Toyota Industries Corporation Business Report FY2009

Business Highlights

Financial Overview

(in millions of JPY)
  FY2009 FY2008 Rate of change(%) Factors
Overall
Sales 1,377,769 1,584,252 (13.0) -
Operating profit 22,002 (6,621) - -
Ordinary profit 31,756 14,343 121.4 -
Net profit (26,273) (32,767) - -
Automotive Division
Sales 791,166 774,389 2.1 1)
Operating profit 23,663 (11,504) - -

1)
Automotive division performance by business
Automobiles
-Sales of finished vehicles increased by 20.6 billion yen or 5 percent year-on-year to 398.7 billion yen, thanks to a rise in sales of the RAV4. Sales of the Vitz and the Mark X Zio, however, decreased from the previous year's result.

Engines
-Sales of engines increased by 8.4 billion yen or 5 percent year-on-year to 165 billion yen, supported by a rise in sales of AR gasoline engines.

Automotive air-conditioning compressors
- Sales of automotive air-conditioning compressors fell by 9.3 billion yen or 5 percent year-on-year to 177 billion yen due mainly to lower production volumes at car manufacturers.

Contracts

-The Company announced that its newly developed cooling device for a hybrid-vehicle's power control unit (PCU) has been adopted for the new Toyota Prius.

-The Company announced development of the global-first technology to reduce autobody weight by using the 3-dimensional Carbon Fiber Reinforced Plastics (3D-CFRP), which has been selected by Toyota Motor Corp.
>>>See R&D for more details

-The Company will supply its plastic panoramic roofs to production vehicles to be introduced by a Japanese automaker in 2011. While comparatively small plastic windows have been incorporated in production vehicles of Japanese automakers as small-size windows and sliding sunroofs, this will be the first case that the plastic window covers most of the roof. The roof module weight will be halved compared to the glass one, which will contribute to approx. 0.1g reduction of CO2 emission per 1 km driving, according to the Company. (From an article in the Nikkan Jidosha Shimbun on Nov. 2, 2009)

Recent Developments in Japan

-The Company announced the cumulative production of its car air-conditioning compressors has reached 300 million units since its first car air-conditioning compressor model rolled off the line at the plant in Kariya City, Aichi Prefecture, back in Jan. 1960. (From a press release on Aug. 17, 2009)

Financial Overview for FY2009

(in billions of JPY)
  FY2010
(forecast)
FY2009 Year-on-year Fluctuation
Sales 1,400.0 1,377.7 223
-Automotive Division 745.0 778.3 (333)
Operating income 45.0 22.0 230
Ordinary income 50.0 31.7 183
Net income 27.0 (26.2) -

Sales of Automotive Products

(in billions of JPY)
  FY2010
(forecast)
FY2009 Year-on-year Fluctuation
Complete vehicles 3,350 398.7 (637)
Engines 1,700 165.0 50
Compressors 1,870 177.0 100

R&D

R&D Expenditure

(in millions of JPY)
  FY2009 FY2008 FY2007
Overall 26,826 33,646 36,750
Automobiles 15,257 17,033 17,370


-In 2009, the focus of R&D activities was on developing power control units and electric compressors for hybrid electric vehicles; as well as developing charging devices for plug-in hybrid vehicles.

Product Development

Cooling device for a hybrid-vehicle's power control unit
-The Company announced that its newly developed cooling device for a hybrid-vehicle's power control unit (PCU) has been adopted for the new Toyota Prius. It has developed the world's first technology to directly join the power semiconductor and the cooling device, which has substantially improved the cooling capacity and downsized the PCU. This cooling device has a new structure which makes it possible to be directly soldered with the power semiconductor. The original brazing technique jointly developed with Showa Denko K.K. has been utilized to produce this new structure which is capable of absorbing different coefficients of thermal expansion of respective materials. Compared to the previous cooling system that the coolant water runs through the chased passage of the PCU case, the cooling performance has been improved by 33% and the cooling device has been downsized to one third. The new PCU, therefore, has been downsized by 37%. (From an article in the Nikkan Jidosha Shimbun on May 22, 2009)

