Annual Financial Report2024

For the Year Ended March 31, 2024

Financial Summary

P1Management's Discussion and Analysis ofFinancial Condition and Results of Operations

P2

Consolidated Statement of Financial Position

P11

Consolidated Statement of Profit or Loss

P13

Consolidated Statement of Comprehensive Income

P14

Consolidated Statement of Changes in Equity

P15

Consolidated Statement of Cash Flows

P17

Notes to Consolidated Financial Statements

P18

Independent Auditor's ReportEnd

TOYOTA INDUSTRIES CORPORATION

Financial Summary
Toyota Industries Corporation and its consolidated subsidiaries< IFRS >FY2020

FY2021

FY2022

FY2023

FY2024

2,171,355

2,118,302

2,705,183

3,379,891

3,833,205

Operating profit (Millions of yen)

128,233

118,159

159,066

169,904

200,404

Profit (Millions of yen)

150,187

141,435

185,350

198,716

236,854

Profit: attributable to owners of the parent(Millions of yen)

145,881

136,700

180,306

192,861

228,778

Comprehensive income (Millions of yen)

10,474854,098

751,823(26,348)

2,285,895

Share of equity attributable to ownersof the parent (Millions of yen)

2,438,807

3,236,038

3,928,513

3,837,416

6,045,759

Total assets (Millions of yen)

5,279,653

6,503,986

7,627,120

7,821,185

11,078,462

Equity per share: attributable to ownersof the parent (Yen)7,854.87

10,422.64

12,653.04

12,359.66

19,472.48

Earnings per share－basic (Yen)469.85440.28580.73621.17736.86

Earnings per share－diluted (Yen)469.85440.28580.73621.17736.86

46.19

49.75

51.51

49.06

54.57

5.93

4.82

5.03

4.97

4.63

11.02

22.39

14.58

11.83

21.24

313,199382,386

321,085

194,964443,590(182,598)(404,164)(229,805)(427,642)

47,903(7,094)(105,477)(92,114)

183,690(209,491)

358,144

238,248

247,085

202,731496,849

66,478[12,788]

66,947[11,396]

71,784[12,923]

74,887[14,358]

77,824[15,146]

Net sales (Millions of yen)

Ratio of equity attributable to ownersof the parent to total assets (%)
Return on equity attributable to ownersof the parent (%)
Price-to-earnings ratio (Times)
Net cash provided by (used in) operating
activities (Millions of yen)
Net cash provided by (used in) investing
activities (Millions of yen)
Net cash provided by (used in) financing
activities (Millions of yen)
Cash and cash equivalents at end of period(Millions of yen)
Number of employees[Average number of part-time employees,
not included in number of employees above](Notes) 1. Toyota Industries Corporation and its subsidiaries have adopted International Financial Reporting Standards("IFRS") for the consolidated financial statements of the annual report.
2. Diluted earnings per share is the same amount with basic earnings per share because there are no dilutive
shares.
3. Number of employees is the number of workers (excluding people dispatched from the Group to outside theGroup, but including people dispatched from outside the Group to the Group).

― 1 ―Management's Discussion and Analysis of Financial Condition and Results of Operations
The following Management's Discussion and Analysis of Financial Condition and Results of Operations is based on
information known to management as of June 2024.
This section contains projections and forward-looking statements that involve risks, uncertainties and assumptions. You
should be aware that certain risks and uncertainties could cause the actual results of Toyota Industries Corporation and its
consolidated subsidiaries to differ materially from any projections or forward-looking statements. These risks anduncertainties include, but are not limited to, those listed under "Risk Information" and elsewhere in this annual report.
The fiscal year ended March 31, 2024 is referred to as FY2024 and other fiscal years are referred to in a corresponding
manner. All references to the "Company" herein are to Toyota Industries Corporation on a stand-alone basis and references
to "Toyota Industries" herein are to the Company and its 277 consolidated subsidiaries.
1. Result of Operations(1) Operating performance
In FY2024 (ended March 31, 2024), although the inflation rate slowed as a result of monetary tightening policies mainlyin Europe and the United States, the outlook for the global economy remained uncertain due to concerns about recession
caused by higher interest rates and geopolitical risks such as conflicts in various regions. Meanwhile, the recovery of theJapanese economy was moderate despite positive economic trends such as wage increases and companies' stronger
willingness to commit to investment. In this operating environment, Toyota Industries undertook efforts to ensure
customer trust through a priority to quality as well as to expand sales by responding flexibly to market trends.
As a result, total consolidated net sales amounted to 3,833.2 billion yen, an increase of 453.4 billion yen, or 13%, fromthe previous fiscal year.
(2) Operating performance highlights by business segment
Business results by business segment are as follows.
Net sales for each segment do not include inter-segment transactions.
(Automobile)
The Automobile market expanded on a global basis, supported by robust sales mainly in China and Europe. Amid suchoperating conditions, net sales of the Automobile Segment totaled 1,096.4 billion yen, an increase of 138.6 billion yen,or 14% from the previous fiscal year. Operating profit amounted to 18.2 billion yen, a decrease of 16.4 billion yen, or
47%.
Within this segment, net sales of the Vehicle Business amounted to 100.8 billion yen, an increase of 17.7 billion yen, or21%, due to an increase in sales of Toyota RAV4 for abroad offset by a decrease for Japan.
Net sales of the Engine Business totaled 330.8 billion yen, an increase of 8.4 billion yen, or 3%, resulting from an increasein sales of gasoline engines, despite a decrease in sales of diesel engines.
Net sales of the Car Air-Conditioning Compressor Business totaled 466.1 billion yen, an increase of 36.4 billion yen, or8%. Sales increased mainly in North America and Europe while those in China decreased.
Net sales of Electronics Parts and Others Business totaled 198.5 billion yen, an increase of 76.0 billion yen, or 62%,
attributable primarily to an increase in sales of battery and DC-DC converters.

― 2 ―(Materials Handling Equipment)
The Materials Handling Equipment market were sluggish in North America and other regions, and shrank worldwide.
Amid this operating climate, net sales of the Materials Handling Equipment Segment totaled 2,587.2 billion yen, an
increase of 303.4 billion yen, or 13%. Sales of lift trucks, a mainstay product of this segment, increased primarily in North
America and Europe while those decreased in Japan. Operating profit amounted to 165.6 billion yen, an increase of 43.8
billion yen, or 36%.
(Textile Machinery)
The Textile Machinery market remained steady in Asia, including the mainstay India. Net sales of the Textile Machinery
Segment totaled 93.3 billion yen, an increase of 9.0 billion yen, or 11%, due mainly to an increase in sales of weaving
machinery and spinning machinery. Operating profit amounted to 8.0 billion yen, an increase of 0.2 billion yen, or 3%.
(3) Operating profit
Operating profit for FY2024 was 200.4 billion yen, an increase of 30.5 billion yen, or 18%, from the previous fiscal year.
This was owing to an increase in sales, the impact of exchange rate fluctuations, a decrease in logistics costs and further
advances in cost reduction efforts throughout the Toyota Industries Group, despite an increase in labor costs, domestic
engine certification related costs, and expenses and others including research and development expenses.
(4) Profit before income taxes
Profit before income taxes amounted to 309.1 billion yen, an increase of 46.2 billion yen, or 18%, from the previous fiscal
year.
(5) Profit attributable to owners of the parent
Profit attributable to owners of the parent totaled 228.7 billion yen, an increase of 35.9 billion yen, or 19%, from theprevious fiscal year.
Earnings per share－basic was 736.86 yen compared with 621.17 yen in the previous fiscal year.
2. Consolidated Financial Condition
Assets amounted to 11,078.4 billion yen, an increase of 3,257.3 billion yen from the end of the previous fiscal year, due
mainly to an increase in fair value of investment securities. Liabilities amounted to 4,925.1 billion yen, an increase of
1,039.4 billion yen from the end of the previous fiscal year, mainly owing to an increase in deferred tax liabilities. Equity
amounted to 6,153.3 billion yen, an increase of 2,217.9 billion yen from the end of the previous fiscal year.

― 3 ―3. Liquidity and Capital Resources(1) Capital needs and returning profits to shareholders
Toyota Industries' primary capital needs are twofold, specifically, long-term capital needs for research and development,
capital investment, M&A and others as well as working capital needs for purchasing raw materials and parts for
manufacturing the Toyota Industries' products and for manufacturing costs and selling, general and administrative
expenses.
In addition to prioritizing fund allocation in research and development and capital investment, it is Toyota Industries' policy
to invest funds in M&A and others when deemed necessary for business expansion and sustainable growth.
As for returning profits to shareholders, it is determined to pay dividends at the consolidated dividend payout ratio ofaround 30%. In regard to dividend policy, refer to "7. Dividend Policy".
(2) Financial policy
Toyota Industries' financial policy is to ensure sufficient financing for its business activities and to maintain sufficientliquidity and strong consolidated financial position. Toyota Industries continues to maintain its strong financial condition.
Through the use of such current assets as cash and cash equivalents and short-term investments, as well as cash flows
from operating activities, issuance of corporate bonds and loans from financial institutions, Toyota Industries believes
that it will be able to provide sufficient funds for the working capital necessary to expand existing businesses and develop
new projects.
Toyota Industries receives credit ratings from S&P Global Ratings Japan Inc., Moody's Japan K.K. and Rating &Investment Information, Inc. and strives to maintain and improve its ratings to procure funds at favorable terms.
Regarding fund management, the Company undertakes integrated fund management of its subsidiaries in Japan, while
Toyota Industries North America, Inc. (TINA) and Toyota Industries Finance International AB (TIFI) centrally manage thefunds of subsidiaries in North America and Europe, respectively. Through close cooperation among the Company, TINA
and TIFI, we strive to improve efficiency of funds operations.
4. Cash FlowsNet cash provided by operating activities was 443.5 billion yen in FY2024, due to posting profit before income taxes of309.1 billion yen. Net cash provided by operating activities increased by 248.6 billion yen compared to that of 194.9
billion yen in the previous fiscal year.
Net cash provided by investing activities was 47.9 billion yen in FY2024 compared with a net loss of 427.6 billion yen in
the previous fiscal year, attributable primarily to proceeds from withdrawals of bank deposits of 995.0 billion yen andproceeds from sales of investment securities of 241.5 billion yen, which offset payments for bank deposits of 807.2 billion
yen and payments for purchases of property, plant and equipment of 348.9 billion yen.
Net cash used in financing activities was 209.4 billion yen in FY2024 compared with a net gain of 183.6 billion yen in theprevious fiscal year, due mainly to repayments of long-term loans payable of 167.0 billion yen and repayments ofcorporate bonds of 149.1 billion yen, which outweighed proceeds from long-term loans payable of 165.5 billion yen andproceeds from issuance of corporate bonds of 142.4 billion yen.
After adding translation adjustments and cash and cash equivalents at beginning of period, cash and cash equivalents
as of March 31, 2024 stood at 496.8 billion yen, an increase of 294.1 billion yen, or 145%, from the end of the previous
fiscal year.

― 4 ―5. Investment in Property, Plant and Equipment
During FY2024, Toyota Industries made a total investment of 419,737 million yen in property, plant and equipment(including materials handling equipment for operating lease) in order to launch new products, streamline and upgrade
production equipment.
The breakdown in the operating segments is as follows.
In the Automobile Segment, investments in property, plant, and equipment was 116,191 million yen. This is primarily
attributable to the Company for 76,843 million yen, TD Deutsche Klimakompressor GmbH for 9,951 million yen andMichigan Automotive Compressor Inc. for 6,220 million yen.
In the Materials Handling Equipment Segment, investments in property, plant, and equipment was 297,823 million yen.
This is primarily attributable to the Company for 6,040 million yen, Toyota Material Handling Europe AB Group for 92,840
million yen, Raymond Group for 72,312 million yen, Toyota Industries Commercial Finance, Inc. for 59,794 million yen,
Toyota Material Handling Australia Pty Limited for 16,381 million yen and Vanderlande Group for 5,593 million yen.
In the Textile Machinery Segment, investment in property, plant, and equipment was 2,662 million yen.
In the Others Segment, investment in property, plant, and equipment was 3,060 million yen.
The fund is allocated from the Company's own resources, loans and corporate bonds.

6. Strategies and Outlook
Looking ahead to the future, the outlook remains uncertain due to concerns about economic recession caused bymonetary policies, mainly in Europe and the United States, as well as geopolitical risks such as conflicts in various
regions. At the same time, demands to realize a sustainable society have progressively diversified, and there have beenremarkable changes in the field of technology, such as the advancement of digitalization. Amid this environment, theprogress in the development of electrification and autonomous driving, new entrants utilizing IT and digital technologies,
and changes in industry structure have triggered increasingly fierce competition among companies in the automobile
and materials handling equipment fields, our core businesses. Under such circumstances, we will strive to achievesustainable growth and increase corporate value in the future by leveraging our comprehensive capabilities linked tomobility-related manufacturing and taking on the challenges of next-generation R&D, etc., with the logistics solutions
business as a cornerstone. On the other hand, on January 29, 2024, Toyota Industries announced legal violations indomestic engine certification, and on February 22, 2024, received a correction order from Ministry of Land, Infrastructure,
Transport and Tourism. In response, on March 22, 2024, we reported to the Ministry of Land, Infrastructure, Transport
and Tourism on measures to prevent recurrences of the engine certification issue. For the recurrence prevention, Toyota
Industries will return to the basics of providing customers with "safe and secure quality products" and continuing tocontribute to society, and implement the three reforms of "Culture," "Mechanism," and "Organization / Structure" to ensurethat we do the right thing correctly into preventive measures, and the entire Toyota Industries will continue to work
together to achieve the revitalization of Toyota Industries, and we are committed to the following two points.
i) Thoroughly adhere to the basics again
We will ensure compliance with laws and regulations, which is the foundation of management. In addition, we will adhere
to the priorities of "safety first, quality second, and production third" in manufacturing.
ii) Transformation of management platform
We will reconfirm the roles and responsibilities of each department, take action to address deficiencies and weak points,
and review the mechanism and organization/structure by correctly understanding the situation in the field and voices
based on facts. In addition, we will prioritize, revise, and abolish operations, work to resolve issues, address internal andexternal risks in cooperation with the head office, divisions, and departments, and actively utilize digital technology to
improve the efficiency and sophistication of our operations.
Through these initiatives, we will build a stronger management foundation to ensure the next stage of growth.

― 5 ―7. Dividend Policy
Toyota Industries intends to meet the expectations of shareholders for continuous dividends while giving full consideration
to business performance, funding requirements, the dividend payout ratio and other factors.
Toyota Industries' Board of Directors meeting, held on April 26, 2024, approved a year-end cash dividend of 140.0 yen
per share. Including the interim cash dividend of 100.0 yen per share, cash dividends for the year totaled 240.0 yen per
share.
Toyota Industries will effectively use retained earnings for capital investment, research and development, and otheractivities to achieve future business growth, while flexibly implementing shareholder return programs, including
repurchase of our common stock, while taking into consideration trends in stock prices and capital structure.
The Company's Articles of Incorporation stipulate that it may pay interim cash dividends as prescribed in Article 454-5 of
the Companies Act and it is the Company's basic policy to pay dividends from retained earnings twice a year (interim andyear-end).
The Company's Articles of Incorporation also stipulate that what is prescribed in Article 459-1 of the Companies Act canbe added to the Articles of Incorporation.

― 6 ―8. Risk Information
The following represent risks that could have a material impact on Toyota Industries' financial condition, business results
and share prices. Toyota Industries judged the following as future risks as of March 31, 2024.
(1) Compliance Risks
Toyota Industries regards compliance as major premise of business activities and one of the most important managerialtask. In order to carry out business activities in accordance with domestic and international legal compliance as well associal norms, Toyota Industries try to avoid or minimize compliance risks by promoting system maintenance andeducation and enlightenment for executives and employees, but in case of a serious violation of laws and regulations
and other related matters, they could have an adverse impact on Toyota Industries' financial condition and businessresults, such as loss of social credibility, damage to brand image and so on.
(2) Principal customers
Toyota Industries' automobile and engine products are sold primarily to Toyota Motor Corporation ("TMC"). In FY2024,
net sales to TMC accounted for 12.8% of consolidated net sales. Therefore, TMC's vehicle sales could have an impact
on Toyota Industries' business results. As of March 31, 2024, TMC holds 24.7% of the Company's voting rights.
(3) Product development capabilities
Based on the concept of "developing appealing new products", Toyota Industries proactively develops new products by
utilizing its leading-edge technologies, as it strives to anticipate increasingly sophisticated and diversifying needs of themarket and ensure the satisfaction of its customers.
R&D activities are focused mainly on developing and upgrading products in current business fields and peripheral sectors.
Toyota Industries expects that revenues derived from these fields will continue to account for a significant portion of total
revenues and anticipates that future growth will be contingent on the development and sales of new products in thesefields. Toyota Industries believes that it can continue to develop appealing new products. However, Toyota Industries
may not be able to forecast market needs and develop and introduce appealing new products in a timely manner. This
could result in lower future growth and have an adverse impact on Toyota Industries' financial condition and businessresults.
Such a situation could result from risks that include that there is no assurance that Toyota Industries will be able toallocate sufficient future funds necessary for the development of appealing new products; no assurance that productsales will be successful, as forecasts of products supported by the market may not always be accurate; and no assurance
that newly developed products and technologies will always be protected as intellectual property.
(4) Intellectual property rights
In undertaking its business activities, Toyota Industries has acquired numerous intellectual property rights, including
those acquired outside Japan, such as patents related to its products, product designs and manufacturing methods.
However, not all patents submitted will necessarily be registered as rights, and these patents could thus be rejected bypatent authorities or invalidated by third parties. Also, a third party could circumvent a patent of Toyota Industries andintroduce a competing product into the market. Moreover, Toyota Industries' products utilize a wide range of technologies.
Therefore, Toyota Industries could become a party subject to litigation involving the intellectual property rights of a third
party.

― 7 ―(5) Product defects
Guided by the basic philosophy of "offering products and services that are clean, safe and of high quality", Toyota
Industries makes its utmost efforts to enhance quality.
However, Toyota Industries cannot guarantee all its products will be defect-free and that product recalls will not be madein the future. Product defects that could lead to large-scale recalls and product liability indemnities could result in large
cost burdens and have a significant negative impact on the evaluation of Toyota Industries. It could also have an adverse
effect on Toyota Industries' financial condition and business results due to a decrease in sales and profit, and decline inshare prices of Toyota Industries.
(6) Price competition
Toyota Industries faces extremely harsh competition in each of the industries in which it conducts business, including its
Automobile and Materials Handling Equipment businesses, which are the core of Toyota Industries' earnings foundation.
Toyota Industries believes it offers high value-added products that are unrivalled in terms of technology, quality and cost.
Amid an environment characterized by intensifying price competition, however, Toyota Industries may be unable tomaintain or increase market share against low-cost competitors or to maintain profitability. This could have an adverse
impact on Toyota Industries' financial condition and business results.
(7) Reliance on suppliers of raw materials and components
Toyota Industries' products rely on various raw materials and components from suppliers outside Toyota Industries.
Toyota Industries has concluded basic business contracts with these external suppliers and assumes it can carry out
stable transactions for raw materials and components. However, Toyota Industries has no assurances against future
shortages of raw materials and components, which arise from a global shortage due to tight supply or an unforeseen
accident involving a supplier. Such shortages could have a negative effect on Toyota Industries' production and cause
an increase in costs, which could have an adverse impact on Toyota Industries' financial condition and business results.
(8) Environmental regulations and Climate change
In view of its social responsibilities as a company, Toyota Industries strives to reduce any burden on the environment
resulting from its production processes, as well as strives to strictly adhere to applicable environmental laws andregulations.
However, various environmental regulations could also be revised and strengthened in the future. Accordingly, any
expenses necessary for continuous strict adherence to these environmental regulations could result in increased
business costs and have an adverse impact on Toyota Industries' financial condition and business results.
Toyota Industries anticipates risks associated with the transition to a decarbonized society, including risks caused by theabove revisions to environmental regulations and the tightening of these regulations. Physical risks are also expected,
including more severe and frequent extreme weather events such as floods. The suspension of plant operations and thedisruption of supply chains could have an adverse impact on Toyota Industries' financial condition and business results.
(9) Alliances with other companies
Aiming to expand its businesses, Toyota Industries engages in joint activities with other companies through alliances andjoint ventures. However, a wildly fluctuating market trend or a policy disagreement between Toyota Industries and its
partners, owing to business, financial or other reasons, could prevent Toyota Industries from deriving the intended
benefits of its alliances.

― 8 ―(10) Exchange rate fluctuations
Toyota Industries' businesses encompass the production and sales of products and the provision of services worldwide.
Generally, the strengthening of the yen against other currencies (especially against the U.S. dollar and the euro, which
account for a significant portion of Toyota Industries' sales) has an adverse impact on Toyota Industries' business, whilea weakening of the yen has a favorable impact. As such, in the businesses in which the Toyota Industries manufactures
products in Japan and exports them, the strengthening of the yen could reduce Toyota Industries' relative pricecompetitiveness on a global basis and have an adverse impact on Toyota Industries' financial condition and businessresults. To reduce such possibilities to a minimum, Toyota Industries uses, in principle, derivative transactions such as
forward exchange contracts to hedge risks of exchange rate fluctuations.
(11) Share price fluctuations
Toyota Industries holds marketable securities, and therefore bears the risk of price fluctuations of these shares. Basedon fair market value of these shares at the end of the fiscal year under review, Toyota Industries had unrealized gains.
However, unrealized gains on marketable securities could worsen depending on future share price movements.
Additionally, a fall in share prices could reduce the value of pension assets, leading to an increase in the pension shortfall.
(12) Effects of disasters, power outages and other incidents
Toyota Industries carries out regular checks and inspections of its production facilities to minimize the effect of production
breakdown. However, there is no assurance Toyota Industries can completely prevent or lessen the impact of man-madeor natural disasters and power outages occurring at Toyota Industries' and its suppliers' production facilities. Specifically,
the majority of Toyota Industries' domestic production facilities and those of its business partners are situated in the
Chubu region. Therefore, major disasters in this region could delay or stop production or shipment activities. Suchprolonged delays and stoppages could have an adverse impact on Toyota Industries' financial condition and businessresults. To reduce such possibilities to a minimum, Toyota Industries works with business suppliers for optimizing the
supply chain such as obtaining alternative means of supplies of raw materials and parts by regionally dispersing channels.
(13) Latent risks associated with international activities
Toyota Industries manufactures and sells products and provides services in various countries. Such unforeseen factors
as social chaos, including political disruptions, terrorism, wars and disease, as well as changes in economic conditions,
could have an adverse impact on Toyota Industries' financial condition and business results.
(14) Security Risks
Toyota Industries utilizes a variety of internal networks and information systems and implements various security
measures for them. Toyota Industries also provides internal information security education and training to safeguard its
information assets and establish proper operational practices. However, the threat of cyberattack is increasing.
Cyberattacks that are unanticipated could delay or stop production and delivery and may cause the leakage ofconfidential information. These risks could result in a decline in Toyota Industries' competitiveness and reputation, which
in turn could have an adverse impact on Toyota Industries' financial condition and business results.
9. Material Contract Agreements
There are no material contract agreements that need to be disclosed as of the end of fiscal year ended March 31, 2024.

