Final Results 4/10
Toyota Motor Corporation
10 May 2006
FINANCIAL SUMMARY
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
FY2006
(April 1, 2005 through March 31, 2006)
English translation from the original Japanese-language document
TOYOTA MOTOR CORPORATION
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
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.
This report contains summarized and condensed financial statements prepared in
accordance with accounting principles generally accepted in the United States of
America. Certain prior year amounts have been reclassified to conform to the
presentations for the year ended March 31, 2006.
OVERVIEW OF ASSOCIATED COMPANIES
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
Toyota Motor Corporation ('TMC') and its associated companies (523 consolidated
subsidiaries and 219 affiliates as of March 31, 2006) are engaged mainly in the
automotive industry and also in the financial services and other businesses.
The following three business segments are segmented on the basis as stated under
the 'Segment Information' according to the business category.
Automotive:
This business involves the design, manufacturing and distribution of sedans,
minivans, compact cars, sport-utility vehicles, trucks and related parts and
accessories. Automobiles are manufactured mainly by TMC, Hino Motors, Ltd., and
Daihatsu Motor Co., Ltd., but a portion of manufacturing is consigned to Toyota
Auto Body Co., Ltd. and others. Automobiles are also manufactured by Toyota
Motor Manufacturing, Kentucky, Inc. and other overseas companies. Automobile
parts are manufactured by TMC, Denso Corporation and others. These products are
sold through Tokyo Toyo-Pet Motor Sales Co., Ltd. and other dealers and to
certain large customers, directly by TMC. Overseas, sales are made through
Toyota Motor Sales, U.S.A., Inc. and other distributors and dealers. In
addition, Volkswagen vehicles are sold through TMC and some dealers in Japan.
Financial Services:
This business involves the provision of financing to support the sales of
automobiles and other products manufactured by TMC and its associated companies
and also covers the leasing of automobiles and equipment. Toyota Finance
Corporation in Japan, Toyota Motor Credit Corporation and other overseas
associated companies provide sales financing for TMC's products and the products
of its associated companies.
All other:
Other business includes the design, manufacturing and sale of housing,
telecommunications and other businesses. Housing is manufactured mainly by TMC
and sold through Toyota Housing Corporation and housing dealers in Japan.
* Consolidated subsidiaries, ** Companies accounted for under the equity method
Toyota Motor Corporation Flow of products
Flow of services
*Hino Motors, Ltd.
*Daihatsu Motor Co., Ltd.
Manufacturing companies in Japan Manufacturing companies overseas
*Toyota Motor Kyushu, Inc. *Toyota Motor Manufacturing, Kentucky, Inc.
*Toyota Motor Hokkaido, Inc. *Toyota Motor Manufacturing, Indiana, Inc.
*Toyota Auto Body Co., Ltd. *Toyota Motor Manufacturing Canada Inc.
*Kanto Auto Works, Ltd. *Toyota Motor Manufacturing (UK) Ltd.
**Toyota Industries Corporation *Toyota Motor Thailand Co., Limited
**Aichi Steel Corporation *Toyota Motor Corporation Australia Ltd.
**JTEKT Corporation *PT Astra Daihatsu Motor
**Aisin Seiki Co., Ltd. **New United Motor Manufacturing, Inc. etc.
**Denso Corporation
**Toyoda Gosei Co., Ltd.
**Toyota Boshoku Corporation
**Aisin AW Co., Ltd. etc.
Dealers in Japan Distributors overseas
*Tokyo Toyota Motor Co., Ltd. *Toyota Motor Sales, U.S.A., Inc.
*Tokyo Toyo-Pet Motor Sales Co., Ltd. *Toyota Deutschland G.m.b.H.
*Osaka Toyopet Co., Ltd. *Toyota (GB) PLC
*Toyota Tokyo Corolla Co., Ltd. *Hino Motor Sales (Thailand) Ltd.
*Tokyo Hino Motors, Ltd. *Daihatsu Deutschland GmbH. etc.
*Hyogo Daihatsu Hanbai Co., Ltd. etc.
Financial companies
* Toyota Finance Corporation
* Toyota Motor Credit Corporation Dealers overseas
etc.
Customers
Other major companies include Toyota Motor North America, Inc., which deals with
public relations and research activities in North America, Toyota Motor
Manufacturing, North America, Inc., which controls manufacturing companies in
North America, Toyota Motor Europe NV/SA, which controls manufacturing and sales
companies and deals with public relations and research activities in Europe, and
Toyota Financial Services Corporation, which controls the management of
financial companies.
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
Note: JTEKT Corporation was formed on January 1, 2006 through the merger and
change of trade name of Koyo Seiko Co., Ltd. and Toyoda Machine Works, Ltd.
For FY2006, the change in our major associated companies is as follows:
(Change in major associated companies)
Companies excluded from consolidated accounting: Toyota Motor Europe NV/SA
Toyota Motor Engineering & Manufacturing Europe NV/SA
Toyota Motor Europe NV/SA and Toyota Motor Engineering & Manufacturing Europe NV
/SA, both of which were consolidated subsidiaries of TMC as of September 30,
2005, merged into Toyota Motor Marketing Europe NV/SA, which is also a
consolidated subsidiary of TMC, as of October 1, 2005. Toyota Motor Marketing
Europe NV/SA changed its trade name to Toyota Motor Europe NV/SA as of the
effective date of the merger.
Toyota Motor North America, Inc., which was a consolidated subsidiary of TMC as
of March 31, 2006, merged into Toyota Technical Center USA, Inc., which is also
a consolidated subsidiary of TMC, as of April 1, 2006. Toyota Technical Center
USA, Inc. changed its trade name to Toyota Motor North America, Inc. as of the
effective date of the merger.
Toyota Motor Manufacturing North America, Inc. changed its trade name to Toyota
Motor Engineering &
Manufacturing North America, Inc. as of April 1, 2006.
MANAGEMENT POLICY
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
1. Toyota's Basic Management Policy
Toyota Motor Corporation ('TMC') holds up the 'Guiding Principles at Toyota
Motor Corporation' as its basic management policy and believes that efforts to
achieve the goals set forth in the principles will lead to an increase in
corporate value. The 'Guiding Principles at Toyota Motor Corporation' are as
follows:
(1) Honor the language and spirit of the law of every nation and undertake open
and fair corporate activities to be a good corporate citizen of the world.
(2) Respect the culture and customs of every nation and contribute to economic
and social development through corporate activities in the communities.
(3) Dedicate ourselves to providing clean and safe products and to enhancing the
quality of life everywhere through all our activities.
(4) Create and develop advanced technologies and provide outstanding products
and services that fulfill the needs of customers worldwide.
(5) Foster a corporate culture that enhances individual creativity and teamwork
value, while honoring mutual trust and respect between labor and management.
