Message from the Chairman and the President

To Our Shareholders and Investors

Firstly, we would like to extend our sincere appreciation for your continued support of Toyota Industries Corporation and the Toyota Industries Group.

Regarding the legal violations in engine certification in Japan that we announced in March 2023, we received a corrective order from the Ministry of Land, Infrastructure, Transport and Tourism on February 22, 2024. Subsequently, on March 22, 2024, we announced the fundamental measures to prevent recurrence based on the recommendations of the Special Investigation Committee. We would like to take this opportunity to express our deepest and sincerest apologies for causing great inconvenience to our customers, business partners, shareholders and many other stakeholders.

In response to this certification issue, we have formulated recurrence prevention measures that contain the three reforms in terms of “culture,” “mechanism” and “organization/system” to do the right thing in the correct way. The management and each and every one of us at Toyota Industries Group are committed to ethics & compliance and making a concerted effort for further strengthening global compliance organization and program, including compliance enhancements related to policies and procedures, training, and systems, to ensure the prior issues never happen again and prevent other compliance issues from occurring. We humbly ask for your continued support.

Turning to the economic conditions in fiscal 2024 (ended March 31,2024), although inflation slowed as a result of monetary tightening policies mainly in Europe and the United States, the outlook for the global economy remained uncertain due to recession concerns caused by higher policy interest rates and growing geopolitical risks in each region. Meanwhile, the recovery of the Japanese economy was moderate as a whole. The strong corporate performance benefiting from the weak yen and product price hikes has not translated into extensive wage increases and subsequent robust consumer spending. In this operating environment, the Toyota Industries Group increased both sales and profits compared to the previous fiscal year. We achieved this favorable performance by implementing initiatives to please customers in each market and field based on our commitment to delivering quality products and services to customers and contributing to various industries.

Toyota Industries determined the year-end cash dividend to be ¥140.0, an increase of ¥40.0. Including the interim cash dividend, we paid annual cash dividends per share of ¥240.0, an increase of ¥50.0 over the previous fiscal year. On a related note, Toyota Industries strives to take a flexible approach to shareholder returns, including purchasing treasury stock, while taking into consideration trends in share prices and the capital structure. We have decided to buy back treasury stock over the period of one year, starting from May 13, 2024, for a maximum of 10 million shares at a maximum total amount of ¥180 billion.

Looking at the surrounding business environment, the demands to realize a sustainable society have progressively diversified, and there have been ongoing innovations in digitalization and networking technologies. Amid this environment, competition has become increasingly fierce due mainly to technological advancements in electrification, autonomous driving and other domains relating to our products, new entrants from different industries utilizing IT technologies and changes in industry structure encompassing our customers. Toyota Industries is committed to rebuilding a stronger management platform, including thorough compliance and safety. While doing so, we will work to further reinforce the Logistics Solutions Business by leveraging our comprehensive strengths that take advantage of our manufacturing capabilities in the mobility-related field and by developing next-generation products. Through these efforts, we aim to achieve sustainable growth and increase corporate value.

In closing, we would like to sincerely ask for your continued understanding and support.