[PPT] - FY2007 Financial Results FY2007 Financial Results - prepared in PowerPoint Presentation

SLIDE 1

Toyota Motor Corporation Toyota Motor Corporation May 9, 2007 May 9, 2007

FY2007 Financial Results FY2007 Financial Results

prepared in accordance with U.S. GAAP -

SLIDE 2

2

Cautionary Statement with Respect to Forward-Looking Statements

This 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

perates; (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.

SLIDE 3

3

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.

SLIDE 4

Takeshi Suzuki Takeshi Suzuki

Senior Managing Director Senior Managing Director

SLIDE 5

5

Consolidated Vehicle Sales

789 2,273 2,364 2,942 2,556 1,224 1,023 880 1,296 1,151

2,000 4,000 6,000 8,000 '05/4-'06/3 '06/4-'07/3

Other Asia Europe

N. America

Japan

(thousands of vehicles)

7,974

Figures in parenthesis represent year-on-year change

8,524

(+ 550) (+ 145) (+ 201) (+ 386) (- 91) (- 91)

SLIDE 6

6

Consolidated Financial Summary

Net Revenues Net Revenues

(+ 13.8%) (+ 13.8%)

(year-on-year change)

Operating Income Operating Income

(+ 19.2%) (+ 19.2%)

Net Income Net Income

(+ 19.8%) (+ 19.8%)

23.9480 23.9480 2.2386 2.2386 1.6440 1.6440

trillion yen trillion yen trillion yen trillion yen trillion yen trillion yen

Significant increase in revenues and earnings through

global sales growth

Record results in net revenues, operating income and

net income Highlights

SLIDE 7

7

Business Environment

Product Quality Raw Material Environment & Safety Energy Sources Overseas Production Emerging Markets

Challenging supply /

demand balance

Rising prices
Stringent Regulations
Customer needs
Limited availability of

fossil fuels

Development of

alternative fuels

Longer period of
wnership
Increased

technological content

Exceeding domestic

production volume

Establishing local

production and supply

Turning into Opportunities

SLIDE 8

8

Growth Philosophy

Stable & Long-term Growth Growth Drivers

Full-line & All Regions

Risks Risks

Production & Supply Technology Marketing

Avoid or Absorb Take-in Opportunities Opportunities

Products

Product Quality / Costs Human Resources For Continued Growth

Quality Improvement Solid Foundation

SLIDE 9

FY2007/FY2008 Main Action Plans

North America – Product Enhancement & Localization of Production China

– Rapid Establishment of Local Operations

Global Core Models

– Worldwide Launch

VI Activities

– Implementation

Technology

– Development of Future Growth Areas

SLIDE 10

10

North America – Product Enhancement & Localization of Production

FY2007

Start of Texas plant
New Tundra completing full line-up

FY2008

Subaru of Indiana Automotive starting production
Preparation for new plant in Canada and Mississippi
Strengthen product line-up
“Build where we sell” X Self-reliance of overseas operations

Quality Improvement Quality Improvement

Segment model 1970‘s 1980‘s 1990‘s 2000‘s Large Avalon Medium Compact Large Tundra Small Tacoma Pickup Camry Sedan Corolla Luxury RX Medium SUV Minivan Small Light Tracks Highlander RAV4 Sienna Passenger Vehicle NG Highlander RAV4

Full Full Line Line-

up

up

Start of Local Production Capacity Expansion/ Additional Plants Start of Local Production (Plan)

SLIDE 11

11

China – Rapid Establishment of Local Operations

Incorporation of local requirements in global models and smooth start-up
Rapid expansion of sales network particularly in urban areas
Guangzhou Camry: Start of production
Tianjin NG Corolla: Start of production
Network expansion of 3 dealer channels

Camry

FY2007

Corolla

FY2008

Quality Improvement Quality Improvement

(thousands of vehicles)

Number of sales/production/sales outlets

308 183 116 98 50 285 144 95 53 4 372 215 147 92 50 100 200 300 400 2002 2003 2004 2005 2006 100 200 300 400 Vehicle Sales Vehicle Production Sales Outlets (outlets)

CY

SLIDE 12

12

Global Core Models – Worldwide launch

Global sharing of production design, production facilities and marketing tools
Concentrated mass trial production & technical training in Japan

Quality Improvement Quality Improvement

FY2007

Camry

FY2008

Russia

Taiwan, Australia, Thailand, China

Corolla Auris

China, South Africa, Taiwan, Thailand, Brazil, etc. Japan, UK, Turkey Japan

Overseas plant

Common production facilities Mass trial production

Overseas plant

Common design plan Standardized operation Regional requirements

Dealer Dealer

Common marketing tools

Worldwide Launch

Standardized quality
Shorter period
Higher efficiency

Technical training

GPC*

*GPC = Global Production Center

SLIDE 13

13

VI Activities – Implementation

Focus on activities for vehicles produced overseas and compact vehicles and implement cost reductions as planned

