Toyota Motor (TM) 6-K FY2021 Second Quarter

FINANCIAL SUMMARY

(All financial information has been prepared in accordance with International Financial Reporting Standards)

FY2021 Second Quarter

(April 1, 2020 through September 30, 2020)

English translation from the original Japanese-language document

TOYOTA MOTOR CORPORATION

FY2021 Second Quarter Consolidated Financial Results

(All financial information has been prepared in accordance with International Financial Reporting Standards)

English translation from the original Japanese-language document

November 6, 2020

Company name	:	Toyota Motor Corporation
Stock exchanges on which the shares are listed	:	Tokyo and Nagoya Stock Exchanges in Japan
Code number	:	7203
URL	:	https://global.toyota/jp/
Representative	:	Akio Toyoda, President
Contact person	:	Kaname Shimizu, General Manager, Accounting Division Tel. (0565)28-2121
Filing date of quarterly securities report	:	November 12, 2020
Payment date of cash dividends	:	November 27, 2020
Supplemental materials prepared for quarterly financial results	:	yes
Earnings announcement for quarterly financial results	:	yes

(Amounts are rounded to the nearest million yen)

1. Consolidated Results for FY2021 First Half (April 1, 2020 through September 30, 2020)

(1) Consolidated financial results (For the six months ended September 30)

	(% of change from previous first half)
	Sales revenues				Operating income				Income before income taxes				Net income				Net income attributable to Toyota Motor Corporation				Comprehensive income
	Million yen		%		Million yen		%		Million yen		%		Million yen		%		Million yen		%		Million yen		%
FY2021 first half		11,375,223		-25.9		519,981		-62.8		728,815		-55.1		631,189		-46.7		629,368		-45.3		537,170		-49.8
FY2020 first half		15,358,277		—		1,399,218		—		1,621,819		—		1,183,993		—		1,149,540		—		1,069,686		—

	Net income attributable to Toyota Motor Corporation –  Basic		Net income attributable to Toyota Motor Corporation –  Diluted
	Yen		Yen
FY2021 first half		225.21		223.81
FY2020 first half		407.90		403.51

(2) Consolidated financial position

	Total assets		Total shareholders’ equity		Toyota Motor  Corporation shareholders’ equity		Ratio of Toyota Motor Corporation shareholders’ equity
	Million yen		Million yen		Million yen		%
FY2021 second quarter		56,483,801		21,796,070		21,010,831		37.2
FY2020		53,972,363		21,339,012		20,618,888		38.2

2. Cash Dividends

	Annual cash dividends per common share
	End of first quarter		End of second quarter		End of third quarter		Year-end		Total
	Yen		Yen		Yen		Yen		Yen
FY2020		—		100.00		—		120.00		220.00
FY2021		—		105.00
FY2021 (forecast)						—		—		—

(Note)

Revisions to the forecast of cash dividends since the latest announcement:  none

Please refer to “(Reference) Cash Dividends on Class Shares” for information regarding cash dividends on class shares, which are unlisted and have different rights from common stock. Breakdown of Annual cash dividends per common share at end of second quarter: Special Dividends 5.00yen Please refer to [Notice Concerning Distribution of Interim Dividends from Surplus] released on November 6th for further information.

3. Forecast of Consolidated Results for FY2021 (April 1, 2020 through March 31, 2021)

	(% of change from FY2020)
	Sales revenues				Operating income				Income before income taxes				Net income attributable to Toyota Motor Corporation				Net income attributable to Toyota Motor Corporation – Basic
	Million yen		%		Million yen		%		Million yen		%		Million yen		%		Yen
Full-year		26,000,000		-12.9		1,300,000		-45.8		1,760,000		-37.0		1,420,000		-30.3		508.00

(Note) Revisions to the forecast of consolidated results since the latest announcement:  yes

Notes

(1) Changes in significant subsidiaries during the current quarter

(Changes in specified subsidiaries that caused a change in the scope of consolidation): none

(2) Changes in accounting policies and changes in accounting estimates

(i) Changes in accounting policies required by IFRS: none

(ii) Changes other than (2)-(i) above: none

(iii) Changes in accounting estimates: none

(3) Number of shares issued and outstanding (common stock)

(i) Number of shares issued and outstanding at the end of each period (including treasury stock):

FY2021 second quarter 3,262,997,492 shares, FY2020    3,262,997,492 shares

(ii) Number of treasury stock at the end of each period:

FY2021 second quarter 467,038,225 shares, FY2020    496,844,960 shares

(iii) Average number of shares issued and outstanding in each period:

FY2021 first half 2,794,624,899 shares, FY2020 first half 2,818,172,637 shares

This report is not reviewed.

Cautionary Statement with Respect to Forward-Looking Statements, and Other Information

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, but are not limited to: (i) changes in economic conditions, market demand, and the competitive environment affecting the automotive markets in Japan, North America, Europe, Asia and other markets in which Toyota operates; (ii) fluctuations in currency exchange rates, particularly with respect to the value of the Japanese yen, the U.S. dollar, the euro, the Australian dollar, the Russian ruble, the Canadian dollar and the British pound, fluctuations in stock prices, and interest rates fluctuations; (iii) changes in funding environment in financial markets and increased competition in the financial services industry; (iv) Toyota’s ability to market and distribute effectively; (v) Toyota’s ability to realize production efficiencies and to implement capital expenditures at the levels and times planned by management; (vi) changes in the laws, regulations and government policies in the markets in which Toyota operates that affect Toyota’s automotive operations, particularly laws, regulations and government policies relating to vehicle safety including remedial measures such as recalls, trade, environmental protection, vehicle emissions and vehicle fuel economy, as well as changes in laws, regulations and government policies that affect Toyota’s other operations, including the outcome of current and future litigation and other legal proceedings, government proceedings and investigations; (vii) political and economic instability in the markets in which Toyota operates; (viii) Toyota’s ability to timely develop and achieve market acceptance of new products that meet customer demand; (ix) any damage to Toyota’s brand image; (x) Toyota’s reliance on various suppliers for the provision of supplies; (xi) increases in prices of raw materials; (xii) Toyota’s reliance on various digital and information technologies; (xiii) fuel shortages or interruptions in electricity, transportation systems, labor strikes, work stoppages or other interruptions to, or difficulties in, the employment of labor in the major markets where Toyota purchases materials, components and supplies for the production of its products or where its products are produced, distributed or sold; and (xiv) the impact of natural calamities as well as the outbreak and spread of epidemics, including the negative effect on Toyota’s vehicle production and sales.

A discussion of these and other factors which may affect Toyota’s actual results, performance, achievements or financial position is contained in Toyota’s annual report on Form 20-F, which is on file with the United States Securities and Exchange Commission.

The global spread of COVID-19 and the responses to it by governments and other stakeholders have adversely affected Toyota in a number of ways. For reasons such as government directives as well as anticipated reduced demand for its vehicles, Toyota has temporarily suspended, or intends to temporarily suspend, production of automobiles and components at selected plants in Japan and overseas. COVID-19 has also affected, and is expected to continue to affect, the businesses of Toyota dealers and distributors, as well as certain of Toyota’s third-party suppliers and business partners. In addition, the global spread of COVID-19 and related matters have adversely affected businesses in a wide variety of industries, as well as consumers, all of which negatively impacted demand for Toyota’s vehicles and related financial services.

The duration of the global spread of COVID-19 and the resulting future effects are uncertain, and the foregoing impacts and other effects not referenced above, as well as the ultimate impact of COVID-19, are difficult to predict and could have an adverse effect on Toyota’s financial condition and results of operations.

The parent company has adopted International Financial Reporting Standards (“IFRS”) for its consolidated financial statements beginning with the first quarter ended June 30, 2020. In addition, consolidated financial statements for the first half ended September 30, 2019 and for the fiscal year ended March 31, 2020 are also presented in accordance with IFRS.

(Reference) Cash Dividends on Class Shares

Cash dividends on class shares, which have different rights from common stock, are as follows:

	Annual cash dividends per First Series Model AA Class Share
	End of first quarter		End of second quarter		End of third quarter		Year-end		Total
	Yen		Yen		Yen		Yen		Yen
FY2020		—		132.00		—		132.00		264.00
FY2021		—		132.00
FY2021 (forecast)						—		—		—

(Note)   The First Series Model AA Class Shares were issued in July 2015.

TOYOTA MOTOR CORPORATION    FY2021 Second Quarter Financial Summary

TABLE OF CONTENTS

Condensed Quarterly Consolidated Financial Statements and Notes to Condensed Quarterly Consolidated Financial Statements	2
1. Condensed Quarterly Consolidated Statement of Financial Position	2
2. Condensed Quarterly Consolidated Statement of Income and Condensed Quarterly Consolidated Statement of Comprehensive Income	4
3. Condensed Quarterly Consolidated Statement of Changes in Equity	8
4. Condensed Quarterly Consolidated Statement of Cash Flows	9
5. Going Concern Assumption	10
6. First-Time Adoption	11
Supplemental Material for Financial Results for FY2021 Second Quarter

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TOYOTA MOTOR CORPORATION    FY2021 Second Quarter Financial Summary

