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Focus on BusinessMaterials HandlingEquipmentShareOur StrengthThe Materials Handling Equipment Business isfortifying its global No. 1 position through theToyota Material Handling Group (TMHG), a neworganization that integrates TOYOTA MaterialHandling Company (TMHC), the global leader incounterbalanced lift trucks, and the BT IndustriesGroup, the world’s top name in warehousetrucks. The BT Industries Group of companieswere acquired and became subsidiaries of theToyota Industries Group in 2000.Initiating full-scale activities in April 2006,TMHG is already steadily generating a widerange of noteworthy achievements. We believethat TMHG meets customers’ logistics needsby providing one-stop shopping for productsand services that combine a broad scope ofmaterials handling equipment with optimalbusiness solutions. This approach enablesthe Company to enhance customers’ logisticsefficiency worldwide, further strengtheningToyota Industries’ position as a world-leadingsupplier of materials handling equipment.The Materials Handling Equipment Businessalso includes Aichi Corporation, a subsidiarythat commands the dominant share of Japan’smarket for aerial work platforms.16Toyota Industries Corporation Annual Report 2007

Materials Handling EquipmentMarket Overview for Materials Handling EquipmentMarket for Materials Handling EquipmentContinues to ExpandHaving experienced continuous growth since calendar year 2002in tandem with a general economic recovery, the global market formaterials handling equipment grew by around 12% in calendar year2006. Despite concerns about soaring prices for crude oil and steelmaterials, the outlook from calendar year 2007 onward is also forrelatively high growth in emerging markets, particularly in the BRICs(Brazil, Russia, India and China) countries. Modest expansion in suchkey markets as Europe, North America and Japan is also expected.Rising Safety and EnvironmentalConsciousnessCustomer needs within these markets refl ect a growing globalawareness of safety and the environment, as evidenced by steadilyrising demand for materials handling equipment that not onlyminimizes such dangers as rollover accidents but also stressesergonomics, low noise and low vibration, as well as reduced exhaustemissions.As a noteworthy response to customer needs, our newgeneration of engine-powered lift trucks represents a signifi cantadvance over previous models and incorporates original systems thatcontribute to marked improvements in terms of reduced noise andvibration along with both operator safety and comfort and operatingeffi ciency. Production of the newly improved model got underway inJapan in September 2006 and in the United States in January 2007,and will begin in Europe in September 2007. The new generationof lift trucks is sold as the GENEO in Japan, the 8-Series in NorthAmerica and International, and the Toyota Tonero in Europe.By improving our previous engines, as a leading manufacturerwe are able to offer a new series of lift trucks that not only meetsstrict exhaust emissions regulations in Japan one year in advanceof required implementation but also incorporates leading-edgetechnologies that satisfy stringent 2010 emissions regulations inthe United States three years ahead of schedule and meets newEuropean emissions standards that will take effect in 2008.In addition, a new hand pallet truck based on a new-typepump and manufactured on an entirely new production line wasintroduced in Europe. This truck delivers improved performance andis manufactured in an environment-friendly manner that reduces theimpact on the environment in terms of chemical usage, lower energyconsumption and highly effi cient production processes.Integration of TMHGSince becoming partners in 2000, TMHC and the BT IndustriesGroup have continued to examine each other’s strengths in thepursuit of synergies that include mutually supplying respective brandproducts, sharing sales and production know-how, exchangingresources and jointly procuring products. Determining that the timewas ripe for maximizing synergies via the full-scale integration ofoperations, TMHG became operational from April 2006 as a newframework integrating TMHC and the BT Industries Group.In managing and carrying out its operations, TMHG has dividedits global markets into four regions—Europe, North America,International and Japan—and established a Board as the decisionmakingbody within each of these four regional organizations. AManagement Committee composed of TMHG top management andrepresentatives of each regional organization oversees the formulationof strategies and manages TMHG as a whole.TMHG has also set up Sub-Committees comprising functionalOrganizational Chart of Toyota Material Handling GroupTMHGManagement CommitteeGlobal Strategy, Optimum Resource Allocation, Global Management ControlTMHJ TMHE TMHNATMHI TMHJToyota Material HandlingEuropeToyota Material HandlingNorth AmericaToyota Material HandlingInternationalToyota Material HandlingJapanSub-CommitteesQuality, R&D, Product Planning, Information System/Information Technology, Plant Operation,Human Resources and FinanceToyota Industries Corporation Annual Report 200717

Focus on Businesssections of each regional organization to handle such principalfunctions as Quality, R&D, Product Planning, Information System/Information Technology, Plant Operation, Human Resources andFinance. Cross-sectional linkages permeating the entire organizationfacilitate the sharing of best practices and know-how cultivatedregionally as well as globally.We are currently pushing ahead with measures aimed at realizingour target of becoming “Undisputed No. 1” in the global industrialtruck market, and each of these initiatives has already begun tosteadily yield important results. Examples of the growing synergiesalready created include joint product development (e.g., three-wheelelectric lift truck for the European market), development of our ownkey components, strengthening of our production structure throughthe horizontal deployment of the Toyota Production System (TPS)throughout the entire group, the reorganization of sales structures ina number of regions and enhanced development effi ciency throughthe sharing of systems.While the BT and Raymond brands wield strong brand powerin Europe and North America, respectively, the TOYOTA brand hasachieved a solid position in Japan, the United States, Europe andseveral International markets (e.g., Australia and a number of Asiancountries). In its operations, TMHG intends to fi rmly maintain itscore TOYOTA, BT and Raymond brands while solidifying the optimalbrand and sales structures in each region to ensure that the power ofeach brand is fully utilized.Through the implementation of these measures, we plan to worktoward capturing an even higher global market share while aiming fora further increase in profi tability.TMHG’s Sales in 2006TMHG achieved record-high sales of almost 190,000 industrial trucksin calendar year 2006. Besides supplying cutting-edge productsmanufactured in Japan, North America, Europe and China, TMHGalso provides top-quality services worldwide.Business Activities in Fiscal 2007 by Geographic RegionJapanese MarketAmid a stable Japanese market, unit sales in the overall lift truckmarket increased 5% to 86,000 units in fi scal 2007.Calendar year 2006 marked the 50th anniversary since wecommenced sales of lift trucks in Japan. Commemorating thisoccasion, Toyota Material Handling Japan (TMHJ) put more energyinto sales promotion activities, which resulted in an impressive 43%market share for domestic sales of lift trucks in fi scal 2007. Thismeans we have maintained the top position in the Japanese lift truckindustry for the 41st consecutive year. In September 2006, TMHJcommenced sales of the new generation of engine-powered 1- to3.5-ton internal combustion counterbalanced lift trucks (sold as theGENEO in Japan) following a full model change. As its mainstayproduct, the GENEO provides dramatically greater product valuein terms of safety, environmental attributes and ease of operation,and is expected to contribute signifi cantly to the performance of theMaterials Handling Equipment Business.Aichi Corporation, which is involved in the manufacture and salesof aerial work platforms, posted increases in both sales and earningsdue to a brisk investment climate as Japanese companies continuedto enjoy strong sales.The year 2006 also marked the 20th anniversary since we startedsales of materials handling systems. In response to greater demandfor automatic guided vehicles (AGVs), during fi scal 2007 we upgradedour product lineup with the introduction of the Tugcart, a compact yethighly powerful AGV that enables a reduction in customers’ logisticspersonnel as well as improvements in logistics processes.Capitalizing on its comprehensive product lineup for materialshandling, TMHJ intends to continue to offer products closely tailoredto customer needs and provide solid logistics-related solutions.Launch of the Tugcart AGVSales of the Tugcart AGV commenced in February 2007 in Japan.Developed in response to a heightened need for AGVs that enablecustomers to reduce their logistics personnel and improve theirlogistics processes, the Tugcart is easy to introduce, plus coursescan be set up or changed by simply affi xing magnetic tape onguidepaths. It can also be used with existing carts without the needfor drastic modifi cations, and though only 19 cm high, boasts highpower with a maximum 1-ton towing capacity. Although the TugcartAGV is primarily utilized on factory fl oors within the manufacturingindustry at present, its wide range of applications extend fromcomponents manufacturers seeking to increase automation toproduct transport in the light manufacturing industry and trayservices at hospitals. Accordingly, sales expansion will be targeted byproposing these and other uses.Tugcart AGV18 Toyota Industries Corporation Annual Report 2007

