4/24/2011

TOYOTA COMPANY

Corporate Governance

Corporate Profile, Corporate Philosophy, Research and Development (R&D) Corporate Governance, Corporate Auditor System, Procurement, Plants & Office

Corporate Profile
Company name Toyota Industries Corporation Established Head office President Business activities Capital Net sales Operating income Ordinary income Net Income Employees November 18, 1926 2-1, Toyoda-cho, Kariya-shi, Aichi 448-8671 JAPAN Tetsuro Toyoda * List of Directors, Corporate Auditors and Managing Officers Manufacture and sales of textile machinery, automobiles, materials handling equipment, etc. as well as logistics business, etc. 80.4 billion yen 1,377.7 billion yen 22.0 billion yen (as of March 31, 2010)

31.7 billion yen -26.2 billion yen 38,903 (as of March 31, 2010)

*Note: Figures are based on FY 2010 consolidated business results. (Amounts less than one hundred million yen of the figures are omitted.)

Sales by Business Segment (FY 2010, Consolidated Basis)

* "FY 2010" refers to the fiscal year ended March 31, 2010, and other fiscal years are referred to in a corresponding manner.

Sales and Overseas Sales (Consolidated Basis)

Ordinary Income (Consolidated Basis)

Corporate Philosophy
Basic Philosophy (Toyota Industries' Corporate Philosophy)
Respect for the Law Toyota Industries is determined to comply with the letter and spirit of the law, in and outside of Japan, and to be fair and transparent in all its dealings. Respect for Others Toyota Industries is respectful of the people, culture, and tradition of each region and country in which it operates. It also works to promote economic growth and prosperity in those countries. Respect for the Natural Environment

Through its corporate activities, Toyota Industries works to contribute to regional living conditions and social prosperity and also strives to offer products and services that are clean, safe, and of high quality. Respect for Customers Toyota Industries conducts intensive product research and forward-looking development activities to create new value for its customers. Respect for Employees Toyota Industries nurtures the inventiveness and other abilities of its employees. It seeks to create a climate of cooperation, so that employees and the Company can realize their full potential. Five Values (We have Five Values that form an action guide for our employees to enforce our basic philosophy)

The Five Values were assembled as an action guide for the employees of Toyota Industries. Each and every one of our employees is to think for themselves and determine, What concrete action should we be taking and how should we change? They will then share these thoughts with each other, and by also sharing a similar set of values they will aim to promote the future development of Toyota Industries.

Toyota Industries Group CSR Policy

We, Toyota Industries Corporation and our subsidiaries, contribute to the harmonious and sustainable development of society and the Earth through all business activities that we carry out in each country and region based on our Basic Philosophy. We comply with local, national, and international laws and regulations as well as the spirit thereof, and we conduct our business operations with honesty and integrity. In order to contribute to sustainable development, we believe that management interacting with its stakeholders is of considerable importance, and we will endeavor to build and maintain sound relationships with our stakeholders through open and fair communication. We expect our business partners to support this initiative and act in accordance with it.

Customers Based on our philosophy of Customer First, we develop and provide innovative, safe, and high-quality products and services that meet a wide variety of customers' demands to enrich the lives of people around the world. We will endeavor to protect the personal information of customers and everyone else with whom we are engaged in business, in accordance with the letter and spirit of each country's privacy laws. Employees We respect our employees and encourage personal growth for our employees under our belief that the success of our business is led by nurturing each individual's character and abilities, and realization of the Group's full potential. We support equal employment opportunities and diversity for our employees and strive to enhance our team strength. We do not discriminate against employees. We strive to provide fair working conditions and to maintain a safe and healthy working environment for all our employees. We respect and honor the human rights of people involved in our business and, in particular, do not use or tolerate any form of forced or child labor. Through communication and dialogue with our employees, we build and share the value of Mutual Trust and Self-responsibility and work together for the success of our employees and the company. Management of each company takes leadership in fostering a corporate culture and implementing policies that promote ethical behavior.

Business Partners We respect our suppliers, dealers, and other business partners, and work with them through long-term relationships to realize mutual growth based on mutual trust. Whenever we seek a new business partner, we are open to any and all candidates, regardless of nationality or size, and evaluate them based on their overall strengths.

We maintain fair and free competition in accordance with the letter and spirit of each country's competition laws. Shareholders We strive to enhance corporate value while achieving stable and long-term growth for the benefit of our shareholders. We provide our shareholders and investors with timely and fair disclosure on our operating results and financial condition. Global Society/Local Communities [Environment] We aim for growth that is in harmony with the environment by seeking to minimize the environmental impact of our business operations, such as by working to reduce the effect of our vehicles and operations on climate change and biodiversity. We strive to develop, establish, and promote technologies enabling the environment and economy to coexist harmoniously, and to build close and cooperative relationships with a wide spectrum of individuals and organizations involved in environmental preservation. [Community] We operate our business so as to earn the trust of respective communities by honoring the cultures, customs, histories, and laws of each country. We constantly search for safer, cleaner, and superior technologies that meet the evolving needs of society.

