FY2006 Financial Results FY2006 Financial Results - prepared in - - PowerPoint PPT Presentation
FY2006 Financial Results FY2006 Financial Results - prepared in accordance with U.S. GAAP prepared in accordance with U.S. GAAP - - - Toyota Motor Corporation May 10, 2006 Cautionary Statement with Respect to Forward-Looking Statements This
prepared in accordance with U.S. GAAP -
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Cautionary Statement with Respect to Forward-Looking Statements
This 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
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
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.
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Caution 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.
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5
880 2,364 2,381 2,556 2,271 1,023 979 833 1,151 944
2,000 4,000 6,000 8,000
'04.4-'05.3 '05.4-'06.3
Japan N.America Europe Asia Other
(-17) (+44) (+47) (+207) [7,637] 7,408 [8,252] 7,974
Consolidated Vehicle Sales
(+285)
(+566)
(thousands of vehicles) Figures in brackets show total retail unit sales of Toyota, Daihatsu, and Hino vehicles. Figures in parentheses show year-on-year changes
6
Operating Income by Quarter
(billions of yen)
(17.2% up) (12.3% up) (13.4% up)
Year-on-year Change
805.9 866.2 1,068.9 809.4 200 400 600 800 1,000
1st Half 2nd Half
04.4-05.3 05.4-06.3
Consolidated Net Revenue:
21,036.9 billion yen
Consolidated Operating Income:
1,878.3 billion yen
Consolidated Net Income:
1,372.1 billion yen
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Strength of Products, Technologies and Cost Reduction
Improve Quality Improve Quality Improve Quality
Resources (Finance, Human Resources) Resources (Finance, Human Resources)
Every Area Segment & Product Category Every Area Segment & Product Category
Opportunity Opportunity
Risk Risk
Avoid or absorb
Take-in
Stable & Long Stable & Long-
term Growth
Capabilities of Production and Supply Marketing Capability
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Taking in market growth through improvements of Tech. and products Creating and developing a new market through HV system Increasing production capacity to respond flexibly to global demand growth Building brand in the global premium vehicle market
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<05.4-06.3> Strength of Products & Tech.
Toyota products won customers’ trust through responding to market needs
Tacoma (NA) Avalon (NA)
Use marketing expenses efficiently, and increase sales by new products Lead to profit growth Increased global sales by strength of products (Strength of Product) = Quality, Performance, Fuel Economy, Safety Tech. Environmentally Friendly Features, Price, Design, etc.
Vitz / Yaris (Japan-NA-Europe) RAV4(Japan-NA-Europe) Fortuner (Asia -Other Region) Mark X / REIZ (Japan-China)
<Major New Products>
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Reduce Cost (weight, volume)
<05.4-06.3> Strength of Products & Tech.
Hybrid System : Improve power performance & Reduce cost
Sales Units of Sales Units of HVs HVs 263K units (YOY change:120K units up) 263K units (YOY change:120K units up)
Achieved 600K units of cumulative sales
’97~ ’03~
Aim 1 million of annual sales units as a market leader
World 1st Production Model
Introductory Phase
THS* THS II (Plan to achieve the target in early 2010s)
*THS： Toyota Hybrid System
Growing Phase Spreading Phase Improve Performance & Fuel Economy
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<05.4-06.3> Production Capability
Increased production capacity in Japan : To respond quickly and flexibly to growing demands in globe
Basic Policy : Manufacture where the demand is (Increase production capacity outside Japan) 04 07 Overseas
Japan
08 06 05 Texas
200k
