Toyota Motor Corp. · TSE:7203
Toyota Motor — 1H FY2006 Earnings Presentation
25 slides from Toyota Motor's earnings presentation, Nov 4, 2005
Slide 1: FY2006 1H Financial Results
FY2006 1H Financial Results Six months ended September 30, 2005 - prepared in accordance with U.S. GAAP - Toyota Motor Corporation November 4, 2005
Slide 2: 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 3: 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 4: Takeshi Suzuki
Takeshi Suzuki Senior Managing Director 4
Slide 5: Consolidated Financial Summary
Consolidated Financial Summary FY2006 1H FY2005 1H Changes (’05/4-9) (’04/4-9) (billions of yen) (billions of yen) (billions of yen) % (*) Net revenues 9,953.1 9,025.6 927.5 10.3 Operating income 809.4 866.2 -56.8 -6.6 Income before income taxes, minority interest and equity in earnings 855.9 913.2
Slide 6: Consolidated Vehicle Sales
Consolidated Vehicle Sales (thousands of units) [ 4,094 ] [ 3,730 ] 3,833 (+266) 4,000 3,567 556 (+83) 473 3,000 448 (+62) 386 498 (+22) 476 2,000 1,245 (+119) 1,126 1,000 1,106 1,086 (-20) 0 '04/4-9 '05/4-9 Japan N. America Europe Asia Other Figures in brackets show total retail unit sales of Toyot
Slide 7: Contributing Factors to Consolidated Operating Income
Contributing Factors to Consolidated Operating Income Favorable (billions of yen) ForEx Rate +20.0 866.2 Marketing Efforts 850 (volume, mix, etc.) 809.4 +70.0 (-56.8) 800 Cost Reduction Efforts 750 +60.0 700 650 Decrease in 600 DAIKO HENJO -9.1 550 Increases in Expenses -197.7 500 - R&D expenses, De
Slide 8: Geographic Operating Income: Japan
Geographic Operating Income: Japan *Product Mix: Recovery from Q2 towards the 2nd half (billions of yen) 702 568 573 538 550 536 300 253.0 259.3 237.6 237.3 188.4 197.5 200 '04/4-9 '05/4-9 Operating Operating Income Income 100 490.6 billion yen 385.9 billion yen 0 '04/4-6 '04/7-9 '04/10-12 '05/1-3 '
Slide 9: Geographic Operating Income: North America
Geographic Operating Income: North America *120,000 units increase in vehicle sales *Shifting to compact and fuel-efficient vehicles (billions of yen) 200 641 604 572 554 576 569 150 137.8 129.8 127.8 130.7 114.9 100 04/4-9 '05/4-9 75.0 Operating Operating Income Income 50 244.7 billion yen 268.5 bi
Slide 10: Geographic Operating Income: Europe
Geographic Operating Income: Europe *Tough market condition *Expansion of Lexus sales and marketing network (billions of yen)*Launch of Aygo 50 247 249 254 256 242 229 40 35.4 30.9 30 26.5 23.4 20 15.7 16.7 '04/4-9 '05/4-9 10 Operating Operating Income Income 66.3 billion yen 40.1 billion yen 0 '04/
Slide 11: Geographic Operating Income: Asia
Geographic Operating Income: Asia *Vehicle sales increased in all major countries *IMV Project: Start full-scale exports to Europe and M.East (billions of yen) 100 448 386 75.4 80 60 43.5 40 20 0 '04/4-9 '05/4-9 Operating Income (billions of yen) Consolidated vehicle sales (thousand of units) 11
Slide 12: Geographic Operating Income: Other
Geographic Operating Income: Other (Africa, South and Central America, etc.) *Profit increased due to the IMV project (billions of yen) 556 473 40 36.2 27.4 20 0 '04/4-9 '05/4-9 Operating Income (billions of yen) Consolidated vehicle sales (thousand of units) 12
Slide 13: Business Segments: Financial Services
Business Segments: Financial Services *Decrease in valuation gains from interest rate swaps of a U.S. sales financial subsidiary: -5.2 billion yen *Gain in FY2005 semi-annual to record prior-year adjustment by a U.S sales financial subsidiary: -9.5 billion yen (billions of yen) 58.7 60 56.5 50 46.2
Slide 14: Equity in Earnings of Affiliated Companies
Equity in Earnings of Affiliated Companies *Favorable performance mainly by domestic group affiliates (billions of yen) 50 41.3 39.3 40 34.7 35.6 35.1 30 24.1 20 '04/4-9 '05/4-9 58.8 billion yen 70.7 billion yen 10 0 '04/4-6 '04/7-9 '04/10-12 '05/1-3 '05/4-6 '05/7-9 Equity in Earnings of Affiliated
Slide 15: Unconsolidated Financial Summary (JAPAN GAAP)
Unconsolidated Financial Summary (JAPAN GAAP) FY2006 1H FY2005 1H Changes (’05/4-9) (’04/4-9) (billions of yen) (billions of yen) (billions of yen) % (*) Net sales 4,664.0 4,459.7 204.3 4.6 Operating income 297.6 392.3 -94.7 -24.1 Ordinary income 416.6 442.3 -25.7 -5.8 Net income 283.6 263.7 19.9 7.
