fy2007 semi-annual financial results - toyota · 2019. 2. 20. · disclosure network) information...

FY2007 SemiFY2007 Semi--Annual Annual Financial ResultsFinancial Results

Toyota Motor CorporationToyota Motor CorporationNovember 7, 2006November 7, 2006

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

2This 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.

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.

Takeshi SuzukiTakeshi Suzuki

Senior Managing DirectorSenior Managing Director

5Consolidated Vehicle Sales

382

1,086 1,073

1,245 1,464

498589

448

556637

0

1,000

2,000

3,000

4,000

'05/4-9 '06/4-9

Other

Asia

Europe

N. America

Japan

4,145(thousands of vehicles)

( + 312)

( + 81)

( + 91)

( + 219)

( - 13)

( - 66)

3,833

Figures in parenthesis show year-on-year change

6Consolidated Financial Summary (1H)

FY2007 1H（’06/4-9）

FY2007 1H（’06/4-9）

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

ChangeChangeFY2006 1H（’05/4-9）

FY2006 1H（’05/4-9）

11,471.811,471.8

1,093.41,093.4

1,166.11,166.1

777.2777.2115 yen115 yen

146 yen146 yen

9,953.19,953.1

809.4809.4

855.9855.9

570.5570.5110 yen110 yen

136 yen136 yen

1,518.71,518.7

284.0284.0

310.2310.2

206.7206.7+5 yen+5 yen

+10 yen+10 yen

15.3%15.3%

35.1%35.1%

36.2%36.2%

36.2%36.2%

(billions of yen,%)

$$€€

7

600

700

800

900

1,000

1,100

'05/4-9 '06/4-9

Contributing Factors to Consolidated Operating Income

1,093.4(+284.0)

809.4

(billions of yen) Cost Reduction Efforts

+40.0Marketing

Efforts+150.0

Effects of favorable

FOREX rates+190.0

Increase in ExpensesR&D ExpensesDepreciation andCAPEX related costs

Labor CostsExpenses related tobusiness expansion

-96.0-20.1

-33.6-25.9

-16.4

8Geographic Operating Income: Japan

・ High level of production volume in response to strong demand ・ Market share excluding mini-vehicles increased to 44.7%・ Product mix improvement

690.0 684.4

385.9

1,2781,086 1,073

2,4502,493

2,191

0

200

400

600

800

'05/4-9 '05/10-'06/3 '06/4-9

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

9Geographic Operating Income: North America

227.1 250.5268.5

1,4641,3111,245

0

100

200

300

400

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

・ Very strong sales continue - brisk demand for new models & compact cars・ Finance business - 18.1 billion yen non-cash valuation loss on interest rate swaps

10Geographic Operating Income: Europe

・ Increasing profit due to strong sales of RAV4 & Yaris

53.866.0

40.1

589525498

0

20

40

60

80


11Geographic Operating Income: Asia

・ Decreased sales due to weak market in Indonesia and Taiwan・ Strong sales of IMV exports to regions outside of Asia

70.161.3

75.4382

432448

0

20

40

60

80


12Geographic Operating Income: Others

・ Continued strong sales driven by IMV

31.036.136.2

595 637556

0

10

20

30

40

50


13Business Segment: Financial Services

・ Profit has improved due to growth in captive finance balance・ 4.8 billion yen non-cash valuation loss on interest rate swaps

79.983.572.3

0

20

40

60

80

100

120

'05/4-9 '05/10-'06/3 '06/4-9

Operating Income (billions of yen)

14Equity Earnings of Affiliated Companies

・ Strong performance led by Toyota group companies in Japan

93.6

70.7

89.4

0

20

40

60

80

100

'05/4-9 '05/10-'06/3 '06/4-9Equity earnings of affiliated companies (billions of yen)

15Unconsolidated Financial Summary (Japan GAAP)

5,470.35,470.3

571.0571.0

778.2778.2

525.8525.8

4,664.04,664.0

297.6297.6

416.6416.6

283.6283.6

806.3806.3

273.4273.4

361.6361.6

242.2242.2

17.3%17.3%

91.8%91.8%

86.8%86.8%

85.4%85.4%

FY2007 1H(’06/4-9)

FY2007 1H(’06/4-9) ChangeChangeFY2006 1H

(’05/4-9)FY2006 1H

(’05/4-9)




Ordinary IncomeOrdinary Income

(billions of yen,%)

16

200

300

400

500

600

'05/4-9 '06/4-9

571.0 (+273.4)

297.6

(billions of yen) Cost Reduction Efforts+30.0

Marketing Efforts +90.0

Effects of favorable

FOREX Rates+160.0

Increase in Expenses

R&D ExpensesDepreciation andCAPEX related costs

Other Expenses

-6.6-18.1

-8.1+19.6

Contributing Factors to Unconsolidated Operating Income

17Shareholder Return – Interim Dividend

24 25 2836

45

90

6550

352520

11 11 14 1699/4-00/3 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

Annual Interim

Interim Dividend: 50 yen per share(change: +15 yen)

(yen)

Total Amount of Payout: 160.8 billion yenConsolidated Payout Ratio

: 20.7% (change: +0.7%)

18Shareholder Return – Repurchase of Shares

106.4134.3

45.4

263.6 277.5

453.5398.8

266.2

133.6162.5

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 06/4-06/9

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

Enabling Amount (maximum limitation)

