Toyota Motor Corp. · TSE:7203
Toyota Motor — H1 FY2007 Earnings Presentation
29 slides from Toyota Motor's earnings presentation, Nov 7, 2006
Slide 1: FY2007 Semi-Annual Financial Results
FY2007 Semi -Annual Financial Results - prepared in accordance with U.S. GAAP - Toyota Motor Corporation November 7, 2006
Slide 2: Cautionary Statement with Respect to Forward-Looking Statements
Cautionary Statement with Respect to Forward-Looking Statements 2 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
Slide 3: Caution concerning Insider Trading
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
Slide 4: Takeshi Suzuki
Takeshi Suzuki Senior Managing Director
Slide 5: Consolidated Vehicle Sales
Consolidated Vehicle Sales 5 (thousands of vehicles) 4,145 ( + 312) 4,000 3,833 637 ( + 81) 556 382 ( - 66) 3,000 448 589 ( + 91) 498 2,000 1,245 1,464 ( + 219) Other Asia 1,000 Europe 1,086 1,073 ( - 13) N. America Japan 0 '05/4-9 '06/4-9 Figures in parenthesis show year-on-year change
Slide 6: Consolidated Financial Summary (1H)
Consolidated Financial Summary (1H) 6 (billions of yen,%) FY2007 1H FY2006 1H Change （’06/4-9） （’05/4-9） Net Revenues 11,471.8 9,953.1 1,518.7 15.3% Operating Income 1,093.4 809.4 284.0 35.1% Income before income taxes, minority interest and equity earnings of affiliated companies 1,166.1 855.9 310.
Slide 7: Contributing Factors to Consolidated Operating Income
Contributing Factors to Consolidated Operating Income 7 (billions of yen) Cost Reduction Marketing Efforts 1,093.4 Efforts +40.0 Increase in Expenses -96.0 +150.0 (+284.0) 1,100 R&D Expenses -20.1 Depreciation and CAPEX related costs -33.6 1,000 Labor Costs -25.9 Expenses related to business expansi
Slide 8: Geographic Operating Income: Japan
Geographic Operating Income: Japan 8 2,493 2,450 800 2,191 690.0 684.4 600 400 385.9 1,278 200 1,086 1,073 0 '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) ・ High level of prod
Slide 9: Geographic Operating Income: North America
Geographic Operating Income: North America 9 1,464 1,311 400 1,245 300 268.5 250.5 227.1 200 100 0 '05/4-9 '05/10-'06/3 '06/4-9 Operating Income (billions of yen) Consolidated Vehicle Sales (thousands of vehicles) ・ Very strong sales continue - brisk demand for new models & compact cars ・ Finance bu
Slide 10: Geographic Operating Income: Europe
Geographic Operating Income: Europe 10 589 525 498 80 66.0 60 53.8 40.1 40 20 0 '05/4-9 '05/10-'06/3 '06/4-9 Operating Income (billions of yen) Consolidated Vehicle Sales (thousands of vehicles) ・ Increasing profit due to strong sales of RAV4 & Yaris
Slide 11: Geographic Operating Income: Asia
Geographic Operating Income: Asia 11 448 432 382 80 75.4 70.1 61.3 60 40 20 0 '05/4-9 '05/10-'06/3 '06/4-9 Operating Income (billions of yen) Consolidated Vehicle Sales (thousands of vehicles) ・ Decreased sales due to weak market in Indonesia and Taiwan ・ Strong sales of IMV exports to regions outsi
Slide 12: Geographic Operating Income: Others
Geographic Operating Income: Others 12 637 595 50 556 40 36.2 36.1 31.0 30 20 10 0 '05/4-9 '05/10-'06/3 '06/4-9 Operating Income (billions of yen) Consolidated Vehicle Sales (thousands of vehicles) ・ Continued strong sales driven by IMV
Slide 13: Business Segment: Financial Services
Business Segment: Financial Services 13 120 100 83.5 79.9 80 72.3 60 40 20 0 '05/4-9 '05/10-'06/3 '06/4-9 Operating Income (billions of yen) ・ Profit has improved due to growth in captive finance balance ・ 4.8 billion yen non-cash valuation loss on interest rate swaps
Slide 14: Equity Earnings of Affiliated Companies
Equity Earnings of Affiliated Companies 14 100 93.6 89.4 80 70.7 60 40 20 0 '05/4-9 '05/10-'06/3 '06/4-9 Equity earnings of affiliated companies (billions of yen) ・ Strong performance led by Toyota group companies in Japan
Slide 15: Unconsolidated Financial Summary (Japan GAAP)
Unconsolidated Financial Summary (Japan GAAP) 15 (billions of yen,%) FY2007 1H FY2006 1H Change (’06/4-9) (’05/4-9) Net Revenues 5,470.3 4,664.0 806.3 17.3% Operating Income 571.0 297.6 273.4 91.8% Ordinary Income 778.2 416.6 361.6 86.8% Net Income 525.8 283.6 242.2 85.4%
Slide 16: Contributing Factors to Unconsolidated Operating Income
Contributing Factors to Unconsolidated Operating Income 16 (billions of yen) Cost Reduction Efforts 571.0 600 +30.0 (+273.4) Marketing Efforts +90.0 500 Increase in Expenses -6.6 R&D Expenses -18.1 Depreciation and 400 CAPEX related costs -8.1 Effects of Other Expenses +19.6 favorable FOREX Rates +1
Slide 17: Shareholder Return – Interim Dividend
Shareholder Return – Interim Dividend 17 Interim Dividend: 50 yen per share (change: +15 yen) Total Amount of Payout: 160.8 billion yen Consolidated Payout Ratio 90 : 20.7% (change: +0.7%) 65 45 50 36 24 25 28 35 20 25 11 11 14 16 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
Slide 18: Shareholder Return – Repurchase of Shares
Shareholder Return – Repurchase of Shares 18 Enabling Amount (maximum limitation) 200 billion yen/30 million shares Current Share buyback 150 billion yen/20 million shares Share buyback over the last 10 years (billions of yen) 453.5 398.8 400 300 263.6 277.5 266.2 200 162.5 134.3 133.6 106.4 100 45.