Condensed Quarterly Consolidated Financial Statements and

Notes to Condensed Quarterly Consolidated Financial Statements

1. Condensed Quarterly Consolidated Statement of Financial Position

	Yen in millions
	April 1, 2019			March 31, 2020			September 30, 2020
Assets
Current assets
Cash and cash equivalents		3,602,805			4,098,450			5,514,438
Trade accounts and other receivables		2,954,617			2,648,360			2,710,991
Receivables related to financial services		6,657,367			6,621,604			6,149,428
Other financial assets		2,640,392			2,143,602			3,159,565
Inventories		2,731,040			2,533,892			2,709,366
Income tax receivable		84,574			237,609			244,064
Other current assets		507,654			679,804			575,895
Total current assets		19,178,450			18,963,320			21,063,746
Non-current assets
Investments accounted for using the equity method		3,467,242			4,297,564			3,883,603
Receivables related to financial services		10,281,028			10,417,797			11,068,933
Other financial assets		7,769,740			7,901,517			7,740,041
Property, plant and equipment
Land		1,359,271			1,318,964			1,347,492
Buildings		4,833,278			4,741,451			4,852,130
Machinery and equipment		11,956,773			11,979,449			12,225,528
Vehicles and equipment on operating leases		6,139,163			5,928,833			5,812,866
Construction in progress		656,067			517,460			566,140
Total property, plant and equipment, at cost		24,944,551			24,486,156			24,804,155
Less - Accumulated depreciation and impairment losses		(14,260,446	)		(13,952,141	)		(14,102,957	)
Total property, plant and equipment, net		10,684,105			10,534,016			10,701,198
Right of use assets		396,830			337,335			377,192
Intangible assets		908,737			1,000,257			1,051,104
Deferred tax assets		446,383			326,364			346,796
Other non-current assets		283,889			194,192			251,188
Total non-current assets		34,237,955			35,009,043			35,420,055
Total assets		53,416,405			53,972,363			56,483,801

—2—

TOYOTA MOTOR CORPORATION    FY2021 Second Quarter Financial Summary

	Yen in millions
	April 1, 2019			March 31, 2020			September 30, 2020
Liabilities
Current liabilities
Trade accounts and other payables		3,856,133			3,498,029			3,606,113
Short-term and current portion of long-term debt		9,701,813			9,906,755			11,399,117
Accrued expenses		1,350,252			1,256,794			1,246,375
Other financial liabilities		475,302			538,740			667,935
Income taxes payable		321,316			212,276			211,834
Liabilities for quality assurance		1,769,514			1,552,970			1,449,433
Other current liabilities		1,008,032			1,176,645			1,162,300
Total current liabilities		18,482,362			18,142,209			19,743,107
Non-current liabilities
Long-term debt		11,342,315			11,434,219			12,151,882
Other financial liabilities		189,957			360,588			331,426
Retirement benefit liabilities		1,002,710			1,022,161			1,050,697
Deferred tax liabilities		1,227,292			1,198,005			984,247
Other non-current liabilities		516,560			476,169			426,373
Total non-current liabilities		14,278,833			14,491,142			14,944,625
Total liabilities		32,761,195			32,633,351			34,687,732
Shareholders’ equity
Common stock		397,050			397,050			397,050
Additional paid-in capital		487,162			489,334			504,514
Retained earnings		20,613,776			22,234,061			22,553,281
Other components of equity		1,016,035			585,549			457,583
Treasury stock		(2,606,925	)		(3,087,106	)		(2,901,598	)
Total Toyota Motor Corporation shareholders’ equity		19,907,100			20,618,888			21,010,831
Non-controlling interests		748,110			720,124			785,239
Total shareholders’ equity		20,655,210			21,339,012			21,796,070
Total liabilities and shareholders’ equity		53,416,405			53,972,363			56,483,801

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TOYOTA MOTOR CORPORATION    FY2021 Second Quarter Financial Summary

2. Condensed Quarterly Consolidated Statement of Income and

    Condensed Quarterly Consolidated Statement of Comprehensive Income

Condensed Quarterly Consolidated Statement of Income

	Yen in millions
	For the first half ended September 30, 2019			For the first half ended September 30, 2020
Sales revenues
Sales of products		14,277,156			10,317,155
Financial services		1,081,121			1,058,068
Total sales revenues		15,358,277			11,375,223
Costs and expenses
Cost of products sold		11,901,359			9,078,239
Cost of financial services		653,198			599,409
Selling, general and administrative		1,404,502			1,177,594
Total costs and expenses		13,959,059			10,855,242
Operating income		1,399,218			519,981
Share of profit (loss) of investments accounted for using the equity method		199,866			76,390
Other finance income		141,703			167,974
Other finance costs		(22,549	)		(23,237	)
Foreign exchange gain (loss), net		(83,312	)		(12,185	)
Other income (loss), net		(13,107	)		(107	)
Income before income taxes		1,621,819			728,815
Income tax expense		437,827			97,627
Net income		1,183,993			631,189
Net income attributable to
Toyota Motor Corporation		1,149,540			629,368
Non-controlling interests		34,453			1,821
Net income		1,183,993			631,189
	Yen
Earnings per share attributable to Toyota Motor Corporation
Basic		407.90			225.21
Diluted		403.51			223.81

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TOYOTA MOTOR CORPORATION    FY2021 Second Quarter Financial Summary

Condensed Quarterly Consolidated Statement of Comprehensive Income
	Yen in millions
	For the first half ended September 30, 2019			For the first half ended September 30, 2020
Net income		1,183,993			631,189
Other comprehensive income, net of tax
Items that will not be reclassified to profit (loss)
Net changes in revaluation of financial assets measured at fair value through other comprehensive income		101,311			(10,034	)
Remeasurements of defined benefit plans		(5,074	)		(2,135	)
Share of other comprehensive income of equity method investees		41,855			(41,853	)
Total of items that will not be reclassified to profit (loss)		138,093			(54,022	)
Items that may be reclassified subsequently to profit (loss)
Exchange differences on translating foreign operations		(268,554	)		10,788
Net changes in revaluation of financial assets measured at fair value through other comprehensive income		64,608			(15,099	)
Share of other comprehensive income of equity method investees		(48,453	)		(35,686	)
Total of items that may be reclassified subsequently to profit (loss)		(252,400	)		(39,996	)
Total other comprehensive income, net of tax		(114,307	)		(94,019	)
Comprehensive income		1,069,686			537,170
Comprehensive income for the period attributable to
Toyota Motor Corporation		1,041,184			523,192
Non-controlling interests		28,502			13,978
Comprehensive income		1,069,686			537,170

—5—

TOYOTA MOTOR CORPORATION    FY2021 Second Quarter Financial Summary

Condensed Quarterly Consolidated Statement of Income
	Yen in millions
	For the second quarter ended September 30, 2019			For the second quarter ended September 30, 2020
Sales revenues
Sales of products		7,099,592			6,247,300
Financial services		537,412			527,127
Total sales revenues		7,637,004			6,774,427
Costs and expenses
Cost of products sold		5,973,620			5,351,939
Cost of financial services		311,792			274,341
Selling, general and administrative		692,985			642,086
Total costs and expenses		6,978,397			6,268,366
Operating income		658,607			506,061
Share of profit (loss) of investments accounted for using the equity method		95,122			88,962
Other finance income		64,152			53,185
Other finance costs		(12,707	)		(13,225	)
Foreign exchange gain (loss), net		(20,252	)		(20,695	)
Other income (loss), net		(14,087	)		(3,706	)
Income before income taxes		770,834			610,582
Income tax expense		218,224			128,841
Net income		552,610			481,741
Net income attributable to
Toyota Motor Corporation		530,409			470,525
Non-controlling interests		22,201			11,216
Net income		552,610			481,741
	Yen
Earnings per share attributable to Toyota Motor Corporation
Basic		189.08			168.29
Diluted		187.12			166.68

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TOYOTA MOTOR CORPORATION    FY2021 Second Quarter Financial Summary

Condensed Quarterly Consolidated Statement of Comprehensive Income
	Yen in millions
	For the second quarter ended September 30, 2019			For the second quarter ended September 30, 2020
Net income		552,610			481,741
Other comprehensive income, net of tax
Items that will not be reclassified to profit (loss)
Net changes in revaluation of financial assets measured at fair value through other comprehensive income		38,594			(154,116	)
Remeasurements of defined benefit plans		(321	)		(557	)
Share of other comprehensive income of equity method investees		(3,159	)		44,568
Total of items that will not be reclassified to profit (loss)		35,113			(110,106	)
Items that may be reclassified subsequently to profit (loss)
Exchange differences on translating foreign operations		(97,399	)		(54,531	)
Net changes in revaluation of financial assets measured at fair value through other comprehensive income		24,720			(19,113	)
Share of other comprehensive income of equity method investees		(37,355	)		6,022
Total of items that may be reclassified subsequently to profit (loss)		(110,034	)		(67,622	)
Total other comprehensive income, net of tax		(74,921	)		(177,728	)
Comprehensive income		477,690			304,013
Comprehensive income for the period attributable to
Toyota Motor Corporation		458,635			296,935
Non-controlling interests		19,055			7,079
Comprehensive income		477,690			304,013

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TOYOTA MOTOR CORPORATION    FY2021 Second Quarter Financial Summary

