Toyota Motor Corp. · TSE:7203
Toyota Motor — 2007 Tokyo Motor Show Investors Conference
31 slides from Toyota Motor's conference presentation, Oct 22, 2007
Slide 1: Tokyo Motor Show Investors Conference
2007 Tokyo Motor Show Investors Conference Toyota Motor Corporation October 22, 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 othe
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: Mitsuo Kinoshita, Executive Vice President and CFO
Mitsuo Kinoshita Executive Vice President and CFO
Slide 5: Agenda
Agenda 5 Growth Philosophy Building a Solid Foundation Growth Drivers Sales Plan Shareholder Return
Slide 6: Growth Philosophy
Growth Philosophy 6 Quality Improvement Long-term and Stable Growth Growth Drivers Take-in Technology Products Opportunities Production Sales Full-line & All Regions & Supply & Marketing Risks Product Quality / Cost Human Resources Avoid
Slide 7: Solid Foundation
Solid Foundation 7 Technology Production Sales & Supply & Marketing Product Quality / Cost Human Resources
Slide 8: Product Quality
1 Product Quality 8 Product Quality Cost Human Resources CF=Customer First CF Activity CF Activity Promotion Committee Design Manufacturing Suppliers After Sales Group-wide Activity “Built-in Quality with Ownership” Trend of Quality Issue Significant Quality after Initial improvement in Period of Us
Slide 9: Cost
2 Cost 9 Product Quality Cost Human Resources Value Innovation (VI) Activity ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 Model based ’08 Model Idea Design System based Focus on : - Overseas ’09 Model Idea Design Production ’10 Model - Compact Vehicles - Raw Material ’11 Model Design ’12 Model Idea Promote VI ac
Slide 10: Human Resources
3 Human Resources 10 Product Quality Cost Human Resources Global Promotion of Self-Reliance # of supporting staff from Japan Japan: Changeover of Corolla New Plant Preparation Explicit Knowledge of 100 100 business conduct (=Toyota Way) -50% Improve capacity -70% expand of overseas 50 50 Overseas: o
Slide 11: Growth Drivers
Growth Drivers 11 Technology Production Sales & Supply & Marketing Product Quality / Cost Human Resources
Slide 12: Technology: Challenges for Sustainable Mobility
1 Technology 12 Challenges for Sustainable Mobility Technology CO2 Reduction Fuel Efficiency Alternative Energy Sources Engine Redesign all to improve Transmission environmental performance ( -2010) Production & Supply Strengthen line-up (Joint development of 1.6L with Isuzu) Diesel Further reduce e
Slide 13: Technology: Next Generation Environmental Technology
1 Technology 13 Challenges for Sustainable Mobility Technology Stronger need for next generation environmental technology ( Hybrid System / Engine / Transmission ) Production Early commercialization with state of the art environmental technologies & Supply Production Design & Marketing Technology Sa
Slide 14: Technology: New Concept Cars
1 Technology 14 Challenges for Sustainable Mobility Technology Propose New Concept Cars for the Development of Attractive Models Production [1/X] & Supply 1/X LF-Xh [RiN] LEXUS Specialty SUV [LF-Xh] RiN & Marketing iQ CONCEPT Sales i-REAL [iQ CONCEPT] [i-REAL]
Slide 15: R&D Expense
1 Technology 15 R&D Expense Technology (billion yen) 1,000 940.0 890.7 812.6 800 755.1 668.4 682.2 Production & Supply 600 400 & Marketing 200 Sales 0 '03/3 '04/3 '05/3 '06/3 '07/3 '08/3 (Estimate)
Slide 16: Production & Supply
2 Production & Supply 16 Technology [Takaoka Plant] [Motomachi Plant] Development of Production Operation of & Supply Next Generation Technology New Production Line (8/’07 -) (’09- ) Transfer Efficiently support technology other plants’ operation & Marketing to other Production System Sales plants b
Slide 17: Capital Expenditure
2 Production & Supply 17 Capital Expenditure Technology (billion yen) 1,528.8 1,482.6 1,500.0 1,500 1,087.2 999.0 957.7 Production 1,000 & Supply 500 & Marketing Sales 0 '03/3 '04/3 '05/3 '06/3 '07/3 '08/3 (Estimate)
Slide 18: Regionally Balanced Growth
3 Marketing 18 Regionally Balanced Growth Technology Change in Geographical Composition (Retail sales, including Hino & Daihatsu) 14.2% 26.9% Production 13.4% & Supply 12.1% 10.3% 34.0% 10.6% 13.2% 6.8% 32.3% 13.0% 12.2% 40.2% 30.6% & Marketing 30.2% 2006 Sales 2003 8.81 million vehicles 2000 6.79 m