(6) Pursue growth in harmony with the global community through innovative
management.
(7) Work with business partners in research and creation to achieve stable,
long-term growth and mutual benefits, while keeping ourselves open to new
partnerships.
2. Basic Policy on the Distribution of Profits
TMC deems the benefit of its shareholders as one of its priority management
policies and strives to continuously increase per-share earnings, through
promoting its business aggressively while improving and strengthening its
corporate foundations. With respect to the payment of dividends, TMC seeks to
enhance the distribution of profits by striving to raise the consolidated
dividend payout ratio, with the aim of increasing it to 30% over the medium- to
long-term, while giving due consideration to factors such as the business
results of each term and new investment plans. Furthermore, we acquire treasury
stock to improve capital efficiency and respond appropriately to changes in the
business environment.
As we anticipate the continued growth in worldwide automotive markets, we will
utilize our internal funds to invest in improvement of product performance and
development of next-generation technologies to achieve future growth, to develop
production and sales networks domestically and overseas for further expansion of
our global business and to expand into new business areas, while securing solid
management foundation.
At TMC's 102nd ordinary general shareholders' meeting, which is scheduled to be
held on June 23, 2006, a proposal will be submitted to the shareholders to
revise the articles of incorporation to allow retained earnings to be
distributed in the form of dividends by resolution of the board of directors to
implement flexible capital policies in accordance with the business environment.
As in the past, two dividends will be declared each year - an interim
dividend and a year-end dividend - and in order to secure an opportunity
to seek shareholders' input, year-end dividends will be a matter for resolution
at the ordinary general shareholders' meeting.
3. Views and Policies on Reducing the Number of Shares per Unit of Investment
TMC reduced the number of shares per investment unit from 1,000 shares to 100
shares on August 1, 2000 to increase the liquidity of TMC shares and expand the
base of TMC investors. TMC will continuously consider setting an appropriate
unit of investment, taking into consideration, among other things, for TMC's
share price, turnover, the number of shareholders and the needs of investors.
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
4. Policy for the Granting of Stock Options and Other Incentive Plans
Currently, TMC maintains an incentive plan for granting stock options to our
directors, managing officers and senior managers, etc. Together with this plan,
TMC also maintains an incentive plan for the executives of its overseas
associated companies.
TMC believes that these incentive plans will heighten their willingness and
motivation to improve business performance in the medium- and long-term, enhance
international competitiveness and profitability, and contribute to increased
corporate value.
5. Medium- and Long-term Management Strategy
To continue its growth over the long-term, the Toyota Group will make combined
efforts to address the following agenda.
Immediate agenda in Japan include the continued introduction of the Lexus brand,
and the reinforcement of sales network through further clarification of the
channel identities of Toyota, Toyopet, Corolla, and Netz dealer channels.
Overseas, in North America, Europe, Asia, and other regions, Toyota Group is
working diligently towards the successful commencement of production at new
plants, and through further development of the foundation of production,
purchasing, and sales structures, promote corporate activities that are rooted
in the local regions.
Medium- to long-term strategies include, first of all, focus on development of
cutting-edge technologies and their use in products to continue providing
customers around the world with products that are environmentally-friendly,
safe, comfortable, and attractive. Second, the entire Toyota Group is making
concerted efforts to maintain and improve the world's highest levels of quality
and strengthen our cost competitiveness, and build optimal business structures
in order to achieve a balance between growth and efficiency. In addition,
Toyota strives to be a company with energy and dignity that fulfills its social
responsibilities by carrying out corporate social responsibility (CSR)
activities through philanthropic activities undertaken from a global perspective
and thorough corporate ethics including full compliance with applicable laws and
regulations. The origin of corporate competitiveness is the development of
human resources, and Toyota is training the highly-creative personnel that will
pass on Toyota's manufacturing technologies, skills and values to the next
generation.
By addressing these agenda, Toyota is working to enhance its corporate value as
a company that can compete successfully on a global scale and maintain growth in
harmony with society rooted in 'manufacturing' over 21st century.
6. Matters relating to parent companies
Not applicable.
BUSINESS RESULTS AND FINANCIAL POSITION
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
1. Summary of Consolidated Financial Results for FY2006
(1) Financial Results
During FY2006, the Japanese economy recovered moderately with higher capital
expenditure resulting from improved corporate revenues as well as personal
consumption steadily bottoming-out. Overseas, economic conditions were steady
overall, with higher capital expenditure and personal consumption in the United
States of America and with continuing high growth rates in Asian economy,
particularly in China.
Under these conditions, consolidated vehicle sales in Japan and overseas
increased by 566 thousand units, or 7.6%, to 7,974 thousand units in FY2006
compared with FY2005 (April 1, 2004 through March 31, 2005), marking a record
high. While vehicle sales in Japan decreased by 17 thousand units, or 0.7%, it
continues to maintain a high level of 2,364 thousand units in FY2006, as a
result of the sales efforts of dealers in Japan. Overseas vehicle sales
increased significantly in all regions by 583 thousand units, or 11.6%, to 5,610
thousand units in FY2006 compared with FY2005.
As for the results of operations for FY2006, net revenues increased by 2,485.4
billion yen, or 13.4%, to 21,036.9 billion yen in FY2006 compared with FY2005,
and operating income increased by 206.2 billion yen, or 12.3%, to 1,878.3
billion yen in FY2006 compared with FY2005. Among the factors contributing to
the increase in operating income totaling 670.0 billion yen, were the effects of
changes in exchange rates of 300.0 billion yen, marketing efforts of 240.0
billion yen and cost reduction efforts of 130.0 billion yen. On the other hand,
factors resulting in the decrease in operating income primarily included a
decrease in the gains recognized on the transfer of the substitutional portion
of the employee pension fund to the government of 47.2 billion yen and an
increase in expenses of 416.6 billion yen. Income before income taxes, minority
interest and equity in earnings of affiliated companies increased by 332.7
billion yen, or 19.0%, to 2,087.3 billion yen in FY2006 compared with FY2005.
Net income increased by 200.9 billion yen, or 17.2%, to 1,372.1 billion yen in
FY2006 compared with FY2005.
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
(2) Cash Flows
Cash flows from operating activities resulted in an increase in cash by 2,515.4
billion yen in FY2006, mainly due to net income of 1,372.1 billion yen. Net
cash provided by operating activities increased by 144.5 billion yen from
2,370.9 billion yen in FY2005. Cash flows from investing activities resulted in
a decrease in cash by 3,375.5 billion yen in FY2006, mainly due to the additions
to finance receivables of 6,476.9 billion yen. Net cash used in investing
activities increased by 314.4 billion yen from 3,061.1 billion yen in FY2005.
