Interim Results - 3
Toyota Motor Corporation
30 October 2002
FINANCIAL SUMMARY
( All financial information has been prepared in accordance with accounting
principles generally accepted in Japan)
FY2003 Semi-Annual
(Six months ended September 30, 2002)
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 affecting, and the competitive environment in, the automotive markets
in Japan, North America, Europe and other markets in which Toyota operates; (ii)
fluctuations in currency exchange rates, particularly with respect to the value
of the Japanese yen, the U.S. dollar, the euro and the British pound; (iii)
Toyota's ability to realize production efficiencies and to implement capital
expenditures at the levels and times planned by management; (iv) changes in the
laws, regulations and government policies affecting Toyota's automotive
operations, particularly laws, regulations and policies relating to
environmental protection, vehicle emissions, vehicle fuel economy and vehicle
safety, as well as changes in laws, regulations and government policies
affecting Toyota's other operations, including the outcome of future litigation
and other legal proceedings; (v) political instability in the markets in which
Toyota operates; (vi) Toyota's ability to timely develop and achieve market
acceptance of new products; and (vii) fuel shortages or interruptions in
transportation systems, labor strikes, work stoppages or other interruptions to,
or difficulties in, the employment of labor in the major markets where Toyota
purchases materials, components and supplies for the production of its products
or where its products are produced, distributed or sold. A discussion of these
and other factors which may affect Toyota's actual results, performance,
achievements or financial position is contained in the 'Operating and Financial
Review and Prospects' and 'Information on the Company' sections and elsewhere in
Toyota's annual report on Form 20-F, which is on file with the United States
Securities and Exchange Commission.
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 (579 subsidiaries
and 234 affiliates as of September 30, 2002) 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, buses and
related parts. 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 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 subsidiaries and affiliates.
All other:
Other business includes the design, manufacturing and sale of housing,
telecommunications and other business. 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.
*:Consolidated subsidiaries, **:Companies accounted for under the equity method
Flow of services
Flow of products
Toyota Motor Corporation
*Hino Motors, Ltd.
*Daihatsu Motor Co., Ltd.
Manufacturing companies in Japan
*Toyota Motor Kyushu, Inc. *Toyota Motor Hokkaido, Inc. *Toyota Auto Body
Co., Ltd. *Kanto Auto Works, Ltd.
*Toyoda Boshoku Corporation *Araco Corporation
**Toyota Industries Corporation **Aichi Steel Corporation
**Toyoda Machine Works, Ltd.
**Aisin Seiki Co., Ltd. **Denso Corporation
**Toyoda Gosei Co., Ltd. **Aisin AW Co., Ltd. etc.
Manufacturing companies overseas
*Toyota Motor Manufacturing, Kentucky, Inc.
*Toyota Motor Manufacturing, Indiana, Inc.
*Toyota Motor Manufacturing Canada Inc.
*Toyota Motor Manufacturing (UK) Ltd.
*Toyota Motor Thailand Co., Limited
*Toyota Motor Corporation Australia Ltd.
*Hino Motors (Thailand) Ltd.
** New United Motor Manufacturing, Inc. etc.
Dealers in Japan
Distributors overseas
*Tokyo Toyota Motor Co., Ltd.
*Tokyo Toyo-Pet Motor Sales Co., Ltd.
*Osaka Toyopet Co., Ltd. *Toyota Tokyo Corolla Co., Ltd.
*Tokyo Hino Motors, Ltd.
*Hyogo Daihatsu Hanbai Co., Ltd. etc.
*Toyota Motor Sales, U.S.A., Inc.
*Toyota Motor Marketing Europe n.v./s.a.
*Toyota Deutschland G.m.b.H.
*Toyota (GB) PLC
*Daihatsu Deutschland GmbH. etc.
Financial companies
* Toyota Finance Corporation
* Toyota Motor Credit Corporation etc.
Customers
Dealers overseas
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 n.v./s.v., which deals with public relations
activities in Europe, Toyota Motor Engineering & Manufacturing Europe n.v./s.a.,
which controls manufacturing companies in Europe, and Toyota Financial Services
Corporation, which oversees the management of financial companies.
Note1: Toyota Motor Europe Marketing & Engineering n.v./s.a. was renamed to
Toyota Motor Marketing Europe n.v./s.a. on July 1, 2002.
Note2: Toyota Motor Europe Manufacturing n.v./s.a. was renamed to Toyota Motor
Engineering & Manufacturing Europe n.v./s.a. on July 1, 2002.
For this semi-annual period, the change in our major associated companies is as
follows:
(Change in major associated companies)
Newly established:
Toyota Motor Europe n.v./s.a.
TMC established a Europe-based holding company, Toyota Motor Europe n.v./s.a.
(TME), in April 2002, with the objective of enhancing efficiency and
accelerating decision-making in Toyota's European operations as well as
strengthening corporate public relations activities in Europe.
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 increased shareholder 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. TMC's basic approach is to
continue paying stable dividends, while giving overall consideration to
business results and dividends payout ratio etc. Further, with the intent
of responding to the expectations of its shareholders, TMC will implement a
number of measures, including retiring shares in order to return profits to
its shareholders.
Reserves will be utilized to establish a stable, long-term management
foundation for making its products more competitive, improving domestic and
overseas production and sales structures, and developing new businesses.
3. TMC's medium and long-term management strategy
TMC will seek to become a leading company of the world in the 21st century
by utilizing the capabilities of the entire group to the greatest extent
possible. First, TMC will 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, with regard to 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. TMC plans to play a
leading role in developing environmental technologies indispensable for the
21st century, including further promotion of its highly regarded hybrid
systems, and an early launch of fuel cell vehicles independently or, if
feasible, through global alliances with other companies.
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, independent
accountants and other actions required by law, TMC is taking various
measures to ensure a higher level of corporate governance.
Specifically, TMC established a 'Committee of Ethics for Corporate
Conduct', comprised of executives of the executive vice president level and
higher, to evaluate 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 a meeting of the
International Advisory Board, which is comprised of knowledgeable persons
from foreign countries, to provide TMC with advice concerning management
strategies in connection with Toyota's globalization initiatives.
Also, TMC continues to provide information on the company to shareholders,
investors, and other stakeholders. TMC will continue to ensure a high
level of corporate accountability.
5. Policy for the granting of stock options and other incentive plans
Since 1997, TMC has implemented the incentive plan by granting stock
options to the directors of TMC under the Commercial Code. Since 2001,
TMC has expanded the scope of eligible stock option recipients to newly
include the senior managers in addition to the directors. Together with
this change, TMC has also decided to introduce a new incentive plan for
the executives of its overseas subsidiaries and affiliated companies.
TMC believes that these incentive plans will further heighten their
willingness and motivation to improve business performance in the medium
and long-term, enhance international competitiveness and profitability, and
contribute to increased shareholder value.
BUSINESS RESULTS AND FINANCIAL POSITION
(All financial information has been prepared in accordance with accounting
principles generally accepted in Japan)
1. Summary of Consolidated Financial Results of FY2003 Semi-Annual
(1) Financial Results
During FY2003 semi-annual, although the Japanese economy continued to experience
severe employment conditions and consumer spending remained sluggish, there were
some signs that a recovery was underway including indications that capital
investments by the private sector had bottomed out and an increase in production
resulting from increased exports. And in overseas, the slowdown in Europe was
easing and Asian economies were on the path to recovery, but concerns about the
future of the American economy were rising.