Materials Handling EquipmentNorth American MarketToyota Material Handling North America (TMHNA) increased itslead as the No. 1 materials handling company in North Americafor the fi fth consecutive year. Of signifi cant note was the TOYOTAbrand’s 2006 growth rate, which was nearly double that of theentire U.S. market forindustrial trucks. In addition,TMHNA launched the highlyanticipated new generationof engine-powered lift trucks(sold as the 8-Series in NorthAmerica).The 8-Series, with70% less smog-forming8-Seriesemissions than the 2007Internal combustioncoun ter bal anced lift truckU.S. EnvironmentalProtection Agency (EPA) federal emissions standards, is just oneenvironmentally focused initiative TMHNA is employing to distinguishitself from its competitors. Another key initiative is fuel-cell lift trucks.A prototype of the industry’s fi rst fuel-cell lift truck was proudlydisplayed at ProMat 2007. The TOYOTA prototype uses hydrogen asits main power source and produces electricity without combustion,generating zero CO2 emissions. Additionally, Raymond received acontract from the New York State Energy Research and DevelopmentAuthority (NYSERDA) for a hydrogen fuel-cell feasibility study at amanufacturing facility of Toyota Material Handling ManufacturingNorth America (TMHMNA) in Greene, New York, which we believewill expedite the commercialization of our environment-friendlytechnology. TMHMNA also continued implementation of TPS atits manufacturing facilities in Greene, New York; Muscatine, Iowa;Brantford, Ontario; and Columbus, Indiana. We believe this will enableimprovement of our already strong reputation for product quality andreliability. Furthermore, TMHMNA continued efforts to competitivelysupply high-quality products; as part of this effort, the procurementdepartment was centralized at its facility in Greene, New York, whichwe believe will enable more cost-effective production of lift trucks.Many other signifi cant events took place during the fi scal yearunder review. Raymond received an award for its human resourcesdevelopment policies from the New York Management Council inrecognition of its best practices in health and safety that are part of itsunsurpassed safety program. Additionally, Raymond will celebrate theproduction of its 300,000th Raymond-brand lift truck during 2007.Meanwhile, the TMHMNA manufacturing plant in Indiana receivedthe Indiana Governor’s Award for Environmental Excellence andcelebrated the production of its 250,000th TOYOTA-brand lift truck.European MarketThe overall European market for industrial trucks continued toshow signifi cant growth, with especially strong growth recordedin the markets of Central and Eastern Europe. Accordingly, ToyotaMaterial Handling Europe (TMHE) established a new sales record forTOYOTA-, BT- and CESAB-brand units.TMHE took steps to both further develop its central organizationalstructure and launch new, unifi ed sales and marketing organizationsin a number of European markets. Centrally, TMHE unveiled a newmanagement structure and identifi ed areas—including sales, serviceand marketing—where customers will be better served by integratingthese support functions.European customers, particularly those with large fl eets, areincreasingly looking for materials handling suppliers who canprovide them with a full range of products, supported by services,fl eet management systems, as well as the fl exibility of lease andrental programs. To address these evolving market demands,TMHE created a new European Key Accounts (EKA) Departmentcombining the previous Toyota and BT major account teams. TheEKA Department provides our largest customers with a consistent,comprehensive offering of TOYOTA and BT products and services.TMHE has also studied each European market to determine thebest approach to strengthen customer relationships and improvecustomer contact. TMHE has launched unifi ed Marketing & SalesCompanies in a number of European markets, including the Nordiccountries, Germany and the United Kingdom, each of which willprovide its market with a complete range of TOYOTA and BTproducts and services.At the same time, TMHE has taken steps to increase the numberof fully owned distribution companies by acquiring independentdistributors, such as Toyota distributors in Austria, Finland, Greece,the Netherlands and Spain.In terms of its available products, TMHE had very positive resultsfor its new range of three-wheel, 24-volt electric counterbalancedtrucks marketed under the TOYOTA, BT and CESAB brands. Thisrange was developed by engineers in Europe in close collaborationwith their colleagues in Japan and is an excellent example of ourglobal coordination and synergy building. The success of thesetrucks, which are produced at TMHE’s manufacturing facility inBologna, Italy, demonstrates the kind of benefi ts that can be realizedby further integration.Furthermore, a new range of compact TOYOTA electric towtractors was introduced, and a number of BT-brand products werelaunched in 2006, including the market’s fastest horizontal transporttruck that delivers driving speeds of nearly 20 km/h with three loadedfull-sized pallets. A new BT-brand truck designed for customersneeding to stack and load/unload two pallets on top of each otherwas also released to market along with a new hand pallet truck thatuses the newly developed pump production line in Mjölby, Sweden.The new pumps further enhance the durability of the truck andreduce the environmental impact.Other highlights included the power truck division in Mjölbyreaching a milestone in 2006 with the shipment of its 500,000th unit,an electric pallet truck. The factory in Ancenis, France, celebratedToyota Industries Corporation Annual Report 200719

