fy2006 financial results - toyota · 2019. 2. 20. · fy2006 summary (thousands of vehicles) (+566)...
TRANSCRIPT
FY2006 Financial ResultsFY2006 Financial Results-- prepared in accordance with U.S. GAAP prepared in accordance with U.S. GAAP --
Toyota Motor CorporationMay 10, 2006
2
Cautionary Statement with Respect to Forward-Looking StatementsThis report contains forward-looking statements that reflect Toyota’s plans and expectations. These
forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause Toyota’s actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. These factors include: (i) changes in economic conditions and market demand affecting, and the competitive environment in, the automotive markets in Japan, North America, Europe and other markets in which Toyota operates; (ii) fluctuations in currency exchange rates, particularly with respect to the value of the Japanese yen, the U.S. dollar, the euro, the Australian dollar and the British pound; (iii) Toyota’s ability to realize production efficiencies and to implement capital expenditures at the levels and times planned by management; (iv) changes in the laws, regulations and government policies in the markets in which Toyota operates that affect Toyota’s automotive operations, particularly laws, regulations and policies relating to trade, environmental protection, vehicle emissions, vehicle fuel economy and vehicle safety, as well as changes in laws, regulations and government policies that affect Toyota’s other operations, including the outcome of future litigation and other legal proceedings; (v) political instability in the markets in which Toyota operates; (vi) Toyota’s ability to timely develop and achieve market acceptance of new products; and (vii) fuel shortages or interruptions in transportation systems, labor strikes, work stoppages or other interruptions to, or difficulties in, the employment of labor in the major markets where Toyota purchases materials, components and supplies for the production of its products or where its products are produced, distributed or sold.
A discussion of these and other factors which may affect Toyota’s actual results, performance, achievements or financial position is contained in Toyota’s annual report on Form 20-F, which is on file with the United States Securities and Exchange Commission.
3
Caution concerning Insider TradingUnder Japanese securities laws and regulations (the "Regulations"), subject to certain exceptions, any person who receives certain material information relating to the business, etc., of Toyota which may be contained in this document is prohibited from trading in Toyota's shares or certain other transactions related to such shares (as set forth in the Regulations) until such material information is deemed to be made public. Under the Regulations, material information is deemed to be made public when (i) such material information is disclosed by ways of electromagnetic means as prescribed by the ordinance of the Cabinet Office (posting on the TDnet (Timely Disclosure Network) information service and ED-NET (Electronic Disclosure Network) information service ) or (ii) twelve (12) hours have elapsed since a listed company, such as Toyota, disclosed such material information to at least two (2) media sources as prescribed by the Regulations.
4
Takeshi SuzukiTakeshi Suzuki
Senior Managing DirectorSenior Managing Director
5
880
2,3642,381
2,5562,271
1,023979833
1,151944
0
2,000
4,000
6,000
8,000
'04.4-'05.3 '05.4-'06.3Japan N.America Europe Asia Other
(-17)
(+44)(+47)
(+207)
[7,637]7,408
[8,252]7,974
Consolidated Vehicle Sales
(+285)
FY2006 SummaryFY2006 Summary
(+566)(thousands of vehicles)
Figures in brackets show total retail unit sales of Toyota, Daihatsu, and Hino vehicles.Figures in parentheses show year-on-year changes
6
FY2006 SummaryFY2006 Summary
Operating Income by Quarter(billions of yen)
(17.2% up)
(12.3% up)
(13.4% up)Year-on-year Change
805.9866.2 1,068.9
809.4
0200400600800
1,000
1st Half 2nd Half04.4-05.3 05.4-06.3
Consolidated Net Revenue:21,036.9 billion yen
Consolidated Operating Income:1,878.3 billion yen
Consolidated Net Income:1,372.1 billion yen
7
Strength of Products, Technologies and Cost
Reduction
Improve QualityImprove QualityImprove Quality
Resources (Finance, Human Resources)Resources (Finance, Human Resources)
Every Area Segment &
Product Category
Every Area Segment &
Product Category
OpportunityOpportunity
RiskRisk
Avoid or absorb
Take-in
Stable & LongStable & Long--term Growthterm Growth
Growth to AimGrowth to Aim
Capabilities of Production and Supply
Marketing Capability
8
05.405.4--06.3 06.3 Major ActivitiesMajor Activities
Taking in market growth through improvements of Tech. and products
Creating and developing a new market through HV system
Increasing production capacity to respond flexibly to global demand growth
Building brand in the global premium vehicle market
9
<05.4-06.3> Strength of Products & Tech.Toyota products won customers’ trust through responding to market needs
Tacoma (NA)
Avalon (NA)
Use marketing expenses efficiently, and increase sales by new productsLead to profit growth
Increased global sales by strength of products(Strength of Product) = Quality, Performance, Fuel Economy, Safety Tech.
