Review of Operations

Automobile Segment
The Automobile Segment, made up of the vehicle, engine, car air-conditioning
compressor, foundry parts, and automotive electronics businesses, holds a dominant 68
percent portion of Toyoda’s consolidated sales.
Sales for the Automobile Segment during the fiscal year ended March 31, 2000, were¥423.4 billion, up 16 percent from the previous year.
Vitz (Yaris): Toyota’s 1,000 cc and 1,300 cc classglobal strategic cars, with advances in safety technology
and low fuel consumption, have been highly acclaimed
in both the domestic and European markets.

Vehicle Business
The vehicle business accounts for the largest portion of sales in the Automobile Segment.
Toyoda currently manufactures two Toyota brand models, the Vitz (exported to Europe asthe Yaris), Toyota’s global strategic small car, and the Sprinter Carib (exported as theCorolla Wagon), a compact station wagon. These two models are manufactured underconsignment from Toyota Motor Corporation (TMC) and are all sold to TMC.
As a result of the sluggish domestic automobile market, the number of Sprinter Caribs(Corolla Wagons) sold in the past fiscal year fell 33 percent, compared to the previous year,
to 28,529 units. However, domestic and export sales of the Vitz (Yaris), which commenced
production in January 1999, grew to 224,100 units. Overall unit sales increased to 266,574
units, up 34 percent from the previous fiscal year.
Total sales reached ¥191.5 billion, up 37 percent from the previous fiscal year.
Note: Production of the Starlet, a 1,300 cc class car, was terminated in July 1999. The number ofStarlets sold during the past fiscal year was 13,945 units. The Vitz (Yaris) is the replacement
model for the Starlet.

1CD Engine: At Toyota, the common rail system
was adopted for the first time for the small-sized direct
injection diesel engine. The 2,000 cc engine delivers low
fuel consumption, yet with high power.

Engine Business
The major products in Toyoda’s engine business are diesel and gasoline engines for
Toyota brand automobiles and forklifts. All automobile engines are sold to TMC, andforklift engines are mounted in forklifts manufactured by Toyoda.
Total diesel engines sold during the fiscal year declined
15 percent, compared to the previous year, to 177,180
units. This result reflects a weak domestic automobile

Car Air-Conditioning
Compressor Unit Sales(Years ended March 31)

market and a 16 percent decline in shipments of C-type
diesel engines, a core product. These results were partly(Million Units)
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offset by sales of 14,981 direct injection 1CD-type diesel
engines for Toyota’s Avensis, which is produced
exclusively for the European market.

9Total gasoline engines sold during the fiscal year fell 7
percent, compared to the previous year, to 164,026 units.

6This result mainly reflects a drop in production of S-typeengines. However, sales of the new E-type engines for
7SBU16 Compressor: The displacement of aswash plate variable displacement type compressor isvaried to suit the state of the automobile, such as theload on the engine and cabin temperature, giving asmooth driving feeling. Variable displacement also
reduces fuel consumption.

The total number of engines sold during the past fiscal
year fell 11 percent to 341,206 units.
Car Air-Conditioning Compressor Business
The car air-conditioning compressor business hasdeveloped products serving the needs of customers in

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TOYODA AUTOMATIC LOOM WORKS, LTD.

3small 1,500 cc passenger cars rose to 40,744 units.
096 97 98 99 00
JapanNorth AmericaEuropeAsia and Oceania

each market globally and expanded sales in North America and Europe. Sales increased 12percent, compared to the previous fiscal year, to ¥120.3 billion. All car air-conditioning
compressors manufactured by Toyoda are sold to major automobile manufacturers globally
through DENSO Corporation.
Sales of car air-conditioning compressors produced for the domestic market increased 9percent, compared to the previous year, to 4.3 million units, due mainly to favorable minivehicle sales.
Car air-conditioning compressors also sold well overseas. Results in North America
reflect the acquisition of new orders and brisk automobile sales due to increased personalspending. As a result, car air-conditioning compressor sales increased 10 percent, compared

10 S13 Compressor: A swash plate fixed
displacement type compressor highly acclaimed not only
for its high reliability but also for its light weight.

to the previous year, to 3.7 million units. In the North American markets, fixed displacement
type compressors, which have excellent reliability at high running speeds, have been received
favorably by customers.
The number of car air-conditioning compressors produced for the European markets
increased 17 percent, compared to the previous year, to 2.7 million units. This result reflects
an expansion in European markets due to increased use of car air-conditioners and theacquisition of new orders. In Europe, variable displacement type compressors for luxury
cars are regarded highly.
As a result, total sales rose 11 percent, compared to the previous fiscal year, to 10.8
million units.

