FY2019 First Quarter Financial Results - Toyota · 2018-08-03 · Financial Results Toyota Motor Corporation August 3, 2018 . 2 Cautionary Statement with Respect to Forward-Looking

Corolla Sport

FY2019 First Quarter

Financial Results

Toyota Motor Corporation August 3, 2018

2

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

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, but are not limited to: (i) changes in economic conditions, market demand, and the

competitive environment affecting the automotive markets in Japan, North America, Europe, Asia 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, the Russian ruble, the Canadian dollar and the British pound, and

interest rates fluctuations; (iii) changes in funding environment in financial markets and increased competition in the

financial services industry; (iv) Toyota’s ability to market and distribute effectively; (v) Toyota’s ability to realize production

efficiencies and to implement capital expenditures at the levels and times planned by management; (vi) 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 government policies relating to vehicle safety including remedial measures

such as recalls, trade, environmental protection, vehicle emissions and vehicle fuel economy, as well as changes in laws,

regulations and government policies that affect Toyota’s other operations, including the outcome of current and future

litigation and other legal proceedings, government proceedings and investigations; (vii) political and economic instability in

the markets in which Toyota operates; (viii) Toyota’s ability to timely develop and achieve market acceptance of new

products that meet customer demand; (ix) any damage to Toyota’s brand image; (x) Toyota’s reliance on various suppliers

for the provision of supplies; (xi) increases in prices of raw materials; (xii) Toyota’s reliance on various digital and

information technologies; (xiii) fuel shortages or interruptions in electricity, 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; and (xiv) the impact of natural calamities including the negative effect on Toyota’s vehicle production and sales.

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 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 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 notified to a stock exchange and 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 ) 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


Financial Results

FY2019 First Quarter Financial Performance

FY2019 Financial Forecasts

345 333

363 394

240 253

723 746

544 510

0

500

1,000

1,500

2,000

2,500

Japan

N. America

Europe

Asia

Other

5

2,590 +26

2,215 2,236 (+21)

(+23)

(’17/4-6) (’18/4-6)

(-34)

(-12)

(+31)

(+13)

2,616

Consolidated Vehicle Sales (thousands of vehicles)

FY2018 1Q FY2019 1Q

Total retail vehicle sales

Change

Central and South America, Oceania, Africa, The Middle East, etc.

Change

2,236 2,215 +21

7,362.7 7,047.6 +315.1

682.6 574.2 +108.3

(9.3%) (8.1%)

131.1 105.0 +26.1

813.8 679.3 +134.5

246.1 185.3 +60.7

116.5 137.8 -21.2

regarding China 27.5 30.5 -2.9

657.3 613.0 +44.2

(Margin) (8.9%) (8.7%)

US$ 109 yen 111 yen -2 yen

€ 130 yen 122 yen +8 yen

Income before

Income Taxes

Provision for

Income Taxes

Equity in Earnings of

Affiliated Companies

Net Revenues

FY2019 1Q

('18/4-6)

FY2018 1Q

('17/4-6)

Vehicle Sales (thousands of vehicles)

FOREX

Rates

Net Income

Operating Income

Other Income

(Margin)

*1

*1

*2

*1

*2

6

Consolidated Financial Summary

(billions of yen)

*1 Regarding Japan 80.4 billion yen (-18.0 billion yen year on year), Other 8.6 billion yen (-0.3 billion yen year on year)

Retail Sales Results in China (‘18/1-3): 324 thousand vehicles (+26 thousand vehicles year on year)

*2 Net Income attributable to Toyota Motor Corporation

+15.0±0

+45.0

-11.7

+60.0

7

’17/4-6 ’18/4-6

574.2

682.6

Analysis of Consolidated Operating Income

(billions of yen) +120.0

Excluding the overall impact of foreign exchange

rates and swap valuation gains/losses, etc.

Operating Income (+108.3)

Effects of

FOREX

Rates *1

Cost

Reduction

Efforts

Marketing

Efforts *2

Other *4

Transactional (Imports & Exports) -15.0 Volume, Model Mix +60.0 Labor Costs -15.0

US$ -25.0 Financial Services +5.0 Depreciation -5.0

€ +10.0 Other +15.0 Other -20.0 R&D Expenses +10.0

Other ±0 Expenses, etc. +70.0

*1. Details ※

-11.7

*4. Details*3. Details

Translational FOREX impact

concerning overseas subsidiaries±0

*2. DetailsValuation Gains/Losses

from Swaps, etc.

