fy2006 1h financial results - toyota...fy2006 prospects fy2005 change ('05/4-'06/3)...
TRANSCRIPT
FY2006 1H Financial ResultsFY2006 1H Financial ResultsSix months ended September 30, 2005Six months ended September 30, 2005
-- prepared in accordance with U.S. GAAP prepared in accordance with U.S. GAAP --
Toyota Motor CorporationToyota Motor CorporationNovember 4, 2005November 4, 2005
2
Cautionary Statement with Respect to Forward-Looking StatementsThis 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 that may cause Toyota’s actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. These factors include: (i) changes in economic conditions and market demand affecting, and the competitive environment in, the automotive markets in Japan, North America, Europe and other markets in which Toyota operates; (ii) fluctuations in currency exchange rates, particularly with respect to the value of the Japanese yen, the U.S. dollar, the euro, the Australian dollar and the British pound; (iii) Toyota’s ability to realize production efficiencies and to implement capital expenditures at the levels and times planned by management; (iv) changes in the laws, regulations and government policies in the markets in which Toyota operates that affect Toyota’s automotive operations, particularly laws, regulations and policies relating to trade, environmental protection, vehicle emissions, vehicle fuel economy and vehicle safety, as well as changes in laws, regulations and government policies that affect Toyota’s other operations, including the outcome of future litigation and other legal proceedings; (v) political instability in the markets in which Toyota operates; (vi) Toyota’s ability to timely develop and achieve market acceptance of new products; and (vii) fuel shortages or interruptions in transportation systems, labor strikes, work stoppages or other interruptions to, or difficulties in, the employment of labor in the major markets where Toyota purchases materials, components and supplies for the production of its products or where its products are produced, distributed or sold.
A discussion of these and other factors which may affect Toyota’s actual results, performance, achievements or financial position is contained in Toyota’s annual report on Form 20-F, which is on file with the United States Securities and Exchange Commission.
3
Caution concerning Insider TradingUnder 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 Toyota's shares or certain other transactions related to such shares (as set forth in the Regulations) until such material information is deemed to be made public. Under the Regulations, material information is deemed to be made public when (i) such material information is disclosed by ways of electromagnetic means as prescribed by the ordinance of the Cabinet Office (posting on the TDnet(Timely Disclosure Network) information service and ED-NET (Electronic Disclosure Network) information service ) or (ii) twelve (12) hours have elapsed since a listed company, such as Toyota, disclosed such material information to at least two (2) media sources as prescribed by the Regulations.
4
Takeshi SuzukiTakeshi Suzuki
Senior Senior Managing Director Managing Director
5
FY2006 1H FY2006 1H ((’’05/405/4--9)9)
FY2005 1HFY2005 1H((’’04/404/4--9)9) ChangesChanges
Consolidated Financial SummaryConsolidated Financial Summary
-2.3-13.5584.0570.5Net income
-110 yen/1$110 yen/1$Forex rate+3 yen/1Euro133 yen/1Euro136 yen/1Euro
-6.3-57.3913.2855.9Income before income taxes, minority interest and equity in earnings of affiliated companies
-6.6-56.8866.2809.4Operating income10.3927.59,025.69,953.1Net revenues% (*)(billions of yen)(billions of yen)(billions of yen)
(*): percentage changes year-on-year
6
1,106 1,086
1,126 1,245
476 498386 448473
556
0
1,000
2,000
3,000
4,000
'04/4-9 '05/4-9Japan N. America Europe Asia Other
Figures in brackets show total retail unit sales of Toyota/Lexus, Daihatsu, and Hino vehicles.
(+83)
(+22)
(+119)
(-20)
[ 3,730 ]3,567
[ 4,094 ]3,833 (+266)
Consolidated Vehicle SalesConsolidated Vehicle Sales
(thousands of units)
(+62)
Figures in parentheses show year-on-year changes
7
809.4(-56.8)
(billions of yen)
Contributing Factors to Consolidated Operating IncomeContributing Factors to Consolidated Operating Income
Cost ReductionEfforts+60.0
Marketing Efforts(volume, mix, etc.)