Cash flows from financing activities resulted in an increase in cash by 876.9
billion yen in FY2006. Net cash provided by financing activities increased by
457.6 billion yen from 419.3 billion yen in FY2005. After consideration of the
effect of exchange rate changes, cash and cash equivalents increased by 85.6
billion yen, or 5.8%, to 1,569.3 billion yen at the end of FY2006 compared with
the end of FY2005.
Regarding the consolidated cash flows by segment for FY2006, in non-financial
services business, net cash provided by operating activities was 2,022.5 billion
yen, net cash used in investing activities was 1,673.5 billion yen and net cash
used in financing activities was 313.3 billion yen. Meanwhile, in the financial
services business, net cash provided by operating activities was 583.9 billion
yen, net cash used in investing activities was 1,813.8 billion yen and net cash
provided by financing activities was 1,211.0 billion yen.
2. Consolidated Financial Results for FY2006 by Segment
(1) Segment Operating Results
Automotive:
Net revenues for the automotive operations increased by 2,224.6 billion yen, or
13.0%, to 19,338.1 billion yen in FY2006 compared with FY2005, and operating
income increased by 241.5 billion yen, or 16.6%, to 1,694.0 billion yen in
FY2006 compared with FY2005. The increase in operating income was mainly due to
the effects of changes in exchange rates, increases in both production volume
and vehicle units sold, and the effects of cost reduction efforts, partially
offset by a decrease in the gains recognized on the transfer of the
substitutional portion of the employee pension fund to the government and
increases in expenses.
Financial services:
Net revenues for the financial services operations increased by 215.7 billion
yen, or 27.6%, to 996.9 billion yen in FY2006 compared with FY2005, while
operating income decreased by 45.0 billion yen, or 22.4%, to 155.8 billion yen
in FY2006 compared with FY2005. The decrease in operating income was mainly
because of the valuation losses on interest rate swaps stated at fair value in
accordance with the Statement of Financial Accounting Standards (FAS) No. 133
(as amended by several guidance including FAS No. 138), as well as the gain in
FY2005 to record prior-year adjustments relating to accounting for loan
origination costs in accordance with FAS No. 91 by a sales finance subsidiary in
the United States of America, despite a steady increase in financing volumes.
All other:
Net revenues for all other businesses increased by 160.0 billion yen, or 15.5%,
to 1,190.3 billion yen in FY2006 compared with FY2005, and operating income
increased by 6.0 billion yen, or 17.8%, to 39.7 billion yen in FY2006 compared
with FY2005.
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
(2) Geographic Information
Japan:
Net revenues in Japan increased by 1,107.4 billion yen, or 9.2%, to 13,111.5
billion yen in FY2006 compared with FY2005, and operating income increased by
88.7 billion yen, or 9.0%, to 1,075.9 billion yen in FY2006 compared with
FY2005. The increase in operating income was mainly due to the effects of
changes in exchange rates and the effects of cost reduction efforts, partially
offset by a decrease in the gains recognized on the transfer of the
substitutional portion of the employee pension fund to the government and
increases in expenses.
North America:
Net revenues in North America increased by 1,314.5 billion yen, or 20.6%, to
7,687.9 billion yen in FY2006 compared with FY2005, and operating income
increased by 48.1 billion yen, or 10.7%, to 495.6 billion yen in FY2006 compared
with FY2005. The increase in operating income was mainly due to solid
performance as a result of increases in both local production volume and vehicle
units sold, as well as cost reduction efforts.
Europe:
Net revenues in Europe increased by 248.0 billion yen, or 10.0%, to 2,727.4
billion yen in FY2006 compared with FY2005, while operating income decreased by
14.6 billion yen, or 13.4%, to 93.9 billion yen in FY2006 compared with FY2005.
The decrease in operating income was mainly due to an increase in expenses,
partially offset by increases in both local production volume and vehicle units
sold.
Asia:
Net revenues in Asia increased by 417.4 billion yen, or 25.7%, to 2,042.8
billion yen in the FY2006 compared with FY2005, and operating income increased
by 51.7 billion yen, or 55.2%, to 145.5 billion yen in the FY2006 compared with
FY2005. The increase in operating income was mainly due to increases in both
local production volume and vehicle units sold, which resulted from the
favorable sales of IMV series vehicles.
Other:
Net revenues in other markets increased by 418.0 billion yen, or 35.3 %, to
1,601.7 billion yen in FY2006 compared with FY2005, and operating income
increased by 19.8 billion yen, or 41.6%, to 67.2 billion yen in FY2006 compared
with FY2005. The increase in operating income was primarily due to increases in
local production volumes as well as vehicle units sold, mainly IMV series
vehicles.
3. Distribution of Profits for FY2006
As for the dividends, in addition to the increase in interim dividends declared
in November 2005 by 10 yen per share to 35 yen per share, TMC plans to increase
the year-end dividends by 15 yen per share to 55 yen per share. As a result, on
a full-year basis, the dividends will be 90 yen per share, which is 25 yen
higher than in the previous year, and the consolidated dividend payout ratio for
FY2006 would be 21.3%.
On the other hand, during FY2006, TMC repurchased 27 million of its own shares
at an aggregate cost of 133,640 million yen.
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
4. Forecast of Financial Results for FY2007
Although we expect gradual growth in the world economy in the future, we face a
variety of unstable elements, including concerns about the future American
economy and high oil prices worldwide. The Japanese economy is on a recovery
trend, but troubling factors such as higher prices for raw materials and
fluctuations in exchange rates still remain. In the automobile industry, auto
makers from around the world are expanding development of next-generation
technologies that address issue of environment, safety, and energy, including
the large scale introduction of hybrid vehicles, and competition is expected to
become even more intense in the future.
Under these circumstances, current forecast of financial results for the next
fiscal year ending March 2007 is set forth below. This forecast assumes average
exchange rates through the fiscal year of 110 yen per US$1 and 135 yen per 1
euro.
Forecast of consolidated results for FY2007
Net revenues 22,300.0 billion yen (an increase of 6.0% compared with FY2006)
Operating income 1,900.0 billion yen (an increase of 1.2% compared with FY2006)
Income before income taxes, 1,970.0 billion yen (a decrease of 5.6% compared with FY2006)
minority interest and equity in
earnings of affiliated
companies
Net income 1,310.0 billion yen (a decrease of 4.5% compared with FY2006)
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.
When using forecast of financial results, please refer to the Cautionary
Statement with Respect to Forward-Looking Statements in the Financial Summary on
the inside cover.
CONSOLIDATED PRODUCTION AND SALES
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
1. Production
(Units)
FY2006 FY2005 Increase
(April 2005 through (April 2004 through (Decrease)
March 2006) March 2005)
Vehicles Japan 4,684,956 4,534,838 150,118
(new) North America 1,201,459 1,156,166 45,293
Europe 622,552 595,874 26,678
Asia 835,669 647,559 188,110
Other 367,011 297,539 69,472
Overseas total 3,026,691 2,697,138 329,553
Total 7,711,647 7,231,976 479,671
Houses (Japan) 5,269 5,115 154
Note: The total production of vehicles (new) includes 763,573 units of
Daihatsu brand vehicles (including OEM production) in FY2006 and 745,745 units
in FY2005, and 100,018 units of Hino brand vehicles (including OEM production)
in FY2006 and 93,470 units in FY2005 .
