Sustained Innovation and Creativity - Toyota Industries Corporation

Logistics SegmentTextile Ma chin ery SegmentOthers SegmentBusiness OverviewIn fi scal 2006, the Logistics Segment wasestablished as a new segment, integratinginto a single segment the distribution-relatedbusinesses (Logistics Solutions Business andTransportation Business) previously included inthe Others Segment. Toyota Industries expectsthat these businesses will grow to becomeone of its core businesses in the future. Inparticular, the Logistics Solutions Business offersa unique business model that optimizes theoverall fl ow of goods, money and informationto comprehensively address customers’logistics needs. In fi scal 2006, net sales of theLogistics Segment amounted to ¥65.1 billion.Operating income was ¥1.6 billion.Business OverviewThe Textile Machinery Segment producesand sells spinning and weaving machinery.Spinning machinery includes the manufactureand sales of ring spinning frames, rovingframes and combing machines, whileweaving machinery involves the manufactureand sales of air-jet looms and water-jet loomsalong with such preparatory machinery forweaving as sizing machines and automaticdrawing-in machines. In fi scal 2006, net salesof the Textile Machinery Segment were ¥49.8billion. The segment posted an operating lossof ¥70 million.Business OverviewThe Others Segment consists mainly of newerbusinesses that Toyota Industries has enteredrelatively recently and that are thus still smallin scale. At the core of this segment is TIBCCorporation, a joint venture with Ibiden Co.,Ltd. that produces semiconductor packagesubstrates. Although it is an equity-methodaffi liate, we regard ST Liquid Crystal DisplayCorp. (STLCD)*, a joint venture with SonyCorporation that produces low-temperaturepolysilicon TFT-LCDs, as part of this segment.In fi scal 2006, net sales of the Others Segmentamounted to ¥49.0 billion and operatingincome was ¥3.7 billion.* As STLCD is an affi liate and not a consolidatedsubsidiary, its sales and operating income (loss) arenot included in the consolidated fi gures, but areaccounted for by the equity method.Net SalesNet SalesNet Sales(¥ Billion)80604065.1(¥ Billion)80604046.043.949.8(¥ Billion)80604071.177.449.02020200FY060FY0405060FY040506Operating Income(¥ Billion)8Operating Income(¥ Billion)6Operating Income(¥ Billion)86465.85.24243.720FY1.6060(2)FY0.104(0.8)05(0.1)0620FY040506Main Services• Transportation services• Logistics planning• Operation of distribution centers• Total cash managementoutsourcing, etc.Main Products• Ring spinning frames• Roving frames• Drawing frames• Air-jet looms• Water-jet looms• Sizing machines, etc.Main Products• Wire bonding package substrates• Flip chip package substrates• Flexible printed circuit (FPC)substrates• Low-temperature polysiliconTFT-LCDs, etc.Wire bondingpackage sub strateFPC sub strateRX240NEWRing spinning frameJAT710Air-jet loomLogistics solutionsLow-temperaturepolysilicon TFT-LCDsToyota Industries Corporation Annual Report 200615