Identification through 2010 Models
Inclusion of Material-focused Activities
Start of Implementation
Emphasis on vehicles produced overseas

and compact vehicles

FY2007 FY2008

Body System ECU Chassis System ECU Power-train System ECU

Higher Function + Fewer ECUs + Smaller ECUs

Starting with a model to be launched in FY2008

Body System Chassis System Power-train System

New

Function

Respond to

Tougher Regulations

【 Integration within systems 】【 Integration among systems 】

*ECU = Electronic Control Unit

【Example: ECU*】

Improve

Attractiveness

New

Function

Respond to

Tougher Regulations

Improve

Attractiveness

Quality Improvement Quality Improvement

SLIDE 14

14

Technology – Development of Future Growth Areas

Environmental Technology

(fuel efficiency, CO2 , emissions)

Next Generation HV
Alternative Fuel Vehicles(bio fuels, electricity, hydrogen)
Safety Technology

(advanced technology application to products)

Low Cost Technology

Quality Improvement Quality Improvement

R&D and resources investment for attractive product and future technology

New Product Development

Development of Future Growth Areas

HR Development Human Resources

R&D Investment Attractive Products Meeting Market Demands

Advanced Technology

High Design Quality Efficiency (IT Utilization) Enhancement

SLIDE 15

15

Consolidated Financial Summary

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

(trillions of yen)

23.9480 23.9480 2.2386 2.2386 2.3825 2.3825 1.6440 1.6440

117 yen 117 yen 150 yen 150 yen

21.0369 21.0369 1.8783 1.8783 * *2.0873 2.0873 1.3721 1.3721

113 yen 113 yen 138 yen 138 yen

2.9111 2.9111 0.3603 0.3603 0.2952 0.2952 0.2719 0.2719

+ 4 yen + 4 yen + 12 yen + 12 yen

13.8% 13.8% 19.2% 19.2% 14.1% 14.1% 19.8% 19.8%

Other income included a 143.3 billion yen evaluation gain resulting from the merger of the Mitsubishi-Tokyo Financial Group and the UFJ Holdings

FY2006 (’05/4-’06/3) FY2006 (’05/4-’06/3)

* *

Net Revenues Net Revenues FOREX Rates FOREX Rates Net Income Net Income

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

Operating Income Operating Income $ $ € €

SLIDE 16

16

Contributing Factors to Consolidated Operating Income

1,250.0 1,500.0 1,750.0 2,000.0 2,250.0

'05/4-'06/3 '06/4-'07/3

2,238.6 (+ 360.3) 1,878.3

(billions of yen) Increase in Expenses

359.7

Cost Reduction Efforts + 100.0 Marketing Efforts + 330.0 Effects of favorable FOREX rates + 290.0

95.7
70.6
99.7

R&D Expenses ............. Depreciation and CAPEX related costs..... Labor costs.................... Expenses related to business expansion .... Changes in the accounting

f depreciation ...........

Valuation loss of interest rate swaps ............

128.4

+ 46.3

11.6

SLIDE 17

17

Geographic Operating Income: Japan

Increased exports contributed to earnings growth
Product mix improved thanks to Lexus LS, etc.

389.3 383.5 391.4 293.0 197.5 408.9 281.1 188.4

659 541 530 536 550 543 571 707 1,331 1,219 1,231 1,316 1,177 1,068 1,123 1,319

200 400 '05/4-6 '05/7-9 '05/10-12 '06/1-3 '06/4-6 '06/7-9 '06/10-12 '07/1-3

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

’05/4-’06/3

1,075.9

’06/4-’07/3

1,457.2

(billions of yen)

SLIDE 18

18

Geographic Operating Income: North America

Strong sales driven by new models
Temporary costs increased due to start up of Texas plant and model change

100.0 99.1 110.4 140.1 130.7 99.3 127.8 137.8

714 764 717 604 641 747 643 668

100 200 '05/4-6 '05/7-9 '05/10-12 '06/1-3 '06/4-6 '06/7-9 '06/10-12 '07/1-3

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

(billions of yen)

’05/4-’06/3

495.6

’06/4-’07/3

449.6

SLIDE 19

19

Geographic Operating Income: Europe

Higher level of earnings due to popular core models(Yaris, Aygo & RAV4)