Focus on BusinessTopicsToyota Industries Displays Hybrid Lift Trucks at EVS 22In October 2006, Toyota Industries displayed its hybrid lift truckprototypes, developed jointly with Toyota Motor Corporation, atthe 22nd International Battery, Hybrid and Fuel Cell Electric VehicleSymposium & Exposition (EVS 22). This is the world’s largestinternational symposium for electric vehicles, which covers suchfi elds as electric vehicles, hybrid cars and fuel-cell cars. The eventattracted participants from a vast range of sectors, spanning notonly manufacturers and ordinary users from around the world butalso representatives of nationaland municipal governmentbodies, research institutes and themedia. Amid a rising tide of globalinterest in electric vehicles,this exhibition served as anexcellent forum for extollingthe benefi ts of ourfuture technologies.Toyota Factory Celebrates Production MilestoneIn September 2006, the Toyota Industrial Equipment plant in Ancenis,France, celebrated 10 years of operation and cumulative productionof 100,000 units. The Ancenis facility produces electric and enginepoweredcounterbalanced lift trucks for the European market, andsince beginning production in 1996 has established itself as a worldclassmanufacturing plant.Raymond Celebrates 85th AnniversaryIncreases in population and evolving lifestyles have spurred increaseddemand for warehouses and delivery capabilities. In responding tothis trend, Raymond has continually developed high-performance lifttrucks, thus playing a key role in enabling shippers to trim costs andraise processing capabilities.Upon the occasion of its 85thanniversary in 2006, Raymondremains committed toresponding to customer needsas a leader in both offeringmaterials handling equipmentand providing solutions.Raymond Receives Award for Human ResourcesDevelopment PoliciesIn October 2006, Raymond received an award for its humanresources development policies from the New York ManagementCouncil in recognition of its best practices in health and safety thatare part of its unsurpassed safety program. Raymond providesits employees with a safety program comprised of fi ve differentprincipal categories: policies and procedures, practice, problemawareness and solutions,communication,and remunerationand awareness. Themanagement of Raymondis making its best effortsto ensure this programfunctions effi ciently.BT Attains Cumulative Production of 500,000 WarehouseTrucksThe BT power truck division in Mjölby, Sweden, achieved cumulativeproduction of 500,000 units in November 2006. While it took 28years to reach cumulative production of its fi rst 100,000 units sincecommencing production 60 years ago, BT subsequently acceleratedproduction to produce its mostrecent 100,000 units over a periodof just three years. Although attainingaggregate production of 500,000units represents a signifi cantmilestone, BT will continue workingto establish a structure that will allowthe annual production of 60,000units in line with plans to furtherexpand sales.BT New Compact Three-Wheel Counterbalanced LiftTruck Earns Safety AwardIn October 2006, BT’s compact three-wheel counterbalanced lift truckearned recognition as a lift truck with the highest standard of safetyat the Préventica exhibition in France. This biennial exhibition focuseson safety and ergonomics, and the most recent exhibition attracted6,000 visitors. The BT-brand series of C3E-R electric lift trucks wasawarded the Innovation Prize, winning high acclaim for such featuresas the C3E-R’s automatic speed reduction on cornering and drivewheeldirection indicator. The C3E-R was developed by engineers inEurope in close collaboration with their colleagues in Japan and is anexcellent example of global coordination and synergy building in theToyota Material Handling Group.Cesab Wins International Best Factory AwardCesab’s factory in Bologna, Italy, earned the International Best FactoryAward, which is presented to excellent production plants in Italy.Sponsored by Bocconi University’s SDA Bocconi, one of the world’sauthoritative institutions in economics and business administration,as well as Sole 24 Ore, a leading economic newspaper, this award ispresented based on a comprehensive evaluation that encompassesquality, lead-times, fl exibility and innovation. Cesab has achieved highname recognition internationally.22 Toyota Industries Corporation Annual Report 2007

Materials Handling EquipmentProducts for the Japanese MarketIndustrial VehiclesGENEO (8FG25)Internal combustioncoun ter bal anced lift truckGENEO-B (7FB15)Electric coun ter bal ancedlift truckGENEO-E (7FBE15)Three-wheel electriccounterbalanced lift truckGENEO-R (7FBR15)Electric reach truckTow Tractor(2TD25)Skid Steer Loader(4SDKL8)Materials Handling SystemsPartner RackRail-less mobile rackRack Sorter BAutomated storage andretrieval system(Plastic container type)Rack Sorter PAutomated storage andretrieval system(Pallet type)TugcartAutomatic guidedvehicle system2AFBR15Automatic guidedlift truckAPLB8Automatic guidedpallet truckPlease visit www.aichi-corp.jp formore information.Truck Mount Aerial Work PlatformsSelf-Propelled Aerial Work Plat formsSH15BSE08C TZ-10A type “RR”SC40ASR-18AJNote: Although Aichi Corporation is not integrated into the Toyota Material Handling Group, it comprises an important part of the Materials Handling Equipment Business.RX07BToyota Industries Corporation Annual Report 200723

Focus on BusinessProducts for the North American MarketPlease visit www.toyotaforklift.com for more information.7FGU70Internal combustion pneumatic tirecounterbalanced lift truck8FGCU25Internal combustion cushion tirecounterbalanced lift truck7FGCU55-BCSInternal combustion cushion tirecounterbalanced lift truck—boxcarspecial model8FGU25Internal combustion pneumatic tirecounterbalanced lift truck7FBEU20Three-wheel electric counterbalancedlift truck7FBCU25Electric cushion tire counterbalancedlift truck7BPUE15Electric order pickerPlease visit www.raymondcorp.com for more information.Raymond Model 7400Reach-Fork TruckReach truckRaymond Model 4200 Stand-Up Counterbalanced TruckElectric counterbalanced truckRaymond Model 8400 Pallet TruckElectric pallet truckRaymond Model 5600OrderpickerOrder picking truckRaymondSwing-Reach TruckVery narrow aisle truck24 Toyota Industries Corporation Annual Report 2007

