Final Results - Part 1
Toyota Motor Corporation
16 May 2001
PART 1
Toyota Reports Record Year-end Results'
Increased Localized Production, Successful Product Launches Play Key Role
(All financial information has been prepared in accordance with Generally
Accepted Accounting Principles in Japan)
Tokyo-TOYOTA MOTOR CORPORATION (TMC) today announced record operating
results for the fiscal year ended March 31, 2001.
On a consolidated basis, net sales for the 12 months ended March 31,
2001, increased 4.2 percent year-over-year to 13.4 trillion yen, an
all-time high. Operating income hit a new peak at 870.1 billion yen, an
increase of 12.1 percent versus the same period last year, while ordinary
income rose 22.0 percent to a highest-ever 972.2 billion yen. Net income
climbed 15.9 percent to 471.2 billion yen, also a record. Earnings per
share for the year were 127.88 yen, an increase of 17.93 yen over the
fiscal year ended March 31, 2000.
Unconsolidated net sales for the period were 7.9 trillion yen, an
increase of 6.7 percent versus the same period last year. Operating
income increased 3.0 percent to 506.8 billion yen, while ordinary income
was 621.7 billion yen, up 14.8 percent. Net income totaled 333.5 billion
yen, up 1.3 percent.
TMC also announced a second-half cash dividend for the six months ended
March 31, 2001, of 14 yen per share. Total dividend payout for the full
year was 25 yen per share, an increase of 1 yen per share over the previous
year.
Commenting on the results, TMC President Fujio Cho said, 'Toyota's
record performance is a reflection of our ongoing commitment to meet the
needs of a wide variety of customers. Our aggressive product launch
strategy helped increase our market share in Japan to 43.1 percent,
excluding mini-vehicles, an all-time high.
'At the same time, we continue to benefit from increased local
production. In January, we began manufacturing the Yaris (known as the
Vitz in Japan) at our new plant in France. In North America, we announced
a number of additional expansions throughout the year, including a new V8
engine plant.'
He concluded, 'We believe these strategies, along with a continued focus
on cost reduction and the maximization of the total power of the Toyota
Group, will serve us well as we strive to be a leading global company in
the 21st century.'
For the fiscal year ending March 31, 2002, TMC envisions
unconsolidated sales of 8.0 trillion yen, ordinary income of 630.0
billion yen and net income of 370.0 billion yen.
Based on an exchange rate of 115 yen to the dollar and 105 yen to the euro.
(Please see attached information for details on consolidated and
unconsolidated results.
Further information is also available on the Internet at
www.global.toyota.com)
Cautionary Statement with Respect to Forward-Looking Statements
This release contains forward-looking statements that reflect our plans and
expectations. These forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause our 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: (a) changes in
economic conditions affecting the automotive markets in Japan, North America,
Europe and other markets in which we operate; (b) fluctuations in currency
exchange rates, particularly with respect to the value of the Japanese yen, the
United States dollar and the euro; (c) our ability to realize production
efficiencies and to implement capital expenditures at the levels and times
planned by management; (d) changes in the laws, regulations and government
policies affecting our 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 our other operations, including our
telecommunications operations and the outcome of future litigation and other
legal proceedings; (e) political instability in the markets in which we operate;
(f) our ability to timely develop and achieve market acceptance of new products;
and (g) 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 we purchase materials, components
and supplies for the production of our products or where our products are
produced, distributed or sold. A discussion of these and other factors which
may affect our actual results, performance, achievements or financial position
is contained in the 'Management's Discussion and Analysis of Financial Condition
and Results of Operations' section and elsewhere in our annual report on Form
20-F, which is on file with the United States Securities and Exchange
Commission.
Contact: Public Affairs Division at (03)3817-9170-3/9178/9161/9150
Highlights of Consolidated Financial
Results for FY 2001
(April 2000 through March 2001)
(All financial information has been prepared in accordance with accounting
principles generally accepted in Japan)
(Billions of yen unless otherwise specified)
FY 2000 FY2001 FY2002 Forecast
(Apr. 1999 through (Apr. 2000 through (Apr. 2001
March 2000) March 2001) % of through
change Mar.2002
from
FY2000
Vehicle sale 518 552 6.6% 559
(ten thousand units)
Net sales 12,879.5 13,424.4 4.2%
Operating income 775.9 870.1 12.1%
<6.0%> <6.5%>
Ordinary income 797.0 972.2 22.0%
<6.2%> <7.2%>
Income before
income taxes 750.5 864.1 15.1%
and minority
interest in <5.8%> <6.4%>
consolidated subsidiaries
Net income 406.7 471.2 15.9%
<3.2%> <3.5%>
Factors contributing to 0perating income
increases and decreases in increased by
operating income 94.2 billion yen
(Increase)
Marketing efforts 210.0
Cost reduction efforts 190.0
(Decrease)
Effects of exchange
rate fluctuations - 170.0
Increase of labor and - 135.8
R&D expenses, etc.