Under these conditions, due to the effects of prolonged market stagnation,
domestic vehicle sales decreased by 53 thousand units, or 4.9%, to 1,024
thousand units in FY2003 semi-annual compared with FY2002 semi-annual, but
Toyota's market share (excluding minivehicles) increased by 0.1% to 42.1% in
FY2003 semi-annual compared with FY2002 semi-annual, as a result of the active
introduction of new products that met customer needs and the strong sales
efforts made by dealers in Japan. Including minivehicles, the market share was
37.6% in FY2003 semi-annual . Meanwhile, overseas vehicle sales increased by
379 thousand units, or 23.5%, to 1,994 thousand units in FY2003 semi-annual
compared with FY2002 semi-annual, mainly due to continued strong sales in North
America as well as the recovery of Asian economies. As a result, total vehicle
sales in Japan and overseas increased by 326 thousand units, or 12.1%, to 3,018
thousand units in FY2003 semi-annual compared with FY2002 semi-annual.
Net sales increased by 1,053.1 billion yen, or 15.4%, to 7,886.6 billion yen in
FY2003 semi-annual compared with FY2002 semi-annual, and operating income
increased by 224.3 billion yen, or 44.3%, to 730.8 billion yen in FY2003
semi-annual compared with FY2002 semi-annual. Among the factors contributing to
the increase in operating income, cost reduction efforts accounted for 150.0
billion yen, the effect of exchange rate fluctuations accounted for 90.0 billion
yen and the marketing efforts accounted for 80.0 billion yen, for a total of
320.0 billion yen. On the other hand, the factors contributing to the decrease
in operating income of 95.7 billion yen included increases in R&D expenses and
labor costs. Ordinary income increased by 267.4 billion yen, or 50.8%, to 794.0
billion yen in FY2003 semi-annual compared with FY2002 semi-annual. Net income
increased by 262.6 billion yen, or 90.2%, to 553.7 billion yen in FY2003
semi-annual compared with FY2002 semi-annual.
In conjunction with enforcement of the Defined Benefit Enterprise Pension Plan
Law, TMC and some of its domestic consolidated subsidiaries and domestic
affiliates accounted for under the equity method received approval from the
Minister of Health, Labor and Welfare, for exemption from payment of future
benefit regarding the substituted portion of the employee pension fund.
TMC and these subsidiaries and affiliates applied the transitional accounting
treatment specified in paragraph 47-2 of the 'Practical Guidelines of Accounting
for Retirement Benefits (Interim Report)', and recognized an extinguishment of
retirement benefit obligation with respect to such substituted portion as of the
date of the approval.
As a result, TMC has recorded a 216.3 billion yen impact on profit during FY2003
semi-annual. TMC has accounted for 30.3 billion yen (representing TMC's portion
of the impact recorded by these affiliates ) as 'Equity in earnings of
affiliates' in non-operating income and 186.0 billion yen (the impact recorded
by TMC and these subsidiaries ) as 'Gains on return of substituted portion of
employee pension fund' in extraordinary gains.
(2) Cash Flows
Cash flows from operating activities resulted in increase in cash by 532.0
billion yen in FY2003 semi-annual, mainly due to 980.0 billion yen of income
before income taxes and minority interest in consolidated subsidiaries. Net
cash provided by operating activities increased by 78.7 billion yen from 453.3
billion yen in FY2002 semi-annual. Cash flows from investing activities
resulted in decrease in cash by 522.9 billion yen, principally attributable to
533.7 billion yen of payments for acquisition of property, plant, and equipment.
Net Cash used in investing activities decreased by 210.3 billion yen from
312.6 billion yen in FY 2002 semi-annual. Net cash provided by financing
activities increased by 9.6 billion yen to 237.1 billion yen compared with
FY2002 semi-annual, mainly because of 840.9 billion yen of proceeds from
issuance of bonds. In addition, considering the effect of exchange rate
changes, cash and cash equivalents increased by 205.2 billion yen, or 12.2%, to
1,893.3 billion yen at the end of FY2003 semi-annual compared with the end of
FY2002.
Regarding the consolidated cash flows by segment for FY2003 semi-annual, in
non-financial services business, net cash provided by operating activities was
1,077.3 billion yen, net cash used in investing activities was 466.2 billion yen
and net cash used in financing activities was 301.6 billion yen. Meanwhile, in
the financial services business, net cash used in operating activities was 545.3
billion yen, net cash used in investing activities was 94.5 billion yen and net
cash provided by financing activities was 576.6 billion yen.
2. Consolidated financial results of FY2003 semi-annual by segment
(1) Business Segment
Automotive:
Net sales of the automotive segment increased by 999.2 billion yen, or 15.9%, to
7,282.3 billion yen in FY2003 semi-annual compared with FY2002 semi-annual, and
operating income increased by 242.3 billion yen, or 49.2%, to 734.2 billion yen
in FY2003 semi-annual compared with FY2002 semi-annual. The increase in
operating income was mainly due to increases in vehicle units sold in North
America and Asia as well as cost reduction efforts made by TMC and its
subsidiaries, partially offset by increases in R&D expenses, labor costs and
other expenses.
Financial services:
Net sales of the financial services segment increased by 34.6 billion yen, or
11.0%, to 350.1 billion yen in FY2003 semi-annual compared with FY2002
semi-annual, and operating income decreased by 17.2 billion yen, or 86.8%, to
2.6 billion yen in FY2003 semi-annual compared with FY2002 semi-annual. The
decrease in operating income was mainly due to the decrease in fair value of
interest rate swaps as a result of a decline in interest rates in the United
States, recorded as valuation losses by sales financing subsidiaries in the
United States in accordance with the Statement of Financial Accounting Standards
No.133 and No.138, despite solid performance in North America including an
increase in profit from higher financing margin. The valuation losses on
interest rate swaps increased by 35.1 billion yen, to 41.6 billion yen in FY2003
semi-annual compared with FY2002 semi-annual.
All other:
In FY2003 semi-annual, net sales of all other operations increased by 8.7
billion yen, or 2.2%, to 397.0 billion yen compared with FY2002 semi-annual, and
operating income was 2.5 billion yen, almost the same as for FY2002 semi-annual.
(2) Geographical Segment
Japan:
Net sales in Japan increased by 467.1 billion yen, or 9.5%, to 5,388.6 billion
yen in FY2003 semi-annual compared with FY2002 semi-annual, and operating income
increased by 123.4 billion yen, or 29.9%, to 535.8 billion yen in FY2003
semi-annual compared with FY2002 semi-annual. The increase in operating income
was mainly due to cost reduction efforts made by TMC and its subsidiaries as
well as increased vehicle units exported, partially offset by increases in R&D
expenses and other expenses.
North America:
Net sales in North America increased by 495.1 billion yen, or 18.2%, to 3,218.8
billion yen in FY2003 semi-annual compared with FY2002 semi-annual, and
operating income increased by 74.2 billion yen, or 70.7%, to 179.1 billion yen
in FY2003 semi-annual compared with FY2002 semi-annual. The increase in
operating income was primarily attributable to local cost reduction efforts in
addition to increases in both local production volume and vehicle units sold.
Europe:
Net sales in Europe increased by 129.6 billion yen, or 21.0%, to 746.2 billion
yen in FY2003 semi-annual compared with FY2002 semi-annual, and operating income
increased by 10.6 billion yen to 5.4 billion yen in FY2003 semi-annual compared
with FY2002 semi-annual. The increase in operating income was mainly due to
increases in local production volume in France and the United Kingdom as well as
increases in vehicle units sold.
Other:
Net sales in other regions increased by 315.0 billion yen, or 61.9%, to 823.9
billion yen in FY2003 semi-annual compared with FY2002 semi-annual, and
operating income increased by 21.0 billion yen, or 595.6%, to 24.5 billion yen
in FY2003 semi-annual compared with FY2002 semi-annual. The increase in
operating income was primarily due to increases in both local production volume
and vehicle units sold mainly in Asia.
