Toyota Industries Report 2020

Toyota Industries Report

2-1, Toyoda-cho, Kariya-shi, Aichi 448-8671, Japan

Telephone: +81-(0)566-22-2511 Facsimile: +81-(0)566-27-5650
https://www.toyota-industries.com/
Year ended March 31, 2020

This report is printed on FSC™-certified paper that contributes to forest conservation

with ink derived from vegetables.
Printed in Japan
Message from the Chairman and President

Firstly, we would like to extend our sincere appreciation To quickly respond to drastic changes in the
for your continued support of Toyota Industries business environment, we will strengthen risk
Corporation and the Toyota Industries Group. management and carry out thorough cost improvement
In fiscal 2020 (ended March 31, 2020), the global activities to transform ourselves into a more muscular
economy was solid overall despite such uncertainties as and resilient management platform. In addition, we will
the deceleration of the Chinese economy arising from strive to improve productivity in back-office operations
U.S.-China trade frictions as well as geopolitical risks. through work style reforms and reduced fixed costs.
However, during the few months leading to the fiscal Our businesses will become more competitive
year-end, it went on a dramatic downward spiral due and aim for further growth by promoting innovative
to the spread of COVID-19. Meanwhile, the Japanese technology and product development while also
economy deteriorated during the second half of fiscal proactively embracing digital technologies and open
2020. In addition to the factors mentioned above, the innovation. To support such business development, we
primary reasons for the downturn included anemic will continue our efforts to create an organization and
consumer spending that accompanied the consumption workplace environment that enables diverse human
tax hike and natural disasters. resources to fully demonstrate their abilities and develop
Net sales decreased in fiscal 2020 mainly as a result personnel who learn and think on their own and are
of declines in sales of materials handling equipment empowered to quickly take initiative.
and car air-conditioning compressors as well as the In other areas, Toyota Industries will create a
negative impact of exchange rate fluctuations. These workplace environment that places a top priority on
factors offset sales increases for the new RAV4 and safety; thoroughly enforce compliance, including
TNGA gasoline engines. In terms of overall profit, observance of laws and regulations; and proactively
despite sales efforts and cost reduction activities participate in social contribution activities. By carrying
throughout the Toyota Industries Group, we recorded out these initiatives, we aim to earn the overall trust
a decrease in profits due mainly to the impacts of the of society and grow harmoniously with society. With
COVID-19 pandemic, Typhoon Hagibis and exchange regard to protection of the global environment, we will
rate fluctuations. undertake Group-wide initiatives in seeking to realize “a
Although both net sales and profits fell slightly short zero CO2 emissions society in 2050.”
of initial plans, Toyota Industries increased the year- Through these initiatives, we aim for sustainable
end cash dividend by ¥5.0 over the previous fiscal growth of each business and strive to support industries
year to ¥80.0 as planned. Including the interim cash and social foundations around the world and contribute
dividend, we paid annual cash dividends per share of to making the earth a better place to live, enriched
¥160.0. Given the impact of the COVID-19 pandemic lifestyles and a compassionate society as described in
and in consideration of the needs of our shareholders, Toyota Industries’ Vision 2030.
we made an exception this year and decided to pay In closing, we would like to sincerely ask for your
the year-end cash dividend early. This was based continued understanding and support.
on a resolution by the Board of Directors instead of
basing our decision on the resolution of the General July 2020
Shareholders’ Meetings as we usually do.
With regard to the future economic outlook,
uncertainties continue to abound including concerns
over the prolonged spread of COVID-19, U.S.-China
trade frictions and geopolitical risks. As such, the
environment surrounding Toyota Industries’ main Tetsuro Toyoda
businesses, namely Automobile and Materials Handling Chairman
Equipment, preclude optimism.
Under these circumstances, Toyota Industries is
further strengthening its business foundation and is
addressing key management issues to raise corporate Akira Onishi
value by leveraging the Group’s collective strengths. President

Chairman Tetsuro Toyoda (left)/President Akira Onishi (right)

1
 Company Introduction Strategies and Businesses Promotion of ESG Initiatives Corporate Information

Realizing Toyota Industries’ Vision Realizing Toyota Industries’ Vision

based on Our Basic Philosophy

based on Our Basic Philosophy

Based on our basic philosophy, we aim to contribute to making the earth a better place to live, enrich lifestyles and
promote a compassionate society by making the most of the core assets and strengths we have accumulated to
date in promoting our diverse businesses such as materials handling equipment, logistics solutions, vehicle, engine,
car air-conditioning compressor, car electronics and textile machinery and by engaging in value creation.

Meeting Social Demands

Toyoda Precepts Basic Philosophy CSR Materiality
based on Vision 2030

Identifying Our Materiality in Connection

Toyoda Precepts (Corporate Creed) Basic Philosophy Vision 2030
with SDGs * Please see page 55.

Always be faithful to your duties, thereby contributing [Respect for the Law] Contribute to making the earth a better place As stated in Vision 2030, toward the realization of a sustainable society,
to the Company and to the overall good. Toyota Industries is determined to comply to live, enrich lifestyles, and promote a contribute to “make the earth a better place to live,
with the letter and spirit of the law, in compassionate society by supporting industrial enrich lifestyles, and promote a compassionate society”
Always be studious and creative, striving to stay
Japan and overseas, and to be fair and and social infrastructure around the world
ahead of the times.
transparent in all its dealings. through the continuous supply of products/
Always be practical and avoid frivolousness. services that anticipate customers’ needs.
Always strive to build a homelike atmosphere at work [Respect for Others]
that is warm and friendly. Toyota Industries is respectful of the place to li
ve, enrich lifestyles, and promote a
compa
CSR Materiality SDGs to Contribute
better ssion
rth a
people, culture, and traditions of each ke the ea ate s
ocie
Always have respect for God, and remember to be Ma
u str ia l and s o ci al inf ra s t r ucture arou
n
ty
region and country in which it operates. It po rt ind
Sup emissions ,” “relia b le/ s afe , com fortab
d the w
orld
grateful at all times. le” a ■ Mitigation of Global

Resolving Social Issues through Our Business

o nd “
also works to promote economic growth /zer sma
ean rt” Warming
“Cl
and prosperity in those regions and Create new values by being studious and creative
■ Contribution to
countries.
Materials Circular Economy
Handling
Automobile Equipment /
[Respect for the Natural Environment] Logistics
Take on challenges and enter into new businesses
Through its corporate activities, Toyota Textile Machinery ■ Creation of Innovative
Industries works to contribute to regional TPS
Team
Manufacturing foundation strength
Link to details on Values
Vision 2030.
living conditions and social prosperity and Toyoda Precepts
also strives to offer products and services
that are clean, safe, and of high quality.
■ Products and Services
Which Contribute to Safety,
[Respect for Customers] Social Demands Security and Comfort
Toyota Industries conducts intensive
■ Mutual Prosperity through
product research and forward-looking
Partnerships with Local
development activities to create new value
SDGs Communities
for its customers.

Our Business Operations

Foundation Supporting
We encapsulated the spirit of founder Sakichi Toyoda in the Toyoda
[Respect for Employees]
Precepts, which serve as Toyota Industries’ corporate creed and upon ■ Safe and Healthy Work Environments
which our Basic Philosophy is based. Toyota Industries nurtures the
inventiveness and other abilities of its ■ Leveraging Diversity and Inclusion
employees. It seeks to create a climate of ■ Sustainable Procurement
cooperation, so that employees and the
■ Compliance and Risk Management
Company can realize their full potential.

Global social issues adopted at the United Resolving social issues through corporate activities
Nations summit in 2015

4
2 Toyota Industries Report 2020
豊田自動織機レポート2020 5
3
 Company Introduction Strategies and Businesses Promotion of ESG Initiatives Corporate Information

Toyota Industries’ 3 Businesses and Toyota Industries’ 3 Businesses and

Their Characteristics

Their Characteristics
Using our resources and strengths as the foundation, we strive for growth in the Materials Handling Equipment,
Automobile and Textile Machinery businesses. At the same time, we aim to enhance our competitiveness by
leveraging synergies among these businesses.

Segment Business Business activities Roles of each business Main products and systems Performance
Link to product details.

Toyota Industries plans, develops, produces, sells and provides after-

Materials Handling Equipment
Materials Handling Equipment

Internal-combustion
sales services for industrial vehicles centered around a full lineup of lift lift truck
Lift Truck

trucks (0.5- to 43-ton capacities). Lift trucks, which capture the top
Sales After-sales
global market share*, are delivered to customers around the world. In Development Production (for users) services Net Sales Operating Profit

addition to the sale of lift trucks, we strive to meet a variety of customer (¥ Billion) (¥ Billion)
1,500 120
needs through sales financing, after-sales services and proposals for Reach-type 1,200 100
logistics efficiencies. Electric lift truck electric lift truck Low lift truck Automated lift truck Aerial work platform 900
80
60
600
40
300 20
Toyota Industries works closely with subsidiaries Bastian Solutions 0
(FY) 18 19 20
0
(FY) 18 19 20
Solutions
Logistics

LLC and Vanderlande Industries Holding B.V. by leveraging each

Sales After-sales
company’s strengths to contribute to resolving customers’ logistics Development Production (for users) services Percentage of
Net Sales
issues through a combination of various logistics equipment and
systems. Automated storage Simple AGV Sorter High-speed storage Airport baggage 66.2%

and retrieval system (automatic guided vehicle) and picking system handling system

With its strengths as a leader in safety, the environment, quality, Automobile

Vehicle

cost and delivery among Toyota Group companies, the Vehicle Sales
After-sales
Development Production (for Toyota
Business plans, develops and produces the RAV4 for markets in services
Motor)
Net Sales Operating Profit
and outside Japan. RAV4 (¥ Billion) (¥ Billion)
600 30

400 20

200 10
In addition to automotive diesel engines produced under a structure
Engine

Sales
ranging from planning and development to production, we also Development Production (for Toyota
After-sales 0
(FY) 18 19 20
0
(FY) 18 19 20
services
produce gasoline engines and industrial engines. Motor)
Automobile

Percentage of
Diesel engine Gasoline engine Turbocharger Net Sales 28.3%

Toyota Industries’ car air-conditioning compressors are highly

acclaimed in terms of their reliability at high operating speeds and
Conditioning
Compressor

Sales
Car Air-

quiet operation in addition to such excellent environmental (for automakers After-sales

Development Production
performance features as compactness, light weight and fuel around services
the world)
efficiency. The Car Air-Conditioning Compressor Business captures Electric compressor Variable-displacement Fixed-displacement Oxygen-supplying air Hydrogen circulation pump Textile Machinery
the world-leading market share in unit sales*. type compressor type compressor compressor for fuel cell vehicles for fuel cell vehicles

Net Sales Operating Profit

Electronics

The Car Electronics Business plans, develops and produces Sales (¥ Billion) (¥ Billion)
(for automakers After-sales
Car

electronics products primarily for electrified vehicles such as hybrid Development Production
around services
80 8

vehicles. the world)

DC-DC
60 6

converter 4WD rear inverter On-board charger 40 4

20 2

0 0
(FY) 18 19 20 (FY) 18 19 20

We undertake fully integrated operations from planning, development

Machinery

Machinery

and production to sales and after-sales services for spinning Percentage of

Textile

2.8%
Net Sales
Textile

Sales After-sales
machines that spin twisted fiber bundles into yarn and weaving Development Production (for users) services
machines that weave spun yarn into fabrics. Our air-jet looms have
captured the world-leading market share in terms of unit sales*. Quality measurement instrument
Air-jet loom Ring spinning frame for fiber, yarn and fabric

* Survey by Toyota Industries Corporation

4 Toyota Industries Report 2020 5

 Company Introduction Strategies and Businesses Promotion of ESG Initiatives Corporate Information
Consolidated Financial and
Non-Financial Highlights

CONTENTS
Consolidated Financial and Non-Financial Highlights
Message from the Chairman and President Inside cover–1

Company Introduction Financial Information (FY2020)

Realizing Toyota Industries’ Vision based on Our Basic

Philosophy 2–3
Net Sales Operating Profit Investments in Tangible Assets
Toyota Industries’ 3 Businesses and Their Characteristics 4–5
Contents
Consolidated Financial and Non-Financial Highlights
6
7–9
¥ 2,171.3 billion ¥ 128.2 billion ¥ 106.0 billion
Consolidated Eleven-Year Summary 10–11
Editorial policy Share of Equity Attributable to
Depreciation Research and Development Expenses
In aiming to realize a deeper understanding of the Toyota Owners of the Parent

90.4 billion 90.5 billion 2,438.8 billion

Industries Group among a broad spectrum of stakeholders,
Strategies and Businesses
the Annual Report and Social and Environmental Report have
been combined into the Toyota Industries Report from the Top Message 12–17 ¥ ¥ ¥
fiscal year ended March 31, 2008.
In addition to the Toyota Industries Group’s management Special Features
policies, the report provides easy-to-understand information
1 Strengths of Our Materials Handling Equipment Business
regarding its business, corporate governance, social and 18–21
Aiming for Sustainable Growth
environmental activities over the past year as well as its future
direction. 2 Leveraging the Strengths of Diverse Businesses to Net Sales Operating Profit/Operating Profit Ratio Profit before Income Taxes
Period covered by the report Adapt to Changes and Seek Sustainable Growth 22–25
(¥ Billion) (¥ Billion) (%) (¥ Billion)
This report focuses on activities carried out in fiscal 2020 (April
1, 2019 to March 31, 2020), but also includes some Business Activities 2,500 150 10 250
7.4 8
6.1 5.9
information outside this period. 26–30 2,214.9 6
Materials Handling Equipment 2,171.3
120 147.4 209.8
Organizations covered in the report 2,000 2,003.9 134.6 128.2 200 202.2 196.2
Toyota Industries Corporation and its consolidated Automobile 31–36
subsidiaries 90
Reference guidelines Textile Machinery 37 1,500 150
• Global Reporting Initiative (GRI) Standard 60
• ISO 26000 1,000 100
• Japan’s Ministry of the Environment Environmental Promotion of ESG Initiatives 30
Accounting Guidelines (2005 Version)
• Japan’s Ministry of the Environment Environmental Corporate Governance 38–43 500 50
0
Reporting Guidelines (2018 Version) Corporate Governance Structure / Internal Control System / Compliance / (FY) 2018 2019 2020
• International Integrated Reporting Framework by
Information Security / Risk Management 0 Operating Profit Operating Profit Ratio (right) 0
International Integrated Reporting Council (IIRC)
(FY) 2018 2019 2020 Note: Operating profit in fiscal 2018 includes a one-time effect of ¥14.3 (FY) 2018 2019 2020
Relationship with Our Stakeholders billion arising from changes in retirement benefit plans.
Toyota Industries Report 2020 PDF
Relationship with Our Customers 44–45
Profit Investments in Tangible Assets Depreciation
This PDF file is linked to related Websites . 46
Relationship with Our Business Partners
(¥ Billion) (¥ Billion) (¥ Billion)
■ How to use this report
Relationship with Our Shareholders and Investors 47 200 120 100
Main products and systems Performance 115.4 113.7
90.4
Click on to related Link to product details.
Relationship with Our Associates 48–52 168.1 106.0
85.6
100
Websites. Materials Handling Equipment 152.7 80 77.7
Internal-combustion
53–54 150 145.8
lift truck
Relationship with Our Local Communities
es
80
* Requires Internet connection. Net Sales
s Operating Profit

(¥ Billion)
1,500
(¥ Billion)
120
Determining CSR Materiality 55 60
Reach-type 1,200 100 100
60
Special Feature on the Environment:
Electric lift truck electric lift truck Low lift truck Automated lift truck Aerial work platform 80
900
60
600
Cautionary Statement with Respect to Forward-Looking Statements 40
56–57 40
300 20
TMHMS’ Path toward Zero CO2 Emissions
40
0 0
This report contains projections and other forward-looking statements (FY) 18 19 20 (FY) 18 19 20
50
es
s
that involve risks and uncertainties. The use of the words “expect,” Percentage of Environmental Initiatives
“anticipate,” “estimate,” “forecast,” “plan” and similar expressions is
Net Sales
20
20
intended Simple
Automated storage
and retrieval system
to identify
AGV
such forward-looking
(automatic guided vehicle)
Sorter
andstatements.
High-speed storage
picking system Projections
Airport baggage
handling system and
66.2%
Sixth Environmental Action Plan 58–59
forward-looking statements are based on the current expectations and 0
estimates of the Toyota Industries Group regarding its plans, outlook, Vision for Environmental Activities 60 (FY) 2018 2019 2020
0 0
strategies and results for the future. All such projections and forward- (FY) 2018 2019 2020 (FY) 2018 2019 2020
Note: The figures for profit attributable to owners of the parent are presented.
es
looking statements are based on management’s assumptions and Automobile
Structure to Implement Environmental Management 60–61
s beliefs derived from the information available at the time of producing this Net Sales Operating Profit
report and are not guarantees of future performance. Toyota Industries Establishing a Low-Carbon Emission Society 61–62 Total Assets/Share of Equity Attributable to Owners of the Parent/
Research and Development Expenses Cash Dividends Per Share/Dividend Payout Ratio
RAV4 (¥ Billion) (¥ Billion)

undertakes no obligation to publicly update or revise any forward-looking 600 30

Ratio of Share of Equity Attributable to Owners of the Parent
statements in this report, whether as a result of new information, future 400 20
Establishing a Recycling-Based Society 62–63
events or otherwise. Therefore, it is advised that you should not rely 200 10 (¥ Billion) (¥) (%) (¥ Billion) (%)
es solely upon these projections and forward-looking statements in making 0 0
Reducing Environmental Risk and 100 200 35 6,000 50
s
your investment decisions. You should also be aware that certain risks
(FY) 18 19 20 (FY) 18 19 20
34.1 48.6
and uncertainties
Diesel enginecould cause theGasoline actual results of Toyota Industries Percentage of Establishing a Society in Harmony with Nature 63–65 88.8 90.5 47.1
engine Turbocharger Net Sales 28.3% 31.5 46.2
to differ materially from any projections or forward-looking statements 5,000
discussed in this report. These risks and uncertainties include, but are Environmental Management 65–67 80 77.6
150
30 5,258.5 5,261.1
45
27.7 5,279.6
not limited to, the following: (1) reliance on certain customers, (2) product 155 160 4,000
es
s development capabilities, (3) intellectual property rights, (4) product 60 25 40
defects,Variable-displacement
(5) price competition, (6) reliance onairsuppliers of raw materials 150
Electric compressor
and components,
type compressor
Fixed-displacement
(7) type
environmental
compressor
Oxygen-supplying
regulations, (8) success
compressor for fuel cell vehicles
Hydrogen circulation pump
or failure of
for fuel cell vehicles
Textile Machinery Corporate Information 100 3,000
strategic alliances with other companies, (9) exchange rate fluctuations,
(10) share price fluctuations, (11) effects of disasters, power blackouts
Net Sales
Directors, Audit & Supervisory Board Members,
Operating Profit 40
es
s and other incidents, (12) latent risks associated with international
(¥ Billion)
80
(¥ Billion)
8 Senior Executive Officers and Executive Officers 68–69 2,000 2,553.3 2,479.7 2,438.8
activities andDC-DC (13) retirement benefit liabilities.
60 6 50
converter 4WD rear inverter On-board charger 40

20
4

2 Major Bases 70–71 20

1,000
The fiscal year ended March 31, 2020 is referred to as fiscal 2020 and 0 0

72
(FY) 18 19 20 (FY) 18 19 20

other fiscal years are referred to in a corresponding manner. Investor Information 0 0 0

Percentage of
2.8%
Net Sales
es
s (FY) 2018 2019 2020 (FY) 2018 2019 2020 (FY) 2018 2019 2020
Quality measurement instrument Cash Dividends Per Share Dividend Payout Ratio (right) Total Assets Share of Equity Attributable to Owners of the Parent
Air-jet loom Ring spinning frame for fiber, yarn and fabric
Ratio of Share of Equity Attributable to Owners of the Parent (right)

6 Toyota Industries Report 2020 7

 Company Introduction Strategies and Businesses Promotion of ESG Initiatives Corporate Information
Consolidated Financial and
Non-Financial Highlights

Consolidated Financial and Non-Financial Highlights

Non-Financial Information (CSR) (FY2020) Non-Financial Information (Environment) (FY2020)

Consolidated Number of Employees Ratio of Non-Japanese Employees Consolidated Subsidiaries Energy Consumption (Consolidated) CO2 Emissions (Consolidated) Water Consumption (Consolidated)

66,478 persons 67.1 % 256 companies 17,212 TJ 923,314 t-CO2 4,521 km3
Number of Female Associates Holding Ratio of Associates with Number of Participants of Social Contribution Discharge of Treated Wastewater
Raw Material Consumption (Consolidated) Waste Generation (Consolidated)
Assistant Manager or Higher Position Disabilities (Non-Consolidated) Activities of Employee Associations (Consolidated)

141 persons 2.41*% 1,175 persons 2,522 km3 784,366 t 112,796 t

* As of June 1, 2019

Consolidated Number of Employees/ Participants of Japan’s Subcontracting

Ratio of Non-Japanese Employees Consolidated Subsidiaries Law Seminar Energy Consumption (Consolidated) CO2 Emissions (Consolidated) Water Consumption (Consolidated)
(Persons) (%) (Companies) (Persons) (TJ) (t-CO2) (km3)
70,000 70 300 1,200 20,000 1,000,000 5,000 4,873
66.6 67.1 1,141 941,371
65.2 913,123 923,314 4,620 4,521
256 17,514 17,212
60,000 66,478 60 250 254 254 1,000 978 16,939
64,641 800,000 4,000
61,152 15,000
50,000 825
50 200 800
40,000 600,000 3,000
150 600 10,000
30,000
400,000 2,000
100 400
20,000
5,000
50 200,000 1,000
10,000 200

0 0 0 0 0 0
(FY) 2018 2019 2020 (FY) 2018 2019 2020 (FY) 2018 2019 2020 (FY) 2018 2019 2020 (FY) 2018 2019 2020 (FY) 2018 2019 2020
Consolidated Number of Employees Ratio of Non-Japanese Employees (right)

Frequency Rate of Lost Workday Injuries Participants of Age-Based Health Education Rate of Undergoing a Stress Check Discharge of Treated Wastewater
(Non-Consolidated) (Non-Consolidated) (Non-Consolidated) (Consolidated) Raw Material Consumption (Consolidated) Waste Generation (Consolidated)
(%) (Persons) (%) (km3) (t) (t)
0.50 100 99 99 2,500 2,463 2,522 1,000,000 150,000
3,000 97 2,407

2,470 830,588 122,521

2,500 2,422 80 800,000 790,022 784,366 120,000
0.40 2,357 2,000
110,466 112,796
2,000
0.30 60 1,500 600,000 90,000

0.22 1,500
0.20 40 1,000 400,000 60,000
1,000
0.12
0.10 20 500 200,000 30,000
500
0.03
0 0 0 0 0 0
(FY) 2018 2019 2020 (FY) 2018 2019 2020 (FY) 2018 2019 2020 (FY) 2018 2019 2020 (FY) 2018 2019 2020 (FY) 2018 2019 2020

Number of Female Associates Holding Ratio of Associates with Disabilities Number of Participants of Social Contribution PRTR*1 Law Designated Substances Emissions/Transfer of PRTR Law Designated
Assistant Manager or Higher Position (Non-Consolidated) Activities of Employee Associations (Non-Consolidated) Substances (Non-Consolidated) VOC*2 Emissions (Non-Consolidated)
(Persons) (%) (Persons) (t) (t) (t)
150 2.5 2.41 2,000 1,500 400 1,500
141 2.37 380 375
2.26 1,326 364
1,291 1,283
120 120 2.0 1,200 1,178 1,200 1,176 1,168
1,500 1,548 300
104
1,251 900 900
90 1.5 1,175
1,000 200
60 1.0 600 600

500 100
30 0.5 300 300

0 0 0 0 0 0
(FY) 2018 2019 2020 (FY) 2018 2019 2020 (FY) 2018 2019 2020 (FY) 2018 2019 2020 (FY) 2018 2019 2020 (FY) 2018 2019 2020
Note: As of June 1 of each fiscal year *1: Short for Pollutant Release and Transfer Register, the PRTR law is a scheme whereby *2: Short for Volatile Organic Compounds
businesses measure the release and transfer of PRTR designated pollutants and report
their performance to the government. The government then compiles this data and
8 Toyota Industries Report 2020 releases it to the public. 9
 Company Introduction Strategies and Businesses Promotion of ESG Initiatives Corporate Information

Consolidated Eleven-Year Summary

Consolidated Eleven-Year Summary

Link to details.
Toyota Industries Corporation
Years ended March 31 Millions of yen

International Financial Reporting Standards (IFRS) Generally Accepted Accounting Principles in Japan (JGAAP)
2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010

For the Year

Net sales 2,171,355 2,214,946 2,003,973 1,675,148 2,243,220 2,166,661 2,007,856 1,615,244 1,543,352 1,479,839 1,377,769
Operating profit (loss) 128,233 134,684 147,445 127,345 134,712 117,574 107,691 77,098 70,092 68,798 22,002
Profit before income taxes*1 196,288 202,225 209,827 181,986 185,398 170,827 138,133 86,836 80,866 73,911 31,756
Profit (loss)*2 145,881 152,748 168,180 131,398 183,036 115,263 91,705 53,119 58,594 47,205 (26,273)
Investments in tangible assets*3 106,058 113,748 115,458 77,393 75,438 126,395 109,479 89,459 58,404 38,254 26,963
Depreciation*3 90,488 85,639 77,738 73,253 77,366 70,782 64,153 57,954 59,830 62,372 73,238
Research and development expenses 90,560 88,807 77,647 69,524 65,440 47,785 46,326 39,057 32,070 27,788 26,826
Per share of common stock (yen):
Earnings (loss) per share*2, *4
Basic 469.85 491.97 541.67 420.78 582.58 367.06 292.76 170.36 188.02 151.51 (84.33)
Diluted 469.85 491.97 541.67 420.78 582.57 366.99 292.57 170.35 188.02 151.51 (84.33)
Share of equity attributable to owners of the parent 7,854.87 7,986.59 8,223.82 7,125.37 6,481.97 7,500.16 5,640.08 4,719.66 3,662.26 3,300.17 3,390.02
Cash dividends per share 160.00 155.00 150.00 125.00 120.00 110.00 85.00 55.00 50.00 50.00 30.00
At year-end
Total assets 5,279,653 5,261,174 5,258,500 4,558,212 4,199,196 4,650,896 3,799,010 3,243,779 2,656,984 2,481,452 2,589,246
Share of equity attributable to owners of the parent 2,438,807 2,479,718 2,553,391 2,240,293 2,113,948 2,425,929 1,829,326 1,524,933 1,197,841 1,075,939 1,104,929
Capital stock 80,462 80,462 80,462 80,462 80,462 80,462 80,462 80,462 80,462 80,462 80,462
Number of shares outstanding (excluding treasury stock) (thousands) 310,483 310,485 310,487 310,489 314,226 314,155 313,730 312,207 311,687 311,564 311,570
Cash flows
Net cash provided by operating activities 313,199 270,306 268,567 239,094 240,169 182,191 155,059 151,299 101,718 153,661 203,452
Net cash used in investing activities (182,598) (395,000) (340,324) (86,925) (531,561) (160,769) (118,483) (274,210) (9,403) (187,574) (36,855)
Net cash provided by (used in) financing activities (7,094) 40,467 153,303 789 130,923 (8,918) 6,183 7,050 10,279 (85,728) (38,230)
Cash and cash equivalents at end of year 358,144 239,140 323,830 243,685 92,399 248,706 226,406 179,359 296,811 195,566 317,590
Indices
Operating profit ratio (%) 5.9 6.1 7.4 7.6 6.0 5.4 5.4 4.8 4.5 4.6 1.6
EBITDA (millions of yen)*5 336,415 323,998 313,055 276,193 369,857 248,854 216,175 155,234 161,876 150,481 90,521
Return on equity (ROE) (%)*6 5.9 6.1 7.0 6.1 8.3 5.6 5.7 4.1 5.4 4.5 (2.6)
Return on assets (ROA) (%)*7 2.8 2.9 3.4 3.0 4.1 2.7 2.6 1.8 2.3 1.9 (1.1)
D/E ratio (%)*8 54.9 52.3 45.7 43.6 43.7 32.0 39.9 45.4 53.8 56.8 60.3
Ratio of share of equity attributable to owners of the parent*9 46.2 47.1 48.6 49.1 48.5 50.7 46.6 45.4 43.0 41.4 40.8
Number of employees (persons) 66,478 64,641 61,152 52,623 51,458 52,523 49,333 47,412 43,516 40,825 38,903

*1: The figures prior to fiscal 2017 are ordinary income under JGAAP.
*2: Profit (loss) attributable to owners of the parent
*3: Investments in tangible assets and depreciation apply to property, plant and equipment. They do not include materials handling equipment leased
under operating leases.
*4: Earnings (loss) per share is computed on the average number of shares for each year.
*5: Profit before income taxes + Interest expenses – Interest and dividends income + Depreciation and amortization (including assets other than property,
plant and equipment)
*6: Profit (loss) attributable to owners of the parent / Average share of equity attributable to owners of the parent at the beginning and the end of the
fiscal year
*7: Profit (loss) attributable to owners of the parent / Average total assets at the beginning and the end of the fiscal year
*8: Interest-bearing debt / (Share of equity attributable to owners of the parent – Subscription rights to shares)
*9: (Share of equity attributable to owners of the parent – Subscription rights to shares) / Total assets
Notes: 1. Toyota Industries has adopted IFRS beginning from the end of fiscal 2017.
2. Operating profit in fiscal 2018 includes a one-time effect of ¥14.3 billion arising from changes in retirement benefit plans.