36.5 34.8 29.5 36.5 23.4 27.2 26.6 16.7

329 306 281 242 256 308 246 279

25 50 '05/4-6 '05/7-9 '05/10-12 '06/1-3 '06/4-6 '06/7-9 '06/10-12 '07/1-3

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

(billions of yen)

’05/4-’06/3

93.9

’06/4-’07/3

137.3

SLIDE 20

20

Geographic Operating Income: Asia

Vehicle sales declined due to weak demand in Indonesia and Taiwan

28.2 28.1 31.3 30.0 35.6 31.5 38.6 39.8

203 204 189 219 229 193 217 215

25 50 '05/4-6 '05/7-9 '05/10-12 '06/1-3 '06/4-6 '06/7-9 '06/10-12 '07/1-3

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

’05/4-’06/3

145.5

’06/4-’07/3

117.6

(billions of yen)

SLIDE 21

21

Geographic Operating Income: Other

IMV and Camry supported substantial earnings growth

16.4 31.0 20.2 15.9 19.2 16.3 14.7 17.0

319 340 337 284 272 300 303 292

20 40 '05/4-6 '05/7-9 '05/10-12 '06/1-3 '06/4-6 '06/7-9 '06/10-12 '07/1-3

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

(billions of yen)

’05/4-’06/3

67.2

’06/4-’07/3

83.5

SLIDE 22

22

Business Segment: Financial Services

Profit increased as balance of finance steadily grew
Valuation loss on interest rate swaps = 11.6 billion yen

37.3 41.3 32.2 47.7 43.8 25.5 46.8 39.7

20 40 '05/4-6 '05/7-9 '05/10-12 '06/1-3 '06/4-6 '06/7-9 '06/10-12 '07/1-3

Operating Income (billions of yen)

(billions of yen)

’05/4-’06/3

155.8

’06/4-’07/3

158.5

SLIDE 23

23

Equity Earnings of Affiliated Companies

Strong performance led by Toyota Group companies in Japan and

Chinese joint venture companies

54.0 66.1 33.2 56.2 35.1 47.8 45.8 35.6

50 '05/4-6 '05/7-9 '05/10-12 '06/1-3 '06/4-6 '06/7-9 '06/10-12 '07/1-3

Equity Earnings of Affiliated Companies (billions of yen)

(billions of yen)

’05/4-’06/3

164.3

China 11.1 (included)

’06/4-’07/3

209.5

China 24.1 (included)

SLIDE 24

24

FY2007 Consolidated CAPEX, Depreciation, R&D

Capital Expenditure Capital Expenditure

Consolidated Consolidated

N. America
N. America

Japan Japan

R&D Expenses R&D Expenses Depreciation Expenses Depreciation Expenses

Europe Europe Asia Asia Others Others

1,482.6 1,482.6 815.3 815.3 319.3 319.3 119.7 119.7 141.6 141.6 86.7 86.7

(- 46.2) (- 10.8) (+ 9.7) (- 94.0) (+ 49.0) (- 0.1)

947.0 947.0 592.5 592.5 165.3 165.3 89.5 89.5 61.9 61.9 37.8 37.8

(+ 55.6) (+ 13.6) (+ 13.9) (+ 23.6) (+ 0.2) (+ 4.3)

890.7 890.7

(+ 78.1)

(billions of yen)

Figures in parenthesis represent year-on-year change

SLIDE 25

25

Unconsolidated Financial Summary (Japan GAAP)

11.5718 11.5718 1.1509 1.1509 1.5551 1.5551 1.0601 1.0601 10.1918 10.1918 0.8479 0.8479 1.1047 1.1047 0.7659 0.7659

1.3800 1.3800 0.3030 0.3030 0.4504 0.4504 0.2942 0.2942 13.5% 13.5% 35.7% 35.7% 40.8% 40.8% 38.4% 38.4%

FY2007 (’06/4-’07/3) FY2007 (’06/4-’07/3) Change Change FY2006 (’05/4-’06/3) FY2006 (’05/4-’06/3)

(trillions of yen)

Net Revenues Net Revenues Net Income Net Income Ordinary Income Ordinary Income Operating Income Operating Income

SLIDE 26

26

Contributing Factors to Unconsolidated Operating Income

600.0 800.0 1,000.0 1,200.0 '05/4-'06/3 '06/4-'07/3

1,150.9 (+ 303.0) 847.9

Increase in Expenses

187.0

Cost Reduction + 70.0 Marketing Efforts + 160.0 Effects of favorable FOREX rates + 260.0

73.8
21.1
34.8

R&D Expenses ............ Depreciation and CAPEX related costs.... Labor costs................... Expenses related to business expansion .... Changes in the accounting

f depreciation ...........
103.6

+ 46.3 <Details of Increases in Expenses> (billions of yen)

