Toyota Motor Corp. · TSE:7203
Toyota Motor — FY2006 Earnings Presentation
40 slides from Toyota Motor's earnings presentation, May 10, 2006
Slide 1: FY2006 Financial Results
FY2006 Financial Results - prepared in accordance with U.S. GAAP - Toyota Motor Corporation May 10, 2006
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, Senior Managing Director
Takeshi Suzuki Senior Managing Director 4
Slide 5: FY2006 Summary: Consolidated Vehicle Sales
FY2006 Summary Consolidated Vehicle Sales [8,252] (thousands of vehicles) [7,637] 7,974 (+566) 8,000 7,408 1,151 (+207) 944 6,000 833 880 (+47) 979 1,023 (+44) 4,000 2,271 2,556 (+285) 2,000 2,381 2,364 (-17) 0 '04.4-'05.3 '05.4-'06.3 Japan N.America Europe Asia Other Figures in brackets show total
Slide 6: FY2006 Summary: Revenue and Operating Income
FY2006 Summary Consolidated Net Revenue: Year-on-year Change 21,036.9 billion yen (13.4% up) Consolidated Operating Income: 1,878.3 billion yen (12.3% up) Consolidated Net Income: 1,372.1 billion yen (17.2% up) Operating Income by Quarter (billions of yen) 1,000 800 600 866.2 1,068.9 400 809.4 805.9
Slide 7: Growth to Aim
Growth to Aim Stable & Long-term Growth Improve Quality Take-in Strength of Products, Opportunity Technologies and Cost Reduction Every Every Area Area Segment Segment && Product Product Category Category Capabilities of Marketing Production Capability Risk and Supply Resources Resources (Finance, (
Slide 8: Major Activities 05.4-06.3
05.4-06.3 Major Activities 9 Taking in market growth through improvements of Tech. and products 9 Creating and developing a new market through HV system 9 Increasing production capacity to respond flexibly to global demand growth 9 Building brand in the global premium vehicle market 8
Slide 9: Strength of Products & Tech.
<05.4-06.3> Strength of Products & Tech. Toyota products won customers’ trust through responding to market needs Increased global sales by strength of products (Strength of Product) = Quality, Performance, Fuel Economy, Safety Tech. Environmentally Friendly Features, Price, Design, etc. <Major New P
Slide 10: Strength of Products & Tech.: Hybrid System
<05.4-06.3> Strength of Products & Tech. Hybrid System : Improve power performance & Reduce cost Sales Units of HVs 263K units (YOY change:120K units up) Æ Achieved 600K units of cumulative sales Aim 1 million of annual sales units as a market leader (Plan to achieve the target in early 2010s) Intro
Slide 11: Production Capability
<05.4-06.3> Production Capability Increased production capacity in Japan : To respond quickly and flexibly to growing demands in globe Basic Policy : Manufacture where the demand is (Increase production capacity outside Japan) Increase in overseas • Quick start- start-up Demand exceeding Increase in
Slide 12: Marketing & Sales Capability: Lexus
<05.4-06.3> Marketing & Sales Capability Development of Global Premium Brand ‘Lexus’ Fiscal Year 2006 : ‘Dawn for Global Lexus’ Global Sales Units 411k units/year (YOY Change; 72k up) ¾ Japan New Launch ¾ Europe Rebuilding ¾ China Building 05.8-06.3 Foundation 05.8-06.3 17k17k units(7 units(7 months
Slide 13: Major Activities 06.4-07.3
06.4-07.3 Major Activities 9 Global Core Models 9 Innovative Cost Reduction 9 Efficient Start-up of New Overseas Plants 13
Slide 14: Develop Appealing 'Global Core Models'