10 Toyota Industries Report 2020 11

 Company Introduction Strategies and Businesses Promotion of ESG Initiatives Corporate Information

Top Message

Strategies and Businesses

Steadily Carry Out Growth Strategies
by Leveraging the Strengths of
Each Business Field

Q
Could you explain the impact of COVID-19 on Toyota Industries and
its response to the pandemic?
Top Message P 12 – 17
COVID-19 is said to have a profound impact on the global economy
— the largest in the post-WWII period, far greater than the impact of the
Special Features P 18 – 25 global financial crisis in 2008 and comparable to the Great Depression
1. Strengths of Our Materials Handling Equipment Business in the 1930s. Toyota Industries also has been heavily affected by the
Aiming for Sustainable Growth
pandemic and has implemented a range of countermeasures.
2. Leveraging the Strengths of Diverse Businesses to
Adapt to Changes and Seek Sustainable Growth On the production and sales fronts, most of our plants around the
world suspended operations for a certain period in and after February
Business Activities P 26 – 37 2020. Even after lifting the suspension, some are still manufacturing at
Production of car air-conditioning compressors
a reduced volume. For sales and after-sales service activities, customer
visits have been restricted in some countries and regions. While giving
due consideration to the prevention of infection, we are aiming to return
business activities to normal levels. Organization for Promoting Profit
For back office employees and engineers, we have cancelled Improvement Activities
large meetings and events and encouraged working from home and Oversight: President
teleconferencing to reduce the risk of infection. Using this opportunity,
Chairman: Executive vice president
we have been streamlining operations by examining how we hold
Admin: Corporate Planning
meetings and revising and eliminating certain business processes. As a Dept. in the Head Office
manufacturer, Toyota Industries values the concept of genchi genbutsu
Each business division and
(go and see for yourself) in its operations. In the future, we will determine the Head Office
Top Message when to apply this concept by organizing operations into ones that Supporting
continue to require genchi genbutsu and ones that can be done more Subcommittees on labor costs, secondary

Looking beyond the COVID-19 efficiently online. Among the initiatives we are undertaking currently, materials costs and depreciation costs, etc.

we plan to carry on those that lead to work style reforms and better
Pandemic and Seeking productivity. They have served to accelerate our rather slow efforts to
improve work-life balance.
Sustainable Growth in As a response to a downturn in business, we have been
augmenting profit improvement activities. The plan is to substantially
Harmony with Society reduce capital investment and expenses by postponing non-
urgent projects. I am spearheading a Company-wide organization
Toyota Industries will take on new challenges to ensure encompassing various subcommittees to promote these activities. As
sustainable growth in a time of increasing uncertainty for research and development, we will prioritize projects and carry out
ones that are essential for our future growth. Anticipating a prolonged
while making Group-wide, concerted efforts to minimize
period of market instability, we have also increased cash on hand from
the impact of the COVID-19 pandemic. the amount of two months to three months of consolidated net sales.
Production of lift trucks

At times like this, it is important to thoroughly reaffirm the basics and go

Akira Onishi back to the origin of our business. Thus, we have been stepping up our
President efforts to “create a workplace environment that places a top priority on
safety,” “thoroughly control quality and enforce compliance” and “co-
exist harmoniously with society and protect the global environment.”

12 Toyota Industries Report 2020 13

 Company Introduction Strategies and Businesses Promotion of ESG Initiatives Corporate Information

Top Message

With regard to contributing to society, we have been carrying out In the materials handling equipment sector, market growth is
various support activities for medical institutions, which are becoming expected to continue well into the future. At Toyota Industries, this
overburdened by the spreading virus. As an example of support for business is regarded as a stock-type business that provides support
healthcare professionals utilizing our monozukuri (manufacturing) to customers in various areas, such as after-sales services and sales
capabilities, our bases in Japan and the United States have financing, along with equipment and systems.
manufactured and delivered medical face shields to hospitals, medical We intend to encourage collaboration between the Lift Truck
institutions and local governments. We are providing as much support Business, for which we boast the world’s top share*, and the Logistics
as possible to the dedicated healthcare professionals in this difficult Production of medical face shields Solutions Business, which we have been strengthening jointly with
situation. two subsidiaries, namely Bastian Solutions LLC and Vanderlande
Industries Holding B.V., in response to the particularly growing needs in
recent years. By doing so, we aim to respond to the changing needs of
customers more accurately and achieve sustainable growth.

Q
Given the impact of COVID-19, * Survey by Toyota Industries Corporation

what is your perspective on the future business direction?

Automobile-Related Businesses
It is difficult to foresee what the post-COVID-19 world will be like as With the idea of social distancing consciously beginning to take root,
the situation keeps changing from day to day. Nevertheless, we do the value of cars has been reconsidered as a means of mobility that
not think a drastic change is needed in our policy of promoting growth ensures personal space. We will continue to pursue growth in this field
through two business pillars, namely the Materials Handling Equipment by leveraging the strengths of engaging in
Business and the automobile-related businesses. businesses related to an entire automobile,
We do, however, have to take into account various factors, including from vehicle assembly to the manufacture
the impact on our businesses of the ongoing changes in various needs of car air-conditioning compressors,
caused by COVID-19. The following summarizes our planned efforts engines and electronics products.
over the near term. • Car air-conditioning compressor: Even
though the automobile market may need
L Efforts in Core Businesses some time to recover, we will work to
Materials Handling Equipment Business increase sales over the medium to long
Robot transfer system (university hospital)
There has been growing demand for higher logistics efficiencies and term on the back of an upward trend New RAV4 winning the Car of the Year Japan
lower logistics costs driven by an increase in e-commerce demand in automobile sales and an increase 2019-2020 award

and labor shortages. COVID-19 is expected to accelerate the trend. in the number of vehicles fitted with an air conditioner. We expect
Greater expectations are also placed on automation and autonomous particularly strong growth in demand for electric compressors. We
driving technologies for their potential important role in preventing have accordingly developed a large-capacity model used not only for
infection. We have already engaged in the development of automation vehicle interior air conditioning but also for cooling batteries and other
systems for better logistics efficiencies all around the world. In Japan, heat-emitting devices of electrified vehicles.
we have developed an autonomous robot to automatically deliver drugs • Vehicle: Toyota Industries manufactures the new RAV4, which was
and various test samples within a university hospital, thus contributing selected as the Car of the Year Japan 2019-2020 and became the
to the reduced workload of healthcare professionals. In Europe, our Automated lift truck
first vehicle of Toyota Motor Corporation (TMC) to receive the award Feeding power at an evacuation shelter
automated lift trucks have been operating in a food manufacturing plant, (food manufacturing plant in the Netherlands) in a decade. We also undertook the vehicle’s exterior design and Photo courtesy of Car & Leisure News

both ensuring good hygiene and successfully reducing the work done upper-body development. Being involved in the production of a
by human workers under low temperatures. We have also provided globally popular model is a great morale booster for our plant workers.
an advanced solution combining a logistics system and automated In June 2020, we started manufacturing TMC’s new RAV4 plug-in
lift trucks to a distribution center of a leading retailer and helped the hybrid electric vehicle. The car is selling well, as it offers a long driving
customer increase its productivity. range in the battery electric vehicle (BEV) mode and an external

14 Toyota Industries Report 2020 15

 Company Introduction Strategies and Businesses Promotion of ESG Initiatives Corporate Information

Top Message

power supply function to feed power to home electric appliances The Toyoda Precepts (corporate creed), which embrace the
during disasters and other occasions. We completed renovations of spirit of founder Sakichi Toyoda, represent Toyota Industries’ basic
our vehicle assembly plant two years ago, transforming it into a plant sense of value. Since our founding, we have always gone back to
with even greater competitiveness. We will continue to advance our our philosophy encapsulated in these precepts and endeavored to
productivity and quality to increase our role within the Toyota Group. provide products and services truly needed by customers. I believe our
• Engine: Diesel engines still have room for growth as an effective approach aligns with the objective of the United Nations’ Sustainable
means of mobility in inland China, Africa and other emerging Development Goals (SDGs).
countries. We assume a significant role in improving the performance As shown in the “Efforts in Core Businesses” section of this
of these engines in environmental and other aspects. Amid the message, our business structure is akin to a conglomerate. Among our
progress of car electrification, hybrid vehicles (HV) still require high- diverse businesses, we have explored how we should prioritize them
performance engines. We intend to leverage our strengths in this field and allocate resources to each in the face of the ongoing pandemic
as well. that is having an enormous impact on our society and economy.
• On-board battery: With car electrification gaining momentum, we We have come up with several ideas and options on how to do this.
have decided to start the development and production of a new However, it is now too early to decide on which idea or option to
battery. Utilizing our technologies cultivated in the development of implement, and we will need to make flexible responses as we see fit
batteries for lift trucks, we will develop a high-output, compact, long- toward the changing situation.
life and low-cost battery for adoption in TMC’s HVs. This is a fiercely
competitive sector on a global scale, but we intend to prevail with our In Conclusion
Major Events That Affected Japan
strong product appeal and turn it into a business that underpins the Japan experienced a series of national crises over a period of about
future of Toyota Industries. 25 years, including the Spanish flu epidemic in 1918, the Great Kanto 1918 – Spanish flu epidemic

Earthquake in 1923 and its defeat in World War II in 1945. The country
1923 Great Kanto Earthquake
has risen from the devastating damage of each crisis through the

Q What about the future direction of management?

strenuous efforts of the people of that time. The environment we live in
now significantly differs from the one in the past, but I think we can learn
many lessons from how these people witnessed and recovered from
1930 –

– 1945
Great Depression

World War II

To be honest, the profound impact of the COVID-19 pandemic makes each catastrophe.
it a challenge for me personally, and probably for many business Even though there is a common perspective that it will take
managers as well, to deliver a message this year. The situation keeps considerable time for COVID-19 to subside, cooperation is already
changing, and we see different news every day. We thought the infection underway in the healthcare field to develop vaccines and drugs. I believe
began to subside at one point but then have to worry about a second that promoting such cooperation between countries, regions and
wave and the spread of the virus in the Southern Hemisphere. The businesses will be essential for our recovery in the future.
good news is that the development of vaccines is proceeding and At Toyota Industries, we intend to overcome the current crisis by
economic activities are resuming; however, the bad news is that there Founder Sakichi Toyoda Toyoda Precepts sharing best practices and making concerted efforts among our globally
(corporate creed)
is growing concern about the pandemic becoming prolonged. Many operating businesses.
experts are providing various views about In recent years, we have been witnessing growing uncertainty caused
the post-COVID-19 world, but the truth is Toyoda Precepts (Corporate Creed) by geopolitical issues, natural disasters, and of course, infectious
no one knows for sure, or perhaps, it is just Carrying out the spirit of founder Sakichi Toyoda,
diseases including COVID-19. Amid this environment, we will continue
meaningless to speculate at this point. • Always be faithful to your duties, thereby contributing to the Company and to to pursue sustainable growth by leveraging our technologies, know-how
What is important now is to uphold our the overall good. and experience cultivated in our diverse businesses to adapt to a variety
basic sense of value and calmly and steadily • Always be studious and creative, striving to stay ahead of the times. of changes and by working even more closely with other companies in
do what we can. As the situation changes, • Always be practical and avoid frivolousness. the Toyota Group.
• Always strive to build a homelike atmosphere at work that is warm and friendly.
we have to think hard and find our own, right We will meet the expectations of our stakeholders through a
• Always have respect for God, and remember to be grateful at all times.
course of action. continuous relationship built from a long-term perspective.

16 Toyota Industries Report 2020 17

 Company Introduction Strategies and Businesses Promotion of ESG Initiatives Corporate Information

Special Feature 1

Special Feature 1
Status of the Materials Handling Equipment Business
Strengths of Our Materials Handling Equipment
L Business Composition
Business Aiming for Sustainable Growth The Materials Handling Equipment Business is Toyota Industries’ core business, accounting for 66% of total sales. Lift trucks,
our mainstay product, enjoy the world’s No. 1 market share*, while our Logistics Solutions Business is one of the largest in the
Since launching the production of lift trucks in 1956, the Materials Handling Equipment Business has grown into Toyota world*. Sales of equipment and those from our stock-type business generating relatively stable revenue, such as after-sales
Industries’ mainstay business through increased product appeal, an improved ability to provide excellent services and an services and sales financing, respectively account for about 40% of total sales in the Materials Handling Equipment Segment.
We are working to achieve maximum results by leveraging our business structure we have strengthened to date.
enhanced network. In the meantime, the development of the global economy, innovation of information-related technologies Logistics solutions, on which we have been focusing in recent years to respond to emerging needs, make up a rather small
and expansion of e-commerce and other new industries have generated new, growing needs in the logistics field. Toyota portion of the total sales of the Materials Handling Equipment Business. However, we believe that the business has great growth
Industries has responded to such needs and assisted customers in increasing logistics efficiencies by not only offering materials potential and have been collaborating with two subsidiaries, which we acquired recently, directed toward expansion.
* Survey by Toyota Industries Corporation
handling equipment as well as logistics systems and equipment but also by focusing on logistics improvements and solutions.
This Special Feature highlights the strengths and initiatives of our Materials Handling Equipment Business that strives to Sales Breakdown by Business Segment Summary of Sales in the Materials Toyota Industries’ Position in the Logistics System Supplier Industry
expand business by combining lift trucks and logistics solutions. Handling Equipment Segment 1.
Textile Others 2.
Machinery 3% Toyota Industries Group
3% Logistics solutions 3.
Distribution and Seaport Approx. 20% 4.
manufacturing Distribution Sales financing, 5.
industries center FY2020 attachments and 6. Vanderlande
Materials Value chain in the other components 7.
Net Sales Handling Lift Truck Business After-sales 8.
Equipment services, spare 9.
¥2,171.3 Approx. 40%
parts and others 10.
billion 66％ 11.
12.
Sales of lift trucks and 13.
Automobile other equipment 14. Bastian Solutions
28% Approx. 40% 15. Toyota Industries Corporation
16.
17.
18.
Toyota 19.
Toyota Industries’ 20.
Global Lift Truck Market Share Industries
World No. 1 Net sales

19%
(Survey by Toyota Industries Source: Produced by Toyota Industries based on the Top 20 Worldwide Materials
Corporation, 2019) Handling System Suppliers in 2020 by Modern Materials Handling magazine

Toyota Industries’ materials

L Initiatives for Future Growth
handling equipment as well
Innovation spurred by CASE (connected, autonomous, shared and electric) technologies in the
as logistics systems and
equipment support logistics automobile industry is also advancing in the materials handling equipment industry. Based on our
operations of customers broad product lineup and accumulated know-how in logistics improvement, we are strengthening
worldwide at distribution our initiatives in this area for further growth.
centers, manufacturing Connected: Systems that offer advanced operational management by connecting lift trucks
Airport sites, seaports, airports and and other equipment to the Internet and collecting relevant data have become popular mainly
other locations. among large-order customers. In addition to increasing the efficiency of logistics operations, these
Environment Surrounding Logistics systems visualize and analyze such variables as the operational status and battery consumption of Operational management system
each lift truck and help improve safety and save energy.
The need for higher logistics efficiencies is growing, driven by an expected increase in logistics volume over the medium to long
Autonomous: Lift trucks are used for logistics operations mostly in plants and warehouses.
term on the back of further growth of the global economy, coupled with a rise in labor costs mainly in emerging countries and
Because they operate in such limited locations, work standardization and automation are easier
labor shortages in developed countries. Besides conventional logistics operations using lift trucks, an expansion of e-commerce
compared to automobiles. We added automated guided forklifts (AGF) to our lineup in the 1980s
has increased the need for handling smaller parcels. In this way, customers’ logistics-related needs have also become
and have been accelerating the development of products that leverage our automation technology
increasingly diversified.
in response to the growing need for higher logistics efficiencies.
GDP by Region Labor Population in Key Regions (Ages from 15 to 64) Solution: At Toyota Industries, “S” is defined as “solution,” through which we seek to solve
(US$ trillion) (Million persons) logistics issues and make proposals for increasing efficiencies. In this endeavor, we go a step
250 2,000 beyond straightforward automation. We have been strengthening initiatives on a global basis
200 Others Africa
to provide logistics solutions that are suited to the type and scale of customers’ businesses,
1,500 accurately capture their individual needs and that are packaged as optimally designed systems.
China India
150 Electric: The introduction of electric lift trucks has started early on in the materials handling
Europe China
1,000 equipment industry as customers in certain sectors are required to satisfy zero emissions and
100 U.S.A. Europe
other clean performance standards. Currently, more than 60% of lift trucks sold in the world
Japan U.S.A.
500 market are electric. At Toyota Industries, the ratio is more than 70%. We respond to customers’
50 Japan
diverse needs by developing and increasing the lineup of products, including models equipped
0 0 with lithium-ion batteries and fuel cell lift trucks.
13 20 25 30 35 40 (Year) 15 20 25 30 35 40 45 50 (Year)
Among our CASE initiatives, the following pages provide example initiatives in the “S” (solution)
Source: Produced by Toyota Industries based on the U.S. Energy Information Source: Produced by Toyota Industries based on the United Nations’ World Population
Administration’s International Energy Outlook 2017 Prospects (2017 Revision)
and “A” (autonomous) fields, which have been drawing increasing attention from customers.
Fuel cell lift truck

18 Toyota Industries Report 2020 19

 Company Introduction Strategies and Businesses Promotion of ESG Initiatives Corporate Information

Special Feature 1

Example Initiatives in the Logistics Solutions Field Example Initiatives Related to Automation
1 2
With the acquisition of Bastian Solutions LLC and Vanderlande Industries Holding B.V. in 2017, we set up a structure to Since starting the production of lift trucks in 1956, our efforts have been geared toward logistics automation in the future.
offer an even broader range of logistics solutions to more customers. The three companies, including Toyota Industries, We started producing magnetic-type automatic guided vehicles (AGVs) and AGFs in the 1980s and have since been
have been working together and successfully created new business opportunities. working to increase the lineup in this area. Toyota Industries’ AGVs accurately capture the varying needs of each logistics
site, such as carrying industrial products in plants or warehouses, conveying baggage at airports and transporting large
containers at seaports, thereby contributing to customers’ improved logistics efficiencies.
L Collaboration of Bastian and Vanderlande in the Development of Image Going ahead, we will further bolster the development of AGVs and AGFs while leveraging our image recognition and
Recognition Technology other cutting-edge technologies and promoting collaboration with external organizations.
At warehouses and distribution centers, order picking to pick up ordered items from stock
storage is one of the most important operations and reducing pick-up errors is essential in
increasing productivity. Many processes at logistics sites have already been automated and L Taking on a Challenge of Automating Outdoor Operations
contributing to higher productivity. However, automation of the order picking process has Capitalizing on our technology and know-how for autonomous driving obtained through the
not proceeded, as picking up correct items of varying forms and materials poses a technical development of AGVs and AGFs for indoor use, we have been developing technology for
challenge. automated operations outdoors, for which needs are growing.
Bastian and Vanderlande, which each develops automated picking systems We have conducted outdoor feasibility tests of our AGFs at several locations, including a
independently, have formed a joint team to accelerate the development of advanced facility shipping agricultural products. Outdoor automated operations pose a far greater challenge
technologies that satisfy market demand. Instant recognition of the location and shape than indoor operations because of uneven surfaces and irregular cargo locations. We have also
Example of image recognition
of an item and its stored position is crucial in ensuring the correct picking up of items carried out two autonomous driving tests of our towing tractors, which transport baggage and
whatever their shapes are and however they are stored. As such, automation of the process other items at airports, under different conditions. Our focus is to promote the development of
requires advanced image recognition technology. The joint team is mainly engaging in systems that can ensure safe and smooth automated operations and cargo transportation at a
AGF feasibility test
the development of this technology and aiming for early commercialization by increasing place crowded with various types of vehicles.
accuracy through feasibility tests using order picking robots of each company. In the future, we will repeatedly conduct feasibility tests on automated operations of lift trucks
We will continue to deepen the collaboration between the two companies and develop and various materials handling equipment for swiftly achieving their practical use.
technologies and systems that will contribute to greater logistics efficiency.

L Evolution of AGVs
Utilizing AGVs for which we have been engaging in the development for many years, we are making
L Working Together in Japan for a Global Delivery Service Operator efforts in achieving a more advanced level of logistics automation. With distribution centers
through the Collaboration of Vanderlande and becoming increasingly larger, one challenge is to reduce the workload of operators carrying items
Toyota Material Handling Japan during a process that involves picking up ordered items from storage shelves. In response, we have
One of the important customers of Vanderlande is the world’s largest-class operator utilized our experience in AGV development to create an autonomous logistics robot that tracks the Autonomous logistics robot
engaging in international delivery services. Up to the present, Vanderlande has built systems picking operator at a certain distance and can be summoned or directed to a specified location at
for the operator’s distribution centers in many countries, but lacking a base in Japan, had not the beginning or end of work. We are accelerating our development efforts for its commercialization
been able to support them in this regard. On the other hand, Toyota Material Handling Japan, based on the results of feasibility tests undertaken at logistics sites of our customers.
which is responsible for Toyota Industries’ Lift Truck and Logistics Solutions Businesses, has Among our products for use in airports, for which we expect growth in the number of users
been developing and selling materials handling systems and equipment in Japan, but in over the medium term, we have been focusing on the commercialization of autonomous AGVs.
some cases could not fully satisfy customer needs, including the above-mentioned operator, An autonomous baggage handling system developed by Vanderlande, in particular, has already
Autonomous baggage handling system
due to its limited system and equipment lineup. gone into full-scale operation in Rotterdam The Hague Airport. The system can flexibly used in airports
Meanwhile, Toyota Industries has appealed the strengths of the entire Group accommodate layout changes on the operating route and system expansions. Efforts are also
Vanderlande’s CROSSBELT SORTER
encompassing Bastian and Vanderlande to a broad audience through trade shows and other underway to integrate AGVs manufactured at one of our lift truck production bases in Europe into
opportunities. At the same time, we have concentrated on the establishment of a structure to the system. We are stepping up efforts to increase its use mainly at hub airports around the world Web
sell and provide support services for a wide range of Vanderlande’s equipment and systems as an epoch-making system that replaces conventional conveyors.
in Japan. Web
Link to system details.
These efforts have enabled us to offer the full spectrum of logistics systems in Japan,
Link to sorter details.
including those of Vanderlande, and we received an order from the said operator for the first
time for a project for a distribution center in the country.
Message from the Director
Logistics needs have become increasingly diversified and have continued to change. Leveraging our
experience and know-how accumulated while working with customers worldwide, we seek to develop
In the Logistics Solutions Business, Group companies complement each other in terms of geographical coverage and the products and services that go a step ahead of the times and offer optimum solutions to individual
size and business category of target customers through increased collaboration within the Group, and we can now offer customers. Fueled by an accelerated expansion of the e-commerce market as a result of the spread of
solutions that combine the “hardware” and “software” of each company. Collaboration with the Lift Truck Business has COVID-19 and other factors, needs in the logistics solutions field are on the rise, which in turn is expected
increased opportunities to offer an even broader set of logistics solutions to customers using our lift trucks. Based on our to advance the mechanization and automation of logistics operations. As a response to the changing
comprehensive strengths, we seek to accurately respond to our customers and further realize business expansion. environment, we are working to expand business by further strengthening the collaboration of Bastian,
Vanderlande and Toyota Industries, each of which possesses different strengths. We aim to become the
world’s leading logistics solutions provider to help customers resolve their logistics-related issues by Yojiro Mizuno
harnessing our strengths in engaging in the two businesses of lift trucks, for which we enjoy the world’s top Director and
market share, and logistics solutions, for which significant growth is expected in the future. Senior Executive Officer

20 Toyota Industries Report 2020 21

 Special Feature 2 Autonomous baggage
handling system
used in airports
Automatic truck
Unit-type automated Simple AGV loading and

Leveraging the Strengths of storage and

retrieval system
(automatic guided
vehicle)
Fuel cell lift truck
unloading robot

Diverse Businesses to Adapt to

Changes and Seek Sustainable Growth
LA-type internal-
combustion Aerial work
lift truck platform

FB15 electric Engine for

Changes in customer needs and advances in technology have been lift truck hybrid vehicles
Materials Handling Equipment
proceeding at an increasing pace. There has also been lingering Electric
Utilizing automobile-related basic Electronics compressor
uncertainty about political and economic prospects. Amid this technologies in developing and Developing electronic components for lift trucks led to
manufacturing lift trucks RAV4
environment, Toyota Industries believes that engaging in multiple launching development and production of electronic
components for materials handling equipment and
businesses with different strengths, as opposed to focusing solely on automobile-related products DC-DC converter
Engine Vehicle
a specific business, will allow us to adapt to changes and achieve GD diesel engine
Applying foundry and other technologies for
sustainable growth through complementary collaboration among 1953– textile machinery to the automobile-related Fixed-displacement
businesses type compressor
these businesses. Diversification of Businesses Variable-displacement
type compressor
This Special Feature presents some of our initiatives to promote Branching out into the automobile-related Compressor Static induction transistor
businesses in pursuing business Entering the car air-conditioning compressor
sustainable growth by leveraging the strengths of our diverse diversification during the recession in the business by combining technologies accumulated
early 1950s in Japan, thereby capturing in the automobile-related businesses with the
businesses. needs arising from the growing domestic Publica pickup truck
outcome of research on room air conditioners
automobile industry S-type gasoline
engine

JAT810 air-jet loom

1926– Textile Machinery
The Beginning RX300 ring spinning frame
Establishing Toyota Industries to manufacture
Quality measurement
and sell the Type G automatic loom invented JA air-jet loom instrument for fiber,
and completed by founder Sakichi Toyoda yarn and fabric
RI high-draft ring spinning frame

History of Business Expansion to Date Efforts to Deepen Collaboration among hold Company-wide technology exhibitions of products
Businesses to Generate Ideas and production engineering examples of each business
Web
After conducting a great deal of research, founder Sakichi division and meetings of the Council of Heads of Engineering Web
Toyoda invented the Type G automatic loom with an Previously, business divisions of Toyota Industries had made Departments as a place for heads of the engineering
aspiration to “contribute to society through monozukuri development efforts individually, and in some cases, had not departments of each business division to exchange
(manufacturing).” Toyota Industries, founded to manufacture been able to fully leverage the necessary technical information information. Through these opportunities, we back up efforts
and sell the loom, had concentrated on expanding this or know-how and knowledge accumulated in other divisions. to share and utilize technologies within Toyota Industries. Link to
Technical Review
original business but started seeking business diversification In recent years, the R&D Headquarters, an organization (in Japanese).
during the recession in the early 1950s. responsible for promoting research and development, has Company-wide technology exhibition Toyota Industries
At that time, the growing automobile industry in Japan been assuming the role of ensuring horizontal alignment and (December 2019) Technical Review
was generating new needs. To capture these needs, we promoting collaboration among the business divisions.
first branched out into the engine and vehicle assembly As these business divisions face similar technical issues Example Outcome of Interdivisional Collaboration
businesses by utilizing foundry and other technologies and possess many common elemental technologies, we have
accumulated in the textile machinery field. Then we been devising effective ways to generate synergies among 1 Development of Hydrogen Circulation Pump and Inverter for Fuel Cell Vehicles Compressor Electronics

started developing and manufacturing car air-conditioning them by collecting, disseminating and sharing information and
compressors. As labor shortages prompted a rise in the need providing opportunities for technical exchange.
for streamlining cargo handling, we directed our attention We believe that these day-to-day efforts have helped Background of Development
to lift trucks that have a number of components similar to us upgrade and increase the efficiency of our development Toyota Industries’ hydrogen circulation pump and control inverter are fitted in a fuel cell
automobiles such as an engine and launched development activities. vehicle (FCV) of Toyota Motor Corporation (TMC), which only emits water when driven and
in this field. Moreover, capitalizing on our technology and For information gathering, we provide various forms greatly contributes to a reduction of CO2 emissions. As an FCV runs on electricity generated
know-how accumulated in the development and in-house of support. Examples include issuing Toyota Industries through a chemical reaction of hydrogen and oxygen, it significantly differs in structure
production of electronic components for lift trucks, we Technical Review, a magazine on technical information related from an internal-combustion vehicle. With a pool of compression technology accumulated
entered the electronics business, offering electronics products to product development and monozukuri; disseminating Kazuho Sato in the Car Air-Conditioning Compressor Business and motor, inverter and other elemental
also for automobiles. information on changes in the R&D environment, including technologies, however, we had faith in our ability to create a hydrogen circulation pump and
In this way, we have constantly taken on the challenge of economic conditions in each country and the trends in the Project leader inverter, two of the key components of an FCV critical to its driving performance. Applying
creating new value based on our own strengths and achieved materials handling equipment and automobile industries; FC Project these technologies, we launched development of the two components and succeeded in
Compressor Division
continued growth, always upholding the philosophy of and presenting examples of companies having technological mass production.
(As of March 31, 2020)
“contributing to society” since our founding. excellence. As opportunities for technical exchange, we

22 Toyota Industries Report 2020 23

 Company Introduction Strategies and Businesses Promotion of ESG Initiatives Corporate Information

Special Feature 2

Utilization of Existing Technologies Inverter Fruits of Collaborative Development

Developed by the Electronics Division
Performs drive control of the pump with Diesel hybrid system for Diesel engine Developed by the Engine Division
Hydrogen circulation pump
a minimum amount of electricity. construction machinery Satisfied exhaust gas regulations without using a
Developed by the Compressor
Developed a highly efficient inverter for Offers a 40% better fuel urea Selective Catalytic Reduction (SCR)*1 system
Division
a hydrogen circulation pump at a low efficiency while maintaining for the first time in the world*2 and achieved lower
Efficiently circulates unreacted high power performance. running costs by eliminating the need for refilling
hydrogen and water generated in the cost by applying inverter engineering
technologies accumulated in the electric urea while maintaining durability.
electricity generation process.
car air-conditioning compressor field.
Successfully developed a new,
low-cost hydrogen circulation
Control software
pump that is highly efficient, more
compact and lighter weight by Developed by the Compressor Division
applying compression, motor and Quickly developed a high-quality control
production engineering technologies software program by applying software
accumulated in the car air- programs for electric car air-conditioning
conditioning compressor field. compressors.

