Tadashi Ishikawa

Tetsuro Toyoda

ChairmanPresident

Message from the Chairman and President
In the fiscal year ended March 31, 2008 (fiscal 2008), Toyota

and employees and their families. We are determined toIndustries recorded consolidated net sales of ¥2,000.5 billion

continue our unflagging efforts to further raise corporate value

and ordinary income of ¥126.4 billion, both representing

by maintaining our commitment to creating products that

historic highs and marking the ninth consecutive year ofbenefit society.

increases in sales and income.
Since our founding, we have consistently devoted

October 2005, we are targeting an increase in net sales fromourselves to manufacturing. Guided by our spirit of¥1,500.0 billion to more than ¥2,000.0 billion and an increase“contributing to society through manufacturing,” which has

in ordinary income from ¥80.0 billion to ¥140.0 billion for the

been handed down through successive generations, we havefive-year period ending March 31, 2011. The end of fiscal

steadily expanded our business fields over the years from2008 marks two years since the launch of the Medium-Termtextile machinery to such domains as vehicles, automotive

Management Plan. Looking back, we believe that in eachparts and materials handling equipment.

of the initial two years we attained solid progress toward

Our positive performance results and wide-ranging
businesses are the fruition of our passion for manufacturing

4

Under our Medium-Term Management Plan announced inrealizing the plan’s overriding objectives.
Turning our focus to the fiscal year ending March 31,

and also reflect the tremendous support of numerous

2009, the likelihood of an unprecedentedly unstable businessstakeholders, including our shareholders, customers,environment precludes optimism. This is evidenced by abusiness partners, residents of respective local communities

continued surge in raw materials prices as a result of demand

Toyota Industries Report 2008

outstripping supply worldwide, with prices rising 70% for ironmanufactured in North America to other regions. Equally,ore and tripling for coal in particular. The price for steel, a

we will focus on core markets other than North America. In

raw material required in substantial amounts to manufacture

Europe, we will strive for an early realization of benefits arisinglift trucks, is projected to increase significantly versus thefrom sales channel integration of TOYOTA and BT brands thatbeginning of 2008. As for crude oil, even without speculative

is directed toward sales expansion in fast-growing Central

funds and surplus funds that are flowing in the oil market as

and Eastern Europe. Also, in BRICs countries and othera main factor, we are still faced with historically high prices

emerging markets, we will undertake concerted efforts todue to unabated demand from emerging nations. In addition,enhance our sales and service networks, particularly in China

the situation also remains uncertain in view of exchange

and India, to capitalize on the significant increase in demand.

rate fluctuations and volatile stock markets. Moreover, theMoreover, Toyota Industries will aim to further expand sales

subprime loan debacle is casting a longer shadow over thethrough implementing detailed sales management in Japan

U.S. economy than expected, whereby a delayed economic

and overseas by going back to the basics. Further, we will

recovery may in turn negatively impact the global economy.

work to speed up the development of revolutionary new

Under such challenging conditions, we realize that suchproducts and key components to improve competitiveness.

changes in the external environment are not a temporary

As one strategic move, in January 2008 we consolidated

situation and will strive to enhance overall quality as thesales with development and production operations of theToyota Industries Group through outside-the-box thinking and

Takahama Plant. Facilitating close cooperation among these

fresh perspectives.

three areas of operations will enable us to identify more

Turning to business-specific issues, in the Materials

focused customer needs in making a concerted effort toHandling Equipment Segment an overriding challenge willquickly provide excellent products in terms of safety, thebe how to compensate for the likely decrease in the Northenvironment, quality and cost.

American market. In North America, we will continue ourIn the Automobile Segment, we will strive for sustained

efforts to increase the market shares of both TOYOTA

growth by contributing to Toyota Motor Corporation’s globaland RAYMOND brands as well as aim to export productsstrategy. In the Vehicle Business, Toyota Industries initiatedProgress of Medium-Term Management Plan

Ordinary income(¥ billion)

108.4

97.0

80.6

Over ¥2,000.0Net sales(¥ billion)¥140.0126.4

1,878.3

2,000.5

2,000.0

1,505.9

Medium-term
management
plan*(FY) 06

070809(forecast)

11(target)*Announced Oct. 2005

Toyota Industries Report 20085

consigned production of the Mark X ZiO in fiscal 2008. We

more than a minimal impact on global warming. Combining

have taken this opportunity to upgrade the capabilities of ourthe collective wisdom of people comprising the Group andproduction line, which previously specialized exclusively inaiming to create a sustainable society, we intend to makecompact vehicles, to include midsize and luxury models. We

a concerted, proactive effort to develop new technologies

aim to further improve quality, cost and delivery in our efforts

and products contributing to a substantial reduction into create manufacturing plants that can flexibly respondenvironmental loads, promote innovation in production

to changes in volume and vehicle models. In the Engine

technologies and processes as well as establish an internalBusiness, the implementation of environmental regulations

structure to reduce total CO2 emissions volume.