<06.4-07.3> Strength of Products & Tech. Develop Appealing ‘Global Core Models’ 34% of Consolidated Sales occupied by Global Core Models (05.4-06.3) IMV Vitz-Yaris Camry Corolla 537k unit sales /year 432k unit sales /year 536k unit sales /year 1,207k unit sales /year 04 Launch 05 Full Model Change 0
Slide 15: Cost Reduction: Innovative Cost Reduction
<06.4-07.3> Cost Reduction Innovative Cost Reduction (=VI Activities) Aim to exceed CCC21 in terms of speed, scale and reducing amounts Activity ’00~ ’05~ CCC21 VI Activities Realization of Cost ’00~ CCC21 ’07~ Reduction VI Activities Cost Reduction in ECU system ► Unite separate ECUs Approx. 60 uni
Slide 16: Efficient Start-up of Overseas New Plants
<06.4-07.3> Production Capability Efficient Start-up of Overseas New Plants *Toyota/Lexus 06.4-07.3 Overseas Production Plan ; 329k units up YOY* Expand efficient production line globally Strengthen self reliance of overseas operation Guangzhou, China (May) Texas, USA (October) <Camry --- 100k /year
Slide 17: Road Map towards Profit Realization
Road Map towards Profit Realization Expectation of Contribution to Profit Ended in 05.3 06.3 07.3 08.3 09.3 10.3 Global Sales Growth by Strength of Products & Tech. Hybrid Strategy Increase of Global Production Capacity Strategy of Global Premium Brand Global Core Models Cost Reduction (VI Activitie
Slide 18: Consistency of Growth and Efficiency
Consistency of Growth and Efficiency ‘‘Growth Growth of Sales/Revenue Sales/Revenue’’ X ‘‘High High Level of Operating Margin Margin’’ -- -- Marketing Marketing activities activities with with keeping keeping balance balance between between achieving achieving sales sales efforts efforts and and sec
Slide 19: 06.4-07.3 Consolidated Prospects: Vehicle Unit Sales
06.4-07.3 Consolidated Prospects Vehicle Unit Sales 8,450 (+476) (thousands of unit) 7,974 8,000 1,250 (+99) 1,151 850 (-30) 6,000 880 1,023 1,160 (+137) 4,000 2,800 (+244) 2,556 2,000 2,364 2,390 (+26) 0 '05.4-'06.3 '06.4-'07.3 Japan NA Europe Asia Other Region Figures in parentheses show year-on-y
Slide 20: 06.4-07.3 Consolidated Prospects
06.4-07.3 Consolidated Prospects Consolidated Net Revenue: 22,300 billion yen Consolidated Operating Income: 1,900 billion yen Consolidated Net Income: 1,310 billion yen 110 yen/1$ Forex Rate 135 yen/1Euro 20
Slide 21: Shareholder Return Policy
Shareholder Return Policy Dividend -Aim for 30% payout ratio on consolidated basis Share Buyback -Improve capital efficiency(ROE) -Provide support in case of demand- supply imbalance 21
Slide 22: Shareholder Return: Dividend
Shareholder Return Dividend : 90 yen per share (YOY change: 25 yen up) Total Total Amount Amount ofof Payout Payout :: 292.1 292.1 billion billion yen yen Consolidated Consolidated Payout Payout Ratio Ratio :: 90 yen 21.3% 21.3% (YOY (YOY change change 3.0% 3.0% up) up) 65 45 36 24 25 28 35 20 25 11
Slide 23: Shareholder Return: Share Buyback
Shareholder Return Share Enabling Enabling Amount Amount (maximum (maximum limitation) limitation) Buyback 200 200 billion yen // 30 billion yen 30 million million shares shares <Cumulative Share Buyback in the past ten years> 2,179.4 2,045.8 (billions of yen) 1,779.6 1,380.7 927.3 649.8 340.7 386.2
Slide 24: Consolidated Financial Summary
Consolidated Financial Summary FY2006 FY2005 Changes (05.4-06.3) (04.4-05.3) (billions of yen) (billions of yen) (billions of yen) %(*1) Net Revenues 21,036.9 18,551.5 2,485.4 13.4 Operating Income 1,878.3 1,672.1 206.2 12.3 Income before income taxes, minority interest (*2)2,087.3 1,754.6 332.7 19.