Materials Handling Equipment Segment
The Materials Handling Equipment Segment encompasses the forklift business and theGENEO-B (7FB): An electric-powered forklift
equipped with a dedicated AC drive system for forklifts
as standard equipment. With high basic performanceand operability, the GENEO-B shows the way forward forelectric-powered forklifts.

materials handling systems business, which includes automated storage and retrieval
systems and automatic guided vehicle systems. Forklift
business sales accounted for about 97 percent of theForklift Unit Sales

Materials Handling Equipment Segment in the past fiscal(Years ended March 31)

year. Total sales fell slightly to ¥149.1 billion, a drop of(Thousand Units)

1.5 percent from the previous year.

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In the forklift business, demand in the United Statesmarket declined slightly, but on the whole, demand in the60

United States and Europe remained fairly strong. In Japan,
however, despite signs of recovery since autumn 1999,
sluggish investment caused demand to fall for the second

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30

consecutive year.
Against this backdrop, the GENEO-B, an electric-

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powered counterbalanced forklift with a 1.0- to 3.5-toncapacity, was launched in the Japanese market in August096 97 98 99 00

1999 to strengthen Toyoda’s product range. As a result,the annual market share of Japanese forklift sales

JapanGENEO (7 Series): The GENEO is an enginepowered forklift of 1.0- to 5.0-ton capacity. In addition
to basic materials handling performance, this highlyacclaimed forklift series is powered by an environmentallyfriendly engine dedicated for forklifts and assures safety
by adopting the state-of-the-art computerized safetycontrol system, “System of Active Stability” (SAS).

North America

surpassed 40 percent for the first time. This enabled theEurope

Materials Handling Equipment Segment to reach its

Asia and Oceania

TOYODA AUTOMATIC LOOM WORKS, LTD. 13

Review of Operations

targeted sales volume in the domestic market, despite a drop in overall demand.
Launched in overseas markets during fiscal 2000, the 7 Series engine-poweredcounterbalanced forklift (GENEO in Japan) has sold well. Although sales volume fell slightly
compared to the previous year, it remained at a high level.
With the acquisition of BT Industries AB in June 2000, Toyoda expects to develop andexpand its forklift business in the future by creating synergy between regions, products andBT Industries AB: A Swedish warehouseequipment and forklift manufacturer, BT Industries AB
became Toyoda’s subsidiary in June 2000. Together withthe warehouse equipment of BT Industries, Toyoda now
realizes a comprehensive lineup of materials handlingequipment.

sales. In addition, an agreement with Toyota Motor Corporation (TMC) in late July, willallow Toyoda to further strengthen its forklift and materials handling systems businesses.
Presently, TMC focuses on sales and marketing, and Toyoda develops and manufactures
forklifts. The new agreement when finalized is expected to transfer all forklift and related
operations to Toyoda. The transfer of these operations is slated for April 2001. This willconsolidate Toyoda’s position as a leading forklift manufacturer.
The materials handling systems business is responsible for the manufacture of automatedstorage and retrieval systems and automatic guided vehicles. As a result of sluggish
equipment investment in the private sector, sales remained at a low level during the fiscalyear under review.

Textile Machinery Segment
The Textile Machinery Segment consists mainly of the spinning machinery and weaving
LW600 Series Water Jet Loom: A water jetloom that uses the force of water to insert the weftthrough the warp running lengthwise on the loom. The
machine was launched in February 2000. Not only is it
capable of weaving cloth of high quality, but it has
excellent durability and low running costs, making it anefficient, high-speed weaving machine.

machinery businesses. Sales in this segment increased 22 percent over the previous fiscal
year to ¥23.1 billion. This result reflects improvement, albeit spotty, in the businessconditions of Southeast Asia.
In the weaving machinery business, orders from Korea and Taiwan for the JAT610 air jetloom, the core product of this business, increased, reflecting signs of economic recovery inthese markets. As a result, the number of weaving machines sold increased 2,296 units to4,416 units and sales increased 72 percent, compared to the previous fiscal year, to ¥17.2
billion. In April 1999, the textile machinery business acquired the water jet loom businessfrom Nissan Texsys Co., Ltd. and a new type of water jet loom, the LW600 series, waslaunched in February 2000. Toyoda has taken measures to attract new customers as well as
to promote repeat sales.
In the spinning machinery business, carefully planned sales activities were conducted forprospective customers in leading Asian markets. However, a plunge in demand in Indonesia
and Thailand caused sales of the RX 240 ring spinning frame and the FL 100 roving frame todrop. As a result, sales of the spinning machinery business fell to ¥5.9 billion, down 34
percent from the previous fiscal year.
In the Textile Machinery Segment, Toyoda continues to promote rationalization

RX240 Ring Spinning Frame: By utilizing a
new mechanical design featuring Toyoda’s proprietaryspinning geometry, positive lifting, and an easy-to-usefunction panel, the RX240 provides superior quality,productivity and operability with simplified maintenance.

14TOYODA AUTOMATIC LOOM WORKS, LTD.

measures to enhance productivity, and is working to lower costs and strengthen its productline and profitability.