Tadashi Ishikawa

Tetsuro Toyoda

ChairmanPresident

Message from the Chairman and President
Business Results for Fiscal 2010

systematically and quickly implementing emergency profit

Although various countries’ economic stimulus measures

improvement activities.

led to a recovery trend in China and other Asian countries,
a gradual upswing in the U.S. economy and bottoming out

sales of ¥1,377.7 billion, a decrease of ¥206.5 billion, dueof European economies, the global economy in general

in a large part to the sluggish materials handling equipment

remained sluggish throughout the fiscal year ended March 31,market. On the other hand, operating income was ¥22.0

2010 (fiscal 2010). In Japan, the economy steadily trended

billion, a turnaround from an operating loss recorded in thetoward recovery, but still remained weak overall due mainly toprevious fiscal year, while ordinary income increased ¥17.4

declining consumer prices and a high unemployment rate.

billion to ¥31.7 billion. However, Toyota Industries recorded

In response to a rapidly deteriorating operatingIn fiscal 2010, Toyota Industries posted consolidated net

a net loss of ¥26.2 billion as a result of posting a loss

environment since autumn 2008, the Toyota Industries

arising from business restructuring of the Materials HandlingGroup worked to thoroughly reduce fixed costs byEquipment Segment as an extraordinary loss.

Toyota Industries Report 2010

Initiatives for the Coming Years

develop products and services matched to respective local

We expect the global economy to continue on a gradualneeds as well as create optimum value chains for each market.

recovery path in fiscal 2011, however, uncertainties remain
with regard to persistent concerns over deteriorating financial
and employment situations, the impact of the discontinuation

Strategies for Respective Businessesof car replacement incentive measures and rising prices of

Anticipating a prolonged stagnation in the global materials

raw materials such as iron and crude oil. As a result, thehandling equipment market, we have pursued structuraloperating environment is expected to remain challenging.

downsizing at Materials Handling Equipment Segment sites inAmid this difficult business climate, the Toyota Industries

and outside Japan so that we can secure profits even whenGroup will band together to tackle various management

annual sales remain at 100,000 units, which is approximately

issues to establish a stronger business foundation and further

50% below previous peak levels. In the meantime, signs of anraise corporate value.

upswing started to become evident in the materials handling

We believe the most urgent task at hand is to continue

equipment market, which for a time seemed dim, evenreforming the business and cost structures to strengthen thethough differences remain among regions. By spotting any

earnings foundation. Without loosening the reins, the entire

new developments, we will leverage our strengths through a

Toyota Industries Group is determined to continue to pushfull lineup of TOYOTA-, BT-, RAYMOND- and CESAB-brandemergency profit improvement activities while launchingproducts and proactively engage in sales activities to improveforward-looking structural reforms. Specifically, we will maintainbusiness performance.

the streamlined structure through the reduction of fixed costs

At the same time, we will aim for product planning closelyand enhancement of our competitiveness by strengtheningaligned with local customer needs and further accelerate thecost planning activities for each product category.

development of key components to ensure stronger productAmid an uncertain market environment, signs of recovery

competitiveness. Based on a hybrid lift truck introduced toare becoming visible in certain sectors. By quickly identifying

the market in December 2009, we will expand our hybrid

such changes and turning them into business opportunities,

lineup to midsize and larger models in our efforts to be thewe will implement various measures geared toward sales

frontrunner in environmental technologies as well.

expansion.
In the medium to long term, our foremost focus remains

In the respective businesses of the Automobile Segment,
we will work to create factories and foundations resistanton quality. Addressing environmental and safety concerns as

to production volume fluctuations while maintaining

well as enhancing our international competitiveness will also

a streamlined production structure in order to secure

be equally imperative. Keeping these in mind, we will strive

profitability.

to develop products and cutting-edge technologies that areclosely aligned with customer perspectives.
Specific initiatives include refining element technologies

In emerging country markets, we will strive to enhancesales of car air-conditioning compressors in China, which
has now become the world’s largest market for automobiles.

that will contribute to electrification, lighter weights andSpecifically, we will expand our market share by targeting

energy savings based on 3Es (energy, environmental

higher-end models for which growth is anticipated in theprotection and ecological thinking). By employing these

China market and by leveraging our advanced technologies.

element technologies in new automobile and materials

In the area of environmental technologies, developing

handling equipment products, our mainstay businesses, wepower electronics products and electric compressors

aim for further business expansion.

