FY2022
2nd Quarter
Financial Results
November 1, 2021

I. Financial Summary
1. Points of financial results
2. Financial results for FY2022 2Q
3. Financial forecast for FY2022

1/34

Points of Financial Results for FY2022 2Q
1. YoY increase in net sales and profits
despite the shortage of parts supply and operation
adjustments due to automakers' production cut.
2. The full‐year forecast remains unchanged,
taking into account the situations such as sales units,
exchange rates and raw material prices in each business.

3. Year end dividends is planned at ¥90, annually at ¥170.

2/34

Performance <FY2022 2Q>(Billion yen)

FY2021
2Q

FY2022
2Q

ChangeNet sales

957.0

1,260.8

303.8

31.7%

Operating profit

30.2

94.3

64.1

212.5%

Profit before income taxes

65.2

137.8

72.6

111.3%

Profit attributable to owners of
the parent

48.1

103.3

55.2

114.9%

Earnings per share¥154.95¥332.99¥178.04‐

Dividends per share

¥70

¥80

¥10

‐

¥/US$

¥107

¥110

¥3

‐

¥/Euro

¥121

¥131

¥10

‐

‐ Both net sales and profits are increased YoY by sales expansion in both the Automobile andMaterial Handling Equipment businesses despite the shortage of parts supply and operation
adjustments due to automakers' production cut.

3/34

Segment Information <FY2022 2Q>

Net sales [Operating profit](Billion yen)

Unit sales(Thousand units)

ChangeFY2021
2Q

FY2022
2Q

VehicleEngine

41.2
57.8

42.1
112.4

0.9
54.6

2.1%
94.2%

Car Air‐Conditioning
Compressor

125.4

166.5

41.1

32.7%

Electronics partsand others

25.2

39.2

14.0

55.6%

Automobile

249.8[(17.5)]360.3[14.8]

110.5[32.3]

44.2%

Materials Handling
Equipment

662.9[47.0]

843.7[73.5]

180.8[26.5]

27.3%

Textile Machinery

17.8[(1.1)]

30.3
[2.3]

12.5
[3.4]

Others

26.3
[1.7]

26.4
[3.6]

Total

957.0
[30.2]

1,260.8[94.3]FY2021
2Q

FY2022
2Q

Change

147

156

9

DieselGasoline

141
191

196
184

55
(7)

Engine

332

380

48

Car Air‐Conditioning
Compressor

11,59013,840

2,250

69.6%

Materials Handling
Equipment

118

135

17

0.1
[1.9]

0.4%

Air‐jet loom

1.9

2.9

1.0

303.8
[64.1]

31.7%

Vehicle（RAV4)

Vehicle:Unit sales of RAV4 increased both in Japan and outside Japan.
Engine:Unit sales of GD diesel engines mainly increased.
Car Air‐Conditioning:Unit sales increased in such regions as North America and Europe.
Compressor
Materials Handling:Net sales of both lift trucks and logistics solutions increased.
Equipment

4/34

Changes in Operating Profit
Year‐on‐year comparison (FY2021 2Q and FY2022 2Q)
Operating profit ¥64.1 billion increase (¥30.2 to ¥94.3 billion)(Billion yen)

＋78.6

+4.8

+7.2

(15.1)(5.8)

Cost reduction
Positive impact
of exchange rate
fluctuations

Increase in
raw material
cost

Increase inlabor cost

(0.8)
Increase indepreciation

(4.8)

94.3

Increase in
expenses andothers30.2
Sales
efforts

FY2021
2Q

‐

+90.6

(26.5)FY2022
2Q

OP increase YoY mainly due to sales efforts, despite increases in raw materials
and labor costs.
5/34

Performance <FY2022 2Q>(Billion yen)

FY2021
2Q

FY2022
2Q

ChangeInvestments intangible assets

59.0

61.1

2.1

3.6%

Depreciation

45.7

46.6

0.9

2.1%

‐ Overall investments intangible assets increased mainly due to increase of thosein Car Air‐Conditioning Compressor and Material Handling Equipment businesses.

