FINANCIAL SUMMARY
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
FY2004 Third Quarter
(October 1, 2003 through December 31, 2003)
English translation from the original Japanese-language document
TOYOTA MOTOR CORPORATION
This report contains summarized and condensed financial statements
prepared in accordance with accounting principles generally accepted in the
United States of America.
Effective from FY2004, Toyota prepares its consolidated financial
statements in accordance with accounting principles generally accepted in the
United States of America. The consolidated financial statements for FY2003 third
quarter and FY2003 stated herein have also been prepared in accordance with
accounting principles generally accepted in the United States of America.
BUSINESS RESULTS
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
1. Summary of Consolidated Financial Results of FY2004 Third Quarter
Financial Results
Domestic vehicle sales increased by 9 thousand units, or 1.7%, to 554
thousand units in FY2004 third quarter (the three-month period from October
1, 2003 to December 31, 2003) compared with FY2003 third quarter, primarily
as a result of the active introduction of new products that met customer
needs and the strong sales efforts of domestic dealers. Toyota's market
share excluding minivehicles reached 44.4% in FY2004 third quarter,
exceeding 40% as in the previous fiscal year. The market share including
minivehicles was 40.0% in FY2004 third quarter. Meanwhile, overseas vehicle
sales increased by 147 thousand units, or 14.7%, to 1,146 thousand units in
FY2004 third quarter compared with FY2003 third quarter, mainly due to the
introduction of new products that met local customer needs worldwide. As a
result, total vehicle sales in Japan and overseas increased by 156 thousand
units, or 10.1%, to 1,700 thousand units in FY2004 third quarter compared
with FY2003 third quarter.
Net revenues increased by 333.4 billion yen, or 8.2%, to 4,386.0
billion yen in FY2004 third quarter compared with FY2003 third quarter, and
operating income increased by 40.4 billion yen, or 11.2%, to 401.6 billion
yen in FY2004 third quarter compared with FY2003 third quarter. Among the
factors contributing to the increase in operating income of 160.0 billion
yen, marketing efforts accounted for 100.0 billion yen and cost reduction
efforts for 60.0 billion yen. On the other hand, the factors contributing to
the decrease in operating income of 119.6 billion yen mainly included the
effects of changes in exchange rates of 80.0 billion yen and increases in
labor costs and other expenses of 39.6 billion yen. Income before income
taxes, minority interest and equity in earnings of affiliated companies
increased by 129.6 billion yen, or 43.2%, to 429.7 billion yen in FY2004
third quarter compared with FY2003 third quarter. Net income increased by
107.1 billion yen, or 59.7%, to 286.4 billion yen in FY2004 third quarter
compared with FY2003 third quarter.
Consolidated 1
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
2. Consolidated Financial Results of FY2004 Third Quarter by Segment
(1) Segment Operating Results
Automotive:
Net revenues for the automotive operations increased by 304.4
billion yen, or 8.1%, to 4,055.3 billion yen in FY2004 third
quarter compared with FY2003 third quarter, and operating income
increased by 10.5 billion yen, or 3.1%, to 347.8 billion yen in
FY2004 third quarter compared with FY2003 third quarter. The
increase in operating income was mainly due to cost reduction
efforts made by TMC and its subsidiaries as well as increases in
vehicle units sold in regions including Europe, North America and
Asia, partially offset by increases in labor costs and other
expenses.
Financial services:
Net revenues for the financial services operations decreased by 5.4
billion yen, or 2.9%, to 180.6 billion yen in FY2004 third quarter
compared with FY2003 third quarter, while operating income
increased by 31.9 billion yen, or 155.9%, to 52.3 billion yen in
FY2004 third quarter compared with FY2003 third quarter. The
increase in operating income was mainly due to solid performance as
a result of an increase in financing volumes as well as the impact
of interest rate swaps stated at fair value with changes recognized
in income held by sales financing subsidiaries in the United States
of America in accordance with the Statement of Financial Accounting
Standards (FAS) No.133 as amended by several related pronouncements
including FAS No.138. The valuation gains on interest rate swaps
increased by 7.0 billion yen, to 9.1 billion yen in FY2004 third
quarter compared with FY2003 third quarter.
All other:
Net revenues for all other businesses increased by 33.6 billion
yen, or 18.6%, to 214.7 billion yen in FY2004 third quarter
compared with FY2003 third quarter, and operating income increased
by 1.7 billion yen, or 46.5%, to 5.5 billion yen in FY2004 third
quarter compared with FY2003 third quarter.
