Annual Report 2007: Year Ended March 31, 2007

ANNUAL REPORT 2007
Year ended March 31, 2007

Profile
Toyota Industries Corporation was founded in
1926 to manufacture and sell automatic looms
(weaving machines) invented by Sakichi Toyoda.
In the ensuing years, Toyota Industries extended
the scope of its business domains to encompass
textile machinery, automobiles (vehicles, engines, car
air-conditioning compressors), materials handling
equipment, electronics and logistics. With production
bases in North America, Europe and Asia, including
Japan, China and India, as well as a worldwide sales
network, mainly in its Materials Handling Equipment
and Textile Machinery segments, the operations of
the Toyota Industries Group span the globe.
In November 2006, Toyota Industries celebrated the
80th anniversary of its founding. Looking ahead, we
remain committed to actively undertaking initiatives
aimed at achieving further development and growth.
Definition of Terms
“Fiscal 2007” refers to the fiscal year ended March 31, 2007, and other fiscal years are referred to in a corresponding manner. All references to the “Company” herein are to Toyota Industries
Corporation, and references to “Toyota Industries,” “Toyota Industries Group” or the “Group” herein are to the Company and its 162 consolidated subsidiaries.
Cautionary Statement with Respect to Forward-Looking Statements

This annual report contains projections and other forward-looking statements that involve risks and uncertainties. The use of the words “expect,” “anticipate,” “estimate,” “forecast,” “plan” and
similar expressions is intended to identify such forward-looking statements. Projections and forward-looking statements are based on the current expectations and estimates of Toyota Industries
Corporation and its Group companies regarding their plans, outlook, strategies and results for the future. All such projections and forward-looking statements are based on management’s
assumptions and beliefs derived from the information available to it at the time of producing this report and are not guarantees of future performance. Toyota Industries and its Group companies
undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Therefore, it is advised that you should
not rely solely upon these projections and forward-looking statements in making your investment decisions. You should also be aware that certain risks and uncertainties could cause the actual
results of Toyota Industries Corporation and its Group companies to differ materially from any projections or forward-looking statements discussed in this report. These risks and uncertainties
include, but are not limited to, the following: (1) reliance on a small number of customers, (2) product development capabilities, (3) intellectual property rights, (4) product defects, (5) price
competition, (6) reliance on suppliers of raw materials and components, (7) environmental regulations, (8) success or failure of strategic alliances with other companies, (9) exchange rate
fluctuations, (10) share price fluctuations, (11) effects of disasters, power blackouts and other incidents, (12) latent risks associated with international activities and (13) retirement benefit liabilities.
Contents
2 Financial Highlights
4 Letter to Shareholders
14 At a Glance
16 Focus on Business
16 Materials Handling Equipment
26 Car Air-Conditioning Compressor
30 Automobile
36 Logistics
38 Textile Machinery
40 Electronics
42 Research and Development

44 Corporate Governance
46 Environmental and Social Contribution Efforts
48 History
50 Corporate Data
52 Directors, Corporate Auditors and Managing Officers
53 Financial Section
54 Consolidated Eleven-Year Summary
56 Management’s Discussion and Analysis of
Financial Condition and Results of Operations
66 Consolidated Balance Sheets
68 Consolidated Statements of Income
69 Consolidated Statements of Changes in Net Assets
70 Consolidated Statements of Cash Flows
71 Notes to Consolidated Financial Statements
92 Reports of Independent Auditors
94 Toyota Industries in Numbers

98 Investor Information
Toyota Industries Corporation Annual Report 2007 1

Financial Highlights
Toyota Industries Corporation

Years ended March 31
Thousands of
Millions of yen U.S. dollars
% change
2007 2006 2005 2004 2003 2007 vs 2006 2007
For the Year
Net sales ¥1,878,398 ¥1,505,955 ¥1,241,538 ¥1,164,378 ¥1,069,218 24.7% $15,911,886
Operating income 89,954 64,040 53,120 52,631 52,477 40.5 762,002
Ordinary income 108,484 80,635 70,912 58,970 51,375 34.5 918,971
Net income 59,468 47,077 43,357 33,623 21,933 26.3 503,756

Depreciation and amortization 106,060 87,287 70,213 65,351 59,154 21.5 898,433
Capital expenditures 166,505 158,835 136,506 89,508 87,559 4.8 1,410,466
Research and development expenses 34,548 31,166 30,051 29,562 29,705 10.9 292,657
Per Share Data (yen, U.S. dollars)
Net income — basic ¥189.88 ¥146.16 ¥135.09 ¥108.04 ¥70.19 29.9% $1.61
Net income — diluted 189.66 146.02 135.03 101.97 62.90 29.9 1.61
Cash dividends 50.00 38.00 32.00 24.00 22.00 31.6 0.42
At Year-End
Total assets ¥3,585,857 ¥3,245,341 ¥2,326,824 ¥2,011,995 ¥1,650,391 10.5% $30,375,755
Total net assets 1,810,483 1,611,227 1,115,747 1,016,763 738,867 12.4 15,336,578
Number of employees 36,096 32,977 30,990 27,431 25,030 9.5

Note: U.S. dollar amounts have been translated from yen, for convenience only, at the rate of 118.05 yen = US$1, the exchange rate on March 31, 2007.
All the amounts throughout this report are rounded down.
Sales by Business Segment

Thousands of
2007 2006 2005 2004 2003 2007
Net sales
Automobile ¥904,893 ¥746,795 ¥616,200 ¥603,862 ¥595,459 $7,665,345
Materials Handling Equipment 767,237 595,236 503,989 443,443 373,007 6,499,258

Logistics 89,470 65,145 – – – 757,908
Textile Machinery 58,403 49,789 43,902 45,968 48,740 494,735
Others 58,392 48,988 77,446 71,103 52,010 494,641
2 Toyota Industries Corporation Annual Report 2007

Net Sales Operating Income Net Income
(¥ Billion) (¥ Billion) (¥ Billion)
2,000 100 60
50
80
1,500
40
60
1,000 30
40
20
500
20
10
0 0 0
FY 03 04 05 06 07 FY 03 04 05 06 07 FY 03 04 05 06 07
Overseas Sales Total Assets Total Net Assets
(¥ Billion) (¥ Billion) (¥ Billion)

1,000 4,000 2,000
750 3,000 1,500
500 2,000 1,000
250 1,000 500
0 0 0
FY 03 04 05 06 07 FY 03 04 05 06 07 FY 03 04 05 06 07
Net Income per Share (Basic) Cash Dividends per Share and R&D Expenses
Consolidated Payout Ratio
(¥) (¥) (%) (¥ Billion)
200 50 50 40
40 40
150 30
30 30
100 20
20 20
50 10
10 10
0 0 0 0
FY 03 04 05 06 07 FY 03 04 05 06 07 FY 03 04 05 06 07
Payout ratio (right)

Tadashi Ishikawa Tetsuro Toyoda
Chairman President
Letter to Shareholders
The fiscal year ended March 31, 2007 (fiscal 2007), was an important year for Toyota Industries in
two major respects. First, we reached a milestone by marking the 80th anniversary of our founding,
and second, we initiated our new Medium-Term Management Plan announced in fall 2005.
In reflecting back on the past 80 years, our history can be characterized by our consistent
dedication to manufacturing. The Toyoda Type G automatic loom (weaving machine) completed in
1924 by company founder Sakichi Toyoda was significant because this weaving machine was able
to quickly detect breaking of yarn during the weaving process and automatically stop operating.
The development of this weaving machine highlighted a strong desire to eliminate waste and avoid
sending defective goods to post-processes. Guided by this thinking, which represents Toyota
Industries’ origins, together with the spirit of “contributing to society through manufacturing,” which
has been handed down through successive generations, we have steadily broadened the scope of

our business over the years from textile machinery to such domains as vehicles, automotive parts,
materials handling equipment and electronics.
Toyota Industries’ businesses today are extensions of these domains, in which we have
compiled many achievements.
New Medium-Term Management Plan Gets Off to a

Smooth Start
The underlying objectives of Toyota Industries’ new Medium-Term Management Plan are to spur
further growth and raise corporate value. In tandem, our Vision 2010 embodies our aspirations
for the type of company we seek to be in 2010. Under this vision, Toyota Industries is striving to
enhance our team strengths and spirit across all businesses and generations and in turn promote
the development of advanced technology and strengthening of our value chain while also fostering
change, with the goal of becoming “Undisputed No. 1.” Regarding financial targets for fiscal 2011,
the Medium-Term Management Plan aims for consolidated net sales of more than ¥2,000 billion
and ordinary income of ¥140.0 billion as of the end of fiscal 2011.
Fiscal 2007 marked the first year of our new Medium-Term Management Plan and thus was
an extremely important year in getting off to a smooth start and firmly on track toward realizing
our targets. Consolidated net sales amounted to ¥1,878.3 billion, an increase of ¥372.4 billion, or
24.7%, over the previous fiscal year. At the profit level, operating income increased ¥25.9 billion, or
40.5%, to ¥89.9 billion, and ordinary income increased ¥27.8 billion, or 34.5%, to ¥108.4 billion,
Medium-Term Management Plan

¥140.0
Ordinary Income 115.0
(¥ Billion) 108.4
80.6
70.9 Over
58.9 ¥2,000.0
1,950.0 Textile Machinery, etc.
1,878.3
Net Sales ¥1,000 billion in
(¥ Billion)
1,505.9 Materials Handling
Equipment-related
1,241.5 businesses
1,164.3
¥1,000 billion in
Automobile-related
businesses
FY 04 05 06 07 08 11
(Projection) (Targets) (Announced Oct. 2005)

as an increase in depreciation expenses and rising prices of raw materials were offset by increased
net sales and the effects of cost-reduction efforts. These figures represent record highs and mark
our eighth consecutive year of increased net sales and ordinary income.
Implementation of Strategies for All Business

Segments Firmly Underway
Solid execution of medium-term strategies and forward-looking initiatives in our main businesses
resulted in strong performances in fiscal 2007. Specific measures implemented in these segments
are outlined below.
Materials Handling Equipment Segment

We anticipate that the global market for lift trucks will experience mild growth overall. Sharp growth
is expected particularly in emerging economies such as the BRICs (Brazil, Russia, India and China)
nations. Additionally, we foresee rising demand for products that consider the environment and the
safety of customers.
By accurately responding to market trends and the needs of our customers, we plan to record
higher unit sales and raise our global share to secure our position as “Undisputed No. 1” in the
global lift truck market.
Our medium-term strategy for attaining these goals contains two important tasks. The first is
to offer superior product value, and the second is to maximize synergies between the TOYOTA
brand, the global leader in counterbalanced lift trucks, and the BT brand, the world’s top name in
warehouse trucks.
As the first step of this strategy, in September 2006 we carried out a full model change for
TOYOTA brand’s mainstay 1- to 3.5-ton GENEO (8-Series and Toyota Tonero overseas) internal
combustion counterbalanced lift trucks and commenced production at the Takahama Plant in
Japan. We also started production of
this new lift truck in the United States
in January 2007 and plan to inaugurate
production in France in fall 2007.
Based on the concept of setting new
standards for safety and environmental
friendliness, the new GENEO offers greater
safety, meets environmental regulations
ahead of schedule and offers improved
comfort and ease of operation,
thus providing a differentiated
value unmatched by competitor New GENEO (8-Series and Toyota Tonero)
internal combustion counterbalanced lift truck
products. Following its launch, the

Tetsuro Toyoda Hybrid Lift Truck

President
new GENEO has earned high acclaim from many customers. With this strategic lift truck, we plan
to aim for higher market share and increased profitability in working to be “undisputed No. 1” in the
global lift truck market.
With an eye toward maximizing synergies between the TOYOTA brand and the BT brand, in
April 2006 we officially launched the Toyota Material Handling Group (TMHG) as the framework for
integrating both entities. In undertaking operations, TMHG implements optimal policies in global
markets that are divided into the four geographic regions of Japan, North America, Europe and
International.
At the same time, key functions such as quality, R&D and plant operations are handled
taking a cross-sectional approach that transcends all geographic regions as we utilize the entire
capabilities of the Toyota Industries Group in making improvements and innovations. The launch
of TMHG has already yielded and we believe will continue to generate important synergies that
include mutually supplying each other’s brand products, undertaking joint development, promoting
the implementation of the Toyota Production System (TPS) at production bases worldwide
and reorganizing sales structures. Looking ahead, we plan to focus on the timely planning and
introduction of competitive new products and improvement of after-sales service.

Automobile Segment
The Automobile Segment is another pillar of the
Toyota Industries Group’s business along with the
Materials Handling Equipment Segment.
Greater global demand for compact cars is
expected due to rising crude oil prices, while
Toyota Motor Corporation’s (TMC) domestic
production is likely to remain at a high level.
In view of these circumstances, we will strive
to expand our role within the Toyota Group Nagakusa Plant
backed by our strength—always aiming to be

global No. 1 in terms of quality, cost and delivery (QCD)—that we have cultivated as a manufacturer
specializing in compact and midsize cars.
We have achieved smooth progress up through fiscal 2006 in establishing, increasing and
strengthening plant infrastructure and assembly lines. Accordingly, we now operate a solid structure
capable of stable production exceeding 350,000 units annually, up from just over 200,000 units
previously.
During fiscal 2007, we continued full-scale production of the Vitz (Yaris outside Japan) and the
RAV4 and attained record-high sales of 350,000 units. We intend to make further improvements in
QCD to ensure continued high levels of production as we work to further strengthen collaboration
between Toyota Industries and TMC. At the same time, we expect to continue to upgrade our
development capabilities and expand our roles in both production and development.
In the Engine Business, mounting concerns about the environment have led to a high level of
demand for clean diesel engines in Europe. Meanwhile, Japan and the United States are witnessing
moves to reevaluate diesel engines given their excellent energy efficiency. In addressing these
trends, we aim to become a top manufacturer of diesel engines within the Toyota Group from both
a development and production perspective.
From fiscal 2006, Toyota Industries began producing two globally strategic engines. These
include AD diesel engines, a clean, quiet and
fuel-efficient new-generation diesel engine
jointly developed with TMC, and KD diesel
engines for TMC’s Innovative International Multi-
Purpose Vehicle (IMV) Project. In fiscal 2007, we
maintained high production levels of these engines
throughout the year and increased our production
volume from over 300,000 units to 490,000 units.
We also proceeded firmly on a number of fronts
to strengthen our development capabilities by
New engine testing center
taking steps that included constructing a new

testing center and increasing development staff. In responding accurately to TMC’s strategies, we
will strive to even more fully utilize our development and production capabilities within the Toyota
Group.
In the Car Air-Conditioning Compressor Business, although the rise in the percentage of new
vehicles fitted with air conditioners in the European market has slowed down, we foresee a growing
need for fuel-efficient air conditioners. Additionally, we anticipate higher demand particularly in
emerging markets such as the BRICs due to an increase in automobile sales.
Regarding medium-term targets, as a top manufacturer, Toyota Industries will aim to further
expand global market share while striving to increase its earnings power via thorough cost
reductions.
As we receive steadily increasing orders from
customers, our overriding theme is to respond
accurately to such increases by establishing an
optimized, global and flexible production structure.
Accordingly, Toyota Industries has made smooth
strides in expanding production capabilities.
Achievements include the start of production at
a second North American production base in the
U.S. state of Georgia in December 2005 followed
TD Automotive Compressor Kunshan Co., Ltd.
by the commencement of production at a plant
in China in April 2006. We are also focusing efforts on further expanding sales to automakers,
and during fiscal 2007 these efforts have enabled us to secure new customers, mainly comprising
European manufacturers of compact cars.
As a result, in fiscal 2007 we sold 20.45 million car air-conditioning compressors, surpassing 20
million units for the first time. Deploying our technological superiority as a competitive advantage,
we plan to continue to develop cutting-edge technologies and new products that contribute to new
car development as we respond to an ever-greater need for car air-conditioning compressors for
hybrid vehicles in addition to conventional engine-powered vehicles.
The Automobile Segment is also involved in car electronics and automotive stamping dies.
In other words, this segment is active in a broad range of fields covering the entire automobile
business from vehicle assembly and engines to components. To prevail amid severe competition,
we intend to strengthen collaboration among these businesses to leverage our strong overall
capabilities.
With this in mind, in January 2007 we established the Automotive Headquarters to fortify
collaboration among respective businesses in the Automobile Segment. We have now consolidated
and achieved close cooperation among the vehicle assembly, engine, automotive stamping dies and
car electronics businesses to create synergies. In so doing, we are actively contributing to TMC’s
global strategy. Besides strengthening each individual business, we plan to focus on increasing our
total strengths while elevating the potential and performance of the Automobile Segment.

Textile Machinery Segment
Ever since our founding, textile
machinery has been tantamount to
a “family business,” and a strong
performance by this segment
energizes all employees of the
Toyota Industries Group. In fiscal
2007, this segment posted excellent
JAT710 air-jet loom
results, as sales of our mainstay air-
jet looms surpassed 10,000 units due to extremely buoyant conditions that included extraordinary
demand in China. As an easy-to-understand example, the continuous operation of 10,000 air-
jet looms for one month would weave enough material for dress shirts for 100 million people, a
number that virtually corresponds to Japan’s entire population. Compared with the Toyoda Type G
automatic loom of 80 years ago, current air-jet looms boast four times greater weaving width and
six times higher weaving speed, thus giving these weaving machines 24 times the productivity.
Up until approximately five years ago, total worldwide demand for air-jet looms was around
10,000 units annually, but subsequently surged to over 20,000 units annually since 2002. Along
with improvements in air-jet loom productivity, the main factor driving this increase has been
technological innovations in air-jet looms enabling the production of fabrics that were previously
difficult to produce unless using other machines such as rapier weaving machines.
For fiscal 2008 and beyond, we plan to further strengthen the product appeal of our air-jet
looms and maintain our position as the global leader as we continue the legacy of our “family
business.”
Refocusing on the Basics of Manufacturing and

Strengthening the Company’s Constitution
To continue “contributing to society through manufacturing,” sustainable growth and development
is imperative. Maintaining an unwavering commitment to this concept, we believe that refocusing
on the “basics of manufacturing” is of paramount importance at the juncture of our 80th
anniversary.
Accordingly, in fiscal 2007 we pursued further growth and development with a renewed spirit
by thoroughly promoting guidelines focused on the basic thinking and behavior for all employees of
the Toyota Industries Group.
Attracting Highly Ambitious Individuals and Creating a Vibrant Workplace

Toyota Industries has designated “enhance team strength and spirit” as the main thrust of its Vision
2010 and a core initiative for driving future growth. Realizing this concept hinges on further raising the
level of every employee’s unique skills and specialized techniques as well as management capabilities.

As a key focal point, in fiscal 2007 Toyota

Industries promoted the cultivation of personnel
possessing the skills, perspectives and spirit
of TPS in all business divisions, with each
division working to attain clearly defined targets.
Concurrently, the Corporate Center (corporate
headquarters) upgraded TPS training programs
and undertook TPS training by encouraging the
participation of staff and providing TPS support
Technical Learning Center
for each business division. Determined to
accelerate the development of personnel possessing top-caliber skills and techniques as well as
the required execution capabilities in terms of manufacturing, we further enhanced our Technical
Training Center with the establishment of the Engineering Education Office and began operations in
January 2007 as the Technical Learning Center.
With the adoption of these measures, we believe that the strengths of each individual are
steadily advancing. Combined with these assets, we believe that a “spirit of harmony,” namely,
teamwork and an overarching sense of humanity, will serve as a cornerstone needed to fully
utilize our team strengths. We will press forward with the creation of a spirited workplace where
communication flows smoothly and employees can gather for positive discussions and work to
their fullest abilities with a high sense of motivation.
Making Strides in Global Environmental Management

No discussion concerning corporate management can take place in the 21st century without
mentioning environmental concerns. Toyota Industries has continually carried out environmental
management and proactive information disclosure over the course of three successive
environmental action plans. Under our Third Environmental Action Plan completed in fiscal 2006,
Toyota Industries achieved all numerical targets, which included reducing CO2 emissions by 5%
compared with fiscal 1991 levels and attaining a 50% reduction of targeted PRTR (pollutant release
and transfer register) substances compared with fiscal 1999 levels.
The increased environmental load results not only from the production process but also the use of
products by customers. Driven by this awareness, we are making unprecedented efforts to expand
our lineup of ecological products under our Fourth Environmental Action Plan launched in fiscal 2007.
In the automobile field, for example, Toyota Industries is working on the development of products that
reduce CO2 emissions, including diesel engines and key components for hybrid vehicles. We believe
that these efforts will also spawn new business opportunities further down the road.
We plan to expand this approach to all Toyota Industries Group companies and work to build
global environmental management to vigorously reduce emissions of greenhouse gases, utilize
resources more efficiently and reduce environmental risk factors, which we believe will allow us to
resolutely fulfill our corporate responsibility.

Building Quality into Our Own Processes
and Assuring Quality for Customers
One aim of Toyota Industries’ manufacturing philosophy
is to ensure that customers can use our products with
a sense of reassurance worldwide. Based on TPS and
Total Quality Management (TQM), our development,
design, production technology, manufacturing and quality
assurance divisions act in unison, with design reviews as
a core element, as part of our steadfast efforts to attain
quality. Reflecting the success and recognition of these
quality initiatives, in fiscal 2007 the Automobile Segment
once again earned the Superior Quality Performance
Award presented to suppliers by TMC. Superior Quality Performance Award
Our approach to quality initiatives is unrelenting. For
instance, we believe that the presidential guidelines issued at the beginning of fiscal 2008 ensure
that all employees thoroughly understand the meaning of “quality assurance.” Fully absorbing
this concept will further improve our awareness and actions, and each individual will be able to
incorporate quality into his or her own work activities. We believe that employees who take pride
in manufacturing will in turn ensure that no defects are sent to post-processes, thereby ultimately
eliminating problems for our customers.
Thoroughly Ensuring Safe Work

Operations
Safety serves as the basis for earnestly
undertaking manufacturing and represents the
starting point of all our activities. Within the Toyota
Group, we say, “safe work is ‘the door’ to all
work.” In keeping with this stance, all employees
strive to work cohesively in taking steps to ensure
that even the smallest risk is not overlooked and
that the sources of any potential accidents are On-site inspections by top management
clearly eliminated.
As a means of bolstering our safety initiatives in fiscal 2007, we implemented a variety of
initiatives such as improving management systems along with safety inspections and audits by the
executive vice president in charge of overseeing production. At the same time, in accordance with
the theme of making regular on-site inspections, top management continued to visit numerous
worksites in person to confirm that safety is categorically being maintained accompanied by
improvements in quality and productivity.

Raising Corporate Value

Regarding the outlook for fiscal 2008, the global economy is expected to sustain a mild expansion
despite disparities among geographic regions. Nonetheless, there are concerns of risks within
Toyota Industries’ operating environment, including exchange rate fluctuations and rising prices for
crude oil and other raw materials.
In view of these factors, we are aiming for an increase in consolidated net sales of ¥71.7 billion,
or 3.8%, to ¥1,950.0 billion; an increase in operating income of ¥5.1 billion, or 5.6%, to ¥95.0
billion; and an increase in ordinary income of ¥6.6 billion, or 6.0%, to ¥115.0 billion.
We believe this solid performance will be the result of our various management approach.
Above all, we are resolved to making unrelenting efforts to raise corporate value by refocusing on
the basics of manufacturing, strengthening our corporate constitution and providing products that
ensure the satisfaction of customers worldwide.
In closing, we fully appreciate the continued support and guidance of our shareholders,
customers, local communities, and employees and their families.
June 2007
Tadashi Ishikawa
Chairman
Tetsuro Toyoda
President

At a Glance
Automobile Segment Main Products

• Passenger vehicles
• Diesel engines
• Gasoline engines
• Car air-conditioning 7SEU17
RAV4 Compressor
48.2% compressors
• Electronic components for
automobiles
• Foundry parts 2AD DC-DC converter
Percentage of Net Sales • Stamping dies Diesel engine
Materials Handling Main Products

Equipment Segment • Counterbalanced lift
trucks
• Warehouse trucks
• Aerial work platforms
• Automated storage and
40.8%
retrieval systems
• Automatic guided
GENEO (8FG25)
vehicles Internal combustion Reflex TZ-10A type “RR”
Percentage of Net Sales counterbalanced lift truck Reach truck Truck mount aerial work platform
Logistics Segment Main Services

• Land transportation
4.8%
services
• Logistics planning
• Operation of distribution
centers
• Cash collection and
delivery and cash
proceeds management
Percentage of Net Sales
Textile Machinery Main Products

Segment • Ring spinning frames
3.1% • Roving frames
• Drawing frames
• Air-jet looms
• Water-jet looms
• Sizing machines
RX240NEW JAT710
Ring spinning frame Air-jet loom
Others Segment Main Products

• Semiconductor package
3.1% substrates
• Flexible printed circuit
(FPC) substrates
• Manufacturing equipment
• Low-temperature
Wire bonding FPC substrate Low-temperature
polysilicon TFT-LCDs package substrate polysilicon TFT-LCDs

The Automobile Segment is Toyota Industries’ largest business segment and accounts Net Sales Operating Income
for over 48% of consolidated net sales. Within this segment, the Vehicle Business (¥ Billion) (¥ Billion)
manufactures the Vitz (Yaris outside Japan) and RAV4 under consignment from Toyota 1,000 80
Motor Corporation (TMC). The Engine Business produces diesel and gasoline engines 800
60
under consignment from TMC as well as engines for its own materials handling
600
equipment. Commanding the top global share, the Car Air-Conditioning Compressor 40
Business develops and produces fixed-displacement compressors and variable- 400
20
displacement compressors. This segment also produces foundry parts for engines and 200
electronics devices for automobiles. In fiscal 2007, net sales of the Automobile Segment 0 0
were ¥904.8 billion and operating income amounted to ¥33.5 billion. FY 05 06 07 FY 05 06 07
The Materials Handling Equipment Segment manufactures and sells industrial vehicles Net Sales Operating Income
such as lift trucks, aerial work platforms, shovel loaders and tow tractors in addition (¥ Billion) (¥ Billion)
to automated storage and retrieval systems and automatic guided vehicles. Toyota 1,000 80
Industries sells its materials handling equipment under the Toyota L&F (Toyota Industrial 800
60
Equipment outside Japan), BT, Raymond, CESAB and AICHI brands. In fiscal 2007, 600
net sales of the Materials Handling Equipment Segment amounted to ¥767.2 billion. 40
400
Operating income totaled ¥47.2 billion.
20
200
0 0
FY 05 06 07 FY 05 06 07
In addition to engaging in truck cargo transport and warehousing operations, Toyota Net Sales Operating Income
Industries carries out the Logistics Solutions Business for handling all aspects of logistics (¥ Billion) (¥ Billion)
to help customers reduce their logistics costs. We are building proprietary business 100 8
models that strive to optimize the overall flow of “goods,” “cash” and “information” from 80
6
the manufacturer to the consumer. Through these activities, we aim to contribute to the
60
overall optimization of our customers’ logistics. In fiscal 2007, net sales of the Logistics 4
Segment amounted to ¥89.4 billion. Operating income was ¥1.7 billion. 40
2
The logistics-related business, which was included in the Others Segment, had been separated and declared independently as the 20
Logistics Segment starting from fiscal 2006.
0 0
FY 05 06 07 FY 05 06 07
The Textile Machinery Segment produces and sells spinning and weaving machinery. Net Sales Operating Income
Spinning machinery includes the manufacture and sales of high-speed ring spinning (¥ Billion) (¥ Billion)
frames and roving frames while weaving machinery involves the manufacture and sales 100 6
of air-jet looms, which insert weft yarns using air, and water-jet looms, which use water 80
4
for the same purpose. We also manufacture and sell such preparatory machinery for
60
weaving processes as sizing machines and automatic drawing-in machines. In fiscal 2
2007, net sales of the Textile Machinery Segment were ¥58.4 billion, and operating 40
0
income totaled ¥1.0 billion. 20
0 (2)
FY 05 06 07 FY 05 06 07
The Others Segment includes newer businesses that we have entered relatively recently. Net Sales Operating Income
This segment includes TIBC Corporation, a joint venture with Ibiden Co., Ltd. that (¥ Billion) (¥ Billion)
produces semiconductor package substrates. ST Liquid Crystal Display Corp. (STLCD)* 100 8
and ST Mobile Display Corporation (STMD)*, joint ventures with Sony Corporation, 80
6
produce low-temperature polysilicon TFT-LCDs. In fiscal 2007, net sales of the Others 60
Segment amounted to ¥58.3 billion and operating income was ¥6.3 billion. 4
40
* As STLCD and STMD are affiliates and not consolidated subsidiaries, their sales and operating income (losses) are not included in
the consolidated figures, but are accounted for by the equity method. 2
20
The logistics-related business, which was included in the Others Segment, had been separated and declared independently as the
Logistics Segment starting from fiscal 2006. 0 0
FY 05 06 07 FY 05 06 07
Note: Segment net sales figures do not include intersegment transactions. However, segment operating income figures do include operating income (losses) arising from intersegment transactions.