― 9 ―10. Toyota Industries' Relationship to Toyota Motor Corporation
Due to historical reasons, Toyota Industries maintains close relationships with TMC and other Toyota Group companies
in terms of capital and business dealings.
(1) Historical backgroundIn 1933, Kiichiro Toyoda, the eldest son of founder Sakichi Toyoda and then Managing Director of Toyoda Automatic
Loom Works, Ltd. (the present Toyota Industries), established the Automobile Department within the Company based on
his resolve to manufacture Japanese-made automobiles. In 1937, the Automobile Department was spun off and became
an independent company, Toyota Motor Co., Ltd. (the present TMC).
(2) Capital relationshipIn light of this historical background, Toyota Industries and TMC have maintained a close capital relationship. As of March
31, 2024, Toyota Industries holds 8.85% (1,192,331 thousand shares) of TMC's total shares in issue. Likewise, as of thesame date, TMC holds 24.7% of Toyota Industries' total voting rights. Toyota Industries is a TMC affiliate accounted forby the equity method.
(3) Business relationshipToyota Industries assembles certain automobiles and produces automobile engines under consignment from TMC.
Additionally, Toyota Industries sells a portion of its other components and products directly or indirectly to other Toyota
Group companies. In FY2024, our net sales to TMC on a stand-alone basis accounted for 12.8% of our consolidated net
sales.
(4) Contributions to the Toyota GroupAs a member of the Toyota Group, Toyota Industries is aligned with the direction outlined in the Toyota Group Vision.
Toyota Industries aims to contribute to strengthening the competitiveness of TMC and other Toyota Group companies inareas such as quality, cost, delivery and technologies. Toyota Industries is confident that raising the Toyota Group's
competitiveness will lead to increases in sales to and profits from the Toyota Group, thereby contributing to raising Toyota
Industries' corporate value.

― 10 ―

[Consolidated Financial Statements and Other]I. [Consolidated Financial Statements][Consolidated Statement of Financial Position](Millions of yen)
Notes

FY2023(As of March 31, 2023)

FY2024(As of March 31, 2024)

202,731496,849

420,173

243,358

AssetsCurrent assets
Cash and cash equivalents

5Time deposits with deposit terms of over three months
Trade receivables and other receivables

6

1,398,757

1,638,998

Other financial assets

7

5,399

5,564

Inventories

8524,385

619,082

Income tax receivables

26,262

14,487

Other current assets

99,313111,189

2,677,024

3,129,531

Total current assets
Non-current assets
Property, plant and equipment

9, 30

1,237,540

1,448,343

Goodwill and intangible assets

10, 30468,368

537,974

Trade receivables and other receivables

6

1,459

813

Investments accounted for by the equity method

1123,98730,016

Other financial assets

7

3,338,505

5,828,188

Net defined benefit assets

17

27,88744,193

Deferred tax assets

25

37,992

51,597

8,421

7,803

5,144,161

7,948,931

7,821,185

11,078,462

Other non-current assets
Total non-current assets
Total assets
The accompanying notes are an integral part of these financial statements.

― 11 ―

(Millions of yen)
Notes

FY2023(As of March 31, 2023)

FY2024(As of March 31, 2024)

Liabilities and Equity
Liabilities
Current liabilities
Trade payables and other payables

12

807,474

876,925

Corporate bonds and loans

13519,749

424,486

Other financial liabilities

14

83,74993,95029,696

110,079

41,82785,89034,61547,864

1,517,112

1,639,197

Accrued income taxes
Provisions

16

Other current liabilities
Total current liabilities
Non-current liabilities
Corporate bonds and loans

13

1,179,390

1,281,779

Other financial liabilities

14

104,404

142,323

Net defined benefit liabilities

17

81,422

68,767

Provisions

16

11,025

15,059Deferred tax liabilities

25

952,960

1,730,231

39,46747,7432,368,671

3,285,906

3,885,784

4,925,103

Other non-current liabilities
Total non-current liabilities
Total liabilities
EquityShare of equity attributable to owners of the parent
Capital stock18

80,46280,462

Capital surplus

18

101,245

99,581Retained earnings

18

1,652,648

1,990,203

Treasury stock18(59,345)(59,369)

Other components of equity

18

2,062,404

3,934,880

3,837,416

6,045,759

97,985

107,599

Total equity

3,935,401

6,153,359

Total liabilities and equity

7,821,185

11,078,462

Total share of equity attributable to owners of
the parent
Non-controlling interests― 12 ―

[Consolidated Statement of Profit or Loss](Millions of yen)
Notes

FY2023(April 1, 2022
- March 31, 2023)

FY2024(April 1, 2023
- March 31, 2024)

Net sales

4, 20

3,379,891

3,833,205

Cost of sales

21, 22(2,623,707)(2,932,058)

756,183

901,147

21, 22(576,761)(656,749)

Other income

23

28,23024,336

Other expenses

23(37,748)(68,330)

169,904

200,404

Gross profit
Selling, general and administrative expenses

Operating profit
Financial income

24

103,728

126,899

Financial expenses

24(13,976)(21,391)

Share of profit (loss) of investments accounted forby the equity method

11

3,311

3,276

262,967

309,190(64,250)(72,335)

198,716

236,854

192,861

228,778

5,855

8,076

Earnings per share－basic (yen)621.17736.86

Earnings per share－diluted (yen)621.17736.86

Profit before income taxes
Income taxes

25

ProfitProfit attributable to:
Owners of the parent
Non-controlling interests

Earnings per share

26

The accompanying notes are an integral part of these financial statements.

― 13 ―

[Consolidated Statement of Comprehensive Income](Millions of yen)
Notes

FY2023(April 1, 2022
- March 31, 2023)

ProfitFY2024(April 1, 2023
- March 31, 2024)

198,716

236,854

Other comprehensive income:Items not to be reclassified into profit or loss
Net changes in revaluation of FVTOCI
financial assets

27, 29(284,805)

1,882,239

Remeasurements of defined benefit plans

17, 27576

18,766

Other comprehensive income of affiliates
accounted for by the equity method

11, 271

116(284,227)

1,901,122

27

56,074

147,969

Cash flow hedges

27, 29

2,931

(418)

Other comprehensive income of affiliates
accounted for by the equity method

11, 27156

366

59,162

147,917

Total other comprehensive income(225,065)

2,049,040

Comprehensive income(26,348)

2,285,895(34,061)

2,272,126

7,713

13,768

Total items not to be reclassified into profit or loss
Items that can be reclassified into profit or loss
Translation adjustments of foreign operations

Total items that can be reclassified into profit or loss

Total comprehensive income attributable to:
Owners of the parent
Non-controlling interests
The accompanying notes are an integral part of these financial statements.

― 14 ―

[Consolidated Statement of Changes in Equity](Millions of yen)
Share of equity attributable to owners of the parent
Other components of equity
Notes

Net changes inrevaluation of
FVTOCIfinancial assets

CapitalsurplusRetainedearnings

80,462

102,388

1,514,657(59,339)

2,245,347－

Profit－－192,861－－－

Other comprehensive income

－

－

－

－

(284,915)

685

－

－

192,861－(284,915)

685

Balance as of April 1, 2022

Total comprehensive income

Capitalstock

TreasurystockRemeasurementsof defined benefit
plans

Repurchase of treasury stock

18

－

－

－

(5)

－

－

Disposal of treasury stock

18

－

0

－

0

－

－

Dividends

19

－

－

(55,886)

－

－

－

－

58

－

－

－

－

－

－

－

－

－

－

Reclassified into retained earnings

－

－

1,015

－

(330)

(685)

Other increases (decreases)－(1,201)

－

－

－

－

Total transactions with owners－(1,143)(54,870)

(5)

(330)

(685)

Balance as of March 31, 2023

80,462

101,245

1,652,648(59,345)

1,960,101－

Profit－－228,778－－－

Other comprehensive income

－

－

－

－

1,882,077

18,282－－

228,778－

1,882,077

18,282

Changes in ownership interest of
subsidiaries
Changes in non-controlling interests
as a result of change in scope of
consolidation

Total comprehensive income
Repurchase of treasury stock

18

－

－

－

(24)

－

－

Disposal of treasury stock

18

－

0

－

0

－

－

Dividends

19

－

－

(62,095)

－

－

－

－

(0)

－

－

－

－

－

－

－

－

－

－

Reclassified into retained earnings－－

170,872－(152,590)(18,282)

Other increases (decreases)－(1,663)

－

－

－

－

Total transactions with owners－(1,663)

108,776(24)(152,590)(18,282)

Balance as of March 31, 2024

80,462

99,581

1,990,203(59,369)3,689,589－

Changes in ownership interest of
subsidiaries
Changes in non-controlling interests
as a result of change in scope of
consolidation

The accompanying notes are an integral part of these financial statements.

― 15 ―

(Millions of yen)
Share of equity attributable to owners of the parent
Other components of equity
Notes

Balance as of April 1, 2022
ProfitOther comprehensive income
Total comprehensive income

Translation
adjustmentsof foreign
operations

Cash flow
hedges

Total

Total

Non-controllinginterests

Total equity

41,6573,338

2,290,343

3,928,513

93,4544,021,967－－－

192,861

5,855

198,716

54,3742,931(226,922)(226,922)

1,857(225,065)

54,3742,931(226,922)(34,061)

7,713(26,348)

Repurchase of treasury stock

18

－

－

－

(5)

－

(5)

Disposal of treasury stock

18

－

－

－

0

－

0

Dividends

19

－

－

－

(55,886)(2,674)(58,560)

－

－

－

58

(508)

(449)

－

－

－

－

－

－

Reclassified into retained earnings－－(1,015)－－－

Other increases (decreases)

－

－

－

(1,201)－(1,201)

Total transactions with owners－－(1,015)(57,035)(3,182)(60,217)

Balance as of March 31, 2023

96,0326,269

2,062,404

3,837,416

97,985

3,935,401－－－

228,778

8,076

236,854

143,406(418)

2,043,348

2,043,348

5,692

2,049,040

143,406(418)

2,043,348

2,272,126

13,7682,285,895

Changes in ownership interest of
subsidiaries
Changes in non-controlling interests
as a result of change in scope of
consolidation

ProfitOther comprehensive income
Total comprehensive income
Repurchase of treasury stock

18

－

－

－

(24)

－

(24)

Disposal of treasury stock

18

－

－

－

0

－

0

Dividends

19

－

－

－

(62,095)(3,167)(65,262)

－

－

－

(0)

(986)

(986)

－

－

－

－

－

－

Reclassified into retained earnings－－(170,872)－－－

Other increases (decreases)

－

－

－

(1,663)－(1,663)

Total transactions with owners－－(170,872)(63,783)(4,154)(67,937)

Balance as of March 31, 2024

239,439

5,851

3,934,880

6,045,759

107,599

6,153,359

Changes in ownership interest of
subsidiaries
Changes in non-controlling interests
as a result of change in scope of
consolidation― 16 ―

[Consolidated Statement of Cash Flows](Millions of yen)
Notes
Cash flows from operating activities:
Profit before income taxes
Depreciation and amortization
Impairment losses
Interest and dividends income
Interest expenses
Share of (profit) loss of investments accounted
for by the equity method(Increase) decrease in inventories(Increase) decrease in trade receivables andother receivables
Increase (decrease) in trade payables and other payables
OthersSubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) 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 bank deposits
Proceeds from withdrawals of bank deposits
Payments for transfer of businesses
OthersNet cash provided by (used in) investing activities
Cash flows from financing activities:
Net increase (decrease) in short-term loans
payable (within three months)
Proceeds from short-term loans payable(over three months)
Repayments of short-term loans payable(over three months)
Net increase (decrease) in commercial paper
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of corporate bonds
Repayments of corporate bonds
Repayments of lease liabilities
Payments for repurchase of treasury stock
Cash dividends paid
Cash dividends paid to non-controlling interests
OthersNet cash provided by (used in) 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

FY2023(April 1, 2022
- March 31, 2023)

FY2024(April 1, 2023
- March 31, 2024)

262,967
257,7622,634(95,424)
10,111

309,190284,939
5,977(121,757)
16,988(3,311)(3,276)(70,207)(28,391)(225,489)(82,985)

29,6197,241
175,904
95,920(9,919)(66,940)
194,964

7,692
30,083
418,459
122,212(18,107)(78,974)443,590(289,974)
19,660(1,624)541(348,926)
28,021(9,170)241,530(36,486)(7,924)(919,474)
831,815(2,104)(29,995)(427,642)(807,285)
995,054(6,290)(37,105)
47,90331

59,426(77,738)31

82,05464,482

31(158,332)(33,130)

31
31
31
31
31
31

112,121354,876(130,782)
103,314(165,036)(40,910)(5)(55,886)(2,674)25,524
183,690
4,632(44,353)
247,085
202,731(62,884)
165,533(167,058)
142,470(149,183)(44,852)(24)(62,095)(3,167)
18,156(209,491)
12,114294,118
202,731496,849

19

5

The accompanying notes are an integral part of these financial statements.

― 17 ―

Notes to Consolidated Financial Statements
1. Reporting Entity
Toyota Industries Corporation (hereinafter, "the Company") is a company domiciled in Japan. The accompanying
consolidated financial statements comprise Toyota Industries and the Company's interests in affiliates. The businesses of
the Toyota Industries include the manufacture and sales of automobiles, materials handling equipment, textile machineryand others. The content of each business is detailed in "4. Segment Information".
2. Basis of Presentation(1) Conformance of consolidated financial statements with IFRSAs the Company meets the requirements of "Specified Company Applying Designated International Financial ReportingStandards" pursuant to Article 1-2 of the Ordinance on Consolidated Financial Statements, the consolidated financial
statements of the Company have been prepared in accordance with International Financial Reporting Standards (IFRS)
as permitted by the provision of Article 93 of the Ordinance.
The consolidated financial statements have been approved by Koichi Ito, president of the Company, on August 1, 2024.
(2) Basis of measurement
As detailed in "3. Material Accounting Policies", Toyota Industries' consolidated financial statements have been preparedon a historical cost basis, except for specific financial instruments and others measured at fair value.
(3) Functional currency and presentation currency
The financial statements of each of Toyota Industries' entities are measured using the currency of the primary economic
environment in which the entity operates ("functional currency"). These consolidated financial statements are presented
in Japanese yen, which is the Company's functional currency, rounded down to the nearest million yen.
(4) Use of estimates and judgments
In the preparation of the IFRS-compliant consolidated financial statements, the Company is required to make a numberof judgments, estimates and assumptions that could have an impact on the application of accounting policies, reportingof revenues and expenses as well as assets and liabilities. Actual results, however, could differ from those estimates.
Estimates and assumptions are continually reviewed. The effect of a changes in accounting estimates is recognized in
the reporting period in which the change was made and in future reporting periods.
The information regarding judgments used in applying accounting policies that could have a material effect on the
Company's consolidated financial statements is included in "3. Material Accounting Policies".
The information regarding uncertainties arising from assumptions and estimates that could result in material adjustmentsin the subsequent consolidated financial statements is as follows.
10. Goodwill and Intangible Assets (impairment losses)
17. Employee Benefits (Actuarial assumptions)(5) Accounting standards and interpretations not yet adopted by the Company
Of the new accounting standards and the new interpretations that have been newly issued or amended by the date of
approval of the consolidated financial statements, the major ones that have not yet been adopted by Toyota Industries asof March 31, 2024 are as follows.
The Company is currently evaluating the impact of the adoption of the new standards on the Toyota Industries Group's
consolidated financial statements and is unable to provide an estimation at this time.

― 18 ―IFRS

IFRS 18

Title

Presentation and Disclosure in
Financial Statements

Mandatory
To beeffective dateadopted(Fiscal year
byToyota
beginning on
Industries
or after)

Description of new issue and amendments

January 1,
2027

New standards that will replace the current
IAS 1 requirements, the accounting
standards for the presentation of financial
statements

FY2028― 19 ―

3. Material Accounting Policies(1) Basis of Consolidation(i) Business combinations
Business combinations are accounted for using the acquisition method. Goodwill is measured as the difference between
the aggregate of the acquisition-date fair value of the consideration transferred, the amount of any non-controllinginterests in the acquiree and, in a business combination achieved in stages, the acquisition-date fair value of theacquirer's previously held equity interest in the acquiree, and the net of the acquisition-date amounts of the identifiable
assets acquired and the liabilities assumed. If the difference is negative, it is immediately recognized in profit or loss. If
the initial accounting for a business combination is incomplete by the end of the fiscal year in which the combination
occurs, provisional amounts of incomplete items are measured, which are adjusted during the measurement period
within one year from the date of acquisition. Acquisition-related costs incurred are recognized as expenses. For
intangible assets acquired through a business combination, see "(6) Intangible Assets (iii) Intangible assets acquired inbusiness combinations". For policy on impairment losses of non-financial assets including goodwill, see "(15)Impairment Losses (ii) Non-financial assets".
(ii) Subsidiaries
Subsidiaries are entities controlled by the Company. The financial statements of the subsidiaries are consolidated into
those of the Company from the date on which the Company acquires control until the date on which the Company loses
control. Subsidiaries' financial statements are adjusted if their accounting policies differ from those of the Company.
Intra-group balances, transactions and any unrealized gains or losses resulting from intra-group transactions are
eliminated on consolidation. Comprehensive income is attributed to the owners of the parent and to non-controllinginterests, even if this results in the non-controlling interests having a deficit balance. Non-controlling interests consist of
the amount of those interests recognized initially at the date on which the Company acquires control and the changes
in non-controlling interests since the said date.
The consolidated financial statements contain financial statements of subsidiaries whose closing dates differ from thatof the parent as a result of those dates being required by laws of the countries where those subsidiaries reside. For
those subsidiaries, financial statements are prepared as of and years ended for March 31, and are used in the
consolidated closing date.
(iii) Affiliates
Affiliates are entities in which Toyota Industries has a significant influence, but not control, over financial and operating
policies. Investments in affiliates are accounted for using the equity method from the date on which the Company has
a significant influence until the date on which the Company loses the significant influence.
If accounting policies of affiliates differ from those adopted by Toyota Industries, the Company makes necessary
modifications to align them with those of Toyota Industries.
Under the equity method, the investment is initially measured at cost and is adjusted thereafter for the post-acquisitionchange in the Toyota Industries' share of the affiliates' net assets. In doing so, the amount equivalent to Toyota
Industries' share of the affiliates' net assets is recognized in profit or loss of the Group. Also, the amount equivalent to
Toyota Industries' share of the affiliates' other comprehensive income is recognized in other comprehensive income of
Toyota Industries. The amount equivalent to Toyota Industries' share of the affiliates' loss is recognized as a loss until
the amount exceeds the investment (including long-term interests that, in substance, form part of the Toyota Industries'
net investment in that affiliate), and losses in excess of the investment are recognized only to the extent that Toyota
Industries has incurred legal or constructive liabilities or made payments on behalf of the affiliate. Unrealized gains orlosses from significant inter-company transactions are eliminated to the extent of Toyota Industries' share of the equity
interest in the affiliate.
Any excess of the cost of acquisition over identifiable assets, liabilities and contingent liabilities of the affiliate at thedate of acquisition is recognized as goodwill and included in the carrying value of the investment, and is not amortized.

― 20 ―

(2) Foreign Currencies(i) Foreign currency transactions
Foreign currency transactions are converted into the functional currency of each of Toyota Industries' entities using theexchange rate prevailing at the transaction date. Monetary assets and liabilities denominated in foreign currencies areconverted into the functional currency using the exchange rate at the end of the reporting period.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated
into the functional currency at the spot rate using the exchange rate at the fair value calculation date.
Any exchange difference arising from the retranslation and settlement is recognized in profit or loss of the period.
(ii) Foreign operations
Assets and liabilities of foreign operations including goodwill and fair value adjustments arising from acquisition aretranslated at the exchange rates at the end of the reporting period. Income and expenses of foreign operations aretranslated at the average exchange rates during the fiscal year, except in cases where exchange rates fluctuatesignificantly. If exchange rates fluctuate significantly, the exchange rate at the transaction date is used.
Foreign currency differences from the translation are recognized in other comprehensive income. When a foreign
operation is disposed of, or control or significant influence or joint control is lost, the cumulative amount of exchange
differences related to that foreign operation is reclassified to profit or loss as part of the gain or loss on the disposal.
(3) Cash and Cash Equivalents
Cash and cash equivalents are cash on hand, readily available deposits and short-term highly liquid and low risk
investments with maturities not exceeding three months at the time of purchase.
(4) Inventories
Inventories are stated at the lower of cost or net realizable value. Cost of inventories includes purchase costs,
processing costs and all other costs incurred in bringing them to their existing location and condition, and is calculated
primarily using the moving average method.
Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs ofcompletion and the estimated costs necessary to sell.
(5) Property, Plant and Equipment
Property, plant and equipment are measured using the cost model and are stated at cost less accumulated depreciation
and accumulated impairment losses.
Estimated useful lives and the method of depreciation are reviewed at the fiscal year-end. Changes in estimated useful
lives or depreciation methods are accounted for on a prospective basis as a change in accounting estimate.
Property, plant and equipment, excluding land and construction in progress, are depreciated on a straight-line basis
over their estimated useful lives. Right-of-use assets are depreciated on a systematic basis from the commencement
date to the earlier of the end of the economic life of the underlying asset or the end of the lease term. The estimateduseful lives for major classes of assets are as follows.
・ Buildings and structures: 5 to 60 years
・ Machinery and vehicles: 3 to 22 years
An item of property, plant and equipment is derecognized on disposal or when it is withdrawn from use and no future
economic benefits are expected from its disposal. Any gain or loss arising from derecognition of an item of property,
plant and equipment is included in profit or loss when it is derecognized.
For the policy on impairment of property, plant and equipment, see "(15) Impairment Losses (ii) Non-financial assets".

