Toyota Motor Corp. · TSE:7203
Toyota Motor — FY2005 Earnings Presentation
41 slides from Toyota Motor's earnings presentation, May 10, 2005
Slide 1: FY2005 Financial Results
FY2005 Financial Results Twelve months ended March 31, 2005 Toyota Motor Corporation May 10, 2005
Slide 2: Today's Agenda
Today’s Agenda - Direction of Toyota’s Business (20 min.) - Summary of Financial Results for FY2005(10 min.) - Q & A Session
Slide 3: Cautionary Statement with Respect to Forward-Looking Statements
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
Slide 4: Caution concerning Insider Trading
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 T
Slide 5: Takashi Hata
Takashi Hata Managing Officer
Slide 6: FY2005 Summary: Consolidated Vehicle Sales
FY2005 Summary Consolidated Vehicle Sales [ 7,633 ] [ 7,016 ] 7,408 (+689) (thousands of units) 6,719 1,777 (+362) 6,000 1,415 979 (+81) 898 4,000 2,271 (+168) 2,103 2,000 (+78) 2,303 2,381 0 FY2004 FY2005 Japan North America Europe Other Regions Figures in brackets show total retail unit sales of T
Slide 7: FY2005 Summary of Financial Results Achieved Record High
FY2005 Summary of Financial Results Achieved Record High Consolidated Net Revenue: 18,551.5 billion yen Consolidated Operating Income: 1,672.1 billion yen Consolidated Net Income: 1,171.2 billion yen
Slide 8: For Future Growth
For Future Growth
Slide 9: Business Performance
Operating Income (billions of yen) Business Performance Net Revenue 1,800 (billions of yen) 20,000 1,600 1,400 15,000 1,200 Consolidated Net Revenue 1,000 10,000 800 600 400 5,000 200 0 0 95/4-96/3 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 : Consolidat
Slide 10: Drastic Changes in Business Environment in Late 1990s and Shift of Toyota's Business Strategies
Drastic Changes in Business Environment in Late 1990s and Shift of Toyota’s Business Strategies Changes in Business Shift of Strategy Environment 1. Appreciation of the 1. Become free from yen to 80 yen/US$(1995) exchange risks 2. Asian Crisis (1997) 2. Optimal production 3. Integration of Europe, 3
Slide 11: Expansion of Overseas Production Bases (1995)
Expansion of Overseas Production Bases In 1995: 25 production bases in 18 countries
Slide 12: Expansion of Overseas Production Bases (2005)
Expansion of Overseas Production Bases In 2005: 51 production bases in 26 countries
Slide 13: Establishment of Business Foundation and Efforts to Maximize Profits
Establishment of Business Foundation and Efforts to Maximize Profits Czech Capital Expenditure (Consolidated) Changchun (China) (billions of yen) Alabama (US) 2,000 India Poland 1,800 West Virginia (US) Sichuan (China) Tianjin (China) 1,600 Indiana (US) France 1,400 1,200 Canada 1,000 800 600 400 20
Slide 14: Establishment of Business Foundation and Efforts to Maximize Profits
Establishment of Business Foundation and Efforts to Maximize Profits Czech Capital Expenditure (Consolidated) Changchun (China) (billions of yen) Alabama (US) 2,000 India Poland 1,800 West Virginia (US) Sichuan (China) Tianjin (China) 1,600 Indiana (US) France 1,400 1,200 Canada 1,000 800 600 400 20
Slide 15: After 2005: Aiming for Further Expansion
Expansion of Overseas Production Bases After 2005: Aiming for Further Expansion Russia St. Petersburg Guangzhou Texas Thailand 3rd Factory
Slide 16: Establishment of Business Foundation and Efforts to Maximize Profits
Establishment of Business Foundation and Efforts to Maximize Profits R&D (unconsolidated) Prius (billions of yen) 700 Vitz/Yaris SUV HV Harrier/RX 600 Harrier/RX Crown Camry 500 Prius Corolla 400 300 200 100 0 95/4-96/3 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
Slide 17: Toyota's Future Direction
Toyota’s Future Direction - Aiming for Growth in the 21st Century -
Slide 18: Further Qualitative Challenges: Market Creation Strategies
Further Qualitative Challenges Market Creation Strategies New Technologies for People and Energy Realization of Sustainable Mobility
Slide 19: Market Creation Strategies: Zero-nize, Maxi-mize
Market Creation Strategies “Zero-nize” “Maxi-mize” Eliminate the Burden Driving Pleasure on the Environment Peace of Mind Eliminate Accidents Eliminate Hospitality and Inconvenience Comfort
Slide 20: Realizing both Ecology and Power: Hybrid Lineup
Market Creation Strategies “Zero-nize” “Maxi-mize” Realizing both “Ecology” and “Power” Highlander HV RX400h(SUV-HV) Harrier HV Kluger HV (SUV-HV) New New Prius Prius Model Original Prius Expansion of Hybrid Products Lineup
Slide 21: Traffic Safety: Passive and Active Safety
Market Creation Strategies “Zero-nize” “Maxi-mize” Passive Safety Coordinate the Three Elements for Traffic Safety Body structure caring about pedestrians’ safety, etc. Automobiles Active Safety Vehicle Dynamics People Traffic Environment Integrated Management, etc
Slide 22: Strengthening Global Competitiveness