Focus on Business
Materials Handling
Equipment
Share
Our Strength
The Materials Handling Equipment Business is
fortifying its global No. 1 position through the
Toyota Material Handling Group (TMHG), a new
organization that integrates TOYOTA Material
Handling Company (TMHC), the global leader in
counterbalanced lift trucks, and the BT Industries
Group, the world’s top name in warehouse
trucks. The BT Industries Group of companies
were acquired and became subsidiaries of the
Toyota Industries Group in 2000.
Initiating full-scale activities in April 2006,
TMHG is already steadily generating a wide
range of noteworthy achievements. We believe
that TMHG meets customers’ logistics needs
by providing one-stop shopping for products
and services that combine a broad scope of
materials handling equipment with optimal
business solutions. This approach enables
the Company to enhance customers’ logistics
efficiency worldwide, further strengthening
Toyota Industries’ position as a world-leading
supplier of materials handling equipment.
The Materials Handling Equipment Business
also includes Aichi Corporation, a subsidiary
that commands the dominant share of Japan’s
market for aerial work platforms.

Materials Handling Equipment
Market Overview for Materials Handling Equipment
Market for Materials Handling Equipment advance over previous models and incorporates original systems that
Continues to Expand contribute to marked improvements in terms of reduced noise and
Having experienced continuous growth since calendar year 2002 vibration along with both operator safety and comfort and operating
in tandem with a general economic recovery, the global market for efficiency. Production of the newly improved model got underway in
materials handling equipment grew by around 12% in calendar year Japan in September 2006 and in the United States in January 2007,
2006. Despite concerns about soaring prices for crude oil and steel and will begin in Europe in September 2007. The new generation
materials, the outlook from calendar year 2007 onward is also for of lift trucks is sold as the GENEO in Japan, the 8-Series in North
relatively high growth in emerging markets, particularly in the BRICs America and International, and the Toyota Tonero in Europe.
(Brazil, Russia, India and China) countries. Modest expansion in such By improving our previous engines, as a leading manufacturer
key markets as Europe, North America and Japan is also expected. we are able to offer a new series of lift trucks that not only meets
strict exhaust emissions regulations in Japan one year in advance
Rising Safety and Environmental of required implementation but also incorporates leading-edge
Consciousness technologies that satisfy stringent 2010 emissions regulations in
Customer needs within these markets reflect a growing global the United States three years ahead of schedule and meets new
awareness of safety and the environment, as evidenced by steadily European emissions standards that will take effect in 2008.
rising demand for materials handling equipment that not only In addition, a new hand pallet truck based on a new-type
minimizes such dangers as rollover accidents but also stresses pump and manufactured on an entirely new production line was
ergonomics, low noise and low vibration, as well as reduced exhaust introduced in Europe. This truck delivers improved performance and
emissions. is manufactured in an environment-friendly manner that reduces the
As a noteworthy response to customer needs, our new impact on the environment in terms of chemical usage, lower energy
generation of engine-powered lift trucks represents a significant consumption and highly efficient production processes.
Integration of TMHG
Since becoming partners in 2000, TMHC and the BT Industries In managing and carrying out its operations, TMHG has divided
Group have continued to examine each other’s strengths in the its global markets into four regions—Europe, North America,
pursuit of synergies that include mutually supplying respective brand International and Japan—and established a Board as the decision-
products, sharing sales and production know-how, exchanging making body within each of these four regional organizations. A
resources and jointly procuring products. Determining that the time Management Committee composed of TMHG top management and
was ripe for maximizing synergies via the full-scale integration of representatives of each regional organization oversees the formulation
operations, TMHG became operational from April 2006 as a new of strategies and manages TMHG as a whole.
framework integrating TMHC and the BT Industries Group. TMHG has also set up Sub-Committees comprising functional
Organizational Chart of Toyota Material Handling Group
TMHG
Management Committee Global Strategy, Optimum Resource Allocation, Global Management Control
TMHJ
TMHE TMHNA TMHI TMHJ
Toyota Material Handling Toyota Material Handling Toyota Material Handling Toyota Material Handling
Europe North America International Japan
Quality, R&D, Product Planning, Information System/Information Technology, Plant Operation,

Sub-Committees Human Resources and Finance

Focus on Business
sections of each regional organization to handle such principal While the BT and Raymond brands wield strong brand power
functions as Quality, R&D, Product Planning, Information System/ in Europe and North America, respectively, the TOYOTA brand has
Information Technology, Plant Operation, Human Resources and achieved a solid position in Japan, the United States, Europe and
Finance. Cross-sectional linkages permeating the entire organization several International markets (e.g., Australia and a number of Asian
facilitate the sharing of best practices and know-how cultivated countries). In its operations, TMHG intends to firmly maintain its
regionally as well as globally. core TOYOTA, BT and Raymond brands while solidifying the optimal
We are currently pushing ahead with measures aimed at realizing brand and sales structures in each region to ensure that the power of
our target of becoming “Undisputed No. 1” in the global industrial each brand is fully utilized.
truck market, and each of these initiatives has already begun to Through the implementation of these measures, we plan to work
steadily yield important results. Examples of the growing synergies toward capturing an even higher global market share while aiming for
already created include joint product development (e.g., three-wheel a further increase in profitability.
electric lift truck for the European market), development of our own
key components, strengthening of our production structure through TMHG’s Sales in 2006
the horizontal deployment of the Toyota Production System (TPS) TMHG achieved record-high sales of almost 190,000 industrial trucks
throughout the entire group, the reorganization of sales structures in in calendar year 2006. Besides supplying cutting-edge products
a number of regions and enhanced development efficiency through manufactured in Japan, North America, Europe and China, TMHG
the sharing of systems. also provides top-quality services worldwide.
Business Activities in Fiscal 2007 by Geographic Region
Japanese Market Capitalizing on its comprehensive product lineup for materials

Amid a stable Japanese market, unit sales in the overall lift truck handling, TMHJ intends to continue to offer products closely tailored
market increased 5% to 86,000 units in fiscal 2007. to customer needs and provide solid logistics-related solutions.
Calendar year 2006 marked the 50th anniversary since we
commenced sales of lift trucks in Japan. Commemorating this Launch of the Tugcart AGV
occasion, Toyota Material Handling Japan (TMHJ) put more energy Sales of the Tugcart AGV commenced in February 2007 in Japan.
into sales promotion activities, which resulted in an impressive 43% Developed in response to a heightened need for AGVs that enable
market share for domestic sales of lift trucks in fiscal 2007. This customers to reduce their logistics personnel and improve their
means we have maintained the top position in the Japanese lift truck logistics processes, the Tugcart is easy to introduce, plus courses
industry for the 41st consecutive year. In September 2006, TMHJ can be set up or changed by simply affixing magnetic tape on
commenced sales of the new generation of engine-powered 1- to guidepaths. It can also be used with existing carts without the need
3.5-ton internal combustion counterbalanced lift trucks (sold as the for drastic modifications, and though only 19 cm high, boasts high
GENEO in Japan) following a full model change. As its mainstay power with a maximum 1-ton towing capacity. Although the Tugcart
product, the GENEO provides dramatically greater product value AGV is primarily utilized on factory floors within the manufacturing
in terms of safety, environmental attributes and ease of operation, industry at present, its wide range of applications extend from
and is expected to contribute significantly to the performance of the components manufacturers seeking to increase automation to
Materials Handling Equipment Business. product transport in the light manufacturing industry and tray
Aichi Corporation, which is involved in the manufacture and sales services at hospitals. Accordingly, sales expansion will be targeted by
of aerial work platforms, posted increases in both sales and earnings proposing these and other uses.
due to a brisk investment climate as Japanese companies continued
to enjoy strong sales.
The year 2006 also marked the 20th anniversary since we started
sales of materials handling systems. In response to greater demand
for automatic guided vehicles (AGVs), during fiscal 2007 we upgraded
our product lineup with the introduction of the Tugcart, a compact yet
highly powerful AGV that enables a reduction in customers’ logistics
Tugcart AGV
personnel as well as improvements in logistics processes.

North American Market Material Handling Europe (TMHE) established a new sales record for
Toyota Material Handling North America (TMHNA) increased its TOYOTA-, BT- and CESAB-brand units.
lead as the No. 1 materials handling company in North America TMHE took steps to both further develop its central organizational
for the fifth consecutive year. Of significant note was the TOYOTA structure and launch new, unified sales and marketing organizations
brand’s 2006 growth rate, which was nearly double that of the in a number of European markets. Centrally, TMHE unveiled a new
entire U.S. market for management structure and identified areas—including sales, service
industrial trucks. In addition, and marketing—where customers will be better served by integrating
TMHNA launched the highly these support functions.
anticipated new generation European customers, particularly those with large fleets, are
of engine-powered lift trucks increasingly looking for materials handling suppliers who can
(sold as the 8-Series in North provide them with a full range of products, supported by services,
America). fleet management systems, as well as the flexibility of lease and
The 8-Series, with rental programs. To address these evolving market demands,
70% less smog-forming TMHE created a new European Key Accounts (EKA) Department
8-Series
emissions than the 2007 Internal combustion combining the previous Toyota and BT major account teams. The
counterbalanced lift truck
U.S. Environmental EKA Department provides our largest customers with a consistent,
Protection Agency (EPA) federal emissions standards, is just one comprehensive offering of TOYOTA and BT products and services.
environmentally focused initiative TMHNA is employing to distinguish TMHE has also studied each European market to determine the
itself from its competitors. Another key initiative is fuel-cell lift trucks. best approach to strengthen customer relationships and improve
A prototype of the industry’s first fuel-cell lift truck was proudly customer contact. TMHE has launched unified Marketing & Sales
displayed at ProMat 2007. The TOYOTA prototype uses hydrogen as Companies in a number of European markets, including the Nordic
its main power source and produces electricity without combustion, countries, Germany and the United Kingdom, each of which will
generating zero CO2 emissions. Additionally, Raymond received a provide its market with a complete range of TOYOTA and BT
contract from the New York State Energy Research and Development products and services.
Authority (NYSERDA) for a hydrogen fuel-cell feasibility study at a At the same time, TMHE has taken steps to increase the number
manufacturing facility of Toyota Material Handling Manufacturing of fully owned distribution companies by acquiring independent
North America (TMHMNA) in Greene, New York, which we believe distributors, such as Toyota distributors in Austria, Finland, Greece,
will expedite the commercialization of our environment-friendly the Netherlands and Spain.
technology. TMHMNA also continued implementation of TPS at In terms of its available products, TMHE had very positive results
its manufacturing facilities in Greene, New York; Muscatine, Iowa; for its new range of three-wheel, 24-volt electric counterbalanced
Brantford, Ontario; and Columbus, Indiana. We believe this will enable trucks marketed under the TOYOTA, BT and CESAB brands. This
improvement of our already strong reputation for product quality and range was developed by engineers in Europe in close collaboration
reliability. Furthermore, TMHMNA continued efforts to competitively with their colleagues in Japan and is an excellent example of our
supply high-quality products; as part of this effort, the procurement global coordination and synergy building. The success of these
department was centralized at its facility in Greene, New York, which trucks, which are produced at TMHE’s manufacturing facility in
we believe will enable more cost-effective production of lift trucks. Bologna, Italy, demonstrates the kind of benefits that can be realized
Many other significant events took place during the fiscal year by further integration.
under review. Raymond received an award for its human resources Furthermore, a new range of compact TOYOTA electric tow
development policies from the New York Management Council in tractors was introduced, and a number of BT-brand products were
recognition of its best practices in health and safety that are part of its launched in 2006, including the market’s fastest horizontal transport
unsurpassed safety program. Additionally, Raymond will celebrate the truck that delivers driving speeds of nearly 20 km/h with three loaded
production of its 300,000th Raymond-brand lift truck during 2007. full-sized pallets. A new BT-brand truck designed for customers
Meanwhile, the TMHMNA manufacturing plant in Indiana received needing to stack and load/unload two pallets on top of each other
the Indiana Governor’s Award for Environmental Excellence and was also released to market along with a new hand pallet truck that
celebrated the production of its 250,000th TOYOTA-brand lift truck. uses the newly developed pump production line in Mjölby, Sweden.
The new pumps further enhance the durability of the truck and
European Market reduce the environmental impact.
The overall European market for industrial trucks continued to Other highlights included the power truck division in Mjölby
show significant growth, with especially strong growth recorded reaching a milestone in 2006 with the shipment of its 500,000th unit,
in the markets of Central and Eastern Europe. Accordingly, Toyota an electric pallet truck. The factory in Ancenis, France, celebrated

Focus on Business
10 years of production and 100,000 units of cumulative production, network to meet growing demand, while in the Middle East, efforts
and the factory in Bologna, Italy, earned the International Best are being carried out to rationalize and strengthen operations. The
Factory Award for excellence in such areas as quality, lead-times and establishment of a sales and service base in India is also a key focus
innovation. in view of a growing need for materials handling equipment and
quality solutions for customers’ planned distribution centers. With
International Market the proliferation of local production plants for a variety of industries
These markets include Africa, Asia, the Middle East, Oceania and including car manufacturers and suppliers for these plants, TMHI will
South America—areas where economic expansion is creating work to ensure quality products will be available to meet these needs.
growing demand for materials handling equipment. Prominent among In addition to activities in the marketplace, we have also
these areas are the BRICs countries, where Toyota Material Handling focused on internal structures in order to ensure the organizational
International (TMHI) is concentrating major efforts on meeting infrastructure is in place to support our business across the
expanding requirements for its products and services. The ability to substantial number of markets under our responsibility. To this end,
offer a full range of counterbalanced lift trucks and warehouse trucks we have rationalized key management areas to integrate the skills
is of vital importance in this process. within our international operations. This enables us to drive our
TMHI’s activities have included the strengthening of its business in an ever more coherent fashion, as well as increase our
production, sales and service capabilities at its bases in China. efficiencies and competencies.
Specific measures there include a structured training process of These and other measures have contributed to continued
its sales and service network to ensure a high level of product favorable results in International markets.
knowledge so that customers can gain support in all areas of September 2006 marked the start of imports from Japan of the
materials handling, including major investment projects where TMHI new generation of engine-powered lift trucks (sold as the 8-Series in
can offer sophisticated software systems designed to maximize International). The enhanced safety and environmental performance
utilization of space. For distribution centers and other complex of the 8-Series have earned this lift truck especially high acclaim,
applications, its own regional experts in Shanghai support the which is underscored by a steady increase in unit sales.
national dealer network. In Brazil, TMHI is enhancing its sales
Looking Ahead
Japanese Market and commenced training for distributors worldwide. A specialized

In 2007, we anticipate a stable business environment supported by training facility is under construction in Handa, Aichi Prefecture, and we
sustained growth in the Japanese industrial truck market. will continue to actively engage in human resources development to
Against this backdrop, TMHJ aims to expand industrial truck ensure the future growth of Toyota Industries.
sales in the domestic market by highlighting the product value of the
new generation of engine-powered lift trucks launched in September North American Market
2006. We also realize it is increasingly important to provide the kinds TMHNA anticipates that the general industrial truck market in North
of services that comprehensively support customers’ logistics not only America will slow down in 2007, but that the market for electric lift
through sales of materials handling products but also by providing trucks will remain strong. The continued strength of the latter market
solutions. Keeping this in mind, we intend to deploy solution-based coincides with TMHNA’s continued environmental focus. With several
sales with TPS at the core and respond to customer needs from both environmental accolades already under its belt, TMHNA will again make
the hardware and software aspects. this important business and social issue a top priority. Several new
We established the TMHG Training Center as the organization electric lift trucks will be launched under the TOYOTA brand in 2007,
overseeing the nurturing of including a tow tractor and a Class 3 AC-powered truck. Recognizing
professionals with high levels that the strongest segment of the electric truck market consists of
of expertise and abilities in the companies where warehousing, distribution or order fulfillment are
areas of sales and services at critical success factors (e.g., wholesale and retail distribution), ongoing
both domestic and overseas investment in the development of more reliable, high-performance,
distributors. We have already Raymond-brand electric lift trucks will continue to play a key role in
devised new training curricula TMHG Training Center enabling distributors to both trim costs and increase throughput.

Through both of TMHNA’s market-leading TOYOTA and Raymond of safety, productivity, durability, comfort and the environment. The
brands, we remain committed to helping our customers improve their new lift trucks will offer a formula (known as the Tonero+ formula) that
business. Under the TOYOTA brand, for example, we are set to launch allows customers to specify additional features in the areas of safety,
the new “Toyota Fleet Solution” fleet management program, a data- productivity, comfort and durability in order to fulfill their individual
driven, comprehensive approach to fleet management designed to business needs.
deliver better bottom-line business performance to customers. Under In addition, several truck models will be equipped with a built-in
the Raymond brand, we plan to continue to focus on anticipating wireless communication system. This innovative system will provide
customers’ needs and developing warehousing solutions to improve customers with remote access to performance data from the trucks
Raymond’s position as the leading provider of materials handling and will allow monitoring of the battery status, with collision sensors
equipment to this large market segment. providing additional data.
The year 2007 also marks the 40-year anniversary of establishing
TOYOTA-brand lift truck operations in the United States. From the
first lift truck, a cushion tire 6,000-pound capacity internal combustion International Market
model introduced nearly four decades ago, to the new generation of TMHI sees continuing and significant growth potential in International
engine-powered lift trucks (sold as the 8-Series in North America), markets—a trend that has been further developing over the 12
Toyota continues to push the bounds of product and technology months ended March 31, 2007 and shows no sign of abating. This
innovation with its full line of high-quality lift trucks. trend underlines the development of many markets, and confirms the
importance of efficient logistics for industrial and commercial partners.
European Market Where customers seek to build and invest in a business, the need for
There are some concerns that the rate of growth in the European an informed supplier to deliver good solutions, products and support
market will slow down due to the persistent strength of the euro and services is paramount. Strong growth in fiscal 2007 in the fields of
the effects of a decelerating U.S. economy. Nevertheless, we foresee third-party logistics and warehousing/distribution centers emphasizes
robust demand, particularly in Central and Eastern European countries. this point, and is a key component of business planning.
During fiscal 2008, TMHE intends to continue to integrate a Our focus continues to be directed at improving internal structures
number of central support functions as well as local operations in to ensure the right levels of support to our market operations. We
countries where it has determined this would allow operations to look to continue our commitment in key markets to provide high-
improve service to its customers. quality sales and service operations and to ensure that local skill levels
We believe that our commitment to investment in product are further developed through carefully planned training courses.
development will lead to several new and renewed items in our We strive to underpin our position as a market leader by developing
warehouse and counterbalanced product ranges, including the launch products that accurately ascertain the needs of different markets and
of the new generation of engine-powered lift trucks (sold as the by establishing optimal sales and service structures in all markets, with
Toyota Tonero in Europe). These 1.5- to 3.5-ton internal combustion a strong focus on market coverage and on quality of products and
counterbalanced lift trucks demonstrate the best of Toyota’s global support to ensure customer satisfaction.
research and development capabilities and give European customers a TMHI remains dedicated to providing the optimum solutions for its
European-produced truck that addresses their specific needs in terms customers.
Worldwide Manufacturing Bases of TMHG

Focus on Business
Topics
Toyota Industries Displays Hybrid Lift Trucks at EVS 22 awareness and solutions,
In October 2006, Toyota Industries displayed its hybrid lift truck communication,
prototypes, developed jointly with Toyota Motor Corporation, at and remuneration
the 22nd International Battery, Hybrid and Fuel Cell Electric Vehicle and awareness. The
Symposium & Exposition (EVS 22). This is the world’s largest management of Raymond
international symposium for electric vehicles, which covers such is making its best efforts
fields as electric vehicles, hybrid cars and fuel-cell cars. The event to ensure this program
attracted participants from a vast range of sectors, spanning not functions efficiently.
only manufacturers and ordinary users from around the world but
also representatives of national BT Attains Cumulative Production of 500,000 Warehouse
and municipal government Trucks
bodies, research institutes and the The BT power truck division in Mjölby, Sweden, achieved cumulative
media. Amid a rising tide of global production of 500,000 units in November 2006. While it took 28
interest in electric vehicles, years to reach cumulative production of its first 100,000 units since
this exhibition served as an commencing production 60 years ago, BT subsequently accelerated
excellent forum for extolling production to produce its most
the benefits of our recent 100,000 units over a period
future technologies. of just three years. Although attaining
aggregate production of 500,000
Toyota Factory Celebrates Production Milestone units represents a significant
In September 2006, the Toyota Industrial Equipment plant in Ancenis, milestone, BT will continue working
France, celebrated 10 years of operation and cumulative production to establish a structure that will allow
of 100,000 units. The Ancenis facility produces electric and engine- the annual production of 60,000
powered counterbalanced lift trucks for the European market, and units in line with plans to further
since beginning production in 1996 has established itself as a world- expand sales.
class manufacturing plant.
BT New Compact Three-Wheel Counterbalanced Lift
Raymond Celebrates 85th Anniversary Truck Earns Safety Award
Increases in population and evolving lifestyles have spurred increased In October 2006, BT’s compact three-wheel counterbalanced lift truck
demand for warehouses and delivery capabilities. In responding to earned recognition as a lift truck with the highest standard of safety
this trend, Raymond has continually developed high-performance lift at the Préventica exhibition in France. This biennial exhibition focuses
trucks, thus playing a key role in enabling shippers to trim costs and on safety and ergonomics, and the most recent exhibition attracted
raise processing capabilities. 6,000 visitors. The BT-brand series of C3E-R electric lift trucks was
Upon the occasion of its 85th awarded the Innovation Prize, winning high acclaim for such features
anniversary in 2006, Raymond as the C3E-R’s automatic speed reduction on cornering and drive-
remains committed to wheel direction indicator. The C3E-R was developed by engineers in
responding to customer needs Europe in close collaboration with their colleagues in Japan and is an
as a leader in both offering excellent example of global coordination and synergy building in the
materials handling equipment Toyota Material Handling Group.
and providing solutions.
Cesab Wins International Best Factory Award
Raymond Receives Award for Human Resources Cesab’s factory in Bologna, Italy, earned the International Best Factory
Development Policies Award, which is presented to excellent production plants in Italy.
In October 2006, Raymond received an award for its human Sponsored by Bocconi University’s SDA Bocconi, one of the world’s
resources development policies from the New York Management authoritative institutions in economics and business administration,
Council in recognition of its best practices in health and safety that as well as Sole 24 Ore, a leading economic newspaper, this award is
are part of its unsurpassed safety program. Raymond provides presented based on a comprehensive evaluation that encompasses
its employees with a safety program comprised of five different quality, lead-times, flexibility and innovation. Cesab has achieved high
principal categories: policies and procedures, practice, problem name recognition internationally.

Products for the Japanese Market
Industrial Vehicles
GENEO (8FG25) GENEO-B (7FB15) GENEO-E (7FBE15) GENEO-R (7FBR15) Tow Tractor Skid Steer Loader
Internal combustion Electric counterbalanced Three-wheel electric Electric reach truck (2TD25) (4SDKL8)
counterbalanced lift truck lift truck counterbalanced lift truck
Materials Handling Systems
Partner Rack Rack Sorter B Rack Sorter P Tugcart 2AFBR15 APLB8

Rail-less mobile rack Automated storage and Automated storage and Automatic guided Automatic guided Automatic guided
retrieval system retrieval system vehicle system lift truck pallet truck
(Plastic container type) (Pallet type)
Please visit www.aichi-corp.jp for

more information.
Truck Mount Aerial Work Platforms Self-Propelled Aerial Work Platforms
SH15B SE08C TZ-10A type “RR” SC40A SR-18AJ RX07B

Note: Although Aichi Corporation is not integrated into the Toyota Material Handling Group, it comprises an important part of the Materials Handling Equipment Business.

Focus on Business
Products for the North American Market
Please visit www.toyotaforklift.com for more information.
7FGU70 8FGCU25 7FGCU55-BCS

Internal combustion pneumatic tire Internal combustion cushion tire Internal combustion cushion tire
counterbalanced lift truck counterbalanced lift truck counterbalanced lift truck—boxcar
special model
8FGU25 7FBEU20 7FBCU25 7BPUE15

Internal combustion pneumatic tire Three-wheel electric counterbalanced Electric cushion tire counterbalanced Electric order picker
counterbalanced lift truck lift truck lift truck
Please visit www.raymondcorp.com for more information.
Raymond Model 7400 Raymond Model 4200 Stand-

Reach-Fork Truck Up Counterbalanced Truck
Reach truck Electric counterbalanced truck
Raymond Model 8400 Pallet Truck Raymond Model 5600 Raymond

Electric pallet truck Orderpicker Swing-Reach Truck
Order picking truck Very narrow aisle truck

Products for the European Market
Please visit www.toyota-forklifts.eu for more information.
7FG/D35 7FBMF25
Internal combustion counterbalanced Electric counterbalanced lift truck (80V)
Internal combustion counterbalanced
lift truck (3.5-5 ton)
lift truck (1.5-3.5 ton)
*Launched in calendar year 2007
7FBEF15 4CBT2
Three-wheel electric counterbalanced Electric tow tractor
lift truck (48V) Three-wheel electric counterbalanced
lift truck (24V)
Please visit www.toyota-forklifts.eu for more information.
Vector Reflex Stratos Ixion

Very narrow aisle truck with Reach truck Powered stacker truck with Support arm stacker truck
shuttle forks stand-in cab
Minimover Opus Orion Pro Lifter

Powered stacker truck Low-level order picking truck Powered pallet truck Hand pallet truck

Focus on Business
Car Air-Conditioning
Compressor
Car Air-Conditioning
Compressors Top
20 Million Units to
Lead the Global
Market
With annual sales exceeding 20 million units,

Toyota Industries commands the world’s No. 1
share for car air-conditioning compressors—
testimony to the high reliability of these
products. Underlying this leading position is
our ability to develop new products that we
believe anticipate the needs of the times as well
as outstanding technological capabilities that
support product development. In maintaining
the top global position, we remain committed
to addressing the need for car air-conditioning
compressors that are more compact, lighter in
weight and offer higher performance, thereby
enhancing the comfort of vehicles.

Car Air-Conditioning Compressor
Toyota Industries Achieves Record Sales of

20.45 Million Units
The Car Air-Conditioning Compressor Business is one core business
of the Automobile Segment as well as an important strategic
business of Toyota Industries. Tapping excellent development
and technological capabilities, Toyota Industries develops and
manufactures high-quality, efficient products that it supplies not
TD Automotive Compressor Kunshan Co., Ltd.
only to Toyota Motor Corporation (TMC), but also to other premier
automakers worldwide. In so doing, we believe we are making
valuable contributions to technological advances, improvements in Product Development Capabilities that
comfort and fuel efficiency of vehicles. Respond to Global Needs Focusing on Basic
Thanks to the development of products that anticipate user Performance
needs and to our proactive sales expansion activities, Toyota Toyota Industries’ car air-conditioning compressors continually
Industries’ total sales of car air-conditioning compressors in fiscal anticipate the latest user needs, earning high acclaim for our
2007 reached an all-time high of 20.45 million units, an increase of products from TMC and other leading automakers worldwide.
1.34 million units from the previous fiscal year. In gearing up to meet We have compiled a solid record of ongoing achievements
increased demand, we made further strides in strengthening our in developing technologically advanced car air-conditioning
optimal global production structure during the fiscal year. Among compressors, with strong emphasis on basic performance
the more noteworthy achievements, in April 2006 Toyota Industries requirements, including reliability at high operating speeds, quiet
began producing variable-displacement compressors at our fourth operation, compactness, light weight and fuel efficiency. Moreover,
overseas compressor manufacturing subsidiary, TD Automotive because our customers are leading global automakers, we engage
Compressor Kunshan Co., Ltd. (TACK) in Kunshan, China. In North in well-honed product development to closely tailor our compressors
America, we strengthened our production capacity for variable- to diverse customer needs while vigorously promoting product
displacement compressors at TD Automotive Compressor Georgia, development with a view to the future.
LLC (TACG), while in Japan we completed renovation of our Obu As excellent examples of major world-first technological
Plant in May 2006. developments, in 1981 Toyota Industries developed a compact,
All of Toyota Industries’ car air-conditioning compressors are lightweight 10-cylinder swash-plate fixed-displacement compressor
supplied to DENSO Corporation (DENSO), which in turn sells them with an excellent reputation for quietness and superb reliability
to leading automakers worldwide. at high operating speeds. Adding to our achievements, in 1995
Compressor Sales
(Million units)
22
World’s first electrically
driven compressor
20 World’s first mass-produced
equipped with an inverter
electrically driven compressor
18 for hybrid vehicles
16
14 World’s first variable-displacement

clutchless compressor
12
World’s first one-way swash-plate

10 variable-displacement compressor
World’s first 10-cylinder
8 swash-plate fixed-
displacement compressor
6
4
Others
2
Variable-displacement compressor
Fixed-displacement compressor
0
FY 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07

Focus on Business
we addressed growing concerns about the environment with Operating an Optimal Global Production
the development of an internally controlled one-way swash-plate Structure
variable-displacement compressor that contributes to lower CO2 Underscoring our firm commitment to meeting the needs of
emissions and energy savings by reducing the load on the engine to customers worldwide, Toyota Industries has been striving to realize
increase fuel efficiency. In 1997, Toyota Industries once again broke a flexible global production structure for its Car Air-Conditioning
new ground by successfully developing an externally controlled Compressor Business.
continuous variable-displacement clutchless compressor that Toyota Industries currently operates a far-reaching network of
enhances acceleration and reduces energy consumption by changing production bases spanning Japan, North America, Europe and Asia.
displacement in response to the heat load and engine revolutions. In Japan, our largest production base, we have built an integrated
Subsequently, in 2003 we collaborated with DENSO to develop an production structure encompassing molds, die casts, processing and
electrically driven compressor for hybrid vehicles. This compressor assembly centered on the Kariya, Obu and Higashiura plants. These
allows the air conditioner to be operated even when a hybrid vehicle’s three facilities play a key role as mother plants for our domestic and
engine is stopped, thus realizing an optimal balance between fuel overseas subsidiaries. As one example, these plants’ highly advanced
efficiency and comfort. In 2005, Toyota Industries developed a new aluminum die-cast technologies and technologies for automating
compact electrically driven compressor equipped with an inverter. production lines utilizing robots are being deployed at production
We believe that each of these car air-conditioning compressors bases in Japan and overseas, enabling major achievements.
offers irrefutable proof of the technological and competitive superiority In North America, Michigan Automotive Compressor, Inc. (MACI),
that has propelled Toyota Industries to the world’s top position in based in the U.S. state of Michigan, has been producing swash-
terms of unit sales and market share. plate fixed-displacement compressors since 1990. In December
Looking to the future, we intend to continue our active approach 2005, TACG, which is located in the U.S. state of Georgia,
to developing cutting-edge technologies and new products that began production of variable-displacement compressors as our
contribute to the development of new cars by automakers worldwide, second North American compressor production base. Although
not only for conventional engine-powered vehicles but also for hybrid fixed-displacement compressors are currently the mainstream
vehicles, for which global demand is expected to rise amid soaring compressor used in North America, we anticipate that greater global
energy prices and mounting concern for environmental protection. environmental awareness will drive increased demand for variable-
Worldwide Manufacturing Bases of Car Air-Conditioning Compressor
TDDK
MACI
DNTS Toyota Industries
Corporation TACG
ACTIS
DWHI
YSD
TACK
SUBROS
DNIA
Consolidated subsidiaries DNBR
Licensed manufacturers
Toyota Industries produces compressors through a global tripolar structure encompassing Europe, the United States and Asia (including Japan), established through direct
investments. We also license production in Asia (excluding Japan) and South America. By carrying out production near our markets, we believe we are better able to supply
products precisely tailored to local market needs while reducing shipment costs and exchange rate risks.