― 21 ―

(6) Intangible Assets
Intangible assets are measured using the cost model and stated at cost less accumulated depreciation and accumulated
impairment losses.
(i) Intangible assets acquired separately
Intangible assets acquired separately with finite useful lives are carried at cost less accumulated amortization andaccumulated impairment losses.
(ii) Internally generated intangible assets
Expenditure on research is recognized as an expense in the consolidated statement of profit or loss in the fiscal year inwhich it is incurred.
An intangible asset arising from development (or from the development phase of an internal project) is recognized if,
and only if, all of the following can be demonstrated:a) the technical feasibility of completing the intangible asset so that it will be available for use or saleb) its intention to complete the intangible asset and use or sell itc) its ability to use or sell the intangible assetd) how the intangible asset will generate probable future economic benefitse) the availability of adequate technical, financial and other resources to complete development and to use or sell theintangible assetf) its ability to measure reliably the expenditure attributable to the intangible asset during its development
The cost of an internally generated intangible asset is the sum of expenditure incurred from the date when the intangible
asset first meets the recognition criteria above to the completion of its development. If an internally generated asset is
not recognized, a development cost is recognized as an expense in the consolidated statement of profit or loss in thefiscal year in which it is incurred.
After initial recognition, an internally generated intangible assets are carried at cost less accumulated amortization andaccumulated impairment losses.
(iii) Intangible assets acquired in business combinations
The cost of intangible assets acquired in a business combination is measured at fair value at the acquisition date. Afterinitial recognition, intangible assets acquired in a business combination are carried at cost less accumulated
amortization and accumulated impairment losses.
Intangible assets acquired in business combinations with indefinite useful lives are carried at cost less accumulated
impairment losses, without being amortized but tested for impairment, in the same way as goodwill.
(iv) Amortization of intangible assets
Intangible assets with finite useful lives are amortized on a straight-line basis over their estimated useful lives. The
estimated useful lives of major classes of assets are as follows.
・ Software: 3 to 5 years
・ Development assets: 2 to 10 years
・ Customer-related assets: 12 to 20 years
・ Technology-related assets: 10 to 20 years
Estimated useful lives and amortization methods are reviewed at each reporting date, and any revisions are applied asrevisions to accounting estimates prospectively.

― 22 ―

(v) Derecognition of intangible assets
An item of intangible assets is derecognized on disposal or when it is withdrawn from use and no future economic
benefits are expected from its disposal. Any gain or loss arising from derecognition of an item of intangible assets is
included in profit or loss when it is derecognized.
For policies on impairment of intangible assets, see "(15) Impairment Losses (ii) Non-financial assets".
(7) Leases(i) Leases as lessee
Lease liabilities are measured at the discounted present value of outstanding lease payments at the commencement
date of the lease. After the commencement date of the lease, lease liabilities are measured by increasing the carrying
amount to reflect interest on the lease liabilities and reducing the carrying amount to reflect the lease payments made.
The interest rate implicit in the lease (if that rate can be readily determined) or lessee's incremental borrowing rate isused for the discount rate.
Right-of-use assets are measured at cost that is the initial measurement amount of lease liability at the commencement
date of the lease adjusted by the amount of any initial direct costs, prepaid lease payments and other expenses. Afterthe commencement date of the lease, right-of-use assets are measured at cost less any accumulated depreciation andaccumulated impairment losses as determined using the cost model. Right-of-use assets are depreciated on asystematic basis from the commencement date to the earlier of the end of the economic life of the underlying asset orthe end of the lease term.
Right-of-use assets are included in "Property, plant and equipment" or "Goodwill and intangible assets". Lease liabilities
are included in "Other financial liabilities (Current liabilities)" or "Other financial liabilities (Non-current liabilities)".
Lease payments for short-term leases and leases of low value assets are recognized as expense using the straight-line
method over the lease term. For contracts that include a lease component and a non-lease component, the Company
accounts for the lease component and the non-lease component as a single lease component without separating thenon-lease component.
In reference to whether a contract is a lease or whether a contract contains a lease, Toyota Industries makes judgments
based on the substance of the contract even though it is not legally considered as a lease.
(ii) Leases as lessor
Contracts containing leases are classified as finance leases whenever substantially all risks and economic values
incidental to the ownership of assets are transferred to the lessee, and other leases are classified as operating leases.
For financial leases, an amount equal to the net investment in the lease by discounting the total amount of lease
payments and unguaranteed residual value with the interest rate implicit in the lease is recorded as lease investment
assets. If Toyota Industries is a manufacturer or distributor lessor in a lease, selling profit or loss in a financial lease isrecognized at the commencement date of the lease. Financial income is allocated to each period over the lease termso that the interest rate is proportional to an amount equal to the net investment in the lease. If Toyota Industries is nota manufacturer or distributor lessor in a lease, financial income is allocated to each period over the lease term so thatthe interest rate will be proportional to an amount equal to the net investment in the lease.
Income from operating leases is recognized on a straight-line basis over the lease term, unless another systematic
basis is more representative of the time pattern in which use benefit derived from the leased asset is diminished.

― 23 ―

(8) Provisions
The Company recognizes provisions if it has a present legal or constructive obligation as a result of past events, it isprobable that an outflow of resources embodying economic benefits will be required to settle the obligation and theamount of obligation can be reliably estimated.
In case the time value of money is significant, the amount of a provision is measured at the present value of the amountof expenditures expected to be required to settle the obligation.
(9) Government Grants
A government grant is recognized at fair value when there is reasonable assurance that Toyota Industries will comply
with any conditions attached to the grant and it will receive the grant. When a grant is received for acquisition of anasset, the carrying amount of the asset is calculated by deducting the amount of the grant from the acquisition cost of
the asset.
(10) Employee Benefits(i) Post-employment benefits
Toyota Industries adopts the pension and lump-sum payment defined benefit plan and the defined contribution plan.
Toyota Industries' liabilities (assets) in respect of defined benefit plans is calculated for each plan by estimating theamount of future benefits earned by employees in the previous fiscal year and the fiscal year under review, discountingthat amount to the present value, deducting the fair value of plan assets, making adjustments concerning the asset
ceiling to that amount and, where necessary, considering economic benefits available. Remeasurements of liabilities(assets) in respect of defined benefit plans are recognized in other comprehensive income and at the time of theiroccurrence directly transferred from other components of equity to retained earnings. Past service cost is recognizedin profit or loss as it occurs. Market yields on high-quality corporate bonds with roughly the same maturity as that of
Toyota Industries' net defined benefit liabilities at the end of the reporting period are used as the discount rate. Interest
expenses on liabilities (asset) in respect of defined benefit plans are presented as financial expenses.
Contributions under the defined contribution plan are expensed as the employees' services are provided.
(ii) Short-term employee benefits
Short-term employee benefits are expensed as the relevant services are provided and are not discounted.
For bonuses, if Toyota Industries has the present legal and constructive obligation to pay them as the result of past
services provided by employees and the amount can be reliably estimated, the amount estimated to be paid isrecognized as a liability.
(iii) Other long-term employee benefits
The amount of an obligation in respect of the long-service travel award scheme is calculated by estimating the amountof future benefits earned by employees in the current and prior fiscal years and discounting that amount to the present
value.
Market yields on high-quality corporate bonds with roughly the same maturity as that of Toyota Industries' long-term
employee benefits at the end of the reporting period are used as the discount rate.
(iv) Share-based compensation
Toyota Industries has the cash-settled share-based compensation plan for some of its subsidiaries outside Japan. Cashsettled share-based compensation is measured at the fair value of the goods or services received and liabilities incurred.
The fair value of the liabilities is remeasured at the end of each reporting period and on the settlement date, and changes
in fair value are recognized in profit or loss.

― 24 ―

(11) Financial Instruments
A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity. The Group recognizes a financial asset or a financial liability when it becomes a party to
the contract of a financial instrument. A purchase or sale of financial assets is recognized or derecognized at the trade
date.
(i) Non-derivative financial assets
Toyota Industries categorizes non-derivative assets into financial assets measured at amortized cost, financial assets
measured at fair value through other comprehensive income (FVTOCI) and financial assets measured at fair value
through profit or loss (FVTPL).
For details of fair value measurement, see "29. Financial Instruments (3) Fair value of financial instruments".
(Financial assets measured at amortized cost)
Toyota Industries categorizes financial assets as financial assets measured at amortized cost if financial assets areheld with the objective of collecting contractual cash flows and their contractual terms provide cash flows on specified
dates that are solely payments of principal and interest on the principal amount outstanding. Financial assets
measured at amortized cost are initially measured at fair value. The carrying amount of financial assets measured atamortized cost is subsequently measured using the effective interest method.
(Financial assets measured at fair value)
Toyota Industries categorizes financial assets other than financial assets measured at amortized cost as financial
assets measured at fair value. Financial assets measured at fair value are further divided into the followingclassifications according to holding purpose.
(Equity instruments measured at fair value through other comprehensive income (FVTOCI))
Shares and other financial assets held mainly for the purpose of maintaining or enhancing business relationships withinvestors are designated at initial recognition as financial assets at FVTOCI.
Equity instruments at FVTOCI are measured at fair value at initial recognition and changes in fair value thereafter are
recognized in other comprehensive income. However, dividends arising from financial assets at FVTOCI arerecognized in profit or loss.
If an equity instrument at FVTOCI is derecognized, the cumulative amount of other comprehensive income recognizedin other components of equity on the consolidated statement of financial position is directly transferred to retained
earnings.
(Financial assets measured at fair value through profit or loss (FVTPL))
Financial assets not designated as financial assets at FVTOCI of financial assets measured by Toyota Industries areclassified as financial assets at FVTPL.
Financial assets at FVTPL are measured at fair value at initial recognition and changes in fair value thereafter are
recognized in profit or loss.
(ii) Non-derivative financial liabilities
Non-derivative financial liabilities are measured at fair value at initial recognition and thereafter at amortization costusing the effective interest method.
A financial liability is derecognized when its contractual obligations are discharged or canceled, or expire.

― 25 ―

(iii) Derivatives
Toyota Industries holds derivative financial instruments to hedge foreign currency and interest rate fluctuation risks,
including foreign currency forward contracts, currency options, currency swaps, interest rate swaps, interest rate andcurrency swaps, and interest rate options.
For all of these derivatives, Toyota Industries recognizes financial assets or financial liabilities when it becomes theparty to these derivatives contracts.
Some of derivatives Toyota Industries holds for hedging purposes do not meet hedge accounting requirements.
Changes in fair value of these derivatives are immediately recognized in profit or loss.
Toyota Industries adopts cash flow hedges and fair value hedges as a hedge accounting method.
(iv) Offsetting financial assets and liabilities
Financial assets and liabilities are offset and reported as net amounts in the consolidated statement of financial position
only if Toyota Industries currently has a legally enforceable right to set off the recognized amounts and intends to settle
on a net basis or to realize the asset and settle the liability simultaneously.
(12) Revenues
Toyota Industries recognizes revenue based on the following five-step model.
Step 1: Identify the contract with a customer
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation
Toyota Industries sells automotive-related products such as vehicles, engines, foundry parts for engines, car airconditioning compressors, electronics parts and batteries in the Automobile Business; lift trucks, warehouse trucks andaerial work platforms in the Materials Handling Equipment Business; and weaving machinery, spinning machinery,
instruments for yarn testing and cotton classing in the Textile Machinery Business. For sales of such products, since
the customer obtains control over the product when a customer accepts goods after inspection, and therefore theperformance obligation is judged to have been satisfied, Toyota Industries normally recognizes revenue when acustomer accepts goods after inspection. Revenue is measured at the amount of consideration promised in a contract
with the customer, net of discounts, incentives to distributors and other items.
For maintenance contracts and other services that include construction contracts in the Materials Handling Equipment
Business such as automated storage and retrieval systems, and logistics solutions, Toyota Industries recognizes
revenue based on the progress of performance obligation. The progress level is mainly computed according to the ratioof cumulative cost incurred against the total amount of estimated cost.

― 26 ―

(13) Financial Income and Financial Expenses
Financial income includes interest income, dividends income, gains on foreign currency translation and gain onderivatives (excluding gain or loss on hedging instruments that are recognized in other comprehensive income). Interest
income is recognized as earned using the effective interest method. Dividends income is recognized on the date of
Toyota Industries' vesting.
Financial expenses include interest expense, losses on foreign currency translation and loss on derivatives (excluding
loss on hedging instruments that are recognized in other comprehensive income).
(14) Income Taxes
Income taxes comprise current taxes and deferred taxes. These are recognized in profit or loss except taxes that arise
from items that are recognized either in other comprehensive income or directly in equity or from business combinations.
Taxes for the fiscal year under review are the expected taxes payable or receivable on the taxable profit or loss for theyear, using the tax rates and tax laws enacted or substantively enacted by the end of the reporting period.
Deferred tax assets and liabilities are recognized on temporary differences between the carrying amounts of assets andliabilities for accounting purposes and their tax basis. Deferred tax assets and liabilities are not recognized if thetemporary difference arises from the initial recognition of an asset or liability in a transaction not related to a businesscombination and affects neither accounting profit nor taxable profit at the time of transaction or in a transaction that
does not make a temporary taxable difference and a temporary deductible difference of the same amount at the time oftransaction.
Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries andaffiliates. However, deferred tax liabilities are not recognized if Toyota Industries is able to control the reversal of thetemporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred
tax assets arising from deductible temporary differences associated with such investments are only recognized to theextent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary
differences and they are expected to reverse in the foreseeable future.
Deferred tax assets and liabilities are measured at the tax rates expected to apply in the period in which the asset
realized or the liability is settled based on tax laws that have been enacted or substantively enacted by the end of thereporting period.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against
current tax liabilities and when income taxes are levied by the same taxation authority on the same taxable entity, or on
different taxable entities that intend either to settle current tax assets and liabilities on a net basis, or to realize theassets and settle the liabilities simultaneously.
Deferred tax assets are recognized for unused tax losses, tax credits and deductible temporary differences to the extent
that it is probable that taxable profits will be available against which they can be utilized. The carrying amount of deferred
tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable thatsufficient taxable profits will be earned to allow related tax benefits to be realized.
In addition, exceptions to recognition and disclosure are applied with respect to deferred tax assets and liabilities related
to tax laws enacted to implement the Pillar 2 (global minimum tax) model rule of the tax base erosion and profit shifting(BEPS) project announced by the Organization for Economic Cooperation and Development.

― 27 ―

(15) Impairment Losses(i) Financial assets
Financial assets measured at amortized cost are assessed for impairment losses based on expected credit losses.
At the end of the reporting period, if credit risk has not increased significantly after initial recognition, the amount of loss
allowance is calculated based on the expected credit losses resulting from default events that are possible within 12
months after the reporting date (12-month expected credit losses). On the other hand, at the end of the reporting period,
if credit risk has increased significantly after initial recognition, the amount of loss allowance is calculated based on the
expected credit losses resulting from all possible default events over the life of the financial instrument (lifetime expectedcredit losses).
However, regardless of the above, lifetime expected credit loss measurement always applies to trade receivables andlease investment assets without a significant financing component.
For details, see "29. Financial Instruments (2) Matters concerning risk management".
(ii) Non-financial assets
Toyota Industries reviews carrying amounts of non-financial assets, excluding inventories and deferred tax assets, atevery reporting fiscal year-end to determine whether there is any indication of impairment. If there is any indication of
impairment, impairment testing is conducted based on the recoverable amount of the asset. Goodwill and intangible
assets with indefinite useful lives are tested annually for impairment regardless of whether there is any indication of
impairment.
A cash-generating unit (CGU), which is a unit for conducting impairment testing, is the smallest group of assets thatgenerates cash inflows that are generally independent of cash flows of other assets or groups of assets. A CGU for
goodwill is the smallest unit monitored for internal control purposes and is no larger than an operating segment before
aggregation. Impairment testing for goodwill is conducted at a CGU or a group of CGUs for the smallest unit monitored
for internal control purposes and within the scope of an operating segment before aggregation.
The recoverable amount of an asset or CGU is the greater of its value in use or its fair value less cost to sell. In
calculating the value in use, estimated future cash flows are discounted to the present value using a pre-tax discountrate that reflects the time value of money and risks specific to the asset not considered in estimating future cash flows.
Because corporate assets do not generate independent cash inflows, if there is an indication that a corporate asset
may be impaired, impairment testing is conducted based on the recoverable amount for the CGU to which the corporate
asset belongs.
An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount. An
impairment loss recognized in relation to a CGU is allocated to reduce the carrying amount of assets within the CGU
on a pro rata basis determined by the relative carrying amount of each asset.
An asset or CGU impaired in prior years is reviewed at every reporting fiscal year-end to determine whether there is
any indication of a reversal of impairment loss recognized in prior years. The recoverable amount is estimated for an
impairment loss recognized in prior years for an asset or CGU with an indication of reversal of impairment, and the
impairment loss is reversed if the recoverable amount exceeds the carrying amount. The carrying amount after reversalof the impairment loss must not exceed the carrying amount of the asset that would be determined if no impairment had
been recognized and the asset had been depreciated or amortized until the reversal. An impairment loss recognized
for goodwill is not reversed.

― 28 ―

(16) Earnings per Share
Basic earnings per share are calculated by dividing profit attributable to ordinary equity holders of the parent entity by
the weighted-average number of common stock issued and outstanding after adjusting treasury stock for eachcalculation period. Diluted earnings per share take into account the impacts of all dilutive shares that bear the effects ofdilution in calculating the weighted-average number of shares issued and outstanding.
(17) Reporting by Segment
An operating segment is one of the constituent units of any business activity that earns revenue and incurs expenses,
including transactions with another operating segment. The results of all operating segments are such that their financial
information can be obtained individually and are periodically reviewed by the management for allocating management
resources to each segment and assessing operating performance.

― 29 ―

4. Segment Information
The operating segments reported below are the segments of Toyota Industries for which separate financial information
is available and are subject to evaluate regularly by executive management in deciding how to allocate resources and inassessing performance.
The reporting segments of Toyota Industries consist of Automobile, Materials Handling Equipment and Textile Machinery.
The similarity of products and services are taken into account for the separation. Within the Automobile Segment,
vehicles, engines, car air-conditioning compressors and others are included due to the similarity of their economic
characteristics such as net sales. The main products and services of each segment are as follows.
Segment

Main products and services of each segment

Automobile

Vehicles, diesel and gasoline engines, foundry parts for engines, car air-conditioning
compressors, electronics components, batteries

Materials Handling
Equipment

Lift trucks, warehouse trucks, automated storage and retrieval systems, aerial work
platforms, logistics solutions, sales financing businessTextile Machinery

Weaving machinery, spinning machinery, instruments for yarn testing and cotton classing

The accounting method of reporting segment information is based on "3. Material Accounting Policies".
Segment profit is based on operating profit.

― 30 ―

(1) Operating segment information(i) Sales, profits or losses, assets, liabilities and other material monetary information
FY2023 (April 1, 2022 - March 31, 2023)(Millions of yen)

Sales
Outside customer
sales
Inter-segment sales
and transfers
Total

Automobile

Materials
Handling
Equipment

TextileMachinery

957,8032,283,833

84,30953,9433,379,891－

3,379,891

35,132

1,088

279

32,22468,724(68,724)－

992,9362,284,922

84,58986,1673,448,616(68,724)

3,379,891

Others

Total

Adjustments Consolidated

Segment profit

34,636

121,856

7,807

5,418

169,718

185

169,904

Segment assets

837,701

2,904,760

78,540298,531

4,119,533

3,701,652

7,821,185

Financial income

103,728

Financial expenses(13,976)

Share of profit ofinvestments accounted
3,311
for by the equity
methodProfit before income
262,967
taxes(Notes) 1. "Others" represents businesses not included in the reporting segments, and its primary service is the landtransportation.
2 185 million yen included in "Adjustments" for "Segment profit" is mainly inter-segment transactions.
"Adjustments" for "Segment assets" includes corporate assets.
Corporate assets mainly consist of the Company's cash and deposits as well as marketable securities andinvestment securities.
3. "Segment profit" reconciles to operating profit disclosed in the consolidated statement of profit or loss.
Other material items(Millions of yen)

Depreciation andamortization
Impairment losses(amount in parenthesis
has been reversed)
Investments accounted
for by the equity
methodAutomobile

Materials
Handling
Equipment

TextileMachinery

68,174

183,103

3,603

2,881

257,762－

257,762

58

2,576

－

－

2,634

－

2,634

6,408

17,52249

623,987－23,987

Others

Total

Adjustments Consolidated

Increase in property,
plant and equipment
103,031
263,023
4,445
2,698
373,199
373,199－
and intangible assets(Note) "Others" represents businesses not included in the reporting segments, and its primary service is the landtransportation.

― 31 ―

FY2024 (April 1, 2023 - March 31, 2024)(Millions of yen)
Automobile

Materials
Handling
Equipment

TextileMachinery

Others

Total

Adjustments Consolidated

Sales
Outside customer
1,096,416
2,587,211
93,361
56,216
3,833,205
3,833,205－
salesInter-segment sales
23,0682,414
218
33,49859,199(59,199)－
and transfers
Total
1,119,485
2,589,626
93,57989,715
3,892,405(59,199)
3,833,205
Segment profit
18,230165,616
8,066
8,813
200,726(321)
200,404
Segment assets
895,226
3,551,751
112,291
301,318
4,860,588
6,217,873 11,078,462
Financial income
126,899
Financial expenses(21,391)
Share of profit ofinvestments accounted
3,276
for by the equity
methodProfit before income
309,190
taxes(Notes) 1. "Others" represents businesses not included in the reporting segments, and its primary service is the landtransportation.
2 (321) million yen included in "Adjustments" for "Segment profit" is mainly inter-segment transactions.
"Adjustments" for "Segment assets" includes corporate assets.
Corporate assets mainly consist of the Company's cash and deposits as well as marketable securities andinvestment securities.
3. "Segment profit" reconciles to operating profit disclosed in the consolidated statement of profit or loss.
Other material items(Millions of yen)

Depreciation andamortization
Impairment losses(amount in parenthesis
has been reversed)
Investments accounted
for by the equity
methodAutomobile

Materials
Handling
Equipment

TextileMachinery

67,912210,099

4,171

2,755

284,939－

284,939

257

5,719

0

－

5,977

－

5,977

6,823

23,13649

630,016－30,016

Others

Total

Adjustments Consolidated

Increase in property,
plant and equipment
121,923
334,5183,289
3,508
463,239463,239－and intangible assets(Note) "Others" represents businesses not included in the reporting segments, and its primary service is the landtransportation.

― 32 ―

(2) Sales by productOutside customer sales by product consist of the following.
(Millions of yen)
FY2023
FY2024(April 1, 2022 - March 31, 2023) (April 1, 2023 - March 31, 2024)
Automobile

957,803

1,096,416

Vehicle83,112

100,846

Engine322,404

330,848

Car air-conditioning compressor

429,733

466,152

Electronics parts and others

122,553

198,569

Materials Handling Equipment

2,283,833

2,587,211

Textile Machinery

84,30993,361Others53,94356,216

3,379,891

3,833,205

Total(3) Geographical information
Outside customer sales by geography consist of the following.