Capital investment 871.3 860.8 790.0
(excluding leased
vehicles)
Depreciation expenses 689.4 672.5 690.0
R&D expenses 453.3 479.9 510.0
Performance evaluation Increases in sales and
ordinary income
(Net sales, operating income,)
(ordinary income, and net )
(income all reached historic )
(highs )
The number of
employees 210,709 215,648
Note1: Effective for FY2001, the 'Accounting Standards for Financial
Instruments' has been applied and the 'Other securities' is stated
at fair value. As a result, 'Ordinary income' and 'Income before
income taxes and minority interest in consolidated subsidiaries'
increased by 1.3 billion yen.
Note2: Effective for FY2001, the revised 'Accounting Standards for
Foreign Currency Transactions, etc.' has been applied. As a result,
'Ordinary income' and 'Income before income taxes and minority
interest in consolidated subsidiaries' decreased by 0.2 billion yen.
Note3: Effective for FY2001, the 'Accounting Standards for Retirement
Benefit' has been applied. As a result 'Ordinary income' and Income before
income taxes and minority interest in consolidated subsidiaries'
decreased by 19.6 billion yen and 127.7 billion yen, respectively.
Out of the transition obligation which was resulted from the
adoption of new standards, 319.2 billion yen which is the amount of
holding stocks that TMC and certain subsidiaries contributed to
retirement benefit trust is reported as 'Extraordinary losses'. 53.9
billion yen was amortized as 'Extraordinary losses' in FY2001. Gains
on disposal of securities to establish retirement benefit trust in the
amount of 265.0 billion yen are reported as 'Extraordinary gains'.
Cautionary Statement with Respect to Forward-Looking Statements
This report contains forward-looking statements that reflect our
plans and expectations. These forward-looking statements involve known
and unknown risks, uncertainties and other factors that may cause our
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 the automotive markets in Japan, North
America, Europe and other markets in which we operate; (ii)
fluctuations in currency exchange rates, particularly with respect to
the value of the Japanese yen, the United States dollar and the euro;
(iii) our 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 our automotive operations, particularly laws, regulations and
policies relating to the environmental protection, vehicle emissions,
vehicle fuel economy and vehicle safety, as well as changes in laws,
regulations and government policies affecting our other operations,
including our telecommunications operations and the outcome of future
litigation and other legal proceedings; (v) political instability in
the markets in which we operate; (vi) our ability to timely develop
and achieve market acceptance of new products; and (vii) fuel
shortages or interruptions in transportation systems, labor strikes,
wok stoppages or other interruptions to or difficulties in the
employment of labor in the major markets where we purchase materials,
components and supplies for the production of our products or where
our products are produced, distributed or sold. A discussion of these
and other factors which may affect our actual results, performance,
achievements or financial position is contained in the 'Managements
Discussion and: Analysis of Financial Condition and Results of
Operations' section and elsewhere in our annual report on Form 20-F,
which is on file with the United States Securities and Exchange
Commission.
Highlights of Unconsolidated Financial
Results for FY 2001
(April 2000 through March 2001)
(All financial information has been prepared in accordance with accounting
principles generally accepted in Japan)
(Billions of yen unless otherwise specified)
FY 2000 FY2001 FY2002 Forecast
(Apr.1999 (Apr.2000 %of change (Apr.200 %of change
through through from through
Mar. 2000) Mar. 2001) FY2000 Mar.2002) from FY2001
Domestic vehicle
production 3,212 3,422 6.5% 3,390 -0.9%
(Thousand units)
Overseas vehicle
production 1,669 1,751 4.9% 1,890 7.9%
(Thousand units)
Domestic vehicle sales 1,711 1,816 6.1% 1,890 4.0%
(Thousand units)
Exports 1,577 1,704 8.1% 1,580 -7.3%
(Thousand units)
Net sales 7,408.0 7,903.5 6.7% 8,000.0 1.2%
Domestic 3,453.2 3,767.2 9.1%
Export 3,954.7 4,136.3 4.6%
Operating income 491.9 506.8 3.0% 610.0 20.4%
<6.6%> <6.4%> <7.6%>
Ordinary income 541.8 621.7 14.8% 630.0 1.3%
<7.3%> <7.9%> <7.9%>
Income before income
taxes 541.8 562.1 3.7% 630.0 12.1%
<7.3%> <7.1%> <7.9%>
Net income 329.2 333.5 1.3% 370.0 10.9%
<4.4%> <4.2%> <4.6%>
Factors contributing to Operating income increased by 14.9
increases and decreases
in operating income billion yen
(Increase)
Cost reduction
efforts 150.0
Marketing efforts 90.0
(Decrease)
Effects of exchange rate
fluctuations -170.0
Increase of R&D
expenses, etc. -55.1
Exchange rates YEN111/US$ YEN110/US$ YEN115/US$
YEN115/Euro YEN100/Euro YEN105/EURO
capital investment 271.4 243.8 240.0
Depreciation expenses 277.0 263.9 260.0
R&D expenses 402.8 428.3 460.0
Interest-bearing debt 514.1 514.1
Performance evaluation Increases in sales and
ordinary income
The number of employees 65,290 66,005
Note1: Effective for FY2001, the 'Accounting Standards for Financial
instruments' has been applied and the 'Other securities' is stated
at fair value. As a result. 'Ordinary income' and 'Income before
income taxes' increased by 0.6 billion yen.