3. Condensed Quarterly Consolidated Statement of Changes in Equity

For the first half ended September 30, 2019

	Yen in millions
	Common stock		Additional paid-in capital		Retained earnings			Other components of equity			Treasury stock			Toyota Motor Corporation shareholders’ equity			Non- controlling interests			Total shareholders’ equity
Balances at April 1, 2019		397,050		487,162		20,613,776			1,016,035			(2,606,925	)		19,907,100			748,110			20,655,210
Comprehensive income
Net income		—		—		1,149,540			—			—			1,149,540			34,453			1,183,993
Other comprehensive income, net of tax		—		—		—			(108,356	)		—			(108,356	)		(5,951	)		(114,307	)
Total comprehensive income		—		—		1,149,540			(108,356	)		—			1,041,184			28,502			1,069,686
Transactions with owners and other
Dividends paid		—		—		(339,893	)		—			—			(339,893	)		(38,837	)		(378,730	)
Repurchase of treasury stock		—		—		—			—			(300,153	)		(300,153	)		—			(300,153	)
Equity transactions and other		—		3,979		—			—			—			3,979			(12,679	)		(8,700	)
Total transactions with owners and other		—		3,979		(339,893	)		—			(300,153	)		(636,067	)		(51,516	)		(687,583	)
Reclassification to retained earnings		—		—		(1,308	)		1,308			—			—			—			—
Balances at September 30, 2019		397,050		491,142		21,422,115			908,987			(2,907,078	)		20,312,216			725,096			21,037,312
For the first half ended September 30, 2020
	Yen in millions
	Common stock		Additional paid-in capital		Retained earnings			Other components of equity			Treasury stock			Toyota Motor Corporation shareholders’ equity			Non- controlling interests			Total shareholders’ equity
Balances at April 1, 2020		397,050		489,334		22,234,061			585,549			(3,087,106	)		20,618,888			720,124			21,339,012
Comprehensive income
Net income		—		—		629,368			—			—			629,368			1,821			631,189
Other comprehensive income, net of tax		—		—		—			(106,176	)		—			(106,176	)		12,157			(94,019	)
Total comprehensive income		—		—		629,368			(106,176	)		—			523,192			13,978			537,170
Transactions with owners and other
Dividends paid		—		—		(331,938	)		—			—			(331,938	)		(32,583	)		(364,521	)
Repurchase of treasury stock		—		—		—			—			(35	)		(35	)		—			(35	)
Reissuance of treasury stock		—		15,039		—			—			185,543			200,582			—			200,582
Change in scope of consolidation		—		—		—			—			—			—			67,762			67,762
Equity transactions and other		—		141		—			—			—			141			15,958			16,099
Total transactions with owners and other		—		15,180		(331,938	)		—			185,508			(131,250	)		51,138			(80,112	)
Reclassification to retained earnings		—		—		21,790			(21,790	)		—			—			—			—
Balances at September 30, 2020		397,050		504,514		22,553,281			457,583			(2,901,598	)		21,010,831			785,239			21,796,070

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TOYOTA MOTOR CORPORATION    FY2021 Second Quarter Financial Summary

4. Condensed Quarterly Consolidated Statement of Cash Flows

	Yen in millions
	For the first half  ended September 30, 2019			For the first half  ended September 30, 2020
Cash flows from operating activities
Net income		1,183,993			631,189
Depreciation and amortization		783,868			810,588
Interest income and interest costs related to financial services, net		(87,955	)		(99,035	)
Share of profit (loss) of investments accounted for using the equity method		(199,866	)		(76,390	)
Income tax expense		437,827			97,627
Changes in operating assets and liabilities, and other		(538,213	)		(120,227	)
Interest received		390,299			383,627
Dividends received		230,037			207,457
Interest paid		(246,991	)		(230,791	)
Income taxes paid, net of refunds		(392,575	)		(314,530	)
Net cash provided by (used in) operating activities		1,560,424			1,289,514
Cash flows from investing activities
Additions to fixed assets excluding equipment leased to others		(649,398	)		(611,362	)
Additions to equipment leased to others		(1,199,913	)		(958,611	)
Proceeds from sales of fixed assets excluding equipment leased to others		17,772			20,587
Proceeds from sales of equipment leased to others		727,933			640,001
Additions to intangible assets		(133,622	)		(139,051	)
Additions to public and corporate bonds and stocks		(652,446	)		(1,120,804	)
Proceeds from sales of public and corporate bonds and stocks and upon maturity of public and corporate bonds		1,243,066			1,260,560
Other, net		(241,679	)		(1,013,142	)
Net cash provided by (used in) investing activities		(888,287	)		(1,921,821	)
Cash flows from financing activities
Increase (decrease) in short-term debt		15,266			(542,499	)
Proceeds from long-term debt		2,680,720			5,351,917
Payments of long-term debt		(2,174,766	)		(2,613,277	)
Dividends paid to Toyota Motor Corporation common shareholders		(339,893	)		(331,938	)
Dividends paid to non-controlling interests		(38,837	)		(32,583	)
Reissuance (repurchase) of treasury stock		(300,153	)		199,965
Net cash provided by (used in) financing activities		(157,663	)		2,031,585
Effect of exchange rate changes on cash and cash equivalents		(90,451	)		16,710
Net increase (decrease) in cash and cash equivalents		424,023			1,415,987
Cash and cash equivalents at beginning of period		3,602,805			4,098,450
Cash and cash equivalents at end of period		4,026,828			5,514,438

—9—

TOYOTA MOTOR CORPORATION    FY2021 Second Quarter Financial Summary

5. Going Concern Assumption

None

—10—

TOYOTA MOTOR CORPORATION    FY2021 Second Quarter Financial Summary

6. First-Time Adoption

Transition to reporting in accordance with IFRS

Toyota Motor Corporation (“TMC”) has prepared its condensed consolidated financial statements in accordance with IFRS from the first quarter ended June 30, 2020.

Up to the fiscal year ended March 31, 2020, TMC and its consolidated subsidiaries (“Toyota”) prepared its consolidated financial statements in accordance with Generally Accepted Accounting Principles in the United States (“U.S. GAAP”). The date of the transition to IFRS (“Transition Date”) was April 1, 2019.

IFRS 1 “First-time Adoption of International Financial Reporting Standards” (“IFRS 1”) stipulates that, in principle, the retrospective application of IFRS is required. However, it provides some voluntary and mandatory exemptions from full retrospective applications. TMC elected such exemptions with respect to the following items.

Business combination -

IFRS 3 “Business Combinations”, was not applied retrospectively to business combinations that occurred before the Transition Date.

Foreign currency translation adjustments of foreign operations -

The cumulative foreign currency translation adjustments were reclassified from other comprehensive income to retained earnings as of the Transition Date.

Designation of equity financial assets -

Equity financial assets recognized before the Transition Date were designated as financial assets measured at fair value through other comprehensive income based on the facts and circumstances that existed as of the Transition Date.

Deemed cost -

IFRS 1 permits a first time adopter to elect to use fair value at the Transition Date as deemed cost for items of property, plant and equipment. For some property, plant and equipment, the fair value at the Transition Date is used as deemed cost.

Recognition of right of use assets and lease liabilities -

When a first time adopter that is a lessee recognizes right of use assets and lease liabilities, it is permitted to measure right of use assets and lease liabilities at the Transition Date under IFRS 1. Toyota measured all lease liabilities at the Transition Date, using the present value of the remaining lease payments discounted by the lessee’s incremental borrowing rate at the Transition Date. Toyota measured right of use assets at the Transition Date, making them equal to the lease liabilities.

For leases for which the lease term ends within 12 months of the Transition Date, lease payments associated with those leases were recognized as profit or loss on a straight-line basis over the lease term.

—11—

TOYOTA MOTOR CORPORATION    FY2021 Second Quarter Financial Summary

Reconciliation of U.S. GAAP to IFRS

Toyota has made the necessary adjustments to the previously disclosed U.S. GAAP consolidated financial statements or quarterly consolidated financial statements in transition to IFRS.

Items that do not affect retained earnings and comprehensive income are included in “Reclassification,” and items that affect retained earnings and comprehensive income are included in “Adjustment of recognition and measurement” of the reconciliation tables.

—12—

TOYOTA MOTOR CORPORATION    FY2021 Second Quarter Financial Summary

Reconciliation of equity as of the transition date (April 1, 2019)

	Yen in millions
Presentation under U.S. GAAP	U.S. GAAP			Reclassification			Adjustment of recognition and measurement			IFRS			Notes	Presentation under IFRS
Assets														Assets
Current assets														Current assets
Cash and cash equivalents		3,574,704			—			28,101			3,602,805			Cash and cash equivalents
Trade accounts and notes receivable, less allowance for doubtful accounts		2,372,734			568,156			13,728			2,954,617		A	Trade accounts and other receivables
Other receivables		568,156			(568,156	)		—			—		A
Finance receivables, net		6,647,771			—			9,596			6,657,367			Receivables related to financial services
Time deposits		1,126,352			1,508,812			5,228			2,640,392		B,C,D	Other financial assets
Marketable securities		1,127,160			(1,127,160	)		—			—		B
Inventories		2,656,396			—			74,644			2,731,040		a	Inventories
		—			84,281			293			84,574		E	Income tax receivable
Prepaid expenses and other current assets		805,964			(297,502	)		(807	)		507,654		C,D,E	Other current assets
Total current assets		18,879,237			168,431			130,781			19,178,450			Total current assets
														Non-current assets
Investments in affiliated companies		3,313,723			54,004			99,516			3,467,242			Investments accounted for using the equity method
Noncurrent finance receivables, net		10,281,118			—			(90	)		10,281,028			Receivables related to financial services
Marketable securities and other securities investments		7,479,926			238,009			51,806			7,769,740		D,F,G,b	Other financial assets
Employees receivables		21,683			(21,683	)		—			—		F
Property, plant and equipment														Property, plant and equipment
Land		1,386,308			1,353			(28,391	)		1,359,271		c	Land
Buildings		4,802,175			(14,489	)		45,593			4,833,278			Buildings
Machinery and equipment		11,857,425			(6,097	)		105,445			11,956,773			Machinery and equipment
Vehicles and equipment on operating leases		6,139,163			—			—			6,139,163			Vehicles and equipment on operating leases
Construction in progress		651,713			61			4,293			656,067			Construction in progress
Total property, plant and equipment, at cost		24,836,784			(19,172	)		126,939			24,944,551			Total property, plant and equipment, at cost
Less - Accumulated depreciation		(14,151,290	)		(8,140	)		(101,016	)		(14,260,446	)		Less - Accumulated depreciation and impairment losses
Total property, plant and equipment, net		10,685,494			(27,313	)		25,923			10,684,105			Total property, plant and equipment, net
		—			27,313			369,517			396,830		d	Right of use assets
		—			297,394			611,343			908,737		G,e	Intangible assets
		—			501,872			(55,489	)		446,383		G,f	Deferred tax assets
Other		1,275,768			(991,888	)		9			283,889		G	Other non-current assets
		33,057,712			77,709			1,102,535			34,237,955			Total non-current assets
Total assets		51,936,949			246,140			1,233,316			53,416,405			Total assets

