Toyota Motor (TM) 6-K FY2021 Third Quarter

FINANCIAL SUMMARY  

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

FY2021 Third Quarter

(April 1, 2020 through December 31, 2020)

English translation from the original Japanese-language document

TOYOTA MOTOR CORPORATION

FY2021 Third 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

February 10, 2021

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	:	February 12, 2021
Payment date of cash dividends	:	—
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 nine months (April 1, 2020 through December 31, 2020)

(1) Consolidated financial results (For the nine months ended December 31)

	(% of change from previous first nine months)
	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 nine months		19,525,255		-15.0		1,507,922		-26.1		1,869,989		-21.9		1,498,697		-15.3		1,468,064		-14.1		1,661,238		-16.0
FY2020 first nine months		22,967,208		—		2,039,315		—		2,393,760		—		1,770,185		—		1,708,838		—		1,976,583		—

	Net income attributable to Toyota Motor Corporation –  Basic		Net income attributable to Toyota Motor Corporation –  Diluted
	Yen		Yen
FY2021 first nine months		525.23		520.04
FY2020 first nine months		608.73		602.17

(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 third quarter		58,010,315		22,633,078		21,804,119		37.6
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	26,500,000		-11.3	2,000,000		-16.6	2,550,000		-8.7	1,900,000		-6.7	679.71

(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 third quarter 3,262,997,492 shares, FY2020    3,262,997,492 shares

(ii) Number of treasury stock at the end of each period: FY2021 third quarter 467,042,131 shares,

FY2020    496,844,960 shares

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

FY2021 first nine months 2,795,071,026 shares, FY2020 first nine months 2,807,226,955 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 nine months ended December 31, 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 Third 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 Third Quarter

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TOYOTA MOTOR CORPORATION    FY2021 Third 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			December 31, 2020
Assets
Current assets
Cash and cash equivalents		3,602,805			4,098,450			4,479,992
Trade accounts and other receivables		2,954,617			2,648,360			2,847,322
Receivables related to financial services		6,657,367			6,621,604			6,500,567
Other financial assets		2,640,392			2,143,602			4,205,732
Inventories		2,731,040			2,533,892			2,619,909
Income tax receivable		84,574			237,609			294,464
Other current assets		507,654			679,804			728,805
Total current assets		19,178,450			18,963,320			21,676,792
Non-current assets
Investments accounted for using the equity method		3,467,242			4,297,564			3,923,054
Receivables related to financial services		10,281,028			10,417,797			11,527,467
Other financial assets		7,769,740			7,901,517			8,071,476
Property, plant and equipment
Land		1,359,271			1,318,964			1,341,262
Buildings		4,833,278			4,741,451			4,871,734
Machinery and equipment		11,956,773			11,979,449			12,315,986
Vehicles and equipment on operating leases		6,139,163			5,928,833			5,756,225
Construction in progress		656,067			517,460			630,262
Total property, plant and equipment, at cost		24,944,551			24,486,156			24,915,468
Less - Accumulated depreciation and impairment losses		(14,260,446	)		(13,952,141	)		(14,129,887	)
Total property, plant and equipment, net		10,684,105			10,534,016			10,785,581
Right of use assets		396,830			337,335			369,909
Intangible assets		908,737			1,000,257			1,057,967
Deferred tax assets		446,383			326,364			345,278
Other non-current assets		283,889			194,192			252,790
Total non-current assets		34,237,955			35,009,043			36,333,523
Total assets		53,416,405			53,972,363			58,010,315

—2—

TOYOTA MOTOR CORPORATION    FY2021 Third Quarter Financial Summary

	Yen in millions
	April 1, 2019			March 31, 2020			December 31, 2020
Liabilities
Current liabilities
Trade accounts and other payables		3,856,133			3,498,029			3,563,106
Short-term and current portion of long-term debt		9,701,813			9,906,755			12,031,321
Accrued expenses		1,350,252			1,256,794			1,214,649
Other financial liabilities		475,302			538,740			817,392
Income taxes payable		321,316			212,276			405,825
Liabilities for quality assurance		1,769,514			1,552,970			1,437,861
Other current liabilities		1,008,032			1,176,645			1,140,088
Total current liabilities		18,482,362			18,142,209			20,610,241
Non-current liabilities
Long-term debt		11,342,315			11,434,219			11,943,533
Other financial liabilities		189,957			360,588			331,459
Retirement benefit liabilities		1,002,710			1,022,161			1,056,051
Deferred tax liabilities		1,227,292			1,198,005			999,677
Other non-current liabilities		516,560			476,169			436,276
Total non-current liabilities		14,278,833			14,491,142			14,766,995
Total liabilities		32,761,195			32,633,351			35,377,237
Shareholders’ equity
Common stock		397,050			397,050			397,050
Additional paid-in capital		487,162			489,334			504,291
Retained earnings		20,613,776			22,234,061			23,102,819
Other components of equity		1,016,035			585,549			701,586
Treasury stock		(2,606,925	)		(3,087,106	)		(2,901,627	)
Total Toyota Motor Corporation shareholders’ equity		19,907,100			20,618,888			21,804,119
Non-controlling interests		748,110			720,124			828,959
Total shareholders’ equity		20,655,210			21,339,012			22,633,078
Total liabilities and shareholders’ equity		53,416,405			53,972,363			58,010,315