Environmentally Friendly Features, Price, Design, etc.
Vitz / Yaris (Japan-NA-Europe)
RAV4(Japan-NA-Europe)
Fortuner (Asia -Other Region)
Mark X / REIZ (Japan-China)
<Major New Products>
10
Reduce Cost(weight, volume)
<05.4-06.3> Strength of Products & Tech.Hybrid System : Improve power performance & Reduce cost
Sales Units of Sales Units of HVsHVs 263K units (YOY change:120K units up) 263K units (YOY change:120K units up) Achieved 600K units of cumulative salesAchieved 600K units of cumulative sales
’97~ ’03~
Aim 1 million of annual sales units as a market leader
World 1st Production Model
of HV System
- Eco + Power- Halve Cost
Introductory Phase
THS* THS II
(Plan to achieve the target in early 2010s)
*THS:Toyota Hybrid System
- Expand models - Further Reduction
of Cost
Growing Phase Spreading Phase
Improve Performance
& Fuel Economy
11
<05.4-06.3> Production CapabilityIncreased production capacity in Japan :
To respond quickly and flexibly to growing demands in globeBasic Policy : Manufacture where the demand is
(Increase production capacity outside Japan)
04 07
Overseas
Japan
080605
Texas200k
TPCA100k
Russia50k
Tianjin 2nd Plant
100k
UK(expansion)
+65k
Thailand 3rd Plant
100k
Guangzhou100kThailand
(expansion)+90k
Canada 2nd
Plant150k
Tianjin 3rd Plant
200k
France(expansion)
+30k
Mexico(expansion)
+20kMexico30k
Tianjin 1st Plant (expansion)
+30k
Turkey France(expansion)
+50k +50k
Demand exceedingthe plan
•• Quick startQuick start--upup•• Flexibility in response to Flexibility in response to
demand changedemand change•• Efficient investmentEfficient investment
KyushuKyushu200k200k
IwateIwate100k100k
Increase in overseas Increase in overseas production capacityproduction capacity
Equivalence to domestic production in quality and
investment efficiency
SIAOEM100k
Increase in domestic Increase in domestic production capacityproduction capacity
(3.5mil(3.5mil►►3.8mil)3.8mil)
S. Africa(expansion)
+90k
12
<05.4-06.3> Marketing & Sales CapabilityDevelopment of Global Premium Brand ‘Lexus’
JapanJapan::New LaunchNew Launch EuropeEurope::RebuildingRebuilding China China ::
Lexus’s Flag Ship, New ‘LS’Debut in 2006
Lexus’s Flag Ship, New ‘LS’Debut in 2006
Global Sales Units 411k units/year Global Sales Units 411k units/year (YOY Change; 72k up)(YOY Change; 72k up)
Fiscal Year 2006 : ‘Dawn for Global Lexus’
N. America : Established #1 Position in Luxury Brand SegmentN. America : Established #1 Position in Luxury Brand Segment
05.8-06.3 17k units(7 months)Established brand imagein a short periodOutlets: 142 (05.8)->151(06.3)
05.8-06.3 17k units(7 months)Established brand imagein a short periodOutlets: 142 (05.8)->151(06.3)
05.4-06.3 39k unitsExpanded Lexus exclusive networkOutlets: 72 (05.3)->93(06.3)
05.4-06.3 39k unitsExpanded Lexus exclusive networkOutlets: 72 (05.3)->93(06.3)
05.4-06.3 6k unitsBuilt Lexus outletsOutlets: 10(06.3)
05.4-06.3 6k unitsBuilt Lexus outletsOutlets: 10(06.3)
Maintained exceeding sales units: 05.4-06.3 322k units(YOY change; 34k up)Maintained exceeding sales units: 05.4-06.3 322k units(YOY change; 34k up)