200 billion yen/30 million sharesCurrent Share buyback

150 billion yen/20 million shares

Global Core Model, CorollaGlobal Core Model, Corolla

Lexus LS Global LaunchLexus LS Global Launch

2HFY2007 Key Activities

All New Tundra All New Tundra

Guangzhou plant Guangzhou plant –– 2 Shift Operation2 Shift Operation

20Global Core Model, Corolla

Efficient roll out of Corolla worldwide starting with Japan

Corolla AXIO Corolla Fielder

Product Development Production Marketing

21Lexus LS Global Launch

Sales are off to a good start in regions where LS has launched

Oceania

Latin America

Asia

Europe

N. America

Japan

’07/4-6’07/1-3’06/10-12’06/7-9Time Period

Region

LS

LS-HV

22All New Tundra

Targeted marketing strategy to penetrate full-size pickup truck segment

All New Tundra

TMMTX start-up(Texas)’06/11

TMMI change-over(Indiana)’07/1

23Guangzhou plant – 2 Shift Operation

Progress in operational infrastructure

Vios

2002

Corolla

Land Cruiser

Camry

Prius

Reiz

Crown

Prado

Coaster

2006200520042003Manufacturing

Sites

SichuanCoaster & Prado

Tianjin #1Vios & Corolla

ChangchunLand Cruiser & Prius

Tianjin #2Crown & ReizFAW alliance

Guangzhou Motors alliance

Guangzhou (100 – 200K) Camry

24Consolidated Prospects: Vehicle Sales

2,390

2,800

1,160770 850

1,250

2,3602,364

2,8702,556

1,2101,023880

1,2601,151

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

'05/4 - '06/3 Actual '06/4 - '07/3Prospects(rev ised)

'06/4 - '07/3Prospects(original)

OtherAsiaEuropeN. AmericaJapan

8,470(thousands of units)

( + 496)

( + 109)

( + 187)

( + 314)

( - 4)

( - 110)

7,974

Figures in parentheses represent year-on-year change

8,450

25FY2007 Consolidated Prospects(billions of yen,%)

23,200.023,200.0

2,200.02,200.0

2,300.02,300.0

1,550.01,550.0115 yen115 yen

145 yen145 yen

21,036.921,036.9

1,878.31,878.3

2,087.32,087.3

1,372.11,372.1113 yen113 yen

138 yen138 yen

2,163.12,163.1

321.7321.7

212.7212.7

177.9177.9+2 yen+2 yen

+7 yen+7 yen

10.3%10.3%

17.1%17.1%

10.2%10.2%

13.0%13.0%


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


FY2007（’06/4-’07/3）

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

（’05/4-’06/3）FY2006

（’05/4-’06/3）

$$€€

26FY2007 Consolidated Prospects: CAPEX, Depreciation, R&D

Capital Expenditure

Capital Expenditure

N.AmericaN.America

JapanJapan

R&D ExpensesR&D ExpensesDepreciationExpenses

DepreciationExpenses

EuropeEurope

AsiaAsia

OthersOthers

ConsolidatedConsolidated 1,550.01,550.0

850.0850.0

330.0330.0

130.0130.0

135.0135.0

105.0105.0

( + 21.2)

( - 0.5)

( + 3.1)

( - 59.3)

( + 59.7)

( + 18.2)

930.0930.0

590.0590.0

165.0165.0

80.080.0

55.055.0

40.040.0

( + 38.6)

( + 4.1)

( + 7.0)

( + 21.1)

( - 0.1)

( + 6.5)

890.0890.0 ( + 77.4)

Figures in parentheses represent year-on-year change

(billions of yen,%)

27FY2007 Unconsolidated Prospects (Japan GAAP)

11,400.011,400.0

1,130.01,130.0

1,520.01,520.0

1,030.01,030.0

10,191.810,191.8

847.9847.9

1,104.71,104.7

765.9765.9

1,208.21,208.2

282.1282.1

415.3415.3

264.1264.1

11.8%11.8%

33.3%33.3%

37.6%37.6%

34.5%34.5%

FY2007(’06/4-’07/3)

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

(’05/4-’06/3)FY2006

(’05/4-’06/3)




Ordinary IncomeOrdinary Income

(billions of yen,%)

28FY2007 Operations Prospects

Sales Sales (Overseas)(Overseas)

ExportsExports

Sales Sales (Japan)(Japan) 1,7501,7502,5202,5206,3206,320

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

Automotive Automotive ProductionProduction

JapanJapanOverseasOverseas

Housing SalesHousing Sales 5,0005,000 4,6934,693

4,2404,240 3,8633,8633,9203,920 3,7313,731

(Thousands of units)

units units

8,1608,160 7,5947,594TotalTotal

FY2007(’06/4-’07/3)

FY2007(’06/4-’07/3)

FY2006(’05/4-’06/3)

FY2006(’05/4-’06/3)(Thousands of units)

FY2007 SemiFY2007 Semi--Annual Annual Financial ResultsFinancial Results

Toyota Motor CorporationToyota Motor CorporationNovember 7, 2006November 7, 2006

fy2007 semi-annual financial results - toyota · 2019. 2. 20. · disclosure network) information...

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