3. Distribution of Profits for FY2003 Semi-Annual
The FY2003 interim dividend increased by 3 yen to 16 yen per share compared with
the FY2002 interim dividend. Accordingly, the dividend payout ratio for FY2003
semi-annual is 14.9%.
In addition, TMC retired 40 million shares in the amount of 142,992 million yen
in order to return profits to its shareholders.
4. Others
(1) Litigation in the United States
On July 12, 1999, the U.S. Department of Justice, acting on behalf of the U.S.
Environmental Protection Agency, filed a lawsuit against Toyota Motor Sales
U.S.A., Inc., a consolidated subsidiary of TMC (on November 22, 1999, TMC and
Toyota Technical Center U.S.A., Inc., a consolidated subsidiary of TMC, were
added as defendants) for alleged defects in the fuel evaporative emission leak
monitors installed on approximately 2.2 million 1996-1998 model year vehicles
sold by TMC in the U.S. in violation of the Clean Air Act.
The Environmental Protection Agency and the Department of Justice are seeking
the payment of fines and an injunction of sales of new 1996-1998 model year
vehicles that are not in compliance with applicable federal regulations. In
addition, they are also seeking TMC to take appropriate measures to remedy the
alleged non-compliance with the Clean Air Act and civil penalties of up to
US$27,500 per vehicle previously sold in violation of that Act.
The lawsuit is currently in the document production phase as part of
discovery procedures, but the discovery deadline has been extended several times
at the request of the U.S. government. TMC cannot predict the timetable on
which this lawsuit will proceed. TMC believes that it is in possession of
materials that refute the allegations of the U.S. government and intends to
present a vigorous defense.
(2) Expected Accounting Treatment regarding Return of the Substituted Portion of
the Employee Pension Fund to the Government under Accounting Principles
Generally Accepted in the United States
As stated in '1. Summary of Consolidated Financial Results of FY2003
Semi-Annual, (1) Financial Results', TMC recorded in its semi-annual
consolidated financial statements prepared in accordance with accounting
principles generally accepted in Japan 216.3 billion yen of the impact from
return of the substituted portion of the employee pension fund to the
government, of which 30.3billion yen was recorded as 'Equity in earnings of
affiliates' in non-operating income, and of which 186.0 billion yen was recorded
as 'Gains on return of substituted portion of employee pension fund' in
extraordinary gains. However, because the accounting treatment in the United
States would be different from the one in Japan, TMC does not expect to
recognize it as gain in its semi-annual consolidated financial statements
prepared in accordance with accounting principles generally accepted in the
United States for the six months period ended September 30, 2002.
CONSOLIDATED PRODUCTION AND SALES
( All financial information has been prepared in accordance with accounting
principles generally accepted in Japan)
1. Production
(Units)
FY2003 semi-annual FY2002 semi-annual Increase FY2002
(April 2002 through (April 2001 through (Decrease) (April 2001 through
September 2002) September 2001) March 2002)
Vehicles Japan 1,973,545 1,949,342 24,203 4,029,259
(new) North 458,484 380,968 77,516 792,526
America
Europe 186,482 107,853 78,629 308,914
Others 249,254 112,930 136,324 273,517
Overseas 894,220 601,751 292,469 1,374,957
total
Total 2,867,765 2,551,093 316,672 5,404,216
Houses (Japan) 1,505 1,347 158 3,095
Note: The total production of vehicles (new) includes Daihatsu brand vehicles
(including OEM production) of 337,714 units in FY2003 semi-annual, 304,519 units
in FY2002 semi-annual and 638,091 units in FY2002, and Hino brand vehicles
(including OEM production) of 26,820 units in FY2003 semi-annual and 27,159
units in FY 2002 (produced in the latter half of FY2002).
Annual production of Hino brand vehicles (including OEM production)
during the period from April 2001 through March 2002 was 52,965 units.
2. Sales (by destination)
(Units)
FY2003 semi-annual FY2002 semi-annual Increase FY2002
(April 2002 through (April 2001 through (Decrease) (April 2001 through
September 2002) September 2001) March 2002)
Vehicles Japan 1,024,151 1,077,465 (53,314) 2,217,002
(new) North 1,004,241 859,704 144,537 1,780,133
America
Europe 392,027 362,998 29,029 866,351
Others 598,343 392,100 206,243 921,431
Overseas 1,994,611 1,614,802 379,809 3,567,915
total
Total 3,018,762 2,692,267 326,495 5,784,917
Houses (Japan) 1,462 1,522 (60) 3,685
Note: The total sales of vehicles (new) includes Daihatsu brand vehicles of
318,817 units in FY2003 semi-annual, 272,621 units in FY2002 semi-annual and
573,543 units in FY2002, and Hino brand vehicles of 28,120 units in FY2003
semi-annual and 29,305 units in FY 2002 (sales for the latter half of FY2002).
Annual sales of Hino brand vehicles during the period from April 2001
through March 2002 was 55,459 units.
BREAKDOWN OF CONSOLIDATED NET SALES
( 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.)
FY2003 semi-annual FY2002 semi-annual Increase FY2002
(April 2002 through (April 2001 through (Decrease) (April 2001 through
September 2002) September 2001) March 2002)
Vehicles 6,135,735 5,376,491 759,244 11,858,751
Parts & components 113,357 108,991 4,366 194,531
for overseas
production
Parts 501,503 420,014 81,489 947,876
Others 528,540 353,870 174,670 856,858
Total Automotive 7,279,136 6,259,368 1,019,768 13,858,017
Financial services 341,737 308,005 33,732 676,723
Housing 37,119 38,664 (1,545) 83,570
Telecommunications 35,711 35,473 238 63,185
Others 192,976 192,049 927 424,801
Total 7,886,681 6,833,560 1,053,121 15,106,297
Note: The amounts represent net sales to external customers.
CONSOLIDATED 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.)
FY2003 semi-annual FY2002 semi-annual Increase FY2002
(April 2002 through (April 2001 (April 2001 through
September 2002) through (Decrease) March 2002)
September 2001)
Net sales 7,886,681 6,833,560 1,053,121 15,106,297
Cost of sales 5,933,485 5,231,678 701,807 11,518,782
Selling, general and 1,222,368 1,095,301 127,067 2,464,044
administrative expenses
Operating income 730,827 506,581 224,246 1,123,470
Non-operating income 155,871 122,301 33,570 244,111
Interest income 23,072 27,546 (4,474) 46,958
Dividend income 6,466 7,161 (695) 8,691
Equity in earnings of 51,627 21,344 30,283 15,046
affiliates
Other non-operating income 74,704 66,248 8,456 173,415
Non-operating expenses 92,671 102,232 (9,561) 254,057
Interest expenses 15,886 18,602 (2,716) 31,990
Other non-operating 76,784 83,630 (6,846) 222,067
expenses
Ordinary income 794,028 526,649 267,379 1,113,524
Extraordinary gains 186,050 - 186,050 -
Gains on return of 186,050 - 186,050 -
substituted portion of employee
pension fund
Income before income taxes 980,078 526,649 453,429 1,113,524
and minority interest in
consolidated subsidiaries
Income taxes - current 334,162 266,806 67,356 591,327
Income taxes - deferred 59,338 (37,607) 96,945 (111,169)
Minority interest in 32,780 6,337 26,443 17,541
consolidated subsidiaries
Net income 553,797 291,114 262,683 615,824
CONSOLIDATED 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.)