—13—

TOYOTA MOTOR CORPORATION    FY2021 Second Quarter Financial Summary

	Yen in millions
Presentation under U.S. GAAP	U.S. GAAP			Reclassification			Adjustment of recognition and measurement			IFRS			Notes	Presentation under IFRS
Liabilities														Liabilities
Current liabilities														Current liabilities
Accounts payable		2,645,984			1,180,657			29,492			3,856,133		H	Trade accounts and other payables
Other payables		1,102,802			(1,102,802	)		—			—		H
Short-term borrowings		5,344,973			4,254,260			102,580			9,701,813		I,d	Short-term and current portion of long-term debt
Current portion of long-term debt		4,254,260			(4,254,260	)		—			—		I
Accrued expenses		3,222,446			(1,870,433	)		(1,761	)		1,350,252		J	Accrued expenses
		—			475,409			(107	)		475,302		D,K	Other financial liabilities
Income taxes payable		320,998			—			318			321,316			Income taxes payable
		—			1,769,275			239			1,769,514		J	Liabilities for quality assurance
Other current liabilities		1,335,475			(339,131	)		11,688			1,008,032		D,K	Other current liabilities
Total current liabilities		18,226,938			112,975			142,449			18,482,362			Total current liabilities
Long-term liabilities														Non-current liabilities
Long-term debt		10,550,945			498,073			293,298			11,342,315		L,d	Long-term debt
		—			189,957			—			189,957		D	Other financial liabilities
Accrued pension and severance costs		963,406			37,532			1,771			1,002,710			Retirement benefit liabilities
Deferred income taxes		1,014,851			11,670			200,771			1,227,292		f	Deferred tax liabilities
Other long-term liabilities		615,599			(105,994	)		6,955			516,560			Other non-current liabilities
Total long-term liabilities		13,144,801			631,238			502,794			14,278,833			Total non-current liabilities
Total liabilities		31,371,739			744,213			645,244			32,761,195			Total liabilities
Mezzanine equity		498,073			(498,073	)		—			—		L
Shareholders’ equity														Shareholders’ equity
Toyota Motor Corporation shareholders’ equity
Common stock, no par value		397,050			—			—			397,050			Common stock
Additional paid-in capital		487,162			—			—			487,162			Additional paid-in capital
Retained earnings		21,987,515			—			(1,373,738	)		20,613,776		j	Retained earnings
Accumulated other comprehensive income (loss)		(916,650	)		—			1,932,686			1,016,035		b,g,h	Other components of equity
Treasury stock, at cost		(2,606,925	)		—			—			(2,606,925	)		Treasury stock
Total Toyota Motor Corporation shareholders’ equity		19,348,152			—			558,947			19,907,100			Total Toyota Motor Corporation shareholders’ equity
Noncontrolling interests		718,985			—			29,125			748,110			Non-controlling interests
Total shareholders’ equity		20,067,137			—			588,072			20,655,210			Total shareholders’ equity
Total mezzanine equity and shareholders’ equity		20,565,210			(498,073	)		588,072			20,655,210
Commitments and contingencies
Total liabilities, mezzanine equity and shareholders’ equity		51,936,949			246,140			1,233,316			53,416,405			Total liabilities and shareholders’ equity

—14—

TOYOTA MOTOR CORPORATION    FY2021 Second Quarter Financial Summary

Reconciliation of equity as of the end of the second quarter (September 30, 2019)
	Yen in millions
Presentation under U.S. GAAP	U.S. GAAP			Reclassification			Adjustment of recognition and measurement			IFRS			Notes	Presentation under IFRS
Assets														Assets
Current assets														Current assets
Cash and cash equivalents		3,979,764			—			47,064			4,026,828			Cash and cash equivalents
Trade accounts and notes receivable, less allowance for doubtful accounts		2,228,524			549,874			578			2,778,976		A	Trade accounts and other receivables
Other receivables		549,874			(549,874	)		—			—		A
Finance receivables, net		6,558,020			—			7,919			6,565,939			Receivables related to financial services
Time deposits		1,334,616			1,298,763			3,257			2,636,635		B,C,D	Other financial assets
Marketable securities		876,440			(876,440	)		—			—		B
Inventories		2,576,968			—			7,966			2,584,934		a	Inventories
		—			80,888			314			81,201		E	Income tax receivable
Prepaid expenses and other current assets		872,710			(295,432	)		238			577,515		C,D,E	Other current assets
Total current assets		18,976,916			207,778			67,334			19,252,028			Total current assets
														Non-current assets
Investments in affiliated companies		3,392,862			58,924			105,208			3,556,994			Investments accounted for using the equity method
Noncurrent finance receivables, net		10,396,209			—			(988	)		10,395,221			Receivables related to financial services
Marketable securities and other securities investments		7,220,663			255,864			55,571			7,532,098		D,F,G,b	Other financial assets
Employees receivables		21,790			(21,790	)		—			—		F
Property, plant and equipment														Property, plant and equipment
Land		1,362,252			239			(30,361	)		1,332,129		c	Land
Buildings		4,755,496			(5,385	)		34,013			4,784,125			Buildings
Machinery and equipment		11,791,699			(32,720	)		86,098			11,845,077			Machinery and equipment
Vehicles and equipment on operating leases		5,947,228			—			72			5,947,300			Vehicles and equipment on operating leases
Construction in progress		646,680			59			1,329			648,069			Construction in progress
Total property, plant and equipment, at cost		24,503,355			(37,807	)		91,151			24,556,699			Total property, plant and equipment, at cost
Less - Accumulated depreciation		(13,907,954	)		(796	)		(99,579	)		(14,008,330	)		Less - Accumulated depreciation and impairment losses
Total property, plant and equipment, net		10,595,401			(38,603	)		(8,429	)		10,548,370			Total property, plant and equipment, net
		—			373,157			188			373,346		G	Right of use assets
		—			322,776			610,328			933,104		G,e	Intangible assets
		—			477,324			(33,731	)		443,593		G,f	Deferred tax assets
Other		1,636,237			(1,311,528	)		(8,900	)		315,809		G	Other non-current assets
		33,263,162			116,125			719,247			34,098,534			Total non-current assets
Total assets		52,240,078			323,903			786,581			53,350,562			Total assets

—15—

TOYOTA MOTOR CORPORATION    FY2021 Second Quarter Financial Summary

	Yen in millions
Presentation under U.S. GAAP	U.S. GAAP			Reclassification			Adjustment of recognition and measurement			IFRS			Notes	Presentation under IFRS
Liabilities														Liabilities
Current liabilities														Current liabilities
Accounts payable		2,546,545			979,637			15,528			3,541,710		H	Trade accounts and other payables
Other payables		937,139			(937,139	)		—			—		H
Short-term borrowings		5,198,456			4,514,511			(28,502	)		9,684,465		I	Short-term and current portion of long-term debt
Current portion of long-term debt		4,453,335			(4,453,335	)		—			—		I
Accrued expenses		3,064,629			(1,756,874	)		18,783			1,326,537		J	Accrued expenses
		—			513,943			(5,748	)		508,195		D,K	Other financial liabilities
Income taxes payable		277,766			—			3,226			280,992			Income taxes payable
		—			1,641,716			(1,623	)		1,640,092		J	Liabilities for quality assurance
Other current liabilities		1,454,390			(338,063	)		(766	)		1,115,561		D,K	Other current liabilities
Total current liabilities		17,932,260			164,395			898			18,097,553			Total current liabilities
Long-term liabilities														Non-current liabilities
Long-term debt		10,340,214			774,994			1,356			11,116,565		L,M	Long-term debt
		—			257,775			—			257,775		D	Other financial liabilities
Accrued pension and severance costs		969,810			37,633			7,606			1,015,049			Retirement benefit liabilities
Deferred income taxes		1,092,125			11,288			232,544			1,335,957		f	Deferred tax liabilities
Other long-term liabilities		903,352			(420,438	)		7,438			490,352		M	Other non-current liabilities
Total long-term liabilities		13,305,501			661,252			248,944			14,215,697			Total non-current liabilities
Total liabilities		31,237,761			825,647			249,842			32,313,250			Total liabilities
Mezzanine equity		501,744			(501,744	)		—			—		L
Shareholders’ equity														Shareholders’ equity
Toyota Motor Corporation shareholders’ equity
Common stock, no par value		397,050			—			—			397,050			Common stock
Additional paid-in capital		491,142			—			—			491,142			Additional paid-in capital
Retained earnings		22,913,956			—			(1,491,841	)		21,422,115		j	Retained earnings
Accumulated other comprehensive income (loss)		(1,099,428	)		—			2,008,414			908,987		b,g,h	Other components of equity
Treasury stock, at cost		(2,907,078	)		—			—			(2,907,078	)		Treasury stock
Total Toyota Motor Corporation shareholders’ equity		19,795,642			—			516,574			20,312,216			Total Toyota Motor Corporation shareholders’ equity
Noncontrolling interests		704,931			—			20,165			725,096			Non-controlling interests
Total shareholders’ equity		20,500,573			—			536,739			21,037,312			Total shareholders’ equity
Total mezzanine equity and shareholders’ equity		21,002,317			(501,744	)		536,739			21,037,312
Commitments and contingencies
Total liabilities, mezzanine equity and shareholders’ equity		52,240,078			323,903			786,581			53,350,562			Total liabilities and shareholders’ equity