Materials Handling EquipmentProducts for the European MarketPlease visit www.toyota-forklifts.eu for more information.Internal combustion counterbalancedlift truck (1.5-3.5 ton)*Launched in calendar year 20077FG/D35Internal combustion counterbalancedlift truck (3.5-5 ton)7FBMF25Electric counterbalanced lift truck (80V)7FBEF15Three-wheel electric counterbalancedlift truck (48V)Three-wheel electric counterbalancedlift truck (24V)4CBT2Electric tow tractorPlease visit www.toyota-forklifts.eu for more information.VectorVery narrow aisle truck withshuttle forksReflexReach truckStratosPowered stacker truck withstand-in cabIxionSupport arm stacker truckMinimoverPowered stacker truckOpusLow-level order picking truckOrionPowered pallet truckPro LifterHand pallet truckToyota Industries Corporation Annual Report 200725

Focus on BusinessCar Air-ConditioningCompressorCar Air-ConditioningCompressors Top20 Million Units toLead the GlobalMarketWith annual sales exceeding 20 million units,Toyota Industries commands the world’s No. 1share for car air-conditioning compressors—testimony to the high reliability of theseproducts. Underlying this leading position isour ability to develop new products that webelieve anticipate the needs of the times as wellas outstanding technological capabilities thatsupport product development. In maintainingthe top global position, we remain committedto addressing the need for car air-conditioningcompressors that are more compact, lighter inweight and offer higher performance, therebyenhancing the comfort of vehicles.26 Toyota Industries Corporation Annual Report 2007

Car Air-Conditioning CompressorToyota Industries Achieves Record Sales of20.45 Million UnitsThe Car Air-Conditioning Compressor Business is one core businessof the Automobile Segment as well as an important strategicbusiness of Toyota Industries. Tapping excellent developmentand technological capabilities, Toyota Industries develops andmanufactures high-quality, effi cient products that it supplies notonly to Toyota Motor Corporation (TMC), but also to other premierautomakers worldwide. In so doing, we believe we are makingvaluable contributions to technological advances, improvements incomfort and fuel effi ciency of vehicles.Thanks to the development of products that anticipate userneeds and to our proactive sales expansion activities, ToyotaIndustries’ total sales of car air-conditioning compressors in fi scal2007 reached an all-time high of 20.45 million units, an increase of1.34 million units from the previous fi scal year. In gearing up to meetincreased demand, we made further strides in strengthening ouroptimal global production structure during the fi scal year. Amongthe more noteworthy achievements, in April 2006 Toyota Industriesbegan producing variable-displacement compressors at our fourthoverseas compressor manufacturing subsidiary, TD AutomotiveCompressor Kunshan Co., Ltd. (TACK) in Kunshan, China. In NorthAmerica, we strengthened our production capacity for variabledisplacementcompressors at TD Automotive Compressor Georgia,LLC (TACG), while in Japan we completed renovation of our ObuPlant in May 2006.All of Toyota Industries’ car air-conditioning compressors aresupplied to DENSO Corporation (DENSO), which in turn sells themto leading automakers worldwide.TD Automotive Compressor Kunshan Co., Ltd.Product Development Capabilities thatRespond to Global Needs Focusing on BasicPerformanceToyota Industries’ car air-conditioning compressors continuallyanticipate the latest user needs, earning high acclaim for ourproducts from TMC and other leading automakers worldwide.We have compiled a solid record of ongoing achievementsin developing technologically advanced car air-conditioningcompressors, with strong emphasis on basic performancerequirements, including reliability at high operating speeds, quietoperation, compactness, light weight and fuel effi ciency. Moreover,because our customers are leading global automakers, we engagein well-honed product development to closely tailor our compressorsto diverse customer needs while vigorously promoting productdevelopment with a view to the future.As excellent examples of major world-fi rst technologicaldevelopments, in 1981 Toyota Industries developed a compact,lightweight 10-cylinder swash-plate fi xed-displacement compressorwith an excellent reputation for quietness and superb reliabilityat high operating speeds. Adding to our achievements, in 1995Compressor Sales(Million units)222018World’s first mass-producedelectrically driven compressorfor hybrid vehiclesWorld’s first electricallydriven compressorequipped with an inverter161412World’s first variable-displacementclutchless compressor1086World’s first 10-cylinderswash-plate fixeddisplacementcompressorWorld’s first one-way swash-platevariable-displacement compressor420FY81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07OthersVariable-displacement compressorFixed-displacement compressorToyota Industries Corporation Annual Report 200727

Focus on Businesswe addressed growing concerns about the environment withthe development of an internally controlled one-way swash-platevariable-displacement compressor that contributes to lower CO2emissions and energy savings by reducing the load on the engine toincrease fuel effi ciency. In 1997, Toyota Industries once again brokenew ground by successfully developing an externally controlledcontinuous variable-displacement clutchless compressor thatenhances acceleration and reduces energy consumption by changingdisplacement in response to the heat load and engine revolutions.Subsequently, in 2003 we collaborated with DENSO to develop anelectrically driven compressor for hybrid vehicles. This compressorallows the air conditioner to be operated even when a hybrid vehicle’sengine is stopped, thus realizing an optimal balance between fueleffi ciency and comfort. In 2005, Toyota Industries developed a newcompact electrically driven compressor equipped with an inverter.We believe that each of these car air-conditioning compressorsoffers irrefutable proof of the technological and competitive superioritythat has propelled Toyota Industries to the world’s top position interms of unit sales and market share.Looking to the future, we intend to continue our active approachto developing cutting-edge technologies and new products thatcontribute to the development of new cars by automakers worldwide,not only for conventional engine-powered vehicles but also for hybridvehicles, for which global demand is expected to rise amid soaringenergy prices and mounting concern for environmental protection.Operating an Optimal Global ProductionStructureUnderscoring our fi rm commitment to meeting the needs ofcustomers worldwide, Toyota Industries has been striving to realizea fl exible global production structure for its Car Air-ConditioningCompressor Business.Toyota Industries currently operates a far-reaching network ofproduction bases spanning Japan, North America, Europe and Asia.In Japan, our largest production base, we have built an integratedproduction structure encompassing molds, die casts, processing andassembly centered on the Kariya, Obu and Higashiura plants. Thesethree facilities play a key role as mother plants for our domestic andoverseas subsidiaries. As one example, these plants’ highly advancedaluminum die-cast technologies and technologies for automatingproduction lines utilizing robots are being deployed at productionbases in Japan and overseas, enabling major achievements.In North America, Michigan Automotive Compressor, Inc. (MACI),based in the U.S. state of Michigan, has been producing swashplatefi xed-displacement compressors since 1990. In December2005, TACG, which is located in the U.S. state of Georgia,began production of variable-displacement compressors as oursecond North American compressor production base. Althoughfi xed-displacement compressors are currently the mainstreamcompressor used in North America, we anticipate that greater globalenvironmental awareness will drive increased demand for variable-Worldwide Manufacturing Bases of Car Air-Conditioning CompressorTDDKDNTSToyota IndustriesCorporationDWHIYSDTACKMACITACGACTISSUBROSDNIAConsolidated subsidiariesLicensed manufacturersDNBRToyota Industries produces compressors through a global tripolar structure encompassing Europe, the United States and Asia (including Japan), established through directinvestments. We also license production in Asia (excluding Japan) and South America. By carrying out production near our markets, we believe we are better able to supplyproducts precisely tailored to local market needs while reducing shipment costs and exchange rate risks.28 Toyota Industries Corporation Annual Report 2007