(2) Geographic Information
Japan:
Net revenues in Japan increased by 98.4 billion yen, or 3.5%, to
2,933.6 billion yen in FY2004 third quarter compared with FY2003
third quarter, while operating income decreased by 43.8 billion
yen, or 16.2%, to 226.1 billion in FY2004 third quarter compared
with FY2003 third quarter. The decrease in operating income was
mainly due to the effects of changes in exchange rates and
increases in labor costs and other expenses, partially offset by an
increase in vehicle units sold and steady achievements in cost
reduction.
North America:
Net revenues in North America decreased by 20.7 billion yen, or
1.3%, to 1,603.7 billion yen in FY2004 third quarter compared with
FY2003 third quarter, while operating income increased by 46.6
billion yen, or 57.2%, to 128.2 billion yen in FY2004 third quarter
compared with FY2003 third quarter. The increase in operating
income was due to solid performance primarily attributable to cost
reduction efforts and increases in both local production volume and
vehicle units sold, as well as an increase in valuation gains on
interest rate swaps, recorded by sales financing subsidiaries in
the United States of America.
Europe:
Net revenues in Europe increased by 109.3 billion yen, or 27.0%, to
514.3 billion yen in FY2004 third quarter compared with FY2003
third quarter, and operating income increased by 24.4 billion yen,
or 8,767.5%, to 24.7 billion yen in FY2004 third quarter compared
with FY2003 third quarter. The increase in operating income was
mainly due to increases in local production volumes in the United
Kingdom and France as well as increases in vehicle units sold.
Other Foreign Countries:
Net revenues in other markets increased by 147.1 billion yen, or
33.0%, to 592.5 billion yen in FY2004 third quarter compared with
FY2003 third quarter, and operating income increased by 10.0
billion yen, or 69.4%, to 24.3 billion yen in FY2004 third quarter
compared with FY2003 third quarter. The increase in operating
income was primarily due to increases in vehicle units sold mainly
in Asia.
Consolidated 2
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
3. Others
Accounting Treatment regarding Transfer of the Substitutional Portion of the
Employee Pension Fund to the Government
TMC and some of its affiliated companies in Japan applied for
exemption from the payment of benefits related to future employee services
with respect to the substitutional portion of the Employee Pension Fund and
obtained approval from the Minister of Health, Labour, and Welfare from
FY2003 onwards. In FY2004 and thereafter, it is expected that these
companies will apply for approval for the separation of the remaining
benefit obligation of the substitutional portion which relates to past
employee services. Once approval has been obtained, the plan assets required
to be transferred to the government pursuant to the government formula will
be then transferred. TMC completed the transfer of the plan assets relating
to the substitutional portion in January 2004.
Under the accounting principles generally accepted in the United
States of America, the gains or losses on the transfer of the plan assets
relating to the substitutional portion will be recognized in entirety in the
consolidated results upon completion of the transfer.
Consolidated 3
CONSOLIDATED Production and Sales
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
1. Production
(Units)
-------------------------------------=====================-----------------------------------------------------
FY2004 third quarter FY2003 third quarter
(October 2003 through (October 2002 through Increase
December 2003) December 2002) (Decrease)
---------------------------------------------------------------------------------------------------------------
Japan 1,099,603 1,074,902 24,701
----------------------------------------------------------------------------------------------------
North America 259,719 215,180 44,539
-------------------------------------------------------------------------------------------------
Vehicles Europe 136,960 105,974 30,986
(new) -------------------------------------------------------------------------------------------------
Others 175,856 119,077 56,779
-------------------------------------------------------------------------------------------------
Overseas total 572,535 440,231 132,304
----------------------------------------------------------------------------------------------------
Total 1,672,138 1,515,133 157,005
---------------------------------------------------------------------------------------------------------------
Houses (Japan) 1,256 945 311
-------------------------------------=====================-----------------------------------------------------
Note: The total production of vehicles (new) includes 168,805 units of
Daihatsu brand vehicles (including OEM production) in FY2004 third
quarter, and 152,310 units in FY2003 third quarter, and 20,957 units
of Hino brand vehicles (including OEM production) in FY2004 third
quarter, and 12,349 units in FY2003 third quarter.