—16—

TOYOTA MOTOR CORPORATION    FY2021 Second Quarter Financial Summary

Reconciliation of equity as of the end of the prior period (March 31, 2020)
	Yen in millions
Presentation under U.S. GAAP	U.S. GAAP			Reclassification			Adjustment of recognition and measurement			IFRS			Notes	Presentation under IFRS
Assets														Assets
Current assets														Current assets
Cash and cash equivalents		4,190,518			—			(92,068	)		4,098,450			Cash and cash equivalents
Trade accounts and notes receivables, less allowance for doubtful accounts		2,094,894			564,854			(11,389	)		2,648,360		A	Trade accounts and other receivables
Other receivables		564,854			(564,854	)		—			—		A
Finance receivables, net		6,614,171			—			7,433			6,621,604			Receivables related to financial services
Time deposits		828,220			1,316,339			(958	)		2,143,602		B,C,D	Other financial assets
Marketable securities		678,731			(678,731	)		—			—		B
Inventories		2,434,918			—			98,974			2,533,892		a	Inventories
		—			237,333			275			237,609		E	Income tax receivable
Prepaid expenses and other current assets		1,236,225			(578,614	)		22,193			679,804		C,D,E	Other current assets
Total current assets		18,642,531			296,327			24,462			18,963,320			Total current assets
														Non-current assets
Investments in affiliated companies		4,123,453			81,731			92,380			4,297,564			Investments accounted for using the equity method
Noncurrent finance receivables, net		10,423,858			49			(6,109	)		10,417,797			Receivables related to financial services
Marketable securities and other securities investments		7,348,651			502,296			50,570			7,901,517		D,F,G,b	Other financial assets
Employees receivables		21,484			(21,484	)		—			—		F
Property, plant and equipment														Property, plant and equipment
Land		1,346,988			165			(28,189	)		1,318,964		c	Land
Buildings		4,730,783			(19,860	)		30,528			4,741,451			Buildings
Machinery and equipment		11,939,121			(43,092	)		83,419			11,979,449			Machinery and equipment
Vehicles and equipment on operating leases		5,929,233			—			(400	)		5,928,833			Vehicles and equipment on operating leases
Construction in progress		510,963			60			6,438			517,460			Construction in progress
Total property, plant and equipment, at cost		24,457,088			(62,728	)		91,797			24,486,156			Total property, plant and equipment, at cost
Less - Accumulated depreciation		(13,855,563	)		2,355			(98,933	)		(13,952,141	)		Less - Accumulated depreciation and impairment losses
Total property, plant and equipment, net		10,601,525			(60,373	)		(7,136	)		10,534,016			Total property, plant and equipment, net
		—			337,442			(107	)		337,335		G	Right of use assets
		—			374,263			625,994			1,000,257		G,e	Intangible assets
		—			354,785			(28,420	)		326,364		G,f	Deferred tax assets
Other		1,518,934			(1,331,576	)		6,834			194,192		G	Other non-current assets
		34,037,905			237,133			734,005			35,009,043			Total non-current assets
Total assets		52,680,436			533,460			758,468			53,972,363			Total assets

—17—

TOYOTA MOTOR CORPORATION    FY2021 Second Quarter Financial Summary

	Yen in millions
Presentation under U.S. GAAP	U.S. GAAP			Reclassification			Adjustment of recognition and measurement			IFRS			Notes	Presentation under IFRS
Liabilities														Liabilities
Current liabilities														Current liabilities
Accounts payable		2,434,180			1,064,224			(375	)		3,498,029		H	Trade accounts and other payables
Other payables		1,020,270			(1,020,270	)		—			—		H
Short-term borrowings		5,286,026			4,611,537			9,192			9,906,755		I	Short-term and current portion of long-term debt
Current portion of long-term debt		4,574,045			(4,574,045	)		—			—		I
Accrued expenses		2,926,052			(1,689,158	)		19,901			1,256,794		J	Accrued expenses
		—			546,378			(7,637	)		538,740		D,K	Other financial liabilities
Income taxes payable		218,117			—			(5,841	)		212,276			Income taxes payable
		—			1,553,816			(846	)		1,552,970		J	Liabilities for quality assurance
Other current liabilities		1,443,687			(252,101	)		(14,942	)		1,176,645		D,K	Other current liabilities
Total current liabilities		17,902,377			240,382			(549	)		18,142,209			Total current liabilities
Long-term liabilities														Non-current liabilities
Long-term debt		10,692,898			739,633			1,688			11,434,219		L,M	Long-term debt
		—			360,588			—			360,588		D	Other financial liabilities
Accrued pension and severance costs		978,626			41,356			2,179			1,022,161			Retirement benefit liabilities
Deferred income taxes		1,043,169			1,487			153,349			1,198,005		f	Deferred tax liabilities
Other long-term liabilities		821,515			(345,816	)		471			476,169		M	Other non-current liabilities
Total long-term liabilities		13,536,208			797,247			157,687			14,491,142			Total non-current liabilities
Total liabilities		31,438,585			1,037,629			157,138			32,633,351			Total liabilities
Mezzanine equity		504,169			(504,169	)		—			—		L
Shareholders’ equity														Shareholders’ equity
Toyota Motor Corporation shareholders’ equity
Common stock, no par value		397,050			—			—			397,050			Common stock
Additional paid-in capital		489,334			—			—			489,334			Additional paid-in capital
Retained earnings		23,427,613			—			(1,193,552	)		22,234,061		j	Retained earnings
Accumulated other comprehensive income (loss)		(1,166,273	)		—			1,751,822			585,549		b,g,h	Other components of equity
Treasury stock, at cost		(3,087,106	)		—			—			(3,087,106	)		Treasury stock
Total Toyota Motor Corporation shareholders’ equity		20,060,618			—			558,270			20,618,888			Total Toyota Motor Corporation Shareholders’ equity
Noncontrolling interests		677,064			—			43,060			720,124			Non-controlling interests
Total shareholders’ equity		20,737,682			—			601,330			21,339,012			Total shareholders’ equity
Total mezzanine equity and shareholders’ equity		21,241,851			(504,169	)		601,330			21,339,012
Commitments and contingencies
Total liabilities, mezzanine equity and shareholders’ equity		52,680,436			533,460			758,468			53,972,363			Total liabilities and shareholders’ equity

—18—

TOYOTA MOTOR CORPORATION    FY2021 Second Quarter Financial Summary

Reconciliation of net profit or loss for the first half ended September 30 (from April 1, 2019 to September 30, 2019)
	Yen in millions
Presentation under U.S. GAAP	U.S. GAAP			Reclassification			Adjustment of recognition and measurement			IFRS			Notes	Presentation under IFRS
Net revenues														Sales revenues
Sales of products		14,206,661			—			70,495			14,277,156		i	Sales of products
Financing operations		1,078,934			—			2,187			1,081,121			Financial services
Total net revenues		15,285,595			—			72,682			15,358,277			Total sales revenues
Costs and expenses														Costs and expenses
Cost of products sold		11,840,365			(7,082	)		68,076			11,901,359		i	Cost of products sold
Cost of financing operations		654,126			—			(928	)		653,198			Cost of financial services
Selling, general and administrative		1,386,768			(2,065	)		19,798			1,404,502			Selling, general and administrative
Total costs and expenses		13,881,259			(9,146	)		86,946			13,959,059			Total costs and expenses
Operating income		1,404,336			9,146			(14,264	)		1,399,218			Operating income
Other income (expense)
		—			205,952			(6,086	)		199,866			Share of profit (loss) of investments accounted for using the equity method
Interest and dividend income		126,221			14,653			830			141,703			Other finance income
Interest expense		(14,846	)		(1,377	)		(6,326	)		(22,549	)		Other finance costs
Foreign exchange gain (loss), net		(61,167	)		—			(22,145	)		(83,312	)		Foreign exchange gain (loss), net
Unrealized gains (losses) on equity securities		145,427			—			(145,427	)		—		b
Other income (loss), net		(16,486	)		(22,422	)		25,801			(13,107	)		Other income (loss), net
Income before income taxes and equity in earnings of affiliated companies		1,583,485			205,952			(167,617	)		1,621,819			Income before income taxes
Provision for income taxes		474,648			—			(36,821	)		437,827		b	Income tax expense
Equity in earnings of affiliated companies		205,952			(205,952	)		—			—
Net income		1,314,789			—			(130,796	)		1,183,993			Net income
														Net income attributable to
Net income attributable to Toyota Motor Corporation		1,274,976			—			(125,436	)		1,149,540			Toyota Motor Corporation
Net income attributable to noncontrolling interests		39,813			—			(5,360	)		34,453			Non-controlling interests
		1,314,789			—			(130,796	)		1,183,993			Net income

—19—

TOYOTA MOTOR CORPORATION    FY2021 Second Quarter Financial Summary

Reconciliation of other comprehensive income for the first half ended September 30 (from April 1, 2019 to September 30, 2019)
	Yen in millions
Presentation under U.S. GAAP	U.S. GAAP			Reclassification			Adjustment of recognition and measurement			IFRS			Notes	Presentation under IFRS
Net income		1,314,789			—			(130,796	)		1,183,993			Net income
Other comprehensive income (loss), net of tax														Other comprehensive income, net of tax
														Items that will not be reclassified to profit (loss)
Unrealized gains (losses) on securities		65,567			(65,567	)		101,311			101,311		b	Net changes in revaluation of financial assets measured at fair value through other comprehensive income
Pension liability adjustments		1,200			(362	)		(5,911	)		(5,074	)		Remeasurements of defined benefit plans
		—			362			41,493			41,855			Shares of other comprehensive income of equity method investees
		66,767			(65,567	)		136,893			138,093			Total of items that will not be reclassified to profit (loss)
														Items that may be reclassified subsequently to profit (loss)
Foreign currency translation adjustments		(251,656	)		(47,239	)		30,340			(268,554	)		Exchange differences on translating foreign operations
		—			65,567			(960	)		64,608			Net changes in revaluation of financial assets measured at fair value through other comprehensive income
		—			47,239			(95,692	)		(48,453	)		Shares of other comprehensive income of equity method investees
		(251,656	)		65,567			(66,312	)		(252,400	)		Total of items that may be reclassified subsequently to profit (loss)
Total other comprehensive income (loss)		(184,889	)		—			70,582			(114,307	)		Total other comprehensive income, net of tax
Comprehensive income		1,129,900			—			(60,214	)		1,069,686			Comprehensive income
														Comprehensive income for the period attributable to
Comprehensive income attributable to Toyota Motor Corporation		1,092,198			—			(51,015	)		1,041,184			Toyota Motor Corporation
Comprehensive income attributable to noncontrolling interests		37,702			—			(9,200	)		28,502			Non-controlling interests
		1,129,900			—			(60,214	)		1,069,686			Comprehensive income

