Toyota Motor Corp. · TSE:7203

Toyota Motor — FY2018 Q2 Earnings Presentation

37 slides from Toyota Motor's earnings presentation, Nov 7, 2017

  1. Slide 1: FY2018 Second Quarter Financial Results

    FY2018 Second Quarter Financial Results LEXUS LS500h Toyota Motor Corporation November 7, 2017

  2. Slide 2: Cautionary Statement with Respect to Forward-Looking Statements

    Cautionary Statement with Respect to Forward-Looking Statements 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 f

  3. 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 To

  4. Slide 4: FY2018 Second Quarter Financial Results

    FY2018 Second Quarter Financial Results FY2018 Second Quarter Financial Performance (FY2018 First Half) FY2018 Financial Forecasts

  5. Slide 5: Consolidated Vehicle Sales

    Consolidated Vehicle Sales (thousands of vehicles) FY2018 1H FY2018 2Q 5,000 4,363 4,389 (+26) 3,000 2,191 2,175 (-16) Japan 4,000 1,078 1,087 (+9) N. America 2,000 567 543 (-24) Europe 3,000 1,400 1,396 (-4) Asia 2,000 684 672 (-12) Other 434 469 (+35) 1,000 Central and 212 229 (+17) South America,

  6. Slide 6: Consolidated Financial Summary (FY2018 First Half)

    Consolidated Financial Summary (FY2018 First Half) (billions of yen) FY2018 1H FY2017 1H (’17/4-9) (’16/4-9) Change Net Revenues 14,191.2 13,070.5 +1,120.6 +8.6% Operating Income 1,096.5 1,116.8 -20.3 -1.8% Operating margin 7.7% 8.5% - - Income before income taxes and equity in earnings of affiliate

  7. Slide 7: Analysis of Consolidated Operating Income (FY2018 First Half)

    Analysis of Consolidated Operating Income (FY2018 First Half) (billions of yen) -110.0 Excluding the overall impact of foreign exchange rates and swap valuation gains/losses, etc. +100.0 160.0 Cost +100.0 1,116.8 Reduction 50.0 1,096.5 Effects of 10.3 Efforts Effects of Marketing Increase in Other *

  8. Slide 8: Geographic Operating Income Japan

    Geographic Operating Income Japan Operating Income (billions of yen) * Consolidated Vehicle Sales (thousands of vehicles) FY2017 1H Operating Income* 641.7 billion yen * Excluding Valuation Gains/Losses from Interest Rate Swaps, etc. (+156.0 billion yen year on year) FY2018 1H FY2018 2Q Increased ma

  9. Slide 9: Geographic Operating Income North America

    Geographic Operating Income North America Operating Income (billions of yen) * Consolidated Vehicle Sales (thousands of vehicles) FY2017 1H Operating Income* * Excluding Valuation Gains/Losses from Interest Rate Swaps, etc. 141.1 billion yen (-155.6 billion yen year on year) FY2018 1H FY2018 2Q Decl

  10. Slide 10: Geographic Operating Income Europe

    Geographic Operating Income Europe Operating Income (billions of yen) * Consolidated Vehicle Sales (thousands of vehicles) FY2017 1H Operating Income* * Excluding Valuation Gains/Losses from Interest Rate Swaps, etc. 39.0 billion yen (+4.4 billion yen year on year) FY2018 1H FY2018 2Q Increased most

  11. Slide 11: Geographic Operating Income Asia

    Geographic Operating Income Asia Operating Income (billions of yen) * Consolidated Vehicle Sales (thousands of vehicles) FY2017 1H Operating Income* * Excluding Valuation Gains/Losses from Interest Rate Swaps, etc. 212.9 billion yen (-6.7 billion yen year on year) FY2018 1H FY2018 2Q Decreased mainl

  12. Slide 12: Geographic Operating Income: Central & South America, Oceania, Africa and The Middle East

    Central & South America, Geographic Operating Income : Oceania, Africa and The Middle East Operating Income (billions of yen) * Consolidated Vehicle Sales (thousands of vehicles) FY2017 1H Operating Income* * Excluding Valuation Gains/Losses from Interest Rate Swaps, etc. 71.8 billion yen (+16.6 bil

  13. Slide 13: Financial Services Operating Income

    Financial Services Operating Income Operating Income (billions of yen)* * Excluding Valuation Gains/Losses FY2018 1H FY2018 2Q from Interest Rate Swaps, etc. 138.1 144.0 56.5 68.8 +5.8 +12.3 ’16/4-9 ’17/4-9 Change ’16/7-9 ’17/7-9 Change Operating Income 152.1 144.7 -7.4 61.9 69.4 +7.4 Valuation Gain

