toyota motor corporation · 6 difference between us gaap & japan gaap on fy2003 q1 difference...
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Toyota Motor CorporationToyota Motor Corporation
FY2004 Q1 Financial ResultsFY2004 Q1 Financial Resultsthree months ended June 30, 2003three months ended June 30, 2003
-- prepared in accordance with US GAAP prepared in accordance with US GAAP --
August 5, 2003August 5, 2003
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Cautionary Statement with Respect to Forward-Looking StatementsThis release 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 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 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 affecting Toyota’s automotive operations, particularly laws, regulations and policies relating to environmental protection, vehicle emissions, vehicle fuel economy and vehicle safety, as well as changes in laws, regulations and government policies affecting 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 the “Operating and Financial Review and Prospects” and “Information on the Company” sections and elsewhere in Toyota’s annual report on Form 20-F, which is on file with the United States Securities and Exchange Commission.
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Caution concerning insider trading:Under Japanese securities laws and regulations (the "Regulations"), although there are 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, if twelve (12) hours have elapsed since a listed company, such as Toyota, disclosed such material information to at least two (2) media sources prescribed by the Regulations, such as certain newspaper companies and broadcasting companies, it is deemed that such material information was made public. Thus, investors aware of any material information contained in this document, if any, are recommended not to trade in Toyota's shares until the opening of Japanese stock markets on August 6, 2003 or to seek its own legal and other advice from its own professional advisers separately.
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I.I. Consolidated Consolidated Financial SummaryFinancial Summary
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! FY2003 Q1 figures recalculated in accordance with US GAAP for comparison
Notes toNotes toConsolidated Financial ResultsConsolidated Financial Results<1> US GAAP<1> US GAAP
<2> Scope of Consolidation and Affiliates<2> Scope of Consolidation and AffiliatesAccounted for under Equity MethodsAccounted for under Equity Methods
<JP GAAP>FY2004 Q1 FY2003 FY2003
ConsoliodatedSubsidiaries 521 500 581Affiliates Accounted forunder Equity Methods 55 58 51
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Difference between US GAAP & Difference between US GAAP & Japan GAAP on FY2003 Q1Japan GAAP on FY2003 Q1
-191.4-143.5Difference b/w US and Japan GAAP
422.2422.23,877.63,877.6US GAAPUS GAAP
18.4-29.3Others-162.5n/a
Gains on Return of the Substituted Portion of the Employee Pension Fund to the Government
-33.7n/aClassification of equity in earnings of affiliated companies
-13.6-114.2Scope of Consolidation
613.6613.64,021.14,021.1Japan GAAPJapan GAAP
Income before Taxes & Minority Income before Taxes & Minority Interest and Equity in Earnings Interest and Equity in Earnings
of Affiliated Companiesof Affiliated CompaniesNet Net
SalesSalesFY2003 Q1FY2003 Q1(April (April ’’0202--June June ’’02)02)
(billions of Yen)
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Consolidated Financial SummaryConsolidated Financial Summary
FY2004 FY2003(Apr-Jun '03) (Apr-Jun '02)(billions of yen) (billions of yen) (billions of yen) % (*)
Net Sales 4,092.9 3,877.6 215.3 5.6%
Operating Income 340.7 392.5 -51.8 -13.2%Income before Taxes& Minority Interest andEquity in Earnings ofAffiliated Companies 371.2 422.2 -51.0 -12.1%
Net Income 222.5 246.3 -23.8 -9.7%(*): percent changes year-on-year
Changes
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494
511
210
258
543
509
234
308
0
500
1,000
1,500
2,000
