twelve months ended march 31, 2003 - prepared in ... · toyota motor corporation may 8, 2003. 2...

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FY2003 Financial ResultsFY2003 Financial Resultstwelve months ended March 31, 2003twelve months ended March 31, 2003

-- prepared in accordance with Japan GAAP prepared in accordance with Japan GAAP --

Toyota Motor CorporationToyota Motor Corporation

May 8, 2003May 8, 2003

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Cautionary Statement with Respect to Forward-Looking Statements

This release 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 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 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 affecting Toyota’s automotive operations, particularly laws, regulations and policies relating to environmental protection, vehicle emissions, vehicle fuel economy and vehicle safety, as well as changes in laws, regulations and government policies affecting 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 the “Operating and Financial Review and Prospects” and “Information on the Company”sections and elsewhere in Toyota’s annual report on Form 20-F, which is on file with the United States Securities and Exchange Commission.

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Caution concerning insider trading:Under Japanese securities laws and regulations (the "Regulations"), although there are 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, if twelve (12) hours have elapsed since a listed company, such as Toyota, disclosed such material information to at least two (2) media sources prescribed by the Regulations, such as certain newspaper companies and broadcasting companies, it is deemed that such material information was made public. Thus, investors aware of any material information contained in this document, if any, are recommended not to trade in Toyota's shares until the opening of Japanese stock markets on February 6, 2003 or to seek its own legal and other advice from its own professional advisers separately.

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I.I. Consolidated Consolidated Financial SummaryFinancial Summary

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! US GAAP financial figures (Apr �02 - Mar �03) to be released late July

Notes toConsolidated Financial Results

<1> <1> Japan GAAPJapan GAAP

<2> <2> Scope of Consolidation and AffiliatesScope of Consolidation and AffiliatesAccounted for under Equity MethodsAccounted for under Equity Methods

FY2001 FY2002 FY2003Changes Changes

ConsoliodatedSubsidiaries 445 + 119 564 + 17 581Affiliates Accounted forunder Equity Methods 51 - 1 50 + 1 51

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Consolidated Financial Summary

FY2003 FY2002(Apr'02-Mar'03) (Apr'01-Mar'02) Changes

(billions of yen) (billions of yen) (billions of yen)

Net Sales * 16,054.2 15,106.2 948.0

Operating Income * 1,363.6 1,123.4 240.2

Ordinary Income * 1,414.0 1,113.5 300.5Income before Taxes& Minority Interest inConsolidated Subsidiaries * 1,649.3 1,113.5 535.8

Net Income * 944.6 615.8 328.8*: Represent record results in FY2003

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Consolidated Vehicle Sales

2,177

1,689

634

682

2,322

1,734

691

779

2,217

1,780

* 866

* 921

2,218(+1)

1,982

776

1,270

0

1,000

2,000

3,000

4,000

5,000

6,000

FY2000 FY2001 FY2002 FY2003

OtherEuropeN. AmericaJapan

* 5,784

3,204

Overseas Total4,028 (+461)

(thousands of units)

3,005 3,567

6,246 (+ 462)

* FY2002 vehicle sales figures include 15 mos. of operations of certainsubsidiaries in Europe and Other geographical segment. Including theirfigures recalculated on a 12 mos. fiscal period basis are as follows (‘000 units):Total Units sold: 5,542 Europe: 727 Other: 818

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3,863

781173

185

4,098

807176

194

4,029

793* 309* 273

4,162(+133)

883

387550

0

1,000

2,000

3,000

4,000

5,000

6,000

FY2000 FY2001 FY2002 FY2003


Consolidated Vehicle Production

1,177

* 5,404


1,1391,375

Overseas Total

1,820 (+445)

5,982 (+578)

* FY2002 vehicle production figures include 15 mos. of operations of certainsubsidiaries in Europe and Other geographical segment. Including their figuresrecalculated on a 12 mos. fiscal period basis are as follows (‘000 units) :Total Units produced: 5,305 Europe: 258 Other: 225

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6.0%6.5%

7.4%

8.5%

0

500

1,000

1,500

FY2000 FY2001 FY2002 FY20035%

10%

Operating Income Operating Income Ratio

Changes in Operating Income(billions of yen)

775.9 870.1

1,123.4

1,363.6(+240.2)

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FY2002 FY2003

Contributions to Operating Income

1,363.6 (+240.2)Cost Reduction Efforts +300.0

Increase in R&D and Labor Costs, etc. -209.8

Increase in Sales +90.0

1,123.4

Favorable Forex Rate +60.0

(billions of yen)

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Geographical Segments: Japan

%18.7

billions of yen162.5


billions of yen1,032.8

Operating Income

ChangesFY2002FY2003

Alphard

ist WiLL CYPHA

G-Book

WISH

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Geographical Segments:North America

%9.1

billions of yen24.1



Operating Income

ChangesFY2002FY2003

HighlanderHighlander

Lexus ES300Lexus ES300

CorollaCorolla

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Geographical Segments: Europe