TPCA
100k
Russia
50k
Tianjin 2nd Plant
100k
UK
(expansion)
+65k Thailand 3rd Plant 100k Guangzhou 100k
Thailand
(expansion)
+90k
Canada 2nd Plant
150k Tianjin 3rd Plant 200k
France
(expansion)
+30k
Mexico
(expansion)
+20k
Mexico
30k
Tianjin 1st Plant
(expansion)
+30k
Turkey France
(expansion)
+50k +50k
Demand exceeding the plan
Quick start-
up
Flexibility in response to demand change demand change
Efficient investment
Kyushu Kyushu
200k 200k
Iwate Iwate
100k 100k
Increase in overseas Increase in overseas production capacity production capacity Equivalence to domestic production in quality and investment efficiency
SIA OEM
100k
Increase in domestic Increase in domestic production capacity production capacity (3.5mil (3.5mil► ►3.8mil) 3.8mil)
(expansion)
+90k
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<05.4-06.3> Marketing & Sales Capability
Development of Global Premium Brand ‘Lexus’
Japan： ： New Launch New Launch
Europe： ： Rebuilding Rebuilding
China ： ：
Lexus’s Flag Ship, New ‘LS’ Debut in 2006 Lexus’s Flag Ship, New ‘LS’ Debut in 2006 Global Sales Units 411k units/year Global Sales Units 411k units/year (YOY Change; 72k up)
(YOY Change; 72k up)
Fiscal Year 2006 : ‘Dawn for Global Lexus’
05.8-06.3 17k units(7 months) Established brand image in a short period Outlets: 142 (05.8)->151(06.3) 05.8-06.3 17k units(7 months) Established brand image in a short period Outlets: 142 (05.8)->151(06.3) 05.4-06.3 39k units Expanded Lexus exclusive network Outlets: 72 (05.3)->93(06.3) 05.4-06.3 39k units Expanded Lexus exclusive network Outlets: 72 (05.3)->93(06.3) 05.4-06.3 6k units Built Lexus outlets Outlets: 10(06.3) 05.4-06.3 6k units Built Lexus outlets Outlets: 10(06.3) Maintained exceeding sales units: 05.4-06.3 322k units(YOY change; 34k up) Maintained exceeding sales units: 05.4-06.3 322k units(YOY change; 34k up)
Building Building Foundation Foundation
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Global Core Models Innovative Cost Reduction Efficient Start-up of New Overseas Plants
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<06.4-07.3> Strength of Products & Tech. Develop Appealing ‘Global Core Models’
34% 34% of Consolidated Sales occupied by
Global Core Models (05.4-06.3) Development Concept Development Concept “ “Global Best, Local Best Global Best, Local Best” ”
Development of global common platform and key components Adoption of local market needs in design and upper body development
(# of unit sales based on global sales in the year 05.4-06.3)
Develop products efficiently and globally Create products to satisfy customers’ needs
Vitz Vitz-
Yaris 432k unit sales /year 05 Full Model Change Camry Camry 536k unit sales /year 06 Full Model Change Corolla Corolla 1,207k unit sales /year IMV IMV 537k unit sales /year 04 Launch
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<06.4-07.3> Cost Reduction Innovative Cost Reduction (=VI Activities)
Start with advanced development concept execute cost reduction in system-by- system
Aim to exceed Aim to exceed CCC21 CCC21 in terms of speed, scale and reducing amounts in terms of speed, scale and reducing amounts
CCC21 CCC21
Activity
Realization
Reduction
VI Activities VI Activities ’00~ ’05~ ’07~ ’00~
4 Functions
Cost Reduction in ECU system ► ► Unite separate ECUs
Reclassify units with review the functions
*ECU： Electronic Control Unit
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<06.4-07.3> Production Capability Efficient Start-up of Overseas New Plants
Texas, USA (October)
Guangzhou, China (May) To complete start-up programs in N.A area To achieve full production with high quality by newest GBL
06.4-07.3 Overseas Production Plan ; 329k units up YOY*
TMMTX (Texas) TMMI (Indiana)
Support
(Kentucky)
Training
Expand efficient production line globally <Tundra --- 200k /year> <Camry --- 100k /year> Strengthen self reliance of