+70.0
500
550
600
650
700
750
800
850
'04/4-9 '05/4-9
866.2
Favorable ForEx Rate
+20.0
Decrease inDAIKO HENJO
-9.1
Increases in Expenses-197.7
- R&D expenses, Depreciation and CAPEX related costs, Labor costs and Other Expenses
8
Geographic Operating Income: JapanGeographic Operating Income: Japan
237.6
188.4 197.5
253.0 259.3237.3
538568 573
702
550 536
0
100
200
300
'04/4-6 '04/7-9 '04/10-12 '05/1-3 '05/4-6 '05/7-9Operating Income (billions of yen)Consolidated vehicle sales (thousands of units)
(billions of yen)
*Product Mix: Recovery from Q2 towards the 2nd half
'04/4-9Operating
Income490.6 billion yen
'05/4-9Operating
Income385.9 billion yen
9
Geographic Operating Income: North AmericaGeographic Operating Income: North America
129.8114.9
127.8
75.0
137.8 130.7
604641
569576554572
0
50
100
150
200
'04/4-6 '04/7-9 '04/10-12 '05/1-3 '05/4-6 '05/7-9Operating Income (billions of yen)Consolidated vehicle sales (thousands of units)
(billions of yen)
*120,000 units increase in vehicle sales*Shifting to compact and fuel-efficient vehicles
04/4-9Operating
Income244.7 billion yen
'05/4-9Operating
Income268.5 billion yen
10
Geographic Operating Income:Geographic Operating Income: EuropeEurope
30.935.4
26.5
15.7 16.7
23.4
242256254249
229247
0
10
20
30
40
50
'04/4-6 '04/7-9 '04/10-12 '05/1-3 '05/4-6 '05/7-9Operating Income (billions of yen)Consolidated vehicle sales (thousands of units)
(billions of yen)
*Tough market condition*Expansion of Lexus sales and marketing network*Launch of Aygo
'04/4-9Operating
Income66.3 billion yen
'05/4-9Operating
Income40.1 billion yen
11
Geographic Operating Income: AsiaGeographic Operating Income: Asia*Vehicle sales increased in all major countries*IMV Project: Start full-scale exports to Europe and M.East
(billions of yen)
43.5
75.4
448
386
0
20
40
60
80
100
'04/4-9 '05/4-9Operating Income (billions of yen) Consolidated vehicle sales (thousand of units)
12
Geographic Operating Income: Geographic Operating Income: Other (Africa, South and Central America, etc.)Other (Africa, South and Central America, etc.)
27.4
36.2
556
473
0
20
40
'04/4-9 '05/4-9Operating Income (billions of yen) Consolidated vehicle sales (thousand of units)
(billions of yen)
*Profit increased due to the IMV project
13
Business Segments: Financial ServicesBusiness Segments: Financial Services
(billions of yen)
46.2
56.5 58.7
39.4 39.743.8
0
10
20
30
40
50
60
'04/4-6 '04/7-9 '04/10-12 '05/1-3 '05/4-6 '05/7-9
'04/4-9Operating
Income102.7 billion yen
'05/4-9Operating
Income83.5 billion yen
*Decrease in valuation gains from interest rate swaps of a U.S. sales financial subsidiary: -5.2 billion yen*Gain in FY2005 semi-annual to record prior-year adjustment by a U.S sales financial subsidiary: -9.5 billion yen
14
(billions of yen)
Equity in Earnings of Affiliated CompaniesEquity in Earnings of Affiliated Companies*Favorable performance mainly by domestic group affiliates
34.7
24.1
39.3 41.3
35.6 35.1
0
10
20
30
40
50
'04/4-6 '04/7-9 '04/10-12 '05/1-3 '05/4-6 '05/7-9Equity in Earnings of Affiliated Companies
'04/4-958.8 billion yen
'05/4-970.7 billion yen
15
FY2006 1H FY2006 1H ((’’05/405/4--9)9)
FY2005 1HFY2005 1H((’’04/404/4--9)9) ChangesChanges
Unconsolidated Financial Summary (JAPAN GAAP)Unconsolidated Financial Summary (JAPAN GAAP)
7.619.9263.7283.6Net income
-5.8-25.7442.3416.6Ordinary income
-24.1-94.7392.3297.6Operating income
4.6204.34,459.74,664.0Net sales
% (*)(billions of yen)(billions of yen)(billions of yen)
(*): percentage changes year-on-year
Non-operating income: 119.0 billion yen (+69.0 billion yen from FY2005 1H)*+41.3 billion yen was due to the increase in dividends from subsidiaries, etc.
