FY2007 Semi FY2007 Semi - - Annual Annual Financial Results Financial Results Toyota Motor Corporation Toyota Motor Corporation November 7, 2006 November 7, 2006 - - prepared in accordance with U.S. GAAP prepared in accordance with U.S. GAAP - -
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
'05/4-9 '05/10-'06/3 '06/4-9Operating Income (billions of yen)Consolidated Vehicle Sales (thousands of vehicles)
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
'05/4-9 '05/10-'06/3 '06/4-9Operating Income (billions of yen)Consolidated Vehicle Sales (thousands of vehicles)
12Geographic Operating Income: Others
・ Continued strong sales driven by IMV
31.036.136.2
595 637556
0
10
20
30
40
50
'05/4-9 '05/10-'06/3 '06/4-9Operating Income (billions of yen)Consolidated Vehicle Sales (thousands of vehicles)
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)
Net RevenuesNet Revenues
Net IncomeNet Income
Operating IncomeOperating Income
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%
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
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)
Net RevenuesNet Revenues
Net IncomeNet Income
Operating IncomeOperating Income
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