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TOYOTA MOTOR CORPORATION    FY2021 Third 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 nine months ended December 31, 2019			For the first nine months ended December 31, 2020
Sales revenues
Sales of products		21,338,170			17,922,573
Financial services		1,629,038			1,602,683
Total sales revenues		22,967,208			19,525,255
Costs and expenses
Cost of products sold		17,767,373			15,289,445
Cost of financial services		1,013,940			881,533
Selling, general and administrative		2,146,579			1,846,356
Total costs and expenses		20,927,893			18,017,334
Operating income		2,039,315			1,507,922
Share of profit (loss) of investments accounted for using the equity method		275,702			201,474
Other finance income		202,796			220,854
Other finance costs		(34,400	)		(33,096	)
Foreign exchange gain (loss), net		(56,986	)		(12,808	)
Other income (loss), net		(32,667	)		(14,356	)
Income before income taxes		2,393,760			1,869,989
Income tax expense		623,575			371,292
Net income		1,770,185			1,498,697
Net income attributable to
Toyota Motor Corporation		1,708,838			1,468,064
Non-controlling interests		61,347			30,633
Net income		1,770,185			1,498,697
	Yen
Earnings per share attributable to Toyota Motor Corporation
Basic		608.73			525.23
Diluted		602.17			520.04

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TOYOTA MOTOR CORPORATION    FY2021 Third Quarter Financial Summary

Condensed Quarterly Consolidated Statement of Comprehensive Income

	Yen in millions
	For the first nine months ended December 31, 2019			For the first nine months ended December 31, 2020
Net income		1,770,185			1,498,697
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		291,348			192,880
Remeasurements of defined benefit plans		(9,554	)		(2,381	)
Share of other comprehensive income of equity method investees		51,514			(2,739	)
Total of items that will not be reclassified to profit (loss)		333,308			187,760
Items that may be reclassified subsequently to profit (loss)
Exchange differences on translating foreign operations		(99,836	)		27,415
Net changes in revaluation of financial assets measured at fair value through other comprehensive income		27,583			(28,450	)
Share of other comprehensive income of equity method investees		(54,657	)		(24,184	)
Total of items that may be reclassified subsequently to profit (loss)		(126,910	)		(25,219	)
Total other comprehensive income, net of tax		206,398			162,541
Comprehensive income		1,976,583			1,661,238
Comprehensive income for the period attributable to
Toyota Motor Corporation		1,910,336			1,610,308
Non-controlling interests		66,247			50,929
Comprehensive income		1,976,583			1,661,238

—5—

TOYOTA MOTOR CORPORATION    FY2021 Third Quarter Financial Summary

Condensed Quarterly Consolidated Statement of Income
	Yen in millions
	For the third quarter ended December 31, 2019			For the third quarter ended December 31, 2020
Sales revenues
Sales of products		7,061,014			7,605,418
Financial services		547,917			544,615
Total sales revenues		7,608,931			8,150,032
Costs and expenses
Cost of products sold		5,866,014			6,211,206
Cost of financial services		360,742			282,124
Selling, general and administrative		742,078			668,762
Total costs and expenses		6,968,834			7,162,092
Operating income		640,097			987,941
Share of profit (loss) of investments accounted for using the equity method		75,836			125,084
Other finance income		61,093			52,879
Other finance costs		(11,851	)		(9,859	)
Foreign exchange gain (loss), net		26,326			(622	)
Other income (loss), net		(19,559	)		(14,249	)
Income before income taxes		771,941			1,141,174
Income tax expense		185,748			273,666
Net income		586,193			867,508
Net income attributable to
Toyota Motor Corporation		559,298			838,696
Non-controlling interests		26,894			28,812
Net income		586,193			867,508
	Yen
Earnings per share attributable to Toyota Motor Corporation
Basic		200.79			299.97
Diluted		198.63			296.25

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TOYOTA MOTOR CORPORATION    FY2021 Third Quarter Financial Summary

Condensed Quarterly Consolidated Statement of Comprehensive Income
	Yen in millions
	For the third quarter ended December 31, 2019			For the third quarter ended December 31, 2020
Net income		586,193			867,508
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		190,037			202,914
Remeasurements of defined benefit plans		(4,480	)		(246	)
Share of other comprehensive income of equity method investees		9,659			39,114
Total of items that will not be reclassified to profit (loss)		195,216			241,782
Items that may be reclassified subsequently to profit (loss)
Exchange differences on translating foreign operations		168,718			16,627
Net changes in revaluation of financial assets measured at fair value through other comprehensive income		(37,025	)		(13,351	)
Share of other comprehensive income of equity method investees		(6,204	)		11,501
Total of items that may be reclassified subsequently to profit (loss)		125,489			14,777
Total other comprehensive income, net of tax		320,705			256,560
Comprehensive income		906,897			1,124,068
Comprehensive income for the period attributable to
Toyota Motor Corporation		869,151			1,087,116
Non-controlling interests		37,746			36,952
Comprehensive income		906,897			1,124,068

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TOYOTA MOTOR CORPORATION    FY2021 Third Quarter Financial Summary