—20—

TOYOTA MOTOR CORPORATION    FY2021 Second Quarter Financial Summary

Reconciliation of net profit or loss for the second quarter ended September 30 (from July 1, 2019 to September 30, 2019)
	Yen in millions
Presentation under U.S. GAAP	U.S. GAAP			Reclassification			Adjustment of recognition and measurement			IFRS			Notes	Presentation under IFRS
Net revenues														Sales revenues
Sales of products		7,102,868			—			(3,276	)		7,099,592		i	Sales of products
Financing operations		536,636			—			776			537,412			Financial services
Total net revenues		7,639,504			—			(2,500	)		7,637,004			Total sales revenues
Costs and expenses														Costs and expenses
Cost of products sold		5,970,713			(3,437	)		6,344			5,973,620		i	Cost of products sold
Cost of financing operations		313,688			—			(1,896	)		311,792			Cost of financial services
Selling, general and administrative		692,718			(1,051	)		1,318			692,985			Selling, general and administrative
Total costs and expenses		6,977,119			(4,487	)		5,766			6,978,397			Total costs and expenses
Operating income		662,385			4,487			(8,265	)		658,607			Operating income
Other income (expense)
		—			96,399			(1,277	)		95,122			Share of profit (loss) of investments accounted for using the equity method
Interest and dividend income		51,830			12,294			29			64,152			Other finance income
Interest expense		(10,495	)		271			(2,483	)		(12,707	)		Other finance costs
Foreign exchange gain (loss), net		(3,159	)		—			(17,093	)		(20,252	)		Foreign exchange gain (loss), net
Unrealized gains (losses) on equity securities		54,656			—			(54,656	)		—		b
Other income (loss), net		(13,482	)		(17,052	)		16,447			(14,087	)		Other income (loss), net
Income before income taxes and equity in earnings of affiliated companies		741,735			96,399			(67,299	)		770,834			Income before income taxes
Provision for income taxes		225,019			—			(6,794	)		218,224		b	Income tax expense
Equity in earnings of affiliated companies		96,399			(96,399	)		—			—
Net income		613,115			—			(60,505	)		552,610			Net income
														Net income attributable to
Net income attributable to Toyota Motor Corporation		592,002			—			(61,593	)		530,409			Toyota Motor Corporation
Net income attributable to noncontrolling interests		21,113			—			1,088			22,201			Non-controlling interests
		613,115			—			(60,505	)		552,610			Net income

—21—

TOYOTA MOTOR CORPORATION    FY2021 Second Quarter Financial Summary

Reconciliation of other comprehensive income for the second quarter ended September 30 (from July 1, 2019 to September 30, 2019)
	Yen in millions
Presentation under U.S. GAAP	U.S. GAAP			Reclassification			Adjustment of recognition and measurement			IFRS			Notes	Presentation under IFRS
Net income		613,115			—			(60,505	)		552,610			Net income
Other comprehensive income (loss), net of tax														Other comprehensive income, net of tax
														Items that will not be reclassified to profit (loss)
Unrealized gains (losses) on securities		25,114			(25,114	)		38,594			38,594		b	Net changes in revaluation of financial assets measured at fair value through other comprehensive income
Pension liability adjustments		3,762			(455	)		(3,628	)		(321	)		Remeasurements of defined benefit plans
		—			455			(3,614	)		(3,159	)		Shares of other comprehensive income of equity method investees
		28,876			(25,114	)		31,352			35,113			Total of items that will not be reclassified to profit (loss)
														Items that may be reclassified subsequently to profit (loss)
Foreign currency translation adjustments		(108,650	)		(111,958	)		123,208			(97,399	)		Exchange differences on translating foreign operations
		—			25,114			(395	)		24,720			Net changes in revaluation of financial assets measured at fair value through other comprehensive income
		—			111,958			(149,312	)		(37,355	)		Shares of other comprehensive income of equity method investees
		(108,650	)		25,114			(26,499	)		(110,034	)		Total of items that may be reclassified subsequently to profit (loss)
Total other comprehensive income (loss)		(79,774	)		—			4,853			(74,921	)		Total other comprehensive income, net of tax
Comprehensive income		533,341			—			(55,652	)		477,690			Comprehensive income
														Comprehensive income for the period attributable to
Comprehensive income attributable to Toyota Motor Corporation		515,063			—			(56,429	)		458,635			Toyota Motor Corporation
Comprehensive income attributable to noncontrolling interests		18,278			—			776			19,055			Non-controlling interests
		533,341			—			(55,652	)		477,690			Comprehensive income

—22—

TOYOTA MOTOR CORPORATION    FY2021 Second Quarter Financial Summary

Reconciliation of net profit or loss for prior period (from April 1, 2019 to March 31, 2020)
	Yen in millions
Presentation under U.S. GAAP	U.S. GAAP			Reclassification			Adjustment of recognition and measurement			IFRS			Notes	Presentation under IFRS
Net revenues														Sales revenues
Sales of products		27,759,749			—			(66,056	)		27,693,693		i	Sales of products
Financing operations		2,170,243			—			2,611			2,172,854			Financial services
Total net revenues		29,929,992			—			(63,445	)		29,866,547			Total sales revenues
Costs and expenses														Costs and expenses
Cost of products sold		23,142,744			(12,761	)		(26,387	)		23,103,596		i	Cost of products sold
Cost of financing operations		1,379,620			—			2,134			1,381,755			Cost of financial services
Selling, general and administrative		2,964,759			(3,391	)		20,597			2,981,965			Selling, general and administrative
Total costs and expenses		27,487,123			(16,153	)		(3,655	)		27,467,315			Total costs and expenses
Operating income		2,442,869			16,153			(59,790	)		2,399,232			Operating income
Other income (expense)
		—			271,153			39,094			310,247			Share of profit (loss) of investments accounted for using the equity method
Interest and dividend income		232,870			77,241			(4,266	)		305,846			Other finance income
Interest expense		(32,217	)		(2,573	)		(12,365	)		(47,155	)		Other finance costs
Foreign exchange gain (loss), net		(79,020	)		—			(15,599	)		(94,619	)		Foreign exchange gain(loss), net
Unrealized gains (losses) on equity securities		(24,600	)		—			24,600			—		b
Other income (loss), net		14,705			(90,821	)		(4,491	)		(80,607	)		Other income (loss), net
Income before income taxes and equity in earnings of affiliated companies		2,554,607			271,152			(32,817	)		2,792,942			Income before income taxes
Provision for income taxes		683,430			—			(1,613	)		681,817		b	Income tax expense
Equity in earnings of affiliated companies		271,152			(271,152	)		—			—
Net income		2,142,329			—			(31,204	)		2,111,125			Net income
														Net income attributable to
Net income attributable to Toyota Motor Corporation		2,076,183			—			(40,043	)		2,036,140			Toyota Motor Corporation
Net income attributable to noncontrolling interests		66,146			—			8,839			74,985			Non-controlling interests
		2,142,329			—			(31,204	)		2,111,125			Net income

—23—

TOYOTA MOTOR CORPORATION    FY2021 Second Quarter Financial Summary

Reconciliation of other comprehensive income during prior period (from April 1, 2019 to March 31, 2020)
	Yen in millions
Presentation under U.S. GAAP	U.S. GAAP			Reclassification			Adjustment of recognition and measurement			IFRS			Notes	Presentation under IFRS
Net income		2,142,329			—			(31,204	)		2,111,125			Net income
Other comprehensive income (loss), net of tax														Other comprehensive income, net of tax
														Items that will not be reclassified to profit (loss)
Unrealized gains (losses) on securities		118,363			(118,363	)		(243,853	)		(243,853	)	b	Net changes in revaluation of financial assets measured at fair value through other comprehensive income
Pension liability adjustments		(60,196	)		(612	)		17,409			(43,399	)		Remeasurements of defined benefit plans
		—			612			61,956			62,568			Shares of other comprehensive income of equity method investees
		58,167			(118,363	)		(164,488	)		(224,684	)		Total of items that will not be reclassified to profit (loss)
														Items that may be reclassified subsequently to profit (loss)
Foreign currency translation adjustments		(333,854	)		89,371			(117,614	)		(362,098	)		Exchange differences on translating foreign operations
		—			118,363			(4,973	)		113,390			Net changes in revaluation of financial assets measured at fair value through other comprehensive income
		—			(89,371	)		54,118			(35,253	)		Shares of other comprehensive income of equity method investees
		(333,854	)		118,363			(68,469	)		(283,961	)		Total of items that may be reclassified subsequently to profit (loss)
Total other comprehensive income (loss)		(275,687	)		—			(232,958	)		(508,645	)		Total other comprehensive income, net of tax
Comprehensive income		1,866,642			—			(264,162	)		1,602,480			Comprehensive income
														Comprehensive income for the period attributable to
Comprehensive income attributable to Toyota Motor Corporation		1,820,764			—			(265,756	)		1,555,009			Toyota Motor Corporation
Comprehensive income attributable to noncontrolling interests		45,878			—			1,594			47,472			Non-controlling interests
		1,866,642			—			(264,162	)		1,602,480			Comprehensive income

—24—

TOYOTA MOTOR CORPORATION    FY2021 Second Quarter Financial Summary

Notes to reconciliation

Changes in presentation -

A. Other receivables separately presented under U.S. GAAP have been reclassified into trade accounts and other receivables under IFRS.

B. Marketable securities separately presented under U.S. GAAP have been reclassified into other financial assets in current assets under IFRS.

C. Other financial assets included in prepaid expenses and other current assets under U.S. GAAP are separately presented under IFRS.