FY2003 semi-annual FY2002 Increase FY2002 semi-annual
(As of September (As of March (Decrease) (As of September
30, 2002) 31, 2002) 30, 2001)
Assets
Current assets 10,611,370 10,410,966 200,404 9,401,394
Cash and deposits 1,042,984 707,233 335,751 1,124,697
Trade notes and accounts 1,317,877 1,561,623 (243,746) 1,407,435
receivable
Marketable securities 1,447,001 1,605,460 (158,459) 1,264,925
Inventories 986,311 1,022,718 (36,407) 918,718
Installment credit from 3,480,274 3,334,357 145,917 2,716,279
dealers
Short-term loans 1,260,688 1,192,054 68,634 1,135,084
Deferred income taxes 383,622 379,668 3,954 368,496
Other current assets 812,948 718,693 94,255 534,730
Less: allowance for (120,339) (110,843) (9,496) (68,971)
doubtful accounts
Fixed assets 9,345,567 9,477,970 (132,403) 8,895,347
Property, plant and equipment 5,407,249 5,437,777 (30,528) 5,050,695
Buildings and structures 1,215,000 1,230,871 (15,871) 1,190,186
Machinery and equipment 1,174,074 1,179,305 (5,231) 1,106,401
Vehicles and delivery 1,237,833 1,269,275 (31,442) 1,118,180
equipment
Land 1,078,622 1,070,869 7,753 1,055,608
Construction in progress 268,288 270,497 (2,209) 164,266
Other property, plant and 433,430 416,958 16,472 416,051
equipment
Intangible fixed assets 4,116 4,328 (212) 4,278
Investments and other assets 3,934,200 4,035,865 (101,665) 3,840,373
Investments in securities 2,599,479 2,642,122 (42,643) 2,678,266
Long-term loans 727,049 796,349 (69,300) 691,425
Deferred income taxes 327,816 465,193 (137,377) 392,614
Other investments and 299,042 159,450 139,592 102,533
other assets
Less: allowance for (19,187) (27,251) 8,064 (24,465)
doubtful accounts
Total assets 19,956,937 19,888,937 68,000 18,296,742
(Million yen; amounts less than one million yen are omitted.)
FY2003 semi-annual FY2002 Increase FY2002 semi-annual
(As of September (As of March (Decrease) (As of September
30, 2002) 31, 2002) 30, 2001)
Liabilities
Current liabilities 7,165,451 7,183,071 (17,620) 6,264,913
Trade notes and accounts 1,420,607 1,483,170 (62,563) 1,340,797
payable
Current portion of bonds 1,008,708 1,020,930 (12,222) 849,363
Short-term borrowings 1,042,581 1,104,365 (61,784) 1,136,140
Commercial papers 1,102,701 952,553 150,148 616,901
Accrued expenses and other 1,410,512 1,433,216 (22,704) 1,255,818
accounts payable
Income taxes payable 309,352 339,304 (29,952) 256,947
Deferred income taxes 1,391 1,769 (378) 695
Other current liabilities 869,596 847,761 21,835 808,248
Long-term liabilities 4,808,334 4,916,572 (108,238) 4,530,482
Bonds 3,231,027 3,132,372 98,655 2,874,677
Convertible debentures - 13,308 (13,308) 13,308
Long-term borrowings 467,989 481,007 (13,018) 529,334
Deferred income taxes 338,381 398,273 (59,892) 350,149
Allowance for retirement 674,750 769,714 (94,964) 745,004
benefits
Other long-term 96,184 121,897 (25,713) 18,008
liabilities
Total liabilities 11,973,785 12,099,644 (125,859) 10,795,395
Minority interest in 472,094 464,220 7,874 456,828
consolidated subsidiaries
Shareholders' equity
Common stock 397,049 397,049 - 397,049
Capital reserve - 415,150 (415,150) 415,150
Capital surplus 415,769 - 415,769 -
Consolidated earned surplus - 6,527,956 (6,527,956) 6,253,584
Retained earnings 6,884,863 - 6,884,863 -
Net unrealized gains on other 151,609 152,809 (1,200) 168,926
securities
Translation adjustments (83,968) 22,855 (106,823) (151,885)
Less: treasury stock (254,265) (157,766) (96,499) (4,270)
Less: common stock of the Parent - (32,983) 32,983 (34,038)
held by consolidated
subsidiaries
Total shareholders' equity 7,511,057 7,325,072 185,985 7,044,517
Total liabilities and 19,956,937 19,888,937 68,000 18,296,742
shareholders' equity
Note: The 'Accounting Standard for Treasury Stock and Reversal of Legal
Reserves' has been applied during FY2003 semi-annual.
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
( 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.)
FY2003 semi-annual FY2002 semi-annual Increase FY2002
(April 2002 (April 2001 (April 2001
through through September (Decrease) through March
September 2002) 2001) 2002)
Consolidated earned surplus at - 6,162,656 (6,162,656) 6,162,656
beginning of period
Decreases in consolidated earned - 200,186 (200,186) 250,524
surplus
Dividends - 50,905 (50,905) 98,638
Bonuses to directors and - 2,096 (2,096) 2,050
corporate auditors
Decrease resulting from increase - 16,817 (16,817) 16,742
in consolidated subsidiaries
Decrease resulting from decrease - 1,148 (1,148) 3,874
in consolidated subsidiaries
Decrease resulting from share - 129,218 (129,218) 129,218
retirement by the parent company
Net income - 291,114 (291,114) 615,824
Consolidated earned surplus at end - 6,253,584 (6,253,584) 6,527,956
of period
(Capital surplus)
Capital surplus at beginning of 415,150 - 415,150 -
period
Capital reserve at beginning of 415,150 - 415,150 -
period
Increase in capital surplus 619 - 619 -
Gain on disposal of treasury 619 - 619 -
stock
Capital surplus at end of period 415,769 - 415,769 -
(Retained earnings)
Retained earnings at beginning of 6,527,956 - 6,527,956 -
period
Consolidated earned surplus at 6,527,956 - 6,527,956 -
beginning of period
Increases in retained earnings 555,567 - 555,567 -
Net income 553,797 - 553,797 -
Increase resulting from decrease 1,496 - 1,496 -
in consolidated subsidiaries
Increase resulting from increase 272 - 272 -
in affiliates accounted for under the
equity method
Decreases in retained earnings 198,660 - 198,660 -
Dividends 53,342 - 53,342 -
Bonuses to directors and 2,316 - 2,316 -
corporate auditors
Decrease resulting from increase 9 - 9 -
in consolidated subsidiaries
Decrease resulting from share 142,992 - 142,992 -
retirement by the parent company
Retained earnings at end of period 6,884,863 - 6,884,863 -
CONSOLIDATED STATEMENTS OF CASH FLOWS
( 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.)