3. Condensed Quarterly Consolidated Statement of Changes in Equity

For the first nine months ended December 31, 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		—		—			1,708,838			—			—			1,708,838			61,347			1,770,185
Other comprehensive income, net of tax		—		—			—			201,498			—			201,498			4,900			206,398
Total comprehensive income		—		—			1,708,838			201,498			—			1,910,336			66,247			1,976,583
Transactions with owners and other
Dividends paid		—		—			(618,801	)		—			—			(618,801	)		(54,716	)		(673,517	)
Repurchase of treasury stock		—		—			—			—			(370,329	)		(370,329	)		—			(370,329	)
Equity transactions and other		—		229			—			—			—			229			(3,654	)		(3,425	)
Total transactions with owners and other		—		229			(618,801	)		—			(370,329	)		(988,901	)		(58,370	)		(1,047,271	)
Reclassification to retained earnings		—		—			1,692			(1,692	)		—			—			—			—
Balances at December 31, 2019		397,050		487,392			21,705,505			1,215,840			(2,977,254	)		20,828,533			755,987			21,584,520
For the first nine months ended December 31, 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		—		—			1,468,064			—			—			1,468,064			30,633			1,498,697
Other comprehensive income, net of tax		—		—			—			142,244			—			142,244			20,297			162,541
Total comprehensive income		—		—			1,468,064			142,244			—			1,610,308			50,929			1,661,238
Transactions with owners and other
Dividends paid		—		—			(625,514	)		—			—			(625,514	)		(35,858	)		(661,372	)
Repurchase of treasury stock		—		—			—			—			(65	)		(65	)		—			(65	)
Reissuance of treasury stock		—		15,041			—			—			185,544			200,585			—			200,585
Change in scope of consolidation		—		—			—			—			—			—			75,260			75,260
Equity transactions and other		—		(83	)		—			—			—			(83	)		18,503			18,420
Total transactions with owners and other		—		14,958			(625,514	)		—			185,479			(425,077	)		57,906			(367,171	)
Reclassification to retained earnings		—		—			26,208			(26,208	)		—			—			—			—
Balances at December 31, 2020		397,050		504,291			23,102,819			701,586			(2,901,627	)		21,804,119			828,959			22,633,078

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TOYOTA MOTOR CORPORATION    FY2021 Third Quarter Financial Summary

4. Condensed Quarterly Consolidated Statement of Cash Flows

	Yen in millions
	For the first nine months ended December 31, 2019			For the first nine months ended December 31, 2020
Cash flows from operating activities
Net income		1,770,185			1,498,697
Depreciation and amortization		1,190,951			1,218,187
Interest income and interest costs related to financial services, net		(153,554	)		(179,525	)
Share of profit (loss) of investments accounted for using the equity method		(275,702	)		(201,474	)
Income tax expense		623,575			371,292
Changes in operating assets and liabilities, and other		(982,859	)		(891,402	)
Interest received		603,379			586,251
Dividends received		317,043			286,345
Interest paid		(369,929	)		(329,170	)
Income taxes paid, net of refunds		(718,593	)		(525,113	)
Net cash provided by (used in) operating activities		2,004,496			1,834,089
Cash flows from investing activities
Additions to fixed assets excluding equipment leased to others		(963,240	)		(953,430	)
Additions to equipment leased to others		(1,734,289	)		(1,596,399	)
Proceeds from sales of fixed assets excluding equipment leased to others		26,934			28,195
Proceeds from sales of equipment leased to others		1,064,857			1,000,085
Additions to intangible assets		(206,262	)		(200,780	)
Additions to public and corporate bonds and stocks		(1,182,554	)		(1,803,956	)
Proceeds from sales of public and corporate bonds and stocks and upon maturity of public and corporate bonds		1,616,283			1,712,421
Other, net		(347,084	)		(1,875,215	)
Net cash provided by (used in) investing activities		(1,725,356	)		(3,689,079	)
Cash flows from financing activities
Increase (decrease) in short-term debt		228,070			(762,114	)
Proceeds from long-term debt		4,115,284			7,230,747
Payments of long-term debt		(3,305,218	)		(3,811,132	)
Dividends paid to Toyota Motor Corporation common shareholders		(618,801	)		(625,514	)
Dividends paid to non-controlling interests		(54,716	)		(35,858	)
Reissuance (repurchase) of treasury stock		(370,329	)		199,937
Net cash provided by (used in) financing activities		(5,710	)		2,196,066
Effect of exchange rate changes on cash and cash equivalents		(28,499	)		40,466
Net increase (decrease) in cash and cash equivalents		244,931			381,542
Cash and cash equivalents at beginning of period		3,602,805			4,098,450
Cash and cash equivalents reclassified to assets held for sale		(49,010	)		—
Cash and cash equivalents at end of period		3,798,726			4,479,992

—9—

TOYOTA MOTOR CORPORATION    FY2021 Third Quarter Financial Summary

5. Going Concern Assumption

None

—10—

TOYOTA MOTOR CORPORATION    FY2021 Third 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 Third 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 Third 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 Third 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 Third Quarter Financial Summary