(Millions of yen)
FY2023
FY2024(April 1, 2022 - March 31, 2023) (April 1, 2023 - March 31, 2024)
Japan

875,460

918,848

U.S.A.

1,143,168

1,325,236

Others1,361,262

1,589,120

Total

3,379,891

3,833,205(Note) Net sales are provided by location of customer.
Non-current assets by geography consist of the following.
(Millions of yen)
FY2023(As of March 31, 2023)

FY2024(As of March 31, 2024)Japan

600,178

637,898

U.S.A.

489,471622,349

Netherlands

190,765

210,116

Others433,657

523,509

Total

1,714,073

1,993,874(Note) Non-current assets (excluding financial instruments, deferred tax assets, net defined benefit asset, and rights
arising from insurance contracts) are provided by location of assets.
(4) Principal customer information
Toyota Industries sells goods and provides services to Toyota Motor Corporation and its subsidiaries. Sales from Toyota
Motor Corporation and its subsidiaries amounted to 462,128 million yen and 549,186 million yen for the fiscal years
ended March 31, 2023 and 2024, respectively and were included in the outside customer sales of the Automobile,
Materials Handling Equipment and Others segments.
Toyota Industries sells goods to DENSO Corporation and its subsidiaries. Sales from DENSO and its subsidiaries
amounted to 468,975 million yen and 517,846 million yen for the fiscal years ended March 31, 2023 and 2024,
respectively and were included in the outside customer sales of the Automobile, Materials Handling Equipment andOthers segments.

― 33 ―

5. Cash and Cash Equivalents
Cash and cash equivalents consist of the following.
(Millions of yen)
FY2023(As of March 31, 2023)
Cash and deposits
Short-term investments (securities) which havean original maturity within three months
Total

FY2024(As of March 31, 2024)

202,731496,849－－

202,731496,849

The balance of cash and cash equivalents on the consolidated statement of financial position as of the end of the fiscal
years ended March 31, 2023 and 2024 are consistent with the balances of cash and cash equivalents on the consolidated
statement of cash flows.
These short-term investments are financial assets measured at amortized cost.
6. Trade Receivables and Other Receivables
Trade receivables and other receivables consist of the following.
(Millions of yen)
FY2023(As of March 31, 2023)

FY2024(As of March 31, 2024)

Trade notes and accounts receivable

589,841

638,464

Contract assets

74,386

61,294Loans for sales financing

256,943

351,273

Accounts receivable - other

48,89548,004

Lease investment assets

443,652

559,666

18

12

OthersElimination: Allowance for doubtful accounts
Total(13,521)(18,902)1,400,216

1,639,811

These receivables are mainly financial assets measured at amortized cost.
Amounts by collection or settlement period consist of the following.
(Millions of yen)
FY2023(As of March 31, 2023)

FY2024(As of March 31, 2024)

Due within 12 months

924,049

1,003,111

Due after 12 months

476,166

636,700

1,400,216

1,639,811

Total― 34 ―

7. Other Financial Assets(1) Outline of other financial assets
Other financial assets consist of the following.
(Millions of yen)
FY2023(As of March 31, 2023)

FY2024(As of March 31, 2024)

Loans

2,927

2,912

Stock

3,285,180

5,768,383

Derivative assets

31,43236,812Others

24,36325,643

3,343,904

5,833,752

Total

Current assets

5,399

5,564

Non-current assets

3,338,505

5,828,188

Total

3,343,904

5,833,752

Loans are categorized as financial assets measured at amortized cost, stock is mainly categorized as financial assets
measured at fair value through other comprehensive income and derivative assets are categorized as financial assets
measured at fair value through profit or loss (excluding items for which hedge accounting is applied). With respect toequity instruments measured at fair value through profit or loss included in stock or others, there is no monetarysignificance.
(2) Financial assets measured at fair value through other comprehensive income
Toyota Industries designates investments in equity instruments held for maintaining and reinforcing business relations
as financial assets measured at fair value through other comprehensive income in consideration of the purpose of holdingthem.
Name and fair values of financial assets measured at fair value through other comprehensive income consist of thefollowing.
(Millions of yen)Name

FY2023(As of March 31, 2023)

Toyota Motor Corporation

FY2024(As of March 31, 2024)

2,241,582

4,521,318

DENSO Corporation

516,341454,665

Toyota Tsusho Corporation

221,232

404,083

TOYOTA FUDOSAN Co., Ltd.

125,013

131,588

AISIN Corporation

75,492

128,845

Ibiden Co., Ltd.

32,731

41,375

Toyota Boshoku Corporation

16,576

19,927

JTEKT Corporation

7,977

11,157

Aisan Industry Co., Ltd.

4,286

8,119

Aichi Steel Corporation

3,183

5,421

Others47,12847,493

3,291,545

5,773,995

Total― 35 ―

(3) Derecognition of financial assets measured at fair value through other comprehensive income
To increase efficiency and promote the effective use of assets in holding, a part of financial assets measured at fair value
through other comprehensive income is sold, thereby terminating recognition thereof.
Fair value at the time of sale and cumulative profit or loss recognized as other comprehensive income for each fiscal
year consist of the following. Concerning the dividends recognized during the fiscal year ended March 31, 2024, thoserelating to the investment whose recognition was suspended during the fiscal year were immaterial. Cumulative profit orloss related to the disposal of financial liabilities is fully reclassified into retained earnings.
(Millions of yen)
FY2023
FY2024(April 1, 2022 - March 31, 2023) (April 1, 2023 - March 31, 2024)
Fair value at the time of termination of recognition

798

241,317

Cumulative profit or loss related to disposal

477

220,787(Note) Financial assets measured at fair value through other comprehensive income include debt instruments but they
were immaterial.
8. Inventories
Inventories consist of the following.
(Millions of yen)
FY2023(As of March 31, 2023)

FY2024(As of March 31, 2024)

Merchandise and finished goods

255,592

327,575

Work in process

136,470

142,605

Raw materials and supplies

132,322

148,900

Total

524,385

619,082

Expenses reclassified from inventories amount to 2,623,707 million yen and 2,932,058 million yen for the fiscal years
ended March 31, 2023 and 2024, respectively.
The amount of inventory write-down recognized as expenses (continuing business) and the reversal amount of writedown consist of the following.
(Millions of yen)
FY2023
FY2024(April 1, 2022 - March 31, 2023) (April 1, 2023 - March 31, 2024)
Amount of write-down

2,885

7,296

Reversal amount of write-down

1,157

1,073

― 36 ―

9. Property, Plant and Equipment(1) Increase (decrease)
Acquisition cost

(Millions of yen)
Leases as
lessorOther than leases as lessor
Buildings
andstructures
Balance as of April 1,
2022

Tools,
Machineryfurniture andand vehicles
fixtures

Total
Land

Construction Machinery
in progress and vehicles

624,062

1,111,935

176,229

149,486

61,154642,9092,765,778

Acquisition

36,47047,511

10,6704,271

96,450145,340

340,714

Disposal(15,580)(31,069)(8,672)

(186)

(83)

(55,944)(111,536)

18,34747,992

9,412

4,042

(99,243)

19,448－13,387

23,687

4,590

709

1,782

39,08983,248

2,926

(971)

1,144

1,610

(969)

(61,664)(57,925)

679,614

1,199,086

193,376

159,933

59,090729,1783,020,280

Acquisition

36,86455,883

12,235

3,976

126,281

181,472

416,713

Disposal(9,003)(54,503)(11,812)

(636)

(99)

(82,957)(159,012)

26,39542,691

7,428

3,245

(107,468)

27,706－33,18453,223

12,458

2,353

3,490

93,896

198,606

1,702

3,243

(5)

(811)

998

(47,367)(42,240)

Transfer from
Construction inprogress
Foreign currencytranslation difference
OthersBalance as of March
31, 2023

Transfer from
Construction inprogress
Foreign currencytranslation difference
OthersBalance as of March
768,758
1,299,625
213,681
168,060
82,293901,9293,434,348
31, 2024(Notes) 1. The amount related to property, plant and equipment in progress is presented as "Construction in progress".
2. "Others" includes "Inventories" related to materials handling equipment for operating lease and others.

― 37 ―

Accumulated depreciation and accumulated impairment losses(Millions of yen)
Leases as
lessorOther than leases as lessor
Buildings
andstructures
Balance as of April 1,
2022

Tools,
Machineryfurniture andand vehicles
fixtures

Total
Construction Machinery
in progress and vehicles

Land

333,965

836,951

143,017

2,023－

315,747

1,631,704

Depreciation

31,68067,692

15,909296－

112,131

227,709

Disposal(12,306)(29,215)(8,455)(24)－(37,713)(87,716)

251

58

－

(6)

－

2,331

2,634

5,449

19,835

3,826

5

－

17,01846,134

1,003

7,374

742

1,212

－

(48,060)(37,727)

360,043902,696

155,0393,505－

361,454

1,782,739

Depreciation

33,41870,381

17,255309－

127,667

249,032

Disposal(8,290)(52,199)(11,596)(7)－(53,783)(125,877)

368

1,078

0

26

－

2,622

4,095

14,54842,701

9,688

29

－

45,523

112,492

852

8,042

(106)

(1,088)－(44,178)(36,478)

Impairment losses(Reversal of
impairment losses)
Foreign currencytranslation difference
OthersBalance as of March
31, 2023

Impairment losses(Reversal of
impairment losses)
Foreign currencytranslation difference
OthersBalance as of March
400,940
972,702170,280
2,775
439,306
1,986,005－
31, 2024(Note) Depreciation and impairment losses of property, plant and equipment is included in mainly "Cost of sales" and"Selling, general and administrative expenses" in the consolidated statement of profit or loss.
Carrying amount(Millions of yen)
Leases as
lessorOther than leases as lessor
Buildings
andstructures
Balance as of April 1,
2022
Balance as of March
31, 2023
Balance as of March
31, 2024

Tools,
Machineryfurniture andand vehicles
fixtures

Total
Land

Construction Machinery
in progress and vehicles

290,097

274,984

33,212

147,463

61,154

327,162

1,134,074

319,571296,389

38,336

156,427

59,090367,724

1,237,540

367,817

326,922

43,400165,285

82,293

462,623

1,448,343― 38 ―

10. Goodwill and Intangible Assets(1) Increase (decrease)
Acquisition cost

(Millions of yen)
Intangible
assetsrecognizedthroughbusiness
combination

Development
assets

191,619

195,440

51,732

103,650

19,964562,406

Acquisition

－

－

－

16,28589

16,374

Increase throughin-house development－－

11,479

4,631－

16,110

Disposal

－

－

(970)

(1,030)(102)(2,103)Foreign currencytranslation difference

16,351

15,376

2,093

1,993

3,838

39,654

Others23,637

18,346

(95)

571

90

42,550231,608

229,162

64,239126,101

23,880674,992

Acquisition

－

－

－

19,622250

19,872

Increase throughin-house development－－

16,104

10,548－26,653

Disposal

－

－

(682)

(1,701)(31)(2,416)

Foreign currencytranslation difference

30,03929,282

5,829

7,272

2,839

75,263

Others

6,088

－

(659)

(632)

(959)

3,837

267,736

258,445

84,831

161,210

25,979798,202

Goodwill

Balance as of April 1, 2022

Balance as of March 31,
2023

Balance as of March 31,
2024― 39 ―

Software

OthersTotal

Accumulated amortization and accumulated impairment losses
Intangible
assetsrecognized Development
Goodwillthroughassetsbusiness
combination
Balance as of April 1, 2022

(Millions of yen)

Software

OthersTotal－

59,214

26,34472,454

8,510

166,524

Amortization－

10,767

8,471

9,078

1,735

30,053

Disposal

－

－

(970)

(1,022)(102)(2,095)

－

－

－

－

－

－

－

4,991

1,004

1,550

3,164

10,711

－

－

－

1,430

(0)

1,430

－

74,97334,85083,492

13,307

206,624

Amortization－

12,20910,732

10,342

2,621

35,906

Disposal

－

－

(262)

(1,512)(24)(1,799)

－

－

1,752

128

－

1,881

－

10,219

3,126

4,231

1,292

18,869

－

－

1,819

(653)

(2,421)(1,254)

Impairment losses(Reversal of impairment
losses)Foreign currencytranslation difference
OthersBalance as of March 31,
2023

Impairment losses(Reversal of impairment
losses)Foreign currencytranslation difference
OthersBalance as of March 31,
97,40352,01996,02914,775260,228－2024(Note) Amortization of intangible assets is included in "Cost of sales" and "Selling, general and administrative
expenses" in the consolidated statement of profit or loss.
Carrying amount(Millions of yen)

Goodwill

Balance as of April 1, 2022

191,619

Intangible
assetsrecognizedthroughbusiness
combination

Development
assets136,226

25,387

Software31,195

Others11,453

Total

395,882

Balance as of March 31,
231,608
154,189
29,38842,608
10,573
468,368
2023
Balance as of March 31,
267,736
161,041
32,812
65,180
11,203537,9742024(Notes) 1. Intangible assets recognized through business combination include customer-related assets and technologyrelated assets.
2. Development assets in progress included in development assets amounts to 5,284 million yen and 4,680
million yen as of the end of the fiscal years ended March 31, 2023 and 2024, respectively. Software in
progress included in software amounts to 18,782 million yen and 30,425 million yen as of the end of the fiscal
years ended March 31, 2023 and 2024, respectively.

― 40 ―

(2) Impairment testing of goodwill and intangible assets with an indefinite useful life
Toyota Industries performs, with respect to goodwill, impairment testing as necessary during each period or in case there
is a sign of impairment. The recoverable value in impairment testing is calculated based on value in use.
Value in use is calculated by discounting the estimated amount of cash flows based on the business plan for the next
five years that has been primarily approved by the management in present value. The estimation of cash flows is basedon the assumption that cash flows of more than five years will increase at a certain growth rate. The growth rate isdetermined by referencing the long-term expected growth rate of the market in which cash-generating units belong (about
1 to 4%). The discount rate is calculated based on the weighted-average capital cost before tax of cash-generating units(about 8 to 11%).
Toyota Industries concluded that even if there were reasonably possible changes in key assumptions used in the
impairment assessment, it is unlikely that a material impairment would arise.
With respect to the balance of goodwill as of the end of the fiscal years ended March 31, 2023 and 2024, major items
include: goodwill recognized in conjunction with the acquisition of the Cascade Corporation Group in the Materials
Handling Equipment Segment; goodwill recognized in conjunction with the business transfer of Toyota Industries
Commercial Finance, Inc. (TICF); goodwill recognized in conjunction with the acquisition of the Vanderlande Group;
goodwill recognized in conjunction with the acquisition of the Bastian Group; and goodwill recognized in conjunction withthe acquisition of the Uster Technologies AG Group in the Textile Machinery Segment. Goodwill recognized in conjunction
with the acquisition of the Cascade Corporation Group is allocated to the Materials Handling Equipment Business which
is functioning as the cash-generating unit and amounts to 32,625 million yen and 36,993 million yen as of the end of the
fiscal years ended March 31, 2023 and 2024, respectively. Goodwill recognized in conjunction with the business transfer
of TICF is allocated to the Materials Handling Equipment Business in North America which is functioning as the cashgenerating unit and amounts to 31,321 million yen and 35,514 million yen as of the end of the fiscal years ended March
31, 2023 and 2024, respectively. Goodwill recognized in conjunction with the acquisition of the Vanderlande Group isallocated to the Material Handling Equipment Business which is functioning as the cash-generating unit and amounts to
72,283 million yen and 81,017 million yen as of the end of the fiscal years ended March 31, 2023 and 2024, respectively.
Goodwill recognized in conjunction with the acquisition of the Bastian Group is allocated to the Material Handling
Equipment Business which is functioning as the cash-generating unit and amounts to 17,185 million yen and 20,407
million yen as of the end of the fiscal years ended March 31, 2023 and 2024, respectively. Goodwill recognized inconjunction with the acquisition of the viastore Group is allocated to the Material Handling Equipment Business which isfunctioning as the cash-generating unit and amounts to 24,349 million yen and 27,277 million yen as of the end of the
fiscal year ended March 31, 2023 and 2024, respectively. Goodwill recognized in conjunction with the acquisition of theUster Technologies AG Group is allocated to Uster Technologies AG group and amounts to 20,725 million yen and 23,702
million yen as of the end of the fiscal years ended March 31, 2023 and 2024, respectively.
Intangible assets with an indefinite useful life included in intangible assets recognized on business combinations
amounted to 45,403 million yen and 51,198 million yen at the end of the fiscal years ended March 31, 2023 and 2024,
respectively. These assets are primarily related to trademark recognized in connection with the acquisition of the
Vanderlande Group in the Materials Handling Equipment Segment. The Toyota Industries Group determined the usefullife to be indefinite because the trademark will survive for as long as the business continues. Intangible assets with anindefinite useful life recognized in connection with the acquisition of the Vanderlande Group were allocated on the basisthat the Vanderlande Group is a group of cash-generating units and amounted to 26,375 million yen and 29,546 million
yen at the end of the fiscal years ended March 31, 2023 and 2024, respectively.

― 41 ―

11. Investments Accounted for by the Equity Method
There are no affiliates of individual significance in the fiscal years ended March 31, 2023 and 2024. The carrying amounts
of investments in affiliates consist of the following.
(Millions of yen)
FY2023(As of March 31, 2023)
Total carrying amountFY2024(As of March 31, 2024)

23,98730,016

The amounts of equity in comprehensive income of affiliates of no individual significance consist of the following.
(Millions of yen)
FY2023(April 1, 2022 - March 31, 2023)
Amount of equity in profit
Amount of equity in other comprehensive
incomeAmount of equity in comprehensive income

FY2024(April 1, 2023 - March 31, 2024)

3,311

3,276

158

482

3,469

3,759

12. Trade Payables and Other Payables
Trade payables and other payables consist of the following.
(Millions of yen)
FY2023(As of March 31, 2023)
Trade notes and accounts payable

FY2024(As of March 31, 2024)

433,353441,691

Accounts payable - other

50,03952,711

Contract liabilities

120,428

151,300

Others203,652

231,221

Total

807,474

876,925

Trade payables and other payables are primarily financial liabilities measured at amortized cost. "Others" mainly includes
short-term employee debt and accrued expenses.
Breakdown by period until payment or settlement consists of the following.
(Millions of yen)
FY2023(As of March 31, 2023)

FY2024(As of March 31, 2024)

Due within 12 months

807,474

876,925

Due after 12 months

00807,474

876,925

Total― 42 ―

13. Corporate Bonds and Loans
Corporate bonds and loans consist of the following.
(Millions of yen)
Average
FY2023
FY2024interest rate
(As of March 31, 2023) (As of March 31, 2024)(%)

Repaymentdue

Short-term loans

110,132

77,647

5.24－

Commercial paper

180,605

143,038－－

Long-term loans repaid within one year

132,842

127,299

1.21－

Corporate bonds redeemed within
one year

96,16976,501－－Long-term loans

882,176

929,988

2.40

April 2025 August 2039

Corporate bonds

297,213351,791－－

1,699,139

1,706,266

－

－

Total
(Note)

The average interest rate reflects the weighted-average interest rate against the balance at the end of the fiscal
year ended March 31, 2024. Rates for corporate bonds are indicated in the summary of issuance terms ofcorporate bonds.

Corporate bonds and loans are financial liabilities measured at amortized cost.

― 43 ―

The summary of issuance terms of corporate bonds consists of the following.
(Millions of yen)Company
nameName

FY2023
FY2024
Interest(As of March 31, (As of March 31,
rate Collateral Issuance date Maturity date
2023)
2024)
(%)

The
Company

24th issuance ofcorporate bonds
without collateral

9,999

－

－

－

The
Company

29th issuance ofcorporate bonds
without collateral

19,97819,984

0.080

None

July 15,2016

June 19,
2026

The
Company

33rd issuance ofcorporate bonds
without collateral

9,994

9,998
(9,998)

0.150

None

April 27,2017

June 20,
2024

The
Company

2nd issuance ofU.S. dollar66,568
75,547denominated[USD498 million] [USD498 million]
senior unsecured
notes

3.566

None

March 16,2018

March 16,
2028

The
Company

35th issuance ofcorporate bonds
without collateral

9,997

－

－

－

－

－

The
Company

36th issuance ofcorporate bonds
without collateral

29,995

－

－

－

－

－

― 44 ―－－

(Millions of yen)CompanynameNameToyotaIndustries
Medium-term
FinancenotesInternational
AB

FY2023(As of March 31,2023)

FY2024
Interest(As of March 31,
rate Collateral Issuance date Maturity date
2024)
(%)

None

November 20, November 21,
2023
2028

0.427
－
4.406

None

October 25,
2017 －
February 14,
2022

2,830
[SEK200 million](2,830)

1.400

None

November 15, November 15,
2017
2024

8,327
[USD55 million](8,327)

6.315

None

September 27, September 27,
2023
2024

2,690
18,735[AUD30 million] [AUD190 million]

1.830
－
5.483

None

July 6,
July 6,2020 －
2027 －
September 6, September 6,
2023
2028

None

June 9,June 10,2020 －
2024 －
September 27, September 5,
2023
2030

7,000

0.900

ToyotaIndustries
Medium-term
FinancenotesInternationalAB

43,91856,777[EUR270 million][EUR390 million](16,281)ToyotaIndustries
Medium-term
FinancenotesInternational
AB

2,580
[SEK200 million]

ToyotaIndustries
Medium-term
FinancenotesInternational
AB

7,344
[USD55 million]

ToyotaIndustries
Medium-term
FinancenotesInternational
AB
ToyotaIndustries
Medium-term
Commercial notes
Finance, Inc.
Total

－

－

177,457

241,950[USD1,328 [USD1,597 million]
million](39,063)

393,382

428,293(76,501)

1.250
－
6.906

－

－

－

October 25,
2024 －
February 12,2027－(Notes) 1. The figure in parentheses in the "FY2024" is the amount to be redeemed within one year.
2. "Interest rate" indicates the interest rate against the balance at the end of the fiscal year ended March 31,
2024.
3. "Collateral" indicates any collateral associated with the balance at the end of the fiscal year ended March 31,
2024.
4. "Issuance date" indicates the issuance date associated with the balance at the end of the fiscal year ended
March 31, 2024.
5. "Maturity date" indicates the maturity date associated with the balance at the end of the fiscal year ended
March 31, 2024.