Note2: Effective for FY2001, the revised 'Accounting Standards for Foreign
Currency Transactions, etc.' has been applied. As result, 'Ordinary
income' and 'Income before income taxes' decreased by 0.5 billion yen.
Note3: Effective for FY2001, the 'Accounting Standards for Retirement
Benefits' has been applied. As a result 'Ordinary income' and income
before income taxes' decreased by 14.5 billion yen and 74.1 billion
yen respectively. Transition obligation of 255.0 billion yen was
resulted from the adoption of new standards. Out of this amount,
246.1 billion yen which is the amount of holding stocks that TMC
contributed to retirement benefit trust is reported as 'Extraordinary
losses'. 8.9 billion yen was amortized as 'Extraordinary losses' in
FY2001. Gains on disposal of securities to establish retirement
benefit trust in the amount of 195.4 billion yen arc reported as
'Extraordinary gains'.
Cautionary Statement with Respect to Forward-Looking Statements
This report contains forward-looking statements that reflect our
plans and expectations. These forward-looking statements involve known
and unknown risks, uncertainties and other factors that may cause our
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 the automotive markets in Japan, North America, Europe and
other markets in which we operate; (ii) fluctuations in currency
exchange rates, particularly with respect to the value of the
Japanese yen, the United States dollar and the euro; (iii) our ability
to realm 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 our automotive
operations, particularly laws, regulations and policies relating to
the environmental protection, vehicle emissions, vehicle fuel economy
and vehicle safety, as well as changes in laws, regulations and
government policies affecting our other operations, including our
telecommunications cations operations and the outcome of future
litigation and other legal proceedings; (v) political instability in the
markets in which we operate; (vi) our ability to timely develop and
achieve market acceptance of new products; and (vii) fuel shortages
or interruptions in transportation system, labor strikes, work stoppages
or other interruptions to or difficulties in the employment of labor
in the major markets where we purchase materials, components and
supplies for the production of our products or where or products are
produced, distributed or sold. A discussion of these and other factors
which may affect our actual results, performance, achievements or
financial position is contained in the 'Managements Discussion and
Analysis of Financial Condition and Results of Operations' section and
elsewhere in our annual report on Form 20-F, which is on file with the
United States Securities and Exchange Commission.
FY2001 Consolidated Financial Results
( April 1. 2000 through March 31, 2001)
(All financial information has been prepared in accordance with
accounting principles generally accepted in Japan)
English translation from the original Japanese-language document
Company name :Toyota Motor Corporation
Stock exchanges on which the shares are listed :Tokyo, Nagoya, Osaka, Fukuoka
and Sapporo Stock Exchange in
in Japan
Code number :7203
Location of the head office :Aichi Prefecture
Contact person :Takanori Matsuo, General
Manager Accounting Division
Tel. (0565)28-2121
Date of the meeting of the Board of Directors for :Wednesday, May 16 2001
FY2001 financial results
Whether or not to be prepared in accordance with : No
accounting principles generally accepted in the
United States
Results of FY2001 (April 1, 2000 through March 31, 2001)
Results of FY2001 (April 1, 2000 through March 31, 2001)
(1) Consolidated financial results
(Amounts less than one million yen are omitted.)
Net sales Operating income Ordinary income
Million yen % Million yen % Million yen %
FY2001 13,424,423 (4.2) 870,131 (12.1) 972,273 (22.0)
FY2000 12,879,561 (1.0) 775,982 (0.1) 797,058 (3.3)
Net income Net income Ratio of Ratio of
Net Income per share per share Return ordinary ordinary
-basic -diluted on income income
equity to total to net
assets sales
Million yen % Yen Yen % % %
FY2001 471,295 (15.9) 127.88 - 6.8 5.7 7.2
FY2000 406,798 (14.2) 109.95 - 6.3 5.1 6.2
Note 1: Equity In earnings of affiliates: FY2001 36,553 million yen.
FY2000 28,076 million yen
Note 2: Average number of shares issued and outstanding in each year
(consolidated): FY2001 3,685,399,160 shares, FY2000 3,699,624,748 shares
Note 3: Regarding net sales, operating income, ordinary income and net
income, the figures in parentheses show percentage of changes from
the previous year.
Note 4: Effective for FY2001, under the 'Accounting Standards for
Financial Instruments', the 'Other securities' is stated at fair value.