Car Air-Conditioning Compressor
displacement compressors, which enable excellent energy efficiency.

In Europe, where environmental awareness is high, TD Deutsche
Topics
Klimakompressor GmbH (TDDK) has been producing swash-plate
variable-displacement compressors since 2000. Obu Plant Renovation Completed
In China, where the automobile market is recording remarkable In fiscal 2007, we completed the phased renovation of
growth, we began producing variable-displacement compressors at the Obu Plant in Japan that began in 2000. The Obu
TACK in April 2006. Plant carries out integrated production encompassing
As these examples illustrate, Toyota Industries is making the manufacture of molds for aluminum die-cast
significant progress in further strengthening its global production products and aluminum die casts as well as component
structure. processing. The Obu Plant plays a key role both as the
Reflecting our determination to contribute to reducing the Materials Development Center and as the mother plant
environmental load and reusing resources, we also remanufacture for production bases in Japan and overseas.
compressors for the aftermarket (auto replacement parts and
supplies market) at Texas-based ACTIS Manufacturing, Ltd., LLC in
the United States.
Regarding future trends, we foresee increased demand for
compressors in line with a rise in automobile sales. Consequently,
Toyota Industries will push forward with initiatives to upgrade its
global production structure to respond to customer needs for globally
optimal production and procurement.
* Remanufacturing involves repairing and recycling products to give them the same functions as new
products by overhauling rebuilt, used and malfunctioning products and exchanging components.
Fixed-Displacement Type
10S17 compressor SCS06 compressor SV07 compressor

(Swash-plate type) (Scroll type) (Vane type)
Continuous Variable-Displacement Type For Hybrid Vehicles
7SBU16 compressor 7SEU17 compressor ES27 electric compressor ES34 electric compressor
(Swash-plate type) (Externally controlled, (Hermetic scroll type) (Hermetic scroll type)
clutchless type)

Focus on Business
Automobile
A Key Role in
Toyota Motor
Corporation’s
Global Production
Toyota Industries supports Toyota Motor
Corporation’s (TMC) global operations by
assembling compact and midsize automobiles
as one of the Toyota Group’s vehicle assembly
arms. We also contribute to TMC’s operations
on a multiplicity of other fronts. These include
proactive participation in TMC’s new car
development, development and production
of diesel engines as well as power electronics
and other car electronics products, and
manufacture of stamping dies. In January 2007,
we established the Automotive Headquarters to
further strengthen this segment as a pillar of our
operations on par with the Materials Handling
Equipment Segment.
Automotive Headquarters
Electronics
Vehicle Division Engine Division
Division
Machinery &
Tools Sub-Div.

Automobile
upon a full model change in 2005, the third-generation RAV4 offers

Vehicle an even roomier interior, superb driving performance and world-
class environmental and safety performance. Of particular note, we
Manufacturing TMC’s participated in TMC’s development project for the RAV4 for Europe
Global Models from the initial phase. Moreover, the RAV4 is also equipped with
Toyota Industries’ AD diesel engine produced at the Hekinan Plant.
Toyota Industries has compiled a stellar record of
achievement during the 40 years since commencing A Vital Role in TMC’s Global Operations
vehicle production under consignment from TMC Toyota Industries’ vehicle assembly operations have also been
in 1967. At present, Toyota Industries manufactures lauded for maintaining the Toyota Group’s top-class quality, cost and
delivery (QCD) and capabilities in making quick production launches.
two Toyota models, the Vitz (Yaris outside Japan) and
In fiscal 2007, we received the Superior Quality Performance Award
the RAV4 for overseas markets. Additionally, as an
from TMC in recognition of our efficient, high-quality production
automobile body manufacturer, we participate in the
carried out under the Toyota Production System as well as for our
development of new Toyota vehicles, handling both
daily improvement activities.
the development and design of automobile bodies. Annual global production of the Vitz (Yaris) tops more than
500,000 vehicles, more than one-third of which is produced by
Record-High Production of 350,000 Vehicles our Nagakusa Plant. Meanwhile, production of the RAV4 is carried
Achieved out at the Nagakusa Plant and TMC’s Tahara Plant. The Nagakusa
In fiscal 2007, Toyota Industries achieved record-high production of Plant is also supporting preparations for production at Toyota Motor
350,000 vehicles, which was supported by robust sales of the RAV4 Manufacturing Canada Inc., which is set to begin production of the
in overseas markets. RAV4 in 2008.
Since commencing vehicle assembly operations under Determined to continue playing an important role in TMC’s
consignment from TMC in 1967, Toyota Industries has produced global business, Toyota Industries intends to maintain its top-level
such vehicles as the Starlet, Sprinter Carib and Corolla (van). In 1999, QCD, while expanding its business domains that contribute to
we started manufacturing the Vitz as the successor model of the TMC, including further increasing its role in the development of new
Starlet. The first-generation Vitz (Yaris) sparked an expansion in the vehicles and supporting the quick start-up of new vehicle production
compact car market in Japan and subsequently attained a position at overseas production plants.
as a global-standard compact car. Undergoing a full model change in
2005, the second-generation
Vitz (Yaris) integrates the Vehicle Production
(Thousand units) Topics
most-advanced safety and 400
environmental technologies, Toyota Industries Receives Superior
earning extensive acclaim Quality Performance Award
300
worldwide as a compact car of
In February 2007, the Vehicle Division and Machinery &
the highest quality. Sales of the
200 Tools Sub-Division (stamping dies) received the Superior
Vitz (Yaris) were launched in the
Quality Performance Award from TMC. This marks the
United States in 2006.
100 seventh time the Vehicle Division has earned this award in
Toyota Industries
the past 10 years and the eighth time for the Machinery &
commenced production of the
0 Tools Sub-Division over the same period.
RAV4 in 2001. Relaunched FY 03 04 05 06 07
Vehicles
Vitz RAV4
(Yaris outside Japan)

Focus on Business
2007 we constructed a new testing center to bolster our diesel

Engine engine development capabilities. Looking ahead, we will seek to
make further contributions through actively participating in the joint
Sharp Increase in development and production of diesel engines with TMC.

Toyota Industries also engages in broad-ranging production of
Diesel Engine Sales Lift engines for industrial equipment, including engines for lift trucks that
offer high power output and excellent environmental performance,
Production to Record as well as engines for other materials handling equipment and gas
engine-driven heat pumps. Toyota Industries’ engines represent the
High source of competitiveness of its lift trucks, which have secured the
No. 1 global market share.
Toyota Industries’ Engine Business manufactures At our production bases worldwide, we also manufacture a
diesel and gasoline engines. In addition to broad assortment of engine parts that include engine blocks, heads,
manufacturing engines for vehicles under camshafts and crankshafts.
consignment from TMC, Toyota Industries

manufactures engines for lift trucks and other
materials handling equipment. As another important
activity, we engage in the joint development of new
diesel engines with TMC.
Favorable Results for New Diesel Engines

with Outstanding Environmental Performance New Testing center
In fiscal 2007, Toyota Industries achieved record-high sales of

490,000 engines (unit sales to outside customers) on the back of
increased sales of AD diesel engines fitted in TMC’s RAV4 for the Developing Global Business through
European market and the Lexus IS as well as KD diesel engines for Domestic and Overseas Collaboration
TMC’s Innovative International Multi-Purpose Vehicle (IMV). Our engine production operations have garnered strong praise not
Our new diesel engines, noted for their superb environmental just for responding quickly to changes due to flexible production lines
performance, are particularly attracting attention. Toyota Industries utilizing automatic guided vehicles but also for the ability to start up
manufactures AD diesel engines jointly developed with TMC, which production in short time periods.
comply with Europe’s strict EURO 4 environmental regulations on Following the 1994 establishment of Toyota Industry (Kunshan)
exhaust emissions. The advantages of diesel engines in comparison Co., Ltd. (TIK), an engine foundry parts production company in China,
with gasoline engines lie in high fuel efficiency and low CO2 we have steadily strengthened our engine production capabilities
emissions—a key reason overseas. At present, we operate production bases for engines and
diesel engines are in high Engine Production engine parts at TIK and Toyota Industry Automotive Parts (Kunshan)
demand in Europe. In the (Thousand units) Co., Ltd. (TIAP) in China, Kirloskar Toyoda Textile Machinery Private
500
North American market as Limited (KTTM) in India and Toyota Motor Industries Poland Sp.zo.o.
well, the number of pickup 400 (TMIP) in Poland, allowing us to further contribute to TMC’s global
trucks fitted with diesel development.
engines is expected to rise 300 In Japan, the Hekinan Plant (engine assembly and parts
amid rapidly increasing energy processing), together with the Kyowa Plant (engine parts processing)
200
prices. and Higashichita Plant (foundry parts, aluminum die casts, engine
Reflecting our firm 100 assembly and parts processing) function as mother plants for
commitment to becoming overseas production bases in providing support for plant start-ups
0
a top manufacturer of FY 03 04 05 06 07 and operations. Through this global cooperation, we believe we are
diesel engines within the Gasoline engine able to assure QCD at the highest levels and raise productivity at
Diesel engine
Toyota Group, in fiscal each of our overseas plants.

Automobile
Worldwide Manufacturing Bases of Engine
TMIP
Manufacture of diesel engines for
TMC’s plants in the U.K. and Turkey TIK Hekinan Plant Kyowa Plant
Manufacture of foundry parts for Manufacture of diesel and Manufacture of engine
Japan and manufacturing bases in gasoline engines parts
Poland and India
KTTM TIAP Higashichita Plant

Manufacture of transmission parts for Manufacture of foundry parts for Manufacture of foundry parts
TKAP engines Manufacture and supply of diesel engines for IMV Project
Engines
2AD diesel engine 2KD diesel engine 2AZ-FE gasoline engine 1FZ-FE gasoline engine
(Displacement: 2.2 liters, used (Displacement: 2.5 liters, used (Displacement: 2.4 liters, used in (Displacement: 4.5 liters, used in
in the Avensis, RAV4, Corolla in the Hilux Vigo) the Estima) the Land Cruiser)
Verso and Lexus IS)
4Y gasoline engine Cylinder block for Cylinder head for

(Displacement: 2.2 liters, used in AD diesel engine AD diesel engine
lift trucks)

Focus on Business
voltage direct current (DC) of the main battery to a lower voltage to

Car Electronics recharge the auxiliary battery and supply power for lights, wipers,
Stamping Dies the horn and other in-car devices. We also develop and manufacture
compact, low-cost DC-DC converters for electric power steering
systems for hybrid vehicles.
Manufacturing Key Parts A wide selection of Toyota Industries’ products also includes
DC-AC inverters for cars with hybrid and conventional engines. The
for Hybrid Vehicles and inverter is capable of converting currents into the same voltage as
Stamping Dies household electricity, thereby allowing the use of various household
electronic appliances.
In fiscal 2007, Toyota Industries began shipments of numerous
Utilizing power electronics circuit technologies products through a serialization of existing products such as DC-
and electric drive system development capabilities DC converters for the Camry Hybrid for North America and DC-DC
cultivated through its experience with electric lift converters for electric power steering (EPS) for the Lexus LS.
trucks, Toyota Industries develops and manufactures Amid growing worldwide interest in environmental protection,
electronic components and devices for automobiles, we expect that demand for hybrid vehicles will steadily increase. In
preparing to meet this demand, we are augmenting an advanced
including hybrid vehicles. Toyota Industries also
development structure. This will enable us to develop not only
boasts an abundance of experience in manufacturing
products for hybrid vehicles but also controllers for electric lift trucks,
high-quality automotive stamping dies.
power supply devices for hybrid lift trucks and others that will raise
the competitiveness of our materials handling equipment and textile
machinery. To expand our selection of automotive products, we are
planning to put more energy into the development of key components
Newly Developed DC-DC Converters for the in addition to the current lineup of auxiliary components such as
Toyota Camry Hybrid converters. We are also pressing forward with the preparations for
Fitted in TMC’s Prius, Toyota Industries’ DC-DC converters are key mass production at a new plant in order to handle expansion of the
devices for hybrid vehicles. These converters down-convert the high- hybrid vehicle market.

Automobile
Major Car Electronics Products
DC-DC converter for EPS DC-DC converter for EPS New products
Fitted in the Harrier Hybrid (RX 400h) Lexus LS
DC-DC converters
for EPS
DC-AC inverter DC-DC converter
Fitted in the Tacoma Camry Hybrid
DC-DC converter DC-DC converters

Fitted in the Prius
DC-AC inverters
FY 2003 2004 2005 2006 2007 2008 2011
Car Electronics
DC-DC converter for electric DC-DC converter for DC-AC inverter for
DC-DC converter for the Prius power steering for the Harrier Camry Hybrid the Tacoma (400W)
Hybrid (RX 400h)
Manufacture and Quick Delivery of High- in recognition of the high quality of our stamping dies as well as our
Quality Automotive Stamping Dies ongoing daily improvement activities.
Toyota Industries undertakes the design and manufacture of We are also making important progress in bolstering our
automotive stamping dies mainly for TMC vehicles (Toyota and overseas operations. Toyota Industries established Lio Fung Tool &
Lexus brands) as well as stamping dies for our own lift trucks and Die (Kunshan) Co., Ltd. (LFTD, in which Toyota Industries has a 35%
other materials handling equipment. Combining advanced skills with stake) in Kunshan, China, as a joint venture with Taiwan-based Lioho
leading-edge simulation technologies, Toyota Industries has earned Machine Works, Ltd. LFTD produces stamping dies for TMC vehicles
high marks from customers for quick delivery times and top quality. manufactured in China as well as for Toyota Industries lift trucks.
In fiscal 2007, we won TMC’s Superior Quality Performance Award
Trim die for engine hood Draw die for rear door

Focus on Business
Logistics
Supporting the
Optimization of
Overall Logistics
Toyota Industries is engaged in proposing

optimal overall logistics solutions from
customers’ perspectives. We handle customers’
logistics by combining our extensive business
experience in lift trucks, automated storage and
retrieval systems and other materials handling
equipment with our production and logistics
know-how, as well as the Toyota Production
System cultivated in pursuit of the most efficient
methods of manufacturing. In so doing, we
propose so-called market-in logistics that supply
only “what is needed, when it is needed, and in
the amount needed!”

Logistics
Making Optimal Logistics Proposals as a by discontinuing its policy of handling logistics internally. With the
Group of Specialists acquisition of this stake in Mail & e Business Logistics, Toyota
In fiscal 2007, net sales of the Logistics Segment increased sharply Industries and Nissen will work together in promoting mail-order
by 37% to ¥89.4 billion. logistics reforms by optimizing the flow of the entire logistics process
Toyota Industries’ Logistics Business is centered on the three from procurement to delivery to customers.
business pillars of planning, design and operation of distribution
centers, high value-added services and distribution of automotive Business Models Offering High Value-Added
parts. Planning, design and operation of distribution centers Services
are carried out mainly through the Advanced Logistics Division. Toyota Industries regards logistics as a process that continues until a
Specifically, this business aims to reduce companies’ logistics costs product passes the checkout counter at a retail store and is delivered
through Advanced Logistics Solutions Co., Ltd. (ALSO), a wholly to the customer. We are building proprietary business models
owned subsidiary, as well as through joint ventures with customers that aim to optimize this overall flow, which involves not only the
and logistics operators. Meanwhile, high value-added services are management of the flow of “goods” but also the flow of “cash” and
provided through two subsidiaries, Asahi Security Co., Ltd. (Asahi the flow of “information.”
Security) and Wanbishi Archives Co., Ltd. (Wanbishi Archives), As part of these efforts, Asahi Security, which became a
whereas the Taikoh Transportation Group handles distribution of subsidiary in March 2005, offers cash management outsourcing
automotive parts. services including cash collection and cash proceeds management
Since entering the logistics solutions field in 2002, we have services for the retail, services and transportation sectors. Wanbishi
achieved continuous growth and development. We intend to aim Archives, in which we acquired a stake in January 2006, provides
for higher added value and efficiency. To this end, we are pursuing highly advanced risk-related services that include storing and
synergies internally and externally by strengthening collaboration managing important data for companies and government agencies
with the Materials Handling Equipment Business, which handles lift and providing data backup services in the event of disasters. In May
trucks and automated storage and retrieval systems, as well as by 2007, we raised our stake in Wanbishi Archives to 100%, making
sharing logistics businesses with our customers. In tandem, we are it a wholly owned subsidiary, as we aim to expand this business by
also focusing our efforts on reinforcing the earnings structure of the benefiting from such trends as the implementation of the Japanese
Logistics Business through continuous improvements. version of the U.S. Sarbanes-Oxley Act (J-SOX) and the Personal
In fiscal 2007, we acquired a 50.5% stake from Nissen Co., Ltd. Information Protection Act.
(Nissen), a leading mail-order company, in Nissen Logistics Service Using these wide-reaching service-related technologies as
Co., Ltd., which became a subsidiary and was renamed Mail & a foundation, we are firmly poised to expand the scope of our
e Business Logistics Service Co., Ltd. (Mail & e Business Logistics). high value-added services that address the outsourcing needs of
This move reflects Nissen’s decision to utilize Toyota Industries’ companies.
logistics solutions in an effort to improve this area of operations
Business Model for Wanbishi Archives
Customer Wanbishi Archives Storage center
Request for storage
FAX・TEL
Searched
documents
Request for retrieval
and/or delivery of
Receiving requests Retrieve
required documents
Internet Digitization Document boxes
Distribution by e-mail Mail distribution
or fax (or via Website) Ledgers/
PC sales promotion
High-volume digitization materials
Storage/ Delivery
Worksite delivery
Data
Destruction and
Delivery recycling center
Data destruction
Unnecessary
documents
Transportation

Focus on Business
Textile Machinery
Sales of Air-Jet
Looms Surpass
10,000 Units to an
All-Time High
The history of the Toyota Group began with the
invention of an automatic weaving machine by
Toyota Industries founder Sakichi Toyoda. With
a long history dating back to the origin of Toyota
Industries, the Textile Machinery Business, as an
industry leader, has built an integrated structure
that encompasses functions ranging from
development to sales. Our air-jet looms have
maintained the top global market share, while
our ring spinning frames, roving frames and
other spinning machinery have garnered high
acclaim from customers worldwide.

Textile Machinery
Weaving Machinery demand subsequently surged to over 20,000 units from around
Toyota Industries manufactures and sells two types of weaving 2002. This increase was driven by a confluence of several factors,
machinery: air-jet looms, which insert weft yarns using air, and water- including improvements in productivity for our air-jet looms and
jet looms, which use water for the same purpose. Our state-of-the- development of air-jet looms that enable the production of woven
art weaving machinery, excellent in basic performance requirements fabrics previously difficult to produce, in addition to a shift in textile
for high speed and reliability, incorporates such advanced functions production to China. Consequently, Toyota Industries supplied
as monitoring and remote setting via the Internet, earning high praise roughly half of all global demand in fiscal 2007. In March 2007, we
from customers around the world. further expanded our product offerings when we initiated production
In fiscal 2007, sales of air-jet looms, our mainstay product, of a new water-jet loom. Rounding out our product lineup, we also
reached a record-high 10,600 units, supported by a large increase manufacture and sell such preparatory machinery for weaving as
in sales in China. Up until roughly five years ago, total worldwide sizing machines for yarns.
demand for air-jet looms stood at around 10,000 units, but this
Weaving Machinery
JAT710 air-jet loom LWT710 water-jet loom Mackee Filamaster

Sizing machine for spun yarn Sizing machine for filament yarn
Spinning Machinery also produce and sell combers and drawing frames.
The Spinning Machinery Business meets a broad range of customer Overseas, Kirloskar Toyoda Textile Machinery Private Limited
needs by offering an extensive lineup of spinning machinery, including (KTTM), our subsidiary in India, manufactures ring spinning frames for
high-speed ring spinning frames and roving frames, capable of both the local market.
spinning high-quality yarns and providing superior productivity. We
Spinning Machinery
RX240NEW ring spinning frame FL100 roving frame DX8 drawing frame VC5A comber
Topics
KTTM Marks its 10th Anniversary

In 2006, KTTM marked the 10th anniversary of its establishment in India. Founded
as a joint venture with India’s Kirloskar Group, KTTM began production and sales of
spinning frames in 1997. In 2004, KTTM commenced production of aluminum die-
cast components for manual transmissions for Toyota Motor Corporation’s Innovative
International Multi-Purpose Vehicle Project. KTTM further expanded its scope of
activities in 2006 when it began engaging in after-service and sales of lift trucks in the
Bangalore District.

Focus on Business
Electronics
On the Cutting Edge

of Providing High-
Quality Electronics
Products
Toyota Industries engages in the manufacture
of semiconductor package substrates through
TIBC Corporation (TIBC)*1. We are also actively
involved in the manufacture of low-temperature
polysilicon TFT-LCD panels at ST Liquid Crystal
Display Corp. (STLCD)*2 and ST Mobile Display
Co., Ltd. (STMD)*3. Utilizing our expertise rooted
in the Toyota Production System—a source
of Toyota Industries’ competitiveness—we
quickly provide a stable supply of high-quality
electronics products.
*1 A joint venture with Ibiden Co., Ltd. (Ibiden)
*2, *3 Joint ventures with Sony Corporation (Sony) accounted for as equity-method affiliates,
with Toyota Industries holding a 50% stake in STLCD and a 20% stake in STMD.

Electronics
Plastic Package Substrates for performance products by achieving synergies derived from the
High-Performance Semiconductors and quality management and production technology capabilities of Toyota
Substrates for IC Cards Industries and Ibiden, an industry leader in this field.
TIBC manufactures leading-edge semiconductor package TIBC’s semiconductor plastic package substrates are sold
substrates to enable more compact, lighter weight PCs, mobile through Ibiden to the world’s premier semiconductor manufacturers
phones and other electronic devices. Specifically, TIBC currently and semiconductor-packaging companies for such applications as
manufactures plastic package substrates, including flip chip (FC) PCs and mobile phones. At the same time, TIBC’s FPC substrates
package substrates and wire bonding package substrates, for high- are also marketed through Ibiden to SIM card and smart card
performance semiconductors, as well as flexible printed circuit (FPC) suppliers mainly in Europe and China for integration into credit cards
substrates for IC cards. TIBC is able to supply high-quality, high- and telephone cards.
TIBC
Wire bonding Flip chip Flexible printed circuit

package substrate package substrate package substrate
Low-Temperature Polysilicon TFT-LCD Panels companies are used in the mobile devices of Sony and other high-
for Mobile Devices tech device manufacturers worldwide.
STLCD and STMD manufacture small- and medium-sized low- Since commencing mass production in 1999, STLCD has
temperature polysilicon (poly-Si) TFT-LCD panels, primarily for such achieved cumulative production of 200 million panels as of August
applications as video and digital still cameras, and mobile phones. 2006. STMD, our second manufacturing base after STLCD, began
These TFT-LCD panels are noted for such outstanding basic features mass production of panels on schedule in April 2006.
as high-quality, high-resolution images and low energy consumption.
In addition, Sony is promoting its system-on-glass technology that
integrates the display device and its driver circuits onto a single glass
substrate (panel). This technology enables highly reliable, lightweight
and miniaturized display modules, and in turn contributes to both
companies’ proactive efforts to develop display devices for compact,
lightweight mobile products.
Through synergies that fully utilize Sony’s technological
capabilities and Toyota Industries’ production technologies, STLCD
and STMD have built optimal production systems for creating
globally competitive products. The products manufactured by these ST Liquid Crystal Display Corp.
STLCD
Low-temperature polysilicon TFT-LCDs

Research and Development
Company-Wide Strategic Research and Division-Based Product

Development and Improvements Form the Two Pillars of R&D
Guided by its founding spirit, “Be ahead of the times through endless creativity, inquisitiveness and
pursuit of improvement,” Toyota Industries undertakes Company-wide strategic R&D aimed not just
at improving short-term business results but also at achieving sustainable growth over the long term.
At the same time, each business division actively carries out R&D activities that are important for
ensuring that the Toyota Industries Group maintains its competitive advantage.
Toyota Industries’ R&D can be broadly divided into the two categories technologies for shortening product development times and reducing
of product development and improvements performed independently lead-times from development to production and shipping. Moreover,
within each business division in addition to R&D undertaken mainly “e-Lab” is building an infrastructure and systems for allowing each
by the Research & Development Center. The latter is carried out from business division to undertake joint development with overseas
the perspective of Company-wide management strategy. bases.
Toyota Industries operates in an extensive range of business Toyota Industries actively promotes in-house manufacturing
spheres, and each of the Company’s divisions has its own of essential processing and assembly equipment. The Machinery
distinctive technological strengths, core technologies and market & Tools Sub-Division develops and manufactures specialized
characteristics. Accordingly, to efficiently develop products tailored manufacturing equipment for the Compressor Division, Engine
to customer needs, it is imperative that technical development Division, Toyota Material Handling Company and affiliates.
sections of each division play a leading role in product improvement, Manufacturing such equipment internally yields a host of advantages,
technology development and applied research. As such, these which include speedy development and manufacturing through
technical development sections maintain their own experiment cooperation among development and design departments as well as
equipment and research laboratories and proactively undertake the rapid launch of production lines. Toyota Industries’ outstanding
technology development activities in cooperation with manufacturing manufacturing equipment also contributes to the Toyota Industries
divisions based on product development plans. Group’s manufacturing, serving as a source of competitiveness for
The Research & Development Center within the Corporate each business and protecting against any outflow of proprietary
Center (corporate headquarters) engages in R&D in technology production know-how. We are also utilizing our strength in creating
fields such as materials fields that serve as a common foundation manufacturing equipment for the quick start-up of operations at
for all divisions in addition to undertaking R&D in new domains. The overseas production bases while striving to nurture personnel
Research & Development Center is also working to further strengthen with expertise in such equipment, as we aim to further raise the
and enhance the efficiency of our Company-wide R&D structure, production technology capabilities of the Toyota Industries Group.
promote lateral transfers of technologies among different divisions In fiscal 2007, R&D expenses increased 10.9% from the previous
and investigate new technology development themes. Concurrently, fiscal year to ¥34.5 billion. By segment, R&D expenses amounted to
the center deploys the accumulated technologies and know-how of ¥16.2 billion in the Automobile Segment, ¥15.7 billion in the Materials
each business division in a continuous search for and creation of new Handling Equipment Segment, ¥0.8 billion in the Textile Machinery
products and services that will form the pillars of our future business. Segment and ¥1.6 billion in the Others Segment.
Depending on specific research themes, the center also promotes
joint research in collaboration with Toyota Central Research &
Development Laboratories, Inc., an R&D facility of the Toyota Group
that engages in basic research, as well as with universities and other
outside R&D institutions.
Our “e-Lab” IT
research laboratory
within the Information
System Development
Department
undertakes IT-
related R&D. This
laboratory is making NC machine tool Circuit board inspection system
for aluminum parts with high-resolution line scan
progress in research camera
on digital simulation

New Products and Technologies Developed by Toyota Industries in Fiscal 2007
New GENEO accounting for approximately 50% of the

In September 2006, Toyota Industries entire Japanese lift truck market, and
commenced domestic sales of 1- to 3.5-ton are used by a wide variety of customers
internal combustion lift trucks (sold as the primarily in the transport and warehouse
GENEO in Japan, 8-Series in North America industries. To address the needs of this
and International, and the Toyota Tonero in market, Toyota Industries developed the
Europe) after a full model change. The 1- to new GENEO to attain an even higher level
3.5-ton class internal combustion lift trucks of performance and functionality in the
represent the largest market for lift trucks, areas of safety, environmental features
and ease of operation.
Development of Hybrid Systems for Lift Trucks

Heightened global environmental awareness coupled with persistently high crude oil
prices has spurred a rapidly rising market need for improved fuel economy. Paralleling this
development, there are high hopes that hybrid technologies will enable significant increases
in fuel economy for internal combustion lift trucks.
Utilizing the Toyota Group’s hybrid technologies and components, Toyota Industries is
developing highly efficient hybrid systems for lift trucks that offer superior reliability, durability
and cost performance. Our new hybrid concept model
maintains the same performance as conventional internal
combustion lift trucks while significantly raising fuel economy
and achieving a balance between high environmental
performance and cost efficiency. We will continue
pursuing the development of new technologies for the
commercialization of hybrid lift trucks.
Textile Machinery Automobile (Car Electronics)
LWT710 Water-Jet Loom Development of Air-Cooled DC-DC Converter

Toyota Industries launched the new LWT710 water-jet loom, Toyota Industries has developed an air-cooled DC-DC converter
which features a newly developed nozzle pump and a short for hybrid vehicles. This converter is an essential component
stroke for achieving high versatility and weaving high-quality for down-converting the high voltage of the main battery—the
textiles. Moreover, the LWT710 shares a common frame with drive source for hybrid vehicles—to the lower voltage needed
the world’s top-selling JAT710 air-jet loom, thereby enabling for operating lights, audio systems and other in-car devices.
high-speed, low-vibration weaving of all types of textiles. The Incorporating Toyota Industries’ independently developed IC,
use of a common frame also permits a significant increase in the new DC-DC converter enables a more than 20% reduction
the use of common spare parts. in the number of components. Unlike the conventional water-
cooling method, an air-cooled converter affords greater
freedom for positioning within the
vehicle. Our new DC-DC converters
are fitted on the Camry
Hybrid that Toyota
Motor Corporation
began selling in North
America in May 2006.