3-dimensional Carbon Fiber Reinforced Plastics
-The Company announced development of the global-first technology to reduce autobody weight by using the 3-dimensional Carbon Fiber Reinforced Plastics (3D-CFRP), which has been selected by Toyota Motor Corp. (TMC) for the Lexus LF-A. By taking advantage of its unique fabric mechanics, it has inserted additional carbon fiber into the conventional 2-dimensional fabric of warp and woof to increase the strength. The new technology is used for the Lexus LF-A's crash box, which absorbs collision impact. Jointly with TMC, the Company has also developed the mass-production technology of the CFRP products, which is also used to manufacture the roof-side-rail and the floor. Compared with the conventional 2D-CFRP, the new 3D-CFRP has 1.5 times higher energy absorbing capacity. The new crash box weighs 80% less than the iron-made one. (From an article in the Nikkan Jidosha Shimbun on Oct. 23, 2009)

EV charger for plug-in hybrid vehicles
-The Company announced development of an EV charger for plug-in hybrid vehicles (PHV). It is an electric power converter which transforms household alternating current to direct-current in order to charge the high-voltage batteries for PHVs. In the Toyota Prius Pug-in Hybrid, launched on Dec. 14, this small-size, air-cooling converter is mounted under the driver's seat. The EV charger measures 470 mm x 205 mm x 95 mm and weighs 6.6 kg. With 100 V alternating current input, it outputs approx. 1 kW, while fed by 200 V alternating current, it outputs 2 kW. For a full charge, 100 V input will take 3.5 hours and 200 V input will take 1.75 hours. The Company will also work on development of a water-cooling charger for PHV-exclusive models. (From an article in the Nikkan Jidosha Shimbun on Dec. 18, 2009)

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY2009 FY2008 FY2007
Overall 47,562 134,534 130,776
Automobiles 12,000 52,842 43,541

Breakdown in Capital Expenditures by Major Automotive Division

(in millions of JPY)
Unit FY2009 FY2008
The Company 7,333 32,920
Tokyu Co., Ltd. N.A. 5,475
Tokaiseiki Co., Ltd. N.A. 4,802
Toyota Industry Automotive Parts (Kunshan) Co., Ltd. 2,237 2,829
Iwama Loom Works, Ltd. N.A. 1,620
TD Deutsche Klimakompressor GmbH N.A. 1,520

New Equipment Installations (Automotive Business)

(As of Mar. 31, 2010)

Company/ Plant
(Location)
Equipment to be installed Planned amount of investment (millions of yen) Project period
From To
Companies included in consolidated financial statements
Nagakusa Plant
(Aichi Pref., Japan)

Facilities for manufacturing compact cars

9,859 May, 2009 Mar., 2011
Hekinan Plant
(Aichi Pref., Japan)
Facilities for manufacturing gasoline and diesel engines 2,500 Apr. 2010 Mar. 2011
Anjo Plant
(Aichi Pref., Japan)
Facilities for manufacturing in-vehicle electronic equipment 2,232 Apr. 2010 Mar. 2011
Kariya Plant
(Aichi Pref., Japan)

Facilities for manufacturing automobile air-conditioner compressors
Facilities for manufacturing textile machinery

1,953 Apr. 2010 Mar. 2011
Obu Plant
(Aichi Pref., Japan)

Facilities for manufacturing compressor components for automobile air-conditioners

1,200 Apr. 2010 Mar. 2011
Higashichita Plant
(Aichi Pref., Japan)

Facilities for manufacturing casting products used in engines
Facilities for manufacturing diesel engines

1,000 Apr. 2010 Mar. 2011
Higashiura Plant
(Aichi Pref., Japan)

Facilities for manufacturing compressor components used in automobile air-conditioners

350 Apr. 2010 Mar. 2011
Kyowa Plant
(Aichi Pref., Japan)

-Facilities for manufacturing in-vehicle electronic devices
-Facilities for manufacturing diesel engine parts
-Facilities for manufacturing press dies

268 Apr. 2010 Mar. 2011
Subsidiaries in Japan
Tokaiseiki Co., Ltd.
(Shizuoka Pref., Japan)

Facilities for manufacturing automotive components

1,528 Apr. 2010 Mar. 2011
Subsidiaries outside Japan
Toyota Industry Automotive Parts (Kunshan) Co., Ltd.
(Jiangsu, China)
Facilities for manufacturing casting products used in engines 1,731 Jan. 2010 Dec. 2010