(2) Consolidated financial position
Ratio of Shareholders'
Total assets Shareholders' equity
equity shareholders' per share
equity
Million yen Million yen % Yen
FY2001 17,519,427 7,114,567 40.6 1,956.57
FY2000 16,469,054 6,796,666 41.3 1,841.53
Note: Number of shares Issued and outstanding at end of each year
(consolidated): FY2001 3,636,237,083 shares, FY2000 3,690,765,985
shares
(3) Consolidated cash flows
From operating From investing From financing Cash and cash
activities activities activities equivalents at end
year
Million yen Million yen Million yen Million yen
FY2001 1,108,831 (1,047,074) (148,930) 1,507,280
FY2000 547,533 (814,877) 525,441 1,559,732
(4) Scope of consolidation and equity method
Number of consolidated subsidiaries 445 companies
Number of unconsolidated subsidiaries 0
Number of affiliates 202 companies (including 51
affiliates accounted for under the
equity method)
(5) Changes in scope of consolidation and equity method
Consolidated subsidiaries
(increase) 34 companies Toyota Financial Services Corporation,
Toyota Sabanci Motor, Manufacturing
Turkey Inc., Toyota Motor
Poland Co., Ltd., etc..
(decrease) 14 companies IDO Corporation, Netz Toyota Shizuoka
Co., Ltd., etc.
Affiliates accounted for under the equity method
(increase) 4 companies Toyota Asset Management Co., Ltd.,
Toyota SA, Toyota Sabanci Marketing and
Sales Inc., etc.
(decrease) 2 companies Toyota Sabanci Motor Manufacturing
Turkey Inc, Toyota Motor
Poland Co., Ltd.
FY2001 Unconsolidated Financial Results
(April 1, 2000 through March 31, 2001)
(All financial information has been prepared in accordance with accounting
principles generally accepted in Japan)
English translation from the original Japanese-language document
May 16, 2001
Company name : Toyota Motor Corporation
Stock exchanges on which the : Tokyo, Nagoya, Osaka, Fukuoka and Sapporo
shares are listed Stock Exchanges in Japan
Code number : 7203
Location of the head office : Aichi Prefecture
Contact person : Takanori Matsuo, General Manager,
Accounting Division
Tel. (0565) 28-2121
Date of the meeting of the : Wednesday, May 16, 2001
Board of Directors for
FY2001 financial results
Provision for interim cash
dividends : Provision exists.
Date of the ordinary general : Wednesday, June 27, 2001
meeting of shareholders
1. Results of FY2001 (April 1, 2000 through March 31, 2001)
(1) Unconsolidated financial results
(Amounts less than one million yen are omitted.)
Net sales Operating income Ordinary income
Million yen % Million yen % Million yen %
FY2001 7,903,580 (6.7) 506,806 (3.0) 621,760 (14.8)
FY2000 7,408,010 (-1.6) 491,943 (-9.5) 541,824 (-6.3)
Net income Net income Net income Return Ratio of Ratio of
per share per share on ordinary ordinary
- basic - diluted equity income income
to to
total net
assets sales
Million Yen % Yen Yen % % %
FY2001 333,516 (1.3) 89.25 - 6.0 7.7 7.9
FY2000 329,368 (23.2) 87.61 - 6.3 7.2 7.3
Note 1: Average number of shares
issued and outstanding in each year FY2001 3,736,834,802 shares
FY2000 3,758,238,046 shares
Note 2: Regarding net sales, operating income, ordinary income and net income,
the figures in parentheses show percentage of changes from the previous year.
Note 3: Effective for FY2001, under the 'Accounting Standards for Financial
Instruments', 'Other securities' is stated at fair value.
(2) Cash dividends
Annual cash dividends Total amount Dividends Ratio of total
per share of annual payout amount of
cash ratio dividends
Interim Year-end dividends to
shareholder's
equity
Yen Yen Yen Million yen % %
FY2001 25.00 11.00 14.00 92,738 27.8 1.6
FY2000 24.00 11.00 13.00 90,087 27.4 1.6
(3) Unconsolidated financial position
Total assets Shareholders' Ratio of Shareholders'
equity Shareholders' equity
equity per share
Million yen Million yen % Yen
FY2001 8,293,450 5,666,247 68.3 1,537.65
FY2000 7,775,276 5,498,108 70.7 1,466.39
Note: Number of shares issued and outstanding FY2001 3,684,997,492 shares
at end of each year FY2000 3,749,405,129 shares
(par value shares, 1 unit=100 shares)
2. Unconsolidated estimate of results of FY2002 (April 1, 2001 through March 21,
2002)
Net sales Ordinary income Net income
Million yen Million yen Million yen
FY2002 interim (for six-month 3,900,000 310,000 180,000
period ended September 30,
2001)
FY2002 8,000,000 630,000 370,000
Cautionary Statement with Respect to Forward-Looking Statements
This report contains forward-looking statements that reflect our plans and
expectations. These forward-looking statements involve and unknown risks,
uncertainties and other factors that may cause our 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 the automotive markets in Japan, North America,
Europe and other markets in which we operate; (ii) fluctuations in currency
exchange rates, particularly with respect to the value of the Japanese yen, the
United States dollar and the euro; (ii) our 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 our automotive operations, particularly laws, regulations and
policies relating to the environmental protection, vehicle emissions, vehicle
fuel economy and vehicle safety, as well as changes in laws, regulations and
government policies affecting our other operations, including our
telecommunications operations and the outcome of future litigation and other
legal proceedings; (v) political instability in the markets in which we operate;
(vi) our 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 labour in the major markets where we purchase materials,
components and supplies for the production of our products or where our products
are produced, distributed or sold. A discussion of these and other factors
which may affect our actual results, performance, achievements or financial
position is contained in the 'Management's Discussion and Analysis of Financial
Condition and Results of Operations' section and elsewhere in our annual report
on Form 20-F, which is on file with the United States Securities and Exchange
Commission.