%�

billions of yen16.3

billions of yen- 12.4

billions of yen3.9

Operating Income

ChangesFY2002FY2003

Avensis Lift-backAvensis Wagon

Avensis SedanEuropean UpperCore Model

New Avensis

European UpperEuropean UpperCore ModelCore Model

New AvensisNew Avensis

RAV4

Corolla

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Geographical Segments: Other

Operating Income

billions of yen52.5

FY2003billions of yen

19.7

FY2002billions of yen

32.8

Changestimes

2.7

October �02 Production of VIOS starts atTianjin Plant→ Capacity Expansion due to strong sales

(50,000 units from 30,000 annually)

Corolla Altis

VIOS

Hilux

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Business Segments:Financial Services

! Expansion of Financial Services Business Operation:5.3 billion yen

! Increase in evaluation loss from interest rate swap agreements entered into by US finance subsidiary:

- 45.4 billion yen

Operating Income: 28.5 billion yen(-40.1 billion yen decrease compared to FY2002)

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Capital Expenditures, Depreciation, R&D

CapitalExpenditure(billions of yen)

DepreciationExpenses

(billions of yen)

R&DExpenses

(billions of yen)

ConsolidatedTotal 993.5 738.1 671.6

Japan 535.7 471.9 　　　　

North America 282.5 169.7 　　　　

Europe 106.7 54.4 　　　　

Other 68.6 42.1 　　　　

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Non-operating Income, etc.

Non-operating Income: 50.4 billion yen(60.3 billion yen increase compared to FY2002)

! Increase in income from equity in earnings of affiliates:

66.9 billion yen, etc.

Extraordinary Gains: 235.3 billion yen(235.3 billion yen increase compared to FY2002)

! Gains on return of substituted portions of employee pension fund 235.3 billion yen

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II.II. Unconsolidated Unconsolidated Financial SummaryFinancial Summary

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Unconsolidated Results Summary

FY2003 FY2002(Apr'02-Mar'03) (Apr'01-Mar'02) Changes

(billions of yen) (billions of yen) (billions of yen)

Net Sales * 8,739.3 8,284.9 454.4

Operating Income * 861.3 748.9 112.4

Ordinary Income * 892.6 768.9 123.7

Net Income * 634.0 470.2 163.8*: Represents record results in FY2003

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! 36 yen per share<Year-end Dividend: 20 yen per share>+8 yen per share,Total Dividend Payout 125.8 billion yen

! Dividend Payout Ratio 19.8%(FY2002 21.6%)

Dividend

Annual DividendAnnual Dividend

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Share Repurchase

Amount: Up to 600 billion yen or 170 million shares(for repurchases to be made between Jun �02-Jun �03)

Amount Authorized for Repurchased

Amount: 453.4 billion yen, 154 million shares(aggregate amount for Jun �02-Mar �03)

→ over 90% of the authorized amount in shares repurchased

Repurchased Amount of Toyota Shares

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Banks15%

[March 31, 2003][[March 31, 2000]March 31, 2000]

32% Dramatic drop

Shareholding by banksShareholding by banks VSVS

Increase in shareholding by Trust, Pension Fund, etc.Increase in shareholding by Trust, Pension Fund, etc.

Increase in individual shareholders (reduction in stock unit in August 2000)

Increase in individual shareholders (reduction in stock unit in August 2000)

Changes in Share Ownership

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III.III. Prospects for FY2004Prospects for FY2004and Beyondand Beyond

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Japanese Market: Introduction of Lexus Brand & Reorganization of Sales Channels

⇒⇒⇒⇒ Preparations for future changes (in market structure & customer values)

Japanese Market: Introduction of Lexus Brand & Reorganization of Sales Channels

⇒⇒⇒⇒ Preparations for future changes (in market structure & customer values)

PresentPresent

Toyota brandToyota brand

Toyota brandToyota brand

After reorganizationAfter reorganization

Development of new Lexus dealership Development of new Lexus dealership network in 2005 (150 dealers)network in 2005 (150 dealers)

Lexus Lexus (new)(new)

Consolidation of Consolidation of NetzNetz & & VistaVistanetworks in spring 2004networks in spring 2004

→→→→→→→→ Foothold in new market segmentFoothold in new market segmentNetzNetz

ToyotaToyota’’s largest volumes largest volume--sales sales channel, centering on compact channel, centering on compact vehiclesvehicles

CorollaCorolla

Leading channel for the mediumLeading channel for the medium--size car marketsize car marketToyopetToyopet

Luxury vehicle channel for Luxury vehicle channel for the Toyota brandthe Toyota brandToyotaToyota

Vista

Netz

Toyota

Toyopet

Corolla

(5 channels)(5 (5 channels)channels)

(4 channels)(4 (4 channels)channels)

<1> New Products, Logistics Policy

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<2> IMV Project:

ThailandThailand

IndonesiaIndonesia

IndiaIndia

PhilippinesPhilippines

JapanJapan

OthersOthers

Thailand: Global manufacturing baseOther Asian nations: Manufacturing bases for engines & main components