SLIDE 27

27

Consolidated Prospects: Vehicle Sales

890 2,320 2,273 2,990 2,942 1,270 1,224 789 1,420 1,296

2,000 4,000 6,000 8,000 '06/4-'07/3 '07/4-'08/3

Other Asia Europe

N. America

Japan

8,890

(+ 366) (+ 124) (+ 46) (+ 48) (+ 47) (+ 101)

8,524

(thousands of vehicles)

Figures in parenthesis represent year-on-year change

SLIDE 28

28

FY2008 Consolidated Prospects

25.0000 25.0000 2.2500 2.2500 2.4000 2.4000 1.6500 1.6500

115 yen 115 yen 150 yen 150 yen

23.9480 23.9480 2.2386 2.2386 2.3825 2.3825 1.6440 1.6440

117 yen 117 yen 150 yen 150 yen

1.0520 1.0520 0.0114 0.0114 0.0175 0.0175 0.0060 0.0060

2 yen

2 yen －－

4.4% 4.4% 0.5% 0.5% 0.7% 0.7% 0.4% 0.4%

FY2008 (’07/4-’08/3) FY2008 (’07/4-’08/3) Change Change FY2007 (’06/4-’07/3) FY2007 (’06/4-’07/3) Net Revenues Net Revenues FOREX Rates FOREX Rates Net Income Net Income

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

Operating Income Operating Income $ $ € €

(trillions of yen)

SLIDE 29

29

FY2008 Consolidated CAPEX, Depreciation, R&D

1,500.0 1,500.0 800.0 800.0 400.0 400.0 110.0 110.0 110.0 110.0 80.0 80.0

(+ 17.4) (- 9.7) (- 31.6) (- 15.3) (+ 80.7) (- 6.7)

1,020.0 1,020.0 630.0 630.0 190.0 190.0 90.0 90.0 65.0 65.0 45.0 45.0

(+ 73.0) (+ 0.5) (+ 3.1) (+ 37.5) (+ 24.7) (+ 7.2)

940.0 940.0

(+ 49.3)

(billions of yen)

Capital Expenditure Capital Expenditure R&D Expenses R&D Expenses Depreciation Expenses Depreciation Expenses

Consolidated Consolidated

N. America
N. America

Japan Japan Europe Europe Asia Asia Others Others

Figures in parenthesis represent year-on-year change

SLIDE 30

30

FY2008 Unconsolidated Prospects

11.7000 11.7000 1.1000 1.1000 1.5900 1.5900 1.1300 1.1300 11.5718 11.5718 1.1509 1.1509 1.5551 1.5551 1.0601 1.0601

0.1282 0.1282

0.050

0.0509 9 0.0349 0.0349 0.0699 0.0699 1.1% 1.1%

4.4%

4.4% 2.2% 2.2% 6.6% 6.6%

Net Revenues Net Revenues Net Income Net Income Ordinary Income Ordinary Income Operating Income Operating Income FY2008 (’07/4-’08/3) FY2008 (’07/4-’08/3) Change Change FY2007 (’06/4-’07/3) FY2007 (’06/4-’07/3)

(trillions of yen)

SLIDE 31

31

Shareholder Return

13 14 14 20 25 40 55 70 16 14 11 11 20 25 35 50

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 06/4-07/3

Interim Year-end

Dividend : 120 yen per share

Total Amount of Payout : 384.6 billion yen Consolidated Payout Ratio : 23.4％

(year-on-year change +2.1％)

(year-on-year change 30 yen up)

120

24 90 65 45 36 28 25

SLIDE 32

32

Shareholder Return

Enabling Amount

(maximum limitation)

250 billion yen 30 million shares Share Share Buyback Buyback

106.4 134.3 45.4 263.6 277.5 453.4 398.8 266.2 133.6 299.5

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 06/4-07/3

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

SLIDE 33

33

FY2008 Toyota’s Operations Prospects

FY2008 (’07/4-’08/3) FY2008 (’07/4-’08/3)

Sales (Overseas) Sales (Overseas) Exports Exports Sales Sales (Japan) (Japan)

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

1,720 1,720 2,590 2,590 6,900 6,900 1,659 1,659 2,597 2,597 6,443 6,443

Automotive Automotive Production Production Japan Japan Overseas Overseas

Housing Sales Housing Sales

5,200 5,200 5,001 5,001 4,280 4,280 4,185 4,185 4,380 4,380 3,939 3,939

Units Units

8,660 8,660 8,124 8,124

(thousands of vehicles) (thousands of vehicles)

Total Total

SLIDE 34

FY2007 Financial Results FY2007 Financial Results

prepared in accordance with U.S. GAAP -