Sustained Innovation and Creativity - Toyota Industries Corporation

Looking AheadJapanese MarketThe year 2006 marks the 50th anniversary since thecommencement of sales of TOYOTA-brand lift trucks in Japan.During this commemorative year, TMHJ expects continuedsolid growth in the domestic lift truck market.In the future, TMHJ will strive to expand sales and marketshare by offering products and services that we hope willdeliver even greater customer satisfaction. In line with theseefforts, TMHJ plans to carry out proposal-based marketingthat offers solutions that accurately address customer needsas well as promote fl eet management contracts to majorcustomers spanning a wide range of geographic regions. InSeptember 2006, the series of 1- to 3.5-ton internal combustioncounterbalanced lift trucks with higher standards for bothsafety and environmental features will be reintroduced inJapan after a full model change. TMHJ believes this will serveas the tailwind to further penetrate the market. Also, TMHJ willactively market and sell a wide lineup of materials handlingsystems that include racks, automatic guided vehicle systemsand automated storage and retrieval systems.North American MarketIn 2006, TMHNA anticipates the North American market formaterials handling equipment will refl ect the overall economicoutlook, with a slowing pace of growth. Both the TOYOTA andRaymond brands are well situated to take advantage ofthese market conditions to expand their industry leadershippositions. We hope to strengthen the TOYOTA brand’s positionas the number-one selling brand in North America withthe introduction of the much-anticipated 8-Series line, withinternal combustion, pneumatic and cushion tire modelsthat range from 3,000 to 6,500 pounds. The 8-Series has beendesigned to build on Toyota’s strengths with increased visibility,improved ergonomics, enhanced productivity and superiordurability, all while maintaining its position as the industry’ssafety leader. In January 2007, Toyota will exhibit at ProMat,the largest materials handling show in North America, whereconsumers will get their fi rst look at the 8-Series. We hope tosolidify the Raymond brand’s leadership role in the warehouseand distribution market with products featuring improvedperformance and reliability at reduced cost of ownership,expanding the range of products with the advantages ofAC power. Both of TMHNA’sbrands will seek to expand fl eetservices and fl eet managementofferings in response to demandby large customers who want tooptimize their lift truck fl eetsand control costs.The year 2006 willmark a number of8FGU25signifi cant events for TMHNA. Toyota will commemorate its 40thanniversary of establishing operations in North America andRaymond celebrates its 85th anniversary. Additionally, in early2007 the Raymond brand expects to ship its 300,000th lift truck.TMHNA will continue to accelerate the implementationof the Toyota Production System (TPS) at its manufacturingfacilities in Columbus, Indiana; Greene, New York; Muscatine,Iowa; and Brantford, Ontario, Canada. As a result, we willfurther improve our already strong reputation for productquality and reliability. In conjunction with TPS, TMHNA operatesunder a global charter that promotes environmentalresponsibility throughout the entire company. Of signifi cantimportance is the exclusive emissions system employed bythe 8-Series that not only surpasses 2007 Federal EPA emissionsstandards, but also meets California’s stringent 2010 emissionstandards—three years early.European MarketFor 2006, the general growth trend in the European market isexpected to continue, albeit at a somewhat lower rate thanthe last couple of years. Most regional areas are expectedto show growth, especially in Eastern Europe. On the otherhand, an overall increase in GDP levels in Western Europeis expected to fuel higher market demand in the materialshandling industry in these markets as well.In line with continued integration of its Europeanorganizations, TMHE expects to reap additional synergies indifferent areas, further increasing its competitiveness to thebenefi t of its customers.Other International MarketsIn 2006, TMHI anticipates continued growth in other keyinternational markets, with strong growth expected indesignated markets, along with business expansion in theautomotive sector and other industries in each region.In line with ongoing growth in important markets such asChina and Australia, TMHI plans to further strengthen its levelsof activity and local operations. TMHI aims to ensure that itsreputation for quality products is complemented by strongsupport capabilities, including maintaining an emphasis onproviding sophisticated systems solution sales for the morecomplex warehousing installations planned by many of itsinternationally active customers in third party logistics andwarehousing sectors.It is also clear that key markets in the Middle East, Asia andSouth America require ever-higher levels of sales and servicesupport, and the focus will remain directed toward satisfyingthese needs. Backed by the current Toyota/BT sales network,TMHI approaches the market with a determination to forgedeeper relationships and develop stronger ties with its dealersand customers.Toyota Industries Corporation Annual Report 200621