6/34

Performance <FY2021 2Q>(Billion yen)

As of March
31, 2021

As of September
30, 2021

ChangeTotal assets

6,503.9

6,917.2

413.3

6.4%

Total equity

3,322.5

3,659.3

336.8

10.1%

Ratio of share of equity
attributable to ownersof the parent

49.8%

51.6%

-

-

256

260

-

-

Consolidated
subsidiaries‐ Total assets increased due to an increase in market value of investment
securities and others.

7/34

Performance <FY2021 Forecast>

Overall, the full‐year forecast remains unchanged from the previous forecast, as the weaker yen and the strong performanceof the value chain in Material Handling Equipment business contributes to the increase in profit, despite the impact ofparts supply shortages, automakers' production cut, and higher raw material prices.
(Billion yen)

FY2021
Net sales

FY2022

ChangePrevious
Forecast

2,118.3

2,600.0

481.7

22.7%

Unchanged

Operating profit

118.1

150.0

31.9

26.9%

”

Profit before income
taxes

184.0

225.0

41.0

22.3%

”

Profit attributable toowners of the present

136.7

165.0

28.3

20.7%

”

Earnings per share¥440.28¥531.43¥91.15‐”

Cash dividends per
share

¥150

¥170

¥20

‐

”

Payout ratio

34.1%

32.0%

‐

‐

”

¥/US$

¥106

¥110

¥4

‐

¥106

¥/Euro

¥124

¥130

¥6

‐

¥127
8/34

Segment Information <FY2022 Forecast>
Net sales [Operating profit](Billion yen)

FY2021

FY2022

ChangePrevious
Forecast

88.3
139.9

93.0
263.0

4.7
123.1

5.2%
87.9%

95.0
270.0

301.6

337.0

35.4

11.7%

355.0

61.6

90.0

28.4

45.9%

100.0

Automobile

591.6
[4.7]

783.0

191.4

32.3%

820.0

Materials Handling
Equipment

1,431.4[109.9]1,710.0

278.6

19.5%

1,680.0

Textile Machinery

40.8[(1.1)]

57.0

16.2

39.5%

50.0

Others

54.3
[4.4]

50.0

(4.3)

(8.0%)

50.0

Total

2,118.3[118.1]2,600.0[150.0]481.7[31.9]

22.7%

2,600.0[150.0]

VehicleEngineCar Air‐Conditioning
Compressor
Electronics parts,
Foundry and others

9/34

Segment Information <FY2022 Forecast>
Unit sales(Thousand units)

FY2021
Vehicle （RAV4)FY2022Previous
Forecast

Change

323

330

7

337

362
403

439
401

77
(2)

431
431

765

840

75

862

Car Air‐Conditioning
Compressor

27,51028,8401,330

31,600Materials Handling
Equipment

250

296

46

309

Air‐jet loom

4.7

7.0

2.3

5.9

DieselGasoline

Engine10/34

Changes in Operating Profit
Year‐on‐year comparison (FY2021 full year and FY2022 full year forecast)
Operating profit: ¥31.9 billion increase (from ¥118.1 billion to ¥150.0 billion)(37.0)+13.0(Billion yen)

+14.0
+65.0
Cost
reduction

118.1

Positive impact
of exchange rate
fluctuations(8.0)

Increase in
raw material Increase inlabor cost
cost

(2.0)

(13.1)

Increase indepreciation Increase in
expensesand others

150.0

Sales
efforts

FY 2021

FY 2022+92.0(60.1)

11/34

Performance <FY2022 Forecast>(Billion yen)

FY2021

FY2022

ChangeInvestments in tangible
assets

113.3

140.0

26.7

23.5%

Depreciation

91.0

93.0

2.0

2.1%

12/34

II. Our Business Initiatives

13/34

Impact of supply chain disruption

Semiconductor shortage and lockdown in Southeast Asia
■Impact on our parts procurement and response
・Production has been continuing, but production adjustments
have been made for some products such as forklifts andcompressors due to parts and supply shortages
・Focus on ensuring the stable procurement of necessary parts bycontinuing to take measures such as accelerating delivery andadopting alternative products with design changes
・Considering medium‐ to long‐term frame negotiations withsemiconductor manufacturers and securing BCP inventories■Impact of reduced production by automakers
・Consider working day adjustments and recovery measures
within the fiscal year in the vehicle, engine, compressor,
car electronics, and battery businesses
・Parts supply risks continues
14/34