Changes in Members of the Board of Directors
Current titles are indicated in parentheses
New Candidates for the Board of Directors
Katsuhiro Nakagawa (Executive Adviser, The Tokio Marine and Fire Insurance
Co., Ltd.)
Hajime Wakayama (Executive Vice President, Toyota Motor Europe Manufacturing)
Hiroshi Takada (General Manager, Domestic Advertising/Marketing Div.)
Teiji Tachibana (General Manager, Metropolitan Area Marketing Div.)
Shinichi Sasaki (General Manager, Administration Div., Tsutsumi Plant)
Kazutoshi Minami (General Manager, Planning Div. 2, Vehicle Development
Center 2)
Shin Kanada (General Manager, Public Affairs Div.)
Hironobu Ono (General Manager, Electronics Engineering Div. II,
Component & System Development Center)
Akira Okabe (General Manager, Sales & Marketing Div.,
Oceania, Middle East & Southwest Asia Operations Center)
Yoshio Shirai (General Manager, Body Engineering Div. 2, Vehicle
Development Center 2)
Yoichiro Ichimaru (General Manager, Corolla channel Operations Div.,
Corolla channel Operations Center)
Shoji Ikawa (General Manager, Production Engineering Planning Div.)
Retiring Members from the Board of Directors
Kosuke Yamamoto (Executive Vice President, Member of the Board)
Shinichi Kato (Executive Vice President, Member of the Board)
Tadaaki Jagawa (Executive Vice President, Member of the Board)
Hiroaki Kazaoka (Managing Director, Member of the Board)
Masanao Motonami (Managing Director, Member of the Board)
Koichiro Noguchi (Director, Member of the Board)
Seihachi Takahashi (Director, Member of the Board)
Norio Sato (Director, Member of the Board)
Akio Kamiya (Director, Member of the Board)
Shinro Iwatsuki (Director, Member of the Board)
New candidate for the Board of Corporate Auditors
Yoshiaki Muramatsu (Project General Manager, Asia Div., Asia & China
Operations Center)
Retiring Member from the Board of Corporate Auditors
Hiroyuki Ioku (Corporate Auditor)
Planned Changes in the Titles of the Members of the Board of Directors
Vice Chairman of the Board
Kosuke Ikebuchi (Executive Vice President, Member of the Board)
Executive Vice Presidents, Members of the Board
Yoshio Uesaka (Senior Manager Director, Member of the Board)
Akihiko Saito (Senior Managing Director, Member of the Board)
Ryuji Araki (Senior Managing Director, Member of the Board)
Yoshio Ishizaka (Senior Managing Director, Member of the Board)
Kosuke Shiramizu (Senior Managing Director, Member of the Board)
Katsuaki Watanabe (Senior Managing Director, Member of the Board)
Susumu Miyoshi (Senior Managing Director, Member of the Board)
Kazuski Iwatsuki (Senior Managing Director, Member of the Board)
Senior Managing Directors, Members of the Board
Koji Hasegawa (Managing Director, Member of the Board)
Yasuhito Yamauchi (Managing Director, Member of the Board)
Zenji Yasuda (Managing Director, Member of the Board)
Takashi Kamio (Managing Director, Member of the Board)
Hiroyuki Watanabe (Managing Director, Member of the Board)
Managing Directors, Members of the Board
Katsuhiro Nakagawa (Shown above)
Akio Matsubara (Director, Member of the Board)
Tokuichi Uranishi (Director, Member of the Board)
Akiyoshi Watanabe (Director, Member of the Board)
Tsutomu Tomita (Director, Member of the Board)
Yoshito Kato (Director, Member of the Board)
Kazuo Okamoto (Director, Member of the Board)
Shoji Kondo (Director, Member of the Board)
Kyoji Sasazu (Director, Member of the Board)
Mitsuo Kinoshita (Director, Member of the Board)
Toshio Mizushima (Director, Member of the Board)
Yasuhiko Fukatsu (Director, Member of the Board)
Takeshi Uchiyamada (Director, Member of the Board)
Shuhei Toyoda (Director, Memberr of the Board)
This cautionary Statement with Respect to Forward-Looking Statements
This report contains forward-looking statements that reflect our plans and
expectations. These forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause our 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 the automotive markets in Japan, North America, Europe and
other markets in which we operate; (ii) Fluctuations in currency exchange rates,
particularly with respect to the value of the Japanese yen, the United States
dollar and the euro; (iii) our 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 our
automotive operations, particularly laws, regulations and policies relating to
the environmental protection, vehicle emissions, vehicle fuel economy and
vehicle safety, as well as changes in laws, regulations and government policies
affecting our other operations. including our telecommunications operations and
the outcome of future litigation and other legal proceedings; (v) political
instability in the markets in which we operate. (vi) our 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 we purchase materials, components and supplies for the production
of our products or where our products are produced, distributed or sold.