Reconciliation of equity as of the end of the third quarter (December 31, 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		3,759,240			—			39,485			3,798,726			Cash and cash equivalents
Trade accounts and notes receivable, less allowance for doubtful accounts		2,108,870			592,197			14,865			2,715,932		A	Trade accounts and other receivables
Other receivables		592,197			(592,197	)		—			—		A
Finance receivables, net		6,773,867			—			9,351			6,783,218			Receivables related to financial services
Time deposits		1,488,530			1,097,037			7,325			2,592,893		B,C,D	Other financial assets
Marketable securities		795,154			(795,154	)		—			—		B
Inventories		2,433,401			—			20,676			2,454,077		a	Inventories
		—			167,305			365			167,670		E	Income tax receivable
Prepaid expenses and other current assets		1,299,082			(43,120	)		9,285			1,265,247		C,D,E,N	Other current assets
Total current assets		19,250,341			426,069			101,352			19,777,762			Total current assets
														Non-current assets
Investments in affiliated companies		3,495,795			69,290			88,017			3,653,102			Investments accounted for using the equity method
Noncurrent finance receivables, net		10,896,215			—			(3,028	)		10,893,186			Receivables related to financial services
Marketable securities and other securities investments		7,651,412			229,302			47,304			7,928,018		D,F,G,b	Other financial assets
Employees receivables		23,497			(23,497	)		—			—		F
Property, plant and equipment														Property, plant and equipment
Land		1,317,567			242			(27,853	)		1,289,956		c	Land
Buildings		4,752,932			(5,600	)		40,396			4,787,728			Buildings
Machinery and equipment		12,127,185			(36,405	)		112,666			12,203,446			Machinery and equipment
Vehicles and equipment on operating leases		6,043,761			—			(1,324	)		6,042,437			Vehicles and equipment on operating leases
Construction in progress		523,349			60			13,394			536,803			Construction in progress
Total property, plant and equipment, at cost		24,764,794			(41,702	)		137,280			24,860,372			Total property, plant and equipment, at cost
Less - Accumulated depreciation		(14,058,592	)		859			(115,382	)		(14,173,115	)		Less - Accumulated depreciation and impairment losses
Total property, plant and equipment, net		10,706,202			(40,843	)		21,898			10,687,257			Total property, plant and equipment, net
		—			273,920			(764	)		273,155		G	Right of use assets
		—			332,974			617,913			950,887		G,e	Intangible assets
		—			455,502			(27,811	)		427,691		G,f	Deferred tax assets
Other		1,777,672			(1,470,124	)		2,863			310,411		G,N	Other non-current assets
		34,550,793			(173,476	)		746,392			35,123,708			Total non-current assets
Total assets		53,801,134			252,593			847,744			54,901,470			Total assets

—15—

TOYOTA MOTOR CORPORATION    FY2021 Third 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		2,301,240			1,093,618			43,884			3,438,743		H	Trade accounts and other payables
Other payables		1,044,419			(1,044,419	)		—			—		H
Short-term borrowings		5,484,398			4,522,766			(37,399	)		9,969,765		I	Short-term and current portion of long-term debt
Current portion of long-term debt		4,485,926			(4,485,926	)		—			—		I
Accrued expenses		2,927,810			(1,728,374	)		16,751			1,216,187		J	Accrued expenses
		—			571,515			(6,616	)		564,899		D,K	Other financial liabilities
Income taxes payable		212,278			—			544			212,822			Income taxes payable
		—			1,600,254			850			1,601,105		J	Liabilities for quality assurance
Other current liabilities		1,675,911			(204,469	)		1,677			1,473,118		D,K,N	Other current liabilities
Total current liabilities		18,131,982			324,967			19,691			18,476,639			Total current liabilities
Long-term liabilities														Non-current liabilities
Long-term debt		10,934,987			695,998			3,324			11,634,308		L,M	Long-term debt
		—			239,472			121			239,592		D	Other financial liabilities
Accrued pension and severance costs		971,702			37,806			19,680			1,029,188			Retirement benefit liabilities
Deferred income taxes		1,195,432			12,093			237,825			1,445,351		f	Deferred tax liabilities
Other long-term liabilities		1,035,377			(557,895	)		14,389			491,872		M,N	Other non-current liabilities
Total long-term liabilities		14,137,498			427,474			275,338			14,840,311			Total non-current liabilities
Total liabilities		32,269,480			752,441			295,029			33,316,950			Total liabilities
Mezzanine equity		499,848			(499,848	)		—			—		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		487,392			—			—			487,392			Additional paid-in capital
Retained earnings		23,368,761			—			(1,663,256	)		21,705,505		j	Retained earnings
Accumulated other comprehensive income (loss)		(970,426	)		—			2,186,266			1,215,840		b,g,h	Other components of equity
Treasury stock, at cost		(2,977,254	)		—			—			(2,977,254	)		Treasury stock
Total Toyota Motor Corporation shareholders’ equity		20,305,523			—			523,010			20,828,533			Total Toyota Motor Corporation shareholders’ equity
Noncontrolling interests		726,283			—			29,704			755,987			Non-controlling interests
Total shareholders’ equity		21,031,806			—			552,714			21,584,520			Total shareholders’ equity
Total mezzanine equity and shareholders’ equity		21,531,654			(499,848	)		552,714			21,584,520
Commitments and contingencies
Total liabilities, mezzanine equity and shareholders’ equity		53,801,134			252,593			847,744			54,901,470			Total liabilities and shareholders’ equity