Materials Handling Equipment
1. Business Environment‐Gradual recovery of global economy along with progress of vaccination‐Further increase of e‐commerce
Increasing needs for‐Social distancing being taken root
manpower saving and automation‐Labor cost increase centered on
emerging markets
World GDP*1(US$ trillion)(US$ billion)

World e‐commerce market*2

7,000
100
90
80
70
60
50
40
30
20
10
0

6,000
5,000
4,000
3,000
2,000
1,000
0
17

18

19

20

21

22

*1： IMF, World Economic Outlook, April 2021
(Forecast for 21, 22, and 23)

23

(CY)

18

19

20

21

22

23

24

(FY)

*2: Produced by Toyota Industries based on “International Economic Research Project(Market Research on Electronic Commerce) Report on Construction of Integrated
Economic Growth Strategy Inside and Outside in the first year of Reiwa”,
Japan’s Ministry of Economy, Trade and Industry (2020)

15/34

Materials Handling Equipment
2. Sales and Forecast
Lift truck
Net sales breakdown

Unit sales of lift trucks(Thousand)・Recovery of demand
along with resumption of
economic activities mainly
in developed countries（Revised Forecast）（Initial Forecast*）

300
200

Value
chain

New
truck

100

・Increase by expansionof e‐commerce0

Approx. 80%

21

Ｆ

22

(FY)

* Adjusted for impact of suspension of shipmentin North America

Logistics solutions

Order intake of logistics solutions(¥ billion)（Initial Forecast）

Net sales breakdown
Approx. 20%

・Strong order intake withincreasing needs forautomation andmanpower saving（Revised Forecast）

400

300

200 0
21

22

(FY)

・Significant order increase
especially in retail ande‐commerce operators
16/34

Materials Handling Equipment
3. Major Activities for Automation■Contribution to manpower saving needs throughAI‐equipped autonomous driving forklifts
・Conducted a demonstration project * to improve the efficiency andenergy saving of the entire supply chain by realizing planned andefficient truck operation between shippers*Joint project with Daiwa House Industry, AEON GLOBAL SCM, Kao Corporation, and Hitachi Transport SystemＦ

AI‐equipped autonomous driving forklift

Aim for realizing practical use of AI‐equipped autonomous driving
forklifts to automate loading and unloading of trucks
17/34

Materials Handling Equipment
4. Major Activities for Popularize Hydrogen■Products equipped with
Fuel Cell (FC)FC forklift truck■Small FC Module
・To realize a hydrogen society,infrastructure development andFC module dissemination are necessary
・Newly developed a highly‐versatile small
FC module by packaging FC system
related parts
Ｆ⇒Aiming for utilization in small mobility
and stationary generators

The same cells as usedin the Toyota Mirai FCEV(Supplied by TMC)

FC tow tractor
FC unit(In‐house production)
FC module appearance

Contribute to the realization of a hydrogen society
18/34

Materials Handling Equipment
5. Major Activities for Logistics Solution Business (1/3)

 Diverse customer industry composition
・Well diverse sales composition such as e‐commerce,
baggage handling system, parcel and manufacturer
・Significant increase especially in retail/distribution/e‐commerce（FY2020）

Break down of order intake by industry （FY2021）¥347.0 billion
Food/
Pharmaceuticals
and others
Manufacturer
Parcel/Express service

Retail/Distribution/
e‐commerce

Baggage
Handling¥414.6 billion

Food/
Pharmaceuticals
and others
Manufacturer
Parcel/Express service

Retail/Distribution/
e‐commerce

Baggage
Handling

19/34

Materials Handling Equipment
5. Major Activities for Logistics Solution Business (2/3)■Collaboration between Vanderlande and TICO
・Received an order for a distribution center construction project
for a major domestic medical‐related products operator
・Introduced ADAPTO, a high‐speed storage and picking systemdeveloped by Vanderlande, for the first time in JapanＦ
ADAPTO①
100 shuttles