(Translational FOREX impact of fiscal

year-end balance of provisions in foreign

currencies, etc.)

(Including sales costs, etc.)

Expenses including

the impact of

Reduction Efforts *3

333345

394363

253240

746723

510544

8

●

≪Japan≫ ≪N. America≫ ≪Europe≫ ≪Asia≫ ≪Other≫

+76.2

-10.4

+2.6

+39.3

+1.5

’17/4-6 ’18/4-6

(-34) (+23)

(+13)

(+31)

(-12)

319.2 395.9 89.2 63.5 20.3 23.0 104.3 146.3 38.6 43.2

319.9

(8.7%)

396.1

(10.2%) 88.8

(3.3%) 78.3

(2.8%)

20.5

(2.7%)

23.1

(2.9%)

142.2

(10.8%) 102.8

(8.6%) 39.5

(6.5%)

41.0

(6.9%)

Geographic Operating Income

Operating Income (billions of yen) (Excluding Valuation Gains/Losses from Interest Rate Swaps, etc.)

Consolidated Vehicle Sales (thousands of vehicles)

Operating Income including Valuation Gains/Losses from Interest Rate Swaps, etc. (billions of yen)

Japan

N. America

Europe

Asia

Other

(+76.2 billion yen year on year) Increased mainly due to cost reduction efforts, increase in vehicle units that were

exported, and reduction in expenses.

(-10.4 billion yen year on year) Decreased largely due to effects of marketing activities.

(+2.6 billion yen year on year) Increased mostly as a result of reduction in expenses.

(+39.3 billion yen year on year) Increased mainly due to marketing efforts and cost reduction.

(+1.5 billion yen year on year) Increased largely as a result of marketing efforts and reduction in expenses.

’17/4-6 ’18/4-6 ’17/4-6 ’18/4-6 ’17/4-6 ’18/4-6 ’17/4-6 ’18/4-6

75.1 82.2

+7.1

-1.7

-8.8

82.2 +7.1

-8.7

73.5

Change

75.1

0.1

75.3

9

’17/4-6 ’18/4-6

’17/4-6 ’18/4-6

Financial Services Operating Income Operating Income (billions of yen) *

* Excluding Valuation Gains/Losses from Interest Rate Swaps, etc. Operating Income*

82.2 billion yen (+7.1 billion yen year on year)

Operating income increased, mainly due to an increase

in the lending balance and a decrease in costs

related to loan losses and residual-value losses.

Operating Income

Valuation Gains/Losses

from Interest Rate Swaps, etc.

Operating Income Excluding

Valuation Gains/Losses from

Interest Rate Swaps, etc.

10


Financial Results

FY2019 First Quarter Financial Performance

FY2019 Financial Forecasts

11

1,392

1,543

968

2,806

2,255Japan

N. America

Europe

Asia

Other

1,350 1,320

1,670 1,690

940 950

2,800 2,750

2,190 2,190

0

2,000

4,000

6,000

8,000

10,000

8,950 8,900 (-50)

(±0)

(-50)

(+10)

(+20)

(-30)

Change

8,964

10,500 10,500 ±0 10,441

(’18/4-’19/3) (’18/4-’19/3) (’17/4-’18/3)

FY2019 Forecasts: Consolidated Vehicle Sales

Total retail vehicle sales

Previous Forecasts New Forecasts FY2018 Results

Central and South America, Oceania, Africa, The Middle East, etc.