Car Air-Conditioning Compressordisplacement compressors, which enable excellent energy effi ciency.In Europe, where environmental awareness is high, TD DeutscheKlimakompressor GmbH (TDDK) has been producing swash-platevariable-displacement compressors since 2000.In China, where the automobile market is recording remarkablegrowth, we began producing variable-displacement compressors atTACK in April 2006.As these examples illustrate, Toyota Industries is makingsignifi cant progress in further strengthening its global productionstructure.Refl ecting our determination to contribute to reducing theenvironmental load and reusing resources, we also remanufacturecompressors for the aftermarket (auto replacement parts andsupplies market) at Texas-based ACTIS Manufacturing, Ltd., LLC inthe United States.Regarding future trends, we foresee increased demand forcompressors in line with a rise in automobile sales. Consequently,Toyota Industries will push forward with initiatives to upgrade itsglobal production structure to respond to customer needs for globallyoptimal production and procurement.TopicsObu Plant Renovation CompletedIn fi scal 2007, we completed the phased renovation ofthe Obu Plant in Japan that began in 2000. The ObuPlant carries out integrated production encompassingthe manufacture of molds for aluminum die-castproducts and aluminum die casts as well as componentprocessing. The Obu Plant plays a key role both as theMaterials Development Center and as the mother plantfor production bases in Japan and overseas.* Remanufacturing involves repairing and recycling products to give them the same functions as newproducts by overhauling rebuilt, used and malfunctioning products and exchanging components.Fixed-Displacement Type10S17 compressor(Swash-plate type)SCS06 com pres sor(Scroll type)SV07 com pres sor(Vane type)Continuous Variable-Displacement TypeFor Hybrid Vehicles7SBU16 compressor(Swash-plate type)7SEU17 com pres sor(Externally controlled,clutchless type)ES27 electric compressor(Hermetic scroll type)ES34 electric compressor(Hermetic scroll type)Toyota Industries Corporation Annual Report 200729

Focus on BusinessAutomobileA Key Role inToyota MotorCorporation’sGlobal ProductionToyota Industries supports Toyota MotorCorporation’s (TMC) global operations byassembling compact and midsize automobilesas one of the Toyota Group’s vehicle assemblyarms. We also contribute to TMC’s operationson a multiplicity of other fronts. These includeproactive participation in TMC’s new cardevelopment, development and productionof diesel engines as well as power electronicsand other car electronics products, andmanufacture of stamping dies. In January 2007,we established the Automotive Headquarters tofurther strengthen this segment as a pillar of ouroperations on par with the Materials HandlingEquipment Segment.Automotive HeadquartersVehicle DivisionMachinery &Tools Sub-Div.Engine DivisionElectronicsDivision30 Toyota Industries Corporation Annual Report 2007

AutomobileVehicleManufacturing TMC’sGlobal ModelsToyota Industries has compiled a stellar record ofachievement during the 40 years since commencingvehicle production under consignment from TMCin 1967. At present, Toyota Industries manufacturestwo Toyota models, the Vitz (Yaris outside Japan) andthe RAV4 for overseas markets. Additionally, as anautomobile body manufacturer, we participate in thedevelopment of new Toyota vehicles, handling boththe development and design of automobile bodies.Record-High Production of 350,000 VehiclesAchievedIn fi scal 2007, Toyota Industries achieved record-high production of350,000 vehicles, which was supported by robust sales of the RAV4in overseas markets.Since commencing vehicle assembly operations underconsignment from TMC in 1967, Toyota Industries has producedsuch vehicles as the Starlet, Sprinter Carib and Corolla (van). In 1999,we started manufacturing the Vitz as the successor model of theStarlet. The fi rst-generation Vitz (Yaris) sparked an expansion in thecompact car market in Japan and subsequently attained a positionas a global-standard compact car. Undergoing a full model change in2005, the second-generationVitz (Yaris) integrates the Vehicle Production(Thousand units)most-advanced safety and400environmental technologies,earning extensive acclaim300worldwide as a compact car ofthe highest quality. Sales of the200Vitz (Yaris) were launched in theUnited States in 2006.100Toyota Industriescommenced production of the0RAV4 in 2001. RelaunchedFY 03 04 05 06 07upon a full model change in 2005, the third-generation RAV4 offersan even roomier interior, superb driving performance and worldclassenvironmental and safety performance. Of particular note, weparticipated in TMC’s development project for the RAV4 for Europefrom the initial phase. Moreover, the RAV4 is also equipped withToyota Industries’ AD diesel engine produced at the Hekinan Plant.A Vital Role in TMC’s Global OperationsToyota Industries’ vehicle assembly operations have also beenlauded for maintaining the Toyota Group’s top-class quality, cost anddelivery (QCD) and capabilities in making quick production launches.In fi scal 2007, we received the Superior Quality Performance Awardfrom TMC in recognition of our effi cient, high-quality productioncarried out under the Toyota Production System as well as for ourdaily improvement activities.Annual global production of the Vitz (Yaris) tops more than500,000 vehicles, more than one-third of which is produced byour Nagakusa Plant. Meanwhile, production of the RAV4 is carriedout at the Nagakusa Plant and TMC’s Tahara Plant. The NagakusaPlant is also supporting preparations for production at Toyota MotorManufacturing Canada Inc., which is set to begin production of theRAV4 in 2008.Determined to continue playing an important role in TMC’sglobal business, Toyota Industries intends to maintain its top-levelQCD, while expanding its business domains that contribute toTMC, including further increasing its role in the development of newvehicles and supporting the quick start-up of new vehicle productionat overseas production plants.TopicsToyota Industries Receives SuperiorQuality Performance AwardIn February 2007, the Vehicle Division and Machinery &Tools Sub-Division (stamping dies) received the SuperiorQuality Performance Award from TMC. This marks theseventh time the Vehicle Division has earned this award inthe past 10 years and the eighth time for the Machinery &Tools Sub-Division over the same period.VehiclesVitz(Yaris outside Japan)RAV4Toyota Industries Corporation Annual Report 200731