― 45 ―

14. Other Financial Liabilities
Other financial liabilities consist of the following.
(Millions of yen)
FY2023(As of March 31, 2023)
Lease liabilities

FY2024(As of March 31, 2024)

140,933

180,053

Derivative liabilities

9,577

18,621

Deposits payable

37,64337,598

Total

188,154236,273

Current liabilities

83,74993,950Non-current liabilities

104,404

142,323

Total

188,154236,273

Deposits payable is categorized as financial liabilities measured at amortized cost and derivative liabilities are
categorized as financial liabilities measured at fair value through profit or loss (excluding items for which hedge
accounting is applied).
15. Assets Pledged as Collateral and Secured Liabilities
Assets pledged as collateral consist of the following.
(Millions of yen)
FY2023(As of March 31, 2023)

FY2024(As of March 31, 2024)

Trade receivables and other receivables

35,86256,743Inventories

4,966

5,604

Property, plant and equipment

94Investment securities

186,460

306,480

Total

227,297368,832

Secured liabilities consist of the following.
Security interest may be exercised in case there is non-fulfillment of a loan agreement.
(Millions of yen)
FY2023(As of March 31, 2023)

FY2024(As of March 31, 2024)

Short-term loans

31,80536,312Others

32,09232,12363,89868,435

Total(Note)"Others" mainly includes Deposits received from employees.

― 46 ―

16. Provisions
Provisions are recorded in current liabilities and non-current liabilities on the consolidated statement of financial position.
Increase (decrease) of provisions in the fiscal years ended March 31, 2023 and 2024 consist of the following.
(Millions of yen)

16,194

Asset retirement
obligation
2,288

8,741

27,225

Increase due to provisions

20,397103

16,36436,864

Decrease due to intended use

Warranty provision
Balance as of April 1, 2022

OthersTotal(7,766)(225)(3,967)(11,959)

Decrease due to reversal

(509)

－

(670)

(1,180)Interest expenses based on discountcalculation, foreign currencytranslation difference and others

499

212

1,192

1,903

Balance as of March 31, 2023

28,814

2,379

21,66052,853

Increase due to provisions

12,596369

59,361

72,327

Decrease due to intended use(9,718)(88)(15,704)(25,511)

Decrease due to reversal

(179)

(38)

(950)

(1,168)Interest expenses based on discountcalculation, foreign currencytranslation difference and others

865

137

1,444

2,447

32,3792,759

65,811

100,950

Balance as of March 31, 2024

The warranty provision is recorded by recognizing the amount of expected expense payments required for future repairs.
It is expected in many cases that a repair or a payment is made within a year, while repairs or payments for some items
are made over a longer period of time because customers take longer to physically return defective products. Regarding
specific products for which the implementation of countermeasures against failures has been determined, the warranty
provision is recorded by individually assessing the amounts expected to be incurred, based on estimates of fault
rectification cost per unit, the number of units subject to fault rectification, and other market measures. Moreover, thenumber of units subject to fault rectification is estimated based on the actual result of past recalls and other market
measures. In the event that a warranty obligation arises due to defects in the Company's products which were notanticipated in the initial estimate of the provision or that the amount of warranty expense exceeds the amount of theprovision, there is a possibility that an additional warranty provision will be required. On the other hand, if the actual
warranty expense is lower than the initial estimate, a reversal of the warranty provision will be recorded.
Asset retirement obligations are accounted for by recognizing provision for asset demolition/disposal expenses,
expenses for restoring an asset to its original condition and payments arising as a result of using assets as well as byadding to the acquisition cost of the respective assets (property, plant and equipment, such as buildings). The respective
assets are depreciated over the number of years of depreciation as indicated "3. Material Accounting Policies".
"Others" mainly includes provision for litigation. Provisions of 11,079 million yen related to domestic engine certification
matter are also recorded in the fiscal year ended March 31, 2023 under review. Moreover, an allowance is provided forthe estimated cost arising from the suspension of shipments, including coverage for substitute trucks that arises inconnection with delays in delivery of ordered lift trucks and redress for suppliers. During the fiscal year ended March 31,
2024, a provision of 49,984 million yen related to the certification issue of engines for the domestic market is recorded.
The Company estimated the expenses related to the suspension of shipments of lift trucks and engines due to thecertification issue in Japan, including compensation for customers who purchased engines for automobiles and industrial
vehicles, expenses for addressing issues with domestic lift truck customers, and compensation for suppliers.
Subsequently, the Company recorded the provision based on the estimate. The estimated amount is based on themonthly cost incurred. This calculation is based on estimates and is inherently subject to uncertainty. Accordingly, actual
expenses may differ from estimates, and there is a possibility that additional provisions or a reversal of provisions will benecessary. These costs arising from suspension of shipments are expected to be paid during the next fiscal year.

― 47 ―

17. Employee Benefits
In regard to total expenses for employee benefits plans including other than post-employment plans, refer to "21.
Breakdown of Expenses by Nature".
(1) Overview of post-employment plans adopted
To provide for employee retirement benefits, Toyota Industries has adopted pension and lump-sum payment defined
benefit plans as well as defined contribution pension plans. The amount of benefits under the defined benefit plans isdetermined based on points earned by employees based on factors such as the number of years of service and grades,
the employee's final salary, the number of years of service and other terms. Furthermore, to provide for future benefits,
Toyota Industries makes contributions based on actuarial calculations using an estimated rate of wages and salaries.
The defined benefit pension plan, in compliance with relevant laws and regulations and with the consent of the employees,
sets the pension agreement stipulating the policy around eligibility, what is provided through the plan and the contributions
to be made by the Company. The agreement is approved by the Minister of Health, Labour, and Welfare. Under theagreement, the Company enters into a contract with an entrusted pension management institution on the payment ofcontributions as well as the management of plan assets to operate the pension plan. The pension management institution
has a fiduciary responsibility to manage the plan assets in accordance with the agreement. Furthermore, a retirement
benefit trust is set for some plans in Japan. Some subsidiaries outside Japan also adopt a wide range of defined benefit
plans in accordance with local laws and regulations.
(2) Defined benefit plans
The defined benefit plans related amounts recognized on the consolidated statement of financial position consists of thefollowing.
(Millions of yen)
FY2023(As of March 31, 2023)

FY2024(As of March 31, 2024)

Retirement benefit obligations

281,472

293,925

Fair value of plan assets

258,252

311,610Difference

23,219(17,684)

Effect of asset ceiling

30,31542,258Net defined benefit assets

27,88744,193Net defined benefit liabilities

81,422

68,767(Note)

Some plan assets offer availability of economic benefit through a refund based on which the asset ceiling is
calculated. The transition of the asset ceiling from the balance at the beginning of the period to the balance atthe end of the period is as indicated above.

― 48 ―

(i) Fluctuations of present value of defined benefit obligations(Millions of yen)Japan

Outside Japan

FY2023(April 1, 2022 March 31, 2023)

FY2024(April 1, 2023 March 31, 2024)

FY2023(April 1, 2022 March 31, 2023)

FY2024(April 1, 2023 March 31, 2024)

Balance at beginning of period

185,555

177,110

119,893

104,361

Service cost

9,158

8,540

2,764

2,533

Interest cost

1,423

2,134

3,436

4,691

1,096

(143)

(1,160)(8)(10,515)(6,913)(24,869)

957

(754)

985

4,216

1,813

Remeasurements
Actuarial gains (losses) arisingfrom changes in demographic
assumptions
Actuarial gains (losses) arisingfrom changes in financial
assumptions
Difference arising from revised
results
Prior service cost
Retirement benefits paid
Effect of foreign currencytranslation
OthersBalance at end of period

(9)

29

21

－

(8,881)(10,916)(3,979)(5,724)

－

－

4,565

14,110

37

(233)

(526)

594

177,110

170,594

104,361

123,330

The weighted-average duration associated with Toyota Industries' defined benefit obligation is 14.1 years in Japan and15.6 years outside Japan for the fiscal year ended March 31, 2023 and 14.1 years in Japan and 15.5 years outside Japanfor the fiscal year ended March 31, 2024.
(ii) Fluctuations of fair value of plan assets(Millions of yen)
Japan

Balance at beginning of period

Outside Japan

FY2023(April 1, 2022 March 31, 2023)

FY2024(April 1, 2023 March 31, 2024)

FY2023(April 1, 2022 March 31, 2023)

FY2024(April 1, 2023 March 31, 2024)

190,598

184,988

82,40373,264

Interest income

1,469

2,405

2,359

3,316

Revenue associated with plan
assets (excluding interest
income above)(7,751)36,095(15,378)(21)

Employer contributions

4,882

4,814

4,513

3,594

Return to employer

－

－

－

－

(4,204)(5,533)(3,106)(4,500)Exchange impact

－

－

4,450

13,400

Others(6)

3(1,978)(218)

184,988

222,774

73,264

88,835

Benefit payment

Balance at end of period

The projected amount of contributions to plan assets in the fiscal year ending March 31, 2025 is 7,150 million yen.

― 49 ―

(iii) Classes of plan asset
The classes of plan assets for the fiscal year ended March 31, 2023 consisted of the following.
(Millions of yen)Japan
Items with Items with no
publishedpublishedvalue in an value in an
active market active market
Stock
Jointly managed trust (Stock)50,860

Bonds
Jointly managed trust (Bonds)
Life insurance general account
Others

Outside Japan

Total

Items with Items with no
publishedpublishedvalue in an value in an
active market active market

50,86025,10814,495－－
25,108－－384
55,884384
55,884－25,483

7,581

19,685

Total

－

－
2,825

14,495
2,825－－

12,68820,185

12,68820,18525,483

－

3,370

3,370

27,266

19,120578

19,699Total plan assets
58,442
126,546
184,988
33,616
39,64873,264(Notes) 1. "Stock" includes 50,597 million yen in retirement benefits trusts established for the lump-sum retirement
benefits plans.
2. "Others" includes cash and deposits, etc.
The classes of plan assets for the fiscal year ended March 31, 2024 consisted of the following.
(Millions of yen)Japan
Items with Items with no
publishedpublishedvalue in an value in an
active market active market
Stock
Jointly managed trust (Stock)

Total

Items with Items with no
publishedpublishedvalue in an value in an
active market active market

Total

－
33,33378,68033,333

21,672

－

－

－
2,350

21,672
2,350

Bonds

－

225

225

－

17,20017,200

Jointly managed trust (Bonds)－

55,70255,702－

24,472

24,472

Life insurance general account－

25,771

25,771

－

3,854

3,854

8,658

20,402

29,06018,804481

19,285

Others78,680Outside Japan

Total plan assets
87,339135,435
222,774
40,47648,35988,835(Notes) 1. "Stock" includes 78,394 million yen in retirement benefits trusts established for the lump-sum retirement
benefits plans.
2. "Others" includes cash and deposits, etc.
Toyota Industries' basic policy for managing plan assets aims to secure profits required over the long term, within thescope of acceptable risks, to meet future benefit payment requirements under the defined benefit corporate pension
contract.
The targeted earnings rate is the earnings rate necessary to maintain the sound operation of the defined benefit corporate
pension into the future, which specifically means that the earnings rate exceeds the expected rate which becomes thebasis of calculation of future contribution under pension finance.
Both the Company and the institution entrusted with management are to confirm that the asset allocation for achieving
management's target is consistent with the basic investment policy and that the asset allocation ratios are revised as
required.
The basic policy may be amended in accordance with changes to the conditions of the Company and the systems andthe environment surrounding the Company.

― 50 ―

(iv) Actuarial assumptions
Important actuarial assumptions (weighted average) used for the calculation of the present value of the defined benefit
obligation consist of the following.
Japan

Outside Japan

FY2023
FY2024FY2023
FY2024(As of March 31, 2023) (As of March 31, 2024) (As of March 31, 2023) (As of March 31, 2024)
Discount rate

1.32%

1.63%

4.54%

4.49%

In cases where the discount rate fluctuates at the ratios indicated below, assuming there are no changes to otherassumptions, the defined benefit obligation as of the end of the fiscal year ended March 31, 2023 and 2024 would havebeen impacted as follows. While the sensitivity analysis assumes that there are no changes in other assumptions, it ispossible that changes in other assumptions could impact the sensitivity analysis.
(Millions of yen)
FY2023(As of March 31, 2023)
Japan
Discount rate
Outside Japan

FY2024(As of March 31, 2024)

0.5% increase(9,336)(8,615)

0.5% decrease

10,1859,603

0.5% increase(5,783)(6,823)

0.5% decrease

6,213

7,257

(3) Defined contribution pension plan
The amount of contributions paid for the defined contribution pension plan for the fiscal years ended March 31, 2023 and2024 were 15,757 million yen and 19,051 million yen, respectively. Welfare insurance premiums are accounted for in thedefined contribution pension plan and included in employee benefits expenses.
(4) Multi-employer plan
Certain subsidiaries in Japan participate in corporate pension funds of a multi-employer plan. Because the plan is a multiemployer-type defined benefit plan and the amount of pension investment corresponding to the contribution by one's
own company cannot be rationally calculated, the amount of contribution required is accounted for as retirement benefit
expenses.
The amount of the contribution required in each fiscal year consists of the following.
(Millions of yen)
FY2023
FY2024(April 1, 2022 - March 31, 2023) (April 1, 2023 - March 31, 2024)
Contributions

58

58

The projected contribution in the fiscal year ending March 31, 2025 is 58 million yen.
The funded and unfunded status, on an aggregation basis of the Group's entire plans are as follows.
(Millions of yen)
FY2023(As of March 31, 2023)
Plan assets
Actuarial liability based on pension plan financecalculation and minimum actuarial reserve
Funded/(Unfunded) amountFY2024(As of March 31, 2024)

45,24545,70049,64447,692(4,398)(1,992)

The rate of contributions of Toyota Industries within the entire plan consists of the following.
FY2023(As of March 31, 2023)
Rate of contribution

5.53%― 51 ―FY2024(As of March 31, 2024)
5.71%

18. Equity and Other Equity Items(1) Capital stock and capital surplus
The Companies Act in Japan stipulates that no less than half of the payment or performance for issuing equity shall beincorporated into capital stock, and the remaining amount shall be incorporated into capital surplus, which is included incapital reserve. Moreover, the capital reserve may be incorporated into capital stock by a resolution of the General
Meeting of Shareholders under the Companies Act.
The number of shares authorized in the fiscal years ended March 31, 2023 and 2024 is 1,100,000,000 shares,
respectively.
The breakdown of changes in the number of shares issued and fully paid consist of the following.
Number of shares(Shares)
Beginning of FY2023 (As of April 1, 2022)

325,840,640

Increase (decrease) during period
FY2023 (As of March 31, 2023)

Capital stock(Millions of yen)

Capital surplus(Millions of yen)

80,462

102,388－－(1,143)

325,840,640

80,462

101,245－－(1,663)

Increase (decrease) during period

FY2024 (As of March 31, 2024)
325,840,640
80,462
99,581(Note) All shares issued by the Company are common stock, which has no restrictions on the content of rights and nopar value.
(2) Retained earnings
The Companies Act stipulates that one tenth of the surplus that would decrease due to the distribution of dividend of
surplus shall be accumulated as capital reserve or retained earnings until the total amount of capital reserve and retained
earnings reaches one fourth of capital. Accumulated retained earnings may be appropriated to compensate for losses.
Moreover, retained earnings may be reduced by a resolution of the General Meeting of Shareholders.
In addition, the distributable amount under the Companies Act is calculated based on statutory capital surplus andretained earnings in accordance with accounting standards generally accepted in Japan, and statutory capital reserve
and legal retained earnings are excluded from the distributable amount.

― 52 ―

(3) Treasury stock
The Companies Act stipulates that treasury stock may be acquired with a resolution of the General Meeting of
Shareholders deciding the number of shares to be acquired, the total amount of the acquisition price and other matterswithin the scope of the distributable amount. Moreover, if through market transactions or tender offers, treasury stock
may be acquired by a resolution of the meeting of the Board of Directors within the scope of the requirements stipulatedby the Companies Act, in accordance to the provisions of the Articles of Incorporation.
Changes in the number and balance of treasury stock consist of the following.

Number of shares (Shares)
Beginning of FY2023 (As of April 1, 2022)

Amount (Millions of yen)

15,360,786

Increase (decrease) during period
FY2023 (As of March 31, 2023)
Increase (decrease) during period
FY2024 (As of March 31, 2024)

59,339736

515,361,522

59,3452,083

24

15,363,605

59,369(4) Other components of equity(i) Net changes in revaluation of FVTOCI financial assets
It is the accumulated amount of net changes in revaluation of financial assets measured at fair value through othercomprehensive income.
(ii) Remeasurements of defined benefit plans
Remeasurements of defined benefit plans show the amount affected by differences between actuarial assumptions at
the beginning of the fiscal year and actual results, as well as the amount affected by changes in actuarial assumptions.
They are recognized in other comprehensive income at the time of their occurrence and immediately transferred fromother components of equity to retained earnings.
(iii) Translation adjustments of foreign operations
This shows translation adjustments arising from converting the financial statements in the functional currency of foreign
operations of Toyota Industries into those in the Japanese yen which is the presentation currency of Toyota Industries.
(iv) Cash flow hedges
This shows the accumulated amount of effective hedges among the gains and losses arising from changes in the fairvalue of hedging instruments for cash flow hedges.

― 53 ―

19. Cash Dividends(1) Dividends paid
FY2023 (April 1, 2022 - March 31, 2023)
Resolutions

Class of shares

Total dividends(Millions of yen)

Dividends per
share (Yen)

Board of Directors meeting
held on April 28, 2022

Common stock

27,943

Board of Directors meeting
held on October 28, 2022

Common stock

Record date

Effective date90

March 31, 2022

May 26, 2022

27,94390

September 30,
2022

November 25,
2022

Record date

Effective date

FY2024 (April 1, 2023 - March 31, 2024)
Resolutions

Class of shares

Total dividends(Millions of yen)

Dividends per
share (Yen)

Board of Directors meeting
held on April 27, 2023

Common stock

31,047

100

March 31, 2023

May 25, 2023

Board of Directors meeting
held on October 31, 2023

Common stock

31,047100

September 30,
2023

November 27,
2023(2) Dividends with a record date in the fiscal year ended March 31, 2024 for which the effective date falls in the following
fiscal year

Resolutions

Class ofshares

Source ofdividends

Board of Directors meeting
held on April 26, 2024

Commonstock

Retainedearnings

Total dividends Dividends per(Millions of yen) share (Yen)
43,466― 54 ―

140

Record date Effective date
March 31,2024

May 27,2024

20. Revenues(1) Disaggregation of revenues
As specified in Note 4 "Segment Information," the reporting segments of the Toyota Industries consist of Automobile,
Materials Handling Equipment and Textile Machinery. Within the Automobile Segment, vehicles, engines, car airconditioning compressors and others are included due to the similarity of their trend of sales and other economic
characteristics. In addition, sales are geographically broken down according to the location of customers. The
disaggregation of sales of these sub-segments as well as sales of each reporting segment are as follows.
FY2023 (April 1, 2022 - March 31, 2023)(Millions of yen)Japan

U.S.A.

Others

Total

Vehicle83,112－－

83,112Engine269,632

321

52,450322,404

92,393

142,892

194,481429,767

93,733

11,90016,919122,553

275,917782,042856,198

1,914,158

Textile Machinery

1,562

3,216

79,53184,309Others53,700－243

53,943

Revenues from contracts withcustomers

870,052

940,372

1,199,824

3,010,249

Revenues from other sources

5,408

202,795

161,437

369,641

875,460

1,143,168

1,361,262

3,379,891

Automobile

Car Air-Conditioning
Compressor
Electronics Parts
and Others

Materials Handling Equipment

Total(Notes) 1. Revenues from contracts with customers is recognized in the Materials Handling Equipment Segment andamounted to 460,237 million yen.
2. Revenues from other sources includes lease income based on IFRS 16 and it is recognized mainly in the
Materials Handling Equipment Segment.
FY2024 (April 1, 2023 - March 31, 2024)(Millions of yen)Japan

U.S.A.

Others

Total

Vehicle100,846－－

100,846

Engine264,057

298

66,492

330,848

100,791

154,347

211,300

466,439

164,022

15,231

19,314

198,569

226,539903,228

981,800

2,111,568

Textile Machinery

1,414

3,155

88,791

93,361Others55,979－237

56,216

Revenues from contracts withcustomers

913,651

1,076,261

1,367,936

3,357,849

Revenues from other sources

5,197

248,974

221,184

475,356

918,848

1,325,236

1,589,120

3,833,205

Automobile

Car Air-Conditioning
Compressor
Electronics Parts
and Others

Materials Handling Equipment

Total(Notes) 1. Revenues from contracts with customers is recognized in the Materials Handling Equipment Segment andamounted to 510,575 million yen.
2. Revenues from other sources includes lease income based on IFRS 16 and it is recognized mainly in the
Materials Handling Equipment Segment.