D. Derivative assets and liabilities that meet certain requirements are offset under U.S. GAAP. Under IFRS they are presented in gross amount.

E. Income tax receivable included in prepaid expenses and others current assets under U.S. GAAP are separately presented under IFRS.

F. Employees receivables separately presented under U.S. GAAP have been reclassified into other financial assets in non-current assets under IFRS.

G. Right of use assets, intangible assets, deferred tax assets and other financial assets in non-current assets included in other in investment and other assets under U.S. GAAP are separately presented under IFRS.

H. Other payables separately presented under U.S. GAAP have been reclassified into trade accounts and other payables under IFRS.

I. Current portion of long-term debt separately presented under U.S. GAAP have been reclassified into short-term and current portion of long-term debt under IFRS.

J. Liabilities for quality assurance included in accrued expenses under U.S. GAAP are separately presented under IFRS.

K. Other financial liabilities included in other current liabilities under U.S. GAAP are separately presented under IFRS.

L. Model AA Class Shares presented as mezzanine equity under U.S. GAAP have been reclassified into long-term debt under IFRS.

M. Lease liabilities included in other long-term liabilities under U.S. GAAP have been reclassified into long-term debt under IFRS.

—25—

TOYOTA MOTOR CORPORATION    FY2021 Second Quarter Financial Summary

Difference in recognition and measurement -

For the following reconciliation, the related allocation to the non-controlling interests is recorded.

a. Inventory valuation method

Under U.S. GAAP, inventories of some subsidiaries are calculated using the last-in, first-out method, but under IFRS, they are calculated using the weighted-average method.

b. Fair value measurement of equity financial assets

Unlisted stocks are recorded at acquisition cost under U.S. GAAP but are measured at fair value through other comprehensive income under IFRS. For equity financial assets, U.S. GAAP recognizes valuation gains and losses, gains and losses on sales and impairment as profit or loss, but under IFRS, changes in fair value are recognized as other comprehensive income.

c. Deemed cost

In accordance with IFRS 1, Toyota has elected to use fair value at the date of transition as deemed cost for certain items of property, plant and equipment. The carrying amount of property, plant and equipment under U.S. GAAP to which the exemption is applied is 59,456 million yen and the fair value is 21,225 million yen.

d. Recognition of right of use assets and lease liabilities

Under IFRS, newly recognized right of use assets and lease liabilities are recorded as a result of the adoption of IFRS 16 “Leases”.

e. Capitalization of costs incurred for development of products

Under U.S. GAAP, development expense is expensed as incurred. Under IFRS, costs incurred for development of products is capitalized if it meets the capitalization requirements.

—26—

TOYOTA MOTOR CORPORATION    FY2021 Second Quarter Financial Summary

f. Deferred income taxes

Deferred income taxes have been adjusted due to the other adjustments from U.S. GAAP to IFRS. The adjustment mainly related to 188,837 million yen (as of April 1, 2019), 188,223 million yen (as of September 30, 2019), and 193,271 million yen (as of March 31, 2020) of the capitalization of development costs.

g. Exchange differences on translating foreign operations

In accordance with the first-time exemption, the cumulative translation differences of foreign operations as of the Transition Date are transferred from other components of equity to retained earnings.

h. Retirement benefit obligations for defined benefit plans

Under U.S. GAAP, actuarial gains and losses and past service cost are recognized in other comprehensive income when they are incurred and amortized over a certain period of future years. Under IFRS, remeasurements arising from defined benefit plans, including actuarial gains and losses are recognized in other comprehensive income and reclassified directly from other components of equity to retained earnings when they are incurred. Past service cost is recognized in profit or loss when incurred.

i. Unification of a reporting period

For certain consolidated subsidiaries and companies accounted for by the equity method that have closing dates different from Toyota, the reporting period has been unified to Toyota’s closing date on the Transition Date.

j. Reconciliation of retained earnings

	Yen in millions
	Transition Date (April 1, 2019)			Second quarter (September 30, 2019)			Prior fiscal  year (March 31, 2020)
b. Fair value measurement of equity instruments		(990,815	)		(1,152,830	)		(799,568	)
g. Exchange differences on translating foreign operations		(649,532	)		(649,532	)		(649,532	)
h. Retirement benefit obligations for defined benefit plans		(265,867	)		(264,914	)		(324,014	)
Subtotal		(1,906,213	)		(2,067,276	)		(1,773,114	)
e. Capitalization of cost incurred for development of product		410,531			420,914			432,202
i. Unification of a reporting period		85,211			93,563			51,480
Others		36,732			60,958			95,880
Total		(1,373,738	)		(1,491,841	)		(1,193,552	)

Subtotal represents reclassification from other components of equity.

—27—

TOYOTA MOTOR CORPORATION    FY2021 Second Quarter Financial Summary

Adjustments on the Cash Flows

Additions, collections and sales of receivables from financial services which were classified as cash flows from investing activities under U.S. GAAP are classified as cash flows from operating activities under IFRS.

—28—

Supplemental Material for Financial Results for FY2021 Second Quarter (Consolidated)

< IFRS >

	FY2020												FY2021									FY2021
	1Q (2019/4-6)			2Q (2019/7-9)			First Half 6 months (2019/4-9)			12 months (‘19/4-‘20/3)			1Q (2020/4-6)			2Q (2020/7-9)			First Half 6 months (2020/4-9)			Forecast 12 months (‘20/4-‘21/3)
Vehicle Production (thousands of units)		2,311			2,236			4,547			8,820			1,080			1,990			3,070
(Japan) –including Daihatsu & Hino		1,134			1,122			2,256			4,413			679			1,031			1,709
[Daihatsu & Hino]		[265	]		[275	]		[540	]		[1,109	]		[178	]		[269	]		[447	]
(Overseas) –including Daihatsu & Hino		1,178			1,114			2,291			4,406			401			959			1,360
[Daihatsu & Hino]		[124	]		[155	]		[280	]		[545	]		[15	]		[53	]		[68	]
North America		499			456			955			1,807			187			500			687
Europe		174			143			317			674			82			138			220
Asia		386			413			799			1,522			109			230			339
Central and South America		86			69			156			293			10			67			78
Africa		33			32			65			110			13			24			37
Vehicle Sales (thousands of units)		2,318			2,340			4,657			8,955			1,158			1,928			3,086			7,500
(Japan) –including Daihatsu & Hino		555			585			1,140			2,240			385			536			921			2,040
[Daihatsu & Hino]		[158	]		[183	]		[341	]		[657	]		[104	]		[159	]		[263	]		[600	]
(Overseas) –including Daihatsu & Hino		1,762			1,755			3,517			6,715			774			1,392			2,165			5,460
[Daihatsu & Hino]		[65	]		[76	]		[141	]		[285	]		[16	]		[31	]		[47	]		[150	]
North America		744			702			1,446			2,713			285			646			930			2,330
Europe		279			251			530			1,029			141			254			395			930
Asia		410			436			846			1,600			182			274			456			1,190
Central and South America		104			109			212			403			30			66			97			260
Oceania		66			64			130			262			48			51			100			250
Africa		54			63			117			207			24			39			63			170
Middle East		106			128			234			493			62			60			122			330
Other		2			2			3			7			2			2			3
Total Retail Unit Sales (thousands of units) [Toyota, Daihatsu and Hino]		2,709			2,745			5,454			10,457			1,848			2,519			4,366			9,420

Supplemental 1

Supplemental Material for Financial Results for FY2021 Second Quarter (Consolidated)

