressors

59.5

Toyota Material Handling North America, Inc.

Columbus, Indiana

North American headquarters for materials handling equipment business

100.0

Toyota Material Handling, U.S.A., Inc.

Irvine, California

Sales of materials handling equipment

100.0

G. N. Johnston Equipment Co., Ltd.

Mississauga, Ontario

Sales and servicing of materials handling equipment

100.0

Michigan Automotive Compressor, Inc.

Parma, Michigan

Production of compressors

TD Automotive Compressor Georgia, LLC

Pendergrass, Georgia

Production of compressors

77.4

Production of compressor parts

100.0

Toyoda Textile Machinery, Inc.

Charlotte, North Carolina Sales and servicing of textile machinery

100.0

OthersToyota Industries North America, Inc.

Columbus, Indiana

100.0

Holding company in the U.S.A.

Automobile

China
Logistics
Textile Machinery

60.0

Textile Machinery U.S.A.

Toyota Industries Report 2013

Toyota Material Handling Italia S.r.l.

GreeceCascade Corporation

Toyota Industries Compressor Parts America, Co. Pendergrass, Georgia
U.S.A.

Belgium

China

Toyota Industries Trading & Logistics (China) Co.,
Shanghai
Ltd.

Import/export, Chinese domestic distribution, operation of distribution centers

100.0

China

Toyota Textile Machinery (Shanghai) Co., Ltd.

ShanghaiInstallation and servicing of textile machinery

100.0

BrazilToyota Máquinas Têxteis Brasil Ltda

São Paulo

Sales and servicing of textile machinery

100.0

n Affiliates Accounted for by the Equity Method
Materials
Handling
Equipment

Japan

TOYOTA L&F Kinki Co., Ltd.

Osaka-shi, Osaka

Sales and servicing of materials handling equipment

33.8

Automobile

PolandToyota Motor Industries Poland Sp. z o.o.

Jelcz-Laskowice

Production of diesel engines

40.0

Major Consolidated Subsidiaries

U.S.A.

FranceFinancial Section /Corporate Information

Country

Canada84

Business Activities

100.0

North America

Automobile

Location

Sales and servicing of materials handling equipment*Including indirect investment

Materials
Handling
Equipment

Company Name

Akita-shi, Akita

ELETT Corporation

Segment

Country

TOYOTA L&F Akita Co., Ltd.

Textile Machinery Hara Corporation

Others*Including indirect investment

Segment85

Major Production Bases

Investor Information(As of March 31, 2013)

n Major Plants (Parent Company)
Plant

Location

Main Products

Start of Operations(As of March 31, 2013)

Corporate Head Office

Stock Exchange Listings

TOYOTA INDUSTRIES CORPORATIONTokyo, Osaka and Nagoya (Ticker Code: 6201)

Kariya Plant

Kariya-shi, Aichi

Textile machinery, compressors

1927

2-1, Toyoda-cho, Kariya-shi, Aichi, 448-8671, Japan

Obu PlantObu-shi, Aichi

Parts for compressors

1944

Telephone: +81-(0)566-22-2511

Number of Shareholders

Kyowa Plant

Obu-shi, Aichi

Electronic equipment, automotive press dies, production facilities, engine parts

1953

Nagakusa Plant

Obu-shi, Aichi

Vehicles1967

Facsimile: +81-(0)566-27-5650

20,275

Date of Establishment

Independent Accountant

November 18, 1926

PricewaterhouseCoopers Aarata

Takahama Plant

Takahama-shi, Aichi

Materials handling equipment, materials handling systems

1970

Hekinan Plant

Hekinan-shi, Aichi

Diesel engines, gasoline engines

1982

Higashichita Plant

Handa-shi, Aichi

Foundry parts, diesel engines

2000

Higashiura Plant

Higashiura-cho, Chita-gun, Aichi Parts for compressors

2002

Anjo Plant

Anjo-shi, Aichi

2007

Electronic equipment

Sumitomo Fudosan Shiodome Hamarikyu Bldg.

