Toyota Industries Corporation Business Report FY ended Mar. 2013

Business Highlights

Financial Overview

(in millions of JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 Rate of change (%) Factors
Overall
Sales 1,615,244 1,543,352 4.7 -
Operating profit 77,098 70,092 10.0 -
Ordinary profit 86,836 80,866 7.4 -
Net profit 53,119 58,594 (9.3) -
Automotive Division
Sales 858,671 803,176 6.9 1)
Operating profit 29,411 21,239 38.5 -

Automotive division performance by business
1)
-Results in Japan improved due to eco-car sales incentives and other factors. Outside Japan, the North American and Asian markets were particularly strong, with expansion seen in the overall global market.

Automobiles
-Higher production volume of the RAV4 was offset by lower production volume of the Vitz. As a result, operating revenue was 356.7 billion yen, a 1% year-on-year increase of 2.3 billion yen.

Engines

-Operating revenue, which was 216.7 billion yen, grew by 19.6 billion yen year-on-year for a 10% increase, thanks to greater sales of the KD diesel engine in particular.

Automotive air-conditioning compressors

-Operating revenue was 228.1 billion yen, resulting in a year-on-year increase of 21.6 billion yen (a 10% rise), as a result of greater sales of products in this sector both in and outside Japan.

Contracts

- The Company has developed a DC-DC converter for idling stop function and won the first order for it from an automaker. The supply will start in fiscal 2013. This component is designed to ensure stable operation of wipers, lamps, a car navigation system, etc., by preventing voltage drop when the fuel-saving system shuts down and restarts an engine. The automaker adopted the component for increased perfectibility of the idling stop system. Considering that electric parts for the idling stop system, and for hybrid cars, have a high growth potential, the company “intends to develop and introduce other components with functions to store or generate electric power as well.” This may allow the company to increase its sales of new products while expanding its product range. (From an article in the Nikkan Jidosha Shimbun on Mar. 8, 2013)

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

Financial Overview for FY ended Mar. 31, 2014

(in millions of JPY)
  FY ending Mar. 31, 2014
(forecast)
FY ended Mar. 31, 2013
Sales 1,900,000 1,615,244
-Automotive Division 965,000 858,671
Operating income 95,000 77,098
Ordinary income 107,000 86,836
Net income 65,000 53,119

Sales of Automotive Products

(in millions of JPY)
  FY ending Mar. 31, 2014
(forecast)
FY ended Mar. 31, 2013
Complete vehicles 420,000 356,700
Engines 220,000 216,700
Compressors 265,000 228,100
Foundry parts, Electronic components 60,000 57,000

(Sales categorized based on customers' business lines)

R&D

R&D Expenditure

(in millions of JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 FY ended Mar. 31, 2011
Overall 39,057 32,070 27,788
Automobiles 23,817 20,649 17,613

 

Product Development

-Under the aim of weight reduction, the Company conducted R&D activities on the following products:

  • Plastic windows
  • High efficiency, variable capacity compressors
  • Electric compressors for hybrids and plug-in hybrids
  • Electric charging stations for auxiliary supply sources and plug-in hybrids and EVs

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 FY ended Mar. 31, 2011
Overall 124,282 91,972 60,019
Automobiles 63,005 36,732 20,993

Automotive air-conditioning compressors

-The Company announced on April 24 that it will construct a new automotive air-conditioning compressor plant in Indonesia in the spring of 2014. The new factory will be built as the second facility for its manufacturing subsidiary, P.T. TD Automotive Compressor Indonesia (TACI). The expansion will allow TACI to boost its yearly production capacity to 3 million units, almost double the current level. The total investment will be approximately 6.3 billion yen, and production is scheduled to begin in May 2014. TACI currently supplies its products to the ASEAN countries and India. It also plans to begin exports to Brazil by the end of fiscal 2013. While enhancing its production operations, Toyota Industries intends to make full use of the new facility as a base for exports to emerging countries in order to improve its competitiveness. (From an article in the Nikkan Jidosha Shimbun on Apr. 25, 2013)