Building Building FoundationFoundation
13
06.406.4--07.307.3Major ActivitiesMajor Activities
Global Core ModelsInnovative Cost ReductionEfficient Start-up of New Overseas Plants
14
<06.4-07.3> Strength of Products & Tech.Develop Appealing ‘Global Core Models’
34% 34% of Consolidated Sales occupied by of Consolidated Sales occupied by Global Core ModelsGlobal Core Models (05.4-06.3)
Development Concept Development Concept ““Global Best, Local BestGlobal Best, Local Best””Development of global common platform and key componentsAdoption of local market needs in design and upper body development
(# of unit sales based on global sales in the year 05.4-06.3)
Develop products efficiently and globallyCreate products to satisfy customers’ needs
VitzVitz--YarisYaris432k unit sales /year
05 Full Model Change
CamryCamry536k unit sales /year
06 Full Model Change
CorollaCorolla1,207k unit sales /year
IMVIMV537k unit sales /year
04 Launch
15
<06.4-07.3> Cost ReductionInnovative Cost Reduction (=VI Activities)
Start with advanced development conceptexecute cost reduction in system-by- system
Aim to exceed Aim to exceed CCC21CCC21 in terms of speed, scale and reducing amountsin terms of speed, scale and reducing amounts
CCC21
CCC21Activity
Realization of Cost
Reduction VI Activities
VI Activities’00~ ’05~
’07~’00~
Approx. 60 units 4 Functions
Cost Reduction in ECU system ►► Unite separate ECUs
- Powertrain Control - Multi-media
Reclassify units with review the functions
- Body Control- Safety Control
*ECU:Electronic Control Unit
16
<06.4-07.3> Production Capability Efficient Start-up of Overseas New Plants
Texas, USA (October)Guangzhou, China (May)
To complete start-up programs in N.A areaTo achieve full production
with high quality by newest GBL
06.4-07.3 Overseas Production Plan ; 329k units up YOY*
TMMTX(Texas)
TMMI(Indiana)Support
NA. GPC(Kentucky)
Training
Expand efficient production line globally
<Tundra --- 200k /year><Camry --- 100k /year>
Strengthen self reliance of overseas operation
*GBL:Global new Body Line
*Toyota/Lexus
17
Strategy of Global Premium Brand
Cost Reduction (VI Activities)
Global Core Models
Global Sales Growth by Strength of Products & Tech.
Increase of Global Production Capacity
Hybrid Strategy
09.3
Expectation of Contribution to Profit
10.305.3 08.307.306.3
Road Map towards Profit Realization
Ended in
1804.4-05.3 05.4-06.3 06.4-07.3 07.4-08.3 08.4-09.3
-- Marketing activities with keeping balance between achieving salesefforts and securing profits
-- Cost reduction by VI activities and global management of fixed cost
-- Marketing activities with keeping balance between achieving salesefforts and securing profits
-- Cost reduction by VI activities and global management of fixed cost
‘Growth of Sales/Revenue’ X ‘High Level of Operating Margin’‘‘Growth of Sales/RevenueGrowth of Sales/Revenue’’ X ‘‘High Level of Operating MarginHigh Level of Operating Margin’’
Increasing revenue
Increasing Profit
XHigh Level (approx. 9%)Op.
