2023 Annual Financial Report E

Annual Financial Report
2023
For the Year Ended March 31, 2023
Financial Summary P1
Management's Discussion and Analysis of
P2
Financial Condition and Results of Operations
Consolidated Statement of Financial Position P12
Consolidated Statement of Profit or Loss P14
Consolidated Statement of Comprehensive Income P15
Consolidated Statement of Changes in Equity P16
Consolidated Statement of Cash Flows P18
Notes to Consolidated Financial Statements P19
Report of Independent Auditors End
TOYOTA INDUSTRIES CORPORATION
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Financial Summary
Toyota Industries Corporation and its consolidated subsidiaries
< IFRS >
FY2019 FY2020 FY2021 FY2022 FY2023
Net sales (Millions of yen) 2,214,946 2,171,355 2,118,302 2,705,183 3,379,891
Operating profit (Millions of yen) 134,684 128,233 118,159 159,066 169,904
Profit (Millions of yen) 159,778 150,187 141,435 185,350 198,716
Profit: attributable to owners of the parent

152,748 145,881 136,700 180,306 192,861
(Millions of yen)
Comprehensive income (Millions of yen) (16,789) 10,474 854,098 751,823 (26,348)
Share of equity attributable to owners

2,479,718 2,438,807 3,236,038 3,928,513 3,837,416
of the parent (Millions of yen)
Total assets (Millions of yen) 5,261,174 5,279,653 6,503,986 7,627,120 7,821,185
Equity per share: attributable to owners

7,986.59 7,854.87 10,422.64 12,653.04 12,359.66
of the parent (Yen)
Earnings per share－basic (Yen) 491.97 469.85 440.28 580.73 621.17
Earnings per share－diluted (Yen) 491.97 469.85 440.28 580.73 621.17
Ratio of equity attributable to owners

47.13 46.19 49.75 51.51 49.06
of the parent to total assets (%)
Return on equity attributable to owners
6.07 5.93 4.82 5.03 4.97
of the parent (%)
Price-to-earnings ratio (Times) 11.28 11.02 22.39 14.58 11.83
Net cash provided by operating activities

270,306 313,199 382,386 321,085 194,964
(Millions of yen)
Net cash used in investing activities
(395,000) (182,598) (404,164) (229,805) (427,642)
(Millions of yen)
Net cash provided by (used in) financing
40,467 (7,094) (105,477) (92,114) 183,690
activities (Millions of yen)
Cash and cash equivalents at end of period
239,140 358,144 238,248 247,085 202,731
(Millions of yen)
Number of employees
64,641 66,478 66,947 71,784 74,887
[Average number of part-time employees,
[12,625] [12,788] [11,396] [12,923] [14,358]
not included in number of employees above]
(Notes) 1. Toyota Industries Corporation and its subsidiaries have adopted International Financial Reporting
Standards ("IFRS") for the consolidated financial statements of the annual report.
2. Diluted earnings per share is the same amount with basic earnings per share because there are no dilutive
shares.
3. Number of employees is the number of workers (excluding people dispatched from the Group to outside the
Group, but including people dispatched from outside the Group to the Group).
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Management's Discussion and Analysis of Financial Condition and Results of Operations
The following Management's Discussion and Analysis of Financial Condition and Results of Operations is based on
information known to management as of June 2023.
This section contains projections and forward-looking statements that involve risks, uncertainties and assumptions. You
should be aware that certain risks and uncertainties could cause the actual results of Toyota Industries Corporation and its
consolidated subsidiaries to differ materially from any projections or forward-looking statements. These risks and
uncertainties include, but are not limited to, those listed under "Risk Information" and elsewhere in this annual report.
The fiscal year ended March 31, 2023 is referred to as FY2023 and other fiscal years are referred to in a corresponding
manner. All references to the "Company" herein are to Toyota Industries Corporation on a stand-alone basis and
references to "Toyota Industries" herein are to the Company and its 271 consolidated subsidiaries.
1. Result of Operations
(1) Operating performance
In FY2023 (ended March 31, 2023), although the global economy showed signs of recovery thanks to the easing of
restrictions to prevent the spread of COVID-19, there remains many economic uncertainties. These include global
inflation triggered by soaring raw material and energy prices due to the conflict in Ukraine as well as heightened
concerns over an economic recession arising from higher interest rates in various countries. Meanwhile, the recovery
of the Japanese economy was moderate mainly due to soaring prices accompanied by the rapid depreciation of the
yen. Under these circumstances, Toyota Industries has been striving to expand sales by appropriately responding to
customer needs and the movements of each market, such as the automobile electrification and logistics automation.
As a result, total consolidated net sales amounted to 3,379.8 billion yen, an increase of 674.7 billion yen, or 25%, from
the previous fiscal year.
(2) Operating performance highlights by business segment

Business results by business segment are as follows.
Net sales for each segment do not include inter-segment transactions.
(Automobile)
The Automobile market remained is stable when compared with the previous fiscal year in Japan. However, the
automotive market expanded elsewhere in the globe. Expansions came primarily in China and North America. Amid
such operating conditions, net sales of the Automobile Segment totaled 957.8 billion yen, an increase of 165.0 billion
yen, or 21% from the previous fiscal year. Operating profit amounted to 34.6 billion yen, an increase of 1.6 billion yen,
or 5%.
Within this segment, net sales of the Vehicle Business amounted to 83.1 billion yen, on par with the previous fiscal year,
due to decreases in sales of Toyota RAV4 for Japan offset by a decrease abroad.
Net sales of the Engine Business totaled 322.4 billion yen, an increase of 54.8 billion yen, or 20%, mainly from an
increase in sales of gasoline engines.
Net sales of the Car Air-Conditioning Compressor Business totaled 429.7 billion yen, an increase of 73.6 billion yen, or
21%, due to an increase in North America and Europe.
Net sales of Electronics Parts and Others Business totaled 122.5 billion yen, an increase of 37.0 billion yen, or 43%,
attributable primarily to an increase in sales of battery and DC-DC converters.
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(Materials Handling Equipment)
The Materials Handling Equipment market were sluggish in Europe and other regions, and shrank worldwide. Amid this
operating climate, net sales of the Materials Handling Equipment Segment totaled 2,283.8 billion yen, an increase of
494.4 billion yen, or 28%. Sales of lift trucks, a mainstay product of this segment, increased primarily in North America.
Operating profit amounted to 121.8 billion yen, an increase of 8.2 billion yen, or 7%.
(Textile Machinery)
The Textile Machinery market remained steady in Asia, including the primary market - China. Net sales of the Textile
Machinery Segment totaled 84.3 billion yen, an increase of 15.1 billion yen, or 22%, due mainly to an increase in sales
of spinning machinery and yarn quality measurement instruments. Operating profit amounted to 7.8 billion yen, an
increase of 2.3 billion yen, or 41%.
(3) Operating profit

Operating profit for FY2023 was 169.9 billion yen, an increase of 10.9 billion yen, or 7%, from the previous fiscal year.
This was mainly owing to an increase in sales, the impact of exchange rate fluctuations and further advances in cost
reduction efforts throughout the Toyota Industries Group, despite an increase in raw material costs, labor costs and
logistic costs.
(4) Profit before income taxes

Profit before income taxes amounted to 262.9 billion yen, an increase of 16.8 billion yen, or 7%, from the previous
fiscal year.
(5) Profit attributable to owners of the parent

Profit attributable to owners of the parent totaled 192.8 billion yen, an increase of 12.5 billion yen, or 7%, from the
previous fiscal year.
Earnings per share－basic was 621.17 yen compared with 580.73 yen in the previous fiscal year.
2. Consolidated Financial Condition

Assets amounted to 7,821.1 billion yen, an increase of 194.0 billion yen from the end of the previous fiscal year, due
mainly to an increase in trade receivables and other receivables. Liabilities amounted to 3,885.7 billion yen, an
increase of 280.6 billion yen from the end of the previous fiscal year. This was primarily because of an increase in
corporate bonds and loans. Equity amounted to 3,935.4 billion yen, a decrease of 86.5 billion yen from the end of the
previous fiscal year.
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3. Liquidity and Capital Resources
(1) Capital needs and returning profits to shareholders
Toyota Industries' primary capital needs are twofold, specifically, long-term capital needs for research and development,
capital investment, M&A and others as well as working capital needs for purchasing raw materials and parts for
manufacturing the Toyota Industries' products and for manufacturing costs and selling, general and administrative
expenses.
In addition to prioritizing fund allocation in research and development and capital investment, it is Toyota Industries'
policy to invest funds in M&A and others when deemed necessary for business expansion and sustainable growth.
As for returning profits to shareholders, it is determined to pay dividends at the consolidated dividend payout ratio of
around 30%. In regard to dividend policy, refer to "7. Dividend Policy".
(2) Financial policy

Toyota Industries' financial policy is to ensure sufficient financing for its business activities and to maintain sufficient
liquidity and strong consolidated financial position. Toyota Industries continues to maintain its strong financial condition.
Through the use of such current assets as cash and cash equivalents and short-term investments, as well as cash
flows from operating activities, issuance of corporate bonds and loans from financial institutions, Toyota Industries
believes that it will be able to provide sufficient funds for the working capital necessary to expand existing businesses
and develop new projects.
Toyota Industries receives credit ratings from S&P Global Ratings Japan Inc., Moody's Japan K.K. and Rating &
Investment Information, Inc. and strives to maintain and improve its ratings to procure funds at favorable terms.
Regarding fund management, the Company undertakes integrated fund management of its subsidiaries in Japan, while
Toyota Industries North America, Inc. (TINA) and Toyota Industries Finance International AB (TIFI) centrally manage
the funds of subsidiaries in North America and Europe, respectively. Through close cooperation among the Company,
TINA and TIFI, we strive to improve efficiency of funds operations.
4. Cash Flows
Net cash provided by operating activities was 194.9 billion yen in FY2023, due to posting profit before income taxes of
262.9 billion yen. Net cash provided by operating activities decreased by 126.1 billion yen compared to that of 321.0
billion yen in the previous fiscal year.
Net cash used in investing activities was 427.6 billion yen in FY2023, attributable primarily to payments for bank
deposits of 919.4 billion yen and payments for purchases of property, plant and equipment of 289.9 billion yen, which
offset proceeds from withdrawals of bank deposits of 831.8 billion yen. Net cash used in investing activities increased
by 197.8 billion yen compared to that of 229.8 billion yen in the previous fiscal year.
Net cash provided by financing activities was 183.6 billion yen in FY2023 compared with a net loss 92.1 billion yen in
the previous fiscal year, due mainly to proceeds from long-term loans payable of 354.8 billion yen.
After adding translation adjustments and cash and cash equivalents at beginning of period, cash and cash equivalents
as of March 31, 2023 stood at 202.7 billion yen, a decrease of 44.3 billion yen, or 18%, from the end of the previous
fiscal year.
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5. Investment in Property, Plant and Equipment
During FY2022, Toyota Industries made a total investment of 338,371 million yen in property, plant and equipment
(including materials handling equipment for operating lease) in order to launch new products, streamline and upgrade
production equipment.
The breakdown in the operating segments is as follows.
In the Automobile Segment, investments in property, plant, and equipment was 99,618 million yen. This is primarily
attributable to the Company for 75,281 million yen and Tokyu Co., Ltd. for 6,762 million yen. In the Materials Handling
Equipment Segment, investments in property, plant, and equipment was 232,695 million yen. This is primarily attributable
to the Company for 5,237 million yen, Toyota Material Handling Europe AB Group for 67,252 million yen, Raymond Group
for 49,318 million yen, Toyota Industries Commercial Finance, Inc. for 48,391 million yen, Vanderlande Group for 11,355
million yen, Toyota Material Handling Australia Pty Limited for 11,288 million yen and Toyota Material Handling, Inc. for
5,754 million yen. In the Textile Machinery Segment, investment in property, plant, and equipment was 3,588 million yen.
In the Others Segment, investment in property, plant, and equipment was 2,469 million yen.
The fund is allocated from the Company's own resources, loans and corporate bonds.
6. Strategies and Outlook

(i) Response to violation of regulations related to certification of engines for forklifts
With respect to the excess over the domestic (Japanese) emissions regulation values due to aging degradation and
violation of regulations related to Japanese certification for emissions from engines for forklifts, in addition to the
investigation led by external lawyers so far, based on the results of a special investigation committee consisting of
independent external experts, Toyota Industries is in progress to clarify the details of the case and analyze the root
causes of these issues, and ensure recurrence prevention measures based on those activities. After that, based on the
decisions and instructions of the relevant Japanese authorities, Toyota Industries will work toward resuming shipping
and corrective measures on already sold products.
(ii) Business initiatives
There continue to be uncertainties regarding the outlook of the global economy, which has been on a path to recovery
from the impact of COVID-19. These include long-term concerns on effects caused by semiconductor shortages as well
as soaring resource prices and supply constraints arising from heightened geopolitical tensions. On the other hand, in
the political, economic and technological areas, pace of change in areas such as global environmental initiatives and
digitization are accelerating. In the markets for Automobile and Materials Handling Equipment, which constitute core
businesses of Toyota Industries, competition among companies is intensifying. This is primarily triggered by
advancements in the fields of vehicle electrification and autonomous driving. New entries that leverage information
technology and digital technologies and the transformation of the industrial structure.
Under these circumstances, we intend to focus on the following three actions in order to further strengthen the
management platform and enhance corporate value.
i) Thoroughly adhere to the basics

We will continue our focus in safety, health, quality, compliance, and the environment, which constitute the foundation
of the company, and in particular, we will review our legal compliance system and mechanisms. In addition, we will
adhere to the priorities of "safety first, quality second, and production third" in manufacturing and establish a culture of
safety.
ii) Strengthen management platform

We will respond quickly and accurately to risks and challenges by keeping an ear to the ground and investing
necessary and sufficient management resources in response to the world changing in every moment. To this end, we
will promote the creation of an organization and corporate culture that enables self-initiated change.
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iii) Challenges for the future
Viewing changes in the market and industry as opportunities for growth, we will develop innovative technologies and
products through the proactive use of information technology, digital technologies and open innovation and provide
services demanded by our customers.
Through these initiatives, we aim for a stronger management foundation to support sustainable growth and strive to
support industries and social foundations around the world and contribute to making the earth a better place to live,
enriched lifestyles and a compassionate society as described in Toyota Industries' Vision 2030.
7. Dividend Policy
Toyota Industries intends to meet the expectations of shareholders for continuous dividends while giving full consideration
to business performance, funding requirements, the dividend payout ratio and other factors.
Toyota Industries' Board of Directors meeting, held on April 27, 2023, approved a year-end cash dividend of 100.0 yen per
share. Including the interim cash dividend of 90.0 yen per share, cash dividends for the year totaled 190.0 yen per share.
Toyota Industries will use retained earnings to improve the competitiveness of its products, augment production capacity in
and outside Japan, as well as to expand into new fields of business and strengthen its corporate constitution in securing
future profits for its shareholders.
The Company's Articles of Incorporation stipulate that it may pay interim cash dividends as prescribed in Article 454-5 of
the Companies Act and it is the Company's basic policy to pay dividends from retained earnings twice a year (interim and
year-end).
The Company's Articles of Incorporation also stipulate that what is prescribed in Article 459-1 of the Companies Act can be
added to the Articles of Incorporation.
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8. Risk Information
The following represent risks that could have a material impact on Toyota Industries' financial condition, business
results and share prices. Toyota Industries judged the following as future risks as of March 31, 2023.
(1) Principal customers
Toyota Industries' automobile and engine products are sold primarily to Toyota Motor Corporation ("TMC"). In FY2023,
net sales to TMC accounted for 12.4% of consolidated net sales. Therefore, TMC's vehicle sales could have an impact
on Toyota Industries' business results. As of March 31, 2023, TMC holds 24.7% of the Company's voting rights.
(2) Product development capabilities

Based on the concept of "developing appealing new products", Toyota Industries proactively develops new products by
utilizing its leading-edge technologies, as it strives to anticipate increasingly sophisticated and diversifying needs of the
market and ensure the satisfaction of its customers.
R&D activities are focused mainly on developing and upgrading products in current business fields and peripheral
sectors. Toyota Industries expects that revenues derived from these fields will continue to account for a significant
portion of total revenues and anticipates that future growth will be contingent on the development and sales of new
products in these fields. Toyota Industries believes that it can continue to develop appealing new products. However,
Toyota Industries may not be able to forecast market needs and develop and introduce appealing new products in a
timely manner. This could result in lower future growth and have an adverse impact on Toyota Industries' financial
condition and business results.
Such a situation could result from risks that include that there is no assurance that Toyota Industries will be able to
allocate sufficient future funds necessary for the development of appealing new products; no assurance that product
sales will be successful, as forecasts of products supported by the market may not always be accurate; and no
assurance that newly developed products and technologies will always be protected as intellectual property.
(3) Intellectual property rights

In undertaking its business activities, Toyota Industries has acquired numerous intellectual property rights, including
those acquired outside Japan, such as patents related to its products, product designs and manufacturing methods.
However, not all patents submitted will necessarily be registered as rights, and these patents could thus be rejected by
patent authorities or invalidated by third parties. Also, a third party could circumvent a patent of Toyota Industries and
introduce a competing product into the market. Moreover, Toyota Industries' products utilize a wide range of
technologies. Therefore, Toyota Industries could become a party subject to litigation involving the intellectual property
rights of a third party.
(4) Product defects

Guided by the basic philosophy of "offering products and services that are clean, safe and of high quality", Toyota
Industries makes its utmost efforts to enhance quality.
However, Toyota Industries cannot guarantee all its products will be defect-free and that product recalls will not be
made in the future. Product defects that could lead to large-scale recalls and product liability indemnities could result in
large cost burdens and have a significant negative impact on the evaluation of Toyota Industries. It could also have an
adverse effect on Toyota Industries' financial condition and business results due to a decrease in sales and profit, and
decline in share prices of Toyota Industries.
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(5) Price competition
Toyota Industries faces extremely harsh competition in each of the industries in which it conducts business, including
its Automobile and Materials Handling Equipment businesses, which are the core of Toyota Industries' earnings
foundation. Toyota Industries believes it offers high value-added products that are unrivalled in terms of technology,
quality and cost.
Amid an environment characterized by intensifying price competition, however, Toyota Industries may be unable to
maintain or increase market share against low-cost competitors or to maintain profitability. This could have an adverse
impact on Toyota Industries' financial condition and business results.
(6) Reliance on suppliers of raw materials and components

Toyota Industries' products rely on various raw materials and components from suppliers outside Toyota Industries.
Toyota Industries has concluded basic business contracts with these external suppliers and assumes it can carry out
stable transactions for raw materials and components. However, Toyota Industries has no assurances against future
shortages of raw materials and components, which arise from a global shortage due to tight supply or an unforeseen
accident involving a supplier. Such shortages could have a negative effect on Toyota Industries' production and cause
an increase in costs, which could have an adverse impact on Toyota Industries' financial condition and business results.
(7) Environmental regulations

In view of its social responsibilities as a company, Toyota Industries strives to reduce any burden on the environment
resulting from its production processes, as well as strives to strictly adhere to applicable environmental laws and
regulations.
However, various environmental regulations could also be revised and strengthened in the future. Accordingly, any
expenses necessary for continuous strict adherence to these environmental regulations could result in increased
business costs and have an adverse impact on Toyota Industries' financial condition and business results.
(8) Compliance Risks

Toyota Industries regards compliance as major premise of business activities and one of the most important
managerial task. In order to carry out business activities in accordance with domestic and international legal
compliance as well as social norms, Toyota Industries try to avoid or minimize compliance risks by promoting system
maintenance and education and enlightenment for executives and employees, but in case of a serious violation of laws
and regulations and other related matters, they could have an adverse impact on Toyota Industries' financial condition
and business results, such as loss of social credibility, damage to brand image and so on.
(9) Alliances with other companies

Aiming to expand its businesses, Toyota Industries engages in joint activities with other companies through alliances
and joint ventures. However, a wildly fluctuating market trend or a policy disagreement between Toyota Industries and
its partners, owing to business, financial or other reasons, could prevent Toyota Industries from deriving the intended
benefits of its alliances.
(10) Exchange rate fluctuations

Toyota Industries' businesses encompass the production and sales of products and the provision of services worldwide.
Generally, the strengthening of the yen against other currencies (especially against the U.S. dollar and the euro, which
account for a significant portion of Toyota Industries' sales) has an adverse impact on Toyota Industries' business, while
a weakening of the yen has a favorable impact. As such, in the businesses in which the Toyota Industries manufactures
products in Japan and exports them, the strengthening of the yen could reduce Toyota Industries' relative price
competitiveness on a global basis and have an adverse impact on Toyota Industries' financial condition and business
results. To reduce such possibilities to a minimum, Toyota Industries uses, in principle, derivative transactions such as
forward exchange contracts to hedge risks of exchange rate fluctuations.
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(11) Share price fluctuations
Toyota Industries holds marketable securities, and therefore bears the risk of price fluctuations of these shares. Based
on fair market value of these shares at the end of the fiscal year under review, Toyota Industries had unrealized gains.
However, unrealized gains on marketable securities could worsen depending on future share price movements.
Additionally, a fall in share prices could reduce the value of pension assets, leading to an increase in the pension
shortfall.
(12) Effects of disasters, power outages and other incidents

Toyota Industries carries out regular checks and inspections of its production facilities to minimize the effect of
production breakdown. However, there is no assurance Toyota Industries can completely prevent or lessen the impact
of man-made or natural disasters and power outages occurring at Toyota Industries' and its suppliers' production
facilities. Specifically, the majority of Toyota Industries' domestic production facilities and those of its business partners
are situated in the Chubu region. Therefore, major disasters in this region could delay or stop production or shipment
activities. Such prolonged delays and stoppages could have an adverse impact on Toyota Industries' financial condition
and business results. To reduce such possibilities to a minimum, Toyota Industries works with business suppliers for
optimizing the supply chain such as obtaining alternative means of supplies of raw materials and parts by regionally
dispersing channels.
(13) Latent risks associated with international activities