Slide 25: Contributing Factors to Consolidated Operating Income
Contributing Factors to Consolidated Operating Income Increases in Expenses -307.3 Cost Reduction 1,878.3 R&D Expenses -49.6 Efforts +130.0 (206.2) (billions of yen) Depreciation and CAPEX related costs -64.3 Labor costs -95.1 1,800 Other expenses -98.3 1,700 1,672.1 1,600 1,500 Marketing Efforts 1,
Slide 26: Geographic Operating Income: Japan
Geographic Operating Income: Japan (billions of yen) 702 707 538 568 573 550 536 571 408.9 400.0 300.0 259.3 281.1 253.0 237.6 237.3 188.4 197.5 200.0 05.4-06.3 04.4-05.3 100.0 1,075.9 987.2 0.0 '04.4-6 '04.7-9 '04.10-12 '05.1-3 '05.4-6 '05.7-9 '05.10-12 '06.1-3 Operating Income(billions of yen) Con
Slide 27: Geographic Operating Income: North America
Geographic Operating Income: North America (billions of yen) 641 643 668 604 572 554 576 569 150 137.8 130.7 129.8 127.8 127.8 114.9 99.3 100 75.0 05.4-06.3 495.6 50 04.4-05.3 447.5 0 '04.4-6 '04.7-9 '04.10-12 '05.1-3 '05.4-6 '05.7-9 '05.10-12 '06.1-3 Operating Income (billions of yen) Consolidated
Slide 28: Geographic Operating Income: Europe
Geographic Operating Income: Europe (billions of yen) 256 279 247 249 254 242 246 229 40 35.4 30.9 30 26.5 26.6 27.2 23.4 20 15.7 16.7 04.4-05.3 05.4-06.3 10 108.5 93.9 0 '04.4-6 '04.7-9 '04.10-12 '05.1-3 '05.4-6 '05.7-9 '05.10-12 '06.1-3 Operating Income (billions of yen) Consolidated vehicle sales
Slide 29: Geographic Operating Income: Asia
Geographic Operating Income: Asia (billions of yen) 252 229 219 50 217 215 202 184 195 40 39.8 38.6 35.6 31.5 30 25.2 24.4 25.1 19.1 05.4-06.3 20 145.5 04.4-05.3 10 93.8 0 '04.4-6 '04.7-9 '04.10-12 '05.1-3 '05.4-6 '05.7-9 '05.10-12 '06.1-3 Operating Income (billions of yen) Consolidated vehicle sale
Slide 30: Geographic Operating Income: Other
Geographic Operating Income: Other (Africa, Oceania, South and Central America, etc.) (billions of yen) 284 303 292 241 246 272 232 225 20 19.2 17.0 16.3 14.1 14.7 15 13.3 11.6 10 8.4 05.4-06.3 67.2 5 04.4-05.3 47.4 0 '04.4-6 '04.7-9 '04.10-12 '05.1-3 '05.4-6 '05.7-9 '05.10-12 '06.1-3 Operating Inco
Slide 31: Business Segment: Financial Services
Business Segment: Financial Services (billions of yen) 56.5 58.7 50 46.2 46.8 43.8 39.4 39.7 40 04.4-05.3 30 25.5 200.8 20 05.4-06.3 155.8 10 0 '04.4-6 '04.7-9 '04.10-12 '05.1-3 '05.4-6 '05.7-9 '05.10-12 '06.1-3 Operating Income (billions of yen) - Valuation losses from interest rate swaps at TFC an
Slide 32: Equity in Earnings of Affiliated Companies
Equity in Earnings of Affiliated Companies (billions of yen) 47.8 45.8 41.3 39.3 40 35.6 34.7 35.1 30 24.1 05.4-06.3 164.3 20 04.4-05.3 139.4 10 0 '04.4-6 '04.7-9 '04.10-12 '05.1-3 '05.4-6 '05.7-9 '05.10-12 '06.1-3 - Favorable performance mainly by domestic group affiliates and Chinese joint venture