Margin
Revenue
Op. Margin
Consistency of Growth and EfficiencyConsistency of Growth and Efficiency
18.5521.03
1.871.67
Actual Forecast
(trillions of yen)
Margin
=
Actual Forecast Forecast
19
850
2,3902,364
2,8002,556
1,1601,023880
1,2501,151
0
2,000
4,000
6,000
8,000
'05.4-'06.3 '06.4-'07.3Japan NA Europe Asia Other Region
(+26)
(+137)(-30)
(+99)7,974
8,450 (+476)(thousands of unit)
(+244)
06.406.4--07.307.3 Consolidated ProspectsConsolidated ProspectsVehicle Unit SalesVehicle Unit Sales
Figures in parentheses show year-on-year changes
20
06.406.4--07.307.3 Consolidated ProspectsConsolidated Prospects
Forex Rate 110 yen/1$135 yen/1Euro
Consolidated Net Revenue:
Consolidated Operating Income:
Consolidated Net Income:
22,300 billion yen
1,900 billion yen
1,310 billion yen
21
Shareholder Return Policy
Dividend-Aim for 30% payout ratio on consolidated basisShare Buyback-Improve capital efficiency(ROE)-Provide support in case of demand-supply imbalance
22
24 25 28 3645
65
35252011 11 14 16
99.4-00.3 00.4-01.3 01.4-02.3 02.4-03.3 03.4-04.3 04.4-05.3 05.4-06.3
Annual Mid-term
Dividend : 90 yen per share
Total Amount of Payout :292.1 billion yen
Consolidated Payout Ratio : 21.3% (YOY change 3.0% up)
Total Amount of Payout :292.1 billion yen
Consolidated Payout Ratio : 21.3% (YOY change 3.0% up)
9090 yenyen
(yen)
Shareholder Return
(YOY change: 25 yen up)
23
Enabling Amount (maximum limitation)
200 billion yen / 30 million shares
Enabling Amount (maximum limitation)
200 billion yen / 30 million shares
1,779.62,045.8
2,179.4
1,380.7
927.3649.8
100.0206.4
340.7 386.2
96.4-97.3
97.4-98.3
98.4-99.3
99.4-00.3
00.4-01.3
01.4-02.3
02.4-03.3
03.4-04.3
04.4-05.3
05.4-06.3
Share Buyback
<Cumulative Share Buyback in the past ten years>
(billions of yen)
Shareholder Return
24
FY2006FY2006(05.4(05.4--06.3)06.3)
FY2005FY2005(04.4(04.4--05.3)05.3)
ChangesChanges
Consolidated Financial Summary
17.2200.91,171.21,372.1N e t I n c o m e
+5yen/1$108yen/1$113yen/1$F o r e x R a t e
+3yen/1Euro135yen/1Euro138yen/1Euro
19.0332.71,754.6(*2)2,087.3 Income before income taxes, minority interest and equity in earnings of affiliated companies
12.3206.21,672.11,878.3Operating Income13.42,485.418,551.521,036.9N e t R e v e n u e s%(*1)(billions of yen)(billions of yen)(billions of yen)
*2 : Other Income included a 143.3 billion yen evaluation gain resulting fromthe merger of the Mitsubishi-Tokyo Financial Group and the UFJ Holdings
*1 : percentage changes year-on-year
25
1,100
1,200
1,300
1,400
1,500
1,600
1,700
1,800
'04.4-'05.3 '05.4-'06.3
1,878.3(206.2)
1,672.1
Contributing Factors to Consolidated Operating Income
(billions of yen)
Increases in Expenses -307.3R&D Expenses -49.6Depreciation and CAPEX related costs -64.3Labor costs -95.1Other expenses -98.3
Special Factor -156.5Changes in the accounting of depreciation -46.3Valuation losses from interest rate swaps -45.8Prior-year adjustment -17.2Decrease in DAIKO HENJO -47.2
Marketing Efforts (volume, mix, etc.)
