Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	Rate of change(%)	Factors
Overall
Sales	1,543,352	1,479,839	4.3	-
Operating profit	70,092	68,798	1.9	-
Ordinary profit	80,866	73,911	9.4	-
Net profit	58,594	47,205	24.1	-
Automotive Division
Sales	803,176	804,167	(0.1)	1)
Operating profit	21,239	32,876	(35.4)	-

1)
Automotive division performance by business
- As a whole, the automotive market grew worldwide due factors such as the growth occurring in Asian markets and the economic recovery taking place in the North American market. This was in spite of depressed market conditions in Japan.

Automobiles
- Annual sales were lower by 21.1 billion yen year on year, which amounted to a 6% decrease to 354.4 billion yen due to decreased volumes of the RAV4 and the Vitz.

Engines
- Annual sales in the engine division were 197.1 billion yen, which was basically the same as sales during the previous year, with sales mainly of KD diesel engines increasing and AR gasoline engines decreasing.

Automotive air-conditioning compressors
- Sales of automotive air-conditioning compressor rose 14.7 billion yen year-on-year, an 8% increase, for a total of 206.5 billion yen due to increased sales in Japan and overseas.

Recent Developments in Japan

- The Company has begun to boost production of DC-DC converters in view of an increasing popularity of Toyota's recently launched compact "Aqua" hybrid, the company said on February 29. The DC-DC converter, which converts a high voltage of batteries on hybrids to 12 volt, is produced at the Anjo Plant in Aichi Prefecture. In 2011, Toyota Industries produced 60,000 converters a month on average for hybrids primarily for the Prius. The company is preparing to raise monthly production volume to more than 80,000 in February and March. In 2012, it plans to produce on the level of around 80,000 a month throughout the year. (From an article in the Nikkan Jidosha Shimbun on March 1, 2012)

- The Company announced that it produced the 4 millionth DC-DC converter for hybrid vehicles at the end of February 2012. In May 2000, the company began its production of DC-DC converters for Toyota's first generation Prius at its Kyowa plant, Aichi Prefecture, Japan. The Anjo plant in Aichi Prefecture also started the production of DC-DC converters in May 2009. Toyota Industries consolidated production of automotive electronics, such as DC-DC converters and AC inverters, to its Anjo plant in August 2011, and since then has been conducting a comprehensive production. (From a press release on February 29, 2011)

- The Company unveiled plans on December 1 to boost its domestic production capacity of electric compressors for car air conditioners by 50 percent to 1.5 million units from the current level by the end of 2012. Capacity will be enhanced by adding a new production line at the Kariya Plant in Aichi Prefecture, which is engaged in production of the product. While a hike in production capacity with an investment of about 900 million yen is meant to secure sufficient supply in response to growing demand from Toyota Motor Corporation, Toyota Industries will continue its efforts for reduction of weight and size of the product in an attempt to expand its sales to other automakers as well. (From an article in the Nikkan Jidosha Shimbun on December 2, 2011)

Contracts

- The Company announced on May 16, 2011 that its proprietary resin panoramic roof, which is the world's largest of its kind, is used on the new Toyota Prius α (Prius alpha) hybrid. No other Japanese automaker has ever adopted a resin panoramic roof. Compared with a conventional panoramic glass roof, the new system is 40 percent lighter in product weight, contributing to reducing CO2 emissions. In addition, its lower center of gravity enhances maneuverability, while its larger open window area adds a greater sense of spaciousness and comfort to the vehicle interior. (From an article in the Nikkan Jidosha Shimbun on May 17, 2011)