Toyota Industries manufactures and sells products and provides services in various countries. Such unforeseen factors
as social chaos, including political disruptions, terrorism, wars and disease, as well as changes in economic conditions,
could have an adverse impact on Toyota Industries' financial condition and business results.
(14) Post-employment benefits

Toyota Industries' defined benefit plan expenses and liabilities are calculated based on actuarial assumptions that
incorporate discount rates and other factors. Therefore, differences between actual results and assumptions, such as a
reduction in discount rates or a decrease in plan assets, as well as changes in the assumptions could have a
significant impact on recognized expenses and calculated liabilities in future accounting periods.
9. Material Contract Agreements

There are no material contract agreements that need to be disclosed as of the end of fiscal year ended March 31, 2023.
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10. Toyota Industries' Relationship to Toyota Motor Corporation
Due to historical reasons, Toyota Industries maintains close relationships with TMC and other Toyota Group companies
in terms of capital and business dealings.
(1) Historical background

In 1933, Kiichiro Toyoda, the eldest son of founder Sakichi Toyoda and then Managing Director of Toyoda Automatic
Loom Works, Ltd. (the present Toyota Industries), established the Automobile Department within the Company based
on his resolve to manufacture Japanese-made automobiles. In 1937, the Automobile Department was spun off and
became an independent company, Toyota Motor Co., Ltd. (the present TMC).
(2) Capital relationship

In light of this historical background, Toyota Industries and TMC have maintained a close capital relationship. As of
March 31, 2023, Toyota Industries holds 8.79% (1,192,331 thousand shares) of TMC's total shares in issue. Likewise,
as of the same date, TMC holds 24.7% of Toyota Industries' total voting rights. Toyota Industries is a TMC affiliate
accounted for by the equity method.
(3) Business relationship

Toyota Industries assembles certain automobiles and produces automobile engines under consignment from TMC.
Additionally, Toyota Industries sells a portion of its other components and products directly or indirectly to other Toyota
Group companies. In FY2023, our net sales to TMC on a stand-alone basis accounted for 12.4% of our consolidated
net sales.
(4) Contributions to the Toyota Group

As a member of the Toyota Group, Toyota Industries aims to contribute to strengthening the competitiveness of TMC
and other Toyota Group companies in areas such as quality, cost, delivery and technologies. Toyota Industries is
confident that raising the Toyota Group's competitiveness will lead to increases in sales to and profits from the Toyota
Group, thereby contributing to raising Toyota Industries' corporate value.
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[Consolidated Financial Statements and Other]
I. [Consolidated Financial Statements]
[Consolidated Statement of Financial Position]
(Millions of yen)
FY2022 FY2023
Notes
(As of March 31, 2022) (As of March 31, 2023)
Assets
Current assets
Cash and cash equivalents 5 247,085 202,731
Time deposits with deposit terms of over three months 328,674 420,173
Trade receivables and other receivables 6 1,121,491 1,398,757
Other financial assets 7 12,672 5,399
Inventories 8 433,961 524,385
Income tax receivables 28,906 26,262
Other current assets 83,034 99,313
Total current assets 2,255,827 2,677,024
Non-current assets
Property, plant and equipment 9, 30 1,134,074 1,237,540
Goodwill and intangible assets 10, 30 395,882 468,368
Trade receivables and other receivables 6 2,334 1,459
Investments accounted for by the equity method 11 21,337 23,987
Other financial assets 7 3,734,978 3,338,505
Net defined benefit assets 17 37,408 27,887
Deferred tax assets 25 39,908 37,992
Other non-current assets 5,368 8,421
Total non-current assets 5,371,292 5,144,161
Total assets 7,627,120 7,821,185
The accompanying notes are an integral part of these financial statements.
― 12 ―
(Millions of yen)
FY2022 FY2023
Notes
Liabilities and Equity
Liabilities
Current liabilities
Trade payables and other payables 12 745,553 807,474
Corporate bonds and loans 13 468,504 519,749
Other financial liabilities 14 82,909 83,749
Accrued income taxes 27,281 29,696
Provisions 16 15,415 41,827
Other current liabilities 33,058 34,615
Total current liabilities 1,372,721 1,517,112
Non-current liabilities
Corporate bonds and loans 13 922,011 1,179,390
Other financial liabilities 14 95,237 104,404
Net defined benefit liabilities 17 91,677 81,422
Provisions 16 11,809 11,025
Deferred tax liabilities 25 1,078,641 952,960
Other non-current liabilities 33,054 39,467
Total non-current liabilities 2,232,430 2,368,671
Total liabilities 3,605,152 3,885,784
Equity
Share of equity attributable to owners of the parent
Capital stock 18 80,462 80,462
Capital surplus 18 102,388 101,245
Retained earnings 18 1,514,657 1,652,648
Treasury stock 18 (59,339) (59,345)
Other components of equity 18 2,290,343 2,062,404

Total share of equity attributable to owners of
3,928,513 3,837,416
the parent
Non-controlling interests 93,454 97,985
Total equity 4,021,967 3,935,401
Total liabilities and equity 7,627,120 7,821,185
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[Consolidated Statement of Profit or Loss]
(Millions of yen)
FY2022 FY2023
Notes (April 1, 2021 (April 1, 2022
- March 31, 2022) - March 31, 2023)
Net sales 20 2,705,183 3,379,891
Cost of sales 21, 22 (2,097,501) (2,623,707)
Gross profit 607,682 756,183
Selling, general and administrative expenses 21, 22 (455,165) (576,761)
Other income 23 20,942 28,230
Other expenses 23 (14,391) (37,748)
Operating profit 159,066 169,904
Financial income 24 89,941 103,728
Financial expenses 24 (7,282) (13,976)

Share of profit (loss) of investments accounted for
11 4,397 3,311
by the equity method
Profit before income taxes 246,123 262,967
Income taxes 25 (60,773) (64,250)
Profit 185,350 198,716
Profit attributable to:
Owners of the parent 180,306 192,861
Earnings per share 26
Earnings per share－basic (yen) 580.73 621.17
Earnings per share－diluted (yen) 580.73 621.17
― 14 ―
[Consolidated Statement of Comprehensive Income]
(Millions of yen)
FY2022 FY2023
- March 31, 2022) - March 31, 2023)
Profit 185,350 198,716
Other comprehensive income:
Items not to be reclassified into profit or loss

Net changes in revaluation of FVTOCI
27, 29 465,900 (284,805)
financial assets
Remeasurements of defined benefit plans 17, 27 13,943 576
Other comprehensive income of affiliates
11, 27 19 1
accounted for by the equity method
Total items not to be reclassified into profit or loss 479,863 (284,227)
Items that can be reclassified into profit or loss
Translation adjustments of foreign operations 27 84,380 56,074
Cash flow hedges 27, 29 1,126 2,931

Other comprehensive income of affiliates
11, 27 1,102 156
accounted for by the equity method
Total items that can be reclassified into profit or loss 86,610 59,162
Total other comprehensive income 566,473 (225,065)
Comprehensive income 751,823 (26,348)
Total comprehensive income attributable to:
Owners of the parent 742,088 (34,061)
― 15 ―
[Consolidated Statement of Changes in Equity]
(Millions of yen)
Other components of equity
Notes Capital Capital Retained Treasury Net changes in

Remeasurements
stock surplus earnings stock revaluation of
of defined benefit
FVTOCI
plans
financial assets
Balance as of April 1, 2021 80,462 102,307 1,369,775 (59,321) 1,779,685 －
Profit －－ 180,306 －－－
Other comprehensive income －－－－ 466,017 13,896
Total comprehensive income －－ 180,306 － 466,017 13,896
Repurchase of treasury stock 18 －－－ (18) －－
Disposal of treasury stock 18 － 0 － 0 －－
Dividends 19 －－ (49,676) －－－
Changes in ownership interest of
－ 81 －－－－
subsidiaries
Changes in non-controlling interests
as a result of change in scope of －－－－－－
consolidation
Reclassified into retained earnings －－ 14,252 － (355) (13,896)
Other increases (decreases) －－－－－－
Total transactions with owners － 81 (35,424) (18) (355) (13,896)
Balance as of March 31, 2022 80,462 102,388 1,514,657 (59,339) 2,245,347 －
Profit －－ 192,861 －－－
Other comprehensive income －－－－ (284,915) 685
Total comprehensive income －－ 192,861 － (284,915) 685
Repurchase of treasury stock 18 －－－ (5) －－
Disposal of treasury stock 18 － 0 － 0 －－
Dividends 19 －－ (55,886) －－－
－ 58 －－－－
subsidiaries
consolidation
Reclassified into retained earnings －－ 1,015 － (330) (685)
Other increases (decreases) － (1,201) －－－－
Total transactions with owners － (1,143) (54,870) (5) (330) (685)
Balance as of March 31, 2023 80,462 101,245 1,652,648 (59,345) 1,960,101 －
― 16 ―
(Millions of yen)
Other components of equity
Non-controlling
Notes Translation Total equity
Total interests
adjustments Cash flow
Total
of foreign hedges
operations
Balance as of April 1, 2021 (39,082) 2,211 1,742,814 3,236,038 86,511 3,322,550
Profit －－－ 180,306 5,043 185,350
Other comprehensive income 80,740 1,126 561,781 561,781 4,692 566,473
Total comprehensive income 80,740 1,126 561,781 742,088 9,735 751,823
Repurchase of treasury stock 18 －－－ (18) － (18)
Disposal of treasury stock 18 －－－ 0 － 0
Dividends 19 －－－ (49,676) (2,260) (51,937)

－－－ 81 (1,066) (984)
subsidiaries
as a result of change in scope of －－－－ 534 534
consolidation
Reclassified into retained earnings －－ (14,252) －－－
Other increases (decreases) －－－－－－
Total transactions with owners －－ (14,252) (49,613) (2,792) (52,405)
Balance as of March 31, 2022 41,657 3,338 2,290,343 3,928,513 93,454 4,021,967
Profit －－－ 192,861 5,855 198,716
Other comprehensive income 54,374 2,931 (226,922) (226,922) 1,857 (225,065)
Total comprehensive income 54,374 2,931 (226,922) (34,061) 7,713 (26,348)
Repurchase of treasury stock 18 －－－ (5) － (5)
Disposal of treasury stock 18 －－－ 0 － 0
Dividends 19 －－－ (55,886) (2,674) (58,560)

－－－ 58 (508) (449)
subsidiaries
consolidation
Reclassified into retained earnings －－ (1,015) －－－
Other increases (decreases) －－－ (1,201) － (1,201)
Total transactions with owners －－ (1,015) (57,035) (3,182) (60,217)
Balance as of March 31, 2023 96,032 6,269 2,062,404 3,837,416 97,985 3,935,401
― 17 ―
[Consolidated Statement of Cash Flows]
(Millions of yen)
FY2022 FY2023
- March 31, 2022) - March 31, 2023)
Cash flows from operating activities:
Profit before income taxes 246,123 262,967
Depreciation and amortization 223,737 257,762
Impairment losses 2,368 2,634
Interest and dividends income (84,203) (95,424)
Interest expenses 4,868 10,111
Share of (profit) loss of investments accounted
(4,397) (3,311)
for by the equity method
(Increase) decrease in inventories (110,613) (70,207)
(Increase) decrease in trade receivables and
(81,246) (225,489)
other receivables
Increase (decrease) in trade payables and other payables 93,537 29,619
Others 12,496 7,241
Subtotal 302,671 175,904
Interest and dividends income received 84,921 95,920
Interest expenses paid (4,999) (9,919)
Income taxes paid (61,507) (66,940)
Net cash provided by operating activities 321,085 194,964
Cash flows from investing activities:
Payments for purchases of property, plant and equipment (237,371) (289,974)
Proceeds from sales of property, plant and equipment 16,415 19,660
Payments for purchases of investment securities (1,406) (1,624)
Proceeds from sales of investment securities 651 541
Payments for acquisition of subsidiaries' stock
(14,905) (36,486)
resulting in change in scope of consolidation
Payments for bank deposits (935,461) (919,474)
Proceeds from withdrawals of bank deposits 961,239 831,815
Payments for transfer of businesses (529) (2,104)
Others (18,438) (29,995)
Net cash used in investing activities (229,805) (427,642)
Cash flows from financing activities:
Net increase (decrease) in short-term loans
31 26,622 59,426
payable (within three months)
Proceeds from short-term loans payable
31 136,079 82,054
(over three months)
Repayments of short-term loans payable
31 (112,363) (158,332)
(over three months)
Net increase (decrease) in commercial paper 31 40,590 112,121
Proceeds from long-term loans payable 31 233,551 354,876
Repayments of long-term loans payable 31 (180,482) (130,782)
Proceeds from issuance of corporate bonds 31 13,205 103,314
Repayments of corporate bonds 31 (184,066) (165,036)
Repayments of lease obligations 31 (16,453) (40,910)
Payments for repurchase of treasury stock (18) (5)
Cash dividends paid 19 (49,676) (55,886)
Cash dividends paid to non-controlling interests (2,260) (2,674)
Others 3,156 25,524
Net cash provided by (used in) financing activities (92,114) 183,690
Translation adjustments of cash and cash equivalents 9,671 4,632
Net increase (decrease) in cash and cash equivalents 8,837 (44,353)
Cash and cash equivalents at beginning of period 238,248 247,085
Cash and cash equivalents at end of period 5 247,085 202,731
― 18 ―
Notes to Consolidated Financial Statements
1. Reporting Entity
Toyota Industries Corporation (hereinafter, "the Company") is a company domiciled in Japan. The accompanying
consolidated financial statements comprise Toyota Industries and the Company's interests in affiliates. The businesses
of the Toyota Industries include the manufacture and sales of automobiles, materials handling equipment, textile
machinery and others. The content of each business is detailed in "4. Segment Information".
2. Basis of Presentation
(1) Conformance of consolidated financial statements with IFRS
As the Company meets the requirements of "Specified Company Applying Designated International Financial Reporting
Standards" pursuant to Article 1-2 of the Ordinance on Consolidated Financial Statements, the consolidated financial
statements of the Company have been prepared in accordance with International Financial Reporting Standards (IFRS)
as permitted by the provision of Article 93 of the Ordinance.
The consolidated financial statements have been approved by Koichi Ito, president of the Company, on August 10, 2023.
(2) Basis of measurement

As detailed in "3. Material Accounting Policies", Toyota Industries' consolidated financial statements have been prepared
on a historical cost basis, except for specific financial instruments and others measured at fair value.
(3) Functional currency and presentation currency

The financial statements of each of Toyota Industries' entities are measured using the currency of the primary economic
environment in which the entity operates ("functional currency"). These consolidated financial statements are presented
in Japanese yen, which is the Company's functional currency, rounded down to the nearest million yen.
(4) Use of estimates and judgments

In the preparation of the IFRS-compliant consolidated financial statements, the Company is required to make a number
of judgments, estimates and assumptions that could have an impact on the application of accounting policies, reporting
of revenues and expenses as well as assets and liabilities. Actual results, however, could differ from those estimates.
Estimates and assumptions are continually reviewed. The effect of a changes in accounting estimates is recognized in
the reporting period in which the change was made and in future reporting periods.
The information regarding judgments used in applying accounting policies that could have a material effect on the
Company's consolidated financial statements is included in "3. Material Accounting Policies".
The information regarding uncertainties arising from assumptions and estimates that could result in material adjustments
in the subsequent consolidated financial statements is as follows.
10. Goodwill and Intangible Assets (impairment losses)

17. Employee Benefits (Actuarial assumptions)
(5) Accounting standards and interpretations not yet adopted by the Company
Of the new accounting standards and the new interpretations that have been newly issued or amended by the date of
approval of the consolidated financial statements, the major ones that have not yet been adopted by Toyota Industries
as of March 31, 2023 are as follows.
The adoption has no impact on the Company net assets and net income or net loss.
― 19 ―
Mandatory
To be
effective date
adopted
IFRS Title (Fiscal year Description of new issue and amendments
byToyota
beginning on
Industries
or after)
Clarification of the accounting for deferred
January 1,
IAS 12 Income Taxes FY2024 taxes relating to assets and liabilities arising
2023
from a single transaction
― 20 ―
3. Material Accounting Policies
(1) Basis of Consolidation
(i) Business combinations
Business combinations are accounted for using the acquisition method. Goodwill is measured as the difference
between the aggregate of the acquisition-date fair value of the consideration transferred, the amount of any non-
controlling interests in the acquiree and, in a business combination achieved in stages, the acquisition-date fair value
of the acquirer's previously held equity interest in the acquiree, and the net of the acquisition-date amounts of the
identifiable assets acquired and the liabilities assumed. If the difference is negative, it is immediately recognized in
profit or loss. If the initial accounting for a business combination is incomplete by the end of the fiscal year in which
the combination occurs, provisional amounts of incomplete items are measured, which are adjusted during the
measurement period within one year from the date of acquisition. Acquisition-related costs incurred are recognized as
expenses. For intangible assets acquired through a business combination, see "(6) Intangible Assets (iii) Intangible
assets acquired in business combinations". For policy on impairment losses of non-financial assets including goodwill,
see "(15) Impairment Losses (ii) Non-financial assets".
(ii) Subsidiaries
Subsidiaries are entities controlled by the Company. The financial statements of the subsidiaries are consolidated into
those of the Company from the date on which the Company acquires control until the date on which the Company
loses control. Subsidiaries' financial statements are adjusted if their accounting policies differ from those of the
Company. Intra-group balances, transactions and any unrealized gains or losses resulting from intra-group
transactions are eliminated on consolidation. Comprehensive income is attributed to the owners of the parent and to
non-controlling interests, even if this results in the non-controlling interests having a deficit balance. Non-controlling
interests consist of the amount of those interests recognized initially at the date on which the Company acquires
control and the changes in non-controlling interests since the said date.
The consolidated financial statements contain financial statements of subsidiaries whose closing dates differ from that
of the parent as a result of those dates being required by laws of the countries where those subsidiaries reside. For
those subsidiaries, financial statements are prepared as of and years ended for March 31, and are used in the
consolidated closing date.
(iii) Affiliates
Affiliates are entities in which Toyota Industries has a significant influence, but not control, over financial and operating
policies. Investments in affiliates are accounted for using the equity method from the date on which the Company has
a significant influence until the date on which the Company loses the significant influence.
If accounting policies of affiliates differ from those adopted by Toyota Industries, the Company makes necessary
modifications to align them with those of Toyota Industries.
Under the equity method, the investment is initially measured at cost and is adjusted thereafter for the post-acquisition
change in the Toyota Industries' share of the affiliates' net assets. In doing so, the amount equivalent to Toyota
Industries' share of the affiliates' net assets is recognized in profit or loss of the Group. Also, the amount equivalent to
Toyota Industries' share of the affiliates' other comprehensive income is recognized in other comprehensive income of
Toyota Industries. The amount equivalent to Toyota Industries' share of the affiliates' loss is recognized as a loss until
the amount exceeds the investment (including long-term interests that, in substance, form part of the Toyota
Industries' net investment in that affiliate), and losses in excess of the investment are recognized only to the extent
that Toyota Industries has incurred legal or constructive liabilities or made payments on behalf of the affiliate.
Unrealized gains or losses from significant inter-company transactions are eliminated to the extent of Toyota
Industries' share of the equity interest in the affiliate.
Any excess of the cost of acquisition over identifiable assets, liabilities and contingent liabilities of the affiliate at the
date of acquisition is recognized as goodwill and included in the carrying value of the investment, and is not amortized.
― 21 ―
(2) Foreign Currencies
(i) Foreign currency transactions
Foreign currency transactions are converted into the functional currency of each of Toyota Industries' entities using
the exchange rate prevailing at the transaction date. Monetary assets and liabilities denominated in foreign currencies
are converted into the functional currency using the exchange rate at the end of the reporting period.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated
into the functional currency at the spot rate using the exchange rate at the fair value calculation date.
Any exchange difference arising from the retranslation and settlement is recognized in profit or loss of the period.
(ii) Foreign operations

Assets and liabilities of foreign operations including goodwill and fair value adjustments arising from acquisition are
translated at the exchange rates at the end of the reporting period. Income and expenses of foreign operations are
translated at the average exchange rates during the fiscal year, except in cases where exchange rates fluctuate
significantly. If exchange rates fluctuate significantly, the exchange rate at the transaction date is used.
Foreign currency differences from the translation are recognized in other comprehensive income. When a foreign
operation is disposed of, or control or significant influence or joint control is lost, the cumulative amount of exchange
differences related to that foreign operation is reclassified to profit or loss as part of the gain or loss on the disposal.
(3) Cash and Cash Equivalents

Cash and cash equivalents are cash on hand, readily available deposits and short-term highly liquid and low risk
investments with maturities not exceeding three months at the time of purchase.
(4) Inventories
Inventories are stated at the lower of cost or net realizable value. Cost of inventories includes purchase costs,
processing costs and all other costs incurred in bringing them to their existing location and condition, and is calculated
primarily using the moving average method.
Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of
completion and the estimated costs necessary to sell.
(5) Property, Plant and Equipment

Property, plant and equipment are measured using the cost model and are stated at cost less accumulated
depreciation and accumulated impairment losses.
Estimated useful lives and the method of depreciation are reviewed at the fiscal year-end. Changes in estimated
useful lives or depreciation methods are accounted for on a prospective basis as a change in accounting estimate.
Property, plant and equipment, excluding land and construction in progress, are depreciated on a straight-line basis
over their estimated useful lives. Right-of-use assets are depreciated on a systematic basis from the commencement
date to the earlier of the end of the economic life of the underlying asset or the end of the lease term. The estimated
useful lives for major classes of assets are as follows.
・ Buildings and structures: 5 to 60 years