2. Sales (by destination)
(Units)
FY2006 FY2005 Increase
(April 2005 through (April 2004 through (Decrease)
March 2006) March 2005)
Vehicles Japan 2,364,484 2,381,325 (16,841)
(new) North America 2,556,050 2,271,139 284,911
Europe 1,022,781 978,963 43,818
Asia 880,661 833,507 47,154
Other 1,150,587 943,444 207,143
Overseas total 5,610,079 5,027,053 583,026
Total 7,974,563 7,408,378 566,185
Houses (Japan) 5,525 5,283 242
Note: The total sales of vehicles (new) includes 711,757 units of Daihatsu
brand vehicles in FY2006 and 703,497 units in FY2005, and 102,474 units of Hino
brand vehicles in FY2006 and 95,318 units in FY2005.
BREAKDOWN OF CONSOLIDATED NET REVENUES
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
(Amounts are rounded to the nearest
million yen)
FY2006 FY2005 Increase
(April 2005 through (April 2004 through (Decrease)
March 2006) March 2005)
Vehicles 16,584,317 14,803,255 1,781,062
Parts & components for overseas 298,492 236,592 61,900
production
Parts 1,311,617 1,091,673 219,944
Other 1,131,190 966,895 164,295
Total Automotive 19,325,616 17,098,415 2,227,201
Financial services 977,416 760,664 216,752
Housing 138,103 136,100 2,003
Telecommunications 51,485 44,661 6,824
Other 544,289 511,686 32,603
Total 21,036,909 18,551,526 2,485,383
Note: The amounts represent net revenues to external customers.
CONSOLIDATED STATEMENTS OF INCOME
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
(Amounts are rounded to the nearest
million yen)
FY2006 FY2005 Increase
(April 2005 through (April 2004 through (Decrease)
March 2006) March 2005)
Net revenues : 21,036,909 18,551,526 2,485,383
Sales of products 20,059,493 17,790,862 2,268,631
Financing operations 977,416 760,664 216,752
Costs and expenses : 19,158,567 16,879,339 2,279,228
Cost of products sold 16,335,312 14,500,282 1,835,030
Cost of financing operations 609,632 369,844 239,788
Selling, general and administrative 2,213,623 2,009,213 204,410
Operating income 1,878,342 1,672,187 206,155
Other income (expense) : 209,018 82,450 126,568
Interest and dividend income 93,970 67,519 26,451
Interest expense (21,601) (18,956) (2,645)
Foreign exchange gain, net 10,789 21,419 (10,630)
Other income, net 125,860 12,468 113,392
Income before income taxes, minority interest 2,087,360 1,754,637 332,723
and equity in earnings of affiliated companies
Provision for income taxes 795,153 657,910 137,243
Income before minority interest and equity in 1,292,207 1,096,727 195,480
earnings of affiliated companies
Minority interest in consolidated subsidiaries (84,393) (64,938) (19,455)
Equity in earnings of affiliated companies 164,366 139,471 24,895
Net income 1,372,180 1,171,260 200,920
(Yen)
Net income per share - Basic 421.76 355.35 66.41
Net income per share - Diluted 421.62 355.28 66.34
CONSOLIDATED BALANCE SHEETS
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
(Amounts are rounded to the nearest million yen)
FY2006 FY2005 Increase
(As of March 31, 2006) (As of March 31, 2005) (Decrease)
Assets
Current assets: 10,735,222 9,440,105 1,295,117
Cash and cash equivalents 1,569,387 1,483,753 85,634
Time deposits 50,349 63,609 (13,260)
Marketable securities 634,879 543,124 91,755
Trade accounts and notes receivable, 1,980,680 1,813,725 166,955
less allowance for doubtful accounts
Finance receivables, net 3,497,319 3,010,135 487,184
Other receivables 416,336 355,381 60,955
Inventories 1,620,975 1,306,709 314,266
Deferred income taxes 520,494 475,764 44,730
Prepaid expenses and other current assets 444,803 387,905 56,898
Noncurrent finance receivables, net 4,830,216 3,976,941 853,275
Investments and other assets: 6,099,529 5,122,371 977,158
Marketable securities and other securities 3,402,523 2,704,142 698,381
investments
Affiliated companies 1,828,369 1,570,185 258,184
Employees receivables 75,094 49,538 25,556
Other 793,543 798,506 (4,963)
Property, plant and equipment: 7,066,628 5,795,594 1,271,034
Land 1,215,897 1,182,768 33,129
Buildings 3,156,613 2,935,274 221,339
Machinery and equipment 8,482,832 7,897,509 585,323
Vehicles and equipment on operating leases 2,605,426 1,828,697 776,729
Construction in progress 397,076 214,781 182,295
Less - Accumulated depreciation (8,791,216) (8,263,435) (527,781)
Total assets 28,731,595 24,335,011 4,396,584
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
(Amounts are rounded to the nearest
million yen)
FY2006 FY2005 Increase
(As of March 31, 2006) (As of March 31, 2005) (Decrease)
Liabilities
Current liabilities: 10,028,735 8,227,206 1,801,529
Short-term borrowings 3,033,019 2,381,827 651,192
Current portion of long-term debt 1,723,888 1,150,920 572,968
Accounts payable 2,086,587 1,856,799 229,788
Other payables 730,184 693,041 37,143
Accrued expenses 1,464,263 1,289,373 174,890
Income taxes payable 347,488 292,835 54,653
Other current liabilities 643,306 562,411 80,895
Long-term liabilities: 7,552,831 6,557,926 994,905
Long-term debt 5,640,490 5,014,925 625,565
Accrued pension and severance costs 679,918 646,989 32,929
Deferred income taxes 1,092,995 811,670 281,325
Other long-term liabilities 139,428 84,342 55,086
Total liabilities 17,581,566 14,785,132 2,796,434
Minority interest in consolidated subsidiaries 589,580 504,929 84,651
Shareholders' equity
Common stock 397,050 397,050 -
Additional paid-in capital 495,250 495,707 (457)
Retained earnings 10,459,788 9,332,176 1,127,612
Accumulated other comprehensive income 437,316 (80,660) 517,976
(loss)
Treasury stock, at cost (1,228,955) (1,099,323) (129,632)
Total shareholders' equity 10,560,449 9,044,950 1,515,499
Total liabilities and shareholders' equity 28,731,595 24,335,011 4,396,584
CONSOLIDATED STATEMENTS OF
SHAREHOLDERS' EQUITY
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
(1) FY2006 (April 2005 through March 2006)
(Amounts are rounded to the nearest
million yen)
Common Additional Retained Accumulated Treasury Total
stock paid-in earnings other stock, shareholders'
capital comprehensive at cost equity
income (loss)
Balances at March 31, 2005 397,050 495,707 9,332,176 (80,660) (1,099,323) 9,044,950