'02/4-6 '03/4-6
OtherEuropeN.AmericaJapan
Consolidated Vehicle SalesConsolidated Vehicle Sales
[1,561]1,473
[1,702]1,594 (+121)
(thousands of units)
(+49)
(-2)
(+24)
(+50)
Figures in brackets include number of units of Toyota, Daihatsu,and Hino vehicles sold by unconsolidated companies
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966
2429788
1,006
249126154
0
500
1,000
1,500
2,000
'02/4-6 '03/4-6
OtherEuropeN.AmericaJapan
Consolidated Vehicle ProductionConsolidated Vehicle Production
[1,540]1,393
[1,675]1,535 (+142)
(thousands of units)
(+40)
(+7)(+29)(+66)
Figures in brackets include number of units of Toyota, Daihatsu,and Hino vehicles manufactured by unconsolidated companies
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Contributions to Operating IncomeContributions to Operating Income
'02/4-6 '03/4-6
Negative SalesNegative Sales--side side Impacts Impacts ((--40.0)40.0)
Unfavorable Forex Unfavorable Forex Rate Rate ((--30.0)30.0)-8 yen / 1$ *+18 yen / 1 Euro *
Increase in Increase in Expenses Expenses ((--41.8)41.8)
Cost Reduction Cost Reduction Efforts Efforts (+60.0)(+60.0)
340.7 (340.7 (--51.8)51.8)
392.5392.5 (billions of yen)
*::Term medianTerm median forexforex ratesrates127 yen / 1$ 127 yen / 1$ --> 119 yen / 1$> 119 yen / 1$117 yen / 1 Euro 117 yen / 1 Euro --> 135 yen / 1 Euro> 135 yen / 1 Euro
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Geographical Segments: JapanGeographical Segments: Japan
%%--6.66.6--17.917.9
270.0270.0billions of yen
252.1252.1Operating Operating IncomeIncome
ChangesChangesFY2003 1QFY2003 1QFY2004 1QFY2004 1Q
WISHWISHRAUMRAUM
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Geographical Segments:Geographical Segments:North AmericaNorth America
Changeovers at North American PlantsChangeovers at North American Plants
Sienna:Kentucky (TMMK) -> Indiana (TMMI)(January ’03)
Solara:Canada (TMMC) -> Kentucky (TMMK)(July ’03)
RX330 (Lexus):Production commencement in Canada(TMMC) (Fall ’03)
CorollaCorolla
GX470GX470
%%--36.636.6--37.437.4
102.0102.0billions of yen
64.664.6Operating Operating IncomeIncome
ChangesChangesFY2003 1QFY2003 1QFY2004 1QFY2004 1Q
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-20
-10
0
10
20
30
CY99 01/1 01/3 01/5 01/7 01/9 01/11 02/1 02/3 02/5 02/7 02/9 02/11 03/1 03/3 03/5
0
50
100
150
200
250
US Sales Y-O-Y Incentive
Geographical Segments:Geographical Segments:North AmericaNorth America
Unit Sales / Y-O-Y change (%) Incentive Index (CY99 as 100)
Index setting CY99 figure as 100
Index setting CY99 figure as 100
CY00
Changes in Unit Sales and IncentiveChanges in Unit Sales and Incentive(%)
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AvensisAvensis
SedanSedan
WagonWagon
LiftbackLiftback
CorollaCorolla
Geographical Segments: EuropeGeographical Segments: Europe
%%23.123.11.11.1
5.05.0billions of yen
6.16.1Operating Operating IncomeIncome
ChangesChangesFY2003 1QFY2003 1QFY2004 1QFY2004 1Q
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HiluxHilux
ViosVios
Geographical Segments: OtherGeographical Segments: Other
%%43.443.46.26.2
14.314.3billions of yen
20.520.5Operating Operating IncomeIncome
ChangesChangesFY2003 1QFY2003 1QFY2004 1QFY2004 1Q
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Business Segments:Business Segments:Financial ServicesFinancial Services
• Decrease in evaluation loss from interest swap agreements entered into by US finance subsidiary 23.3 billion yen
• Increase in residual loss on leased vehicles and decrease in proceeds from sale of finance receivables for ABS -13.7 billion yen
Operating Income: 10.6 billion yen (+9.6 billion yen)
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Capital Expenditures, Capital Expenditures, Depreciation, R&DDepreciation, R&D
CapitalExpenditures
(billions of yen)
DepreciationExpenses
(billions of yen)
R&DExpenses
(billions of yen)
ConsolidatedTotal 180.9 180.1 148.1
Japan 93.1 113.3
North America 50.9 38.7
Europe 18.3 14.3
Other 18.6 13.8
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Other Income, etc.Other Income, etc.