16
100
150
200
250
300
350
400
'04/4-9 '05/4-9
297.6(-94.7)
392.3 FavorableForEx Rate
+10.0Cost Reduction
Efforts +30.0
Contributing Factors to Unconsolidated Operating IncomeContributing Factors to Unconsolidated Operating Income
(billions of yen)
Increases in R&D expenses, etc-114.7
- R&D expenses, Depreciation and CAPEX related costs,Labor costs and Other Expenses
Marketing Activities
-20.0
17
Interim DividendInterim Dividend
35 35 Yen Per ShareYen Per Share+10 yen increase per share+10 yen increase per share113.8 billion yen in total113.8 billion yen in total
Dividend Payout RatioDividend Payout RatioConsolidated: 20.0%Consolidated: 20.0%Unconsolidated: 40.2%Unconsolidated: 40.2%
18
(thousands of units)
1,344
447452
1,275
1,145 1,305
503542
471554
0
1,000
2,000
3,000
4,000
04/10-05/3 Actual 05/10-06/3 Forecast
Japan N.America Europe Asia Other
3,841 4,197(+83)
(+39)
(+160)
(+ 69)
(+ 5)
Activities planned for the 2Activities planned for the 2ndnd half: half: Boost the number of vehicle sales globally with Boost the number of vehicle sales globally with introduction of new vehiclesintroduction of new vehicles
Figures in parentheses show year-on-year changes
(+356)
19
05/4 - 06/304/4 - 05/34Q3Q2Q1Q 4Q3Q2Q1Q
Premium
Compact
Activities planned for the 2Activities planned for the 2ndnd half: Domestic Markethalf: Domestic MarketImprovements of product mix,Improvements of product mix,Increases in vehicle sales and market shareIncreases in vehicle sales and market share
Further
new
model
launches
expectedPassoPorte
Majesta
Mark XIsis
Vitz
Harrier/Kluger HV
LexusGS, SC, IS
Ractis
RAV4
Harrier = RX, Kluger = Highlander, Vitz = Yaris,
20
Activities planned for the 2Activities planned for the 2ndnd half:half:Launch new domestic production sitesLaunch new domestic production sites
Toyota Motor Hokkaido, Inc.Location: HokkaidoStart of operation:
End of 2005Products: TransmissionTotal Investment: 30 billion yen
Toyota Motor Kyushu, Inc.Location: Fukuoka Start of operation: Sep. 2005Products: Lexus IS
Lexus ES (planned)Total Investment: 30 billion yen
Toyota Motor Kyushu, Inc.Location: Fukuoka Start of operation: Jan. 2006Products: EngineTotal Investment: 30 billion yen
Toyota Motor Tohoku Co., LtdLocation: MiyagiStart of operation: Nov. 2005Products: Torque ConverterTotal Investment: 8 billion yen
Kanto Auto Works, LtdLocation: Iwate Start of operation: Nov. 2005Products: Global Compact
VehicleTotal Investment: 18 billion yen
21
FY2006 Consolidated Prospects: Vehicle Unit SalesFY2006 Consolidated Prospects: Vehicle Unit Sales
7,4088,030
(+166)( +67)
( +61)
( +49)
7,970
Figures in parentheses show year-on-year changes
(thousands of units) (+622)
(+279)
2,420 2,430
2,550
1,040833 890 900
1,110
2,381
2,271 2,500
979 1,040
9441,120
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
04/4-05/3Actual 05/4-06/3 Prospects (asreleased in '05/8)
05/4-06/3 Prospects(Current)
Japan N.America Europe Asia Other
22
Capital Depreciation R&DExpenditures Expenses Expenses
(billions of yen) (billions of yen) (billions of yen)(+312.8) (+64.2) (+44.9)
Consolidated 1,400.0 840.0 800.0(+165.0) (+31.6)
Japan 840.0 520.0(+96.3) (+7.0)
North America 250.0 160.0(+47.3) (+8.7)
Europe 120.0 80.0(-24.9) (+6.8)
Asia 110.0 45.0(+29.1) (+10.1)
Other 80.0 35.0Notes: Figures in parentheses show year-on-year changes
FY2006 Consolidated Prospects :FY2006 Consolidated Prospects :CapExCapEx, Depreciation, R&D, Depreciation, R&D
23
FY2006 Prospects FY2006 Prospects ((’’05/405/4--’’06/3)06/3)
FY2005 FY2005 ((’’04/404/4--’’05/3)05/3)
FY2006 ToyotaFY2006 Toyota’’s Operations Prospects s Operations Prospects (Toyota and Lexus)(Toyota and Lexus)
Production
UnitsUnits
1,9822,100Exports5,0445,700Sales (Overseas)
1,8051,830Sales (Japan)
4,3924,600Housing Sales
3,1273,760Overseas3,7493,880JapanAutomotive
thousands of unitsthousands of units
24
FY2006 Unconsolidated Prospects (Japan GAAP)FY2006 Unconsolidated Prospects (Japan GAAP)FY2006 Prospects FY2005 Change
('05/4-'06/3) ('04/4-'05/3)(billions of yen) (billions of yen) (billions of yen)
Net Sales 10,100.0 9,218.3 881.7Operating
Income 750.0 701.3 48.7OrdinaryIncome 980.0 856.2 123.8
Net Income 670.0 529.3 140.7
Exchange Rate 110 yen/ 1$ 108 yen/ 1$ +2 yen/1$135 yen/ 1Euro 135 yen/ 1Euro ---
-151.3-36.6-114.7Increase in R&D expense, etc.+70.0+40.0+30.0Cost Reduction Efforts+70.0+90.0-20.0Marketing Efforts
+60.0+50.0+100ForEx Rate
Total+ 48.7
2nd Half+143.4
1st Half - 94.7
Contributing factors to operating Income (billions of yen)
25
FY2006 1H Financial ResultsFY2006 1H Financial ResultsSix months ended September 30, 2005Six months ended September 30, 2005
-- prepared in accordance with U.S. GAAP prepared in accordance with U.S. GAAP --
Toyota Motor Corporation Toyota Motor Corporation November 4, 2005November 4, 2005