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