—16—

TOYOTA MOTOR CORPORATION    FY2021 Third 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 Third 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 Third Quarter Financial Summary

Reconciliation of net profit or loss for the first nine months ended December 31 (from April 1, 2019 to December 31, 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		21,202,842			—			135,328			21,338,170		i	Sales of products
Financing operations		1,627,322			—			1,717			1,629,038			Financial services
Total net revenues		22,830,164			—			137,044			22,967,208			Total sales revenues
Costs and expenses														Costs and expenses
Cost of products sold		17,628,319			(9,132	)		148,186			17,767,373		i	Cost of products sold
Cost of financing operations		1,014,831			—			(890	)		1,013,940			Cost of financial services
Selling, general and administrative		2,128,231			(3,125	)		21,473			2,146,579			Selling, general and administrative
Total costs and expenses		20,771,381			(12,257	)		168,769			20,927,893			Total costs and expenses
Operating income		2,058,783			12,257			(31,724	)		2,039,315			Operating income
Other income (expense)
		—			303,422			(27,720	)		275,702			Share of profit (loss) of investments accounted for using the equity method
Interest and dividend income		192,831			20,387			(10,422	)		202,796			Other finance income
Interest expense		(18,315	)		(1,698	)		(14,387	)		(34,400	)		Other finance costs
Foreign exchange gain (loss), net		(42,295	)		—			(14,691	)		(56,986	)		Foreign exchange gain (loss), net
Unrealized gains (losses) on equity securities		360,457			—			(360,457	)		—		b
Other income (loss), net		(35,682	)		(30,946	)		33,962			(32,667	)		Other income (loss), net
Income before income taxes and equity in earnings of affiliated companies		2,515,779			303,422			(425,440	)		2,393,760			Income before income taxes
Provision for income taxes		740,549			—			(116,973	)		623,575		b	Income tax expense
Equity in earnings of affiliated companies		303,422			(303,422	)		—			—
Net income		2,078,652			—			(308,467	)		1,770,185			Net income
														Net income attributable to
Net income attributable to Toyota Motor Corporation		2,013,010			—			(304,172	)		1,708,838			Toyota Motor Corporation
Net income attributable to noncontrolling interests		65,642			—			(4,295	)		61,347			Non-controlling interests
		2,078,652			—			(308,467	)		1,770,185			Net income

—19—

TOYOTA MOTOR CORPORATION    FY2021 Third Quarter Financial Summary

Reconciliation of other comprehensive income for the first nine months ended December 31 (from April 1, 2019 to December 31, 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		2,078,652			—			(308,467	)		1,770,185			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		32,240			(32,240	)		291,348			291,348		b	Net changes in revaluation of financial assets measured at fair value through other comprehensive income
Pension liability adjustments		2,081			(647	)		(10,988	)		(9,554	)		Remeasurements of defined benefit plans
		—			647			50,867			51,514			Shares of other comprehensive income of equity method investees
		34,321			(32,240	)		331,227			333,308			Total of items that will not be reclassified to profit (loss)
														Items that may be reclassified subsequently to profit (loss)
Foreign currency translation adjustments		(87,969	)		108,484			(120,351	)		(99,836	)		Exchange differences on translating foreign operations
		—			32,240			(4,657	)		27,583			Net changes in revaluation of financial assets measured at fair value through other comprehensive income
		—			(108,484	)		53,826			(54,657	)		Shares of other comprehensive income of equity method investees
		(87,969	)		32,240			(71,182	)		(126,910	)		Total of items that may be reclassified subsequently to profit (loss)
Total other comprehensive income (loss)		(53,648	)		—			260,045			206,398			Total other comprehensive income, net of tax
Comprehensive income		2,025,004			—			(48,422	)		1,976,583			Comprehensive income
														Comprehensive income for the period attributable to
Comprehensive income attributable to Toyota Motor Corporation		1,959,234			—			(48,899	)		1,910,336			Toyota Motor Corporation
Comprehensive income attributable to noncontrolling interests		65,770			—			478			66,247			Non-controlling interests
		2,025,004			—			(48,422	)		1,976,583			Comprehensive income