A discussion of these and other factors which may affect our actual results,
performance, achievements or financial position is contained in the 'Managements
Discussion and Analysis of Financial Condition. and Results of Operations'
section and elsewhere in our annual report on Form 20-F. which is on file with
the United states Securities and Exchange Commission.
OVERVIEW OF ASSOCIATED COMPANIES
( All financial information has been prepared in accordance with accounting
principles generally accepted in Japan)
Toyota Motor Corporation (TMC) and its associated companies (445 subsidiaries
and 202 affiliates as of March 31, 2001) are engaged mainly in the automotive
industry and also in the financial services and other business.
The following three business segments are the same divisions as stated in the
'Segment Information' according to the business category.
Automotive:
This business involves the design, manufacturing and sale of passenger cars,
recreational vehicles, sport utility vehicles, minivans, trucks and related
parts. Automobiles are manufactured mainly by TMC and Daihatsu Motor Co., Ltd.,
but a portion of manufacturing, Kentucky, Inc. and other companies overseas.
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 some sales to certain large customers are made directly by TMC in Japan.
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 loans and leases to customers and the
provision of loans to dealers. Toyota Finance Corporation in Japan and Toyota
Motor Credit Corporation and others overseas provide sales financing for TMC's
products and the products of its affiliates.
All other:
Other business includes manufacturing and sale of industrial vehicles such as
forklifts and logistics system, the design, manufacturing and sale of housing,
telecommunications and other business. Industrial vehicles are manufactured by
Toyoda Automatic Loom Works, Ltd. and sold through dealers in Japan and
distributors and dealers overseas. Housing is manufactured by TMC and sold
through domestic housing dealers. In addition, Toyota Tsusho Corporation engages
in the purchase and sale as well as import and export of various products.
Regarding telecommunications business, IDO Corporation, which provide domestic
telephone services, merged with DDI Corporation and KDD Corporation on October
1, 2000 to become DDI Corporation (currently KDDI Corporation). The new company
has been excluded from the scope of associated companies since October 1, 2000.
The industrial vehicles and logistics system business was transferred to Toyoda
Automatic Loom Works, Ltd on April 1, 2001.
Overview of Changes in Major Associated Companies
For FY2001, the changes In our major associated companies are as described
below.
(Changes in major associated companies)
New companies were established as follows:
Toyota Financial Services Corporation
Toyota Financial Services Americas Corporation
In July 2000, TMC established a subsidiary, Toyota Financial Services
Corporation (TFS) to oversee the management of financial companies engaged
mainly in providing sales financial services. The objectives for TFS are to
streamline the decision-making process and enhance the planning and risk
management functions, by integrating management operations, and to strengthen
competitiveness and profitability of its financial business by increasing
management specialization.
Financial subsidiaries under TFS include Toyota Finance Corporation, Toyota
Motor Credit Corporation and Toyota Financial Services Americas Corporation
(established in August.2000).
Exclusion from consolidation: IDO Corporation
IDO Corporation merged with DDI Corporation and KDD Corporation on October 1,
2000 to become DDI Corporation (currently KDDI Corporation). The company has
been excluded from the scope of associated companies since October 1. 2000.
0verview of Associated Companies
Percentage
Company name Location Capital stock Business of voting
or capital segment rights owned
fund (%)
(Consolidated
subsidiaries)
Tokyo Toyota Minato-ku (million yen)
Motor Co., Ltd. Tokyo 7,537 Automotive 100.00
Tokyo Toyo-Pet Minato-ku (million yen)
Motor Sales Co., Tokyo 7,822 Automotive 100.00
Osaka Toyopet Co.,
Ltd. Fukushima-ku, (Million yen) Automotive 100.00
Osaka 3,025
Toyota Tokyo Meguro-ku (million yen) Automotive 100.00
Corolla Co Ltd Tokyo 7,179
Toyota Motor Miyata-cho (million yen) Automotive 100.00
Kyushu, Inc Kurate-gun 45,000
Fukuoka
Daihatsu Motor Ikeda, Osaka (million yen) Automotive 51.22
Co., Ltd 28,404 (0.03)
Toyota Motor Tomakomai, (million yen) Automotive 100.00
Hokkaido,Inc Hokkaido 27,500
Toyota Auto Kariya, (million yen) Automotive 47.75
Body Co.,Ltd Aichi 8,871 (0.65)
(8.55)
Kanto Auto Yokosuka, (million yen) Automotive 49.83
Works Ltd Kanagawa 6,850 (0.88)
(1.74)
Toyoda Boshoku Kariya, (million yen) Automotive 42.89
Corporation Aichi 4,933 (27.33)
(16.73)
Araco Corp Toyota,Aichi (million yen) Automotive 81.35
3,188 (6.31)
Toyota Fin. Naka-ku (million yen) Financial Services 100.00
Serv. Corp Nagoya 61,525
Toyota Finance Koto-Ku, (million yen) Financial Services 100.00
Corporation Tokyo 3,000 (100.00)
Towa Real Nakamura ku (million yen) All other 55.00
Estate Co.,Ltd Nagoya 23,750 (6.00)
(45.00)
Toyota Central Nagakute-cho (million yen) All other 63.00
Research and Aichi-gun 3,000 (9.00)
Dev. Labs.Inc Aichi
Toyota Motor Torrance, Calif (Thousand US$) Automotive 100.00
North America U.S.A. 933,600
Toyota Motor Torrance, Calif (Thousand US$) Automotive 100.00
Sales, USA.Inc U.S.A. 365,000 (100.00)
Toyota Motor Eriangar, (thousand US$) Automotive 100.00
Manufacturing Kentucky 1,958,949 (100.00)