Focus on BusinessEngineSharp Increase inDiesel Engine Sales LiftProduction to RecordHighToyota Industries’ Engine Business manufacturesdiesel and gasoline engines. In addition tomanufacturing engines for vehicles underconsignment from TMC, Toyota Industriesmanufactures engines for lift trucks and othermaterials handling equipment. As another importantactivity, we engage in the joint development of newdiesel engines with TMC.2007 we constructed a new testing center to bolster our dieselengine development capabilities. Looking ahead, we will seek tomake further contributions through actively participating in the jointdevelopment and production of diesel engines with TMC.Toyota Industries also engages in broad-ranging production ofengines for industrial equipment, including engines for lift trucks thatoffer high power output and excellent environmental performance,as well as engines for other materials handling equipment and gasengine-driven heat pumps. Toyota Industries’ engines represent thesource of competitiveness of its lift trucks, which have secured theNo. 1 global market share.At our production bases worldwide, we also manufacture abroad assortment of engine parts that include engine blocks, heads,camshafts and crankshafts.Favorable Results for New Diesel Engineswith Outstanding Environmental PerformanceIn fi scal 2007, Toyota Industries achieved record-high sales of490,000 engines (unit sales to outside customers) on the back ofincreased sales of AD diesel engines fi tted in TMC’s RAV4 for theEuropean market and the Lexus IS as well as KD diesel engines forTMC’s Innovative International Multi-Purpose Vehicle (IMV).Our new diesel engines, noted for their superb environmentalperformance, are particularly attracting attention. Toyota Industriesmanufactures AD diesel engines jointly developed with TMC, whichcomply with Europe’s strict EURO 4 environmental regulations onexhaust emissions. The advantages of diesel engines in comparisonwith gasoline engines lie in high fuel effi ciency and low CO2emissions—a key reasondiesel engines are in highdemand in Europe. In theNorth American market aswell, the number of pickupEngine Production(Thousand units)500400trucks fi tted with dieselengines is expected to rise 300amid rapidly increasing energy200prices.Refl ecting our fi rm100commitment to becoming0a top manufacturer ofFY 03 04 05 06 07diesel engines within theToyota Group, in fi scalGasoline engineDiesel engineNew Testing centerDeveloping Global Business throughDomestic and Overseas CollaborationOur engine production operations have garnered strong praise notjust for responding quickly to changes due to fl exible production linesutilizing automatic guided vehicles but also for the ability to start upproduction in short time periods.Following the 1994 establishment of Toyota Industry (Kunshan)Co., Ltd. (TIK), an engine foundry parts production company in China,we have steadily strengthened our engine production capabilitiesoverseas. At present, we operate production bases for engines andengine parts at TIK and Toyota Industry Automotive Parts (Kunshan)Co., Ltd. (TIAP) in China, Kirloskar Toyoda Textile Machinery PrivateLimited (KTTM) in India and Toyota Motor Industries Poland Sp.zo.o.(TMIP) in Poland, allowing us to further contribute to TMC’s globaldevelopment.In Japan, the Hekinan Plant (engine assembly and partsprocessing), together with the Kyowa Plant (engine parts processing)and Higashichita Plant (foundry parts, aluminum die casts, engineassembly and parts processing) function as mother plants foroverseas production bases in providing support for plant start-upsand operations. Through this global cooperation, we believe we areable to assure QCD at the highest levels and raise productivity ateach of our overseas plants.32 Toyota Industries Corporation Annual Report 2007

AutomobileWorldwide Manufacturing Bases of EngineTMIPManufacture of diesel engines forTMC’s plants in the U.K. and TurkeyTIKManufacture of foundry parts forJapan and manufacturing bases inPoland and IndiaHekinan PlantManufacture of diesel andgasoline enginesKyowa PlantManufacture of enginepartsKTTMManufacture of transmission parts forTKAPTIAPManufacture of foundry parts forenginesHigashichita PlantManufacture of foundry partsManufacture and supply of diesel engines for IMV ProjectEngines2AD diesel engine(Displacement: 2.2 liters, usedin the Avensis, RAV4, CorollaVerso and Lexus IS)2KD diesel engine(Displacement: 2.5 liters, usedin the Hilux Vigo)2AZ-FE gasoline engine(Displacement: 2.4 liters, used inthe Estima)1FZ-FE gasoline engine(Displacement: 4.5 liters, used inthe Land Cruiser)4Y gasoline engine(Displacement: 2.2 liters, used inlift trucks)Cylinder block forAD diesel engineCylinder head forAD diesel engineToyota Industries Corporation Annual Report 200733

Focus on BusinessCar ElectronicsStamping DiesManufacturing Key Partsfor Hybrid Vehicles andStamping DiesUtilizing power electronics circuit technologiesand electric drive system development capabilitiescultivated through its experience with electric lifttrucks, Toyota Industries develops and manufactureselectronic components and devices for automobiles,including hybrid vehicles. Toyota Industries alsoboasts an abundance of experience in manufacturinghigh-quality automotive stamping dies.Newly Developed DC-DC Converters for theToyota Camry HybridFitted in TMC’s Prius, Toyota Industries’ DC-DC converters are keydevices for hybrid vehicles. These converters down-convert the highvoltagedirect current (DC) of the main battery to a lower voltage torecharge the auxiliary battery and supply power for lights, wipers,the horn and other in-car devices. We also develop and manufacturecompact, low-cost DC-DC converters for electric power steeringsystems for hybrid vehicles.A wide selection of Toyota Industries’ products also includesDC-AC inverters for cars with hybrid and conventional engines. Theinverter is capable of converting currents into the same voltage ashousehold electricity, thereby allowing the use of various householdelectronic appliances.In fi scal 2007, Toyota Industries began shipments of numerousproducts through a serialization of existing products such as DC-DC converters for the Camry Hybrid for North America and DC-DCconverters for electric power steering (EPS) for the Lexus LS.Amid growing worldwide interest in environmental protection,we expect that demand for hybrid vehicles will steadily increase. Inpreparing to meet this demand, we are augmenting an advanceddevelopment structure. This will enable us to develop not onlyproducts for hybrid vehicles but also controllers for electric lift trucks,power supply devices for hybrid lift trucks and others that will raisethe competitiveness of our materials handling equipment and textilemachinery. To expand our selection of automotive products, we areplanning to put more energy into the development of key componentsin addition to the current lineup of auxiliary components such asconverters. We are also pressing forward with the preparations formass production at a new plant in order to handle expansion of thehybrid vehicle market.34Toyota Industries Corporation Annual Report 2007