・ Machinery and vehicles: 3 to 22 years
An item of property, plant and equipment is derecognized on disposal or when it is withdrawn from use and no future
economic benefits are expected from its disposal. Any gain or loss arising from derecognition of an item of property,
plant and equipment is included in profit or loss when it is derecognized.
For the policy on impairment of property, plant and equipment, see "(15) Impairment Losses (ii) Non-financial assets".
― 22 ―
(6) Intangible Assets
Intangible assets are measured using the cost model and stated at cost less accumulated depreciation and
accumulated impairment losses.
(i) Intangible assets acquired separately

Intangible assets acquired separately with finite useful lives are carried at cost less accumulated amortization and
accumulated impairment losses.
(ii) Internally generated intangible assets

Expenditure on research is recognized as an expense in the consolidated statement of profit or loss in the fiscal year
in which it is incurred.
An intangible asset arising from development (or from the development phase of an internal project) is recognized if,
and only if, all of the following can be demonstrated:
a) the technical feasibility of completing the intangible asset so that it will be available for use or sale
b) its intention to complete the intangible asset and use or sell it
c) its ability to use or sell the intangible asset
d) how the intangible asset will generate probable future economic benefits
e) the availability of adequate technical, financial and other resources to complete development and to use or sell
the intangible asset
f) its ability to measure reliably the expenditure attributable to the intangible asset during its development
The cost of an internally generated intangible asset is the sum of expenditure incurred from the date when the
intangible asset first meets the recognition criteria above to the completion of its development. If an internally
generated asset is not recognized, a development cost is recognized as an expense in the consolidated statement of
profit or loss in the fiscal year in which it is incurred.
After initial recognition, an internally generated intangible assets are carried at cost less accumulated amortization
and accumulated impairment losses.
(iii) Intangible assets acquired in business combinations

The cost of intangible assets acquired in a business combination is measured at fair value at the acquisition date.
After initial recognition, intangible assets acquired in a business combination are carried at cost less accumulated
amortization and accumulated impairment losses.
Intangible assets acquired in business combinations with indefinite useful lives are carried at cost less accumulated
impairment losses, without being amortized but tested for impairment, in the same way as goodwill.
(iv) Amortization of intangible assets

Intangible assets with finite useful lives are amortized on a straight-line basis over their estimated useful lives. The
estimated useful lives of major classes of assets are as follows.
・ Software: 3 to 5 years
・ Development assets: 2 to 10 years
・ Customer-related assets: 12 to 20 years
・ Technology-related assets: 10 to 20 years
Estimated useful lives and amortization methods are reviewed at each reporting date, and any revisions are applied
as revisions to accounting estimates prospectively.
― 23 ―
(v) Derecognition of intangible assets
An item of intangible assets is derecognized on disposal or when it is withdrawn from use and no future economic
benefits are expected from its disposal. Any gain or loss arising from derecognition of an item of intangible assets is
included in profit or loss when it is derecognized.
For policies on impairment of intangible assets, see "(15) Impairment Losses (ii) Non-financial assets".
(7) Leases
(i) Leases as lessee
Lease liabilities are measured at the discounted present value of outstanding lease payments at the commencement
date of the lease. After the commencement date of the lease, lease liabilities are measured by increasing the carrying
amount to reflect interest on the lease liabilities and reducing the carrying amount to reflect the lease payments made.
The interest rate implicit in the lease (if that rate can be readily determined) or lessee's incremental borrowing rate is
used for the discount rate.
Right-of-use assets are measured at cost that is the initial measurement amount of lease liability at the
commencement date of the lease adjusted by the amount of any initial direct costs, prepaid lease payments and other
expenses. After the commencement date of the lease, right-of-use assets are measured at cost less any accumulated
depreciation and accumulated impairment losses as determined using the cost model. Right-of-use assets are
depreciated on a systematic basis from the commencement date to the earlier of the end of the economic life of the
underlying asset or the end of the lease term.
Right-of-use assets are included in "Property, plant and equipment" or "Goodwill and intangible assets". Lease
liabilities are included in "Other financial liabilities (Current liabilities)" or "Other financial liabilities (Non-current
liabilities)".
Lease payments for short-term leases and leases of low value assets are recognized as expense using the straight-
line method over the lease term. For contracts that include a lease component and a non-lease component, the
Company accounts for the lease component and the non-lease component as a single lease component without
separating the non-lease component.
In reference to whether a contract is a lease or whether a contract contains a lease, Toyota Industries makes
judgments based on the substance of the contract even though it is not legally considered as a lease.
(ii) Leases as lessor

Contracts containing leases are classified as finance leases whenever substantially all risks and economic values
incidental to the ownership of assets are transferred to the lessee, and other leases are classified as operating leases.
For financial leases, an amount equal to the net investment in the lease by discounting the total amount of lease
payments and unguaranteed residual value with the interest rate implicit in the lease is recorded as lease investment
assets. If Toyota Industries is a manufacturer or distributor lessor in a lease, selling profit or loss in a financial lease is
recognized in accordance with the accounting policy it follows for sales of goods (see "(12) Revenues"). Financial
income is allocated to each period over the lease term so that the interest rate is proportional to an amount equal to
the net investment in the lease. If Toyota Industries is not a manufacturer or distributor lessor in a lease, financial
income is allocated to each period over the lease term so that the interest rate will be proportional to an amount equal
to the net investment in the lease.
Income from operating leases is recognized on a straight-line basis over the lease term, unless another systematic
basis is more representative of the time pattern in which use benefit derived from the leased asset is diminished.
― 24 ―
(8) Provisions
The Company recognizes provisions if it has a present legal or constructive obligation as a result of past events, it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and the
amount of obligation can be reliably estimated.
In case the time value of money is significant, the amount of a provision is measured at the present value of the
amount of expenditures expected to be required to settle the obligation.
(9) Government Grants

A government grant is recognized at fair value when there is reasonable assurance that Toyota Industries will comply
with any conditions attached to the grant and it will receive the grant. When a grant is received for acquisition of an
asset, the carrying amount of the asset is calculated by deducting the amount of the grant from the acquisition cost of
the asset.
(10) Employee Benefits

(i) Post-employment benefits
Toyota Industries adopts the pension and lump-sum payment defined benefit plan and the defined contribution plan.
Toyota Industries' liabilities (assets) in respect of defined benefit plans is calculated for each plan by estimating the
amount of future benefits earned by employees in the previous fiscal year and the fiscal year under review,
discounting that amount to the present value, deducting the fair value of plan assets, making adjustments concerning
the asset ceiling to that amount and, where necessary, considering economic benefits available. Remeasurements of
liabilities (assets) in respect of defined benefit plans are recognized in other comprehensive income and at the time of
their occurrence directly transferred from other components of equity to retained earnings. Past service cost is
recognized in profit or loss as it occurs. Market yields on high-quality corporate bonds with roughly the same maturity
as that of Toyota Industries' net defined benefit liabilities at the end of the reporting period are used as the discount
rate. Interest expenses on liabilities (asset) in respect of defined benefit plans are presented as financial expenses.
Contributions under the defined contribution plan are expensed as the employees' services are provided.
(ii) Short-term employee benefits

Short-term employee benefits are expensed as the relevant services are provided and are not discounted.
For bonuses, if Toyota Industries has the present legal and constructive obligation to pay them as the result of past
services provided by employees and the amount can be reliably estimated, the amount estimated to be paid is
recognized as a liability.
(iii) Other long-term employee benefits

The amount of an obligation in respect of the long-service travel award scheme is calculated by estimating the
amount of future benefits earned by employees in the current and prior fiscal years and discounting that amount to the
present value.
Market yields on high-quality corporate bonds with roughly the same maturity as that of Toyota Industries' long-term
employee benefits at the end of the reporting period are used as the discount rate.
(iv) Share-based compensation

Toyota Industries has the cash-settled share-based compensation plan for some of its subsidiaries outside Japan.
Cash-settled share-based compensation is measured at the fair value of the goods or services received and liabilities
incurred. The fair value of the liabilities is remeasured at the end of each reporting period and on the settlement date,
and changes in fair value are recognized in profit or loss.
― 25 ―
(11) Financial Instruments
A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity. The Group recognizes a financial asset or a financial liability when it becomes a party to
the contract of a financial instrument. A purchase or sale of financial assets is recognized or derecognized at the trade
date.
(i) Non-derivative financial assets

Toyota Industries categorizes non-derivative assets into financial assets measured at amortized cost, financial assets
measured at fair value through other comprehensive income (FVTOCI) and financial assets measured at fair value
through profit or loss (FVTPL).
For details of fair value measurement, see "29. Financial Instruments (3) Fair value of financial instruments".
(Financial assets measured at amortized cost)

Toyota Industries categorizes financial assets as financial assets measured at amortized cost if financial assets are
held with the objective of collecting contractual cash flows and their contractual terms provide cash flows on
specified dates that are solely payments of principal and interest on the principal amount outstanding. Financial
assets measured at amortized cost are initially measured at fair value. The carrying amount of financial assets
measured at amortized cost is subsequently measured using the effective interest method.
(Financial assets measured at fair value)

Toyota Industries categorizes financial assets other than financial assets measured at amortized cost as financial
assets measured at fair value. Financial assets measured at fair value are further divided into the following
classifications according to holding purpose.
(Equity instruments measured at fair value through other comprehensive income (FVTOCI))
Shares and other financial assets held mainly for the purpose of maintaining or enhancing business relationships
with investors are designated at initial recognition as financial assets at FVTOCI.
Equity instruments at FVTOCI are measured at fair value at initial recognition and changes in fair value thereafter
are recognized in other comprehensive income. However, dividends arising from financial assets at FVTOCI are
recognized in profit or loss.
If an equity instrument at FVTOCI is derecognized, the cumulative amount of other comprehensive income
recognized in other components of equity on the consolidated statement of financial position is directly transferred
to retained earnings.
(Financial assets measured at fair value through profit or loss (FVTPL))

Financial assets not designated as financial assets at FVTOCI of financial assets measured by Toyota Industries
are classified as financial assets at FVTPL.
Financial assets at FVTPL are measured at fair value at initial recognition and changes in fair value thereafter are
recognized in profit or loss.
(ii) Non-derivative financial liabilities

Non-derivative financial liabilities are measured at fair value at initial recognition and thereafter at amortization cost
using the effective interest method.
A financial liability is derecognized when its contractual obligations are discharged or canceled, or expire.
― 26 ―
(iii) Derivatives
Toyota Industries holds derivative financial instruments to hedge foreign currency and interest rate fluctuation risks,
including foreign currency forward contracts, currency options, currency swaps, interest rate swaps, interest rate and
currency swaps, and interest rate options.
For all of these derivatives, Toyota Industries recognizes financial assets or financial liabilities when it becomes the
party to these derivatives contracts.
Some of derivatives Toyota Industries holds for hedging purposes do not meet hedge accounting requirements.
Changes in fair value of these derivatives are immediately recognized in profit or loss.
Toyota Industries adopts cash flow hedges and fair value hedges as a hedge accounting method.
(iv) Offsetting financial assets and liabilities

Financial assets and liabilities are offset and reported as net amounts in the consolidated statement of financial
position only if Toyota Industries currently has a legally enforceable right to set off the recognized amounts and
intends to settle on a net basis or to realize the asset and settle the liability simultaneously.
(12) Revenues
Toyota Industries recognizes revenue based on the following five-step model.
Step 1: Identify the contract with a customer
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation
Toyota Industries sells automotive-related products such as vehicles, engines, foundry parts for engines, car air-
conditioning compressors, electronics parts and batteries in the Automobile Business; lift trucks, warehouse trucks
and aerial work platforms in the Materials Handling Equipment Business; and weaving machinery, spinning machinery,
instruments for yarn testing and cotton classing in the Textile Machinery Business. For sales of such products, since
the customer obtains control over the product when a customer accepts goods after inspection, and therefore the
performance obligation is judged to have been satisfied, Toyota Industries normally recognizes revenue when a
customer accepts goods after inspection. Revenue is measured at the amount of consideration promised in a contract
with the customer, net of discounts, incentives to distributors and other items.
For maintenance contracts and other services that include construction contracts in the Materials Handling Equipment
Business such as automated storage and retrieval systems, and logistics solutions, Toyota Industries recognizes
revenue based on the progress of performance obligation. The progress level is mainly computed according to the
ratio of cumulative cost incurred against the total amount of estimated cost.
― 27 ―
(13) Financial Income and Financial Expenses
Financial income includes interest income, dividends income, gains on foreign currency translation and gain on
derivatives (excluding gain or loss on hedging instruments that are recognized in other comprehensive income).
Interest income is recognized as earned using the effective interest method. Dividends income is recognized on the
date of Toyota Industries' vesting.
Financial expenses include interest expense, losses on foreign currency translation and loss on derivatives (excluding
loss on hedging instruments that are recognized in other comprehensive income).
(14) Income Taxes

Income taxes comprise current taxes and deferred taxes. These are recognized in profit or loss except taxes that arise
from items that are recognized either in other comprehensive income or directly in equity or from business
combinations.
Taxes for the fiscal year under review are the expected taxes payable or receivable on the taxable profit or loss for the
year, using the tax rates and tax laws enacted or substantively enacted by the end of the reporting period.
Deferred tax assets and liabilities are recognized on temporary differences between the carrying amounts of assets
and liabilities for accounting purposes and their tax basis. Deferred tax assets and liabilities are not recognized if the
temporary difference arises from the initial recognition of an asset or liability in a transaction not related to a business
combination and affects neither accounting profit nor taxable profit. Also, deferred tax liabilities are not recognized if
the taxable temporary difference arises from the initial recognition of goodwill.
Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries
and affiliates. However, deferred tax liabilities are not recognized if Toyota Industries is able to control the reversal of
the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred tax assets arising from deductible temporary differences associated with such investments are only
recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the
benefits of the temporary differences and they are expected to reverse in the foreseeable future.
Deferred tax assets and liabilities are measured at the tax rates expected to apply in the period in which the asset
realized or the liability is settled based on tax laws that have been enacted or substantively enacted by the end of the
reporting period.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets
against current tax liabilities and when income taxes are levied by the same taxation authority on the same taxable
entity, or on different taxable entities that intend either to settle current tax assets and liabilities on a net basis, or to
realize the assets and settle the liabilities simultaneously.
Deferred tax assets are recognized for unused tax losses, tax credits and deductible temporary differences to the
extent that it is probable that taxable profits will be available against which they can be utilized. The carrying amount
of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer
probable that sufficient taxable profits will be earned to allow related tax benefits to be realized.
In addition, exceptions to recognition and disclosure are applied with respect to deferred tax assets and liabilities
related to tax laws enacted to implement the Pillar 2 (global minimum tax) model rule of the tax base erosion and
profit shifting (BEPS) project announced by the Organization for Economic Cooperation and Development.
― 28 ―
(15) Impairment Losses
(i) Financial assets
Financial assets measured at amortized cost are assessed for impairment losses based on expected credit losses.
At the end of the reporting period, if credit risk has not increased significantly after initial recognition, the amount of
loss allowance is calculated based on the expected credit losses resulting from default events that are possible within
12 months after the reporting date (12-month expected credit losses). On the other hand, at the end of the reporting
period, if credit risk has increased significantly after initial recognition, the amount of loss allowance is calculated
based on the expected credit losses resulting from all possible default events over the life of the financial instrument
(lifetime expected credit losses).
However, regardless of the above, lifetime expected credit loss measurement always applies to trade receivables and
lease investment assets without a significant financing component.
For details, see "29. Financial Instruments (2) Matters concerning risk management".
(ii) Non-financial assets

Toyota Industries reviews carrying amounts of non-financial assets, excluding inventories and deferred tax assets, at
every reporting fiscal year-end to determine whether there is any indication of impairment. If there is any indication of
impairment, impairment testing is conducted based on the recoverable amount of the asset. Goodwill and intangible
assets with indefinite useful lives are tested annually for impairment regardless of whether there is any indication of
impairment.
A cash-generating unit (CGU), which is a unit for conducting impairment testing, is the smallest group of assets that
generates cash inflows that are generally independent of cash flows of other assets or groups of assets. A CGU for
goodwill is the smallest unit monitored for internal control purposes and is no larger than an operating segment before
aggregation. Impairment testing for goodwill is conducted at a CGU or a group of CGUs for the smallest unit
monitored for internal control purposes and within the scope of an operating segment before aggregation.
The recoverable amount of an asset or CGU is the greater of its value in use or its fair value less cost to sell. In
calculating the value in use, estimated future cash flows are discounted to the present value using a pre-tax discount
rate that reflects the time value of money and risks specific to the asset not considered in estimating future cash flows.
Because corporate assets do not generate independent cash inflows, if there is an indication that a corporate asset
may be impaired, impairment testing is conducted based on the recoverable amount for the CGU to which the
corporate asset belongs.
An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount. An
impairment loss recognized in relation to a CGU is allocated to reduce the carrying amount of assets within the CGU
on a pro rata basis determined by the relative carrying amount of each asset.
An asset or CGU impaired in prior years is reviewed at every reporting fiscal year-end to determine whether there is
any indication of a reversal of impairment loss recognized in prior years. The recoverable amount is estimated for an
impairment loss recognized in prior years for an asset or CGU with an indication of reversal of impairment, and the
impairment loss is reversed if the recoverable amount exceeds the carrying amount. The carrying amount after
reversal of the impairment loss must not exceed the carrying amount of the asset that would be determined if no
impairment had been recognized and the asset had been depreciated or amortized until the reversal. An impairment
loss recognized for goodwill is not reversed.
― 29 ―
(16) Earnings per Share
Basic earnings per share are calculated by dividing profit attributable to ordinary equity holders of the parent entity by
the weighted-average number of common stock issued and outstanding after adjusting treasury stock for each
calculation period. Diluted earnings per share take into account the impacts of all dilutive shares that bear the effects
of dilution in calculating the weighted-average number of shares issued and outstanding.
(17) Reporting by Segment

An operating segment is one of the constituent units of any business activity that earns revenue and incurs expenses,
including transactions with another operating segment. The results of all operating segments are such that their
financial information can be obtained individually and are periodically reviewed by the management for allocating
management resources to each segment and assessing operating performance.
― 30 ―
4. Segment Information
The operating segments reported below are the segments of Toyota Industries for which separate financial information
is available and are subject to evaluate regularly by executive management in deciding how to allocate resources and
in assessing performance.
The reporting segments of Toyota Industries consist of Automobile, Materials Handling Equipment and Textile
Machinery. The similarity of products and services are taken into account for the separation. Within the Automobile
Segment, vehicles, engines, car air-conditioning compressors and others are included due to the similarity of their
economic characteristics such as net sales. The main products and services of each segment are as follows.
Segment Main products and services of each segment

Vehicles, diesel and gasoline engines, foundry parts for engines, car air-conditioning
Automobile
compressors, electronics components, batteries
Materials Handling Lift trucks, warehouse trucks, automated storage and retrieval systems, aerial work
Equipment platforms, logistics solutions, sales financing business
Weaving machinery, spinning machinery, instruments for yarn testing and cotton
Textile Machinery
classing
The accounting method of reporting segment information is based on "3. Material Accounting Policies".
Segment profit is based on operating profit.
― 31 ―
(1) Operating segment information
(i) Sales, profits or losses, assets, liabilities and other material monetary information
FY2022 (April 1, 2021 - March 31, 2022)
(Millions of yen)
Materials
Textile
Automobile Handling Others Total Adjustments Consolidated
Machinery
Equipment
Sales
Outside customer
792,813 1,789,434 69,215 53,720 2,705,183 － 2,705,183
sales
Inter-segment sales
28,512 507 284 28,897 58,201 (58,201) －
and transfers
Total 821,326 1,789,941 69,499 82,617 2,763,385 (58,201) 2,705,183
Segment profit 33,007 113,616 5,549 7,147 159,319 (253) 159,066
Segment assets 748,397 2,431,790 71,994 262,429 3,514,612 4,112,507 7,627,120
Financial income 89,941
Financial expenses (7,282)
Share of profit of
investments accounted
4,397
for by the equity
method
Profit before income
246,123
taxes
(Notes) 1. "Others" represents businesses not included in the reporting segments, and its primary service is the land
transportation.
2 (253) million yen included in "Adjustments" for "Segment profit" is mainly inter-segment transactions.
"Adjustments" for "Segment assets" includes corporate assets.
Corporate assets mainly consist of the Company's cash and deposits as well as marketable securities and
investment securities.
3. "Segment profit" reconciles to operating profit disclosed in the consolidated statement of profit or loss.
Other material items

(Millions of yen)
Materials
Textile
Machinery
Equipment
Depreciation and
66,833 150,073 3,632 3,198 223,737 － 223,737
amortization
Impairment losses
(amount in parenthesis 25 2,343 －－ 2,368 － 2,368
has been reversed)
Investments accounted
for by the equity 5,965 15,316 49 6 21,337 － 21,337
method
Increase in property,
plant and equipment 103,961 192,206 1,606 4,548 302,322 － 302,322
and intangible assets
(Note) "Others" represents businesses not included in the reporting segments, and its primary service is the land
transportation.
― 32 ―
FY2023 (April 1, 2022 - March 31, 2023)
(Millions of yen)
Materials
Textile
Machinery
Equipment
Sales
Outside customer
957,803 2,283,833 84,309 53,943 3,379,891 － 3,379,891
sales
Inter-segment sales
35,132 1,088 279 32,224 68,724 (68,724) －
and transfers
Total 992,936 2,284,922 84,589 86,167 3,448,616 (68,724) 3,379,891
Segment profit 34,636 121,856 7,807 5,418 169,718 185 169,904
Segment assets 837,701 2,904,760 78,540 298,531 4,119,533 3,701,652 7,821,185
Financial income 103,728
Financial expenses (13,976)
Share of profit of
investments accounted
3,311
for by the equity
method
Profit before income
262,967
taxes
(Notes) 1. "Others" represents businesses not included in the reporting segments, and its primary service is the land
transportation.
2 185 million yen included in "Adjustments" for "Segment profit" is mainly inter-segment transactions.
"Adjustments" for "Segment assets" includes corporate assets.
Corporate assets mainly consist of the Company's cash and deposits as well as marketable securities and
investment securities.
3. "Segment profit" reconciles to operating profit disclosed in the consolidated statement of profit or loss.
Other material items

(Millions of yen)
Materials
Textile
Machinery
Equipment
Depreciation and
68,174 183,103 3,603 2,881 257,762 － 257,762
amortization
Impairment losses
(amount in parenthesis 58 2,576 －－ 2,634 － 2,634
has been reversed)
Investments accounted
for by the equity 6,408 17,522 49 6 23,987 － 23,987
method
Increase in property,
plant and equipment 103,031 263,023 4,445 2,698 373,199 － 373,199
and intangible assets
(Note) "Others" represents businesses not included in the reporting segments, and its primary service is the land
transportation.
― 33 ―
(2) Sales by product
Outside customer sales by product consist of the following.
(Millions of yen)
FY2022 FY2023
(April 1, 2021 - March 31, 2022) (April 1, 2022 - March 31, 2023)
Automobile 792,813 957,803
Vehicle 83,463 83,112
Engine 267,639 322,404
Car air-conditioning compressor 356,196 429,733
Electronics parts and others 85,513 122,553
Materials Handling Equipment 1,789,434 2,283,833
Textile Machinery 69,215 84,309
Others 53,720 53,943
Total 2,705,183 3,379,891
(3) Geographical information

Outside customer sales by geography consist of the following.
(Millions of yen)
FY2022 FY2023
Japan 753,808 875,460
U.S.A. 805,746 1,143,168
Others 1,145,628 1,361,262
Total 2,705,183 3,379,891
(Note) Net sales are provided by location of customer.
Non-current assets by geography consist of the following.