Further Qualitative Challenges Strengthening Global Competitiveness - Continuous cost reduction efforts - Self reliance of overseas operations Deliver new technologies to more customers at more reasonable price
Slide 23: New Phase in Cost Reduction Efforts: VI Activities
Strengthening Global Competitiveness New Phase in Cost Reduction Efforts: “ VI Activities ” VI = Value Innovation Component based System based activities activities
Slide 24: Self reliance of overseas operations: IMV Project
Strengthening Global Competitiveness Self reliance of overseas operations Support IMV Project India Thailand Philippines Indonesia Malaysia South Africa Support Argentina
Slide 25: Self reliance of overseas operations: North America
Strengthening Global Competitiveness Self reliance of overseas operations TMMI Support (Indiana) TMMK (Kentucky) TMMBC (Mexico) TMMTX (Texas) Support
Slide 26: Global R&D Structure
Strengthening Global Competitiveness Global R&D Structure
Slide 27: Future Profit Structure: Well-Balanced among Four Regions
Future Profit Structure Well-Balanced among Four Regions Asia and Other Regions Japan North Europe America
Slide 28: Stronger Emphasis on Consolidated Payout Ratio
Shareholders’ Return Stronger Emphasis on Consolidated Payout Ratio Higher Continuous Consolidated Growth in EPS Payout Ratio
Slide 29: Shareholders' Return
Shareholders’ Return FY2005 Dividend: 65 yen (+ 20 yen from FY2004) Consolidated Payout Ratio: 18.3% 65 yen 45 36 28 24 25 99/4-00/3 00/4-01/3 01/4-02/3 02/4-03/3 03/4-04/3 04/4-05/3
Slide 30: FY2005 Summary of Financial Results
FY2005 Summary of Financial Results
Slide 31: Summary of FY2005 Consolidated Financial Results
Summary of FY2005 Consolidated Financial Results Vehicle Production : 7,231 Thousand Units Vehicle Sales : 7,408 Thousand Units Net Revenue : 18,551.5 Billion Yen Operating Income : 1,672.1 Billion Yen Net Income : 1,171.2 Billion Yen Exchange rate: 108 yen/US$ (appreciation of the yen by 5 yen
Slide 32: Contributing Factors to Operating Income
Contributing Factors to Operating Income (billions of yen) Substantial Cost Reduction Increase of Profits Efforts +160.0 1,800.0 1,672.1 +205.1 1,666.8 Marketing Efforts (+5.3) (volume, mix, etc.) 1,600.0 +230.0 Unfavorable 1,400.0 ForEx Rate -140.0 Decrease in 1,200.0 DAIKO HENJO Increases in R&D -
Slide 33: Geographic Segment: Japan
Geographic Segment : Japan 2,381 Consolidated 2,303 vehicle sales (thousands of units) (billions of yen) 1,200.0 1,108.1 DAIKO-HENJO 1,000.0 Profit 107.0 987.2 DAIKO-HENJO V i t z Profit 47.2 800.0 600.0 400.0 200.0 0.0 03/4-04/3 04/4-05/3 Mark X
Slide 34: Geographic Segment: North America
Geographic Segment : North America 2,271 Consolidated vehicle sales 2,103 (billions of yen) (thousands of units) 500.0 447.5 391.0 AVALON 400.0 300.0 200.0 TACOMA 100.0 0.0 03/4-04/3 04/4-05/3 LEXUS GS
Slide 35: Geographic Segment: Europe
Geographic Segment : Europe (billions of yen) 979 Consolidated vehicle sales 150.0 898 (thousands of units) 108.5 100.0 72.5 AVENSIS 50.0 0.0 03/4-04/3 04/4-05/3 AYGO
Slide 36: Geographic Segment: Other
Geographic Segment : Other 1,777 Consolidated (billions of yen) vehicle sales (thousands of units) 150.0 141.2 1,415 96.9 100.0 HILUX VIGO 50.0 0.0 03/4-04/3 04/4-05/3 FORTUNER
Slide 37: FY2006 Consolidated Prospects: Vehicle Unit Sales
FY2006 Consolidated Prospects : Vehicle Unit Sales (thousands of units) 7,850 (+442) 8,000 7,408 1,930 (+153) 1,777 6,000 979 1,040 (+61) 4,000 2,271 2,430 (+159) 2,000 2,381 2,450 (+ 69) 0 FY2005 FY2006 Prospects Japan N. America Europe Other Figures in parentheses show year-on-year changes
Slide 38: FY2006 Consolidated Prospects: CapEx, Depreciation, R&D
FY2006 Consolidated Prospects : CapEx, Depreciation, R&D Capital Depreciation R&D Expenditures Expenses Expenses (billions of yen) (billions of yen) (billions of yen) (+162.8) (+54.2) (+14.9) Consolidated 1,250.0 830.0 770.0 (+95.0) (+31.6) Japan 770.0 520.0 (+66.3) (-3.0) North America 220.0 150.0
Slide 39: Toyota's Operations Prospects (excluding Daihatsu and Hino)
Toyota’s Operations Prospects (excluding Daihatsu and Hino) FY2006 Prospects FY2005 ('05/4-'06/3) ('04/4-'05/3) thousands of units thousands of units Automotive Japan 3,770 3,749 Production Overseas 3,610 3,127 Sales (Japan) 1,830 1,804 Exports 1,990 1,982 Sales (Overseas) 5,500 5,044 units units Ho
Slide 40: FY2006 Unconsolidated Prospects
FY2006 Unconsolidated Prospects (Japan GAAP) FY2006 Prospects FY2005 Change ('05/4-'06/3) ('04/4-'05/3) (billions of yen) (billions of yen) (billions of yen) Net Sales 9,400.0 9,218.3 181.7 Operating Income 620.0 701.3 -81.3 Ordinary Income 770.0 856.2 -86.2 Net Income 500.0 529.3 -29.3 Exchange Rat
Slide 41: FY2005 Financial Results
FY2005 Financial Results Twelve months ended March 31, 2005 Toyota Motor Corporation May 10, 2005