― 55 ―

The Automobile Segment sells automotive-related products such as vehicles, diesel and gasoline engines, foundry partsfor engines, car air-conditioning compressors, electronics components and battery. Its primary customers include
automotive-related manufacturers in and outside Japan.
The Materials Handling Equipment Segment sells and provides maintenance for lift trucks, warehouse trucks, aerial work
platforms and other products as well as provides services including the construction of automated storage and retrieval
systems, and logistics solutions. Its primary customers include users and dealers in and outside Japan.
The Textile Machinery Segment sells weaving machinery, spinning machinery, instruments for yarn testing and cotton
classing, and other products. Its primary customers include dealers in and outside Japan.
Sales derived from the sale of these products accounted for in accordance with Note 3 "Material Accounting Policies."
The amount of variable consideration, such as net of discounts, incentives to distributors and other items included inrevenues, is immaterial. In addition, the amount of promised consideration is generally received within one year and does
not include a material financial component.
(2) Contract balances
Receivables from contracts with customers, contract assets and contract liabilities consist of the following.
(Millions of yen)
Receivables from contracts
with customers
Balance of as April 1,
2022
Balance of as March 31,
2023
Balance of as March 31,
2024

Contract assets

Contract liabilities

462,327

51,170140,730

579,620

74,386

120,428

625,705

61,294

151,300

Receivables from contracts with customers and Contract assets are included in "Trade receivables and other receivables"
and Contract liabilities are included in "Trade payables and other payables" in the consolidated statement of financial
position.
Revenue recognized in the years ended March 31, 2023 and 2024, which was included in the balance at beginning of
period of contract liabilities, amounted to 140,154 million yen and 115,951 million yen, respectively. During the fiscal year
ended March 31, 2023 and 2024, the profit amounts recognized from performance obligations satisfied (or partiallysatisfied) in previous fiscal years were immaterial.
(3) Transaction price allocated to remaining performance obligations
The total transaction price allocated to remaining performance obligations and periods when the revenue is expected tobe recognized at the end of the year ended March 31, 2023 and 2024 consist of the following. As Toyota Industries
applies the allowable practical expedient, the below amounts do not include a transaction for unsatisfied performanceobligations with an individual expected contract period of one year or less.
(Millions of yen)
FY2023(As of March 31, 2023)

FY2024(As of March 31, 2024)

Within one year

313,703

393,514Over one year but within five years

290,365384,706

4,391

26,985

608,460

805,206

Over five years
Total― 56 ―

21. Breakdown of Expenses by Nature
Principal items of cost of sales and selling, general and administrative expenses consist of the following.
(Millions of yen)
FY2023(April 1, 2022 - March 31, 2023)
Purchase of raw materials and goods

FY2024(April 1, 2023 - March 31, 2024)

1,661,968

1,820,300

Employee benefit expenses

809,314925,470

Depreciation and amortization

256,912283,136

22. Research and Development Expenses
Research and development expenses included in cost of sales and selling, general and administrative expenses consistof the following.
(Millions of yen)
FY2023(April 1, 2022 - March 31, 2023)
Research and development expenses

101,775

FY2024(April 1, 2023 - March 31, 2024)
116,743

23. Other income and Expenses
Other income consist of the following.
(Millions of yen)
FY2023(April 1, 2022 - March 31, 2023)
Rental fees for fixed assets

890

Gain on sales of fixed assets

FY2024(April 1, 2023 - March 31, 2024)
892

867

1,671

Others26,472

21,773

Total

28,23024,336

Other expenses consist of the following.
(Millions of yen)
FY2023(April 1, 2022 - March 31, 2023)

FY2024(April 1, 2023 - March 31, 2024)

Loss on disposal of fixed assets

1,346

Loss on sales of fixed assets

148

802

Depreciation and amortization

850

1,802

Domestic certification-related loss

20,751

49,387

Others

14,651

14,344

Total

37,74868,330― 57 ―

1,992

24. Financial Income and Financial Expenses
Financial income consists of the following.
(Millions of yen)
FY2023(April 1, 2022 - March 31, 2023)
Interest income
Financial assets measured atamortized cost
Financial assets measured atfair value through profit or loss
OthersDividends income
Financial assets measured at fair value
through other comprehensive income
Gains on foreign currency translation

FY2024(April 1, 2023- March 31, 2024)

5,159

9,926

1,671

4,837

－

－

88,593106,993

4,870

1,844

Others

3,433

3,298

Total

103,728

126,899

Financial expenses consist of the following.
(Millions of yen)
FY2023(April 1, 2022 - March 31, 2023)
Interest expenses
Financial liabilities measured atamortized cost
Financial liabilities measured atfair value through profit or loss
Others
Losses on foreign currency translation

FY2024(April 1, 2023 - March 31, 2024)

9,224

15,802

－

－

886

1,186

－

－

Others

3,865

4,402

Total

13,976

21,391― 58 ―

25. Income Taxes(1) Income tax expenses
Income tax expenses consist of the following.
(Millions of yen)
FY2023(April 1, 2022 - March 31, 2023)

FY2024(April 1, 2023 - March 31, 2024)

Current tax expenses

72,191

101,935

Deferred tax expenses(7,940)(29,600)

Total

64,25072,335(Note)

Deferred tax expenses is due primarily to taxable temporary differences that arose and reversed for the fiscal
year ended March 31, 2023, and the fiscal year ended March 31, 2024.

The difference between the statutory effective tax rate and the actual tax rate consist of the following.
(%)
FY2023(April 1, 2022 - March 31, 2023)

FY2024(April 1, 2023 - March 31, 2024)

30.9

30.9

(4.4)

(4.5)

0.6

1.0

(0.4)

(0.3)

Others

(2.3)

(3.7)

Actual tax rate

24.4

23.4

Statutory effective tax rate
Dividends income and others permanently
not recognized as taxable income
Effect of reassessment on recoverability ofdeferred tax assets
Share of profit of investments accounted forby the equity method(Note)

Toyota Industries has mainly had to pay income, inhabitants and enterprise taxes, and the statutory effective
tax rate calculated based on these taxes was 30.9% for the fiscal years ended March 31, 2023 and 2024.
Subsidiaries outside Japan, however, pay income and other taxes depending on their locations.

― 59 ―

(2) Deferred tax assets and deferred tax liabilities
Deferred tax assets and deferred tax liabilities consist of the following.
FY2023 (April 1, 2022 - March 31, 2023)(Millions of yen)
Balance at
beginning of
periodRecognized in
Recognized inotherBalance at
profit or loss comprehensive end of period
incomeDeferred tax assets
Net defined benefit liabilities
Allowance for compensated absences

31,737
8,957

(136)
300

(2,331)－

29,2709,257

Allowance for bonuses
Net operating loss carry-forwards for tax purposes

8,333
4,573

749
538

－
－

9,083
5,111

Accrued expenses
Inventories

12,247
4,724

7,320
(188)

19,568
4,535

OthersTotal deferred tax assets

40,991
111,564

8,224
16,808－－(888)(3,219)48,326125,153

1,007,571－(127,135)

880,435

69,011

10,677
9,239
19,917－(2,957)(130,093)

79,68973,714
1,150,297

Deferred tax liabilities
Financial assets at fair value throughother comprehensive income
Depreciation
OthersTotal deferred tax liabilities

79,996
1,040,121

Net amount(1,038,732)(3,108)
126,873(914,967)(Note) The difference between the amount recognized through net profit or loss and deferred tax expenses is due toforeign currency translation adjustments.
FY2024 (April 1, 2023 - March 31, 2024)(Millions of yen)
Balance at
beginning of
periodDeferred tax assets
Net defined benefit liabilities

Recognized in
Recognized inotherBalance at
profit or loss comprehensive end of period
income29,270(1,002)(4,586)

23,681

Allowance for compensated absences
Allowance for bonuses

9,257
9,083

355
1,248

－
－

9,613
10,331

Net operating loss carry-forwards for tax purposes
Accrued expenses

5,111
19,568906
14,680－－6,018
34,248Inventories
Lease liabilities

4,535
48,767

4,488
16,071

9,024
64,838OthersTotal deferred tax assets

48,302
173,896

16,90153,649－－256(4,330)65,459223,215880,435－

774,076

1,654,511

79,68928,981

8,611
8,732

－
－

88,30037,71422,03377,723

10,584
6,895

－
4,085

32,61888,705

1,088,864

34,823778,161

1,901,850

Deferred tax liabilities
Financial assets at fair value throughother comprehensive income
Depreciation
Right-of-use assets
Lease investment assets
OthersTotal deferred tax liabilities

Net amount(914,967)
18,825(782,492)(1,678,634)(Note) 1. The difference between the amount recognized through net profit or loss and deferred tax expenses is due
to foreign currency translation adjustments.
2. Changes in deferred tax assets and deferred tax liabilities recognized through other comprehensive income
include amounts transferred to retained earnings from accumulated other comprehensive income due to thederecognition of equity instruments measured at fair value through other comprehensive income.

― 60 ―

Deferred tax assets and deferred tax liabilities on the consolidated statement of financial position consist of the following.
(Millions of yen)
FY2023(As of March 31, 2023)
Deferred tax assets

FY2024(As of March 31, 2024)

37,992

51,597

Deferred tax liabilities

952,960

1,730,231

Net amount(914,967)(1,678,634)

Loss carry-forwards, unused tax credits and future deductible temporary differences which are not recognized asdeferred tax assets consist of the following.
(Millions of yen)
FY2023(As of March 31, 2023)

FY2024(As of March 31, 2024)

Net operating loss carry-forwards for tax purposes

20,82623,251

Unused tax credits

1,501

1,778

Deductible temporary differences

4,198

4,413

Total

26,52729,443

Amount and the time limit for a loss carry-forwards which is not recognized as deferred tax assets consist of the following.
(Millions of yen)
FY2023(As of March 31, 2023)

FY2024(As of March 31, 2024)

First year

－

1,292

Second year

77

665

Third year

60

884

Fourth year

27

621

Beyond fifth year

20,66019,786

Total

20,82623,251

The total amount of taxable temporary differences associated with investments in subsidiaries not recognized as deferred
tax liabilities as of the end of the fiscal year ended March 31, 2023 and 2024, was 877,592 million yen and 1,149,847
million yen, respectively.
Toyota Industries has not recognized deferred tax liabilities related to those temporary differences because it considers
that it can control the timing to resolve temporary differences, and they are not likely to be resolved within the foreseeable
period.
(Global minimum tax)
Pillar 2 model rules for global minimum tax have been established in certain jurisdictions where the Toyota Industries
Group operates. The Group must adhere to the Pillar 2 model rules that have been established or effectively establishedand has therefore assessed the potential impact of Pillar 2 on its corporate income tax. The assessment is based on theGroup companies' latest tax returns and reports by country. The assessment shows that the Group's effective tax rate
exceeds 15% under the Pillar 2 model rules in almost all relevant jurisdictions. Additionally, the Group has determinedthat Pillar 2 has no significant impact on its corporate income tax in the jurisdictions where its effective tax rate is below
15%. This conclusion is based on the tax rates and projected income in the jurisdictions.

― 61 ―

26. Earnings per Share(1) Basis of calculation for basic earnings per share(i) Profit attributable to owners of common stock of the parent(Millions of yen)
FY2023
FY2024(April 1, 2022 - March 31, 2023) (April 1, 2023 - March 31, 2024)
Profit attributable to owners of common stockof the parent

192,861

228,778(ii) Weighted-average number of common stock(Thousands)
FY2023
FY2024(April 1, 2022 - March 31, 2023) (April 1, 2023 - March 31, 2024)
Weighted-average number of common stock

310,479

310,478(2) Basis of calculation for diluted earnings per share
Diluted earnings per share is the same amount with basic earnings per share because there are no dilutive shares.

― 62 ―

27. Other Comprehensive Income(Millions of yen)
FY2023
FY2024(April 1, 2022 - March 31, 2023) (April 1, 2023 - March 31, 2024)
Net changes in revaluation of FVTOCI
financial assets
Amount arising during the period
Before tax effect adjustment
Tax effect
Net changes in revaluation of FVTOCI
financial assets
Remeasurements of defined benefit plans
Amount arising during the period(411,941)

2,724,101(411,941)
127,135

2,724,101(841,861)(284,805)

1,882,239(49)

27,439Before tax effect adjustment
Tax effect

(49)
626

27,439(8,672)Remeasurements of defined benefit plans

576

18,76656,074

147,969－
56,074－
147,969

1,763

(339)

Recycling
Before tax effect adjustment

2,056
3,820

(334)
(674)

Tax effectCash flow hedges

(888)
2,931

256
(418)

Translation adjustments of foreign operations
Amount arising during the period
Recycling
Translation adjustments of foreign operations
Cash flow hedges
Amount arising during the period

Share of other comprehensive income of affiliates
accounted for by equity method
Amount arising during the period
Recycling
Share of other comprehensive income ofaffiliates accounted for by equity method
Total other comprehensive income

158

1,547

－

(1,065)158

482(225,065)

2,049,040

28. Important Non-Cash Transactions
Important non-cash transactions (investments and financial transactions which do not use cash and cash equivalents) arepresented in Note 30 "Leases" for the increase in right-of-use assets.

― 63 ―

29. Financial Instruments(1) Capital management
Toyota Industries' financial policy is to ensure sufficient financing and liquidity for its business activities and to maintainstrong financial position. Through the use of such current assets as cash and cash equivalents and short-term
investments, as well as cash flows from operating activities, issuance of corporate bonds and loans from financial
institutions, Toyota Industries believes that it will be able to provide sufficient funds for the working capital necessary to
expand existing businesses and develop new projects. The Company defines equity capital as the amount of share ofequity attributable to owners of the parent excluding the subscription rights to shares.
The Company is not subject to external capital controls as of March 31, 2024.
(2) Matters concerning risk management(i) Risk management policy
Toyota Industries is exposed to financial risks related to its marketing activities (credit risk, liquidity risk, market risk, etc.).
These risks are managed, based on the treasury policy for avoiding or reducing the effects of such risks.
The Company uses derivatives to avoid the risks explained below and does not engage in speculative transactions.
i) Credit risk
The main receivables of Toyota Industries such as accounts receivable, lease investment assets and loans receivable
related to the sales financing business have credit risk (risk concerning non-performance of an agreement by thecounterparty). In accordance with internal rules including the treasury policy, Toyota Industries strives to promptly
identify and reduce concerns about collection due to a deterioration in the financial conditions and others of its main
counterparties by regularly monitoring their situation based on their financial statements, ratings and others, andconducting due date management and balance management. Collection risk of lease investment assets is minimal
because their ownership is not transferred and due date management and balance management are conducted.
Toyota Industries has no material concentrations of credit risk with any counterparty.
When using derivative transactions, Toyota Industries mainly deals with only financial institutions evaluated as highly
creditworthy by rating agencies to mitigate the counterparty risk.
Regarding accounts receivable, lease investment assets and loans receivable related to the sales financing business,
if all or part of them cannot be collected or are deemed to be extremely difficult to collect, they are regarded as nonperforming.
The total carrying amount of financial assets represents the maximum exposure to credit risk.
(Measuring expected credit loss for accounts receivable and lease investment assets)
Because there is no material financing component in accounts receivable, the loss evaluation allowance is calculated
as lifetime expected credit losses until collection of accounts receivable. For lease investment assets, the loss
evaluation allowance is calculated as lifetime expected credit losses until collection of lease investment assets. With
regard to accounts receivable and lease investment assets of debtors who have no material problems in theirbusiness conditions, the expected credit loss rate is measured collectively, taking into account the past track recordof bad debts and other factors. If there are material effects of changes in economic and other conditions, the loan
loss provision ratio based on the past track record of bad debts will be adjusted and reflected in the forecast ofpresent and future economic situations.

― 64 ―

(Measuring expected credit loss for loans receivable related to the sales financing business)
If credit risk has not increased significantly since initial recognition, the loss evaluation allowance for loans receivable
related to the sales financing business is calculated as of the end of the fiscal year by collectively estimating the
expected credit loss rate for the following 12 months based on the past track record of bad debts and other factors.
If there are material effects of changes in economic and other conditions, the loan loss provision ratio based on thepast track record of bad debts will be adjusted and reflected in the forecast of present and future economic situations.
On the other hand, if credit risk has increased significantly as of the end of the fiscal year since the initial recognition,
the loss evaluation allowance for financial instruments is calculated by individually estimating the lifetime expectedcredit losses of collecting financial instruments based on the past track record of bad debts and the collectible
amount in the future among other factors. Assets that are regarded as non-performing are recorded as credit
impaired financial assets.
Expected credit loss of accounts receivable and lease investment assets for which simplified approaches are appliedconsist of the following.
FY2023 (As of March 31, 2023)(Millions of yen)
Before due dateWithin 30 days
after due date

Over 30 days but
within 90 days
after due date

Over 90 days
after due date

0.4%

0.8%

4.1%

39.7%

Expected credit loss
rate
Accounts receivableand lease investment
assetsLifetime expected credit
lossesTotal－

1,076,191

39,43923,711

17,433

1,156,776

4,100

332

981

6,917

12,331

FY2024 (As of March 31, 2024)(Millions of yen)

Expected credit loss
rate
Accounts receivableand lease investment
assetsLifetime expected credit
losses

Before due dateWithin 30 days
after due date

Over 30 days but
within 90 days
after due date

Over 90 days
after due date

0.4%

0.4%

5.6%

40.4%

Total

－

1,203,106

54,74924,76724,806

1,307,429

4,767

239

1,375

10,021

16,404

Among financial assets, the general approach is applied mainly to loans receivable related to the sales financing
business. The carrying amount of loans receivable related to the sales financing business, categorized by credit risk
for its measurement, consists of the following.
(Millions of yen)Stage 112-month expectedcredit losses
FY2023(As of March 31, 2023)
FY2024(As of March 31, 2024)

Stage 2Lifetime expectedcredit losses

Stage 3Credit impaired
financial assets

Total

256,028909

110

257,048

349,888

1,175

318

351,382― 65 ―

Changes in expected credit loss consist of the following.
FY2023 (As of March 31, 2023)(Millions of yen)Accounts receivableand lease investment
assetsLifetime expectedcredit losses
Balance at beginningof period
New financial assets
composed orpurchased
Transfer to lifetime
expected credit
lossesTransfer to credit
impaired financial
assetsTransfer to 12-month
expected credit
lossesFinancial assets
with recognitionsuspended during theperiodOthersBalance at end of
periodLoans receivable related to the sales financing business, and others
Stage 112-month expectedcredit losses

Stage 2Lifetime expectedcredit losses

Stage 3Credit impaired
financial assets

11,108

1,001

61

64

6,856

160

－

－

－

－

－

－

－

－

－

－

－

－

－

－

(4,974)

(709)

(170)

(97)

(658)

120

614

143

12,331

572

506

110

FY2024 (As of March 31, 2024)(Millions of yen)Accounts receivableand lease investment
assetsLifetime expectedcredit losses
Balance at beginningof period
New financial assets
composed orpurchased
Transfer to lifetime
expected credit
lossesTransfer to credit
impaired financial
assetsTransfer to 12-month
expected credit
lossesFinancial assets
with recognitionsuspended during theperiodOthersBalance at end of
periodLoans receivable related to the sales financing business, and others
Stage 112-month expectedcredit losses

Stage 2Lifetime expectedcredit losses

Stage 3Credit impaired
financial assets

12,331

572

506

110

7,756

1,732

－

－

－

－

－

－

－

－

－

－

－

－

－

－

(5,551)(1,667)

(759)

(235)

1,867

910

885

442

16,404

1,548

632

318

― 66 ―

ii) Liquidity risk
With financing through corporate bonds and loans, Toyota Industries is exposed to liquidity risk that a payment cannot
be made on the due date because of a deterioration in financing and other conditions. In accordance with the treasury
policy, Toyota Industries prepares funding plans and secures liquidity with funds on hand and commitment lines.
Financial liabilities by remaining contract maturities consist of the following.
FY2023 (As of March 31, 2023)(Millions of yen)
Due after
Due after
Due after
Due within one year but two years three years
one yearwithin two
but within
but within
years
three years four years
Non-derivative financial
liabilities
Trade payables
and other payables
Corporate bonds andloans

Due after
four years
but within
five years

Due after
five years

Total

463,620

5

1

4

4

3

463,639552,009204,269

246,569

229,780

322,519

258,707

1,813,855

Lease liabilities

47,111

34,321

23,913

16,646

10,61815,293

147,903

Deposits payable

37,643

－

－

－

－

－

37,643

5,847

2,073

26

887

742

－

9,577

Derivative financial
liabilities
Derivative liabilities

FY2024 (As of March 31, 2024)(Millions of yen)
Due after
Due after
Due after
Due within one year but two years three years
one yearwithin two
but within
but within
years
three years four years
Non-derivative financial
liabilities
Trade payables
and other payables
Corporate bonds andloans

Due after
four years
but within
five years

Due after
five years

Total

474,352

35

0

1

－

5

474,394

468,122284,260

253,964

416,171

265,444

166,735

1,854,699

Lease liabilities

58,433

41,87633,40722,211

15,06623,500

194,495

Deposits payable

37,598

－

－

－

－

－

37,59815,093

42

2,305

1,179

－

－

18,621

Derivative financial
liabilities
Derivative liabilities― 67 ―

iii) Market risk(a) Foreign currency risk
Engaged in business globally, Toyota Industries conducts transactions in foreign currencies and is exposed to therisk that profit or loss, cash flow and others will be affected by exchange rate fluctuations. In accordance with its
treasury policy, in principle, Toyota Industries uses foreign currency forward contracts, foreign currency option
contracts and foreign currency swaps to hedge foreign currency risk for each currency for its monetary credits andliabilities denominated in foreign currencies.
Exposure to foreign currency risk consists of the following.

FY2023(As of March 31, 2023)

Net exposure

Thousands of U.S.
dollars
40,940

FY2024(As of March 31, 2024)

Thousands of euros
197,238

Thousands of U.S.
dollars
77,892Thousands of euros
113,517(Exchange rate sensitivity analysis)
For each fiscal year, the impacts on net profit or loss and equity when there is a 1% change in the exchange rateof the Japanese yen against the following currencies consist of the following. The analysis does not include theeffects of converting into yen financial instruments, assets and liabilities of foreign operations, revenue andexpenses which are denominated in functional currencies. Moreover, other variables are assumed to be constant.
(Millions of yen)
FY2023(As of March 31, 2023)

FY2024(As of March 31, 2024)

U.S. dollar

48

97

Euro

234

145

(b) Interest rate risk
Toyota Industries procures funds through borrowings from financial institutions and issuances of corporate bonds
and is exposed to interest rate risks associated with raising and managing funds. With regard to interest rate risks,
in principle, Toyota Industries hedges such risks by interest rate swaps, interest rate options and matching cash
flows of receivables and payables, among other methods.
As a result, the Company does not conduct an interest rate sensitivity analysis because interest rate fluctuations
have little effect on the interest payment of Toyota Industries, and exposure to interest rate risk is considered
immaterial for Toyota Industries.

― 68 ―

(c) Price fluctuation risk of equity financial instruments
Toyota Industries holds listed shares of companies with business relationships and is exposed to price fluctuation
risk of equity financial instruments. Toyota Industries constantly reviews the status of its holdings of these financial
instruments, taking into account relationships with and financial conditions of business partners.
Toyota Industries does not hold equity financial instruments for trading purposes and does not actively trade theseinvestments.
If Toyota Industries assumes a 1% decline in the prices of listed shares held by Toyota Industries on the fiscal years
ended March 31, 2023 and 2024, decreases in other comprehensive income (before adjusting tax effect) would havebeen 31,407 million yen and 56,167 million yen, respectively.
Liquidity discounts are an important unobservable input used to measure the fair value of unlisted shares and other
equity securities. A material increase (decrease) of these discounts will cause a material decrease (increase) in fairvalue.
(3) Fair value of financial instruments
The following three levels of inputs are used to measure fair value.
(Level 1)
The market prices of the same assets or liabilities in active markets (which continuously ensure sufficient trading
frequencies and transaction volumes) that Toyota Industries has access to as of the measurement date are used without
adjustments.
(Level 2)
This level includes the published prices of similar assets or liabilities in active markets; the published prices of the sameassets or liabilities in inactive markets; inputs other than the observable published prices of assets and liabilities; andinputs calculated or supported mainly by observable market data.
(Level 3)
Because data are available only from limited markets, Toyota Industries uses unobservable inputs which reflect the
judgment of Toyota Industries in the assumptions used by market participants to decide the prices of assets and liabilities.
Toyota Industries calculates inputs based on the best available information, including the data of Toyota Industries itself.
When using multiple inputs to measure fair value, the fair value level is determined based on the material input from thelowest level in the fair value hierarchy. Fair value is measured by the Accounting Department in accordance with theevaluation policy and procedures of Toyota Industries, using the evaluation model that can most appropriately reflect
individual characteristics, features and risks of financial instruments. Moreover, changes are continuously examined forimportant indicators which affect fluctuations of fair value.