Research and Development (R&D)

In keeping with its founding spirit of Be ahead of the times through endless creativity, inquisitiveness, and pursuit of improvement, Toyota Industries actively carries out research and development activities. Our R&D activities can be broadly classified into two areas, (1) product development and improvements performed independently within each business division, and (2) R&D undertaken mainly by the Research & Development Center separate from the activities of our business divisions and with a view toward company-wide management strategy.

1. R&D Activities Carried Out by the Business Divisions In each of our internal divisions various initiatives, centered on the technical departments, are being taken to promote the advanced development of future products that will lead the world in functionality, quality, and low cost. The results of these R&D activities are unveiled at an internal technology exhibition in each division and also at a company-wide technology exhibition held every year where the engineers from all divisions gather. In this way we strive to give our engineers access to a wide range of exchange opportunities.

Car air-conditioning compressor characteristic evaluation test (Installing it in the vehicle) The Research & Development Center, which is located in Kyowa, Obu City, Aichi Pref., undertakes the advanced development of fundamental technologies which will be the keys to the future products of each division, and advanced research for the development of new products for new businesses as well as development of materials and other technologies that will come to serve as the common foundation for all divisions. For example, there are a multitude of research and development results and prototypes such as a wide variety of functional parts for use in fuel cells, non-contact power supply technologies for use in clean logistics, super smooth coatings for inside car air-conditioning compressors, and three dimensional fabric reinforced composite technologies. From this point forward research and development will continue into new technology themes for every field including automobiles, materials handling equipment, and electronics.

Testing frictional wear of a new material Micro analysis of the surface

In order to make research and development more efficient and introduce leading edge technologies, we conduct collaborative research with Toyota Central Research & Development Laboratories, Inc., an R&D facility of the Toyota Group involved in basic research, as well as with universities, other outside R&D institutions, and manufacturers. Top level research activities are carried out with the support of the newest simulation software and analytical instruments. In this environment our researchers and engineers are developed through wideranging participation in scientific societies in all the major technological fields, such as machinery, electronics, physics, and materials, etc.

Corporate Governance
Basic Perspective of Corporate Governance
Toyota Industries strives to enhance the long-term stability of its corporate value and maintain society's trust by earnestly fulfilling its CSR commitments in accordance with its Basic Philosophy. To that end, we strive to enhance our corporate governance based on the belief that maintaining and improving management efficiency and the fairness and transparency of our corporate activities is of utmost importance.

Implementation Structure
Toyota Industries convenes monthly Board of Directors meetings to resolve important management matters and monitor the execution of duties by directors. External directors attend meetings of the Board of Directors, in which they give opinions and ask questions as deemed necessary to ensure legality and validity of the Board's decisions as well as directors' execution of duties. Additionally, we have adopted the Managing Officers System, which enables managing officers to focus solely on the execution of business operations and speed up decision making.In June 2010, we added two directors and three managing officers to further strengthen our management structure directed toward future business expansion. The Management Committee, which is composed of directors above the executive vice president level as well as relevant directors, managing officers and corporate auditors, deliberates on a variety of issues concerning important management matters such as corporate vision, management policies, medium-term business strategies and major investments. Toyota Industries has a divisional organization system, with significant authority delegated to each business division. For especially crucial matters, however, we have established the Business of the operations of each business.

Corporate Governance Structure

Emergency Profit Improvement Committee In response to the rapid downturn in our business environment, Toyota Industries has established the Emergency Profit Improvement Committee on December 1, 2008 directly under the president. Under the Emergency Profit Improvement Committee, we have set up 16 different subcommittees, such as the General Expenses Subcommittee, and are actively working on profit improvement activities throughout the Company. We will standardize cost reduction activities in each department, while strengthening planning and execution of measures to increase sales.

Corporate Auditor System

Toyota Industries has adopted a corporate auditor/board of corporate auditors system. Two standing corporate auditors and three external corporate auditors attend meetings of the Board of Directors to monitor the execution of duties by directors. At the same time, Meetings of the Board of Corporate Auditors are held once a month to discuss and make decisions on such important matters as auditing policy. The standing corporate auditors carry out auditing by attending primary meetings and receiving reports directly from directors. Additionally, we have assigned a staff of dedicated personnel who monitor the legality, soundness and efficiency of management through collaboration with independent auditors and the Audit Department. Toyota Industries has striven to maintain the fairness of management. As part of such efforts, taking into consideration the revisions (revised on December 22, 2009 and enforced on December 30, 2009) to Securities Listing Regulations and Enforcement Rules for Securities Listing Regulations for the Tokyo Stock Exchange, Osaka Securities.

Procurement
At Toyota Industries Corporation our procurement activities are based on fair business practices in order to realize amicable relationships and mutual benefit.