Issuance during the year (457) (457)
Comprehensive income:
Net income 1,372,180 1,372,180
Other comprehensive income
Foreign currency 268,410 268,410
translation adjustments
Unrealized gains on 244,629 244,629
securities, net of
reclassification adjustments
Minimum pension liability 4,937 4,937
adjustments
Total comprehensive income 1,890,156
Dividends paid (244,568) (244,568)
Purchase and reissuance of common (129,632) (129,632)
stock
Balances at March 31, 2006 397,050 495,250 10,459,788 437,316 (1,228,955) 10,560,449
(2) FY2005 (April 2004 through March 2005)
(Amounts are rounded to the nearest
million yen)
Common Additional Retained Accumulated Treasury Total
stock paid-in earnings other stock, shareholders'
capital comprehensive at cost equity
income (loss)
Balances at March 31, 2004 397,050 495,179 8,326,215 (204,592) (835,285) 8,178,567
Issuance during the year 528 528
Comprehensive income:
Net income 1,171,260 1,171,260
Other comprehensive income
Foreign currency 75,697 75,697
translation adjustments
Unrealized gains on 38,455 38,455
securities, net of
reclassification adjustments
Minimum pension liability 9,780 9,780
adjustments
Total comprehensive income 1,295,192
Dividends paid (165,299) (165,299)
Purchase and reissuance of common (264,038) (264,038)
stock
Balances at March 31, 2005 397,050 495,707 9,332,176 (80,660) (1,099,323) 9,044,950
CONSOLIDATED STATEMENTS OF CASH FLOWS
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
(Amounts are rounded to the nearest
million yen)
FY2006 FY2005
(April 2005 through (April 2004 through
March 2006) March 2005)
Cash flows from operating activities :
Net income 1,372,180 1,171,260
Adjustments to reconcile net income to net cash provided by
operating activities
Depreciation 1,211,178 997,713
Provision for doubtful accounts and credit losses 62,646 63,154
Pension and severance costs, less payments 23,860 (52,933)
Loss on disposal of fixed assets 54,981 49,159
Unrealized losses on available-for-sale securities, net 4,163 2,324
Deferred income taxes 33,262 84,711
Minority interest in consolidated subsidiaries 84,393 64,938
Equity in earnings of affiliated companies (164,366) (139,471)
Changes in operating assets and liabilities and other (166,817) 130,085
Net cash provided by operating activities 2,515,480 2,370,940
Cash flows from investing activities :
Additions to finance receivables (6,476,979) (5,594,375)
Collection of and proceeds from sales of finance receivables 5,718,130 4,674,919
Additions to fixed assets excluding equipment leased to others (1,523,459) (1,068,287)
Additions to equipment leased to others (1,247,781) (854,953)
Proceeds from sales of fixed assets excluding equipment 89,578 69,396
leased to others
Proceeds from sales of equipment leased to others 410,683 316,456
Purchases of marketable securities and security investments (957,296) (1,165,791)
Proceeds from sales of and maturity of marketable securities 691,032 573,943
and security investments
Payment for additional investments in affiliated companies, (1,802) (901)
net of cash acquired
Changes in investments and other assets and other (77,606) (11,603)
Net cash used in investing activities (3,375,500) (3,061,196)
Cash flows from financing activities :
Purchase of common stock (129,629) (264,106)
Proceeds from issuance of long-term debt 1,928,788 1,863,710
Payments of long-term debt (1,187,506) (1,155,223)
Increase in short-term borrowings 509,826 140,302
Dividends paid (244,568) (165,299)
Net cash provided by financing activities 876,911 419,384
Effect of exchange rate changes on cash and cash equivalents 68,743 24,849
Net increase (decrease) in cash and cash equivalents 85,634 (246,023)
Cash and cash equivalents at beginning of year 1,483,753 1,729,776
Cash and cash equivalents at end of year 1,569,387 1,483,753
Note: In the Consolidated Statements of Cash Flows, cash and cash equivalents
include cash on hand, bank deposits that can be withdrawn at any time and
short-term investments that can be converted into cash at any time and carry
minimal risk of change in value.
SEGMENT INFORMATION
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
1. Segment Operating Results and Assets
(1) FY2006 (April 2005 through March 2006)
(Amounts are rounded to the nearest
million yen)
Automotive Financial All Other Intersegment Consolidated
Services Elimination and/or
Unallocated
Amount
Net revenues:
(1) Sales to external 19,325,616 977,416 733,877 - 21,036,909
customers
(2) Intersegment sales 12,528 19,493 456,414 (488,435) -
and transfers
Total 19,338,144 996,909 1,190,291 (488,435) 21,036,909
Operating expenses 17,644,099 841,092 1,150,543 (477,167) 19,158,567
Operating income 1,694,045 155,817 39,748 (11,268) 1,878,342
Assets 12,354,827 11,613,508 1,191,261 3,571,999 28,731,595
Investment in equity 1,459,556 287,326 - 73,835 1,820,717
method investees
Depreciation expenses 880,360 301,734 29,084 - 1,211,178
Capital expenditure 1,615,814 1,110,191 45,282 (47) 2,771,240
(2) FY2005 (April 2004 through March 2005)
(Amounts are rounded to the nearest
million yen)
Automotive Financial All Other Intersegment Consolidated
Services Elimination and/or
Unallocated Amount
Net revenues:
(1) Sales to external 17,098,415 760,664 692,447 - 18,551,526
customers
(2) Intersegment sales 15,120 20,597 337,873 (373,590) -
and transfers
Total 17,113,535 781,261 1,030,320 (373,590) 18,551,526
Operating expenses 15,661,000 580,408 996,577 (358,646) 16,879,339
Operating income 1,452,535 200,853 33,743 (14,944) 1,672,187
Assets 11,141,197 9,487,248 1,025,517 2,681,049 24,335,011
Investment in equity 1,271,044 215,642 - 75,746 1,562,432
method investees
Depreciation expenses 754,339 220,584 22,790 - 997,713
Capital expenditure 1,161,757 726,777 50,555 (15,849) 1,923,240
Note: Unallocated corporate assets included under 'Intersegment Elimination
and/or Unallocated Amount' for FY2006 and FY2005 are 4,231,148 million yen and
3,308,055 million yen, respectively, and consist primarily of funds such as cash
and cash equivalents, marketable securities and portion security investments
held by TMC.