(Millions of yen)
FY2022 FY2023
Japan 563,533 600,178
U.S.A. 432,615 489,471
Netherlands 176,892 190,765
Others 361,994 433,657
Total 1,535,036 1,714,073
(Note) Non-current assets (excluding financial instruments, deferred tax assets, net defined benefit asset, and rights
arising from insurance contracts) are provided by location of assets.
(4) Principal customer information

Toyota Industries sells goods to DENSO Corporation and its subsidiaries. Sales from DENSO and its subsidiaries
amounted to 375,072 million yen and 468,975 million yen for the fiscal years ended March 31, 2022 and 2023,
respectively and were included in the outside customer sales of the Automobile, Materials Handling Equipment and
Others segments.
Toyota Industries sells goods and provides services to Toyota Motor Corporation and its subsidiaries. Sales from
Toyota Motor Corporation and its subsidiaries amounted to 379,530 million yen and 462,128 million yen for the fiscal
years ended March 31, 2022 and 2023, respectively and were included in the outside customer sales of the Automobile,
Materials Handling Equipment and Others segments.
― 34 ―
5. Cash and Cash Equivalents
Cash and cash equivalents consist of the following.
(Millions of yen)
FY2022 FY2023
Cash and deposits 247,085 202,731

Short-term investments (securities) which have
－－
an original maturity within three months
Total 247,085 202,731
The balance of cash and cash equivalents on the consolidated statement of financial position as of the end of the fiscal
years ended March 31, 2022 and 2023 are consistent with the balances of cash and cash equivalents on the
consolidated statement of cash flows.
These short-term investments are financial assets measured at amortized cost.
6. Trade Receivables and Other Receivables

Trade receivables and other receivables consist of the following.
(Millions of yen)
FY2022 FY2023
Trade notes and accounts receivable 471,528 589,841

Contract assets 51,170 74,386
Loans for sales financing 174,398 256,943
Accounts receivable - other 40,854 48,895
Lease investment assets 398,090 443,652
Others 21 18
Elimination: Allowance for doubtful accounts (12,236) (13,521)
Total 1,123,826 1,400,216
These receivables are mainly financial assets measured at amortized cost.
Amounts by collection or settlement period consist of the following.

(Millions of yen)
FY2022 FY2023
Due within 12 months 741,642 924,049

Due after 12 months 382,183 476,166
Total 1,123,826 1,400,216
― 35 ―
7. Other Financial Assets
(1) Outline of other financial assets
Other financial assets consist of the following.
(Millions of yen)
FY2022 FY2023
Loans 2,324 2,927

Stock 3,697,319 3,285,180
Derivative assets 24,457 31,432
Others 23,549 24,363
Total 3,747,650 3,343,904
Current assets 12,672 5,399

Non-current assets 3,734,978 3,338,505
Total 3,747,650 3,343,904
Loans are categorized as financial assets measured at amortized cost, stock is mainly categorized as financial assets
measured at fair value through other comprehensive income and derivative assets are categorized as financial assets
measured at fair value through profit or loss (excluding items for which hedge accounting is applied). With respect to
equity instruments measured at fair value through profit or loss included in stock or others, there is no monetary
significance.
(2) Financial assets measured at fair value through other comprehensive income
Toyota Industries designates investments in equity instruments held for maintaining and reinforcing business relations
as financial assets measured at fair value through other comprehensive income in consideration of the purpose of
holding them.
Name and fair values of financial assets measured at fair value through other comprehensive income consist of the
following.
(Millions of yen)
FY2022 FY2023
Name
Toyota Motor Corporation 2,649,955 2,241,582

DENSO Corporation 545,269 516,341
Toyota Tsusho Corporation 199,187 221,232
TOYOTA FUDOSAN Co., Ltd. 109,065 125,013
AISIN Corporation 86,883 75,492
Ibiden Co., Ltd. 37,647 32,731
Toyota Boshoku Corporation 15,529 16,576
JTEKT Corporation 7,531 7,977
Toray Industries, Inc. 4,589 5,434
TOYOTA-KAI Medical Corporation 4,445 4,445
Others 43,546 44,718
Total 3,703,652 3,291,545
― 36 ―
(3) Derecognition of financial assets measured at fair value through other comprehensive income
To increase efficiency and promote the effective use of assets in holding, a part of financial assets measured at fair
value through other comprehensive income is sold, thereby terminating recognition thereof.
Fair value at the time of sale and cumulative profit or loss recognized as other comprehensive income for each fiscal
year consist of the following. Concerning the dividends recognized during the fiscal year ended March 31, 2023, those
relating to the investment whose recognition was suspended during the fiscal year were immaterial. Cumulative profit
or loss related to the disposal of financial liabilities is fully reclassified into retained earnings.
(Millions of yen)
FY2022 FY2023
Fair value at the time of termination of recognition 782 798

Cumulative profit or loss related to disposal 486 477
(Note) Financial assets measured at fair value through other comprehensive income include debt instruments but
they were immaterial.
8. Inventories
Inventories consist of the following.
(Millions of yen)
FY2022 FY2023
Merchandise and finished goods 202,829 255,592

Work in process 109,152 136,470
Raw materials and supplies 121,980 132,322
Total 433,961 524,385
Expenses reclassified from inventories amount to 2,097,501 million yen and 2,623,707 million yen for the fiscal years
ended March 31, 2022 and 2023, respectively.
The amount of inventory write-down recognized as expenses (continuing business) and the reversal amount of write-
down consist of the following.
(Millions of yen)
FY2022 FY2023
Amount of write-down 5,295 2,885

Reversal amount of write-down 565 1,157
― 37 ―
9. Property, Plant and Equipment
(1) Increase (decrease)
Acquisition cost (Millions of yen)
Leases as
Other than leases as lessor
lessor
Total
Buildings Tools,
Machinery Construction Machinery
and furniture and Land
and vehicles in progress and vehicles
structures fixtures
Balance as of April 1,
563,556 1,009,163 158,509 145,679 68,389 565,529 2,510,827
2021
Acquisition 21,077 42,001 9,519 1,977 105,398 101,391 281,366
Disposal (7,125) (34,355) (6,663) (290) (80) (51,405) (99,920)

Transfer from
Construction in 26,990 59,807 6,713 18 (111,088) 17,559 －
progress
Foreign currency
18,319 35,002 8,048 1,375 2,143 52,285 117,173
translation difference
Others 1,244 315 103 726 (3,608) (42,451) (43,669)
Balance as of March
624,062 1,111,935 176,229 149,486 61,154 642,909 2,765,778
31, 2022
Acquisition 36,470 47,511 10,670 4,271 96,450 145,340 340,714
Disposal (15,580) (31,069) (8,672) (186) (83) (55,944) (111,536)

Transfer from
Construction in 18,347 47,992 9,412 4,042 (99,243) 19,448 －
progress
Foreign currency
13,387 23,687 4,590 709 1,782 39,089 83,248
Others 2,926 (971) 1,144 1,610 (969) (61,664) (57,925)
Balance as of March
679,614 1,199,086 193,376 159,933 59,090 729,178 3,020,280
31, 2023
(Notes) 1. The amount related to property, plant and equipment in progress is presented as "Construction in progress".
2. "Others" includes "Inventories" related to materials handling equipment for operating lease and others.
― 38 ―
Accumulated depreciation and accumulated impairment losses (Millions of yen)
Leases as
lessor
Total
Buildings Tools,
structures fixtures
304,887 769,276 128,326 1,610 － 263,321 1,467,421
2021
Depreciation 27,115 64,190 14,631 323 － 91,498 197,758
Disposal (6,117) (31,312) (6,396) (70) － (31,459) (75,356)

Impairment losses
(Reversal of 1 20 (0) 0 － 2,347 2,368
impairment losses)
Foreign currency
8,192 27,684 6,436 21 － 24,679 67,013
Others (112) 7,093 20 138 － (34,639) (27,500)
Balance as of March
333,965 836,951 143,017 2,023 － 315,747 1,631,704
31, 2022
Depreciation 31,680 67,692 15,909 296 － 112,131 227,709
Disposal (12,306) (29,215) (8,455) (24) － (37,713) (87,716)

Impairment losses
(Reversal of 251 58 － (6) － 2,331 2,634
impairment losses)
Foreign currency
5,449 19,835 3,826 5 － 17,018 46,134
Others 1,003 7,374 742 1,212 － (48,060) (37,727)
Balance as of March
360,043 902,696 155,039 3,505 － 361,454 1,782,739
31, 2023
(Note) Depreciation and impairment losses of property, plant and equipment is included in mainly "Cost of sales" and
"Selling, general and administrative expenses" in the consolidated statement of profit or loss.
Carrying amount (Millions of yen)
Leases as
lessor
Total
Buildings Tools,
structures fixtures
258,669 239,887 30,183 144,069 68,389 302,207 1,043,405
2021
Balance as of March
290,097 274,984 33,212 147,463 61,154 327,162 1,134,074
31, 2022
Balance as of March
319,571 296,389 38,336 156,427 59,090 367,724 1,237,540
31, 2023
― 39 ―
10. Goodwill and Intangible Assets
(1) Increase (decrease)
Acquisition cost (Millions of yen)
Intangible
assets
recognized Development
Goodwill Software Others Total
through assets
business
combination
Balance as of April 1, 2021 170,865 182,906 42,868 91,392 16,776 504,809
Acquisition －－－ 6,617 3,187 9,804
Increase through
－－ 7,995 3,154 － 11,150
in-house development
Disposal － (5,637) (950) (744) (477) (7,810)
Foreign currency
15,436 14,515 1,819 3,156 2,876 37,804
Others 5,317 3,656 － 73 (2,398) 6,648
Balance as of March 31,

191,619 195,440 51,732 103,650 19,964 562,406
2022
Acquisition －－－ 16,285 89 16,374
Increase through
－－ 11,479 4,631 － 16,110
in-house development
Disposal －－ (970) (1,030) (102) (2,103)
Foreign currency
16,351 15,376 2,093 1,993 3,838 39,654
Others 23,637 18,346 (95) 571 90 42,550

231,608 229,162 64,239 126,101 23,880 674,992
2023
― 40 ―
Accumulated amortization and accumulated impairment losses (Millions of yen)
Intangible
assets
through assets
business
combination
Balance as of April 1, 2021 － 51,014 20,049 61,950 8,344 141,359
Amortization － 9,053 6,413 8,960 1,552 25,978
Disposal － (5,637) (950) (641) (31) (7,261)

Impairment losses
(Reversal of impairment －－－－－－
losses)
Foreign currency
－ 4,783 833 2,176 2,084 9,876
Others －－－ 9 (3,438) (3,429)

－ 59,214 26,344 72,454 8,510 166,524
2022
Amortization － 10,767 8,471 9,078 1,735 30,053
Disposal －－ (970) (1,022) (102) (2,095)

Impairment losses
(Reversal of impairment －－－－－－
losses)
Foreign currency
－ 4,991 1,004 1,550 3,164 10,711
Others －－－ 1,430 (0) 1,430

－ 74,973 34,850 83,492 13,307 206,624
2023
(Note) Amortization of intangible assets is included in "Cost of sales" and "Selling, general and administrative
expenses" in the consolidated statement of profit or loss.
Carrying amount (Millions of yen)

Intangible
assets
through assets
business
combination
Balance as of April 1, 2021 170,865 131,891 22,819 29,441 8,431 363,449

191,619 136,226 25,387 31,195 11,453 395,882
2022
231,608 154,189 29,388 42,608 10,573 468,368
2023
(Notes) 1. Intangible assets recognized through business combination include customer-related assets and
technology-related assets.
2. Development assets in progress included in development assets amounts to 7,536 million yen and 5,284
million yen as of the end of the fiscal years ended March 31, 2022 and 2023, respectively. Software in
progress included in software amounts to 9,808 million yen and 18,782 million yen as of the end of the fiscal
years ended March 31, 2022 and 2023, respectively.
― 41 ―
(2) Impairment testing of goodwill and intangible assets with an indefinite useful life
Toyota Industries performs, with respect to goodwill, impairment testing as necessary during each period or in case
there is a sign of impairment. The recoverable value in impairment testing is calculated based on value in use.
Value in use is calculated by discounting the estimated amount of cash flows based on the business plan for the next
five years that has been primarily approved by the management in present value. The estimation of cash flows is
based on the assumption that cash flows of more than five years will increase at a certain growth rate. The growth rate
is determined by referencing the long-term expected growth rate of the market in which cash-generating units belong
(about 0 to 3%). The discount rate is calculated based on the weighted-average capital cost before tax of cash-
generating units (about 8 to 9%).
Toyota Industries concluded that even if there were reasonably possible changes in key assumptions used in the
impairment assessment, it is unlikely that a material impairment would arise.
With respect to the balance of goodwill as of the end of the fiscal years ended March 31, 2022 and 2023, major items
include: goodwill recognized in conjunction with the acquisition of the Cascade Corporation Group in the Materials
Handling Equipment Segment; goodwill recognized in conjunction with the business transfer of Toyota Industries
Commercial Finance, Inc. (TICF); goodwill recognized in conjunction with the acquisition of the Vanderlande Group;
goodwill recognized in conjunction with the acquisition of the Bastian Group; and goodwill recognized in conjunction
with the acquisition of the Uster Technologies AG Group in the Textile Machinery Segment. Goodwill recognized in
conjunction with the acquisition of the Cascade Corporation Group is allocated to the Materials Handling Equipment
Business which is functioning as the cash-generating unit and amounts to 29,903 million yen and 32,625 million yen as
of the end of the fiscal years ended March 31, 2022 and 2023, respectively. Goodwill recognized in conjunction with the
business transfer of TICF is allocated to the Materials Handling Equipment Business in North America which is
functioning as the cash-generating unit and amounts to 28,708 million yen and 31,321 million yen as of the end of the
fiscal years ended March 31, 2022 and 2023, respectively. Goodwill recognized in conjunction with the acquisition of
the Vanderlande Group is allocated to the Material Handling Equipment Business which is functioning as the cash-
generating unit and amounts to 67,852 million yen and 72,283 million yen as of the end of the fiscal years ended March
31, 2022 and 2023, respectively. Goodwill recognized in conjunction with the acquisition of the Bastian Group is
allocated to the Material Handling Equipment Business which is functioning as the cash-generating unit and amounts to
15,752 million yen and 17,185 million yen as of the end of the fiscal years ended March 31, 2022 and 2023,
respectively. Goodwill recognized in conjunction with the acquisition of the viastore Group is allocated to the Material
Handling Equipment Business which is functioning as the cash-generating unit and amounts to 24,349 million yen as of
the end of the fiscal year ended March 31, 2023. Goodwill recognized in conjunction with the acquisition of the Uster
Technologies AG Group is allocated to Uster Technologies AG group and amounts to 19,108 million yen and 20,725
million yen as of the end of the fiscal years ended March 31, 2022 and 2023, respectively.
Intangible assets with an indefinite useful life included in intangible assets recognized on business combinations
amounted to 42,134 million yen and 45,403 million yen at the end of the fiscal years ended March 31, 2022 and 2023,
respectively. These assets are primarily related to trademark recognized in connection with the acquisition of the
Vanderlande Group in the Materials Handling Equipment Segment. The Toyota Industries Group determined the useful
life to be indefinite because the trademark will survive for as long as the business continues. Intangible assets with an
indefinite useful life recognized in connection with the acquisition of the Vanderlande Group were allocated on the basis
that the Vanderlande Group is a group of cash-generating units and amounted to 24,742 million yen and 26,375 million
yen at the end of the fiscal years ended March 31, 2022 and 2023, respectively.
― 42 ―
11. Investments Accounted for by the Equity Method
There are no affiliates of individual significance in the fiscal years ended March 31, 2022 and 2023. The carrying
amounts of investments in affiliates consist of the following.
(Millions of yen)
FY2022 FY2023
Total carrying amount 21,337 23,987
The amounts of equity in comprehensive income of affiliates of no individual significance consist of the following.
(Millions of yen)
FY2022 FY2023
Amount of equity in profit 4,397 3,311

Amount of equity in other comprehensive
1,122 158
income
Amount of equity in comprehensive income 5,519 3,469
12. Trade Payables and Other Payables

Trade payables and other payables consist of the following.
(Millions of yen)
FY2022 FY2023
Trade notes and accounts payable 378,324 433,353

Accounts payable - other 45,279 50,039
Contract liabilities 140,730 120,428
Others 181,218 203,652
Total 745,553 807,474
Trade payables and other payables are primarily financial liabilities measured at amortized cost. "Others" mainly
includes short-term employee debt and accrued expenses.
Breakdown by period until payment or settlement consists of the following.

(Millions of yen)
FY2022 FY2023
Due within 12 months 745,552 807,474

Due after 12 months 0 0
Total 745,553 807,474
― 43 ―
13. Corporate Bonds and Loans
Corporate bonds and loans consist of the following.
(Millions of yen)
Average
FY2022 FY2023 Repayment
interest rate
(As of March 31, 2022) (As of March 31, 2023) due
(%)
Short-term loans 117,066 110,132 4.40 －
Commercial paper 65,203 180,605 －－
Long-term loans repaid within one year 118,456 132,842 1.26 －
Corporate bonds redeemed within

167,777 96,169 －－
one year
April 2024 -
Long-term loans 645,484 882,176 1.85
August 2039
Corporate bonds 276,526 297,213 －－
Total 1,390,515 1,699,139 －－
(Note) The average interest rate reflects the weighted-average interest rate against the balance at the end of the
fiscal year ended March 31, 2023. Rates for corporate bonds are indicated in the summary of issuance terms
of corporate bonds.
Corporate bonds and loans are financial liabilities measured at amortized cost.
― 44 ―
The summary of issuance terms of corporate bonds consists of the following.
(Millions of yen)
FY2022 FY2023 Interest

Company
Name (As of March 31, (As of March 31, rate Collateral Issuance date Maturity date
name
2022) 2023) (%)
22nd issuance of
The
corporate bonds 9,998 －－－－－
Company
without collateral
24th issuance of
The 9,999 September 5, June 20,
corporate bonds 9,995 0.797 None
Company (9,999) 2013 2023
without collateral
28th issuance of
The
Company
without collateral
29th issuance of
The July 15, June 19,
corporate bonds 19,971 19,978 0.080 None
Company 2016 2026
without collateral
32nd issuance of
The
Company
without collateral
33rd issuance of
The April 27, June 20,
corporate bonds 9,990 9,994 0.150 None
Company 2017 2024
without collateral
1st issuance of
U.S. dollar-
The 61,127
denominated －－－－－
Company [USD499 million]
senior unsecured
notes
2nd issuance of
U.S. dollar-
The 60,959 66,568 March 16, March 16,
denominated 3.566 None
Company [USD498 million] [USD498 million] 2018 2028
senior unsecured
notes
35th issuance of
The 9,997 November 28, September 20,
Company (9,997) 2018 2023
without collateral
36th issuance of
The 29,995 July 9, June 20,
Company (29,995) 2020 2023
without collateral
― 45 ―
(Millions of yen)
FY2022 FY2023 Interest

Company
Name (As of March 31, (As of March 31, rate Collateral Issuance date Maturity date
name
2022) 2023) (%)
Toyota
October 25, May 30,
Industries 56,777 0.427
Medium-term 73,879 2017 － 2023 －
Finance [EUR390 million] － None
notes [EUR540 million] February 14, February 12,
International (17,467) 3.142
2022 2027
AB
Toyota
Industries
Medium-term 9,261 2,580 November 15, November 15,
Finance 1.400 None
notes [SEK700 million] [SEK200 million] 2017 2024
International
AB
Toyota
Industries
Medium-term 6,731 7,344 September 27, September 27,
Finance 5.834 None
notes [USD55 million] [USD55 million] 2019 2024
International
AB
Toyota
Industries
Medium-term 2,760 2,690 July 6, July 6,
Finance 1.830 None
notes [AUD30 million] [AUD30 million] 2020 2027
International
AB
Toyota April 17, April 17,

177,457 1.205
Industries Medium-term 109,661 2018 － 2023 －
[USD1,328 million] － None
Commercial notes [USD896 million] March 13, March 13,
(28,708) 6.304
Finance, Inc. 2023 2030
393,382
Total － 444,303 －－－－
(96,169)
(Notes) 1. The figure in parentheses in the "FY2023" is the amount to be redeemed within one year.
2. "Interest rate" indicates the interest rate against the balance at the end of the fiscal year ended March 31,
2023.
3. "Collateral" indicates any collateral associated with the balance at the end of the fiscal year ended March
31, 2023.
4. "Issuance date" indicates the issuance date associated with the balance at the end of the fiscal year ended
March 31, 2023.
5. "Maturity date" indicates the maturity date associated with the balance at the end of the fiscal year ended
March 31, 2023.
― 46 ―
14. Other Financial Liabilities
Other financial liabilities consist of the following.
(Millions of yen)
FY2022 FY2023
Lease liabilities 132,735 140,933

Derivative liabilities 8,905 9,577
Deposits payable 36,505 37,643
Total 178,147 188,154
Current liabilities 82,909 83,749

Non-current liabilities 95,237 104,404
Total 178,147 188,154
Deposits payable is categorized as financial liabilities measured at amortized cost and derivative liabilities are
categorized as financial liabilities measured at fair value through profit or loss (excluding items for which hedge
accounting is applied).
15. Assets Pledged as Collateral and Secured Liabilities

Assets pledged as collateral consist of the following.
(Millions of yen)
FY2022 FY2023
Trade receivables and other receivables 2,895 35,862

Inventories 3,501 4,966
Property, plant and equipment 5 9
Investment securities 201,650 186,460
Total 208,051 227,297
Secured liabilities consist of the following.