Thailand: Global manufacturing baseOther Asian nations: Manufacturing bases for engines & main components

South AfricaSouth Africa

ArgentinaArgentina

To more than 80 nations/regionsTo more than 80 nations/regions

To Europe & AfricaTo Europe & AfricaTo Europe & Africa

To South AmericaTo South AmericaTo South America

South Africa & Argentina:Intra-regionalmanufacturing bases

South Africa & Argentina:South Africa & Argentina:IntraIntra--regionalregionalmanufacturing basesmanufacturing bases

: Pickups & multipurpose vehicles: Engines & main components: Pickups & multipurpose vehicles: Engines & main components

Asian Market : Manufacturing & export base for pickups/multipurpose vehicles

⇒⇒⇒⇒ Development of global manufacturing base andmutual distribution network (IMV Project starts in 2004)

Asian Market : Manufacturing & export base for pickups/multipurpose vehicles

⇒⇒⇒⇒ Development of global manufacturing base andmutual distribution network (IMV Project starts in 2004)

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<3> Major Projects by Region<<Europe>Europe>

Increase ProfitabilityIncrease Profitability-- Strengthen brand Strengthen brand -- Expand local productionExpand local production-- Manufacturing / sales Manufacturing / sales

collaboration collaboration <<N. America>N. America>

Strengthen Local ProductionStrengthen Local Production-- Reallocate production sitesReallocate production sites

by platforms by platforms -- 66thth Plant (Texas) Plant (Texas)

<<China>China>Accommodate RapidAccommodate Rapid

Market ExpansionMarket Expansion-- Strengthen manufacturingStrengthen manufacturing

and sales and sales -- Expand model lineExpand model line--up up

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<4> Next-generation Technology

Environment Excitement

New New PriusPrius

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Toyota�s Operation Prospectsexcluding Daihatsu and Hino

FY 2004 FY 2003(03/4-04/3) (02/4-03/3)

thousands of units thousands of unitsAutomotive Japan 3,330 3,513Production Overseas 2,450 2,215 Sales (Japan) 1,750 1,724 Exports 1,650 1,835 Sales (Overseas) 4,100 3,927

units units

Housing Sales 3,600 3,577

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FY2004 Unconsolidated Prospects

FY 2004 FY 2003 Changes(Apr'03-Mar'04) (Apr'02-Mar'03)(billions of yen) (billions of yen) (billions of yen)

Net Sales 8,300.0 8,739.3 -439.3

Operating Income 620.0 861.3 -241.3

Ordinary Income 670.0 892.6 -222.6

Net Income 440.0 634.0 -194.0Exchange Rate 115 yen/ 1$ 122 yen/ 1$ -

125 yen/ 1Euro 121 yen/ 1Euro -(assumed)

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2,218

1,982

776

1,270

2,280

2,000

800

1,180

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

02/4-03/3 03/4-04/3


FY2004 Consolidated Prospects:Vehicle Unit Sales


(- 90)

(+24)

(+18)

(+62)

6,260 (+14)6,246

Actual<JAPAN GAAP>

Estimated<US GAAP>

<Japan GAAP>

<1,320>

<800>

<2,000>

<2,280>

<6,400>

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FY2004 Consolidated Prospects: FY2004 Consolidated Prospects: Capital ExpendituresCapital Expenditures

Capital Depreciation R&D<US GAAP> Expenditures Expenses Expenses

(billions of yen) (billions of yen) (billions of yen)(-123.5) (-8,1) (+18.4)

Consolidated <910.0> 870.0 <770.0> 730.0 <690.0> 690.0(-20.7) (-11.9)

(Japan) <520.0> 515.0 <480.0> 460.0(-72.5) (+5.3)

(North America) <230.0> 210.0 <190.0> 175.0(-51.7) (+10.6)

(Europe) <55.0> 55.0 <65.0> 65.0(+21.4) (-12.1)

(Other) <105.0> 90.0 <35.0> 30.0Notes: Amounts in parentheses represent changes from the previous fiscal year prepared in accordance with Japan GAAP Amounts in brackets represent consolidated prospective figures prepared in accordance with Japan GAAP Amounts in bold represent consolidated prospective figures prepared in accordance with US GAAP

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0

100

200

300

FY1999 FY2000 FY2001 FY2002 FY2003 FY2004Prospect

Parent Subsidiaries

FY2004 Consolidated ProspectsFY2004 Consolidated Prospects：：：：：：：：Cost ReductionCost Reduction

(billions of yen)

33

Share Repurchase

up to 400 billion yen orup to 150 million shares

(authorization valid from Annual General Shareholders� Meeting �03 through �04)

Authorized AmountAuthorized Amount

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FY2003 Financial ResultsFY2003 Financial Resultstwelve months ended March 31, 2003twelve months ended March 31, 2003

-- prepared in accordance with Japan GAAP prepared in accordance with Japan GAAP --

Toyota Motor CorporationToyota Motor Corporation

May 8, 2003May 8, 2003

twelve months ended march 31, 2003 - prepared in ... · toyota motor corporation may 8, 2003. 2...

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