2. Sales (by destination)
(Units)
-------------------------------------=====================------------------------------------------------------
FY2004 third quarter FY2003 third quarter Increase
(October 2003 through (October 2002 through (Decrease)
December 2003) December 2002)
---------------------------------------------------------------------------------------------------------------
Japan 553,867 544,807 9,060
----------------------------------------------------------------------------------------------------
North America 561,628 533,378 28,250
-------------------------------------------------------------------------------------------------
Vehicles Europe 218,029 169,799 48,230
(new) -------------------------------------------------------------------------------------------------
Others 366,846 296,312 70,534
-------------------------------------------------------------------------------------------------
Overseas total 1,146,503 999,489 147,014
----------------------------------------------------------------------------------------------------
Total 1,700,370 1,544,296 156,074
---------------------------------------------------------------------------------------------------------------
Houses (Japan) 1,442 845 597
-------------------------------------=====================-----------------------------------------------------
Note: The total sales of vehicles (new) includes 145,181 units of Daihatsu
brand vehicles in FY2004 third quarter, and 121,532 units in FY2003
third quarter, and 19,897 units of Hino brand vehicles in FY2004
third quarter, and 13,376 units in FY2003 third quarter.
Consolidated 4
CONSOLIDATED STATEMENTS OF INCOME
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
(Amounts are rounded to the nearest million yen.)
- -----------------------------------------=======================----------------------------------------------------
FY2004 third quarter FY2003 third quarter Increase
(October 2003 through (October 2002 through (Decrease)
December 2003) December 2002)
- --------------------------------------------------------------------------------------------------------------------
Net revenues : 4,386,059 4,052,610 333,449
Sales of products 4,210,510 3,869,360 341,150
Financing operations 175,549 183,250 (7,701)
Costs and expenses : 3,984,366 3,691,378 292,988
Cost of products sold 3,387,726 3,113,532 274,194
Cost of financing operations 74,590 99,925 (25,335)
Selling, general and administrative 522,050 477,921 44,129
Operating income 401,693 361,232 40,461
Other income (expense) : 28,012 (61,103) 89,115
Interest and dividend income 13,020 10,647 2,373
Interest expense (4,209) (6,528) 2,319
Other income (loss), net 19,201 (65,222) 84,423
Income before income taxes, minority
interest and equity in earnings of
affiliated companies 429,705 300,129 129,576
Provision for income taxes 166,777 142,159 24,618
Income before minority interest and equity 262,928 157,970 104,958
in earnings of affiliated companies
Minority interest in consolidated (14,635) 2,744 (17,379)
subsidiaries
Equity in earnings of affiliated companies 38,177 18,650 19,527
Net income 286,470 179,364 107,106
- -----------------------------------------=======================----------------------------------------------------
(Yen)
- -----------------------------------------=======================----------------------------------------------------
Net income per share - basic 84.83 50.74 34.09
Net income per share - diluted 84.82 50.74 34.08
- -----------------------------------------=======================----------------------------------------------------
Consolidated 5
CONSOLIDATED BALANCE SHEETS
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
(Amounts are rounded to the nearest million yen.)
- -----------------------------------------=========================--------------------------------------------------
FY2004 third quarter FY2003 Increase
(As of December 31, 2003) (As of March 31, 2003) (Decrease)
- --------------------------------------------------------------------------------------------------------------------
Assets
Current assets : 8,291,815 8,622,233 (330,418)
Cash and cash equivalents 1,231,869 1,592,028 (360,159)
Time deposits 74,767 55,406 19,361
Marketable securities 567,007 605,483 (38,476)
Trade accounts and notes receivable, less 1,313,066 1,475,797 (162,731)
allowance for doubtful accounts
Finance receivables, net 2,546,291 2,505,140 41,151
Other receivables 489,486 513,952 (24,466)
Inventories 1,070,562 1,025,838 44,724
Deferred income taxes 411,572 385,148 26,424
Prepaid expenses and other current assets 587,195 463,441 123,754
Noncurrent finance receivables, net 3,074,883 2,569,808 505,075
Investments and other assets 4,417,277 3,757,054 660,223
Property, plant and equipment : 5,302,239 5,203,879 98,360
Land 1,131,092 1,064,125 66,967
Buildings 2,780,941 2,521,208 259,733
Machinery and equipment 7,602,630 7,089,592 513,038
Vehicles and equipment on operating leases 1,503,792 1,601,060 (97,268)
Construction in progress 212,702 211,584 1,118
Less - Accumulated depreciation (7,928,918) (7,283,690) (645,228)
- --------------------------------------------------------------------------------------------------------------------
Total assets 21,086,214 20,152,974 933,240
- -----------------------------------------=========================--------------------------------------------------
Consolidated 6
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
(Amounts are rounded to the nearest million yen.)