N. America Inc U.S.A.
Toyota Motor Georgetown (thousand US$) Automotive 100.00
Manufacturing Kentucky 1,180,000 (100.00)
Kentucky Inc U.S.A.
Toyota Motor Princetown (thousand US$) Automotive 100.00
Manufacturing Indiana 620,000 (100.00)
Indiana Inc. U.S.A.
Toyota Motor Charleston, (thousand US$) Automotive 100.00
Manufacturing West Virginia 260,000 (100.00)
West Virginia U.S.A.
Inc.
TABC Holding Inc Long Beach (thousand US$) Automotive 100.00
California 185,600 (100.00)
U.S.A.
Bodine Aluminum St. Louis (thousand US$) Automotive 100.00
Inc. Missouri, USA 131,004 (100.00)
Toyota Fin. Ser.Torrance, (thousand US$) Financial Services 100.00
Americas Corp Calif. USA 418,400 (100.00)
Toyota Motor Torrance (thousand US$) Financial Services 100.000
Credit Corpn Calif. USA 915,000 (100.00)
Toyota Motor Cambridge, (thousand Can) Automotive 100.00
Manuf. Canada Inc Ontario, 680,000
Canada
Toyota do Brasil Sao Paulo (thousand real) Automotive 99.99
LTDA Brazil 193,911
N.V. Toyota Bruxelles (thousand euro) Automotive 100.00
Motor Europe Belgium 102,382
Marketing
& Engineering
S.A.
Toyota Motor Bruxelles (thousand euro) Automotive 100.00
Europe Belgium 949,878
Manufacturing
Toyota Motor Onnaing, (thousand euro) Automotive 100.00
Manufacturing France 259,080 (100.00)
France S.A.S
Toyota Koln (thousand DM) Automotive 100.00
Deutschland Germany 11,200
G.m.b.H
Toyota (GB) PLC Redhill, (thousand STG£) Automotive 100.00
Surrey, UK 2,600
Toyota Motor Burnaston, (thousand STG£) Automotive 100.00
Manufac. (UK) Ltd Derbyshire, U.K 650,000 (100.00)
Toyota Motor Samut (thousand baht) Automotive 86.43
Thailand Co.Ltd Prakan, 7,520,000
Thailand
Toyota Motor Port Melbourne (thousandA$) Automotive 100.00
Corp.Australia Victoria 481,100
Ltd
Toyota Finance Milsons Point (thousand A$) Financial Services 100.00
Australia Ltd New South Wales 120,000 (100.00)
Australia
Toyota Kirloskar Bangalore, (thousand rupee) Automotive 88.86
Motor Ltd Karnataka, India 7,000,000
Toyota Sabanci Adapazari (million Turkish lira) Automotive 65.00
Motor Manufac. Turkey 5,400,000
Turkey Inc
Other 407 companies
(Affiliates accounted for under the equity method
Denso Corp Kariya, Aichi (million yen) Automotive 25.15
173,097 (0.20)
Toyoda Automatic Kariya, Aichi (million yen) Automotive 27.40
Loom Works Ltd 68,018 (2.73)
Aisin Seiki Co Ltd Kariya, Aichi (million yen) Automotive 26.84
41,140 (2.30)
Hino Motors Ltd Hino, Tokyo (million yen) Automotive 36.75
39,573 (0.14)
Aisin AW Co Ltd Anjo, Aichi (million yen) Automotive 41.16
26,480
Toyoda Gosei Co Haruhi-cho Nishikasugai (million yen) Automotive 42.40
Ltd -gun Aichi 25,134 (0.61)
Aichi Steel Corp Tokai, Aichi (million yen) Automotive 27.51
25,016 (2.80)
Toyoda Machine Kariya, Aichi (million yen) Automotive 25.58
Works Ltd 24,805 (0.60)
The Chiyoda Fire Shibuya-ku Tokyo (million yen) Financial Services 49.91
& Marine Ins. 42,664 (0.03)
Co. Ltd
Toyota Tsusho Nakamura-ku (million yen) All other 24.41
Corporation Nagoya 26,748 (1.44)
New United Motor Fremont, California (thousand US$) Automotive 50.000
Manufacturing Inc. USA 310,000
Other 40 companies
Note 1: Business segment describes the names of segments classified according to
the business category.