*GBL： Global new Body Line
*Toyota/Lexus
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Strategy of Global Premium Brand
Cost Reduction (VI Activities) Global Core Models Global Sales Growth by Strength
Increase of Global Production Capacity Hybrid Strategy
09.3
Expectation of Contribution to Profit
10.3 05.3 08.3 07.3 06.3
Road Map towards Profit Realization
Ended in
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04.4-05.3 05.4-06.3 06.4-07.3 07.4-08.3 08.4-09.3
efforts and securing profits
efforts and securing profits
‘Growth of Sales/Revenue’ X ‘High Level of Operating Margin’ ‘ ‘Growth of Sales/Revenue Growth of Sales/Revenue’ ’ X ‘ ‘High Level of Operating Margin High Level of Operating Margin’ ’
Increasing revenue Increasing Profit
X
High Level (approx. 9%)
Op. Margin Revenue Op. Margin
18.55 21.03 1.87 1.67 Actual Forecast (trillions of yen)
Margin
＝
Actual Forecast Forecast
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850 2,390 2,364 2,800 2,556 1,160 1,023 880 1,250 1,151
2,000 4,000 6,000 8,000
'05.4-'06.3 '06.4-'07.3
Japan NA Europe Asia Other Region
(+26) (+137) (-30) (+99) 7,974 8,450 (+476)
(thousands of unit)
(+244)
06.4 06.4-
07.3 Consolidated Prospects Consolidated Prospects Vehicle Unit Sales Vehicle Unit Sales
Figures in parentheses show year-on-year changes
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06.4 06.4-
07.3 Consolidated Prospects Consolidated Prospects
Forex Rate 110 yen/1$ 135 yen/1Euro
Consolidated Net Revenue: Consolidated Operating Income: Consolidated Net Income:
22,300 billion yen 1,900 billion yen 1,310 billion yen
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consolidated basis
supply imbalance
22
24 25 28 36 45
65
35 25 20 11 11 14 16 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 Annual Mid-term
Total Amount of Payout :
292.1 billion yen
Consolidated Payout Ratio :
21.3% (YOY change 3.0% up)
Total Amount of Payout :
292.1 billion yen
Consolidated Payout Ratio :
21.3% (YOY change 3.0% up)
90 90 yen
yen
(yen)
(YOY change: 25 yen up)
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Enabling Amount (maximum limitation)
200 billion yen / 30 million shares
Enabling Amount (maximum limitation)
200 billion yen / 30 million shares
1,779.6 2,045.8 2,179.4 1,380.7 927.3 649.8 100.0 206.4 340.7 386.2
96.4- 97.3 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
Share Buyback
<Cumulative Share Buyback in the past ten years> (billions of yen)
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FY2006 FY2006 (05.4 (05.4-
06.3) FY2005 FY2005 (04.4 (04.4-
05.3) Changes Changes
Consolidated Financial Summary
17.2 200.9 1,171.2 1,372.1 N e t I n c o m e
+5yen/1$ 108yen/1$ 113yen/1$
F o r e x R a t e
+3yen/1Euro 135yen/1Euro 138yen/1Euro
19.0 332.7 1,754.6
(*2)2,087.3
Income before income taxes, minority interest and equity in earnings
12.3 206.2 1,672.1 1,878.3 Operating Income 13.4 2,485.4 18,551.5 21,036.9 N e t R e v e n u e s
%(*1) (billions of yen) (billions of yen) (billions of yen)
*2 : Other Income included a 143.3 billion yen evaluation gain resulting from the merger of the Mitsubishi-Tokyo Financial Group and the UFJ Holdings *1 : percentage changes year-on-year
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1,100 1,200 1,300 1,400 1,500 1,600 1,700 1,800
'04.4-'05.3 '05.4-'06.3
1,878.3
(206.2)
1,672.1
Contributing Factors to Consolidated Operating Income
(billions of yen)
Increases in Expenses -307.3
R&D Expenses -49.6 Depreciation and CAPEX related costs -64.3 Labor costs -95.1 Other expenses -98.3
Special Factor -156.5
Changes in the accounting of depreciation -46.3 Valuation losses from interest rate swaps -45.8 Prior-year adjustment -17.2 Decrease in DAIKO HENJO -47.2
Marketing Efforts
(volume, mix, etc.)