ADAPTO②
100 shuttles

20/34

Materials Handling Equipment
5. Major Activities for Logistics Solution Business (3/3)■Collaboration between Vanderlande and TMHE**Toyota Material Handling Europe AB, European headquarters for materials handling equipment business・Vanderlande and TMHE collaborated to receive orders
for a large distribution center of major supermarket chains
・Vanderlande supplies logistics systems and equipment while
TMHE supplies automated guided forklifts
Ｆ

Vanderlande's logistics systems and equipment

TMHE's automated guided forklifts

21/34

Materials Handling Equipment

Shipment suspension of some models of engine‐powered
lift trucks in the United States

 Some models of engine‐powered lift trucks
manufactured at the US plant Suspension of shipment from this January and suspensionof production from this June due to delays in obtaining U.S.
engine emissions certification

・Continued discussions with authorities
・Aim to resume shipping through a sincere responseto the authorities
・Disclose relevant information promptly if any mattersrequiring disclosure arise
22/34

Car Air‐Conditioning Compressor
1. Our Compressor Sales and Forecast
・Full‐year sales forecast revised downward due to automaker production cuts・Engine driven types remain on par with previous year, while electric driven
type increased（Thousand units）

Japan

GlobalNorth America

32,500 （Initial Forecast）
5,580

27,510
3,660

5,370

8,130

28,840 （Revised Forecast）
5,500
Electric driven type

Ｆ
21

22

（FY）

（Forecast）

23,85
0

21

8,920

Europe23,340Engine driven type21（FY）（Forecast）

6,520

21

7,070

22 （FY）（Forecast）

21

22

（FY）

（Forecast）

China and Others
7,280

21

7,480

22

（FY）

（Forecast）

23/34

Car Air‐Conditioning Compressor
2. Expansion of electric driven type・Automakers are accelerating the shift to electrificationin response to rising carbon‐neutral momentum andtightening environmental regulations in each country
・Sales of our electric driven type expanded
due to orders from automakers around the world（Thousand units）

Total
sales units

30,000Ｆ

10,000

Sales units ofelectric driven type
19

20

21

22

（FY）

（Forecast）

24/34

Car Air‐Conditioning Compressor
3. Response to the rapid increase in the production volume of electric type
Production base of electric driven type （Current）
Production base of electric driven type （Plan）
Production base of engine driven type （Current）<Germany> TDDK<USA> MACI
<USA> TACG

<China> YST<China> TACKＦ Kariya Plant<Japan><Indonesia> TACI

Japan

China
Europeand USA・Strengthen production structure at Kariya Plant and affiliated companies
・Started construction of new core parts production line at Higashiura Plant
・YST started production of electric driven type in June 2021, further capacity
expansion is planned・Considering production in Europe and USA as well in line with future order trends
25/34

Battery
1. Overview of the Bipolar Nickel-Metal Hydride Battery
・Achieves compactness and high output with innovatively structured cell・Large current by reducing the resistance inside the battery due toa wide energizing area and the simple structure

Thickness 0.3mm

Ｆ（Foil 50㎛）

Achieves about twice the output of previous battery
26/34

Battery
2. Establishment of Battery Production Structures
・Started production of batteries for the new Aqua at the Kyowa Plant
・Build a new production line at the Ishihama Plant in FY 2023
to support the expansion of on‐board vehicle models

Ｆ

Ishihama Plant(Under construction)
27/34

Our Products that support the New Aqua
Contributes to Comfortable Interior Space and Powerful Driving

・Electric Compressor

・DC‐AC Inverter

Ｆ・PCU Case・Reactor
・DC‐DC Converter

・Rear Inverter
・Bipolar Nickel-Metal Hydride Battery

28/34

EngineContributes to the running performance, fuel efficiency, andquietness of the new Land Cruiser
Features of the New V6 Diesel Engine
・A parallel sequential turbothat operates according to
the displacement achieves
both low fuel consumption
and output
Ｆ performance,
and also improves
acceleration response
Our newly developed
F33 Diesel Engine