Corporate Governance
Maintaining and Enhancing Efficient dedicated personnel who work directly for the corporate auditors and
Management and the Fairness and are not under the authority of our directors.
Transparency of Corporate Activities The corporate auditors also cooperate with the Audit Office,
We believe that enhancing the long-term stability of corporate which is in charge of internal audits, and independent auditors,
value and maintaining society’s confidence in Toyota Industries are receiving reports as appropriate and, where necessary, conducting
extremely important management issues. Taking the enrichment additional surveys.
of society through business activities as a basic premise, we also
consider it vital to build good relationships with stakeholders ranging Thorough Implementation of Compliance via
from shareholders and customers to business partners, local Corporate Code of Conduct Committee
communities and employees. Toyota Industries perceives compliance as observing laws and
With this in mind, we are working to maintain and enhance regulations in addition to respecting local cultures and customs in a
management efficiency and the fairness and transparency of manner that is in tune with the changing times.
company activities by strengthening corporate governance. In The Corporate Code of Conduct Committee plays a central
addition to building a corporate governance system that can respond role in strengthening the Company’s systems and mechanisms,
quickly and flexibly to changes in the business environment, we are stipulating conduct guidelines and making every effort to ensure that
working to reinforce management supervision and to provide timely all employees are informed through education and enlightenment
and accurate information disclosure. activities. This committee is in charge of controlling the Toyota
Industries Group’s overall corporate activities regarding compliance
Towards Speedy and Efficient Management and crisis response. Chaired by the president, the committee
Toyota Industries is striving to increase the efficiency and speed of consists of directors, including the chairman and the president, as
management as well as facilitate appropriate decision-making. We well as managing officers and corporate auditors, and meets several
hold Board of Directors meetings every month to discuss and resolve times a year. Confirming the status of any important incidents that
important management matters and monitor business operations. may have occurred along with the countermeasures and responses
A Management Committee has also been established to discuss adopted, the committee draws on these outcomes in deliberating on
important matters such as corporate vision, management policies, the matters to be addressed in the coming fiscal year.
medium-term business strategies and major investments. This In conjunction with our overall efforts to further strengthen our
committee consists of directors above the executive vice president compliance system, under the direction of the Corporate Code of
level, and when the president considers it necessary, other relevant Conduct Committee, we designated a number of departments as
directors also attend meetings. legal compliance departments to provide thorough guidance to other
We have adopted a divisional organization system and have divisions and departments on respective legal compliance.
set up a Business Operation Committee to enable the president to Toyota Industries also established the Compliance Subcommittee
oversee business operations through general managers (directors) of and the Information Security Subcommittee. These subcommittees
each division. are comprised of a chairman nominated from among directors and
At the Management Council, directors and managing officers members of relevant divisions and departments, and meet each
convene to share reports on the monthly status of operations of each month to consider concrete measures directed toward boosting
business. compliance based on individual action plans.
These committees and meetings facilitate precise decision- The Audit Office and designated legal compliance departments
making, ensuring fair and efficient management. cooperate in supervising compliance in individual divisions,
departments and affiliates in Japan and overseas.
Strengthening Auditing through the Board of
Auditors and Corporate Auditor’s Office Appropriate and Timely Disclosure of
Toyota Industries has chosen to maintain a Corporate Auditor/Board Information
of Corporate Auditors system. The Board of Corporate Auditors To enhance management transparency, Toyota Industries is working
consists of five corporate auditors, three of whom are independent to strengthen its accountability by publishing quarterly financial
auditors who bring an outsider’s viewpoint and an auditing statements and establishing an Investor Relations Office to provide
perspective combined with professional experiences and careers to information to shareholders and investors. We have also set up an
our internal monitoring function. Meetings of the Board of Corporate Information Disclosure Committee to ensure the completeness,
Auditors are held once a month to discuss and make decisions on appropriateness and timeliness of important information disclosed in
important matters, such as auditing policy and reporting. financial statements and other materials.
The Corporate Auditor’s Office has been established to reinforce
the auditing of duties carried out by directors. It is staffed by five

Corporate Governance Structure of Toyota Industries Corporation
Shareholders’ Meeting
Appointment/ Appointment/
Reporting Appointment/
Dismissal Dismissal
Reporting
Dismissal
Board of Corporate Auditors Cooperation

5 auditors Independent Auditors
(including 3 external auditors)
Monitoring Board of Directors Reporting
Monitoring Monitoring 16 directors Reporting Accounting
(including 1 external director) audit
Corporate Auditor’s Office Appointment/ Discussing/

Monitoring Reporting
President
Directives
Directives
Management Reporting Reporting

Committee Management Business Operation
(Deliberates on Council Committee
important matters from (Reports on execution (Follows up on execution Committees* Audit Office
management’s of business operations) of business operations)
perspective) Directives Internal audits
Directives Directives Directives
Discussing/Reporting Reporting Reporting Reporting Reporting
Directors/Managing Officers
Business Divisions/In-House Company/Departments
Members of the Respective Committees and Meeting Frequency * Major Committees
• Board of Directors: 16 directors (including 1 external director) Corporate Code of Conduct Committee
participate in monthly meetings.
• Management Committee: Meetings are held whenever important Environmental Committee
matters arise, and are attended by the chairman, the president, directors
Export Transaction Control Committee
above the executive vice president level and other relevant directors and
managing officers, as specified by the president and according to the
Stock Option Committee
matters in question.
• Management Council: Directors and managing officers participate in
monthly meetings.
• Business Operation Committee: The president, executive vice
presidents and divisional general managers participate in two regular
meetings before the interim and annual closing of accounts while
irregular meetings are also held as required.

Environmental and Social Contribution Efforts
Environmental Activities also succeeded in reducing resource consumption and energy costs.
Under our current Medium-Term Management Plan, we are
Achieving Compatibility between targeting consolidated net sales of more than ¥2,000 billion for
Environmental Protection and Economic fiscal year 2011. Net sales in fiscal 2006 totaled ¥1,505.9 billion.
Development Accordingly, reaching the Medium-Term Management Plan target
The Toyota Industries Group is aiming to achieve compatibility means increasing net sales by 30% over five years. This means that
between both environmental protection and economic development, if environmental protection measures remain at the current level
and to that end, all of our employees are working together to tackle as our sales increase, the environmental load would also increase
the challenging task of environmental management. By means of our proportionately. Taking this into account, we have formulated the
products and services, the Toyota Industries Group is undertaking Fourth Environmental Action Plan, which contains even more
daily business activities to contribute to the world’s economic stringent targets than previous plans and primarily focuses on the
development and the creation of vibrant and healthy communities. concept of balancing environmental protection with economic
Further, we believe that in every aspect of our business operations activities.
it is essential to constantly give environmental considerations to the
overall product lifecycle. Ensuring Environmentally Sound Products
and Production
Launch of Fourth Environmental Action Plan The Toyota Industries Group is undertaking initiatives to reduce
In the Third Environmental Action Plan, which ran from fiscal 2002 environmental load throughout the product lifecycle.
through fiscal 2006, we concentrated our efforts on the introduction Coinciding with the Fourth Environmental Action Plan started in
of equipment that promoted environmental protection such as fiscal 2007, we revised our environmental management system. A
cogeneration systems and the use of more efficient sources of Production Environment Subcommittee was set up as part of the
energy at plants. In achieving the targets of the five-year plan, we Environmental Committee, with the goal of enhancing comprehensive
Key Points of the Fourth Environmental Action Plan

Address environmental concerns by working in harmony
with both regional communities and global society.
Curbing Global Warming
Strengthen the development and sale of environmentally
friendly products to promote environmental action at the
Harmony product use stage of the product lifecycle, when the impact
on the environment is greatest.
Reducing Greenhouse Gas Emissions
Actively promote countermeasures to global warming, the
most serious of the world’s environmental issues.
Improving Resource Productivity
Promote the reduction of resource wastage, keeping in
Sustainable mind soaring raw materials costs caused by resource and
Management energy problems.
Reducing Environmental Risk Factors
Reduce environmental risks by enhancing management
of chemical substances and curtailing emissions of
Enhancement Responsibility
substances of concern.
Global Environmental Management
Keep in mind that, as production by Toyota Industries
Group companies increases, the Group’s overall impact
Enhance the eco-efficiency of Fulfill our social responsibility on the environment rises. Strengthen consolidated
all our business activities, to participate in environmental environmental management, giving priority to curbing global
products, and services. conservation.
warming, increasing resource productivity and reducing
environmental risk factors.

environmental measures in the area of production. We determined Social Contribution Activities
that the new subcommittee should aim to successfully combine
global environmental conservation and economic growth. Committed to a Wide Range of Corporate
Moreover, in ensuring our products are as environmentally Citizenship Activities that Benefit Local
friendly as possible, Toyota Industries purchases components, Communities
materials and equipment with minimal adverse environmental impact While achieving corporate development and longevity, Toyota
from business partners who maintain a high level of environmental Industries strives to fulfill its role as a good corporate citizen so that
consciousness. In order to comply with regulations regarding the use the regions that provide a foundation for its corporate activities
of substances of concern, such as the European Union’s end-of-life and the life of its employees become more prosperous and more
vehicles directive (EU-ELV), we also require suspension or reduction comfortable to live in. Based on this perspective, we are committed
of use as well as the management of usage of these substances to a wide range of social contribution activities that benefit local
included in products or manufacturing processes based on our green communities, mainly in the areas of social welfare facilities and traffic
procurement guidelines. safety activities, making donations to welfare events, community
By actively contributing to environmental protection in the programs for the education of young people, community and sports
areas of products and production, more customers will support our events, environmental protection activities and providing company
products. We believe that the result will be less impact on the global facilities for use in various community activities.
environment, and thus, contribute to the realization of a sustainable
society. Social Contribution Activity System
Toyota Industries and its affiliates worldwide are promoting
Please refer to our Social & Environmental Report for more details. social contribution activities at each location in accordance with
local circumstances. As one example, the Heartful Group, a full-
time organization established within Toyota Industries’ General
Administration Department, drafts annual plans that aim to enhance
planning and implementation of volunteer activities, communication
with local communities and in-house education and enlightenment
activities, among other initiatives.
Environmental Management System Organizational In order to promote social contribution activities throughout the
Framework Toyota Industries Group, including at our overseas affiliates, in fiscal
2006 Toyota Industries established the Regional Society Contribution
Changes to Company-Wide Organization Subcommittee under the Corporate Code of Conduct Committee,
Environmental Committee which is under the direct authority of our president. The Regional
Society Contribution Subcommittee is studying medium-term actions
Product (Now-defunct) Resource Pollution the entire Toyota Industries Group can take to promote corporate
Technology Energy Utilization Prevention
Subcommittee Subcommittee Subcommittee Subcommittee citizenship on a global scale while also considering key activities to
integrated into enhance our corporate value.
(Newly created) Production Environment Subcommittee
Please refer to our Social & Environmental Report for more details.
Company-Wide Organization (From FY2007) •Determining corporate managerial direction

for important environmental issues
Environmental Committee
Chairman: Company president
Members: Chairman of Product Technology Subcommittee, chairman of Production
Environment Subcommittee, divisional general managers
Aims: Promote and integrate overall corporate environmental response
Product Technology Subcommittee Production Environment Subcommittee

Chairman: Executive vice president Chairman: Executive vice president
Members: General managers of each Members: General managers of each
division such as engineering dept., others division such as engineering dept., others
Aims: Promote reduction of environmental Aims: Comprehensively promote energy
impact and minimization of environmental saving and risk minimization in company
risk in company products production processes
(http://www.toyota-industries.com/csr/library/)
Each Division •Promote EMS based on Environmental Committee accounting decisions

History
Foundation – 1980s
1926 1952 1974

Toyoda Automatic Loom Works, Ltd. Automobile engine (S-type gasoline 6P compressor production starts.
(now Toyota Industries Corporation) engine) production starts.
established to manufacture and 1977
market automatic looms invented by 1953 Swash-plate compressor technology
Sakichi Toyoda.
Kyowa Plant starts operations, licensed to Chrysler and Ford.
producing engines and assembling
Compressor Division separates from
automobiles.
Textile Machinery Division.
1955 1978
Vehicle Division set up.
Starlet (automobile) production starts.
1956 Aerial lift equipment production

starts.
Lift truck production starts.
Founder 1959 1980

Sakichi Toyoda 1929 JA air-jet loom production starts.
P-type gasoline engine production
Spinning frame production starts.
starts.
Sakichi Toyoda was born in Automatic loom patent sold to Platt 1981
Brothers & Co., Ltd. of the U.K. 1960 10P compressor production starts.
Shizuoka Prefecture, Japan, in
Shovel loader production starts.
1867. He became an inventor 1933 1982
Car air-conditioning compressor
while still in his teens and Automobile Division set up. Production starts on C-type diesel
(CC3A type, CC3B type) production
devoted his life to the study and engines for small passenger cars.
starts.
development of textile machinery. 1934 Hekinan Plant starts operations,
A-type automobile engine completed. 1963 producing automobile diesel engines.
Starting with a wooden
Dump truck production starts.
handloom (weaving machine), 1935 1985
Friction welder production starts.
he subsequently pioneered a Prototype of Model A1 passenger car Engine Division separates from
completed. Vehicle Division.
new era in textile machinery with 1964
10PA compressor production starts.
inventions that included Japan’s J-type diesel engine production
starts.
first power loom, the circular loom 1986
and the Toyoda Type G automatic Company awarded
1967
loom. Sakichi was awarded 84 the Deming
Nagakusa Plant starts operations,
Application Prize
patents and 35 utility models in producing small commercial vehicles.
for quality control
Deming Application
his lifetime and is remembered Publica (van) and Mini Ace implementation. Prize
(automobile) production starts.
with pride in Japan as one of the
Electric counterbalanced lift truck X300 series lift truck production
world’s greatest inventors. We Company unveils Model G1 truck
production starts. starts.
at a new car-release exhibition in
at Toyota Industries are proud to Shibaura, Tokyo.
carry on the engineering spirit of 1968 1987
1937 Open-end spinning machine Sprinter Cielo (exported as the
our illustrious founder.
production starts. Corolla Lift Back) production starts.
Automobile Division separates and
becomes Toyota Motor Co., Ltd. (now Electronics Sub-Division set up.
Toyota Motor Corporation). 1970
Takahama Plant starts operations, 1988
1940 producing industrial vehicles.
Toyota Industrial Equipment Mfg.,
Steel Production Division separates Inc. (TIEM) established in Columbus,
and becomes Toyoda Steel Works, 1971 Indiana, in the U.S., as a joint venture
Ltd. (now Aichi Steel Corporation). Corolla (van) production starts. with Toyota Motor Corporation.
Divisional organization system RX100 ring spinning frame production
1944 introduced (3 divisions: Textile starts.
Obu Plant starts operations, Machinery, Industrial Vehicle and
producing castings. Vehicle). 1989
Toyoda-Sulzer Manufacturing Ltd. Michigan Automotive Compressor,
1924 1949 established as a joint venture with Inc. (MACI) established in Jackson,
Toyoda Type G automatic loom Company stock listed on Tokyo, Sulzer Brothers, Ltd. of Switzerland Michigan, in the U.S., as a joint
invented by Sakichi Toyoda. Osaka and Nagoya stock exchanges. to produce projectile looms. venture with DENSO Corporation.

1990s – 2000s –
1990 1998 2002 TD Automotive Compressor Kunshan,

Co., Ltd. (TACK) established in
Sprinter Carib (automobile; TD Deutsche Klimakompressor Advanced Logistics Solutions Co.,
China as a joint venture with DENSO
exported as the Corolla Wagon) GmbH (TDDK) established in Ltd. (ALSO) established to plan
Corporation and other entities
production starts. Germany as a joint venture with overall logistics operations and
to produce car air-conditioning
DENSO Corporation to produce car operate distribution centers.
Company compressors.
air-conditioning compressors.
receives 1990 PM Higashiura Plant starts operations,
AD diesel engine production starts.
Excellent Plant GENEO (7FG/D outside Japan) producing parts for car air-
Award. internal combustion counterbalanced conditioning compressors.
lift trucks introduced.
Toyota Motor Industries Poland
1992 TIBC Corporation (TIBC) established Sp.zo.o. (TMIP) established in Poland
Materials Handling System Division as a joint venture with Ibiden Co., Ltd. as a joint venture with Toyota Motor
set up. to produce semiconductor package Corporation to produce diesel
substrates. engines.
Production starts on automated
storage and retrieval systems. 10S compressor production starts.
2003
JAT600 air-jet loom production
1999 JAT710 air-jet loom production KD diesel engine production starts.
starts.
starts.
Vitz (Yaris outside Japan) production
1993 starts.
RX200 ring spinning frame Company takes over water-jet loom
production starts. business from Nissan Texsys Co.,
Ltd.
1994 1CD diesel engine production starts.
X500 series internal combustion
GENEO-B (7FB outside Japan)
counterbalanced lift truck GENEO-E (7FBE outside Japan)
electric counterbalanced lift trucks
production starts. three-wheel electric counterbalanced New RAV4 production starts after a
introduced.
lift truck production starts. full model change.
Toyota Industry (Kunshan) Co.,
Ltd. (TIK) established in China as 2000 Aichi Corporation, a manufacturer of
a joint venture with Toyota Tsusho special-purpose vehicles, becomes
LW600 series water-jet loom
Corporation and Lioho Machine one of Toyota Industries’ subsidiaries.
production starts.
Works, Ltd.
BT Industries AB of Sweden, a world- 2004
R500 reach truck production
leading manufacturer of warehouse
starts. Toyota Industry Automotive
trucks, becomes a Toyota Industries
Parts (Kunshan) Co., Ltd. (TIAP) 2006
subsidiary.
1995 established in China as a joint venture
New GENEO (8FG/D outside Japan)
2UZ gasoline engine production with Toyota Tsusho Corporation
Toyota Industrial Equipment, S.A. internal combustion counterbalanced
starts. and Lioho Machine Works, Ltd. to
(TIESA) established in France as a lift truck production starts.
produce foundry parts.
joint venture with Toyota Motor Higashichita Plant starts operations,
Corporation and Manitou B.F. producing foundry parts. TD Automotive Compressor Georgia,
LLC (TACG) established in the U.S.
7SB compressor production starts.
2001 as a joint venture with DENSO
B500 electric counterbalanced lift Corporation to produce car air-
GENEO-R (7FBR outside Japan)
truck production starts. conditioning compressors.
reach truck production starts.
Kirloskar Toyoda Textile Machinery
Company takes over the Industrial 2005
Private Limited (KTTM) established
Equipment Sales Division of Toyota
in India as a joint venture with the Asahi Security Co., Ltd., which
Motor Corporation. 2007
Kirloskar Group. engages in collection and delivery of
TOYOTA Material Handling Company cash, management of sales proceeds LWT710 water-jet loom production
1996 established as an in-house company. and electronic security service, starts.
becomes a subsidiary of Toyota
JAT610 air-jet loom production RAV4 production starts.
Industries.
starts.
Name changed to Toyota Industries
Vitz (Yaris outside Japan) production
RX240 ring spinning frame Corporation.
starts after a full model change.
production starts.
1997
Compressor production at Kariya
Wanbishi Archives Co., Ltd. becomes
Plant reaches 100 million units.
a subsidiary of Toyota Industries.
6SE compressor production starts.
ST Liquid Crystal Display Corp.
(STLCD) established as a joint
venture with Sony Corporation.

Corporate Data (As of March 31, 2007)
Major Plants (Parent Company)

Start of
Main Products Operations
Kariya Plant Textile machinery, car air-conditioning compressors 1927
Obu Plant Parts for car air-conditioning compressors 1944
Kyowa Plant Electronic equipment, automotive press dies, production facilities, engine parts 1953
Nagakusa Plant Automobiles 1967
Takahama Plant Lift trucks, materials handling systems 1970
Hekinan Plant Engines for automobiles and industrial equipment 1982
Higashichita Plant Engines for automobiles, foundry parts, engine parts 2001
Higashiura Plant Parts for car air-conditioning compressors 2002
Major Consolidated Subsidiaries

% of
Company Name Location of Head Office Voting Rights
Japan
Aichi Corporation Saitama 51.1%
TIBC Corporation Aichi 60.0%
Mail & e Business Logistics Service Co., Ltd. Mie 50.5%
Asahi Security Co., Ltd. Tokyo 100.0%
TOYOTA L&F Tokyo Co., Ltd. Tokyo 100.0%
Altex Co., Ltd. Shizuoka 75.0%
Sun River Co., Ltd. Osaka 100.0%
Izumi Machine Mfg. Co., Ltd. Aichi 68.8%
TOYOTA L&F Keiji Co., Ltd. Kyoto 75.0%
Tokyu Co., Ltd. Aichi 63.3%
Advanced Logistics Solutions Co., Ltd. Aichi 100.0%
Toyoda High System, Incorporated Aichi 90.0%
Nishina Industrial Co., Ltd. Nagano 82.0%
ALTRAN Corporation Aichi 60.0%
KTL Co., Ltd. Tokyo 50.5%
TF Logistics Co., Ltd. Tokyo 51.0%
Tokaiseiki Co., Ltd. Shizuoka 92.1%
Taikoh Transportation Co., Ltd. Aichi 51.4%
SKE Inc. Aichi 100.0%
SK Maintenance Corporation Aichi 70.0%
Unica Co., Ltd. Aichi 100.0%
Iwama Loom Works, Ltd. Aichi 100.0%
Nagao Kogyo Co., Ltd. Aichi 100.0%
TOYOTA L&F Shizuoka Co., Ltd. Shizuoka 100.0%
Hara Corporation Gifu 100.0%
Sun Valley Inc. Aichi 100.0%
Mizuho Industry Co., Ltd. Aichi 93.8%
Sun Staff, Inc. Aichi 100.0%
ALT Logistics Co., Ltd. Aichi 60.0%
Shine’s Inc. Aichi 100.0%
Toyota Industries Well Support Corporation Aichi 100.0%
Europe
Belgium Toyota Material Handling Europe SA/NV Brussels 100.0%
Toyota Material Handling Belgium SA/NV Temse 100.0%
Denmark Toyota Truck Danmark A/S Vejle 100.0%
Toyota Truckudlejning Danmark A/S Vejle 100.0%

% of
France Toyota Industrial Equipment Europe, S.A.R.L. Ancenis, France/Brussels, Belgium 100.0%
Toyota Industrial Equipment, S.A. Ancenis 60.0%
Germany TD Deutsche Klimakompressor GmbH Straßgräbchen 65.0%
Toyota Gabelstapler Deutschland GmbH Duisburg 100.0%
Toyota Gabelstapler Stuttgart GmbH Stuttgart 70.0%
Italy Toyota Carrelli Elevatori Italia S.r.l. Bologna 100.0%
CESAB Carrelli Elevatori S.p.A. Bologna 100.0%
Norway Toyota Truck Norge AS Trondheim 100.0%
Toyota Truckutleie Norge AS Trondheim 100.0%
Sweden Toyota Industries Sweden AB Mjölby 100.0%
BT Industries AB Mjölby 100.0%
Toyota Industries Finance International AB Mjölby 100.0%
BT Products AB Mjölby 100.0%
Switzerland Toyota Textile Machinery Europe AG Zurich 100.0%
U.K. Toyota Industrial Equipment (UK) Limited Castleford, West Yorkshire 100.0%
Toyota Industrial Equipment (Northern) Limited Castleford, West Yorkshire 100.0%
North America
U.S.A. Michigan Automotive Compressor, Inc. Parma, Michigan 60.0%
The Raymond Corporation Greene, New York 100.0%
Toyota Industries North America, Inc. Elk Grove, Illinois 100.0%
TD Automotive Compressor Georgia, LLC Jefferson, Georgia 65.0%
Toyota Industrial Equipment Mfg., Inc. Columbus, Indiana 100.0%
Toyota Material Handling USA, Inc. Irvine, California 100.0%
ACTIS Manufacturing Ltd., LLC Grapevine, Texas 60.0%
Toyoda Textile Machinery Inc. Charlotte, North Carolina 100.0%
Toyota-Lift of Los Angeles, Inc. Santa Fe Springs, California 100.0%
Toyota Industries Personnel Service of America, Inc. Elk Grove, Illinois 100.0%
South America
Brazil Toyota Industries Mercosur Ltda. São Paulo 100.0%
Toyota Maquinas Texteis Brasil Ltda. São Paulo 100.0%
Asia and Oceania
Australia Toyota Industries Corporation Australia Pty Limited Sydney 100.0%
China Toyota Industry Automotive Parts (Kunshan) Co., Ltd. Kunshan, Jiangsu 60.0%
Toyota Industry (Kunshan) Co., Ltd. Kunshan, Jiangsu 70.0%
TD Automotive Compressor Kunshan Co., Ltd. Kunshan, Jiangsu 59.8%
Toyota Industries Trading & Logistics (China) Co., Ltd. Shanghai 100.0%
Toyota Material Handling (Shanghai) Co., Ltd. Shanghai 70.0%
India Kirloskar Toyoda Textile Machinery Private Limited Bangalore, Karnataka 95.1%
Major Affiliates Accounted for by the Equity Method

% of
Japan
ST Liquid Crystal Display Corp. Aichi 50.0%
Wanbishi Archives Co., Ltd. Tokyo 43.1%
Fuji Logistics Co., Ltd. Tokyo 26.8%
ST Mobile Display Corp. Shiga 20.0%
Europe
Poland Toyota Motor Industries Poland Sp.zo.o. Jelcz-Laskowice 40.0%

Directors, Corporate Auditors and Managing Officers (As of June 21, 2007)
Board of Directors
Chairman President
Tadashi Ishikawa* Tetsuro Toyoda*
Executive Vice President Executive Vice President Executive Vice President Executive Vice President
Norio Sato* Yoshikatsu Mizuno* Tatsuo Matsuura* Akira Imura*
* Representative Director
Senior Managing Directors Honorary Chairman
Shigetaka Yoshida Kazunori Yoshida Yoshitoshi Toyoda