Slide 19: Strategy by Region - Japan
3 Marketing 19 Strategy by Region -Japan Technology Introduce attractive products to create new markets Production & Supply Blade IS F Mark X Zio Vanguard Corolla Rumion Ist Land Cruiser & Marketing Introduce new models Aim to revitalize Sales Build social infrastructure to support use of automobile
Slide 20: Strategy by Region - North America
3 Marketing 20 Strategy by Region -North America Technology Introduce attractive products to create new markets Launch of New Tundra in ’07 Successful entry into full-size pick-up truck market Production & Supply Enhance Lineup Tundra Aim to grow in all product categories & Marketing Sales Prius Sci
Slide 21: Strategy by Region - Europe
3 Marketing 21 Strategy by Region -Europe Technology Introduce attractive products to create new markets Promote sales of core models Production & Supply Aygo Yaris Auris Avensis Reinforce response to the CO2 reduction - Innovative compact model - Expand diesel line-up - Promote sales of HVs & Marke
Slide 22: Strategy by Region - China
3 Marketing 22 Strategy by Region -China Technology Aim to further increase profits by expanding sales networks and local manufacturing Change of Sales Volume / Operating Income (billion yen) Production & Supply Guangzhou e eas 40 Tianjin #3 In cr Tianjin #2 s Approx. Sale (thousands 430 20 of vehic
Slide 23: Strategy by Region - Emerging Markets
3 Marketing 23 Strategy by Region -Emerging Markets Technology Thoroughly respond to local needs Russia Brazil India Market Change Segment where (K vehicles) (K vehicles) Production Toyota is (K vehicles) Segment where & Supply Toyota is represented Segment where 1500 represented 1500 1500 Toyota is
Slide 24: Strategy by Brand - Lexus
3 Marketing 24 Strategy by Brand -Lexus Technology Increase Sales by Improving Lineup 5/’07 Flagship Model Change in Vehicle Sales (K vehicles) 510 480 Production 500 & Supply Improve line-up 390 steadily 400 300 2005 2006 2007 2008 2009 LS600hL (plan) (plan) (plan) The Number of Countries/Areas Whe
Slide 25: Financial Services
3 Marketing 25 Financial Services Technology Cooperate with dealers and support vehicle sales Promote various marketing Operating Income from Financial Service Sector programs & strengthen customer-retention (billion yen) Production & Supply 200 Further profit increase 150 Cover 32 100 Countries/are
Slide 26: Financial Services: Assets and Funding
3 Marketing 26 Financial Services Technology Financial Asset (excluding ABS) Funding Source (as of ’07/3) (billion yen) 4% 12,612 10,696 Bonds 10,000 8,574 11% 6,598 7,189 CP 5,000 Bank Loan 64% Production 21% & Supply 0 Others '03/3 '04/3 '05/3 '06/3 '07/3 Penetration Loss Ratio 1.0% 0.8% 40% 0.7%
Slide 27: Sales Plan by Region
Sales Plan 27 Sales Plan by Region (Retail sales, including Hino and Daihatsu) Europe Japan North America Approx. Approx. Approx. 3.10 1.5 1.45 2.5 2.40 3 1 2 2.5 0.5 1.5 2 2006 2007 2008 2009 2006 2007 2008 2009 2006 2007 2008 2009 Asia (including China) Others Approx. Approx. 2 1.90 1.55 1.5 1.5 1
Slide 28: Total Vehicle Sales Plan
Sales Plan 28 Total Vehicle Sales (Retail sales, including Hino and Daihatsu) (millions of vehicles) Approx. 10.40 R at e 9.80 th Grow 10 8.81 9.34 Strong Main tain 5 0 2006 2007 2008 2009 2010 2011
Slide 29: Operating Income Ratio
29 Operating Income Ratio Target of Operating Income Ratio Sustainable Growth in in Medium & Long-term 10% Profit with Sales Increase (billion yen) 9.6% 9.0% 8.9% 9.3% 9.0% 8.2% 10% 3,000 2,230 2,250 2,000 1,870 1,660 1,670 1,270 5% 1,000 0 0% '03/3 '04/3 '05/3 '06/3 '07/3 '08/3 ‘
Slide 30: Shareholders Return
Shareholders Return 30 Dividend per Share Share Buyback and Consolidated Payout Ratio Aim for 30% (billion yen) 499.2 Continue share buyback to (yen) consolidated payout ratio 500 improve capital efficiency 150 in the short term 400 392.8 23.4 21.3 100 300 18.3 16.8 246.5 250.0 234.3 13.0 199.9 120
Slide 31: Building a Platform for Growth
31 Building a Platform for Growth
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