- -----------------------------------------=========================--------------------------------------------------
FY2004 third quarter FY2003 Increase
(As of December 31, 2003) (As of March 31, 2003) (Decrease)
- --------------------------------------------------------------------------------------------------------------------
Liabilities
Current liabilities : 7,275,225 7,053,936 221,289
Short-term borrowings 2,267,995 1,855,648 412,347
Current portion of long-term debt 1,147,370 1,263,017 (115,647)
Accounts payable 1,465,097 1,531,552 (66,455)
Other payables 692,196 618,748 73,448
Accrued expenses 1,018,096 1,063,496 (45,400)
Income taxes payable 202,290 300,718 (98,428)
Other current liabilities 482,181 420,757 61,424
Long-term liabilities : 5,726,796 5,662,572 64,224
Long-term debt 4,148,923 4,137,528 11,395
Accrued pension and severance costs 1,074,375 1,052,687 21,688
Deferred income taxes 436,462 371,004 65,458
Other long-term liabilities 67,036 101,353 (34,317)
Total liabilities 13,002,021 12,716,508 285,513
Minority interest in consolidated 445,957 315,466 130,491
subsidiaries
Shareholders' equity
Common stock 397,050 397,050 --
Additional paid-in capital 495,138 493,790 1,348
Retained earnings 7,975,046 7,301,795 673,251
Accumulated other comprehensive loss (498,672) (604,272) 105,600
Treasury stock, at cost (730,326) (467,363) (262,963)
Total shareholders' equity 7,638,236 7,121,000 517,236
- --------------------------------------------------------------------------------------------------------------------
Total liabilities and shareholders' equity 21,086,214 20,152,974 933,240
- -----------------------------------------=========================--------------------------------------------------
Consolidated 7
SEGMENT INFORMATION
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
1. Segment Operating Results
(1) FY2004 third quarter (October 2003 through December 2003)
(Amounts are rounded to the nearest million yen.)
=========================================================================================================
Automotive Financial Services All Other Intersegment Consolidated
Elimination
---------------------------------------------------------------------------------------------------------
Net revenues :
(1) Sales to external 4,053,213 175,549 157,297 -- 4,386,059
customers
(2) Intersegment sales 2,137 5,016 57,404 (64,557) --
and transfers
Total 4,055,350 180,565 214,701 (64,557) 4,386,059
---------------------------------------------------------------------------------------------------------
Operating expenses 3,707,551 128,270 209,111 (60,566) 3,984,366
---------------------------------------------------------------------------------------------------------
Operating income 347,799 52,295 5,590 (3,991) 401,693
=========================================================================================================
(2) FY2003 third quarter (October 2002 through December 2002)
(Amounts are rounded to the nearest million yen.)
---------------------------------------------------------------------------------------------------------
Automotive Financial Services All Other Intersegment Consolidated
Elimination
---------------------------------------------------------------------------------------------------------
Net revenues :
(1) Sales to external 3,747,809 183,250 121,551 -- 4,052,610
customers
(2) Intersegment sales 3,105 2,753 59,507 (65,365) --
and transfers
Total 3,750,914 186,003 181,058 (65,365) 4,052,610
---------------------------------------------------------------------------------------------------------
Operating expenses 3,413,592 165,567 177,241 (65,022) 3,691,378
---------------------------------------------------------------------------------------------------------
Operating income 337,322 20,436 3,817 (343) 361,232
---------------------------------------------------------------------------------------------------------
Note: Operating incomes by operating segment in FY2003 third quarter under the
Japanese accounting standards are 352,022 million yen for automotive,
24,327 million yen for financial services and 4,807 million yen for all
other.
Consolidated 8
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
2. Geographic Information
(1) FY2004 third quarter (October 2003 through December 2003)
(Amounts are rounded to the nearest million yen.)
======================================================================================================================
Japan North America Europe Other Foreign Intersegment Consolidated
Countries Elimination
----------------------------------------------------------------------------------------------------------------------
Net revenues :
(1) Sales to external 1,797,144 1,569,593 468,063 551,259 -- 4,386,059
customers
(2) Intersegment
sales and 1,136,497 34,064 46,262 41,266 (1,258,089) --
transfers
Total 2,933,641 1,603,657 514,325 592,525 (1,258,089) 4,386,059
----------------------------------------------------------------------------------------------------------------------
Operating expenses 2,707,513 1,475,445 489,673 568,153 (1,256,418) 3,984,366
----------------------------------------------------------------------------------------------------------------------
Operating income 226,128 128,212 24,652 24,372 (1,671) 401,693
======================================================================================================================
(2) FY2003 third quarter (October 2002 through December 2002)
(Amounts are rounded to the nearest million yen.)