FY2003 semi-annual FY2002 semi-annual FY2002
(April 2002 (April 2001 (April 2001
through September through September through March
2002) 2001) 2002)
Cash flows from operating activities
Income before income taxes and minority interest in 980,078 526,649 1,113,524
consolidated subsidiaries
Depreciation expenses 416,044 382,075 803,607
Losses on disposal of fixed assets 25,820 14,906 52,637
Increase (Decrease) in allowance for retirement (181,472) 38,908 131,187
benefits
Interest and dividend income (29,539) (34,707) (55,649)
Interest expenses 15,886 18,602 31,990
Equity in earnings of affiliates (51,627) (21,344) (15,046)
Increase in trade notes and accounts receivable (143,035) (68,923) (583,422)
Increase in loans receivable of consolidated (98,704) (58,889) (91,321)
financial subsidiaries
Decrease in inventories 7,805 67,788 11,512
Increase (Decrease) in trade notes and accounts (45,766) (113,443) 14,686
payable
Others (4,133) (40,935) (174,576)
Subtotal 891,355 710,687 1,239,130
Interest and dividends received 38,860 43,310 68,454
Interest paid (15,574) (18,860) (31,475)
Income taxes paid (382,641) (281,813) (516,959)
Cash flows from operating activities 532,001 453,325 759,149
Cash flows from investing activities
Net decrease (increase) in time deposits (11,248) 25,458 34,828
Payments for purchase of marketable securities and (483,502) (203,139) (667,893)
investments in securities
Proceeds from sales of marketable securities and 107,632 82,373 159,139
investments in securities
Proceeds from redemption of marketable securities 462,247 300,377 604,080
and investments in securities
Payments for acquisition of property, plant and (533,773) (461,419) (961,402)
equipment (excluding vehicles for lease)
Payments for acquisition of vehicles for lease (256,877) (287,774) (566,690)
Proceeds from sales of property, plant and 31,605 32,050 65,119
equipment (excluding vehicles for lease)
Proceeds from sales of vehicles for lease 126,598 234,186 408,422
Others 34,403 (34,770) (29,635)
Cash flows from investing activities (522,914) (312,656) (954,031)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings (72,158) 90,571 26,112
Net increase (decrease) in commercial papers 207,884 (176,912) 78,331
Proceeds from origination of long-term borrowings 49,762 111,612 261,823
Payments for repayment of long-term borrowings (63,047) (102,795) (293,559)
Proceeds from issuance of bonds 840,917 734,130 1,493,896
Payments for redemption of bonds (498,603) (244,134) (830,294)
Payments for purchase of treasury stock (169,213) (129,218) (282,849)
Dividends paid (53,342) (50,905) (98,638)
Others (5,089) (4,818) (6,816)
Cash flows from financing activities 237,111 227,530 348,005
Effect of exchange rate changes on cash and cash (40,937) (10,741) 32,375
equivalents
Net increase in cash and cash equivalents 205,261 357,457 185,499
Cash and cash equivalents at beginning of period 1,688,126 1,507,280 1,507,280
Decrease in cash and cash equivalents due to change in - (4,654) (4,654)
scope of consolidated subsidiaries
Cash and cash equivalents at end of period 1,893,387 1,860,083 1,688,126
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, carry
minimal risk of change in value and have a redemption period of three months or
less.
SIGNIFICANT ACCOUNTING POLICIES
( All financial information has been prepared in accordance with accounting
principles generally accepted in Japan)
1. Valuation of securities:
Securities are principally evaluated on the following basis
Other securities with fair value:
Stated at fair value based on market prices, etc. at end of the
semi-annual period
(Both unrealized gains and losses are included in 'Net unrealized
gains on other securities', a component of shareholders' equity; cost
of sales is determined using the moving average method.)
Other securities not practicable to fair value:
Stated at cost determined using the moving average method
2. Valuation of derivatives:
Principally stated at fair value
3. Valuation of money trusts for trading purposes:
Stated at fair value
4. Valuation of inventories:
TMC and domestic consolidated subsidiaries:
Principally stated at cost, as determined using the periodic average
method or the specific identification method
Overseas consolidated subsidiaries:
Principally stated at the lower of cost or market value based on the
following: the specific identification method, first-in-first-out
method or last-in-first-out method
5. Depreciation of property, plant and equipment:
TMC and domestic consolidated subsidiaries:
Principally computed using the declining balance method
Overseas consolidated subsidiaries:
Principally computed using the straight-line method
6. Amortization of intangible fixed assets:
Computed using the straight-line method
7. Significant reserves:
Allowance for doubtful accounts:
TMC: To prepare for losses from bad debt, allowance for doubtful
accounts is provided in an amount equivalent to the maximum limit
deductible for tax purposes which is determined by the Corporation
Tax Laws or an amount determined by considering the collectibility of
receivable
Consolidated subsidiaries:
Principally computed based on the maximum limit deductible for tax
purposes which is determined by the Corporation Tax Laws or the
historical loss experience
Allowance for employee bonus:
To provide for employee bonuses, some of the consolidated subsidiaries
accrue part of the estimated bonus payments attributable to the
current semi-annual period
Allowance for retirement benefits:
Principally to provide for the retirement benefits for employees,
including those already retired, allowance for retirement benefits is
stated based on estimated retirement benefit obligations and estimated
pension assets at the end of semi-annual period
8. Consumption taxes:
Computed based on the net-of-tax method
NOTES TO CONSOLIDATED BALANCE SHEETS
( All financial information has been prepared in accordance with accounting
principles generally accepted in Japan)
1. Accumulated depreciation of property, plant and equipment
7,770,939 million yen
2. Leased assets (as a lessor) of 1,109,561 million yen are included in
'Vehicles and delivery equipment'
3. Assets pledged as collateral and secured liability
Assets pledged as collateral Notes receivable 42,874 million yen
Installment credit from dealers 94,699 million yen
Buildings and structures 68,954 million yen
Machinery and equipment 18,167 million yen
Land 103,622 million yen
Others 22,285 million yen
Secured liability Short-term borrowings 147,280 million yen
Long-term borrowings 76,378 million yen
Bonds 94,699 million yen
4. Liabilities for guarantees 823,367 million yen
5. Trade notes receivable discounted 12,014 million yen
Trade notes receivable endorsed 55 million yen
NOTES TO CONSOLIDATED STATEMENTS OF CASH FLOWS
( All financial information has been prepared in accordance with accounting
principles generally accepted in Japan)
Reconciliation of cash and cash equivalents and accounts on the consolidated
balance sheet at end of FY2003 semi-annual.
Cash and deposits 1,042,984 million yen
Marketable securities 1,447,001 million yen
Total 2,489,986 million yen
Time deposits, bonds and others with original maturity exceeding a ( 596,599 ) million yen
three-month period
Cash and cash equivalents 1,893,387 million yen
SEGMENT INFORMATION
( All financial information has been prepared in accordance with accounting
principles generally accepted in Japan)
1. Business Segment Information
(1) FY2003 Semi-Annual (April 2002 through September 2002)
(Million yen; amounts less than one million yen are omitted.)
Automotive Financial All other Total Elimination Consolidated
services and/or
unallocated
assets
Net sales
(1) Sales to external 7,279,136 341,737 265,807 7,886,681 - 7,886,681
customers
(2) Inter-segment 3,173 8,444 131,226 142,844 (142,844) -
sales and
transfers
Total 7,282,310 350,182 397,034 8,029,526 (142,844) 7,886,681
Operating expenses 6,548,048 347,568 394,463 7,290,080 (134,226) 7,155,853
Operating income 734,261 2,614 2,570 739,446 (8,618) 730,827
Assets 9,073,001 7,198,614 809,616 17,081,232 2,875,704 19,956,937
Depreciation 353,238 53,364 9,441 416,044 - 416,044
expenses
Capital expenditure 495,270 224,332 17,730 737,333 - 737,333
(2) FY2002 Semi-Annual (April 2001 through September 2001)
(Million yen; amounts less than one million yen are omitted.)
Automotive Financial All other Total Elimination Consolidated
services and/or
unallocated
assets
Net sales
(1) Sales to external 6,259,368 308,005 266,187 6,833,560 - 6,833,560
customers
(2) Inter-segment 23,766 7,576 122,184 153,526 (153,526) -
sales and
transfers
Total 6,283,134 315,581 388,371 6,987,087 (153,526) 6,833,560
Operating expenses 5,791,163 295,707 385,816 6,472,686 (145,707) 6,326,979
Operating income 491,971 19,873 2,555 514,400 (7,819) 506,581
Assets 8,968,180 5,965,004 697,863 15,631,048 2,665,693 18,296,742
Depreciation 320,051 52,751 9,272 382,075 - 382,075
expenses
Capital expenditure 422,730 229,055 18,405 670,190 - 670,190
(3) FY2002 (April 2001 through March 2002)
(Million yen; amounts less than one million yen are omitted.)