AutomobileMajor Car Electronics ProductsDC-DC converter for EPSFitted in the Harrier Hybrid (RX 400h)DC-AC inverterFitted in the TacomaDC-DC converterCamry HybridDC-DC converter for EPSLexus LSNew productsDC-DC convertersfor EPSDC-DC converterFitted in the PriusDC-DC convertersDC-AC invertersFY20032004 20052006200720082011Car ElectronicsDC-DC converter for the PriusDC-DC converter for electricpower steering for the HarrierHybrid (RX 400h)DC-DC converter forCamry HybridDC-AC inverter forthe Tacoma (400W)Manufacture and Quick Delivery of High-Quality Automotive Stamping DiesToyota Industries undertakes the design and manufacture ofautomotive stamping dies mainly for TMC vehicles (Toyota andLexus brands) as well as stamping dies for our own lift trucks andother materials handling equipment. Combining advanced skills withleading-edge simulation technologies, Toyota Industries has earnedhigh marks from customers for quick delivery times and top quality.In fi scal 2007, we won TMC’s Superior Quality Performance Awardin recognition of the high quality of our stamping dies as well as ourongoing daily improvement activities.We are also making important progress in bolstering ouroverseas operations. Toyota Industries established Lio Fung Tool &Die (Kunshan) Co., Ltd. (LFTD, in which Toyota Industries has a 35%stake) in Kunshan, China, as a joint venture with Taiwan-based LiohoMachine Works, Ltd. LFTD produces stamping dies for TMC vehiclesmanufactured in China as well as for Toyota Industries lift trucks.Trim die for engine hoodDraw die for rear doorToyota Industries Corporation Annual Report 200735

Focus on BusinessLogisticsSupporting theOptimization ofOverall LogisticsToyota Industries is engaged in proposingoptimal overall logistics solutions fromcustomers’ perspectives. We handle customers’logistics by combining our extensive businessexperience in lift trucks, automated storage andretrieval systems and other materials handlingequipment with our production and logisticsknow-how, as well as the Toyota ProductionSystem cultivated in pursuit of the most efficientmethods of manufacturing. In so doing, wepropose so-called market-in logistics that supplyonly “what is needed, when it is needed, and inthe amount needed!”36Toyota Industries Corporation Annual Report 2007

LogisticsMaking Optimal Logistics Proposals as aGroup of SpecialistsIn fi scal 2007, net sales of the Logistics Segment increased sharplyby 37% to ¥89.4 billion.Toyota Industries’ Logistics Business is centered on the threebusiness pillars of planning, design and operation of distributioncenters, high value-added services and distribution of automotiveparts. Planning, design and operation of distribution centersare carried out mainly through the Advanced Logistics Division.Specifi cally, this business aims to reduce companies’ logistics coststhrough Advanced Logistics Solutions Co., Ltd. (ALSO), a whollyowned subsidiary, as well as through joint ventures with customersand logistics operators. Meanwhile, high value-added services areprovided through two subsidiaries, Asahi Security Co., Ltd. (AsahiSecurity) and Wanbishi Archives Co., Ltd. (Wanbishi Archives),whereas the Taikoh Transportation Group handles distribution ofautomotive parts.Since entering the logistics solutions fi eld in 2002, we haveachieved continuous growth and development. We intend to aimfor higher added value and effi ciency. To this end, we are pursuingsynergies internally and externally by strengthening collaborationwith the Materials Handling Equipment Business, which handles lifttrucks and automated storage and retrieval systems, as well as bysharing logistics businesses with our customers. In tandem, we arealso focusing our efforts on reinforcing the earnings structure of theLogistics Business through continuous improvements.In fi scal 2007, we acquired a 50.5% stake from Nissen Co., Ltd.(Nissen), a leading mail-order company, in Nissen Logistics ServiceCo., Ltd., which became a subsidiary and was renamed Mail &e Business Logistics Service Co., Ltd. (Mail & e Business Logistics).This move refl ects Nissen’s decision to utilize Toyota Industries’logistics solutions in an effort to improve this area of operationsby discontinuing its policy of handling logistics internally. With theacquisition of this stake in Mail & e Business Logistics, ToyotaIndustries and Nissen will work together in promoting mail-orderlogistics reforms by optimizing the fl ow of the entire logistics processfrom procurement to delivery to customers.Business Models Offering High Value-AddedServicesToyota Industries regards logistics as a process that continues until aproduct passes the checkout counter at a retail store and is deliveredto the customer. We are building proprietary business modelsthat aim to optimize this overall fl ow, which involves not only themanagement of the fl ow of “goods” but also the fl ow of “cash” andthe fl ow of “information.”As part of these efforts, Asahi Security, which became asubsidiary in March 2005, offers cash management outsourcingservices including cash collection and cash proceeds managementservices for the retail, services and transportation sectors. WanbishiArchives, in which we acquired a stake in January 2006, provideshighly advanced risk-related services that include storing andmanaging important data for companies and government agenciesand providing data backup services in the event of disasters. In May2007, we raised our stake in Wanbishi Archives to 100%, makingit a wholly owned subsidiary, as we aim to expand this business bybenefi ting from such trends as the implementation of the Japaneseversion of the U.S. Sarbanes-Oxley Act (J-SOX) and the PersonalInformation Protection Act.Using these wide-reaching service-related technologies asa foundation, we are fi rmly poised to expand the scope of ourhigh value-added services that address the outsourcing needs ofcompanies.Business Model for Wanbishi ArchivesCustomerWanbishi ArchivesStorage centerRequest for storageFAXTELPCRequest for retrievaland/or delivery ofrequired documentsDistribution by e-mailor fax (or via Website)InternetReceiving requestsMail distributionHigh-volume digitizationDigitizationRetrieveSearcheddocumentsLedgers/sales promotionmaterialsDocument boxesWorksiteDeliveryStorage/deliveryDataDestruction andrecycling centerDeliveryData destructionTransportationUnnecessarydocumentsToyota Industries Corporation Annual Report 200737