+240.0 Effects of favorable Forex Rates +300.0 Cost Reduction Efforts +130.0
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Geographic Operating Income: Japan
237.6 188.4 197.5 408.9 253.0 281.1 237.3 259.3 538 568 573 550 536 571 707 702 0.0 100.0 200.0 300.0 400.0
'04.4-6 '04.7-9 '04.10-12 '05.1-3 '05.4-6 '05.7-9 '05.10-12 '06.1-3
Operating Income(billions of yen) Consolidated vehicle sales(thousand of vehicles)
capacity and contributed to profit increase
(billions of yen)
04.4-05.3
987.2
05.4-06.3
1,075.9
27
129.8 114.9 127.8 75.0 137.8 130.7 127.8 99.3 604 668 643 641 569 576 554 572
50 100 150
'04.4-6 '04.7-9 '04.10-12 '05.1-3 '05.4-6 '05.7-9 '05.10-12 '06.1-3
Operating Income (billions of yen) Consolidated vehicle sales (thousands of vehicles)
Geographic Operating Income: North America
(billions of yen)
new products and compact vehicles 04.4-05.3
447.5
05.4-06.3
495.6
28
30.9 26.5 15.7 16.7 23.4 26.6 27.2 35.4 279 246 242 256 254 249 229 247
10 20 30 40
'04.4-6 '04.7-9 '04.10-12 '05.1-3 '05.4-6 '05.7-9 '05.10-12 '06.1-3
Operating Income (billions of yen) Consolidated vehicle sales (thousands of vehicles)
Geographic Operating Income: Europe
(billions of yen)
products, with overwhelming investment for production expansion
04.4-05.3
108.5
05.4-06.3
93.9
29
24.4 19.1 25.1 25.2 35.6 38.6 31.5 39.8 215 217 219 229 252 195 184 202
10 20 30 40 50
'04.4-6 '04.7-9 '04.10-12 '05.1-3 '05.4-6 '05.7-9 '05.10-12 '06.1-3
Operating Income (billions of yen) Consolidated vehicle sales (thousand of vehicles)
Geographic Operating Income: Asia
(billions of yen)
04.4-05.3
93.8
05.4-06.3
145.5
30
13.3 14.1 8.4 11.6 17.0 19.2 14.7 16.3 292 303 284 272 225 246 241 232
5 10 15 20
'04.4-6 '04.7-9 '04.10-12 '05.1-3 '05.4-6 '05.7-9 '05.10-12 '06.1-3
Operating Income (billions of yen) Consolidated vehicle sales (thousand of vehicles)
Geographic Operating Income: Other (Africa, Oceania, South and Central America, etc.)
04.4-05.3
47.4
05.4-06.3
67.2
(billions of yen)
31
46.2 56.5 58.7 39.4 39.7 43.8 46.8 25.5
10 20 30 40 50
'04.4-6 '04.7-9 '04.10-12 '05.1-3 '05.4-6 '05.7-9 '05.10-12 '06.1-3
Operating Income (billions of yen)
Business Segment: Financial Services
(billions of yen)
04.4-05.3
200.8
05.4-06.3
155.8
32
34.7 24.1 39.3 41.3 35.6 35.1 45.8 47.8
10 20 30 40
'04.4-6 '04.7-9 '04.10-12 '05.1-3 '05.4-6 '05.7-9 '05.10-12 '06.1-3
Equity in Earnings of Affiliated Companies
(billions of yen)
04.4-05.3
139.4
05.4-06.3
164.3
and Chinese joint venture companies.