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
2. Consolidated Financial Statements as Classified into Non-Financial Services
Business and Financial Services Business
(1) Consolidated Statements of Income as Classified into Non-Financial Services
Business and Financial Services Business
(Amounts are rounded to the nearest
million yen)
FY2006 FY2005 Increase
(April 2005 through (April 2004 through (Decrease)
March 2006) March 2005)
(Non-financial services)
Net revenues 20,068,284 17,800,357 2,267,927
Costs and expenses: 18,328,868 16,310,540 2,018,328
Cost of revenues 16,335,340 14,497,252 1,838,088
Selling, general and administrative 1,993,528 1,813,288 180,240
Operating income 1,739,416 1,489,817 249,599
Other income, net 201,978 68,736 133,242
Income before income taxes, 1,941,394 1,558,553 382,841
minority interest and equity in earnings
of affiliated companies
Provision for income taxes 736,909 578,709 158,200
Income before minority interest and equity in 1,204,485 979,844 224,641
earnings of affiliated companies
Minority interest in consolidated subsidiaries (82,401) (63,952) (18,449)
Equity in earnings of affiliated companies 142,139 131,849 10,290
Net income 1,264,223 1,047,741 216,482
(Financial services)
Net revenues 996,909 781,261 215,648
Costs and expenses: 841,092 580,408 260,684
Cost of revenues 613,563 376,150 237,413
Selling, general and administrative 227,529 204,258 23,271
Operating income 155,817 200,853 (45,036)
Other expenses, net (9,859) (4,764) (5,095)
Income before income taxes, minority interest 145,958 196,089 (50,131)
and equity in earnings of
affiliated companies
Provision for income taxes 58,241 78,748 (20,507)
Income before minority interest and equity in 87,717 117,341 (29,624)
earnings of affiliated companies
Minority interest in consolidated subsidiaries (1,992) (988) (1,004)
Equity in earnings of affiliated companies 22,227 7,622 14,605
Net income 107,952 123,975 (16,023)
(Elimination)
Elimination of net income 5 (456) 461
(Consolidated)
Net income 1,372,180 1,171,260 200,920
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
(2) Consolidated Balance Sheets as Classified into Non-Financial Services
Business and Financial Services Business
(Amounts are rounded to the nearest
million yen)
FY2006 FY2005 Increase
(As of March 31, 2006) (As of March 31, 2005) (Decrease)
Assets
(Non-financial services)
Current assets: 7,154,653 6,401,152 753,501
Cash and cash equivalents 1,418,022 1,324,126 93,896
Time deposits 14,024 8,006 6,018
Marketable securities 633,036 541,785 91,251
Trade accounts and notes receivable, 2,002,577 1,837,539 165,038
less allowance for doubtful accounts
Inventories 1,620,975 1,306,709 314,266
Prepaid expenses and other current 1,466,019 1,382,987 83,032
assets
Investments and other assets 5,702,376 4,804,843 897,533
Property, plant and equipment 5,207,760 4,579,052 628,708
Total 18,064,789 15,785,047 2,279,742
(Financial services)
Current assets: 4,361,374 3,836,650 524,724
Cash and cash equivalents 151,365 159,627 (8,262)
Time deposits 36,325 55,603 (19,278)
Marketable securities 1,843 1,339 504
Finance receivables, net 3,497,319 3,010,135 487,184
Prepaid expenses and other current 674,522 609,946 64,576
assets
Noncurrent finance receivables, net 4,830,216 3,976,941 853,275
Investments and other assets 563,050 457,115 105,935
Property, plant and equipment 1,858,868 1,216,542 642,326
Total 11,613,508 9,487,248 2,126,260
(Elimination)
Elimination of assets (946,702) (937,284) (9,418)
(Consolidated)
Total assets 28,731,595 24,335,011 4,396,584
Note: Assets in the non-financial services include unallocated corporate
assets.
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
(Amounts are rounded to the nearest
million yen)
FY2006 FY2005 Increase
(As of March 31, 2006) (As of March 31, 2005) (Decrease)
Liabilities
(Non-financial services)
Current liabilities: 5,774,891 5,139,351 635,540
Short-term borrowings 797,969 713,474 84,495
Current portion of long-term debt 68,299 60,092 8,207
Accounts payable 2,084,399 1,847,036 237,363
Accrued expenses 1,357,335 1,200,122 157,213
Income taxes payable 328,360 263,291 65,069
Other current liabilities 1,138,529 1,055,336 83,193
Long-term liabilities: 2,230,611 1,957,404 273,207
Long-term debt 730,072 747,911 (17,839)
Accrued pension and severance costs 676,999 645,308 31,691
Other long-term liabilities 823,540 564,185 259,355
Total 8,005,502 7,096,755 908,747
(Financial services)
Current liabilities: 5,040,058 3,789,503 1,250,555
Short-term borrowings 2,932,799 2,269,197 663,602
Current portion of long-term debt 1,662,589 1,092,328 570,261
Accounts payable 9,273 15,542 (6,269)
Accrued expenses 111,133 93,042 18,091
Income taxes payable 19,128 29,544 (10,416)
Other current liabilities 305,136 289,850 15,286
Long-term liabilities: 5,483,284 4,836,755 646,529
Long-term debt 5,071,482 4,503,247 568,235
Accrued pension and severance costs 2,919 1,681 1,238
Other long-term liabilities 408,883 331,827 77,056
Total 10,523,342 8,626,258 1,897,084
(Elimination)
Elimination of liabilities (947,278) (937,881) (9,397)
(Consolidated)
Total liabilities 17,581,566 14,785,132 2,796,434
(Consolidated)
Minority interest in consolidated 589,580 504,929 84,651
subsidiaries
Shareholders' equity
(Consolidated)
Common stock 397,050 397,050 -
Additional paid-in capital 495,250 495,707 (457)
Retained earnings 10,459,788 9,332,176 1,127,612
Accumulated other 437,316 (80,660) 517,976
comprehensive income (loss)
Treasury stock, at cost (1,228,955) (1,099,323) (129,632)
Total shareholders' equity 10,560,449 9,044,950 1,515,499
(Consolidated)
Total liabilities and shareholders' equity 28,731,595 24,335,011 4,396,584
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
(3) Consolidated Statements of Cash Flows as Classified into Non-Financial
Services Business and Financial Services Business
(Amounts are rounded to the nearest
million yen)
FY2006 FY2005
(April 2005 through (April 2004 through
March 2006) March 2005)
(Non-financial services)
Cash flows from operating activities:
Net income 1,264,223 1,047,741
Adjustments to reconcile net income to net cash provided by
operating activities
Depreciation 909,444 777,129
Provision for doubtful accounts and credit losses 10,361 15,752
Pension and severance costs, less payments 22,664 (53,401)