Automotive Financial All other Total Elimination Consolidated
services and/or
unallocated
assets
Net sales
(1) Sales to external 13,858,017 676,723 571,557 15,106,297 - 15,106,297
customers
(2) Inter-segment 51,908 16,662 247,912 316,483 (316,483) -
sales and
transfers
Total 13,909,926 693,385 819,470 15,422,781 (316,483) 15,106,297
Operating expenses 12,831,828 624,727 820,367 14,276,922 (294,095) 13,982,827
Operating income 1,078,097 68,657 (896) 1,145,858 (22,387) 1,123,470
Assets 9,458,096 7,069,278 778,650 17,306,025 2,582,911 19,888,937
Depreciation 681,049 102,098 20,460 803,607 - 803,607
expenses
Capital expenditure 989,445 478,589 40,736 1,508,771 - 1,508,771
Note: Unallocated corporate assets included under 'Elimination and/or
unallocated assets' for FY2003 semi-annual, FY2002 semi-annual and FY2002 are
3,354,735 million yen, 3,011,167 million yen and 3,016,176 million yen,
respectively, and consist primarily of funds such as cash and deposits,
marketable securities and portion of investments in securities held by TMC.
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
(Million yen; amounts less than one million yen are omitted.)
FY2003 semi-annual FY2002 semi-annual Increase
(April 2002 through (April 2001 through (Decrease)
September 2002) September 2001)
(Non-financial services)
Net sales 7,543,567 6,545,434 998,133
Cost of sales 5,697,351 5,025,563 671,788
Selling, general and administrative expenses 1,107,360 1,021,963 85,397
Operating income 738,855 497,906 240,949
Non-operating income 153,290 119,859 33,431
Non-operating expenses 95,605 102,767 (7,162)
Ordinary income 796,540 514,999 281,541
Extraordinary gains 186,050 - 186,050
Gains on return of substituted portion 186,050 - 186,050
of employee pension fund
Income before income taxes and minority 982,591 514,999 467,592
interest in consolidated subsidiaries
Income taxes 395,175 224,848 170,327
Minority interest in consolidated subsidiaries 32,519 6,069 26,450
Net income 554,895 284,081 270,814
(Financial services)
Net sales 350,182 315,581 34,601
Cost of sales 232,141 218,888 13,253
Selling, general and administrative expenses 115,426 76,818 38,608
Operating income 2,614 19,873 (17,259)
Non-operating income 5,522 4,181 1,341
Non-operating expenses 4,543 4,573 (30)
Ordinary income 3,592 19,481 (15,889)
Income before income taxes and minority 3,592 19,481 (15,889)
interest in consolidated subsidiaries
Income taxes 594 7,425 (6,831)
Minority interest in consolidated subsidiaries 272 267 5
Net income 2,725 11,789 (9,064)
(Elimination)
Elimination of net income (3,823) (4,756) 933
(Consolidated)
Net income 553,797 291,114 262,683
(2) Consolidated Balance Sheets as Classified into Non-Financial Services
Business and Financial Services Business
(Million yen; amounts less than one million yen are omitted.)
FY2003 semi-annual FY2002 Increase
(As of September (As of March (Decrease)
30,2002) 31,2002)
Assets
(Non-financial services)
Current assets 5,913,043 5,857,335 55,708
Cash and deposits 947,523 549,398 398,125
Trade notes and accounts receivable 1,337,361 1,572,060 (234,699)
Marketable securities 1,440,996 1,601,256 (160,260)
Inventories 986,311 1,022,718 (36,407)
Other current assets, etc. 1,200,850 1,111,902 88,948
Fixed assets 7,591,927 7,663,886 (71,959)
Property, plant and equipment 4,354,678 4,353,811 867
Investments and other assets 3,237,249 3,310,074 (72,825)
Investments in securities 2,381,021 2,389,376 (8,355)
Long-term loans 374,268 399,349 (25,081)
Other investments and other assets, etc. 481,959 521,349 (39,390)
Total 13,504,971 13,521,221 (16,250)
(Financial services)
Current assets 5,227,220 5,011,868 215,352
Cash and deposits 95,460 157,835 (62,375)
Marketable securities 6,814 4,204 2,610
Installment credit from dealers 3,362,829 3,214,276 148,553
Other current assets, etc. 1,762,115 1,635,551 126,564
Fixed assets 1,971,393 2,057,410 (86,017)
Property, plant and equipment 1,052,571 1,083,966 (31,395)
Intangible fixed assets 4,116 4,328 (212)
Investments and other assets 914,705 969,115 (54,410)
Investments in securities 218,457 252,746 (34,289)
Long-term loans 570,747 640,907 (70,160)
Other investments and other assets, etc. 125,500 75,461 50,039
Total 7,198,614 7,069,278 129,336
(Elimination)
Elimination of assets (746,648) (701,563) (45,085)
(Consolidated)
Total assets 19,956,937 19,888,937 68,000
Note: Assets in the non-financial services include unallocated corporate
assets.
(Million yen; amounts less than one million yen are omitted.)
FY2003 semi-annual FY2002 Increase
(As of September (As of March 31,2002) (Decrease)
30,2002)
Liabilities
(Non-financial services)
Current liabilities 4,414,239 4,583,985 (169,746)
Trade notes and accounts payable 1,413,256 1,475,934 (62,678)
Current portion of bonds 69,899 154,150 (84,251)
Short-term borrowings 866,630 922,792 (56,162)
Accrued expenses and other accounts 1,294,760 1,305,518 (10,758)
payable
Income taxes payable 306,821 333,171 (26,350)
Other current liabilities, etc. 462,871 392,418 70,453
Long-term liabilities 1,548,859 1,620,829 (71,970)
Bonds and convertible debentures 500,400 413,808 86,592
Long-term borrowings 236,640 255,928 (19,288)
Other long-term liabilities, etc. 811,818 951,092 (139,274)
Total 5,963,099 6,204,815 (241,716)
(Financial services)
Current liabilities 3,273,597 3,049,099 224,498
Current portion of bonds 939,619 866,780 72,839
Short-term borrowings 664,435 605,697 58,738
Commercial papers 1,077,307 923,989 153,318
Accrued expenses and other accounts 139,106 151,310 (12,204)
payable
Income taxes payable 2,530 6,133 (3,603)
Other current liabilities, etc. 450,598 495,187 (44,589)
Long-term liabilities 3,484,220 3,548,381 (64,161)
Bonds 2,730,627 2,731,872 (1,245)
Long-term borrowings 456,094 477,716 (21,622)
Other long-term liabilities, etc. 297,498 338,792 (41,294)
Total 6,757,817 6,597,481 160,336
(Elimination)
Elimination of liabilities (747,130) (702,652) (44,478)
(Consolidated)
Total liabilities 11,973,785 12,099,644 (125,859)
(Consolidated)
Minority interest in consolidated 472,094 464,220 7,874
subsidiaries
Shareholders' equity
(Consolidated)
Common stock 397,049 397,049 -
Capital reserve - 415,150 (415,150)
Capital surplus 415,769 - 415,769
Consolidated earned surplus - 6,527,956 (6,527,956)
Retained earnings 6,884,863 - 6,884,863
Net unrealized gains on other securities 151,609 152,809 (1,200)
Translation adjustments (83,968) 22,855 (106,823)
Less: treasury stock (254,265) (157,766) (96,499)
Less: common stock of the Parent held by - (32,983) 32,983
consolidated subsidiaries
Total shareholders' equity 7,511,057 7,325,072 185,985
(Consolidated)
Total liabilities and shareholders' equity 19,956,937 19,888,937 68,000
(3) Consolidated Statements of Cash Flows as Classified into Non-Financial
Services Business and Financial Services Business
(Million yen; amounts less than one million yen are omitted.)