+240.0Effects of favorable ForexRates +300.0
Cost Reduction Efforts +130.0
26
Geographic Operating Income: Japan
237.6188.4 197.5
408.9
253.0281.1
237.3 259.3
538 568 573 550 536 571707702
0.0
100.0
200.0
300.0
400.0
'04.4-6 '04.7-9 '04.10-12 '05.1-3 '05.4-6 '05.7-9 '05.10-12 '06.1-3Operating Income(billions of yen)Consolidated vehicle sales(thousand of vehicles)
- Increased production by expansion of production capacity and contributed to profit increase
(billions of yen)
04.4-05.3
987.2
05.4-06.3 1,075.9
27
129.8114.9
127.8
75.0
137.8 130.7 127.8
99.3
604 668643641569576554572
0
50
100
150
'04.4-6 '04.7-9 '04.10-12 '05.1-3 '05.4-6 '05.7-9 '05.10-12 '06.1-3Operating Income (billions of yen)Consolidated vehicle sales (thousands of vehicles)
Geographic Operating Income: North America(billions of yen)
- Increase sales with favorable trends mainly in new products and compact vehicles
04.4-05.3 447.5
05.4-06.3 495.6
28
30.926.5
15.7 16.7
23.426.6 27.2
35.4
279246242256254249229247
0
10
20
30
40
'04.4-6 '04.7-9 '04.10-12 '05.1-3 '05.4-6 '05.7-9 '05.10-12 '06.1-3Operating Income (billions of yen)Consolidated vehicle sales (thousands of vehicles)
Geographic Operating Income: Europe(billions of yen)
- Steadily improved profit by quarters through launches of new products, with overwhelming investment for production expansion
04.4-05.3
108.5 05.4-06.3 93.9
29
24.419.1
25.1 25.2
35.638.6
31.5
39.8
215217219229252195184202
0
10
20
30
40
50
'04.4-6 '04.7-9 '04.10-12 '05.1-3 '05.4-6 '05.7-9 '05.10-12 '06.1-3Operating Income (billions of yen)Consolidated vehicle sales (thousand of vehicles)
Geographic Operating Income: Asia(billions of yen)
- Rose profit up to the higher level mainly due to IMV benefit
04.4-05.3 93.8
05.4-06.3 145.5
30
13.3 14.1
8.4
11.6
17.019.2
14.716.3
292303284272225246241232
0
5
10
15
20
'04.4-6 '04.7-9 '04.10-12 '05.1-3 '05.4-6 '05.7-9 '05.10-12 '06.1-3Operating Income (billions of yen)Consolidated vehicle sales (thousand of vehicles)
Geographic Operating Income:Other (Africa, Oceania, South and Central America, etc.)
04.4-05.3 47.4
05.4-06.3 67.2
- Rose profit up to the higher level mainly due to IMV benefit
(billions of yen)
31
46.2
56.5 58.7
39.4 39.743.8 46.8
25.5
0
10
20
30
40
50
'04.4-6 '04.7-9 '04.10-12 '05.1-3 '05.4-6 '05.7-9 '05.10-12 '06.1-3Operating Income (billions of yen)
Business Segment: Financial Services
(billions of yen)
04.4-05.3 200.8
05.4-06.3 155.8
- Valuation losses from interest rate swaps at TFC and TMCC: -45.8 bil. yen- Prior-year adjustment at TMCC: -17.2 bil. yen
32
34.7
24.1
39.3 41.335.6 35.1
45.8 47.8
0
10
20
30
40
'04.4-6 '04.7-9 '04.10-12 '05.1-3 '05.4-6 '05.7-9 '05.10-12 '06.1-3
Equity in Earnings of Affiliated Companies(billions of yen)
04.4-05.3 139.4
05.4-06.3 164.3
- Favorable performance mainly by domestic group affiliatesand Chinese joint venture companies.