Masafumi Kato Kosaku Yamada
Director
Yasuharu Toyoda Toshiyuki Sekimori
Yutaka Murodono Kimpei Mitsuya Tatsuro Toyoda
Corporate Auditors
Standing Corporate Auditors Corporate Auditors
Shigetaka Mitomo Hiroshi Okuda

Masanori Ito Fumio Kawaguchi
Katsuaki Watanabe
Managing Officers
Hiroya Kono Hirotaka Morishita Norio Sasaki
Kenji Takenaka Shinya Furukawa Toshifumi Ogawa
Satoshi Kaseda Hironori Ito Hayato Ikeda
Hiroshi Sakai Akira Onishi Toshifumi Onishi
Hirofumi Tsuji Per Zaunders Kouhei Nozaki
Yukio Yamakita Eishi Furuta Osamu Miura
Takaki Ogawa Tadayoshi Baba Taku Yamamoto
Kazue Sasaki Takashi Okubo Yukihisa Tsuchimoto

Financial Section
54 Consolidated Eleven-Year Summary

56 Management’s Discussion and Analysis of
66 Consolidated Balance Sheets
68 Consolidated Statements of Income
69 Consolidated Statements of Changes in Net Assets
70 Consolidated Statements of Cash Flows
71 Notes to Consolidated Financial Statements
92 Reports of Independent Auditors

Consolidated Eleven-Year Summary
Years ended March 31
The figures in this table are unaudited.
Millions of yen
2007 2006 2005 2004

For The Year
Net sales ¥1,878,398 ¥1,505,955 ¥1,241,538 ¥1,164,378
Operating income 89,954 64,040 53,120 52,631
Ordinary income 108,484 80,635 70,912 58,970
Net income 59,468 47,077 43,357 33,623
Overseas sales ¥ 791,913 ¥ 620,946 ¥ 539,002 ¥ 497,356
Depreciation and amortization 106,060 87,287 70,213 65,351
Capital expenditures 166,505 158,835 136,506 89,508
Research and development expenses 34,548 31,166 30,051 29,562
Per share of common stock (yen, U.S. dollars):
Net income per share — basic ¥ 189.88 ¥ 146.16 ¥ 135.09 ¥ 108.04
Net income per share — diluted 189.66 146.02 135.03 101.97
Total net assets per share 5,612.11 5,044.45 3,504.80 3,199.69
Cash dividends per share 50.00 38.00 32.00 24.00
At Year-End
Total assets ¥3,585,857 ¥3,245,341 ¥2,326,824 ¥2,011,995
Total net assets 1,810,483 1,611,227 1,115,747 1,016,763
Common stock 80,462 80,462 80,462 80,462
Number of shares outstanding (excluding treasury stock) 312,075 319,320 318,237 317,666
(thousands)
Cash Flows
Net cash provided by operating activities ¥ 177,467 ¥ 131,784 ¥ 100,095 ¥ 92,406
Net cash used in investing activities (164,446) (205,013) (128,230) (92,667)
Net cash provided by (used in) financing activities (19,749) 85,172 50,020 (56,015)
Cash and cash equivalents at end of year 108,569 112,596 100,535 77,212
Indices
Return on equity (ROE) (%) 3.5 3.5 4.1 3.8
Return on assets (ROA) (%) 1.7 1.7 2.0 1.8
Return on sales (ROS) (%) 3.2 3.1 3.5 2.9
Debt/equity ratio (%) 28.9 29.4 34.4 31.6
Interest coverage (times) 7.4 7.8 7.7 7.4
EBITDA (millions of yen, thousands of U.S. dollars) ¥ 191,007 ¥ 150,674 ¥ 128,381 ¥ 113,676
Number of employees at year-end 36,096 32,977 30,990 27,431
Notes: 1. U.S. dollar amounts have been translated from yen, for convenience only, at the rate of ¥118.05 = US$1, the approximate exchange rate on March 31, 2007.
2. Main changes in accounting standards and methods during the above periods are as follows. These changes have not been applied to the financial statements presented prior to each year
retroactively.
(1) Effective beginning the year ended March 31, 2007, the new accounting standards for directors’ bonus, presentation of net assets in the balance sheet, share-based payment and business
combinations have been applied. Details are described in Notes to Consolidated Financial Statements.
(2) Effective beginning the year ended March 31, 2005, the new accounting standards for impairment on fixed assets have been applied. Details are described in Notes to Consolidated Financial
Statements.
(3) Effective beginning the year ended March 31, 2003, the new accounting standards for net income per share have been applied.
(4) Effective beginning the year ended March 31, 2001, the new accounting standards for retirement benefits, financial instrument and foreign currency transactions have been applied.
(5) Effective beginning the year ended March 31, 2000, Toyota Industries Corporation (the “Company”) has used annual average exchange rate instead of the year-end rate in order to present
the operating results more precisely as significance of overseas consolidated subsidiaries had been increasing and their revenue and expenses were incurred throughout the fiscal years. The
Company has also adopted tax effect accounting due to the amendment of the accounting standards for income taxes.

Thousands of
2003 2002 2001 2000 1999 1998 1997 2007
¥1,069,218 ¥ 980,163 ¥ 767,382 ¥625,772 ¥558,875 ¥572,698 ¥530,851 $15,911,886

52,477 46,330 47,304 28,867 24,813 32,729 32,675 762,002
51,375 47,865 44,526 27,162 23,172 33,201 31,157 918,971
21,933 27,311 22,637 13,686 10,391 20,491 17,930 503,756
¥ 451,593 ¥ 396,470 ¥ 298,794 ¥191,992 ¥178,737 ¥150,417 ¥116,738 $ 6,708,292
59,154 55,173 46,454 42,751 34,379 27,958 28,042 898,433
87,559 88,319 127,273 44,746 60,468 62,006 35,407 1,410,466
29,705 29,985 26,195 24,061 23,231 23,112 19,691 292,657
¥ 70.19 ¥ 87.28 ¥ 75.90 ¥ 48.32 ¥ 36.30 ¥ 72.33 ¥ 63.55 $ 1.61

62.90 78.26 67.77 43.18 32.62 63.48 55.20 1.61
2,522.52 2,809.54 3,036.77 1,116.62 1,063.05 1,056.81 996.18 47.54
22.00 19.00 17.00 16.00 16.00 16.00 16.00 0.42
¥1,650,391 ¥1,770,401 ¥1,869,642 ¥685,914 ¥617,070 ¥593,003 ¥556,291 $30,375,755

738,867 878,812 951,298 316,293 301,158 304,097 281,154 15,336,578
68,046 68,021 68,018 40,178 40,178 40,133 31,457 681,598
292,777 312,796 313,260 283,260 283,296 287,752 282,233
¥ 103,183 ¥ 81,078 ¥ 78,412 ¥ 68,057 ¥ 44,133 ¥ 50,952 ¥ 51,327 $ 1,503,328

(95,120) (106,710) (155,870) (67,186) (96,222) (26,897) (74,968) (1,393,021)
57,775 1,225 94,472 27,499 24,368 (12,918) 69,081 (167,295)
136,929 71,119 95,296 77,332 49,955 74,303 62,322 919,691
2.7 3.0 3.6 4.4 3.4 7.0 6.5

1.3 1.5 1.8 2.1 1.7 3.6 3.6
2.1 2.8 2.9 2.2 1.9 3.6 3.4
55.6 35.9 30.7 60.5 51.6 37.5 46.0
6.7 5.8 9.1 14.5 16.4 17.6 13.0
¥ 95,472 ¥ 97,540 ¥ 79,921 ¥ 64,681 ¥ 51,033 ¥ 55,212 ¥ 55,548 $ 1,618,020
25,030 23,056 21,118 13,132 12,797 11,239 10,738
Deferred tax assets have been newly recognized in current assets, and investments and other assets. Deferred tax liabilities have been recognized in current and long-term liabilities.
(6) Effective beginning the year ended March 31, 1999, the Company has presented consolidated financial statements as follows: In the consolidated statements of income, enterprise taxes,
which had been included in selling, general and administrative expenses up to and including the previous year, have been included in income taxes.
Amortization of goodwill, which had been classified as a deductible item from income before income taxes until the previous year, has been included in selling, general and administrative
expenses. Equity in earnings/losses of affiliates, which had been added to or deducted from income before income taxes until the previous year, has been included in non-operating income
or expenses.
3. Net income per share, ROE and ROA are computed based on the average number of shares, total net assets and total assets, respectively, for each year.
4. Debt/equity ratio = Interest-bearing debt / Total net assets
5. Interest coverage = (Operating income + Interest and dividends income) / Interest expenses
6. EBITDA = Income before income taxes + Interest expenses - Interest and dividends income + Depreciation and amortization

Management’s Discussion and Analysis of
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations is based on information
known to management as of June 2007.
This section contains projections and forward-looking statements that involve risks, uncertainties and assumptions. You
should be aware that certain risks and uncertainties could cause the actual results of Toyota Industries Corporation and its
consolidated subsidiaries to differ materially from any projections or forward-looking statements. These risks and uncertainties
include, but are not limited to, those listed under “Risk Information” and elsewhere in this annual report.
The fiscal year ended March 31, 2007 is referred to as fiscal 2007 and other fiscal years are referred to in a corresponding
manner. All references to the “Company” herein are to Toyota Industries Corporation and references to “Toyota Industries” herein
are to the Company and its 162 consolidated subsidiaries.
efforts to strengthen its corporate structure by attempting to ensure

Result of Operations
customer trust through its dedication to quality, the development
Operating Performance of appealing new products, aggressive sales promotions and the
In fiscal 2007, the Japanese economy was on a steady recovery execution of a Group-wide program to reduce costs.
track. Private-sector capital investment increased on the back of As a result, total consolidated net sales of Toyota Industries
strong corporate earnings while consumer spending was on a mild amounted to ¥1,878.3 billion, an increase of ¥372.4 billion (24.7%)
upswing as employment conditions improved. The overall economic over fiscal 2006. (For a breakdown of operating results by business
outlook continued to remain strong overseas, with U.S. and European segment, refer to Operating Performance Highlights by Business
economies expanding and ongoing brisk growth in China. Segment.)
In this operating environment, Toyota Industries undertook At the profit level, ordinary income amounted to ¥108.4 billion,
Net Sales Operating Income and

Operating Income Ratio
(¥ Billion) (¥ Billion) (%)

2,000 90 18
80 16
70 14
1,500
60 12
50 10
1,000
40 8
30 6
500 20 4
10 2
0 0 0
FY 03 04 05 06 07 FY 03 04 05 06 07
Operating income (left)
Operating income ratio (right)

Ordinary Income and Net Sales of Operating Income of
Ordinary Income Ratio Automobile Segment Automobile Segment
(¥ Billion) (%) (¥ Billion) (¥ Billion)

120 12 1,000 50
100 10
800 40
80 8
600 30
60 6
400 20
40 4
200 10
20 2
0 0 0 0
FY 03 04 05 06 07 FY 03 04 05 06 07 FY 03 04 05 06 07
Ordinary income (left)
Ordinary income ratio (right)
an increase of ¥27.8 billion (34.5%) over fiscal 2006. Despite the Automobile Segment
effects of a steep rise in raw materials costs, as well as increases in Sales increased in the automobile industry as a whole. Although
depreciation and personnel expenses, this increase was achieved domestic sales were sluggish during fiscal 2007, higher sales in the
due largely to higher sales, cost-reduction efforts throughout the Asian and Latin American markets gave rise to an overall increase in
Group and an increase in non-operating income. Net income overseas sales.
amounted to ¥59.4 billion, an increase of ¥12.4 billion (26.3%) over Net sales of the Automobile Segment of Toyota Industries totaled
fiscal 2006. ¥904.8 billion, an increase of ¥158.1 billion (21.2%) over fiscal 2006.
Cost of Sales and Selling,

General and Administrative Expenses
Cost of sales for fiscal 2007 increased ¥310.3 billion (24.3%) over
fiscal 2006 to ¥1,586.7 billion. This increase reflected increases in Car Air-Conditioning
depreciation expenses, raw materials prices and personnel expenses
Compressor Unit Sales
in addition to an increase in net sales. (Million Units)
Selling, general and administrative expenses increased ¥36.2 25
billion (21.9%) to ¥201.6 billion, due primarily to increases in

personnel expenses. 20
Operating Income 15
Operating income for fiscal 2007 increased ¥25.9 billion (40.5%)

over fiscal 2006 to ¥89.9 billion, attributable mainly to an increase in 10
sales in Japan and overseas as well as Group-wide cost-reduction

activities. 5
Operating Performance Highlights 0

FY 03 04 05 06 07
by Business Segment
Following are the operating results by business segment. Net sales Japan
North America
for each segment do not include intersegment transactions. Europe
Asia and Oceania

Net Sales of Operating Income of Net Sales of Operating Income of
Materials Handling Materials Handling Logistics Segment Logistics Segment
Equipment Segment Equipment Segment
(¥ Billion) (¥ Billion) (¥ Billion) (¥ Billion)

800 50 100 3
40 80
600
2
30 60
400
20 40
1
200
10 20
0 0 0 0
FY 03 04 05 06 07 FY 03 04 05 06 07 FY 03 04 05 06 07 FY 03 04 05 06 07
The logistics-related business, which was included in the Others Segment, had
been separated and declared independently as the Logistics Segment starting
from fiscal 2006.
Within this segment, net sales of the Vehicle Business totaled and undertook proactive sales promotion activities, which contributed
¥470.2 billion, an increase of ¥98.2 billion (26.4%) over fiscal 2006. to strong sales for TOYOTA and BT brands. Following a full model
The RAV4 recorded solid sales in the United States and Europe, while change, Toyota Industries commenced sales of its mainstay model
the Vitz (Yaris overseas) posted strong sales outside Japan. 1- to 3.5-ton internal combustion lift trucks (sold as the GENEO
Net sales of the Engine Business totaled ¥167.4 billion, an in Japan, the 8-Series in North America and International, and the
increase of ¥35.1 billion (26.5%) over fiscal 2006, due mainly to Toyota Tonero in Europe) in September 2006 and January 2007 in
increases in sales of KD diesel engines for Toyota Motor Corporation’s Japan and the United States, respectively. The new lift truck provides
(TMC) Innovative International Multi-Purpose Vehicle (IMV) Series as even greater product value, featuring higher levels of performance in
well as AD diesel engines fitted in the RAV4 for Europe. terms of safety, environmental attributes and ease of operation. Aichi
Net sales of the Car Air-Conditioning Compressor Business Corporation, which engages in the manufacture and sales of aerial
totaled ¥235.4 billion, an increase of ¥19.5 billion (9.0%) over fiscal work platforms, posted a significant increase in sales bolstered by
2006. Although sales decreased in the domestic market, sales replacement demand from the electricity and telecommunications
increased in North America, Europe and China. industries.
Materials Handling Equipment Segment Logistics Segment

In the materials handling equipment industry as a whole, sales The overall operating environment was severe in the logistics industry
remained strong in the Japanese market. Overseas markets as the volume of cargo transport continued to decline in the domestic
continued to expand in conjunction with economic expansion in the market accompanied by an increase in costs resulting from higher
United States and Europe as well as the growth of BRICs (Brazil, crude oil prices.
Russia, India and China) economies. Net sales of the Logistics Segment totaled ¥89.4 billion, an
Net sales of the Materials Handling Equipment Segment totaled increase of ¥24.3 billion (37.3%) over fiscal 2006, due largely to
¥767.2 billion, an increase of ¥172.0 billion (28.9%) over fiscal 2006. the solid performance of the logistics solutions and transportation
As a result of a change in the fiscal year-end of the BT Industries businesses as well as an increase in the transport volume of
Group, net sales of the Materials Handling Equipment Segment automotive parts.
included sales of the BT Industries Group for the three-month period
from January to March 2006 amounting to ¥64.7 billion. During fiscal Textile Machinery Segment
2007, Toyota Industries continued to strengthen its sales network In the textile machinery industry as a whole, the mainstay Chinese

Net Sales of Operating Income (Loss) Net Sales of Operating Income of
Textile Machinery of Textile Machinery Others Segment Others Segment
Segment Segment (Including Elimination of
Intersegment Transactions)
(¥ Billion) (¥ Billion) (¥ Billion) (¥ Billion)

60 3 80 7
6
50
2
60
5
40
1
4
30 40
3
0
20
2
20
(1)
10 1
0 (2) 0 0
FY 03 04 05 06 07 FY 03 04 05 06 07 FY 03 04 05 06 07 FY 03 04 05 06 07
market remained strong on the back of robust capital investment year-end of the BT Industries Group comprising Toyota Industries
supported by rapid growth. subsidiaries. Conversely, operating income decreased ¥0.8 billion
Net sales of the Textile Machinery Segment totaled ¥58.4 (11.7%) to ¥5.9 billion, mainly as a result of an increase in pre-
billion, an increase of ¥8.7 billion (17.3%) from fiscal 2006. In fiscal production expenses at lift truck manufacturing subsidiaries.
2007, sales of more than 10,000 air-jet looms, primarily to China,
represented a notable achievement for the first time in 69 years for Europe
weaving machinery. Strong sales of spinning machinery in India also Net sales increased ¥95.8 billion (44.3%) over fiscal 2006 to ¥312.0
contributed to the remarkable performance of the segment. billion, while operating income totaled ¥11.2 billion, up ¥6.7 billion
(148.3%). These increases were due mainly to an increase in unit
Others Segment sales of lift trucks and a change in the fiscal year-end of the BT
Net sales of the Others Segment totaled ¥58.3 billion, an increase of Industries Group.
¥9.4 billion (19.2%) from fiscal 2006.
Others
Sales by Geographical Segment Net sales totaled ¥46.8 billion, an increase of ¥12.6 billion (37.0%),
Below are Toyota Industries’ operating results by geographical whereas operating income rose ¥1.7 billion (109.6%) to ¥3.1 billion.
segment. Net sales for each geographical segment do not include
intersegment transactions. Non-Operating Income and Expenses
Non-operating income increased ¥7.0 billion (16.0%) to ¥50.8 billion
Japan in fiscal 2007, owing primarily to an increase in dividends income
Net sales increased ¥222.8 billion (22.1%) over fiscal 2006 to from TMC.
¥1,232.1 billion, while operating income totaled ¥68.9 billion, up Non-operating expenses totaled ¥32.3 billion, an increase of ¥5.1
¥16.2 billion (30.7%). These increases were due mainly to a rise in billion (18.7%), due mainly to an increase in interest expenses.
unit sales of vehicles and engines.
Income before Income Taxes
North America Income before income taxes amounted to ¥108.3 billion, up ¥27.7
Net sales increased ¥41.2 billion (16.7%) to ¥287.3 billion, due mainly billion (34.4%), attributable primarily to an increase of ¥27.8 billion in
to an increase in unit sales of lift trucks and a change in the fiscal ordinary income.

Net Income per Share Total Assets, Total Net Assets
and Total Net Assets Ratio
(¥) (¥ Billion) (%)
200 4,000 80
180
3,500 70
160
3,000 60
140
2,500 50
120
100 2,000 40
80
1,500 30
60
1,000 20
40
20 500 10
0 0 0
FY 03 04 05 06 07 FY 03 04 05 06 07
Basic Total assets (left)
Diluted Total net assets (left)
Total net assets ratio (right)
Income Taxes and securities, Toyota Industries maintained a commercial paper

Income taxes increased ¥13.2 billion (46.7%) to ¥41.5 billion, due issuance capacity of ¥100.0 billion as of March 31, 2007.
largely to an increase in income taxes of the Company and the Aichi Toyota Industries continues to maintain its solid financial
Group. condition. Through the use of such current assets as cash and
cash equivalents and securities, as well as free cash flows and
Minority Interest in Consolidated Subsidiaries funds procured from financial institutions, Toyota Industries believes
Minority interests in consolidated subsidiaries amounted to ¥7.3 that it will be able to provide sufficient funds for the working capital
billion, up ¥2.1 billion (40.8%), as a result of strong performance by necessary to expand existing businesses and develop new projects,
subsidiaries. as well as for future investments.
Regarding fund management, the Company undertakes
Net Income integrated fund management of its subsidiaries in Japan, while Toyota
Net income totaled ¥59.4 billion, an increase of ¥12.4 billion (26.3%) Industries North America, Inc. (TINA) and Toyota Industries Finance
over fiscal 2006. Net income per share was ¥189.88, compared with International AB (TIFI) centrally manage the funds of subsidiaries in
¥146.16 in fiscal 2006. Diluted net income per share increased from North America and Europe, respectively.
¥146.02 to ¥189.66. Through close cooperation among the Company, TINA and
TIFI, we strive for efficient, unified fund management on a global
consolidated basis.
Liquidity and Capital Resources

Toyota Industries’ financial policy is to ensure sufficient financing
Cash Flows
and liquidity for its business activities and to maintain strong balance
sheets. Currently, funds for capital investments and other long-term Cash flows from operating activities amounted to ¥177.4 billion in
capital needs are provided from retained earnings and long-term fiscal 2007, due mainly to income before income taxes in an amount
debt, and working capital needs are met through short-term loans. of ¥108.3 billion. Net cash provided by operating activities increased
Long-term debt financing is carried out mainly through issuance of by ¥45.7 billion from ¥131.7 billion in fiscal 2006. Cash flows from
corporate bonds and loans from financial institutions. investing activities resulted in a decrease in cash of ¥164.4 billion
In addition to current assets such as cash and cash equivalents in fiscal 2007, attributable primarily to payments for purchases of

Cash Flows Investment in Property,
Plant and Equipment
(¥ Billion) (¥ Billion)
200 160
150 140
100
120
50
100
0
80
(50)
60
(100)
40
(150)
(200) 20
(250) 0
FY 03 04 05 06 07 FY 03 04 05 06 07
Net cash provided by operating activities Automobile
Net cash used in investing activities Materials Handling Equipment
Net cash provided by (used in) financing activities Logistics
Textile Machinery
Others
property, plant and equipment amounting to ¥155.5 billion. Net cash The primary breakdown comprised ¥8.8 billion for the Company,
used in investing activities decreased by ¥40.6 billion from ¥205.0 ¥20.4 billion for the BT Industries Group, ¥4.2 billion for Toyota
billion in fiscal 2006. Cash flows from financing activities resulted Industrial Equipment Mfg., Inc. and ¥2.2 billion for the Aichi Group.
in a decrease in cash of ¥19.7 billion in fiscal 2007, due mainly to Investment in property, plant and equipment in the Logistics
payments for repurchase of treasury stock in an amount of ¥35.5 Segment totaled ¥6.2 billion, including ¥13.0 million for the Company
billion. Net cash provided by financing activities decreased by ¥104.8 and ¥4.7 billion for Taikoh Transportation Co., Ltd.
billion from ¥85.1 billion in fiscal 2006. The Textile Machinery Segment made an investment in property,
After translation adjustments, cash and cash equivalents as of plant and equipment in the total amount of ¥1.0 billion, including ¥0.7
March 31, 2007 stood at ¥108.5 billion, a decrease of ¥4.0 billion billion for the Company.
from fiscal 2006. Necessary funds were provided by a portion of bonds as well as
internal funds and bank loans.
Investment in Property, Plant and Equipment
During fiscal 2007, Toyota Industries made a total investment of
¥158.6 billion in property, plant and equipment (including ¥29.6 billion
Strategies and Outlook
in vehicles and materials handling equipment for lease) in order to
launch new products, streamline and upgrade production equipment, Outlook for Results for Fiscal 2008
and augment R&D facilities. In fiscal 2008, ending March 31, 2008, despite an anticipated
In the Automobile Segment, investment in property, plant and slowdown in the overall growth rate, expansion of the Japanese
equipment totaled ¥57.1 billion. A primary breakdown of this amount economy is expected to continue. Uncertainties persist, however,
included ¥36.9 billion for the Company, ¥5.8 billion for TD Automotive regarding the direction of the U.S. economy and a sustained increase
Compressor Georgia, LLC, ¥4.3 billion for Tokyu Co., Ltd., ¥2.0 billion in crude oil prices, precluding optimism.
for Toyota Industry Automotive Parts (Kunshan) Co., Ltd., ¥1.5 billion For fiscal 2008, Toyota Industries forecasts consolidated net
for Tokaiseiki Co., Ltd., ¥1.5 billion for TD Deutsche Klimakompressor sales of ¥1,950.0 billion, ordinary income of ¥115.0 billion, operating
GmbH, ¥1.2 billion for Iwama Loom Works, Ltd. and ¥1.0 billion for income of ¥95.0 billion and net income of ¥63.0 billion. We are
Izumi Machine Mfg. Co., Ltd. determined to place utmost emphasis on product quality and develop
The Materials Handling Equipment Segment made an investment and market leading-edge products that anticipate customer needs.
in property, plant and equipment in the total amount of ¥56.0 billion. We will make further concerted efforts to engage in sales and service

activities and undertake cost-reduction activities. Principal Customers
Our projections are based on an exchange rate of ¥115.0 = Toyota Industries’ automobile and engine products are sold primarily
US$1. to TMC. In fiscal 2007, net sales to TMC accounted for 35.5% of
consolidated net sales. Therefore, TMC’s vehicle sales could have an
impact on Toyota Industries’ business results. As of March 31, 2007,
TMC held 24.8% of the Company’s voting rights.
Dividend Policy
The Company regards the benefits of shareholders as one of its most Product Development Capabilities
important management policies. Based on this stance, we will strive Based on the concept of “developing appealing new products,”
to strengthen Toyota Industries’ corporate constitution, promote Toyota Industries proactively develops new products by utilizing its
proactive business development and raise its corporate value. leading-edge technologies, as it strives to anticipate increasingly
The Company’s dividend policy is to meet the expectations of sophisticated and diversifying needs of the market and ensure the
shareholders while giving full consideration to business performance, satisfaction of its customers. R&D activities are focused mainly on
capital demand, the dividend payout ratio on a consolidated basis developing and upgrading products in current business fields and
and other factors. Toyota Industries’ Ordinary General Meeting of peripheral sectors. Toyota Industries expects that revenues derived
Shareholders, held on June 21, 2007, approved a year-end cash from these fields will continue to account for a significant portion of
dividend of ¥28.0 per share. Including the interim cash dividend of total revenues and anticipates that future growth will be contingent
¥22.0 per share, cash dividends for the year totaled ¥50.0 per share, on the development and sales of new products in these fields. Toyota
an increase of ¥12.0 per share over fiscal 2006. Industries believes that it can continue to develop appealing new
The dividend payout ratio was 38.9%. On a consolidated basis, it products. However, Toyota Industries may not be able to forecast
was 26.3%. market needs and develop and introduce appealing new products
Toyota Industries will use retained earnings to improve the in a timely manner. This could result in lower future growth and
competitiveness of its products, augment production capacity in have an adverse impact on Toyota Industries’ financial condition
Japan and overseas, as well as expand into new fields of business and business results. Such a situation could result from risks that
and strengthen its corporate constitution in securing future profits include no assurance Toyota Industries can allocate sufficient future
for its shareholders. It will also use retained earnings to repurchase funds necessary for the development of appealing new products;
treasury stock. no assurance that product sales will be successful, as forecasts of
The Company’s Articles of Incorporation stipulate that it may pay products supported by the market may not always be accurate; and
interim cash dividends as prescribed in Article 454-5 of the Corporate no assurance that newly developed products and technologies will
Law, as well as repurchase treasury stock through market dealings always be protected as intellectual property.
as prescribed in Article 459-1 of the Corporate Law. Discretion to
pay cash dividends is determined by the Board of Directors and the Intellectual Property Rights
Ordinary General Meeting of Shareholders. In undertaking its business activities, Toyota Industries has acquired
numerous intellectual property rights, including those acquired
overseas, such as patents related to its products, product designs
and manufacturing methods. However, not all patents submitted will
Risk Information
necessarily be registered as rights, and these patents could thus be
The following represent risks that could have a material impact on rejected by patent authorities or invalidated by third parties. Also,
Toyota Industries’ financial condition, business results and share a third party could circumvent a patent of Toyota Industries and
prices. The risks mentioned in this annual report represent only a introduce a competing product into the market. Moreover, Toyota
portion of the risks that could have an impact on Toyota Industries’ Industries’ products utilize a wide range of technologies. Therefore,
financial condition and business results, and do not necessarily cover Toyota Industries could become a party subject to litigation involving
all possible risks. There is also a possibility that Toyota Industries the intellectual property rights of a third party.
could be affected in the future by risks currently unknown or not
considered noteworthy or significant. Product Defects
Guided by the basic philosophy of “offering products and services

that are clean, safe and of high quality,” Toyota Industries makes its Accordingly, any expenses necessary for continuous strict adherence
utmost efforts to enhance quality. However, Toyota Industries cannot to these environmental regulations could result in increased business
guarantee all its products will be defect-free and that product recalls costs and have an adverse impact on Toyota Industries’ financial
will not be made in the future. Toyota Industries is insured for product condition and business results.
liability indemnity. However, Toyota Industries cannot guarantee
that this insurance will sufficiently cover final indemnity amounts Alliances with Other Companies
incurred. Product defects that could lead to large-scale recalls Aiming to expand its businesses, Toyota Industries engages in joint
and product liability indemnities could result in large cost burdens activities with other companies through alliances and joint ventures.
and have a significant negative impact on the evaluation of Toyota However, a wildly fluctuating market trend or a disagreement between
Industries. It could also have an adverse effect on Toyota Industries’ Toyota Industries and its partners, owing to business, financial or
financial condition and business results due to a decrease in sales, other reasons, could prevent Toyota Industries from deriving the
deterioration of profitability and decrease in share prices of Toyota intended benefits of its alliances.
Industries.
Exchange Rate Fluctuations
Price Competition Toyota Industries’ businesses encompass the production and sales
Toyota Industries faces extremely harsh competition in each of the of products and the provision of services worldwide. Generally, the
industries in which it conducts business, including its Automobile strengthening of the yen against other currencies (especially against
and Materials Handling Equipment businesses, which are the core the U.S. dollar and the euro, which account for a significant portion of
of Toyota Industries’ earnings foundation. Toyota Industries believes Toyota Industries’ sales) has an adverse impact on Toyota Industries’
it offers high value-added products that are unrivalled in terms of business, while a weakening of the yen has a favorable impact. An
technology, quality and cost. Amid an environment characterized increase in the value of currencies in countries or regions where
by intensifying price competition, however, Toyota Industries may Toyota Industries carries out production could lead to an increase in
be unable to maintain or increase market share against low-cost local production, procurement and distribution costs. Such an increase
competitors or to maintain profitability. This could have an adverse in costs could reduce Toyota Industries’ price competitiveness.
impact on Toyota Industries’ financial condition and business results. Additionally, because export sales of several businesses are
denominated mainly in yen, exchange rate fluctuations could have an
Reliance on Suppliers of Raw Materials and adverse impact on Toyota Industries’ financial condition and business
Components results due to a change in market prices.
Toyota Industries’ products rely on various raw materials and
components from suppliers outside the Toyota Industries Group. Share Price Fluctuations
Toyota Industries has concluded basic business contracts with these Toyota Industries holds marketable securities, and therefore bears
external suppliers and assumes it can carry out stable transactions the risk of price fluctuation of these shares. Based on fair market
for raw materials and components. However, Toyota Industries value of these shares at the end of the fiscal year under review,
has no assurances against future shortages of raw materials and Toyota Industries had unrealized gains. However, unrealized gains on
components, which arise from a global shortage due to tight supply marketable securities could worsen depending on future share price
or an unforeseen accident involving a supplier. Such shortages could movements. Additionally, a fall in share prices could reduce the value
have a negative effect on Toyota Industries’ product production and of pension assets, leading to an increase in the pension shortfall.
cause an increase in costs, which could have an adverse impact on
Toyota Industries’ financial condition and business results. Effects of Disasters, Power Blackouts and
Other Incidents
Environmental Regulations Toyota Industries carries out regular checks and inspections of its
In view of its social responsibilities as a company, Toyota Industries production facilities to minimize the effect of production breakdown.
strives to reduce any burden on the environment resulting from However, there is no assurance Toyota Industries can completely
its production processes, as well as strictly adheres to applicable prevent or lessen the impact of man-made or natural disasters,
environmental laws and regulations. However, various environmental including malfunctions of production facilities, fires at production
regulations could also be revised and strengthened in the future. facilities and power blackouts. For example, the majority of Toyota