Slide 19: FY2007 2H Key Activities
FY2007 2H Key Activities Global Core Model, Corolla Lexus LS Global Launch All New Tundra Guangzhou plant – 2 Shift Operation
Slide 20: Global Core Model, Corolla
Global Core Model, Corolla 20 Corolla AXIO Corolla Fielder Product Production Marketing Development Efficient roll out of Corolla worldwide starting with Japan
Slide 21: Lexus LS Global Launch
Lexus LS Global Launch 21 Time Period Region ’06/7-9 ’06/10-12 ’07/1-3 ’07/4-6 Japan N. America Europe LS Asia Latin America Oceania LS-HV Sales are off to a good start in regions where LS has launched
Slide 22: All New Tundra
All New Tundra 22 TMMI change-over (Indiana) ’07/1 TMMTX start-up (Texas) ’06/11 All New Tundra Targeted marketing strategy to penetrate full-size pickup truck segment
Slide 23: Guangzhou plant – 2 Shift Operation
Guangzhou plant – 2 Shift Operation 23 2002 2003 2004 2005 2006 Changchun Manufacturing Land Cruiser & Prius Sites Coaster Tianjin #1 Vios Vios & Corolla Tianjin #2 Prado FAW alliance Crown & Reiz Land Cruiser Corolla Sichuan Coaster & Prado Crown Guangzhou Motors alliance Reiz Guangzhou (100 – 200K
Slide 24: Consolidated Prospects: Vehicle Sales
Consolidated Prospects: Vehicle Sales 24 (thousands of units) 8,470 ( + 496) 8,450 7,974 8,000 1,260 1,250 ( + 109) 1,151 7,000 770 ( - 110) 850 6,000 880 1,210 ( + 187) 1,160 1,023 5,000 4,000 2,556 2,870 2,800 ( + 314) Other 3,000 Asia Europe 2,000 N. America 1,000 2,364 2,360 Japan 2,390 ( - 4) 0
Slide 25: FY2007 Consolidated Prospects
FY2007 Consolidated Prospects 25 (billions of yen,%) FY2007 FY2006 Change （’06/4-’07/3） （’05/4-’06/3） Net Revenues 23,200.0 21,036.9 2,163.1 10.3% Operating Income 2,200.0 1,878.3 321.7 17.1% Income before income taxes, minority interest and equity earnings of affiliated companies 2,300.0 2,087.3 21
Slide 26: FY2007 Consolidated Prospects: CAPEX, Depreciation, R&D
FY2007 Consolidated Prospects: CAPEX, Depreciation, R&D 26 (billions of yen,%) Capital Depreciation Expenditure Expenses R&D Expenses Consolidated 1,550.0 ( + 21.2) 930.0 ( + 38.6) 890.0 ( + 77.4) Japan 850.0 ( - 59.3) 590.0 ( + 21.1) N.America 330.0 ( + 59.7) 165.0 ( - 0.1) Europe 130.0 ( - 0.5) 80
Slide 27: FY2007 Unconsolidated Prospects (Japan GAAP)
FY2007 Unconsolidated Prospects (Japan GAAP) 27 (billions of yen,%) FY2007 FY2006 Change (’06/4-’07/3) (’05/4-’06/3) Net Revenues 11,400.0 10,191.8 1,208.2 11.8% Operating Income 1,130.0 847.9 282.1 33.3% Ordinary Income 1,520.0 1,104.7 415.3 37.6% Net Income 1,030.0 765.9 264.1 34.5%
Slide 28: FY2007 Operations Prospects
FY2007 Operations Prospects 28 FY2007 FY2006 (’06/4-’07/3) (’05/4-’06/3) (Thousands of units) (Thousands of units) Automotive Japan 4,240 3,863 Production Overseas Overseas 3,920 3,731 Total 8,160 7,594 Sales (Japan) 1,750 1,769 Exports 2,520 2,126 Sales (Overseas) 6,320 5,664 Housing Sales 5,000 un
Slide 29: FY2007 Semi-Annual Financial Results
FY2007 Semi -Annual Financial Results Toyota Motor Corporation November 7, 2006