Focus on BusinessTextile MachinerySales of Air-JetLooms Surpass10,000 Units to anAll-Time HighThe history of the Toyota Group began with theinvention of an automatic weaving machine byToyota Industries founder Sakichi Toyoda. Witha long history dating back to the origin of ToyotaIndustries, the Textile Machinery Business, as anindustry leader, has built an integrated structurethat encompasses functions ranging fromdevelopment to sales. Our air-jet looms havemaintained the top global market share, whileour ring spinning frames, roving frames andother spinning machinery have garnered highacclaim from customers worldwide.38Toyota Industries Corporation Annual Report 2007

Textile MachineryWeaving MachineryToyota Industries manufactures and sells two types of weavingmachinery: air-jet looms, which insert weft yarns using air, and waterjetlooms, which use water for the same purpose. Our state-of-theartweaving machinery, excellent in basic performance requirementsfor high speed and reliability, incorporates such advanced functionsas monitoring and remote setting via the Internet, earning high praisefrom customers around the world.In fi scal 2007, sales of air-jet looms, our mainstay product,reached a record-high 10,600 units, supported by a large increasein sales in China. Up until roughly fi ve years ago, total worldwidedemand for air-jet looms stood at around 10,000 units, but thisdemand subsequently surged to over 20,000 units from around2002. This increase was driven by a confl uence of several factors,including improvements in productivity for our air-jet looms anddevelopment of air-jet looms that enable the production of wovenfabrics previously diffi cult to produce, in addition to a shift in textileproduction to China. Consequently, Toyota Industries suppliedroughly half of all global demand in fi scal 2007. In March 2007, wefurther expanded our product offerings when we initiated productionof a new water-jet loom. Rounding out our product lineup, we alsomanufacture and sell such preparatory machinery for weaving assizing machines for yarns.Weaving MachineryJAT710 air-jet loomLWT710 water-jet loomMackeeSizing machine for spun yarnFilamasterSizing machine for filament yarnSpinning MachineryThe Spinning Machinery Business meets a broad range of customerneeds by offering an extensive lineup of spinning machinery, includinghigh-speed ring spinning frames and roving frames, capable of bothspinning high-quality yarns and providing superior productivity. Wealso produce and sell combers and drawing frames.Overseas, Kirloskar Toyoda Textile Machinery Private Limited(KTTM), our subsidiary in India, manufactures ring spinning frames forthe local market.Spinning MachineryRX240NEW ring spinning frame FL100 roving frame DX8 drawing frameVC5A comberTopicsKTTM Marks its 10th AnniversaryIn 2006, KTTM marked the 10th anniversary of its establishment in India. Foundedas a joint venture with India’s Kirloskar Group, KTTM began production and sales ofspinning frames in 1997. In 2004, KTTM commenced production of aluminum diecastcomponents for manual transmissions for Toyota Motor Corporation’s InnovativeInternational Multi-Purpose Vehicle Project. KTTM further expanded its scope ofactivities in 2006 when it began engaging in after-service and sales of lift trucks in theBangalore District.Toyota Industries Corporation Annual Report 200739

Focus on BusinessElectronicsOn the Cutting Edgeof Providing High-Quality ElectronicsProductsToyota Industries engages in the manufactureof semiconductor package substrates throughTIBC Corporation (TIBC) *1 . We are also activelyinvolved in the manufacture of low-temperaturepolysilicon TFT-LCD panels at ST Liquid CrystalDisplay Corp. (STLCD) *2 and ST Mobile DisplayCo., Ltd. (STMD) *3 . Utilizing our expertise rootedin the Toyota Production System—a sourceof Toyota Industries’ competitiveness—wequickly provide a stable supply of high-qualityelectronics products.*1 A joint venture with Ibiden Co., Ltd. (Ibiden)*2, *3 Joint ventures with Sony Corporation (Sony) accounted for as equity-method affi liates,with Toyota Industries holding a 50% stake in STLCD and a 20% stake in STMD.40Toyota Industries Corporation Annual Report 2007

ElectronicsPlastic Package Substrates forHigh-Performance Semiconductors andSubstrates for IC CardsTIBC manufactures leading-edge semiconductor packagesubstrates to enable more compact, lighter weight PCs, mobilephones and other electronic devices. Specifi cally, TIBC currentlymanufactures plastic package substrates, including fl ip chip (FC)package substrates and wire bonding package substrates, for highperformancesemiconductors, as well as fl exible printed circuit (FPC)substrates for IC cards. TIBC is able to supply high-quality, high-performance products by achieving synergies derived from thequality management and production technology capabilities of ToyotaIndustries and Ibiden, an industry leader in this fi eld.TIBC’s semiconductor plastic package substrates are soldthrough Ibiden to the world’s premier semiconductor manufacturersand semiconductor-packaging companies for such applications asPCs and mobile phones. At the same time, TIBC’s FPC substratesare also marketed through Ibiden to SIM card and smart cardsuppliers mainly in Europe and China for integration into credit cardsand telephone cards.TIBCWire bondingpackage substrateFlip chippackage substrateFlexible printed circuitpackage substrateLow-Temperature Polysilicon TFT-LCD Panelsfor Mobile DevicesSTLCD and STMD manufacture small- and medium-sized lowtemperaturepolysilicon (poly-Si) TFT-LCD panels, primarily for suchapplications as video and digital still cameras, and mobile phones.These TFT-LCD panels are noted for such outstanding basic featuresas high-quality, high-resolution images and low energy consumption.In addition, Sony is promoting its system-on-glass technology thatintegrates the display device and its driver circuits onto a single glasssubstrate (panel). This technology enables highly reliable, lightweightand miniaturized display modules, and in turn contributes to bothcompanies’ proactive efforts to develop display devices for compact,lightweight mobile products.Through synergies that fully utilize Sony’s technologicalcapabilities and Toyota Industries’ production technologies, STLCDand STMD have built optimal production systems for creatingglobally competitive products. The products manufactured by thesecompanies are used in the mobile devices of Sony and other hightechdevice manufacturers worldwide.Since commencing mass production in 1999, STLCD hasachieved cumulative production of 200 million panels as of August2006. STMD, our second manufacturing base after STLCD, beganmass production of panels on schedule in April 2006.ST Liquid Crystal Display Corp.STLCDLow-temperature polysilicon TFT-LCDsToyota Industries Corporation Annual Report 200741