—20—

TOYOTA MOTOR CORPORATION    FY2021 Third Quarter Financial Summary

Reconciliation of net profit or loss for the third quarter ended December 31 (from October 1, 2019 to December 31, 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		6,996,181			—			64,833			7,061,014		i	Sales of products
Financing operations		548,388			—			(470	)		547,917			Financial services
Total net revenues		7,544,569			—			64,362			7,608,931			Total sales revenues
Costs and expenses														Costs and expenses
Cost of products sold		5,787,954			(2,050	)		80,110			5,866,014		i	Cost of products sold
Cost of financing operations		360,705			—			38			360,742			Cost of financial services
Selling, general and administrative		741,463			(1,060	)		1,675			742,078			Selling, general and administrative
Total costs and expenses		6,890,122			(3,111	)		81,823			6,968,834			Total costs and expenses
Operating income		654,447			3,111			(17,460	)		640,097			Operating income
Other income (expense)
		—			97,470			(21,634	)		75,836			Share of profit (loss) of investments accounted for using the equity method
Interest and dividend income		66,610			5,734			(11,252	)		61,093			Other finance income
Interest expense		(3,469	)		(321	)		(8,061	)		(11,851	)		Other finance costs
Foreign exchange gain (loss), net		18,872			—			7,454			26,326			Foreign exchange gain (loss), net
Unrealized gains (losses) on equity securities		215,030			—			(215,030	)		—		b
Other income (loss), net		(19,196	)		(8,524	)		8,161			(19,559	)		Other income (loss), net
Income before income taxes and equity in earnings of affiliated companies		932,294			97,470			(257,823	)		771,941			Income before income taxes
Provision for income taxes		265,901			—			(80,152	)		185,748		b	Income tax expense
Equity in earnings of affiliated companies		97,470			(97,470	)		—			—
Net income		763,863			—			(177,671	)		586,193			Net income
														Net income attributable to
Net income attributable to Toyota Motor Corporation		738,034			—			(178,736	)		559,298			Toyota Motor Corporation
Net income attributable to noncontrolling interests		25,829			—			1,065			26,894			Non-controlling interests
		763,863			—			(177,671	)		586,193			Net income

—21—

TOYOTA MOTOR CORPORATION    FY2021 Third Quarter Financial Summary

Reconciliation of other comprehensive income for the third quarter ended December 31 (from October 1, 2019 to December 31, 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		763,863			—			(177,671	)		586,193			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		(33,327	)		33,327			190,037			190,037		b	Net changes in revaluation of financial assets measured at fair value through other comprehensive income
Pension liability adjustments		881			(285	)		(5,077	)		(4,480	)		Remeasurements of defined benefit plans
		—			285			9,374			9,659			Shares of other comprehensive income of equity method investees
		(32,446	)		33,327			194,334			195,216			Total of items that will not be reclassified to profit (loss)
														Items that may be reclassified subsequently to profit (loss)
Foreign currency translation adjustments		163,687			155,723			(150,691	)		168,718			Exchange differences on translating foreign operations
		—			(33,327	)		(3,697	)		(37,025	)		Net changes in revaluation of financial assets measured at fair value through other comprehensive income
		—			(155,723	)		149,518			(6,204	)		Shares of other comprehensive income of equity method investees
		163,687			(33,327	)		(4,870	)		125,489			Total of items that may be reclassified subsequently to profit (loss)
Total other comprehensive income (loss)		131,241			—			189,463			320,705			Total other comprehensive income, net of tax
Comprehensive income		895,104			—			11,792			906,897			Comprehensive income
														Comprehensive income for the period attributable to
Comprehensive income attributable to Toyota Motor Corporation		867,036			—			2,115			869,151			Toyota Motor Corporation
Comprehensive income attributable to noncontrolling interests		28,068			—			9,678			37,746			Non-controlling interests
		895,104			—			11,792			906,897			Comprehensive income

—22—

TOYOTA MOTOR CORPORATION    FY2021 Third 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)
		—			271,152			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 Third 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 Third 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 other 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.

N. Assets and liabilities held for sale that were included in prepaid expenses and other current assets, other in investment and other assets, other current liabilities and other long-term liabilities under U.S. GAAP have been reclassified into other current assets and other current liabilities under IFRS.

—25—

TOYOTA MOTOR CORPORATION    FY2021 Third 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 Transition Date 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 are capitalized if it meets the capitalization requirements.

—26—

TOYOTA MOTOR CORPORATION    FY2021 Third 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), 190,394 million yen (as of December 31, 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)			Third quarter (December  31, 2019)			Prior fiscal  year (March 31, 2020)
b. Fair value measurement of equity instruments		(990,815	)		(1,233,187	)		(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	)		(264,132	)		(324,014	)
Subtotal		(1,906,213	)		(2,146,850	)		(1,773,114	)
e. Capitalization of cost incurred for development of product		410,531			425,767			432,202
i. Unification of a reporting period		85,211			58,620			51,480
Others		36,732			(793	)		95,880
Total		(1,373,738	)		(1,663,256	)		(1,193,552	)

Subtotal represents reclassification from other components of equity.

—27—

TOYOTA MOTOR CORPORATION    FY2021 Third 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 Third Quarter (Consolidated)