Industries’ domestic production facilities and most of its business for doubtful accounts involves judgments made in accordance
partners are situated in the Chubu region. Therefore, a major with the nature of the situation, and this allowance represents an
earthquake such as the Tokai Earthquake, or an incident that affects essential and crucial estimate—including future estimates of cash
other operations, could delay or stop production or shipment flow amounts and timing—that could change significantly. Based
activities. Such prolonged delays and stoppages could have an on currently available information, Toyota Industries’ management
adverse impact on Toyota Industries’ financial condition and business believes its present allowance for doubtful accounts is sufficient.
results. However, the need to significantly increase allowance for doubtful
accounts in the future could have an adverse impact on Toyota
Latent Risks Associated with Industries’ business results.
International Activities
Toyota Industries manufactures and sells products and provides Allowance for Retirement Benefits
services in various countries. Such unforeseen factors as social Calculations differ for retirement benefits, retirement benefit
chaos, including political disruptions, terrorism and wars, as well as expenses and liabilities after employee retirement, as well as
changes in economic conditions, could have an adverse impact on benefits for employees on leave of absence because different
Toyota Industries’ financial condition and business results. assumptions are used at the time of calculation. Assumptions
include such factors as discount rates, amount of benefits, interest
Retirement Benefit Liabilities expenses, expected rates of return on pension assets and mortality
Toyota Industries’ employee retirement benefit expenses and rates. The difference in amounts between these assumptions
liabilities are calculated based on expected rates of return on and actual results is calculated cumulatively and amortized over
pension assets as well as assumptions upon making actuarial future accounting periods, and thus becomes an expense and
calculations that incorporate discount rates and other factors. is recognized as a liability in future accounting periods. Toyota
Therefore, differences between actual results and assumptions Industries believes its assumptions are reasonable. However,
as well as changes in the assumptions could have a significant differences between actual results or changes in the assumptions
impact on recognized expenses and calculated liabilities in future could have an impact on retirement benefits and retirement benefit
accounting periods. expenses and liabilities after employee retirement.
Significant Accounting Policies and ,

Toyota Industries Relationship to Toyota
Estimates Motor Corporation
Toyota Industries’ financial statements are prepared in conformity Due to historical reasons, Toyota Industries maintains close
with accounting principles and practices generally accepted in relationships with TMC and Toyota Group companies in terms of
Japan. In preparing financial statements, management must make capital and business dealings.
estimates, judgments and assumptions that affect reported amounts
of assets and liabilities at fiscal year-end as well as revenues Historical Background
and expenses during each fiscal year. Among Toyota Industries’ In 1933, Kiichiro Toyoda, the eldest son of founder Sakichi Toyoda
significant accounting policies, the following categories require a and then Managing Director of Toyota Industries (then Toyoda
considerable degree of judgment and estimation and are highly Automatic Loom Works, Ltd.), established the Automobile Division
complex. within the Company based on his resolve to manufacture Japanese-
made automobiles. In 1937, the Automobile Division was spun off
Allowance for Doubtful Accounts and became an independent company, Toyota Motor Co., Ltd. (the
To prepare for the risk of receivables becoming uncollectible, Toyota present Toyota Motor Corporation).
Industries estimates its allowance for doubtful accounts by utilizing
the percentage of historical experiences in credit losses for ordinary Capital Relationship
receivables and individually examining the feasibility of collection for In light of this historical background, Toyota Industries and TMC
receivables that seem to be uncollectible. Evaluating the allowance have maintained a close capital relationship. As of March 31, 2007,

,
Toyota Industries held 5.5% (200,195 thousand shares) of TMC s
total shares issued. Likewise, as of the same date, TMC held 24.8%
of Toyota Industries, total voting rights. Toyota Industries is a TMC
affiliate accounted for by the equity method.
Business Relationship
Toyota Industries assembles certain cars and produces automobile
engines under consignment from TMC. Additionally, we sell a portion
of our other components and products directly or indirectly to other
Toyota Group companies. In fiscal 2007, our net sales to TMC
accounted for 35.5% of our consolidated net sales.
Contributions to the Toyota Group

As a member of the Toyota Group, Toyota Industries aims to
contribute to strengthening the competitiveness of TMC and other
Toyota Group companies in such areas as quality, cost, delivery and
technologies. Toyota Industries is confident that raising the Toyota
Group,s competitiveness will lead to increases in our sales to and
profits from the Toyota Group, thereby contributing to raising Toyota
Industries, corporate value.

Consolidated Balance Sheets
As of March 31, 2007 and 2006
Thousands of
Millions of yen U.S. dollars (Note 1)
ASSETS 2007 2006 2007

Current assets
Cash and cash equivalents ¥ 108,569 ¥ 112,596 $ 919,691
Trade notes and accounts receivable (Note 8) 234,611 200,690 1,987,390
Short-term investments 48 75 411
Inventories (Note 5) 120,737 104,534 1,022,767
Deferred tax assets (Note 16) 17,924 18,096 151,835
Other current assets 88,894 75,938 753,026
Less — allowance for doubtful accounts (2,784) (2,665) (23,588)
Total current assets 568,001 509,266 4,811,532

Fixed assets
Property, plant and equipment
Buildings and structures (Notes 6 and 8) 171,897 155,168 1,456,138
Machinery, equipment and vehicles (Note 6) 269,769 240,467 2,285,216
Tools, furniture and fixtures (Note 6) 26,081 22,310 220,936
Land (Note 8) 99,117 87,213 839,627
Construction in progress 39,056 20,994 330,846
Total property, plant and equipment 605,922 526,154 5,132,763

Intangible assets
Goodwill 101,102 97,485 856,435
Software 11,714 12,483 99,231
Total intangible assets 112,816 109,968 955,666

Investments and other assets
Investments in securities (Notes 4 and 8) 2,172,648 1,975,793 18,404,480
Investments in unconsolidated subsidiaries and affiliated companies 60,415 60,976 511,782
Long-term loans 8,460 8,591 71,672
Long-term prepaid expenses 11,603 11,358 98,297
Deferred tax assets (Note 16) 7,435 6,842 62,986
Other investments and other assets 38,784 36,625 328,544
Less — allowance for doubtful accounts (232) (237) (1,967)
Total investments and other assets 2,299,117 2,099,951 19,475,794

Total fixed assets 3,017,856 2,736,074 25,564,223
Total assets ¥3,585,857 ¥3,245,341 $30,375,755
The accompanying notes are an integral part of these financial statements.

Thousands of
LIABILITIES AND NET ASSETS 2007 2006 2007

Current liabilities
Trade notes and accounts payable ¥ 205,168 ¥ 182,595 $ 1,737,983
Short-term bank loans (Note 8) 37,103 38,928 314,301
Commercial paper 33,760 29,680 285,981
Current portion of bonds 60,000 15,000 508,259
Other payables 37,808 30,620 320,272
Accrued expenses 77,698 67,674 658,185
Accrued income taxes 25,854 13,625 219,013
Deposits received from employees 22,020 20,914 186,535
Deferred tax liabilities (Note 16) 3,162 3,857 26,788
Allowance for bonuses to directors and corporate auditors 554 – 4,697
Other current liabilities (Note 8) 55,275 43,221 468,235
Total current liabilities 558,405 446,118 4,730,249

Long-term liabilities
Bonds (Note 7) 250,761 283,831 2,124,195
Long-term bank loans (Notes 7 and 8) 141,567 106,267 1,199,214
Deferred tax liabilities (Note 16) 751,764 681,503 6,368,186
Allowance for retirement benefits (Note 14) 45,482 46,535 385,282
Other long-term liabilities 27,393 20,585 232,051
Total long-term liabilities 1,216,969 1,138,724 10,308,929

Total liabilities 1,775,374 1,584,842 15,039,178
Minority interests in consolidated subsidiaries – 49,270 –
Shareholders’ equity (Note 11)
Common stock:
Authorized — 1,100,000,000 shares
Issued — 325,840,640 shares as of March 31, 2007 80,462 80,462 681,598
325,840,640 shares as of March 31, 2006
Capital surplus 105,055 105,665 889,924
Retained earnings 402,431 358,385 3,408,994
Treasury stock at cost (47,253) (14,363) (400,282)
Total shareholders’ equity 540,696 530,150 4,580,234

Valuation and translation adjustments
Net unrealized gains or losses on other securities 1,157,793 1,047,190 9,807,649
Deferred gains or losses on hedges (0) – (6)
Foreign currency translation adjustments 52,912 33,886 448,221
Total valuation and translation adjustments 1,210,704 1,081,077 10,255,864

Subscription rights to shares 202 – 1,719
Minority interests in consolidated subsidiaries 58,878 – 498,761
Total net assets 1,810,483 1,611,227 15,336,578
Total liabilities and net assets ¥3,585,857 ¥3,245,341 $30,375,755

Consolidated Statements of Income
For the years ended March 31, 2007, 2006 and 2005
Thousands of
2007 2006 2005 2007

Net sales ¥1,878,398 ¥1,505,955 ¥1,241,538 $15,911,886
Cost of sales (Note 12) 1,586,781 1,276,499 1,041,780 13,441,606
Gross profit 291,616 229,456 199,758 2,470,280
Selling, general and administrative expenses (Notes 12 and 15)
Sales commissions 11,325 10,875 8,938 95,937
Salaries and allowances 74,360 58,382 50,984 629,908
Retirement benefit expenses 1,678 1,982 1,582 14,222
Depreciation 8,733 6,507 5,418 73,980
Research and development expenses 21,527 20,307 19,484 182,362
Other 84,036 67,361 60,228 711,868
Operating income 89,954 64,040 53,120 762,002
Non-operating income
Interest income 13,760 9,113 8,159 116,561
Dividends income 27,547 20,090 13,760 233,351
Gain on sales of marketable securities – 1,280 1,658 –
Rental income of fixed assets 2,389 2,110 1,931 20,238
Equity in net earnings of unconsolidated subsidiaries and 317 3,593 6,805 2,690
affiliated companies
Other non-operating income 6,868 7,665 5,967 58,185
Non-operating expenses
Interest expenses (17,855) (11,955) (9,735) (151,251)
Depreciation (1,932) (1,716) (2,381) (16,367)
Loss on disposal of fixed assets (3,567) (4,487) (2,380) (30,223)
Other non-operating expenses (8,997) (9,099) (5,994) (76,215)
Ordinary income 108,484 80,635 70,912 918,971
Extraordinary gains
Proceeds from sales of investment securities 4,305 – – 36,468
Extraordinary losses
Impairment loss of fixed assets – – (558) –
Losses of discontinuing production of designated electronic parts (4,390) – – (37,190)
Income before income taxes and minority interests 108,399 80,635 70,353 918,248
Income taxes — current (Note 16) 43,750 30,446 26,808 370,606
Income taxes — deferred (Note 16) (2,209) (2,137) (4,557) (18,721)
Minority interests in consolidated subsidiaries 7,390 5,249 4,744 62,607
Net income ¥ 59,468 ¥ 47,077 ¥ 43,357 $ 503,756
Yen U.S. dollars (Note 1)
Net income per share — basic (Note 22) ¥ 189.88 ¥ 146.16 ¥ 135.09 $ 1.61
Net income per share — diluted (Note 22) 189.66 146.02 135.03 1.61
Net assets per share (Note 23) 5,612.11 5,044.45 3,504.80 47.54
Cash dividends per share 50.00 38.00 32.00 0.42

Consolidated Statements of Changes in Net Assets
Millions of yen
Common stock Capital surplus Retained Treasury stock Net unrealized Deferred gains Foreign Subscription Minority
earnings at cost gains or losses or losses on currency rights to shares interests in
on other hedges translation consolidated
securities adjustments subsidiaries
Balance at March 31, 2004 ¥80,462 ¥105,743 ¥294,672 ¥(17,975) ¥ 534,078 ¥– ¥19,782 ¥ – ¥34,926
Dividens paid – – (7,948) – – – – – –
Bonuses to directors and corporate auditors – – (331) – – – – – –
Net income for the period – – 43,357 – – – – – –
Repurchase of treasury stock – – – (52) – – – – –
Exercise of stock options – (142) – 1,301 – – – – –
Effect of adoption of a new accounting
standards for retirement benefits
by foreign subsidiaries – – (4,419) – – – – – –
Change to items other than shareholders’
equity during accounting period – – – – 57,139 – 10,078 – 5,977
Balance at March 31, 2005 80,462 105,600 325,330 (16,726) 591,218 – 29,861 – 40,904
Dividens paid – – (11,793) – – – – – –
Decrease due to increase in affiliates
accounted for under the equity method – – (1,821) – – – – – –
Repurchase of treasury stock – – – (52) – – – – –
Exercise of stock options – 65 – 2,415 – – – – –
equity during accounting period – – – – 455,972 – 4,024 – 8,366
Balance at March 31, 2006 80,462 105,665 358,385 (14,363) 1,047,190 – 33,886 – 49,270
Dividens paid – – (6,386) – – – – – –
Interim dividends paid – – (6,864) – – – – – –
Decrease due to decrease
in consolidated subsidiaries – – (71) – – – – – –
Repurchase of treasury stock – – – (35,524) – – – – –
Exercise of stock options – (610) – 2,634 – – – – –
equity during accounting period – – – – 110,602 (0) 19,026 202 9,607
Balance at March 31, 2007 ¥80,462 ¥105,055 ¥402,431 ¥(47,253) ¥1,157,793 ¥(0) ¥52,912 ¥202 ¥58,878
Thousands of U.S. dollars (Note 1)

Common stock Capital surplus Retained Treasury stock Net unrealized Deferred gains Foreign Subscription Minority
earnings at cost gains or losses or losses on currency rights to shares interests in
on other hedges translation consolidated
securities adjustments subsidiaries
Balance at March 31, 2006 $681,598 $895,092 $3,035,882 $(121,677) $8,870,741 $– $287,051 $ – $417,373
Dividens paid – – (54,098) – – – – – –
Interim dividends paid – – (58,149) – – – – – –
Bonuses to directors and corporate auditors – – (3,619) – – – – – –
Decrease due to decrease
in consolidated subsidiaries – – (604) – – – – – –
Repurchase of treasury stock – – – (300,926) – – – – –
Exercise of stock options – (5,168) – 22,321 – – – – –
equity during accounting period – – – – 936,909 (6) 161,170 1,719 81,387
Balance at March 31, 2007 $681,598 $889,924 $3,408,994 $(400,282) $9,807,649 $(6) $448,221 $1,719 $498,761

Consolidated Statements of Cash Flows
Thousands of
2007 2006 2005 2007

Cash flows from operating activities
Income before income taxes and minority interests ¥ 108,399 ¥ 80,635 ¥ 70,353 $ 918,248
Adjustments to reconcile income before income taxes and
minority interests to net cash provided by operating activities:
Depreciation and amortization 106,060 87,287 70,213 898,433
Impairment loss of fixed assets – – 558 –
Increase (decrease) in allowance for doubtful accounts (250) 101 371 (2,118)
Interest and dividends income (41,307) (29,204) (21,920) (349,912)
Interest expenses 17,855 11,955 9,735 151,251
Equity in net earnings of unconsolidated subsidiaries and affiliated companies (317) (3,593) (6,805) (2,690)
(Increase) decrease in receivables (25,836) (27,435) (22,923) (218,861)
(Increase) decrease in inventories (9,221) (9,227) (12,851) (78,117)
Increase (decrease) in payables 15,022 21,376 26,893 127,258
Others, net 17,238 12,161 (4,063) 146,027
Subtotal 187,642 144,055 109,561 1,589,520
Interest and dividends income received 41,294 29,236 21,971 349,808
Interest expenses paid (17,777) (11,009) (8,710) (150,591)
Income taxes paid (33,692) (30,498) (22,727) (285,409)
Net cash provided by operating activities 177,467 131,784 100,095 1,503,328
Cash flows from investing activities
Payments for purchases of property, plant and equipment (155,550) (161,504) (110,111) (1,317,670)
Proceeds from sales of property, plant and equipment 7,624 8,415 10,043 64,590
Payments for purchases of investment securities (17,604) (47,726) (9,562) (149,129)
Proceeds from sales of investment securities 8,419 2,045 3,299 71,321
Payments for acquisition of subsidiaries’ stock resulting in (1,939) – (16,943) (16,426)
change in scope of consolidation
Payments for loans made (3,172) (2,256) (2,370) (26,870)
Proceeds from collections of loans 4,490 3,264 2,783 38,038
Others, net (6,714) (7,250) (5,368) (56,875)
Net cash used in investing activities (164,446) (205,013) (128,230) (1,393,021)
Cash flows from financing activities
Increase (decrease) in short-term loans (12,434) (22,902) (13,686) (105,328)
Increase (decrease) in commercial paper – 29,520 (15,000) –
Proceeds from long-term loans 40,004 38,824 40,785 338,880
Repayments of long-term loans (14,020) (3,365) (6,964) (118,765)
Proceeds from issuances of bonds 25,107 68,730 50,000 212,687
Repayments of bonds (15,980) (20,300) – (135,372)
Payments for repurchase of treasury stock (35,524) (52) (52) (300,926)
Cash dividends paid (13,250) (11,784) (7,948) (112,247)
Cash dividends paid to minority shareholders (1,039) (854) (667) (8,809)
Others, net 7,388 7,357 3,554 62,584
Net cash provided by (used in) financing activities (19,749) 85,172 50,020 (167,295)
Translation adjustments of cash and cash equivalents 2,700 117 1,438 22,875
Net increase (decrease) in cash and cash equivalents (4,027) 12,060 23,323 (34,113)
Cash and cash equivalents at beginning of year 112,596 100,535 77,212 953,805
Cash and cash equivalents at end of year ¥108,569 ¥112,596 ¥100,535 $ 919,691

Notes to Consolidated Financial Statements
1. Basis of presenting consolidated financial statements
The accompanying consolidated financial statements have been statements submitted to the Director of Kanto Finance Bureau
prepared based on the accounts maintained by Toyota Industries in Japan have been reclassified in these accounts for the
Corporation (the “Company”), and its consolidated subsidiaries convenience of readers outside Japan.
(together, hereinafter referred to as “Toyota Industries”) in Amounts in U.S. dollars are included solely for the convenience
accordance with the provisions set forth in the Corporate Law of of readers outside Japan. The rate of ¥118.05=US$1, the
Japan and the Securities and Exchange Law, and in conformity approximate rate of exchange prevailing at March 31, 2007, has
with accounting principles generally accepted in Japan, which are been used in translation. The inclusion of such amounts are not
different in certain respects from the application and disclosure intended to imply that the Japanese yen actually represent, or
requirements of International Financial Reporting Standards. have been or could be converted into, equivalent amounts in U.S.
Certain items presented in the consolidated financial dollars at this rate or any other rates.
2. Summary of significant accounting policies

(1) Consolidation statements of the unconsolidated subsidiaries and affiliates
The consolidated financial statements include the accounts of accounted for by the equity method for their respective fiscal years.
the Company and its 162 subsidiaries (45 domestic subsidiaries All significant intercompany transactions, balances and
and 117 overseas subsidiaries) and 21 affiliates (which are listed unrealized profits within Toyota Industries have been eliminated.
on pages 50 and 51) in 2007, 153 subsidiaries (43 domestic A full portion of the assets and liabilities of the acquired
subsidiaries and 110 overseas subsidiaries) and 22 affiliates in subsidiaries is stated at fair value as of the date of acquisition of
2006 and 146 subsidiaries (43 domestic subsidiaries and 103 control.
overseas subsidiaries) and 20 affiliates in 2005. In the year ended March 31, 2007, Toyota Industries Sweden
For the year ended March 31, 2007, 12 subsidiaries were AB and its consolidated subsidiaries have decided to change
newly added to the scope of consolidation and three companies their fiscal year-end from December 31 to March 31. As a result,
were excluded from the scope of consolidation because of the Company’s consolidated financial statements include 15
mergers and acquisitions. One affiliate was newly added to months of their operating results.
the scope of equity-method accounting and two affiliates were
excluded from the scope of equity-method accounting and (2) Investments in unconsolidated subsidiaries
added to the scope of consolidation . and affiliates
For the year ended March 31, 2006, nine subsidiaries were Investments in 21 major affiliates in 2007, 22 major affiliates in
newly added to the scope of consolidation and two companies 2006 and 20 major affiliates in 2005 are accounted for by the
were excluded from the scope of consolidation because of equity method of accounting. Investments in unconsolidated
mergers and acquisitions. Two affiliates were newly added to the subsidiaries and affiliates not accounted for by the equity
scope of equity-method accounting. method are stated at cost due to their insignificant effect on the
For the year ended March 31, 2005, 11 subsidiaries were consolidated financial statements.
newly added to the scope of consolidation and six companies The major affiliates accounted for by the equity method are
were excluded from the scope of consolidation because of listed on page 51.
mergers and acquisitions.
Some of the affiliates are not accounted for under the equity (3) Translation of foreign currencies
method since their net income/losses, retained earnings and Foreign currency denominated receivables and payables are
other financial amounts are immaterial. translated into Japanese yen at the year-end exchange rates
The fiscal years of certain subsidiaries are different from the and the resulting transaction gains or losses are included in
fiscal year of the Company. Since the difference is not more consolidated statements of income.
than three months, the Company is using those subsidiaries’ All asset and liability accounts of foreign subsidiaries and
statements for those fiscal years, making adjustments for affiliates are translated into Japanese yen at year-end exchange
significant transactions that materially affect the financial position rates and all revenue and expense accounts are translated at
or results of operations. prevailing fiscal average rates.
The fiscal years of certain unconsolidated subsidiaries and
affiliates accounted for by the equity method are different from the (4) Cash and cash equivalents
fiscal year of the Company. The Company is using the financial Cash and cash equivalents include all highly liquid investments,

generally with original maturities of three months or less, that are grouping of assets and recoverable value, with due consideration
readily convertible to known amounts of cash and are so near for the specific conditions of each company.
maturity that they present insignificant risk of changes in value The recoverable amount of assets is calculated based on net
because of changes in interest rates. selling price. The change in accounting policy is described in
Note 3.
(5) Marketable securities and investment in
securities (10) Allowances for doubtful accounts
Toyota Industries classifies securities into four categories by Toyota Industries adopted the policy of providing an allowance for
purpose of holding: trading securities, held-to-maturity securities, doubtful accounts in an amount sufficient to cover possible losses
other securities and investments in unconsolidated subsidiaries on collection by estimating individually uncollectible amounts and
and affiliates. Toyota Industries did not have trading securities or applying to the remaining accounts a percentage determined by
held-to-maturity securities as of March 31, 2007 and 2006. certain factors such as historical collection experiences.
Other securities with readily determinable fair values are
stated at fair value based on market prices at the end of the (11) Deferred charges
year. Unrealized gains and losses are included in “Net unrealized Stock issuance costs and bond issuance costs are expensed as
gains or losses on other securities” as a separate component incurred.
of net assets. Cost of sales of such securities is determined by
the moving-average method. Other securities without readily (12) Allowance for bonuses to directors and
determinable fair values are stated at cost, as determined by the corporate auditors
moving-average method. Bonuses to directors and corporate auditors are recorded on the
Investments in unconsolidated subsidiaries and affiliates are accrual basis with a related charge to income.
accounted for by the equity method (see Note 2 (2)).
(13) Allowance for retirement benefits
(6) Inventories Toyota Industries accrues an amount which is considered to be
Inventories are stated mainly at cost determined by the moving- incurred in the period based on the estimated projected benefit
average method. obligations and estimated pension assets at the end of the year.
To provide for the retirement benefits for directors and corporate
(7) Property, plant and equipment, and auditors, an amount which is calculated at the end of the year as
depreciation required by an internal policy describing the retirement benefits
Property, plant and equipment are stated at cost. Depreciation for directors and corporate auditors is accrued.
expenses of property, plant and equipment are computed
mainly by the declining-balance method for the Company and (14) Lease transactions
Japanese subsidiaries and by the straight-line method for foreign Finance leases other than those that are deemed to transfer
subsidiaries. the ownership of the leased assets to lessees are accounted
Significant renewals and additions are capitalized at cost. for mainly by a method similar to that applicable to ordinary
Repairs and maintenance are charged to income as incurred. operating leases.
Accumulated depreciation as of March 31, 2007 and 2006
was ¥651,651 million (US$5,520,147 thousand) and ¥585,994 (15) Consumption tax
million, respectively. The consumption tax under the Japanese Consumption Tax Law
withheld by Toyota Industries on sales of goods is not included
(8) Intangible assets and amortization in the amount of net sales in the accompanying consolidated
Amortization of intangible assets is computed using the straight- statements of income, and the consumption tax paid by Toyota
line method. Software costs for internal use are amortized by the Industries under the law on purchases of goods and services,
straight-line method over their expected useful lives (mainly five and expenses is not included in the related amount.
years).
Goodwill, if material, is amortized principally over less than (16) Hedge accounting
20 years on a straight-line basis, while immaterial goodwill is (a) Method of hedge accounting
charged to income as incurred. Mainly the deferral method of hedge accounting is applied. In the
Accumulated amortization of intangibles and goodwill as of case of foreign currency forward contracts and foreign currency
March 31, 2007 and 2006 was ¥70,124 million (US$594,023 option contracts, the hedged items are translated at contracted
thousand) and ¥53,552 million, respectively. forward rates if certain conditions are met.
(b) Hedging instruments and hedged items
(9) Impairment of fixed assets Hedging instruments: Derivatives instruments (interest rate
Calculation of the impairment of fixed assets is based on swaps, foreign currency forwards and
reasonable and supportable assumptions and projection of the foreign currency option contracts)

Hedged items: Risk of change in interest rate on (17) Income taxes
borrowings and risk of change in The provision for income taxes is computed based on the pretax
forward exchange rate on transactions income included in the consolidated statements of income. The
denominated in foreign currencies asset and liability approach is used to recognize deferred tax
(assets and liabilities, and forecasted liabilities and assets for the expected future tax consequences of
transactions) temporary differences between the carrying amounts and the tax
(c) Hedging policy bases of assets and liabilities.
Hedging transactions are executed and controlled based on Valuation allowances are recorded to reduce deferred tax
Toyota Industries’ internal policy and Toyota Industries is hedging assets when it is more likely than not that a tax benefit will not be
interest rate risks and foreign currency risks. Toyota Industries’ realized.
hedging activities are reported periodically to a director
responsible for accounting. (18) Net income per share
(d) Method used to measure hedge effectiveness The computation of basic net income per share is based on the
Hedge effectiveness is measured by comparing accumulated weighted-average number of outstanding shares of common
changes in market prices of hedged items and hedging stock. The calculation of diluted net income per share is similar
instruments or accumulated changes in estimated cash flows to the calculation of basic net income per share, except that the
from the inception of the hedge to the date of measurements weighted-average number of shares outstanding includes the
performed. Currently it is considered that there are high additional dilution from potential common stock equivalents such
correlations between them. as subscription rights to shares. Cash dividends per share shown
(e) Others in the statements of income are the amounts applicable to the
Due to the fact that counterparties to Toyota Industries represent respective years.
major financial institutions which have high creditworthiness,
Toyota Industries believes that the overall credit risk related to its
financial instruments is insignificant.
3. Change in accounting policy and adoption of new accounting standards

For the year ended March 31, 2007 As a result, ordinary income and income before income taxes
Accounting Standard for Directors’ Bonus and minority interests decreased by ¥202 million (US$1,719
Effective from the fiscal year beginning April 1, 2006, Toyota thousand).
Industries applied Financial Accounting Standard No. 4 Accounting Standard for Business Combinations
“Accounting Standard for Directors’ Bonus” issued on November Effective from the fiscal year beginning April 1, 2006, Toyota
29, 2005 by the Accounting Standards Board of Japan. As Industries applied Financial Accounting Standard for Business
a result, ordinary income and income before income taxes Combinations issued on October 31, 2003 by the Business
and minority interests decreased by ¥554 million (US$4,697 Accounting Council in Japan, and Financial Accounting Standard
thousand). No. 7 “Accounting Standard for Business Divestitures” and
Accounting Standards for Presentation of Net Assets in the related Implementation Guidance No. 10 “Guidance on
the Balance Sheet Accounting Standard for Business Combinations and Accounting
Effective from the fiscal year beginning April 1, 2006, Toyota Standard for Business Divestitures” issued on December 27,
Industries applied Financial Accounting Standard No. 5 2005 by the Accounting Standards Board of Japan.
“Accounting Standards for Presentation of Net Assets in the
Balance Sheet” and its Implementation Guidance No. 8 “Guidance For the year ended March 31, 2005
on Accounting Standards for Presentation of Net Assets in the Impairment of fixed assets
Balance Sheet” issued on December 9, 2005 by the Accounting Toyota Industries has applied Accounting Standards for
Standards Board of Japan. If the previous accounting policy had Impairment of Fixed Assets (Opinions Concerning Establishment
been applied, net assets at March 31, 2007 would have been of Accounting Standards for Impairment of Fixed Assets) issued
¥1,751,402 million (US$14,836,104 thousands). on August 9, 2002 by the Business Accounting Council in Japan,
Accounting Standard for Share-Based Payment and the application guideline for Accounting Standards for
Effective from the fiscal year beginning April 1, 2006, Toyota Impairment of Fixed Assets (the Financial Accounting Standard
Industries applied Financial Accounting Standard No. 8 Implementation Guideline No. 6 issued on October 31, 2003),
“Accounting Standard for Share-based Payment” issued on to the consolidated financial statements for fiscal 2005, as early
December 27, 2005 by the Accounting Standards Board of adoption of such standards and guidelines, which are effective for
Japan, and its Implementation Guidance No. 11 “Guidance fiscal years beginning on and after April 1, 2005, was permitted
on Accounting Standard for Share-based Payment” issued on for the consolidated accounting for the fiscal year ended March
May 31, 2006 by the Accounting Standards Board of Japan. 31, 2005.