Breakdown in Capital Expenditures by Major Automotive Division

(in millions of JPY)
Unit FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 FY ended Mar. 31, 2011
The Company 19,101 17,076 13,851
Tokaiseiki Co., Ltd. 1,356 1,631 1,667
Tokyu Co., Ltd. 1,536 N.A. N.A.
Izumi Machine MFG. Co., Ltd. 1,086 N.A. N.A.
Toyota Industry Automotive Parts (Kunshan) Co., Ltd. N.A. N.A. N.A.
Toyota Industry (Kunshan) Co., Ltd. 1,048 1,598 N.A.
Toyota Industries Compressor Parts America 10,292 N.A. N.A.
Kirioskar Toyoda Textile Machinery Pvt. Ltd. N.A. 1,070 N.A.
TD Deutsche Klimakompressor GmbH 9,211 1,219 N.A.
Michigan Automotive Compressor, Inc. 9,737 6,205 1,036
TD Automotive Compressor Indonesia 3,137 2,984 N.A.
TD Automotive Compressor Georgia, LLC 4,614 2,377 N.A.

New Equipment Installations (Automotive Business)

 (As of Mar. 31, 2013)
Company/ Plant
(Location)
Equipment to be installed Planned amount of investment (millions of yen) Project period
From To
Companies included in consolidated financial statements
Hekinan Plant
(Aichi Pref., Japan)

Facilities for manufacturing gasoline and diesel engines

9,815 Aug. 2012 Mar. 2014
Kariya Plant
(Aichi Pref., Japan)

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

3,900 Apr. 2013 Mar. 2014
Higashichita Plant
(Aichi Pref., Japan)

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

2,524 Aug. 2012 Mar. 2014
Obu Plant
(Aichi Pref., Japan)

Facilities for manufacturing compressor components used in automobile air-conditioners

2,500 Apr. 2013 Mar. 2014
Higashiura Plant
(Aichi Pref., Japan)
Facilities for manufacturing compressor components used in automobile air-conditioners 2,500 Apr. 2013 Mar. 2014
Kyowa Plant
(Aichi Pref., Japan)
Facilities for manufacturing in-vehicle electronic devices
Facilities for manufacturing press dies
2,486 Jan. 2012 Mar. 2014
Nagakusa Plant
(Aichi Pref., Japan)

Facilities for manufacturing passenger vehicles

2,000 Apr. 2013 Mar. 2014
Anjo Plant
(Aichi Pref., Japan)
Facilities for manufacturing in-vehicle electronic devices 1,800 Apr. 2013 Mar. 2014
Subsidiaries in Japan
Tokaiseiki Co., Ltd.
(Shizuoka Pref., Japan)

Facilities for manufacturing automotive components

1,350 Apr. 2013 Mar. 2014
Subsidiaries outside Japan
Michigan Automotive Compressor, Inc.
(Michigan, USA)
Facilities for manufacturing compressor components used in automobile air-conditioners 12,640 Apr. 2013 Mar. 2014
Toyota Industry Automotive Parts (Kunshan) Co., Ltd. Facilities for manufacturing industrial vehicles
Facilities for manufacturing casting products used in engines
7,503 Apr. 2013 Mar. 2014
Toyota Industries Compressor Parts America, Co. (TICA)
(Georgia, USA)
Facilities for manufacturing compressor parts for automotive air conditioners. 7,240 Apr. 2013 Mar. 2014
TD Automotive Compressor Indonesia
(Bekashi, Indonesia)
Facilities for manufacturing compressor components used in automobile air-conditioners 4,560 Apr. 2013 Mar. 2014
TD Automotive Compressor Georgia, LLC
(Georgia, USA)
Facilities for manufacturing compressor components used in automobile air-conditioners 2,480 Apr. 2013 Mar. 2014
TD Deutsche Klimakompressor GmbH
(Sachsen, Germany)
Facilities for manufacturing compressor components used in automobile air-conditioners 2,430 Apr. 2013 Mar. 2014
Kirioskar Toyoda Textile Machinery Pvt. Ltd.
(Bangalore, India)

-Facilities for manufacturing automotive components 
-Facilities for manufacturing textile machinery

2,281 Apr. 2013 Mar. 2014