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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