and soaring crude oil prices are spurring automakers
worldwide to accelerate the development and sales of

involved social welfare, nature and environmental conservation

diesel engine vehicles. Accordingly, we plan to strengthen

as well as a commitment to local communities. In May 2008,

the structure to speed up development of clean diesel

we established the Volunteer Support Center to further

engines in line with continued market expansion. In the Car

strengthen cooperation with local communities as members

Electronics Business, we expect the hybrid vehicle marketof society. We plan to use the center to collect and transmit

to undergo rapid growth for the foreseeable future. Drawing

volunteer-related information and as a base to facilitateon our extensive proprietary technologies cultivated overparticipation in volunteer activities. While working to enhance

the years, we will focus primarily on creating technologies

the functions of the center, we aim to push ahead withfor realizing compact, lightweight and lower-cost devices

providing sustainable programs from a global perspective.

while developing new products. In the Car Air-Conditioning

Regarding compliance-related activities, Toyota Industries

Compressor Business, indicative of rising environmental

considers it essential to provide education targeting allawareness, increasingly strong demand is expected for car

Toyota Industries Group employees in an effort to instill a

air-conditioning compressors with greater fuel economy incompliance-oriented corporate culture. Such educational

developed countries, while a balance between performance

programs, which have long been provided to managerial-level

and cost will be a key requirement in emerging markets. We

staff, have been expanded to include all employees. We havebelieve such needs are likely to become progressively diverse

also formulated business conduct guidelines for employees atin the future, and with this in mind, we will aim to expand

overseas Group companies in accordance with local cultures,sales by launching new products matched to market andcustoms and situations of each country/region as a means ofvehicle characteristics. At the same time, we will continue

raising awareness.

to pursue product distinctiveness through unrivaled newWe also consider human resources development to betechnologies, focusing on new refrigerants and serializing

an extremely important theme. Our efforts focus on threeelectrically driven compressors.

initiatives: refine technical skills, which constitute the origins

Toyota Industries nevertheless is facing an extremely harshof manufacturing; acquire abilities to solve problems throughbusiness climate. Even in such an inhospitable environment,

the Toyota Production System (TPS), quality control and otherit is absolutely essential that we carry out all imperative tasks

management skills; and foster teamwork featuring a spirit ofwith a view toward the medium term.

harmony and abundant humanity. As an example of refining

In addition, fulfilling our corporate social responsibilities

technical skills, we have been providing practical training onwith the utmost sincerity, beginning with consideration forassembling the Type G automatic loom. Originally completed

the environment, social contribution and the developmentin 1924 by company founder Sakichi Toyoda, this automaticof human resources, will serve as the base of corporate

loom enables automatic shuttle replacement and supplying

activities.

of weft yarn without any loss of speed during high-speed

Today, various environmental problems are posing

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Toyota Industries’ social contribution activities haveoperation. The machine also is equipped with a mechanism

increasingly serious threats to our planet. As a company

that automatically stops operations when the warp yarn

involved in manufacturing, Toyota Industries is particularlybreaks, thereby preventing the outflow of defects to post-

attuned to those issues associated with climate changes.

processes. Using this ingenuity-filled product, we are providing

Moreover, the entire Toyota Industries Group recognizes thatyoung employees with practical lessons on manufacturing

manufacturing processes and usage of our products exert

while passing on the legacy of Sakichi’s design concepts.

Toyota Industries Report 2008

Tetsuro Toyoda
President

In addition, as one example of our achievements in

In closing, we ask our shareholders, customers, businessactively promoting the development of excellent humanpartners, residents of local communities and employees andresources, in fiscal 2008 we earned a gold medal in thetheir families for their continued support and guidance.

mechanical device control category at the International Skills
Festival for All, Japan 2007, and three gold medals at theNational Skills Competition. This accomplishment is not onlyAugust 2008

attributable to the skills of individual participants but also
the result of our strengths as a company, which include thewealth of technologies we have accumulated to date as wellas the daily guidance provided to respective participants bysenior associates and supervisors. Looking ahead, we remain

Tadashi Ishikawa
Chairmancommitted to continuous development of human resources,
which will contribute to further enhancing our corporate value.
Starting from the fiscal year ended March 31, 2008,
we have combined the Annual Report and the Social andEnvironmental Report. This move stems from our belief that

Tetsuro Toyoda
President

our business activities and corporate social responsibility
activities are inextricably linked in our daily business
operations. It is therefore our sincere intent to fulfill ourcorporate social responsibility through our business activities.

Toyota Industries Report 20087