Mid-term Business Plans

- The Company Aichi Pref., Japan announced on Jan. 26, 2012 that it plans to increase production volume of its car air-conditioning compressors in the U.S. to seven million units, up 40% compared to the FY 2010 result. Now it mainly produces fixed-displacement type compressors in the U.S., while needs for continuous variable-displacement type compressors are expanding due to growing interest in fuel efficiency. Toyota Industries, therefore, will shift its major product to continuous variable-displacement type compressors, while increasing production. As of FY 2010, the fixed-displacement type consists of 70% of its whole compressors produced in the U.S. The company plans to replace it by the continuous variable-displacement type to make the latter a little less than 90% by FY 2016. It also plans to build a new plant for compressor parts, including pistons, to start production in September 2013, which is expected to raise the local content ratio. At present in the U.S., Toyota Industries manufactures compressors at its plants in Michigan and Georgia. It exports parts for the continuous variable-displacement type, which currently accounts for only 30% of its whole compressor output in the U.S, from Japan. Along with production expansion of the continuous variable-displacement type, it will optimize the parts supply operations. It will establish Toyota Industries Compressor Parts America, Co. (TICA) in Georgia in February 2012 (plan) and invest approx. 28 billion yen to construct a new plant. The new plant will have the production capacity of pistons and other parts for six million compressors to supply to the two compressor assembly plants. The increased continuous variable-displacement type compressors will be supplied to U.S. automakers as well as to Toyota Motor Corp. and other Japanese automakers in the U.S. After the autumn of 2013, compressor parts export from Japan to the U.S. will be discontinued. The parts production capacity in Japan will be allocated to supply for other regions including emerging markets. (From an article in the Nikkan Jidosha Shimbun on January 27, 2012)

- The Company announced on Oct. 28, 2011 its long-term vision targeting for the FY 2020 consolidated sales of over three trillion yen. Compared to FY 2010 results, it aims to double the sales and almost treble the operating profit to over 200 billion yen. It plans to achieve 1.5 trillion yen (2.2-fold of the FY 2010 result), a half of the sales, in the solution business including industrial vehicles; 700 billion yen (triple) in the component business including compressors; and 800 billion yen (up 40%) in the automobile and engine business. While it will further improve its solid business of the industrial vehicles, it plans to expand the component business along with increasing use of electronics in vehicles. As the first step toward these targets, Toyota Industries will start the new mid-term business plan from FY 2012 through FY 2015. The mid-term targets include the sales of over two trillion yen, up 35.1% from FY 2010 and the operating profit of 140 billion yen, up approx. 100%. It will invest approx. 500 billion yen in facilities over the four years in order to enhance the business operations. As for technology, it plans to launch new products with innovative technologies in the areas of environment and energy in order to win larger orders. (From an article in the Nikkan Jidosha Shimbun on October 31, 2011)

>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)

Financial Overview for FY ended Mar. 31, 2013

(in millions of JPY)

	FY ending Mar. 31, 2013 (forecast)	FY ended Mar. 31, 2012
Sales	1,650,000	1,543,352
-Automotive Division	870,000	803,176
Operating income	85,000	70,092
Ordinary income	93,000	80,866
Net income	59,000	58,594

Sales of Automotive Products

(in millions of JPY)

	FY ending Mar. 31, 2013 (forecast)	FY ended Mar. 31, 2012
Complete vehicles	360,000	354,400
Engines	209,000	197,100
Compressors	240,000	206,500
Foundry parts, Electronic components	61,000	45,000

(Sales categorized based on customers' business lines)

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	32,070	27,788	26,826
Automobiles	20,649	17,613	15,257

- During fiscal year ended Mar. 31, 2012, R&D focus was on developing plastic windows, which contribute to reducing vehicle weight; high-performance variable displacement compressors; electrically driven compressors for plug-in hybrids and hybrid electric vehicles; auxiliary power sources; and electric charging devices for plug-in hybrids and hybrid electric vehicles.

 

 

Product Development

- The company will strengthen plastic window business. It will transfer the functions of its automotive plastic products division, which has been engaged in the development of plastic windows, to a new plastic glazing business team to be established within its Corporate Center. Toyota Industries is supplying its plastic panoramic roof for the Toyota Priusα. The company aims to increase sales of the product, while expanding its application to other auto parts. (From an article in the Nikkan Jidosha Shimbun on June 22, 2011)

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	91,972	60,019	47,562
Automobiles	36,732	20,993	12,000

Breakdown in Capital Expenditures by Major Automotive Division

(in millions of JPY)

Unit	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
The Company	17,076	13,851	7,333
Tokaiseiki Co., Ltd.	1,631	1,667	N.A.
Toyota Industry Automotive Parts (Kunshan) Co., Ltd.	N.A.	N.A.	2,237
Toyota Industry (Kunshan) Co., Ltd.	1,598	N.A.	N.A.
Kirioskar Toyoda Textile Machinery Pvt. Ltd.	1,070	N.A.	N.A.
TD Deutsche Klimakompressor GmbH	1,219	N.A.	N.A.
Michigan Automotive Compressor, Inc.	6,205	1,036	N.A.
TD Automotive Compressor Indonesia	2,984	N.A.	N.A.
TD Automotive Compressor Georgia, LLC	2,377	N.A.	N.A.