Other Income: 30.5 billion yen (+0.8 billion yen)
Equity in earnings of affiliated companies:21.1 billion yen (+13.0 billion yen)
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II.II. Unconsolidated Unconsolidated Financial SummaryFinancial Summary
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Unconsolidated Results SummaryUnconsolidated Results Summary(Japan GAAP)(Japan GAAP)
FY2004 Q1 FY2003 Q1(Apr-Jun '03) (Apr-Jun '02)(billions of yen) (billions of yen) (billions of yen) % (*)
Net Sales 2,151.3 2,081.5 69.8 3.4%
Operating Income 215.5 244.2 -28.7 -11.8%
Ordinary Income 264.5 285.5 -21.0 -7.4%
Net Income 171.1 263.0 -91.9 -35.0%(*): percent changes Year-on-year
Changes
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Share RepurchaseShare Repurchase
Authorized amount to be repurchasedAuthorized amount to be repurchasedNumber of Shares: Number of Shares: up to 150 million sharesup to 150 million sharesAggregate Amount:Aggregate Amount: up to 400 billion yenup to 400 billion yen
(Annual General Shareholders’ Meeting ’03 through ’04)
Shares RepurchasedShares RepurchasedNumber of Shares:Number of Shares: 169.97 million shares169.97 million sharesAggregate Amount:Aggregate Amount: 499.2 billion yen499.2 billion yen
(Authorized amount: up to 170 million sharesup to 600 billion yen )
(Annual General Shareholders’ Meeting ’02 through ’03)
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III.III. Prospects for FY2004Prospects for FY2004
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Prospects forProspects forConsolidated Unit SalesConsolidated Unit Sales
FY2003August May Results
(thousands of units) (thousands of units) (thousands of units)
(+297) (+147)
Consolidated Total 6,410 6,260 6,113 (+72) (+62)
(Japan) 2,290 2,280 2,218(+48) (+18)
(North America) 2,030 2,000 1,982(+54) (+24)
(Europe) 830 800 776(+123) (+43)
(Other) 1,260 1,180 1,137
FY2004 Prospects as of
* Figures in parenthesis indicate changes from the FY2003 results
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Prospects for Capital Prospects for Capital Expenditures, Depreciation, R&DExpenditures, Depreciation, R&D
FY2003August May Results
(billions of yen) (billions of yen) (billions of yen)
CapitalExpenditures 920.0 870.0 999.0 DepreciationExpenses 770.0 730.0 684.1
R&D Expenses 690.0 690.0 668.4
FY2004 Prospects as of
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ToyotaToyota’’s Operating Prospectss Operating Prospectsexcluding Daihatsu and Hinoexcluding Daihatsu and Hino
FY2003August May Results(03/4-04/3) (03/4-04/3) (02/4-03/3)
thousands of units thousands of units thousands of units
Automotive Japan 3,410 3,330 3,513Production Overseas 2,660 2,450 2,215 Sales (Japan) 1,760 1,750 1,724 Exports 1,710 1,650 1,835 Sales (Overseas) 4,150 4,100 3,927
units units units
Housing Sales 3,800 3,600 3,577
FY2004 Prospects as of
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FY2004 Unconsolidated ProspectsFY2004 Unconsolidated Prospectsfor the First Half for the First Half (Apr.(Apr.--Sep. Sep. ’’03)03)
(Japan GAAP)(Japan GAAP)
August May(billions of yen) (billions of yen)
Net Sales 4,200.0 4,100.0Operating Income 400.0 300.0Ordinary Income 430.0 330.0Net Income 280.0 210.0Exchange Rate 117 yen / 1$ 115 yen / 1$
(assumed term medien forex rate) 132 yen / 1Euro 125 yen / 1Euro
FY2004 1H Prospects as of
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1992 2000 2001 2002 2003 plan 2005prospects
0
400
800
1,200Global Sales *1Operating Income
Percentage of Overseas ProductionPercentage of Overseas Production
Growth and EfficiencyGrowth and Efficiency(thousands of units) (billions of yen)
*2
16% 32% 34% 38%*3
4,000
5,000
6,000
*1: Number of units of Toyota, Daihatsu, and Hino brand vehicles sold*2: Operating Income for 1992 (FY ended June ’93) is stated in Japan GAAP*3: Overseas Production / Total Production (Toyota, Daihatsu, Hino)
Toyota Motor CorporationToyota Motor Corporation
FY2004 1Q Financial ResultsFY2004 1Q Financial Resultsthree months ended June 30, 2003three months ended June 30, 2003
-- prepared in accordance with US GAAP prepared in accordance with US GAAP --
August 5, 2003August 5, 2003