Note 2: In the column for 'Percentage of voting rights owned', figures in
parentheses indicate the percentage of voting rights owned indirectly and they
are part of the figure shown at the top of each row. Figures in square brackets
are shown to the companies which are categorized into subsidiaries because they
are effectively controlled by TMC and/or its consolidated subsidiaries. These
figures indicate the percentage of voting rights owned by persons that have
close relationships with TMC and/or its consolidated subsidiaries, and they are
not part of the figure shown at the top of each row.
Note 3: TABC. Inc. changed its name into TABC Holding, Inc. as of June 1. 2000.
Note 4: Hino Motors, Ltd. plans to issue new shares by allocating all new shares
to TMC in August 2001, subject to the completion of the administrative
procedures in and outside of Japan, such as filing with and approval by the
antitrust authorities. As a result, Hino Motors, Ltd. will become a subsidiary
of TMC from a affiliate accounted for under the equity method.
Note 5. The Chiyoda Fire and Marine Insurance Co., Ltd. merged with The
Dai-Tokyo Fire and Marine Insurance Co. Ltd. to become Aioi Insurance Co., Ltd.
as of April 1, 2001.
Note 6. Consolidated subsidiaries listed on Stock Exchanges
Company name Stock Exchanges on which the shares are listed
Daihatsu Motor Co., Ltd. Tokyo, Nagoya, 0saka, Fukuoka and Sapporo
Toyota Auto Body Co., Ltd. Tokyo and Nagoya
Kanto Auto Works, Ltd. Tokyo and Nagoya
Toyoda Boshoku Corporation Tokyo and Nagoya
Taiho Kogyo Co., Ltd. Tokyo and Nagoya
MANAGEMENT POLICY
(All financial information has been prepared in accordance with accounting
principles generally accepted in Japan)
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 shareholders'
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 positions the benefit of its shareholders as one of its priority management
Policies and promotes its business aggressively while improving and
strengthening its corporate foundations. The corporation's basic approach is to
continue paying stable dividends, while giving overall consideration to business
results and dividends payout ratio etc., with the intent of responding to the
expectations of our shareholders.
Reserves will be utilized for making our products more competitive, improving
domestic and overseas production and sales structures, and developing new
businesses to establish a stable, longterm management foundation, as well as
repurchasing and retiring its shares in order to return profits to our
shareholders.
3. TMC's medium and long-term management strategy
TMC will promote further growth in the automobile business by utilizing the
capabilities of the entire group to the greatest extent possible. TMC will seek
to become a leading company of the world of the 21st century. To that end, TMC
will first implement sales strategies in Japan, North America, Europe, and Asia
that match the unique characteristics of each region from a perspective of
globalization and will establish the optimal production, procurement, and supply
systems that organically link each of these regions. Secondly, it will promote
the utilization of information technology (IT). TMC will conduct vigorous
research and development of cutting-edge information technologies to realize
automobile multimedia systems and will promote the further utilization of
information in every area including development, procurement, production and
sales. Lastly, TMC will take steps to deal with environmental issues.
Environmental regulation of automobiles is becoming increasingly strict in
countries around the world. Under these circumstances, TMC plans to take a
leading role in developing environmental technologies indispensable for the 21st
century, including development of various types of hybrid systems and research
in fuel cell vehicles to reduce exhaust emissions and to improve fuel
efficiency, independently or, if feasible, through global alliances with other
companies.
In order to address various customer needs for automobiles expanding to
automobile related areas, TMC is strategically enhancing business operations in
areas such as information technology and financial services.
Through these efforts, TMC will put in place more efficient management and
establish a stable management foundation for the long-term in order to improve
profitability and to increase shareholder value.
4. Measures for improvement of corporate management organizations
In addition to general meetings of shareholders, meetings of the Board of
Directors, meetings of the Board of Corporate Auditors and auditing of financial
statements by certified public accountants and other actions required by law,
TMC is taking various measures to ensure a higher level of corporate governance.
Specifically, the company established a 'Committee of Ethics for Corporate
Conduct'., comprise of executives of the senior managing director level and
higher, to verify all corporate activities from the viewpoint of legal
requirements and corporate ethics. TMC also adopted guidelines regarding the
conduct of employees to codify the basic attitudinal approach expected of
employees. Efforts are being made to ensure employees strictly follow these
guidelines. In addition, every year TMC holds at least one meeting of the
International Advisory Board, which is comprised of knowledgeable persons from
foreign countries, to provide TMC with advice concerning management strategies
in reference to Toyota's globalization initiatives.
Also, TMC continues to disclose information on the fiscal condition of the
company to shareholders, investors, and other stakeholders. The company will
continue to ensure a high level of corporate accountability.
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