fy2007 financial results · 2019-02-20 · 0.3603 0.2952 0.2719 + 4 yen + 12 yen 13.8% 19.2% 14.1%...

Toyota Motor CorporationToyota Motor CorporationMay 9, 2007May 9, 2007

FY2007 Financial ResultsFY2007 Financial Results- prepared in accordance with U.S. GAAP -

2Cautionary Statement with Respect to Forward-Looking Statements

This presentation 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.

3Caution concerning Insider Trading

Under 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.

Takeshi SuzukiTakeshi Suzuki

Senior Managing DirectorSenior Managing Director

5Consolidated Vehicle Sales

789

2,2732,364

2,9422,556

1,2241,023

880

1,2961,151

0

2,000

4,000

6,000

8,000

'05/4-'06/3 '06/4-'07/3

OtherAsiaEuropeN. AmericaJapan

(thousands of vehicles)7,974

Figures in parenthesis represent year-on-year change

8,524 (+ 550)

(+ 145)

(+ 201)

(+ 386)

(- 91)

(- 91)

6Consolidated Financial Summary

Net RevenuesNet Revenues (+ 13.8%)(+ 13.8%)(year-on-year change)

Operating IncomeOperating Income (+ 19.2%)(+ 19.2%)

Net IncomeNet Income (+ 19.8%)(+ 19.8%)

23.948023.94802.23862.23861.64401.6440

trillion yentrillion yen



- Significant increase in revenues and earnings through global sales growth

- Record results in net revenues, operating income and net income

Highlights

7Business Environment

Product Quality

Raw Material Environment& Safety

Energy Sources

OverseasProduction

Emerging Markets

-Challenging supply /demand balance

- Rising prices

- Stringent Regulations- Customer needs

- Limited availability offossil fuels

- Development ofalternative fuels

- Longer period ofownership

- Increased technological content

- Exceeding domesticproduction volume

- Establishing localproduction and supply

Turning into Opportunities

8Growth PhilosophyStable & Long-term Growth

Growth Drivers

Full-line & All Regions

RisksRisksProduction& Supply

Technology

Marketing

Avoid or Absorb

Take-in

OpportunitiesOpportunitiesProducts

Product Quality / CostsHuman Resources

For Continued Growth

Quality Improvement Solid Foundation

FY2007/FY2008Main Action Plans

North America – Product Enhancement & Localization of Production

China – Rapid Establishment of Local Operations

Global Core Models – Worldwide Launch

VI Activities – Implementation

Technology – Development of Future Growth Areas

10North America – Product Enhancement & Localization of Production

FY2007- Start of Texas plant- New Tundra completing full line-up

FY2008- Subaru of Indiana Automotive starting production- Preparation for new plant in Canada and Mississippi

-Strengthen product line-up-“Build where we sell” X Self-reliance of overseas operations

Quality ImprovementQuality Improvement

Segment model 1970‘s 1980‘s 1990‘s 2000‘s

Large Avalon

Medium

Compact

Large Tundra

Small TacomaPickup

CamrySedan

Corolla

Luxury RX

MediumSUV

Minivan

Small

LightTracks Highlander

RAV4

Sienna

Passenger Vehicle

NG Highlander

RAV4

FullFullLineLine--upup

Start of LocalProduction

Capacity Expansion/Additional Plants

Start of LocalProduction (Plan)

11China – Rapid Establishment of Local Operations

- Incorporation of local requirements in global models and smooth start-up- Rapid expansion of sales network particularly in urban areas

- Guangzhou Camry: Start of production - Tianjin NG Corolla: Start of production- Network expansion of 3 dealer channels

Camry

FY2007

Corolla

FY2008


(thousands of vehicles)

Number of sales/production/sales outlets

308

1831169850

285

14495534

372

215

147

9250

0

100

200

300

400

2002 2003 2004 2005 20060

100

200

300

400Vehicle SalesVehicle ProductionSales Outlets

(outlets)

CY

12Global Core Models – Worldwide launch

- Global sharing of production design, production facilities and marketing tools- Concentrated mass trial production & technical training in Japan


FY2007Camry

FY2008RussiaTaiwan, Australia, Thailand, China

CorollaAuris

China, South Africa, Taiwan, Thailand, Brazil, etc.