Equipped in the ZH200-6 hybrid excavator of

Motor Hitachi Construction Machinery Co., Ltd.
Developed by the Engineering Dept.
Completing a Hydrogen Circulation Pump The previous collaboration between the Compressor
No. 2, R&D Headquarters PCU (controlling motor’s rotational speed)
Division and Electronics Division in developing an electric
by Overcoming Major Development- compressor enabled us to quickly overcome the challenges Offers high output and high efficiencies Developed by the Electronics Division
Related Challenges through Close in the new field. These divisions smoothly forged ahead
through an engine with a built-in motor, Is based on a compact and highly efficient PCU for hybrid vehicles
which can be fitted into the conventional and offers improved cooling performance and vibration resistance
Interdivisional Collaboration with the development of respective products while mutually engine space. matched to construction machinery.
taking into account the impact of their own product on the
We received various requests from TMC as it underwent other’s product. This led to
the process of trial and error for the development of an FCV. development activities that *1: Means to convert NOx
*2: Survey by Toyota Industries Corporation
One of them, in particular, related to the need to ensure focus on overall optimization,
smooth start-up and operation of the vehicle in sub-zero transcending individual
temperatures. In response, the circulation pump and inverter products. Other benefits Realizing a Hybrid System for Construction holistic view in developing a hybrid system for construction
machinery that is mechanistically similar to lift trucks. The
development teams worked together and improved the included less time spent on Machinery by Integrating Highly Functional result was a system that has realized a 40% higher fuel
pump’s startability and controllability. They also had repeated discussion with the customer Components
and increased efficiency in efficiency than conventional internal-combustion excavators,
discussions from various perspectives for the alignment of
project flow. while maintaining the equivalent level of power performance.
work on the activation of an inverter at high temperatures. The most crucial challenge was how to realize an optimum
system for construction machinery used in a considerably
harsher environment than automobiles. To overcome this Added value System business
We successfully developed products that generate new added value by bringing together and
challenge, the Engineering Department No. 2 of the R&D High
harmonizing elemental technologies cultivated in each business division.
Headquarters conceived the optimum design of the overall
Toward car electrification, the development of diverse products will become increasingly
system, and each business division embarked on the HV/PHV
important in the future. We intend to leverage our advanced collaborative structure to provide
development of an optimum component using the design as Unit business
new products through swift development efforts at a high level. EV FCV
a starting point.
Specifically, we had to install components of the hybrid Engine

system, including an engine, motor and power control unit Inverter

Battery
(PCU), into the conventional engine space. To accommodate System
Example Outcome of Interdivisional Collaboration Compressor integration
more components, we needed to reduce the overall size,
Development of a Diesel Hybrid System for Materials Handling Motor
2 Construction Machinery Equipment R&D Headquarters Engine Electronics and at the same time, had to ensure the level of performance
required for construction machinery. Taking on a challenge we Low
had never faced before, the relevant business divisions joined Small Domain for work alignment Large

Background of Development forces and used their ingenuity to find a solution, which led to HV/PHV : Motor, inverter, battery and engine
Since going into effect in 1991, the exhaust gas regulations for construction machinery have quickly developing a high-quality system. EV : Motor, inverter and battery
FCV : Motor, inverter, battery, oxygen-supplying air compressor and
become progressively more stringent, and energy-saving needs have been also growing Furthermore, we believe that already having a lift truck
hydrogen circulation pump
considerably. Against this backdrop, a leading construction machinery manufacturer has as a finished product in our lineup enabled us to take a
been promoting the development of environment-friendly hybrid excavators. We became
the manufacturer’s first choice as its partner because we had already had experience in Toyota Industries has a number of core technologies required in electrified products, such
Kenichi Katae developing hybrid systems, with Toyota Material Handling Japan initiating sales of a hybrid lift as hybrid vehicles (HV), plug-in hybrid vehicles (PHV), electric vehicles (EV) and FCVs, which
truck in 2010. The idea was to apply technologies we have cultivated in the electric lift truck are expected to become more diversified in the future. Going ahead, we intend to respond to
General Manager
field and in the Electronics Business to a hybrid system for construction machinery. Multiple electrification both in the materials handling equipment and automobile fields and swiftly deliver
Engineering Dept. No. 2
R&D Headquarters business divisions of Toyota Industries accordingly started collaborating and developing key the required products to the world by combining components from these two fields and offering
(As of March 31, 2020) components, including an engine and a motor. them as an integrated system.

24 Toyota Industries Report 2020 25

 Company Introduction Strategies and Businesses Promotion of ESG Initiatives Corporate Information

Business Activities

Business Activities
Materials Handling Equipment — P26–30 Automobile (Vehicle / Engine / Car Air-Conditioning Compressor / Car Electronics) — P31–36 Textile Machinery — P37
Business Structure logistics efficiencies based on our comprehensive strengths
Toyota Industries’ Materials Handling Equipment Business in satisfying varying needs of customers worldwide. On
is operated under a two-organization structure: Toyota the sales front, we are offering products and logistics
Web Material Handling Group (TMHG) responsible for the Lift improvement solutions optimally matched to individual
Materials Handling Equipment Truck Business and Toyota Advanced Logistics Group customers’ logistics sites. Simultaneously, we are seeking to
(TALG) engaging in the Logistics Solutions Business. TMHG obtain large orders by responding to demands of customers
As a market leader with an extensive knowledge of global logistics needs, Toyota Industries provides and TALG collaborate with each other to achieve overall who conduct business globally. In terms of services,
a range of materials handling equipment, mainly lift trucks, and logistics solutions to customers. Link to product
details. growth of the Materials Handling Equipment Business while we assign experienced and knowledgeable personnel
reinforcing individual businesses. and utilize leading-edge information technology (IT) to
provide finely tailored services to customers. Our service
Toyota Material Handling Group (TMHG) personnel visit customers on a periodic basis and provide
Medium-Term Direction of Business Toyota Industries assists customers worldwide in attaining maintenance services to prevent troubles from occurring.
We will work to develop and propose new products and services incorporating cutting-edge technologies through the greater logistics efficiencies as a market leader in the When a problem does occur, they swiftly make a visit to the
proactive use of open innovation and co-creation with customers. materials handling equipment and logistics fields by customer and promptly take appropriate action. We are also
Our goal is to become the logistics solutions partner of the first choice for customers by meeting their wide-ranging delivering logistics solutions optimally tailored to their strengthening our internal sales financing operations mainly
needs and helping them increase their logistics efficiencies based on the Toyota Industries Group’s comprehensive strengths specific and ever-changing needs. in Europe, the United States and other developed countries
covering both the lift trucks and logistics solutions fields. Under the TMHG management structure, we engage in in order to respond to customers’ diverse needs in the area
the Lift Truck Business under the TOYOTA, BT, RAYMOND, of equipment sales. Additionally, TMHG is collaborating
CESAB and Tailift brands. Mutually utilizing the development with TALG to create synergies between the lift trucks and
and sales strengths of each brand, TMHG is promoting logistics solutions fields in development and other domains.
Business Characteristics business on a global scale.
Strengths Opportunities We basically carry out product development in three Toyota Advanced Logistics Group (TALG)
• An extensive logistics-related product lineup both in the fields of materials handling • An expansion of global logistics volume in line with an increase in the world regions, namely Japan, North America and Europe. Based Following an expansion of the e-commerce market,
equipment (internal-combustion lift trucks, electric lift trucks, fuel cell (FC) lift population and economic growth on this structure, we develop and manufacture products in providing solutions to diverse and complex logistics issues
trucks, etc.) and materials handling systems (automated storage and retrieval • Growing need for products with high energy savings and low environmental impact each region, which are matched to the specific local needs for distribution centers has become a pressing task, and
systems, automatic guided vehicle (AGV) systems, automated lift trucks, etc.) following enforcement of more stringent environmental regulations around the world and characteristics, and ensure quick product delivery to needs for logistics solutions have been growing globally.
• High technological capabilities, including those linked to environmental and safety • Growing need for electric lift trucks driven by a rise in eco-consciousness customers. At the same time, we seek greater product Amid this environment, we go a step beyond just
performance • Rising need for higher logistics efficiencies prompted mainly by a growth in appeal by conducting in-house development and production providing a broad range of materials handling equipment
• Production know-how that ensures high levels of quality and production efficiency e-commerce transactions as well as soaring labor costs and labor shortages of key components of lift trucks, including engines and associated software programs and are reinforcing our
• Global, well-developed production, sales and service networks
Risks and motors. In response to the enforcement of stricter Logistics Solutions Business to more meticulously satisfy
• An extensive value chain encompassing in-house development and production of
engines, motors and other key components; total after-sales services including environmental regulations and growing eco-consciousness each customer’s varying needs by leveraging our logistics
• Restrained capital investment due mainly to a slowing economy and disasters
maintenance and inspections as well as operational management; and sales worldwide, we are improving the energy-saving performance improvement know-how accumulated to date.
• Weaker sales due to intensifying competition
financing operations offering more options in sales and enhancing our electric lift truck lineup. We are also Under the TALG management structure, the Logistics
• Change in business environment triggered by an expanding market of low- to
• No. 1*1 in lift truck unit sales in the world promoting development of autonomous driving technology System Engineering Department of Toyota Material Handling
mid-priced lift trucks
• A wealth of experience and know-how as well as a global network in the Logistics as a response to growing needs for greater logistics Japan, which mainly engaged in business in Japan, and two
Solutions Business • Suspension of production caused by supply chain disruptions
efficiencies mainly driven by labor shortages. companies that joined the Toyota Industries Group in 2017,
• Software development capability to create such systems as a warehouse In addition to supplying high-quality products, we have namely U.S.-based Bastian Solutions LLC and Netherlands-
management system
established a structure to support customers throughout based Vanderlande Industries Holding B.V., are collaborating
*1: Survey by Toyota Industries Corporation
our entire value chain that encompasses from providing with each other in development, sales and other activities to
after-sales services through our extensive networks to expand business while leveraging their individual strengths.
offering sales financing operations. We contribute to greater
FY2019 FY2020 FY2019 FY2020
Operating
Net Sales
¥1,466.6 billion ¥ 1,436.3 billion Profit ¥114.6 billion ¥ 102.2 billion Toyota Material Handling Group

TMHG n Toyota Industries’

Global Lift Truck
Materials Handling Equipment Sales
(Thousand units)
Business Overview in Fiscal 2020 Market Share
(Survey by Toyota Industries
300
In the Materials Handling Equipment Business, the lift truck market in 2019 Corporation, 2019)
turned downward except for China, where sales continued to increase. Amid
250 this operating climate, Toyota Industries engaged in sales and after-sales TMHJ TMHNA TMHE TMHI TMHCN Toyota
service activities matched to respective markets. However, unit sales of lift Toyota Material Toyota Material Toyota Material Toyota Material Toyota Material Industries
200 trucks for fiscal 2020 were down 22,000 units, or 7%, to a total of 278,000 Handling Handling Handling Handling Handling 19%
units from the previous fiscal year. As the need for higher logistics efficiencies Japan North America Europe International China
150
is getting increasingly stronger, underpinned by an expansion of the
100 e-commerce market, Toyota Industries made efforts for further business
reinforcement through collaboration with logistics solutions subsidiaries in the
50 United States and Europe. Net sales in fiscal 2020 declined by ¥30.3 billion, or The Toyota Material Handling Group possesses several brands such as TOYOTA, BT and RAYMOND and engages in
2% year on year, to ¥1,436.3 billion. business by dividing the world into five areas: TMHJ (Japan), TMHNA (North America), TMHE (Europe),
World No.1
0 TMHI (Asia, Australia, etc.) and TMHCN (China).
(FY) 16 17 18 19 20

26 Toyota Industries Report 2020 27

 Company Introduction Strategies and Businesses Promotion of ESG Initiatives Corporate Information

Business Activities

Toyota Advanced Logistics Group position*4 in calendar 2019 for the 54th consecutive year. North American Market European Market
In recent years, customer needs have become With a year-on-year decline in the North American lift truck Although the European lift truck market in 2019 was down
TALG increasingly diversified in line with changes in the business market in 2019, Toyota Industries posted unit sales in fiscal from the previous fiscal year, Toyota Industries posted unit
environment, including an expansion of the e-commerce 2020 of 92,000 units, down 7% from the previous year, sales of 93,000 units in fiscal 2020 on par with fiscal 2019.
Logistics System market, labor shortages and growing safety and but still remained the market share leader*7 in 2019. In addition to new lift truck sales, orders for after-sales
Engineering Department TALNA*2/ environmental consciousness among companies. As the Meanwhile, parts sales and orders for after-sales services services and sales of parts remained strong.
of Toyota Material
Vanderlande
Bastian leading manufacturer of materials handling equipment, remained strong. In Europe, needs for
Handling Japan
Toyota Industries has been proactively promoting the Amid this environment, Toyota Industries is proactively connected and automated
*2: Toyota Advanced Logistics North America (Holding Company of Bastian)
release of new products that lead to resolving issues facing pushing ahead with product lineup and functional lift trucks are growing.
Under TALG, the Logistics System Engineering Department of Toyota customers. enhancements both under the TOYOTA and RAYMOND Toyota Industries offers
Material Handling Japan, Bastian and Vanderlande work together to
For example, we brands. I_Site, a fleet management
promote the Logistics Solutions Business on a global scale while
leveraging their individual strengths. released an FC lift truck for Toyota enhanced its system that enables
the first time in Japan*5 in electric product offering not customers themselves Logiconomi Forum
2016. This 2.5-ton model only with the release of a 1-ton to collect and analyze
Business Activities in Fiscal 2020 has been highly acclaimed electric lift truck that has been operational and other
Despite continued growth in China, the world’s lift truck by customers not only for developed by a subsidiary information of their lift trucks connected to a network. More
market in 2019 turned downward with weaker sales in its excellent environmental in North America based on than 12,000 lift trucks are now using I_Site. We are also
Japan, North America, Europe and emerging countries. performance of not emitting local customer needs but also 1-ton electric lift truck
fostering partnerships with outside companies to reinforce
1.8-ton FC lift truck
Amid this environment, we worked to enhance the product CO2, NOx and other gases with the addition of a number our development capabilities in the fields of automation
appeal of our mainstay lift trucks and expand sales. We while in operation but also of new options to its electric and other advanced technologies. As part of this effort,
also strove to offer reliable after-sales services, enhance for its great convenience of completing hydrogen charging pallet trucks. The focus was also on battery solutions that Toyota Material Handling Europe (TMHE), our European
responsiveness to large-order customers and provide in about three minutes. More recently, we added a 1.8-ton present optimum ways of charging and handling batteries. headquarters for materials handling equipment, hosted the
solutions to achieve greater logistics efficiencies through the type as growing environmental consciousness pushed up Toyota’s efforts for improving the competitiveness of its Logiconomi Forum, inviting leading companies in various
introduction of distribution systems. needs for smaller models. As part of efforts to enhance the dealers include operating an after-sales service evaluation industries to give lectures and exchange views.
To meet the diverse needs of customers in the field of lineup of FC models, we have also conducted a feasibility and certification system and promoting a program to build a As for electrification,
lift trucks, we made efforts to increase our product lineup in test of an FC towing tractor. leaner and more efficient business structure in a systematic TMHE released a new
each region and promoted the development of autonomous Needs are also growing for the automation of materials manner. Some Toyota dealers have also captured a new electric pallet truck with
driving technology internally and with external organizations. handling equipment to reduce logistics work and improve business opportunity by starting to use this program to solve an entirely optimized
We also worked to reinforce our IT-based services in order efficiencies. In response, we have carried out autonomous customers’ problems. structure. The adoption
to ensure a more accurate response to individual customers. driving tests of our towing tractors jointly with All Nippon Raymond further of lithium-ion batteries
In the logistics solutions field, we have been accelerating Airways Co., Ltd. within restricted areas at Kyushu-Saga augmented the functionality has made the resulting
New electric pallet truck
coordinated activities as TALG to mutually supply equipment International Airport and Chubu Centrair International of its iWAREHOUSE fleet truck considerably smaller,
and systems while encouraging each company to leverage Airport. We have also joined the Consortium for Open- management system. It has lighter, more energy-
its strengths to bolster business. Field Agricultural Robotics*6 engaging in research and evolved into a platform to efficient and easier to operate. The truck received the iF
Meanwhile, Aichi Corporation, which possesses the top development for labor saving in the agricultural field. Our centrally manage various Design Award 2020 for these excellent features. TMHE also
brand*3 in the field of aerial work platforms in Japan, enjoyed part in the project is to develop a lift truck that autonomously functions associated with rolled out new internal-combustion counterbalanced lift
iWAREHOUSE
a growth in demand up until the loads cargoes onto a truck. warehouse equipment, from trucks surpassing the latest EU Stage V regulations. These
first half of fiscal 2020, driven by In February 2020, we participated in Logis-Tech Tokyo – the existing roles to certify trucks are equipped with internally produced engines, which
enforcement of strict emissions INNOVATION EXPO – under the concept of “Exact Solutions operators, detect collisions and analyze the operational offer high efficiency, reliability and maintainability.
standards. However, demand to Your Logistics.” We ran the largest booth among the status of lift trucks to additional features to manage We will continue to upgrade the environmental
declined on the rebound in the participating companies and showcased to some 22,000 personnel and provide virtual reality (VR) operation training. performance and other functions of our products and help
second half. Sales were also visitors our latest logistics solutions, including the Key Cart Raymond developed a new system to remotely support customers improve their logistics efficiencies by focusing on
affected by Typhoon Hagibis that automatic guided vehicle (AGV) based on simultaneous operators’ order picking work and has been leveraging automation that leverages the latest technologies.
made a landfall in Japan in 2019 cutting-edge technologies to assist customers in increasing
and decreased in all industries their logistics efficiencies. ALOMA*8 and Chinese Markets
except for the leasing industry. As Additionally, Toyota and Raymond are selling parts Toyota Industries covers the ALOMA markets of some 60
a result, Aichi’s overall sales were and entry-level models and providing safety operations countries in Asia, Latin America, Oceania, the Middle East
down from the previous fiscal year. Aichi Corporation’s
e-learning materials through e-commerce sites to provide and Africa as well as the Chinese market. We are serving
*3: Survey by Aichi Corporation aerial work platform greater convenience to customers and expand business these markets with a lineup consisting of TOYOTA, BT,
opportunities. Toyota and Raymond are also accelerating RAYMOND and Tailift brands.
technology development for next-generation materials In 2019, the ALOMA market declined from the previous
Activities of TMHG Toyota Industries’ booth at Logis-Tech Tokyo
handling equipment by working closely together with two fiscal year while the Chinese market continued to expand.
universities. Amid such conditions, Toyota Industries worked to enhance
Japanese Market localization and mapping (SLAM) technology and the AiR-T Toyota Industries will continue to promote product its product lineup, reinforce sales and after-sales service
The business environment in Japan became difficult as the autonomous intelligent mobile robot. development, sales and after-sales service activities by activities and promote logistics improvement solutions. In
lift truck market slowed down slightly in 2019. It was further *4: S
 urvey by Toyota Industries Corporation based on data published by Japan Industrial leveraging the strengths of the two brands. In addition, spite of these efforts, unit sales were down 18% from the
compounded as the production of lift trucks at a Toyota Vehicles Association through closer collaboration with the Logistics Solutions previous fiscal year to 48,000 units in fiscal 2020.
*5: Survey by Toyota Industries Corporation
Industries plant was suspended due to a disruption of parts *6: C
 onsortium engaging in a research and development project, selected as an Innovative Business we will accurately respond to the needs for greater To date, Toyota Industries has launched sales activities
supply following Typhoon Hagibis. Unit sales of Toyota Technology Development and Immediate Deployment Project (in the category of Future logistics efficiencies, including those for automation. with a focus on logistics improvement solutions in 14
Agriculture Creation Projects Using Artificial Intelligence) of the National Agriculture and
Industries’ lift trucks consequently declined by 6% year on Food Research Organization’s Bio-oriented Technology Research Advancement Institution
*7: Survey by Crist Information & Research, LLC, 2019 countries. We are strengthening our relationships of trust
year to 45,000 units in fiscal 2020, but still maintained the top with customers by offering solutions to reduce logistics

28 Toyota Industries Report 2020 29

 Company Introduction Strategies and Businesses Promotion of ESG Initiatives Corporate Information

Business Activities

Web
costs and improve safety at their logistics sites. Our dealers companies’ products into Japan, we are making a more Automobile
are also promoting improvements at their own facilities meticulous response to the needs of customers in the
to bolster their abilities to make improvement proposals country. (See Special Feature 1 on pages 18–21 for details of In the fields ranging from vehicle to engines, car air-conditioning compressors and car electronics,
to customers. We will promote these and other efforts as collaboration among the three companies.) Toyota Industries continues to meet the expectations and trust of its customers. Link to product
details.
customers’ total logistics solutions partner.
In the field of after- Bastian
sales services, we are On the back of strong needs for logistics automation not Strengths Opportunities
proceeding with the only in the e-commerce sector but also in the manufacturing • An agile structure to undertake all aspects from planning and development to • Increasing needs for energy-saving products due to stricter environmental
introduction of the and retail sectors in North America, Bastian has been production within a plant (Vehicle) regulations and growing environmental consciousness
Global Mobile Service receiving orders from customers in a broad range of business • Highest-level production efficiency and quality among all Toyota-affiliated • Sales expansion in each sector in line with growth of the automobile market
Solution (GMSS) that categories and expanding sales. automobile body manufacturers (Vehicle)
leverages Internet of Based on a wealth of know-how accumulated in • Know-how on the development and production of diesel engines and turbochargers Risks
GMSS mobile service system (Engine)
Things (IoT) technology. small- to medium-scale projects, Bastian has increased its • Shrinking of the automobile market caused by economic slowdown
GMSS centrally manages capabilities for large system development and integration, • Highly efficient production of high-quality gasoline engines, including those for use • Customers becoming less willing to buy energy-saving products following less
in hybrid vehicles (HV) (Engine)
information on lift trucks owned by customers and the thereby successfully receiving an order for the largest project stringent environmental regulations
• Ability to develop excellent products with greater fuel efficiency, quieter operation,
history of repairs conducted by dealers in each country by in its history in 2019. Working together with TMHJ, Bastian • A drop in product competitiveness due to the yen’s appreciation or a rise in raw
compactness, light weight and ease to mount on vehicles (Car air-conditioning
using cloud services. Through this system, we will reinforce has rolled out ULTRA, an automated system leveraging its material costs
compressor)
our capability to provide better after-sales services. We are strengths in developing cutting-edge technologies, in the • Suspension of production caused by supply chain disruptions
• Global top-share*1 products for use in a full range of vehicles, from internal-
also utilizing telematics to collect operational information Japanese market. combustion vehicles to HVs, plug-in hybrid vehicles (PHV), electric vehicles (EV)
of lift trucks. The aim is to minimize downtime by analyzing In North America, Bastian has been accelerating its and fuel cell vehicles (FCV) (Car air-conditioning compressor)
this information to foresee and prevent equipment failures. offering of logistics solutions to lift truck users by reinforcing • Monozukuri (manufacturing) using equipment created in-house to produce
Additionally, we established T-CORE, a new system to collaboration with dealers of the TOYOTA and RAYMOND high-quality products and flexibly accommodate changes in production volume
(Car air-conditioning compressor)
share customer information, lift truck specifications and brands.
• Higher technological capabilities accumulated through the development and
production data with our dealers by using cloud services. production of products for Toyota Motor Corporation (TMC), external sales and
Dealers in each country will use this system when placing Vanderlande internal use (Car electronics)
orders to Toyota Industries. Going ahead, we will share with In Europe and the United States, an expansion of the • Development, production and top-level quality of electronic parts and devices for
our local dealers information of our lift trucks throughout e-commerce market and labor shortages have caused a electrified vehicles (Car electronics) *1: Survey by Toyota Industries Corporation
their lifecycle by linking GMSS, telematics and T-CORE, sharp increase in needs for automated systems. Under
thereby establishing a system to ensure a quick response to such conditions, Vanderlande steadily increased orders
customers. from and sales to warehouse logistics and parcel/postal
As the leading manufacturer of materials handling services, obtaining orders related to the establishment of
equipment, Toyota Industries will offer comprehensive new distribution centers as well as long-term servicing
logistics solutions and satisfy the diverse logistics needs of contracts from leading global operators of e-commerce, retail
customers. and delivery services. In the warehouse logistics business,
*8: ALOMA is a Toyota Industries term for Asia, Latin America, Oceania, Middle East and in particular, Vanderlande has been reinforcing system
Africa. development targeting industry’s
top companies and focused
business categories according
Activities of TALG to its basic business strategy.
Recently, orders have been
Logistics System Engineering Department growing from the apparel
of Toyota Material Handling Japan industry for solutions FY2019 FY2020 FY2019 FY2020
Operating
613.8 billion 17.2 billion
In Japan, the installation of logistics systems that bring about leveraging its pocket sorter Net Sales
labor and work savings in distribution centers has been to pick and sort goods into Pocket sorter ¥610.7 billion ¥ Profit ¥6.8 billion ¥
proceeding rapidly in line with the exacerbating issue of labor hanging pockets.
shortages. Toyota Industries is enhancing its product offering In the airport business, Vanderlande obtained orders for
throughout the entire logistics operations by introducing systems for new terminals from existing airport customers
systems and equipment of Bastian and Vanderlande into as well as long-term servicing contracts based on its long- Vehicle Sales Engine Sales Compressor Sales
(Thousand units) (Thousand units) (Million units)
Japan. standing relationships of trust. The company is working to 350 900 35
Bastian’s ULTRA automatic truck loading and unloading further augment such relationships.
800
robot has started operating at a customer’s logistics site Vanderlande is also promoting collaboration within the 300 30
and has already contributed to improved work efficiency. Toyota Industries Group, working together with the Logistics 700
250 25
We also accept orders for System Engineering Department of TMHJ and Bastian to 600
Vanderlande’s high-speed introduce its systems into the markets in Japan and North 200 500 20
CROSSBELT SORTER and America, respectively. 150 400 15
engage in sales negotiations
300
for the company’s ADAPTO, 100 10
200
a high-speed storage and 5
50
retrieval system. With Toyota 100
Industries supporting the ULTRA 0 0 0
(FY) 16 17 18 19 20 (FY) 16 17 18 19 20 (FY) 16 17 18 19 20
introduction of the two