< IFRS >

	FY2020															FY2021												FY2021
	1Q (2019/4-6)			2Q (2019/7-9)			3Q (2019/10-12)			9 months (2019/4-12)			12 months (‘19/4-‘20/3)			1Q (2020/4-6)			2Q (2020/7-9)			3Q (2020/10-12)			9 months (2020/4-12)			Forecast 12 months (‘20/4-‘21/3)
Vehicle Production (thousands of units)		2,311			2,236			2,146			6,693			8,820			1,080			1,990			2,262			5,332
(Japan) –including Daihatsu & Hino		1,134			1,122			1,066			3,322			4,413			679			1,031			1,144			2,854
[Daihatsu & Hino]		[265	]		[275	]		[277	]		[817	]		[1,109	]		[178	]		[269	]		[283	]		[729	]
(Overseas) –including Daihatsu & Hino		1,178			1,114			1,080			3,371			4,406			401			959			1,118			2,478
[Daihatsu & Hino]		[124	]		[155	]		[138	]		[418	]		[545	]		[15	]		[53	]		[84	]		[152	]
North America		499			456			434			1,389			1,807			187			500			489			1,176
Europe		174			143			182			498			674			82			138			200			420
Asia		386			413			366			1,165			1,522			109			230			333			672
Central and South America		86			69			76			231			293			10			67			69			147
Africa		33			32			22			87			110			13			24			27			63
Vehicle Sales (thousands of units)		2,318			2,340			2,201			6,858			8,955			1,158			1,928			2,353			5,438			7,600
(Japan) –including Daihatsu & Hino		555			585			516			1,656			2,240			385			536			592			1,513			2,100
[Daihatsu & Hino]		[158	]		[183	]		[139	]		[480	]		[657	]		[104	]		[159	]		[162	]		[425	]		[600	]
(Overseas) –including Daihatsu & Hino		1,762			1,755			1,684			5,202			6,715			774			1,392			1,760			3,925			5,500
[Daihatsu & Hino]		[65	]		[76	]		[70	]		[211	]		[285	]		[16	]		[31	]		[41	]		[88	]		[150	]
North America		744			702			668			2,114			2,713			285			646			753			1,683			2,300
Europe		279			251			248			778			1,029			141			254			285			679			970
Asia		410			436			409			1,255			1,600			182			274			392			848			1,240
Central and South America		104			109			114			327			403			30			66			87			184			260
Oceania		66			64			63			193			262			48			51			84			183			250
Africa		54			63			43			159			207			24			39			42			105			140
Middle East		106			128			138			371			493			62			60			115			237			340
Other		2			2			2			5			7			2			2			3			6
Total Retail Unit Sales (thousands of units) [Toyota, Daihatsu and Hino]		2,709			2,745			2,685			8,140			10,457			1,848			2,519			2,845			7,211			9,730

Supplemental 1

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

< IFRS >

	FY2020															FY2021												FY2021
	1Q (2019/4-6)			2Q (2019/7-9)			3Q (2019/10-12)			9 months (2019/4-12)			12 months (‘19/4-‘20/3)			1Q (2020/4-6)			2Q (2020/7-9)			3Q (2020/10-12)			9 months (2020/4-12)			Forecast 12 months (‘20/4-‘21/3)
Foreign Exchange Rates
Yen to US Dollar Rate		110			107			109			109			109			108			106			105			106			as premise: 105
Yen to Euro Rate		123			119			120			121			121			119			124			125			122			as premise: 123
Number of Employees		379,201			376,762			375,421			375,421			361,907			369,701			369,604			367,987			367,987	(Note 1)
Sales Revenues (billions of yen)		7,721.2			7,637.0			7,608.9			22,967.2			29,866.5			4,600.7			6,774.4			8,150.0			19,525.2			26,500.0
Geographic Information
Japan		4,175.0			4,246.5			4,043.6			12,465.3			16,441.8			2,675.6			3,687.7			4,384.6			10,748.1
North America		2,838.0			2,684.1			2,708.6			8,230.8			10,642.0			1,381.1			2,564.8			2,938.2			6,884.1
Europe		883.2			813.4			866.8			2,563.5			3,355.3			471.4			810.5			905.5			2,187.6
Asia		1,361.9			1,398.9			1,400.0			4,160.8			5,293.2			906.5			1,149.2			1,543.4			3,599.1
Other		553.8			521.6			555.5			1,631.1			2,114.1			281.2			419.1			606.0			1,306.3
Elimination		-2,090.8			-2,027.7			-1,965.8			-6,084.4			-7,980.0			-1,115.2			-1,857.0			-2,227.8			-5,200.2
Business Segment
Automotive		6,954.5			6,805.4			6,821.9			20,581.9			26,799.7			3,976.4			6,146.2			7,491.3			17,614.0
Financial Services		549.1			542.2			552.9			1,644.2			2,193.1			534.9			531.5			554.5			1,621.0
All Other		370.0			454.2			400.5			1,224.8			1,504.9			206.0			234.0			266.1			706.2
Elimination		-152.4			-164.8			-166.5			-483.8			-631.2			-116.7			-137.4			-162.0			-416.1
Operating Income (billions of yen)		740.6			658.6			640.0			2,039.3			2,399.2			13.9			506.0			987.9			1,507.9			2,000.0
(Operating Income Ratio) (%)		(9.6	)		(8.6	)		(8.4	)		(8.9	)		(8.0	)		(0.3	)		(7.5	)		(12.1	)		(7.7	)		(7.5	)
Geographic Information
Japan		429.9			396.8			403.0			1,229.8			1,585.2			77.4			164.9			538.5			780.8
North America		112.6			116.4			94.9			323.9			253.2			-68.5			187.3			212.9			331.7
Europe		38.6			35.0			45.7			119.5			143.8			-21.9			31.6			52.9			62.6
Asia		109.1			110.4			81.7			301.3			363.5			42.8			93.4			155.3			291.6
Other		21.1			24.7			23.9			69.8			84.0			-11.7			20.2			34.9			43.3
Elimination		29.0			-24.9			-9.3			-5.2			-30.6			-4.0			8.5			-6.8			-2.3
Business Segment
Automotive		617.8			490.4			570.9			1,679.2			2,013.1			-86.5			332.2			812.6			1,058.3
Financial Services		109.7			117.2			71.9			298.9			283.7			92.2			153.0			152.3			397.6
All Other		14.2			28.5			26.4			69.2			103.3			9.3			15.3			24.3			49.0
Elimination		-1.2			22.4			-29.2			-8.0			-0.9			-1.1			5.3			-1.3			2.9
Share of Profit (Loss) of Investments Accounted for Using the Equity Method (billions of yen)		104.7			95.1			75.8			275.7			310.2			-12.5			88.9			125.0			201.4			320.0
Income before Income Taxes (billions of yen)		850.9			770.8			771.9			2,393.7			2,792.9			118.2			610.5			1,141.1			1,869.9			2,550.0
(Income before Income Taxes Ratio) (%)		(11.0	)		(10.1	)		(10.1	)		(10.4	)		(9.4	)		(2.6	)		(9.0	)		(14.0	)		(9.6	)		(9.6	)
Net Income Attributable to Toyota Motor Corporation (billions of yen)		619.1			530.4			559.2			1,708.8			2,036.1			158.8			470.5			838.6			1,468.0			1,900.0
(Net Income Ratio) (%)		(8.0	)		(6.9	)		(7.4	)		(7.4	)		(6.8	)		(3.5	)		(6.9	)		(10.3	)		(7.5	)		(7.2	)
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			70.1			370.1			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			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			47,100			47,100