Japan, UK, Turkey

Japan Overseas plant

Common production facilities

Mass trial production

Overseas plant

Common design planStandardized operation

Regional requirements

Dealer

Dealer

Common marketing tools

Worldwide Launch

- Standardized quality- Shorter period- Higher efficiency

Technical training

GPC*

*GPC = Global Production Center

13VI Activities – Implementation

Focus on activities for vehicles produced overseas and compact vehicles and implement cost reductions as planned

- Identification through 2010 Models- Inclusion of Material-focused Activities

- Start of Implementation- Emphasis on vehicles produced overseas

and compact vehicles

FY2007 FY2008

Body SystemECU

Chassis System ECU

Power-train System ECU

Higher Function + Fewer ECUs + Smaller ECUs

Starting with a model to be launched in FY2008

BodySystemChassisSystem

Power-train System

-New Function

-Respond to Tougher Regulations

【Integration within systems

】

【Integration among system

s

】

*ECU = Electronic Control Unit

【Example: ECU*】-Improve Attractiveness

-New Function

-Respond to Tougher Regulations

-Improve Attractiveness


14Technology – Development of Future Growth Areas

- Environmental Technology(fuel efficiency, CO2 , emissions)

- Next Generation HV- Alternative Fuel Vehicles(bio fuels, electricity, hydrogen)

- Safety Technology(advanced technology application to products)

- Low Cost Technology


R&D and resources investment for attractive product and future technology

New Product Development

Development of Future Growth

Areas

HR Development

Human Resources

R&D Investment

Attractive Products Meeting Market

Demands

Advanced Technology

High Design Quality Efficiency (IT Utilization)

Enhancement

15Consolidated Financial Summary

FY2007(’06/4-’07/3)

FY2007(’06/4-’07/3) ChangeChange

(trillions of yen)

23.948023.9480

2.23862.2386

2.38252.3825

1.64401.6440

117 yen117 yen

150 yen150 yen

21.036921.0369

1.87831.8783

**2.08732.0873

1.37211.3721

113 yen113 yen

138 yen138 yen

2.91112.9111

0.36030.3603

0.29520.2952

0.27190.2719

+ 4 yen+ 4 yen

+ 12 yen+ 12 yen

13.8%13.8%

19.2%19.2%

14.1%14.1%

19.8%19.8%

Other income included a 143.3 billion yen evaluation gain resulting fromthe merger of the Mitsubishi-Tokyo Financial Group and the UFJ Holdings

FY2006(’05/4-’06/3)

FY2006(’05/4-’06/3)

**

Net RevenuesNet Revenues

FOREX RatesFOREX Rates

Net IncomeNet Income

Income before income taxes, Income before income taxes, minority interest and equity minority interest and equity

earnings of affiliated companiesearnings of affiliated companies

Operating IncomeOperating Income

$$€€

16Contributing Factors to Consolidated Operating Income

1,250.0

1,500.0

1,750.0

2,000.0

2,250.0

'05/4-'06/3 '06/4-'07/3

2,238.6(+ 360.3)

1,878.3

(billions of yen)

Increase in Expenses- 359.7

Cost Reduction Efforts+ 100.0Marketing Efforts

+ 330.0

Effects of favorableFOREX rates

+ 290.0

- 95.7

- 70.6- 99.7

R&D Expenses .............Depreciation and CAPEX related costs.....Labor costs....................

Expenses related to business expansion ....Changes in the accounting

of depreciation ...........Valuation loss of interest rate swaps ............

- 128.4

+ 46.3- 11.6

<Details of Increases in Expenses>

17Geographic Operating Income: Japan

- Increased exports contributed to earnings growth- Product mix improved thanks to Lexus LS, etc.

389.3383.5391.4

293.0197.5

408.9

281.1188.4

659541530536550 543571

707

1,3311,2191,231

1,3161,177

1,0681,123

1,319

0

200

400

'05/4-6 '05/7-9 '05/10-12 '06/1-3 '06/4-6 '06/7-9 '06/10-12 '07/1-3Operating Income (billions of yen)Consolidated Vehicle Sales (thousands of vehicles)Consolidated Vehicle Production (thousands of vehicles)

’05/4-’06/31,075.9

’06/4-’07/31,457.2

(billions of yen)

18Geographic Operating Income: North America

- Strong sales driven by new models- Temporary costs increased due to start up of Texas plant and model change

100.099.1110.4140.1130.7

99.3127.8137.8

714764

717

604641

747

643 668

0

100

200

'05/4-6 '05/7-9 '05/10-12 '06/1-3 '06/4-6 '06/7-9 '06/10-12 '07/1-3

Operating Income (billions of yen) Consolidated Vehicle Sales (thousands of vehicles)

(billions of yen)

’05/4-’06/3495.6

’06/4-’07/3449.6

19Geographic Operating Income: Europe

- Higher level of earnings due to popular core models(Yaris, Aygo & RAV4)