Security interest may be exercised in case there is non-fulfillment of a loan agreement.
(Millions of yen)
FY2022 FY2023
Short-term loans 3,501 31,805

Others 32,943 32,092
Total 36,445 63,898
(Note) "Others" mainly includes Deposits received from employees.
― 47 ―
16. Provisions
Provisions are recorded in current liabilities and non-current liabilities on the consolidated statement of financial
position.
Increase (decrease) of provisions in the fiscal years ended March 31, 2022 and 2023 consist of the following.
(Millions of yen)
Asset retirement
Warranty provision Others Total
obligation
Balance as of April 1, 2021 13,813 2,057 7,698 23,569
Increase due to provisions 14,065 160 3,071 17,297
Decrease due to intended use (11,807) (36) (1,561) (13,405)
Decrease due to reversal (380) － (1,073) (1,454)
Interest expenses based on discount
calculation, foreign currency 504 105 607 1,217
translation difference and others
Balance as of March 31, 2022 16,194 2,288 8,741 27,225
Increase due to provisions 20,397 103 16,364 36,864
Decrease due to intended use (7,766) (225) (3,967) (11,959)
Decrease due to reversal (509) － (670) (1,180)
Interest expenses based on discount
calculation, foreign currency 499 212 1,192 1,903
translation difference and others
Balance as of March 31, 2023 28,814 2,379 21,660 52,853
The warranty provision is recorded by recognizing the amount of expected expense payments required for future
repairs. It is expected in many cases that a repair or a payment is made within a year, while repairs or payments for
some items are made over a longer period of time because customers take longer to physically return defective
products. Regarding specific products for which the implementation of countermeasures against failures has been
determined, the warranty provision is recorded by individually assessing the amounts expected to be incurred, based
on estimates of fault rectification cost per unit, the number of units subject to fault rectification, and other market
measures. Moreover, the number of units subject to fault rectification is estimated based on the actual result of past
recalls and other market measures. In the event that a warranty obligation arises due to defects in the Company's
products which were not anticipated in the initial estimate of the provision or that the amount of warranty expense
exceeds the amount of the provision, there is a possibility that an additional warranty provision will be required. On the
other hand, if the actual warranty expense is lower than the initial estimate, a reversal of the warranty provision will be
recorded. During this fiscal year, the warranty provision includes provision for market measures related to the issue of
the certification 9,653 million yen of engines for markets in Japan.
Asset retirement obligations are accounted for by recognizing provision for asset demolition/disposal expenses,
expenses for restoring an asset to its original condition and payments arising as a result of using assets as well as by
adding to the acquisition cost of the respective assets (property, plant and equipment, such as buildings). The
respective assets are depreciated over the number of years of depreciation as indicated "3. material Accounting
Policies".
"Others" mainly includes provision for litigation. Provisions of 11,079 million yen related to domestic engine certification
matter are also included in the fiscal year under review. Moreover, an allowance is provided for the estimated cost
arising from the suspension of shipments, including coverage for substitute trucks that arises in connection with delays
in delivery of ordered lift trucks and redress for suppliers. The estimated amount is based on the monthly cost incurred
and shipment suspension period by lift truck model. This calculation is based on estimates and is inherently subject to
uncertainty. Accordingly, actual expenses may differ from estimates, and there is a possibility that additional provisions
or a reversal of provisions will become necessary. These costs arising from suspension of shipments are expected to
be paid during the next fiscal year.
― 48 ―
17. Employee Benefits
In regard to total expenses for employee benefits plans including other than post-employment plans, refer to "21.
Breakdown of Expenses by Nature".
(1) Overview of post-employment plans adopted

To provide for employee retirement benefits, Toyota Industries has adopted pension and lump-sum payment defined
benefit plans as well as defined contribution pension plans. The amount of benefits under the defined benefit plans is
determined based on points earned by employees based on factors such as the number of years of service and grades,
the employee's final salary, the number of years of service and other terms. Furthermore, to provide for future benefits,
Toyota Industries makes contributions based on actuarial calculations using an estimated rate of wages and salaries.
The defined benefit pension plan, in compliance with relevant laws and regulations and with the consent of the
employees, sets the pension agreement stipulating the policy around eligibility, what is provided through the plan and
the contributions to be made by the Company. The agreement is approved by the Minister of Health, Labour, and
Welfare. Under the agreement, the Company enters into a contract with an entrusted pension management institution
on the payment of contributions as well as the management of plan assets to operate the pension plan. The pension
management institution has a fiduciary responsibility to manage the plan assets in accordance with the agreement.
Furthermore, a retirement benefit trust is set for some plans in Japan. Some subsidiaries outside Japan also adopt a
wide range of defined benefit plans in accordance with local laws and regulations.
(2) Defined benefit plans

The defined benefit plans related amounts recognized on the consolidated statement of financial position consists of
the following.
(Millions of yen)
FY2022 FY2023
Retirement benefit obligations 305,449 281,472

Fair value of plan assets 273,001 258,252
Difference 32,447 23,219
Effect of asset ceiling 21,820 30,315
Net defined benefit assets 37,408 27,887
Net defined benefit liabilities 91,677 81,422
(Note) Some plan assets offer availability of economic benefit through a refund based on which the asset ceiling is
calculated. The transition of the asset ceiling from the balance at the beginning of the period to the balance at
the end of the period is as indicated above.
― 49 ―
(i) Fluctuations of present value of defined benefit obligations
(Millions of yen)
Japan Outside Japan
FY2022 FY2023 FY2022 FY2023
(April 1, 2021 - (April 1, 2022 - (April 1, 2021 - (April 1, 2022 -
March 31, 2022) March 31, 2023) March 31, 2022) March 31, 2023)
Balance at beginning of period 188,288 185,555 122,147 119,893
Service cost 9,636 9,158 2,310 2,764
Interest cost 1,176 1,423 2,525 3,436
Remeasurements
Actuarial gains (losses) arising
from changes in demographic (1,007) 1,096 (952) (1,160)
assumptions
Actuarial gains (losses) arising
from changes in financial (3,444) (10,515) (10,702) (24,869)
assumptions
Difference arising from revised
139 (754) (2,627) 4,216
results
Prior service cost (271) (9) (8) 21
Retirement benefits paid (9,005) (8,881) (3,515) (3,979)
Effect of foreign currency
－－ 8,658 4,565
translation
Others 42 37 2,057 (526)
Balance at end of period 185,555 177,110 119,893 104,361
The weighted-average duration associated with Toyota Industries' defined benefit obligation is 14.4 years in Japan and
17.8 years outside Japan for the fiscal year ended March 31, 2022 and 14.1 years in Japan and 15.6 years outside
Japan for the fiscal year ended March 31, 2023.
(ii) Fluctuations of fair value of plan assets

(Millions of yen)
Japan Outside Japan
FY2022 FY2023 FY2022 FY2023
(April 1, 2021 - (April 1, 2022 - (April 1, 2021 - (April 1, 2022 -
March 31, 2022) March 31, 2023) March 31, 2022) March 31, 2023)
Balance at beginning of period 184,722 190,598 72,230 82,403
Interest income 1,227 1,469 1,565 2,359
Revenue associated with plan
assets (excluding interest 3,906 (7,751) (1,791) (15,378)
income above)
Employer contributions 4,936 4,882 2,101 4,513
Return to employer －－－－
Benefit payment (4,179) (4,204) (2,949) (3,106)
Exchange impact －－ 9,158 4,450
Others (15) (6) 2,086 (1,978)
Balance at end of period 190,598 184,988 82,403 73,264
The projected amount of contributions to plan assets in the fiscal year ending March 31, 2024 is 7,326 million yen.
― 50 ―
(iii) Classes of plan asset
The classes of plan assets for the fiscal year ended March 31, 2022 consisted of the following.
(Millions of yen)
Japan Outside Japan
Items with Items with no Items with Items with no

published published published published
Total Total
value in an value in an value in an value in an
active market active market active market active market
Stock 53,660 － 53,660 23,050 － 23,050

Jointly managed trust (Stock) － 30,409 30,409 － 7,184 7,184
Bonds － 420 420 － 12,694 12,694
Jointly managed trust (Bonds) － 54,615 54,615 － 18,668 18,668
Life insurance general account － 25,024 25,024 － 3,725 3,725
Others 6,971 19,495 26,467 15,436 1,643 17,079
Total plan assets 60,631 129,966 190,598 38,487 43,916 82,403
(Notes) 1. "Stock" includes 53,432 million yen in retirement benefits trusts established for the lump-sum retirement
benefits plans.
2. "Others" includes cash and deposits, etc.
The classes of plan assets for the fiscal year ended March 31, 2023 consisted of the following.
(Millions of yen)
Japan Outside Japan
Items with Items with no Items with Items with no

published published published published
Total Total
value in an value in an value in an value in an
active market active market active market active market
Stock 50,860 － 50,860 14,495 － 14,495

Jointly managed trust (Stock) － 25,108 25,108 － 2,825 2,825
Bonds － 384 384 － 12,688 12,688
Jointly managed trust (Bonds) － 55,884 55,884 － 20,185 20,185
Life insurance general account － 25,483 25,483 － 3,370 3,370
Others 7,581 19,685 27,266 19,120 578 19,699
Total plan assets 58,442 126,546 184,988 33,616 39,648 73,264
(Notes) 1. "Stock" includes 50,597 million yen in retirement benefits trusts established for the lump-sum retirement
benefits plans.
2. "Others" includes cash and deposits, etc.
Toyota Industries' basic policy for managing plan assets aims to secure profits required over the long term, within the
scope of acceptable risks, to meet future benefit payment requirements under the defined benefit corporate pension
contract.
The targeted earnings rate is the earnings rate necessary to maintain the sound operation of the defined benefit
corporate pension into the future, which specifically means that the earnings rate exceeds the expected rate which
becomes the basis of calculation of future contribution under pension finance.
Both the Company and the institution entrusted with management are to confirm that the asset allocation for achieving
management's target is consistent with the basic investment policy and that the asset allocation ratios are revised as
required.
The basic policy may be amended in accordance with changes to the conditions of the Company and the systems and
the environment surrounding the Company.
― 51 ―
(iv) Actuarial assumptions
Important actuarial assumptions (weighted average) used for the calculation of the present value of the defined benefit
obligation consist of the following.
Japan Outside Japan
FY2022 FY2023 FY2022 FY2023
(As of March 31, 2022) (As of March 31, 2023) (As of March 31, 2022) (As of March 31, 2023)
Discount rate 0.83% 1.32% 2.95% 4.54%
In cases where the discount rate fluctuates at the ratios indicated below, assuming there are no changes to other
assumptions, the defined benefit obligation as of the end of the fiscal year ended March 31, 2022 and 2023 would have
been impacted as follows. While the sensitivity analysis assumes that there are no changes in other assumptions, it is
possible that changes in other assumptions could impact the sensitivity analysis.
(Millions of yen)
FY2022 FY2023
0.5% increase (10,316) (9,336)
Japan
0.5% decrease 11,453 10,185
Discount rate
0.5% increase (7,963) (5,783)
Outside Japan
0.5% decrease 8,539 6,213
(3) Defined contribution pension plan

The amount of contributions paid for the defined contribution pension plan for the fiscal years ended March 31, 2022
and 2023 were 13,007 million yen and 15,757 million yen, respectively. Welfare insurance premiums are accounted for
in the defined contribution pension plan and included in employee benefits expenses.
(4) Multi-employer plan

Certain subsidiaries in Japan participate in corporate pension funds of a multi-employer plan. Because the plan is a
multi-employer-type defined benefit plan and the amount of pension investment corresponding to the contribution by
one's own company cannot be rationally calculated, the amount of contribution required is accounted for as retirement
benefit expenses.
The amount of the contribution required in each fiscal year consists of the following.
(Millions of yen)
FY2022 FY2023
Contributions 58 58
The projected contribution in the fiscal year ending March 31, 2024 is 58 million yen.
The funded and unfunded status, on an aggregation basis of the Group's entire plans are as follows.
(Millions of yen)
FY2022 FY2023
Plan assets 43,545 45,245
Actuarial liability based on pension plan finance
48,183 49,644
calculation and minimum actuarial reserve
Funded/(Unfunded) amount (4,637) (4,398)
The rate of contributions of Toyota Industries within the entire plan consists of the following.
FY2022 FY2023
Rate of contribution 5.60% 5.53%
― 52 ―
18. Equity and Other Equity Items
(1) Capital stock and capital surplus
The Companies Act in Japan stipulates that no less than half of the payment or performance for issuing equity shall be
incorporated into capital stock, and the remaining amount shall be incorporated into capital surplus, which is included in
capital reserve. Moreover, the capital reserve may be incorporated into capital stock by a resolution of the General
Meeting of Shareholders under the Companies Act.
The number of shares authorized in the fiscal years ended March 31, 2022 and 2023 is 1,100,000,000 shares,
respectively.
The breakdown of changes in the number of shares issued and fully paid consist of the following.
Number of shares Capital stock Capital surplus

(Shares) (Millions of yen) (Millions of yen)
Beginning of FY2022 (As of April 1, 2021) 325,840,640 80,462 102,307
Increase (decrease) during period －－ 81
FY2022 (As of March 31, 2022) 325,840,640 80,462 102,388
Increase (decrease) during period －－ (1,143)
FY2023 (As of March 31, 2023) 325,840,640 80,462 101,245
(Note) All shares issued by the Company are common stock, which has no restrictions on the content of rights and no
par value.
(2) Retained earnings

The Companies Act stipulates that one tenth of the surplus that would decrease due to the distribution of dividend of
surplus shall be accumulated as capital reserve or retained earnings until the total amount of capital reserve and
retained earnings reaches one fourth of capital. Accumulated retained earnings may be appropriated to compensate for
losses. Moreover, retained earnings may be reduced by a resolution of the General Meeting of Shareholders.
In addition, the distributable amount under the Companies Act is calculated based on statutory capital surplus and
retained earnings in accordance with accounting standards generally accepted in Japan, and statutory capital reserve
and legal retained earnings are excluded from the distributable amount.
― 53 ―
(3) Treasury stock
The Companies Act stipulates that treasury stock may be acquired with a resolution of the General Meeting of
Shareholders deciding the number of shares to be acquired, the total amount of the acquisition price and other matters
within the scope of the distributable amount. Moreover, if through market transactions or tender offers, treasury stock
may be acquired by a resolution of the meeting of the Board of Directors within the scope of the requirements
stipulated by the Companies Act, in accordance to the provisions of the Articles of Incorporation.
Changes in the number and balance of treasury stock consist of the following.
Number of shares (Shares) Amount (Millions of yen)
Beginning of FY2022 (As of April 1, 2021) 15,358,862 59,321

Increase (decrease) during period 1,924 18
FY2022 (As of March 31, 2022) 15,360,786 59,339
Increase (decrease) during period 736 5
FY2023 (As of March 31, 2023) 15,361,522 59,345
(4) Other components of equity

(i) Net changes in revaluation of FVTOCI financial assets
It is the accumulated amount of net changes in revaluation of financial assets measured at fair value through other
comprehensive income.
(ii) Remeasurements of defined benefit plans

Remeasurements of defined benefit plans show the amount affected by differences between actuarial assumptions at
the beginning of the fiscal year and actual results, as well as the amount affected by changes in actuarial assumptions.
They are recognized in other comprehensive income at the time of their occurrence and immediately transferred from
other components of equity to retained earnings.
(iii) Translation adjustments of foreign operations

This shows translation adjustments arising from converting the financial statements in the functional currency of foreign
operations of Toyota Industries into those in the Japanese yen which is the presentation currency of Toyota Industries.
(iv) Cash flow hedges

This shows the accumulated amount of effective hedges among the gains and losses arising from changes in the fair
value of hedging instruments for cash flow hedges.
― 54 ―
19. Cash Dividends
(1) Dividends paid
FY2022 (April 1, 2021 - March 31, 2022)
Total dividends Dividends per
Resolutions Class of shares Record date Effective date
(Millions of yen) share (Yen)
Board of Directors meeting

Common stock 24,838 80 March 31, 2021 May 26, 2021
held on April 28, 2021
Board of Directors meeting September 30, November 26,

Common stock 24,838 80
held on October 29, 2021 2021 2021
FY2023 (April 1, 2022 - March 31, 2023)

Total dividends Dividends per
Resolutions Class of shares Record date Effective date
(Millions of yen) share (Yen)
Board of Directors meeting

Common stock 27,943 90 March 31, 2022 May 26, 2022
held on April 28, 2022
Board of Directors meeting September 30, November 25,

Common stock 27,943 90
held on October 28, 2022 2022 2022
(2) Dividends with a record date in the fiscal year ended March 31, 2023 for which the effective date falls in the following
fiscal year
Class of Source of Total dividends Dividends per

Resolutions Record date Effective date
shares dividends (Millions of yen) share (Yen)
Board of Directors meeting Common Retained March 31, May 25,

31,047 100
held on April 27, 2023 stock earnings 2023 2023
― 55 ―
20. Revenues
(1) Disaggregation of revenues
As specified in Note 4 "Segment Information," the reporting segments of the Toyota Industries consist of Automobile,
Materials Handling Equipment and Textile Machinery. Within the Automobile Segment, vehicles, engines, car air-
conditioning compressors and others are included due to the similarity of their trend of sales and other economic
characteristics. In addition, sales are geographically broken down according to the location of customers. The
disaggregation of sales of these sub-segments as well as sales of each reporting segment are as follows.
FY2022 (April 1, 2021 - March 31, 2022)

(Millions of yen)
Japan U.S.A. Others Total
Vehicle 83,463 －－ 83,463
Engine 215,529 408 51,700 267,639

Automobile Car Air-Conditioning
93,580 100,214 162,851 356,646
Compressor
Electronics Parts
61,551 8,800 15,161 85,513
and Others
Materials Handling Equipment 239,295 553,442 712,542 1,505,280
Textile Machinery 1,372 2,254 65,588 69,215
Others 53,306 － 413 53,720

Revenues from contracts with
748,101 665,120 1,008,258 2,421,479
customers
Revenues from other sources 5,707 140,626 137,370 283,704
Total 753,808 805,746 1,145,628 2,705,183

(Notes) 1. Revenues from contracts with customers is recognized in the Materials Handling Equipment Segment and
amounted to 404,481 million yen.
2. Revenues from other sources includes lease income based on IFRS 16 and it is recognized mainly in the
Materials Handling Equipment Segment.
3. The amount equivalent to machines sales for financial leases were reclassified from revenues from
contracts with customers to revenues from other sources due to its increased materiality.
FY2023 (April 1, 2022 - March 31, 2023)

(Millions of yen)
Japan U.S.A. Others Total
Vehicle 83,112 －－ 83,112
Engine 269,632 321 52,450 322,404

Automobile Car Air-Conditioning
92,393 142,892 194,481 429,767
Compressor
Electronics Parts
93,733 11,900 16,919 122,553
and Others
Materials Handling Equipment 275,917 782,042 856,198 1,914,158
Textile Machinery 1,562 3,216 79,531 84,309
Others 53,700 － 243 53,943

Revenues from contracts with
870,052 940,372 1,199,824 3,010,249
customers
Revenues from other sources 5,408 202,795 161,437 369,641
Total 875,460 1,143,168 1,361,262 3,379,891

(Notes) 1. Revenues from contracts with customers is recognized in the Materials Handling Equipment Segment and
amounted to 460,237 million yen.
2. Revenues from other sources includes lease income based on IFRS 16 and it is recognized mainly in the
Materials Handling Equipment Segment.
3. The amount equivalent to machines sales for financial leases were reclassified from revenues from
contracts with customers to revenues from other sources due to its increased materiality. To reflect this
change in presentation, the amount of the previous fiscal year has also been reclassified.
― 56 ―
The Automobile Segment sells automotive-related products such as vehicles, diesel and gasoline engines, foundry
parts for engines, car air-conditioning compressors, electronics components and battery. Its primary customers include
automotive-related manufacturers in and outside Japan.
The Materials Handling Equipment Segment sells and provides maintenance for lift trucks, warehouse trucks, aerial
work platforms and other products as well as provides services including the construction of automated storage and
retrieval systems, and logistics solutions. Its primary customers include users and dealers in and outside Japan.
The Textile Machinery Segment sells weaving machinery, spinning machinery, instruments for yarn testing and cotton
classing, and other products. Its primary customers include dealers in and outside Japan.
Sales derived from the sale of these products accounted for in accordance with Note 3 "material Accounting Policies."
The amount of variable consideration, such as net of discounts, incentives to distributors and other items included in
revenues, is immaterial. In addition, the amount of promised consideration is generally received within one year and
does not include a material financial component.
(2) Contract balances

Receivables from contracts with customers, contract assets and contract liabilities consist of the following.
(Millions of yen)
Receivables from contracts

Contract assets Contract liabilities
with customers
Balance of as April 1,
398,332 37,952 97,830
2021
Balance of as March 31,
462,327 51,170 140,730
2022
Balance of as March 31,
579,620 74,386 120,428
2023
Receivables from contracts with customers and Contract assets are included in "Trade receivables and other
receivables" and Contract liabilities are included in "Trade payables and other payables" in the consolidated statement
of financial position.
Revenue recognized in the years ended March 31, 2022 and 2023, which was included in the balance at beginning of
period of contract liabilities, amounted to 96,525 million yen and 140,154 million yen, respectively. During the fiscal
year ended March 31, 2022 and 2023, the profit amounts recognized from performance obligations satisfied (or
partially satisfied) in previous fiscal years were immaterial.
As the amount equivalent to machines sales for financial leases were reclassified from revenues from contracts with
customers to revenues from other sources from FY2023, lease investment assets were excluded from receivables from
contracts with customers. To be comparable, the balances at the beginning and end of the previous fiscal year have
also been reclassified.
(3) Transaction price allocated to remaining performance obligations

The total transaction price allocated to remaining performance obligations and periods when the revenue is expected to
be recognized at the end of the year ended March 31, 2022 and 2023 consist of the following. As Toyota Industries
applies the allowable practical expedient, the below amounts do not include a transaction for unsatisfied performance
obligations with an individual expected contract period of one year or less.
(Millions of yen)
FY2022 FY2023
Within one year 237,369 313,703

Over one year but within five years 294,581 290,365
Over five years 26,141 4,391
Total 558,092 608,460
― 57 ―
21. Breakdown of Expenses by Nature
Principal items of cost of sales and selling, general and administrative expenses consist of the following.
(Millions of yen)
FY2022 FY2023
Purchase of raw materials and goods 1,293,572 1,661,968

Employee benefit expenses 667,382 809,314
Depreciation and amortization 223,012 256,912
22. Research and Development Expenses

Research and development expenses included in cost of sales and selling, general and administrative expenses consist
of the following.
(Millions of yen)
FY2022 FY2023
Research and development expenses 86,192 101,775
23. Other income and Expenses

Other income consist of the following.
(Millions of yen)
FY2022 FY2023
Rental fees for fixed assets 900 890

Gain on sales of fixed assets 833 867
Others 19,209 26,472
Total 20,942 28,230
Other expenses consist of the following.