Toyota Industries Corporation is involved in a wide range of business fields and procures the parts, materials, and equipment for these many different businesses from suppliers all over the world. Along with requiring our suppliers to provide quality items at a low price and in a timely manner, we cooperate with them to promote environmental preservation and meet the other demands of society. In addition we take a long term view toward our relationships with suppliers with an aim to realize an amicable relationship of mutual benefit based on fair business practices. Procurement Policy Explanation of how we procure parts and supplies Contract Process Explanation of the standard process for a new contract Purchasing Organizations and Main Purchasing Items Details about the main procurement items required by Toyota Industries Supplier Registration Supplier registration can be done here EPP Guidelines Details of our Environmentally Preferable Purchasing (EPP) Guidelines

Plants & Offices

Plants
Address Tel Fax Head Office / 2-1 Toyoda-cho, Kariya-shi, +81-566-22-2511+81-566-27-5650 Kariya Plant Aichi 448-8671 Japan 1-1 Ebata-cho, Obu-shi, Aichi Obu Plant +81-562-46-1215+81-562-48-9295 474-8668 Japan 8 Chaya, Kyowa-cho, Obu-shi, Kyowa Plant +81-562-46-1115+81-562-48-9223 Aichi 474-8601 Japan 9-2 Yamaguchi, Nagakusa-cho, Nagakusa Plant +81-562-46-3113+81-562-48-9237 Obu-shi, Aichi 474-8686 Japan Takahama 2-1-1 Toyoda-cho, Takahama-shi, +81-566-53-7007+81-566-53-7261 Plant Aichi 444-1393 Japan 3 Hama-cho, Hekinan-shi, Aichi Hekinan Plant +81-566-48-3111+81-566-46-6321 447-8507 Japan 201 Nishiishitani, Nesaki-cho, Anjo Plant +81-566-73-2411+81-566-73-2153 Anjo-shi, Aichi 444-1295 Japan 60-1 Sakaekita, Morioka, Morioka WorksHigashiura-cho, Chita-gun, Aichi +81-562-82-2302+81-562-82-2309 470-2101 Japan

Offices
Tokyo Office Hokuriku Regional Office Address Tel Fax Marunouchi Building 29F, 2-41 Marunouchi, Chiyoda-ku, +81-3-5293-2500+81-3-3218-0070 Tokyo 100-6329 Japan KENJI Building 2F, 1-3106 Seiwa, Fukui-shi, Fukui 918- +81-776-24-7451+81-776-24-7162 8239 Japan

Toyota Material 717-5 Futamata, Ichikawa-shi, Handling +81-47-327-3500+81-47-327-3062 Chiba 272-0001 Japan Customer Center

Domestic Companies
Major Consolidated Subsidiaries Aichi Corporation TIBC Corporation Mail & e Business Logistics Service Co., Ltd. TOYOTA L&F Tokyo Co., Ltd. Sun River Co., Ltd. TOYOTA L&F Keiji Co., Ltd. Advanced Logistics Solutions Co., Ltd. Nishina Industrial Co., Ltd. Tokaiseiki Co., Ltd. SKM CORPORATION Iwama Loom Works, Ltd. TOYOTA L&F Shizuoka Co., Ltd. Hara Corporation Miduho Industry Co., Ltd. ALT Logistics Co., Ltd. Toyota Industries Well Support Corporation Wanbishi Archives Co., Ltd. HANDA Casting Company Asahi Security Co., Ltd. Altex Co., Ltd. IZUMI MACHINE MFG. CO., LTD. Tokyu Co., Ltd. Toyoda High System, Incorporated KTL Co., Ltd. Taikoh Transportation Co., Ltd. Unica Co., Ltd. Nagao Kogyo Co., Ltd. TOYOTA L&F Hyogo Co., Ltd. Sun Valley Inc. Sun Staff, Inc. Shine's Co., Ltd.

Overseas Companies
Major Consolidated Subsidiaries Toyota Industries North America, Inc. Toyota Material Handling North America, Inc. Toyota Industrial Equipment Mfg., Inc. The Raymond Corporation North America Raymond-Muscatine Inc. North Vernon Industry Corp. Indiana Hydraulic Equipment, Corp. Toyota Material Handling, U.S.A., Inc.

Michigan Automotive Compressor, Inc. TD Automotive Compressor Georgia, LLC ACTIS Manufacturing, Ltd. LLC Toyoda Textile Machinery, Inc. Toyota Industries Personnel Service of America, Inc. Lift-Rite Inc. G. N. Johnston Equipment Co., Ltd. Toyota Material Handling Mercosur Comercio de Equipamentos Latin America LTDA Toyota Material Handling Danmark A/S Toyota Material Handling UK Limited Toyota Material Handling Deutschland GmbH TD Deutsche Klimakompressor GmbH Europe Toyota Industrial Equipment, S.A. Toyota Industrial Equipment Europe, S.A.R.L. BT France S.a.r.l Toyota Material Handling Europe Brussels NV/SA Toyota Material Handling Belgium NV/SA Toyota Material Handling (Shanghai) Co., Ltd. TD Automotive Compressor Kunshan Co., Ltd. Toyota Industry (Kunshan) Co., Ltd. Toyota Industry Automotive Parts (Kunshan) Co., Ltd. Asia/Oceania Toyota Textile Machinery (Shanghai) Co., Ltd. Toyota Industries Trading & Logistics (China) Co., Ltd. Kirloskar Toyoda Textile Machinery Pvt. Ltd. Toyota Material Handling Australia Pty Limited Major Affiliates Accounted for by the Equity Method Europe Toyota Motor Industries Poland Sp. z o.o.

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