4. Marketable securities
(1) As of and for the year ended March 31, 2007:
(a) Other securities with readily determinable fair value as of March 31, 2007 are as follows:
Millions of yen Thousands of U.S. dollars
Acquisition Carrying Acquisition Carrying

cost amount Difference cost amount Difference
Securities with carrying amount

exceeding acquisition cost:
Stocks ¥223,782 ¥2,152,078 ¥1,928,296 $1,895,659 $18,230,233 $16,334,574
Subtotal 223,782 2,152,078 1,928,296 1,895,659 18,230,233 16,334,574
Securities with carrying amount
not exceeding acquisition cost:
Stocks 3,716 2,910 (806) 31,484 24,654 (6,831)
Subtotal 3,716 2,910 (806) 31,484 24,654 (6,831)
Total ¥227,499 ¥2,154,989 ¥1,927,490 $1,927,143 $18,254,887 $16,327,744
(b) Other securities sold during the year ended March 31, 2007 are as follows:
Millions of yen Thousands of U.S. dollars
Proceeds Realized gains Realized losses Proceeds Realized gains Realized losses
¥8,419 ¥4,305 – $71,321 $36,468 –
(c) The carrying amount of securities (excluding held-to-maturity bonds which are included within securities with fair value) without readily
determinable fair values as of March 31, 2007 are as follows:
Carrying amount
Thousands of
Other securities
Domestic unlisted stocks excluding over-the-counter stocks ¥17,659 $149,594
Money management funds 30,065 254,687
(2) As of and for the year ended March 31, 2006:

(a) Other securities with readily determinable fair value as of March 31, 2006 are as follows:
Millions of yen
Acquisition Carrying
cost amount Difference
Securities with carrying amount exceeding acquisition cost:

Stocks ¥212,297 ¥1,956,653 ¥1,744,356
Subtotal 212,297 1,956,653 1,744,356
Securities with carrying amount not exceeding acquisition cost:
Stocks 1,808 1,339 (469)
Subtotal 1,808 1,339 (469)
Total ¥214,105 ¥1,957,992 ¥1,743,887
(b) Other securities sold during the year ended March 31, 2006 are as follows:
Millions of yen
Proceeds Realized gains Realized losses
¥2,516 ¥1,280 ¥1

(c) The carrying amount of securities (excluding held-to-maturity bonds which are included within securities with fair value) without readily
determinable fair values as of March 31, 2006 are as follows:
Carrying amount
Millions of yen
Other securities
Domestic unlisted stocks excluding over-the-counter stocks ¥17,800
Money management funds 45,002
(d) Redemption schedule of securities which have maturities within other securities as of March 31, 2006 is as follows:
Millions of yen
Over 1 year Over 5 years

Within within within Over
1 year 5 years 10 years 10 years
Bonds
Government bonds ¥0 – – –
Total ¥0 ¥– ¥– ¥–
5. Inventories
Inventories as of March 31, 2007 and 2006 consist of the following:
Thousands of
2007 2006 2007

Finished goods ¥ 51,144 ¥ 40,702 $ 433,247
Raw materials 20,325 16,097 172,174
Work in process 37,841 37,089 320,554
Supplies 11,426 10,645 96,792
Total ¥120,737 ¥104,534 $1,022,767
6. Property, plant and equipment

Accumulated depreciation as of March 31, 2007 and 2006 is as follows:
Thousands of
2007 2006 2007

Buildings and structures ¥146,690 ¥132,151 $1,242,616
Machinery, equipment and vehicles 437,123 393,307 3,702,870
Tools, furniture and fixtures 67,838 60,536 574,661

7. Long-term debt
(1) Long-term debt as of March 31, 2007 and 2006 consists of the following:
Thousands of
2007 2006 2007

The Company:
2.70% bonds due 2008 without collateral ¥ 30,000 ¥ 30,000 $ 254,130
2.15% bonds due 2008 without collateral 20,000 20,000 169,420
1.50% bonds due 2006 without collateral – 15,000 –
Consolidated subsidiaries:
0.49-3.24% medium-term notes due 2009-2010 25,770 18,831 218,304
1.95% bonds due 2016 without collateral 19,990 – 169,336
Long-term bank loans 145,940 109,268 1,236,257
Less: current portion of long-term debt (64,372) (18,000) (545,302)
Total ¥392,328 ¥390,100 $3,323,409
(2) Annual maturities of long-term debt as of March 31, 2007 are as follows:
Thousands of
Year ending March 31 Millions of yen U.S. dollars
2008 ¥ 64,372 $ 545,302

2009 29,299 248,198
2010 32,885 278,576
2011 61,185 518,303
2012 37,907 321,112
2013 and thereafter 231,049 1,957,220
Total ¥456,701 $3,868,711
8. Assets pledged as collateral

(1) Assets pledged as collateral as of March 31, 2007 and 2006 are as follows:
Thousands of
2007 2006 2007

Investments in securities ¥56,710 ¥57,035 $480,390
Land 1,989 2,952 16,851
Buildings and structures 1,160 1,798 9,830
Trade notes and accounts receivable – 244 –
Total ¥59,859 ¥62,031 $507,071

(2) Secured liabilities as of March 31, 2007 and 2006 are as follows:
Thousands of
2007 2006 2007

Other current liabilities ¥21,736 ¥20,805 $184,133
Short-term bank loans 138 363 1,175
Long-term bank loans 67 155 568
Total ¥21,942 ¥21,324 $185,876
9. Contingent liabilities
Toyota Industries is contingently liable for guarantees as of March 31, 2007 and 2006 as follows:
Thousands of
2007 2006 2007

Guarantees given by the Company ¥4,200 ¥1,000 $35,578
Guarantees given by consolidated subsidiaries 455 1,179 3,862
Guarantee forwards given by the Company 473 543 4,007
10. Export discount bills

Export discount bills as of March 31, 2007 and 2006 are as follows:
Thousands of
2007 2006 2007

Export discount bills ¥443 ¥395 $3,761
11. Net assets

Under the Japanese Corporate Law, amounts equal to 10% of close of the fiscal year to which the dividend is applicable. In
the sum of the cash dividends and other external appropriations addition, interim cash dividends may be paid upon resolution
paid by the Company and its domestic subsidiaries must be set of the Board of Directors, subject to limitations imposed by the
aside as a legal reserve until it equals 25% of common stock. Japanese Corporate Law.
The legal reserve may be used to reduce a deficit or may be Proceeds from the conversion of convertible bonds have
transferred to common stock by taking appropriate corporate been accounted for in approximately equal amounts as common
action. In consolidation, the legal reserves of the Company and stock and capital surplus. At least 50% of the proceeds have
its domestic subsidiaries are accounted for as retained earnings. been accounted for as common stock, in accordance with the
The year-end cash dividend is approved at the Ordinary provisions of the Japanese Corporate Law.
General Meeting of Shareholders of the Company held after the
12. Research and development expenses

Research and development expenses, which are included in ¥31,166 million and ¥30,051 million for the years ended March
selling, general and administrative expenses and manufacturing 31, 2007, 2006 and 2005, respectively.
costs, amounted to ¥34,548 million (US$292,657 thousand),

13. Derivative instruments
(1) Qualitative disclosure about derivatives that counterparties to Toyota Industries represent major
(a) Contents of derivative instruments into which Toyota financial institutions which have high creditworthiness,
Industries entered, policy with respect to entering into Toyota Industries believes that the overall credit risk related
derivative instruments, and purpose of using derivative to its financial instruments is insignificant.
instruments: (c) Controls in place over transactions handling derivative
Toyota Industries uses interest rate swap agreements to instruments:
reduce interest rate risks on borrowings. Toyota Industries Hedging transactions are executed and controlled based
also uses foreign currency forward contracts and foreign on Toyota Industries’ internal policy and Toyota Industries’
currency option contracts to hedge foreign currency hedging activities are reported periodically to a director
risks on transactions denominated in foreign currencies responsible for accounting.
(receivables and payables and forecasted transactions).
(b) Contents of risks related to derivative instruments: (2) Quantitative disclosure about derivatives
Interest rate swaps, foreign currency forward contracts Toyota Industries omitted this information because hedge
and foreign currency option contracts into which Toyota accounting is applied to all of the derivative instruments into
Industries entered have risks of fluctuations in interest rates which Toyota Industries entered.
and in foreign currency exchange rates. Due to the fact
14. Retirement benefits

(1) Outline of retirement benefit plans of its pension plan from its lump-sum indemnities plan to its
The Company and its domestic subsidiaries maintain tax-qualified tax-qualified pension plan. As of March 31, 2007 and 2006, its
pension plans, lump-sum indemnities plans and welfare pension tax-qualified pension plan covers 50% of total plans. Also, the
fund plans, all of which are non-contributory defined benefit Company established an employee retirement benefit trust. In
pension plans. In addition, certain foreign subsidiaries maintain April 2003, the Company transferred a portion of the lump-sum
non-contributory defined benefit pension plans. Since 1987, indemnities plan to a defined contribution pension plan.
the Company has been transferring the covering percentages
(2) Components of allowance for retirement benefits as of March 31, 2007 and 2006 are as follows:
Thousands of
2007 2006 2007

Benefit obligation ¥150,203 ¥138,808 $1,272,368
Plan assets (118,227) (105,552) (1,001,503)
Unfunded benefit obligation 31,975 33,256 270,866
Unrecognized actuarial gains or losses 2,907 2,443 24,630
Unrecognized loss in prior service obligation (331) (614) (2,805)
Net amount recognized on the balance sheets 34,552 35,085 292,691
Prepaid pension expenses (6,212) (6,006) (52,628)
Allowance for retirement benefits ¥ 40,764 ¥ 41,092 $ 345,319
Certain subsidiaries use the simplified method to determine benefit obligations. Prepaid pension expenses are included in other
investments and other assets. Allowance for retirement benefits on the consolidated balance sheets includes ¥4,717 million (US$39,963
thousand) and ¥5,443 million of allowance for retirement and severance benefits for directors and corporate auditors as of March 31,
2007 and 2006, respectively.

(3) Components of retirement benefit expenses for the years ended March 31, 2007, 2006 and 2005 are as follows:
Thousands of
2007 2006 2005 2007

Service cost ¥ 9,171 ¥ 7,921 ¥ 7,445 $77,688
Interest cost 5,036 4,079 3,986 42,663
Expected return on plan assets (3,573) (2,435) (2,196) (30,272)
Amortization of prior service obligation 398 94 85 3,372
Amortization of unrecognized actuarial gains or losses (153) 778 1,030 (1,296)
Retirement benefit expenses ¥10,878 ¥10,438 ¥10,351 $92,155
Retirement expenses of subsidiaries which adopted the simplified method are included in service cost.
(4) Assumptions used for calculation of retirement benefits for the years ended March 31, 2007, 2006 and 2005 are as follows:
2007 2006 2005
Method of attribution of estimated retirement benefits
to periods of employee service: Straight-line method
Discount rate 2.00% 2.00% 2.00%
Expected return on plan assets 3.00% 3.00% 3.00%
Amortization period of prior service obligation 6–11 years 6–11 years 6–11 years — Straight-line method over
the remaining service
period of employees
Amortization period of unrecognized actuarial gains 20 years 20 years 20 years — Straight-line method over
or losses the average remaining
service period of
employees starting from
the following year
(5) Plan assets relating to welfare pension fund under multiemployer pension plan:
Amounts of plan assets calculated based on proportion of contribution to the fund made by each domestic subsidiary are ¥12,473 million
(US$105,659 thousand) and ¥11,213 million as of March 31, 2007 and 2006, respectively.

15. Stock options
(1) Stock option expenses recorded in the fiscal year and class of options
Thousands of
Selling, general and administrative expenses ¥202 $1,719
(2) Stock option details, number of stock options and state of fluctuation
(a) Stock option details
2007 2006 2005
Company name The Company The Company The Company
Position and number of Directors: 17 Directors: 30 Directors: 30
grantees Managing officers and employees: 152 Employees: 134 Employees: 135
Class and number of 802,000 shares of common stock 791,000 shares of common stock 775,000 shares of common stock
shares*
Date of issue August 1, 2006 August 1, 2005 August 2, 2004
1. Grantee must be employed as a
director, managing officer or regular
employee of the Company at the time
of exercise. However, this does not
apply if no more than 18 months have
elapsed after retirement or resignation
from the Company.
Vesting condition 2. Other conditions of exercise shall be Same as left Same as left
decided as prescribed by the Contract
for Allotment of Stock Acquisition
Rights concluded by the Company and
grantee in accordance with resolutions
at the Ordinary General Meeting of
Shareholders and resolutions on the
issue of stock acquisition rights by the
Board of Directors.
Service period From August 1, 2006 to July 31, 2008 From August 1, 2005 to June 30, 2007 From August 2, 2004 to June 30, 2006
Exercise period From August 1, 2008 to July 31, 2012 From July 1, 2007 to June 30, 2011 From July 1, 2006 to June 30, 2010
2004 2003
Company name The Company The Company
Position and number of Directors: 30 Directors: 30
grantees Employees: 128 Employees: 115
Class and number of 750,000 shares of common stock 728,000 shares of common stock
shares*
Date of issue August 1, 2003 August 1, 2002
1. Grantee must be employed as a 1. Grantee must be employed as a
director, managing officer or regular director, managing officer or regular
employee of the Company at the time employee of the Company at the time
of exercise. However, this does not of exercise. However, this does not
apply if no more than 18 months have apply if no more than six months have
elapsed after retirement or resignation elapsed after retirement or resignation
from the Company. from the Company.
Vesting condition 2. Other conditions of exercise shall be 2. Other conditions of exercise shall be
decided as prescribed by the Contract decided as prescribed by the Contract
for Allotment of Stock Acquisition for Allotment of Stock Acquisition
Rights concluded by the Company and Rights concluded by the Company and
grantee in accordance with resolutions grantee in accordance with resolutions
at the Ordinary General Meeting of at the Ordinary General Meeting of
Shareholders and resolutions on the Shareholders and resolutions on the
issue of stock acquisition rights by the issue of stock acquisition rights by the
Board of Directors. Board of Directors.
Service period From August 1, 2003 to June 30, 2005 From August 1, 2002 to June 30, 2004
Exercise period From July 1, 2005 to June 30, 2009 From July 1, 2004 to June 30, 2008
* Number of options granted by class are listed as number of shares.

(b) Number of stock options and state of fluctuation
Stock options are those outstanding in the fiscal year and are listed as the number of shares.
(i) Number of stock options
Non-exercisable stock options
2007 2006 2005 2004 2003
Stock options outstanding at the end of the previous fiscal year – 791,000 775,000 – –
Stock options granted 802,000 – – – –
Forfeitures – – – – –
Conversion to exercisable stock options – – 775,000 – –
Stock options outstanding at the end of the fiscal year 802,000 791,000 – – –
Exercisable stock options

2007 2006 2005 2004 2003
Stock options outstanding at the end of the previous fiscal year – – – 31,000 118,000
Conversion from non-exercisable stock options – – 775,000 – –
Stock options exercised – – 736,500 25,000 10,000
Forfeitures – – – – –
Stock options outstanding at the end of the fiscal year – – 38,500 6,000 108,000
(ii) Price of options

Exact yen amounts
2007 2006 2005 2004 2003

Exercise price ¥4,642 ¥3,306 ¥2,652 ¥2,074 ¥1,982
Average market price of the stock at the time of exercise – – ¥4,467 ¥5,467 ¥5,218
Fair value of options on grant date 759 – – – –
(3) Method for estimating fair value of stock options

The method for estimating fair value of stock options granted for fiscal 2007 is as follows:
(a) Valuation method used: Black-Scholes model
(b) Principal basic values and estimation methods
2007
*1
Share price fluctuations 20.63%
Projected remaining period *2 4 years
*3
Projected dividend ¥40/share
*4
Non-risk interest rate 1.21%
*1 Computed based on actual share prices during a four-year period (from August 2002 to July 2006).
*2 Because of a lack of accumulated data and difficulty in making rational estimates, it is assumed the rights
are excercised at the midpoint of the exercise period.
*3 Based on the year-end dividend for the fiscal year ended March 31, 2006 and the estimated interim
dividend on the grant date.
*4 Yields on government bonds for the period corresponding to the projected remaining period.
(4) Method for estimating the number of confirmed stock option rights
Specifically, because of the difficulty in rationally estimating the number of expired rights in the future, a method has been adopted that
reflects actual past expirations.

16. Income taxes
(1) The significant components of deferred tax assets and liabilities as of March 31, 2007 and 2006 are as follows:
Thousands of
2007 2006 2007

Deferred tax assets:
Allowance for retirement benefits ¥ 15,347 ¥ 15,560 $ 130,010
Trade receivables 2,464 2,867 20,880
Accrued expenses 7,465 6,739 63,244
Net operating loss carry-forwards for tax purposes 2,039 2,012 17,274
Depreciation 6,350 4,538 53,794
Securities 2,066 2,528 17,504
Enterprise tax payable 1,692 1,045 14,336
Other 12,741 14,119 107,931
Subtotal 50,168 49,410 424,974
Less: valuation allowance (2,742) (2,705) (23,232)
Total deferred tax assets 47,425 46,705 401,742
Deferred tax liabilities:
Other securities 768,659 695,354 6,511,303
Depreciation 6,155 6,004 52,147
Land 1,111 1,111 9,419
Reserve for advanced depreciation 502 519 4,256
Reserve for special depreciation 590 678 5,001
Other (26) 3,459 (228)
Total deferred tax liabilities 776,992 707,128 6,581,896
Net deferred tax liabilities ¥(729,567) ¥(660,423) $(6,180,154)
Net deferred tax liabilities consist of the following components on the consolidated balance sheets.
Thousands of
2007 2006 2007

Current assets — deferred tax assets ¥ 17,924 ¥ 18,096 $ 151,835
Investments and other assets — deferred tax assets 7,435 6,842 62,986
Current liabilities — deferred tax liabilities (3,162) (3,857) (26,788)
Long-term liabilities — deferred tax liabilities (751,764) (681,503) (6,368,186)
Net deferred tax liabilities ¥(729,567) ¥(660,423) $(6,180,154)
(2) Reconciliations of differences between the statutory rate of income taxes and the effective rate of income taxes for the years ended
March 31, 2007 and 2006 are as follows:
2007 2006
Statutory rate of income taxes 39.9% 39.9%
Addition (reduction) in taxes resulting from:
Dividends income and others permanently not recognized as taxable income (5.2) (5.0)
Other 3.6 0.2
Effective rate of income taxes 38.3% 35.1%

17. Leases
(1) Finance leases (as a lessee) which do not transfer ownership of leased properties to lessees
(a) Pro forma information regarding the leased properties such as acquisition cost and accumulated depreciation, which are not reflected
in the accompanying consolidated balance sheets under finance leases as of March 31, 2007 and 2006 is as follows:
Thousands of
2007 2006 2007

Machinery and equipment:
Acquisition cost equivalents ¥14,047 ¥14,894 $118,999
Accumulated depreciation equivalents 7,830 7,838 66,335
Machinery and equipment net balance equivalents 6,217 7,056 52,665
Tools, furniture and fixtures:
Acquisition cost equivalents 13,667 13,603 115,777
Accumulated depreciation equivalents 6,396 6,866 54,184
Tools, furniture and fixtures net balance equivalents 7,271 6,736 61,593
Software:
Acquisition cost equivalents 154 122 1,305
Accumulated depreciation equivalents 77 73 660
Software net balance equivalents 76 49 644
Total net leased properties ¥13,564 ¥13,842 $114,902
Acquisition cost equivalents include the imputed interest expense portion because the percentage which is computed by dividing
future minimum lease payments by total balance of property, plant and equipment at year-end is immaterial.
(b) Pro forma information regarding future minimum lease payments as of March 31, 2007 and 2006 is as follows:
Thousands of
2007 2006 2007

Due within one year ¥ 4,342 ¥ 4,253 $ 36,788
Due after one year 9,221 9,588 78,114
Total ¥13,564 ¥13,842 $114,902
The amount equivalent to future minimum lease payments as of the end of the year includes the imputed interest expense portion
because the percentage which is computed by dividing future minimum lease payments by total balance of property, plant and
equipment at year-end is immaterial.
(c) Total lease payments for the years ended March 31, 2007, 2006 and 2005 are as follows:
Thousands of
2007 ¥5,212 $44,153

2006 5,235 –
2005 4,926 –
Pro forma depreciation expenses, which are not reflected in the accompanying consolidated statements of income, are computed mainly
by the straight-line method, which assumes zero residual value and leasing term to be useful lives for the years ended March 31, 2007,
2006 and 2005, and are equivalent to the amount of total lease payments of the above.
(2) Operating leases (as a lessee)

Pro forma future lease payments under operating leases as of March 31, 2007 and 2006 are as follows:
Thousands of
2007 2006 2007

Due within one year ¥ 5,068 ¥ 4,366 $ 42,933
Total ¥23,376 ¥16,639 $198,019

(3) Finance leases (as a lessor) which do not transfer ownership of leased properties to lessees
(a) Information regarding leased properties such as acquisition cost and accumulated depreciation under finance leases as of March 31,
2007 and 2006 is as follows:
Thousands of
2007 2006 2007

Machinery and equipment:
Acquisition cost ¥10,013 ¥7,356 $84,820
Accumulated depreciation 5,711 4,030 48,385
Total net leased property ¥ 4,301 ¥3,325 $36,435
(b) Pro forma information regarding future minimum lease income as of March 31, 2007 and 2006 is as follows:
Thousands of
2007 2006 2007
Due within one year ¥1,161 ¥1,256 $ 9,842
Total ¥6,328 ¥4,563 $53,609
The amount equivalent to future minimum lease income includes the imputed interest income portion because the percentage which is
computed by dividing future minimum lease income by total balance of property, plant and equipment at year-end is immaterial.
(c) Total lease receipt and depreciation expenses for the years ended March 31, 2007 and 2006 are as follows:
Thousands of
2007 2006 2007
Total lease payments to be received ¥2,450 ¥1,703 $20,757
Depreciation expenses 2,391 1,602 20,255
(4) Operating leases (as a lessor)

Pro forma information regarding future minimum rentals under operating leases as of March 31, 2007 and 2006 is as follows:
Thousands of
2007 2006 2007
Due within one year ¥14,835 ¥10,722 $125,670
Total ¥38,475 ¥32,333 $325,922
18. Changes in net assets

(1) Common stock outstanding for the year ended March 31, 2007:
Shares
Balance at March 31, 2006 325,840,640

Increase –
Decrease –
Balance at March 31, 2007 325,840,640
(2) Treasury stock outstanding for the year ended March 31, 2007:
Shares
Balance at March 31, 2006 6,520,194

Increase due to purchase of treasury stock in accordance with the resolutions at
Ordinary General Meeting of Shareholders held on June 22, 2006 8,000,000
Increase due to purchase of odd stock 16,471
Decrease due to exercise of stock options (771,500)
Balance at March 31, 2007 13,765,165

(3) Subscription rights to shares outstanding for the year ended March 31, 2007:
Thousands of
The Company ¥202 $1,719
(4) Dividends
(a) Dividends paid
Total dividends Dividends per share
Thousands of
Resolutions Class of shares Millions of yen U.S. dollars Yen U.S. dollars Record date Effective date
Ordinary General Meeting of Common stock 6,386 54,098 20 0.17 March 31, June 23,
Shareholders held on June 22, 2006 2006 2006
Board of Directors meeting held on Common stock 6,864 58,149 22 0.19 September 30, November 27,
October 31, 2006 2006 2006
(b) Dividends with a record date in the fiscal year under review for which the effective date falls in the following fiscal year
Total dividends Dividends per share
Thousands of Source of
Resolutions Class of shares Millions of yen U.S. dollars dividends Yen U.S. dollars Record date Effective date
Ordinary General Common stock 8,738 74,020 Retained 28 0.24 March 31, June 22,
Meeting of Shareholders earnings 2007 2007
held on June 21, 2007
19. Subsequent events

1. In January 2006, the Company acquired a 43.1% equity 2. At a meeting of the Board of Directors held on May 11, 2007,
stake in Wanbishi Archives Co., Ltd. In consideration of the the board decided that the Company would respond to a tender
future growth potential of Wanbishi Archives, Toyota Industries offer by DENSO Corporation for shares of Aisan Industry Co.,
subsequently acquired all remaining shares in that company from Ltd. held by the Company.
a fund operated by Tokio Marine Capital Co., Ltd. and made Consequently, on June 12, 2007, a report on the results of the
Wanbishi Archives a subsidiary. response to the tender was received from DENSO and on June
18, 2007, the Company transferred 4,819,000 shares of Aisan
(1) Outline of Wanbishi Archives Co., Ltd. Industry at ¥1,350 per share.
(a) Main businesses As a result, the Company will post the ¥5,862 million gain on
Engages in comprehensive information management the sale of investment securities as an extraordinary gain in the
business (provides services for safe storage, management, fiscal year ending March 2008.
collection and delivery of internal company data, including
crucial documents and magnetic tapes) and insurance 3. On June 21, 2007, the shareholders of the Company
service business. authorized payment of a year-end cash dividend to shareholders
(b) Capital: ¥4,000 million (as of March 31, 2007) of record as of March 31, 2007 of ¥28 (US$0.24) per share, or
(c) Total number of shares issued: 330,000 shares (as of a total of ¥8,738 million (US$74,020 thousand). Cash dividends
March 31, 2007) for the year totaled ¥50 (US$0.42) per share, including an interim
(d) Net sales: ¥19,309 million (year ended March 31, 2007) dividend of ¥22 (US$0.18).
(2) Date of stock acquisition: May 25, 2007
(3) Number of shares acquired, acquisition price and percentage

of shares held after acquisition
(a) Number of shares acquired: 187,000 shares
(b) Acquisition price: ¥33,007 million
(c) Percentage of shares held after acquisition: 100%