30 Toyota Industries Report 2020 31

 Company Introduction Strategies and Businesses Promotion of ESG Initiatives Corporate Information

Business Activities

Vehicle accomplishment for successfully improving the painting way to the era of zero emissions by pursuing the Gasoline Engines for Automobiles
process that accounts for about 60% of the plant’s total CO2 further evolution of internal-combustion engines and Our Toyota New Global Architecture (TNGA)*3 gasoline
emissions. It also has the added effectiveness as it could developing new, globally top-level technologies and engines, namely the 2.5-liter A25A and 2.0-liter M20A, are
Medium-Term Direction of Business be applied to other plants, including the Takahama Plant products that also respond to car electrification. mainly fitted in the RAV4 manufactured at the Nagakusa
We will contribute to TMC as a development and producing materials handling equipment. We will continue to Plant in Aichi Prefecture. Developed based on the TNGA
production base of compact sports utility vehicles (SUV) undertake activities to eliminate the wasteful use of energy concept, these engines
by leveraging our comprehensive strengths derived through focused investigation and analysis. offer both excellent
from the highest level of safety, environment, quality, Business Overview in Fiscal 2020 driving performance
cost and delivery (SEQCD) among all Toyota-affiliated Thanks to the growth in sales of engines, including and environmental
automobile body manufacturers and through greater new A25A and M20A gasoline engines, unit sales in performance. Responding
collaboration within the Toyota Industries Group. fiscal 2020 totaled 807,000 units, an increase of to the advancement of car
214,000 units, or 36%, over the previous fiscal year. electrification, we have also
Net sales increased by ¥14.0 billion, or 13% year on added an HV version of the
year, to ¥122.4 billion. A25A engine to our lineup.
Business Overview in Fiscal 2020 We will improve product
The automobile market remained on par with the quality and productivity
previous fiscal year in Japan, but sales declined in Highly Acclaimed by Customers Worldwide further and contribute to
other parts of the world. Diesel Engines for Automobiles the creation of “ever-better 2.5-liter A25A engine for HVs
In fiscal 2020, unit sales increased by 39,000 Toyota Industries’ diesel engines are mounted in a variety of cars” by TMC both through
Toyota Industries representative receiving the award from
units, or 14%, over the previous fiscal year to METI State Minister Hideki Makihara Toyota vehicles, including the Toyota Land Cruiser series, diesel engines and gasoline
324,000 units on the back of growing sales of the the world’s renowned full-fledged four-wheel drive (4WD) engines.
new RAV4, production of which was launched in model, and TMC’s Innovative International Multipurpose *3: Development policy and method for vehicle creation based on a modular platform
November 2018. Net sales also increased by Receiving an Excellent Karakuri Kaizen Vehicle (IMV) series targeting emerging countries. Their
¥7.5 billion, or 9% year on year, to ¥89.9 billion. Award high performance and reliability have gained strong market Engines for Use in Industrial Fields
At the Karakuri KAIZEN*2 Exhibition 2019 hosted by the recognition. Currently, our mainstay products are in-line Toyota Industries’ engines are highly renowned for their
Japan Institute of Plant Maintenance, a project of Toyota 4-cylinder GD diesel engines and V-type 8-cylinder VD reliability and excellent environmental performance in
RAV4 Designed, Developed and Produced Industries was selected among 454 projects of 110 diesel engines. GD diesel engines equipped with a industrial fields as well. These engines are used for a wide
by Toyota Industries Selected as the Car of companies and received an Excellent Karakuri Kaizen turbocharger specifically and optimally designed and variety of applications, including our lift trucks, and adopted
the Year Japan Award. The project, undertaken by the Painting Section of manufactured in-house are manufactured in Japan and by by many customers such as GHP*4 manufacturers in Japan
The new Toyota RAV4, TMC’s global strategic vehicle that the Manufacturing Department in the Vehicle Division, was Toyota Industries Engine India Pvt. Ltd. (TIEI), a consolidated and CHP*5 manufacturers worldwide. These engines offer
made a comeback to the Japanese market, received the recognized for its safe, secure and comfortable karakuri subsidiary in India. downsized displacement compared with conventional models
Car of the Year Japan 2019-2020 award for its capabilities mechanical device that resolves problems facing painting with equivalent output, resulting in higher
as an SUV of the new era to satisfy every need of users at operators and suppliers in relation to the 3Ms (muri, mura TO PIC fuel efficiency, cleaner emissions and a
a high level. The RAV4 became the first Toyota vehicle to and muda: literally translated as overburden, unevenness reduction in size. Web
receive the award in a decade. and waste). *4: Short for gas heat pump; air conditioner driven by a gas
Toyota Industries was involved in exterior and interior *2: Achieving kaizen (improvement) at low cost by karakuri (Japan’s traditional, non-
Launched Production of a New engine
Link to product details.
design and upper-body development of the vehicle and powered mechanical systems that utilize gravity, the principle of leverage, etc.) Turbocharger Realizing Higher Output of *5: Short for combined heat and power; co-generation system

undertakes production of the RAV4. We will continue to GD Diesel Engine

pursue vehicle In March 2020, Toyota Industries launched
planning and production of a new turbocharger that realizes higher
development as output of the Toyota GD diesel engine to be mounted
well as assure on such vehicles as TMC’s IMV series sold across the
quality in a way world. The new turbocharger provides considerably
to meet the better performance through the adoption of new
expectations of technologies, such as a ball bearing-type system and
customers. Award-winning RAV4
a newly designed impeller and turbine wheel, and has
successfully achieved a dramatic increase of around
Winning a Minister of Economy, Trade and 15% in the output of the engine without changing its
Industry Award in the 2019 Energy basic components. We will continue to improve the
Two Toyota Industries’ representatives Toyota 1ZS diesel engine and turbocharger
Conservation Grand Prize receiving the award (on the right)
basic performance of our turbochargers and offer
The Nagakusa Plant, a vehicle assembly base in Aichi diesel engines with even greater competitiveness.
Prefecture, has implemented a comprehensive energy-
saving initiative to reduce heat dissipation loss in the drying Engine Seeking Engines with Greater Product
process of electrodeposited vehicle painting and cut down Appeal
its annual CO2 emissions by 391 tons. In recognition of this Following the Paris Agreement adopted in December 2015
at the 21st session of the Conference of the Parties to the
initiative, Toyota Industries received a Minister of Economy, Medium-Term Direction of Business
Trade and Industry Award in the Industrial Field, which is United Nations Framework Convention on Climate Change
In line with more stringent environmental regulations
the highest award in the Energy Conservation Grand Prize (COP21), and with some countries announcing their shift
adopted globally, there is a growing demand for
program (Energy Saving Projects Category) run by the from internal-combustion vehicles to electrified vehicles, there
engines with even greater fuel efficiencies and cleaner
Energy Conservation Center, Japan, in 2019. has been a growing need for engines with even greater fuel
emissions. Amid this environment, we aim to pave the High-output GD diesel engine and new turbocharger
We believe that the initiative was an excellent efficiency and cleaner emissions for HVs, PHVs and other

32 Toyota Industries Report 2020 33

 Company Introduction Strategies and Businesses Promotion of ESG Initiatives Corporate Information

Business Activities

electrified vehicles as well. More stringent fuel efficiency standards have been Establishing Stronger Global Production aim of increasing our production efficiency further, we have
Diesel engines, on the other hand, enjoy an enduring enforced across the world, pushing the need for higher and Supply Structures also set up a system that allows design and production
popularity particularly as a power unit suited for SUVs and fuel efficiency both for internal-combustion vehicles Currently, the car air-conditioning compressor market engineering departments to work as one team to design
such commercial vehicles as pickup trucks, as they offer and electrified vehicles. Our variable-displacement type remains unstable due to weak automobile sales, even mixed production lines to manufacture a wide variety of
excellent basic performance of high fuel efficiency and high compressors for internal-combustion vehicles, which are though growth is expected over the medium term. The products while increasing production capacities in a phased
torque at low speed. renowned for high fuel efficiency and reduced weight, move toward more stringent fuel efficiency regulations manner.
Aiming for further evolution of internal-combustion have been adopted by the world’s leading automakers, and car electrification has also prompted the possibility
engines, we will continue to seek the world’s highest-level including Toyota Motor Corporation, Daimler AG, General of fluctuating demand for compressors both for internal-
combustion efficiency and develop more fuel-efficient and Motors Company (GM), Volkswagen AG and Hyundai Motor combustion vehicles and electrified vehicles. In response,
cleaner engines. Company. we are building a production structure less vulnerable to
TO PIC
In the United States, our SES series became the first changes in production volume through such measures
compressor*6 to be approved under the country’s off-cycle as automating our plants to save labor and implementing
Car Air-Conditioning Compressor credits program. The program gives off-cycle credits to flexible shifts in production operations. Meanwhile, we Since launching the world’s first mass production
technologies that can effectively improve fuel efficiency expect the rapid spread of electrified vehicles in China driven of electric compressors in 2003, Toyota Industries
under its emissions regulations. We have since been by the country’s new energy vehicles (NEV) regulation*7. has maintained the world’s top share*8 for electric
Medium-Term Direction of Business working to increase the number of models equipped with Accordingly, we will promote the local production of electric compressors and manufactured approximately 20
In the Car Air-Conditioning Compressor Business, we the SES series compressors. compressors to capture booming demand. million units to date. Previously, we had manufactured
will leverage our core compression technology and For electric compressors, we are differentiating their *7: Regulation in China mandating automakers to produce a certain percentage of EVs
these compressors only in Japan, but in response
become an innovative component supplier in a future performance by leveraging our original evaluation and and other new energy vehicles to the growing demand in China, initiated local
society where car electrification and the use of analysis techniques and know-how. Specifically, we production at TD Automotive Compressor Kunshan
autonomous technology are expected to advance are working to add even greater competitiveness to Increasing Competitiveness by Creating Co., Ltd. (TACK) in March 2020. There is also a
rapidly. our products. Efforts include improving efficiency that Production Facilities In-House plan to launch production at Yantai Shougang TD
In the field of car air-conditioning compressors, we affects the driving range of electrified vehicles; adopting Achieving high levels of fuel efficiency and reliability requires Automotive Compressor Co., Ltd. (YST) in the future.
will further enhance our capability to develop products countermeasures against electric waves specific to high-precision processing technologies for compressors for By installing production lines that have been refined
that offer excellent fuel efficiency, quieter operation, electrified vehicles; and achieving quieter operation. We are both internal-combustion vehicles and electrified vehicles. for higher quality and productivity at a mother plant
compactness, light weight and ease to mount on also augmenting our support capabilities for automakers Toyota Industries realizes high-speed and high-precision in Japan to bases in China, we will ensure stable
vehicles. In addition, with the aim of satisfying needs of through our solution offering to solve diverse noise and machining by leveraging its know-how accumulated through production at a high quality level.
*8: Survey by Toyota Industries Corporation
a broader variety of customers, we will utilize our vibration issues of the entire vehicle. Besides Toyota, Ford responding to the stringent demands of automakers
accumulated technologies to expand our development Motor Company, Renault worldwide and by developing devices from processing
domain into core components for drive systems. S.A.S., Honda Motor Co., machines to associated cutting tools in-house. With the
Ltd., Nissan Motor Co.,
Ltd. and other automakers,
which are already using
Business Overview in Fiscal 2020 our electric compressors in Worldwide Bases of Car Air-Conditioning Compressors (As of March 31, 2020)
In fiscal 2020, unit sales of car air-conditioning their respective HVs, PHVs
compressors decreased 1.95 million units, or 6%, and EVs, we will continue
from the previous fiscal year to 31.03 million units. to ramp up our efforts
Despite an increase in sales in Japan, unit sales were to expand sales to other TDDK
negatively affected by lower sales in North America automakers around the DNDE Germany
and Europe due primarily to the impact of the world. Germany
MACI
COVID-19 pandemic. Net sales were down ¥18.1 *6: S
 urvey by Toyota Industries
ESB20 electric compressor YST DICH
U.S.A. DIAM
billion, or 5%, from the previous fiscal year to Corporation China China
¥328.1 billion. U.S.A.

Developing Next-Generation Products TICO

Following car electrification and widespread use of DNTS
TACG
Japan
Development Efforts Centered around autonomous driving technology, there has been a growing Italy
U.S.A.
Energy Savings and Car Electrification need to cool electronic devices, batteries and other key SUBROS TACK
Even though growth in the car air-conditioning compressor heat-emitting components. In response, we are developing TICA
India China
market is currently slowing down due to weak sales of compressor models with increased cooling capability in order U.S.A.
automobiles, we expect continued growth over the medium to use their cooling function not only for vehicle interior air TACI
term on the back of the expanding automobile market conditioning but also for key components. Additionally, we
Indonesia DNBR
and an increase in the number of vehicles fitted with an air are making our electric compressors compatible with varying
conditioner. The market of electrified vehicles, in particular, voltage and capacity needs and increasing their reliability Brazil
is expected to accelerate growth gradually in and after through multifaceted evaluations using our evaluation
2020 as automakers roll out new models. In order to facilities created in-house and a test driving course. Consolidated production bases Licensed manufacturers Technical service stations
reinforce our development and production structures, we will Besides this cooling functionality, we intend to utilize Toyota Industries’ car air-conditioning compressors are widely adopted by automakers around the world, garnering the No. 1*9 position in global sales.
*9: Survey by Toyota Industries Corporation
channel resources into both types of compressors, namely our core technologies to expand our business domain
compressors for internal-combustion vehicles, which are still into components for drive systems. Currently, we engage
mainstay products for the time being, and compressors for in production of an oxygen-supplying air compressor and
electrified vehicles, for which we anticipate stronger demand hydrogen circulation pumps for FCVs and are promoting
over the medium to long term. development of next-generation products.

34 Toyota Industries Report 2020 35

 Company Introduction Strategies and Businesses Promotion of ESG Initiatives Corporate Information

Business Activities

Web
Car Electronics of high-voltage batteries in vehicles and is necessary for Textile Machinery
charging EVs and PHVs, for which the market is expected
to expand in the future. We offer chargers compatible with a Carrying on the philosophy of founder Sakichi Toyoda, which reflects his strong commitment to
Medium-Term Direction of Business wide range of voltages to enable their use in various parts of manufacturing, Toyota Industries responds to a broad range of needs with its extensive product lineup, Link to product
details.
Car electrification is steadily progressing in keeping with the world. from air-jet looms, for which we enjoy the world-leading market share* in unit sales, to ring spinning
the enforcement of more stringent environmental In addition, we have been contributing to the frames and roving frames. * Survey by Toyota Industries Corporation

regulations and growing energy-saving consciousness advancement in car electrification by developing a rear
among customers. The Electronics Division will inverter for electric 4WD vehicles and public charging stands Strengths
for PHVs and EVs. Air-Jet Loom Sales
contribute to car electrification in a broad range of • Broad product lineup both in the spinning and • World-leading market share* in unit sales of air-jet
(Thousand units)
fields, from offering on-board power source devices to 10
weaving machinery fields looms
improving social infrastructure through the provision of Use of an Electrified Vehicle as a Power • Global, well-developed service network • Ability to develop products that excel in reliability,
Source energy-saving performance and versatility
charging stands and systems to feed electricity 8
externally. In recent years, there has been a growing public attention to Opportunities
6
the use of high-capacity batteries of electrified vehicles as a • A rise in textile demand in line with an increase in • Further increasing applications in industrial textile
power source. 4 the world population products
Toyota Industries recognized early on the use of • Increasing need for high-quality and highly functional yarn and textile products, following the economic
2 growth of emerging countries
Business Overview in Fiscal 2020 electricity stored in vehicle batteries as a power source
Risks
Net sales of car electronics products expanded, and developed an on-board AC inverter in 1995. It was 0
the world’s first model*10 to be mounted on a vehicle while (FY) 16 17 18 19 20 • Changes in each government’s policies concerning • Weaker sales due to intensifying competition
primarily supported by sales of DC-DC converters
in production. Since then, production volume has been promotion of the country’s textile industry
and on-board chargers mainly to TMC. • A decline in capital investment due to economic slowdown and raw cotton and/or yarn price fluctuations
increasing and reached a cumulative total of 30 million units
in June 2019.
The 1.5-kW type, in FY2019 FY2020 FY2019 FY2020
Contributing to Car Electrification particular, can operate Operating
Toyota Industries develops not only DC-DC converters,
on-board chargers and AC inverters in the field of on-board
appliances that require more
power, such as rice cookers
Net Sales
¥76.3 billion ¥ 61.7 billion Profit ¥7.3 billion ¥ 2.9 billion
power source devices but also rear inverters in the field of and hot plates, and has
core components for drive systems and charging stands. In drawn much attention as an Taking Part in the Largest International
addition to TMC, we are promoting new business to other emergency power source Medium-Term Direction of Business Textile Machinery Trade Show in the World
automakers across the world. in a disaster in addition to With growing environmental consciousness worldwide, In June 2019, Toyota Industries participated in ITMA 2019
camping, outdoor events needs are expected to increase further for textile international textile machinery trade show held in Barcelona,
and other applications. 1.5 kW AC inverter
machinery offering superior environmental performance. Spain.
Immediately following Toyota Industries’ products are highly acclaimed by We exhibited the JAT810 air-jet loom, for which we
Typhoon Faxai in 2019, customers for their excellent reliability and productivity enjoy the world’s top share in unit sales, and demonstrated
many vehicles fitted with this inverter were put to use across as well as energy-saving performance. We will continue high-speed weaving of complex-patterned fabrics using our
Japan to supply electricity during prolonged power outages. to develop energy-saving and other innovative original electronic shedding device. We also showcased our
We will continue to promote the development of technologies and seek to achieve further growth and next-generation air-jet loom that captures the future needs
inverters as a key component that adds new value to evolution as a leading manufacturer of textile machinery. of textile plants for automation, use of IoT and environmental
electrified vehicles, along with other products such as response. These products received favorable feedback
vehicle-to-load (V2L) systems*11 capable of supplying a from many visitors. At the booth of Uster Technologies AG,
large amount of electricity. a Switzerland-based consolidated subsidiary manufacturing
DC-DC converter On-board charger *10: Survey by Toyota Industries Corporation Business Overview in Fiscal 2020 quality measurement instruments for fiber, yarn and fabric,
*11: S
 ystems and equipment designed to use the power accumulation and generation The textile machinery market was weak in Asia, we exhibited the latest measurement instruments, which
capabilities of HVs, PHVs, EVs and FCVs to feed power to electric appliances
including China, our primary market. Unit sales of drew much attention from visitors. Through various textile
A DC-DC converter converts the high voltage of HV, air-jet looms decreased 2,200 units, or 24% year on machinery exhibitions, we will continue to appeal to
PHV and EV batteries into a lower voltage level to supply year, to 6,800 units. Combined with a decrease in customers our technological capability to meet their needs
power to standard electrical sales of quality measurement instruments for fiber, and reinforce our brand strength.
devices such as lights and yarn and fabric, net sales were down ¥14.6 billion, or
wipers. Our DC-DC converters 19%, from the previous fiscal year to ¥61.7 billion.
are fitted in the Prius, Aqua and
other major electrified vehicles.
By utilizing such technologies Growing Needs for Air-Jet Looms
as the world’s first thick copper V2L Toyota Industries’ air-jet looms are adopted by customers
substrate*10, we have reduced in China, India and many other countries. Produced fabrics
the volume and weight of the Evacuation shelters, are used broadly for towels, shirts and other clothing
school gymnasiums, etc.
product. In December 2019, we purposes as well as in industrial products such as materials
Staff who participated in the trade show Uster’s booth
also started production of a DC- for electronic substrates and vehicle airbags. Recently, an
DC converter for the new Yaris. Sub-stand Main control TMC’s SORA FC bus and V2L increase in mobile electronic devices has driven the need for
An on-board charger stand fabrics of woven glass fiber for use in electronic substrates,
converts AC voltage from the Charging stand for PHVs and EVs and it is anticipated that applications for air-jet looms will
power grid into DC voltage expand further.

36 Toyota Industries Report 2020 37

 Company Introduction Strategies and Businesses Promotion of ESG Initiatives Corporate Information

Corporate Governance

Promotion of ESG Initiatives

of Directors to resolve important management matters and Appointment of Independent Members of
monitor the execution of duties by directors. We appoint Management
Further Promoting Initiatives to Sustain outside directors who have a wealth of experience and As a publicly listed company, Toyota Industries strives to
knowledge concerning business management. They attend ensure the fairness and transparency of management.
Growth in the Areas of Governance, meetings of the Board of Directors and give opinions Following the Securities Listing Regulations stipulated by
Society and the Environment and ask questions as deemed necessary based on their the Tokyo Stock Exchange and Nagoya Stock Exchange,
individual, wide-ranging experience and insights related respectively, to further enhance our corporate governance
to the management of globally operating companies and Toyota Industries has appointed as independent members
monozukuri (manufacturing). Through this supervisory of management two outside directors and two outside audit
function of outside directors, we ensure the legality and & supervisory board members who are deemed to have no
validity of the Board’s decisions as well as directors’ conflicts of interest with our shareholders.
Corporate Governance execution of duties from an objective perspective. The
Management Committee, which is composed of directors at Determination of Compensation for Senior
Corporate Governance Structure — P38–40 Internal Control System — P40 Compliance — P40–41 Information Security — P41–42 Risk Management — P42–43
the executive vice president level and above as well as senior Management and Directors
executive officers and other executives, deliberates on a Compensation for senior management and directors
variety of issues concerning important management matters consists of monthly salaries and bonuses. Our policy is to
Toyota Industries strives to enhance its corporate value in a stable manner over the long term and maintains society’s such as our corporate vision, management policies, medium- link their compensation with the business performance of
trust by earnestly fulfilling its social responsibilities in accordance with its Basic Philosophy. To that end, Toyota term business strategies and major investments. Toyota Industries, reflecting their duties and performance
Industries endeavors to further enhance its corporate governance in its efforts to maintain and improve management Toyota Industries has a divisional organization system, in compensation. Bonuses, in particular, are determined
with significant authority delegated to each business division. based on consolidated operating profit of each fiscal year
efficiency and the fairness and transparency of its corporate activities.
For especially crucial matters, however, we have established while comprehensively taking into consideration dividends,
the Business Operation Committee to enable the president employees’ bonus level, trends among other companies,
Corporate Governance Structure disclosure of information. to meet with the heads of each business division regularly medium- to long-term business performance and past
Basic Perspective on Corporate Governance More specifically, the following basic policies drive our to monitor and follow the status of their business execution. records of bonus payments.
Toyota Industries regards the most important managerial initiatives. At meetings of the Management Council, directors, audit & As procedures to determine compensation, we review
task is to earn trust broadly from society and enhance our (1) We seek to ensure shareholders’ rights and equality. supervisory board members and senior executive officers proposals based on this policy, exchange views and confirm
corporate value on a stable, long-term basis. We aim to (2) We seek to promote appropriate collaboration with convene to report and confirm the monthly status of business details at the Executive Compensation Committee, which
do this task based on our Basic Philosophy and earnestly stakeholders other than shareholders (including operations and share overall deliberations at Board of Directors includes independent outside directors, and submit these
fulfilling our social responsibilities. Our basic focus is on customers, business partners, creditors, local meetings and other management-related information. proposals to the Board of Directors for resolution.
contributing to the creation of an enriched society through communities and employees). In addition, issues pertaining to human resources, quality,
business activities, and we believe it is essential to cultivate (3) We seek to conduct appropriate information disclosure production, procurement and technologies are discussed Effectiveness of the Board of Directors and Its
good relationships with stakeholders, including shareholders, and ensure transparency. at the corresponding functional meetings. We have also put Evaluation
customers, business partners, creditors, local communities (4) We seek to perform the roles and duties of the Board of in place committees to deliberate on more specific matters, Through interviews with outside directors and audit &
and employees. Directors appropriately in order to make decisions in a such as corporate social responsibility (CSR), the environment supervisory board members, Toyota Industries asks them
Accordingly, we strive to enhance our corporate transparent, fair, quick and resolute manner. and export transaction controls. These functional meetings to evaluate the effectiveness of the Board of Directors and
governance in order to maintain and improve management (5) We seek to promote a constructive dialogue with and committees discuss important matters and action themes collects their feedback. The results of their evaluation are
efficiency, fairness and transparency. For example, we have shareholders. in respective areas. Moreover, we strive to maintain and summarized below.
established a structure to quickly and flexibly respond to improve internal controls by establishing the Audit Department (1) Opportunities are provided to share information and
changes in the business environment and have been working Implementation Structure and conducting internal audits of Toyota Industries’ business hold discussions about management issues and other
to augment management oversight and ensure the timely Toyota Industries convenes monthly meetings of the Board divisions and departments as well as our subsidiaries. matters.
(2) Appropriate decision-making and management
Selection and Dismissal of Senior Management oversight are ensured by holding several discussions
Shareholders’ Meetings and Appointment of Director and Audit & on important matters prior to the resolution and by
Selection/Dismissal Selection/Dismissal Reporting Selection/Dismissal Reporting Supervisory Board Member Candidates reporting and following up on the progress after the
Cooperation
As our policies concerning selection (and dismissal) of senior resolution of these important matters.
Independent Auditors Audit & Supervisory Board
management and appointment of director candidates, we (3) The atmosphere is open, encouraging directors to freely
Reporting Board of Directors Monitoring
Executive Compensation carry out comprehensive evaluations from the viewpoint make comments and engage in lively discussion.
Committee *1: Functional *2: Committees
Accounting
Audit
Exchange of Opinions
Discussion/ Selection/Dismissal
Audit & Supervisory
Board Office
Monitoring
Meetings of placing the right persons in the right positions. We seek (4) Meeting materials are simple and clear, and
Executive Appointment
Committee Appointment/Monitoring Reporting Cooperation Cooperation
Human Resources CSR
a balance between making sound and quick decisions, explanations are right to the point.
Management Committee
managing risk appropriately and monitoring execution of As shown above, Toyota Industries’ Board of Directors
(Deliberates on important matters from management’s perspective) President Quality Environmental business operations and covering a specific function or has been evaluated as effective. In response to certain
Business Operation Committee
Production Export Transaction business division of Toyota Industries. feedback calling for further improvement, we will undertake
(Follows up on the execution of business operations) Direction/ Reporting Controls
Supervision
Audit Dept.
In appointing audit & supervisory board member improvement efforts on a continuous basis.
Management Council
(Reports on and confirms execution of business operations) Procurement Safety and Health candidates, we also perform comprehensive evaluations from
Functional Meetings*1, Committees*2
Internal Audit
Technologies Profit Improvement
the viewpoint of placing the right persons in the right positions, Audit & Supervisory Board System
while ensuring a balance among the financial, accounting Toyota Industries has four audit & supervisory board
Senior Executive Officers These entities deliberate and and legal insights, knowledge on our business fields and the members, two of whom are full-time members and two of
follow up on issues in respective areas.
Business Divisions/In-House Company/Departments diversity of perspectives on corporate management. whom are outside members.
Based on these policies, we review proposals, exchange The four members attend meetings of the Board of
Subsidiaries/Affiliates
views and confirm details at the Executive Appointment Directors and provide their opinions as appropriate. The
(As of June 9, 2020)
Link to Committee, which includes independent outside directors, and full-time members also attend other important meetings to
the report.
Toyota Industries’ Corporate Governance Reports are available at its Website (in Japanese). submit these proposals to the Board of Directors for resolution. receive reports on the execution of duties by directors and