< IFRS >

	FY2020												FY2021									FY2021
	1Q (2019/4-6)			2Q (2019/7-9)			First Half 6 months (2019/4-9)			12 months (‘19/4-‘20/3)			1Q (2020/4-6)			2Q (2020/7-9)			First Half 6 months (2020/4-9)			Forecast 12 months (‘20/4-‘21/3)
Foreign Exchange Rates
Yen to US Dollar Rate		110			107			109			109			108			106			107			as premise:106
Yen to Euro Rate		123			119			121			121			119			124			121			as premise:121
Number of Employees		379,201			376,762			376,762			361,907			369,701			369,604			369,604	(Note 1)
Sales Revenues (billions of yen)		7,721.2			7,637.0			15,358.2			29,866.5			4,600.7			6,774.4			11,375.2			26,000.0
Geographic Information
Japan		4,175.0			4,246.5			8,421.6			16,441.8			2,675.6			3,687.7			6,363.4
North America		2,838.0			2,684.1			5,522.1			10,642.0			1,381.1			2,564.8			3,945.9
Europe		883.2			813.4			1,696.6			3,355.3			471.4			810.5			1,282.0
Asia		1,361.9			1,398.9			2,760.8			5,293.2			906.5			1,149.2			2,055.7
Other		553.8			521.6			1,075.5			2,114.1			281.2			419.1			700.3
Elimination		-2,090.8			-2,027.7			-4,118.6			-7,980.0			-1,115.2			-1,857.0			-2,972.3
Business Segment
Automotive		6,954.5			6,805.4			13,759.9			26,799.7			3,976.4			6,146.2			10,122.6
Financial Services		549.1			542.2			1,091.3			2,193.1			534.9			531.5			1,066.5
All Other		370.0			454.2			824.2			1,504.9			206.0			234.0			440.1
Elimination		-152.4			-164.8			-317.3			-631.2			-116.7			-137.4			-254.1
Operating Income (billions of yen)		740.6			658.6			1,399.2			2,399.2			13.9			506.0			519.9			1,300.0
(Operating Income Ratio) (%)		(9.6	)		(8.6	)		(9.1	)		(8.0	)		(0.3	)		(7.5	)		(4.6	)		(5.0	)
Geographic Information
Japan		429.9			396.8			826.7			1,585.2			77.4			164.9			242.3
North America		112.6			116.4			229.0			253.2			-68.5			187.3			118.7
Europe		38.6			35.0			73.7			143.8			-21.9			31.6			9.6
Asia		109.1			110.4			219.5			363.5			42.8			93.4			136.2
Other		21.1			24.7			45.9			84.0			-11.7			20.2			8.4
Elimination		29.0			-24.9			4.1			-30.6			-4.0			8.5			4.5
Business Segment
Automotive		617.8			490.4			1,108.2			2,013.1			-86.5			332.2			245.6
Financial Services		109.7			117.2			226.9			283.7			92.2			153.0			245.3
All Other		14.2			28.5			42.7			103.3			9.3			15.3			24.6
Elimination		-1.2			22.4			21.1			-0.9			-1.1			5.3			4.2
Share of Profit (Loss) of Investments Accounted for Using the Equity Method (billions of yen)		104.7			95.1			199.8			310.2			-12.5			88.9			76.3			240.0
Income before Income Taxes (billions of yen)		850.9			770.8			1,621.8			2,792.9			118.2			610.5			728.8			1,760.0
(Income before Income Taxes Ratio) (%)		(11.0	)		(10.1	)		(10.6	)		(9.4	)		(2.6	)		(9.0	)		(6.4	)		(6.8	)
Net Income Attributable to Toyota Motor Corporation (billions of yen)		619.1			530.4			1,149.5			2,036.1			158.8			470.5			629.3			1,420.0
(Net Income Ratio) (%)		(8.0	)		(6.9	)		(7.5	)		(6.8	)		(3.5	)		(6.9	)		(5.5	)		(5.5	)
Dividends
Common Shares
Cash Dividends (billions of yen)		—			278.9			278.9			610.8			—			293.5			293.5	(Note 2)
Cash Dividends per Share (yen)		—			100			100			220			—			105			105	*
Payout Ratio (%)		—			24.5			24.5			30.2			—			46.6			46.6
Model AA Class Shares
Cash Dividends (billions of yen)		—			6.2			6.2			12.4			—			5.9			5.9	(Note 2)
Cash Dividends per Share (yen)		—			132			132			264			—			132			132
Value of Shares Repurchased (billions of yen)[actual purchase]		54.2			245.7			299.9			499.9			—			—			—	(Note 3)
Value of Shares Repurchased (billions of yen)[shareholder return]		—			199.9			199.9			199.9			—			—			—	(Note 3) (Note 4)
Number of Outstanding Common Shares (thousands)		3,262,997			3,262,997			3,262,997			3,262,997			3,262,997			3,262,997			3,262,997
Number of Outstanding Model AA Class Shares (thousands)		47,100			47,100			47,100			47,100			47,100			47,100			47,100

Supplemental 2

Supplemental Material for Financial Results for FY2021 Second Quarter (Consolidated)

< IFRS >

	FY2020								FY2021							FY2021
	1Q (2019/4-6)		2Q (2019/7-9)		First Half 6 months (2019/4-9)		12 months (‘19/4-‘20/3)		1Q (2020/4-6)		2Q (2020/7-9)		First Half 6 months (2020/4-9)			Forecast 12 months (‘20/4-‘21/3)
R&D Expenses (billions of yen)		297.4		286.9		584.4		1,110.3		280.7		286.8		567.6			1,100.0	(Note 5)
Depreciation Expenses (billions of yen)		196.9		192.3		389.3		803.3		204.0		221.0		425.1			880.0	(Note 6)
Geographic Information
Japan		88.6		91.7		180.3		376.5		98.1		109.8		207.9
North America		54.0		44.2		98.2		212.4		59.0		60.6		119.7
Europe		13.2		12.6		25.9		52.5		14.1		15.1		29.2
Asia		32.4		35.7		68.2		129.4		25.9		28.6		54.5
Other		8.5		8.0		16.5		32.3		6.7		6.8		13.6
Capital Expenditures (billions of yen)		272.7		337.9		610.6		1,372.3		260.3		325.2		585.6			1,400.0	(Note 6)
Geographic Information
Japan		144.8		183.4		328.3		747.2		147.1		160.0		307.2
North America		69.8		73.6		143.4		341.2		54.8		107.1		162.0
Europe		19.5		18.0		37.5		103.3		14.8		15.9		30.8
Asia		23.0		44.5		67.5		123.0		35.2		33.0		68.3
Other		15.4		18.3		33.7		57.4		8.3		8.9		17.2
Total Liquid Assets (billions of yen)		9,197.1		9,260.2		9,260.2		8,602.6		9,451.8		10,238.7		10,238.7	(Note 7)
Total Assets (billions of yen)		53,288.7		53,350.5		53,350.5		53,972.3		55,916.5		56,483.8		56,483.8
Toyota Motor Corporation Shareholders’ Equity (billions of yen)		20,096.3		20,312.2		20,312.2		20,618.8		20,713.9		21,010.8		21,010.8
Return on Equity (%)		12.4		10.5		11.4		10.0		3.1		9.0		6.0
Return on Asset (%)		4.6		4.0		4.3		3.8		1.2		3.3		2.3
Number of Consolidated Subsidiaries (including Structured Entities)								537
Number of Associates and Joint Ventures Accounted for Using the Equity Method								199

Analysis of Consolidated Net Income Attributable to Toyota Motor Corporation for FY2021 (billions of yen, approximately)	2Q (2020/7-9)		First Half 6 months (2020/4-9)
Effects of Marketing Activities		-160.0		-970.0
Effects of Changes in Exchange Rates		-45.0		-120.0
Cost Reduction Efforts		40.0		50.0
From Engineering		30.0		35.0
From Manufacturing and Logistics		10.0		15.0
Increase or Decrease in Expenses and Expense Reduction Efforts		40.0		115.0
Other		-27.5		45.8
(Changes in Operating Income)		-152.5		-879.2
Non-operating Income		-7.7		-13.7
Share of Profit (Loss) of Investments Accounted for Using the Equity Method		-6.1		-123.4
Income tax expense, Net Income Attributable to Non-controlling Interests		100.3		372.8
(Changes in Net Income Attributable to Toyota Motor Corporation)		-59.8		-520.1

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, but are not limited to: (i) changes in economic conditions, market demand, and the competitive environment affecting the automotive markets in Japan, North America, Europe, Asia and other markets in which Toyota operates; (ii) fluctuations in currency exchange rates, particularly with respect to the value of the Japanese yen, the U.S. dollar, the euro, the Australian dollar, the Russian ruble, the Canadian dollar and the British pound, fluctuations in stock prices, and interest rates fluctuations; (iii) changes in funding environment in financial markets and increased competition in the financial services industry; (iv) Toyota’s ability to market and distribute effectively; (v) Toyota’s ability to realize production efficiencies and to implement capital expenditures at the levels and times planned by management; (vi) changes in the laws, regulations and government policies in the markets in which Toyota operates that affect Toyota’s automotive operations, particularly laws, regulations and government policies relating to vehicle safety including remedial measures such as recalls, trade, environmental protection, vehicle emissions and vehicle fuel economy, as well as changes in laws, regulations and government policies that affect Toyota’s other operations, including the outcome of current and future litigation and other legal proceedings, government proceedings and investigations; (vii) political and economic instability in the markets in which Toyota operates; (viii) Toyota’s ability to timely develop and achieve market acceptance of new products that meet customer demand; (ix) any damage to Toyota’s brand image; (x) Toyota’s reliance on various suppliers for the provision of supplies; (xi) increases in prices of raw materials; (xii) Toyota’s reliance on various digital and information technologies; (xiii) fuel shortages or interruptions in electricity, transportation systems, labor strikes, work stoppages or other interruptions to, or difficulties in, the employment of labor in the major markets where Toyota purchases materials, components and supplies for the production of its products or where its products are produced, distributed or sold; and (xiv) the impact of natural calamities as well as the outbreak and spread of epidemics, including the negative effect on Toyota’s vehicle production and sales.

A discussion of these and other factors which may affect Toyota’s actual results, performance, achievements or financial position is contained in Toyota’s annual report on Form 20-F, which is on file with the United States Securities and Exchange Commission.

The global spread of COVID-19 and the responses to it by governments and other stakeholders have adversely affected Toyota in a number of ways. For reasons such as government directives as well as anticipated reduced demand for its vehicles, Toyota has temporarily suspended, or intends to temporarily suspend, production of automobiles and components at selected plants in Japan and overseas. COVID-19 has also affected, and is expected to continue to affect, the businesses of Toyota dealers and distributors, as well as certain of Toyota’s third-party suppliers and business partners. In addition, the global spread of COVID-19 and related matters have adversely affected businesses in a wide variety of industries, as well as consumers, all of which negatively impacted demand for Toyota’s vehicles and related financial services.

The duration of the global spread of COVID-19 and the resulting future effects are uncertain, and the foregoing impacts and other effects not referenced above, as well as the ultimate impact of COVID-19, are difficult to predict and could have an adverse effect on Toyota’s financial condition and results of operations.

* Breakdown of Annual cash dividends per common share at end of second quarter: Special Dividends 5 yen

(Note 1) Shows the number of employees as of the end of each period (excluding loan employees from Toyota to outside Toyota and including loan employees from outside Toyota to Toyota)

(Note 2) 2Q= Interim Dividend, 4Q= Year-end Dividend, FY= Annual Dividend

(Note 3) Value of common shares repurchased (excluding shares constituting less than one unit that were purchased upon request). This does not include the commission fees incurred for the repurchase

(Note 4) Value of common shares repurchased (shareholder return on Net Income for the period)

(Note 5) Figures for R&D expenses are R&D activity related expenditures incurred during the reporting period and do not conform to “R&D Expenses” on Toyota’s Consolidated Statement of Income

(Note 6) Figures for depreciation expenses and capital expenditures do not include vehicles in operating lease or right of use assets

(Note 7) Cash and cash equivalents, time deposits, public and corporate bonds and its investment in monetary trust funds, excluding in each case those relating to financial services

Supplemental 3