Value Creation Process

Building up our environmental activities, and continuing to promote ongoing business activities.
Toyota Industries is developing a business model that is keenly aware of sustainability.

Financial Capital
The pool of funds that is available to an organization for use in the production of goods or the provision of services.
Manufactured Capital
Manufactured physical objects that are available to an organization for use in the production of goods or the provision of services.
Intellectual Capital
Organizational, knowledge-based intangibles accumulated through business activities.
Human Capital
Employees' competencies, capabilities and experience, and their motivations to innovate.
Natural Capital
All renewable and nonrenewable environmental resources and processes that provide goods or services that support the past, current or future prosperity of an organization.

Business Activities

Textile Machinery
The Textile Machinery Division, our original business, which develops, manufactures, and sells textile machinery, and its products are supplied to markets worldwide. Thanks to superb reliability and high productivity, these have won extensive acclaim from customers.

Vehicles
In the past Toyota Industries manufactured the Starlet, a compact car, for Toyota Motor Corporation. Since 1999 we have engaged in the production of the Vitz (Yaris), the successor vehicle of the Starlet. In addition to the Vitz, we has started producing the RAV4 since 2001.

Industrial Vehicles and Materials Handling Equipment
Toyota Industries offers optimized materials handling solutions based on its technological capabilities and materials handling know-how. We provide products to our customers around the world using the Toyota, BT, and Raymond brand names.

Engines
Toyota Industries manufactures gas, gasoline and diesel engines in classes ranging from 1,000 cc to 5,200 cc. We are going all out to develop environmentally friendly engines that offer high power, low noise, low vibration, and reduced weight.

Car Electronics
Utilizing our power electronics circuit technologies and expertise in developing electronic drive systems, we are developing and producing automotive electronic parts and equipment such as DC-DC converters for hybrid vehicles.

Car Air-Conditioning Compressors
We hold over 40% of the world market for compressors, which are at the heart of car air-conditioning systems. We are striving towards developing compressors from the perspective of protecting the global environment.

Contributes to a Comfortable Society and Enriched Lifestyles.

Environmental Initiatives

Establishing the Global Environmental Commitment
As one tenet under our Basic Philosophy, 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. Accordingly, in February 2011, we established the Global Environmental Commitment, a specific environmental action guideline, to be shared and implemented throughout the Toyota Industries Group.
Achievement of the Fifth Environmental Action Plan
Toyota Industries completed its Fifth Environmental Action Plan covering the five years from fiscal 2012 to fiscal 2016. We conducted activities according to the action items and targets laid out in the Fifth Plan. They included a 10% reduction in CO2 emissions from major products to be developed during the period covered by the Fifth Plan; accomplishment of “CO2 Cancel,” our original concept to offset CO2 emissions from production activities by reducing CO2 emissions via improved product efficiency and other means; and improvement of environmental performance. We successfully achieved all designated targets.
Certification of Environmentally Friendly Products
Toyota Industries has been proactively promoting development and design of eco-conscious products. As part of the efforts, we launched the Environmentally Friendly Product Certification System in fiscal 2007, which certifies products that possess exceptionally high environmental performance, and have been showcasing these products to the public. With the addition of one product in fiscal 2016, a total of 19 products have obtained certification under this system in 10 years since its launch.
Toyota 1KD Industrial Diesel Engine Received Logistics Environmental Technology Development Award in 15th Logistics Environmental Awards Program
Toyota Industries developed the Toyota 1KD without using a diesel particulate filter (DPF) and successfully attained both lower fuel consumption and cleaner emissions by improving the fuel efficiency of the engine itself. This approach was highly recognized and received the Logistics Environmental Technology Development Award in the 15th Logistics Environmental Awards program. The Toyota 1KD has been fitted in our GENEO internal combustion lift trucks.
Reducing the Environmental Burden in Manufacturing
Toyota Industries positions the establishment of a low-carbon emission society as one of our most crucial environmental tasks. We have been working to reduce CO2 emissions in our global business activities and at the same time accelerate our efforts to develop more environment-friendly products as well as make effective use of resources throughout our entire supply chain.