(thousands of vehicles)

12

Net Revenues

8,964 Vehicle Sales

±0

±0

8.5%

470.0

(’17/4-’18/3)

±0

±0 Operating Income

±0

2,493.9

2,620.4

2,399.8

29,379.5

8.2%

(’18/4-’19/3)

-50

29,000.0

2,300.0 7.9%

2,450.0

440.0

2,120.0 7.3%

8,950

(’18/4-’19/3)

29,000.0

2,300.0 7.9%

2,450.0

440.0

2,120.0 7.3%

8,900

106 yen

126 yen

105 yen

130 yen

+1 yen

-4 yen

111 yen

130 yen

FY2019 Forecasts: Consolidated Financial Summary

New Forecasts Previous Forecasts Change FY2018 Results


Margin

Income before Income Taxes

Equity in Earnings of Affiliated

Companies

Net Income* 1

Margin *1

FOREX

Rates

US$

€

*2

*2

(billions of yen)

*2 FOREX Rate performance: 109 yen against the U.S. dollar and 130 yen against the Euro from April 2018 to June 2018 *1 Net Income attributable to Toyota Motor Corporation

FOREX Rate assumptions: 105 yen against the U.S. dollar and 125 yen against the Euro from July 2018 to March 2019

13

+5.0 -70.0 -40.0 +110.0 -5.0

2,300.0

Operating Income (±0)

2,300.0

Analysis of FY2019 Forecasts: Consolidated Operating Income

(vs. Previous Forecasts)

(billions of yen)

FY2019 FY2019 Previous Forecasts

105 yen/US$ 130 yen/€

106 yen/US$ 126 yen/€

New Forecasts

±0



Effects of

FOREX

Rates *1

Cost

Reduction

Marketing

Efforts *2

Expenses including

the impact of


Other *4


US$ +40.0 Financial Services +10.0 Depreciation ±0

€ -20.0 Other +40.0 Other +80.0 R&D Expenses ±0

Other -40.0 Other -35.0

*1. Details ※

-5.0



concerning overseas subsidiaries-15.0


from Swaps, etc.



currencies, etc.)


Expenses including

the impact of


-4.8

14

2,399.8 2,300.0

FY2018 Results FY2019 New Forecasts

(billions of yen)

Analysis of FY2019 Forecasts: Consolidated Operating Income

(vs. FY2018 Results)

+130.0



Effects of

FOREX

Rates *1

Cost

Reduction

Efforts

Marketing

Efforts *2

Other *4

Operating Income (-99.8) 111 yen/US$ 130 yen/€

106 yen/US$ 126 yen/€


US$ -205.0 Financial Services +10.0 Depreciation -50.0

€ -20.0 Other +110.0 Other ±0 R&D Expenses -25.0

Other -70.0 Expenses, etc. +120.0

*1. Details ※

-4.8



concerning overseas subsidiaries-40.0


from Swaps, etc.



currencies, etc.)


-225.0 +60.0 +60.0 +10.0

15

Activities for Enhancement of Competitiveness

Cost Reduction

TPS

In addition to conventional cost reduction activities, thoroughly pursue reduction of

fixed costs.

Accelerate and enhance Toyota Production System(TPS) activities in administrative

and technical divisions.

Making Ever-

Better-Cars

Launch TNGA models. (e.g. new Crown and new Corolla Sport) (June)

Advance/Upgrade TNGA to more thoroughly select customers’ points of view.

Next Generation

Technologies

Expand production facilities of fuel cell stacks and hydrogen tanks to enable/support

post-2020 mass-marketing. (May)

Investment in ALBERT for data analysis collaboration for the development of

automated driving. (May)

Strategic investment and collaboration with Grab to advance MaaS in Southeast Asia.

(June)

Make “Connected Vehicles” its new standard in Japan. (June)

(Release the Crown and the Corolla Sport that come standard with an on-board DCM.)

Strengthening

competitiveness

of Toyota Group

Consolidate core electric component operations of both Toyota and Denso within Denso.

(June)

Consider the transfer of all Toyota sales and marketing operations for Africa to Toyota

Tsusho. (June)

( ) : publication month

16

Olympic

and

Paralympic

Games in

2020

As a worldwide partner, throughout the 2020 Tokyo Games, provide mobility

solutions beyond the conventional supply of vehicles, to showcase future

image/inspiration of mobility society that enables “Mobility for All”.

Mobility solutions to be provided (examples)

Transportation services with “e-Palette”, the next generation battery electric vehicle specially designed for MaaS.

In order to make Tokyo 2020 a stepping stone to realizing

a hydrogen society, support the Games and their legacy with

a large number of zero-emission hydrogen fuel cell vehicles such

as the “Mirai” sedan and the Fuel Cell Bus “Sora” for official use.

Showcase automated driving (SAE Level 4) as a solution for

“Mobility for All” through verification testing and demonstrations.