FY2003 semi-annual FY2002 semi-annual
(April 2002 (April 2001
through September through September
2002) 2001)
(Non-financial services)
Cash flows from operating activities
Income before income taxes and minority interest in consolidated 982,591 514,999
subsidiaries
Depreciation expenses 362,679 329,323
Losses on disposal of fixed assets 25,680 14,463
Increase (Decrease) in allowance for retirement benefits (182,293) 38,652
Interest and dividend income (30,473) (34,710)
Interest expenses 21,710 23,574
Equity in earnings of affiliates (46,873) (19,694)
Decrease in trade notes and accounts receivable 247,847 256,909
Decrease in inventories 7,805 69,132
Decrease in trade notes and accounts payable (46,458) (105,816)
Others 95,493 (49,592)
Subtotal 1,437,710 1,037,241
Interest and dividends received 38,029 41,884
Interest paid (21,398) (24,237)
Income taxes paid (376,974) (277,191)
Cash flows from operating activities 1,077,366 777,698
Cash flows from investing activities
Net decrease in time deposits 663 30,855
Payments for purchase of marketable securities and investments in (388,605) (87,265)
securities
Proceeds from sales of marketable securities and investments in 77,796 31,841
securities
Proceeds from redemption of marketable securities and investments 386,119 206,291
in securities
Payments for acquisition of property, plant and equipment (509,178) (433,959)
(excluding vehicles for lease)
Payments for acquisition of vehicles for lease (57,793) (87,000)
Proceeds from sales of property, plant and equipment (excluding 25,434 26,103
vehicles for lease)
Proceeds from sales of vehicles for lease 19,839 63,769
Others (20,566) (27,291)
Cash flows from investing activities (466,291) (276,656)
Cash flows from financing activities
Net decrease in short-term borrowings (61,792) (38,140)
Proceeds from origination of long-term borrowings 8,675 50,462
Payments for repayment of long-term borrowings (33,992) (58,317)
Payments for purchase of treasury stock (169,213) (129,218)
Dividends paid (53,342) (50,905)
Others 7,973 (18,639)
Cash flows from financing activities (301,690) (244,758)
Effect of exchange rate changes on cash and cash equivalents (32,659) (6,992)
Net increase in cash and cash equivalents 276,725 249,290
Cash and cash equivalents at beginning of period 1,541,940 1,453,148
Decrease in cash and cash equivalents due to change in scope of - (4,654)
consolidated subsidiaries
Cash and cash equivalents at end of period 1,818,666 1,697,784
(Million yen; amounts less than one million yen are omitted.)
FY2003 semi-annual FY2002 semi-annual
(April 2002 (April 2001
through September through September
2002) 2001)
(Financial services)
Cash flows from operating activities
Income before income taxes and minority interest in consolidated 3,592 19,481
subsidiaries
Depreciation expenses 53,364 52,751
Equity in earnings of affiliates (4,754) (1,650)
Increase in trade notes and accounts receivable (400,729) (324,913)
Increase in loans receivable of consolidated financial subsidiaries (98,704) (58,889)
Others (94,232) (6,661)
Subtotal (541,463) (319,882)
Interest and dividends received 1,766 1,234
Income taxes paid (5,666) (4,622)
Cash flows from operating activities (545,364) (323,269)
Cash flows from investing activities
Net increase in time deposits (11,911) (5,396)
Payments for purchase of marketable securities and investments in (95,707) (115,873)
securities
Proceeds from sales of marketable securities and investments in 29,836 50,531
securities
Proceeds from redemption of marketable securities and investments 76,127 94,086
in securities
Payments for acquisition of property, plant and equipment (24,594) (27,459)
(excluding vehicles for lease)
Payments for acquisition of vehicles for lease (199,084) (200,774)
Proceeds from sales of property, plant and equipment (excluding 6,171 5,947
vehicles for lease)
Proceeds from sales of vehicles for lease 106,758 170,417
Others 17,900 (8,216)
Cash flows from investing activities (94,502) (36,737)
Cash flows from financing activities
Net increase in short-term borrowings 29,242 125,140
Net increase (decrease) in commercial papers 210,671 (175,091)
Proceeds from origination of long-term borrowings 47,942 124,416
Payments for repayment of long-term borrowings (38,451) (104,538)
Proceeds from issuance of bonds 691,727 734,130
Payments for redemption of bonds (364,453) (244,134)
Others - 12,000
Cash flows from financing activities 576,679 471,923
Effect of exchange rate changes on cash and cash equivalents (8,277) (3,749)
Net increase (decrease) in cash and cash equivalents (71,464) 108,166
Cash and cash equivalents at beginning of period 146,185 54,132
Cash and cash equivalents at end of period 74,721 162,299
(Consolidated)
Effect of exchange rate changes on cash and cash equivalents (40,937) (10,741)
Net increase in cash and cash equivalents 205,261 357,457
Cash and cash equivalents at beginning of period 1,688,126 1,507,280
Decrease in cash and cash equivalents due to change in scope of - (4,654)
consolidated subsidiaries
Cash and cash equivalents at end of period 1,893,387 1,860,083
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, carry
minimal risk of change in value and have a redemption period of three months or
less.
3. Geographical Segment Information
(1) FY2003 Semi-Annual (April 2002 through September 2002)
(Million yen; amounts less than one million yen are omitted.)
Japan North America Europe Other Total Elimination Consolidated
and/or
unallocated
assets
Net sales
(1) Sales to 3,300,299 3,091,451 714,199 780,731 7,886,681 - 7,886,681
external
customers
(2) Inter-segment 2,088,302 127,371 32,043 43,169 2,290,887 (2,290,887) -
sales and
transfers
Total 5,388,602 3,218,822 746,243 823,901 10,177,568 (2,290,887) 7,886,681
Operating 4,852,733 3,039,678 740,825 799,339 9,432,577 (2,276,723) 7,155,853
expenses
Operating income 535,868 179,144 5,417 24,561 744,991 (14,163) 730,827
Assets 8,928,115 6,457,512 1,301,488 967,875 17,654,992 2,301,945 19,956,937
(2) FY2002 Semi-Annual (April 2001 through September 2001)
(Million yen; amounts less than one million yen are omitted.)
Japan North America Europe Other Total Elimination Consolidated
and/or
unallocated
assets
Net sales
(1) Sales to 3,132,091 2,642,610 598,600 460,258 6,833,560 - 6,833,560
external
customers
(2) Inter-segment 1,789,492 81,157 18,054 48,690 1,937,395 (1,937,395) -
sales and
transfers
Total 4,921,583 2,723,768 616,655 508,948 8,770,956 (1,937,395) 6,833,560
Operating 4,509,117 2,618,816 621,872 505,417 8,255,223 (1,928,244) 6,326,979
expenses
Operating income 412,466 104,951 (5,217) 3,531 515,732 (9,150) 506,581
Assets 8,907,241 5,551,040 973,730 800,994 16,233,007 2,063,734 18,296,742
(3) FY2002 (April 2001 through March 2002)
(Million yen; amounts less than one million yen are omitted.)
Japan North America Europe Other Total Elimination Consolidated
and/or
unallocated
assets
Net sales
(1) Sales to 6,698,686 5,587,784 1,537,324 1,282,502 15,106,297 - 15,106,297
external
customers
(2) Inter-segment 3,835,050 244,552 57,137 117,923 4,254,664 (4,254,664) -
sales and
transfers
Total 10,533,737 5,832,337 1,594,461 1,400,426 19,360,962 (4,254,664) 15,106,297
Operating 9,663,410 5,566,687 1,606,867 1,380,671 18,217,637 (4,234,810) 13,982,827
expenses
Operating income 870,326 265,649 (12,405) 19,754 1,143,324 (19,853) 1,123,470
Assets 9,253,687 6,534,782 1,215,021 960,048 17,963,539 1,925,397 19,888,937
Note: Unallocated corporate assets included under 'Elimination and/or
unallocated assets' for FY2003 semi-annual, FY2002 semi-annual and FY2002 are
3,354,735 million yen, 3,011,167 million yen and 3,016,176 million yen,
respectively, and consist primarily of funds such as cash and deposits,
marketable securities and portion of investments in securities held by TMC.