----------------------------------------------------------------------------------------------------------------------
Japan North America Europe Other Foreign Intersegment Consolidated
Countries Elimination
----------------------------------------------------------------------------------------------------------------------
Net revenues :
(1) Sales to external 1,706,872 1,548,344 385,951 411,443 -- 4,052,610
customers
(2) Intersegment
sales and 1,128,350 76,073 19,054 33,993 (1,257,470) --
transfers
Total 2,835,222 1,624,417 405,005 445,436 (1,257,470) 4,052,610
----------------------------------------------------------------------------------------------------------------------
Operating expenses 2,565,340 1,542,847 404,727 431,050 (1,252,586) 3,691,378
----------------------------------------------------------------------------------------------------------------------
Operating income 269,882 81,570 278 14,386 (4,884) 361,232
----------------------------------------------------------------------------------------------------------------------
Note: Operating incomes by geographic region in FY2003 third quarter under
the Japanese accounting standards are 277,485 million yen for Japan,
89,173 million yen for North America, 246 million yen for Europe and
16,333 million yen for other foreign countries.
Consolidated 9
[REFERENCE]
(All financial information has been prepared in accordance with accounting
principles generally accepted in Japan)
UNCONSOLIDATED STATEMENTS OF INCOME
(Million yen; amounts less than one million yen are omitted.)
- -------------------------------------------==========================------------------------------------------------
FY2004 third quarter FY2003 third quarter Increase
(October 2003 through (October 2002 through (Decrease)
December 2003) December 2002)
- ---------------------------------------------------------------------------------------------------------------------
Net sales 2,292,065 2,302,043 (9,978)
Operating income 176,812 236,609 (59,797)
Ordinary income 212,558 261,805 (49,247)
Income before income taxes 212,558 261,805 (49,247)
Income taxes - current 87,600 112,500 (24,900)
Income taxes - deferred (11,200) (4,400) (6,800)
Net income 136,158 153,705 (17,547)
- -------------------------------------------==========================------------------------------------------------
UNCONSOLIDATED BALANCE SHEETS
(Million yen; amounts less than one million yen are omitted.)
- -------------------------------------------==========================------------------------------------------------
FY2004 third quarter FY2003 Increase
(As of December 31,2003) (As of March 31,2003) (Decrease)
- ---------------------------------------------------------------------------------------------------------------------
Assets
Current assets 2,892,098 3,620,881 (728,783)
Cash, deposits and trade accounts 971,004 1,033,270 (62,266)
receivable
Marketable securities 745,993 1,373,742 (627,749)
Others 1,175,099 1,213,869 (38,770)
Fixed assets 5,548,090 4,971,941 576,149
Property, plant and equipment 1,248,587 1,269,042 (20,455)
Buildings, machinery and equipment 680,791 677,800 2,991
Others 567,796 591,241 (23,445)
Investments and other assets 4,299,503 3,702,899 596,604
Investments in securities 2,183,705 1,720,649 463,056
Others 2,115,797 1,982,249 133,548
- ---------------------------------------------------------------------------------------------------------------------
Total assets 8,440,188 8,592,823 (152,635)
- -------------------------------------------==========================------------------------------------------------
- -------------------------------------------==========================------------------------------------------------
FY2004 third quarter FY2003 Increase
(As of December 31,2003) (As of March 31,2003) (Decrease)
- ---------------------------------------------------------------------------------------------------------------------
Liabilities
Current liabilities 1,650,541 2,040,821 (390,280)
Long-term liabilities 843,284 848,679 (5,395)
Total liabilities 2,493,825 2,889,501 (395,676)
Shareholders' equity
Common stock 397,049 397,049 --
Capital surplus 416,970 416,970 --
Retained earnings 5,624,083 5,287,601 336,482
Net unrealized gains on other securities 269,712 69,019 200,693
Less: treasury stock (761,453) (467,320) (294,133)
Total shareholders' equity 5,946,362 5,703,321 243,041
- ---------------------------------------------------------------------------------------------------------------------
Total liabilities and shareholders' equity 8,440,188 8,592,823 (152,635)
- -------------------------------------------==========================------------------------------------------------