Toyota Motor Corp. · TSE:7203
Toyota Motor — FY2007 Earnings Presentation
34 slides from Toyota Motor's earnings presentation, May 9, 2007
Slide 1: FY2007 Financial Results
FY2007 Financial Results - prepared in accordance with U.S. GAAP - Toyota Motor Corporation May 9, 2007
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, Senior Managing Director
Takeshi Suzuki Senior Managing Director
Slide 5: Consolidated Vehicle Sales
Consolidated Vehicle Sales 5 (thousands of vehicles) 8,524 (+ 550) 8,000 7,974 1,296 (+ 145) 1,151 789 (- 91) 880 6,000 1,224 (+ 201) 1,023 4,000 2,556 2,942 (+ 386) Other Asia Europe N. America 2,000 Japan 2,364 2,273 (- 91) 0 '05/4-'06/3 '06/4-'07/3 Figures in parenthesis represent year-on-year ch
Slide 6: Consolidated Financial Summary
Consolidated Financial Summary 6 (year-on-year change) Net Revenues 23.9480 trillion yen (+ trillion yen (+ 13.8%) 13.8%) Operating Income 2.2386 trillion yen (+ trillion yen (+ 19.2%) 19.2%) Net Income 1.6440 trillion yen (+ trillion yen (+ 19.8%) 19.8%) Highlights - Significant increase in revenue
Slide 7: Business Environment
Business Environment 7 Raw Material Environment Energy Sources & Safety -Challenging supply / - Stringent Regulations - Limited availability of demand balance - Customer needs fossil fuels - Rising prices - Development of alternative fuels Product Quality Overseas Emerging Markets Production - Longe
Slide 8: Growth Philosophy
Growth Philosophy 8 Stable & Long-term Growth Growth Drivers Take-in Technology Opportunities Products Full-line & All Regions Production Marketing & Supply Risks Product Quality / Costs Human Resources Avoid or Absorb For Continued Growth Quality Improvement Solid Foundation
Slide 9: Main Action Plans
FY2007/FY2008 Main Action Plans North America – Product Enhancement & Localization of Production China – Rapid Establishment of Local Operations Global Core Models – Worldwide Launch VI Activities – Implementation Technology – Development of Future Growth Areas
Slide 10: North America – Product Enhancement & Localization of Production
North America – Product Enhancement & Localization of Production 10 FY2007 FY2008 - Start of Texas plant - Subaru of Indiana Automotive starting production - New Tundra completing full line-up - Preparation for new plant in Canada and Mississippi Quality Improvement -Strengthen product line-up -“Bui
Slide 11: China – Rapid Establishment of Local Operations
China – Rapid Establishment of Local Operations 11 FY2007 FY2008 - Guangzhou Camry: Start of production - Tianjin NG Corolla: Start of production - Network expansion of 3 dealer channels Quality Improvement - Incorporation of local requirements in global models and smooth start-up - Rapid expansion
Slide 12: Global Core Models – Worldwide Launch
Global Core Models – Worldwide launch 12 FY2007 FY2008 Camry Taiwan, Australia, Thailand, China Russia Corolla Japan, UK, Turkey China, South Africa, Taiwan, Auris Thailand, Brazil, etc. Quality Improvement - Global sharing of production design, production facilities and marketing tools - Concentrat
Slide 13: VI Activities – Implementation
VI Activities – Implementation 13 FY2007 FY2008 - Identification through 2010 Models - Start of Implementation - Inclusion of Material-focused Activities - Emphasis on vehicles produced overseas and compact vehicles Quality Improvement Focus on activities for vehicles produced overseas and compact v
Slide 14: Technology – Development of Future Growth Areas