(Millions of yen)
FY2022 FY2023
Loss on disposal of fixed assets 2,196 1,346

Loss on sales of fixed assets 133 148
Depreciation and amortization 724 850
Increase of warranty provision － 9,653
Other domestic certification-related loss － 11,098
Others 11,337 14,651
Total 14,391 37,748
― 58 ―
24. Financial Income and Financial Expenses
Financial income consists of the following.
(Millions of yen)
FY2022 FY2023
Interest income
Financial assets measured at
1,607 5,159
amortized cost
Financial assets measured at
244 1,671
fair value through profit or loss
Others －－
Dividends income
Financial assets measured at fair value
82,351 88,593
through other comprehensive income
Gains on foreign currency translation 3,476 4,870
Others 2,262 3,433
Total 89,941 103,728
Financial expenses consist of the following.

(Millions of yen)
FY2022 FY2023
Interest expenses
Financial liabilities measured at
2,742 9,224
amortized cost
Financial liabilities measured at
1,393 －
fair value through profit or loss
Others 733 886
Losses on foreign currency translation －－
Others 2,414 3,865
Total 7,282 13,976
― 59 ―
25. Income Taxes
(1) Income tax expenses
Income tax expenses consist of the following.
(Millions of yen)
FY2022 FY2023
Current tax expenses 60,329 72,191

Deferred tax expenses 443 (7,940)
Total 60,773 64,250
(Note) Deferred tax expenses is due primarily to taxable temporary differences that arose and reversed for the fiscal
year ended March 31, 2022, and the fiscal year ended March 31, 2023.
The difference between the statutory effective tax rate and the actual tax rate consist of the following.
(%)
FY2022 FY2023
Statutory effective tax rate 30.9 30.9

Dividends income and others permanently
(4.6) (4.4)
not recognized as taxable income
Effect of reassessment on recoverability of
0.2 0.6
deferred tax assets
Share of profit of investments accounted for
(0.6) (0.4)
by the equity method
Others (1.2) (2.3)
Actual tax rate 24.7 24.4
(Note) Toyota Industries has mainly had to pay income, inhabitants and enterprise taxes, and the statutory effective
tax rate calculated based on these taxes was 30.9% for the fiscal years ended March 31, 2022 and 2023.
Subsidiaries outside Japan, however, pay income and other taxes depending on their locations.
― 60 ―
(2) Deferred tax assets and deferred tax liabilities
Deferred tax assets and deferred tax liabilities consist of the following.
FY2022 (April 1, 2021 - March 31, 2022)
(Millions of yen)
Recognized in
Balance at
Recognized in other Balance at
beginning of
profit or loss comprehensive end of period
period
income
Deferred tax assets
Net defined benefit liabilities 29,930 3,819 (2,012) 31,737
Allowance for compensated absences 8,499 457 － 8,957
Allowance for bonuses 7,502 830 － 8,333
Net operating loss carry-forwards for tax purposes 8,613 (4,040) － 4,573
Accrued expenses 8,832 3,414 － 12,247
Inventories 3,522 1,201 － 4,724
Others 46,365 (5,406) 32 40,991
Total deferred tax assets 113,267 277 (1,979) 111,564
Deferred tax liabilities
Financial assets at fair value through
799,566 － 208,005 1,007,571
other comprehensive income
Depreciation 66,366 2,644 － 69,011
Others 64,363 8,996 353 73,714
Total deferred tax liabilities 930,296 11,641 208,359 1,150,297
Net amount (817,029) (11,364) (210,339) (1,038,732)
FY2023 (April 1, 2022 - March 31, 2023)

(Millions of yen)
Recognized in
Balance at
Recognized in other Balance at
beginning of
profit or loss comprehensive end of period
period
income
Deferred tax assets
Net defined benefit liabilities 31,737 (136) (2,331) 29,270
Allowance for compensated absences 8,957 300 － 9,257
Allowance for bonuses 8,333 749 － 9,083
Net operating loss carry-forwards for tax purposes 4,573 538 － 5,111
Accrued expenses 12,247 7,320 － 19,568
Inventories 4,724 (188) － 4,535
Others 40,991 8,224 (888) 48,326
Total deferred tax assets 111,564 16,808 (3,219) 125,153
Deferred tax liabilities
Financial assets at fair value through
1,007,571 － (127,135) 880,435
Depreciation 69,011 10,677 － 79,689
Others 73,714 9,239 (2,957) 79,996
Total deferred tax liabilities 1,150,297 19,917 (130,093) 1,040,121
Net amount (1,038,732) (3,108) 126,873 (914,967)
― 61 ―
Deferred tax assets and deferred tax liabilities on the consolidated statement of financial position consist of the
following.
(Millions of yen)
FY2022 FY2023
Deferred tax assets 39,908 37,992

Deferred tax liabilities 1,078,641 952,960
Net amount (1,038,732) (914,967)
Loss carry-forwards, unused tax credits and future deductible temporary differences which are not recognized as
deferred tax assets consist of the following.
(Millions of yen)
FY2022 FY2023
Net operating loss carry-forwards for tax purposes 21,071 20,826

Unused tax credits 1,301 1,501
Deductible temporary differences 2,895 4,198
Total 25,268 26,527
Amount and the time limit for a loss carry-forwards which is not recognized as deferred tax assets consist of the
following.
(Millions of yen)
FY2022 FY2023
First year 793 －

Second year 277 77
Third year 167 60
Fourth year 83 27
Beyond fifth year 19,749 20,660
Total 21,071 20,826
The total amount of taxable temporary differences associated with investments in subsidiaries not recognized as
deferred tax liabilities as of the end of the fiscal year ended March 31, 2022 and 2023, was 742,620 million yen and
877,592 million yen, respectively.
Toyota Industries has not recognized deferred tax liabilities related to those temporary differences because it considers
that it can control the timing to resolve temporary differences, and they are not likely to be resolved within the
foreseeable period.
― 62 ―
26. Earnings per Share
(1) Basis of calculation for basic earnings per share
(i) Profit attributable to owners of common stock of the parent
(Millions of yen)
FY2022 FY2023
Profit attributable to owners of common stock
180,306 192,861
of the parent
(ii) Weighted-average number of common stock

(Thousands)
FY2022 FY2023
Weighted-average number of common stock 310,480 310,479
(2) Basis of calculation for diluted earnings per share

Diluted earnings per share is the same amount with basic earnings per share because there are no dilutive shares.
― 63 ―
27. Other Comprehensive Income
(Millions of yen)
FY2022 FY2023
financial assets
Amount arising during the period 673,906 (411,941)
Before tax effect adjustment 673,906 (411,941)
Tax effect (208,005) 127,135
465,900 (284,805)
financial assets
Remeasurements of defined benefit plans
Amount arising during the period 16,308 (49)
Before tax effect adjustment 16,308 (49)
Tax effect (2,365) 626
Remeasurements of defined benefit plans 13,943 576
Translation adjustments of foreign operations
Amount arising during the period 84,380 56,074
Recycling －－
Translation adjustments of foreign operations 84,380 56,074
Cash flow hedges
Amount arising during the period (4,989) 1,763
Recycling 6,083 2,056
Before tax effect adjustment 1,094 3,820
Tax effect 32 (888)
Cash flow hedges 1,126 2,931
Share of other comprehensive income of affiliates
accounted for by equity method
Amount arising during the period 1,122 158
Recycling －－
Share of other comprehensive income of
1,122 158
affiliates accounted for by equity method
Total other comprehensive income 566,473 (225,065)
28. Important Non-Cash Transactions

Important non-cash transactions (investments and financial transactions which do not use cash and cash equivalents)
are presented in Note 30 "Leases" for the increase in right-of-use assets.
― 64 ―
29. Financial Instruments
(1) Capital management
Toyota Industries' financial policy is to ensure sufficient financing and liquidity for its business activities and to maintain
strong financial position. Through the use of such current assets as cash and cash equivalents and short-term
investments, as well as cash flows from operating activities, issuance of corporate bonds and loans from financial
institutions, Toyota Industries believes that it will be able to provide sufficient funds for the working capital necessary to
expand existing businesses and develop new projects. The Company defines equity capital as the amount of share of
equity attributable to owners of the parent excluding the subscription rights to shares.
The Company is not subject to external capital controls as of March 31, 2023.
(2) Matters concerning risk management

(i) Risk management policy
Toyota Industries is exposed to financial risks related to its marketing activities (credit risk, liquidity risk, market risk,
etc.). These risks are managed, based on the treasury policy for avoiding or reducing the effects of such risks.
The Company uses derivatives to avoid the risks explained below and does not engage in speculative transactions.
i) Credit risk
The main receivables of Toyota Industries such as accounts receivable, lease investment assets and loans
receivable related to the sales financing business have credit risk (risk concerning non-performance of an agreement
by the counterparty). In accordance with internal rules including the treasury policy, Toyota Industries strives to
promptly identify and reduce concerns about collection due to a deterioration in the financial conditions and others of
its main counterparties by regularly monitoring their situation based on their financial statements, ratings and others,
and conducting due date management and balance management. Collection risk of lease investment assets is
minimal because their ownership is not transferred and due date management and balance management are
conducted. Toyota Industries has no material concentrations of credit risk with any counterparty.
When using derivative transactions, Toyota Industries mainly deals with only financial institutions evaluated as highly
creditworthy by rating agencies to mitigate the counterparty risk.
Regarding accounts receivable, lease investment assets and loans receivable related to the sales financing business,
if all or part of them cannot be collected or are deemed to be extremely difficult to collect, they are regarded as non-
performing.
The total carrying amount of financial assets represents the maximum exposure to credit risk.
(Measuring expected credit loss for accounts receivable and lease investment assets)
Because there is no material financing component in accounts receivable, the loss evaluation allowance is
calculated as lifetime expected credit losses until collection of accounts receivable. For lease investment assets,
the loss evaluation allowance is calculated as lifetime expected credit losses until collection of lease investment
assets. With regard to accounts receivable and lease investment assets of debtors who have no material problems
in their business conditions, the expected credit loss rate is measured collectively, taking into account the past
track record of bad debts and other factors. If there are material effects of changes in economic and other
conditions, the loan loss provision ratio based on the past track record of bad debts will be adjusted and reflected
in the forecast of present and future economic situations.
― 65 ―
(Measuring expected credit loss for loans receivable related to the sales financing business)
If credit risk has not increased significantly since initial recognition, the loss evaluation allowance for loans
receivable related to the sales financing business is calculated as of the end of the fiscal year by collectively
estimating the expected credit loss rate for the following 12 months based on the past track record of bad debts
and other factors. If there are material effects of changes in economic and other conditions, the loan loss provision
ratio based on the past track record of bad debts will be adjusted and reflected in the forecast of present and
future economic situations. On the other hand, if credit risk has increased significantly as of the end of the fiscal
year since the initial recognition, the loss evaluation allowance for financial instruments is calculated by individually
estimating the lifetime expected credit losses of collecting financial instruments based on the past track record of
bad debts and the collectible amount in the future among other factors. Assets that are regarded as non-
performing are recorded as credit impaired financial assets.
Expected credit loss of accounts receivable and lease investment assets for which simplified approaches are applied
consist of the following.
FY2022 (As of March 31, 2022)

(Millions of yen)
Over 30 days but
Within 30 days Over 90 days
Before due date within 90 days Total
after due date after due date
after due date
Expected credit loss

0.5% 0.9% 5.4% 38.4% －
rate
Accounts receivable
and lease investment 895,434 33,836 19,031 13,340 961,642
assets
Lifetime expected credit
4,640 320 1,024 5,122 11,108
losses
FY2023 (As of March 31, 2023)

(Millions of yen)
Over 30 days but
Within 30 days Over 90 days
Before due date within 90 days Total
after due date after due date
after due date
Expected credit loss

0.4% 0.8% 4.1% 39.7% －
rate
Accounts receivable
and lease investment 1,076,191 39,439 23,711 17,433 1,156,776
assets
Lifetime expected credit
4,100 332 981 6,917 12,331
losses
Among financial assets, the general approach is applied mainly to loans receivable related to the sales financing
business. The carrying amount of loans receivable related to the sales financing business, categorized by credit risk
for its measurement, consists of the following.
(Millions of yen)
Stage 1 Stage 2 Stage 3
12-month expected Lifetime expected Credit impaired Total
credit losses credit losses financial assets
FY2022
174,309 88 64 174,462
(As of March 31, 2022)
FY2023
256,028 909 110 257,048
(As of March 31, 2023)
― 66 ―
Changes in expected credit loss consist of the following.
FY2022 (As of March 31, 2022)

(Millions of yen)
Accounts receivable
and lease investment Loans receivable related to the sales financing business, and others
assets
Lifetime expected
12-month expected Lifetime expected Credit impaired
credit losses
Balance at beginning
8,133 934 23 54
of period
New financial assets
composed or 4,055 607 －－
purchased
Transfer to lifetime
expected credit －－－－
losses
Transfer to credit
impaired financial －－－－
assets
Transfer to 12-month
losses
Financial assets
with recognition
(2,928) (262) (191) (23)
suspended during the
period
Others 1,847 (277) 229 34
Balance at end of
11,108 1,001 61 64
period
FY2023 (As of March 31, 2023)

(Millions of yen)
Accounts receivable
and lease investment Loans receivable related to the sales financing business, and others
assets
Lifetime expected
12-month expected Lifetime expected Credit impaired
credit losses
Balance at beginning
11,108 1,001 61 64
of period
New financial assets
composed or 6,856 160 －－
purchased
Transfer to lifetime
losses
Transfer to credit
impaired financial －－－－
assets
Transfer to 12-month
losses
Financial assets
with recognition
(4,974) (709) (170) (97)
suspended during the
period
Others (658) 120 614 143
Balance at end of
12,331 572 506 110
period
― 67 ―
ii) Liquidity risk
With financing through corporate bonds and loans, Toyota Industries is exposed to liquidity risk that a payment
cannot be made on the due date because of a deterioration in financing and other conditions. In accordance with the
treasury policy, Toyota Industries prepares funding plans and secures liquidity with funds on hand and commitment
lines.
Financial liabilities by remaining contract maturities consist of the following.
FY2022 (As of March 31, 2022)

(Millions of yen)
Due after Due after Due after Due after
Due within one year but two years three years four years Due after
Total
one year within two but within but within but within five years
years three years four years five years
Non-derivative financial
liabilities
Trade payables
407,091 3 －－－－ 407,095
and other payables
Corporate bonds and
490,389 190,006 155,435 94,767 137,210 358,831 1,426,641
loans
Lease obligations 45,848 30,247 22,710 15,073 10,288 12,761 136,930
Deposits payable 36,505 －－－－－ 36,505

Derivative financial
liabilities
Derivative liabilities 6,119 1,327 1,086 5 366 － 8,905
FY2023 (As of March 31, 2023)

(Millions of yen)
Due after Due after Due after Due after
Due within one year but two years three years four years Due after
Total
one year within two but within but within but within five years
years three years four years five years
Non-derivative financial
liabilities
Trade payables
463,620 5 1 4 4 3 463,639
and other payables
Corporate bonds and
552,009 204,269 246,569 229,780 322,519 258,707 1,813,855
loans
Lease liabilities 47,111 34,321 23,913 16,646 10,618 15,293 147,903
Deposits payable 37,643 －－－－－ 37,643

Derivative financial
liabilities
Derivative liabilities 5,847 2,073 26 887 742 － 9,577
― 68 ―
iii) Market risk
(a) Foreign currency risk
Engaged in business globally, Toyota Industries conducts transactions in foreign currencies and is exposed to the
risk that profit or loss, cash flow and others will be affected by exchange rate fluctuations. In accordance with its
treasury policy, in principle, Toyota Industries uses foreign currency forward contracts, foreign currency option
contracts and foreign currency swaps to hedge foreign currency risk for each currency for its monetary credits and
liabilities denominated in foreign currencies.
Exposure to foreign currency risk consists of the following.
FY2022 FY2023
Thousands of U.S. Thousands of U.S.

