We sincerely appreciate your support of Toyota Industries Corporation and the Toyota Industries Group.
Looking at the overall economic conditions during fiscal 2015, ended March 31, 2015, although the U.S. economy remained solid, the Chinese economy recorded slower growth. As a result, the global economy registered a mild recovery overall. The Japanese economy decelerated as the consumption tax hike pushed down consumer spending.
Under these business conditions, the Toyota Industries Group focused on its quality first approach to earn the trust of customers and worked to expand sales by appropriately responding to respective market trends. As a result of these measures, Toyota Industries achieved record highs in consolidated net sales, operating income, ordinary income and net income.
Regarding the future outlook, the recovery in the world economy is expected to sustain momentum while in Japan consumer spending is anticipated to recover on the back of a rise in wages. Nevertheless, the business environment remains clouded by a host of uncertainties, including Japan’s overdependence on the U.S. economy, a further deceleration of the Chinese economy, an unstable situation in the Middle East and a deflationary trend in Europe.
Amid these circumstances, the Toyota Industries Group is building a stronger business foundation and addressing key management issues by leveraging the Group’s comprehensive strengths to further raise corporate value.
As immediate tasks, we will maintain and improve our muscular business structure to respond flexibly to rapid changes in the business environment. Specifically, we will comprehensively take into account quality and costs from the design stage, reduce lead times from development to sales and undertake cost improvement activities. Additionally, we will push ahead with the development of new technologies unmatched by competitors around the world and plan and develop appealing products tailored to the characteristics and needs of customers in each market. Moreover, we will work to build global production and sales structures and expand our value chain to provide a wide range of services.
Over the medium to long term, based on our quality first approach, we regard our top priority tasks as responding to environmental and safety issues and enhancing global competitiveness. In doing so, we will support industries and social foundations around the world by continuously supplying products and services that anticipate customers’ needs in order to contribute to a comfortable society and enriched lifestyles.
As articulated in Vision 2020, we will develop environment-friendly, energy-saving products focusing on the keywords of the 3Es (Energy, Environmental protection and Ecological thinking), while integrating functions and services demanded by customers (Value Chain) and providing these worldwide (World Market). Through these measures, we aim for growth in three business units, namely the “solution” business unit consisting of materials handling equipment, logistics and textile machinery; the “key components” business unit encompassing car air-conditioning compressors and car electronics; and the “mobility” business unit covering vehicles and engines. The Toyota Industries Group aims to work in unison to realize Vision 2020 based on the Medium-Term Management Plan, which lays out specific measures in each business unit up to fiscal 2016.
To support our global consolidated management, we will raise workplace capabilities, diversify the utilization of personnel and nurture human resources capable of playing active roles on the global stage. In addition, to counter a rise in risks resulting from an expansion in business activities, we aim to mitigate such risks and make a swift and accurate response when such risks materialize.
Besides creating a workplace that places the utmost priority on safety and thoroughly carrying out compliance, which includes adhering to laws and regulations, we will actively participate in social contribution activities. Through these efforts, we aim to win the trust of society and grow in harmony with society.
In closing, we ask for your continued understanding and support.