New Equipment Installations (Automotive Business)

(As of Mar. 31, 2012)

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	7,227	Jun. 2011	Mar. 2013
Kariya Plant (Aichi Pref., Japan)	Facilities for manufacturing automobile air-conditioner compressors Facilities for manufacturing textile machinery	6,700	Apr. 2012	Mar. 2013
Hekinan Plant (Aichi Pref., Japan)	Facilities for manufacturing gasoline and diesel engines	6,056	Jul. 2011	Mar. 2013
Higashichita Plant (Aichi Pref., Japan)	Facilities for manufacturing casting products used in engines Facilities for manufacturing diesel engines	3,000	Apr. 2012	Mar. 2013
Obu Plant (Aichi Pref., Japan)	Facilities for manufacturing compressor components for automobile air-conditioners	1,700	Apr. 2012	Mar. 2013
Anjo Plant (Aichi Pref., Japan)	Facilities for manufacturing in-vehicle electronic equipment	1,100	Apr. 2012	Mar. 2013
Higashiura Plant (Aichi Pref., Japan)	Facilities for manufacturing compressor components used in automobile air-conditioners	1,100	Apr. 2012	Mar. 2013
Kyowa Plant (Aichi Pref., Japan)	-Facilities for manufacturing in-vehicle electronic devices -Facilities for manufacturing diesel engine parts -Facilities for manufacturing press dies	911	Jan. 2012	Mar. 2013
Subsidiaries in Japan
Tokaiseiki Co., Ltd. (Shizuoka Pref., Japan)	Facilities for manufacturing automotive components	1,647	Apr. 2012	Mar. 2013
Tokyu Co., Ltd. (Aichi Pref., Japan)	Facilities for manufacturing automobile air-conditioner compressors Facilities for manufacturing textile machinery	1,575	Apr. 2012	Mar. 2013
Subsidiaries outside Japan
Toyota Industries Compressor Parts America, Co. (TICA) (Georgia, USA)	Facilities for manufacturing compressor parts for automotive air conditioners.	16,624	Apr. 2012	Mar. 2013
Michigan Automotive Compressor, Inc. (Michigan, USA)	Facilities for manufacturing compressor components used in automobile air-conditioners	9,951	Apr. 2012	Mar. 2013
TD Deutsche Klimakompressor GmbH (Sachsen, Germany)	Facilities for manufacturing compressor components used in automobile air-conditioners	5,275	Apr. 2012	Mar. 2013
Toyota Industry (Kunshan) Co., Ltd. (Jiangsu, China)	Facilities for manufacturing cast parts used in engines; and facilities for manufacturing industrial vehicles	5,220	Apr. 2012	Mar. 2013
TD Automotive Compressor Georgia, LLC (Georgia, USA)	Facilities for manufacturing compressor components used in automobile air-conditioners	2,770	Apr. 2012	Mar. 2013
TD Automotive Compressor Indonesia (Kota Bekasi, Indonesia)	Facilities for manufacturing compressor components used in automobile air-conditioners	2,087	Apr. 2012	Mar. 2013
Kirioskar Toyoda Textile Machinery Pvt. Ltd. (Bangalore, India)	-Facilities for manufacturing automotive components  -Facilities for manufacturing textile machinery	1,230	Apr. 2012	Mar. 2013

 

Overseas investments

- Leading suppliers of the Toyota Group will largely expand their investments in facilities in FY2012. The Company will put 19 billion yen, about two thirds of the investment amount, in facilities for car air-conditioning compressors, as its new continuous variable-displacement type compressor is in good demand. Of the 19 billion yen, 11 billion yen will be invested in Japan and 8 billion yen, in the U.S. and Germany. (From an article in the Nikkan Jidosha Shimbun on August 5, 2011)