Relationship with Our Customers

Retaining and Improving All Aspects of Quality in our Business Activities
Toyota Industries strives to maintain and improve the total quality of our corporate activities, which encompasses not only "product quality" but also "marketing quality" and "management quality." "Product quality" is embodied in the safety, eco-friendliness, durability, ease of use and workmanship of our products, while "marketing quality" entails excellent sales and service in addition to these attributes and "management quality" further enhances our overall corporate image and brand strength in terms of all of these attributes.
Implementation of DR-Design Reviews
At Toyota Industries, development of a new product entails defining specific goals to incorporate quality in every stage from product planning and design to production preparation, production, sales and after-sales services. We perform a design review (DR), which allows a product to proceed to the next stage only when a responsible business division head examines and approves whether the product has reached the target quality level.
Setting our "Quality Vision 2020"
Quality forms the basis of Toyota Industries' operations and is essential in attaining the goals of its Vision 2020. As such, Toyota Industries formulated its Quality Vision 2020, which defines our philosophy in ensuring quality. To achieve the goal of this vision, we issue the Quality Guidelines, which identify priority quality-related issues to be implemented in each fiscal year, to all production bases in and outside Japan and enforce Company-wide, horizontally aligned activities.
Acquisition of ISO 26262 Certification
Toyota Industries has been placing greater emphasis on functional safety as part of our efforts to strengthen our software development capabilities. In addition to external certifications obtained previously, our functional safety software development process is now certified under ISO 26262, an international standard for functional safety management for automotive applications. Our process has been recognized as meeting the highest level of safety stipulated under the standard.

Relationship with Our Business Partners

Fair Business Transactions Based on an Open Door Policy
Toyota Industries procures parts, raw materials and equipment from suppliers all over the world. We work hard to realize co-existence and co-prosperity with our business partners based on mutual trust. To achieve open procurement, we provide fair and equal opportunities to all potential business partners. We comprehensively evaluate our business partners based on such factors as quality, price and adherence to delivery times.
Reducing Environmental Impact through Environmentally Preferable Purchasing
In order to create environmentally friendly products, we aim to procure parts, raw materials and equipment from business partners that give sufficient consideration to the environment. Our Environmentally Preferable Purchasing Guidelines, which we have formulated to enforce “green” purchasing, apply not only to parts, raw materials and equipment but also to packaging materials. Along with environment-friendly products, we deliver greater safety and reassurance to customers.
Promoting Human Resources Development
We proactively provide procurement education both internally and externally. In fiscal 2016, we provided training on Japan's subcontracting law to strengthen compliance, with seminars attended by 1,012 Toyota Industries employees and 175 participants from affiliated companies. We also carried out workplace compliance inspections in an effort to prevent violations.
Business Continuity Plan (BCP) Activities for Possible Major Earthquake
Toyota Industries engages in BCP-related activities in anticipation of a major earthquake in Japan. To improve our preparedness for resuming the supply of products to customers at the earliest possible opportunity in the event of a disaster, we are making concerted efforts with business partners to ensure the stable supply of parts and raw materials during the restoration of production.

Relationship with Our Shareholders

Expanding IR Activities
Toyota Industries continually carries out timely and appropriate information disclosure for shareholders and investors. In this way, we raise management transparency so that we obtain an appropriate company valuation in stock markets. We engage in various investor relations activities to facilitate productive dialogue with shareholders and investors and feed back their comments to executives and relevant business divisions to reflect them in our business activities.
General Shareholders’ Meeting
Toyota Industries holds its annual general shareholders’ meeting early to avoid the date on which many companies hold their respective shareholders’ meetings so that more shareholders can attend. We are further facilitating the exercise of voting rights of our shareholders by allowing them to exercise such rights via the Internet and by joining the electronic voting platform for institutional investors.
Annual Dividend for Fiscal 2016
Toyota Industries regards ensuring shareholder benefits as one of the most important management policies. Accordingly, we strive to pay dividends on a continuous and stable basis and meet the expectations of shareholders . For fiscal 2016, Toyota Industries paid annual cash dividends per share of JPY 120.0 (interim cash dividend per share of JPY 60.0 and year-end cash dividend per share of JPY 60.0).