38 Toyota Industries Report 2020 39

 Company Introduction Strategies and Businesses Promotion of ESG Initiatives Corporate Information

Corporate Governance

other responsible persons. They also carry out on-site audits independent auditors and judged fair in their Internal Control system to report and seek consultation on compliance- a compliance officer (outside Japan) to lead and promote
at the Head Office, major business sites and subsidiaries as Audit Report. related issues. In Japan, North America, Europe and China, in autonomous activities in respective communities. In North
necessary and collaborate with independent auditors and the particular, we operate a compliance hotline (external helpline) America, Europe, China and Asia/Oceania, compliance
Audit Department for overall audits. Compliance that allows employees and other relevant parties to seek officers regularly hold conferences and facilitate collaborative
Meetings of the Audit & Supervisory Board are held every Basic Perspective and Implementation Structure advice from external experts on compliance-related matters activities within each region.
month to share information on audits conducted by the We believe that compliance means both adhering to laws and without being exposed to negative consequences. In fiscal In fiscal 2020, we held the second Compliance
full-time members with the outside members and to receive regulations as well as ethics and social norms. As such, it is 2020, we received 86 reports and inquiries from within Toyota Officer Meeting in India with compliance officers from four
reports from directors, responsible persons and independent vital to promote compliance throughout the Toyota Industries Industries and from its consolidated subsidiaries in Japan on companies to share information on the Code of Conduct of
auditors. At these meetings, the members also discuss and Group under the leadership of top management. such matters as labor management, working environment and each company, best
make decisions on important matters, such as audit policies To promote compliance, we have established the ethics. After verifying each report and inquiry, we have taken practices of compliance
and plans, the audit method used by independent auditors Compliance Subcommittee (led by the head of the appropriate action regarding each case. Our responses have activities and updates
and the appropriateness of their audit results. Corporate Headquarters) as a subordinate organization to been reviewed and judged appropriate by external lawyers. to relevant laws.
the CSR Committee (led by the president). Every year, the In fiscal 2017, we also set up a hotline for our major Through these efforts,
Initiatives for Enhancing Corporate Governance subcommittee formulates an action policy that covers the business partners to report and inquire about possible they work together to
1971 Introduced a divisional organization system entire Toyota Industries Group and conducts a follow-up compliance violations by Toyota Industries employees. increase the level of
2006 Reduced the number of directors (from 30 to 17) check on the progress of corresponding activities twice Through these initiatives, we ensure the early discovery compliance throughout
2006 Introduced a managing officer system Second Compliance Officer Meeting in India
during that year. and prevention of issues and intend to become a “company their business in India.
2010 Appointed independent members of management on which society places greater trust.”
2016 Reduced the number of directors (from 17 to 11)
2017 Conducted an evaluation of the effectiveness of the Board of Formulating and Thoroughly Instilling the Code of Information Security
Directors Conduct Activities in the Toyota Industries Group Basic Perspective
2019 Revised executive management structure and reduced the Toyota Industries has formulated and distributed to Each consolidated subsidiary of the Toyota Industries Group We recognize that the personal information of customers,
number and rank of executives executives and all employees the Toyota Industries has set up a compliance committee (in Japan) and appointed employees and business partners as well as information
Corporation Employee Code of Conduct, which serves as concerning our technologies and sales activities are assets
conduct guidelines that should be observed by employees. Main Compliance Officers that need to be protected. Accordingly, with the aim of
Internal Control System Accordingly, we have been working to instill the Code through safeguarding our information assets and strengthening their
In accordance with the Companies Act, in May 2006 Toyota group training and other means. Consolidated subsidiaries Europe management, we have formulated the Basic Policies for
Industries’ Board of Directors adopted the Basic Policies in and outside Japan have formulated their own Code of Toyota Material Handling Europe AB Information Security.
for the Establishment of an Internal Control System (Basic Conduct appropriate to their respective business lines and
Policies) to ensure compliance, risk management as well as corporate cultures and have been providing Company-wide Andreas Lundh Basic Policies for Information Security
the effectiveness and efficiency of business operations by education once a year. United States (1) Legal compliance
incorporating these policies into each business segment’s Regarding bribery, which could have a significant impact We comply with laws and regulations related to information
Toyota Industries North America, Inc.
annual policies and day-to-day routine management. The on management, Toyota Industries has formulated the Global security while fostering awareness of them among employees.
CSR Committee, at its meeting held in March, assesses the Guidelines for Bribery Prevention. Particularly, in countries Sheena Seger (2) Maintaining a stable business foundation
progress made in implementing the Basic Policies in the high on the Corruption Perceptions Index, each company has We safeguard and manage information assets appropriately,
China carry out information security-related education and
year under review and determines actions for the coming developed internal rules in accordance with the applicable
Toyota Industries Management (China) Co., Ltd. enlightenment activities on an ongoing basis and seek to
year, including reviewing the implementation structure and laws in respective countries and been conducting activities
maintain a stable business foundation.
enhancing day-to-day operational management. to familiarize employees with them. As for antitrust laws, we Zhu Lingling
(3) Providing safe products and services
Furthermore, based on the Financial Instruments and operate a system to conduct a check and review before and
India We provide safe products and services to customers and
Exchange Law (so-called Japanese Sarbanes-Oxley Act after employees of Toyota Industries contact competitors society by implementing information security measures in our
(J-SOX)), we have established and appropriately operated an and have been cultivating awareness among employees Toyota Material Handling India Pvt. Ltd.
business activities, including development, design and
internal control system to maintain the reliability of financial for not acting in a manner that may possibly constitute a Pragya Sharma manufacture of products and services.
reporting. The system’s status and progress are reviewed by violation of antitrust laws. Moreover, we have designated a (4) Information security management
the Audit Department and audited by independent auditors. particular month as “Antitrust Law Compliance Month” since Vanderlande Group We build a governance structure to enforce and manage
We determine which Toyota Industries Group companies fall fiscal 2016 to carry out enlightenment activities at relevant Vanderlande Industries Holding B.V. information security and continue to promote and refine the
within the scope of J-SOX based on the degree of impact on departments. structure.
Carl Messemaeckers
the reliability of financial reporting. We determined that our In addition, we have created and disseminated e-learning
internal controls over financial reporting as of the end of fiscal materials on 49 topics in order to cultivate a deeper
2020 were effective, and accordingly, submitted an Internal understanding of compliance among employees of Toyota
Control Report in June 2020. The report was reviewed by Industries Corporation and our consolidated subsidiaries in Organization for Promoting Compliance and Information Security under the CSR Committee

Internal Control Assessment System (Based on J-SOX)

Japan and to create an environment in which employees CSR Committee
foster compliance consciousness on their own.
Activity reports Approval and instruction
Internal control activities undertaken by each Annual financial report
department and consolidated subsidiary Example Topics of e-Learning Materials
(Establishment and operation of internal controls)
Compliance Subcommittee (in charge of compliance) Information Security Subcommittee (in charge of information security)
Internal Control Report Compliance; Antitrust laws; Prevention of bribery; Human rights;
Various types of harassment; Safety behavior; Occupational accidents;
Mental health; Environmental protection; Management of confidential
Improvement of Detection of Review of internal information; Traffic safety; Product liability; Accounting process
internal controls deficiencies controls by Internal Control Audit Report
Audit Department Europe, North America and China
Regional headquarters
Consolidated subsidiaries Consolidated subsidiaries
Toyota Industries Corporation
in Japan outside Japan
Early Detection and Prevention of Issues via
Consolidated subsidiaries outside Japan
Audit on internal controls by independent auditors
Compliance Hotline
The Toyota Industries Group has in place a whistle-blower

40 Toyota Industries Report 2020 41

 Company Introduction Strategies and Businesses Promotion of ESG Initiatives Corporate Information

Corporate Governance

Implementation Structure Primary Activity Examples Response to Possible Major Earthquake

Toyota Industries has set up the Information Security Activities in fiscal 2020 We consider the impact of a major earthquake as one of
Subcommittee (led by an executive in charge of the General the most significant risks and have accordingly formulated
Administration Department) as a subordinate organization to • Enhancing security services for consolidated subsidiaries in Japan a business continuity plan. Based on the three basic
the CSR Committee to reduce information security risks. • Facilitating tools (measures) to support actions against leakage of policies of placing maximum priority on human life, placing
confidential information
To thoroughly implement the initiatives adopted by the • Extending the target group of participants for information leakage top priority on the recovery of local communities and
subcommittee, we appoint information security managers*1 response training ensuring the quickest possible recovery, we are making
and information security administrators*2 at each department • Increasing the frequency of e-mail security training (once a year/ Company-wide efforts in three relevant areas, specifically,
of Toyota Industries. person to four times a year/person) “precautionary, pre-disaster mitigation,” “initial response to be Aggregating information within a plant Reviewing policies on how to return home
• Conducting information security audits at consolidated subsidiaries
For consolidated subsidiaries around the world, we followed immediately after the disaster” and “restoration of
outside Japan
regularly hold meetings of information technology (IT) • Performing a more stringent check on information devices brought production.”
managers in each region to share information on security into the plant premises from outside 2. Initial Response Training at Plant Response
incidents and countermeasures both in and outside the Toyota • Providing information security education to on-site plant workers Disaster Prevention Structure Headquarters
Industries Group and to disseminate relevant policies. Through *3: Security guidelines of the Toyota Group, which conform to the Cyber Security Framework
We strive to reinforce our disaster prevention structure to In fiscal 2020, we continued to focus on practical training
these and other measures, we are increasing the levels of of the National Institute of Standards and Technology (NIST CSF) and ISO 27000 series enable a smooth transition from the initial response stage to by using predetermined procedures and forms. Each Plant
security and security awareness throughout the Group. of standards for information security management systems the production restoration stage. Response Headquarters planned a drill, created a scenario
*1: Head of each department The Disaster Prevention Response Headquarters, led by and served as a moderator to confirm the actions that
*2: A person within the department, appointed by the head Risk Management an executive vice president and consisting of representatives should be taken by its head (plant manager) and members.
Basic Perspective from the functional departments at the Head Office, is By conducting training repeatedly, we intend to create a
Information Security Management Based on the Basic Policies for the Establishment of an responsible for collecting information from plants and other structure under which every member understands his or her
Information Security Monitoring and Incident Internal Control System in compliance with the Companies relevant parties and making Company-wide decisions based role and responds to the situation flexibly.
Response Act, Toyota Industries is working to strengthen regulations on the information collected.
To ensure the early detection of and prompt action against and a structure to promote risk management. We regard
cyberattacks, we have in place systems to monitor the the following aspects as the basics of risk management and Disaster Prevention Structure
security of PCs and all other terminals used within the implement initiatives accordingly. Disaster Prevention Response Headquarters (Established in Kariya Plant)
Toyota Industries Group and to respond to incidents 24 (1) Incorporating measures to prevent and reduce potential
hours a day, 7 days a week. Upon the occurrence of an risks into daily routines and following up on the progress
incident, we immediately report it to the president and of implementation Plant Response Key Facility Educational Sites Affiliated Companies
Headquarters e-Lab (information
senior management and share relevant information within (2) Ensuring quick and precise actions to minimize the systems headquarters)
Kariya Plant Company dormitories
Toyota Industries. We also share threat information with our impact on business and society when a risk becomes Obu Plant Company resort Suppliers
Analyzing damage information Confirming initial response actions

consolidated subsidiaries in and outside Japan to swiftly alert apparent Kyowa Plant Remote Sites facilities
Nagakusa Plant &
each company. Morioka Works
Tokyo Office
Toyota L&F Customer
Implementation Structure Takahama Plant Center Tokyo
Providing Education on Information Security Business divisions and other departments at the Head Hekinan Plant Toyota L&F Customer 3. Individual Training at Each Plant
Higashichita Plant Center Osaka
We believe that awareness among all executives, employees Office develop and promote annual action policies that Higashiura Plant TMHG Training Center
a) Power Restoration Drill
and contract employees is crucial in preventing information integrate measures to prevent and control risks related Anjo Plant (Handa) Based on the procedures to restore power supplies,
security incidents. Based on this belief, we provide training on to quality, safety, the environment, personnel, export including electricity and gas, which are essential in
targeted attacks via e-mail and after-action education more transactions, disasters and information security. Progress is restoring production activities, each plant conducts
than four times a year per person. We also send periodic assessed and followed up by each functional management Promoting Disaster Prevention at Home and genchi genbutsu (go and see for yourself) training on a
reminders internally using incidents that have occurred entity such as the CSR Committee and the Environmental Related Enlightenment Activities periodic basis. Through the training, we are identifying
elsewhere as examples. Committee. At the same time, functional departments at Starting from fiscal 2017, we have been undertaking problems and making improvements to step up our
the Head Office such as those responsible for quality, safety enlightenment activities for employees and their families as a efforts to ensure quick restoration activities.
Preventing Leakage of Confidential Information and the environment formulate rules and regulations and measure to promote disaster prevention and avoid disaster- b) System Restoration Drill
We strive to raise the level of information security by holding create manuals from a Group-wide perspective, including inflicted damage at home. Specifically, we encourage them We conduct system restoration drills jointly with Toyota
workplace meetings and conducting self-checks regarding consolidated subsidiaries. By confirming and following up to take three actions: preventing the overturning of furniture Industries IT Solutions, Incorporated, a consolidated
our information security practices. In terms of technological on the progress through operational audits and workplace and securing an evacuation route; deciding how to contact subsidiary engaged in development and operation of
measures, we implement a multi-layer defense that includes inspections, they provide support for raising the level of risk and where to meet with family members in a disaster; and information infrastructures and systems, and work to
encrypting PCs, restricting and monitoring the copying of files management at each business division and consolidated stockpiling emergency goods, food and other necessities. improve our readiness for quick restoration.
on recording media and preventing malware penetration and subsidiary.
data leakage caused by cyberattacks. We have also formulated the Risk Response Manual, Efforts to Cultivate Personnel to Engage in 4. Training for Identifying Disaster Damage
which defines our initial response to an emergency. This Disaster Prevention Activities We repeatedly conduct drills jointly with our affiliated
Conducting Information Security Audits manual lays out basic rules to be followed when a risk 1. Training at Disaster Prevention Response companies and business partners in order to familiarize
In accordance with the All Toyota Security Guidelines becomes evident. The aim is to ensure quick reporting to top Headquarters them with the use of IT tools to quickly identify the
(ATSG)*3, we biannually inspect the implementation management, perform an accurate assessment of the impact As one important role assigned to the Disaster Prevention damage status during a disaster.
status of information security at Toyota Industries and our on society and business activities and minimize damage Response Headquarters that oversees Company-wide
consolidated subsidiaries around the world in order to through appropriate actions. As a countermeasure to the disaster response, we conduct training in which employees Future Activities
maintain and improve the level of information security on a ongoing COVID-19 pandemic, we are making an appropriate collect information on damages to both inside and outside the Preparing for floods and other natural disasters in addition
continuous basis. response based on this manual. The content of the manual company premises, swiftly make decisions and disseminate to earthquakes has been gaining significance. Accordingly,
is reviewed and revised as deemed necessary in response to these decisions throughout Toyota Industries. In fiscal 2020, we will draw on our response measures that have been
changes in businesses and the surrounding environment. we conducted a drill assuming an earthquake occurring in implemented mainly for earthquakes and extend our efforts
the early hours of the morning as an effort to strengthen our to other disasters in order to increase our overall disaster
readiness against earthquakes around the clock. readiness.

42 Toyota Industries Report 2020 43

 Company Introduction Strategies and Businesses Promotion of ESG Initiatives Corporate Information

Relationship with Our Stakeholders

Relationship with Our Stakeholders

Relationship with Our Customers ————— P44–45 Relationship with Our Business Partners ———— P46 Relationship with Our Shareholders and Investors — P47 Preventing Occurrence and Recurrence of TO P I C
Defects
Relationship with Our Associates ————— P48–52 Relationship with Our Local Communities —— P53–54
If a defect is found in a product after its launch, the Quality
Toyota Industries’ five QC circles won a gold prize at
Assurance Department of the responsible business division
the International Convention on QC Circles in 2019,
Relationship with Our Customers takes the lead in examining and identifying the cause by
going back to its development, design and production
in which a total of 370 circles participated from 16
countries around the world. As an example, the
processes. We implement countermeasures both from the
Regarding quality as one of its material issues, Toyota Industries practices monozukuri (manufacturing) that project of Kirloskar Toyota Textile Machinery Pvt. Ltd.
process and technological aspects and revise our new
quickly responds to the diverse, ever-changing needs of customers. (KTTM), a subsidiary manufacturing textile machinery
product development process as necessary. Through these
in India, was recognized for its genchi genbutsu
measures, we strive to thoroughly avoid the recurrence of the
and data-based improvement of the productivity
defect in subsequent models.
of processing lines, which also resulted in personal
Additionally, we make efforts to prevent the occurrence
growth of the project members.
of defects in all products we develop and manufacture in the
“A product should never be sold unless it division head examines and approves whether the product future. As an example, we provide education to production
has been carefully manufactured and fully has reached the target quality level. bases in and outside Japan with an eye to preventing defects
tested in the commercial trial, with by improving work procedures and processes.
completely satisfactory results.” Quality Assurance Activities based on the
Carrying on the spirit of founder Sakichi Toyoda, Toyota Quality Guidelines Providing Support to Business Partners
Industries strongly believes that quality is the lifeblood of a Quality forms the basis of our operations. As such, we Since improving the quality of our products requires
company. Focusing on quality as one of our material issues formulated our Quality Vision, which defines our philosophy in concerted efforts with our business partners in and outside
and ensuring customer safety and reassurance are our most ensuring quality. Japan, we are strengthening joint quality assurance activities
important responsibilities to our customers and form the with major business partners.
basis of our approach to CSR. Quality Vision In each annual quality audit, we determine priority
Toyota Industries strives to maintain and improve the Each and every member of the Toyota Industries Group areas, conduct genchi genbutsu (go and see for yourself) Members receiving a gold prize
at the International Convention on QC Circles
total quality of our corporate activities, which encompasses makes sure to build in quality with ownership (Jikotei inspections to confirm the improvement status of the
not only “product quality” but also “marketing quality” and Kanketsu) at their own workplaces and positions to supply previously identified deficiencies and provide quality
“management quality.” “Product quality” is embodied in appealing products/services that exceed the expectations of education on items that should be reinforced in order to
the safety, eco-friendliness, durability, ease of use and customers around the world with safe and reliable quality. cultivate a deeper understanding of kaizen (improvement). by training QC circle instructors. As a venue for presenting
workmanship of our products, while “marketing quality” To foster voluntary quality improvement efforts of business activity results, we hold the Global QC Circle Convention
entails excellent sales and service in addition to these To achieve the goal of this vision, we issue the Quality partners, we have introduced a self-audit system, in which every year since 2015 and provide workshop sessions to
attributes and “management quality” further enhances our Guidelines, which identify priority quality-related issues to business partners satisfying our criteria perform in-house raise skills.
overall corporate image and brand strength in terms of all of be implemented in each fiscal year, to all production bases quality audits and autonomously improve their quality As for nurturing human resources who can take a
these attributes. in and outside Japan and engage in quality assurance assurance systems. In fiscal 2020, we again provided scientific approach, we launched a new program to provide
activities accordingly. The implementation status of these education to nurture next-generation quality leaders as part basic education on big data analysis in addition to the
Types of Quality Sought by Toyota Industries guidelines is reviewed by top management at the Quality of our ongoing efforts for human resources development at existing SQC education. With a particular focus on practical
Functional Meeting chaired by the head of the Production business partners. application, we designed an original curriculum and textbook
Headquarters*1 for identifying additional issues and devising These activities enable our business partners to attain the while keeping a balance between theory and practice. In the
Quality levels that countermeasures. Issues raised are followed up at meetings level of quality assurance required and establish a culture to next five years, we will educate more than 1,000 engineers
Ma lity
qua

customers truly ●Brand strength

nag

expect of the Company-wide Council of Heads of Quality Assurance foster quality assurance on their own. and simultaneously nurture core human resources in this
●Corporate image
em

Departments chaired by the head of the Quality Control area. Our ultimate goal is for all our engineers to possess
Ma

ent

Department*1. Promoting Human Resources and basic knowledge on big data analysis so that they can solve
r ke

●Sales
ting

●Service *1: As of March 31, 2020 Workplace Development problems using this technique.
qual

Product quality ●Logistics Toyota Industries provides systematic quality education to As described above, to reinforce our foundation for quality
it y

Quality Assurance Activities based on the Quality Guidelines all employees to help them acquire quality assurance skills assurance, we are promoting the development of human
Man lity
qua

●Safety Design
ufac

●Workmanship
●Eco-friendliness quality Checking and identifying issues of Implementing needed in actual operations. We have been soliciting creative resources and an open workplace based on the belief that
turin

Company-wide quality status and progress Company-wide

proposals to nurture human resources who think and act on manufacturing starts with nurturing excellent personnel.
g

●Durability in implementing the guidelines guidelines

●Ease of use Manufacturing capabilities
their own and create a better workplace through all-employee *3: Using statistical techniques to promote quality control and process improvements
Quality Functional Meeting Quality Vision
Quality roadmap kaizen activities, while at the same time promoting the
development of human resources who can take a scientific
“Every one of us should fulfill the roles Company-wide Council of Heads of
A
P approach to quality assurance through quality control (QC)
Quality Guidelines
assigned to us and deliver our best quality Quality Assurance Departments PDCA*2
cycle
circle activities and by using statistical quality control (SQC)*3
products to customers.” D
techniques and big data analysis.
Toyota Industries undertakes product development that C To date, we have received 15 awards for employees’
meets customer expectations by capturing market needs Quality assurance activities at creative ideas in the Creativity category in the Commendation
all bases in and outside Japan
and understanding how our products are actually used by for Science and Technology by Japan’s Minister of Education,
customers. Culture, Sports, Science and Technology. We have also
At Toyota Industries, development of a new product Quality Guideline 1 Quality Guideline 2 Quality Guideline 3 Quality Guideline 4 presented the results of our QC circle activities at QC circle
Quality assurance in Quality assurance in Quality assurance at Human resources/
entails defining specific goals to incorporate quality in every product development mass production business partners workplace development conventions both internally and externally and received
stage from product planning and design to production multiple awards for our accomplishments. Class providing basic education on big data analysis
preparation, production, sales and after-sales services. We *2: PDCA (Plan, Do, Check, Act) Our production bases outside Japan also promote kaizen
perform a design review (DR), which allows a product to efforts and human resources development through QC circle
proceed to the next stage only when a responsible business activities. We help them undertake independent activities

44 Toyota Industries Report 2020 45

 Company Introduction Strategies and Businesses Promotion of ESG Initiatives Corporate Information

Relationship with Our Stakeholders

Relationship with Our Business Partners Relationship with Our Shareholders and Investors
Toyota Industries encourages open procurement and seeks co-existence and co-prosperity with our business
We aim to obtain an appropriate company valuation in stock markets through timely, appropriate and fair
partners (suppliers) based on mutual trust. We also facilitate environmentally preferable purchasing, human
information disclosure while promoting good communications with shareholders and investors.
resources development, fair trade, disaster prevention activities for a possible major earthquake and other
disasters and more efficient purchasing.

Fair and Equitable Business Transactions appropriate sale of waste. These seminars were attended Basic Perspective Major Investor Relations Activities
based on an Open Door Policy by participants from affiliated companies and Hoeikai, an Toyota Industries continually carries out timely, appropriate
For institutional investors and securities analysts in Japan
We provide fair and equal opportunities to all potential organization consisting of our business partners. We also and fair information disclosure for shareholders and investors.
business partners. We comprehensively evaluate our work with Hoeikai to provide support to strengthen the In this way, we raise management transparency so that we •Quarterly financial results briefings •Individual interviews/visits
business partners based on such factors as quality, price, management platforms of member companies through obtain an appropriate company valuation in stock markets. •Small meetings •Teleconferencing •Business information sessions
•Facility tours •Issuing/delivering Toyota Industries Reports
adherence to delivery times, technological capabilities and Toyota Production System (TPS) activities in manufacturing We proactively provide not only information required under
management information. We also assess their initiatives for and QC circle activities. disclosure laws and regulations but also information on our For institutional investors outside Japan
safety, the environment and compliance as we strive for the Participants of Purchasing-Related Seminars
management policy and business activities. Also, we engage
•Individual interviews/visits •Teleconferencing
timely and stable procurement of excellent products at lower in various investor relations activities to facilitate productive
Risk management Affiliated companies Hoeikai •Participation in conferences hosted by securities companies
costs based on fair business transactions. (Persons) Subcontracting Law Toyota Industries Affiliated companies
dialogue with shareholders and investors. •Issuing/delivering Toyota Industries Reports
1,200
Co-Existence and Co-Prosperity based on General Shareholders’ Meeting For individual shareholders and investors
Mutual Trust 1,000 We hold our annual general shareholders’ meeting early •Company-hosted plant tours
We work hard to realize co-existence and co-prosperity with to avoid the date on which many companies hold their •Issuing/delivering notice of general shareholders’ meeting
800
our business partners based on mutual trust. Every year, we respective shareholders’ meetings so that more shareholders •Issuing/delivering business reports
hold procurement policy meetings and top manager seminars 600 can attend. We are further facilitating the exercise of voting
for major business partners to facilitate mutual understanding rights of our shareholders by allowing them to exercise such
and cooperation. In addition, we provide such programs as 400 rights via the Internet and by joining the electronic voting
quality control and technical skills training, guidance directed platform for institutional investors.
toward kaizen at their production sites and safety and health 200 We held our 141st General Shareholders’ Meeting on
education throughout the year. June 11, 2019, in which 483 shareholders participated.
0
(FY) 16 17 18 19 20 Following the general shareholders’ meeting, we invited
Reducing Environmental Impact through our shareholders for a tour of a plant that manufactures our
Environmentally Preferable Purchasing Realizing Fair Trade throughout the Supply mainstay lift trucks and a tour of the Toyota Commemorative Information session for our electric compressor business (December 2019)
We aim to procure parts, raw materials and equipment Chain Museum of Industry and Technology established as a joint
from business partners that give As part of efforts to realize fair trade throughout the supply project of the Toyota Group to foster a better understanding
sufficient consideration to the chain, Japan’s Ministry of Economy, Trade and Industry has of our business activities.
environment. announced an action plan for proper management of molds Returning Profits to Shareholders
In the sixth edition of our for parts. In response, Toyota Industries has set up a mold Investor Relations Activities Toyota Industries regards ensuring shareholder benefits as
Environmentally Preferable management project and examined how we can “reduce At the financial results briefing, we mainly explained our one of the most important management policies.
Purchasing Guidelines, we added molds, revise management and establish new systems” as newly formulated Vision 2030 and our recent focus on the Accordingly, we strive to continue paying dividends at
the aspirations in 2050 of our stipulated in the action plan. In fiscal 2020, we laid down Logistics Solutions Business and electrification efforts. In the consolidated dividend payout ratio of roughly 30% and
Environmental Vision. Accordingly, clear rules for mold management and shared them with our addition to accepting individual interviews with analysts and meet the expectations of shareholders upon comprehensively
we have been strengthening business partners, thereby completing our work concerning others, we hosted an information session for our electric taking into consideration such factors as business results and
environmental management the action plan. compressor business. The session included a tour of a plant demand for funds.
in our entire supply chain and as an opportunity to promote a deeper understanding of our For fiscal 2020, Toyota Industries increased annual cash
undertaking relevant initiatives Business Continuity Plan (BCP) Activities strengths in the development and production fields. dividends by ¥5.0 over the previous fiscal year and paid
throughout the product lifecycle. Environmentally Preferable In further promoting our BCP activities, we are making As for institutional investors outside Japan, we visit major annual cash dividends per share of ¥160.0 (interim cash
Purchasing Guidelines
concerted efforts with business partners to reduce investors to explain our management policies and growth dividend per share of ¥80.0 and year-end cash dividend
associated risks by implementing specific measures. In fiscal strategies. We also participate in conferences hosted in per share of ¥80.0). Given the slowing economy due to the
2020, to deal with frequent natural disasters in recent years, Japan by securities companies and hold individual meetings. spread of COVID-19, we made sure to pay the year-end
Please visit our Website for details
of our Environmentally Preferable
Web we extended the scope of our IT system-based damage Our Website provides our corporate history, overviews of cash dividend during May 2020 on the basis of the resolution
assessment from earthquakes to other natural disasters. We each business as well as product information and initiatives of the Board of Directors instead of basing our decision on
Purchasing Guidelines. the resolution of the General Shareholders’ Meetings as we
Link to the guidelines. will also identify business partners with flood risk based on to develop technologies for the future mainly for individual
hazard maps and take action accordingly. investors. usually do.
In the face of the spread of COVID-19, we have also Opinions and requests we collect through various means
Promoting Human Resources Development started implementing measures against infectious diseases in of communications with shareholders and investors are fed
We proactively provide education to enhance procurement order to reduce supply risks in our supply chain caused by an back to executives and relevant business divisions via the
knowledge both internally and externally. In fiscal 2020, excessive concentration of production at a specific site. Board of Directors and various committees to reflect them in
we again provided training on risk management, including our future business activities.
education on Japan’s Subcontracting Law, response to labor
issues that are closely related to their daily operations and