4. Overseas Sales
(1) FY2003 Semi-Annual (April 2002 through September 2002)
(Million yen; amounts less than one million yen are omitted.)
North America Europe Other Total
Overseas sales 3,216,881 717,383 1,328,687 5,262,952
Consolidated sales - - - 7,886,681
Ratio of overseas sales to % % % %
consolidated sales 40.8 9.1 16.8 66.7
(2) FY2002 Semi-Annual (April 2001 through September 2001)
(Million yen; amounts less than one million yen are omitted.)
North America Europe Other Total
Overseas sales 2,713,208 616,333 895,050 4,224,592
Consolidated sales - - - 6,833,560
Ratio of overseas sales to % % % %
consolidated sales 39.7 9.0 13.1 61.8
(3) FY2002 (April 2001 through March 2002)
(Million yen; amounts less than one million yen are omitted.)
North America Europe Other Total
Overseas sales 5,796,721 1,572,732 2,168,685 9,538,139
Consolidated sales - - - 15,106,297
Ratio of overseas sales to % % % %
consolidated sales 38.4 10.4 14.3 63.1
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.)
FY2003 semi-annual FY2002 semi-annual Increase FY2002
(April 2002 through (April 2001 through (Decrease) (April 2001
September 2002) September 2001) through
March 2002)
Ordinary profits and losses
Operating revenue and expenses
Operating revenue 4,204,777 4,011,942 192,835 8,284,968
Net sales 4,204,777 4,011,942 192,835 8,284,968
Operating expenses 3,733,437 3,657,725 75,712 7,536,043
Cost of sales 3,276,590 3,226,379 50,211 6,618,526
Selling, general and administrative 456,847 431,346 25,501 917,517
expenses
Operating income 471,339 354,216 117,123 748,924
Non-operating income and expenses
Non-operating income 79,881 84,727 (4,846) 174,212
Interest income 10,672 12,512 (1,840) 23,069
Dividend income 35,236 25,980 9,256 34,488
Other non-operating income 33,972 46,235 (12,263) 116,654
Non-operating expenses 69,470 91,832 (22,362) 154,215
Interest expenses 5,356 5,310 46 10,669
Other non-operating expenses 64,113 86,521 (22,408) 143,546
Ordinary income 481,750 347,112 134,638 768,920
Extraordinary gains and losses
Extraordinary gains 162,457 - 162,457 -
Gains on return of substituted 162,457 - 162,457 -
portion of employee pension fund
Income before income taxes 644,208 347,112 297,096 768,920
Income taxes - current 238,200 200,200 38,000 418,800
Income taxes - deferred 23,789 (56,685) 80,474 (120,118)
Net income 382,218 203,598 178,620 470,239
Unappropriated retained earnings brought 306,006 66,919 239,087 66,919
forward
Retirement of shares 142,992 129,218 13,774 129,218
Interim cash dividends - - - 47,434
Unappropriated retained earnings at end 545,233 141,299 403,934 360,506
of period
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.)
FY2003 semi-annual FY2002 Increase FY2002
(As of (As of (Decrease) semi-annual
September 30,2002) March 31,2002) (As of
September
30,2001)
Assets
Current assets 3,538,809 3,431,039 107,770 3,118,153
Cash and deposits 697,828 265,802 432,026 619,666
Trade notes receivable - - - 4
Trade accounts receivable 730,718 994,390 (263,672) 782,500
Marketable securities 1,025,272 1,190,085 (164,813) 885,950
Finished goods 132,343 107,794 24,549 108,735
Raw materials 13,060 14,843 (1,783) 13,389
Work in process 62,736 66,987 (4,251) 64,934
Supplies 6,564 6,323 241 6,537
Short-term loans 241,698 182,204 59,494 107,967
Deferred income taxes 235,126 216,084 19,042 179,914
Other current assets 399,560 395,623 3,937 356,053
Less : allowance for doubtful (6,100) (9,100) 3,000 (7,500)
accounts
Fixed assets 4,945,282 5,036,891 (91,609) 4,905,425
Property, plant and equipment 1,247,897 1,275,101 (27,204) 1,233,588
Buildings 345,767 350,141 (4,374) 350,353
Structures 40,953 42,360 (1,407) 42,043
Machinery and equipment 353,392 341,507 11,885 346,344
Vehicle and delivery equipment 9,525 9,398 127 8,390
Tools, furniture and fixtures 78,388 79,848 (1,460) 73,774
Land 400,250 400,484 (234) 396,425
Construction in progress 19,619 51,360 (31,741) 16,256
Investments and other assets 3,697,384 3,761,789 (64,405) 3,671,837
Investments in securities 1,764,662 1,832,686 (68,024) 1,921,941
Investments in subsidiaries 1,200,646 1,223,747 (23,101) 1,148,503
Long-term loans 380,461 389,309 (8,848) 311,844
Deferred income taxes 244,678 297,445 (52,767) 262,120
Other investments 117,935 25,600 92,335 30,027
Less : allowance for doubtful (11,000) (7,000) (4,000) (2,600)
accounts
Total assets 8,484,092 8,467,930 16,162 8,023,579
(Million yen; amounts less than one million yen are omitted.)
FY2003 semi-annual FY2002 Increase FY2002
(As of (As of (Decrease) semi-annual
September 30,2002) March 31,2002) (As of
September
30,2001)
Liabilities
Current liabilities 1,775,776 1,961,602 (185,826) 1,619,939
Trade notes payable 928 1,202 (274) 791
Trade accounts payable 716,985 731,445 (14,460) 658,773
Current portion of bonds 50,000 114,150 (64,150) 114,150
Accrued liabilities 278,517 348,720 (70,203) 273,343
Income taxes payable 238,917 262,336 (23,419) 193,906
Accrued expenses 361,263 352,215 9,048 327,415
Deposits received 98,596 118,809 (20,213) 35,032
Other current liabilities 30,567 32,723 (2,156) 16,527
Long-term liabilities 868,107 844,169 23,938 791,453
Bonds 500,600 400,600 100,000 400,600
Allowance for retirement benefits 292,653 391,458 (98,805) 380,243
Other long-term liabilities 74,853 52,111 22,742 10,610
Total liabilities 2,643,883 2,805,772 (161,889) 2,411,392
Shareholders' equity
Common stock 397,049 397,049 - 397,049
Capital surplus 415,150 415,150 - 415,150
Capital reserve 415,150 415,150 - 415,150
Retained earnings 5,092,561 4,908,068 184,493 4,688,861
Legal reserve 99,454 99,454 - 99,454
Reserve for losses on overseas 396 397 (1) 397
investments
Reserve for special depreciation 1,547 1,396 151 1,396
Reserve for reduction of 5,004 5,386 (382) 5,386
acquisition cost of fixed assets
General reserve 4,440,926 4,440,926 - 4,440,926
Unappropriated retained earnings at 545,233 360,506 184,727 141,299
end of period
<382,218> < 470,239 > <(88,021)> < 203,598 >
Net unrealized gains on other securities 113,789 99,656 14,133 111,124
Less: treasury stock (178,342) (157,766) (20,576) -
Total shareholders' equity 5,840,208 5,662,158 178,050 5,612,186
Total liabilities and shareholders' equity 8,484,092 8,467,930 16,162 8,023,579
Note : The scope of subsidiaries is determined in accordance with the provisions
of the Japan's Commercial Code.
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