  14. Slide 14: Shareholder Return: Interim Dividend

    1 Shareholder Return* Interim Dividend 100 yen per common share (Total Amount of Payment 293.4 billion yen, Payout Ratio*2 27.8%) Dividend per Share Net Income Dividend per Share and Net Income (billions of yen) (yen) Interim Dividend Year-end Dividend Net Income (Right axis) 2,500 250 2,000 200 110

  15. Slide 15: Shareholder Return: Share Repurchase

    Shareholder Return Share Repurchase (max) 250.0 billion yen/45 million shares (Repurchase Program to be implemented from November 14, 2017 to March 30, 2018) (billions of yen) 1,000 10,000 For Shareholder Return(Interim) 900 9,000 For Shareholder Return(Year-end) Together with the 297.1 billion yen

  16. Slide 16: FY2018 Second Quarter Financial Results

    FY2018 Second Quarter Financial Results FY2018 Second Quarter Financial Performance (FY2018 First Half) FY2018 Financial Forecasts

  17. Slide 17: FY2018 Forecasts: Consolidated Vehicle Sales

    FY2018 Forecasts: Consolidated Vehicle Sales (thousands of vehicles) 10,000 8,900 8,950 (+50) 8,971 2,274 Japan 8,000 2,250 2,260 (+10) N. America Europe 6,000 Asia 2,780 2,790 (+10) 2,837 Other 4,000 Central and 925 South America, 940 970 (+30) Oceania, Africa, 2,000 1,560 1,550 (-10) 1,588 The Mid

  18. Slide 18: FY2018 Forecasts: Consolidated Financial Summary

    FY2018 Forecasts: Consolidated Financial Summary (billions of yen) New Forecasts Previous Forecasts FY2017 Results (’17/4-’18/3) (’17/4-’18/3) Change (’16/4-’17/3) Net Revenues 28,500.0 28,500.0 0 27,597.1 Operating Income 2,000.0 1,850.0 +150.0 1,994.3 Operating margin 7.0% 6.5% - 7.2% Income befor

  19. Slide 19: Analysis of FY2018 Forecasts: Operating Income (vs. Previous Forecasts)

    Analysis of FY2018 Forecasts: Consolidated Operating Income (vs. Previous Forecasts) (billions of yen) +85.0 Excluding the overall impact of foreign exchange rates and swap valuation gains/losses, etc. 2,000.0 0 +50.0 Other *4 +15.0 +20.0 Decrease in Marketing Cost Expenses, Efforts *2 +65.0 etc. *3

  20. Slide 20: Analysis of FY2018 Forecasts: Operating Income (vs. FY2017 Results)

    Analysis of FY2018 Forecasts: Consolidated Operating Income (vs. FY2017 Results) (billions of yen) -185.0 Excluding the overall impact of foreign exchange rates and swap valuation gains/losses, etc. +120.0 -210.0 1,994.3 +175.0 Cost -95.0 +15.7 2,000.0 Reduction Effects of Effects of Marketing Incre

  21. Slide 21: Activities for Enhancement of Competitiveness

    Activities for Enhancement of Competitiveness - Mazda, Denso and Toyota have decided to establish a new company in order to jointly develop basic structural technologies for EVs. - Promote projects for commercial use of FC. (studies with Seven-Eleven Japan to promote hydrogen utilization, developmen

  22. Slide 22: Toyota Investor Summit

    Toyota Investor Summit On September 28, the summit was held in Plano, Texas, at Toyota Motor North America’s new headquarters. *The full presentation video is available on our official website, “Toyota Global Newsroom”. https://newsroom.toyota.co.jp/en/detail/19030556/

  23. Slide 23: Manufacturing

    Manufacturing With TNGA (Toyota New Global Architecture), we pursue a fundamental change in vehicle performance and cost effectiveness as well as in design which appeals to people’s heart and head, which is FUN to drive. - LC500 realized a concept car design in an active production model. - Launched

  24. Slide 24: Next-generation Powertrains (Electrification)

    Next-generation Powertrains(Electrification) Create a wide portfolio of powertrains and work to make each one “best in class” to cope with various energy mixes and regulations in each country and region. - With Mazda and Denso, establish a new company which develops basic structural technologies for

  25. Slide 25: Connected Vehicles

    Connected Vehicles Connect cars and provide new services in ways we never imagined based on data collected from cars. - Toyota Connected, which was jointly established with Microsoft, is researching and developing new services using big data. - Begin verification testing on data collection from taxi

  26. Slide 26: Autonomous Driving / Artificial Intelligence (AI)

    Autonomous Driving / Artificial Intelligence (AI) - TRI*, by using artificial intelligence technologies, plays a key role in - working on a vast amount of research on autonomous cars, robotics - and new battery materials. - Based on the idea that data is the new “resource” and “wealth”, - take advan

