fy2007 first quarter financial results - global.toyotafy2007 1q presentation author: toyota motor...

FY2007 First Quarter Financial ResultsFY2007 First Quarter Financial ResultsThree months ended June 30, 2006Three months ended June 30, 2006

-- prepared in accordance with U.S. GAAP prepared in accordance with U.S. GAAP --

Toyota Motor CorporationToyota Motor CorporationAugust 4, 2006August 4, 2006

2This 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.

Cautionary Statement with Respect to Forward-Looking Statements

3Caution 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.

Takahiko Takahiko IjichiIjichi

Managing OfficerManaging Officer

5Consolidated Vehicle Sales

193

543550

747641

308256229

300272

0

500

1,000

1,500

2,000

'05/4-6 '06/4-6

OtherAsiaEuropeN.AmericaJapan

- Figures in brackets show total retail vehicle sales of Toyota/Lexus, Daihatsu, and Hino vehicles

( thousands of vehicles )

(+143)

(+28)

(+52)

(+106)

(- 7)

(- 36)

[ 2,208 ]2,091[ 2,058 ]

1,948

6Consolidated Financial Summary (Q1)

Net RevenuesNet Revenues

FOREX RatesFOREX Rates

Net IncomeNet Income

Income before income Income before income taxes, minority interest taxes, minority interest and equity in earnings and equity in earnings of affiliated companiesof affiliated companies

Operating IncomeOperating Income

FY2007 Q1( ‘06/4-6 )

FY2007 Q1( ‘06/4-6 ) ChangesChangesFY2006 Q1

( ‘05/4-6 )FY2006 Q1( ‘05/4-6 )

5,638.15,638.1

512.4512.4

554.6554.6

371.5371.5115115yenyen

4,981.74,981.7

405.1405.1

421.8421.8

266.8266.8

656.4656.4

107.3107.3

132.8132.8

104.7104.7

13.2%13.2%

26.5%26.5%

31.5%31.5%

39.2%39.2%

144144yenyen108108yenyen135135yenyen

+7+7yenyen+9+9yenyen

$$€€

( billions of yen )

7

250

300

350

400

450

500

550

'05/4-6 '06/4-6

512.4(+107.3)

405.1

Increases in Expenses - 72.7R&D Expenses - 27.5Depreciation and

CAPEX related costs - 15.4Labor Costs -12.5Other Expenses - 17.3

Cost ReductionEfforts +20.0Marketing Efforts

+60.0

Effects of favorableFOREX Rates

+100.0

Contributing Factors to Consolidated Operating Income(billions of yen)

8Geographic Operating Income: Japan

- Increased domestic production in response to strong demand from overseas markets.- Increased market share by 1.5% year-on-year, while the market excluding mini-vehicles

has been shrinking.

197.5

293.0

408.9

281.1

188.4 707

571536550 543

1,2311,3161,177

1,0681,123

0

100

200

300

400

500

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

9Geographic Operating Income: North America

130.7 140.1137.8 127.899.3

604 643 668747

641

0

50

100

150

200

'05/4-6 '05/7-9 '05/10-12 '06/1-3 '06/4-6Operating Income ( billions of yen )Consolidated vehicle sales ( thousands of vehicles )

- Significantly increased vehicle sales by 106k units.- Strong sales of newly launched and compact models.

10Geographic Operating Income: Europe

23.4

36.5

27.226.6

16.7

242 246279

308

256

0

10

20

30

40

50

'05/4-6 '05/7-9 '05/10-12 '06/1-3 '06/4-6Operating Income ( billions of yen )Consolidated vehicle sales ( thousands of vehicles )

- Operating income grew significantly with sales of new models such as Yaris and RAV4.

11Geographic Operating Income: Asia

35.630.031.5

38.639.8

219 217 215193

229

0

10

20

30

40

50

'05/4-6 '05/7-9 '05/10-12 '06/1-3 '06/4-6Operating Income ( billions of yen )Consolidated vehicle sales ( thousands of vehicles )

- Decreased vehicle sales due to weakening markets in Indonesia and Taiwan. - Operating income remained high at 30 bil. yen.

12Geographic Operating Income: Others

19.215.916.314.7

17.0

284303 292 300

272

0

5

10

15

20

25

'05/4-6 '05/7-9 '05/10-12 '06/1-3 '06/4-6Operating Income ( billions of yen )Consolidated vehicle sales ( thousands of vehicles )

- Continued strong sales driven by IMV.

