FY2007 First Quarter Financial Results FY2007 First Quarter Financial Results Three months ended June 30, 2006 Three months ended June 30, 2006 - prepared in accordance with U.S. GAAP prepared in accordance with U.S. GAAP - - - Toyota Motor Corporation Toyota Motor Corporation August 4, 2006 August 4, 2006
Cautionary Statement with Respect to Forward-Looking Statements 2 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 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.
Caution concerning Insider Trading 3 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.
Takahiko Ijichi Ijichi Takahiko Managing Officer Managing Officer
Consolidated Vehicle Sales 5 ( thousands of vehicles ) [ 2,208 ] [ 2,058 ] 2,091 (+143) 1,948 2,000 (+28) 300 272 (- 36) 193 229 1,500 (+52) 308 256 1,000 747 (+106) Other 641 Asia Europe 500 N.America (- 7) 550 543 Japan 0 '05/4-6 '06/4-6 - Figures in brackets show total retail vehicle sales of Toyota/Lexus, Daihatsu, and Hino vehicles
Consolidated Financial Summary (Q1) 6 ( billions of yen ) FY2007 Q1 FY2006 Q1 FY2007 Q1 FY2006 Q1 Changes Changes ( ‘06/4-6 ) ( ‘06/4-6 ) ( ‘05/4-6 ) ( ‘05/4-6 ) Net Revenues Net Revenues 5,638.1 4,981.7 656.4 13.2% 5,638.1 4,981.7 656.4 13.2% Operating Income Operating Income 512.4 405.1 107.3 26.5% 512.4 405.1 107.3 26.5% Income before income Income before income taxes, minority interest taxes, minority interest 554.6 421.8 132.8 31.5% 554.6 421.8 132.8 31.5% and equity in earnings and equity in earnings of affiliated companies of affiliated companies Net Income Net Income 371.5 266.8 104.7 39.2% 371.5 266.8 104.7 39.2% $ $ 115yen yen 108yen yen +7yen yen 115 108 +7 FOREX Rates FOREX Rates € € 144yen yen 135yen yen +9yen yen 144 135 +9
Contributing Factors to Consolidated Operating Income 7 (billions of yen) Cost Reduction 550 Increases in Expenses - 72.7 512.4 Efforts +20.0 Marketing Efforts +60.0 (+107.3) R&D Expenses - 27.5 Depreciation and 500 CAPEX related costs - 15.4 Labor Costs -12.5 Other Expenses - 17.3 450 405.1 400 Effects of favorable FOREX Rates 350 +100.0 300 250 '05/4-6 '06/4-6
Geographic Operating Income: Japan 8 1,316 1,231 1,177 500 1,123 408.9 1,068 400 293.0 281.1 300 197.5 188.4 707 200 571 550 543 536 100 0 '05/4-6 '05/7-9 '05/10-12 '06/1-3 '06/4-6 Operating Income ( billions of yen ) Consolidated Vehicle Sales ( thousands of vehicles ) Consolidated Vehicle Production ( thousands of vehicles ) - 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.
Geographic Operating Income: North America 9 747 668 641 643 200 604 140.1 137.8 130.7 150 127.8 99.3 100 50 0 '05/4-6 '05/7-9 '05/10-12 '06/1-3 '06/4-6 Operating 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.
Geographic Operating Income: Europe 10 308 50 279 256 246 242 36.5 40 27.2 30 26.6 23.4 20 16.7 10 0 '05/4-6 '05/7-9 '05/10-12 '06/1-3 '06/4-6 Operating Income ( billions of yen ) Consolidated vehicle sales ( thousands of vehicles ) - Operating income grew significantly with sales of new models such as Yaris and RAV4.
Geographic Operating Income: Asia 11 229 219 217 215 50 193 39.8 38.6 35.6 40 31.5 30.0 30 20 10 0 '05/4-6 '05/7-9 '05/10-12 '06/1-3 '06/4-6 Operating 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.
Geographic Operating Income: Others 12 300 303 292 284 272 25 19.2 20 17.0 16.3 15.9 14.7 15 10 5 0 '05/4-6 '05/7-9 '05/10-12 '06/1-3 '06/4-6 Operating Income ( billions of yen ) Consolidated vehicle sales ( thousands of vehicles ) - Continued strong sales driven by IMV.
Business Segment: Financial Services 13 47.7 46.8 50 43.8 39.7 40 30 25.5 20 10 0 '05/4-6 '05/7-9 '05/10-12 '06/1-3 '06/4-6 Operating Income ( billions of yen ) - Operating income increased following growth in the balance of captive finance. - Valuation gains from interest rate swaps: +6.6 bil. yen
Equity in Earnings of Affiliated Companies 14 56.2 47.8 50 45.8 35.1 40 35.6 30 20 10 0 '05/4-6 '05/7-9 '05/10-12 '06/1-3 '06/4-6 Equity in earnings of affiliated companies (billions of yen) - Strong performance by group affiliates in Japan and Chinese joint ventures.
Unconsolidated Financial Summary (Japan GAAP) 15 ( billions of yen ) FY2007 Q1 FY2007 Q1 FY2006 Q1 FY2006 Q1 Changes Changes ( ‘06/4-6 ) ( ‘05/4-6 ) ( ‘06/4-6 ) ( ‘05/4-6 ) Net Sales Net Sales 2,698.5 2,345.7 352.8 15.0% 2,698.5 2,345.7 352.8 15.0% Operating Operating 246.5 143.3 103.2 72.1% 246.5 143.3 103.2 72.1% Income Income Ordinary Ordinary 399.9 217.9 182.0 83.6% 399.9 217.9 182.0 83.6% Income Income Net Income Net Income 277.6 152.7 124.9 81.8% 277.6 152.7 124.9 81.8%
Contributing Factors to Unconsolidated Operating Income 16 Cost Reduction (billions of yen) 246.5 Effort +10.0 Marketing Effort (+103.2) +40.0 250 Increases in Expenses - 26.8 R&D Expenses - 25.0 200 Depreciation and CAPEX related costs - 3.8 Effects of favorable Other Expenses +2.0 FOREX Rates +80.0 143.3 150 100 '05/4-6 '06/4-6
FY2007 Consolidated Prospects:Vehicle Sales 17 ( thousands of vehicles ) 8,450 (+476) 7,974 8,000 1,250 (+99) 1,151 7,000 850 (- 30) 880 6,000 1,160 (+137) 1,023 5,000 4,000 2,800 (+244) 2,556 Other 3,000 Asia 2,000 Europe 2,390 2,364 (+26) N.America 1,000 Japan 0 ‘05/4-‘06/3 ‘06/4-‘07/3 Results Prospects Figures in parentheses show year-on-year change projections
FY2007 Consolidated Prospects 18 (billions of yen) Net Revenue: 22,300.0 Net Revenue: 22,300.0 Operating Income: 1,900.0 Operating Income: 1,900.0 Net Income: 1,310.0 Net Income: 1,310.0 110 yen yen 110 $ $ FOREX Rate Assumptions FOREX Rate Assumptions € € 135 yen yen 135
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