  27. Slide 27: Toyota Investor Summit

    Toyota Investor Summit On September 28, the summit was held in Plano,Texas, at Toyota Motor North America’s new headquarters. *The full presentation video is available on our official website, “Toyota Global Newsroom”. https://newsroom.toyota.co.jp/en/detail/19030556/

  28. Slide 28: FY2018 Second Quarter Financial Results

    FY2018 Second Quarter Financial Results CAMRY Hybrid Toyota Motor Corporation November 7, 2017

  29. Slide 29: (Reference) Summaries of FY2018 Second Quarter Financial Results

    (Reference) Summaries of FY2018 Second Quarter Financial Results < FY 2018 First Half Financial Performance> - Consolidated vehicle sales were 4 million 389 thousand units. (+ 26 thousand units year on year) - Operating income was 1,096.5 billion yen. (- 20.3 billion yen year on year) - Decreased ma

  30. Slide 30: (Reference) Consolidated Financial Summary (FY2018 Second Quarter)

    (Reference) Consolidated Financial Summary (FY2018 Second Quarter) (billions of yen) FY2018 2Q FY2017 2Q (’17/7-9) (’16/7-9) Change Net Revenues 7,143.6 6,481.4 +662.1 +10.2% Operating Income 522.2 474.6 +47.6 +10.0% Operating margin 7.3% 7.3% - - Income before income taxes and equity in earnings of

  31. Slide 31: (Reference) Analysis of Consolidated Operating Income (FY2018 Second Quarter)

    (Reference) Analysis of Consolidated Operating Income (FY2018 Second Quarter) (billions of yen) -85.0 Excluding the overall impact of foreign exchange rates and swap valuation gains/losses, etc. +50.0 -130.0 Cost Reduction -5.0 -2.4 522.2 +135.0 Efforts Effects of Increase in Other *4 Marketing Expe

  32. Slide 32: (Reference) Equity in Earnings of Affiliated Companies

    (Reference) Equity in Earnings of Affiliated Companies (billions of yen) FY2018 1H FY2018 2Q 2,500 250 235.0 (+66.6) 100 97.2 (+18.8) 2,000 200 168.3 78.3 Japan 1,500 150 161.0 (+63.9) 62.5 (+20.5) China 97.0 41.9 1,000 100 50 Other 500 50 54.5 53.9 (-0.6) 26.8 23.3 (-3.5) 16.8 20.1 (+3.2) 9.5 11.3

  33. Slide 33: (Reference) Liquid Assets (Excluding Financial Services)

    (Reference) Liquid Assets (Excluding Financial Services) Net Liquid Assets as of September 30, 2017 : 7,893.4 billion yen (+130.3 billion yen compared to March 31, 2017) (billions of yen) 〔Compared to March 31, 2017〕 Free Cash Flow (total) : +931.5 9,306.7 +107.2 +448.8 -484.8 1,413.3 Depreciation C

  34. Slide 34: (Reference) Shareholder Return

    (Reference) Shareholder Return FY2018 FY2017 (Actual) 293.4 billion yen 300.3 billion yen Dividends on Common Shares (100 yen per share) (100 yen per share) Dividends on First Series 3.7 billion yen 2.4 billion yen Model AA Class Shares (79 yen per share) (52.5 yen per share) Total Amount of Dividen

  35. Slide 35: (Reference) FY2018 Consolidated Forecasts: R&D, CAPEX, Depreciation

    (Reference) FY2018 Consolidated Forecasts: R&D, CAPEX, Depreciation (billions of yen) R&D Expenses Capital Expenditures 1,300 Depreciation Expenses 1,200 950.0 885.1 893.2 1,100 806.2 775.9 1,000 1,292.5 1,280.0 900 1,211.8 1,055.6 1,037.5 1,060.0 1,177.4 800 1,004.5 1,000.7 910.5 700 0 FY2014 FY201

  36. Slide 36: (Reference) FY2018 Forecasts: Vehicle Production and Retail Sales

    (Reference) FY2018 Forecasts: Vehicle Production and Retail Sales (thousands of vehicles) New Forecasts Previous Forecasts Change (’17/4-’18/3) (’17/4-’18/3) T Japan 3,180 3,180 0 o Vehicle y Production* 1 Overseas 5,770 5,720 +50 o t Total 8,950 8,900 +50 a & Japan 1,580 1,580 0 L Retail 2 * Vehicl

  37. Slide 37: (Reference) Definitions of Consolidated and Retail Vehicle Sales

    (Reference) Definitions of Consolidated and Retail Vehicle Sales Daihatsu- and Hino- brand vehicles Consolidated Vehicle Sales Distributors or Dealers outside consolidation Total Retail Vehicle Sales Customers Toyota- and Lexus- brand vehicles Toyota and Lexus Vehicle Sales P5,P17 Number of vehicles

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