46 Toyota Industries Report 2020 47

 Company Introduction Strategies and Businesses Promotion of ESG Initiatives Corporate Information

Relationship with Our Stakeholders

Notional Image of Activities to Eliminate Heat Strokes muscle, bone and water within the body as well as basal
Relationship with Our Associates Instill and
maintain
Zero heat
strokes
metabolic expenditure. Using these measurements along
with the body mass index (BMI) based on height and weight,
Our ultimate goal is to create safe and secure workplaces for everyone, where each and every associate can Introduce heat Establish which had conventionally served as our only indicator, we
risk assessment behavior
exercise their diverse potentials and play active roles. and habits plan to capture individual physical conditions in more detail
Behavior and provide appropriate health guidance.
Raise improvement *1: A tool to measure body composition, including muscle, fat, bone and body water
”
awareness ware s and
“Soft awarenesre)
al e cultu
Building a Safety-Oriented Culture That for operators to use. As a specific effort, we will design a dividu
ase in orkpla
c Major Health Promotion Events in Fiscal 2020
(Incre ster a w
Aims for Zero Industrial Accidents circuit configuration that completely shuts down a machine fo
Risk
Stop smoking awareness events
In accordance with our fundamental policy of “fostering safe, by cutting off its power when an operator accesses the “Hardware” reduction
(Improve hot working environments) •World No Tobacco Day: One-day no smoking (May 31)
healthy and pleasant workplaces,” Toyota Industries strives machine while disabling its safety device to extract a product •No Smoking Days: Half-day no smoking (for eight days)
to prevent industrial accidents and occupational disorders in production processes. This circuit configuration will be
as well as realize better work environments by making incorporated in new equipment we will install in the future. We Initiatives for Health Management and Participants of walking events (held jointly with health
5,627 persons
insurance association)
equipment more immune to accidents or disorders as early are also retrofitting a power shut-down feature to our existing Improvement
as in their design stage. equipment. Until we complete the modification, we will As a task for the medium term, we are promoting health
In fiscal 2020, we continued to promote primarily safety protect the safety of operators through periodic equipment improvement of associates, mainly focusing on prevention As part of mental health support activities, we have in
and health measures from human, object and administrative checkups. of lifestyle diseases and mental health support activities, to place a system to offer early consultation through a health-
standpoints based on risk assessment. In the wake of the accident, we will instill the safety first counter risks associated with aging and greater stress. In related hotline. Other activities include upgrading our self-
The analysis results of past accidents and interviews approach firmly in all associates in seeking to establish a fiscal 2020, we examined and adopted measures to foster care/line-care education to prevent new cases of mental
with plant personnel revealed that many operators lacked safety-oriented culture that aims for zero industrial accidents health promotion and maintenance activities by closely health problems and operation of a return-to-work support
sufficient awareness of hazard sources and conditions. As within the Toyota Industries Group. supporting associates. program for persons on long-term leave for prevention of
an effort to increase their individual consciousness for latent Frequency Rate of Lost Workday Injuries For prevention of lifestyle diseases, we conduct periodic relapses. We have successfully achieved positive results
hazards in the workplace, we added hazard-related matters age-based health education for all associates. We also through these activities.
(%)
to which they should pay attention into their routinely used feed back to associates the results of an annual health Under the stress check system introduced in fiscal 2017,
1.60
workplace reports of industrial accidents and potentially checkup and measurements conducted on the same day, we again conducted a check on all associates in fiscal 2020.
serious near-accidents as well as reports of risk prediction Manufacturing industry including physical fitness, body fat percentage and amount As in the previous fiscal year, we fed back the check results
1.20 to all participants and workplaces with suggestions for
activities. of fat around internal organs, along with advice to improve
With the aim of identifying all risks associated with lifestyle habits. This health education is designed to provide improvement. We also set up an individual interview with a
ancillary facilities and logistics during production preparations, 0.80 Manufacturers of transportation motivation for better health by letting associates think about doctor for those wishing to do so and provided improvement
machinery and equipment
we conducted interviews with each workplace to check their health over the course of the one-day program. In support as necessary to individual workplaces. As a means
issues they have encountered in conducting risk assessment. 0.40 fiscal 2020, we added nine items to the physical fitness to feed back the results to workplaces, we operate an IT-
Based on the results, we created and distributed manuals Toyota Industries measurement, which relate to flexibility, agility, bodily balance, based workplace check results viewing system that allows
Good
and guidelines matched to actual operations to make sure 0.00 muscle strength and endurance, to provide motivation for the users to perform a precise search of results and tips for
that risks are identified and reduced. (FY) 16 17 18 19 20 promoting physical fitness. Besides measurement results, improvement. In fiscal 2020, we started providing the results
we feed back physical fitness propensity scores and of associate awareness surveys and related improvement
Source: Survey on Industrial Accidents, Japan’s Ministry of Health, Labour and Welfare
countermeasures, how physically fitted for work, assessment
Improving Mental Health Support Systems
of physical fitness age and recommended exercises in order (Introduced a Stress Check System in Fiscal 2017)
Promoting Activities to Reduce Heat Strokes to raise relevant awareness among associates so that they
We introduced heat risk assessment in fiscal 2018. Since can work and take active roles until an older age. Objective Individuals Workplaces
then, we have been improving hot working environments for
Providing information on mental health
heat strokes according to the identified risks and adopting
preventive measures. As we expect the trend of unusually Improving support via the introduction of a stress check system
Genchi genbutsu education Genchi genbutsu logistics risk
assessment hot summers such as the one in fiscal 2019 to continue Preventive
measures
in the future, we are stepping up our efforts to improve Encouraging associates
Raising Understanding the

Mental health education

to be more aware of awareness of causes of stress in the
In spite of all these efforts, an associate got caught in a hot environments. We have conducted on-site surveys at their health and offering health-related workplace and
advice on health hotline improving working
machine in a fatal accident at the Higashichita Plant in Aichi workplaces where cases of heat strokes have occurred to improvement measures environments
Prefecture on December 6, 2019. quantitatively define sites requiring immediate action and Early
Age-based health education detection/ Workplace
We recognized it was a grave situation that seriously have been implementing measures accordingly under a Interviews as
<Consultation system>
check results
early • Industrial health viewing system
threatens our corporate foundation. For never repeating two-year plan. For workplaces whose operations preclude resolution
part of staff (in-house) (also providing the
health checks
such an accident in the future, we made efforts to identify the adoption of usual measures, we have devised tailored For preventing and ameliorating symptoms of metabolic • External institutions results of associate
awareness surveys)
deficiencies and took measures to prevent recurrence. means, optimized the layout of air conditioners and effectively syndrome, we provide health promotion guidance to Preventing
Specifically, we conducted a full inspection of similar reduced the associated risks. Through the implementation of associates with mild obesity or who are slightly overweight, in relapses Return-to-work support
machines and operations at all our plants and affiliated additional preventive measures, such as providing education addition to specific health guidance required by the Japanese
companies around the world and added physical measures on heat stroke prevention and encouraging a practice by government. By doing so, we encourage associates to
to the machines themselves to counter the identified supervisors to directly hand out hydration drinks to operators, improve lifestyle habits early on. In fiscal 2020, as a measure M
 ajor Activity Indicators
deficiencies. we successfully eliminated the number of heat stroke cases to support associates’ self-help efforts for health promotion
Activity indicator FY2018 FY2019 FY2020
In order to establish a process to install equipment in in fiscal 2020. and maintenance, we expanded the scope of our financial aid
Participants of age-based 2,422 2,470 2,357
a manner to ensure and maintain its safety, we formed We will continue to raise individual awareness for the system to include expenses for influenza vaccination, medical health education*2 persons persons persons
the Study Group for Intrinsic Equipment Safety led by prevention of heat strokes and foster a workplace culture that examinations for early detection of diseases, exercises and Rate of undergoing a stress
the production engineering departments to promote the quickly recognizes and responds to such disorders. health promotion tools. In fiscal 2021, we will introduce a 97% 99% 99%
check
introduction of machinery and equipment that are safe body composition analyzer*1 to measure amounts of fat, *2: Temporarily suspended from March 2020 for prevention of COVID-19

48 Toyota Industries Report 2020 49

 Company Introduction Strategies and Businesses Promotion of ESG Initiatives Corporate Information

Relationship with Our Stakeholders

examples on the same system, allowing individual workplaces and “mechatronics” Initiatives for Promoting Active Roles of Female Associates
to analyze their respective conditions from a multifaceted categories and bronze Phase 1 Phase 2 Phase 3
viewpoint and voluntarily engage in improvement activities. medals in the “mechanical Establishing and enhancing work- Cultivating a culture to encourage Undertaking initiatives to promote even greater roles
For these efforts, Toyota Industries was again recognized engineering design – life balance support systems more active roles
in the large enterprise category of the 2020 Certified Health CAD” and “structural to instill related practices
and Productivity Management Organization Recognition ironsmith” categories, 2002 — 2008 — 2015 —
Program (White 500) jointly promoted by Japan’s Ministry of thereby attaining medals
Project to promote more active roles for female

Promoting active roles

Economy, Trade and Industry and the Nippon Kenko Kaigi. for the 19th consecutive Cultivating a culture
associates in office work and engineering fields
We will continue to undertake activities to promote both competition. Shoma Kamiya, who won the gold medal
at the 57th National Skills Competition • Opening a diversity-related page
mental and physical health. *3: S
 kills competition for determining on the intranet Changing mindsets among managerial staff and across all associates
Japan’s top young engineers
• Female associate exchange
Career support for female associates
Efforts for Prevention of COVID-19 Number of Medals Won at the National Skills Competition meetings
Toyota Industries is promoting measures for prevention of • Holding lectures Promoting flexible working practices
FY2016 FY2017 FY2018 FY2019 FY2020
COVID-19 by formulating a response manual based on
Enhancing support systems

work-life balance
the Japanese government’s and other related guidelines. Gold medal 1 1 1 0 1

Supporting
• Extending the period of child • Introducing a shorter work-hour system for child care • Introducing a financial aid system
We encourage all associates to take seven measures such Silver medal 2 3 4 0 2
care leave • Introducing a work-at-home system for day care costs
as checking body temperature every morning, frequent Bronze medal 3 1 1 3 2 • Introducing a leave system to allow • Introducing a system of leave
hand washing and following proper cough etiquette. Each Total 6 5 6 3 5 parental care of children with illnesses for fertility treatment
workplace is also striving to cut back person-to-person • Establishing on-site day care center
• Introducing a “welcome-back” system • Installing delivery lockers
contact by promoting working from home and online meetings
as well as eliminating non-urgent business trips. We have also [Management Skills]
established a system to prevent the spread of infection should We conduct TICO Business Practices (TIBP) training targeting and a leave system and loan system for fertility treatment. we specifically focus on the initiatives to change the mindset
an associate get infected or become suspected of infection. managers and associates in office work and engineering Through these systems, we provide an environment for among managers and across all associates, provide career
Outside Japan, we are undertaking business activities while fields, with the aim of mutually sharing the thinking and values associates to work at Toyota Industries for longer years with support for female associates and promote flexible working
thoroughly implementing infection prevention measures as per that the Company gives importance to, as well as to enable peace of mind. practices.
the instruction of the government of each country. our associates to solve problems effectively and efficiently. As an effort to support associates to balance their work Since fiscal 2017, we have held a seminar for a
We will continue to take necessary preventive measures TIBP training programs are also provided at affiliated and nursing care, we distributed the Handbook for Balancing cumulative total of more than 1,300 managers who directly
matching to the conditions of each company and strive to companies around the world in our efforts to raise the level of Work with Nursing Care to associates aged 40 and above engage in the mentoring and development of associates. In
create workplaces where associates feel safe to work. management skills throughout the Toyota Industries Group. to help them gain knowledge on nursing care and to create fiscal 2020, we conducted enlightenment activities to foster
a workplace culture that allows associates to seek advice
Enhancing Team Strength [Spirit of Harmony] easily. We also regularly hold seminars on balancing work
A
 ction Plan Implementation
Toyota Industries believes We are creating a bright, energetic and caring work with nursing care for associates and their families and provide
that it is essential to Technical Skills Management Skills environment that fosters a dynamic workforce and allows newsletters on nursing care FY2016 – FY2021
QC, SQC, etc.
enhance team strength Expertise/skills/know-how
Ability to identify and every member to demonstrate his or her capabilities both as to those who are interested. (1) Launch, message from president
so that each associate resolve issues
Ability to merge multiple an individual and as a team. We are proactively encouraging As a result of these efforts, (2) Awareness seminar for managerial staff
Team Strength Changing
can work with vitality Leadership
levels of skill
communication not only during work hours but also through Toyota Industries received mindsets (3) Follow-up on individual development plans (Ongoing)
and the Company can To pursue improvements social gatherings organized by each workplace, sports days “Platinum Kurumin” among
managerial (4) Getting spouses involved in pre-maternity
thoroughly and continuously
achieve sustainable and summer festivals held by respective business divisions, certification from the Ministry staff and across leave seminars
all associates (5) Lectures by male role models
growth. Spirit of Harmony Group-wide Ekiden long-distance relay races and cheer of Health, Labour and
We believe that team Teamwork
Well-rounded
squads for various sports events held jointly among Toyota Welfare in August 2019 in (6) Promoting further engagement of male
associates in child care
strength is made up of humanity Industries Group companies. recognition of our excellent (1) Sending associates overseas for training at
(Ongoing)
“technical skills” that efforts concerning work-life an early stage in their careers
(2) Career training and interviews for female
form the basis of manufacturing, R&D and other production- Establishing Work Environments Where balance as well as a “Family- Career support
assistant managers
related operations, “management skills” to make maximum Diverse Human Resources Can Play Active Friendly Company” award for female (3) Role model exchange meetings
use of technical skills and a “spirit of harmony” that supports Roles from the Aichi prefectural associates
(4) Early return-to-work support (pre-maternity
leave seminars)
both. While further enhancing our team strength, we are We are implementing a variety of measures to create a government in February Seminar on balancing work
(5) Early return-to-work support (financial aid
with nursing care
striving to extend and hand it down beyond all business workplace environment that enables a diverse range of 2020. system for day care costs)
domains, generations and geographic regions. human resources to fully exercise their capabilities. These Promoting
(1) Expanding work-at-home options

include helping associates maintain a work-life balance, Promoting Active Roles of Female Associates flexible working (2) Establishing satellite offices
[Technical Skills] promoting active roles of female associates, supporting In addition to enhancing various systems to support work- practices
(3) Installing refrigerated delivery lockers
To develop skills to support manufacturing, the Technical the employment of persons with disabilities and creating life balance, we have proceeded with the creation of an Promoting more active roles of female associates in
Learning Center, one of our training functions, plays the an environment in which older associates can work more environment that allows female associates to continue engineering field

central role in associate education, offering basic skills actively. working, and in recent years, augmented our efforts to
training at the Technical Training School and facilitating promote their even greater roles.
efforts to enhance the skills of young technical staff through Efforts to Support Work-Life Balance In 2015, we set up a project to promote more active roles
in-house skills contests. We also work to cultivate highly Since around 2002, we have been setting up various systems for female associates in office work and engineering fields,
skilled specialists through participation in the national and to help associates balance work and family. These include comprising males and females from different departments.
international skills competitions. an on-site day care center; a return-to-work (“welcome- This project was key for the identification of issues and
At the 57th National Skills Competition*3 held in 2019, back”) system, which allows associates who have left work formulation of policy proposals in promoting active roles
in addition to receiving prizes in various other categories the to care for children and family members or to accompany of female associates, which formed the basis for the
Toyota Industries team won a gold medal in the “electrical their spouse for a job transfer to get reinstated under certain development of a Company-wide action plan in clarifying Seminar for managerial staff members Refrigerated delivery lockers
welding” category, silver medals in the “structural ironsmith” preconditions; a shorter work-hour system for child care; the initiatives for this project. In carrying out the action plan,

50 Toyota Industries Report 2020 51

 Company Introduction Strategies and Businesses Promotion of ESG Initiatives Corporate Information

Relationship with Our Stakeholders

an understanding of the environment in which associates, Number of Female Associates Holding Assistant Manager or Web
both male and female, having limited working hours due to
Higher Position
(Persons)
Relationship with Our Local Communities
nursing care or child care are working. We also worked to 150
raise awareness of human resources development that takes With a view toward creating an enriched and healthy society and ensuring its sustainable growth, we fulfill
into account their life events. our role as a good corporate citizen and actively undertake social contribution activities in every region
100 where we do business. Link to activities.
In order to create an environment to allow associates
who are balancing work and child/nursing care to work with
higher motivation and pursue career development, we have 50
enhanced our programs to support the early return to work Activities as a Good Corporate Citizen M
 ajor Social Contribution Activities of Toyota Industries and
from a break in their career. Efforts include a full-day work-at- Group Companies
0
Based on “Respect for Others” as described in our Basic
home system launched in October 2016; pre-maternity leave (FY) 16 17 18 19 20 Philosophy, we strive to fulfill our role as a good corporate Theme Activities
(As of March 31 of each fiscal year)
seminars started in December 2017 for associates and their citizen in every region where we do business and actively Events to interact with persons with disabilities
· “Walk Rally (orienteering),” harvest festival, festival
spouses to think about a way of working after returning to engage in social contribution activities to realize an enriched Support for welfare facilities
work; and a financial aid system for day care costs adopted and healthy society. In our activities that emphasize social · Support for charity bazaars at facilities by providing goods
Social · Volunteer work for facility cleanup/repair/pruning/weeding
in April 2018 for associates working while taking care of welfare, youth development, environmental protection and welfare · Support for sales of products from facilities for persons with disabilities by
infants younger than one year old. community contribution, we not only provide cooperation and providing opportunities to set up stalls
As a result of these initiatives, the number of female support through personnel, facilities, funds and know-how · Volunteer listening activities at elderly care facilities
Cooperating in a Soccer Class for Children with Autism or Down
associates holding the assistant manager or higher position but also strive to closely connect with participants. To foster Syndrome (China) (P54)
has doubled from the initial level. In October 2016, we employees’ awareness of their ties to society and raise their Support for Youth Invention Clubs
Pre-maternity leave seminar · Monozukuri workshops for elementary school children during summer
received “Eruboshi (“L Star”: L stands for Lady, Labour interest in contributing to society, we make enlightenment vacations
and Laudable)” certification, which is given to companies efforts such as sharing information on volunteer activities · Holding handmade kite-flying competitions
Youth
making excellent efforts in promoting female engagement in and providing venues for volunteer activities that encourage development
· Running craft corners at local events
Providing plant-hosted environmental education to elementary school children
the workplace, from Japan’s Ministry of Health, Labour and associates working under time constraints to fulfill their the participation of all employees. Employee associations* Providing monozukuri lessons at school
Welfare. In November 2019, we also received an “Excellent individual potential. are actively undertaking various activities to contribute to Holding Mini Concerts at Elementary Schools (P53)
Helping to Distribute School Supplies to Children (U.S.A.) (P54)
Company” award from the Aichi prefectural government local communities, mainly in the areas of supporting welfare
Initiatives for forest conservation
under its “Female-Friendly Company” certification program. Employment of Persons with Disabilities facilities and protecting the natural environment. · Tree thinning activities for conservation of prefecture-owned forests
Environmental
We have been making ongoing efforts to improve We respect the idea of people with and without disabilities * Voluntary organizations formed by employees at each job level
protection
· Producing and donating benches that made effective use of thinned wood
working together and sharing life and work values. Under this Tree-Planting Activities for Creating Rich Forests (P53)
workplaces to offer females a wider range of jobs and Changing and Reducing Packaging Materials (Netherlands) (P54)
higher quality of work, launching new initiatives to promote basic policy, we continue to employ persons with disabilities Structure for Promoting Social Contribution Participation in local traditional event (Mando Festival)
active roles of female associates in production operations every year. They are assigned to a variety of sections and Activities Road cleanup activities in areas around plants
Community Activities to raise awareness for traffic safety
and creating a better working environment to enable all work with other members to perform their designated tasks. The CSR Committee deliberates on policies of our social contribution Crime prevention patrols
In fiscal 2020, the ratio of associates with disabilities on a contribution activities while the Social Contribution Group Cooperating in Local Firefighting Operations and Becoming a “Partner
non-consolidated basis was 2.41%. within the General Administration Department at the Head of Firefighters” (Germany) (P54)
T OPI C Holding charity concert
Ratio of Associates with Disabilities (Non-Consolidated)
Office takes the initiative in carrying out activities. Support for international NGO through volunteer activities to collect spoiled
Other
postcards and others
(%)
Promoting More Active Roles of Female 2.5
Periodic blood donation drives
Associates in Engineering Field (Activities without country designation were conducted in Japan.)
2.4
We aspire that all associates engaging in production
2.3
operations fully work and take active roles until
an older age. In order for female associates to do 2.2 Activity Examples of Toyota Industries (Japan)
so, we need to overcome issues of gender-related 2.1

differences in physical strength and frame as well as 2.0 Holding Mini Concerts at Elementary Schools Youth development

the challenges of working during pregnancy, after 0

(FY) 16 17 18 19 20 With an aspiration to provide children, who are the leaders of the coming age, with an opportunity
giving birth and while raising children. As a means (As of June 1 of each fiscal year) to cultivate richness of mind through “real” music, we started inviting violinists, pianists and other
of doing so, we formed a Female Working Group
professional musicians and organizing mini concerts at elementary schools in fiscal 2011. In fiscal
and Job Level Working Group in fiscal 2020. These
2020, we held such a concert at seven elementary schools in Aichi Prefecture. At Yoshihama
groups have been working to review current issues, Creating a Work Environment for Older Associates Elementary School in Takahama City, in particular, we invited a choral group from Latvia, known
identify countermeasures and formulate an action In order to enable older associates to work and take active as the singing nation, who sung the school song as a surprise gift for the children. More than 500
plan for the next and following fiscal years. roles in production operations, we have been focusing on children were completely immersed in the choir’s beautiful, transparent voices. Mini concert at an elementary school
creating a better, less physically stressful work environment
for them by formulating rules common to all workplaces on
Tree-Planting Activities for Creating Rich Forests Environmental protection  umber of Participants of Social
N
the handling of heavy objects, working posture and other Contribution Activities of
practices, as well as by improving processes in production Employee Associations
lines. The team leader association of Toyota Industries has been (Persons)

In addition, we hold undertaking tree-planting activities since fiscal 2012 with the aim 1,500

“Seminars for an Active of restoring biodiversity and creating rich forests. In fiscal 2020, 1,000

Life” for associates about 130 members and their families planted cedar saplings in
500
reaching the age of 50 Hamamatsu, Shizuoka Prefecture. It will take some 50 years for
and 55 to give them an these saplings to mature, and the participants planted each sapling 0
(FY) 16 17 18 19 20
opportunity to envision life with care, hoping for healthy growth. Tree-planting activity
for creating a rich forest Each employee association voluntarily and
Working group participants
and work for the next Improvement activity
proactively engages in social contribution
activities, with the number of participants
10 years. on an engine production line remaining at a high level every year.