― 69 ―

(i) Financial instruments measured at amortized cost
The carrying amount and fair values of financial instruments measured at amortized cost consist of the following.
FY2023 (As of March 31, 2023)(Millions of yen)
Carrying
amountFair value
Level 1

Level 2

Level 3

Total

Financial assets
Loans receivable and Loans
receivables related to thesales financing business

259,871－－

248,146

248,146

Lease investment assets

443,652－－

424,086

424,086

Corporate bonds

393,382－

391,856－

391,856

Long-term loans

1,015,019－

1,009,566－

1,009,566

Financial liabilities(Note)

Loans receivable, Loans receivable related to the sales financing business, corporate bonds and long-termloans include the balance to be repaid and redeemed within one year.

FY2024 (As of March 31, 2024)(Millions of yen)
Carrying
amountFair value
Level 1

Level 2

Level 3

Total

Financial assets
Loans receivable and Loans
receivable related to thesales financing business

354,185－－

376,830

376,830

Lease investment assets

559,666－－

541,597541,597

Corporate bonds

428,293－425,612－425,612Long-term loans

1,057,287－

1,050,726－

1,050,726

Financial liabilities(Note)

Loans receivable, Loans receivable related to the sales financing business, corporate bonds and long-termloans include the balance to be repaid and redeemed within one year.

Notes are omitted for short-term financial assets and short-term financial liabilities that are measured at amortized costbecause the fair value approximates the carrying amount.
The fair value of loans receivable and loans receivable related to the sales financing business is calculated with present
value obtained by discounting the total amount of principal and interest with the expected interest rate when newly
undertaking similar lending.
The fair value of lease investment assets is calculated with present value obtained by discounting the total amount of
future lease receivables with the expected interest rate when newly undertaking similar lease transactions.
The fair values of corporate bonds and long-term loans are calculated with present value obtained by discounting thetotal amount of future principal and interest with the expected interest rate when newly undertaking similar borrowings.

― 70 ―

(ii) Fair values of financial assets and liabilities continuously at fair value
The fair-value hierarchy of financial instruments measured at fair value consist of the following. Financial assets
measured at fair value through other comprehensive income include debt instruments, but they were immaterial.
Moreover, there is no transfer between different levels.
FY2023 (As of March 31, 2023)(Millions of yen)
Level 1

Level 2

Level 3

Total

Financial assets measured at fair value throughprofit or loss
Derivative assets－

31,432－

31,432

2,827

－

6,202

9,029

Financial assets measured at fair value throughother comprehensive income

3,141,363

835

149,346

3,291,545

Total

3,144,191

32,268

155,549

3,332,008

－

9,577

－

9,577

－

9,577

－

9,577

OthersFinancial liabilities measured at fair value throughprofit or loss
Derivative liabilities
Total

FY2024 (As of March 31, 2024)(Millions of yen)
Level 1

Level 2

Level 3

Total

Financial assets measured at fair value throughprofit or loss
Derivative assets－

36,812－36,812

3,743

－

6,475

10,219Financial assets measured at fair value throughother comprehensive income

5,617,499

785

155,7095,773,995

Total

5,621,243

37,598

162,185

5,821,027－

18,621－

18,621－

18,621－

18,621OthersFinancial liabilities measured at fair value throughprofit or loss
Derivative liabilities
Total― 71 ―

Derivatives are transactions for forward exchange contracts, foreign currency option contracts, interest rate swaps,
interest rate and currency swaps, and interest rate options.
Fair value of forward exchange contracts is calculated based on observable market data including forward exchange
rates. Data for the fair value of foreign currency option contracts, interest rate swaps, interest rate and currency swaps
and interest rate options are calculated by financial institutions based on observable market data.
Toyota Industries uses the modified book value method when measuring the fair value of unlisted shares and other equity
securities categorized as financial assets measured at fair value through other comprehensive income. The illiquidity
discount, which is an important unobservable input used to measure the fair value of unlisted shares, is calculated as
30%.
Changes in financial instruments classified as Level 3 consist of the following.
(Millions of yen)
FY2023(April 1, 2022 - March 31, 2023)

FY2024(April 1, 2023 - March 31, 2024)

Balance at beginning of period

138,115

155,549

Gains and losses included in othercomprehensive income

15,944

7,097

Purchase

1,578

653

(71)

(1,147)

Sales
OthersBalance at end of period(Note)(18)33

155,549

162,185

Gains and losses included in other comprehensive income are those for financial assets measured at fair value
through other comprehensive income as of the closing date. These gains and losses are included in "Netchanges in revaluation of FVTOCI financial assets" on the consolidated statement of comprehensive income.

― 72 ―

(4) Offsetting of financial assets and financial liabilities
Among derivative transactions of Toyota Industries, there are master netting agreements of similar agreements. Under
these agreements, if non-performance occurs between contracting parties of an agreement, receivables and payables ofbusiness partners will be settled in net amounts.
The following information pertains to the netting of financial assets and financial liabilities recognized against the samebusiness partners.
FY2023 (As of March 31, 2023)(Millions of yen)

Total financial
assetsAmount that
Financial assets
could be offset inon thethe future based
consolidated
on master netting
statement ofagreements andfinancial position,others (Includingnet
collateral)

Total offset

Net amountFinancial assets
Trade receivables
and other receivables

216,530

148,90767,622－

67,622Derivative assets

13,168－

13,1682,089

11,078229,698

148,907

80,7902,089

78,701

Total(Millions of yen)

Total financial
liabilities

Amount that
Financial
could be offset inliabilities on thethe future based
consolidated
on master netting
statement ofagreements andfinancial position,others (Includingnet
collateral)

Total offset

Net amountFinancial liabilities
Trade payables
and other payables

263,825

148,907

114,917－

114,917

Derivative liabilities

2,387

－

2,387

2,089

297

266,212

148,907

117,305

2,089

115,215

Total― 73 ―

FY2024 (As of March 31, 2024)(Millions of yen)

Total financial
assetsAmount that
Financial assets
could be offset inon thethe future based
consolidated
on master netting
statement ofagreements andfinancial position,others (Includingnet
collateral)

Total offset

Net amountFinancial assets
Trade receivables
and other receivables
Derivative assets
Total

236,757

138,141

98,616－

98,616

9,357

－

9,357

5,727

3,630

246,115138,141

107,973

5,727

102,246(Millions of yen)

Total financial
liabilities

Amount that
Financial
could be offset inliabilities on thethe future based
consolidated
on master netting
statement ofagreements andfinancial position,others (Includingnet
collateral)

Total offset

Net amountFinancial liabilities
Trade payables
and other payables

244,432

138,141

106,290－106,290

Derivative liabilities

9,340

－

9,340

5,727

3,613

253,772

138,141

115,630

5,727

109,903Total― 74 ―

(5) Derivative transactions and hedging activities
Toyota Industries has concluded derivative agreements with financial institutions to hedge changes in cash flows or fairvalue of financial assets and financial liabilities. Forward exchange contracts and currency options are used to hedge
foreign currency risks concerning trade receivables, trade payables and others denominated in foreign currencies.
Moreover, currency swaps, interest rate swaps, interest rate and currency swaps, and interest options are used to hedge
foreign currency risk and interest rate risk of borrowings, corporate bonds and lease investment assets. Toyota Industries
applies hedge accounting for items that meet hedge accounting requirements.
In the execution and management of hedge transactions, interest rate risk and foreign currency risk are hedged inaccordance with treasury policy. Moreover, the status of hedge transactions is regularly reported to the director in chargeof accounting and other responsible people.
Regarding foreign currency risk in operating activities, a certain amount of targeted risks is hedged, with the total amountof targeted risks set as the upper limit. However, among targeted risks, usance transactions are in principle fully covered.
Regarding the foreign currency risk of investing activities which require a resolution of the Board of Directors, the full amountis hedged in principle. For the foreign currency risk of other investing activities and financing activities, the full amount ishedged as necessary.
The effectiveness of hedging is evaluated by comparing the market fluctuations or the accumulated changes in cash flowsof hedged items and hedging instruments during the period from the start of hedging to the evaluation of the effectiveness
respectively. A high correlation has been observed between the two. Moreover, regarding hedges with prospective
ineffective portions, the ineffective amount is calculated using quantitative methods. Because the important conditions forhedging instruments and hedged items are consistent or closely consistent, the amount of ineffective portions is immaterial,and it has been omitted.
Toyota Industries sets an appropriate hedging ratio based on the volumes of hedged items and hedging instruments at thestart of hedge transactions, establishing a one-on-one relationship in principle. If the hedging relationship comes to bedeemed not effective but there is no change in the purpose of risk management, the hedging ratio established at the startof the hedging relationship is readjusted to make the relationship effective again. Moreover, if the purpose of risk
management is changed for the hedging relationship, application of hedge accounting is suspended.

― 75 ―

(i) Notional principals and average prices of hedging instruments
Notional principals and average prices of hedging instruments for which hedge accounting applied consist of the following.
FY2023 (As of March 31, 2023)

Notional principal
Risk

Hedge Instruments

Unit

Foreign currency forward contract
transactions

Foreigncurrency
riskOver one
Within year but Over five
one year within five years
years

Average
price
or
Average
rate

Total

Millionsof

BUY JPY / SELL USD

USD

99

－

－

99 JPY 130.38

BUY EUR / SELL USD

EUR

59

6

－

65 USDBUY SEK / SELL USD

USD

6

－

－

6 SEK 10.32

BUY USD / SELL EUR

EUR

38

24

－

63 USDBUY SEK / SELL EUR

EUR

56

－

－

56 SEK 11.11

BUY SEK / SELL GBP

GBP

64

－

－

64 SEK 12.48

BUY SEK / SELL AUD

AUD

25

－

－

25 SEKBUY USD / SELL SEK

USD

31

－

－

31 SEK 10.42

BUY EUR / SELL SEK

EUR

22

－

－

22 SEK 11.15

BUY JPY / SELL USD

USD

72

－

－

72 JPY 131.25

BUY JPY / SELL EUR

EUR

58

－

－

58 JPY 141.33

BUY JPY / SELL AUD

AUD

16

－

－

16 JPY 89.83

Pay JPY / Receive USD

USD

－

400

－

400 JPY 114.98

Pay USD / Receive JPY

JPY

－

8,169

－

8,169 JPY 110.70

Pay EUR / Receive USD

USD

－

100

－

USD

175

1,583

－

1,758

Pay USD Fix / Receive JPY Float

JPY

10,86010,860－21,720 JPY 108.60

Pay JPY Fix / Receive USD Float

USD

－

72

－

72 JPY 110.42

HKD

100

200

－

300

EUR

32

620

－

652

－

AUD

30

38

－

69

－

GBP

9

34

－

43

－

1.08

1.08

7.09

Currency option transactions
Cash flow
hedgesCurrency swap transactions

100 USD

1.00

Interest rate swap transactions
Pay Fix / Receive Float
Interest
rate risk－

Interest rate and currency swap
transactions

Interest options
Interest cap

%

3.00

Interest rate swap transactions
Fair value Interest
hedgesrate risk

Pay Fix / Receive Float― 76 ―

FY2024 (As of March 31, 2024)

Notional principal
Risk

Hedge Instruments

Unit

Foreign currency forward contract
transactions

Foreigncurrency
riskOver one
Within year but Over five
one year within five years
years

Average
price
or
Average
rate

Total

Millionsof

BUY JPY / SELL USD

USD

81

－

－

81 JPY 145.92

BUY EUR / SELL USD

EUR

36

－

－

36 USDBUY SEK / SELL USD

USD

5

－

－

5 SEK 10.10

BUY JPY / SELL EUR

EUR

175

－

－

175 JPY 159.25

BUY USD / SELL EUR

EUR

28

－

－

28 USDBUY SEK / SELL EUR

EUR

64

－

－

64 SEK 11.58

BUY SEK / SELL GBP

GBP

84

－

－

84 SEK 13.24

BUY JPY / SELL AUD

AUD

11

－

－

11 JPY 96.70

BUY SEK / SELL AUD

AUD

35

－

－

35 SEKBUY USD / SELL SEK

USD

17

－

－

17 SEK 10.56

BUY EUR / SELL SEK

EUR

5

－

－

5 SEK 11.18

BUY JPY / SELL USD

USD

104

－

－

104 JPY 144.89

BUY JPY / SELL EUR

EUR

72

－

－

72 JPY 158.68

BUY JPY / SELL AUD

AUD

20

－

－

20 JPY 96.38

Pay JPY / Receive USD

USD

710

400

－

1,110 JPY 133.91

Pay USD / Receive JPY

JPY

－

8,169

－

8,169 JPY 110.70

Pay EUR / Receive USD

USD

－

100

－

USD

308

1,439

－

1,747

Pay USD Fix / Receive JPY Float

JPY

10,860－－10,860 JPY 108.60

Pay JPY Fix / Receive USD Float

USD

30

42

－

72 JPY 110.42

HKD

200

－

－

200

EUR

30

731

－

762

－

AUD

25

－

－

25

－

GBP

9

7

－

16

－

1.10

1.09

6.97

Currency option transactions
Cash flow
hedgesCurrency swap transactions

100 USD

1.00

Interest rate swap transactions
Pay Fix / Receive Float
Interest
rate risk－

Interest rate and currency swap
transactions

Interest options
Interest cap

%

3.00

Interest rate swap transactions
Fair value Interest
hedgesrate risk

Pay Fix / Receive Float― 77 ―

(ii) Effects of hedge accounting on the consolidated statement of financial position
The carrying amounts of hedging instruments for which hedge accounting applied consist of the following.
FY2023 (As of March 31, 2023)(Millions of yen)
Risk

Hedge instruments

Carrying amount of hedging
instruments
AssetsForeign currency forward
contract transactions
Foreign
Currency option
currency risk transactions
Currency swap
transactions
Cash flow hedges
Interest rate swap
transactions
Interest rate Interest rate and currency
riskswap transactions
Interest option
transactions
Interest rate Interest rate swap
Fair value hedges
risktransactions
Total

Liabilities

Line items on the
consolidated statementof financial position
Other financial assets
and liabilities
Other financial assets
and liabilities
Other financial assets
and liabilities

1,321

1,284

40

132

3,402

1,708

12,579348

Other financial assets

1,850

4,544

Other financial assets
and liabilities

145－

Other financial assets

4,958

－

24,299

8,019

Other financial assets
and liabilities
Other financial assets
and liabilities

FY2024 (As of March 31, 2024)(Millions of yen)
Risk

Hedge instruments

Carrying amount of hedging
instruments
AssetsForeign currency forward
contract transactions
Foreign
Currency option
currency risk transactions
Currency swap
transactions
Cash flow hedges
Interest rate swap
transactions
Interest rate Interest rate and currency
riskswap transactions
Interest option
transactions
Interest rate Interest rate swap
Fair value hedges
risktransactions
Total― 78 ―

Liabilities

959

1,898

6

220

10,708

1,468

13,421

218

3,215

6,567

97

－

2,837

321

31,246

10,696

Line items on the
consolidated statementof financial position
Other financial assets
and liabilities
Other financial assets
and liabilities
Other financial assets
and liabilities
Other financial assets
and liabilities
Other financial assets
and liabilities
Other financial assets
Other financial assets
and liabilities
Other financial assets
and liabilities

The carrying amounts of surplus in cash flow hedges consist of the following.
(Millions of yen)
FY2023(As of March 31, 2023)
Surplus in cash flow hedges

FY2024(As of March 31, 2024)
6,269

5,851

The carrying amounts and accumulated amounts of fair value hedge adjustments on the hedged items classified asfair value hedges consist of the following.
FY2023 (As of March 31, 2023)(Millions of yen)
Carrying amount of hedged
items
AssetsLiabilities
Interest rate risk

130,138

Accumulated amount of fairvalue hedge adjustments
AssetsLiabilities(3,835)－－

Line items on theConsolidated Statement of
Financial Position
Trade receivables andother receivables

FY2024 (As of March 31, 2024)(Millions of yen)
Carrying amount of hedged
items
AssetsLiabilities
Interest rate risk

165,724

Accumulated amount of fairvalue hedge adjustments
AssetsLiabilities
(489)

－

－

Line items on theConsolidated Statement of
Financial Position
Trade receivables andother receivables(iii) Effects of hedge accounting on the consolidated statement of profit or loss and other comprehensive income (loss)
Profit (loss) from cash flow hedges consist of the following.
FY2023 (April 1, 2022 - March 31, 2023)(Millions of yen)
Changes in the value ofhedging instruments
recognized in othercomprehensive income

Amount transferred fromsurplus in cash flow
hedges to profit or loss

Foreign currency risk

(2,782)

2,424Interest rate risk

4,399

(1,109)Line items affected bytransfers in profit or loss
Net sales,
Financial income,Financial expenses
Cost of sales,
Financial income,Financial expenses

FY2024 (April 1, 2023 - March 31, 2024)(Millions of yen)
Changes in the value ofhedging instruments
recognized in othercomprehensive income

Amount transferred fromsurplus in cash flow
hedges to profit or loss

Foreign currency risk

6,616

1,980

Interest rate risk

(6,569)(2,446)― 79 ―

Line items affected bytransfers in profit or loss
Net sales,
Financial income,Financial expenses
Cost of sales,
Financial income,Financial expenses

30. Leases(1) As lessor
Toyota Industries leases machinery and vehicles.
Toyota Industries strives to reduce risks related to underlying assets through periodic monitoring of the usage status aswell as the accumulation of sales information in the used machinery and vehicle market.
(i) Finance Leases
Maturity analysis of lease payments receivable based on finance leases consists of the following.
(Millions of yen)
FY2023(As of March 31, 2023)

FY2024(As of March 31, 2024)

Within one year

150,114

186,803

Over one year but within two years

115,060

136,683

Over two years but within three years

78,734

100,721

Over three years but within four years

48,99468,073

Over four years but within five years

22,34535,474

Over five years

7,868

15,698

Total

423,117543,455

Elimination : Unearned finance income(33,861)(44,666)

Unguaranteed residual value (discounted)

54,39660,878Net investment in the lease443,652

559,666

Financial income on net investment in the lease for the fiscal year ended March 31, 2023 and 2024 amounted to 19,006
million yen and 25,980 million yen respectively, and are included in "Net Sales" on the consolidated statement of profit
or loss.
(ii) Operating leases
Maturity analysis of lease payments based on the non-cancellable operating lease contracts consists of the following.
(Millions of yen)
FY2023(As of March 31, 2023)

FY2024(As of March 31, 2024)

Within one year

83,720101,275

Over one year but within two years

53,16866,020Over two years but within three years

38,614

49,585

Over three years but within four years

26,11835,033

Over four years but within five years

16,292

22,343

Over five years

4,253

7,696

222,168

281,954

Total
Lease income from operating leases consists of the following.

(Millions of yen)
FY2023(April 1, 2022 - March 31, 2023)

FY2024(April 1, 2023 - March 31, 2024)

Lease income relating to variable lease
payments that do not depend on an index ora rateOthers

10,24013,724

155,057

177,073

Total

165,297

190,798― 80 ―

(2) As lessee
Toyota Industries leases buildings and structures, machinery and vehicles, and others.
For some lease agreements, there is a renewal option or a purchase option. Moreover, there are no restrictions imposedby lease agreements (e.g., restrictions on additional borrowings and additional leasing).
The carrying amount of right-of-use asset included in "Property, Plant and Equipment" or "Goodwill and Intangible Assets"consists of the following.
(Millions of yen)
Property, Plant and Equipment
Leases as
lessorOther than leases as lessor
Tools,
Buildings and Machinery
furniture andstructures and vehicles
fixtures
FY2023(As of March 31,2023)
FY2024(As of March 31,
2024)

Land

Goodwill andIntangible
Assets

Machineryand vehicles

Other
intangible
assetsTotal

44,04725,144552

5,247

56,355

113

131,461

57,75533,924478

5,570

72,141

148

170,019

Depreciation of right-of-use assets consists of the following.
(Millions of yen)
Property, Plant and Equipment
Leases as
lessorOther than leases as lessor
Tools,
Buildings and Machinery
furniture andstructures and vehicles
fixtures
FY2023(April 1, 2022 March 31, 2023)
FY2024(April 1, 2022 March 31, 2024)

Land

Goodwill andIntangible
Assets

Machineryand vehicles

Other
intangible
assetsTotal

13,04513,806235

296

10,36834

37,786

13,083

12,881

248

309

13,59650

40,170

Increase of right-of-use assets for the fiscal year ended March 31, 2023 and 2024 is 47,785 million yen and 67,716
million yen respectively.
Profit or loss and total cash outflow for leases as lessee consist of the following.
(Millions of yen)
FY2023(April 1, 2022 - March 31, 2023)

FY2024(April 1, 2023 - March 31, 2024)

Interest expenses for lease liabilities

2,228

3,349

Expenses for short-term leases

4,826

5,424

Income from sub-leasing right-of-use assets

74,25827,154

Total cash outflow for leases

53,58560,512― 81 ―

31. Changes in Liabilities arising from Financing Activities
Changes in the balances of liabilities arising from financing activities are as follows.
(Millions of yen)
Short-term
loans

Commercial
paperLong-term
loans

Corporatebonds

117,066

65,203763,941444,303132,735(16,851)

112,121224,094(61,721)(40,910)

－

－

－

－

47,706

Foreign currency translationdifference and others

9,916

3,280

26,983

10,801

1,401

Balance as of March 31, 2023

110,132

180,605

1,015,019

393,382

140,933(46,386)(62,884)(1,524)(6,712)(44,852)

－

－

－

－

55,887

Foreign currency translationdifference and others

13,901

25,317

43,792

41,622

28,085

Balance as of March 31, 2024

77,647143,038

1,057,287

428,293

180,053

Balance as of April 1, 2022
Changes from financing cash flows

Leaseliabilities

Non-cash changes
Increase through commencement of lease

Changes from financing cash flows
Non-cash changes
Increase through commencement of lease(Note)

The above amounts include the balance to be repaid and redeemed within one year.