Relationship with Our Employees

Building a Safety-Oriented Culture That Aims for Zero Industrial Accidents
In accordance with our fundamental policy of “creating people capable of autonomously maintaining occupational safety and health,” Toyota Industries strives to prevent industrial accidents and occupational disorders as well as realize better work environments. Based on the idea of building “a homelike atmosphere at work that is warm and friendly” as stated in the Toyoda Precepts, we clarified “the true meaning of safety” and “the form of safety we seek” and formulated the Safety Vision in fiscal 2014.
Initiatives for Health Management and Improvement
Toyota Industries promotes employee health improvement programs to counter risks associated with aging and greater stress. In September 2015, we looked into establishing the necessary mechanisms to introduce a stress check system. From the initial fiscal year in which this system will be implemented, we are also planning to introduce feedback to relevant workplaces so that we can improve our mental health support structure even further.
Enhancing Team Strength
Toyota Industries believes that it is essential to enhance team strength so that each associate can work with vitality and the Company can achieve sustainable growth. We believe that team strength is made up of “technical skills” that form the basis of manufacturing operations, “management skills” to make maximum use of technical skills and a “spirit of harmony” that supports both. While further enhancing our team strength, we are striving to extend and hand it down beyond all business domains, generations and geographic regions.
Cultivating Highly Skilled Specialists
Toyota Industries works to cultivate highly skilled specialists through participation in the national and international skills competitions. At the 53rd National Skills Competition held in 2015, the Toyota Industries team won one gold medal in the “mechanical device control” category and received prizes in various other categories, thereby attaining medals for the 15th consecutive competition.
Establishing Work Environments Where Diverse Human Resources Can Play Active Roles
Toyota Industries promotes a variety of measures to create work environments where a diverse range of human resources can fully exercise their capabilities. We have set the target of tripling the number of female employees in managerial positions by the year 2020 compared with 2014, and intend to step up activities to achieve our goal.

Relationship with Our Local Communities

Activities as a Good Corporate Citizen
Based on “Respect for Others” as described in our Basic Philosophy, Toyota Industries strives to fulfill its role as a good corporate citizen in every region where it does business and actively engages in social contribution activities to realize an enriched and healthy society. We actively undertake various activities to contribute to local communities.
Organizing Food Education and Exchange Meeting for Children from Children’s Homes
The Toyota Industries Assistant Team Leader Association from manufacturing departments planned a rice growing experience alongside children from children’s homes as a new type of social contribution activity. With help from members of the local agricultural cooperative, the association got involved in activities such as planting rice, harvesting rice and pounding rice cakes, and shared with the children the importance of food all year round. From making scarecrows to playing in the mud, everyone got some exercise and had a fun time as well.
Participating in Joint Patrols to Stop Nuisance Parking
Sun River Co., Ltd., which operates sporting facilities, leases real estate and manages restaurants, carries out traffic safety activities in fall every year as a member of an association of local companies. During this campaign, employees took part in joint patrols to stop nuisance parking in the area around Esaka Station (Osaka Prefecture). As well as helping to improve traffic manners among local residents, this activity also serves to raise awareness among employees themselves.
Supporting Activities and Raising Money for Medical Institutions through a Charity Marathon
The Toyota Material Handling France SAS team made up of 89 people participated in charity marathons held in Paris and Toulouse in November 2015. These events are part of a campaign to raise recognition and awareness of men-specific illnesses and to be more health-conscious, and participants must wear a moustache whether real or fake. Participation fees of around 45,000 euros were raised and donated to medical institutions to support treatment and research on depression and prostate cancer.
Tree-Planting Activities to Protect Mangrove Forests
In January 2016, P.T. TD Automotive Compressor Indonesia (TACI) provided cooperation to an environmental protection program promoted by an Indonesian subsidiary of Toyota Motor Corporation and its group companies and planted trees in Maron Beach on the island of Java. This activity is conducted to protect mangrove forests, which play an important role in safeguarding biodiversity. A total of approximately 300,000 mangrove trees were planted, including 2,000 trees donated by TACI.
Assisting with Events Aimed at Sharing the Joys of Monozukuri
In July 2015, Michigan Automotive Compressor, Inc. (MACI) cooperated in the annual Learning Fair conducted in Jackson County in Michigan. The fair provides a hands-on opportunity to explore technology and the craftsmanship and is a great learning experience for children and adults alike. Five MACI employees took part and prepared monozukuri corner using compressor pieces and a robot experience corner.
Participating in Earthquake Recovery Support Activities in Japan
In May 2015, five employees of TD Deutsche Klimakompressor GmbH joined recovery support efforts in the area greatly damaged in the Great East Japan Earthquake through the NPO, Kizuna-in-Berlin. The volunteers engaged in various activities, such as restoring homes, tending farms and repairing tools. They stayed with the local residents in a homestay, which enabled them to deepen their insights into Japanese culture and daily life and to form bonds with people in the communities.