Slide 33: FY2006 Consolidated CAPEX, Depreciation, R&D
FY2006 Consolidated CAPEX, Depreciation, R&D Capital Depreciation R&D Expenditure Expenses Expenses (billions of yen) (billions of yen) (billions of yen) Consolidated 1,528.8 (+441.6) 891.4 (+115.6) 812.6 (+57.5) Japan 909.3 (+234.3) 568.9 (+ 80.5) North 270.3 (+116.6) 165.1 (+ 12.1) America Europe
Slide 34: Unconsolidated Financial Summary (Japan GAAP)
Unconsolidated Financial Summary (Japan GAAP) FY2006 FY2005 Changes (05.4-06.3) (04.4-05.3) (billions of yen) (billions of yen) (billions of yen) %(*) Net Sales 10,191.8 9,218.3 973.5 10.6 Operating Income 847.9 701.3 146.6 20.9 Ordinary Income 1,104.7 856.2 248.5 29.0 Net Income 765.9 529.3 236.6 4
Slide 35: Contributing Factors to Unconsolidated Income
Contributing Factors to Unconsolidated Income (billions of yen) Increases in Expenses -157.1 Cost Reduction 847.9 R&D Expenses -38.6 Effort +60.0 (+146.6) 850 Depreciation and CAPEX related costs -17.1 Labor Costs -30.6 Other Expenses -70.8 750 701.3 Marketing Effort 650 (volume, mix, etc.) +40.0 Ef
Slide 36: FY2007 Consolidated Prospects: Financial Summary
FY2007 Consolidated Prospects: Financial Summary FY2007 FY2006 Changes (06.4-07.3) (05.4-06.3) (billions of yen) (billions of yen) (billions of yen) %(*1) Net Revenues 22,300.0 21,036.9 1,263.1 6.0 Operating Income 1,900.0 1,878.3 21.7 1.2 Income before income taxes, minority interest and equity in
Slide 37: FY2007 Consolidated Prospects: CAPEX, Depreciation, R&D
FY2007 Consolidated Prospects: CAPEX, Depreciation, R&D Capital Depreciation R&D Expenditure Expenses Expenses (billions of yen) (billions of yen) (billions of yen) Consolidated 1,550.0 (+ 21.2) 930.0 (+ 38.6) 920.0 (+107.4) Japan 850.0 ( - 59.3) 590.0 (+ 21.1) North 330.0 (+ 59.7) 165.0 ( - 0.1) Am
Slide 38: FY2007 Unconsolidated Prospects: Financial Summary
FY2007 Unconsolidated Prospects: Financial Summary (Japan GAAP) FY2007 FY2006 Changes (06.4-07.3) (05.4-06.3) (billions of yen) (billions of yen) (billions of yen) %(*) Net Sales 11,000.0 10,191.8 808.2 7.9 Operating 880.0 847.9 32.1 3.8 Income Ordinary 1,230.0 1,104.7 125.3 11.3 Income Net Income 8
Slide 39: FY2007 Toyota's Operations Prospects
<Reference Material> FY2007 Toyota’s Operations Prospects FY2007 FY2006 (06.4-07.3) (05.4-06.3) thousand of units thousand of units Automotive Japan 4,100 3,863 Production Overseas 4,060 3,731 Sales (Japan) 1,780 1,769 Exports 2,350 2,126 Sales (Overseas) 6,250 5,664 Housing Sales 5,000units 4,693 u
Slide 40: FY2006 Financial Results
FY2006 Financial Results - prepared in accordance with U.S. GAAP - Toyota Motor Corporation May 10, 2006