Loss on disposal of fixed assets 54,614 48,334
Unrealized losses on available-for-sale securities, net 4,163 2,324
Deferred income taxes 31,370 29,398
Minority interest in consolidated subsidiaries 82,401 63,952
Equity in earnings of affiliated companies (142,139) (131,849)
Changes in operating assets and liabilities and other (214,507) (97,535)
Net cash provided by operating activities 2,022,594 1,701,845
Cash flows from investing activities:
Additions to fixed assets excluding equipment leased to others (1,516,658) (1,049,572)
Additions to equipment leased to others (144,391) (146,891)
Proceeds from sales of fixed assets excluding equipment leased to 81,950 60,034
others
Proceeds from sales of equipment leased to others 112,692 84,450
Purchases of marketable securities and security investments (764,016) (1,053,417)
Proceeds from sales of and maturity of marketable securities and 561,948 471,614
security investments
Payment for additional investments in affiliated companies, net of (1,802) (901)
cash acquired
Changes in investments and other assets and other (3,292) 84,979
Net cash used in investing activities (1,673,569) (1,549,704)
Cash flows from financing activities:
Purchase of common stock (129,629) (264,106)
Proceeds from issuance of long-term debt 33,904 27,363
Payments of long-term debt (59,778) (59,689)
Decrease in short-term borrowings 86,731 564
Dividends paid (244,568) (165,299)
Other - (7,000)
Net cash used in financing activities (313,340) (468,167)
Effect of exchange rate changes on cash and cash equivalents 58,211 21,276
Net increase (decrease) in cash and cash equivalents 93,896 (294,750)
Cash and cash equivalents at beginning of year 1,324,126 1,618,876
Cash and cash equivalents at end of year 1,418,022 1,324,126
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
(Amounts are rounded to the nearest
million yen)
FY2006 FY2005
(April 2005 through (April 2004 through
March 2006) March 2005)
(Financial services)
Cash flows from operating activities:
Net income 107,952 123,975
Adjustments to reconcile net income to net cash provided by
operating activities
Depreciation 301,734 220,584
Provision for doubtful accounts and credit losses 52,285 47,402
Pension and severance costs, less payments 1,196 468
Loss on disposal of fixed assets 367 825
Deferred income taxes 1,889 54,860
Minority interest in consolidated subsidiaries 1,992 988
Equity in earnings of affiliated companies (22,227) (7,622)
Changes in operating assets and liabilities and other 138,766 203,762
Net cash provided by operating activities 583,954 645,242
Cash flows from investing activities:
Additions to finance receivables (11,407,390) (9,562,203)
Collection of and proceeds from sales of finance receivables 10,545,425 8,586,796
Additions to fixed assets excluding equipment leased to others (6,801) (18,715)
Additions to equipment leased to others (1,103,390) (708,062)
Proceeds from sales of fixed assets excluding equipment leased to 7,628 9,362
others
Proceeds from sales of equipment leased to others 297,991 232,006
Purchases of marketable securities and security investments (193,280) (112,374)
Proceeds from sales of and maturity of marketable securities and 129,084 102,329
security investments
Changes in investments and other assets and other (83,104) (16,485)
Net cash used in investing activities (1,813,837) (1,487,346)
Cash flows from financing activities:
Proceeds from issuance of long-term debt 1,930,823 1,862,012
Payments of long-term debt (1,233,336) (1,160,710)
Increase in short-term borrowings 513,602 178,956
Other - 7,000
Net cash provided by financing activities 1,211,089 887,258
Effect of exchange rate changes on cash and cash equivalents 10,532 3,573
Net increase (decrease) in cash and cash equivalents (8,262) 48,727
Cash and cash equivalents at beginning of year 159,627 110,900
Cash and cash equivalents at end of year 151,365 159,627
(Consolidated)
Effect of exchange rate changes on cash and cash equivalents 68,743 24,849
Net increase (decrease) in cash and cash equivalents 85,634 (246,023)
Cash and cash equivalents at beginning of year 1,483,753 1,729,776
Cash and cash equivalents at end of year 1,569,387 1,483,753
Note: In the Consolidated Statements of Cash Flows, cash and cash equivalents
include cash on hand, bank deposits that can be withdrawn at any time and
short-term investments that can be converted into cash at any time and carry
minimal risk of change in value.
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
3. Geographic Information
(1) FY2006 (April 2005 through March 2006)
(Amounts are rounded to the
nearest million yen)
Japan North Europe Asia Other Intersegment Consolidated
America Elimination
and/or
Unallocated
Amount
Net revenues:
(1) Sales to 7,735,109 7,455,818 2,574,014 1,836,855 1,435,113 - 21,036,909
external customers
(2) Intersegment 5,376,348 232,124 153,395 205,951 166,623 (6,134,441) -
sales and transfers
Total 13,111,457 7,687,942 2,727,409 2,042,806 1,601,736 (6,134,441) 21,036,909
Operating expenses 12,035,567 7,192,304 2,633,462 1,897,260 1,534,546 (6,134,572) 19,158,567
Operating income 1,075,890 495,638 93,947 145,546 67,190 131 1,878,342
Assets 12,177,125 9,199,818 2,471,258 1,255,350 1,299,072 2,328,972 28,731,595
(2) FY2005 (April 2004 through March 2005)
(Amounts are rounded to the
nearest million yen)
Japan North Europe Asia Other Intersegment Consolidated
America Elimination
and/or
Unallocated
Amount
Net revenues:
(1) Sales to 7,408,136 6,187,624 2,305,450 1,572,113 1,078,203 - 18,551,526
external customers
(2) Intersegment 4,596,019 185,829 173,977 53,309 105,499 (5,114,633) -
sales and transfers
Total 12,004,155 6,373,453 2,479,427 1,625,422 1,183,702 (5,114,633) 18,551,526
Operating expenses 11,016,913 5,925,894 2,370,886 1,531,650 1,136,248 (5,102,252) 16,879,339
Operating income 987,242 447,559 108,541 93,772 47,454 (12,381) 1,672,187
Assets 10,740,796 7,738,898 2,242,566 945,635 998,172 1,668,944 24,335,011
Note: Unallocated corporate assets included under 'Intersegment Elimination
and/or Unallocated Amount' for FY2006 and FY2005 are 4,231,148 million yen,
3,308,055 million yen , respectively, and consist primarily of funds such as
cash and cash equivalents, marketable securities and portion of security
investments held by TMC.