13

- Operating income increased following growth in the balance of captive finance.- Valuation gains from interest rate swaps: +6.6 bil. yen

43.847.7

25.5

46.839.7

0

10

20

30

40

50

'05/4-6 '05/7-9 '05/10-12 '06/1-3 '06/4-6Operating Income ( billions of yen )

Business Segment: Financial Services

14Equity in Earnings of Affiliated Companies

35.1

56.2

47.845.8

35.6

0

10

20

30

40

50

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

- Strong performance by group affiliates in Japan and Chinese joint ventures.

Equity in earnings of affiliated companies (billions of yen)

15Unconsolidated Financial Summary (Japan GAAP)

FY2007 Q1( ‘06/4-6 )

FY2007 Q1( ‘06/4-6 )

Net SalesNet Sales

Net IncomeNet Income

Operating Operating IncomeIncome

ChangesChangesFY2006 Q1( ‘05/4-6 )

FY2006 Q1( ‘05/4-6 )

( billions of yen )

2,698.52,698.5

246.5246.5

399.9399.9

277.6277.6

2,345.72,345.7

143.3143.3

217.9217.9

152.7152.7

352.8352.8

103.2103.2

182.0182.0

124.9124.9

15.0%15.0%

72.1%72.1%

83.6%83.6%

81.8%81.8%

Ordinary Ordinary IncomeIncome

16Contributing Factors to Unconsolidated Operating Income

100

150

200

250

'05/4-6 '06/4-6

246.5 (+103.2)

143.3

Increases in Expenses - 26.8R&D Expenses - 25.0Depreciation and

CAPEX related costs - 3.8Other Expenses +2.0

Cost ReductionEffort +10.0Marketing Effort

+40.0

Effects of favorableFOREX Rates

+80.0

(billions of yen)

17FY2007 Consolidated Prospects:Vehicle Sales

2,390

880850

2,364

2,556 2,800

1,023 1,160

1,1511,250

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

OtherAsiaEuropeN.AmericaJapan

7,9748,450

(+99)

(+137)

(+244)

(+26)

(+476)

(- 30)

( thousands of vehicles )

‘06/4-‘07/3Prospects

‘05/4-‘06/3Results

Figures in parentheses show year-on-year change projections

18FY2007 Consolidated Prospects

Net Revenue:Net Revenue:

FOREX Rate AssumptionsFOREX Rate Assumptions

Operating Income:Operating Income:

22,300.022,300.0

1,900.01,900.0

1,310.01,310.0

110 110 yenyen135 135 yenyen

$$€€

Net Income:Net Income:

(billions of yen)

19FY2007 Prospects: CAPEX, Depreciation, R&D

CapitalExpenditure

CapitalExpenditure

ConsolidatedConsolidated

EuropeEurope

North AmericaNorth America

JapanJapan

R&DExpenses

R&DExpenses

DepreciationExpenses

DepreciationExpenses

1,550.01,550.0

850.0850.0

330.0330.0

130.0130.0

930.0930.0

590.0590.0

165.0165.0

80.080.0

920.0920.0

OtherOther

AsiaAsia 135.0135.0 55.055.0

105.0105.0 40.040.0

(billions of yen)

Figures in parentheses show year-on-year change projections

(+ 21.2)

(- 0.5)

(+ 3.1)

(- 59.3)

(+ 59.7)

(+ 18.2)

(+ 38.6)

(+ 4.1)

(+ 7.0)

(+ 21.1)

(- 0.1)

(+ 6.5)

(+ 107.4)

20FY2007 Unconsolidated Prospects

11,000.011,000.0

880.0880.0

850.0850.0

(billions of yen)

Net Revenue:Net Revenue:

Operating Income:Operating Income:

Net Income:Net Income:

21

Sales (Overseas)Sales (Overseas)ExportsExportsSales (Japan)Sales (Japan)

Housing SalesHousing Sales

ProductionProductionJapanJapan

OverseasOverseasTotalTotal

FY2007 Operation Prospects (Toyota/Lexus)

1,7801,7802,3502,3506,2506,250

1,7691,7692,1262,1265,6645,664

5,0005,000 4,6934,693

4,1004,100 3,8633,8634,0604,060 3,7313,7318,1608,160 7,5947,594

FY2007( ‘06/4-‘07/3 )

FY2007( ‘06/4-‘07/3 )

FY2006( ‘05/4-‘06/3 )

FY2006( ‘05/4-‘06/3 )

(thousands of units) (thousands of units)

units units

FY2007 First Quarter Financial ResultsFY2007 First Quarter Financial ResultsThree months ended June 30, 2006Three months ended June 30, 2006

-- prepared in accordance with U.S. GAAP prepared in accordance with U.S. GAAP --

Toyota Motor CorporationToyota Motor CorporationAugust 4, 2006August 4, 2006