continues to be a priority in responding to the rapidly growing

Concurrently, in emerging countries where economies are
expected to grow, we will accelerate our efforts to plan andhybrid vehicle market. By further enhancing the functionality
and lineup of electric compressors, we aim to expand sales

Toyota Industries Report 2010

Tetsuro Toyoda
President

to automakers in Europe and the United States in addition

to refine these technologies and contribute to reducing

to Toyota Motor Corporation and ensure we will be wellenvironmental loads.

positioned in the growing hybrid vehicle market. Moreover, in

the plug-in hybrid vehicle (PHV) and electric vehicle (EV) field,

Environmental Conservation

Toyota Industries is strengthening initiatives for future business

Preserving the global environment for future generations isexpansion. We will work to make the onboard charger fitted

now a universally important theme. As laid out in our Global

in Toyota’s Prius Plug-in Hybrid smaller and more efficient toEnvironmental Commitment, we believe that it is essential

ensure expanded sales. In addition, we intend to contributeto develop technologies that enable the compatibility ofto the establishment of a charging infrastructure that supports

environmental conservation and economic growth in order

greater use of PHVs and EVs by continuously improving theto achieve a sustainable society. As a manufacturer, we arecharging stand we introduced to the market in 2009 andtackling head-on environmental and energy issues such as

developing a system for comprehensively managing usage

reducing the emission of greenhouse gases. Specifically,

data of charging stations and EVs.

we are committed to developing environmentally soundIn addition to the accumulation of technologies related to

products and reducing environmental load in the area

the entire automobile, Toyota Industries possesses numerousof manufacturing, from the construction of plants andelement technologies that have the potential to contribute toestablishment of production lines to actual production. Setting

3E fields, including technologies and know-how cultivated ineven more ambitious targets, the entire Toyota Industries

the development of electric lift trucks. Based on collaborative

Group is determined to take a proactive approach toward

efforts among business divisions, we will work constantly

environmental conservation activities.

Toyota Industries Report 2010

Commitment to Quality

participant but also by the foundation rooted in teamwork

Quality is the lifeline of any manufacturer. Needless to say, it isand successful passing down of technical skills we havean extremely important matter for Toyota Industries as well.

accumulated to date.

We have always committed ourselves to comprehensive
quality assurance, with everybody involved in activities fromWe will put more efforts into developing human resources
who will enable our next leap forward.

day-to-day quality management to quality inspection by topmanagement. In the area of product development, we ensure

At a time when technologies and social structures are

quality by utilizing a design review system in which respective

changing at an unprecedented speed, we must workbusiness division heads thoroughly examine and confirm theto strengthen our management platform in terms of thelevel of quality at each principal stage, from product planningenvironment, quality, safety and compliance. Staying true toto customer satisfaction assessment, before productour Basic Philosophy and the Toyoda Precepts, in which thedevelopment proceeds to the next stage. Moreover, in March

spirit of founder Sakichi Toyoda is enshrined, we will continue

2010 we carried out comprehensive quality inspections toto commit ourselves to a Customer First philosophy andensure a structure that will never produce defects relating

respond to confidence from society in our efforts to sincerelyto safety. These inspections focused on whether we

fulfill our social responsibilities and achieve sustainable growth

respond quickly enough in handling defects and on clarifying

in harmony with society.

procedures and standards for dealing with defects. TheIn closing, we truly appreciate the loyal support of all ourresults revealed we were not overlooking any major quality

stakeholders, including shareholders, customers, businessissues.

partners, local communities and employees and their families,

Based on our Customer First philosophy, we will strive

and ask for their continued guidance and understanding.

to continually improve quality by building in quality withineach process at product planning, design, procurement,
production, quality assurance and service departments

July 2010

as well as promoting close cooperation among thesedepartments. Through these activities, we will continue toprovide products and services that customers can use withTadashi Ishikawa
Chairmanreassurance and thus enhance confidence from society.

Human Resources Development
To achieve sustainable growth amid a dramatically changing
business environment, companies must develop humanTetsuro Toyoda
President

resources and create an organization that can prevail against
fierce competition. We are committed to nurturing personnel
capable of learning, thinking and acting independently and tofostering a vibrant work climate that enables the capabilities
of employees and organizations to be utilized to the fullest.
An example of such achievements includes two of
our employees winning a gold medal in the “lathe” and“structural ironsmith” categories at the 47th National Skills
Competition held in October 2009. This accomplishment wasmade possible not only by the tremendous efforts of eachToyota Industries Report 2010