33
FY2006 Consolidated CAPEX, Depreciation, R&DCapitalCapital
ExpenditureExpenditure(billions of yen)(billions of yen)
DepreciationDepreciationExpensesExpenses
(billions of yen)(billions of yen)
R&DR&DExpensesExpenses
(billions of yen)(billions of yen)
(+ 9.8)48.0( - 3.0)131.9Asia
33.5
75.9
165.1
568.9
891.4
(+ 14.6)
(+ 57.8)
(+116.6)
(+234.3)
(+441.6)
(+ 80.5)909.3Japan
(+ 8.6)86.8Other
(+ 4.6)130.5Europe
(+ 12.1)270.3North America
(+57.5)812.6(+115.6)1,528.8Consolidated
Figures in parentheses show year-on-year changes
34
FY2006FY2006(05.4(05.4--06.3)06.3)
FY2005FY2005(04.4(04.4--05.3)05.3) ChangesChanges
Unconsolidated Financial Summary (Japan GAAP)
44.7236.6529.3 765.9 Net Income
29.0 248.5856.2 1,104.7 Ordinary Income
20.9146.6701.3847.9Operating Income
10.6973.59,218.310,191.8Net Sales%(*)(billions of yen)(billions of yen)(billions of yen)
* percentage changes year-on-year
35
450
550
650
750
850
'04.4-'05.3 '05.4-'06.3
847.9(+146.6)
701.3
Contributing Factors to Unconsolidated Income
(billions of yen)Increases in Expenses -157.1R&D Expenses -38.6Depreciation and CAPEX related costs -17.1Labor Costs -30.6Other Expenses -70.8
Marketing Effort (volume, mix, etc.)
+40.0
Cost Reduction Effort +60.0
Effects of favorable ForexRates +250.0
Special Factor -46.3Changes in accounting of depreciation
36
FY2007FY2007(06.4(06.4--07.3)07.3)
FY2006FY2006(05.4(05.4--06.3)06.3) ChangesChanges
FY2007 Consolidated Prospects: Financial Summary
- 4.5- 62.11,372.11,310.0Net Income
-3yen/1$113yen/1$110yen/1$Forex Rate
-3yen/1Euro138yen/1Euro135yen/1Euro
- 5.6- 117.3(*2)2,087.31,970.0Income before income taxes, minority interest and equity in earnings of affiliated companies
1.221.71,878.31,900.0Operating Income6.01,263.121,036.922,300.0Net Revenues
%(*1)(billions of yen)(billions of yen)(billions of yen)
*2 : Other Income included a 143.3 billion yen evaluation gain resulting from the merger of the Mitsubishi-Tokyo Financial Group and the UFJ Holdings
*1 : percentage changes year-on-year
37
FY2007 Consolidated Prospects:CAPEX, Depreciation, R&D
CapitalCapitalExpenditureExpenditure(billions of yen)(billions of yen)
DepreciationDepreciationExpensesExpenses
(billions of yen)(billions of yen)
R&DR&DExpensesExpenses
(billions of yen)(billions of yen)
( + 7.0)55.0( + 3.1)135.0Asia
40.0
80.0
165.0
590.0
930.0
(+ 18.2)
( - 0.5)
(+ 59.7)
( - 59.3)
(+ 21.2)
(+ 21.1)850.0Japan
( + 6.5)105.0Other
( + 4.1)130.0Europe
( - 0.1)330.0North America
(+107.4)920.0(+ 38.6)1,550.0Consolidated
Figures in parentheses show year-on-year change projections
38
FY2007FY2007(06.4(06.4--07.3)07.3)
FY2006FY2006(05.4(05.4--06.3)06.3) ChangesChanges
FY2007 Unconsolidated Prospects: Financial Summary (Japan GAAP)
11.084.1765.9 850.0 Net Income
11.3 125.31,104.7 1,230.0 Ordinary Income
3.832.1847.9880.0Operating Income
7.9808.210,191.811,000.0Net Sales%(*)(billions of yen)(billions of yen)(billions of yen)
* percentage changes year-on-year
39
FY2007 Toyota’s Operations ProspectsFY2007FY2007
(06.4(06.4--07.3)07.3)FY2006FY2006
(05.4(05.4--06.3)06.3)
3,863Automotive Production
Japan 4,100
2,1262,350Exports
5,000
6,250
1,780
4,060
thousand of units
3,731Overseas
4,693Housing Sales
5,664Sales (Overseas)
1,769Sales (Japan)
thousand of units
<Reference Material>
units units
FY2006 Financial ResultsFY2006 Financial Results-- prepared in accordance with U.S. GAAP prepared in accordance with U.S. GAAP --
Toyota Motor CorporationMay 10, 2006