Activities for Enhancement of Competitiveness


Financial Results

Toyota Motor Corporation August 3, 2018

1,004.5 1,055.6 1,037.5 1,064.2 1,080.0

3.7 3.7 3.8 3.6 3.7

15/3 16/3 17/3 18/3 19/3

1,177.4 1,292.5

1,211.8 1,302.7 1,370.0

806.2

885.1 893.2

964.4 1,000.0

15/3 16/3 17/3 18/3 19/3

27.2

28.4 27.5

29.3 29.0

15/3 16/3 17/3 18/3 19/3

8,972

8,681

8,971 8,964 8,900

15/3 16/3 17/3 18/3 19/3

(億円) ◆ ●

924.6

1,287.2

1,082.4

1,200.1

200 210 210

220

0

50

100

150

200

250

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

15/3 16/3 17/3 18/3

7,279.5 7,959.0 7,763.0

8,025.9

7,628.7

8,508.2 9,229.9 9,199.5

9,372.1 9,005.4

15/3 16/3 17/3 18/3 18/6

Net Liquid Assets

Interest-Bearing Debt

2,750.5 2,853.9

1,994.3

2,399.8 2,300.0

10.1 10.0

7.2

8.2 7.9

15/3 16/3 17/3 18/3 19/3

2,173.3 2,312.6

1,831.1

2,493.9

2,120.0

8.0 8.1

6.6

8.5

7.3

15/3 16/3 17/3 18/3 19/3

● ●

●

Forecast

(Max)

18

(Reference)

Transition of Financial Performance

(thousands of vehicles) Consolidated Vehicle Sales

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

* Total Liquid Assets (billions of yen)

Total Shareholder Return Dividend per Share (yen) (billions of yen) Ratio to Net Revenues (%) Depreciation Expenses (billions of yen) (billions of yen)

R&D Expenses Capital Expenditures

* Cash and cash equivalents, time deposits, marketable debt securities and its investment in monetary trust funds, excluding in each case those relating to financial services

Net Revenues Operating Income Net Income Operating Margin(%) Net Margin(%)

19

5,710

10,500

1,900

9,500

7,970

1,530

8,900

3,190

±0

Exports

Total

±0 Overseas

±0 Japan

Total

±0 Overseas

±0 Japan

Change

3,190

5,710

8,900

1,530

7,970

9,500

1,940

10,500

Revised Sales and

Production Plan for

CY2018

(’18/1-12)

<Change from the previous plan>

3,140 <+60>

5,780 <+10>

8,920 <+70>

9,500 <±0>

1,550 <±0>

7,950 <±0>

-

10,516 <+21>

(Reference)

FY2019 Forecasts: Vehicle Production and Retail Sales


T

o

y

o

t

a

&

L

e

x

u

s

Vehicle

Production

Vehicle

Retail Sales

1

2

*

*

New Forecasts (’18/4-’19/3)

Previous Forecasts (’18/4-’19/3)

Total Vehicle Retail Sales (Including Daihatsu- & Hino- brand)

* 2

*1 Including vehicle production by Toyota’s affiliates outside consolidation

*2 Including vehicle sales by Toyota’s affiliates outside consolidation

±0

+40

±0

20

(Reference)

Definitions of Consolidated and Retail Vehicle Sales

Daihatsu- and Hino- brand vehicles

Toyota- and Lexus- brand vehicles

Number of vehicles produced for wholesale

by Toyota Motor Corporation and its

consolidated subsidiaries

Number of vehicles produced for wholesale

by Toyota’s affiliates outside consolidation

(e.g. JV affiliates in China, etc)

Distrib

uto

rs or D

ealers ou

tside co

nso

lidatio

n

Cu

stom

ers

Total R

etail Veh

icle Sales

Toyo

ta and

Lexu

s Veh

icle Sales

*There is a limited number of exceptional cases where sales are made

other than in accordance with the flowchart above.

P19

P5, P11, P19

(in bottom

part)

P5,P11

Co

nso

lidated

Veh

icle Sales

Documents

FY2019 First Quarter Financial Results - Toyota · 2018-08-03 · Financial Results Toyota Motor Corporation August 3, 2018 . 2 Cautionary Statement with Respect to Forward-Looking