Technology – Development of Future Growth Areas 14 - Environmental Technology - Safety Technology (fuel efficiency, CO2 , emissions) (advanced technology application to - Next Generation HV products) - Alternative Fuel Vehicles(bio fuels, electricity, hydrogen) - Low Cost Technology Quality Improvem
Slide 15: Consolidated Financial Summary
Consolidated Financial Summary 15 (trillions of yen) FY2007 FY2006 Change (’06/4-’07/3) (’05/4-’06/3) Net Revenues 23.9480 21.0369 2.9111 13.8% Operating Income 2.2386 1.8783 0.3603 19.2% Income before income taxes, minority interest and equity earnings of affiliated companies 2.3825 *2.0873 0.2952
Slide 16: Contributing Factors to Consolidated Operating Income
Contributing Factors to Consolidated Operating Income 16 Cost Reduction Efforts (billions of yen) 2,238.6 Marketing Efforts + 100.0 + 330.0 (+ 360.3) 2,250.0 Increase in Expenses - 359.7 2,000.0 1,878.3 1,750.0 Effects of favorable 1,500.0 FOREX rates + 290.0 1,250.0 '05/4-'06/3 '06/4-'07/3 <Details
Slide 17: Geographic Operating Income: Japan
Geographic Operating Income: Japan 17 (billions of yen) 1,316 1,319 1,331 1,231 1,219 1,177 1,123 1,068 408.9 391.4 389.3 400 383.5 281.1 293.0 188.4 197.5 707 659 200 571 550 536 543 530 541 ’05/4-’06/3 ’06/4-’07/3 1,075.9 1,457.2 0 '05/4-6 '05/7-9 '05/10-12 '06/1-3 '06/4-6 '06/7-9 '06/10-12 '07/1-
Slide 18: Geographic Operating Income: North America
Geographic Operating Income: North America 18 (billions of yen) 764 747 717 714 668 641 643 200 604 137.8 140.1 130.7 127.8 110.4 100.0 100 99.3 99.1 ’05/4-’06/3 ’06/4-’07/3 495.6 449.6 0 '05/4-6 '05/7-9 '05/10-12 '06/1-3 '06/4-6 '06/7-9 '06/10-12 '07/1-3 Operating Incom e (billions of yen) Consolid
Slide 19: Geographic Operating Income: Europe
Geographic Operating Income: Europe 19 (billions of yen) 329 308 306 50 279 281 256 246 242 36.5 34.8 36.5 27.2 29.5 26.6 25 23.4 16.7 ’05/4-’06/3 ’06/4-’07/3 93.9 137.3 0 '05/4-6 '05/7-9 '05/10-12 '06/1-3 '06/4-6 '06/7-9 '06/10-12 '07/1-3 Operating Incom e (billions of yen) Consolidated Vehicle Sal
Slide 20: Geographic Operating Income: Asia
Geographic Operating Income: Asia 20 (billions of yen) 204 203 50 229 193 189 219 217 215 39.8 38.6 35.6 31.5 30.0 31.3 28.1 28.2 25 ’05/4-’06/3 ’06/4-’07/3 145.5 117.6 0 '05/4-6 '05/7-9 '05/10-12 '06/1-3 '06/4-6 '06/7-9 '06/10-12 '07/1-3 Operating Incom e (billions of yen) Consolidated Vehicle Sale
Slide 21: Geographic Operating Income: Other
Geographic Operating Income: Other 21 (billions of yen) 337 340 40 319 303 292 300 272 284 31.0 19.2 20.2 20 17.0 16.3 15.9 16.4 14.7 ’05/4-’06/3 ’06/4-’07/3 67.2 83.5 0 '05/4-6 '05/7-9 '05/10-12 '06/1-3 '06/4-6 '06/7-9 '06/10-12 '07/1-3 Operating Incom e (billions of yen) Consolidated Vehicle Sales
Slide 22: Business Segment: Financial Services
Business Segment: Financial Services 22 (billions of yen) 46.8 47.7 43.8 39.7 41.3 40 37.3 32.2 25.5 20 ’05/4-’06/3 ’06/4-’07/3 155.8 158.5 0 '05/4-6 '05/7-9 '05/10-12 '06/1-3 '06/4-6 '06/7-9 '06/10-12 '07/1-3 Operating Incom e (billions of yen) - Profit increased as balance of finance steadily grew
Slide 23: Equity Earnings of Affiliated Companies
Equity Earnings of Affiliated Companies 23 (billions of yen) 66.1 56.2 54.0 50 45.8 47.8 35.6 35.1 33.2 ’05/4-’06/3 ’06/4-’07/3 164.3 209.5 China 11.1 (included) China 24.1 (included) 0 '05/4-6 '05/7-9 '05/10-12 '06/1-3 '06/4-6 '06/7-9 '06/10-12 '07/1-3 Equity Earnings of Affiliated Com panies (bill
Slide 24: FY2007 Consolidated CAPEX, Depreciation, R&D