52 Toyota Industries Report 2020 53

 Determining CSR Materiality
Activity Examples of Consolidated Subsidiaries (Outside Japan)
Under the Toyoda Precepts CSR Materiality SDGs to Contribute
China Cooperating in a Soccer Class for Children with Autism or Down Syndrome Social welfare (corporate creed), Toyota Industries
Mitigation of Global Warming
has been pursuing solutions to social Contribution to Circular Economy
Toyota Industries Management (China) Co., Ltd. (TIMC)
[Import-export trade, logistics operations within China and operation of distribution centers] issues and undertaking a broad range
Resolving Social
Toyota Material Handling (Shanghai) Co., Ltd. (TMHS) of businesses since its founding. In Creation of Innovative Values
Issues through
[Sales of materials handling equipment] keeping with recent changes in the Our Business
Toyota Textile Machinery (Shanghai) Co., Ltd. (TTMS) P
 roducts and Services Which Contribute
business environment, we have once to Safety, Security and Comfort
[Installation, servicing and sales of supply parts of textile machinery]
again clarified which social issues M
 utual Prosperity through Partnerships
TIMC, TMHS and TTMS volunteered in a soccer class held to support the with Local Communities
we should tackle as our CSR material
rehabilitation of children with autism or Down syndrome. During the class, about 20 Foundation Safe and Healthy Work Environments
issues, and will work to contribute to
children enjoyed physical exercise through soccer and experienced the joy of scoring Supporting Leveraging Diversity and Inclusion
a goal through teamwork. At the end of the event, the three companies donated the resolution of these issues. Our Business Sustainable Procurement
Participants of a soccer class
stationary goods with the Toyota Material Handling Group logo and bath towels made for children with autism or Down syndrome Operations Compliance and Risk Management
by using our air-jet looms.
Process to Determine CSR Materiality
U.S.A. Helping to Distribute School Supplies to Children Youth development

Uster Technologies, Inc. (USTER USA)

[Production, sales and after-sales services of quality measurement instruments for fiber, yarn and fabric]
1 Identification of Issues Relevant to Toyota Industries
Identifying, among various social issues, the ones relevant to our business activities based on the United
Nations’ 17 Sustainable Development Goals (SDGs) and 169 targets as well as guidelines
In August 2019, USTER USA participated in the annual “Shoes for School” event
[Items we refer to]
organized by the local NPO Knoxville Area Urban League. The event is conducted with
the aim of supporting children to head back to school and start their academic year 1) 17 SDGs and 169 targets
well prepared with new shoes, socks, school supplies and free haircuts. At the event,
associates packed and distributed 6,000 pairs of socks donated from an apparel
manufacturer. USTER USA volunteers were grateful to be part of the local community
2) Important ESG items
that came together to bring a smile on children’s faces.
Children receiving school supplies
at the “Shoes for School” event

Netherlands Changing and Reducing Packaging Materials Environmental protection 2 Assessment of Importance
Assessing the importance of the identified issues from both internal and external viewpoints to select
those having higher degrees of importance
Vanderlande Industries Holding B.V. (Vanderlande)
[Provision of logistics solutions] [Assessment method]
1) Conducting questionnaires and discussions with relevant 2) Plotting onto a 2 x 2 materiality matrix to select
For protection of the environment, Vanderlande changed and reduced packaging
internal departments issues having higher degrees of importance
materials used to transport spare parts necessary for maintenance of logistics
systems. Firstly, Vanderlande changed packing tape from vinyl to recyclable paper,

viewed from outside

which is expected to reduce its annual plastic consumption equivalent of 30,000

Importance when
meters of tape. Another improvement was a reusable separator to place a maximum
of eight small parts, which had been packaged separately, in one box. Vanderlande
will continue to make effective use of resources and undertake its corporate activities
in an environmentally friendly manner. Package using a reusable separator

Importance for Toyota Industries

Germany Cooperating in Local Firefighting Operations and Becoming a “Partner of Firefighters” Community contribution

TD Deutsche Klimakompressor GmbH (TDDK)

[Production of car air-conditioning compressors] 3 Validation of Adequacy
Conducting reviews by both our top management and outside experts to receive feedback and confirm
In rural areas near Bersndorf in the Free State of Saxony, where TDDK is located, local the adequacy of the selected issues
fire brigades are mostly on a volunteer basis and in case of need volunteer firefighters
get an alert. TDDK supports their activities through donations as well as encouraging
and allowing associates to respond to alert calls during their work time. As a show of
gratitude, TDDK was honored as a “Partner of Firefighters” in October 2019 by the
county’s head of firefighters. TDDK will continue its ongoing efforts to cooperate in
local firefighting operations.
4 Approval by Top Management
Gaining approval of the CSR Committee chaired by the president and comprising our top management
Local fire brigade supported by TDDK based on the validation results

54 Toyota Industries Report 2020 55

 Company Introduction Strategies and Businesses Promotion of ESG Initiatives Corporate Information

Special Feature on the Environment

Special Feature on the Environment

Evaluation of the Efforts of TMHMS

TMHMS’ Path toward Zero
These advanced efforts of TMHMS throughout
CO2 Emissions its business activities were highly recognized. In
December 2019, the company received a Biogas
Award (second place), which is given to local
governments, companies and individuals in Sweden,
and was selected as the Sustainable Company of the
Year by the local community.
Toyota Material Handling Manufacturing Sweden AB
(TMHMS), a subsidiary manufacturing materials handling
Johanna Arnstedt Richard Bjersér
equipment in Sweden, became the first company in the Future Activities to Reduce CO2 Emissions Environment Manager of Project Manager of
Project Zero Project Zero
Toyota Industries Group to achieve a zero CO2 emissions plant. throughout the Product Lifecycle
In addition to achieving zero plant CO2 emissions, TMHMS
Three key factors led to the success of the
has been working to reduce CO2 emissions throughout the
project. The first is the Toyota Industries Group’s
product lifecycle from production to sales, use, disposal
clear Environmental Vision, which provided
and recycling. In January 2020, TMHMS made a first step
strong motivation for us to work for a zero
in its efforts to reduce logistics-derived CO2 emissions
Toyota Material Handling Europe AB (TMHE), a subsidiary serving as the regional CO2 emissions plant. The second is strong
with the introduction of biogas trucks in collaboration with
headquarters of the materials handling equipment business in Europe, has formulated a management on site, with project members from
transportation companies. These trucks will be used in some
various departments gathering their capabilities
two-pronged policy aimed at zero energy muda (waste) and zero carbon emissions from of the transportation operations between TMHMS plants
to carry out a reliable simulation for realizing
our operations by 2030 in accordance with Toyota Industries’ Environmental Action Plan. and between TMHMS and business partners. In production
a zero CO2 emissions plant. The last is that a
Based on this policy, the TMHE Group has been striving to reduce CO2 emissions at all of operations as well, TMHMS is making continuous efforts
biogas plant promoted under Sweden’s major
to reduce energy consumption by installing solar panels,
its bases in Europe in collaboration with customers and business partners. energy policies was located nearby.
visualizing energy use and undertaking kaizen (improvement)
In 2019, TMHMS, one of TMHE Group companies, became the first company in the activities. Through these endeavors, TMHMS intends to make
Toyota Industries Group to achieve a zero CO2 emissions plant and realize the policy. a higher level of contribution to the realization of a low-carbon
Ernesto Domínguez
We will share their efforts and accomplishments broadly both in and outside the Toyota TMHE President and CEO
emission society.
Industries Group and seek to contribute to the creation of a sustainable society.
■ Path toward Achieving a Zero CO2 Emissions Plant

❷ Only using electricity from renewable energy

1987: Switch from heavy oil to biomass- 2009: Switch from LPG to biomass-derived 2017: Replace LPG burners 2019: Switch from LPG to biogas;
Toward a Zero CO2 Emissions Plant derived steam (for space heating) steam (for heating wash water in the with electric burners Install solar panels
sources pretreatment process of painting
application)
Along with daily energy-saving activities, TMHMS made TMHMS introduced hydropower in 2015 and became the 2018: Reduce the temperature
efforts in three major areas. first company in the Toyota Industries Group to solely use for pretreatments and 2019:
green electricity, thereby eliminating CO2 emissions from
2015: Power contract for of ovens in the painting Achieve a zero
hydropower generation process
① ② ③ electricity consumption. CO2 emissions
Switching to district Only using electricity Switching from LPG plant
biomass-derived from renewable to biogas ❸ Switching from LPG to biogas
steam for heating* energy sources Switching to biomass steam and green electricity only left
one issue: about 3,000 tons of CO2 emitted every year
from the use of LPG mainly in painting dry-off ovens. To
eliminate the emissions, the manufacturing, environment, Continuous energy-
Daily energy-saving activities procurement and other departments of TMHMS joined saving efforts 1987 2009 2015 2017 2018 2019 2020
hands and launched Project Zero in 2017. After much
consideration, they decided to introduce biogas, a gas from
Zero CO2 emissions plant biomass, which does not use fossil fuels, and began to
install necessary equipment and modify existing facilities.
TMHMS completed its switch to biogas in August 2019 and
❶ Switching to district biomass-derived steam achieved a zero CO2 emissions plant for the first time in the
for heating Toyota Industries Group.
As its heating-purpose energy, TMHMS uses biomass-
derived steam supplied through district heating. TMHMS *B
 iomass is a general term used to refer
replaced heavy oil used for space heating and liquefied to organic materials coming from plants
and animals. When viewed from the
petroleum gas (LPG) for heating wash water in the painting lifecycle of an organic material, biomass
pretreatment process with biomass steam in 1987 and is regarded as carbon neutral, as CO2
emitted when generating steam or
2009, respectively. burning gas is offset by CO2 absorbed
during photosynthesis.

56 Toyota Industries Report 2020 Displays celebrating World Environment Day Production at carbon-free plant 57
 Company Introduction Strategies and Businesses Promotion of ESG Initiatives Corporate Information

Web Environmental Initiatives

Environmental Initiatives Link to initiative details.

Sixth Environmental Action Plan ————— P58–59

Vision for Environmental Activities / Structure to
Establishing a Low-Carbon Emission Society — P61–62 n Product Related
Implement Environmental Management ————— P60–61

Reducing Environmental Risk and Sixth Environmental Action Plan Targets

Establishing a Recycling-Based Society —— P62–63 Environmental Management ——————— P65–67
Establishing a Society in Harmony with Nature —— P63–65
Action Policies Specific Actions FY2020 Achievements
Sixth Environmental Action Plan •Develop technologies that contribute to an even greater level
of energy efficiency
•Developed new vane-type compressor
Establishing Reduce CO2 emissions through •Developed next-generation electric compressor
•Develop products and technologies that respond to electrification
a Low-Carbon product and technology •Developed new vehicle
The results of our activities in fiscal 2020 showed steady progress across the board toward achieving respective development
•Develop technologies to enable weight reduction
•Reduced air consumption of air-jet looms
Emission Society •Reduce energy loss
targets for fiscal 2021. •Develop technologies for the realization of a hydrogen-based society
•Developed fuel cell lift truck

•Reduce use of resources through longer product life

Establishing Implement initiatives to promote •Reduce use of resources through standardization, modularization •Developed new DC-DC converter
Progress of Sixth Environmental Action Plan Action Plan for the period from fiscal 2017 to fiscal 2021 3R (reduce, reuse and recycle) and reduction of components •Developed next-generation engine
a Recycling-Based
With an eye to realizing a prosperous life in harmony with and are promoting activities according to the plan. Through design for effective resource •Reduce use of resources through development of technologies to •Developed new AC inverter
Society utilization enable weight reduction and downsizing •Developed fuel cell lift truck
the natural environment through the establishment of a activities undertaken during fiscal 2020, we made steady
•Promote reuse of components and resources
sustainable society, we formulated the Sixth Environmental progress toward achieving respective targets for fiscal 2021.
Reducing Reduce emissions to improve
air quality in urban areas in all •Develop engines that meet future regulations •Developed next-generation engine
n Production Related Environmental Risk
countries and regions
and Establishing a
•Investigate chemical substances contained in products and •Supported business partners in Japan for establishing
Society in Harmony
Establishing a Low-Carbon Emission Society Manage chemical substances
manage switching over of SVHC*3 and other substances of a chemical substance management system
with Nature contained in products •Conducted survey on chemical substances
concern to other substances
contained in products
Action Policies/Specific Actions FY2020 Achievements FY2021 Targets

Base Year n Others

Reduce CO2 emissions from production activities Subject Scope Control Items Achievements Targets
(FY)
•Develop and introduce production engineering Non- Total Sixth Environmental Action Plan Targets
technologies with lower CO2 emissions consolidated emissions
2006 –14% –10%
•Reduce CO2 emissions by fully implementing Action Policies Specific Actions FY2020 Achievements
improvement activities on a daily basis CO2
emissions
Global Emission –28% –26% •Share the biodiversity guidelines across all Toyota Group
•Develop innovative CO2 reduction technologies that utilize volume per Reducing
2006 companies and contribute to the expansion of a habitat for •Participated in All Toyota Green Wave Project
clean energy Non- unit of Environmental Risk living organisms
Augment activities related to •Devised biodiversity conservation action plan
•Manage greenhouse gases other than CO2 consolidated production*
1 –33% –30% and Establishing a •Formulate and promote plans to link activities and connect within Toyota Industries premises
protection of biodiversity
Society in Harmony green zones by undertaking activities for conservation of
with Nature biodiversity throughout the Toyota Industries Group, including
Reduce CO2 emissions from production-related Emission at consolidated subsidiaries in and outside Japan
logistics CO2 volume per
emissions Non- 2007 –36% –28%
•Improve transportation efficiency through such measures unit of •Build a global environmental management system and promote
as modal shift and better cargo loading efficiency from logistics consolidated production related activities to:
Comply with environment-related laws in each country and region
Formulate a medium-term plan based on visualization of •Promoted mitigation activities
Augment and promote environmental risks and conduct activities to prevent risks from •Inspected environmental risks at production
occurring
consolidated environmental bases in Japan
Establishing a Recycling-Based Society Enhance risk communication with relevant organizations and
management local residents •Introduced Reporting System for Improvement
Achieve the highest-level environmental performance in each in Sustainability Engagement (RISE)
country and region
Action Policies/Specific Actions FY2020 Achievements FY2021 Targets •Enforce strategic environmental management that integrates
environmental activities and business activities
Promote measures against resource depletion Base Year
Subject Scope Control Items Achievements Targets
(FY)
by recycling waste •Extend the scope of Toyota Industries’ enlightenment activities to •Held various events during Environment
•Reduce the volume of discarded materials by taking action Promoting Enhance education and
consolidated subsidiaries in and outside Japan Strengthening Period (from June to August)
Japan enlightenment activities
at the source, such as improving yields and other measures –44% –27% Environmental •Give back to society the outcomes of enlightenment activities •Provided education on environmental management
•Promote internal reuse consolidated Management
Emission
Waste volume per Promote environmental activities •Ensure compliance with laws and regulations and improve •Held briefing sessions for business partners in Japan
Promote effective resource utilization in generation 2006 in collaboration with business environmental performance based on the Environmentally
unit of •Held an environment-related liaison meeting of
production activities volume Preferable Purchasing Guidelines
production partners bases in China
•Reduce use of packaging materials Non-
–44% –29%
•Monitor water input and output in each country/region consolidated
and develop and promote appropriate measures •CDP*4 climate change: ranked A
(on a performance band of A to F)
Improve eco-conscious brand •Pursue higher brand image through proactive information •CDP water security: ranked A-
image disclosure (on a performance band of A to F)
Reducing Environmental Risk and Establishing a Society in Harmony with Nature •Received a Minister of Economy, Trade and
Industry award in the Energy Conservation Grand
Prize program (Nagakusa Plant)
Action Policies/Specific Actions FY2020 Achievements FY2021 Targets

Base Year
Subject Scope Control Items Achievements Targets
(FY)
*1: We manage emissions in each business by using either unit of production or unit of sales as a basic unit of emissions. The weighted average of
Further reduce emissions of substances of concern
reduction rates of all businesses is used as our management index.
•Minimize the use of substances of concern by promoting Non- Emission *2: Volatile Organic Compounds
efficient production activities VOC*2 consolidated volume per 2006
–36% –36% *3: Substances of Very High Concern Web
emissions (automobile unit of (24g/m2) (24g/m2) *4: An international NGO running a project in which institutional investors work together and request companies around the world to disclose their
body) production strategies against climate change and greenhouse gas emissions data
Link to the action plan.

Details of the Sixth Environmental Action Plan are available at our Website.

58 Toyota Industries Report 2020 59

 Company Introduction Strategies and Businesses Promotion of ESG Initiatives Corporate Information

Environmental Initiatives

Vision for Environmental Activities an external lecturer for upgrading the quality of our internal at one plant. We have been making improvements regarding
audits. The curriculum covered a method to audit on-site these matters and sharing details with other plants.
environmental management, which is one of the priority audit We continued to conduct internal audits under the
We have defined our aspirations in 2050 and launched the Sixth Environmental Action Plan in fiscal 2017. items for fiscal 2020, and participants accordingly learned mutual, interdivisional audit system. We strived to upgrade
required skills. our auditing capabilities by organizing audit teams with the
dual goals of fostering the development of auditors and
Environmental Audits increasing audit efficiencies. In the area of audits, our focus
Global Environmental Commitment to realizing a prosperous life in harmony with the natural Toyota Industries implements annual internal environmental was placed on environmental policy management and on-
As one tenet under our Basic Philosophy, Toyota Industries environment. audits as well as external audits carried out by an site environmental management, and we clarified how much
works to contribute to regional living conditions and social independent third-party institute. each business division contributes to overall environmental
prosperity and also strives to offer products and services that Aspirations in 2050 and the Sixth In fiscal 2020, the external review identified no non- management and checked if there are any environmental
are clean, safe and of high quality. Accordingly, in February Environmental Action Plan conformance issues. The review, however, pointed out some risks in each division.
2011, we established the Global Environmental Commitment, Following the 2015 adoption of the Paris Agreement, an matters that could potentially constitute non-conformance
a specific environmental action guideline, to be shared and international framework for action against climate change, the
implemented throughout the Toyota Industries Group. The establishment of a low-carbon emission society has become
entire Toyota Industries Group will dedicate concerted efforts a global common goal. For Toyota Industries as well, the
need to take further proactive measures is growing as global
environmental issues continue to become of greater concern,
Establishing a Low-Carbon Emission Society
Aiming at realizing a prosperous life in
with more people becoming increasingly conscious about the
harmony with the natural environment We position the curbing of global warming as our most crucial environmental task. We have been working to
environment.
Under the circumstances, in 2016 we defined our reduce CO2 emissions in our global business activities and at the same time accelerate our efforts to develop
aspirations in 2050. The Global Environmental Commitment, more environment-friendly products.
Environmental risk which represents our basic approach to environmental
reduction
Society in harmony activities, specifies four action themes, namely, 1) establishing
with nature a low-carbon emission society; 2) establishing a recycling- Efforts for Reducing CO2 Emissions
Recycling-based based society; 3) reducing environmental risk and establishing Our Approach The Higashiura Plant, a compressor production base in
Low-carbon society
emission society a society in harmony with nature; and 4) promoting For Toyota Industries, dealing with global warming is Aichi Prefecture, has been promoting measures to reduce
environmental management. As a milestone toward achieving not just a “risk.” It also presents “opportunities” in doing CO2 emissions from the drying and baking process, which
our aspirations in 2050, we have formulated the Sixth business to both differentiate ourselves by leveraging our consumes a large amount of energy.
Environmental Management
Environmental Action Plan, a five-year plan for the period technology-based product appeal and conduct eco- In the process, it is important to keep the thermal
from fiscal 2017 to fiscal 2021, and will resolutely undertake conscious production activities. processing equipment at an even temperature. This causes
Notional Diagram of Global Environmental Commitment activities in accordance with the plan. In our aspirations in 2050, we set a goal of the wasteful use of energy as it requires the same amount
establishing a zero CO2 emissions society on a global of energy even if there is a drop in production volume. In
basis and have been making efforts in various fields. In response, the plant started sharing a drying and baking
the area of product development, our focus includes process between two lines manufacturing different products
Structure to Implement Environmental Management electrification and increasing the fuel efficiency of
engines. In production activities, promoting thorough
and successfully increased energy efficiency.
The drying and baking process also requires a large
energy savings and utilizing renewable energy and amount of energy to restore the temperature of the
Positioning environmental response as one of its most crucial management issues, Toyota Industries is enhancing hydrogen are the two pillars of our activities. As specific equipment once it has stopped. In order to prevent the
its environmentally oriented corporate management on a global basis through the promotion of consolidated efforts, we will adopt solar and other renewable energy irregular shutdown of the equipment, the plant adopted
environmental management. sources and effectively utilize hydrogen while thoroughly multifaceted measures, such as preventing product line
eliminating wasteful use of energy in production sorting errors by installing a sensor after the baking process
processes and increasing the efficient use of energy. and eliminating bottlenecks by making the conveyor line
Promotion of Environmental Management Environmental Management Structure
straight.
System Organizations Committees These measures enabled the plant to reduce its annual
Toyota Industries has positioned environmental response as CO2 emissions by about 298 tons.
President Environmental Committee
Summary CO2 Emissions (Production Activities)
one of its most crucial management issues. To quickly reflect Internal audit
Specialized committees
top management’s decisions on business operations, Toyota Responsible internal auditor FY2020 Results After Improvement Line sorting
•Team leader
Industries has established and been operating a Company- •Supervising auditors Product Environment Subcommittee sensor
Total emissions (non-consolidated) Sharing

14
•Auditors
wide integrated environmental management system (EMS), Production Environment Subcommittee FY21 target:
with the president at the top.
Chief environmental administrator
10% reduction Line 1 Washing Painting Drying Baking
As in the previous fiscal year, in fiscal 2020 we conducted
Admin office Company-Wide CO2
Emission Reduction Conference
% reduction (vs FY06 level) (vs FY06 level)
Head Office Divisions
introductory educational courses to foster the knowledge Corporate Planning Company-Wide CO2 Zero
Materials Handling Equipment
Emission volume per unit of production (global)

28
Emissions Challenge Subcommittee
needed for environmental management and an introductory R&D
Purchasing
Vehicle
FY21 target:
Engine
educational course for environmental audits to cultivate Quality Assurance 26% reduction Line 2 Washing Painting Drying Baking
knowledge and techniques of internal audits. As department Human Resources
Compressor
Electronics
Division-Based
Promotion Committees % reduction (vs FY06 level) (vs FY06 level)
General Administration Suspended
heads and other personnel in managerial positions Textile Machinery

proactively attended these courses, we were able to promote Environmental Conservation Organization by manufacturing plants Under the Sixth Plan, we are working toward achieving
(environmental risk management overseen by plant managers)
the enhancement of environmental management and the fiscal 2021 targets of reducing total non-consolidated CO2
development of internal auditors. emissions by 10% and global emission volume per unit of
For internal auditors, we provided skill-up training by production by 26%, both from the fiscal 2006 level.

60 Toyota Industries Report 2020 61

 Company Introduction Strategies and Businesses Promotion of ESG Initiatives Corporate Information

Environmental Initiatives

T O PI C Additionally, Toyota Efforts for Recycling Water and Reducing

Material Handling Water Intake
Manufacturing Italy (TMHMI), Each production base of Toyota Industries has been making
Iwama Loom Works Receiving a Director-
a subsidiary manufacturing various efforts to promote the recycling of water and
General of the Chubu Bureau of Economy, Yuu Sato materials handling equipment reduction of water intake.
Trade and Industry Award as an Excellent
in Italy, installed water For example, Toyota Industry (Kunshan) Co., Ltd. (TIK),
Energy-Saving Business Operator Group leader
dispensers at its production a subsidiary manufacturing lift trucks and foundry parts in
In February 2019, Iwama Loom Works, Ltd., a subsidiary Safety and Environment Group
General Affairs Department sites in the summer of 2019 Employees holding their personal bottles China, has implemented a variety of measures and achieved
manufacturing compressor parts in Aichi Prefecture, was Iwama Loom Works, Ltd.
and gave away reusable zero wastewater from plant production processes. These
recognized for its proactive energy-saving efforts and (As of March 31, 2020)
water bottles to employees, thereby promoting the reduction measures include purifying and reusing wastewater from
outstanding outcome and received a Director-General of
Because gaining the understanding and cooperation of PET bottles. The initiative was expanded in November painting processes and installing evaporative concentration
the Chubu Bureau of Economy, Trade and Industry Award
of the Manufacturing Department was essential 2019 to include its offices. equipment and reverse osmosis (RO) membranes to purify
as a business operator conducting excellent energy
in promoting our activities, we worked to build a wastewater for reuse and to reduce wastewater discharge.
management. The company presented details of its efforts
relationship of trust with them and proceeded while TIK intends to maintain zero wastewater and help reduce
at the Symposium on the Rational Use of Energy hosted
checking each step together. We also devised a way Our Approach (Water Resources) the environmental impact on public waters while continuously
by the bureau in January 2020.
to visualize the outcome through such measures Water is the basis of all life on the Earth and is an working to reduce water intake.
Iwama Loom Works has been making steady and
ingenious energy-saving efforts, such as the promotion of as showing how much money we have saved by irreplaceable and valuable resource. Every year, however, Flow of Reusing Wastewater from Production Processes
energy just-in-time (JIT) activities that visualize and reduce conserving energy. we have been witnessing the increasingly severe impacts
Reusing (recycling)
the wasteful use of energy and creation of a non-powered of droughts, floods and other natural disasters resulting
Evaporative
karakuri mechanical pump for the recovery of liquid waste. from climate change as well as shortages in drinking Oil and water concentration Biotreatment by RO membrane
separation processing microorganisms
water and agricultural water caused by the growth in
the world’s population. Many of the processes of Toyota
Plant
Industries use water for washing products and in the
Discharge
painting process, and we regard the water supply crunch
Waste (oil sludge) Waste (concentrated liquid waste)
caused by climate change and population growth as a
Establishing a Recycling-Based Society significant risk to our business activities.
What is
In our aspirations in 2050, we set a goal of an RO Only water molecules
Water molecules
With a view to establishing a recycling-based society, we have been striving to reduce waste and the minimizing the environmental impact on water resources. membrane? go through the Contaminants
membrane. (bacteria, heavy metals, etc.)
consumption of water and other resources. We have identified the status of water risks at Toyota
Industries and consolidated subsidiaries and have
been undertaking activities matched to the respective
Waste Generation Volume (Production conditions with a focus on reducing water intake,
Our Approach (Waste) Summary Activities) promoting recycling and purifying wastewater.
Mass consumption, if continued on the back of the
expanding world population and economic growth, will FY2020 Results
eventually deplete natural resources. Toyota Industries Waste generation volume per unit of production
believes it is essential to promote 3R (reduce, reuse and (non-consolidated)
recycle) design for effective resource utilization and the
44 Reducing Environmental Risk and Establishing a Society in
FY21 target:

recycling of waste as resources. 29% reduction

% reduction (vs FY06 level)
Harmony with Nature
(vs FY06 level)
We set a goal of minimizing the use of resources
in our aspirations in 2050. Accordingly, we have been Waste generation volume per unit of production
making various efforts, including extending the life of (non-consolidated/consolidated subsidiaries in Japan) We have been making efforts to reduce the use of substances of concern while carefully monitoring the latest
components as well as reducing their size and weight in
44
FY21 target:
27% reduction trends in environmental laws and regulations on a global basis. At the same time, we have been promoting
the area of product development. In production activities, % reduction (vs FY06 level) (vs FY06 level) activities for the conservation of biodiversity toward realizing a society in harmony with nature.
implementing measures to reduce resource consumption
at the source, ensuring the maximum resource recycling
Under the Sixth Plan, we are working toward achieving the
within a plant and reducing waste by using leading-edge biodiversity and work with local communities for the
fiscal 2021 targets of reducing waste generation volume per
technologies are the three pillars of our activities. Our Approach (Conservation of Biodiversity) conservation of biodiversity.
unit of production compared with the fiscal 2006 level by
29% on a non-consolidated basis and by 27% for Toyota Deforestation is now proceeding in various parts of the
Industries and its consolidated subsidiaries in Japan. world, causing the fragmentation of the habitats of living
organisms. In order for humankind to live in harmony with Creating an Animal Path to Improve Natural
Efforts for Reducing the Use of Plastics nature, it is essential to protect nature in each region. Habitats of Living Organisms
The Toyota Industries Group seeks to reduce ocean plastic In our aspirations in 2050, we set a goal of In recent years, we have found that foxes are living in
pollution by making improvements in its business activities generating a positive influence on biodiversity and the wooded area surrounding the Higashiura Plant in
and encouraging behavior change among employees. have been conducting various business activities Aichi Prefecture. But because there is not a large enough
Vanderlande Industries Holding B.V., a subsidiary engaging while continuously paying attention to their impact habitat, many were fatally involved in traffic accidents on
in the logistic solutions business in the Netherlands, changed on the natural environment. We have also formulated the neighboring roads. To provide a safe passage between
the packing tape used in one of its warehouses from plastic the biodiversity policy and been promoting initiatives these wooded areas, Toyota Industries created an animal
to paper and successfully achieved a reduction in the use of accordingly. The policy clearly stipulates that we seek path within the plant premises and has been checking the
plastic tape equivalent to about 30,000 meters per year. to reduce the impact of our business activities on inhabiting status. Since observing a fox on the animal path

62 Toyota Industries Report 2020 63

 Company Introduction Strategies and Businesses Promotion of ESG Initiatives Corporate Information

Environmental Initiatives

for the first time six months after its creation, we have been focus on creating a natural environment that has a constant Summary VOC Emissions (Production Activities)
regularly seeing foxes using the path. We will continue to supply of fresh water, which is essential for living organisms, Our Approach (Substances of Concern)
monitor the status while implementing additional measures as and is inhabited by insects the birds feed on. Currently, air pollution by chemical substances has FY2020 Results
necessary to create a better environment. become a global issue having equal importance as Emissions per unit of production
Cooperating with an NPO to Provide global warming. As such, countries around the world (non-consolidated/automobile body)
Environmental Education to Children are adopting more stringent environmental regulations
36
FY21 target:

Toyota Material Handling Mercosur Indústria e Comércio de each year. How Toyota Industries responds to these 36% reduction
% reduction (vs FY06 level) (vs FY06 level)
Equipamentos Ltda (TMHM), a subsidiary manufacturing regulations will have a significant impact on the business
materials handling equipment in Brazil, has been carrying out activities we undertake in each country.
environmental enlightenment activities both in and outside the Based on this perception, we have been taking a Under the Sixth Plan, we set a target of reducing emission
company. forward-looking approach, anticipating fuel efficiency volume per unit of production for VOC from the automobile
In August 2019, TMHM provided environmental education and emissions regulations to be enforced by each body painting process by 36% from the fiscal 2006 level
to children in cooperation with the NPO Casa do Caminho. country and region, and promoting product development and have been striving to reduce VOC emissions. In fiscal
At the event, children received a lecture on air pollution and accordingly. In production activities, we have been 2020, we continued our efforts to increase the recovery rate
global warming and talked about how these two issues working to reduce emissions of volatile organic and enhance the maintenance and management of thinner.
impact their daily lives and what they can do to prevent them. compounds (VOC), which are causal substances of Consequently, we were able to cut down emission volume
Foxes using the animal path
To increase the children’s environmental awareness, photochemical oxidants that generate smog. per unit of production in fiscal 2020 by 36%.
TMHM, together with the children, created flower pots from
Chita Peninsula Ecological Network Forum used PET bottles and planted seedlings using these pots.
As part of efforts to conserve biodiversity, Toyota Industries
collaborates in an initiative of the Aichi prefectural government
to promote the development of ecological networks within
the prefecture.
In fiscal 2012, we joined the Chita Peninsula Ecological Environmental Management
Network Council and have since been carrying out activities
linked to the local natural environment while working with Toyota Industries proactively engages in initiatives to reduce environmental risk and discloses various
various concerned parties, including local governments, environmental information.
companies, NPOs, expert bodies and students.
At the Chita Peninsula
Ecological Network Forum Status of Compliance with Environmental We again conducted genchi genbutsu (go and see for
held in December 2019 Laws yourself) environmental risk inspections at such subsidiaries
under the theme of “the With an eye to minimizing environmental risks to local in fiscal 2020 to check facilities on their premises, the
day when foxes come communities, the Toyota Industries Group is striving to boundaries of their premises, discharge outlets and waste
Environmental education to children provided in cooperation with an NPO
back,” we exchanged prevent violations of environment-related laws. Such initiatives storage sites and confirmed that they were managed well.
views with participants on include taking measures against the recurrence of potentially We will continue to monitor the status of their responses
the status of Japanese Chita Peninsula Ecological Network Forum serious near-accidents that may result in legal violations and to the identified issues and conduct risk inspections at our
red foxes once declared TMHMF’s Initiative for the Conservation of performing environmental risk inspections at its plants. subsidiaries on an ongoing basis.
regionally extinct and conducted a presentation on our animal Biodiversity In fiscal 2020, there was one case of violation of air-
path initiative. We will continue to collaborate with local Toyota Material Handling Manufacturing France SAS related laws at one of our consolidated subsidiaries outside Responding to More Stringent
communities and proactively undertake activities to expand (TMHMF), a subsidiary manufacturing materials handling Japan. We have thoroughly implemented necessary Environmental Regulations in China
ecological networks. equipment in France, has been conducting activities to countermeasures and shared relevant information within Toyota Industries’ production bases in China manufacture
contribute to the conservation of biodiversity. Toyota Industries and with other Group companies to prevent various products, including materials handling equipment, car
Joint Initiative of Toyota Group Companies In September 2019, TMHMF set up an eco-farm and a similar incidence throughout the Group. air-conditioning compressors and foundry parts.
to Conserve Endangered Bird Species in the started raising Ouessant, an endangered sheep breed. In recent years, China has been making frequent revisions
Kinuura Bay Area The farm is protecting the rare breed while saving energy Soil and Groundwater Pollution to its environmental laws on air and water quality, tightening
Under the Sixth Plan, we formulated a plan to connect for operating mowing machines by letting the sheep graze Countermeasures regulations with each revision. We regard a violation of these
green zones by undertaking activities for the conservation on the grass. The farm also provides a petting zone for Toyota Industries carries out surveys and purification of environmental laws as a business continuity risk to the
of biodiversity throughout the Toyota Industries Group. Each employees, which has served to raise their awareness of soil and groundwater contaminated from the past use of Toyota Industries Group, as it may entail the suspension of
plant of Toyota Industries has been collaborating with various biodiversity and increase communication among them. trichloroethylene and other substances of concern. We production or other penalties, which in turn will directly lead
concerned parties to carry out initiatives matched to the local As another effort to conserve biodiversity, TMHMF held a regularly report the survey results to local government to a disruption of our supply chain and damage our brand
characteristics. photo contest on the theme of biodiversity in June 2019. authorities and provide information at local community image.
Under the guidance of experts, the Higashichita Plant, an meetings. As measures to prevent pollution from substances In order to ensure compliance with environmental laws at
engine production base in covered by the Soil Contamination Countermeasures Law our bases in China, in September 2019 we started reinforcing
Aichi Prefecture, has been as well as from grease and oils, we have drilled observation environmental management and support in the country, with
working with other Toyota wells at all plants to conduct regular checks. Toyota Industries Management (China) Co., Ltd. (TIMC) taking
Group companies to the lead.
restore Kinuura Bay to its Conducting Environmental Risk Inspections Specific efforts include providing updates on revisions
original state by protecting at Consolidated Subsidiaries in Japan to environmental laws, checking the status of compliance at
endangered bird species In addition to our own production bases, we are promoting each base and providing support for improvement. We will
in its coastal area. Their Plant-wide bird survey Ouessant, an endangered sheep breed Photo contest activities to reduce environmental risks at our manufacturing also promote mutual improvement by sharing information and
on the theme of biodiversity
efforts in the future will at the Higashichita Plant subsidiaries in Japan. encouraging communication among the bases.