LAND CRUISER 300（Launched in August, 2021）

Parallel sequential turbo

・By reducing the number of cylinders from 8 to 6,
the mass is reduced and it contributes toimproving the mobility of new vehicles
・The world's first use of diesel engine combustion
technology in automobiles, which was developedby our company, achieving both environmental
performance and noise reduction
29/34

III. Carbon Neutrality Initiatives

30/34

Environment[¥ billion]

1,600

Sales

1. Looking back on CO2 reduction activities
・Reduce CO2 emissions through environment‐friendly product development
・In FY2021, sales increased by 30% while emissions reduced by 20%
compared to FY2014

1,000

1,400

TICO stand‐alone

1,564

FY14→21 ＋32％

1,186

1,200

CO2 emissions when using the product/basic unit Ｆ
FY14→21 ▲37%
Basic unit

60,0002.5

Emission

2.0

40,00030,0001.0

48,00839,577 0.0

FY14→21 ▲18%20,000‐1.0

10,000

‐2.0

0

‐3.0

14

15

16

17

18

19

478

20

21 FY

Reduction ofenergy consumption
by energy saving
Powercoefficient
improvement

152

400

3.0

CO2 emission/Sales

50,000CO2 emission [kt‐CO2]

500
4.0

[kt‐CO2]

4.0

CO2 emissions during production

5.0

CO2 emission

70,000

330
51

300

275
192

100

0

136 Electricity

FY14→21 ▲17%

200

112

115

Gas

26

24

Others

21

FY

14

15

16

17

18

19

20

31/34

Environment
2. Creation of energy‐saving line
by synchronized development of products and processes■72% reduction in CO2 emissions with boost converter line for RAV4 PHV
・Product design and process design are carried out
at the same time, integrating the heating process,and introducing the partial heating method
Heated area

Required heating area②

Heating process

RAV4 PHV
Before①
Boost converter③④

Discovered commonalities
in the properties of the materials
required for heating

①

②

③

④

After

Integrated

Partial heatingStandardize process design methods that include not only productivity,
quality, and cost but also energy saving perspectives to reduce
CO2 emissions in the entire plant
32/34

Environment
3. Recent changes in social trends for climate change issues
USA

Japan

• Achieve carbon neutrality in 2050

• Carbon neutrality in 2050

• CO2 reduction target 50‐52% in 2030

• CO2 reduction target 26% → 46%
in 2030

Rapid changes since the start of the Biden
administration in November 2020
Conflict of
initiative

EuropeＦ⇒ Declared carbon neutrality,
drastically raised the target

China• Achieve carbon neutrality in 2050

• Carbon neutrality in 2060

• CO2 reduction target 55% in 2030

• Wait and see Europe, USA and Japan

Consideration of institutionalization ofborder carbon tax（Home industry protection）

33/34

Environment
4. Initiatives to reduce CO2 emissions
Products

Production
By the courseof natureCO2
emissionsＦ
Energy saving
・Innovative technology
・Daily improvement▲50%
Electricity

Renewable power
procurement
Private solar power
generation
Introducing
new technology

Heat(Fuel)

2014

2031

2051

Consider carbon
neutrality advancement

Use of hydrogenand ammonia,
CO2 capture etc.

・Accelerate the developmentof environment‐friendly
products in each business field・Thorough energy saving
activities, utilization ofrenewable energy, promotion of
new technology development
・Improvement of transportation
efficiency by modal shift andimprovement of loading efficiency
34/34

Cautionary Statement with Respect to
Forward‐Looking Statements
This presentation contains projections of business results as well as statements regarding business plans,
forecasts, strategies, and other forward‐looking statements that are not to be taken as historical fact.
Projections and forward‐looking statements are based on the current expectations and estimates ofToyota Industries and its Group companies. All such projections and forward‐looking statements are basedon management’s assumptions and beliefs derived from the information available to it at the time of
producing this report and are not guarantees of future performance. You should also be aware thatcertain risks and uncertainties could cause the actual results of Toyota Industries and its Group companies
to differ materially from any projections or forward‐looking statements appearing in this report. Theserisks and uncertainties include, but are not limited to, the following: 1) economic trends, 2) various
competitive pressures, 3) changes in relevant laws and regulations, and 4) fluctuations in exchange rates.