Common Stock

8-21-1 Ginza, Chuo-ku, Tokyo, 104-0061, Japan

No par value

Transfer Agent
Special Account Management Institution

Authorized: 1,100,000,000 shares
Issued:325,840,640 shares

Mitsubishi UFJ Trust and Banking Corporationn Major Plants (Outside Japan)

Capital Stock

1-4-5, Marunouchi, Chiyoda-ku, Tokyo, 100-8212, Japan

80,462 million yen

Major Shareholders (Top 10)
Number of Shares Held(Thousands)

Percentage of Total
Shares in Issue (%)

Toyota Motor Corporation

76,60023.51

DENSO Corporation

29,647

9.10

Towa Real Estate Co., Ltd.

15,697

4.82

Toyota Tsusho Corporation

15,294

4.69

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

9,677

2.97

Name

5
■
8■
9
■
7
■
6
■

2
3 ■
■
1
■
4
■

11 ■
12
■
10
■
13
■

Nippon Life Insurance Company

6,735

2.07

Aisin Seiki Co., Ltd.

6,578

2.02

Japan Trustee Services Bank, Ltd. (Trust Account)

6,352

1.95

Toyota Industries Corporation Employee Ownership Program

5,416

1.66

State Street Bank Client Omnibus OM04

Company NameCountry

Location

Main Products

Year of Foundation

Toyota Industrial Equipment Mfg., Inc.

U.S.A.

Columbus, Indiana

Materials handling equipment

1988

2

The Raymond Corporation

U.S.A.

Greene, New York

Materials handling equipment

1922

3

Michigan Automotive Compressor, Inc.

U.S.A.

Parma, Michigan

Compressors

1989

4

TD Automotive Compressor Georgia, LLC

U.S.A.

Pendergrass, Georgia

Compressors

2004

5

BT Products AB

SwedenMjölbyMaterials handling equipment

1946

6

CESAB Carrelli Elevatori S.p.A.

Italy

Bologna

Materials handling equipment

1942

7

Toyota Industrial Equipment, S.A.

FranceAncenisMaterials handling equipment

1995

8

TD Deutsche Klimakompressor GmbHGermany

Bernsdorf

Compressors

1998

9

Toyota Motor Industries Poland Sp. z o.o.

PolandJelcz-Laskowice

Diesel engines

2002

10 Kirloskar Toyota Textile Machinery Pvt. Ltd.

India

Bangalore

Automotive parts, textile machinery

1995

11 Toyota Industry (Kunshan) Co., Ltd.

China

Kunshan, Jiangsu

Automotive parts, materials handling equipment, etc.

1994

12 TD Automotive Compressor Kunshan Co., Ltd.

China

Kunshan, Jiangsu

Compressors

2005

13 P.T. TD Automotive Compressor Indonesia

Indonesia

BekasiCompressors

2011

1.29
54.07

Notes: 1.	Toyota Industries Corporation also holds 13,632 thousand shares of treasury stock but is excluded fromthe above list.
2. Shares held for the purpose of trust services of respective banks are as follows:		 The Master Trust Bank of Japan, Ltd. (Trust Account)
9,677 (Thousands)
		 Japan Trustee Services Bank, Ltd. (Trust Account)
6,352 (Thousands)

Distribution of Shares
0.4%
4.2%
8.4%

Japanese corporate entities
Foreign corporate entities and others

17.0%

48.2%

Japanese financial institutions

Major Production Bases/
Investor Information

1

4,192
176,193

Financial Section /Corporate Information

Total

Individuals, etc.
Treasury stock

21.8%

86

Toyota Industries Report 2013

Japanese brokerages

872-1, Toyoda-cho, Kariya-shi, Aichi 448-8671, Japan
Telephone: +81-(0)566-22-2511 Facsimile: +81-(0)566-27-5650
www.toyota-industries.com

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