36.534.829.5

36.5

23.427.226.6

16.7

329306

281

242256

308

246

279

0

25

50

'05/4-6 '05/7-9 '05/10-12 '06/1-3 '06/4-6 '06/7-9 '06/10-12 '07/1-3

Operating Incom e (billions of yen) Consolidated Vehicle Sales (thousands of vehicles)

(billions of yen)

’05/4-’06/393.9

’06/4-’07/3137.3

20Geographic Operating Income: Asia

- Vehicle sales declined due to weak demand in Indonesia and Taiwan

28.228.131.330.035.6

31.538.639.8

203204189219

229 193217 215

0

25

50

'05/4-6 '05/7-9 '05/10-12 '06/1-3 '06/4-6 '06/7-9 '06/10-12 '07/1-3


’05/4-’06/3145.5

’06/4-’07/3117.6

(billions of yen)

21Geographic Operating Income: Other

- IMV and Camry supported substantial earnings growth

16.4

31.0

20.215.9

19.216.314.7

17.0

319340337

284272300303 292

0

20

40

'05/4-6 '05/7-9 '05/10-12 '06/1-3 '06/4-6 '06/7-9 '06/10-12 '07/1-3


(billions of yen)

’05/4-’06/367.2

’06/4-’07/383.5

22Business Segment: Financial Services

- Profit increased as balance of finance steadily grew- Valuation loss on interest rate swaps = 11.6 billion yen

37.341.3

32.2

47.743.8

25.5

46.839.7

0

20

40

'05/4-6 '05/7-9 '05/10-12 '06/1-3 '06/4-6 '06/7-9 '06/10-12 '07/1-3

Operating Incom e (billions of yen)

(billions of yen)

’05/4-’06/3155.8

’06/4-’07/3158.5

23Equity Earnings of Affiliated Companies

- Strong performance led by Toyota Group companies in Japan andChinese joint venture companies

54.0

66.1

33.2

56.2

35.1

47.845.835.6

0

50

'05/4-6 '05/7-9 '05/10-12 '06/1-3 '06/4-6 '06/7-9 '06/10-12 '07/1-3

Equity Earnings of Affiliated Com panies (billions of yen)

(billions of yen)

’05/4-’06/3164.3

China 11.1 (included)

’06/4-’07/3209.5

China 24.1 (included)

24FY2007 Consolidated CAPEX, Depreciation, R&D

CapitalExpenditure

CapitalExpenditure

ConsolidatedConsolidated

N. AmericaN. America

JapanJapan

R&D ExpensesR&D ExpensesDepreciationExpenses

DepreciationExpenses

EuropeEurope

AsiaAsia

OthersOthers

1,482.61,482.6

815.3815.3

319.3319.3

119.7119.7

141.6141.6

86.786.7

(- 46.2)

(- 10.8)

(+ 9.7)

(- 94.0)

(+ 49.0)

(- 0.1)

947.0947.0

592.5592.5

165.3165.3

89.589.5

61.961.9

37.837.8

(+ 55.6)

(+ 13.6)

(+ 13.9)

(+ 23.6)

(+ 0.2)

(+ 4.3)

890.7890.7 (+ 78.1)

(billions of yen)


25Unconsolidated Financial Summary (Japan GAAP)

11.571811.5718

1.15091.1509

1.55511.5551

1.06011.0601

10.191810.1918

0.84790.8479

1.10471.1047

0.76590.7659

1.38001.3800

0.30300.3030

0.45040.4504

0.29420.2942

13.5%13.5%

35.7%35.7%

40.8%40.8%

38.4%38.4%

FY2007(’06/4-’07/3)

FY2007(’06/4-’07/3) ChangeChangeFY2006

(’05/4-’06/3)FY2006

(’05/4-’06/3)

(trillions of yen)



Ordinary IncomeOrdinary Income


26Contributing Factors to Unconsolidated Operating Income

600.0

800.0

1,000.0

1,200.0

'05/4-'06/3 '06/4-'07/3

1,150.9 (+ 303.0)

847.9

Increase in Expenses- 187.0

Cost Reduction+ 70.0Marketing Efforts

+ 160.0

Effects of favorableFOREX rates

+ 260.0

- 73.8

- 21.1- 34.8

R&D Expenses ............Depreciation and CAPEX related costs....Labor costs...................

Expenses related to business expansion ....Changes in the accounting

of depreciation ...........