Supplemental 2

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

< IFRS >

	FY2020										FY2021									FY2021
	1Q (2019/4-6)		2Q (2019/7-9)		3Q (2019/10-12)		9 months (2019/4-12)		12 months (‘19/4-’20/3)		1Q (2020/4-6)		2Q (2020/7-9)		3Q (2020/10-12)		9 months (2020/4-12)			Forecast 12 months (‘20/4-‘21/3)
R&D Expenses (billions of yen)		297.4		286.9		288.5		872.9		1,110.3		280.7		286.8		265.8		833.4			1,100.0	(Note 5)
Depreciation Expenses (billions of yen)		196.9		192.3		207.7		597.0		803.3		204.0		221.0		217.8		642.9			870.0	(Note 6)
Geographic Information
Japan		88.6		91.7		97.5		277.8		376.5		98.1		109.8		101.1		309.1
North America		54.0		44.2		54.2		152.5		212.4		59.0		60.6		60.4		180.2
Europe		13.2		12.6		14.3		40.2		52.5		14.1		15.1		16.3		45.6
Asia		32.4		35.7		30.8		99.0		129.4		25.9		28.6		32.3		86.9
Other		8.5		8.0		10.7		27.3		32.3		6.7		6.8		7.4		21.0
Capital Expenditures (billions of yen)		272.7		337.9		346.9		957.6		1,372.3		260.3		325.2		316.1		901.7			1,350.0	(Note 6)
Geographic Information
Japan		144.8		183.4		155.0		483.3		747.2		147.1		160.0		157.5		464.7
North America		69.8		73.6		126.6		270.1		341.2		54.8		107.1		68.2		230.2
Europe		19.5		18.0		28.2		65.8		103.3		14.8		15.9		21.2		52.0
Asia		23.0		44.5		26.1		93.6		123.0		35.2		33.0		58.3		126.6
Other		15.4		18.3		10.9		44.6		57.4		8.3		8.9		10.7		28.0
Total Liquid Assets (billions of yen)		9,197.1		9,260.2		9,103.2		9,103.2		8,602.6		9,451.8		10,238.7		10,621.2		10,621.2	(Note 7)
Total Assets (billions of yen)		53,288.7		53,350.5		54,901.4		54,901.4		53,972.3		55,916.5		56,483.8		58,010.3		58,010.3
Toyota Motor Corporation Shareholders’ Equity (billions of yen)		20,096.3		20,312.2		20,828.5		20,828.5		20,618.8		20,713.9		21,010.8		21,804.1		21,804.1
Return on Equity (%)		12.4		10.5		10.9		11.2		10.0		3.1		9.0		15.7		9.2
Return on Asset (%)		4.6		4.0		4.1		4.2		3.8		1.2		3.3		5.9		3.5
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)	3Q (2020/10-12)		9 months (2020/4-12)
Effects of Marketing Activities		355.0		-615.0
Effects of Changes in Exchange Rates		-55.0		-175.0
Cost Reduction Efforts		50.0		100.0
From Engineering		20.0		55.0
From Manufacturing and Logistics		30.0		45.0
Increase or Decrease in Expenses and Expense Reduction Efforts		-30.0		85.0
Other		27.8		73.7
(Changes in Operating Income)		347.8		-531.3
Non-operating Income		21.3		7.6
Share of Profit (Loss) of Investments Accounted for Using the Equity Method		49.2		-74.2
Income tax expense, Net Income Attributable to Non-controlling Interests		-89.8		282.9
(Changes in Net Income Attributable to Toyota Motor Corporation)		279.3		-240.7

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