20. Segment information
(1) Business segments
As of and for the years ended March 31, 2007, 2006 and 2005:
Thousands of
2007 2006 2005 2007

Sales:
Automobile
Outside customer sales ¥ 904,893 ¥ 746,795 ¥ 616,200 $ 7,665,345
Intersegment transactions 21,134 20,768 18,222 179,027
926,028 767,564 634,422 7,844,371
Outside customer sales 767,237 595,236 503,989 6,499,258
Intersegment transactions 805 482 148 6,823
768,042 595,718 504,138 6,506,081
Logistics
Outside customer sales 89,470 65,145 – 757,908
Intersegment transactions 7,275 6,355 – 61,632
96,746 71,500 – 819,540
Textile Machinery
Outside customer sales 58,403 49,789 43,902 494,735
Intersegment transactions 5 22 24 50
58,409 49,811 43,927 494,785
Others
80,248 69,839 99,025 679,783
Subtotal 1,929,475 1,554,436 1,281,514 16,344,560
Elimination of intersegment transactions (51,077) (48,480) (39,975) (432,674)
Total ¥1,878,398 ¥1,505,955 ¥1,241,538 $15,911,886
Operating costs and expenses:
Automobile ¥ 892,435 ¥ 747,468 ¥ 611,659 $ 7,559,813
Materials Handling Equipment 720,840 556,950 478,053 6,106,234
Logistics 94,965 69,913 – 804,454
Textile Machinery 57,327 49,882 44,698 485,621
Others 73,920 66,107 93,782 626,177
Elimination of intersegment transactions (51,046) (48,407) (39,775) (432,415)
Total ¥1,788,443 ¥1,441,915 ¥1,188,418 $15,149,883
Operating income (loss):
Automobile ¥ 33,592 ¥ 20,095 ¥ 22,763 $ 284,559
Materials Handling Equipment 47,201 38,768 26,084 399,847
Logistics 1,780 1,587 – 15,085
Textile Machinery 1,081 (70) (771) 9,164
Others 6,328 3,732 5,243 53,606
Elimination of intersegment transactions (30) (73) (200) (259)
Total ¥ 89,954 ¥ 64,040 ¥ 53,120 $ 762,002

Thousands of
2007 2006 2005 2007

Assets:
Automobile ¥ 444,564 ¥ 420,204 ¥ 407,435 $ 3,765,896
Materials Handling Equipment 593,607 509,366 465,831 5,028,441
Logistics 132,857 106,356 – 1,125,435
Textile Machinery 17,034 16,516 25,621 144,299
Others 113,156 103,083 148,712 958,551
Corporate assets or elimination 2,284,637 2,089,813 1,279,222 19,353,134
Total ¥3,585,857 ¥3,245,341 ¥2,326,824 $30,375,755
Depreciation and amortization:
Automobile ¥ 53,557 ¥ 48,370 ¥ 37,075 $ 453,686
Logistics 4,178 3,309 – 35,397
Textile Machinery 1,087 1,010 897 9,216
Others 5,288 4,544 5,215 44,796
Corporate or elimination of intersegment transactions − 9 8 −
Total ¥ 106,060 ¥ 87,287 ¥ 70,213 $ 898,433
Capital expenditures:
Automobile ¥ 74,967 ¥ 101,897 ¥ 92,692 $ 635,046
Logistics 5,863 4,046 – 49,671
Textile Machinery 1,472 730 1,612 12,473
Others 17,049 8,620 8,222 144,429
Corporate or elimination of intersegment transactions − 20 5 −
Total ¥ 166,505 ¥ 158,835 ¥ 136,506 $ 1,410,466
1. Business segments are divided by the type and nature of the product.
2. Main products of each segment are as follows:
Fiscal 2007
Automobile ...............................................Passenger vehicles, diesel and gasoline engines, car air-conditioning compressors, foundry parts, electronics components
Materials handling equipment ...................Counterbalanced lift trucks, warehouse trucks, automated storage and retrieval systems, truck mount aerial work platforms
Logistics ...................................................Transportation services, collection and delivery of cash and management of sales proceeds
Textile machinery ......................................Air-jet looms, water-jet looms, ring spinning frames
Others ......................................................Semiconductor package substrates
Fiscal 2006
Automobile ...............................................Passenger vehicles, diesel and gasoline engines, car air-conditioning compressors
Materials handling equipment ...................Counterbalanced lift trucks, warehouse trucks, automated storage and retrieval systems, truck mount aerial work platforms
Logistics ...................................................Transportation services, logistics planning, operation of distribution centers, collection and delivery of cash and management of sales proceeds
Textile machinery ......................................Air-jet looms, water-jet looms, ring spinning frames
Others ......................................................Semiconductor package substrates
3. Corporate assets included in corporate assets or elimination consist mainly of cash and cash equivalents, short-term investments and
investments in securities held by the Company. Corporate assets were ¥2,352,362 million (US$19,926,836 thousand) and ¥2,141,920
million as of March 31, 2007 and 2006, respectively.
Changes in business segment
The logistics-related business, which was included in the Others Segment until fiscal 2005, has been separated and declared independently as the Logistics Segment starting from
fiscal 2006. In fiscal 2005, the Logistics Segment posted net sales of ¥37,913 million, an operating loss of ¥650 million, assets of ¥78,951 million, depreciation and amortization of
¥1,323 million and capital expenditures of ¥2,930 million.

(2) Geographical segments
As of and for the years ended March 31, 2007, 2006 and 2005:
Thousands of
2007 2006 2005 2007

Sales:
Japan
Outside customer sales ¥1,232,131 ¥ 1,009,368 ¥ 815,039 $10,437,372
Intersegment transactions 121,338 112,543 99,464 1,027,857
1,353,470 1,121,912 914,503 11,465,229
North America
290,029 248,186 213,379 2,456,835
Europe
319,204 221,919 195,890 2,703,974
Others
52,471 38,226 28,352 444,483
Subtotal 2,015,175 1,630,243 1,352,126 17,070,521
Elimination of intersegment transactions (136,776) (124,288) (110,588) (1,158,635)
Total ¥1,878,398 ¥1,505,955 ¥1,241,538 $15,911,886
Operating costs and expenses:
Japan ¥1,284,500 ¥1,069,137 ¥ 870,928 $10,880,984
North America 284,095 241,467 207,068 2,406,568
Europe 307,912 217,370 191,202 2,608,319
Others 49,364 36,743 27,712 418,167
Elimination of intersegment transactions (137,428) (122,804) (108,493) (1,164,155)
Total ¥1,788,443 ¥1,441,915 ¥1,188,418 $15,149,883
Operating income (loss):
Japan ¥ 68,970 ¥ 52,775 ¥ 43,575 $ 584,245
North America 5,934 6,718 6,311 50,267
Europe 11,292 4,548 4,688 95,655
Others 3,106 1,482 639 26,317
Elimination of intersegment transactions 651 (1,484) (2,094) 5,518
Total ¥ 89,954 ¥ 64,040 ¥ 53,120 $ 762,002

Thousands of
2007 2006 2005 2007

Assets:
Japan ¥ 887,351 ¥ 834,716 ¥ 788,827 $ 7,516,742
North America 196,769 179,116 151,047 1,666,828
Europe 337,866 278,825 264,274 2,862,060
Others 66,148 48,207 33,639 560,347
Corporate assets or elimination 2,097,722 1,904,475 1,089,034 17,769,779
Total ¥3,585,857 ¥3,245,341 ¥2,326,824 $30,375,755
1. Geographical segments are divided into categories based on their geographical proximity.
2. Significant countries or areas belonging to each segment are as follows:
Fiscal 2007
North America .........................................U.S.A., Canada
Europe ....................................................Sweden, Germany, France
Others .....................................................Australia, China, India
Fiscal 2006
Europe ....................................................Sweden, France, Germany
Others .....................................................Australia, China, Brazil
3. Corporate assets included in corporate assets or elimination consist mainly of cash and cash equivalents, short-term investments and
investments in securities held by the Company. Corporate assets are ¥2,352,362 million (US$19,926,836 thousand) and ¥2,141,920
million as of March 31, 2007 and 2006, respectively.
(3) Overseas sales

For the years ended March 31, 2007, 2006 and 2005:
Thousands of
2007 2006 2005 2007

Overseas sales:
North America ¥ 287,957 ¥ 247,957 ¥ 208,675 $ 2,439,287
Europe 347,617 249,237 225,409 2,944,663
Others 156,338 123,751 104,917 1,324,342
Total ¥ 791,913 ¥ 620,946 ¥ 539,002 $ 6,708,292
Total sales ¥1,878,398 ¥1,505,955 ¥1,241,538 $15,911,886
Ratio of overseas sales to total sales (%):
North America 15.3% 16.5% 16.8%
Europe 18.5 16.5 18.2
Others 8.4 8.2 8.4
Total 42.2% 41.2% 43.4%
1. Geographical segments are divided into categories based on their geographical proximity.
2. Significant countries or areas belonging to each segment are as follows:
Fiscal 2007
Europe ....................................................Germany, France, Italy
Others .....................................................China, Australia, Pakistan
Fiscal 2006
Europe ....................................................Germany, France, Italy
Others .....................................................China, Australia, India
3. Overseas sales are sales of the Company and its consolidated subsidiaries in countries and areas other than Japan.

21. Related party transactions
The following transactions were carried out with related parties:
(1) Sales of goods and services for the years ended March 31, 2007, 2006 and 2005 were as follows:
Thousands of
2007 2006 2005 2007

Toyota Motor Corporation ¥665,595 ¥527,020 ¥414,235 $5,638,250
Toyota Motor Corporation held 24.57% of the Company’s voting rights as of March 31, 2007. The above transactions were carried out
on commercial terms and conditions.
(2) Purchase of goods and services for the years ended March 31, 2007, 2006 and 2005 were as follows:
Purchase of goods:
Thousands of
2007 2006 2005 2007

Toyota Motor Corporation ¥484,336 ¥370,565 ¥285,019 $4,102,808
Purchase of services:
Thousands of
2007 2006 2005 2007

Toyota Industries Health Insurance Society ¥ 41 ¥61 ¥59 $ 348
Toyota Medical Corporation 664 45 45 5,629
Toyota Technological Institute − 50 50 −
Toyota Industries Health Insurance Society’s chairman as of March 31, 2007 is Yutaka Murodono, who is a director of the Company
and holds 0.00% of the Company’s shares. Toyota Industries Health Insurance Society’s chairman as of March 31, 2006 and 2005 was
Shiro Endo, who was a director of the Company and held 0.01% of the Company’s shares. Toyota Medical Corporation’s chairman as
of March 31, 2007, 2006 and 2005 is Yoshitoshi Toyoda, who is a director of the Company and holds 0.07% of the Company’s shares
as of March 31, 2007 and previously held 0.06% of the Company’s shares as of March 31, 2006 and 2005. Toyota Technological
Institute’s chairman as of March 31, 2007, 2006 and 2005 was Tatsuro Toyoda, who is a director of the Company and holds 0.08% of
the Company’s shares. The transactions above were carried out based on commercial terms and conditions.
(3) Outstanding balances arising from sale/purchase of goods/services as of March 31, 2007 and 2006 are as follows:
Receivables from a related party:
Thousands of
2007 2006 2007

Toyota Motor Corporation ¥33,859 ¥32,599 $286,820
Payable to a related party:

Thousands of
2007 2006 2007

Toyota Motor Corporation ¥48,815 ¥46,965 $413,513

22. Net income per share (EPS)
Bases of calculation for net income per share basic and net income per share diluted are as follows:
Thousands of
2007 2006 2007

Net income per share basic:
Net income ¥ 59,468 ¥ 47,077 $503,756
Net income not attributable to common shareholders – 432 –
(bonuses for directors and statutory auditors that are paid through appropriation)
Net income attributable to common shareholders 59,468 46,644 503,756
Weighted-average shares (thousand) 313,191 319,125 –
Net income per share basic (exact yen amounts) (exact US$ amounts) ¥ 189.88 ¥ 146.16 $ 1.61
Net income per share diluted:
Weighted-average shares for diluted computation (thousand) 362 314 –
Net income per share diluted (exact yen amounts) (exact US$ amounts) ¥ 189.66 ¥ 146.02 $ 1.61
23. Net assets per share

The basis of calculation for net assets per share is as follows:
Thousands of
2007 2006 2007

Net assets per share:
Total net assets ¥1,810,483 – $15,336,578
Amounts deducted from total net assets
Subscription rights to shares 202 – 1,719
Minority interests in consolidated subsidiaries 58,878 – 498,761
Net assets applicable to common stock at end of year 1,751,401 – 14,836,098
Outstanding shares of common stock at end of year used
for the computation of net assets per share (thousand) 312,075 –
Net assets per share (exact yen amounts) (exact US$ amounts) ¥ 5,612.11 – $ 47.54

Reports of Independent Auditors
Report of Independent Auditors
To the Board of Directors of Toyota Industries Corporation
We have audited the accompanying consolidated balance sheet of Toyota Industries Corporation (“the
Company”) and its subsidiaries as of March 31, 2007, and the related consolidated statements of income,
changes in net assets and cash flows for the year then ended, all expressed in Japanese yen. These
consolidated financial statements are the responsibility of the Company’s management. Our responsibility
is to express an opinion on these consolidated financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in Japan. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material
respects, the financial position of the Company and its subsidiaries as of March 31, 2007, and the results
of their operations and their cash flows for the year then ended in conformity with accounting principles
generally accepted in Japan.
The U.S. dollar amounts in the accompanying consolidated financial statements with respect to the year
ended March 31, 2007, are presented solely for convenience. Our audit also included the translation of
Japanese yen amounts into U.S. dollar amounts and, in our opinion, such translation has been made on
the basis described in Note 1 to the consolidated financial statements.
July 10, 2007

Report of Independent Auditors
To the Board of Directors and Shareholders of

We have audited the accompanying consolidated balance sheets of Toyota Industries Corporation and
its consolidated subsidiaries as of March 31, 2005 and 2006, and the related consolidated statements of
income, shareholders’ equity, and cash flows for each of the three years in the period ended March 31,
2006, all expressed in Japanese Yen. These consolidated financial statements are the responsibility of
the Company’s management. Our responsibility is to express an opinion on these consolidated financial
statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in Japan. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the
consolidated financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the consolidated financial statements. An audit
also includes assessing the accounting principles used and significant estimates made by management,
as well as evaluating the overall consolidated financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material
respects, the consolidated financial position of Toyota Industries Corporation and its consolidated
subsidiaries as of March 31, 2005 and 2006, and the consolidated results of their operations and their
cash flows for each of the three years in the period ended March 31, 2006 in conformity with accounting
principles generally accepted in Japan.
The amounts expressed in U.S. dollars, which are provided solely for the convenience of the reader, have
been translated on the basis set forth in Note 1 to the accompanying consolidated financial statements.
ChuoAoyama PricewaterhouseCoopers
Nagoya, Japan
June 22, 2006

Toyota Industries in Numbers (Years ended March 31)
Net Sales, Ordinary Income and Millions of yen

Ordinary Income Ratio
2003 2004 2005 2006 2007
2,000
5.8%
200 Net sales ¥1,069,218 ¥1,164,378 ¥1,241,538 ¥1,505,955 ¥1,878,398
5.7% 5.4%
5.1% Ordinary income 51,375 58,970 70,912 80,635 108,484
4.8%
1,500 150 Ordinary income ratio (%) 4.8 5.1 5.7 5.4 5.8
1,000 100
500 50
0 0
FY 03 04 05 06 07 Net sales (left) Ordinary income (right) Ordinary income ratio
Depreciation and Amortization

Millions of yen
(¥ Billion) 2003 2004 2005 2006 2007

125
Depreciation and amortization: ¥59,154 ¥65,351 ¥70,213 ¥87,287 ¥106,060
Automobile Segment 34,156 35,793 37,075 48,370 53,557
100
Materials Handling Equipment Segment 20,800 23,537 27,015 30,044 41,947
75
Logistics Segment – – – 3,309 4,178
Textile Machinery Segment 1,006 931 897 1,010 1,087
50 Others Segment (including corporate 3,192 5,090 5,226 4,554 5,288
or elimination)
25
0
FY 03 04 05 06 07 Automobile Materials Handling Equipment Logistics Textile Machinery Others
Capital Expenditures
Millions of yen
(¥ Billion) 2003 2004 2005 2006 2007

200 Capital expenditures: ¥87,559 ¥89,508 ¥136,506 ¥158,835 ¥166,505
150 Materials Handling Equipment Segment 24,350 32,204 33,972 43,520 67,152
Logistics Segment – – – 4,046 5,863
100 Textile Machinery Segment 2,164 1,203 1,612 730 1,472
Others Segment (including corporate 11,666 7,308 8,230 8,642 17,049
or elimination)
50
0
FY 03 04 05 06 07 Automobile Materials Handling Equipment Logistics Textile Machinery Others
R&D Expenses
Millions of yen
(¥ Billion) 2003 2004 2005 2006 2007

40 R&D expenses: ¥29,705 ¥29,562 ¥30,051 ¥31,166 ¥34,548
30 Materials Handling Equipment Segment 9,297 10,650 10,976 12,854 15,752
Logistics Segment – – – – –
20 Textile Machinery Segment 1,053 1,164 1,029 731 825
Others Segment (including corporate 608 1,993 832 1,622 1,696
or elimination)
10
0
FY 03 04 05 06 07 Automobile Materials Handling Equipment Textile Machinery Others

Net Sales and Operating Income of Millions of yen
Automobile Segment
2003 2004 2005 2006 2007
1,000 100 Net sales of Automobile Segment ¥595,459 ¥603,862 ¥616,200 ¥746,795 ¥904,893
Operating income of Automobile 30,107 27,530 22,763 20,095 33,592
750 75
Segment
500 50
250 25
0 0
FY 03 04 05 06 07 Net sales (left) Operating income (right)

Materials Handling Equipment Segment
(¥ Billion)
2003 2004 2005 2006 2007
(¥ Billion)
800 80 Net sales of Materials Handling ¥373,007 ¥443,443 ¥503,989 ¥595,236 ¥767,237
Equipment Segment
600 60
Operating income of Materials 16,174 19,348 26,084 38,768 47,201
400 40 Handling Equipment Segment
200 20
0 0

Logistics Segment
(¥ Billion)
2003 2004 2005 2006 2007
(¥ Billion)
100 4 Net sales of Logistics Segment – – – ¥65,145 ¥89,470
Operating income of Logistics – – – 1,587 1,780
75 3
Segment
50 2
The logistics-related business, which was included in the Others Segment, had been separated and declared independently as
the Logistics Segment starting from fiscal 2006.
25 1
0 0
Net Sales and Operating Income (Loss) Millions of yen

of Textile Machinery Segment
2003 2004 2005 2006 2007
60 6 Net sales of Textile Machinery Segment ¥48,740 ¥45,968 ¥43,902 ¥49,789 ¥58,403
Operating income (loss) of Textile 2,308 100 (771) (70) 1,081
40 4
Machinery Segment
20 2
0 0
(20) (2)
FY 03 04 05 06 07 Net sales (left) Operating income (loss) (right)

Others Segment
(¥ Billion)
2003 2004 2005 2006 2007
(¥ Billion)
80 8 Net sales of Others Segment ¥52,010 ¥71,103 ¥77,446 ¥48,988 ¥58,392
Operating income of Others Segment 3,912 5,750 5,243 3,732 6,328
60 6
40 4
20 2
0 0
Note: Segment net sales figures do not include intersegment transactions. However, segment operating income figures do include operating income (loss) arising from intersegment transactions.

Toyota Industries in Numbers (Years ended March 31)
ROE and ROA %
(%)
2003 2004 2005 2006 2007
6 Return on equity (ROE) 2.7 3.8 4.1 3.5 3.5
Return on assets (ROA) 1.3 1.8 2.0 1.7 1.7
0
FY 03 04 05 06 07 ROE ROA
Net Income per Share Yen
(¥)
2003 2004 2005 2006 2007
200 Net income per share — basic ¥70.19 ¥108.04 ¥135.09 ¥146.16 ¥189.88
Net income per share — diluted 62.90 101.97 135.03 146.02 189.66
150
100
50
0
FY 03 04 05 06 07 Basic Diluted
Interest-Bearing Debt, Total Net Assets Millions of yen

and Debt/Equity Ratio
2003 2004 2005 2006 2007
(¥ Billion) (%)
2,000 100 Interest-bearing debt ¥410,621 ¥ 320,965 ¥ 383,736 ¥ 473,707 ¥ 523,191
Total net assets 738,867 1,016,763 1,115,747 1,611,227 1,810,483
1,500 75 Debt/equity ratio (%) 55.6 31.6 34.4 29.4 28.9
1,000 50
500 25
0 0
FY 03 04 05 06 07 Interest-bearing debt (left) Total net assets Debt/equity ratio (right)
Total Net Assets per Share Yen
2003 2004 2005 2006 2007

(¥)
6,000 Total net assets per share ¥2,522.52 ¥3,199.69 ¥3,504.80 ¥5,044.45 ¥5,612.11
4,000
2,000
0
FY 03 04 05 06 07

Cash Dividends per Share and
Yen
Consolidated Payout Ratio
(¥) (%) 2003 2004 2005 2006 2007
50 50 Cash dividends per share ¥22.00 ¥24.00 ¥32.00 ¥38.00 ¥50.00
Payout ratio (%) 31.3 22.2 23.7 26.0 26.3
40 40
30 30
20 20
10 10
0 0
FY 03 04 05 06 07 Cash dividends per share (left) Payout ratio (right)
Market Capitalization Millions of yen
2003 2004 2005 2006 2007

(¥ Billion)
2,000 Market capitalization ¥513,824 ¥786,223 ¥961,075 ¥1,535,931 ¥1,741,381
1,500
1,000
500
0
FY 03 04 05 06 07
PER and PBR Times
2003 2004 2005 2006 2007

(Times) (Times)
40 1.0 Price/earnings ratio (PER) 25.0 22.9 22.4 32.9 29.4
Price/book value ratio (PBR) 0.7 0.8 0.9 1.0 1.0
30 0.75
20 0.5
10 0.25
0 0
FY 03 04 05 06 07 PER (left) PBR (right)
Number of Employees Persons
2003 2004 2005 2006 2007

(Thousands)
40 Number of employees 25,030 27,431 30,990 32,977 36,096
30
20
10
0
FY 03 04 05 06 07

Investor Information (As of March 31, 2007)
Corporate Head Office Number of Shareholders

TOYOTA INDUSTRIES CORPORATION 19,474
2-1, Toyoda-cho, Kariya-shi, Aichi-ken, 448-8671, Japan
Telephone: +81-(0)566-22-2511 Independent Accountants
Facsimile: +81-(0)566-27-5650 PricewaterhouseCoopers Aarata
JR Central Towers 33rd Floor, 1-1-4, Meieki, Nakamura-ku,
Date of Establishment Nagoya-shi, Aichi-ken, 450-6033, Japan
November 18, 1926
Transfer Agent
Common Stock Mitsubishi UFJ Trust and Banking Corporation
No par value 1-4-5, Marunouchi, Chiyoda-ku, Tokyo-to, 100-8212, Japan
Authorized: 1,100,000,000 shares Telephone: +81-(0)3-3212-1211
Issued: 325,840,640 shares
Stock Exchange Listings

Tokyo, Osaka and Nagoya (Ticker Code: 6201)
Major Shareholders (Top 10) (As of March 31, 2007) Distribution of Shares
Toyota Motor Corporation 76,600 (Thousands of shares)
0.5%
DENSO Corporation 29,647
Towa Real Estate Co., Ltd. 15,697 11.6%
Third Avenue Fund-Custodial Trust Company 14,747

The Master Trust Bank of Japan, Ltd. 10,887 As of
20.8% March 31, 46.0%
2007
Toyota Tsusho Corporation 8,289
Nippon Life Insurance Company 6,735
21.1%
HSBC Bank PLC-Clients Nontax Treaty 6,655
Aisin Seiki Co., Ltd. 6,578
State Street Bank and Trust Company 6,401 Other corporate entities
Financial institutions
Foreign corporate entities and others
Individuals, etc.
Brokerages

Common Stock Price and Trading Volume
(Tokyo Stock Exchange)
(¥) Stock price

7,000
6,000
5,000
High
Low
4,000
3,000
2,000
1,000
(thousand shares) Trading Volume

30,000
25,000
20,000
15,000
10,000
5,000
0
FY 2003 FY 2004 FY 2005 FY 2006 FY 2007
High ¥2,165 ¥2,530 ¥3,180 ¥4,850 ¥6,160

Low 1,725 1,686 2,235 2,780 3,980
At Year-End 1,755 2,475 3,020 4,810 5,580

2-1, Toyoda-cho, Kariya-shi, Aichi-ken 448-8671, Japan
Telephone: +81-(0)566-22-2511 Facsimile: +81-(0)566-27-5650
www.toyota-industries.com
This annual report is printed on recycled paper using soy ink

to minimize the impact on the environment.
Printed in Japan

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ANNUAL REPORT 2007

Year ended March 31, 2007

1926 to manufacture and sell automatic looms

(weaving machines) invented by Sakichi Toyoda.

In the ensuing years, Toyota Industries extended

the scope of its business domains to encompass

textile machinery, automobiles (vehicles, engines, car

air-conditioning compressors), materials handling

equipment, electronics and logistics. With production

bases in North America, Europe and Asia, including

Japan, China and India, as well as a worldwide sales

network, mainly in its Materials Handling Equipment

and Textile Machinery segments, the operations of

the Toyota Industries Group span the globe.

In November 2006, Toyota Industries celebrated the

80th anniversary of its founding. Looking ahead, we

remain committed to actively undertaking initiatives

aimed at achieving further development and growth.

Cautionary Statement with Respect to Forward-Looking Statements

42 Research and Development

94 Toyota Industries in Numbers

Toyota Industries Corporation Annual Report 2007 1

Toyota Industries Corporation

Net sales ¥1,878,398 ¥1,505,955 ¥1,241,538 ¥1,164,378 ¥1,069,218 24.7% $15,911,886

Operating income 89,954 64,040 53,120 52,631 52,477 40.5 762,002

Ordinary income 108,484 80,635 70,912 58,970 51,375 34.5 918,971

Net income 59,468 47,077 43,357 33,623 21,933 26.3 503,756

Capital expenditures 166,505 158,835 136,506 89,508 87,559 4.8 1,410,466

Per Share Data (yen, U.S. dollars)

Cash dividends 50.00 38.00 32.00 24.00 22.00 31.6 0.42

Total assets ¥3,585,857 ¥3,245,341 ¥2,326,824 ¥2,011,995 ¥1,650,391 10.5% $30,375,755

Number of employees 36,096 32,977 30,990 27,431 25,030 9.5

Sales by Business Segment

Automobile ¥904,893 ¥746,795 ¥616,200 ¥603,862 ¥595,459 $7,665,345

Materials Handling Equipment 767,237 595,236 503,989 443,443 373,007 6,499,258

Textile Machinery 58,403 49,789 43,902 45,968 48,740 494,735

Others 58,392 48,988 77,446 71,103 52,010 494,641

2 Toyota Industries Corporation Annual Report 2007

Overseas Sales Total Assets Total Net Assets

(¥ Billion) (¥ Billion) (¥ Billion)

750 3,000 1,500

500 2,000 1,000

250 1,000 500

Toyota Industries Corporation Annual Report 2007 3

4 Toyota Industries Corporation Annual Report 2007

New Medium-Term Management Plan Gets Off to a

Medium-Term Management Plan

Toyota Industries Corporation Annual Report 2007 5

Implementation of Strategies for All Business

Materials Handling Equipment Segment

6 Toyota Industries Corporation Annual Report 2007

Tetsuro Toyoda Hybrid Lift Truck

Toyota Industries Corporation Annual Report 2007 7

backed by our strength—always aiming to be

8 Toyota Industries Corporation Annual Report 2007

Toyota Industries Corporation Annual Report 2007 9

Refocusing on the Basics of Manufacturing and

Attracting Highly Ambitious Individuals and Creating a Vibrant Workplace

10 Toyota Industries Corporation Annual Report 2007