Thousands of euros Thousands of euros
dollars dollars
Net exposure 70,968 95,917 40,940 197,238
(Exchange rate sensitivity analysis)

For each fiscal year, the impacts on net profit or loss and equity when there is a 1% change in the exchange rate
of the Japanese yen against the following currencies consist of the following. The analysis does not include the
effects of converting into yen financial instruments, assets and liabilities of foreign operations, revenue and
expenses which are denominated in functional currencies. Moreover, other variables are assumed to be
constant.
(Millions of yen)
FY2022 FY2023
U.S. dollar 86 48
Euro 131 234
(b) Interest rate risk

Toyota Industries procures funds through borrowings from financial institutions and issuances of corporate bonds
and is exposed to interest rate risks associated with raising and managing funds. With regard to interest rate risks,
in principle, Toyota Industries hedges such risks by interest rate swaps, interest rate options and matching cash
flows of receivables and payables, among other methods.
As a result, the Company does not conduct an interest rate sensitivity analysis because interest rate fluctuations
have little effect on the interest payment of Toyota Industries, and exposure to interest rate risk is considered
immaterial for Toyota Industries.
― 69 ―
(c) Price fluctuation risk of equity financial instruments
Toyota Industries holds listed shares of companies with business relationships and is exposed to price fluctuation
risk of equity financial instruments. Toyota Industries constantly reviews the status of its holdings of these financial
instruments, taking into account relationships with and financial conditions of business partners.
Toyota Industries does not hold equity financial instruments for trading purposes and does not actively trade these
investments.
If Toyota Industries assumes a 1% decline in the prices of listed shares held by Toyota Industries on the fiscal
years ended March 31, 2022 and 2023, decreases in other comprehensive income (before adjusting tax effect)
would have been 35,695 million yen and 31,407 million yen, respectively.
Liquidity discounts are an important unobservable input used to measure the fair value of unlisted shares and
other equity securities. A material increase (decrease) of these discounts will cause a material decrease (increase)
in fair value.
(3) Fair value of financial instruments
The following three levels of inputs are used to measure fair value.
(Level 1)
The market prices of the same assets or liabilities in active markets (which continuously ensure sufficient trading
frequencies and transaction volumes) that Toyota Industries has access to as of the measurement date are used
without adjustments.
(Level 2)
This level includes the published prices of similar assets or liabilities in active markets; the published prices of the
same assets or liabilities in inactive markets; inputs other than the observable published prices of assets and liabilities;
and inputs calculated or supported mainly by observable market data.
(Level 3)
Because data are available only from limited markets, Toyota Industries uses unobservable inputs which reflect the
judgment of Toyota Industries in the assumptions used by market participants to decide the prices of assets and
liabilities. Toyota Industries calculates inputs based on the best available information, including the data of Toyota
Industries itself.
When using multiple inputs to measure fair value, the fair value level is determined based on the material input from
the lowest level in the fair value hierarchy. Fair value is measured by the Accounting Department in accordance with
the evaluation policy and procedures of Toyota Industries, using the evaluation model that can most appropriately
reflect individual characteristics, features and risks of financial instruments. Moreover, changes are continuously
examined for important indicators which affect fluctuations of fair value.
― 70 ―
(i) Financial instruments measured at amortized cost
The carrying amount and fair values of financial instruments measured at amortized cost consist of the following.
FY2022 (As of March 31, 2022)

(Millions of yen)
Carrying Fair value
amount Level 1 Level 2 Level 3 Total
Financial assets
Loans receivable and Loans

receivables related to the 176,723 －－ 169,410 169,410
sales financing business
Lease investment assets 398,090 －－ 392,497 392,497
Financial liabilities
Corporate bonds 444,303 － 445,654 － 445,654
Long-term loans 763,941 － 762,404 － 762,404

(Note) Loans receivable, Loans receivable related to the sales financing business, corporate bonds and long-term
loans include the balance to be repaid and redeemed within one year.
FY2023 (As of March 31, 2023)

(Millions of yen)
Carrying Fair value
amount Level 1 Level 2 Level 3 Total
Financial assets
Loans receivable and Loans

receivable related to the 259,871 －－ 248,146 248,146
sales financing business
Lease investment assets 443,652 －－ 424,086 424,086
Corporate bonds 393,382 － 391,856 － 391,856
Long-term loans 1,015,019 － 1,009,566 － 1,009,566

(Note) Loans receivable, Loans receivable related to the sales financing business, corporate bonds and long-term
loans include the balance to be repaid and redeemed within one year.
Notes are omitted for short-term financial assets and short-term financial liabilities that are measured at amortized cost
because the fair value approximates the carrying amount.
The fair value of loans receivable and loans receivable related to the sales financing business is calculated with
present value obtained by discounting the total amount of principal and interest with the expected interest rate when
newly undertaking similar lending.
The fair value of lease investment assets is calculated with present value obtained by discounting the total amount of
future lease receivables with the expected interest rate when newly undertaking similar lease transactions.
The fair values of corporate bonds and long-term loans are calculated with present value obtained by discounting the
total amount of future principal and interest with the expected interest rate when newly undertaking similar borrowings.
― 71 ―
(ii) Fair values of financial assets and liabilities continuously at fair value
The fair-value hierarchy of financial instruments measured at fair value consist of the following. Financial assets
measured at fair value through other comprehensive income include debt instruments, but they were immaterial.
Moreover, there is no transfer between different levels.
FY2022 (As of March 31, 2022)

(Millions of yen)
Level 1 Level 2 Level 3 Total
Financial assets measured at fair value through
profit or loss
Derivative assets － 24,457 － 24,457
Others 2,769 － 5,677 8,447

3,570,368 846 132,437 3,703,652
Total 3,573,138 25,303 138,115 3,736,557
Financial liabilities measured at fair value through
profit or loss
Derivative liabilities － 8,905 － 8,905
Total － 8,905 － 8,905
FY2023 (As of March 31, 2023)

(Millions of yen)
Level 1 Level 2 Level 3 Total
profit or loss
Derivative assets － 31,432 － 31,432
Others 2,827 － 6,202 9,029

3,141,363 835 149,346 3,291,545
Total 3,144,191 32,268 155,549 3,332,008
Financial liabilities measured at fair value through
profit or loss
Derivative liabilities － 9,577 － 9,577
Total － 9,577 － 9,577
― 72 ―
Derivatives are transactions for forward exchange contracts, foreign currency option contracts, interest rate swaps,
interest rate and currency swaps, and interest rate options.
Fair value of forward exchange contracts is calculated based on observable market data including forward exchange
rates. Data for the fair value of foreign currency option contracts, interest rate swaps, interest rate and currency swaps
and interest rate options are calculated by financial institutions based on observable market data.
Toyota Industries uses the modified book value method when measuring the fair value of unlisted shares and other
equity securities categorized as financial assets measured at fair value through other comprehensive income. The
illiquidity discount, which is an important unobservable input used to measure the fair value of unlisted shares, is
calculated as 30%.
Changes in financial instruments classified as Level 3 consist of the following.

(Millions of yen)
FY2022 FY2023
Balance at beginning of period 112,195 138,115

Gains and losses included in other
24,729 15,944
comprehensive income
Purchase 1,347 1,578
Sales (151) (71)
Others (5) (18)
Balance at end of period 138,115 155,549
(Note) Gains and losses included in other comprehensive income are those for financial assets measured at fair
value through other comprehensive income as of the closing date. These gains and losses are included in
"Net changes in revaluation of FVTOCI financial assets" on the consolidated statement of comprehensive
income.
― 73 ―
(4) Offsetting of financial assets and financial liabilities
Among derivative transactions of Toyota Industries, there are master netting agreements of similar agreements. Under
these agreements, if non-performance occurs between contracting parties of an agreement, receivables and payables of
business partners will be settled in net amounts.
The following information pertains to the netting of financial assets and financial liabilities recognized against the same
business partners.
FY2022 (As of March 31, 2022)

(Millions of yen)
Amount that
Financial assets
could be offset in
on the
the future based
Total financial consolidated
Total offset on master netting Net amount
assets statement of
agreements and
financial position,
others (Including
net
collateral)
Financial assets
Trade receivables
179,241 114,315 64,926 － 64,926
and other receivables
Derivative assets 10,877 － 10,877 3,235 7,641
Total 190,118 114,315 75,803 3,235 72,568
(Millions of yen)
Amount that
Financial
could be offset in
liabilities on the
the future based
liabilities statement of
agreements and
financial position,
others (Including
net
collateral)
Trade payables
182,147 114,315 67,831 － 67,831
and other payables
Derivative liabilities 4,133 － 4,133 3,235 897
Total 186,280 114,315 71,965 3,235 68,729
― 74 ―
FY2023 (As of March 31, 2023)
(Millions of yen)
Amount that
Financial assets
could be offset in
on the
the future based
assets statement of
agreements and
financial position,
others (Including
net
collateral)
Financial assets
Trade receivables
216,530 148,907 67,622 － 67,622
and other receivables
Derivative assets 13,168 － 13,168 2,089 11,078
Total 229,698 148,907 80,790 2,089 78,701
(Millions of yen)
Amount that
Financial
could be offset in
liabilities on the
the future based
liabilities statement of
agreements and
financial position,
others (Including
net
collateral)
Trade payables
263,825 148,907 114,917 － 114,917
and other payables
Derivative liabilities 2,387 － 2,387 2,089 297
Total 266,212 148,907 117,305 2,089 115,215
― 75 ―
(5) Derivative transactions and hedging activities
Toyota Industries has concluded derivative agreements with financial institutions to hedge changes in cash flows or fair
value of financial assets and financial liabilities. Forward exchange contracts and currency options are used to hedge
foreign currency risks concerning trade receivables, trade payables and others denominated in foreign currencies.
Moreover, currency swaps, interest rate swaps, interest rate and currency swaps, and interest options are used to hedge
foreign currency risk and interest rate risk of borrowings, corporate bonds and lease investment assets. Toyota Industries
applies hedge accounting for items that meet hedge accounting requirements.
In the execution and management of hedge transactions, interest rate risk and foreign currency risk are hedged in
accordance with treasury policy. Moreover, the status of hedge transactions is regularly reported to the director in charge
of accounting and other responsible people.
Regarding foreign currency risk in operating activities, a certain amount of targeted risks is hedged, with the total amount
of targeted risks set as the upper limit. However, among targeted risks, usance transactions are in principle fully covered.
Regarding the foreign currency risk of investing activities which require a resolution of the Board of Directors, the full
amount is hedged in principle. For the foreign currency risk of other investing activities and financing activities, the full
amount is hedged as necessary.
The effectiveness of hedging is evaluated by comparing the market fluctuations or the accumulated changes in cash
flows of hedged items and hedging instruments during the period from the start of hedging to the evaluation of the
effectiveness respectively. A high correlation has been observed between the two. Moreover, regarding hedges with
prospective ineffective portions, the ineffective amount is calculated using quantitative methods. Because the important
conditions for hedging instruments and hedged items are consistent or closely consistent, the amount of ineffective
portions is immaterial, and it has been omitted.
Toyota Industries sets an appropriate hedging ratio based on the volumes of hedged items and hedging instruments at
the start of hedge transactions, establishing a one-on-one relationship in principle. If the hedging relationship comes to be
deemed not effective but there is no change in the purpose of risk management, the hedging ratio established at the start
of the hedging relationship is readjusted to make the relationship effective again. Moreover, if the purpose of risk
management is changed for the hedging relationship, application of hedge accounting is suspended.
― 76 ―
Toyota Industries may be affected by interest rate benchmark reform in its hedging transactions. USD LIBOR is mainly
expected to be replaced by SOFR (Secured Overnight Financing Rate) as of the fiscal year ended March 31, 2023. There
are differences between USD LIBOR and SOFR. USD LIBOR is a term interest rate and pre-determined, because it is
issued at the beginning of the borrowing period with fixed term (3 months, 6 months, etc.). On the other hand, SOFR is a
post-determined interest rate based on the overnight rate from the actual transaction and is determined at the end of the
overnight borrowing period. Moreover, LIBOR incorporates risk-free rates and credit spreads, while SOFR does not.
When making a reference rate transition from USD LIBOR to SOFR in existing contracts and arrangements, it may
become necessary to adjust differences in terms and credit so that the two benchmark interest rates align economically
at the transition. The replacement rate has not been fixed for certain transactions.
Among derivatives designated as hedge transactions as of the fiscal year ended March 31, 2023, those that will be
affected by interest rate benchmark reform are interest rate swap transactions (notional principal of 216,318 million yen),
interest rate and currency swap transactions that use USD LIBOR as a reference rate (notional principal of 36,186 million
yen). These hedge transactions are held mainly to hedge exposure to variability in cash flows arising from floating rate
borrowings. However, application of Interest Rate Benchmark Reform Amendments to IFRS 9, IAS 39 and IFRS 7 (issued
in September 2019) permit the continuation of hedge accounting during the period of uncertainty arising from the interest
rate benchmark reform prior to the replacement of the existing interest rate benchmarks with alternative interest rate
benchmarks. Therefore, Toyota Industries will not be affected.
Toyota Industries will continue to apply the relief measures provided for in the amendments until the period of uncertainty
arising from the interest rate benchmark reform is over. Toyota Industries assumes that this uncertainty will not end until
the contracts are amended with regard to the date of replacement with alternative benchmark rates, alternative
benchmark rates based on cash flows and related spread adjustments for the alternative benchmark rates.
Financial instruments referencing USD LIBOR at the end of the current fiscal year are as follows.
(Millions of yen)
Carrying amounts
Amounts not transferred to
Total amount
alternative interest rates
Non-derivative financial liabilities
Corporate bonds 393,382 77,847
Loans 1,125,151 195,824
(Millions of yen)
Notional principal
Amounts not transferred to
Total amount
alternative interest rates
Derivative financial instruments
Interest rate swap 415,647 216,318
Interest rate and currency swap 67,520 36,186
Toyota Industries' Accounting Department is taking the lead in monitoring interest rate benchmark developments as
necessary and appropriately shifting to the alternative interest rate benchmarks in consultation with the respective
financial institutions.
― 77 ―
(i) Notional principals and average prices of hedging instruments
Notional principals and average prices of hedging instruments for which hedge accounting applied consist of the
following.
FY2022 (As of March 31, 2022)
Notional principal Average

price
Risk Hedge Instruments Unit Over one or
Within year but Over five Average
Total
one year within five years rate
years
Foreign currency forward contract Millions
transactions of
BUY JPY / SELL USD USD 97 －－ 97 JPY 115.17
BUY EUR / SELL USD EUR 45 0 － 45 USD 1.17
BUY SEK / SELL USD USD 1 －－ 1 SEK 9.28
BUY USD / SELL EUR EUR 20 －－ 20 USD 1.10
BUY SEK / SELL EUR EUR 31 －－ 31 SEK 10.44
BUY SEK / SELL GBP GBP 51 －－ 51 SEK 12.19
BUY SEK / SELL AUD AUD 23 －－ 23 SEK 6.60

Foreign
currency BUY USD / SELL SEK USD 18 －－ 18 SEK 9.04
risk
BUY EUR / SELL SEK EUR 8 －－ 8 SEK 10.36
Currency option transactions

Cash flow
hedges BUY JPY / SELL EUR EUR 50 －－ 50 JPY 130.86
BUY JPY / SELL AUD AUD 18 －－ 18 JPY 84.00
Currency swap transactions
Pay JPY / Receive USD USD 500 － 250 750 JPY 107.22
Pay USD / Receive JPY JPY － 8,169 － 8,169 JPY 110.70
Interest rate swap transactions
Pay Fix / Receive Float USD 70 1,028 － 1,098 －

Interest rate and currency swap
transactions
Interest
rate risk Pay USD Fix / Receive JPY Float JPY － 21,720 － 21,720 JPY 108.60
Pay JPY Fix / Receive USD Float USD － 72 － 72 JPY 110.41
Interest options
Interest cap HKD － 300 － 300 % 3.00
Fair value Interest EUR 39 696 － 735 －

hedges rate risk Pay Fix / Receive Float AUD 34 98 － 132 －
GBP 7 73 － 80 －
― 78 ―
FY2023 (As of March 31, 2023)
Notional principal Average

price
Risk Hedge Instruments Unit Over one or
Within year but Over five Average
Total
one year within five years rate
years
Foreign currency forward contract Millions
transactions of
BUY EUR / SELL USD EUR 59 6 － 65 USD 1.08
BUY SEK / SELL USD USD 6 －－ 6 SEK 10.32
BUY USD / SELL EUR EUR 38 24 － 63 USD 1.08
BUY SEK / SELL EUR EUR 56 －－ 56 SEK 11.11
BUY SEK / SELL GBP GBP 64 －－ 64 SEK 12.48
BUY SEK / SELL AUD AUD 25 －－ 25 SEK 7.09

Foreign BUY USD / SELL SEK USD 31 －－ 31 SEK 10.42
currency
risk BUY EUR / SELL SEK EUR 22 －－ 22 SEK 11.15
Currency option transactions

Cash flow BUY JPY / SELL EUR EUR 58 －－ 58 JPY 141.33
hedges
BUY JPY / SELL AUD AUD 16 －－ 16 JPY 89.83
Currency swap transactions
Pay JPY / Receive USD USD － 400 － 400 JPY 114.98
Pay USD / Receive JPY JPY － 8,169 － 8,169 JPY 110.70
Pay EUR / Receive USD USD － 100 － 100 USD 1.00
Pay Fix / Receive Float USD 175 1,583 － 1,758 －

Interest rate and currency swap
transactions
Interest
rate risk Pay USD Fix / Receive JPY Float JPY 10,860 10,860 － 21,720 JPY 108.60
Pay JPY Fix / Receive USD Float USD － 72 － 72 JPY 110.42
Interest options
Interest cap HKD 100 200 － 300 % 3.00
Fair value Interest EUR 32 620 － 652 －

hedges rate risk Pay Fix / Receive Float AUD 30 38 － 69 －
GBP 9 34 － 43 －
― 79 ―
(ii) Effects of hedge accounting on the consolidated statement of financial position
The carrying amounts of hedging instruments for which hedge accounting applied consist of the following.
FY2022 (As of March 31, 2022)

(Millions of yen)
Carrying amount of hedging Line items on the
Risk Hedge instruments instruments consolidated statement
Assets Liabilities of financial position
Foreign currency forward Other financial assets
1,103 3,502
contract transactions and liabilities
Foreign Currency option Other financial assets
0 387
currency risk transactions and liabilities
Currency swap Other financial assets
10,301 387
transactions and liabilities
Cash flow hedges
Interest rate swap
6,513 － Other financial assets
transactions
Interest rate Interest rate and currency Other financial assets
995 2,438
risk swap transactions and liabilities
Interest option
103 － Other financial assets
transactions
Interest rate Interest rate swap Other financial assets
Fair value hedges 2,157 70
risk transactions and liabilities
Other financial assets
Total 21,176 6,786
and liabilities
FY2023 (As of March 31, 2023)

(Millions of yen)
Carrying amount of hedging Line items on the
Risk Hedge instruments instruments consolidated statement
Assets Liabilities of financial position
Foreign currency forward Other financial assets
1,321 1,284
contract transactions and liabilities
Foreign Currency option Other financial assets
40 132
currency risk transactions and liabilities
Currency swap Other financial assets
3,402 1,708
Cash flow hedges
Interest rate swap Other financial assets
12,579 348
Interest rate Interest rate and currency Other financial assets
1,850 4,544
risk swap transactions and liabilities
Interest option
145 － Other financial assets
transactions
Interest rate Interest rate swap
Fair value hedges 4,958 － Other financial assets
risk transactions
Other financial assets
Total 24,299 8,019
and liabilities
― 80 ―
The carrying amounts of surplus in cash flow hedges consist of the following.
(Millions of yen)
FY2022 FY2023
Surplus in cash flow hedges 3,338 6,269
The carrying amounts and accumulated amounts of fair value hedge adjustments on the hedged items classified as
fair value hedges consist of the following.
FY2022 (As of March 31, 2022)

(Millions of yen)
Carrying amount of hedged Accumulated amount of fair Line items on the
items value hedge adjustments Consolidated Statement of
Assets Liabilities Assets Liabilities Financial Position
Trade receivables and
Interest rate risk 122,300 － (1,790) －
other receivables
FY2023 (As of March 31, 2023)

(Millions of yen)
Carrying amount of hedged Accumulated amount of fair Line items on the
items value hedge adjustments Consolidated Statement of
Assets Liabilities Assets Liabilities Financial Position
Trade receivables and
Interest rate risk 130,138 － (3,835) －
other receivables
(iii) Effects of hedge accounting on the consolidated statement of profit or loss and other comprehensive income (loss)
Profit (loss) from cash flow hedges consist of the following.
FY2022 (April 1, 2021 - March 31, 2022)

(Millions of yen)
Changes in the value of
Amount transferred from
hedging instruments Line items affected by
surplus in cash flow
recognized in other transfers in profit or loss
hedges to profit or loss
Net sales,
Foreign currency risk (7,657) 3,575 Financial income,
Financial expenses
Financial income,
Interest rate risk 4,524 684
Financial expenses
FY2023 (April 1, 2022 - March 31, 2023)

(Millions of yen)
Changes in the value of
Amount transferred from
hedging instruments Line items affected by
surplus in cash flow
recognized in other transfers in profit or loss
hedges to profit or loss
Net sales,
Foreign currency risk (2,782) 2,424 Financial income,
Financial expenses
Cost of sales,
Interest rate risk 4,399 (1,109) Financial income,
Financial expenses
― 81 ―
30. Leases
(1) As lessor
Toyota Industries leases machinery and vehicles.
Toyota Industries strives to reduce risks related to underlying assets through periodic monitoring of the usage status as
well as the accumulation of sales information in the used machinery and vehicle market.
(i) Finance Leases

Maturity analysis of lease payments receivable based on finance leases consists of the following.
(Millions of yen)
FY2022 FY2023

Over one year but within two years 97,845 115,060
Over two years but within three years 69,205 78,734
Over three years but within four years 41,806 48,994
Over four years but within five years 20,709 22,345
Total 371,581 423,117
Elimination : Unearned finance income (24,512) (33,861)
Unguaranteed residual value (discounted) 51,021 54,396
Net investment in the lease 398,090 443,652
Financial income on net investment in the lease for the fiscal year ended March 31, 2022 and 2023 amounted to
15,840 million yen and 19,006 million yen respectively, and are included in "Net Sales" on the consolidated statement
of profit or loss.
(ii) Operating leases

Maturity analysis of lease payments based on the non-cancellable operating lease contracts consists of the following.
(Millions of yen)
FY2022 FY2023

Over one year but within two years 46,613 53,168
Over two years but within three years 35,491 38,614
Over three years but within four years 24,954 26,118
Over four years but within five years 14,661 16,292
Total 200,415 222,168
Lease income from operating leases consists of the following.

(Millions of yen)
FY2022 FY2023
Lease income relating to variable lease
payments that do not depend on an index or 7,707 10,240
a rate
Others 126,572 155,057
Total 134,280 165,297
― 82 ―
(2) As lessee
Toyota Industries leases buildings and structures, machinery and vehicles, and others.
For some lease agreements, there is a renewal option or a purchase option. Moreover, there are no restrictions imposed
by lease agreements (e.g., restrictions on additional borrowings and additional leasing).
The carrying amount of right-of-use asset included in "Property, Plant and Equipment" or "Goodwill and Intangible
Assets" consists of the following.
(Millions of yen)
Property, Plant and Equipment Goodwill and

Intangible
Leases as Assets
Other than leases as lessor Total
lessor
Tools, Other
Buildings and Machinery Machinery
furniture and Land intangible
structures and vehicles and vehicles
fixtures assets
FY2022
(As of March 31, 38,310 25,289 624 5,149 48,081 139 117,595
2022)
FY2023
(As of March 31, 44,047 25,144 552 5,247 56,355 113 131,461
2023)
Depreciation of right-of-use assets consists of the following.