64 Toyota Industries Report 2020 65

 Company Introduction Strategies and Businesses Promotion of ESG Initiatives Corporate Information

Environmental Initiatives

In December 2019, we held an environmental liaison autonomous activities of each company.

meeting of the Toyota Industries Group’s bases in China We will augment our environmental management by Selected as an A-List Raymond Winning a Green Supply Chain
at Toyota Industry (Kunshan) Co., Ltd. (TIK). During the extending the scope of RISE and further solidifying our supply Company in CDP Survey Award
meeting, environmental officers from these bases and Toyota chain network. on Climate Change for Two In December 2019, The Raymond Corporation,
Industries shared the Group’s environmental action policy in Environmental Data Aggregation System Consecutive Years a subsidiary manufacturing materials handling
China, gave briefings on the latest updates on the country’s Toyota Industries was selected for equipment in North America, received a Green Supply
legal trends and exchanged views. As part of this meeting, an the A List for two consecutive years Chain Award from Supply & Demand Chain Executive
on-site inspection was also conducted at TIK. in a survey conducted by CDP on climate change magazine. The award recognizes companies making
We will continue to as a company making especially outstanding efforts sustainability a core part of their corporate strategy
carry out appropriate to reduce greenhouse gas emissions and mitigate and carrying out environmental activities. Raymond
environmental management Reporting Collecting Aggregating Providing
climate change. The Toyota Industries Group defined received the award for its efforts to save energy by
data information data information
and support so as to its aspirations in 2050 in March 2016, and based on visualizing energy consumption and automatically
ensure compliance with these aspirations, formulated the Sixth Environmental shutting down air conditioners when not needed, as
environmental laws and Action Plan, a five-year plan for the period from fiscal well as efforts to reduce water consumption, reuse
reduce any business 2017 to fiscal 2021. Our proactive activities under water and recycle packaging
continuity risk at our bases On-site inspection conducted
the plan, particularly the tandem efforts to develop materials.
as part of the liaison meeting in China
in China. Environment-related products with high environmental performance and Raymond will proceed
departments of Toyota Industries reduce CO2 emissions from production activities, have with process improvements
Partnering with WIPO GREEN resulted in the selection. throughout its business
We became a partner of WIPO GREEN, a marketplace We will continue to tackle climate change as activities toward the
to spur innovation and diffusion of green technology. Verification by a Third Party one of our important tasks and contribute to the realization of a sustainable
The platform is run by the World Intellectual Property Toyota Industries obtains third party verification in order to realization of a sustainable society through our global society.
Organization (WIPO), a specialized agency of the United increase the credibility of its data on energy-derived CO2 environmental conservation activities.
Nations, to support global efforts to achieve the Sustainable emissions, waste generation volume, water consumption and
Development Goals (SDGs). wastewater discharge.
As a WIPO GREEN partner, we have registered in the We will continue to utilize this third party verification
database patents for our plastic glazing (PG) that contributes in making continuous improvements in our environmental External Environmental Awards TO P IC
to higher fuel efficiency through the reduction of vehicle activities and disclose data to our stakeholders in a more
weight, carbon fiber reinforced plastic (CFRP) and solar transparent manner. Toyota Industries’ environmental activities to date have been EcoVadis*
heat collection tube used in the highly acclaimed by external organizations. TMHE Group Receiving the Highest
generation of renewable energy. “Platinum” Rating
Details of verification and the
We will continue to move Toyota Material Handling Europe AB (TMHE), a
ahead with our efforts related
verification statement of the Web Won a Minister of Economy,
consolidated subsidiary overseeing the materials
third party organization are Trade and Industry Award in
to environmental products and handling equipment business in Europe, received
available at our Website. Link to details and
verification statement. the 2019 Energy Conservation
technologies and contribute to the the highest “Platinum” rating from EcoVadis in
Grand Prize
realization of a sustainable society. its corporate sustainability survey. The rating
A project of the Nagakusa Plant in Aichi
Prefecture to save energy in the drying corresponds to the top 1% group of the companies
Leveraging IT to Augment Environmental External Evaluations of Toyota Industries’ process of vehicle painting won a that have been evaluated.
Management Environmental Activities Minister of Economy, Trade and The TMHE Group has formulated an energy
With the dual aims of improving environmental performance policy to achieve zero energy muda and has been
associated with business activities and fulfilling our
External Environmental Evaluations Industry (METI) Award in the Industrial
Field, which is the highest level award engaging in activities based on high sustainability
information disclosure responsibility, the Toyota Industries Toyota Industries fosters environmental communication with targets. The Group has been making outstanding
in the 2019 Energy Conservation Grand Prize
Group has been collecting environmental data of Toyota our stakeholders through proactive disclosure of environmental progress, with one of its manufacturing companies
program (Best Practice Category) run by the Energy
Industries and its consolidated subsidiaries in and outside information. achieving a zero CO2 emissions plant in 2019. (See
Conservation Center, Japan. This award program
Japan. In fiscal 2020, we introduced an environmental data Since fiscal 2015, we have been participating in the Special Feature on the Environment on pages 56–57
recognizes outstanding energy-saving products and
aggregation system to raise the efficiency of data collection Ministry of the Environment’s project for the establishment for details.) The rating was given in recognition of such
energy-saving efforts of business operators or
and the accuracy of the collected data. We call the system of a framework for disclosure of environmental information excellent performance and transparency in information
business sites. It was the first METI Award Toyota
by the nickname RISE (Reporting system for Improvement and examining the ideal way to disclose our environmental disclosure. TMHE will
Industries has received under the program.
in Sustainability Engagement). The name embraces our information. We will continue to upgrade our method of continue to undertake
aspiration to contribute to a sustainable society and reinforce disclosure and contents to be disclosed. business activities
our environmental response. List of External Environmental Evaluations and provide products
The use of RISE to centrally manage the environmental and services in a
data of Group companies Evaluation organizations Fiscal 2020 sustainability-conscious
has enabled us to accurately CDP climate change A manner.
identify the environmental * An international organization that
impact and trends in the
CDP water security A- evaluates the sustainability of
supply chain companies
entire Toyota Industries
Group. The promotion
of information sharing
Members of the Production Engineering Department
throughout the Group has Briefing session for consolidated
in the Vehicle Division
subsidiaries
also led to more active,

66 Toyota Industries Report 2020 67

 Company Introduction Strategies and Businesses Promotion of ESG Initiatives Corporate Information

Corporate Information Directors, Audit & Supervisory Board Members,

Senior Executive Officers and Executive Officers

Directors, Audit & Supervisory Board Members, Senior Executive Officers and Executive Officers — P68–69 Major Bases — P70–71 Investor Information — P72

Directors, Audit & Supervisory Board Members,

Senior Executive Officers and Executive Officers (As of June 30, 2020)

Directors Audit & Supervisory Board Members

Apr. 1970 Joined Toyota Motor Sales Co., Ltd. Apr. 1981 Joined Toyota Industries Corporation Full-Time Audit & Apr. 1977 Joined Toyota Motor Sales Co., Ltd. Full-Time Audit & Apr. 1983 Joined Toyota Industries Corporation
Chairman President Supervisory Board Member Jun. 2016 General Manager of Accounting & Finance Dept.
Feb. 1991 Vice President of Toyota Motor Sales, U.S.A., Inc. Jun. 2005 Director Supervisory Board Member Jun. 2005 Director of Toyota Industries Corporation
Tetsuro Toyoda Jun. 1991 Director of Toyota Industries Corporation Akira Onishi Jun. 2006 Managing Officer Shinya Furukawa Jun. 2006 Managing Officer Toru Watanabe Jan. 2017 Project General Manager of Accounting & Finance
Jun. 1997 Managing Director Jun. 2008 Senior Managing Officer Jun. 2008 Senior Managing Officer Dept.
Jun. 2010 Senior Managing Director Jun. 2020 Audit & Supervisory Board Member (current)
Jun. 1999 Senior Managing Director Jun. 2010 Senior Managing Director
Jun. 2015 Executive Vice President
Jun. 2002 Executive Vice President Jun. 2013 President (current) Jun. 2018 Audit & Supervisory Board Member (current)
Jun. 2005 President
Jun. 2013 Chairman (current)

Executive Vice Apr. 1977 Joined Toyota Industries Corporation Apr. 1980 Joined Toyota Motor Co., Ltd.
Executive Vice Outside Audit & Supervisory Apr. 1978 Joined Chubu Electric Power Co., Inc. (Chubu Electric Outside Audit & Supervisory Apr. 1977 Joined Toyota Motor Sales Co., Ltd.
President Jun. 2003 Director President Jun. 2009 Managing Officer of Toyota Motor Corporation (TMC) Board Member Power) Board Member Jun. 2005 Managing Officer of Toyota Motor Corporation (TMC)
Kazue Sasaki Jun. 2006 Managing Officer Takuo Sasaki Jun. 2011 President of Toyota Financial Services Corporation (Independent) Jun. 2008 Director, Senior Managing Executive Officer and General (Independent) Apr. 2011 Senior Managing Officer of TMC
Jun. 2008 Senior Managing Officer Jun. 2011 Advisor of TMC Akihisa Mizuno Manager of Corporate Planning & Strategy Div. of Chubu Masanao Tomozoe Apr. 2011 Senior Vice President of Toyota Motor North
Jun. 2010 Director Electric Power America, Inc.
Apr. 2013 Managing Officer of TMC
Jun. 2009 Representative Director and Executive Vice President of Jun. 2012 President and Representative Director of Toyota
Jun. 2011 Senior Managing Director Apr. 2015 Advisor of Toyota Industries Corporation Chubu Electric Power Motor Sales & Marketing Corporation
Jun. 2013 Executive Vice President (current) Jun. 2015 Senior Managing Director General Manager of Corporate Planning & Strategy Div. May 2015 Advisor of Central Japan International Airport
Jun. 2016 Director and Senior Managing Officer and General Manager of Affiliated Business Planning & Company, Limited
Jun. 2018 Executive Vice President (current) Development Dept. Jun. 2015 President and CEO of Central Japan International
Jun. 2010 President & Director of Chubu Electric Power Airport
Jun. 2015 Chairman of the Board of Directors of Chubu Electric Jun. 2019 Audit & Supervisory Board Member of Toyota
Power Industries Corporation (current)
Jun. 2016 Audit & Supervisory Board Member of Toyota Industries Jun. 2019 Advisor of Central Japan International Airport
Corporation (current) (current)
Apr. 1983 Joined Toyota Industries Corporation Apr. 2020 Director & Advisor of Chubu Electric Power
Director Apr. 1980 Joined Toyota Industries Corporation Jun. 2020 Advisor of Chubu Electric Power (current)
Jun. 2010 Managing Officer Director
Yojiro Mizuno Jun. 2016 Senior Managing Officer Yuji Ishizaki
Jun. 2012 Managing Officer
Jun. 2016 Senior Managing Officer
Jun. 2018 Director and Senior Managing Officer
Jun. 2018 Director and Senior Managing Officer
Jun. 2019 Director and Senior Executive Officer (current)
Jun. 2019 Director and Senior Executive Officer (current)
Senior Executive Officers
Yojiro Mizuno* Yuji Ishizaki* Masahiro Kawaguchi Koichi Ito

Outside Director Apr. 1970 Joined The Tokio Marine & Fire Insurance Co., Ltd.
(Independent) (Tokio Marine) Outside Director Apr. 1975 Joined Mitsubishi Electric Corporation
(Independent) (Mitsubishi Electric)
Shuzo Sumi Jun. 2000 Director and Chief Representative in London of Tokio Marine
Kenichiro
Jun. 2002 Managing Director of Tokio Marine Apr. 2006 Executive Officer of Mitsubishi Electric Masanori Shirahama Toshihiko Shimizu Yasushi Kawai Brett Wood
Oct. 2004 Managing Director of Tokio Marine & Nichido Fire Insurance Yamanishi Apr. 2008 Senior Executive Officer of Mitsubishi Electric
Co., Ltd. (Tokio Marine & Nichido) Apr. 2010 Representative Executive Officer and President &
Jun. 2005 Senior Managing Director of Tokio Marine & Nichido CEO of Mitsubishi Electric
Jun. 2007 President and Chief Executive Officer of Tokio Marine & Jun. 2010 Director, Representative Executive Officer and
Nichido President & CEO of Mitsubishi Electric
Jun. 2007 President and Chief Executive Officer of Tokio Marine Apr. 2014 Chairman of Mitsubishi Electric
Holdings, Inc. (Tokio Marine Holdings) Jun. 2015 Director of Toyota Industries Corporation (current)
Jun. 2013 Chairman of the Board of Tokio Marine & Nichido Apr. 2018 Director and Executive Corporate Adviser of
Jun. 2013 Chairman of the Board of Tokio Marine Holdings Mitsubishi Electric
Jun. 2014 Director of Toyota Industries Corporation (current) Jun. 2018 Executive Corporate Adviser of Mitsubishi Electric
Apr. 2016 Counselor of Tokio Marine & Nichido (current) (current) Hiroshi Matsumoto Kota Otoshi Kazunari Masuoka
Jun. 2019 Retired as Chairman of the Board of Tokio Marine Holdings

Apr. 1975 Joined Toyota Motor Co., Ltd.

Outside Director Jun. 2004 Managing Officer of Toyota Motor Corporation (TMC)
Mitsuhisa Kato Jun. 2006 President of Toyota Technocraft Co., Ltd.
Jun. 2006 Advisor of TMC
Jun. 2007 Retired as Advisor of TMC * Concurrently serving as directors
Jun. 2010 Retired as President of Toyota Technocraft
Jun. 2010 Senior Managing Director of TMC
Jun. 2011 Senior Managing Officer of TMC
Jun. 2012 Executive Vice President of TMC Executive Officers
Jun. 2015 Director of Toyota Industries Corporation (current)
Apr. 2016 Chairman of Toyota Central R&D Labs., Inc. Hiroaki Kayukawa Toru Inagawa Norio Wakabayashi Hiroaki Matsuda
Apr. 2017 Director of TMC Hisashi Ichijo Nobutomo Yasui Shunji Sugimoto Hisanori Miyajima
Jun. 2017 Senior Advisor of TMC
Jun. 2018 Retired as Senior Advisor of TMC Kenichi Onishi Hiroshi Fukagawa Norio Otake Hiroya Akatsuka
Jun. 2020 Retired as Chairman of Toyota Central R&D Labs.
Jun. 2020 Advisor of Toyota Central R&D Labs. (current) Yoichiro Yamazaki Keitaro Hara Shinya Mizutani Sotaro Kumazawa
Haruhiko Kimata Hiroshi Kobayashi Ken Suito Takehiko Oishi

68 Toyota Industries Report 2020 69

 Company Introduction Strategies and Businesses Promotion of ESG Initiatives Corporate Information

Major Bases

Web

Major Bases (Production, Regional Headquarters, etc.) (As of June 30, 2020)
Link to the list of bases.

■■ Europe ■■ Japan
■
1 Kariya Plant ■
4 Nagakusa Plant ■
8 Higashiura Plant
■
20 Toyota Material ■
24 Vanderlande
Obu-shi, Aichi Higashiura-cho, Chita-gun, Aichi
Kariya-shi, Aichi
Handling Europe AB Industries Holding B.V.
Main products: Textile machinery, Main products: Vehicles Main products: Compressor parts ■
10 Aichi Corporation
President & CEOErnesto Domínguez President & CEO Remo Brunschwiler compressors Start of operations: 1967 Start of operations: 2002
Mjölby, Sweden Veghel, The Netherlands PresidentToshiya Yamagishi
Start of operations: 1927 Ageo-shi, Saitama
Business activities: European headquarters Business activities: Provision of logistics ■
5 Takahama Plant ■
9 Anjo Plant
for materials handling equipment production solutions ■
2 Obu Plant Takahama-shi, Aichi Anjo-shi, Aichi Business activities: Production, sales
and sales Establishment: 1949 and after-sales services of aerial work
Obu-shi, Aichi Main products: Materials handling Main products: Electronic equipment
Establishment: 1946 platforms
Main products: Compressor parts equipment, materials handling systems Start of operations: 2007 Establishment: 1962
■
25 TD Deutsche Start of operations: 1944 Start of operations: 1970
■
21 Toyota Material Handling Klimakompressor GmbH
■
3 Kyowa Plant ■
6 Hekinan Plant
Manufacturing Sweden AB PresidentKazushige Murao
Obu-shi, Aichi Hekinan-shi, Aichi
Managing DirectorKristian Björkman Bernsdorf, Germany
Main products: Electronic equipment, Main products: Diesel engines,
Mjölby, Sweden Business activities: Production of gasoline engines
automotive press dies, production
Business activities: Production of compressors
Establishment: 1998
facilities, engine parts Start of operations: 1982 ■■ The Americas
materials handling equipment Start of operations: 1953
Establishment: 1946 ■
7 Higashichita Plant

■
26 Uster Handa-shi, Aichi ■
11 Toyota Material Handling ■
14 Toyota Advanced Logistics

■
22 Toyota Material Handling Technologies AG Main products: Foundry parts, North America, Inc. North America, Inc.
Manufacturing Italy S.p.A. Thomas Nasiou diesel engines
CEO President & CEOBrett Wood President & CEO Mike Romano
Uster, Switzerland Start of operations: 2000
Managing Director Giorgio Polonio Columbus, Indiana, U.S.A. Indianapolis, Indiana, U.S.A.
Bologna, Italy Business activities: Production, sales and Business activities: U.S. headquarters for Business activities: U.S. headquarters for
after-sales services of quality measurement materials handling equipment production logistics solutions
Business activities: Production of
instruments for fiber, yarn and fabric ■3
materials handling equipment ■4■ 2 and sales Establishment: 2017
Establishment: 1875 ■
8■ 1 Establishment: 2010
Establishment: 1942
■
7■5■ 9
■6
■ ■
12 Toyota Material
23 Toyota Material Handling ■
20 ■
21
Manufacturing France SAS Handling , Inc. ■
15 Bastian Solutions, LLC

Mike Romano
24 ■ 25 President & CEO Jeff Rufener CEO
Managing Director Philippe Mahé ■ Indianapolis, Indiana, U.S.A.
Columbus, Indiana, U.S.A.
Ancenis, France ■
23 ■
26
■
Business activities: Production of ■22
■ 12 ■
11 ■ 17
13 Business activities: Production and sales Business activities: Integration of
of materials handling equipment logistic systems
materials handling equipment ■
14 ■
15
Establishment: 1995
■
31 ■
34 ■
10 ■18 Establishment: 2020 Establishment: 1952
■
29 ■
30 ■
16

■
16 Toyota Industries
■
33
Commercial Finance, Inc.
■
13 The Raymond Corporation
■
27 ■
28
President ＆ CEO Mark Taggart
CEO Mike Field
Dallas, Texas, U.S.A.
Greene, New York, U.S.A.
Business activities: Sales financing for
Business activities: Production, sales and
materials handling equipment
■
32 after-sales services of materials handling
Establishment: 2014
equipment
Establishment: 1922
■■ Asia ■
19 ■
17 Michigan Automotive
■
19 Toyota Material Handling
Compressor, Inc.
■
31 Yantai Shougang TD Mercosur Indústria e Comércio
■
27 Toyota Industries Engine ■
29 Toyota Industry (Kunshan) Automotive Compressor ■
33 Tailift Material Handling de Equipamentos Ltda PresidentHisashi Kusaba
India Private Limited Co., Ltd. Co., Ltd. Taiwan Co., Ltd. Parma, Michigan, U.S.A.
President Hiroshi Kuriyama
Business activities: Production of
Managing DirectorYoshimitsu Hayashi PresidentKeizo Hara PresidentYasushi Watanabe CEO Eric Lin São Paulo, Brazil
compressors
Bangalore, India Kunshan, Jiangsu, China Yantai, Shandong, China Taichung, Taiwan Business activities: Production, sales Establishment: 1989
Business activities: Production of diesel Business activities: Production of Business activities: Production of Business activities: Production, sales and and after-sales services of materials
engines materials handling equipment and compressors after-sales services of materials handling handling equipment
Establishment: 2015 automotive parts, etc. Establishment: 2012 equipment Establishment: 2004 ■
18 TD Automotive
Establishment: 1994 Establishment: 2014 Compressor Georgia, LLC
PresidentHiroto Ikeno
Pendergrass, Georgia, U.S.A.
■
28 Kirloskar Toyota Textile ■
30 TD Automotive Compressor ■
32 P.T. TD Automotive ■
34 Global Power Co. Ltd.
Business activities: Production of
Machinery Pvt. Ltd. Kunshan Co., Ltd. Compressor Indonesia (Tailift)
compressors
Managing DirectorToshihiko Shimizu PresidentAkira Fujii PresidentMasaya Nakamura PresidentAmy Lin Establishment: 2004
Bangalore, India Kunshan, Jiangsu, China Bekasi, Indonesia Qingdao, Shandong, China
Business activities: Production, sales and Business activities: Production of Business activities: Production of Business activities: Production, sales and
after-sales services of textile machinery compressors compressors after-sales services of materials handling
Establishment: 1995 Establishment: 2005 Establishment: 2011 equipment
Establishment: 2000
70 Toyota Industries Report 2020 71
 Investor Information (As of March 31, 2020)

Corporate Head Office Stock Exchange Listings

TOYOTA INDUSTRIES CORPORATION Tokyo and Nagoya (Ticker Code: 6201)
2-1, Toyoda-cho, Kariya-shi, Aichi, 448-8671, Japan
Telephone: +81-(0)566-22-2511 Number of Shareholders
Facsimile: +81-(0)566-27-5650 15,814

Date of Establishment Independent Accountant

November 18, 1926 PricewaterhouseCoopers Aarata LLC
Otemachi Park Building 1-1-1 Otemachi, Chiyoda-ku, Tokyo,
Common Stock 100-0004, Japan
No par value
Authorized: 1,100,000,000 shares Transfer Agent
Issued: 325,840,640 shares Special Account Management Institution
(including treasury stock) Mitsubishi UFJ Trust and Banking Corporation
Share unit: 100 shares 1-4-5, Marunouchi, Chiyoda-ku, Tokyo, 100-8212, Japan

Capital Stock
80,462 million yen

Major Shareholders
Number of Shares Held Percentage of Total Shares in Issue
Name
(Thousands) (Except for Treasury Stock) (%)
Toyota Motor Corporation 76,600  24.67
DENSO Corporation 29,647  9.55
Towa Real Estate Co., Ltd. 16,291 5.25
Toyota Tsusho Corporation 15,294  4.93
The Master Trust Bank of Japan, Ltd. (Trust Account) 14,598   4.70
Japan Trustee Services Bank, Ltd. (Trust Account) 11,173  3.60
Nippon Life Insurance Company 6,580  2.12
Aisin Seiki Co., Ltd. 6,578  2.12
Aioi Nissay Dowa Insurance Co., Ltd. 4,903  1.58
NORTHERN TRUST CO. (AVFC) RE SILCHESTER INTERNATIONAL
4,512  1.45
INVESTORS INTERNATIONAL VALUE EQUITY TRUST
Total 186,180   59.96

Notes: 1. Toyota Industries Corporation also holds 15,357 thousand shares of treasury stock but is excluded from the above list.
2. Shares held for the purpose of trust services of respective financial institutions are as follows:
The Master Trust Bank of Japan, Ltd. (Trust Account) 14,598 (Thousands)
Japan Trustee Services Bank, Ltd. (Trust Account) 11,173 (Thousands)
NORTHERN TRUST CO. (AVFC) RE SILCHESTER INTERNATIONAL INVESTORS
INTERNATIONAL VALUE EQUITY TRUST 4,512 (Thousands)

Distribution of Shares 0.7%

4.7%
6.2%

Japanese corporate entities

Japanese financial institutions
19.7% 48.3% Foreign corporate entities and others
Individuals, etc.
Treasury stock
20.4% Japanese brokerages

72 Toyota Industries Report 2020

 Toyota Industries Report 2020
Toyota Industries Report

2-1, Toyoda-cho, Kariya-shi, Aichi 448-8671, Japan

Telephone: +81-(0)566-22-2511 Facsimile: +81-(0)566-27-5650
https://www.toyota-industries.com/
Year ended March 31, 2020

This report is printed on FSC™-certified paper that contributes to forest conservation

with ink derived from vegetables.
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