- 103.6

+ 46.3

<Details of Increases in Expenses>

(billions of yen)

27Consolidated Prospects: Vehicle Sales

890

2,3202,273

2,9902,942

1,2701,224789

1,4201,296

0

2,000

4,000

6,000

8,000

'06/4-'07/3 '07/4-'08/3

OtherAsiaEuropeN. AmericaJapan

8,890 (+ 366)

(+ 124)

(+ 46)

(+ 48)

(+ 47)

(+ 101)

8,524(thousands of vehicles)


28FY2008 Consolidated Prospects

25.000025.0000

2.25002.2500

2.40002.4000

1.65001.6500

115 yen115 yen

150 yen150 yen

23.948023.9480

2.23862.2386

2.38252.3825

1.64401.6440

117 yen117 yen

150 yen150 yen

1.05201.0520

0.01140.0114

0.01750.0175

0.00600.0060

-- 2 yen2 yen

－－

4.4%4.4%

0.5%0.5%

0.7%0.7%

0.4%0.4%

FY2008(’07/4-’08/3)


(’06/4-’07/3)FY2007

(’06/4-’07/3)


FOREX RatesFOREX Rates


Income before income taxes, Income before income taxes, minority interest and equity minority interest and equity

earnings of affiliated companiesearnings of affiliated companies


$$€€

(trillions of yen)

29FY2008 Consolidated CAPEX, Depreciation, R&D

1,500.01,500.0

800.0800.0

400.0400.0

110.0110.0

110.0110.0

80.080.0

(+ 17.4)

(- 9.7)

(- 31.6)

(- 15.3)

(+ 80.7)

(- 6.7)

1,020.01,020.0

630.0630.0

190.0190.0

90.090.0

65.065.0

45.045.0

(+ 73.0)

(+ 0.5)

(+ 3.1)

(+ 37.5)

(+ 24.7)

(+ 7.2)

940.0940.0 (+ 49.3)

(billions of yen)

CapitalExpenditure

CapitalExpenditure R&D ExpensesR&D ExpensesDepreciation

ExpensesDepreciation

Expenses

ConsolidatedConsolidated

N. AmericaN. America

JapanJapan

EuropeEurope

AsiaAsia

OthersOthersFigures in parenthesis represent year-on-year change

30FY2008 Unconsolidated Prospects

11.700011.7000

1.10001.1000

1.59001.5900

1.13001.1300

11.571811.5718

1.15091.1509

1.55511.5551

1.06011.0601

0.12820.1282

-- 0.0500.05099

0.03490.0349

0.06990.0699

1.1%1.1%

-- 4.4%4.4%

2.2%2.2%

6.6%6.6%



Ordinary IncomeOrdinary Income


FY2008(’07/4-’08/3)


(’06/4-’07/3)FY2007

(’06/4-’07/3)

(trillions of yen)

31Shareholder Return

13 14 14 2025

40

55

70

16141111 20 25 3550

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 06/4-07/3

Interim Year-end

Dividend : 120 yen per shareTotal Amount of Payout : 384.6 billion yenConsolidated Payout Ratio : 23.4％

(year-on-year change +2.1％)

(year-on-year change 30 yen up)

120

24

90

6545

362825

32Shareholder Return

Enabling Amount(maximum limitation)

250 billion yen30 million shares

ShareShareBuybackBuyback

106.4134.3

45.4

263.6 277.5

453.4398.8

266.2

133.6

299.5

0

100

200

300

400

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 06/4-07/3

Share buyback over the last 10 years (billions of yen)

33FY2008 Toyota’s Operations Prospects

FY2008(’07/4-’08/3)

FY2008(’07/4-’08/3)

Sales (Overseas)Sales (Overseas)ExportsExports

Sales Sales (Japan)(Japan)

FY2007(’06/4-’07/3)

FY2007(’06/4-’07/3)

1,7201,7202,5902,5906,9006,900

1,6591,6592,5972,5976,4436,443

AutomotiveAutomotiveProductionProduction

JapanJapan

OverseasOverseas

Housing SalesHousing Sales 5,2005,200 5,0015,001

4,2804,280 4,1854,1854,3804,380 3,9393,939

Units Units

8,6608,660 8,1248,124

(thousands of vehicles)(thousands of vehicles)

TotalTotal

FY2007 Financial ResultsFY2007 Financial Results- prepared in accordance with U.S. GAAP -

Toyota Motor CorporationToyota Motor CorporationMay 9, 2007May 9, 2007

fy2007 financial results · 2019-02-20 · 0.3603 0.2952 0.2719 + 4 yen + 12 yen 13.8% 19.2% 14.1%...

Documents