(Millions of yen)
Property, Plant and Equipment Goodwill and

Intangible
Leases as Assets
Other than leases as lessor Total
lessor
Tools, Other
Buildings and Machinery Machinery
furniture and Land intangible
structures and vehicles and vehicles
fixtures assets
FY2022
(April 1, 2021 - 10,340 11,479 246 323 9,802 18 32,210
March 31, 2022)
FY2023
(April 1, 2022 - 13,045 13,806 235 296 10,368 34 37,786
March 31, 2023)
Increase of right-of-use assets for the fiscal year ended March 31, 2022 and 2023 is 42,073 million yen and 47,785
million yen respectively.
Profit or loss and total cash outflow for leases as lessee consist of the following.
(Millions of yen)
FY2022 FY2023
Interest expenses for lease liabilities 1,558 2,228

Expenses for short-term leases 3,830 4,826
Income from sub-leasing right-of-use assets 64,772 74,258
Total cash outflow for leases 45,276 53,585
― 83 ―
31. Changes in Liabilities arising from Financing Activities
Changes in the balances of liabilities arising from financing activities are as follows.
(Millions of yen)
Short-term Commercial Long-term Corporate Lease
loans paper loans bonds liabilities
Balance as of April 1, 2021 56,830 18,809 683,031 586,691 123,653
Changes from financing cash flows 50,338 40,590 53,068 (170,860) (16,453)
Non-cash changes
Increase through commencement of lease －－－－ 13,626
Foreign currency translation

9,897 5,802 27,841 28,472 11,909
difference and others
Balance as of March 31, 2022 117,066 65,203 763,941 444,303 132,735
Changes from financing cash flows (16,851) 112,121 224,094 (61,721) (40,910)
Non-cash changes
Increase through commencement of lease －－－－ 47,706
Foreign currency translation

9,916 3,280 26,983 10,801 1,401
difference and others
Balance as of March 31, 2023 110,132 180,605 1,015,019 393,382 140,933
(Note) The above amounts include the balance to be repaid and redeemed within one year.
― 84 ―
32. Related Party Transactions
The transactions between Toyota Industries and related parties and the outstanding receivables and payables consist
of the following.
(1) Transactions with related parties and outstanding receivables and payables
Toyota Industries has transactions with the following related parties.
For the conditions of transactions and determination policies with related parties, the Company offers prices based on
consideration of overall costs and market price of the products, and negotiates prices for each fiscal year.
(Millions of yen)
FY2022 FY2023
Toyota Motor Corporation and its subsidiaries
Sales of goods and provision of services 379,530 462,128

Purchase of parts and receipt of services 26,707 34,625
(Note) Toyota Motor Corporation has a significant influence on Toyota Industries.
The unsettled balance on the above transactions and its allowance for credit losses consist of the following.
(Millions of yen)
FY2022 FY2023
Toyota Motor Corporation and its subsidiaries
Trade receivables and other receivables 68,496 89,091

Allowance for doubtful accounts －－
Trade payables and other payables 68,523 88,043
(Note) Toyota Motor Corporation has a significant influence on Toyota Industries.
(2) Principal management personnel compensation

FY2022 (April 1, 2021 - March 31, 2022)
(Millions of yen)
Total compensation by type
Total amount of Bonuses
compensation Fixed Remuneration
(Performance-linked
(Basic Remuneration)
Remuneration)
Principal management personnel 616 403 213
FY2023 (April 1, 2022 - March 31, 2023)

(Millions of yen)
Total compensation by type
Total amount of Bonuses
compensation Fixed Remuneration
(Performance-linked
(Basic Remuneration)
Remuneration)
Principal management personnel 400 334 65
― 85 ―
33. Contingencies
FY2022 (April 1, 2021 - March 31, 2022)
As announced on May 21, 2021, due to the delay in obtaining the U.S. engine emissions certification for the engines
installed in some models of lift trucks sold in North America, the Company's subsidiary Toyota Material Handling, Inc. in
Indiana, United States had suspended production and shipments of such models. On May 17, 2022, the Company have
announced that it had obtained engine certification for its main models of small liquefied petroleum gas (LPG) lift trucks
and resumed shipments on May 12, 2022.
We are working to obtain certification and resume production for the remaining models, and it is difficult to reasonably
estimate the impact of this matter on Toyota Industries' consolidated financial statements.
FY2023 (April 1, 2022 - March 31, 2023)

As announced on May 21, 2021, due to the delay in obtaining the U.S. engine emissions certification for the engines
installed in some models of lift trucks sold in North America, the Company's subsidiary, Toyota Material Handling, Inc. in
Indiana, United States had suspended production and shipments of impacted models. On May 17, 2022, the Company
has announced that it had obtained engine certification for its main models of small liquefied petroleum gas (LPG) lift
trucks and resumed shipments on May 12, 2022.
Subsequently, the Company confirmed the excess over the domestic (Japanese) emissions regulation values due to
aging degradation, and potential violation of regulations related to Japanese certification of emissions, of engines for lift
trucks for the Japanese market. As a result, on March 17, 2023, Toyota Industries suspended the shipment of three
models (two diesel engine models and one gasoline engine model) of lift trucks in Japan. Concurrently, the Company
reported this matter to the Japanese Ministry of Land, Infrastructure, Transport and Tourism (MLIT), the Japanese
Ministry of the Environment, and the Japanese Ministry of Economy, Trade and Industry. Of these models for which
shipments have been suspended, the two diesel engine models and any lift trucks with these engines installed are
subject to an administrative action imposed by the MLIT on April 26, 2023, and the designation and certification of the
said types of engines were revoked.
The issue of the certification of engines for markets in North America and Japan is currently subject to ongoing
investigation as well as discussion with relevant authorities. Currently, it is not possible to make a reasonable estimate
of the impact of the matter on the Company's consolidated financial statements, except for the amount of impact already
identified.
34. Commitments
Regarding the acquisition of property, plant and equipment, important capital expenditures (commitments) which are
contracted but not yet recognized on the consolidated financial statements are 63,358 million yen and 52,386 million
yen as of the end of the fiscal year ended March 31, 2022 and the end of the fiscal year ended March 31, 2023,
respectively.
― 86 ―
35. Major Consolidated Subsidiaries
The Company's major subsidiaries are listed below. There are no subsidiaries of individual significance for which the
Company has non-controlling interests during the fiscal years ended March 31, 2022 and 2023.
Percentage of Voting
Company Name Location Principal Business Rights of The Company
(%)
Oguchi-cho,
Tokyu Co., Ltd. Automobile 100.00
Niwa-gun, Aichi
Tokaiseiki Co., Ltd. Iwata-shi, Shizuoka Automobile 100.00
IZUMI MACHINE MFG. CO., LTD. Obu-shi, Aichi Automobile 100.00
Materials Handling
TOYOTA L&F Tokyo Co., Ltd. Shinagawa-ku, Tokyo 100.00
Equipment
Taikoh Transportation Co., Ltd. Kariya-shi, Aichi Others 54.04
Materials Handling
Aichi Corporation Ageo-shi, Saitama 53.92
Equipment
Toyota Material Handling Manufacturing Materials Handling
Ancenis, France 100.00
France S.A.S Equipment
Michigan Automotive Compressor Inc. Michigan, U.S.A. Automobile 60.00
Materials Handling
Toyota Industries Europe AB Mjölby, Sweden 100.00
Equipment
Materials Handling
Toyota Material Handling Europe AB Mjölby, Sweden 100.00
Equipment
Toyota Industries North America, Inc. Indiana, U.S.A. Others 100.00
Materials Handling
Toyota Material Handling, Inc. Indiana, U.S.A. 100.00
Equipment
TD Deutsche Klimakompressor GmbH Sachsen, Germany Automobile 65.00
Toyota Material Handling Australia Pty New South Wales, Materials Handling
100.00
Limited Australia Equipment
TD Automotive Compressor Georgia, LLC Georgia, U.S.A. Automobile 77.40
Uster Technologies AG Zurich, Switzerland Textile Machinery 100.00

Materials Handling
Industrial Components and Attachments, Inc. Oregon, U.S.A. 100.00
Equipment
Materials Handling
Cascade Corporation Oregon, U.S.A. 100.00
Equipment
Toyota Industry (Kunshan) Co., Ltd. Jiangsu, China Automobile 63.40
Materials Handling
Toyota Industries Commercial Finance, Inc. Texas, U.S.A. 100.00
Equipment
Yantai Shougang TD Automotive
Shandong, China Automobile 50.10
Compressor Co., Ltd.
TD Automotive Compressor Kunshan Co.,
Jiangsu, China Automobile 78.80
Ltd.
P.T. TD Automotive Compressor Indonesia West Java, Indonesia Automobile 50.10
Materials Handling
Bastian Solutions LLC Indiana, U.S.A. 100.00
Equipment
North Brabant, Materials Handling
Vanderlande Industries Holding B.V. 100.00
Netherlands Equipment
Toyota Industries Engine India Pvt Ltd. Karnataka, India Automobile 98.80
36. Subsequent Events

There are no material subsequent events to be reported as of August 10, 2023.
― 87 ―
II. [Other]
Quarterly information in the fiscal year ended March 31, 2023
(Cumulative period) First quarter Second quarter Third quarter Full year
Net sales (Millions of yen) 759,631 1,602,496 2,467,565 3,379,891
Profit before income taxes

91,711 144,958 230,083 262,967
(Millions of yen)
Profit attributable to owners of the
71,623 106,888 169,228 192,861
parent (Millions of yen)
Earnings per share (Yen) 230.69 344.27 545.06 621.17
(Accounting period) First quarter Second quarter Third quarter Fourth quarter
Quarterly earnings per share (Yen) 230.69 113.58 200.79 76.12
― 88 ―
Independent Auditor's Report
To the Board of Directors of Toyota Industries Corporation
Opinion
We have audited the consolidated financial statements of Toyota Industries Corporation and its subsidiaries (the Group),
which comprise the consolidated statement of financial position as at March 31, 2023, and the consolidated statement of
income, consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated
statement of cash flows for the year then ended, and notes to the consolidated financial statements.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated
financial position of the Group as at March 31, 2023, and its consolidated financial performance and its consolidated cash
flows for the year then ended in accordance with International Financial Reporting Standards.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities under
those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial
Statements section of our report. We are independent of the Group in accordance with the ethical requirements that are
relevant to our audit of the consolidated financial statements in Japan, and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
consolidated financial statements of the current period. These matters were addressed in the context of our audit of the
consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
1. Valuation of goodwill and intangible assets with indefinite useful lives
Key audit matter description How our audit addressed the key audit matter
The Group develops energy-efficient electric lift trucks, We performed the following procedures over the impairment
next-generation models of lift trucks, automation assessment for the goodwill and intangible assets with
technology for materials handling equipment and indefinite useful lives:
materials handling systems to provide logistics · Assessed the appropriateness of cash-generating units
solutions in its Materials Handling Equipment Business. identified by management, considering the lowest level used
In order to further strengthen the business, the Group by the Group for internal management purposes.
acquired Vanderlande Group (Vanderlande), a global · Performed the following procedures over the five-year
logistics solutions provider, and Bastian Group business plans approved by management for the Materials
(Bastian), a leading logistics system integrator in North Handling Equipment CGU and the Vanderlande CGU:
America, during the year ended March 31, 2018, and - Compared the business plans used in the prior-year
viastore Group (viastore), a German logistics solutions impairment assessment with the actual results.
provider, during the year ended March 31, 2023. As a - Obtained an understanding of the production and sales
result, the Group recorded goodwill of 72,283 million strategies according to local market conditions based on
yen and intangible assets with indefinite useful lives of customer location as well as the capital expenditure plans
26,375 million yen arising from the acquisition of and assessed whether the business plans were consistent
Vanderlande, goodwill of 17,185 million yen arising with the understanding and the historical trends in net sales
from the acquisition of Bastian and goodwill of 24,349 and profit.
million yen arising from the acquisition of viastore as of · Performed the following procedures over the growth rate
March 31, 2023 (Note 10 “Goodwill and Intangible used to extrapolate cash flows beyond the five-year period:
Assets”). Goodwill as a result of the Vanderlande, - Assessed whether the growth rate was consistent with the
Bastian and viastore acquisitions is allocated to historical growth rate.
Materials Handling Equipment Business, a cash- - Assessed whether the growth rate was reasonable
generating unit, and the intangible assets with compared with data of the expected long-term growth rate of
indefinite useful lives of Vanderlande are allocated to the market which was provided by a third party independent
Vanderlande, a cash-generating unit. Net sales for from the Group.
Materials Handling Equipment segment is 2,284,922 · Performed the following procedures over the discount
million yen and segment profit is 121,856 million yen rate:
for the year ended March 31, 2023 (Note 4 “Segment - Assessed whether the discount rate was reasonable and
Information”). recalculated the underlying analysis supporting the discount
rate.
The Group performs an annual impairment test for - Assessed whether the market data used to determine the
goodwill and intangible assets with indefinite useful discount rate was consistent with the data provided by a
lives, and more frequently if there are indicators of pricing vendor independent from the Group.
impairment. In the impairment test, the recoverable - Involved valuation specialists to perform independent
amount of a cash-generating unit is determined based recalculations of the discount rate and compared the
on value in use. The Group calculates the value in use calculation with the discount rate determined by the
as the present value of the future cash flows expected management.
to be derived from the Materials Handling Equipment
CGU and the Vanderlande CGU principally based on
the five-year business plan approved by management.
An assumed increasing growth rate is used to
extrapolate cash flows beyond the five-year period.
The business plan is prepared based on production
and sales strategies including the launch of new
products according to local market conditions based on
customer location as well as capital expenditure plans.
The increasing growth rate used for cash flows beyond
the five-year period is determined with reference to the
expected long-term growth rate of markets to which the
Materials Handling Equipment CGU and the
Vanderlande CGU belong. The discount rate is
determined based on the weighted average cost of
capital (pre-tax) of the Materials Handling Equipment
CGU and the Vanderlande CGU. The Group concludes
that it is highly unlikely that these assets will be
significantly impaired even if these assumptions
change within a reasonable and predictable range
(Note 10 “Goodwill and Intangible Assets”).
The goodwill and intangible assets with indefinite
useful lives are material to the consolidated financial
statements. In addition, the calculation of value in use
in impairment testing uses assumptions such as
estimates of future cash flows based on the five-year
business plan, growth rates, and discount rates, all of
which involve management's subjective judgment.
Therefore, we considered the audit of the impairment
assessment for goodwill and intangible assets with
indefinite useful lives for these CGUs to be a key audit
matter.
2. Valuation of warranty provision related to recalls and other market measures and provision
related to other domestic certification due to the suspension of shipment
Key audit matter description How our audit addressed the key audit matter
The Group recorded provisions of 41,827 million yen We performed the following procedures over the
under current assets in the consolidated statement of assessment of the warranty provision related to recalls
financial position as of March 31, 2023. This includes and other market measures and the provision related to
provisions resulting from violation of regulations related to other domestic certification due to the suspension of
certification of lift trucks engines for the domestic market shipment:
announced on March 17, 2023, comprising warranty · Agreed the units covered by the warranty provision to
provision of 9,653 million yen related to recalls and other the minutes of quality-related meetings and the
market measures and provision of 11,079 million yen information on recall notifications published by the Ministry
related to other domestic certification due to the of Land, Infrastructure, Transport and Tourism.
suspension of shipment (Notes 16 “Provisions” and · Performed the following procedures over the cost of
Note 23 “Other Income and Expenses”). remediation per unit:
The Group recognizes the warranty provision related to - Reviewed the minutes of quality-related meetings,
recalls and other market measures based on the including the details of the measures taken, and made
individual estimates of the amount of warranty expenses inquiries to the quality assurance department to examine
using the remediation cost per unit, the estimated number whether management made a reasonable estimate of the
of units to be remediated and other factors. The estimated cost of remediation per unit based on the agreement with
number of units to be remediated is determined based on dealers.
the actual units recalled in the past. · Performed the following procedures over the estimated
The Group recognizes the provision related to other number of units to be remediated:
domestic certification due to the suspension of shipment - Agreed the number of units subject to be recalled to the
based on the estimated amount of costs arising from the information on recall notifications published by the Ministry
suspension of shipment, such as the cost of loaner lift of Land, Infrastructure, Transport and Tourism.
trucks and compensation to suppliers for delays in - Reviewed the minutes of quality-related meetings,
delivery of lift trucks. These costs are estimated based on including the expected number of units to be remediated,
the cost per month and the estimated period of and made inquiries of the quality assurance department to
suspension of shipment for each model (Note 16 examine whether the management made a reasonable
“Provisions”). estimate of the number of units to be remediated based on
The total of warranty provision related to recalls and other the actual units recalled in the past.
market measures and provision related to other domestic · We performed the following procedures over the
certification due to the suspension of shipment is material provision related to other domestic certification due to the
to the consolidated financial statements. In addition, the suspension of shipment:
violation of regulations related to certification of lift trucks - Examined notifications to dealers about compensation to
engines for the domestic market announced on March 17, customers to determine whether it would create a valid
2023 is considered as a significant event or transaction expectation that obligations to compensate customers
occurred during the current year that has a material would be fulfilled, to assess the appropriateness of the
impact on the consolidated financial statements or the management's judgment on the criteria for recognizing the
audit. Moreover, estimating provisions involves provision.
management's subjective judgment. Therefore, we - Examined approvals for compensation to customers and
considered the audit of the assessment of warranty made inquiries to the sales department to examine
provision related to recalls and other market measures whether the management made a reasonable estimate of
and the provision related to other domestic certification the cost of loaner lift trucks to be incurred as a result of
due to the suspension of shipment to be a key audit the delayed delivery of the lift trucks.
matter. - Examined the notifications sent to suppliers about
compensation to determine whether it would create a valid
expectation that obligations to compensate suppliers
would be fulfilled, to assess the appropriateness of the
management's judgment on the criteria for recognizing the
provision.
- Examined approvals for compensation to suppliers and
made inquiries of the procurement department to examine
whether management made a reasonable estimate of the
amount required for compensation.
- Examined the consistency between the actual amount
and the estimated amount of compensation to suppliers.
Other Information
The other information comprises the information included in the Annual Financial Report, but does not include the
consolidated financial statements and our auditor's report thereon. Management is responsible for the other information. In
addition, those charged with governance are responsible for overseeing the Group's reporting process of the other
information.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form
of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial
statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we
are required to report that fact.
We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in
accordance with International Financial Reporting Standards, and for such internal control as management determines is
necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether
due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic
alternative but to do so.
Those charged with governance are responsible for overseeing the Group's financial reporting process.
Auditor's Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
auditing standards generally accepted in Japan will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise professional judgment
and maintain professional skepticism throughout the audit. We also:
・ Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
・ Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances, while the purpose of the consolidated financial statement audit is not to express an opinion on the
effectiveness of the Group's internal control.
・ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
・ Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant
doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a
going concern.
・ Evaluate whether the presentation and disclosures of the consolidated financial statements are in accordance with
International Financial Reporting Standards, the overall presentation, structure and content of the consolidated financial
statements, including the disclosures, and whether the consolidated financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
・ Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities
within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction,
supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our
audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the consolidated financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of
such communication.
Interest required to be disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Group which is required to be disclosed
pursuant to the provisions of the Certified Public Accountants Act of Japan.
Kosaku Kawahara Masahide Kobayashi

Designated Engagement Partner Designated Engagement Partner
Certified Public Accountant Certified Public Accountant
August 10, 2023

TOYOTA INDUSTRIES CORPORATION
2-1, Toyoda-cho, Kariya-shi, Aichi 448-8671, Japan
Telephone: +81-(0)566-22-2511 Facsimile: +81-(0)566-27-5650
www.toyota-industries.com

2023 Annual Financial Report E

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2023 Annual Financial Report E

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Annual Financial Report

TOYOTA INDUSTRIES CORPORATION

< IFRS >

FY2019 FY2020 FY2021 FY2022 FY2023

Net sales (Millions of yen) 2,214,946 2,171,355 2,118,302 2,705,183 3,379,891

Operating profit (Millions of yen) 134,684 128,233 118,159 159,066 169,904

Profit (Millions of yen) 159,778 150,187 141,435 185,350 198,716

Profit: attributable to owners of the parent

Comprehensive income (Millions of yen) (16,789) 10,474 854,098 751,823 (26,348)

Share of equity attributable to owners

Total assets (Millions of yen) 5,261,174 5,279,653 6,503,986 7,627,120 7,821,185

Equity per share: attributable to owners

Earnings per share－basic (Yen) 491.97 469.85 440.28 580.73 621.17

Earnings per share－diluted (Yen) 491.97 469.85 440.28 580.73 621.17

Ratio of equity attributable to owners

Price-to-earnings ratio (Times) 11.28 11.02 22.39 14.58 11.83

Net cash provided by operating activities

(2) Operating performance highlights by business segment

(3) Operating profit

(4) Profit before income taxes

(5) Profit attributable to owners of the parent

2. Consolidated Financial Condition

(2) Financial policy

6. Strategies and Outlook

i) Thoroughly adhere to the basics

ii) Strengthen management platform

(2) Product development capabilities

(3) Intellectual property rights

(4) Product defects

(6) Reliance on suppliers of raw materials and components

(7) Environmental regulations

(8) Compliance Risks

(9) Alliances with other companies

(10) Exchange rate fluctuations

(12) Effects of disasters, power outages and other incidents

(13) Latent risks associated with international activities

(14) Post-employment benefits

9. Material Contract Agreements

(1) Historical background

(2) Capital relationship

(3) Business relationship

(4) Contributions to the Toyota Group

Cash and cash equivalents 5 247,085 202,731

Trade receivables and other receivables 6 1,121,491 1,398,757

Other financial assets 7 12,672 5,399

Inventories 8 433,961 524,385

Income tax receivables 28,906 26,262

Other current assets 83,034 99,313

Total current assets 2,255,827 2,677,024

Property, plant and equipment 9, 30 1,134,074 1,237,540

Goodwill and intangible assets 10, 30 395,882 468,368

Trade receivables and other receivables 6 2,334 1,459

Investments accounted for by the equity method 11 21,337 23,987

Other financial assets 7 3,734,978 3,338,505

Net defined benefit assets 17 37,408 27,887

Deferred tax assets 25 39,908 37,992

Other non-current assets 5,368 8,421

Total non-current assets 5,371,292 5,144,161

Other comprehensive income －－－－ 466,017 13,896

Total comprehensive income －－ 180,306 － 466,017 13,896

Repurchase of treasury stock 18 －－－ (18) －－

Disposal of treasury stock 18 － 0 － 0 －－

Other increases (decreases) －－－－－－

Other comprehensive income －－－－ (284,915) 685

Total comprehensive income －－ 192,861 － (284,915) 685

Repurchase of treasury stock 18 －－－ (5) －－

Disposal of treasury stock 18 － 0 － 0 －－

Other increases (decreases) － (1,201) －－－－