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
4. Overseas Sales
(1) FY2006 (April 2005 through March 2006)
(Amounts are rounded to the
nearest million yen)
North America Europe Asia Other Total
Overseas sales 7,687,738 2,607,819 2,005,777 2,721,981 15,023,315
Consolidated sales - - - - 21,036,909
Ratio of overseas sales % % % % %
to consolidated sales 36.6 12.4 9.5 12.9 71.4
(2) FY2005 (April 2004 through March 2005)
(Amounts are rounded to the
nearest million yen)
North America Europe Asia Other Total
Overseas sales 6,374,235 2,365,525 1,776,554 2,089,210 12,605,524
Consolidated sales - - - - 18,551,526
Ratio of overseas sales % % % % %
to consolidated sales 34.4 12.8 9.6 11.2 68.0
UNCONSOLIDATED STATEMENTS OF INCOME
(All financial information has been prepared in accordance with accounting
principles generally accepted in Japan)
(Million yen; amounts less than one million yen are omitted)
FY2006 FY2005 Increase
(April 2005 through (April 2004 through (Decrease)
March 2006) March 2005)
Net sales 10,191,838 9,218,386 973,452
Cost of sales 8,248,627 7,506,044 742,583
Selling, general and administrative expenses 1,095,212 1,010,951 84,261
Operating income 847,998 701,390 146,608
Non-operating income 342,165 273,440 68,725
Interest income 18,686 15,765 2,921
Dividend income 228,670 152,083 76,587
Other non-operating income 94,808 105,591 (10,783)
Non-operating expenses 85,382 118,598 (33,216)
Interest expenses 10,715 10,729 (14)
Other non-operating expenses 74,666 107,869 (33,203)
Ordinary income 1,104,781 856,231 248,550
Extraordinary losses - 24,996 (24,996)
- 24,996 (24,996)
Impairment losses 1,104,781 831,235 273,546
Income before income taxes
Income taxes - current 354,100 281,700 72,400
Income taxes - deferred (15,279) 20,205 (35,484)
Net income 765,961 529,329 236,632
Unappropriated retained earnings brought
forward
512,778 497,867 14,911
Loss on sales of treasury stock 388 184 204
Interim cash dividends 113,844 82,049 31,795
Unappropriated retained earnings
at end of year
1,164,506 944,962 219,544
PROPOSED APPROPRIATION OF UNCONSOLIDATED RETAINED EARNINGS
(All financial information has been prepared in accordance with accounting
principles generally accepted in Japan)
(Million yen except 'per share'
amounts; amounts less than one million yen are omitted)
FY2006 FY2005
Unappropriated retained earnings at end of year 1,164,506 944,962
Reversal of reserve for losses on overseas 33 55
investments
Reversal of reserve for reduction of 24 -
acquisition cost of fixed assets
Total 1,164,564 945,018
The proposed appropriation is as follows:
Cash dividends 178,296 130,723
(JPY55 per share) (JPY40 per share)
Bonuses to directors 676 614
Bonuses to corporate auditors 51 51
Reserve for special depreciation 830 739
Reserve for reduction of acquisition cost of - 111
fixed assets
General reserve 400,000 300,000
Unappropriated retained earnings to be carried 584,710 512,778
forward
Note: An interim dividend of JPY35 per share was paid on November 25, 2005, to
shareholders (including the beneficial shareholders notified by Japanese
Securities Depository Center) or registered pledgees, listed on the
shareholders' record as of September 30, 2005. Total interim dividends paid
were in amount of 113,844 million yen.
UNCONSOLIDATED BALANCE SHEETS
(All financial information has been prepared in accordance with accounting
principles generally accepted in Japan)
(Million yen; amounts less than one million yen are omitted)
FY2006 FY2005 Increase
(As of March 31,2006) (As of March 31,2005) (Decrease)
Assets
Current assets 3,795,723 3,453,441 342,282
Cash and deposits 107,674 60,275 47,399
Trade accounts receivable 1,206,641 1,088,735 117,906
Marketable securities 922,033 870,735 51,298
Finished goods 147,413 116,864 30,549
Raw materials 27,336 14,747 12,589
Work in process 109,970 82,069 27,901
Supplies 8,177 8,091 86
Short-term loans 476,766 511,757 (34,991)
Deferred income taxes 259,372 248,110 11,262
Other 536,835 459,153 77,682
Less: allowance for doubtful (6,500) (7,100) 600
accounts
Fixed assets 6,113,286 5,617,550 495,736
Property, plant and equipment 1,279,608 1,258,835 20,773
Buildings 377,018 371,515 5,503
Structures 40,401 41,537 (1,136)
Machinery and equipment 291,186 314,168 (22,982)
Vehicle and delivery equipment 13,663 16,109 (2,446)
Tools, furniture and fixtures 88,795 83,012 5,783
Land 385,886 388,658 (2,772)
Construction in progress 82,656 43,834 38,822
Investments and other assets 4,833,678 4,358,714 474,964
Investments in securities 2,314,903 1,817,556 497,347
Investments in subsidiaries and 1,945,521 1,931,634 13,887
affiliates
Long-term loans 476,422 362,951 113,471
Deferred income taxes - 129,571 (129,571)
Other 127,430 140,600 (13,170)
Less: allowance for doubtful accounts (30,600) (23,600) (7,000)
Total assets 9,909,010 9,070,991 838,019
(All financial information has been prepared in accordance with accounting
principles generally accepted in Japan)
(Million yen; amounts less than one million yen are omitted)
FY2006 FY2005 Increase
(As of March 31,2006) (As of March 31,2005) (Decrease)
Liabilities
Current liabilities 2,379,900 2,180,374 199,526
Trade notes payable 1,117 1,375 (258)
Trade accounts payable 1,044,613 909,108 135,505
Current portion of bonds - 600 (600)
Other payables 393,585 401,464 (7,879)
Income taxes payable 218,256 144,730 73,526
Accrued expenses 491,032 443,165 47,867
Deposits received 207,254 250,648 (43,394)
Allowance for EXPO 2005 Aichi - 67 (67)
Other 24,040 29,214 (5,174)
Long-term liabilities 842,213 832,806 9,407
Bonds 500,000 500,000 -
Allowance for retirement benefits 288,961 289,694 (733)
Deferred income taxes 24,798 - 24,798
Other 28,454 43,111 (14,657)
Total liabilities 3,222,114 3,013,181 208,933
Shareholders' equity
Common stock 397,049 397,049 -
Capital surplus 416,970 416,970 -
Capital reserve 416,970 416,970 -
Retained earnings 6,614,868 6,094,528 520,340
Legal reserve 99,454 99,454 -
Reserve for losses on overseas 197 252 (55)
investments
Reserve for special depreciation 3,196 2,457 739
Reserve for reduction of 6,586 6,475 111
acquisition cost of fixed assets
General reserve 5,340,926 5,040,926 300,000
Unappropriated retained earnings 1,164,506 944,962 219,544
at end of year
Net unrealized gains on other securities 518,155 279,780 238,375
Less: treasury stock (1,260,148) (1,130,519) (129,629)
Total shareholders' equity 6,686,895 6,057,810 629,085
Total liabilities and shareholders' equity 9,909,010 9,070,991 838,019
This information is provided by RNS
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