― 82 ―

32. Related Party Transactions
The transactions between Toyota Industries and related parties and the outstanding receivables and payables consist of
the following.
(1) Transactions with related parties and outstanding receivables and payables
Toyota Industries has transactions with the following related parties.
For the conditions of transactions and determination policies with related parties, the Company offers prices based on
consideration of overall costs and market price of the products, and negotiates prices for each fiscal year.
(Millions of yen)
FY2023(April 1, 2022 - March 31, 2023)

FY2024(April 1, 2023 - March 31, 2024)

Sales of goods and provision of services

462,128

549,186

Purchase of parts and receipt of services

34,625

51,167

Toyota Motor Corporation and its subsidiaries(Note)

Toyota Motor Corporation has a significant influence on Toyota Industries.

The unsettled balance on the above transactions and its allowance for credit losses consist of the following.
(Millions of yen)
FY2023(As of March 31, 2023)

FY2024(As of March 31, 2024)

Toyota Motor Corporation and its subsidiaries
Trade receivables and other receivables

89,091

Allowance for doubtful accounts
Trade payables and other payables(Note)

88,847－－88,04398,708

Toyota Motor Corporation has a significant influence on Toyota Industries.

(2) Principal management personnel compensation
FY2023 (April 1, 2022 - March 31, 2023)(Millions of yen)
Total amount ofcompensation
Principal management personnel

400

Total compensation by type
Bonuses
Fixed Remuneration(Performance-linked(Basic Remuneration)
Remuneration)
334
65

FY2024 (April 1, 2023 - March 31, 2024)(Millions of yen)

Principal management personnel

Total compensation by type
Total amount ofBonuses
Fixed Remunerationcompensation(Performance-linked(Basic Remuneration)
Remuneration)
442
308
133

― 83 ―

33. Contingencies
FY2023 (April 1, 2022 - March 31, 2023)
As announced on May 21, 2021, due to the delay in obtaining the U.S. engine emissions certification for the engines
installed in some models of lift trucks sold in North America, the Company's subsidiary, Toyota Material Handling, Inc. inIndiana, United States had suspended production and shipments of impacted models. On May 17, 2022, the Company
has announced that it had obtained engine certification for its main models of small liquefied petroleum gas (LPG) lift
trucks and resumed shipments on May 12, 2022.
Subsequently, the Company confirmed the excess over the domestic (Japanese) emissions regulation values due to aging
degradation, and potential violation of regulations related to Japanese certification of emissions, of engines for lift trucks
for the Japanese market. As a result, on March 17, 2023, Toyota Industries suspended the shipment of three models (twodiesel engine models and one gasoline engine model) of lift trucks in Japan. Concurrently, the Company reported thismatter to the Japanese Ministry of Land, Infrastructure, Transport and Tourism (MLIT), the Japanese Ministry of theEnvironment, and the Japanese Ministry of Economy, Trade and Industry. Of these models for which shipments have beensuspended, the two diesel engine models and any lift trucks with these engines installed are subject to an administrative
action imposed by the MLIT on April 26, 2023, and the designation and certification of the said types of engines wererevoked.
The issue of the certification of engines for markets in North America and Japan is currently subject to ongoinginvestigation as well as discussion with relevant authorities. Currently, it is not possible to make a reasonable estimate of
the impact of the matter on the Company's consolidated financial statements, except for the amount of impact alreadyidentified.
FY2024 (April 1, 2023 - March 31, 2024)
As announced on May 21, 2021, due to the delay in obtaining the U.S. engine emissions certification for the engines
installed in some models of forklifts sold in North America, the Company's subsidiary Toyota Material Handling, Inc. inIndiana, United States had suspended production and shipments of such models. On May 17, 2022, the Company has
announced that it had obtained engine certification for its main models of small liquefied petroleum gas (LPG) forklifts andresumed shipments on May 12, 2022.
Subsequently, the Company confirmed the excess over the domestic (Japanese) emissions regulation values due to aging
degradation, and potential violation of regulations related to Japanese certification of emissions, from engines for forklifts
within the Japanese market. On March 17, 2023, Toyota Industries decided to suspend the shipping in Japan of forklifts
equipped with two models of diesel engines and one model of gasoline engines, a total of three models, and made areport to the Japanese Ministry of Land, Infrastructure, Transport and Tourism (MLIT), the Japanese Ministry of theEnvironment, and the Japanese Ministry of Economy, Trade and Industry. Of these models for which shipments have beensuspended, the two diesel engine models and any folklifts with these engines installed were subject to an administrative
action imposed by the MLIT on April 26, 2023, and the designation and certification of the said types of engines wererevoked.
On January 29, 2024, the Company received the results of the domestic engine certification by a Special Investigation
Committee made up of outside experts and made report to MLIT and other relevant ministries, of the content of suchinvestigation and of the initiatives the Company is promoting to prevent recurrence. It was newly discovered in thisinvestigation that there were violation of domestic laws and regulations in domestic certification relating to emissions
performance involving six models of engines for forklifts (of which, five were old types) and one engine for construction
machinery (old type), as well as violations of laws and regulations in the output test of three models of engines forautomobiles. In addition, regarding one current model of engine for construction machinery shipping of which wassuspended, it was learned that emission regulation values had been exceeded. One model of engine for forklifts for theJapanese market that have been under a suspension of shipping since March 17, 2023, shipping has been stopped as ofJanuary 29, 2024, for one model of engines for forklifts for the Japanese market, forklifts in which said engines were
installed and three models of diesel engines for automobiles which in this investigation were newly found to involve
violations of domestic laws and regulations.

― 84 ―

After that, on February 22, 2024, the Company received correction order from MLIT urging to make fundamental changes
to our system to prevent misconduct from occurring. On March 5, 2024, MLIT notified the Company of its decision to
impose administrative sanction of revoking the Type Approval for two models of engines forklifts and one model of engines
for construction machinery. On February 27, 2024, MLIT announced that three models of automobile diesel enginescomply with the domestic standards, and it has lifted its instruction to suspend shipments of subject engine models, andthe Company resumed production and shipment of diesel engines for automobiles for the Japanese market from March
4, 2024. On March 22, 2024, the Company considered the recommendations provided by the Special Investigation
Committee and summarized the fundamental preventive measures and reported to MLIT.
The issue of the certification of engines for markets in North America and Japan is currently subject to ongoinginvestigation as well as discussion with relevant parties. Currently, it is not possible to make a reasonable estimate of the
impact of the matter on the Company's consolidated financial statements, except for the amount of impact alreadyidentified.
34. Commitments
Regarding the acquisition of property, plant and equipment, important capital expenditures (commitments) which arecontracted but not yet recognized on the consolidated financial statements are 52,386 million yen and 84,986 million yen
as of the end of the fiscal year ended March 31, 2023 and the end of the fiscal year ended March 31, 2024, respectively.

― 85 ―

35. Major Consolidated Subsidiaries
The Company's major subsidiaries are listed below. There are no subsidiaries of individual significance for which theCompany has non-controlling interests during the fiscal years ended March 31, 2023 and 2024.

Company Name

Location

Principal Business

Percentage of Voting
Rights of The Company(%)

Tokyu Co., Ltd.

Oguchi-cho,Niwa-gun, Aichi

Automobile

100.00Tokaiseiki Co., Ltd.

Iwata-shi, Shizuoka

Automobile

100.00IZUMI MACHINE MFG. CO., LTD.

Obu-shi, Aichi

Automobile

100.00TOYOTA L&F Tokyo Co., Ltd.

Shinagawa-ku, Tokyo

Materials Handling
Equipment

100.00

Taikoh Transportation Co., Ltd.

Kariya-shi, Aichi

Others

54.04

Aichi Corporation

Ageo-shi, Saitama

Toyota Material Handling Manufacturing
France S.A.S

Ancenis, FranceMichigan Automotive Compressor Inc.

Michigan, U.S.A.

Toyota Industries Europe AB

Mjölby, Sweden

Toyota Material Handling Europe AB

Mjölby, Sweden

Toyota Industries North America, Inc.

Indiana, U.S.A.

Others100.00Toyota Material Handling, Inc.

Indiana, U.S.A.

Materials Handling
Equipment

100.00TD Deutsche Klimakompressor GmbH

Sachsen, Germany

Automobile

65.00

Toyota Material Handling Australia Pty
LimitedNew South Wales,
Australia

Materials Handling
Equipment

100.00

TD Automotive Compressor Georgia, LLC

Georgia, U.S.A.

Automobile

77.40

Uster Technologies AG

Zurich, Switzerland

Textile Machinery

100.00Industrial Components and Attachments, Inc.

Oregon, U.S.A.

Cascade Corporation

Oregon, U.S.A.

Toyota Industry (Kunshan) Co., Ltd.

Jiangsu, China

Automobile

63.40

Toyota Industries Commercial Finance, Inc.

Texas, U.S.A.

Materials Handling
Equipment

100.00Shandong, China

Automobile

50.10

Jiangsu, China

Automobile

78.80

P.T. TD Automotive Compressor Indonesia

West Java, Indonesia

Automobile

50.10

Bastian Solutions LLC

Indiana, U.S.A.

Vanderlande Industries Holding B.V.

North Brabant,
Netherlands

Materials Handling
Equipment
Materials Handling
Equipment

Toyota Industries Engine India Pvt Ltd.

Karnataka, India

Automobile

98.80

Toyota Industries Electric Systems North
America, Inc.

Michigan, U.S.A.

Automobile

100.00

Yantai Shougang TD AutomotiveCompressor Co., Ltd.
TD Automotive Compressor Kunshan Co.,Ltd.

― 86 ―

Materials Handling
Equipment
Materials Handling
Equipment
Automobile
Materials Handling
Equipment
Materials Handling
Equipment

Materials Handling
Equipment
Materials Handling
Equipment

54.40
100.0060.00
100.00100.00100.00100.00100.00100.0036. Subsequent Events
The Company announced that a resolution was adopted at a meeting of the Board of Directors held on May 10, 2024 torepurchase shares of its common stock pursuant to Article 156 of the Companies Act as applied pursuant to Article 165,
Paragraph 3 of said Act as follows. In addition, at the Board of Directors' meeting held on June 6, 2024, as stated below,
the Company resolved to conduct a tender offer for its shares (the "Tender Offer") as a specific method of repurchasing
its shares pursuant to the Company's articles of incorporation and Article 156, Paragraph 1 of the Companies Act asapplied pursuant to Article 165, Paragraph 3 of said Act.
The Tender Offer was completed on July 4, 2024. Upon completion of the Tender Offer, the Company plans to acquire its
common stock through open-market purchases on the Tokyo Stock Exchange from August 1, 2024 to May 12, 2025 forup to 7,490,677 shares obtained by deducting the number of the Company's common shares acquired through the Tender
Offer (2,509,323 shares) from the total number of shares to be acquired in the repurchase of Company shares (10 million
shares) pursuant to the resolution adopted at a meeting of the Board of Directors held on May 10, 2024.
(1) Reason for the acquisition of treasury stock
The purpose of the Stock Repurchase is to improve capital efficiency, to return profits to shareholders, and to enable
flexible and agile implementation of capital policies in response to changes in the business environment.
(2) Details of the resolution passed at the meeting of the Board of Directors held on May 10, 2024
(i) Type of shares to be purchased: Common stock(ii) Total number of shares to be purchased: Up to 10,000,000 shares(3.22% of total number of issued shares (excluding treasury stock))(iii) Total cost of the purchase: Up to 180,000 million yen(iv) Repurchase period: From May 13, 2024 to May 12, 2025
Note: Some or all of the repurchase may not take place depending on market trends.
(3) Overview of the Tender Offer(i) Number of Share Certificates Planned for Purchased: 3,000,000 shares(ii) Publication date for commencing the Tender Offer: June 7, 2024(iii) Tender Offer Period: June 7, 2024 to July 4, 2024(iv) Tender Offer Price: 12,830 yen per share of common stock(v) Commencement Date of Settlement: July 29, 2024
(4) Results of Tender Offer(i) Planned Number of Shares Certificates to be Purchased: 3,000,000 shares(ii) Planned Number of Excess Share Certificates: ‐shares(iii) Number of Share Certificates Tendered: 2,509,323 shares(iv) Number of Share Certificates Purchased: 2,509,323 shares― 87 ―

II. [Other]
Quarterly information in the fiscal year ended March 31, 2024
(Cumulative period)
Net sales (Millions of yen)
Profit before income taxes(Millions of yen)
Profit attributable to owners of theparent (Millions of yen)
Earnings per share (Yen)(Accounting period)
Quarterly earnings per share (Yen)First quarter

Second quarter

Third quarter

Full year

889,455

1,837,423

2,827,567

3,833,205

111,609180,532

302,259

309,190

86,978138,808

230,801

228,778

280.14447.08743.37736.86First quarter

Second quarter

280.14― 88 ―

166.94

Third quarter
296.30Fourth quarter(6.52)

Independent Auditor's Report
To the Board of Directors of Toyota Industries Corporation
OpinionWe have audited the consolidated financial statements of Toyota Industries Corporation and its subsidiaries (the Group),
which comprise the consolidated statement of financial position as at March 31, 2024, and the consolidated statement ofincome, consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated
statement of cash flows for the year then ended, and notes to the consolidated financial statements.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated
financial position of the Group as at March 31, 2024, and its consolidated financial performance and its consolidated cash
flows for the year then ended in accordance with International Financial Reporting Standards.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities under thosestandards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements
section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our
audit of the consolidated financial statements in Japan, and we have fulfilled our other ethical responsibilities in accordancewith these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of theconsolidated financial statements of the current period. These matters were addressed in the context of our audit of theconsolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion
on these matters.
1. Valuation of goodwill and intangible assets with indefinite useful lives
Key audit matter description

How our audit addressed the key audit matter

The Group develops energy-efficient electric lift trucks,
next-generation models of lift trucks, automation
technology for materials handling equipment andmaterials handling systems to provide logistics solutionsin its Materials Handling Equipment Business. In orderto further strengthen the business, the Group acquired
Vanderlande Group (Vanderlande), a global logistics
solutions provider, and Bastian Group (Bastian), a
leading logistics system integrator in North America,
during the year ended March 31, 2018, and viastore
Group (viastore), a German logistics solutions provider,during the year ended March 31, 2023. As a result, theGroup recorded goodwill of 81,017 million yen andintangible assets with indefinite useful lives of 29,546
million yen arising from the acquisition of Vanderlande,
goodwill of 20,407 million yen arising from theacquisition of Bastian and goodwill of 27,277 million yen
arising from the acquisition of viastore as of March 31,

We performed the following procedures over the impairment
assessment for the goodwill and intangible assets withindefinite useful lives:· Assessed the appropriateness of cash-generating units
identified by management, considering the lowest level usedby the Group for internal management purposes.
· Performed the following procedures over the five-yearbusiness plans approved by management for the Materials
Handling Equipment CGU and the Vanderlande CGU:
- Compared the business plans used in the prior-year
impairment assessment with the actual results.
- Obtained an understanding of the production and sales
strategies according to local market conditions based on
customer location as well as the capital expenditure plans
and assessed whether the business plans were consistent
with the understanding and the historical trends in net sales
and profit.
· Performed the following procedures over the growth rate

PricewaterhouseCoopers Japan LLC
JR Central Towers, 38th Floor, 1-1-4 Meieki, Nakamura-ku, Nagoya-shi, Aichi 450-6038, Japan
Tel: +81 (52) 588 3951, Fax: +81 (52) 588 3952, www.pwc.com/jp/assurance

2024 (Note 10 “Goodwill and Intangible Assets ”).
Goodwill as a result of the Vanderlande, Bastian andviastore acquisitions is allocated to the Materials
Handling Equipment Business, a cash-generating unit,
and the intangible assets with indefinite useful lives ofVanderlande are allocated to Vanderlande, a cashgenerating unit. Net sales for Materials Handling
Equipment segment is 2,589,626 million yen andsegment profit is 165,616 million yen for the year ended
March 31, 2024 (Note 4 “Segment Information”).
The Group performs an annual impairment test for
goodwill and intangible assets with indefinite useful
lives, and more frequently if there are indicators of
impairment. In the impairment test, the recoverable
amount of a cash-generating unit is determined basedon value in use. The Group calculates the value in use
as the present value of the future cash flows expected
to be derived from the Materials Handling Equipment
CGU and the Vanderlande CGU principally based on thefive-year business plan approved by management. An
assumed increasing growth rate is used to extrapolate
cash flows beyond the five-year period. The businessplan is prepared based on production and sales
strategies including the launch of new products
according to local market conditions based on customer
location as well as capital expenditure plans. The
increasing growth rate used for cash flows beyond thefive-year period is determined with reference to the
expected long-term growth rate of markets to which theMaterials Handling Equipment CGU and the
Vanderlande CGU belong. The discount rate isdetermined based on the weighted average cost ofcapital (pre-tax) of the Materials Handling Equipment
CGU and the Vanderlande CGU. The Group concludes
that it is highly unlikely that these assets will besignificantly impaired even if these assumptions change
within a reasonable and predictable range (Note 10“Goodwill and Intangible Assets”).
The goodwill and intangible assets with indefinite useful
lives are material to the consolidated financial
statements. In addition, the calculation of value in use inimpairment testing uses assumptions such as estimatesof future cash flows based on the five-year businessplan, growth rates, and discount rates, all of which
involve management's subjective judgement. Therefore,
we considered the audit of the impairment assessment
for goodwill and intangible assets with indefinite useful
lives for these CGUs to be a key audit matter.

used to extrapolate cash flows beyond the five-year period:- Assessed whether the growth rate was consistent with thehistorical growth rate.
- Assessed whether the growth rate was reasonable
compared with data of the expected long-term growth rate of
the market which was provided by a third party independent
from the Group.
· Performed the following procedures over the discount rate:- Assessed whether the discount rate was reasonable andrecalculated the underlying analysis supporting the discountrate.
- Assessed whether the market data used to determine thediscount rate was consistent with the data provided by apricing vendor independent from the Group.
- Involved valuation specialists to perform independent
recalculations of the discount rate and compared thecalculation with the discount rate determined by the
management.

2. Valuation of provision related to other domestic certification due to the suspension of shipment
Key audit matter description

How our audit addressed the key audit matter

The Group recorded provisions of 85,890 million yen undercurrent liabilities in the consolidated statement of financial
position as of March 31, 2024. This includes a provision
related to other domestic certification due to thesuspension of shipment of 49,984 million yen resulting fromviolation of regulations related to certification of lift trucks
engines for the domestic market announced on March 17,2023, and the investigation results for domestic certification

We performed the following procedures over theassessment of provision related to other domestic
certification due to the suspension of shipment:- In order to evaluate the adequacy of management's
judgement on the criteria for provision recognition,
examined and evaluated documents about thecompensation to customers of automotive and industrial
vehicle engines and domestic lift trucks to determine

of engines announced on January 29, 2024 (Note 16“Provisions”).
The Group recognizes the provision related to otherdomestic certification due to the suspension of shipment
based on the estimated amount of costs arising from thesuspension of shipment of lift trucks and engines due todomestic certifications issues, including customer
compensation for automotive and industrial vehicle
engines, costs of customer services for domestic lift trucks,
and compensation to suppliers. These costs are estimatedbased on the cost per month (Note 16 “Provisions”).
The provision related to other domestic certification due tothe suspension of shipment is material to the consolidated
financial statements. In addition, the investigation resultsfor domestic certification of engines announced on January
29, 2024 are considered a significant event that occurred
during the current year that has a material impact on the
consolidated financial statements or the audit. Moreover,estimating provisions involves management's subjective
judgement. Therefore, we considered the assessment ofprovision related to other domestic certification due to thesuspension of shipment to be a key audit matter.

whether it would create a valid expectation that obligations
to compensate those customers would be fulfilled, which isone of the provision recognition criteria.
- Examined approvals for the compensation to customersof automotive and industrial vehicle engines and domestic
lift trucks, and made inquiries to the sales-related
departments to examine whether the management made areasonable estimate of the cost of the compensation tocustomers of automotive and industrial vehicle engines andthe customer services for domestic lift trucks.
- Examined the estimated amount of compensation to thecustomers at the end of the previous fiscal year and theactual amounts retrospectively to examine the uncertaintyof accounting estimates.
- In order to evaluate the adequacy of management's
judgement on the criteria for provision recognition,
examined notifications sent to suppliers about thecompensation to determine whether it would create a valid
expectation that obligations to compensate the suppliers
would be fulfilled, which is one of the provision recognition
criteria.
- Examined approvals for compensation to suppliers andmade inquiries of the procurement department to examine
whether management made a reasonable estimate of theamount required for compensation.
- Examined the estimated amount of compensation to the
suppliers at the end of the previous fiscal year and theactual amounts to retrospectively examine the uncertaintyof accounting estimates.

Other Information
The other information comprises the information included in the Annual Financial report, but does not include theconsolidated financial statements and our auditor's report thereon. Management is responsible for the other information. In
addition, those charged with governance are responsible for overseeing the Group's reporting process of the otherinformation.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any formof assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and,in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or
our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, weare required to report that fact.
We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordancewith International Financial Reporting Standards, and for such internal control as management determines is necessary toenable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud
or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue
as a going concern and disclosing, as applicable, matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative
but to do so.
Those charged with governance are responsible for overseeing the Group's financial reporting process.

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are freefrom material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance withauditing standards generally accepted in Japan will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise professional judgment
and maintain professional skepticism throughout the audit. We also:・ Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations,or the override of internal control.
・ Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances, while the purpose of the consolidated financial statement audit is not to express an opinion on theeffectiveness of the Group's internal control.
・ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
・ Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt
on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if suchdisclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going
concern.
・ Evaluate whether the presentation and disclosures of the consolidated financial statements are in accordance with
International Financial Reporting Standards, the overall presentation, structure and content of the consolidated financial
statements, including the disclosures, and whether the consolidated financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
・ Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within
the Group to express an opinion on the consolidated financial statements. We are responsible for the direction,
supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of theaudit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with those charged with governance, we determine those matters that were of mostsignificance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters.
We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter orwhen, in extremely rare circumstances, we determine that a matter should not be communicated in our report because theadverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.

FEE-RELATED INFORMATION
In connection with our audit of the consolidated financial statements for the year ended March 31, 2024, the amounts of fees
for the audit and the other services charged to Toyota Industries Corporation and its controlled entities byPricewaterhouseCoopers Japan LLC and other PwC Network firms are ¥201 million and ¥2,451 million, respectively.
Interest required to be disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Group which is required to be disclosed
pursuant to the provisions of the Certified Public Accountants Act of Japan.

Masahide Kobayashi
Designated Engagement Partner
Certified Public Accountant
August 1, 2024

Junji Ichihara
Designated Engagement Partner
Certified Public Accountant

TOYOTA INDUSTRIES CORPORATION
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