FY2007 Consolidated CAPEX, Depreciation, R&D 24 (billions of yen) Capital Depreciation Expenditure Expenses R&D Expenses Consolidated 1,482.6 (- 46.2) 947.0 (+ 55.6) 890.7 (+ 78.1) Japan 815.3 (- 94.0) 592.5 (+ 23.6) N. America 319.3 (+ 49.0) 165.3 (+ 0.2) Europe 119.7 (- 10.8) 89.5 (+ 13.6) Asia 14
Slide 25: Unconsolidated Financial Summary (Japan GAAP)
Unconsolidated Financial Summary (Japan GAAP) 25 (trillions of yen) FY2007 FY2006 Change (’06/4-’07/3) (’05/4-’06/3) Net Revenues 11.5718 10.1918 1.3800 13.5% Operating Income 1.1509 0.8479 0.3030 35.7% Ordinary Income 1.5551 1.1047 0.4504 40.8% Net Income 1.0601 0.7659 0.2942 38.4%
Slide 26: Contributing Factors to Unconsolidated Operating Income
Contributing Factors to Unconsolidated Operating Income 26 (billions of yen) Cost Reduction + 70.0 1,150.9 1,200.0 Marketing Efforts + 160.0 (+ 303.0) 1,000.0 Increase in Expenses - 187.0 847.9 800.0 Effects of favorable FOREX rates + 260.0 600.0 '05/4-'06/3 '06/4-'07/3 <Details of Increases in Expe
Slide 27: Consolidated Prospects: Vehicle Sales
Consolidated Prospects: Vehicle Sales 27 (thousands of vehicles) 8,524 8,890 (+ 366) 8,000 1,420 (+ 124) 1,296 789 890 (+ 101) 6,000 1,224 1,270 (+ 46) 4,000 Other 2,942 2,990 (+ 48) Asia Europe N. America 2,000 Japan 2,273 2,320 (+ 47) 0 '06/4-'07/3 '07/4-'08/3 Figures in parenthesis represent year
Slide 28: FY2008 Consolidated Prospects
FY2008 Consolidated Prospects 28 (trillions of yen) FY2008 FY2007 Change (’07/4-’08/3) (’06/4-’07/3) Net Revenues 25.0000 23.9480 1.0520 4.4% Operating Income 2.2500 2.2386 0.0114 0.5% Income before income taxes, minority interest and equity earnings of affiliated companies 2.4000 2.3825 0.0175 0.7%
Slide 29: FY2008 Consolidated CAPEX, Depreciation, R&D
FY2008 Consolidated CAPEX, Depreciation, R&D 29 (billions of yen) Capital Depreciation Expenditure Expenses R&D Expenses Consolidated 1,500.0 (+ 17.4) 1,020.0 (+ 73.0) 940.0 (+ 49.3) Japan 800.0 (- 15.3) 630.0 (+ 37.5) N. America 400.0 (+ 80.7) 190.0 (+ 24.7) Europe 110.0 (- 9.7) 90.0 (+ 0.5) Asia 1
Slide 30: FY2008 Unconsolidated Prospects
FY2008 Unconsolidated Prospects 30 (trillions of yen) FY2008 FY2007 Change (’07/4-’08/3) (’06/4-’07/3) Net Revenues 11.7000 11.5718 0.1282 1.1% Operating Income 1.1000 1.1509 - 0.0509 - 4.4% Ordinary Income 1.5900 1.5551 0.0349 2.2% Net Income 1.1300 1.0601 0.0699 6.6%
Slide 31: Shareholder Return
Shareholder Return 31 Dividend : 120 yen per share (year-on-year change 30 yen up) Total Amount of Payout : 384.6 billion yen Consolidated Payout Ratio : 23.4％ 120 (year-on-year change +2.1％) 90 70 65 55 45 36 40 24 25 28 25 20 50 13 14 14 35 16 20 25 11 11 14 99/4-00/3 00/4-01/3 01/4-02/3 02/4-03/3
Slide 32: Shareholder Return
Shareholder Return 32 Share Enabling Amount 250 billion yen Buyback (maximum limitation) 30 million shares Share buyback over the last 10 years (billions of yen) 453.4 398.8 400 299.5 300 263.6 277.5 266.2 200 134.3 133.6 106.4 100 45.4 0 97/4-98/3 98/4-99/3 99/4-00/3 00/4-01/3 01/4-02/3 02/4-03/3 0
Slide 33: FY2008 Toyota's Operations Prospects
FY2008 Toyota’s Operations Prospects 33 FY2008 FY2007 (’07/4-’08/3) (’06/4-’07/3) (thousands of vehicles) (thousands of vehicles) Japan 4,280 4,185 Automotive Production Overseas 4,380 3,939 Total 8,660 8,124 Sales 1,720 1,659 (Japan) Exports 2,590 2,597 Sales (Overseas) 6,900 6,443 Housing Sales 5,
Slide 34: FY2007 Financial Results
FY2007 Financial Results - prepared in accordance with U.S. GAAP - Toyota Motor Corporation May 9, 2007