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FY2006 Consolidated CAPEX, Depreciation, R&D
Capital Capital Expenditure Expenditure
(billions of yen) (billions of yen)
Depreciation Depreciation Expenses Expenses
(billions of yen) (billions of yen)
R&D R&D Expenses Expenses
(billions of yen) (billions of yen)
(+ 9.8)
48.0
( - 3.0)
131.9 Asia 33.5 75.9 165.1 568.9 891.4
(+ 14.6) (+ 57.8) (+116.6) (+234.3) (+441.6) (+ 80.5)
909.3 Japan
(+ 8.6)
86.8 Other
(+ 4.6)
130.5 Europe
(+ 12.1)
270.3 North America
(+57.5)
812.6
(+115.6)
1,528.8 Consolidated
Figures in parentheses show year-on-year changes
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FY2006 FY2006 (05.4 (05.4-
06.3) FY2005 FY2005 (04.4 (04.4-
05.3) Changes Changes
Unconsolidated Financial Summary (Japan GAAP) 44.7 236.6 529.3 765.9 Net Income 29.0 248.5 856.2 1,104.7 Ordinary Income 20.9 146.6 701.3 847.9 Operating Income 10.6 973.5 9,218.3 10,191.8 Net Sales
%(*) (billions of yen) (billions of yen) (billions of yen)
* percentage changes year-on-year
35
450 550 650 750 850
'04.4-'05.3 '05.4-'06.3
847.9
(+146.6)
701.3 Contributing Factors to Unconsolidated Income
(billions of yen)
Increases in Expenses -157.1
R&D Expenses -38.6 Depreciation and CAPEX related costs -17.1 Labor Costs -30.6 Other Expenses -70.8
Marketing Effort
(volume, mix, etc.)
+40.0 Cost Reduction Effort +60.0 Effects of favorable Forex Rates +250.0 Special Factor -46.3
Changes in accounting of depreciation
36
FY2007 FY2007 (06.4 (06.4-
07.3) FY2006 FY2006 (05.4 (05.4-
06.3) Changes Changes
FY2007 Consolidated Prospects: Financial Summary
1,372.1 1,310.0 Net Income
113yen/1$ 110yen/1$
Forex Rate
138yen/1Euro 135yen/1Euro
(*2)2,087.3
1,970.0
Income before income taxes, minority interest and equity in earnings
1.2 21.7 1,878.3 1,900.0 Operating Income 6.0 1,263.1 21,036.9 22,300.0 Net Revenues
%(*1) (billions of yen) (billions of yen) (billions of yen)
*2 : Other Income included a 143.3 billion yen evaluation gain resulting from the merger of the Mitsubishi-Tokyo Financial Group and the UFJ Holdings *1 : percentage changes year-on-year
37
FY2007 Consolidated Prospects: CAPEX, Depreciation, R&D
Capital Capital Expenditure Expenditure
(billions of yen) (billions of yen)
Depreciation Depreciation Expenses Expenses
(billions of yen) (billions of yen)
R&D R&D Expenses Expenses
(billions of yen) (billions of yen)
( + 7.0)
55.0
( + 3.1)
135.0 Asia 40.0 80.0 165.0 590.0 930.0
(+ 18.2) ( - 0.5) (+ 59.7) ( - 59.3) (+ 21.2) (+ 21.1)
850.0 Japan
( + 6.5)
105.0 Other
( + 4.1)
130.0 Europe
( - 0.1)
330.0 North America
(+107.4)
920.0
(+ 38.6)
1,550.0 Consolidated
Figures in parentheses show year-on-year change projections
38
FY2007 FY2007 (06.4 (06.4-
07.3) FY2006 FY2006 (05.4 (05.4-
06.3) Changes Changes
FY2007 Unconsolidated Prospects:
Financial Summary (Japan GAAP)
11.0 84.1 765.9 850.0 Net Income 11.3 125.3 1,104.7 1,230.0 Ordinary Income 3.8 32.1 847.9 880.0 Operating Income 7.9 808.2 10,191.8 11,000.0 Net Sales
%(*) (billions of yen) (billions of yen) (billions of yen)
* percentage changes year-on-year
39
FY2007 Toyota’s Operations Prospects
FY2007 FY2007 (06.4 (06.4-
07.3) FY2006 FY2006 (05.4 (05.4-
06.3)
3,863 Automotive Production Japan 4,100 2,126 2,350 Exports 5,000 6,250 1,780 4,060
thousand of units
3,731 Overseas 4,693 Housing Sales 5,664 Sales (Overseas) 1,769 Sales (Japan)
thousand of units
<Reference Material>
units units
prepared in accordance with U.S. GAAP -