Slide 16: Contributing Factors to Unconsolidated Operating Income
Contributing Factors to Unconsolidated Operating Income (billions of yen) Favorable 400 392.3 ForEx Rate Cost +10.0 Reduction 350 Efforts +30.0 297.6 Marketing Activities (-94.7) 300 -20.0 250 200 Increases in R&D expenses, etc -114.7 - R&D expenses, 150 Depreciation and CAPEX related costs, Labor c
Slide 17: Interim Dividend
Interim Dividend 35 Yen Per Share +10 yen increase per share 113.8 billion yen in total Dividend Payout Ratio Consolidated: 20.0% Unconsolidated: 40.2% 17
Slide 18: Activities planned for the 2nd half
Activities planned for the 2nd half: Boost the number of vehicle sales globally with introduction of new vehicles (thousands of units) 4,197 (+356) 4,000 3,841 554 (+83) 471 452 (+ 5) 3,000 447 542 (+39) 503 2,000 1,305 1,145 (+160) 1,000 1,275 1,344 (+ 69) 0 04/10-05/3 Actual 05/10-06/3 Forecast Ja
Slide 19: Activities planned for the 2nd half: Domestic Market
Activities planned for the 2nd half: Domestic Market Improvements of product mix, Increases in vehicle sales and market share 04/4 - 05/3 05/4 - 06/3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Premium Further Lexus Majesta GS, SC, IS new Harrier/ Kluger HV Mark X model Isis RAV4 launches Porte Vitz Ractis Passo expect
Slide 20: Activities planned for the 2nd half: Launch new domestic production sites
Activities planned for the 2nd half: Launch new domestic production sites Toyota Motor Hokkaido, Inc. Location: Hokkaido Start of operation: Toyota Motor Kyushu, Inc. Location: Fukuoka End of 2005 Start of operation: Sep. 2005 Products: Transmission Products: Lexus IS Total Investment: 30 billion ye
Slide 21: FY2006 Consolidated Prospects: Vehicle Unit Sales
FY2006 Consolidated Prospects: Vehicle Unit Sales (thousands of units) 7,970 8,030 (+622) 8,000 7,408 1,120 1,110 (+166) 7,000 944 890 900 ( +67) 6,000 833 1,040 1,040 ( +61) 5,000 979 4,000 2,271 2,500 2,550 (+279) 3,000 2,000 1,000 2,381 2,420 2,430 ( +49) 0 04/4-05/3Actual 05/4-06/3 Prospects (as
Slide 22: 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) (+312.8) (+64.2) (+44.9) Consolidated 1,400.0 840.0 800.0 (+165.0) (+31.6) Japan 840.0 520.0 (+96.3) (+7.0) North America 250.0 160.0
Slide 23: FY2006 Toyota's Operations Prospects
FY2006 Toyota’s Operations Prospects (Toyota and Lexus) FY2006 Prospects FY2005 (’05/4-’06/3) (’04/4-’05/3) thousands of units thousands of units Automotive Japan 3,880 3,749 Production Overseas 3,760 3,127 Sales (Japan) 1,830 1,805 Exports 2,100 1,982 Sales (Overseas) 5,700 5,044 Units Units Housin
Slide 24: FY2006 Unconsolidated Prospects (Japan GAAP)
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 10,100.0 9,218.3 881.7 Operating Income 750.0 701.3 48.7 Ordinary Income 980.0 856.2 123.8 Net Income 670.0 529.3 140.7 Exchange Rat
Slide 25: FY2006 1H Financial Results
FY2006 1H Financial Results Six months ended September 30, 2005 - prepared in accordance with U.S. GAAP - Toyota Motor Corporation November 4, 2005 25